The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
■7TK '-/■■fir THE BUSINESS REVIEW RESERVE DISAlg THIRD FEDERAL PHILADELPHIA NOVEMBER i,> 19^ 193 % oV' FEDERAL RESERVE BANK OF P HIL A DE LPHLA>v ttt-1 ■ / %>// Business and Banking Conditions in the United States Volume of industrial production was maintained in September and employ ment at factories increased seasonally. Distribution of commodities to con sumers increased. Commercial loans of city banks showed further growth. Production and employment. Indus trial output in September, as measured by the Board’s seasonally adjusted in dex, was 109 per cent of the 1923-1925 average, approximately the level of the two preceding months. Output of steel was about the same as in August and in the first three weeks of October the rate of activity rose to a higher level than at any time since 1930. Auto mobile production showed a sharp sea sonal decline in September and a con siderable seasonal advance in the first three weeks of October. Production of lumber and cement showed a further rise and increases in activity were also reported at meat packing establish ments and at cotton and silk textile factories. At woolen mills there was little dhange in production although an increase is usual in September. Output of coal increased more than seasonally, and crude petroleum production con tinued in large volume. Factory employment increased sea sonally in September and payrolls were maintained at the August level. The number employed in most industries producing durable goods continued to increase, while at automobile factories there was a seasonal decline. Employ ment decreased at woolen mills and showed a smaller increase than is usual at this season at cotton mills and at establishments producing women’s clothing. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, declined somewhat further in September from the rela tively high level reached in the middle of the year. There was a decrease in awards for residential building, reflect ing chiefly a smaller volume of con tracts for apartment construction which in August had included several large publicly-financed projects. Awards for non-residential work declined, partly as a result of a reduction in contracts for public works and utilities which have been in large volume during recent months. Agriculture. Crop conditions im proved somewhat from September 1 to October 1, according to the Depart ment of Agriculture, but estimates for INDUSTR1AL PRODUCTION FACTORY EMPLOYMENT AND PAYROLLS corn and many other crops "aTer still considerably below the harvest or^t year. The cotton crop is estimated at 11,600,000 bales, an increase of 500,000 bales from the estimate made a month earlier and of 1,000,000 bales from the 1935 crop. Total cash farm income, including all government payments, is estimated by the Department of Agri culture at $7,850,000,000 for the calen dar year 1936 as compared with $7,090,000,000 in 1935. Distribution. Distribution of com modities to consumers increased by more than the usual amount in Sep tember, following a less than seasonal MEMBER BANK CREDIT Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934 to October 14, 1936. Loans on real estate, loans to banks, and acceptances and commercial paper bought included in total loans and in vestments but not shown separately. CONSTRUCTION CONTRACTS AWARDED Employment Payrolls.*' Index of physical volume of production, ad justed for seasonal variation. Indexes of number employed and payrolls, without adjustment for seasonal variation. Indexes compiled by the United States Bureau of Labor Statistics. Three-month moving averages of F. W. Dodge data for value of contracts awarded in 37 Eastern States, adjusted for seasonal varia tion. Latest figures based on data for July and August and estimate for September. . Page One rise between July and August. Sales at department and variety stores and by mail order houses serving rural areas were in larger volume in Sep tember. Volume of freight carried by rail roads increased, reflecting larger ship ments of coal, ore, and miscellaneous freight and a decline in loadings of grain. Commodity prices. The general level of wholesale commodity prices has shown little change in the last two months. From the middle of Septem ber to the third week in October sugar and butter prices declined, and there were decreases also in prices of hogs and pork, as is usual at this season. Price advances were reported for leather and coke and higher prices for some finished and semi-finished steel products became effective on October 1. Loans of reporting member banks in leading cities, other than loans on securities, continued to increase in September and the first half of October. On October 14 the volume of these loans was more than $400,000,000 larger than on July 29. About half of this increase was at New York City banks and the remainder principally at banks in Western and Southern cities. Holdings of United Bank credit. States Government obligations have de clined in recent weeks at New York City banks and have increased some what at other banks. Deposits of re porting banks have continued to in crease. Excess reserves of member banks in creased by $410,000,000 in the five weeks ending October 21, reflecting a reduction of $300,000,000 in Treasury holdings of cash and balances at the reserve banks and an increase of $250, 000,000 in monetary gold stock, the effects of which were partially offset by a seasonal increase in money in cir culation and a further growth in re quired reserves. Business and Banking Conditions in the Philadelphia Federal Reserve District Business activity in the Philadelphia Federal Reserve District continues to be well maintained. Industrial pro duction during September showed a slight improvement over August, ow ing to increased output of coal and crude oil. This bank’s adjusted index covering the output of factories and mines rose to 89, relative to the 1923-25 average, as compared with 88 in August and 77 a year ago. The dollar volume of building contracts awarded increased during the month and was substantially larger than last year. Construction and building operations also registered additional gains. Agricultural conditions in this dis trict as a whole compare favorably with previous years. Income from the sale of farm products has been consistently larger; the percentage increase in the sale of farm crops has been particularly large over last year, reflecting chiefly higher prices. But income from live stock products also indicates a notice able gain. Retail trade sales showed a marked improvement during September while business at wholesale was not quite as large as seasonal expectations would warrant; both continue to show marked gains over a year ago. Freight car loadings have been well sustained. Sales of new passenger automobiles declined in the month but were con siderably larger than a year ago. There was a pronounced increase in the activity of commercial travelers. General employment, as measured by this bank’s index covering twelve branches of trade and industry in Penn sylvania, showed a gain of 3 per cent from the middle of August to the middle of September and the expansion in payrolls amounted to about 2 per cent. The employment index, ex pressed in percentage of the 1932 aver age, was 118 and the payroll index was 158. Early figures for October indicate further seasonal gains. Manufacturing. Factory activity has continued at a fairly high level and the demand for manufactured products again has increased seasonally. Com pared with a year ago, sales have been considerably larger. Reports indicate that the volume of unfilled orders has expanded in the month and over last year. Prices of factory products have been firm, the index of the Bureau of Labor Statistics moving around 80 per cent of the 1926 average as compared with 78.4 a year ago. Stocks of finished goods at reporting plants generally show further reduc tions, particularly in the case of con sumers’ goods, the demand for which is seasonally active. Supplies of raw ma terials also show reductions in the month and are smaller than a year ago; in the case of silk, cotton, rubber and cement, inventories have been notice- BUILDING CONTRACTS-VALUE MANUFACTURING ACTIVITY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT avg. centered at 3'i montS.) PUBLIC WORKS -*// AND UTILITIES • PRODUCTION (adj. for SEAS, VAR.) Two DigitizedPage for FRASER EMPLOYMENT TOTAL T NON-RESIDENTIAL RESIDENTIAL PAYROLLS 1933 1934 1935 1936 1931 1932 1933 1934 1935 1936 ably smaller than at the same time in the past four years. Employment and payrolls in fac tories showed increases of about the usual seasonal proportions between the middle of August and the middle of September. Reports from Pennsyl vania factories registered a gain of over 2 per cent in the number of wage earners and about one per cent in payrolls and employee-hours worked. The increases on the whole have been rather well distributed between major groups of manufacturing. The em ployment index in September was 87 relative to the 1923-25 average or 11 per cent higher than last year. The payroll index was 82 or about 27 per cent above a year ago. Estimates indi cate that Pennsylvania factories in that month employed approximately 936,000 wage earners and paid out in wages over $21,157,000 a week. Manufacturing establishments in Delaware registered an increase of 6 per cent in employment, 5 per cent in wage payments and 7 per cent in working time from August to Septem ber. In comparison with a year ago the number of wage earners employed was 24 per cent larger and the amount of wage disbursements 30 per cent greater. Reports from manufacturing industries in southern New Jersey also registered a gain in employment but not in payrolls, although in contrast with a year ago both were about 16 per cent larger. Production of manufactures in the aggregate maintained about the same level in September as in the previous two months. This bank’s index of productive activity, which is adjusted for seasonal changes and working days, continued at 88 per cent of the 1923-25 average, or 18 per cent higher than in September last year and substantially above the level of the previous three years. Activity at industries producing du rable goods including steel, castings, electrical apparatus, shipbuilding and lumber showed some improvement dur ing the month. Output of textile prod ucts, on the other hand, failed to show the usual rate of gain between August and September, so that the adjusted index dropped from 99 in August to 92 in September. Improvement has been reported in the case of cigars and to bacco, and chemicals and allied prod ucts. Changes in other major groups during the month were slight. The average rate of factory production dur ing the first nine months of this year has been about 13 per cent higher than Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Not adjusted Per cent change Unadjusted indexes reflect merely the actual change which may or may not be typical. Sept. July Aug. Sept. 1935 1936 1936 1936 Sept. 1936 from Month Year ago ago Industrial production....... 77 75 57 Manufacturing—total............... Durable goods............................ Consumers’ goods..................... 88 Metal products...................... Textile products.................... Transportation equipment. Food products........................ Tobacco and products......... Building materials................ Chemicals and products. . . Leather and products.......... Paper and printing............... Coal mining................................. Anthracite............................... Bituminous............................. Crude oil...................................... Electric power Output..................................... Sales, totalt............................ Sales to industriest............... 65 88 51 69 92 28 110 127 83 63 65 49 377 89 88 88 88 80 78 94 96 90 87 92 99 77 80 85 77 98 95 42 42 119 117 142 135 84 85 67 50 65 47 82 76 428 430 201 236 234 191 221 227 145 157 167 89p + 1 88p 0 82 p +5 93p - 3 93 + 7 92p - 7 80 76p - 1 - 41 99 + 43 + 2 125p + 6 134p - 1 87 + 2 60p + 18 57p +21 80p + 5 461 + 7 + + + + + + + 16 18 43 5 44 4 58 + 11 + 8 + 51 ‘ 13 + 1 + + 1 + - 1 + 235 229 166 Employment and wages—Pa. Factory—Wage earners.................. Payrolls.......................................... Man-hours (1927-28 =100).... General (1932=100) Employment................................. Payrolls.......................................... 17 20 15 1936 from 9 mos. 1935 + 12 + 13 + 34 + 3 + 32 - 740 + + 8 + 9 + 31 + 12 + 13 + 14 + 14 + 2* + 11* + 6* + 1* + 27* + 20* + 1* + 32* + 25* Sept. July Aug. Sept. 1935 1936 1936 1936 78 77 85 65 90 48 72 106 30 109 138 82 63 65 50 377 86 85 75 82 106 45 117 129 81 55 53 72 441 84 88 88 91p 90p 91r 93 78 78 102 48 r 118 137 83 50 47 72 443 93 94p 76 82p 114 46 124p 147p 86 60p 57p 81p 461 230 227 176 197 219 222 189 208 216 153 161 172 78 65 65 82 77 80 85 82r 85 87 82 86 + 3* + 9* + 5* 108 113 114 128 148 154 + 2* + 23* + 17 118 158 +121 +149 +102 34 59 63 23 35 40 34 62 63 64 122 126 14 19 22 68 49 63 130 13 8 - 28 24 28 25 781 660 494 21 732 Building and real estate Contracts awarded!—total............. 57 62 Residential!..................................... 33 43 Non-residentialf............................ 64 62 Public works and utilities!......... 115 115 Permits for building—17 cities___ 16 24 Mortgages recorded—Philadelphia. Real estate deeds—Philadelphia. . 26 28 28 Writs for Sheriff sales—Phila......... 673 694 515 69 54 64 141 15 +11 +101 +25 + 4 +23 -40 +118 23 631 -17 +23 + 86 +102 - 5 +125 +110 Distribution Retail trade —sales..................... stocks.................. Wholesale trade—sales..................... stocks.................. Life insurance sales........................... New passenger auto, registrations. Hotels—Occupancy........................... Income, total...................... Freight car loadings—'total............. Merchandise and miscellaneous. Coal................................................... 79 66 78 63 111 71 80 80 70 89 87 69 68 95 133 100 112 68 87p 73p 86p 70p 103 92 72 69 88 11 65 10 89 + 4 - 7 - 8 68 -18 + 30 + 27 + 18* + 18* + 11* 104r +30* + 19* + 14* 98 26 + 16 63 + 1 + 65 - 2 + 22 + 16 57 + 4 + 23 + 5 + + + 1 + 3 + + 8 + 5 10 10 + 10 + 9 58 64 61 67 82 82 68 69 91 84 150 124 105 104 91 90 73 74 73 75 62 63 78p 76p 98p 72p 83 89 123p 117p 80 80 71 Business liquidations Number.................................... Amount of liabilities............ + 4* - 37* - 21* - 6* - 69* - 45* 68 r 54 59 r 23 41 20 42 18 77 80 75 85 27 67 32 79 29 74 27 75 81 79 86 78 80 81 77 80 81 81 79 84 86 81 82 84 83 80 84 86 81 82 84 83 80 Payment of accounts Check payments.................... Rate of collections (actual) Retail trade........................ Wholesale trade................. 81 88 2 - 2 + 3 + 0* + 0* + 0* 0* + 0* 0* — 0* + + + 11 + 8 + 1 + 13 Prices—United States (1926 =100). Farm products............... Foods............................... Other commodities. . . . Wholesale Retail food............................ Philadelphia................... Scranton.......................... Sept. 1935 (In millions of dollars) . + + + + + + 0* 2* 2* 2* 3* 3* 80 % change from June 1936 . + + + d- 1* 6* 3* 2* 5* 5* 4* July 1936 Aug. 1936 Sept. 1936 . Month ago Year ago 0 +ii + 2 +19 +46 + 2 + + - + 4 +12 +12 -15 Banking and credit Federal Reserve Bank Bills discounted.............................. f (a) Other bills and securities............. 182 Member bank reserves................. 242 Reserve ratio (per cent).............. 69.9 Reporting member banks Loans to customers....................... % 408 Other loans and investments. . . 680 Total deposits (adjusted)............ 1,283 Bankers’ acceptances outstanding, 13.4 * S (a) 184 276 73.5 % 413 763 1,274 10.9 $ (a) 217 316 69.9 $ 419 770 1,423 11.3 S * Computed from data unadjusted for seasonal variation. ! 3-month moving daily average centered at 3rd month, (a) Less than 5600,000. (a) 217 320 69.6 $ 421 767 1,412 12.3 $ (a) 217 354 71.0 423 762 1,433 ii.4 0 1 1 7 p—Preliminary. r—'Revised, t Not included in production index. Page Three TEXTILE FIBERS OUTPUT OF MANUFACTURES BY CLASSES PERCENT 200 DOLLARS PER LB. - 20 UNITED STATES MILLIONS OF LBS 300 ~ PHILADELPHIA FEDERAL RESERVE DISTRICT COTTON • 100 L 100 80 - DURABLE GOODS ADJUSTED TOR SEASONAL VARIATION 1932 1933 1934 in the same period last year, metal prod ucts, transportation equipment and building materials showing the largest gains, and the textile industries show ing the least favorable change. Output of electric power increased somewhat more than usual in Septem ber, following a smaller than seasonal gain a month before. Total sales of electricity registered a similar increase over August and were 20 per cent greater than a year ago. Industrial consumption of electrical energy also increased but by a slightly smaller per centage than is to be expected from August to September; nevertheless it was 15 per cent larger than last year, when computed on the basis of work ing days. In the first nine months this year production by eight systems and the total sales of ten systems were about 13 per cent greater than in the same interval of 1935. Coal and other fuels. Output of an thracite increased more than usual from August to September, following a downward trend in the previous three months. In early October production expanded further, owing to the more active demand for household fuel which ordinarily accompanies colder weather. Shipments during September showed a marked gain over the small volume which customarily prevails during the summer months. Stocks of anthracite in producers’ storage yards at the be ginning of September were consider ably larger than a year earlier but about equaled the average for that date in the past five years. Thus far this year anthracite production has been slightly smaller than in the same interval of 1935. Bituminous coal production in PennPage Four 1935 1932 1936 (Output and shipment figures are dailyaverages) Anthracite Production............. tons Shipments...............tons Stocks............ 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) Prices........ (1926=100) Sept. 1936 Per cent change from Month Year ago ago 152,700 149,551 l,992t 80.6 85,430 +23 +20 +28 + 2 +16 -12 - 8 + 13 0 + 3 388,240 27,348 97.0 127,672 +13 +14 + 1 + 2 +63 +32 +1 +1 118.0 93.9 + 2 + 0 +35 + 6 124.2* 66.3 + 5 0 + 19 + 6 Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. t September 1. sylvania, which has been maintained at a relatively high level since early this year, registered more than the cus tomary seasonal gain in September and was the largest for that month since 1930. Early reports for October indi cate that output showed some addi tional expansion during the first fort night of that month. Reflecting in part the increasing demand for industrial fuel by manufacturing plants and other commercial consumers, car loadings of soft coal have shown a marked gain for three consecutive months. The num ber of cars shipped during September was nearly one-third greater than a year earlier and exceeded that of any like month in the past five years. As in the case of coal, output of by product coke was maintained above its customary seasonal level in September and continued in much larger volume than last year. Production of gas and fuel oils also showed a gain over August and was about 7 per cent above the mid-summer low of last July. Compared with a year earlier, output during September was 19 per cent greater. 1933 1934 1935 1936 The value of all building contracts awarded in this district amounted to approximately $17,750,000 in September, an increase of 76 per cent over a year ago and the largest total for that month since 1930. This figure, while some 30 per cent below the monthly average of the three years, 1923-1925, was nearly four times as large as the volume reported for the same month four years ago. Compared with August, the Septem ber contract total showed a gain of about 3 per cent, owing principally to a sub stantial increase in the value of contracts awarded for public works and utilities. In the first nine months this year the dollar volume of all contract awards was one and one-quarter times larger than in the same interval of 1935. All types of construction shared in this in crease, but improvement over last year was especially pronounced in the case of contracts let for educational build ings, apartments and hotels, public works and utilities and family dwell ings. Building. Building contracts Philadelphia Federal Reserve District Per cent change Sept. 1936 from 1936 (000’s omitted) month from 9 mos. ago 1935 $ 6,727 2,754 3,973 5,420 873 1,154 1,020 2,373 + 1 + 8 - 3 -15 -17 +35 -66 +66 +110 +167 +100 +121 + 68 + 30 +658 + 47 $12,147 5^601 - 6 +33 +116 + 149 Grand total................. $17,748 + 3 +125 Public works and utilities. Source: F. W. Dodge Corporation. As indicated by employment, opera tions on contracts previously awarded have expanded further and continue larger than last year. The September MERCANTILE TRADE FREIGHT CAR LOADINGS PHILADELPHIA FEDERAL RESERVE DISTRICT ALLESHENY DISTRICT PERCENT I9c 3-25AVG.= IOO WHOLESALE DOLLAR SALES COAL (23.5/° OF TOT* MERCH ANDISE AND MIS :ellaneous (64.9,* OF TC tal) ^v7 4 Vv>. \ RETAIL DOLLAR SALES TOTAL ADJUSTEO FO 1932 1934 1935 1936 SEASONAL VA RIATION 1931 index of employment in plants produc has increased very sharply this year ing building materials was 72 per cent and in the seven months ended July of the 1923-1925 average, or 22 per was about 8 per cent greater than cent above the level of a year ago and in the same period of 1935 and the the highest of any month in the past largest for that interval since 1930. five years. Activity of plants produc Wholesale prices of agricultural com ing important building materials regis modities in the country as a whole have tered an additional gain from August fluctuated rather narrowly in recent to September, continuing an upward weeks around 85 per cent of the 1926 trend that has been virtually uninter average. The latest index of the Bu rupted for about six months. Demand reau of Labor Statistics stood at 84.7 for brick and cement has shown a sub per cent of this base period on Octo stantial expansion since early spring ber 17, compared with 84.8 four weeks and the volume continues to be the earlier and 79.5 a year ago. largest since 1931, despite some decline Distribution, trade and service. The between August and September. value of retail trade sales by depart Agriculture. Aided by favorable ment, apparel, shoe and credit stores, weather, seasonal farming in this dis when computed on a daily basis, was trict has progressed rapidly during the 10 per cent greater in September this past month. The apple harvest is well year than last. This gain was shared under way, digging of late potatoes is by all reporting lines, although the in nearly completed, and the winter wheat crease at women’s apparel stores was and rye crops have been planted. Sup slight. September sales by depart plies of subsoil moisture have been ment stores in this district as a whole replenished by recent rains, benefiting were 5 per cent larger than last year, particularly grass lands and the winter but in the case of Philadelphia stores virtually no change was recorded in grains. Estimated yields of several impor this interval. Retail trade sales in the tant field crops including corn, tobacco aggregate increased about 8 per cent and white potatoes have been revised more than usual in September, so that upward since September 1, according our seasonally adjusted index rose to to Department of Agriculture reports. 87 per cent of the 1923-1925 average With, the exception of tobacco, how from 80 a month before. Total dollar ever, which appears to be an unusually sales in the first nine months this year good crop this year, production is ex were 10 per cent greater than a year pected to be smaller than in 1935 and ago, the largest percentage gains oc somewhat below the average of the five curring at apparel and credit stores. Dollar sales during September in years, 1931-1935. An unusually small fruit crop is indicated this year, espe each of eight reporting branches of cially in the case of apples. The qual wholesale trade continued to exceed ity of orchard fruits, on the other those of a year ago. Compared with hand, appears to be considerably above August, combined figures showed a gain of slightly less than seasonal pro average. Reflecting chiefly higher prices, cash portions. Favorable changes in the income from farm production, exclu sale of drugs, hardware, jewelry and sive of rental and benefit payments, in paper were a little more than offset by the three states comprising this district . the failure of shoes, dry goods, elec 1932 1933 1934 1935 1936 trical supplies and groceries to main tain their customary seasonal levels in September. Thus far this year total sales have exceeded those of a year earlier by 9 per cent, owing in part to higher prices. Inventories of merchandise in both channels of trade increased somewhat from August to September and at the end of the latter month were about 10 per cent larger than a year ago, reflect ing chiefly higher prices and more ac tive business. The rate of stock turn over at retail was 7 per cent and at wholesale 5 per cent more rapid in the first nine months this year than last. The amount of collections in relation to receivables failed to maintain its customary seasonal rate in retail lines but increased more than usual at whole sale establishments. Compared with a year ago, payment of accounts in Sep tember was effected at a somewhat more rapid rate in both lines of trade, particularly at wholesale. Sales of new passenger automobiles in this district decreased further in September, as was to be expected in view of the fact that new models were soon to be introduced. The number of units sold, however, was 30 per cent greater than in September 1935 and was 27 per cent larger in the first nine months this year than last. Total freight car loadings in this section registered a slightly larger than seasonal gain from August to September, continuing an upward trend that has been almost continuous since early spring. In the first nine months this year total shipments were 16 per cent greater than in the same interval of 1935 and were the largest for that period since 1931. The volume of rail freight, consisting chiefly of manufac tures originating in the Philadelphia Page Five industrial area, declined slightly from the previous month when it was the highest since 1931-32. In early October shipments showed little change but they continued larger than last year. Business of non-resort commercial hotels increased sharply in September and continued at a substantially higher level than a year before. Thus far this year room occupancy has been 11 per cent and total revenue 14 per cent greater than in the same interval of 1935. Further details follow: Hotel business Philadelphia Federal Reserve District Room occupancy.................... Per cent of capacity used: Sept. 1936................ 57.0 Aug. 1930................ 47.9 Sept. 1935................ 48.5 Income from: Guest rooms......................... Food....................................... Other sources....................... Total revenue................... Sept, per cent 1936 change from from 9 Month Year mos. 1935 ago ago + 0 +18 + 1 +18 +n +23 +40 +31 +18 +20 +21 +13 + 14 +14 +30 +19 +14 Banking conditions. The reserve bal ances of member banks in this district moved sharply upward in the four weeks ending October 21 to a record peak of 420 millions, a volume 155 millions higher than a year ago. Much the greater part of this increase was in the figures of banks in Philadelphia. The principal source of the funds con tributing to the 61 million gain realized over the past month was a favorable balance of payments of 38 millions in commercial and financial transactions with other sections of the country, some part of which probably was the result of payments received for new securi ties. Another major factor in building up bank reserves was a 29 million ex cess of local Treasury disbursements over receipts. Factors having an op posite effect were relatively small, in cluding a 4 million rise in currency demand and a 2 million decrease in reserve bank credit caused chiefly by a falling off in float, which indicates the extent to which credit has been given to banks for checks before payment actually has been received here. In late months there has been little change in the amount of credit extended by this bank in the form of industrial advances made to supply established businesses with working capital. Out standing advances have continued to approximate 5 millions, and new appli cations have dwindled to rather small proportions. Discounts for member banks have been quite small for some time past. The decline that has taken Page Six Federal Reserve Bank of Philadelphia (Dollar figures in millions) October 21, 1936 Bills discounted.... S 0.1 Bills bought.............. 0.3 Industrial advances. 5.1 United States securities.................... 209.0 Total bills and securities................ $214.5 Fed. res. note circulation.................. 296.2 Member bank reserve deposits.... 420.3 U. S. Treasurer — general account.. . 2.1 Foreign bank deposits....................... 6.0 Other deposits.......... 1.6 Total reserves........... 535.1 Reserve ratio............ 73.7% Changes in— Four weeks One year -S0.3 - 0.0 - 0.0 -$ 0.0 - 0.2 - 1.9 - 2.2 + 31.9 -*2.5 +*29.8 4- 1.2 + 41.7 +61.6 +155.2 1936—Aug. —first half ..... —second half.. . Sept.—first half......... —second half.. . Oct. —-first half......... Oct. 21, 1936 (000,000’s omitted) Assets Loans to brokers and dealers: Outside New York City.. Loans on securities to others (except banks).... Acceptances and commercial paper bought.............. $ Other loans............................. - -19.6 + 0.1 - 0.2 +47.5 + 2.4% 0.8 + 3.9 - 64.6 +109.2 + 1.8% place in recent weeks has been remark able chiefly because of a drop to less than one hundred thousand dollars which, considered in relation to the averages in earlier years, represented almost the vanishing point. In the first half of October reserve balances with this bank to the credit of all member banks in the district aver aged 398 millions. This figure, while below the 420 millions attained on the 21st of the month, was substantially in excess of the amounts which banks under the law are required to keep against their deposits. The excess was 158 millions, as the following figures show, or 66 per cent. Philadelphia Federal Reserve District (Averages in millions of dollars) Reporting member Member bank reserve deposits Held Re Ex at reserve quired* cess bank 314 326 346 362 398 154 231 233 235 240 160 95 113 127 158 * Increase in required reserves effective August 16, 1936. The influx of funds within the last four weeks was reflected in the figures of the reporting member banks in a rise of 38 millions in demand de posits, adjusted for cash items in process of collection, and an increase U. S. Government securities........................................ Obligations fully guaranteed by U. S. Gov’t.......... Other securities..................... 9 21 Changes in Four weeks +S 1 148 23 62 2 184 - 1 - 4 One year -$ + 4 8 - 1 + + 1 6 1 13 -$ 4 +$ 10 323 + 7 + 42 97 309 - 4 3 + + 4 21 Total loans and investments............................ $1,178 Reserve with Federal Reserve Bank.......................... 300 -* 4 +S 77 + 60 Balances with other banks. Other assets—net................. 165 87 + - + 114 + 1 3 8 Liabilities Demand deposits—adjusted................................... $ Time deposits........................ U. S. Government deposits Interbank deposits............... 817 279 74 328 +*38 +$ 96 + 3 + 9 - 2 + 47 + 23 + 25 Other liabilities..................... Capital account..................... 22 225 + 7 1 1 i + + 2 2 of 23 millions in interbank balances. The total of the various classes of deposits increased 62 millions to a new peak for recent years of 1,498 millions. This figure was 177 millions or more than 13 per cent higher than a year ago. Outstanding credit of the report ing banks declined 4 millions in the four weeks; funds deposited with the reserve bank increased 60 millions and 7 millions was added to balances with other banks. Investments were un changed in total, as an expansion of 7 millions in holdings of direct obli gations of the United States equaled declines in other types of securities. Variations in loans on securities or real estate, in loans to banks and in open market paper were small, the principal change in loans being a de crease from 188 to 184 millions in the unclassified group which generally is thought to consist largely of accom modation granted to finance the cur rent requirements of commerce and MEMBER BANK RESERVES AND RELATED FACTORS Changes in w eeks ending— Sept. 30 Oct. 7 Oct.‘ 14 Oct. 21 Changes in four weeks — 1 7 +28.3 + 3.7 - 0.6 + 9.1 +10.0 - 0.5 + 1.3 + 3.6 + 0.6 + 0.1 +11.6 +38.8 +28.9 +30.3 +18.5 + 4.4 +12.3 +65.5 Unexpended capital funds of reserve bank........................ + 14 +28.0 + 0.9 + 0.0 + 0.3 +18.7 - 0.6 + 0.1 + + - 4.5 0.3 0.4 0.0 - 2.3 +14.6 - 0.1 + 0.1 + 3.9 +61.6 - 0.2 + 0.2 Total..................................................................................... . +30.3 +18.5 + 4.4 +12.3 +65.5 Philadelphia Federal Reserve District (In millions of dollars) Sources of funds: Uses of funds: industry. The latest figure, while distinctly down from the 1936 peak of 191 millions reached in mid-September, still is 13 millions above a year ago. Loans on securities, other than to brokers and dealers in New York City, now total 169 millions; this represents an increase of only 7 millions in the past year despite the fact that stock prices have scored a notable advance and that corporate bonds also have increased substantially in price. Employment and Payrolls in Pennsylvania (All figures are rounded from original data) Manufacturing Indexes Employment* (Indexes are percentages of the 1923-25 average taken as 100. Total and group indexes are weight ed proportionately.) REPORTING MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS TOTAL LOANS AND INVESTMENTS Sept. 1936— per cent change from Per cent Per cent Sept. change from Sept. change from 1936 1936 index Sept. Aug. index Sept. Aug. 1935 1936 1935 1936 All manufacturing .. 87 Iron, steel and products . 78 Non-ferrous metal prods. 118 Transportation equip.... 68 Textiles and clothing... . 106 Textiles........................... 102 Clothing.......................... 124 Food products................... 109 Stone, clay and glass... . 84 Lumber products............. 66 Chemicals and products. 91 Leather and products. . . 94 Paper and printing.......... 94 Printing.......................... 88 Others: Cigars and tobacco___ 67 Rubber tires, goods. .. 86 Musical instruments. . 57 DEPOSITS 1400 Employe hours t Payrolls* * Figures from 2266 plants. +n +20 +15 +38 + 4 + 3 +19 - 1 + 11 + 7 + 9 - 3 + 3 + 4 +2 +2 +2 +2 +2 +2 +2 +6 +2 - 5 +20 + 7 -0 +1 +3 +2 +2 +2 +2 +6 Sept. Aug. 1935 1936 82 83 124 60 92 90 102 104 75 56 90 87 90 87 +27 +45 +31 +67 + 3 + 3 + « + 6 +30 +17 +25 + 3 + 7 + 7 +i +i +4 -0 -2 -2 -4 +5 +1 +3 +3 +2 +5 +7 +32 +45 +29 +75 + 5 + 4 + 7 + 4 + 1 + 2 + 6 2 _ 3 _ 2 _ 5 +14 _ 1 + 2 + 3 + 4 + 3 + 5 59 90 55 - 4 +65 +16 -5 +5 +5 - 3 +57 +26 _ 5 + 6 + 8 +23 +19 +38 + 8 + 8 t Figures from 2033 plants. General Index Numbers Covering twelve branches of trade and industry LOANS (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) BALANCES AT RESERVE BANK AND OTHER BANKS 1934 General index (weighted)___ 1935 1936 Percentage change—September 1936 from September 1935 City areas* Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Wilmington.......... York....................... Manufacturing Employ ment Wage payments +17 + 4 +11 +30 + 7 + 8 +12 - 2 + 5 - 7 + 5 +17 + 2 +39 +67 +35 +72 + 8 +15 +19 + 4 + 5 - 3 +14 +28 +13 Building permits (value) Debits +165 + 82 +119 +154 + 29 + 20 +403 + 20 + 28 +418 +168 - 75 + 64 Hrl5 -23 rl2 -41 -31 -15 -23 - 6 - 9 *- 9 [-14 H9 t-20 Retail trade sales -10 -43 - 8 -41 -17 h 2 - 8 - 9 -15 - 7 Wilmington.......... York....................... + + + + + + + + + + 0 2 2 4 5 2 3 1 1 4 1 2 5 - 2 + 0 + 8 + 7 + 4 ~ 1 - 1 - 1 - 4 -10 - 0 +1 + 5 - 48 + ii - 23 - 51 - 96 - 27 + 66 - 29 - 46 + 78 +112 - 4 - 19 + 2 - 2 - 7 - 5 +10 +15 + 1 - 2 +12 - 5 — 15 +12 - 2 Sept. 1936 index 118 137 77 120 85 121 172 94 111 113 107 102 106 Payrolls Per cent change from Sept. 1935 Aug. 1936 + 9 +11 + 3 + 1 +24 +20 -IS + 4 + 4 + 6 + 6 + 7 + 8 + 3 + 2 +16 + 2 + 3 + 1 + 1 + 0 + 6 + 1 + 2 - 1 + 0 Sept. 1936 index 158 201 65 208 104 224 173 98 115 109 109 107 109 Per cent change from Sept. 1935 Aug. 1936 +23 +27 - 9 +27 +49 +59 - 7 + 8 + 8 + 6 +12 +12 - 2 + 2 + 1 +11 +11 + 2 + 0 + 1 + 0 + 5 + 0 + 4 + 1 + 2 » INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT +18 September 1936 from August 1936 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre. . . . 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.................. Employment ~ PAYROLLS + 7 + 6 +13 + 1 +16 +31 -23 -53 [-23 [-27 EMPLOYMENT + 7 1932 1933 1934 1935 1936 * 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 ADJUSTED TO* SEASONAL VAWIATIOM Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted for seasonal variation seasonal change in activity. LOCOMOTIVES AND CARS Not adjusted Per cent change Unadjusted indexes reflect merely the actual change which may or may not Sept July Aug. Sept be typical. 1935 1936 1936 1936 Sept. 1936 frc)m Month Year ago ago 1936 from 9 mos. 1935 Sept. July Aug. Sept. 1935 1936 1936 1936 Retail trade Sales Total of all stores.......................... Department................................. Men’s apparel............................ 79 74 72 119 Shoe............................................... 79 Credit............................................ 74 r Stocks of goods 80 70 68 97 68 r 108 80 73 69 129 61r 85 87p 78p 76 120 85 98 66 68 70 73p 53 52 54 56p 60 82 64 66 102 104 109r 114 70 64 68 67 79 78 88 97 + 8 + 7 + 9 - 7 +40 +15 + 10 + 5 + 5 + 0 + 8 + 32 + + + + + + 10 + 5 + 10 + 12 5 + 22 5 3 3 4 1 9 +10 72 + 9 66 +13 60 + H 103 + 5 81 +32 71r 69 56 65 110 75 81 58 52 56 64 62 r 70 64 56 54 88 46 r 81 78p 69p 63 104 87 93 61 48 67 78 60 77 67 51 66 96 r 68 87 76p WOOLENS AND WORSTEDS 71* 123 72 99 Rate of stock turnover + 7* 2.85 3.04 Wholesale trade Sales Total of all lines............................. Boots and shoes......................... Drugs............................................ Dry goods.................................... Electrical supplies..................... 78 44 92 36 r 64 115r Hardware..................................... 50 r Jewelry......................................... 51 Paper............................................ 74 89 87 86p 43 63 53 99 - 99 100 48 4b 44p 100 86 78p 121 122r 119 52 56 63 52 47 70 75 74 79 - 1 -16 +1 - 3 - 9 - 2 +13 +49 + 7 + + + + + + + + + 11 20 9 20 23 4 25 38 8 + 9 88 +14 64 + 9 95 +16 48 r +16 76 + 3 128r +14 53 r +19 63 +11 75 82 82 98p 35 71 76 93 92 103 37 42 58p 82 71 94p 122 120r 132 50 50 66 35 41 87 71 70 81 69 68 70p 29 27 30 115 109 r 110 38 39 106 100 106p 72 75 78 70 72 r 73 51 55 55 63 62 61 + + + + + + + - + 10 + 9 + 2 + 0 + 21 + 19 + 4 + 2 + 8 65 28 111 43 r 93 65 69 r 59 58 68 69 72p 29 29 30 114 112r 113 38 42 43p 106 107 113p 66 69 78 70 71r 71 59 61 60 63 63 62 Stocks of goods 63 27 108 39 r 87 65 70 r 54 3 9 1 1 6 4 1 1 1 Rate of stock turnover 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............................................ 33 61 53 53 80 9 58 20 142 97 69 45 102 125 121 30 Brick...................................................... 41 Lumber and products....................... 20 + 5* 61 85 75 110 94 18 75 35 236 105r 74 58 150 126 150 57 52 r 27 58 94 81 125 95 18 66 36 243 97 67 56 133 123 138 56 52 30 83 89 58p 98 68 91 157 112p 91 88 159p 123 * Computed from data unadjusted for seasonal variation. Page, Eight 4.47 PAPER AND WOOD PULP 200 kc 175------------------------ 56 89 78r 123 94 15 69 35 230 93 72 55 124 120 154 54 52 29 Slaughtering, meat packing............ 68 88 89 Sugar refining...................................... 49 168 69 Canning and preserving................... 48 72 62 Cigars.................................................... 91 97 95 Paper and wood pulp........................ 61 67 69 r Printing and publishing................... 87 87 88 r Shoes...................................................... 137 161 155 Leather, goat and kid....................... 116 123 115 Explosives............................................ 69 83 81 Paints and varnishes......................... 72 91 82 r Petroleum products........................... 153 150 151 Coke, by-product............................... 91 113 118 4.27 LUMBER PRODUCTS - 6 + 10 + 9 +14 + 1 - 4 -11 +1 + 3 - 7 - 9 - 3 -11 - 3 - 8 - 2 0 + 8 + 2* - 7 +29 - 7 + 3 - 1 + 3 + 1 - 3 +12 + 8 + 5 + 5 + 76 + 55 + 54 + 136 + 19 +105 + 15 + 78 + 70 + 0 — 2 + 26 + 30 — 2 + 14 + 88 + 27 + 44 + 1* + 21 + 81 + 21 + 8 + 12 + 4 + 14 4 + 32 + 23 + 4 + 35 +78 +40 +32 +83 +15 +34 +45 +64 +96 - 4 - 1 +21 +10 - 6 +10 +35 +36 +29 + 3* +17 +29 +ii +10 +11 + 3 + 2 + 1 +11 +14 + 8 +29 31 58 54 48 88 7 55 19 135 97 76 42 112 125 121 35 42 21 89 70 42 60 106 61 86 157 121 69 68 155 87 p—Preliminary. 51 81 74 r 110 99 15 66 35 224 91 68 48 113 98 128 63 50 32 90 79 171 58 105 65 84 150 109 81 84 151 111 54 87 73r 106 104 15 70 36 233 lOlr 76 52 137 110 139 72 54 r 30 88 r 77 59 70 101 69 r 86 166 111 81 83 152 115 54 89 82 114 104 15 63 34 230 97 74 53 147 123 138 66 53 31 90 83 77 80p 114 68 90 179 116p 91 84 161p 118 r—Revised. 125 / /'JV\ -At\j Vf V IOO +--------------------75 ----------------------50 „ LEATHER-GOAT AND KID A'a/Aa t Aa. P— N/ v PETROLEUM REFINING v-A'“ Ww' — 934 1935
@FedFRASER