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THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
JULY i, 15,31
By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA
Business and Financial Conditions in the United States
Volume of production in basic in
dustries and employment at factories
' decreased further in May and vvhole1 l rice- declined. Foreign with
' drawals of gold which had been in
' large volume in May and the first
half of June practically stopped after
the middle of the month.
Production and employment.
Pro
duction at mines and factories de
clined further in May and the Board’s
seasonally adjusted index of industrial
production showed a reduction from
64 per cent of the 1923-1925 average
in April to 61 per cent in May. Out
put of coal was substantially reduced,
particularly in the anthracite fields;
shipments of iron ore showed less
than the usual seasonal increase, pro
duction of iron and steel declined,
and activity at textile mills and shoe
factories was further curtailed. In the
automobile industry output increased
. considerably.
In the first part of June activity in
the steel and cotton industries was
reported to have declined further
while output of automobiles continued
an
PCR
at about the same rate as in the latter
part of May.
Further reductions in employment
and earnings of factory workers ac
companied the smaller volume of
manufacturing output in May, par
ticularly in the steel and machinery
industries and in the textile and cloth
ing trades. Employment at automo
bile plants and in the seasonally active
food industries showed an increase.
Value
of
building
contracts
awarded according to the F. W.
Dodge Corporation, after increasing
somewhat in April and May, declined
slightly in the first half of June, re
flecting chiefly smaller awards for
public works and other non-residential building.
Railroad freight traf
fic decreased further in May, the
largest reduction being in shipments
of coal and miscellaneous freight.
Sales of department stores in leading
cities which had increased substan
tially during April, were smaller in
May.
Wholesale prices. Prices of com
modities at wholesale were 1.7 per
cent lower in May than April accord
ing to the Bureau of Labor Statistics.
There were large decreases in prices
of many domestic agricultural prod
ucts and of hides and textiles. Prices
of petroleum products advanced.
During the first three weeks of
June market quotations for a number
of non-agricultural commodities were
relatively steady, and prices of sugar,
meats and livestock increased. Prices
of wheat, after considerable fluctua
tions were at an unusually low level
PtR CERT
FACTORY EMPLOYMENT
1201---------------- ;-----------------|----------------1----------------- j
tic-------------------- : — ....... -
MR CENT
---------j— -----------i 1*0
•
Distribution.
U
WHOLESALE PRICES
PER CENT
Federal Reserve Board's index of factory em
ployment with adjustment for seasonal varia
tion. (1923 1925 average = 100.)
percent]
RESERVE BANK CREDIT
---------------- 1——---------
. -
f
u
"
5s
\
601
... T
'
1 “ '
50
1928 “
1927
1929
1910
1931
1932
Index number of industrial production, ad
justed for seasonal variation. (1923 1925 av
erage = 100.)
1928
1929
1930
1931
__
1932
—
Index of United States Bureau of Labor Statistics (1926— 100
Monthly averages of daily figures for 12 Federal
reserve banks. Latest figures are averages of
first 20 days in June.
Page One
^
I
at the beginning of the third week in
June.
Withdrawals of gold
from the United States continued
through May and the first half of
June and the country’s stock of
monetary gold declined by $435,000,
000 between May 4 and June 15.
After that date there was no further
decline in the total stock of monetary
gold, continued gold exports repre
senting gold previously earmarked by
foreign central banks. During the
Bank credit.
first part of May continued purchases
of United States government securi
ties by the reserve banks enabled
member banks further to reduce their
discounts; in later weeks, however,
funds released through these pur
chases were absorbed by the demand
for gold for export, and there was
also a decrease in member bank re
serve balances.
Loans and investments of reporting
member banks in leading cities, which
had declined sharply earlier in the
year, showed wide fluctuations after
the middle of May. In the middle of
June total loans and investments were
larger than a month earlier, the in
crease in holdings of United States
securities being more than sufficient to
offset declines in other investments
and in loans.
Money rates in the open market re
mained at low levels. Rates on prime
commercial paper were reduced to a
range of 2J4-2J4 per cent in the
second week of June.
_
Business and Financial Conditions in the
Philadelphia Federal Reserve District
Industrial activity continued to de
cline in May and some further sea
sonal recessions occurred in early
June. Retail business slackened more
than usual during May, while whole
sale and jobbing trade, sales of new
passenger automobiles and life insur
ance sales showed unusual increases
over April. Output of manufactures
and of coal declined sharply, reflecting
the trend of the season and the contin
uance of depressed conditions gener
ally. Building contracts also decreased,
although awards for residential con
struction rose more than was to be ex
pected. All indicators bearing on
production and distribution of com
modities continued at much lower levels
than in recent years. A noticeable
change for the better occurred during
May in the trend of commercial fail
ures, even though in the first five
months this year liquidations exceeded
the volume in the same period of other
years.
Factory employment and wage
earnings decreased materially, while
building trades
employed
more
workers and paid out more wages in
May than in April. Most of the other
occupations, industrial and service in
character, reported further reductions.
The demand for
manufactured
products
continues
slack, and sales have declined further
since the middle of last month. Gains
in unfilled orders for manufactures
are reported by an exceedingly small
number of factories as compared with
those showing further declines. The
trend of prices for factory products
has continued downward.
Manufacturing.
Page Two
Supplies of finished goods and raw ing a decline of 43 per cent from a
materials held by factories again have year ago in the amount of wages paid.
declined in the month and are smaller This reduction in wage earnings re
than a year ago. Increases in a few flected chiefly the curtailment in oper
instances reflect a seasonal tendency. ating time, which declined 10 per cent
in May-as compared with April. In
Figures for the country indicate that
the country as a whole, factory em
stocks of manufactured goods this
year have been smaller than at the ployment decreased 4 per cent and
wage earnings 5 per cent in the month :
same time in the past four years,
while inventories of raw materials these reductions also were larger than
have continued substantially larger.
customary. Compared with a year
Settlements of accounts recently ago, national factory employment was
have shown tardiness, probably not 20 per cent smaller and payrolls 36
an unusual characteristic at this time. per cent less.
Output of manufactures showed a
As in the case of mercantile trade,
collections have continued smaller rather severe reduction from April to
May. Our index number, which al
than in the previous year in most
lows for the number of working days
manufacturing -lines.
Factory employment in this section and for seasonal changes, declined to
in May was reduced by 5 per cent as 56 per cent of the 1923-25 average
from 60 in the previous month, a de
compared with April, which was a
considerably sharper drop than usually crease of almost 8 per cent. The naoccurs
in
this
period. The amount
INDU5TRIAL PRODUCTION
of wages paid de
PHILADELPHIA FEDERAL RESERVE DISTRICT
clined 9 per cent;
PERCENT
in the past two
MANUFACTURING
years at the same
time the decrease
in payrolls was less
pronounced. The
V i M
employment index
number for Penn
sylvania in May
was 61, showing a
ji A
COAL MINING—-"t / i,
reduction of 21 per
cent in the number
of factory workers
as compared with
May 1931.
The
payroll index num
ber was 37, indicat
Electric power
Philadelphia Federal Reserve
District
Percentages are computed
from daily averages
May 1032,
per cent change
compared with
May
1031
Apr1932
Rated generator capacity
+ 1 4
-116
-10.9
+ 0.8
-26.0
-10.3
-15.8
- 0.1
- 9.6
Sales of electricity (11 systems1
Lighting.......................................
Municipal..............................
Residential and commercial
Power...........................................
M unicipal.................................
Street cars and railroads. .
Industries.................................
Industries (working days). .
All other sales.............................
-10 5
- 1.2
+ 0..-,
- 1.4
-14.9
4- 7.8
-11 .3
—10.5
-16.5
- 2.8
-11 .7
-15.6
-11 .4
-10.0
-11 .2
+ 1.0
- 9.3
-12.1
— 7 2
- 7.0
Philadelphia Federal Reserve District
“Unadjusted” indexes reflect
merely the actual changes which
may or may not be up to the
usual seasonal expectations.
Index numbers—expressed in percentages 0/ 1923-1025 average, which
is taken as 100
Adjusted for seasonal variations
Not adjusted
Perccn tage corr parison
May
1931
Apr.
1932
May 1932
\ dth
Sp
“Adjusted” index numbers make
allowance for the usual seasonal
changes which result from an
uneven distribution of business
between the months of the year.
They are the most significant
indexes because they show im
provement or decline beyond the
level usually to be expected.
Month
ago
Year
ago
5
months May
1932
1931
with 5
months
1931
Production and sales of electric
power declined more than was to be
expected, after showing an appreciable
gain in the previous month. Indus
trial consumption of electrical energy
May
1932
Apr.
1932
Productive activity
Manufacturing—total....................
Metal products...........................
Transportation equipment... .
I* ood products. . . .
1 obaeeo and products..............
Building materials.. .
Allied chemical products.........
Leather and products
Paper and printing. . .
Electric power output................
Elec. pwr. used by industries..
80.8 60.2r
68.5 36.6
83 7
60.7 48.6r
80.3 72.0
101 .5 78.3
46.0 28.3
109.4 87.4
132.0 103.2
102.4 83.8
201 .6 188.6
138.9 126.2
55.5p - 7.8
32.3 -11.7
50.0
70. Ip
79.3
24.6
86.9p
97.5p
77.8
178.2
116.0
,
-22.4
-44.9
-17.6
-12.7
-21.9
-47.5
-20.6
-26.1
-24.0
-11 .6
-16.5
+ 2.9
- 2.6
+ 1.3
-13.1
- 0.6
- 5.5
- 7.2
- 5.5
- 8.1
Factory employment—Penna..
-13.3
-10.5
-19.6
-33.9
-12.5
-14.9
-16.5
- 3.8
- 8.4
58.9 r 54.5p
32.0
79.8
68.2
61.6 51 .Or 51.9
70.3p
80.0 71.4
77.1
198.6 71 .4
25.5
49.8 28.1
111.7 88.5 88.4p
120.1 101.7 88.7p
103.2 85.4 78.5
187.5 184.8 165.7
141.7 127.5 118.3
5 1*
Factory wage payments—Penna.
Coal mining
A nthrneito.
Bituminous........
-31.3
-52.8
-10.1* -43.3* -34.2*
-36.9 -34.2 -21,1
-39.5 -34.7 — 20.0
-16.1 -31 .2 -28 4
74.8
75.0
73.3
78.0
81 .0
60.1
49.2
49.0
50.4
59.9
33.0
24 .0
32 1
33.6
16.3
19.4
33.3
32.6
16.7
6.7
22.8
- 3.0
4- 2.5
66.8
04.9
60.3
65.8
41.5
37.3
73.7
75.0
66.0
80.7
85.0
54.7
48.5
49.0
45.4
Building and real estate
Contracts awarded!—total. . . .
Contracts awarded!—residential
Permits for building......................
Mortgages recorded in Phila.. .
Real estate deeds recorded in
Philadelphia........................
Exclusive of Sheriff deeds
(1030 — 100) ...........................
Sheriff deeds (1930- 100)........
Writs for Sheriff sales in Phila.. .
-31.5
-45.6
-49.4
-74!. 1
-29.6
-44 .9
-42.3
-44.5
-27.6
73.1
42.3
26.6
30.1
39.3
19.7
27 .4
35.0
39.8
21 .4
7.4
21.2
- 7.1
- 9.7
- 2.3
72.1
64.3
65.1
4- 1 2*
78.5
-2S.6*
0.0* + 12.4* 130.4 182.6 130.4
1011.8 1039.9 1003.5 - 3.5 - 0.8 + 8.2 1062.4 1091.9 1053.7
Distribution
Retail trade—sales.....................
86.1
Retail trade—stocks...................... 74 .9
W holesalc trade—sales...........
79.8
VV holesale trade—stocks............
80.8
Freight ear loadings (Allegheny
district).......................................... 72.2
Life insurance sales...............
130.6
New passenger auto registrations 87.4
66.4
60.5r
60.8
68.3
63.5
60.9
63.1
67.6
+
4-
4.4
0.7
3.8
1.0
-26.2
-18.7
-20.9
-16.3
-21.0
57.8
93.5
41 .9
48.9
98.1
50.5
— 15.4
4- 4.9
4-20.5
-32.3
-24.9
-42.2
-24.6 75.1
-14.8 139.7
-31 .4 125.9
-17.6
87.3
74.9
74.8
79.4
65.9
63.1 r
56.7
68.4
64.1
61 .0
60.2
66.5
50.9
56.1
104.7 105.0
72.7
63.3
Business liquidations
-40.4* - 4.6* + 16 8* 150 0 240 3 143.1
-49.8* +322.6* +139.4* 57 5 484 5 243.0
Payment of accounts
Check payments.....................
Rate of collections (actual, not
indexes)
Retail trade.............................
95.1
62.0
67.5
1
- 8.1
-34.8
- 2.9
- 0.4
-6.1
(000.000*8 omitted
in dollar figures)
94. 1
68.2
61 .4
31.4
55.9
-14.6
-30.4
0.0
Generated output (10 systems)
Hydro-electric...........................
Steam...........................................
Purchased....................................
Business Indicators
c
tional index number also fell off to
60, indicating a drop of 2 per cent
from April. In comparison with a
year ago, both national and local in
’ dexes were roughly 30 per cent lower,
establishing new low records for the
past ten years.
Most of the manufacturing groups
sustained considerably more than the
usual seasonal losses in productive
activity, resulting from a continuous
dearth of orders. Striking exceptions
to this tendency are found in the case
of output of transportation equipment
and tobacco products, which showed
larger gains than are common for
May. All groups showed greatly re
duced operating schedules as compared
with May 1931, but the sharpest de
clines continued in the output of
metal, textile and leather products,
paper and printing and building
materials.
While tlie majority of the manuss factoring lines reported sharp reces
sions in the month, the number of
individual enterprises that had rather
unusual gains was more conspicuous
than in several preceding months.
An examination of the table on the
last page discloses that extra-seasonal
gains in May were more numerous
than those in the two preceding
months; among the outstanding ex
amples were iron castings, automobile
parts and bodies, shipbuilding, certain
railroad equipment and textile prod
ucts, cigars, and such building mate
rials as lumber products, and paints
and varnishes. Outside of shipbuild
ing and meat packing, all the impor
tant manufacturing industries in May
operated at a materially lower rate
than a year ago.
27.6
52 7
26.8
Per cent c hange !c^m
May
1931
Feb.
1932
Mar.
1932
Apr.
1932
May
1932
$777
$702
S693
$671
$652
- 2.8
- 16.1
433
455
+ 5.1
- 21.6
Month
ago
Year
ago
Banking and credit
Reporting member banks
Loans to customers....................
Open market loans and investments............................. .. .
All member banks—net demand
and time deposits ..................
580
473
458
2,426
2,002
1,983
1,964
1,962
- 0.1
- 19.1
Bankers’ acceptances outstanding....................................................
23.4
16.0
15.2
15.1
14.1
- 6.6
- 39.7
Federal Reserve Bank
Bills discounted...........................
Other bills and securities.........
Reserve ratio.............................
18
49
88.4%
59.7%
97
71
64.9%
74
82
67.3%
63
112
62.3%
-14.9
+36.6
- 7.4
+250.0
+ 128.6
- 29.3
* Computed from unadjusted indexes.
t 3-month moving average.
1 22
07
p-Proliminary.
r-lievised.
Page Three
CONTRACTS AWARDED- CUMULATIVE
million
%
OUTPUT OF METAL PRODUCTS
PHILADELPHIA FEDERAL RESERVE DISTRICT
MILLION
TOTAL
RESIDENTIAL
PHILADELPHIA FEDERAL RESERVE DISTRICT
1928
400
PERCENT
1928
hA
ELECTRICAL MACHINERY
AND APPARATUS
300
1930
200
1930
IRON AND STEEL
CASTINGS
100
J f MAM J J A SON 0
JFMAMJJASOND
Source: F.
/(’.
Building. Awards
of building con
tracts in May were 67 per cent of the
April volume. This decline was due
to smaller awards for other types of
construction than dwellings, since
residential contracts showed a gain
of 21 per cent over April. Mayawards for residences were 55 per
cent, while contracts for other build
ings were 39 per cent of those let in
May 1931. In the first half of June
awards declined seasonally and were
less than one-half of those a year
ago. This unfavorable comparison
with last year reflects the influence
partly of depressed industrial condiMav 19312, compared with
Apr. 193 2. per cent change
Pennsylvania..............
Allentown................
Altoona.....................
Bethlehem...............
Chester.....................
Erie............................
Harrisburg...............
Johnstown...............
Lancaster.................
Philadelphia...........
Pittsburgh...............
Heading....................
Scranton..................
Wilkes-Barre..........
York..........................
1930
Pod tie Corporation
in May declined 8 per cent more than
it usually does in that month and was
17 per cent smaller than in May 1931.
In the first five months of this year,
output of electric power was 4 per
cent smaller and purchases by indus
tries 8 per cent less than in the same
period last year. The accompanying
table gives further comparisons.
Building construction
activity
1927
Em
ployment
i Payrolls I
-f 7.2
+ 0.5
- 6.7
+ 9.1
+ 4.2
i -40.3 1 -10.2
+ 2.9
-13. S
+52.«
! +10.0 , - 0.5
1 +23.5
+20.1
1 - 4.2
+2;>. 5
+ 10.9
1 +12.3
1 -4.1
-4.9
-2.4
-1.7
! +11.5
+ 23.0
: +14.5 ; +25.0
; + o.o
+ 4.5
+ 6.6
Operat
ing
time *
; + 10.5
| + 5.5
-IS. 2
-19.8
■ + 9.0
+54.6
+ 12.a
+30.1
+21.1
1 + 12.2
+ 1.0
— ,).l
+ 14 .2
+2.-..2
— 2.3
* Figures on employe-hours are from 1.011 con
tractors while those on employment anti payrolls
art* from 1,077 contractors.
Source: Pennsylvania Department of Labor
and Industry
Page Pour
lions and partly of lower construction
costs, which have been almost steadily
on tbe decline in tbe past two years.
Building permits for new opera
tions declined more sharply than
usual, following an exceptionally
large rise in the previous month. In
the first fi\e months of this year, the
value of building permits was 45 per
cent smaller than in the same period
last year. Kmployment and psfyrolls
in building trades in fourteen cityareas of Pennsylvania were 7 per cent
larger in May than April; this does
not include the construction of streets
and highways, and general contract
ing, two classes which report much
higher gains in both employment and
payrolls during the month. The ac
companying table gives comparisons
by city areas.
Agriculture. Despite
variable wea
ther, the agricultural situation has
been generally satisfactory except for
continuous price weakness. Droughty
conditions in May and the early part
of June were relieved by widespread
rains which stimulated the growth of
crops and improved the condition of
pastures and meadows.
As a result of the cool nights and
dry weather which prevailed during
the early part of the growing season,
truck and garden crops, particularly
in the northern counties, are not as far
advanced as they were a year ago at
this time. Orchard fruit prospects
vary widely; for the district as a
whole, however, indications now are
that the crop will be slightly smaller
this year than last.
Because of adverse marketing con
i ditions. the outlook for dairying is
somewhat less favorable than in the
past two years. Output of creamery
butter in Pennsylvania in May was the
largest shown for any month this year
and was close to the volume of a year
ago.
BiTtter and eggs held in storage in
this section increased between May
and June, while holdings of poultry
showed a marked decline; as com
pared with a year ago, cold storage
stocks of poultry alone were larger.
Prices of farm products declined dur
ing May and in early June showed
some further recession.
Coal. Demand for anthracite has
slackened since the middle of hist
month, reflecting partly seasonal in
fluences. Output ol collieries in May .
which averaged less than 132,000 tons
daily, showed an unusually sharp de
cline from the rate of the preceding
month and was 34 per cent below the
level of a year ago. In early June the
weekly output of mines increased
slightly. Shipments fell off during
May and were exceedingly light ns
compared with those of a year earlier.
Wholesale prices of anthracite were
slightly lower than in April.
Production of Pennsylvania bitu
minous coal declined in May by a
larger amount than was to he ex
pected, owing to slackened demand by
industries; as compared with a year
ago, the output of mines was 31 per
cent smaller. In the first fortnight
of lime production decreased further.
Shipments during May- were smaller
than in the preceding month and were
only about 64 per cent of those of a
year ago. Average quotations for
soft coal throughout the countryshowed a reduction of nearly 1 per
cent between April and May.
Distribution.
Retail sales of de
partment, apparel, shoe and credit
TEXTILE FIBERS
OUTPUT OF KNIT GOODS
UNITED STATES
MILLIONS
IoFLBSH
300
DOLLARS
Iper LB
PERCENT
PHILADELPHIA FEDERAL RESERVE DISTRICT
1923-25 AVG.* 100
MILL TAKINGS
COTTON
A
___
L-~—
AX
HOSIERY
aA
a
A
„
MILL TAKING
WOO L
PRICE
-----—->V
h/vA
MILL TAKINGS
PRICE
— ----- J.... ..... ...
SILK
1929
f
1930
1932
Sources: Department of Commerce, Fairchilds Publications, Dun's Review
stores during May were 3 per cent
smaller than in April; usually there
is a small increase in this period. Ex
ceptional declines occurred in the
jvdes of department and women’s ap
parel stores, while business in men’s
apparel and in shoes was considerably
larger than is customary. The gain
in the sales of credit stores was not as
large as it usually is in May.
I'he trend in retail business of the
four lines covered by our index num
bers has been downward since the
third quarter of 1929, as is shown bv
the charts on the last page. In May
*'this year the seasonally adjusted index
number of dollar sales was 64 per cent
of the 1923-25 average, showing a
decline of 26 per cent from a year
ago and of 33 per cent from four
years ago. This decline has coincided
with a steady recession in retail
prices, a fact which undoubtedly has
affected the size of dollar sales.
Wholesale and jobbing trade in
>May showed a gain of 6 per cent over
April, indicating more than the usual
improvement during the month. This
was the first upturn in wholesale
business in the past five months, when
seasonal changes are taken into con
sideration.
More than customary
gains in the sales of shoes, electrical
supplies, groceries, and hardware
caused the unusual rise in the aggre
gate figure; the remaining four lines
reported either actual declines or in
creases that were less than is normally
expected.
The adjusted index number for all
lines in May was 63 per cent of the
1923-25 average or about 21 per cent
lower than a year ago and 32 per cent
below May 1929. As in the case of
other commodities, the drop in dollar
^sales at wholesale reflected the sharp
UNDERWEAR
\
S-N- --------- --------_
\
ADJUSTED fOR SEASONAL VARIATIONS
1928
1929
1930
193 1
1932
Source: United States Bureau of the Census
decline in commodity prices in recent
years.
Stocks of merchandise at both re
tail and wholesale establishments de
clined seasonally and were 19 and
16 per cent smaller than at the end of
May 1931. 'I'he rate of stock turn
over during the first five months of
this year was 7 per cent lower for
retail and 5 per cent lower for whole
sale trades than in the same period
last year. Payment of accounts, as
indicated by the percentage of collec
tions during May to the total receiv
ables at the beginning of that month,
was less rapid than a year ago by 15
per cent in retail trade and by 6 per
cent in wholesale trade.
Freight car loadings in this section
declined sharply instead of increasing
as they usually do in May, owing
largely to reduced shipments of coal.
The drop in the movement of mer
chandise and miscellaneous commodi
ties, comprising largely finished and
semi-manufactured products, was less
rapid than that in other classifications^
Compared with a year ago the de
crease amounted to 32 per cent and in
the first five months shipments were
25 per cent less than in the same
period last year.
Sales of new passenger automobiles
have increased substantially. Registra
tions in May showed a gain of 15 per
cent instead of the normal seasonal
decline from April, but they were 31
per cent smaller in the first five months
this year than last.
Sales of ordinary life insurance in
this section showed a slight gain instead
of a decline as is ordinarily to be ex
pected. Nevertheless, sales were 25
per cent smaller than a year ago and
for the year to date, they were 15 per
cent less than in the first five months
of 1932.
Financial
conditions.
Persistent
quiet in general business was reflected
over tlie past month in a further
decline in member bank loans to cus
tomers. Currency demand at the re
serve bank was without special
feature, but borrowings from this
bank increased somewhat, owing ap
parently to the influence of Treasury
operations. Rates in Philadelphia on
prime commercial loans have changed
little, falling for the most part within
a range of 4'/2 to 5 per cent.
During the five weeks ended June
22, bills discounted by this bank rose
from 60 to 67 millions; this was due
principally to heavier borrowings by
banks in some of the larger cities
throughout the district, exclusive of
Philadelphia. A decrease in the re
serve ratio from 61.8 to 54.5 per cent
is to be accounted for mainly by a
decline of 27 millions in cash reserves.
Transfers for the government and
payments by this bank as a result of
its participation in the open market
operations of the federal reserve sys
tem were only partly balanced by
amounts gained by the member banks
in the settlement of miscellaneous
commercial and financial transactions
with other districts. The bank’s hold
ings of United States securities in
creased from 111 to 131 millions and
compared with only 49 millions a year
ago.
Nearly 45 millions was withdrawn
from depositary banks by the Treas
ury during the five week period, the
greater part being taken from deposits
set up in payment for United States
Government securities issued some time
ago; in addition the Treasury received
about 27 millions from taxes and mis-
Page Five
PRIMARY DISTRIBUTION
OUTPUT OF SHOES
percent
PERCENT
PHILADELPHIA
FEDERAL RESERVE
DISTRICT
SHIPMENTS OF MERCHANDISE
AND MISCELLANEOUS COMMODITIES
WHOLESALE
DOLLAR SALES
UNITED STATES
ADJUSTED TOW SEASONAL VARIATIONS
1927
193 I
1927
1932
1928
1929
1930
1932
1931
Source: American Railway Association
cellaneous sources.
Out of total
receipts of 72 millions, the Treasury
disbursed about 39 millions locally, so
that the net loss to the local market
was reduced to 33 millions. The
banks obtained the greater part of the
funds required to meet this loss from
a favorable balance of 22 millions in
the settlements with other districts, no
doubt the result in part of investment
sales; the remainder was supplied by
drawing upon reserve deposits to the
extent of 4 millions, and by borrow
ing 7 millions from the reserve bank.
The figures of the weekly reporting
member banks reveal a further decline
of 16 millions in loans to customers
during the last five weeks, continuing
a trend which has been followed with
few material interruptions for many
months. Despite these repayments
and income tax collections late in
the period, net demand and time
deposits increased from 883 to 890
millions. About 37 millions of new
securities was allotted to the reporting
banks on June 15. but their holdings
of government obligations increased
Reporting member
banks
(000,000’s omitted)
i
June
22
1032
Loans to customers:
On securities. , .
$
All other.
Loans to open market
l nited States securities
Other securities.........
May.
18
1932
319
S
31b
7 !
196
270
Total loans and in
vestments .
SI.108
Net demand and time j
deposits.
890
Government, deposits . I
35
329
322
6
176
270
June
24
1931
S
414
45
226
321
81.103
81,361
883
36
1,176
29
only 20 millions between May 18 and
June 22, evidencing the sale of part
of them; holdings of other securities
show practically no change.
Daily averages of net demand and
time deposits of
Philadelphia mem
ber banks show
SALES OF LIFE INSURANCE
NIEW PAID-FOR ORDINARY INSURANCE
that there was an
increase from
PENNSYLVANIA
April to May af
DELAWARE
ter months of
NEW JERSEY
rather steady de
cline. Deposits in
banks outside of
the city declined
further in May,
UNITED STATES
but the decrease
in each of the
two latest months
was smaller than
in any of the six
months preceding
ADJUSTED FOB SEASONAL VARIATIONS
them.
I 920
1929
1930
1932
The decline in
Source: Life Insurance Sales Research Bureau
deposits of mem
Page Six
Net demand and time
deposits of all member
banks
(000,000’s omitted)
In
Outside
Phila
Phila Totals
delphia delphia
1931 Doc............................. 8 853 81,226 82,079
1932—Jan..............................
832
2.046
1.214
Feb. . . . . . . . . . . . . . . . . .
803
1,199 2,002
Mar..........................
1,185
798
1 .983
ViT. . . . . . . . . . . . . . . . . . . . . . . . .
786
1,178
1 ,964
May...........................
1,902
791
1.171
1931—May........................... 1,089
1,337
2,426
ber banks in Philadelphia from May
1931 to May 1932, was 27 per cent,
while check payments in this city, as
shown by figures of debits to in
dividual accounts, decreased 38 per
cent. Although these two sets of fig
ures were not reported entirely by
identical banks, they are sufficiently
comparable to indicate a lower rate of
deposit activity than a year ago, sug
gesting further the reduction in pro
ductive and distributive activity.
Federal Reserve
Philadelphia
(Dollar figures in
millions)
Changes in —
June 22
1932
Hills discounted
for banks in—
Philadelphia. . . 8 12.2
20 other large
cities .................
25.3
Other communities................
29.9
Total bills dis
counted
8 67.4
Hills bought..........
5.4
1 nited States socurities ......... i 131.4
< 'ther securities . . j
1 .6
Total bills and se- [
curities............ 8205 8
1 ed. res note cirdilation........... 247.6
Member bank reserve deposits 115.7
Government deposits...............
8.2
foreign bank deposits...............
1 .8
('a.-h reserves .
203.6
Reserve ratio........
54.5%
Five
weeks
One
year
+$ 1.5
+s io.i
+
4 2
+
21.2
+
1.0
+
IS.5
+$ 7.6
+ 2.0
+$ 49 8
+
5.2
-F 19.8
.1
+
—
82.3
.6
+$29.3
+$136.7
—
.5
+ 103.5
-
3.9
-
28.4
+
7.3
+
1 .0
- 2.8
— 27 2
- 7.3% -
59 1
31.0%
FEDERAL RESERVE BANK OF PHILADELPHIA
Payrolls
May 1932
Employment and
wages
in Pennsylvania
_
_
change since
MEMBER BANKS.
- - - - - - - - -RESERVE DEPOSITS- - - - - -j
May
1931
-43.3
BILLS_ _
DISCOUNTED
-48.1
-49.3
-44.4
-23.4
-29.3
-34.9
-14.8
-19.6
- 8.7
-26.2
-28.0
-21.4
-29.7
-16.3
-17.8
Transportation equipment... .
Automobiles............................
Auto, bodies and parts....
Locomotives and cars..........
Railroad repair shops..........
Shipbuilding........................ .
CURRENCY DEMAND
PHILADELPHIA FEDERAL RESERVE DISTRICT
- 5
+
+
-
2
8
1
3
4
2
3
6
1
1
2
O.i
-24.5
- 8
0.2
+
2
Foods and tobacco....................
Bread and bakery products.
Confectionery........................
Ice cream.................................
Meat packing.........................
Cigars and tobacco...............
Stone, clay and glass products
Brick, tile and pottery........
pottery.
Cement............................
Glass.................................
1929
1930
1931
Lumber products......................... 41.7
Lumber and planing mills.. 31.4
Furniture................................... 39.2
Wooden boxes........................ 57.5
1932
Percentage change—May 1932 from May 1931
City areas*
Employment
Wage
payments
p“Sf
Dahlia
7Voillp\
- 9.7
+ 2.6
-10.7
-10.2
- 4.3
- 8.0
— 6.5
- 0.3
- 7.4
- 0.6
- 6.5
- 8.2
-18.3
- 1.8
- 1.1
-12.4
-10.2
-15.6
-20.7
- 5.9
- 3.7
-20.9
-10.2
- 6.0
+0.4
-22.5
- 4.5
- 1.6
- 79.2
4- 41.4
- 54.2
- 55.6
- 18.2
- 79.1
- 74.5
- 77.4
- 80.7
- 12.4
+144.2
+ 42.2
- 49.5
-14.3
- 7.4
- 0.8
- 8.6
-19.3
-13.2
- 0.7
- 6.3
- 9.1
- 2.2
-11.7
-10.4
-16.4
* Area not restricted to the corporate limits of cities given here.
-14.0
- 3.4
+15.0
0.0
-12.3
- 6.1
—22.7
+ 16.3
+ 2.5
-11.0
+ 2.3
48.3
76.5
Paper and printing .................. 84.8
Paper and wood pulp.......... 74.8
Paper boxes and bags.......... 63.9
Printing and publishing... . 91.2
May 1932 from April 1932
Philadelphia.........
Reading..................
Scranton................
Trenton..................
Wilkes-Barre........
Williamsport....
Wilmington..........
Y ork........................
Chemical products.................... 77.8
Chemicals and drugs........... 59.0
Coke.......................................... 61.1
Explosives............................... 67,4
Paints and varnishes........... 86.0
Petroleum refining...................110.2
I - 3.7 I - 2,4
Leather and rubber products .
Leather tanning.....................
Shoes.......................................... 101.3 +13.6
Leather products, other... . 66.0 —18.8 — 8.6
Rubber tires and goods... . 79.2
—10.1 + 2.3
^llentown. . .
Altoona.........
Harrisburg. . .
Johnstown.. .
Lancaster....
Philadelphia.
Reading.........
Scranton....
Trenton.........
Wilkes-Barre.
Williamsport.
Wilmington..
Y ork...............
Harrisburg............
- 7.6
- 3.6
-12.4
- 8.7
+ 4
3.2
-24.7
-24.6
-35.3
-23.9
- 7.6
-15.0
-14.9
-20.7
-16.4
- 7.2
-28
+0
+ 3
- 2
+ 5
-15.5
Textile products.........................
Cotton goods..........................
Woolens and worsteds.........
Silk goods................................
Textile dyeing and finishing
Carpets and rugs..................
Hats..........................................
Hosiery.....................................
Knit goods, other..................
Men’s clothing.......................
Women’s clothing.................
Shirts and furnishings.........
- 2
-55.2
- 9.1
- 7.3
+ 7.7
-14.0
+ 3.7
- 0.8
-51.9
-56.3
-62.1
-15.8
-26.5
-11.1
-15.9
-15.1
-12.5
0.0
-10.4
+ 4.7
-10.5
-17.8
- 4.0
-10.7
-10.1
-21.3
- 5.2
Metal products...........................
Blast furnaces........................
Steel wks. and rolling mills
Iron and steel forgings........
Structural iron work............
Steam and hot wtr. htg. app.
Stoves and furnaces.............
Foundries.................................
Machinery and parts...........
Electrical apparatus.............
Engines and pumps.............
Hardware and tools.............
Brass and bronze products.
— 10.1
-52.2
-52.8
-56.9
-55.4
-49.7
-35.3
- 6.9
-55.8
All manufacturing industries
(51). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Apr.
1932
71.5
55.6
52.9
79.1
— 9.1 — 0.9
— 7.8 + 0.5
—18.9 — 7.9
— 8.6 — 0.5
Anthracite mining...................... 65.1 —16.9 — 4.5 48.6 —23.9 —19.5
-23.9 -19.5
Bituminous coal mining......................................... —2.6 ............................... —14.6
.......................... -14.6
Canning andpreserving........................................... — 1.6 ................................ +4.4
Construction and contracting............................... +9.6
............................ +10.1
Hotels........................................................................... -0.5 ............................... - 0.3
Laundries.................................................................... —0.6 .............................. — 0.1
Dyeing and cleaning................................................ +7.1
+7.3
Public utilities............................................................ — 0.7 ............................ — 0.7
Quarrying and non-metallic
mining...................................................................... + 5.4
+13.2
Retail trade................................. 84.2 — 6.5 — 0.5 ...........................................
Wholesale trade........................ 81.9 -8.7 -1.1 ............................ .........
* 1923-1925 average = 100.
p-Preliminary figures.
Page Seven
Index numbers of individual lines of trade and
manufacture
Philadelphia Federal Reserve District
RETAIL TRADE
PHILADELPHIA FEDERAL RESERVE DISTRICT
Index numbers—expressed in percentages of the 1923-1025 average
which is taken as 100
"Adjusted” index numbers make
allowance for the usual seasonal
changes which result from an un
even distribution of business be
tween the months of the year.
They are the most significant
indexes because they show im
provement or decline beyond the
level usually to be expected.
"Unadjusted” indexes reflect
merely the act ual changes which
may or may not be up to the
usual seasonal expectations.
Not adjusted
Adjusted for seasonal variations
Percentage corr parison
May 1932,
with
Month
ago
May
1931
Apr.
1932
Y ear
ago
5
months Mav
1931
1932
with 5
months
1931
-21 0 87.3
80.2
-19 7
69.3
-29.1
105.6
-27.4
-24 3 111.7
96.2
-33.7
May
1932
DEPARTMENT
Apr.
1932
May
1932
65.9
65.9
49.0
95.0
75.4
55.3
64.1
63.1
52. S
77.4
83.3
58.5
63.1 r
61 .4 r
64 Or
86.2 r
72.4
54.6
61 .0
59.0
60.5
83.1
70.5
54.0
Retail trade
Sales
All stores.....................................
Women’s apparel..................
Credit.......................................
86.1
81 8
74.5
102.2
100 6
89.1
66.4
69.4
51 .3
81 5
68.5
57.0
63.5
64.4
56 7
75.0
75.0
54.2
- 4.4
- 7.2
+ 10.5
- 8.0
+ 9.5
- 4 9
-26.2
-21 3
-23.9
-26.6
-25.4
-39.2
74 9
70.3
73.3
109.7
89.8
67.0
60 5 r 60 9
59 Or 59 2
60 2
80 8 r 82 3
71 .0 69 1
52.5
54 5
+ 0.7
+ 0.3
0.5
4* 1 .9
- 2.7
+ 3 8
—18
—15
-17
-25
— 23
-18
Stocks of goods
Credit
74.9
69.9
73.5
110.7
91.6
tjli.3
7
8
9
0
1
7
Rate of stock turnover
- 6.8
1 .62
-17.6
- 9 4
-119
-25 8
-38 8
- 9.0
-31.3
-27 1
-22 0
74.8
53.4
100.5
50.0
82.8
83.2
74.2
43.9
77.3
V >'
STOCKS
1.51
Wholesale trade
Total of all lines..........................
Dry goods..................................
Electrical supplies..................
Groceries....................................
Paper..........................................
79.8
53 .9
100 5
53 2
108.9
84.0
67 5
52.3
78.1
Stocks of goods
80 8
108.9
51 8
Electrical supplies.................. 104.3
Groceries................................... 95.7
Hardware.................................. 77.6
61.1
85.5
60 8
43 0
89 1
39.8r
46 4
80 4
48.7
36 2
54.1
68.3
106 3
43 4
77 0
78 5
69,7
58 8
70 9
+ 3.8
+23.0
- 2.7
-10.6
+26.9
+ 4.2
+ 1.0
- 8 8
- 4.3
67.6
100.1
41 .9
77.7
81 8
65.9
53 2
71.7
-20 9
- 19
-13.7
— 33 1
-45 9
- 0,2
— 27 1
-36 9
-33 7
+
+
+
63.1
52.9
86 7
35 6
58 9
83 8
49.2
33.0
51 .8
-16 3
- 8.1
-19.1
-25.5
-14.5
— 15.1
-12.9
-16.1
1.0
5.8
3.5
0 9
4 2
5.5
9 5
11
Rate of stock turnover
5 months (actual, not indexes)
Output of manufactures
Iron 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.........................................
Lumber and products. . .'.............
- 5.4
14.5
33.9
30 9
60.7
24.6r
47.7
27.8r
49 3
53.6
93.7
16.1 r
46 i
29.8
44 2
14.5
19 7
174.3 169.9
75.8
96 0
64 4 37.1
51 .7 32.2r
43.5
57 4
92.5
106 3
122.0 96.6
80.7 46.7
26.7
48.0
18.3
26 2
13.8
26.2
26.3
24.5
48.6
11.3
31.1
16.2
177.1
58 8
39 lp
23.6
47.7p
83 4
99.6
35.2
20 9
20.2
- 4.8
— IS 2
+ 6 9
-119
- 9.3
-29 8
+ 4.4
+11.7
+ 4.2
-22.4
+ 5.4
-26.7
+ 9.7
- 9.8
+ 3.1
-24.6
-21 7
+ 10 4
- 0 2*
- 4.7
-12.7
+ 2,6
+ 2.2
- 2.6
- 7 7
-113
+ 0 9
4.6
9 9
-11
-10.6
Slaughtering, meat packing......... 78.7
Sugar refining................................... 72 8
Canning and preserving................ 38 9
Cigars................................................. 100 6
73.6
Paper and wood pulp................
Printing and publishing................ 108.2
138 0
Leather, goat and kid.................... 126.3
Explosives.......................................... 73.8
Paints and varnishes...................... 88.1
Petroleum products........................ 40 5
Coke, by-product............................ 89.5
99.8 95.1
67.6
77.4
28. Op
27.3
76 7
78 4
55 8
57.3
82.3
89.2
97 8
10.3
97 3p
96.4
57 9p
60 7
59.5
65 4
23.0 j 21.7p
55.8
49.9
♦Computed from unadjusted indexes.
p-Prcliminary.
Page Eight
79.4
110.0
51.3
99.1
90.9
79.9
65.4
84.6
-59 3
-56 8
-44.9
-50.3
-48 1
-75.5
-29.6
17 8
+ 1.6
-38.8
-39.3
-54.4
-16 9
-21.5
-18.4
-56.4
-56.5
-22 9
—16.8*
+20 8
- 7.1
28 0
-22.1
-24.2
-23.9
-29 1
-23 0
-21.5:
-25.8
-13 4
-44 2
r-Revised.
-55.5
-49 5
-46 9
-58.3
-38 8
-41.8
+ 17 0
-31.7
- 9.7
-20 2
-22 8
-23 9
-13 4
- 3.4
-11.0
-33 7
-47.9
-18.2
-15 8*
+ 17.4
+ 15.5
-28.1
-20.3
-18 7
-16.2
— 11.1
-18.8
-27.3
-13.0
- 4.5
-37.1
56.7
45.6
90.0
34.6 r
42.7
74.0
50.2
23.5
54.1
68.4
107.4
43.4
75.5
78.5
73.9
56.4
70.9
1.84
35.3
63.7
49.6
51.3
86.2
43.7
46.4
19.4
179.5
92.2
60.3
61.2
56.8
106.3
123.2
91.2
50.9
24.4
102.1
77.9
89.5
29.9
97.6
73.6
109.2
125.G
114.9
74.5
93.4
141.0
93.1
60.2
52.4
86.7
33.5
44.8
83.0
54.1
27.7
51.3
66.5
101.1
41.5
73.8
77.7
67.9
56.9
71.0
women's apparel
STOCKS
SALES
SHOE
I .74
16.4
32.4
25.6r
28.4r
46.6
20.1 r
32.5
15.5
173.3
74.3
34.0
33.3 r
43.5
92.5
94.7
46.2
28.0
17.4
85.1 r
97.2
100.6
23.0
69.8
57.9
91.0
110.3
93.5
61 .3
62.5
122.8
58.0
14.3
27.5
27.4
25.5
44.7
14.2
32.7
15.9
182.4
56.4
37.1 p
23.2
47.2p
83.4
100.6
39.8
22.2
18.8
84.9
93.7
83.1
22.8p
76.0
55.8
83.1
89.0
88.5p
58.5p
69.3
121.9p
51 .9
stores
STORES
SALES
STOCKS
CREDIT STORES
SALES
STOCKS
@FedFRASER