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How Banking Tames Its Paper Tiger— Part III Resort Business Looks Promising . F E D E R A L R E S E R V E B A N K OF P H I L A D E L P H I A HOW BANKING TAMES ITS PAPER TIGER Part III This article is the last in a series on bank mechanization. Here we discuss CAUSES, EFFECTS, AND CONCLUSIONS. From the court house across the street, the two STATISTICAL FO O TW O R K banks look like twins. They have the same stone- In February and March we surveyed Third Dis gray complexion, the same Corinthian capitals, trict member banks about mechanization. The the same kind of polished brass nameplates. poll had three main purposes: first, to find out But under the skin the two banks are far from what kind of machinery banks had and how they sisters. Although they are now about the same used it; second, to explore bankers’ plans and size, one has increased its deposits much faster opinions regarding certain phases of mechaniza than the other in the past ten years. This faster tion. These tabulations were published in last growing bank has a greater percentage of its month’s Business Review. The third objective assets in loans, particularly to consumers. It has was to shed some light on the causes and effects relatively more checking accounts, fewer savings of mechanization. accounts. more It has branches mo r e and e mp l o y e e s , greater income and higher expenses. These had to measure the degree of mechaniza tion in each Mechanization bank. is a im slithery concept and a gi n a r y banks of there is no standard c o u r s e , but thei r way to gauge it. We characteristics chose a method which did was not o f thin are To do this, we first come air. differences t we e n t he out to the relatively simple be information available t wo are those we found to appropriate The be a s s o c i a t e d from the survey. The questionnaires showed how the banks differences handled thirteen basic in me c h a n i z a t i o n . banking operations so wi t h 2 business review we rated each operation according to the equip ter group proved interesting because it included ment used. From these ratings we developed an some items which one might expect to be related over-all mechanization score for each bank. We to mechanization. then broke down the banks in each size group We found that the following factors were cor into categories A through D according to their related with over-all mechanization. mechanization score. Branches The more branches a bank has, the Growth Banks which show greater in more mechanized it is likely to be. The next step was to compare the degree of mechanization as shown by the four categories with other operating data taken from condition creases and earnings reports. Statisticians have ways of 1959) tend to be more mecha measuring the strength of a correlation between nized. two sets of variables. We used a maneuver called Loans in deposits (1950 to Higher ratios of loans to total as “ Kendall’s coefficient of rank correlation” named sets, earnings on loans to total after M. G. Kendall, an eminent English statisti earnings, and consumer loans to cian. This told us with some validity the amount total loans are associated with the of correlation between our mechanization meas ure and the many variables we selected.1 more mechanized banks. Deposits light in savings deposits goes with Our procedure gave each operation equal a high degree of mechanization. weight but obviously each operation is not equally important. It proved impossible to weight prop A mix heavy in demand deposits, Earnings The higher a bank’s ratio of total erly each operation, however. Instead we gave (gross) earnings to total assets, special treatment to demand deposit accounting the more mechanized it is likely to be. — far and away the biggest clerical job in most banks. We ran separate correlations between the Expenses Total expenses as a percentage of mechanization ratings for special and regular total assets and “ other current ex checking accounts and a number of other data. penses” — the category which in cludes machinery costs— as a H AN D IN H AN D W ITH M ECH AN IZATIO N percentage of total earnings are Some of the items we put under the statistical generally glass proved to be rather closely correlated with mechanization; others showed a weaker but still identifiable relationship. More than half of the higher in the more mechanized banks. Employees Banks with more employees tend to be more mechanized. ratios, however, showed no correlation. This lat The strongest correlations with mechanization 1 The ratios of: loans to total assets, consumer loans to total loans, real-estate loans to total loans, U.S. Government securities to total assets, time deposits to total deposits, capital accounts to total assets, capital accounts to total deposits, total earnings to total assets, net current earnings (before taxes) to total assets, net current earnings (before taxes) to capital accounts, earnings on loans to total earnings, trust department earnings to total earnings, total expenses to total earnings, total current expenses to total assets, salaries and wages to total earnings, other current expenses to total earnings, profits (before taxes) to capital accounts, net profits (after taxes) to total assets, net profits (after taxes) to capital accounts. The percentage increase in deposits, 1950-1959. The number of branches per bank. The number of employees per bank. were shown by branches, growth, the ratio of loans to total assets, and the number of employees. The items listed in the opposite footnote, but not mentioned above, did not appear to be strongly related to mechanization. The correlations with demand deposit mecha nization alone were somewhat inconclusive, due 3 business review perhaps to more limited differences in mechani branch banking. Many branches are acquired zation within size groups. In general, however, through mergers which give substantial, one-shot these findings tended to substantiate the over-all boosts to deposits. correlations, particularly in the smaller size groups. Does it seem strange that the more mechanized banks have more employees? At first glance it A pattern em e rge s did to us. After all, isn’t mechanization supposed The type of business a bank does seems to be to reduce the number of workers needed? But related to the amount of mechanization it has. Banks that emphasize retail banking with its after some thought the correlation between mech branches, consumer credit, and special checking accounts appear to be more mechanized than those anization and employees fits into the pattern. It takes a lot of people to handle loans and checking accounts and to man branches. Banks which so that don’t. This makes sense because retail bank specialize may have fewer employees than if they ing generates large numbers of small, more or weren’t so mechanized but they still need con less standardized transactions which seem to siderably more than the investing, time deposit, breed mechanization. single-unit banks. Lending banks are usually more mechanized One of the major causes of mechanization is, than investing banks— probably because it takes we think, aggressive management. It is written more clerical work to investigate borrowers and between the statistical lines. Growth, branches, service loans than high loan ratios, etc., generally seem to signify it does to clip bond aggressiveness. c o u p o n s . Banks We mentioned this idea to a number of equip a relatively ment manufacturers and they agree. They say large proportion of that, in their experience, management is a prime with checking accounts factor in mechanization. Aggressive, forward- seem to require more machinery than banks looking management is most likely to make the which have a high percentage of the less active necessary studies and to order the latest machin savings accounts. ery available. We should point out, however, that It is not surprising that the more mechanized we do not mean to imply that aggressive man banks have higher gross earnings. High earnings agement is always good management. It all de are a natural result of the way these banks oper pends on the situation. ate. Loans earn more than investments; consumer loans, more than most other kinds. But these How about profits? operations, as we pointed out, require more de Notice that we did not mention anything about tailed processing. Expenses, therefore, also are a correlation between mechanization and profits. likely to be higher. We tested several profit ratios— both before and Growth is a thread running through most of after taxes— and the results were inconclusive. the other mechanization-related characteristics. True, the more mechanized banks had higher The retail bank, the lending bank, the checkingaccount bank are likely to be the banks that have earnings but they were offset by higher expenses. Why were we unable to find any relationship grown the fastest. Growth is also tied in with between profits and mechanization? 4 To this business review question there are many speculative answers. may continue for a while to do it the old way— It could be that some sort of correlation exists just to be sure. Then it may take several more but our statistical procedures were not “ fine- years to get enough operations on the computer tuned” enough to pick it up. Probably we would to use it at an efficient percentage of capacity. have detected a strong relationship but a weak All the while the computer and its large staff of one might have slipped by. On the other hand, high-salaried personnel may be draining, not we can think of some good reasons not to expect adding to, profits. Though their initial costs are a correlation between profits and mechanization. nothing like those of a computer, electronic book Profits are, in effect, a distillation of every keeping machines (tronics) and punched-card thing a bank does. Earnings depend on loan and tabulating installations (tab) also require break- investment policies, interest rates, competition, ing-in periods. myriad other things. Expenses also are influenced Another consideration: we rated banks accord by many elements— interest paid, depreciation, ing to the type of machinery in use, not effi wage scales, etc. So it is entirely possible that ciency. It may be that some of the banks using the effects on profits of any savings due to mech less machinery are actually more efficient and anization may be drowned in a sea of other therefore more profitable than the more mecha variables. nized banks. Systems, shifts, training, morale, Quite a number of bankers have told us that and many other things besides machines enter they actually do not expect savings from mecha into efficiency. We know of a case, for example, nization in the short run. They say they go in for it with the more distant future in mind. Mech where a large bank considers two experienced girls with conventional bookkeeping machines to anization to them is a matter of saving space, of be more efficient than tab for their payroll work. just being able to conduct future operations in an existing building. They say mechanization O B SERV A TIO N S AN D O P IN IO N S means greater accuracy, better service to the This section winds up our series on bank mech customer, and better control through centralized anization. It offers some conclusions based on accounting. All these are important objectives our survey, supplementary interviews, and a but their effect on profits may be hard to isolate. study of mechanization literature. It is entirely possible that some mechanization may actually reduce short-run A structural im pact profits. It costs a lot to install Something as important as automation is bound new machinery and get it to have an effect on the structure of the banking operating Com system. One might expect that automation would puters are the best but not the accelerate the trend toward consolidation and smoothly. only illustration. Detailed studies must be made, mergers. Large banks, it seems, should be able operators trained, complete systems changed, jobs to automate much more than small banks, which programmed, and so on. It may be several years should be a long-run competitive advantage. from the day the order is placed before a com Furthermore, since automated equipment thrives puter does any productive work. And even after on volume, large banks may become even more an operation is on a computer, management also eager for growth via the merger route. 5 business review But, like as not, this structural effect of auto have talked to claim they have neither the knowl mation won’t be so great, or come so soon, as edge nor the time. Many of them are looking to many expect. It will be years before the majority the equipment manufacturers to supply the neces of large banks are operating fully automated sary leadership. The manufacturers, however, systems and maybe seem to be concentrating at present on the large- longer before they are achieving big reductions in costs. Moreover, even bank market. Maybe state or county bankers’ if automation does lead to lower costs, it is associations will be able to provide some initia questionable how sensitive customers are to dif ferences in bank charges. You can count on the tive in the area of cooperative use. bank with lower charges to let the public know ing cooperative use wanted to own and operate about them, but will this offset habit, convenience, the machinery with a group of other banks. The personal contacts, and all the other intangibles mechanics that go into the selection of “ my bank” ? It is idea haven’t yet been likely that automation as a competitive weapon fully thought out but In our survey, 23 per cent of the banks favor of the will prove more effective in the commercial field. one plan often men Business customers usually place greater weight on rate differentials and the extra services that tioned is to set up a nonprofit corporation to take title to the equip the large bank can perform with its complicated ment and to provide equitable and impartial equipment. Then don’t forget that small banks may gain the advantages of automation by sharing the use management. This may create a problem, how ever. Will it be legal for banks to own the stock of such a corporation? and cost of the necessary machinery. We believe that some type of cooperative use will become a vital force in bank operations. Jo in t autom ation But it will not blossom until the large banks be The cooperative use of automated equipment is come considerably more automated than they are one of banking’s “ hot” topics right now. The now. It’s just a guess but we would say that trade magazines write about it, seminars are held cooperative use on a large scale is at least five on it, bankers discuss it regularly and, accord years away. ing to our survey, one out of three favors it. The service bureau is the most popular method. Profits But so far there has been much talk and very Mechanization of the type existing today doesn’t little action. Only a handful of rudimentary ven generate “ fast-buck” profits— at least that is what tures are operating in the entire country. Nor is our survey indicates. Nevertheless, mechaniza the situation soon likely to change. Small banks tion. if properly used, should increase long-run seem to be waiting until the big banks have had profits by reducing unit operating costs. Computers are new to Third District banking more experience with automation— pioneering experience that will benefit the entire industry. Initiative is another factor. Who is going to and so far they may have been an actual drain on profits. Computers, however, when fully organize and push the cooperative venture? shaken down and operating at or near capacity, Small-bank executives could do it but those we should give their owners an important edge in 6 business review efficiency. A particularly important future use for proper systems and procedures and they are likely banking’s computers is providing better informa to delineate and elevate the operations function. tion for the solution of management problems— Automation should strengthen internal audit choosing the location of branches, determining controls by separating completely the origina the use of funds, making basic policy decisions, tion and processing of entries. The auditor’s job, etc. This, when it comes, could have an impor we understand, will be more to audit the entire tant effect on profits. system and less to check detailed masses of docu Simply the process of getting ready for addi ments and figures. But vigilance will be no less tional mechanization will increase operating effi essential. No system, automated or not, is so per ciency in some banks. Intensive studies of exist fect that dishonest employees won’t try to beat ing procedures usually are made before impor it. Just a few months ago the business press made tant new equipment is ordered. Such studies often much of the apprehension in New York City of turn up many ways by which the old system can one of the first automated embezzlers. be improved, even without new machinery. We The new equipment that banks are buying will have been told that there is room for improve alter space requirements. Computers will elimi ment in almost every system. nate bulky files and batteries of bookkeeping machines. Sorter-readers, little longer than a sofa, Behind those revo lvin g doors will take the place of rooms full of proof ma Increasing automation should bring changes in chines. Tronics require about half the space of the internal organization of many banks. Data the conventional bookkeeping machines they re processing is commonly centered in one depart ment which is likely to grow in importance and place. Perhaps some of the space thus freed will prestige— probably at the expense of other de tellers’ windows and private offices for those who partments. Traditional departmental lines will meet the public and hear confidential financial tend to blur as computers and allied machines matters. Certainly in an expanding industry like take over fully integrated operations. banking, extra space won’t go to waste. be used to improve customer facilities— more Automation should accelerate the trend toward centralized accounting. Automated equipment For the custom er often makes it desirable to process all branch Bank customers should benefit greatly from in transactions at some central spot— probably near creased mechanization. They should get faster, but not in the central business district. cheaper, and more accurate service than they Shift work should increase. Electronic equip ment is too expensive to stand idle 16 hours a day. otherwise would. Mechanization also should widen the range of banking services available. More bankers, no doubt, will find themselves It enables banks to offer new services heretofore getting up to go to work as the sun goes down. impossible or impractical. Furthermore, mecha Many smaller banks do not have an operations nization may impel bankers to think up new officer or department. The job is an extra duty service ideas. There is a basic economic reason. assigned to some other officer, if indeed it is Mechanization increases overhead costs and formalized at all. This should change. More and supposedly decreases variable costs such as labor. more banks are realizing the importance of Increased overhead puts a premium on vol 7 business review ume. Spread these costs over a greater volume readers are due to be delivered. Smaller banks of work and the average cost per unit declines. are achieving a measure of automation with Banks may find it hard to increase the volume tronics. Banks of all sizes are getting ready for of their regular services as much as they would new machinery by numbering their checking like. They try but they often bump into a rela accounts. About a quarter of the banks in our tively limited demand and stiff competition from survey had assigned account numbers. other banks in the area. So banks may innovate Banking has made progress in imprinting rout new services in order to get the increases in vol ing symbol-transit numbers on checks in magnetic ume they seek. The preparation of accounting ink. Less than a year after the standardized type font was announced, 7 per cent of the member reports for small businesses is one of many such new services. banks in the district— including most large ones Thus, mechanization, by accentuating the need — had started the job of imprinting. Many others for volume, could intensify competition in exist expressed intentions of doing so. But there is still ing services and stimulate the introduction of new great room for improvement in this task so neces ones— both to the advantage of the customer. sary to the banking system and the economy. The causes of m echanization had no imprinting plans. About three-fourths of the banks in our survey The type of business a bank does is one of the The high cost of new electronic equipment prime causes of mechanization. Banks that em means that mechanization in banking should pro phasize services which generate a large number ceed at a deliberate, orderly pace. This will lessen of repetitive, standardized transactions are likely and delay the impact of mechanization and mod to be the most automated in any size group. erate the adjustments that must be made to it. The type of management a bank has is prob Consolidation and cooperative use should come ably another important cause of mechanization. about gradually and in the long run. Employment Aggressive management, looking for ways to pro dislocations should be minimized. Workers will vide better service, is more likely to upset the be replaced gradually by machines and should be machinery status quo and try out new equipment easily absorbed in other sections of the bank even if there are risks involved. through turnover and growth in volume. Few, if any, bankers are expected to lose their jobs. P rogress in m easured steps Banking may be a relatively late comer in It has been said that banking has lagged behind automation, but this could turn out to be an other industries in automation. This may be true, advantage. The industry should be able to profit but banking is now beginning to get into the act. from the pioneers’ experience. In the literature Much new equipment has been delivered and we have read one lesson stands out above all much more is on order. Present plans call for an others: plan well and carefully in advance for upsurge in big-bank automation in 1961 and new electronic machinery and don’t underesti 1962 when many new computers and sorter- mate the changes it will bring. 8 RESORT BUSINESS LOOKS PROMISING FOURTH-OF-JULY WEEK END With vacation time at hand, landlords and mer chants in summer resort areas of the Philadelphia Federal Reserve District say they are looking forward to> another ten weeks or so of big busi ness. At this writing it’s too early to tell just how big that business is going to be, because the spending pattern of vacationers will remain ob scure until after the summer’s first big week end — Independence Day. And, as always, there is that hard-to-predict factor so often referred to as “ Old Man Weather.” It must be remembered that he alone can make or break a resort season’s business in these parts. In talking with bankers and other business men in our most popular seashore and mountain resorts, we were impressed with the many ex pressions of optimism concerning this 1960 vaca Summertime's first big week end— climaxed by Independence Day— seems to have brought a full measure of cheer to business men and bankers in our major resort areas. Under a sky full of sunshine, literally hordes of vacationers swarmed over highways and crowded into seashore and mountain resorts that soon were bulging at the seams. Parking facilities were at a premium and overnight accommodations were taken up about as fast as overworked desk clerks could handle the applicants. From all accounts this crop of week-enders and the vacationers who came set to stay for a while were excellent spenders. They jammed the restaurants, made liberal pur chases in gift shops, and patronized well the amusement facilities available to them. As early as Saturday night our resort people thought they were experiencing one of their near-record week ends; by Monday morning, they were sure of it. In local banks, week-end receipts quickly pushed deposits to year-ago levels and in some places even that record was exceeded by a convincing margin. Another look at July and early August reservations seems to have convinced most landlords that the I960 vacation season has all the earmarks of becoming a very good one. Included in the holiday week-end crowds were many soon-to-be vacationers who promptly reserved future space for themselves in hotel, motel, or guest house. Cottage rentals, too, received a "shot in the arm" that narrowed the choice for this type of accommodation over much of the period to Labor Day. tion season. Some appeared confident that resort 9 business review business would at least equal the very excellent first half of June, are being taken up at a faster volume experienced in 1959. Others, a bit more pace now. In some areas, however, these rentals cautious, suggested that it might be a little hard don’t quite measure up to year-ago levels. It looks to match last season’s record, particularly since like another good year for summer camps in the the current one started off at a somewhat slower Pocono Mountains, including those for adults pace on an unfavorable weather note. as well as children. E arly-sea so n w eather w as d isap p oin tin g Length of stay has changed little la te ly It frequently happens in our area that the weather Reservation periods in recent years have seldom in May and even in the first half of June is too run for more than two weeks, except in cottages cool and too wet to encourage heavy travel to a and housekeeping apartments, where three weeks favorite spot at the seashore or in the mountains. to a month is fairly common. Before the war That was the pattern this year. And, unfortu and in the early postwar years many vacationers nately, it was the same dismal picture on repeated were accustomed to reserving space for longer week ends, including the important Memorial periods. To be sure, the “ man of the house” Day period, when New Jersey shore resorts “ un seldom had more than a two-week vacation. But lock the ocean” and resorts in our Pennsylvania the rest of the family frequently vacationed for mountains celebrate their laurel festival. a month or the whole season. More liberal time Actually, it was not until mid-June that week allowances granted by employers in recent years end crowds in our resort areas came even close have contributed to changing all this; so has the to matching the near-record ones of a year ago. automobile, the superhighway, and the motel. Moreover, plans for a 1960 summer vacation Now, most families spend the entire vacation time seemed to mature more slowly this year. The late together, making a shorter visit in one place, but start may well have been the result of no early visiting more places. heat wave, such as we had in June 1959, nor even a spell of muggy weather to act as a reminder that vacation time was so near. Resort seasons continue to stretch out These longer vacations, sometimes involving trips Advance rese rvatio n s now a re a source of en cou ragem ent periods separated by some weeks, seem to be Following a pronounced lag earlier this season, contributing to a gradual lengthening of what to several places, and frequently divided into advance reservations picked up sharply about the resort people call their “ peak season.” This trend middle of June. By the time schools closed, most also has been helped along by early- and late- resorts were reporting substantial bookings com season promotional events scheduled both at the parable to those of a year earlier. Proprietors of seashore and in the mountains. In the early spring hotels and motels say they are in good shape for the Easter season “ steals the show” at our shore just about all of July and in some cases early resorts. But in the Pocono Mountains, the fall August. Cottages and housekeeping apartments, months have become increasingly popular par which had seemed hard to rent in May and the ticularly among newlyweds, with more and more 10 business review resorts catering exclusively to this honeymoon with the larger and more pretentious hotels. Ex trade. panded recreation space and redecorated dining rooms also have added much to the dollar totals Som e p e ak season rates are a little h ig h e r spent on renovation work. Although rate advances on a broad front are not in prospect this year, resort people tell us that W eather can still decide the outcome of this vacation season some hotels have made increases in line with Neither businessmen nor bankers in our resort rising costs for food and services. Other hotels areas see anything in the over-all economic pic and motels also are said to have made upward ture that might suggest vacation budgets any less adjustments to cover added entertainment facili liberal than those of a year ago. And vacationers ties like new swimming pools or existing pools turned out to be mighty good spenders in the enclosed for all-weather use. About the only area 1959 season. While it is true activity was slow in where we hear of rates coming under downward starting this year, resort people are disposed to pressure is in the older guest house type of ac blame this tardiness on the almost unbroken suc commodation found in some of our shore resorts. cession of rainy week ends in May and early June. Here, the new motels continue to offer competi As these people have repeatedly pointed out, tion that is hard to meet without some kind of foul weather can have serious repercussions on rate adjustment. the volume of any season’s resort business. From M otels continue to bolster construction activity Although motel building is definitely past the all accounts, July reservations seem to assure good through-the-week returns for that month. Week-end volume, however, could be another story, depending upon the kind of weather we period of peak activity, it still accounts for a have. The long-range forecast looks good in the substantial volume of the new construction in our temperature department, where meteorologists summer resorts. In some areas, cottage building say we can expect a goodly share of 90° days. But also has contributed considerably to this season’s building totals. More and more of the cottages their prediction of above-average rainfall is news being built at the seashore are intended for year- Our resort people have their fingers crossed round use, in many cases by people who will be against that kind of a moisture supply coming retiring shortly. Most of the summer bungalows down on week ends. that will make no one but the farmers happy. built this spring seem to have been in the moun The month of August could easily hold the key tains, where they have been needed for some time to this season’s resort business. A “ northeaster” by resorts desiring to expand their peak-season or two is about the surest way of making a vaca guest capacity. tioner pack his bags and light out for home. Renovations and additions to existing build On the other hand, a combination of excessive ings also have been on a fairly large scale this heat and humidity, so distasteful to anyone not year. Many of the motels built only a few years on vacation, can nearly always be counted on to ago have begun to add units, others are building set the cash registers jingling merrily in all our swimming pools to put them in the same league resort areas. 11 FO R TH E R E C O R D Third Federal Reserve D istrict U nited States Per cent change Per cent change SU M M ARY M ay I960 from mo. ag o year ag o 5 mos. I960 from year ag o year ago mos. I960 from year ago — i — 7 - 8 + i - 2 — 9 - 1 — i — 2 + i — 6 - 3 + 5 — 7 + 0 EM PLOYM ENT A N D IN C O M E 0 + 3 + + 1 2 0 3 + + 4 + 3 + 1 + 3 -1 0 Per cent change May I960 from 4- i i + 2 + 5 4- 6 — 4 + 3 Lancaster . . . . — i 0 + 1 3 + 8 1 0 -2 7 - — 3 6 0 + 3 + 2 + b - 9 - + 3 3 0 + 5 + 1 + 3 6 + 3 + 3 + 10 + 7 — 1 0 + 1 0 + 2 + 7| 1 + M + 12 - 8 — 9 -1 0 —1 1 - 2 - 2 + 8( + 7( + — + — — — + 0* + ‘ A d ju ste d for seasonal v a ria tio n . 3* + 2* f20 C itie s Reading ........ 0 + 2 + 4 + 4 -1 5 0 - Trenton .......... - 1 + 2 + 4 + 2 - 4 + 1 — 4 + 9 -1 4 Wilkes-Barre . — 1 — 1 + 6 + 3 - 9 - 6 + + 1 1 1 1 1 3 — 1 + M -1 2 — 14 — 6 + 8 0 0 + — 1 + 12 -1 3 -1 6 — 4 + 7 0 2 + 0 2 (P h ila d e lp h ia W ilmington .. 3 + 7 + + 5 + 2 4- i Scranton ........ + PRICES Per cent Per cent change change May I960 May I960 from from Philadelphia . B A N K IN G Consum er .............................. Check Payments Stocks — i — 1 — 1 — 1 TRADE* (A ll m em ber banks) Deposits ................................ Loans ...................................... Investments .......................... U.S. G o v t, secu rities........ O th er .................................... C h e ck paym ents ................ Per cent cha nge May I960 from Sa les mo. year mo. year mo. year mo. year mo. year ago ago ago ago ago ago ago ago ago ago M anufacturing p ro d u c tio n . + 2 Construction contracts . . . - 1 8 C o a l m ining ........................ - 3 D epartm ent store sales . . . Departm ent store stocks .. Payrolls Per cent change May I960 from LOCAL CHANGES OUTPUT Factory em ploym ent (T otal) .................................. Factory w age in co m e ........ Department Storef Employ ment 5 M ay I960 from mo. ago Factory* - 1 -1 1 - 6 — 1 + b + 5 + 1 1 6 + 2 0 + 8 + 1 + 16 1 + 7 + b + 7 0 - 1 + b + 3 -1 2 — 6 0 + 3 - York ............... — 1 + 1 + 3 + 2 -1 7 - 1 + 2 + 9 + 8 7 + 8 +22 ‘ Not restricted to corp orate lim its of citie s but covers areas of one or more counties. (A d ju ste d for seasonal va ria tio n .
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