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// o THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT MAY z, 193Z By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Industrial activity was in smaller volume in March than in February al though usually little change is reported at this season, and the number of em ployees at factories was also reduced, contrary to seasonal tendency. Vol ume of reserve bank credit decreased in March but showed a considerable growth in the first three weeks of April. Money rates continued to de cline. Production and employment. Output of industrial products as measured by the Board’s seasonally adjusted index, declined from 70 per cent of the 1923 1925 average in February to 68 per cent in March. Daily output at steel mills and automobile factories de creased, contrary to seasonal tendency, and activity at woolen mills declined sharply to the lowest level in recent years. Cotton consumption by domes tic mills continued at the February rate, although sales of cotton cloth declined, and output of shoes increased considerably; in both these industries production was at about the same rate as a year ago. Activity in the lumber INDUSTRIAL PRODUCTION industry, which recently has been at a level about 45 per cent lower than last year increased by more than the usual seasonal amount. Output of coal also increased considerably during March but declined in early April. Volume of factory employment and payrolls decreased from February to March, although an increase is usual at this season. There were substantial reductions in working forces in the steel, automobile, machinery and fur niture industries as well as at woolen and silk mills while clothing and shoe factories showed additions to their working forces. Value of building contracts awarded, as reported by the F. W. Dodge Cor poration, showed some increase of a seasonal character during March and the first half of April, and was ap proximately one third as large as last year. Rail shipments of mer chandise, which ordinarily increase in March, showed little change and sales at department stores in leading cities increased by less than the estimated seasonal amount. Wholesale prices. The general level of wholesale commodity prices showed little change between February and March according to the Bureau of Labor Statistics. In the first two weeks in March prices of many com modities including livestock and meats, advanced; between the middle of March and the third week in April, prices of cotton, silk, wool, hides, sugar, silver and tin declined consider ably while prices of coffee and peFACTORY EMPLOYMENT AND PAYROLLS Payrolls Distribution. Indexes of factory employment and payrolls^ without adjustment for seasonal variation. (1923-1925 average =100.) ... ^ RESERVE BANK CREDIT and FACTORS m CHANGES RESERVE BANK CREDIT MlLllC N5 or 00UMS IS 00 V \J s/ r /'•'V Discounts A- jJ u— U S Scci AcSOZ 1926 Monthly averages of daily figures. Latest fig ures are averages of first 21 days in April. V / 0 Index number of industrial production, ad justed for seasonal variation. (1923 1925 aver age = 100.) k. 5 1929 1930 V 1931 1932 Monthly averages of daily figures for 12 Fed eral reserve banks. Latest figures are averages of first 21 days in April. Page One troleum increased. Wheat prices showed wide fluctuations but were at about the same level in the week end ing April 23 as in the first half of March. The Federal Reserve System’s holdings of United States government securities, after increasing continuously from early in March, totaled $1,078,000,000, on April 20 an increase of $338,000,000 since the end of February. This increase has been accompanied by some further decline in the reserve banks’ holdings of ac ceptances and a reduction of $264,- Bank credit. 000,000 in discounts. Member bank indebtedness to the reserve banks showed a considerable reduction in all of the Federal reserve districts. Total volume of reserve bank credit outstanding, which had declined in March reflecting a continued return of money from circulation and an in crease in the country’s stock of monetary gold, increased by $115,000, 000 during the first three weeks of April. This increase was accompanied by a substantial growth in member bank reserve balances. Total loans and investments of re porting member banks in leading cities continued to decline during the five weeks ending April 13. At banks in New York City, however, there was an increase in investment holdings both of United States government securities and other securities offset ting the decline in loans which con tinued Until the middle of April. Open market rates for bankers’ ac ceptances showed successive reduc tions and on April 21 the offering rate for 90-day bills was % of 1 per cent, the same rate as prevailed between May and September 1931. Rates on commercial paper also declined. Business and Financial Conditions in the Philadelphia Federal Reserve District Business continues to show a lack of the improvement which commonly takes place at this season. Industrial production and building activity in March fell behind the usual level esti mated for this month, and further cur tailments in manufacturing were evi dent in early April. Retail and wholesale trade also failed to equal the expected volume. Employment and payrolls in most of the leading lines of trade and industry showed re ductions between February and March. General business activity in the first quarter of this year reached the lowest level in the past decade and the opening of the second quarter has been equally disappointing, save for the reduction of merchandise stocks. Commodity prices have moved down ward, although the rate of fluctuations has been less pronounced than in the past two years. Another month has passed un marked by the closing of a bank in this district. Member banks report further declines in loans to customers. Borrowings from the Federal Reserve Bank again were reduced, owing chiefly to repayments by Philadelphia banks, and are at the lowest point since last October. Sales of manu factured products have declined fur ther, and the current demand is quiet. Prices again declined fractionally in March and showed weakness in the Manufacturing. Page Two first three weeks of April. The level per cent, while the decline of 32 per of both demand and prices continues cent in local payrolls was about one to be the lowest in many years. Most point greater than that for the country. of the reporting manufacturers also Metal products, transportation equip show a decline in collections since the ment, and some of the building ma middle of March and as compared terials showed the sharpest reductions from a year ago in both employment with last year. Unfilled orders , held by factories and payrolls. Production of manufactures showed have declined in the month, even though there are isolated reports of an exceptionally large decline in some slight gains in certain lines of March. Our preliminary composite manufacture. Stocks of finished goods index number, which takes into ac are comparatively light, there having count the usual seasonal gain that been further declines since February. occurs in March, stood at over 63 per This is also true of the holdings of cent of the 1923-25 average, a decline raw materials. Compared with other of almost 6 per cent from February; years, factory stocks of both classes of the national index at 65 registered a drop of 4 per cent. In comparison commodities appear to be smaller. Contrary to the usual seasonal trend, with a year ago, the decrease in the factory employ ment in this sec INDUSTRIAL PRODUCTION tion was over 2 PHILADELPHIA FEDERAL RESERVE DISTRICT per cent smaller PERCENT in March than MANUFACTURING February and wage payments were 5 per cent less; the decline in the country amounted to al most 2 per cent i n employment COAL MINING and 3 per cent in payrolls. Com pared with a year ago, both local and national em ployment showed 1932 1931 1930 1929 1928 1927 a decrease of 15 district index amounted to 22 per cent and in the national index 25 per cent. Output by local plants during the first quarter was 17 per cent less than at the same time last year, the sharpest curtailment occurring in the produc tion of metals, building materials, to bacco products, and paper and printing. Exceptionally large declines in the month took place in the output of transportation equipment, metal and chemical products, radio and musical instruments, and tobacco and its prod ucts. Factory output of some prod ucts such as shoes, carpets and rugs, brick, and sugar, on the other hand, was larger than customary. In com parison with March 1931, groups com prising metals, building materials, tobacco products, chemicals, paper and printing, transportation equipment, and radio and musical instruments sustained the largest losses. The majority of individual lines of manufacture in this district showed further reductions in their operating schedules during March and in early April, according to some of the pre liminary reports. As indicated by the table on the last page, most lines also had a considerably smaller amount of business in the first quarter this year than last. There are, however, a few exceptions; among these gains over last year, were those reported by the producers of automobile parts and bodies, hosiery, sugar, shoes, and by meat packers. The largest declines were shown by plants making iron and steel products, electrical apparatus, lo comotives and cars, brick, canning and preserving products, explosives, and by-product coke. Production of electric power was 3 per cent smaller in March than Feb ruary, but this decline was not as large as the average for past years. For the year to date, however, the generated output of electricity reported by ten Electric power Philadelphia Federal Reserve District Percentages are computed from daily averages Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Productive activity Index numbers—expressed in percentages of 1923-1925 average, which is taken as 100 Adjusted for seasonal variations Not adjusted Percentage com parison Mar., 1931 Feb., 1932 Mar., 1932, with Mar., 1932 Month Year ago ago 3 months Mar., 1932 1931 with 3 months 1931 Mar., 1931 0.0 - 1.8 + 14.8 - 3.9 -14.0 - 3.0 -25.2 + 14.3 - 7.5 - 1.1 + 2.9 + 1.0 - 7.9 -12.5 -12.3 + 3.1 - 5.6 + i.i - 5.8 - 5.8 - 9.6 +18.4 -12.6 - 6.9 -14.9 + i.i - 8.7 -10.2 - 2.6 Mar., 1932 81.2 67.3 63.4 - 5.8 -21.9 -16.9 81.8 68.0 64.1 Metal products.............................. Textile products............................ Transportation equipment.. . Food products................................ Tobacco and products............... Building materials....................... Allied chemical products......... Leather and products................ Paper and printing...................... Electric power output................ Elec. pwr. used by industries. 70.3 83.2 59.1 82.2 103.2 49.6 104.1 129.6 105.4 187.7 132.2 43.1 74.5 59.7 71.7 83.8 33.5 95.3 108.6 Q4.5 182.9 127.8 39.1 71.6 50.2 71.2 73.8 32.5 86.3 115.7 89.5 184.3 119.6 - 9.3 - 3.9 -15.9 - 0.7 -11.9 - 3.0 - 9.4 + 6.5 - 5.3 + 0.8 - 6.4 -44.4 -13.9 -15.1 -13.4 -28.5 -34.5 -17.1 -10.7 -15.1 - 1.8 - 9.5 -39.5 - 7.3 - 9.1 - 9.8 -17.0 -27.0 - 9.9 - 7.3 -13.2 - 0.8 - 6.8 71.8 86.9 62.8 81.6 95.2 43.0 104.5 132.8 107.5 191.5 125.6 43.5 80.4 60.4 70.9 70.8 27.8 94.6 115.5 94.5 193.9 126.5 39.7 74.8 53.2 71.3 68.1 28.1 86.7 118.7 91.3 188.0 113.6 Coal mining........................................... 72.4 61.7 68.4 + 10.9 — 5.5 -24.3 69.5 60.7 65.5 Anthracite......................................... Bituminous....................................... 72.8 69.9 64.1 47.6 70.8 53.9 + 10.5 + 13.2 - 2.7 -22.9 -23.3 -31.9 69.2 71.3 62.2 51.9 67.3 55.0 37.9 Contracts awarded t........................ 58.6 Permits for building........................ 11.8 10.6 Mortgages recorded in Phila. . . 40.2 27.0 Real estate deeds recorded in Philadelphia.................................... 62.9 58.5 Exclusive of Sheriff deeds (1930 = 100)................................ Sheriff deeds (1930 = 100).... Writs for Sheriff sales in Phila. 909.3 827.7 36.7 8.0 41.0 - 3.2 -32.2 +51.9 -37.4 -24.5 + 2.0 -45.0 -29.2 -33.1 55.7 13.4 41.8 30.7 9.1 29.2 34.9 10.1 42.6 57.0 - 2.6 - 9.4 - 3.5 62.9 58.5 57.0 - 7.1* -13.3* — 9 4* 84 1 -23.9* - 6.0* + 8 3* 110 9 +58.9 +44.6 +12.0 927.5 78 5 72 9 844.3 1341.6 82.0 78.9 75.3 84.8 53.6 60.6 59.0 69.9 59.7 64.9 58.3 70.0 72.7 146.3 88.7 57.6 125.5 52.3 55.9 120.3 51.5 + 3.8* +55 7* +30 2* 147 2 — 14. 1* +83 9* +109 9* 220 8 Factory employment Penna. . . . Factory wage payments Penna. 4.5* -33.6* —29 6* Building and real estate Distribution Retail trade—sales........................... 87.0 Retail trade—stocks........................ 76.3 Wholesale trade—sales.................. 80.4 Wholesale trade—stocks............... 84.1 Freight car loadings (Allegheny district)............................................... 76.5 Life insurance sales.......................... 131.8 New passenger auto registrations 79.2 1315.3 65.3 63.4 64.9 70.0 61.2 62.8 62.0 69.4 61.3 109.1 70.7 58.8 108.4 46.0 Business liquidations Number................................................... Amount of liabilities........................ Payment of accounts Check payments............................... Rate of collections (actual, not indexes) Retail trade..................................... Wholesale trade............................ 95.9 70.0 65.7 6.3 0.9 4.5 0.9 -29.7 -17.7 -22.9 -17.5 - 4.1 - 0.6 -34.9 -23.1 -17.8 -41.9 - - 6.1 -31.5 - 0.7 + 8.6 - 9 8 0.0 -24.4 -17.3 -22.1 - 7.3 -22.0 -28.5 69 7 94.0 70.7 64.4 29 6 54.2 26 9 49.9 54.2 Per cent change from Feb., 1932 + 0.7 Feb., 1932 Manufacturing—total..................... (000,000’s omitted in dollar figures) Generated output (10 systems) Hydro-electric................................ Steam.................................................. Purchased......................................... Adjusted’' index numbers make allowance for the usual seasonal changes which result from an uneven distribution of business between the months of the year. They are the most significant indexes because they show im provement or decline beyond the level usually to be expected. Mar., 1932, per cent change compared with Rated generator capacity............ Sales of electricity (11 systems) Lighting............................................. Municipal.................................... Residential and commercial.............................................. Power.................................................. Municipal.................................... Street cars and railroads . . Industries..................................... Industries (working days) . All other sales................................. Business Indicators Philadelphia Federal Reserve District Mar., 1931 Dec., 1931 Jan., 1932 Feb., 1932 Mar., 1932 Month Year ago ago Banking and credit Reporting member banks Loans to customers..................... Open market loans and in vestments .................................... $801 $716 $710 $702 $693 - 1.3 - 13.5 553 505 481 473 458 - 3.2 - 17.2 All member banks—net demand and time deposits........................ 2,415 2,079 2,046 2,002 1,983 - 1.0 - 17.9 Bankers’ acceptances out standing............................................. 24.1 16.9 15.1 16.0 15.2 - 5.0 - 36.9 Federal Reserve Bank Bills discounted............................. Other bills and securities.... Reserve ratio.................................. 21 51 86.9% 117 69 62.8% 119 71 60.4% 122 67 59.7% 97 71 64.9% -20.5 + 6.0 + 8.7 +361.9 + 39.2 - 25.3 * Computed from indexes unadjusted for seasonal variation. t 3-month moving daily average. Page Three CONTRACTS AWARDED- CUMULATIVE MILLION REAL ESTATE-PHILADELPHIA PHILADELPHIA FEDERAL RESERVE DISTRICT MILLION TOTAL RESIDENTIAL PERCENT 1928 y SHERIFF DEEDS RECORDED . 200 1929 y' 1930 CONVEYANCES EXCLUSIVE OF SHERIFF SALES I JFMAMJJ ASOND JFMAMJJASOND Source: F. W. Dodge Corporation Three months 1932 (000’s omitted) Per cent change from 1931 1926-30 average Philadelphia................... $ 6,431 Reading............................ 871 Scranton........................... 489 Camden............................. 45 Trenton............................. 421 Wilmington.................... 809 “All other”.................... 17,046 - 39.8 + 39.2 +593.3 -87.5 - 23.3 - 25.4 -39.8 -88.5 -43.8 -53.1 -97.9 -65.0 -60.3 -58.2 Total: Philadelphia F. R. District, includ ing all cities............... $26,112 - 37.4 -75.1 Source: F. W. Dodge Corporation The proposed expenditure under building permits issued in seventeen cities of this district increased in March by a much smaller amount than usual, while first-quarter comparisons showed a decline of 29 per cent from the corresponding period of a year ago. The index number of building permits in March was 10 per cent of the 1923-25 average as against 9 per Four Digitized Page for FRASER 1931 1932 Source: Philadelphia Real Estate Board central stations was slightly smaller than in the first three months last year. Industrial consumption of elec trical energy was curtailed sharply in March, more than was seasonally ex pected, and in the first quarter it was 7 per cent less than in the like period of 1931. Actual comparisons are given in the table. Building and real estate. The value of building contracts awarded showed less than the usual seasonal gain in March. In early April, total awards increased further, owing to a larger volume of contracts let for non-residential construction. Although the trend of awards was upward during the three months period ended in March, the extent of this gain was not as large as was to be expected at this time. Contracts awarded in selected cities and district 1930 cent in February and 13 per cent in March 1931. Construction costs declined in April and were nearly 6 per cent below the previous low point of February 1922. This falling off reflects largely the influence of lower prices of building materials and a downward readjust ment of wage rates for certain classes of labor. Employment in building trades of fourteen Pennsylvania cities declined 13 per cent and payrolls 19 per cent from the middle of February to the middle of March; operating time was reduced 17 per cent in this period. The largest decreases in the number of workers and in their earnings oc curred in the concrete and marble and tile trades, while excavating operations increased sharply. In ten city areas employment decreased, while in two areas—Wilkes-Barre and York—more workers were taken on in March. Scranton was the only area in the en tire state that showed a gain in wage payments over February. The value of mortgages recorded in Philadelphia in March was nearly 46 per cent larger than in February; usually a decline of about 4 per cent occurs in this period. The number of deeds, on the other hand, was some what smaller than was recorded a month earlier. First-quarter compari sons show declines of 33 per cent for mortgages and 4 per cent for deeds compared with the same period last year. Conveyances exclusive of sher iff’s deeds fell off 9 per cent from the first quarter of 1931 and in March were 13 per cent smaller than a year earlier. Foreclosures in Philadelphia con tinue exceedingly heavy. Deeds re corded for properties sold by the sheriff in the first quarter rose 8 per cent over a year ago, although in March there was a sharp drop in the number of these deeds. Writs issued in April for forced sales also showed a marked decline from the unusually high level of the preceding month. Weather conditions on the whole have been favorable to farming and spring plowing is well un der way in most sections of this dis trict. The condition of winter wheat and of pasture lands is more favorable to early growth than a year ago or as compared with the five-year average. Estimated figures compiled by the De partment of Agriculture show that local farmers intend to plant a larger acreage of tobacco, potatoes and cer tain grains such as corn and barley than was harvested last year. Stocks of certain grains held by farmers are somewhat larger than the average for this season. Cold storage holdings of poultry are considerably larger than a year ago, while those of butter and eggs are smaller. Receipts of milk, poultry and eggs at the Phila delphia market have declined mate rially in the last eight weeks; for the year to date they were also smaller, with the exception of dressed poultry. Production of creamery butter in Pennsylvania during March showed a gain of almost 16 per cent over Feb ruary but a loss of an equal percentage as compared with a year ago. Reduc tions in prices of dairy and poultry products have affected the cash income of farmers throughout this district. Coal. Demand for anthracite at the mines has declined slightly since the middle of last month, while sales by retail yards have been stimulated somewhat by more than usual price Agriculture. MERCANTILE TRADE FREIGHT CAR LOADINGS PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT ALLEGHENY DISTRICT PERCENT RETAIL SALES MERCHANDISE AND MISCELLANEOUS WHOLESALE SALES ADJUSTED FOR SEASONAL VARIATIONS 1927 1928 1929 1930 1931 1932 1927 1928 1929 1930 1931 1932 Source: American Railway Association reductions. Colliery output, which averaged 177,000 tons daily during March, showed a gain of 11 per cent over the rate of the preceding month; in early April production increased further. First-quarter comparisons, however, indicate that output was 23 per cent smaller this year than last. Shipments also increased in March, although they were somewhat less than those of a year earlier. Despite a decline of 5 per cent in the whole sale price of hard coal, average quo tations in March were nearly 2 per cent above the level of a year ago. Production of Pennsylvania bitumi nous coal increased in March instead of declining as it usually does ; in early April colliery output declined season ally. Although activity at the mines increased noticeably during February and March, first-quarter output was 32 per cent smaller this year than last. Shipments also increased last month and were the largest since December; in comparison with a year ago, how ever, they were sharply reduced. Average prices of soft coal through out the country declined in March and were 3 per cent below those of a year earlier. Distribution. The trend of retail trade, except for seasonal changes, has been steadily downward since the turn of the year, so that the total sales of department, men’s and women’s ap parel, shoe and credit stores were 24 per cent smaller than in the first three months of last year, relative declines being larger in Philadelphia than out side of the city. Sales in March were 27 per cent smaller than a year ago, the sharpest decreases occurring in women’s apparel stores in Philadel phia and in credit stores. A gain of 11 per cent from February to March was considerably smaller than it should have been when the date of Easter and the usual activitiy of the season are taken into consideration. Smaller than customary sales of men’s apparel and credit stores were especially pro nounced. Business in early April de clined further, and reports of con tinued price recessions were numerous. Sales of wholesale dealers and job bers were 17 per cent less in the first three months of this year than last, the sharpest declines taking place in dry goods, electrical supplies, hard ware, and paper. In March wholesale business was 23 per cent smaller than a year ago. Sales also fell off from the February volume instead of in creasing, as was to be expected. Fur ther declines in April have been reported. Inventories at retail and wholesale establishments were 18 per cent smaller than at the end of March 1931. In comparison with a month ago, they were in about the same volume as is to be seasonally expected. The rate of stock turnover at retail was 7 per cent lower and at wholesale 3 per cent lower in the first quarter of this year than last. Payment of accounts in retail trade was at a less rapid rate than last year, while in wholesale there was no change. Prices of commodities at both retail and wholesale showed continuous weakness in all lines covered by this survey. Retail prices of food in Philadelphia and Scranton declined less than half of one per cent from February to March and were 16 per cent lower than a year ago, as com pared with a decline of 20 per cent in wholesale prices of certain standard foods. Shipments of commodities by rail road freight in this section continued steadily downward and in March they were 23 per cent smaller than a year ago. A decline of 4 per cent from February in the total of freight car loadings was larger than it normally should have been. Further decrease in total loadings was reported in April, but there was some gain in the ship ment of finished and semi-manufac tured commodities. Sales of new passenger automobiles, as measured by registrations, declined every month this year after a rather marked increase in December, when allowance is made for the normal sea sonal changes. As indicated by the heavy curve on the accompanying chart, sales in March were the lowest for any month in the past six years with the exception of November 1931. Reporting member banks in this district show a decline of 28 millions in loans to cus tomers in the five weeks ended April 20, divided about equally between loans secured by stocks and bonds and those which do not carry security collateral. This was the largest drop in any pe riod of equal length since early in 1931, and was reflected in a decrease in net demand deposits from 633 to 609 millions. Time deposits have held rather steadily around 265 millions. Investments of the reporting banks decreased from 457 to 424 millions, with the bulk of the decline appearing in reduced holdings of United States securities. Loans to the open market, which include loans on securities to New York City brokers and purchased commercial paper and bankers’ hills, make up only a very small part of the Financial conditions. Page Five NEW PASSENGER AUTOMOBILE REGISTRATION PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT CHECK PAYMENTS AND PRICES PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT ------ ADJUSTED FOR —1—* . SEASONAL VARIATIONS,' UNITED STATES UNADJUSTED— WHOLESALE-" | PRICES 1927 1928 1929 1930 1931 Sources: R. L. Polk Company Pennsylvania Motor List Company Reporting member hanks (000,000’s omitted) Apr. 20, 1932 Loans to customers: On securities................ All other......................... Loans to open market. United States securities Other securities.............. Total loans and investments.............. Net demand and time deposits.................. Government deposits . $ 337 329 6 155 269 Mar. 16, 1932 $ 351 343 7 185 272 1927 1928 1929 Source: Prices: United Labor Statistics Apr. 22, 1931 $ 1932 417 366 47 257 318 $1,096 $1,158 $1,405 874 18 897 45 1,220 29 total loans and investments and have changed little of late. Borrowings from this bank declined 17 millions in the period from March 16 to April 20. The funds to accom plish this were supplied mainly by a favorable balance in the interdistrict settlements and by the return of cur rency from circulation. The settle ment gain was only 6 millions, despite the substantial sales of securities by the member banks. Currency receipts exceeded payments by 10 millions; some part of this probably was due to the return of hoarded currency, as the excess of receipts over payments in similar periods of several earlier years was smaller. Treasury withdrawals from all depositary banks in the dis trict totaled 33 millions and substantial sums also were obtained from income tax payments and other collections; the greater part of these funds was disbursed within the district, so that Treasury operations had small influ ence on the volume of reserve bank credit. On April 20, a total of 70 millions was under discount at this bank. Philadelphia banks were largely re sponsible for the decrease over the last five weeks, although there also was some decline in discounts for banks L0ANS - INVESTMENTS - DEPOSITS 1930 States 1931 1932 Bureau of Changes in— Federal Reserve Philadelphia (Dollar figures in millions) Apr. 20, 1932 Bills discounted for banks in— Philadelphia.... $ 14.2 Other communi ties ....................... 55.7 Total bills dis counted ............. $ 69.9 Bills bought............ 3.4 United States se curities .............. 84.4 Other securities . . 1.5 Total bills and securities.......... $159.2 Fed. res. note cir culation ............. 250.5 Member banks’ re serve deposits 116.9 Foreign bank de posits .................. 4.6 Cash reserves.... 248.4 66.4% Reserve ratio......... One year Five weeks -$12.5 +* 12.3 - + 4.9 -$17.4 - 2.6 +$ 54.0 + 3.3 + 20.8 + 0.4 + + MILLIONS +$ 93.9 - 9.6 + 116.0 - 2.3 - -|- + 3.2 7.1 0.6% - FOR PHILADELPHIA BANKS TOTAL LOANS INVESTMENTS 1929 1930 1931 1932 *■ Average of first three Wednesdays_____________________________________ Page Six FOR BANKS OUTSIDE OF PHILADELPHIA 1928 30.2 4.1 3.4 22.0% outside of the city and a reduction in the number of borrowing banks. Open market operations of the fed- FEDERAL RESERVE BANK OF PHILADELPHIA TOTAL DEPOSITS 35.1 1.5 +$ 1.2 BILLS DISCOUNTED REPORTING MEMBER BANKS — PHILA. DISTRICT MILLIONS 41.7 * AVERAGE OF FIRST 3 WEDNESDAYS 1929 1930 1931 1932 eral reserve system are reflected in a rise of 21 millions in the bank’s hold ings of United States securities. A decline in the cash reserves of the bank was accompanied by a de crease in the combined note and de posit liabilities, so that the reserve ratio shows only a small drop from 67 to 66.4 per cent. The average for the first twenty days of April was 68.7 per cent, as compared with 64.9 per cent in March and 59.7 per cent in February. Up to the 25th of April no further suspensions of banks have been re ported in this district, rounding out a period of two and one-half months unmarked by a closure. One bank was reopened for business un der a new charter in addition to two other reopenings under original charters reported last month. Rates for prime commercial loans continue to hold around 4J4 to 5 per cent in Phila delphia, as com pared with to 4 per cent a year ago, and there has been no change in the 4 per cent renewal rate for call loans to brokers in this city. WAGE PAYMENTS Employment March, 1932 Employment and wages in Pennsylvania Per cent change since Mar., index * DELAWARE NEW JERSEY PENNSYLVANIA 1927 1928 1929 1930 1931 1932 Percentage change—March, 1932, from' March, 1931 City areas * Allentown........ Altoona....................... Harrisburg................ Johnstown................. Lancaster................... Philadelphia............. Reading....................... Scranton..................... Trenton....................... Wilkes-Barre............ Williamsport............ Wilmington............... Y ork.............................. Employ ment Wage payments Building permits (value) Debits -17.2 -27.5 -22.1 -30.5 -12.2 -10.0 - 5.1 -34.6 - 1.6 -10.2 -13.3 - 5.0 -23.4 -34.0 -44.2 -37.9 -54.9 -38.1 -21.9 -19.3 -34.1 -34.5 -27.9 -38.1 -17.6 -34.1 - 33.8 - 65.2 - 21.3 - 92.4 +671.1 + 8.8 - 24.6 - 63.0 - 40.2 - 37.6 - 87.7 - 93.4 - 42.7 -23.2 -14.0 -21.4 -36.1 -34.8 -33.9 -22.6 - 4.3 -33.5 -22.1 -32.4 -26.1 -27.3 Retail trade sales -21.6 -14.8 -15.0 -30.5 -27.1 -25.2 -13.9 -22.3 -26.2 -18.5 0 - 3.6 + 1.2 - 0.4 -16.0 - 2.1 - 1.0 - 9.7 - 9.3 -10.7 -12.7 - 1.7 + 0.4 - 1.0 -10.0 - 7.5 + 0.7 -29.9 - 4.4 - 5.4 - 8.5 -11.8 -19.2 -29.0 - 2.9 - 4.4 + 79,5 + 41.0 +198.1 + 19.5 +986.4 - 0.5 +210.7 + 4.2 + 26.3 - 36.9 - 38.8 - 65.4 +129.3 + 3.6 + 6.0 + 3.2 - 3.5 - 1.1 + 5.6 +11.1 + 2.2 -21.9 + 0.5 - 4.9 + 18.5 + 10.2 * Area not restricted to the corporate limits of cities given here. Mar., 1931 Feb., 1932 Mar., 1931 Feb., 1932 67.5 -14.8 - 2.0 46.3 -33.6 - 4.5 Metal products.......................... Blast furnaces..................... Steel wks. and rolling mills. Iron and steel forgings........... Structural iron work............... Steam & hot wtr. htg. app.. Stoves and furnaces................ F oundries................................. Machinery and parts............. Electrical apparatus............... Engines ana pumps................. Hardware and tools................ Brass and bronze products . 58.8 44.0 53.7 53.7 78.9 78.0 58.7 58.6 66.9 78.0 35.2 65.0 57.4 -21.6 - 2.4 -23.8 -26.9 - 8.4 -16.2 - 8.9 -24.0 -20.3 -14.8 -44.3 -17.1 -18.5 2.0 2.6 0.7 2.7 3.7 0.1 1.9 1.5 2.3 6.1 2.2 0.8 0.5 35.7 25.2 32.5 36.6 44.9 50.2 30.4 29.2 44.9 47.3 19.2 43.4 34.7 -42.9 -32.1 -46.4 -38.6 -28.7 -37.8 -21.6 -51.3 -32.2 -38.8 -59.6 -33.4 -40.8 - 2.2 + 11.5 + 2.8 + 0.5 - 9.8 - 4.4 - 5.3 - 9.9 - 4.7 -10.9 - 3.0 - 5.2 - 2.5 Transportation equipment. Automobiles......................... Auto, bodies and parts.......... Locomotives and cars............ Railroad repair shops............. Shipbuilding................................ 46.6p 43.0 65.5 21.6 73.3 38.7 -23.7 -32.4 +25.7 — 16.9 + 2.8 -44.2 _ 3.9 -26.7 — 3.8 + 2.4 + 1.8 + 3.5 31.3p 20.5 52.1 13.9 49.6 49.6 *-44.7 -53.1 +33.6 -28.7 -29.3 -51.0 -10.6 -42.4 -15.1 + 2.2 + 4.4 - 6.6 Textile products..................... 84.3 Cotton goods............................... 60.4 Woolens and worsteds........... 60.8 Silk goods...................................... 82.2 Textile dyeing and finishing 84.1 Carpets and rugs....................... 53.9 Hats.................................................. 58.4 Hosiery............................................ 116.1 Knit goods, other..................... 79.8 Men’s clothing........................... 76.6 Women’s clothing.................... 110.6 Shirts and furnishings............ 115.2 - 6.9 - 2.3 - 3.9 -20.7 - 5.4 - 6.6 -29.0 +14.0 + 1.0 - 5.0 -21.9 -15.0 _ 3.9 _ 1.5 + 1.3 3.1 — 1.4 + 3.5 1 .4 + 0.5 + 5.6 + 3.2 3.1 - 1.5 65.4 51.8 45.9 64.5 69.7 37.5 36.4 1C0.1 55.1 56.9 75.5 74.7 -21.1 -12.5 -23.1 -37.4 -28.0 -15.2 -37.5 + 0.4 -17.4 -21.9 -47.7 -40.6 - 8 7 — 5.3 — 7.1 -22.9 - 7.8 + 2.5 -12.5 — 0.5 +10.9 +13.6 —20 8 -15.3 Foods and tobacco........................ Bread and bakery products Confectionery............................. Ice cream....................................... Meat packing.............................. Cigars and tobacco.................. 95.8 98.7 94.9 83.4 94.4 92.1 - 8.8 - 7.8 - 2.0 -10.8 - 2.0 -13.2 _ — + + + 1.2 0.3 1.6 0.7 0.4 3.4 82.6 85.4 89.5 79.1 80.2 70.4 -14.1 -16.0 - 5.8 -13.6 - 4.5 -21.3 — — — + - 0 5 0 8 0.2 0 8 0.1 0.3 Stone, clay and glass products Brick, tile and pottery........... Cement...................................... Glass................................................. 52.1 56.5 45.5 60.5 -12.1 -20.8 -16.1 + 9.0 + 0.6 + 6.4 2.6 - 0.8 28.4 26.0 25.3 42.3 -38.0 -48.5 -41.3 -11.7 + - 3 1 4.0 5.2 5.4 Lumber products........................ Lumber and planing mills. . Furniture.......................... Wooden boxes............................. 47.9 32.3 51.3 58.0 -16.6 - 2.1 -21.8 -13.4 _ _ _ + 1.6 0.9 1.9 0.9 32.8 23.4 33.7 42.2 -37.8 -16.4 -45.3 -32.8 — - 7 3 8 2 8.7 1.6 Chemical products..................... 80.3 Chemicals and drugs.............. 60.5 Coke............................................... 62.2 Explosives..................................... 68.3 Paints and varnishes.............. 86.6 Petroleum refining................... 115.5 -11.7 -19.3 -15.0 - 9.4 + i.i - 9.3 2.5 _ 1 .0 + 0.3 — 3.8 _ 1.8 - 4.9 67.5 50.1 30.2 50.0 72.0 109.2 -24.3 -27.8 -48.0 -35.1 -10.9 -16.8 — 6 4 + 2.9 - 2.9 -13.9 — 5 9 - 9.2 Leather and rubber products 94.5 Leather tanning........................ 91.4 Shoes................................................ 112.6 Leather products, other. . 73.6 Rubber tires and goods.... 80.2 0.0 -10.0 + 19.8 - 8.3 - 5.3 + 2.5 + 1.7 + 4.5 1.9 + 1.1 75.7 69.1 100.2 69.9 70.2 -18.4 -27.6 + 6.7 -21.3 -23.9 + + + — - Paper and printing....................... Paper and wood pulp............. Paper boxes and bags............ Printing and publishing.. . . 87.3 75.4 71.1 94.0 - 7.9 - 7.0 -10.8 - 7.4 0.8 0.0 _ 1.8 1.3 83.1 63.6 65.7 92.1 -16.6 -18.5 -21.4 -14.7 - 3 4 — 3 6 -02 - 3.5 Anthracite mining......................... 71.7 -10.3 + 3.5 51.9 - 6.8 _ + — — + + — — — + _ 1.3 3.4 19 5 2 7.5 -28.8 March, 1932, from February, 1932 Allentown.................. Altoona....................... Harrisburg................ Johnstown................. Lancaster................... Philadelphia............. Reading...................... Scranton..................... Trenton....................... Wilkes-Barre........... Williamsport............ Wilmington . Y ork............................. Per cent change since Mar., index * All manufacturing industries (51).............................................. ALL MANUFACTURING INDUSTRIES PERCENT Payrolls March, 1932 + 3.5 +37.0 +15.4 -23.3 +43.3 +11.2 +19.1 +24.9 + 8.1 +22.0 - 1.2 + 6.8 Bituminous coal mining............ - 1.1 + 0.6 - 8.7 Canning and preserving............ + 2.2 Construction and contracting . -10.6 -18.0 Hotels.............................................. - 2.0 - 0.2 Laundries......................................... - 1.2 - 1.9 Dyeing and cleaning.................... - 1.3 - 1.3 Public utilities................................. - 1.2 - 0.3 - 0.0 + 9.4 Quarrying and non-metallic mining........................................... Retail trade.................................... 85.1 - 8.2 + 2.9 Wholesale trade.......................... 84.2 1 -r 6.1 - 0.8 * 1923-1925 average = 100- p-preliminary figures. Page Seven OUTPUT OF MANUFACTURES PHILADELPHIA FEDERAL RESERVE DISTRICT Index numbers of individual lines of trade and manufacture Philadelphia Federal Reserve District Index numbers- -expressed in percentages of the 1923-1925 average which is taken as 100 “Adjusted” index numbers make allowance for the usual seasonal changes which result from an un- Adjusted for seasonal variations tween the months of the year. They are the most significant in dexes because they show im provement or decline beyond the level usually to be expected. LOCOMOTIVES “Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Not adjusted Percentage comparison Mar., 1931 Feb., 1932 Mar., 1932, with Mar., 1932 Month ago Year ago 3 months 1932 with 3 months 1931 Mar., 1931 Feb., 1932 Mar., 1932 Retail trade Sales 87.0 65.3 61.2 - 6.3 -29.7 -24.4 82.0 53.6 59.7 Department.................................. 85.7 Men’s apparel............................. 67.3 Women’s apparel....................... 108.5 Shoe................................................... 101 .3 Credit............................................... 83.5 67.0 58.7 77.5 75.6 54.0 64.1 48.8 75.2 70.4 48.9 - 4.3 -16.9 - 3.0 - 6.9 - 9.4 -25.2 -27.5 -30.7 -30.5 -41.4 -20.1 -28.8 -23.8 -23.0 -34.9 78.6 64.3 122.9 99.3 71.0 55.1 48.8 57.1 61.2 47.5 60.7 48.6 88.3 71.8 43.0 All stores.............................................. WOOLENS AND WORSTEDS Stocks of goods 76.3 63.4 62.8 - 0.9 -17.7 78.9 60.6 64.9 71.7 73.4 109.2 93.7 68.7 63.2 64.4 84.5 69.5 54.4 62.1 63.5 81.2 71.8 54.5 + + -13.4 -13.5 -25.6 -23.4 -20.7 74.2 74.4 119.4 94.6 70.8 60.1 62.7 79.4 64.3 64.3 88.6 72.5 56.1 1.7 1.4 3.9 3.3 0.2 52.8 Rate of stock turnover - 6.5 0.86 0.92 Wholesale trade Sales 80.4 64.9 62.0 - 4.5 -22.9 -17.3 75.3 59.0 58.3 Boots and shoes......................... 54.9 Drugs................................................ 101.1 Dry goods...................................... 63.0 Electrical supplies..................... 83.5 Groceries .................................... 92.0 Hardware....................................... 70.9 Jewelry............................................ 59.2 Paper ............................................ 71.5 56.2 93.5 43.2 48.2 86.9 46.9 47.0 52.2 42.8 91.1 37.4 49.3 85.3 40.9 43.4 48.6 -23.8 - 2.6 -13.4 + 2.3 - 1 .8 -12.8 - 7.7 - 6.9 -22.0 - 9.9 -40.6 -41.0 - 7.3 -42.3 -26.7 -32.0 - 8.0 -12.8 -26.7 -34.1 - 6.3 -31.8 -22.4 -27.2 62.0 106.2 58.6 71.8 84.6 69.5 45.0 75.1 39.9 95.4 36.3 42.9 80.8 38.0 33.4 51.2 48.4 95.7 34.8 42.4 78.5 40.1 33.0 51.0 - 0.9 -17.5 84.8 69.9 70.0 44- - 6.3 -18.8 -29.8 -18.7 -12.5 -10.9 — 17.1 117.3 54.7 107.2 99.3 84.9 66.3 86.4 114.2 43.4 71.9 81.8 73.0 59.0 70.9 109.9 44.4 75.3 80.8 74.3 59.1 71.6 Total of all lines... . .'.................. Stocks of goods LUMBER PRODUCTS 84.1 70.0 69.4 116.1 53.6 110.5 97.4 80.9 71.3 84.7 112.0 44.7 76.5 78.7 70.9 67.0 71.6 108.8 43.5 77.6 79.2 70.8 63.5 70.2 2.9 2.7 1.4 0.6 0.1 5.2 2.0 Rate of stock turnover PAPER AND WOOD PULP Output of manufactures LEATHER-OOAT AND KID J^ r T\ i____ \/ PETROLEUM REFINING 1930 15.6 35.4 26.8 20.2 53.3 -28.4 4- 0.9 - 5.6 — 15.1 - 8.1 -60.5 -46.3 -46.8 -68.5 -38.9 -52.0 -45.0 -46.4 -61.2 -31.7 45.4 70.5 52.9 71.9 81.1 22.5 36.9 29.0 26.6 55.7 17.9 37.9 28.1 22.6 49.6 Motor vehicles....................................... 50.1 Automobile parts and bodies... 37.6 Locomotives and cars....................... 20.9 Shipbuilding............................................ 169.2 43.7 59.7 15.5 160.4 23.5 50.2 14.9 144.6 -46.2 -15.9 - 3.9 - 9.9 -53.1 +33.5 -28.7 -14.5 -22.9 4-64.3 -35.7 -17.0 54.1 40.9 22.6 176.0 44.1 64.5 15.8 157.2 25.4 54.7 16.1 150.4 Silk manufactures............................... 103.5 W oolen and worsteds........................ 57.5 Cotton products ............................ 48.1 Carpets and rugs................................. 52.4 95.1 Underwear............................................... 114.9 91.0 48.0 42.9 43.8 104.2 103.2 78.6 45,8p 42.4 44.9p 96.2 101.4 -13.6 - 4.6 - 1.2 4- 2.5 - 7.7 - 1.7 -24.1 -20.3 -11.9 -14.3 + 1.2 -11.7 -11.9 - 7.1 - 7.5 - 8.0 + 5.7 - 2.9 106.6 55.4 51.3 53.4 99.0 125.2 96.5 49.5 46.0 44.7 108.4 112.5 81.0 44. lp 45.4 45.8p 100.0 110.5 88.9 53.6 23.9 59.9 27.1 21.3 58.4 27.6 19.7 - 2.5 + 1.8 - 7.5 -34.3 -48.5 -17.6 -22.2 -44.7 -15.6 68.4 52.5 22.7 41.9 26.0 20.4 45.0 27.0 18.7 85.1 74.4 Canning and preserving.................. 41 .2 Cigars......................................................... 102.6 91.4 62.7 25.9 82.6 - 0.8* 90.0 - 1.5 81.9 4-30.6 0.0 25.9p 72.6 — 12.1 -16.0* 4- 5.8 4-10.1 -37.1 -29.2 -15.7* 101.7 4-13.2 82.2 +25.7 113.8 36.6 -27.1 94.4 -17.7 86.1 94.2 81.5 23.9 69.4 85.4 86.4 125.3 23.5p 66.8 76.4 Printing and publishing................... 111.3 66.2 100.2 -18.2 -14.7 -14.9 -13.0 77.9 113.5 66.2 100.2 63.8 96.8 127.9 103.8 130.8 107.3p 49.1 72.3 132.9 63.6 42.3p 68.0 120.6p 62.3 Lumber and products....................... Slaughtering, meat packing.......... 62.5 94.9 - 5.6 - 5.3 132.4 127.0 121.8 96.1 123.4 + 1.3 108.4p 4-12.8 - 6.8 -14.6 + 0 1 -14.3 140.3 125.7 69.0 Paints and varnishes.......................... 74.9 Petroleum products......................... 137.2 93.3 Coke by-product................................. 49.1 73.8 134.2 60.6 42.3p 66.7 121 lp 59.9 -38.7 -10.9 -11.7 -35.8 -36.2 - 4.0 - 2.2 -33.8 69.0 76.4 136.3 97.0 -13.8 - 9 6 - 9.8 - 1.2 1931 * Computed from indexes unadjusted for seasonal variation. Page Eight 1.03 21 .8 35.1 28.4 23.8 58.0 Leather, goat and kid....................... 1929 1.06 39.5 65.9 50.4 64.2 87.2 Iron castings........................................... Steel castings......................................... Electrical apparatus.......................... SHOES - 2.8 p-preliminary.
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