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THE BUSINESS FEDERAL RESERVE BA^K OF PHILADELPHIA MARCH 1, 1943 Spectacular actions designed to adjust the 4 t < economy more completely to the war were taken in the past month in both production and civilian consumption. In the field of production the President issued an executive order on man power, stating that subject to such regulations as might be issued by the Chairman of the War Manpower Commission no place of employment shall be deemed to be “making the most effec tive utilization of its manpower if the mini mum workweek therein is less than forty-eight hours per week.” The Chairman of the War Manpower Commission, pursuant to this order, designated 32 areas of labor shortage, none of them in this district, where, subject to certain exceptions, the objective of a forty-eight hour minimum must be reached. Plants in such areas must cease recruiting employees until the ob jective is attained. The requirements of over time pay for work in excess of legal, agreed, or customary work weeks were not changed by the order. In the field of civilian consumption the Office of Price Administration rationed shoes and many processed foods. Rationing of shoes, undertaken because of a critical shortage of heavy sole leather, began without warning on February 9. Rationing of several hundred processed foods was begun on March 1 after extensive publicity both prior to and during the week in which sales of such foods to consumers were prohibited. These measures are designed to assure an equitable distribution of available civilian supplies. Control over prices, through temporary ceilings, has been extended to many fresh fruits and vegetables. Requirements of war are reflected also in less spectacular developments. The rapid com pletion of necessary facilities has resulted in declining activity in building. In addition there have been considerable reductions in the volume of contemplated work. At war plants output continues at record levels, more than offsetting declines in the production of goods for civilians. In achieving this larger output industry pur chased more electric power. Although produc tion of coal was smaller than usual in January, primarily because of work stoppages earlier in the month, the anthracite industry and many bituminous collieries have now adopted the sixday week to help meet the exceptional demands for fuel. The high rate of activity has maintained in comes of wage earners at the peak levels estab lished in December as expansion of employment at plants producing heavy goods offsets declines in plants producing lighter goods. The continuation of large incomes in turn maintained retail trade at high levels in January and made possible heavy anticipatory purchases of clothing, after shoes were rationed early in February. Although still greater than a year ago, the value of retail inventories declined Page One INDUSTRIAL AND TRADE ACTIVITY FACTORY THIRD FEDERAL RESERVE DISTRICT PAYROLLS PENNSYLVANIA PERCENT PER CENT 192 3-25AVC. =100 250 CAP TAL, G OODS / / 200 PRODUCTION 150 SALES — ioo ______ ^* ''"S. CONSUMERS GOODS . . . . . . . . . . . . . . .1. . . . . . . . . . . . . . . . . . 50 1938 1939 1940 1941 1942 1943 1938 193 9 1940 1941 1942 1943 more than usual in January. Wholesale inven tories, which increased somewhat in the month, remain considerably smaller than a year ago. Shipments generally continue large although deliveries to civilians are below the levels pre vailing in the early weeks of 1942. The Victory Fund organization is being per fected in this district as elsewhere in the coun try to enlist a substantial part of current high incomes in the war effort. The next major Treasury drive will begin on April 12. Factory employment and wage payments in Pennsylvania were unusually well maintained in January. The number of wage earners ap proximated the December peak of 1,200,000, and payrolls remained at the record level of $46 million a week. Compared with a year ago, employment increased 6 per cent and wage dis bursements 25 per cent. Total working time also was about the same as in December, but 12 per cent greater than in January 1942. Ac tivity increased in the month in certain heavy goods lines, reflecting a further expansion in munitions industries; but declines were reported at plants turning out lighter products, including textiles, foods, and leather manufactures. Manufacturing. The demand for factory products in this district remains strong. In some heavy goods lines, the volume of orders has risen to new peaks, reflecting continued ex pansion in military and Lend-Lease require ments. Commitments for the products of many nondurable goods industries, however, are de clining, as raw material shortages and the scar city of skilled workers make it increasingly diffi cult to assure delivery within reasonable periods; in some instances it has become neces sary for manufacturers to accept new business on a quota basis. The principal exception to this trend is reported at clothing mills, where the volume of Government orders has decreased temporarily, and raw wool allotments for civil ian apparel have been increased recently by the WPB. Operations at war plants are maintained at record levels, but production is still decreasing in a number of nonessential lines. Output of many building materials has been curtailed in recent months, as a large volume of contem plated construction has been postponed until after the war. Unfilled orders for some durable goods are increasing, and backlogs remain heavy in the case of many lighter products. Page Two Weekly income of workers at reporting fac tories in Pennsylvania rose to a new high average of $42.03, from $41.86 in December, and $35.25 in January 1942. Average hourly earn ings increased in January to 97 cents, a gain of about 11 cents an hour over a year ago, and the highest in records back to 1927. Average working time continued at the twelve-year peak of approximately 44 hours reached in De cember. In Delaware factories employment and work ing time decreased somewhat from December to January, while payrolls showed a small gain. The number employed was 25 per cent and the volume of wage payments 50 per cent greater than in January 1942. Total employee hours worked increased about one-third in this period. ^ * OUTPUT OF HOURLY EARNINGS AND WORKING TIME PENNSYLVANIA FACTORIES CENTS HOURS STEEL INGOTS % OF RATED CAPACITY PERCENT AVERAGE HOURLY EARNINGS \ ^ UNITED STATES HOURS WORKED 1938 1940 1942 Output of factory products in this district was unusually well sustained in January by the exceptionally high rate of activity in heavy in dustries. The production of durable goods on a seasonally adjusted basis increased 4 per cent in the month to a level 40 per cent above January 1942. At plants making lighter prod ucts, including many textiles and shoes, output declined 4 per cent from December to January and was little larger than a year ago. Production of electric power was well sus tained in January at a level 9 per cent above a year ago. Sales to industries increased more than seasonally in the month, and were 19 per cent greater than in January 1942. Coal and other fuels. Demand for all fuels continues exceptionally heavy. The tight sup ply situation in solid fuels, made more acute by the stoppage of work at anthracite collieries in January, has eased somewhat in recent weeks. Sales of hard coal at the mines increased in early February, as dealers replenished stocks that had declined to unusually low levels in the preceding month. Manufacturing plants and other industrial consumers of bituminous coal have been purchasing larger quantities to meet the requirements of expanding operations. Fur ther increases in capacity at blast furnaces are reflected in a growing demand for coking coal and by-product coke. Ceiling prices for anthracite and bituminous coal have been revised upward by the OPA to offset increases in the cost of production incident to establishment of a longer workweek in both industries. EASTERN PENNSYLVANIA 93 9 940 19 4 1 942 1943 Output of anthracite declined 11 per cent in January to approximately 4,300,000 tons, and was the smallest for the month since 1937. Fol lowing strikes at a large number of collieries in the early part of the month, production ex panded sharply to reflect fully the influence of operations on a six instead of a five-day basis. Production.of bituminous coal in Pennsylvania increased less than usual from December to January and was below the level of a year ago. A contraseasonal gain in early February was due in part to the adoption of a six-day work week at some collieries. Shipments of soft coal expanded in January, as producers complied with requests for a substitute fuel in certain an thracite-consuming areas. Building. Construction activity in this dis trict has slackened further since the turn of the year, reflecting in part the postponement of a substantial volume of new building not vital to a successful all-out war effort. Curtailed opera tions in the industry as a whole are releasing vital materials, manpower, and equipment for the production of military and Lend-Lease goods. Further declines in building are in prospect in coming months. The value of new contract awards declined very sharply in January to a level 30 per cent below a year ago. Substantial decreases were reported in the month for nearly all classes of construction, the most pronounced being in contracts for public works and utilities and nonresidential buildings, including factory and commercial structures. Total placements in January amounted to only a little over $13 mil- TEXTILE ACTIVITY BUILDING CONTRACTS EMPLOYEE-HOURS IN PENNSYLVANIA PERCENT THIRD FEDERAL RESERVE DISTRICT ______ TOT/ L COTTON GOODS /fi - WOOLENS AND WORSTEDS V v ^ INDUSTRIAL I93S 1940 194 1 194 2 I 943 lion, as against a thirteen-year peak of $64 mil lion reached last November. Apts, and hotels.............................................. Factories................................... All other................................. Total buildings..................................... . Public works and utilities........................ January 1943 (000’s omitted) Per cent change From From month year ago ago $ 3,993 2,482 1,511 3 6,253 207 4,356 214 1,476 - 47 - 58 - 2 - 77 - 66 - 61 +1J6 - 90 - 7 +266 - 58 - 32 - 88 - 31 +590 + 28 $10,246 3,151 - 71 - 86 - 24 - 44 $13,397 Building contracts Philadelphia Federal Reserve District - 77 - 30 Source: F. W. Dodge Corporation. Trade. Retail sales in this district in Janu ary decreased less than seasonally from the all time high reached in December. Sales in the first three weeks of February reflected the in fluence of the heavy anticipatory purchases of clothing that followed the rationing of shoes early in the month. Dollar sales by department, women’s apparel, and shoe stores increased on an adjusted basis from December to January, but business at men’s apparel stores did not measure up to sea sonal expectations. Sales of shoes were 15 per cent greater than a year ago and a moderate increase was reported in the case of women’s apparel. Department store sales showed only a small decline from the high level prevailing in January 1942, while sales of men’s apparel were reduced by more than one-third. Inventories declined more than seasonally in January at reporting department and shoe Page Four ..v» 1938 1939 » ' ft A 1940 mHi v 1 1 >■ i t i\; >]f »\'V f~ 1941 1942 i 1943 stores, but they were virtually unchanged at women’s apparel stores, where substantial de creases are usual. At the end of the month stocks in all lines were larger than a year earlier, the most pronounced increase being at women’s apparel stores. Outstanding commit ments for merchandise at department stores expanded sharply in January and were nearly 20 per cent greater than a year ago. Wholesale trade sales in the aggregate were maintained at about the December level, sharp gains in the case of dry goods, shoes, and paper being offset by declines in most other reporting lines. Total sales were 6 per cent larger than in January 1942, reflecting increases in all branches of trade except hardware and paper. Inventories at wholesale establishments in creased somewhat from December to January but were substantially smaller than a year earlier. Rail freight shipments in this section con tinued heavy during January. Loadings of all classes of commodities except coal, coke, and livestock increased in the month on a seasonally adjusted basis. Although the number of cars handled by the carriers was less than a year ago, the volume of freight was larger, owing to heavier loadings per car. Banking conditions. The Secretary of the Treasury announced that the second major fund drive of this war would begin on April 12. Greater emphasis is to be placed upon purchases of Treasury securities by others than commer cial banks. In view of the size and urgency of the task DEPOSITS AT MEMBER BANKS MEMBER BANK RESERVES THIRD FEDERAL RESERVE DISTRICT THIRD FEDERAL RESERVE DISTRICT MILLIONS MILLIONS 2200 TOTAL PHILADELPHIA ' BANKS \~ 2000 EXCESS BANKS 1600 REQUIRED 1200 1939 the Treasury has consolidated and strengthened the forces on the financial sector of the fighting front. Just as the military authorities have blended the army and navy into a unified com mand in a given area, so the Treasury has fused the two fund-raising units, the War Savings Staff and the Victory Fund Committee, into one working unit to be known as the “United States Treasury War Financing Committee.” The chairman of this committee will be a newly ap pointed National Director of Sales. Similar committees will be established in each of the 12 Reserve Districts with the president of the Reserve Bank as chairman with full authority and responsibility under direction of the na tional director. 1930 1941 1942 1943 the beginning of the defense program in the early summer of 1940 holdings of Governments have risen nearly $700 million. Recent changes in other types of outstanding credit have been much smaller. Disbursements were made on credits to war industries, but over the five-week period total commercial loans were increased only slightly and remained substantially smaller than a year ago. Deposits of individuals and business con cerns were raised to a new high of $1,733 mil lion on February 24 by Treasury disbursements and funds gained in the interdistrict settle ments. The increase of $100 million in late weeks extended the gain in the past year to $273 million. Public debt operations of the Treasury in February were largely routine. Delivery of a new issue of certificates of indebtedness on the first of the month, while principally to provide funds for the redemption of a maturing issue, also provided some new money. Weekly place ments of Treasury bills in excess of maturities supplied about $800 million; in the Third Fed eral Reserve District weekly awards averaged larger than in either January or December. Sub stantial amounts also were raised by sales of savings bonds. Member bank reserves have not changed ma terially over the past month. A decline of $6 million to $667 million was due principally to the heavy demand for currency. The Treasury drew actively upon balances with depository banks, but its total receipts were only $16 mil lion above expenditures. The effect of currency and Treasury operations upon reserves was largely offset by funds received from other dis tricts. At reporting banks in leading cities of the district the investment in Governments in creased by $44 million in the five weeks ended February 24, reflecting chiefly the new certifi cates and increased holdings of Treasury bills. The portfolio now aggregates $1,135 million, or 62 per cent of all earning assets; this proportion will increase as the war is prolonged. Since In view of generally comfortable reserve po sitions and the availability of the Treasury bill as a means of securing temporary accommoda tion, few member banks in this district have been borrowing from the Reserve Bank. Hold ings of bills acquired under the repurchase op tion have not changed materially since the mid dle of January and outstanding industrial ad vances of this Bank have been steady. Page Five BUSINESS STATISTICS Employment and Income Production in Pennsylvania Philadelphia Federal Reserve District Industry, Trade and Service Adjusted for seasonal variation Per cent change Indexes: 1923-5=100 Jan. Dec. Jan. 1943 1942 1942 Indexes: 1932=100 Year ago 144 149 233 92 174r 72 586 r 104 141 55 143 115 94 121 r 123r 173r 87 156 r 69 r 329 90 134 63 153 119 93 0 + 20 +1 + 22 + 4 + 40 - 4 -j- 1 0 + 12 - 6 - 2 + 6 + 89 - 3 + 12 - 2 + 3 + 2 - 10 + 3 - 3 - 8 - 11 - 3 - 2 143p 142 148p 146 119 120 168 69p 629p 99p 114 47p 145p HOp 92 167r 71 606r 102 102 50 141 108 95 150 71r 330 89 111 52 149 123r 93 104 140 82 63 58 55 83 160 84 70 30 116 130 68 66r 52r 64 78 145 102 72r 34 104 112 110 140 82 r 97 r 151 81 93 165 65 63 82 459 373 381 310 98 57 100 134 91 94r 125 113r 104 156 60 57 84r 474 343 357 275 + + + + + + + + - 100 133 79 63p 60 55p 78 155 62p 66 27 111 91 112 113p 138 84 93 125 87p 100 16ip 59 56 79 450 374 391 326 - 1 - 3 - 5 - 2 + 2 + 1 - 9 - 1 + 5 + 1 - 1 - 2* -12 0 + 2 - 2 + 2 - 3 -17 +« + 8 - 2 -10 -11 - 4 - 2 0 + 3 + 5 103 131 84 r 60 62 55 80 158 69 68 29 113 loo 112 77 73 112p 112 113 101 83 r 83 98r 93 128 128 92p 88 90 90 161p 160 69 68 67 65 86 90 432 432 397 399 403 392 317 294 113 128 69 66 r 53r 63 82 142 71 67r 32 96 107 39 97 110 90 94 r 127 120r 94 156 69 66 95 455 364 368 266 165 64 190 399 183 60 234 426 96 50 158 121 -10 + 7 -19 - 6 + 70 + 29 + 21 +230 145p 150p 241p 89p Metal products....................................... 175 67p Textile products..................................... Transportation equipment.................. 621p Food products........................................ lOlp Tobacco and products.......................... 138 56p Building materials................................. Chemicals and products...................... 148p Leather and products........................... 106p 92 Paper and printing............................... Individual lines 103 136 78 Silk manufactures................................ 62p Woolens and worsteds.......................... 59 Cotton products..................................... 56p Carpets and rugs................................... 75 Underwear............................................... 158 Cement..................................................... 88p Brick.......................................................... 71 30 Lumber and products........................... INDUSTRIAL PRODUCTION........... MANUFACTURING.............................. + + 4+ 11 4 15 5 15 14 4 9 13 1 14 16* 7 96 12 3 8 0 0 23 3 3 2 2 5 5 9 9 19 183 52 205 510 203 58 252 511 107 40 170 155 GENERAL INDEX........... Manufacturing...................... Anthracite mining............... Bituminous coal mining . . . Building and construction . Quar. and nonmet. mining Crude petroleum prod........ Retail trade........................... Wholesale trade.................... Hotels...................................... Laundries............................... Dyeing and cleaning........... -14 - 2 ♦Area not restricted to the corporate limits of cities given here. Page Six 1 -57 -58 • -11 - 1 - 4 -18 + 3 - 2 1 +51 +32 +68 +18 2 2 1 1 -58 -55 -56 -61 -62 -57 48 83 69 75 81 56 21 67 • + + - -10 -16 - 1 1 +16 +10 +34 + 1 -58 -58 -53 + + + - + 50 + 83 - 71 - 81 - 93 - 63 - 76 - 75 - 82 - 79 +184 •1 0 + 1 - 2 - 1 16 - 76 1 Wilkes-Barre___ Williamsport.... Wilmington........ York..................... - Jan. 1942 1 +19 + 5 +15 + 7 +36 +45 +13 +15 Dec. 1942 1 + 1 - 4 0 + 8 0 + 1 0 - 5 Jan. 1942 1 + 7 - 3 - 4 - 8 +10 +18 - 6 + 2 Dec. 1942 1 - 1 0 - 1 - 1 + 1 + 1 - 1 - 1 Jan. 1942 1 Allentown........... Altoona............... Harrisburg......... Johnstown.......... Lancaster............ Philadelphia.... Reading............... Scranton............. Dec. 1942 1 Jan. 1942 1 Dec. 1942 1 Jan. 1942 - 3 0 -24 - 2 — 6 — 5 +1 0 -24 - 2 - 3 + 2 — 6 +20 +25 - 3 + 5 +21 +H +13 + 3 0 - 2 +10 + 3 + 6 Payrolls* Per cent Per cent Jan. change from Jan. change from 1943 1943 indpx Dec. Jan. index Dec. Jan. 1942 1942 1942 1942 Indexes: 1923-25=100 TOTAL...................................... Iron, steel and products. . . Nonferrous metal products. Transportation equipment. Textiles and clothing.......... Textiles................................. Clothing............................... Food products...................... Stone, clay and glass.......... Lumber products.................. Chemicals and products. .. Leather and products......... Paper and printing............. Printing................................. Others: Cigars and tobacco........... Rubber tires, goods........... Musical instruments......... 117 127 194 134 88 80 118 liS 92 51 120 90 101 93 0 0 + 1 + 3 - 1 - 1 - 1 - 2 - 2 - 1 +1 - 2 - 1 - 1 + 6 + 7 + 3 +35 - 3 - 3 - 4 + 2 - 7 -16 + 4 - 5 — 5 0 176 247 376 226 115 107 152 151 120 68 183 126 132 115 0 +1 + 3 + 1 - 2 - 2 - 2 - 2 - 4 - 5 0 - 1 - 3 - 4 +25 +25 +26 +57 +17 + 18 +12 +15 + 6 + 2 +20 +12 + 6 + 9 66 119 75 - 4 0 - 5 - 9 +33 + 7 82 214 118 - 5 + 6 - 5 +14 +73 +42 ♦Figures from 2929 plants. Debits £■ * Dec. 1942 Retail sales 1 Payrolls 1 Employment 290 430 66 317 106 313 203 131 146 141 142 166 138 + 2 + 6 -15 - 7 - 7 - 9 0 - 5 +1 -12 0 - 2 -10 Employment* Factory workers Averages January 1943 and per cent change from year ago Local Business Conditions* Building permits value - 5 0 -10 + 7 - 8 - 6 0 - 1 -24 - 3 +1 + 2 - 6 Hours and Wages HW HH WH VH*H1—— 03 w - cn in I-*O -4 OWcn-J C V A Percentage change— January 1943 from month and year ago 133 181 55 99 45 106 140 100 113 109 97 112 91 Manufacturing ♦Unadjusted for seasonal variation. p—Preliminary. !3-month moving daily average centered at 3rd month. r—Revised. • Payrolls Employment Per cent Per cent Jan. change from Jan. change from 1943 1943 index Dec. Jan. index Dec. Jan. 1942 1942 1942 1942 Jan. Dec. Jan. 1943 1942 1942 Jan. 1943 from Mo. ago Slaughtering, meat packing................ Sugar refining.......................................... Canning and preserving...................... Cigars........................................................ Paper and wood pulp........................... Printing and publishing...................... Shoes......................................................... Leather, goat and kid........................... Paints and varnishes............................. Coke, by-product................................... COAL MINING....................................... Anthracite................................................ Bituminous.............................................. CRUDE OIL.............................................. ELECTRIC POWER—OUTPUT. . . Sales, total............................................... Sales to industries................................. BUILDING CONTRACTS TOTAL AWARDSf................................. Residential!............................................ Nonresidentialf...................................... Public works and utilities!................. Not adjusted + 5 -15 + 5 -15 - 5 + 6 + 5 -13 -27 0 +26 +18 + 1 TOTAL............................ Iron, steel and prod.. . Nonfer. metal prod . . . Transportation equip.. Textiles and clothing.. Textiles........................ Clothing....................... Food products............. Stone, clay and glass.. Lumber products......... Chemicals and prod.. . Leather and products. Paper and printing . . . Printing........................ Others: Cigars and tobacco . . Rubber tires, goods. . Musical instruments. Weekly working time* Hourly earnings* Weekly earnings! Aver Aver Aver age Ch’ge age Ch’ge age Ch’ge hours 43.8 44.9 44.5 47.9 38.9 39.8 36.6 41.3 37.7 43.3 41.5 40.3 41.8 38.8 + 6 $.970 + 5 1.048 + 7 .924 + 2 1.115 .682 + 7 + 8 .707 .618 + 6 + 3 .734 + 2 .857 +11 .663 + 8 .985 + 4 .685 + 2 .839 + 2 .970 +13 $42.03 +11 47.01 +20 41.14 +14 53.40 +12 26.29 +13 28.07 +10 22.70 +10 30.53 + 8 32.39 +11 28.37 + 6 41.12 +12 27.56 + 9 35.34 + 6 37.88 +19 +17 +28 +17 +20 +22 +15 +13 + 11 +23 +16 +16 + 11 + 8 41.1 43.9 45.3 +10 +12 + 4 +14 +17 +27 +25 +31 +32 ♦Figures from 2743 plants. .555 .907 .912 22.77 39.83 41.37 fFigures from 2929 plants. > Distribution and Prices Wholesale trade Unadjusted for seasonal variation Per cent change January 1943 from Month Year ago ago Sales Total of all lines... . Boots and shoes. . Drugs........................ Dry goods................ Electrical supplies. Groceries.................. Hardware................. Jewelry...................... Paper......................... Inventories Total of all lines. ... Dry goods................ Electrical supplies. Groceries.................. Hardware................. Jewelry...................... _Paper......................... + 6 +15 + 8 9 +48 + 2 -18 + 5 -44 0 +21 + 1 +26 - 5 - 7 -18 -37 +12 T -23 -13 -27 -26 -37 -35 - 5 + 4 + 2 + 5 + 2 + 5 +23 - 6 Source: U. S. Department of Commerce. Percent change from Prices Jan. 1943 Month Year ago ago Aug. 1939 Basic commodities (Aug. 1939=100).. . 174 +1 + 6 +74 Wholesale (1926=100)............... 102 +1 + 6 +36 Farm............................ 117 + 3 +16 +92 Food............................ 105 + 1 +12 +57 Other........................... 96 0 + 1 +20 Living costs (1935-1939=100). . . United States............ 121 0 + 8 +22 Philadelphia.............. 120 0 +22 Food.......................... 130 0 +14 +40 Clothing................... 126 0 +10 +27 Rent.......................... 107 0 + 4 Fuels.......................... 105 + 1 + 2 + 9 Housefurnishings. . 122 0 + 4 +22 Other......................... 114 0 + 5 +13 Source: U. S. Bureau of Labor Statistics. Adjusted for seasonal variation Not adjusted Per cent change Indexes: 1935-1939=100 Jan. Dec. Jan. January 1943 Jan. Dec. Jan. from 1943 1942 1942 1943 1942 1942 Mouth Year ago ago RETAIL TRADE Sales Department stores—District................................... Philadelphia.......................... Women's apparel......................................................... Men’s apparel............................................................... Shoe................................................................................. 157p 157 134p 121p 187p 140 138 131 145 146 162 158 128 186 162 +12 +14 + 2 -16 +28 - 3 - 1 + 4 -35 +15 112p 114 116p 110p 142p 262 263 215 242 174 116 116 in 170 123 Inventories Department stores—District................................... Philadelphia.......................... Women’s apparel......................................................... Shoe................................................................................. 148p 147 165p 107p 150 152 148 in 132 127 130 100 - 1 - 3 +12 - 4 +12 +16 +27 + 6 130p 131 144p 96p 137 143 144 103 116 113 113 90 127 126 79 115 190 174 119 129 115 126 126 77 116 166 188 110 116 132 142 149 109 118 179 172 131 127 101 0 + 2 ~ 1 +14 - 8 + 8 +11 -13 -10 -15 -28 - 3 + 6 + 1 - 9 + 1 +13 121 118 74 129 72 200 96 125 116 121 119 76 125 81 203 93 121 141 134 138 103 132 66 196 106 122 102 94 84 193 +12 -51 89 90 186 +15* + 5* +21* 138p 120 +27* 163p 155 114 128 +62* +74* + 8 —53* 39 + 7* 26 + 9 153 82 24 140 FREIGHT-CAR LOADINGS! Total................................................................................. Merchandise and miscellaneous.............................. Merchandise—l.c.l...................................................... Coal................................................................................. Ore................................................................................... Coke................................................................................ Forest products........................................................... Grain and products.................................................... Livestock....................................................................... i MISCELLANEOUS Life insurance salesf..................................................... Hotels—(1934=100) . Business liquidations Check payments r....................................................... ♦From unadjusted data. p—Preliminary. 154 143 r—Revised. 142 24 15 172 fAdjusted series revised. BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Reporting member banks (000,000*8 omitted) Feb. 24, 1943 Assets Commercial loans................. $ 225 Open market paper............. 16 Loans to brokers, etc.......... 28 Other loans to carry secur.. 11 46 Other loans............................. 122 Changes in— Five weeks +$ + _ + year i* -$ 50* 2 - 26 i + i i* t — 3 — 1 5* t Total loans........................... $ 448 +$ 4 -$111 Government securities........ $1066 Obligations fully guar’teed. 69 Other securities..................... 230 +$44 6 +$559 - 34 - 37 Total investments.............. $1365 +$38 +$488 Total loans & investments $1813 Reserve with F. R. Bank. . 433 Cash in vault......................... 29 Balances with other banks. 116 Other assets—net................. 65 +$42 - 11 + 3 + 8 + 2 +$377 + 31 + 3 ** 5 Liabilities Demand deposits, adjusted. $1573 168 U. S. Government deposits. 109 Interbank deposits............... 374 Capital account.................... 12 220 - Jan. 27 Feb. 3 Feb. 10 Feb. 17 Feb. 24 Change in five weeks Sources of funds: Reserve Bank credit extended in district... . Commercial transfers (chiefly interdistrict).. Treasury operations............................................. - 5.3 +15.3 +25.3 +11.3 - 2.4 -32.1 - 4.9 +20.7 - 0.0 + 3.4 +22.2 -16.3 - 4.0 + 6.9 + 7.0 + 0.5 +62.7 -16.1 +$94 - 54 + 3 + +$324 - 20 + 69 ** 1 + 3 Changes in weeks ended— +35.3 -23.2 +15.8 + 9.3 + 9.9 +47.1 Uses of funds: Currency demand................................................. Member bank reserve deposits......................... “Other deposits’’ at Reserve Bank................. Other Federal Reserve accounts...................... + 9.6 +23.1 + 2.3 + 0.3 +12.0 -39.4 + 3.7 + 0.5 +15.0 + 7.3 - 6.7 + 0.2 + + + 3.8 6.7 1.4 0.2 +12.7 - 3.9 + 0.9 + 0.2 +53.1 - 6.2 - 1.2 + 1.4 Total........................................................................ +35.3 -23.2 + 15.8 + 9.3 + 9.9 + 47.1 Federal Reserve Bank of Phila. (Dollar figures in millions) Note circulation. . . . Member bk. deposits U. S. general account Foreign deposits... . Changes in— Feb. 24, 1943 Bills discounted........ $ Industrial advances. *Revised. tNot available. **Reciprocal bank balances now reported net. Philadelphia Federal Reserve District (Millions of dollars) Five weeks 0.6 0 4.5 406.8 +$ 0.2 0 + 0.2 - 35.4 0.3 0 + 1.0 +228.1 -$35.0 + 38.3 - 6.2 - 11.7 - 2.9 - 1.2 + 55.8 4- 2.7% +$228.8 + 285.5 + 79.1 - 70.3 + 6.6 9.6 + 57.2 - 12.1% $411.9 887.5 666.6 11.3 67.5 6.3 1241.1 75.7% One year -$ Member bank reserves (Daily averages; dollar figures in millions) Held Re quired Ex cess Ratio of excess to re quired Phila. banks 1942: Feb. 1-15... 1943: Jan. 1-15... Jan. 16-31... Feb. 1-15... $443 418 425 410 $298 358 357 362 $145 60 68 48 49% 17“ 19“ 13“ Country banks 1942: Feb. 1-15... 1943: Jan. 1-15... Jan. 16-31.. . Feb. 1-15... $213 256 253 252 $143 184 183 185 $70 72 70 67 49% 39“ 38“ 37 “ Page Seven National Summary of Business Conditions INDUSTRIAL PRODUCTION ZOO ISO _ -J_1 / ISO 140 ieo too / z 1936 100 1937 1938 IS39 1940 1941 1942 Federal Reserve monthly index of physical volume of production, adjusted for seasonal variation, 1935-39 average = 100. Latest figures shown are for January 1943. DEPARTMENT STORE AND STOCKS Federal Reserve monthly indexes of value of sales and stocks, adjusted for seasonal vari ation, 1923-25 average =100. Latest figures shown are for January 1943. MEMBER BANK RESERVES AND RELATED ITEMS Wednesday figures. Latest figures shown are for February 17, 1943. EXCESS RESERVES OF MEMBER BANKS Wednesday figures, partly estimated. Latest figures shown are for February 17, 1943. Page Eight Industrial activity rose further in January and the first half of February. Retail sales continued in large volume in January and were at an exceptionally high level early in February. Production. Volume of industrial production showed another marked gain in January reaching a level of 200 per cent of the 1935-1939 average, according to the Board’s adjusted index, compared with 197 in December. The increase reflected largely a growth in activity in the munitions industries, including production of chemicals for war purposes. Activity at shipyards and in aircraft and machinery plants continued to expand sharply. Deliveries of completed merchant ships in January were some what less than in December but were still at the high level of over 1 million deadweight tons. Total iron and steel production rose to the level of last November, but was still slightly below the October peak, and electric steel out yz put, important the 1935-1939 period. Operations at steel mills were near capac as large as in for munitions manufacturing, reached a record level 5 times ity during the first three weeks of February. Nondurable manufactures, as a group, continued to show little change. Production of meats under Federal inspection, except beef, declined sharply from the high level in December. Output of most other foods was maintained; production for military and lend-lease needs, particularly of highly processed foods, rose further and there was a corresponding decline in output of these products for civilians. Newsprint consumption declined in January as a re sult partly of a Federal order restricting newsprint use. Mineral production declined slightly in January, reflecting a small reduc tion in output of crude petroleum. Output at coal and metal mines showed little change. Anthracite production in the first half of January was reduced by an industrial dispute, but for the month of January as a whole, output was only 3 per cent lower than in December. Value of construction contracts awarded, according to figures of the F. W. Dodge Corporation, was much smaller in January than in other recent months but was still slightly higher than a year ago. Reductions occurred in all types of public awards, which now account for most of the total. A decline has been indicated for some time as a result of actions of the War Production Board designed to limit construction activity to projects that are essential. On Oct ober 23, 1942, it had established a committee to review proposals for new con struction; through February 12, work on projects estimated to cost 1.3 billion dollars was stopped either by the War Production Board or by the Government agencies initiating them. Distribution. Distribution of commodities to consumers was in large volume in January and the first half of February. Retail sales of merchandise declined less than seasonally in January and rose sharply in the first half of February when a buying wave developed, particularly in clothing. At department stores, sales increased considerably in the first week of February and then reached an exceptionally high level during the second week, stimulated partly by the announcement of shoe rationing. Freight carloadings declined somewhat less than seasonally in January and the adjusted index increased 1 per cent. Miscellaneous loadings accounted for most of the rise. Substantial increases in loadings of most types of com modities occurred in the first two weeks of February. Commodity Prices. The average level of wholesale commodity prices con tinued to advance in January and the early part of February. Prices of most farm products showed further increases. Maximum wholesale and retail prices were raised for a number of miscellaneous commodities including coal, while reductions were effected in maximum prices for some items like rayon tops and waste. Retail prices of foods continued to rise from mid-December to Mid-Janu ary with increases largely in meats, dairy products, and processed fruits and vegetables. Bank Credit. Excess reserves of member banks declined from an average level of about 2.2 billion dollars in the last half of January to 1.6 billion early in February, but increased somewhat around the middle of the month. Increases in currency in circulation continued to be the major factor responsible for the decline, although substantial fluctuations occurred in Treasury balances and Reserve Bank credit. Most of the decline in excess funds was at banks in New York City and Chicago, where reserves have recently been close to legal minimum requirements. Over the five-week period ending February 17, the currency drain amounted to 520 million dollars, bringing total currency in circulation to 15.8 billion on February 17. Holdings of Government obligations at reporting banks in leading cities outside New York and Chicago increased by 640 million dollars over the fiveweek period ending February 17. At banks in New York and Chicago, hold ings of Government securities declined by 360 million, principally through sales to the Reserve Banks for the purpose of restoring reserves. Government deposits at banks were reduced in the period, while other deposits increased. United States Government Security Prices. Following a rise in the first half of January, prices of United States Government securities have been steady. >
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