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THE BUSINESS REVI FEDERAL RESERVE '#ANK S'* OF PHILADELPHIA MAY 1, 1941 % sr X rade and industrial activity in the Third Fed eral Reserve District continues to expand. The production of defense materials has increased steadily to new high levels, and a large volume of orders is being received by nondefense industries stimulated by active consumer buying. Backlogs in many key lines, already adequate to sustain opera tions at current levels for several months, are ex panding further. Both wholesale and factory delivery periods are being extended. Scarcity of some materials and of several basic types of skilled labor is increasingly evident. Sub stitute materials, labor saving methods and train ing programs for semi-skilled workers are being adopted in many lines, but some curtailment of production in nonessential industries later in the year may be in prospect. In other sections of the country operations in the steel industry are being restricted by the shortage of fuel, resulting from the shutdown of the bituminous mines, but this has as yet had little effect on the output of steel in this District. Production of pig iron has been reduced. f0 *0 r*0 °IV, /S/Ok creased only 1 per cent in this period in Phila delphia and is nearly 20 per cent below 1929. Industrial activity in the District expanded from February to March, when there is ordinarily little change, and reached a level 24 per cent above March 1940. Widespread gains occurred in the production of both durable and nondurable manu factured products. The output of electric power declined less than usual, and the production of coal and crude oil was reduced. Building activity expanded further in March to high levels. A large volume of contracts was awarded for residences. Extensive new plant facil ities are being built in the armament and other heavy industries, and widespread renovations are being made in commercial structures. Employment and wage disbursements continue to increase. The number of factory wage earners in March was the largest since 1929, and further advances were in evidence in April. The volume of wage disbursements exceeded any month since 1923. Retail stores have reported the largest volume Costs of labor and materials are rising and prices generally are strong. The unusually active demand of Easter business in the past twelve years. Trade for staple commodities in the face of potentially increased in March, was unusually active in early limited supplies and increased costs of production April, and since then appears to have been well has raised quotations on these products to levels sustained. Wholesale buying is heavy, represent substantially above those prevailing before the ing chiefly fill-in-orders. war. Basic wage rates are being increased, and the The demand for commercial loans is active. Bank volume of overtime work has expanded. The gen investments in government securities are increas eral level of wholesale prices has risen about 9 ing, and deposits and reserves approximate the per cent since August 1939, but this increase is not highest levels on record. Money rates have been yet reflected in the cost of living, which has in generally steady. Page One RETAIL TRADE PRODUCTION AND PRICES PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT INDUSTRIAL PRODUCTION (pHILA. TED. RES. DlSt) SALES WHOLESALE COMMODITY PRICES 'STOCKS PRICES OF RAW MATERIALS ADJUSTED TOR SEASONAL VARIATION 1936 193 7 1938 1939 1940 1941 1935 1936 1937 1938 1939 1940 1941 able products, the largest gains were at shipyards, aircraft factories, and establishments producing automobiles and parts. Further substantial in creases were reported in the steel industry, particu larly in the case of structural steel, machinery, and tools. In the past year employment in heavy indus tries has expanded 23 per cent and payrolls 48 per cent. The number of workers producing consum ers’ goods in March was 5 per cent larger than a Factory output increased further from the middle year ago, and payrolls in these lines were 14 per of March to the middle of April. Heavy ship cent higher. ments, however, are reducing stocks of finished Average hourly earnings of factory workers in goods in all reporting lines except building ma Pennsylvania advanced to a new high of more than terials. In the textile industry, inventories are 75 cents in March compared with 71 cents a year smaller than at this time last year. Supplies of earlier and less than 59 cents at the peak of 1929. raw materials have been increased further in recent Working time increased fractionally to an average weeks, except in the steel and textile industries. of 40Y'2 hours a week, or about 10 hours a week Factory employment and payrolls have contin less than in 1929. Weekly earnings in March ued the steady expansion which, except for a slight reached a new high average of $30.24. Manufacturing. Demand for products manu factured in this District continues to expand. The volume of inquiries is increasing in virtually all reporting lines, and sales have advanced further to levels substantially above a year ago. Backlogs are still growing in spite of higher operating sched ules. Prices of manufactured goods are rising and are generally higher than in 1940. decline over the turn of the year, has been in evi dence since last spring. Preliminary reports indi cate further increases in April, as the volume of defense production is increasing. Widespread shifting of workers into defense industries is in evidence. Basic wage rates are advancing and the volume of work at overtime rates is increasing. Factory employment in Delaware increased 4 per cent in March and payrolls 2 per cent. In southern New Jersey, employment advanced 2 per cent and wage payments 5 per cent to levels 17 and 41 per cent, respectively, above a year ago. The output of manufactured goods in this Dis trict expanded about 3 per cent from February to The number of wage earners in Pennsylvania March, when there is customarily little change, factories increased 2 per cent from February to and reached a level 25 per cent above March of March, reaching 1,040,000 workers or 15 per cent 1940. Production of capital goods expanded 2 more than a year earlier. Wage disbursements in per cent and consumers’ goods 4 per cent on a sea creased 3 per cent in the month to an estimated sonally adjusted basis. The greatest improvement $28,900,000 a week, or 34 per cent more than a was in the textile and building materials industries; the only decline reported was at plants producing year ago. chemical products. Advances in employment and payrolls in March were widespread. At plants manufacturing dur Production of electric power declined 3 per cent Page Two METAL PRODUCTS INDUSTRIES TEXTILE ACTIVITY EMPLOYEE-HOURS IN PENNSYLVANIA FACTORIES EMPLOYEE-HOURS IN PENNSYLVANIA FACTORIES PER CENT PERCENT ELECTAlCAL .APPARATUS WOOLENS AND x WORSTEDS MACHINERY \ / STRUCTURAL IRON AND STEEL TEXTILES 19 3 7 193 8 193 9 194 0 19 4 1 1937 1938 1939 1940 1941 less than seasonally from February to March and Building. Activity in the building industry in continued 16 per cent above a year ago. Total this District increased in March. A substantial sales were reduced by the usual amount in the volume of operations on commercial and factory month, but the decline in sales to industry was buildings and public works and utilities has been somewhat smaller than was to be seasonally ex undertaken. The demand for dwellings and manu facturing space has improved considerably and pected. rentals generally are advancing. Coal and other fuels. Available supplies of The reported value of awards increased from bituminous coal are small, owing to the stoppage $10,900,000 in February to $29,600,000 in March. of mine operations in the Appalachian field on This was the largest since 1931 and was consider April 1. Operations in some industries are being ably more than double the dollar volume of a year curtailed because of the shortage of fuel. The de earlier. Sharp gains in the month were reported mand for anthracite has slackened seasonally. in the case of all types of construction, the most pro nounced being in awards for commercial buildings, Production of anthracite decreased more than multiple-family dwellings, and unclassified struc usual from February to March and declined fur tures. Contracts for one and two-family houses ther during the first part of April. Output in March increased further in March and were the largest for averaged 176,800 tons a day as compared with that month since 1929. Contracts for factory build 188,600 tons in February. The volume of hard coal ings, including some structures started earlier, mined during the first three months of 1941 aggre totaled nearly $4,000,000, as against only $500,000 gated about 14,000,000 'tons or 8 per cent above in March 1940. Aggregate awards in the first three months of 1941 amounted to $58,900,000, a year ago. or 44 per cent more than in the same period last The output of bituminous coal continued to ex year. pand through March when a seasonal decline was to be expected. Production increased from 430, Agriculture. Seasonal farming operations are 500 tons a day in February to 446,800 tons in progressing rapidly, growing conditions are moder March. Output in the first quarter totaled nearly ately favorable, and the market for farm products 33,000,000 tons, the largest in four years and 20 has improved considerably. Prices of agricultural per cent above 1940. commodities have advanced over 6 per cent since February and in mid-April were 10 per cent higher Activity at by-product coke ovens was well sus than a year ago. Farm cash income has been in tained in March and production reached the highest creasing. In Pennsylvania, New Jersey, and Dela level in records going back through 1923. The pro ware receipts from the sale of crops and livestock duction of coke has been reduced recently because products through February approximated $56, of the shortage of coal. Output of gas and fuel oils 000,000, as against $51,400,000 in the first two declined from February to March. months last year. Page Three BUILDING MATERIALS FREIGHT CAR LOADINGS EMPLOYEE-HOURS IN PENNSYLVANIA FACTORIES ALLEGHENY DISTRICT PER CENT PER CENT MERCHANDISE AND MISCELLANEOUS' » STONE CLAY AND 5^/GLASS PRODUCTS A/ ' LUMBER PRODUCTS 1937 1938 193 9 1940 194 1 The supply of farm labor is being reduced by the oppoi'tunities for employment at higher wages in defense industries. The cost of producing farm products is increasing, reflecting principally ad vances in wage rates for agricultural workers. In this section the monthly rate without board on April 1 was nearly 9 per cent above a year ago. 1936 1937 1938 1939 1940 1941 At men’s apparel stores, sales increased slightly more than seasonally in March but at other report ing establishments the gains were smaller than were to be expected. Inventories generally are larger than a year ago, but the increases have been sub stantially smaller than the expansion in sales. Wholesale trade sales increased from February to March in all reporting lines except groceries and Moisture conditions were adequate at the begin jewelry, and in all cases the volume of business ning of the season, but unusually high temperatures was substantially larger than in March 1940. As and insufficient rainfall in the first half of April retailers’ stocks were depleted substantially by the dried out the top soil, retarding the germination of seed and the growth of early truck crops. Wheat large volume of holiday business, fill-in buying for prompt delivery has been heavy. Inventories and rye were damaged less than usual by winter at wholesale establishments, except in the case of weather and their condition on April 1 was some dry goods and paper, are larger than last year but what above average. The outlook for orchard are not heavy in comparison with sales. fruits is generally satisfactory. The movement of freight in March was unusually Trade. The movement of commodities from pro active. The seasonally adjusted index of total ducers to consumers continues unusually active. freight-car loadings in the Allegheny District Easter business at retail establishments reached the reached the highest level, since 1930 and was 36 largest volume since 1929, and the indications are per cent above March of last year. The volume of that purchases by consumers throughout April were most types of shipments increased more than was well sustained at levels substantially above a year to be expected from February to March. The only exception was in the movement of ore, which has ago. In the wholesale markets reordering of both been unusually heavy for the past several months. seasonal and staple merchandise is active, and de In the first quarter shipments of all types of goods livery periods are being extended. The movement except farm products were substantially larger of freight was heavy in March and appears to have than in 1940. Freight-car loadings in the Phila been well maintained in April in spite of the shut delphia area have also expanded. down of bituminous mines. Sales of new passenger automobiles increased Sales by department stores increased slightly 16 per cent from February to March and were 14 less than usual from February to March, owing per cent above a year ago. Buying has been un principally to unfavorable weather in the early part usually heavy, as consumer incomes have increased of the month. Subsequently, business expanded substantially and the prospects are that prices of sharply in the case of both seasonal and other goods automobiles may rise and supplies may be re and was at levels well above a year earlier. stricted somewhat later in the year. Page Four REPORTING MEMBER BANKS DEPOSITS AT MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS MILLIONS INVESTMENT IN U.S. GOV’T OBLIGATIONS (direct and guaranteed) 1800 COUNTRY BANKS 1400 COMMERCIAL LOANS 19 3 8 19 3 9 PHILADELPHIA BANKS 19 4 0 19 4 1 Banking conditions. The demand for commer cial loans has continued active over the past month, and credit at the reporting banks has been further expanded by the purchase of a substantial amount of Treasury securities. Deposits have advanced sharply to a new peak. 1937 1938 1939 1940 1941 800,000 to $173,100,000 on April 1, when the securities in the System Open Market Account were reallocated among the Reserve Banks. Earning assets of the reporting member banks increased $39,000,000 in the five weeks ended April 23 to $1,281,000,000, establishing a new Member bank reserves increased $60,000,000 high since the fall of 1931. Investments were in in the preceding five weeks and more than $90, creased $22,000,000 by large purchases of United 000,000 in the last twelve months to $781,400,000 States bonds. Holdings of guaranteed obligations on April 23. Gains were reported chiefly by banks declined somewhat in spite of the allotment of notes in Philadelphia, where average reserves in the first of the Reconstruction Finance Corporation. The half of the month were 129 per cent above require investment in corporate and municipal securities ments. At the country member banks, which carry has been steady in recent months. relatively larger balances with correspondent in Loans increased $17,000,000 to $505,000,000 stitutions, the proportion of excess to required re on April 23, owing principally to the rising de serves was 86 per cent. mand for commercial credit. Since early 1939 Since March 19 this District has gained $71, the volume of commercial loans has expanded 000,000 in transactions with other districts. The approximately 50 per cent, reflecting increased only substantial withdrawal of funds from the business activity, heavier inventories, and rising market has been through an increase of $10,000,000 costs and prices. In the past five weeks small in in the demand for currency. Treasury operations creases also were reported in several other types of have involved a substantial shifting of funds, but loans; the only decline was in those made to carry the net effect upon the reserves of member banks securities. has been small. Subscriptions received by this Bank to offerings of direct and guaranteed obliga Deposits at the reporting banks have increased tions of the United States totaled over $700,000, 11 per cent since April 1940 to an all-time peak 000, and allotments, paid for largely in cash, were of $1,969,000,000. The increase of $100,000,000 in excess of $77,000,000. This heavy transfer of in the past month was chiefly in balances of states funds to Treasury balances and the government’s and local governments. receipts from taxes and other sources were largely Outstanding acceptances of banks in this district counterbalanced by heavy disbursements for work have increased $2,100,000 in the past year to relief, Social Security and unemployment benefits, $11,800,000. The volume of paper covering im ship construction and other defense production. ports and domestic shipments increased sharply, No significant change has taken place in the bill while the financing of exports and transactions based and security holdings of f this Bank other than a on goods stored in or shipped between foreign coun reduction in holdings of governments from $174,- tries declined. Page Five BUSINESS STATISTICS Employment and Income Production in Pennsylvania Philadelphia Federal Reserve District Not adjusted Adjusted for seasonal variation Industry, Trade and Service Per cent change Indexes: 1923-5 =100 MANUFACTURING................. 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.................... Individual lines 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. Sugar refining........................... Canning and preserving.... Cigars.......................................... Paper and wood pulp............ Printing and publishing. . . . Shoes............................................ Leather, goat and kid............ Explosives.................................. Paints and varnishes.............. Petroleum products................ Coke, by-product.................... COAL MINING........................ Anthracite.................................. Bituminous................................ CRUDE OIL............................... ELEC. POWER—OUTPUT Sales, total................................. Sales to industries................... BUILDING CONTRACTS TOTAL AWARDS1................. Residential!............................... Nonresidentialf........................ Public works and utilities!.. Mar 1941 from Mar. Feb. Mar. 1941 1941 1940 101p 101p 120p 88p 124p 82p 1G4 81p 106 55 130p 114p 88 98 98 117 85 121 75 161 81 101 52 r 133 112 89 82 106 82p 144 169 34 105 48 818 80 73 51 124 92 136 91 64 30 92 69 73 106 86 66 136 68 159r 109 34 15 67 100 51 40 443 808 70 75r 67 r 51 45 46r 117 120 87 80 137 130 67 76 66 r 38 26 29 99 61 72p 105 79 90 141 88p 144 91 145p 143 67 64 p 92 382 312 313 236 95 77 72 100 79 90 139 85 146 89 155 141 67 65 83 396 302 312 231 90 66 111 94 64 64 84 55 82 r 81 81 81 83 70 93 78 105 40 129 106 87 100 51 65 104 75 89 120 92 98 81 172 118 55 r 53 r 68 r 417 270 271 189 Mo. ago Year ago + + + + + + + + + + + + + + + + + + + + + + + 3 3 2 4 2 a l 0 5 7 3 2 0 Employment 1941 from 24 25 47 9 49 16 76 4 1 37 1 8 2 83 r 81 17 19 40 3 38 3 66 4 2 42 4 1 0 95 80 94 16 79 114 111 29 24 86p 88 69 77 80 162 152 157 153 r 101 52 36 34 16 81 73 115 108 47 52 43 27 52 461 77 850 792 73 79 82 7 71 49 23 69 r 49 r 48 3 54 119 12 123 119 83 91 2 96 2 148 142r 150 70 53 52 53 37 58 63 64 r 24 13 28 28 89 2* 92 91r 97 96 2 95 78 93 100 21 57 66p 67 16 95 84 3 97 77 81 79 2 91 0 92 90 128 6 150 146 87p 92 91 10 98 43 144 146 93 87 83 8 170 7 144p 152 123 12 149 149 57 13 69 73 55 66p 71 8 69 r 20 94 90 426 390 396 9 275 14 318 320 268 310 337 15 179 224 228 21 + 19 + 45 + 24 +in + 55 +129 + 57 + 22 + 85 + 13 + 44 + 14 + 3 + 16 1 + 35 + 68 + 15 + 3* 1 + 19 + 12 + 1 + 5 + 1 + 17 — 4 + 47 + 12 — 15 + 21 + 23 + 21 + 35 8 + 16 + 16 + 25 + + + + + + + + + + + + + + + + + + + +41 + 44 + 16 +155 — 25 + 38 + 31 + 116 - 30 +32 +71 102p 99 102p 99 + + + + + + + + + + - + + + + + + + + + + 126p 84 p 173 80p 98 49 131p 118p 90 79 50 111 86 123 81 162 80 85 44 133 118 89 64 45 85 66 85 73 99 77 96 35 129 109 88 Harrisburg... . Lancaster......... Philadelphia . . Reading............ Wilkes-Barre.. Wilmington.. . York.................. Employment Payrolls Building permits value Retail sales Feb. 1941 Mar. 1940 Feb. 1941 Mar. 1940 Feb. 1941 Mar. 1940 Feb. 1941 Mar. 1940 +3 +2 +2 +1 +1 +2 +2 +1 +2 +3 +1 +3 -6 +19 + 2 +25 +13 + 3 + 19 + 13 + 0 + 13 + 8 + 6 +21 +20 +7 +3 +1 0 +5 +2 +5 +1 +4 +7 +4 +2 +2 +45 + 8 +42 +31 +16 +36 +39 +17 +26 +23 +19 +37 +51 +127 - 29 +352 - 3 +426 + 85 + 27 +203 + 7 - 1 +153 +631 - 68 + 101 - 16 - 16 - 40 - 39 + 26 + 85 - 64 +293 - 7 - 80 +403 - 30 - 1 +30 +20 -11 +52 + 18 +22 +28 + 16 +37 0 + 9 +13 + 4 + 2 + 6 +13 - 2 +1 + 8 +19 +21 + 13 + 9 +17 +12 +31 + 11 +49 +26 +19 +15 + 5 +13 +16 +51 +10 +10 + 12 +23 +14 + 10 +32 +15 — 1 + 1 +17 +15 +22 +26 +2 +2 -1 +1 +2 +7 -1 0 +2 +3 -2 +i +i 194 265 73 247 67 217 167 115 128 135 123 139 116 +10 +15 - 3 + 4 + 6 +11 + 4 + 5 0 + 2 - 2 + 7 +11 +3 +3 -6 +5 +i +9 0 +2 +2 +2 -1 +1 -2 +27 +34 +10 +25 +22 +31 + 7 + 7 + 3 + 8 + 3 + 10 + 6 Payrolls* Employment* Indexes: 1923-5 = 100 Per cent Per cent Mar. change from Mar. change from 1941 1941 index Feb. Mar. index Feb. Mar. 1941 1940 1941 1940 TOTAL....................................... 100 Iron, steel and products . . . 101 Nonferrous metal products 157 Transportation equipment. 76 Textiles and clothing........... 96 Textiles................................... 89 Clothing................................. 125 Food products........................ 106 Stone, clay and glass............ 89 Lumber products................... 61 Chemicals and products. . . 100 Leather and products.......... 96 Paper and printing............... 100 Printing................................... 90 Others: (agars and tobacco............. 63 Rubber tires, goods............ 92 Musical instruments......... 73 +2 +1 +3 +5 +2 +1 +2 +1 +3 0 +1 +1 +1 +1 +15 +25 +30 +23 + 7 + 9 + 2 + 4 +17 +17 + 7 + 4 + 2 + 1 108 147 218 85 98 90 134 113 97 58 116 103 111 102 +3 +4 +5 +3 +4 +4 +5 +1 +3 +3 +3 +2 +3 +3 +34 +51 +48 +29 +21 +24 +13 + 5 +29 +31 +13 +21 + 7 + 4 -4 0 0 + 3 + 13 + 13 57 108 88 -3 -2 +3 + +25 +34 * Figures from 2,429 plants. Hours and Wages Weekly working time* TOTAL............................... Iron, steel and prod... . Nonfer. metal prod. . . Transportation equip.. Textiles and clothing. . Textiles.......................... Clothing......................... Food products................ Stone, clay and glass . . Lumber products......... Chemicals and prod... Leather and products. Paper and printing.... Printing.......................... Others: Cigars and tobacco.. . Rubber tires, goods.. Musical instruments. Hourly earnings* Aver Aver Ch’ge age Ch’ge age hours Debits Mar. 1940 * Area not restricted to the corporate limits of cities given here. 121 155 67 110 43 107 136 100 107 126 100 108 100 Manufacturing Factory workers Averages March 1941 and per cent change from year ago Feb. 1941 Page Six GENERAL INDEX............ Manufacturing....................... Anthracite mining................ Bituminous coal mining. . . Building and construction Quar. and nonmet. mining. Crude petroleum prod......... Public utilities........................ Retail trade............................. Wholesale trade..................... Hotels........................................ Laundries................................. Dyeing and cleaning............ 55 43 44 114 Local Business Conditions* Percentage change— March 1941 from month and year ago Indexes: 1932=100 p—Preliminary, r—Revised. * Unadjusted for seasonal variation. ! 3-month moving daily average centered at 3rd month. Payrolls Per cent Per cent Mar. change from Mar. change from 1941 1941 index Feb. Mar. index Feb. Mar. 1941 1940 1941 1940 mos. 1940 -10 + 1 - 6 + *i + 6 - 1 + 5 - 7 +1 + 7 +10 +11 + « + 6 + 4 +19 - 3 +1 4- 1* + 4 -21 0 + 5 0 - 1 + 2 + 3 - 2 + 3 - 6 + i 0 - 2 +n - 3 + 3 0 + 2 63 57 44 125 Mar. Feb. Mar. 1941 1941 1940 Aver age Ch’ge 6 $30.24 5 34.80 27.82 4 35.18 2 6 20.40 20.63 5 19.73 8 1 24.96 26.91 1 6 22.14 31.23 1 22.14 4 3 30.33 36.37 3 +16 +21 + 11 + 6 + 13 + 15 + 9 + 1 + 9 + 13 + 5 +15 + 4 + 3 16.49 27.45 31.62 + 3 +10 +17 40 5 41.9 40.5 42.4 37.5 37.6 37.2 39.6 36.9 38.3 38.8 39.7 39.7 36.9 +10 $.752 .832 +15 + 7 .686 + 3 .829 + 7 .543 .549 + 9 .523 + 2 .617 - 1 .733 + 8 .587 + 6 .813 + 3 .562 + 11 .731 + 2 .935 0 + + + + + + + + + + + + + + 36.0 37.4 44.2 + 2 +10 + 4 + 1 0 +13 * Figures from 2,214 plants. 459 .733 .715 Weekly earnings! ! Figures from 2,429 plants. Distribution and Prices Per cent change Wholesale trade Unadjusted for seasonal variation March 1941 from 1941 from 3 mos. 1940 Month Year ago ago Adjusted for seasonal variation Indexes: 1935-1939=100 Mar. Feb. 1941 1941 +1 +15 + 5 + 1 - 3 + 8 - 4 + 3 +28 +31 +25 +54 + 16 +51 + 10 +26 Inventories Total of all lines........................ Dry goods.......................... Electrical supplies................. Groceries................................. Hardware........................ Jewelry............................. Paper.............................. + + + + + + + +10 — 14 +37 +22 +27 + 3 -11 Inventories Department stores—District___ Philadelphia................. Women s apparel.......... Shoe........................... Credit................... Source: U. S. Department of Commerce. FREIGHT-CAR LOADINGS Total............................ Merchandise and miscellaneous. . . Merchandise—l.c.l. . Coal.................................... Ore........................... ............................ ()oke........................ Forest products......... Grain and products........... Livestock............................ Commodity prices Index: 1926=100 5 1 8 7 5 4 4 Per cent change from Mar. 1941 Month Year ago ago Basic commodities 7 industrial................. 7 agricultural............. Wholesale (813)*. . Raw materials........... Finished products. . . b arm............................. I ood.......................... Other............................. Retail food* (1935-9 = 100)......... Philadelphia................ Scranton....................... Aug. 1939 90 59 81 75 84 72 75 85 +1 +2 +1 +2 +2 +1 + 7 + 2 +27 +24 + 9 + 13 + 6 + 17 +12 + 6 98 95 98 +1 0 0 + 3 + 2 + i + 5 + 2 + 6 +2 + 14 + 8 + 4 + 4 RETAIL TRADE Sales Department stores—District.. Men’s apparel............................ Women’s apparel.................. Shoe............................. Credit.......................... MISCELLANEOUS Life insurance sales.... New passenger auto, registrations .... Hotels—(1934 = 100) Occupancy......... Income, total............. Business liquidations Number.......... Amount of liabilities... . Check payments................... Mar. 1941 from 117p 115 112p 118 116 101 107 114r 131 103p 99 99p 101 121p 101 97 101 106 114 98 94 96 107 117 + 3 + 2 - 2 + 6 + 4 144 138 105 144 137 135 100 120 102 89 + 2 +36 176 123 111 166 97 93 97 74 114 108 + 6 +33 94 95 93 102 101 103 85 - 1 1941 from 3 mos. 1940 133 +14 +14 +1 Mar. 1941 +n + 5 + 4 +16* =------------------* Computed from unadjusted data. * Source: U. S. Bureau of Labor Statistics. Mar. 1940 Month Year ago ago Sales Total of all lines........................ Boots and shoes...................... Dry goods................................. Electrical supplies................. Groceries.......................... Hardware.................................. Jewelry....................................... Paper..................................... +26 +40 +17 +57 +13 +50 +35 +13 Not adjusted Per cent change + 6 + 3 +21 +23 + 9 +53 +39 + 14* Feb. Mar. 1941 1940 106p 104 97p 108p 102 102p 90 99 89 97 88 97 77 104 76 r 117 95 99 105p 99 97 93 98 94 105 111 120 133 133 106 139 82 187 102 116 95 123 123 98 131 69 183 96 96 93 98 98 90 105 54 108 73 107 93 104 109 138 103 140 109p 118p 109 103 106 133 131 120 113 52 108 + 15* -26* 118 110 p—Preliminary. r—Revised. BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Reporting member hanks (000,000’s omitted) Apr. 23, 1941 Changes in— Five weeks Assets Commercial loans.................. $ Open market paper.............. Loans to brokers, etc............ Other loans to carry secur.. Loans on real estate............. 262 37 25 28 50 Other loans..................... 103 + Total loans........................ One year +$ 13 + 2 + + 1 + 2 + 1 + 2 + 51* 8 1 3 1 9* $ 505 +$ 17 +i 66 Government securities... $ Obligations fully guar’teed. Other securities...................... 412 +$ 25 +$ 70 88 — 2 14 276 1 _ Total investments............... $ 776 +$ 22 +$ 56 Liabilities Demand deposits, adjusted $1,222 +$104 lime deposits................... 260 + 1 U. S. Government deposits . 13 + 3 Interbank deposits......... 474 8 Borrowings..................... Other liabilities....................... 16 Capital account..................... _ 11 217 + Sources of funds: Reserve bank credit extended in district Commercial transfers (chiefly interdistrict).. . I reasury operations.................. Mar. 26 Apr. 2 Apr. 9 Apr. 16 Apr. 23 Changes in five weeks - 3.7 +18.9 + 0.6 + 2.2 +30.8 + 1.2 +11.9 + 17.9 + 7.0 -25.4 + 12.3 - 4.9 +34.8 -20.5 + 1.8 +71.0 - 2.1 +31.0 - 6.1 + 9.4 +70.7 - 2.5 Total................................ Uses of funds: Currency demand.. . . Member bank reserve deposits... ‘ Other deposits” at Reserve Bank. Other Federal Reserve accounts + 2.0 +16.5 - 2.8 + 0.1 +16.1 + 0.8 + 0.0 - 0.2 - 0.1 + 3.3 + 0.1 + + + 0.5 9.5 0.6 0.0 +10.5 +59.6 + 0.5 + 0.1 +15.8 +20.6 +31.0 - 6.1 + 9.4 +70.7 _ Total loans & investments $1,281 +$ 39 +$122 Reserve with F. R. Bank. . 603 + 56 + 76 + 23 Balances with other banks. 214 + 2 5 Other assets—net.................. 81 2 * Revised. Changes in weeks ended— Philadelphia Federal Reserve District (Millions of dollars) +$205 6 _ 40 + 35 _ + + 1 2 Member bank reserves (Daily averages: dollar figures in millions) Held Re quired Ex cess Phila. banks: 1941: Mar. 1-15.. $525.3 $237.2 $288.1 Mar. 16-31. . 538.3 240.0 298.3 Apr. 1 -15 . . 573.3 250.1 323.2 1940: Apr. 1-15. . 478.3 216.7 261.6 Country banks: 1941: Mar. 1-15 .. Mar. 16-31, . Apr. 1-15. . 1940: Apr. 1-15.. 192.2 193.4 195.0 181.4 103.0 103.8 105.1 95.2 89.2 89.6 89 9 86.2 Ratio of excess to re quired 121% 124 " 129 ” 121 ■ 87 86 86 91 ” ” ” ” Federal Reserve Bank of Phila. (Dollar figures in millions) Apr. 23. 1941 Bills discounted......... Bills bought................ Industrial advances. U. S. securities........... $0.1 0 2.3 173.1 $175.5 Note circulation. . . . 430.9 Member bk. deposits 781.4 U. S. general account 53.5 Foreign bk. deposits. 77.9 Other deposits........... 24.2 1215.9 Reserve ratio.............. 88.9% Changes in— Five weeks One year - $0.1 0 0.1 1.7 - $0.1 0 - 0.4 - 23.8 + + + + + + -$24.3 + 85.6 + 91.4 + 26.5 + 40.8 + 8.3 +280.0 + 5.0% + - $1.7 9.4 59.6 17.9 1.9 0.5 53.4 0.5% Page Seven National Summary of Business Conditions INDUSTRIAL PRODUCTION 160 ISO 150 140 140 130 130 120 120 IIO IIO IOO IOO 90 90 80 80 1935 1936 1937 1938 1939 1940 1941 Federal Reserve index of physical volume of production, adjusted for seasonal variation, 1935-39 average = 100. By months, January 1935 to March 1941. DEPARTMENT STORE SALES STOCKS Federal Reserve indexes of value of sales and stocks, adjusted for seasonal variation, 1923 25 average = 100. By months, January 1935 to March 1941. WHOLESALE PRICES Industrial activity increased further in March but declined somewhat in the first half of April owing to temporary reductions in output of bituminous coal and auto mobiles. Wholesale prices of many commodities advanced considerably and the gov ernment took steps to limit price advances of some additional industrial materials. Production Volume of industrial output continued to increase in March and the Board’s seasonally adjusted index rose from 141 to 143 per cent of the 1935-39 average. Ac tivity increased- further in most durable goods industries, particularly in those producing machinery, aircraft, ships, and armament. Steel production increased to about 100 per cent of rated capacity. Automobile production, which usually increases considerably in March, showed little change from the high rate reached in February. In the first half of April out put was reduced considerably owing to a shutdown at plants of the-cord Motor Company during an industrial dispute which was settled about the middle of the month. Retail sales of new and used cars advanced to new peak levels in March and dealer’s stocks at the beginning of April amounted to about a month’s supply at the current rate of sales. Output of lumber, which had been sustained at unusually high levels during the winter months, rose less than seasonally. Activity in the textile and shoe industries increased further in March. _ Cotton consumption rose to a record level of 854,000 bales and there was also an increase in rayon deliveries. At wool textile mills activity was sustained at the peak rate reached in February, not showing the usual large seasonal decline, and in the chem ical and rubber industries further advances were reported. Bituminous coal production rose considerably, while output of crude petroleum was maintained in March at about the rate that had prevailed in the four preceding months. In the first half of April coal production declined sharply, however, as most mines were closed pending conclusion of contract negotiations between mine operators and the miners’ union. Production of nonferrous metals continued in large volume in March and deliveries of refined copper showed a sharp rise as domestic production was supplemented by supplies received from South America. # Construction contract awards rose sharply in March and were larger than in any month since the middle of 1930, according to the F. W. Dodge Corporation data. The rise was chiefly in awards for publicly-financed work, which had been reduced con siderably in January and February, and in private nonresident!al projects, particularly factory construction. Awards for private residential building, which had been un usually large during the winter months, showed less than the customary seasonal rise in March. Distribution In March distribution of commodities to consumers was sustained at the high level reached in February. Sales at mail-order houses and department stores increased seasonally and variety store sales showed more than the usual seasonal rise.' _ Freight-car loadings increased by about the usual seasonal amount. Loadings of coal and grain rose considerably, while shipments of miscellaneous freight, which in previous months had risen steadily, on a seasonally adjusted basis, showed a smaller increase than is usual at this time of year. Commodity Prices Bureau of Labor Statistics’ indexes, 1926 = 100. “Other” includes commodities other than farm products and foods. By weeks, January 5, 1935 to week ending April 12, 1941. MEMBER BANKS IN I0I LEADING CITIES Prices of basic commodities continued to advance sharply from the middle of March to the middle of April. There were substantial increases in prices of domestic foodstuffs and further advances in burlap, cotton, rubber, and lead. Increases were also reported in wholesale prices of a number of manufactured products and the general index of the Bureau of Labor Statistics rose two points to 83 per cent of the 1926 average. _ Informal action was taken by the government to discourage price increases of some additional industrial materials and maximum price schedules were established for steel, bituminous coal, secondary and scrap aluminum and zinc, and iron and steel scrap. Sharp reductions in prices of some kinds of nonferrous metal scrap re sulted. Announcement of an expanded federal purchase program for hog, dairy, and poultry products was followed by price increases for these and related products. Bank Credit Total loans and investments at reporting member banks in 101 cities increased during March and the first two weeks of April. Commercial loans continued to rise substantially, and holdings of United States Government securities increased further, reflecting purchases of new Treasury offerings. United States Government Security Prices Wednesday figures, January 2, 1935 to April 9, 1941. Commercial loans, which include in dustrial and agricultural loans, represent prior to May 19, 1937 so-called “Other loans as then reported. Page Eight Prices of United States Government securities declined irregularly from March 15 to April 9 but subsequently rose slightly. The 1960-65 bonds showed a net loss of about % of 1 point on April 15, following a rise of about 3% points in the previous month. The yield on this issue on April 15 was 2.14 per cent, compared with 2.03 per cent at the all-time peak in prices on December 10, and 2.30 per cent at the recent low in prices on February 15. *.
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