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THE BUSINESS REVIEW r' - > When by thi Library THIRD FEDERAL PHILADELPHIA i|tialed indicated. RESERVE DISTRICT DECEMBER i, 1936 FEDERAL RESERVE BANK OF PHILADELPHIA □ Stewart., Business and Banking Conditions in the United States * I I Volume of industrial production in creased seasonally in October and there was a substantial rise in employ ment and payrolls. Prices of a number of industrial raw materials and finished products have advanced. Production and employment. In Oc tober the Board’s seasonally adjusted index of industrial production was at 109 per cent of the 1923-1925 average, about the level of the three preceding months. Steel production was in larger volume than in any other month since 1929, and the rate of activity was sustained in the first three weeks of No vember. Output of automobiles rose sharply from September to October. The increase in this period was less than a year ago, reflecting the fact that this year the date of the shift to production of new models was less uni form among the leading producers, but in the first three weeks of November production increased further and was larger than last year. Activity at textile mills, which usually increases in October, declined slightly from the high level of September. In the meat packing industry output showed a fur ther increase. Coal production in INDUSTRIAL PRODUCTION Index of physical volume of production, ad justed for seasonal variation. creased seasonally and production of crude petroleum continued at recent high levels. Factory employment increased by more than the usual seasonal amount between the middle of September and the middle of October. Increases in employment were general among the durable goods industries, with the largest expansion reported at factories producing automobiles and machinery, while changes in employment in the non-durable goods industries were largely of a seasonal character. Fac tory payrolls rose by considerably more than the usual seasonal amount. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, was slightly smaller in October than in Septem ber, with a decline in publicly-owned projects partly offset in the total by an increase in awards for private nonresidential construction. Distribution. Sales by department stores and by mail order houses serv ing rural areas increased from Sep tember to October by a larger amount than is usual at this season. Variety DEPARTMENT STORE SALES Indexes of value of sales. store sales showed a less than sea sonal rise. Freight-car loadings in creased further in October, reflecting chiefly a larger volume of shipments of miscellaneous freight and of coal. Commodity prices. The general level of wholesale commodity prices ad vanced somewhat during the first three weeks of November, following two and a half months of little change. Since the middle of October prices of a num ber of industrial raw materials, par ticularly nonferrous metals, hides, rub ber, silk, and wool, have shown a considerable rise and there have also MEMBER BANK RESERVE BALANCES Wednesday figures of total member bank re serve balances at Federal Reserve banks, with estimates of required and excess reserves, January 6, 1932 to November 18, 1936. WHOLESALE PRICES Indexes compiled by the United States Bureau of Labor Statistics. By months, 1929 to 1931; by weeks, 1932 to date. Latest figure is for week ending November 21, 1936. which became effective in the middle of August. Adjusted demand deposits at weekly reporting member banks in leading cities have continued to increase, and on November 18 amounted to about $15,400,000,000. Since the end of last May these deposits have increased by over $800,000,000, reflecting a rise in deposits outside New York City. Time deposits at reporting banks have re mained at about the $5,000,000,000 level. been substantial increases in the prices of some finished products, including automobile tires, glass, woolen goods, and cotton goods. Bank credit. Member bank reserves increased in the four weeks ended No vember 18, chiefly as the result of transfers of gold to the United States. On that date member bank reserves were $2,270,000,000 larger than legal requirements, the highest level since the increase in reserve requirements Holdings of United States govern ment obligations at reporting banks have recently declined somewhat fur ther. Since the end of June the decline has amounted to about $300,000,000 and has been at New York City, with little change elsewhere. Holdings of other securities have declined in re cent weeks, reflecting chiefly a reduc tion in the amount held by New York City banks. Loans to customers have shown some further increase. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial conditions in the Philadel phia Federal Reserve District have continued to reflect steady improve ment. Production and employment in October reached the highest level since 1930. Output of manufactures, coal and crude oil combined was 89 per cent of the 1923-25 average as compared with 77 a year ago; the trend has been almost steadily upward since early 1933. The value of contracts awarded for construction declined from September to October, except in the case of house building, but the volume continues sub stantially above last year. Operations on contracts awarded this year ex panded further during the month. The agricultural situation continues favorable and income from sales of crops and animal products has been larger than in previous years, reflecting in part the influence of higher prices. Prices of commodities, agricultural as well as industrial, have increased dur ing the month ending November 21. Retail trade sales did not increase as much as they usually do from Septem ber to October but gains over last year continued well maintained into Novem ber. Sales at wholesale establishments, while declining slightly during the month, also were appreciably larger than last year. Some improvement oc curred in the sale of ordinary life in surance. Sales of new passenger auto mobiles showed additional decreases in the month, but the total for the year is still substantially larger than last year. Shipments of commodities by rail and truck have increased somewhat. General employment, as measured by our index number covering 12 branches of trade and industry in Pennsylvania, increased 2 per cent and payrolls 7 per cent from the middle of September to the middle of October. The employ ment index expressed in the percent age of the 1932 average was 121, or 8 per cent higher than in October 1935. The payroll index was 169, or 21 per cent higher than a year ago. Early figures for November indicate that this level has been either maintained or in creased by greater activity in trade, services, and in certain lines of manu facturing. Manufacturing. Demand for products manufactured in this district has con tinued active and has been running substantially ahead of last year. The volume of unfilled orders appears much larger than a month ago or at the same time for several years. Ship ments of manufactures by railroad freight have been maintained at ap proximately the same level for two successive months and the expansion this year has been quite pronounced, reaching in August the highest point in the past four years. Deliveries by motor trucks also have been increas ing. The movement of goods by water to and from the Port of Philadelphia, extending from Trenton to the sea, also showed considerable gains over last year, although recently shipping has been greatly interrupted by the strike of coastwise longshoremen and seamen. The supply of finished manufactures at reporting plants appears to be the smallest in several years, except for certain lines particularly in the con sumers’ goods groups. Purchases of raw materials in various stages, on the INDUSTRIAL PRODUCTION PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT CRUDE OIL(BRADFORD field) FARM CASH INCOME (pa, n. j., and del. ) MANUFACTURING INDUSTRIAL PAYROLLS 193 1 1932 Page Two 1933 1934 1935 936 1933 1934 1935 1936 1937 other hand, have been increasing as is to be expected in a period of sustained or improving business. The latest re port from the Department of Com merce also indicates a further decline in the stocks of finished goods and an almost steady decrease this year in the country’s supply of raw materials, reflecting chiefly active demand by the producers of finished goods. Cooperating concerns almost uni formly report further advances in prices for most of their products. The index number of the Bureau of Labor Statistics covering prices of all com modities, excluding farm products and foods, on November 21 was 81 per cent of the 1926 average as compared with 80 a month ago and 79 a year before. The depression low was about 65 in the spring of 1933. The number of factory wage earners and their payrolls showed additional increases from the middle of Septem ber to the middle of October, and early reports for November indicate that the seasonal volume was more than main tained at the usual rate for that period. The index number of employment computed for this district reached al most 88, relative to the 1923-25 aver age, and the payroll index rose to 86, both being the highest since 1930. Estimates for Pennsylvania indicate that the number of factory wage earn ers in October approximated 945,000 and the amount of their wages averaged about $22,344,000 a week. These fig ures represent gains of 10 per cent in employment and almost 24 per cent in payrolls over last year. The sharpest relative increases occurred in indus tries producing durable goods includ ing iron and steel products and trans portation equipment. Reports from Delaware factories showed declines in employment, pay rolls and working time from September to October, reflecting largely seasonal recessions in the canning industry. Compared with a year ago, the number of wage earners employed in October was 14 per cent larger and their com pensation was 24 per cent greater. Conditions in southern New Jersey also reflect the usual seasonal drop in activity of the canning and preserv ing industry, so that factory employ ment showed a slight decline in October but wage payments were 5 per cent greater than in September, owing largely to increased activity in indus tries other than those concerned with food preparation. The volume of em ployment and wages continued the Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Not adjusted Adjusted for seasonal variation seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not be typical. Per cent change Oct. 1936 fre m Oct. Aug. Sept. Oct. 1935 1936 1936 1936 Month Year ago ago Industrial production....................... Manufacturing—total............................ Metal products..................................... Textile products.................................. Transportation equipment............ Food products....................................... Tobacco and products..................... Building materials.............................. Chemicals and products.................. Leather and products....................... Paper and printing............................. Coal mining................................................. Anthracite............................................... Bituminous............................................. Crude oil....................................................... Electric power Output...................................................... Sales, total!............................................ Sales to industries!............................ Employment and wages—Pa. 77 76 62 88 69 90 58 67 92 34 104 118 82 49 48 61 390 203 198 144 89p 89p + o + i + 16 + 17 38 + 12 + 14 81 80 88 88 91 90 94p 93p 87 99 80 77 95 42 117 135 85 50 47 76 430 92p 94 92p 91 72p 99 47 116p 124p 93 5lp 48p 78 459 -1- 1 - 0 +15 - 5 + o + 8 - 5 - 6 + 7 -13 -14 - 2 - 0 + + + + + + + + + + 38 2 56 9 7 36 11 5 13 4 0 29 + 18 + + 32 0 + 72 + 8 + 9 + 32 + 11 + 2 + 5 1 2 + 16 + 10 71 94 56 69 113 36 106 125 83 62 62 65 390 91 93 78 78 102 48 118 137 83 50 47 72 443 93 94 75r 80 114 47 r 121 145 86 60 57 81 461 97 95p 87 79p 121 50 118p 132p 94 64p 62p 84 459 234 227 167 235 229 166 232 231 173 + + 15 + 17 + 20 + 13 + 14 + 26 209 198 140 222 216 172 230 227 176 239 231 168 28* 26* 79 70 71 85 87 82 86 88 87 91 21* 112 17* 139 154 118 158 121 169 + 112 + 100 + 113 + 124 + 97 _ 12 30 36 21 33 86 11 54 606 63 40 63 126 22 25 494 68 49 63 130 13 21 732 60 49 52 108 19 34 262 11 80 74 87 70 97 54 116 119 65 66 65 64 74 75 63 79 77 98 73 83 89 124 115 80 80 71 94 81 96p /6p 95 68 141p 153p 80 78 78 51 r 20 18 42 19 79 75 85 91 73 74 75 32 78 1 o + 5 + 6* + 7* Building and real estate 62 43 62 11.5 24 28 515 69 54 64 141 15 23 631 59 50 54 111 18 32 525 -15 - 8 -16 -22 +25 +40 -17 66 +129 + 60 + 25 + 73 37 57 70 67 76 67 106 66 80 70 87 68 100 112 88 73 86 70 103 92 83 73 84 p 73p 104 83 - 5 + + 60 61 57 70 72 65 71 71 68 73 73 69 Distribution Retail trade—sales.................................. Wholesale trade—sales.................... Life insurance sales.................. New passenger auto, registrations . Hotels—Occupancy................................ Freight car loadings—total................ Merchandise and miscellaneous . Coal............................................................ - 2 + 1 -10 + + + + + + 77 88 90 88 29 72 32 74 31 76 32 77 2 1 6* - 2 19 11 2 25 22 19 21 _ + + + + + + 62* + 15 9 7 27 17 17 7 47* + 8 +1 + United States Wholesale _ + 2 Payment of accounts Prices + + Business liquidations Check payments....................................... Rate of collections (actual) Oct. Aug. Sept. Oct. 1935 1936 1936 1936 89 88 82 93 93 92 80 76 99 43 122 133 87 59 56 80 461 88 88 78 General (1932=100) Employment.......................................... Payrolls.................................................... Contracts awarded!—total................ 35 Residential!................................... 22 Non-residential!.................................. 34 Public works and utilities!........... 89 Permits for building—17 cities. . . . 10 Real estate deeds—-Philadelphia. . 52 Writs for Sheriff sales—Phila............ 1212 1936 from 10 mos. 1935 82 84 124 (1926=100).................... 82 3* _|_ 2* 4i* 41* + Retatl food............................................................... Philadelphia........................................... Scranton................................................... + 3* 1-1* 3* 3* + 84 78 81 80 81 84 83 80 83 85 80 % change from (In millions of dollars) July Aug. Sept. Oct. 1936 1935 1936 1936 1936 Month ago Year ago 214 406 73.3 - 1 +15 + 3 +16 +55 + 2 417 764 1,491 12.7 - 1 + o + 4 -hi + 4 +10 +13 -10 Banking and credit Federal Reserve Bank Bills discounted.................................... $ (a) Other bills and securities............. 184 Member bank reserves..................... 262 Reserve ratio (per cent).................. 72.1 Reporting member banks Loans to customers............................ $ 402 Other loans and investments.... 695 Total deposits (adjusted)............... 1,319 Bankers’ acceptances outstanding. 14.1 $ (a) $ 217 316 69.9 $ 419 770 1,423 il.3 (a) $ 217 320 69.6 * 421 767 1 ,412 12.3 * Computed from data unadjusted for seasonal variation. t 3-month moving daily average centered at 3rd month. (a) Less than $500,000. (a) $ 217 354 71.0 $ 423 762 1,433 11.4 $ (a) p—Preliminary. r—Revised, J Not included in production index1, Page Three METAL PRODUCTS-EMPLOYE HOURS WORKED OUTPUT OF TEXTILE GOODS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT STEEL WORKS- - - - - - AND ROLLING MILLS WOOLENS AND V ” WORSTEDS V FOUNDRIES AND MACHINE SHOPS COTTON 1932 1933 1934 largest for several years as in the case of other parts of the district. Output of factory products in this district during October increased slightly, continuing the steady upward trend since the fall of 1934, barring two minor declines. Our adjusted index of productive activity rose to 89 per cent of the 1923-25 average from 88 in the previous three months; in Oc tober last year this index was 76, or about 14 per cent lower than at pres ent. The depression low reached in 1932-33 was around 54. As was the case in the previous months, the sharpest gains occurred in industries producing durable goods. The gain in the output of this group as a whole has been almost continuous and the total for the year to date is about 35 per cent larger than in the same period last year. The demand for durable and semi-durable products has been expanding at a considerable pace during the past seven months and cur rent purchases appear to continue in substantial volume. The trend of prices is decidedly upward, reflecting largely increasing costs of raw mate rials and labor. Productive activity of industries producing consumers’ goods generally barely maintained the normal seasonal level between September and October but the average rate of activity was 5 per cent higher than a year ago. In the case of textiles, production of silk, wool and cotton goods increased while the output of carpets and rugs, hosiery and underwear either decreased or was not up to the expected change from September to October. Recessions in the output of shoes and leather were more pronounced than usual, though in the case of shoes production con tinued noticeably larger than a year ago. Prices of foods, textile products, Page Four 1935 1936 1931 hides and leather, and housefurnishing goods have shown a rising tendency in sympathy with advances in the raw material markets. Output of electric power has con tinued at a record level despite a slight decline during October. Total sales of electricity have been well main tained. Industrial consumption of elec trical energy declined from September to October by a smaller quantity than usual so that the adjusted index rose to the highest point in thirteen years except for two months in 1929. Coal and other fuels. Production of anthracite showed less than the cus tomary rate of gain from September to October and declined seasonally in early November, according to pre liminary reports. Shipments during October registered a further substantial increase and were 9 per cent larger than a year before. In the first ten months this year anthracite output was 2 per cent smaller while shipments were 3 per cent greater than in the same interval of 1935. Bituminous coal production in Penn sylvania also failed to increase by as large a percentage as it ordinarily does in October. Compared with a year ago, however, the output of mines was 29 per cent greater and was the largest since 1930. In the first fortnight of November production continued at about the same level as in October. Car loadings of soft coal have shown a sharp upward trend since last June, reflecting in part an expanding demand for industrial fuel by manufacturers and other industrial consumers. For the year to date both output and ship ments have been substantially larger than in 1935 and have exceeded those of any like interval in several years. Production of bi-product coke about maintained its customary seasonal level 1932 1933 1934 1935 1936 in October, following substantial gains for two months previous. Output of gas and fuel oils in October was smaller than a month before. Com pared with a year ago, coke production was 33 per cent larger and that of gas and fuel oils was 34 per cent greater. (Output and shipment figures are daily averages) Anthracite Production...................tons Shipments.................... tons Stocks.................1000 tons Prices............ (1926—100) Employment................No. Bituminous Production...................tons Shipments...........No. cars Prices.............(1926-100) Employment................No. Prod____(1623-25=100) Prices............ (1926=100) Gas and fuel oil Prod____(1923-25=100) Prices............ (1926-100) Per cent change from October 1936 Month Year ago ago 163,600 167,765 2,347| 81.8 89,445 + 9 +12 +18 + 1 + 5 - 1 + « +10 - 1 -15 398,300 30,193 97.3 130,736 + 3 +10 + 0 + 2 +29 + 19 - 1 + 7 121.3 97.8 + 3 + 4 +33 +10 115.5* 68.3 - 8 + 3 +34 + 9 Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. t October 1. Awards of building con tracts in this district totaled approxi mately $11,770,000 in October, a de crease of 34 per cent from September but an increase of 30 per cent over a year ago. The decline in the month was of greater than seasonal proporBuilding. Per cent change Building contracts Philadelphia Federal Reserve District October 1936 (000’s From omitted) month ago Residential................................ $ 4,803 Apts, and hotels............... Family houses.................... Non-residential.................. Commercial.......................... Factories................................ Educational......................... All other................................ 1936 from 10 mos. 1935 -29 +100 214 4,589 -92 +16 +161 + 92 3,400 -37 - 0 +113 871 780 776 973 -32 -24 -59 + 63 + 30 +598 + 45 Total buildings............. S 8,203 -32 +108 3,566 -36 +124 Grand total..................... $11,769 -34 +112 Public works and utilities. Source: F. W. Dodge Corporation. OUTPUT OF SHOES AND HOSIERY PERCENT SALES OF ELECTRIC POWER PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT 1923 -25 AVG = 100 PERCENT 160 SHOES^ TOTAL 140 f J, V a 120 1 1 100 1 / ♦ It L\ \ /• • *1 u F*.L/: 1 w 80 1 1 aa ..A 1V / A *;: 1 J\ ” \] \ : \ : ** v /AV \7 y \V: v is *./: \‘ i T a *---- : •’ *< \ TO INDUSTRIES H DSIERY 60 40 ADJUSTED TOR SEASONAL VAHI AT ION 1931 1932 1933 1934 tions and reflected a substantial reduc tion in the value of contracts let for all types of construction other than family dwellings and commercial buildings. The dollar volume of all contract awards, while still below the level of the pre-depression years, was 112 per cent greater in the first ten months this year than last and was the largest for that interval since 1931. Contracts awarded for residential buildings, par ticularly one and two-family houses, have shown a sharp and almost con tinuous gain since February. Operations on contracts previously awarded increased further in October and were in larger volume than last year. Current reports show that the demand for building materials con tinues to be quite active for this season and that unfilled orders exceed those of a year ago. In recent months em ployment in plants producing building materials has been maintained at the highest levels since 1930. The October index of wage earners employed in seven industries of Pennsylvania manu facturing important materials used in building and construction stood at 72.1 per cent of the 1923-25 average or nearly 16 per cent higher than a year earlier. This compares with a depres sion low of 39.0 in early 1933. Latest reports indicate some shortage of skilled labor in certain building trades. Prices of building materials have in creased during the past three months. The Bureau of Labor index about the middle of November reached nearly 88 per cent of the 1926 average, after fluctuating around 85 in the earlier months of the year. A year ago this index was about 86. Agriculture. Estimated yields of late field crops including corn, tobacco and white potatoes have been revised up 1935 193 I ward since October 1, according to the Department of Agriculture. Indi cations now are that the harvest of corn, while smaller than a year ago, will compare favorably with the aver age for the five years 1931-1935. In the case of tobacco and white potatoes, production this year is expected to about equal this average and to be somewhat larger than in 1935. Output of several other important commercial crops, as well as that of certain ones used principally as feed for livestock, was substantially smaller this year than last. Higher prices for farm products generally more than offset the smaller yields. Cash income of farmers has con tinued to expand. Preliminary reports show that in the first nine months this year receipts from the sale of farm products in Pennsylvania, New Jersey and Delaware totaled $245,236,000. This figure represents a gain of 11 per cent over a year ago and an increase of 51 per cent as compared with the same interval of 1933, which was a record low year in point of farm cash income. In comparison with the January to September period of 1929, however, sales were still about 18 per cent smaller. Sales of farm products Penna.—N. J.— Del. 9 months Per cent change from 1936 (000’s omitted) 1935 1933 1929 Crops........................... $ 76,006 +33.4 +51.8 -12.7 Livestock and products................ 169,230 + 3.3 +50.9 -21.2 Total.................. $245,236 +11.1 +51.1 -18.7 Source: Bureau of Agricultural Economics. Distribution, trade and service. Dol lar sales by department, apparel, shoe and credit stores, computed on a daily basis, were 19 per cent greater in Oc tober this year than last. All lines 1932 1933 1934 1935 1936 shared in this gain, although the largest increases were reported by credit, shoe and men’s apparel stores. October sales by department stores in the dis trict as a whole were 13 per cent and at Philadelphia establishments 10 per cent larger than a year earlier. The value of retail trade sales in the aggre gate increased about 5 per cent less than it usually does in October, so that our seasonally adjusted index de clined to 83 per cent of the 1923-1925 average from 88 a month before. In the first ten months this year total dol lar sales exceeded those of a year ago by 11 per cent. The value of wholesale trade sales by eight important lines in October was 11 per cent larger than last year. Increases ranged from 35 per cent in the case of jewelry to 4 per cent in groceries. Compared with September combined dollar figures showed a de cline of about 2 per cent. Thus far this year total dollar sales have been 9 per cent greater than a year ago, owing in part to higher prices. Stocks of goods at retail stores showed about the customary rate of expansion from September to October but increased somewhat more than usual in wholesale lines. Compared with a year earlier they were 9 per cent larger in both channels of trade, reflecting partly increased prices and a greater volume of business. Collec tions were effected at a more rapid rate than a year ago. Sales of new passenger automobiles in this district decreased further dur ing October as was to be expected in view of the introduction of new models, which occurred in early November. Compared with a year ago, however, the number of new units sold was 25 per cent greater and exceeded that of Page Five any other October in the past five years. For the year to date sales have shown an increase of 27 per cent over 1935 and have been the largest since 1929, which was a peak year in point of both production and sales. Total freight car loadings in this sec tion have been well sustained since early fall at the highest levels since 1930. In the first ten months this year total shipments were 17 per cent greater than in the same period of 1935. The tonnage of rail freight, consisting largely of manufactures originating in the Philadelphia industrial area, de creased less than usual from September to October and continued substantially greater than in the past four years. Activity of commercial hotels showed a further sharp increase in October. Thus far this year room occupancy has been 11 per cent and total revenue 15 per cent larger than in the same interval of 1935. Details follow. Oct., per cent change from Hotel business Philadelphia Federal Reserve District Month Year ago ago Room occupancy....................... Per cent of capacity used: Oct. 1936.................. 64.6 Sept. 1936.................. 57.0 Oct. 1935................... 53.3 Income from: Guest rooms............................. Food............................................. Other sources.......................... + o + 14 + 0 +21 1936 from 10 mos. 1935 +n +24 +46 +37 +29 +24 +33 +13 + 14 + 16 +33 +28 continue very large, as the preceding ratios show. The principal factors contributing to the decrease in member bank reserve deposits over the last four weeks were the net outflow of 7 millions to other districts incident to commercial pay ments, a decline of 3 millions in reserve bank float, and a seasonal increase of 8 millions in currency demand which compared with 7 millions in the cor responding period last year. To assist in meeting its disbursements the Treasury withdrew 26 millions from deposits which banks had set up in payment for new issues of Govern ment securities; although such with drawals materially augmented local Treasury receipts, disbursements ex ceeded receipts by 2 millions. Federal Reserve Bank of Philadelphia (Dollar figures in millions) Bills discounted.... Bills bought................. Industrial advances. United States securi ties .......................... Nov. 18, 1936 (000,000’s omitted) One year - $0.1 - 0.2 - 1.9 209.0 0 + 31.9 +$0.1 +$29.7 + 5.4 + 38.9 -16.4 +130.8 + 0.7 - - 1.2 + 0.2 - 8.2 + 1.8 - 16.2 +132.6 + 3.3% $ Outside New York City. . Loans on securities to others (except banks).................. Acceptances and commer- Other loans..................................... Total loans...................... $ U. S. Government securities. Obligations fully guaranteed by U. S. Government. . Other securities........................... to the credit of members at the reserve bank have averaged over 400 millions during the past month. The highest point recorded in any weekly statement thus far was 420 millions on October 21st; despite the decline to 404 mil lions on November 18, reserves still materially exceed the levels in earlier months of the year. The extraordinary increase in the summer and early fall was largely reflected in the figures of member banks in Philadelphia, but sub stantial gains also were reported by banks outside of this city. Excess re serves of both groups of banks, though diminished by the increase in reserve requirements effective August 16th, Ratio of excess to required reserves Phila delphia banks Out side banks Dis trict totals . . . . . . . . . . .. 107% 36 ” 44 * 55 ” 71 ” 77 ” 90% 50 " 56 ’ 51 ” 56 " 57 ” 104% 41 ” 49 " 54 ” 66 ” 70 ” 1935—Oct. average ’. . . . 99 ” 70 ” 9 21 147 One year +$ 3 + 9 -$ i -* 1 23 62 2 181 - 3 + 12 445 333 -$ 4 + 10 +$16 + 46 93 306 - - 1 + 18 Total loans and investments................... $1,177 Reserve with Federal Reserve Bank........................... 286 Cash in vault................................ 17 Balances with other banks. . 170 Other assets—net....................... 88 0.3 Over the last fortnight deposits have increased at the weekly reporting mem ber banks, but the change in the four weeks ending November 18 was a de crease from the 1936 high of 1,498 mil lions to 1,490 millions. This falling off was due principally to a decline of 19 millions in funds standing to the credit of the United States Govern ment. Balances held for other banks increased to the highest level in the past two years. There was little change in total earning assets of the reporting banks, as an increase of 10 millions in holdings of United States securities was slightly Changes in Four weeks Assets Loans to brokers and dealers: + — 4 3 1 7 -S 1 +$79 - 14 + 2 + 5 + 1 + 93 + 2 + 14 - 7 +* 6 Liabilities Demand deposits, adjusted. $ Time deposits............................... U. S. Government deposits.. Interbank deposits.................... 823 275 55 337 - 19 + 9 +$90 + 17 + 31 + 39 Capital account...................... 22 226 + + + + 15 Banking conditions. Reserve balances Member bank reserve deposits Philadelphia Federal Reserve District Four weeks +$0.1 - 0.0 - 0.0 73.7% Total revenue..................... Nov. 18, 1936 Reporting member banks Changes in— $0.2 0.3 5.0 Total bills and securities.................. $214.5 Federal res. note circulation............... 301.6 Member bank reserve deposits. . 403.9 U. 8. Treasurer— general account. 2.8 Foreign bank deposits..................... 4.8 Other deposits........... 1.8 Total reserves............. 526.9 more than offset by declines of 7 mil lions in other securities and 4 millions in loans. Three millions of the latter were in the unclassified (largely “Com mercial”) group, which now totals 181 millions and is 10 millions below the 1936 peak attained over two months ago. The increase in these loans over a year ago has not equaled in per centage the gains recorded by most of the local indicators of productive and trade activity. - 4 1 2 2 Though broken by several substan tial recessions, the trend of deposits at the weekly reporting member banks has been strongly upward over most of the past year. Deposit expansion up to July was accompanied by a ris ing volume of earning assets, mostly in the form of investments. Reserves with the reserve bank showed little net change in this period. Since July 1st a further accumulation of deposits has been reflected in a large increase in reserve balances, while loans and in vestments have dropped off somewhat. MEMBER BANK RESERVES AND RELATED FACTORS Changes in weeks ending— Philadelphia Federal Reserve District (Millions of dollars) Changes in four weeks Oct. 28 Nov. 4 Nov. 11 Nov. 18* Sources of funds: Reserve bank credit extended in district............................... Commercial transfers (chiefly interdistrict)......................... Treasury operations............................................................................ - 1.0 -12.4 + 3.6 - 1.2 + 1 .0 - 2.6 + 2.1 + 3.0 + 3.5 - 2.9 + 1.4 - 2.5 - 3.0 - 7.0 + 2.0 89 ” Total........................................................................................................ half half half half half half Page Six - 9.8 - 2.8 + 8.6 - 4.0 - 8.0 Uses of funds: Currency demand................................................................................. Member bank reserve deposits.................................................... “Other deposits’’ at reserve bank.............................................. Unexpended capital funds of reserve bank.......................... + 3.2 -13.1 - 0.0 + 0.1 + + - + + + + - 3.1 1.0 0.4 0.3 + 8.2 -16.4 + 0.2 + 0.0 Total........................................................................................................ 1936—Aug.—1st 2nd Sept.—1st 2nd Oct. —1st 2nd - 9.8 - 2.8 - 4.0 - 8.0 ^Preliminary 4.7 7.5 0.1 0.1 3.4 5.2 0.3 0.3 + 8.6 Employment and Payrolls in Pennsylvania RESERVE DEPOSITS OF MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT, MILLIONS (All figures are rounded from original data) Manufacturing Indexes Employment* (Indexes are percentages of the 1923-25 average taken as 100. Total and group indexes are weight ed proportionately.) REQUIRED Oct. 1936— Per cent Per cent per cent Oct. change from Oct. change from change from 1936 1936 index index Oct. Sept. Oct. Sept. Oct. Sept. 1935 1936 1935 1936 1935 1936 All manufacturing......... EXCESS OVER REQUIREMENTS 1932 1933 1934 1935 1936 1937 1933)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Licensed banks only after March LOANS TO CUSTOMERS REPORTING MEMBER BANKS PHILA. FED. RES. DISTRICT Iron, steel and products . Non-ferrous metal prods. Transportation equip. . . Textiles and clothing.... Textiles................................ Clothing............................... Food products....................... Stone, clay and glass.... Lumber products................ Chemicals and products . Leather and products___ Paper and printing............. Printing................................ Others: Cigars and tobacco.... Rubber tires, goods. . . Musical instruments . . Employehoursf Payrolls* 88 +10 +i 79 117 67 107 103 126 108 86 67 91 96 96 92 +21 +12 87 +24 +2 -0 +2 +0 +1 89 128 +40 +27 +47 + 3 + 2 +10 + 6 +23 +14 +18 + 5 +12 +15 69 85 55 - 3 +14 + 2 * Figures from 2275 plants. +28 + 4 + 3 + 8 ~ 1 + 8 + 7 + 6 - 1 + 4 + 6 66 +2 +4 96 94 106 102 81 60 90 89 96 95 +2 +3 -3 84 49 -0 +0 +2 +1 -0 +0 62 - 4 +27 -18 + 6 + 6 + 4 +n + 4 + 4 + 4 - 0 + 9 + 8 + 1 - 0 + 7 + 8 +28 +40 +24 +48 + 5 + 5 + 7 + 5 +15 +14 +26 + 7 +12 +13 + 4 + 1 - 4 +24 - 8 -11 + + + + + T + + + + + 6 7 6 9 5 5 o o 6 8 o - 1 + 7 +10 + 4 + 4 - 8 t Figures from 2035 plants. MILLIONS LOANS ON SECURITIES General Index Numbers Covering twelve branches of trade and industry Employment OTHER LOANS (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) General index (weighted)____ LOANS ON REAL ESTATE I----- L-J- J.—I....I...I...I....L..I....I...I...I....I. .I....I.. I ..I. 1934 ___ I:|I_________ L 1935 1936 Loans to banks and open market excluded Percentage change—October 1936 from October 1935 City areas* Manufacturing Employ ment Wage payments Allentown................ Altoona..................... Harrisburg.............. Johnstown.............. Lancaster................ Philadelphia.......... Reading.................... Scranton.................. Trenton.................... Wilkes-Barre.... Williamsport. . . . Wilmington............ York........................... +12 4- 4 +10 +33 + 8 + 8 +12 +27 +33 +29 +59 Allentown................ Altoona..................... Harrisburg.............. Johnstown.............. Lancaster................ Philadelphia.......... Reading.................... Scranton.................. Trenton.................... Wilkes-Barre.... Williamsport. . . . W ilmington............ Y ork........................... +1 - 1 + 0 + 5 + 1 + 1 + 1 + 2 + + + +17 +15 + 8 +15 - 2 +12 +26 + 9 4 9 5 5 +13 + 2 Building permits (value) + 72 - 0 +237 +649 +218 + 42 +768 + 46 • +152 - 45 + 20 + 17 +261 Debits +27 +30 +17 +41 +29 + 9 +24 - 3 - 4 + 5 +25 + 15 +30 + + + + 0 0 1 6 + 78 - 37 + 88 + 80 +375 + 66 + 76 + 36 + 48 - 70 - 64 - 35 + 10 +21 +12 +19 +16 +15 + 8 +17 +12 + 8 + 12 +25 121 138 81 123 85 118 167 94 118 114 108 101 108 Oct. 1935 Sept. 1936 + 8 +2 +1 +5 +2 +1 -3 -3 +0 +7 +1 +1 -0 +1 +10 -15 + 7 +25 +18 -17 + 5 + 4 + 7 + 5 + 7 +11 Oct. 1936 index Per cent change from Sept. 1936 +21 +24 -13 +30 +48 +62 + 3 + 8 +10 + 9 +14 +13 +11 169 212 91 226 112 235 171 100 123 111 120 109 122 Oct. 1935 + 7 + 6 +39 + 9 + 8 + 4 - 1 + 2 + 7 + 2 + 7 + 2 +10 Retail trade sales +16 +40 +15 +31 +18 +11 +17 +13 +32 + 8 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUFACTURING AND NON -MANUFACTURING INDUSTRIES AND SERVICES PERCENT +31 ~PAYROLLS October 1936 from September 1936 + 4 + 2 + 4 + 7 + 4 + 6 + 5 + 6 +14 + 4 + 2 + 3 + 7 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. 1936 index Payrolls Per cent change from +27 +10 + 8 + 17 +31 EMPLOYMENT +21 +18 + 1 + 17 +17 +37 +20 1933 1934 1935 * Area not restricted to the corporate limits of cities given here. Page Seven Index numbers of individual lines of trade and manufacture RETAIL TRADE PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT ADJUSTED TOR SEASONAL VARIATION IDI-t 3AWV.IOO ALL STORES Philadelphia Federal Reserve District SALES Index numbers: percentages of the 1923-1925 average as 100 Adjusted for seasonal variation seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not be typical. Per cent change Oct. Aug. Sep. Oct. 1935 1936 1936 1936 Oct. 1936 frc>m Month Year ago ago Retail trade i*.,, Sales Department....................................... Men’s apparel.................................. Women’s apparel............................ Shoe....................................................... Credit.................................................... 1936 from 10 mos. 1935 Oct. 1935 Aug. Sep. 1936 1936 Oct. DEPARTMENT STORES IOOI----------------------- ———----------------------------- 1936 a/V SALES 80 73 65 66 69 93 129 72 61 71 r 85 88 79 76 120 85 98 83 74 81 108 90 92 — 5 - 7 70 67 54 54 66 64 91 r 109 69 68 82 88 Total of all stores................................ STOCKS Not adjusted 70 73 56 73 56 71 101 66 98 4- 0 -f o + a -10 + 5 - 6 19 13 22 16 24 + 29 +n +10 +14 +12 + 5 +32 79 80 74 69 105 74 87 r 64 56 54 88 46 81 71 63 104 87 93 74 61 70 115r 76 86 + + + + + 67 51 66 96 68 87 77 58 71 122 72 99 94 84 85 121 91 112 ......... . STOCKS 20 Stocks of goods 113 67 97 — 11 — l +1 + -f -j- + + 9 4 7 12 4 20 81 64 MENS APPAREL STORES 128 73 104 Rate of stock turnover 3.27 + 8* Wholesale trade Sales Total of all lines................................... 76 87 84 p 86 Boots and shoes............................... 48 63 53 54 Drugs.................................................... 87 99 100 106 Dry goods........................................... 39 45p 44p 45p Electrical supplies.......................... 64 86p 78p 7 Op Groceries............................................. lOSr 122 119 113 Hardware............................................ 54 56 62 63 53 71 Jewelry................................................. 47 70 74 79 80 Paper..................................................... 73 - 2 + 2 + 5 + 2 - 3 - 6 - 1 +1 +1 + + 9 +14 +11 +16 +16 + 3 +15 +22 +ii 87 59 85 52 82 118r 62 70 78 82 98 96p 71 76 67 92 103 104 42p 58p 60p 71p 94 p 97p 120 132 123 50 66 71 41 87 95 70 81 86 70 27 117 45r 100 74 65 r 65 59 + 11 + 13 + 21 + 14 + 18 + 4 + 15 + 35 + 10 + 3 + 2 3.53 69 73 29 30 29 112 113 116 45 r 46 r 47 107p 113p 69* 78 84 71 71 76 61 60 62 63 63 62 WOMENS APPAREL STORES Stocks of goods 67 73p 68 70 28 27 30 30 113 109 110 113 43r 42 r 42r 45 89 lOOp 106p 11 Op 78' 69 75 78 80 73 68 r 72 62 55 59 56 58 62 60 61 + 2 4 -j- 1 + 9 + 6 — 2 -j-j- 4+ + 9 8 0 4 23 13 17 5 5 Rate of stock turnover 5.01 + 6* 5.29 Output of manufactures 37 64 50 55 86 14 68 24 156 103 75 45 102 118 129 Cement........................................................... 38 Brick................................................................ 46 Lumber and products............................ 26 Pig iron........................................................... Steel................................................................. Iron castings................................................ Steel castings............................................... Electrical apparatus................................ Motor vehicles........................................... Automobile parts and bodies............ Locomotives and cars............................ Shipbuilding................................................. Silk manufactures.................................... Woolens and worsteds........................... Cotton products........................................ Carpets and rugs..................................... Hosiery........................................................... Underwear.................................................... 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..................................... 70 55 41 92 62 86 119 117 77 71 137 93 61 85 75 110 94 18 75 35 236 105 74 58 150 126 150 57 52 27 89 69 62 95 69 88 155 115 81 82 151 118 58 94 69 120 100 19 75 37 287 102 70 57 130 105 137 64 56 53 r 53 29r 33 58 94 81 125 95 18 66 35 r 243 97 67 56 133 123 138 83 89 59 98 68 91 156r 110 91 87 r 155 123 87 43 53p 98 69 98 144 105p 98 82 142p 124 -51 - 9 - 0 +1 + 7 - 8 + 57 + 47 + 36 +119 + 17 + 36 + 10 + 51 + 84 — 1 — 7 + 25 + 27 — 11 + 6 + 70 + 16 + 27 +34 +29 37 64 53 52 94 13 65 23 150 106 83 47 117 130 141 42 46 27 54 87 73 106 104 15 70 36 233 101 76 52 137 110 139 72 54 30 + 1* + 23 +1 + U -15 - 4 + 6 + 8 +13 + 4 +18 + 5 + 4 + 1 - 2 -15 - 1 +14 - 1 +12 + 3* 88 +18 74 88 77 — 21 + 31 +26 +13 + 7 + 12 + 13 + 21 + 9 +11 + 4 47 53 113 59 70 101 69 86 166 - 5 - 8 +39 + 4 - 0 +12 + 14 10 + 27 + 15 + 4 +1 +75 +41. +33 +86 +15 +34 +40 +63 +94 - 3 - 2 +21 +12 - 7 +15 + 33 - 4 + 8 +30 63 87 129 122 78 76 138 91 111 81 83 152 115 54 89 82 114 104 15 63 34 230 97 74 53 147 123 138 66 54r 31 88 r 83 77 78 114 68 90 178r 114 91 82 r 157 118 58 94 73 114 110 17 71 35 276 104 77 59 148 115 149 72 53 34 89 91 36 80p 120 70 99 155 HOp 99 88 144p 121 934 * Computed from data unadjusted for seasonal variation. Page Eight p—Preliminary. V r—Revised.
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