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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA 0 BL JR RESERVE DISTRICT JULY z, 1934 Bv RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK uj PI-11 LADELFHiA Business and Banking Conditions in the United States Industrial production increased slightly in May, while factory employ ment and payrolls showed little change. The general level of wholesale prices, after remaining practically unchanged since the middle of February, ad vanced sharply in the middle of June, reflecting chiefly increases in the prices of livestock and livestock products. Production and employment. Indus trial production, as measured by the Board’s seasonally adjusted index, ad vanced from 86 per cent of the 1923 1925 average in April to 87 per cent in May, as compared with a recent low level of 72 last November. Ac tivity at steel mills increased further from 54 per cent of capacity in April to 58 per cent in May, while output of automobiles showed a decline. Lum ber production continued at about onethird the 1923-1925 level. In the textile industries output declined some what, partly as a consequence of sea sonal developments. At mines coal production showed little change in volume, while output of petroleum con tinued to increase. In the first three weeks of June ac tivity at steel mills continued at about the May level, although a decline is usual at this season. Maintenance of activity reflected in part, according to INDUSTRIAL PRODUCTION Index number of industrial production, ad justed for seasonal variation. (1923-1925 average =100.) trade reports, considerable stocking of steel. Output of automobiles declined somewhat, as is usual at this season. Employment in factories, which usually declines slightly between the middle of April and the middle of May, showed little change, while em ployment on the railroads, in agricul ture and in the construction industry increased, as is usual at this season. Increased employment was shown at manufacturing establishments produc ing durable goods, such as iron and steel and non-ferrous metals, while em ployment declined at establishments producing non-durable manufactures, such as textiles and their products. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, has shown a de cline in the spring months, reflecting a reduction in the volume of contracts for public projects. The volume of construction work actually under way has increased as work has progressed on contracts previously awarded. Department of Agriculture estimates based on June 1 conditions indicated unusually small crops of winter wheat and rye and exceptionally poor condi tions for spring wheat, oats, hay and pastures, largely as a consequence of a prolonged drought. The winter wheat FACTORY EMPLOYMENT Federal Reserve Board's index of factory em ployment adjusted for seasonal variation. (1923-1925 average =100.) crop was estimated at 400,000,000 bushels as compared with a five year average of 630,000,000 bushels and an exceptionally small crop of 350,000,000 bushels last season. Rains in early June somewhat improved prospects for forage and grain crops not already matured. Distribution. Total freight traffic increased in May by more than the usual seasonal amount, reflecting in considerable part a larger volume of shipments of miscellaneous products. At department stores the value of sales showed an increase as is usual at this season. Commodity prices. During May and the first three weeks of June wholesale prices of individual farm products fluctuated widely, while prices of most MEMBER BANK CREDIT Wednesday figures for reporting member banks in 90 leading cities. Latest figures are for June 13. WHOLESALE PRICES Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1926*100.) Page One other commodities showed little change. Wheat, after advancing rap idly during May declined considerably in the first three weeks of June. Cot ton continued to advance in the early part of June. In the middle of the month hog prices increased sharply from recent low levels. Automobile prices were reduced in the early part of June, and copper prices advanced. Bank credit. During May and the first half of June there was little change in the volume of reserve bank credit outstanding. As a consequence of expenditure by the Treasury of cash and deposits with the Federal reserve banks and a growth in the country’s monetary gold stock, member bank reserve balances advanced further to a level $1,800,000,000 in excess of legal requirements. In the week ending June 20, however, excess reserves dropped to $1,675,000,000 reflecting an increase in Treasury deposits at the reserve banks in connection with June 15 tax receipts and sales of Govern ment securities. Total loans and investments of re porting member banks increased by $80,000,000 between May 16 and June 13, reflecting a growth in holdings of investments other than United States Government securities and in openmarket loans to, brokers and dealers, while loans to customers declined. Net demand deposits increased by about $400,000,000 during the period. Money rates in the open market con tinued at low levels. The rate on prime commercial paper declined to Y\-\ per cent in June, the lowest figure on record. Business and Banking Conditions in the Philadelphia Federal Reserve District Business conditions in this district generally showed improvement during May, contrary to the usual seasonal change and the preliminary indica tions at the beginning of that month. Industrial production, comprising fac tory and mineral products, expanded about 2 per cent from April to May and the level for the year to date con tinued 20 per cent higher than last year. The value of contracts awarded declined sharply during the month in all types of construction, except for gains in the case of family dwellings and miscellaneous non-residential buildings; operations on old contracts continued at a seasonally higher rate. Distribution of commodities in this district was larger in May than in April and was well maintained in early June. The value of both whole sale and retail sales showed more than usual gains in the month and contin ued ahead of last year, reflecting partly the influence of higher prices. Sales of new passenger automobiles declined a little more than usual, fol lowing an exceptional increase in the previous month. Freight car loadings also registered improvement, owing largely to increased shipments of coal. General employment in twelve branches of industry and trade in creased 2 per cent and earnings 6 per cent from April to May, according to reports from 5,000 establishments em ploying in May nearly 700,000 work ers whose average weekly payroll amounted to $15,200,000. In early June factory employment and payrolls, which account for about 48 per cent of all workers employed in these branches of labor and industry, declined season ally, as indicated by early reports. Demand for fin ished products has fallen off appre ciably since early May as is to be ex pected at this season. Sales in virtually all lines have declined in the month and in many instances even as com pared with a year ago. The volume of textiles sold by local factories again registered the greatest decrease, con tinuing to reflect partly the usual sea Manufacturing. sonal let-down; the volume of advance business at textile plants also has de creased in the month and was notice ably smaller than a year ago. The market for leather and shoes shows customary recessions. Commitments for iron and steel products have been exceptionally large since the early part of the year and in May reached apparently the highest monthly volume in the past three years; but since May buying has slackened considerably. Building ma terials, particularly that type which is used in connection with residential re pairs and construction, have been in fair demand. Although sales on the whole have decreased in the month, they continued larger than a year ago as in the case of other manufactures except textiles. The majority of reports from local producers indicate that price conces sions last month have been more prevalent than at any time this year. The supply of finished products at local plants generally has been reduced INDUSTRIAL PRODUCTION RETAIL TRADE SALES PHILADELPHIA FEDERAL.RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DiSTRICT PERCENT PERCENT MANUFACTURING SALES OF APPAREL AND SHOES COAL MINING" 1929 1930 Page Two 1931 DEPARTMENT STORE SALES-' 1932 1933 1934 1929 1930 1931 1932 1933 1934 since the middle of last month and evi Business Indicators dently continued smaller than a year Philadelphia Federal Reserve District ago. This also seems to be true of raw materials, although lately seasonal Index numbers: percentages of the 1923-1925 average taken as 100. buying, as in the case of certain tex (All figures are rounded from original data) tiles, has been in evidence with a con sequent increase in stocks to be used Adjusted indexes allow for the usual Adjusted for seasonal variation Not adjusted seasonal change which results from an in future manufacturing. uneven distribution of business be Percentage comFactory payrolls in this district rose tween the months of the year. parison in May for the fourth successive month Lnadjusted indexes reflect merely the actual change which may or may not and the number of wage earners re be up to the usual seasonal expecta May Mar. Apr. May May 1934 May Mar. Apr. May To 1933 1934 1934 1934 with mained about the same as in April. tions. date 1933 1934 1934 1934 with The index number of employment, at Month Year year 77, relative to the 1923-1925 aver ago ago ago age, was 24 per cent higher than a year ago and reached the highest level Industrial production............ 71 70 71p + 2 + 16 +21 60 70 70p 69 Manufacturing—total..................... 68 70 71p + 1 + 11 + 17 62 69 68 70p since May 1931. Payrolls, at 62, were Durable or capital goods. . . 49 51 57p + 12 + 63 +59 Consumers’ goods...................... 64 per cent greater than in May 1933 82 84 82p 3 4 + 4 Metal products............................. 54 58 64p + 10 + 81 +82 35 55 57 64p Textile products............. !!!!!. and were very close to the level of the 78 81 73p — 10 — 14 - 0 77 81 70 81 Transportation equipment.... 45 39 40 + 0 + 55 +49 48 27 42 41 first half of 1931. f ood products.............................. 70 74 74p + 1 + 2 + 3 70 72 73 73p Tobacco and products............... 86 In addition to the customary de 91 92 + 0 + 5 + 11 80 83 89 85 Building materials....................... 23 26 32 + 24 + 26 +34 27 20 26 34 Chemicals and products............ clines, the unusual curtailments in 98 105 lllp + 6 + 22 + 18 99 106 113p 92 Leather and products................. 130 127 137p + 8 + 11 + 18 112 133 125 125p textile factories, especially those man Paper and printing...................... 80 80 80 + 0 — 1 + 3 82 81 81 81 Electric power output 190 194 196 + 1 + 2 ufacturing cotton, silk and woolen + 9 194 190 182 178 Industrial use of electricity. . .. 136 134 131 — 2 + 17 +18 115 129 135 134 Coal mining................................... goods, naturally had an adverse effect 106 73 75 + 4 + 69 +51 75 44 88 75 Anthracite...................... | 109 73 76 + 4 + 77 +53 89 76 76 43 on the index of employment and earn Bituminous...................... ’ ’ 78 70 71 + 1 + 23 +35 52 80 64 64 ings. The iron and steel plants, on Employment and wages—Pa. Factory wage earners..................... 0* + 24* +24* 62 — 76 77 77 the contrary, had 4 per cent more Factory payrolls........... ’ 57 + 5* + 64* +61* 38 59 62 Employe-hours (1927-28 = 100) . . 7* 35* + + +37* wage earners on their rolls and 16 per 47 59 60 64 Ceneral—12 occupations: Employment (1932 = 100). . cent larger payrolls at a season when + 2* + 20* +18* 92 109 108 111 < Payrolls (1932 = 100).................. + 6* + 52* +44* 84 122 121 128 their operations usually are cut down. Building and real estate Contracts awarded!—total........... Except for the usual declines at the 5 + 122 +66 30 36 36 16 _ Contracts awarded!—residential. + 3 + 15 +29 12 14 13 14 turn of the year, the volume of em I ormits for building—17 cities.. . + 41 27 + 7 8 6 5 6 — Mortgages recorded—Philadelphia + 126 + 9 -18 10 6 5 11 ployment and payrolls has been ad lteal estate deeds—Philadelphia . . 12 — 25 -21 53 39 40 41 — Sheriff deeds (1930=100) vancing steadily since last spring, and 130 98 109 — 25* — 43* -19* 172 Other deeds (1930 = 100)............. + 21* — 3* -23* 60 55 48 58 during the past few months the spread Writs for Sheriff sales—Pliila. 740 778 + 5 — 36 -19 1287 832 777 817 between these two curves has nar Distribution Retail trade—sales............................ 71 64 69 + 7 + 18 +14 59 69 69 65 Retail trade—stocks.......................... rowed somewhat. Average hourly 62 62 63 + 3 + 16 54 64 64 63 Wholesale trade—sales... 73 75 83 + 11 + 24 +26 69 62 69 78 earnings for manufacturing in general Wholesale trade—stocks.................. 66 67 66 — 1 + 16 57 67 68 65 Life insurance sales........................... apparently reached a higher point in 100 106 103 — 3 + 14 + 7 96 111 118 110 Aew passenger auto, registrations, 60 75 75p — 1 + 43 +20 75 67 113 107p May than at any time since the begin freight car loadings—total. 63 60 61 + 2 + 24 +28 50 61 58 62 Mdse and misc. (64.9% of total) 59 60 60 + 0 + 14 +19 58 ning of 1927 when the collection of 55 63 61 Coal (23.5% of total)................... 85 63 68 + 8 + 45 +44 43 82 62 56 employe-hour data was inaugurated. Business liquidations Number........................... _ 18* 58* -61* 120 71 50 61 On the basis of current reports and Amount of liabilities......................... + 3* _ 117 94 97 — 26* -57* 131 census data it is estimated that all Payment of accounts Check payments................................. 52 70 72 71 68 52 73 70 - 2 + 35 Pennsylvania factories about the mid Rate of collections (actual) Retail trade..................................... + 2 4- 13 26 28 28 29 dle of May had on their rolls approxi Wholesale trade. .................. + 7 + 21 60 67 72 66 mately 803,000 wage earners whose Prices—United States Wholesale (1926=100)................. + 0* + 17* +20* 63 74 74 73 average weekly payroll totaled about Farm products................................ 0* + 19* +36* 50 61 60 60 Foods................................................. + 1* + 13* + 19* 59 67 $16,500,000. A year ago the number 67 66 Other commodities........... 0* + 19* + 19* 66 + 78 79 79 Retail Food (1913 = 100).......... ! ! of workers on the rolls approximated + 1* + 16* +17* 94 108 108 107 Philadelphia.................................... + 1* + 24* +24* 95 117 118 117 Scranton............... 650,000 and their wage earnings aver + 1* + 16* +1C* 99 115 114 115 aged $10,000,000 a week. Preliminary figures for June indicate that about Per cent change from the usual seasonal declines occurred (000,000’s omitted May Feb. Mar. Apr. May in dollar figures) 1933 1934 1934 1934 during that month. 1934 Month Year Output of manufactures during May ago ago increased slightly instead of declining and credit as is usual. Our adjusted index num Banking Federal Reserve Bank ber of productive activity, which com Bills discounted.............................. $ 46 $ 20 $ 17 $ 14 1 12 -14 -74 Other bills and securities............. 141 172 170 169 168 bines proportionately 47 industries, - 1 + 19 Member bank reserves.................. 114 150 196 194 196 + 1 +72 Ratio.................................................. rose from 70 in April to 71 in May, 61.6% 63.1% 68.2% 67.4% 66.9% - 1 + 9 Reporting member banks Loans to customers....................... relative to the 1923-25 average. With 8521 $471 $ 468 $ 463 $ 465 + o -11 Other loans anc. investments . . . 468 570 564 568 563 - 1 +20 the exception of last mid-summer, this Net deposits..................................... 871 988 1036 1039 1035 0 + 19 Bankers' acceptances outstanding. 10.0 level was the highest since the fall of 15.2 15.8 15.1 13.8 - 9 +38 1931. Compared with the extremely * Computed from data unadjusted for seasonal variation. p—Prelimin ary. low points reached in the summer of ! 3-month moving daily average. Page Three OUTPUT OF MANUFACTURES BY CLASSES OUTPUT OF STEEL WORKS and ROLLING MILLS PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PCRCENT CENTS PER. LB. CONSUMERS GOODS PHILA. FED. RES . DISTRICT UNITED STATES DURABLE \ OR CAPITAL GOODS PRICES OF-^ FINISHED STEEL 1929 1930 1932 1933 1934 1930 1931 1932 and the first quarter of 1933, the level was nearly three times as high as rate of production in May was higher the low point reached in the summer by 30 and 37 per cent respectively. of 1932 and the early part of 1933; Manufacturing activity in the country since May the fabrication of metal as a whole showed about the same rel products has been decreasing. ative trend in the past five months and Output of building materials, an in comparison with the last two years other important group in this district, as did production in this district. also indicated a considerable expan The most pronounced improvement sion so far this year. The index num thus far this year has taken place in ber rose to 32 per cent of the 1923-25 the output of such durable or capital average in May as compared with 26 goods as fabricated metal products, in April and 25 a year ago. The re used largely for equipment purposes, cent falling off in operations financed and certain building materials. The by public funds has been offset some index number rose further in May to what by a slight expansion in residen 57 or about 30 per cent higher than it tial building. Other manufacturing was in January and more than twice groups generally registered a favor as high as the record low reached in able change from April to May and March 1933. their current levels continue substan Production of consumers’ goods, as tially higher than last year. typified by finished textiles and,shoes, The decline in the output of electric has increased 12 per cent since the power has not been as large as usual, early part of this year in spite of the so that our seasonally adjusted index decline from April to May. Since the shows a continuous improvement in low point in June 1932, the output of the past three months. The largest consumers’ goods has fluctuated gain from April to May occurred in widely, the May index number being the output of electricity by steam, 82 or 3 per cent lower than in April while the greatest decrease was in that and 4 per cent lower than a year ago. of hydro-electric plants, reflecting the For the year to date, industries pro shrinkage in the water supply. Total ducing heavy goods indicate an im sales of electricity for all purposes provement of 59 per cent, while those were 6 per cent smaller in May than manufacturing products ready for con in April but continued about 5 per cent sumption show an increase of only 4 larger than a year ago. Sales to in per cent as compared with the first dustries, which are the largest con five months of last year. sumers of electric power, declined The textile industries, which repre sent about 26 per cent of the output somewhat more than is customary for covered by our index number, regis May. The volume of anthracite tered the least favorable comparison Coal. with last year. In contrast, the iron mined during May was about the same and steel industry, whose relative im as in April; since output usually de portance in this district is about 22 per clines in this period, colliery operation cent in point of production, showed an in May showed an improvement of 4 exceptional rise between January and per cent. Both production and ship May in addition to an even sharper in ments in June showed seasonal de crease last summer, so that the May creases. For the year to date the vol Page Four 1932 1933 193.4 ume of output and deliveries exceeded that of last year by over 50 per cent and were the highest since 1929. Accompanying a high level of out put, average weekly payrolls for 1934 to date, still the highest since 1931, were 58 per cent above last year; the number of wage earners, while not as high as in 1932, was 23 per cent more than last year. Production and shipments of bi tuminous coal for the first five months this year continue to be the greatest since 1931. Output in May was un changed from April, while usually a slight decline occurs at this time. As in most other years, shipments in creased in this period. Corresponding to the trend in production, average employment and earnings for the year to date continue to be the highest in about four years. Total industrial consumers’ stocks as of May 1 were 4 per cent smaller than a month be fore. All classes of consumers showed a decrease, with the exception of ce ment mills, which increased their sup ply of coal by 17 per cent; the sharpest drop was at beehive coke ovens. Building and real estate. Activity in the construction and contracting in dustry in Pennsylvania showed a sub stantial increase between April and May, continuing an upward trend since early this year. The most pro nounced increases in employment, pay rolls and working time occurred in the construction and maintenance of streets and highways, although moderately large gains also were shown in build ing and general contracting operations. Reports from some 1100 contractors showed increases from April to May amounting to 17 per cent in employ- ment and 18 per cent in wage payments and working time. The value of contract awards de creased sharply in May, contrary to seasonal tendency, but showed some gain in early June. Contracts let for one and two-family dwellings and sun dry non-residential buildings alone showed an increase in this period, while engineering construction, which had been increasing for several months, declined sharply. The aggre gate value for all construction in the five months since January 1 was 93 per cent larger this year than last, with educational buildings, apartments and hotels and public works and utili ties showing the largest relative gains. Per cent change from Building contracts Philadelphia Federal Reserve District May 1934 (in Sl.OOO’s) Month ago 5 mo8. 1934 from 5 mos. 1933 18.5.0 1,726.7 -25 +35 +310 + 8 758.7 419.2 569.5 603.2 - 9 -50 -23 +33 + 26 + 68 +584 - 41 Total building. . Public works and utilities............... 4,262.3 - 3 + 28 2,472.9 -67 +329 Grand Total. . . $6,735.2 -44 + 93 Residential: Apts, and hotels. Family houses.... Non-residential: Commercial.......... Factories................ Educational.......... All other................ S Source: F. W. Dodge Corporation Wholesale prices of building ma terials, which have shown an upward trend for more than a year, increased further in May, reaching the highest level since the fall of 1930, according to figures compiled by the Bureau of Labor Statistics for the country as a whole. Following a rising tendency for sev eral months, ordinary conveyances de clined rather sharply during May in the Lancaster and York areas, but showed further gains in the Wilkes Barre, Scranton and Johnstown terri tories. In Philadelphia and Harris burg the number of ordinary deeds as well as the value of mortgages re corded increased appreciably in May. Agriculture. Farm activity in this district has been progressing at about the normal seasonal rate. Heavy rains in the third week of June were espe cially beneficial in the central and western counties, where an inadequate moisture supply was retarding the growth of crops and making field work extremely difficult. The condi tion of pastures and meadows has im proved noticeably. Tobacco planting is nearly completed SALES OF NEW PASSENGER AUTOMOBILES and first cuttings _REGISTRATIONS of hay are being PERCENT :< UNITED STATES made under gen erally favorable conditions. Truck crops, grown chiefly in the east PHILADELPHIA ern and southeast FEDERAL RESERVE ern counties, seem DISTRICT to show the usual normal rate of growth. But fruit prospects continue poor and there are indications that this 1929 1930 1931 1932 1934 year’s crop will be light. Output of dairy products, while est products, which more than offset showing some increase in May, con decreases in the volume of grain, ore tinued in smaller volume than a year and livestock loadings. Deliveries of ago. Milk and cream receipts in the merchandise and miscellaneous com Philadelphia area increased more modities, which constitute nearly 65 sharply than usual from April to May per cent of all car loadings in this sec and for the first time this year showed tion, changed little in this period. a gain over last year. At four prin Business at wholesale showed an un cipal markets, receipts of eggs from usually large increase in May, when this section were nearly 20 per cent the dollar sales of eight reporting lines larger in the first four months this year combined proportionately, on a sea than last, while those of dressed poul sonally adjusted basis, were 11 per try were 15 per cent smaller. cent larger than in April. Preliminary The wholesale price index for reports show that a relatively high all agricultural commodities in this sec level of activity continued throughout tion stood at 90 per cent in May, rela tive to the base period 1910-14, as the first half of June. For the year to compared with the country’s average date the total value of wholesale sales of 74 per cent. During the past was 26 per cent larger than last year. twelve months the local index has Higher prices undoubtedly account for risen by more than 40 per cent, while some of the increase in both the value in the United States as a whole the of sales and stocks of goods. Inventories at wholesale declined 3 gain in this period amounted to less than 20 per cent. Detailed compari per cent during May but were 16 per sons follow: cent larger than a year ago. The rate of stock turnover was 15 per cent more rapid in the first five months this Per cent change May 1934 compared with a year ago Wholesale prices year than last. Collections, after de of farm products clining somewhat in April, increased Pennsylvania United States 7 per cent in May, resuming the up ward trend of recent months; they All commodities___ +40.6 +19.4 Grains.................... + 7.5 +25.8 were 21 per cent more prompt than a Fruits and vegetables................ +69.9 +54.4 year ago. Meat animals... . + 14.1 - 3.1 Dairy products. . +85.7 +20.6 Dollar sales of department, apparel, Poultry and shoe and credit stores combined in products........... + 15.0 +11.3 Miscellaneous.... + 3.3 +25.5 creased 7 per cent in this district dur ing May, when the usual seasonal Source: XJ. S. Department of Agriculture change is taken into consideration. All Distribution, trade and service. The lines, except credit stores whose May movement of commodities in this sec sales declined, reported a larger dollar tion showed somewhat more than the volume of business than in April. In usual rate of gain from April to May early June retail trade activity showed and increased further in early June. some further gain. As compared with Total freight car loadings in May im a year ago, the value of May sales was proved about 2 per cent, reflecting 18 per cent larger, while for the year larger shipments of coal, coke and for to date it exceeded last year’s by 14 Page Five per cent, without allowance for the in fluence of higher prices. Collections improved somewhat in the month and continued about 13 per cent more satisfactory than a year be fore. The ratio of collections to re ceivables on open or regular charge accounts of department stores so far this year was almost 13 per cent higher and the percentage collected on installment accounts was nearly 20 per cent higher than last year. Collections on open accounts in the country were about 17 per cent higher and on in stallment accounts 13 per cent higher. Ratio of collections to receivables Department stores Philadelphia Federal Reserve District Open or regular charge accounts 1933 January..................... February................... March........................ April.......................... May............................ 1934 January..................... I ebruary................... March........................ April........................... May............................ Installment accounts 3i.O 29.8 31.5 32.2 V2, .4 13.1 13.0 13.6 41.4 32.5 35.5 36.0 37.2 14.3 13.7 16.3 16.2 16.0 The rate of stock turnover was one per cent higher in the first five months this year than last, all lines wit'll the exception of women’s apparel and credit stores reporting a more rapid movement of goods. The dollar vol ume of inventories at retail establish ments decreased less than usual from April to May. As compared with May of last year the value of stocks was 16 per cent higher, reflecting partly higher prices. Sales of new passenger automobiles as measured by registrations showed some decrease in May, following an upward trend since early this year. In the five months this year as compared with last sales were 20 per cent larger. The movement of commercial trav elers throughout this district decreased Hotel business Philadelphia Federal Reserve District Per cent change May 1934 compared with Jan. 1May 31 1934 with May 31 1933 April 1934 May 1933 Capacity............................... Room occupancy............... Per cent of capacity used: May 1934............ 45.8 April 1934........... 47.8 May 1933............ 37.3 Revenue from: Guest rooms.................... Food.................................. Other sources.................. - 0 - 4 - 0 +23 - 6 -11 -15 +20 +23 +54 +13 +21 +75 Total revenue............. -10 +29 +27 Six DigitizedPage for FRASER from April to May as indicated by the accompanying table. Banking conditions. Reserves of member banks as a whole continue much in excess of legal requirements; over the past month there has been a further reduction in borrowings from the reserve bank. Commercial loans have not changed materially at the re porting member banks. Treasury withdrawals from deposi tary banks were unusually small in the four weeks ending on June 20, but quarterly installments on income taxes came due and over 8 millions of cash payments were made for new securi ties, so that the weekly average of re ceipts was larger than in the preceding period. Nevertheless, local disburse ments continued heavy and exceeded government receipts by 2J4 millions. These funds, together with those pro vided by a decline of 6 millions in nonmember deposits at the reserve bank, enabled the banks to reduce their borrowings here by nearly 4 millions, to meet an unfavorable bal ance in interdistrict commercial trans fers, and to add 2 millions to their re serve deposits. Currency was a factor of minor importance, as the outflow prior to Memorial Day and, to a smaller extent, in the second week of June was approximately equalled by amounts returned in the other two weeks. The decline in bills discounted at this bank was from 11 millions on May 23 to 7 millions on June 20, the lowest amount in many years; other earning assets show practically no change. The ratio of the bank advanced from 67.2 to 68.2 per cent. In the last four weeks the outstand ing credit of the weekly reporting member banks has increased from 1,023 to 1,043 millions. Loans on stocks and bonds to customers declined from 211 to 208 millions, while com mercial accommodation, as indicated by other loans to customers, continued to show little fluctuation. Loans to the open market increased by several millions. In the first three weeks the banks’ holdings of United States se curities declined from 281 to 272 millions but, with the allotment of new issues in the final week, there was a rise to 292 millions; other securities show an increase from 243 to 252 millions, the highest point with one exception since February of last year. Total deposits increased 11 millions; this was due chiefly to a rise in gov Reporting member banks (000,000’s omitted) Loans to customers: On securities............. All other..................... Loans to open market. United States securities............................ Other securities............ Total loans and investments.... Net demand deposits. Time deposits............... Government deposits.. Amounts due from banks.......................... Amounts due to banks. June 20, 1934 $ 208 252 39 May 23, 1934 $ 211 253 35 June 21, 1933 $ 259 254 6 292 252 281 243 250 247 $1,043 670 308 73 $1,023 667 323 50 $1,016 587 264 59 160 229 157 219 132 163 ernment deposits incident to new se curity issues, as a decline of 15 mil lions in time deposits much exceeded an increase of 3 millions in net demand deposits. Amounts due to and due from banks are at the highest points since 1931. Reserve balances of licensed mem ber banks in this district rose from an average of 191 millions in April to 196 millions in May. The margin above legal requirements was 79]A millions in May, as compared with 76 millions in April and 7j4 millions a year ago. Reserves of country banks were 53 per cent and banks in Phila delphia 79 per cent above requirements. The rate of turnover of demand and time deposits at a group of banks in Philadelphia declined a little from April to May, but this decrease was less than in any of the four preceding years. The May figure was materially higher than a year ago. The number of licensed member banks in this district at the time of reopening after the bank holiday in March 1933 was 547. By the end of the year this had expanded to 606, and the number on June 22, 1934 was 643; seven were added to the list in the month ending on that date. RESERVE BANK CREDIT AND THE FACTORS WHICH AFFECT IT Philadelphia Federal Reserve District May 24 to June 20 inclusive—in millions of dollars +is> Sources of funds Reserve bank credit extended in this dis trict.................................................................... —3.8 Commercial and financial transfers (chiefly interdistrict)..................................................... —2.6 Treasury operations.......................................... +2.5 Uses of funds Currency demand.............................................. Member bank reserve deposits...................... Nonmember deposits at reserve bank......... Unexpended capital funds of reserve bank. —0.3 +2.1 —6.1 +6.4 Total............................................................. -3.9 Total............................................................. -3.9 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 the district. Reflecting chiefly declines in bills covering domestic warehouse credits and exports, the national total of outstanding bank ers’ acceptances de clined from 613 to 569 millions during May. Acceptances of banks in this district decreased from $15,100,000 to $13,800,000, but ex ceeded the figure of a year ago by 38 per cent. Federal Reserve Philadelphia (Dollar figures in 'millions) 20, 1934 Four weeks Bills discounted.... * 6.9 Bills bought.............. 0.5 United States securities........................ 167.1 Other securities........ 0.5 Total bills and securities........... $175.0 Federal reserve note circulation............. 247.1 Fed. res. bank note circulation—net. . 5.0 Member bank reserve deposits. . . . 205.7 Deposit U. S. Treas urer—general account...................... 8.8 Foreign bank deposits...................... 0.4 Other deposits.......... 11 .8 Total reserves........... 323.0 Reserve ratio............ 68.2% One year -S3.9 0 —$30.7 - 0.2 0 0 + 25.1 0 —$3.9 -$ 5.8 + 1.1 + 8.1 - 1.0 - 0.5 + 2.1 + 89.3 + 7.8 + + + - 0.6 + 2.0 + 88.8 + 5.3% 0.2 6.1 7.9 1.0% MILLIONS % MEMBER BANKS’ RESERVE DEPOSITS' 180 +r —j----------- ——-— « . ii 150 i fv-Av' J[ 120 -A/L f • (All figures are rounded from original data) Manufacturing indexes Employment* (Indexes are percentages of the 1923-25 average taken as 100. Total and group in dexes are weighted propor May 1934 tionately.) index Per cent change from All manufacturing. . . Iron, steel and prods.... Non-fer. metal prods.. . Transportation equip.. . Textiles and clothing... Textiles......................... Clothing........................ Food products................. Stone, clay and glass... Lumber products........... Chemicals and prods.. . Leather and products. . Paper and printing........ Printing........................ Others: Cigars and tobacco... Rubber tires, goods. . Musical instruments. 77 66 90 63 94 90 107 101 75 44 92 92 89 87 63 102 50 +24 +43 +36 +40 + 9 +14 - 5 +14 +27 +16 +37 -0 May Apr. May Apr. 1933 1934 1933 1934 -0 +0 76 + 64 + 124 + 51 + 72 + 39 + 40 + 35 + 19 + 54 + 36 + 55 + 41 + 23 78 + +1 46 79 37 + 15 + 7 - 6 - 6 + 71 +10 +4 +4 -1 -6 -6 -5 -1 +6 +7 -1 + 12 + 13 +0 +6 + 8 +24 +52 * Figures from 1,850 plants. -2 -2 62 69 78 45 77 74 88 83 39 29 79 81 20 + 5 +16 +12 + 0 - 7 - 7 - 9 + 3 +10 +11 +35 +75 +32 +90 -12 - 7 -25 - 3 +32 + 15 +50 - 4 + 7 +13 + 7 -13 -30 +49 +16 - 5 + 5 + 1 - 6 - 6 - 5 + 1 + 8 +14 + 5 + 1 + 5 +6 + 1 - 0 +0 + 1 - 1 - 1 t Figures from 1,541 plants. 7 * Indexes of twelve occupations Employment BILLS DISC0UNTE D / (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) 30 ^.............. May 1934 index 0 1932 19 33 1934 Percentage change—May 1934 from May 1933 Allentown............. Altoona.................. Harrisburg........... Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... Y ork...................... May 1934— per cent change from Per cent change from May 1934 index May Apr. 1933 1934 hourst l ^ 60 City areas* Employe- Payrolls* 2.8 FEDERAL RESERVE BANK OF PHILADELPHIA 210 Employment and Payrolls in Pennsylvania Changes in— Manufacturing Employ ment Wage payments +23 - 7 +32 +61 +29 +27 +25 +ii +35 + 3 +35 +31 +28 + 72 + 71 + 86 +136 + 61 + 47 + 83 + 26 + 57 + 29 + 53 + 35 + 44 Building permits (value) + 93 +152 - 64 + 73 +279 - 48 - 19 +140 + 10 + 27 + 126 + 40 + 3 Debits Retail trade sales + 6 +21 + 14 +60 +10 +42 +20 +22 +1 +33 + 10 +48 +26 +12 +13 +29 +n + 14 +n +2) +28 +14 +18 General index (weighted).. Manufacturing............................. Anthracite mining.................... Bituminous coal mining............ Building and construction........ Quarrying and non-met. mining Crude petroleum producing. . . Public utilities.............................. Retail trade................................... Wholesale trade.................... Hotels................. Laundries..................................... Dyeing and cleaning.................. 111 120 102 124 87 115 189 90 109 102 104 95 109 Per cent change from May 1933 April 1934 +20 +24 +48 +39 - 1 +29 +80 - 2 +17 + 8 +11 + 4 + 9 + 2 - 0 + 9 + 3 +17 +16 + 2 + o + 2 + 0 + 1 + 2 + 4 Payrolls May 1934 index 128 152 119 157 70 154 178 87 107 96 100 95 125 Per cent change from May 1933 April 1934 + 52 + 64 + 113 + 105 + 10 + 84 + 7? + 4 + 24 + 9 + 23 + 17 + 36 + 6 + 5 +24 - 1 + 18 +24 + 3 - 1 + 3 - 1 + 2 + 4 + 5 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT 12 MANUFACTURING AND NON-MANUfACTURING INDUSTRIE* +19 May 1934 from April 1934 Allentown............. Altoona................. Harrisburg........... Johnstown............ Lancaster............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... York...................... + + “ - 3 2 2 4 1 2 0 -10 + i - 7 + 2 - 1 + 2 + 7 + 0 + 2 + 13 + 4 2 + 8 8 + 6 1 + 1 1 + 3 + 54 +191 - 72 + i + 21 + 20 - 7 + 42 +338 +105 + 80 - 27 + 98 - 8 +1 - 4 +20 - 5 +1 + 7 - 0 -11 + 6 + 7 - 2 — 7 * Area not restricted to the corporate limits of cities given here. EMPLOYMENT -10 +21 + 8 +25 +31 + 7 + 0 +28 + 2 - 0 PAYROLLS +19 932 193 3 1934 Page Seven Index numbers of individual lines of trade and manufacture WHOLESALE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT Philadelphia Federal Reserve District ADJUSTED FOR SEASONAL VARIATION TO TAL IttS'ESIWft-IIM STOCKS sales'^- Index numbers: percentages of the 1923-1925 average taken as 100 (All figures are rounded from original data) Adjusted indexes allow for the usual seasonal change which results from an uneven distribution of business be tween the months of the year. Not adjusted Adjusted for seasonal variation BOOTS AND 5HOES Percentage com parison SALES actual change which may or may not be up to the usual seasonal expecta May Mar. Apr. May tions. 1933 1934 1934 1934 Month Year ago ago To date with year ago May Mar. Apr. May 1933 1934 1934 1934 V............. DRUGS 125 \ Retail trade Sales Total of all stores........................... Department................................. Men’s apparel............................. Women’s apparel....................... Shoe............................................... Credit............................................ STOCKS v V SALES 59 71 59 69 50 60 78 100 62 81 54 62 64 62 51 78 62 73 69 66 59 90 80 67 + 7 + 7 +16 +15 +30 - 8 + + + + + + 55 48 56 81 56 56 62 54 57 84 58 72 63 56 61 91 57 72 + + + + + 16 + 15 + 9 + 13 3 + 29 18 14 19 15 30 22 + + + + + + 14 14 21 14 18 33 59 57 46 81 69 57 69 64 59 117 81 55 65 60 49 92 69 71 69 65 55 93 89 70 54 48 56 82 57 54 64 56 57 93 58 74 64 56 61 90 59 72 63 55 61 92 58 70 DRY Stocks of goods 62 54 57 86 57 73 3 3 6 8 + 0 -A u OOOS STOCKS ,.**» 25 ELECTRICA + i* +11 +69 - 3 + 8 +66 - 1 - 1 - 8 + 5 + + + + + + + + + 24 26 16 35 51 15 25 40 34 + + + + + + + + + 26 10 14 43 32 26 34 76 35 62 56 75 32 57 91 42 21 50 SUPPLIES 1.51 1.50 Wholesale trade 66 73 75 83 57 48 42 71 75 81 90 87 34 46 42 45 74 66 68 113 92 107 107 105 38 39 48 48 25 38 38 35 51 59 65 68 ------- V,, ! SALES Rate of stock turnover Sales Total of all lines............................. Boots and shoes......................... Drugs............................................. Dry goods.................................... Electrical supplies..................... Groceries...................................... Hardware..................................... Jewelry.......................................... Paper............................................. J /------Ya/"\ May 1934 with 69 54 85 42 57 98 38 29 62 y% V 69 78 45 70 90 87 37 43 62 86 98 104 50 53 25 29 65 67 5T0CKS V / V/ ■ A SALES GROC ERIES Stocks of goods 57 67 66 23 20 21 22 100 109 112 112 31 48 50 48 55 71 88 93 75 75 74 73 59 77 62 62 43 53 52 48 58 60 60 61 + + — + — 3 o 3 6 l — 8 + 2 + 16 7 + 12 + 56 + 69 2 + 5 + 11 + 4 57 22 101 31 52 71 46 58 67 68 65 22 21 21 111 113 113 49 50 48 69 86 88 77 74 70 81 66 63 49 50 51 62 60 60 SALES STOCKS'' Rate of stock turnover + 15* Output of manufactures Pig iron.................................................. 16 28 32 41 Steel........................................................ 31 51 54 63 Iron castings........................................ 27 43 44 43p Steel castings....................................... 28 39 58 66 Electrical apparatus.......................... 48 68 74 74 Motor vehicles..................................... 10 17 11 11 Automobile parts and bodies.......... 32 63 56 39 Locomotives and cars........................ 8 15 17 22 Shipbuilding......................................... 67 106 90 103 Silk manufactures............................... 104 105 101 85 Woolen and worsteds........................ 54 45 41 39 Cotton products.................................. 40 42 44 43 Carpets and rugs................................ 40 51 50 51 Hosiery.................................................. 125 113 117 112 Underwear............................................ 152 89 106 109 Cement.................................................. 42 26 35 49 Brick....................................................... 23 27 31 34 Lumber and products........................ 17 18 17 21 Slaughtering, meat packing............ 99 82 99 94 Sugar refining...................................... 72 84 96 66 Canning and preserving................... 40 55 60 63p Cigars..................................................... 87 85 90 91 Paper and wood pulp........................ 56 58 58 60 Printing and publishing................... 86 84 84 84 Shoes....................................................... 154 138 137 149 Leather, goat and kid....................... 95 122 118 126p Explosives............................................. 37 69 83 89 Paints and varnishes......................... 68 67 63 68 Petroleum products........................... 133 132 145 150p Coke, by-product............................... 55 85 85 91 * Computed from data unadjusted for seasonal variation. DigitizedPage for FRASER Eight 1.94 2.23 HARDWARE ■00 STOCKS +29 +17 - 3 + 13 - 0 + 3 -31 +31 + 14 -15 - 5 - 1 + 2 - 4 + 3 +42 + 10 +18 + 6* -■6 -31 + 5 + 0 + 3 - 0 +158 +101 + 61 +137 + 52 + 8 + 20 +183 + 54 _ 18 — 28 + 8 + 27 10 — 28 + 19 + 50 + 20 1* — 5 8 — + 56 + 5 + 6 2 + + + + + + 9 — 7 + 32 8 8 3 +139 + 0 + 12 7 3 + 66 +135 + 102 +117 +169 + 57 + 15 +119 + 81 + 17 + 3 - 9 + 26 + 63 + 3 - 28 + 28 + 36 + 39 + 1* - 4 + 10 + 55 + 11 + 16 + 1 + 9 + 28 + 76 + 19 + 7 16 33 28 29 45 13 34 8 69 99 50 39 39 125 153 47 24 16 88 98 89 31 84 56 87 140 87 38 72 133 + 61 57 p—Preliminary, 32 36 43 55 56 66 46 46 45p 44 59 68 63 64 68 18 13 14 69 61 41 17 18 22 110 92 106 108 99 82 43 37 36 45 45 42 51 48 49 117 117 112 97 103 110 20 34 56 26 33 36 17 19 17 85 82 87 78 98 94 129 125 82 49 50 51p 78 82 88 59 59 60 86 86 85 146 137 136 121 114 115p 69 83 90 68 66 72 131 144 149p 88 88 95 V ---------------- - A SALES'' JEW :lry \ /--vcr, . STOCKS v“V \l -•** _________, SALES ___ V PAF ER */“**•*,.. STOCKS .............................. \ A SALES'> >931 1932 1933 1934
@FedFRASER