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THE BUSINESS REVIEW RESERVE DlSTM&fttoYE 6ah JANUARY i, iq37 THIRD FEDERAL PHILADELPHIA ____ ‘ FEDERAL RESERVE BANK OF PHILADELPHIA^ Q 0,? Sr* Jr, ',v&ion Business and Banking Conditions in the United States Production, wage payments, and the distribution of commodities to con sumers increased considerably from October to November. Wholesale commodity prices have advanced steadily since the end of October. . Production and employment. The Board’s index of industrial production, which makes allowance for changes in the number of working days in the month and for the usual seasonal varia tions, was 114 per cent of the 1923 1925 average in November as com pared with 109 per cent in October. Output of both durable and non-durable manufactures showed a considerable rise. Production of steel ingots in creased further to a rate of 79 per cent of capacity in November, and output of automobiles also increased. Figures for the first three weeks of December indicate continued expansion in output of both steel and automobiles. In the plate glass industry, where there has been a strike, production was sharply reduced in November and activity at lumber mills declined, reflecting the effects of the maritime shipping strike on the Pacific coast. Increases in out put were reported at meat-packing INDUSTRIAL PRODUCTION establishments and textile mills, and sugar meltings and output of tobacco products declined by less than the usual, seasonal amount. At mines, coal pro duction increased and output of crude petroleum and iron ore showed a smaller than seasonal reduction. Value of construction contracts awarded, according to figures of the F. W. Dodge Corporation, continued at about the same rate in November as in the previous month. Factory employment showed little change from October to November, al though a decrease is usual at this sea son of the year, and the Board’s sea sonally adjusted index advanced to 96 per cent of the 1923-1925 average. The number employed at factories produc ing durable goods continued to increase, with the largest expansion in the automobile and machinery industries. There was a decline in employment at lumber mills and in the glass in dustry. In the non-durable goods industries as a group employment showed a smaller decline than is usual in November. At shoe factories and establishments producing wearing ap parel smaller than seasonal declines DEPARTMENT STORE SALES were reported and there were increases in employment at cotton and woolen textile mills and at meat-packing plants. Distribution. Department store sales increased substantially in November, and there was also a rise in sales at variety stores and at chain grocery stores. Sales by general merchandise stores and mail order houses serving rural areas declined from the high level reported for October. Freight-car loadings showed a smaller than seasonal decrease in No vember. Loadings of coal, coke, and MEMBER BANK CREDIT Boloncet ot ' t0 Cromers J S Govt I Strgg* Leons Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934, to December 16, 1936. Loans on real estate, loans to banks, and acceptances and commer cial paper bought included in total loans and investments but not shown separately. WHOLESALE PRICES _L Other _ Commodities Farm Products Index of physical volume of production, ad justed for seasonal variation. Indexes of value of sales. Indexes compiled by the United States Bureau of Labor Statistics. By months, 1929 to 1931; by weeks, 1932 to date. Latest figure is for week ending December 19, 1936. Page One grain increased contrary to the usual seasonal tendency, and shipments of miscellaneous commodities and of most other classes of freight declined by less than the seasonal amount. Commodity prices. The general level of wholesale commodity prices con tinued to advance from the middle of November to the third week of De cember. There were substantial in creases in the prices of wheat, flour, non-ferrous metals, and rubber. Prices of wool, cotton yarns, and worsted yarns advanced somewhat further and cotton, pig iron, and steel scrap prices also increased in this period. Bank credit. The reserve position of member banks in recent weeks has been influenced largely by temporary sea sonal developments in connection with holiday currency requirements and mid-December financing by the United States Treasury. Notwithstanding the increased de mand for currency for Christmas shopping, there was a further growth in demand deposits at weekly reporting member banks through the first half of December, reflecting additions to monetary gold stock, as well as a sharp increase in bank loans. At reporting banks outside New York City, holdings of government securities increased by $140,000,000 in the four weeks ending December 16 while at New York City banks they showed a further small decline. There was an increase of $100,000,000 in loans to brokers and dealers in securi ties in New York, largely for the purpose of buying United States Government securities. Commercial loans showed a further increase of $150,000,000 carrying the total vol ume of such loans to a level of $800,000,000 higher than a year ago. Business and Banking Conditions in the Philadelphia Federal Reserve District Industries and trade in the Phila delphia Federal Reserve District showed considerable expansion during November and a comparatively high level has been maintained since then when allowance is made for the usual seasonal variations. Industrial pro duction of factories, mines and crude oil fields, combined proportionately, registered an additional gain of 4 per cent during the month and was 20 per cent over a year ago; the average rate of output this year has been 13 per cent higher than in the same period last year. This bank’s index of indus trial output in November was 93 rela tive to the 1923-25 average as com pared with 89 in the previous month and 77 a year ago. The depression low was around 56. The dollar value of building con tracts awarded during November in creased as compared with October and was substantially larger than a year ago. For the year to date the increases over last year have been considerable in both residential and non-residential buildings. Cash income of farmers from the sale of crops and animal products continues much in excess of that realized in several years past, re flecting largely higher prices. Retail and wholesale trade sales showed appreciable improvement from October to November. Holiday busi ness in December has been quite active and dollar sales appeared to be running considerably above those in comparable periods of recent years. Sales of new passenger automobiles increased very sharply during November and con tinued larger than last year. Deliv eries of goods by railroad freight have been relatively more active than usual during November; the index has been rising almost steadily since spring. Industrial employment and payrolls have been well maintained as shown by reports from twelve branches of trade and industry in Pennsylvania. Rela tive to the 1932 average, the employ BUILDING CONTRACTS-VALUE INDUSTRIAL AND TRADE ACTIVITY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT ment index was 121 and the payroll index was 167. Virtually all lines of occupation showed considerable gains over a year ago and as compared with the low levels in 1932-33. Incoming reports from manufacturing industries indicate that employment, payrolls and working time continued well sustained in early December. Manufacturing. The market for fac tory products has been active and sales of finished goods have increased fur ther since the middle of last month, particularly in the case of textile, lea ther and rubber products, and cigars. Current sales continue to exceed the volume of a year ago by substantial margins. The volume of unfilled orders shows additional increases during the month and is considerably larger than a year ago. Such recessions as are re ported by various lines of industry are principally seasonal in character. Reporting concerns generally show that factory prices of finished goods PERCENT avg. eenfsred a) 3^ month.) PUBLIC WORKS AND UTILITIES INDUSTRIAL PRODUCTION TOTAL v v RETAIL TRADE SALES Zl RESIDENTIAL 1931 Page Two 1933 1934 1935 1936 1931 1932 1933 NON-RESIDENT/ 1934 1935 1936 have advanced further since the mid dle of last month and that they con tinue noticeably above those of a year ago. The index compiled by the Bureau of Labor Statistics, which covers manufactures and fuel and lighting materials but excludes farm products and foods, on December 19 was 82.2 relative to the 1926 average as compared with 81.2 on November 21 and 78.8 on December 21, 1935. The sharpest increases lately have oc curred in prices of semi-manufactured articles and raw materials, although finished products also showed marked gains. Inventories of finished goods at re porting plants generally show addi tional declines from the volume reported last month, reductions being especially pronounced in the case of such consumers’ goods as textile prod ucts. Compared with a year ago stocks of manufactures continue in smaller volume. The supply of raw materials and semi-finished products likewise has been reduced during the month. In several instances reports indicate difficulties in obtaining raw materials, purchases of which have been larger than a year ago, reflecting more active business. Factory employment, payrolls and working time in this section showed about the usual seasonal changes from October to November. In the case of wage disbursements a decline of somewhat less than usual proportions reflected partly wage increases during the first part of November. The gen eral level of employment and payrolls has been well sustained at the highest rate since 1930. The employment index for Pennsyl vania factories in November was 87, relative to the 1923-25 average, or about 10 per cent higher than a year ago; the payroll index also was 87 but was 27 per cent higher than in No vember last year. Estimates show that all Pennsylvania factories about the middle of November employed approxi mately 950,000 wage earners and the amount paid these workers in wages appears to have been around $22,300,000 a week. Reports from Delaware factories show a slight decline in employment but a gain of 2 per cent in wage pay ments from October to November. Compared with a year ago, the number of wage earners' registered a gain of 12 per cent and the amount of wages paid was nearly 29 per cent larger. The changes in employment and pay rolls reported by manufacturers in Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not be typical. Nov. Sept. Oct. Nov. 1935 1936 1936 1936 Nov. 1936 from Month Year ago ago Industrial production Manufacturing—total............... Durable goods....................... Consumers’ goods................. Metal products...................... Textile products.................... Transportation equipment. Food products........................ Tobacco and products......... Building materials................ Chemicals and products___ Leather and products.......... Paper and printing............... Coal mining................................. Anthracite............................... Bituminous............................. Crude oil...................................... Electric power Output..................................... Sales, total J............................ Sales to industries!............... Not adjusted Per cent change 77 76 63 r 86 68 85 62 72 86 36 111 125 81 49 48 61 406 89 88 83 r 93 94 r 91 80 76 99 43 122 133 87 59 56 80 461 89 89 86 92 96 r 90 91 74 99 47 121 122 93 51 48 78 459 93p 91p 89p 93p + + + + + 100 88 202 r 235 232 232 200 229 231 233 145 166 173 181 42 8 46 + 9 + 42 92p 77p 98 47 132p 130p 91 67p 65p 84 461 20 20 + + + - 8 + 14 + 33 + 19 + 4 + 6 3 +31 +35 + 7 + 0 + -0 + 1 + 4 + 15 + 17 + 24 + + + + 1936 from Nov. Sept. Oct. Nov. 1935 1936 1936 1936 11 mos. 1935 + + + + + 13 15 37 4 35 + 0 + + + 68 8 9 + 32 12 36 35 38 13 + 13 + 14 + 15 79 78 91 90 68 r 88 59 72 103 36 in 119 82 52 50 67 394 94 93 94 r 98 r 93 94 75 87 80 78 114 121 47 50 121 123 145 130 86 94 60 64 57 62 81 84 461 459 95p 93p 100 97p 85 79p 117 47 132p 124p 91 70p 67p 92 447 210r 230 239 241 205 227 231 240 148 176 168 184 Employment and wages—Pa. Factory—Wage earners.................. Payrolls.......................................... Man-hours (1927-28 = 100)___ General (1932 =100) Employment................................. Payrolls.......................................... + 10* + 7* + 27* + 21* + 31* + 27 79 69 69 87 83 86 88 87 88 87 92r 91 + 0* - i* + 11* + 6* 109 + 27* + 19* 131 118 121 121 158 169 167 + 51 +113 + 76 Building and real estate Contracts awardedf—total........... Residential!.................................. Non-residentialf.......................... Public works and utilities!. ... Permits for building—17 cities. . Real estate deeds—Philadelphia . Writs for Sheriff sales—Phila.. . . 39 26 103 10 69 59 59 54 50 45 64 54 46 141 111 104 15 18 17 + 0 - 9 - 9 610 631 525 460 -12 21 -14 - 6 + 73 + 1 +104 +103 +109 + 97 + 95 39 22 28 115 9 68 60 59 49 49 47 63 52 49 130 108 117 13 19 15 25 - 29 683 732 262 515 + 18 9 17 + 10 Distribution Retail trade —sales................... stocks................ Wholesale trade—sales................... stocks................ Life insurance sales......................... New passenger auto, registrations Hotels—Occupancy......................... Income, total.................... Freight car loadings—total........... Merchandise and miscellaneous Coal................................................. 70 88 73 76 r 87 r 68 r 70 105 103 143 92 66 83 85p 73 72p 84 89p 73 73p 104 102 83 154 61 63 56 + 2 - 51 + 8 + 1 - 2 + 2 +86 — 14* 8 -11* 12* 12* + 5 + 4 + 9 25 19 33 84 79 94 76 76 81 87 r 99 r 97 70 r 73 76 7 111 83 95 25 100 89 68 12* 109 r 124 140 15* 122 r 115 153 17 62 80 80 16 63 80 79 9 61 71 78 11 lOOp 83p lOlp 75p 108 108 121p 136p 77 75 82 Business liquidations Number............................. Amount of liabilities___ +23* - 18* - 23* + 2* - 43* - 47* 63 r 35 r + 8 + 18 + 2 - 2 + 2 + 11 + 1* + 1* + 2* +1* — 0* - 0* 0* + 2* + + 10* + - 1* + 3* + + 2* + + 2* + + 2* + 42 18 42 19 87 85 91 102 33 66 27 75 32 78 33 74 81 77 85 79 81 83 78 82 84 83 80 84 85 80 81 84 83 80 83 85 80 82 85 84 81 82 85 80 52 20 Payment of accounts Check payments.................... Rate of collections (actual) Retail trade............................ Wholesale trade................. 88 96 32 68 + 9 Prices—United States Wholesale (1926=100). Farm products............... Foods............................... Other commodities.... Retail food....................... Philadelphia................... Scranton.......................... (In millions of dollars) Nov. 1935 Banking and credit Federal Reserve Bank Bills discounted.............................. $ (a) Other bills and securities............. 185 Member bank reserves................. 269 Reserve ratio (per cent).............. 70.1 Reporting member banks Loans to customers....................... $ 402 Other loans and investments. . . 698 Total deposits (adjusted)............ 1,306 Bankers’ acceptances outstanding. 13.7 Aug. 1936 $ * Sept. 1936 (a) 217 320 69.6 $ 421 767 1,412 12.3 $ $ 423 762 1,433 11.4 * * Computed from data unadjusted for seasonal variation, t 3-month moving daily average centered at 3rd month, (a) Less than $500,000. % change from Oct. 1936 (a) 217 354 71.0 1* 2* 2* 2* 2* 3* 2* Nov. 1936 (a) 214 406 73.3 $ 417 764 1,491 12.7 $ Month ago Year ago (a) 214 397 73.3 0 -2 0 +16 +48 + 5 413 763 1,480 13.1 -1 -0 -1 +3 + 3 + 9 +13 - 4 r—Revised. p—Preliminary. J Not included in production index. Page Three OUTPUT OF METAL PRODUCTS HOSIERY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT ELECTRICAL APPARATUS STOCKS PRODUCTION STEEL PRODUCTS 1931 1932 1933 1934 southern New Jersey were about what was to be expected between October and November and the levels continued substantially higher than a year ago. This bank’s seasonally adjusted index of manufacturing activity in creased further from 89 in October to 91 per cent of the 1923-25 average in November or the highest since the fall of 1930. The rise since Feb ruary this year has been very sharp and steady. A year ago this index stood around 76 and at the depression low it was about 55. The average rate of productive activity in the first eleven months this year was 15 per cent higher than in the same period last year. The most pronounced improvement continued in durable goods industries, such as primary and secondary metal products, automobile parts and bodies, and lumber products. The chemical industry also registered substantial gains. The index of the durable goods group as a whole reached 89 as com pared with 86 a month ago and 63 in November last year. The rate of op eration in this group this year has averaged 37 per cent higher than in the same period last year. Industries manufacturing consumers’ goods also showed slight improvement during the month, the aggregate index rising to 93 as compared with 92 in October and 86 a year ago. This was due largely to sharp increases in op erating schedules of the woolen and worsted industries, carpets and rugs, and a smaller decline than usual in the underwear industry. Output of hosiery just about maintained its normal sea sonal level, while shoe production de clined more sharply than is to be ex pected from October to November. The food group as a whole registered improvement, reflecting chiefly greater Four DigitizedPage for FRASER 1935 1936 1932 than seasonable activity in meat pack ing, sugar refining and canning and preserving. Cigar production declined in the month but continued noticeably larger than a year ago. Output of electric power, which has been maintained at record high levels in recent months, showed about the customary rate of gain from October to November. Total sales of electricity increased 4 per cent in the month and were 17 per cent greater than in No vember 1935. Industrial consumption of electrical energy was expanded fur ther. The November index after al lowance is made for the usual seasonal variation, stood at approximately 181 per cent of the 1923-25 average, or slightly above the previous high point of September 1929. • Coal and other fuels. The anthracite market has been more active of late, reflecting an increasing demand for household fuel that usually accom panies colder weather. Colliery out put in November was 9 per cent larger than a month before and showed an additional gain in early December, when production exceeded that of any like period in the past five years. Ship ments of anthracite increased further during November. Thus far this year output and shipments have about equalled those of a year ago. Demand for Pennsylvania bitumi nous coal has improved further since the middle of last month, as indicated by the larger takings of such industrial consumers as factories, railroads and public utility companies. Output of mines increased more than seasonally in November, after being unusually well maintained since early this year. In the first fortnight of December pro duction showed some additional ex pansion and continued in much greater 1933 1934 1935 1936 volume than a year before. Shipments of soft coal exceeded 700,000 car loads in November and were the largest for that month since 1929. In the first eleven months this year production showed an increase of 17 per cent and shipments a gain of 15 per cent over the same interval of 1935. Output of bi-product coke, and gas and fuel oils registered increases in November, continuing the rise since mid-summer. Compared with a year ago coke production was 30 per cent larger and that of gas and fuel oils 46 per cent greater. (Output and shipment figures arc 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) Nov. 1936 Per cent change from Month Year ago ago 177,600 180,161 l,771f 82.4 92,307 + 9 + 7 -25 +1 + 3 +35 +35 -21 - 1 +n 439,130 31,867 97.2 131,643 +10 + 6 - 0 + 0 +38 +24 - 1 + 6 124.7 97.8 + 3 0 +30 +10 146.3* 70.2 +14 + 3 +46 +10 Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. f November 1. The value of all building contracts awarded in this district amounted to approximately $14,000,000 in November, a gain of 20 per cent from a month before and an increase of 44 per cent over a year ago. The increase in the month was contrary to seasonal tendency and reflected a marked expansion in the dollar volume of contracts let for public works and utilities and such non-residential struc tures as factories and commercial buildings. Contracts awarded for residences, which have been unusually Building. SALES OF NEW PASSENGER AUTOMOBILES FREIGHT CAR LOADINGS ALLEGHENY DISTRICT REGISTRATIONS PERCENT l»2 3-25AVC.: 100 250 r UNITED STATES COAL [23.57. OF TOTA MERCH ANDISE AND MIS :ellaneous (64.9/. OF TC TAL ) -*'V/ 0 PHILADELPHIA_ _ _ _ FEDERAL RESERVE I DISTRICT V I %_ TOTAL ADJUSTED FOR SEASONAL VA RIATION 1931 1932 1933 1934 well maintained since early this year, declined slightly in November instead of showing a small increase as they ordinarily do in that month. The value of all contract awards thus far this year has been a little more than double that of a year earlier and the largest for that interval since 1931. Building contracts Philadelphia Federal Reserve District Per cent change Nov. 1936 1936 (000’s From omitted) month from 11 mos. ago 1935 $ 4,852 367 4,485 4,621 1,377 1 [517 554 1,173 + l +72 +36 +58 +95 -29 +21 + 103 +145 + 96 +109 + 65 + 47 +510 + 43 Total buildings.......... $ 9,473 Public works and utilities 4,604 +15 +29 +106 + 97 Grand total................. $14,077 +20 +104 Source: F. W. Dodge Corporation. As indicated by employment, opera tions on contracts previously awarded declined slightly in November, follow ing a marked upward trend since early this year. Current reports show that demand for building materials has slackened seasonally since the middle of last month although it continues much more active than a year ago. Employment in plants supplying ma terials used in building construction showed a small decline from October to November, but as in other recent months was maintained at substan tially higher levels than in the past five years. Wholesale prices of building ma terials have increased further, continu ing a slow advance that has been in evi dence since early October. About the middle of December the Bureau of Labor Statistics’ index stood at 89 per cent of the 1926 average, compared 1935 1936 with 87 two months earlier and about 85 a year ago. Agriculture. The agricultural situa tion in this district at the close of the crop season compares quite favorably with that of other recent years. Al though the output of several important commercial crops as well as that of others used principally as feed for live stock was somewhat below average this year, rising prices for farm prod ucts generally more than offset these smaller yields and have resulted in a substantial increase in the cash income of farmers in this district. Department of Agriculture reports indicate that in the first ten months this year sales of all farm products in the three states covering this dis trict exceeded $275,000,000, a gain of 11 per cent over a year ago and an increase of nearly 50 per cent as com pared with the same period of 1933. But in comparison with 1929 total cash income is still about 18 per cent smaller. Wholesale prices of farm products have increased sharply, reflecting chiefly market advances in quotations for grains, potatoes, livestock and live stock products. The Bureau of Labor Statistics’ index on December 19 was 87.7 relative to the 1926 average, as compared with 85.2 four weeks earlier and 77.3 a year ago. • Distribution, trade and service. The value of retail trade sales by depart ment, apparel, shoe and credit stores, computed on a daily basis, was 18 per cent larger in November this year than last. All lines participated in this gain, although the greatest per centage increases were reported by credit and men’s apparel stores. No vember sales by department stores in this district as a whole were 13 per 1932 1933 1935 cent and at Philadelphia establishments 11 per cent larger than in the same month last year. Dollar sales in the aggregate showed somewhat more than the usual rate of increase in No vember, so that our seasonally adjusted index rose to 85 per cent of the 1923 1925 average from 83 in October. Thus far this year the value of all retail trade sales has been 11 per cent greater than a year ago. Business at wholesale, as indicated by the total dollar sales of eight im portant lines in November, was about 17 per cent larger than a year ago. Increases ranged from one per cent in shoes to 42 per cent in dry goods. Combined figures indicate a gain of 5 per cent in sales from October to No vember, a period in which ordinarily little change occurs. For the year to date the dollar volume of sales has been 10 per cent above that of a year ago, owing in part to higher prices. Stocks of goods at both retail and wholesale showed about the usual rate of change from October *o November and were somewhat larger than a year earlier. The rate of stock turnover at retail was 7 per cent and at wholesale 5 per cent more rapid in the first eleven months this year than last. Sales of new passenger automobiles in this district increased very sharply in November, following a marked downward trend for four months previous. The number of new units sold was 8 per cent larger than in November last year and exceeded that of any like month on record: Thus far this year sales have shown an in crease of 25 per cent over 1935 and have been the largest for that interval since 1929. Total freight car loadings in this section in November were maintained Page Five above their customary seasonal level for the third successive month. In the first eleven months this year shipments in the aggregate have been 17 per cent greater than in the same interval of 1935. The volume of rail freight con sisting largely of manufactures origi nating in the Philadelphia industrial area also has registered larger than seasonal gains since early fall and in November was the greatest for that month since 1931. Activity of non-resort commercial hotels declined in November but con tinued substantially above a year ago, as the following table shows. Hotel business Philadelphia Federal Reserve District Month Year ago ago 1936 from 11 mos. 1935 - 0 +12 +12 Nov. per cent change from Room occupancy.... Per cent of capacity used: Nov. 1936................. 56.3 Oct. 1936................. 64.6 Nov. 1935................. 44.9 Income from: Guest rooms............ F ood.......................... Other sources.......... Total revenue.... - 0 -14 -20 - 5 - 3 +13 +13 + 10 + 15 + 13 + 16 -11 +12 + 15 Over the period from November 18 to December 16, marked throughout by seasonal demand for currency and in the latter part by new United States Treasury security issues in substantial volume and the payment of quarterly installments on the income taxes, reserve balances of member banks in this district declined from 404 to 378 millions. This figure, while over 40 millions below the all time high reached in October, still was 108 millions above a year ago and con tinued to reflect substantial excesses above legal requirements both in Phila delphia and outside of the city. The rise in currency demand at this season of expanding retail trade amounted to from 19 to 20 millions and was larger than in the corre sponding period last year. The other Banking conditions. Federal Reserve Bank of Philadelphia (Dollar figures in millions) Changes in— Dec. 16, 1936 Bills discounted.... $ 0.5 Bills bought............... 0.3 Industrial advances. 4.8 United States securities..................... 209.0 Total bills and securities................ $214.6 Federal res. note cirdilation............... 314.7 Member bank reserve deposits.. . 378.1 U. S. Treasurer — general account. 4.9 Foreign bank deposits................... 5.6 Other deposits.......... 1.7 Total reserves........... 515.6 Reserve ratio............ 73.1% DigitizedPage for FRASER Six principal factor tending to reduce re serve deposits was a 9p2 million ex cess of local Treasury receipts over disbursements. These factors were off set only in part by a small favorable balance of payments in commercial transactions with other districts and other items of minor size. Deposits declined 31 millions at the reporting member banks in the three weeks ended December 9, owing to de creases in those of individuals, firms, corporations, etc., as well as in inter bank and Treasury balances. The de crease in the latter was due to with drawals from special balances earlier set up in payment for new securities; some part of these funds doubtless found its way back into other classes of deposits as a result of Govern ment disbursements. The falling off in other classifications reflected directly or indirectly seasonal currency demand and the flow of funds to other sections of the country. In this period there was a small decline in loans and a decrease of 4 millions in security hold ings of the reporting banks. The funds derived from these sources however served only in small measure to coun terbalance the drop in deposits and to offset a rise of 3 millions in the banks’ cash holdings, so that reserves at the reserve bank and balances with other banks declined 26 millions. Figures of reporting banks for the week of December 16 reflected Treas ury operations. These banks were allotted 28 millions of the new securi ties, excluding exchange transactions, payment for 23 millions being made by deposit credit and 5 millions in cash. Twelve millions of the total was for their own account; apparently the greater part of these was retained, for their holdings of United States se curities increased 10 millions in the week. Payments by customers for bonds allotted to them, whether made in cash or by charges against their deposit accounts, obviously exceeded the 5 millions of cash payments made Dec. 16, 1936 Reporting member banks (000,000’s omitted) Changes in Four One weeks year Assets Loans to brokers and dealers: Outside New York City... Loans on securities to others (except banks).................. Acceptances and commercial $ Other loans............................... Total loans..................... $ U. S. Government securities . Obligations fully guaranteed by U. S. Government. . . Other securities....................... 9 18 - 3 + 3 145 - 2 - 3 23 62 2 185 + 4 + ^ - 6 - 1 + 16 444 344 ~$ 1 + 11 +*11 + 44 93 304 - - 2 + 16 Total loans and investments........................... $1,185 Reserve with Federal Reserve Bank........................ 263 Cash in vault........................... 20 Balances with other banks. . 183 88 2 +$ 8 +$09 - 23 + 3 + 13 + 70 + 3 + 27 - 7 Liabilities Demand deposits, adjusted . $ Time deposits........................... U. S. Government deposits.. Interbank deposits................. 820 267 72 329 -$ 3 - 8 + 17 - 8 +$77 + 16 + 26 + 37 Other liabilities........................ Capital account....................... 24 227 + + + + 2 1 3 3 by the banks to the Government. More over, collected deposit balances, other than those to the credit of the United States, actually increased 6 millions. The; additional funds so placed at the disposal of the banks were absorbed only in small measure by the acquisi tion of 3 millions of miscellaneous se curities, the bulk being manifested in a rise of 17 millions in balances with correspondents to the highest point this year. Total loans to customers did not change materially over the four-week period. Those made on the security of stocks and bonds dropped off 5 millions and at current levels are prac tically the same as a year ago. Real estate loans have changed little re cently and are in smaller volume than at that time. On the other hand the miscellaneous group of loans, usually identified with commercial accommo dation, moved up 4 millions in the four weeks and, though still 6 millions under the September peak, continues 16 mil lions or 9 per cent above a year ago. MEMBER BANK RESERVES AND RELATED FACTORS Four weeks One year Changes in weeks ending— Nov. ?5 Dec. 2 Dec. 9 Dec. 16p Changes in four weeks Sources of funds: Reserve bank credit extended in district........................... Commercial transfers (chiefly interdistrict)...................... Treasury operations................................................................. + 2.5 - 6.5 - 7.3 +2.9 -8.0 +5.8 -3.9 +3.8 +5.0 + 0.2 +12.5 -13.0 + 1.7 + 1.8 - 9.5 + 41.1 Total................................................................................... -11.3 +0.7 +4.9 - 0.3 - 6.0 -25.8 +108.5 + 2,1 - 10.7 + 0.7 - 0.1 -11.3 - 0.6% + 2.4 - 8.5 +108.1 + 1.9% Uses of credit: Currency demand..................................................................... Member bank reserve deposits............................................. “Other deposits” at reserve bank....................................... Unexpended capital funds of reserve bank........................ + 8.4 -19.9 - 0.0 + 0.2 +1.0 -1.6 +1.2 +0.1 +4.7 + 1.5 -1.4 +0.1 + + - 5.4 5.8 0.1 0.0 +19.5 -25.8 - 0.1 + 0.4 Total.................................................................................... -11.3 +0.7 +4.9 - 0.3 - 6.0 +$0.2 0 - 0.2 -$ 0.0 - 0.2 - 2.1 Philadelphia Federal Reserve District (Millions of dollars) 0 + 31.9 +$0.0 +$29.6 +13.1 p—Preliminary. Employment and Payrolls in Pennsylvania RESERVE DEPOSITS OF MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICTS MILLIONS (All figures are rounded from original data) Manufacturing Indexes REQUIRED EXCESS OVER REQUIREMENTS 1932 1933 1934 1935 1936 1937 (Licensed banks only after March 1933)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ DEPOSITS REPORTING MEMBER BANKS MILLIONS Employehourst Employment* Payrolls* (Indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and group indexes are weight Nov. change from Nov. change from 1936 1936 ed proportionately.) index Nov. Oct. index Nov. Oct. 1935 1936 1935 1936 PHILA. FED. RES. DISTRICT All manufacturing .. Iron, steel and products . Non-ferrous metal prods. Transportation equip. . . Textiles and clothing.... Textiles........................... Clothing.......................... Food products................... Stone, clay and glass.... Lumber products.............. Chemicals and products . Leather and products___ Paper and printing........... Printing.......................... Others: Cigars and tobacco... . Rubber tires, goods. . . Musical instruments .. 87 80 116 69 107 101 128 107 76 67 92 93 97 93 +10 +20 + 9 +29 + 5 + 3 +12 + 1 - 4 +12 + 6 - 2 + 6 + 6 + i +1 69 86 54 - 1 + 0 +14 - 5 + 1 - 1 * Figures from 2284 plants. - 1 + i - 1 +1 - 1 - 1 +1 - 1 -12 - 0 +1 - 3 87 90 127 69 97 94 106 100 70 58 91 78 96 92 +27 +44 +23 +24 +19 - 0 + 12 +12 -14 - 3 - 0 -12 - 1 - 3 64 84 51 +11 + 2 +42 -17 + 0 + 3 Nov. 1936— per cent change from Nov. Oct. 1935 1936 b31 L44 -22 -57 - 1 +1 - 1 - 0 + 0 + 0 - 0 +.W + 8 + 6 +18 + 8 + 5 rlO - 9 -18 -j - 7 - 6 - 2 -24 -29 - 3 -13 HI +16 +34 -11 + + + + 1 0 3 0 1 1 3 - 2 -10 - 3 +1 -11 - 1 - 4 + 3 ~ 1 + 1 f Figures from 2047 plants. DEMAND (adjusted) 700 — General Index Numbers 500 — Covering twelve branches of trade and industry INTERBANK (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) U.S. GOVERNMENT 1934 General index (weighted)... 1935 1936 Percentage change—November 1936 from November 1935 City areas* Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre.... Wilmington.......... Manufa cturing Employ ment Wage payments +12 + 8 +11 +36 +10 +10 + 9 + 7 + 9 - 3 +10 +16 + 6 +32 +50 +38 +84 +10 +17 +20 + 7 +18 + 1 +19 +29 +21 Building permits (value) +333 + 37 - 44 +971 +326 + 40 +232 + 41 - 52 + 82 + 93 +290 - 46 Debits +21 +25 +10 +31 +24 +17 +17 + 4 -12 +20 +16 +14 + + + + + + + - 0 1 2 2 0 1 4 3 1 2 2 1 1 + + + + + •+ + - 1 1 6 6 4 0 1 3 0 0 4 3 1 + + + - 29 54 82 31 i 36 30 30 71 16 2 54 44 - 9 - 8 -14 - 8 -12 - 2 - 7 - 5 -21 - 9 - 1 - 8 -13 Nov. 1936 index 121 138 83 124 85 118 164 93 122 115 108 101 102 Payrolls Per cent change from Nov. 1935 Oct. 1936 +n +10 +11 + 6 +41 +20 -18 + 3 + 7 + 6 + 5 + 6 + 9 +0 -1 +3 +0 -0 -1 -2 -1 +3 +1 -0 -0 -5 Nov. 1930 index 167 211 75 225 109 217 165 99 127 113 119 108 107 Per cent change from Nov. 1935 Oct. 1936 +27 +27 +41 +36 +78 +61 - 8 + 7 +14 +11 +13 + 13 +10 - 1 - 1 -17 - 0 - 3 - 8 - 4 - 1 + 3 + 2 + 0 - 1 -12 Retail trade sales +16 +31 +10 +31 +12 +13 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA IS MANUFACTURING AND NON-MANUFACTURING INDUSTRIES AND SERVICES PERCENT +10 +21 +10 +21 ~ PAYROLLS November 1936 from October 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-met. mining Crude petroleum producing .. . Public utilities.............................. Retail trade................................... Wholesale trade........................... Hotels............................................. Laundries....................................... Dyeing and cleaning................... Employment + 7 +10 - 4 + 3 + 6 +13 +14 +14 +18 EMPLOYMENT + 3 1932 1934 1935 * Area not restricted to the corporate limits of cities given here. Page Seven Index numbers of individual lines of trade and manufacture OUTPUT OF MANUFACTURES PHILADELPHIA FEDERAL RESERVE DISTRICT 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. Not adjusted Per cent change Unadjusted indexes reflect merely the actual change which may or may not Nov Sep. Oct. Nov. be typical. 1935 1936 1936 1936 Nov. 1936 1936 Month Year ago ago mos. 1935 Nov. Sep. Oct. Nov. 1935 1936 1936 1936 SILK Retail trade Sales Total of all stores......................... Department............................... Men’s apparel........................... Women’s apparel..................... Shoe............................................. Credit.......................................... 72 r 69 r 64 88 79 72 r 88 79 76 120 85 98 83 S5p 74 79p 81 78p 108 104 90 81 92 95 + 2 + 6 - 3 - 4 -10 + 3 + + + + + + 18 13 23 IS 3 33 +n 84 +10 80 +15 72 +13 107 + 4 76 +32 92 r Stocks of goods Total of all stores......................... Department............................... Men’s apparel........................... Women’s apparel..................... Shoe............................................ Credit........... .............................. 66 53 67 90 72 78r 73 56 66 113 67 95 r 73 56 71 101 66 96 r + + - + + 9 6 76 62 77 111 76 88 r 72p 56p 68p lOo 67 95 1 0 5 4 1 2 + 16 - 7 + 22 Rate of stock turnover 11 months (actual, not indexes) + 7* 79 94 lOOp 71 84 91p 63 85 89p 104 121 125 87 79 91 93 112 122 76 58 71 122 72 97 r 81 64 75 128 73 102 r 83p 66p "P 128 70 107 WOOLENS WORSTEDS HOSIERY 3.8E 3.65 Wholesale trade Sales Total of all lines........................... Boots and shoes........................ Drugs.......................................... Dry goods.................................. Electrical supplies.................... Groceries.................................... Hardware................................... Jewelry....................................... Paper...................................... ... 76r 45 87 41 r 67 108r 54 52 73 87 r 53 100 50 78 119 63 70 79 84 89p 54 46 106 105 51 58 74 78p 111 119 62 66 71 67 80 81 + 5 -15 - 1 +14 + 4 + 7 + 3 - 6 + 2 + + + + + + + 20 42 17 10 22 30 ii +10 87 r +13 48 +11 90 + 18 53 r +17 87 + 3 118r + 15 60 +23 74 +ii 77 99 r 76 103 66 94 132 66 87 81 97 67 104 68 95 121 71 95 86 Stocks of goods Total of all lines........................... Boots and shoes........................ Drugs.......................................... Dry goods.................................. Electrical supplies................... Groceries.................................... Hardware................................... Jewelry....................................... Paper.......................................... 68r 28 116 43r 92 68 67 69 59 70 30 110 42 r 106 78 73 56 61 73 73p 30 27 113 119 45 43 110 123p 78 75 80 76 59 64 60 61 + 1 - 9 + 6 - 4 +12 - 4 - 5 + 8 + 0 + 8 - 2 + 3 - 1 + 32 + 10 + 12 - 8 + 3 70r 26 117 42r 100 74 63 70 59 73 30 113 46 r 113 78 71 60 63 76 75p 29 25 116 120 47 42 123 132p 84 81 76 70 62 64 62 61 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............................. + 5* 35 65 56 46 83 r 17 80 26 153 92 71 48 87 116 135 44 43 27 58 94 81 125 99 r 18 66 35 243 97 67 56 133 123 138 56 53 29 85 65 48 85 61 85 123 126 82 73 147 100 83 89 59 98 68 91 156 110 91 87 155 123 58 95r 69 120 105r 19 75 37 287 102 70 56r 130 105 137 64 53 33 59 98 68 125 112 23 79 37 263 101 80 56 146 105 146 64 53 34 + 0 + 4 - 1 + 4 + 7 +19 + 5 + o - 9 - 1 + 13 - 1 +13 - 0 + 6 + 0 0 + 3 — 0* 87 95 + 9 43 47 + 8 57 62p + 9 98 96 - 1 69 72 + 5 98 94 - 4 144 138 - 4 101 122p +21 98 100 + 2 83 r 83 0 151 173p +15 124 130 + 5 * Computed from data unadjusted for seasonal variation. Page Eight lOlp 48 108 75 lOlp 129 73 96 85 SHOES Rate of stock turnover 11 months (actual, not indexes) Output of manufactures + 17 5.34 + 67 +74 35 + 50 +42 63 + 21 +32- 57 +173 +92 43 + 35 +21 88 r + 33 +34 15 - 2 +34 74 + 45 +60 24 + 72 +92 153 + 9 - 2 93 77 + 12 - 1 + 17 +21 50 + 68 +1« 99 - 10 - 7 132 + 8 +14 136 + 45 +40 43 + 22 +33 43 + 30 +29 27 + 2* + 3* 89 + n +17 93 - 28 +22 42 + 29 +15 52 + 13 + 9 102 + 18 +12 61 + 11 + 5 86 + 12 + 4 116 - 3 - 1 122 + 21 +13 82 + 14 + 14 75 + 18 + 9 147 + 30 +30 96 p—Preliminary. 5.6( 54 89 82 114 109 r 15 63 34 230 97 74 53 147 123 138 66 54 31 88 83 77 78 114 68 90 178 114 91 82 157 118 58 59 95 r 95 73 69 114 116 114r 119 17 20 71 73 35 34 ‘ 276 263 104 102 77 87 58 r 59 148 168 115 119 150r 148 72 63 • 53 53 35r 35 90 r 90 91 105 36 30 75 69p 120 116 71r 72 99 95 155 130 105 118p 99 100 89 r 86 152 174p 121 1125 r—Revised. PETROLEUM REFINING CIGARS
@FedFRASER