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busine ss 1 view THE COW: A SOURCE OF HEALTH Milk is a complete food. It contains protein, carbohydrate, fat, . m inerals, vitamins, and water. M oreover, it is a delicious beverage when fresh and cool. Yet, the average Am erican consumes less than a pint a day. Don't cow bells ring loud enough? CURRENT TRENDS Production workers' earnings in Third District factories have recovered most of the ground lost in the recession. Employment has been rising at a much slower pace. Additional copies of this issue are available upon request to the Department of Research, Federal Reserve Bank of Philadelphia, Philadelphia 1, Pa. A SOURCE OF HEALTH Time is a succession of days linked together by we do. So do the Norwegians, Canadians and the nights— at least so it seems to us, and perhaps to Danes. The French, Belgians and Italians drink a cow. And so dawn breaks over the Eastern less milk than we do. Seaboard. Before the sun is house-high and has Everybody knows that milk is the nearest ap yet some dew to mop off the grass, the farmer has proach to the perfect food. The human body needs already milked his cows. His wife has finished the a balanced diet. No one food meets that require washing-up in the milk house; his children have ment, but milk comes closest. Yet people consume fed the chickens and have a few more chores to do it so sparingly. Is it because milk is too expensive? Is it too before they slick up for school. The metropolitan housewife preparing hard to get? Is its quality unreliable? Is it too breakfast. The kitchen door opens a wee bit. An little advertised? Don’t people like it; or do people tank up and fill up with so many other kinds of is arm, clad in the sleeve of a robe, reaches out to retrieve from the doorstep the morning paper, the food and drink that there just isn’t enough room morning milk, and perhaps a little bottle of cream. left in American stomachs for more than about A a pint of milk a day? frantic voice from upstairs calls: “ Mom! Where’s my green ribbon ?” With one hand, Pop The April Business Review explained why so wipes the egg off his chin while the other hand much milk is being produced. This issue will ex pours milk on his cereal. Junior, now taller than his plore why so little milk is consumed. Dad, is pawing and muttering through a drawer M ILK in search of a particular pair of socks. But fi nally the house is silent. Mother pours cream in her coffee, and heaves a sigh of relief. Another W h a t’s in it? day has begun. Let us take a cup of milk apart to see what is in Less than a pint of milk a day— that is what it. To begin with, milk as it comes from the cow the average American citizen consumes. A pint is about 87 per cent water. Now, if that were is two cups. the end of the story, milk at 22^ Less than two cups of milk per person a day. The Swiss and the Swedes drink more milk than cents a quart would indeed be an expensive way to slake your thirst. (Incidentally, numerous other beverages 3 b usin e ss re v ie w many calories in so little weight. The chief virtue that come in bottles contain as much or more water at similar or higher prices.) Water in milk, of milk, however, is its completeness as a food, however, serves as a vehicle for some invaluable containing as it does protein, carbohydrate, fat, ingredients. The other 13 per cent consists of minerals, and water. solids— good, healthy, body-building solids. Milk, next to the white of an egg, is the best The solids fall into two classes: fats and non source of protein — and what is so tasteless as fat solids. Fat makes up 3.9 per cent of the average the white of an egg, as Job observed long, long cup, which leaves about 9.1 per cent of nonfat ago! We have seen people, on a dare, pierce an solids. They are protein, 3.4 per cent; milk sugar, egg and drink it We prefer to drink milk. The 4.9 per cent; and ash, 0.7 per cent. These numbers protein in milk has high nutritive value and is come right out of a publication entitled “ Milk,” easily digested. A.I.B. 125 (which in this instance does not stand The fat, curiously, receives so much emphasis for American Institute of Banking, but rather when milk comes out of the cow and so little em Agriculture Information Bulletin of the United phasis when milk goes into the consumer. Milk States Department of Agriculture). So much for fat is easily digested, is already in emulsified form, the simple chemistry of a cup of milk. and is readily absorbed by the body. If you would Turning from chemistry to dietetics, we find like to know how much fat you should consume, that a cup of milk supplies 166 calories of food we think it advisable to consult a physician rather energy. Very few foods come loaded with so than a bank. NUTRIENTS AVAILABLE IN THE NATIONAL FOOD SUPPLY, 1952* Contributions of Four Major Food Groups FRUITS & VEG. DAIRY P R O D U C T S ** PER CENT OF TOTAL NUTRIENT ■* U N IT E D S TA TES ^ ^ EX CLU D IN G C O N S U M P T IO N B U TTER S O U R C E : U N IT E D 4 C IV IL IA N S TA TES D E P A R TM E N T OF A G R IC U LTU R E EGGS, MEAT POULTRY, FISH GRAIN PRODUCTS b u sin e ss re v ie w Milk sugar, or lactose— if you prefer the fancier tion. So in more ways than one the cow is a source term — is said to be less sweet than cane sugar, of health. easily digested, and does not irritate the digestive system. Milk is the best source of calcium needed From cow to consum er by children to build bones and teeth, and needed In some parts of the world, cows are led from door in large quantities by pregnant women and nurs to door to deliver milk directly into the pail of ing mothers. the consumer. That system assures delivery of Milk also contains health-giving minerals and strictly fresh but not necessarily wholesome milk. vitamins. It is one of the best sources of ribo Here in this country we have a much more elabo flavin, one of the B vitamins, and in somewhat rate system of distribution and what our milk lesser quantities milk contains vitamin A, thia lacks in freshness, compared with the primitive mine, niacin, ascorbic acid, and iron. The relative system, is more than made up by complex con importance of these ingredients available in dairy trols to guarantee wholesome milk. products is shown in the accompanying chart. In Pennsylvania, as elsewhere, it has long been Note how much calcium and riboflavin dairy the custom of farmers to haul their milk in 40- products contribute to the national food supply. quart cans to a central collecting point where the The dietary cycle of man, from cradle to coffin, cans were picked up and taken to a processing always begins with milk and often ends with milk. plant. With ever-increasing installation of cold In between are stages like milk and vegetables; wall tanks at dairy farms, more and more milk steak, french-fries, ham and eggs, coffee; pate de fois gras, caviar, Scotch, coffee and patisserie; rides to the processing plant in huge tank trucks somewhat resembling oil trucks except for the milk and crackers. If he escapes the cardiac cor word “ Inflammable” across the back end of oil ridor, the chances are he winds up with just milk trucks to warn the impatient motorist following — cow’s milk. Qualitatively, there is no significant without air brakes. A milk tank truck is a motor difference between the human milk he drank upon ized thermos bottle. arrival and the cow’s milk he shifted to later. A city milk processing and bottling plant does a job that scarcely deserves the term “ manufactur A p ath o lo gical note ing.” Indeed, the trade does not so refer to it. In our mid-20th century mad pace of life, most What you see when going-through such a plant are people tear around so furiously that they have no big tank trucks air-braking perhaps 13,000 lbs. time to think but apparently have time to worry. of milk to a halt at the receiving platform, and a Be it the hurrying or the worrying or both, the fleet of retail and wholesale delivery trucks fact is so many people develop ulcers that business scampering away in all directions from the ship executives are sometimes facetiously classified on ping platform. Between these extremes is a stain- the basis of the number of ulcers they have. less-steel symphony in sanitation. Milk is the backbone for dietary treatment of You see heads of refrigerated storage tanks, ulcers. The fluid has therapeutic qualities which also pipe lines, pasteurizing tanks to kill harmful help heal and may even increase the resistance of bacteria with 15-second flash of heat at 160 de the mucous membrane of the stomach to ulcera grees Fahrenheit, huge mechanical bottle washers, 5 b usin e ss re v ie w miles of power conveyors, bottling machines, MILK UTILIZATION empty bottles and full crates on parade, hydraulic (Year ended March 31, 1955) B illio n p ounds lift trucks, workers in white, milkmen with order forms, framed licenses and permits aplenty on office walls, and endless washing, scrubbing, and rinsing. What you don’t see is milk, almost. It is forever traveling through pipes or resting in refrigerated tanks or cold storage rooms. No one ever touches it. The plant is also equipped to homogenize milk, T o ta l p ro d u c tio n .............. P.!\ . . . . . . . . Fed to c a lv e s ....................................... T o ta l fo r hum an u se.................................... F luid m illt a nd c r e a m ........................ B u tte r ..................................................... C heese .................................................. Ice c r e a m .............................................. E v a p o ra te d , c o n d e n s e d , a n d d ry w ho le m ilk ....................................... Per c e n t 123 3 120 60 32 13 8 100 3 97 49 26 11 6 7 5 to make light and heavy cream, chocolate milk and able products went into storage under Govern drink, buttermilk, and numerous other dairy prod ment loan; but this is not the appropriate place to ucts; but usually not such things like evaporated go into that. and condensed milk, butter, and cheese. The latter products are customarily manufactured at country manufacturing plants. CONSUM ER USES O F D A IR Y PRODUCTS Milk is older than leather because herdsmen ante Pennsylvania milk, in line with milk from the date tanners. There are no antediluvian records of Northeast generally, goes to market for the most per capita milk consumption, so we must be con part as fresh, fluid milk. Wisconsin milk, in line tent with more recent Department of Agriculture with milk from the North Central region, goes to reports. market more in the form of butter, cheese, and Take the past quarter-century. Crowded into other manufactured milk products, rather than as those years have been the country’s worst business fresh, fluid milk— as mentioned in the April Busi depression, a major and a minor war, great social ness Review. This should be kept in mind as we and technological changes, and rising standards of survey the entire milk market of the country. living. And what has happened to milk consump tion? Annual per capita consumption in terms of The United States “ M ilky W a y ” total milk equivalent declined from 800 to 700 In the year ended March 31, 1955, the country’s pounds. total milk production was 123 billion pounds. During the depression of the thirties, consump Calves got only 3 billion pounds which left 120 tion of dairy products held up very well. World billion pounds for man. This is the way it went to War II had adverse effects. Money was abundant, market. Almost half of it was used in the form but milk was not. It was rationed, price con of fluid milk and cream. Slightly over one-fourth trolled, and put on every-other-day delivery. In went into butter, over one-tenth into cheese, and the early post-war period, people were more in smaller amounts into other products, as shown in terested in automobiles, radios, refrigerators, TV, the following table. Utilization, by the way, is not necessarily con and other things of which they had been deprived during the war even more than dairy products. sumption. Not all dairy products produced last In more recent years when most things, includ year were consumed last year. Some of the stor- ing money, were abundant, demand for dairy 6 busii le w ANNUAL PER CAPITA CONSUMPTION OF DAIRY PRODUCTS* POUNDS 1929 '3 4 ^G A LLO N S SOURCE: UNITED '39 '4 4 '49 '5 4 1929 '3 4 '39 '4 4 '49 '5 4 STATES DEPARTMENT OF AGRICULTURE 7 b usin e ss re v ie w products has continued to lag. What has been 250 miles away; that it was pasteurized and per happening to the over-all demand for dairy prod haps homogenized, and tested for bacteria count. ucts becomes clearer upon examination of trends There is almost endless testing and inspecting in consumption of the major milk products. This from cow to consumer. is portrayed by six lines showing the past quarter- Moreover, if he is a Philadelphian, he may not century trends for six major milk products. For know what the price is and that both the Federal purposes of comparison, a line representing con and state governments have a hand in determining sumption of all dairy products in terms of wholemilk equivalent is also shown. All lines are in what he pays for his milk. The chances are, how ever, his wife knows some of these things. terms of per capita use and they are plotted on a Per capita consumption of fluid milk and cream scale designed to show percentage changes. Thus is higher now than it was 25 years ago, but not the steepest incline shows the highest rate of much higher. In 1929 it was 340 pounds and last growth. year it was 352 pounds. Actually, what the line for For a summary interpretation, it might be said both fluid milk and cream does not reveal, is the that the record looks good for cheese, ice cream, fact that in recent years, consumption of fluid milk and nonfat milk solids. It looks only fair for has been going up and consumption of fluid cream evaporated milk, fluid milk and cream. And it has been decreasing. There is an old saying, “ a looks bad for butter. Now, a few words about pint is a pound the world around,” but actually a each. quart of milk weighs 2.15 pounds. Hence, 352 pounds a year would be about 0.9 pint a day. Al Fluid m ilk and cream lowing for the milk that is used in cooking and These are the most important dairy products for baking, it is apparent that people drink consider several reasons. To begin with, fluid milk and ably less than a pint a day. cream rank first in poundage of consumption. Why don’t people drink more milk? This ques Second, these products bring money income even tion has received much “ head scratching” and re greater than their poundage bears to total pound search. There seems to be no simple answer. Cer age of dairy products because of a unique pricing tainly, it cannot be because of any deficiency in system. Fluid milk that goes to market for con health-building quality of the beverage. Its health sumption as fluid milk must get there fast, and fulness is incontrovertibly documented by com requires special handling and testing. Therefore it petent authorities completely divorced from the dairy industry. commands a higher price than milk used for man ufacturing (into butter, cheese, etc.) which is considered and called “ surplus milk.” Fluid milk is what the average man thinks of Furthermore, it is doubtful that milk in most markets fails to measure up to required standards of quality. A Chester County dairy farmer, speak when he sees milk on the menu, on the doorstep, ing about his efforts to get his milk into the best in the refrigerator, or on the dining table. To him market at the best price, said: “ The milk must be it is just that— milk— nothing more and nothing fresh, taste good, smell good, must be free of sedi less. He probably does not know that it came ment, have adequate butterfat, and low bacteria from Brucellosis and tuberculin-tested cows 50 to count.” Some of these things the consumer can 8 b u sin e ss re v ie w judge for himself; and matters like fat content and Administration, nonfat dry milk solids may con bacteria count, competition and public health tain not over 5 per cent moisture and not over 1.5 authorities take care of. The question might well per cent milkfat by weight. be asked, when, if ever, did you get bad milk delivered to your home? Dry skim milk is the fastest growing dairy prod uct. Annual consumption per capita rose from What about the price? Is milk too expensive? one to almost five pounds, as the chart shows. It How much more milk would be consumed if the is made by several methods one of which is spray price were reduced? This is another subject that ing partly concentrated milk into a chamber of hot has received a great deal of attention and research. air. This milk is easy to store and transport and, It is true that wealthy families consume more milk in terms of milk solids, is cheaper than fluid skim than poorer families. But it is surprising to learn milk. how many housewives do not know what the cur Fine, white, and soluble, dry skim milk comes rent price of milk is per quart and how many do in bulk and in packages of assorted sizes, includ not seem to care. ing individual envelopes containing the quantity Most of the studies designed to find out how recommended by the manufacturer for one quart changes in the price of milk affect its consumption of reconstituted nonfat milk. It is used commer show that rising prices discourage consumption cially in large quantities by bakers, meat proces and falling prices encourage consumption, but sors, confectioners, and by some ice cream manu not much. Though one should not put too much facturers. It is also an ingredient in prepared faith in figures, some market studies show that it mixes for baked products, puddings, frozen des takes about a 4 per cent change in price, upward serts, soups, and infant foods. or downward, to bring about a converse 1 per cent change in consumption. It takes a really big re Evaporated m ilk duction in price to bring about a sizable increase Evaporated milk is a concentrated, sterilized in demand. That being the case, reducing the product made by heating homogenized whole milk price, assuming it can be done, has its limitation in a vacuum to remove about 60 per cent of the as a means of increasing consumption. water, then sealed in cans and sterilized. Most of The fat in milk is another problem. We are liv ing in an age of girth-consciousness. Some people the evaporated milk on the consumer market has vitamin D added. shy away from milk in the hope of stream-lining This milk product sells in larger quantities, but themselves down to some real or imaginary ideal its past quarter-century rate of consumption has of configuration. So here is where nonfat, dry been slower than dry skim milk. Annual per milk solids come into the picture. Look at the capita consumption rose from 11 pounds in 1929 line on the chart. to a peak of 18 pounds in 1948, and has since re ceded to the 15-pound level. For home use it can N o n fa t d ry m ilk solids be bought in 14% ounce or little six-ounce cans. This is a long handle, promulgated by an Act of The product is easily transported and stored. A Congress, for what most other people call dry skim can to make a quart of fluid usually sells for less milk. As defined by the Federal Food and Drug than a quart of market milk. 9 b usin e ss re v ie w Cheese Cheeses Now, here’s something! may be divided into four general Cheese comes in more classes: Very hard, like Parmesan; hard, like variety, talks louder, and travels farther than any Cheddar and Swiss; semi-soft, like Brick and other dairy product. Furthermore, cheese is do Roquefort; and soft, like Camembert, Cream, and ing right well, trend-wise, as the chart shows. The Cottage. Limberg is a soft cheese that announces increase in annual consumption per capita from its presence. Cup cheese is a soft cheese that runs 4.6 pounds in 1929 to 7.7 pounds in 1954, though like butter. not spectacular, nevertheless is very good, percent age-wise. Cheese is our chief dairy import but In the United States, cheese is generally made from cow’s milk — whole or skim. Cheese is the much cheese is manufactured in this country. curd of milk, separated from the whey by coagu lating the milk. On the market are to be found cheeses under After separation, the curd is stirred and heated and the whey drained off. several hundred different names, but according to method of manufacture or the locality there are Many cheeses are “ cured” ; that is, ripened or only about 18 distinct types. Even that is too much aged by holding the cheese for a definite time at a to detail here. certain temperature and humidity. During these BUTTER AND MARGARINE CONSUMPTION* RETAIL PRICES POUNDS 1920 1930 1940 1950 * P E R PERSON SOURCE: UNITED STATES DEPARTMENT OF AGRICULTURE 10 busim processes, flavor and texture are developed by the year was 13 per cent above the 1948-1952 average. action of bacteria or molds. To meet Federal Butter of high quality has a pleasing aroma and standards, most cheeses must be made from pas a fresh, sweet flavor. The texture is smooth and waxy so that it spreads readily without crumbling. teurized milk. The color is uniform throughout and the salt, if Ice cream added, is dissolved and evenly distributed. For Ice cream is as Philadelphian as Independence cooking purposes, many women prefer it to vege Hall. Ice cream, invented a century ago, first ap table fats. peared as a delicacy but has long served as an Such, in brief, are tbe trends in consumption important food. It is a frozen mixture of cream or of the major dairy products. Some of the minor butterfat, non-fat milk solids, cane, beet, or corn products, not considered, are condensed milk, but sugar, flavor, and sometimes egg yolk solids, and termilk, chocolate milk and drink, dried whole perhaps a stabilizer. milk, acidophilus milk, and Yoghurt. In the off Consumption per capita fell sharply during the depression of the thirties, subsequently rose to a ing are products, such as, sterilized or concen trated milk and other dairy products. peak in 1946, and eased off thereafter. Ice cream Though the fortunes of the several major dairy is encountering competition from other frozen products vary, consumption of milk and milk desserts made out of vegetable fats. They look like products, as a whole, is not growing as might be and taste like ice cream. Not new, they neverthe expected. The plain fact is that people do not con less received a boost during World War II butterfat shortages and they have been growing rapidly. sume as much milk as cows produce. A big advantage in their favor is that they cost less HERE’S TO YO U R HEALTH The question is, can people be induced to use more than ice cream. milk? Can they be persuaded to buy more health? Butter Can we drink up and eat up the surplus? Butter really took a slide. Per capita consumption declined from 17 pounds in 1929 to 9 pounds last H ealth fo r sa le year. The reason, as everybody knows, is the com One of the numerous associations of the milk petition of margarine— a spread made from vege trade budgeted $4 million this year to advertise table fat. Margarine has long under-sold butter, dairy products by television, radio, magazines, and when butter prices went skyrocketing during and newspapers. Big-time entertainers with glass the post-war and Korean days, margarine came of milk in hand are appearing on TV screens for into its own. The shift was aided by repeal of the benefit of adults, animated cartoons for chil laws formerly standing in the way of margarine. dren, milk-vending mirth makers for all ages. This Some observers feel that butter will stage a program is supplemented with serious talks by comeback and they point to the fact that per professors and magazine advertisements in color capita consumption rose from 8.6 pounds in 1953 of dainty dairy dishes. Ice cream, cheese, and to 9.0 pounds in 1954. In further support of other dairy products are included in the promo that view they cite the fact that production last tional campaign. Surely some prominent athletes 11 busin e ss re v ie w and actresses drink milk. They should not be over rasher of bacon. An extra bag of peanuts. An ex looked. tra . . . Hold it. Too much health is unhealthy. The dairy surplus, it is said, would disappear The daylight-saving-time sun set about two rapidly if every American would drink one extra hours ago. Dad fell asleep in his favorite living glass of milk every other day. That sounds simple room chair while looking at TV. Mom is putting enough, but the person who thought of that one the finishing touches to the alteration of a gradua probably did not think of the other surpluses. The tion gown. Junior is raiding the refrigerator for wheat surplus is bigger than the dairy surplus. Perhaps the wheat surplus could be made to dis a goodnight snack. A voice from the seamstress, “ Don’t drink any milk. We have only a quart and appear if every American ate an extra slice of a half and we need that for breakfast.” Tomorrow bread daily. And we have a corn surplus; an extra is a day of no delivery under every-other-day. CURRENT TR E N D S Business recovery continues through most sectors similar and the employment loss was 11 per cent of the economy in the Third Federal Reserve Dis in both cases. But in the past nine months the trict. Retail sales, construction — particularly in number working at factories in this district has the field of homebuilding— and weekly earnings risen only fractionally, while at the national level of production workers in factories all reflect the there has been an increase of approximately 4 per increasing buoyancy that first appeared last mid cent. About two-thirds of the country’s gain oc year. But manufacturing employment remains one curred during the second half of 1954, when fac area that has been slow in responding to the over tory employment locally was about holding its all improvement in economic activity. own. In recent months, at least, this dissimilarity Because factory employment, earnings, and in trends has been accentuated by the rapid re working time play such a decisive role in deter covery in basic steel and automobiles, both rela mining economic trends, it seems appropriate to tively more important in the country than in this take a closer look at what has been happening in district. these areas since the business recession “ bottomed out” some nine months ago. R ecovery in h e av y goods has been spotty Em ploym ent has risen m ore n a tio n a lly than lo cally when the recession came. In this district they suf Durable goods producers were the hardest hit fered an employment loss of 14 per cent from the Recessionary forces had about the same impact fall of 1953 to mid-summer of last year. Further on factory employment in this district as in the small declines in each of the first two months of country generally. From the peak of September 1955 were followed by only a fractional increase 1953 to the low point in July 1954, trends were in March. 12 b u sin e ss re v ie w But this is not to say that individual lines in the level about 1 per cent above last summer’s low heavy goods division have all lagged in the matter point. of recovering some of their employment losses. Among individual lines of nondurables the most In electrical machinery, where the earlier decline pronounced changes from June 1954 to March exceeded 20 per cent, the number employed rose 8 1955 were in foods and apparel, both of which are per cent between June 1954 and March of this subject to wide seasonal swings. So, some of the year. And in stone, clay, and glass products em implications of a 6 per cent employment decline ployment was up 6 per cent. Minor increases rang in foods and an increase of like amount in apparel ing from 1 to 3 per cent also have occurred in pri should be discounted. Both rubber and leather mary and fabricated metals and in industrial in producers, however, raised their employment struments. about 3 per cent, and gains of 1 per cent have oc The transportation equipment and nonelectrical curred in such lines as petroleum, chemicals, and machinery lines experienced the most severe em printing and publishing. The number employed ployment cutbacks in the nine months ended in textiles has not changed significantly in the March 1955, reporting losses of 11 and 5 per cent, past nine months. respectively. Transportation equipment has been September 1953, principally because of the low On an a re a basis there is considerable variatio n level of activity in shipbuilding and the furlough In most industrial areas, employment lows were of workers in railroad car building and repair shops. Machinery builders, too, have continued reached about the middle of last year, although in places like Philadelphia, the Lehigh Valley, Lan particularly hard hit over the whole period from to reduce their working forces because of the in caster, and Scranton these levels were repeated in terrupted flow of orders. In this industry, lead January 1955. Factory employment in the York times are much longer than in some others. Thus and the impact of the recession was not felt so quickly, after the turn of the year. In the past two months, Delaware areas touched bottom shortly but by the same token a resumption in ordering employment increases have not been sharp in any takes more time for translation into increased em ployment. gains have been a source of encouragement in the of the ten major city areas. But small successive Lehigh Valley, Lancaster, Wilkes-Barre, Reading, In n on d u rab les, ga in s also have been sm all but on a b ro a d e r front and Trenton areas, where March employment was Producers of soft goods began cutting back em year. measurably above the lowest points reached last ployment a little later than durable goods manu more moderate. In this division, the number of W o rkin g tim e has increased much m ore than em ploym ent employees was reduced by 8 per cent from Sep When order volume begins to slacken, employers tember 1953 to about mid-year 1954. Small ad shorten hours before they cut back employment. ditions to working forces during February and And as business picks up, working time is length March were sufficient to raise the employment ened for the employees remaining on the rolls. facturers, and in most cases the declines were 13 b usin e ss re v ie w This seems to be axiomatic. It is exactly what nondurable goods lines than for those employed happened early in 1953, some months before em in durables. The main factor in the advance in ployment turned down. The procedure was re average weekly income has been the increase in versed just about a year later with a sharp rise in working time. Average hourly earnings, however, working time preceding a very modest recovery in have continued to rise, reflecting both higher rates employment. In this Federal Reserve District, average weekly hours for production workers have of pay and a lengthening of the work week to in clude more overtime. risen 5 per cent above the low point of April 1954, and are little more than 2 per cent under the pre NEW PAMPHLET AVAILABLE recession high reached in March 1953. Average A brief and simplified description of The Funda mentals of Federal Reserve Policy has been pre pared and is now available. This pamphlet— an abbreviated version of a flannel-board presentation— contains a dozen illustrations with accompanying text. It deals first with the problem of economic stability, then with the nature of the credit market, the role of com mercial banks, and finally with the role of the Fed eral Reserve in influencing the money supply. Copies for classroom and other uses are avail able upon request to the Department of Research, Federal Reserve Bank of Philadelphia. \vorking time has made a more impressive re covery among producers of nondurables than in in the durable goods lines. Em ployee e arn in gs have m ade the best recovery o f all Average weekly earnings of production workers have shown a sharp and almost uninterrupted rise since the spring of last year. In March, they were almost 7 per cent above their 1954 low and ex ceeded the 1953 peak by 2 per cent. Earnings on this basis have risen more sharply for workers in 14 THIRD FEDERAL RESERVE DISTRICT F O R THE R E C O R D . . . INDEX b il l io n s AGO AGO 1955 * MEMBER B A N K S 3R D ER.D. AGO AGO Factory* Third Federal Reserve District Per cent change SUM M ARY United States Per cent change M arch 1 955 from mo. ag o year ag o 3 mos. 1 955 from year ag o M arch 1 9 55 from mo. ago year ag o 3 mos. 1955 from year ag o LO C A L CHANGES EM PLO YM EN T A N D IN C O M E Factory employment ( T o t a l) ... + 1 + 2 Lo a n s............................................ Investments.................................. U .S. G ovt, se curities.............. O t h e r ......................................... C h e ck payments........................ - 4 +20 + 1 + 7 +34 +12 - 4 0 - 5 2 + 1 + + 5 1 + 5 + + 1 2 0 - 1 8 2 + +1 -1 -6 - 1 + 3 - 3 - 3 - 2 +22t + 3 + 8 + 3 - 1 +13 + 7f — + - + + 2 2 3 4 1 +20 + 4 + 8 + 8 + 6 +13 + 4 + 5 + 7 + 8 + 7 +13 + 5 ot 0 0 0 0 0 1 0 R e a d in g .......... + 4 + 7 + 5 + 1 +16 + 8t 0 +1 Trento n........... +1 W ilke s-B a rre . + 2 W ilm ington.. . + 1 ot + 1t f2 0 C itie s tPh ila d e lp h ia - Sale s year mo. ago ag o Stocks Y o r k ................. + 2 year mo. year mo. ag o ag o ag o ag o year ago +4 + 4 +19 + 4 +3 - 1 +24 + 3 +3 + 4 +47 +10 + 8 + 4 +15 + 5 +1 - 2 +19 + 6 0 +21 6 +3 + 4 + 2 6 + 1 6 +11 0 + 22 +11 -1 - 2 +21 + 1 0 + 8 +14 + 1 -1 + 8 +22 +14 +15 + 4 - 1 + 4 +5 - 2 + 2 8 +21 +11 + 1 3 +11 - 3 +3 + 1 1 + 50 + 1 3 + 2 3 - +3 - 8 La n c a ste r. . . . + 1 P h ila d e lp h ia . 2 0 'B ase d on 3-month moving averages. '•A d ju sted for seasonal variation. 16 + 9 +36 +18 year mo. ago ag o 0 PRICES Consum er.................................... + 2 +15 - 9 Payrolls Per cent Per cent Per cent Per cent Per cent change change change change change M arch M arch M arch M arch M arch 1955 from 1955 from 1 955 from 1 955 from 1955 from Scran to n ......... TRADE" Department store s a le s ............ + B A N K IN G ( A ll member banks) - 2 +14 + 6 Department Store C h e ck Payments Employ ment mo. ago OUTPUT Manufacturing production . . . + 2 Construction c o n tra cts'........... + 1 3 C o a l m ining............................... - 1 1 1955 0 -5 0 -3 0 -3 0 -5 5 +25 + 8 + 8 + 9 +16 + + 3 +67 +26 3 +19 - 7 'N o t restricted to corporate limits of cities but covers areas of one or more counties.
@FedFRASER