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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA f RESERVE DISTRICT FEBRUARY i, i934 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Industrial activity as measured by the Federal Reserve Board’s season ally adjusted index, showed an in crease in December, following upon four months of decline. Factory em ployment declined somewhat, while em ployment by public agencies showed a considerable increase. The Board’s index of industrial production, which is adjusted to allow for seasonal variation, advanced from 73 per cent of the 1923-1925 average in November to 74 per cent in December. For the fourth quarter of 1933 as a whole the volume of industrial output was 13 per cent larger than for the corresponding period of 1932. Activity in the steel in dustry, contrary to seasonal tendency, increased considerably in December and there was also an increase in the output of automobiles. Shoe produc tion declined by an amount smaller than is usual in December. At textile mills, activity declined further by con siderably more than the usual seasonal amount to about the low level of last spring. The number of employees at fac tories declined between the middle of November and the middle of December Production and employment. INDUSTRIAL PRODUCTION by somewhat more than the usual sea sonal amount, reflecting chiefly reduc tions in working forces at cotton, woolen and silk mills and at clothing factories. At automobile factories there was a substantial increase in em ployment. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, increased further in December and the first half of Jan uary. There was a large increase in contracts awarded for public works and private construction also increased. In the fourth quarter of 1933 as a whole construction contracts in 37 states totaled $500,000,000 as compared with $300,000,000 in the last quarter of 1932. around 64 per cent of parity from the end of November to January 13, de clined to 62 per cent on January 17, and subsequently advanced to a range from 62 to 63 per cent. Wholesale commodity prices, which had shown a slight decline be tween the middle of November and the third week of December, advanced in the following month, reflecting chiefly increases in the prices of farm prod ucts and foods. Cotton and grains showed marked increase and livestock prices also advanced somewhat. Prices. At the reserve banks the seasonal return of currency from Bank credit. FACTORY EMPLOYMENT PUCVa Freight car loadings, particularly of miscellaneous freight, declined in December as compared with November by less than the usual sea sonal amount. Dollar value of sales by department stores showed an increase slightly larger than is usual for De cember. Distribution. Dollar eicAange.The foreign exchange value of the dollar which had fluctuated CONSTRUCTION CONTRACTS AWARDED allow Of DOLLARS ***”____ ______________ MILLION 120 110 SO 1929 1930 1931 1932 1933 SO 1934 Federal Reserve Board’s index of factory em ployment with adjustment for seasonal varia tion. (1923—1925 average =100.) WHOLESALE PRICES All Otto' Residential Index number of industrial production, justed for seasonal variation. (1923-1925 a age =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 November and December and estimate for January. Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931: by weeks 1932 to date. (1926=100.) Page One circulation after the holiday demand amounted to about $250,000,000 from the high point on December 22 to Jan uary 17. A large part of the funds arising from this inflow of currency to the reserve banks was added to the reserve balances of member banks, with the consequence that these balances in creased by January 17 to $900,000,000 in excess of legal requirements. The return flow of currency from circulation and the reduction of bal ances held by commercial banks for the United States Government were reflected in an increase of demand deposits at reporting member banks. Loans of the banks declined between December 13 and January 17, while holdings of United States Government and other securities increased. Short-term money rates in the open market, which had shown a slight ad vance in December, declined in Janu ary to the previous level. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial activity in this district has been curtailed somewhat more than usual, while mercantile business has shown improvement in the past six weeks. Retail trade sales registered exceptional gains in December and continued well sustained in the first half of January. Decreases in whole sale lines also were smaller than is customary at the end of the year. De liveries of goods by rail and motor freight have been more than seasonally active since early December. Output of factories, on the other hand, has been reduced further, showing larger than the expected decline from November to December. Production of anthracite also fell off sharply, while the drop in that of bituminous coal was less than ordinarily occurs at the turn of the year. Industrial production in 1933 as a whole was 5 per cent larger than in 1932, in spite of the extremely low level in the first quarter of the year. Construction activity generally has been unusually dull throughout the year, particularly in the case of resi dential building; the striking exception to this is found in public works which have expanded greatly under the civil and public works movement in the latter part of the year. In general, the level of industrial, trade and commercial activity at the turn of the year was noticeably higher than at the opening of 1933 when business was on the decline after showing an im provement in the fall months of 1932. The number of workers as well as their earnings in private industries, trades and services decreased further in December and in the first part of January. The general index number of employment in twelve occupations in Pennsylvania dropped one per cent from the middle of November to the middle of December, owing mainly to reduced activity in manufacturing and anthracite mining. Compared with December 1932, however, general em ployment was 11 per cent larger and wage disbursements 19 per cent greater. Among those occupations showing the largest percentage gains in employment and payrolls over last year are manu facturing, bituminous coal mining, crude petroleum, quarrying and nonmetallic mining, retail trade, and dye ing and cleaning establishments. Pub lic utilities and anthracite mining had the greatest declines from a year ago. Manufacturing. Demand for factory products has been seasonally quiet through December and early January, although lately some improvement has been reported in the sale of certain manufactures. The volume of unfilled INDUSTRIAL PRODUCTION PRiMARY DISTRIBUTION PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT TOTAL orders for finished goods, while show ing numerous increases since the middle of last month, has declined in the month but compared rather favor ably with a year ago, particularly in such important industries as metals, certain textiles, leather, paper and some of the building materials. The trend of prices for manufactured products generally has been steadily up ward since spring. In December the general level was about 19 per cent higher than the low point reached in April and was 12 per cent above that of a year before. Increases in some of the commodities such as textiles, hides and leather, and building materials were considerably greater than in these totals. There were also further ad vances in early January. Collections have declined since the middle of last month but compared well with those of the previous year. The supply of finished goods at most of the local factories has been reduced materially since November and about the middle of January appeared to be appreciably smaller than a year before. Stocks of raw materials also declined in the month but showed little change as compared with a year ago, except in the case of most textiles, leather and paper which registered increases. The movement of factory employ- _ SHIPMENTS OF MERCHANDISE__ AND MISCELLANEOUS COMMODITIES MANUFACTURING WHOLESALE DOLLAR SALES COAL MINING 1928 1929 Page Two 1930 1931 1932 1933 1929 1930 1931 1932 1933 ment and wage payments in this section Business Indicators has been downward since October, fol Philadelphia Federal Reserve District lowing a continuous rise between spring and late fall. In December the number Index numbers: percentages of the 1923-1925 average taken as 100 of factory wage earners and the amount of wages paid by the manufacturing in Adjusted indexes allow for the usual Adjusted for seasonal variation Not adjusted change which results from dustry of this district showed a further seasonal an uneven distribution of business decline of approximately 3 per cent between the months of the year. Percentage comparison from November. Compared with a Unadjusted indexes reflect merely the actual change which may or year ago, employment about the middle may not be up to the usual seasonal Dec. Nov. Dec. Dec. 1933 with To Dec. Nov. Dec. 1932 1933 1933 date 1932 1933 1933 of December was 16 per cent larger and expectations. with Month Year year the amount of wage disbursements was ago ago ago 33 per cent greater. In Pennsylvania, for example, the factory employment Industrial production................ 58.4 65.1 63.7p - 2.2 + 9.1 + 4.8 56.8 66.6 62. Ip Manufacturing—total.................... 57.1 index in December was 73 and that for 64.6 63.4p - 1.9 +11.0 + 5.3 55.4 66.0 61.7p Durable or capital goods . . . 32.9 45.1 44.9p - 0.4 +36.5 + 4.7 payrolls was 51, relative to the 1923-25 Consumers’ goods...................... 75.8 79.0 76.7p - 2.9 + 1.2 + 5.7 Metal products........................... 31.9 49.1 51.2 + 4.3 +60.5 +23.5 30.4 49.3 48.7 average. Estimated in absolute fig Textile products......................... 76.1 74.9 68.5p - 8.5 -10.0 + 11.8 74.4 76.5 66.7p Transportation equipment.... 33.8 40.6 41.7 + 2.7 +23.4 -30.3 34.0 38.9 41.6 ures, there were approximately 100,000 Food products............................. 67.1 64.1 63.3p - 1.2 - 5.7 - 4.5 66.2 64.4 62.8p more wage earners on the rolls of all Tobacco and products.............. 71.3 82.5 84.1 + 1.9 + 18.0 + 4.1 51.7 98.4 60.9 Building materials..................... 18.0 22.4 19.2 -14.3 + 6.7 - 7.8 16.3 22.3 18.1 factories in this state at the end of 1933 Chemicals and products........ 92.0 101.1 106.3p + 5.1 + 15.5 + 6.3 91.1 101.6 105.Op Leather and products............... 80.8 113.2 112.7p - 0.4 +39.5 + 19.5 78.9 108.2 108,6p than at the same time a year before, de Paper and printing.................... 78.<5 80.8 81.4 + 0.7 + 3.6 - 3.5 79.3 81.5 82.3 spite the recession in the last two Electric power output............... 170.4 179.0 174.1 - 2.7 + 2.2 + 2.3 182.3 186.2 186.3 Industrial use of electricity. . . 122.7 122.0 127.5 + 4.5 + 3.9 + 3.8 116.6 124.4 121.1 months of the year. Similarly, the esti Coal mining..................................... 72.1 70.9 66.9p - 5.6 - 7.2 + 0.5 71.6 73.5 66.4p Anthracite.................................. mated amount of weekly wage disburse 75.0 73.0 68.0 - 6.8 - 9.3 0.0 74.0 75.0 67.0 Bituminous.................................. 54.6 58.5 60. Ip + 2.7 +10.1 + 7.8 57.3 64.3 63. Ip ments was about $3,450,000 larger. Employment and wages—Pa. Operating schedules in Pennsylvania 3 8* 63.3 75.8p 72.9p — 3 4* 37.4 52.3p 50.5p factories have been curtailed noticeably Employe-hours (1927-28 = 100).. - 3.5* +2+2* + 10.9* 45.3 56.9 54 .9p General—12 occupations: since the high level in August, so that — 0 8* 98.9 110.5 109.6 the number of employe hours actually Payrolls (1932 = 100)................. — 1 2* + 19.2* - 2.9* 93.0 112.3 110.9 worked was 14 per cent below the peak Building and real estate Contracts awardedf—total......... 32.3 31.4 41.3 +31.5 +27.9 -33.8 27.8 30.5 35.5 for the year. Nevertheless, working Contracts awardedf—residential 12.7 12.4 10.4 -16.1 -18.1 -29.5 10.2 12.4 12.9 Permits for building—17 cities . . 7.1 3.4 17.9 +426.5 + 152.1 -40.2 time in December exceeded that of a 12.2 4.8 3.2 Mortgages recorded—Phila......... 32.9 10.8 36.2 13.0 year before by 21 per cent. The aver Real estate deeds—Phila.............. 78.8 50.7 77.2 54.8 Sheriff deeds (1930= 100)... 202.2 167.4 age hourly earnings of factory workers, Other deeds (1930= 100)......... 109.3 68.2 Writs for Sheriff sales—Phila.. 1090.3 931.8 1025.8 +io.i - 5.9 - 1.9 1112.1 1043.6 1046.3 which increased most sharply since Distribution August with the adoption of various Retail trade—sales.................... 57.2 56.6 62. Op + 9.5 + 8.4 - 5.8 93.6, 68.0 101,4p Retail trade—stocks. . . codes, were almost 25 per cent higher 57.6 59.9 62.4p + 4.2 + 83 54.8 69.0 59 .4p Wholesale trade—sales................. 56.9 62.8 63.8p + 1.6 +12.1 + 6.7 63.3 71.1 70.7p than in December 1932. Wholesale trade—stocks... . 63.5 59.7 61. 9p + 3.7 - 2.5 59.6 61.5 58.2p Life insurance sales................... 98.2 98.4 90.2 - 8.3 - 8.1 - 9.9 103.1 104.3 94.7 Preliminary reports for Pennsyl New passenger auto, registrations 67.0 71.0 66.3 - 6.6 - 1.0 +20.2 36.2 49.7 35.8 Freight car loadings—total......... 50.9 54.1 vania manufacturing industries indi 56.9 + 5.2 + 11.8 + 4.4 48.1 55.6 52.9 Mdse. & misc. (64.9% of total) 52.0 53.5 58.7 + 9.7 + 12.9 - 0.5 46.6 53.7 52,0 cate a further sharp decrease in em Coal (23.5% of total)............... 58.8 62.5 61.5 - 1.6 + 4.6 + 7.5 62.3 68.1 65.2 ployment, payrolls and working time Business liquidations Number....................... 36 7* 215.7 94.0 59.5 from the middle of December to the Amount of liabilities...................... —69 2* -82.6* -50.6* 210.9 119.3 36.8 middle of January, reflecting partly Payment of accounts Check payments........... 61.5 57.2 65.2 + 14.0 + 6.0 - 4.2 66.4 61.2 70.4 the usual seasonal tendency. Rate of collections (actual) Output of manufactured products in Retail trade.................... — 19* 4- 9 3* 25.8 26.9 26.4 Wholesale trade........... + 8.1* + 9.4* 58.8 59.5 64.3 this district has continued to decline, States following a sharp increase between Prices—United Wholesale (1926= 100). . . -0 4* 62.6 71.1 70.8 44.1 56.6 55.5 spring and summer. Our index of pro Foods................................ 58.3 64.3 62.5 Other commodities. . ductive activity, which is adjusted for + 0 4* 69.0 77.2 77.5 Retail food (1913= 100)........... — 2 0* 98.7 106.8 104.7 the number of working days and the Philadelphia................... 100.5 111.2 109.6 Scranton...................... - 0.6* + 7.8* - 1.8* 104.9 113.8 113.1 normal seasonal change, decreased from 65 in November to 63 per cent of the 1923-25 average in December. Per cent change from (000,000’s omitted Dec. Sept. Oct. Nov. Dec. While there were improvements in the in dollar figures) 1932 1933 1933 1933 1933 Month Year output of such important groups as ago ago metal and chemical products, these were more than offset by the unusual Banking and credit Federal Reserve Bank declines in the production of other lead Bills discounted.......................... $ 51 $ 29 $ 26 $ 25 $ 26 +4.0 -49.0 Other bills and securities......... 143 155 ing manufactures, principally building 163 +21.7 174 169 +3.0 Member bank reserves............. 127 126 128 122 - 0.8 126 +3.3 Ratio.............................................. materials and textile products. 58.4% 63.4% 62.4% 61.2% 61.7% +0.8 + 5.7 Reporting member banks The most striking increases in out Loans to customers................... $574 $498 $490 $488 +0.6 $491 -14.5 Other loans and investments.. 522 533 538 -1.8 put during December occurred in pig 560 550 + 5.4 Net deposits................................. 953 937 940 956 949 -0.7 - 0.4 Bankers’ acceptances outstand. . iron, steel, motor vehicles, automobile 12.3 14.3 16.3 15.6 15.5 -0.6 +26.0 parts and bodies, and petroleum prod * Computed from data unadjusted for seasonal variation. p—Preliminary ucts. The most noticeable among the T 3-month moving daily average. r—Revised. Page Three INDUSTRIAL FUEL AND POWER BUILDING CONTRACTS PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT ELECTRIC POWER '''USED BY INDUSTRY TOTAL FUEL OIL—^ — OUTPUT RESIDENTIAL BITUMINOUS COWL- OUTPUT 1928 1929 1930 1931 Source: F. W. Dodge Corporation unusual decreases occurred in silk manufactures, carpets and rugs, under wear, cement, lumber and its products, sugar refining, paper and wood pulp, leather, explosives, coke, and iron cast ings, as shown by the table on the last page of this review. Compared with December 1932 the level of factory production was 11 per cent higher despite the contraction of activity in the last five months of the year, all manufacturing groups except textile and food products sharing in this increase. Although factory output in the first quarter of 1933 reached the lowest rate of operation in many years, the average for the year was about 5 per cent higher than that for 1932, re flecting chiefly extraordinary increases that occurred from the beginning of April to the end of July and were partly maintained in subsequent months. Output of electric power in this dis trict made smaller than usual gains from November to December, so that the seasonally adjusted index declined almost 3 per cent but continued 2 per cent above the level of last year. Con sumption of electrical energy by indus tries held up better than usual and when allowance is made for the normal seasonal change it showed an improve ment of nearly 5 per cent. Compared with 1932, local industries used 4 per cent more electric power. There was also a seasonal increase in the consump tion of electricity for residential and commercial purposes and in that of street cars and railroads. The sharpest percentage decrease as compared with the previous year occurred in the pur chases by municipalities. Coal. Demand for anthracite fuel has been stimulated considerably by colder weather for several weeks at the turn of the year. Reports indicate that cur rent supplies have been adequate de http://fraser.stlouisfed.org/ Page Four Federal Reserve Bank of St. Louis 1932 1928 1929 1930 1933 Source: Department of Commerce, Bureau of Mines spite labor difficulties prevailing chiefly in the northern or Wyoming region and to some extent in the Lehigh field. Shipments of hard coal declined in De cember, following a small increase in the preceding month, and were nearly 7 per cent smaller than a year ago; for 1933 as a whole deliveries showed only a small gain over 1932, when the ton nage carried by rail was the smallest in the previous five years. Output of col lieries in December declined more sharply than usual, but increased in early January. Total output in 1933 was only slightly less than in 1932. Demand for Pennsylvania bitumi nous coal has increased in recent weeks, owing chiefly to larger takings by some industrial establishments. Shipments showed a pronounced decrease in De cember and with one exception were the smallest for that month in the past five years. Colliery output showed an unusually small decline in December and was the largest for that month since 1930. Production in 1933 was nearly 8 per cent larger than in 1932, reflecting a higher level of industrial activity. In the first two weeks of January pro duction increased. Average prices of soft coal throughout the country changed little from November to De cember but were over 12 per cent higher than a year ago. Building. Activity in the construction and contracting industry, exclusive of projects undertaken primarily as re employment measures by the Federal government, decreased sharply between the middle of November and the mid dle of December and continued at no ticeably lower levels than in recent years. Reports from some 1100 con tractors in Pennsylvania showed de creases in this period of 12 per cent in employment and 14 per cent in pay rolls and working time. The most pronounced curtailment occurred in building operations and in the con struction and maintenance of streets and highways. As compared with De cember 1932, the general level of em ployment was only about one per cent lower, while wage payments showed a decrease of 17 per cent. Awards of building contracts showed an unusually large decline in December, following an upward trend for several months. This reduction in the total dollar volume of awards reflected an exceptionally sharp decrease in con tracts let for dwellings, factories and commercial buildings, which more than offset a further expansion in the value of awards for public works. Since mid summer, contracts let for residential construction have been decreasing; the value of public work projects, on the contrary, has been increasing very sharply since August, reaching an especially large volume between the middle of November and the middle of January, a period during which the Civil Works Administration was the most active. Of the $33,750,000 awarded for this type of construction in the Middle Atlantic States during 1933, over 55 per cent, for example, was let in the last three months of the year, and most of this took place in the last month and a half of the year. This extraordi nary increase in public works was not sufficient, however, to offset the de creases in private construction so that the total value of contract awards in 1933 was 34 per cent less than in 1932 and was the smallest in recent years. Estimated cost of proposed building under permits issued in 17 cities of this district, which had been declining for four months, showed an exceptionally sharp rise in December and was the largest for that month since 1929. A large part of this gain may be attributed EMPLOYMENT PAYROLLS AND WORKING TIME PENNSYLVANIA COST OF LIVING PERCENT PERCENT 200 PHILADELPHIA EMPLOYMENT UNITED EMPLOYE HOURS STATES DEC. 1914 —100 1929 1930 1932 1933 Source: United States Bureau of Labor Statistics to the activity on civil or public works projects. The value of permits; issued in 1933, was 40 per cent smaller than in 1932 and was considerably below that of any previous year. The movement of commodities by railroad freight in this section has been well sustained except for reduced shipments of coal. Loadings of merchandise and miscellaneous commodities, which con stitute about 65 per cent of total ship ments, showed smaller than usual de clines from November to December, so that the seasonally adjusted index number rose 10 per cent. Compared with a year ago, total freight car load ings were 12 per cent larger, owing principally to increased deliveries of finished and semi-finished products. Transportation of goods by motor freight, delivering merchandise over short distances, showed seasonal in creases during December, as indicated partly by the increased number of truck drivers and their earnings. Retail trade sales of representative department, apparel, shoe and credit stores, combined proportionately, were 49 per cent larger in December than in November; when allowance is made for the number of business days and the usual seasonal change, this increase indicated an improvement of about 10 per cent, most of which occurred in the last two weeks of the month. Depart ment stores in Philadelphia, men’s ap parel stores outside Philadelphia, women’s apparel and credit stores showed the most pronounced better ment, while the sale of men’s apparel in Philadelphia failed to measure up to the customary gain and that of shoes just about equaled the usual seasonal rate of increase. The seasonally adjusted index of re Distribution, trade and service. tail trade sales in this district rose to 62, relative to the 1923-25 average, as compared with 57 in December 1932, a gain of about 8 per cent. All lines shared in this increase, except shoes which showed a decline of one per cent from a year before. In spite of the increased level of sales since early summer, the dollar volume of total retail trade sales in 1933 was almost 6 per cent smaller than in 1932. Prices of general mer chandise have advanced almost steadily since April. Retail business in January, while showing a seasonal let-down, continued more active than a year ago. Prelimi nary reports indicate that clearance sales in January this year were ahead of the dollar volume in the same period of 1933, reflecting in part higher prices and in part more active demand. Wholesale and jobbing trade has been fairly well maintained since the middle of last month, and prices con tinued steady although there have been some further advances in a number of instances. Sales of eight leading wholesale lines in the aggregate showed smaller than the usual declines from November to December so that the figures, when adjusted for the custo mary seasonal change, showed an im provement of about 2 per cent. Com pared with December 1932, total sales were 12 per cent larger, dry goods and shoes alone registering decreases. For the year as a whole, dollar sales ex ceeded those of 1932 by 7 per cent. This favorable comparison reflects the influ ence of advancing prices since spring and shows extraordinary increases in buying between spring and late summer. The supply of merchandise at repre sentative mercantile establishments in the aggregate was reduced considerably during December, but the total stocks at the end of that month showed 4 per cent less than the usual rate of decline for both retail and wholesale. Com pared with the previous year inven tories at retail were 8 per cent larger while those at wholesale establishments were 2 per cent smaller. The rate of stock turnover at retail was 2 per cent higher and at wholesale almost 9 per cent more active in 1933 than in 1932, indicating a more rapid movement of goods, particularly since early spring. Payment of accounts at retail stores generally continued at a higher rate than in December 1932, and the decline from November to December appears to be smaller than customary. Whole sale collections increased 8 per cent from November to December, which was about the usual rate of gain for that period and were about 9 per cent more prompt than a year before. Settle ment of accounts at both retail and wholesale increased rather sharply since spring so that the rate of payment in subsequent months was higher than in the corresponding period of 1932. Sales of new passenger automobiles, as measured by registrations, declined 28 per cent from November to De cember, which decline was almost 7 per cent greater than was to be expected. This drop is partly attributable to the fact that manufacturers released their new models from one to three months later than has been their usual practice. A decline of one per cent from a year ago may also be ascribed to this delay. For the year as a whole, however, about 20 per cent more units were sold than in 1932, exceptional increases taking place between spring and fall. Life insurance sales, while rising ap preciably during the summer months When seasonal changes are taken into consideration, were 10 per cent smaller in 1933 than in 1932. The decline in December was substantially larger than Page Five FEDERAL RESERVE BANK OF PHILADELPHIA RETAIL TRADE SALES PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS PERCENT SHOE STORES MEMBER BANKS’ —RESERVE DEPOSITS APPAREL <' I STORES DEPARTMENT STORES BILLS DISCOUNTED 1930 1928 193 I usual; total sales also were 8 per cent below those in December 1932. General commercial activity is indi cated by the movement of business travelers. Changes in this movement are shown by the accompanying table giving data on the operations of selected commercial hotels. Figures are based on original reports from 24 leading hotels in 13 cities of this district, whose revenue in 1933 totaled about $6, 100,000. Per cent change compared Hotel business Philadelphia Federal Reserve District Dec. with Nov. 1933 -0.1 Occupancy..................... -11.1 % of capacity used Dec. 1932.. 35.8 Dec. 1933. . 38.9 Nov. 1933.. 43.4 Revenue from: Guest rooms............... -14.5 Food............................. - 5.7 Other sources............. +67.6 Total revenue. . . - 4.3 Dec. 1933 with Dec. 1932 1933 with 1932 - 0.2 + 8.2 - 6.4 - 3.4 - 0.7 +85.2 -17.8 -16.8 -11.6 +14.5 -15.0 The return of money from circulation and substantial gains in transactions with other dis tricts in the past month enabled the banks to meet large withdrawals of gov ernment funds and to raise their reserve deposits to the highest point in six months. Borrowings from this bank also show a small reduction. Government operations have con tinued to be an important factor in the banking figures of the district. As in the fall months, Treasury receipts were much larger than local disbursements, though the latter were greater than a year ago. In the five weeks ending on January 24 the total receipts of the Treasury, including 56 millions with drawn from, depositary banks here, ex ceeded disbursements in the district Digitized for by FRASER 47 millions, enabling it to make Banking conditions. 1932 1934 1933 large transfers to other sections of the country. Included in the receipts was over 7 millions from, this bank, representing its payment for stock of the Federal De posit Insurance Corporation. The Banking Act of 1933 provided that the reserve banks should subscribe to the stock of the corporation in an amount equal to one-half of the surpluses on January 1, 1933, and that payment for one-half of the stock should accompany the subscription. This payment ac counts for the greater part of the de crease in the unexpended capital funds of the bank shown in the table below. Despite the sums taken from the market by the Treasury, the banks made a reduction of 3 millions in their borrowings from this bank and added 16 millions to reserve deposits, increas ing them to the highest point since Sep tember 1931 with the single exception of one day in June of last year. This was made possible by a favorable bal ance of 34 millions in the settlements of commercial and financial transactions with other districts and by the redeposit of currency. Receipts of currency and coin exceeded amounts paid to banks and others by 23 millions; this seasonal inflow was much the same as a year and two years ago, but included gold coin and gold certificates returned in con formity %vith the order of the Secretary of the Treasury. The combined federal reserve note and deposit liabilities of the bank changed little, but gold reserves and other cash decreased 7 millions, owing mainly to an excess of outbound trans fers for the government oyer amounts gained in the other settlements; the re sult was a decline in the ratio of the bank from 62.4 to 60.5 per cent. Net demand and time deposits at the reporting member banks increased 31 millions, reflecting the return of cur rency and, possibly, some influx of funds from other districts. Govern ment deposits, however, declined 43 millions. The banks reduced their holdings of United States securities by 30 millions and other securities de creased 4 millions, but balances to their credit elsewhere showed an increase which was 7 millions larger than the rise in amounts due to banks, and 15 millions was added to loans to the Dec. 20, 1933 Jan. 24, 1934 Reporting member (000,000’s omitted) Loans to customers: On stocks and bonds $ All other..................... Loans to open market. United States securities Other securities............ 224 247 34 262 237 $ 232 258 19 292 241 Jan. 25, 1933 $ 282 267 8 232 252 Total loans and investments............ Net demand deposits.. Time deposits............... Government deposits . $1,004 615 304 20 $1,042 590 298 63 *1,041 640 291 20 Amounts due to banks 105 170 76 148 154 216 RESERVE BANK CREDIT AND THE FACTORS WHICH AFFECT IT Philadelphia Federal Reserve District Dec. 21 to Jan. 24, inclusive—in millions of dollars Uses of funds Sources of funds Currency demand............................................ Reserve bank credit extended in this dis Member bank reserve deposits.................... trict ..................................... ..................... . • • • - 2.9 Special and “Other” deposits at reserve Commercial and financial transactions bank.............................................................. .. (chiefly interdistrict)................................... +34.4 Unexpended capital fundsof reserve bank Treasury operations........................................ -47.1 —23.1 +16.2 — 0.4 — 8.3 Total..................................... ’.................... -15.6 Total........................................................... -15.6 Note: This table gives, in balance sheet form, a summary of the banking changes which have had an in fluence on the amount of reserve bank credit in use in the district. Factory employment and payrolls in Pennsylvania CURRENCY DEMAND PHILADELPHIA FEDERAL RESERVE DISTRICT t MILLIONS Employment* (Indexes are percent ages of the 1923-25 average taken as 100. Total and group indexes are weighted proporti onately.) Dec. 1933 index Jrer cent change com pared with Dec. 1932 All manufacturing Iron & steel & their Non-ferrous metal w Transportation Textiles and clothing 1932 * 1933 open market; open market loans in clude boug-ht com mercial paper and bankers’ accept ances and loans on securities to bro kers and dealers in New York City. A decline in loans to customers totaled 19 millions, some part of which may have been due to amounts charged off at the end of the year, when such readjustments usu ally are made. 1934 Stone, clay and glass Lumber products.... Chemical and allied Federal Reserve Bank of Philadelphia (Dollar figures in millions) Changes in— Jan. 24, 1934 Bills discounted . . . $ 23.5 Bills bought............ 7.0 United States secu rities ...................... 167.1 Other securities___ 0.5 Total bills and securities... $198.1 Fed. res. note cir culation ................ 227.0 Fed. res. bank note circulation........... 19.3 Member bank re serve deposits. . . 146.0 Special deposits— member and non member banks . . 8.5 Government de posits .................... 0.9 Foreign bank de posits .................... 0.4 Gold reserves and other cash........... 232.1 Ratio......................... 60.5% Paper and printing. . Five weeks One year -$ 2.8 - 0.8 —$24.2 + 3.9 0 0 + 35.1 - 0.5 -$ 3.6 +*14.3 - 9.7 - - 2.9 + 19.3 0.7 + 16.2 + - 0.7 4- 8.5 - 5.8 + 0.5 0 - 3.1 - 7.0 + 1.9% - » Allentown............. Altoona.................. Harrisburg........... Johnstown............ Lancaster. . . Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre. . . Williamsport........ Wilmington.......... \ ork...................... Others: Cigars and tobacco Rubber tires and Musical instru- Wage payments +10.1 + 1.6 + 9.9 +24.4 +32.0 +26,1 + 8.8 +13.1 +33.7 + 0.4 +32.7 +26.5 + 18.6 + 40.2 + 3.1 + 40.3 +142.1 + 61.9 + 34.3 + 36.3 + 15.7 + 44.5 + 7.0 + 31.7 + 35.7 + 29.9 Building permits (value) Debits 28.6 6.4 72.7 488.9 37.3 55.3 + 28.1 + 240.4 65.6 95.6 _ 132.8 +5 783.4 + 124.0 -10.4 + 1.8 -21.4 -25.9 -13.1 + 4.4 -15.9 - 2.9 - 7.4 -12.3 -17.7 +20.2 + 0.7 — + + + Retail trade sales +10.6 +26.8 + 5.0 +12.7 + 9.0 + 6.9 + 5.9 + 3.6 + 8.8 +10.6 Dec. 1932 Nov. 1933 T + + - 1.5 4.0 1.5 0.5 1.9 3.2 0.3 4.3 2.3 8.7 6.9 2.3 7.8 + + + - 1.1 8.5 i.i 21.5 0.1 4.2 0.7 1.7 3.7 17.1 16.2 2.5 11.8 77.0 36.6 26.2 + 478.7 + 32.5 21.9 92.1 + 37.3 + 10.5 42.1 +2,718.7 +3,651.0 — 57 8 +13.1 +23.3 +18.5 + 0.6 + 0.2 +20.7 + 2.7 +17.9 +42.2 + 7.9 + 4.4 +45.4 +11.3 +35.0 — 3 4 3 5 +76.4 + 0.9 - 0.5 82.4 +25.8 - 1.7 65.3 +38.1 - 0.5 56.6p 91.6 91.5 91 9 97.7 +18.2 + 2.7 + 8.9 -16.4 +12.9 + 14.1 + 14.9 +14.6 + 0.8 +19.3 66.2 53.3 - 0.9 - 7.1 - 5.6 -12.8 - 3.8 34.7p 67.0 67.7 63.6 78.6 -12.8 -12.1 -16.1 - 1.1 + 4.4 -12.7 -13.1 - 8.0 - 1.3 +20.8 - 6.1 30.4 +32.9 -10.9 32.6 +41.4 - 4.1 +32.0 -15.1 — 5.5 -22.0 91.7 +33.1 + 0.9 72.4 +42.8 - 0.3 + 5.1 88.7 90.6 89.1 + 18.0 + 1 7 72.1 + 11.4 + 0.4 73.2 + 5.8 + 2.8 76.7 +45.7 + 5.3 +11.6 + 1.7 + 8.3 + 4.4 + 4.3 — 3.3 + 2.2 62.5 + 7.2 - 1.1 43.7 +16.8 - 5.6 -11.1 84.1 +28.0 - 8.6 47.7 - 9.3 -29.5 -29.7 40.6 + 7.4 - 2.6 37.5 +40.4 - 2.1 - 2.3 * Figures from 1,745 plants, t Figures from 1,281 plants, p—Preliminary. General indexes of employment and payrolls in Pennsylvania Employment Occupation (1932 = 100) Dec. 1933 index Manufacturing.................... Anthracite mining.............. Bituminous coal mining... Building and construction. Quarrying and non-metallie mining.......................... Crude petroleum producing Public utilities..................... Retail trade................. Wholesale trade.................. Hotels....................... Laundries............................ Dyeing and cleaning......... Payrolls Per cent change compared with Dec. 1932 Nov. 1933 Dec. 1933 index Per cent change compared with Dec. 1932 Nov. 1933 109.6 113.2 87.2 116.7 79.9 + 10.8 + 15.2 - 12.6 + 17.9 - 1.0 - 0.8 110.9 - 3.8 124.1 -10.6 82.7 + 7.7 149.4 -12.4 60.4 +19.2 +35.0 -21.0 +54.2 -16.7 - 3.4 - 7.2 +11.8 -13.8 94.1 213.3 91.3 134.0 102.3 97.2 93.0 97.7 + 9.2 +105.9 - 4.4 + 16.0 + 5.4 + 2.2 - 2.6 + 8,4 -10.3 87.8 - 0.4 168.6 - 0.0 85.4 +15.1 124.1 + 0.1 94.7 + 1.3 88.1 - 1.6 89.1 - 3.7 90.5 +22.1 +69.4 - 6.9 +14.7 + 0.2 - 2.4 - 0.1 +14.4 — 19 0 - 7.8 + 0.4 +13.3 + 0.4 + 3.8 — 0 8 - 8.6 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUFACTURING AND NON-MANUFACTURING INDUSTRIES AND SERVICES PERCENT + 14.1 Digitized for* FRASER Area not restricted to the corporate limits of cities given here. +68.6 +63.6 +56.7 +65.5 +58.6 +52.4 +52.2 +41.3 +54.4 +58.5 Nov. +25.4 - 2.6 42.7 December 1933 from November 1933 Allentown............. Altoona................. Harrisburg........... Johnstown............ Lancaster............. Philadelphia......... Reading................. Scranton ............... Trenton................. Wilkes-Barre. . . Williamsport........ Wilmington.......... Y ork....................... Per cent change Dec. com- +15.2 - 3.8 50.5 General index number Employ ment Per cent change com pared with 72.9 6.2 0.6% M anu facturi ng Dec. 1933 index 60.3 8.2 Percentage change—December 1933 from December 1932 City areas* Leather and i ts Nov. 1933 Employehours f Payrolls * EMPLOYMENT RAVROLLS +67.5 1932 1933 1934 Index numbers of individual lines of trade and manufacture OUTPUT OF MANUFACTURES PHILADELPHIA FEDERAL RESERVE DISTRICT steST Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 Adjusted indexes allow for the usual seasonal change which results from an uneven distribution of business between the months of the year. Not adjusted Adjusted for seasonal variation LOCOMOTIVES AND CAR5 Percentage comparison Unadjusted indexes reflect merely the actual change which may or may not be up to the usual seasonal expectations. Dec. 1932 Nov. 1933 Dec. 1933 Dec. 1933 with Month ago Year ago + 9.5 + 6.8 - 0.8 +17.9 0.0 +19.7 + 8.4 + 7.8 + 11.0 + 5.7 - 1.0 +15.4 + 4.2* + 8.3 - 2.6 + 7.1 - 0.7 - 1.1 - 2.2 + 5.3 - 2.4 - 4.4 +22.8 +22.6 To date with year ago Nov. 1933 Dec. 1932 Dec. 1933 Retail trade Sales Total of all stores . . Department......... Men’s apparel---Women’s apparel. Shoe........................ Credit.................... 57.2 55.3 40.5 82.2 61.4 52.1 52.0 73.7 60.8 50.2 62 .Op 59.6 51.6p 86.9p 60.8p 60. Ip Stocks of goods Total of all stores... Department......... Men’s apparel---Women’s apparel. Shoe........................ Credit.................... 57.6 52.1 54.3 84.4 56.4 60.5 59.9 57.3 54.1 90.9 55.2 60.4 62.4p 55.8 53.7p 88.9 53.9 74.2p 56.6 Rate of stock turnover 12 months (actual, not indexes) - 68.0 101.4p 67.5 105.2 57 .5 83.8p 88.7 130.6p 64.4 70 ,0p 64.3 92.5p 5.8 93.6 5.1 97.6 2.8 75.7 4.9 123.5 79.8 7.1 9.8 80.3 54.8 69.0 49.6 67.1 55.1 61 .8 77.8 111.3 55.8 59.1 56.3 68.2 + 1.9* 59.4p 53.0 54 ,6p 82.0 53.4 69.0p WOOLENS AND WORSTEDS HOSIERY 3.84 3.77 Wholesale trade Sales Total of all lines......... Boots and shoes. . . Drugs....................... Dry goods............... Electrical supplies. Groceries................. Hardware................ Jewelry.................... Paper........................ 56.9 56.4 81.9 31.6 43.4 80.0 32.4 28.1 51.4 Stocks of goods Total of all lines. Drugs....................... Dry goods............... Electrical supplies. Groceries................. Hardware................ Jewelry.................... Paper........................ 62.8 52.5 81.7 33.6 46.4 91.9 40.6 29.8 55.7 63.8p 56.0p 84. Op 29.5p 45.2p 96.8 38.6p 30.4p 56.7p +12.1 + 6.6 - 0.7 + 0.5 + 2.6 - 7.8 -12.2 - 6.6 + 2.0 - 2.6 + 4.1 + 5.3 +21.0 + 9.9 - 4.9 +19.1 -10.7 + 2.0 + 8.2 -10.7 + 1.8 +10.3 + 5.5 + 1.6 + 6.7 + 37 + 54 + 2.6 + 17 4 37.4 34.0 34.9 59.3 58! 7 60!6p + 3.2 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---- . . . . . . . . . . . . . . . . . 11.4 20.9 26.8 43.0 29.2 42.0 30.0 22.1 45.9 68.1 13.3 15.2 26.4 53.5 16.4 14.9 95.6 100.9 103.4 109.8 45.3 40.0 32.6 35.0 36.6 41.1 108.1 89.2 120.2 102.6p 19.3 29.4 20.2 29.3 20.4 10.1 27.3 48.1 38.8 31.8 64.4 18.4 57.6 14 .0 97.9 92.2 40.7 34.2 33.1 90.3 92.3p 13.9 28.2 17.4 96.2 88.9 86.6 43.2 64.5 57.1 23.4 29.2 29.3p 69.7 81.9 83.5 49.9 60.7 55.2 84.6 84.9 86.7 78.0 113.4 122.0 83.4 113.1 103.91 72.4 53.5 79.1 56.9 64.7 68.0 137.7 138.7 150.51 54.8 75.2 75.5 +30.6 +11.9 - 7.6 + 6.0 - 5.4 +38.3 + 7.7 - 6.0 - 3.0 -16.0 + 1.8 - 2.3 -19.5 + 1-2 ^10.0 -28.0 - 3.8 -14.7 + 0.2s*1 - 2.6 -11.5 + 0.3 + 2.0 - 9.1 + 2.1 + 7.6 - 8.1 - 8.5 + 5.1 + 8.5 + 0.4 * Computed from data unadjusted for seasonal variation. Page Eight +139.5 +79.5 +32.9 +43.9 +40.3 +21.1 + 118.2 -14.6 + 2.4 -10.8 -10.2 + 4.9 - 9.6 -16.5 -23.2 -52.7 +39.6 +72.3 - 1.9* -10.0 +32.2 +25.2 +19.8 +10.6 + 2.5 +56.4 +24.6 +35.3 +19.5 + 9.3 +37.8 70.7p 53.2p 85.7p 30.7p 75 .lp 97.8 42 .lp 62 .4p 53,9p LUMBER PRODUCTS 59.6 61.5 58.2p 104.1 113.6 111.5 32.5 33.0 30.4 76.4 72.8 70 .4p 69.7 76.1 69.7 65.9 59.5 58.7p 47.4 48.0 44 4p 56.9 58.7 58.2p + 7.1 - 6.7 - 7.8 0.0 -11.0 - 6.4 + 2.2 Rate of stock turnover 12 months (actual, not indexes) 63.3 71.1 53.6 55.7 83.5 84.2 32.9 43.4 72.1 60.3 80.8 100.2 35.3 45.1 57.7 42.6 48.8 58.5 + 8.5* 5.18 +47.8 +36.8 + 19.7 + 9.3 + 8.3 -48.1 + 6.9 -26.1 -39.5 +13.8 +22.8 + 7.4 - 4.5 + 3.0 +18.9 -27.0 +16.2 0.0 - 1.3s* + 1.4 - 5.5 + 3.4 + 4.7 + 5.9 - 4.7 +18.6 +20.5 +13.3 + 3.9 + 3.7 +26.6 11.3 25.2 27.2 21.2 44.5 12.0 25.9 16.4 100.4 105.5 42.2 35.0 38.1 104.9 119.0 24.1 19.6 9.9 83.9 104.1 28.1 23.6 50.2 50.4 85.4 66.3 90.9 53.0 55.2 137.4 53.2 p—Preliminary. 5.62 21.1 41.3 42.8 27.9 72.2 11.6 49.2 13.9 100.9 110.9 43.5 36.9 41.9 101.7 103.61 18.9 29.0 20.6 82.1 98.7 41.9 31.9 98.3 60.7 85.7 106.6 109.7 79.1 66.6 139.5 72.2 27.0 45.2 36.1 30.5 62.5 14.5 56 .4 14.0 102.8 94.0 38.0 36.6 34.4 87.6 91.4p 11.4 27.4 17.1 82.3 93.5 37.1 30.5p 60.1 55.8 87.6 103.7 113.2p 71.7 66.0 149.8p 73.2 PETROLEUM REFINING CI0AR5 r—Revised. 1
@FedFRASER