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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT JULY i, 1933 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Industrial activity increased rapidly in May and the early part of June, and there was an advance in the general level of commodity prices. Prices of raw materials traded in on organized exchanges showed wide fluctuations, and a general rapid upward move ment, while prices of other commodi ties as a group showed relatively little increase. Production and employment. Volume of industrial production, as measured by the Board’s seasonally adjusted in dex, increased from 67 per cent of the 1923-1925 average in April to 76 per cent in May, as compared with 60 per cent in March 1933. Operations at steel mills continued to increase in May and the early part of June, con trary to seasonal tendency, and in the week ending June 24 activity is re ported at about 50 per cent of capacity. Output of the automobile industry was larger in May than in April and, ac cording to trade reports, has increased further in June, although a decline is usual at this season. Lumber output in May showed a considerable increase from previous low levels. Activity at INDUSTRIAL PRODUCTION' Index number of industrial production, ad justed for seasonal variation. (1923-1925 aver age =100.) textile mills increased sharply to a higher level for the season than in any other month since November 1929 and output of shoe factories in May was larger than in May of any previous year. Employment in manufacturing in dustries increased considerably between the middle of April and the middle of May and the Board’s index, which is adjusted to allow for seasonal varia tions, advanced from 58 per cent of the 1923-1925 average to 61 per cent. Factory payrolls increased by a larger percentage to about 42 per cent of the 1923-1925 average. Value of construction contracts awarded during May and the first half of June as reported by the F. W. Dodge Corporation showed a nonseasonal increase from the extreme low levels prevailing earlier in the year. Distribution. Freight traffic increased from April to May by more than the seasonal amount reflecting chiefly larger shipments of miscellaneous freight and merchandise. Department store sales which had increased sub stantially from March to April showed little change in May. CONSTRUCTION CONTRACTS AWARDED WHOLESALE PRICES Indexes based on three month moving aver ages of F. W. Dodge data for 37 Eastern States, adjusted for seasonal variation. (1923-1925 average —100.) Indexes of the United States Bureau of Labor Statistics (1926 = 100). Wholesale prices. Wholesale com modity prices, as measured by the weekly index of the Bureau of Labor Statistics, advanced from 60.3 per cent of the 1926 average in the week end ing April 15 to 64.5 per cent in the week ending June 17. This increase reflected a rapid rise in the prices of commodities traded in on organized exchanges, including wheat, cotton, wools, hides, lard, sugar, silk, rubber and nonferrous metals, and also in the prices of flour, textiles, and leather; while prices of petroleum were re- 4-K mployment Pai/rollsV f/N'-X —V, N "7----------v*--------19S0 1931 Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average = 100.) Page One duced and most other prices showed relatively little change. Foreign exchange. The value of the dollar in the exchange market declined by 18 per cent between the middle of April and June 21. On the latter date the noon buying rate on cable trans fers for the French franc was 4.81 cents, as compared with a gold par of 3.92 cents, and the English pound was quoted at $4.16, as compared with a rate of $3.41 on April 12. Bank credit. A return flow of $156, 000,000 of currency from circulation and purchase of $118,000,000 of United States Government securities by the reserve banks placed a consider able volume of reserve funds at the posits at the reporting banks increased by over $500,000,000 reflecting in part a further growth of bankers’ balances, principally in New York City. Money rates in the open market con tinued to decline during the period and in the middle of June were only slightly above the lowest levels of re cent years. On May 26 the discount rate of the Federal Reserve Bank of New York was reduced from 3 to 2p2 per cent and in the following three weeks rates were lowered from 3j4 to 3 per cent at the Federal Reserve Banks of Chi cago, Boston, San Francisco, Phila delphia, St. Louis and Cleveland. At the other reserve banks a rate of 3 per cent prevails. disposal of member banks during the five weeks ending June 21. These funds were used in part to reduce further the member banks’ indebted ness to the reserve banks and the re serve banks’ holdings of acceptances, and in part were added to the mem ber banks’ reserve accounts. Loans and investments of member banks in 90 leading cities increased by $175,000,000 in the four weeks end ing June 14, representing chiefly a growth of security loans and other loans at New York City banks. Loans to brokers and dealers in securities made by New York City banks in creased by $160,000,000 during the period, while security loans to other customers declined. Net demand de Business and Banking Conditions in the Philadelphia Federal Reserve District Business continues active and com modity prices have risen steadily, sur passing those of last year. Industrial operations show large additional in creases, so that the current level is substantially higher than the record low point reached in March. Output of manufactures in May registered fur ther exceptional gains which were more than well sustained in June; the total May volume exceeded that of last year for the first time in many months. Production of bituminous coal in creased, while that of anthracite de creased from April to May, but in June both showed an upward tendency. While the volume of construction con tinues at very low levels with respect to other years, there has been a con siderable increase during May and early June both in contract awards and in building operations generally. Freight car loadings and wholesale trade have shown considerable in creases ; while sales at retail decreased in May from the unusually high vol ume of April, some improvement has occurred in June. Collections gener ally showed additional increases dur ing May. Commercial failures de clined sharply and for the year to date were appreciably smaller than last year both in number and in the amount of liabilities. Industrial employment and payrolls have shown marked increases. In Pennsylvania, industrial employment since March has risen nearly 5 per cent and payrolls over 7 per cent, according to our indexes comprising twelve man ufacturing and non-manufacturing industries and services. The largest Demand for manu factured products in this district has been exceptionally active for this time of the year. Sales generally have shown additional gains, so that the volume sold by many important lines since early April has exceeded that of last year. The majority of reports show that unfilled orders have been steadily on the increase, and about the middle of June they were on the whole appreciably larger than a year ago. Wholesale prices of manufactures have increased sharply in this district as in the country in the past three Manufacturing. FREIGHT CAR LOADINGS INDUSTRIAL PRODUCTION ALLEGHENY DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT TOTAL gains in the month occurred in manu facturing, quarrying, and non-metallic mining, while the largest decreases took place in anthracite mining and in public utilities. MERCHANDISE AND / MISCELLANEOUS MANUFACTURING TOTAL COAL MINING ADJUSTED TOR SEASONAL VARIATION 1928 1929 1930 ADJUSTED FO^ SEASONAL VARIATION 1931 1932 1933 1928 1929 1930 1931 Source: American Railway Association Page Two 1932 1933 months, and they continue strong, sur passing last year’s levels in most in stances. The extent of price increases, however, shows considerable variation not only as between individual com modities but also as between the major groups of commodities. Since the third week of April, when this coun try declared an embargo on gold, the most pronounced increases occurred in quotations for farm products, foods, hides and leather, and textile prod ucts. Prices of these commodities as well as those of building materials and chemicals and drugs in the third week of June were also appreciably higher than a year ago, while quotations for metal products, house furnishing and miscellaneous goods were lower than last year, although the spread is grow ing narrower, owing to advances in the past two months. Stocks of finished goods at local fac tories, which have been diminishing steadily in the past three years, do not show any signs of accumulation; on the contrary, there has been a further reduction since April, so that the ma jority of plants report smaller volumes than a month and a year ago. In the case of raw materials, current pur chases by local manufacturers have in creased, reflecting partly advance in prices and partly more active demand for factory products. Compared with a year ago, inventories of raw mate rials still appear to be smaller in most instances. Factory employment in this district showed further gains of over 5 per cent and payrolls more than 12 per cent from April to May. These gains were unusual since ordinarily begin ning with April factory operations reflect gradual seasonal recessions. Working time, as measured by the number of employe-hours worked in Pennsylvania during May, increased almost 16 per cent over April, all manufacturing groups sharing in this exceptional upturn. Since March, when productive activity reached the lowest level in the past eleven years, employment in Pennsylvania has risen almost 7 per cent and payrolls 19 per cent. It is estimated on the basis of these changes that the number of wage earners in Pennsylvania factories in the two months following the bank ing crisis was increased by almost 37.000 so that in May approximately 596.000 factory wage earners were em ployed, drawing an average weekly payroll of over $8,900,000 or about Business Indicators Philadelphia Federal Reserve District Index numbers expressed in percentages of 1923-1925 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. Unadjusted indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Adjusted for seasonal variation Not adjusted Percentage comparison May 1932 April 1933 May 1933 with May 1933 Month ago Year ago 5 months May 1932 1933 with 5 months 1932 April 1933 May 1933 Industrial production: output of factories and coal mines. . Manufacturing—total................. Metal products......................... Textile products....................... Transportation equipment. .. Food products........................... Tobacco and products............ Building materials...................... Chemicals and related products Leather and products............. Paper and printing.................. Electric power output............. Elec. pwr. used by industries. Coal mining. . Anthracite.. Bituminous. 55.0 55.5r 33.2r 52.8 50. lr 71. 8r 79.3 25.Or 91.1 96.0 82.9r 178.2 116.0 49.2 49.0 50.4 56.7 62.3p + 9.9 57.8 63.9p + 10.6 30.6 35.4 + 15.7 76.6 85. Op + 11.0 25.6 + 6.2 24.1 66.9 68.4p + 2.2 80.8 87.5 + 8.3 25.4 +26.4 20.1 85.3 92. Ip + 8.0 109.2 128.Op + 17.2 77.9 80.8 + 3.7 169.7 183.8 + 8.3 0.0 112.7 112.7 45.1 43.0 57.4 44.8 44.0 49.3 + 0.7 - 2.3 + 16.4 Factory employment—Penna Factory wage payments—Penna. + 13.3 - 9.9 54.1 + 15.1 - 9.7 54.6r + 6.6 -26.9 32.8r +61.0 + 9.4 50.9 -48.9 -48.0 52.Or - 4.7 - 8.5 71.6r + 10.3 - 0.7 77.1 + 1.6 "-39.5 26.Or + 1.1 - 6.0 92.6 +33.3 + 5.9 87.3 - 2.5 -11.6 83.6r + 3.1 - 8.4 165.7 - 2.8 - 9.7 118.3 - 8.3 -12.2 + 13.9 -11.7 -13.0 - 1.7 48.5 49.0 45.4 55.4 61 Op 56.3 62.5p 29.7 35.2 72.8 81.4p 25.5 26.9 66.9 68.7p 73.7 85.0 20.0 26.7 86.2 93.5p 107.8 116.5p 79.4 81.5 166.3 170.9 113.8 115.0 44.2 43.0 51.7 45.0 45.0 44.9 + 5.4* - 6.0* -14.5* 61.8 + 13.0* - 6.6* -28.1* 38.1 58.1 55.1 31,5r 35.6 Building and real estate Contracts awardedf—total......... Contracts awardedf—residential Permits for building....................... Mortgages recorded in Phila. . . . Real estate deeds recorded in Philadelphia............................ Exclusive of Sheriff deeds (1930=100)............................. Sheriff deeds (1930 = 100)......... Writs for Sheriff sales in Phila. .. 32.6 16.7 6.7 22.8 12.1 8.4 4.1 9.8 13.2 9.3 7.5 14.0 + 9.1 + 10.7 +82.9 +42.9 -59.5 -44.3 + 11.9 -38.6 -42.1 -55.3 -45.1 -52.4 39.8 21 .4 7.4 21.2 14.1 10.2 5.8 10.3 16.1 11.9 8.3 13.0 60.3 59.8 48.7 -18.6 -19.2 -19.8 65.1 59.2 52.6 1003.5 572.1 0.0* -23.8* -13.1* 78.5 59.8 59.8 -18.6* +31.7* + 3.7* 130.4 210.9 171.7 1225.9 + 114.3 +22.2 + i.i 1053.7 600.7 1287.2 Distribution Retail trade—sales......................... Retail trade—stocks...................... Wholesale trade—sales................. Wholesale trade—stocks.............. Freight car loadings (Allegheny district) ......................................... Life insurance sales........................ New passenger auto registrations 64.8 65.7 63.2 67.6 62.1 52.4r 58.1 56.3 59.8p 54. Op 68.3 57.9 - 3.7 + 3.1 + 17.6 + 2.8 - 7.7 -17.8 + 8.1 -14.3 -19.6 48.9 98.1 50.5 46.8 89.2 43.7 47.9 89.6 52.1 + 2A + 0.4 + 19.2 - 2.0 - 8.7 + 3.2 -16.3 50.9 -16.3 105.0 -13.8 72.7 - 7.1 65.2 65.3 60.3 66.5 66.7r 54.0 54.2 56.4 60. Ip 53.7p 64.2 57.0 45.4 49.8 95.9 75.0 99.9 66.0 Business liquidations Number............................................. Amount of liabilities...................... -26.3* -15.6* -22.3* 142.5 163.2 120.3 -44 .0* -46.3* -46 .6* 243.0 233.0 130.6 Payment of accounts Check payments............................. Rate of collections (actual, not indexes) Retail trade............................... Wholesale trade.......................... 62.0 55.6 52.4 - 5.8 -15.5 -14.9 56.2 26.3 56.9 + 2.0* - 1.5* + 8.3* + 5.4* 61.4 25.4 55.4 25.9 60.0 Per cent change from (000,000’s omitted in dollar figures) May 1932 Feb. 1933 Mar. 1933 Apr. 1933 May 1933 Month ago Year ago Banking and credit All member banks—net de$1,962 $1,963 $1,845 $1,874 $1,883 + 0.5 - 4.0 Bankers* acceptances outstand ing ................................................ 14.1 10.4 10.4 9.9 10.0 + 1.0 -29.1 Federal Reserve Bank Bills discounted........................ Other bills and securities .... 63 112 54 142 131 140 56 144 46 141 -17.9 - 2.1 -27.0 +25.9 * Computed from data unadjusted for seasonal variation. t 3-month moving daily average. p—Preliminary, r—Revised. Page Three IRON AND STEEL PRODUCTION EMPLOYMENT, PAYROLLS AND WORKING TIME PHILADELPHIA FEDERAL RESERVE DISTRICT PENNSYLVANIA PERCENT PERCENT EMPLOYMENT EMPLOYE HOURS PIG IRON PAYROLLS 1928 1929 1930 1931 $1,400,000 a week more than in March. Factory production showed an ex traordinary increase for two successive months. This bank’s index of output of manufactures, which takes into ac count the number of working days and seasonal changes, rose to 62.3 per cent of the 1923-25 average as com pared with 57 in April and 55 in May last year. Compared with a record low level in March this year, the vol ume of factory output increased about 19 per cent and in the country the gain amounted close to 25 per cent. Production in the first five months, however, was roughly 10 per cent smaller than in the same period last year. In early June, productive activ ity continued the upward movement. Exceptionally large additional in creases in output occurred in most of the manufacturing groups, the sharp est percentage gains taking place in the fabrication of metal products, and in the manufacture of textile and to bacco products, building materials, and radio and musical instruments. All groups except those comprising trans portation equipment, foods, and paper and printing showed noticeable gains over a year ago, so that the index num ber measuring production of eleven important groups combined was 15 per cent higher in May this year than last and, barring September, was the highest of anv month since February 1932. The continuance of unusual gains during May was widespread with re spect to individual industries. Of the thirty-one important manufacturing lines shown in the table on the last page, only two registered decreases, while the majority of the others had increases despite the fact that ordina rily they record seasonal decreases. Digitized Compared with a year ago indexes for for FRASER http://fraser.stlouisfed.org/ Page Four Federal Reserve Bank of St. Louis 1932 1933 1928 1929 1930 1931 1932 1933 Source: Iron Age twenty individual lines were higher, while in eleven cases they were lower. Several lines, manufacturing such products as silk and wool goods, ho siery, underwear, and shoes, reported larger volumes of output in the first five months this year than last. Industrial consumption of coal, gas, oil, and coke for fuel purposes showed marked increases from April to May. The use of electrical energy also in creased by about the usual estimated percentage, when computed on the basis of working days. The output of electric power in this district showed a gain of almost 3 per cent, which was contrary to the normal seasonal tend ency. The decline in the sale of elec tricity for lighting purposes and for power to municipalities, street cars and railroads was not entirely offset by the increased consumption by industry and miscellaneous users combined, so that actual sales for all purposes were nearly 2 per cent smaller in May than April; but compared with a year ago they were over 2 per cent larger. Coal. Production of- anthracite de creased somewhat more than season ally from April to May, but showed a substantial increase in the first three weeks of June. Output of collieries was the smallest of any month since June 1932. Comparative figures cov ering the five month period since January 1 showed that production was 13 per cent smaller this year than last. Shipments of hard coal continued to decline during May and were the smallest for that month in the past five years. During the last three months the trend of anthracite prices has been more sharply downward than at any time in the three preceding years; from February to May average prices at wholesale decreased 11 per cent and in May were 8 per cent lower than a year ago. Output of bituminous coal in Penn sylvania increased substantially be tween April and May instead of de clining as is usual in this period. In early June the weekly production of mines increased further. Shipments of soft coal increased sharply in May, exceeding those of a year ago, and showed the largest gain for that month since 1929, reflecting a marked increase in demand for industrial fuel. Wholesale prices of bituminous coal in the country increased fractionally from the middle of April to the middle of May, following an almost continu ous decline for a year and a half. Building and real estate. Activity in the construction and contracting in dustry as a whole increased substan tially in Pennsylvania from April to May. Reports from some 1,300 con tractors showed gains in employment, payrolls and working time amounting to 18, 11, and 16 per cent, respectively. Aggregate awards of building con tracts increased somewhat more than seasonally from April to May and showed an exceptionally sharp gain in early June. Residential awards also increased in May instead of de clining, as is usual in that month, and were the largest since November of last year; in the first fortnight of June they showed a further substantial gain over the average of the preceding month. Contrary to seasonal expectation, the estimated dollar volume of permits issued in 17 cities of this district for new construction, repairs and altera tions increased sharply in May in addi tion to a large gain in April; it also exceeded that of a year ago by nearly 12 per cent. Comparative figures for TEXTILE FIBERS MILLIONS OF LBS 300 UNITED STATES 1 MILL TAKINGS 1 | , / PRICE 200 cotton'""'— 100 60 50 — rs __ _ ' FOOD PRODUCTS PERCENT WHOLESALE FOOD PRICES .10 120 MILL TAKINGS J\ \ , DOLLARS PER. lb: 20 1.00 80 40 30 -----. 20 V WOOL 8 t\f 6 « 1 _ / PRICE 2 » MILL TAKINGS 4 VA V vV **.»••*. V..* SILK 1928 OUTPUT - PHILADELPHIA 60 PRICE 1929 1930 1931 1932 AO 20 8.00 6.00 4.00 2.00 0 1933 Sources: Department of Commerce, Fairchild's Publications, Dun's Review the year to date, however, which show a decrease of 45 per cent from a year ago, reflect unusual curtailment in the volume of building operations in gen eral, especially in the first quarter of this year. Although the real estate situation as a whole has shown little actual im provement, inquiries concerning house and apartment rentals have become in creasingly numerous in recent weeks. Demand for houses of the type usually occupied by industrial workers has been somewhat more active since early June, reflecting at least in part the improvement in the general business situation. Foreclosures continue exceptionally numerous and in May were nearly one-third larger than those of a year earlier. Writs for sheriff sales in June numbered 2,208, the largest of any month since September of last year. Ordinary conveyances in Phila delphia averaged about the same in May as in April, but were nearly 24 per cent smaller than a year ago. Agriculture. Farm activity on the whole has been favored by good weather so that plowing and cultiva tion generally as well as harvesting of such early crops as hay have been fairly satisfactory. The demand for farm products has improved and prices have continued to advance. Of the most important current cash income groups of farm products in this sec tion, milk and butter show increases in prices paid to farmers, while eggs have been subject to the usual seasonal fluctuations downward. The condition of field and garden crops on June 1 was somewhat higher than a month earlier. Fruit prospects have changed little in recent weeks and preliminary estimates now indi 1928 1929 1930 1931 1932 1933 Source: U. S. Bureau of Labor Statistics cate a somewhat smaller crop this year than last. Dairy cattle generally are said to be in good condition; recent trends in dairy herds have been toward higher quality rather than an increase in the number of cows. Although receipts of milk and cream in the Philadelphia area increased more than seasonally from April to May, they were in sub stantially smaller volume as compared with recent years. Production of creamery butter in Pennsylvania, which was in relatively small volume during the first four months of this year, increased sharply in May and was the largest for that month in the past two years, exceeding last year’s output by nearly 10 per cent. During the last three months the trend of cold storage holdings in this section has been more sharply down ward than in the corresponding period of 1932; on June 1 this year, total stocks of dairy and poultry products were about 8 per cent smaller than a year ago. Distribution. Activity in the distrib utive channels, as in the case of pro duction, has been decidedly upward since the low levels reached in March. Freight car loadings have shown un usual gains in the past two months, and in the case of coke, ore, lumber products, and miscellaneous commodi ties, the volume exceeded that of a year ago. The movement of coal and merchandise freight, two important classifications in this section, increased sharply during May and as compared with earlier months this year. The relative increase in the movement of merchandise and miscellaneous goods since March has been much more pro nounced than in the loadings of total freight. Deliveries by motor freight also have increased further as evi denced by additional gains in employ ment, payrolls and operating time of a number of leading transportation companies. Large additional gains during May occurred in all lines of wholesaling and jobbing. Sales of eight leading wholesale branches combined showed a further increase of 18 per cent, as measured by our indexes which make allowance for the usual seasonal vari ation. Many lines indicate continued gains in June. The fact that total sales were almost 7 per cent larger than a year ago was due solely to in creases in the demand for electrical supplies, groceries, and paper. In the first five months this year, total sales were 7 per cent smaller than in the same period last year, although busi ness in groceries and electrical sup plies was somewhat larger. There have been further advances in prices of wholesale commodities both locally and nationally. Retail business in June has been fairly active, the dollar volume of sales approaching that of last year. In May, sales of department, apparel, shoe and credit stores combined showed a drop of about 10 per cent from April, which had registered an exceptionally large increase over a low point reached in March. Total dollar sales were only 8 per cent be hind those of May 1932, business in women’s apparel alone exceeding last year’s volume. This decline reflected partly lower prices, since Fairchild’s index showed that quotations for gen eral merchandise sold by department stores were 8 per cent lower on June 1 this year than last. Sales for the year to date were about 20 per cent smaller than in the first five months of 1932. Stocks of merchandise at retail Page Five RESERVE BANK CREDIT AND THE FACTORS WHICH AFFECT IT Philadelphia Federal Reserve District May 18 to June 21 inclusive (In millions of dollars) Sources of funds Uses of funds Reserve bank credit extended in this reserve district............................................................... —9.0 Commercial and financial transactions (chiefly interdistrict)..................................... —1.2 Treasury operations........................................... +3.4 Total.............................................................. -6.8 Demand for currency........................................ Member bank reserve deposits....................... Special and “Other” deposits at reserve bank................ Unexpended capital funds of reserve bank —8.8 +0.9 +1.0 +0.1 Total.............................................................. -6.8 Note: This table gives, in balance sheet form, a summary of the banking changes which have had an influence on the amount of reserve bank credit in use in this district. “ Unexpended capital funds” measure the extent to which the paying in of capital to the reserve banks and their subsequent earnings have taken funds out of the market. Payments of premiums on new life insurance taken out in May did not de crease as much as they usually do from April, so that the sharp gain in April has been more than well maintained. For the year to date, insurance sales were 16 per cent smaller than in the same period last year. Banking conditions. During the past month borrowings from the reserve bank have declined steadily to the lowest point since September 1931. Member banks report a drop in se curity loans, but other loans and dis counts show a small increase. The decrease in reserve bank credit extended locally aggregated 9 millions in the five weeks ended June 21, of which 8 millions was in bills discounted. Further evidence of greater ease Is shown by the addition of 2 millions to member bank reserve deposits and special deposits of member and non member banks M the reserve bank. These changes, in the face of a small unfavorable balance in the settlement of commercial and financial transac tions with other districts, reflected ad ditional funds made available at the re serve bank through a 3 million excess of Treasury disbursements over re ceipts within the district and the re turn of 9 millions of currency from circulation. A small excess of currency receipts SALES OF NEW PASSENGER AUTOMOBILES from banks over PERCENT payments to them is usual at this time, but the UNITED STATES amount this year was more than double that in the same periods of any of the three preceding years. Bills discounted declined from 45 l 2 millions on / PHILADELPHIA FEDERAL RESERVE May 17 to 37y2 I DISTRICT millions on June 21, which was 30 1930 1929 millions less than a year ago. There Sources: R. L. Polk Company, Pennsylvania Motor List Company stores declined less than usual from April to May, and inventories at wholesale establishments showed an in crease instead of the usual decline. In both mercantile branches inventories continued appreciably smaller than in several years, reflecting largely lower prices. The rate of stock turnover since January increased 5 per cent in wholesale and about 1 per cent in re tail trade as compared with last year. Retail collections increased 2 per cent in the month, but this increase does not seem to be up to the usual rate, owing probably to an exceptionally large gain in the previous month. Payments of accounts at wholesale were at a con siderably more rapid rate than in April, the increase in the month being 8 per cent. Compared with a year ago, retail collections were nearly 2 per cent smaller, while those at wholesale were 5 per cent larger. Sales of new passenger automobiles, as measured by registrations in this district, showed exceptionally large gains for two successive months, so that the April-May sales this year were larger than those last year. In the first five months, there were sold in this district 34,304 new cars of all makes as compared with 37,906 units sold in the same period last year. Page Six was a small decline in the bank’s hold ings of purchased bills, but United States securities increased nearly 5 mil lions owing to participation in pur chases by the federal reserve system. The ratio of gold reserves and other cash to the federal reserve note and de posit liabilities rose from 62 to 62.9 per cent. Reporting member banks* (000,000’s omitted) June 21, May 17, June 22, 1933 1932 1933 Loans to customers: On stocks and bonds $ All other.................... Loans to open market. United States securities Other securities............ 259 254 6 250 247 Total loans and investments......... *1,016 Net demand deposits.. 587 Time deposits............... 264 Government deposits . 59 Amounts due from banks.......................... 132 Amounts due to banks . 163 $269 252 6 219 247 $ 314 303 7 195 265 $993 604 261 12 $1,084 618 258 35 97 156 100 173 * Owing to revisions in the reporting system, these figures are not comparable with those pub lished prior to the last issue. Loans to customers on the security of stocks and bonds declined 10 mil lions at the reporting member banks during the past five weeks, but other loans to customers, which are more closely representative of loans for commercial purposes, show a small in crease. These banks were allotted a large amount of United States securi ties of the issues of June 15, but the expansion in government security holdings was of smaller size, giving evidence that some of them had been sold. Amounts due from banks have increased 35 millions in the five-week period, much exceeding the rise of 7 millions in due to banks; these changes no doubt explain in part a decline of 17 millions in “net” demand deposits and suggest that checking accounts probably have increased in this period. Changes in— Federal Reserve Philadelphia (Dollar figures in millions) 21, 1933 Bills discounted.... $ 37.5 Bills bought............... 0.8 United States secu rities ............... 142.0 Other securities........ 0.5 Total bills and se curities ............... Federal reserve note circulation......... Federal reserve bank note circulation Member bank re serve deposits. . Special deposits— member and non-member banks.................. Government deposits Foreign bank de posits .................. Gold reserves and other cash......... Ratio........................... Five weeks One year — $8.1 - 0.9 -$29.9 - 4.6 + 4.9 0 + 10.6 - 1.1 $180.8 -S4.1 -$25.0 239.0 - 8.3 - 8.7 5.5 0 + 5.5 116.4 + 0.9 + 0.7 9.6 6.0 + 1.0 + 4.6 + - 9.6 2.1 1.0 - 1.4 - 0.8 + 27.5 234.2 4- l.o 62.9% + 0.9% + 7.5% FEDERAL RESERVE BANK OF PHILADELPHIA Employment May 1933 MILLIONS Employment and payrolls in Pennsylvania Per cent change since May* index May 1932 MEMBER BANK’S — RESERVE DEPOSITS Payrolls May 1933 Per cent change since May* index Apr. 1933 May 1932 Apr. 1933 Manufacturing: 51 industries 58.1 - 6.0 + 5.4 35.6 - 6.6 +13.0 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 . 48.1 35.9 44.1 55.3 64.9 75.7 65.6 47.3 50.3 61.1 29.9 52.4 53.1 - 9.6 - 1.4 - 7.5 + 13.1 -13.5 + 4.0 - 2.7 - 9.0 -15.3 -16.2 -15.8 -12.8 - 3.3 + 4.6 + 2.9 + 6.3 - 3.5 + 3.3 - 0.3 - 2.4 + 5.1 + 1.4 + 5.2 -21.1 + 1.2 + 1.0 26.8 16.5 25.4 36.2 26.2 50.3 34.4 18.5 24.9 35.9 15.9 28.4 31.7 - 3.9 - 5.7 + 7.6 +28.8 -29.0 + 10.1 -18.5 -13.6 -25.0 -15.9 -13.6 -13.9 + 3.6 + 13.1 +13.0 +17.1 - 1.1 + 1.2 + 17.2 + 9.6 + 13.5 +15.8 + 8.1 -29.6 + 12.7 + 13.2 Transportation equipment.. . Automobiles............................ Auto, bodies and parts........ Locomotives and cars.......... 29.3p 27.7 45.5 13.7 -42.9 - 6.7-14.3 -36.9 + 93 + 1.1 +29.3 + 1.5 15.6p 10.5 32.3 5.6 -53.0 - 7.9 + 3.5 -59.1 32.3 -36.0 - 3.3 36.4 -51.9 + 18.2 + 7.1 +59.1 + 5.7 + 7.1 - 1.1 79.6 59.6 59.1 84.7 58.1 44.6 54.2 100.4 90.2 80.9 113.1 104.4 + 8.2 +31.3 +24.2 +23.6 -29.3 -18.6 - 6.6 - 0.3 +10.9 +10.2 - 7.7 + 4.2 + 6.4 + 2.2 +21.9 + 10.7 + 1.6 + 6.4 + 0.2 + 1.2 + 13.5 + 0.1 + 1.0 - 0.3 53.2 44.7 39.0 58.0 44.9 23.9 35.9 71.7 64.2 60.7 79.0 56.6 +18.0 +54.1 +44.4 + 18.9 -27.6 -32.5 +18.1 +24.9 +21.6 +24.4 -19.4 + 2.9 + 14.2 + 14.3 +32.7 +20.8 + 4.4 + 13.3 + 7.2 + 6.7 +43.0 + 8.8 + 17.7 -13.5 - 50 Foods and Tobacco.................. 90.7 Bread and bakery products. 94.7 Confectionery-........................ 82.6 Ice cream................................. 74.5 Meat packing......................... 92.7 Cigars and tobacco............... 89.9 - 1.0 - 4.2 - 1.0 -19.9 - 0.1 + 2.6 +13.1 + 0.9 + 0.1 + 6.4 - 1 .2 +32.2 70.3 74.9 64.9 58.6 64.1 68.9 - 7.0 -11.8 - 5.1 -28.0 -16.2 + 8.2 + 18.8 + 2.5 +12.3 + 10.8 + 3.1 +53.1 -100 Stone, clay and glass products Brick, tile and pottery......... Cement..................................... Glass......................................... 50.7 47.8 44.8 69.4 + 12.2 - 7.5 +24.1 +23.0 + 8.6 + 2.6 + 17.0 + 4.4 25.2 21.8 19.8 48.7 +11.5 + 1.9 + 7.6 +27.2 +30.6 +24.6 +46.7 + 17.3 Lumber products....................... Lumber and planing mills. . Furniture................................. Wooden boxes........................ 37.5 18.2 43.0 53.5 -10.1 -42.0 + 9.7 - 7.0 + 3.0 + 11.0 + 4.6 - 3.1 22.1 10.6 24.4 34.7 - 16.3 -55.1 + 7.5 - 5.2 + 13.9 +34.2 + 8.4 + 14.9 Chemical products.................... 78.9 Chemicals and drugs........... 54.9 Coke......................................... 44.2 Explosives............................... 62.1 Paints and varnishes. . . 100.8 Petroleum refining................ 124.8 + 1-4 - 6.9 -27.7 - 7.9 + 17.2 + 13.2 + + + 1.0 2.7 6.9 0.5 9.0 3.1 62.0 39.9 18.8 40.7 76.2 110.3 - 3.9 -16.2 -27.7 -22.5 + 4.0 + 5.2 + 44 + 1.8 + 9.9 + 7.4 +29.6 + 1.9 Leather and rubber products . 93.7 Leather tanning.................... 92.0 Shoes.................................... 110.6 Leather products, other. . . . 71.0 Rubber tires and goods.... 84.7 + + + + + 5.2 3.1 9.2 7.0 6.9 + + + + 3.0 4.9 0.5 4.6 4.6 67.9 62.2 77.9 60.4 94.5 + 6.3 - 3.1 + 16.8 +25.1 +23.5 +14.7 +15.6 - 2.3 + 14.8 +61.5 Paper and printing.................... Paper and wood pulp........... Paper boxes and bags.......... Printing and publishing. . . . 80.5 72.9 59.7 85.6 - 5.0 2.5 5.4 6.1 + + + + 1 4 4.1 2.2 0.1 60.4 47.5 51.8 66.2 -15.4 -14.6 -14.9 -16.3 + 2.5 + 9.7 +14.1 - 0.3 Anthracite mining................... Bituminous coal mining.......... Banking, insurance and real estate........................................ Canning and preserving.......... Construction and contracting Hotels.................................. Laundries.................................... Dyeing and cleaning................ Crude petroleum....................... Public utilities............................ Quarrying and mining............. Retail trade................................. Wholesale trade........................ 42.0 -35.5 -16.4 - 2 0 25.2 -48.1 -19.7 BILLS DISCOUNTED 1932 1933 CURRENCY DEMAND PHILADELPHIA FEDERAL RESERVE DISTRICT Shipbuilding........................... MILLIONS 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.......... 1930 1931 1932 1933 Percentage change—May 1933 from May 1932 City areas* Manufacturing Employ ment Allentown............... Altoona.................... Harrisburg.............. Johnstown............... Lancaster................ Philadelphia........... Reading................... Scranton.................. Trenton................... Wilkes-Barre.......... Williamsport.......... Wilmington............ Wage payments - 1.2 -12.3 -13.7 -24.6 - 2.6 - 2.0 -10.8 +22.4 - 3.4 + 10.2 - 5.6 - 5.4 + 12.0 + 0.6 -32.7 — 11.7 +38.4 -11.9 - 4.2 - 6.4 +28.8 - 3.7 + 5.6 -18.0 - 5.4 + 3.8 Building permits (value) Debits +105.8 - 62.7 - 7.4 - 18.1 - 67.9 + 44.7 + 74.4 - 65.1 + 45.5 + 53.5 - 83.8 - 41.1 + 35.6 -17.3 -33.3 + 0.5 -46.0 -22.6 - 8.7 -27.0 -26.2 -13.8 -24.4 -37.6 - 2.4 -12 3 Retail trade sales - 3.2 + 8.2 -18.2 -11.0 - 2.7 - 8.9 + 3.8 -15.8 — 0.5 -14.4 +22.2 May 1933 from April 1933 Allentown............... Altoona................... Harrisburg.............. Johnstown.............. Lancaster................ Philadelphia........... Reading................... Scranton.................. Trenton................... Wilkes-Barre.......... Wilmington............ York......................... + 6.3 - 1.4 + 9.7 + 0.3 + 11.9 + 6.4 + 2.8 + 7.3 + 4.9 +20.1 + 3.0 + 4.9 + 6.0 +20.2 - 8.5 +20.4 +54.4 + 17.8 + 9.9 +14.8 +25.8 + 17.1 +39.4 + 14.0 +10.7 +15.6 + 84.6 - 59.9 +304.9 +150.1 +101.5 +143.9 + 20.3 - 2.4 - 72.6 + 81.9 - 72.6 - 67.6 +274.0 - 4.3 + 3.0 + 3.7 + 17.7 + 12.9 + 2.6 + 10.9 - 3.9 + 7.5 - 5.4 + 10.8 +18.1 + 3.2 * Area not restricted to the corporate limits of cities given here. -10.7 + 2.4 - 8.3 + 4.0 + 6.1 -10.0 -15.1 - 9.7 - 6.8 -22.7 - 6.2 *1923-1925 average = 100. 81.1 78.3 - 3.7 - 4.4 + 0 1 + 43 +17.7 + 29 + 12 + 29 — 2 2 - 2 0 + 16 2 0.6 - 0.1 +19.6 p—Preliminary figures. Page Seven Index numbers of individual lines of trade and manufacture RETAIL TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT Philadelphia Federal Reserve District Index numbers expressed in percentages of the 1923 -1925 average whicn 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. Unadjusted indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Not adjusted Adjusted for seasonal variation Percentage comparison May 1932 April 1933 May 1933 May 1933 with Month ago Year ago 5 months May 1932 1933 with 5 months 1932 April 1933 May 1933 65.2 63.1 54 .Or 81.7r 83.3 60.6 66.7r 62.2r 59.3 113.1 81.1 51.9 60. lp 57.6 48.6 82.6p 68.7 57.2p 65.3 58.9 62.3r 90.5r 70.5 68.0 54.0 49.2 52.2 82.1 57.8 53.2 53.7p 48.3 55.4 82. Op 56.8 52.4p Retail trade Sales Stocks of goods 64.8 64.4 58. lr 79.2r 75.0 57.7 62.1 61.5r 56.7 90.1 68.2 49.0 59.8p 58.8 52.4 80. Op 61 .9 54.5p - 3.7 - 4.4 - 7.6 -11.2 - 9.2 +11.2 - 7.7 - 8.7 - 9.8 + 1 .0 -17.5 - 5.5 65.7 59.2 62. lr 89.5r 69.1 70.1 52.4r 47.4r 49.3 77.4 56.7 53.2 54. Op 48.5 55.1 81. Ip 55.7 54. Op + 3.1 + 2.3 + 11.8 + 4.8 - 1.8 + 1.5 -19.6 -17.9 -14.0 -11.6 -21.8 -30.9 -17.8 -18.1 -11.3 - 9.4 -19.4 -23.0 Rate of stock turnover 5 months (actual, not indexes) + 0.7* 1.51 1.50 WOMEN'S APPAREL STORES Wholesale trade Sales 68.3 46.5 75.3 34.8 89.7 91.1 38.6 25.1 52.3 +17.6 +50.5 + 1.6 +10.1 +81.2 + 5.3 + 8.4 +ii.i +15.2 + 6.6 -12.1 -13.1 - 2.2 +52.3 + 8.1 -21.5 -23.0 + 1.0 67.6 56.3 57.9 100.1 103.9 100.1 41.9 34.5 33.9 53.3 77.7 47.1 81.8 67.5 75.2 58.9 65.9 59.9 53.4 47.5 43.2 71.7 62.8 60.8 + 2.8 - 3.7 - 1.7 + 13.2 + 11.4 - 1.7 - 9.1 - 3.2 58.1 30.9 74.1 31.6 49.5 86.5 35.6 22.6 45.4 Rate of stock turnover 5 months (actual, not indexes) 13.8 26.2r 27.3 24.5 51.3r 11.3 Automobile parts and bodies.... 31.1 16.6r 177.1 58.8 31.3 23.6 38.0 83.4 99.6 35.2 22.Or 20.6r 15.9 11.9 25.8 31.2 18.4 24.6 16.7 27.7 48.7 46.1 10.3 9.7 19.5 32.4 7.7 6.6 77.9 66.8 89.3 103.6 42.3 53.9 32.9 39.9 25.6 29.2 109.4 116.4p 125.5 151.9 32.0 41.7 20.5 22.7 12.8 17.1 Slaughtering, meat packing......... 93.5 98.6 92.9 72.1 23.2 23.5p 79.9 86.9 50.4 56.5 83.5 85.7 133.0 153.6 86.5 103.6p 37.4 41.6p 52.9 67.9 132.1 134.9p 55.1 49.0 95.1 67.6 29.6 78.4 88.2r 97.8 94.2 46.4 65.4 134.1 49.9 +33.6 +20.9 +33.7 +65.9 + 5.6 + 6.2 +66.2 + 16.7 -14.3 + 16.0 +27.4 +21.3 + 14.1 + 6.4 +21.0 +30.3 + 10.7 +33.6 + 4.4* + 5.5 -22.4 + 1.3 + 8.8 +12.1 + 2.6 +15.5 +19.8 +11.2 +28.4 + 2.1 + 12.4 * Computed from data unadjusted for seasonal variation. Page Eight 60.3 52.4 86.7 33.5 44.8 83.5 54.1 27.4 51.3 54.2 32.7 74.8 27.5 45.5 79.6 36.7 14.7 45.4 +15.2 +19.1 - 9.9 +13.1 - 5.1 - 8.8 + 4.2 -53.6 -62.3 +76.2 +72.2 +69.1 -23.2 +39.6 +52.5 +18.5 + 3.2 -17.0 + 2.9* + 3.7 + 6.7 -20.6 + 10.8 - 0.2 - 2.8 +57.1 + 10.0 -10.3 + 3.8 + 0.6 +10.4 64.2 46.0 75.3 32.7 68.2 90.2 42.5 21.1 51.8 66.5 56.4 57.0 101.1 104.9 101.1 41.5 34.5 33.6 73.8 46.2 50.6 77.7 67.5 71.4 67.9 63.5 60.7 57.1 45.6 46.2 71.0 62.8 60.2 + 5.3* 1.71 Output of manufactures Shoes........................ .......................... - 7.1 -23.3 — 15.3 —18.1 + 0.3 + 2.4 -31.6 —45.6 — 14.5 -14.3 0.0 -19.1 -31.4 - 8.1 -10.6 -19.1 -15.2 64.1 52.9 86.7 35.6 58.9 84.3 49.2 32.6 51.8 Stocks of goods MEN'S APPAREL STORES -20.9 -24.4 —31.5 -33.0 -27.3 -64.2 -48.7 -39.7 -46.4 + 13.6 + 6.3 -13.1 -37.2 + 9.0 +26.0 -48.2 -23.3 -38.1 - 3.5* + 0.4 - 8.0 -13.8 + 0.1 -16.3 -11.0 +12.6 - 1.4 -14.7 -16.9 - 0.6 -11.2 p—Preliminary. 14.3 27.5r 28.4 25.5 47.2r 14.2 32.7 16.3r 182.4 56.4 29.4 23.2 37.6 83.4 100.6 39.8 23.3r 19.2r 85.4r 93.7 83.1 22.5 76.0 56.6r 89. lr 89.0 85.7 46.9 69.3 134.3 51.9 1.80 13.4 27.1 19.1 17.0 40.1 12.1 21.3 7.1 79.5 87.5 38.8 34.1 25.6 109.4 123 .U 31.7 21.5 12.2 84.2 91.7 120.8 19.5 72.7 50.9 85.2 133.0 83.9 37.8 55.5 131.9 51.0 r—Revised. 16.5 32.8 25.6 28.8 44.8 13.0 34.0 7.5 68.8 99.5 50.3 39.3 28.9 116.4p 153.4 47.1 24.1 15.9 87.9 98.1 88.7 19.lp 84.3 56.5 86.6 139.8 94.3p 42. Op 72.0 134.7p 57.3
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