The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT NOVEMBER i, i93i_ By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK »/ PHILADELPHIA Business and Financial Conditions in the United States Industrial activity and shipments of commodities by rail increased from August to September by considerably more than the usual seasonal amount. There was also a more than seasonal increase in the volume of factory em ployment and payrolls. The general level of prices, after advancing for three months, showed a decline begin ning the early part of September. Production and employment. Volume of industrial production, as measured by the Board’s seasonally adjusted index, based on the 1923-1925 average, increased from a low point of 58 in July to 60 in August and 66 in Sep tember. The advance in September reflected chiefly large increases in ac tivity at textile mills, shoe factories, meat packing establishments, and coal mines. In the steel industry, where activity had shown none of the usual seasonal increase in August, opera tions expanded considerably during September and the first three weeks of October to about 20 per cent of capacity. Daily average output of automobiles and lumber in September showed little change from recent low levels. industrial production Factory employment increased from 58.8 per cent of the 1923-1925 average in August to 60.3 per cent in Septem ber, according to the Board’s season ally adjusted index. Considerable in creases were reported in the cotton, woolen, silk, hosiery, and clothing in dustries and smaller increases at car building shops, foundries, cement mills, and furniture factories. In the automobile, tire and electrical machin ery industries, employment declined. During the three months ending with September, value of building con tracts awarded, as reported by the F. W. Dodge Corporation, was about the same as in the preceding three months, although awards are usually smaller in the third quarter. In the first half of October the daily average of contracts declined somewhat. • Distribution. Volume of freight car loadings increased by considerably more than the usual seasonal amount in September, reflecting chiefly larger shipments of coal and miscellaneous freight. Department store sales inci eased from the low level of August by somewhat more than the usual sea sonal percentage. RAILROAD FREIGHT-CAR LOADINGS Wholesale prices. Wholesale commod ity prices, as measured by the monthly index of the Bureau of Labor Statis tics, showed little change from August to September. During August and early September there was a general advance in prices followed by a decline which continued through the first half of October, when the average was 2 per cent below the high point in early September and 1 per cent above the low point of early summer. Substan tial decreases occurred after the be ginning of September in the prices of many domestic agricultural commodi ties including cotton, grains, and live stock, and also in prices of gasoline, FACTORY EMPLOYMENT pen cm 120 1927 t928 1929 1930 1931 1932 Federal Reserve Board's index of factory em ployment with adjustment for seasonal varia tion. (1923-1925 average = 100.) m 6500 RESERVE BANK CREDIT and FACTORS CHANGES in &S00 6000 % Monty in Circulation 5000 ^ 5000 MOO --------- 4000 ' ... Gold Slock 1 *000 3500 Mtinter Bonk Rrwrw BtUnco ----------- ■— - > T "■sar v 500 1929 Index number of industrial production, ad justed for seasonal variation. (1923 1925 aver age =100.) 1930 /> J 1931 ““ "‘iWi"' Monthly averages of daily figures. Latest fig ures are averages of first 22 days in October. non-ferrous metals, and imported raw materials; while prices of wool, worsted yarns, coal, and lumber in creased somewhat during this period. Bank credit. During September and the first three weeks of October there were further additions to the reserve funds of member banks, arising from increases in the country’s stock of monetary gold, from an unseasonal re turn flow of currency, and from issues of additional national bank notes. Member bank indebtedness to the increase. There was considerable growth in government deposits and in bankers’ balances during the period; time deposits also increased. . Money rates in the open market de clined to lower levels during the first half of October, the rate on prime commercial paper being reduced from a range of 2-2J4 to a range of 134-2 per cent, and the rate on 90-day bank ers’ acceptances from 34 of one Per cent to J4 of one per cent. Rates for call loans on stock exchange collateral declined from 2 per cent to 1 per cent. reserve banks declined by more than $100,000,000 from September 7 to Oc tober 19 and their reserve balances in creased by $180,000,000. During September and the first two weeks of October reporting member banks in leading cities showed a fur ther growth in investment holdings, largely of United States Government securities, but to some extent of other investments. Loans of reporting banks declined further in September; in the early part of October loans at banks in New York City showed an Business and Financial Conditions in the Philadelphia Federal Reserve District Industrial employment and payrolls Industrial conditions have shown further improvement. Output of fac showed further increases in Septem tories has increased more than usual ber, both manufacturing and non for three successive months, and this manufacturing industries sharing in exceptional gain has been fairly well these gains. About one-half of the maintained in early October, even reporting factories in Pennsylvania in though activity in some of the lines dicate that further increases in em was beginning to slacken seasonally. ployment and payrolls occurred in the Production of coal also has increased first part of October. more than usual between August and September as well as in early October. Manufacturing. A further improve Awards of building contracts de ment in the manufacturing industry creased sharply in September but took place in September and continued showed a noticeable upturn in the first in the first part of October. Sales of three weeks of October. More than such finished products as textiles, ordinary gains occurred in freight car clothing, shoes, and certain building loadings and retail trade sales. Some materials have increased since the slight improvement is noted in collec middle of last month, and in some in tions at retail and manufacturing, stances comparisons with last year while at wholesale payment of ac were quite favorable. New orders counts showed little change. Business showed gains in a number of lines, so failures continued on the decline both that the total of unfilled orders for in number and in liabilities. Neverthe less, comparisons with other years have manufactured products on the books continued unfavorable, although the of reporting factories was slightly spread between the current and past larger than in the previous month. levels of activity has been narrowing. Stocks of finished goods have been re duced in most cases during the month and continued smaller than a year ago. Inventories of raw materials, while showing some increases in September and through the first part of October, remain lower than last year in most lines. The majority of concerns report no material change in collections, in creases in some lines being practically offset by declines in other lines. In comparison with a year ago, settle ments of accounts continued to be less favorable, although in a few instances there have been improvements. Many concerns show a continued firmness in prices of their products, but comparisons with last year are still adverse. National figures for Sep tember show a slight advance in prices of manufactured commodities, the sharpest rise from August occurring in quotations for textiles, hides, and building materials. Compared with a year ago, the general level of prices for manufactured products in SepELECTRIC POWER INDUSTRIAL PRODUCTION PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT OUTPUT MANUFACTURING 0 in i INDUSTRIAL / CONSUMPTION COAL MINING ADJUSTED FOR SEASONAL VARIATIONS ADJUSTED FOR SEASONAL VARIATIONS 1927 Page Tzvo 1928 1930 1932 1928 1932 1933 tember was about 5 per cent lower. Business Indicators In the first three weeks of October, a Philadelphia Federal Reserve District slight weakness developed in quota tions for many manufactures. Factory employment and payrolls in Index numbers—expressed in percentages of 1923-1925 average, which index numbers make is taken as 100 this district showed substantial in “Adjusted” allowance for the usual seasonal changes which result from an creases from August to September, uneven distribution of business Adjusted for seasonal variations Not adjusted between the months of the year. most sections of the district sharing They are the most significant in the gains. Pennsylvania factories, indexes because they show im Percentage comparison provement or decline beyond the for instance, reported an increase level usually to be expected. of 4 per cent in employment, 8 per Sept. 1932 9 ‘Unadjusted” indexes reflect Sept. Aug. Sept. Sept. Aug. Sept. 1931 1932 1932 cent in payrolls, and almost 10 per merely the actual changes which 1931 1932 1932 1932 may or may not be up to the with 9 cent in operating time during Sep usual seasonal expectations. Month Year months tember. These gains were greater than 1931 ago ago usual and were nearly twice as large as those in August. Compared with a Productive activity Manufacturing—total................. 74.7 55.6p 61.3p + 10.3 -17.9 -23.8 76.4 55.2p record low level reached in July, Penn Metal products......................... 52.8 25.3 27.8 + 9.9 -47.4 -47.5 53.6 26.5 28.2 sylvania employment in September was Textile products...............’ ' ’ ' 87.3 71.8 91.Op +26.7 + 4.2 -17.6 88.0 68.1 91.8p Transportation equipment. .. 54.4 41.2r 44.1 + 7.0 -18.9 -11.7 51.1 40.Or 41.6 7 per cent higher and payrolls nearly Food products........... ............... 77.2 70.1 67.6p - 3.6 -12.4 -12.4 80.3 70.7 69.2p Tobacco and products............. 13 per cent larger. All manufacturing 85.9 82.1 74.6 - 9.1 -13.2 -17.8 100.1 85.4 86.9 Building materials................... 40.6 20.6 22.4 + 8.7 -44.8 -39.7 44.7 23.8 24.7 groups shared in these gains except Allied chemical products........ 104.1 79.9 81.5p + 2.0 -21.7 -14.2 103.4 80.3 80.9p Leather and products............. 119.0 95.0 100.3p + 5.6 -15.7 -19.1 129.2 97.1 110.6p transportation equipment, and chemi Paper and printing.................. 97.0 72.2 72.5 + 0.4 -19.6 96.1 70.2 71.9 Electric power output............. 193.9 171.8 169.1 - 1.6 -25.3 cal and related products. The em -12.8 7.7 190.0 163.2 165.7 Elec. pwr. used by industries. 135.0 107.3 116.0 + 8.1 -14.1 -12.1 143.1 110.5 123.0 ployment index number in Pennsyl Factory employment Penna. ... + 3.9* -16.5* -17.2* 72.6 58.3 60.6 vania rose to 61 and the payroll index Factory wage payments Penna.. + 7.5* -33.7* -36.3* 54.3 33.5 36.0 advanced to 36; compared with a year Coal mining. . 64.7 48.0 59.7 +24.4 - 7.7 -22.7 65.7 47.6 60.7 ago, employment thus was still 17 per Anthracite.. 65 48 61 +27.1 - 6.2 -21.7 66 48 62 Bituminous. 62.7 47.8 51.9 + 8.6 -17.2 -28.8 64.0 44.9 52.9 cent smaller and wage payments 34 per cent less. Building and real estate Output of factory products has con Contracts awardedf—total......... 69.7 37.1 35.0 - 5.7 -49.8 -48.0 66.9 36.4 33.6 Contracts awardedf—residential 22.5 15.0 15.4 + 2.7 -31.6 -42.4 20.9 14.1 tinued upward since July, reflecting a 14.3 Permits for building...................... 17.3 14.7 9.7 -34.0 -43.9 -54.1 15.6 13.2 8.7 Mortgages recorded in Phila. .. . 47.1 more favorable trend than in the fall 20.9 38.3 +83.3 -18.7 -27.6 36.3 16.5 29.5 Real estate deeds recorded in of the past two years. Our prelimi Philadelphia.......................... 54.8 49.9 31.5 -36.9 -42.5 - 8.1 50.4 44.9 29.0 Exclusive of Sheriff deeds nary index number of productive ac (1930 = 100)......................... + 3.3* -22.2* - 9.7* 75.7 57.0 58.9 Sheriff deeds Q930 = 100). tivity in this district, which takes -73.8* -42.9* +ii.i* 60.9 132.6 34.8 Writs for Sheriffsales in Phila. . 1053.0 1134.0 1315.1 + 16.0 +24.9 +10.0 1221.5 1088.6 1525.5 account of the number of working Distribution days and seasonal changes, rose from Retail trade—sales....................... 77.2 52.3 57.2p + 9.4 -25.9 -22.9 69.1 56 in August to 61 per cent of the 41.2 51. Ip Retail trade—stocks 70.7 55.2 53.9p - 2.4 -23.8 74.1 52.6 56 .4p Wholesale trade—sales............... 1923-25 average in September, show 69.0 55.5 55. Op - 0.9 -20.3 -19.8 78.3 52.5 62.5p Wholesale trade—stocks........ .. ’ 75.8 64.9 64.3p - 0.9 -15.2 78.4 65.4 66.3p ing an exceptional gain of 10 per cent. Freight car loadings (Allegheny district) ......................................... 66.0 45.6 47.9 + 5.0 -27.4 -27.8 The rise in the national index 73.3 47.9 53.2 Life insurance sales.................... 121.4 103.3 105.6 2.2 -13.0 -15.8 97.1 86.8 84.5New passenger auto registrations 72.5 43.2 46.1 + amounted to about the same percent + 0.7 -36.4 -32.4 69.6 47.5 44.3 age and the upward trend since July Business liquidations coincided with that for this district. Number......................................... -15.2* + 3.6* +17.8* 156.9 191.7 162.5 Amount of liabilities......... Compared with a year ago, the rate of - 8.1* +70.0* +64.0* 123.5 228.4 210.0 factory production was 18 per cent Payment of accounts lower, while for the country it was 13 Check payments........................... 91.1 59.9 61.1 + 2.0 -32.9 -31.6 86.5 50.9 58.0 Rate of collections (actual, not per cent less. indexes) All manufacturing groups showed Retail trade................................. + 0.9 -10.0 24.1 21.5 21.7 Wholesale trade................. - 0.5 -13.7 more than customary increases except 64.1 55.6 55.3 food products and tobacco and its products. The textile industry in Per cent change from (000,000’s omitted Sept. June July particular continued to show extraor Aug. Sept. in dollar figures) 1931 1932 1932 1932 1932 Month Year dinary increases which were shared by ago ago all of its important branches. Output of certain building materials and metal Banking and credit products also registered unusual ad Reporting member banks Loans to customers................... $759 $637 $625 $618 $613 - 0.8 - 19.2 vances, reflecting a higher rate of Open market loans and invest ments ........................................ 588 operation in factories making pro 462 462 477 494 + 3.6 - 16.0 All member banks—net demand ducers’ goods. and time deposits...................... 2,351 1,962 1,963 1,957 1,964 + 0.4 - 16.5 Information for thirty-one individ Bankers’ acceptances outstand ual industries shows that more than ing .................................................. 17.7 13.6 12.6 11.2 12.3 + 9.8 - 30.5 ordinary gains occurred during the Federal Reserve Bank month in nineteen industries, no meas Bills discounted.......................... 32 66 72 65 57 -12.3 + 78.1 Other bills and securities. . . ! ! 71 134 142 144 urable change in one line, and either 144 0.0 +102.8 Reserve ratio.......................... 78.1% 55.6% 52.6% 53.8% 55.2% + 2.6 - 29.3 larger than seasonal declines or less than usual gains in eleven industries. Page Three TEXTILE FIBERS BUILDING CONTRACTS PHILADELPHIA FEDERAL RESERVE DISTRICT UNITED STATES MILLIONS Of lbsH PERCENT DOLLARS PER LE 20 300 — - «****+PRICE COTTON TOTAL WOOL RESIDENTIAL 1927 1928 1929 1930 1931 1927 1932 Source: F. W. Dodge Corporation This broadening has continued since July and suggests a decided improve ment in trend, particularly when com pared with the contrary tendency that prevailed in these lines in the past two years. While generally output of indi vidual products has been under last year’s volume, nevertheless, activity in such industries as shipbuilding, silk, hosiery, underwear, meat packing, sugar refining, and shoes showed marked gains over September 1931. Additional evidence of unusual in crease in activity is afforded by larger consumption of such industrial fuels as bituminous coal and of electric power, both showing extra-seasonal gains of over 8 per cent. Production of electric power increased slightly but not as much as was normally expected. The largest relative gains in the sale of electricity were reported for light ing purposes and for industrial uses. Building and construction activity showed some gain from August to September, while new contract awards in the aggregate declined more than was expected, and were only about one-half of the total awards a year ago. Contracts let for residential buildings, however, in creased more than seasonally in Sep tember but continued considerably smaller than last year. In the first part of October, total awards have in creased more than usual but were less than one-half of those a year ago. Estimated dollar cost of proposed building under permits issued in this district declined materially, after a sharp increase in the preceding month ; in the first nine months of this year, they amounted only to about 46 per cent of the building volume contem plated in the same period last year, re Building and real estate. Digitized Page for FRASER Four 1928 1929 1930 1931 1932 Sources: U. S. Bureau of the Census, Fairchild’s Index, Dun’s Review flecting mainly lower prices. Con struction costs continue at the lowest level shown in many years. Changes in employment, payrolls and working time in the building in dustry, exclusive of street, highway, and general construction, are shown in the following table: Building (Does not include streets, highways, and general con struction) Pennsylvania............ Allentown.............. Altoona.................. Clearfield............... Erie......................... Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Pittsburgh .......... Pottsville............. Reading............... Scranton................ Wilkes-Barre........ Williamsport........ York ..................... Sept. 1932 compared with Aug. 1932—per cent change Em ployment ' Payrolls Operat ing time 1.0 - 2.0 - + 26.0 - 27.3 + 114.3 + 5.4 - 3.8 - 25.4 - 9.6 - 4.0 + 9.6 - 11.8 - 1 .8 + 1.3 + 15.3 - 1.3 - 20.3 + 5.6 - 4.3 +98.4 - 1.3 + 1.9 -10.2 -20.1 - 6.4 - 6.2 - 9.9 + 7.3 -11.6 +53.1 + 9.0 - 8.4 + 13.2 + 16.9 +102.8 + 9-1 + 1 .8 - 24.2 - 23.0 - 4.5 - 3.7 - 10.4 + 3.1 - 16.6 + 28.0 + 9.6 - 10.3 + 1.7 Source: Penna. Dept, of Labor and Industry The real estate situation showed a slight improvement between August and September. The number of real estate deeds recorded in Philadelphia, exclusive of sheriff’s deeds, for in stance, increased, while registration of deeds incident to foreclosures declined sharply. Mortgages recorded also in creased substantially. Although recent rains have relieved the drought in the east ern and southeastern sections of this district, they came too late to be of much benefit to late crops and pas tures. Pennsylvania tobacco particu larly was adversely affected by the lack of moisture, and as a result, the Sep Agriculture. tember 1st estimate has been revised downward. Estimated yields of field crops indi cate a substantial reduction this year as compared with the actual harvest last year and, with the exception of corn, they are expected to be below the average of the five-year-period, 1926-1930, as indicated by the accom panying chart. Preliminary estimates of the fruit crop also show a sizeable reduction from the yields realized last year. Prices of farm products have shown weakness, following a rising tendency for several weeks. The condition of live stock varies widely in different localities. In some sections the condition of dairy herds has been generally satisfactory, while in others insufficient pasturage has af fected them adversely, especially when no additional feed was used. Swine slaughterings are about equal to those of a year ago and new hogs are said to be in good market condition for this time of the year. Cold storage stocks of butter and eggs showed a substan tial reduction during September while poultry holdings increased somewhat. As compared with a year ago, stocks of butter on October 1st were 35 per cent larger; holdings of poultry and eggs, on the other hand, declined sharply in this period. Coal. Demand for anthracite has in creased appreciably since the middle of last month. Sales by retail yards in Philadelphia have increased sea sonally for three months in succession; this is a somewhat more favorable trend than that at the same time last year. "Output of collieries showed a larger than seasonal gain from August to September and was only about 6 per YIELD OF FARM CROPS FREIGHT CAR LOADINGS PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT 1926 | 1927 | 1928 1929 [ I930_ I ALLEGHENY DISTRICT 193r | 7932 PERCENT MaVC. 1926 -1930 100 WHOLESALE PRICES ^ OF FARM PRODUCTS -U.S. MERCHANDISE AND Hl93a(0CT. I cst) MISCELLANEOUS 80 60 PRODUCTION TOTAL AOJUSTEP FOR SEASONAL VARIATIONS CORN WHEAT WHITE POTATOES TOBACCO Sources: Department of Agriculture and Bureau of Labor Statistics cent below a year ago. In the first three weeks of October, production increased further. September ship ments exceeded those of the preceding month by nearly 35 per cent and were only slightly smaller than in the same month last year. Wholesale prices of hard coal increased in September but were 7 per cent lower than those of a year earlier. The market for Pennsylvania bitu minous coal has been more active owing largely to an increased demand from industry. Colliery output, which averaged about 250,000 tons daily dur ing September, increased by a larger amount than usual and exceeded that of any month since last April. In early October production showed a further gain. Although shipments in creased substantially during Septem ber, they were about 18 per cent smaller than a year ago. Wholesale prices of soft coal throughout the country showed a fractional decline from August to September and were over 3 per cent lower than last year. Distribution. Activity in retail trade has increased considerably in the past six weeks as it usually does at this period. In September sales showed a gain of 9 per cent over the usual in crease that occurs between August and September. Sales of men’s apparel alone registered a sharp decline. Every important trading area of this district reported exceptional gains in retail sales over August. Preliminary reports indicate further seasonal gains in the first half of October. Prices have shown noticeable strength since the middle of last month. Our index number of retail trade sales rose from 52 in August to 57 per cent of the 1923-1925 average in Sep 1927 1928 1929 1930 1932 Source: American Raihvay Association tember, when allowance is made for the number of business days and the usual seasonal trend. Last year this index was 77. Sales in the "first nine months of this year by department, apparel, shoe and credit stores were 23 per cent smaller than in the same pe riod last year. This unfavorable com parison continued to reflect the influ ence of lower prices and industrial conditions generally. While inventories increased in most of the reporting lines the aggregate gain was not as large as that which usually occurs from August to Sep tember. Department stores in Phila delphia and women’s apparel stores were the only reporting lines which showed somewhat more than seasonal increases in their stocks of merchan dise. The rate of stock turnover, while increasing seasonally, has been almost 9 per cent less rapid this year than last. Settlements of accounts quickened slightly, the ratio of collec tions during September to outstand ings at the beginning of that month being almost one per cent higher; com pared with a year ago, however, this percentage was 10 per cent lower. Wholesale trade sales in the aggre gate increased from August to Sep tember, but the rate of this gain was not quite as large as it should have been, so that more than seasonal gains in such lines as shoes, drugs, dry goods, and jewelry were practically offset by less than usual increases in the sale of electrical supplies, grocer ies, hardware and paper. Early reports for October indicate increased sales in all lines except hardware. Compared with a year ago, wholesale and jobbing business was 20 per cent smaller, the largest declines occurring in electrical supplies, hardware and jewelry. Wholesale stocks of merchandise, while showing little change in the month, were 15 per cent less than at the end of September 1931, reflecting partly lower prices as in the case of sales. The rate of stock turnover was 8 per cent lower this year than last. Collections showed little change dur ing the month but were 14 per cent slower than a year ago. Freight car loadings in this section have shown an upward trend since July, and the gain in September was 5 per cent over the estimated seasonal rise. This improvement was due prin cipally to larger shipments of coal, merchandise, and miscellaneous com modities. In comparison with last year, loadings continued about 27 per cent smaller. Sales of new passenger automobiles were smaller in September than in August, but this decline was not as large as that at the same time in other years. Sales of life insurance have been upward since the second quarter of this year, and our index number, which takes account of seasonal changes, was higher in September than in August by over 2 per cent. During the past month member banks reduced borrowings from the reserve bank and added to their reserves. Loans con tinued to decline at the banks which report weekly, but deposits have shown an increase. Treasury disbursements in this dis trict, including new issues of national bank notes, exceeded local receipts by more than 5 millions in the period from September 21 to October 19. Funds at the disposal of the banks also Financial conditions. Page Five MERCANTILE TRADE SALES OF LIFE INSURANCE PHILADELPHIA FEDERAL RESERVE DISTRICT NEW PAID-FOR ORDINARY INSURANCE PERCENT 200 PERCENT RETAIL SALES PENNSYLVANIA DELAWARE NEW JERSEY UNITED STATES WHOLESALE SALES ADJUSTED FOR SEASONAL VARIATIONS ADJUSTED FOR SEASONAL VARIATIONS 1927 1928 1931 1932 929 1928 1930 193 I 1932 Source: Life Insurance Sales Research Bureau were augmented by a gain of 4 mil lions in commercial and financial transactions with other districts and by the return of money from circula tion. Borrowings from this bank were reduced 5]A. millions, mainly by banks outside of Philadelphia, and re serve deposits increased 5 millions, reflecting chiefly larger sums to the credit of Philadelphia banks. Coincident with the reduction in bills discounted held by this bank, there was a drop in the number of borrowing banks to the lowest point in the past year. On October 19 the total of discounts was 49 millions, which was only about half the amount reported a year ago, when currency demand was very active. The bank’s holdings of other bills and securities changed little in the past four weeks. Cash reserves increased and the re serve ratio rose from 55.1 to 56.4 per cent. Loans to customers at the weekly reporting member banks show a fur ther decline from 611 to 602 millions and now are nearly 20 per cent less than a year ago. Such loans are made for many different purposes, including the carrying of securities and loans to other banks, as well as advances of a specific commercial character. In connection with this decline in loans, it is to be noted that in September the dollar volume of sales at retail was 26 per cent and at wholesale, 20 per cent, lower than a year ago, and that the volume of manufacturing output in the district was 18 per cent smaller. The reporting banks were allotted nearly 11 millions of new government securities on October 15, for which payment was made by deposit credit, and this is approximately the amount Page Six Oct. 19, 1932 Reporting member banks (000,000’s omitted) Loans to customers: On securities.................. $ All other......................... Loans to open market . . United States securities . Other securities................. 303 $ 299 9 23G 276 Sept. 21, 1932 306 305 10 225 275 Total loans and investments.............. *J.123 $1,121 Net demand and time deposits.............................. 907 898 Government deposits... . 50 50 187 Due to banks.................... 212 Due from banks............... 143 no Oct. 21. 1931 $ 396 352 24 194 300 $1,266 1,013 21 170 71 of the total increase in such securities during the four weeks ended October 19, suggesting that sales of the new issue immediately after allotment were small. Government deposits show practically no change in total, taking the four weeks as a whole, but net de mand deposits increased 8 millions and there also was a small gain in time de posits. Balances to the credit of other banks increased 25 millions, but the re porting banks in turn show an increase of 33 millions in amounts due from banks. Deposits of all member banks, Phila. Fed. Res. District (000,000’s omitted) Daily averages Net de mand $ June........................ July........................ Aug......................... Sept......................... 1931—Sept......................... 1930—Sept......................... Time 955 $1,007 1,000 962 962 1,001 955 1,002 963 1,001 1,149 1,202 1,177 1,167 Total $1,962 1,962 1,963 1,957 1,964 2,351 2,344 There was an increase from 1,957 millions in August to 1,964 millions in September in average net demand and time deposits of all member banks. This was the most substantial gain in any month since the sweeping de cline in deposits which set in a year ago. Deposits in the larger cities in creased and even the smaller towns, as a whole, show a virtual cessation of the decline which had been in prog ress for many months. Outstanding acceptances of banks in this district increased from $11,191, 000 to $12,271,000 during September. This was the largest increase in any month of the past year and propor tionately was considerably greater than in the rest of the country. Even so the total at the end of the month was more than 30 per cent lower than a year ago, while the national totals show a decline of over 31 per cent. The issue of Treasury 3 per cent notes, dated October 15, resulted in subscriptions for 634 millions in this district. The total allotted locally, however, was only 21 millions, of which nearly 7 millions was in ex change for maturing securities. Changes in— Federal Reserve Philadelphia (Dollar figures in millions) Oct. 19, 1932 Bills discounted for banks in—■ Philadelphia......... $ 10.1 Other communities 38.7 One year -$0.3 - 5.2 -$48.5 - 0.9 —$5.5 0 -*49.4 - 11.4 - 0.1 0 + 81.3 - 5.4 $192.6 — $5.6 +$15.1 238.9 - 6.1 - 21.6 121.0 1.4 + 5.1 - 2.1 - 10.6 - 0.3 Total bills discounted $ 48.8 Bills bought.............. 3.2 United States securities................... 139.3 1.3 Other securities........ Total bills and securities................... Fed. res. note circulation.................. Member bank reserve deposits . Government deposits Foreign bank deposits.................. Cash reserves............ Reserve ratio....... Four weeks - 15.7 - 0.2 0.8 - 60.4 204.4 + 3.1 56.4% + 1.3% - 8.1% I BILLS DISCOUNTED MILLIONS Employment September 1932 FEDERAL RESERVE BANK OF PHILADELPHIA Employment and wages in Pennsylvania FOR PHILADELPHIA ' FOR BANKS OUTSIDE OF' PHILADELPHIA AVERAGE Of FIRST 3 WEDNESDAYS 1929 CURRENCY DEMAND MILLIONS PHILADELPHIA FEDERAL RESERVE DISTRICT 1929 1930 193 I 1932 Percentage change—Sept. 1932 from Sept. 1931 City areas* Allentown............. Altoona.................. Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Williamsport........ Wilmington.......... Y ork....................... Employ ment Wage payments -14.6 -24.6 - 9.3 0.0 -19.9 -17.9 -14.5 -10.5 -16.1 + 6.8 -36.4 + 6-6 -10.3 -34.3 -39.8 -25.9 -50.2 -46.5 -26.7 -31.5 -23.7 -28.2 -11.7 -47.2 + 5.4 -22.8 Buildingpermits (value) Debits + - -29.2 -29.7 -24.6 -41.2 -39.5 -33.6 -28.3 -28.3 -33.1 -29.5 —41.0 -34.8 -32.5 36.0 39.0 97.0 22.2 71.2 9.2 61.2 46.1 13.6 78.3 43.3 65.1 79.0 Retail trade sales -18.8 -36.3 -21.1 -22.7 -20.6 -22.6 -19.7 -15.5 —18.4 -12.7 + 6.7 + 6.3 + 4.1 + 0.5 + 4.7 + 5.6 + 0.8 +19.3 + 5.1 + 6.9 -15.9 + 1.0 + 3.9 +10.2 + 4.4 0.0 - 4.2 + 11 .3 + 13.6 + 19.0 + 17.9 + 2.9 - 1.6 - 9.4 - 2.5 + 5.1 - 79.3 +337.1 - 61.0 +101.2 - 13.4 - 1.9 + 47.5 +101.6 - 85.1 - 19.0 - 21.4 - 92.0 + 46.2 - 1.2 + 2.2 - 1.4 - 1.3 -10.8 + 6.6 + l.i - 4.9 -10.3 + 7.1 - 3.7 +12.5 — 0 5 * Area not restricted to the corporate limits of cities given here. Per cent change since index Sept. 1931 Aug. 1932 Sept. 1931 Aug. 1932 All manufacturing industries (51)....................................... 60.6 -16.5 + 3.9 36.0 - 33.7 + 7.5 Metal products........................... Blast furnaces........................ Steel wks. and rolling mills. Iron and steel forgings........ Structural iron work............ Steam & hot wtr. htg. app. Stoves and furnaces............. Foundries........................ Machinery and parts........... Electrical apparatus............. Engines and pumps.............. Hardware and tools............. Brass and bronze products. 49.5 37.1 14.1 42.4 74.7 77.8 61.1 48.7 51.5 68.0 33.4 55.1 52.5 -24.5 - 4.4 -21.1 -34.7 -20.4 - 9.8 - 5.6 -19.4 -31.0 -32.3 -32.5 -19.0 -16.1 + 1.9 + 1.1 + 0.9 - 6.6 + 2.0 + 5.7 + 1.2 + 1.2 - 0.2 + 3.5 +17.6 + 0.2 •0.0 24.1 13.6 19.0 21.7 38.7 42.4 44.1 19.7 24.7 42.8 16.4 28.1 29.0 - 45.6 50.4 47.7 48.9 39.7 26.0 8.5 41.7 46.9 46.1 50.6 39.6 40.0 + 3.0 - 2.2 - 3.1 - 2.3 + 4.6 - 8.2 +15.7 + 1.5 - 2.0 +20.9 +25.2 + 5.2 - 1.7 Transportation equipment___ Automobiles............................ Auto, bodies and parts.... Locomotives and cars.......... Railroad repair shops.......... Shipbuilding........................... 36.7p 25.9 28.4 20.8 58.8 50.1 -32.8 -55.0 -42.2 -11.5 -10.5 +23.1 - 5.2 -27.7 -18.4 + 4.0 + 0.3 - 4.2 20.5p 13.5 19.8 10.4 21.8 78.3 - 51.1 - 51.1 - 62.1 - 37.3 - 57.6 +133.0 - 1.0 - 9.4 - 8.3 — 7.1 +17.2 + 8.6 Textile products......................... 84.9 Cotton goods................... . 57.1 Woolens and worsteds......... 64.6 Silk goods................................ 97.9 Textile dyeing & finishing.. 78.2 Carpets and rugs.................. 49.7 Hats......................... 58.5 Hosiery.............................. 101.2 Knit goods, other.................. 87.1 Men’s clothing....................... 70.9 Women’s clothing................. 90.7 Shirts and furnishings......... 119.6 - 0.6 - 9.2 + 2.4 + 11.6 -11.4 -22.9 -20.6 + 2.2 - 4.3 -14.9 -13.0 -20.4 +13.4 +14.2 +23.5 +13.8 +10.0 +10.2 + 3.2 + 7.4 +32.2 +11.0 +35.0 +32.3 61.0 45.4 43.2 72.4 69.5 28.2 55.4 76.9 61.7 50.9 58.5 77.3 + + - 13.1 10.8 17.1 15.2 11.8 46.5 1.3 1.3 21.0 31.7 30.1 37.4 +30.3 +37.6 +14.2 + 7.3 +11.9 +27.4 +54.1 +43.5 +22.9 +48.1 +26.5 Foods and tobacco............. Bread and bakery products Confectionery......................... Ice cream...................... Meat packing......................... Cigars and tobacco............... 96.6 94.6 89.4 86.S 93.8 98.0 - 9.1 -10.0 -16.5 -18.7 - 0.1 - 5.2 + 2.7 0.0 +13.0 -12.0 + 1.5 + 2.2 78.3 77.5 75.6 71.6 74.4 75.9 - 16.3 -19.1 - 22.5 - 32.0 - 5.8 - 8.8 + 26 0.0 +15.8 -13 3 + 7.5 + 0.9 Stone, clay & glass products. Brick, tile and pottery........ Cement.............................. Class................................ 45.9 46.6 42.5 52.4 -18.9 -29.6 -14.1 - 9.0 + 8.0 +25.7 - 7.6 21 .2 19.2 19.5 30.5 - 45.1 - 52.0 -45.1 - 33.1 + 1.0 + 2.1 + 18.9 -20.4 Lumber products....................... Lumber and planing mills.. Furniture............................ Wooden boxes........................ 45.3 25.2 52.6 56.2 -25.7 -26.1 -28.5 -11.1 + 6.1 - 4.9 +15.9 - 1.9 31.1 16.2 38.1 35.7 - 46.7 41.5 48.0 40.6 + 9.1 - 7.4 +26.6 - 8.9 Chemical products.................... 79.3 Chemicals and drugs............ 49.8 Coke....................... 55.5 Explosives............................... 63.9 Paints and varnishes........... 81.1 Petroleum refining............... 124.8 - 6.9 -23.1 — 5.6 -16.4 - 6.7 + 0.4 + + - 1.7 63.0 2.2 37.7 18.3 5.3 0.9 52.4 1.8 54.4 1.4 114.4 - 15.5 37.8 43.5 34.7 29.0 1.4 — 2 5 - 3.3 — 0 5 +22.7 + 60 - 4.2 Leather and rubber products. Leather tanning.................... Shoes.............................. Leather products, other... . Rubber tires and goods.... 83.9 81.1 98.0 67.1 77.5 -13.5 -20.3 - 2.2 -19.0 -11.4 + + + + 0.7 1.5 3.4 0.8 1.4 60.1 54.7 80.2 56.9 54.0 - 32.6 41.2 7.5 27.2 43.1 + 0.5 -1.1 +16.7 + 09 -29.0. Paper and printing.................... Paper and wood pulp.......... Paper boxes and bags.......... Printing and publishing... . 81.7 74.4 61.3 86.3 -10.3 - 5.0 -26.3 -10.9 + + + 2.6 7.7 0.2 0.6 64.9 47.7 52.0 73.0 - 25.3 20.5 36.4 25.8 + 2.7 + 37 +14.3 + .i Anthracite mining..................... 54.4 Bituminous coal mining.......... Canning and preserving.......... Construction and contracting. Hotels.................................. Laundries.................................. Dyeing and cleaning................ Public utilities.......................... Quarrying and non-metallic mining...................................... Retail trade................................. 82.1 Wholesale trade...................... 80.7 -30.1 +13.6 + 0.1 +13.2 + 1-0 + 03 + 08 + 0.5 - 0.2 39.4 - 27.6 +13.6 -26.0 September 1932 from August 1932 Allentown............. Altoona................. Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Williamsport........ Wilmington.......... Per cent change since Sept.* index BANKS' Payrolls September 1932 +23.0 +12.1 +39.7 +21.7 +24.2 +29.2 +18.4 +45.2 +28.7 +33.0 +10.2 * 1923-1925 average = 100. - 8.6 -10.4 + 2.4 + 9.0 + 0.5 - 3.1 + 2.6 1 p-Preliminary figures. Page Seven Index numbers of individual lines of trade and manufacture Philadelphia Federal Reserve District OUTPUT OF MANUFACTURES PHILADELPHIA FEDERAL RESERVE DISTRICT Index numbers—expressed in percentages of the 1923-1925 average "Adjusted” index numbers make which is taken as 100 allowance for the usual seasonal -----------------------------------------------------------------changes wnich result from an Not adjusted Adjusted for seasonal variations uneven distribution of business They are the most significant indexes because they show im provement or decline beyond the level usually to be expected. "Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. LOCOMOTIVES AND CARS Percentage comparison Sept. 1931 Aug. 1932 Sept. 1932 with Sept. 1932 Month ago Year ago 9 months Sept. 1932 1931 with 9 months 1931 Aug. 1932 Sept. 1932 69.1 67.2 51.4 85.3 74.5 72.0 41.2 40.9r 50.2 40.9 45.5 35.7r 51.Ip 52. Op 40.4p 69.2p 58.8 41.5p 74.1 69.0 73.1 109.7 88.8 66.4 52.6 50.3 57.1 63.0 62.5 46.7 56.4p 56. Ip 55.3p 84.7p 63.6 46 .4p Retail trade All stores....................................... Department............................. Men’s apparel ....................... Women’s apparel ................. Credit........................................ Stocks of goods 77.2 75.0 60.1 99.0 80.1 78.3 52.3 53.4r 59.7 60.8 55.5 39.7r 57.2p 58. Ip 47.2p 80.3p 63.2 45. Ip 9.4 -25.9 -22.9 + 8.8 -20.9 +32.1 + 13 .9 + 13.6 -22.5 -21.5 -21.8 -27.8 -29.2 -24.5 -35.0 70.7 66.4 67.1 55.2 54.1 55.0 71.2 64.4 48.6 53.9p - 2.4 53.9p - 0.4 50.9p - 7.5 78.7p +10.5 60.6 - 5.9 45.5p - 6.4 -23.8 101.6 84.6 65.1 + -18.9 -21.1 -42.4 -18.8 -24.1 -22.5 -28.4 -30.1 Rate of stock turnover - 8.5 WOOLENS AND WORSTEDS 2.57 2.81 Wholesale trade Total of all lines.......................... Boots and shoes...................... Dry goods................................. Electrical supplies.................. Jewelry...................................... Paper......................................... Stocks of goods Total of all lines.......................... Electrical supplies................. Hardware................................. Jewelry...................................... Paper......................................... 69.0 45.2 99.4 40.7 51.1 91.3 62.2 47.5 67.6 55.5 35.0 80.4 31.1 38.5 80.0 37.0 19.8 55.8 55. Op - 0.9 39.5 + 12.9 80.8 + 0.5 35.6p + 14.5 38.3 - 0.5 76.5 - 4.4 34.2p - 7.6 26.0 +31 .3 52.3 - 6.3 75.8 111 .5 48.6 86.7 87.8 79.7 58.6 79.3 64.9 103.0 36.4 74.7 82.4 61 .9 48.5 67.7 64.3p - 0.9 103.8 + 0.8 35.5 - 2.5 75.8 + 1.5 77.0 - 6.6 67.9p + 9.7 50.5 + 4.1 67.6 - 0.1 -20.3 -19.8 -12.6 -18.7 -12.5 -15.9 -25.0 -16.2 -45.0 -45.3 -22.6 Lumber and products................................ 105.0 119.4 72.8 41.2 21.1 11 .9 22.2 27.1 r 18.3r 33.5 21 9r 24.0 12.9 136.5 97.1 42.0 33.7 37.6 89.7 112.0 35.9 18.8 12.5 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.......................................... 84.5 40.2 35.3 84.9 60.2 104.4 111 .8 125.9 67.0 76.1 142.7 74.1 97.1 136.2 26.1 81 .4 46.2 77.4 111 .5 79.3 48.0 47.5 121.1 44.8 22.4 44.5 * Computed from unadjusted indexes. -13 .8 -14.8 Page Eight 8.9 -25.2 -60.3 -59.5 23.1 + 4.1 -48.1 -50.7 25.5 - 5.9 -38.0 -42.5 19.7 + 7.7 -59.0 -58.3 40.7 +21.5 -46.2 -43.4 19.5 -11.0 -51.0 -37.4 22.0 - 8.3 -61.9 - 9.6 12.6 - 2.3 -37.3 -30.8 156.5 +14.7 +19.8 - 1 .0 121 .6 +25.2 + 7.4 -16.6 57.8p +37.6 - 1.5 -28.5 41 .6 +23 .4 - 6.7 -28.5 41,6p + 10.6 -26.4 -23.7 120.8 +34.7 + 15.0 - 3.3 134.1 + 19.7 + 12.3 - 9.3 42.3 +17.8 -41 .9 -40.3 19.7 + 4.8 -52.2 -49.7 12.0 - 4.0 -43.1 -27.4 0.0 * -19.1* -16.9* 102.5 + 5.6 +21.3 + 17.0 82.8 -39.2 + 106.0 + 10.9 25.7p - 1.5 -27.2 -28.9 73.3 -10.0 -13.7 -18.3 47.9 + 3.7 -20.4 -22.2 77.5 + 0.1 -25.8 -19.3 129.6 +16.2 + 15.9 -10.3 72.4p - 8.7 -42.5 -27.2 58.9p +22.7 — 12.1 -29.8 54.1 + 13 .9 -28.9 -18.0 115.4p - 4.7 -19.1 - 5.8 49.6 +10.7 -33.1 -38.0 p-Preliminary. r-Revised. 78.3 65.1 102.4 54.1 61.3 101.3 65.3 58.9 69.0 52,5 39.6 74.8 28.9 31.6 78.4 32.9 17.4 53.0 62.5p 56.9 83.2 47.4p 46.0 84.9 35.9p 32.2 53.3 4 MENT 78.4 65.4 66.3p 114.8 106.1 106.9 53.5 38.9 39.0 92.8 79.9 81.1 87.8 76.6 77.0 61.3 66.5p 78.1 63.9 53.8 55.0 69.0 80.9 69.1 -15.2 - 8.1 Iron castings..................................... 41.1 Steel castings................................... 48.0 Electrical apparatus....................... 75.7 Motor vehicles................................. 39.8 Automobile parts and bodies.... 57.8 Locomotives and cars.................... 20.1 Shipbuilding............................................................ 130.6 Silk manufactures........................... 113.2 Woolen and worsteds................................. 58.7 Cotton products................................................ 44.6 Carpets and rugs.............................................. 56.5 Underwear................................................................. Cement.......................................................................... -33.4 -23.2 - 6.9 -27.0 -12.6 -12.3 -14.8 Rate of stock turnover Output of manufactures -14.9 -26.6 -38.7 -11.1 -36.7 3.17 3.45 21.1 42.3 41 .5 43.7 83.3 34.2 54.9 19.3 124.1 113.2 64.6 42.3 54.8 105.0 119.4 85.2 41 .6 22.2 •95.8 84.5 34.6 46.0 99.3 60.2 103.4 127.5 130.9 67.0 72.3 144.4 71.1 10.5 22.6 26.3r 17.6r 37.2 18.4r 22.6 13.0 135.1 94.2 43.0 30.5 36.1 78.0 104.2 44.9 19.5 13.6 77.5 81.8 117.1 35.8 84.7 46.2 75.1 119.3 76.1 48.0 48.4 121 .6 43.9 8.4 21.9 25.8 17.9 44.8 16.8 20.9 12.1 148.7 121.6 63.5p 39.4 40.4p 120.8 134.1 49.5 19.9 12.6 77.5 102.5 71.2 32.7p 85.8 47.9 76.7 147.7 75.3p 58.9p 51.4 116.4p 47.6 PAPER AND WOOD PULP LEATHER-GOAT AND KID r PETROLEUM REFINING IOARS 1929 1930 1931 1932
@FedFRASER