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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT DECEMBER z, i935 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Industrial production increased more than seasonally in October and there was also a considerable advance in factory employment and payrolls. There was a continuous inflow of gold from abroad and an increase in bank deposits. Industrial production and employ ment. ■ Volume of output at factories and mines, as measured by the Board’s seasonally adjusted index of industrial production, increased from 89 per cent of the 1923-1925 average in Septem ber to 94 per cent in October, reflect ing larger output in a wide range of industries. Automobile production, which had been at a low level in Sep tember when preparations were being made for the manufacture of new models, increased rapidly during Octo ber and the early part of November. At steel mills, activity increased slightly in this period, contrary to the usual seasonal tendency, and in the third week of November was at about 54 per cent of capacity. Lumber pro duction showed little change. Among the industries producing non-durable manufactures, the principal changes in output were increases of consider 140 vn 130 INDUSTRIAL PRODUCTION _ _ _ _ 1_ _ _ _ ably more than the usual seasonal amount at cotton mills, woolen mills, and meat-packing establishments. At mines output of bituminous coal was in larger volume than in other recent months and output of crude petroleum continued to increase. Factory employment, which ordina rily shows little change at this season, increased considerably between the middle of September and the middle of October, reflecting substantial in creases in the industries producing du rable manufactures. The most marked expansion was in the automobile in dustry and there were smaller in creases at railroad repair shops and in the iron and steel, machinery and non-ferrous metals industries. Em ployment at canning factories showed a considerable decline, largely of a seasonal character. Total value of construction con tracts awarded, as reported by the F. W. Dodge Corporation, showed a con siderable increase in October followed by a slight decline in the first half of November. In this six-week period total contracts were substantially larger than a year ago, reflecting WHOLESALE PRICES Indexes of the United States Bureau of Labor Statistics. (1926 =100.) By months 1929 to 1931; by weeks 1932 to date. CONSTRUCTION CONTRACTS AWARDED FACTORY EMPLOYMENT PER CENT 140 marked increases both in residential building and in other types of con struction, but the volume is still at a relatively low level. Distribution. Railroad freight-car loadings increased by a considerable amount from September to October, reflecting principally larger shipments of coal and miscellaneous freight. In the early part of November car load ings were at a lower level than in October, chiefly as a consequence of seasonal developments. Department store sales, which usually increase at this season, showed little change from 120 130 110 120 120 110 110 100 100 90 90 80 80 70 70 60 60 90 90 80 70 30 50 1929 1930 1931 1932 1933 1934 1935 Index of industrial production, adjusted for seasonal variation. (1923-1925 average =100.) 50 1929 1930 1931 1932 1933 1934 1935 Index of factory employment, adjusted for seasonal variation. (1923 1925 average =100.) Three-month moving averages of F. W. Dodge data for 37 Eastern States, adjusted for sea sonal variation. Latest figure based on data for August and September and estimate for October. Page One September to October on a daily av erage basis, and the Board’s seasonally adjusted index declined from 81 per cent of the 1923-1925 average to 77 per cent. Commodity prices. The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, was slightly lower in October and the early part of No vember than in the latter part of Sep tember, reflecting reductions in the prices of farm products and foods off set in part in the index by an advance in prices of other commodities, partic ularly hides and leather products and textiles. Prices of hogs and pork showed a decrease, as is usual at this season, while cotton advanced. Bank credit. Excess reserves of member banks increased further by $190,000,000 during the five-week pe riod ended November 20, reflecting a continued inflow of gold from abroad. At the end of the period excess re serves were at a new high level of over $3,000,000,000. Total loans and investments of re porting banks in 101 leading cities in creased by $190,000,000 during the five weeks ended November 20, reflecting principally an increase in holding of United States Government securities. Adjusted demand deposits of these banks showed an increase of $550, 000,000 for the period. The call money rate of New York Stock Exchange loans was increased from j4 of 1 per cent to of 1 per cent in the last week of October. At the same time the rate on time loans was increased from % of 1 per cent to 1 per cent, but few loans have been made. Other money rates have re mained at former low levels. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial activity in the Philadel phia Federal Reserve District has con tinued to be well maintained during October and such recessions as have been apparent since then do not seem to be of larger proportions than usual for November. The increase in out put of manufactures and crude pe troleum during October was nearly offset by an exceptional decrease in the production of anthracite fuel. The aggregate volume of industrial output has continued substantially larger than in the past three years. The value of building contracts awarded for residential and non-residential construction increased while that for public works and utilities de clined during October; for the year to date residential contracts alone show large gains over the same period last year. The real estate market has shown some improvement with respect to renting demand and the availability of mortgage funds. Farm activity has been up to the normal rate for this season. The mar keting of agricultural crops has been heavy during October as is to be ex pected and income from farm products sold has continued larger than last year. Current income from dairy and poultry products has been running ahead of last year, partly because of higher prices. Prices of standard feedstuffs in this section have declined since last year. Retail trade sales during October failed to measure up to the usual rate of increase over September, owing largely to the unfavorable weather in the second half of the month. Nor was the first part of November up to the normal seasonal expectations, though the latter half of the month showed a considerable improvement in the sale of seasonable apparel. Wholesale trade activity in October did not quite keep up its seasonal rate. Sales of new passenger automobiles declined rather sharply and the sale of life insurance did not increase as much as it usually does in October. More than seasonal improvement occurred in the move ment of goods by rail as well as by motor truck. The number of workers in twelve branches of trade and industry in Pennsylvania increased 3.5 per cent and the amount of compensation 7.8 per cent from the middle of September to the middle of October. Compared with a year ago, general employment in October was 2 per cent larger and payrolls 15 per cent greater, but for the first ten months this year employ ment registered virtually no change while payrolls were 5 per cent larger than in the same period last year. Public expenditures for relief in Penn sylvania in the same period rose from about $96 million to $166 million, an increase of 73 per cent, according to the latest report of the State Emer gency Relief Administration. ManufacturingManufacturing ac tivity in this district has been well OUTPUT OF MANUFACTURES BY CLASSES MANUFACTURING ACTIVITY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT PRODUCTION CONSUMERS’ GOODS DURABLE GOODS PAYROLLS 1930 Page Two 1932 1933 1934 1935 1930 1934 1935 sustained during the past three months and it seems that recessions in No vember have not been larger than usual at the end of the autumn season. Sales of factory products in the ag gregate have shown customary de clines since October, so that the vol ume of unfilled orders for 'manufac tures at present appears to be smaller than at the same time in October but substantially larger than in the past three years. Largely as a result of active demand and cautious adjustment of productive schedules to actual orders, inventories of finished products at factories on the whole have been reduced further and they continue smaller than last year. Purchases of raw materials by local industries also have slackened during the month, save for a few instances, but the aggregate volume continues to be somewhat larger than a year ago. Stocks of raw materials and food stuffs in the country as of the end of September were the smallest for that month in several years, as indicated by figures compiled by the Department of Commerce. The price index of the Bureau of Labor Statistics for commodities ex clusive of farm products and foods on November 23 was 79.0, relative to the 1926 average, as compared with 78.4 a month ago, 78.1 a year earlier and 77.5 two years ago. The number of factory wage earn ers in this - district as well as the amount of wages paid and the number of employee-hours actually worked have increased steadily since midsum mer and in October they were at the highest levels since early 1931. The extent of the gains during October, as in August and September, measured up to the usual seasonal increases es timated for this period. Preliminary reports for November indicate cus tomary declines of about the ordinary proportions. The October index of factory em ployment was about 80, relative to the 1923-25 average, showing a gain of almost 7 per cent over a year ago, while the indexes of payrolls and working hours were around 70, indi cating gains of 21 and 26 per cent re spectively over last year. In the first ten months this year the number of wage earners employed was 3 per cent larger than in the same period last year, 17 per cent greater than two years ago and 20 per cent larger than in 1932. Similarly, the amount of wages paid out was 9 per cent above that of last year, 43 per cent larger Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not Oct Aug. Sept, Oct. be typical. 1934 1935 1935 1935 Industrial production............. Manufacturing—total................... Durable goods.............................. Consumers' goods......................... Metal products............................... Textile products............................. Transportation equipment.......... Food products................................. Tobacco and products.................. Building materials......................... Chemicals and products............... Leather and products................... Paper and printing........................ Coal mining......................................... Anthracite....................................... Bituminous...................................... Crude oil.............................................. Electric power Output.............................................. Sales, totalX..................................... Sales to industriest........................ Employment and wages—Pa. 67 65 47 79 52 71 42 75 90 25 97 103 77 53 53 56 358 Oct. from ft Month Year ago ago 77 75 57 89 65 90 51 69 92 28 110 126 83 63 65 49 377 77p + 76p + 61p + 88p 68 + 91p + 58 + 65p — 92 + 34 + 104p — 113p — 82 — 49p — 48p — 61p + 390 + 0 2 7 1 6 2 16 5 1 20 6 11 1 22 26 24 3 +15 +17 +30 + 12 +32 +29 +38 -13 + 3 +37 + 7 + 9 + 6 - 7 - 9 + 9 + 9 + 7 71 + 9 68 + 8 + o +14 54 +25 74 + 0 40 — 7 78 - 0 110 + 2 26 + 2 98 + 3 no + 2 78 -10 67 -11 68 + 0 60 +10 358 73 73 79 77 81p 80p 65 90 34 72 90 31 104 130 78 38 36 53 376 65 91 48 72 106 30 109 138 82 63 65 50 377 71 95p 56 69p 113 36 105p 119p 83 62p 62p 65p 390 192 201 187 194 132 138 196 186 145 198 + 192 + 144 — 1 3 0 + 3 + 3 + 9 + 2 198 + 1 187 + 6 128 191 184 143 192 204 184 192 153 140 + + + 2* 7* 8* + 7* +21* +26* + 3* 75 +10* 57 + 8* 56 77 64 64 + + 3* 8* + 2* — o* 109 +15* + 5* 120 105 122 108 112 128 138 + 9 +97 - 2 -11 +62 -57 + 3 — 10* +22* +18 Building and real estate Contracts awarded!—total............. Residential.................................... Non-reside ntialf............................ Public works and utilities!.......... Permits for building—17 cities . . . . Mortgages recorded—Philadelphia. Real estate deeds—Philadelphia . . Sheriff deeds (1930= 100)............ Other deeds (1930 = 100)............ Writs for Sheriff sales—Phila.......... 1028 946 34 25 35 70 15 4 26 Retail trade—sales............................ stocks.......................... Wholesale trade—sales..................... . # stocks.................. Life insurance sales............................ New passenger auto, registrations . Hotels—Occupancy (1934 = 100) Income, total (1934 = 100) Freight car loadings—total............. Merchandise and miscellaneous . Coal................................................... 80 64 81 63 66 67 62 75 65 108 71 62 77 63 105 90 + 3 — 12 — 3 + 27 — 31 + 44 + 98 +825* + 26* + 80 1212 Distribution 111 71 70p 65p 80p 66p 106 66 Business liquidations Number................................................. Amount of liabilities.......................... + 63 80 81 77 Wholesale (1926 = 100)................. Farm products................................ Foods................................................ Other commodities........................ Retail Food (1913 = 100)............... Philadelphia.................................... Scranton........................................... 80 69 70 33 11 34 96 7 13 52 178 56 514 28 21 35 31 12 6 39 104 55 908 34 36 23 21 34 33 64 86 11 14 5 4 24 54 17 161 54 68 781 606 + 2 75 69 85 69 99 58 114 112 55 56 60 52 59 72 64 88 99 91 82 58 60 50 72 79p 67 73p 91 91p 66 69p 89 97 68 54 106 116p 98 118p 63 65 65 66 57 65 6* + 6* +19* 69 24* — 16* -37* 58 69 61 69 64 74 49 65 + 5 + 2 +23 + 7* + 8* + 2 + 3 - 0 - 5 +21 68 77 79 — 6 7 — 2 - 1 29 73 27 66 26 67 29 73 0* 2* 1* 1* 0* 1* 1* + 5* + 7* 76 + 11* +23* 71 + 14* +20* 75 + 0* - x* 78 + 8* + 11* 115 + 7* + 7* 120 + 7* + 7* 117 80 79 85 78 123 127 124 + Prices—United States 78 65 65 -17 +37 — 4 -49 +34 — 25 + 3 — 4* + 9* - 2 + 5 — 13 + 2 + 5 + 7 — 1 + 4 + 1 — 2 — 4 — 7 — 7 + 10* + 2* + 20* + 6* + 5 +17 + 6 + 18 + 3 + 9 Payment of accounts (In millions of dollars) 1935 from Oct. Aug. Sept. Oct. 1934 1935 1935 1935 10 mos. 1934 74 74 53 90 62 96 36 71 84 28 104 128 80 38 36 56 365 Factory—Wage earners.................... Payrolls.......................................... Man-hours (1927-28 = 100)......... General (1932 = 100) Employment................................... ^ Payrolls............................................ Check payments................................. Rate of collections (actual) Retail trade..................................... . Wholesale trade.............................. Not adjusted Per cent ch mge — — — + + + + +35 81 80 79 78 86 85 78 78 124 124 127 128 125 126 % change from Oct. 1934 July 1935 Aug. 1935 Sept. 1935 Oct. 1935 $ $ 1811 $ 1811 $1811 Month ago Year ago Banking and credit Federal Reserve Bank Bills discounted............................ Other bills and securities........... Member bank reserves............... Reserve ratio (per cent)............. Reporting member banks Loans to customers..................... Other loans and investments... Total (gross) deposits................. Bankers' acceptances outstanding 3 168 198 66.4 $445 612 1166 13.1 226 66.6 $417 674 1254 12.2 * Computed from data unadjusted for seasonal variation, t 3-month moving daily average centered at 3rd month, (a)—Less than $500,000. 232 67.1 242 69.9 $ (a) 184 262 72.1 $414 $408 681 1283 13.4 $403 694 1319 14.1 668 1252 12.9 +2 +10 +8 +32 + 9 +3 -1 +2 +3 +5 - 9 +13 +13 +8 p—Preliminary. I Not included in production index. Page Three INDUSTRIAL FUEL AND POWER OUTPUT OF HOSIERY PHILADELPHIA PHILADELPHIA FEDERAL RESERVE DISTRICT FEDERAL RESERVE DISTRICT PERCENT PERCENT ELECTRIC POWER FULL FASHIONED USED BY INDUSTRIES FUEL OIL OUTPUT BITUMINOUS COAL SEAMLESS " 193 I 932 1934 OUTPUT 1930 1935 1931 1932 1933 1934 1935 5Ju'Cti ti.-reau of Wince than two years ago and 45 per cent greater than in the first ten months of 1932. Output of factory products in this district has expanded progressively since June, reaching in October the highest level since 1931 with one ex ception. This bank’s index of factory productive activity, which is adjusted for the number of working days and the usual seasonal change, rose in Oc tober to 76, relative to the 1923-25 average, as compared with 75 in Sep tember, 74 in August and 72 in July; a year ago this index was 65. In the first ten months, the average rate of manufacturing was approximately 9 per cent higher than in the same pe riod last year, 13 per cent greater than two years ago and 18 per cent above the level of three years earlier. Activity of industries producing durable goods, including iron and steel and some of their products, transpor tation equipment, and such building materials as cement, lumber and brick, showed a considerable improvement during the month and for the year to date was 8 per cent above that of last year. As shown by the accompanying table and chart, the October index for this industry was 61 as compared with 47 in October 1934. Industries manufacturing consumers’ goods generally reported a slight de cline in the month, owing mainly to slackened activity at hosiery plants, shoe factories, canning and preserving establishments, and at ice cream plants. While the monthly output was ap preciably larger than that in October a year ago, for the year to date pro duction was just in about the same volume as in the like period last year. Output of electric power in October increased by a slightly larger amount than usual and continued well main Four DigitizedPage for FRASER tained in November. For the year to date the total quantity produced ex ceeded that of last year by about 2 per cent. Sales of electricity for all purposes also showed an improve ment, reflecting mainly an increased demand from residences, municipali ties, and street cars and railroads. In dustrial consumption of electrical en ergy indicates about the customary decline from September to October and for the year continued about 6 per cent larger than last year. Coal and other fuels. The fluctuation in the output of anthracite fuel has been much more erratic this year than last, reflecting in large measure com petitive difficulties and weather condi tions. Large changes have been espe cially pronounced since mid-summer. Ordinarily, October is the peak month in production but this year there was a marked decrease. In the first ten months, total output amounted to 43, 215,000 net tons as compared with 48,499,000 net tons in the same period last year, a drop of almost 11 per cent. Production in the same period of 1932 and 1933 was around Per cent October change from 1935 Month Year ago ago (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. Coke Prod.. .(1923-25 = 100) Prices. . . .(1926 = 100) Gas and fuel oil Prod.. .(1923-25=100) Prices___ (1926 = 100) — 5 164,800 153,386 — 6 2,127t +21 82.5 + 2 101,104 +28 - 9 - 9 -15 + t + t 309,900 25,313 98.0 121,780 +30 +23 + 2 - 4 + 9 + 11 + 2 — 5 91.0 88.8 + 4 + 0 +32 + 4 93.1* -11 02.4f 0 — 5 + 0 . Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. t September. 40,000,000 tons. Production of bituminous coal also has been rather uneven this year owing in part to labor difficulties. Output in October, which is the second largest month in point of production, was larger than usual, reflecting active de mand from industries. In the first ten months of this year the volume of bi tuminous coal mined in Pennsylvania approximated 74,980,000 net tons as compared with 74,730,000 in the same period of 1934. This volume was sub stantially larger than that in the same period two and three years ago. Output of by-product coke showed unusual activity for the third consecu tive month and for the year to date was 6 per cent above the same interval last year. Production of gas and fuel oils fell off considerably in October after gaining for two months and for the January to October period, was 6 per cent below a year ago. Building. The value of all building con tracts awarded in this district totaled $9,000,000 in October, a decrease of 10 per cent from the month before and a drop of 29 per cent as compared with a year ago. This decline was contrary to seasonal tendency and re flected a sharp reduction in the value of contracts let for public works and utilities, educational buildings and cer tain unclassified structures, which more than offset substantial increases in awards for residences, commercial buildings and factories. Expansion in residential construc tion, which began in March, has been especially pronounced during the past four months. The improvement shown thus far this year has been due largely to gains in the dollar volume of awards for one and two family dwell ings, which accounted for nearly 28 VALUE OF BUILDING CONTRACTS PHILADELPHIA FEDERAL RESERVE SALES OF NEW PASSENGER AUTOMOBILES DISTRICT REGISTRATIONS PERCENT PERCENT UNITED STATES PUBLIC WORKS AND UTILITIES PHILADELPHIA--------FEDERAL RESERVE DISTRICT ’ NON - RESIDENTIAL RESIDENTIAL 1931 1932 1933 1934 1935 1936 1930 1932 1934 1935 Sovrce E W D.4g. Cory. Building contracts Philadelphia Federal Reserve District Oct. 1935 (000’s omit ted) Per cent change 1935 From from month 10 mos. 1934 ago 3,216 140 3,076 2,504 771 600 351 782 +41 + 2 +43 + 1 +28 +93 -20 -31 +37 + 6 +43 - 4 + 2 - 8 — 56 +46 5,720 Public works and utilities. 3,340 +20 -37 +10 -49 9,060 -10 -17 Commercial..................... Source: F. W. Dodge Corporation. per cent of the contract total in the first ten months this year, as com pared with 16 per cent in the same period of 1934. Building operations on contracts awarded earlier this year showed some further expansion in' October, as in dicated by additional gains in em ployment, wage payments and work ing time. Activity in miscellaneous types of contracting work also in creased in the month, while the con struction and maintenance of streets and highways declined. Agriculture. The agricultural situa tion at the close of the crop season in this district shows a decided improve ment as compared with last year. Satisfactory growing conditions preT vailed throughout the greater part of tlie spring and summer months and in the early fall unusually mild weather was especially favorable for the development of late crops and the winter grains. Yields this year of nearly all important crops, with the exception of tobacco and possibly white potatoes, are expected to be near or above the average of the five years, 1928-32, according to recent estimates by the Department of Agri culture. Higher prices for some farm prod ucts together with increased yields have resulted in a larger cash income to farmers thus far this year than last. Rental and benefit payments also have exceeded those of a year ago. Lower feed costs have helped the dairy and poultry industries, both of which pro vide a relatively large proportion of the cash income of farmers in this dis trict. There has been apparent a tend ency in this district as in the country toward lower interest charges on farm mortgages. Prices of commodities that farmers usually buy including fertilizer have declined somewhat since the mid dle of the year. Distribution, trade and service. Total freight car loadings increased 5 per cent more than usual from September to October, owing mainly to larger than seasonal gains in deliveries of merchandise and miscellaneous com modities, and coal. Rail freight con sisting chiefly of manufactures origi nating in the Philadelphia industrial area decreased somewhat more than usual in October but continued in greater volume than a year ago. Ship ments of merchandise by motor truck have increased seasonally, as indicated by reports on employment and pay rolls from certain transportation con cerns of Pennsylvania. Business at wholesale was main tained at nearly the customary seasonal level in October, when the total dollar sales of eight important lines com bined showed a slight decline from the month before. In comparison with a year ago, aggregate sales showed a gain of 7 per cent and were 5 per cent larger in the first ten months this year than last. In early November demand for electrical supplies and jewelry in creased further, while that for hard ware declined, according to prelimi nary reports. The value of retail trade sales of department, apparel, shoe and credit stores increased 10 per cent from Sep tember to October, but this rate of gain was not nearly as large as is nor mally expected at this season. Marked increases in the first part of the month were largely offset by decreases to ward the end of October when the weather turned out to be unusually mild. Compared with October 1934, total dollar sales in October were 5 per cent larger; for the year to date sales were 2 per cent larger than in the first ten months last year, 16 per cent greater than two years ago and 7 per cent above the dollar volume sold from January to October in 1932. De mand for general merchandise in early November continued to reflect high temperatures but in the latter part of the month sales generally were stimu lated somewhat by colder weather. Sales of new passenger automobiles, as measured by registrations in this district, declined more than usual from September to October and were about 7 per cent below the level of a year ago. Although this decline has been exceptionally sharp during the past four months, largely as a result of an early introduction of new models, the Hotel business Philadelphia Federal Reserve District Oct. per cent change from 1935 from Month Year ago ago in os. 1934 Room occupancy.................... Per cent of capacity used: Oct. 1935................ 53.3 Sept. 1935................ 48.5 Oct. 1934................ 52.2 Income from: Guest rooms......................... I1 ood....................................... Other sources....................... + 0 +10 — 0 + 2 + 7 + 12 +36 +18 + 11 +12 + 0 + 9 + 12 Total revenue.................. +20 + « + 8 Page Five number of units sold in the first ten months this year was 23 per cent larger than a year ago and exceeded that of any like period since 1930. Activity of commercial hotels, ex cluding resort hotels, showed an addi tional increase during October, reflect ing largely seasonal improvement in general business conditions. Banking conditions. The reserve deposits of member banks increased 8 millions in the four weeks ending No vember 20 to 273 millions; this figure, while not the highest reached in the period, was 73 millions larger than a year ago. The district had a large adverse balance in interdistrict com mercial payments, but the major part of this was due to a single transaction apparently connected with a security refunding operation which some time ago brought a large sum temporarily into the district and greatly increased miscellaneous deposits at this bank. The latest figures show a considerable reduction in such deposits, as was to be expected. Apart from this transac tion, there was a further loss of funds on other accounts in the interdistrict settlements; a rise of 7 millions in cur rency demand, somewhat exceeding that in the corresponding period last year, also tended to reduce bank re serves. The fact that they actually increased was the result largely of an 18)4 million excess of Treasury dis bursements over receipts caused partly by relief disbursements. There was only a slight increase in Reporting member b&nks (000,000’s omitted) Nov. 20, 1935 Assets Loans to brokers and dealers: In New York City... . * Outside New York City. Loans on securities to others (except banks) . . . Acceptances and commerLoans on real estate............ Other loans............................. Total loans........................ $ U. S. Government securities....................................... Obligations fully guaranteed by U. S. Gov’t......... Chan ges in Four weeks 6 — $7 12 — 1 148 — 22 69 + 3 169 — 1 — SU 3 — — 21 -11 1 4 2 - 5 429 — S10 -i 43 287 + 6 + 10 94 288 4- 1 + -f- 62 25 Total loans and investments.............................. SI,098 -$ 3 Reserve with F. K. bank. . 193 + 7 Cash in vault........................ 15 + 1 Due from domestic banks.. 156 12 Other assets—'net*............... 95 0 Liabilities Demand deposits—adjusted*................................ Time deposits........................ U. S. Government deposits. Interbank deposits............... One year + 1 _. . 11 * Less cash items on hand or in process of col lection. DigitizedPage for FRASER Six MEMBER BANK RESERVES AND RELATED FACTORS Changes in w eeks ending— +* .54 + 64 + 1 + 1 + 7 733 + 12 + 149 258 — 12 — 40 24 — 3 — 17 298 — 5 + 46 20 224 outstanding reserve bank credit during of collection) decreased 8 millions. the last four weeks, and bills dis The assets show a rise of 7 millions counted for members continued at a in reserves at the reserve bank, while very low level. Loans and commit balances with other banks were re ments approved by the bank to provide duced by 12 millions and outstanding working capital for established bus credit by 3 millions. Open market inesses increased from $22,300,000 on loans and investments in total did not October 23 to $22,700,000 on Novem change, a decrease of 7 millions in ber 20; banking institutions have loans to New York City brokers and agreed to participate in over $16, dealers being equaled by a rise in se 500,000 of the latter total. Actual ad curity holdings which reflected chiefly vances by this bank to date aggregate the acquisition of direct obligations of $9,800,000, while repayments of $2, the United States. Loans to custom 900,000 have been made, leaving $6, ers decreased 3 millions but have 900,000 outstanding; in a'ddition to shown no material fluctuation in the these advances, nearly $900,000 of last month and a half. commitments were in effect on No A third of the substantial rise in de vember 20th. posits during the past year has been in Despite a 52 million excess of com interbank deposits. Nevertheless the mercial payments to other districts reporting banks show among their as over receipts from them, the actual sets very nearly the same amount due decline in the gold certificate reserves from banks as a year ago, the funds of this bank was only 32 millions. provided by the growth in deposits and This was due chiefly to the fact that some liquidation of loans finding place the Treasury, in order to sustain its ment for the most part in investments, deposit here in the face of large dis which increased 97 millions, and in bursements, transferred 3 millions reserves, which climbed 64 millions. from other sections and also made di The daily average of reserve de rect deposits of 16 millions to the posits of all member banks attained a credit of the bank in the gold settle new high point at 262 millions in Oc ment fund. The combined note and tober; this was 19)4 millions greater deposit liabilities also decreased, but than in September and 64 millions relatively not to the same extent as more than a year ago. The excess reserves, so that the reserve ratio de above legal requirements increased 16 clined only from 72.1 to 70.4 per cent. millions in October to 123 millions, or Over the last three months federal re 89 per cent over requirements. serve notes of this bank in circulation Federal Reserve Changes in Nov. Bank of have risen 20 millions; although part Philadelphia 20, of this represented an expansion in Four One (Dollar figures in 1935 weeks millions) year currency demand, doubtless as a result discounted. . . . ' $0.4 +$0.2 - $1.6 of greater industrial activity, in large Bills - 0.1 0.5 - 0.0 Bills bought.............. measure it reflected the replacement of Industrial advances. 6.9 — 0.0 + 5.9 United States secunational bank notes, which the reserve + 10.0 0 rities................... 177.1 banks are forwarding to Washington Total bills and se+*0.2 +$14.2 curities............... $184.9 for retirement as they are received Fed. res. note cirfrom banks and the public. -1- 8.2 + 25.8 culation.................. 262.7 bank reDemand deposits increased at the re Member + 73.3 serve deposits.... 273.1 + 8.0 S. Treasurer—• porting member banks in the last four U.general + 1.5 + 0.3 account... 3.1 weeks, but there was a falling off in Foreign bank de+ 0.8 2.1 3.0 posits...................... several other classes of deposits, so Other deposits.......... 18.1 —48.2 + + 14.3 + 103.4 reserves........... 394.3 -31.6 that total deposits adjusted (deposits Total 70.4% - 1.7% + 4.7% Reserve ratio............ less cash items on hand or in process Philadelphia Federal Reserve District (In millions of dollars) Changes in four weeks Oct. 30 Nov. 6 Nov. 13 Nov. 20 Sources of funds: Reserve bank credit extended in district.......................... Commercial transfers (chiefly interdistrict)..................... Treasury operations................................................................ — 0.9 + 4.7 + 4.8 — 2.6 — 42.3 - 1.0 + 3.8 — 14.1 + 9.7 + 0.4 - 0.7 + 5.1 + 0.7 — 52.4 + 18.6 Total........................................................................................ + 8.6 -45.9 — 0.6 + 4.8 -33.1 + + + - 1.4 7.1 0.1 0.0 + 6.3 + 1.7 -54.0 + 0.1 + + + + + - 1.8 6.2 0.5 0.1 + 7.1 + 8.0 -48.2 — 0.0 + 8.6 -45.9 — 0.6 + 4.8 -33.1 Uses of funds: Currency demand.................................................................... Member bank reserve deposits............................................ “Other deposits” at reserve, bank...................................... Unexpended capital funds of reserve bank...................... Total........................................................................................ 1.2 7.0 5.2 0.0 Employment and Payrolls in Pennsylvania RESERVE DEPOSITS OF LICENSED MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS (All figures are rounded from original data) Manufacturing Indexes TOTAL Employment* (Indexes are percentages of the 1923-25 average taken as 100. Total and group indexes are weight ed proportionately.) EXCESS OVER LEGAL REQUIREMENTS All manufacturing 1933 1934 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 . . 1935 LOANS AND INVESTMENTS REPORTING MEMBER BANKS Employehours f Payrolls* Oct. 1935— Per cent Per cent per cent Oct. change from Oct. change from change from 1935 1935 index Oct. Sept. index Oct. Sept. Oct. Sept. 1934 1935 1934 1935 1934 1935 80 66 104 56 103 99 116 109 79 62 87 96 93 87 + 7 + 9 +15 +11 + 7 + 10 + 0 + 18 +10 - 3 +11 + 3 + 4 +2 +1 +2 +8 +1 +0 +3 —2 +6 +2 +3 -1 +1 +2 72 74 54 + 1 + 1 + 10 +1 +4 +1 69 +21 + 7 +26 63 +38 +10 +38 100 +26 + 6 +37 40 + 12 +20 +13 92 +13 + 3 +20 91 +15 + 3 +22 96 + 5 + 0 + 8 96 — 1 - 3 - 4 66 +41 +15 +41 53 +28 +11 +31 74 + 2 + 5 + 6 82 +15 - 3 +15 86 + 7 + 2 + 7 82 + 6 + 0 + 6 65 66 60 +11 +11 +41 + 5 +21 +26 + 5 +18 +44 PHILA. FED. RES DISTRICT * Figures from 2,270 plants. s + 8 + 10 + 9 +21 + 3 + 3 - 0 — 5 + 15 + 12 + 5 - 2 + 3 + 1 + 6 +22 +25 t Figures from 2,041 plants. 700 OPEN MARKET LOANS AND INVESTMENTS General Index Numbers •** • Covering twelve branches of trade and industry 600 ■w. A- V •\ ... f' (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) 500 La ^— LOANS TO-/ 400 Oct. 1935 index Per cent change from Oct. 1934 Sept. 1935 + 2 + 7 + i — 5 — 19 — 13 +25 - 1 4- 4 + 3 — 5 + 0 — 4 + 3 4- 2 4-28 — 4 — 0 — 1 — (1 — 0 4- 7 + i + 3 — 0 - 1 CUSTOMERS General index 300 1933 1934 1935 M anufacturi ng Employ ment Wage payments Building permits (value) Allentown............. Altoona................. Harrisburg........... .1 ohnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre. . . Williamsport........ Wilmington.......... \ ork...................... + 3 — 1 + 9 + 5 +15 + 9 + 15 — 5 - 1 + S +11 4- i +18 +17 -10 +21 -j-54 +29 +14 +21 4" 1 +18 +12 +22 + 2 +37 + 35 + 89 +399 + 8 +174 +104 - 49 + 56 +241 + ii — 2 + 49 - 88 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... York....................... + + + + + + + — + + + Debits - 1 +ii +27 +12 +27 +14 +13 +12 +16 +17 +24 +20 (weighted)___ Manufacturing............................. Anthracite mining....................... Bituminous coal mining............. Building and construction......... uarryingand non-met. mining rude petroleum producing . . . Public utilities.............................. Retail trade................................... Wholesale trade........................... Hotels............................................. Laundries....................................... Dyeing and cleaning................... § Percentage change—October 1935 from October 1934 City areas* Employment 112 125 95 115 68 100 201 90 114 107 103 95 97 Payrolls Oct. 1935 index 138 169 105 173 75 144 176 92 112 102 105 96 110 change from Oct. 1934 Sept. 1935 +15 +21 +17 +10 + 1 + 4 +22 + 3 + 3 + 4 + i + 6 - 0 + 8 + 7 +46 + 6 + 8 + 3 + — + + - 5 1 7 1 1 Retail trade sales + 7 +12 + 7 + 8 +11 +1 - 5 + 4 + 2 + 3 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT PAYROLLS + 8 October 1935 from September 1935 5 0 1 3 0 1 0 3 i 2 0 4 7 +13 + 0 + 8 + 16 - 0 + 1 + 7 + 2 + 5 + 3 + 3 + 3 +11 +173 + 14 + 22 - 39 + 92 + 40 + 2 + 12 - 25 + 8 - 20 - 86 - S3 + 10 + 6 +15 + 16 +17 +14 +16 +22 +23 + 15 +14 + 7 +11 * Area not restricted to the corporate limits of cities given here. +20 +12 + 1 +25 +29 EMPLOYMENT +n + 6 — 3 + 6 +17 +24 1932 1933 1934 1935 Page Seven RETAIL TRADE Index numbers of individual lines of trade and manufacture PHILADELPHIA FEDERAL RESERVE DISTRICT Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Not adjusted Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Per sent cha nge Unadjusted indexes reflect merely the Oct. 19. 5 from 1935 actual change which may or may not Oct.. Aug. vSep. Oct. from 1934 1935 1935 1935 be typical. 10 Month Year mos. ago ago 1934 Oct. Aug. Sep. Oct. 1934 1935 1935 1935 DEPARTMENT STORES Retail trade Sales Total of all stores . . . Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... 66 67 80 70p -13 63 65 75r 65p -14 - 8 59 59 72 66 -22 84 110 119 93 — 15 73 53 87 r 74 57 74 70p - 5 67 Stocks of goods Total of all stores . Department........... Men’s apparel. . . , Women’s apparel. Shoe......................... Credit..................... 62 54 62 83 58 73 62 51 59 94 59 74 64 54 60 97 57 77 65p + 2 55p + 1 + 9 66 86 -11 + 0 61 80p + 3 + 5 + 2 + 11 + 12 + 2 + 5 + + + + + + + + + + + + 2 2 5 4 1 7 69 61 66 105 62 78 5 2 6 4 4 9 Rate of stock turnover 10 months (actual, not indexes) 75 72 63 94 72 81 + 6* 52 72 49 67 r 46 60 75 103 44 Sir 54 70 79p 74p 69 105 74 86p 59 67 73 p 48 56 62p 61 65 70 83 104 109 57 60 65 72 79 84p MEN'S APPAREL STORES 3.29 3.10 Wholesale trade Sales Total of all lines. Boots and shoes... Drugs...................... Dry goods............... Electrical supplies. Groceries................ Hardware............... Jewelry................... Paper....................... Stocks of goods Total of all lines. Boots and shoes... Drugs...................... Dry goods.............. Electrical supplies. Groceries................ Hardware............... Jewelry.................... Paper...................... 75 38 87 35 119 46 48 61 77 81 49 44 88 92 34 38 76 64 112 123 48 51 35 51 68 74 80p 48 87 41 64p 120p 54 53 73 + — + + + + - 1 8 5 9 1 3 6 3 1 + 7 + 25 0 + 17 + 17 + 1 + 19 + 9 + 19 + 1 + 27 1 — 16 + 17 — 5 + 16 + 11 + 6 65 22 63 24 63 27 66p 28 + 4 + 3 48 76 73 59 40 86 66 70 49 57 40 87 65 69 54 56 41 89 69p 69 62 58 + 3 + 2 + 0 - 0 + 14 + 2 54 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.................... Woolens 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......................... t............... Leather, goat and kid............. Explosives.................... Paints and varnishes. Petroleum products. . Coke, by-product. . . . + + + + + + + + 69 22 117 51 85 78 56 59 56 + 59 101 109 29 28 21 33 57 64 56 76 13 47 18 78 106 81 43 131 121 126 28 36 23 102 90 48 90 58 81 112 95 69 64 134 70 69 115 54 84 60 | 84 140 116 81 71 137 84 16 45 48 38 73 15 40 15 1 15 88 +13 + 6 — 5 + 3 + 6 +63 + 18 +22 +10 + 2 + 9 + 2 + 0 — 6 + 5 +26 +n +24 — 2* + 3 68 70 +13 49 55 48 35p -27 +1 91 92 + 2 62 61 - 1 87 86 -13 137 119 116 106p - 8 +n 69 77 72r 69 - 4 153 138p -10 + 2 91 93 33 61 53 53 80 9 58 20 142 97 69 r 45 102 125 121 30 41 20 37 64 50 55 85 14 68 24 156 99 75 45 102 118 127 38 46 25 * Computed from data unadjus ted for. seasonal variation. +128 + 44 + 4 + 42 + 17 — 10 + 6!) + 65 + 36 + 12 + 67 + 31 + 74 + 17 + 17 + 29 + 62 + 24 + i* 31 — 39 — 27 + 2 + 5 + 6 + 6 + 12 + 11 + 8 + 3 + 32 5 85 4 48 1 86 5 47 3 71 6 130 52 11 16 65 8 65 2* 4 + 10 + 9 — 5 + 23 + 2 + 0 — 8 + 3 + 4 + 84 + 11 +119 + 16 + 20 — 9 + 12 + 5 — 1* — 22 — 18 — 6 + 0 + 6 + 2 + 5 + 2 — 5 + 3 + 2 + 6 72 91 91p 56 64 59 82 95 85 55 32 51 62 76 82p 110 136 130p 43 54 62 63 70 31 65 75 78 64 26 110 43 92 61 69 54 59 66 69p 28 27 111 116 44 43 93 100 65 74p 68 65 59 65 58 59 4.73 4.62 16 45 51 36 79 14 38 14 110 90 49 36 67 111 118 33 28 21 87 107 76 62 110 60 82 121 99 70 69 134 69 p—Preliminary. 29 58 62 54 84 11 44 18 78 103 83 38 120 105 117 36 37 25 84 61 99 57 90 60 81 150 111 81 73 138 83 WOMEN'S APPAREL STORES 31 58 54 48 88 7 55 19 135 97 76r 42 112r 125 121 35 41 r 21 89 70 42 60 106 61 86 r 157 120 69 68r 155 87 37 64 53 52 93 13 bo 23 150 101 83 47 117 130 139 42 46 26 88 74 47 o2p 113 63 87 129 nip 78 74 138p 91 SHOE STORES CREDIT STORES r—Revised. 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@FedFRASER