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llllllllt B usiness Conditions in the Philadelphia Federal R eserve District FEDERAL RESERVE BANK O F P H ILA D E LP H IA January 2, 1919 HE readjustment to peace conditions is proceeding very rapidly and with much less disturbance to business than was generally expected, especially in industrial lines, where the principal effect of the ending of the war appears to be reflected in the elimination of overtime work. T Retail trade is exceptionally good. This is particularly true among retailers of men’s wearing apparel, several large firms reportting that their business during the past month was at least 25 per cent ahead of the same period last year. Every one had been econo mizing for more than a year, in order to meet the various financial demands arising out of the war. Victory having been secured, the public believes there is no further need for stringent economy, and now feels free to purchase all kinds of goods liberally. Thousands of wage-earners have been released through the closing of munitions plants, but it is generally believed that there will be no surplus of labor. In this connection, it is interesting to note the immigration figures during recent years, which are as follow s: 1912 ................................................... 1,026,360 1913 ................................................... 1,387,318 1914 ................................................... 688,495 1915 ................................................... 258,678 1916 ................................................... 355,767 1917 ............................... 152,960 1918 (8 m o n th s)............................. 74,901 I Coal production is not back to the tonnage maintained before the influenza epidemic. Shipments of anthracite during November, as reported to the Anthracite Bureau of Information, amounted to 5.276,659 tons, as compared with 6,286,366 tons during October and 6,545,313 tons during November, 1917. It is understood that a short age of about 150,000 tons is estimated for Philadelphia, and about 500,000 tons for Pennsylvania. Dealers are having difficulty in obtaining chestnut and stove sizes with which to fill orders on their books. The bituminous market continues weak, and coal men are finding little opportunity for new business. The total freight car movements over the Pennsylvania Rail road at Lewistown Junction during November amounted to 173,786 cars, compared with 197,579 in October and 153,071 in Novem ber, 1917. In the iron and steel trade neither buyers nor sellers are anxious to arrange business for the future, and orders are confined almost wholly to immediate requirements. This is an age of steel; and while conditions in the industry may be unsettled for two or three months, the outlook is decidedly bright. Iron and steel mills have been pushed to the utmost during the past few years. The present let-up in the strain will be welcome, and will permit the plants to be placed in first-class physical condition for the expected large vol ume of after-war business. The outlook for the automobile pleasure car business is consid ered very encouraging, dealers being unusually optimistic as to the future. The textile mills are finishing their Government orders, and the industry is marking time until the raw yarn situation is determined. At the present time the amount of civilian orders on their books is not large. The increased demand for broad silks at retail has cheered the wholesale market. Manufacturers are reported to be sold up on their products for the next two months. There is a good demand for groceries and foodstuffs. Canned goods are generally easier, the stores having been well stocked with them. V STATEM ENT SH O W IN G THE PRINCIPAL RESOURCE A N D LIABILITY ITEMS OF MEMBER BANKS IN PHILADELPHIA, SCRANTO N , CAM DEN AN D WILMINGTON At the close of business Dec. 20.1918 Nov. 15, 1918 (0 0 0 ’s om itted) Number of banks reporting................................... 56 52 United States bonds to secure circulation........ 11,492 11,492 Other United States bonds, including Liberty bonds ................................................................ 74,716 66,965 United States certificates of indebtedness.......... 52,715 46,573 Total United States securities owned........ 138,923 125,030 Loans secured by United States bonds and cer tificates .............................................................. 167,457 162,759 All other loans and investments............................. 619,796 623,124 Reserve with Federal Reserve Bank..................... 63,701 56,530 Cash in vault............................................................ 22,291 21,892 Net demand deposits on which reserve is comPuted .................................................................. 634,332 609,060 Time deposits .......................................................... 18212 15,537 Government d ep osits............................................... 47,114 73,310 STATEMENT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA RESOURCES coin and certificates v a u lt ................................ settlement fund........... with foreign agencies December 20, 1918 $ 6 8 5 ,0 0 0 3 6 ,3 4 2 ,2 6 2 408,021 $ 1 9 3 ,8 3 0 3 2 ,6 5 6 ,7 6 9 408,021 $ 1 8 ,4 2 6 ,9 7 0 2 4 ,8 6 7 ,0 0 0 3 ,6 7 5 ,0 0 0 Total gold held by Bank Gold with Federal Reserve Agent .................................. Gold redemption fund. . . . 3 7 ,4 3 5 ,2 8 3 3 3 ,2 5 8 ,6 2 0 4 6 ,9 6 0 ,9 7 0 8 6 ,1 7 1 ,0 0 0 7 ,9 0 0 ,0 0 0 79 ,2 2 0 ,9 2 5 7 ,7 0 0 ,0 0 0 5 3 ,0 7 7 ,8 6 5 1,500,000 Total gold reserve........... 13 1,50 6,2 83 12 0,17 9.5 45 10 1,91 7,8 35 Gold in Gold Gold Legal tender notes, silver, etc............................................ Previous Month Year ago 8 0 0 ,2 8 9 8 0 8 ,2 8 9 3 7 1 ,0 0 3 13 2,3 0 6 ,5 7 2 120,98 7,8 34 10 1,9 1 7 ,8 3 8 AH other.............................. Bills bought in open market 1 5 3,08 4,7 50 14 ,557 ,43 6 5 ,8 3 2 ,6 3 2 1 4 6,47 2,1 64 15 ,889 ,64 8 2 0 ,5 8 5 ,9 3 3 4 4 ,2 7 2 ,5 7 8 2 1 ,0 5 8 ,7 7 4 Total bills on hand. .. 1 7 3 ,4 7 4 ,8 1 8 18 2,9 4 7 ,7 4 6 6 5 ,3 3 1 ,3 5 3 1,395,000 1,3 62,3 50 6 ,8 9 5 ,9 5 0 1 8 ,909 ,00 0 6 ,2 9 8 ,5 0 0 2 ,6 4 8 ,0 0 0 2 0 ,2 9 4 ,0 0 0 7 ,6 6 0 ,8 5 0 9 ,5 4 1 ,9 5 0 1 9 3,76 8,8 18 19 0,6 0 8 ,5 9 6 74 ,9 1 6 ,8 0 3 Uncollected i t e m s ................ 8 7 ,0 9 2 ,7 8 3 8 5 ,2 2 5 ,6 6 3 2 ,3 0 2 ,1 5 3 3 2 ,7 6 4 ,9 3 8 Deductions from gross de posits .................................... 8 7 ,0 9 2 ,7 8 3 8 5 ,2 2 5 ,6 6 3 3 5 ,067 ,09 1 All other resources............. 4 5 0 ,0 0 0 1,9 87,644 2 7 5 ,0 0 0 9 ,2 3 0 ,3 9 7 4 3 2 ,4 0 6 Total reso u rces........... 4 1 5 ,6 0 5 ,8 1 9 4 0 6 ,3 2 7 ,4 9 2 2 1 2 ,3 3 4 ,1 4 0 LIABILITIES Capital paid i n ..................... 7 ,5 6 2 ,3 0 0 7 ,4 5 9 ,1 0 0 5 ,8 8 9 ,2 5 0 2 ,0 6 0 ,9 4 2 3 2 ,8 0 8 ,2 7 2 8 ,4 4 0 ,4 1 2 9 5 ,3 0 5 ,6 2 6 6 6 ,646 ,67 1 7 0 ,2 7 5 ,1 2 4 4 5 ,3 5 6 ,9 3 5 7 7 ,0 6 1 ,8 2 9 2 7 ,3 4 8 ,1 3 8 Total r e s e r v e ............. Bills discounted— Members Secured by Gov. war ob- U. S. term U. S. term A R Government long s e c u r itie s................ Government short secu rities................. Total U. S. securities. •• i Total earning assets .... 4 3 ,5 0 0 Due from other Federal re- Due from Treasurer of U. S. 5 % fund Federal reserve Government deposits . . . . Due to members— reserve account ................................ Collection i t e m s .............. . . Due to other Federal re serve banks— n et........... Total gross deposits. Federal reserve bank notes in actual circulation.. . . Federal reserve notes in actual circulation All other liabilities . Total lia b ilities........... 19 ,632,983 — 1 6 4,01 3,2 39 1 6 8,07 3,3 14 9,5 91,6 61 5,0 32,921 2 3 2 ,2 2 7 ,4 2 5 3,21 1,194 2 2 2 ,9 0 4 ,8 6 5 2,857,2 91 9 2 ,5 4 2 ,9 1 0 1 ,0 51,5 99 4 1 5 ,6 0 5 ,8 1 9 4 0 6 ,3 2 7 ,4 9 2 2 1 2 ,3 3 4 ,1 4 0 1 12,850,381 Our inquiries, the last two years, as to the amount of “ Christ mas Savings Fund” payments by banking institutions in this dis trict resulted in such interesting returns that we continued our inquiries this year. Replies were received from 90 per cent of the banking institutions. Four hundred and two institutions reported payments to depositors amounting to $9,442,498, and depositors to the number of 326,636, or an average of $28.91 each. Comparative figures for 1918 and 1917 follow: Banks reporting No Percent of banks replying to “ Savings Clubs” Inquiries National banks State institutions Totals “ Savings Clubs” Number of Depositors Amount of Deposits .. 1 0 0% 400 234 135,514 $ 3 ,9 1 7 ,9 5 0 . 75% 162 168 191,122 5 ,5 2 5 ,5 4 8 562 402 3 2 6 ,6 3 6 $ 9 ,4 4 2 ,4 9 8 .... 1917 National banks . . 81 % 236 275 155,940 $ 4 ,6 4 2 ,7 7 4 . 61% 107 159 2 0 3 ,2 4 6 5 ,5 5 7 ,6 1 9 Totals . . . . . . 73% 343 434 3 5 9 ,1 8 6 $ 1 0 ,2 0 0 ,3 9 3 State institutions The money market in Philadelphia has remained firm at 6 per cent during the past month. As long as the Government is in the market for funds, making it necessary for banking institutions to borrow at the Reserve Bank in large amounts, no considerable fall ing off in the money rates is expected. Public participation in the speculative markets is at a low ebb, owing to money restrictions and uncertainty regarding the readjustment period. During the month of November the Federal Reserve Bank loaned to its members $359,648,000, of which the greater portion represented notes secured by Liberty Bonds or United States certifi cates of indebtedness. Earning assets averaged $189,486,000 daily during the month, which is $146,299,000 more than the figures for November, 1917. Loans for the first 26 days of December amounted to $355,693,000. With the usual reduction in commercial loans during January and February, it is believed that the banks will be able to considerably reduce their “ war paper” at the Reserve Bank. During the month of November 315 of the 657 member banks in the district were accommodated. BUSINESS IN DICATORS December 21, 1918 Percentage increase or decrease compared with Previous month Philadelphia banks: Loans . . . . . . . . . . . . . . Deposits — 1 + 2.6 $ 7 3 9 ,1 4 5 ,0 0 0 6 3 5 ,7 6 1 ,0 0 0 ................ .. 116% R a t i o ..................................... Year ago (A ctual) 12 0 % 4% % (A ctu al) + 4 424% 6% (A ctu al) 6% + — (A ctu al) 26 1 92% Federal Reserve Bank: Discounts and collateral loans— members . . . . 1 6 1 ,4 8 6 ,0 0 0 45% Cash r e s e r v e ............. .. 90-day discount rate. . . Commercial paper . . . . . . November, 1918 + 3 + 364 — 4 (A ctu al) 4 J/2 % (A ctu al) 524% Percentage increase or decrease compared with Previous month Year ago Bank clearings: In Philadelphia................ Elsewhere in district. . . $ 1 ,7 8 1 ,7 0 4 ,3 2 7 — 5.6 + 16 103,1 17,922 — 11. 8 + 3. 6 Total ................................ $ 1 ,8 8 4 ,8 2 2 ,2 4 9 — 5.2 + 15.5 5 6 7 ,2 6 0 — 33 — 67 1 ,0 05,5 00 — 8.4 — 6.7 Port of Philadelphia: Exports ................................ I m p o r ts .................... . Building permits — Philadelphia ................................ Post Office r e c e i p t s— Philadelphia ................ . . Commercial failures in dis trict (per Bradstreet’ s) . Commodity prices: Annalist, Dec. 21, 1918 Dun’s . . . Bradstreet’ s ....................... 26 (A ctu al) 19 2 9 1 .2 2 0 + -9 19.0376 + -6 (A ctu al) Compiled December 2 4 , 1 9 1 8 The purpose of this report is to provide member banks and the business community in general with a brief monthly review of prevailing business conditions in this particular Federal reserve district. 1 0 60 -F 8.2
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