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THE BUSIN ESS REVIEW THIRD FEDERAL PHILADELPHIA JJUl rgf RESERVE DISTRICT NOVEMBER i, i935 By RICHARD L. AUSTIN, C lairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Industrial production and employ ment increased in September and dis tribution of commodities to consumers was in larger volume, reflecting in part seasonal influences. The general level of wholesale prices showed little change. Production and employment. Out put at factories and mines, as meas ured by the Board’s seasonally ad justed index of industrial production, advanced from 87 per cent of the 1923-1925 average in August to 88 per cent in September, reflecting chiefly increases in the output of iron and steel, lumber, cotton and silk tex tiles, and anthracite, offset in part in the total by declines in the production of automobiles and woolen textiles. At steel mills activity increased from 49 per cent of capacity in August to 51 per cent in September, and during the first three weeks of October con tinued at about the September level. At automobile factories a sharp decline in output during September, as prepa rations were made for new models, was followed in the early part of Oc tober by a rapid advance. Lumber production continued to increase in September. In the cotton textile in dustry, where output had been at a relatively low level since April, ac tivity showed a marked increase in September and there was also an in crease in output at silk mills, while at woolen mills, where activity has been at an exceptionally high level for sev eral months, there was a decline. Factory employment showed a sea sonal increase between the middle of August and the middle of September. The number employed at foundries and in the lumber, nonferrous metals, and machinery industries increased substantially, while in the automobile industry there was a considerable de cline. At cotton mills employment showed a seasonal increase and at silk and rayon mills there was an increase of more than the usual seasonal amount, while employment at woolen mills and shoe factories declined. The value of construction contracts awarded, as reported by the F. W. Dodge Corporation, was about the same in the six weeks ending October 15 as in the previous six weeks, re flecting an increase in residential building, partly of a seasonal character, and a slight decline in other types of construction. Distribution. Freight-car loadings showed an increase of more than the usual seasonal amount in September and increased further in the first half of October. Department store sales Indexes of the United States Bureau of Labor Statistics. (1926 = 100.) By months 1929 to 1931; by weeks 1932 to date. INDUSTRIAL PRODUCTION FACTORY EMPLOYMENT DEPARTMENT STORE SALES also increased by more than the esti mated seasonal amount in September, and for the third quarter the average of the Board’s seasonally adjusted in dex was 80 per cent of the 1923-1925 average as compared with 75 per cent a year ago. Commodity prices. The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, showed little change during September and the first three weeks of October. Prices of grains decreased in the middle of Oc tober, following a considerable ad vance, while prices of silk, hides, and copper increased throughout the period. Bank credit. Reserves of member WHOLESALE PRICES — Adjustedfor seasons! variation — Without seasonal adjustment Index of industrial production, adjusted for seasonal variation. (1923-1925 averages 100.) Index of factory employment, adjusted for seasQnal variation. (1923-1925 average = 100.) Indexes of daily average value of sales. 1925 = 100.) (1923 Page One banks continued to increase during the five weeks ending October 23, reflect ing chiefly imports of gold from abroad. At the end of the period re serves in excess of legal requirements at $2,930,000,000 were at the highest level on record. At weekly reporting member banks in 91 leading cities, adjusted demand deposits increased by $40,000,000 dur ing the four weeks ending October 16, while United States Government de posits declined and interbank balances rose to a new high level. Loans on securities decreased by $40,000,000, while other loans, including commer cial credits, increased by $80,000,000. Yields on both short-term and long term government obligations increased from the last week in August to the first part of October and subsequently declined. Other short-term open-mar ket money rates remained at previous low levels. Business and Banking Conditions in the Philadelphia Federal Reserve District Business conditions in the Philadel phia Federal Reserve District have continued to reflect moderate improve ment this autumn with respect to out put and sale of goods, and income from most sources. Industrial pro duction during September increased considerably and was 7 per cent larger in the first nine months this year than last. The value of contracts awarded for nearly all types of building and the rate of construction have continued in creasing since late spring, though the gain in contracts during September was due entirely to public works. Farm activity on the whole has meas ured up to the average for this season, and income of farmers from the sale of various products continues larger than in recent years, mainly because of higher prices. The general level of prices for commodities has been firm. Distribution of commodities through the usual channels has been increasing. Retail and wholesale trade sales in September showed gains of larger pro portions than customary at this sea son and have continued well ahead of last year. Shipments of goods by rail and motor freight also provide evi dence of sustained demand. Commer cial hotels report a noticeable increase in the number of business travelers as shown by larger room occupancy and income of these hotels. The number of workers in twelve character and appears to be well di branches of trade and industry in versified, not only among the principal Pennsylvania was about 3 per cent industrial groups but also among the larger in the middle of September than individual lines of manufacture. Tex a month ago. Earnings of these work tile and related industries in particular ers also increased 5 per cent in the seem to have had an active fall season month. Compared with a year ago, so far, as shown by forward commit general employment was approximately ments, repeat orders and shipments. one per cent larger and income, prin The metal group comprising primary cipally from wages, 13 per cent and secondary iron and steel products greater. Early reports for October in also has registered further increases in dicate that the levels of general em the volume of business as has the ployment and earnings have continued transportation equipment group. Nor do the reports from most of the other well maintained. Manufacturing. The demand for manufacturing groups lack evidence of manufactured products in this district seasonal activity and more favorable has been increasingly active since mid trend than at the same time in the past summer and sales have continued in two years. Stocks of finished products have October to be larger than a year ago. The volume of unfilled orders for vari been reduced further during the month ous manufactures in the aggregate has and, with but few exceptions, are expanded further in early October and smaller than a year ago, reflecting appears to be appreciably greater than more active buying. With respect to at the same time last year. Prices inventories of raw materials, there is have been firm and in many cases, par some evidence that the purchase of ticularly textiles, foods and leather, ad commodities for manufacturing pur vances have been reported by local fac poses has slackened somewhat since tories. The price index of the Bureau the middle of September but the ag of Labor Statistics for commodities gregate volume seems to continue exclusive of farm products and foods larger than a year earlier. Settle on October 19 was 78.4, relative to the ments for purchases by manufacturers 1926 average, as compared with 78.2 and distributors likewise appear to be larger and more prompt than was the a month ago and 77.9 a year before. This improvement in the market for case last year. The number of wage earners and manufactures is largely seasonal in MERCANTILE TRADE INDUSTRIAL PRODUCTION PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT RETAIL DOLLAR SALES CRUDE 0IL(BRADfORD held) WHOLESALE --------DOLLAR SALES' MANUFACTURING A0JU5TCD TOR SEASONAL VARIATION 193 I 1932 http://fraser.stlouisfed.org/ Page Two Federal Reserve Bank of St. Louis 1933 1934 1935 1931 1933 1933 1934 I 935 the amount of wage payments ex panded by about the usual seasonal volume from the middle of August to the middle of September and have con tinued to maintain the customary levels in October as shown by preliminary re ports. The trend of factory employ ment, payrolls and employee-hours actually worked has been generally steady and slightly upward during the past two years. The employment index for Pennsyl vania factories in September was 78.3, relative to the 1923-25 average, or nearly 8 per cent higher than a year ago. The index of wage disburse ments was about 65, showing a gain of 21 per cent over last year. These comparisons reflect in part the fact that in September last year there was an unusually large number of strikes and lockouts in this section. In the case of many textile industries a com plete shutdown occurred for periods running from several days to two weeks or longer, so that the gains of 22 per cent in employment, 38 per cent in payrolls and 47 per cent in the volume of work done in September this year over last naturally reflect the influence of an abnormal condition. The trend of factory production in this district has been steadily upward since June. Our index number of pro ductive activity, which is adjusted for working days and seasonal influences, rose in September to 75 per cent of the 1923-25 average as compared with 74 in August, 72 in July and 69 in June; a year ago it was 62. The aver age of this index in the first nine months this year was 8 per cent higher than that in the same period last year. Productive activity in the durable goods industries showed an improve ment of 8 per cent from August to September, owing principally to ac tivity of steel works and rolling mills, electrical apparatus plants, and most of the transportation equipment indus tries, particularly shipbuilding, and automobile parts and bodies. The non-durable goods group as a whole showed a slight drop during the month, reflecting chiefly a falling off in activity of silk and wool manufac tures, carpets and rugs, sugar refining, and canning and preserving. Output of electric power during September failed to maintain the usual seasonal rate of change by about 3 per cent but for the year to date pro duction was 2 per cent larger than in the same period last year. Industrial consumption of electrical energy in September was 5 per cent greater than was to be normally expected and 7 Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted indexes allow for the usual seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not be typical. Adjusted for seasonal variation Sept July Aug. Sept. 1934 1935 1935 1935 Sept, from Month Year ago ago Industrial production................... 65 74 Manufacturing—total....................... 62 72 Durable goods.............................. 48 53 Consumers’ goods......................... 73 86 Metal products............................... 50 60 Textile products............................. 59 85 Transportation equipment.......... 43 33 Food products................................. 76 75 Tobacco and products.................. 89 88 Building materials......................... 29 30 Chemicals and products............... 99 103 Leather and products.................... 110 141 r Paper and printing........................ 77 80 Coal mining......................................... 61 61 Anthracite........................................ 62 62 Bituminous...................................... 55 54 Crude oil.............................................. 362 375 Electric power Output.............................................. 190 209 Sales, total J..................................... Sales to industries j........................ 1.44 Employment and wages—Pa.. Factory—-Wage earners.................... Payrolls........................................ Man-hours (1927-28= 100)......... General (1932= 100) Employment................................... Payrolls............................................ Building and real estate Contracts awardedt—total............. Residential!..................................... Non-residentialJ............................ Public works and utilities!.......... Permits for building—17 cities. . . . Mortgages recorded—Philadelphia. Real estate deeds—Philadelphia . . Sheriff deeds (1930= 100)............ Other deeds (1930 =100)............ Writs for Sheriff sales—Phila.......... 805 Distribution Retail trade—sales............................ 69 stocks.......................... 64 r Wholesale trade—sales..................... 72 stocks.................. 65 Life insurance sales............................ 106 New passenger auto, registrations . 69 Hotels—Occupancy (1934 = 100) . Income, total (1934 =lOOj. Freight car loadings—total............. Merchandise and miscellaneous. Coal.................................................... Business liquidations Number................................................. Amount of liabilities.......................... Payment of accounts Check payments................................. 77 66 Rate of collections (actual) Retail trade..................................... Wholesale trade.............................. Prices—United States Wholesale (1926 = 100)................. Farm products................................ Foods................................................ Other commodities........................ Retail food (1913 = 100)............... Philadelphia.................................... Scranton........................................... (In millions of dollars) Not adjusted Per cent ch mge 74 74 53 91 62 96 36 71 84 28 104 128 80 365 77p 75p 57p 89p 65p 90p 51 69p 92 28 llOp 127p 83 63p 65p 49 377 201 196 38 36 56 i38 + + + + — + + + + — + + + — + _ — 1.45 + 5 2 8 1 4 6 42 3 9 1 6 1 4 65 8L 12 3 + + + + + + + + + + + + + + 3 + 0* + 5 + 18 21 20 22 29 52 18 9 3 2 11 15 8 3 5 11 4 3 1* 7 1935 Sept. July Aug. Sept. from 1934 1935 1935 1935 9 mos. 1934 + 7 + 8 + 6 +10 +12 +24 — 4 - 6 - 0 — 2 + 1 + 3 + 2 -11 -11 — 1 +10 67 64 70 69 73 74 79p 77p 51 58 65 60 79 91 40 32 34 80 73 72 103 94 90 31 32 31 98 101 104 121 128r 130 76 77 78 51 61 38 62 51 36 57 48 53 362 386 376 65p 92p 48 73p 106 30 109p 138p 82 63p 65p 50 377 + 2 186 195 191 + 1* + 7 143 146 143 153 + + + 2* + 8* 2* + 21* i* + 25* 77 64 64 78 65 65 + + 3* + 1* — 1* 107 105 105 5* + 13* + 4* 113 115 122 108 128 + 24 + 11 — 1 +149 + 14 — 41 + 38 -IS +33 +147 + 0 + 14 -48 + 14 +30 + 84 -20 27 20 _+ 14* 946 673 - 29 - 16 67 62 77 63 105 90 79p 64p 79p 63p 111 71 + + + + + — + + + — + 18 4 4 1 6 21 15* 20* 1 0 6 + 3* + 9* + 6* 192 — 3 + 14 + 2 + 0 + 10 + 5 — 2 + 5 + 2 +26 + 2* + 7* + 4* + 8* + 9 + 0 + 12 + 1 2 - 1 73 53 52 75 58 58 24 9 30 57 7 5 30 24 28 20 21 29 35 20 31 10 12 7 6 38 76 69 64 934 634 908 34 23 34 64 14 4 24 17 54 781 62 49 67 55 82 70 67 62 85 95 66 113 103 90 95 77 57 55 58 58 58 43 52 59 72 64 88 99 91 82 58 60 50 71p 67p 90p 66p 89 68 105p 98p 63 65 57 + 0* + 16* +20* 6* — 22* -38* 60 82 61 45 69 61 69 64 + 2 + 23 62 75 68 77 — + 1 1 + 25 69 30 68 27 66 26 67 + + + — + + + 0* 0* 1* 0* 1* 1* 1* + 4* + 7* 78 79 80 + 8* +24* 73 77 79 + 13* +20* 76 82 85 — i* - 1* 78 78 78 + 6* + 12* 117 122 123 + 4* + 7* 123 125 127 + 5* + 7* 120 123 124 81 79 86 78 124 127 125 +21 7 3 % change from Sept. 1934 June 1935 July 1935 Aug. 1935 Sept. 1935 $ $ $ $ $ Month ago Year ago Banking and credit Federal Reserve Bank Bills discounted.............................. Other bills and securities............. Member bank reserves................. Reserve ratio (per cent) ............. Reporting member banks Loans to customers........................ Other loans and investments... Total (gross) deposits................... Bankers’ acceptances outstanding. 5 168 190 65.9 1 178 227 67.4 1 181 226 66.6 1 181 232 67.1 1 181 242 69.9 0 0 +4 +4 — 80 + 8 +27 + 6 *454 611 1.194 13.2 *417 670 1,318 12.9 $417 674 1,307 12.2 $414 668 1,300 12.9 $408 681 1,332 13.4 —1 +2 +2 — 10 +11 +12 + 2 * Computed from data unadjusted for seasonal variation. ! 3-month moving daily average centered at 3rd month. +4 p—Preliminary. r—'Revised, t Not included in production index. Page Three OUTPUT OF METAL PRODUCTS TEXTILE FIBERS PHILADELPHIA FEDERAL RESERVE DISTRICT 1921 •23AVC.IIOO MILLIONS OF LBS" 300 - \ >. 200 v\ MILL TAKINGS UNITED STATES COTTON DOLLARS PER LB * 100 U • • • v\ • •# • --- V*„ V STEEL NCOTS 20 - .10 ioo p ELECTRICAL . APPARATUS » M/ v\ - MILL TAKINGS /♦ V • • • • • pc \K/V :0r\ w -A. /-*S MILL TAKINGS ADJUSTED TOR SEASONAL VAR AT ION 1930 1931 1932 1933 per cent larger than last year. Total sales of electricity for all purposes de clined from August to September but increased somewhat in October, ac cording to preliminary reports. Coal and other fuels. Production and shipments of anthracite turned sharply upward in September, indicating the beginning of customary fall activity after two months of unusual decline. Figures for early October indicate a further increase in output. At the be ginning of September, stocks held by retail dealers and electric power plants were about 5 per cent below those of a month ago, but supplies at producers’ yards and railroads were over 20 per cent larger than on August 1. Output of bituminous coal fell off in Septem ber, in contrast to the usual upward tendency, reflecting largely labor diffi culties of brief duration. Shipments, however, continued to increase. The volume of coal mined in August and September combined was 6 per cent smaller in the case of bituminous and 10 per cent less in anthracite fuel than in the same two months last year. 1934 1935 1931 1932 to the customary decline at this time. For the year to date, it was 4 per cent above the corresponding period of 1934. Output of gas and fuel oils ad vanced more noticeably in September than in the previous month. For the first nine months of 1935 compared with the same interval a year ago, there was a 6 per cent decline. Awards of building contracts in September to taled $10,085,500, a gain of 12 per cent over August and an increase of 56 per cent as compared with a year ago. This improvement was contrary to seasonal tendency and reflected an ex ceptionally sharp rise in the value of contracts let for public works and util ities. Residential contract awards de clined in September by a smaller per centage than usual, as did those for such non-residential structures as fac tory and commercial buildings. Thus far this year the dollar volume of con tracts let for family houses has shown a marked increase over a year ago, constituting nearly 27 per cent of all contract awards in the first nine months this year as compared with 16 Per cent change from (Output and shipment per cent in the same period of 1934. Sept. figures are daily 1935 Month Year averages) Building operations on contracts ago ago previously awarded continued to ex Anthracite pand during September, as indicated + 5 +81 Production.............tons 174,000 +67 + 3 Shipments..............tons 163,100 by additional gains in employment, l,758t +20 -20 Stocks.......... 1000 tons - 1 + 3 Prices___ (1926 = 100) 80.6 payrolls and working time. Activity — 18 79,173 +19 Employment.......... No. in miscellaneous types of contracting Bituminous -11 - 5 Production............. tons 238,700 work decreased somewhat from the — 9 + 9 Shipments... .No. cars 20,651 — 0 + 0 Prices. . . .(1926=100) 96.2 August level, while street and highway - 2 + 4 Employment.......... No. 126,704 Coke construction declined sharply. +30 + 5 87.3 Prod.. .(1923-23=100) 0 + 4 Prices. . . .(1926 = 100) 88.6 The local real estate market has Gas and fuel oil shown more activity of late as evi — 1 107.2* +12 Prod... (1923-25 =100) 62.4t — 2 + 8 Prices___ (1926 = 100) denced by a further improvement in the renting demand for small houses Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. t August. and apartments and some increase in Production of by-product coke in the sale of properties, largely those in creased further in September, contrary the $4,000 to $5,000 class. Rentals Page Four Building and real estate. 1933 1934 Building contracts Philadelphia Federal Reserve District 1935 1936 Per cent change Sept. 1935 1935 (000’s From from omitted) month 9 mos. ago 1934 Residential........................... $ 2,283 Apts, and hotels............. 137 Family houses................. 2,146 Non-resident;al.................. 2,478 Commercial..................... 601 Factories........................... 311 Educational..................... 439 All other........................... 1,127 6 11 6 45 60 60 7 36 +33 + 3 +40 + 0 + O - 8 -56 +72 Total buildings.......... $ 4,761 - 31 Public works and utilities. 5,324 + 160 +12 -48 Grand total................. $10,085 — - + 12 -15 Source: F. W. Dodge Corporation. also have shown an upward tendency for several months. Thus far this year ordinary conveyances in some of the larger city areas including Phila delphia, Harrisburg, Scranton and Lancaster have increased by fairly large percentages over the same period of 1934. Real estate foreclosures have declined in most sections, although they continue more numerous than in the pre-depression years. Agriculture. The agricultural situa tion in general has improved further since the middle of last month and compares favorably with that of a year Seasonal farming operations ago. have progressed at about the usual rate and estimated yields of important field crops in this district have been revised upward. Department of Agriculture reports based on the October 1 condition of six leading field crops indicate that yields this year of corn, hay and white potatoes may exceed the average of the five years, 1928-32. Compared with last year’s harvest, production of white potatoes will be smaller, while that of corn, wheat, oats, hay and tobacco is expected to show some increase. Esti mates of the fruit crop also indicate WORKING HOURS AND HOURLY EARNINGS VALUE OF BUILDING CONTRACTS AWARDED PENNSYLVANIA FACTORIES PHILADELPHIA FEDERAL RESERVE DISTRICT HOURS CENTS PERCENT EARNINGS PER HOUR PRICES OT BUILDING MATERIALS (i*»?€=ioo) TOTAL HOURS WORKED RESIDENTIAL"^ **.- t " CONTRACTS ADJUSTED TOR SEASONAL VARIATION (l923-2&rlOo) 1930 1931 1932 1933 1935 193 1 1932 1933 1934 1935 1936 Source: F. W. Dodge Corporation that yields this year will be substan tially larger than in 1934. Sales of farm products have been considerably larger thus far this year than last, owing mainly to higher prices, particularly for meat animals and dairy and poultry products. In Pennsylvania, for example, the Bureau of Agricultural Economics has esti mated that cash income from farm pro duction, including rental and benefit payments, totaled $119,292,000 in the first seven months this year, as com pared with $102,436,000 a year earlier. Wholesale prices of farm products have fluctuated narrowly in recent weeks but at higher levels than a year ago. At 79.5 per cent of the 1926 aver age, the Bureau of Labor Statistics’ index for the week ended October 19 compared with 81.3 a month earlier and 70.9 a year ago. Distribution, trade and service. Freight car loadings in this section increased about one per cent more than usual from August to September ow ing mainly to larger than seasonal gains in shipments of coal, livestock, coke and forest products. Deliveries of merchandise and miscellaneous com modities were maintained at about their customary seasonal level in Sep tember, while grain shipments declined more sharply than was to be expected. Rail freight consisting largely of man ufactures originating in the Philadel phia industrial area also increased in September by a larger percentage than usual and continued in somewhat greater volume than a year ago. Business at wholesale, as measured by the dollar sales of eight important lines combined, increased 4 per cent from August to September, after al lowance is made for the usual seasonal change. Improvement in the sales of drugs, dry goods, groceries, hardware, jewelry and paper was partially offset by the failure of boots and shoes and electrical supplies to maintain their customary seasonal level. As com pared with a year ago, aggregate sales in September were 10 per cent larger and in the first nine months this year showed a gain of 5 per cent from the same period of 1934, reflecting partly higher prices. Early reports for Oc tober indicate some improvement in demand for dry goods, jewelry and electrical supplies. Retail trade sales of department, ap parel, shoe and credit stores were 35 per cent larger in September than in August; this was a much higher rate of increase than usual and indicated an improvement of about 18 per cent after allowance is made for the num ber of trading days and the customary seasonal change. Total dollar sales in September showed an increase of 14 per cent over a year ago and were 2 per cent larger in the first nine months this year than last. Preliminary re ports for October show further sea sonal gains in sales of general mer chandise. Inventories of merchandise in both channels of trade increased somewhat more than usual from August to Sep tember. As compared with a year ago they were 2 per cent smaller at whole sale but showed virtually no change at retail establishments. Rate of stock turnover in wholesale lines was one per cent and at retail stores 6 per cent more rapid in the first nine months this year than last. Sales of new passenger automobiles, as measured by registrations in this district, declined more sharply than usual from August to September, owing partly to the early introduction of new models. As compared with a year ago, however, they were 2 per cent larger, and the number of units sold thus far this year was 26 per cent greater than in the first nine months of 1934. Reflecting improvement in general business conditions, activity of com mercial hotels, exclusive of resort ho tels, increased substantially during September as contrasted with the pre vious month and last year. The ac companying table gives comparisons. Hotel business Philadelphia Federal Reserve District Sept., per cent change from Month Year ago ago + 0 Room occupancy................ +15 Per cent of capacity used: Sept. 1935............ 48.5 Aug. 1935............ 41.5 Sept. 1934............ 46.8 Income from: Guest rooms.................... ' +17 Food................................... +29 Other sources.................. +17 Total revenue............. +20 1935 from 9 mos. 1934 — 0 + 2 + 7 + 0 + 3 +13 + 6 + 7 +11 + 4 + 8 Banking conditions. Borrowings of members from this bank declined from approximately half a million dollars on September 18 to only 131 thousands on October 23, a new low point. The total of reserve bank credit extended locally, however, increased 3 millions, owing to a rise in the amount of checks for which credit had been given to banks prior to collection and an ex pansion from 4j4 to nearly 7 millions in outstanding industrial advances made to provide established businesses with working capital. This figure is net, representing the difference be tween advances of over 9l/i millions and repayments of more than 2J4 mil lions. To date this bank has approved loans and commitments for working capital purposes in the aggregate amount of 22j4 millions. The local supply of funds also was Page Five ALLEGHENY DISTRICT PERCENT MERCHANDISE AND MISCELLANEOUS (6*9% or total) (23.5% or total TOTAL 1930 1932 1933 Reporting member hanks (000,000's omitted) Loans on securities: To brokers and dealers in N. Y. City............ To brokers and dealers elsewhere................... To others...................... Oct. 23, 1935 $ Total loans on securities Acceptances and commercial paper bought. Loans on real estate.... Other loans...................... » Total loans............... U. S. Government securities............................... Obligations fully guar anteed by U. S. Gov’t Other securities.............. $ Page Six Five weeks $0 13 i 2 One year -$ + - 177 -* i -* 27 22 68 172 + - + - i 1 1 - 3 13 151 2 22 2 4 10 439 -* 2 -$ 39 281 — 1 - 8 93 288 + + 4 3 + + 72 19 Total loans and investments.............. $1,101 Reserve with Federal Reserve Bank.............. 186 Due from banks............. 168 Deposits: Interbank balances. . . 303 Demand......... 769 Time............... 270 United States 27 Other.............. 8 Total (gross) deposits. . Changes in— $1,377 +$ 4 +$ 44 + + + + 8 7 61 29 + 13 + 21 — 1 - 9 0 + 48 + 172 — 29 - 20 0 +$24 +*171 Changes in—• Federal Reserve Bank of Philadelphia (In millions of dollars) Oct. 23, 1935 Bills discounted .. $ 0.1 0.5 Bills bought.......... Industrial ad6.9 vances................. United States securities................ 177.1 0 Other securities . . Total bills and securities. . . Fed. res. note cirdilation.............. Member bank reserve deposits .. U. S. Treasurer— general account. Foreign bank deposits................... Other deposits---Total reserves.... Reserve ratio........ One year Five weeks 2.2 0.1 -$ 0.4 - 0.0 -* — + + 6.7 + 10.0 0.3 7 augmented by a favorable balance of payments in commercial and financial transactions with other districts of about 2y2 millions, and by a 17}4 million excess of Treasury disburse ments over receipts. In the disburse ments were included relief funds and substantial amounts of cash redemp tions of Government securities and in terest on Federal debt. Among the receipts were 11 millions received from depositary banks; the bulk of this was upon call by the Treasury, but part also represented amounts turned over voluntarily by the banks. The sums derived from these varied sources were offset partially by a small increase in currency demand and a rise of 6^2 millions in miscellaneous deposits at this bank. The greater part of the funds, however, appeared Deposits are 171 millions or 14 per cent greater than a year ago, with demand deposits showing much the greatest rise of any classification and doubtless reflecting in a measure Gov ernment expenditures. The increased supply of funds in the hands of the banks has been used mainly to add to holdings of securities other than those of the United States Government, holdings of which decreased 8 millions, and to increase balances at the reserve bank. According to the American Accep tance Council, outstanding acceptances of banks in this district increased from $12,852,000 to $13,423,000 during Sep tember and at the end of the month were a little in excess of a year ago. The national figures, however, con tinue materially under last year’s fig ures. Bills covering exports have de clined 61 millions despite the fact that exports (including re-exports) in the third quarter of the year were slightly greater than a year ago. The largest decline was that of nearly 100 millions in bills covering domestic warehouse credits; such bills now total 58 millions as compared with 223 millions two years ago. 14.1 2.6 0 0 1 as an increase of 16)4 millions in member bank re serve deposits, which totaled 265 millions on Octo ber 23 and a week earlier had reached ) a record at over 270 millions. In September re serve deposits of member banks as a whole averaged over 242 millions, a rise of 10 mil lions over August. As there also was 1935 a decline in legal requirements, e x cess reserves rose from 96 to 107 mil lions, the largest so far attained in the monthly figures. The excess was 88 per cent in the case of banks in Phila delphia and 63 per cent for those else where in the district. Deposits reached a peak of 1,399 millions at reporting member banks on October 16; the total of 1,377 millions on October 23 was 24 millions greater than the amount on September 18. The increase in the five weeks was chiefly in demand deposits and inter bank balances, while United States de posits declined and time funds fell off slightly. Outstanding credit of these banks increased 4 millions. This was due mainly to the purchase of 4 mil lions of obligations fully guaranteed by the Federal Government and 3 mil lions of miscellaneous securities ; hold ings of direct issues of the United States declined a little, and there also was a decrease of 3 millions in loans to customers. Loans on stock and bond collateral have declined 11 per cent at these banks since the middle of March despite an advance in cor porate bond prices and a much more pronounced rise in stock prices. FREIGHT CAR LOADINGS +$ 2.2 $184.6 254.5 + 6.3 + 17.8 265.1 + 16.4 + 66.1 — — 1.2 2.9 2.2 66.2 425.9 72.1% 2.4 + 0.3 + 6.5 + 23.7 + 0.8% 1.3 + + 63.0 + 131 .5 5.8% + MEMBER BANK RESERVES AND RELATED FACTORS Changes in weeks ending— Philadelphia Federal Reserve District (In millions of dollars) Sept. 25 Oct. 2 Sources of funds: ' Reserve bank credit extended in district............... + 0.4 4- 0.8 Commercial transfers (chiefly interdistrict)......... - 5.8 +13.2 Treasury operations.................................................... — 2.7 — 1.6 Total....................................................................... - 8.1 Uses of funds: Currency demand......................................................... Member bank reserve deposits................................. “Other” deposits at reserve bank........................... Unexpended capital funds of reserve bank........... +12.4 - 0.8 + 0.8 -10.8 +13.4 + 3.5 — 1.7 - 0.0 - 0.1 Total....................................................................... - 8.1 + 12.4 Changes in five weeks Oct. 9 Oct. 16 Oct. 23 + 2.5 + 2.7 +14.1 +1.7 +1.0 +5.5 -2.4 -7.9 +1.9 + 3.0 + 3.2 +17.2 + 19.3 +8.2 -8.4 +23.4 + + + + 1.3 9.9 8.0 0.1 +1.0 +8.9 -1.7 -0.0 -1.8 -5.0 -1.6 +0.0 + 0.5 +16.4 + 6.5 + 0.0 + 19.3 +8.2 -8.4 +23.4 Employment and Payrolls in Pennsylvania CURRENCY DEMAND PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS (All figures are rounded from original data) Manufacturing Indexes Employment* Payrolls* (Indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and group indexes are weighted Sept. change from Sept. change from 1935 1935 proportionately.) index Sept. Aug. index Sept. Aug. 1934 1935 1934 1935 All manufacturing...... 1932 1933 1934 Iron, steel and products . Non-ferrous metal prods Transportation equip.. Textiles and clothing.. Textiles....................... Clothing..................... Food products............... Stone, clay and glass.. Lumber products......... Chemicals and product Leather and products. Paper and printing___ Printing...................... Others: Cigars and tobacco. Rubber tires, goods. Musical instruments 1935 LOANS TO CUSTOMERS REPORTING MEMBER BANKS Employehours! Sept. 1935 per cent change from Sept. Aug. 1934 1935 78 + 8 65 + 7 103 +12 52 + 3 102 +16 99 +22 112 — 2 110 - 0 75 +n 61 + S 84 — 6 97 + 8 91 + 3 85 + 3 +2 +2 +1 +4 +1 +1 +1 +7 +2 +0 +2 -2 +2 +2 65 57 94 34 89 88 95 98 57 47 71 85 84 82 +21 +31 +24 - 1 +33 +38 +16 + 6 +29 +14 - 1 +12 + 9 + 8 71 + 3 71 — 2 53 +16 +3 +1 +8 62 54 47 + 8 +10 - 0 + 7 - 2 - 7 + 4 - 6 +21 +19 +26 +20 + + + + + + - 2 +25 +1 0 +33 - 0 3 +33 — 2 4 - 2 - 2 3 +41 + 3 3 +47 + 3 S + 16 + 2 9 + 4 + 13 2 +29 + 4 1 + 15 — 4 0 + 5 + o - 7 + 17 - 5 + 7 + 9 + 5 + 7 + 7 + 6 PHILA FED* RES DISTRICT * Figures from 2281 plants. MILLIONS t Figures from 2054 plants. $ SECURED BY 300 — STOCKS AND BONDS *•*»•. General Index Numbers Covering twelve branches of trade and industry \ \ *♦< L ALL other 150 1933 1934 1935 Percentage change—September 1935 from September 1934 City areas* Manufacturing Employ ment Wage payments Building permits (value) Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... York....................... + 2 + 7 +10 — 2 + 17 +11 + 11 + 2 — 4 + 0 + 13 - 1 + 11 +16 - 3 +22 +25 +31 +20 +20 + 6 +19 +25 +26 + 4 +25 — 22 - 42 + 312 — 51 + 72 + 81 - 92 — 38 — 7 - 62 + 235 +1667 + 67 Allentown............. Altoona................. Harrisburg........... Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre.... Williamsport........ Wilmington.......... Y ork....................... + + + + + Debits + 8 +16 + 16 +n +32 +19 + 4 + 4 + 1 +17 +21 +20 Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) Sept. 1935 index General index (weighted)___ 108 Manufacturing............................. Anthracite ruining....................... Bituminous coal mining............ Building and construction........ Quarrying and non-met. ruining Crude petroleum producing. . . Public utilities............................ Retail trade...................... Wholesale trade........................... Hotels......................................... Laundries..................................... Dyeing and cleaning.................. 123 74 119 68 101 202 90 107 107 101 95 98 Per cent change from Sept. 1934 Aug. 1935 +1 + 8 — 18 — 2 -19 -17 +20 - 0 +1 + 3 - 8 — 1 — 2 + 2 +19 + 4 - 1 — 3 - 2 + o + 7 + 2 — 1 — 0 + 4 + 3 Payrolls Sept. 1935 index Per cent change from Sept. 1934 128 + 13 157 72 165 70 141 186 90 107 103 98 95 111 +21 — 18 +18 — 3 + 4 +24 + 2 + 3 + 6 — 4 + 4 + 4 Aug. 1935 + 5 + 2 +35 +35 + 5 — 2 + 7 — ] + 7 + 4 + 1 + 2 +16 Retail trade sales +14 + 8 + 6 + 4 + 0 +13 + 3 + 3 + 8 + 4 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUFACTURING AND NON-MANUFACTURING INDUSTRIES PERCENT PAYROLLS + 8 September 1935 from August 1935 1 0 2 0 6 3 1 — 4 — 14 + 2 - 2 - 5 - 5 + + + + + + — — + + 2 1 1 1 7 +n + 4 + 4 6 4 2 4 9 _ + + 78 3 15 6 + 26 26 — 35 — 62 + 173 85 + 122 + 321 43 - 7 - 5 - 4 - 5 - 2 + 4 - 6 - 6 -13 - 8 — 8 +21 — 1 +18 + 4 +21 + 7 +10 +41 + 17 +41 +30 +22 EMPLOYMENT +21 1932 1933 1934 1935 * Area not restricted to the corporate limits of cities given here. Page Seven OUTPUT OF MANUFACTURES Index numbers of individual lines of trade and manufacture Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 Adjusted indexes allow for the usual seasonal change in activity. Not adjusted Adjusted for seasonal variation Per cent change Unadjusted indexes reflect merely the actual change which may or may not Sept. July Aug. Sept. be typical. 1934 1935 Sept, from Month Year ago ago 1935 Sept. July Aug. Sept. from 1934 1935 1935 1935 9 mos. 1934 Retail trade Sales Total of all stores............................ Department............................... Men’s apparel.......................... Women’s apparel..................... Shoe............................................. Credit.......................................... 69 66 r 61 r 104 83 58 67 62 64 r 85 56 75 67 65 59 r 110 53 57 Stocks of goods Total of all stores........................ Department............................... Men’s apparel........................... W omen’s apparel..................... Shoe............................................. Credit.......................................... 64 54 r 55 93 57 82 r 61 50 74 87 53 68 62 51 59 94 59 74 79p 72 72p 119p 82p 75p + 18 + 11 +22 + 0 +54 +33 + 14 + + 9 + + 18 + + 15 + 1 — + 29 + 64p + 4 + 54p + 60p + 2 + 97 + 3 + 57 - 3 78p + 5 — 2 2 4 3 2 7 0 0 9 5 0 5 Rate of stock turnover 9 months (actual, not indexes) + 6* 62 59 r 50 r 90 77 55 49 46 52 r 56 51 49 52 49 46r 75 44 54 71p 65 60p 103p 76p 72p 67 56 r 60 100 60 83 r 55 46 60 66 49 68 59 48 61 83 r 57 72 67p 56p 65p 104 60 79p 2.87 2.71 Wholesale trade Sales Total of all lines.......................... Boots and shoes....................... Drugs.......................................... Dry goods.................................. Electrical supplies................... Groceries.................................... Hardware................................... Jewelry....................................... Paper.......................................... 72 76 77 79p + 4 49 44 38 41 -11 89 88 88 92 + 4 37 38 34 38 +11 59 85 76 64 p -16 109 105 112 .119p + 6 44 47 48 51 + 7 32 37 35 51 +45 61 64 68 74 + 8 Stocks of goods Total of all lines.......................... Boots and shoes....................... * Drugs.......................................... Dry goods.................................. Electrical supplies................... Groceries.................................... Hardware................................. Jewelry..................................... Paper........................................ 65 24 116 46 78 70 61 53 56 + + + + + + + + + 10 + 5 82 15 + 2 55 4 + 1 91 2 — 8 49 8 + 2 71 9 + 6 121 18 + 10 46 60 + 18 39 21 + 7 62 62 63 63p + 1 _ 2 26 24 27 +12 + 11 97 107 108 + 1 — 7 38 40 40 — 1 — 14 94 86 87 + 1 + 12 67 66 65 6 — 1 69 70 69 — 1 + 13 46 49 54 +11 + 2 57 56 61 - 2 + 2 Rate of stock turnover 9 months (actual, not indexes) Output of manufactures 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........................... + 22 26 43 55 52 59 62 62 67 75 11 12 36 42 16 14 118 75 65 83 27 88 30 43 42 133 102 103 95 124 45 37 27 34 20 23 98 42 50 88 56 81 123 98 67 68 137 70 69 106 65 87 58 84 155 128r 70 78 136 78 33 57 64 56 76 13 47 r 18 78 106 r 81 43 131 121 126r 28 36 23 69 115 54 84 60 84 140 116 81 71 137 84 33 - 0 + 52 61 + <i + 42 53p -18 + 1 53 — 5 — 15 80 + 5 + 20 9 -34 — 28 58 +23 + 59 20 +12 + 42 142 +81 + 21 97 - 8 + 49 70 -13 + 157 45 + 4 + 48 102 —22 +145 125 + 4 + 22 121 — 4 + 27 30 + 5 — 33 41 +15 + 51 20 -13" — 1 0* + 6* 68 - 1 _ — 30 49 -57 + 17 51p — 5 + 1 91 + 0 + 3 61 + 0 + 8 87 + 4 + 8 137 - 2 + 12 116p +1 + 19 69 -14 + 4 73 + 3 + 8 152p + 11 + 11 91 + 8 + 30 * Computed from data unadjusted for seasonal variation. Page Eight 67 25 120 51 83 70 60 58 57 1* 12 + 7 + 9 — 9 + 24 + 4 — 6 — 11 — 1 + 3 + 87 + 9 + 125 + 16 + 20 — 12 + 7 + 2 1* _ — 21 — 16 — 4 + 0 + 6 + 1 + 5 + 1 — 6 + 3 + 2 + 4 70 72 90p 34 56 64 83 82 95 29 32 51 69 62 77p 106 110 132p 46 43 54 25 31 63 61 65 75 62 64 26 26 96 1 10 38 43 94 92 62 61 69 70 53 54 61 59 4.24 4 20 20 41 52 57 73 10 35 13 112 65 30 29 45 102 95 52 28 21 89 100 36 34 103 56 80 140 102 67 64 138 67 p—'Preliminary. 66p 28 111 44 93 65 68 59 58 24 50 57 55 79 11 40 16 73 81 82 38 121 85 103 44 33 25 87 62 108 54 94 55 82 144 113r 69 73 137 76 29 58 62 54 84 11 44 r 18 78 103r 83 38 120 105 117 r 36 37 25 84 61 99 57 90 60 81 150 111 81 73 138 83 31 58 53p 48 88 7 55 19 135 97 77 42 111 125 121 35 42 21 89 70 42 65p 106 61 87 157 121p 69 69 154p 87 r—Revised.
@FedFRASER