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Ketnrirnncnm T" When initialed by those indicated P Marrip□ Hitt KI Attel n Ilac-THE BUSINESS REVIEW RESERVE DISTRICT JANUARY i, 1938 THIRD FEDERAL PHILADELPHIA FEDERAL RESERVE BANK OF PHILADELPHIA v Business and Banking Conditions in the United States k Y decreased by substantially more than the usual seasonal amount, and there was some decline at automobile fac tories, although an increase is usual at this season. There were declines also in the seasonally adjusted indexes for most other lines, except foods and tobacco which showed little change. Agriculture. Department of Agricul ture estimates recently issued indicate that most crops will be about the same size as forecast earlier but that cash farm income will be lower than had been anticipated, largely because of price declines both for crops and live stock. Cash income in 1937 is ex pected to be $8,500,000,000, as com- In November, volume of industrial production continued to decline sharply, and employment and payrolls also decreased. During the first half of November commodity prices de clined further but for the past month they have been steady. Production and employment. Volume of industrial output, as measured by the Board’s seasonally adjusted in dex, declined from 103 per cent of the 1923-1925 average in October to 90 per cent in November, reflecting chiefly a sharp reduction in the manufacture of durable goods. There was a further curtailment of activity at steel mills and output for the month was at a rate of 38 per cent of capacity, a de cline of one-third from October. In the first three weeks of December steel production was at about 28 per cent of capacity. Output of lumber and plate glass also declined substantially in November, and automobile production showed considerably less than the usual seasonal increase. Production of non durable goods, which had decreased by a substantial amount earlier this year, declined further in November, reflecting a continued reduction in out put of textiles and shoes, partly offset in the total by an increase in activity at sugar refineries. Output of miner als, as well as manufactures, declined in November. There were marked decreases in output of bituminous coal and in iron ore shipments, while crude petroleum production continued in large volume. Total value of construction contracts awarded, as reported by the F. W. Dodge Corporation, showed little change in November and the first half of December. Awards for privatelyfinanced projects declined, reflecting chiefly a further reduction in resi dential building, while contracts for publicly-financed work increased. Employment and payrolls at fac tories showed an unusually sharp de cline between the middle of October and the middle of November, and there were decreases also in the number employed in trade and other nonmanu facturing lines. The Board’s season ally adjusted index of factory employ ment was at 94 per cent of the 1923-1925 average in November as compared with a level of 102 last sum mer and 96 in November last year. In the steel, machinery, lumber, and textile industries the number employed Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934, to December 15, 1937. INDUSTRIAL PRODUCTION FACTORY EMPLOYMENT AND PAYROLLS WHOLESALE PRICES PERC MEMBER BANK CREDIT PERCENT 140 Employment 1923-2! 80 JU 70 70 1929 1930 1931 1932 1933 1934 1935 1936 1937 Index of physical volume of production, ad justed for seasonal variation. By months, Jan uary 1929 to November 1937. 1929 Indexes of number employed and payrolls, without adjustment for seasonal variation. By months, January 1929 to November 1937. Indexes compiled by the United States Bureau of Labor Statistics. 1930 1931 1932 1933 1934 1935 1936 1937 Index 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 18, 1937. ^^ pared with $7,918,000,000 in 1936. The increase over a year ago is due pri marily to increased income from marketings of wheat, tobacco, and fruits and to larger Government pay ments. Distribution. Distribution of com modities to consumers, which earlier had been maintained, declined slightly in November. There was a slight de cline in sales at department stores, and mail order sales decreased consider ably, while sales at variety stores showed little change. Preliminary in formation for the first half of De cember indicates that department store sales increased by approximately the usual seasonal amount. Freight-car loadings declined by considerably more than the seasonal amount in November and the Board’s adjusted index for that month was 71 per cent of the 1923-1925 average as compared with 76 per cent in October and an average of 81 per cent in the first half of the year. The decline from October to November reflected principally marked decreases in load ings of coal and miscellaneous freight. Commodity prices. The general level of wholesale commodity prices, which had declined sharply from the latter part of September to the third week of November, has shown little change since that time. Prices of nonferrous metals, leather, wool, textile yarns, and finished cotton goods have declined somewhat further in this period, while steel scrap, hides, rubber, cotton, print cloths, and bituminous coal have re ( cently shown some advance. Bank credit. Excess reserves of mem ber banks showed a small decline but for the first three weeks of December remained somewhat over $1,000,000, 000. The increase in demand for currency during December has been smaller than usual, reflecting largely the effects of the sharp decline in bus iness activity and payrolls. Total loans and investments of re porting member banks in 101 leading cities increased somewhat during the four weeks ending December 15, re flecting a growth of $190,000,000 in holdings of United States Government obligations, mostly in New York City. A factor in this increase was the pur chase by banks of the December 15 issues of Government securities. Com mercial loans, which had begun to de cline in October, showed a further reduction. Business and Banking Conditions in the Philadelphia Federal Reserve District Business activity in the Philadel phia Federal Reserve District in the closing months of 1937 declined vir tually to the level prevailing about two years ago. Industrial production decreased 6 per cent more than usual from October to November and a further recession is indicated for De cember. It was also 14 per cent smal ler than in November of the previous year when the rate of production was expanding considerably. The level of output from January through Novem ber, however, averaged about 9 per cent higher than in the same period of 1936. In the building industry, contracts for residences and public works and utilities in November were smaller than a year ago, while nonresidential awards MANUFACTURING were well maintained. However, the aggregate value of building contracts let under private financing during the first eleven months exceeded that in the corresponding months of the previous year. Marketings of farm crops and ani mal products were larger than in 1936. Farm cash income also was greater ap proximately by 11 per cent, even though prices of agricultural products were falling off in the latter part of the year. Retail trade sales during November showed an additional decline, when due allowance is made for the usual seasonal variation, and they were ap preciably smaller than a year before. Insofar as can be determined from the incomplete information for De cember, the dollar volume of Christ mas trade was smaller than in the same season of the previous year. Business at wholesale increased a lit tle from October to November but was fractionally smaller than a year ago. For the eleven months through No vember, however, sales at both retail and wholesale were larger than for the same time in 1936. This latter com parison also characterizes other in dicators which measure distribution of goods and services, including sales of automobiles, life insurance, commercial hotel activity and the movement of railroad traffic. Industrial employment and payrolls, as shown by the figures covering twelve branches of trade and industry, declined sharply from October to No vember, and changed little from a year OUTPUT OF MANUFACTURES BY CLASSES ACTIVITY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT r PERCENT CONSUMERS’ GOODS PRODUCTION (aDJ. FOR SEAS- VAR.) EMPLOYMENT DURABLE GOODS PAYROLLS 1932 Page Two 1933 1934 1935 1936 1937 1932 1933 1934 1935 1936 1937 ago. Incoming reports for December Business Indicators also indicate that additional declines in Philadelphia Federal Reserve District factory employment, payrolls and work ing time were widespread, reducing the Index numbers: percentages of the 1923-1925 average as 100 levels to below those prevailing a year Adjusted for seasonal variation Not adjusted Adjusted indexes allow for the usual before. seasonal change in activity. Per cent change Commodity prices generally have Unadjusted indexes reflect merely the declined somewhat, but quotations for actual Nov. 1937 1937 change which may or may not Nov Sept. Oct, Nov. from from Nov Sept. Oct. Nov. be typical. basic raw materials have shown stabil 1936 1937 1937 1937 1936 1937 1937 1937 11 Month Year rrios. ity since the latter part of November. 1936 ago ago Inventories at trade and industrial es Industrial production......... 86 93 91 80p + 9 95 92 90 6 82 p -14 tablishments as a rule have been de Manufacturing—total............... +10 91 89 84 77p - 8 93 -15 91 87 79p Durable goods.......................... 89 91 85 clining, largely because of reduced 77p -10 + 19 -14 Consumers’ goods................... 93 r 89 82 76p - 7 + 4 -18 output, although they still appear to Metal products...................... 100 106 95 ' 81 -14 +23 100 106 98 81 -19 Textile products.................... 93 80 72 62p -14 97 r 81 75 -33 64p be larger than a year ago. Transportation equipment. 88 87 96 92 83 92 - 4 + 5 + 16 85 89 Food products........................ 77 80 75 77p + 3 + 5 79 85 80 + 0 78p Manufacturing. The recession in Tobacco and products......... 98 100 93 95 + 6 117 116 113 113 + 2 - 3 Building materials................ 42p - 1 48 43 42 46 44 -14 + 19 48 41p manufacturing activity has deepened Chemicals and products___ 128 130 130 129p - 1 + 11 128 129 132 129p + 1 Leather and products.......... considerably since the middle of last 126 122 100 98p - 3 -22 134 106 + 8 120 93p Paper and printing............... 91 93 92 89 + 10 91 93 93 - 3 90 - 1 month. Sales of factory products have Coal mining................................. 71 r 55 57 64p + 13 - 7 74 r 56 71 - 9 67p Anthracite............................... 52 69 r 55 65p 9 71r 70 +18 53 67p - 6 fallen off sharply and current purchases Bituminous............................. 86 79 72 59 -17 -31 + 6 95 81 77 65 Crude oil...................................... 532 518 520 461 are restricted largely to odd lots for + 0 +13 + 15 447 532 518 504 Electric power immediate requirements. In a few Output..................................... 232 246 237 233 - 2 + 7 241 241 244 242 + 0 Sales, total!............................ 233 244 234 231 + 8 240 242 234 238 - 1 ~ 1 lines there have been some short-term Sales to industries £............... 181 171 178 164 + 8 181 172 168 - 7 - 9 184 commitments but in general there has and wages—Pa. been no forward buying of any con Employment Factory—Wage earners.................. 86 — 5* - 2* + 11* 88 r 92 91 Payrolls.......................................... -13* - 4* +27* 86 98 r 95 83 sequence for several months. As Man-hours (1927-28 =100).... -14* -18* +16* 91 90 87 75 might be expected, in the absence of General (1932=100) Employment................................. 121 121 3* + 9* + 0 * 125r 126 sustained demand, the volume of un Payrolls.......................................... -10* - 1* +22* 167 183 185r 166 filled orders has continued to decline Building and real estate and is now much smaller than a year Contracts awarded!—total............. 59 52 55 59 51 57 + 7 + 1 + 3 59 59 Residential!..................................... 45 44 40 37 - 8 -18 40 40 38 + 10 47 ago. Non-residentialf............................ 46 59 74 75 + i +63 57 72 + 18 49 80 Public works and utilities!......... 104 Stocks of finished goods have been 65 73 71 - 9 -37 -24 117 73 67 69 Permits for building—17 cities.. . . 17 28 21 23 22 -16 +40 +36 15 19 28 reduced in recent weeks, partly through Real estate deeds—Philadelphia! • 51 62 67 61 +21 + 3 +24 50 58 58 61 Writs for Sheriff sales—Phila......... 460 493 509 328 -36 -29 8 515 572 367 254 curtailed operations. Inventories of raw materials at plants likewise have Distribution Retail trade —sales................... 79p — 5 85 90 83 - 8 85 95 + 5 100 92p decreased and appear to be smaller stocks................ 80p - 4 +10 73r 85 83 88 91p 83 92 Wholesale trade—sales................... 89 88p + 3 93 86 - 0 +14 102 106 99 lOlp than a year ago. Current reports in stocks................ 71r 72 78 77 73 r 75 82 80 - 0 + e dicate that this has been especially Life insurance sales......................... 100 100 107 96 -11 - 4 + 4 106 80 98 101 New passenger auto, registrations. + 12* - 6* + 15* 108 114 90 101 true in the case of plants manufactur Hotels—Occupancy.. . (1934 =100) — 5* + 4* + 8* 121r 131 131 126p Income, total. (1934 =100) + 6* + 9* + 5* 135r 128 139 147p ing iron and steel products, textiles, Freight car loadings—total........... -10 -21 + 9 77 61 81 74 Merchandise and miscellaneous some of the leather products, and - 9 -19 + 10 75 80 72 61 Coal................................................. 68 7 -17 + 3 77 82 71 building materials. Prices quoted by reporting firms for Business liquidations Number............................. -22* -24* -11* 52 34 51 39 their products have been reduced fur Amount of liabilities___ -47* -19* +72* 20 10 31 16 ther and in many, instances are below Payment of accounts the level of a year earlier. The price Check payments.................... 85 86 96 87 80 - 7 -16 + 6 102 81 89 Rate of collections (actual) index compiled by the Bureau of Labor Retail trade........................ + 2 + 3 33 28 33 34 Wholesale trade................. Statistics for commodities comprising - 2 + 1 73 81 78 74 chiefly manufactured products which Prices—United States Wholesale (1926=100). - 2* + 1* + 8* 82 87 85 83 are sold in various markets through Farm products............... - 6* -11* + 9* 85 86 76 80 Foods............................... out the country was 83.7 per cent of - 3* - 1* + 5* 84 88 83 85 Other commodities.... - i* + 4* + 8* 81 86 84 85 the 1926 average in the week ended Retail food....................... - 2* + 1* + 4* 82 86 85 84 Philadelphia................... 4* 2 * + 4* 88 83 85 87 December 18, compared with 84.2 four Scranton.......................... - 3* - 3* + 4* 80 81 80 77 weeks earlier and a high for this year % change from of nearly 87 in April. A year ago Nov. Aug. Sept. Oct. Nov. (In millions of dollars) 1936 1937 this index was about 82. 1937 1937 Month 1937 Year ago ago The number of wage earners en Banking and credit gaged in manufacturing in this district Federal Reserve Bank i 2.6 Bills discounted.............................. i 0.2 5 0.8 > 0.9 decreased 5 per cent and wage dis ! 2.1 + 1,200 +24 Other bills and securities............. 217 214 217 217 219 + 2 + 1 bursements declined 12 per cent from Member bank reserves................. 397 369 360 365 361 9 - 1 Reserve ratio (per cent)............... 73.3 72.9 72.5 72.5 72.3 the middle of October to the middle - 0 1 Reporting member banks Loans................................................. ! 444 I 474 > 479 i 469 of November. Further sharp reduc 464 + 5 - 1 Investments..................................... 732 708 692 681 8 677 1 tions in employment, payrolls and Deposits (a)..................................... 1,480 1,394 1,374 1,374 1,353 - 2 9 Bankers’ acceptances outstanding. 13.1 13.5 14.6 15.8 16.1 + 23 + 2 working hours are indicated by the * Computed from data unadjusted for seasonal variation, p—Preliminary. r—Revised, preliminary data for December. These t Not included in production index. (a) Less cash items in process of collection, changes have been considerably less t 3-month moving daily average centered at 3rd month. Page Three INDUSTRIAL FUEL AND POWER OUTPUT OF METAL PRODUCTS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT ELECTRIC POWER USED BY INDUSTRIES ELECTRICAL _ APPARATUS STEEL PRODUCTS FUEL OIL OUTPUT' l» . ' Mr 1932 1933 1934 1935 favorable than usual for this period. November was the first month this year in which employment and pay rolls showed decreases as compared with 1936. However, in the first eleven months of 1937 the average number of wage earners employed at factories was 11 per cent larger than a year ago and wage payments were nearly 27 per cent greater. The preliminary index of employ ment in Pennsylvania factories in No vember was 86.1 per cent of the 1923-1925 average and that of payrolls 83.2. These indexes were 2 and 4 per cent respectively smaller than in No vember 1936. The average weekly earnings declined to $23.40 as compared with $25.45 in the previous month and a little over $24.00 in November 1936. The number of average hours actually worked was 33.5 a week as against 36.3 in October and a high of 41.1 in March. A year ago working time of wage earners averaged 40.7 hours. The number of wage earners and the amount of wages disbursed in Dela ware factories declined respectively 10 and 8 per cent from October to No vember. Substantial decreases also occurred in plants located in southern New Jersey. In both these sections of the district employment and wage pay ments were smaller than a year ago. Output of factory products in this district again declined sharply during November and a further recession in December is indicated by the prelim inary figures. The adjusted index of productive activity dropped to 77 per cent of the 1923-1925 average'as com pared with 84 in October, 89 in Sep tember and a high of 98 in April. A year ago this index number was 91. The average rate of productive activ Page Four 1936 1933 1934 BITUMINOUS COAL OUTPUT 1937 1935 1937 ity in manufacturing during the first eleven months of 1937, however, was still 10 per cent higher than in the same period of 1936. Decreases in output during the month and as compared with Novem ber 1936 were drastic at plants pro ducing durable and nondurable goods. The most pronounced declines oc curred in industries manufacturing metal and textile products. Groups comprising food and tobacco products were the only ones that showed some improvement over October. Production of electric power, after seasonal adjustment, declined somewhat from October to November. In the first eleven months this year, output and sales of electric power were about 8 per cent larger than in the same period of 1936. Coal and other fuels. The market for anthracite has been more active lately, as evidenced by a greater demand for steam and domestic fuels. Output of collieries decreased less than usual in November and showed a small gain in the first half of December. Shipments, on the other hand, declined appreciably in November, following substantial gains in the two previous months. Pro duction was 9 per cent smaller in the first eleven months this year than last and shipments were about 3 per cent less. Demand for Pennsylvania bitu minous coal has increased somewhat since the middle of last month, owing principally to larger takings by rail roads. Compared with a year ago, however, total sales to industrial con sumers have been smaller. Produc tion declined sharply in November but increased slightly in the first fort night of December. Output of mines (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 =1U0) Prices......... (1926 =100) Per cent change from 1937 Month Year ago ago 178,000 167,900 2,437t 79.8 97,278 - 5 -13 + 2 + 1 - 1 - 6 7 1 3 2 311,755 26,481 99.2 129,803 -15 -10 - 0 - 2 -31 -17 + 2 - 1 99.3 105.4 -17 + 0 -20 + 8 146.2* 74.1 + 2 + 3 + 8 + 6 Source: Bureau of Mines and Bureau of Labor Statistics. * Estimated. f 1st of month. was 31 per cent less in November this year than last and it was the smallest for that month since 1934. Shipments likewise showed a marked decline as compared with October and a year ago. Production in the first eleven months of 1937 was 6 per cent greater than a year earlier and shipments were about 3 per cent larger. Output of by-product coke has de clined sharply since the third quarter of this year and in November was the smallest since early in 1936. Produc tion of gas and fuel oils, on the other hand, has expanded considerably dur ing the past three months and was 8 per cent greater in November this year than last. Building. Awards of building con tracts in this district in November amounted to nearly $16,400,000. This total was a little larger than in Octo ber and 16 per cent greater than a year ago. Contracts awarded for nonresidential buildings and public works and utilities increased substantially in the month but much of this gain was PERCENT BUILDING CONTRACTS-VALUE PRIMARY DISTRIBUTION PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PER CENT PUBLIC WORKS AND UTILITIES WHOLESALE DOLLAR SALES TOTAL RESIDENTIAL NON-RESIDENTIAL SHIPMENTS OF MERCHANDISE AND MISCELLANEOUS COMMODITIES 1932 1933 1934 1935 1936 1937 1932 1933 1934. 1937 1935 Source: F.W. Dodga Corp. offset by a sharp reduction in contracts let for dwellings. Compared with a year ago, awards for nonresidential buildings were much larger, except for factory construction, while those for residences and public works and util ities showed marked declines. In the first eleven months of 1937 the contract total approximated $160, 500,000, or 3 per cent more than in the same period last year. Despite pro nounced decreases since September in the contemplated construction of one- and two-family houses, awards for this type of dwelling have been 12 per cent greater thus far this year than last. Contracts let for nonresidential buildings, including factories, com mercial structures and hospitals like wise have continued substantially larger than in 1936. The value of contracts awarded for educational buildings and public works and utili ties, on the other hand, has declined sharply as compared with a year ago. Building contracts Philadelphia Federal Reserve District Per cent change Nov. 1937 1937 (000’s From from omitted) month 11 ago mos. 1936 Residential........................... $ 3,157 Apts, and hotels............. 383 Family houses................. 2,774 Nonresidential.................... 9,897 Commercial..................... 1,432 Factories.......................... 406 Educational..................... 680 All other........................... 7,379 -34 +10 -73 -18 + 17 +20 -36 +30 +21 - 1 +12 + 18 +12 +88 -28 +52 Total buildings........... $13,054 Public works and utilities. 3,337 - 1 +15 +31 -24 Grand total................. $16,391 + 4 + 3 Source: F. W. Dodge Corporation. Wholesale prices of building mate rials have been declining for about six months, although such items as struc tural steel and cement show no change. Decreases in recent weeks reflected chiefly lower quotations for brick and tile, lumber, and certain unclassified materials used in building and con struction. Distribution, trade and service. Dol lar sales by department, apparel, shoe and credit stores were 8 per cent less in November this year than last. In the case of department stores, a small gain at Philadelphia establishments was more than offset by losses else where, so that in the district as a whole sales declined 2 per cent as compared with a year ago. In other reporting lines decreases ranged from 6 per cent at shoe stores to 17 per cent at credit stores. Over the first eleven months total dollar sales were 5 per cent larger than a year ago: Sales in No vember showed some decline as com pared with October, although a small increase is customary. Wholesale trade sales in November showed virtually no change as com pared with a year ago, but they were 14 per cent greater in the first eleven months this year than last. The value of sales in eight important branches increased a little more than usual in November, so that the adjusted index rose to 88 as compared with 86 in October. Stocks of goods at retail declined, although an increase from October to November is customary. Inventories of merchandise in wholesale lines also decreased. At the end of November stocks in both channels of trade were about 9 per cent larger than a year ago. Sales of new passenger automobiles in this district increased somewhat in November over October but decreased 6 per cent as compared with a year ago. In the first eleven months of 1937 they were 15 per cent greater than in the same period last year. Freight car loadings in this section decreased further in November, ow ing mainly to smaller shipments of merchandise and miscellaneous com modities, and coal, and in that month were one-fifth fewer than a year ago. For the year to date, however, they were 9 per cent larger than in the first eleven months of 1936. The volume of rail freight consisting chiefly of manufactures originating in the Phil adelphia industrial area declined more sharply than usual from October to November and was nearly 7 per cent smaller than a year ago. Room occupancy of non-resort com mercial hotels showed some decline in November but was 4 per cent higher than a year before. Hotel business Philadelphia Federal Reserve District Room occupancy.... Per cent of capacity used: Nov. 1937................. 54 .9 Oct. 1937................. 61.0 Nov. 1936................. 56.3 Income from: Guest rooms............. Food.......................... Other sources.......... Total revenue... . Nov., per cent change from 1937 from Month Year ago ago mos. 1936 - 4 - 5 + o + 4 +8 - 6 +12 11 +28 + 5 + 9 + 6 + 9 +7 +4 +2 +5 Banking conditions. Reserves of member banks declined from an aver age of $363,000,000 in the first half of November to $349,700,000 in the first half of December. Excess reserves de creased from $59,800,000 to $50,100,000. Most of the decrease was at reserve city banks. Page Five Reserve balances of member banks (Dollar figures in millions) Held Re Ex quired cess Ratio of ex cess to re quired Reserve city banks November 1-15......... $218.4 $187.1 $31.3 17% November 16-30......... 216.1 . 187.2 28.9 15“ December 1-15......... 207.4 184.6 22.8 12“ Country banks November 1-15......... 144.6 116.1 28.5 25“ November 16-30......... 142.5 115.3 27.2 24“ December 1-15......... 142.3 115.0 27.3 24“ Half of the decline of $12,000,000 in member bank reserves in the three weeks to December 8 was regained in the following week. The net decrease of $6,000,000 was due partly to a sea sonal growth in currency demand ag gregating $13,900,000. This expansion in currency was substantially smaller than the increase of $19,500,000 last year, when business activity and pay rolls were sustained at higher levels. Operations of the Treasury also con tributed to the reduction in reserves. Receipts of the United States Govern ment, including considerable sums in connection with income and railroad employees’ compensation taxes, as well as unemployment insurance funds, ex ceeded local disbursements by $11, 700,000. Reduction of member bank reserve deposits through these transactions was partly counteracted by a favorable balance of $12,800,000 in commercial and financial transactions with other districts, the release of $4,100,000 from miscellaneous deposits at the reserve bank, and a rise in reserve bank credit. This bank’s holdings of United States securities increased $800,000 to $216,800,000, owing to participation in additional purchases made by the System during the first week of the period. An increase of $3,500,000 in reserve bank credit extended locally was due chiefly to a rise in float, which represents the extent to which credit has been given by the reserve bank for checks before payment has been re ceived. There was a further rise of $800,000 to $3,200,000 in discounts for member banks. United States Government deposits increased $17,000,000 at the weekly reporting banks as a result of payment by deposit credit for a portion of the new securities allotted to them. There were declines, however, in interbank, demand and time deposits aggregating $34,000,000, owing partly to disburse ments from Christmas savings accounts and payments to the Treasury. Funds to meet the loss in deposits were sup plied from reserves, which declined $6,000,000, and by the liquidation of Page Six Federal Reserve Bank of Philadelphia (Dollar figures in millions) Dec. 15, 1937 Bills discounted......... $ 3.2 Bills bought................ 0.3 Industrial advances. . 3.7 United States securi ties .......................... 216.8 Total bills and se curities ................... $224.0 Federal reserve note circulation............. 323.4 Member bank reserve deposits.................. 353.5 U. S. Treasurer — general account... 21.3 Foreignbank deposits 21.1 Other deposits............ 2.1 Total reserves............. 520.1 Reserve ratio.............. 72.1% Changes in— Four weeks Reporting member banks (000,000’s omitted) One year +$0.8 - 0.0 + 0.1 +$2.7 - 0.0 - 1.1 Assets Commercial, industrial and agricultural loans: + 0.8 + 7.8 +$1.7 +*9.4 Otherwise secured and unsecured........................ Open market paper.............. Loans to brokers and deal- + 7.9 + 8.7 Other loans to purchase or - 6.0 -24.7 + 16.1 - 5.0 - 4.i + 5.3 - 0.2% +16.4 +15.6 + 0.4 + 4.5 - 1.0% investments. Despite the allotment of United States securities on the 15th, holdings of direct obligations decreased $4,000,000; declines in other invest ments consisted of $2,000,000 in obli gations guaranteed by the United States and of $6,000,000 in other se curities, chiefly issues of corporations and political units. Total loans of the reporting banks show no change in four weeks ended December 15. A rise in commercial loans during the last week largely off set a decrease of $6,000,000 in the first three weeks, so that the net change was a decrease of $1,000,000. There also was a decline of $2,000,000 in open market paper, but a growth of $3,000, 000 in unclassified loans. Following a substantial expansion in demand and time deposits during 1936, demand deposits have declined in the first eleven months of this year, largely through withdrawals of Gov ernment and interbank deposits, while time deposits have increased. This growth in time deposits reflected such influences as the transfer of deposits from demand to time in consequence of the discontinuance of interest pay ments on demand balances of public bodies and savings institutions be ginning with August 24, accumulation of savings, and the shift by individual depositors from demand to time de MEMBER BANK RESERV! Philadelphia Federal Reserve District (Millions of dollars) Changes in— Dec. 15, 1937 $ One year Four weeks 44 170 20 -* i - 2 19 -$ 8 36 60 - 2 2 Other loans: On securities...................... Otherwise secured and unsecured........................ United States Government securities.......................... Obligations fully guar, by U. S. Government......... Other securities..................... $ 50 + i 61 + 2 * * +$18 462 310 - 4 - 34 92 263 - 2 6 - 1 - 41 Total loans and investments................. $1,127 Reserve with Federal Re222 serve Bank...................... 20 Balances with other banks 136 — *12 —*58 + + 6 - 41 2 i - 47 Liabilities Demand deposits, adjusted $ Time deposits........................ U. S. Government deposits Interbank deposits............... 785 271 25 260 -$11 -15 + 17 - 8 — *35 + 4 - 47 - 69 25 227 + + 88 Other liabilities..................... 2 i * Comparable figures not yet available. posits for the purpose of obtaining interest. The following figures indicate the trend of deposits by classes of banks: Deposits at member (000,000’s omitted) Dec. 16-30 1936 Jan. 1936 Nov. 16-30 1937 Reserve city banks: Demand............................ $1,081 $1,183 $1,028 246 232 217 Time.................................. Gross............................. $1,298 $1,415 $1,274 Country banks: Demand............................ $ Time.................................. 501 $ 810 628 $ 831 568 872 Gross............................. $1,311 $1,459 $1,440 Outstanding acceptances of banks in this district increased from $15,844,000 to $16,079,000 during November, re flecting a rise of over $300,000 in bills covering domestic shipments. The to tal at the end of the month was $2,900, 000 greater than a year ago. AND RELATED FACTORS Changes in weeks ending— Changes in four weeks Nov. 24 Dec. 1 Dec. 8 Dec. 15p Commercial transfers (chiefly interdistrict).... +2.8 -2.7 +3.7 +1.1 -7.8 +2.7 - 0.3 +10.7 -10.8 - 0.1 + 12.6 - 7.3 + 3.5 +12.8 -11.7 Total ........................................................................ +3.8 -4.0 - 0.4 + 5.2 + 4.6 +5.8 — 1.6 -0.5 +0.1 +1.6 -5.1 -0.4 -0.1 + 5.1 — 5.3 0.3 + 0.1 + + + 2.9 0.7 +13.9 - 6.0 - 4.1 + 0.8 +3.8 -4.0 - 0.4 + 5.2 + 4.6 Sources of funds: Uses of funds: p—Preliminary. 1.4 6.0 Employment and Payrolls in Pennsylvania CURRENCY DEMAND PHILADELPHIA FEDERAL RESERVE DISTRICT (Changes cumulMed from Jan. 1,1932) MILLIONS MILLIONS (All figures are rounded from original data) -+IOO Manufacturing Indexes 1937 1936 JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT OCT. NOV DEC. DEPOSITS REPORTING MEMBER BANKS PHILA. FED. RES. DISTRICT Employehours t 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 1937 1937 ed proportionately.) index Nov. Oct. index Nov. Oct. 1936 1937 1936 1937 Nov. 1937 per cent change from 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........................... - 9 + 8 -14 + 3 + 4 -13 -18 -10 - 3 -13 -13 -15 - 4 -12 -12 - 8 -12 - 5 - 3 -18 -20 - 9 - 9 -28 -28 -31 - 3 - 9 -18 -14 -21 — 5 +1 -14 -17 -10 - 4 -14 -14 -16 - 3 -14 -10 -12 -12 — 5 - 2 + 4 -15 + 4 - 2 -19 -12 - 1 -26 - 7 - 1 -19 -12 86 - 2 84 + 5 119 + a 68 - 2 94 -12 92 -10 105 -19 105 - 2 85 +12 61 - 9 94 + » 83 -11 100 + 3 95 + 2 Cigars and tobacco.. . . Rubber tires, goods. . . Musical instruments . . 70 79 54 - 1 - 6 + 0 - 5 - 7 — 0 + 0 - 7 - 5 -12 - 3 - 4 - 7 - 3 - 8 - 1 + 0 83 86 133 66 79 78 81 107 79 53 99 - 0 - 5 - 4 68 66 99 96 74 53 - 4 - 4 + 5 -18 -17 -24 + 7 +10 Nov. Oct. 1936 1937 MILLIONS * Figures from 2,336 plants. f Figures from 2,092 plants. DEMAND (adjusted) General Index Numbers Covering twelve branches of trade and industry INTERBANK Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) U.S. GOVERNMENT General index (weighted)... 1937 1936 Percentage change—November 1937 from November 1936 City areas* Manufacturing Employ ment Allentown............. Altoona................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre. . . . Wilmington.......... + + + - 1 7 8 9 3 3 +1 - 6 - 2 - 4 - 1 - 4 -11 Nov. 1937 index Wage payments Building permits (value) - 2 -21 + 9 -15 - 2 + 0 - 5 - 9 - 7 - 7 + 3 0 -16 - 48 +347 + 90 + n - 80 + 108 - 58 - 40 + 92 + 3 - 34 - 20 - 48 Debits Retail trade sales + 0 - 8 -23 +12 +1 + 16 + 2 -17 - .1 - 6 +20 - 3 - 9 -14 - 6 +12 121 Manufacturing............................. Anthracite mining....................... Bituminous coal mining............. Building and construction........ Quarrying and non-met. mining Crude petroleum producing . . . Public utilities........ 1................... Retail trade................................... Wholesale trade........................... Hotels............................................. Laundries....................................... Dyeing and cleaning................... Per cent change from Nov. 1936 100 121 +0 -2 -2 -1 +8 -1 +2 +8 -0 119 115 105 105 +4 +7 +4 +3 136 82 122 92 116 164 Oct. 1937 -3 -5 -1 -2 -3 -7 +1 -0 -0 -0 -1 -2 -5 Payrolls Nov. 1937 index 166 202 84 209 122 187 173 108 135 120 130 122 119 Per cent change from Nov. 1936 Oct. 1937 - 1 - 4 —10 +12 - 8 +12 -14 + 7 + 9 + 7 + 6 + 9 +13 +u — 13 — 12 — 9 -22 + 0 — 1 + 1 - 1 + 1 — 2 -11 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA I-MANUFACTURING INDUSTRIES AND SERVICES PERCENT +1 -11 - 7 -a - 7 -11 + 6 PAYROLLS 150 — November 1937 from October 1937 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre.... Williamsport . . . . Wilmington.......... York....................... - 7 - 1 — — - 5 6 4 5 4 3 2 7 1 5 S -15 - 1 -14 -24 - 8 - 8 -12 -11 - 8 -15 - 5 - 6 -17 - 72 + + - 56 78 17 28 8 67 60 56 25 63 81 77 -15 -14 -13 -11 -12 + 6 -15 - 9 + 6 - 1 - 3 -15 - 9 -12 - 7 -11 , if 1#* 1».*v* -11 EMPLOYMENT - 2 - 7 -11 -20 - 7 -12 1932 * Area not restricted to the corporate limits of cities given here. 1933 1934 1935 Page Seven Index numbers of individual lines of trade and manufacture RETAIL TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Not adjusted Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Per cent change Unadjusted indexes reflect merely the Nov Oct. Nov actual change which may or may not 1036 Sept 1937 1937 1937 be typical. Nov. 1937 from 1937 from Nov. Sept Oct. Nov 1936 1937 1937 1937 DEPARTMENT STORES 11 Month Year ago ago mos. 1936 Retail trade Sales Total of all stores. . . Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... 85 79 78 103 80 r 96 r 90 83 76 74 84 81 132 110 92 87 104 92 Stocks of goods Total of all stores. . . Department........... Women’s apparel. Shoe......................... Credit...................... 73 r 56 103r 67 96 r 85 83 80p 60 59p 61 116 102 105 71 76 71 116 114 104 79p 78p 67 94 75p 80p 5 + — — — — _ _ + + 17 15 14 13 - 8 - 2 -14 - 9 - 6 -17 4 +10 2 + + + + 6 4 0 9 + + + + + + 5 100 5 91 7 89 6 125 i 78r 0 123r 83 66 5 127r 70 109 r 2 6 8 Rate of stock turnover 11 months (actual, not indexes) - 7* 85 95 92p 75 85 89p 70 85 77 114 123 113 94 89 73p 99 112 102p stocks" men’s apparel stores 88 92 91p 64 68 69p 126 129 129 78 75 81 118 121 117 3.72 STOCKS 3.4 Wholesale trade Sales Total of all lines .... Boots and shoes. . . Drugs...................... Dry goods....... Electrical supplies. Groceries................ Hardware............... Jewelry.................... Paper....................... 89 46 107 r 59 r 76r 119 66 67 81 93 44 112 49 96 125 63 95 74 86 88p + 3 36 31 — 12 109 106p — 3 8 50 46 85 88p + 4 124 115 + 8 63 61 4 59 69 — 15 74 + 5 71 - 0 -31 - 1 -22 +16 + 5 - 8 -12 - 9 +14 102 48 -11 +10 llOr 76 r +12 +52 98 r 129 + 6 + 9 73 + 19 96 + 12 85 women’s apparel stores 106 99 lOlp 63 44 33 116 106 109p 65 67 60 115 109 Hop 139 125 135 66 72 67 118 92 84 76 75 78 STOCKS Stocks of goods Total of all lines.... Boots and shoes. . . Dry goods....... Electrical supplies. Groceries................ Hardware............... Jewelry................... Paper....................... 71r 27 43 111 r 74r 76 64 61 72 78 77 37 30 24 50 50 50 105 112 123 78 81 71 83 85 83 60 68 72 58 64 61 0 _ 21 + 0 + 10 + 9 -13 + 16 + 10 5 3 7 4 + 10 +13 - 4 _ — + Ra te of stock turnover 11 months (actual, not indexes) Output of manufactures Pig iron........................................ Steel.............................................. Iron castings............................... Steel castings.............................. Electrical apparatus................. Motor vehicles................... .. . .. Automobile parts and bodies. Locomotives and cars............... Shipbuilding................................ Silk manufactures...................... Woolen and worsteds............... Cotton products........................ Carpets and rugs....................... Hosiery......................................... Underwear................................... Cement......................................... Brick.............................................. Lumber and products............... Bread and bakery products... Slaughtering, meat packing... Sugar refining............................. Canning and preserving.......... Cigars............................................ Pa,per and wood pulp... Printing and publishing. Shoes............................ Leather, goat and kid. . , Explosives......................... Paints and varnishes. . . Petroleum products.... Coke, by-product............ 75 38 oo 112 71 81 65 65 82 80 30 22 o2 48 125 133 87 85 81 77 71 73 62 58 7.06 59 91 98 102 69 72 125 143 112 117 23 20 79 69 35 42 263 264 101 92 80 48 56 59 r 146 91 105 109 146 110 64 47 57 58 34 32 95 47 62 96 72 94 138 114 100 84 164 130 90 60 59 99 75 50 87 69 60 59 114 110 118 111 16 21 87 79 43 39 291 284 88 r 80 40 33 49 38 54 44 99 86 104 99 50 55p 54 r 44 33 31 86 30 51 91 70 97 r 72 98 136 111 109 90 94 94 80 84 r 170 174 142 123 33 — 20 — 1 — 4 — 6 + 31 — 9 — 11 — 2 9 _ — 17 — 22 — 20 — 13 — 5 + 10 19 + 5 4* _ 0 87 + 79 + 161 54p + 6 93 + 2 11 63 95 _ — 2 106 _ 5 90p — 0 90 — 5 82 — 2 179p + 3 103 — 16 * Computed from data unadjusted for seasonal variation. Page Eight 73r 25 42 120r 81 r 70 64 61 -14 -30 -14 -12 - 2 + + 9 0 9 8 -20 -59 -32 -70 -18 -33 -15 -24 — 5 + 1* - 9 +69 -14 - 4 -14 +1 -23 -22 -10 - 1 + 9 -20 +54 59 95 +21 + 17 70 +24 116 +25 119 +44 20 73 +12 +34 33 +11 263 + 5 102 -11 87 + 19 59 - 1 168 - 2 119 - 4 147 + 5 63 +27 56 +19 35 + 4* 90 + 4 105 - 8 30 + 3 68 + 4 116 +10 72 +10 95 + 12 130 + 1 111 + 9 100 86 + 9 +10 164 +15 125 p—Preliminary. 7.4 85 97 72 130 129 17 66 40 251 92 52 56 r 99 109 110 55 59 34 94 92 52 77 115 72 97 156 113 94 76 172 136 75 87 63 109 129 14 82 41 279 90 r 43 50 r 59 109 113 56 54 r 32 95 90 26 69 112 shoe stores 51 66 61 103 117 18 72 36 284 81 35 40 48 98 100 54 p 43 33 92 96 51 60p 111 72 63 98 r 96 120 100 93 95 90 r 175 87 p 90 85 179p 120 99 r—Revised. SALES STOCKS
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