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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT OCTOBER i, 1930 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Industrial production as a whole was in the same volume in August as in July, contrary to the usual upward trend at this season, although there were seasonal increases in activity in a number o f basic industries. Factory employment and payrolls declined further. The general level o f com modity prices at wholesale, which had declined continuously for a year, re mained unchanged between July and August, advances in price being re ported for certain important agricul tural staples. Production. The Board’s index o f in dustrial production, which makes al lowance for seasonal variations, con tinued to decline in August. Produc tion o f automobiles, pig iron, lumber, and sugar decreased, and there was a reduction in the consumption o f cotton and wool. In the bituminous coal and silk industries, there was less increase than is usual at this season, while in steel, cement, flour, and shoes the in crease was slightly more than sea sonal. During the first two weeks o f September, activity at steel plants in creased, while a further reduction in output o f automobiles was reported. Building contracts awarded, as re ported to the F. W . Dodge Corpora tion, were in slightly smaller volume during August, largely on account o f reductions in educational and indus trial construction projects. Residen tial building contracts continued small. During the first two weeks in Septem ber, awards averaged about the same as in August. A t the middle o f August, the latest date for which figures are available, the number o f wage earners employed in factories and the volume o f factory payrolls was smaller than in the mid dle o f July. There were decreases in employment in the iron and steel and cotton textile industries, and at foun dries and machine shops, automobile plants, and saw mills. Substantial seasonal increases occurred in the canning and preserving, bituminous coal mining, and clothing industries. Agriculture. September first estimates by the Department o f Agriculture in dicate a corn crop o f 1,983,000,000 bushels, about 700,000,000 bushels less than the five-year average; a spring wheat crop o f 240,000,000 bushels, slightly larger than last year’s unusu ally small crop, making the total wheat crop about equal to the fiveyear average; and a crop o f oats o f about the usual size. Condition o f pastures on September first was re ported to be unusually poor. The cot ton crop is expected to be about 14,340,000 bales, nearly one half million bales less than last year. Volume o f freight shipped by rail increased by slightly less than the usual seasonal amount Distribution. Indexes of the United States Bureau of Labor Statistics (1926 =100, base adopted by Bureau). Latest figures August, farm products 84.9, foods 87.1, other commodities 83.3. Page One during August. Sales o f department stores were larger than in July, but continued considerably smaller than a year ago. Wholesale prices. There were in creases during August in prices of many agricultural products, especially meats, livestock, and grains, while the price o f cotton decreased. Prices of mineral and forest products and of imported raw materials and their manufactures in general declined, with the principal exception o f silk. The Bureau o f Labor Statistics’ index of wholesale prices showed no change from the preceding month. During the first half o f September, there were pronounced declines in prices of wheat, corn, hogs, pork, and rubber. Prices o f cotton and woolen textiles remained fairly stable, while those o f hides and coffee increased. Between August 20 and September 17 there was an increase in member credit holdings o f investments and in their loans on securities, while all other loans, which include loans for commercial purposes, declined, contrary to usual seasonal trend. The volume o f reserve bank credit outstanding showed a growth for the period, as is usual at this season, but the increase was relatively small, ow ing to the fact that the seasonal de Bank credit. mand for currency was smaller than in other recent years and owing to an addition o f $15,000,000 to the coun try’s stock o f gold. The increase was in holdings o f acceptances, offset in part by a further decline in discounts for member banks to the lowest level since 1917. Money rates continued at low levels during August and the first half of September, and the yield on highgrade bonds declined further. Dis count rates at the Federal reserve banks o f Dallas and Minneapolis, the only banks which had maintained a 4 per cent rate, were reduced to per cent during September. Business and Financial Conditions in the Philadelphia Federal Reserve District Industrial and mercantile conditions during August showed some seasonal recovery from the exceptionally low levels in July, and the fall improve ment in manufacture and trade, however gradual, has continued in September. Sharp curtailment o f pro duction in earlier months of the year, light inventories in retail channels, an apparent halt in the precipitous de cline o f prices, and a favorable credit situation have been some o f the fac tors in the improvement o f business sentiment. The supply o f funds for business continues ample and commercial money rates remain the lowest in years. The reserve bank’s reserve position is exceedingly strong. The market for manufactured products, while still be low last year’s volume, has strength ened rather noticeably since the middle o f last month. W hile this improve ment is seasonal in character, there are instances showing that sales have been slightly larger than usual. Price declines, though less extensive than in the preceding month, have occurred in several lines o f important commodi ties. Forward business, while remaining below last year, has increased measureably in many basic lines. A s a result, productive activity has risen somewhat from the July level which was the lowest for several years. Factory wage payments and employehours worked increased slightly be tween July and August and in some cases, such as textile and leather Manufacturing. Pac/e Two ricating industry does not show as products, the gain was somewhat more widespread an improvement as is nor than is customary. Employment, on mally expected; it is barely holding the other hand, showed a slight fur its ground at a lower level than in ther drop instead o f continuing at the recent years. The daily output of pig July level as in other years. iron showed practically no change be The demand for textile products has tween July and August when adjust been decidedly more active. The out ments for seasonal changes are made. put o f cotton and wool manufactures, Operations o f steel mills, on the other and hosiery showed a gain during hand, showed a slight further decline August following a sharp decline in in August but little change in Sep July to the lowest level in years. A c tember. Electrical apparatus plants tivity in the silk industry also turned have expanded their schedules as is to definitely upward as indicated by sub be expected, so that the present rate of stantial increases in payrolls and em output is higher than in several years ploye-hours. The carpet and rug except 1929. This is also true of situation, while showing some upturn radio and musical instruments which in demand, remains very unsatisfac showed an especially sharp recovery tory , p r od u ctiv e a ctiv ity con tin u in g at from a level earlier in the year which a decidedly low level relative to other was the lowest since 1925. Foundries, years. The rate o f activity in the on the other hand, showed some curclothing industry is much higher than in the preceding month though lower than a year ago, as is the case with all o t h e r textile branches. Stocks o f textile finished products are moderate and show a material decline from the previous m o n t h and a year ago. The r a n g e o f price fluctuation has been narrow ing s o m e w h a t, suggesting an ap proach to stability. The metal fab Source: American Railway Association Sources: Department of Commerce Fairchild’s Publications Dun’ s Review tailment during the month. In the transportation group, only locomotives and cars showed expansion. Prices o f metal products generally declined slightly in August but since then they have been steadier; quotations for pig iron, however, dropped lately to the lowest level since 1915. Iron and steel production (gross tons) First 8 months of 1930 Per cent change since 1929 1928 Pig iron: United States............. 23,424,770 - 1 9 . 7 Phila. F. R . District. 2,056,044 - 2 6 . 0 -5 .3 -4 .0 Steel ingots: United States............. 29,821,891 - 2 3 . 2 -9 .0 Source: Iron Age The leather industry continues on the upgrade. The hide market is fairly strong both with respect to de mand and prices. Little change is noted in the demand for goatskins. Tanning o f goat and kid leather in creased further in August and com pared rather well with other years. Daily production o f shoes increased by a larger amount than was to be expected between July and August. Productive activity in chemicals and drugs, and coke declined further. The output o f explosives, and paints and varnishes, on the other hand, showed seasonal gains although it re mained below a year ago. Operations o f petroleum refineries in this section also increased in the month but not in the year. Production of various building ma terials showed an appreciable expan sion between July and August. The daily output o f cement increased more August, 1930 Percentage change since Business indicators Philadelphia Federal Reserve District Amount Aug., 1929 July, 1930 Retail trade*— estimated net sales (154 stores) Department (6 4 )................................................ M en’s apparel (2 0 )............................................ W om en’s apparel (1 7 )....................................... Shoe (3 7 ).............................................................. Credit (1 6 )........................................................... $586,800 $502,100 $17,600 $43,600 $ 10,100 $13,400 - 11.0 11.2 7 .9 4 .6 15.8 22.1 + 8 .6 + 9 .8 + 12.1 - 6 .0 -1 3 .7 + 3 5 .4 W holesale trade*— net sales (103 firms) Boots and shoes ( 5 ) ................................ Drugs (1 0 )................................................. Dry goods (1 2 )......................................... Electrical supplies ( 5 ) ............................ Groceries (3 2 ).......................................... Hardware (2 2 )......................................... Jewelry (1 0).............................................. Paper ( 7 ) ................................................... $255,714 $4,067 $40,211 $11,003 $14,287 $105,957 $53,387 $10,898 $15,904 + - 12.8 15.4 1.3 12.1 51.1 5.1 13.4 26.4 15.6 - 1 .2 + 2 7 .1 - 3 .7 + 11.2 - 5 .0 - 3 .6 - 4 .2 + 3 5 .2 + 4 .2 299,423 $7,438,256 prs...................45,854 doz. prs.......... 47,200 lbs..................191,746 522,563 to n s .................. 5,949 ton s....................... 168 to n s.......................163 to n s .............. 237,900 ton s.............. 376,200 - 13.6 23.4 - 15.9 - 4 7.5 - 27.0 - 4 5.6 + 12.0 - 16.2 - 1 .2 + 1 .5 + 19.1 + 3 .4 + 0 .0 -1 3 .5 - 4 .4 - 3 .4 -1 4 .5 + 9 .3 - 0 .8 bbls................. 54,581 bbls............... 118,581 K W H ... 12,260,700 + - 9 .6 6 .7 5 .3 -1 1 .6 + 3.1 + 1.4 $2,126,168,000 - 2 3.2 -1 0 .4 $1,680,000,000 $18,200,000 $21,811,000 $14,537,500 103 $2,343,100 + 1.8 - 80.4 + 26.4 + 7 5 8 .9 1.0 - 13.7 + 1.1 -2 5 .4 + 5 .4 -4 1 .9 + 7 .3 - 6 .8 - 4 4.0 2 0.3 9.1 50.5 + 2 .5 - 2 .5 - 0 .0 -1 9 .7 + 22.9 + 16.9 + - + 0 .4 - 1.4 -1 4 .7 + 1.4 Productive activity*— Employment— 841 plants in Penna................................................. W age payments (weekly average)................................................... Shoe production!— 72 factories........................................................ Hosiery production!— 133 mills....................................................... W ool consum ption!— 67 m ills.......................................................... A ctive cotton spindle hours (P enn a.)............................................. Pig iron production............................................................................. Iron casting production— 33 foundries........................................... Steel casting production— 11 foundries.......................................... Anthracite.............................................................................................. Bituminous coal (P enn a.).................................................................. Petroleum receipts at Port of Philadelphia— domestic and for eign...................................................................................................... Cem ent................................................................................................... Electric power output— 12 system s................................................. Financial and credit— Debits (check payments)— 18 cities................................................ Loans and investments— middle of September— 91 member banks.................................................................................................. Bills discounted held by F. R . B. of Phila. (daily average) Bankers’ acceptances outstanding— end of m onth...................... Commercial paper sales—4 dealers................................................. Commercial failures-—num ber.......................................................... Commercial failures— liabilities....................................................... Building and real estate—■ Building permits— 17 cities............................................................... Building contracts awarded.............................................................. Number of real estate deeds recorded (Philadelphia county) . . Value of mortgages recorded (Philadelphia co u n ty )................... Sheriff sale— number of writs issued for September— (Phila delphia cou n ty)................................................................................ Miscellaneous—Freight car loadings (Allegheny district).................... Tonnage of vessels (Port of Philadelphia).................. Sales of life insurance (Penna., N. J., and D e l.)........ Automobile sales registrations of new passenger cars $5,434,181 $19,858,800 4,161 $9,667,765 1,476 814,359 to n s......... 4,570,284 $90,145,000 13,993 2 1.2 7 .3 9 .5 33.6 * Daily average of monthly figures, t Bureau of Census preliminary figures. Page Three CEMENT MILLIONS BARRELS 8 7 6 5 4 3 2 1926 1927 1928 1929 1930 Source: Department of Commerce— Bureau of Mines than seasonally but continued lower than in August o f other years, except in 1929. Stocks o f Portland cement, though declining recently, remain at a relatively high point. Operations o f plants producing brick also exhibited some betterment but lumber mills showed little change. Virtually no change is shown in prices. There has been little variation in productive activity o f the food indus try, increases in some lines being practically offset by declines in others. The daily output o f tobacco products increased when due allowance is made for seasonal variations, although with out such a correction there was a slight decline in the output o f cigars and a relatively larger decline in wage payments. August, 1930 (Daily average) Electric power Philadelphia Federal Reserve District 12 Systems Change Change from from August, July, 1929 1930 Per cent Per cent Rated generator ca p a city.......... + 4 .9 + 0 .2 Generated ou tp u t........................ H ydro-electric.......................... Steam ......................................... Purchased.................................. - 5 .3 -2 9 .6 -1 .4 -1 0 .2 + 1 .4 -6 3 .1 + 11.6 + 9 .5 Sales of electricity....................... - 1 .5 Lighting..................................... + 13.8 M unicipal............................. + 3 .2 Residential and commercial...................................... + 15.4 P ow er......................................... + 1.8 M unicipal.............................. + 2 7 .0 Street cars and railroads. . - 6 .3 Industries.............................. + 2 .6 * All other sales.......................... \—4 0.3 + 4 .7 + 3.1 + 12.0 + 2 .0 + 4 .8 + 6 .1 - 0 .4 + 5 .6 * + 7 .6 * W orking days average. Building and real estate. As shown by the indexes o f employment and wage payments and the number o f hours worked, activity in the conPage Four Building contracts awarded (000’s omitted in dollar figures) First eight months, 1930 Per cent change from 1929 1925-28 average Philadelphia............... $102,408 Reading....................... 2,685 Scranton...................... 3,349 Cam den....................... 2,822 Tren ton....................... 2,715 W ilm ington................. 4,579 - 5 .2 -6 3 .0 + 88.3 -7 6 .5 -7 1 .0 -3 4 .5 -2 7 .2 -4 0 .2 - 2 .3 -5 1 .9 -5 3 .3 + 8 .6 Total for Philadelphia Federal R eserve District, ineluding all cities. .. -1 1 .7 -1 5 .5 261,336 Source: F. W. Dodge Corporation struction and contracting industry in Pennsylvania declined by about the usual seasonal amount between July and August. In the Philadelphia area, however, employment in the building trades increased during the month and wage payments showed a gain o f 3.2 per cent. The proposed expenditure under permits issued in 16 cities o f this dis trict increased slightly in the month, but remained considerably smaller than a year ago. The value o f con tracts awarded for new construction, on the other hand, showed a decline and with the exception o f February, the August awards were the smallest for any month since December, 1929. The sharpest drop in the month oc curred in contracts for public works and utilities, while awards for com mercial buildings showed a substantial gain over the July figure. Awards thus far this year have been materially below the monthly averages o f the past five years, as is indicated by the accompanying table and chart. The most drastic decline has taken place in contracts for resi dential buildings, particularly apart ments and the more expensive houses. The real estate situation remains quiet and sales o f houses have shown but little change, although they con tinue in a much smaller volume than a year ago. The number o f real estate deeds recorded in Philadelphia de clined slightly in August, while the value o f mortgages decreased sharply and was the smallest since September 1929. The number o f writs issued for sheriff’s sale during September rose sharply and even exceeded the unusu ally high peak reached in July o f this year. Coal. Influenced by the prospect o f another price advance on September first, the market for anthracite became more active during the last ten days o f August. Production increased rather sharply in the last two weeks o f the month and the daily output of collieries was larger than a year ago. The total production o f 6,185,000 tons was the largest since January and showed an increase o f 450,000 tons over August 1929. Although dullness continued to per vade the market for bituminous coal during August and the early part of September, the demand was somewhat more active than in July, reflecting improvement in industries. The weekly production in the country in creased steadily throughout the month, but the daily output o f Penn sylvania collieries was smaller than a month and year ago. Agriculture. W ith the help o f recent rains, which have been fairly general in the eastern and southeastern sec tions o f this district, soil conditions have shown a marked improvement and preparations for fall seeding are WHOLESALE PI-IILA. TRADE FED. RES. DIST. NE1 1 9 2 3 —2 5AVG.—100 SALES GROCERt E S . ,A j i \tA1 w\ . p t a p / 1r. l * \w f V v . \\ A v \ h H, *R D W A R E -" CORRECTEI 5 FOR SE A .30NAL VAR ATIONS 1926 1927 1928 1929 1930 MILLIONS BARRELS 11 10 ~ A 9 j \ 8 7 6 5 4 3 GASOLINE EAST COAST A__ f\ \ \ \ V 1926 T p 1\ J \ / T 3 STOCKS t \ __L A i1 \ \l \ ------- 1 A t---- f \ !/ ^\\lAf>/i \\ i VvaS V 'V PRODUCTICN 1927 1928 1929 1930 Source: Department of Commerce— Bureau of Mines said to be progressing at about the normal rate. In other localities, how ever, particularly in the south central counties o f Pennsylvania, the con tinued scarcity o f rain has intensified the droughty conditions and the hard, cloddy texture o f the soil has made plowing difficult. Production estimates as o f Septem ber 1, 1930, indicate that the yields in this district o f corn, tame hay, to bacco, and white potatoes will be con siderably smaller than last year, while the wheat and oats harvest is expected to exceed that o f 1929. The yield o f apples in 1930 will be larger than a year ago and about equal to the fiveyear average. On the other hand, an extremely short crop o f peaches is predicted for this year, one that will be materially smaller than the actual harvests o f either 1929 or the 1924-28 average. Although late pastures in some of the counties have improved recently, they have been inadequate to meet the grazing requirements o f cattle, so that the present condition o f livestock is said to be lower than a year ago. Wholesale business in August failed to make the usual up ward movement, although seasonal in creases were reported in the sale o f shoes, dry goods, jewelry, and paper. Dollar sales were also smaller than a year before in all lines except drugs. Since sales are reported in dollar units, comparisons with recent years are unfavorable, owing largely to a continuous decline in commodity prices this year. Latest reports indi cate some seasonal improvement in most lines. Inventories held by re porting dealers as a rule increased Distribution. somewhat in August but continued materially smaller than a year earlier. Retail sales in August increased nearly 9 per cent which is slightly more than the usual gain over July. Department, men’s apparel, and credit stores shared in this increase, while shoe and women’s apparel stores re ported further declines. In compari son with a year ago, sales were about 11 per cent smaller, and in the first eight months o f this year they were 6 per cent less than in the same period last year. This adverse comparison with last as well as other years may be attributed partly to lower prices and partly to industrial conditions. Stocks at retail stores remain at a relatively low level. There was some increase at apparel and shoe stores, but the department and credit stores reported further declines between July and August. Inventories on the whole continued noticeably smaller than a year ago. Railroad shipments declined rather sharply in August, when figures are corrected for the usual seasonal varia tions, and the gain in the first part o f September was not as large as is to be expected. In comparison with the previous three years, freight car load ings have been substantially smaller in nearly all months thus far this year as is shown by the accompanying chart. This decline was due largely to a smaller movement o f merchandise and miscellaneous commodities. Rapid growth in transportation o f goods by truck, particularly o f finished com modities, may also account in part for the unfavorable comparison with other years. Sales o f passenger automobiles in creased seasonally but were much smaller than in August 1929. L ife insurance sales declined instead o f in creasing in the month and were nearly 10 per cent less than a year ago. Commercial failures increased in number but decreased in liabilities during August. In the first eight months o f this year, however, the number o f failures was about 31 per cent larger and the amount o f liabili ties almost 42 per cent greater than in the same period last year. The credit sit uation in this district continues to give evidence o f a supply o f funds in ex cess o f the current needs o f industry and commerce. Such changes as have taken place in the past month have not altered the existing ease o f the situation. Large Philadelphia banks report a range o f Zy2 to 4y2 per cent in their charges for commercial loans to prime customers, with an average o f ap proximately 4 per cent, which com pares with a little over 4 per cent a month ago and almost 6 per cent last fall. The renewal rate for call money in this city remains at 4 per cent. There has been no change in the dis count rate o f the Federal Reserve Bank. Income tax check collections were heavy, as may be expected in Sep tember, and the Treasury transferred a considerable part of the sums so col lected to New York, where maturities o f government securities and coupon payments were large. The depletion in bank reserves resulting from these collections, however, was compensated by substantial gains in the settlement o f commercial and financial transac tions with other districts. Financial conditions. Page Five So favorable was the balance in the interdistrict settlements that the cash reserves o f the Federal Re serve Bank increased from 232 to 239 millions during the four weeks ended September 17 and the reserve ratio rose from 86.1 to 88.7 per cent, a very high figure, while member banks reduced their borrowings and also added to their reserve deposits. Less than 15 millions o f bills were under discount at the reserve bank on September 17, this being the smallest in any recent year. The number o f borrowing banks continues rather large in view o f the small amount o f discounts, having averaged about 250 banks compared with 390 a year ago when borrowings were much heavier. N o acceptances have been purchased by the reserve bank during the past month and its holdings o f United States securities have not changed. In late August, mainly in connec tion with the holiday, there was a larger demand for currency, nearly all o f which has returned. Currency de mand remains materially below that o f a year ago, since payrolls and re tail trade, which constitute the prin cipal uses o f money, are now in substantially smaller volume. Member banks in Philadelphia, Camden, Scranton, and Wilmington report an increase from 1,090 to 1,116 millions in deposits during the four weeks ending September 17, expan sion taking place in demand, time, and government deposits. Loans and in vestments rose from 1,277 to 1,298 millions. Although there was a new issue o f government certificates dur ing the month, holdings o f govern ment issues increased only 3 millions Page Six and the banks purchased 10 millions o f other securities. Loans on securi ties increased by 10 millions, but there is reason to believe that this was due to additional loans to New Y ork brokers. The so-called ‘'commercial” loans show a small decline, although there usually is an increase at this time o f the year. Commercial paper sales (Four dealers) Country banks Ninety-one m ember banks in 20 cities (000,000’s omitted) Sept.18, Sept.17, Changes 1929 1930 Loans on securities. . . . * Other (largely commer cial) loans and discou nts.......................... Sales to City banks mercial paper this year, it is evident that the volume o f commercial loans to customers has fallen off in marked degree. The figures o f these banks fo llo w : T otal sales 1930— M ay. $ 7,762,500 *3,915,000 *11,677,500 June. 5,000,000 3,437,500 8.437.500 July . 18,686,000 6,334,400 25,020,400 Aug.. 11,287,500 3.250.000 14,537,500 1929— Aug.. 122,500 1.570.000 1.692.500 First eight months: 1 9 3 0 ... 102,457,000 1 9 2 9 ... 22.722.000 1 9 2 8 ... 41.466.000 Purchases o f commercial paper and bankers’ acceptances in the openmarket are included in “ all other loans and discounts” by the member banks, and the latest figures show that the reporting banks were holding nearly 60 millions o f such paper. Since the first o f September, brokers report a decline in sales o f commercial paper, owing not to slackening o f demand but to limited supply. Sales this year have been exceptionally heavy. The amount sold in August by four deal ers, while considerably below the rec ord month o f July, was exceeded by only one other month o f the year, as the accompanying chart shows. Loans on securities by 91 banks in twenty cities of this district are little larger than a year ago, while other loans and discounts have declined. In view o f far heavier purchases o f com 586 $ + * 4 615 638 590 - Total loans and discou nts.................. *1,224 $1,205 Investm ents.................... 427 475 N et demand deposits . . 846 897 Tim e deposits................. 464 543 23 — *19 + 48 + 51 + 79 On September 15, an issue o f cer tificates o f indebtedness matured, but less than 2 millions was presented for redemption, although more than 16 millions originally had been allotted to the district. Subscriptions to a new issue totaled $107,700,000 and $25,900,000 was allotted, nearly all of which was paid for by deposit credits extended by the purchasing banks. Federal Reserve Bank of Philadelphia (Dollar figures in millions) Changes in Sept. 17, 1930 Bills discounted for banks in Philadelphia........ $ 0 .8 Other communi ties ..................... 13.9 T o t a l b ills d is counted ............. $ 14.7 Bills b ou gh t............. 0.1 United States se 52.2 curities .............. Other securities. . . . 1.0 Total bills and se curities .............. $ 68.0 Mem ber bank re serve deposits. . 145.5 Cash reserves........... 239.2 Reserve ra tio............ 8 8 .7 % Four weeks One year + * 0 .1 -* 4 9 .9 - - 2 .0 22.5 -* 1 .9 0 -* 7 2 .4 - 12.6 0 0 + 34.0 + 0 .7 -S 1 .9 -* 5 0 .3 + + + 2 .4 + 7 .5 + 2 .6 % + 8 .2 38.3 1 8 .6 % Payrolls Aug., 1930 Employment Aug., 1930 Employment and wages in Pennsylvania Percentage change Aug. 1930, compared with Aug. 1929 Conditions by city areas * Per cent change since Aug. index* Per cent change since Aug. July, 1930 Aug., 1929 July, 1930 All manufacturing industries (5 1)...................................... 8 7.6 -1 3 .6 - 1.2 8 2.8 -2 3 .4 + 1.5 M etal products.......................... Blast furnaces........................ Steel wks. & rolling m ills. . . Iron and steel forgings........ Structural iron w ork............ Steam & hot wtr. htg. ap. .. Stoves and furnaces............. Foundries............................... Machinery and parts........... Electrical apparatus............. Engines and pum ps.............. Hardware and tools............. Brass and bronze products . 8 6.4 53.8 76.7 82.7 123.1 95.4 79.2 87.4 92.9 119.3 82.4 81.2 87.1 -1 8 .6 -1 6 .6 -1 5 .9 -2 5 .8 + 2 .9 - 0 .5 + 10.3 -1 8 .5 -1 7 .4 -2 7 .0 -1 7 .5 -2 2 .4 -2 2 .7 + + + - 0 .9 3 .9 2 .0 5.1 0 .7 5 .5 5 .2 6 .0 3.2 5.7 4 .7 2 .8 2 .9 8 2.9 53.7 72.5 74.4 119.2 91.1 66.6 78.0 78.1 131.7 80.7 70.7 81.4 -2 7 .2 -1 8 .5 -3 0 .2 -3 8 .0 + 0 .5 -1 1 .9 - 0 .7 -3 1 .5 -3 4 .9 -2 5 .4 -2 6 .3 -3 4 .0 -3 0 .2 + + + + + - 2 .0 0 .6 0 .1 7 .5 7 .6 1.2 8 .5 1 .0 6 .6 10.5 5 .3 1.7 2 .3 -1 0 .7 -2 3 .6 -2 7 .5 -1 6 .6 - 3.1 +58 n 5 9 .4 f - 7 .9 2 1.5 -4 1 .7 48.9 -1 2 .3 43.3 - 1.3 - 2 .8 74.6 + 1 3 144 0 -2 4 .5 -4 3 .0 -3 9 .5 -2 2 .5 -1 3 .6 +43 0 - 5 .6 -4 5 .8 -1 7 .5 + 5 .6 + 0 .3 — 0 3 6 7 .7 f 3 6.5 64.3 4 4.8 77.4 92.1 W age payments Building permits (value) Debits -1 2 .1 -1 2 .5 -1 0 .7 -2 6 .4 -1 1 .7 -1 8 .8 -1 4 .2 -3 2 .7 -1 8 .4 - 2 .9 -1 6 .3 - 9 .1 - 6 .9 -2 0 .9 -2 1 .5 -2 6 .3 -4 0 .3 -2 3 .9 -2 3 .1 -3 6 .4 -2 8 .8 -2 7 .3 -1 3 .7 -2 1 .8 -1 5 .2 -1 2 .2 - 73.0 - 83.8 - 68.1 - 55.0 - 34.8 - 59.2 - 63.7 + 8 2 6 .6 + 12.2 + 35.3 - 83.5 + 48.1 + 10.0 -1 6 .3 -1 0 .4 -1 9 .6 -2 5 .5 -1 7 .9 -2 5 .3 -2 4 .4 -1 3 .7 -1 6 .7 -1 9 .5 -2 2 .9 -1 7 .0 -1 2 .5 -1 0 .8 - 7 .9 -1 4 .2 -1 5 .3 - 9 .5 - 9 .2 -2 5 .6 - 8 .1 - 7 .1 - 3 .8 - 4 .9 - 5.1 - 5 .9 - 9 .9 - 7 .9 -1 1 .3 -1 9 .3 - 6 .5 -1 0 .3 + 1 .5 — 6 .3 -1 3 .1 — 1 .8 + 11.2 + 4 .7 + 5 .9 + 19.8 -1 3 .7 + 8 .9 - 0 .2 '+ 2 .5 + 4 .2 + 2 .9 A llentow n............... A ltoon a................... H arrisburg.............. Johnstown.............. Lancaster................ Philadelphia........... R eading................... Scranton.................. T ren ton................... W ilkes-Barre.......... W illiam sport.......... W ilm ington............ Y o r k ......................... A llentow n............... A ltoona................... Harrisburg.............. Johnstown.............. Lancaster................ Philadelphia........... R eading................... Scranton.................. T ren ton................... W ilkes-Barre.......... W illiamsport.......... W ilm ington............ Y o r k ......................... 86.7 60.6 56.9 92.0 91.0 57.2 89.1 109.0 75.1 80.1 96.9 108.8 -1 8 .7 -3 2 .7 -2 5 .9 -1 5 .5 -1 5 .5 -1 9 .0 -1 0 .4 -1 7 .2 -2 4 .0 -1 2 .8 -1 8 .9 -2 4 .8 + 0 .8 - 2.6 + 1.8 + 2 .6 + 2 .2 - 7 .0 + 0 .6 + 4 .8 -1 4 .3 - 0 .2 + 4 0 .8 -1 3 .0 7 6.0 50.7 52.6 9 1.2 85.4 38.7 79.4 88.1 71.5 73.5 86.0 102.8 -3 2 .6 -4 1 .3 -3 0 .4 -2 2 .1 -2 4 .2 -3 4 .8 -2 2 .6 -4 4 .3 -3 5 .9 -2 8 .9 -2 8 .7 -3 2 .1 + 6 .4 + 7 .0 + 1.3 + 14.4 + 4 .0 -1 0 .4 + 8 .9 + 8 .0 -1 7 .6 + 11.9 + 3 6 .3 - 5 .9 Foods and tob a cco................... Bread & bakery products . . C onfectionery........................ Ice cream ................................ Meat packing........................ Cigars and toba cco............... 107.9 109.5 94.7 125.2 94.6 107.6 + + - 1.9 - 1.8 + 0 .2 - 4 .0 - 0.4 - 2 .4 100.7 107.6 85.4 119.8 8 9.0 9 3.3 - 1.9 - 2 .4 -1 1 .6 -4 .4 - 2 .7 + 4 .4 - 3 .7 - 3 .5 + 2 .5 - 3 .9 - 0 .9 - 7 .0 W holesale trade Philadelphia Federal Reserve District Boots and shoes. . . 2 .8 0 .5 4 .3 1.6 3 .0 9 .1 Stone, clay & glass products. . 66.1 Brick, tile and p ottery......... 77.3 C em ent.................................... 63.4 Glass........................................ 59.3 -2 0 .3 -2 0 .3 - 8.1 -3 2 .5 - 2 .9 5.7 1.9 1.3 5 7.8 6 6.0 5 9.5 49.9 -2 9 .6 -3 1 .5 -1 7 .0 -4 3 .7 + 5.1 + 12.8 + 0 .3 + 6 .6 7 6.5 73.7 73.2 7 2.3 -2 4 .0 -2 7 .5 -2 7 .5 - 4 .7 + 3 .2 - 0 .3 + 7 .5 - 0 .3 7 1.4 6 4.8 73.4 6 3.0 -3 0 .6 -3 2 .6 -3 2 .4 -1 8 .6 + 3 .5 - 7 .6 + 14.2 - 5 .3 Chemical products................... 94.6 Chemicals and drugs........... 66.1 C ok e........................................ 87.1 E xplosives.............................. 8 1.8 Paints and varnishes............ 9 3.6 Petroleum refining................ 129.0 - 5 .5 -2 3 .8 - 3 .4 -1 1 .0 - 8 .0 - 1.0 + 0.2 - 7 .8 -1 2 .9 + 2 .0 - 3 .8 + 7 .9 98.9 6 5.4 8 0.7 109.5 9 8.2 134.6 - 8 .4 -2 6 .8 -1 .9 - 6 .3 -1 0 .6 - 6 .7 - 2 .6 + 2.1 - 7 .3 -1 6 .7 - 2 .9 + 1.5 + 1.8 + 1.4 - 2 .6 + 0 .7 102.9 113.6 92.1 86.0 9 7.0 - 3 .6 + 4 .5 -1 8 .2 - 8 .8 -1 0 .8 + 7 .0 + 4 .5 + 14.8 + 6 .8 + 1.6 Paper and printing................... 97.4 Paper and wood p u lp ........... 85.2 Paper boxes and bags.......... 88.2 Printing and publishing.. . . 102.0 - 2 .3 + 0 .5 -1 1 .2 - 2 .3 + + + - 0.4 2 .5 2 .7 0 .6 101.3 80.7 90.4 108.3 - 7.3 -1 1 .4 -1 5 .6 - 5 .5 + + + 1.8 8 .2 4 .5 0 .3 80.8 -1 3 .7 - 1 2 .5 67.2 - 6.1 + 2 .2 - 6 .4 - 2 .9 + 0 .8 - 5 .8 + 2 .6 - 3 .9 -2 1 .3 - 3 .5 - 3 .8 -2 5 .9 + 4 .1 + 0 .2 + - 2 .5 0 .6 + 1.9 Construction & contracting.. . 113.9 -1 2 .0 - 1.9 99.9 -1 6 .0 - 4 .6 Street railway............................ - 8.3 - 1.8 78.5 -1 3 .9 - 9.1 87.1 - 5.1 - 0 .7 91.0 — 5 .8 - 0.1 * 1923-1925 average =100. 82.9 + 2 0 .4 * Area not restricted to the corporate limits of cities given here. Percentage change Net sales: 1930 compared with 1929 Stocks: Aug. 31, 1930, compared with Aug. Eight months Aug. 31, 1929 July 31, 1930 D ry g ood s............... Electrical supplies. Groceries................. H ardware............... Jewelry.................... P aper....................... -1 5 .4 + 1.3 -1 2 .1 -5 1 .1 - 5.1 -1 3 .4 -2 6 .4 -1 5 .6 -1 0 .5 - 1.0 -1 0 .7 -3 7 .9 - 3 .5 -1 0 .0 -2 5 .9 -1 1 .5 -1 3 .9 -4 0 .5 - 3 .5 - 5.4 -1 3 .5 - 4 .0 + 1.8 + 6 .9 + 1.9 -0 .1 -1 .2 + 3 .3 Collec tions during Aug. 1930, compared with 1929 — 9 .1 — 7 4 -1 0 .0 -5 2 .6 -1 3 .6 -1 7 .7 -2 0 .2 -2 1 .8 Percentage change Retail trade Philadelphia Federal Reserve District Net sales: 1930, compared with 1929 Aug. Anthracite.................................. - 54.1 - 49.9 — 4 4.5 - 70.4 - 83.4 8 .8 - 4 5.8 + 859.9 + 2 4 9 .6 + 162.1 - 71.2 + 35.4 - 66.9 + 2 .1 - 4 .4 + 0 .1 + 1.9 -1 2 .6 + 3 .0 - 3 .5 - 1.3 - 4 .4 - 6 .2 -2 5 .5 + 0 .2 - 0 .5 + 0.3 - 5 .9 - 5 .6 + 16.4 + 2 .9 + 1.9 Leather & rubber products. . . 98.7 Leather tanning.................... 110.6 Shoes........................................ 92.9 Leather products, Other . . . 78.3 R ubber tires and g ood s. . . . 8 9.3 -1 2 .5 Aug. 1930 compared with July 1930 Textile products....................... C otton good s......................... W oolens and worsteds......... Silk good s............................... Textile dyeing & finishing. . Carpets and rugs................... H a ts......................................... H osiery.................................... Knit goods, Other................. M en’s clothing....................... W om en’s clothing................. Shirts and furnishings......... Lumber products...................... Lumber and planing m ills. . Furniture................................ W ooden boxes....................... Retail trade sales index* Aug., 1929 Transportation equipment___ Autom obiles........................... Auto, bodies and parts........ Locom otives and cars.......... Railroad repair shops........... E m ploy ment Eight months Stocks: Aug. 31, 1930, compared with Rate of turnover: eight months » Aug. 31, July 31, 1929 1930 1929 1930 All reporting stores................... -1 0 .5 - 6 .1 -1 2 .1 -0 .5 2.37 2.38 Department............................... in Philadelphia...................... outside Philadelphia............ Men’s apparel............................ in Philadelphia...................... outside Philadelphia............. Women’s apparel...................... in Philadelphia...................... outside Philadelphia............. Shoe............................................. Credit.......................................... -1 0 .1 - 8 .9 -1 2 .4 -1 1 .1 -1 5 .6 - 6 .6 - 8 .2 - 7 .1 -1 3 .3 -1 8 .7 -2 4 .8 - 6 .4 - 5 .6 - 8 .2 - 6 .0 - 7 .5 - 4 .7 - 2 .2 - 1.9 - 4 .7 - 6 .8 -1 2 .5 -1 2 .1 -1 1 .4 -1 3 .5 -1 .7 -2 .0 -1 .1 2.33 2.35 2.56 2.60 1.92 1.90 -i2 .i -1 8 .1 -2 1 .7 - 0 .0 - 1.4 -1 3 .2 + 2 .2 + 7 .5 + 8 .9 + 1.5 + 3 .3 -5 .4 1.58 3.91 4.19 2.69 1.85 1.61 1.49 3.81 4 .10 2 .54 1.81 1.50 t Preliminary figures. Page Seven Synopsis o f Industrial and Trade Conditions in the Philadelphia Federal Reserve District D em an d O pera tion s S tock s M an u factu rin g Iron a nd Steel Blast furnaces ...................... Steel works and rolling mills ....................................... Foundries and machine shops .................................... Electrical apparatus .......... Locomotives and c a r s . . . . Shipbuilding ........................... Fair Some decline Fair Some increase Unfilled orders for iron castings increased slightly, while for steel castings there was a de cline in August Fairly active Fair Fair Output of iron and steel castings declined Increased in iron foundries and decreased considerably in steel foundries Increased Increased slightly Some increase T extiles Silk manufactures W ool dealers .............. ........................ W ool manufactures ............ Cotton manufactures .... .................................... Hosiery Floor coverings .................... Fair, increased; prices unchanged to lower Fair to poor, some increase in the month; prices unchanged to lower Fair, increased; prices somewhat lower Fair, increased in the month; prices unchanged to lower Fairly good, increased for fullfashioned; fair to poor, not much change for seamless Poor, slight increase in the month Increased Moderate, smaller than a month ago Increased Increased, but lower than a year ago Increased Medium, smaller than a month and year ago Moderate, smaller than a month ago Full-fashioned heavy; seamless light Declined Fairly active, increased; prices unchanged to lower Quiet, unchanged; prices lower Increased, much year ago Some increase Fair, not much change in the month Fair, increased; prices unchanged to lower Increased, but lower than a year ago Poor, declined; prices unchanged to lower Fair, declined; prices unchanged Increased slightly but much lower than a year ago Some increase in the month Poor, increased in the month; prices unchanged Fair to poor, increased; prices unchanged Fair, increased; prices un changed Fair to poor, declined; prices un changed to lower Fair, prices unchanged Not much change Full-fashioned increased; some in crease for seamless Moderate, slightly smaller than a month ago, but larger than last year L eath er p ro d u cts Shoes ......................................... Leather— sole ........................ kid ........................... goods ................... lower than a Light, smaller than a month and year ago Increased in the month Smaller than a month ago Moderate, smaller than last month but larger than a year ago B uilding m aterials Brick Cement ......................................... ..................................... Lumber— Mills ...................... Dealers Pottery Slate ................. .................................... ......................................... year Much lower than a year ago Declined in the month Heavy, increased in the month, larger than a year ago Fairly heavy, smaller than last month Moderate, some increase in month Moderate to heavy, somewhat smaller than a month ago month Moderate to light; smaller than a month ago Moderate, some increase in the month M iscellan eous Paper ......................................... Fair, prices unchanged to lower Tobacco— cigars ................. Fair, improved; prices unchanged leaf ........................ Fair, some increase; prices un changed Fair, some improvement in the m onth; prices unchanged to lower Fair, prices unchanged to lower Chemicals ................................ Confectionery ........................ Oil— refined ............................. Building Somewhat higher than a month ago Slightly lower than last month Below a year ago Slightly higher Fair Building permits increased slightly in the month, but re mained smaller than a year ago Increased rather sharply, higher than a month and year ago Increased in August, but smaller than a month or year ago Moderate to light, larger than a month ago Not much change Building contracts declined, the largest decrease occurring in awards for public works and utilities More active of late, domestic prices higher Slow, but more active than in July; prices unchanged to lower Fairly heavy, larger than a year ago Moderate to light, about the same as a month and year ago Moderate to light, declined in the month Smaller than a year ago C oal M ining Anthracite ............................. Bituminous ............................. Fairly heavy, larger than a year ago Light and smaller than a year ago T rade Retail ....................................... W holesale and j o b b i n g . . . . Page Eight Improving, creased sales Quiet, seasonal some lines in August improvement in in Light, some reduction in the month and smaller than a year ago Some increase in August, but smaller than a year ago