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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT NOVEMBER i, 15,34 ■% By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent W" FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Volume of industrial production re mained unchanged in September when there is usually a seasonal increase, and factory employment and payrolls declined. An important factor in the decrease was the strike in the textile industry. Retail trade in rural dis tricts showed a large increase, and sales at department stores in cities also increased, though somewhat less than seasonally. Deposits at banks and com mercial loans continued to increase. Production and employment. V O 1 ume of industrial production, as meas ured by the Board’s seasonally ad justed index, declined from 73 per cent of the 1923-1925 average in August to 71 per cent in September. There were substantial declines in activity at cotton and woolen mills, reflecting the influence of the textile strike, and in the output of shoes, automobiles, and lumber. After the termination of the strike, textile production increased. Steel mill operations, which had de clined sharply during the summer, have been at a higher level in recent weeks than in the early part of September. Production of beef and lamb increased further in September, reflecting in part the disposal of animals bought in the drought areas by the Federal Govern ment. Wheat flour production and sugar meltings also were larger in INDUSTRIAL PRODUCTION September. Output of anthracite and bituminous coal showed a larger than seasonal increase. Factory employment and payrolls de clined considerably in September, largely as a result of the textile strike. The number of workers employed was substantially reduced in the automobile, iron and steel, and shoe industries, as well as in the basic textile industries. There was a larger than seasonal in crease in employment in clothing in dustries, while in the nonferrous metals, building materials, food prod ucts, and paper and printing industries employment was sustained. Among non-manufacturing lines, employment increased seasonally from August to September at coal mines and in retail trade. There was also a substantial in crease in number of persons provided with work by the emergency work pro gram of the Federal Relief Adminis tration, while employment on public works decreased somewhat. The value of construction contracts awarded, as reported by the F. W. Dodge Corporation, continued in about the same volume during September as in other recent months. Department of Agriculture crop re ports for October 1 indicated a cot ton crop of 9,443,000 bales as com pared with a yield of 13,047,000 bales FACTORY EMPLOYMENT AND PAYROLLS last year. The corn crop, which aver aged 2,516,000,000 bushels from 1927 to 1931, is estimated at 1,417,000,000 bushels this year. Hay and pasture conditions improved in September and weather in the first half of October was generally favorable for forage crops. The yield of white potatoes is estimated at 362,000,000 bushels, about equal to the average for 1927-1931. Distribution. Daily average railroad freight-car loadings increased from August to September by about the usual seasonal amount, but declined slightly in the first half of October. Sales at department stores increased from August to September by some what less than the estimated seasonal amount, while retail sales of general merchandise in rural districts, as MEMBER BANK CREDIT Wednesday figures for reporting member banks in 90 leading cities. Latest figures are for October 17. WHOLESALE PRICES r4rm Products Index number of industrial production, ad justed for seasonal variation. Indexes of United States Bureau of Labor Statistics; without adjustment for seasonal variation. Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. Page One V, shown by reports of mail order houses and chain stores to the Department of Commerce, increased considerably. Commodity prices. Wholesale prices of farm products and foods, which had advanced sharply in August and the first week of September, subsequently declined somewhat. The weekly in dex of wholesale prices of the Bureau of Labor Statistics, which had ad vanced from 74 per cent of the 1926 average at the beginning of June to 78 per cent early in September, stood at 76 per cent in the second week of October. Recent declines occurred principally in those products which had increased most rapidly in preceding weeks, such as wheat, cotton, live stock, and meats. Prices of commodi ties other than farm products and foods have in general shown little change since last January, but within recent weeks prices of textile products and scrap steel declined slightly and gasoline prices showed a considerable decrease. The open-market price of silver advanced sharply in the first half of October. Bank credit. Excess reserves of member banks have shown no material change during the past month and on October 17 amounted to about $1,750, 000,000. A reduction in Treasury cash and deposits with the Federal Reserve banks somewhat more than offset a seasonal growth of $57,000,000 in the volume of money in circulation and a continued growth in required reserves arising from a growth in deposits. Volume of reserve bank credit out standing showed little change. At reporting member banks in lead ing cities there was a further growth in deposits and in loans and invest ments. Between September 19 and October 17 total deposits of the banks increased by about $500,000,000. Com mercial loans to customers and mem ber banks’ holdings of United States Government securities increased fur ther, while security loans declined. Short-term money rates continued at low levels during September and the first three weeks of October. Yields on government securities declined in October, following an increase in Au gust and September. Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial conditions in this district during September were less satisfacr tory than usual but since then they have shown some improvement, as indi cated by increased employment, payrolls and working time. September output of factory products declined sharply instead of showing the customary fall increase, while production of anthracite fuel and crude oil registered exceptional gains; the total volume of industrial production again was smaller than a year ago but in the first nine months this year it was still about 6 per cent larger than in the same period last year. Activity in build ing trades has changed little and, while the value of building contracts awarded has risen appreciably over last year, the total amount continues substantially below the average for the years before the depression. Retail trade sales increased by a larger amount than is usual for Sep tember and early reports for October indicate continued seasonal gains, while sales at wholesale failed to in crease as much as they ordinarily do at this season. Dollar sales in both branches have been larger in the first nine months this year than last, re flecting partly the influence of price changes as in former months. Deliv eries of goods by railroad and motor freight show seasonal activity and the total volume of shipments has been greater thus far this year than last. Commercial activity, measured by busi ness travelers, has increased noticeably since early September and when com pared with the past year. The number of workers on the rolls of the leading branches of industry and trade remained virtually the same in September as in August, marked decreases in manufacturing being off set by increases in other important occupations. This bank’s general in dex number of employment was 107 per cent of the 1932 average, showing a drop of 2 per cent from a year ago; the payroll index was 113 or 3 per cent lower than in August and slightly below that of a year earlier, accord ing to reports from about 11,500 estab lishments in Pennsylvania, which in September employed over 775,000 workers earning approximately $15, 400,000 a week. Manufacturing. The demand for products manufactured in this district generally has shown a slight improve ment, after a comparatively dull market in the summer months. The volume of sales, while increasing somewhat since August, continues smaller than a year ago. While there are numerous in stances showing increases in the amount of unfilled orders, the volume of forward business held by manufacturing plants INDUSTRIAL AND TRADE ACTIVITY PRIMARY DISTRIBUTION PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT 1923 -25AVG. = IO0 /A .*••• s A * \ IOO RETAIL TRADE' SALES l WHOLESALE DOLLAR SALES 80 OUTPUT OF I FACTORIES AND MINES Vj / aL, 60 a"// SHIPMENTS OF MERCHANDISE VALUE OF BUILDING CONTRACTS 40 20 1930 1931 1932 1934 Source: F. W. Dodge Corp. for building contracts. Page Two 1935 .// AND MISCELLANE0U S C0MM0DIT ES 1 ** • ADJUSTED TOR SCASONAL VARIATION 1929 1930 (931 1932 1933 Source: American Railway Asso. for car loadings. 1934 in the aggregate has declined, reflecting in a measure a further hesitation on the part of buyers to make future commit ments. The trend of prices for manufac tured products on the whole has been somewhat more even since August than in the previous months, although lately there have occurred slight re cessions in many commodities, particu larly textile products. The supply of finished goods at fac tories generally has been reduced fur ther since early September, and it ap pears that the present volume is smaller than a year ago. While a number of lines have increased their stocks of raw materials, the total seems to be smaller than in the previous month and as compared with last year. Since late August, prices of raw materials in the main have fluctuated downward, though the present level continues to be substantially above that of last year. Sharp decreases instead of the-usual increases occurred in the number of shop workers as well as the amount of wages disbursed in September, re flecting partly the effect of the strike in the textile and certain allied indus tries. Decreases in employment, wage payments, and working time in the in dustries manufacturing such heavy products as those of iron and steel plants and transportation equipment were larger than usual from August to September. A number of plants pro ducing building materials also reduced their working forces and payrolls. The accompanying chart shows rela tive fluctuations in employment of plants making building materials in this section and in the country as a whole. It appears that the level of employment in Pennsylvania since 1931 has been somewhat higher than that for the entire country. The Pennsylvania manufacturing in dustry in September employed approxi mately 767,000 factory workers or 3 per cent fewer than a year ago, and its payroll averaged about $14,000,000 a week, which was a drop of over one per cent from last year. It is estimated that for the year to date, the volume of fac tory employment has been about IS per cent greater and the amount of wage disbursements was 37 per cent larger than in the first nine months of last year. Returns that are now being made by representative manufacturers indi cate that there has been a noticeable increase in working forces, payrolls and operating time in October, follow ing rather unsatisfactory conditions which prevailed during September. Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 (All figures are rounded from original data) Adjusted indexes allow for the usual seasonal change which results from an uneven distribution of business between the months of the year. Unadjusted indexes reflect merely the actual change which may or may not be up to the usual seasonal expecta Sept. July Aug. Sept. tions. 1933 1934 1934 1934 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...................... Electric power output................ Industrial use of electricity.. . . Coal mining....................................... Anthracite..................................... Bituminous.................................... Employment and wages—Pa. 69 69 48 85 53 86 39 74 81 26 102 125 81 195 142 71 74 44 65 65 65 66 52 50 76 78 54 55 64 69 49 46 79 76 78 90 27 26 103 97 126 117 78 78 196 198 132 125 63 51 63 50 65 58 Percentage com parison Sept. July Aug. Sept. 1934 1933 1934 1934 1934 with 9 mos. Month Year 1933 ago ago 61p 61p 71p 52p 57p 44 72p 89 27 96p 106p 77 190 135 61 62 56 Factory wage earners...................... Factory payrolls............................... Employe-hours (1927-28=100). . General—12 occupations: Employment (1932= 100)......... Payrolls (1932=100).................. Building and real estate Contracts awarded!—total........... 24 25 25 Contracts awarded!—residential. 14 11 10 Permits for building—17 cities. .. . 6 7 8 Mortgages recorded—Philadelphia. 5 5 6 Real estate deeds—Philadelphia. 42 45 32 Sheriff deeds (1930= 100).... Other deeds (1930= 100)......... Writs for Sheriff sales—Phila__ 906 786 1019 805 Distribution Retail trade—sales........................ Retail trade—stocks..................... Wholesale trade—sales................. Wholesale trade—stocks.............. Life insurance sales....................... New passenger auto, registrations . Freight car loadings—total............. Mdse, and misc. (64.9% of total) Coal (23.5% of total)............. Not adjusted Adjusted for seasonal variation 69 63 64 62 102 83 58 57 62 62 62 64 62 79 78 66 67 106 107 89 81 57 52 56 53 61 55 Business liquidations 69p 64 p 72p 68 106 69 52 52 56 Number.......................................... Amount of liabilities................... Sept. 1934 with — 5 - 7 — 5 -11 -11 — 0 — 16 - 2 -34 +13 — 2 +10 + 6 + 4 +31 — 5 +40 -17 +43 + 3 + 8 + 12 + 8 + 2 - 1 + 6 70 71 65 66 63p 63p 52 58 59 65 48 45 75 75 84 96 29 30 102 98 114 119 75 76 182 188 135 128 53 50 52 50 57 55 53p 57p 42 77p 103 30 96p 116p 77 186 143 61 62 57 62 63 +22 +23 + 14 53 88 37 77 93 28 101 137 81 191 150 72 75 45 — 3* — 3* — 7* _ i* — 10* — 11* +15* +37* + 16* 76 54 59 76 55 56 76 57 58 74 53 52 + 0* — 2* — 3* — 1* + 12* 109 107 +29* 114 116 107 116 107 113 24 9 7 5 30 15 69 514 - 6 -17 — 4 - 5 - 1 + 4 - 1 -10 - 0 - 4 + 8 +21 +24 — 4 - 6 — 15 - 5 - 2 — 5 -13 -16 +27 - 0 -13 +10 + 7 -28 — 87* +30* -21 +29 -39 +73 -38 + 4 — 22* + 7* -11 +55 19 26 25 11 15 14 - 0 7 +16 4 6 -28 8 5 4 — 19 29 41 41 — 27* 20 102 115 — 11* 64 61 53 -25 1051 978 933 +n + 3 — 8 + 2 — 1 -15 - 0 - 2 + 2 + 0 + 1 + 12 + 11 + 3 -16 -11 — 9 - 9 +10 +30* + 1* 62 45 66 58 73 73 64 65 82 102 79 101 65 58 63 57 54 64 49 59 74 67 90 89 54 54 53 62p 07p 82p 71 85 66 57 58 58 — 4* — 54* +94* — 46* 62 42 67 61 46 81 60 82 + 10 + 6 +14 + 0 + 5 + 17 Payment of accounts Check payments.......................... Rate of collections (actual) Retail trade............................... Wholesale trade....................... l71 63 66 + 4 + 7 58 69 54 62 28 68 28 72 28 69 + 1 - 3 + 6 + 12 23 61 28 70 25 72 24 69 + 2* + 5* + 3* 0* + 3* + 2* + 2* +10* +29* +17* + 3* + 9* +11* + 6* +16* 71 75 76 +27* 57 64 70 + 16* 65 71 74 +13* 76 78 78 + 13* 107 110 113 +18* 110 117 120 +11* 114 114 118 78 73 76 78 117 123 120 Prices—United States Wholesale (1926=100)........... Farm products.......................... Foods.......................................... Other commodities................. Retail food (1913= 100)......... Philadelphia.............................. Scranton..................................... Per cent change from (000,000’s omitted in dollar figures) Sept. 1933 1934 July 1934 Aug. 1934 Sept. 1934 $ $ $ 8 Month ago Year ago 0 0 -4 —1 -83 + 8 +51 + 4 0 +0 +0 —4 - 9 +15 +13 — 8 Banking and credit Federal Reserve Bank Bills discounted.............................. Other bills and securities............. Member bank reserves................. Ratio.................................................. Reporting member banks Loans to customers....................... Other loans and investments.... Net deposits.................................... Bankers’ acceptances outstanding. $ 29 155 126 63.4% $498 533 937 14.3 8 168 206 68.0% $ 460 574 1041 14.5 6 168 218 68.3% * 454 593 1067 13.9 * Computed from data unadjusted for seasonal variation. ! 3-month moving daily average. 5 168 198 66.4% $ 454 608 1052 13.7 5 168 190 65.9% $ 454 611 1055 13.2 p-Preliminary. Page Three OUTPUT OF MANUFACTURES BY CLASSES textile products PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT CONSUMERS’ GOODS WAGE PAYMENTS PRODUCTION (ADJUSTED TOR SEASONAL VARIATION) DURABLE GOODS WHOLESALE PRICES (united statcs) 1929 1930 1932 1933 1934 1929 ~~ 1930 1931 1932 1934 Source: Bureau of Labor Statistics for prices. Production of factories in this dis trict during' September decreased sharply instead of increasing as is us ual at this time, thus continuing the downward trend since spring with one exception. Our index of output, which is adjusted for seasonal change and the number of working days, fell from 66 in August to 61 per cent of the 1923-25 average in September. A year ago this index was 69. The sharpest reductions in Septem ber this year occurred in the output of textile industries such as silk, woolen and worsted, cotton, drapery and upholstery, and some of the allied branches, which were affected by the strike. Exceptionally large recessions were reported by shoe factories and leather tanneries. Other groups also registered a lack of improvement, ex cept for the building materials group, which showed a slightly larger than usual volume of production. Prelimi nary reports for October indicate some upturn in productive activity. The volume of manufactures pro duced thus far this year appears to be still about 4 per cent larger than in the same period last year, although this difference has been growing less favorable since June. The durable goods industries, manufacturing such products as those used for industrial equipment, construction and trans portation, have shown the greatest rel ative gain this year over last, while industries producing goods, usually for quick consumption, have not done as well this year as last, even though their level of activity continued higher than that of the durable goods industry. Output of electric power in Septem ber was smaller than usual. Sales to industries, which are the largest con sumers of electrical energy, increased more sharply than was expected, but Pagc Four purchases by other sources apparently did not increase in the same propor tion as they usually do from August to September. Both output and sales of electricity thus far this year have con tinued larger than last year. Coal and other fuels. Production and shipments of anthracite fuel increased much more than seasonally in Septem(Output and shipment figures are daily averages) Anthracite Production.............tons Shipments............. tons Stockst.........1000 tons Prices___ (1926-100) Employment..........No. Bituminous Production.............tons Shipments.... no. cars Prices. . . .(1926 = 100) Employment..........No. Coke Prod.. .(1923-25=100) Prices. . . .(1926-100) Gas and fuel oil Prod...(1923-25= 100) Prioest. . .(1926 = 100) Per cent change from Sept. 1934 Month Year ago ago 165,700 158,182 2,425 81.3 112,712 +25 +27 +13 + 2 +15 -17 -16 +91 - 1 + 0 276,200* 22,790 96.3 143,091 + 6 + 17 + 0 + 1 +24 - 2 + 14 + 7 71.4* 85.6 + 5 0 -14 + 7 101.7* + 2 59.0 - 4 + 3 + 8 Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. t August. her, following a decline for several months. Output and deliveries of bitu minous coal also turned upward but at a lower rate than is estimated for this season. Activity at the coke plants shows greater than usual improvement but the volume of output continues smaller than last year. The available supply of these fuels in this section as in the country has increased recently, and in the case of anthracite it is con siderably larger than a year ago. There has been little change in the prices of solid fuels during the month except for some seasonal advance in the case of anthracite; compared with a year ago wholesale prices of bituminous coal and coke are higher, while those for an thracite are a trifle lower, according to indexes of the Bureau of Labor Statistics. Output of gas and fuel oil, which are products of petroleum refineries, has increased further, as it usually does at this season, and is somewhat higher than a year ago. Prices of fuel oil have been reduced lately, but they continue above the level of last year. Sales of manufactured and natural gas to domestic and industrial consumers in this section appear to show some im provement, following slackened de mand during the summer months. The accompanying table gives further comparisons. Building and real estate. The value of all building contracts awarded in this district totaled $6,454,000 in September, or practically the same as in August, as shown by the table below, but was 43 per cent higher than a year ago. In the period of 11 years, 1920-30, monthly awards averaged $27,782,000 and the September average was $28, 115,000 or 4 times as large as the figure this year. In September, larger awards for edu cational and commercial buildings, resi- Building contracts Philadelphia Federal Reserve District Residential: Apts, and hotels......... Non-residential: Commercial................. Factories...................... Per cent change Sept. 1934 (000’s 1934 From omitted) month from 9 mos. ago 1933 $ 126 1,014 +359 + 15 +102 — 13 824 179 1,534 408 + 7 - 74 +110 - 44 + 35 + 2 +363 - 31 Total buildings.. . . Public works and utili ties ................................. $4,085 + o + 12 2,369 - 8 +267 Grand total........... $6,454 + 0 + 63 Source: F. W. Dodge Corporation BUILDING MATERIALS INDUSTRIAL FUEL AND POWER TREND OF EMPLOYMENT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT ELECTRIC POWER USED BY INDUSTRIES PENNSYLVANIA (r major products) FUEL ony OUTPUT UNITED STATES (e major products) BITUMINOUS COAL I OUTPUT 1929 1930 1931 1932 1933 1934 1930 1935 1932 1933 1934 Source: Bureau of Mines for coal and fuel oil. dences, and apartments and hotels were largely offset by sharp declines in the value of contracts let for public works and utilities, factories and certain un classified structures. The real estate situation in general has continued unusually quiet. Ordi nary conveyances, however, have in creased in some sections, particularly in the city areas of Philadelphia, Johnstown, Harrisburg and Lancaster. There has been a marked decline in the number of forced sales as com pared with a year ago. Agriculture. The agricultural situa tion in general has shown some im provement lately. Farm operations are progressing at the usual rate for this season, and estimated yields of leading field crops, save for tobacco, have been revised upward. According to Department of Agri culture estimates as of October 1, yields of corn and white potatoes will be larger this year than last and above the 1926-30 average. The wheat, hay and tobacco crops are expected to be among the smallest in several years. Es timates of the fruit crop also indicate that this year’s harvest will be un usually small. Wholesale prices of farm products in Pennsylvania have increased fur ther. In the country as a whole, prices for all farm commodities rose about 5 per cent in September, but declined in October. Distribution, trade and service. Ship ment of commodities by railroad freight in this section barely main tained its usual level in September, but there has been some increase in Octo ber reflecting partly a continued rise in the movement of coal. Motor freight companies, which transport chiefly finished merchandise over rela tively short distances, report a sea sonal increase in activity since early September. The volume of freight originating in the Philadelphia terri tory in September showed a substan tially larger increase than usual, after a steady decline in the four previous months; but compared with a year ago, it was IS per cent smaller. The value of wholesale trade sales by eight lines was 11 per cent larger in September than in August, but this gain failed by about 8 per cent to mea sure up to the usual rate of increase estimated for this period. Preliminary reports for October indicate seasonal increases in the sales of most lines. The trend in the wholesale business this year on the whole has been some what more favorable than in several years past. Dollar sales in the first nine months of this year were 19 per cent larger than in the same period last year, reflecting in part the influ ence of higher prices. Current sales by such retail estab lishments as department, apparel, shoe and credit stores continued to show seasonal increases. Sales in Septem ber were 27 per cent larger than in August; when allowance is made for the seasonal change, this gain indicated an improvement of about 11 per cent. This bank’s September index of retail sales, which accounts for the usual seasonal variation and the number of trading days, was 69 per cent of the 1923-25 average, or about the same as it was a year ago. According to the Bureau of the Census, the value of sales of all retail establishments in this district in 1933 amounted to about $1,610,000,000, a decrease of 48 per cent as compared with 1929 when the first census of dis tribution was taken. The decline shown by this bank’s index number for the same period was 42 per cent. This similarity between the index and census figures would be even closer if it were not for the fact that the last census un avoidably fails to include the figures for some of the smaller retail stores in Pennsylvania, though the extent of this omission appears to be relatively small. This comparison, which it is possible to make for the first time, shows that the data from which our index of re tail trade sales is constructed are suffi ciently representative to measure ac curately the changes in the value of current retail trade, despite the fact that such large groups as food and automotive products are not covered by the index except insofar as they are represented by the sales of department stores. Retail trade Phila. F. R. District Sales in 1933 (000’s omitted) Per cent change from 1929 Pennsylvania, eastern.. . New Jersey, southern. . . Delaware........................... SI ,336,643* 215,304 57,910 -48.4 —45.9 -44.1 Total.............................. SI,609,857 Phila. F. R. Bank index. —47.9 -41.5 Source: U. S. Bureau of the Census. * Owing to field conditions beyond the control of the census takers, the figures for Pennsylvania ap pear to be understated probably by 2% per cent. The value of retail sales thus far this year has been about 10 per cent larger than last year but 36 per cent smaller than in the same period five years ago. These changes reflect in part the fluctuation of prices, since both the census and current reports are given in dollars, not quantity. The supply of merchandise at both retail and wholesale establishments in creased by more than the usual amount from August to September. The fact that the value of these sup plies was higher than a year ago is due in large measure to higher prices. The rate of stock turnover has been Page Five higher this year than last. The amount of payments by customers made during September in relation to their outstanding balances at the be ginning of that month increased slightly in the case of retail but de clined in wholesale trade as compared with the previous month. But this ratio in both instances continues higher than last year. Sales of new passenger automobiles, as measured by registrations, have continued sharply downward since mid-summer, when registrations reached the highest level in the past two years. The number of units sold thus far this year, however, has been about 14 per cent greater than in the same period last year. Activity of commercial travelers in this district has increased considerably since August. Reports from repre sentative commercial hotels show that room occupancy was 17 per cent greater in September than in August and exceeded that of last year by 18 per cent. Total revenue from all sources was 21 per cent larger than in August and 23 per cent greater than in September, 1933. Details follow: Per cent change Hotel business Philadelphia Federal Reserve District Sept. 1934 from Aug. 1934 Room occupancy................ Per cent of capacity used: Sept. 1934........... 46.6 Aug. 1934........... 40.0 Sept. 1933........... 39.4 Revenue from: Guest rooms.................... Food................................... Other sources.................. Total revenue............. 0 +17 Sept. 1933 — 0 +18 Oct. 17, 1934 Sept. 19, 1934 Oct. 18. 1933 declined from 1,070 to 1,057 millions. This was due chiefly to a drop from 220 to 205 millions in loans on securi ties. Holdings of open market com mercial paper and bankers’ acceptances increased slightly and there was a rise of 2 millions in loans on real estate, which include mortgages and other advances made on the security of real estate. The combined total of loans on real estate and other loans was 258 millions on October 3, at which point they were 10 millions above the low of mid-summer and 8 millions higher than a year earlier. Security holdings at the reporting banks have changed little in the last four weeks, a decrease of 4 millions in issues of the United States Government being accompanied by a rise in other investments. Net demand deposits increased 11 millions to the highest point since the fall of 1931, but declines of 2 and 8 millions were recorded in time and Government deposits, respectively. The daily average of reserves of member banks in this district declined from 198 millions in August to 190 millions in September and compared with 122 millions a year ago. The ex cess above legal requirements in Sep tember was 71 millions, AAl/2 millions being held by banks in Philadelphia. 1934 9 mos. 1933 + 15 + 17 + 12 +61 +13 +17 +66 +21 +23 +24 Reflecting the influence of Treasury expenditures, the reserves of member banks in this district have increased substantially in the past month. Loans to customers, other than those made on the security of stocks and bonds, reached the high est point this year at the reporting member banks on October 3. In the four weeks ending Octo ber 17 the reserve deposits of member banks increased from 191J4 to 207 millions, at which point they were only 18 millions below the record peak in July. This addition to reserves, de spite a decline of 3 millions in borrow ings from this bank and an adverse balance of payments of 18y2 millions Page Six Reporting member (000,000’s omitted) +20 +25 + 17 Banking conditions. in commercial transactions chiefly with other sections of the country, was due principally to Treasury operations. Government disbursements in the dis trict were 36 millions larger than local receipts. The cash reserves of the reserve bank increased 8 millions, and the sub stantial rise in reserve deposits was partly offset by declines in liabili ties on other deposits and in Federal reserve note circulation, so that the re serve ratio advanced from 66.4 to 67.2 per cent. Loans and commitments approved by the bank to provide working capi tal for industrial and commercial busi ness totaled $2,240,500 on October 24, as against $1,418,500 on September 26. In part this total includes direct trans actions with the concerns that receive the funds, while in other instances the funds are advanced through financing institutions, which may participate in the transactions. Actual advances in creased from $135,800 to $261,100. During the four weeks ending on October 17 the loans and investments of the weekly reporting member banks Loans on securities: To brokers and dealers in N. Y. City. To brokers and dealers elsewhere........ To others................... Total loans on securities.......................... Acceptances and commercial paper.... Loans on real estate. . Other loans................... Total loans................ U. S. Government securities................... Obligations fully guarantecd by U. S. Gov’t...................... Other securities............ Total loans and investments. . . Net demand deposits.. Time deposits............... Government deposits.. Due from banks........... Due to banks................ Reserve with Fed. Res. Bank....................... S 16 * 15 174 $ 205 $ 19 71 185 $ 480 291 161 270/ 18 $ 16 186 220 $ 18 60\ 185/ $ 492 295 283 4 14 225 243 10 251 $ 504 282 246 $1,057 694 314 53 139 242 $1,070 683 316 61 121 225 $1,032 559 311 80 94 161 129 121 83 Federal Reserve Philadelphia (In millions of dollars) Changes in— Oct. 17, 1934 Bills discounted. . . $ 2.3 Bills bought............ 0.6 Industrial advances * (Sec. 13b)............ 0.2 U. S. securities. . . . 167.1 Other securities . . . 0.3 Total bills and securities......... $170.5 Fed. res. note cir culation ................ 240.9 Fed. res. bank note circulation—net. 0.0 Member bank re serve deposits. . . 207.2 U. S. Treasurer— general account.. 1.2 Foreign bank de posits .................... 0.8 Other deposits........ 6.2 Cash reserves......... 306.7 Reserve ratio.......... 67.2% Four weeks One year -$ 3.0 + 0.1 -$23.2 - 0.1 + 0.1 0.0 0.1 + 0.2 + 3.8 - 0.2 -$ 2.9 -$19.5 - - 2.7 + 3.5 0.0 - 9.2 + 15.6 + 71.3 - 6.8 - + + + 0.4 0.7 8.1 0.8% - 0.6 - 5.2 + 64.5 + 4.7% 0.4 RESERVE BANK CREDIT AND THE FACTORS THAT AFFECT IT Philadelphia Federal Reserve District September 20 to October 17 inclusive—in millions of dollars Sources of funds Reserve bank credit extended in this dis trict.................................................................. — 1.5 Commercial and financial transfers (chiefly interdistrict).................................................. —18.7 Treasury operations........................................ -+-36.3 Uses of funds Currency demand............................................ Member bank reserve deposits..................... Nonmember deposits at reserve bank......... Unexpended capital funds of reserve bank — 0.2 +15.6 +0.7 — 0.0 Total +16.1 Total +16.1 Note: This table gives, in balance sheet form, a summary of the banking changes which have had an influence on the amount of reserve bank credit in use in the district. Employment and Payrolls in Pennsylvania REPORTING MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS (All figures are rounded from original data) NET DEMAND DEPOSITS — Manufacturing indexes V Employment* Employehours t Payrolls * • (indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and group indexes are weight Sept. change from Sept. change from ed proportionately.) 1934 1034 index index Sept. Aug. Sept. Aug. 1933 1934 1933 1934 TIME DEPOSITS — GOVERNMENT DEPOSITS All manufacturing....... 1933 1934 LOANS TO CUSTOMERS REPORTING MEMBER BANKS PHILA. FED. RES. DISTRICT MILLIONS 74 64 84 53 86 82 103 116 73 49 91 90 88 84 Iron, steel and prods. . . . Non-fer. metal prods. . . . Transportation equip. . . Textiles and clothing....... Textiles ......................... Clothing......................... Food products................... Stone, clay and glass .... Lumber products.............. Chemicals and products . Leather and products.... Paper and printing.......... Printing.......................... Cigars and tobacco.... Rubber tires, goods. . . Musical instruments .. SECURED BY STOCKS AND BONDS - 3 + 2 - 0 — 1 -14 -17 - 3 - 3 - 3 - 4 -11 — 5 — 7 + 2 +n + 7 — 4 — o — 14 + 2 + 2 + 1 — 6 - 2 _ 2 + 0 - 2 + 0 53 45 67 33 67 64 77 94 36 69 + 10 + 1 78 -22 - 4 45 + 12 + 8 * Figures from 2010 plants. — Sept, 1934 per cent change from Sept. Aug. 1933 1934 1 - 7 — 11 — 10 -10 — 11 — 11 75 73 - 6 + 1 + 2 - 7 — 21 - 8 - 8 - 8 + 6 - 7 + 2 + 1 - 7 + 3 + 4 52 57 39 +18 -30 + 6 + o -10 — 6 + 3 —35 + 0 +16 — 5 +. i 74 77 - 0 — 6 -15 -16 -11 +14 — 9 + 3 -23 -26 -12 +12 — 13 — 12 — 12 — 13 — 6 - 4 — 8 — 19 — 12 — 12 — 10 +11 — + + — + + 8 2 1 7 1 2 Figures from 1774 plants. Indexes of twelve occupations ALL OTHER 200 Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) - 1933 I 934 General index Percentage change—September 1934 from September 1933 City areas* Allentown............. Altoona................. Harrisburg............ Johnstown............ Lancaster............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... \ ork....................... Manufacturing Employ ment Wage payments + 2 -11 + 8 + 5 + 0 - 2 + 4 -11 - 6 -11 - 6 - 4 + 1 + 5 — 2 +13 +10 + 4 + 2 + 6 - 4 — 12 — 6 + o - 0 + 2 Building permits (value) + 293 - 60 + 277 - 17 + 38 +2117 + 17 + 101 + 92 — 54 — 2 + 63 Debits — + + - 5 1 1 3 +n + 2 Retail trade sales (weighted)___ 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................... + 6 . - 4 + 2 + 3 — 1 +26 — 6 + — + — — 2 5 3 2 4 + 10 — 6 - 0 + 1 +16 +12 +20 + 9 + 9 +28 +21 +39 +23 +22 Sept. 1934 index 107 115 91 122 85 122 169 90 105 104 109 96 100 Per cent change from Sept. 1933 Aug. 1934 — 2 — 3 + 0 + 7 — 12 + 2 +15 - 0 + 0 + 4 + o - 3 +15 + 1 + 1 _ 2 + 1 — 0 + 7 + 1 - 1 0 + 2 + 1 -12 Payrolls Sept. 1934 index 113 130 87 140 71 150 89 104 97 102 92 107 Per cent change from Sept. 1933 Aug. 1934 — 1 — 1 -23 + 14 — 7 +12 +34 + 9 + 3 + 6 +26 + 2 - 3 — 3 +18 — 3 + 4 — 11 — 9 — 1 + 6 + 1 + 1 + 9 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUFACTURING AND NON-MANUFACTURING INDUSTRIES AND SERVICES PERCENT September 1934 from August 1934 Allentown. ............ Altoona.................. Harrisburg............ Johnstown............ Lancaster............. Philadelphia......... Reading................ Scranton............... Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... York...................... - 3 —15 — 1 - 1 + 2 — 2 - 2 + 8 — 2 — 4 — 2 - 0 — 2 -11 — 27 — 9 — 5 - 1 - 3 — 2 + 4 - 8 -16 - 3 — 1 - 50 + 132 — 0 + 30 + 17 - 26 +1074 — 5 + 132 + 362 — 86 — 24 + 1 - 6 + 1 - 0 - 3 - 6 + 1 — 4 — 6 +19 - 6 * Area not restricted to the corporate limits of cities given here. EMPLOYMENT PAYROLLS + 16 1932 1933 1934 Page Seven Index numbers of individual lines of trade and manufacture OUTPUT OF MANUFACTURES Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 (All figures are rounded from original data) Adjusted indexes allow for the usual Not adjusted Adjusted for seasonal variation uneven distribution of business be tween the months of the year. Unadjusted indexes reflect merely the actual change which may or may not be up to the usual seasonal expecta Sept. July Aug. Sept. tions. 1933 1934 1934 1934 Percentage com parison Sept. July Aug. Sept. 1934 1933 1934 1934 1934 with 9 mos. Month Year 1933 ago ago Sept. 1934 with Retail trade Sales Total of all stores........................... 69 Department................................. 66 Men’s apparel............................ 54 Women’s apparel........................ 100 Shoe............................................... 81 Credit............................................ 62 62 59 59 75 58 66 62 69p 63 66p 55 58 92 103 52 82p 51 58 64 62 +n + 6 + 12 +59 +15 + 0 + 10 + 1 + 9 + 7 + 4 + 16 + 9 + 2 + 8 - 6 + 19 62 59 46 86 75 59 45 43 45 50 53 43 49 48 45 62 42 48 58 50 57 70 54 69 59 50 57 61 83 100 60 60p 70 80* Stocks of goods 63 59 50 101 56 71 70 91 58 69 94 61 71 64p 54p 93 78* + 3 + 1 + 3 — 1 — 7 +10 + 1 — 8 +13 — 8 + 2 61 109 59 72 +n 62p 59p 50 89 77p 55 Rate of stock turnover + 1* 2.64 2.68 Wholesale trade Sales Total of all lines.............................. Boots and shoes.......................... Drugs............................................. Dry goods..................................... Electrical supplies...................... Groceries....................................... Hardware..................................... .Jewelry.......................................... Paper............................................. 64 79 78 72p 38 36 49 39p 80 91 84 89 36 41 42 37 51 107 86 59 92 108 112 109 45 43 41 41 40 32 35 32 59 63 62 61 - 8 -21 + 6 — 12 -32 - 2 - 3 - 9 - 1 73 55 83 + 17 47 + 28 61 + 21 103 + 21 43 + 27 50 + 16 61 + 12 + 19 + 3 + 0 +10 + 13 + 4 +15 +18 + 5 -21 + 3 73 74 82p 30 56 57p 85 78 91 39 49 31 87 71 70 109 109 121 40 40 46 22 31 39 59 58 62 Stocks of goods 62 66 67 68 22 22 24 21 109 102 108 116 40 47 45 49 78 75 78 76 81 85 82 63 62 65 65 45 46 48 53 63 58 57 + 2 +11 + 7 + 8 — 4 — 1 + 12 — 1 + 11 +14 + 6 +23 +30 + 8 + 3 +19 — 11 64 22 112 44 76 61 49 64 67 71 22 24 25 101 112 120 48 48 54 78 80 84 75 79 82 62 64 63 53 53 58 58 58 57 Rate of stock turnover + 8* 3.92 4.22 Output of manufactures Pig iron.................................................. 27 24 24 22 Steel........................................................ 51 49 48 43 Iron castings......................................... 44 46 50 51p Steel castings....................................... 34 70 67 62 Electrical apparatus.......................... 63 69 73 73 Motor vehicles..................................... 13 14 23 19 Automobile parts and bodies.......... 47 42 37 36 Locomotives and cars........................ 14 27 28 25 Shipbuilding......................................... 105 134 116 118 Silk manufactures............................... 98 86 94 65 Woolen and worsteds........................ 59 41 35 24 Cotton products.................................. 47 34 38 30 Carpets and rugs................................. 64 45 57 38 Hosiery.................................................. 111 84 89 102 Underwear............................................ 147 128 107 95 Cement.................................................. 26 41 40 45 Brick....................................................... 37 32 29 26 Lumber and products........................ 20 17 16 16 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................................ 104 90 104 64 89 91 38 68 55 80 77 89 65 59 58 85 81 82 137 132 132 114 120 103 73 77 81 69 68 64 138 143 132 87 72 69 -10 — 11 + 3 - 7 + 0 -19 - 2 -13 +1 -32 -31 —20 -34 +15 -11 +13 -11 -18 -16 + 16 +84 +16 +39 -22 +77 +13 -34 -59 -36 -40 — 8 -35 +72 -29 + 5 -14 + 2* + 1* 98 - 6 - 6 46 -50 -29 49p -11 +29 88 — 0 +n 59 - 9 + i 81 - 0 - 4 123 — 7 -10 89p -13 -22 67 -17 - 9 64 0 - 7 133p +1 - 3 74p + 7 -14 * Computed from data unadjusted for seasonal variation. Page Eight + 49 + 36 + 49 + 120 + 44 + 16 + 36 +103 + 35 - 12 - 33 - 6 . + 5 - 5 - 33 + 22 - 0 + 12 + 2* - 6 + 4 + 52 + 8 + 3 - 1 - 0 + 5 + 44 + 5 + 2 + 23 25 49 45 38 69 11 45 13 99 98 65 45 69 111 147 30 37 21 88 103 oo 51 92 65 84 156 118 73 65 139 83 p—Preliminary. 22 44 44 76 73 14 41 27 130 84 39 30 42 69 106 48 31 17 92 80 91 oo 83 57 79 123 105 75 63 144 71 21 49 48 79 81 19 35 29 115 92 36 34 53 78 100 50 30 18 87 89 79 59 95 58 79 141 99 81 65 132 68 20 41 52p 69 80 16 35 24 112 65 27 29 40 102 95 52 26 18 89 100 39 6op 103 59 80 140 93p 67 61 135p 71p AA-
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