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THE BUSINESS REYlfiW "^4 1a RESERVE DISTRICT THIRD FEDERAL PHILADELPHIA MAY *■> %c A FEDERAL RESERVE BANK OF PHILADELPHIA Of, % Business and Banking Conditions in the United States In March and the first three weeks of April industrial activity continued at about the same rate as in January and February. Distribution of com modities to consumers showed less than the usual seasonal increase and wholesale commodity prices declined further. Production. Volume of industrial production showed little change from February to March and the Board’s index, which is adjusted for the num ber of working days and for usual sea sonal variations, remained at 79 per cent of the 1923-1925 average. In the steel industry, output of ingots aver aged 33 per cent of capacity in March and continued at about this level in the first three weeks of April. Ship ments of finished steel in March, as in other recent months, were at a somewhat higher' rate than output. Automobile production, which usually expands sharply at this time of the year, showed little change from the low level of January and February, and output of tires and plate glass like wise remained at a low rate. In the lumber and cement industries there were considerable increases in output in March. At cotton and silk textile mills and shoe factories activity rose somewhat, while production at woolen mills declined following a rise in Feb ruary. Declines were reported also for meat packing and sugar refining. At mines, where production decreased generally in February, output of bitu minous coal and nonferrous metals continued to decline in March, while production of anthracite and crude pe troleum increased somewhat. Value of construction contracts awarded showed a considerable in crease in March, according to figures of the F. W. Dodge Corporation. Awards for residential work, which had advanced moderately in February, increased sharply in March but were still 12 per cent less than in March 1937. Contracts for other private work also increased in March, but re mained considerably smaller than a year ago. The value of public proj ects showed an increase and was higher than last year. Employment. Factory employment declined somewhat and payrolls showed little change from the middle of Feb ruary to the middle of March, al though increases are usual at this sea son. The number employed in the machinery industries decreased con siderably further and at woolen mills there was also a substantial decline, while most other manufacturing in dustries showed moderate declines or little change. Employment on the rail roads and in the public utilities declined somewhat further in March, while in other nonmanufacturing lines there was little change in the number employed. Distribution. Sales at variety stores and by mail order houses increased seasonally in March, while sales at de partment stores showed less than the ^ MONEY RATES IN NEW YORK CITY 4 k i ~ TREASURY v y l “ 1 V) » V- iu 1ESERVE BANK DISCOUNT RATE K ZAo YEARS TRE ASURY BILLS 90 DAYS 1934 1935 1936 A\ 1937 1938 Discount rate of Federal Reserve Bank; weekly averages of daily yields on 3 to 5-year Treasury notes and on Treasury bonds callable after 8 years, and weekly average of daily dealers’ quotations on 90-day Treasury bills or rate on new bills offered in week. For weeks ending January 6, 1934, to April 23, 1938. INDUSTRIAL PRODUCTION WHOLESALE PRICES 1923-25 ■ Index of physical volume of production, ad justed for seasonal variation. By months, January 1934 to March 1938. Indexes compiled by the United States Bureau of Labor Statistics. By weeks, 1934 to week ending April. 16, 1938. Wednesday figures of total member bank re serve balances at Federal reserve banks, with estimates of required and excess reserves, January 3, 1934 to April 20, 1938. Page One usual rise. The Board’s seasonally adjusted index of department store sales declined from 88 in February to 86 in March and figures for the first three weeks of April indicate some further decline. Freight-car loadings showed little change from February to March, although a rise is usual at this time of the year. Shipments of coal declined substantially and miscellane ous loadings increased by less than the usual seasonal amount. Commodity prices. Wholesale com modity prices generally declined from the middle of March to the third week of April. There were further decreases in prices of a number of raw and semi finished industrial commodities, and prices of some leading agricultural products also declined, reflecting in part seasonal influences. In the mid dle of April prices of some industrial tinued the inactive gold account and materials advanced slightly from the deposited about $1,400,000,000 of gold certificates with the Federal reserve lows reached earlier in the month. banks. Additions to excess reserves Bank credit. During March and the from this source will occur as the first three weeks of April, total loans Treasury draws upon these deposits at reporting member banks in 101 to meet current expenditures and the leading cities declined further, re retirement of Treasury bills. flecting a substantial reduction in loans Money rates and bond yields. Yields to brokers and dealers in securities and on Treasury bonds declined from a also declines in commercial loans. level of 2.50 per cent in the first half Holdings of investments showed little of April to 2.32 per cent on April 22. net .change, declining in March and in The average yield on 3-5 year Treas creasing in April. ury notes declined to a new low of As a part of the Government’s pro 0.81 per cent, which compares with gram for encouragement of business the previous low of 0.92 per cent in recovery, the Board of Governors re December 1936. The rate on threeduced reserve requirements of member month Treasury bills declined to vir banks by about $750,000,000, effective tually a no-yield basis. Other short April 16, and excess reserves corre term open-market money rates re spondingly increased. As a part of the mained unchanged in the first three same program the Treasury discon weeks of April. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial conditions in the Phila delphia Federal Reserve District showed some improvement in March but a let-down was indicated by pre liminary data covering the early part of April. The gain in March was due largely to increased activity at plants manufacturing consumers’ goods. Production of coal was unusually well maintained in March but that of crude oil did not show the customary small increase. The seasonally adjusted in dex measuring the combined ouptut of factory products and minerals was 71 per cent of the 1923-25 average in March as compared with 69 in Feb ruary and 70 in January. A year ago this index was 99 and close to the peak for recent years. The average rate of industrial production in the first quar ter of 1938 was 27 per cent below the level of a year earlier. The value of building contracts awarded increased sharply in March, owing to substantial gains in awards for family houses and nonresidential buildings. Comparison with a year ago also was favorable but contracts for all types of construction in the first three months this year were 22 per cent smaller than in the same period of 1937. The local real estate market continues quiet although inquiries for industrial space have increased a little. Marketings of agricultural commodi ties in this district have declined some what more than usual and continue smaller than last year. Decreases from a year ago in farm cash income re flect lower prices received by farmers for crops and livestock products. Retail trade sales increased less than usual from February to March; busi ness in April showed a seasonal gain but was not as large as last year. In wholesale lines dollar sales also contin ued smaller than a year ago. Inven tories of merchandise in March showed about the usual rate of increase at retail but virtually no change at wholesale. In both channels of trade, stocks were smaller than a year earlier. Sales of new passenger automobiles increased further in March but regis tered a marked decrease as compared with last year. Life insurance sales did not maintain their customary level COMMERCIAL LOANS MANUFACTURING ACTIVITY REPORTING MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILA. FED. RES. DIST MILLIONS PERCENT PRODUCTION—. 1938 (aOJ TON 5CA5 VARIATION; 1937 EMPLOYMENT 1937 PAYROLLS 1932 1933 Page Two 1934 1935 1936 1936 1937 1938 JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT Nole:~'All other* loans uplo May 12,1937 OCT NOV DEC. in March and were the smallest for that month in several years. Freightcar loadings showed an appreciable gain, following declines in January and February, but they were nearly one-third smaller in the first quar ter this year than last. Industrial employment and payrolls showed virtually no change from Feb ruary to March but decreases of some what greater than seasonal proportions were indicated by early figures for April. Compared with March 1937, the number of workers employed de clined 15 per cent and wage disburse ments 25 per cent. Wholesale commodity prices have shown some additional weakness. Quo tations for raw materials have de creased most, although prices of semi finished and finished products also have eased off. Manufacturing. Demand for factory products in this district continues un usually quiet and sales are much smaller than a year ago. Current reports in dicate that inquiries generally have become more numerous but expansion in actual sales has been restricted chiefly to limited orders for seasonable merchandise such as textiles and cloth ing, shoes and certain building mate rials. There has been some improvement in the textile industry in recent weeks, as indicated by a small but steady gain in the volume of new business. One of the most favorable aspects of the situation is the fact that stocks of finished goods have been declining and with few exceptions are smaller than in the spring of 1937. Supplies of raw materials at most mills likewise have been reduced, in consequence of a more active demand. Unfilled or ders in most lines have increased very little lately, principally because buyers are still hesitant to cover requirements beyond their immediate needs and fac tories have been able to make prompt deliveries. In the iron and steel industry, manu facturing activity continues at an ex ceedingly low level. Blast furnaces, foundries, and steel works and rolling mills in most cases are operating on a hand-to-mouth basis. Fabricators of structural steel have experienced some gain in orders but the current volume is much less than a year ago, when building and construction was consid erably more active than it is at present. There has been some seasonal gain in the demand for builders’ hardware and tools and makers of machinery have noted an increasing number of in Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not Mar Jan Feb. Mar. Marcl 1938 frc m be typical. 1937 1938 1938 1938 Month Year ago ago Industrial production Manufacturing—total.............. Durable goods....................... Consumers’ goods.................. Metal products...................... Textile products.................... Transportation equipment. Food products...................... Tobacco and products......... Building materials............... Chemicals and products... Leather and products......... Paper and printing............. Coal mining................................ Anthracite............................. Bituminous........................... Crude oil.................................... Electric power Output................................... Sales, total!.......................... Sales to industries J............. Not adjusted Per cent change 1938 from 3 mos. 1937 Mar. Jan. Feb. Mar. 1937 1938 1938 1938 498 488 + 3 + 2 - 1 + 4 - 4 +ii - 8 +1 + 7 +28 - 8 + 4 - 1 +26 +28 + 4 - 2 244 222 221 241 222 222 174 153 153 229 224 148 + 3 + 1 - 3 - 6 - 7 -15 - 6 +13 -16 - 1* + 0* - 0* -19* -32* -41* -17* -29* -39* - o* + 0* -15* -25* — 13* 122 106 104 r 104 -23* 180 134 134r 135 -15 - 4 - 5 - 9 + 9 + 3 -13 -23 -42 + « -46 -64 -12 -36 -22 -41 +10 -46 -57 -11 -33 - 2 + 0 + 4* - 1* - 2 + 19* + 0* - 7* + 5 + 3 + 4 -14 - 2 -14* - 9* -26 -54* - 2* _ 4* -34 -33 -41 83 82 95 78r 112 -20 -49* 146 - 1* 129 + 1* 135 -33 78 -32 79 -33 87 66p 58 59 71 75r 80 82 77 78 72 69 72 83 79 88 67 54 57 120 125 126 135 140 130 51 50 49 53 49 49 51 61 55 -28* -45* +53* -64* +84* -20* 56 64 118 120 39 42 -19 105 83 78 75 33 34 29 31 88 94 88 r 86 r 85 87 82 81 72 76 84 80 82 75 80 70 74 r 83 78 80 74 80 70 74 83 79 80 75 99 r 96 70r 69 65 92 58 1001 69 r 106 62 991 49r 83 76 80 75 116 90 53 25 121 114 146 103 95 85 881 64 831 66 98 49 459 522 66 67f 56 55r 73 76p 57 54 58 64j 76 r 70 74 74 j 91 97 24 31 106 98r 111 115j 88 87 52 66p 68i 53 48 50 Employment and wages—Pa. Factory—Wage earners............. Payrolls................ „...................... Man-hours (1927-28 = 100)___ General (1932 = 100) Employment................................. Payrolls.......................................... -27 -30 -41 -24 -49 -35 -16 - 7 -17 -42 -19 -21 - 8 -22 -18 -49 + 6 -27 -30 -37 -27 —45 -43 -12 - 5 -15 -45 -15 -22 - 7 - 7 - 0 -44 + 6 108 102r 88 79 107 47 121 151 97 72 r 68 r 100 468 249 235 235 238 229 240 166 148 152 233 222 141 75 66 57 74 67 58 98 69 97 r 64 91 98 98 59 51r 76 73 75 22 112 107 85 70 72 56 502 70 67 71p 68p 55 57 67p 62 76r 73 74p 72 89 77 21 r 27 98p 106 118 119p 89 88 55p 56 56p 57 51 52 498 498 74 r 67 r 58 r Building and real estate Contracts awarded!—total........... Residentialf.................................. Nonresidentialf.......................... Public works and utilities!. . . . Permits for building—17 cities. . . Real estate deeds—Philadelphia!. Writs for Sheriff sales—Phila. . . . 60 54 46 37 64 162 38 511 498 22 21 74 95 13 44 364 70 87 14 45 317 56 35 60 107 48 48 r 508 43 21 65 57 17 43 323 53 44 20 17 82 63 87 77 9 10 51 47 343 371 Distribution Retail trade —sales.................... stocks................ Wholesale trade—sales................... _ _ stocks................ Life insurance sales.......................... New passenger auto, registrations Hotels—Occupancy.. . (1934 = 100) Income, total (1934=100) Freight car loadings—total........... Merchandise and miscellaneous Coal................................................. 86 76 78r 79i 89 76 74p 78 75 -13 -15* Business liquidations Number............................. Amount of liabilities... . 86 23 Payment of accounts Check payments.................... Rate of collections (actual) Retail trade........................ 107 - 1 -29 33 +n + 2 - 0* + 1* 0* - 0* + 0* + 0* + 2* - 9* -25* -16* - 3* - 8* - 8* - 8* Prices—United States Wholesale (1926 = 100). Farm products............... Foods............................... Other commodities.... Retail food....................... Philadelphia................... Scranton.......................... (In millions of dollars) March 1937 Dec. 1937 Jan. 1938 Feb. 1938 $ 1.0 199 390 76.1 $ 2.9 221 355 71.7 S 2.4 216 380 72.7 $ 2.5 215 374 72.6 * 447 726 1,429 17.2 $ 460 662 1,336 15.4 $ 456 656 1,362 12.9 » 453 660 1,355 12.4 - 8* -24* -15* - 2* - 7* - 8* - 8* March 1938 % change from Month ago Year ago $ 1.9 215 368 72.4 -24 0 - 2 - 0 +90 + 8 - 6 $ 448 652 1,333 il.2 - 1 - 1 - 2 -10 + o -10 - 7 -35 Banking and credit Federal Reserve Bank Bills discounted....................... Other bills and securities............. Member bank reserves................. Reserve ratio (per cent)............... Reporting member banks Loans................................................. Investments..................................... Deposits (a)..................................... Bankers’ acceptances outstanding. * Computed from data unadjusted for seasonal variation, t 3-month moving daily average centered at 3rd month. t Not included in production index. p—Preliminary. r—Revised, (a) Less cash items in process of collection. Page Three OUTPUT OF METAL PRODUCTS WORKING HOURS AND HOURLY EARNINGS PHILADELPHIA FEDERAL RESERVE DISTRICT PENNSYLVANIA FACTORIES CENTS HOURS PERCENT EARNINGS PER HOUR (avo.) ELECTRICAL APPARATUS STEEL PRODUCTS HOURS WORKED' ADJUSTED FOR SEASONAL VARIATION 1932 1933 1934 1935 1936 quiries. In most branches of the iron and steel industry stocks of finished goods have declined further and are smaller than they were' last spring. Inventories of raw materials likewise have decreased; in -nearly all cases, however, supplies still are ample for current requirements. More numerous inquiries also have been received by manufacturers of building materials such as lumber, brick, cement, paint and plumbing sup plies, but actual sales have shown little increase. The failure of demand to measure up to seasonal expectations re flects much quieter conditions in the building industry than a year ago. Prices of factory products have de clined further. Quotations for com modities other than farm products and foods decreased steadily from the mid dle of March to the middle of April, according to the index of the Bureau of Labor Statistics. On April 23 this index was 82.1 relative to the 1926 average as compared with 82.8 a month earlier and 86.2 a year ago. Factory employment in this district declined a little from February to March but wage disbursements showed virtually no change. In the first quar ter of 1938 factories employed 17 per cent fewer workers and paid out in wages 27 per cent less than a year ago. Preliminary reports for April indicate additional declines in employ ment, payrolls and working time. These changes were less favorable than was to be expected and reflected chiefly further recession in activity at plants producing durable goods. In Pennsylvania factories the index of employment in March was 74 per cent and that of payrolls was 67 per cent of the 1923-25 average. These Page Four 1937 1932 1933 indexes showed declines from a year ago of 19 and 32 per cent respectively. Employee-hours worked were only fractionally less than in February but they registered a decline of 41 per cent from a year ago. Employment in Delaware factories in March decreased 2 per cent and wage disbursements about 1 per cent. Compared with a year earlier the number of workers employed was 24 per cent smaller and payrolls showed a reduction of 26 per cent. Manufacturing plants in southern New Jersey experienced a decline of 3 per cent in employment from February to March but wage payments were virtually unchanged. Recessions from a year ago, however, were substantial. Output of manufactures showed a further gain in March, owing chiefly to additional expansion in activity of nondurable goods industries. This bank’s seasonally adjusted index of productive activity increased to 67 per cent of the 1923-25 average from 66 in February and 65 in January; a year ago it was 96. The average rate of production in the first quarter of 1938 showed a decline of about 30 per cent from a year earlier and was the lowest for that period since 1934. The improvement in March reflected further increases in the output of tex tiles, shoes, and tobacco. Activity at sugar refineries expanded by a much greater percentage than usual and pro duction of such durable goods as steel, iron castings, cement and lumber like wise was larger than in February. These gains were offset in part by de creases in March in production at plants turning out pig iron, steel cast ings, electrical apparatus, transporta tion equipment, brick, leather and petroleum products. 1934 1935 1936 1937 1938 Production of electric power de creased less than it usually does in March but continued smaller than a year ago. Total sales were maintained a little above their customary level in March but sales to industry showed an appreciable decline and were 15 per cent smaller than a year ago. Coal and other fuels. Demand for anthracite has shown little change in recent weeks, although the usual re duction in prices went into effect on April 1. Shipments declined in March and were considerably smaller than a year ago. Colliery output decreased by a much smaller percentage than is customary in March, but in early April failed to show the usual rate of expan sion. In the first quarter of 1938 ship ments and output were virtually the same as a year earlier. The bituminous coal market re mained quiet in March, largely because of a less active demand from industrial consumers. Production decreased fur ther but, as in the case of anthracite, the percentage decline was smaller than is ordinarily to be expected. Out put of Pennsylvania mines was ap proximately 19,000,000 tons in the first three months of 1938; this was 44 per cent less than in the same period last year and the smallest volume for that period since 1933. Shipments of soft coal declined further in March, pro longing the marked downward trend into the fifth month. Output of by-product coke declined more than it usually does in March and was less than in any month since 1934. Production of gas and fuel oil decreased sharply as compared with February; nevertheless it continued substantially greater than in March of last year. TEXTILE FIBERS 450 BUILDING AND CONSTRUCTION UNITED STATES MILLIONS OF LBS DOLLARS ' PER LB. -1.150 MILL TAKINGS - PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT COTTON CONTRACTS AWARDED WOOL; — PRODUCTION OF ■ LUMBER, BRICK, AND | CEMENT 1935 1936 1937 1938 1935 1937 1938 1932 The value of building contracts awarded in this district in March amounted to about $13,000,000, an increase of 48 per cent from the previous month and a rise of 12 per cent in comparison with a year ago. Substantial improvement was registered in all types of construction, the most significant changes being in creases of 41 per cent in awards for family houses and 70 per cent in con tracts let for nonresidential buildings. The favorable comparison with a year ago reflected very large increases in contracts for educational buildings and hospitals; declines were general in other classifications, although the de crease in awards for family houses' was negligible. Building and real estate. Building contracts Philadelphia Federal Reserve District Per cent change March 1938 From 1938 (000’s omitted) month from 3 mos. ago 1937 $ 3,254 '429 2,825 1 \ 798 l' 039 770 2,642 3,347 + 43 + 59 + 41 + 70 + 26 +127 + 35 +130 Total buildings........... $11,052 Public works and utilities. 2,121 + 61 + 3 - 12 - 46 Grand total................. $13,173 + 48 - 22 ++ + - 41 56 38 10 43 65 Source: F. W. Dodge Corporation. The aggregate value of contracts awarded in the first quarter amounted to approximately $32,000,000, a de cline of 22 per cent from a year ago. This, however, was 65 per cent larger than the average for the same three months in the years 1932-1936. Wholesale prices of building mate rials have fluctuated rather narrowly since early this year, following a 1933 marked downward tendency in the fourth quarter of 1937. About the middle of April the price index of the Bureau of Labor Statistics was 91, relative to the 1926 average; this was a little higher than a month earlier, but compared with over 92 at the be ginning of this year and 97 in April 1937. The local real estate situation con tinues unusually quiet and the market generally is less active than in the spring of last year. Lately inquiries for industrial space have increased somewhat. In the residential field im provement thus far has been only mod erate and largely seasonal in nature. Additional financing facilities provided under the modified Federal Housing loan plan have stimulated sales of houses costing less than $6,000 but the volume of these sales thus far has been relatively small and appreciably less than a year ago. The upward trend of rentals, that was so pronounced in the spring of 1937, was checked about the middle of last year. Since then rents have continued steady. Distribution, trade and service. Retail trade sales failed to maintain the usual rate of activity from February to March, after allowance is made for the number of trading days and the date of Easter. The sales of department, apparel, shoe and credit stores com bined were 14 per cent smaller than a year ago. Holiday business in April increased seasonally but was not up to the volume of a year ago, largely be cause of declines in the sales of de partment stores in Philadelphia. Inventories at retail establishments increased as usual in March but they were 2 per cent smaller than at the beginning of April last year. 1934 1935 1936 1937 The volume of sales by wholesale es tablishments increased 4 per cent from February to March but was 14 per cent smaller than a year ago. The larg est gains in the month occurred in shoes, electrical supplies, hardware and dry goods. Marked declines from a year ago, however, are reported by vir tually all wholesale lines. The value of inventories changed little in the month and was 9 per cent lower than a year ago. Sales of new passenger automobiles in this district increased sharply in March, although they continued much smaller than a year before. In the first three months of 1938, the num ber of new units sold was nearly 50 per cent less than in the same period last year and was ■ the smallest first quarter total since 1934. Room occupancy at nonresort com mercial hotels showed practically no change from February to March. Hotel business Philadelphia Federal Reserve District Room occupancy.................... Per cent of capacity used: March 1938............. 59.0 Feb. 1938............. 59.6 March 1937............. 60.1 Revenue from: Guest rooms........................ Food....................................... Other sources...................... Total revenue................. Mar. per cent change from Month Year ago ago 1938 from 3 mos. 1937 4- 0 + 0 +0 -2 -1 - 1 - 9 — 15 -0 -6 -7 +i -0 +2 - 7 -4 +1 Total freight-car loadings in this sec tion during March increased about 5 per cent more than is customary. For the quarter ended March 31 total ship ments in this area showed a decline of about one-third from the same period of last year. The volume of rail freight Page Five consisting chiefly of manufactures orig inating in the Philadelphia industrial area declined in March after increasing somewhat in February. Shipments in the first three months this year were approximately 15 per cent less than a year ago. Banking conditions. Over the past month there has been a sharp increase in the reserve balances of member banks. By April 20 they had risen to $405,000,000, the highest amount shown in any weekly statement since last May. In the first half of April, when the average was $384,500,000, excess reserves were $91,000,000; the ratio of excess to requirements was 29 per cent at reserve city banks and 34 per cent at country banks. Effective April 16 the Board of Governors of the Federal Reserve Sys tem reduced requirements on time de posits from 6 to 5 per cent, and on net demand deposits from 20 to 17p2 per cent at reserve city banks and from 14 to 12 per cent at country banks. If this revision had been in effect during the first fifteen days of April the excess of reserves over require ments then would have been $131,500, 000, or 52 per cent, in this district, Reserve balances of member banks (Dollar figures in millions) Held Re Ex quired cess Ratio of excess to re quired Reserve city banks March 1-15. . . . $228.1 #183.4 $44.7 March 16-31.... 218.4 181.6 36.8 April 1-15.... 236.9 183.2 53.7 24% 20 ,r 29” Country banks March 1-15. . . . March 16-31. . April 1-15.... 32” 29” 34” 146.7 143.0 147.6 110.9 110.5 110.4 35.8 32.5 37.2 The increase in reserves in the four weeks ended April 20 was $47,700,000. Virtually all of this expansion was due to an excess of Treasury disburse ments over receipts, resulting largely from withdrawals from the unemploy ment trust fund, payments by Govern ment agencies in connection with a bank consolidation, redemptions of Treasury bills and payment of interest on the national debt. There was also a small movement of funds to this dis trict through the settlements. Funds supplied by these transactions were offset only in small part by an increase in currency demand which reflected seasonal needs for the Easter trade. Borrowings from this bank changed little. There was a decline from $211, 600,000 to $210,500,000 in the bank’s participation in System holdings of Page Six Federal Reserve Bank of Philadelphia (Dollar figures in millions) Bills discounted............ $ Industrial advances. . . U. S. securities.............. April 20, 1938 1.8 0.1 3.2 210.5 Total............................ $215.6 Note circulation........... 307.4 Member bank deposits. 405.0 U. S. general account.. 45.9 Foreign bank deposits. 13.3 ()ther deposits............... 1.6 Total reserves............... 580.7 Reserve ratio................. 75.1% Changes in— Four weeks One year - 0.1 - 1.1 +$0.7 - 0.2 - 1.1 + 0.9 -$1.3 - 1.1 +47.7 +32.7 + 2.2 + 0.4 +82.7 + 3.1% +$0.3 - 1.3 -24.3 +43.6 + 3.5 - 7.0 + 15.4 + 0.6% -$0.1 April 20, 1938 Reporting member banks (000,000’s omitted) Changes in— Four weeks One year Assets Commercial loans................. $ Open market paper............. Loans to brokers, etc........... Other loans to carry secur.. Loans on real estate............ Loans to banks..................... Other loans............................. 204 24 16 34 58 2 98 - Total loans......................... $ Government securities........ Obligations fully guar’teed. Other securities..................... 436 302 86 261 — $12 - 4 - 2 + i -$ 17 - 33 5 - 30 Total loans & investments $1,085 Reserve with F. R. bank. . 271 —$17 + 47 -$ 85 - 34 -# 4 - 5 - 2 1 * -$ 10 * 4 * i in vault........................ 17 + 1 + United States Government securities, Cash 4 Balances with other banks. 152 + 19 + 8 83 owing to the usual redistribution Other assets—net................. among the reserve banks at the end Demand Liabilities deposits, adjusted. $ 765 +$30 -$114 4 288 + 7 + deposits................. .. of each quarter in accordance with Time + 9 U. S. Government deposits. 23 11 + 15 Interbank deposits............... 290 earnings requirements. Borrowings............................. 9 Following discontinuance of gold Other liabilities..................... 16 - 2 1 sterilization, the Treasury made de Capital accounts................... 226 * Comparable figures not available. posits in the gold certificate fund of the reserve banks, receiving deposit credit in return. At this bank the demand and time balances, which partly Treasury account received a credit of reflected Treasury expenditures, and $50,000,000 on April 14. As these bal an increase of $15,000,000 in inter ances are disbursed, the reserves of bank deposits to the highest point in member banks will undergo further ex over ten months. Outstanding credit of the reporting pansion. Expenditures by the Treasury in this district were substantial and for banks continued to decline, with the that reason the Treasurer’s balance at result that both loans and investments this bank has increased only $32,700,000 are at the lowest points in over two in the past four weeks, notwithstanding years. A decrease of $12,000,000 in large transfers of funds from other loans reflected chiefly reductions of districts in addition to the gold certifi $5,000,000 in open market paper and $4,000,000 in commercial accommoda cate credit. Cash reserves of this bank increased tion. The change in commercial loans $82,700,000 to $580,000,000. Federal .was distinctly at variance with expe reserve note circulation declined rience last year, when loans of similar slightly, but the deposit liability in character increased $13,000,000 in the creased substantially ; as a consequence corresponding period. There was a the reserve ratio registered only a contraction of $5,000,000 in invest moderate advance from 72 to 75.1 per ments, of which $4,000,000 was in hold ings of United States Government se cent. Deposits at the reporting member curities. banks have risen $52,000,000 in the Increased deposits, loan repayments last four weeks to $1,366,000,000. and investment liquidation contributed This figure exceeded slightly the to increases of $47,000,000 and $19,000, amounts reported early in the year and 000 respectively in reserves with the was the greatest since October. There Federal Reserve Bank and in funds was an expansion of $37,000,000 in held with correspondents. MEMBER BANK RESERVES AND RELATED FACTORS Changes in weeks ending— March 30 April 6 April 13 April 20 Changes in four weeks Sources of funds: Reserve bank credit extended in district............... Commercial transfers (chiefly interdistrict).......... Treasury operations..................................................... - 0.9 + 8.6 + 6.9 + 3.1 + 6.1 +11.0 + 0.3 - 7.2 +23.0 - 2.3 - 4.3 + 9.9 + 0.2 + 3.2 +50.8 Total............................................................................ +14.6 +20.2 +16.1 + 3.3 +54.2 Uses of funds: Currency demand......................................................... Member bank reserve deposits................................. “Other deposits” at reserve bank........................... Unexpended capital funds.......................................... + 2.0 +12.7 + 0.0 - 0.1 + 4-7 + 15.2 + 0.2 + 0.1 + + + - 4.5 8.8 3.0 0.2 - 5.2 +11.0 - 2.8 + 0.3 + 6.0 +47.7 + 0.4 + 0.1 Total.......................... .*............................................... +14.6 +20.2 +16.1 + 3.3 +54.2 Philadelphia Federal Reserve District (Millions of dollars) Employment and Payrolls in Pennsylvania SECURITY HOLDINGS REPORTING MEMBER BANKS ____ PHILA. FED. RES. DISTRICT MILLIONS (All figures are rounded from original data) $ 400 Manufacturing Indexes U.S.GOVERNMEN T DIRECT OBLIGATI ONS - r 300 OTH :r SE CURITIES •----- _ 200 u.s. gov’t fullY GUARANTEED - OBLIGATIONS 100 - O 1935 1936 FREIGHT 1937 1938 CAR LOADINGS ALLEGHENY DISTRICT PERCENT 192 3-25AVG.= 100 Employment* Payrolls* (Indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and group indexes are weight Mar. change from Mar. change from 1938 1938 ed proportionately.) index Mar. Feb. index Mar. Feb. 1937 1938 1937 1938 All manufacturing__ 74 Iron, steel and products . 68 Non-ferrous metal prods. 106 Transportation equip. . . 46 Textiles and clothing.... 90 Textiles.........................,. 84 Clothing.......................... 115 Food products................... 100 Stone, clay and glass. . .. 64 Lumber products.............. 45 Chemicals and prods. ... 85 Leather and products---87 Paper and printing........... 95 Printing.......................... 92 Others: Cigars and tobacco.... 61 Rubber tires, goods. . . 74 Musical instruments . . 50 * Figures from 2319 plants. 100 -19 -23 -17 -36 -17 -18 -14 - 0 -28 -22 -11 -12 - 4 - 2 -1 -2 -0 -4 +2 +0 +6 -1 -1 -0 +1 +2 +0 +0 - 7 -22 - 8 -5 -1 -3 67 -32 64 -41 110 -24 36 -49 79 -21 75 -21 98 -22 101 - 1 53 -42 36 -30 85 -15 84 -17 97 - 4 94 - 2 49 66 46 -15 -33 -11 [Employehoursf Mar. 1938— per cent change from Mar. Feb. 1937 1938 +0 -41 -0 -48 -2 -34 -6 -52 +4 -30 +8 -31 +7 -25 -0 - 7 -1 -49 +4 -38 + 1 -28 +3 -19 +1 -12 +1 - 8 -0 -1 -1 -8 +3 +2 +7 -0 -2 +5 +0 +4 +2 +1 -18 -38 -19 -1 -8 -1 -1 -8 -2 f Figures from 2079 plants. General Index Numbers COAL TOTAL Covering twelve branches of trade and industry 75 Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) 50 MERCHANDI SE AND MISCEL LANEOUS General index (weighted)___ 25 O ADJUSTED EC R SEASONAL V ARIATlON 1933 1934 1935 1936 1937 1938 Percentage change—March 1938 from March 1937 City areas* Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilmington.......... Manufacturing Employ ment Wage payments Building permits (value) -16 -50 -17 -33 -15 -14 -13 -13 -13 -12 — 5 -24 -25 -32 -80 -30 -58 -22 -19 -15 -16 -23 -22 -15 -27 -30 - 21 - 42 - 44 6 - 57 - 80 - 12 + 457 + 31 8 - 50 - 53 - 38 Debits Retail trade sales -19 -17 + 4 -25 -16 -30 - 8 -10 -13 — 15 —21 -22 -38 -10 -27 -16 -23 -16 - 9 -18 — 12 Manufacturing............................. Anthracite mining....................... Bituminous coal mining............. Building and construction......... Quarrying and non-met. mining Crude petroleum producing. . . Public utilities.............................. Retail trade................................... Wholesale trade........................... Hotels............................................. Laundries....................................... Dyeing and cleaning................... Mar. 1938 index 104 116 79 111 53 83 158p 95 107 120 110 100 103 Per cent change from Mar. 1937 Feb. 1938 -15 -19 + 0 -15 -25 -27 + <j + 3 - 8 - 1 0 - 1 + 3 -0 -1 -1 +0 -1 +2 0 -1 +1 +5 -3 -1 +9 Payrolls Mar. 1938 index 135 163 81 167 67 124 180p 103 119 119 125 114 104 Per cent change from Mar. 1937 Feb. 1938 -25 -32 +14 -35 -17 -43 +12 + 2 - 5 +1 + 3 + 5 - 1 + 0 + o + 3 — 2 - 3 +ii 0 - 1 + 0 + 3 — 5 + 0 + 1 p—Preli mi nary. INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUTACTURING AND NON - MANUFACTURING INDUSTRIES AND SERVICES PERCENT PAYROLLS -21 -18 March 1938 from February 1938 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre.... Williamsport........ Wilmington.......... York....................... + + + + + + - 1 0 2 1 0 1 2 3 2 1 0 3 6 - 1 - 1 - 1 +1 + 2 - 2 + 5 + 5 + 1 + 2 - 0 - 1 - 3 - 20 + 169 - 29 - 53 + 332 + 86 + 157 +2064 + 791 - 13 - 16 + 83 - 19 +10 +10 +40 +26 +21 +24 +14 - 8 +19 +13 +41 +26 - 1 +34 +28 -10 +45 + 5 +26 +14 +11 +15 EMPLOYMENT - 0 1933 1934 1935 1936 1937 1938 * Area not restricted to the corporate limits of cities given here. Page Seven Index numbers of individual lines of trade and manufactures RETAIL TRADE PHILADE LPHIA FEDERAL RESERVE DISTRIC OTAL SALES Philadelphia Federal Reserve District V STOCKS Index numbers: percentages of the 1923-1925 average as 100 Adjusted indexes allow for the usual seasonal change in activity. Adjusted for seasonal variation Not adjusted Per cent chsinge Unadjusted indexes reflect merely the actual change which may or may not Mar. Jan. Feb. Mar. March 1938 1938 be typical. from 1937 1938 1938 1938 from 3 Month Year mos. 1937 ago ago DEPART ME NT SALES JvW' Retail trade Sales Total of all stores . . . Department.......... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit.................... 80 72 109 89 93 Stocks of goods Total of all stores. Department........... Women’s apparel. Shoe......................... Credit...................... 79 r 80 78 r 78p 60 r 55 56 55 112 107 107 102 68 71 72r 75 108 101 106 105p 86 76 71 75r 98 73 78 76 72 65 100 70 78 74p 69 58 91 67p 89 -14 -14 -20 -17 —25 — 5 _ 2 - 5 -12 - 9 — 5 + 13 -13 83 -12 75r — 15 70 -18 128 -18 91 -12 84 58 51 70r 88 58 52 59 55 53 74 53 70 66p 59 51 98 62p 74 STOCKS N + _ + - 0 2 4 3 1 _ + - 82 62 r 123 73 110 2 8 9 o 3 - 8* A + 4* -14* -15* 95 +35* 7* —25* - 6* 1 * _ 4* + 8* 23* -30* +22* 15* -27* + 2* q* +21* 28* -27* -29* 0* + 3* 94* -25* 77 - 1* - 9* — 2* — 13* + 2* + 1* 69 78 r 78 82 5T0CKS . ■\ ALLS 72 72 il •» • 11 ’l4l 1 kb V Y / * vv Q* - 2* 3* 1 Pig iron......................................... Steel.............................................. Iron castings............................... Steel castings.............................. Electrical apparatus........... .. . Motor vehicles............................ Automobile parts and bodies. Locomotives and cars............... Shipbuilding................................ Silk manufactures...................... Woolen and worsteds............... Cotton products....................... Carpets and rugs........................ Hosiery......................................... Underwear................................... Cement......................................... Brick............................................. Lumber and products.............. Bread and bakery products. . Slaughtering, meat packing.. Sugar refining........................... 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..................... SHOE STORES 97 86 114 131 28 68 40 50 49 74 89 22 51 27 41 238 252 101 56 85 31 63 31 176 40 100 63 152 93 73 20 65 30 34 25 102 72 62 115 75 99 176 118 89 90 148 129 33 25 47 48 41 41 59 42 81 75 18 15 52 47 26 21 258 r 246 68 73 36 38 32 34 47 58 79 87 10 lr 108 23 48 29 r 27 22 23 90 69 56] 95 65 91 162 70] 77 71 127] 77 * Computed from data unadjusted for seasonal variation. ^SALES 0.84 0.91 w DMEN's APP AREL STO RES Sales Total of all lines.... Boots and shoes... Drugs...................... Dry goods............... Electrical supplies. Groceries................ Hardware............... Jewelry................... Paper....................... Page Eight J i iiiV 4AW y/$ V S 75r 80p 71 49 53 57 91 101 112 62 67 r 76 96 104 107p Wholesale trade Output of manufactures ENS APPAR EL STORE OCKS Rate of stock turnover 3 months (actual, not indexes). Stocks of goods Total of all lines.... Boots and shoes... Dry goods............... Electrical supplies. Groceries................ Hardware............... Jewelry.................... Paper....................... STORE S Mar. Jan. Feb. Mar. 1937 1938 1938 1938 -25 + 2 + 1 -29 - 8 -20 -10 -19 — 5 + 6 + O + 7 +22 +n + 7 +107 - 7 + 5 - 0* +50 +1 + 7 + 2 - 1 + 8 - 5 - 6 - 4 -11 - 2 -62 -51 -52 -63 -43 -48 -31 -49 + 3 -28 —56 —45 -67 -13 -29 -35 -59 -33 _ 4* -12 - 4 -10 -17 -13 - 8 - 8 -41 -13 -21 -14 -40 — 54 —51 -46 -50 -34 -27 -30 -39 + 6 -35 -59 -48 -72 -32 -33 -47 —55 -32 - 3* - 7 -15 -10 -15 -10 - 6 -19 -31 -11 -20 - 9 -38 76 104 90 128 122 31 74 44 248 104 82 67 175 104 166 56 64 33 90 98 110 55 106 77 101 186 117 89 91 147 134 p—Preliminary. 39 49 45 78 83 19 51 27 257 58 31 32 39 66 91 14 28 23 88 92 56 54 73 60 90 129 86 73 68 161 82 35 50 42 66 78 19 56 27 253 r 72r 37 35 48 82 llOr 16 28 r 21 87 r 90 59 51 75 64 92 157 80 83 72 141 82 29 51 44 47 69 16 51 23 255 75 37 37 58 91 118 37 27 22 87 86 105 51p 88 67 93 172 69p 77 72 127p 80 r—Revised. SALES A ka V u Ah mi * CRED T STORES Jr’ \ £__ plj 7*!a jT 1934 SALES 1935 1936 1937 1938
@FedFRASER