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THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA

■Hi

RESERVE DISTRICT
MARCH i, 1935
%

By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA

Business and Banking Conditions in the United States
Industrial output, which had shown
a rapid growth in December, increased
further in January. Activity in the
building industry continued at a low
level. Wholesale commodity prices ad­
vanced considerably during January and
the first half of February, reflecting
chiefly marked increases in the prices
of livestock and livestock products.
Production and employment. V O 1 ume of industrial production, as meas­
ured by the Board’s seasonally ad­
justed index, increased from 86 per
cent of the 1923-25 average in Decem­
ber to 90 per cent in January. Activ­
ity in the steel and automobile indus­
tries continued to increase rapidly
during January and the early part of
February; in the middle of the month,
however, steel production declined.
Output of lumber increased in January
but was still at a low level. At cotton
and woolen textile mills, activity
showed a considerable growth while
in the meat-packing industry output
declined. Output of crude petroleum
increased further in January and the
first half of February.
Factory employment and payrolls in­
creased somewhat between the middle
of December and the middle of Janu­

ary, although a decline is usual at
this season. At automobile factories
the volume of employment increased
further by a large amount and there
were substantial increases at steel
mills, foundries, and woolen mills.
Employment in the meat-packing in­
dustry continued to decline and in Jan­
uary was at about the same level as
a year ago. Among the non-manufac­
turing industries, the number em­
ployed at retail trade establishments
and on construction projects showed
declines of a seasonal nature.
Value of construction contracts
awarded in January, as reported by
the F. W. Dodge Corporation, was
slightly larger than in December but
considerably smaller than a year ago,
when the volume of public projects
was exceptionally large. The value of
contracts awarded for residential build­
ing in the three months from Novem­
ber to January was about the same as
in the corresponding periods of the two
preceding years.
Distribution. Freight car loadings
showed a seasonal growth in January.
At department stores the volume of
business declined somewhat more than
is usual after the Christmas holidays.

Commodity prices. The general level
of wholesale commodity prices, as
measured by the index of the Bureau
of Labor Statistics, advanced from
77.9 per cent of the 1926 average in
the week ending January 5 to 79.4 per
cent in the week ending February 16.
During January prices of cattle and
beef showed substantial increases and
in February the price of hogs ad­
vanced considerably. Prices of cotton,
grains, and silk showed a decline in
January and the first few days of Feb­
ruary, followed by an advance in the
middle of the month.
Bank credit.
During the five weeks
ended February 20, member bank bal-

INDUSTRIAL PRODUCTION

WHOLESALE PRICES

MEMBER BANK CREDIT

Indexes of the United States Bureau of Labor
Statistics. (1926 =100.) By months 1929 to
1931; by weeks 1932 to date.

Wednesday figures for reporting member
banks in 91 leading cities. Latest figures are
for February 13.

PER CFNT
140

PFR CFNT

r’ACTORY EMPLOYMENT AND PAYROLLS

Employment

Payrolls'

Indexes of factory employment and payrolls,
without adjustment for seasonal variation.
(1923-1925 average =100.) Indexes compiled by
the United States Bureau of Labor Statistics.

130
/V
110

\
V

100
90

no
inn

V
N

s\
X

A
A 'AV1

90

VV

50

50
1929

1930

1931

1932

1933

1934

1936

Index of industrial production, adjusted for
seasonal variation. (1923-1925 average =100.)




Page One

ances with the reserve banks increased
by $260,000,000 and their excess re­
serves rose to about $2,300,000,000.
The principal factors in the increase
were an inflow of gold from abroad
and disbursements by the Treasury of
funds previously held as cash or on
deposit with the Federal reserve banks.

Net demand deposits of weekly re­
porting member banks in leading cities
increased by more than $200,000,000 in
the four weeks ended February 13.
Total loans and investments of these
banks showed no significant changes
during the period. Slight declines oc­
curred in loans on securities and in

holdings of direct obligations of the
United States Government, while other
loans and other securities increased
somewhat.
Yields on United States Government
securities declined slightly further and
other open market money rates con­
tinued at a low level.

Business and Banking Conditions in the
Philadelphia Federal Reserve District
Business conditions in this district
have been rather mixed since the first
of the year. After showing improve­
ment for three months, output of fac­
tory products in January failed to
maintain the usual seasonal level, while
production of coal and crude oil in­
creased further by a larger volume
than usual. But in comparison with
a year ago, output of these industries
was still 10 per cent larger, produc­
tion of anthracite fuel alone register­
ing a decline. Activity in building
trades, as indicated by building con­
tract awards and by figures on employ­
ment and payrolls, showed a further
large decrease during January and as
compared with last year.
The value of retail trade sales in
January declined by a larger amount
than usual, following an exceptional
increase in December, and was but
slightly greater than a year ago. Dol­
lar sales at wholesale establishments,
on the other hand, fell off less than
customary and continued above the vol­
ume of the previous year. Registra­
tions of new passenger automobiles
dropped sharply in the month but were
about twice as large as in January last

year. Some further improvement was
apparent during January in shipments
of commodities by rail.
The volume of employment and
wage disbursements by twelve branches
of industry and trade declined season­
ally between the middle of December
and the middle of January, according
to this bank’s indexes prepared from
reports of 10,560 establishments in
Pennsylvania which about the middle
of January employed upward of 775,­
000 workers drawing a weekly com­
pensation of nearly $16,300,000. Com­
pared with a year ago, these estab­
lishments employed 2 per cent more
workers and their wage payments were
11 per cent larger. Incomplete reports
indicate seasonal gains in factory em­
ployment and payrolls in February.
Manufacturing.
The market for
many finished goods manufactured in
this district was more than seasonally
active during January but slackened
somewhat shortly after the turn of the
month, according to preliminary re­
ports. The volume of unfilled orders
has declined since the middle of last
month, except for certain lines in the
textile, leather and chemical products

industries as well as in the case of such
building materials as lumber and pot­
tery, which registered seasonal gains.
While current sales have continued to
show a favorable comparison with a
year ago, the total of advance business
about the middle of February was
smaller, owing mainly to restricted
commitments for building materials.
Reports on commodity stocks at lo­
cal plants do not show any marked
change since the previous month, ex­
cept for the decline in the holdings of
raw materials by several industries. In
comparison with a year ago, the supply
of both finished products and raw ma­
terials has continued smaller.
Collections generally have decreased
in the month and as compared with
a year ago. Factory prices of manu­
factures show little change, despite
further advances of wholesale quota­
tions for foodstuffs and farm products
used for manufacturing and processing
purposes. The index number, which
comprises chiefly prices of manufac­
tures as compiled by the Bureau of
Labor Statistics, in the week ended
February 16 was 77.7 per cent of the
1926 average as compared with 77.9

MANUFACTURING ACTIVITY

MERCANTILE TRADE

PHILADELPHIA FEDERAL RESERVE DISTRICT

PHILADELPHIA FEDERAL RESERVE DISTRICT

PERCENT

PERCENT

RETAIL DOLLAR SALES

PRODUCTION

WHOLESALE
DOLLAR SALES'

EMPLOYMENT

PAYROLLS

1930

Page Two

1931




1932

1933

1934

1935

1931

1932

1933

1934

1935

a month ago and 78.7 last year but
was nearly 17 per cent higher than in
early February 1933.
The volume of factory employment
and wage payments in this section
shows that the general level of plant
activity was well maintained in Janu­
ary. Incoming reports indicate some
upward change in employment and
payrolls from the middle of January
to the middle of February.
The number of wage earners em­
ployed and the amount of wages paid
by Pennsylvania manufacturing indus­
tries in the payroll period nearest to
the middle of January showed a de­
cline of less than one per cent as com­
pared with the same period in Decem­
ber. Operating time also showed little
change in this period.
The rate of change in January this
year appears to have been more favor­
able than that in the previous seven
years, except for 1929 in the case of
employment. It is quite usual for fac­
tory activity to slacken in the first part
of January, owing largely to the pre­
vailing year-end custom of listing in­
ventories and general overhauling of
equipment. The interruption this year
apparently has been less pronounced
than in other years, as indicated by
productive activity in the latter part
of January and by the changes from
the middle of December to the middle
of January from 1928 to 1935.
The January index of employment
in Pennsylvania factories was about
74, relative to the 1923-25 average as
100, or 9 per cent higher than a year
ago. The payroll index of 58 was 22
per cent higher than in January 1934.
The rate at which manufactures
were produced in this district during
January was about the same as that
in December, contrary to the usual
upward tendency in this period. Our
preliminary index of productive activ­
ity, which is adjusted for the normal
seasonal change, was 69, relative to
the 1923-25 average as 100, compared
with 71 in December, but it continued
about 11 per cent higher than a year
ago.
The failure of production to main­
tain the customary level during Janu­
ary was due chiefly to exceptional de­
creases in output of such consumers’
goods as food products, knit goods,
and cigars. Large declines in the sea­
sonally adjusted index of production of
motor vehicles, automobile parts and
bodies, and cement were more than off­
set by substantial increases in output of
iron and steel products and to some
extent of chemical and allied products,
so that the
 durable group as a whole


Business Indicators
Philadelphia Federal Reserve District
Index numbers: percentages of the 1923-1925 average taken as 100
(All figures are rounded from original data)
Adjusted indexes allow for the usual
seasonal change which results from an
uneven distribution of business be­
tween the months of the year.

Not adjusted

Adjusted for seasonal variation
Percentage
comparison

Unadjusted indexes reflect merely the
actual change which may or may not
be up to the usual seasonal expecta­ Jan. Nov. Dec. Jan.
tions.
1934 1934 1934 1935

Jan.
1934

Jan.1935
with

Nov.
1934

Dec.
1934

Jan.
1935

Month Year
ago
ago

Industrial production..............

Manufacturing—total.....................
Durable goods.............................
Consumers’ goods........................
Metal products.............................
Textile products...........................
Transportation equipment........
Food products...............................
Tobacco and products................
Building materials........................
Chemicals and products.............
Leather and products..................
Paper and printing......................
Electric power output.................
Industrial use of electricity....
Coal mining.......................................
Anthracite......................................
Bituminous....................................

Employment and wages—Pa.

63
61

67
68

68
68

69p
68p

47
65
41
68
71
19
99
122
80
197
119
86
89
64

54
77
47
73
102
23
100
100
78
195
131
65
65
62

55
79
53
75
70
21
102
105
80
207
143
70p
71
60p

59
85p
46
62p
65
17
104p
116p
79
202
136
82p
84p
66p

68
47
49

74
56
55

75
58
57

74
58
57

- 5*
— 2*

+ 2* 102
+ 11* 107

108
118

110
121

104
118

-20
— 13
+ 7
-37
— 14
+24*
— 39*
+12

34
-25
— 19
11
-34
5
-43
18
+ 7
39
+ 4* 117
+10* 49
+19 858

36
14
9
8
46
137
59
1003

35
12
4
15
51
98
88
811

25
9
3
10
42
122
53
1026

45
57
64
63
89
20
55
52
73

73
70
80
69
106
45
54
53
63

llOp
58p
81p
66p
121
50
52
50
66

45p
55p
69p
7 Op
130
45
55
52
75

+82* +14*
+ 4* -40*

63
66
62
66
44
48
73
79
48
53
62
74
41
49
69
73
87
86
22
23
101
99
117
105
80
77
186 188
123
128
79
63
82
64
56 L 66

69p
69p
51p
82p
61
83p
47
62p
79
20
106p
112p
79
191
140
75p
77p
58p

Factory wage earners......................
Factory payrolls...............................
Employe-hours (1927-28= 100) . .
General—12 occupations:
Employment (1932 = 100).........
Payrolls
(1932 = 100).........

86
60

61
59

54
35

99
36

- 2
- 3
+ 2
- 4
+ 5
+ 2
-11
-19
-19
-13
+ 3
+ 1
- 0
- 2
— 7
+ 6
+ 7
+ 2

+10
+11
+16
+ 12
+26
+33
+13
-10
- 9
- 9
+ 5
- 4
- 2
+ 3
+14
- 5
- 6
+ 3

— 1*
— 0*
+ 0*

71
71
50
86
58
81
53
77
97
23
102
111
79
194
151
70p
72
57 p

+ 9*
+22*
+15*

Building and real estate

Contracts awarded!—total...........
44
Contracts awarded!—residential.
13
Permits for building—17 cities. . .
9
Mortgages recorded—Philadelphia 15
Beal estate deeds—Philadelphia..
41
Sheriff deeds (1930 = 100)..........
Other deeds (1930 = 100)..........
Writs for Sheriff sales—Phila. . . . 746

Distribution

Retail trade—sales..........................
Retail trade—stocks........................
Wholesale trade—sales...................
Wholesale trade—stocks................
Life insurance sales..........................
New passenger auto, registrations
Freight car loadings—total...........
Mdse, and misc. (64.9% of total)
Coal (23.5% of total).........

55
63
73
64
99
38
59
59
68

38
13
10
8
43

41
13
6
14
52

33
11
6
8
45

895

795

892

60
61
71
67
100
64
53
53
58

+ 1
67p 55p -18
- 2
61p 62p + 2
+ 8
72p 79p + 9
+11
70p 71p + 2
+27
115
146
+47
83
-11 + 120
93
+1
57
60
+ 6
60
+ 7
+1
56
63
70
+11
+ 2

Business liquidations

Number......................................
Amount of liabilities...............

Payment of accounts

Check payments......................
Rate of collections (actual)
Retail trade..........................
Wholesale trade...................

62

63

75

74

— 0

+ifl

64

68

81

76

26
65

28
69

29
67

27
72

— 6*
+ 7*

+ 2*
+10*

31
64

29
67

29
72

32
71

2* + 9* 72
8* +32* 59
6* +24* 64
0* - 1* 78
3* +12* 105
4* +10* 112
3* + 7* 112

76
71
75
78
115
119
117

77
72
75
78
114
119
117

79
78
80
78
118
123p
121p

Prices—United States

Wholesale (1926= 100)....
Farm products.....................
Foods......................................
Other commodities.............
Retail food (1913 = 100). . .
Philadelphia..........................
Scranton.................................

+
+
+
+
+
+

Per cent change
from
(000,000’s omitted
in dollar figures)

1934

1934

1934

1934

1935

$ 25
175
138
00.6%

$

3
168
198
66.4%

$

1
169
198
66.2%

*

170
204
67.2%

i

# 171
i

$476
541
948
14.7

*445
612
1058
13.1

*434
613
1051
13.7

$432
618
1068
12.3

Month
ago

Year
ago

217
67.2%

0
+i
+6
0

-96
- 2
+57
11

$428
643
1107
13.0

-1
+4
+4
+6

-10
+ 19
+17
-12

Banking and credit

Federal Reserve Bank
Bills discounted..............................
Other bills and securities..............
Member bank reserves.................
Ratio..................................................
Reporting member banks
Loans to customers........................
Other loans and investments....
Net deposits.....................................
Bankers’ acceptances outstanding.

* Computed from data unadjusted for seasonal variation.
! Three-month moving daily average.

p—Preliminary

Page Three

OUTPUT OF METAL AND TEXTILE PRODUCTS

VALUE OF BUILDING CONTRACTS AWARDED

PHILADELPHIA FEDERAL RESERVE DISTRICT

PHILADELPHIA FEDERAL RESERVE DISTRICT

PERCENT
— RESIDENTIAL
a*® non -residential
- - PUBLIC WORKS AND
UTILITIES

1

TEXTILES

i! i
i i
*1 1
•
n i } }l
' V*. ' i
a ffe a
fki» £ 13,3 11
*
il
1
Sr* V ays1
Mi Xar w
is Jv

METALS

}

A
»i
>. j\

?t
-

1

1930

1931

1932

1933

1934

1935

1931

1932

1933

1934

1935

Source: F. W. Dodge Corporation.

registered an additional gain of 2 per
cent over December.
Compared with a year ago, the out­
put of metal and textile products, the
two most important manufacturing in­
dustries in this district, showed the
largest increases—26 and 33 per cent
respectively. The most pronounced
declines from January last year oc­
curred in the output of food products,
cigars and building materials.
Total output of electric power fell
off by an amount that was larger than
usual, so that our seasonally adjusted
index number dropped about 2 per
cent from December to January. Sales
to industries, the largest consumers
of electric power, failed by 7 per cent
to equal the customary volume esti­
mated for January but continued about
14 per cent larger than a year ago.
Total sales of electricity for all pur­
poses decreased 3 per cent in the month
but were 2 per cent larger than in
January 1934.
Coal and other fuels. Production and
shipments of anthracite in January in­
creased 7 per cent more than is cus­
tomary and continued upward in early
February, reflecting unusually active
demand chiefly from householders. As
a result, stocks at producers’ and retail­
ers’ yards and at electric utilities have
been reduced further. Output of bi­
tuminous coal in Pennsylvania during
January also was larger than usual as
compared with December and contin­
ued upward in the first part of Febru­
ary, having followed an upward trend
since August. The demand for this
fuel chiefly by steel works and rolling
mills and other manufacturing plants
in general has increased during the
past three months, and on the whole
has been well sustained in early Feb­
Page Four




ruary. For the six-month period,
August to January, anthracite output
and deliveries showed a decline of 9
per cent compared with the same pe­
riod a year ago, while local production
of bituminous coal showed an increase
of 4 per cent in the same period.
Activity of by-product coke plants
has shown marked improvement, fol­
lowing a comparatively quiet period
since June. No significant change ap­
pears in the case of gas and fuel oil,
although signs of seasonal expansion
are apparent.
Wholesale prices of fuel and light­
ing materials have fluctuated within a
very narrow range. The index of the
Bureau of Labor Statistics was 74.0 on
February 16 as compared with 74.2
a month ago, 73.9 a year earlier and
75.2 about the middle of August.

(Output and
shipment figures are
daily averages)

Anthracite
Production.......... tons
Shipments............tons
Stocks.........1000 tons
Prices. . . (1926= 100)
Employment........No.
Bituminous
Production.......... tons
Shipments.. .No. cars
Prices. . . (1926 = 100)
Employment........ No.
Coke
Prod.. (1923-25= 100)
Prices. . .(1926 = 100)
Gas and fuel oil
Prod.. (1923-25 = 100)
Prices .. . (1926 = 100)

Per cent
change from

of 36 per cent from the level of a year
ago. This decrease was contrary to
seasonal tendency and reflected a sharp
decline in the value of residential and
non-residential awards, which more
than offset a small gain in contracts
let for public works and utilities. Con­
tracts awarded for apartments and ho­
tels showed a large percentage increase
in January, while those for family
houses, which constitute by far the
largest part of the residential class of
buildings, declined 27 per cent and
were nearly one-third smaller than a
year earlier. In early February the
total of contract awards declined fur­
ther, according to preliminary reports.
As compared with January 1934,
awards for all classes of construction
showed declines; decreases were espedally pronounced in the case of edu­
cational buildings, apartments and
hotels and certain unclassified struc­
tures whose dollar volume was unusu­
ally large a year ago.

1935
Month Year
ago
ago

222,200
+ 18
211,300
+13
1,921+ -24
82
0
124,394
+ 2

- 6
- 2
+74
+ 1
- 2

314,900* + 11
25,606
+ 4
96
- 0
146,254
+ 0

+
+
+
+

83
86

3
9
6
8

+16
+ 1

+13
+ 3

104* - 0
56.61' + 2

+ 3
-10

Sources: Bureau of Mines and Bureau of Labor
Statistics.
* Estimated.
f December.

Building contracts
Philadelphia
Federal Reserve
District

Residential:
Apts, and hotels.........
Family houses............
Non-residential:
Commercial.................
Factories......................
Educational................
All other......................

Per cent
change from
Jan.
1935
(000’s
omitted) Month Year
ago
ago
$

639
119
520
1,570
523
552
205
290

- 17
+122
- 27
- 31
- 21
- 10
- 69
- 13

-68
-90
-31
-39
— 1
- 3
-60
-70

Total buildings....
Public works and utilities:

2,209

- 27

-52

2,999

+

i

-15

Grand total.............

$5,208

- 13

-36

Source: F. W. Dodge Corporation.

Building and real estate. Awards

of
building contracts in January totaled
$5,208,000, a decline of 13 per cent as
compared with December and a drop

Prices of building materials have de­
clined fractionally since December,
continuing the gradual recession that

FREIGHT CAR LOADINGS

SALES OF NEW PASSENGER AUTOMOBILES

ALLEGHENY DISTRICT

REGISTRATIONS

PERCENT

PERCENT

UNITED STATES

MERCHANDISE AND
MISCELLANEOUS
(64,9% 0r total)

- PHILADELPHIA J---FEDERAL RESERVE
DISTRICT

TOTAL

1930

1932

1933

1934

1935

1930

1932

1935

Source: American Railway Association.

been in evidence since November of
last year.
Business at wholesale has shown ad­
ditional improvement since the turn of
the year. The January sales of eight
important lines combined registered a
decline which was much smaller than
usual, so that the extent of this better­
ment over December amounted to
about 9 per cent. As compared with
a year ago, total sales in January were
8 per cent larger, all lines with the
exception of drugs and shoes reporting
an increased dollar volume of business
over last year. In early February de­
mand for hardware increased, while
activity in most other lines continued
at approximately the same rate as the
month before, according to prelimi­
nary reports.
Retail trade sales of department, ap­
parel, shoe and credit stores combined
decreased more sharply than was to be
expected from December to January,
failing to maintain their customary
seasonal level for that month by about
18 per cent. Our seasonally adjusted
Distribution, trade and service. Ship­
ments of commodities by railroad index number of total dollar sales was
freight in this section increased more 55 in January, relative to the 1923-25
sharply than usual in January, reflect­ average as 100, in comparison with 67
ing chiefly larger loadings of merchan­ for December and 55 a year ago. Fig­
dise and miscellaneous commodities, ures for all lines showed unusually
coal, coke and forest products. The large declines in January. Preliminary
volume of revenue freight originating reports indicate that, while current
in the Philadelphia industrial area, on sales continue above those a year ago,
the other hand, showed a decline in there seems to be little evidence of im­
January instead of the customary sea­ provement in early February over
sonal increase and was approximately January. As compared with a year
13 per cent smaller than a year ago. ago, the dollar volume of January sales
In the first half of February total for all lines combined was about one
freight car loadings in the Allegheny per cent larger.
district as a whole increased further,
Stocks at wholesale showed a gain
continuing an upward trend that has of 6 per cent over December, a some­

has been in evidence since the middle
of last year. The index of the Bureau
of Labor Statistics on February 16 was
84.6 per cent of the 1926 average as
compared with 84.8 a month ago and
86.3 about the same time last year.
The cost of contemplated construc­
tion under building permits issued in
17 cities of this district declined less
than usual from December to January,
but was 34 per cent below that of a
year ago. As in the case of actual
contract awards, the dollar volume of
permits issued for new construction,
repairs and alterations continued at an
exceptionally low level as compared
with more normal years.
Ordinary conveyances declined in
January in most sections, including
Philadelphia. The value of recorded
mortgages also was generally smaller
than in December. Foreclosures, on
the other hand, showed increases in
January in the city areas of WilkesBarre, Harrisburg and Philadelphia.




what larger increase than is to be ex­
pected, while inventories of merchan­
dise at retail establishments declined
4 per cent, which was a smaller drop
than usual from December to January.
Retail stocks at the end of January,
however, were 2 per cent smaller than
a year earlier and at wholesale they
were 11 per cent larger. The rate of
stock turnover at retail was 8 per cent
and at wholesale 2 per cent more rapid
this year than last.
The ratio of collections during Jan­
uary to outstanding balances at the
beginning of that month at retail did
not rise in the usual proportion, thus
failing to maintain the seasonal level
by about 6 per cent; but it was 2 per
cent higher than a year ago. In the
case of wholesale trade, this ratio
showed a decided improvement in the
month and was 10 per cent higher than
in January 1934.
Sales of new passenger automobiles
in January, as measured by registra­
tions in this district, declined by a
much larger amount than usual, after
reaching in December the highest level
since 1931. Our seasonally adjusted
index for January stood at 83 per cent
of the 1923-25 average, as compared
with 93 for December and 38 a year
earlier.
The accompanying chart
shows that the relative trend of auto­
mobiles sales in this district has been
much the same as that for the country
as a whole, barring minor variations
as in the case of December when sales
increased here while they declined in
the country.
Activity of commercial hotels in this
district expanded between December
and the beginning of February, as
Page Five

shown by increases of 16 per cent in
room occupancy and 9 per cent in total
revenue. Further comparisons follow :

Hotel business
Philadelphia Federal
Reserve District

Per cent change
Jan. 1935 from
Dec.
1934

Jan.
1934

Capacity.........................................
Room occupancy.........................
Per cent of capacity used:
Jan. 1935...................... 52.1
Deo. 1934...................... 44.7
Jan. 1934...................... 45.8
Revenue from:
Guest rooms..............................
Food............................................
Other sources............................

— 0
+16

- 1
+13

+20
+ 4
— 1

+13
+ 10
+ 7

Total revenue.......................

+ 9

+14

Banking conditions. Increased depos­
its, decline in loans to customers and
expansion in security holdings are
shown in the figures of the reporting
member banks for the past month.
Treasury expenditures in the district
continued to exceed receipts, while cur­
rency demand increased in about the
same volume as a year ago.
Treasury receipts and disbursements
in this district during the four weeks
ended February 20, manifested chiefly
by transactions through the Govern­
ment’s deposit account at this bank,
were heavier than in the preceding
four weeks. The net excess of dis­
bursements was about 24J4 millions.
These funds, together with 2J4 mil­
lions supplied by a drop in nonmember
deposits at this bank, were absorbed
chiefly by an adverse balance of pay­
ments in commercial and financial
transfers with other districts, which
probably was caused in substantial
measure by bank purchases of securi­
ties, and by a 10 million excess of cur­
rency payments to banks over amounts
received from them. There was little
change in the reserve deposits of mem­
ber banks or in the volume of reserve
bank credit extended locally.
The Treasury again transferred or
deposited substantial sums to the credit
of this bank in order to sustain its
deposit here, but these funds were
largely absorbed by payments on
commercial account to other districts
and to a lesser extent in meeting the
demand for currency, so that the cash
reserves of the bank increased only 3
millions. The effect of this gain and a
decrease in the deposit liability on the
reserve ratio of the bank was partly
counteracted by a rise in federal re­
serve note circulation, so that the ratio
increased only from 67.0 to 67.3 per
cent.

Page Six




The volume of loans and commit­
ments approved by this bank to provide
working capital for established indus­
trial and commercial businesses in­
creased from $6,475,000 on January 23
to $6,828,000 on February 20, while
the amounts actually advanced there­
under, less repayments, rose from
$3,594,000 to $3,783,000.
The aggregate of net demand, time
and Government deposits at reporting
member banks shows a further expan­
sion to 1,112 millions on February 21,
a point more than 100 millions above
a year ago. In the last four weeks the
total deposit liability, before deductions
for reserve computations, has in­
creased 9 millions; a substantial rise
in demand deposits and in balances
held for other banks more than offset
declines of 5 millions and 9 millions in
time and Government deposits, re­
spectively. On the asset side of the
statement a reduction of 10 millions in
loans is to be found, reflecting some
decline in loans to the open market as
well as- repayments by customers. Last
year customers’ loans, other than those
having stock and bond collateral, re­
corded a spring rise of about 10 mil­
lions after the end of February; such
Reporting member
banks
(000,000’s omitted)
Loans on securities:
To brokers and dealers in N. Y. City . *
To brokers and dealers elsewhere.........
To others...................
Total loans on securities $
Acceptances and commercial paper....
T.oans on real estate.. .
Other loans....................
Total loans............ $
U. S. Gov. securities . .
Obligations fully guar­
anteed by U. S.
Government.........
Other securities............

Feb.
20,
1935

Jan.
23,
1935

Feb.
21,
1934

loans now outstanding total 241 mil­
lions as against 250 millions a year
ago.
The funds obtained from deposits
and payments on loans did not accu­
mulate as idle balances; in fact the
total of reserves at the reserve bank,
amounts due from other banks, and
of checks and other items received for
collection actually declined. Invest­
ments, on the other hand, increased
20 millions; 11 millions of this was in
United States securities and 8 millions
in obligations guaranteed principal and
interest by the Government.
Average reserve deposits of member
banks in this district increased from
204 millions in December to 217 mil­
lions in January, close to the high
point last July. Most of the increase
was reflected in a rise from 80 to 92
millions in the excess of reserves above
legal requirements.
Contrary to the trend shown in the
nation-wide figures, outstanding ac­
ceptances of banks in this district in­
creased from $12,287,000 to $13,046,­
000 during January, according to fig­
ures of the American Acceptance
Council. A decrease from 543 to 516
millions in the national figures was
due chiefly to declines in export bills
and in bills covering domestic ware­
house credits.
Changes in—

Federal Reserve
18

*

$

22
72
169
461
301
58
265

Total loans and investments......... $1,085
Net demand deposits. .
735
Time deposits...............
312
Government deposits .
65
Due from banks............
163
257
Due to banks................
Reserve with Federal
Reserve Bank....
144

$

17
167

15
165
198

22

206

12
211
a

471
290
50 \
264/

245
11

21
711
173/
$

22

250
$

506
306

244

$1,075
716
317
74
171
248

$1,056
629
301
74
113
183

147

95

Philadelphia
(Dollar figures in
millions)

Feb. 20,
1935

Bills discounted.... * 0.7
Bills bought...............
0.6
Industrial advances.
3.8
U. S. securities......... 167.1
Other securities........
0
Total bills and
securities.... $172.2
Fed. res. note circu­
lation ...................... 234.5
Fed. res. bank note
circulation—net. .
0
Member bank re­
serve deposits.... 217.6
U. S. Treasurer —
1.3
general account . .
Foreign bank depos­
1.3
its .............................
Other deposits..........
1.8
Total reserves........... 307.2
67.3%
Reserve ratio.............

Four
weeks

One
year

-$0.3
+ 0.0
+ 0.2
0
0

-$18.8
- 3.6
+ 3.8
0
- 0.5

—$0.1

-$19.1

+ 7.0

-

0

0.8

- 19.3

- 0.5

+ 63.4

- 0.9

-

+
+

+ 1.0
- 6.7
+ 50.5
+ 3.4%

0.6
2.5
3.0
0.3%

2.1

RESERVE BANK CREDIT AND THE FACTORS THAT AFFECT IT
Philadelphia Federal Reserve District
Jan. 24 to Feb. 20 inclusive—in millions of dollars
Sources of funds
Reserve bank credit extended in district. — 0.3
Commercial and financial transactions
(chiefly interdistrict)................................. —16.8
Treasury operations....................................... +24.4

Uses of funds
Currency demand..........................................
Member bank reserve deposits...................
Nonmember deposits at reserve bank... .
Unexpended capital funds of reserve bank

+10.1
— 0.5
— 2.5
+0.2

Total.
+ 7.3
Total......................................................... +7.3
Note: This table gives, in balance sheet form, a summary of the banking changes which have had an
influence on the amount of reserve bank credit in use in this district.

Employment and Payrolls
in Pennsylvania

LOANS AND INVESTMENTS
REPORTING MEMBER BANKS

PHILA. FED RES. DISTRICT

(All figures are rounded from original data)

MILLIONS

Manufacturing Indexes
OPEN MARKET LOANS
AND INVESTMENTS

Employment*

Employehours t

Payrolls*

(Indexes are percentages
of the 1923-25 average
Per cent
Per cent Jan. 1935—
taken as 100. Total and
per cent
group indexes are weight­ Jan. change from Jan. change from change from
ed proportionately.)
1935
1935
index
index
Jan. Dec.
Jan. Dec. Jan. Dec.
1934 1934
1934 1934 1934 1934
LOANS TO ^

All manufacturing.......
Iron, steel, and prods. . . .
Non-fer. metal prods. . . .
Transportation equip. . .
Textiles and clothing....
Textiles...........................
Clothing..........................
Food products...................
Stone, clay and glass....
Lumber products..............
Chemicals and prods. . . .
Leather and products___
Paper and printing...........
Printing..........................

1933

1934

1935

FEDERAL RESERVE BANK OF PHILADELPHIA
MILLIONS

;

74 + 9
60 + 8
90 + 1
57 + 7
98 + 14
98 + 17
97 + 2
101 + 9
67 + 13
50 - 8
89 — 4
90 + 6
88 + 1
83 - 1

—1
+0
-1
-1
+1
+2
-5
-6
-3
—2
-1
-0
—2
-1

58 +22
48 +25
80 +n
37 + 7
84 +42
85 +48
78 +15
84 + 8
47 +27
32 + 5
74 - 1
82 +16
78 + 7
77 + 5

Cigars and tobacco....
Rubber tires, goods. . .
Musical instruments . .

— CUSTOMERS

63 +45
75 - 6
52 +14

-7
+2
+4

44
58
45

—
+
+
+
+
+
-

0 +15
4 + 15
1 + 10
3 +11
0 +35
0 +43
2 + 3
8 + 9
3 +18
9 + 1
3 - 8
3 + 7
2 + 2
1 - 2

+42 -25
+24 — 4
+ii - 7

+ 0
+ 5
+ 2
— 5
+1
- 0
+ 5
— 9
- 4
— 11
+ 8
+ 1
- 3
- 2

+22 -23
+18 — 2
+ 9 - 4

* Figures from 2148 plants.
t Figures from 1923 plants.
Note: Indexes of factory employment and payrolls for previous years, as re­
vised, are given in our supplements dated August 1933 and February 1935 as
well as in the Business Review of the latter date.

MEMBER BANKS
RESERVE DEPOSITS

General Index Numbers
Covering twelve branches of trade and industry
Employment
(Indexes are percentages of the
1932 average taken as 100. In­
dividual indexes are combined
proportionately into general in­
dex number.)

BILLS DISCOUNTED

1933

Percentage change—January 1935 from January 1934
Manufacturing
Employ­
ment
Allentown.............
Altoona..................
Harrisburg............
Johnstown.............
Lancaster..............
Philadelphia.........
Reading.................
Scrantpn................
Trenton..................
Wilkes-Barre........
Wilmington..........
York...

Wage
payments

+ 6
+11
+13
+ 7
+ 10
+ 10
+11
+ 14
- 3
+12
+ 6
- 1
+22

+17
+49
+19
+21
+30
+21
+38
+17
+ 9
+27
+21
+ 1
+38

Per cent
change from
Jan.
1934

Dec.
1934

+ 2
+ 9
— 2
+ 3
-28
- 9
— 18
- 3
— 4
+ i
+ 7
+ 1
- 1

- 5
— 1
+ 2
+ 0
-18
-15
+ «
- 0
— 20
- 2
— 1
— 1
- 3

Jan.
1935
index

Per cent
change from
Jan.
1934

Dec.
1934

+ii
+22
— 19
+13
-12
+12
-10
+ 6
— 2
+ 2
+13
+ 3
+ 3

— 2
- 0
+10
+ 6
— 15
- 8
+ 3
+ 0
-17
— 2
— 2
+ i
- 3

1935

1934

General Index

City areas*

Jan.
1935
index

Payrolls

Building
permits
(value)

Debits

+ 80
- 79
+ 87
- 87
+ 92
- 28
— 08
- 82
+232
- 39
— 95
- 68
— 73

+ 4
+ 0
+ 9
+13
+26
+23
+14
- 1
- 1
— 2
+ 4
+26
+16

Retail
trade
sales

— 2
+18
— 5
+ 9
+11
— 2
+1
+1
+1
+13
+ 0

(weighted)___
Manufacturing.............................
Anthracite mining.......................
Bituminous coal mining.............
Building and construction.........
Quarrying and non-met. mining
Crude petroleum producing . . .
Public utilities..............................
Retail trade...................................
Wholesale trade...........................
Hotels.............................................
Laundries.......................................
Dyeing and cleaning...................

104
117
101
124
50
74
174
89
102
103
106
93
86

118
141
107
167
47
86
151
90
101
96
103
92
87

INDUSTRIAL EMPLOYMENT AND PAYROLLS
PENNSYLVANIA

PERCENT

PAYROLLS

January 1935 from December 1934
Allentown.............
Altoona..................
Harrisburg............
Johnstown.............
Lancaster..............
Philadelphia.........
Reading.................
Scranton................
Trenton.................
Wilkes-Barre........
Wilmington..........

+1
— 0
+ 2
+ 3
— 1
- 2
+1
+ 7
- 1
— 1
— 2
- 0
— 2

+1
— 0
+ 5
+24
— 2
- 3
+ 3
— 2
+ i
— 3
— 3
+ i
— 12

+316
+215
- 66
- 79
+372
- 16
+ 29
- 59
- 38
— 79
+105
- 23
— 76

- 7
- 4
— 4
- 7
- 3
+ S
-14
— 4
-28
- 7
— 6
-13
— 15

-60
-58
-59
-61
-59
-60
-61
-62
-69
-56

EMPLOYMENT

-65
1933

1934

1935

* Area not restricted to the corporate limits of cities given here.




Page Seven

Index numbers of individual lines of trade and
manufacture

RETAIL TRADE

Philadelphia Federal Reserve District

PHILADELPHIA FEDERAL RESERVE DISTRICT
PERCENT
ALL STO RES

Index numbers: percentages of the 1923-1925 average taken as 100
(All figures are rounded from original data)
BO

Adjusted indexes allow for the usual
uneven distribution of business be­
tween the months of the year.

Unadjusted indexes reflect merely the
actual change which may or may not
be up to the usual seasonal expecta­ Jan. Nov. Dec. Jan.
tions.
1934 1934 1934 1935

STOCKS

Not adjusted

Adjusted for seasonal variation

V,
V\?

Percentage
comparison
Jan.
1934

Jan. 1935
with

Nov.
1934

Dec.
1934

Jan.
1935

Month Year
ago
ago

\

U-

SALES

40
DEPARTMENT STORES

80
SALES

Retail trade

Sales
Total of all stores...........................
Department.................................
Men’s apparel.............................
Women’s apparel.......................
Shoe...............................................
Credit............................................

55
54
46
74
62
48

60
58
57
77
63
60

67p
65p
OOp
92p
7 Op
62

55p
54p
54p
75p
OOp
45p

Stocks of goods
Total of all stores..........................
Department.................................
Men’s apparel.............................
Women’s apparel.......................
Shoe...............................................
Credit............................................

63
56
64
86
54
74

61
54
60
88
54
67

61p
51p
58
89
52p
73

62p + 2
54
+ 5
69
+19
90
+ 0
51p - 2
69p — 5

-18
-17
-10
— 18
— 14
-28

+1
0
+17
+ 2
— 4
- 7

45
44
47
66
49
32

73
70
63
93
67
77

HOp
115p
97p
137p
91p
96

+
+
-

57
49
51
73
51
70

70
63
68
107
58
76

58p
49p
59
83
52p
68

Aa

45p
44p
55p
67p
47p
30p
55p
48p
55p
77
48p
66p

2
3
8
5
6
6

STOCKS

0.26

Sales
Total of all lines............................. 73 71
72p
Boots and shoes......................... 51
36 33p
Drugs............................................ 88 86 93
Dry goods.................................... 39 36 37
Electrical supplies..................... 69 60 51p
Groceries...................................... 108 103 111
Hardware..................................... 38 47 48p
Jewelry.......................................... 37 40 42
Paper............................................. 56 62 63
Stocks of goods
Total of all lines.............................
Boots and shoes.........................
Dry goods....................................
Electrical supplies.....................
Groceries......................................
Hardware.....................................
Jewelry..........................................
Paper.............................................

79p
46p
8 bp
40
76p
120p
40p
37
59p

MEN'S APPARE

Y A
VJ\

A

V*

\

SALES

40

+ 9
+38
- 8
+ 9
+50
+ 9
-17
-11
- 6

+ 8
-10
- 3
+ 3
+ 11
+ 11
+ 6
+ 1
+ 7

64
31
91
32
46
101
30
21
58

80
38
89
47
79
113
53
58
65

81p
32p
94
38
84p
112
53p
86
60

69p
28p
88p
33
51p
112p
32p
22
62p

71p + 2
21
- 6

+11
-11
+ 6
- 6
+18
+ 6
+ 8
- 6

69
18
120
44
82
89
55
58
56

66p
17
111
40
74
86
56p
49
53

70p
21

45
74p
82
63p
58
60p

63
24
108
40
74
73
60
46
62

- 3
-12
- 2
+ 7
- 6
+ 8

STORES

.*.

A

20
women's apparel stores

STOCKS

A

64 67 7 Op
23 20 22
110 119 118
42 45 46
78 76 83
84
70 81
59 59 59p
61
53 57
63 56 55

V*..*'—...,.*

• STOCKS

0.28
•

Wholesale trade

/'y"*

20

Rate of stock turnover
+ 8*

'

42
70p
85
63p
50
59p

\jk

.

a Ih\

Tv V

11

AT

\.

SALES

40
SHOE STORES

Rate of stock turnover
+ 2*

Output of manufactures

Pig iron.................................................
Steel.......................................................
Iron castings........................................
Steel castings.......................................
Electrical apparatus..........................
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.......................

0.43
SALES

31 20 13 20
44 45 48 51
54 43 48 53
33 39 43 47
61 79 87 89
15
16 20 19
60 59 79 58
19
19
15 19
95 123 118 117
83 94 93 100
37 47 53 61
35 35 38 40
43 57 64 76
84 106 125 120
69 121 121 108
29 29 33 23
27 28 27 26
16 15
16 18

Slaughtering, meat packing............ 93 96 94
Sugar refining...................................... 117 96 182
Canning and preserving................... 43 54 54
Cigars.................................................... 86 85 97
Paper and wood pulp........................ 59 61 60
Printing and publishing................... 84 80 83
122 110 134
Leather, goat and kid....................... 112 99 89
Explosives............................................ 66 76 69
Paints and varnishes......................... 71 60 62
Petroleum products........................... 140 139 147
Coke, by-product............................... 74 73 74

+52
+ 5
+10
+ 11
+ 2
-22
-27
+ 0
- 1
+ 8
+13
+ 5
+18
- 3
-11
-30
- 2
- 2
— 13*
82
-12
9
-95
53p - 3
78
-19
61
+ 3
82
- 1
134
- 0
92p + 3
68
“ 1
65
+ 5
147p + 0
83
+12

* Computed from data unadjusted for seasonal variation.


Page Eight


0.42

-33
+16
- 1
+43
+47
- 3
- 3
+30
+24
+21
+63
+15
+76
+43
+56
-20
- 3
- 1
— 8*
— 12
-93
+22
- 9
+ 4
- 3
+10
-18
+ 4
- 8
+ 5
+13

30
43
49
35
87
14
59
14
96
85
37
36
41
87
68
20
25
14
83
104
81
42
70
58
84
125
119
66
64
139
74

p—Preliminary.

20
43
44
36
83
18
54
17
123
95
51
36
64
121
123
28
28
18
87
106
62
59
102
61
81
104
96
76
62
140
70

13
45
45
41
85
15
77
19
124
95
50
41
61
121
119
27
26
15
89
101
118
55
70
60
84
114
97
68
60
147
72

20
50
48
50
84
13
57
19
120
102
61
[41
\ 71
125
106
16
24
14

60

h
*

L_

M, A
‘4T *■**

"** "1

*

STOCKS

20
CREDIT STORES

nr
rpA

STOCKS

90
6
52p
64
61
82
137
97p
68
59
146p
83

1 •* '*

Vyj

•

V

Ai

^ SALES

20
1932

1933

1934

1935


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102