The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT DECEMBER z, 1940 FEDERAL RESERVE BANK OF PHILADELPHIA Business and Banking Conditions in the United States Industrial output rose sharply in Oc tober and the first half of November and prices of basic commodities ad vanced further. New orders both for defense purposes and for civilian needs continued in large volume. Production. Volume of industrial production, as measured by the Board’s seasonally adjusted index, rose further in October to about 128 per cent of the 1935-1939 average as compared with 125 in September and 126 at the peak reached last December. Increases in output were marked in the automobile and textile industries. In the rayon industry, where produc tion in September had been curtailed by a strike, activity increased con siderably and cotton textile mills were also more active. Mill sales of cotton goods have been large since the middle of August, reflecting increased civilian and military demand, and have been in excess of production during most of this period. At wool textile mills, where activity had risen sharply in September, there was a further increase in October. Backlogs of orders in this industry are now of considerable INDUSTRIAL PRODUCTION Index of physical volume of production, ad justed for seasonal variation, 1935 -1939 aver age = 100. By months, January 1934 to October 1940. size owing to a large volume of orders received during the past two months, particularly from the government. Automobile production rose to about 500,000 cars and trucks, the largest monthly total since the spring of 1937, and retail sales of both new and used automobiles were reported to be large for this time of year. In the steel and machinery indus tries activity continued at a high rate in October. In the first half of No vember steel ingot production ad vanced slightly further and was at about 96 per cent of capacity. This high rate of output is expected to be maintained for some time to come, ac cording to trade reports, as new orders for steel have continued large. Lum ber production, which had risen sharply since mid-summer, declined less than seasonally in October. New orders for lumber were somewhat below the high r?te of August and September but remained above produc tion, reflecting in part continued gov ernment demands. Bituminous coal production de clined sharply in October but in the FACTORY EMPLOYMENT AND PAYROLLS Indexes of number employed and payrolls, without adjustment for seasonal variation, 1923-1925 average = 100. By months, January 1934 to October 1940. Indexes compiled by the United States Bureau of Labor Statistics. first half of November showed some increase. In this industry output had been maintained in large volume dur ing the summer owing in part to considerable stocking of coal in antici pation of higher prices. Anthracite production also declined in the first half of October but rose sharply in the latter part of the month owing in part to seasonal influences. Crude pe troleum production, which had been curtailed during most of the summer, increased further in October. Value of construction contract awards increased in October, following MONEY RATES IN NEW YORK CITY TREASURY BONDS — TREASURY NOTES I—%y _____ U________ a. I For weeks ending January 6, 1934, to Novem ber 9, 1940. WHOLESALE PRICES OF BASIC COMMODITIES Federal Reserve groupings of Bureau of Labor Statistics’ data. Thursday figures, January 4, 1934 to November 7, 1940. Page One a decline in the previous month, ac cording to figures of the F. W. Dodge Corporation and the Federal Reserve Bank of San Francisco. Changes in the amount of contract awards in re cent months have reflected principally fluctuations in contracts for public projects. Awards for private construc tion have shown about the usual sea sonal changes, following a sharp rise in July and August. Distribution. In October department store sales declined considerably from the advanced level of the two preced ing months, while sales at variety stores, which also had been large in August and September, increased sea sonally. In the early part of Novem ber department store sales increased somewhat. Total loadings of revenue freight in October were maintained at about the level reached in September. Ship ments of miscellaneous merchandise in creased further, while loadings of coal showed a sharp decrease. In the first week of November freight-car loadings declined by less than the usual seasonal amount. Wholesale commodity prices. Prices of basic commodities continued to ad vance from the middle of October to the middle of November, with the chief increases in industrial materials, particularly lead, hides, wool and tex tile yarns. The general index of whole sale commodity prices rose further by about 1 per cent in this period, re flecting increases in prices of some finished goods as well as of materials. Bank credit. Total loans and invest ments at reporting member banks in 101 leading cities have increased sub stantially since the end of September. Commercial loans showed sizable in creases both in New York City and in other leading cities. Following reduc tions during August and September, holdings of United States Government obligations at these banks also in creased. Federal Reserve System hold ings of government obligations were reduced by $180,000,000 between Sep tember 25 and November 13. United States Government security prices. After, rising moderately dur ing the latter part of October prices of United States Government securi ties advanced sharply in the early part of November. The quotation on the 1960-65 bonds reached a new high level at about 110J4j and the yield on this issue declined to 2.12 per cent com pared with 2.25 per cent in October and 2.26 per cent in June 1939 and again in April 1940. The average yield on 3 to 5 year Treasury notes declined to less than y% of 1 per cent. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial production in the Third Federal Reserve District was sustained in October near the highest levels of the past three years. The output of heavy manufactured goods exceeded any period since 1930, and production of consumers’ goods and electric power increased somewhat more than was to be seasonally expected in the month. Activity at mines and in oil fields declined. The continued expansion in business activity is reflected in sustained rises in consumer incomes, an increased use of bank credit, and a generally firm price structure. The principal factor in the improvement during the past few months, however, appears to have been the increasing demand for de fense materials, which has stimulated private buying and resulted in extended delivery periods. Information on new methods of fi nancing defense production has been made available to banking and indus trial establishments in a circular re cently issued by this bank. This in cludes some discussion of supplies and facilities contracts with an indication of the general procedure in acquiring and financing government orders. Construction activity declined some INDUSTRIAL AND TRADE ACTIVITY what in October from the high levels reached in the preceding months, but the prospects are for an increasing amount of plant expansion. General employment and payrolls in Pennsylvania increased 3 per cent from September to October to the highest level since 1937. Gains in the month were general except in anthracite min ing and certain trade and service in dustries. Preliminary reports indicate further increases in factory employ ment and wage disbursements in No vember. Retail business continued active in October, although the gain over the WHOLESALE PRICES PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT PRODUCTION 7 INDUSTRIAL STAPLES 813 COMMODITIES RETAIL TRADE SALES 7 AGRICULTURAL STAPLES | 1935 1936 Page Two 1937 1938 1939 1940 1937 193 8 1939 preceding month was smaller than was to be seasonally expected. Sales at wholesale expanded further and stocks in both channels of trade increased somewhat. Both sales and stocks in distributive establishments are above a year ago. Wholesale prices in the aggregate have advanced almost steadily since September and now approximate the high point reached at the end of 1939 and early this year. The largest ad vances recently have been in quotations on industrial raw materials and im ported commodities. Manufacturing. The demand for products manufactured in this district continues active. Sales of iron and steel and miscellaneous manufactures advanced further in the month ended the middle of November; buyers’ in terest in textile and leather products remained strong; while demand for building materials declined seasonally. Sales in virtually all reporting lines, particularly in the case of iron and steel and construction materials, are substantially above a year ago, and delivery periods are lengthening. Gov ernment demand for defense materials continues increasingly active, and the impact of this production is spreading into many related lines. The volume of unfilled orders on hand at reporting steel and textile mills increased further in the month, and backlogs generally were larger than those on hand in the same period of 1939, except in the case of some con sumers’ goods. Prices in most lines ad vanced in the month and were above a year ago, the gains being especially pronounced in the building materials industries. Factory operations increased further in the latest period and are generally at higher levels than a year ago. In ventories of raw materials have in creased somewhat, while supplies of finished goods have declined. At most reporting plants stocks appear to be near the level prevailing in the late fall of 1939. Employment at Pennsylvania fac tories increased 3 per cent from Sep tember to October and wage disburse ments were expanded 5 per cent. Customarily the number of workers advances only slightly and payrolls are unchanged at this season of the year. The gain in employment was the fifth in succession and carried the index to a level 11 per cent above the year’s low point in May and 4 per cent above October of last year. Wage pay 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. 1939 1940 1940 1940 Oct. 1940 from Month Year ago ago Industrial production.... Manufacturing—total.............. 91 r Durable goods........................ Consumers’ goods.................. 87 r 90 92 r 85 100 78 101 46 131 124 89 73 r 71 r 86 r 460 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, totalt............................. Sales to industries J............... 90 r 88 r 92 85 r 96 76 r 121 83 104 42 131 107 87 r 73 72 82 413 91 90 101 82 104 r 70 138 81 102 43 140 107 86 r 69 67 85 407 91p 91p lOlp 83p 104 74 p 145 79p 103 45p 132p 104p Not adjusted Per cent ch ange ' 1940 from Oct. Aug. Sept. Oct. 10 1939 1940 1940 1940 mos. 1939 0 + i (J + i 0 + 6 + 6 _ 2 0 + 4 - 6 - 3 0 -15 -16 - 8 - 1 + i + 3 + 16 - 7 + 13 -13 +46 + 2 + 1 - 3 + i -17 - 3 -20 -21 - 9 -12 + 7 + 8 + 31 - 5 +36 -12 + 39 + 2 + 5 + 8 + 9 -10 + 1 - 1 - 5 + 30 - 1 + 2 0 0 + 8 + 7 + 4 + 8 281 + 9 271 + 10 192 + 3* + 5* + 0* 272 r 294 271 290 198 193 58p 56p 78 403 289 293 289 290 207 206 + 4* + 8* 90 + 9* + 17* 88 r + 8* +20* 87 r 89 89 94 89 95 82 124 49 133 132 90 77 r 75r 92 r 460 99 72 r 117 83 111 48 131 110 84 r 56 53 77 413 104r 107 71 77p 130 139 87 87p 118 125 47 48p 139 134p 117 llOp 86 r 87 67 62p 64 59p 87 84 407 403 280 276 198 283 302 287 290 219 200 90 89 87 91 94 92 96 90 r 94 + 3* + 6* 116r 113 + 5* + 14* 170r 167 117 120 173r 179 -23 - 2 -29 -30 -36 - 8 + 55 86 94 92 + 3* + 3* 88 - 3 - 8 + 89 -42 + 84 +n +42 75 91 62 60 104 76 143 116 58 42 54 55 332 222 93 92 95p 95p Employment and wages—Pa. Factory—Employment................... Payrolls.......................................... Man-hours (1927-28= 100).... General (1932 = 100) Employment................................. Payrolls.......................................... Building and real estate Contracts awardedf—total. 75 r 90 Residential t............................ 57 r 49 N onresidential f...................... 42 r 104 Public works and utilitiesf. 190r 187 Permits for building—17 cities 22 22 Real estate deeds—Philadelphiaf.. 52 57 Writs for Sheriff’s sales—Phila. 313 340 94 53 111 157 65 63 286 73 52 79 110 41 58 444 + 4 78 - 8 65 + 27 40 - 1 200 + 23 23 + 14 50 - 5 156 88 55 96 162 20 55 327 Distribution 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 r 78 75 73 76 84 p - 6 79p + 1 + 2* + 1* - 5 + 87* + 5* + 11* - 1 + 4 -16 + 5 + 1 + 4* + 1* - 2 + 32* + 6* + 10* - 2 + 3 -16 + 5 + 6* + 4 +34* + 6* + 9* + 17 + 14 + 18 93 S8 69 74 92 77 94 91 126r 109 131 r 98 84 79 76 80 87 74 91 84 98p 89p 83 90 67 125 129 135p 130 145p 85 83 83 82 79 73 Business liquidations Number............................. Amount of liabilities.... _ 4* + 4* + 3* -31* - 6* 72r -25* 31r — 5 + 3 + 87 81 87 90 - 5 + 3 33 31 31 34 Wholesale (1926 = 100). + Retail food........................ 0* - 1* + 1* - 1* 0* 0* - 1* + 2* - 1* + 4* - 3* + 1* 0* + 2* 0* + 2* — 2* 0* 0* + 2* 79 67 73 84 78 79 75 77 66 70 82 78 79 74 78 66 71 82 79 78 75 79 66 71 83 78 78 75 65 20 79 21 75 21 Payment of accounts Check payments.................... Rate of collections (actual) Retail trade........................ S Prices—United States Farm products............... Foods............................... Other commodities.... Philadelphia................... Scranton.......................... (In millions of dollars) 1939 July 1940 Aug. 1940 Sept. 1940 Oct. 1940 SO.4 241 572 77.3 $0.2 197 670 84.5 $0.2 196 650 85.2 $0.3 195 658 85.0 8409 719 9.0 $460 725 9.1 $475 731 9.7 S474 729 9.3 % change from Month ago Year ago $0.3 203 677 84.7 0 +4 +3 -0 -25 -16 + 18 + 10 $477 727 9.4 +i -0 +i + 17 + 1 + 4 Banking and credit Federal Reserve Bank Bills discounted.............................. Other bills and securities............. Member bank reserves................. Reserve ratio (per cent)... Reporting member banks Loans................................................. Investments..................................... Bankers’ acceptances outstanding. * Computed from data unadjusted for seasonal variation. p—Preliminary. r—Revised, t Not included in production index. § Bureau of the Census, U. S. Department of Commerce, f 3-month moving daily average centered at 3rd month. Page Three OUTPUT OF STEEL INGOTS FACTORY PAYROLLS PERCENT %OF CAPACITY PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT UNITED STATES CONSUMERS' GOOD: CAPITAL GOODS EASTERN PENNSYLVANIA 193 6 1939 merits increased for the sixth consecu tive month and were 21 per cent above last April and 9 per cent higher than a year ago. Preliminary reports indicate further gains in November, when a seasonal decline was to be expected. The prin cipal improvement appears again to have been in the heavy goods indus tries, particularly in basic iron and steel lines and at foundries and machine shops. From September to October expan sion was greatest at plants producing capital goods, where payrolls advanced to a level 27 per cent above April and 15 per cent above October 1939. Im provement was especially apparent in the nonferrous metals industries and in such iron and steel lines as steel works and rolling mills, foundries and ma chine shops, and plants producing struc tural materials and other heavy equip ment. Producers of transportation equipment also reported substantial increases in employment and wage disbursements. Further improvement occurred at plants producing consumers’ goods, where wage disbursements were 15 per cent above the year’s low point in May. In these lines, however, the levels were still somewhat below those prevailing in October of last year, when consumer buying was unusually active. Improvement was evidenced in virtually all lines of textiles, especially cotton goods, woolens and worsteds, and carpets and rugs. Gains also ap peared in the case of food products, but declines prevailed in the clothing indus try. Hourly earnings of factory workers in Pennsylvania continued to average nearly 73 cents, and as hours worked Page Four 193 7 per week advanced to 39.3, the highest since early 1937, weekly earnings reached an average of $28.29, the high est in records going back to 1923. Employment in Delaware factories increased 1 per cent from September to October and wage payments ad vanced 3 per cent, reflecting gains in the case of textiles, metals, chemicals, and leather products. The number of workers totaled 11 per cent more and payrolls were 17 per cent higher than a year earlier. In southern New Jer sey employment and payrolls both declined 3 per cent in the latest month but continued 12 and 19 per cent re spectively above October 1939. The output of goods manufactured in this district expanded somewhat further from September to October to a level 3 per cent above October of last year. In capital goods lines the gain over a year ago was 16 per cent compared with a decline of 7 per cent in the output of consumers’ goods. The prin cipal improvement in the month was in textiles, transportation equipment, and building materials. Production of metal goods expanded about seasonally from earlier high levels, while chem icals, leather, and food products de clined. During the period January to October, total manufacturing output averaged 8 per cent above the corre sponding period in 1939, reflecting an increase of 31 per cent in the output of heavy goods and a decline of 5 per cent in consumers’ lines. The production of electric power in creased 2 per cent more than usual from September to October and was 8 per cent above October 1939. Sales of power changed about seasonally in the month but continued well above a year ago. 1938 193 9 1940 Coal and other fuels. The domestic market for fuels continues fairly active; sales of bituminous coal and coke to industry are expanding with increas ing manufacturing requirements, and the demand for anthracite is steady. Shipments of coal to foreign countries have decreased for the fifth consecutive month and in October were 37 per cent less than a year ago. Monthly ex ports of gas and fuel oils have been consistently below 1939. Prices are generally firm. Production of anthracite declined, contrary to seasonal expectations, from September to October and slackened further in early November, owing in part to an accumulation of stocks in previous months. Output averaged about 157,000 tons a day in October as against 169,000 tons in the preced ing month. The production of hard coal in the first ten months of 1940 was 5 per cent less than a year ago, when output was stimulated by re stricted operations in the soft coal regions in April and May. Output of bituminous coal also de clined during October, when a further increase was to be expected seasonally. Operations were 4 per cent below Sep tember and 9 per cent less than in 1939. Thus far this year production of soft coal in Pennsylvania, aggregating nearly 93,000,000 tons, has been 30 per cent above 1939 and the highest since 1937. By-product coke ovens in this dis trict continue unusually active and in October operations were at the highest level in records going back to 1923. Output of gas and fuel oils, however, declined to the lowest point of the year. During the first ten months of 1940 ac tivity at both coke ovens and oil re fineries was above 1939. VALUE OF RESIDENTIAL BUILDING CONTRACTS TEXTILE FIBERS MILLIONS OF LBS. 400 -A 350 — UNITED STATES PMCES MILL TAKINGS DOLLARS •HPER- LB PHILADELPHIA FEDERAL RESERVE OISTRICT PERCENT COTTON COTTON, t'l WOOL FAMILY HOUSES WOOL ■TOTAL 1937 1938 1939 1940 1937 1938 Construction activity in this district declined from September to October, on the basis of contract awards, and for the first time since last spring was below the levels prevailing in 1939. Residential construction was fairly well sustained in the month, but a sharp decline occurred in operations on commercial and industrial structures and public works and utilities. De spite the temporary lull, prospects are for further widespread plant expansions within the next several months. Building. Building contracts Philadelphia Federal Reserve District Per cent change October 1940 1940 (000’s From from omitted) month 10 ago mos. 1939 Residential........................... S 5,783 Apts, and hotels............. 1,136 Family houses................. 4,647 Nonresidential.................... 6,251 Commercial..................... 1,569 Factories........................... 1,630 Educational..................... 509 All other........................... 2,543 - 7 -45 -72 — 5 -28 - 8 -23 + 38 -40 + 25 - 7 + 160 + 0 + 26 -23 - 8 Total buildings........... $12,034 Public works and utilities. 4,415 -36 -16 +ii Grand total.................. $16,449 -31 + 7 - 1 Source: F. W. Dodge Corporation. The value of building contracts awarded in October declined more than 30 per cent from September, the largest reductions being in residential and commercial fields. In the case of family dwellings, awards were consid erably below October 1939 when activ ity was at an unusually high level. These declines were practically offset, however, by contracts for factories, ed ucational buildings, and miscellaneous nonresidential structures, which were well above a year earlier. In the first ten months of this year total building contracts have averaged 1939 1940 1935 1936 7 per cent above the corresponding period of 1939. Residential activity has been somewhat lower than last year, but awards for commercial, fac tory, and educational buildings have been substantially higher. Contracts for public works and utilities in the first ten months aggregated about the same value this year as last. Distribution, trade and service. The movement of commodities through dis tributive channels continued active during October and remained above the level of a year ago. Shipments of manufactured goods by rail improved further. Sales at wholesale and retail exceeded the volume in September, al though purchases by consumers did not expand so sharply as is customary at this time of year. Inventories in creased somewhat further but at the end of October were only slightly larger than in 1939. Retail trade sales in this district in October increased nearly 8 per cent from the large volume reported a month earlier. This gain was less than usual for the period and the seasonally adjusted index receded from 89 to 84. Smaller than customary increases were reported by department, men’s apparel, and credit stores, and declines from September occurred in the case of women’s apparel and shoes. The ag gregate dollar volume of business handled in October, however, con tinued about 5 per cent greater than in the same month last year. Sales in all reporting lines were above the 1939 level, with the most pronounced im provement occurring at department stores. Stocks of merchandise at retail estab lishments increased about seasonally during October. The rate of stock 1937 1938 1939 1940 turnover so far this year has been somewhat more rapid than in the same period of 1939. Business at wholesale showed a gain of about 2 per cent from Septem ber to October. Increased sales at establishments handling paper, hard ware, groceries, and dry goods more than offset sharp declines in the case of shoes and jewelry and a smaller contraction in the sale of electrical supplies. The total dollar volume for October was 4 per cent greater this year than last, and sales in the first ten months of 1940 were 6 per cent above the level of a year ago. Whole salers’ inventories in the aggregate were slightly larger than in September and showed a small increase over Octo ber 1939. Freight-car loadings in the Alle gheny district in October were well sustained for the third successive month, but they slackened somewhat in early November, according to pre liminary reports. Compared with September, shipments of merchandise and miscellaneous commodities, ore, and forest products were unusually heavy. Coal traffic, however, declined considerably in October, and loadings of grain, livestock, and coke did not measure up to seasonal expectations. The movement of commodities originat ing in the Philadelphia area, consisting chiefly of manufactured products, con tinued heavier than usual throughout October and exceeded the volume of a year ago by a substantial margin. Registrations of new passenger auto mobiles have increased sharply from the year’s low reached in the Septem ber changeover period and in October showed a gain of 32 per cent over a year earlier. The volume of sales in Page Five the first ten months of 1940 was 34 per cent larger than in 1939 and the highest since 1937. Revenue at nonresort hotels in this district expanded 11 per cent from Sep tember to October and was greater than in the same month last year. Hotel business Philadelphia Federal Reserve District Room occupancy.................... Per cent of capacity used: Oct. 1940............... 59.7 Sept. 1940............... 56.6 Oct. 19.39............... 56.4 Revenue from: Guest rooms........................ Food....................................... Other sources...................... Total revenue...................... Oct. per cent change from 1940 from Month Year ago ago mos. 1939 0 + 5 0 + 6 + 6 + 2 + 24 + 14 + 5 + 17 + 12 + 9 + 10 + 7 + 11 + 10 + 9 Commercial loans have increased moderately in the past month to a level approximating the highest point of 1940 and well above a year ago. Expansion in funds available to trade and industry to fi nance the general increase in business activity and production under the de fense program was reflected in further growth in excess bank reserves. The reserves of all member banks in the district are more than double the re quirements against deposits, and in most instances could be increased con siderably by drawing upon the heavy balances maintained with correspond ents. Banking conditions. Member bank reserves (Daily averages: dollar figures in millions) Held Re quired Ex cess Philadelphia banks: 1940: Oct. 1-15 $475.4 $223.8 $251.6 Oct, 16-31 482.8 226.0 256.8 Nov. 1-15 484.7 Ratio of excess to re quired 112% 114 ” 1939: Nov. 1-15 429.6 210.0 219.6 105 * Country banks: 1940: Oct. 1-15 Oct. 16-31 Nov. 1-15 199.1 196.0 197.8 100.6 100.7 98.5 95.3 98 ” 95 * 1939: Nov. 1-15 173.2 97.2 76.0 78 ” Banking and business institutions throughout the Philadelphia Federal Reserve District have been informed of the general procedure to be followed by business concerns seeking govern ment orders and funds to finance pro duction on these orders. Sources of information with respect to materials to be purchased and bids already ac cepted, and legislation or regulations applying to assignments of government contracts and the amortization of de fense facilities are indicated in a cir Page Six Federal Reserve Bank of Philadelphia (Dollar figures in millions) Bills discounted................. Bills bought........................ Industrial advances......... U. S. securities.................. Nov. 20, 1940 Changes in— Four weeks One year $0.5 + *0.1 + SO.O 0 0 0 2.1 - 0.3 - 1.0 187.1 - 10.5 - 35.3 Total................................. $189.7 -$10.7 -$36.3 Note circulation................ 391.6 + 12.7 + 51.6 Member bank deposits... 700.6 + 28.0 + 109.3 U. S. general account.. . . 26.0 + 12.1 - 27.0 Foreign bank deposits. . . 75.3 + 1.7 + 37.1 ()ther deposits.................... 30.9 + 5.6 + 18.0 Total reserves.................... 1,056.6 + 69.8 + 228.6 Reserve ratio...................... 86.3% + 1.5% +6.3% cular prepared by this bank. This circular may be obtained upon request. Member bank reserves aggregating $700,600,000 on November 20 were the largest shown in any weekly statement in the past six months and exceeded the figures of a year ago by $109,300, 000. In the past four weeks the ex pansion has amounted to $28,000,000, reflecting chiefly sharp gains in com mercial and financial transactions with other districts. Additional funds were supplied to the local market by Treas ury operations. The Treasury received large amounts of Social Security taxes and of unemployment trust funds from the states, but disbursements for de fense, work relief, and routine opera tions exceeded receipts. Funds were absorbed by an increase in outstanding officers’ checks of this bank and by an expansion of $18,000,000 in currency demand, which exceeded by several millions of dollars the amounts called for in the corresponding periods a year and two years ago. Holdings of government securities by this bank declined $10,500,000 to $187,100,000 as a result of further sales from the System Open Market Account. Changes in discounts for member banks and in industrial ad vances were negligible. Outstanding credit of the reporting member banks was at the highest point since 1931 on the 13th of the month but declined to $1,205,000,000 on November 20, a level slightly lower Changes in— Reporting member banks (000,000’s omitted) 20, 1940 Assets Commercial loans...................... $ 231 Open market paper.................. 35 Loans to brokers, etc............... 21 Other loans to carry secur.. .. 34 Loans on real estate................. 50 Loans to banks.......................... 1 Other loans................................. 107 Four One weeks year* +* + - 4 2 2 2 0 0 1 +*38 + 11 0 + 3 0 0 + 13 Total loans............................ $ 479 +$ 1 + $65 Government securities............. $ 362 -$ 2 +* 3 Obligations fully guaranteed. 90 - 3 - 11 Other securities......................... 274 + 3 + 5 ' Total investments................ $ 726 -S 2 -* 3 Total loans & investments . $1,205 -* 1 +$62 Reserve with F. R. Bank. .. . 521 + 28 23 + 1 Balances with other banks. . . 222 - 9 80 0 Liabilities Demand deposits, adjusted . . $1,047 + *14 Time deposits............................. 258 - 3 U. S. Government deposits.. . 47 0 Interbank deposits.................... 467 + 5 14 218 + Capital account......................... 0 3 * On comparable basis. than that shown four weeks earlier. Commercial loans increased $4,000,000, but the expansion in total loans was restricted to $1,000,000 by declines in holdings of open market paper and in unclassified loans. The investment portfolio was reduced $2,000,000, as the sale of $5,000,000 of governments was only partly offset by the purchase of corporate and municipal securities. Deposits at the reporting banks in creased $16,000,000 in the four weeks ended November 20 to $1,819,000,000, owing principally to the heavier bal ances carried by individuals and busi ness concerns. In the last half of October gross deposits at all member banks in the district averaged $3,331, 000,000, a record level, and were $200, 000,000 larger than a year earlier. Increases over the twelve months amounted to 7 per cent at banks in Philadelphia and in other cities and towns with populations of 15,000 or more, and to 4 per cent at members located in smaller centers. MEMBER BANK RESERVES AND RELATED FACTORS Philadelphia Federal Reserve District (Millions of dollars) Oct. 30 Nov. 6 Nov. 13 Nov. 20* Changes in four weeks Sources of funds: Reserve bank credit extended in district............... Commercial transfers (chiefly interdistrict).......... Treasury operations..................................................... - 0.1 + 4.2 + 19.9 -0.3 +4.8 -3.3 - 0.7 +20.9 + 0.8 + 2.2 + 14.2 -10.3 + i.i +44.1 + 7.1 Changes in weeks ending— Total............................................................................. + 24.0 + 1.2 +21.0 + 6.1 + 52.3 Uses of funds: Currency demand......................................................... Member bank reserve deposits................................. “Other deposits” at reserve bank........................... Other Federal Reserve accounts............................... + 0.8 + 14.2 + 9.0 - 0.0 + 8.6 -8.8 + 1.4 + 0.0 + 3.2 + 19.7 - 2.2 + 0.3 + + + 5.7 2.9 2.6 0.1 + 18.3 + 28.0 + 5.6 + 0.4 Total............................................................................. + 24.0 + 1.2 + 21.0 + 6.1 + 52.3 * Preliminary. Employment and Payrolls in Pennsylvania MILLIONS (All figures are rounded from original data) Manufacturing Indexes TOTAL Employment* Payrolls* (Indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and group indexes are weight Oct. change from Oct, change from 1940 1940 ed proportionately.) index Sept. Oct. index Sept. Oct. 1940 1939 1940 1939 All manufacturing Iron, steel and products . Non-ferrous metal prods. Transportation equip. . . 1 extiles and clothing. . . . Textiles........................... Clothing.......................... Food products................... Stone, clay and glass.... Lumber products ........... Chemicals and products . Leather and products . . . Paper and printing......... Printing........................... REQUIRED; 38 ’39 DEPOSITS AT MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS 94 91 133 69 92 87 115 113 85 65 98 88 100 90 Cigars and tobacco.... Rubber tires, goods . . . Musical instruments . . EXCESS 67 84 70 +3 +3 +5 +5 +2 +4 -2 +2 +4 0 0 0 + 4 + 13 + 9 + 11 - 8 - 9 - 7 + 3 + 4 0 + 4 - 2 - 1 +3 - 1 +1 + 8 +2 - 8 + 1 + 17 * Figures from 2429 plants. 96 123 176 77 90 85 113 119 93 64 111 87 105 97 Employeehours f Oct. 1940— per cent change from Sept. Oct. 1940 1939 + 5 + 9 + 5 + 5 + 16 + 4 + 6 + 15 + 7 + 10 + 16 + 10 + 7 + 7 + 8 - 6 + 8 + 1 0 - 1 + 1 + 4 + 3 + 6 + 3 + 7 - 1 + 1 + 1 - 1 + 2 - 2 - 3 - 1 - 2 0 - 1 + 2 - 2 - 1 + 2 + 8 + 14 + 14 + 17 - 9 -10 - 7 + 3 - 1 + 1 + 3 —13 - 4 - 2 62 0 + 8 0 97 + 3 -13 + 3 92 + 19 +36 +ii + 9 -14 + 21 f Figures from 2194 plants. General Index Numbers Covering twelve branches of trade and industry COUNTRY BANKS Employment (Indexes are percentages of the 1932 average taken as 100. In Per cent dividual indexes are combined Oct. change from proportionately into general in 1940 dex number.) index Sept. Oct. 1940 1939 1400 1300 General index (weighted)... PHILADELPHIA BANKS 19 3 7 19 3 8 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................... I 94 O 120 146 66 107 61 118 135 101 114 119 105 104 108 +3 +3 -1 0 +2 0 -2 0 +6 + 3 + 4 -1 - 4 - 2 + 5 + 6 + 2 + 5 + 5 + 1 0 + 7 +3 +n -1 +3 Payrolls Oct. 1940 index Per cent change from Oct. 1939 + 3 + 5 179 235 55 229 94 243 166 114 133 127 123 133 Sept. 1940 + 5 + 9 -18 + 5 + 5 + 3 + 2 0 - 2 + 4 - 1 + 4 143 -38 — 6 + 14 + 1 + 9 + 7 + 5 + 2 + 2 + 3 + 18 Percentage change—October 1940 from October 1939 City areas* Manufacturing Employ ment Wage payments Building permits (value) Debits Allentown............. Altoona.................. Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... York....................... +u + + + + 4 2 1 7 9 + 18 + 2 + 17 + 13 ~ 1 + 14 + 4 - 9 + 9 + 7 - 2 + 15 + 10 + 62 + 144 - 42 - 49 + 109 + 139 + 140 - 32 - 10 + 159 - 56 - 44 + 242 + 5 + 19 + 9 + 10 + 3 + 11 + 3 -13 + 28 + 6 + 15 + 6 + 12 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton.................. Wilkes-Barre.... Williamsport........ Wilmington.......... York....................... + + + + + + + + + + + + 3 1 4 1 2 3 3 3 2 3 1 3 5 + 4 + 11 + 8 - 2 + 6 0 - 7 Retail trade sales + 3 + 9 + 13 + 9 + 3 + 8 + 18 - 3 + 13 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA lg BRANCHES OF TRADE AND INDUSTRY PERCENT PAYROLLS + 11 + 7 October 1940 from September 1940 + + + + + + + + + + + + 3 9 8 4 0 3 9 4 3 8 4 5 4 + 36 + 13 + 92 - 48 + 566 - 21 - 39 - 17 - 76 + 151 - 74 - 45 + 88 +20 +20 + 2 + 12 + 20 + 16 + 13 + 2 + 38 + 17 + 17 + 2 + 15 + 10 + 8 — 1 + 12 + 20 + 9 + 20 + 10 + 8 + 7 + 21 + 8 rsmAt l EMPLOYMENT 1934 1935 1937 1938 1939 1940 * Area not restricted to the corporate limits of cities given here. Page Seven RETAIL TRADE PHILADELPHIA FEDERAL RESERVE OISTRICT adjustcd Index numbers of individual lines of trade and rc* TOTAL manufactures SALES VV/ 2^ Philadelphia Federal Reserve District ST0C K$ 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. DEPARTMENT STORES Per cent change Unadjusted indexes reflect merely the actual change which may or may not Oct. Aug. Sept. Oct, 1939 1940 1940 1940 be typical. Oct. 1940 from Month Year ago ago 1940 from Oct. Aug. Sept. Oct. 1939 1940 1940 1940 10 mos. 1939 Retail trade Sales Total of all stores. . . Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit.................... 80 r 92 80 69 77 r 81 97 r 114 108 81 109 97 Stocks of goods Total of all stores. . . Department........... Women’s apparel. Shoe......................... Credit...................... 78 53 109 67 103 89 79 83 114 94 100 84 p 75 78 99 83 lOOp 77 52 109 78 79p 53 55 109r 108 66 66 102 105p 101 66 - 6 - 5 - 6 -14 -12 - 1 + + + + + + 5 9 2 2 3 3 + + + + + + + 1 2 1 1 2 i 2 1 1 2 Rate of stock turnover 10 months (on annual basis) . + 5 93 + 6 80 + 6 86 r 0 11 Or 0 91 + 5 121 88 61 130 73 115 + 4* 4.18 69 60 61 84 65 92 74 49 103 67 98 i o k: 91 98p 79 87 75 87 118 112 108 93 105 125p 84 57 126r 71 112 MENS APPAREL STORES 89p 62 130 72 117p 4.36 Wholesale tradef Sales Total of all lines.... Boots and shoes... Dry goods.......... Electrical supplies. Groceries................ Hardware............... Jewelry.................... Paper....................... + 2* -30* + 2* - 6* + 6* + 11* -25* + 18* Stocks of goods Total of all lines.... Dry goods........ .. Electrical supplies. Groceries................ Hardware............... Jewelry.................... Paper....................... + _ + + — + _ + 4* -11* - 8* + 10* + 9* + 5* - 1* + 1* i* 4* 5* 5* 2* 7* 4* + 19 + 8 + 11 - 1 + 30 + 22 + 23 + 52 + 62 -15 -14 -18 -28 -12 -13 0 - 6 - 2 + 5* 0 -31 + 13 + 2 - 3 - 3 -13 -22 +78 - 2 -14 + 7 STOCKS V. ,.jj A Vv + 1* -12* + 9* + 2* +n* + 3* + 2* - 6 - 2 - 2 - 6 + 4 + 17 + 14 + 1« 0 + 7 + 6 + 4 + 2 + 4 - 2 0 + 7 + 6 0* 0 103 + 4 71 60p -12 0 102 77 - 2 0 88 + i 132 77p - 7 + 18 163 80 -11 150p -12 - 1 147 + 6* + 3* - 1* + 18* - 1* + 14* + 22* + 14* ^SALES ____ SHOE STORES Output of manufactures Pig iron......................................... Steel............................................... Iron castings............................... Steel castings.............................. Electrical apparatus................. Motor vehicles................... .. Automobile parts and bodies. Locomotives and cars............. Shipbuilding.............................. Silk manufactures.................... Woolen and worsteds............. Cotton products....................... Carpets and rugs...................... Hosiery....................................... Underwear................................. Cement....................................... Brick............................................ Lumber and products............. Bread and bakery products.. Slaughtering, meat packing.. Sugar refining........................... Canning and preserving......... Cigars.......................................... Paper and wood pulp............. Printing and publishing......... Shoes........................................... Leather, goat and kid............. Explosives.................................. Paints and varnishes............... Petroleum products................ Coke, by-product..................... * 71 94 r 64 127 87 23 91 28 417 91 66 r 57 126 105 147 65 57 29 . . . . . . . 94 93 72 113 103 24 87 35 581 75 55 43 97 104 138 63 47 26 103 115 51 102 72 53 100 103 81 79 91 88 130 151 99 86 91 126 83 82 174 159 137i 142 90 85 104 102 72 71p 135 127 109r 114 24 28 98 112 39 42 675 678 73 r 77 53 56 45r 47 89 91 88 92 129 127 65 65p 50 r 53 27 29 103 68 68 101 79 88 131 83 138 89 170 148 Computed from data unadjusted for seasonal variation, of the Census, U. S. Department of Commerce. t Bureau Page Eight +72 +36 +33 + 31 + 38 - 1 + 19 + 92 + 52 -14 -10 - 4 -17 -16 - 7 + 4 + 21 + 4 + '3 -18 + 14 + 5 + 10 0 -12 - 6 + 39 + 4 + 1 + 32 84 84 82 70 99 102 94 r 95 73 75p 69 68 122 120 109 121 95 114 120r 124 21 26 21 21 93 106 82 86 37 40 35 26 401 575 641 651 73 r 79 73 93 58 61 72r 56 42 48 39 59 96 102 89 144 90 88 101 115 160 128 129 138 76 72p 79 73 51r 54 49 58 29 30 28 30 93 93 89 97 103 108 108 44 59 59 86 89 90p 82 70 123 110 117 125 79 78 81 81 85 r 87 89 91 149 142 163 139 87 80p 82 103 126 138 164 92 851 85 85 88 175 160 173 151P 140 142 144 135 p—Preliminary. b\ r—Revised. JLi SALES A JA, ./ t;; J AJHi/1W K A /v., s ■ y STOCKS CREDIT STORES A .Aa* Bf* / A V 1936 V SAL 1937 193 8 ES 1939
@FedFRASER