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pi m BUSINESS REVIEW library JUM 1 4 1946 FEDERAL RESERVE BANK OF PHILADELPHIA r - . ,• - -rf^a JUNE 1, 1946 Producing for the Civilian Market Since the end of the war the national economy has been operating at a very high level. Goods and services have continued to flow at an annual rate of $180 billion, not nearly as far below the $200 billion wartime peak as many had ex pected. Yet there is a shortage of almost every thing—shoes and stockings, milk and butter, sheets and pillow cases, carpets and rugs, refrig erators, washing machines, automobiles, and houses. Why the paradox? The situation is somewhat similar to that of the early days of the war when there was intense activity but a great disparity between goods on hand and on order. In early 1942 we were filling the supply lines with materials for war but the fighting forces had to mark time awaiting de livery of urgently needed supplies. Now we are busily engaged in loading up the arteries of commerce with peacetime goods, and civilians are standing in line at the retailers’ counters eagerly buying the increasing but inadequate supply of many end-products. contracts had to be renegotiated, supply lines had to be re-established, and in many cases manufacturers had to rely temporarily on infe rior raw materials. In the face of all these re adjustments, business enterprise has demon strated remarkable resourcefulness. Production in This District The magnitude of readjustments from war to peace is indicated by the huge wartime expan sion and the subsequent contraction. Production of goods in this district reached a wartime peak almost double the pre-war level. As shown by the accompanying chart, most of the changes occurred in durable goods. In 1939 production of durable goods in this district accounted for one-third, and nondurable goods for two-thirds of total output. By 1943 this situation was al most reversed—durable goods accounted for al most two-thirds of the total output. This is the area where the greatest difficulties have been encountered, and numerous problems of costprice relationships still remain to be solved. In numerous industries the transition from war to peace was a major operation. New Changes since the end of the war products had to be designed, inventories had to Although production had receded consider be accumulated, and machinery had to be re ably before V-J Day, nevertheless a further de placed or retooled. Emergency working crews cline occurred immediately after the surrender had to be replaced by returning veterans. Wage of Japan last August. Naturally, the sharpest Page 59 MANUFACTURING PRODUCTION THIRD FEDERAL RESERVE DISTRICT POINTS IN TOTAL INDEX j POINTS IN TOTAL --------- INDEX TOTAL OUTPUT- DURABLE GOODS NON-DURABLE GOODS contraction occurred in durable goods as a result of the immediate cancellation of billions of dollars in Government contracts. However, the retooling of productive facilities was dis patched with such speed that the flow of goods resumed an upward trend within a month or two after the end of the war. The output of non durable goods, which had expanded moderately in the war period, was not seriously affected by the change from war to peace because no great changes occurred in the character of their prod ucts despite the shifts from military to civilian use. Some of the plants in this category had virtually no transitional problems other than repackaging their products for civilian markets. In the immediate post-war months, output of civilian goods was retarded in some industries by shortages of labor; in others by shortages of materials. Material shortages in some industries were caused by labor shortages in antecedent industries normally producing the required parts or components. Some industries had to contend with shortages of both labor and mate rials. Textile and apparel establishments, so promi nent in this area, were handicapped by labor shortages in some divisions and lack of materials in others. Production of men’s clothing was held up for want of hand finishers and inadequate supplies of both cotton pocketing and rayon lining materials. There was enough wool for the spinners and weavers but some woolen and worsted mills had trouble getting the labor they needed. In carpet and rug mills the situation Page 60 was much the same—enough yarn but not enough workers. Labor shortages also stood in the way of expanding output in cigar manufac turing and brick production. Brick producers also faced the problem of reconditioning their plants which had been closed down for several years. Material shortages obstructed expanding out put in a number of lines. Many tanners in this area produce light leather products manufac tured from imported goat and kid skins. Im ports of these raw materials were sharply curtailed during the war and the supply is still inadequate. Shoe production, though expand ing, is still below pre-war levels owing to the shortage of both leather and lining fabrics. Hosiery production which had to be curtailed during the war is still considerably below the market demand. Hosiery mills had to go through a severe raw material conversion program but nylons are now being produced in greater volume than rayon hose. The physical output of printers and publishers has increased steadily since last August. This is a reflection of a considerably improved situa tion in the paper industry. Rising imports of pulp since the end of the war have contributed materially to the increasing volume of output by the paper mills, but shortages are still acute in some types of paper and paper products, owing to rapidly increasing demands. Since the turn of the year industrial production has been restricted by disputes between labor and management over wage rates. Difficulties of this nature were to be expected, especially in the durable goods industries where manage ment was confronted with more difficult prob lems of physical readjustment and workers faced greater difficulties of readjustment from their high wartime levels of earnings. The plants and products of these industries required extensive redesigning and the workers in these industries encountered substantial loss of income as a result of reductions in working time and abolition of overtime rates of pay. Work stoppages incident to renegotiation of wage agreements struck the hardest blow to reconversion in the metal-working industries. The strike in the automobile industry had little direct effect in this district because motor vehicle manufacturing is not one of our major indus tries, but the steel strike disrupted operations considerably in this area. The February nose- dive in the manufacturing index was caused primarily by the trouble in steel. The 100-point drop in the steel index naturally had adverse effects upon the steel-consuming industries such as the producers of construction, refrigeration, machinery, and transportation equipment. Total manufacturing output had not recovered com pletely by April, owing to work stoppages not only in steel but also in some branches of the electrical industry and others. Production above pre-war levels In spite of all obstacles, production in April was above pre-war levels in most of the major lines of industry. In this district only leather and textiles lagged behind, as the chart shows. These industries encountered serious setbacks during the war but have shown substantial im provement since the return to peace. The transportation equipment industries which had the greatest wartime expansion have also had the greatest decline since the end of the war. Further recession may take place in these lines as unfinished projects in the ship yards are completed. CHANGE IN OUTPUT OF MAJOR INDUSTRIES APRIL 1946 COMPARED WITH PRE-WAR (1939) THIRD FEDERAL RESERVE DISTRICT LEATHER TEXTILES CHEMICALS BUILDING MATERIALS TOBACCO PAPER METALS FOOD + 45 TRANSPORTATION EQUIPMENT 50 40 30 20 10 PER CENT DECREASE O 10 20 30 40 PER CENT INCREASE 50 The problem of expanding production Expanding production for the civilian market is encountering obstacles of an entirely different nature than those which confronted industry immediately after the war ended. Industrial concerns emerged from the mire of plant and personnel reconversion with comparative ease, but one industry after another bogged down in labor-management controversies. The first major shutdown occurred in the automobile industry—later came steel, electrical industries, coal, and railroads. More are to come, accord ing to current reports. Workers want higher wages to bridge the gap between reduced take-home pay and rising costs of living. Management is reluctant to incur higher costs in the face of continued price ceilings. Regardless of the merits in these dis putes, prolonged strikes only delay and compli cate the processes of readjustment. Production is held up while labor and management stop to bargain and the final solution is usually a com promise, winding up with higher wage rates. Higher wages spell higher costs, and that means higher prices. The effects are transmitted to other industries and to the ultimate consumers. The inflationary tug-of-war between slowly expanding production and our huge spending power is the central problem at this stage of reconversion. It is a heritage of the war which upset former relationships between production and consumption, saving and spending, cost and prices. The flow of urgently needed goods and services is interrupted by the processes of re establishing satisfactory cost-price relationships. This is a difficult process in many industries, particularly in durable goods, and delays in any one industry are quickly felt in other lines— their suppliers and customers. Meanwhile, the lack of balance between the supply of goods and services and spendable money in people’s hands is the crucial issue facing all of us—labor, management, banking, Government, and the public. It calls for restraint and cooperation on the part of all interests. Page 61 Philadelphia’s Experience with G. I. Business Loans During its first year of operation the Phila delphia Agency for Business Loans to Service men, Inc., interviewed nearly 7,500 veterans inquiring about or applying for business loans under the Servicemen’s Readjustment Act of 1944. More than 5,000 of these veterans were seeking advice and information. The Agency approved 276 loans and actually disbursed 167 loans aggregating $810,000. Formed May 1, 1945 by all thirty-six Phila delphia banks, the Agency is the only organi zation of its kind in the United States. Other cities have established veterans’ centers, but these merely refer veterans to local banks when ever loans are desired. The Philadelphia Agency, on the other hand, performs a complete lending service in making guaranteed or insured business loans to veterans. The banks have sub scribed to a $10 million fund; each bank partici pates in the loans and expenses of the Agency on a pro rata basis determined by the ratio of its capital and surplus to the aggregate of the group. Because all lending operations are centered in this one organization, it is possible to analyze Philadelphia’s experience with G.I. business loans during the past year. The Agency limits itself to business loans only. As Table 1 shows, the great majority of veterans’ loans are home loans. Applications for these and for farm loans are referred by the Agency to other lending institutions. The importance of business loans in relation to home and farm loans is indicated by the following data for the three states which lie wholly or partly in the Third Federal Reserve District—Pennsylvania, New Jersey, and Delaware. Table 1 GUARANTEE COMMITMENTS BY TYPE OF LOAN Pennsylvania, New Jersey, and Delaware (From inauguration of lending program to April 27, 1946) Number Percentage Distribution Business loans........................................................ Home loans............................................................. Farm loans.............................................................. 672 13,374 100 4.8% 94.5 .7 Total.......................................... ..................... 14,146 100.0% inal Servicemen’s Readjustment Act of 1944; and (2) the two months (March and April 1946) under the amended Act. Although the Agency was established almost one year after the original Act was passed, the comparatively small demand for loans gave it sufficient time to become acquainted with the Act and to set up lending procedures. After V-J Day the grow ing volume of discharges from the services stim ulated the demand for G.I. business loans. By February 1946 the number of veterans inter viewed daily by the Agency was two and onehalf times as great as it was a few months earlier. During the first ten months, 65 per cent of the Agency’s interviews with veterans involved merely supplying information. For every loan disbursed there were more than thirty requests for information. Establishment of a central agency to provide this service has several advan tages. Perhaps the most important is the greater experience that comes from specialization. Since the cost of the service would far exceed the re turn, there would be no immediate pecuniary incentive for the individual bank to provide as extensive services and counseling facilities as are offered by the Agency. Table 2 ACTIVITIES OF THE PHILADELPHIA AGENCY FOR BUSINESS LOANS TO SERVICEMEN, INC. May 1, 1945 May 1,1945 March and to to Feb. 28.T946 Apr. 1946 Apr. 30,1946 Veterans interviewed Informational requests............. Ineligible loan requests............. Eligible loan requests................ 65.0% 17.0 18.0 77.5% 6.9 15.6 68.5% 14.1 17.4 Total........................................... 100.0% 100.0% 100.0% Eligible loan requests Applications withdrawn........... Incomplete applications........... Applications considered............ 8.5% 67.1 24.4 4.7% 53.3 42.0 7.5% 63.7 28.8 Total.......................................... 100.0% 100.0% 100.0% Applications considered Withdrawn................................... Declined or deferred.................. Approved....................................... 9.7% 16.1 74.2 12.6% 12.6 74.8 10.8% 14.8 74.4 46.6 42.2 45. 27.6 32.6 29.4 100.0% 100.0% 100.0% Loans disbursed...................... Loans in process or awaiting disbursement....................... Total.................................. Source: Veterans Administration. For the purpose of analysis, the Agency’s first year may be divided into two periods: (1) the ten months from May 1, 1945 through February 1946 when it operated under the orig Page 62 More than one-sixth of the veterans inter viewed during the ten-month period requested loans but were ineligible under the terms of the old Act. At that time business loans were per mitted only for the purchase of equipment or of the business itself. Loans were not permitted for the purchase of inventory or to supply work ing capital, to refinance existing loans or mort gages on real estate or equipment, to pay ex penses or overhead in a business operation, or to finance the purchase of a stock interest in a cor poration. The applications classified as ineligible also include those requests which clearly were out of the question, usually because the chances of success were slim or because the veteran had no experience. Such applications are discour aged at an early stage. The bulk of the eligible requests—67 per cent —were in processing stage awaiting filing of formal applications. Some of these may even tually be withdrawn by the applicant because of changed plans, and the remainder will be considered by the Agency’s Loan Committee. Only 16 per cent of the applications considered during the ten months were declined, and 74 per cent were approved. Three-fourths of those ap proved were for the purpose of purchasing equipment—for the most part trucks and auto mobiles for use in various types of businesses and equipment for dentists’ and doctors’ offices. The remaining one-fourth of the approved re quests were for the purchase of established busi nesses. More than half of these were grocery and delicatessen businesses, restaurants, lunch eonettes, and confectionery stores. The amendments to the Servicemen’s Read justment Act of 1944 became effective March 1, 1946. The two main changes brought about by the new provisions were streamlining the lend ing procedure and liberalization of the condi tions under which loans may be made. Steps were taken to eliminate unnecessary and delay ing transactions between the lending agency and the Veterans Administration; notably by simpli fying the method of proving eligibility, and by speeding the process of making guarantees effec tive. The elimination of much of the paper work and involved procedures placed a greater degree of responsibility on the lending institution. The most important revisions, however, were those which liberalized the loan purposes and terms. Business loans are now permitted for the construction of buildings, repairs and im provements, purchase of inventory, and for working capital. The period during which the veteran may apply for guaranteed loans was extended. Maximum maturities were length ened. The requirement that the price of prop erty or costs of construction may not exceed a “reasonable normal value” as determined by appraisal was changed to “reasonable value” in order to allow veterans to operate under exist ing inflationary conditions. Finally, lenders were given the alternative of insuring against losses up to 15 per cent or $2,000 (whichever is less) of each insured loan rather than taking a 50 per cent maximum guarantee on individual loans. By acquiring a large volume of loans, a lender may build up an insurance reserve suffi cient to cover the full loss on any defaulted loan. This may encourage an institution to lend more liberally so long as its average loss ratio is kept within reasonable limits. These changes in the law had a noticeable effect on the activities of the Philadelphia Agency. The number of interviews increased at an accelerated rate, many of them apparently being return visits of veterans who had previ ously been unable to obtain loans under the terms of the old Act. As evidence of increased interest in business loans, requests for informa tion occupied a larger proportion of the Agency’s time. The proportion of ineligible loan requests declined. Before the changes, nearly five out of every ten loan requests were ineligible; in the last two months only three out of every ten were ineligible, reflecting less rigid requirements. The new regulations also had the effect of lowering somewhat the ratio of requests de clined to requests approved. The Agency con tinued, however, to act on the principle that—in the best interests of the lender, the borrower, and the economy in general—loans should be made only if the business venture holds forth reasonable prospects of success. As might be expected, some of the Agency’s loans have “turned sour.” But losses have been nominal, occurring principally on loans to pur chase automotive equipment. In only one case was the unpaid balance of the loan not covered by the guarantee. The essential function of the Agency, how ever, is to serve the best interest of the vet eran. It was not established with the expecta tion of making profits. The principle on which it was founded was that a centralized organiza tion could perform more effectively than could the participating banks acting individually. The merits of this theory have been demonstrated by Philadelphia’s experience. Page 63 BUSINESS STATISTICS Production Employment and Income Philadelphia Federal Reserve District Indexes: 1923-5=100 Adjusted for seasonal variation Not adjusted Per cent change Apr. 1946 1946 from from Apr. Mar. Apr. 1946 1946 1945 4 Mo. Year mos. 1945 ago ago Apr. Mar. Apr. 1946 1946 1945 INDUSTRIALPRODUCTION 103p 102 manufacturing............... 105p 102 112p 110 99p 96 Metal products....................... 104 90 Textile products...................... 73p 68 Transportation equipment. . I98p 216 Food products......................... 119p 122 Tobacco and products.......... 128 123 Building materials.................. 44p 48 Chemicals and products.... 133p 135 Leather and products........... 86p 84 Paper and printing................ 115 117r Individual lines Pig iron..................................... 76 r 78 Steel............................................ 100 92 r Iron castings............................ 81 78 Steel castings........................... 110 73 Electrical apparatus.............. 121 91r Motor vehicles......................... 35 34 r Auto, parts and bodies.......... 96 76 Locomotives and cars............ 57 36 Silk manufactures................... Woolen and worsteds............ Cotton products..................... Carpets and rugs.................... Hosiery...................................... Underwear................................ Cement...................................... Brick.......................................... Lumber and products........... in Pennsylvania 136 139r 210 92 179 65 481 121r 99 36 169 r 82 94 +1 + 3 — + 2 + 3 _ + +16 + 7 + - 8 — - 3 — + 4 + - 7 + - 2 + 2 + - 2 + 86 130 70 216 302 51 119 90 + 4 + 8 + 4 +52 +33 + 5 +25 +57 — 17 + 5 + 6 + 1 + 8 + 4 +10 -13 - 6 + 2 — 4* 87 83 83 79p 74 64 48p 47 40 74p 69 54 65 75 72 130 138 143 65p 74 27 55r 50 52 29 28 33 Slaughtering, meat packing. 114 Sugar refining.......................... 34 Canning and preserving. .. . 171p Cigars......................................... 129 Paper and wood pulp........... 82 Printing and publishing........ 122 Shoes.......................................... nip Leather, goat and kid........... 62p Explosives................................. 69 Paints and varnishes............. 88 Petroleum products............... 178 Coke, by-product................... 147p COAL MINING........................ 67 Anthracite................................ 75 Bituminous............................... 4 CRUDE OIL.............................. 296 ELECTRIC POWER.............. 423 Sales, total............................... 412 Sales to industries.................. 290 BUILDING CONTRACTS fcTOTAL AWARDSf................. 138 Residential!............................. 162 Nonresidentialf....................... 128 Public works and utilities!.. 85 118 61 170 124 91 123 r 106 62 73 91 181r 143 101 105 166 - 3 98 83 96 99 65r 216 86 208 155 -45 +1 + 3 -11 0 + 5 24 25 47 7 42 13 59 1 29 25 21 5 23 0 - 5 - 3 - 2 + 2 -18 - 5 Employment _ 26 — 28 _ 49 + 5 48 + 5 — 57 + 1 + 27 + 25 — 19 — 4 + 22 — 9 — 23 + 16 49 — 60 — 30 — 20 — 37 _ 65 + 6 + 24 + 18 + 37 + 16 + 3 +142 + 4 15 6* _ + 12 68 — + 3 + 31 2 + 27 + 12 6 102p 103 103p 103 — 21 — 41 + 4 63 — 57 — 35 — 30 — 52 _ 61 0 + 14 + 13 + 22 + 9 + 1 +143 + 4 19 _ 4* + 19 — 39 + 1 + 30 + 8 + 24 — 2 — 10 — 68 0 — 5 — 24 + 3 + 7 14 — 6 — 5 — 6 — 17 134 137 103 70p 208p 113p 116 44p 135p 85p 119 93 70 227 117 114 42 136 87 120r 172 63 498 115 90 35 171 r 81 96 89 105 84 113 105 44 104 61 87 99 . 82 81 85r 36r 83 39 97 136 73 221 263 63 130 97 86 86 81 72p 72 59 50p 50 42 53 71p 69 65 75 75 140 142 135 64p 57 26 54 54 r 52 26 32 27 120 124 127 no 111 99 44 93 136 150p 151 140 117 115 89 84 93 93 125 125r 98 lllp 112 99 60p 61 63 r 70 73 218 93 93 91 178 180r 208 161 153p 149 — 68 + 2 15 — 205 67 82 83 — 75 79 82 — 9 106r 95 -96 — 96 4 322 - 1 — 8 298 305 403 431 + 5 — 2 415 0 — 3 424 413 424 305 350 - 5 — 17 293 133 107 81 +29 + 69 +109 ** ** 151 4 +74 93 75 - 3 + 71 + 83 131 132 74 — 44 78 73 327 +16 * Unadjusted for seasonal variation. p—Preliminary, t 3-month moving daily average centered at 3rd month. r—Revised. ** Increase of 1000% or more from the low level of a year ago. 82 82 79 108r 82 86 r 304 411 332 422 409 290 436 353 93 78 71 132 67 3 77 301 Factory employment Mar. 1946 Apr. 1945 Allentown........... Altoona............... Harrisburg.......... Johnstown.......... Lancaster............ Philadelphia.... Reading............... + 3 0 + 4 + 5 0 + 8 + 3 - 1 -19 - 3 -10 +10 - 7 -18 - 3 -18 Wilkes-Barre___ Williamsport... . Wilmington........ York..................... + 1 + 2 + 1 +14 -27 -12 -33 - 4 Factory payrolls Building permits value Retail sales Page 64 123 156 13 61 90 146 110 137 118 114 105 106 +1 + 5 -84 + 5 +11 + 2 + 1 + 4 0 + 4 + 2 + 5 - 4 -11 -80 +36 +21 +13 +14 +14 +15 + 13 + 6 + 8 298 404 266 134 315 271 179 208 182 223 222 245 + 4 - 6 + 8 -16 -94 +28 + 3 +18 +19 +30 0 + 8 + 3 +22 + 4 +30 0 +19 + 6 +27 + 2 +21 + 8 +33 Manufacturing Employment* Payrolls* Per cent Per cent Apr. change from Apr. change from 1946 1946 index Mar. Apr. index Mar. Apr. 1946 1945 1946 1945 Indexes: 1923-5 =100 TOTAL..................................... Iron, steel and products... . Nonferrous metal products. Transportation equipment. Textiles and clothing........... Textiles................................. Clothing................................ Food products....................... Stone, clay and glass............ Lumber products.................. Chemicals and products.. . . Leather and products.......... Paper and printing............... Printing................................ Others: Cigars and tobacco............. Rubber tires, goods............ Musical instruments.......... 100 97 186 98 81 77 99 120 97 51 112 85 121 118 + 5 +13 + 3 + 5 0 + 1 0 - 1 + 2 + 3 - 1 + 1 + 1 + 1 -11 -19 -15 -35 + 8 +10 + 1 - 3 +21 + 2 - 3 +20 +22 +27 165 196 414 169 144 136 180 195 162 85 203 147 206 194 + 8 +14 + 7 +14 0 0 0 - 1 + 5 + 4 0 0 0 0 -16 -26 -12 -38 +20 +23 +n + i +26 0 - 4 +23 +35 +42 53 137 116 + 9 0 + 5 +n - 6 +16 82 322 198 + 7 + 1 + 7 +14 + 2 +44 * Figures from 2771 plants. Deljits Mar. 1946 Apr. 1945 Mar. 1946 Apr. 1945 Mar. 1946 Apr. 1945 + + + + 6 6 5 5 0 +12 + 3 - 2 -30 -10 -15 - 2 - 7 -27 - 4 -14 +1 + 6 + 4 +20 -31 -10 -40 -14 -81 -60 +11 -76 -88 +77 -66 -71 -56 -56 -91 -28 +12 +313 + 39 ** + 72 + 29 +320 + 92 +108 +238 +134 +352 ** +615 +1 - 7 +1 +n - 6 + 5 0 + 3 + 11 + 2 (-54 -53 -50 -50 -46 -53 -55 -69 -70 (-63 0 - 5 +61 +51 + 3 + 5 -16 + 3 + 1 + 4 - 6 -23 +35 - 5 + 2 +17 - 2 1-15 -31 -16 -17 -10 -22 - 6 -21 -37 -16 - 2 -21 * Area not restricted to the corporate limits of cities given here. ** Increase of 1000% or more from the low level of a year ago. Payrolls Per cent Per cent Apr. change from Apr. change from 1946 1946 index Mar. Apr. index Mar. Apr1946 1945 1946 1945 GENERAL INDEX............. Manufacturing...................... Bituminous coal mining.. . . Building and construction.. Quar. and nonmet. mining.. Crude petroleum prod......... Public utilities....................... Retail trade............................ Wholesale trade..................... Hotels...................................... Laundries............................... Dyeing and cleaning............ Factory workers Averages April 1946 and per cent change from year ago Apr. 1945 Mar. 1946 « Indexes: 1932=100 Hours and Wages Local Business Conditions* Percentage change— April 1946 from month and year ago Industry, Trade and Service bio TOTAL............................ Iron, steel 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 products.. Paper and printing.. . . Printing........................ Others: Cigars and tobacco... Rubber tires, goods. . Musical instruments. Weekly working time* Hourly earnings* Aver age Ch'ge Aver Ch’ge hours age 40.2 39.3 41.0 41.5 39.5 40.4 37.2 42.7 39.8 42.0 41.1 40.7 43.2 41.4 37.5 44.4 44.7 * Figures from 2628 plants. -11 -16 - 9 -10 - 1 - 1 0 - 3 - 6 - 3 -12 - 5 - 3 0 -12 - 1 +12 $1,106 1.195 1.089 1.258 .905 .922 .855 .891 1.041 .838 1.194 .837 1.062 1.242 Weekly earnings! Aver Ch’ge age +1 $44.33 - 9 + 4 46.97 -12 + 7 44.62 - 3 - 3 52.10 -13 +12 35.74 +H +12 37.26 +12 + 9 32.20 + 9 + 8 38.40 + 4 +10 41.31 + 4 + 4 34.88 + 1 +11 48.95 - 3 + 6 34.30 +1 +13 46.37 +n +13 51.46 +12 .753 +14 1.178 +10 .999 +10 28.21 52.32 44.66 t Figures from 2771 plants. 0 + 9 +24 Distribution and Prices Per cent change Wholesale trade Unadjusted for seasonal variation Adjusted for seasonal variation 1946 Apr. 1946 from from 4 Month Year mos. 1945 ago ago Sales Total of all lines.... Boots and shoes... Drugs....................... Dry goods............ Electrical supplies. Groceries................. Hardware................ Jewelry..................... Paper........................ + + + + + + + + + 5 6 8 7 2 4 5 9 8 +28 +68 +13 +44 +37 +29 +61 +90 +23 Inventories Total of all lines___ Dry goods............... Electrical supplies. Groceries................. Hardware................ Paper........................ + 5 +13 + 3 + 1 + 5 - 5 +33 +78 +29 +18 + 6 + 9 Indexes: 1935-1939=100 +23 +21 +76 + 8 Apr. 1946 from Apr. Mar. Apr. 1946 1946 1945 1946 from Month Year ago ago +21 +14 +27 Not adjusted Per cent change RETAIL TRADE Sales Department stores—District........................ Philadelphia............... Women’s apparel.............................................. Men’s apparel.................................................... Shoe...................................................................... 223 207 226 263 203 244 223 286 r 278 240 161r 150r 150 150 112 - 8 - 7 -21 - 5 -16 +10* +39 +38 +51 +75 +32 +65* 170 170 210 53 158 156 192 53 148 146 r 181 58 + 8 + 9 + 9 0 + 5* +15 +17 +16 — 9 +15* 104 126 101 43 117 85 113 107 142 142 129 95 166 138 185 107 123 125 151 141 96 177 401 220 123 158 121 -27 - 2 + 7 -74 -15 -54 + 5 -13 +13 -31 -10 + 6 -76 -71 -61 - 8 -32 +17 255 219 140 +16 +82 188 0* —98* +10 Inventories Source: U. S. Department of Commerce. Apr. 1946 Mar. Apr. 1946 1945 mos. 1945 + + + + + 22 20 31 28 37 228 211 262 252 248 219r 199 284r 224 228 151 r 141 r 158 129 125 173 172 209 59 158 158 211 59 151 147 r 181 64 15 16 6 5 60 39 6 2 3 98 125 101 34 61 69 95 100 130 133 124 95 171 61 174 93 117 116 144 140 96 141 208 178 103 ]47 111 +67 255 228 140 0* + 71* 3 -25* +793* 1 +20 + 10 221 3 49 204 3 1 184 Per cent change from Prices 1946 Month Year ago ago Basic commodities (Aug.1939 =100)___ 190 Wholesale (1926-100)................. 110 Farm........................... 135 Food............................ 111 Other.......................... 103 Living costs (1935-1939=100) United States.............. 131 Philadelphia............... 130 Food........................... 140 Clothing..................... 152 Fuels........................... 115 Housefurnishings. . . 152 Other.......................... 122 Aug. 1939 0 +4 + 90 +i +i +i +i +4 +5 +5 +4 + 47 +122 + 65 + 29 +i 0 0 0 0 +1 0 +3 +3 +4 +5 +5 +5 +1 + + + + + + + 33 32 50 53 19 51 21 Source: U. S. Bureau of Labor Statistics. FREIGHT-CAR LOADINGS Total...................................................................... Merchandise and miscellaneous................... Merchandise—l.c.1............................................ Coal...................................................................... Ore........................................................................ Coke..................................................................... Forest products................................................. Grain and products.......................................... Livestock............................................................. MISCELLANEOUS Life insurance sales............................................ Business liquidations Check payments.................................................. * Computed from unadjusted data. 226 206 p—Preliminary. + - r—Revised BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Changes in— Reporting member banks (Millions $) May 22, 1946 Four weeks One year Assets Commercial loans.................. $ 275 Loans to brokers, etc............ 42 Other loans to carry secur... 62 Loans on real estate.............. 41 1 154 + $6 - 2 - 8 + 3 +$ 73 3 + 47 + 8 + 32 Total loans............................. $ 575 - $1 +$157 Government securities.......... $1840 Obligations fully guar’teed.. Other securities....................... 192 —$56 1 +$104 - 54 + 17 Total investments............... $2032 — $57 +$ 67 Total loans & investments. $2607 Reserve with F. R. Bank. . . 417 33 Balances with other banks.. 85 Other assets—net................... 49 Liabilities Demand deposits, adjusted.. $1775 Time deposits.......................... 241 U. S. Government deposits. . 525 Interbank deposits................. 361 5 Borrowings............................... Other liabilities....................... 24 Capital account....................... 260 - —$58 - 3 4 1 +$224 - 29 + 3 + 6 + 1 +$42 + i - 79 - 13 - 8 - 1 + 2 -$159 + 34 + 293 + 17 3 + « + 15 + + Changes Changes in weeks ended— in four May 1 May 8 May 15 May 22 weeks Third Federal Reserve District (Millions of dollars) Sources of funds: Reserve Bank credit extended in district................................ Commercial transfers (chiefly interdistrict)............................ - 6 +13 -11 -25 +37 + 2 +14 +17 -34 -24 +15 - 1 -41 +82 —44 - 4 +14 - 3 -10 - 3 - 4 + 5 +10 - 1 + 4 - 7 + 1 -11 + 6 - 8 - 1 - 4 +14 - 3 -10 - 3 Uses of funds: Member bank reserve deposits................................................... “Other deposits” at Reserve Bank............................................ Other Federal Reserve accounts................................................. Total................................................................................................. reserves (Daily averages; dollar figures in millions) Re Held quired Ex cess Ratio of excess to re quired — Phila banks 1945: May .1-15 .. 1946: Apr. 1-15.. Apr. 16-30. . May 1-15.. Country banks 1945: May 1-15 .. 1946: Apr. 1-15.. Apr. 16-30. . May 1-15.. $431 406 408 412 $421 398 398 400 $10 8 10 12 2% 2 2 3 $335 369 364 372 $271 306 309 313 $64 63 55 59 24% 20 18 19 Federal Reserve Bank of Phila. (Dollar figures in millions) Changes in— May 22, 1946 Four weeks One year Disc, and advances.. Industrial loans .... U. S. securities.......... $ —$13 -$ 4 2 + 236 Total......................... Fed. Res. notes......... Member bk. deposits U.S. general account Foreign deposits.. . . Other deposits.......... Gold ctf. reserves.. . Reserve ratio............. $1603 1607 767 41 52 3 872 35.3% 8 1 1594 - 7 — $20 + 4 - 8 + 21 - 5 - 1 + 33 +1.2% +$230 + 109 4 + 13 - 49 1 - 147 - 7.1% Page 65 i GRAbFOAb McKEWt 1cAMew»x L..., y \sull7vam ; '”ICUNTON~"J HW CENTRE '__ P E ,'"W'"H,r'U*lL____ HUNTINGDON Johnafown / > “m kteato&fr Lebanon /p>n^infi / -s / >s HT“ orrisWMa Iwa'OScMTta' ‘__ rt **'A . . V / ^ / ,frRAHWJfc. iruLTw > > Z1! /'"YORK ' \ ( > .Awtoomu '/*v'^mcstcr1 .Laosfls^r V\ A.. V1**" 1 X.IB VJUN1ATA »b!EB\ A VV i > / P h i Ifl 1 p sflEWCAST a IHKIftrtan OCEAN dsanodsr? A, •■ \ N'-v . , 'V' AKt"1 tf\\JZ‘’,‘‘«^^frqotic Ci THE THIRD FEDERAL RESERVE DISTRICT Page 66 ''
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