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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT MAY i, 1937 FEDERAL RESERVE BANK OF PHILADELPHIA Business and Banking Conditions in the United States In March industrial activity con tinued to increase and payrolls at fac tories and mines showed a substantial rise. Prices of basic commodities after advancing rapidly in March declined in the first half of April. Production and employment. Indus trial production increased from Feb ruary to March and the Board’s sea sonally adjusted index advanced from 116 per cent of the 1923-1925 average to 118 per cent. 'The rise reflected a sharp increase in output of minerals, chiefly coal, and an increase of some what more than the usual seasonal amount in manufacturing. The larger output of coal in March was due in part to stocking by consumers in an ticipation of a possible strike at bitu minous coal mines on April 1 when the agreement between mine operators and the miners’ union expired. A new agreement was reached on April 2 but, owing partly to the pre vious accumulation of stocks, produc tion in the first ten days of April showed a sharp decline. During March activity at steel mills increased seasonally and in the first three weeks of April was over 90 per cent of ca pacity. In the automobile industry INDUSTRIAL PRODUCTION output showed about the usual sea sonal increase in March and the first three weeks of April, considerable fluctuations during this period being largely in response to developments in the labor situation. Lumber produc tion expanded considerably in March, and there was a sharp rise in output of nonferrous metals. Cotton consump tion, which has been at an unusually high level in recent months, increased further in March .and in actual amount was larger than in any previous month. Production at woolen mills and shoe factories continued in large volume. Value of construction contracts awarded in March, as reported by the F. W. Dodge Corporation, was at about the same level as in February and sub stantially higher than a year ago. Pri vately-financed work increased,' while the amount of publicly-financed work continued to decline. The increase in privately-financed projects reflected a larger volume of residential building and of factory and commercial con struction. Employment and payrolls increased by considerably more than the usual seasonal amount between the middle of February and the middle of March. The expansion in payrolls was larger than in employment, reflecting in part a further rise in wage rates. In manu facturing, the principal increases in employment were in industries produc ing durable goods, particularly steel, machinery and lumber. The number employed in the production of non durable manufactures showed slightly more than the usual seasonal rise. Distribution. Distribution of com modities to consumers showed about the usual seasonal increase from Feb ruary to March. Mail-order sales ex panded considerably but the rise in department store sales was less than MEMBER BANK CREDIT Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934 to April 14, 1937. FACTORY EMPLOYMENT AND PAYROLLS WHOLESALE PRICES Employment 1932 Index of physical volume of production, ad justed for seasonal variation. By months, January 1929 to March 1937. Indexes of number employed and payrolls, without adjustment for seasonal variation. By months, January 1929 to March 1937. Indexes compiled by the United States Bureau of Labor Statistics, 1933 1934 1935 1936 1937 Indexes compiled by the United States Bu reau of Labor Statistics. By weeks, 1932 to date. Latest figure is for week ending April 17, 1937. Page One seasonal, considering the early date of Easter this year. Commodity prices. Prices of nonferrous metals, steel scrap, rubber, cot ton and wheat, which had advanced rapidly in March, declined considerably in the first half of April. Since the middle of March prices of coke, tin plate, and rayon have advanced and there have been smaller increases in a wide variety of other industrial prod ucts. Dairy products have declined, reflecting in part seasonal develop ments. Bank credit. In the four-week period from March 24 to April 21 excess re serves of member banks increased from $1,270,000,000 to $1,590,000,000 reflecting principally disbursements by the Treasury from balances with Fed eral reserve banks and purchases of U. S. Government obligations by the Federal Reserve System. The bulk of the increase in excess reserves was at banks in New York City and Chicago. Total loans and investments of re porting member banks, which had de clined sharply in March, reflecting sales of U. S. Government obligations, showed little change in the two weeks ending April 14. Loans to brokers and dealers in securities declined from the middle of March to the middle of April, while other loans, which include loans for commercial, industrial, and agricultural purposes, showed a sub stantial increase. These loans have increased almost continuously over the past year. Demand deposits, after declining in March, increased somewhat in the first half of April, and there was an increase in foreign bank balances, re flecting an inward movement of short term funds from abroad. Money rates• The rate on prime com mercial paper advanced from 94 Per cent to 1 per cent in the latter part of March. Bond yields, which had ad vanced sharply in March, showed no pronounced change in the first three weeks of April. Business and Banking Conditions in the Philadelphia Federal Reserve District Business conditions in the Phila delphia Federal Reserve District as a whole reflect a continuance of sus tained activity at substantially higher levels than for several years past. In dustrial production during March in creased, owing to a larger output of coal and manufactures, particularly of durable goods. The value of con tracts awarded for construction de clined in the month but was larger than last year. The condition of agri culture and spring activity on farms compare well with the average for past years, and cash income from the sale of farm products continues much larger than at the same period in sev eral years. Industrial employment and payrolls showed additional increases in March and were considerably larger than last year. The majority of the important lines of industry and trade throughout this district have shared in this ex pansion. Early reports for April in dicate that factory activity has been seasonally well maintained. Retail trade sales in March increased sharply but apparently declined some what in April as compared with last year largely because of the difference in the Easter season between this year and last. Aggregate sales at wholesale in March failed to equal the usual rate of change from February but were materially larger than a year ago. Shipments of goods to and from this district have been increasing. Commodity prices have advanced further during the month, particularly in the case of manufactures and farm products. In April, however, prices of certain basic commodities showed erratic fluctuations, generally down ward. Retail prices of food and gen eral merchandise have risen somewhat since the turn of the year and are higher than in recent years. Manufacturing. Current demand for factory products has continued quite active, although some slackening has been noticeable in certain lines of manufacture. Sales in most cases, however, are larger than for several years past. The volume of unfilled orders has declined somewhat since the middle of last month, except for metal products and building materials, but in virtually all cases the amount of forward business seems to be substan tially larger than a year ago. The metal industry has been espe cially busy as a result of uninterrupted demand for such products as castings, machinery and tools, hardware, and various other secondary products. Buy ing by railroads, automobile and con struction industries also has been active. Conditions in most textile lines INCOME PRODUCTION AND PRICES PER CENT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT INDUSTRIAL PRODUCTION FARM CASH INCOME (PHIL A FED. RES- DIST.) (pa, n. j, and^del.) US.COMMODITY PRICES (other THAN FARM PR0DUCT5 AND FOODS) ^ A*— INDUSTRIAL PAYROLLS PRICES OF RAW MATERIALS 1932 1933 Page Two 1934 1935 1937 1933 1934 1935 1937 * 4 * as well as in leather products have been relatively quiet, though orders on hand continue larger than in recent years. Building materials, on the other hand, have been in strong demand and prices have been rising. The trend of prices for commodities other than farm products and foods shows additional advances, as meas ured by the reports from cooperating concerns and by the official figures. The index compiled by the Bureau of Labor Statistics for this class of goods on April 17 was 86.5, relative to the 1926 average, as compared with 85.6 a month ago and 79.1 a year before. This advance largely reflects in creased prices of raw materials and labor, the two principal items in the cost of production. Inventories of finished goods at re porting plants have increased some what during the month as well as in comparison with a year ago. Buying of raw materials including semi-finished goods also shows some further expan sion, owing largely to more active business and the upward trend of prices. The supply of raw materials and foodstuffs held at source and in warehouses in this country and else where has been diminishing for sev eral years. The trend of employment and wage payments in this section has continued almost steadily upward for nearly four years. Marked gains occurred in Feb ruary and March, and preliminary re ports indicate that the April levels have been seasonally well maintained, despite some interruptions by strikes. The number of wage earners in Pennsylvania manufacturing industries increased about 1 per cent and the amount of wages paid almost 4 per cent from the middle of February to the middle of March. The index num ber of employment in March was 91 and that of payrolls 98, relative to the 1923-25 average taken as 100. Esti mates show that all manufacturing in dustries in this state employed in the neighborhood of 983,000 wage earners, or 17 per cent more than a year ago. It also appears that the amount paid in wages approximated $24,965,000 a week, or about 40 per cent larger than in March last year. Reports from Delaware factories show that employment increased 4 per cent and payrolls 6 per cent from Feb ruary to March. They were also re spectively larger than a year ago by 25 and 39 per cent. In southern New Jersey, the number of wage earners changed little in the month but was Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted indexes allow for the usual seasonal change in activity. Adjusted for seasonal variation Not adjusted Per cent change Unadjusted indexes reflect merely the actual change which may or may not be typical. Mar. 1937 from Mar. Jan. Feb. Mar. 1936 1937 1937 1937 Month Year ago ago Industrial production.... Manufacturing—total............... Durable goods........................ Consumers’ goods................. Metal products...................... Textile products.................... Transportation equipment. Food products........................ Tobacco and products......... Building materials................ Chemicals and products.... Leather and products.......... Paper and printing............... Coal mining................................. Anthracite............................... Bituminous............................. Crude oil...................................... Electric power Output..................................... Sales, totalt............................ Sales to industries!............... 76 75 61 85 r 67 84 r 64 71 91 29 108 120 81 54 r 54 r 57 406 94r 94 93 r 94 88 89 97 r 98 104 102 r 97 r 99 82 84 78 76 101 108 42 49 r 131 125 135 141 92 94 r 58 54 56 50 76 87 496 467 216 236 236 211 234 240 160 185 185 97p 95p + + + + + + + + + + + 8 + + + 53 - 81p 98 + 50 + 72 - 12 21 459 + 13 244 241 174 -k + - 3 1 6 + 13 + 14 + 9 26 47 15 53 19 32 7 17 80 14 14 + 37 + 16 + + + 93 92 95 95 97p 95p 69 r 87 r 67 70 84 26 109 123 82 46 r 44 r 58 12 83p 101 99 r 82 76 84 37 r 127 r 140 92 104 r 105 85 75 91 43 r 124 150 94 r 108p loop 88 78p 107 45p 117p 142p 97 64 59 70p 61 86 54 95 OOp 100 414 476 467 11 12 15 468 220 250 250 209 241 259 152 180 183 249 238 166 Retail trade sales................... stocks................ Wholesale trade—sales................... stocks................ Life insurance sales......................... New passenger auto, registrations Hotels—Occupancy......................... Income, total.................... Freight car loadings—total............. Merchandise and miscellaneous. Coal................................................. 80 67 88 r 67 r 91 84 79 104 r 76r 106 80 80 104 78 100 60 37 64 162 + 38 + 26 498 + + 91 98 98 122 179 18 19 + 24 + 89 10 - 1 + 24 5 34 86p + 80p 102p 78 4101 90 94 95 + 14* + 14* 107 119 121 + 34* + 30* 134 167 174 + + 48 71 74 19 51 46 65 57 71 131 112 154 18 24 28 34 29 25 458 504 461 21 + 21 +108 +127 - 25 - 28 + 9 - 8 8 7 1 2 1 + 8 + 18 + 15 + 18 4- 34* + i -f + + 31* 2* + 8* 1* 4 + + + + 14* 42 35 58 + + 3 + 19 60 56 19 40 36 60 52 61 86 106 125 23 14 22 34 27 25 467 580 470 35 60 107 48 26 508 73 70 82 r 67 r 101 Check payments.................... Rate of collections (actual) Retail trade........................ Wholesale trade................. 80 95 92 107 + 17 63 77 95 77 115 109 127 134 83p 82p 95p 79 112 146 129 135 73 78 73 82 79 87 62 35 58 30 56 64 78 97 93 105 31 74 + 34 62 20 33 77 28 73 33 78 8* 80 86 86 88 + 18* 76 80 91 87 83 91 87 84 94 87 85 + 15 + 12 + 1 Prices—United States (1926=100). Farm products.............. Foods............................... Other commodities.... + + + + + Wholesale food....................... Philadelphia................... Scranton.......................... + + Mar. 1936 (In millions of dollars) 55 63 71 89r 22 75r 6 94 50* 111 98 9* 119 121 10* 118 130 56 72 25 59 71 30 12 55 81 2* - 9* - 18* + 113* +214* + 26* Payment of accounts 88 89 91 45 + 14 11 + Number............................. Amount of liabilities.... + + 84 - 4 1 + Business liquidations 78 69 71 x* + 17* + 16* 4* + 41 + 39 3* + 38* + 37* _j_ Distribution Retail 76 76 22 14 + 17 28 + 74 Payrolls................................. Man-hours (1927-28=100) General (1932=100) Employment........................ Payrolls.................................. Contracts awardedf—total........... Reside ntialf.................................. Non-residentialf.......................... Public works and utilities!. . . . Permits for building—17 cities.. . Real estate deeds—Philadelphia . Writs for Sheriff sales—Phi la.. . . 11 + + + + + + + + + + + 91p 98p 106p 96p 83 79p 116 50p 117p 137p 95 Employment and wages Pa. Factory—Wage earners......... Building and real estate 27 26 48 15 58 15 30 1937 Mar. Jan. Feb. Mar. from 1936 1937 1937 1937 3 mos, 1936 2* + 10* 3* + 23* 1* + 9* 2* + 8* 1* + 8* 1* + 7* 1* + 7* + + 6* + 7* + 5* 7y 79 85 84 85 + + 5* 5* 81 77 88 82 86 81 87 82 % change from Dec. 1936 Jan. 1937 Feb. 1937 Mar. 1937 Month ago Year ago 1 200 390 76.1 + 1 + 7 + 2 + 9 +32 + 4 408 765 1,429 i7.2 - 1 - 1 - 1 +15 + 1 + 3 + 3 +40 Banking Reserve Bank and credit Federal Bills discounted.............................. Other bills and securities............. Member bank reserves................. Reserve ratio (per cent)............... Reporting member banks Loans to customers....................... Other loans ana investments.... Total deposits (adjusted)............ Bankers’ acceptances outstanding. $ $ (a) 183 295 73.4 $ 402 745 1,382 12.3 $ (a) 214 383 73.1 $ 413 769 1,478 13.5 $ (a) 200 387 75.0 $ 415 778 1,483 13.8 # * Computed from data unadjusted for seasonal variation, t 3-month moving daily average centered at 3rd month. (a) Less than $600,000. (a) 199 $ 74.3 411 776 1,437 15.0 $ r—Revised, p—Preliminary. t Not included in production index. Page Three OUTPUT OF MANUFACTURES BY CLASSES PHILADELPHIA FEDERAL RESERVE WORKING HOURS AND HOURLY EARNINGS DISTRICT PERCENT PENNSYLVANIA FACTORIES CENTS 192 3-23 AVOs 100 CON SUMERS’ GOC DS i 100 EARNINGS PER HOUR (*vo.) V- < -... !\ \ 4 /b V V v------------- V X/*^ 50 DURABL E GOODS • HOURS WORKED 0 ADJUSTED FO 1932 SEASONAL VARIATION 1933 1934 1935 11 per cent higher than a year before. But factory activity again expanded, since wage payments exceeded those in February by nearly 4 per cent and were 21 per cent larger than in March 1936. Production increased further when allowance is made for the usual sea sonal change and for the number of working days. The adjusted index of productive activity prepared by this bank in March rose to 95 per cent of the 1923-25 average as compared with 94 in February, 93 in January, and 75 in March last year. It now stands at the highest level, except for last December, since the fall of 1930 when it was declining. Industries manufacturing durable goods, particularly steel and a great variety of fabricated metal products, as well as the principal building materials registered the most pronounced gains in the month and as compared with last year. It is in these industries that the expansion in output and employ ment has been the sharpest over the past four years, following an extremely low level reached at the bottom of the depression. Productive activity at consumers’ goods industries barely maintained its seasonal level during March but con tinued noticeably above the rate of re cent years. The lack of sustained improvement in the month was due chiefly to some curtailment in the out put of shoes and leather as well as of textile products, reflecting in part the restrictive influence of labor difficulties. Most of the industries preparing food and tobacco products, on the other hand, have increased their operating schedules since February. The rate of productive activity in nearly all important lines of manu facturing and processing has been very DigitizedPage Pour for FRASER 1936 1937 1932 1934 1935 1936 1937 materially higher in the first quarter First quarter comparisons show that this year than in the same period since production was 37 per cent and ship 1929-30. This was also true of em ments 14 per cent greater this year ployment, payrolls and working time. than last. Moreover, all parts of the district have Per cent shared in this recovery from the de (Output and March change from shipment figures are pression low levels, though in varied 1937 Month Year daily averages) degree. ago ago The output of electric power by Anthracite Production................tons 176,800 +23 +50 eight central stations declined by a Shipments.................tons 169,404 +67 +22 77.8 - G Prices.......... (1926=100) — 5 smaller amount than usual from Feb Employment.............. No. 87,607 - 7 - 7 ruary to March and was 13 per cent Bituminous +72 Production................tons 477,593 + 5 larger than a year ago. Total sales Shipments.........No. cars 32,676 +50 + 3 97.5 + 0 - 2 Prices...........(1926=100) by ten systems about equalled the usual + 7 Employment............. No. 138,200 + 2 seasonal change from February. Con Coke +38 Prod.. . .(1923-25=100) 133.9 + 2 sumption of electrical energy by in 97.7 Prices.......... (1926 = 100) + 0 + 4 dustries decreased more than was Gas and fuel oil 113* -12 -11 Prod.. . .(1923-25=100) 65.5 - 2 expected, though it continued 9 per Prices.......... (1926 =100) -10 cent larger than in March last year. Sources: Bureau of Mines and Bureau of Labor * Estimated. Coal and other fuels. The anthracite Statistics. market lately has shown some expan Output of bi-product coke registered sion resulting partly from a more ac a small increase in March instead of tive consumer demand for household the usual seasonal decline; that of gas fuel incident to the usual spring re and fuel oils, however, decreased duction in prices. Shipments during sharply and was considerably below March increased sharply from the rela the volume of a year ago. Coke pro tively low levels prevailing earlier this duction thus far this year has been year and were the largest for that 32 per cent larger than in 1936, while month since 1934. Since the middle gas and fuel oil output showed a small of March colliery output has increased decrease as compared with a year ago. substantially. In the first three months Building and real estate. The value this year,' however, both production of building contracts awarded in this and shipments were considerably district during March was nearly onethird smaller than in February, al smaller than last year. Demand for Pennsylvania bitumi though they continued larger than a nous coal has slackened somewhat in year ago. The decline in the month recent weeks, owing largely to the reflected chiefly a substantial reduction fact that industrial consumers accumu in the value of contracts awarded for lated fairly large supplies prior to public works and utilities and nonApril 1 in anticipation of labor dif residential structures other than com ficulties which threatened to curtail mercial buildings. Tn the case of resi production at about that time. Out dential awards, a decrease in those for put of mines during March increased one and two-family dwellings was but, following the signing of a new more than offset by a sharp rise in agreement between the operators and the dollar volume of contracts let for labor, production declined sharply. apartments and hotels. VALUE OF BUILDING CONTRACTS AWARDED PHILADELPHIA FEDERAL RESERVE RETAIL TRADE PERCENT DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PRICES OF BUILDING " MATERIALS (i»2«*ioo) STOCKS SALES TOTAL RESIDENTIAL CONTRACTS ADJ FOR SEAS VARIATION (1923-23 »lOO) 1932 1933 1934- 1935 In the first three months this year the value of all contract awards amounted to approximately $41,000,000. This was a gain of 21 per cent compared with a year earlier and was the largest total of contracts in the first quarter since 1929, when the figure exceeded $94,000,000. Building contracts Philadelphia Federal Reserve District Per cent cha nge March 1937 (000’s From 1937 omitted) month from 3 mos. ago 1936 Residential........................... $ 4.152 Apts, and hotels............. 1,285 Family houses................. 2,807 Non-residential.................. 4.803 Commercial..................... 1,944 Factories........................... 1,005 Educational..................... 860 All other........................... 934 + 24 +387 - 7 - 32 + 23 - 20 - 40 - 64 + 84 +412 + 62 - 4 + 72 + 181 - 57 - 14 Total buildings........... $ 8,955 Public works and utilities . 2,817 - 14 - 59 + 21 + 21 Grand total................. $11,772 - 32 + 21 Source: F. W. Dodge Corporation. The demand for building materials has been increasingly active. Prices also have continued to advance and about the middle of April averaged 1,3 per cent higher than a year earlier. Employment at Pennsylvania plants producing important materials used in building and construction also has in creased considerably since early this year. The real estate situation shows con siderable improvement in comparison with other recent years. Renting de mand for houses and apartments lias been much more active thus far this year than last and rentals continue to show an upward trend. Leasing of commercial space also has in creased as a result of the improvement in business conditions. Sales of houses, particularly in the lower and medium price ranges, have increased. 1936 1937 1932 Agricultural conditions in tliis district at the start of the crop season compare rather well with the situation prevailing in the spring of other recent years. Department of Agriculture reports indicate that the condition of winter grains on April 1, while slightly lower this year than last, was somewhat above the ten-year average for that date in most sections. Pastures and other grasslands, on the other hand, appear to be a little less advanced than usual this year, reflect ing chiefly unfavorable weather during March. Grain stocks on farms at the beginning of April were smaller than a year before but were about as large as the average for the five years, 1928 1932. Department of Agriculture estimates show that in the three states included in this district aggregate sales of farm products in the first two months of 1937 amounted to approximately $57,000,000, an increase of 17 per cent over a year earlier and the largest total for that interval since 1930. This gain largely reflected the influence of higher prices. Distribution, trade and service. The dollar volume of retail trade sales by department, apparel, shoe and credit stores in this district was 8 per cent larger in March this year than last when allowance is made for the dif ference in the date of Easter. All lines participated in this gain, the greatest improvement being reported by shoe stores. At department stores the in crease over a year ago was 3 per cent at Philadelphia establishments and 14 per cent elsewhere in this district. In the first three months of 1937 the aggregate sales of all reporting lines exceeded those of a year earlier by 14 per cent; in this quarterly comparison Agriculture. 1933 1934 1935 1936 1937 no allowance is made for the earlier occurrence of Easter this year, whicli caused the holiday buying to be done in March instead of largely in April, as was the case in 1936. Total dollar sales increased about 7 per cent more than they usually do from February to March, so that our seasonally adjusted index rose from 80 to 86 per cent of the 1923-1925 average. Wholesale business in March, as in dicated by the dollar volume of sales in eight leading branches, was 15 per cent larger than a year ago and in the first quarter showed a gain of 22 per cent over the same period of 1936. March sales in the aggregate were vir tually unchanged as compared with February, whereas ordinarily a small increase occurs. Inventories of merchandise in both channels of trade increased seasonally and at the end of March were 18 per cent larger than a year earlier. De spite this increase, the rate of stock turnover at retail was approximately the same in the first quarter this year as last and was more rapid than a year ago in wholesale lines. Freight car loadings in this section increased more than they usually do from February to March, reflecting principally larger deliveries of mer chandise and miscellaneous commod ities and a sharp gain in coal loadings. In the first three months this year they were 25 per cent greater than in the same interval of 1936. Rail freight shipments consisting largely of manu factures originating in the Philadel phia industrial area also registered an increase that was larger than seasonal. Business of non-resort commercial hotels showed some further improve ment in March, as measured by room Page Five occupancy and revenue from guest rooms. Other details follow : Hotel business Philadelphia Federal Reserve District Room occupancy............... Per cent of capacity used: March 1937........ 60.1 Feb. 1937............ 58.3 March 1936........ 53.7 Income from: Guest rooms.................... F oocl.................................. Other sources.................. Total revenue............. March, per cent change from 1937 from 3 mos. 1936 Month ago Year ago +0 +2 - 1 +8 + 9 +2 +1 -1 +12 +16 +14 +13 + 8 + 7 +1 +14 +10 Banking conditions. The reserve bal ances of member banks at the Federal reserve bank recently have been at the highest levels on record, even exceed ing the peak last fall. Over the first twenty-one days of April the average was 431 millions, comparing with 390 millions in March, when excess re serves of 111 millions were 40 per cent above the requirements in effect at that time. On May 1 requirements again will increase, as announced by the Board of Governors some time ago; this increase will amount to oneseventh of the proportions now in force and will finally raise required per centages to points double those pre vailing before August 16, 1936. Heavier balances to the credit of member banks in Philadelphia ac counted for a rise in reserves from 381 millions on March 17 to 429 mil lions on April 21. In this period the district gained over 83 millions in commercial and financial transactions with other districts, a substantial part of which apparently was due to pay ments received in connection with a flotation of securities. Twenty-five millions of dollars was absorbed by Treasury operations, partly as a result of income tax payments and with drawals from depositary banks, and additional sums were used in meeting a 4 million increase in currency de mand and a rise of 7 millions in mis cellaneous deposits at this bank. Borrowings of member banks show a slight rise. The principal change in earning assets of this reserve bank was an expansion in United States securi ties, which represent a participation in holdings of the Federal Reserve Sys tem. The rise of 15 millions in the figures of this bank was due princi pally to a redistribution of System holdings after March 31; such routine adjustments are made quarterly in ac cordance with the earnings of the various reserve banks. In smaller DigitizedPage Six for FRASER measure the gain reflected increased holdings of the System. Tn the period under review deposits at weekly reporting member banks in creased 56 millions, but remained under the high level of late 1936 and the first reports of 1937. The recent gain was due to the accumulation of funds to the credit of individuals, part nerships and corporations, for inter bank balances changed little and there was a decline of 15 millions in those held for the Federal Government. Al though the greater part of the gain was in deposits payable on demand, which increased 49 millions, there also was a rise of 22 millions in time funds, all of which took place in April. April 21, 1937 Reporting member banks (000,000’s omitted) Assets Loans to brokers and deal ers: $ Outside New York City. Loans on securities to others (except banks). . . Acceptances and c-ommer- April 21, 1937 Bills discounted........ * i.i Bills bought............... 0.3 Industrial advances . 4.2 L nitea States securities....................... 209.7 Total bills and se curities ............... $215.3 Federal res. note circulation.................. 308.7 Member bank reserve deposits.... 429.3 U. 8. Treasurer— general account.. . 2.3 Foreign bank deposits....................... 9.7 Other deposits.......... 8.6 Total reserves........... 565.3 Reserve ratio............. 74.5% Changes in— Five weeks One year +$15.3 +$32.0 2.6 + 30.1 + 47.8 +129.4 2 2 - 10 4 3 1 27 Obligations fully guaran teed by U. S. Gov’t........ 453 +$ 8 +$ 13 - 11 + 13 91 291 U. S. Government securi- 5 1 + + - - - 8 14 + 15 1 2 Total loans and invest$1,170 -$ 6 +$ 4 305 16 148 91 Reserve with Federal Re- + 50 + 1 + 10 + 1 + + + 91 2 10 3 879 284 14 301 +$49 + 22 - 15 +$118 + 10 - 43 3 Liabilities Demand deposits, adjusted. $ + 32.5 + -$ - 335 $ +$ 0.7 - 0.1 - 1.1 + 14.9 One year 25 62 2 203 U. S. Government deposits. +S 0.4 - 0.0 - 0.0 -* i 1.35 Balances with other banks . Federal Reserve Bank of Philadelphia (Dollar figures in millions) 9 17 Changes in Five weeks + 1.7 + i.i + 6.7 + 44.5 - 0.1% 25 227 - 27.6 + 1.7 + 6.2 + 108.0 + 0.6% Increased deposit balances doubtless were due in part to an expansion of 13 millions in loans to customers. There was a rise of 15 millions in “All other” loans which include the bulk of the ac commodation extended to industrial and trade concerns. The trend upward in such loans has continued week by week since early March, and the cur rent total of 203 millions is 27 millions or about 15 per cent above a year ago, owing in substantial measure to the increase in business volume and higher price levels. Despite the loan increase, the out standing credit of the member banks + + 4 4 declined 6 millions in the five- week period and on April 21 was little larger than a year ago. The decrease in re cent weeks was due chiefly to a falling off of 11 millions in holdings of United States securities in the last fortnight of March and to a subsequent decrease of 8 millions in other securities and open market paper. The funds resulting from a decline in holdings of open market paper and investments and from deposit gains were instrumental in raising balances at the reserve bank 50 millions and in adding 10 millions to those wdth correspondents. National figures of bankers’ ac ceptances outstanding decreased a little in March, but those of banks located in the Philadelphia Federal Reserve District increased from $15, 000,000 to $17,200,000, rounding out the sixth consecutive month of expan sion. The total for this district at the end of the month was 40 per cent above a year ago and the highest since 1931. ft MEMBER BANK RESERVES AND RELATED FACTORS Philadelphia Federal Reserve District (Millions of dollars) Changes in weeks ended— Changes March 24 March 31 April 7 April 14 April 21 five weeks Sources of funds Reserve bank credit extended in district........... - 0.4 Commercial transfers (chiefly interdistrict). . . + 128.5 Treasury operations................................................ - 33.6 - 1.9 -37.4 + 1.3 + 2.0 + 9.9 - 0.6 + 1.0 -11.5 + 5.3 -0.5 -6.1 +2.2 + 0.2 +83.4 -25.4 Total....................................................................... +94.5 -38.0 + 11.3 - 5.2 -4.4 +58.2 Uses of funds Currency demand......................................... .......... Member bank reserve deposits............................ “Other deposits” at reserve bank........................ Unexpended capital funds of reserve bank.... + 3.9 +16.5 +74.3 - 0.2 - 2.5 + 8.0 -43.5 - 0.0 + 0.0 +26.9 -15.5 - 0.1 + - 4.3 1.8 7.7 0.0 -1.9 -1.8 -0.8 +0.1 + 3.8 +47.8 + 6.8 - 0.2 Total....................................................................... +94.5 -38.0 +11.3 - 5.2 -4.4 1 +58.2 * Employment and Payrolls in Pennsylvania LOANS TO CUSTOMERS REPORTING MEMBER BANKS PHILA FED. RES. DISTRICT MILLIONS (All figures are rounded from original data) Manufacturing Indexes OTHER LOANS Employment* (Indexes are percentages of the 1923-25 average taken as 100. Total and group indexes are weighted proportionately.) LOANS ON SECURITIES LOANS ON REAL ESTATE 1934 1935 Loans to banks and 1936 market excluded CURRENCY DEMAND PHILADELPHIA FEDERAL RESERVE DISTRICT (Changes cumulated from Jan 1,1932) MILLIONS ________ MILLIONS Employehours f Payrolls * Per cent Per cent Mar. change from Mar. change from 1937 1937 index Mar. Feb. index Mar. Feb. 1936 1937 1936 1937 All manufacturing .. Iron, steel and products . Non-ferrous metal prods. Transportation equip.. . . Textiles and clothing... . Textiles........................... Clothing.......................... Food products................... Stone, clay and glass. . . . Lumber products............. Chemicals and products. Leather and products. . . Paper and printing.......... Printing.......................... Others: Cigars and tobacco. . . Rubber tires, goods. . . Musical instruments. . 91 88 128 72 108 102 132 100 90 57 95 97 99 94 +17 +31 +22 +24 +10 + 9 + 13 - 0 -25 +10 + 8 + 4 + 8 + 7 +i +4 +2 +3 -2 -3 +2 -2 +3 -3 66 94 54 + 2 +28 + 2 * Figures from 2311 plants. Mar. 1937— per cent change from Mar. Feb. 1936 1937 +i +i +i +i 98 109 145 69 100 95 122 101 91 52 99 100 101 96 +41 +69 +42 +33 +15 + 14 +18 +10 +62 +38 +28 +27 +17 +13 +4 +38 +6 +53 +4 +34 +3 +31 -3 + 16 -5 + 16 +7 + 14 +2 + 3 +9 +52 +2 +35 +2 +27 +1 +25 +2 + 18 +1 +17 +3 +4 +5 +2 _2 -4 +5 -1 +6 -0 +1 -1 +3 +3 +2 -0 -1 58 102 51 +14 +53 +14 +8 +0 +3 + 7 +33 +17 +4 +7 -2 f Figures from 2067 plants. General Index Numbers 1937 Covering twelve branches of trade and industry 1936 Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) Mar. 1937 index 1935 Genera) index (weighted)... - 80 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.................. !_ . JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT OCT NOV DEC. Perce ntage change—March 1937 from March 1936 City areas* Manufs cturing Employ ment Allentown............. Altoona................. Harrisburg........... Johnstown............ Lancaster. ............ Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre.... Williamsport........ Wilmington.......... York....................... +21 + 9 +14+69 + 17 +13 + 9 +13 +15 + 3 +10 +21 + 9 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre.... + 4 - 0 + 4 + 3 + 2 + 2 - 3 - 2 +1 + 0 - 2 + 4 - 1 Wage payments + 58 + 8 + 53 + 150 + 30 * + 28 + 15 + 17 + 33 + 16 + 34 + 38 + 30 Building permits (value) +124 - 18 +431 + 80 +847 +238 - 84 +521 +446 +173 - 76 +159 Debits +26 +19 +38 +70 +29 +39 +23 - 1 + 8 +29 +38 +23 +30 122 144 79 131 71 114 165 92 116 121 110 100 100 Payrolls Per cent change from Mar. 1936 Feb. 1937 + 14 +17 - 7 + 7 +39 +34 -16 + 5 +10 +12 + 6 + 7 + 12 +i +i -7 +2 +3 +4 +2 +0 +2 +1 -0 +1 +5 Mar. 1937 index 179 238 71 259 81 217 187 101 125 118 122 108 105 Per cent change from Mar. 1936 Feb. 1937 +34 +41 -11 +38 +61 +77 - 3 + 8 +15 +13 +15 + 10 + 8 + 3 +4 - 8 + 4 + o + 7 + 3 + 3 + 4 +1 + 2 + o + 16 Retail trade sales + 15 + 12 + 31 +120 + 22 + 9 + 14 + 11 + 10 + 23 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT PAYROLLS + 18 March 1937 from February 1937 Wilmington.......... York....................... + 13 + 0 + 9 + 15 + 5 + 4 — 11 + 1 + 4 + 0 + 2 + 6 + 1 + 10 + 50 + 54 - 57 +954 +236 + 104 + 18 + 98 - 49 + 112 - 8 + i +21 + 11 +29 +26 +22 +41 +17 +10 - 0 +19 +24 +50 +22 + + + + + + + + + + 17 66 27 8 57 31 31 23 23 33 + 6 EMPLOYMENT 1932 1933 * Area not restricted to the corporate limits of cities given here. Page Seven Index numbers of individual lines of trade and manufacture OUTPUT OF MANUFACTURES PHILADELPHIA FEDERAL RESERVE DISTRICT aoju$tco ren 51 Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Not adjusted Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. LOCOMOTIVES AND CARS Per cent change Unadjusted indexes reflect merely the actual change which may or may not Mar. Jan. Feb. Mar. 1936 1937 1937 1937 be typical. Mar. 1937 fre m Month Year ago ago 1937 from 3 mos. 1936 Mar. Jan. Feb. Mar. 1936 1937 1937 1937 Retail trade Sales Total of all stores. Department........... Men’s apparel. . . . Women’s apparel. Shoe....................... Credit.................... Stocks of goods Total of all stores. Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... 86p 80p 72 109 89 94p + 7 + 5 - 6 + 2 -1-24 +15 + 8 + 7 + 7 + 7 +15 + 7 79 80 80p 60 63 61p 92 69 76 97 r 118 123 112 72 65 72 71 83 r 100 107 108p - 1 - 3 +11 - 9 - 1 + 0 84 75 79 104 82 r 99 80 76 77 107 72 r 82 + + + + + + 14 73 13 65 16 61 18 113r 10 73r 28 75r +18 +16 +17 +16 - 2 +30 80 75 67 102r 77 r 88 r 67 53 70 54 66 106 r 74 85 r Rate of stock turnover 3 months (actual, not indexes). 0* 63 54 74 93 64 r 65 63 57 62 79 55 r 73 83p 74p 70 128 91 85p WOOLENS WORSTEDS 71 77 82p 53 60 63p 72 68 77. 101 116 123 59 66 72 95 105 llOp 0.89 0.89 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....................... 88 r 57 99 r 49 r 79 r 130 r 48 42 72 104 r 81 117 73 134 127 53 54 85 104 102p 69 54 95 111 72 60 124 131p 132 134 57 61 56 62 92 86 67 r 28 llOr 41 r 96 r 66 r 69 76 r 78 78 33 37 102 107 108 49 50 49 160 157 156 74 76 79 74 78 82 56 59 56 64 68 64 - 6 +15 - 5 - 4 +22 +66 + 3 +26 +49 +20 + 1 +12 + 0 - 2 - 1 + 4 + 5 - 6 - 6 +12 89 r 50 121 59 90 118 42 31 88 95 95p 49 61 113 100 61 56 111 112p 123 123 46 59 39 47 90 90 67 r 31 111 r 42 r 93 r 68 r 72 61 63 + + + + + + + + + 22 82 r 16 64 12 104 r 37 46r 76 68 r 6 120r 29 47 45 32 25 75 75r 37 100 46 152 77 75 49 63 77 79 40 41 109 109 48 50 147 151 79 81 80 86 52 52 67 65 +18 +31 - 2 +19 +62 +19 +19 -15 + 3 - 2 -22 -14 -17 + 5 + 2 + 6 LUMBER PRODUCTS 62 Rate of stock turnover 3 months (actual, not indexes). + 13* 1.36 1.54 SHOES 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...........t............... Canning and preserving......... Cigars.......................... ............... Paper and wood pulp............. Printing and publishing......... Shoes......................... t................ Leather, goat and kid............. Explosives.................................. Paints and varnishes............... Petroleum products................ ' Coke, by-product..................... 22 75 100 79 119 120 21 78 40 231 101 86 64 171 111 148 40 61 34 70 96 79 113 120r 25 68 42 245 104r 87 61 181 113 148 61 63 r 34 66 97 86p 114 131 28 68 40 238 101 85 62 176 100 152 62p 66 34 — 5 + 2 + 8 + 1 + 9 +11 + 0 - 4 - 3 - 3 - 2 + 2 _ 2 -11 + 2 + 2 + 3 + 0 + 0* 83 47 56 90 62 84 134 106 76 75 145 93 88 119 61 100 75 95 165 107 86 95 167 130 92 52 61 107 75 98 r 179 105 85 91 159 125 102 72 61p 115 75 99 176 lOOp 89 90 139p 129 +11 29 62 55 75 84 r 12 27 197 78 78 47 117 110 135 35 for seasonal variation. Page Eight +37 + 0 + 8 + 1 + 1 - 2 - 4 + 5 - 1 -12 + 3 + 130 + 57 + .56 + 53 + 55 +133 + 24 + 50 + 21 + 29 + 9 + 33 + 51 - 8 + 13 + 80 + 86 + 58 + 2* + 24 + 52 + 9 + 27 + 20 + 17 + 31 - 5 + 17 + 20 - 4 + 38 + 101 + 56 + 44 + 77 + 46 + 90 + 16 + 57 + 27 + 27 + 14 + 36 + 55 + 4 + 19 +119 + 76 + 54 + 0* +12 + 9 + + + + + + + + + 15 16 18 13 24 4 9 19 9 32 33 66 58 84 79r 13 60 29 205 81 75 50 116 114 147 27 35 21 88 79 72 50 83 64 86 142 105 76 76 144 97 p—Preliminary. 73 98 72 126 113 19 77 39 235 103 87 65 160 116 146 28 56 31 88 96 82 60 82 74 95 168 113 86 86 165 130 72 101 81 127 115r 26 73 43 240 llOr 89 65 184 117 162r 43 61 r 33 90 92 68 56 89 75 98 r 188 113 85 89 157 132 76 104 90p 128 122 31 74 44 248 104 82 67 175 104 165 48p 64 33 90 98 110 56p 106 76 101 186 99p 89 91 138p 134 r—Revised. LEATHER-GOAT AND KID
@FedFRASER