The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW 5 AM ^ :7f. 9° FEDERAL RESERVE BANK OF PHILADELPHIA FEBRUARY 2, 1942 War requirements and active consumer demand are sustaining industrial and trade activity at high levels. Industrial production has expanded further as orders for essential equipment and supplies con tinue to increase. Operations against high priority placements are absorbing an increasing proportion of capacity, and output of heavy consumers’ goods is being curtailed substantially further. Civilian orders in a wide variety of lines are showing a tendency to decline, owing to difficulties of get ting delivery. Freight shipments have been heavy. Buying at wholesale is fairly active, and consumer demand at retail stores is strong. Prices are ad vancing and the areas of price control and ration ing are becoming more extensive. though there is usually some decline, while the number of workers in trade establishments in creased seasonally. Preliminary reports indicate seasonal declines in factory employment and wage payments in January, the sharpest decreases being in nondurable lines. The increased incomes currently being received are reflected in unusually active retail trade. The Christmas buying season was the heaviest since the late 1920’s, and since the turn of the year sales have been unusually well sustained by anticipatory con sumer buying. As incomes and buying advance in the face of actual and prospective curtailment in supplies of civilian goods, prices are rising. The demand for Factory operations in this District increased fur bank credit to add to the supply of funds continues ther from November to December when there is strong. Outstanding commercial loans at reporting ordinarily some decline; gains were reported in banks in this' District have shown some seasonal both durable and nondurable lines. The output of decline since December but are still substantially crude oil and electric power also expanded and above a year ago. Investments in Government production of bituminous coal increased, contrary securities have increased further. Prices of short to seasonal expectations. Operations at anthracite term Government and of corporate bonds in the mines declined in the month, reflecting heavy buy market have advanced somewhat since the turn of ing earlier in the year. the year. Quotations on longer term Treasury Building operations continue active. Declines issues have been relatively steady. Prices of appeared in residential and other nondefense con stocks have shown little change in quiet trading. struction, owing to governmental restrictions to conserve strategic materials, but erection of ware Manufacturing. The demand for factory prod houses and other industrial structures has advanced. ucts in this District continues strong. Emergency re quirements are expanding rapidly, necessitating the Incomes are still increasing. In Pennsylvania diversion of an increasing proportion of materials factories hourly earnings and working time have and productive facilities to the manufacture of es risen further, and employment is maintained at the sential equipment. Purchases on civilian account high levels which have prevailed since last fall. In have continued to decline. The growing difficulty of December factory employment was unchanged, al obtaining delivery within a reasonable period is re- Page One PRODUCTION AND DISTRIBUTION EMPLOYMENT AND PAYROLLS IN PENNSYLVANIA PHILADELPHIA FEOERAL RESERVE DISTRICT PERCENT PERCENT 12 BRANCHES OF TRADE AND INDUSTRY PERCENT 1932 VC. x 100 A* 225 ELECTRIC POWER PRODUCTION v «1 « J PAYROLL \ l/ at 200 175 OUTPUT Of MANUFACTURES * A *mA*/v \ r » • 150 , r ft ADJU3TCD rOH 5CA50HAL VARIATION 1937 1938 "LOADINGS OF MERCHANDISE AND MISCELLANEOUS FREIGHT 1939 1940 194 I V-, / •v T'y IOO * / _/ # J N wi 125 a a1 EMPLOYMENT-^’"' 1 75 1935 1936 1 1937 1938 1939 1940 1941 stricting inquiries, and in some instances outstand showed a gain of 45 per cent. In some lines pay ing orders have been canceled. Prices have ad rolls were substantially more than double those vanced further in a number of lines and quotations of a year earlier. Employment and wage pay generally are above the levels of a year ago. ments at establishments producing nondurable Operations at plants producing essential supplies goods showed increases over December 1940 of 2 and equipment are being maintained at an ex and 16 per cent respectively, some of the most pro ceptionally high rate, while production of a va nounced gains occurring at woolen and worsted riety of nonessential items has slackened some mills, canning factories, and tanneries. what further. Unfilled orders remain at high Earnings of factory workers in Pennsylvania in levels in most heavy goods lines in spite of a stead creased further in December to a new high average ily increasing volume of shipments. Backlogs at of 85 cents an hour, or 11 cents above the rate pre leather tanneries, certain textile mills, and a few vailing a year earlier. Working time expanded to establishments producing building materials are 41.4 hours a week from 40.7 in November, and declining. Inventories of finished goods at report weekly income increased nearly $1.00 to $34.79, ing plants are continuing to decrease and in a num the highest in records back to 1923 and $5.00 ber of lines are smaller than at this time last year. above December 1940. Factory employment in Pennsylvania in Decem At factories in both Delaware and southern New ber was sustained at the November peak of over Jersey employment increased about 1 and pay 1,150,000 workers, while wage disbursements in rolls 6 per cent from November to December. The creased 3 per cent to a new high of about number employed in Delaware factories during $37,000,000 a week. Compared with a year ago 1941 averaged 27 per cent more than a year earlier employment showed an increase of 15 per cent and and the volume of wage disbursements was nearly payrolls 36 per cent. In the twelve months ended 53 per cent greater. In southern New Jersey em December the number of employees averaged ployment in the twelve months ended December 1,100,000, or 18 per cent more than in 1940; pay was 17 per cent above the average for 1940 and rolls in the period averaged $32,800,000 a week, wage payments were 46 per cent higher. an increase of 41 per cent. Activity in December The output of factory products in this District and throughout the year showed the greatest expan expanded somewhat in December, instead of de sion in the heavy industries producing transporta clining seasonally. On an adjusted basis opera tion equipment and a wide range of metal products. tions increased 6 per cent to a level 25 per cent In January both employment and wage payments above a year ago, reflecting gains in both durable decreased seasonally, according to preliminary re and nondurable goods lines. Over the past twelve ports. months the sharpest expansion was in the heavy in In durable goods lines the number employed in dustries, where output averaged 50 per cent more December was 25 per cent greater than a year than in 1940. In the case of lighter products, the earlier and the volume of wage disbursements increase in this period was 11 per cent. Page Two ACTIVITY IN THE STEEL INDUSTRY TEXTILE ACTIVITY EMPLOYEE-HOURS IN PENNSYLVANIA EMPLOYEE - HOURS IN PENNSYLVANIA PERCENT PERCENT COTTON ' GOODS FOUNDRIES STEEL WORKS AND - ROLLING MILLS WOOLENS AND WORSTEDS ■** V MACHINERY AND PARTS 1936 1938 1939 940 1937 1938 1939 1940 1941 1942 Production and total sales of electric power in creased somewhat more than seasonally from No vember to December and were 15 per cent greater than a year earlier. Sales to industries showed slightly more than the customary decline in the month but continued substantially greater than in December 1940. Building. Building activity in this District has been well sustained despite the scarcities of ma terials which are restricting the erection of resi dences and nondefense structures. Operations against existing contracts declined from Novem ber to December, but new awards for commercial buildings and public utilities expanded sharply. For the full year 1941, nearly all types of construc Coal and other fuels. The industrial consump tion activity were well above 1940. Quotations on tion of bituminous coal continues heavy, but sales building materials have risen further to a level 20 of the fuel have slackened somewhat, reflecting in per cent above August 1939. part heavy stocking in the summer and fall. The demand for anthracite was stimulated sharply by New contract awards expanded 20 per cent in cold weather after the turn of the year. Prices of December to $33,400,000, the largest for the coal continue firm. month in records extending back through 1923. The production of Pennsylvania anthracite de Awards for commercial structures increased very clined 5 per cent further to a daily average of sharply. Declines were reported in all other lines about 158,000 tons in December, when activity except public works and utilities. The value of usually increases. In only two years since 1904 awards for one- and two-family houses was the has the output in December been smaller. Sharply smallest since early 1940; contracts for factory curtailed operations in the late months of 1941 construction declined 58 per cent. were due to the mild fall and anticipatory buying The dollar volume of contract awards last year earlier in the year. The volume of hard coal mined aggregated $335,900,000, or 52 per cent more in 1941 was 54,300,000 tons, compared with than in 1940, and was the largest since 1929. The 51.500.000 tons in 1940 and an annual average of greatest gains were in awards for commercial and 52.400.000 tons in the period 1931-1940. factory buildings, which accounted for nearly 39 Stocks of bituminous coal in the hands of con per cent of total contracts as compared with 24 sumers and retailers have increased sharply since per cent in 1940. April to the highest level in over a decade. Pro duction increased 11 per cent in December, con Trade. Distributive activity has been unusually trary to seasonal expectations. Output in 1941, well sustained. Retail trade during the Christmas aggregating 122,700,000 tons, was 9 per cent season was the most active in over a decade, and, above 1940 and the greatest since 1930. owing to expanded consumer incomes and buying Activity at by-product coke ovens continued at a in anticipation of possible shortages, sales since high level in December; production for the year the turn of the year have been substantially greater was 8 per cent above 1940. than in early 1941. The opening of new lines in Page Three BUILDING CONTRACTS DEPARTMENT STORE SALES AND STOCKS PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT MILLIONS PHILADELPHIA FEDERAL RESERVE DISTRICT SALES TOTAL RESIDENTIAL STOCKS ■INDUSTRIAL 1936 1937 1938 1939 1940 1941 _____ Sonreal F.W. Dod^a Coajfc wholesale markets has resulted in a substantial vol ume of sales for future delivery, and fill-in orders are numerous. The movement of freight by rail re covered sharply from the reduced volume of the holiday weeks and continues considerably greater than a year ago. Dollar sales by department stores in December were the heaviest for the month since 1929. The increase over November was somewhat less than usual in all reporting lines except shoes, but com parisons with December 1940 show volume uni formly larger, with increases ranging from 3 per cent at women’s apparel stores to 12 per cent at department stores and 18 per cent at shoe stores. For the year as a whole, gains over 1940 averaged about 15 per cent. ADJUSTED rqR SEASONAL VARIATION 1937 1938 1939 1940 1941 1942 early fall. Comparisons of business in December with that of a year earlier show an increase of 68 per cent in sales of paper, and gains exceeding 30 per cent in dry goods and electrical supplies; small declines were reported in hardware and jew elry, but annual totals in these lines were sharply greater than in 1940. In most lines of wholesale trade inventories did not change materially in December. Supplies ex panded 20 per cent during 1941; increases were substantial in dry goods, electrical supplies, gro ceries, and paper, slight in the case of hardware, and in jewelry a substantial decline was reported. The movement of rail freight in this section last year was 22 per cent larger than in 1940. Load ings in December were the heaviest for the month since the late 1920’s and 16 per cent greater than Stocks of goods were reduced considerably in a year ago. The decline from November was much December, as is usual at this season. Declines were less than seasonal, reflecting unusually well sus slightly more than seasonal at department and tained shipments of ore and merchandise and mis women’s apparel stores and somewhat less than cellaneous freight. Declines in the case of coal, usual at shoe and credit stores. At the end of the forest products, and livestock were somewhat month inventories in dollars were substantially greater than usual. The substantial increase in larger than a year earlier in all lines, with increases total loadings over December 1940 was due prin ranging up to 39 per cent at credit establishments cipally to sharp gains in ore, coke, grain, and man which specialize in durable consumers’ goods. ufactures. Shipments of coal showed only a small Outstanding orders placed by representative de gain and the movement of livestock declined partment stores declined further in December, but slightly. Recent reports continue to show substan at the close of 1941 were still considerably heavier tially heavier loadings in the Philadelphia area than a year earlier. than a year ago. Wholesale trade continued active in December. Sales increased over November and were 26 per cent larger than a year ago. Total volume in 1941 exceeded 1940 by 35 per cent, owing largely to the exceptional volume of sales in the summer and Page Four Sales of new passenger automobiles in this Dis trict in December were about the same as in No vember but less than one-half as large as a year ago. Total sales in 1941 were 4 per cent above 1940. DEPOSITS AT MEMBER BANKS MEMBER BANK RESERVES PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS MILLIONS TOTAL COUNTRY BANKS EXCESS; PHILADELPHIA BANKS required: 32 33 34 '35 '37 '38 '40 '4\ Banking conditions. The volume of bank credit outstanding in this District remains near the record level of late December. Loans have been reduced in the past month, partly through repayments on commercial advances, while investments of the re porting banks have been raised to a new peak by purchases of Government securities. Deposits have declined further, but remain considerably above a year ago, and reflect the higher rate of business activity in a more rapid turnover. Reserves carried with the Federal Reserve Bank declined $12 million to $668 million in the four weeks ended January 21, and are $44 million less than a year ago. In the first half of January these balances exceeded requirements by more than 50 per cent at both Philadelphia banks and the coun try member banks in this District. Large unused balances are also held with correspondents. The decline in member bank reserves over the past several weeks has been due chiefly to losses in commercial and financial transactions with other Districts and to a decline in Reserve Bank float with the passing of the holidays. Support was given to reserves by the return of money from circulation, but the inflow was smaller than a year ago and less than was to be expected in view of the heavy demand before Christmas. Treasury operations supplied $4 million to the market. Large amounts were re ceived by the Government from sales of savings and tax securities, but tax collections declined sharply and disbursements were maintained at a high level. Discounts at this Bank for member banks have dropped below $1 million and outstanding indus trial advances to provide working capital continue to approximate $3% million. The participation 938 939 1940 1941 of the Federal Reserve Bank in the System Open Market Account increased $0.7 million to nearly $178 million. Loans and investments of the reporting mem ber banks totaled $1,412 million on January 21, as compared with $1,415 million on December 24. Loans were reduced $12 million, reflect ing in part seasonal influences. Commercial ad vances decreased $6 million to $289 million, but are still 24 per cent above a year ago and 56 per cent larger than in August 1939. Declines also have been reported recently in brokers’ borrowings and in the miscellaneous advances which include direct instalment and personal loans to individuals. Investments have increased $126 million in the past year to $863 million, a new high point. Ex pansion of $9 million since Christmas reflects heav ier holdings of governments. The investment in Treasury bills was increased $4 million to $21 mil lion and holdings of United States bonds were raised $11 million to $444 million, partly through exchange of Treasury notes and guaranteed securi ties for the new 2 per cent bonds of 1949-51. The portfolio of corporate and municipal securities de clined slightly in the month and is somewhat smaller than a year ago. Deposits aggregating $1,942 million at the re porting banks on January 21 were still consider ably larger than a year earlier, but showed declines of $14 million in the past month and about $100 million in comparison with the record high of last September. Balances held for other banks recov ered from the low point in December, but this gain was more than offset by substantial withdrawals from time deposits of individuals and business con cerns and by payments from the demand balances of states and local governments. Page Five BUSINESS STATISTICS Production Employment and Income Philadelphia Federal Reserve District Adjusted for seasonal variation in Pennsylvania Industry, Trade and Service Not Per cent change Indexes: 1923-5 = 100 Dec. Nov 1941 1941 INDUSTRIAL PRODUCTION MANUFACTURING. . . Durable goods............... Consumers’ goods... . Metal products............ Textile products.......... . Food products................ Tobacco and products.. Building materials......... Chemicals and products Leather and products. . Paper and printing.... Individual lines Pig iron............................. Steel................................... Iron castings................... Steel castings.................. Electrical apparatus. . . Motor vehicles............... Automobile parts and bodies. Locomotives and cars........... Silk manufactures................... Woolens and worsteds.......... Cotton products........................ Carpets and rugs...................... Hosiery........................................ Underwear.................................. Cement........................................ Brick............................................ Lumber and products............. Bread and bakery products. . Slaughtering, meat packing. . Sugar refining............................ Canning and preserving......... Cigars........................................... Paper and wood pulp.............. Printing and publishing......... Shoes............................................ Leather, goat and kid............. Paints and varnishes............... Petroleum products................. Coke, by-product...................... COAL MINING.......................... Anthracite................................... Bituminous................................. CRUDE OIL................................. ELEC. POWER—OUTPUT. . Sales, total.................................. Sales to industries.................... BUILDING CONTRACTS TOTAL AWARDSf................... Residential f............................... Nonresidentialf......................... Public works and utilities'^ .. Dec. 1940 123p 125p 165p 98p 156 82p 297 94p 151 60 163p 127p 97 117 119 157 91 147 76 281 r 94 113 57 164 138 94 101 100 115 89 123 83 150 83 100 51r 140 109r 91 111 133 113 197 210 57 130 86 71 86 50 109 90 145 95 71 34 104 131 99 194 189r 48 139 87 r 71r 74 51 91 74 152 89 67 r 32 91 116 87 141 146 34 116 46 78 71 51 116 94 136 75 62 32 102 106 97p 151 90 98 156 99p 101 193p 148p 60p 56p 91 477 339 342 266 95 126 94 112 90 95 153 125 93r 204 155 64 62 78r 449 331 338 268 105 69 70 99 79 93 137 82 r 88 170 150 70 r 69 r 82 445 295 298 229 96 55 140 132 105 77 122 155 66 64 76 73 Dec. 1941 1941 Mo. ago Year raos. ago 1940 + 5 + + + + + + 6 + s + 7 + 6 + 8 + 6 0 +33 + 6 - 1 - 9 + 3 + + 6 2 +15 + 2 +11 + 18 - 6 - 1 0 + 16 - 3 +20 +22 - 4 + 6 + 6 + 6 _ 4* + 7 -15 + 3 +35 0 + 3 + 2 -20 + 7 - 5 - 4 - 6 -10 +16 + 6 + 2 + 1 - 1 - 8 -28 + 15 -15 - + + + + + + 22 + 25 25 + 21 44 + 50 9+11 26 + 43 1 +1? as + 92 ii + a 51 + ii 17 + 26 16 + 13 16 + 15 6 + 4 + + 21 + 23 + 14 + 30 + 31 + 34 + 40 + 64 + 44 + 63 + 68 +112 + 12 + 39 + 85 + 80 - 9 + ii + 21 + 34 - 3 + 20 - 5 + 8 Employment Dec. Nov. Dec. 1941 1941 1940 120p 118 121p 120 149 78p 303 93p 109 55 160p 120p 98 110 125 105 190 203 45 128 86 72 80 54 105 - 4 + 2 87 + 7 + 12 144 + 27 + 25 78 + 14 + 44 69 + 7 + 12 33 + 6* + fi* - 3 - 5 109 + 53 69 + 39 + 36 lOlp + 53 + 10 109 + 14 + 8 91 + 5 + 3 99 + 13 + 17 132 + 21 + 20 108p + 14 + 15 97 + 14 + 6 190p - 1 + 8 144p - 15 + 5 63p - 19 + 6 59p + ii + 9 95 + 7 - 2 448 + 15 + 16 362 + 15 + 17 352 + 16 + 24 252 + 45* + 50 107 - 13 + 41 54 + 86 + 95 152 + 81! + 3 158 T unadjusted lor seasonal variation, t 3-month moving daily average centered at 3rd month. 98 97 147 77 274 95 135 56 r 164 132 95 117 80 151 82 73 47 139 103r 92 Allentown........ Altoona............ Harrisburg.. . . Johnstown.... Lancaster......... Philadelphia... Reading........... Scranton.......... 1renton ............ Wilkes-Barre. . Williamsport. . Wilmington. . . York.................. Employment Payrolls Building permits value Nov. 1941 Dec. 1940 Nov. 1941 Dec. 1940 0 -1 0 0 -2 0 0 0 +3 +1 -1 0 —2 + 8 +20 +19 +16 +12 +22 + 8 + 6 + 4 +24 + 17 +26 + 4 + 2 +15 + 3 - 1 + 1 + 4 + 2 + 3 + 7 +11 + 1 + 6 + 4 +32 + 232 +38 - 14 +36 + 6 +31 + 140 +33 + 33 +49 - 37 +29 - 22 + 15 + 19 +23 - 24 +75 - 34 +42 + 1103 +54 - 65 +23 - 14 Nov. 1941 Dec. 1940 Page Six GENERAL INDEX 140 Manufacturing...................... 173 Anthracite mining................ 65 Bituminous coal mining... 106 Building and construction. . 60 Quar. and nonmet. mining. 119 Crude petroleum prod......... 142 Public utilities....................... 105 Retail trade................... 153 Wholesale trade.................... 128 Hotels.............................. 101 Laundries................ 115 Dyeing and cleaning........... 104 90 109 100 80 181 135 200 r 142 42 27 127 114 81 r 46 71 79 79 66 54 55 102 111 84 91 153 135 87 61 67 60 32 31 100 92 105 113 82 45 103 71 134 71 90 80 96 94 144 117 121 90r 96 85 205 169 149 146 66 74r 63 73 r 86 r 86 436 418 345 315 348 307 273 218 250 342 62 323 111 307 187 127 187 148 129 160 135 + 3 + 3 -14 + 6 - 4 - 1 + 2 + 1 +17 + 2 - 4 + 1 - 9 +29 +36 -15 +36 +32 +41 +18 +12 + 8 +11 + 5 +17 +n Payrolls* Per cent Dec. change from Dec. change from 1941 1941 index Nov. Dec. index Nov. .... Dec.. 1941 1940 1941 1940 Indexes: 1923-5 = 100 TOTAI.................................. Iron, steel and products.. . Nonferrous metal products. Transportation equipment. lextiles and clothing.......... Textiles................................. Clothing................................ Food products....................... Stone, clay and glass........... Lumber products.................. Chemicals and products. . . Leather and products......... Paper and printing.............. Printing............................ 111 118 182 99 93 85 127 117 99 65 114 97 108 95 0 +i 0 +2 -1 -1 -1 -2 0 -2 0 -1 0 0 +15 +23 +28 +38 0 - 3 + 8 + 7 +12 - 2 + 15 + 9 + 8 + 4 139 193 289 137 105 97 144 135 121 73 152 113 131 115 + 3 + 2 + 8 +n 0 + 1 - 3 - 1 + 4 - 1 + 1 0 + 4 + 5 +36 +42 +45 +72 +16 + 14 +22 + 15 +24 + 11 +30 +27 + 19 +14 Cigars and tobacco............ Rubber tires, goods........... Musical instruments......... 74 96 73 0 -4 -1 +11 + 9 + 7 74 133 97 - 1 + 1 + 2 +19 +27 +1 * Figures from 2,879 plants. 115 74 62 82 87 86 122 178 Hours and Wages Debits Nov. 1941 Dec. 1940 Nov. 1941 Dec. 1940 + 157 +51 + 119 +50 + 234 +48 - 13 +56 +1226 +42 - 51 +38 - 32 +42 6 +58 + 129 +41 4 +41 - 54 - 85 +62 - 79 +57 +15 + 15 + 13 +n + 16 + 10 +17 + 6 + 7 + 14 + 19 + 14 + 35 + 12 + 20 + 41 + 24 + 38 + 22 + 20 + 17 +112 + 35 +24 + 1 +35 +33 +28 +29 + 3 +27 + 8 + 15 + 10 + 16 +10 +15 - 4 - 2 +14 +12 + 5 + 5 + 3 + 5 + 1 + 9 + 3 Employment* Factory Workers Averages December 1941 and per cent change from year ago Retail sales + 2 0 - 2 0 - 7 - 4 + 2 0 + 18 + 1 - 2 +1 - 4 Manufacturing p—Preliminary. r—Revised. * Area not restricted to the corporate limits of cities given here. Indexes: 1932 = 100 105 126 Local Business Conditions* Percentage change— December 1941 from month and year ago Payrolls Per cent Per cent Dec. change from Dec. change from 1941 1941 index Nov. Dec. index Nov. Dec. 1941 1940 1941 1940 + 17 +38 TOTAL............................. Iron, steel and prod... . Nonferrous metal prod. Transportation equip.. Textiles and clothing. . I extiles......................... Clothing........................ Food products.............. Stone, clay and glass.. Lumber products......... Chemicals and prod.. . Leather and products. Paper and printing. . . Printing........................ Others: Cigars and tobacco. . Rubber tires, goods. . Musical instruments . Weekly working time* Hourly earnings* Weekly earningsf Aver Aver Ch’ge Aver Ch’ge age Ch’ge hours age age 41 .4 42.2 41.9 45.8 37.4 38.2 35.6 40.8 38.1 40.6 39.4 38.6 41 .3 39.4 +2 +4 +6 37.8 40.0 45.6 +6 -9 * Figures from 2,645 plants. +3 $.848 +1 +2 +7 +4 +6 +2 +1 +1 +2 +1 -2 .938 .758 .966 .605 .623 .557 .652 .798 .604 .917 .611 .770 .936 +15 *34 79 +15 39.55 +n 31.76 +18 44.25 +13 22.56 +15 23.76 + 9 19.76 + 8 26.92 +10 30.26 + 2 24.20 + 12 35.64 +n 23.68 + 5 32.62 0 37.88 +18 +16 +14 +27 + 18 +21 + 9 + 9 + 10 + 4 +13 + 14 +10 + 9 .485 .774 .759 + 7 + 5 + 4 +11 - 5 18.31 30.93 34.63 + 5 f Figures from 2,879 plants. Distribution and Prices Per cent change 1941 from 1940 Month Year ago ago Sales Total of all lines.................... Dry goods............................. Electrical supplies.............. Groceries............................... Hardware............................. Jewelry.................................. Paper...................................... Inventories + 7 - 2 +17 - 6 +n +12 + 2 +25 - 2 +26 - 1 +12 +36 +32 +22 - 5 - 1 +68 — — + + +20 +20 +24 +39 + 2 —21 +24 3 1 4 2 0 —26 o Adjusted for seasonal variation Not adjusted Per cent change Dec. 1941 from Wholesale trade Unadjusted for seasonal variation +35 +41 +64 +19 +45 +40 +39 Indexes: 1935-1939 = 100 Dec. 1941 from Dec. Nov. Dec. 1941 1941 1940 Month Year ago ago RETAIL TRADE Sales Department stores—District.......................... Philadelphia................. Women \s apparel................................................ Men’s apparel..................................................... Shoe........................................................................ Credit.................................................................... Dec. Nov. Dec. 1941 1941 1940 1941 from 1940 237p 236 172p 227p 149p 204 168 169 124 157 122 176 114p 106* 119p 104p 148 93 154 144 91 153r 96r 114 90 170 106r 136 140 106 128 107 196 110 122 109 146 146 112 135 198 189 126 131 120 120 121 97 125 74 170 101 100 111 +14 159 + 4* 74 132 74 105 160 -14* + 7* -15* + 6* + 8* 98p 115 + 9* 119p 140 91 111 +10* — 41* + 8 -13* 97 + 5* 44 +26 176 128 46 145 127p 123 105p 136p 125p 126 132 127 109 142 125 140 113r 112r 102 r 122r 106 r 118r - 4 3 4 4 0 -10 +12 +10 + 3 +11 +18 + 7 125p 113 128p 112p 161 127 102r 97 r 119 130r 104r 107 97 r 115r 151 — — + + 2 5 1 5 6 +22 + 17 +23 + 16 +39 FREIGHT-CAR LOADINGS Total....................................................................... Merchandise and miscellaneous..................... Merchandise—l.c.l............................................. Coal........................................................................ Ore.......................................................................... Coke....................................................................... Forest products................................................... Grain and products............................................ Livestock.............................................................. 163 162 111 121 446 187 125 120 102 146 147 108 124 254 183 133 114 104 140 139 102 118 306 162 114 98 104 +12 +10 + 3 - 2 +75 + 2 - 6 + 4 - 2 +16 +16 + 9 + 3 +46 +16 + 9 +22 - 2 +22 +23 +13 + 17 +27 +29 +37 + 9 - 4 MISCELLANEOUS Life insurance sales.............................................. 152 124 100 +22 0* +52 -54* +16 +16 + 9 +14 +18 +14 212 213 166r 204 r 126r 191r Inventories Source: U. S. Department of Commerce. Prices Per cent change from Dec. 1941 Month Year Aug. 1939 ago ago Basic commodities (Aug. 1939 = 100). . Wholesale (1926 = 100).......................... Farm.......................... Food.......................... Other......................... Living costs (1935 1939 =100) United States.......... Philadelphia............ Food........................ Clothing.................. Rent........................ Fuels........................ Housefurnishings . Other....................... 158 +3 +35 +58 94 95 90 94 +1 +5 +1 0 +17 +36 +23 +n +25 +55 +35 + 17 110 109 110 114 106 103 115 108 0 0 +1 0 0 0 0 0 + 10 +10 + 16 + 13 + 2 + -5 +13 + 6 + 12 + 11 + 18 +15 + 3 + 7 +15 + 7 Source: U. S. Bureau of Labor Statistics. Hotels—(1934 = 100) Business liquidations Check payments................................................... i63 * Computed from unadjusted data. 151 134 -24* - 5* +21 p—Preliminary. 88 73 162 r—Revised. BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Reporting member (000,000’s omitted) Jan. 21, 1942 Changes in— Four weeks Assets Commercial loans................. $ Open market paper.............. Loans to brokers, etc........... Other loans to carry secur.. Loans on real estate............. 289 42 26 33 49 Other loans............................. 110 - -$ + + - 6 i 3 i 2 3 One year +$ + + + — + 55* 9 2 i 1 1 8* Changes in weeks ended— Dec. 31 Jan. 7 Jan. 14 Jan. 21 Changes in four weeks Sources of funds: Reserve Bank credit extended in District... . Commercial transfers (chiefly interdistrict).. Treasury operations............................................. -19.0 + 5.1 -18.3 + 6.6 - 9.3 + 9.6 + 2.9 + 8.2 + 8.6 - 2.0 -16.5 + 3.9 -11.5 -12.5 + 3.8 Philadelphia Federal Reserve District (Millions of dollars) Total....................................................................... -32.2 + 6.9 +19.7 -14.6 -20.2 Uses of funds: Currency demand................................................. Member bank reserve deposits......................... “Other deposits” at Reserve Bank.................. Other Federal Reserve accounts...................... -10.4 -18.5 - 2.9 - 0.4 - 4.3 +12.3 - 1.0 - 0.1 - 1.8 + 5.6 +15.9 - 0.0 - 1.2 -11.1 - 2.2 - 0.1 -17.7 -11.7 + 9.8 - 0.6 -32.2 + 6.9 +19.7 -14.6 -20.2 Total loans......................... $ 549 — $12 +$ 73 Government securities........ $ Obligations fully guar’teed. Other securities..................... 492 +$13 +$122 + 14 - 10 Total....................................................................... 2 2 Total investments............ $ 863 +$ 9 +$126 Member bank reserves Daily averages: (dollar figures in millions) 104 267 - Total loans & investments $1,412 -$ 3 Reserve with F. R. Bank .. 466 - 11 Cash in vault......................... 25 - 1 Balances with other banks . 200 0 Other assets—net................. 68 - 6 Liabilities Demand deposits, adjusted $1,254 -$ 9 Time deposits........................ 20C - 23 U. S. Government deposits 31 - 1 Interbank deposits............... 457 + 19 Borrowings............................. Other liabilities...................... 13 - 5 Capital account.................... 216 - 2 +$199 - 71 + 2 - 22 - 12 +$156 - 60 + 22 - 19 - 2 1 Held Re quired Ex cess Ratio of excess to re quired Phila. banks: 1941: Dec. 1-15.. $536.1 $303.1 $233 .0 77% Dec. 16-31. . 461.2 295.4 165.8 56 ” 1942: Jan. 1-15.. 449.4 1941: Jan. 1-15.. 513.9 232.0 281.9 122 * Country banks: 1941: Dec. 1-15.. Dec. 16-31.. 1942: Jan. 1-15.. 1941: Jan. 1-15.. 223.5 140.9 219.7 144.4 223.8 201.7 103.3 82.6 75.3 59 * 52 » 98.4 95 * Federal Reserve flank ot Phila. (Dollar figures in millions) Bills discounted........ Bills bought............... Industrial advances . U. S. securities.......... Total........................ Note circulation.... Member bk. deposits U. S. general account Foreign bk. deposits Other deposits........... Total reserves........... Reserve ratio............. Jan. 21, 1942 Four weeks One year 0.8 0 3.6 177.7 $182.1 574.8 668.4 26.8 67.8 25.1 1204.8 88.4% -$ 0.2 0 + 0.0 + 0.7 +$ 0.5 - 3.4 - 11.8 - 59.6 - 9.2 + 9.8 - 63.5 + 0.1% +$ 0.3 0 + 1.5 + 2.8 +$ 4.6 +171.0 - 44.0 + 9.2 - 8.8 + 4.2 +127.4 + 0.9% $ * Revised. Page Seven National Summary of Business Conditions INDUSTRIAL Industrial activity declined less than seasonally in December and the first half of January, retail trade continued in large volume, and prices of many commodities rose further. PRODUCTION Production Federal Reserve index of physical volume of production, adjusted for seasonal variation, 1935-39 average = 100. By months, January 1935 to December 1941. FREIGHT-CAR LOADINGS In December, total volume of industrial output declined less than is usual at this season and the Board’s adjusted index rose further to 168 per cent of the 1935-1939 average. In the armament industries output continued to advance and at machinery plants activity rose sharply, following little change in November. Output of materials, such as iron and steel and nonferrous metals, continued at peak levels and lumber production showed less than the usual seasonal decrease. Automobile production de clined sharply in the latter half of December, following announcement of sharp reduc tions in passenger car quotas, but early in January quotas for that month were increased and output rose considerably. Sales of new automobiles to civilians were halted at the beginning of January, pending the establishment of a rationing system. Textile production declined somewhat in December, owing to a reduction in activity at cotton mills from the record level reached in November. Output of wool and rayon textiles was sustained at about capacity. Output of manufactured food products and shoe production showed about the customary seasonal declines. Coal output decreased somewhat in December, while petroleum production and mining of nonferrous metals were maintained at the high November rate. Value of construction contracts awarded in December declined less than is usual at this time of year, according to figures of the F. W. Dodge Corporation. Awards for public projects showed little change, while those for residential construction declined less than seasonally following a considerable reduction in November. Distribution Federal Reserve index of total loadings of rev enue freight, adjusted for seasonal variations, 1935-1939 average = 100. Subgroups shown are expressed in terms of points in the total index. By months, January 1935 to December 1941. WHOLESALE PRICES Volume of retail trade, which had been large during most of the autumn, increased less than seasonally in December. This reflected to some extent a temporary slacken ing in sales around the middle of the month following this country’s entry into the war. In the first half of January, sales at department stores showed less than the customary sharp reduction from the Christmas buying peak and were at a level substantially higher in comparison with a year ago than that prevailing in other recent months. Freight-car loadings of most products decreased by less than the customary sea sonal amount in December. Coal shipments declined considerably in the latter part of the month but then increased sharply in the first half of January. Shipments of miscellaneous freight, which includes most manufactured products, were maintained in large volume for this season of the year. Commodity Prices Bureau of Labor Statistics' indexes, 1926 = 100. “Other” includes commodities other than farm products and foods. By weeks, January 5, 1935 to week ending January 17, 1942. MONEY RATES IN NEW YORK CITY d 1 _T~/A Cv. I935 I936 I937 Bank Credit TREASURY MOTES 1 TREAS RY BILLS I938 xA ___ -V- — I939 I940 I94I Weekly averages of daily yields of 3-5-year tax-exempt Treasury notes, Treasury bonds callable after 12 years, and average discount on new issues of Treasury bills offered within week. For weeks ending January 5, 1935 to January 17, 1942. Page Eight Wholesale commodity prices increased sharply when this country entered the war early in December and then showed little change during the latter half of the month. In the first half of January, prices again advanced, the principal increases being in agricultural commodities and chemicals. Federal action to impose maximum prices was accelerated with the outbreak of war and applied on a wider scale to industrial products. Ceilings were extended to products in later stages of production and distribution and in most instances covered consumers’ goods. Certain of the actions, like those relating to rubber and wool products, were associated with new Federal production restrictions. In this period also there were advances in a number of price ceilings established earlier. Total loans and investments of banks in leading cities, which had advanced sharply during the first half of December, have subsequently shown little further change. Treasury financing in the middle of December and heavy currency withdrawals during the holiday season absorbed close to 700 million dollars of excess reserves dur ing the month. About 500 million of this was recovered in the first half of January, as the result of a decline in Treasury deposits at the Reserve Banks and a return of currency from circulation. Recent changes in excess reserves have been almost entirely at banks outside of New York City. United States Government Security Prices Prices of Government securities were steady in the first half of January, follow ing a decline in December after the entry of the United States into war.
@FedFRASER