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! THE BUSIN ESS REVIEW THIRD FEDERAL PHILADELPHIA If H| RESERVE DISTRICT JANUARY 193 6 By RICHARD L. AUSTIN, C lairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Industrial production and employ ment, which usually decline at this sea son, showed little change from October to November. Distribution of com modities to consumers increased more than seasonally. Production and employment. The Board’s seasonally adjusted index of industrial production advanced from 95 per cent of the 1923-1925 average in October to 97 per cent in November. Output of industries producing durable goods continued to increase substan tially in November, while activity in most other industries declined some what. Output of steel increased further during November to a higher rate than in any previous month this year and this high level was maintained during the first three weeks of December. Automobile production in November continued the sharp increase which began after the change to new models in September. Activity at silk mills and at woolen mills declined. Factory employment and payrolfs, which usually decline from the middle of October to the middle of November, showed little change for that period this year. Increases in employment were reported for the automobile, iron INDUSTRIAL PRODUCTION and steel, machinery, railroad car, and cotton textile industries and at railroad repair shops. There were larger than seasonal declines at sawmills, shoe fac tories, silk and rayon mills, and estab lishments producing wearing apparel. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, continued to in crease in November and the first half of December. There was a decline, largely seasonal, in residential build ing, while other types of construction showed an increase. Agriculture. Crop production in 1935, according to final estimates by the De partment of Agriculture, showed an increase of about 20 per cent in volume over the drought year of 1934, and the farm value of 64 crops amounted to $5,120,000,000 compared with $4,780, 000,000 last season. The cotton crop, which has been reduced in recent months by bad weather, is now esti mated at 10,734,000 bales compared with the exceptionally small output of 9,636,000 bales in 1934. Cash farm in come from marketings of crops and livestock and from government rental and benefit payments is estimated at about $6,800,000,000 for the calendar PER CENT 120 -- FACTORY EMPLOYMENT year 1935, as compared with $6,387, 000,000 last year. Distribution. Freight-car loadings de creased by less than the usual seasonal amount during November, reflecting principally a smaller decline in ship ments of miscellaneous freight than is customary at this time of year. Value of department store sales, on a daily average basis, increased from October to November. Commodity prices. The general level of wholesale commodity prices, after a decline during October, increased dur ing November and showed little change during the first two weeks of December. WHOLESALE PRICES Index of United States Bureau of Labor Statis tics. (1926 = 100.) By months 1929 to 1931; by weeks 1932 to date. Latest figure is for week ending December, 14. RAILROAD FREIGHT CAR LOADINGS \ Merchandise Index of industrial production, adjusted for seasonal variation. (1923 1925 average = 100.) Index of factory employment, adjusted for seasonal variation. (1923-1925 average = 100.) Indexes of daily average number of cars loaded, adjusted for seasonal variation. (1923-1925 av erage = 100.) Page One Bank credit. Excess reserves of mem ber banks, which had increased to a new high level of $3,310,000,000 on December 11, largely as the result of continued gold imports, declined con siderably during the week ending December 18, as a consequence of seasonal demands for currency and a large increase in Treasury balances with the Federal Reserve banks, in of $200,000,000 in United States Gov ernment deposits. Adjusted demand deposits showed a further growth of $270,000,000 in the three weeks ending December 11 and declined by $250, 000,000 in the following week, as a re sult of withdrawals for holiday cur rency demands, income tax payments, and the purchase of new government securities. connection with mid-December fiscal operations. Changes in condition of reporting banks in 101 leading cities during the four weeks ending December 18 re flected principally the influence of new government financing. These banks showed increases of $310,000,000 in holdings of United States Government securities, of $110,000,000 in loans to brokers and dealers in securities, and Business and Banking Conditions in the Philadelphia Federal Reserve District November was relatively small. Pre liminary reports from manufacturing establishments for December indicate some slight increases which appear to be somewhat more favorable than usual. Manufacturing. The market for prod ucts manufactured in this district has slackened seasonally as it usually does toward the end of the year. In com parison with a year ago, sales have been appreciably larger and the volume of unfilled orders about the middle of December also exceeded that at the same time last year. Shipments of di verse manufactures from this section to other parts of the country have in creased materially since August and by the beginning of December reached the largest volume, with two exceptions, since early 1932. Prices of manufactures at factory have shown little change during the month but continued slightly above a year ago. The price index of the Bureau of Labor Statistics at nearly 79 per cent of the 1926 average for the week ended December 21 was vir tually unchanged but was slightly higher than last year, 2 per cent Business conditions in the Philadel of this year with last. Barring sea phia Federal Reserve District generally sonal and irregular fluctuations, the have reflected a fairly stable rate of trend of industrial production in this activity in channels of production and district as a whole has been upward distribution of goods. Retail trade since the early autumn last year. The sales, while failing somewhat to show value of building contracts awarded the usual seasonal rate of gain during for all types of construction increased November, were larger than a year somewhat from October to November, ago. Preliminary reports indicate that reflecting mainly expansion in public holiday trade sales in the few weeks works. During the first eleven months preceding Christmas were somewhat this year as compared with last, the greater than in the same period last sharpest gain occurred in the case of year. Sales at wholesale establish family houses and miscellaneous con ments declined in the month but were struction, while contracts let for pub larger than last year. Deliveries of lic works and utilities, and educational general merchandise by rail and motor buildings registered the most pro freight appear to have been more ac nounced decreases. Income of farm tive seasonally and as compared -with ers in this section has continued to be appreciably larger than in recent years, last year. . Industrial production has continued sales of livestock products being the to be about 77 per cent of the 1923-25 principal source. Industrial employment and payrolls average as compared with 69 a year ago, 68 two years ago and 62 in No as measured by twelve branches of vember 1932. For the year to date trade and industry in Pennsylvania the rate of output as measured by pro have been well maintained and recent ductive activity at factories and mines changes do not seem to be larger than averaged 8 per cent higher than that is to be normally expected. From the in the same period last year. Indus seasonal low of midsummer the volume trial consumption of electric power of employment and wage payments rose shows a similarly favorable comparison sharply to October and the decline in SALES OF ELECTRIC POWER INDUSTRIAL AND TRADE ACTIVITY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT 192 -2SAVC.5I00 PERCENT PERCENT 200 RETAIL TRADE SALES TOTAL VV-\ OUTPUT OF FACTORIES AND MINES -v 175 A N 150 M. •v?V*\ 125 - VALUE OF —-?*— BUILDING CONTRACTS 193 I Page Two 1932 «/. 1933 1934 1935 r- V IOO 75 A J /vv* * * V'-TC V INDUSTRIES ADJUSTED FOR SEASONAL VAR ATION 1931 1932 1933 1934 1935 1936 higher than two years ago and 14 per cent higher than in the same week of 1932. The number of factory wage earners, the amount of wages paid and the vol ume of work done in this section have declined seasonally, following the Oc tober peak which was the highest shown for any month since 1931. In Pennsylvania, the drop in employment was less than one per cent, and in wage payments and employee-hours actually worked about 3 per cent from the mid dle of October to the middle of Novem ber. A slight increase in these items occurred in December, according to preliminary reports. The decrease in November was of about seasonal pro portions, so that for the year as a whole factory employment and income from wages have registered marked gains over the same period of recent years. Recessions in employment and pay rolls since October were particularly noticeable in those industries which produce consumers’ goods; in the case of the textile group as a whole de creases were shown despite the fact that some increases are to be normally expected. Such durable goods indus tries as iron and steel products, nonferrous metal products, and transporta tion equipment registered slight gains in employment and more favorable changes in payrolls than those that usually occur from October to Novem ber, thus indicating that activity in the heavy goods industries continued well sustained. The employment index for Pennsyl vania factories in November was 79.3 relative to the 1923-25 average, or about 7 per cent higher than a year ago. The payroll index was 68.3, or 20.5 per cent higher than in November 1934. Estimates made from the cur rent indexes and the census data indi cate that all Pennsylvania factories in November employed over 850,000 wage earners and disbursed in wages almost $17,278,000 a week. The number of hours actually worked by wage earners in about 90 per cent of the reporting factories continued to be 26 per cent larger than a year ago. Output of factory products in this district on the whole was well sus tained during November, so that pro duction in the past three months con tinued at the highest rate since early 1931. This bank’s index number of manufacturing activity, which is ad justed for seasonal changes and for the number of working days, has been around 76 per cent of the 1923-25 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, Sep, Oct. Nov. 1934 1935 1935 1935 Nov. 1935 from 1935 from 11 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!................................... Sales to industries:}:..................... Employment and wages—Pa. 77 76 62 77 75 57 88 r 65 88 r 51 69 92 28 69 66 48 80 51 74 47 76 88 69 r 90 58 67 86 92 25 34 100 110 104 105 127r 118 76 83 82 63 63 49 64 65 48 56 49 61 374 377 390 188 196 181 186 128 145 77p + 0 76p - 0 63p + 2 86p — 2 68 - 1 84p - 6 62 +6 72p + 8 86 - 7 36 +4 lllp + 7 132p + 12 81 — 1 49p — 0 48p — 0 61p — 0 406 +4 198 197 192 194 144 145 + + 8 +32 +13 +31 — 5 + 0 +44 +10 +26 + — —25 + 9 + 9 + 5 + 7 +13 1 100 - 6 - 0 + 5 + 3 + 6 + 3 — 11 -12 + 1 +10 + + 2 2 + 7 52 65 77 90 r 45 48 76 72 102 106 25 30 101 109 100 138 77 82 65 63 65 65 61 50 363 377 71 94 56 69 113 36 106 125 83 62 62 65 390 195 192 187 184 131 153 204 205 192 200 140 148 8 + 4* +11* +10* — 13 +36 — 1 —42 74 57 55 36 14 31 115 +16 10 — 9 - 6 +29 8 +55 +19 -22 -16 + 2 + 2 46 +25* - 2* 59 + 8* -34* —22* + 6* 137 — 50 -32 — 5 1003 69p — 1 64 p — 2 75p — 3 66 67p + 2 — 2 106 105 66 143 +116 — 8* - 0* +13 + 3 + 2 + 3 1 Number................................................ Amount of liabilities......................... + 5 74 72 72 67 80 91 4 67 66 + 5 + 2 106 89 45 68 4-123 +28 + 3* + 7* 105 106 + 10* + 8* 108 98 + 16 54 63 + 3 +19 + 4 53 65 - 3 - 1 63 57 — Business liquidations 34 23 34 64 14 4 24 54 17 781 + 3 + + 78 71 +16 +23 + 3 79p 78p 78 r 77 8 +11 +10 68 88p 59 72p 103 36 lllp 126p 82 52p 50p 67p 394 112 109 139r 131 + 66 111 64 + + 10 80 79 70 r 68 71r 69 +61 -10 + 0 -22 70 80 64 81 63 mos. 1934 + 1* - 0* 108 108 +10* + 6* 118 128 2* +11 — 3 Distribution 61 62 71 65 Nov. Sen, Oct. Nov. 1934 1935 1935 1935 78 65 65 + 7* +20* +26* - 6* Contracts awarded!—total........... 36 39 Residential!.................................. 13 21 Non-residentialf.......................... 29 26 Public works and utilities!.... 103 103 Permits for building—17 cities... 10 10 Mortgages recorded—Philadelphia. 8 10 Real estate deeds—-Philadelphia... 43 44 Sheriff deeds (1930= 100)........... Other deeds (1930 =100)........... Writs for Sheriff sales—Phila......... 895 673 1212 610 6 — 22 - 1* — 3* — 3* Building and real estate 6 36 39 21 22 33 28 115 9 86 11 5 54 10 47 74 161 107 606 683 68 79 73 88 69 97 54 116 119 65 84p 74p 85p 69p 111 100 107 119 62 66 63 65 61 -13* + 5* +18* -31* -44* -37* 64 77 81 81 Prices—United States Wholesale (1926 = 100)................. Farm products................................ Foods................................................ Other commodities........................ Retail food (1913 = 100)............... Philadelphia.................................... Scranton........................................... 69 64 74 49 +27 68 77 79 87 + - Check payments................................. Rate of collections (actual) Retail trade..................................... ^ Wholesale trade.............................. 61 60 + 5 Payment of accounts (In millions of dollars) +12 + 15 +33 - 0 + 1 Factory—Wage earners.................. Payrolls.......................................... Man-hours (1927-28 = 100).... General (1932=100) Employment................................. ^ Payrolls.......................................... Retail trade —sales...................... stocks.................. Wholesale trade—sales..................... # , stocks.................. Life insurance sales........................... New passenger auto, registrations . Hotels—Occupancy (1934 = 100) Income, total (1934 = 100) Freight car loadings—total............. Merchandise and miscellaneous. Coal................................................... Not adjusted Per cent change +10 29 67 26 67 29 73 31 8 6 +48 - 1 + 0* + 5* + 7* 76 81 - 1* + 9* +21* 71 79 + 0* +13* +19* 75 86 + 1* + 1* - 1* 78 78 + 1* + 9* +11* 115 124 + 2* +10* + 7* 119 127 + 1* + 9* +- 7* 117 125 Nov. 1934 Aug. 1935 64 34 66 80 81 78 77 85 85 78 79 124 126 128 131 126 127 % change from Sept. 1935 Oct. 1935 Nov. 1935 Month ago Year ago (a) 185 269 70.1 +1 +3 -3 + 9 +36 + 6 $ 402 698 1.306 13.7 -0 +i —1 -3 - 7 +14 +n 0 Banking and Credit Federal Reserve Bank Bills discounted.............................. Other bills and securities............. Member bank reserves................. Reserve ratio (per cent).............. Reporting member banks Loans to customers....................... Other loans and investments . . . Total (gross) deposits................... Bankers’ acceptances outstanding. # i 169 198 66.2 $ 434 613 1,173 13.7 $ i 181 232 67.1 $ 414 668 1,252 12.9 S 1 181 242 69.9 $ 408 681 1,283 13.4 * Computed from data unadjusted for seasonal variation, t 3-month moving daily average centered at 3rd month, (a) Less than $500,000. $ (a) 184 262 72.1 S 403 694 1,319 14.1 $ p—Preliminary. r—Revised, t Not included in production index. Page Three OUTPUT OF METAL AND TEXTILE PRODUCTS OUTPUT OF SHOES AND HOSIERY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT SHOES TEXTILES METALS HOSIERY 1930 1931 1932 1933 1935 1930 average, rising almost steadily since Coal and other fuels. Output of an the low point reached in June. A' year thracite declined in November by about ago this index was 66, two years ago the usual seasonal amount, but was nearly 25 per cent smaller than last 65, and in November 1932 it was 60. The index number of the group com year. Since midsummer, production prising industries producing durable has been very erratic as contrasted goods in November was 63 as com with an upward trend a year ago. Thus pared with 62 in October, 57 in Sep far this year total output has amounted tember and 48 a year ago. This index to 46,375,000 net tons compared with is adjusted for seasonal variation and 52.680.000 net tons in the first eleven is related to the base average prevail months of 1934 and an average of ing in 1923-25. In the first eleven 44.900.000 tons in 1932 and 1933. months of this year the rate of produc Shipments also decreased in Novem tion in the durable goods industry aver ber and were 18 per cent smaller than aged 11 per cent higher than in the in the same month last year. same period last year. A similar index covering the group Per cent change from (Output and which comprises consumers’ goods was Nov. shipment figures are 1935 Month Year daily averages) 86 in November as compared with 88 ago ago a month ago and 80 a year ago. The Anthracite decline during the month reflects -24 -20 Production............. tons 131,700 -18 Shipments..............tons 133,418 -13 largely slackened activity in such tex 2,239t + 5 -16 Stocks........... 1000 tons + 1 Prices___ (1926=100) 83.0 + 1 tiles as silk and wool manufactures, -22 Employment.......... No. 80,175 -21 carpets and rugs and to some extent Bituminous + 9 + 2 Production.............tons 66.6 hosiery. Most food industries and Shipments.. . .No. cars 25,660 + 1 +10 + 2 + 1 Prices___ (1926 = 100) 98.5 those producing shoes and leather - 4 Employment.......... No. 124,459 + 2 showed improvement from the Oc Coke +32 4- l Prod... (1923-25 = 100) 92.0 tober level. For the year to date the Prices. . . .(1926 = 100) 88.9 + 0 + 4 Gas and fuel oil consumers’ goods industry in the ag 93.9* + 9 -11 Prod. (1923-25 = 100) +15 Prices___ (1926=100) 63.8 + 2 gregate showed an increase of 10 per Sources: Bureau of Mines and Bureau of Labor cent over the same period last year, Statistics. and the general trend since the fall of * Estimated. t October. 1934 has been upward, despite some Bituminous coal production, which irregular fluctuations. Output of electric power showed usually reaches its peak for the year little change during the month. Total in November, increased in that month sales of electricity for all purposes by a somewhat smaller percentage than were slightly larger than usual for was to be expected, but was in larger November and for the year to date the volume than a year ago. In the first increase over last year approximated eleven months this year output in 2 per cent. Industrial consumption Pennsylvania totaled approximately computed on the basis of working days, 82,751,000 tons, a gain of about one also increased somewhat in the month per cent over the same period of 1934. and was 7 per cent larger in the first Shipments increased further during November, continuing the upward eleven months this year than last. Page Four 1932 1933 1934 1935 trend since midsummer, and exceeded those of a year ago by 10 per cent. Output of by-product coke continued to expand for the fourth consecutive month and for the year to date was 8 per cent larger than a year ago. Pro duction of gas and fuel oils also in creased in November, after falling off rather sharply the month before, but in the January to November period was about 7 per cent smaller this year than last. Building. Awards of building con tracts in this district totaled $9,783,000 in November, a gain of 8 per cent from the month before and an increase of 28 per cent over a year ago. This rise during the month was contrary to seasonal tendency and reflected in creases in awards for public works and utilities and some non-residential build ings which more than offset an unusual decline in the value of contracts let for dwellings. In the first eleven months this year the value of all contract awards was 13 per cent smaller than a year ago, owing largely to a sharp de crease in the classification designated as public works and utilities. In recent months the value of resi dential awards has shown considerable expansion over last year. In the first eleven months of 1935 residential con tracts were 36 per cent larger than a year ago and constituted 30 per cent of the contracts awarded for all types of construction as compared with 19 per cent in the same period of 1934. Improvement in this class of construc tion has been due entirely to the in creasing value of awards for one and two-family dwellings, since contracts let for apartments and hotels have been slightly smaller thus far this year than last. The accompanying table gives further details. FREIGHT CAR LOADINGS COST OF LIVING ALLEGHENY DISTRICT PHILADELPHIA PERCENT PERCENT MERCHANDISE AND MISCELLANEOUS (649% or total) COAL 1(23.5% or total) CLOTHING TOTAL TOTAL fsource; Bureau of Labor Statistic 1930 Building contracts Philadelphia Federal Reserve District Residential......................... Apts, and hotels........... Family houses.... Non-residential................ 1932 1933 Per cent Nov. change 1935 (000’s 1935 omit [From month from ted) 11 mos. ago 1934 2,154 323 1,831 2,683 758 419 547 959 - 33 + 130 - 40 + 7 - 2 - 30 + 56 + 23 +36 - 3 +45 — 1 + 6 — 8 -51 +48 Total buildings......... 4,837 — 15 Public works and utilities 4,946 + 48 +13 -42 Educational................... 9,783 + 8 -13 Source: F. W. Dodge Corporation. Following an upward trend since early spring, building operations on contracts previously awarded showed a decline in November, as indicated by fairly large decreases in the number of workers employed and in their earn ings. Activity in street and highway construction and miscellaneous con tracting work also was reduced in this period, reflecting partly seasonal in fluences. Agriculture. Early reports indicate that farm income in this district will be larger this year than last. This is particularly true in Pennsylvania, where preliminary estimates by the De partment of Agriculture indicate that receipts from the sale of farm products totaled $155,587,000 in the first nine months this year as compared with $137,860,000 in the same period of 1934. Sales of livestock products in this district have been considerably larger this year than in the past three years, reflecting higher prices and to some extent larger volume, particu larly in the case of eggs and dressed poultry. Yields this year of nearly all im portant field crops are expected to show fairly large increases over those 1934 1935 1926 of a year ago. Production of corn, wheat and hay appears to have ex ceeded the average of the five years, 1928-32; that of oats and white pota toes may be slightly below this average, while the yield of tobacco has been considerably smaller, although some what larger than the light crop har vested in 1934. Wholesale prices of farm products in the country as a whole declined in November but advanced appreciably in early December. The Bureau of Labor Statistics’ index for all agri cultural commodities stood at 77.3 per cent of the 1926 average for the week ended December 21, compared with 78.2 four weeks earlier and 71.2 a year ago. Distribution, trade and service. Total freight car loadings in this section were 2 per cent larger than usual in November, thus continuing the upward trend since midsummer. Deliveries of merchandise and miscellaneous com modities, coke and ore were main tained above their customary seasonal levels, offset in part by unusually large declines in loadings of coal and forest products and the failure of grain ship ments to increase as much as they usually do in November. Thus far this year, total loadings have been about 3 per cent larger than a year ago. The volume of rail freight consisting chiefly of manufactures originating in the Philadelphia industrial area in creased in November, contrary to sea sonal tendency, and was the largest for that month since 1931. Business at wholesale, as measured by the dollar sales of eight important lines combined, declined about 3 per cent more than usual in November, owing largely to the fact that sales of shoes, dry goods, groceries and jewelry failed to maintain their customary sea sonal levels for that month. In com parison with a year ago, aggregate sales showed an increase of 6 per cent and were 5 per cent larger in the first eleven months this year than last. Early reports for December indicate some improvement in demand for elec trical supplies and jewelry. Retail trade sales of department, ap parel, shoe and credit stores increased by about 6 per cent from October to November, which was slightly less than the usual rate of gain to be ex pected in this period. Total dollar sales in November showed ail increase of 13 per cent over a year ago and for the year to date were 3 per cent larger than in the first eleven months of 1934. Early returns for the first three weeks of December indicate that sales of gen eral merchandise increased seasonally and as compared with last year. Stocks of goods at wholesale estab lishments showed virtually no change from October to November, instead of declining slightly as they usually do, while at retail inventories of merchan dise increased by a smaller percentage than was to be expected. Compared with a year ago, stocks at retail were 3 per cent larger and at wholesale es tablishments 4 per cent greater. The rate of stock turnover at wholesale was 3 per cent and in retail lines 6 per cent more rapid in the first eleven months this year than last. Following a downward trend for three months, sales of new passenger automobiles, as measured by registra tions in this district, increased very sharply in November, reflecting in part the introduction of new models at an earlier date than in other years. At 142.9 per cent of the 1923-25 average, our seasonally adjusted index in NoPage Five vember compared with the low point for the year of 66.1 a month earlier and 64.0 a year ago. The number of units sold in the first eleven months this year showed an increase of 28 per cent over 1934 and exceeded that of any like period since 1930. Activity of commercial hotels, ex cluding resort hotels, declined season ally during November, following a steady rise for three months. Nov., per cent change from Hotel business Philadelphia Federal Reserve District Month Year ago ago Room occupancy................ Per cent of capacity used: Nov. 1935........... 44.9 Oct. 1935........... 53.3 Nov. 1934........... 49.3 Income from: Guest rooms.................... Food.................................. Other sources.................. Total revenue............. 1935 from 11 mos. 1934 + 0 + 3 +10 — 8 + 7 — 8 + i +17 + 3 +13 +19 + 6 + 9 +12 - 0 +10 + 8 Member bank reserve balances decreased 3J4 mil lions in the four weeks ending Decem ber 18 to less than 270 millions. Al though this figure was substantially below the record high of 283 millions attained on November 4, it compared with 211 millions a year ago. Reserves continue much in excess of legal re quirements. Treasury disbursements in the four weeks were about 9 millions smaller than local receipts. Disbursements in cluded payments for direct relief and for an increasing amount of work relief checks cashed, but Treasury balances were augmented by income tax collec tions, by cash payments for new se curity issues, and by withdrawals from depositary banks. Currency demand, showing a seasonal rise of over IS mil lions, also tended to reduce the reserve deposits of member banks. These fac tors were only partly compensated for by a favorable balance of commercial payments with other districts of ap- Banking conditions. Changes in— Federal Reserve Bank of Philadelphia (Dollar figures in millions) Bills discounted.... Bills bought.............. Industrial advances. United States secu rities ................... Total bills and se curities........... Fed. res. note cir culation ............. Member bank re serve deposits. . U. S. Treasurer —• general account. Foreign bank de posits . ................ Other deposits.......... Total reserves........... Reserve ratio............ proximately 1millions and the re lease of nearly 8 millions to the mar ket through a decline in miscellaneous deposits at the reserve bank. Outstanding credit of the reserve bank has shown little change during the four weeks other than a decline of nearly a million in reserve bank float, which measures the extent to which credit has been given to banks for checks in process of collection before payment has been received. There was a slight decrease in outstanding indus trial advances made to provide estab lished businesses with working cap ital, as repayments of about two hun dred thousand dollars were in excess of amounts newly advanced. Bills dis counted for members totaled slightly less than half a million on December 18 and the average so far this year has been well under one million. Figures of the reporting member banks bear the imprint of Government financing. Though allotted a sub stantial amount of the new issues of December 16, the bulk of which was paid for by setting up deposit balances to the credit of the Treasury, about one-third of the allotment was for the account of customers. Holdings of di rect Government obligations increased 13 millions in the four week period, which was less than the amount of the new issues which the banks took for their own account; this signifies that some securities, whether of the new or older issues, were sold or that secu rities were redeemed without exchange. Despite quarterly income tax pay ments and seasonal currency demand, adjusted demand deposits increased 10 millions; this rise, together with that of 22 millions in Government deposits, more than exceeded declines of 7 mil lions in time funds and 6 millions in interbank balances, so that there was an expansion of 19 millions in the ag gregate of deposits at reporting banks to 1,332 millions, a new high point for the year. Their balances at the re serve bank and at correspondents Four Assets Loans to brokers and dealers: In New York City........... $ Outside New York City . Loans on securities to others (except banks) .. . Acceptances and commercial paper bought............. Loans on real estate............. Total loans......................... $ U. S. Government securities....................................... Obligations fully guaranteed by U. S. Gov’t......... 177.1 0 + 10.0 184.9 + 0.1 + 13.7 273.7 +10.9 — 3.5 + 58.1 15.5 +12.4 + + 0.2 - 7.8 +13.2 + 0.8% + 1.3 + 8.1 + 89.9 + 4.1% Page Six One year +S 3 -$ 10 1 + 3 — 19 — 9 15 148 21 — 68 3 169 + — 1 4 _ 1 1 4 433 +$ 4 -$ 37 300 + 13 + 11 95 288 + + + 60 24 + + — + 52 1 7 7 1 Total loans and invest+$18 Reserve with F. R. Bank .. Cash in vault......................... Due from domestic banks. . Liabilities Demand deposits—adjusted*................................ Time deposits........................ U. S. Government deposits . Interbank deposits............... Other liabilities..................... 193 17 156 95 + 2 743 + 10 + 155 251 - 7 — 33 46 + 22 — 31 292 - 6 + 31 + 21 224 i — a * Less cash items on hand or in process of col lection. scarcely changed, but there was a small increase in vault cash. As indicated heretofore, holdings of direct obliga tions of the Federal Government in creased 13 millions; there also was a rise of 6 millions in loans on securities to brokers, but changes in other types of outstanding credit were minor. “Other loans”, as given in the ac companying table, are thought gener ally to be largely for the purpose of financing commerce and industry. No change of any magnitude has taken place in these loans since September. The total of 169 millions on December 18 was within about 2 per cent of that a year ago. Outstanding acceptances of banks in this district, despite a decline during November from $14,100,000 to $13, 700,000, still are in slightly greater amount than a year ago. Nationally the total of 387 millions at the end of November was far below that of 561 millions a year earlier. Changes in weeks ending— Philadelphia Federal Reserve District (In millions of dollars) 2.2 Changes in four weeks Nov. 27 Dec. 4 Dec. 11 Dec. 18 — 1.6 -15.7 + 2.3 +1.6 +7.6 -2.4 -1.2 +6.8 +3.8 + 0.4 +15.5 — 12.9 - 0.8 +14.2 - 9.2 -15.0 +6.8 +9.4 + 3.0 + 4.2 Member bank reserve deposits............................................. “ Other deposits” at reserve bank....................................... Unexpended capital funds of reserve bank....................... + 8.5 -19.9 — 3.7 + 0.1 +0.2 +7.8 -1.3 +0.1 +3.5 +6.5 -0.6 +0.0 + + — + 3.1 2.1 2.2 0.0 +15.3 - 3.5 - 7.8 + 0.2 Total....................................................................................... -15.0 +6.8 +9.4 + 3.0 + 4.2 Sources of funds: # _ Reserve bank credit extended in district........................... Commercial transfers (chiefly interdistrict)..................... Treasury operations................................................................ + 29.3 269.6 3.2 10.2 407.5 71.2% Four weeks MEMBER BANK RESERVES AND RELATED FACTORS - $0.5 $0.4 0.5 6.9 Changes in— Dec. 18. 1935 Reporting member banks (000,000’s omitted) Uses of funds: Employment and Payrolls in Pennsylvania CURRENCY DEMAND MILLIONS PHILADELPHIA FEDERAL RESERVE DISTRICT (All figures are rounded from original data) Manufacturing Indexes 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 1935 ed proportionately.) 1935 index Nov. Oct. index Nov. Oct. 1934 1935 1934 1935 All manufacturing.... Iron, steel and products . Non-ferrous metal prods. Transportation equip. . , Textiles and clothing. . . . Textiles........................... Clothing.......................... 1932 1933 1934 3 2 1 3 4 3 6 +26 +40 +39 +20 +16 +15 +28 +39 + 1 +29 — 11 + 4 + 0 +10 — 8 + 8 — 0 + 8 + 0 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 .. 1935 LOANS TO CUSTOMERS REPORTING MEMBER BANKS Nov. Oct. 1934 1935 PHILA. FED. RES. DISTRICT 79 66 106 57 102 98 114 Nov. 1935— per cent change from + 7 + 11 +17 + 9 + 6 + « + 6 —1 +0 +i +0 —2 —1 —2 68 62 102 43 90 89 *91 79 +14 60 +13 87 - 2 94 + 8 93 + 3 87 + 4 —0 -4 +1 —2 +0 +1 67 47 75 78 85 83 +36 +29 +10 + 8 + 7 + 5 — 3 — 2 — 2 — 2 — 3 — 2 — 7 - 3 — 2 — 11 — 0 — 8 — 2 — 2 70 — 1 75 + 6 57 +15 —2 +i +6 58 — 22 — 11 — 5 63 +15 — 4 +24 61 +43 + 3 +47 — 14 — 3 + 4 * Figures from 2252 plants. +20 +39 +31 +20 + 11 + 10 +17 — — + — — f Figures from 2036 plants. MILLIONS SECURED BY - STOCKS AND BONDS General Index Numbers Covering twelve branches of trade and industry (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) ALL OTHER Employment Nov. 1935 index General index (weighted)... Manufacturing............................. 1933 1934 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................... 1935 109 125 75 117 60 98 199 90 114 108 103 95 94 Payrolls Per cent change from Nov. 1934 Oct. 1935 + 1 + 7 -22 - 4 — 19 - 9 +23 +1 + 2 + 3 -r 4 + i - 0 Per cent change from Nov. 1935 index — 2 — 1 —21 + 2 -12 - 2 - 1 + 1 + 0 + 1 + 0 + o - 4 Nov. 1934 +10 +20 — 44 131 166 53 166 61 135 180 93 111 102 106 96 97 Oct. 1935 — 6 — 3 — 49 — 4 — 19 — 7 + 2 + 1 — 0 — 0 + 1 — 1 -11 — 3 +13 +23 + 3 + 2 + 4 + 2 + 2 Percentage change—November 1935 from November 1934 City areas* Manufacturing Employ ment Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster............. Philadelphia........ Reading................. Scranton................ Trenton................. Wilkes-Barre. . . Williamsport........ Wilmington.......... Y ork....................... Wage payments + 8 4- 5 +25 +26 +22 +48 +34 + s + 7 +18 + 7 +10 - 6 + 2 + 3 +10 + 3 +15 +n +16 +21 + 2 +16 +11 +24 Building permits (value) Debits — 12 — 19 +303 — 64 +402 + 81 — 95 + 40 +348 + 2 + 51 — 14 + 88 +12 +24 +28 +23 +27 +21 + 4 +12 +17 +28 +27 +24 trade sales +10 +29 +13 +15 + 17 +12 + 9 + o +12 + 10 '"+Y" INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUFACTURING AND NON-MANUFACTURING INDUSTRIES AND 120 — — + — + — — 0 1 3 1 1 0 2 1 i 3 2 3 4 - 3 - 3 -12 - 8 — 8 — 1 - 5 - 1 — 2 - 8 - 3 — 1 -10 + — — — + — 49 67 7 52 24 35 82 27 — 33 - 39 — 54 +276 — 5 - 4 — 9 — 1 — 8 - 8 — 2 — 11 — 14 — 5 + 3 - 9 - 2 * Area not restricted to the corporate limits of cities given here. i/1 PAYROLLS f* / • » * November 1935 from October 1935 Allentown.............. Altoona.................. Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Reading................. Scranton ................ Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... Y ork....................... + 4 + 14 +15 100 i* it X . + 9 + 5 +21 +17 +19 +15 +u SERVICES PERCENT /!'* \-.yi / * \ *. . /**' V *»’. « V —T/ V X- s \------------------ EMPLOYMENT V*# %\J 60 1932 1933 1934 1935 Page Seven WHOLESALE Index numbers of individual lines of trade and manufacture TRADE PHILADELPHIA FEDERAL RESERVE DIST RICT ADJUSTED FOR SEASON* L VARIATION TOTAL -SALES PERCENT 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. BOOTS AND SHOES 75 A*rV, Per cent change Unadjusted indexes reflect merely the tfov. 1935 from actual change which may or may not Nov. Sep. Oct. Nov. 1934 1935 1936 1935 be typical. Month Year ago ago 50 1935 from 11 mos. 1934 Nov. Sep. Oct. Nov. 1934 1935 1935 1935 SALES ^ DRUGS Retail trade 61 80 60 74 56 72 78 119 63 87 60 74 Total of all stores. . . Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... Stocks of goods Total of all stores. Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... 70 65 66 93 74 70 69p 66p 64p 87 p 72 70p 1 2 4 7 3 0 +13 +11 + 14 + 11 +14 +17 64 54 60 97 57 77 66 55 66 86 61 80 64p — 2 54p 65p - 1 88p 61 +1 76p 3 3 6 4 2 8 Rate of stock turnover 11 months (actual, not indexes) + 74 72 63 94 67 76 72 79 84p 66 74 80p 60 69 72p 103 105 104p 81 74 76 70 85 89p 72 64 67 107 66 80 + + + + + + + 3 - 0 +11 + 0 — 2 + 7 62 54 59 88 62 71 + — - 67 73 74p 56 62 63p 65 70 75p 104 109 108p 60 65 65 79 85 86 6* \ STOCKS . v V 3.43 DRY GOCDS 75 * LECTRJCAL SUPPLIES 78 75p - 3 71 81 — 5 36 44 48 45 + o 86 92 87 87 37 — 12 36 38 41 61 64 64 67p + 3 103 123 112 106p — 5 + 2 47 51 54 55 53 52 - 2 40 51 + 0 62 74 73 73 + 6 + 5 80 +25 + 8 38 89 + 1 + 1 + 1 — 4 47 +10 + 4 79 + 2 + 5 113 +17 + 12 53 +27 + IS 58 +18 + 9 65 91 88 85p 64 59 48 95 85 90 55 47 51 76 82 87p 136 122 115p 54 62 62 63 70 74 75 78 77 Stocks of goods Total of all lines----Boots and shoes. . . Drugs...................... Dry goods....... Electrical supplies. Groceries................ Hardware............... Jewelry.................... Paper....................... 65 63 66 67p + 2 + 1 20 27 28 28 119 108 112 116 + 1 45 40 41 41 + 3 76 87 89 92 71 65 69 68p 59 69 69 68 - i +12 57 54 62 69 55 56 58 59 + 2 + 4 +41 — 3 - 9 +22 — 4 +14 +21 + 6 67 18 120 44 82 77 A 66 69 69p 28 27 26 111 116 117 44 43 40 93 100 100 65 74 74p 68 65 63 59 65 70 58 59 59 + V ieJ. ..\v 50 GROCERI ES SALES ....... —. 3* STOCKS 5.24 5.11 HARDWARE 20 45 43 39 72 13 59 18 123 95 49 35 58 106 121 . 29 29 . 20 . . • . . . . . 33 61 53 53 80 9 58 20 142 97 69 45 102 125 121 30 41 20 37 64 50 55 86 r 14 68 24 156 103 r 75 46 103 118 129 r 38 46 26 r 35 65 56 46 81 17 80 26 153 92 71 48 87 116 135 44 43 27 96 68 70 85 96 49 55 54 48 41 47p 92 85 85 91 58 61 62 61 SO 87 86 85 110 137 119 123 99 116r 116 141p 76 69 77 82 64 72 71r 72 139 153 137 149p 93 96p 91 ► Computed from data unadjusted for seasonal variation. 58 55 A, , !\ STOCKS V’ Rate of stock turnover 11 months (actual, not indexes) Page Eight SALES’^-" 125 Total of all lines......... Boots and shoes. . . Drugs........................ Dry goods....... Electrical supplies. Groceries.................. Hardware................. Jewelry.................... Paper....................... Pig iron......................................... Steel............................................... Iron castings............................... Steel castings.............................. Electrical apparatus.................. Motor vehicles.......... ....... Automobile parts and bodies. Locomotives and cars............... Shipbuilding................................ Silk manufactures...................... Woolen and worsteds............... Cotton products........................ Carpets and rugs....................... Hosiery......................................... Underwear................................... Cement......................................... Brick............................................. Lumber and products.............. Bread and bakery products... Slaughtering, meat packing... Sugar refining............_................ Canning and preserving.......... Cigars............................................ Paper and wood pulp............... Printing and publishing........... Shoes............................................. Leather, goat and kid.............. Explosives....................... Paints and varnishes. . Petroleum products. . . Coke, by-product. . .. W'V'" 3.64 Wholesale trade Output of manufactures J . ./•■ ... y - 6 + 2 +11 -16 — 5 +21 + 18 + 5 - 2 -11 — 6 + 5 — 15 - 2 + 4 +17 - 5 + 2 + 1* +21 +17 +15 - 7 - 0 - 1 + 4 +21 + 7 + 1 + 0 + 3 +79 +47 +29 +17 +14 +29 +36 +42 +25 - 3 +46 +37 +50 + 9 +11 +54 +52 +30 + 2* -12 -32 -13 + 0 + 6 + 6 +12 +41 + 8 + 12 + 7 +32 + 2 + 13 + 10 — 4 + 23 + 5 + 4 — 4 + 5 + 4 + 80 + 13 +112 + 15 + 19 — 4 + 15 + 7 — 0* — 21 — 19 — 6 + 0 + 6 + 2 + 5 + 6 — 4 + 6 + 3 + 8 20 43 44 36 76 11 54 17 123 96 53 36 66 121 123 28 28 21 87 106 62 59 102 58 81 104 96 76 66 140 70 p—Preliminary, 31 37 58 64 54 53 48 52 88 94 r 7 13 55 65 19 23 135 150 97 106 r 76 83 42 47 112 117 125 130 121 141 r 35 42 41 46 21 27 r 89 88 70 74 42 47 60 53 106 113 61 63 86 87 157 129 121r 121 69 78 68 76 155 138 87 91 35 63 57 43 86 15 74 24 153 93 77 50 99 132 136 43 43 27 89 93 42 53p 102 61 86 116 136p 82 74 150p 92p r—Revised. STOCKS J v— ,»•............' * JEWELRY STOCKS t / \ V~... ----------5AK5 PAPER ........ 100 SALES" V......... 2D 1932 1933 1934 1935
@FedFRASER