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/< _____________ THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT MAY i, 1933 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Production and distribution of com modities, which declined during the latter part of February and the early part of March, increased after the middle of the month. The return flow of currency to the reserve banks, which began with the reopening of banks on March 13, continued in April. Following the announcement by the President on April 19 that the issuance of licenses for the export of gold would be suspended, the value of foreign currencies in terms of the dol lar advanced considerably, and there was increased activity in the com modity and security markets. Pro duction at factories and mines de creased from February to March, contrary to seasonal tendency, and the Board’s seasonally adjusted index de clined from 64 per cent of the 1923-25 average to 60 per cent, compared with a low level of 58 per cent in July 1932. At steel mills there was a de cline in activity from an average of 20 per cent of capacity in February to 15 per cent in March, followed by an increase to more than 20 per cent Production and employment. for the month of April, according to trade reports. In the automobile in dustry where there was also a sharp contraction in output when the banks were closed, there was a rapid increase after the reopening of banks. From February to March, production in the food and cotton textile industries showed little change in volume; ac tivity in the woolen industry declined sharply, and there was a reduction in daily average output at shoe factories. At lumber mills activity increased from the low rate of February, while output of bituminous coal declined by a substantial amount. The volume of factory employment and payrolls showed a considerable de cline from the middle of February to the middle of March. Comprehensive figures on developments since the re opening of banks are not yet available. Value of construction contracts awarded in the first quarter, as re ported by the F. W. Dodge Corpora tion, was smaller than in the last quar ter of 1932 by about one-third. Distribution. Volume of freight car loadings, on a daily average basis, de- INDUSTRIAL PRODUCTION dined from February to March by about 7 per cent, reflecting in large part a substantial reduction in ship ments of coal. Shipments of miscel laneous freight and merchandise, which usually increase at this season, declined in the early part of March and increased after the middle of the month. Department store sales, which had declined sharply in the latter part of February and in the first half of March, increased rapidly after the re opening of banks. Wholesale prices. Wholesale prices of leading commodities fluctuated widely during March and the first three weeks of April. In this period grain prices increased sharply and prices of cotton, hides, non-ferrous metals, pig iron, scrap steel, and sevRESERVE BANK CREDIT AND FACTORS IN CHANGES Gold Stock reslrve: bank credit urn Reserve Bank Credit Index number of industrial production, ad justed for seasonal variation. (1923-1925 aver age =100.) Wednesday figures for 12 Federal reserve banks. Latest figures are for April 19. Wednesday April 19. figures. Latest figures are for eral imported raw materials advanced considerably. During the same period there were reductions in the prices of rayon, petroleum, and certain finished steel products. Currency returned rap idly to the reserve banks and the Treasury following the reopening of the banks, and on April 19 the volume of money in circulation was $1,500, 000,000 less than on March 13, when the peak of demand was reached. Funds arising from the return flow of currency were used to reduce the re serve banks’ holdings of discounted bills by $1,035,000,000 and their hold ings of acceptances by $200,000,000; at the same time member bank re Bank credit. serve balances increased by $390,000, 000. As a result of the decline in Federal Reserve note circulation and an increase in Federal Reserve Bank reserves, chiefly through the redeposit of gold and gold certificates the re serve ratio of the twelve Federal Re serve banks combined advanced from 46.5 per cent on March 13 to 61.5 per cent on April 19. Deposits of reporting member banks in New York increased rapidly after the reopening of the banks, and on April 19 net demand deposits were $620,000,000 larger than on March 15, reflecting in part an increase of $380, 000,000 in bankers’ balances as funds were redeposited by interior banks. Money rates in the open market after a temporary advance in the early part of March, declined rapidly, but were still somewhat higher than early in February. By April 21 rates on prime commercial paper had declined from A1/? per cent to a range of 22]/ per cent; rates on 90-day bank ers’ acceptances from 3$4 per cent to J4 of one per cent, and rates on re newals of call loans on the stock ex change from 5 per cent to one per cent. On April 7 the discount rate of the Federal Reserve Bank of New York was reduced from 3yi to 3 per cent. The bank’s buying rate on 90-day bankers’ acceptances was reduced from 3J4 per cent on March 13 to 2 per cent on March 22. Business and Banking Conditions in the Philadelphia Federal Reserve District General business conditions in March reflected severe interruption in the production and distribution of com modities by the closing of banks in the early part of the month, but sub sequently the situation showed some improvement, particularly between the middle of March and the middle of April. There followed increased in dustrial buying of goods partly for seasonal requirements which had been delayed and partly under the influence of advancing prices. Some expansion in plant operations in the first half of April is indicated by incomplete figures on employment and wage earn ings which had shown extraordinary decreases in March. In the case of mercantile trade, retail sales in March declined by more than the usual amount, but in the first two weeks of April they increased sharply because of Easter buying. Other industrial and trade indicators likewise reflected some change for the better in early April, following unusual curtailment of activity in the preceding month. Industrial production Philadelphia Federal Reserve District 1928.................. 1929.................. 1930.................. 1931.................. 1932.................. 1933.................. Index number*, 1923-25=100 Jan. Feb. Mar. 97.4 102.2 102.4 78.9 68.2 55.7 101.9 107.5 103.7 82.2 67.4 58.0 98.5 105.5 100.5 80.8 63.7 54.5 Per cent: first quarter com pared with previous year - 6.0 + 5.8 - 2.8 -21.1 -17.6 — 15.5 * Adjusted for the usual seasonal variation. Page Two The table shows the trend in indus trial production, comprising the out put of factory products and coal. farm products as foods and grains. Collections since the middle of last month have been in smaller amounts than a month earlier and in the same period last year. The stocks of finished commodities at manufacturing plants indicate fur ther declines with the exception of those industries which are producing for seasonal requirements. While there have been numerous reports showing additions to inventories of raw materials, it appears that for the manufacturing industry as a whole they continue at a low level relative to previous months and recent years. Factory employment in this district showed a decline of almost 7 per cent and payrolls 8 per cent from the mid- Manufacturing. Manufacturing ac tivity showed improvement between the middle of March and the middle of April. In the first two weeks of March there was a considerable inter ruption, brought about by the bank holiday, in the seasonal progress started in February, resulting in a loss of orders for goods. But in the four weeks following the reopening of banks, a large portion of the can celled orders was regained, so that up to about the middle of April the total volume of unfilled orders was rather steadily on the increase. In the latter part of April signs of hesitation in several important industries have MANUFACTURING AND ELECTRIC POWER been noticeable PHILADELPHIA FEDERAL RESERVE DISTRICT with respect to 1923 PERCENT future commit ments. .N ELECTRIC P0WER 175 . / ! Co mmod ity USED BY IN DUSTRIES rt <n • ; * j > / prices, particu » A *. .♦•Sr--------- t 150 larly staples, have V'V* "vVvA *\A.<- \ shown consider *\a-------v\ /-1 125 able strength, ad W *\ vancing since IOO early March MANUFACTUF ’ above the low ACTIV TY 75 level for this year. The sharp 50 est rise occurred in quotations for ADJUSTED FOP SEASONAL VARIATI0N5 25 Ur |928 1929 1930 1931 1932 1933 textiles, certain metals, and such die of February to the middle of March, as compared with the decrease of over 4 per cent in employment and less than 8 per cent in wage payments in the manufacturing industry for the country as a whole. These decreases were unusual and reflected largely the influence of the banking crisis in early March which was included in the pay roll period covered by the reports. Early returns for the first half of April show gains, especially in two such important groups as textile and metal products. Output of factory products in this district was about 6 per cent smaller in March than in February as against a drop of 7 per cent for the country; usually the month of March shows sea sonal gains. This bank’s index of manufacturing activity, which is ad justed for the number of working days and for seasonal changes, in March reached about S3 per cent of the 1923-25 average, which was the lowest level in the past ten years. The metal industry showed a con siderable expansion in the first three weeks of April, following an almost steady decline since the end of last year. Several of the textile branches, particularly cotton and knit goods in dustries, also have shown an upturn in their rate of operation, while silk and wool products reflect a mixed condition, although they, too, report some improvement about the middle of April. Chemical and paper and printing industries show little change, and in March the decline in output was more than seasonal. Production of such building ma terials as cement and lumber products showed more than seasonal increases in March, although the current level of operation continues low when com pared to other years. This improve ment reflects increased demand from the building industry, especially the industrial and residential branches as indicated by the figures in early April. Among the individual industries the most noticeable increases during March occurred in production of steel castings, shoes, petroleum products, and cement. Nevertheless, adjusted indexes of most of the other individual industries showed unusual decreases, offsetting more than seasonal gains that we reported for February. Productive activity in the majority of individual lines covered by our in Business Indicators Philadelphia Federal Reserve District Index numbers expressed in percentages of 1923-1925 average, which is taken as 100 “Adjusted” index numbers make allowance for the usual seasonal Adjusted for seasonal variation uneven distribution of business between the months of the year. “Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Not adjusted Percentage comparison Mar. 1932 Feb. 1933 Mar 1933 with Mar. 1933 Month ago 3 months Mar. 1932 1933 with 3 months 1932 Year ago Feb. 1933 Mar. 1933 Productive activity Manufacturing—total................... Metal products.................... 1 extile products......................... Transportation equipment ... . Food products............................ Tobacco and products.............. Building materials..................... Chemicals and related products Leather and products............... Paper and printing.................... Electric power output.............. Elec. pwr. used by industries.. 63.0 56.1 53. Op 39.1 27.7 25.8 69.6 73.7 68.3p 50.1 31.6 24.2 71.4 66.2 63.9p 73.8 81 .4 70.4 32.5 16.6 16.7 88.8 85.4 83.3p 114.1 108.3 110.4p 89.5 78.2 75.6 184.3 159.8 166.0 119.6 114.8 104.8 - 5.5 - 6.9 - 7.3 -23.4 - 3.5 -13.5 + 0.6 - 2.5 + 1.9 - 3.3 + 3.9 - 8.7 -15.9 -34.0 - 1.9 -51.7 -10.5 - 4.6 -48.6 - 6.2 - 3.2 -15.5 - 9.9 -12.4 -52.4 - 9.5 - 1.3 -15.8 -11.5 -11.6 63.6 57.3 53. Op 39.7 23.0 26.2 72.6 79.8 71.8p 53.2 31.9 25.5' 71.4 63.7p 68.1 68.8 64.9* 28.1 14.4 14.8 89.1 84.8 83.6p 117.1 115.2 113.op 91.3 78.2 77.1 188.0 169.4 169.3 113.6 113.7 99.6 77.1 61 .8r 71.8p + 16.2 81.0 64.0 76. Op +18.8 54 .Or 48.9r 46.6p - 4.7 - 6.9 - 6.2 -13.7 - 0.1 0.0 - 0.4 65.3 65.9 60.8p 67.0 68.0 63. Op 55. lr 53.3r 47.5p 36.7 27.5 7.6 41.0 24.8 11.0 8.7 18.7 16.9 10.0 2.8 20.1 -31.9 - 9.1 -67.8 + 7.5 -54.0 -63.6 -63.2 -51.0 -30.5 -58.9 -36.8 -50.3 34.9 24.2 9.6 42 6 20 1 7.9 6.7 20 2 16 1 8.8 3.5 20 9 57.0 53.7 30.5 -43.2 -46.5 -23.9 57.0 53.7 30.5 — 10 9* 104.3 158! 7 4+3 42.6p 50! 3 57.2 Factory employment Penna......... Coal mining................................... Anthracite.................................... Bituminous.................................. -17.7 -38.2 - 2.6 -47.1 -10.1 7 0* Building and real estate Contracts awarded%—total......... Contracts awarded %—residential Permits for building...................... Mortgages recorded in Phila. . . . Real estate deeds recorded in Philadelphia............................ Exclusive of Sheriff deeds (1930 = 100)............................. Sheriff deeds (1930 = 100)........ — 12 3* -74 0* Distribution Retail trade—sales...................... 64.0 Retail trade—stocks . . . 66.9 Wholesale trade—sales........... 62.5 Wholesale trade—stocks............ 69.0 Freight car loadings (Allegheny district)......................................... 58.8 Life insurance sales... . 108.4 New passenger auto registrations 46.0 48.8 53.8 56.1 57.8 47. Ip 52.9p 53.5* 56 7 — — 3.5 1 7 4.6 19 -26.4 -27.2 62.1 40.1 -14.4 -17.8 -15.9 58.7 69.6 5+3 57.6 50.4 95.9 57.3 45.7 80.2 37.9 - 9.3 -16.4 -33.9 -22.3 -26.0 -17.6 -19.2 55.9 47.4 -21.4 120.3 110.3 -21.8 51.5 42.4 43.4 89.0 42.4 Business liquidations Number..................... Amount of liabilities...................... —37.7* -34.9* —44 ^4* 274 19 287 ^3 178.9 Payment of accounts Rate of collections (actual, not indexes) Retail trade............................... Wholesale trade.......................... 6111 + 3 6* -11.3* (000,000’s omitted in dollar figures) 52.3 54.2 Per cent change from Mar. 1932 Dec. 1932 Jan. 1933 Feb. 1933 Mar. 1933 All member banks—net demand and time deposits...................... $1,983 $1,980 $1,987 $1,963 $1,845 10.4 Month ago Year ago Banking and credit Bankers’ acceptances outstand ing .................................................. 15.2 12.3 11.1 10.4 Federal Reserve Bank Bills discounted.......................... Other bills and securities......... Reserve ratio............................... 97 71 64.9% 51 143 57.3% 47 140 58.2% 54 142 57.0% * Computed from data unadjusted for seasonal variation, t 3-month moving daily average. - 6.0 7.0 31.6 131 +142.6 140 - 1.4 43.4% - 23.9 + 35.1 + 97.2 - 33.1 p—Preliminary, r—Revised. Page Three BUILDING CONTRACTS REAL ESTATE-PHILADELPHIA PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT SHERIFF DEEDS . RECORDED TOTAL \ • RESIDENTIAL CONVEYANCES EXCLUSIVE OF SHERIFF SALES THREE-MONTHS MOVING AVERAGE ADJUSTED FOR SEASONAL VARIATIONS 1928 1929 1930 1931 Source: F. W. Dodge Corporation dexes was substantially smaller in the first quarter of this year than in past years, although the rate of decline since 1931 has been narrowing. The general index number, combining forty-five manufacturing industries, was nearly 18 per cent lower this year than last. The volume of electric power pro duced in March was about the same as in February, when computed on a daily basis but, when adjusted for sea sonal variation, it reflected an im provement of almost 4 per cent. Sales to industry, a principal consumer of electrical energy, decreased more than usual. Total sales for all purposes were about 7 per cent less in March than in February, but in the first part of April consumption of electricity ap pears to have turned upward. Construc tion and contracting activity increased in Pennsylvania from the middle of February to the middle of March, as indicated by reports from 1400 con tracting firms which showed gains of nearly 7 per cent in employment and 8 per cent in payrolls; operating time increased 9 per cent in this period, the largest gain being shown in the construction of streets and highways. Increased activity in building opera tions, however, was confined to the Philadelphia area, where gains in em ployment, payrolls and working time were sufficiently large to more than offset declines in other sections of the state. Aggregate awards of building con tracts showed a further decline from February to March, contrary to sea Building and real estate. Page Four 1932 1933 1930 1931 1932 1933 Source: Philadelphia Real Estate Board sonal expectations. Contracts let for buildings other than dwellings were in substantially smaller volume than during February, while awards for residences showed a gain of 8 per cent in March as compared with an esti mated seasonal increase of nearly 38 per cent. The average of total awards for the three months from January through March was 54 per cent lower than a year ago. In early April total awards for new construction showed a substantial gain. Estimated dollar volume of pro posed building under permits issued in 17 cities of this district declined sharply from February to March, reaching the lowest level in recent years. Comparative figures for the three months ended March 31 showed a decrease of nearly 37 per cent from the corresponding period of 1932. As in the case of other commercial transactions, the real estate market re flected complications brought about partly by the bank holiday. Ordinary conveyances in Philadelphia declined more sharply from February to March than in the previous three years. Pur suant to the legislative resolution and the court orders, the public sale of real estate property was postponed until the first week of April. In Philadel phia, for instance, about 1650 writs for public sale were held off; combin ing the March and April figures, there were approximately 2550 writs calling for public sales in April. The number of court orders for Sheriff sales in Philadelphia in May amounted to 1918, the largest issued in any month since September 1932. Coal. Demand for anthracite has de clined somewhat since the middle of last month, reflecting partly seasonal influences. Colliery output showed an unusually small decline from Febru ary to March, but was curtailed rather sharply in early April. Shipments also declined during March and were in smaller volume than in the same month last year. Comparative figures for three months indicate that produc tion this year was in about the same volume as the first quarter of 1932, while carload shipments in this period were slightly larger than those of the year before. Wholesale prices of an thracite declined fractionally from February to March and were about 2 per cent lower than in March of last year. - The market for Pennsylvania bi tuminous coal has been unusually quiet, owing mainly to the light de mand from industry. Colliery output declined in March by more than the usual amount, and was in substan tially smaller volume than a year earlier. In the first fortnight of April production was reduced further. Ship ments of soft coal fell off sharply during March and were the smallest of any month since August of last year. First quarter shipments showed a marked decline from the corre sponding period of 1932, while pro duction changed little. Wholesale prices of bituminous coal throughout the country averaged somewhat lower in March than in February and were 5 per cent below the level of a year ago. Agriculture. Spring farm activity has been delayed somewhat as a re- FREIGHT CAR LOADINGS RETAIL TRADE ALLEGHENY DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT MERCHANDISE AND / MISCELLANEOUS SALES (in dollars) TOTAL STOCKS (in dollars) ADJUSTED TOR SEASONAL VARIATIONS 1928 1929 1930 1931 1932 1933 1928 1929 1930 1931 1932 1933 Source: American Railway Association suit of the excessive rains of recent weeks, which interfered with plowing and other seasonal operations. Ow ing to severe freezing and thawing during the late winter months, damage to grass lands was reported from some sections of Pennsylvania, and as a re sult, their condition on April 1 was below the estimated normal for that date. Winter grains, including rye and wheat, also were damaged by soil heaving. The outlook for orchard fruits has been generally favorable; early estimates indicate that peaches are expected to be a good crop, while up to April 1 practically no damage had been reported to apples. Grain stocks on farms in this dis trict on April 1 showed a marked re duction as compared with 1932 and, with the exception of corn, were the smallest for that date in the past three years. Cold storage holdings of but ter and eggs have increased in this section since March 1, while those of poultry and cheese have declined; as compared with last year stocks of poultry alone showed a substantial de crease. Receipts of milk and cream at Philadelphia increased during March and early April but were in smaller volume than a year ago. Wholesale prices of farm products, after declining steadily for five months, increased over 4 per cent from February to March and showed fur ther advances in April. Substantially higher prices for grains, especially wheat, accounted for a large part of this increase, although prices of live stock and poultry products also ad vanced in this period. Retail sales of depart ment, apparel, shoe and credit stores combined were 6 per cent larger in March than in February, but this gain failed to measure up to the usual seasonal rate by less than 4 per cent, which in part was due to unfavorable developments in banking. In the first two weeks of April sales increased considerably, owing to the spring holiday activity. Retail sales were about 31 per cent less in March this year than last, the sharpest decreases occurring in sales of apparel, shoe and credit stores. In making comparisons with a year ago, allowance should be made for the fact that the date of Easter last year was very early (March 27) while it was late this year (April 16), and that March sales this year included a much smaller part of holiday buying than they did last year. Moreover,. sales in the first two weeks of the month were severely affected by the closing of banks. Wholesale and jobbing trade has been rather slack, although lately there has been some seasonal im provement. Sales of eight leading lines in March were 2 per cent smaller than in February; ordinarily they should show a gain of about 3 per cent. Compared with a year ago sales were 14 per cent less, reflecting to some extent lower prices, and in the first quarter this year they were al most 16 per cent smaller than last year. While inventories at retail showed seasonal gains in March, stocks held by both retail and wholesale estab lishments were about 2 per cent Distribution. smaller than in February when ad justment is made for normal seasonal changes and were from 18 to 21 per cent less than a year ago. The rate of stock turnover in retail trade de clined 9 per cent, while wholesale showed practically no change in the first quarter this year as compared with the same period last year. Set tlements of retail accounts have slowed down further while those in wholesale trade showed more improve ment during March ; in both instances, however, collections were at a less rapid rate than a year ago. Shipments of commodities by rail road freight and by truck were in smaller volume in March than in February. Usually loadings of fin ished and semi-manufactured mer chandise increase in this period, but this year they declined just as did the movement of heavier commodities such as coal. Total shipments have continued about 20 per cent under last year’s volume. Other indicators bearing on the dis tribution of commodities and services also show further decreases, reflect ing largely the closing of banks. Sales of passenger automobiles, for instance, normally show a substantial increase in March, but this year figures failed to show any gain over February. In the case of life insurance sales, the decrease was materially greater than it usually is, so that the adjusted in dex declined 16 per cent. Banking conditions. During the past month money has continued to return from circulation, borrowings from the reserve bank have been sharply re Page Five COMMERCIAL FAILURES CHECK PAYMENTS AND PRICES PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS Of DOLLARS PERCENT NUMBER LIABILITIES PHILADELPHIA FEDERAL RESERVE DISTRICT UNITED STATES NUMBER WHOLESALE PRICES 1928 1929 1930 1931 1932 1928 1933 Page Six 1930 1931 1932 1933 Source: Dun & Bradstreet, Inc. Source: United States Bureau of Labor Statistics for prices duced, and the reserve ratio of this bank has advanced. The return flow of currency in this district totaled 31 millions in the four weeks ended April 19, raising to 79 millions the aggregate inflow since March 13. This offsets earlier in creases as far back as the middle of February. The total of gold and gold certificates received by the bank since March 6 amounts to nearly 29 millions. In addition to the return of cur rency, funds at the disposal of the member banks were augmented dur ing the last four weeks by a favorable balance of 12 millions in the settle ments of commercial and financial transactions with other districts, and by large Treasury disbursements. The excess of Treasury disbursements within the district over amounts with drawn from banks and other local re ceipts was about 23 millions; this was further increased by issues of national bank notes of about 4 millions. With these funds at their disposal, the banks reduced their borrowings at the reserve bank from 123 millions on March 22 to 53 millions on April 19, the lowest point in any weekly state ment since February 15. This bank’s holdings of United States securities increased 9 millions, while its holdings of purchased bills declined more than 4 millions. The reserve ratio of the bank rose from 44.6 to 57.7 per cent. Total de posits did not change materially, but there was a large decline in federal reserve note circulation and a sub stantial increase in cash reserves. Loans to customers of reporting 1929 . Deposits All member banks (Daily net averages; 000,000’s omitted) Demand Time Totals 1933—January............. February........... March................ 1932—March................ $968 955 876 975 $1,019 1,008 969 1,008 $1,987 1,963 1,845 1,983 (In millions of dollars) member banks declined, contrasting with a period of comparative stability during February and the first part of March, and their investments also de creased. Nevertheless, there was a rise in demand and time deposits which much more than balanced a decline in government deposits. The reporting banks greatly reduced their borrow ings from this bank, and amounts due from banks increased much more than the rise in amounts due to banks. Average demand and time deposits of all member banks declined from 1,963 millions in February to 1,845 millions in March. Of the March total, a little over 8 per cent was held by banks that had not been licensed to resume normal operations. Between March 22 and April 20 eight member banks were licensed to operate without restrictions other than those applying to all banks under the Executive Order of the President; up to April 20, 589 of the 687 member banks in the district had received this authorization. Acceptances of banks in this dis trict scarcely changed in amount dur ing March, although the national total decreased nearly 5 per cent; the dis trict, however, continues to show a greater decline from a year ago. De Acceptances based on— Imports................................. Exports................................. Domestic shipments.......... Warehouse credits............. To create dollar exchange. Goods stored in or shipped between foreign countries.................................... Total......................... Feb. 28, 1933 Feb. 28, 1932 Feb. 28, 1930 4.1 1.4 1.2 2.0 0 6.4 0.8 1.9 3.0 0.5 12.5 2.4 2.4 3.4 0.5 1.7 3.3 5.1 10.4 15.9 26.3 tailed local figures for February 28 show that export acceptances were in larger volume than a year earlier, but that bills covering other types of transactions had decreased materially. In the table above comparison also is made with the figures of February 1930, when the aggregate of accept ances issued in this district reached its highest point. Changes in— Federal Reserve Philadelphia (Dollar figures in millions) April 19, 1933 Four weeks One year -$70.1 - 4.4 -$16.7 + 2.9 + 9.0 0 + 52.7 - 1.0 $197.1 -$65.5 +$37.9 256.0 - 30.0 + 4.7 + 4.7 + 4.7 112.3 + 1.5 - 4.6 1.1 - 2.1 - 1.0 1.1 - 0.4 - 3.5 Bills discounted. . . $ 53.2 Bills bought............ 6.3 United States secu rities ................. 137.1 Other securities___ 0.5 Total bills and securities........ Federal reserve note circulation Federal res. bank note circulation Member bank re serve deposits. Government de posits ................ Foreign bank de posits ................ Special deposits— Member and non member banks Cash reserves......... Reserve ratio.......... 5.5 + 7.0 7.0 + 2.1 - 30.2 + 36.8 218.2 57.7% + 13.1% - 8.7% CURRENCY DEMAND Employment March 1933 PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS Employment and wages in Pennsylvania Per cent change since Mar.* index Mar. 1932 1930 1932 % 140 -m J - _-a_...., __ __ _ A d 120 1 MEMBER BANK’S ^ ii 100 80 60 40 BILLS DISCOL NTED 20 0 ... I... 1... 1.... 1...!.... 1|| |. l-lJ-..,!.... 1.. .1....1... 1...1.... 1.. 1 . 1.... 1 Percentage change—March 1933 from March 1932 Allentown.................................... Altoona....................................... Harrisburg................................. Johnstown...................... Lancaster............................ Philadelphia.............................. Reading................................... Scranton.................................. Trenton...................................... Wilkes-Barre.............................. Williamsport........... Wilmington................................. Y ork.................................. Employ ment Wage payments -18.6 -10.6 -27.8 -30.0 -22.5 -14.8 -18.6 - 2.9 -16.8 - 7.5 -27.4 -10.1 — 4.0 -34.3 -34.5 -40.0 -36.1 -40.4 -28.2 -43.5 -19.0 -28.4 -27.1 -52.9 -23.2 -27.8 - 61.0 - 44.7 - 76.3 - 49.3 - 96.4 - 60.2 - 94.0 - 54.9 — 51.3 +223.4 - 4.8 - 60.1 - 4.4 -16.9 -17.4 - 4.0 -11.2 - 3.3 - 5.6 -11.9 - 1.2 -20.8 + 0.4 - 4.3 - 4.7 - 2.9 -19.4 -14.0 + 5.5 -20.7 - 7.0 - 7.8 -15.6 - 4.0 -31.3 - 3.9 . - 8.4 -13.3 .- 92.7 - 52.2 - 34.4 +125.6 + 25.0 + 7.4 - 61 .6 - 48.3 +140.0 +228.5 - 39.8 - 10.3 - 90.7 * Area not restricted to the corporate limits of cities given here. -19.6 - 7.0 30.0 -36.4 - 8.3 -23.8 21.6 -39.5 35.3 40.4 45.4 64.4 69.2 65.8 44.4 48.8 58.7 28.9 54.0 51.1 - 7.0 - 5.3 — 19 8 -25.0 -15.5. -18.4 -11.3 + 12.1 -24.2 -27.1 -24.7 -17.9 -16.9 -11.0 + - 19.9 26.4 26.7 38.6 29.7 16.1 21.9 27.6 15.0 27.0 27.8 -38.8 -27.9 -40.5 -23.1 - 2.3 —44.9 -51.2 -41.6 -21.9 -37 8 -19.9 -15.1 +23.0 - 6.5 -13.9 - 4.7 - 15.4 -12.4 + 14.5 -14.6 - 1.4 29.9p 28.3 27.7 15.0 56.4 29.1 -10.7 + 5.6 -36.6 -11.2 + 6.6 - 4.3 13. Ip 7.9 12.1 5.9 29.1 32.5 -66.5 -34.2 -57.7 -29.9 -13.6 -24.8 -23.8 -61.5 -76.8 — 56.9 -39.4 —34.5 + 5.3 -57.8 -23.4 + 3.2 - 6.3 44.7 31.1 29.9 47.5 43.4 20.0 39.2 63.8 41.8 44.8 63.2 59.4 -31 .7 —40 0 -34.9 —26 4 -37.7 -46.7 + 7.7 -36.3 -25.6 -21.3 -16.3 -20.5 -14.5 — 14.6 -30.3 -30.5 -21.7 -30.9 -45.0 8.2 2.4 8.1 8.6 1.5 1.6 6.2 5.3 0.3 9.8 1.5 - 9.8 -12.1 - 9.9 -19.9 -11.1 - 5.7 + 0.6 - 1.1 - 0.4 -13.2 -18.5 Foods and tobacco.................... Bread and bakery products Confectionery........................ Ice cream................................ Meat packing......................... Cigars and tobacco............... 94.8 83.6 72.2 94.8 79.1 -10.9 - 4.0 -11.9 -13.4 + 0.4 -15.6 + 0.4 - 0.6 + 2.1 - 0.5 -13.1 61.7 72.9 62.4 55.0 62.8 48.9 Stone, clay and glass products Brick, tile and pottery........ Cement.................................... Glass......................................... 37.6 39.7 26.9 59.8 -29.7 - 9.8 15.8 -45.3 -29.7 -40.9 -12.2 -11.6 - 7.6 - 9.7 13.8 10.3 36.3 -46.9 -59.3 -22.3 Lumber products....................... Lumber and planing mills.. Furniture...................... Wooden boxes........................ 35.7 16.9 39.3 54.8 -25.5 -47.7 -23.4 - 5.5 + 1.7 17.5 8.2 18.1 30.6 —46.6 - 5.9 -65.0 -46.3 -27.5 + 1.2 - 8.1 61.0 -10.0 - 3.0 42.7 3.2 19.6 1.9 37.8 7.2 56.7 2.2 107.1 -15.6 -35.1 -24.4 -21.3 - 1.9 - 0.9 - 5.3 -20.8 - 5.8 + 1.1 - 3.1 + 0.8 - 4.8 -16.3 - 2.1 - 8.4 - 1.7 86.0 - 5.8 + 2.4 + 1.3 + 1.5 -25 5 - + + - 1.1 58.8 —34 2 Leather and rubber products. 90.0 Leather tanning.................... 87.1 Shoes......................................... 111.1 Leather products, other... . 67.6 Rubber tires and goods.... 73.6 3.8 3.2 2.0 4.7 80.2 53.8 43.6 -22.3 -19.7 -20.0 -23.0 -37.9 Paper and printing.................... Paper and wood pulp.......... Paper boxes and bags.......... Printing and publishing___ 77.7 -11.0 - 2.0 68.5 58.9 83.5 - 9.2 -17.2 -11.2 - 0.6 - 3.0 - 2.3 61.0 42.7 46.8 69.8 -26.6 -32.9 —28.8 -24.2 53.1 -25.9 - 7.1 — 2.5 40.9 -20.3 —27 8 +10.4 +15.2 + 7.6 -24.0 +40.2 + 5.3 + 3.3 +16.8 + 4.7 +23.8 -11.6 2.0 -12.6 Retail trade sales —21 6 - -16.7 -17.9 - 9.9 -27.7 -20.2 - 6.5 -13.7 - 4.4 - 2.9 - 0.4 -10.9 0.9 —28 8 —31 0 — 17 4 -13.0 Textile products........................ 73.7 Cotton goods.......................... 50.3 Woolens and worsteds......... 49.9 Silk goods................................ 74.1 Textile dyeing and finishing 60.8 Carpets and rugs.................. 43.0 Hats.......................................... 54.6 Hosiery.................................... 100.2 Knit goods, other.................. 76.3 Men’s clothing....................... 74.4 Women’s clothing................. 110.2 Shirts and furnishings......... 102.6 + + + March 1933 from February 1933 Allentown... Altoona........ Harrisburg. . Johnstown. . Lancaster. . . Philadelphia. Reading. . . . Scranton.... Trenton. . . . Wilkes-Barre Williamsport Wilmington. York............. 54.5 Chemical products.................... 79.3 - 1.6 Chemicals and drugs........... 55.0 - - 9.8 Coke..................................... 53.7 -13.7 Explosives............................. 63.2 - 7.5 Paints and varnishes........... 92.8 + 7.2 Petroleum refining................ 119.9 + 3.8 City areas* Building permits (value) Feb. 1933 44.9 Transportation equipment.. . Automobiles............................ Auto, bodies and parts.... Locomotives and cars.......... Railroad repair shops.......... Shipbuilding........................... FEDERAL RESERVE BANK OF PHILADELPHIA Mar. 1932 Metal products.......................... 933 MILLIONS Feb. 1933 Per change Mar.* index All manufacturing industries (51)....................................... Steel wks. and rolling mills. Iron and steel forgings........ Structural iron work............ Steam and hot wtr. htg. app. Stoves and furnaces............. h oundries................................ Machinery and parts........... Electrical apparatus............. Engines and pumps............. Hardware and tools. . . Brass and bronze products. 193 1 Payrolls March 1933 Anthracite mining................... Bituminous coal mining.......... Banking, insurance and real estate ........................ Canning and preserving.......... Construction and contracting Hotels............................ Laundries.............................. Dyeing and cleaning................ Crude petroleum.......... Public utilities........ Quarrying and mining............. Retail trade. . . Wholesale trade................ * 1923 1925 average = 100. 4.8 4.7 1.3 8.2 8.2 -20.9 -18.5 -27.1 -21.9 -17.4 - 1.3 - 2.3 - 3.9 + 8.7 -20.1 -19.4 - 9.0 2.1 - 7.0 + 3.6 - 5.7 -20.1 - -10.2 -11.0 -12.0 - 9.5 - 2.5 - 3.4 - 2.1 -14.1 9.0 - 0.6 - 2.5 1.1 0.9 - 2.8 + 8.0 — 1.7 - 0.5 — 3.0 - 0.8 78.1 - 8.2 78.4 - 6.9 — 4.1 — 1.3 -1.9 - 1.5 - 5.0 - 1.5 5.2 - 3.0 + 4.2 p—Preliminary figures. Page Seven Index numbers of individual lines of trade and manufacture OUTPUT OF MANUFACTURES Philadelphia Federal Reserve District Index numbers expressed in percentages of the 1923-1925 average which is taken as 100 “Adjusted” index numbers make allowance for the usual seasonal “Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Not adjusted Adjusted for seasonal variation even distribution of business be tween the months of the year. Percentage comparison Mar. 1932 Feb. 1933 Mar. 1933 with Mar. 1933 Month ago Year ago 3 months Mar. 1932 1933 with 3 months 1932 Feb. 1933 Mar. 1933 62.1 60.6 52.Or 88.3 71.8 53.3 40.1 41.8 36.4 48.6 43.0 31.7 42.6p 44 .Op 33.9 62.Ip 43 .9 32.3 68.9 63.0 64.8r 88.8 72.5 73.6 51.5 46.7 47.6 75.2 52.0 54.8 54.6p 49.2p 53.2 82.9p 57 .0 55.1 Retail trade Sales Stocks of goods 64.0 64.0 52.3r 75.2 70.4 61.3 48.8 50.7 43.9 66.0 53.1 35.6 47. Ip 49.6p 37.4 57.3p 47.2 39.9 - 3.5 - 2.2 -14.8 -13.2 -11.1 +12.1 -26.4 -22.5 -28.5 -23.8 -33.0 -34.9 66.9 60.9 64.Or 81.3 71.8 72.1 53.8 49.2 48.8 80.0 55.3 55.9 52.9p 47.5p 52.5 76. Ip 56.4 54.0 + + - -20.9 -22.0 -18.0 - 6.4 -21.4 -25.1 1.7 3.5 7.6 4.9 2.0 3.4 Rate of stock turnover 3 months (actual, not indexes) -27.2 -26.1 -26.5 -31.4 -33.5 -44.5 0.77 - 9.4* 0.85 Wholesale trade Sales Stocks of goods 56.1 39.4r 77.5 32.6 40.6 83.2 30.0 23.1 46.9 53.5 32.2 67.6 29.7 39.9 82.8 27.4 16.1 43.3 - 4.6 -18.3 -12.8 - 8.9 - 1.7 - 0.5 - 8.7 -30.3 - 7.8 -14.4 -24.8 -25.8 -20.6 -19.1 - 2.9 -33.0 -62.9 -19.1 69.0 57.8 108.8 104.9 43.5 36.0 77 6 56.5 77.9 65.0 70.8 63.6 63.0 53.2r 70.2 61.2 56.7 97.7 35.4 53.7 66.3 60.9 50.1 62.4 + + -17.8 -10.2 -18.6 -30.8 -14.9 -14.0 -20.5 -11.1 62.5 42.8 91.1 37.4 49.3 85.3 40.9 43.4 53.5 1.9 6.9 1.7 5.0 2.0 4.2 5.8 2.0 Rate of stock turnover 3 months (actual, not indexes) Output of manufactures 12.3 14.4 15.6 35.4 23.7 22.9 15.6 19.4 27.8 17.2 10.3 20.2 36.0 53.3 9.1 9.2 23.5 11.7 Automobile parts and bodies.... 50.2 28.0 7.6 10.6 14.7 144.6 98.8 87.0 78.6 96.1 68.9 45.2 46.2 40.5p 30.8 26.4 42.4 45.6 29.6 21.4p 96.2 100.2 99. Ip 101.4 118.5 112.4 24.5 58.4 21.1 17.8 27.6 21.3 11.3 11.5 19.7 Slaughtering, meat packing......... 90.0 96.9 91.0 55.2 81.9 55.1 26.7 23.7 23. Ip 70.3 72.6 80.4 62.5 47.6 47.9 94.9 84.4 81.2 123.4 119.5 122.1 105.2 97.6 99.3p 49.6 51.1 43.5 52.5 58.1 66.7 124.2 123.7 127.3p 59.9 51.5 47.7 -14.6 - 3.4 -19.6 +67.0 -11 .1 - 1.1 -58.2 -28.3 -11.9 -28.3 -12.3 -14.3 -27.7 - 1.1 - 5.1 +16.1 -16.4 + 1.8 - 1.5* - 6.1 + 0.2 - 2.5 -12.6 + 0.6 - 3.8 + 2.2 + 1-7 -14.9 - 9.6 + 2.9 - 7.4 * Computed from data unadjusted for seasonal variation. Page Eight -21.2 -35.3 -43.9 -14.9 -32.5 -61.3 -76.7 -48.3 -39.8 -12.3 -10.4 -37.7 -53.1 + 3.0 +10.8 -58.0 -35.5 -41.6 - 5.3* + 1.1 -32.6 -13.5 - 3.2 -23.4 -14.4 - 1.1 - 5.6 -12.3 -21.3 + 2.5 -20.4 -15.9 -26.9 -16.1 -22.9 -21.2 - 6.3 -30.0 -57.7 -24.0 51.3 28.Or 79.0 27.4 36.1 77.4 24.3 16.4 46.0 50.3 36.4 71.0 27.6 34.3 76.2 26.9 69.6 57.6 109.9 107.0 44.4 34.9 75.3 53.1 79.5 67.6 74.3 65.5 58.6 46.8r 71.6 60.6 57.2 98.7 36.1 52.1 67.6 63.9 46.6 63.6 58.7 48.4 95.7 34.8 42.4 78.5 40.1 33.0 56.2 0.0* 1.02 -30.4 -36.9 -38.7 -45.1 -37.0 -73.4 -60.0 -29.7 -37.3 - 0.8 -10.1 -31.8 -39.9 - 2.8 +16.2 -65.4 -29.8 -47.2 - 6.4* + 1.6 -20.2 -10.5 - 4.7 -22.4 -14.9 - 2.4 + 0.0 - 6.6 -24.7 - 3.4 -16.8 17.9 37.9 29.2 22.6 49.6 25.4 54.7 15.9 150.4 81.0 43.4 45.4 46.5 100.0 110.5 45.0 27.0 18.7 85.4 86.4 125.3 23.7 66.8 63.8 96.8 130.8 104.1 49.6 68.0 123.3 62.3 p—Preliminary. 45.5 1.02 14.8 24.9 19.8 11.5 38.9 9.3 30.2 10.8 96.8 101.9 47 .6 33. i 30.2 iu4.2 129.2 14.8 20.4 10.8 82.1 98.7 71.6 21.9 67.5 47.6 84.4 125.5 105.4 51.1 56.9 122.5 54.1 14.2 24.5 16.4 19.3 33.5 9.8 8.2 90.5 71.0 39. Ip 28.2 21.8p 103.Ip 122.5 18.9 17.4 10.9 80.9 87.4 84.4 21. Op 64.7 48.9 82.8 129.4 98.3p 43.5 53.5 126.7p 49.6
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