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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT MARCH 2., 1936 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Total volume of industrial produc tion increased in January, but, owing to a decline in activity in the auto mobile and allied industries from an exceptionally high level in December, the increase was less than is usual at this season. Production and employment. Total output at factories increased by a smaller amount than is usual in Jan uary, while output at mines showed a seasonal increase. The Board’s combined index of industrial produc tion, which makes allowance for sea sonal changes, declined from 104 per cent of the 1923-1925 average in De cember to 99 per cent in January. This decrease reflected chiefly sharp reductions in output of steel and of automobiles from the high levels reached in December. In the first three weeks of February the average rate of operations at steel mills showed a smaller increase over the January average than is usual, and at auto mobile factories output was estimated to be at a lower level than in Janu ary. Smaller than seasonal increases in activity were reported at textile mills and at shoe factories, while out put of food products was in consider INDUSTRIAL PRODUCTION ably larger volume in January than a Commodity prices. The general level month earlier. of wholesale commodity prices con Factory employment showed a tinued to show little change during small seasonal decrease between the January and the first three weeks of middle of December and the middle February. Prices of cotton textiles, of January. At automobile factories flour, wheat, and silk declined, while the number of workers, which usually prices of hogs, petroleum, coffee, and increases at this season, was unchanged, rubber increased considerably. Re and at textile mills employment de tail prices of foods decreased some clined. Factory payrolls decreased by what during January. more than the usual amount. Bank credit. Excess reserves of Value of construction contracts member banks fluctuated between awarded, as reported by the F. W. January 22 and February 19 near a Dodge Corporation, was smaller in $3,000,000,000 level, changes reflect January than in December. Awards ing principally fluctuations in Treas for publicly-financed projects de ury holdings of cash and deposits with creased from the relatively high Federal reserve banks. December figure, and there was a sea sonal decline in contracts for residen (EMBER BANK CREDIT MUONS or 0CUARS ■ILU0N3 or DOLLARS tial construction. Totol Loons U Distribution. Retail trade was re Adjusted if duced more than seasonally in Janu t ary, reflecting in part the influence Direst Obligations/ 1T Bctorces of " ba"^: of unusually severe weather. Sales by jotbetLoon* department stores, variety stores, and mail-order houses all declined by more '-"n*s uso» than the usual seasonal amount. d 1 Freight-car loadings showed little 0 --- -g. 0 '34 ' 1935 '34 1935 1936 1936 change; loadings of coal increased considerably, while rail shipments of Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934 miscellaneous freight declined. to February 12, 1936. PER CENT 120 FACTORY EMPLOYMENT -- MEMBER BANK RESERVE BALANCES BILLIONS OF DOLLARS BILLIONS OF DOLLARS TOTAL EXCESS RESERVES 1934 Index of physical volume of production, ad justed for seasonal variation, 1923-25 = 100. \ Index of number employed, adjusted for sonal variation, 1923-25 = 100. 1936 Wednesday figures of total member bank re serve balances at Federal Reserve banks, with estimates of required and excess reserves. January 6, 1932 to February 19, 1936. Page One Investments of weekly reporting member banks in leading cities in creased by $300,000,000 in the four weeks ending February 12, and reached the largest amount ever held by these banks, while loans decreased by $130,000,000. Holdings of United States Government obligations in creased by $140,000,000, holdings of obligations guaranteed by the govern ment by $50,000,000, and other securi ties by' $110,000,000. Adjusted demand deposits of re porting member banks, which de clined somewhat from the middle of December to the middle of January, increased by $290,000,000 in the four weeks ending February 12, while United States Government deposits declined by $150,000,000. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial and trade activity in the aggregate has slackened somewhat since the turn of the year, although evidences of seasonal upturn have been apparent in recent weeks. Un usually severe weather conditions pre vailing throughout this district have had an adverse effect on business ac tivity, hampering retail trade, delay ing orders, interfering with the trans portation of goods and slowing up industrial operations generally. Industrial production in January declined to 78 per cent of the 1923-25 average as compared with 80 in the previous month, when allowance is made for the usual seasonal change. In comparison with a year ago, the rate of industrial output was 7 per cent greater, production of coal alone registering a decrease. The value of building contracts awarded for all types of construction declined from December to January but continued substantially larger than a year ago, owing to increases in residential and non-residential construction. A gain in the value of contracts let for one and two-family houses and for com mercial buildings during January as compared with December may be re garded as significant since the trend of activity in these branches of construc tion has been upward since early 1935. Preliminary estimates indicate that in come of farmers from the sale of their products last year was about 16 per cent larger than in the previous year and the trend has been steadily up ward since the low reached in 1932, reflecting largely a similar rise in prices of agricultural commodities. Retail trade sales have continued larger than a year ago during Janu ary and early February. Inclement weather conditions have been a serious drawback, so that largely for this reason the rate of current activity has failed to measure up to the usual sea sonal level prevailing in January and February. Business activity at whole sale on the whole has shown no im portant changes in this period. Sales of new passenger automobiles declined in the month but continued larger than a year ago. Activity of com mercial travelers has increased sub stantially. Freight car loadings have declined since December, despite an increase in the case of coal. Industrial employment and payrolls fell off seasonally from the middle of December to the middle of January, according to reports from twelve im portant branches of industry, trade and services in Pennsylvania. The largest relative decrease occurred in INDUSTRIAL PRODUCTION retail trade. This bank’s general index of employment in January was 106, relative to the 1932 average, or 2 per cent higher than a year ago; the payroll index was 130 or 10 per cent above that in January 1935. In coming reports from manufacturing industries for February indicate sea sonal gains in employment, payrolls and working time as compared with January. Manufacturing. The market for most products manufactured in this district has slackened somewhat since the turn of the year, although lately there has been some seasonal im provement in demand for such manu factures as certain fabricated iron and steel products, cotton and wool goods, shoes, paper, pottery and slate. Com pared with a year ago sales in the ag gregate have continued larger. The volume of unfilled orders, while de clining in the month, also appears to be above that of a year before. Changes in prices for the majority of factory products on the whole have been insignificant since December. The wholesale price index compiled by the Bureau of Labor Statistics for manu factures, including fuel and lighting materials, on February 22 was 79.0 relative to the 1926 average as com- SALES OF ELECTRIC POWER PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT I923-23AVG. = I00 . L COAL MINING 200 TOTAL N/V^ MANUFACTURING A A 175 . 150 <c /vV‘^ ' A-'V*\ k/v-- • : 125 •A r ‘‘A W .. TC INDUSTRIES V IOO i 75 193 I 1932 Two DigitizedPage for FRASER 1933 1934 1935 1936 ADJUSTED FOR SEASONAL VAR ation 1931 1932 1933 1934 1935 1936 pared with 78.9 a month ago, 77.7 a Business Indicators year earlier and 78.7 two years ago. Inventories of finished goods at re Philadelphia Federal Reserve District porting establishments have not shown any important changes in the month Index numbers: percentages of the 1923-1925 average as 100 and as compared with last year. Pur Adjusted indexes allow for the usual Adjusted for seasonal variation Not adjusted chases of raw materials including seasonal change in activity. some of the products to be used in Unadjusted indexes reflect merely the Per cent change further manufacture show increases actual change which may or may not Jan. Nov. Dec. Jan. Jan. 1936 fron Jan. Nov. Dec. Jan. be typical. 1935 1935 1935 1936 1935 1935 ' 1935 1936 in a number of important lines and Month Year seem to be somewhat larger than a ago ago year ago, particularly in the case of Industrial production 73 77 80 78p - 3 + 7 73 79 78 silk and wool fibers, shoes, paper, and Manufacturing—total......................... 77p 69 76 78 75p — 4 + 9 68 78 75 74p Durable goods............................ pottery. Inventories of raw ma 50 62 62 61 p - 0 + 22 Consumers’ goods....................... 86 83 90 84p - 6 + 2 terials in the country, after rising for Metal products............................. 68 59 70 70 — 0 + 19 56 67 67 67 Textile products........................... 85 85 89 8lp — 9 — 5 87 88 nine years reaching a record high in 86 83p Transportation equipment........ 46 62 62 64 + 3 + 39 46 59 62 64 Food products.............................. 1931-33, declined rather sharply in the 64 72 71 73p + 3 + 14 64 72 70 72p Tobacco and products................ 86 79 97 87 — 11 + 10 65 103 70 72 following two years, so that at the be Building materials....................... 23 36 29 24 -16 + 7 36 19 21 27 Chemicals and products............. 100 111 115 }14P — 0 + 14 98 111 113 lllp ginning of 1936 they appear to have Leather and products................. 114 125 137 126p — 8 + 11 118 119 130 131p Paper and printing...................... 78 81 83 been the lowest for that date since 82 - 1 + 5 78 82 84 82 Coal mining....................................... 74 49 70 69p — 2 - 7 52 81 74p 69 Anthracite..................................... 1927-28. The index number of stocks 76 48 71 70p - 1 - 8 82 50 69 75p Bituminous................................... 60 61 65 60p - 8 - 0 67 69 69 69 of these commodities, compiled by the Crude oil............................................ 401 406 415 416 + 0 + 4 385 394 390 399 Electric power Department of Commerce, in Decem Output............................................ 191 197 205 210 + 2 + 10 202 205 219 222 Sales, totalt................................... 186 194 202 207 ber was 154 per cent of the 1923-25 + 2 + 11 191 200 208 213 Sales to industries J...................... 140 145 158 151 —' 4 + 8 136 148 150 147 Employment and wages—Pa. average as compared with 198 a year Factory—’Wage earners................... — 2* + 3* 74 79 79 77 ago, the largest decrease taking place Payrolls............................................ - 3* + 13* 58 68 68 66 Man-hours (1927-28= 100)........ in the inventories of foodstuffs. The - 3* + 18* 57 69 69 67 General (1932=100) Employment................................... high index of almost 215 was in De — 6* + 2* 104 109 113 106 Payrolls............................................ - 5* + 10* 119 131 137 130 cember 1933. Building and real estate Contracts awarded!—total............. 39 53 7l +34 +121 25 The number of factory wage earn 39 56 49 Residential-]-.................................... 21 24 23 — 2 + 113 22 9 23 18 Non-residentialf............................ ers and their earnings decreased be 26 52 73 +41 +232 20 28 47 67 Public works and utilities!......... 112 103 146 +30 + 62 85 115 131 138 Permits for building—-17 cities. . . . tween the middle of December and the 10 7 11 +46 + 72 9 4 5 6 Mortgages recorded—-Philadelphia 10 15 11 -28 - 27 10 10 17 13 middle of January by about the usual Real estate deeds—Philadelphia... 44 51 42 -17 — 6 47 50 39 42 Sheriff deeds (1930= 100)............ _ 2* - 25* 122 107 seasonal proportions but continued 93 91 Other deeds (1930 =100)............ —29* + 14* 74 53 86 61 Writs for Sheriff sales—Phila.......... 892 610 672 641 larger than a year ago. In Pennsyl Distribution — 5 - 28 1026 683 686 738 vania the employment index, relative Retail trade —sales. ................ 70 73 61p -17 + a 45 84 120 50p stocks.................. 62 65 63 66p + 4 + 6 55 75 to the 1923-25 average, was almost 77 60 59p Wholesale trade—sales..................... 77 75 79 79p + i + 2 85 68 88 69p . t stocks.................. 64 67 69 per cent, indicating about the cus 69p — 1 + 7 69 63 65 67p Life insurance sales............................ 146 105 101 111 New passenger auto, registrations . tomary seasonal drop of 2 per cent 83 143 245 112 -54 + 35 45 100 132 60 Hotels—-Occupancy (1934=100) + 19* + 4* 110 108 96 114 from the December level. Compared Income, total (1934=100) + 14* + 6* 118 119 110 125 Freight car loadings—total............. 65 with a year ago, it was 3.5 per cent — 1 + 7 55 62 59 58 Merchandise and miscellaneous . 64 - 2 + 7 63 52 57 55 Coal................................................... higher. The payroll index of 66 de 70 + 7 + 0 61 75 75 69 Business liquidations clined 3.5 per cent in the month but Number................................................ * * Amount of liabilities.......................... was 13 per cent higher than in Janu * * 34 Payment of accounts ary 1935. Check payments................................ 75 81 82 82 ~ 0 + 10 76 87 89 84 Rate of collections (actual) Estimates from the current indexes Retail trade..................................... 29 27 6 + 1 31 32 32 29 Wholesale trade.............................. and the census data show that all 65 70 + 8 + 1 70 69 68 66 States manufacturing industries in Pennsyl Prices—United Wholesale (1926 = 100)................. — 0* + 2* 81 79 81 81 Farm products................................ vania in January employed about — 0* + 1* 78 77 78 78 Foods................................................ — 3* + 5* 80 85 86 83 828,000 wage earners and paid out in Other commodities........................ + 0* + 1* 79 78 79 79 Retail food (1913 = 100)............. - 1* + 7* 126 126 118 128 wages approximately $16,821,000 a Philadelphia.................................. — 1* + 7* 123 131 133 132 Scranton.........................................' week. The average weekly earnings - 1* + 6* 127 129 128 121 in January amounted to about $20.60 % change from which was the highest for that month Jan. Oct. Nov. Dec. Jan. (In millions of dollars) 1935 since 1931. Hourly earnings at the 1935 1935 1935 Month 1936 Year ago ago same time averaged 58 cents per wage and credit earner or the highest for January Banking Federal Reserve Bank Bills discounted............................ since 1930. The actual number of $ 1 $ (a) * (a) S (a) $ (a) Other bills and securities........... 171 184 185 184 184 0 + 8 hours worked by an average wage Member bank reserves............... 217 262 269 266 294 +11 +35 Reserve ratio (per cent)............. 67.2 72.1 70.1 70.5 72.6 earner was 35.5 as compared with + 3 + 8 Reporting member banks Loans to customers..................... 32.8 hours a year ago. $428 $403 $402 $402 $400 - 0 - 7 Other loans and investments... 643 694 698 706 727 + 3 +13 The volume of work done, as meas Total (gross) deposits................. 1,237 1,319 1,300 1,319 1,373 + 4 +n Bankers’ acceptances outstanding 13.0 14.1 13.7 12.3 12.2 — 1 — 6 ured by employee-hours actually worked, registered a drop of 3 per c j . ,. , . , , (a) Less than $500,000 computed from data unadjusted for seasonal variation. p—-Preliminary r—Revised cent in the month but was 18 per cent t 3-month moving daily average centered at 3rd month. J Not included in production index. Page Three OUTPUT OF METAL AND TEXTILE PRODUCTS OUTPUT OF SHOES AND HOSIERY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT SHOES TEXTILES HOSIERY METALS 1933 1934 1935 1936 1931 larger than a year ago, indicating the curring in the case of street cars and continuance of higher operating levels. railroads. Sales of electricity for Output of factory products in this lighting purposes also showed a district declined by a larger volume marked gain during the month, owing than is to be seasonally expected at mainly to residential consumption; the turn of the year. This bank’s in compared with January 1935, they dex number of productive activity, were 11 per cent larger. which is adjusted for the usual sea Coal and other fuels. Production of sonal change, in January dropped to anthracite increased further in Janu 75, relative to the 1923-25 average, as ary and has continued to gain in Feb compared with 78 in December and ruary, indicating sustained demand 76 in November and October. A year largely because of cold weather. ago, this index was 69, or about 9 per Supplies at retail yards and electric cent lower than in January this year. power plants were noticeably lower at Apart from a few midsummer months, the turn of the year than a year ago, the trend of this index has been up but stocks at mines were only slightly ward since the fall of 1934. below and those held by railroads de Most of the manufacturing groups cidedly above last year. registered somewhat less favorable Output of bituminous coal leveled change front December to January off in January, after gaining for three than is ordinarily to be anticipated. months, although there is usually an The industries comprising consumers’ increase of about 9 per cent at this goods, including textile products, time. Shipments, however, continued cigars and leather products, reported the upward movement begun in Au a decline of about 6 per cent in the gust. For six months ending January, month, while the change in the case anthracite production and shipments of durable goods was practically were 10 per cent below a year ago, negligible. Compared with a year whereas bituminous coal output and ago, the durable goods group showed shipments showed an increase. a gain of 22 per cent, owing mainly to sharp gains in metal products and Per cent change from (Output and transportation equipment. Gains over January shipment figures are 1936 Month Year daily averages) a year ago in the consumers’ goods ago ago group amounted to 2 per cent, despite Anthracite a drop in the output of textile products, •4* 9 - 8 Production............ tons 200,700 - 4 +13 Shipments............. tons 202,717 particularly hosiery and silk manufac l.Ollf — 1 —15 Stocks...........1000 tons 0 82.3 — 1 Prices. .. .(1926-100) tures. — 5 + 3 Employment......... No. 100,161 Consumption of electric power by Bituminous + 0 - 0 Production............ tons 327,115 industries in this district declined more 27.817 +» Shipments---- No. cars + 6 98.7 0 + 2 Prices___ (1926 = 100) sharply than usual from December to + 2 — 1 Employment......... No. 130,629 January, while power purchases by mu Coke 98.6 - 2 +18 Prod. .(1923-25=100) nicipalities, and street cars and rail 92.7 + 3 Prices___ (1926 = 100) + 7 roads increased appreciably. Com Gas and fuel oil 119.6* - 4 +20 Prod. .(1923-25 = 100) pared with a year ago, sales for +12 Prices___ (1926 = 100) 65.4 + 2 power purposes were 10 per cent Sources: Bureau of Mines and Bureau of Labor * Estimated. t December. larger, the greatest relative gain oc Statistics. Four Digitized Page for FRASER 1933 1934 1935 1936 Output of by-product coke declined in January, after increasing steadily since July. For the six-month period ending January, production was about 30 per cent above the same interval a year ago. Output of gas and fuel oil fell off somewhat in January, after a sharp advance in the preceding two months. For the period from August to January, production was about 2 per cent above the same period a year before. Building and real estate. Awards of building contracts in this district amounted to approximately $14,000, 000 in January, a decline of 21 per cent from the month before but a sub stantial increase in comparison with a year ago, as shown by the accom panying table. Despite the fact that the January contract total decreased by a somewhat larger percentage than usual, it was the largest for that month since 1930. The average of total awards for the three months end ing in January showed a further sharp increase and reached the highest level in the past four years. In the case of family houses the dollar volume of contract awards registered a marked gain over December, a fact which is of Building contracts Philadelphia Federal Reserve District Per cent change January 1936 From (000’s From omitted) month year ago ago Residential...................... Apts, and hotels......... Family houses............ Non-residential.............. Commercial................. Factories...................... Educational................ All other........... 1,723 131 1,594 8,112 1,495 292 4,226 2,099 +170 - 34 - 90 + 10 + 25 +207 + 4 +417 +186 +122 - 77 - 47 - 7 +1956 +625 + 62 Total buildings.... Public works and utilities................................. 9,837 - 6 +345 4,256 - 42 + 42 Grand total............. 14,093 - 21 +171 Source: F. W. Dodge Corporation. PRIMARY DISTRIBUTION. SALES OF NEW PASSENGER AUTOMOBILES PHILADELPHIA FEDERAL RESERVE DISTRICT REGISTRATIONS PERCENT PERCENT UNITED STATES WHOLESALE DOLLAR SALES PHILADELPHIA____ FEDERAL RESERVE DISTRICT ^SHIPMENTS OF MERCHANDISE AND MISCELLANEOUS COMMODITIES 193 I 1932 1933 1934 Source: Association of American Railroads significance, since the trend in this type of building has been almost stead ily upward since early last year. Awards for commercial buildings and certain unclassified structures, which also have shown a rising tendency for several months, increased sharply in January, while those for public works and utilities declined. Although the real estate situation in general continues to reflect quiet relative to the years before the de pression, current reports indicate that in certain phases of the market there has been more activity in recent months. Renting demand for dwell ings by industrial and lower salaried workers has increased and for the year 1935 as a whole shows an im provement over 1934. This appears to have been especially true in the case of small houses and apartments whose rentals range in price from $30$35 per month. Vacancies in these classes of dwellings have decreased appreciably. The tendency during the past year has been toward higher rather than lower rentals, particu larly in certain instances where a property has been vacated and leased to a new tenant. Sales of houses varying in price from $3,000 to $5,000 also seem to have increased since 1934, and prices have shown some advances during the year. Mortgage funds for new purchases appear to be more readily available than for several years past. Interest rates prevailing in this section have shown less change since 1934 than they have in other parts of the country, although declines here have been apparent chiefly in the case of funds for residential buildings of the one and two-family type. 1935 1936 1931 1932 1933 1934 1935 1936 Source: R. L. Polk Co.; Penna. Motor List Co. The value of retail trade sales was 11 per cent larger in January this year than in the same month of 1935, as indi cated by reports from department, ap parel, shoe and credit stores. The largest relative gains were shown by wearing apparel and credit stores. Combined reports from shoe stores registered a decline of 3 per cent as compared with a year ago. In the case of department stores, the increase over January last year was 7 per cent for Philadelphia stores and 3 per cent for those in other parts of this district. The index number measuring dollar sales of department, apparel, shoe and credit stores combined in January was about 61 per cent of the 1923-25 aver age, after allowance is made for the usual seasonal change and for the varying number of trading days. This was the highest figure for that month since 1933, when this index reached a low of less than 51. In December 1935 the index was about 73, or the highest for that month since 1931.' Inventories of merchandise at retail establishments at the end of January were 6 per cent larger than a year earlier, department stores showing the smallest change. The ratio of collec tions during January to receivables outstanding at the beginning of that month showed little change from a year ago. Dollar sales by wholesale establish ments were 2 per cent larger in Janu ary this year than last, those of jew elry and groceries alone showing a decline. This bank’s seasonally ad justed index of dollar sales by eight important lines in January was over 79 per cent of the 1923-25 average, or the highest for that month since 1933 Distribution, trade and service. when the index reached a low of about 60. There was little change in this in dex ffom December to January. Stocks at wholesale were 7 per cent larger than a year ago, the most pro nounced increases occurring in elec trical supplies, shoes and jewelry; in the case of groceries there was a de cline of 6 per cent. Collections in re lation to outstanding balances were slightly higher than a year ago. Sales of new passenger automo biles, as measured by registrations in this district, declined sharply in Janu ary from the relatively high levels pre vailing in the two preceding months. Compared with a year ago, they were 35 per cent larger and were the larg est of any January since 1930. Ac cording to figures compiled by the Bureau of Foreign and Domestic Commerce retail financing of new au tomobiles in the country declined 12 per cent from December to January. As compared with a year ago, how ever, the dollar volume of new cars financed at retail showed an increase of 61 per cent and was the largest of any January in the past seven years. These unusually favorable compari sons with earlier years continued to reflect in part a change in the date for the introduction of new models, which occurred in the fall of last year. Total freight car loadings in this section, which have shown an upward trend for several months, declined slightly in January, but were about 7 per cent larger than a year earlier. Deliveries of merchandise and mis cellaneous commodities, coke, forest products and ore failed to maintain their customary levels in January, while shipments of coal, grain and livestock showed larger than seasonal Page Five increases. The volume of rail freight consisting largely of manufactures originating in the Philadelphia indus trial area decreased from December to January by a somewhat larger percent age than usual, but showed an in crease of about 10 per cent over a year ago. Hotel business Philadelphia Federal Reserve District Jan., per cent change from Month Year ago ago Room occupancy............. Per cent of capacity used: Jan. 1936............................... 52.1 Dec. 1935.......................... 44 4 Jan. 1935............................... 52.1 Income from: Guest rooms.......................... Food........................ Other sources........................ Total revenue........ + 0 +19 + 0 + 4 +23 +13 + 2 - 0 +10 + 7 +14 + 6 Banking conditions. During January the reserve deposits of member banks averaged 294 millions, the highest in the history of the bank. The excess above legal requirements was 149 millions. The first nineteen days of February show a reduction to 281*4 millions in the average of reserves. In the four weeks ending February 19 reserves declined from 302 to 278 millions, despite the fact that funds were made available to the market through a 38 million excess of Treas ury disbursements over local receipts; this excess was due mainly to the re- Reporting member banks (000,000’s omitted) Feb. 19, 1936 Assets Loans to brokers and deal ers: In New York City......... $ Outside New York City Loans on securities to others (except banks) . . Acceptances and commer cial paper bought........... Loans on real estate... Loans to banks.................... U. S. Government securi- $ Obligations fully guaran teed by U. S. Gov’t.... Other securities................ 9 15 147 Changes in— Four weeks One year 0 -* +S 1 + 22 + 66 — 3 167 — 2 1 1 4 — — 9 16 6 1 429 -S 1 -$ 32 303 + 8 + 2 115 298 + + 6 6 + + 57 33 demption of an unusually large amount of Treasury bills by this bank as fiscal agent. Funds also were sup plied to the banks by a decline of 7 millions in miscellaneous deposits at the reserve bank. Among the factors tending to re duce reserve deposits was an adverse balance of 62 millions in commercial and financial transactions with other sections of the country. An outward transfer of funds derived from the re demption of bills noted above con tributed considerably to this excess of interdistrict payments over receipts. Increased holdings of investments by reporting banks suggest that a sub stantial part also was due to payment for securities purchased outside of the district. Another factor affecting re serves was a rise of 9J^ millions in currency demand; this expansion, sea sonal in character, was about the same as a year ago. Some increase has taken place over the last several months in the amount of loans and commitments approved by the bank to provide established businesses with working capital. The total up to the close of February 19 was $23,200,000, in $17,000,000 of which other banking institutions have agreed to participate; the total com pared with $6,700,000 a year ago. Ad vances by the reserve bank under such approvals aggregated over $10,000,000 on the latest date but, owing to repay ments, the amount outstanding was $6,500,000; reserve bank commitments outstanding amount to about $500,000. Over the last four weeks loans on securities to customers increased 3 millions at the reporting member banks, while those made on the se curity of real estate declined one mil lion and other loans fell off 4 mil lions. The decrease in the latter duplicated that in the corresponding period a year ago. In contrast with a small decrease in total loans, invest ments increased 20 millions, nearly three quarters of which was lodged in direct obligations of the United States or in securities fully guaranteed by it. These purchases together with a de cline of 13 millions in deposits, ad justed to eliminate items in process of collection, were reflected chiefly in a decrease of 28 millions in reserves at the Federal Reserve Bank. Despite the recent decline, deposits, at 1,367 millions, remain 120 millions larger than a year ago. This increase was due mostly to a rise of 156 mil lions in adjusted demand deposits, which analysis shows was caused largely by Government disbursements. There also was an expansion of 35 millions in interbank balances, but other classes of deposits dropped off— 37 millions in time funds and 34 mil lions in deposits to the credit of the United States Government. The rise in deposits, in the face of some repay ments of loans, enabled the reporting banks to increase their holdings of securities from 624 to 716 millions and their reserves at the reserve bank from 144 to 194 millions. Investments compose 62 per cent of total loans and investments, as compared with 57 per cent a year ago and 28 per cent for a similar group of banks in February of 1929. Federal Reserve Bank of Philadelphia (Dollar figures in millions) Bills discounted.... Bills bought.............. Industrial advances. United States securities................... Changes in— Feb. 19, 1936 Four weeks One year *0.5 0.5 6.5 +*0.2 - 0.0 - 0.2 - $0.2 - 0.1 + 2.8 177.1 0 + 10.0 -*o.o +$12.5 + 6.5 + 34.4 -24.4 + 60.1 -26.4 + - 0.2 - 7.0 -53.0 - 2.7% + 3.2 + 1 .3 + 87.5 + 3.3% Total bills and securities............... $184.6 Fed. Res. note circulation............. 268.9 Member bank reserve deposits. . 277.7 U. S.general Treasurer — account 5.0 Foreign bank deposits.................. 4.5 Other deposits.......... 3.1 Total reserves........... 394.7 Reserve ratio............ 70.6% 3.7 MEMBER BANK RESERVES AND RELATED FACTORS Total loans and investReserve with F. R. bank.. Cash in vault....................... Balances with other banks $1,145 +$19 +$ 60 194 — 28 + 50 14 170 - 2 + 7* 85 — 1 4 Liabilities Demand deposits — ad$ U. S. Government deposits Interbank deposits............. Borrowings........................ Other liabilities................... 765 —$15 260 + 3 31 — 7 311 + 6 +$156 - 37 - 34 + 35 18 223 — + + i 9 2 * Figures reported prior to January 8 excluded a certain amount of time balances and balances with private banks; the amount excluded December 31 approximated 10 millions. Page Six Changes in weeks ending— Jan. 29 Feb. 5 Feb. 12 Feb. 19 Changes in four weeks Sources of funds: Reserve bank credit extended in district........................... Commercial transfers (chiefly interdistrict)...................... Treasury operations................................................................ - 0.8 -37.2 +33.3 - 0.2 -11.2 + 3.1 + 0.6 - 5.7 — 1.3 + 2.0 - 7.7 + 3.4 + 1.6 -61 .8 +38.5 Total....................................................................................... — 4.7 - 8.3 — 6.4 - 2.3 -21.7 + + + + — — - 1.7 4.2 5.8 0.0 + 6.6 — 12.6 — 0.4 + 0.0 — - 0.8 0.5 0.9 0.1 + 9.7 -24.4 — 7.0 + 0.0 - 8.3 - 6.4 - 2.3 -21.7 Philadelphia Federal Reserve District (In millions of dollars) Uses of funds: Currency demand.................................................................... Member bank reserve deposits............................................. Unexpended capital funds of reserve bank....................... Total....................................................................................... 2.2 7.1 0.1 0.1 - 4.7 Employment and Payrolls in Pennsylvania RESERVE DEPOSITS OF LICENSED MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS (All figures are rounded from original data) Manufacturing Indexes TOTAL Employment* Payrolls* (Indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and group indexes are weight Jan. change from Jan. change from 1936 1936 ed proportionately.) index Jan. Dec. index Jan. Dec. 1935 1935 1935 1935 EXCESS OVER LEGAL REQUIREMENTS All manufacturing... . Iron, steel and products . Non-ferrous metal prods.. Transportation equip .. . Textiles and clothing.... 1933 1934 1935 Food products.......... Stone, clay and glass.... 1936 Chemicals and products . Leather and products.... Paper and printing........... Others: Cigars and tobacco.... Rubber tires, goods. . . Musical instruments . . CURRENCY DEMAND MILLIONS $ 77 + 3 - 2 66 66 + 9 - 3 106 +17 - 0 56 + 5 + 2 98 — 1 - 3 95 109 + 11 102 68 + 1 -11 54 + 5 - 9 85 — 2 + o 93 + 2 - 3 90 + 2 - 2 86 62 99 46 79 78 86 90 55 38 74 82 84 83 63 4- 0 — 9 74 — 0 - 0 24 -53 -56 47 60 20 PHILADELPHIA FEDERAL RESERVE DISTRICT * Figures from 2224 plants. + 13 — +28 +23 +20 + - 6 - Employehours t Jan.1936—■ per cent change from Jan. 1935 Dec. 1935 3 +18 +29 + +29 +22 + + 2 - 0 — +13 + 7 0 2 1 8 -10 + 8 +17 -12 +15 + 3 + 0 0 - 5 + 8 3 1 3 1 6 7 +13 -12 +19 — 14 + 6 + o + 3 - 3 + 6 + 4 4- 8 -21 + 1 -21 + 2 — 6 +11 — 4 -55 -62 -53 -60 f Figures from 2011 plants. + 40 + 20 0 )U _______ General Index Numbers ~.... — ) 20 XT -40 -60 -80 JAN-1,1432 s 0 1934 193 5 19 3 6 Percentage change— January 1936 from January 1935 City areas* Covering twelve branches of trade and industry Manufacturing Employ ment Wage payments Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Heading................. Scranton............... Trenton................. Wilkes-Barre. . . Williamsport........ Wilmington.......... York....................... + 2 + 2 + 9 — 1 +13 + 4 + 7 -18 + 2 + 2 4* 5 4- 8 + O +n -[-22 +25 +20 +18 + 8 - 7 — 5 +u Allentown............. Altoona.................. Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Reading................. Scranton................ 1 ronton................. Wilkes-Barre.... Williamsport........ Wilmington.......... Y ork....................... — — + — — + — — — - +10 +17 +11 Building permits (value) — 39 — 16 +170 +779 - 75 +166 +132 +216 - 74 + 80 - 51 — 9 +377 Debits trade sales + 9 +13 4-20 +22 +17 + 7 — 1 +20 4- 6 + 8 + 7 + 8 — 4 + 3 + 3 +n +15 4-32 4-12 +21 +29 +25 - 3 -11 + 5 + 3 - 8 — 3 — 8 + i — 7 — 10 — 3 — 1 -12 — 43 — 7 +166 — 89 + 129 + 7 + 149 - 34 — 63 — 69 — 66 +221 — 5 — 4 + 2 — 12 — 3 + 1 — 7 - 5 — 9 — 3 — 2 — 17 — 4 * Area not restricted to the corporate limits of cities given here. Jan. 1936 index General index (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................... 106 121 95 123 49 84 195 88 103 107 103 95 86 Payrolls Per cent change from Jan. 1935 Dec. 1935 + 2 + 3 — 5 — 1 — 3 +13 +12 — 0 + 0 + 4 - 3 + 2 + 0 — 6 — 2 + 3 + 2 — 13 — 9 — 0 — 1 -23 - 1 — 0 - 0 - 3 Jan. 1936 index 130 160 102 189 49 107 174 93 105 101 106 97 88 Per cent change from Jan. 1935 Dec. 1935 + 10 +13 — 5 +13 + 5 +25 +15 + 4 + 4 + 6 + 3 + 6 + 1 — 5 — 3 — 2 — 1 -13 -16 - 3 + 2 -18 - 3 + o + 1 - 2 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUFACTURING AND NON -MANUFACTURING INDUSTRIES AND SERVICES PERCENT + 8 January 1936 from December 1935 2 2 2 5 2 3 2 5 2 5 2 0 6 Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) _ PAYROLLS — 61 — 59 -63 EMPLOYMENT — 59 — 63 —61 —69 —62 1932 1933 1934 1935 1936 Page Seven RETAIL TRADE Index numbers of individual lines of trade and manufacture PERCENT Philadelphia Federal Reserve District PHILADELPHIA FEDERAL RESERVE DISTRICT ADJUSTED Ton SEASON* ALL STORES SALES STOCKS Index numbers: percentages of the 1923-1925 average as 100 Adjusted indexes allow for the usual seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not be typical. Not adjusted Adjusted for seasonal variation Per cent change Jan. Nov. Dec. Jan. Jan. 1936 from Jan. 1935 1935 1935 1935 1936 Month Year ago ago Nov. Dec. 1935 1935 Jan. 1936 Retail trade Sales Total of all stores. . . Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... 55 54 61 73 r 65 41r 70 66 64 88 72 70 73 69 63 102 63 76 61p 57p 70 85 63p 53p 17 + ii — 17 + 6 + 11 + 15 17 + is — 0 - 3 — 30 + 28 45 44 56 65r 51 27 r 84 80 72 107 76 90 120 122 106 154 82 117 50p 47p 65 76 50p 35p Stocks of goods Total of all stores. Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... 62 53 68 90 51 70r 65 54 67 90 56 79 63 52 65 95 56 74 66p 53p 78 98 57 75p + 4 + 2 + 20 + 2 + 1 + 0 55 47 54 77 48 67 r 75 63 77 111 60 89 60 50 66 88 56 69 59p 47p 62 83 54 71P MENS APPAREL STORES Rate of stock turnover January (actual, not indexes). + 6 + 0 + 14 + 9 + 11 + 6 + 7 0.29 0.27 Wholesale trade Sales Total of all lines.... Boots and shoes... Drugs...................... Dry goods.............. Electrical supplies. Groceries................ Hardware............... Jewelry................... Paper....................... Stocks of goods Total of all lines.... Boots and shoes... Drugs..................... Dry goods.......... Electrical supplies. Groceries................ Hardware............... Jewelry.................... Paper...................... 77 53 89 40 75 115 40 37 59 75 45 87 37 67 103 54 52 73 79 35 98 41 62 115 56 47 72 64 21 67 28 116 41 92 68 68 69 59 69 42 43 75 71 63 57 60 45 92 68 67 75 60 79p 60 91 46p 81p 110 42 34p 70 + 1 + 2 68 + 73 + 15 32 7 + 2 92 + 11 + H 33 + 31) + X 50 — 4 — 4 107 — 25 + s 32 — 26 — 8 22 — 3 + 17 62 85 48 90 47 87 112 60 74 77 63 21 103 40 71 74 63 50 59 69 26 117 40 100 74 63 70 59 69p — 40 — 44p 106 67 68 71 p 63 1 5 + 7 + 91 — 2 + 3 + 15 + 42 2 — 6 + l + 8 6 + 23 + 5 + 4 Rate of stock turnover January (actual, not indexes). + o 88 69p 33 37 100 93 43 37p 104 54p 116 103 33 61 96 20p 68 72 65 33 WOMENS APPAREL STORES 67p 41 39 41p 82 101 70 69 64 69 60 61p 57 61 0.45 0.45 SHOE STORES 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............. 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.................... 21 51 52 47 82 11 58 19 117 101 63 40 79 120 108 23 27 20 35 65 56 46 80 17 80 26 153 92 71 48 87 116 135 44 43 27 82 9 49 78 60 82 134 94 68 69 135 83 85 65 48 85 61 85 123 126 82 73 147 100 + 22 — 1 + 4 8 + 1 — 14 — 11 + 4 + 14 — 6 — 9 1 + 10 17 — 14 — 45 — 6 — 5 __ 1* 85 85 — 1 93 +260 26 51 50p — 1 96 86 — 11 + 6 61 r 64 88 86 2 158 147 — 6 117 106p — 9 82 + 10 74 75 80 + 6 3 156 151p 104 99 — 5 34 41 67 66 62 65 63 58 83 84 18 15 81 73 25 24 175 153 89 94 72 79 48 48 105 115 115 96 136 r 116 29 16 39 37 23 24 * Computed from data unadjusted for seasonal variation. Page Eight +101 + 30 + 23 + 23 + 2 + 38 + 26 + 36 + 49 - 13 + 14 + 21 + 46 - 20 + 8 - 33 + 38 + 12 + 16* +964 + 2 + 10 + 8 + 4 + 10 + 13 + 19 + 15 + 11 + 18 20 50 48 50 77 10 57 18 120 103 64 41 75 125 106 16 25 18 77 90 6 48 64 59 82 137 100 68 62 135 83 p—-Preliminary. 35 63 57 43 85 15 74 24 153 93 77 50 99 132 136 43 43 27 89 93 42 52 102 61 86 116 122 82 75 147 96 33 63 58 61 81 14 80 24 161 96 73 51 99 112 134 r 24 38 23 90 r 91 17 51 69 61 89 134 127 73 73 155 100 40 65 59 62 79 14 72 24 178 90 73 49 108 100 114 11 34 21 89 92 64 50p 71 64 86 150 113p 82 72 149p 99 r—Revised. CREDIT 5T0RES
@FedFRASER