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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT MAY i, 1534 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Volume of industrial production in creased further in March and there was considerable growth in factory employment and payrolls. The gen eral level of commodity prices showed little change between the middle of March and the middle of April but in the third week of April there was a sharp decline in grain prices. Production and employment. Output of manufactures and minerals, as measured by the Federal Reserve Board’s seasonally adjusted index of industrial production, advanced from 81 per cent of the 1923-1925 average in February to 84 per cent in March. The advance reflected chiefly increases of more than the usual seasonal amount in the output of steel, automo biles and lumber and an increase con trary to seasonal tendency in the output of coal. Production of textiles showed little change in volume on a daily average basis. In the early part of April, activity at steel mills and automobile factories increased further, according to trade reports, while coal production declined by a more than seasonal amount. Volume of employment at factories increased further between the middle of February and the middle of March by about 4 per cent, an amount larger than is usual at this season. Employ ment on the railroads and at mines also showed an increase. The num ber on the payrolls of the Civil Works Administration was reduced from about 3,700,000 in the middle of February to about 2,400,000 in the middle of March and 1,900,000 at the end of the month. The value of construction contracts awarded in March, as reported by the F. W. Dodge Corporation, showed a considerable increase from the low level of February followed in the first half of April by a decline. For the first quarter as a whole, the value of contracts was somewhat smaller than in the last quarter of 1933; publiclyfinanced projects continued to make up about three-fourths of the total. Distribution. Volume of freight car loadings showed a further increase in March, reflecting chiefly seasonal increases in shipments of merchandise and miscellaneous freight and a con tinued large volume of coal ship ments, which usually decline in March. In the early part of April, total car loadings showed a decline, reflecting a sharp reduction in coal shipments. Dollar volume of trade at department INDUSTRIAL PRODUCTION CONSTRUCTION CONTRACTS AWARDED stores increased in March by con siderably more than the estimated seasonal amount, after allowance for the early date of Easter this year. Prices. The general level of whole sale commodity prices, as measured by the index of the Bureau of Labor Statistics, was 73.3 per cent of the 1926 average in the week ending April 14 as compared with 73.8 per cent in the week ending March 10. During this period prices of steel, copper and automobiles advanced, while prices of farm products de creased somewhat. In the third week of April, wheat prices declined sharply and there were also declines in the prices of other grains, cotton and silver. MEMBER BANK CREDIT Wednesday figures for reporting member banks in 90 leading cities. Latest figures are for April 11. WHOLESALE PRICES PER CENT ——1120 Commodihes V-v Foods ^ lv O’ /v. a Farm Products 193*«- Index number of industrial production, ad justed for seasonal variation. (1923-1925 average =100.) Three month moving averages of F. W. Dodge data for 37 Eastern States, adjusted for sea sonal variation. Latest figure based on data for January and February and estimate for March. Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1926=100.) Bank credit. During the four weeks ending April 18 member bank reserve balances increased by $220,000,000, raising the volume of reserves in ex cess of legal requirements to $1,600, 000,000. This increase reflected a growth of $105,000,000 in the mone tary gold stock and further disburse ments by the Treasury of funds from its cash holdings and its deposits with the reserve banks. At reporting member banks in lead ing cities an increase of $400,000,000 in net demand and time deposits for the four-week period ending April 11 reflected chiefly the deposit by the public of funds disbursed by the Treasury as well as a growth in bankers’ balances. Government de posits were reduced by about $200, 000,000. Holdings by these banks of securities, other than United States Government obligations, increased by $64,000,000, and their loans both on securities and all other also increased slightly, with the consequence that total loans and investments showed a growth of $100,000,000 for the period. Money rates in the open market declined further in April. Rates on prime 4-6 months commercial paper were reduced from a range of 1-1 *4 per cent to 1 per cent, and rates on 90-day acceptances were reduced from Ya per cent to a range of Y&-l per A cent. Yields on government securi ties also declined. Business and Financial Conditions in the Philadelphia Federal Reserve District Business conditions showed a con siderable improvement in March and general activity continued well sus tained in April, although lately sea sonal slackening has been in evidence. Industrial production in March reg istered exceptional gains in addition to those reported for the previous month. Building activity also ex panded seasonally. The value of retail trade sales increased greatly in the month while that of wholesale busi ness just about equaled the usual seasonal rate of activity. The major ity of business indicators show un commonly large gains over a year ago but this comparison, as in the case of the previous month, unavoidably re flects an extremely low state of busi ness in March 1933 when, among other depressing factors, banks were closed for a part of the month. General employment in the twelve branches of industry and trade again registered an increase of 4 per cent and earnings 9 per cent from Febru ary to March, according to reports from establishments in Pennsylvania which in March employed over 700,000 workers and whose average payroll amounted to about $15,500,000 a week. Virtually all lines shared in this gen eral upturn, and some of them indi cate further gains in April. Manufacturing. Demand for manu factured products showed little change during March and early April, al though lately buying has slackened somewhat as is to be expected at this time. Since the middle of March there has been little variation in prices of semi-manufactured goods and finished products, while raw materials showed some decline in April. Some price advances on products such as chemicals, building materials, and cer tain textiles, however, have taken place. A number of reports indicate that there has been a noticeable resist ance by buyers to further price in creases. Compared with last year, sales of factory products since the first of the year have been substantially larger, as indicated by both dollar vol ume and tonnage. In most cases the volume of un filled orders has declined since last month, and at present many plants, particularly in the case of textiles, are working on contracts secured in earlier months. Fabricators of iron and steel products, on the contrary, report a larger number of orders on their books, owing in part to more active buying by railroads and other important consumers of metal prod ucts for further manufacture and equipment purposes. Employment and payrolls in fac tories of this district registered addi tional increases in March. Original reports from 1732 representative es tablishments in Pennsylvania, which employed about 391,000 wage earners whose weekly earnings amounted to $7,266,000, showed that the number of workers on the rolls was 3 per cent larger and the amount of wages disbursed was 8 per cent greater in March than in February. These fig ures compare with increases of 4 per cent in employment and 7 per cent in payrolls for the entire country. That these gains were more than seasonal is evidenced by the fact that the average change in Pennsylvania INDUSTRIAL PRODUCTION MERCANTILE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT MANUFACTURING RETAIL DOLLAR SALES WHOLESALE — DOLLAR SALES COAL MINING' 1929 1930 Page Two 1931 1932 1933 1934 1930 1931 1932 1933 1934 between February and March during the previous eleven years was a de cline in employment and an increase in payrolls of less than one per cent. Even excluding the past four years, when for the most part there was a downward trend, average gains be tween February and March from 1923 to 1929 were less than one per cent in employment and slightly over one per cent in payrolls. Compared with March 1933, which was the record low point in volume of employment and wage disburse ments, the number of wage earners this year was 30 per cent and their earnings 75 per cent larger. During the first quarter of the year employ ment was 21 per cent and payrolls 54 per cent higher than in the same period last year. From current reports and census figures it is estimated that the num ber of wage earners in all Pennsyl vania factories in March totaled about 789,000, a gain of 24,000 over Feb ruary and 177,000 more than in March of last year. Likewise, average earnings approximated $15,000,000 a week, or $1,100,000 higher than in February and $6,400,000 larger than a year ago. Working time, as re corded by over 80 per cent of report ing companies, increased 8 per cent from February to March and was 53 per cent greater than a year ago. Usually factory activity slackens in April, but preliminary reports indi cate that, in spite of a number of scattered strikes particularly in textile industries, both employment and working time were holding up to March levels while payrolls were run ning even slightly ahead of the pre vious month, reflecting in some measure an unusual number of in creases in wage rates which became effective on April 1. Output of manufactures in this dis trict increased in March for the sec ond consecutive month. This bank’s index number of factory production, which is adjusted for the number of working days and seasonal change, rose to 69 from 67 in February and 61 in January, showing a gain of 3 per cent in the month as was the case in a similar index of the Federal Reserve Board for the country as a whole. While the rate of expansion was not as great as in the previous month, it was above the usual sea sonal expectations, as ordinarily there is practically no change between Feb ruary and March. Heavy industries such as those pro ducing fabricated metal products, Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change which results from an uneven distribution of business be tween the months of the year. Not adjusted Percentage comparison Unadjusted indexes reflect merely the actual change which may or may not be up to the usual seasonal expecta- Mar. Jan. Feb. Mar. 1933 1934 1934 1934 tations. Mar. 1934 with Mar. Jan. Feb. 1933 1934 1934 Month Year ago ago Industrial production............. Manufacturing—total...................... Durable or capital goods. . . . Consumers’ goods........................ Metal products........................... ! Textile products........................... Transportation equipment........ Food products............................... Tobacco and products................ Building materials....................... Chemicals and products............. Leather and products.................. Paper and printing...................... Electric power output................. Industrial use of electricity.... Coal mining........................................ Anthracite...................................... Bituminous.................................... Employment and wages—Pa. 66 70 17 84 107 76 171 105 73 77 47 Factory wage earners...................... Factory payrolls............................... Employe-hours (1927-28=100). . General—12 occupations: Employment (1932= 100)......... # Payrolls (1932=100)......... Building and real estate Contracts awardedf—total........... Contracts awarded!—residential. . Permits for building—17 cities.... Mortgages recorded—Philadelphia Real estate deeds—Philadelphia.. . Sheriff deeds (1930 = 100)............ Other deeds (1930 = 100)............ Writs for Sheriff sales—Phila.......... Distribution 32 16 5 746 987 816 Retail trade—sales............................. Retail trade—stocks.......................... Wholesale trade—sales...................... Wholesale trade—stocks.................. Life insurance sales............................ New passenger auto, registrations . Freight car loadings—total............. Mdse, and misc. (64.9% of total) Coal (23.5% of total)............. 54 64 73 62 99 38 59 59 68 Business liquidations 54 70p 63 61 p 73 73p 64 6bp 93 100 54 60 61 63 58 59 77 85 Number........................................... Amount of liabilities................... +21* +54* +34* 59 32 39 -12 + 3 -52 + 89 + 57 + 82 Check payments........................... Rate of collections (actual) Retail trade............................... . # Wholesale trade........................ 62 64 26 46 66 65 25 41 66 68 65 71 15 19 84 97 110 122 77 80 175 197 100 119 61 85 63 89 48 64 49 86 43 67 75 21 99 136 82 197 135 91 95 65 55 86p 48 69p 80 20 97p 137p 82 194 129 88p 89p 81 70 47 49 74 53 55 76 57 59 +38* 80 106 112 122 +43 +34 +21 16 9 3 21 30 29 11 8 26 42 30 14 6 1109 858 1007 832 - 25 -22 +24 50 16 31 16 25 59 42 30 67 70 + + + 0* + 0* + + 1* + — o* + + 0* + - o* + — 0* + 22* 43* 23* 19* 20* 26* 19* Jan. 1934 +27 +1 - 2 +29 +20 +47 -62* -63* Feb. 1934 Dec. 1933 9 +12 + 1 34 11 5 24 39 43 55 52 56 89 42 43 45 49 45 57 64 61 89 20 55 52 73 45 60 67 64 107 40 59 54 84 69p 63p 69p 65p 111 67 61 58 82 133 86 69 71 + Wholesale (1926-100)............. Farm products............................ Foods............................................. Other commodities.................... Retail Food (1913 = 100)........... Philadelphia................................. Scranton............................ Mar. 1933 71 70p + + + + + + + + + 29 68 Prices—United States 70 68 -17 53 53 Mar. 1934 63 61 +29 - 2 - 1 +0 + 8 +11 + 5 + 2 +10 + 2* - 47* + 96* Payment of accounts (000,000’s omitted in dollar figures) +22 +20 +56 + 7 +84 + 6 +43 + 2 +13 +40 +15 +22 + 4 +12 +19 +44 +44 +38 + 4* + 9* + 53* 72 69p 49 84 54 83p 4b 69p 86 23 97p 134p 80 190 136 105p 109p 80p + 5 + 34 + 3 + 32 + 7 + 73 + 1 + 19 +12 +110 + 3 + 30 + « + 85 + 2 + 4 - 3 + 22 - 7 + 35 - 3 + 16 + S + 25 - 2 + 6 + 2 + 11 - 1 + 29 +24 + 44 +22 + 41 +34 + 71 + 3* + 30* + 8* + 75* + 8* + 53* 53 52 28 70 26 64 24 To date with year ago 64 64 68 31 64 25 62 28 67 60 72 43 59 55 64 66 78 90 105 92 112 97 112 74 61 67 79 108 117 115 74 61 67 78 108 117 115 23 54 23 24 +21* +43* +21* +18* + 16* +22* +15* Per cent change from 1934 Month ago Year ago -15 - 1 +31 + 8 -87 +21 +83 +54 + + +14 +23 +52 Banking and credit Federal Reserve Bank Bills discounted...................... Other bills and securities............. • Member bank reserves........... Ratio................................ Reporting member banks Loans to customers................. Other loans and investments.... Bankers’ acceptances outstanding. $130 141 107 44.3% $ 26 174 126 61.7% $ 24 175 138 $ 20 172 150 63.1% 68.2% $544 495 842 10.4 $491 550 949 15.5 $476 541 948 14.7 $471 570 $468 564 15.2 15.8 * Computed from data unadjusted for seasonal variation. T 3-month moving daily average. $ 17 170 1 1 6 4 p—Preliminary Page Three OUTPUT OF MANUFACTURES BY CLASSES OUTPUT OF BUILDING MATERIALS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT CONSUMERS’ GOODS CEMENT DURABLE \ OR CAPITAL GOODS LUMBER AND 1 PLANING MILLS 1929 1930 1931 E932 transportation equipment and some of the building materials, industries gen erally described as producers of dur able or capital goods and which comprise about 40 per cent of those covered by the index, account for the largest portion of the increase in the For example, the index month. number for this type of industry rose from 46 in February to 49 in March as compared with an increase from 83 to 84 in the output of consumers’ goods industries. Unusually large increases in the output of finished steel, motor ve hicles, and automobile bodies and parts accounted for the greater part of the general advance, although un usual gains also occurred in many other individual lines, particularly electrical apparatus, leather, sugar refining, and such textiles as carpets and rugs, wool and cotton products, hosiery, and underwear. A sharp fall ing off in cement production at a time when such plants usually expand operations, more than offset a sub stantial rise in the output of lumber and brick, so that the building mate rial industries as a group declined. With the exception of midsummer last year, the present level of factory production is the highest since early 1932. After declining for about six months from the July high peak, the upturn in February and March was sufficiently large to raise the quarterly average 20 per cent above that of last year and almost equal that in the first quarter of 1932. The trend this year on the whole also has been more favorable than in the past four years, despite more numerous labor controversies tending to hamper pro ductive activity. Total output of electric power de clined less than it usually does be Digitized Page Four for FRASER -1933 1934 1930 tween February and March, and the seasonally adjusted index number reached the highest point since last fall. Industrial consumption of power registered about the usual seasonal de cline but was much larger compared with a year ago. Sales for other pur poses decreased seasonally but on the whole continued about 14 per cent larger than in March 1933. Coal. The supply of anthracite coal in producers’ storage yards has con tinued to decline since the turn of the year, reaching early in March the lowest level since late 1922; this re duction was due in the main to an exceptionally cold winter with con sequent increase in demand by house holders. Stocks in dealers’ yards were 32.8 per cent less than at the end of January. Hard coal supplies held by electric power plants and railroads also were smaller. Ship ments for the first quarter of the year were the greatest for that pe riod since 1929; daily deliveries in March showed a seasonal decline from February, which has been continued through the first week of April. Pro duction during the first quarter of the year was the largest for that period since 1925, reaching the sea sonal peak in February instead of October. The daily average output in March was 6 per cent lower than in February, compared with the usual seasonal decline of about 23 per cent. Output in April fell off, though it continued much larger than a year ago. The customary spring reduc tions in prices were announced around the first of April. The demand for bituminous coal was active through March but in the first two weeks of April it slackened. Stocks in the hands of industrial con 1932 1933 1934 sumers have decreased noticeably since the first of the year, the greatest re duction in March occurring at by product coke ovens, coal-gas works and general manufacturing plants. Stocks at retail yards showed a similar de cline. For the first quarter of the year, shipments were greater than for a like period of any year since 1931. Daily average deliveries in March were the largest since January 1931. Since December of last year, daily average production has increased steadily, the gain in February and March being contrary to the seasonal trend. Al lowing for seasonal effects, output in March reached the highest peak, with one exception, since October 1930. Early in April minimum code prices of bituminous coal in central Penn sylvania were advanced about 25 cents a ton, reflecting a further adjustment of wages and hours. Building and real estate. Reflecting partly seasonal influences, building and construction activity in Pennsyl vania has increased appreciably since the middle of February, following a steady decline for about three months. Reports from approximately 1,200 con tractors, which covered construction work other than that sponsored by the Federal Government through the Pub lic Works Administration, showed in creases in March amounting to nearly 8 per cent in employment and 11 per cent in wage payments and working time. Awards of building contracts, which have been declining for several months, showed an exceptionally sharp rise from February to March, re flecting chiefly substantial gains in contracts let for public utilities and commercial buildings. The value of residential awards increased less than 8 per cent in this period, as compared FREIGHT CAR LOADINGS COLLECTIONS ALLEGHENY DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT WHOLESALE TRADE MERCHANDISE AND MISCELLANEOUS (649* or total) ^3.5» or total) RETAIL TRADE TOTAL INDEX ADJUSTED TOR SEASONAL VARIATION 1929 1930 1931 1932 1933 1934 1929 1930 1932 1934 Source: American Railway Association with an estimated usual seasonal rise of nearly 38 per cent. Contracts let for public works showed some further expansion during March, and there was a small increase in awards for factory buildings. In early April the dollar volume of total awards declined, owing to a sharp decrease in con tracts let for dwellings, which more than offset gains in other classes of building construction. Estimated cost of proposed build ing under permits issued in 17 cities of this district declined more sharply than usual in March, after showing a substantial gain in the previous month. First quarter comparisons show that, while the value of permits was about 21 per cent larger this year than last, it was considerably smaller than in any other recent year. Although the number of ordinary conveyances continues exceedingly small as compared with other years, reports from some sections indicate that they have shown a rising tend ency for several months. Agriculture. Spring farm activity, plowing and seeding, is well under way, particularly in the southeastern parts of this district. Preliminary re ports show that farmers this year in tend to reduce their acreage of corn, spring wheat, hay and sweet potatoes but to increase the acreage of oats, barley and white potatoes. Pennsyl vania tobacco growers expect to plant some 27,800 acres to this crop, an in crease of about 10 per cent over the 25,300 acres harvested in 1933. As indicated by the condition on April 1, production of winter wheat in the country will amount to about 492 million bushels as compared with 351 million bushels in 1933 and the average of 632 million bushels for the years 1927-1931, according to figures from the Department of Agriculture. In this district production is expected to be about 3 per cent larger this year than last, the greatest increase being in Pennsylvania. The growth of pas tures and meadows has been retarded by the lateness of the season and the unusually severe weather of last win ter. Output of dairy products has been smaller this spring than last. The trend of milk production has been downward for several months, owing chiefly to decreased feeding in re sponse to increased costs of feed. Al though receipts of milk and cream in the Philadelphia area have increased since the turn of the year, the total volume received in the three months was the smallest for that period in several years. Creamery butter pro duction in Pennsylvania, which has been decreasing since October of last year, declined sharply in March, reach ing the lowest level in the past three years. Distribution, trade, service. The movement of commodities in this sec tion, as measured by freight car load ings, increased more sharply than usual during March but declined some what in early April. Continuing the upward trend of recent months, total loadings of revenue freight were 5 per cent larger in March than in Febru ary, reflecting chiefly exceptionally large shipments of coal, grain prod ucts, and ore. Deliveries of merchan dise and miscellaneous commodities, which make up nearly 65 per cent of all car loadings in this region, showed somewhat more than the usual rate of gain from February to March. Dollar volume of wholesale trade showed slightly less than the usual rate of increase in March, sales of eight leading lines being about one per cent smaller, on a seasonally adjusted basis, than in February. In early April demand for hardware increased sea sonally, while in other lines sales indicated no marked change. As com pared with a year ago, all lines regis tered substantial increases, as might be expected in view of the interrup tion to business occasioned by the temporary closing of the banks in the early part of March 1933. Inventories at wholesale establish ments expanded 2 per cent in the month, which is about the usual rate of change for March; as compared with a year ago they were 16 per cent larger, reflecting partly higher prices. The rate of stock turnover was about 14 per cent higher in the first quarter this year than last. Col lections have improved steadily since the turn of the year, the percentage of payments to receivables in March rising to the highest level since 1930. Dollar sales of department, apparel, shoe and credit stores in this district during March showed an increase of 29 per cent as compared with Febru ary, after allowance is made for the usual seasonal change and the early occurrence of the spring holiday. All lines shared in this improvement. The combined adjusted index number rose from 54 in February to 70 in March or the highest since 1931. In April retail trade activity declined somewhat. Unusually large increases were shown as compared with last year even after adjustment is made for the fact that the Easter date this year was about two weeks earlier. The com bined index was 50 per cent higher, reflecting partly the banking crisis which occurred in early March of last year and partly higher prices. Esti mates show that retail prices of gen eral merchandise and food articles Page Five FEDERAL RESERVE BANK OF PHILADELPHIA MILLIONS $ REPORTING MEMBER BANKS MILLIONS 210 MEMBER BANKS’ RESERVE DEPOSITS' 150 Av• 120 NET DEMAND v DEPOSITS - < .* • f1 100 PHILADELPHIA FEDERAL RESERVE DISTRICT fvAJ f .A- * TIME DEPOSITS 90 BILLS DISCOUNT! D 7 — GOVERNMENT DEPOSITS 30 0 1932 1933 were from 25 to 30 per cent higher in March this year than last. Collections by retail establishments in March were more rapid than usual, the percentage of payments to receiv ables increasing 12 per cent from Feb ruary, even after seasonal influences are removed. Compared with March 1933, collections this year were 23 per cent more prompt. This improvement in collections seems to be fairly gen eral with respect to both regular charge accounts and those generally called installment accounts. The rate of stock turnover was 12 per cent higher in the first quarter this year than last, all lines indicating a more rapid movement of goods. The dollar volume of inventories increased but not as much as it usually does be tween February and March. Sales of new passenger automobiles in this district as in the country showed extraordinarily large increases Hotel business Philadelphia Federal Reserve District Per cent change March 1934 compared with Jan. 1Mar. 31 1934 Feb. 1934 Mar. 1933 Jan. 1Mar. 31 1933 -0.2 +3.2 - 0.0 +25.3 +16.7 Occupancy..................... % of capacity used: Mar. 1934. . . 46.0 Feb. 1934. . . 44.4 Mar. 1933. . . 36.6 Revenue from: Guest rooms............. Food............................ Other sources............ +0.5 +0.8 -0.2 +20.3 +35.5 +99.5 + 8.4 +17.4 +78.0 Total revenue.... +0.4 +38.8 1933 1934 The movement of business travelers shows an additional increase from February to March. Room occupancy of commercial hotels showed a gain of 3 per cent, according to reports from 28 typical hotels whose revenue in March amounted to $783,344. In come from both guest rooms and food also was larger than in the previous month, but revenue from other sources declined slightly. Compared with a year ago, room occupancy was 25 per cent larger and the total revenue nearly 39 per cent greater. Banking conditions. Total member bank reserve deposits in this district continue substantially in excess of legal requirements. During the past month government expenditures here exceeded receipts and there was a further decline in borrowings from this bank. On April 16 the reserve bank made a final payment of more than 7 mil lions to the government on its sub scription to stock of the Federal Deposit Insurance Corporation. This payment, while increasing the govern ment’s supply of funds, did not con stitute a withdrawal from the general money market of the district; other receipts of the Treasury included 19 millions withdrawn from depositary banks, but failed by 23 millions to equal local disbursements, which were unusually large. Of the funds pro 1934 vided by Treasury expenditures and by a reduction of nearly 9 millions in the reserve balances of member banks, 14 millions was absorbed by a loss in commercial and financial transfers, which represented an excess of pay ments to other districts over amounts received from them; non-member de posits at this bank increased 10^2 millions and the demand for currency increased 4^2 millions. Bills discounted decreased from 16 millions on March 21 to less than 13 millions on April 18, probably the lowest point since 1917. The reserve ratio of the bank, owing to a decline in cash reserves and increases in the Federal reserve note and deposit liabilities, decreased from 69.3 to 66.9 per cent. Fourteen millions was withdrawn from government deposits at the weekly reporting member banks in Reporting member Loans to customers: On securities................. All other......................... Loans to open market.. . United States securities.. Other securities................ Mar. 21, 1934 Apr. 18, 1934 (000,000’s omitted) $ 211 254 36 283 242 $ Apr. 19, 1933 220 250 36 287 245 $278 256 8 204 246 $1,038 658 310 74 134 203 $992 589 261 10 83 144 +23.4 Total loans and investments.............. Net demand deposits.... Time deposits.................... Government deposits.... Amounts due from banks Amounts due to banks. . $1,026 655 323 60 152 215 RESERVE BANK CREDIT AND THE FACTORS WHICH AFFECT IT in March as compared with February or a year ago. Our seasonally ad justed index of registrations rose 11 per cent in the month and was 59 per cent higher than last year. Life insurance sales also registered an im provement of about 8 per cent in the month and were 25 per cent larger than in March last year. Page Six Philadelphia Federal Reserve District Mar. 22 to Apr. 18 inclusive—in millions of dollars Sources of funds Reserve bank credit extended in this dis trict.................................................................. — 1.9 Commercial and financial transfers (chiefly interdistrict).................................................. —13.8 Treasury operations........................................ +15.4 Uses of funds Currency demand............................................ Member bank reserve deposits.................... Nonmember deposits at res. bank.............. Unexpended capital funds of reserve bank + 4.5 — 8.7 +10.5 — 6.6 Total............................................................. — 0.3 Total........................................................... - 0.3 Note: This table gives, in balance sheet form, p. summary of the banking changes which have had an influence on the amount of reserve bank credit in use in the district. the past four weeks, but time deposits increased 13 millions; a decrease of 3 millions in net demand deposits possibly was due to the fact that an expansion of 12 millions in balances held for other banks was more than offset by a rise of 18 millions in amounts due from banks. Investment holdings declined 7 millions; loans to customers on securities are 9 millions lower than they were four weeks ago, while other loans, which are more typical of commercial accommoda tion, are 4 millions higher, showing a slow but steady rise week by week since the end of February. These banks now are completely out of debt to the reserve bank. Time deposits of the reporting member banks on April 18 were at the highest point since the fall of 1931, and the aver age of demand deposits during the past five or six weeks has been the largest since the beginning of 1932. Member bank reserve deposits held at this bank during March were larger than at any time in its history. The total for all licensed member banks averaged 194 millions, or nearly 81 millions in excess of requirements under the law; excess reserves at country banks averaged 19millions and at Philadelphia banks, 61 millions. Early April figures indicate that the ex cess, though some Federal Reserve Bank of Apr. what reduced, still Philadelphia 18, was large. (Dollar figures in 1934 millions) weeks year In contrast with a decline of nearly Bills discounted. . . $ 13.4 -$ 2.7 -$39.8 9 per cent in the 1 3 - 0.8 - 5.0 national total of United States secu- 167 1 0 + 30.0 0 0 outstanding bank Other securities. . . 0.5 ers’ acceptances, Total bills and bills executed by Fed. securities......... S182.3 -$ 3.5 -$14.8 res. note circulation................ banks in this dis Fed. res. bank note 242.6 + 6.5 - 13.4 trict increased from circulation—net. 7.6 - 9.9 + 2.9 Member bank re$15,232,000 to $15, serve deposits.. . 202.7 - 8.7 + 90.4 793,000 during Government de2.4 0 March, reflecting Foreign bank de0 4 - 0.1 - 0.7 chiefly a rise in Other deposits.... 21.6 + 10.5 + 14.0 Total reserves......... 314.2 - 5.7 + 91.3 those covering im 66.9% - 2.4% + 7.9% ports. Percentage change—March 1934 from March 1933 City areas* Manufacturing Employment Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington............ York....................... Wage payments +28 + 4 +48 +36 +40 +37 +21 +33 +40 +25 +39 +35 +35 + 94 + 105 + 97 + 143 + 90 + 65 + 84 + 57 + 72 + 68 + 73 + 51 + 75 Building permits (value) Debits + 34 - 64 + 13 +218 - 40 +107 +201 + 55 +420 - 73 + 79 +126 - 61 >> o Retail trade sales +54 +73 +52 +82 +58 +42 +56 +63 +53 +67 Employment and Payrolls in Pennsylvania (All figures are rounded from original data) Manufacturing indexes Employment* (Indexes are percentages of the 1923-25 average taken as 100. Total and group indexes are weighted proportion 1934 ately.) dex Per cent change from Feb. 1934 76 +30 Iron, steel and prods... 62 Non-fer. metal prods... 84 Transportation equip. . 61 Textiles and clothing. . 100 Textiles........................ 97 Clothing...................... 111 Food products............... 101 Stone, clay and glass. . 66 Lumber products.......... 40 Chemicals and prods... 95 Leather and products.. 96 Paper and printing. .. . 89 Printing....................... 87 Others: Cigars and tobacco.. 63 Rubber tires, goods.. 96 Musical instruments. 50 + 3 +42 +38 +34 +24 +32 + 1 +22 +30 +19 +37 + 19 + 15 + 9 + + + + + + + + + + + + 4 4 8 2 1 3 1 5 4 i 5 2 1 +22 +36 +40 +11 + 8 0 * Figures from 1732 plants. Per cent change from TV! nr 1934 Mar. 1933 All manufacturing... Employehourst Payrolls* dex Mar. 1933 March— per cent change from Feb. 1934 Mar. 1933 57 + 75 +53 + 8 47 67 42 82 80 91 82 34 25 78 87 74 77 + 123 +12 + 66 + 73 +21 + 71 + 4 + 80 + 3 + 41 +11 + 35 + 1 + 76 + 7 + 67 - 4 + 57 + 4 + 55 + 4 + 22 + 2 + 17- + 3 +96 +62 +79 +16 +28 -17 +19 +51 +28 +51 + 5 + 8 + 5 +12 + 10 +17 + 2 + 2 + 1 + 2 + 8 - 0 + 5 + 2 + 1 - 0 43 72 45 + 47 + 72 + 80 + 7 +27 +68 - 4 + 6 + 1 + 7 + 5 + 0 Feb. 1934 f Figures from 1433 plants. Indexes of twelve occupations Employment Payrolls (Indexes are percentages of the 1932 Per cent Per cent average taken as 100. Individual in change change Mar. dexes are combined proportionately Mar. from from 1934 1934 into general index number.) in in dex Mar. Feb. dex Mar. Feb. 1933 1934 1933 1934 General index (weighted).................. Manufacturing........................................ Anthracite mining.................................. Bituminous coal mining....................... Building and construction................... Quarrying and non-metallic mining. Crude petroleum producing................ Public utilities......................................... Retail trade.............................................. Wholesale trade...................................... Hotels........................................................ Laundries.................................................. Dyeing and cleaning............................. 109 118 108 121 65 80 193 89 114 101 102 92 94 +23 +30 +24 +26 -11 +27 +80 - 6 +31 + 8 +12 + 1 + 8 +4 +3 +7 +5 +8 +9 +4 -0 +7 +0 +2 +1 +2 122 139 154 173 53 88 163 86 104 97 98 89 98 + 53 + 75 + 69 +112 - 10 + 71 + 57 — 5 + 27 + 9 + 18 + 12 + 44 + 9 + 8 +25 +14 +n +15 + 0 + 1 + 4 + 2 + 1 + 1 +13 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT I? MANUFACTURING AND NON-MANUFACTURING INDUSTRIES +68 March 1934 from February 1934 Allentown......... Altoona............. Harrisburg. . . . Johnstown........ Lancaster......... Philadelphia. . . Reading............. Scranton........... Trenton............. Wilkes-Barre. . Williamsport... Wilmington.... York.................. +1 - 2 + 6 + 7 + 3 + 3 + 7 + 7 + 3 + 2 + 5 + 2 + 3 + + + + + + + + + + + 4 16 12 32 4 5 7 8 3 1 2 — 1 + 6 +164 - 82 - 55 +497 - 2 - 21 +177 +142 + 32 +304 - 10 +216 - 76 * +17 +18 + 18 + 18 +29 +28 +10 +19 -19 +22 + 14 +36 +24 * Area not restricted to the corporate limits of cities given here. +42 +92 +63 + 7 +84 +42 +43 +59 +44 +61 EMPLOYMENT PAYROLLS +27 193 3 1934 Page Seven Index numbers of individual lines of trade and manufacture OUTPUT OF MANUFACTURES PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT ADJUJTce ro* scasonal vahiahc*. iwwmvc.ioo STEEL Philadelphia Federal Reserve District /V Index numbers: percentages of the 1923-1925 average taken as 100 Adjusted indexes allow for the usual seasonal change which results from an uneven distribution of business be tween the months of the year. LOCOMOTIVES AND CARS 75- Percentage com parison Unadjusted indexes reflect merely the actual change which may or may not be up to the usual seasonal expecta- J Vlar. Tan. Feb. Vlar. 933 934 934 1934 tions. J —_— — Mar. 1934 with Month Year ago ago To date with year ago Mar. Jan. feb. Mar. 1933 1934 1934 1934 SILK 150 100 75 Retail trade Sales Total of all stores........................... Department................................. Men’s apparel............................. Women’s apparel........................ Shoe................................................ Credit............................................ A 1 Not adjusted Adjusted for seasonal variation . 50 47 50 38 57 47 39 54 54 46 74 62 47 54 55 53 76 51 44 70p 68p 59p 99p 80p 62 +29 +25 +13 +30 +57 +41 + + + + + + 50 37 57 74 70 60 + + + + + + 24 22 33 39 31 37 43 44 34 62 44 33 Stocks of goods 53 47 52 76 56 54 64 64 86 54 74 63 56 55 86 59 73 61p 54p 56 p 57 71 — + — - 2 3 2 1 3 3 + + + + + + 16 14 6 13 2 32 49 53 83 57 45 44 47 66 49 31 57 49 51 73 51 70 45 45 44 56 41 39 60 53 81 55 72 69p 64p 59p 15p 81p 55 63p 56p 57p 93p 58 72 WOOLENS AND WORSTEDS 100 75 \s' + 12* 0.76 0.85 ■S’ HOSIERY A 125 A Jf V IOO 75 Rate of stock turnover f\ 50 v\_ — . 50 CEMENT Wholesale trade Sales Total of all lines.............................. Boots and shoes.......................... Drugs............................................. Dry goods..................................... Electrical supplies...................... Groceries....................................... Hardware..................................... Jewelry.......................................... Paper............................................. An 55 73 73 73p 39 51 50 48p 68 88 88 81 27 39 42 46 53 68 53 66p 83 109 113 108p 27 38 37 37p 16 37 41 38 56 60 OOp 44 - 1 - 4 - 8 + 9 +25 — 5 0 - 8 + 0 + 31 + 22 + 20 + 68 + 25 + 30 + 36 + 136 + 35 56 62 64 18 13 14p 19 98 110 111 109 32 42 48 48 78 74 71p 66 68 70 75 61 59 64 63p 50 53 56 53 58 63 63 60 + + — + - + + + + + + + + + + + + + + + + + 27 17 11 47 24 31 40 97 30 52 44 71 25 46 76 27 12 46 64 67 31 35 91 90 32 35 45 47 101 105 30 30 21 29 58 58 56 21 99 33 53 68 64 47 60 61 64 65p 18 15 15p 108 113 111 40 47 49 74 70 69p 73 77 71 60 66 66p 46 49 49 62 63 62 o 6 1 2 4 8 2 - 5 16 30 12 47 30 14 3 6 3 Rate of stock turnover Pig iron.................................................. Steel........................................................ Iron castings........................................ Steel castings........................................ Electrical apparatus........................... Motor vehicles..................................... Automobile parts and bodies........... Tiocomotives and cars........................ Shipbuilding......................................... Silk manufactures............................... Woolens and worsteds....................... Cotton products.................................. Carpets and rugs................................. Underwear............................................ Cement................................................... Brick....................................................... Lumber and products........................ An 50 V 25 + 14* 31 28 28 44 45 51 50 44 40 33 37 39 61 60 68 16 13 17 60 55 63 15 15 15 95 108 106 83 110 105 37 43 45 35 40 42 34 43 52 84 114 113 69 84 89 29 36 26 27 25 27 16 16 18 + i +128 +15 +124 - 9 +158 + 5 +128 +13 + 88 +27 + 83 + 14 +441 + 2 + 97 - 2 + 22 - 4 + 52 + 5 + ii + 5 + 59 +20 + 142 - 1 + 13 + 6 - 21 -29 + 5 + 8 + 52 +12 + 60 + 1* - ib - 4 +32 + 52 + 7 + 54 - 3 + 21 - 3 + 21 - 2 + 4 - 4 + 7 +14 + 47 -11 + 58 - 4 + 27 + o +13 + 87 LUMBER PRODUCTS 1.12 25 PAPER AND WOOD PULP 75 50 SHOES 1.28 + 116 +100 + 88 + 159 + 57 + 18 +144 + 42 + 9 + 8 - 3 + 68 + 60 + 7 - 32 + 44 + 27 + 49 + 4* - 7 + 19 + 46 + 13 + 21 + 2 + 15 + 30 + 48 + 27 + 3 + 58 14 24 16 19 33 10 13 8 90 71 39 28 22 95 122 19 17 11 81 87 84 30 65 49 83 129 92 43 53 126 50 30 43 45 35 57 14 59 14 96 85 37 36 34 87 68 20 25 14 83 104 66 42 70 58 84 125 119 66 64 135 74 28 47 45 42 57 13 60 15 106 116 44 43 44 119 91 25 24 16 84 87 83 44 74 60 86 143 129 77 68 131 82 32 55 42 44 63 18 69 17 110 108 43 45 53 117 97 20 26 17 85 78 129 47p 78 59 86 139p 135p 69 68 127 93 125 100 75 /K /A/A1A v A p—Preliminary. J ‘ LEATHER - GOAT AND KID 125 100 75 50 PETROLEUM REFINING 150 125 100 75 CIGARS 125 100 75 1931 * Computed from data unadjusted for seasonal variation. Page Eight _ 150 12 23 16 17 36 9 12 8 87 69 40 26 21 100 112 24 18 11 Slaughtering, meat packing............. 91 93 85 82 55 9o 64 84 Sugar refining..................................... Canning and preserving.................. 33 43 48 51p Cigars................................................... 70 86 88 85 Paper and wood pulp...................... 48 59 60 58 84 86 84 Printing and publishing................. 81 Shoes..................................................... 122 122 136 1311 Leather, goat and kid...................... 93 112 120 137j 43 66 77 69 52 71 70 67 127 137 133 127i Coke, by-product.............................. 48 74 78 89i A 50 Stocks of goods Output of manufactures 69p 54p 85 42 57 p 99p 37p 29 63p 75 1932 1933 1934
@FedFRASER