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THE BUSINESS REVIEW
FEDERAL RESERVE BANK
OF PHILADELPHIA
.As&iaiw-s;

ThROUGH the early months of this year, the

volume of munitions turned out in expanding
programs was insufficient to offset scheduled
reductions in others, with the result that over-all
output in the four months ended April was some
what below the record high levels prevailing the
latter part of 1943. Total industrial production
in April, on an adjusted basis, was 3 per cent
under the peaks of last fall both in this district
and in the country as a whole. A scheduled in
crease in the production of the most critical war
items over the remainder of the year suggests a
reversal of this movement. According to the
War Production Board, four-fifths of the muni
tions schedules are expected to rise, with total
production of war materials increasing steadily
over the summer to a new peak by fall.
With the approach of the supreme military
effort, business and Government come closer to
the point where many problems relating to the
distribution of the productive effort between
munitions and civilian goods may be more defi
nitely resolved. While the results of over two
years’ intensive preparation hang in the balance,
the production of critical equipment and sup
plies must be pushed to the limit. Likewise it is
essential that capacity be held in reserve for
a quick resumption or increase in the output of
certain military items currently in amply supply.
Under these conditions it is increasingly prob
able that the initiation of major civilian goods
programs will be delayed pending clarification
of the military situation in Europe. To the ex
tent that major developments forecast the end

JUNE 1, 1944

of hostilities in that theatre, sweeping changes
in the business situation may be expected to
follow.
Official sources have indicated that with the
final defeat of Germany at least one-third of the
capacity employed in munitions production will
become available for reconversion. A reduction
of this magnitude would profoundly influence
industrial and trade prospects. Employment in
the affected war industries would contract, at
least temporarily, and salaries and wages would
decline, but an enormous backlog of purchasing
power has been accumulated by individuals and
business concerns, and unsatisfied demands for
a wide range of durable merchandise wait for
their satisfaction only upon availability.
In this critical period of readjustment, maxi
mum cooperation of management and labor will
be necessary. The problems to be faced are
many and complex, but widespread efforts to
plan ahead, insofar as this can be done under
conditions of intense war activity, suggest more
adequate handling of the post-war situation
than that which followed World War I.
Industry and trade. Industrial production
in the Third Federal Reserve District was ap
proximately maintained from March to April at
about the level prevailing a year earlier. Out
put of manufactures on an adjusted basis showed
virtually no change in the month and year, but
in the four months ended April was 3 per cent
greater than in the same period of 1943. ProContinued on page 10

Page One

The Economy of the Third Federal Reserve District
Wartime Changes in the Population of the Third District
PRECEDING instalments of this series gave
an inventory of the pre-war population of the
Third District. It was pointed out where the
people lived, what kinds of people lived here,
and how they were employed. The purpose of
this section is to point out the nature and extent
of intradistrict migration of people during the
war period.
The impact of modern war is inevitably very
uneven upon various sections, industrial and
economic groups of a national economy. Over
night, demand, and therefore production, shifts
from the normal peacetime wants of civilians as
determined by their spendable income to the
insatiable demands of the war machine, the
fulfillment of which is limited only by available
productive capacity. The result is a distortion
of the economy accompanied by the reversal or
acceleration of many of the trends which have
prevailed in the past. A study of these devel
opments is necessary to appraise the problems
of the post-war period.
Migration
Pronounced movements of population reflect
many of the basic changes which war imposes
on our economy. Over a short period, migra
tion is generally of little consequence. How
ever, a sudden curtailment or acceleration of
production in a given region may produce im
mediate shifts in population of an area. The
simultaneous curtailment of production in some
areas and expansion in others as a consequence
of the Second World War has given population
an unparalleled short-term mobility. Net inter
state migration amounted to almost 2 million
people between April 1940 and May 1942 ac
cording to estimates of the Department of Com
merce. This figure excludes intrastate migra
tion.
After the natural changes in population and
the number of persons leaving for the armed
forces have been accounted for, the Third Dis
trict shows a net out-migration of 7,000 between
April 1940 and March 1948. This is 0.1 per
cent of the 1940 population and thus is too
small to be significant. The net out-migration
was negligible because the over-all stimulus of
Page Two

the war on the economy of this district was suf
ficient to absorb practically all of its manpower.
Owing to the diversified character of its econ
omy and particularly the great variety of its
manufacturing industries, the district as a
whole received a relatively large share of the
war business, especially in the early period of
the defense effort. Industrial diversification
has the effect of “spreading the risks’’ inevita
bly associated with a war boom. Contraction in
the consumer industries of one area, for ex
ample, may be offset by expansion in heavy in
dustries of another.
Although the district as a whole has encoun
tered no significant population movement,
within the district there have been considerable
population gains and losses through migration
between April 1940 and March 1943, ranging
from a loss of 24 per cent of the 1940 popula
tion in Fulton county to a gain of 10 per cent
of the pre-war population in New Castle
County, Delaware. The accompanying map
shows the proportion of the 1940 population
gained or lost through migration for each
county in the district. Examination of these in
ternal changes throws considerable light on
the impact of the war upon the various parts
of the district economy.
With some exceptions, migration within the
district has been from rural to urban areas, for
it is in the latter that war stimulus prevails.
Thus the counties experiencing a net in-migra
tion in general have been those already densely
populated—the counties in the southeastern part
of the district. This is a distinct reversal of the
trend of the thirties when there was a general
movement from urban to rural areas. The mi
gration of the war period is also differentiated
from that of the previous decade by its motiva
tion and character. The latter had for its in
centive, unemployment at the point of origin
and was characterized by haphazard move
ments of people seeking jobs. The migration
occurring between 1940 and 1943 has been mo
tivated by the lure of better opportunities at
the point of destination and was purposeful in
direction. In general it bears a resemblance to
the farm-to-city movement of the twenties.

The most extreme out-migration in terms of
number of people involved has taken place in
the five anthracite counties—Lackawanna, Lu
zerne, Carbon, Schuylkill, and Northumber
land. Here the war has accelerated a trend
which has prevailed since the twenties. Be
tween 1940 and 1943 a net total of 136,000 per
sons, or 12 per cent of the 1940 population left
these counties. This compares with a net out
migration of 93,000 between 1930 and 1940, or
8 per cent of the 1930 population. The declin
ing anthracite production over the twenties and
thirties contributed heavily to the surplus of
labor in these counties. Employment in the
second most important economic activity—
manufacturing, (principally silk and rayon tex
tiles)—also evidenced a downward trend over
the thirties. Agriculture was incapable of ab
sorbing any substantial numbers of these un
employed owing to the rugged terrain and the

extensive areas of forested or submarginal land.
Thus, unemployment in these counties was
more severe both relatively and absolutely than
in any other section of the district in 1940, a
total of 142,000 or 31 per cent of the labor
force having been without gainful occupation.
It is estimated that the order limiting silk
processing to production for defense threw 38
per cent of the silk workers in the ScrantonWilkes-Barre area out of work. The silk and
other manufacturing industries of the area
have received a relatively small proportion of
major Government supply contracts, and few
Government financed war plants have been lo
cated here. Conversion of the silk plants to
substitute raw materials has not offered a solu
tion because the newer plants in the South can
process these materials more efficiently. Fur
thermore, the supplies of rayon and nylon are

ESTIMATED NET MIGRATION IN COUNTIES
I_________

APRIL' 1940 TO MARCH
M'KEAN

TIOGA

1943
rr.
SUSQUEHANNA i:j,..;.

BRADFORD

POTTER

«■’*

4------------- ----------C WAYNE.
~

~ “* 'WYOMING v

SULLIVAN

/LACKA
/_ J____ — "‘'WANNA

/>
/V

CLINTON

CLEARFIELD

-fW*3v:

LYCOMING

pike

LUZERNE

•

UNION

CENTRE

l^CARBON ;;

NORTH-

AMPTON

S///////A •

SNYDER

SCHUYLKILL
LC HIGH

CAMBRIA
DAUP

BLAIR

BERKS

PERRY
LEBANON

LRCE

/^I^IXCUMBERLAND

C;>BEDFORD*;

r::V*

LANCASTER
OCE A

u lto^': iviv:"-’:
I:V*V*.V

!_____________ mm

/.’FRANKLIN '•¥. *DAM:

Mm®m%

YORK

THIRD FEDERAL RESERVE DISTRICT

‘•i ATLANTIC

EXPRESSED AS A PERCENTAGE OF 1940 POPULATION

UMBER

LAND

n INCREASE 5.1 TO 10.0

KENT

INCREASE 0.1 TO 5.0 >
^ DECREASE 0.1 TO 5.0

m DECREASE 5.1 TO 10.0
□ DECREASE 10.1 OR OVER
Page Three

also restricted. Mining was not a source of al
ternative employment for the displaced silk
workers since about 85 per cent of them were
women. Moreover, increased coal production
was achieved in 1943 largely through a longer
work-week. The requirement of skill and youth
closed the other alternatives of the cigar or
clothing industries for many of these newly un
employed. Although some of these were sec
ondary family workers, many were the wives
or daughters of unemployed miners. In view of
these circumstances, the large scale out-migra
tion from these counties is not surprising. Beth
lehem, Philadelphia, and war centers in north
ern New Jersey, Connecticut, and western
Pennsylvania have been the principal destina
tions for these migrants.'
A section of the district which has lost popu
lation heavily in relative terms is the northern
group of sparsely populated counties including
Potter, Tioga, Bradford, Sullivan, Wyoming,
Susquehanna, and Wayne. Between 1940 and
1943, an estimated total of 26,000 persons or
14 per cent of the 1940 population left these
counties for war centers in upstate New York
and probably for the small industrial centers in
Cameron, Lycoming, and Montour counties ex
periencing a war boom. These northern tier
counties also have received few major war con
tracts, as they are primarily agricultural. Un
employment in 1940 was relatively severe but
in no way comparable to that suffered by the
anthracite counties. In contrast to the anthra
cite counties, almost no net change had oc
curred in this group through migration over the
thirties. Thus the present out-migration ap
pears to have its roots not so much in unem
ployment or under-employment resulting from
a declining industry important in the area or
from a reduction in employment opportunities
resulting from a war-induced cessation of activ
ity as in the search for better opportunities
than those offered by this area relatively poor
in industrial resources.
The farm and mining counties in the western,
central and southern part of the district—
Clearfield, Cambria, Adams, Bedford, Blair,
Fulton, Franklin, Huntingdon, Mifflin, Juniata,
and Perry—have also given up population to
the surrounding areas over this period, with
Cambria contributing over one-fifth of the net
decrease of 48,000 persons. Again relatively
little war production, a surplus of labor, and
the prospect of higher wages than those paid in
Page Four

agriculture and mining have been the immedi
ate motivating factors although there may have
been others more deep-seated in view of the
out-migration of 31,000 persons from these
counties over the thirties. Pittsburgh, Balti
more, York, and Philadelphia are the main cen
ters drawing these workers.
New Castle County, Delaware, with a net
increase of 17,000 persons, almost 10 per cent
of its 1940 population, is the county in the dis
trict with relatively the greatest in-migration.
This is partially accounted for by the fact that
by February of 1943 it had received huge war
supply and facility contracts. Also at the be
ginning of the war it had a relatively smaller
labor reserve of unemployed than did the dis
trict as a whole—11 per cent of its labor force
was unemployed in contrast to 18 per cent in
the district. The development of shipbuilding
and the expansion of the chemical industries
have been the chief attractions for migrating
workers. One of the obvious sources of this in
migration has been the neighboring rural
county of Kent, although areas outside the dis
trict may have contributed a substantial part
of New Castle’s incoming population.
Mercer County in New Jersey, with a net in
crease of 13,000 through migration or 6.6 per
cent of its pre-war population, ranks second to
New Castle from the standpoint of relative in
crease. Metal products and an expanding air
craft industry have been the principal war in
dustries requiring additional labor here.
The five-county area in southeastern Penn
sylvania—Bucks, Chester, Montgomery, Dela
ware, and Philadelphia—was an extremely
large net receiver of migrants in absolute
terms. Between 1940 and 1943, this region
gained a total of 160,000 persons, 6 per cent of
its 1940 population from this source. This is
in sharp contrast to a net loss of 34,000 through
migration between 1930 and 1940. War con
tracts of almost $1,000 per capita and Govern
ment-financed facilities of about $170 per cap
ita have made possible tremendous expansion
in two of its minor peacetime industries—ship
building and aircraft—as well as in the wellestablished iron and steel and machinery indus
tries of these counties. The great majority of
the people migrating to these five counties have
come from areas within the district, the previ
ously mentioned anthracite, southern and cen
tral rural counties as well as Atlantic and Cape
May (where resort activities have been cur

tailed), Berks and Lancaster, which fact illus
trates the compensating action of the district’s
diversified economy.
The offsetting of countywise in- and out
migration is also exemplified by the population
changes which have taken place in the south
central counties. In-migration, although less
pronounced than that indicated above, has also
taken place in the group comprising Cumber
land, York, Dauphin, and Lebanon. The cities
of Harrisburg and York are important centers
of metal products and have received large war
orders. The adjacent counties of Lancaster
and Berks, which have not experienced sub
stantial industrial expansion, owing largely to
the predominance of the textile industries
there, have contributed a large part of this in
migration.
Such redistribution of population as had oc
curred between April 1940 and March 1943 is
not necessarily the final wartime pattern.
Throughout the remainder of the war, migra
tion may be expected to continue in response to
changing demand for labor in the principal cen
ters of war production. Changes in civilian
population between March and November 1943
reveal, with few exceptions, a continuation of
the trends established since the outset of the
war.
Whether the counties of in-migration will
hold their newly gained population, and
whether the counties now suffering an out
migration will continue to lose population in the
post-war era will be determined by the adjust
ments which each is able to make to a peace
time economy. Those having war industries
easily convertible to peacetime products and
consumer industries capable of being revived
will probably retain their war migration gains
and possibly even attract additional people.
Where war industries must be scrapped the
outlook is less promising. The development of
new industries and the more efficient and fuller
utilization of existing resources in the areas los
ing population might well reverse the direction
of migration. Such steps would counteract the
effect upon the district of those industries un
able to maintain wartime levels of employment.
The possibility of centers outside the district
drawing away its population must not be over
looked; in fact, if the district fails to make a
satisfactory conversion to a high level of peace
time production this may indeed occur.

Wartime Changes in the Labor Force
Manpower resources must be mobilized effec
tively for modern warfare. Population must be
illocated properly between military and civilian
labor forces. Efficiency of the labor supply
must be raised to the highest possible level by
training, by fully utilizing highest skills, by
lengthening working time, and by allocating
labor where it is needed most.
It is
necessary to supplement the over-all labor sup
ply not only to fill the gaps left by those who
have entered the armed forces but also to in
crease production to the highest possible levels.
This is accomplished by tapping sources nor
mally outside the labor force—school children,
college students, retired workers, and house
wives. These wartime expedients increase the
size and change the composition of the labor
force. As a consequence, the post-war labor
force will have a greater potential productivity
but the distribution of skills may be consider
ably out of line with peacetime demands. How
ever, the lessons of adjustment learned during
the war may help to simplify the job of read
justment after the war. A survey of these war
time changes in the labor force indicates the
nature of the task ahead.
The estimated changes in the size and com
position of the civilian and military forces are
shown in Table 1, for the United States, for the
three states—Pennsylvania, New Jersey, and
Delaware—and for Philadelphia.
The three states show a slight increase in the
civilian labor force between March 1940 and
November 1943, whereas Philadelphia and the
United States show a small decrease. How
ever, when armed services are included the
real expansion in our working population is
revealed. The over-all expansion of the work
ing population in the three-state area was 22
per cent, 19 per cent in Philadelphia and for
the United States 17 per cent. The national
labor force, military and civilian, grew at the
rate of almost 600 thousand persons per year
over the decade of the thirties.
Assuming this same rate of growth from 1940
to 1943, it is obvious that both the national and
regional expansion in those years came largely
from other than normal sources. In the case of
the three states and Philadelphia, net in-migra
tion of workers has also helped to make possible
this expansion.
One method used to maintain the civilian
labor force in spite of tremendous withdrawals
Page Five

TABLE 1: ESTIMATED CHANGES IN THE LABOR FORCE
Civilian Labor Force
Total
Male
Female
United States (millions)
March 1940....................................
November 1943.............................
Pennsylvania, New Jersey,
and Delaware (thousands)
March 1940.....................................
November 1943.............................
Philadelphia* (thousands)
March 1940....................................
November 1943.............................

Military and
Civilian

40.0
35.1

13.0
17.5

53.0
52.6

53.3
62.8

4,414
4,054

1,530
1,983

5,944
6,037

5,958
7,229

921
806

381
490

1,302
1,296

1,306
1,553

* Includes part of surrounding area.

of young men in the armed forces, is readily
apparent—in all three areas women have en
tered the labor market in large numbers. Their
entrance has been greatly facilitated by job
simplification, whereby jobs are broken down
into a number of lighter tasks easily performed
by women. Within the Third District this has
been evident in the increase of female employ
ment in two of its heavy industries—steel manu
facturing and railroads and railroad repair
shops. Furthermore, it has been found that
women are especially adapted to jobs requir
ing unusual dexterity, and are more efficient
than men in certain fields.
Since women made up a larger portion of the
labor force in Philadelphia and the three states
than in the country as a whole in 1940, it is
not surprising that the national increase in the
female labor force over the war period was
proportionately greater than the increase in
either of the other two areas. In the United
States the increase was 35 per cent, in contrast
to 30 per cent in the three-state area, and 29
per cent in Philadelphia.
This expansion in the female labor force and
the contraction in the male labor force have
substantially altered the ratio of men and
women in the civilian labor force. Whereas in
1940, women comprised 25 per cent of the na
tional civilian working force, in 1943 they com
prised 33 per cent. The proportion of women in
the three-state area rose from 26 to 33 per cent,
and in Philadelphia from 29 to 38 per cent. The
high percentage in Philadelphia may be due in
part to the relatively large number of indus
trial and service jobs in the metropolitan area
which can be performed by women and also
the greater than average pressure for war pro
duction in this area.
It is not so evident that there also have been
additions to the male labor force over this
period. Had there been no additions, the male
Page Six

labor force would have declined by an amount
almost equal to withdrawals for military serv
ice, but this was by no means the case. Al
though the armed forces absorbed, between
March 1940 and November 1943, a net of about
9,900 thousand men, most of whom had been in
the labor force, the labor force was replenished
by approximately 5 million new male entrants.
In the three states the 1,179 thousand with
drawals were partially replaced by about 819
thousand new male entrants; and in Philadel
phia 137 thousand new male entrants partially
filled the gap left by the withdrawal of about
252 thousand. The Department of Labor has
concluded that for the country as a whole these
men have been recruited largely from those who
customarily do not enter the labor market be
cause they are under no economic compulsion
to do so, or because they are “unwilling to ex
pose themselves to the rebuffs of the labor
market.” Many of these workers are expected
to leave the labor market once the emergency
is over.
The age distribution of the nation’s civilian
labor force is compared for 1940 and 1943 in
Table 2. The total net additions have come
largely from the youngest age group, between
14 and 19, and from the older groups, 45 or
TABLE 2: AGE DISTRIBUTION OF THE
U. S. CIVILIAN LABOR FORCE
(Millions)

Age Group

Total
March
March
1940
1943

14-19....................
20-24....................
25-44 ..................
45-64....................
65 or over............

3.9
7.6
24.8
14.5

Total................

53.0

2.2

Male
March
March
1940
1943

2.6

1.9

2.7
2.4
16.1
12.9
2.3

52.0

40.0

36.4

4.7
5.3
23.2
16.2

2.5
4.9
18.7

12.0

Female
March
March
1940
1943
2.0

1.4
2.7
2.5
0.3

2.9
7.1
3.3
0.3

13.0

15.6

6.1

over. A net increase of 800 thousand has taken
place in the labor force between the ages of
14-19, while a net addition of 1,700 thousand
occurred in the 45-64 age group and 400 thou
sand in the group 65 and over. The young
people, on the whole unskilled, who would nor
mally be in school, have been attracted into the
labor market by high wages as well as the ap
peal to their patriotism. Some, of course, still
attend school and work only part-time. In the
Third District this situation may be illustrated
by Philadelphia County. A recent survey shows
that by May 1943, 40 per cent of all boys and
39 per cent of all girls, between 14 and 19 years
of age, were in the labor market, in contrast

to 33 and 29 per cent, respectively, in March
1940. The older persons, in many cases, have
been recalled from retirement to assume their
former duties.

TABLE 3: EMPLOYMENT STATUS OF THE
LABOR FORCE

United States

How much of this increase in the labor force
is “abnormal” and how much will remain after
the war, is one of the questions which must be
answered in planning for full employment. Cer
tainly, the opening of more jobs to women and
the discovery of the independence which a job
brings, will induce a part of the female addi
tion to remain, although household responsibili
ties will be a strong counter-balancing induce
ment for many to leave. In view of the greater
ability of women in certain jobs, as revealed
by the war experience, there will doubtless be
a permanent increase in the demand for women
workers in those occupations. Most of the older
workers may be expected to retire, along with
those whose retirement has been postponed for
the duration.
The “abnormal” increase in the younger
group, however, promises to present a
problem. By the time the war is over some of
them would have become a part of the labor
force anyhow. However, the youngest of these
who, under normal conditions, would still be in
school, will have little inducement to withdraw
from the labor force. Their chances for em
ployment will depend largely upon the skills
they have been able to acquire during the war
period. Even if school and college students
were to continue their studies as long as was
customary in the pre-war period, the Depart
ment of Labor estimates that there will be a
surplus of several million workers during the
one or two years of transition which will co
incide with the crucial reconversion period.
Provisions to enable the youngest of these addi
tions to the labor force to return to school for
more formal education would seem particularly
necessary to avoid permanently handicapping
this group. Of course, one of the most impor
tant factors in determining the size of the post
war labor force will be general economic con
ditions. If conditions are generally unfavorable
economic necessity may compel many, who
otherwise would retire, to remain in the labor
market.
The war has altered radically the distribu
tion of the labor force between employed and
unemployed. This may be seen in Table 3.
The large labor reserves of unemployed exist
ing in 1940 have been reduced to a minimum,

Pennsylvania, New Jersey,
and Delaware
Philadelphia

Employed

Unemployed

85.1%
98.3

14.9%
1.7

82.3
98.1

17.7
1.9

82.4
98.9

17.6

1.1

comprising largely those who are between jobs,
temporarily ill, or unemployable. Although this
is true for the United States in general, it is
not true for every area within the country.
One of the greatest administrative problems
of the war has been the utilization of labor sur
pluses existing in parts of the country where
specialized productive facilities for war supplies
were lacking. One method of solution has been
the construction of additional plants by the
Government; another has been the conversion
of small plants, or sections of large plants, to
manufacture war equipment under sub-contract.
Still another method has been to utilize plants
in these areas requiring little or no conversion
either because their peacetime products, such
as furniture or textiles, could be used by the
armed forces or because they performed simple
operations such as casting or stamping metal
parts. Recognizing these possibilities for more
efficient use of the national labor supply, the
War Production Board issued a directive in
October 1942, prescribing that war procure
ment agencies should not let war contracts in
areas of acute labor shortages when the work
could be done elsewhere. The War Manpower
Commission was given the authority to deter
mine the nature of the labor supply situation
in each area. Since January 1943 the War Man
power Commission has been classifying areas
and has recommended the types of contracts
which should or should not be awarded. The
results of these attempts to change the indus
trial structure ,of an area to coincide with the
labor supply by expanding, limiting, or chang
ing the composition of production will influence
the employment opportunities and problems
facing these areas after the war. They are also
suggestive of what might be done in other ways
to help solve the problem of unemployment.
The changing labor supply situation in War
Manpower Commission areas within the Third
District is shown in the accompanying chart.
Page Seven

LABOR SUPPLY
THIRD FEDERAL RESERVE DISTRICT
AREA: WMC

19 4 3

TRENTON
WILMINGTON
CHAMBERSBURG
ALLENTOWN-BETH.
HARRISBURG
LANCASTER
PHILADELPHIA
READING
LEBANON
YORK
BERWICK
WILLIAMSPORT
JOHNSTOWN
SCRANTON

of jobs to the available labor resources and the
adjustment of available labor resources to the
jobs. As well as undertaking job simplification
to scale down heavy tasks to women’s strength,
industrial enterprises have broken complicated
processes into a series of simple tasks that can
be performed by unskilled or semi-skilled work
ers. Many industrial establishments introduced
formal in-plant training schools manned by spe
cialized instructors to replace the slower, less
efficient “watch and learn” training methods of
the pre-war era. War Manpower Commission
offices in the district report that the greatest
demand is for unskilled workers who can be
trained. These industrial schools have been
used to upgrade experienced workers as well
as to train inexperienced workers. The aircraft
and shipbuilding industries in the district, in
particular, have developed these facilities be
cause their expansion was so rapid that they
quickly absorbed all available labor with the
necessary skills.

ATLANTIC CITY
ALTOONA

I ACUTE - NEW CONTRACTS OR
I RENEWALS PROHIBITED IF
I AVOIDABLE.

V//////////A

SLIGHT SURPLUS - NEW CONTRACTS TO DC
COMPLETED WITHIN SIX MONTHS PERMITTED

LARGE SURPLUS - RENEWALS, NEW CONTRACTS,
NEW PRODUCTION FACILITIES NEEDED.
'

Source; Department of Commerce. Bureau of foreign and Domestic Commerce.

It can be seen that there are still large surplus
labor supplies in the densely populated anthra
cite counties and in the Johnstown-Altoona re
gion; and yet unfilled labor demands exist in
both areas. This apparent paradox is a result of
the fact that the demand is for skilled miners
and for persons capable of undertaking heavy
work in railroad shops and steel mills while the
labor surplus consists largely of women. In ac
cord with the WPB directive, local authorities
have sought additional war contracts and war
industries which could use the existing labor re
sources in these regions. For example, several
plants making aircraft parts have recently been
built in Scranton. However, the surpluses have
been so large that out-migration has been en
couraged to areas with more critical manpower
shortages. In one instance, miners were trans
ferred from nearly depleted mines in Lacka
wanna County to richer mines in Luzerne
County.
Expanded employment alone was insufficient
to supply all of our military and civilian needs.
Manpower resources have had to be stretched
in other ways. Among these is the adjustment
Page Eight

Within the district, colleges and schools have
greatly expanded their vocational education fa
cilities. In Atlantic City, welding is taught to
those who intend to seek jobs in Philadelphia,
Camden, and Trenton. In Philadelphia, enroll
ments have been large both in the pre-employ
ment classes and in the supplementary training
classes of the Vocational Training Program for
War Production given in the public schools. In
Pennsylvania there is a Federal-State program
for training sales and other store help. Thus,
one of the district’s greatest assets, its “know
how,” is being improved. But at the same time,
other areas also are acquiring this asset by
offering similar training to their workers. It
is estimated that the national training program
throughout the country has equipped labor with
more skills in the past three years than are nor
mally acquired in ten. If these skills can be
adapted to peacetime production we may look
forward to a tremendously increased standard
of living, provided, of course, that these skills
are fully utilized.
These wartime innovations of in-plant train
ing and job simplification will probably be per
manent and may well have significant effects
on our post-war labor force. They will greatly
increase labor mobility by reducing the costs of
training new workers and facilitating readjust
ment on the part of the worker. Furthermore,
it seems likely that the semi-skilled worker will
achieve a greater prominence than ever in our
industrial structure.

Another method used to stretch the labor
supply has been to expand the work-week con
siderably. The work-week of factory workers
in March 1940 is compared with that of March
1943 in Table 4.
TABLE 4: WEEKLY WORKING TIME OF
FACTORY WORKERS
(Average hours)

United States....................................
Pennsylvania....................................
Philadelphia......................................

March
1940

March
1943

Per cent
Change

37.6
36.7
37.8

44.7
44.7
46.3

+19

+22
+22

In March 1943, factory workers throughout
the country averaged 19 per cent longer hours
than in the corresponding month of 1940. In
Pennsylvania and Philadelphia the average
work-week was increased still more—by 22 per
cent. This lengthening of the work-week is a
wartime change which is not expected to be
continued in the future; in fact, in view of the
rapid increases in productivity developed over
the past few years, the average work-week
after the war may be below that of 1940.
Finally, the tremendous output has been
achieved through radically changing the dis
tribution of employed workers among the vari
ous industries and occupational groups. Work
ers leaving “non-essential” industries for the
armed forces have not been completely re
placed, nor have those shifting from civilian
to war industries. Additional workers have been
distributed among the various industries in ra
tios vastly different from the pre-war propor
tions. For the three states, these shifts are
shown for the three basic industries in Table 5.
TABLE 5: ESTIMATED EMPLOYMENT IN
PENNSYLVANIA, NEW JERSEY, AND DELAWARE

(Thousands)

March
1940

Per cent

November
1943

Per cent

Manufacturing (excluding
Government).........................
Mining.........................................
Agriculture.................................
All other......................................

1,651
228
255
2,768

33.7
4.6
5.2
56.5

2,5211
193
257
2,952

42.6
3.3
4.3
49.8

Total........................................

4,902

100.0

5,923

100.0

Private manufacturing employment in the
three states has expanded by over 50 per cent,
and instead of employing 34 per cent of all em
ployed as in 1940, it now employs 43 per cent

of the total. Mining employment suffered an
absolute decline of 16 per cent, and in Novem
ber 1943 represented only 3 per cent of the total
employment in contrast to 5 per cent in March
1940. This was due primarily to developments
in the coal industry. In the beginning of the na
tional defense effort, coal production in Penn
sylvania was increased largely by lengthening
the work-week rather than by increasing em
ployment. With work opportunities in other
activities opening up, many unemployed miners
left the coal fields for war production centers.
Employed miners also left for the better pay
and working conditions which could be obtained
elsewhere. Selective Service drains in this in
dustry were relatively severe since almost all
of the employment is male. As was mentioned
above, the bituminous and anthracite fields in
Pennsylvania are now facing a serious shortage
of skilled miners, a complete reversal of the
situation which has prevailed for over a
decade.
Agricultural employment in the three states
expanded very little between March 1940 and
November 1943, and such expansion as occurred
is due in part to seasonality. Despite the small
increase, agriculture gave employment to only
4 per cent of the gainfully occupied in 1943, as
compared with 5 per cent in 1940.
A more complete picture of employment
shifts which have taken place over the war
period is shown in Table 6, where figures for
Philadelphia are given.
Net losses of 48 thousand have occurred in
trade, finance, and service; 29 thousand in con
struction; and 2 thousand in “other” industries;
while net increases of 238 thousand have oc
curred in manufacturing; 13 thousand in trans
portation, communication, and public utilities;
and 34 thousand in Government, exclusive of
the armed forces. Thus, in November 1943,
manufacturing utilized half of the employed
labor force in Philadelphia, in contrast to 38
per cent in 1940; employment by the Govern
ment increased from 3 to 5 per cent of the em
ployed workers; trade, finance, and service was
reduced from 45 to 34 per cent; construction
from 5 to 2 per cent; and transportation, com
munication, and public utilities remained un
changed at 7 per cent. Together with these
changes in the industrial distribution of the em
ployed there has occurred a corresponding
occupational redistribution. In Philadelphia,
Page Nine

TABLE 6: CHANGE IN EMPLOYMENT OF TIIE
LABOR FORCE
PHILADELPHIA AREA—MARCH 1940—NOVEMBER 1943

(Thousands)

Total

Trade, finance, service... .
Transportation, communication, and public utili-

November 1943
March 1940
Male Female
Male Female Total

402
481

298
286

104
195

640
433

430
208

210

79
53

69
52

10
1

92
24

77
24

ConstructioD............ ...........
Government (excluding
armed forces)..................
All other...............................

30
21

6
1

Total employed.......... 1,073

756

317

1,279

225

799

480

substantial declines have taken place in the
proportion of service workers, clerical and sales
workers, professional and semi-professional
workers during the war period. The propor
tion of workers employed as operatives, la
borers, craftsmen, and foremen has shown off
setting increases, while the group comprising
proprietors, managers, and officials has re
mained relatively constant.

In-plant training and job simplification have
greatly eased this wartime transfer of workers.
Transferring pre-war workers back to their
peacetime jobs during the period of transition
should not prove too difficult. However, the al
location of new workers who entered the labor
market during the war may not be easy to
make. In all probability, manufacturing will
play a larger part than formerly, both in Phila
delphia and the Third District, but the propor
tion of all employed workers engaged in manu
facturing and their distribution among the prin
cipal industries is bound to change during the
shift from war to peace. For example, drastic
declines may be expected in shipbuilding but
some of the new facilities for steel manufactur
ing may be retained in the district’s industrial
structure. In the long run, our post-war pat
tern will be determined largely by the degree
to which new war facilities can be converted to
peacetime uses and the level at which income
in the district and the country can be main
tained.

Business and Banking
Continued from page 1

duction of coal increased in April, reflecting
gains at both anthracite and bituminous mines.
The output of bituminous coal also was larger
than a year earlier, while that of anthracite was
virtually unchanged.
Employment, payrolls, and working time in
Pennsylvania factories have receded somewhat
from wartime peaks. The number employed
decreased slightly further from March to April,
and was about 2 per cent less than a year earlier.
Although payrolls in most major lines were
smaller in April than in March, the only de
clines from a year ago were in the textile and
leather products industries, where manpower
and material shortages have restricted opera
tions over a considerable period. The income of
wage earners at reporting factories in Penn
sylvania averaged $46.56 a week, as against the
record high of $47.23 in March, and $43.90 in
April 1943. Average hourly earnings remained
at a wartime peak of $1.04, but the average
number of hours worked per employee declined
from 45% to a little under 45 a week.
Page Ten

Although the combined production of anthra
cite and bituminous coal through April was
larger than in the first four months last year,
small reserves and the prospect of a continuing
loss of manpower suggest further tightening of
the supply situation in coming months. Stock
piles of industrial coals still are below what is
considered a minimum reserve of about thirty
days’ supply. Supplies of heating coals are ac
cumulating slowly at the mines and in retail
storage yards in anticipation of next season’s
demand.
Building activity continues restricted to warimportant facilities and a few projects essential
to maintenance of the civilian economy. With
the bulk of construction in these categories near
ing completion, demand for the principal build
ing materials has slackened considerably. In
this district, contract placements in April were
nearly one-third less than in 1943, with the most
pronounced reductions occurring in contracts for
industrial facilities and multiple-family dwell
ings. Total awards in the four months ended
April were less than one-half the dollar volume
of a year earlier, and the smallest for the period
in almost a decade.

EMPLOYMENT AND PAYROLLS IN PENNSYLVANIA

DEPARTMENT STORE SALES AND STOCKS
THIRD FEDERAL RESERVE DISTRICT

PERCENT
STOCKS
PAYROLLS

EMPLOYMENT

1938

1940

1942

1943

1944

The outlook for agriculture in this district has
improved considerably in recent weeks. Field
work has progressed rapidly, although opera
tions still are behind schedule, owing to the late
start and a tight labor situation in some sec
tions. Growing conditions in May were de
cidedly more favorable than in April, when ex
cessive rains and subnormal temperatures de
layed the germination of seeds and retarded the
development of early truck crops. Orchard
fruits bloomed unusually late, but in most in
stances escaped injury from frost. The condi
tion of winter grains has continued to improve,
and above average yields of wheat, rye, and
barley are in prospect. Pastures and meadows
have grown rapidly, relieving to some extent the
acute shortage of feed grains.
Distribution of raw materials and manufac
tured goods by rail continues heavy locally and
nationally, although gains over 1943 are narrow
ing as operations of the carriers approach peak
wartime efficiency. According to the Associa
tion of American Railroads, freight traffic in
the United States exceeded 60 billion ton-miles
in April, an increase of 2y2 per cent over a year
earlier. Gains in the first two months of 1944
amounted to more than 9 per cent, but by March
the margin of increase had narrowed to about
3 per cent. The number of freight cars loaded
in this section continues materially greater this
year than last.
Wholesale trade was less active in April than
in March, although sales remained somewhat
above the level of a year ago. Dollar volume
in the first four months was about one-tenth

1939

1940

194 I

1942

1943

1944

greater than in the 1943 period, reflecting gains
in all reporting lines except drugs. Inventories
increased slightly further in April and at the
close of the month showed a gain of 11 per cent
over a year earlier.
Retail sales by reporting department and
women’s apparel stores in this district on an
adjusted basis declined substantially from
March to April, while sales by men’s apparel
and shoe stores increased. Allowing for the
earlier date of Easter, dollar volume at depart
ment, apparel, and shoe stores was considerably
larger in April this year than last. Sales by fur
niture stores increased in the month, but were
less than in April 1943. Inventories in most
lines declined more than usual from March to
April, although they were sharply larger than a
year earlier except at shoe and furniture stores.
Banking conditions. Tabulation of sales of
savings bonds and savings notes to nonbank in
vestors, applying against goals in the Fifth War
Loan Drive, will get under way on the first of

Pennsylvania
(Dollar amounts in millions)
Total sales
Quota..................................................
Sales....................................................
% attained........................................

Third

War Loan Drives
Fourth

Fifth

$1,071
1,205

$ 978
1,069
109%

$1,082

112%

Sales to individuals
Quota..................................................
Sales....................................................
% attained........................................

$ 388
405
104%

$ 423
396
94%

$ 442

Sales of E bonds*
Quota..................................................
Sales....................................................
% attained........................................

$ 225
174
77%

$ 217
224
103%

$ 224

♦Included in total sales and sales to individuals.

Page Eleven

Page Twelve

SECURITIES TO BE OFFERED DURING FIFTH WAR LOAN DRIVE
U. S. War
Bonds,
Series E

U. S. Savings
Bonds,
Series F

Issue price.................................................

75% of maturity
value

74% of maturity
value

Dated...........................................................

First day of month
in which pur
chased

Feb. 1,1944
(Interest from
June 26, 1944)

Due...............................................................

10 years from
issue date

12 years from
issue date

3 years from
issue date

2H%
Registered form
only

if Varies—2.53% if
Rate............................................................. Varies—2.90%
held to maturity
held to maturity

Registration...............................................

Resistered form
only

$25 to $1,000
Denominations........................................ (Maturity
value)

Resistered form
only

$25 to $10,000
(Maturity value)

U. S. Savings
Bonds,
Series G

100%

Treasury Savings
Notes,
Series C

1M%
Treasury Notes,
Series B-1947

Va% Ctfs. of
Indebtedness,
Series C-1945

100% and
interest

June 26, 1944

June 26,1944

Mar. 15,1970

June 15,1954

Mar. 15,1947

June 1,1945

Varies—1.07 % if
held to maturity

2 H%

1)i%

In inscribed form
only

Bearer or regis
tered form

Bearer form
only

100%

*V2% ,
Treasury Bonds
of 1965-70

2%
Treasury Bonds
of 1952-54

$500 or $1,000
$500 or $1,000
sales, 100%
sales, 100%
Over $1,000,100% Over $1,000,100%
and interest
and interest

$100 to $10,000 $100 to $1,000,000 $500 to $1,000,000 $500 to $1,000,000 $1,000to $1,000,000 $1,000 to $1,000,000

Eligible (or subscription by indi
viduals ....................................................

yes

Yes

Eligible for subscription by
commercial banks..............................

Yes

Acceptable in payment of Federal
(income, estate, or gift) taxes
prior to maturity................................

Yes, at stated re
demption values
during and after 2nd
calendar month after
purchase

Federal estate
taxes only, on
death of
owner

At holder’s option

At holder’s option At holder's option
only, after 6
only, after 6

60 days
months, on 1
months, on 1
Redeemable for cash prior to only,after
from issue date at month's notice at month's notice at
maturity.................................................. stated redemption stated redemption stated
redemption

Use as collateral.....................................

Salable in open market.........................

Amount for which eligible investor
may subscribe.....................................

values

values1

For loans from
banks only

Yes

No limit

No limit/ except
for commercial
banks*

No limit; except
for commercial
banks*

No limit

Not more than
$5,000 maturity
value in one cal
endar year

Not more than $100,000 issue
price of Series F and G together
in one calendar year/ for
commercial banks see circulars

JUpon death of owner redeemable at 100% after six months from issue date,
if application for redemption is made within four months after decease.

At Government’s
At Government’s
At holder’s option
option only, on or option only, on or
only, after 6
after Mar. 15,1965, after June 15,1952,
months, at stated
at 100% and
at 100% and
redemption values2
interest
interest

2At issue price only if commercial bank is holder for own account,
*See offering circulars.

June. Offering of the marketable issues—2y2
and 2 per cent bonds, 114 per cent notes, and %
per cent certificates—starts June 12 and con
tinues through July 8. The over-all quota of
$1,082 million announced recently for Pennsyl
vania is the highest for the state thus far, but
was exceeded by actual sales during the Third
Drive and closely approached in the Fourth.
Comparisons of quotas and sales in recent drives
are shown in the table on page 11.
Customers’ deposits at reporting banks in lead
ing cities of the district have expanded consid
erably in recent weeks, despite substantial re
payments on loans and active demand for cur
rency. Adjusted demand deposits, comprising
balances of individuals, business concerns, states
and local governments, moved up $80 million
to $1,747 million from April 19 to May 24.
This sets a new high point for the year and
comes within $46 million of the record peak
attained just before the Third War Loan Drive.
Heavy withdrawals from war loan accounts
carried total deposits downward. This net loss

of funds was met largely through reduction in
holdings of short-term Governments. The total
investment in Governments still exceeds hold
ings before the last drive, but loans to carry
such securities are lower.
For the district as a whole net payments to the
Treasury and currency demand have absorbed
more than $70 million of funds in late weeks,
but gains in commercial and financial interdis
trict transactions were larger. On balance,
therefore, reserves of all member banks in
creased somewhat. Excess reserves are held
chiefly by the country banks.
Substantial expansion in earnings assets of the
Federal Reserve Bank between April 19 and
May 24 was due principally to participation in
the larger volume of Governments held in the
Open Market Account of the System. Loans
and advances to member banks also increased,
while the volume of Treasury bills held under
repurchase option declined slightly.

Ownership of Demand Deposits
The latest survey of the ownership of de
mand deposits of individuals, partnerships, and
corporations, made as of the end of February in
cooperation with more than 250 commercial
banks in the Third Federal Reserve District, con
firms findings in the survey conducted seven
months earlier. Somewhat over one-half of these
balances is held by nonfinancial business con
cerns; about one-seventh is in insurance com
pany, trust fund, and other financial accounts;
and slightly less than one-third is in personal
deposits including those of farmers. Propor
tions for the country as a whole were much the
same. Within the district variations were con
siderable, personal accounts making up onefifth in Philadelphia, as against two-fifths for
the remainder of the area.
For all banks in the district demand deposits
of customers are estimated to have risen about
$90 million, or 3 per cent, to over $3 billion dur
ing the seven months between surveys. The
small size of this increase and certain of the
changes in the sub-groups reflect in part the fact
that the survey last July was well along in a
between-drives period, while the last coincided
with the close of the Fourth War Loan Drive,

during which deposits were drawn upon actively
to pay for new Government securities.
Despite these circumstances, the only classes
of deposits to show declines were those of insur
ance companies, utilities, and unclassified non
financial businesses. Total nonfinancial business
deposits increased less than 2 per cent, differing
little from the slight decline shown in the figures
for the country as a whole. Financial accounts
in the district increased about 11 per cent, as
withdrawals by insurance companies were more
than offset by larger balances in trust and mis
cellaneous accounts; this gain ran counter to the
decline of 3 per cent over the seven months in
national estimates.
Personal demand deposits increased over 1
per cent in this district and 11 per cent in the
United States. To some extent these gains re
flect seasonally higher balances of farmers in
agricultural sections of the country, a factor
which would have considerably less influence in
this highly industrial area. The disproportion
between the increases probably arises also from
the fact that large personal balances, which de
clined generally, are relatively more important
in this district.
Page Thirteen

The very large accounts declined in almost all
classes of deposits. This explains some loss in
deposits at the largest banks, shown in the sur
vey, and the net gain in country bank deposits
during the period under review. Shrinkage in
large balances also suggests the important part
played by large business concerns, insurance
companies, trust funds, and wealthy individuals
in the war loan drive which closed the period.
Small accounts, both business and personal, gen
erally showed substantial increases. It is clear
that there still remains untapped a substantial
source of funds, particularly in small accounts,
for nonbank purchases of Government securities
in future War Loan Drives.
Over the war period practically all banks
have gained deposits as their holdings of Gov
ernment securities increased. While customers’
balances are drawn down temporarily during
the war loan drives, the funds are soon returned
to ordinary channels when the Government dis
burses them for war purposes. Banks will enter
the post-war period with a record volume of de
posits and the over-all volume will probably
continue high. But as the economy is read
justed to peacetime conditions, some shifting of

Page Fourteen

funds is to be expected, meaning that some
areas and some banks may experience a perma
nent loss of their war-derived deposits. For each
bank the problem is to appraise the position of
its community and its customers and the prob
able effect on its own deposits, permitting suit
able adjustments in loan and investment pol
icies. Deposit surveys of the Reserve Banks
provide a factual background against which the
individual banker can measure the status of his
own institution. A more complete analysis of
deposit growth and ownership is now in prep
aration and will be made available shortly.
Ownership of Demand Deposits of Individuals,
Partnerships, and Corporations
Third F. R. District
(Amounts—millions $)

Feb. 29,
1944

July 31,
1943

Change
%

Nonfinancial business:
Mfg. and mining..........
Pub. utilities, etc..........
Trade..............................
Other...............................

$ 806
232
374
170

$ 749
257
369
180

+ 8%
—10

Total nonfinancial............
Financial business............
Nonprofit organizations..
Personal (incl.farmers)..

$1,582
438
92
952

$1,554
393
87
940

Total*..............................

$3,066

$2,974

+ 3%

+
—

1
6

2%
+11

+
+

6
1

Distribution
Feb.

July

26%

25%
9

8
12
6

12
6

52%
14
3
31

52%
13
3
32

100%

♦Includes small amount of foreign deposits not shown separately.

BUSINESS STATISTICS
Employment and Income

Production

in Pennsylvania

Philadelphia Federal Reserve District

Industry, Trade and Service
Not adjusted

Adjusted for seasonal variation
Per cent change
Indexes: 1923-5 =100
Apr. Mar. Apr.
1944 1944 1943

INDUSTRIAL PRODUCTION 151p 150
MANUFACTURING.............. 155p 155
247p 244
Dnrnhlp jrnflds
92p 93
Metal products....................... 188 184
68
Textile products.....................
68p
Transportation equipment.. 643 647 r
Food products......................... 115p 118
102
Tobacco and products..........
97
34p 37
Building materials..................
Chemicals and products. . . . 158p 155
Leather and products........... 109p 104
Paper and printing................
93
94
Individual lines
93
89 r
Pig iron......................................
Steel............................................ 130 131r
Silk manufactures..................
85
87
Woolens and worsteds.........
62p 64
46
Cotton products.....................
42
51p 53
Carpets and rugs....................
Hosiery......................................
67
71
Underwear................................ 144 136
Cement......................................
26p 29
54 r
Brick..........................................
48
33
Lumber and products...........
32
Slaughtering, meat packing.
Sugar refining..........................
Canning and preserving....
Cigars........................................
Paper and wood pulp............
Printing and publishing....
Shoes..........................................
Leather, goat and kid...........
Paints and varnishes.............
Coke, by-product...................
COAL MINING........................
Anthracite................................
Bituminous...............................
CRUDE OIL..............................
ELEC. POWER—OUTPUT..
Sales, total...............................
Sales to industries..................
BUILDING CONTRACTS
TOTAL AWARDSf.................
Residential.............................
Nonresidentialf......................
Public works and utilities'}"- -

151
155
251 r
91 r
185r
74
649 r
98 r
114
43
154
109r
90
94
133

Apri 1944
fr 3m
Mo.
ago

Year
ago

1
0

+ 2
- 1
- 1
- 2
- 5
- 8
+ 2
+ 4
- 1
+
+

4
1

— 2
— 2
86
—
65
3 — 4
56
7 — 24
5 — 10
57
6
81
— 17
12
6
164
—
50 -12 — 49
-10
21
61
—
29 - 4 + 9
— 4* + 7*
127 133
96 - 4 + 32
85
61
27 +40 +209
147p 149 117r - 2 + 26
96 101 113 - 5 — 15
83
82
84 r - 1 — 2
95
96
91 - 1 + 5
117 120 125 - 2 — 6
lOOp 89
94 r +12 + 7
95r 83 - 3 + 10
92
I67p 163 156 + 3 + 7
85
80r 83 r + 6 + 1
0
81
77
81 + 5
113 101r 103r +12 + 9
374 376 416 - 1 - 10
0
419 420 403
+ 4
424 443 397 - 4 + 7
358 351 306 + 2 + 17
35
15
43
69

34
22

40
47

93
67

112

115

1
2

+ 2
-29
+ 6
+48

* Unadjusted for seasonal variation.
t 3-month moving daily average centered at 3rd month.

Apr. Mar. Apr.
1944 1944 1943

149p 152
152p 156

+ 3
+ 3
+ 1
+ 4
+ 5
— 3
+ 3
+ 18
— 17
— 258
+
— 3
+ 4

_
+ 2
+ 2
— 91
—
+ 18
15
— 21
—
+ 3
+

Employment

1944
from
4
mos.
1943

—
+
+
—
+
—
—
—
—
—
+
+
+
+
+
—
+
+
—
+
+
+
—
+
—
+
+
+

180 184
65p 70
665 678
Hip 114
88
94
34p 34
156
160p
107p 107
96
95

149r
153r

178r
71
669 r
93 r
104
43
156
108r
91

105 102r 106
137 140 139
89 r 85
83
1
57p 62
60
21
49
58
44
54
50p
56
3
10
74
67
81
8
148
141
161
55
26p 23
50
20
52
51
64
32r 28
30
13
122r 110
10* 118
37 124 127
94
110
93
36
50
26 129p 133
98r
88
93 103
17
1
85
83
85r
98
5
97
93
125
5 117 127
0
97p 88
91r
97 r 87
96
7
6
174p 169 162
80
5
83
82 r
1
77
81
81
5 103 103r 94r
11
385 384 428
8
410 428 395
10
437 439 409
13 361 333 309

Allentown...........
Altoona...............
Harrisburg..........
Lancaster............
Philadelphia. . .
Reading...............
Scranton.............
Trenton...............
Wilkes-Barre___
Williamsport....
Wilmington........
York.....................

Fac tory
employment

Fac tory
pay i oils

Mar.
1944

April
1943

- 3
- 1
- 2
- 2

- 5
+ 1
- 3
- 8
+ 6
- 2
- 4
+23

+
-

- 4

-12

- 2
- 2

- 1
- 2
- 2
- 2

Mar.
1944
2

5
1

Mar.
1944

April
1943

Mar.
1944

+ 4
+ 6
+ 2
+13

+ 55
+ 40
+ 28

+
-

+ 90

- 75
+ 24
+258
+225
+431

+ 26
+ 91
- 36
+135
- 35
+106
- 2

+ 17
- 93
+310
- 18
- 11
- 17
+377

+12

4
5
4

+ 3
- 1
+31

2
1
0
+10

- 3
- 8
+ 4
- 1
+ 6
- 5

- 7
-10
- 3
- 8
- 5
- 4
- 1
- 7
- 7
- 2
- 4
- 9
* Area not restricted to the corporate limits of cities given here.

133
185
49
79
42
83
133
97
112

103

100
102
102

- 1
- 1
- 1
- 1
+ 6
+ 3
- 1
0

- 1
- 2
0
0

- 3
- 2
- 8
- 9
- 6
-19
- 2
+ 3
- 3
- 6
+ 4
- 6

326
488
89
365
109
264
242
139
151
142
165
172
173

+ 2

- 2
- 3

-10

+
+
+

4
4
1
4
0
0

- 2
+1
- 1
+ 6

+ 4
+ 4
- 2
+ 6
+ 3
-17
+15
+ 4
0
- 1

+10

+ 1
- 5

30
17
40
42

89
62
115
106

Manufacturing
Employment* &

TOTAL..................................... 119
Iron, steel and products. . . 129
Nonferrous metal products. 199
Transportation equipment. 172
81
Textiles and clothing..........
Textiles.................................
74
Clothing................................ 107
Food products....................... 120
Stone, clay and glass..........
87
Lumber products..................
51
Chemicals and products.. . 118
Leather and products.........
74
Paper and printing.............. 102
Printing.................................
94
Others:
Cigars and tobacco............
55
Rubber tires, goods........... 149
Musical instruments.........
92

- 2
- 2
+ 3
0

1
2
1
0

- 7
- 7
- 9
+ 9
- 2
- 2
- 4
-14
+ 1
+ 3

- 2
- 2
0

-13
+19
+25

+1
0

199
273
423
302
116
107
160
178
130
80
210

113
148
130
74
299
167

+ 4
+ 4
+ 9
+ 8
- 6
- 5
- 7
+15
+ 7
+ 8
+ 5
- 9
+ 8
+ii

- 9
- 4
+ 3

-12
+31
+34

2
2

3
7
7
8
3

0
0

- 1
- 4
- 1

Hours and Wages

Mar.
1944

April
1943
+10

-14
- 4
-13
b 2
b 3
b 7
- 6
b 2
b 9

+ 2
- 5
-17
— 2
+ 6
-15
- 1
- 7
- 2
+ 2

+ 9
+ 1

- 5
- 5

- 1
- 1
- 1
- 2
- 2
- 2
- 3
- 2

* Figures from 2870 plants.

Delfits

April
1943

Payrolls*

Per ent
Per sent
Apr. chang< from Apr. chang from
1944
1944
index Mar. Apr. index Mar. Apr.
1944 1943
1944 1943

Indexes: 1923-5 =100

Factory workers
Averages
April 1944
and per cent change
from year ago

Re tail
Sa les

April
1943

GENERAL INDEX............
Manufacturing......................
Anthracite minipg...............
Bituminous coal mining. . .
Building and construction..
Quar. and nonmet. mining..
Crude petroleum prod........
Public utilities......................
Retail trade...........................
Wholesale trade....................
Hotels ....................................
Laundries...............................
Dyeing and cleaning...........

33
- 63 - 71
77
62
14
_
_
44
— 62 — 67
40
80
63
—
—
p—Preliminary,
r—Revised.

Buil ling
pernaits
va] ue

Indexes: 1932 =100

1
2

Local Business Conditions*
Percentage
change—
April
1944 from
month and
year ago

Payrolls

Per
Per sent
Apr. chang sent
efrom Apr. chang efrom
1944
1944
index Mar. Apr. index Mar. Apr.
1944 1943
1944 1943

-10

+ 5
-17
0

+23
-23
- 3
+ 5
-19
+ 7
-20
0
+1

TOTAL.............................
Iron, steej and prods...
Nonfer.metal prods.. ■ Transportation equip..
Textiles and clothing..
Textiles........................
Clothing.......................
Food products..............
Stone, clay and glass..
Lumber products.........
Chemicals and prods...
Leather and prods........
Paper and printing. . .
Printing........................
Others:
Cigars and tobacco. .
Rubber tires, goods..
Musical instruments.

Hourly
earnings*

Weekly
working
time*

Weekly
eamingst

Aver
age Ch’ge Aver Ch’ge Aver Ch’ge
hours
age
age
44.8
46.3
45.0
47.1
38.4
39.2
36.3
43.0
40.8
44.1
45.5
41.3
43.3
40.2
39.4
43.3
48.9

* Figures from 2720 plants.

0
1
1
2

—
— 5
— 48
— 2
—
+ 4
0

+ 3
+ 1
+ 1
+ 1
—
—

7
1
0

$1 .046 + 6 $46.56
1.103 + 5 51.06
.987 + 7 44.39
1.212 + 8
57.09
.755 + 8 28.94
.771 + 6 30.26
.715 +11
26.15
.813 + 8 35.08
.914 + 6 37.04
.757 + 9 33.04
1.049 + 5 47.70
.740 + 5 30.54
.899 + 5 39.24
1.048 + 6 42.41
.619
1.028 +12
.972 + 8

24.38
44.54
47.52

+ 6
+ 5
+ 6
+ 6
+ 2
+ 2
+ 3
+10

+
+
+
+
+

9
9
6

7
7

1
+10

t Figures from 2870 plants.

Page Fifteen

Distribution andJPrices
--------i—--==
Adjusted/for seasonal variation
.. J*4*ycent che
nge
—i*-J'------------Apr. 4&44
Apr. Mar. Apr.
1944
$r
1944 1944 1943
from*

Per cent change
Wholesale trade
Unadjusted foi seasonal
variation

Sales
Total of all lines.....................
Drugs.......................................
Dry goods..............................
Electrical supplies...............
Groceries.................................
Hardware...............................
Jewelry....................................
Paper.......................................

1944
from
4
Month Year mos.
ago
ago 1943
Apr. 1944
from

- 3
- 7
- 5
- 9
_ 2
+13
- 9
- 3

++++
Paper.......................................

- 4

+10

-11

+ 4
+13
+ 8

+ 8
4- 6

.
irr,

RETAIL TRADE

Sales
Department stores—District......................
Philadelphia.............
Women’s apparel...........................................
Men’s apparel.................................................
Shoe...................................................................

+ 2
+18
+ 4

Inventories

+12
+12

ohmw m

Hardware...............................

Month Year
ago
ago

•

+10

+ 2
- 7
- 4

Inventories

Indexes: 1935-1939=100

+10
+21

-13

Source: U. S. Department of Commerce.

177
176
178
164
147

146
146
170
74

149 126
149 125
171r 141 r
80
93

148
147
129
146
147

8
-10
-20

+ 7
+ 5*

—
—
—
—
+

Prices
Basic commodities
(Aug. 1939=100)....
Wholesale
(1926=100)................
Farm............................
Food.............................
Other............................
Living costs
(1935-1939=100)... .
United States..............
Philadelphia...............
Food...........................
Clothing.....................
Fuels...........................
Housefurnishings. . .
Other..........................

Per cent change from
Apr.
1944 Month Year Aug.
1939
ago
ago
181

104
123
105
98

0
0
0
0

125
123
133
136
110

+1
+1
0
0
0

132
119

+ 5
+ 2

+ 81

+ 39

- 1
- 3
+ 2
0

+
+
+
+

6
7
4
7
4

+102

+ 56
+ 23
+
+
+
+
+
+
+

26
26
42
37
14
31
18

k adjusted

Apr. Mar.
1944 1944

mos. ;
1943' »

/
L>

'k/o

Apr.
1943

G
162p
158
143
165
158

+20

+ 4

’■fe
*\>

FREIGHT-CAR LOADINGS
Total...................................................................
Merchandise and miscellaneous...
Merchandise—l.c.l.........................................
Coal...................................................................
Ore.....................................................................
Coke..................................................................
Forest products..............................................
Grain and products.......................................
Livestock..........................................................
MISCELLANEOUS
Life insurance sales................................
Business liquidations
Number..........................................................

149
137
90
191
301
256
144
129
148

143
137
89
143
150

122

2
2
1
7
2*

177

151
149
169
82

130
128
141 r
104

+16
+17

+20
20

—24*

+ 6
+ 4

+16
+ 7
- 2
- 3

+ 9
+37

+15

+19

-85*
—76*
-14

135
132
153

115

107

0
0

207

151
146
149
142
179

+51
+ 3
+ 13
+ 11
+30

+100

178

+13
+ 8
- 7*

158p 162
150
160
+34 A55
190
- 6 '147
144
- 6 182
150

+33

+ 4

+ 50*
+517*

Check payments...............................................

+11

+ 6
+ 1
+ 4
+ 11

141
135
87
172
199
247
128
116
114

220

+ixrv $7+6
+ 7v V<P/4.

+10
+11

142
135
90
153
156
207

134
132
89
147
66

134
134
87
137
104
200

136

207
117
125
142

122

119

107

-80*
4
—95*
4
+ 7 174

+ 6
+10

121
120

176

108
108
105

30
16

202

Source: U. S. Bureau of Labor Statistics.
* Computed from unadjusted data.

p—Preliminary.

r—Revised.

BANKING STATISTICS
MEMBER BANK RESERVES AND RELATED FACTORS
Reporting member
hanks
000,000’s omitted

May
24.
1944

Changes in—
Five
One
weeks year

Assets
Commercial loans................... $ 243
34
Loans to brokers, etc.............
12
Other loans to carry secur...
38

— $13
- 3

Other loans...............................

2
101

+$
+
—

-$ 15

Government securities.......... $1554
Obligations fully guar’teed..
32
175

— $42

Total investments................ $1761

—$42

+$ 67

Total loans & investments. $2191
Reserve with F. R. Bank.. .
399
Cash in vault...........................
29
Balances with other banks..
70
Other assets—net...................
60

— $68
+ n
+ i
- 2
+ i

+ $52
1
+
1
- 25
5

Liabilities
Demand deposits, adjusted.. $1747
Time deposits..........................
180
U. S. Government deposits..
263
Interbank deposits.................
308
4
Other liabilities.......................
16
Capital account.......................
231

Page Sixteen

+$80
+ 3
-128
- 17
+ 3
+ i
+ i

+$140
- 41
— 32

+$158
+ 17
- 108
- 58
+
+

4
9

May 10

May 17

May 24

Changes
in five
weeks

-14.3
+15.8
+25.1

-18.4
+30.8
+ 3.0

+13.8
+ 8.6
-11.0

- 7.9
+25.5
- 9.0

- 3.3
+86.8
-33.4

Apr. 26

May 3

Sources of funds:
Reserve Bank credit extended in district........
Commercial transfers (chiefly interdistrict)...
Treasury operations...............................................

+23.5
+ 6.1
-41.5

1
1
6

Total loans............................. $ 430 —$26

Changes in weeks ended—

Third Federal Reserve District
(Millions of dollars)

-11.9

+26.6

+15.4

+11.4

8.6

+50.1

Uses of funds:
Currency demand...................................................
Member bank reserve deposits...........................
“Other deposits” at Reserve Bank...................
Other Federal Reserve accounts........................

+ 5.1
-14.0
- 3.0
+ 0.0

+ 9.9
+16.8
- 0.1
- 0.0

+ 9.6
+ 0.9
+ 4.9
- 0.0

+ 6.5
+ 5.4
- 0.4
- 0.1

+ 7.0
+ 5.8
- 4.2
+ 0.0

+38.1
+14.9
- 2.8
- 0.1

Total.........................................................................

-11.9

+26.6

+15.4

+11.4

+50.1

Member bank
reserves
(Daily averages;
dollar figures in
millions)

Held

Re
quired

Phila. banks
1943: May 1-15.
1944: Apr. 1-15
Apr. 16-30.
May 1-15.

$411
352
367
373

$343
343
357
365

$68
10
8

Country banks
1913: May 1-15
1944: Apr. 1-15.
Apr. 16-30
May 1-15.

$262
265
264
268

$179
218
219

$83
47
45
48

21
21
22

220

Ex
cess

Ratio
of
excess
to re
quired
20%

3
3

Federal Reserve
Bank of Phila.
(Dollar figures in
millions)

8 6

Changes in—
May
24,
1944

Five
weeks

Bills discounted. . . . $ 7.0
Industrial advances.
5.5
U. S. securities......... 928.8

+$ 5.1
+ 0.0
+ 60.5

+$ 2.4
+
0.7
+ 542.6

Total.........................
Note circulation... .
Member bk. deposits
U. S. general account
Foreign deposits... .
Other deposits..........
Total reserves..........
Reserve ratio............

+$65.6
+ 33.8
+ 14.9
+ 16.9
+ 6.1
- 2 8
+ 10.0
- 1.4%

+$545.7
+ 282.5
+ 21 8
+ 13.6
+ 58.9
2.3
- 173,8
-22.6%

$941.3
1227.4
640.9
26.5
138 0
5.8
1119.7
54.7%

One
year

Full text of Business Review (Federal Reserve Bank of Philadelphia) : June 1, 1944

FRASER