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THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
JUNE 2., 1930
By RICHARD L. AUSTIN, Chairman and Federal Reserve A gent
FEDERAL RESERVE BANK of PHILADELPHIA
Business and Financial Conditions in the United States
Industrial activity increased slightly
in April from the rate prevailing in
March. Factory employment declined
by the usual seasonal amount, while
factory payrolls showed a smaller re
duction than usual. Wholesale prices
continued to decline in April and the
first half o f May. There was a further
easing o f open market money rates.
Production in basic
industries in April was slightly larger
than in March and the Board’s in
dex, which makes allowance for the
usual seasonal changes, shows an in
crease o f about 2 per cent, offsetting
a large part o f the decrease in March.
Output o f automobiles showed the
usual seasonal expansion. Steel out
put declined seasonally in April and
the early part o f May. The output
o f silk textiles was considerably re
duced, and woolen mills curtailed
operations, though less than season
ally. C otton m ills w ere m ore active
in April and there was some increase
in stocks. In the first half o f May,
however, a program o f curtailment
was instituted in the industry.
In comparison with the first four
months o f 1929, a year o f exception
Production.
ally active business, production was
smaller in almost all major branches
o f industry, with the exception o f
tobacco.
In comparison with 1928,
however, output was larger in the
automobile, petroleum, and silk in
dustries, slightly smaller in steel and
coal, and considerably smaller in cot
ton and wool textiles, flour, meat pack
ing, automobile tires, and lumber.
Building contracts awarded during
April, according to the F. W . Dodge
Corporation, were 6 per cent larger
than in March, reflecting further ex
pansion in awards for .public works
and utilities, and some increase in
residential construction, largely sea
sonal in character. In the first two
weeks in May there was a further
increase in building activity. In com
parison with 1929, awards in the first
four months o f the year were 17 per
cent smaller, reflecting chiefly the con
tinued small volume o f residential
building, which more than offset in
crease in public works and in utility
construction.
cent in April, which represents the
usual development for that month,
while the reduction in factory payrolls
from March to April was smaller
than usual.
Factory employment,
which had been decreasing since last
September, declined by about one per
M onthly averages of weekly figures for report
ing member banks in leading cities. Latest
figures are averages of first two weeks in M ay.
Em ploym ent.
Department store sales
increased during the month by an
amount estimated to be slightly larger
than is accounted for by the late
Easter holiday.
The value o f foreign trade de
creased further in April, and for the
first four months o f the year exports
were about 20 per cent smaller than a
Distribution.
BILLIONS OF DOLLARS
10
9
8
7
6
5
PER CENT
and minerals combined, adjusted for seasonal
variations (1923-1925 average=100). Latest
figure April, 106.
Index numbers of factory employm ent and
payrolls, without adjustm ent for seasonal
variations.
(1923-1925 average = 100). Latest
figures April, employm ent 99.1, payrolls 96.7.
BILLIONS OF DOLLARS
M onthly rates in the open
York: commercial paper rate
paper. Acceptance rate on
acceptances. Latest figures
first 20 days in M ay.
PEfl CENT
market in New
on 4 to 6 m onth
90-day bankers’
are averages of
Page One
year ago, when trade was exception
ally active. In part this decline re
flected the lower level o f wholesale
prices.
Copper prices were reduced further
early in May, but recovered somewhat
following large purchases for domes
tic and foreign consumption.
Wholesale prices.
An increase in
wholesale prices in the first week in
April w a s. followed by a substantial
decline which continued into May and
brought the level o f prices to the low
est point in a number o f years. Prices
o f important raw materials, such as
wheat, cotton, and silk declined during
most o f the period, but steadied some
what around the middle o f May, while
prices o f silver, hides, and coffee were
comparatively stable.
There were
fairly continuous price declines in
steel, sugar, raw wool, and the textiles.
Bank credit. Loans and investments
o f member banks increased by about
$160,000,000 in the latter half of
April, but declined $140,000,000 in the
first two weeks in May, both move
ments reflecting chiefly fluctuations in
loans on securities. Investments in
creased further, while "all other” loans
continued to decline, and on May 14
at $8,560,000,000 were the smallest
in more than two years.
The volume o f reserve bank credit
declined further by $125,000,000 be
tween the weeks ending April 19 and
May 17, largely as a result o f the
addition o f about $65,000,000 to the
stock o f monetary gold, and o f a
further substantial reduction in the
volume o f money in circulation, which
reflected chiefly smaller volume o f
payrolls and declines in retail prices.
The system’s holdings o f bills de
clined, while United States securities
and discounts for member banks
showed little change.
Money rates on all classes o f paper
declined further in May. The dis
count rate o f the Federal Reserve
Bank o f New Y ork was reduced from
3^2 to 3 per cent on May 2, and that
at the Federal Reserve Bank o f Boston
from 4 to 3 y2 per cent on May 8.
Business and Financial Conditions in the
Philadelphia Federal Reserve District
Trade and industry o f this district
as a whole showed a slightly higher
level o f activity in April than in
March, though continuing below the
exceptionally large volumes o f a year
ago. A t present most industries, al
lowing for the usual seasonal let-down,
are holding their ground.
Credit conditions remain easy, with
an ample supply o f funds for busi
ness purposes, and little change dur
ing the past month in interest rates
charged commercial customers. Banks
report some increase recently in the
item which includes commercial loans,
though such loans continue in smaller
volume than in the middle o f April.
The reserve ratio o f the Federal
Reserve Bank is much higher than a
year ago and the borrowings o f mem
ber banks, despite a slight increase in
the past month, are in relatively small
volume.
Conditions in manu
facturing industries on the whole
showed slight improvement in April
but since then the available evidence
points to recessions which in most
cases are o f seasonal character. The
demand for manufactured products in
the first fortnight o f May was less
active than a month ago and continued
well below last year.
Prices o f finished commodities in this
district, as in the country, have de
clined further. Raw materials, on the
other hand, showed some strength in
April after a prolonged period o f de
cline. This was probably due to an
advance in certain farm products.
Non-agricultural commodities in the
country continued the downward
trend.
Manufacturing.
Page Two
The volume o f orders on the books
o f local manufacturing concerns as a
rule has decreased since the middle
o f last month. Stocks o f manufacLatest figure
compared with
April, 1930
Philadelphia Federal Reserve District
Previous
month
Year
. ago
Retail trade— estimated net sales (134 stores) (daily average)
Department stores (6 3 )................................
“
“
Apparel stores (3 7 )........................................
“
“
Shoe stores (1 8 )............................ .................
“
“
Credit stores (1 6 )..........................................
“
“
$944,100
$774,800
$135,500
$17,000
$16,800
+ 1 9 .3 %
+ 16.7 “
+ 34.4 “
+ 35.2 “
+ 2 6 .0 “
+
9 .4 %
+
6 .7 “
+ 2 5 .8 “
+ 28.1 “
+
6 .2 “
W holesale trade— net sales (104 firm s)........ (daily average)
Boots and shoes ( 5 ) ......................................
*
“
Drugs (1 0).......................................................
“
“
Dry goods (1 3 )...............................................
“
“
Electrical supplies ( 5 ) ..................................
“
“
Groceries (3 2 ).................................................
“
“
Hardware (2 2 ).........................................
“
“
Jewelry (1 0 )...................................................
“
“
Paper (7 ).........................................................
“
“
$278,745
$4,700
$45,461
$17,141
$18,654
$102,169
$64,955
$8,820
$16,845
- 2 .1
- 0 .0
- 4 .2
- 6 .2
+ 6 .2
+ 0 .1
- 1.7
-1 2 .4
- 9 .7
“
*
“
“
“
“
“
“
“
+
-
6 .9 “
9 .4 “
0 .1 “
1 5 .8 “
7 .1 “
1.7 “
12.1 “
2 4.9 “
13.4 “
- 0 .2
- 1 .0
- 3 .0
- 9 .5
-1 7 .7
+ 18.4
- 3 .1
- 1 .5
-1 8 .0
+ 12.0
+ 5 .2
“
“
“
“
“
“
“
“
“
“
“
-
0 .1 “
5 .5 “
tons
tons
tons
tons
tons
336,308
$9,098,885
52,891
55,375
221,371
560,315
10,066
216
275
196,000
413,000
-
1 0 .3 “
1 3 .0 “
10.3 “
6 .0 “
2 0.9 “
2 .9 “
bbls.
bbls.
KW H
52,000
102,233
18,369,200
+ 12.6 “
+ 16.6 “
- 1 .8 “
+
+
$2,519,915,000
$1,653,500,000
$28,300,000
$22,208,000
$8,337,500
114
$2,314,939
- 8 .5
+ 0 .1
-2 2 .9
- 7 .2
-3 2 .4
-1 3 .6
+ 12.7
“
“
“
“
“
“
“
- 2 0 .5 “
1 .0 “
- 7 4.3 “
+ 101.0 “
+ 4 5 9 .6 “
+ 26.7 “
+ 1 4 .9 “
$14,481,432
$42,034,200
4,214
$10,460,079
+ 2 8.8
+ 4 7 .4
- 6 .1
-3 9 .1
“
“
“
“
+
5 .0
- 3 7.3
- 20.3
- 57.1
Productive activity—
Employment— 850 plants in Penna........................................
W age payments in above plants..............................................
Shoe production *— 81 factories................ (daily average)
Hosiery production *— 138 m ills...............
“
“
W ool consumption *— 83 mills...................
“
“
Active cotton spindle hours (Penna.) . . . .
“
“
Pig iron production.......................................
“
“
Iron casting production— 37 foundries. . .
“
“
Steel casting production— 11 foundries.. .
“
“
Anthracite.......................................................
“
“
“
“
Bituminous coal (P enna.)...........................
Petroleum receipts at Port of Philadelphia
— domestic and foreign............................
“
“
C em ent............................................................
“
“
Electric power output— 11 system s...........
prs.
doz. prs.
lbs.
Financial and credit—
Debits (cneck paym ents) 18 cities.........................................
Loans & investments— middle of M ay— 99 member banks
Bills discounted held by F. R. B. of Phila. (daily average)
Bankers’ acceptances outstanding— end of m onth .............
Commercial paper sales— 4 dealers........................................
Commercial failures— num ber.................................................
Commercial failures— liabilities...............................................
Building and real estate—
Building permits— 17 cities......................................................
Building contracts awarded.....................................................
Number of real estate deeds recorded (Philadelphia county)
Value of mortgages recorded (Philadelphia co u n ty )...........
Sheriff sale— number of writs issued for M ay— (Philadelphia co u n ty )............................................................................
Miscellaneous—
Freight car loadings (Allegheny d istrict)..............................
Tonnage of vessels (Port of Philadelphia)............................
Sales of life insurance (Penna., N. J., and D e l.)..................
Automobile sales registrations of new passenger cars.........
* Bureau of Census preliminary figures.
1,330
tons
810,036
4,4 7 6,60 5
$120,581,000
20,345
-
2 .6 “
+ 3 .7
- 1 .5
- 8 .2
+ 1 2 .3
“
“
“
“
+
8 .5 “
2 .1 “
5 .3 “
"
“
“
“
15.5 “
- 10.1
+ 11.3
+
8 .5
- 2 7.1
“
“
“
“
tured goods held by industrial plants
at large do not appear excessive, al
though there has been some accumu
lation at certain individual plants. In
comparison with a year ago, all groups
have reported smaller supplies o f fin
ished goods.
National inventories o f manufac
tures at the end o f the first quarter of
this year were slightly larger than at
the same time last year according to
the indexes o f the Department o f Com
merce. This increase was due prin
cipally to a very large gain in nonferrous metals. Inventories o f raw mate
rials reached an unusually large peak
at the end o f last year, but since then
they have been declining gradually;
foodstuffs and textiles were chiefly
responsible for this increase.
Factory employment and wage pay
ments in this section have declined be
tween March and April by about the
usual seasonal amounts. Last year at
the same time, when manufacturing
was at an exceptionally high level,
employment and payrolls were natu
rally larger, but comparisons o f em
ployment and wages in April this
year with other recent years are
favorable.
Fabrication o f iron and steel prod
ucts shows little change, barring sea
sonal influences. In April several in
dustries had a higher rate o f opera
tion than in March and in April, 1929.
While production since the first of
the year in general has been running
noticeably below the same period of
last year, it compares more than fa
vorably with other recent years. Manu
facturers o f such transportation equip
ment as commercial trucks, ships and
boats, locomotives and cars operated at
a higher rate in April than in March.
Metal prices generally have declined
further. Foundry pig iron has fallen
off 50 cents a ton at eastern Pennsyl
vania furnaces.
The textile situation continues un
satisfactory.
Productive activity in
the cotton, and woolen and worsted
industries has declined more than sea
sonally. The output o f silk manufac
tures, which reached an exceptionally
high level in March, was curtailed
rather sharply in April. Carpet and rug
mills reported improvement in April,
but in the first two weeks o f May op
erations were cut down. Production
o f hosiery has declined almost steadily
since the high point in November.
Stocks o f finished hosiery have been
accumulating. Price trends o f textile
fibres and finished products have con-
Daily average
Electric power
Philadelphia Federal
Reserve District
11 systems
Change
from
Apr.,
1929
Change
from
Mar.,
1930
Rated generator ca p a city .. . . + 4 .5 %
-
Generated outp ut.....................
H ydro-electric. .....................
Steam.......................................
Purchased...............................
Sales of electricity.....................
Lighting..................................
M unicipal...........................
Residential and commercia l...................................
P ow er......................................
M unicipal...........................
Street cars and railroads.
Industries...........................
+ 5 .3 “
+ 7 .6 “
+ 11.5 “
- 9 .0 “
+ 8 .7 “
+ 9.1 “
+ 10.6 “
- 1 .8
- 1.5
+ 6 .4
-1 6 .3
- 0 .0
- 2 .8
- 9 .0
+ 8 .9 “
+ 6 .0 “
+ 4 2 .4 “
+ 5 .8 “
+ 5 .3 * “
+
+
+
2 .0 “
0 .7 “
1.7 “
6 .1 “
2 .1 * “
A ll other sales........................ + 2 2 .7 “
-
0 .2 “
0 .0 %
“
“
“
“
“
“
“
*Working days average.
tinued downward during the past
month.
Activity in industries making vari
ous food products remains well sus
tained at a level generally below that
o f last year. Seasonal improvements
are evidenced in such branches as
sugar refining, output o f creamery
products and to some extent in animal
slaughterings, particularly lamb and
veal. Canning and preserving again
declined in April as was to be ex
pected. Production o f cigars increased
appreciably in April, while that of
other tobacco products declined.
Tanneries and shoe factories, while
curtailing their operations seasonally,
continue working at higher rates than
those prevailing in several years past.
The output o f shoes declined in April
but was substantially above that in
the same month in the past five years.
The hide market is quiet, as is usual
at this time, although prices have
shown a little strength lately. The
market for goatskins is only fair, and
prices show little variation.
Business in chemical and allied
products generally shows seasonal ex
pansion, although the output o f cer
tain industrial chemicals and drugs
showed a slight decline in April. The
output o f paints and varnishes, gaso
line, lubricants, and asphalt increased
appreciably.
The market for rubber tires and
tubes has broadened seasonally, while
the demand for mechanical rubber
goods shows little change. Conditions
in the paper industry remain rather
steady in spite o f a slight decline in
the rate o f activity during April.
Production o f cement increased ma
terially in the month and was about
two per cent larger than in April, 1929.
Stocks o f cement are somewhat heavy,
but they are being worked off grad
ually. Activity o f lumber and plan
ing mills, on the other hand, con
tinues sluggish; this is also true o f
brick, plumbing supplies, and pottery.
Quotations for building materials gen
erally have been lower in the past
month.
Construc
tion activity has expanded further
since the middle o f last month, reflect
ing largely a higher rate o f operation
in public works and utilities and to
some extent commercial and residential
buildings. This has been especially
evidenced by a further increase in
employment and wage payments in
building trades.
Nevertheless, the
value o f contracts awarded in the
first half o f May in this section, com
puted on a daily basis, was materially
smaller than the average for April or
that for May, 1929.
Building contracts let in April
showed a gain o f about 47 per cent
over the preceding month but were 37
per cent below those o f a year earlier.
Comparative figures showing the value
o f contracts awarded in this district
and in some o f the leading cities dur
ing the first four months o f this year
fo llo w :
Building and real estate.
Building contracts
awarded
(000’s omitted in
dollar figures)
First
months
1930
Per cent
change from
1929
1925-28
average
Philadelphia............... $ 75,397
R eading.......................
1,000
S cranton......................
1,386
Cam den.......................
1,973
T ren ton.......................
1,017
W ilm ington .. . . . . . . .
2,994
+ 7 .7
-8 0 .7
+ 17.3
-7 1 .0
-4 1 .2
-4 2 .0
+ 0 .9
-4 6 .1
+ 8 .8
-3 4 .4
-5 9 .2
+ 7 7 .2
T otal for Philadelphia
F e d e ra l R e s e rv e
District, including
all cities...................
-1 5 .5
-
136,203
9 .6
Source: F. W . Dodge Corporation.
The real estate market continues un
satisfactory, although the renting de
mand for dwellings shows a slight bet
terment.
In industrial sections o f
Philadelphia, there seems to be a more
active demand for six-room houses
with a bath renting at $25 to $30 a
month, and in some o f the residential
sections the demand for six or sevenroom dwellings renting at $40 to $60
a month appears to show improvement.
Analysis o f the various estimates indi
cates that there is more than an ample
supply o f houses and apartment space
for rent. Some further reductions in
rents for houses and apartments have
Page Three
occurred in the past three months and
they are appreciably lower than a year
ago.
The sale o f houses as a rule con
tinues smaller than last year. P ro
spective home buyers are finding it
difficult to finance their purchases,
owing partly to an increased require
ment for initial cash payments and
partly to a selective placement o f
mortgages.
The volume o f financing for new
commercial construction and residen
tial building remains noticeably smaller
than a year ago. Most o f the present
loans on homes are for owners. There
has been no change in interest rates
on mortgages during the past three
months.
The number o f deeds and the value
o f mortgages recorded in Philadel
phia declined between March and
April and was smaller than in April,
1929. In the first four months o f this
year, deeds declined about 12 per cent
from those in the same period last
year and were nearly 13 per cent fewer
than in 1928.
Mortgages also de
clined about 34 per cent in the first
four months and were nearly 50 per
cent less than in the same period in
1928.
The number o f court writs issued
for sheriff sale o f properties in May
amounted to 1,330, a decline o f nearly
3 per cent from March but an increase
o f almost 16 per cent over those in
April, 1929. The significance o f these
writs is enhanced by the fact that each
writ covers anywhere from one to
twenty or more properties.
Coal. The market for anthracite is
seasonally quiet and sales have de
clined further since the middle o f last
month. The usual May 1 reduction in
prices occurred. A fter a sharp de
cline in the early part o f this year,
reaching in March the lowest level in
several years, colliery output increased
12 per cent in April. In the first fort
night o f May, production also con
tinued upward. Stocks in the hands
o f dealers in this district on April 1
were considerably smaller than a year
ago. Stocks in New England, where
large quantities o f Pennsylvania an
thracite are consumed, also were
smaller.
In sympathy with the moderate rise
in industrial activity, production of
bituminous coal increased somewhat
in A p ril; in comparison with a year
ago, w-hen business was good, the vol
ume was naturally smaller, but it ex
Page Four
ceeded that in the same period o f
1928. In the first fortnight o f May,
colliery activity increased. A further
reduction in prices is reported.
Agriculture. Aided by high tempera
tures and ample sunshine, farm work
has progressed to a point where it is
nearly two weeks ahead o f last year.
A prolonged period o f drought, which
for a time threatened to lower crop
conditions, has been broken and crops
are growing well. The condition o f
winter wheat in Pennsylvania on May 1
indicates a yield about equal to that o f
last year.
Peaches and cherries suffered ser
ious frost damage in southern Penn
sylvania. Reports from southern New
Jersey indicate some damage done to
peaches, partly by killing frosts, and
partly by dry weather last fall, which
weakened the fruit buds to such an
extent that they were unable to with
stand severe cold.
Distribution. The wholesale and jo b
bing trade in this district during April
decreased seasonally, all lines having
smaller sales with the exception o f
electrical supplies and groceries. In
comparison with a year ago, the dollar
volume o f daily sales was almost 7 per
cent smaller, boots and shoes alone re
porting a noticeable increase. Inas
much as these sales are reported in
dollars, at least a part o f the decline
may be ascribed to lower prices.
Stocks o f commodities declined in
the month and were smaller than at
the end o f April, 1929, with the excep
tion o f a slight increase in hardware.
Latest reports indicate that whole
sale and jobbing trade is fair, show
ing some gains in such lines as gro
ceries, hardware, and jewelry since
the middle o f last month.
Retail sales, computed on a daily
basis, increased sharply between March
and April, owing principally to the
fact that the Easter buying season was
about three weeks later this year than
last. For this reason, sales were about
9 per cent larger than in April, 1929,
substantial increases being shown by
all reporting lines, including depart
ment, apparel, shoe, and credit stores.
The dollar volume o f sales in the
four months o f this year, however,
was about 4 per cent smaller than in
the same period last year; only the
sales o f women’s apparel stores in
Philadelphia were slightly larger than
in the first four months last year.
Stocks held at retail establishments
at the end o f April were smaller by
about one per cent than in the previous
month, virtually all lines showing
smaller inventories. Compared with
a year ago, stocks generally were
about 5 per cent smaller, the largest
declines occurring in department and
credit stores.
Latest reports show that retail
business is progressing at a moderate
rate, and the number o f reports show
ing gains since the middle o f last
month just about equalled those indi
cating losses. Retail prices show nu
merous recessions, and this fact
undoubtedly has been reflected in the
volume o f business, inasmuch as it is
reported in dollar units.
Retail prices o f food in Philadelphia
and Scranton showed an advance of
about one per cent between the middle
o f March and April. In comparison
with a year earlier, food prices also
increased slightly in Scranton but de
clined a little in Philadelphia. Com
pared with the pre-war level, prices in
Scranton were 58 per cent higher and
in Philadelphia 52 per cent higher.
Railroad shipments by freight in
the first fortnight o f May showed
a further gain, owing chiefly to the
larger movement o f coal, merchan
dise and miscellaneous commodities.
Shipments in April also increased
instead o f declining as is usual for
that month, but they continued below
a year earlier. In the first four months
o f this year, freight car loadings in
this section were about 8 per cent
smaller than in the like period last year
and were about 2 per cent less than
in 1928.
Check
payments
have
declined
further since April. They were about
13 per cent less in the first four months
this year than last but nearly onehalf o f one per cent larger than in
the same period o f 1928.
Sales o f new passenger automobiles
in this district during April increased
less than usual for that month. In
comparison with a year ago, they were
about 27.1 per cent smaller. Sales in
the first four months were about 16
per cent smaller than last year but
compared with the same period o f 1928
they were 14 per cent larger.
Seasonal decline is noted in the sale
o f ordinary life insurance. Compari
sons with past years, however, con
tinued more than favorable.
During
the
past month the discount rate o f the
Federal Reserve Bank o f Philadelphia
was maintained at 4 per cent, and the
Financial conditions.
bank’s buying rate for bankers’ bills
has remained unchanged'at 3 per cent
for maturities up to 120 days. The
charges o f large Philadelphia banks on
prime commercial loans to customers
continue to average around 5 per cent,
but the renewal rate on call loans was
reduced on May 14 from 4y2 to 4 per
cent.
During the second and third weeks
o f May commercial loans increased
somewhat, according to the weekly
reports o f banks in four o f the larger
cities o f the district, following a
month o f decline. M ore complete re
ports, received from member banks
in 21 cities and covering the four
weeks ended May 14, show that there
was a net decline in these so-called
“ commercial” loans from 590 to 584
millions, and that loans on securities
also decreased. The banks continued,
however, to add to their investments.
Loans in total are little changed
from a year a g o ; commercial loans have
decreased, reflecting in part a decline
in business activity and lower prices,
while security loans are in greater
volume than in the middle o f May,
1929, when there was a rapid decline
in such loans. Reference to the ac
companying table shows that the recent
increase in investments has not been
sufficient to bring the holdings o f the
banks up to the amount held a year
a g o ; total deposits have increased and
the member banks have greatly re
duced their borrowings from this bank.
Changes in
leading cities
(000,000’s omitted)
M ay
14,
1930
Reported b y 88 banks:
Loans on securities........... S 577
Other (largely commer
cial) loa n s.......................
584
Reported by 99 banks:
T otal loans and discounts. 1,217
Investm ents........................
437
Net demand and time de
posits ................................ 1,397
Four
weeks
One
year
—$2
+ 81 5
-
0
-
+
6
9
+
2
- 20
14
+
2
+
18
Borrowing from the Federal Re
serve Bank o f Philadelphia has contin
ued light and remarkably steady in vol
ume at a level only about 10 millions
higher than in the fall o f 1924, when
monetary conditions also were very
easy. Nevertheless the total o f bills
discounted on May 21 was slightly
higher than a month earlier, owing
to an increased demand for accommo
dation from country banks; banks in
Philadelphia made a further small re
duction in their call upon the reserve
bank. Despite the comparatively small
amount o f bills
under discount, the
number o f banks
using this facility
remains large; the
number o f bor
rowing banks on
May 17 totaled
367, an increase
o f n e a r l y 50
banks in a period
o f four weeks,
but over 80 less
than a year ago.
This bank’s hold
ings o f United
States securities
have not changed
in the past month,
but purchased bill
holdings show a decline, particu
larly since the end o f April, reflecting
the fact that the bank’s buying rate for
such bills recently has not been reduced
in company with the decline in openmarket offering rates.
The district had an unfavorable bal
ance in the interdistrict settlements
during the four weeks ended May 21,
but this loss o f funds was absorbed to
some extent by a reduction in reserve
deposits and partly balanced by a de
cline in the demand for currency,
necessitating only a small amount o f
additional borrowing from this bank.
Federal reserve note circulation de
creased 10 millions in the period, but
this figure overstates the decline in
currency demand, as, during the
past month, an unusually large
proportion o f the currency paid out
by this bank took the form o f notes
other than federal reserve notes; this
also explains in part the decline o f 14
millions in the cash reserves o f the
bank.
The reserve ratio continues
high, having held above 80 per cent
since the end o f March.
Commercial paper sales, as reported
by four dealers operating in this dis
trict, continued heavy in April, though
Sales to
paper sales
(four dealers)
1930— F e b .. . .
M ar. . .
A p r___
1929— A p r .. ..
F ir s t fo u r
months:
1930.............
1929.............
1928.............
Totals
City
banks
Country
banks
$ 875,000 $6,100,000 $6,975,000
7,840,000 4,495,000 12,335,000
4,265,000 4,072,500 8,337,500
135,000 1,355,000 1,490,000
19,992,500 22,792,000 42,784,500
5,230,000 7,930,000 13,160,000
12,748,500 14,980,500 27,729,000
in smaller volume than in March. The
amount sold in April, and in the first
four months o f the year, far exceeded
the comparable periods o f 1929, and
also was in excess o f 1928. The in
fluence o f these purchases is shown
in figures reported by the banks; on
December 31, 1929, all member banks
in the Philadelphia district held $12,100,000 o f bought commercial paper;
on March 27, 1930, the amount held
was $34,300,000.
Outstanding acceptances o f banks
in this district amounted to $22,208,000 on April 30, a decline o f 7 per
cent in the month, but slightly more
than double the amount outstanding a
year earlier. The national figures also
declined materially in the month. L o
cal acceptances now constitute 1.6 per
cent o f the country’s total, as against
1 per cent a year ago.
Federal Reserve
Bank of
Philadelphia
(Dollar figures in
millions)
Bills discounted for
banks in—
Philadelphia. . . . $ 3 .5
Other communi
ties ...................
25.9
T o t a l b i ll s . d i s
counted ...............
Bills b ou gh t...........
United States se
curities ............
Other securities. . .
Changes in
M ay
21,
1930
29.4
4 .7
Four
weeks
-$
—$27.6
+
2 .7
-
19.8
+
-
2 .1
4 .1
-
4 7.4
6 .9
0
0
+
+
2 9.4
.6
-
2 .0
-
24.3
-
10.2
-
8 .3
46.1
1.0
T otal bills and
securities........
81.2
F e d e ra l reserv e
n o te circ u la
tion .................. 132.4
M em ber banks’ re
serve deposits. 134.2
Cash reserves......... 218.7
Reserve ra tio.........
8 1 .8 %
.6
One
year
3 .5
+
-1 4 .2
+
—
-4% +
.8
17.6
8 .9 %
Page Five
April, 1930, compared with April, 1929
Em ploym ent
April, 1930
Employment and
wages
in Pennsylvania
Percent
change since
April,
index*
0.1
97.6
Metal products.......................
Blast furnaces.....................
Steel wks. & rolling mills. .
Iron and steel forgings. . . .
Structural iron w ork..........
St. & hot wtr. htg. ap. . . .
Stoves and furnaces...........
Foundries.............................
Machinery and parts.........
94.1
6 0.5
86.4
96.4
123.3
103.0
81.3
100.8
104.9
115.3
Engines and pum ps........... 94.7
Hardware and to o ls ........... 96.8
Brass and bronze prods. . . 106.1
_
—
—
—
+
—
+
—
—
+
—
2 .2
5 .6
4 .3
0 .1
2 .7
0 .4
6 .4
3 .0
0 .3
6 .5
6 .8
12.8
2 0.8
Mar.,
1930
— 0.2
_
—
—
+
+
—
—
—
—
—
—
+
4 .8
+
4 .6
+
— 32.3
0 .7
+
— 4 .3
+ 105.0
Textile products.....................
C otton good s.......................
W oolens and worsteds. . . .
Silk good s.............................
Textile dyeing & finishing.
Carpets and rugs................
H a ts.......................................
H osiery.................................
K nit goods, Other..............
M en's clothing....................
W om en’s clothing...............
Shirts & furnishings...........
102.9
7 2.7
52.3
119.2
99.4
7 2.9
89.6
124.1
93.6
8 5.8
123.2
138.7
5.2
— 22.6
— 28.0
1 .5
+
12.7
— 1.2
— 7 .9
— 4 .8
— 1.2
— 8 .0
— 11.5
+ 10.9
3 .4
— 6 .9
-1 1 .7
— 3 .3
— 2 .4
+ 3 .4
— 0 .8
— 2 .7
— 3 .6
+ 0 .7
— 9 .0
2 .0
Foods and tobacco................. 109.3
Bread & bakery products . 110.8
C onfectionery..................... 98.0
Ice cream .............................. 99.8
M eat packing...................... 96.7
Cigars & toba cco................ 111.0
6 .9
+
1.2
+
— 0 .5
— 8 .6
— 1.6
+ 16.1
0 .8
— 0 .9
— 5 .6
+ 2 .7
1.7
+ 1.0
_
+
+
+
+
+
3 .8
4 .0
6.1
3 .0
1.3
6 .0
_
_
Page Six
+
+
+
+
+
3 .4
5 .7
0 .4
2 .3
0 .5
13.8
99.9
61.4
4 2.8
124.3
104.1
62.1
64.2
140.9
92.3
87.4
125.3
137.3
-1 5 .9
-3 6 .4
-3 7 .6
- 4 .2
-1 3 .4
-1 0 .6
-2 8 .7
-1 8 .3
-2 0 .4
-1 4 .0
-1 5 .3
+ 0 .5
- 9.1
-1 2 .9
-1 7 .1
- 9 .9
- 7.1
+ 5 .8
-1 6 .0
- 8 .6
- 8 .6
+ 12.2
- 7 .1
- 7 .7
103.4
112.6
103.6
103.7
9 4.5
9 0.0
+ 4.3
H 3 .4
“
+ 2.1
- 6 .0
+ 2 .6
+ 10.7
+
+
-
2 .8
0 .2
4 .4
4 .0
0
6 .6
+ 16.9
- 7 .9
+ 2 1 .8
-1 4 .8
- 0 .1
+ 2 8.8
+ 6 .8
- 1 .5
+ 8 .6
+ 10.5
+ 7.4
+ 7 .4
100.0
103.4
99.8
94.9
102.4
+ 1.7
+ 5.4
+ 1.1
- 8 .0
- 8 .9
- 0 .8
- 1.2
- 0 .4
- 6 .3
+ 7 .5
0.1 113.6
— 0 .2
96.3
— 0 .3
98.5
0 119.3
+ 8 .6
+ 11.7
- 4 .9
+ 0 .3
+
-
63.9
-1 7 .4
- 4 .8
- 1.5
+ 32.1
- 0 .5
6 .4
99.4 +
86.7 .+ 10.7
9 2.2 +
1.0
2 .5
103.9
* 1923-1925 average =100.
- 0 .5
- 0 .3
-3 7 .4
+ 0 .9
- 3 .0
+ 73.3
113.9
87.7
99.9
93.9
111.0
150.9
Paper and printing.................
Paper and wood p u lp ........
Paper boxes and bags........
Printing and publishing.. .
8 .8
3.2
4.3
8 8 .2f
61.2
96.8
56.8
85.0
145.4
+ 3 .0
— 2 .5
+ 7 .7
0 .8
+ 4 .2
+ 2.1
+
+
+
Street railways........................
0 .9
2 .5
2 .4
0 .5
4 .6
3 .3
1.4
2 .9
4 .9
4 .4
2 .4
7 .5
5 .5
Philadelphia
Federal Reserve
District
Allentown
area
Altoona
Harrisburg
“
Johnstown
“
Lancaster
Philadelphia
“
Reading
u
Scranton
Trenton
Wilkes-Barre “
Williamsport
“
Wilmington
York
u
u
u
u
E m ploy
ment
W age
payments
+ 6 .0 %
+ 7 .3 “
— 3 .1 “
+ 2 .6 “
+ 0 .2 “
6 .3 “
— 2 .3 “
+ 3 .3 “
9 .8 “
+ 1.6 “
10.9 “
+ 7 .4 “
— 1.1 “
+ 1 .0 %
+ 12.2 “
- 6 .0 “
- 1.2 “
- 3 .2 “
- 8 .7 “
-1 0 .3 “
- 5 .0 “
-1 1 .4 “
+ 4 .0 “
-1 9 .4 “
+ 8 .8 “
- 7 .1 “
Building
permits
(value)
+
+
+
+
Retail
trade
sales
Debits
-1 4 .0 %
- 6 .4 “
- 8 .8 “
- 2 .3 “
- 6 .6 “
-2 3 .6 “
- 5 .2 “
- 7 .3 “
-1 1 .8 “
-1 6 .0 “
-2 4 .1 “
- 5 .9 “
-1 4 .3 “
2 5 .7 %
4 7.6 “
3 6.9 “
4 4 .3 “
6 7.6 “
3 9.3 “
3 6.0 “
2 9.3 “
38.1 “
9 3.7 “
191.8 “
3 6 .1 “
61.9 “
+ 8 .4 %
+ 12.3 “
+ 15.5 “
+ 2 4.4 “
+ 11.3 8
+ 8 .6 “
+ 7 .8 “
+ 2 2 .9 “
+ 15.3 “
+ 4 .5 “
+ 2 3 .4 “
April, 1930, compared with March, 1930
Allentown
area
Altoona
“
Harrisburg
“
Johnstown
“
Lancaster
“
Philadelphia
“
Reading
“
Scranton
Trenton
Wilkes-Barre “
Williamsport “
Wilmington
“
York
+
+
+
+
+
+
1 .7 %
0 .1 “
1.2 “
0 .6 “
0 .6 “
0 .7 “
1.6 “
3 .3 “
0 .6 “
3 .6 “
2 .2 “
0 .6 “
0 .7 “
+
+
+
+
-
0 .2 %
4 .8 “
2 .7 “
0 .3 “
1.1 “
0 .7 “
8 .5 “
4 .8 “
0 .8 “
7 .0 “
3 .3 “
2 .8 “
1 .0 “
+ 152.7%
+ 3 3 8 .4 “
+ 130.4 “
3 .9 “
- 2 3.4 “
+ 4 5.0 “
+ 206.3 “
+ 172.5 “
- 4 5 .2 “
- 4 3.7 “
- 17.3 “
- 8 2.4 “
+ 160.2 “
+ 3 5 .6 %
- 8 .9 “
+ 2 1 .0 “
+ 3 1.5 “
- 2 .4 “
+ 17.3 “
+ 5 0.3 “
+ 4 0.0 “
+ 2 2 .2 “
+ 2 1 .8 “
+ 2 .7 %
+ 8 .8 “
+ 3 .5 “
- 3 .6 “
- 0 .1 “
-1 0 .7 “
+ 4 .2 “
+ 2 .5 “
+ 4 .3 “
- 0 .8 “
- 8 .8 “
-1 2 .2 “
- 0 .1 “
+
6 .8 “
Net sales
From
W holesale trade
Philadelphia
During
Jan. 1 to.
Federal Reserve April, 1930, April 30,
compared compared
District
with April, with same
period
1929
last year
Boots and shoes..
Dry good s............
Electrical supplies
Groceries..............
Hardware.............
Jewelry.................
P aper....................
+ 9 .4 %
- 0 .1 “
-1 5 .8 “
- 7.1 “
- 1.7 “
-1 2 .1 “
-2 4 .9 “
-1 3 .4 “
— 5 .6 %
- 2 .9 “
-1 2 .4 “
-1 4 .9 “
- 1 .8 “
- 7 .1 “
-2 2 .8 “
- 5 .8 “
Collections
During
April, 1930,
compared
April 30, 1930
compared with
Apr. 30,
1929
April,
1929
Mar. 31,
1930
........% ........%
- 6 .2
-1 8 .1
-1 1 .0
+ 0 .4
-1 4 .2
- 0 .9
“
“
“
“
“
“
- 3.1
-1 0 .7
- 4 .6
+ 1.4
- 3 .3
- 5 .8
- 2 .5 %
+ 2 .3 “
-1 1 .8 “
+ 11.9 “
- 3 .5 “
- 5 .7 “
-2 4 .5 “
-1 3 .6 “
“
“
“
“
“
“
- 5 .0
- 3 .0
- 8 .8
+ 4 .9
97.3
104.3
96.4
88.0
88.1
93 3{
84.8 95 6
90.9
+
+
+
+
+
+
-
-1 7 .7
-2 3 .7
-1 6 .3
- 2 .3
Leather & rubber products. .
Leather tanning..................
S hoes.....................................
Leather products, Other ..
Rubber tires and g ood s. . .
18.5
- 8.2
- 3 .2
-1 3 .1
- 5 .3
+ 11.0
- 4 .6
+ 16.5
-1 0 .5
- 8 .9
+ 7 .6
-1 0 .7
-1 8 .6
-2 6 .6
70.6
64.1
71.7
64.1
+ 12.4
— 3 .8
+ 18.7
10.4
— 1.0
+ 21.7
84.8
1.0
2 .9
— 1.0
— 7 .2
+ 7.1
Chemical products................. 104.4
Chemicals and drugs......... 88.6
C ok e...................................... 110.5
E xplosives............................ 84.0
Paints & varnishes............. 97.3
Petroleum refining............. 132.9
Anthracite................................
-
+ 9 .0
+ 5 .9
+ 24.1
- 4 .3
10.6
— 19.2
— 9 .8
3 .2
+
1.7
5 .6
0 .8
12.5
5.1
5 .5
0.3
6 .3
10.8
7 .5
Lumber products.................... 75.0
Lumber and planing m ills. 66.7
Furniture.............................. 7 5.9
W ooden boxes..................... 71.0
_
-
+
-
+ 4 .9
+ 3 .9
+ 17.0
-1 0 .8
+
—
+
100.5
Mar.,
1930
79.1
83.7
73.0
88.0
0 .5
1.9
9 .8
5.9
81.2
87.2
7 1.7
87.9
Apr.,
1929
0.6
98.8
0 60.4
0 .4
9 1.3
0.1
9 9.7
3.6 128.4
3.7 105.5
2 .0
72.6
0 .7 100.6
1.7 101.9
1.2 131.0
9 8.5
0 .5
9 3.7
1.6
3 .6 102.7
Transportation equipment... 8 6 .6f
A utom obiles........................ 70.3
Auto, bodies and p a rts... . 97.3
Locom otives and cars........ 54.1
Railroad repair shops........ 77.2
Shipbuilding........................ 89.6
Stone, clay & glass prods.. ..
Brick, tile & p ottery..........
C em ent.................................
Glass......................................
Per cent
change since
April,
index*
Apr.,
1929
All manufacturing industries (51)..........................
Payrolls
April, 1930
_
_
0 .8
— 1.1
+ 1.6
9 .7
+ 1.0
_
+ 1.8
_ 1.0
4-16 0
- 0 .8
0 .9
0.5
f Preliminary figures.
100.9{
93.0 -
{R ev ised .
6.1
1.6
2 .6
4 .9
2 .6
Comparison of
stocks
Comparison of
net sales
Retail trade
Philadelphia Federal
Reserve District
Rate of
turnover,
Jan. 1 to
Jan. 1 to
Apr. 30, 1930
Apr. 30
Apr. 30,
1930,
with
with
with
Jan. 1 to
Apr. 30, Mar. 31,
Apr. 30,
1930
1929
1929 1930
1929
Apr.,
1930,
with
Apr.,
1929
All reporting stores................ + 9 .4 %
- 4 .2 %
-5 .4 %
- 1 . 1 % 1.21 1.22
Department stores................. + 6 .7
in Philadelphia................... + 6 .0
outside Philadelphia.......... + 8 .3
4-25.8
+ 33.0
+ 9 .6
+ 55.1
outside Philadelphia . . .
W om en’s apparel stores . . + 2 4 .2
in Philadelphia............... + 23.1
outside Philadelphia . . . + 3 2 .9
Shoe stores............................... + 28.1
Credit stores............................ + 6 .2
-4 .6 “
-3 .8 “
-6 .7 “
-5 .5 “
-5 .7 “
-5 .3 “
- 0 . 7 “ 1.18 1.20
- 1 . 6 “ 1.31 1.34
+ 1 . 0 “ 0.95 0.94
“
“
“
“
“
“
“
“
“
“
“
“
-4 .3 “
-4 .0
-0 .3
+ 0 .1
-3 .5
-4 .3
-4 .2
“
“
“
“
“
“
-1 .1
-1 .6 “
-6 .9
-3 .0 “
-3 .8 “ -7 .5
+ 1 . 0 “ -4 .3
-3 .5 “ . -2 .0
-8 .9 “ -2 .0
“
“
“
“
“
“
0.77
2.03
2.20
1.33
0.85
0.74
0.75
1.99
2.14
1.30
0 .86
0 .7 5
IRO N AND S T E E L O U T PU T
PHILADELPHIA FEDERAL RESERVE DISTRICT
PRODUCTIVE ACTIV TY 1923—25AVG—100
130
EM PLO Y M EN T
1 9 2 3 — 2 5A VG — 100
STEEL—
AA
120
/x
PHILADELPI HIA
, a
ns { / V
/
/
\A a\ \ “ a r
V
\ h
/
/
Pie IR N A
O
V'x
K
//
\
r
1
\
-v
/ T
100
v
80
70
......A JU T D F R S
D S E O . EASON
AL V IA N .
/\R TIO S
1927
1928
1929
1930
60
1926
*7
\
H
ts p
V
r V 'A
i 10
90
FA CTO RY
PERCENT
"PENNSYLVA giA
y
v*
\
’
80
**
70 ^
1926
1927
' P IT T . ; b u r 6 h
1928
1929
1930
Sources: American Iron and Steel Institute
Iron Age
TR A N SP O R T A T IO N
v
\
100
r\
1
1
1
/
/
\
—
!
"' m
i
i
/
f
>
— ' -------
80
LOCOMOTI\/E S
AWARDED
V
i
\
\
60
CONTRACTS
A C T IV IT Y 1923-225A Y e — 1 0 0
|
1
____________ ___ ___
__
i \ f
f
1
»
SHIPBUIL . d i n g — >|
i/W
V
BUILDING
PRODUC T IV E
a
/
120
EQUIPM ENT
AN D
CA
>>■■■>.............
1926
1927
1928
1929
1930
Source: F. W. Dodge Corporation
Page Seven
Synopsis o f Industrial Conditions in the Philadelphia
Federal Reserve District
D em an d
O p era tion s
S tock s
M a n u fa ctu rin g
Iron a n d steel
L ittle ch an ge
low er
Steel
works
and
in
A p ril,
p rices
D eclined se a so n a lly
rolling
L ittle ch an ge, p rice s low er
S light d eclin e in A p ril and b elow
a year ago
Fair, little ch an ge
P ro d u ctio n o f iron and steel c a s t
ings d eclin ed
Q uiet season a lly
Increased in A p ril
year ago
Foundries and machine
and
above
a
Fair
Increased in A p ril
G ood
H igh er, unfilled ord e rs in cre a sin g
Fair to p o o r, p rice s low er
D eclined s h a rp ly in A p ril
high levels in M arch
T extiles
from
M od era te to h e a vy
L a rger
Q uiet, little ch a n g e from M arch,
b u y in g o f new clip in creased s e a
son a lly
P o o r, d eclined , p rice s low er
D eclined
M od erate
Fair to p o o r
D eclined
L igh t to m ediu m
Q uiet, d eclin ed s h a rp ly
C ontin ued d eclin e in A p ril
F a irly h e a v y , in cre a se d fu rth er
Fair, d ecrea sed
In creased in A p ril b u t low er
first tw o w eeks o f M ay
Q uiet, som e p rice d e clin e ; b elow
a y e a r a go
D eclined s e a so n a lly ,
last y e a r
in M od era te
L eather p ro d u cts
but
a b o v e M od era te,
ago
hea vier
th a n
Quiet, p rices low er
L ittle ch an ge
L a rg e r th a n in M arch
C olored quiet, fa ir fo r b la ck
L ittle
m on th
H ea vier in A p ril
ch an ge
B uilding m aterials
M ore a ctiv e, p rices low er th a n a In creased
yea r
y e a r a go
m a te ria lly ;
above
last Sm aller b u t
year ago
little
ch a n g e
from
Quiet, little ch an ge
D eclined
Slow , p rices d eclined
D eclined in A p ril and little ch an ge F a irly ligh t, b e lo w a y e a r a g o
sin ce then
F airly h e a v y
ye a r a g o
but
low er
Increased sea son a lly
Pottery
.......................................
Increased
U n ch an ged
F a irly h e a vy , d eclin ed
D ecreased
M od era te, d eclin ed ,
year ago
a
M od era te, sm aller
Fair, declined
th a n
Plumbing manufactures . . . Fair to p o o r, little ch an ge
sm a ller than
M iscellan eous
P a p er
.........................................
S teady, little ch a n g e in p rice s
Slight decline
U n ch an ged in A p ril
Fair, larger than m on th a g o
Increased
Sm aller than m on th and y e a r a g o
Fair, som e gain
L ittle ch an ge
L ittle ch an ge,
ago
Rubber, goods and tires. . . Increase in tires, little ch a n g e in Increased
ru b b er g o o d s
Building
A p ril p erm its in crea sed fro m last
m onth and a y e a r a g o
sm aller th a n y e a r
S to ck s o f g o o d s h ea vier b u t
tires ligh ter th a n y e a r a g o
V alu e A p ril c o n tr a c ts aw a rd ed
la rgest sin ce J an uary b u t b elow
a yea r a g o
C oa l m ining
D em and
low er
quiet
s ea son a lly ,
in A p ril in cre a s e d ; S m aller than a y e a r a g o
p rice s P ro d u ctio n
a lso in first tw o w eeks o f M ay
P rices d eclin ed fu rth er; dem an d Increased first 2 w eeks in M ay, Sm aller than la st y e a r
sh ow s slig h t in crea se in A p ril
vo lu m e sm aller th a n y e a r a g o ,
but larger than 1928
Tr?»de
Fair, nu m erous p rice declin es
W holesale and jobbing. , . . D em and fa ir gen era lly, som e d e
cline in p rices
Page Eight
Sm aller
G en era lly sm aller
of