The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW 'm FEDERAL RESERVE BANK OF PHILADELPHIA aftgpigiisg NOVEMBER 2, 1942 FURTHER expansion in the output of durable goods and declines in the production of con sumers’ goods reflect the continued adjustment of this district to the requirements of war. In some cases industries have not expanded as much as usual for this time of the year pri marily because of the high levels that have been maintained through normally slack seasons. General indexes often fail to reflect the changes that are occurring in particular lines. In the case of building contracts a very high level was reached in September, but this was due mainly to heavy awards for industrial structures; con tracts for small dwellings have declined sharply and were only 7 per cent of the total, as against more than one-third a year earlier. Rising industrial payrolls continue to be re flected in active consumer purchases. Retail sales, however, have not shown correspondingly large gains over 1941, as wage earners increase their savings and reduce instalment debt. In ventories in retail lines are substantially larger than they were last fall, but at wholesale estab lishments stocks of goods have declined some what. On October 3 the President, acting under Congressional authority, issued a general order to effect the stabilization of prices, wages, and salaries affecting the cost of living. At the same time he appointed a director of the newly created Office of Economic Stabilization. The need for action is revealed in- the changes that had occurred in prices and wages since the out break of war in Europe. For the country as a whole factory employment expanded 46 per cent, payrolls 135 per cent, and average hourly wages 36 per cent in the three years of war. The general index of wholesale prices rose 33 per cent, and prices of staple commodities which were uncontrolled advanced about 89 per cent. The cost of living increased 19 per cent over the same period. Such disparities as well as the general increase called for action. Bank investments have been sharply increased by allotments of new Treasury securities, while loans at reporting institutions in this district have been tending downward since the spring. The Federal Reserve Bank of Philadelphia took another step to assist the war-financing program by reducing its discount rates on three cate gories of loans. Manufacturing. The distinction between es sential and nonessential goods is increasingly sharp in the market for manufactures. Heavy requirements of the armed forces are main taining an active market for the factory prod ucts of this district, and shipments are going forward in increasing volume. Demand has fallen off somewhat in civilian lines, reflecting the inability of producers to supply goods in normal volumes and increasing uncertainties in shipment dates. The output of durable goods, very largely for war purposes, continues high and further expansion depends largely upon the completion of conversion and construction programs and the ability to secure trained workers and re quisite materials. This high rate of activity extends also to some of the nondurable lines, such as the textile mills which have been work ing on uniform cloth and other supplies for the Page One INDUSTRIAL AND TRADE ACTIVITY FACTORY PAYROLLS THIRD FEDERAL RESERVE DISTRICT PENNSYLVANIA PERCENT PERCENT CAPITAL GOODS PRODUCTION CONSUMERS’ GOODS 1938 193 9 1940 1941 1942 1943 Government. But in other directions the re strictions of the war economy and the scarcity of labor have resulted in curtailed production schedules. Unfilled orders for heavy goods con tinue large, but backlogs have declined some what in the case of products primarily for civilian consumption. Employment and payrolls in Pennsylvania factories increased further from August to September, but the growth in working forces has been slight in recent months. The number employed reached a new peak of 1,188,000, and the volume of wage payments a record high estimated at $42,800,000 a week. Gains over a year ago amounted to 4 and 23 per cent re spectively. Working time declined slightly in the month but showed an increase of 10 per cent over a year ago. In the heavy industries employment increased somewhat further in September and wage dis bursements rose substantially to a level of 32 per cent above 1941. Small declines were reported by establishments making lighter products, where the number employed was less than a year earlier and the volume of payrolls only 5 per cent larger. 937 1938 1939 1942 The output of factory products in this dis trict rose 2 per cent in September to a level 19 per cent above a year ago. The gain in the month was due to a much higher rate of activity in durable goods lines, where production in creased 9 per cent on a seasonally adjusted basis and was 47 per cent greater than a year earlier. A further decline of 5 per cent oc curred in September at plants making con sumers’ goods, where output was 7 per cent less than in 1941. Coal and other fuels. The demand for fuels continues exceptionally active. Dealers have been accumulating reserves of anthracite; war plants and railroads have been heavy pur chasers of bituminous coal; and the peak rate of operations in the iron and steel industry has sustained the demand for coke. Growing short ages of labor make it increasingly difficult to maintain the production of solid fuels at the high levels prevailing for several months. Transportation difficulties limiting the supply of fuel oil necessitate a reduction in consumption for heating purposes this season in thirty Eastern and Middle Western states. Output of anthracite increased less than sea sonally in September, but it was the largest for the month since 1929. Shipments increased for the third successive month. In the first nine months both output and shipments were ap preciably larger than a year ago. Average hourly earnings of factory workers in Pennsylvania continued to advance in Sep tember, reaching a new high of 94i/2 cents, or 121/z cents an hour more than in 1941. The average number of hours worked per week was 42, compared with a twelve-year peak of 42i/2 Production of' bituminous coal in Pennsyl in August, and 40 a year ago. Weekly income vania also expanded less than usual in Septem increased in September to an average of $39.45, ber. The volume of coal mined was about the the highest in records back through 1923, and same as a year earlier. Shipments expanded $6.64 more than in the same month last year- sharply to the highest level in thirteen years. Digitized Page for FRASER Tivo BUILDING CONTRACTS TEXTILES AND LEATHER THIRD FEDERAL RESERVE DISTRICT EMPLOYEE - HOURS IN PENNSYLVANIA MILLIONS TEXTILES AND , CLOTHING FACTORY AND COMMERCIAL RESIDENTIAL LEATHER PRODUCTS 1938 1939 1940 194 I 1942 Production in the first nine months was 15 per cent and shipments 17 per cent greater than in 1941. Building. Activity in the building industry in this district increased in September to ap proximately the peak levels prevailing in the early summer. Operations against contracts placed to meet urgent war requirements have continued to expand, offsetting further declines in the case of many less essential projects. Contracts awarded in September approxi mating §44 million have been exceeded in only one other month in the past twelve years. Place ments were 70 per cent above the August level and 17 per cent greater than a year ago. Large increases were reported in September for all classes of construction except one and twofamily houses, which declined 55 per cent and were the smallest for that month since 1935. Contracts for factories rose to an all-time high of $25 million, accounting for nearly 60 per cent of the total. Awards of building contracts in the first nine months increased 6 per cent over 1941 and were the largest for the period in recent years. Con tracts for factories and public works and utili ties were chiefly responsible for the increase. Awards for residences, commercial structures, and educational buildings, which contributed heavily to contract totals last year, registered declines ranging from 38 to 66 per cent. Agriculture. The growing season for crops in many parts of this district ended with killing frosts in the last week of September. Subse quently, weather conditions were generally 1937 1938 1939 1940 1941 1942 Source: r W lW<C Carp. favorable for harvesting and other farm work, but the acute shortage of labor continued to delay operations in many sections. Yields of fruits and vegetables generally have been larger than in 1941, and in many cases well above the averages of other recent years. Insect damage, plant disease and unfavorable weather over part of the season curtailed the production of several leading field crops. The market for agricultural commodities has continued exceptionally active. Expanding military requirements have accounted for heavy purchases of livestock products and vegetables suitable for canning. Increased sales of farm produce generally also reflect improvement in the demand from civilians with larger spend able incomes. Farm cash income in Pennsylvania, New Jersey, and Delaware approximated $66i/2 million in August, or 39 per cent more than a year earlier. In the first eight months, the income from marketings exceeded $400 million as against slightly less than $300 million in the same period of 1941. Trade. Retail sales in this district continued to expand during September and in most lines were above the dollar volume of a year ago. Increases in the month at department, women’s apparel, and shoe stores were less than usual, but a sharp rise in sales of men’s apparel sub stantially exceeded seasonal expectations. Further gains were reported in early October. Gains in department store sales over last year are being sustained by much heavier sales for Page Three DEPARTMENT STORE COLLECTIONS PERCENT DEPOSITS AT MEMBER BANKS THIRD FEDERAL RESERVE DISTRICT hatio of collections to outstandings 1942 CHARGE ACCOUNTS third federal reserve district MILLIONS 2000 PHILADELPHIA BANKS \ INSTALMENT ACCOUNTS COUNTRY BANKS 1942 JAN FEB. MAR APR. MAY JUNE JULY AUG SEPT OCT NOV. 19 3 6 1940 194 1 1942 cash, which in September were nearly one-half Shipments of freight by rail and motor truck of the total. Charge account sales declined increased from August to September. The ton somewhat in the twelve months and those made nage carried by the railroads continued unusu on the instalment plan were more than one- ally heavy, although the number of cars loaded third smaller. Collections on both charge and showed a smaller than seasonal gain in the instalment business have been substantially month and was less than in September 1941. more rapid than last year. In the case of fur Total loadings in the first nine months were 2 niture stores, sales increased slightly in Sep per cent larger than a year ago. tember, but were less than in September, 1941, increased cash volume being more than offset Banking conditions. Discount rates have been by smaller distribution on an instalment basis. reduced by the Federal Reserve Banks in recent weeks. Effective October 17, the Fed Inventories at retail establishments in Sep eral Reserve Bank of Philadelphia reduced the tember showed an unusually small increase for rate on notes of member banks secured by the second successive month. They were sub United States Government obligations having stantially larger than a year ago in all reporting one year or less to run to call or maturity date lines except shoes, and in the case of reporting from 1 per cent to i/2 per cent; on advances to department stores were 85 per cent larger in individuals, partnerships, or corporations other dollars than in September 1939, the first month than banks under the last paragraph of Section of the war. Merchandise on order by depart 13 of the Federal Reserve Act the rate was ment stores has been increasing slowly since lowered from 2i/2 to 2 per cent, and on advances June, although outstanding commitments have to members under Section 10(b) from 2 to li/2 continued below the high levels prevailing in per cent. All Reserve Banks continue to pur the third quarter of 1941, when anticipatory chase Treasury bills at a rate of % per cent per buying was especially heavy. annum, and to give selling banks the option of taking them back at a like rate before maturity. Wholesale trade sales expanded 12 per cent Large amounts of Treasury bills have been in September, reflecting gains in all lines but acquired by member banks in this district, but paper. Total sales remained somewhat smaller relatively few have been sold by them to this than a year earlier, but in the first nine months Bank. Member bank borrowing also continues they were 15 per cent above the 1941 level. very light, as banks for the most part have re Inventories in the aggregate decreased slightly serves substantially in excess of requirements in the month and were about 5 per cent less and heavy balances with correspondent insti than a year ago. Stocks of electrical supplies, tutions. In the third week of October the re hardware, and jewelry continued sharply serves of members in Philadelphia are estimated smaller than in 1941, while substantial increases to have been nearly 20 per cent above require were reported in the case of dry goods and ments, and at country banks 40 per cent or more shoes. in excess. Page Four The combined reserves of all member banks in the district declined $15 million to $616 mil lion in the four weeks ended October 21. Re serves were drawn upon actively to make large cash payments on new Government securities, reflected in net Treasury receipts of $89 million, and money in circulation continued to expand throughout the period. As shown in the table given later in this report, the principal offset was a substantial gain in commercial and finan cial transactions with other districts. offerings were made in October. They com prised Treasury bonds and notes totaling about $4 billion, and $2 billion in % per cent one-year certificates of indebtedness, the latter designed principally to furnish funds to retire $1.5 bil lion of certificates due November 1. In this dis trict subscriptions to 114 per cent notes matur ing December 1946 totaled $93 million and to 2 per cent bonds of 1950-52, $102 million; these amounts were 4.4 and 5.2 per cent respectively of national totals. Subscriptions to the cer tificates totaled $3.1 billion in the country as a whole and $96 million in this district. Holdings of Government securities by the reporting member banks have increased more than one-quarter billion dollars since early July, Substantial sales of the new series tax savings raising investment portfolios to $1,188 million, notes were made in October. These notes pro or 71 per cent of their total earning assets. Al vide an attractive means for the accumulation lotments of new offerings largely explain the of funds against the heavy income taxes due increase of $109 million during the four latest next year. Notes of Series C may be used for weeks in direct Governments held. Meanwhile tax payments and as an investment for short loans continued to shrink as repayments on term idle funds; they are redeemable at par commercial advances exceeded new accommo and accrued interest by holders other than dation and the volume of consumer credit out banks accepting demand deposits, if not used standing contracted. Commercial loans de clined $11 million to $260 million, and are in payment of taxes. nearly one-sixth smaller than at the peak last Weekly offerings of Treasury bills were raised March, reflecting in part reduced working capi tal requirements in nonessential lines as war from $400 to $500 million, beginning with the time restrictions bear more heavily on the issue dated October 21. The placement rate of about 0.37 per cent on the last two issues of the economy. _ month was much the. same as on earlier offer Deposits at the reporting banks reached a ings. In the Third Federal Reserve District over new peak at $2,034 million on October 21. In 60 banks on the average have been submitting terbank deposits, with reciprocal balances re tenders each week, as shown below: ported net, and state and local government bal Bids on Treasury bills ances have been reduced somewhat since the Third F. R. District Banks Amount latter part of September. But Federal Govern Issue dated— ment deposits rose sharply as a result of exten Sept. 30 ................... . 54 $21,500,000 sive credit payments on Treasury securities, and Oct. 7 ....................... . 73 25,400,000 gains also were recorded in the balances of in Oct. 14....................... . 62 19,800,000 dividuals and business enterprises to levels ma Oct. 21....................... . 63 35,700,000 terially larger than a year ago. Oct. 28....................... . 65 26,100,000 Treasury financing. Revised estimates indi cate that expenditures of the Federal Govern ment in the fiscal year 1942-43 will be larger than previously anticipated. War costs, includ ing those of Government corporations, are ex pected to reach $78 billion; in addition nearly $1.9 billion is required for interest on the debt and about $4 billion for other budget expenses. Borrowing is expected to exceed $60 billion. The public debt increased $14 billion in the quarter ended September 30 to $91 billion, in cluding guaranteed securities. Three major Holdings of Treasury bills by weekly reporting banks in this district advanced to $121 million on October 21 from $1 million a year earlier. Nearly $34 million of War Savings bonds were sold in the first 22 days of October, ac cording to reports from the Federal Reserve Bank and issuing agencies in this district other than postoffices. Sales of Series F and G were about the same as in the corresponding period of September, but those of Series E advanced to $20.5 million from $17.9 million, reflecting the spreading use of the payroll savings plan. Page Five BUSINESS STATISTICS Production Employment and Income Philadelphia Federal Reserve District in Pennsylvania Adjusted for seasonal variation Not adjusted Industry, Trade and Service Per cent c iange Indexes: 1923-5 - 100 INDUSTRIAL PRODUCTION MANUFACTURING............... Durable goods............................ Consumers’ goods................... Metal products.................... . Textile products......................... Transportation equipment. . . Pood products............................ Tobacco and products............. Building materials.................. Chemicals and products.......... Leather and products.............. Paper and printing................... Individual lines Pig iron.......................................... Steel.............................................. Silk manufactures................... Woolens 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 . . . , Paints and varnishes................ Coke, by-product....................... GOAT, MINING..................... Anthracite........................... Bituminous....................... CRUDE OIL....................... ELEC. POWER—OUTPUT . . Sales, total................................. Sales to industries..................... BUILDING CONTRACTS TOTAL AWARDSf..................... Residential!................................. Nonresidentialf.......................... Public works and utilities!... Sept. Aug. 1942 1942 139p 136 140p 136 224p 205 84p 89 160 153r 66p 75 587 523r 104p 101 109 111 49 48 141 135 90p 96 88 87 r Sept. 1942 from Sept 1941 117r 117r 153 91r 145 78r 273 r 92r 111 54 152 127 93 1942 from 9 mos. 1941 Sept. Aug. Sept. 1942 1942 1941 Mo. ago Year ago + 2 + 3 + 9 - 5 + 5 -11 +12 + 3 - 2 + 2 + 5 - 6 0 + 19 + 20 + 47 - 7 + ii - 14 +115 + 14 - 2 - 8 + 5 + 5 + 4 - 28 + 8 - 51 - 22 - 10 - 4 - 6 - 16 + 15* + i +133 + 15 - 1 - 14 - 4 - 18 - 43 - 13 + 7 + 1 + 1 0 + 8 + 10 + 10 + 12 + 7 + + + + + + 7 15 15 10 11 15 - 19 - 66 + 6 + 14 + 10 120 - 31 39 + 20 + 65 | 195 184 119 135 75 54p 63 53p 69 144 71 67 27 126r 113 127 r 129 83r 72 57 75 67 58r 52 108 93 88 164r 160 67 74 66 71 28 32 96 70 119p 109 77 90 115 65p 90 166 85p 84p 95 465 378 380 280 97 61 116 111 78 89 r 120 73 84 162 101 101 lOlr 467 378 381 281 95 30 103r 110 90 93 140 115r 104 154 84 r 83 r 95r 431 344 345 249 - 5 + 7 - 9 - 5 - 6 + 2 -26 -12 + 7 + 1 - 3 + 5* - 1 +15 + 2 - 2 - 1 0 - 4 -11 + 7 + 2 -16 -17 - 6 - 1 0 0 0 124 33 208 202 118 38 175 245 153 96 196 178 + 6 -14 +19 -17 - 7 - 30 - 5 ♦Unadjusted for seasonal variation. !3-month moving daily average centered at 3rd month. + 20 + 21 + 46 - 3 + 17 - 12 +116 + 9 + 12 + 4 - 3 - 7 0 139p 135 141p 137 118r 118 162 161 67p 71 556 513 r 115p 104 127 119 54 55 140 135 99p 98 87 85 146 79 258 lOlr 129 58 150 139 92 + 12 + 10 - 1 - 15 + 4 - 51 -13 + i + 5 + 4 - 2 112 lllr 106 129 129r 123 75 72 80 58p 57 81 60 55r 61 53p 116 49 69 88 81 144 152 r 160 84 87 83 68 72 28 33 30 0 - 17 + 20 + 12 0 0 - 10 - 2 - 7 + 7 98 60 161p 126 77 89 131 68p 85 159 83p 81p 97 465 371 376 297 96 26 141r 128 90 92 87 160 128 119 70 86 99 158 148 82 r 77 80 r 75 95 r 97r 467 431 359 337 362 342 289 261 84 52 134 119 114 43 161 213 148 113 185 162 Allentown............ Altoona................ Harrisburg.......... Johnstown........... Lancaster............ Philadelphia.... Reading................ Scranton.............. Wilkes-Barre___ Williamsport.... Wilmington......... York...................... Employment Aug. 1942 Sept. 1941 - 2 - 5 +1 +1 + 2 + 1 - 1 0 — 1 +1 - 1 + 1 + 6 + 5 - 5 + 2 - 8 + 7 +16 - 6 - 4 — 10 +16 + 4 +18 - 2 Payrolls Building permits value Aug. 1942 Sept. 1941 Aug. 1942 Sept. 1941 Aug. 1942 Sept. 1941 0 8 2 5 2 4 3 2 0 1 7 5 6 +20 + 6 +23 + 3 +27 +47 - 8 b 7 b 5 b49 -22 - -56 H-24 -55 -18 -71 +21 -41 -84 +20 ;-24 - 83 - 86 - 91 - 72 - 81 - 84 - 64 - 99 +156 - 79 - 90 +255 - 91 +13 + 7 +22 +10 +20 +32 + 8 +29 +24 +29 + 8 -11 +20 -11 +13 + 5 +16 - 4 + 3 + 6 0 - 4 + 7 + 3 + 7 + 10 -10 +32 +25 +10 0 +14 - 1 + 4 -10 - 6 + 7 + 2 + 6 +42 -15 - 3 + 1 +17 +10 -28 -43 -53 ♦Area not restricted to the corporate limits of cities given here. Page Six Debits Sept. 1941 + + + - 0 0 0 1 2 4 1 2 + - 2 i 1 1 276 396 88 309 126 357 199 134 146 141 137 158 141 - 1 + 4 - 6 - 8 -16 - 8 +1 - 4 -10 -11 - 8 - 8 -10 + 2 +1 + 5 + 2 + 8 0 + 1 + 1 + 7 0 + 3 - 1 0 +16 +23 + 2 ~ 1 - 2 +10 + 6 - 2 - 3 + 6 - 4 - 6 Manufacturing Payrolls* Employment* Per cent Per cent Sept. change from Sept. change from 1942 1942 index Aug. Sept. index Aug. Sept. 1942 1941 1942 1941 Indexes: 1923-5 = 100 TOTAL........................................ Iron, steel and products... . Nonferrous metal products. Transportation equipment. Textiles and clothing............. Textiles................................... Clothing................................. Food products........................ Stone, clay and glass........... Lumber products.................. Chemicals and products . .. Leather and products......... Paper and printing.............. Printing................................... Others: Cigars and tobacco............ Rubber tires, goods............ Musical instruments......... 115 125 191 121 89 80 122 123 93 53 118 91 98 90 69 107 55 - 1 - 4 +1 - 3 +1 + 2 + 4 + 8 + 7 +28 - 8 - 9 - 6 + 4 - 5 -23 + 4 - 8 - 7 - 3 162 229 333 195 105 97 145 156 117 67 174 114 124 110 +1 + 2 - 3 +1 - 5 - 5 - 4 + 4 - 2 - 2 + 4 - 3 + 4 + 5 +23 +25 +28 +70 + 2 + 3 - 1 +17 + 3 -13 + 19 + 2 + 1 + 2 - 1 + s - 2 - 4 +10 -29 76 167 72 - 1 - 3 - 6 + 5 +30 -16 0 0 0 +1 - 2 - 2 0 ♦Figures from 2856 plants. Factory workers Averages September 1942 and per cent change from year ago Retail sales 133 178 62 98 58 119 143 103 107 114 97 111 100 Hours and Wages Aug. 1942 + + + + + GENERAL INDEX............ Manufacturing........................ Anthracite mining................ Bituminous coal mining.. . . Building and construction . Quar. and nonmet. mining. Crude petroleum prod......... Public utilities........................ Retail trade............................. Wholesale trade..................... 1 lotels........................................ Laundries................................. Dyeing and cleaning............ p—Preliminary. r—Revised. Local Business Conditions* Percentage change— September 1942 from month and year ago Employment Payrolls Per cent Per cent change from Sept. Sept. change from 1942 1942 index Aug. Sept. index Aug. Sept 1942 1941 1942 1941 Indexes: 1932 = 100 + 3 +54 + 6 +26 TOTAL.............................. Iron, steel and prod.... Nonfer. metal prod.. . . Transportation equip.. Textiles and clothing. . Textiles.......................... Clothing........................ Food products.............. Stone, clay and glass. . Lumber products......... Chemicals and prod.. . Leather and prod......... Puper and printing.. . . Printing......................... Others: Cigars and tobacco... Rubber tires, goods. . Musical instruments . Weekly working time* Hourly earnings* Aver age Ch'ge Aver Ch’ge hours age 42.1 43.4 42.2 46.8 36.4 36.8 35.3 41.9 36.9 41.6 39.7 37.8 39.8 37.8 37.4 39.4 42.5 ♦Figures from 2667 plants. Weekly earnings! Aver age Ch’ge 4 5 2 9 2 1 3 5 1 0 2 2 2 0 5.945 1.025 .874 1.098 .656 .680 .597 .692 . 847 .649 .989 . 664 .822 .939 +15 + 11 +22 4-20 +13 4" 14 +10 + 9 + 8 + 10 + 11 + 12 + 10 + 3 539.45 44.46 36.84 51.31 23.66 25.02 20.94 29.12 31.14 26.74 38.93 25.11 34.14 38.10 +20 +17 +24 +30 +10 +12 + 6 +14 + 7 +10 +13 +10 + 8 + 4 — 2 + 1 + 2 .533 .882 .806 + 12 + 17 +15 19.92 34.76 34.27 +10 + 18 +17 + F + + — — — + — + — — tFigures from 2856 plants. Distribution and Prices Wholesale trade Unadjusted for seasonal variation Sales Total of all lines....................... Boots and shoes..................... Drugs.......................................... Dry goods................................. Electrical supplies................ Groceries................................... Hardware................................. Jewelry...................................... Paper.......................................... Inventories Paper.......................................... Source: Adjusted for seasonal variation1) +12 + 2 +10 +23 +15 + 7 + 4 +40 - 1 Indexes: +15 +17 +11 +36 -12 +13 +21 + 7 +38 - 3 +24 +10 -21 +1 -18 + 6 -24 — 5 - 1 — 2 0 -14 + 5 - 4 - 4 - 2 Not adjusted Per cent change 1935-1939 = 100 Sept. Aug. Sept. 1942 1942 1941 RETAIL TRADE Sales Department stores—District....................... Philadelphia.............. Women’s apparel............................................. Men’s apparel..................................................... Shoe........................................................................ $1942 from 9 Month Year mos. 1941 ago ago Sept. 1942 fro m 133 132 118 127 143 152 152 J32 114 205 125 124 120 123 120 -13 -13 -11 +12 -30 + 6 + 6 - 2 174p 176 151 104 195 199 174 109 132 123 128 106 -11 -12 -13 - 5 +32 131 122 73 137 193 205 129 117 115 136r 128r 76r 150 179 217 132 98 111 138 133 107 145 167 194 159 115 94 - 4 - 4 - 4 - 8 + 8 - 6 - 2 +20 + 4 - 5 - 8 -31 - 5 + 15 + 5 -19 + 2 +23 88 83 128 + 6 + 8* + 16* +14* +19* - 6 +12 +14 + 9 +12 +24 Sept. Aug. Sept. 11942 ,1942 .1941; 143 143 137 115 163 112 108 105 86 123 134 134 139 111 136 185* 177 112 177 177 169 111 139 130 149 115 + 2 - 2 -17 + 9 + 13 + 9 + 1 0 +11 148 139 77 143 308 197 138 119 137 144 134 76 144 312 191 138 115 115 155 151 112 150 267 186 170 117 111 -31 - 9 71 70 103 +12* +20* + 8* 127 +14* 133 117r 115 114 110 -41* — 10* + 9 —33* —55* + 6 42 21 137 81 27 131 +20 +n +18 Inventories —34 — 8 -23 —21 + 6 +18 - 2 U. S. Department of Commerce. Prices Basic commodities (Aug. 1939 = 100) . . Wholesale (1926 = 100)............ Farm............................ Food.............................. Other............................ Living costs (1935-1939 = 100).. United States............ Philadelphia.............. Food........................... Clothing.................... Rent............................ Fuels........................... Housefurmshings. . Other.......................... Source: Per cent change 1942 from 9 Month Year mos. 1941 ago ago Sept. 1942 from Per cent change from Sept. Month Year 1939 ago ago 168 +1 + 8 +68 100 108 102 95 0 + 2 + 2 0 + 8 + 18 + 14 + 4 +33 +77 +52 + 19 118 117 124 126 107 104 122 113 0 0 0 0 0 0 0 + 1 + 9 + 10 + 15 + 14 + i +1 + 9 + 7 +19 + 19 +33 +27 + 4 + 7 +22 + 12 FREIGHT-CAR LOADINGS Total................................................ Merchandise and miscellaneous.................. Merchandise—l.c.l............................................ Coal.......................................................... Ore............................................................ Coke............................................. Forest products....................... Grain and products.......................................... Livestock........................................................... MISCELLANEOUS Life insurance sales.......................................... Hotels—(1934 = 100) Occupancy ................................................. Business liquidations Check payments................................................. U. S. Bureau of Labor Statistics. ♦Computed from unadjusted data. 151 161 138 48 25 143 r—Revised. p—Preliminary. BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Changes in— Reporting member (000,000’s omitted) 21, 1942 Four weeks One year -$ 11 -$ 43 1 - 16 2 1 + i 4 Other loans................................. - 6 - Total loans............................... $ 479 -$ 19 -$ 91 +$109 +$448 4 - 32 4 - 22 Total investments................. $1133 +$10.1 +$394 +$ 82 +$303 - 16 - 170 - 5 - * 10 Liabilities Demand deposits, adjusted. $1133 Time deposits............................ 161 U. S. Government deposits . . 73 Interbank deposits.................. 367 +$ 24 +$166 2 - 95 + 53 + 52 - 14 Other liabilities........................ Capital account........................ + 14 219 1 i + Oct. 7 Oct. 14 Oct. 21 weeks + 3.9 +25.2 -76.3 - 1.2 + 8.9 +29.3 - 1.2 +28.6 +23.8 + 3.4 +13.7 -65.8 + 4.9 +76.4 -89.0 -47.2 +37.0 +51.2 -48.7 “Other deposits” at Reserve Bank........................................ + 5.6 —40.3 -12.3 - 0.2 + 4.9 +34.2 - 2.0 - 0.1 + 68 +40.0 + 4.7 - 0.3 + 3.5 -48.6 - 3.4 - 0.2 +20.8 -14.7 -13.0 - 0.8 Total................................................................................................ -47.2 +37.0 +51.2 -48.7 - 7.7 Uses of funds: 27 Government securities.......... $ 878 Obligations fully guar’teed . . 64 Other securities........................ 246 Total loans & investments. $1667 Reserve with F. R. Bank. . . 404 27 Balances with other banks . . 103 66 Sept. 30 Sources of funds: Assets Commercial loans.................... $ 260 Open market paper................ 28 26 Other loans to carry secur.. . 32 47 86 Changes Changes in weeks ended— Philadelphia Federal Reserve District (Millions of dollars) 1 i Member bank reserves (Daily averages; dollar figures in millions) Held Required Excess Ratio of excess to re quired Federal Reserve Bank of Phila. (Dollar figures in millions) Four weeks 1.1 0 5.2 318.6 +$ 0.7 0 + 0.1 + 66.8 +$ +$67.6 + 27.5 - 14.7 + 10.8 - 3.7 - 13.0 - 64.7 - 4.7% +$149.3M + 260.9 - 152.0 - 23.8 - 39.6 3.6 - 115.0 - 10.2% Bills discounted.... $ 1941: Oct. 1-15.. $576.1 1942: Sept. 1-15.. 424.5 Sept. 16-30.. 407.2 Oct. 1-15.. 388.2 $264.6 $311.5 324.3 100.2 325.7 81.5 324.0 64.2 118% 31 ” 25 ” 20 ” Country banks 1941: Oct. 1-15.. $221.8 $113.5 $108.3 1942: Sept. 1-15.. 229.7 156.7 73.0 Sept. 16-30.. 226.4 158.7 67.7 Oct. 1-15.. 233.9 162.5 71.4 95% 47” 43” 44 ” Industrial advances. U. S. securities......... Changes in— Oct. 21, 1942 $324.9 Note circulation.. . . 770.4 Member bk. deposits 615.6 U. S. general account 41.3 Foreign deposits___ 69.8 Other deposits.......... 9.4 1196.6 Reserve ratio............ 79.4% One year 1.0 0 + 1.7 + 146.6 ♦Reciprocal bank balances now reported net. Page Seven National Summary of Business Conditions INDUSTRIAL Industrial activity expanded further in September and the first half of October. Prices of uncontrolled commodities continued to advance in September. Early in October an Office of Economic Stabilization was established with a view to more effective control of prices and wages affecting the cost of living. PRODUCTION Federal Reserve monthly index of physical volume of production, adjusted for seasonal variation, 1935-39 average =100- Latent figures shown are for September 1942. FREIGHT-CAR LOADINGS Federal Reserve monthly index of total load ings of revenue freight, adjusted for seasonal variation, 1935-39 average =100. Subgroups shown are expressed in terms of points in the total index. Latest figures shown are for September 1942. COST OF LIVING Production. Industrial production increased more than seasonally in September and the Board’s adjusted index rose 2 points to 185 per cent of the 1935-1939 average. Armament production continued to advance. Steel production was maintained at a high level during September and then increased during October, reaching 101 per cent of rated capacity in the third week of the month. Cotton consumption continued at a high rate and output of manufactured food prod ucts rose more than seasonally owing chiefly to increased activity in the meat packing and canning industries. Coal production, which had been maintained in large volume during the summer months, did not show the usual sharp seasonal rise in September and the first half of October. Output of crude petroleum showed little change following a considerable increase in August. Value of construction contracts awarded in September was about the same as in August, according to reports of the F. W. Dodge Corporation. As in other recent months, awards were mainly for publicly-financed work which, in Sep tember, amounted to over 90 per cent of the total. Contracts for manufacturing buildings reached the highest total yet re ported, and increased awards for defense housing raised the total for residential building by about one-fourth despite a decline in privately-financed work. Awards for public works and utilities and for commercial buildings dropped substantially. Distribution. Department store sales, which had been unusually large in Aug ust, showed somewhat less than the usual sharp seasonal rise during September. In the first half of October sales were sustained near the high level prevailing at the beginning of the month. Variety store sales increased seasonally from August to September, while sales in small towns and rural areas rose by more than the usual seasonal amount. Railroad freight-car loadings increased further in September and the first half of October. The rise was small for this time of year, however, owing mainly to the fact that shipments of many commodities, particularly coal, had been maintained at unusually high levels during the summer months. Commodity prices. Prices of uncontrolled commodities advanced further in September. During the first half of October, after passage of an amendment to the Price Control Act of 1942, more widespread controls were announced. Maximum prices at the highest levels reached around the end of September were established for butter, cheese, eggs, and various other foods. These items constitute nearly one-third of the food budget and now the proportion of the total under control is about 90 per cent. Another action directed residential rents throughout the country to be limited to the levels of March 1, .1942, whereever rent control procedures were not already in effect. Agriculture. The October 1 official crop report confirmed earlier prospects that unusually heavy crop yields were in sight. The Department of Agriculture pointed out, however, that, as the harvest progresses under difficulties, par ticularly as to labor supply, farmers are showing less assurance that it can be completed in season. Record crops of grain, hay, oilseeds, sugar, vegetables, and probably fruits are still likely. Bureau of Labor Statistics’ indexes, 1935-39 average =100. Fifteenth of month figures. Last month in each calendar quarter through September 1940, monthly thereafter. Latest figures shown are for August 1942. EMBER BANK RESERVES 16 ( WWW — 'A r* =VT , 19J« 1937 JJ 1938 1939 '"-V't \ju ror*c by. NH Ni 1940 1941 1942 Wednesday figures. Required and excess re serves, but not the total, are partly estimated. Latest figures shown are for October 14, 1942. DigitizedPage for FRASER Eight Bank credit. Following a temporary peak of 3 billion dollars in mid-September, excess reserves of member banks declined to 1.7 billion dollars in the latter half of September but increased considerably in the first three weeks of October. This increase resulted in part from the action of the Board of Governors of the Federal Reserve System in reducing reserve requirements on demand deposits at central reserve city banks from 22 to 20 per cent, which added about 400 million dollars to excess reserves. In addition member bank reserves were increased through purchases of Government securities by the Federal Reserve Banks. As a result of these developments excess reserves of all member banks on October 21 amounted to 2.4 billion dollars, of which about 500 million dollars were in New York City. At reporting banks in leading cities heavy purchases of new Treasury certificates of indebtedness and Treasury notes were reflected in an increase of 1.6 billion dollars in Government security holdings during the four weeks end ing October 14. Further large increases occurred in the following week as banks received their allotments of the new 1% per cent notes and 2 per cent bonds. Commercial loans, after declining in August and September, increased in the first two weeks of October, mainly in New York City, while other loans declined further. United States Government security prices. Prices of United States Government securities continued steady last month. Long-term taxable bonds are yielding 2.33 per cent on the average and long-term partially tax-exempt bonds are yielding 2.05 per cent.
@FedFRASER