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'P THE BUSINESS REVIEW oJ- FEDERAL OF PHILADELPHIA6, . .. JULY 1, 1943 '** ' 9 0> WITH continued adjustments in the economy Manufacturing. The market for manufac tures in this district reflects expanding military requirements for the products of heavy indus tries and continued active demand for a wide range of nondurable merchandise for essential civilian use. With recent readjustments in pro duction schedules at certain war plants largely completed, commitments for most heavy goods are again increasing. Orders for building mate rials, however, have continued to decline as the volume of new construction was reduced. Sales of lighter products, including many textiles and leather manufactures, were fairly well main Employment in the factories of Pennsylvania tained in the past month, and in a few lines in has not changed materially in late months, but creases over a year ago were reported. Short average hours worked per employee have been ages of skilled labor and raw materials have lengthening and hourly earnings have in necessitated the acceptance of orders on an al creased. Total payrolls in May were esti lotment basis in numerous instances, as all mated to be nearly $50 million weekly, as civilian requirements cannot be met. against about $20 million just before the out break of war in Europe. In most munitions and other heavy industries operations continue near capacity. In the case Increased purchasing power, also evidenced of primary steel, however, output has receded in larger farm cash income, at a time when the somewhat from the peak rate prevailing in early supply of consumers’ durable goods is greatly May, owing to the uncertain outlook for fuel curtailed, has been reflected in more active de supplies, and the necessity of repairing open mand for other types of goods. Sales of depart hearth furnaces. Activity at establishments ment and apparel stores reporting to this Bank turning out nondurable goods to meet war and have shown substantial gains over a year ago, essential civilian requirements continues unusu but stocks of goods in many cases have declined ally high for this time of the year. considerably. The over-all level of retail prices Employment in Pennsylvania factories in in Philadelphia, measured by the cost of living, May declined slightly from the April peak, but was 27 per cent higher in May of this year than wage payments increased about one per cent. in August 1939. of the Third Federal Reserve District to the re quirements of war, the output of manufactured goods is establishing new high records. The production of coal has been reduced by recent work stoppages. Awards of building contracts have declined sharply from exceptional peaks last fall, as the Government restricts all but the most essential construction. Contracts placed in May were the smallest in this district for any month since 1935. Page One HOURLY EARNINGS AND WORKING TIME PRODUCTION AND PRICES PENNSYLVANIA FACTORIES' HOURS PERCENT CENTS PRODUCTION AVERAGE HOURLY EARNINGS \ COST OF LIVING IN PHILADELPHIA ^-WHOLESALE COMMODITY PRICES US. HOURS WORKED * ADJ. FOR SEASONAL VARIATION 193 6 1939 1940 1941 1943 1943 The number of wage earners was estimated at over 1,200,000 and the volume of payrolls at a new high of almost $50 million a week. In creases over May 1942 amounted to 4 and 24 per cent respectively. Total employee hours worked was about the same as in April but 11 per cent greater than a year ago. Over the twelve months, activity continued to show the most pronounced gains in the heavy goods lines. The weekly income of wage earners at re porting concerns in Pennsylvania rose to a new high average of $44.46 in May, from $48.90 in April and $37.43 a year ago. Average hourly earnings also increased to a new peak of 99!/2 cents, as against 89 cents in May 1942. Work ing time, averaging 45 hours a week per em ployee, was the greatest in well over a decade. At reporting factories in Delaware, employ ment increased 2 per cent and wage disburse ments 5 per cent from April to May; total em ployee hours rose 3 per cent in the month. Com pared with a year ago, the number employed increased 31 per cent, payrolls 59 per cent and working time 36 per cent. Output of factory products in this district rose slightly further from April to May and was over one-fifth larger than a year earlier. In creases in the month occurred in the case of the transportation equipment, chemical, food, leather products, and paper industries. In the five months ended May, the production of dur able goods showed a gain of 37 per cent over 1942, as against an increase of only one per cent in the output of lighter products. Page Two 1938 1940 194 I 1942 1943 Coal and other fuels. A continued high rate of industrial activity and expanding military re quirements have resulted in an exceptionally strong demand for all fuels. Reserves of an thracite and bituminous coal in this district, as elsewhere, have been reduced by several sus pensions of mining operations in the past two months. Stocks of petroleum products in At lantic Seaboard states continue low. * Production of anthracite declined 4 per cent in May to 5,200,000 tons, but continued above a year ago, when the mines were operating only five days a week. Operations were suspended once in May and twice during the first three weeks of June. Production in the five months ended in May increased 6 per cent over the same period last year, but estimated require ments for 1943 call for an increase in tonnage of about 8 per cent. The output of bituminous coal in Pennsylvania increased somewhat in May, although operations in these mines also were interrupted at the beginning of the month. Production was 4 per cent below 1942, and slightly less in the first five months this year than last. Reduced output over part of June reflected further labor difficulties. Building. Government restrictions on con struction projects not vital to the war effort are reflected in a lower level of building activity than prevailed in this district during the spring and early summer of 1942. At that time, the shortage of labor was less acute, and appreci able quantities of steel and other critical items were being diverted to essential construction. * METAL AND TEXTILE ACTIVITY FUEL AND POWER EMPLOYEE-HOURS IN PENNSYLVANIA THIRD FEDERAL RESERVE DISTRICT PERCENT PERCENT ADJUSTED FOR SEASONAL VARIATION IRON AND STEEL PRODUCTS. ELECTRIC POWER USED BY INDUSTRIES BITUMINOUS COAL OUTPUT NON-FERROUS METALS TEXTILES' 1937 1938 1939 OUTPUT 1940 1941 . 1942 1943 Factory building was rising steeply toward a war-time peak, military installations of vari ous types were under construction, and opera tions on housing projects were being pushed to meet the needs of a great number of war work ers moving into centers of munitions production. The value of contracts awarded has declined sharply in recent months from the thirteen-year high reached late last year. Placements in May, totaling $8 million, dropped more than 50 per cent from April, and were 66 per cent less than a year ago. Residential building contracts were reduced by nearly one-third in the month and awards for nonresidential structures about three-fourths. Declines from May 1942 ranged from 56 per cent for factories to 90 per cent for commercial buildings, which include ware houses and similar facilities. In the first five months of 1943 contract awards aggregating $88 million were 36 per cent smaller than in the same period last year, with small dwellings and factories showing the largest declines. Agriculture. Growing conditions in this dis trict improved considerably during June, and the outlook for most crops is more favorable than earlier this season. Farm work progressed satisfactorily wherever adequate supplies of labor were available, but operations still are behind schedule, owing to an unusually late start and the large amount of replanting occa sioned by excessive rains in May. Higher temperatures and moderate rainfall have stimulated the growth of truck crops, hay, and pastures, and the winter grains are matur 1937 1938 1939 1940 1941 1943 ing rapidly. Conditions have been favorable for planting tobacco in the principal growing region of Pennsylvania and the early outlook for the crop is satisfactory. The production of orchard fruits is expected to be smaller than in 1942; some winter killing and frost damage has been reported, and prolonged wet weather this spring interrupted spray schedules, per mitting a considerable amount of disease and insect damage. The market for virtually all agricultural com modities has continued to strengthen. Prices received by farmers have risen, and farm cash income has increased more sharply than in the early months of last year. Receipts from the sale of farm products in Pennsylvania, New Jersey, and Delaware exceeded $200 million in the four months ended April, an increase of 23 per cent over 1942, and the largest for the period in over a decade. Income from livestock products sold showed the most pronounced rise in the year, according to the Department of Agriculture. Trade. Retail sales at reporting stores in this district continue larger than in 1942, reflecting the higher purchasing power of consumers re sulting from increases in payrolls and farm cash income. There is less evidence at present of large purchases in anticipation of shortages, such as prevailed for a time in the winter when sales of clothing were abnormally high. With supplies of consumers’ durable goods low, the demand has been concentrated in wearing ap parel and a wide range of other soft goods items. The principal exception to this trend is DEPARTMENT STORE SALES AND STOCKS BUILDING CONTRACTS THIRD FEDERAL RESERVE DISTRICT THIRD FEDERAL RESERVE DISTRICT PERCENT MILLIONS 5T0CRS TOTAL —I— SALES L* V 493 8 1940 1941 1943 1938 1939 1940 1941 1943 /-t«: f.w. Oo^jt Co--p. in sales of leather footwear, which have been reduced from the 1942 level through rationing. Department store sales in this district in May were 9 per cent larger than a year ago. More pronounced increases were shown by establish ments specializing in women’s and men’s ap parel, while sales by shoe stores declined 20 per cent. In the five months ended May, de partment and women’s apparel stores reported increases over 1942 of 6 and 22 per cent re spectively, but sales by men’s apparel and shoe stores decreased somewhat. Inventories at department stores increased slightly from April to May but were sharply smaller than a year ago. Outstanding commit ments for merchandise have risen steeply since the turn of the year, as merchants attempt to maintain inventories. At the close of May these orders were nearly double the dollar vol ume of a year earlier. Collections during May continued close to the high rates prevailing in earlier months this year. At department stores in this district the ratio of collections to outstandings on instal ment accounts was 24 per cent, as against only 18Vi in May 1942. The ratio on regular charge accounts rose to 61 per cent from about 49 per cent. Business at wholesale increased further in May, when the value of sales in seven report ing lines was almost one-third greater than in 1942. Gains over a year ago, and in the five months ended May, occurred in electrical sup Page Four plies, dry goods, groceries, and drugs, but sales of hardware, jewelry, and paper were smaller. Inventories decreased in the month in most lines and were smaller than in May 1942. Primary distribution remains unusually ac tive, with rail freight shipments, measured in revenue ton miles, continuing substantially larger than a year ago, according to the Asso ciation of American Railroads. Throughout the country, the increase in May was estimated at 12 V2 per cent, and in the first five months was about 23 per cent. In this section the volume of freight handled by the carriers also has con tinued above 1942 levels, although the number of cars loaded has been somewhat smaller. Banking conditions. Toward the close of June the Treasury offered for subscription $2.5 billion of IV2 per cent notes, due in September 1947. To promote noninflationary financing of the war, every effort is being made to encour age increased purchases of War Savings bonds under the payroll savings plan. Other recent developments in the fiscal field include the calling of $1.4 billion of 3% per cent bonds of 1943-45 for payment on October 15, increased issues of Treasury bills, and the redemption of over $1 billion of bonds and notes on June 15. Many banking institutions in this district have been submitting tenders for the weekly offerings of Treasury bills. The majority avail themselves of the privilege of bidding a fixed price of 99.905 on amounts up to $100,000, on which they receive allotment in full. Place ments here on the nine issues since April have « v DEPOSITS AT MEMBER BANKS THIRD FEDERAL RESERVE DISTRICT THIRD FEDERAL RESERVE DISTRICT MILLIONS 2200 TOTAL 2000 EXCESS COUNTRY BANKS REQUIRED 193 9 % * ranged from $23 million to $441/2 million, and the amount of new money raised, measured by the excess of allotments over maturities of bills originally placed in the district, has aggregated $93 million. In bidding for these securities, banks take cognizance of the fact that they may be converted into cash through sale to the Reserve Bank at a discount rate of % per cent per annum. Treasury bill portfolios of a group of reporting banks in this district totaled nearly one-quarter billion dollars on June 23, as against only $34 million a year earlier. Bills held by the Federal Reserve Bank under the repurchase option have expanded consider ably in recent weeks. Largely as a result of the funds so supplied and the substantial amounts gained in interdistrict commercial transactions, member bank reserves increased slightly to $639 million in the five weeks ended June 23. This was in the face of large amounts absorbed through Treasury operations. Receipts of the Treasury, including income tax collections and withdrawals from depositaries, exceeded dis bursements by $132 million. Currency demand continued to rise, except over the tax period. Reports on the reserve position of member banks covering the first half of June show that in the case of Philadelphia banks excess re serves were equal to 7 per cent and amounts due from banks to 24 per cent of required re serves. At the country banks these proportions were respectively 35 and 104 per cent. Earning assets of reporting member banks, although down somewhat recently, show a net I 940 94 I I 942 1943 increase of more than $300 million to $2,091 million since the close of 1942, owing to pur chases of Federal Government securities. In the five weeks ended June 23 there was a de cline of $45 million. The investments in Treas ury certificates, notes and bonds increased somewhat, but holdings of Treasury bills de clined, reflecting in part sales for reserve ad justment purposes. Commercial loans, includ ing open market paper, decreased $10 million to $233 million and are more than one-fifth below the level of a year ago. Adjusted demand deposits, which include the balances of individuals and business con cerns, had been rising at the reporting banks since early May, chiefly as a result of Treasury expenditures. There was some shrinkage in the week ended June 23, when the bulk of the in come taxes was collected, but over a five-week period a net gain of $83 million to $1,645 mil lion was reported. This was not sufficient to offset heavy Treasury withdrawals and some what smaller balances to the credit of other banks, so total deposits declined $75 million to $2,426 million. Gross deposits at all member banks in the Third Federal Reserve District averaged $4.6 billion in the first half of June, showing an in crease of $900 million in the past year. Since August 1939, the gain has amounted to more than $1.5 billion, reflecting increases of 56 per cent at banks in Philadelphia and 46 per cent at those elsewhere in the district. Page Five BUSINESS STATISTICS Employment and Income Production in Pennsylvania Philadelphia Federal Reserve District Industry, Trade and Service Not adjusted Adjusted for seasonal variation Per cent ch ange Indexes: 1923-5=100 May 1943 from Mo. ago May April VI ay 1943 1943 1942 Year ago May April May 1943 1943 1942 INDUSTRIAL PRODUCTION 152p 151 MANUFACTURING.............. 156p 155 252p 253 92 Metal products....................... 177 181 r Textile products..................... 73p 74 Transportation equipment. . 677p 664 Food products......... i............. 106p 101 Tobacco and products........... 114 114 43 Building materials............. 40 Chemicals and products. . . . 161p 154 Leather and products........... 123p 111 90 Paper and printing................ 90 Individual lines 102 94 134 133 r 86 r Silk manufactures.................. 88 Woolens and worsteds.......... 64p 65 56 58 Cotton products..................... 58p 57 Carpets and rugs.................... 81 Hosiery..................................... 79 160 164 50 42 59 61r Lumber and products........... 29 29 127r 128 187 r 89 158 73 398 r 93 r 119 53 132 131 92 0 +1 0 + 2 - 2 - I + 3 + 5 0 - 8 + 5 +11 + 1 + + + + + + + + + - 20 22 35 4 12 1 70 14 4 24 22 6 2 + + + + + + + + - 19 21 37 1 12 4 80 12 5 19 10 13 2 151p 150 156p 154 175 Tip 700p lOlp 111 41 163p 112p 92 175 r 71 685 96 104 43 156 109 91 157 70 413r 88 r 115 55 134 119 93 103 123 88 60 60 45 79 153 74 68 32 96 27 130 113 83 91 125r 97 83 r 156 84 81 105 416 403 397 306 95 47 107 r 119 85 93 146 116 82 151 76 72 111 461 363 352 269 + 9 + 1 + 3 - 2 + 3 + 1 - 1 - 2 -18 - 4 - 1 + 1* + 8 +178 + 4 + 1 + 2 + 1 +10 +12 + 3 - 1 - 3 - 4 + 2 - 2 + 3 + 1 + 3 - 1 + 8 - 1 + 7 - 4 + 29 0 + 4 - 44 - 14 - 9 + 16* + 9 + 60 + 27 - 4 - 1 - 2 - 6 - 6 + 3 + 3 + 6 + 8 - 4 - 12 + 14 + 14 + 18 + + + + + + + + + + + + + + 1 6 3 4 4 6 3 5 34 8 9 14* 2 26 27 5 6 2 7 21 3 4 5 6 1 9 12 12 16 106 140 84 60p 57 57p 79 162 47 62 27 111 104 94 lllp 111 85 92 125 99p 90 161 80 78 97 422 385 384 322 106 139 85 60 58 56 81 161r 50 64r 28 110 94 36 109 103 84 93 125r 94 87 r 162 83 81 96 428 395 409 309 107 129 85 57 59 44 79 155 83 73 30 96 95 58 81 r 115 85 94 133 105 87 157 75r 72 r 100 480 337 338 274 93 67 112 115 126 67 155 240 -28 -37 -33 + 3 - - 5 + 5 - 13 - 2 64 45 79 83 89 62 115 106 121 71r 163 168 Slaughtering, meat packing. Sugar refining.......................... Canning and preserving.... 104 76 136p 114 85 Paper and wood pulp........... Printing and publishing. .. . 91 138 Leather, goat and kid........... 109p 85 Coke, by-product................... 155 81 COAL MINING........................ 78 Bituminous............................... 107 CRUDE OIL.............................. 406 ELEC. POWER—OUTPUT.. 414 400 Sales to industries.................. 316 BUILDING CONTRACTS 67 TOTAL AWARDSt................. 43 75 Public works and utilitiesf. 119 * Unadjusted for seasonal variation, t 3-month moving daily average centered at 3rd month. 47 36 51 51 126 127 Employment Payrolls Building permits value Debits April 1943 May 1942 April 1943 May 1942 April 1943 May 1942 April 1943 May 1942 April 1943 May 1942 Allentown........... Altoona............... Harrisburg......... Johnstown.......... Lancaster............ Philadelphia.... Reading............... Scranton............. - 1 0 0 - 1 0 0 - 1 + 2 - 3 - 4 - 8 - 7 +u +14 - 6 + 2 +1 - 1 + 2 + 2 + 2 0 + 1 +19 + 4 +12 +13 +34 +36 +18 +19 - 87 + 29 +263 + 26 +368 + 25 0 - 95 Wilkes-Barre.... Williamsport... . 0 - 1 + 2 - 2 + 5 + 9 +46 - 2 + + - + 3 +30 +82 +ii - 44 - 33 + 22 + 1 +372 - 97 + 37 - 12 - 76 - 20 +285 + 7 - 49 -11 - 7 - 2 - 7 - 8 - 7 - 4 -12 - 6 -12 + 3 + 6 +18 0 + 6 + 9 +14 + 7 +21 +10 - 33 - 4 - 7 + 3 +12 - 8 -11 -19 -12 -13 -23 -12 -17 + 7 -11 - 9 -23 -13 +n - 4 +18 - 4 + 9 +16 + 2 — 6 - 1 +16 +21 +22 + 9 1 1 5 1 * Area not restricted to the corporate limits of cities given here. Page Six Indexes: 1932=100 GENERAL INDEX........... 132 - 1 Manufacturing...................... 183 - 1 52 - 2 Anthracite mining............... 85 - 2 Bituminous coal mining .. . Building and construction. 47 + 4 Ouar. and nomet. mining.. . 101 - 2 Crude petroleum prod.......... 137 + 2 Public utilities...................... 99 0 110 - 5 Retail tfade.................. . Wholesale trade.................... 108 - 2 100 + 4 108 0 Dyeing and cleaning........... 103 + 2 - 1 + 4 -18 -18 -19 -19 - 1 - 4 - 3 - 9 0 - 7 - 8 0 +1 —15 -10 + 7 — 5 - 1 0 - 3 - 1 + 1 + 3 + 1 308 461 77 308 114 303 208 135 148 143 151 175 184 +17 +24 — 14 — 5 — 4 — 14 +10 + 4 — 1 + I +12 + 2 + 2 V t Manufacturing Pa.yrolls* Employment* Per cent Per ce/it May change from May change from 1943 1943 index April May index Apri^ May 1943 1942 1943 1942 Indexes: 1923-5=100 TOTAL..................................... 117 Iron, steel and products... . 130 Nonferrous metal products. 194 Transportation equipment. 145 Textiles and clothing........... 86 78 Textiles................................. 115 Food products....................... Stone, clay and glass........... 88 Lumber products.................. 51 Chemicals and products . . . 122 Leather and products.......... 84 Paper and printing............... 100 Printing................................. 91 Others: 61 Cigars and tobacco............ Rubber tires, goods........... 128 61 Musical instruments......... - 1 - 1 + 4 + 6 +1 +32 +2 + 2 - 1 — 6 - 1 - 2 — 8 - 6 1 - 8 in +2 +1 0 -12 0 +5 - 2 -14 0 0 — 2 -1 -3 +2 -17 -13 +38 - 2 188 265 380 250 123 113 170 159 121 74 203 120 138 119 82 234 106 +1 +2 - 1 +0 1 0 — 1 + 3 0 — 1 +24 +25 +19 +51 +13 +14 + 9 +17 +1 + 4 + 2 +26 -3 -3 + 1 +10 +1 +8 —3 +8 + 2 +59 —15 +22 * Figures from 2928 plants. Factory workers Averages May 1943 and per cent change from year ago Retail Sales I Per cent Per cent May |change from May change from 1943 index April May index April May 1943 1942 1943 1942 ft Hours and Wages p—Preliminary “ —Revised. Local Business Conditions* Percentage " change— May 1943 from month and year ago Payrolls Employment 1943 from 5 mos. 1942 Weekly working time* Hourly earnings* Weekly earningsf Aver Aver Ch’ge Aver Ch’ge age Ch’ge age age hours TOTAL............................ 45.0 Iron, steel and prods.. . 46.2 Nonfer. metal prods.. . .44.8 Transportation equip.. 47.7 Textiles and clothing. . 40.6 41.2 Clothing...................... 39.2 Food products............... 44.0 Stone, clay and glass . . 39.3 Lumber products......... 43.7 Chemicals and prods.. 44.6 Leather and prods........ 40.7 Paper and printing.. . . 42.7 Printing........................ 39.7 Others: Cigars and tobacco... 42.3 Rubber tires, goods . . 44.3 Musical instruments. 48.9 * Figures from 2770 plants, + 6 + 7 + 7 + 1 + 5 + 6 + 5 + 8 + 3 + 5 +12 + 3 + 5 + 3 +10 + 6 + 7 $.994 +12 $44.46 1.065 +10 49.15 .913 +U 40.94 1.138 +11 54.24 .708 +13 28.58 .733 +M 30.12 .650 +11 25.52 .774 + 9 34.23 .874 + 7 34.38 .699 +12 30.34 1.007 + 9 44.86 .711 +11 28.82 .864 + 9 37.18 1.009 + 9 40.12 .576 .914 .925 +13 + 9 +15 24.37 40.48 45.30 t Figures from 2928 plants. +19 +17 +19 +12 +19 +20 +17 +18 +10 +18 +22 +14 +13 + 9 +25 +16 +24 V Distribution and Prices Per cent change Wholesale trade Unadjusted for seasonal variation 1943 from 5 Month Year mos. ago ago 1942 Sales Total of all lines..................... Drugs....................................... Dry goods............................... Electrical supplies............... Groceries................................. Hardware............................... Jewelry.................................... Paper........................................ V Adjusted for seasonal variation May 1943 from + 6 - 6 + 6 +21 0 - 1 +26 +10 + 32 + 2 + 35 +115 + 23 - 11 - 4 - 9 — 3 - 1 - 5 — 3 — ]P -17 + 5 - +12 + 6 +16 +57 + 9 -14 - 8 -30 Paper....................................... Indexes: 1935-1939 =100 May Apr. May 1943 1943 1942 Month Year ago ago 26 28 46 20 26 25 13 Percent change from Basic commodities (Aug. 1939=100).. . . Wholesale (1926=100)................ Farm............................. Food.............................. Other............................ Living costs (1935-1939=100).. . . United States............. Philadelphia............... Food............................ Clothing.................... Rent............................ Fuels........................... Housefurnishings... Other.......................... mos. 1942 + 9 + 6 + 7 +22 - 4 - 1 RETAIL TRADE Sales Department stores—District........... Philadelphia.. Women’s apparel................................. Men’s apparel...................................... Shoe......................................................... 141p 142 137 131 107 155 159 129 141 145 130 130 113 112 134 - 9 -11 + 6 - 7 -26 130 130 165 94 126 125 140 97 181 183 159 118 + 4 +18 - 2 -28 -29 + 4 -20 142 131 86 158 217 232 119 132 134 141 135 87 172 199 247 128 116 114 146 132 83 166 256 235 150 113 115 0 - 3 - 1 - 8 + 9 - 6 - 7 +14 +18 - 3 0 + 3 - 5 -15 - 1 -21 +17 +17 106 107 77 0 Source: U. S. Department of Commerce. Prices 1943 May Apr. May from 1943 1943 1942 May 1943 from Inventories Department stores—District......... Philadelphia. Women’s apparel............................... Shoe....................................................... Inventories 1943 Month Year ago ago Aug. 1939 176 0 + 6 + 76 104 126 110 97 0 +1 + 2 0 + 5 +20 +12 + 1 + 39 +106 + 64 + 21 125 125 142 128 107 106 123 115 +1 0 +1 0 0 0 0 0 + « + 9 +19 + 1 0 + 2 + 1 + 4 + + + + + + + + 27 27 52 29 4 10 22 14 Not adjusted Per cent change FREIGHT-CAR LOADINGS Total.................................................. Merchandise and miscellaneous Merchandise—l.c.l........................ Goal.................................................. Ore.................................................... Coke.................................................. Forest products............................. Grain and products...................... Livestock......................................... MISCELLANEOUS Life insurance sales ... Business liquidations Number............. ... t. Amount of liabilities. Check payments.......... 161 * Computed from unadjusted data. 207 141 139p 136 131 125 139 148 146 149 142 179 128 125 108 107 174 131 130 160 100 130 128 140 104 182 183 154 125 - 6 - 7 -16 - 1 -22 + 2 - 8 + 4 + 9 143 135 86 141 276 197 114 123 122 134 134 87 137 104 200 108 108 105 147 136 83 148 325 200 144 105 104 +38 - 8 105 107 76 —70* -82* +14 —59* 21 +90* 4 +18 161 30 16 202 69 23 141 +21 +17 -20 -30* -73* -22 p—Preliminary. Source: U. S. Bureau of Labor Statistics. BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Reporting member banks (000,000’s omitted) June 23, 1943 Changes ip— One year Assets Commercial loans................... $ 233 Loans to brokers, etc............ 31 Other loans to carry secur.. . 11 -$10 - 4 Loans to banks....................... Other loans............................... + - 5 4 -$ 67 + 5 * — 5 + 3 * Total loans............................ $ 435 —$13 -$ 98 Government securities......... $1376 Obligations fully guar’teed .. 73 Other securities...................... 207 ♦ Five weeks —$31 5 111 Total investments............... $1656 *r 1 +$792 + 10 - 49 —$32 +$753 Total loans & investments.. $2091 Reserve with F. R. Bank.. . . 400 28 Balances with other banks. . 83 Other assets—net................... 60 —$45 - 7 +$655 - 93 + 1 t 7 - - 17 - 4 Liabilities Demand deposits, adjusted.. $1645 Time deposits.......................... 160 U. S. Government deposits. . 254 Interbank deposits................. 367 +$83 - 3 -145 - 10 Other liabilities....................... + 14 222 2 +$272 8 + 246 t — 2 2 + 5 * Not available. f Reciprocal bank balances now reported net. Changes in weeks ending— Changes in five weeks Philadelphia Federal Reserve District (Millions of dollars) May 26 June 2 June 9 June 16 June 23 Sources of funds: Reserve Bank credit extended in district........ Commercial transfers (chiefly interdistrict).. Treasury operations............................................ +11.1 + 4.1 -18.7 +26.0 - 2.9 - 2.9 - 1.5 + 2.4 - 5.2 - 8.8 +47.1 - 8.6 +50.4 +20.9 -97.1 + 77.2 + 71.6 -132.5 Total...................................................................... - 3.5 +20.2 - 4.3 +29.7 -25.8 +16.3 + + 8.6 9.4 2.8 0.1 +17.1 + 2.6 + 0.5 + 0.0 + 0.9 0.3 3.3 0.2 + 0.2 +29.2 + 0.2 + 0.1 - 4.6 -20.8 - 0.5 + 0.1 +20.4 + 1.3 - 5.9 + 0.5 - 3.5 +20.2 - 4.3 +29.7 -25.8 +16.3 Uses of funds: Currency demand................................................. Member ba,nk reserve deposits........................ “Other deposits” at Reserve Bank................. Other Federal Reserve accounts...................... Total...................................................................... Federal Reserve Bank of Phila. (Dollar figures in millions') Changes in— Member bank reserves (Daily averages; dollar figures in millions) June 23 1943 Five weeks Bills discounted.... $ 0.2 Bills bought............. 0 Industrial advances. 4.7 U. S. securities......... 439.4 -$ 0.3 0 - 0.1 + 44.6 -$ 0.6 0 0.6 + 234.2 Total......................... Note circulation.. . . Member bk. deposits U. S. general account Foreign deposits.... Other deposits......... Total reserves.......... Reserve ratio........... +$44.2 + 25.1 + 1.3 -15.2 + 12.8 - 5.9 -33.5 - 2.8% +$233.0 + 299.2 - 49.1 Country banks 4.5 1942: June 1-15.. + 16.6 1943: May 1-15.. 3.7 + 7.9 May 16-31. . - 12.9% June 1-15. . $444.3 962.1 638.8 0.5 89.4 5.1 1266.4 74.7% One year Phila. banks 1942: June 1-15.. 1943: May 1-15 .. May 16-31. . June 1-15. . Re Ex Held quired cess Ratio of excess to re quired $482 411 387 383 $312 343 350 359 $170 68 37 24 54% 20% $210 262 246 252 $146 179 182 187 $ 64 83 65 65 44% 46% j 36% 35 % n% 7% Page Seven National Summary of Business Conditions INDUSTRIAL PRODUCTION SEASONALLY APJWTEO. NONDURABLE MANUFACTURES DURABLE / /■'MACHINERY 8l “'TRANSPORT. EQUIP Federal Reserve indexes. Groups, are express ed in terms of points in tlie total index. Mon thly figures, latest shown are for May, 1943. WHOLESALE PRICES I940 Bureau of Labor Statistics’ indexes. Weekly figures, latest shown are for week ending June 12,1943. YIELDS ON U- S. GOVERNMENT SECURITIES Production. Total volume of industrial production, as measured by the Board’s seasonally adjusted index, remained in May at the level reached in April. Activity in munitions industries continued to rise, while production of some industrial materials and foods declined slightly. Aircraft factories established a new record in producing 7,000 planes in May. In most nondurable goods industries there were small increases or little change in activity. Meat production, however, reached a record high level for May reflecting a sharp advance in hog slaughtering. Seasonally adjusted output of other manufactured foods continued to decline. Newsprint consumption showed little change, and publishers’ stocks declined further to a 50-day supply on May 31. Consumption for the first five months of 1943 was only 5 per cent below the same period in 1941, whereas a reduction of .10 per cent had been planned. , The temporary stoppage of work in the coal mines at the beginning of May brought production of bituminous coal and anthracite down somewhat for the month. Iron ore shipments on the Great Lakes continued to lag in May behind the corresponding month of 1942. The value of contracts awarded for construction continued to decline in May, according to reports of the F. W. Dodge Corporation. Total awards were about 65 per cent smaller than in May a year ago. Distribution. During May the value of sales at department stores decreased more than seasonally, and the Board’s adjusted index declined 5 per cent. Sales, however, were about 15 per cent above a year ago, and during the first five months of this year showed an increase of 13 per cent over last year. In gen eral, the greatest percentage increases in sales have occurred in the Western and Southern sections of the country where increases in income payments have been sharper than elsewhere. Freight-car loadings advanced seasonally in May but declined sharply in the first week in June, as coal shipments dropped 75 per cent from their previ ous level, and then recovered in the second week of June as coal production was resumed. Commodity prices. Prices of farm products, particularly fruits and vegetables, advanced during May and the early part of June, while wholesale prices of most other commodities showed little change. Retail food prices showed further advances from the middle of April to the middle of May. On June 10 maximum prices for butter were reduced by 10 per cent and on the 21st of the month retail prices of meats were similarly reduced, with Federal subsidy payments being made to processors. » Agriculture. Prospects for major crops, according to the Department of Agri culture, declined during May while output of livestock products continued in large volume, as compared with earlier years. Indications are that acreage of crops may not be much below last year but that yields per acre will be reduced from the unusually high level of last season. Averages of daily yields on notes and bonds and average discount on bills offered. Bills are tax-exempt prior to March 1941, taxable there after. Weekly figures, latest shown are for week ending June 19, 1943. MEMBER BANKS IN LEADING CITIES 1939 1940 Demand deposits (adjusted) exclude U. S. Government and interbank deposits and col lection items. Government securities include direct and guaranteed issues. Wednesday figures, latest shown are for June 16, 1943. Page Eight Bank credit. Excess reserves at all member banks declined from 2 billion dol lars in early May to 1.5 billion in the latter part of the month and remained at that general level through the first half of June. As the Treasury expended funds out of war loan accounts which require no reserves, the volume of deposits subject to reserve requirements increased and the level of required reserves rose by 600 million dollars in the four weeks ending June 16, while continued growth of money in circulation resulted in a drain on bank reserves of 400 million dollars. These reserve needs were met in part by Treasury expendi tures from balances at the Reserve Banks and in part by Federal Reserve pur chases of Treasury bills. Reserve banks continued to reduce their holdings of Treasury bonds and notes in response to a market demand for these issues. During the four weeks ending June 16, Treasury bill holdings at member banks in 101 leading cities fluctuated widely, reflecting primarily sales and repurchases on option account by New York City banks in adjusting their reserve positions. Holdings of bonds and notes declined somewhat while cer tificate holdings increased. Loans to brokers and dealers in securities declined sharply during the period, as repayments were made on funds advanced for purchasing or carrying Government securities during the April War Loan Drive. Commercial loans continued to decline. Government security prices advanced during May following the close of the Second War Loan Drive, but in the early part of June there were small declines. y
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