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/✓Z'T / - 64U4/ >< THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT MARCH i, 1933 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK 0} PHILADELPHIA Business and Financial Conditions in the United States Volume of industrial production in showed a further slight increase in creased in January by less than the January. usual seasonal amount and factory em Factory employment declined be ployment and payrolls continued to tween the middle of December and the decline. Prices of commodities at middle of January by considerably wholesale, which declined further in more than the seasonal amount. De January, showed relatively little creases were reported in most lines ex change in the first three weeks of cept in the cotton, wool, and silk indus February. tries, where employment showed little Production and employment. Indus change, and in the automobile and shoe trial activity, as measured by the industries, where employment in Board’s index, which makes allowance creased. for usual seasonal changes, declined Construction contracts awarded from 66 per cent of the 1923-1925 were in about the same volume in Jan average in December to 64 per cent in uary as in December, according to the January, which compares with a low r • W. Dodge Corporation; in the first level of 58 per cent last July. Output half of February the value of awards of coal declined considerably, contrary showed a decline. to the usual seasonal tendency. In Distribution. Volume of freight creases. in activity in the cotton and traffic was somewhat smaller in Jan silk industries were somewhat less uary than in December, reflecting a than seasonal in amount, and there was reduction in shipments of coal. Sales a slight decline in production at woolen by department stores decreased after mills. Output of shoes increased sea Christmas by more than the usual sea sonally. Activity in the steel industry sonal amount. showed a seasonal increase during Wholesale prices. The general level January, and little change during the of wholesale commodity prices, as first three weeks of February. Auto measured by the index of the Bureau mobile production, which had in of Labor Statistics, declined further creased substantially in December, from 62.6 per cent of the 1926 average percent INDUSTRIAL PRODUCTION mo WHOLESALE PRICES in December to 61.0 per cent in Jan uary, reflecting substantial reductions in the prices of crude petroleum, gaso line, textiles, and dairy and poultry products. Prevailing prices for wheat, cotton, and hogs in January and the first three weeks of February were somewhat above the low levels reached in December. Bank credit. Between January 4 and February 21 there was an increase of $319,000,000 in the demand for cur rency, accompanying banking disturb ances in different parts of the country, and a decrease of $64,000,000 in the country’s stock of monetary gold. FACTORY EMPLOYMENT PERCENT 120 ------- 50 1926 1929 1930 1931 1932 1933 Federal Reserve Board’s index of factory em ployment with adjustment for seasonal varia tion. (1923-1925 average =100.) ^ BILLIONS OF COLLARS MEMBER BANK CREDIT BILLIONS OF DOLLARS 10 All Other r Loons on Securities >\ F IUU 90 0 60 1929 1950 1931 1932 Index number of industrial production, ad justed for seasonal variation. (1923-1925 aver age = 100.) 3 1933 1926 Indexes of the United States Bureau of Labor Statistics (1926=100). 1929 1930 1931 1932 1933 Monthly averages of weekly figures for re porting member banks in leading cities. Latest figures are averages of first three weeks in February. Page One These demands were met by member banks in part by the use of their bal ances at the reserve banks, which de clined by $243,000,000 during the pe riod, but continued to be considerably above legal requirements. Reserve bank holdings of United States securi ties declined by $88,000,000 between January 4 and February 1, but in creased by $70,000,000 during the fol lowing three weeks; their holdings of acceptances increased by $141,000,000 and discounts for member banks in creased by $76,000,000. Loans and investments of reporting member banks in leading cities de clined by about $100,000,000 during the five weeks ending February 15. The banks’ net demand deposits de clined by $390,000,000, reflecting largely reductions in bankers’ bal ances, and time deposits showed a de crease of $93,000,000 for the period. Money rates in the open market were slightly firmer during the first half of February. Open market rates on 90-day bankers’ acceptances, which had been % of 1 per cent, had in creased to of 1 per cent by February 20. Rates on prime commercial paper and on stock exchange loans remained unchanged. The minimum buying rate on bills at the Federal Reserve Banks of Boston, New York and Chi cago was reduced from 1 to of 1 per cent. Business and Financial Conditions in the Philadelphia Federal Reserve District Business during January was un usually quiet but since then there has been some seasonal improvement in the industrial situation even though the rate of current gain does not seem to be as rapid as at the same time in other years. Industrial production in January showed rather exceptional reductions; in early February sev eral manufacturing lines indicated some seasonal gains. While total awards of building contracts increased somewhat, construction activity de clined further from December to January. Retail trade has been un usually slow and sales in January were smaller than was normally to be expected. The total of wholesale business, on the other hand, showed Shipments of com improvement. modities by rail in February have been slightly on the increase but the January movement of general freight traffic in this section declined sharply, following a rather well sustained vol ume for several previous months. Life insurance sales during January decreased by a smaller amount than usual; registrations of new passenger automobiles also fell off sharply in stead of remaining unchanged. Com pared with a year ago, business liqui dations in January were not as nu merous nor as large in the amount of liabilities involved; but other important indicators continued at considerably lower levels than in many years past. Industrial employment, payrolls and working time showed larger than the usual seasonal reductions from De cember to January. Pennsylvania re ports covering the most important branches of industry, trade, and such services as public utilities, hotels, laundries, and dyeing and cleaning es tablishments, employed 6 per cent fewer workers in January than in De cember and their total payroll was 11 per cent smaller. These changes were computed on the basis of returns from over 5,000 establishments whose Jan uary employment exceeded 554,000 workers, drawing a weekly average payroll of about $9,391,000. Manufacturing. There have been some signs of' improvement in the market for manufactured products since the middle of January, although OUTPUT OF METALS andTRANSPORTATION EQUIPMENT MANUFACTURING AND ELECTRIC POWER PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT 1923 -25AVG=I00 1 ^ . ‘ A ■* *’ v4' V' « / .I * ;*•' ¥ ■ •Vv\A ( METALS / -\A/A ►'V* 125 *%v1» 100 PERCENT ELECTRIC PO WER USED BY IP DUSTRIES 175 150 the extent of the gain does not seem to be as broad nor as large in volume as that which usually occurs after a dull season at the turn of the year. Almost twice as many reports from a limited number of concerns show declines in current sales as those that indicate seasonal increases. The vol ume of unfilled orders for factory products at about the middle of Feb ruary was smaller than a month and a year ago, owing largely to the prevail ing hesitation to make advance com mitments. Commodity prices, as reported by lo cal manufacturers, have failed to show any perceptible strength since Octo ber and in early February reached probably the lowest levels since the pre-war days. The official price index for the country also bears out this unfavorable trend. It indicates that the general level of quotations for commodities made up chiefly of manufactored goods in January was the lowest since February 1915. Such fractional advance as occurred in the latter part of February was due partly t PRODUCTIVE V\ ACTIVITY"^ * /b 50 ADJUSTED FOR SEASONAL VARIATIONS ADJUSTED FOR SEASONAL VARIATION5 25 ^ 1928 Page Two 1929 1930 1931 ...................... .... 1932 1933 to an upturn in prices of foods and Business Indicators farm products generally. Philadelphia Federal Reserve District Most manufacturing has been against actual orders so that the sup Index numbers expressed in percentages of 1923-1925 average, which ply of finished goods is relatively “Adjusted” index numbers make is taken as 100 small, showing a further decline from allowance for the usual seasonal changes which result from an last month and a year ago. Stocks uneven distribution of business Adjusted for seasonal variation Not adjusted between the months of the year. of raw materials and products to be They are the most significant used in further manufacture held by indexes because they show im Percentage comparison provement or decline beyond the local factories registered some sea level usually to be expected. Jan. 1933 Cumu sonal increases but in the aggregate Jan Dec. Jan. Dec, Jan. ‘Unadjusted” indexes reflect with lative: Jan. 1932 1932 1933 1932 1932 merely the actual changes which 1933 for the industry as a whole they con same as may or may not be up to the preced tinue in reduced volume as compared usual seasonal expectations. Month Year ing col with the last two years. With only a ago ago umn few exceptions, therefore, the manu facturing industry of this district is Productive activity Manufacturing—total............. 70.2 55.2 52. - 4.5 -24.9 69.1 53.7 52.3p in a strong statistical position to re Metal products..................... 50.4 29.6 25. -12.8 -48.8 48.4 28.3 24.8 Textile products................... 78.9 76.1 70. - 7.6 -10.9 81.7 74.4 72.4p sume activity upon the revival of de Transportation equipment. 59.8 32.7 33. + 1.2 -44.6 59.0 32.9 33.1 Food products...................... 75.2 63.8 63. mand for goods, seasonal or otherwise. - 0.3 -15.4 73.4 63.2 62.6p Tobacco and products........ 86.5 71.3 78 +10.7 - 8.8 71.7 51.7 65.2 Factory employment and payrolls of Building materials.. !............... 37.3 16.5 12, -21.8 -65.4 30.4 14.8 10.9 Chemicals and related products 99.3 92.0 91. - 0.9 - 8.2 96.6 91.1 89.1 this district, covering eastern Penn Leather and products......... 95.5 75.6p 83, +10.7 -12.4 99.2 73.3p 86.8p Paper and printing.............. 91.9 71.9 70, sylvania, southern New Jersey and the - 1.8 -23.2 91.8 72.6 70.5 Electric power output............... 180.9 165.8 159. - 4.0 -12.0 191.8 177.4 168.8 Elec. pwr. used by industries.. 128.1 122.7 112. state of Delaware, declined more than - 8.3 -12.2 124.3 116.6 109.1 usual from the middle of December to Factory employment Penna. ... - 4.2* -16.1* 68.8 60.2 57.7 the middle of January, but there has Factory wage payments Penna. - 9.6* -36.5* 50.2 35.3 31.9 been some seasonal improvement since Coal mining. . 52.9r 72.1 52. Ip -27.7 - 1.5 58. lr 71.6 56.5p Anthracite.. that time. In the state of Pennsyl 54.0 75.0 53.Op -29.3 - 1.9 59.0 74.0 57. Op Bituminous. 46.1 54.6 46.8 -14.3 + 1.5 52.6 57.3 53.3 vania, where manufacturing is most diversified, for instance, factories em Building and real estate Contracts awarded!—total......... 38.7 32.3 37.0 +14.6 - 4.4 29.8 27.8 28.5 ployed in January 4 per cent fewer Contracts awarded!—residential 25.6 12.7 12.1 - 4.7 -52.7 20.5 12.4 9.7 Permits for building..................... 13.2 7.1 9.1 +28.2 -31.1 workers and paid 10 per cent less in 7.5 4.8 5.2 Mortgages recorded in Phila. . . 67.0 32.9 28.3 -14.0 -57.8 77.1 36.2 32.6 Beal estate deeds recorded in wages than in December. Last year Philadelphia............................ 77.0 78.8 62.2 -21.1 -19.2 72.4 77.2 58.5 at the same time employment de Exclusive of Sheriff deeds (1930 = 100)............................. -24.8* +14.2* 72.0 109.3 82.2 creased 3 per cent and payrolls 5 per Sheriff deeds (1930 = 100)........ -23.7* - 1.4* 156.5 202.2 154.3 Writs for Sheriff sales in Phila. . 805.9 1090.3 918.6 -15.7 + 14.0 cent. The difference in the range of 926.8 1112.1 1056.4 the decline in January this year as Distribution Retail trade—sales......................... 65.9 54.7 50.6p - 7.5 -23.2 compared with a year ago was due 53.5 90.6 41.2p Retail trade—stocks...................... 66.5r 56.5 56.9p + 0.7 -14.4 58.8r 54.4 50.3p Wholesale trade—sales................. 65.4 54.1 partly to the fact that more plants 58.5p + 8.1 -10.6 57.2 59.0 51.9p Wholesale trade—stocks............... 69.9 63.8 59.4p - 6.9 -15.0 68.9 59.9 58.4p continued closed through the first part Freight car loadings (Allegheny district)......................................... 61.8 53.4 50.9 - 4.7 of January this year than last. Pre 55.6 48.1 45.8 Life insurance sales........................ 148.7 98.2 111.9 +14.0 -17.6 -24.7 132.3 103.1 99.6 New passenger auto registrations 83.0 67.0 56. Ip -16.3 -32.4 liminary reports indicate that a num 44.8 36.2 30.3p ber of these plants have been reopened Business liquidations Number............................................. since the middle of last month. + 10.2* 20.0* 298.6 216.7 238.9 Amount of liabilities...................... 17.0* -68.7* 559.4 210.9 175.0 Operating time in January, as meas Payment of accounts ured by employe-hours actually Check payments........................... . 61.5 -20.0 77.0 66.4 61.6 worked in Pennsylvania factories, was Rate of collections (actual, not indexes) curtailed by 8 per cent as compared Retail trade................................. +17.8* - 1.0* 30.7 25.8 30.4 Wholesale trade.......................... - 6.5* - 3.7* with a drop of 3 per cent from De 57.1 58.8 55.0 cember to January last year. Since early 1930 the decline in working time Per cent change from (000,000’s omitted Jan. Oct. Nov. Dec. Jan. on the whole has been more pro in dollar figures) 1932 1932 1932 1932 1933 Month Year nounced than that in employment, ow ‘ ago ago ing mainly to the spread of part-time Banking and credit work without affecting the number of Reporting member banks workers on the roll. The downward Loans to customers.................... $710 $603 $596 $590 $570 -3.4 -19.7 Open market loans and in trend in wage payments in the same vestments ................................. 481 516 528 529 512 -3.2 + 6.4 period has been even sharper than that All member banks—net demand in employment and employe-hours, re and time deposits...................... 2,046 1,965 1,977 1,980 1,987 +0.4 - 2.9 flecting principally a rather wide Bankers’ acceptances outstand ing ..................................... ............. spread readjustment of wage rates 15.1 13.3 13.5 12.3 11.1 -9.8 -26.5 during the past three years. Com Federal Reserve Bank Bills discounted.......................... 119 49 49 pared with record low levels reached 51 47 -7.8 -60.5 Other bills and securities.......... 71 144 144 143 140 -2.1 +97.2 Reserve ratio............................... in July 1932, employment in January 60.4% 56.3% 56.8% 57.3% 58.2% +1.6 - 3.6 was 1 per cent larger and working p—Preliminary, time 13 per cent higher, while payrolls ! 3-month moving daily average. r—Revised. Page Three OUTPUT OF TEXTILE AND LEATHER PRODUCTS TEXTILE FIBERS UNITED STATES MILLIONS OF LBS. DOLLARS PER. LB 300 r - PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT .20 LEATHER PRODUCTS COTTON ■:*• WOOL TEXTILE PRODUCTS 1928 1929 1930 1932 1933 928 1929 1930 193 I 1932 1933 Sources: Department of Commerce, Fairchilds Publications, Dun's Revieiv were 2 per cent smaller, reaching a new record low point. Output of factory products in this district during January was curtailed further by more than the usual -vol ume, thus continuing steadily down ward since last October. Our pre liminary index number, which is ad justed for working days and seasonal changes, decreased from SS to 53 per cent of the 1923-25 average, reaching the lowest level in the past ten years and indicating that the gains made in the fall months have not been sus tained. Among the principal manu facturing groups, only those compris ing leather and tobacco products and transportation equipment reported more than seasonal increases. The sharpest declines in the remaining groups were in the manufacture of metal and textile products and in building materials. The food group as a whole registered the smallest de cline, owing mainly to increased ac tivity in sugar refining and canning and preserving. Most individual lines of manufac turing showed sharp reductions from December to January, although there were exceptional gains in the output of such commodities as pig iron, mo tor vehicle equipment, cigars, shoes, and petroleum products. Compared with a year ago, productive activity continued at greatly reduced levels with the exception of knit underwear and petroleum products, which also showed additional gains in output dur ing January. Output of electric power declined more sharply than it normally should from December to January. Total sales of electrical energy showed a Page Four drop of over 2 per cent in the month and 9 per cent as compared with a year ago. The decline in the month was due principally to smaller con sumption for industrial and trans portation purposes. Sales of electrical energy to industries, for instance, showed a decrease of 8 per cent more than usual; they were also 12 per cent smaller than last year. Building and real estate. Building and construction in January declined further, reflecting partly seasonal in fluences. Reports from 1,121 represen tative contractors in Pennsylvania showed a drop of 12 per cent in em ployment and 16 per cent in payrolls from December to January. Operat ing schedules, as indicated by total weekly employe-hours actually worked during January, also decreased 18 per cent, the sharpest curtailment occur ring in public works and in miscella neous classes of construction. Aggregate awards of building con tracts showed a small gain in January, owing principally to an increase in awards for residential construction. The average of awards for the three months, from November through Jan uary, which eliminates partly such ir regular fluctuations as those often caused by an exceptionally large single contract in a particular month, was 4 per cent lower than a year ago, continuing to reflect the influence of lower prices and industrial conditions in general. In the first three weeks of February total awards were somewhat below the average of the preceding month. Estimated cost of proposed building under permits issued in 17 cities of this district showed a further increase in January, instead of the customary seasonal decline. As compared with a year ago, however, the dollar volume of January permits was 31 per cent smaller. Construction costs, although considerably below the level of recent years, have been on the increase for several months. Conveyances exclusive of sheriff deeds declined 24 per cent in January from the unusually large number re corded during the preceding month. The value of mortgages recorded in Philadelphia during January dropped sharply from the December level in stead of increasing as is usual in this period, and was less than half the dollar volume of a year ago. Fore closures declined further in January, but the number of writs issued for sheriff sales in February showed a sharp increase to 1,892 which was the largest figure since last September. Coal. Demand for anthracite at the mines has slackened since the middle of last month. Colliery output, which averaged 152,000 tons daily during January, declined sharply instead of increasing as it usually does in that month. In the first fortnight of Feb ruary the weekly output of mines in creased substantially. January ship ments of hard coal showed a marked decline as compared with those of De cember and were about 2 per cent be low the level of a year ago. Wholesale prices of anthracite showed no change from December to January but were 6 per cent lower than in the same period last year. Sales by retail yards in Philadelphia showed little change from December to January and were in smaller volume than a year ago. Production of Pennsylvania bitumi- PAPER AND PRINTING ACTIVITY FREIGHT CAR LOADINGS PHILADELPHIA FEDERAL RESERVE DISTRICT ALLEGHENY DISTRICT PERCENT PERCENT PRINTING AND PUBLISHING MERCHANDISE AND / MISCELLANEOUS PAPER AND WOOD PULP PRODUCTION ADJUSTED TOR SEASONAL VARIATIONS ADJUSTED FOR SEASONAL VARIATIONS 1928 1929 1930 1932 1933 1928 1930 1932 1933 Source: American Railway Association nous coal declined in January, contrary to the usual seasonal tendency, but was in larger volume than in the same month last year. In early February colliery output increased somewhat. Shipments also were smaller than dur ing December, but were fairly well maintained as compared with January of last year. Wholesale prices of soft coal in the country declined fraction ally from December to January and were 5 per cent lower than a year earlier. Distribution. Retail business showed larger than the usual decline during January as compared with December. Allowing for the normal seasonal changes and for the number of busi ness days, sales of department, apparel, shoe and credit stores decreased almost 8 per cent, losses ranging from 10 per cent in department stores to 2 per cent in shoe stores. Men’s apparel stores in Philadelphia alone had smaller than usual declines. The seasonally ad justed index number, showing sales of five representative lines, declined for the second month to about 51 per cent of the 1923-25 average, following a rather exceptional rise in November. In January it was 23 per cent lower than a year before, the largest de creases in dollar sales occurring in credit, shoe and department stores. The continuance of depressed indus trial conditions and lower prices ac count for the unfavorable comparison not only with a year ago but with many other previous years. The supply of merchandise on hand was reduced by 8 per cent as compared with December, but this reduction was not as large as is customary, owing mainly to smaller decreases than usual in the stocks of apparel stores. The decline in inventories of department stores was about what was to be ex pected, while stocks of credit stores were cut down more than seasonally. Compared with a year ago, all report ing lines carried smaller stocks of merchandise. The rate of stock turn over was 7 per cent lower in January this year than last. Payments of accounts at retail in creased during January as they usu ally do, following a heavy volume of holiday sales during November and December. The ratio of collections during January to receivables out standing at the beginning of the month increased 18 per cent. Compared with a year ago, this ratio was one per cent lower. Comparable figures for cer tain Philadelphia department stores, however, showed a fair improvement in collections over December and January 1932. Total sales of eight wholesale lines combined showed a decrease of 12 per cent from December to January. This decline was smaller than usual, so that our seasonally adjusted index number indicates an improvement of about 8 per cent, owing mainly to smaller than anticipated declines in the sales of dry goods and electrical supplies, and to larger than usual gains in the sales of drugs and groceries. Comparisons with a year ago continued unsatisfac tory, owing partly to lower prices. The dollar sales of the eight reporting lines showed a decline of 11 per cent, the largest decreases occurring in the sale of jewelry, hardware, paper, and elec trical supplies; sale of groceries alone showed a gain of 4 per cent over Jan uary 1932. Inventories held at wholesale estab lishments declined almost 3 per cent from December to January instead of showing the usual 5 per cent increase and were 15 per cent smaller than at the end of January 1932. The rate of stock turnover was 3 per cent higher in January this year than last, the largest gain occurring in groceries. Collections during January were less rapid than in the previous month, the ratio of payments to receivables de clining 6 per cent in the month and 4 per cent as compared with a year ago. The railway freight traffic in this section declined more than was ex pected in January, following an almost steady rise since the middle of last year, when the figures are corrected for the usual seasonal variations. Our adjusted index number of total freight car loadings in January was 51 per cent of the 1923-25 average as com pared with 53 for December; it was nearly 11 per cent higher than the low point reached in August, indicating that the gain made in the fall months was at least partly sustained. Sales of new passenger automobiles, as measured by registrations declined 16 per cent more than customary, fol lowing an exceptionally sharp increase in the previous month. Compared with a year ago sales were 32 per cent smaller, continuing generally the downward trend which started in the early part of 1929. Premium payments on new life in surance sold in January showed a fur ther sharp gain. The index number, which is corrected for the number of business days and seasonal changes, has risen almost steadily since the sec ond quarter of last year and was 112 was supplemented by drawing upon PHILADELPHIA FEDERAL RESERVE DISTRICT reserve deposits PERCENT 19? i-25AVG.=IOO for about 4 mil l lions and by bor ! \ • i rowing from the AD. USTED FOR i f i 150 ts ® reserve bank. EASONAL VAF IATI0NS Bills discounted fiV by this bank in 1 |\ creased from 47 i j j \ 100 ([ +JA ] to 56 millions in i.... v I \h i \ the five weeks. The 1 i I r / VV yi bank’s holdings of 1 / V bought bills also in i.iV vyW A i 50 | ^ADJUSTED creased nearly 10 u 'v millions and holdi n g s of United States securities 1928 1929 1930 1931 1932 1933 rose 4 millions; Sources: R. L. Polk Company, Pennsylvania Motor List Company these acquisitions did not constitute direct extensions of in January, showing an improvement credit to local banks, but were par over December by 14 per cent. Com ticipations in federal reserve system parisons with the past six years, how purchases in the New York market. ever, continued unfavorable. The reserve ratio of the bank de Data on business liquidations were clined from 58.2 to 55.1 per cent, re more satisfactory in January this flecting an increase in federal reserve year than last, declines in failures oc note circulation. Total deposits curring in both the number and the changed little, a decline in member amount involved. Compared with De banks’ deposits being offset by a rise cember 1932, the number of commer in foreign bank deposits. The increase cial failures during January increased in cash reserves was small, the gain to 10 per cent, while the amount of lia the member banks in the settlements bilities declined 17 per cent. being balanced largely by payments to Financial conditions. During the past New York by this bank for its own month there has been an unusual de account and other transactions. mand for currency and a rise, though Member banks report a considerable by no means of equal amount, in bor decline in bank funds on deposit here rowings from the reserve bank. De and decreases in some other classes of posits of the reporting member banks deposits. Investments of these banks declined substantially, while loans to increased 9 millions .in the course of customers showed only a small re the five weeks; as they were allotted duction. nearly 12 millions of new government Ordinarily there is little net change in the demand for currency in this securities on February 1, it appears district in the period from January 18 that some small sales of securities to February 21, but this year the ex were made. The bulk of the funds cess of currency and coin payments to needed to meet deposit withdrawals banks over receipts from them was was provided by drawing upon bal approximately 26 millions. In addi ances held elsewhere, which decreased tion to this demand, about 2 millions Feb. Jan. Feb. Reporting member of funds was taken from the local 24, 18, 21, banks market by Treasury operations; al 1932 (000,000’s omitted) 1933 1933 though the Treasury withdrew over to customers— 23 millions from depositary banks, Loans On stocks and bonds $ 289 $ 288 $ 357 342 280 277 representing payment for securities al All other.................... 7 28 to open market. 9 lotted to them earlier, most of these Loans 184 239 234 United States securities 278 256 Other securities............ 260 funds, as well as sums received from Total loans and inother sources, were distributed locally. vestments......... $1,074 $1,086 *1,168 The credit to meet these demands was Net demand and time 953 897 932 deposits...................... obtained in large part from a favor Government deposits.. 21 22 13 able balance of 16 millions in the set Amounts due from 59 87 146 137 tlement of commercial and financial Amounts due to banks 168 218 transactions with other districts; this NEW PASSENGER AUTOMOBILE REGISTRATIONS JS H il A Page Six materially, by a reduction in loans to the open market, and in smaller part by borrowing from the Federal Re serve Bank. Although the more recent figures of the weekly reporting member banks indicate a decline in demand and time deposits, figures for January for all member banks show a daily average of 1,987 millions, the highest point since February 1932. This was an in crease of 7 millions over December; a rise from December to January is usual, owing no doubt in part to the deposits of currency after the holiday trade. All member banks (Daily net averages; 000,000’s omitted) 1932—October............. November......... December......... 1933—January............. 1932—January............. 1931—January............. Deposits Demand $ 965 973 985 968 1,023 1,188 Time Total $1,000 1,004 995 1,019 1,023 1,174 $1,965 1,977 1,980 1,987 2,046 2,362 Under date of February 1 there was an issue of United States Treasury notes, bearing interest at 2jHj per cent and running for five years. Subscrip tions received from this district to taled 729 millions, but the amount allotted here was a little over 17 mil lions, of which half a million was in exchange for maturing securities. Acceptances of banks in this district declined from $12,300,000 to $11,100, 000 during January, a decrease of 10 per cent, although the decline in the national total was only a fraction of one per cent. The decrease in local acceptances from the highest point, at tained at the end of February 1930, has been 58 per cent. Federal Reserve Bank of Philadelphia (000,000’s omitted) Changes in— Feb. 21, 1933 Bills discounted for banks in— Philadelphia.... $ 16.0 Other communi 39.6 ties .................... Total bills dis counted ........... $ 55.6 12.9 Bills bought............ United States secu 137.1 rities ................. 0.5 Other securities. . . Total bills and se curities ............ $206.1 Fed. res. note cir culation ........... 252.6 Member bank re serve deposits. 120.4 Governmentdepos1.6 its...................... Foreign bank de 6.2 posits ............... Cash reserves......... 210.1 55.1% Reserve ratio.......... Five weeks One year +$ 6.9 -$43.8 + - 23.4 1.9 +$8.8 + 9.8 -$67.2 + 6.3 3.8 0.5 + 78.7 +$21.9 +$16.4 + 23.1 - - 4.3 + 1.7 + 0.6 - 0.6 + + - + 4.6 4.2 - 18.7 1.9 3.1% - 4.3% + - - 1.4 9.9 LOANS AND INVESTMENTS Employment January 1933 REPORTING MEMBER BANKS—PHILA. DISTRICT MILLIONS Employment and wages in Pennsylvania Jan.* index Per cent change since Jan. 1932 LOANS TO ~ CUSTOMERS Payrolls January 1933 Dec. 1932 Jan.* index Per cent change since Jan. 1932 Dec. 1932 All manufacturing industries — OPEN MARKET LOANS AND INVESTMENTS 1932 FEDERAL RESERVE BANK OF PHILADELPHIA MILLIONS BILLS DISCOUNTED 1932 1933 Percentage change—Jan. 1933 from Jan. 1932 Allentown. . . Altoona......... Harrisburg.. Johnstown... Lancaster.... Philadelphia. Leading........ Scranton. . . . Trenton......... Wilkes-Barre Williamsport. Wilmington.. York.............. Employ ment Wage payments Building permits (value) Debits -14.0 -36.1 -37.8 -37.4 -36.1 -50.3 -28.8 -39.5 -21.7 —31 1 - 1.1 -61.6 -17.6 -19.1 - 93.3 - 24.4 - 23.7 +310.2 - 75.5 + 43.3 - 81.8 - 48.6 - 61.6 - 13.7 - 69.4 - 88.9 - 81.9 -32.1 -28.9 + 4.9 -23.4 -33.5 -16.1 -28.7 -20.7 -21.5 -26.1 -44.1 -33.4 -31.9 -12.2 -15.2 -28.0 -29.3 -14.3 -16.1 -12.1 -12.4 + 17.1 -31.3 - 8.0 - 7.4 Retail trade sales -22.6 -28.7 -23.2 -26.2 -30.5 -23.4 -42.1 -13.6 -22.4 -14.9 + + — + — + + - 3.5 1.6 3.3 0.3 6.1 3.1 5.4 2.7 3.5 i.i 0.2 0.7 9.9 -11.0 -12.0 - 5.3 +35.4 -13.3 - 6.4 -16.1 -11.5 -14.5 - 8.0 - 0.9 - 1.4 -12.5 + 3.1 + 119.7 + 163.9 +446.6 - 16.4 + 81.9 + 149.6 +261.0 - 81.0 - 89.4 - 97.4 + 48.1 - 71.8 -12.2 - 6.3 -16.2 + 9.7 -11.8 - 7.4 - 6.1 -11.1 -31.1 -14.8 -17.2 -10.6 -18.3 * Area not restricted to the corporate limits of cities given here. -16.1 - 4.2 31.9 -36.5 - 9.6 -22.2 — 4.5 -21.6 -14.2 -30.7 -11.7 - 2.5 -26.1 -25.0 -25.8 -22.3 -16.8 - 7.8 - 6.0 + 7.7 - 6.0 -10.5 -16.8 - 7.5 -28.3 - 6.8 - 4.1 - 2.6 - 8.2 -13.5 - 1.3 21.7 15.4 18.1 27.5 20.0 37.2 25.9 16.2 26.5 34.4 13.0 26.7 27.9 -45.8 -34.7 -45.2 -18.4 -62.3 -26.0 -12.5 -48.6 -42.8 -51.5 -43.5 -41.1 -21.6 -12 1 + 5.5 -12.6 -23.8 -33.3 — 4.1 -45.0 -17.8 - 7.7 - 9.7 -19.8 -18.1 - 7.9 Transportation equipment.. . Automobiles......................... Auto, bodies and parts. . . Locomotives and cars.... Railroad repair shops........ Shipbuilding......................... 36.7p 2/ . / 46.5 18.8 61.6 28.3 -33.3 -47.5 -37.7 - 2.1 - 6.1 -24.7 + 3.1 0.0 +57.1 - 6.0 - 9.0 - 1.7 18.5p 8.0 31.4 9.0 30.3 29.5 -56.7 -74.4 -54.1 -25.0 -41.3 -38.8 - 8.4 -17.5 +27.6 -20.4 -20.9 + 2.4 52.1 38.3 32.4 65.4 52.2 24.3 43.9 66.8 41.6 32.5 80.2 64.3 -22.9 -10.8 -30.6 - 6.8 -27.8 + 1.3 -17.7 - 7.8 -26.5 - 2.8 -33.2 -20.6 + 8.7 -15.3 -28.2 -12.0 - 9.6 -33.3 -23.5 -25.8 -16.8 + 13.8 -24.8 -18.4 80.9 - 6.1 - 4.6 53.8 -14.9 - 1.8 51.5 - 8.0 - 3.6 94.4 + 1.5 + 0.9 62.2 -24.8 -10.2 46.6 -11.9 - 8.3 55.2 -14.0 -13.5 100.1 -11.2 - 7.3 70.8 - 1.3 -24.2 68.8 + 6.8 - 6.4 123.1 + 11.4 +17.2 121.5 + 4.1 + 3.8 Foods and tobacco.................... Bread and bakery products Confectionery.................. Ice cream.......................... Meat packing.................. Cigars and tobacco........ 88.5 94.5 87.3 69.5 94.7 83.2 - 5.0 — 5.6 - 8.9 -15.0 - 0.4 - 2.7 - 2.4 2.1 1.2 3.6 1.4 3.0 64.5 74.5 64.1 53.2 67.7 52.7 -18.7 -15.9 -23.7 -31.7 -17.1 -14.9 - 9.0 - 4.6 -10.8 - 7.3 - 6.0 -14.0 Stone, clay and glass products Brick, tile ana pottery.. Cement.............................. Glass................................... 40.0 45.0 27.7 61.6 -23.2 -25.5 -41.4 +18.2 -10.9 - 7.4 — 9.5 — 15.5 15.8 16.0 10.1 33.7 -45.1 -47.5 -63.0 + 4.0 -18.1 - 8.0 -12.9 -28.0 Lumber products..................... Lumber and planing mills. Furniture............................... Wooden boxes...................... 33.4 13.2 38.8 52.0 -32.5 -60.7 -26.9 -11.0 -12.6 -13.2 -17.8 - 1.3 16.5 7.5 18.7 25.4 -53.0 -71.5 -51.6 -25.7 -28.3 - 9.a -33.7 -24.9 78.3 56.9 54.3 64.6 83.8 118.0 - 5.2 - 6.0 -13.0 - 9.4 - 7.2 - 2.2 + + + 0.4 60.5 2.2 43.7 1.3 18.7 0.6 43.6 0.6 50.3 0.5 106.0 -16.0 -15.5 -36.2 -32.6 -31.0 -11.1 - 0.2 + 0.2 - 6.0 -19.3 -14.0 + 2.7 Leather and rubber products Leather tanning.................. Shoes........................................ Leather products, other... Rubber tires and goods. . . 83.4 90.2 83.6 61.1 <6.5 - 4.9 + 2.2 -15.0 - 5.4 - 4.7 + 0.5 - 1.2 + 6.4 -12.8 - 1.5 54.0 58.2 50.9 49.0 49.3 -16.0 - 6.7 -30.0 -21.3 -25.6 +19.5 - 4.9 -26.0 Paper and printing................... Paper and wood pulp.......... Paper boxes and bags......... Printing and publishing... 80.3 72.9 58.0 85.4 - 9.1 - 4.6 -20.2 -10.2 - 1.5 0.0 -11.7 - 0.9 63.6 48.1 42.6 71.4 -23.3 -20.0 -34.7 -23.6 - 3.5 + 0.8 -26.4 - 3.4 Anthracite mining................... Bituminous coal mining........ Canning and preserving.......... Construction and contracting, Hotels....................... ;................. Laundries.................................... Dyeing and cleaning................ Public utilities............................ Quarrying and non-metallic mining.................................. Retail trade................................. Wholesale trade........................ 51.1 -31.1 -15.8 + 02 - 5.8 -11 9 — 27 -20 -1.6 + 0.2 36.3 -29.5 -23.1 Chemical products......... Chemicals and drugs. Coke........................ .. Explosives.................... Paints and varnishes. Petroleum refining. . . - 3.4 -27.1 January 1933 from December 1932 Allentown. . . Altoona......... Harrisburg.. Johnstown... Lancaster.... Philadelphia. Reading......... Scranton. . . . Trenton......... Wilkes-Barre Williamsport. Wilmington.. York.............. 57.7 47.2 37.8 42.2 47.7 55.1 68.9 51.7 43.6 51.6 66.7 29.3 53.9 52.3 Textile iproducts............. Cotton goods............... Woolens and worsteds Silk goods................................ Textile dyeing and finishing Carpets and rugs.... Hats............................... Hosiery.......................... Knit goods, other. . . . Men’s clothing............ Women’s clothing.. . . Shirts and furnishings MEMBER BANK’S ^ - RESERVE DEPOSITS City areas* (51)................................... Metal products.................... Blast furnaces...................... Steel wks. and rolling mills Iron and steel forgings.. Structural iron work............ Steam and hot wtr. htg. app. Stoves and furnaces........... Foundries.............................. Machinery and parts......... Electrical apparatus........... Engines ana pumps........... Hardware and tools........... Brass and bronze products -56.1 -51.3 -51.9 -54.9 -58.2 -55.1 -64.6 -62.8 -63.3 -59.0 -55.3 * 1923 1925 average = 100. -34.2 79.0 79.7 - 7.4 - 6.9 -30 6 -21.9 - 1.1 -50.4 -39.6 p—Preliminary figures. Page Seven Index numbers of individual lines of trade and manufacture WHOLESALE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT AOJUSTCO rot SEASON* "... 4 Philadelphia Federal Reserve District t.... Index numbers expressed in percentages of the 1923-1925 average which is taken as 100 “Adjusted” index numbers make allowance for the usual seasonal changes which result from an un even distribution of business be tween the months of the year. They are the most significant indexes because they show im provement or decline beyond the level usually to be expected. Not adjusted Adjusted for seasonal variations BOOTS AND SHOES Percentage comparison Jan. 1932 “Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Dec. 1932 1933 with Jan. 1933 Month ago Year ago Cumu lative: SALES Jan. 1932 Dec. 1932 Y ^ \ Jan. 1933 preced ing col umn drug: STOCKS A. At Retail trade Sales All stores....................................... Department............................. Men’s apparel......................... Women’s apparel................... Shoe........................................... Credit........................................ 50.6p 49.3p 47.5r 45.3p 77.3 70.5 66.9p 83.0 61.7 60.8 70.2r 48.7r 44. Op 65.9 65.4 54.7 Stocks of goods All stores....................................... 66.5r 56.5 52.4r Department............................. 63.4 Men’s apparel......................... 74.8r 52.4r Women’s apparel................... 100.9r 82.9r Shoe........................................... 66.6 56.4 Credit........................................ 74.Or 58. lr 56.9p 52.2p 61.2p 85.3p 54.4 55. Ip - 7.5 -10.2 - 4.6 — 5.1 - 1.5 - 9.7 -23.2 -24.6 -18.2 -13.5 -26.7 -37.3 53.5 53.7 57.lr 69.5 65.6 44.2r 90.6 96.8 77.2r 105.7 80.2 79.9r 41.2p 40 .op 46.6p 59.9p 48.0 27.7p + 0.7 - 0.4 +16.8 + 2.9 - 3.5 - 5.2 -14.4 -17.7 -18.2 -15.5 -18.3 -25.5 58.8r 56.1 59 .8r 86.3r 62.6 68.8r 54.4 49.8r 53.3 r 76.4r 55.8 55.8r 50.3p 46.2p 48.7p 73. Ip 51.1 51.2p - 7.4* 0.27 + 8.1 -39.1 +10.7 + 2.2 +64.9 + 9.7 -29.7 -18.8 - 9.7 -10.6 -21.9 - 3.8 -20.2 —25.5 + 4.1 -41.5 -44.8 -26.3 57.2 24.0 97.2 32.8 42.3 77.6 36.2 22.7 62.0 - 6.9 - 1.6 - 3 7 —24 6 - 2.4 - 6.2 - 7 3 — 7.4 -15.0 - 8.2 -17.6 -25.8 -17.0 - 8.9 - 5.2 - 7.3 Rate of stock turnover January (actual, not indexes). /Y'""\r’ * SALES DRY GOODS STOCKS SALES^ 0.25 Wholesale trade ELECTRICAL SUPPLIES 65.4 39.3 94.4 Total of all lines......................... Boots and shoes..................... Drugs......................................... Dry goods................................ Electrical supplies................. Groceries.................................. Hardware............................... Jewelry.................................... Paper....................................... 63.1 83.4 45.8 Stocks of goods Total of all lines....................... Drugs....................................... Dry goods.............................. Electrical supplies............... Groceries................................. Hardware............................... Jewelry.................................... Paper....................................... 118.6 54.1 50.4 82.0 31.6 28.5 79.1 38.1 58.5p 30.7 90.8 32.3 47.0 86.8 26.8 48 6 43.9 110.7 108.9 71.7 69.6 65.3 69.9 70.0 64.8 59.0 47.9 83.6 32.9 47.3 79.9 41.5 54.6 46.2 68.9 59.9 116.2 104.1 32.5 41.1 75.2 69.4 83.2 70.0 72.4 66.1 50.0 47.Or 68.5 67.2 51,9p 18.7 93.5 26.2 31.5 80.7 21.2 12.5p 45.7 7 <\ > r A V\\ SALES ^ An 58.4p 106.7 55.9 69.1 66.0 47.4 63.5 41.2 72.6 26.4 49.7 4o!3 99.9 120! 2 122^8 17 7 . . 54.1 76.4 53.5 56.9 + 2.2 -39 8 — 4 0 7.9 - 4.8 - 4.6* - 4 8 + 117.8 94.1 + 26 + 12.2 48.8 + 3.0 - 2 3 +24 5 71 Op -11.1 42.8p -20.0 52.8 - 7.2 . 62.6 54 IS 53.2 22.8 8.3 . 111.7 43.2 . 47.4 60.9 - 2.9 * Computed from data unadjusted for seasonal variation. Page Eight -33.7 -46.9 -40.3 19.3 39.3 31.6 35.1 74.4 38.7 71.9 13.9 149.6 111.3 50.3 45.4 45.8 102.2 97.9 45.1 31.7 21.0 88.6 104.5 77.1 25.5 69.7 60.3 98.2 104.0 89.3 54.1 68.8 138.2 62.6 — 51.5 -74.3 -54.1 -33.5 + 2.3 -15.9 -29.8 -33.9 - 8.2 +22.9 -72.5 -50.4 -65.4 -16.9* - 2.1 -15.8 - 9.1 - 8.0 -19.9 -23.6 - 4.8 -25.0 -20.9 -30.9 + 2.2 -15.0 p-Preliminary. r-Revised. r 0.34 11.3 23.9 27.2 21.2 40.0 12.0 25.9 13.2r 100.4 105.5 42.2 35.0 38.1 104.9 119.0 24.1 17.1 8.1 78.1 104.1 28.1 23.6 50.2 47.9 77.6 66.3 73.3 53.0 55.2 137.4 53.2 12.8 20.9 18.8 15.7 36.1 9.9 33.0 10.5 99.6 113.8 42.2p 32.0 30.3p 93.8p 120.3 12.4 15.7 7.3 74.5 101.3 64.9 23.8p 64.1 48.3 75.0 99.0 75.3p 42.8p 47.5 141.Ip 53.2 *• HARDWARE STOCKS Ml................. sales’^ .. JEWELFY A N ......... ^STOCKS j % 50 SALES PAPER ........... . V 79.1 +15 8 16 1 —29 1 —33 0 38.4 - 6.8 11 3 -25 7 33.3 +26.1 — 18 2 + 21 + 79 41,8p - 7.7 3 7 -18 9 0.33 / STOCKS r > Output of manufactures + 3.0* ’ GROCERIES 125 SALES Rate of stock turnover January (actual, not indexes) Pig iron............................................ Steel.... .......................................... Iron castings.................................. Steel castings................................. Electrical appai tus......... .......... Motor vehicles..................•••••■ Automobile parts and bodies... Locomotives and cars.................. Shipbuilding................................... Silk manufactures........................ Woolen and worsteds.................. Cotton products............................ Carpets and rugs.......................... Hosiery............................................ Underwear...................................... Cement............................................ Brick................................................ Lumber and products................. Bread and bakery products.... Slaughtering, meat packing. . . . Sugar refining.......... ..................... Canning and preserving............. Cigars............................................... Paper and wood pulp.................. Printing and publishing............. Shoes.......................... ..................... Leather, goat and kid................. Explosives........ .............................. Paints and varnishes................... Petroleum products..................... Coke, by-product......................... r STOCKS SALES V- sales!- 1930 1931 STOCKS / .................... 1932 1933
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