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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