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------ f--------TkE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT JUNE i, 1932. By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Industrial activity and factory em ployment declined substantially from March to April, although usually little change occurs at this season. Pur chases of government securities by the Federal reserve banks have continued during April and the first three weeks of May and there has been a con siderable growth in the reserves of member banks. Production and employment. Volume of industrial production, as measured by the Board’s seasonally adjusted index, decreased from 67 per cent of the 1923-1925 average in March to 64 per cent in April. Reductions in ac tivity were reported for many leading industries, with sharp declines at cot ton and woolen mills and at bituminous coal mines; in the automobile industry output increased from the low level of March by more than the usual seasonal percentage, and in the steel industry, where activity had declined from early February to the middle of April, pro duction increased somewhat between the middle of April and the third week of May. INDUSTRIAL PRODUCTION PERCENT PtR CENT mo 1927 1928 1929 1930 1931 during this period. Sales by depart ment stores increased considerably in April. Wholesale prices. Wholesale prices of commodities declined from 66 per cent of the 1926 average in March to 65.5 per cent in April, according to the Bureau of Labor Statistics, and in the first three weeks of May further decreases in the prices of many lead ing commodities were reported. Downward movements in textiles, nonferrous metals, and imported raw ma terials, as well as in most domestic BUILDING CONTRACTS AWARDED Distribution. Freight car loadings of merchandise showed little change in volume from March to April, con tinuing at the level prevailing since January, although increases are usual MEMBER BANK CREDIT Indexes based on three-month moving averages of F. W. Dodge data for 37 eastern States, ad justed for seasonal variation. (1923-1925 aver age = 100.) RESERVE BANK CREDIT 1932 Index number of industrial production, adjusted for seasonal variation. (1923-1925 average = 100.) The number of wage earners em ployed at manufacturing establish ments declined further between the middle of March and the middle of April and there was a substantial re duction in factory payrolls. Large de creases in employment were reported for the iron and steel, machinery, and textile industries, while the volume of employment in the food and leather industries showed the usual seasonal changes. Daily average value of building con tracts awarded during April and the first half of May, as reported by the F. W. Dodge Corporation, showed a seasonal increase over the first quar ter. A substantial increase was re ported for public works and public utilities, while residential building continued at the low level of the first quarter, showing none of the usual seasonal expansion. Monthly averages of weekly figures for reporting member banks in leading cities. Latest figures are averages of first three weeks in May. Monthly averages of daily figures for 12 Federal reserve banks. Latest figures are averages of first 23 days in May. Page One agricultural products, except wheat, were offset in part by increases in the prices of coffee, petroleum, and pe troleum products. Further purchases of U. S. Government securities by the Federal reserve banks were made dur ing April and the first three weeks in May, and on May 18 total holdings were $1,466,000,000. The funds placed in the market through these purchases between April 6 and May 18 were used to the extent of $170,000, 000 in a further reduction of member bank indebtedness to the reserve Bank credit. banks; and to the extent of $122,000, 000 in meeting a demand for gold from abroad; at the same time mem ber banks accumulated reserve bal ances considerably in excess of legal requirements. During May the de mand for currency, which had de clined in April, increased somewhat, contrary to usual seasonal movement. Loans and investments of reporting member banks in leading cities, which had declined continuously until the middle of April, showed little net change between April 13 and May 18. The banks’ investments increased by nearly $300,000,000, chiefly in New York City, while loans declined by about an equal amount. There was also a growth in net demand deposits, which reflected in part an increase in bankers’ balances deposited in New York City banks. Money rates in the open market con tinued easy. Rates on commercial paper were reduced about one half per cent to a range of 2J4-3 per cent for prime names, and the offering rate on 90-day bankers’ acceptances, which had advanced to \l% per cent in the / first week of May, declined on May 11 to the previously prevailing rate of y% of one per cent. Business and Financial Conditions in the Philadelphia Federal Reserve District General business activity has de clined since the middle of last month, reflecting partly the usual tendency characteristic of this season. In April retail trade showed a rather excep tional gain over the previous month, while sales at wholesale declined; the dollar volume of both was nearly onequarter less than a year ago, a fact which coincides with a drop in prices of large proportions. Output of manu facturers continued downward, reach ing in April a new low level. Coal mining increased, although for the year to date, total volume was considerably smaller than last year. Awards of con tracts for non-residential buildings were larger, while those for dwellings were smaller in April than March. Farming has progressed at about the usual rate. Industrial employment in April was reduced further, except for building and some occupations, largely service in character. Wage earnings declined in all industrial occupations, except building, anthracite, quarrying, laun dries, and dyeing and cleaning estab lishments. During the past month member bank loans to customers have declined further. Currency demand changed little, but the banks gained funds from other districts, probably owing in part to investment sales, and they reduced their borrowings from the reserve bank. Rates on prime commercial loans at large city banks continue practically unchanged. Page Two Conditions in the prices and partly a smaller volume of manufacturing industry reflect a fur business. Continued weakness in wholesale ther curtailment of activity, owing partly to seasonal declines in many commodity prices is evidenced almost leading lines. Sales of factory prod uniformly by reports from all lines of ucts have continued greatly reduced manufacture. The sharpest recessions from last year’s volume. Most of occurred in average prices of hides, the reports show a marked decrease textile and chemical products. The in unfilled orders for manufactures general level of wholesale prices in from a month ago and as compared April was almost 13 per cent lower than a year ago; the decline in manu with last year. With a few exceptions, stocks of factures was somewhat smaller than finished goods and raw materials car the general level which includes farm ried by local manufacturers declined products and foods. Factory employment in this district in the month, continuing the down ward tendency of several months. in April showed a drop of 4 per cent, Figures recently released by the De and wage payments 10 per cent as partment of Commerce indicate that compared with March; declines in national stocks of manufactures at the other manufacturing centers, particuend of March were 3 per cent smaller than a MANUFACTURING AND ELECTRIC POWER PHILADELPHIA FEDERAL RESERVE DISTRICT year ago; sup PERCENT IS >3-25 AVG.rlOO plies of raw ma terials, on the ELECTRIC 0WER 175 , A i '• USED BY INCHJSTRIES other hand, were r* * i 9 per cent greater ,y aA >. 150 v-y y*V.< than on March • v% A . /; ’ 1 v vV aA/A 31, 1931. —X/\ 9 Collections in 125 * the majority of lines were smaller JUCTIVE^ 100 ____ PRO in April than \CTIVITY March; compared 75 with a year ago, they also were re SEASONAL VARIATIONS ADJUSTED FO 50 duced, reflecting 1927 1928 1929 1930 1931 1932 partly lower Manufacturing. larly in the East, were equally severe, Business Indicators and in the country as a whole, average Philadelphia Federal Reserve District employment in this period decreased 4 per cent and wage earnings over 7 per Index numbers—expressed in percentages of 1923-1925 average, which cent. Compared with a year ago, em index is taken as 100 ployment in this district was 18 per “Adjusted” for thenumbers make allowance usual seasonal changes which result from an cent and payrolls 39 per cent less, re uneven distribution of business Adjusted for seasonal variations Not adjusted flecting the continuance of depressed between the months of the year. industrial conditions. Except for oc They are the most significant indexes because they show im Percentage comparison casional variations, the trend in fac provement or decline beyond the tory employment and payrolls in Penn level usually to be expected. Apr., 1932, sylvania has been sharply downward 4 “Unadjusted” indexes reflect Apr., Mar., Apr., with months Apr., Mar., Apr., in the past two years. Since the mid merely the actual changes which 1931 1932 1932 1932 1931 1932 1932 may or may not be up to the dle of 1930, this trend has been more with 4 usual seasonal expectations. Month Year months acute in payrolls than in employment, 1931 ago ago and the spread between the two has been growing wider. This divergency Productive activity Manufacturing—total................. 85.1 63.0 60.8 - 3.5 -28.6 -20.1 may be attributed largely to a fairly 83.1 63.6 59.4 Metal products......................... 78.3 39.1 36.6 - 6.4 -53.3 -43.1 76.6 39.7 35.6 continuous curtailment of operating Textile products....................... 90.1 69.6 68.2p - 2.0 -24.3 -12.5 85.6 72.6 64.6p Transportation equipment... time and to reductions in wage rates 61.9 50.1 49.2 - 1.8 -20.5 -12.0 66.5 53.2 51.8 Food products.......................... 80.6 71.4 71.9p 4- 0.7 -10.8 -10.0 79.5 71.4 71.5p which are reflected in the total of wage Tobacco and products............ 104.0 73.8 78.3 + 6.1 -24.7 -19.0 94.8 68.1 71.4 Building materials................... earnings. 47.8 32.5 28.3 -12.9 -40.8 -30.5 47.7 28.1 28.1 Allied chemical products.... 101.9 88.8 85.5p - 3.7 -16.1 -10.8 103.4 89.1 86.6p Output of manufactures declined Leather and products............. 133.1 114.1 107.7p - 5.6 -19.1 -10.9 131.2 117.1 106.1p more sharply than is common for Paper and printing.................. 103.7 89.5 83.8 - 6.4 -19.2 -14.6 105.7 91.3 85.4 Electric power output............ 197.1 184.3 188.6 + 2.3 - 4.3 - 1.7 193.2 188.0 184.8 April. Our index number, which Elec. pwr. used by industries.. 132.4 119.6 126.2 + 6.5 - 4.7 - 6.3 133.7 113.6 127.5 takes account of the number of work Factory employment Penna. . . - 4.3* -18.2* -14.8* 79.1 67.6 64.7 ing days and of seasonal changes, in Factory wage payments Penna, -10.4* -40.6* -32.3* 69.9 46.3 41.5 April was 61 per cent of the 1923-25 Coal mining................................. 81.5 78.1 79.Op + 1.2 - 3.1 -17.9 83.4 65.5 81,0p Anthracite J.............................. 83.2 82.1 82.1 0.0 - 1.3 -16.6 86.5 67.3 85.4 average, establishing a new low record Bituminous.............................. 71.1 53.9 60.3p +11.9 -15.2 -27.6 64.7 55.0 54.9p for the past decade. Compared with Building and real estate the March index of 63, a further de Contracts awardedf—total. . . 59.9 36.7 33.6 - 8.4 -43.9 -44.7 70.1 34.9 39.3 Contracts awarded—residential.. 36.9 27.5 16.3 -40.7 -55.8 -40.9 cline of over 3 per cent occurred as 44.7 24.2 19.7 Permits for building.................... 35.8 8.0 19 4 +142.5 -45.8 -36.4 50.5 10.1 27.4 against a drop of nearly 5 per cent in Mortgages recorded in Phila. .. 29.7 41.0 33.3 -18.8 +12.1 -27.3 31.2 42.6 35.0 Real estate deeds recorded in the national index number; last year Philadelphia.......................... 59.1 57.0 64.9 +13.9 + 9.8 - 0.4 58.5 57.0 64.3 this bank’s index stood at 85, or 40 per Exclusive of Sheriff deeds (1930=100)........................... cent higher than this year, and the + 6.4* - 2.3* - 7.7* 79.4 72.9 77.6 Sheriff deeds (1930=100)___ +75.1* +35.5* +15.6* 134.8 104.3 182.6 national index of 88 was about 38 per Writs for Sheriff sales in Phila. 971.5 1315.3 1039.9 -20.9 + 7.0 +10.7 1020.1 1341.6 1091.9 cent higher than in April this year. Distribution The sharpest reductions from a year Retail trade—sales...................... 86.8 61.2 66.4 + 8.5 -23.5 -24.6 89.2 59.7 65.9 Retail trade—stocks.................... 75.1 62.9 61.4 - 2.4 -18.2 ago occurred in the output of metal, 78.3 65.0 64.0 Wholesale trade—sales............... 80.0 62.5r 60.8 - 2.7 -24.0 -19.1 74.4 58.7r 56.7 textile, tobacco and leather products, Wholesale trade—stocks............ 82.3 69.Or 68.3 - 1.0 -17.0 82.4 69.6r 68.4 Freight car loadings (Allegheny building materials, transportation district)....................................... 77.2 58.8 57.8 - 1.7 -25.1 -22.9 74.9 55.9 56.1 equipment, and paper and printing. Life insurance sales...................... 129.1 108.4 93.5 -13.7 -27.6 -12.3 144.6 120.3 104.7 New passenger auto registrations 82.6 46.0 41.9 - 8.9 -49.3 -28.6 124.7 51.5 63.3 In spite of the general decline in Business liquidations manufacturing activity, there were Number........................................... + 4.8* - 1.7* +20.7* 244.4 229.2 240.3 certain individual lines that made bet Amount of liabilities.................... +76.2* +171.1* +124.9* 178.7 274.9 484.5 ter than the usual showing in April. Payment of accounts Check payments........................... Particularly noticeable among these 99.2 65.7 67.5 + 2.7 -32.0 -29.3 100.2 64.4 68.2 Rate of collections (actual, not were the increases in the production indexes) of steel castings, cigars, explosives, Retail trade............................... + 34 Wholesale trade........................ - 2.8 - 6.1 slaughtering of animals for food, 56.1 54.2 52.7 and in the activity of the ship and Per cent change from boat building industry. Production (000,000’s omitted in dollar figures) of- automobile parts and bodies, Apr., Jan., Feb., Mar., Apr., 1931 1932 1932 1932 1932 Month Year hosiery, sugar, and meat packing was ago ago also greater in the first four months this year than last; most of the re Banking and credit Reporting member banks maining lines registered sharp reces Loans to customers.................. $788 $710 $702 $693 $671 - 3.2 — 14.8 Open market loans and invest sions in this period. 613 481 473 458 433 - 5.5 - 29.4 ments Consumption of electric power by All member banks—net demand industry during April showed a rather and time deposits. . . . 2,467 2,046 2,002 1,983 1,964 - 1.0 - 20.4 Bankers’ acceptances outstandexceptional gain over the previous 22.2 mg................................................... 15.1 16.0 15.2 15.1 - 0.7 - 32.0 month but not as compared with a Federal Reserve Bank year ago. The use of electrical energy Bills discounted.......................... 16 119 122 97 74 -23.7 +362.5 Other bills and securities......... 50 71 67 71 for power purposes by municipalities 82 +15.5 + 64.0 Reserve ratio........................... 89.2% 60.4% 59.7% 64.9% 67.5% + 4.0 - 24.3 also increased in the month and in the t 3-month moving average. p Preliminary. JSeayear, while that by street cars and sonal factors revised. r Revised. Page Three OUTPUT OF PRODUCERS GOODS BUILDING CONTRACTS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT METALS TOTAL RESIDENTIAL TRANSPORTATION EQUIPMENT ADJUSTED FOR SEASONAL VARIATIONS 1927 1928 1929 1931 1932 1927 1928 1929 1930 1931 1932 Source: F. W. Dodge Corporation railroads declined. Percentage changes reports from eleven leading cities of ord in March, declined appreciably in this district, rose 7 per cent and pay April; usually there is a small increase are given in the accompanying table. rolls 10 per cent from March to April. in this period. In the first four months Operating time in the same period in of this year, forced sales were 11 per Apr., 1932, per cent change Electric power creased 18 per cent. Awards of con cent larger than last year. compared with Philadelphia Federal Reserve tracts in early May, largely for new District Percentages are computed construction in this section, also Agriculture. Although vegetation was Mar., Apr., from daily averages retarded somewhat by cool, dry 1932 1931 showed a considerable gain over a weather in early May, subsequent rains month ago, even though they were only replenished soil moisture while higher + 1.0 Rated generator capacity........... + 1.4 about one-half the contracts let at the temperatures provided more satisfac - 1.7 Generated output (10 systems) - 4.4 same time last year. Hydro-electric........................... + 1.2 +42.9 tory growing conditions. Farm work -20.7 Steam........................................... - 0.2 The trend in the total awards of is progressing as usual and plantings - 6.3 Purchased................................... -22.4 building contracts has continued up are about two-thirds completed. + 3.5 Sales of electricity (11 systems) - 3.4 ward since February and the increase + 1.3 Lighting....................................... + 2.5 The growth of pastures and -10.0 Municipal................................ + 0.4 in April over March was somewhat meadows has advanced noticeably dur Residential and commercial + 2.8 + 2,7 + 4.2 larger than was to be expected. This ing the past fortnight and in most Power........................................... - 7.1 + 6.3 + 0.1 Municipal............................... was due mainly to awards for non- sections their condition is equal to that -12.7 Street cars and railroads. . . -10.0 + 9.1 Industries................................ - 6.6 residential buildings, since contracts of a year ago. Truck and garden Industries (working days). . - 4.7 +12.3 + 4.2 All other sales............................ + 5.9 for dwellings registered a rather sharp crops have grown rather slowly be decline, which is contrary to the usual cause of cool nights. Frost damage to The trend in manufacturing activity seasonal tendency. In April 1931 orchards has been exceedingly small of this district in the past thirteen total awards were almost twice as and fruit is reported to be setting well years is illustrated by the following large and residential contracts nearly in nearly all parts of this district. In three times as large as in April this dications now are that this year’s crop table: year. will compare favorably with that of Estimated expenditure under build Value last year. added by Number Wage ing permits issued in April was 143 Wages Although the present condition of Census of es earners (000,000’s manu per cent above the usual seasonal livestock is about equal to that of a facture tablish (avg. for omitted) year (000,000’s year) ments amount, while the relative gain in the year ago, it appears slightly below the omitted) country as a whole was much smaller. normal for this season. Cold storage In comparison with a year ago, esti holdings of butter and eggs increased S2,466 1919... 23,802 923,997 SI,073 1,672 767 1921. . . 17,357 697,426 mated cost in April was 46 per cent in this section between April and May, 1,078 2,406 1923. . . 16,401 877,404 1,003 2,386 1925... 14,934 803,726 less and for the year to date 36 per while those of poultry and cheese de 2,377 996 1927.. . 14,990 792,432 cent smaller. Part of this decline un clined; as compared with a year ago, 2,746 1,049 14,734 820,168 1929. . . 1,780 623,410 610 1931*.. doubtedly has reflected the influence holdings of poultry alone showed an of lower prices. increase. Prices of farm products * Figures given for 1931 have been estimated; earlier figures have been taken from the United The real estate market shows little have declined further. States Census of Manufactures. improvement. Deeds recorded in Building and real estate. Construc April, exclusive of those resulting Coal. Demand for anthracite has tion activity has increased since early from foreclosures, showed larger than slackened as is usual at this season; April, but the rate of this gain has not the customary gain over March, but sales by retail yards in Philadelphia been as rapid as it was during the the value of mortgages registered declined in April and were smaller than spring season of other years. Employ a rather exceptional decline. Sheriff in the same month last year. Colliery ment in building trades, as shown by sales, after reaching a new high rec output, which averaged 225,000 tons Page Four OUTPUT OF CONSUMERS’ GOODS PERCENT OUTPUT OF MOTOR VEHICLES PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT BODIES LEATHER PRODUCTS MOTOR VEHICLES TEXTILE PRODUCTS 1926 1929 1930 1932 1927 1928 1930 1932 Source: American Railway Association daily during April, showed a gain of 27 per cent over the rate of the pre ceding month and was only slightly smaller than that of a year ago. In early May production declined sharply. Shipments also increased last month and were the largest since October 1931. Wholesale prices of anthracite declined 4 per cent in April and were somewhat lower than those of a year earlier. Production of Pennsylvania bitumi nous coal declined in April by less than the usual seasonal amount; as compared with other years, however, colliery output was unusually small. In the first fortnight of May produc tion showed little change from the rate of the preceding month. Shipments declined sharply in April and were only about 60 per cent of those of a year earlier. Wholesale prices of soft coal throughout the country averaged slightly lower than in March and were about 2 per cent below the level of a year ago. Distribution. Retail trade showed a considerable improvement during April. Sales of department, apparel, and credit stores increased more than they usually do between March and April. In the first four months, how ever, dollar sales were 25 per cent smaller than in the same period last year, declines ranging from 20 per cent in department stores to 36 per cent in credit stores. Business in early May slackened somewhat, although favor able weather has had a quickening effect on the demand for seasonable merchandise. Retail commodity prices have de clined further. Official figures show that retail food prices dropped one per cent in Philadelphia and less than one per cent in Scranton from March to April as compared with a decline of more than one per cent for tk. coun try as a whole; food prices also de clined from a year ago by 17 per cent in Philadelphia and 15 per cent in Scranton as against a decrease of 16 per cent for the country. Retail quo tations for the kind of merchandise generally sold by department stores showed a decline of 2 per cent in the month and 23 per cent from a year ago, according to Fairchild’s retail price index. In contrast with retail trade, sales by wholesale dealers declined more than is usually the case from March to April. Declines were greater than they normally should have been in sales of drugs, groceries, and jewelry, while they were smaller than usual in shoes, dry goods, and paper. Whole sale business in hardware alone showed a substantial gain over March. Sales for the year to date have been running about 19 per cent smaller than last year. Early reports for May indicate further recessions. Stocks of merchandise at retail es tablishments declined from March to April instead of increasing as was the case in other years. Inventories at wholesale, on the other hand, declined seasonally. In comparison with a year ago, mercantile stocks were about 18 per cent smaller, reflecting partly lower prices, a fact which also holds true of sales. The rate of stock turn over has been somewhat lower this year than last. Settlement of accounts was slightly higher in April than March in retail, while they were some what lower in wholesale; compared with a year ago, collections in both lines were less rapid. Shipments of commodities by rail road freight in April showed a rela tively small gain over March so that our seasonally adjusted index has de clined further. For the year to date, freight car loadings were 23 per cent smaller than in the first four months last year. Sales of new passenger automobiles increased from March to April by a noticeably smaller amount than is cus tomary, and when compared with a year ago, sales were 49 per cent smaller. The number of units sold was 29 per cent lower in the first four months this year than last. Financial conditions. During the last quarter there has been little change in rates on prime commercial loans. Lessened business activity and lower prices for commodities and securities were reflected in a continued decline in bank loans to customers. The banks have materially reduced their borrowings from the reserve bank, obtaining the funds in part from the sale of investments. Only one bank has closed in this district since the middle of February, while four have reopened. The decrease in loans to customers amounted to 15 millions at the report ing banks in the four weeks ended May 18, but this was only about half as great as the drop in the preceding five weeks. Decreases in the past two months have been equally divided be tween loans secured by stocks and bonds and those which are not so se cured. The decline in total loans over the past year has been about 20 per cent, little greater than the decline Page Five BUILDING MATERIALS - PRODUCTIVE ACTIVITY PERCENT FREIGHT CAR LOADINGS PHILADELPHIA FEDERAL RESERVE DISTRICT ALLEGHENY DISTRICT PERCENT 19 3-25AV G.=100 CEMENT 100 ““•V. 19 30 80 LUMBER AND PLANING MILLS 1932 Source: Department of Commerce, Bureau of Mines S 329 322 6 176 270 Total loans and investments......... $1,103 Net demand and time deposits...................... 883 Government deposits.. 36 S 337 329 6 155 269 May 20, 1931 S 412 367 46 206 318 SI,096 SI,349 874 18 1,191 7 of the reporting banks increased only 22 millions between April 20 and May 18, despite the allotment to them of more than 40 millions of new govern ment securities on May 2. Time de posits increased slightly and net de mand deposits rose from 609 to 617 millions, probably reflecting increased balances to the credit of other banks and the deposit of funds paid out by the Treasury. On May 18 this bank held 60 mil lions under discount, a decrease of 10 millions in four weeks to the lowest figure since the end of September. The decrease in the month was due mainly to payments by banks in some of the larger cities outside of Phila delphia. Since March 2 borrowings of Philadelphia banks have fallen from 62 to 11 millions, while accommodation extended to country banks has de creased from 64 to 49 millions. The number of borrowing banks continues large, but has declined slightly since the middle of April, although an in crease is usual at this time. The cash reserves of the bank show a decline in the last four weeks, owing principally to payments by the bank for 27 millions of United States secur PAPER AND PRINTING ACTIVITY PERCENT Federal Reserve Bank of Philadelphia (Dollar figures in millions) Changes in— May 18, 1932 Bills discounted for banks in— Philadelphia. . . S 10.7 Other communi49.1 Total bills dis counted ......... $ 59.8 3.4 United States se111.6 Other securities. . 1.7 Total bills and securities.... $176.5 Member banks’ re serve deposits 119.6 Foreign bank de4.7 Cash reserves.... 230.8 Reserve ratio.... 61.8% Four weeks -S 3.5 +$ + 6.5 MILLIONS 1927 1928 Page Six 1929 1930 1932 + + 62.2 1.7 +$108.2 - 2.7 0 + - 17.6 - 4.6% - 26.9 4.1 28.8 26.3% ities, our participation in the system’s open market purchases, and transfers for the government; other commercial and financial transactions showed a balance of 20 millions in favor of the REPORTING MEMBER BANKS—PHILA. DISTRICT LOANS TO -CUSTOMERS 500 —. +$ 41.0 + 3.3 +$17.3 PRINTING AND PUBLISHING PAPER AND WOOD FULP PRODUCTION 8.0 33.0 + LOANS AND INVESTMENTS PHILADELPHIA FEDERAL RESERVE DISTRICT One year - ’ Loans to customers: On securities............. All other.................... Open market loans.... United States securities Other securities............ Apr. 20, 1932 Source: American Railway Association o© May 18, 1932 ARIATIO ns MAM tc*-* Reporting member banks (000,000’s omitted) ADJU 5TED FC R SEA >ONAL i shown by all reporting banks outside of New York City. Sales of investments are indicated by the fact that the security holdings 40 o 1931 2 1930 fo 1929 _ 0-4 1928 IS 32 60 ++ 1927 19 31 V f /1 %l OPEN MARKET LOANS AND _ _ _ INVESTMENTS 193 1 1932 district which probably was due in part to sales of securities. About 7^4 millions of funds was withdrawn from the market by Treasury operations, 2J4 millions was added to member banks’ reserve deposits, and the re mainder apparently was used largely to reduce borrowings from the reserve bank. Currency payments and re ceipts were nearly equal. Two new government security is sues were made on May 2. Subscrip tions from this district totaled 369 millions, or nearly one-fifth of all sub scriptions outside of the New York District. The allotment locally was 54 millions, of which 52 millions was paid for by deposit credit at sub scribing banks. Government deposits, however, increased only 21 millions from April 20 to May 18, indicat ing large with drawals by the Treasury. The funds so with drawn were mainly disbursed within the dis trict, as may be noted from the fact, mentioned earlier, that only 7J4 millions was taken from the local market by the Treasury. FEDERAL RESERVE BANK OF PHILADELPHIA Percentage change—Apr., 1932, from Apr., 1931 Employ ment Wage payments Building permits (value) Debits -19.0 -26.8 -23.0 -32.8 -13.9 -16.8 - 8.9 -40.4 -13.8 -18.1 -14.3 - 5.3 -15.1 -40.5 -48.6 -39.8 -62.2 -43.1 -31.7 -32.0 -39.4 -31.2 -36.2 -40.5 -18.0 —27.0 - 15.3 - 36.7 + 9.1 - 13.7 - 68.7 - 46.6 - 50.9 +240.0 - 49.2 - 92.3 - 71.0 - 52.5 - 77.3 -23.8 - 9.2 -19.4 -33.4 -31.2 -32.8 -20.7 -13.6 -31.1 -16.5 -32.9 -25.1 — 18 8 Retail trade sales -24.2 -27.4 -13.0 -34.6 -26.0 -21.3 -14.7 -21.3 -23.8 - 0.5 -10.4 + 3.2 - 2.5 -15.2 - 5.5 -11.7 -16.0 -11.0 - 4.6 -12.9 0.0 - 4.2 - 0.6 +100.2 + 42.6 + 79.3 + 56.2 - 86.4 +264.5 - 18.8 +830.7 + 77.4 + 35.4 +129.0 + 75.6 + 57.5 h 6.2 - 4.2 - 3.2 - 8.1 -13.4 - 3.5 - 4.2 - 5.2 +15.7 + 8.9 -4-2 8 2.1 -4-15.7 * Area not restricted to the corporate limits of cities given here. Mar., 1932 Apr., 1931 Mar., 1932 All manufacturing industries (51)....................................... 64.7 -18.2 - 4.3 41.5 -40.6 -10.4 Metal products........................... Blast furnaces........................ Steel wks. and rolling mills . Iron and steel forgings........ Structural iron work............ Steam and hot wtr. htg. app. Stoves and furnaces............. Foundries................................. Machinery and parts........... Electrical apparatus............. Engines and pumps.............. Hardware and tools............. Brass and bronze products. 56.2 37.5 52.1 49.8 72.6 76.2 61.8 53.9 63.9 72.0 36.0 61.6 54.9 -25.0 -19.5 -26.3 -23.1 -11.1 - 9.5 -10.3 -27.7 -24.2 -25.1 -32.8 -18.3 -19.3 31.5 20.8 27.8 32.1 36.9 51.7 36.0 23.9 40.5 44.5 20.6 36.7 31.4 -51.1 -45.1 -56.1 -42.0 -37.1 -23.7 -11.5 -55.0 -38.9 -49.3 -47.8 -40.2 -42.2 -11.8 -17.5 45.7p 43.0 53.0 20.9 76.6 48.0 -24.2 -33.7 - 7.2 -15.7 + 7.7 -19.7 4.6 _ 14.8 _ _ 3.3 — 7.3 _ 8.0 — 2.3 + 5.3 8.0 — 4.5 — 7.7 + 2.3 5.2 - 4.4 _ 3.0 0.0 L9.1 — 2.3 — 0.1 +24.0 29.Ip 19.5 • 31.0 13.4 51.7 74.7 -47.1 -59.6 -43.2 -30.2 -22.4 -19.8 - 2.2 + 2.2 +50.6 -31.9 -38.4 -31.8 -41.9 -23.5 -32.8 -36.9 -19.0 -29.1 -29.5 -30.7 -48.4 -15.6 -26.3 -26.6 - 9.0 - 1.0 -13.1 -17.3 -19.3 -16.2 - 3.0 +22.9 - 2.5 -12.3 -17.8 + 3.0 +18.4 -18.2 - 9.8 - 5.9 + 7.3 -15.4 - 9.5 - 7.3 - 4.9 -12.7 -12.5 - 4.4 -25.4 - 7.5 -15.2 -28.9 + 5.1 - 3.1 - 6.7 -15.7 -25.9 1.1 2.8 0.7 5 6 — 0.8 + 3.8 + 8.5 3.8 55.2 38.2 33.7 58.7 69.0 32.6 30.1 80.8 47.1 55.2 92.8 72.8 94.6 98.9 89.0 83.2 93.4 92.2 - 8.2 - 6.3 - 5.5 -15.1 - 2.7 -10.6 _ 2.0 + 0.2 6.2 — 0.2 — 1.1 - 1.6 78.0 84.9 79.9 77.8 77.1 64.8 -16.4 -15.3 -13.0 -20.2 - 3.1 -23.3 - 5.8 - 0.6 -10.7 - 1.6 - 3.9 - 8.5 49.2 55.0 43.8 53.1 -18.8 -26.2 -20.5 - 3.1 5.6 2.7 — 3.7 12.2 26.1 27.0 22.0 37.4 -44.0 -50.1 -51.9 -12.4 - 8.1 + 3.8 -13.0 -11.6 43.1 29.2 44.3 55.8 -24.9 -10.2 -33.3 -14.8 -46.0 -19.9 -56.1 -38.1 -16.8 - 6.8 -22.6 -14.0 Chemical products.................... 79.3 Chemicals and drugs........... 60.5 Coke.......................................... 62.3 Explosives............................... 68.3 Paints and varnishes........... 83.8 Petroleum refining................ 112.9 -12.4 -19.7 -14.2 - 8.3 - 6.8 -10.0 27.3 21.8 13,6 26.1 - 3.8 36.3 1.6 _ 0.8 66.3 — 51.0 + 0.2 30.7 0.0 55.3 — 3.2 66.1 - 2.3 105.5 -27.5 -37.7 -49.3 -25.0 -24.5 -18.7 - 2.2 + 0.8 + 1.7 +10.6 - 8.2 - 3.4 Leather and rubber products 91.3 Leather tanning.................... 90.9 Shoes......................................... 104.7 Leather products, other... . 72.2 Rubber tires and goods.... 77.4 - 3.3 - 9.9 +11.4 - 9.1 -12.4 _ 3.4 — 0.5 — 7.0 — 1.9 - 3.5 70.3 67.8 83.0 61.9 70.8 -24.9 -29.7 - 9.8 -25.5 -31.0 - 7.1 - 1.9 -17.2 -11.4 + 0.9 Paper and printing.................... Paper and wood pulp.......... Paper boxes and bags.......... Printing and publishing___ 85.6 74.4 69.4 91.7 - 9.1 - 9.0 -12.4 - 9.1 _ 1.9 _ 1.3 — 2.4 2.4 77.4 57.7 60.4 86.6 -20.2 -25.0 -22.5 -18.4 - Anthracite mining..................... Bituminous coal mining.......... Canning and preserving.......... Construction and contracting. Hotels........................................... Laundries..................................... Dyeing and cleaning................ 68.1 -17.9 - 5.0 - 0.4 - 1.5 + 10.8 + 0.1 + 1.5 + 2.6 - 0.9 61.8 - 3.1 +19.1 - 2.6 - 8.9 +12.4 - 4.2 + 0.4 + 4.8 - 4.0 84.6 82.8 -10.2 - 7.9 _ 5.3 10.9 13.3 _ — — — — _ — _ 10.0 — 9.6 — 6.9 9.3 8.1 6.0 -38.6 Apr., 1932, from Mar., 1932 Wilmington.......... York....................... Apr., 1931 Lumber products....................... Lumber and planing mills.. F urniture................................. Wooden boxes........................ 1929 - 2.5 + 8.2 - 1.2 - 2.0 - 1.5 - 6.3 - 4.3 -11.0 - 3.2 - 3.3 — 0.9 - 1.9 + 1.8 Per cent change since Apr., index * Stone, clay and glass products Brick, tile and pottery........ Cement..................................... Glass......................................... City areas* Allentown............. Altoona.................. Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Per cent change since Foods and tobacco.................... Bread and bakery products. Confectionery........................ Ice cream................................. Meat packing......................... Cigars and tobacco............... FOR BANKS OUTSIDE OF PHILADELPHIA Allentown............. Altoona.................. Harrisburg___... Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Williamsport........ Wilmington.......... York....................... Apr., index * Textile products......................... 79.8 Cotton goods.......................... 53.8 Woolens and worsteds......... 52.7 Silk goods................................ 77.7 Textile dyeing and finishing 83.2 Carpets and rugs.................. 52.4 Hats.......................................... 58.0 Hosiery..................... 109.6 Knit goods, other.................. 79.2 Men’s clothing....................... 79.5 Women’s clothing................. 120.0 Shirts and furnishings......... 110.8 FOR PHILADELPHIA BANKS' AVERAGE OF FIRST 3 WEDNESDAYS Employment and wages in Pennsylvania Payrolls April, 1932 Transportation equipment... . Automobiles............................ Auto, bodies and parts .... Locomotives and cars.......... Railroad repair shops.......... Shipbuilding........................... BILLS DISCOUNTED MILLIONS Employment April, 1932 +11.8 -11.9 0.0 +13.9 - 5.5 + 7.5 + 19.0 + 7.6 + 7.2 +35.6 + 1 .2 Quarrying and non-metallic mining...................................... Retail trade................................. Wholesale trade........................ * 1923-1925 average = 100. + 5.7 - 0.6 - 1.7 + 6.4 p Preliminary figures. Page Seven Index numbers of individual lines of trade and manufacture WHOLESALE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT MUUSTZO nO SEASONAL VARIATIONS IftU-Al AVtt.lW 100 Philadelphia Federal Reserve District STOCKS ML,. SALES'^ Index numbers—expressed in percentages of the 1923-1925 average which is taken as 100 75 “Adjusted” index numbers make allowance for the usual seasonal changes which result from an unBOOTS AND SHOES AAyw 76 \s-*\j\PS A 60 A DRUGS “Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Not adjusted Adjusted for seasonal variations tween the months of the year. They are the most significant in dexes because they show im provement or decline beyond the level usually to be expected. Percentage comparison Apr., 1931 Mar., 1932 Apr., 1932, with Apr., 1932 Month ago Year ago 4 months Apr., 1931 1932 with 4 months 1931 Mar., 1932 Apr., 1932 STOCKS Retail trade Sales All stores....................................... 175 150 V , \ w. 125 \ SALES , >v +r' ^—-— \ 100 86.8 Department............................. 83.6 Men’s apparel......................... 73.4 Women’s apparel................... 106.6 Shoe........................................... 94.8 Credit........................................ 88.0 Stocks of goods 75.1 DRY GOODS 71.2 72.5 107.6 92.0 66.3 STOCKS 75 ~V\A/ 50 SALES'-* •A.. Ss? STOCKS 150 Boots and shoes..................... 125 ,Af; \\ Dry goods................................ Electrical supplies................. Groceries................................... \S 100 Paper......................................... 75 SALES^\ 50 y SALES 62.6 66.6 86.7 72.4 54.6 -20.0 81.9 -29.8 73.1 -24.6 128.6 -25.2 108.1 -35.6 88.0 62 .9 61 .4 - 2.4 62 .Or 64. lr 81 ,3r 71 .8 54 5 60.3 63.0 81 .2 71 .0 52.5 - -18.2 -15.3 -13.1 -24.5 -22.8 -20.8 2.7 1 .7 0.1 1.1 3.7 80.0 55.3 100.0 60.5 86.0 90.2 75.0 58.9 73.0 1.19 1.28 60.8 - 2.7 -24.0 -18.9 74.4 58.7r 56.7 42.8 43.0 89.1 91.1 37.4 39.7 49.3 46.4 85.3 80.4 40.9 48.7 43.4 36.2 53.5r 54.1 + 0.5 - 2.2 + 6.1 - 5.9 - 5.7 + 19.1 -16.6 + i.i -22.2 -10.9 -34.4 -46.0 -10.9 -35.1 -38.5 -25.9 -12.6 58.6 -12.3 101.0 -28.8 52.6 -37.5 79.1 - 7.4 83.0 -32.9 77.3 -26.5 38.3 73.0 -25.1 48.4 95.7 34.8 42.4 78.5 40.1 33.0 56.2r 45 .6 90.0 34.5 42.7 74.0 50.2 23.5 54.1 68.3 - 1.0 -17.0 82.4 69.6r 68.4 + + - 6.2 -18.7 -25.1 -17.9 -11.2 -14.8 -17.9 62.5r 69. Or 2.3 0.2 0.8 0.8 1.6 6.7 1.0 Rate of stock turnover 4 months (actual, not indexes) 75 64.0 64.2r 65. Or 88.8r 72.5 56.1 -24.9 -17.0 -30.1 -23.5 -27.7 -35.2 - 7.0 82.3 STOCKS 100 65.0 74.1 76.6 115.0 93.8 69.0 -23.5 + 8.4 + 4.7 + 8,4 - 2.7 + 16.6 113.3 108.8 106.3 53.4 43.5 43.4 102.8 77.6 77.0 95.6 77.9 78.5 78.5 70.8 69.7 69.0 63, Or 58.8 86.4 70.2 70.9 GROCERIES 78.3 + 8.5 69.4 51.3 81 .5 68.5 57.0 Stocks of goods A 65.9 65.9 49.0 95.0 75.4 55.3 66.4 64. Or 49. Or 75.2 70.4 48.9 Rate of stock turnover Wholesale trade Sales Total of all lines......................... ELECTRICAL SUPPLIES 59.7 60.6r 48.8r 88.3 71.8 43.0 89.2 61.2 114.4 109.9 107.4 53.4 44.4 43.4 100.7 75.3 75.5 95.6 79.5 78.5 83.2 74.3 73.9 66.2 58.6r 56.4 86.4 71.6 70.9 - 5.5 -54.7 -47.8 -47.2 -59.6 -36.5 -32.1 +29.6 -34.7 -12.5 -16.0 -19.2 -15.6 -13.9 + 1.6 - 8.9 -28.0 -46.0 -16.9 -15.6* +16.5 +21.5 -28.1 -19.8 -17.4 -14.3 - 5.9 -15.8 -30.9 - 9.3 - 2.9 -35.4 44.3 73.7 51.8 63.8 92.0 59.9 57.4 22.3 169.2 103.6 59.2 53.7 57.8 102.4 124.3 83.0 56.2 22.0 100.2 77.1 92.0 34.3 94.0 76.8 111.5 139.3 123.5 72.4 82.7 128.7 96.9 1.37 1.45 Output of manufacturers HARDWARE •Ot***'*' STOCKS Iron castings.................................... Steel castings................................... Electrical apparatus...................... Motor vehicles................................. Automobile parts and bodies.... Locomotives and cars.................... Shipbuilding..................................... Silk manufactures.......................... Woolen and worsteds.................... Cotton products.............................. Carpets and rugs............................ Hosiery.............................................. Underwear........................................ 75 SALES 50 JEWELRY SALES 100 75 V,y V STOCKS A 50 Lumber and products................... PAPER STOCKS J 100 75 SALES 50 1929 1930 1931 1932 Slaughtering, meat packing......... 78.8 90.0 99.8 Sugar refining.................................. 70.8 81.9 77.4 Canning and preserving............... 40.5 26.7 27.2p Cigars................................................. 103.3 72.6 76.7 Paper and wood pulp.................... 76.0 62.5 57.3 Printing and publishing............... 109.3 94.9 89.2 139.3 123.4 110.3 Leather, goat and kid................... 127.3 105.2 105.3p 71.7 49.6 54.4p 78.8 66.7 59.5 Petroleum products....................... 128.9 124.2 119.3p 59.9 55.8 Coke, by-product........................... 93.2 * Page Eight 14.5 39.2 15.6 70.2 35.4 30.9 49.8 26.8 24.9p 62.5 20.2 28.4p 105.8 53.3 53.6 19.3 47.9 23.5 52.7 50.2 29.8 20.9 14.7r 14.5 165.9 144.6 169.9 105.7 78.6 75.8 64.9 45.2 34.4p 51.9 42.4 32.5 57.8 45.6 40.4p 102.4 96.2 92.5 126.8 101.4 96.6 83.8 58.4 46.7 53.5 27.6 26.7 18.3 23.2 19.7 Computed from unadjusted indexes. p Preliminary. - 7.1 -12.7 - 7.1 +40.6 + 0.6 -17.9 -40.6 - 1.4 +17.5 - 3.6 -23.9 -23.3 -11.4 - 3.8 - 4.7 -20.0 - 3.3 - 7.1 - 0.6* +10.9 - 5.5 + 1.9 + 5.6 - 8.3 - 6.0 -10.6 + 0.1 + 9.7 -10.8 - 3.9 - 6.8 -63.0 -56.0 -50.0 -54.6 -49.3 -59.7 -43.5 -30.6 + 2.4 -28.3 -47.0 -37.4 -30.1 - 9.7 -23.8 -44.3 -50.1 -21.1 -15.3* +26.6 + 9.3 -32.8 -25.8 -24.6 -18.4 -20.8 -17.3 -24.1 -24.5 - 7.4 -40.1 Revised. 17.9 37.9 28.1 22.6 49.6 25.4 54.7 15.9r 150.4 81.0 43.4 45.4 46.5 100.0 110.5 45.0 27.0 18.7 85.4 86.4 125.3 23.7 66.8 63.8 96.8 130.8 104.1 49.6 68.0 123.3 62.3 16.4 32.4 25.9p 29. Op 46.6 24.1 32.5 15.5 173.3 74.3 31.5p 33.6 40.4p 92.5 94.7 46.2 28.0 17.4 84.9 97.2 100.6 23.8p 69.8 57.9 91.0 110.3 102.Ip 54.9p 62.5 119.2p 58.0
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