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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT DECEMBER i, 1934 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent C FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Volume of industrial production and factory employment which usually shows little change at this season in creased in October, reflecting chiefly the resumption of activity at textile mills. Wholesale commodity prices, after declining in September and October, advanced in the first half of November. Industrial production and employ ment. Activity at industrial establish ments, as measured by the Board’s sea sonally adjusted index showed an increase from 71 per cent of the 1923 1925 average in September to 73 per cent in October. Among the industries producing durable manufactures, out put at steel mills increased from 23 per cent of capacity for the month of September to 25 per cent for October, while output of automobiles and lumber declined. In November activity at steel mills continued to increase and in the week ending November 24 was at about 28 per cent of capacity. Automobile production has declined further in con nection with the preparation of new models. The production of non-durable manufactures in the aggregate showed a considerable growth in October, reflecting sharp increases at cotton, woolen and silk mills, offset in part by a decline in activity at meat packing establishments. The increase in output at textile mills after the INDUSTRIAL PRODUCTION Index number of industrial production, ad (1923-1925 aver for seasonal variation. Digitizedjusted for FRASER age =100.) strike in September brought output to a higher level than in August. Among the minerals, daily output of crude petroleum declined in October and that of anthracite increased by an amount smaller than is usual at this season. Factory employment and payrolls in the country as a whole increased con siderably between the middle of Sep tember and the middle of October. Sharp increases were reported at mills producing textile fabrics, while in the automobile, shoe and canning industries there were declines of a seasonal nature. The value of construction contracts awarded was somewhat larger in Oc tober than in any other recent month. There was an increase in residential work as well as in publicly-financed projects. Agriculture. Department of Agricul ture estimates, based on November 1 conditions, indicate a cotton crop of 9,634,000 bales, 26 per cent smaller than the 1933 crop, and a corn crop of 1,372,000,000 bushels, 41 per cent smaller than last season and 45 per cent smaller than 1927-1931 average. The tobacco crop is also considerably smaller than usual, while the white potato crop is slightly above the fiveyear average. Distribution. The number of freight cars loaded per working day decreased front September to October. Depart ment store sales showed a seasonal in crease and were at about the same level, on a seasonally adjusted basis, as in most other months since March. Rural sales of general merchandise, as re ported by the Department of Com merce, increased by less than the usual seasonal amount following an unusually large increase in September. Commodity prices. Wholesale com modity prices, as measured by the Bureau of Labor Statistics’ weekly in dex, declined from 77.8 per cent of the 1926 average in the week ending Sep tember 8 to 76.0 per cent in the week ending November 3 and then rose in the following two weeks to 76.7 per cent. MEMBER BANK CREDIT Wednesday figures for reporting member banks in 90 leading cities. Latest figures are for November 14. FACTORY EMPLOYMENT DEPARTMENT STORE SALES Federal Reserve Board’s index of factory em ployment adjusted for seasonal variation. (1923-1925 average =100.) Indexes of daily average value of sales. (1923 1925 = 100.) The decline was largely in prices of farm products and foods but there were also some decreases in the prices of textiles and building materials. In creases in the first half of November were largely in the prices of farm prod ucts. The price of scrap steel also advanced, while lead and zinc declined. Bank credit. Excess reserves of mem ber banks were about $1,910,000,000 on November 21, showing an increase of $150,000,000 in the preceding five weeks. The increase in reserves held was $200,000,000, of which $50,000,000 covered a growth in required reserves. Additions to reserves resulted mainly from gold imports and further issues of silver certificates. Loans and investments of reporting member banks in leading cities declined somewhat in the four weeks ending No vember 14, following an increase in the previous month. Substantial de clines were shown in loans on securities and in holdings of securities other than those of the United States Government. Other loans, which had increased con siderably in previous months, also showed some decline, while holdings of direct obligations of the United States Government and of securities fully guaranteed by the Government in creased considerably. Customers’ de posits continued to increase, while Gov ernment deposits declined. There was a further decline in openmarket rates on bankers’ acceptances at the end of October to an offering rate of per cent. Yields on short-term Gcfvernment securities and other short term open-market rates showed little change. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial activity throughout this district showed improvement during October but slackened seasonally in November. Production of manufac tures, coal and crude oil combined pro portionately increased more than usual, the adjusted index rising from 65 in September to 67 in October; for the year to date the volume of industrial output continues about 6 per cent larger than last year, even though monthly comparisons since June have been unfavorable. The value of build ing contracts awarded showed a marked gain in the month and ex ceeded considerably the amount of last year. Agricultural activity has measured up to the normal conditions for October and November and the sales of farm crops and livestock prod ucts have been larger this year than last, reflecting partly higher prices. Retail trade sales were larger in October than in September but the ex tent of this gain was not as great as usual, while sales at wholesale in creased more than customary. Busi ness in November showed seasonal expansion. Shipments of finished mer chandise on the whole have been well sustained since September while total freight car loadings have not been as satisfactory as is to be expected. Employment and earnings in twelve branches of industry and trade showed marked increases from September to October, the largest gains in payrolls occurring in manufacturing, bitu minous coal, building trades and re tail trade. In October this bank’s general index of industrial employ ment was 109 and of payrolls 120, relative to the 1932 average as 100. In the first ten months this year employ ment on the average was 10 per cent larger and earnings 25 per cent greater than in the same period last year. In coming reports from Pennsylvania factories for November indicate sea sonal decreases in activity. Manufacturing. The demand for fac tory products manufactured in this district as a whole has been in about the same volume as in the previous month, although during the early part of November there has been some seasonal falling off, especially in those textile lines which were unusually ac tive in October, immediately follow ing the strike. While some industries, such as cotton and silk goods, floor coverings, paper and cigars, apparently have had a larger volume of sales since late September than last year, most manufacturing lines report de creases in the volume of business. Prices of finished factory products generally have declined slightly in Oc tober but displayed some firmness in early November. Quotations for com modities other than farm products and foods, after showing a small decline in October, turned a little upward in the first half of November. The price index, constructed by the Bureau of Labor Statistics, on November 17 was 78.3 per cent of the 1926 average or one per cent higher than a year ago. Unfilled orders for manufactures in general seem to be somewhat smaller than a month and a year ago, although in some instances a fairly large back log has been reported. There is an MANUFACTURING ACTIVITY MERCANTILE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT PRODUCTION RETAIL DOLLAR SALES EMPLOYMENT WHOLESALE “ DOLLAR SALES PAYROLLS 1929 1930 Page Two 1931 1932 1933 1934 1930 1931 1932 1933 1934 apparent tendency, however, to place orders in smaller lots than usual and only for a short period in advance. Stocks of both finished goods and raw materials appear to be moderate and smaller than a year ago. Larger than customary increases oc curred in the number of factory wage earners on the rolls and in the amount of wages disbursed in this district dur ing October. The textile industries, which normally employ about 18 per cent of all factory workers in Penn sylvania, accounted for the major por tion of the increase. Employment in Pennsylvania textile plants rose 12 per cent, while payrolls and working hours increased 24 per cent from the middle of September to the middle of Octo ber, reflecting the fact that in the first part of September the textile indus try here as in the country was pass ing through a period of severe labor difficulties. This was especially true of wool, silk and cotton manufactures, so that these industries showed some of the largest gains in employment, payrolls and operating time. Current reports, supplemented by the census figures, indicate that the Penn sylvania manufacturing industry as a whole employed approximately 790,000 shop workers about the middle of Oc tober, a gain of over 2 per cent from September but a loss of one per cent as compared with a year ago. The amount of wages paid in October averaged about $15,000,000 a week, 7 per cent more than in the previous month and 2 per cent larger than in October 1933. Since the middle of 1933 the average hourly wage earnings per worker in Pennsylvania factories has risen very sharply, reaching a higher level than that prevailing in 1927 and 1928. The average weekly hours worked per em ploye, on the other hand, show no such increase but rather a tendency to move only slightly above the depres sion level. This departure from a fairly close relation in the fluctuation of these two factors that existed prior to 1929 is attributable in a large meas ure to the establishment of maximum working hours and minimum wage rates under the industrial codes. A'n average factory wage earner in Oc tober worked about 32.5 hours per week as compared with 32.9 a year ago and 31.5 hours two years ago. But his hourly earnings amounted to 57.2 cents in October this year as against 54.5 a year ago and 44.9 two years ago. Early reports for November which are now being received by the bank indicate that employment, payrolls and Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 Adjusted indexes allow for the usual seasonal change which results 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 seasonal expecta tions. Industrial production............. Manufacturing—total..................... Durable goods.............................. Consumers’ goods........................ Metal products............................ Textile products........................... Transportation equipment.... Food products............................... Tobacco and products............... Building materials....................... Chemicals and products............ Leather and products................. Paper and printing...................... Electric power output................ Industrial use of electricity.. .. Coal mining........................................ Anthracite..................................... Bituminous.................................... Employment and wages—Pa. Adjusted for seasonal variation (All figures are rounded from original data) Percentage com parison Oct. Aug. Sept. Oct. 1933 1934 1934 1934 66 67 47 53 81 43 72 76 22 98 119 80 181 133 53 55 38 65 62 67 62 50 49 79 72 55 52 71 59 46 44 76 73 90 89 26 27 97 97 117 110 78 77 198 190 125 135 51 61 50 62 58 56 64p 65p 48p 78p 54 72p 44 71p 90 24 95p 102p 78 192 132 53 53 56 Factory wage earners..................... Factory payrolls............................... Employe-hours (1927-28=100). . General—12 occupations: Employment (1932= 100)......... Payrolls (1932=100).................. Oct. 1934 with Month ago Year ago + + — 2 - 3 4- i — 5 + 2 -12 + 3 — 1 +19 + 8 - 3 -14 - 3 + 6 - 1 + 0 - 4 +46 3 5 1 4+ + 4 22 0 2 1 13 2 8 0 1 3 13 14 0 — + — + + — — — 4- 2* _ J* 7* 4- 2* 7* — 5* + 4- Contracts awardedf—total...... 25 25 24 33 Contracts awardedf—residential. . 10 11 11 14 Permits for building—17 cities... . 7 8 6 4 Mortgages recorded—Philadelphia. 5 14 10 6 Real estate deeds—Philadelphia.. . 45 32 50 60 Sheriff deeds (1930 = 100). . . Other deeds (1930 = 100)___ Writs for Sheriff sales—Phila.. . 1173 1019 805 1028 Distribution Business liquidations 63 61 64 61 101 78 55 56 54 62 69 62 64 78 72 67 68 107 106 81 69 52 52 53 52 55 56 67p 61p 73p 68 108 71 51 52 52 Number.......................................... Amount of liabilities................... Prices—United States +13* 76 +32* 56 +13* 56 +53 3 +18 -22 -18 -25* — 12* -23 — + 29 9 22 146 55 _ — + + + + + 4- + 7 — 0 +15 + 12 + 7 — 9 — 8 - 7 - 3 2 4 2 1 3 3 2 0 7 16* — 2* 29* — 45* 74 53 52 68p 69p 56 74p 42 76p 110 25 97p 108p 79 198 128 67 68 60 76 57 58 77 55 59 110 106 107 109 +25* 117 116 113 120 +38 -21 +01 + +39 + -17 -4-1073* — 17* 19* — 17* -12 + 28 + + - 24 25 24 33 11 14 11 9 7 7 4 6 9 4 5 13 63 41 30 52 215 115 15 178 67 53 69 56 587 978 933 514 71 68 72 64 92 64 60 59 62 49 59 74 67 90 89 54 54 53 62 67 82 71 85 66 57 58 58 76p 68p 83p 72 99 58 55 56 60 — 51* 70 — 46* 105 46 81 60 82 69 58 +10 +19 + 0 +11 + 7 + 4 +15 61 63 66 63 - 4 + 3 63 54 62 65 27 60 28 72 28 69 29 73 + + 4 4 +11 27 61 25 72 25 69 30 73 Wholesale (1926=100)........... +20 1* Farm products......................... Foods.......................................... Other commodities.................. Retail food (1913=100)........ Philadelphia.............................. Scranton..................................... in dollar figures) + 6 69 65 64 - 4 70 67 64 +28 — 5 +35 55 58 53 -15 83 67 59 +38 41 45 42 + 2 75 75 77 + 9 y3 96 103 +11 23 30 30 + 7 99 98 97 + 1 126 119 121 76 77 - 1 81 + 6 180 188 180 + 7 129 128 143 +20 68 50 61 +20 71 50 62 +17 41 55 57 + 10* Payment of accounts Check payments.......................... Rate of collections (actual) Retail trade............................... Wholesale trade....................... Oct. Aug. Sept. Oct. 1934 1933 1934 1934 1934 with 10 mos. 1933 0* 3* 2* 6* 4-j- Building and real estate Retail trade—sales...................... Retail trade—stocks................... Wholesale trade—sales.............. Wholesale trade—stocks........... Life insurance sales....................... New passenger auto, registrations. Freight car loadings—total............. Mdse, and misc. (64.9% of total) Coal (23.5% of total)............ Not adjusted 1933 July 1934 _ _ 4* - 2* 2* 0* 1* 2* + 7* +27* +16* + 1* + 8* + 8* + 3* +15* +27* +16* + 12* 71 76 78 76 56 70 73 71 64 74 76 75 77 78 78 78 +12* 107 113 117 115 +17* 111 120 123 120 +10* 114 118 120 117 Per cent change from Aug. 1934 Sept. 1934 1934 $ $ Month ago Year ago -40 0 + 4 + 1 -88 + 3 +55 + 6 — + + - - 9 +14 + 12 -20 Banking and credit Federal Reserve Bank Bills discounted.............................. Other bills and securities............. Member bank reserves................. Ratio.................................................. Reporting member banks Loans to customers....................... Other loans and investments___ Net deposits.................................... Bankers’ acceptances outstanding. * 26 163 128 62.4% $490 538 940 16.3 * 6 168 218 68.3% $ 454 593 1067 13.9 $ 5 168 198 66.4% $ 454 608 1052 13.7 * Computed from data unadjusted for seasonal variation, t 3-month moving daily average. 5 168 190 65.9% $ 454 611 1055 13.2 3 168 198 66.4% $ 445 612 1058 13.1 2 0 0 1 p-Preliminary. Page Three OUTPUT OF METAL PRODUCTS OUTPUT OF TEXTILE GOODS PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT 102 -2SAVG.JI00 PERCENT \K 150 V: •• 125 V\ •% ELECTRICAL . APPARATUS : Vw IOO u 75 \A wV 50 WOOLENS 1 r AND WORSTEDS • 4_ _ _ ■ •• • V STEEL NG0TS vy V V tC s V 25 O TV y \ T COTTON ADJUSTED TOR SEASONAL VAR ATlON 1930 1931 1932 1933 1934 1935 1929 1930 1931 1932 1934 Sources: American Iron and Steel Institute; Federal Reserve Bank of Philadelphia. working time have declined since late October, reflecting the usual seasonal let-down in plant operation. Output of manufactures in October has increased more than seasonally, after a sharp reduction in September. This bank’s index of productive activ ity, which is adjusted for the usual sea sonal variation, rose to 65 per cent of the 1923-25 average as compared with a low of 62 in September. A year ago this index was 67, declining steadily up to January this year from an exception ally high level in July. Unusually large increases in the ac tivity of such textile industries as silk, wool and cotton products, carpets and rugs, and underwear more than offset large decreases in output during Sep tember when production was greatly curtailed by the strike. The metal group also showed marked improve ment after a drop in operations in the previous month, owing mainly to in creased activity of steel plants and elec trical apparatus. The largest excep tional declines in the month were shown by the two groups comprising building materials, and leather and shoes. Other groups on the whole maintained their seasonal levels or were operating close to them. While such important industries as those manufacturing metal products, transportation equipment and building materials have shown substantial in creases thus far this year, large de creases in most of the textile branches in this period have pulled down the total volume of output so that it is 4 per cent smaller than the total recorded in the first ten months last year. Output of electric power in this dis trict increased slightly more than usual in October and for the year to date has continued 6 per cent larger than http://fraser.stlouisfed.org/ Page Four Federal Reserve Bank of St. Louis last year. Consumption of electrical energy by industries has decreased more sharply than was expected but sales to most other users have in creased seasonally, so that total sales in October were 5 per cent larger than a year ago. Coal and other fuels. The output of anthracite fuel was about 10 per cent greater in October than in September but this rate of gain was not as large as usual at this time. In November further seasonal increase has been in evidence. The volume of bituminous coal mined has continued upward, al though at a somewhat slower gait than is normally expected. Following an unusual gain in September, production of coke has decreased, contrary to the usual seasonal tendency. While these changes on the whole were not season ally favorable, the quantity of solid fuels produced and shipped to con sumers so far this year has exceeded (Output and shipment figures are daily averages) Anthracite Production.............tons Shipments..............tons Stocksf.........1000 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) Pricest- . . (1926=100) the country at present appears to be ample and is well above the stocks held by various establishments at the same time in the past two years. Employment and payrolls in the first part of October showed further gains at anthracite mines; in the bituminous fields, the number of workers changed little but the amount of wage disburse ments in the pay period ending about the middle of October was larger than in the same period of September. The accompanying table gives comparisons in detail. Building. The value of all building contracts awarded during October totaled about $12,817,000 as compared with $6,454,000 in September. This gain was considerably larger than usual and reflects chiefly substantial increases in public works and utilities, factory buildings, two-family dwellings and sundry buildings. Contracts for edu cational buildings, apartments and hotels, on the other hand, declined dur- Per cent change from 1934 Month Year ago ago 181,600 167,780 2,616 82.0 115,755 +10 + 6 + 8 + 1 + 3 - 4 - 7 +67 + 0 + 3 284,800 22,871 96.4 142,519 + + + - 5 0 0 0 +46 + 3 63.8* — 5 85.6 0 -17 + 4 105.9* - 2 58.0 - 2 + 2 + 4 +50 Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated, t September. last year’s tonnage by an appreciable margin. The available supply of fuels here and in other industrial parts of Building contracts Philadelphia Federal Reserve District Per cent change Oct. 1934 (ooo’s 1934 From omitted) month from 10 mos. ago 1933 Residential: Apts, and hotels........ $ 68 Family houses............ 1,895 N on-residential: Commercial................. 930 Factories...................... 676 Educational................. 758 All other....................... 1,456 — 46 + 87 + 65 - 9 + 13 +277 - 51 +256 + 19 - 2 +416 - 15 Total buildings.... $ 5,783 Public works and utili7,034 ties................................. + 42 + 14 +197 +191 Grand total............ $12,817 + 99 + 59 Source: F. W. Dodge Corporation ing the month after sharp gains in September. The dollar volume of building con- VALUE OF BUILDING CONTRACTS AWARDED FREIGHT CAR LOADINGS PHILADELPHIA FEDERAL RESERVE DISTRICT ALLEGHENY DISTRICT MILLIONS 192 3-2S AVG.= I00 RESIDENTIAL NON-RESIDENTIALPUBLIC WORKS AND UTILITIES MERCHANDI $E AND MISCELL WEOUS (64.9* r total) COAL ^>3 571 or TOTAL 1933 Source: F. W. Dodge Corporation. tracts for all types of construction in the first ten months this year was 59 per cent greater than in the same pe riod last year, owing in part to ex ceptionally large increases in the con struction activity of public works and utilities, although the erection of educa tional buildings, apartments and hotels also registered substantial percentage gains. The cost of contemplated construc tion under building permits issued in seventeen cities of this district de creased considerably in October, after rising sharply in the previous month, but has continued 18 per cent larger than last year. As in the case of actual contract awards, the total amount of permits for new construction has been extremely small in comparison with the years prior to 1931. Agriculture. Farm activity in this district on the whole has been up to normal with respect to plowing, plant ing and harvesting of late crops. About the same area has been allotted to winter wheat this year as last and the quality of this crop so far seems to be either better or equal to that of a year ago. The yield of corn and potatoes is larger while that of tobacco is smaller this year than last, according to the latest estimate of the Depart ment of Agriculture. Prices of com mercial crops sold by local farmers this year have been substantially higher than those in the past two years. The condition of livestock on the whole appears to compare well with that normally prevailing during Octo ber and November. No unusual in crease in the slaughtering of hogs is reported, and the number marketed this fall seems to have been smaller than last year. Dairy activity has been somewhat more satisfactory this year than last, and prices of dairy products 1934 1935 1929 o 1 1932 1 TOTAL SEASONAL VAf IATION 1930 1931 1932 1933 1934 Source: American Railway Association. in Pennsylvania have increased very tomary level of activity seemed well sharply since the spring of 1933; the maintained. Dollar sales were 15 per cent larger October index number of prices was 111 per cent of the 1910-1914 average than in October 1933. Sales in the as compared with 54 in April last year. first ten months this year were 19 per The value of poultry shipped from cent larger than in the same period Pennsylvania to four eastern markets last year, all lines sharing in these has been smaller this year than last, gains. These comparisons continue to even though poultry prices have in reflect the influence of higher prices, creased almost steadily and are notice although lately wholesale commodity ably higher than in 1933. The value prices registered no unusual swings. of eggs marketed so far this year has The value of retail trade sales by exceeded materially that of last year, department, apparel, shoe and credit reflecting in part higher prices. Avail stores increased 23 per cent from Sep able current information thus indicates tember to October but this rate of gain that the farm income from crops, live was not quite as large as is normally stock, and livestock products has been anticipated at this season. Preliminary more satisfactory this year than in the reports indicated marked seasonal in creases in sales during November. past two years. Compared with a year ago dollar sales Distribution, trade and service. Deliv eries of all commodities by railroad were 7 per cent larger and for the year freight in this section during October to date 10 per cent greater than in the declined by a somewhat larger amount first ten months last year. than usual, although the shipment of Collections during October in rela merchandise generally maintained the tion to outstanding customers’ bal normal seasonal level while that of ances at the beginning of that month coal failed to increase as much as is showed an improvement of about 4 expected at this time. There is evi per cent at both retail and wholesale. dence that deliveries of merchandise The ratios of collections to receivables by motor freight companies have ex panded further, a usual development also have continued substantially at this season. Freight car loadings higher than a year ago. The value in the Philadelphia industrial area dur of merchandise stocks at retail in ing October showed marked increases creased by a smaller amount than in addition to those reported for Sep usual, while at wholesale the gain was tember, following a steady decline about one per cent greater than cus between April and August. While com tomary ; compared with a year ago the parisons with October 1933 again ap value of stocks at the end of October pear to be unfavorable, the tonnage of in the case of wholesale establishments freight loadings in this section for the was 12 per cent larger, while at re year to date has been about 7 per cent tail stores the supply of merchandise larger than a year ago. was virtually unchanged. The rate Total sales by eight wholesale lines of stock turnover was 3 per cent combined were 2 per cent larger in higher in retail and 8 per cent higher October than in September, more than in wholesale in the first ten months the usual seasonal increases occurring this year than last. in the sale of groceries, hardware and The number of new passenger auto jewelry. In early November the cus mobiles registered during October was Page Five 12 per cent smaller than in September, but this decline was not as sharp as usual so that there appears to have been an improvement in sales to the ex tent of about 3 per cent. Our seasonally adjusted index number was 71 per cent of the 1923-25 average, showing a de cline of 9 per cent from a year ago. But for the year to date there were 11 per cent more cars sold than in the same period last year. Sales of ordinary life insurance showed considerable increase in Octo ber, exceeding the normal seasonal gain by 3 per cent. They also have continued approximately 6 per cent larger than last year and 8 per cent above the average volume in 1923-25. Commercial hotels reported marked additional gains during October in both room occupancy and total rev enue derived from guest rooms, food and other sources. Their volume of income from these sources has contin ued about 24 per cent larger this year than last, reflecting primarily in creased activity of business travelers. Per cent change Hotel business Philadelphia Federal Reserve District Room occupancy............... Per cent of capacity used: Oct. 1934.............. 52.2 Sept. 1934........... 46.8 Oct. 1933........... 44.1 Revenue from: Guest rooms.................... Food.................................. Other sources.................. Total revenue............. Oct. 1934 from Sept. 1934 Oct. 1933 — 0 +11 — 0 +18 1934 10 mos. 1933 +15 +12 +28 + 19 +18 +10 +76 +14 +17 +65 +18 +24 +24 Banking conditions. The reserve bal ances of member banks remain sub stantially in excess of requirements despite a decrease in recent weeks. Commercial loans have declined; this is not an unusual development as the fall season advances, although an in crease was recorded in the correspond ing period last year. The Treasury withdrew 16 millions from depositary banks in this district during the five weeks ending on No vember 21, nevertheless total receipts here were 12y2 millions below local disbursements, necessitating transfers from other sections. This local dis tribution of funds, although augmented by 3 millions released through a de cline in nonmember deposits at the reserve bank, fell substantially short of the amount required to care for an ad verse balance of payments of 22)4 mil lions, chiefly in commercial and finan cial transactions with other districts, a rise in currency demand, so that Digitized and for FRASER http://fraser.stlouisfed.org/ Page Six Federal Reserve Bank of St. Louis reserve deposits of member banks de clined 7 millions. Discounts for banks declined to a total of less than one million, but in dustrial advances and reserve bank float increased, with the result that the total of reserve bank credit ex tended locally changed little. The re serve ratio of the bank decreased from 67.2 to 65.7 per cent, but compared favorably with 60.6 per cent reported a year ago. Loans and commitments approved by this bank for the purpose of provid ing working capital for established in dustrial and commercial businesses to taled $3,686,000 on November 21 as against $2,240,000 four weeks earlier. Advances actually made increased from $261,000 to $996,000. In the last five weeks the reporting member banks have added 3 millions to their loans to the open market, while loans on securities to customers have declined 2 millions and other loans, which probably are most typical of advances to commerce and business, show a drop of 9 millions despite a small rise in the latest week. There was a decline in holdings of invest ments; a rise of 16 millions in obliga tions fully guaranteed by the United States Government, which was due in Reporting member banks (000,000’s omitted) Nov. 21, 1934 Loans on securities: To brokers and dealers in N. Y. City.............. To brokers and dealers elsewhere...................... To others.......................... Oct. 17, 1934 Nov. 22, 1933 part to exchange transactions, was more than balanced by a reduction in other classes of investments. Demand deposits of customers rose substan tially, but decreases in funds held for other banks and a material expansion in amounts due from banks > were off setting factors so that net demand de posits changed little. Time deposits declined 2 millions and 12 millions was withdrawn by the Government to meet expenditures. In comparison with a year ago net demand deposits are 130 millions higher, while Government deposits at the reporting banks have decreased 40 millions. Loans to customers show a decline, chiefly in those having stock or bond collateral, while investments and loans to the open market together have increased 47 millions and reserve balances at the Federal Reserve Bank, 55 millions. Average reserve balances of mem ber banks in this district increased from 190 millions in September to nearly 198 millions in October and the amount in excess of legal require ments rose from 71 to 76)4 millions, comparing with 24)4 millions a year ago. The average excess in October in the case of Philadelphia banks was 47 millions, as against 69 millions in July, but that of country banks—29)4 millions—was approximately the same as in the summer. Federal Reserve % 17 $ 16 $ 7 15 171 15 173* 13 220 Total loans on securities.. $ Acceptances and commercial paper..................... Loans on real estate.......... Other loans.......................... 203 $ 204* $ 240 21 73 175 19 73* 184* / 13 255 Total loans.................. $ U. S. Government securities................................. Obligations fully guaranteed by U. S. Government.................................. Other securities.................. 472 $ 480 $ 508 277 291 300 32 263 16 270 243 Total loans and investments.................... $1,044 $1,057 $1,051 Net demand deposits........ 693 694 563 Time deposits...................... 312 314 311 Government deposits........ 41 53 81 Due from banks................. 155 79 139 Due to banks...................... 234 242 147 Reserve with Federal Reserve Bank...................... 129 129 74 Philadelphia (In millions of dollars) Changes in— 21, 1934 Bills discounted. . . $ 0.8 Bills bought............ 0.6 Industrial advances 1.0 U. S. securities. . . . 167.1 Other securities.. .. 0 Foreign loans on gold................... i.i Total bills and securities......... *170.6 Fed. res. note cir culation ................ 237.0 Fed. res. bank note circulation—net. 0 Member bank re serve deposits. . . 199.8 U. S. Treasurer— 1.6 general account.. Foreign bank de posits .................... 0.9 Other deposits........ 3.3 Total reserves........ 290.8 Reserve ratio.......... 65.7% Five weeks One year t 1.5 0.0 0.8 0 0.3 — -$24.6 - 1.1 + 1.0 0 — 0.5 + + — + 1.1 +* 0.1 i.i -$24.1 3.9 + 0 - 15.4 _ 7.3 + 75.0 + 0.5 + _ + 0.1 — 2.9 — 15.9 1.5% 7.4 0.6 + 0.2 — 7.2 + 68.7 + 5.1% * Revised. RESERVE BANK CREDIT AND THE FACTORS THAT AFFECT IT Philadelphia Federal Reserve District October 18 to November 21 inclusive—in millions of dollars Sources of funds Reserve bank credit extended in this dis trict................................................................... — 0.1 Commercial and financial transfers (chiefly interdistrict).................................................... —22.6 Treasury operations.......................................... +12.6 Uses of funds Currency demand............................................ Member bank reserve deposits.................... Nonmember deposits at reserve bank. ... Unexpended capital funds of reserve bank +1.3 —7.3 —2.9 —1.2 Total...........................................................-10.1 Total............................................................. -10.1 Note: This table gives, in balance sheet form, a summary of the banking changes which have had an influence on the amount of reserve bank credit in use in this district. Employment and Payrolls in Pennsylvania FEDERAL RESERVE BANK OF PHILADELPHIA MILLIONS (All figures are rounded from original data.) Manufacturing Indexes MEMBER BANKS’ RESERVE DEPOSITS' Employment* (Indexes are percentages of the 1923-25 average taken as 100. Total and group indexes are weight ed proportionately.) Oct. 1934 index BILLS DISCOUNTED 1932 1933 1934 LOANS TO CUSTOMERS REPORTING MEMBER BANKS PHILA. FED. RES. DISTRICT MILLIONS SECURED BY STOCKS AND BONDS All manufacturing___ Iron, steel and prods... . Non-fer. metal prods... . Transportation equip.... Textiles and clothing... Textiles.......................... Clothing........................ Food products................. Stone, clay and glass. . . Lumber products............ Chemicals and prods... . Leather and products.. . Paper and printing......... Printing......................... Others: Cigars and tobacco.. . Rubber tires, goods... Musical instruments.. 76 64 85 52 95 93 106 119 73 48 91 87 89 85 Employehoursf Payrolls* Per cent change from Per cent Oct. change from 1934 index Oct. Sept. Oct. Sept. 1933 1934 1933 1934 Oct. 1934 per cent change from Oct. 1933 Sept. 1934 — 1 + 0 - 1 — 4 — 4 — 4 - 4 + 13 - 2 -23 + 6 - 5 - 1 — 1 + 2 - 1 + 1 - 0 + » + 12 + U + 3 + 1 - 2 - 0 - 3 +1 + i 56 47 69 34 82 81 85 97 38 34 72 73 76 77 + 2 + 7 - 5 + 7 + 4 + 4 - 7 + 6 + 3 + 4 - 2 + 5 - 8 + 4 + 4 + 3 — 1 +22 - 7 +20 +1 +24 - 7 +24 -10 +10 - 7 + 6 +18 + 2 +19 + 3 + K + 7 + 5 + 7 -21 - 2 -21 0 + 7 — 0 — 6 + 2 - 7 - 4 — 12 + 0 + 7 + 4 - 0 + 4 + 6 + 3 — 4 + 2 70 +n 79 — 20 49 +20 +1 +1 + 8 52 62 42 + 16 -20 + 9 * Figures from 2011 plants. + 1 -10 + 8 -27 + 8 - 1 + 0 + 7 + 9 f Figures from 1790 plants. Indexes of Twelve Occupations ALL OTHER Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) 1933 1934 General index Percentage change—October 1934 from October 1933 City areas* Allentown............. Altoona................. Harrisburg............ Johnstown............ Lancaster............. Philadelphia......... Reading................ Scranton............... Trenton................. Wilkes-Barre.... Wilmington.......... York...................... Manufacturing Employ ment Wage payments +17 - 6 +12 + 6 — 2 — 3 - 0 — 5 - 8 -12 — 7 — 1 — 3 +20 + 0 +23 + 5 + 0 + 1 + 4 + 4 - 8 - 0 — 0 + 4 + o Building permits (value) + 38 — 42 - 13 - 50 +in + 61 + 134 — 51 - 49 — 20 + 91 + 81 +209 Debits + 2 — 3 + 2 — 4 +17 +14 + 7 +40 -10 + 2 +22 + 3 Retail trade sales +18 + 2 + 8 + 7 + 6 — 3 + 6 (weighted)___ Manufacturing............................. Anthracite mining...................... Bituminous coal mining............ Building and construction........ Quarrying and non-met. mining Crude petroleum producing. . . Public utilities.............................. Retail trade................................... Wholesale trade........................... Hotels............................................. Laundries....................................... Dyeing and cleaning.................. Oct. 1934 index 109 118 94 121 84 115 160 90 110 104 109 95 101 Per cent change from Oct. 1933 Sept. 1934 - 0 — 1 + 3 +50 — 13 •— 1 -20 — 1 — 5 + 2 +12 - 0 -11 +2 +2 +3 -0 -0 -6 -5 +0 +4 +0 -0 -1 +1 Payrolls Oct. 1934 index 120 139 90 158 75 139 145 90 108 98 104 91 110 Per cent change from Oct. 1933 Sept. 1934 + 3 + 6 + 7 + 3 +12 + 4 + 2 - 3 + 1 + 4 + 1 + 2 — 0 + 3 + 2 - 22 +114 - 7 + 8 - 14 + 4 — 1 + 2 + 22 + 1 — 9 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT — 1 + 4 October 1934 from September 1934 EMPLOYMENT Allentown............. Altoona................. Harrisburg........... Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre.... Wilmington.......... York...................... + + + + + + — + + + + 3 2 3 4 2 3 0 3 1 1 1 2 o + 12 + 6 + o - 5 +1 + « + 6 + 3 + 6 + 16 + 6 + 5 + 3 + 38 - 65 + i - 72 + 20 + 24 - 84 — 55 - 79 - 63 +173 + 68 +545 +19 — 4 + 6 + « + 16 +18 +21 +12 +15 + 0 +15 + 4 +11 +28 + 8 +18 +17 +28 +20 - 3 +14 +18 PAYROLLS +23 1932 193 3 1934 * Area not restricted to the corporate limits of cities given here. Page Seven Index numbers of individual lines of trade and manufacture RETAIL TRADE Philadelphia Federal Reserve District PHILADELPHIA FEDERAL RESERVE DISTRICT Index numbers: percentages of the 1923-1925 average taken as 100 Adjusted for seasonal variation Not adjusted Adjusted indexes allow for the usual (All figures are rounded from original data) seasonal change which results from an uneven distribution of business be tween the months of the year. Percentage com parison Unadjusted indexes reflect merely the actual change which may or may not be up to the usual seasonal expecta Oct. Aug. Sept Oct. Oct. 1934 Oct. Aug Sept. Oct. 1934 1933 1934 1934 1934 with tions. 1933 1934 1934 1934 with 10 Month Year mos. 1933 ago ago DEPARTMENT STORES Retail trade Sales Total of all stores. . Department......... Men’s apparel. . . Women’s apparel Shoe....................... Credit.................... 63 61 56 82 67 59 62 69 63 66 55 58 92 103 52 83 51 58 67p 64p 61 87 71 66 — 2 - 3 + 6 — 16 -15 + 14 + 7 + 5 + 10 + 6 + 6 + 12 61 58 55 91 56 64 62 54 55 94 61 71 61p 54 p 63 83 56 69 — 4 - 1 +12 — 10 - 2 -11 _ 0 — 7 + 13 — 9 — 0 + 8 + + + + + + 10 9 17 9 8 18 71 70 56 92 66 72 49 48 45 62 42 48 62 59 50 89 77 55 76p 73p 62 97 70 81 MEN’S APPAREL STORES Stocks of goods Total of all stores. . Department......... Men’s apparel. . . Women’s apparel Shoe....................... Credit.................... 64 54 56 93 57 78 Rate of stock turnover 10 months (actual, not indexes) 68 65 59 115 60 68 + 3* 59 67 68p 50 56 61p 57 61 67 83 100 105 60 60 60 70 80 73 2.98 3.07 WOMEN'S APPAREL STORES Wholesale trade Sales Total of all lines........................... Boots and shoes....................... Drugs.......................................... Dry goods.................................. Electrical supplies................... Groceries.................................... Hardware................................... Jewelry....................................... Paper........................................... 64 78 72 73p 34 49 39 37p 84 84 89 87 34 42 37 35 50 86 59 56p 93 112 109 113 41 45 43 46 34 35 32 48 59 62 61 61 Stocks of goods Total of all lines............................ 61 67 68 68 Boots and shoes......................... 25 22 24 22 Drugs............................................ 110 108 116 113 Dry goods.................................... 38 45 46 48 Electrical supplies..................... 56 75 78 76 Groceries...................................... 75 85 82 84 Hardware..................................... 64 65 65 63 Jewelry.. . .................................... 46 48 53 56 Paper............................................. 61 57 56 55 + 2 — 4 - 1 - 5 - 6 + 3 + 6 +52 + 0 + — — + + + - + + + + + + + + + 15 8 3 2 12 21 12 44 4 + + + + + + + + + 19 72 2 43 12 83 16 46 26 64 21 101 21 47 31 45 15 63 1 + 12 9 — 12 2 + 3 4 + 25 3 + 34 3 + 13 2 — 1 4 + 22 2 — 10 Rate of stock turnover 10 months (actual, not indexes). 64 25 113 40 63 80 61 48 62 « 4- 8* 74 82 83p 56 56 46p 86 78 91 39 49 47 71 71 72p 109 121 123 40 46 52 31 39 65 58 62 65 67 71 72 24 25 22 112 120 117 48 51 51 80 83 85 79 82 90 64 63 60 53 58 58 58 57 56 4.41 4 75 Output of manufactures Pig iron.................................................. Steel........................................................ Iron castings........................................ Steel castings....................................... Electrical apparatus.......................... Motor vehicles.................................... Automobile parts and bodies......... Locomotives and cars....................... Shipbuilding......................................... Silk manufactures.............................. W oolen 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 t................................................... Paper and wood pulp........................ Printing and publishing................... Shoes...................................................... Leather, goat and kid....................... Explosives............................................. Paints and varnishes......................... Petroleum products........................... Coke, by-product............................... 20 24 22 16 48 48 43 45 48 50 52 48 40 67 62 38 70 73 73 80 23 19 24 11 37 36 40 51 15 28 25 21 120 116 118 115 100 94 65 88 54 38 26 43 42 38 30 35 53 62 41 57 102 89 102 101 105 107 95 109 18 40 45 29 30 29 26 28 20 16 17 18 97 106 40 75 60 84 129 109 64 59 139 78 104 98 91 46 55 50 89 88 58 59 82 81 132 123 103 98 81 67 64 64 132 L37 70 -25 + 4 - 7 -39 + 9 +29 +n -16 - 3 +36 +66 +16 +41 - 1 +14 -35 + 7 + 5 — 2* 102 + 4 85 +86 43p -13 90 + i 61 + 4 - 0 81 112 - 9 92p - 6 69 + 4 60 - 6 134p - 2 65p - 7 * Computed from data unadjusted for seasonal variation. DigitizedPage for FRASER Eight 19 6 1 4 + 14 + 125 — 20 + 40 — 5 — 12 — 20 — 19 + 7 1 + 4 + 64 6 — 11 + 6* + 5 — 20 + 7 + 19 + 2 4 — 13 — 16 + 7 + 3 3 17 — + + 42 + 30 + 42 +101 + 40 + 25 + 28 + 95 + 29 — 12 — 31 — 7 + 7 5 — 30 + 24 1 + 9 3* + 5 + 1 + 48 + 9 + 2 2 — 1 + 4 + 40 + 5 + 1 + 18 p—Preliminary. 20 48 51 38 77 10 48 14 115 102 59 44 59 L13 114 20 30 21 82 102 89 54 92 61 85 140 113 65 63 L40 77 21 49 48 65 81 19 35 29 115 92 39 34 57 78 100 50 30 18 87 89 79 59 95 58 79 141 99 81 65 132 68 20 41 52 57 80 16 35 24 112 65 28 29 44 102 95 52 26 18 89 100 39 65 103 59 80 140 102 67 61 138 67 16 51 36 87 22 38 20 110 89 47 36 66 111 118 33 28 18 87 107 72 64p 110 62 82 121 95p 70 64 135p 64p CREDIT STORES 1031 1032 1033 1934
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