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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA 1 RESERVE DISTRICT FEBRUARY i, 1937 FEDERAL RESERVE BANK OF PHILADELPHIA Business and Banking Conditions in the United States The Board’s index of industrial pro duction showed a sharp advance in December after allowance is made for the usual seasonal changes. There was a marked expansion in employ ment and payrolls and retail trade con tinued at high levels. Production and employment. Actual volume of industrial production showed little change from November to December, at a time when a sharp seasonal decline is usual, and the Board’s adjusted index advanced from 114 to 121 per cent of the 1923-1925 average. There was a further rise in activity at textile mills to the highest level on record and output of other non-durable manufactures was main tained. Declines in production of steel and lumber were smaller in December than are usual in that month. At automobile factories there was a marked increase in output. In the first three weeks of January activity at steel mills increased somewhat, but there was a decline in assemblies of automobiles as a result of shutdowns occasioned by strikes. Coal produc tion declined seasonally from Novem ber to December, while output of crude petroleum increased, contrary to sea sonal tendency. Value of construction contracts awarded, according to figures of the F. W. Dodge Corporation, showed a seasonal decrease in December. Factory employment expanded further between the middle of Novem ber and the middle of December, con trary to the usual seasonal movement. Increases were general among the durable goods industries, with the largest advances at plants producing automobiles and machinery. In the non-durable goods industries there were marked increases in the number employed at textile mills and at shoe factories. Reflecting principally the higher level of employment and ad vances in wage rates, factory payrolls increased sharply in December, par ticularly at steel mills and in the tex tile industries. In retail trade, em ployment rose more than seasonally and in most other non-agricultural pursuits there were increases, when allowance is made for seasonal changes. Distribution. Retail sales in Decem ber increased seasonally at department FACTORY EMPLOYMENT AND PAYROLLS INDUSTRIAL PRODUCTION stores and by more than the usual seasonal amount at variety stores and mail order houses serving rural areas. Freight car loadings showed a smaller decrease than is usual in De cember, and the Board’s seasonally adjusted index advanced further. Commodity prices. Wholesale prices, for both industrial and agricultural commodities, continued to advance in the second half of December and the first half of January. There were marked increases in prices of indus trial raw materials, particularly nonferrous metals, lumber, hides, and MEMBER BANK LOANS AND INVESTMENTS Wednesday figures for reporting member banks in 101 leading cities, September 5, 1934, to Jan uary 20, 1937. Loans on real estate and loans to banks excluded.] WHOLESALE PRICES Employment Poyrolls. Form Products 1929 Index of physical volume of production, ad justed for seasonal variation. By months, Jan uary 1929 to December 1936. 1930 1935 1936 Indexes of number employed and payrolls, without adjustment for seasonal variation. By months, January 1929 to December 1936. In dexes compiled by the United States Bureau of Labor Statistics. Indexes compiled by the United States Bureau of Labor Statistics. By weeks, 1932 to date. Latest figure is for week ending January 16, 1937. Page One the Commodity Credit Corporation last July and in part repayment of other loans, which had increased sharply in preceding weeks. Holdings of government obligations declined further at New York City banks but increased at banks in other leading cities. Demand deposits decreased at the turn of the year, but thereafter increased somewhat, reflecting chiefly the return of currency from holiday use. The rate on 90-day bankers’ accept ances was raised 1/16 of one per cent wool, and prices of a number of fin ished goods, such as steel products, paper, and textiles also advanced. Since the middle of January there has been a decline in prices of commod ities traded in on the organized ex changes. Bank credit. Loans and investments of reporting member banks in leading cities declined in the first three weeks of January, as a result of reductions in commercial loans and in loans to brok ers. The decrease in loans reflected in part the retirement of notes issued by on January 13 and now stands at 34 of one per cent. Market discount rates on Treasury bills have also increased, with bills offered in the week ending January 16 selling at a discount of over l i of one per cent, as compared / with a rate of about 1/10 of one per cent early in December. Excess reserves of member banks increased from $1,880,000,000 to $2,130,000,000 in the four weeks end ing January 20, reflecting largely the post-holiday return flow of currency from circulation. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial production and employ ment in the Philadelphia Federal Re serve District have continued at relatively high levels and the usual seasonal recessions at the turn of the year have been conspicuously absent. After four years of upward movement, the output of manufactures and mines in December reached over 98 per cent of the 1923-25 average or the highest since May 1930. The value of build ing contracts awarded and the rate of operation on these contracts also ex panded. Shipments of industrial and agricultural commodities lately have been affected by floods to a consider able extent in some instances. Employment and payrolls in manu facturing and non-manufacturing in dustries increased in the month and were substantially larger than a year ago. Over the past few years the ris ing trend in wage payments has been especially pronounced. Similarly, in come of farm labor and of farmers from the sale of their products has expanded, reaching in 1936 the highest amount in several years. The value of retail trade sales in December increased somewhat less than usual from November but con tinued considerably larger than in re cent years. Preliminary reports for early January show' favorable changes as compared with a year ago. Activ ity at wholesale establishments has been well sustained. Sales of new' pas senger automobiles last year W'ere the largest since 1929; the present strike in the automotive industry apparently is having a definite influence on the supply of new cars. Activity in most other lines for which current informa tion is available has continued quite favorable since last fall. Commodity prices advanced further and at present are at the highest level for the recovery period. The sharpest increases during the past four years occurred in raw materials. The table following gives a comparison of busi ness activity in 1936 with high and low levels. Philadelphia Federal Reserve District 1929 1 Industrial production.............. Employment, (factory)............ Wage payments (factory).... Building contracts.................... Freight car loadings................. Retail trade sales...................... Passenger automobile sales. . PHILADELPHIA FEDERAL RESERVE DISTRICT - FARM CASH INCOME (pA, N. J., AND DEL.) PRODUCTION EMPLOYMENT INDUSTRIAL PAYROLLS PAYROLLS DigitizedPage Two for FRASER 1933 1934 86 83 77 56 70 79 124 INCOME PER CEN1 200 1932 1936 63 64 42 34 52 61 51 Activity in manu facturing plants generally has been sustained at an unusually high level. Demand for finished goods has been strong and the volume of unfilled or ders has expanded further, reflecting in part buying in advance of antici pated price increases. Purchases of raw materials also reflect current de mand for finished products. Reports indicate that future commitments have been more prevalent than was the case for some time. Current deliveries of goods have been hampered by floods. Further price advances in most commodities are quite evident from the reports to this bank and from data compiled by the Bureau of Labor Sta- PERCENT (ADJ. fOR SEAS. VAR.) 1932 110 99 103 136 106 100 131 Manufacturing. MANUFACTURING ACTIVITY PHILADELPHIA FEDERAL RESERVE DISTRICT Annual average index: 1923-25=100 (pa.) 1933 1934 1935 PERCENT tistics. The index of this Bureau which comprises manufactures includ ing fuel and lighting rose to 83.1 per cent of the 1926 average on January 23 as compared with 82.4 per cent a month ago and 79.0 per cent on the same date last year. Factory employment and payrolls were exceptionally well maintained at the end of the year when seasonal recessions are to be expected. Ex pressed in terms of the 1923-25 aver age, the December index number of employment was 88, or 11 per cent higher than a year ago. The payroll index reached 90, or 31 per cent above that of last year. Virtually all parts of this district shared in this improve ment during the month and as com pared with last year. Estimates show that all manufactur ing industries in Pennsylvania about the middle of December employed ap proximately 950,000 wage earners and their wage disbursements averaged $23,220,000 a week. For the year 1936 as a whole these industries em ployed on the average about 890,000 wage earners and the total amount of wages paid in that year exceeded $1,000,000,000. Reports also show that in the last quarter of the year wage increases were more pronounced than for some time, the computed average rate of such increases as were made being around 10 per cent. This was espe cially noticeable in December. An other development was a rather exten sive payment of bonuses at the end of the year; in some instances the amounts involved approximated one week’s wage. There was a marked improvement in output of manufactures during De cember. This bank’s index of pro ductive activity, which is adjusted for seasonal variation, rose to 96 relative to the 1923-25 average as compared with 91 in the previous month and 78 a year before. The average rate of production was 15 per cent higher in 1936 than in 1935 and the rate of in crease was considerably more pro nounced than in a number of past years. The sharpest expansion from November to December occurred in consumers’ goods, although compared with a year earlier the relative gain in the output of durable goods was much greater. For the year as a whole pro duction of consumers’ goods was 4 per cent larger, while that of durable goods including metal products, trans portation equipment, and building ma 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. I'nadjusted indexes reflect merely the actual change which may or may not Dec. Oct. Nov. Dec. be typical. 1935 1936 1936 1936 Dec. 1936 from Month Year ago ago Industrial production................... 81 r 90 r Manufacturing—total....................... Consumers’ goods......................... 78 62 91 71 r 91 62 71 97 29 115 137 83 71 r 72 r 65 415 93 91 89 93 100 92 88 77 98 48 r 128 126 91 72 r 70 86 r 461 98p 96p 89n 102p 109 104p 73 77p 111 49 127p 134p 94 77p 7f)p 88 487 232 233 181 89 86 92 96 90 91 74 99 47 121 122 93 54 r 51 r 78 459 Metal products............................... Textile products............................. Transportation equipment.......... Food products................................. Tobacco and products.................. Building materials......................... Chemicals......................................... Leather and products.................... Paper and printing........................ Coal mining......................................... Anthracite........................................ Bituminous...................................... Crude oil.............................................. Electric power Output.............................................. 210 232 Sales, totalt..................................... 207 231 Sales to industries!........................ 158 173 Employment and wages Not adjusted Per cent change 237 231 176 1936 from 1935 Dec. Oct. Nov. Dec. 1935 1936 1936 1936 78 76 94 93 95 93 95p 93p + 22 + 23 +14 +15 -1- 8 + 13 17 _ 0 + 14 + 0 0 + 6 + 4 + 8 + 9 + 2 + 6 + + + + + + + +37 68 r 98 100 97 + 2 88 94 85 +63 62 87 79 + 8 70 78 117 + 9 70 121 48 r +36 27 50 113 123 128 +12 + 1 130 130 120 91 + 6 84 94 + 2 71 r 68r 73 r + 5 71 r 66 r 72 95 r +20 69 84 +10 390 459 447 103 lOlp 73 76p 81 45 123p 126p 95 77p 75p 92 458 + + 13 + 12 + 11 +13 224 239 +14 213 231 +15 150 168 241 240 184 254 238 167 + + - 6 6 + + + + + 2 1 2 53 15 18 9 15 67 11 2 13 8 6 35 17 Pa. Man-hours (1927-28=100)........ General (1932 = 10!)) + 35* +27* 69 88 88 92 87 87 91 88 91 93 Payrolls............................................ + 28* 113 121 +19* 138 169 121 167 125 176 + 10 + 74 + 2 16 +182 23 _ + 35 49 60 +81 +99 23 49 +79 47 52 +67 .131 108 19 +99 + 3 50 34 -25 686 262 59 47 49 117 15 30 515 54 39 48 110 14 38 923 94 81 97 76 95 68 140 153 80 78 78 100 83 103 76 108 108 122 136 77 75 82 138p 73 p 106p 70p 99 174 11 Op 136p 74 72 83 -47* 33 r 19 20 49 18 89 91 102 104 70 32 78 33 74 30 81 81 78 81 84 82 85 79 80 83 85 80 81 84 88 85 82 83 86 81 + 8* 79 + Building and real estate Contracts a warded t—total............. 53 59 Residential!..................................... 24 50 Non-residentialf............................ 52 54 Public works and utilities!......... 112 111 Permits for building—17 cities.. . . 7 18 Real estate deeds—Philadelphia . . 51 32 Writs for Sheriff sales—Phila......... G72 525 59 45 46 104 17 28 460 59 41 53 94 20 39 905 1 _ 8 _ + 15 10 4- 22 + 40 + 97 Distribution Retail trade —sales...................... 73 83 66 73 81 84 70 73 Live insurance sales.......................... 101 104 New passenger auto, registrations. 245 83 Hotels—Occupancy........................... Income, total...................... Freight car loadings—total............. 65 73 Merchandise and miscellaneous. 65 73 Coal................................................... 65 69 85 72 89 73 102 154 76 76 75 Wholesale trade—sales..................... 83p 76p _ 493p + 122 63 91 2 + 13 +11 4 + 15 +10 95 323 7 +110 7 + 32 83 83 78 + 8 + 10 + 4 + 27 + 27 + 20 - 7 106 +25 132 96 110 +18 59 +17 57 +10 69 Business liquidations * 11 * Amount of liabilities......................... 47* Payment of accounts Check payments................................. Rate of collections (actual) Wholesale trade..................... 82 88 96 30 65 32 77 33 75 97 76 + + 1 + 18 + 9 + 17 1 Prices—United States (1926=100)................. Farm products................................ + Wholesale 4* A * + Other commodities........................ Retail food........................................ Philadelphia.................................. Scranton.................................. (In millions of dollars) + + 1* 2* + 1* 3* 85 + 2* 79 85 80 % change from Dec. 1935 Sept. 1936 Oct. 1936 Nov. 1936 Dec. 1936 Month ago Year ago fa) 214 383 73.1 0 -4 -0 +16 +44 + 4 413 769 1.478 13. 0 +1 -0 +3 + 3 + 9 +12 +10 Banking and credit Federal Reserve Bank Bills discounted..................... $ (a) Other bills and securities............. 184 Member bank reserves................. 266 Reserve ratio (per cent)............... 70.5 Reporting member banks Loans to customers....................... * 402 Other loans and investments. . . 706 Total deposits (adjusted)............ 1,319 Bankers' acceptances outstanding. 12 3 $ & (a) 217 354 71 .0 $ 423 762 1,433 11 .4 $ fa) 214 406 73.3 $ 417 704 1,491 12.7 * * Computed from data unadjusted for seasonal variation. T 3-month moving daily average centered at 3rd month. (a) Less than $500,000. (a) 214 397 73 .3 $ 413 763 1.480 13 .1 $ p—Preliminary. r—Revised. J Not included in production index, Page Three OUTPUT OF MANUFACTURES BY CLASSES INDUSTRIAL FUEL AND POWER PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT ELECTRIC POWER | USED BY INDUSTRIES CONSUMERS GOODS FUEL OIL OUTPUT DURABLE GOODS BITUMINOUS COAL OUTPUT 193 I 1932 terials was 37 per cent greater than in 1935. Among the individual industries, noticeable gains during December were shown by textile industries, particularly woolens and worsteds, carpets and rugs, and hosiery. Iron castings, electrical apparatus, and blast furnaces showed the largest increases in the case of metal products. A con siderable improvement also was re ported by shoe factories and sugar re fining plants. Output of electric power continues at a very high rate relative to previous years. Changes in output or consump tion during December were minor, considering the season, although the decline in sales to industries was somewhat larger than usual from No vember to December. Total consump tion of electricity last year was around 14 per cent larger than in 1935. Coal and other fuels. The anthracite market has slackened since the middle of last month, chiefly because of the unusually mild weather. Colliery out put showed a gain in December but shipments changed little from the November level. In early January the output of mines continued in about the same volume as a month before. For the entire year 1936 anthracite pro duction totaled approximately 55,000, 000 tons compared with 52,000,000 produced a year earlier and an average of 78,000,000 tons in the years 1923-29. The estimated number of workers em ployed in the industry last year aver aged 93,000 compared with an average of 160,000 for the years 1923-1929. Demand for Pennsylvania bitumi nous coal has been well maintained and continues much more active than for several years past. Takings by manufacturing establishments have de Page Four 1935 1932 1931 1936 creased somewhat since mid-December but consumption by public utilities and railroads appears to have expanded further. Output and shipments of soft coal showed improvement in December, continuing an upward trend that has been especially pro nounced since early summer. Total production in 1936 amounted to ap proximately 108,000,000 tons; this was an increase of 20 per cent over the quantity mined in 1935 and exceeded that of any year since 1930. Ship ments during the past twelve months were 16 per cent greater than a year before and the largest since 1929. Output of by-product coke increased more sharply than usual in December, being maintained at higher than sea sonal levels as in four months pre vious. Total production in 1936 amounted to about 2,300,000 tons, a gain of 28 per cent over a year earlier. Annual output in this section, as in the country generally, has increased stead ily since 1932, in contrast with a sharp downward trend following 1929. Production of gas and fuel oils also declined in December, following a steady gain since mid-summer. For (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) Dec. 1936 1933 1934 1935 the entire year 1936 output exceeded that of the year before by 28 per cent and was the largest since 1930. Building and real estate. The value of all contract awards in this district totaled approximately $14,475,000 in December, an increase of 3 per cent from a month before but a decline of 19 per cent as compared with a year ago. The gain in the month reflected larger awards for non-residential structures and public works and util ities, which more than offset a de crease in the dollar volume of con tracts let for residential buildings. Awards for one and two-family houses declined by a smaller percentage than usual from November to December and were more than three times as large as a year earlier. Building contracts Philadelphia Federal Reserve District Per cent change Dec. 1936 1936 (000’s From from omitted) month 12 mos. ago 1935 Residential........................ $ 4,260 201 Apts, and hotels............ 4,059 Family houses............... 5,253 Non-residential................ 1,775 Commercial.................... 1,230 Factories......................... 1,295 953 All other.......................... - 12 — 45 - 9 4- 14 + 29 - 19 +134 - 19 + 99 Per cent change from Total buildings.......... $9,513 Public works and utilities 4,962 44- 0 8 + 87 4- 67 Month Year ago ago Grand total................. $14,475 4- 3 4- 81 4- 74 +104 + 79 + 72 + 37 +190 + 36 Source: F. W. Dodge Corporation. 199,200 179,855 l,732f 82.3 98,307 +4 -0 -2 -0 +6 + 5 + i -23 — 1 — 4 440,308 31,886 97.3 134,539 -2 +0 +0 +2 4-35 +22 — 1 + 5 129.6* 97.8 4-4 0 +29 4- 9 125.7* 70.2 -7 0 + 1 4- 9 Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. t December 1. Contracts awarded for all types of construction in 1936 amounted to ap proximately $170,000,000. This com pared very favorably with a little over $94,000,000 a year before and the low of $68,000,000 reached in 1933, but was small in comparison with the 1923-1925 average of $305,000,000 and the record high of $503,000,000 estab lished in 1928. Residential awards showed the largest gain over 1935 and FREIGHT CAR LOADINGS VALUE OF BUILDING CONTRACTS AWARDED PHILADELPHIA FEDERAL RESERVE DISTRICT ALLEGHENY DISTRICT PERCENT PERCENT PRICES OF BUILDING MATERIALS COAL (.923=100) (23.3,* or total) MERCHANDISE AND MISCELLANEOUS 1(64.9;^ or TC TOTAL TOTAL RESIDENTIALSEASONAL VARIATION (l923-23=IQo) 193 1 1932 1933 1934 constituted 30 per cent of the year’s contract total. Contracts let for nonresidential buildings made up 39 per cent of the 1936 awards and the re mainder of 31 per cent was in public works and utilities. These percent ages, when compared with those for earlier years, indicate the increasing importance of residential construction, which last year accounted for a larger proportion of all contract awards than in any year since 1929. Demand for building materials gen erally was unusually well maintained throughout 1936 and activity at plants supplying them expanded rapidly, reaching the highest levels in several years. For example, employment in Pennsylvania factories producing im portant materials used in building construction increased very sharply be tween March and September and showed only a small decrease in the last quarter of the year. The average number of wage earners in these estab lishments during 1936 was the largest since 1930 and exceeded the average for 1932 by nearly 35 per cent. Wholesale prices of building mate rials generally have shown a slow up ward trend for several months. Lately, however, advances have become more pronounced in the case of lumber and glass. About the middle of January, the index of the Bureau of Labor Sta tistics stood at 91 per cent of the 1926 average, compared with 89 four weeks earlier and 85 a year ago. The real estate market generally was much more active in 1936 than a year before, when recovery from the record low levels reached during the depression was becoming increasingly apparent. Although the most pro nounced improvement over 1935 and earlier years was confined principally 1935 1936 1931 to the residential field, demand for office, factory and warehouse space increased considerably during the last half of the year. Renting demand for small houses and apartments was greater in 1936 than a year earlier and reported increases in rentals were more numerous than in any previous year since 1929. Sales of small houses, particularly those ranging in price from about $4,500 to $6,500, in creased considerably last year and there also was a somewhat more active market for larger and higher priced dwellings than at any time since the, depression. Distribution, trade and service. Re tail trade sales of general merchandise including wearing apparel and shoes have shown a marked expansion over the past few years. The increase was particularly sharp during 1936 when dollar sales were 11 per cent larger than in the previous year and nearly 30 per cent greater as compared with 1932. The most pronounced increases have been in installment sales, as partly indicated by a rise of 31 per cent from 1935 to 1936 in the sales of credit stores. While December showed the usual seasonal peak in sales, the rate of .increase from No vember was slightly lower than was to be expected in all lines except women’s apparel, particularly in stores outside of Philadelphia. Retail prices of gen eral merchandise showed advances at the turn of the year. Dollar sales by wholesale establish ments representing eight important lines were 15 per cent greater in De cember 1936 than a year before. In creases ranged from over 30 per cent in dry goods, electrical supplies and jewelry to 4 per cent in drugs. Ordi narily December sales in the aggregate 1933 1934 1936 show a small decline as compared with November, but this year they regis tered an increase of about 3 per cent, so that our seasonally adjusted index rose to 93 relative to the 1923-1925 average from 89 a month before. For the entire year 1936 the value of all wholesale trade sales was 10 per cent greater than in 1935, the most pro nounced increases being reported by jewelry, dry goods and electrical sup ply establishments. Inventories of merchandise at retail and wholesale declined less than they usually do in December and at the end of the month exceeded those of a year earlier by 15 and 6 per cent, respec tively, reflecting in part higher prices. The rate of stock turnover during 1936 was more rapid than a year be fore at both retail and wholesale. In December collections generally were effected at a somewhat more rapid rate than a year earlier. Freight car loadings in this section have been maintained at higher than seasonal levels for four consecutive months and in December showed an increase of 27 per cent over a year before. For the entire year 1936 de liveries of all commodities by rail were 18 per cent greater than in 1935 and the largest since 1930. The only groups into which car loadings are divided that showed declines from 1935 were livestock and less-than-carload merchandise shipments; other classifications registered increases ranging from 10 per cent in coal to over 60 per cent in the case of ore and coke. The volume of rail freight con sisting chiefly of manufactures origi nating in the Philadelphia industrial area increased further in December and continued increasing in early January. Sales of new passenger automobiles in this district in December were nearly one-third greater than in the same month of 1935. Total sales for the entire year 1936 exceeded 200,000 units and were by far the largest since 1929, when an all-time record of 210, 000 cars was established. Factory sales of passenger cars and trucks in the country as a whole continued to expand sharply during 1936 and pre liminary figures show that nearly 500,000 more units were sold than the year before. Preliminary reports from the Department of Commerce show that retail financing of new pas senger automobiles reached a new high level in 1936, exceeding the previous record year of 1929 by nearly 2 per cent. Estimates indicate that the value of new units so financed amounted to nearly $1.2 billion last year. Business of non-resort commercial hotels, while declining in December, has been noticeably larger than in recent years. Room occupancy in 1936 was 12 per cent and total revenue 15 per cent greater than in 1935. Further details follow: Hotel business Philadelphia Federal Reserve District Dec. per cent change from Month Year ago ago 1936 from 12 in os. 1935 Room occupancy.................... Per cent of capacity used: Dec. 1936................. 47.7 Nov. 1936................. 56.3 Deo. 1935................. 44,4 Income from: Guest rooms......................... Food....................................... Other sources....................... - 0 -10 — 1 + 16 +12 -13 + 4 +16 +20 +23 +28 + 15 +14 +17 Total revenue................... + 0 +23 +15 In the two weeks ending January 6 deposits at the reporting member banks rose to a new high point and member bank re serve balances were enlarged by the return of currency from circulation and disbursements of the Treasury. A reversal of these .trends in the fort night following was manifested in all of these items except currency demand. Reserve deposits of member banks totaled 386 millions on January 20. This figure was substantially below the record peak in October, but still was 84 millions above a year ago. In the last half of December, when re serves averaged 380 millions, the ex cess above legal requirements was 57 per cent, banks in Philadelphia as a whole showing 61 per cent and coun try banks, 48 per cent. The dollar volume of excess reserves then was 138 millions, an increase of 42 millions over the figure four months earlier, Banking conditions. DigitizedPage Six for FRASER Federal Reserve Bank of Philadelphia (Dollar figures in millions) Changes in— Jan. 20, 1937 Bills discounted. . . $ 0.4 Bills bought............ 0.3 Industrial advances 4.6 United States securities.............. 194.8 Total bills and securities........... l'ederal res. note circulation........ Member bank re.serve deposits.. U. S. Treasurer — general account 1' oreign bank deposits................. Other deposits........ Total reserves......... Reserve ratio.......... Five weeks One year -$ 0.1 + 0.0 - 0.2 +* 0.0 - 0.2 - 2.1 - 14.2 Jan. 20, 1937 Reporting member banks (000,000’s omitted) + 17.7 Assets Loans to brokers and dealers: $ $200.1 -$14.5 +$15.4 Outside New York City.. . Loans on securities to others (except banks)..................... Acceptances and commercial paper bought........................ I/oans on real estate............... 303.5 - 11.2 + 41.1 Other loans............................... 385.9 + 7.8 + 83.8 11.7 + 6.8 - 19.7 Total loans........................ $ U. S. Government securities Obligations fully guaranteed by U. 8. Gov’t...................... Other securities....................... 8.8 1 .8 531.1 74 .6% + 3.3 + 0.0 + 15.5 + 1.5% Changes in Five One weeks year + 4.1 - 8.4 + 83.5 + 1.3% just after requirements had been raised. Over the five weeks from December 16 to January 20 the reserve balances of member banks increased nearly 8 millions. This was due principally to a substantial decline in currency de mand after the holidays, although other factors contributed in smaller measure. Early in the period a sub stantial payment was made through the interdistrict settlements to the local office of a Government agency in connection with a sale of securities. If this payment should be omitted from the figures, in view of the fact that it bore no immediate relation to the re serves of member banks, it would show that the district had a substantial ad verse balance in commercial and finan cial transactions with other sections of the country and that direct Treasury receipts from local sources were a lit tle less than local disbursements. In cluded in Treasury receipts were 22 millions withdrawn from depositary banks. A sharp drop in deposits at report ing banks during the last two weeks of the period more than balanced the rise in earlier weeks. The five-week period as a whole shows a decrease of 19 millions, which reflected chiefly a decline of 17 millions in funds standing to the credit of the United States. There was a small increase in inter 9 20 +$ 2 +$ 6 139 - 6 - 30 63 2 190 + + 7 1 + 5 + 9 - 4 - 1 + 19 453 352 +$ 9 + 8 +$23 + 57 89 302 - 4 2 - 20 +1» +$n 3 +$70 + 41 + 3 - 31 - 1 - 20 + i Total loans and investments.................................. $1,196 Reserve with Fed. Res. Bank 263 Cash in vault........................... 17 Balances with other domestic banks................................ 152 87 Other assets—net................... - 6 Liabilities Demand deposits, adjusted $ Time deposits.......................... U. 8. Government deposits.. Interbank deposits................. 822 261 55 331 +$ 2 - 6 - 17 + 2 +$42 + 4 + 17 + 26 Other liabilities....................... Capital account...................... 20 226 - + 3 + 3 4 1 hank deposits, hut some decline in those held for others despite the return of currency and Treasury disburse ments to the public. Outstanding credit of the reporting banks increased 11 millions, owing principally to a rise of 5 millions in the so-called commercial loans, the purchase of 7 millions of open market paper, and the acquisition of 8 millions of United States securities. These increases were accompanied by de creases of 4 millions in loans on stocks and bonds to customers and 6 mil lions in holdings of securities other than direct Federal issues. The de cline in deposits and increase in total loans and investments were met chiefly through a drop of 31 millions in balances held with correspondents, there being little net change in sums held with the reserve bank. In the past year deposits of the re porting banks have increased 89 mil lions or over 6 per cent, 42 millions being in demand deposits and the re mainder distributed mainly among interbank and United States deposits. MEMBER BANK RESERVES AND RELATED FACTORS Changes in weeks.ending— Dec. 23 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Changes in five weeks Sources of funds: Reserve bank credit extended in district........ Commercial transfers (chiefiv interdistrict) .. Treasury operations.............................................. + 9.9 +13.7 -14.2 - 7.2 - 0.8 + 5.7 - 6.6 + 3.3 + 6.7 + 6.3 -13.1 - 2.2 + 0.7 - 8.2 - 7.9 + 3.1 - 5.1 -11.9 Philadelphia Federal Reserve District (In millions of dollars) Total..................................................................... + 9.4 - 2.3 + 3.4 - 9.0 -15.4 -13.9 Use of funds: Currency demand.................................................. Member bank reserve deposits.......................... “Other deposits” at reserve bank...................... Unexpended capital funds of reserve bank. . . +10.5 - 1.8 + 0.6 + 0.1 -13.5 +12.0 - 0.8 - 0.0 - 9.4 + 14.8 + 0.3 - 2.3 + - 5.1 4.2 0.3 0.0 - 1.9 -13.0 - 0.4 - 0.1 -19,4 + 7.8 + 0.0 - 2.3 Total..................................................................... + 9.4 - 2.3 + 3.4 - 9.0 -15.4 -13.9 The assets show a drop of 20 millions in balances with other domestic banks, but a rise of 41 millions in reserves with the reserve bank and an expansion of 70 millions in earning- assets. Holdings of direct obligations of the Fed eral government have tended generally upward since Sep tember ; they now constitute over 29 per cent of the total loans and investments and, at 352 millions, are 57 millions greater than a year ago. REPORTING MEMBER BANKS MILLIONS PHILADELPHIA FEDERAL RESERVE DISTRICT Employment and Payrolls in Pennsylvania (AH figures are rounded from original data) Manufacturing Indexes Employment* PayroUs* (Indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and group indexes are weight Dec. change from Dec. change from 1936 1936 ed porportionately.) index Dec. Nov. index Dec. Nov. 1935 1936 1935 1936 All manufacturing.......... Iron, steel and products . Non-ferrous metal prods. Transportation equip. . . I extiles 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 . . DEPOSITS 1400 TOTAL LOANS AND INVESTMENTS 88 81 117 68 108 104 127 105 76 67 91 96 98 93 67 87 55 +i + 12 +22 +10 +24 +13 + 1 - 1 +12 + 7 - 1 + 6 + 6 -1 +0 -0 +3 +1 +1 91 97 132 66 100 100 104 101 71 58 94 89 100 97 - 3 +17 _ 2 -5 +4 +1 59 99 55 +2 +1 +0 +1 + 7 + 5 +2 -1 -2 * Figures from 2296 plants. +33 +56 +30 0 +56 + 5 Employehours f Dec. 1936— per cent change from Dec. Nov. 1935 1936 + 5 + 8 + 2 + 3 + 5 + 2 +14 - 0 +29 •- 1 +22 + 2 + 3 +14 +14 + 4 +12 + 5 +35 +48 +27 +51 +18 +18 + 14 + 5 +17 +31 +27 + 5 +14 +12 - 8 +15 + 9 - 4 +37 +15 -12 + 9 + 9 + 4 - 0 + 4 + 6 +41 +16 +16 +18 + 9 - 1 + o + 6 - T - 3 - 0 - 1 +12 + 3 + 4 t Figures from 2054 plants. INVESTMENTS General Index Numbers Covering twelve branches of trade and industry LOANS (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are 'combined proportionately into general in dex number.) BALANCES AT RESERVE BANK AND OTHER BANKS General index (weighted)___ 1935 93 6 Percentage change—December 1936 from December 1935 City areas* Manufacturing Employ ment Allentown............. Altoona.................. Harrisburg............ .Johnstown............ Lancaster............. Philadelphia......... Reading................. ■Scranton............... Trenton................. Wilkes-Barre. . . . W illiamsport........ Wilmington.......... Y ork....................... Wage payments +17 + 7 +13 +42 +13 +10 +14 +13 + 9 - 4 +10 +14 + 8 +41 +41 +47 +92 +17 +20 +39 +23 +19 + 1 +23 +26 +26 Building permits (value) + 52 + 670 + 45 +1,157 81 + 236 + 532 + 333 + 289 + 423 + 493 + 106 +2,411 Debits +23 +32 , +25 +47 +38 +22 +31 + 1 - 1 +12 +25 +63 +29 + + + + — + + + — + + 1 0 2 4 0 1 4 4 1 0 1 0 — 1 + + + + + + + + + + + + + 4 0 6 4 5 3 8 6 3 3 3 2 5 _ + + + — + + + + + + 42 410 53 83 93 11 33 27 48 193 114 66 440 + 15 + 22 + 35 + 20 + 19 + 17 + 14 + 16 + 59 + 21 4- 8 +112 + 28 Dec. 1936 index 125 139 89 127 79 112 163 93 143 114 107 102 98 Per cent change from Dec. 1935 Nov. 1936 +10 +12 - 4 + 5 +39 +21 -17 + 4 + 7 + 6 + 4 + 3 + 1 + 6 + 2 - 8 - 5 - 1 - 0 + 18 - 0 - 1 +1 - 4 +10 Payrolls Dec. 1936 index 176 221 103 238 97 201 169 100 145 113 118 109 97 Per cent change from Dec. 1935 +28 +33 - 0 +25 +71 +57 - 6 + 9 +14 + 8 +n +14 + 9 Nov. 1936 + 5 +38 -11 + 3 + 1 + 15 — 1 + 1 - 9 Retail trade sales +12 +24 +10 +26 +16 +10 +14 + 7 +17 +13 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT 1932 AVG.xlOO / +12 “ PAYROLLS December 1936 from November 1936 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre.... Williamsport........ Wilmington......... York....................... Manufacturing............................. Anthracite mining....................... Bituminous coal mining............ Building and construction......... Quarrying and non-inet. mining Crude petroleum producing . . . Public utilities.............................. Retail trade................................... Wholesale trade........................... Hotels............................................. Laundries....................................... Dyeing and cleaning................... Employment +62 +51 +58 +60 +45 +52 +50 +48 +42 EMPLOYMENT +64 1932 1933 1934 1936 * Area not restricted to the corporate limits of cities given here, Page Seven OUTPUT OF MANUFACTURES Index numbers of individual lines of trade and PHILADELPHIA FEDERAL RESERVE DISTRICT ADJUSTED EON SEASONAL VARIATION l»U-MAVG.IOQ STEEL PERCENT 75 manufacture 50 Philadelphia Federal Reserve District 25 O L OCOMOTIVES ND CARS 75 Index numbers: percentages of the 192,3-1925 average as 100 50 Not adjusted Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. 25 Per cent cha nge Unadjusted indexes reflect merely the actual change which may or may not Dec. Oct. Nov Dec. 1935 1936 1936 1936 be typical. Dec. 1936 from Month Year ago ago _ O SILK 1936 from 1935 Dec. 1935 Oct. Nov Dec. 1936 1936 1936 150 125 \A V a 100 75 Retail trade Total of all stores........................... 73 Department................................. 68 Men’s apparel............................. 63 Women’s apparel....................... 102 Shoe.............................................. 64 Credit........................................... 80 r 83 74 81 108 90 92 85 83p 79 75p 78 73p 104 113 81 77 95 95p + - 2 4 6 9 5 0 + + + + + + 13 11 17 11 20 18 +n +10 + 17 +12 +10 +31 122 123 106 154 82 124 r 94 100 84 91 85 89 121 125 91 79 112 122 138p 136p 123p 170 98 147p 50 w OOLENS AND WORSTEDS 125 100 A 75 JX 50 Stocks of goods Total of all stores......................... Department............................... Men’s apparel........................... Women’s apparel..................... Shoe............................................. Credit.......................................... 66 52 65 95 72 81 r 73 71 101 66 96 72 76p 56 57 p 67 78p 104 109 67 67 95 lOOp + 6 + 2 +15 + 4 + o + 6 + + + + + 63 49 66 88 67 75r 15 11 21 14 6 25 81 83 73p 64 66 55p 75 / / 8Gp 128 128 101 73 70 63 102 107 93p + 7* Stocks of goods Total of all lines........................... Boots and shoes........................ Drugs.......................................... Dry goods.................................. Electrical supplies.................... Groceries.................................... Hardware................................... Jewelry....................................... Paper........................................... 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............................. . HOSIER A 125 r V\. 84 89 93p 54 46 43 106 105 102p 51 58 57 77 84 84 p 111 119 128 62 66 69 71 67 62 80 81 91 136p 60 60 61 + 4 - 6 - 3 - 2 + 1 + 8 + 4 - 8 +12 +10 + 15 + 24 + 32 + 32 + 24 + 31 + 28 +10 91 +14 33 +11 100 + 1!) 45r +19 106 + 3 123r +10 61 +25 96 + 12 68 65 33 114 37 r 93 70 62 60 57 + 6 + 3 — 0 + 6 + 30 + 6 — 13 + 3 61 97 67 104 68 99 121 71 9586 103 48 108 75 109 129 73 96 85 106p 41 104p 59 140p 129 75 126 87 76 29 116 47 124 84 76 62 62 76 70p 25 34 120 114 42 39 134 121p 81 75 70 65 64 52 61 CEMEN T —-- 75 25 50 25 O LUMBER PRC DUCTS 75 50 RARER AND WOOD PULP 75 — 50 25 SHOE 200 + 7* 5.72 6.12 175 150 34 67 62 63 86 r 18 81 24 153 94 79 48 105 115 136 29 39 24 58 95 69 120 105 19 75 37 287 102 70 56 130 105 137 64 53 33 59 98 69 r 125 112 23 79 35r 263 101 80 56 146 105 146 64 57 r 34 65 102 80 123 131 26 88 37 169 106 97 59 182 125 156 64 56 35 85 26 51 96 61 88 158 117 74 75 156 104 87 43 57 98 69 98 144 101 98 83 151 124 95 47 62 96 72 94 138 114 100 84 164 130 90 58 64p 110 72 98 174 96p 107 89 1 oop 134 +12 + 3 +10 +17 +15 +12 + 4 -36 + 5 +22 + 5 +24 +19 + 7 + 0 - 2 + 2 - 1* - 5 +23 +14 0 + 4 +26 -16 + 8 + 7 - 5 + 3 + 94 + 52 + 28 + 94 + 52 + 45 + 8 + 51 + 10 + 12 + 23 + 22 + 74 + 8 + 15 +124 + 43 + 47 + 0* + 5 +125 + 25 + 14 + 19 + 12 + 11 - 18 + 45 + 18 - 0 + 29 +76 +42 +32 +93 +24 +34 +31 +59 +83 - 1 + 1 +20 +22 - 7 +14 +44 +34 +30 + 3* + 15 +24 +1S + 10 +12 + 6 + 5 - 3 +16 + 15 + 7 +30 33 63 58 61 84 r 14 80 24 161 96 73 51 99 112 134 24 38 23 90 91 17 51 69 61 89 134 127 73 73 155 100 58 95 73 114 114 17 71 35 276 104 77 58 148 115 150 72 53 35 90 91 36 75 120 71 99 155 105 99 89 152 121 59 95 70 r 116 119 20 73 33 r 263 102 87 59 168 119 147r 63 56 r 35 90 105 30 68 116 72 95 130 111 100 86 164 125 65 96 74 118 128 21 86 37 178 108 90 63 172 121 154 53 54 34 90 96 37 66p 79 73 99 148 104p 106 87 153p 130 125 J 100 75 _________i--------50 .EATHER-GOAT AND KID 175 150 125 AMV>V\ -A, /v y V+ V 100 75 p—Preliminary. r—Revised. r a V1 50 PETROLEUM REFINING 175 V_A'W 150 125 IOC — VVW 75 CIGAR 125 s IOC — 73 5C ........ . . 193 3 Page Eight \r\)'V 50 81 35 98 43r 64 121 r 56 47 72 * Computed from data unadjusted for seasonal variation. J Jr\XT 75 Rate of stock turnover 12 months factual, not indexes) Output of manufactures O 150 4.61 4.32 Wholesale trade Sales Total of all lines........................... Boots and shoes........................ Drugs.......................................... Dry goods................................... Electrical supplies................... Groceries. . . ,........................... Hardware................................... Jewelry....................................... Paper............................. --------- 25 100 Rate of stock turnover 12 months (actual, not indexes) K /^Y'V'j 1934 1935 1936
@FedFRASER