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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT OCTOBER i, 1931 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Volume of industrial production in creased from July to August by con siderably more than the usual seasonal amount, reflecting chiefly expansion in activity at textile mills. Wholesale prices advanced during August and the general level prevailing in the first three weeks of September was some what higher than in other recent months. There was a further growth in the country’s stock of monetary gold and a non-seasonal return flow of currency to the reserve banks. Production and employment. Indus trial output increased substantially in August and the Board’s seasonally ad justed index showed an advance from 58 to 60 per cent of the 1923-1925 average. Activity at cotton, woolen, silk and rayon mills increased from the low level of other recent months by considerably more than the usual seasonal amount, and there was also a substantial increase in activity at shoe factories. Output of automobiles, however, declined further and produc tion in the steel and lumber industries showed none of the usual seasonal in INDUSTRIAL PRODUCTION crease in August. During the first three weeks of September there was a slight advance in steel output. Employment at factories increased slightly more than is usual at this sea son. There were large additions to working forces in the textile, clothing, and leather industries, while in the automobile, tire and machinery indus tries and at car building shops the number employed decreased further. Aggregate wage payments increased less than seasonally. Building contracts awarded up to September 15, as reported by the F. W. Dodge Corporation, indicate that for the third quarter the total value of contracts will be about the same as for the second quarter, whereas usually awards for the third quarter are small er. Currently, contracts for public works are a considerably larger part of the total than they were at the beginning of the year and residential contracts are a smaller part. Department of Agriculture crop estimates based on September 1 con ditions indicate little change in pros pects during August. Indicated crops of wheat and tobacco are considerably smaller than in other recent years, while the corn crop is the largest since 1925. The cotton crop is estimated at 11,300,000, a decrease of about 6,000, 000 bales from the large crop of a year ago. Volume of merchandise and other freight handled by the rail roads increased seasonally during August, while during the correspond ing period a year ago no increase was reported. Department store sales of Distribution. FACTORY EMPLOYMENT AND PAYROLLS F\ rs\ PC* CENT 120 .V- Employment YJ __ H,' Payrolls v, \ 1927 1928 1929 1930 1931 1932 Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average =100.) RESERVE BANK CREDIT and FACTORS in CHANGES BUILDING CONTRACTS AWARDED MIUWNJ or DOLI..S MllllOul Of 00 6500 rrv*i ^ S' "fin Monty in Ci Cl/lltiOA ,nnn / Ls\ -________£ •ouu "N______ -'''"Gold s' ock 1 , MrmbtrBank “IKS!*'* - 500 Index number of industrial production, ad justed for seasonal variation. (1923-1925 aver age =100.) Indexes based on three month moving aver ages of F. W. Dodge data for 37 Eastern States, adjusted for seasonal variation. (1923-1925 average =100.) LJ / 1000 1927 1928 1929 1930 > T 1931 s i«2 Monthly averages of daily figures. Latest fig ures are averages of first 21 days in September. Page One merchandise increased from July to August by somewhat less than the usual seasonal amount. Wholesale prices. Wholesale commod ity prices advanced from 64.5 per cent of the 1926 average in July to 65.2 per cent in August, according to the monthly index of the Bureau of Labor Statistics. During August prices of many leading commodities including textile raw materials and finished products, wheat, hides, non-ferrous metals, sugar, rubber and coffee in creased substantially. In the first half of September there were declines in the prices of many of these commod ities, while prices of wool and woolen goods, cattle and hides advanced. Bank credit. During recent weeks Loans and investments of report ing member banks in leading cities showed little change between the middle of August and the middle of September. A further decline of more than $150,000,000 in loans by banks outside New York City during the past four weeks was offset in large part by continued increase in invest ment holdings, chiefly at member banks in New York City. There was a considerable growth in deposits of re porting member banks, reflecting in part large balances held by city banks for the account of other banks. Money rates in the open market remained unchanged at low levels dur ing August and the first half of Sep tember. further growth in monetary gold stock, a return flow of currency from hoards, and new issues of national bank notes have resulted in additions to the re serve funds of member banks. These banks have employed a part of the funds in further reducing their bor rowings at the reserve banks and have accumulated a part as reserve balances which at the present time are more than $300,000,000 in excess of re quired reserves. Reserve bank holdings of United States Government securi ties and of acceptances remained prac tically unchanged during the four weeks ending September 14, while the total of reserve bank credit declined by $43,000,000 through the reduction of discounts for member banks. Business and Financial Conditions in the Philadelphia Federal Reserve District Business conditions generally re flect improvement. Factory output showed more than the usual seasonal increase in August, and the rate of production was well maintained in early September. Coal mining, on the other hand, registered smaller than the expected increase in August but a sea sonal upturn in September. Contract awards for construction showed excep tional gains in August as did building permits, though both declined in the fol lowing two weeks. Retail and whole sale trade lately has been more active seasonally than in the previous month. Freight car loadings during August were not quite up to the usual volume but since then they have increased. Commercial failures have declined ap preciably in number and liabilities. In comparison with recent years, virtually all indicators have continued at lower levels. Industrial employment and payrolls on the whole were larger in August than in July. The increases were due to manufacturing, mining, quarrying and construction, while trades and serv ices showed declines. Incomplete re ports from Pennsylvania factories in dicate a further increase in September. There has been a marked improvement in the manufac turing industry of this district in August and early September, the most striking leader in this upturn being the textile group. The demand for manufactured products generally has resulted in a pronounced increase in Manufacturing. unfilled orders, particularly for textile, leather, paper and tobacco products. Some of the industries making metal products also report a slightly larger volume of business. While in many instances this change for the better is of seasonal character, there are never theless a number of concerns that re port improvement beyond the usual increase. Most of the reporting concerns show not only firmness in prices but also a continued tendency toward higher levels. Wholesale commodity prices of manufactured goods in Au gust advanced further in all groups ex cept those comprising building mate rials and house furnishings. The sharpest rise occurred in prices of semi-manufactured products. In Sep- WAGE PAYMENTS MANUFACTURING AND ELECTRIC POWER ALL MANUFACTURING INDUSTRIES PERCENT PERCENT 1923 25 AVG.= I00 10. 3-2SAVGjIOO DELAWARE ELECTRIC POWER 175 150 *. iA i > hi V-*. •• v'Y * V . !• i' N' V i V--------------- " DUCTIVE^ PRO T ADJUSTED FOR SEASONAL Page Two ^ \\ ft EL U' A *• ‘Vvv aA/A ?\+----------- 100 ____ s 50 100 V. 125 75 USED BY INDUSTRIES \ 75 NEW JER SEY X __ \ IN PENNSYLVA NIA \\ 50 ACTIVITY ARIATIONS IV 25 1927 1928 ......... 1929 1930 1931 1932 tember the general price level did not Business Indicators change materially. Inventories of finished merchandise Philadelphia Federal Reserve District at reporting factories have been re duced further and are smaller than Index numbers—expressed in percentages of 1923-1925 average, which index is taken as 100 they were a year ago. Stocks of raw “Adjusted" for thenumbers make allowance usual seasonal changes which result from an materials increased slightly in the case uneven distribution of business Adjusted for seasonal variations Not adjusted of textiles, while other groups showed between the months of the year. They are the most significant either declines or no change; com indexes because they snow im aparison provement or decline beyond the pared with a year ago, the supply of level usually to be expected. raw materials remains smaller. A Aug. 1932 8 with months Aug. July Aug. number of reports indicate that col “Unadjusted" indexes reflect Aug. July Aug. merely the actual changes which 1931 1932 1932 1932 1931 1932 1932 may or may not be up to the lections have been somewhat larger with 8 usual seasonal expectations. Month Year months than a month ago, but the majority 1931 ago ago of firms state that current settlements are not as satisfacory as they were a Productive activity Manufacturing—total............... 75.8 53.7 56.3 + 4.8 -25.7 -24.4 75.8 52.0 55.6 year ago. Metal products....................... 54.6 26.2 25.3 - 3.4 -53.7 -47.5 57.5 25.4 26.5 Factory employment, payrolls, and Textile products..................... 87.4 60.9 74.3 +22.0 -15.0 -20.5 83.1 56.7 70.5 Transportation equipment.. 51.9 49.6r 41.3 -16.7 -20.4 -10.9 50.1 48.4 40.1 operating time in this district showed Food products........................ 83.6 65.9 69. Op + 4.7 -17.5 -12.5 83.8 65.1 66.9p Tobacco and products.......... 94.1 78.5 82.1 + 4.6 -12.8 -18.3 97.8 86.0 85.4 more than seasonal increases from Building materials................. 41.3 19.4 20.6 + 6.2 -50.1 -39.1 47.5 21.1 23.8 Allied chemical products. . . July to August, owing solely to Penn 99.7 89.6 84.2p - 6.0 -15.5 -12.7 100.3 88.5 84. Op Leather and products........... 125.1 90.0 95. Op + 5.6 -24.1 -19.5 126.4 81.5 97. Ip sylvania industries, since Delaware Paper and printing................ 95.6 75.8r 72.2 - 4.7 -24.5 -19.0 93.1 73.5r Electric power output............ 192.4 167.5 171.8 + 2.6 -10.7 - 7.1 182.8 155.8 70.2 and New Jersey factories registered 163.2 Elec. pwr. used by industries. 136.0 111.9 107.3 - 4.1 -21.1 -11.9 140.1 114.1 110.5 declines. In Pennsylvania factory Factory employment—Penna, + 2.3* -17.3* 72.9 57.2 58.5p employment rose 2 per cent and pay Factory wage payments—Penna. + 4.7* -36.6* 57.0 32.1 33.6p rolls almost 5 per cent. The textile Coal mining. . . industry showed the most striking 62.4 54.0 48.0 -11.1 -23.1 -24.3 61.9 44.6 47.6 Anthracite.. 62 55 48 -12.7 -22.6 -23.4 62 45 48 gains. Leather products such as shoes Bituminous. 65.0 47.8 47.8 0.0 -26.5 -30.0 61.1 42.1 44.9 and miscellaneous goods also reported marked increases. In other groups Building and real estate Contracts awardedf—total......... 70.3 30.3 37.1 +22.4 -47.2 -47.8 68.9 32.7 36.4 Contracts awardedf—residential 25.9 considerable gains in payrolls occurred 18.0 15.0 -16.7 -42.1 -43.2 24.3 18.0 14.1 Permits for building.................... 22.7 4.4 14.7 +234.1 -35.2 -54.9 20.4 5.4 13.2 in such individual industries as steel Mortgages recorded in Phila. . . 37.7 21.1 20.9 - 0.9 -44.6 -28.8 29.8 23.0 16.5 Real estate deeds recorded in works and rolling mills, structural Philadelphia.......................... 68.7 69.8 49.9 -28.5 -27.4 - 4.4 61.8 69.1 44.9 Exclusive of Sheriff deeds iron work, confectionery, glass, and (1930 = 100)........................... -21.8* - 8.3* 69.2 72.9 57.0 wooden boxes. Our employment in Sheriff deeds (1930 = 100)___ - 6.2* + 14.3* 102.2 141.3 Writs for Sheriff sales in Phila.. 1022.8 1092.9 1134.0 + 3.8 + 10.9 + 8.1 981.9 1038.3 132.6 dex number, based on figures covering 1088.6 factories in the three states, was less Distribution Retail trade—sales...................... than 20 per cent and the payroll in 76.6 54.4 52.3p 3.9 31.7 -23.0 60.3 40.2 41.2p Retail trade—stocks............... ’ ’ 71.6 58.9 55.5p 5.8 -22.5 68.0 53.0 52.9p dex 40 per cent below those in August Wholesale trade—sales............... 72.0 56.6 55.5 1.9 -22.9 -19.3 67.3 52.9 52.5 Wholesale trade—stocks........' 66.0 77.1 64.9 1.7 -15.8 77.9 65.0 65.4 1931; this compares with the decline Freight car loadings (Allegheny district) ....................................... of 21 per cent in employment and 38 70.2 45.9 45.6 0.7 -35.0 -27.9 73.7 47.9 Life insurance sales............... .. . . ' 127.0 100.3 103.3 + 3.0 -18.7 -16.1 106.7 47.3 86.8 96.3 per cent in payrolls throughout the New passenger auto registrations 75.3 44.6 43.2 3.1 -42.6 -31.9 82.8 50.4 47.5 country. Output of manufactures in August Business liquidations Number.................................... -15.3* +27.8* +19.4* 150.0 226.4 191.7 Amount of liabilities............. showed exceptional gains over July. -10.4* - 9.5* +63.5* 252.5 255.0 228.4 Our preliminary index number, which Payment of accounts is based on figures from about forty Check payments........................... 92.5 65.3 59.9 - 8.3 -35.2 -31.5 78.6 63.3 50.9 Rate of collections (actual, not important industries covering twoindexes) Retail trade............................... thirds of the total manufacturing out 10.4* -16.0* 26.8 25.1 22 5 Wholesale trade...................... + 2.2* - 2.9* . 52.6 50.0 51.1 put in this district, rose from less than 54 in July to over 56 per cent of the Per cent change from 1923-25 average in August, when (000,000’s omitted in dollar figures) allowance is made for the usual sea Aug. May June July Aug. 1931 1932 1932 1932 1932 Month Year sonal changes. This is a gain of 5 ago ago per cent over the customary increase, thereby indicating a decided improve Banking and credit Reporting member banks ment. Compared with last year, output Loans to customers............. $765 $652 $637 $625 $618 — 1.1 — 19 2 in the first eight months of this year Open market loans and in vestments ............... 597 456 462 462 477 + 3.2 - 20.1 was 24 per cent smaller; the national All member banks—net demand index number, which in August also and time deposits. . . 2,398 1,962 1,962 1,963 1,957 - 0.3 - 18.4 advanced 5 per cent over July, was 23 Bankers' acceptances outstand per cent lower than in August 1931. ing .................................................. 14.4 14.1 13.6 12.6 11.2 -11.1 - 22.2 Production of textiles, which makes Federal Reserve Bank up 26 per cent of the data used in Bills discounted........ 19 63 66 72 65 - 9.7 +242.1 Other bills and securities......... 64 112 134 142 144 + 1.4 + 125 0 the district index number, showed an Reserve ratio............................... 84.3% 62.5% 55.6% 52.6% 53.8% + 2.3 - 36.2 extraordinary gain of 22 per cent over July and was 85 per cent of the Page Three IRON AND STEEL PRODUCTION OUTPUT OF KNIT GOODS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT HOSIERY STEEL ■PIG IRON UNDERWEAR ADJUSTED FOR SEASONAL VARIATIONS 1927 1930 Source: Iron Age volume manufactured in August 1931. Noticeably more than seasonal in creases also occurred in such groups as those comprising food products, tobacco and its products, leather and its products, and certain building materials. While the rate of produc tion of all the groups continued con siderably under former years, the change between July and August was much more favorable than was the case in the past three years. Analyses of important individual lines show that fifteen industries had more than ordinary increases and that sixteen other industries had smaller decreases than between July and August last year. Unusually large gains in production were noted in silk, woolen and worsteds, cotton and knit goods, carpets and rugs, shoes, cement, pig iron, iron castings, sugar and cigars. Output of electric power in August increased more than seasonally. Sales also expanded as they usually do in August, owing to a larger demand by municipalities. Consumption of elec trical energy by industries, when computed on the basis of the actual number of working days, showed more than the anticipated drop. Building and contracting. Awards of building contracts in August increased more than usual and exceeded those of a year ago by 36 per cent. This gain was due principally to larger awards for public works and other buildings of commercial and industrial charac ter; contracts let for dwellings, on the other hand, declined sharply from July and were only about 40 per cent of the total in August 1931. In early September awards generally declined, largely for seasonal reasons, and were running only about one-half of those Page Four 1932 1928 192 9 1930 193 1 Source: United States Bureau of the Census of a year ago. In the first eight months of this year, the value of awards was 45 per cent smaller than in the same period of last year, re flecting both lower prices and indus trial conditions. Estimated dollar cost of proposed building under permits issued in seventeen cities of this district, com puted on the daily basis, rose from $44,000 to almost $109,000; this in dicated a rather favorable tendency since usually there is a decline be tween July and August. But even this sharp increase brought the total only to about 64 per cent of the volume in August 1931. For the year to date, the value of building permits was nearly 55 per cent smaller than last vear and was also much lower than in many other years. Employment in the construction in dustry in twenty city areas of Penn sylvania, fifteen of which are located in this district, in August showed a gain of 7 per cent, payrolls 2 per cent, and working time 6 per cent over July. These increases were due entirely to greater activity in public works and general contracting, inasmuch as building of a more specialized charac ter registered declines. The largest gains in payrolls over July occurred in the Allentown-Lehigh, Lewistown, Sharon-New Castle, Harrisburg, and York-Adams areas, while the largest decreases took place in the Altoona, Clearfield, Kane-Oil City, Sunbury, Wilkes-Barre, and Williamsport cen ters. Agriculture. Agricultural sections of this district have been affected severe ly by a prolonged drought which has threatened the supply of water and parched meadows and pastures to the extent that livestock must be given ad ditional feed. Fall plowing and seed ing also have been delayed on the same account. Estimated yields of tobacco, hay and oats have been re vised upward since August 1, while the harvest of white potatoes and corn is expected to be somewhat smaller than earlier figures indicated. Fruit prospects vary widely but the crop as a whole is expected to be somewhat below the average of the past ten years. The condition of livestock remains generally satisfactory and compares favorably with the average of other years; the number of hogs on farms, however, shows some decline as com pared with September of last year. Cold storage holdings of poultry and cheese increased in this section be tween August and September, while those of butter and eggs declined. As compared with a year ago, stocks of butter alone were larger. Market conditions have improved slightly during the past month, owing to the continued rise in the price of certain farm products. Wholesale prices of agricultural commodities in the country showed an increase of 2.5 per cent from July to August but were less than 23 per cent below the level of a year ago. Coal. Demand for anthracite has slackened since the middle of last month. Sales by retail yards in Phila delphia increased seasonally in August but fell off sharply during the first fortnight of September. Colliery out put increased in August by a smaller amount than was to be expected, and remained at an unusually low level as compared with other years. In early September the weekly output of mines BUILDING CONTRACTS OUTPUT OF SHOES PERCENT PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT v- PHILADELPHIA FEDERAL RESERVE DISTRICT 175 - TOTAL RESIDENTIAL UNITED STATES 1927 1928 1929 1930 Source: United States Bureau of the Census increased seasonally. Shipments last month showed a small gain over the daily average of July, but were about 23 per cent less than in August of last year. Wholesale prices of anthracite increased somewhat from July to August but were over 6 per cent be low the level of a year ago. The market for Pennsylvania bitu minous coal has been somewhat more active of late. Output of collieries, which averaged about 200,000 tons daily during August, showed a small gain over the rate of the preceding month. In the first fortnight of Sep tember the weekly production of mines increased slightly. Shipments during August were substantially larger than in July, but were about 30 per cent smaller than in the same month of last year. Wholesale prices of soft coal in the country declined fraction ally last month and were about 3 per cent lower than in August of last year. Sales of department, apparel, shoe and credit stores were nearly 3 per cent larger in August than in July, but this gain failed to measure up to the usual seasonal in crease by almost 4 per cent. Sales of men’s apparel alone showed a rise of 9 per cent above the customary gain expected for August. Preliminary in quiries indicate a seasonal improve ment in retail business during early September. Compared with a year ago, retail dollar sales were 32 per cent smaller, the sharpest declines occuring in women’s apparel, shoe and credit stores. Sales of department stores also were 27 per cent smaller as against a decline of 25 per cent for the coun try as a whole. This drop may be at tributed partly to the fact that prices Distribution. 1931 1932 1927 1928 1930 1932 Source: F. IV. Dodge Corporation of merchandise generally sold by de partment stores were 17 per cent lower in August this year than last, according to Fairchild’s retail price in dex. Retail food prices in Philadelphia and Scranton declined one per cent between July and August, while com pared with a year ago, the level in Philadelphia was 18 per cent lower and in Scranton 16 per cent lower; the latter being also true of the country as a whole. Inventories of retailers changed little during August, although a 6 per cent increase is usual, and at the end of the month they were 22 per cent less than a year ago. The rate of stock turnover was 9 per cent less rapid in the first eight months of this year than last. Settlements of ac counts were slower than in the pre vious month, the decline in the rate of payment being about 10 per cent; it was also 16 per cent lower than a year ago. Wholesale trade sales of eight lines combined declined about one per cent from July to August, instead of show ing a seasonal increase of like amount. Improvement was reported in gro ceries, hardware, jewelry, and paper, while the remaining four lines failed to measure up to the usual seasonal volume, even though sales of shoes and dry goods showed actual gains over July. In September signs of sea sonal upturn were evidenced by sev eral preliminary reports. Wholesale prices have shown def inite firmness. Twice as many returns indicate advances as those that show declines since the middle of last month. Stocks of commodities did not in crease as much as they usually do by the end of August, and inventory holdings of most dealers were smaller than at the same time in other years. The rate of stock turnover was 5 per cent smaller in the first eight months of this year than last. The rate at which accounts were settled, on the other hand, was 2 per cent higher in August than in July but almost 3 per cent lower than a year ago. Freight car loadings in this section increased slightly from July to August, but the gain was not as large as it should have been for that month. In early September, there was a further seasonal increase in loadings, owing principally to larger shipments of coal, merchandise, and miscellaneous commodities, the latter two classes being made up largely of manufac tured and semi-finished goods. Sales of new passenger automobiles have continued downward and the de cline between July and August was somewhat sharper than usual. Recent quick ening of activity in some lines of busi ness has not yet been reflected in an upward trend in bank loans to cus tomers. Bills discounted by the re serve bank declined further, owing in part to the return of currency from circulation. The excess of currency receipts from the banks over payments to them was more than 8 millions in the five weeks ended September 21, which was the largest return movement for any comparable period of the last five years. Additional funds were ob tained by the banks through a small gain in transactions with other dis tricts and by drawing upon reserve deposits to the extent of 3J4 millions. These funds were required in part Financial conditions. Page Five FREIGHT CAR LOADINGS NEW PASSENGER AUTOMOBILE REGISTRATION ALLEGHENY DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT MERCHANDISE AND — ADJUSTED FOR —I—+ . SEASONAL VARIATIONS,1 MISCELLANEOUS TOTAL UNADJUSTED- 1927 1928 1929 1930 1927 1932 Page Six 1929 1930 1932 1931 Sources: R. L. Polk Company, Pennsylvania Motor List Company Source: American Railway Association to meet Treasury withdrawals and tax collections, which exceeded gov ernment disbursements in this district by 5 millions, but were used chiefly in effecting a reduction of nearly 9 millions in borrowings from this bank. Bills discounted for member banks totaled 54 millions on September 21, the lowest figure since September of last year. The bulk of the recent de cline represented repayments by banks outside of the city; borrowings of these outside banks were 18 millions lower than at the end of July. The reserve ratio of the bank in creased from 54.7 to 55.1 per cent. Cash reserves declined, owing partly to an excess of transfers for the gov ernment over sums gained in the in terdistrict settlements of other trans actions, but the federal reserve note and deposit liabilities together showed a still larger reduction, thereby rais ing the ratio slightly. The decrease in federal reserve note circulation prob ably was due in some measure to re placement by new national bank notes issued under the law enacted a few months ago. In the past five weeks loans to cus tomers at the reporting member banks have shown a further decrease from 618 to 611 millions, but the rate of decline evidenced by these figures was substantially lower than that in the spring and early summer. Invest ments and loans to the open market increased 32 millions. This was due mainly to a rise of 24 millions in hold ings of United States securities. As these banks received 38 millions of new government securities on Septem ber 15, for which payment was made 1928 by deposit credit, a substantial amount must have been sold shortly after the allotment was made. Demand deposits at the reporting banks rose 10 millions from August 17 to September 14, but this gain was lost in the following week, no doubt owing in part to income tax payments, and the net change over the five weeks was a decrease of 3 millions. Time deposits rose slightly. Reporting member banks (000,000’s omitted) Sept. 21, 1932 Loans to customers: On securities............. $ All other.................... Loans to open market. United States securities Other securities............ 306 305 10 225 275 Total loans and investments......... $1,121 Net demand and time 898 deposits...................... Government deposits.. 50 187 Due to banks................ Due from banks........... 110 Aug. 17, 1932 $ 310 308 8 201 269 Sept. 23, 1931 $ 403 360 32 232 321 $1,096 $1,348 900 21 178 100 1,105 43 190 72 The daily average of net demand and time deposits at all member banks in the district declined from 1,963 millions in July to 1,957 millions in August. Deposits at banks in Phila delphia and the larger cities were com paratively stable, but there was a de cline of 5 millions at banks in the smaller towns. Deposits of all member banks, Phila. Fed. Res. District (000,000’s omitted) 1932—Apr............................ $ May.......................... June.......................... July........................... Aug............................ 1931—Aug............................ 1930—Aug............................ 1929—Aug............................ Net de mand Time Totals 956 $1,008 $1,964 1,962 955 1,007 1,962 962 1,000 1,963 1,001 962 1,957 955 1,002 1,169 1,177 1,157 1,229 1,161 1,079 2,398 2,338 2,236 New issues of United States secur ities on September 15 included oneyear certificates of indebtedness bear ing 1J4 per cent interest and five-year notes with a 3j4 per cent coupon rate. Subscriptions received from this dis trict amounted to nearly 500 millions and were about 15 per cent of all those tendered outside of the New York district. Allotments to the dis trict totaled more than 67 millions, of which 17 millions was an exchange for maturing securities; 4 millions was paid for in cash, and 46 millions by deposit credit at subscribing banks. Banks in this district report a de cline during August in outstanding acceptances from $12,602,000 to $11, 191,000. This figure was the lowest since early 1927 with the sole excep tion of one month in 1929. Federal Reserve Bank of Philadelphia (Dollar figures in millions) Changes in— Sept. 21, 1932 Bills discounted for banks in— Philadelphia. . . . $ 10.4 20 other large 17.4 cities................. Other communi 26.5 ties .................... Total bills dis counted ........... $ 54.3 3.3 Bills bought............ United States secu rities ................. 139.4 1.3 Other securities. . . Total bills and se curities ............ $198.3 Fed. res. note cir culation ........... 245.0 Member banks’ re serve deposits. 116.0 Foreign bank de 1.0 posits ............... Government de 3.5 posits ................ Cash reserves......... 201.4 55.1% Reserve ratio.......... Five weeks -$ 1.2 One year -$ 8.5 _ 4.2 + - 3.3 + 13.1 -$ 8.7 + 0.1 +S 9.1 - 5.8 0 0.2 + 83.0 + 0.1 — 4.5 -$ 8.8 +$86.4 11.0 + 78.1 _ _ 3.7 - 20.6 0.1 - 13.0 + — + + 2.6 2.0 5.6 - 42.6 0.4% - 21.5% FEDERAL RESERVE BANK OF PHILADELPHIA Employment August 1932 MILLIONS Employment and wages in Pennsylvania Payrolls August 1932 Per cent change since Aug.* index MEMBER BANK’S ._ _ L — RESERVE DEPOSITS Aug. 1931 July 1932 Per cent change since index Aug. 1931 July 1932 All manufacturing industries (51)....................................... DISTRICT MILLIONS 1928 1929 1930 1931 1932 Percentage change—Aug. 1933 from Aug. 1931 City areas* Building permits (value) Debits Retail trade sales -41.0 -47.5 -22.9 -61.1 -50.0 -38.9 + + - 91.9 78.1 13.3 96.5 10.5 56.9 -28.8 -29.8 -22.5 -39.2 -45.2 -32.8 -24.4 -36.9 -26.9 -39.9 -32.4 -27.4 -33.6 -39.5 - 0.4 -28.0 + 0.8 -30.7 - 69.5 +595.2 - 45.1 - 64.7 +329.4 — 70 2 - 6.8 -25.8 -27.6 -30.4 -30.0 —24 6 -21.1 -27.3 -19.0 Employ ment Allentown............. Altoona.................. Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Scranton................ Trenton.................. Wilkes-Barre........ Williamsport........ Wilmington.......... York....................... Wage payments -17.3 —25.8 -13.7 -22.0 -21.3 -22.3 — 17 0 -20.2 -23.5 “t- 5.3 + 3.7 -13.5 + 0.2 + 3.4 - 0.7 - 2.3 +20.5 + i.i +11.2 + 9.8 - 2.4 +14.2 - 1.2 - 6.1 - 7.4 h 6.3 . - 2.3 - 6.3 - 5.1 -29.7 - 1.6 -16.2 -19.8 - 1.0 +14.0 + 3.0 - 5.1 - 5.2 +541.6 - 13.3 - 40.4 - 42.0 + 30.9 +116.9 + 64.3 + 5.8 +834.7 +103.1 +481.6 +358.6 - 65.1 -14.7 - 5.5 -10.8 -10.4 - 8.7 -11.1 -11.6 - 2.7 - 5.4 -12.6 - 7.2 -11.8 — 11.7 * Area not restricted to the corporate limits of cities given here. -29.3 -22.4 -37.6 -13.0 -13.1 +38.7 _ 9.4 24.6 25.3 — 4.3 0.0 + 2.1 75.0 50.0 52.3 85.3 70.7 45.1 56.7 95.4 65.9 63.9 67.2 90.4 -10.0 -18.6 -13.7 + 3.8 -16.3 -29.9 -25.4 - 5.2 -23.8 -22.5 -37.5 -35.4 +18.1 + 2.2 +20.5 +37.8 + 6.6 +29.6 + 1.1 +13.8 LI.8 — 4.8 + 0.7 +11.9 47.2 33.0 33.1 63.4 58.9 25.2 43.5 51.8 43.0 41.4 39.5 61.1 94.1 94.6 79.1 98.6 92.4 95.9 - 9.3 - 9.5 -16.3 -16.4 - 0.5 *- 6.7 + 1.1 2.8 + 5.3 + 0.3 0.4 + 1.5 76.3 77.5 65.3 82.6 69.2 75.2 - 34.5 45.2 _ 44.6 _ 20.9 _ 27.7 _ 52.5 — 19.9 _ 35.9 _ 41.8 _ 42.4 _ 54.5 - 52.9 17.2 _ 18.8 17.9 — _ 26.1 _ 12.3 - 14.4 42.5 45.6 33.8 56.7 -25.8 -35.8 -37.4 +20.9 _ 5.8 — 3.6 -20.3 + 17.6 21.0 18.8 16.4 38.3 47.1 + 1.0 _ 56.7 - 2.6 _ 59.1 -10.9 + 5.8 +23.5 Lumber products... . Lumber and planing mills.. Furniture............. Wooden boxes........................ 42.7 26.5 45.4 57.3 -29.5 -21.6 -37.9 - 8.5 _ 1.2 + 2.3 4.8 + 3.1 28.2 17.0 30.1 39.2 Chemical products......... 80.7 Chemicals and drugs........... 50.9 Coke.......................... . 58.6 Explosives.................... 63.3 Paints and varnishes........... 79.7 Petroleum refining............. 126.6 - 7.9 -18.8 -10.0 -19.5 - 7.8 - 0.7 _ — 3.1 64.6 0.4 39.0 + 0.7 18.4 2.0 42.7 6.2 51.3 _ - 3.6 119.4 51.1 0.0 _ 46.7 _ 57.7 + 52 - 27.1 +18.1 20.9 — 2 3 _ 33.2 + 2.6 _ 50.0 + 1.7 52.0 + 87 32.9 — 15 5 - 8.4 - 2.8 Leather and rubber products. Leather tanning.................... Shoes........................... Leather products, other... Rubber tires and goods.... 83.3 82.3 94.8 66.6 76.4 -14.0 -19.9 - 2.8 -21.6 -14.9 + 5.8 + 1.2 +14.6 + 5.5 0.7 59.8 55.3 68.7 56.4 76.1 _ _ _ - Paper and printing................. Paper and wood pulp.......... Paper boxes and \rngs.......... Printing and publishing... . 79.6 69.1 61.4 85.8 -11.7 -14.2 -19.5 - 9.9 _ 2.7 — 4.6 + 1.8 2.6 63.2 46.0 45.5 71.5 26.4 _ 32.3 40.0 23.5 Anthracite mining................... Bituminous coal mining.... Canning and preserving........ Construction and contracting Hotels.................................. Laundries........................ Dyeing and cleaning.............. Public utilities..................... Quarrying and non-metallic mining............................. Retail trade............................ Wholesale trade.................... 47.8 -27.0 +10.5 - 0.5 + 4.8 + 6.9 - 4.2 - 3.3 - 2.5 - 1.1 34.6 - 26.7 +19.8 + 2.1 + 2.2 + 2.1 - 6.8 - 6.8 - 6.7 - 2.8 75.3 80.3 -10.5 -10.8 _ + + + + — — - 33.6 + 4.7 23.4 13.9 19.6 22.2 37.0 46.3 38.1 19.4 25.2 35.4 13.1 26.7 29.5 + 4.9 — 0 7 +10.7 + 3.3 +10.4 + 8.4 + 4.4 — 2.5 + 5.0 - 3.0 - 7.1 — 5 3 + 0.7 36.3 43.1 23.6 32.3 28.5 - 5.5 -22.4 -10.0 - 1.8 +10.1 - 1.0 +22.9 +12.2 +39.7 +58.5 +20.9 +36.2 + 9.6 + 0.4 + 3.6 +29.4 +22.7 +22.2 + 0.7 - 3.7 +15.4 + 0.4 - 3.1 - 1.3 + 4.2 + 1.1 +24.9 + 78 -16.4 — — + - 4 2 6 9 46 4.0 -30.6 Aug. 1932 from July 1932 Allentown............. Altoona................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Williamsport........ W ilmington.......... 39.3p 39.8 34.8 20.0 58.6 52.3 - 41.1 50.9 _ 51.1 _ 49.6 _ 53.9 _ 51.4 _ 22.6 _ 1.6 _ 48.5 _ 50.3 - 58.6 60.2 48.9 - 40.3 52.3 20.7p 15.2 _ 24.4 21.6 _ 53.8 11.2 _ 29.1 18.6 _ 66.8 72.1 +112.7 Stone, clay & glass products.. Brick, tile and pottery... . Cement....................... Glass.................................. BANKERS ACCEPTANCES OUTSTANDING EXECUTED BY BANKS IN PHILADELPHIA 0.4 0.0 0.7 1.3 1.7 1.6 2.4 3.8 0.4 1.5 8.7 0.0 0.4 Foods and tobacco. . Bread and bakery products Confectionery............... Ice cream.................. Meat packing. . . Cigars and tobacco............... 1932 + 2.3 -27.0 - 4.9 -23.7 -30.8 -25.3 -14.9 - 3.5 -23.7 -32.1 -33.7 -38.4 -22.4 -15.6 Textile products.................... Cotton goods......... Woolens and worsteds.. . . Silk goods......................... Textile dyeing & finishing. . Carpets and rugs.................. Hats................................... Hosiery................ Knit goods, other.................. Men’s clotning.......... Women’s clothing............... Snirts and furnishings......... 1931 -19.8 48.6 36.7 43.7 45.4 73.2 73.0 60.4 48.1 51 .6 65.7 28.4 55.0 52.5 Transportation equipment... Automobiles..................... Auto, bodies and parts. . . Locomotives and cars.......... Railroad repair shops.......... Shipbuilding......................... BILLS DISCOUNTED 58.5 Metal products.......................... Blast furnaces.................... Steel wk8. and rolling mills. Iron and steel forgings........ Structural iron work............ Steam & hot wtr. htg. app. Stoves and furnaces............. Foundries................... Machinery and parts........... Electrical apparatus............. Engines and pumps............. Hardware and tools............. Brass and bronze products. - 7.5 -10.8 0.0 + 3.7 -19.5 + 4.5 -14.0 - 6.9 - 4.9 - 3.8 +26.5 * 1923—1925 average =100. + 2.7 - 2.8 - 0.2 + 10.2 p-Preliminary figures. Page Seven Index numbers of individual lines of trade and manufacture RETAIL TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT Philadelphia Federal Reserve District Index numbers—expressed in percentages of the 1923-1925 average which is taken as 100 “Adjusted” index numbers make allowance for the usual seasonal changes which result from an un even distribution of business be tween the months of the year. They are the most significant indexes because they show im provement or decline beyond the level usually to be expected. Not adjusted Adjusted for seasonal variations Percentage comparison Aug. 1931 “Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. July 1932 Aug. 1932, with Aug. 1932 Month ago Year ago 8 months Aug. 1931 1932 with 8 months 1931 July 1932 Aug. 1932 60.3 56.2 56.7 68.2 65.6 66.6 40.2 40.8 42.1 42.0 61.3 28.5 41.2p 41.0 50.4p 40.3p 45. Ip 36.2p 68.0 62.2 70.9 86.5 84.4 63.8 53.0 52.4 53.2 59.7 59.8 48.9r 52.9p 50.3 58.9p 63.0 62.5 46.7 Retail trade Sales All stores., Department........... Men’s apparel. . . . Women’s apparel. Shoe........................ Credit..................... 76.6 73 .4 67 9 101.9 80 0 74.0 Stocks of goods All stores... v........... Department......... Men’s apparel. . . Women’s apparel. Shoe........................ Credit.................... 71 .6 66.9 68 .8 98.2 87.0 66.5 54.4 55.3 55.0 63 .4 66.6 41.9 52.3p 53.6 60. Op 60. Op 55. Op 40.2p - 3.9 - 3.1 + 9.1 - 5.4 -17.4 - 4.1 -31.7 -27.0 -11.6 -41.1 -31 .3 -45.7 58.9 57.3r 64.2 77.7 64.3 50.9r 55.5p 54.1 56.9p 71.2 64.4 48.6 - 5.8 - 5.6 -11 .4 - 8.4 + 0.2 - 4.5 -23.0 -21.8 -28.4 -30.3 -24.8 -34.5 -22.5 -19.1 -17.3 -27.5 -26.0 -26.9 Rate of stock turnover 8 months (actual, not indexes) - 8.8 67.3 59.8 93.4 38.6 62.0 83.6 55.2 44.8 69.7 2.29 2.51 -19.3 -16.4 -14.4 -27.7 -40.1 - 9.9 -33.6 -32.5 -23.3 MENS APPAREL STORES Wholesale trade Sales 72.0 Total of all lines.............. 52.9 Boots and shoes........... 100.4 — Drugs............... 41.5 Dry goods..................... 75.6 Electrical supplies.... 85.3 Groceries........................ 62.0 Hardware.................... 50.9 Jewelry........................... Paper......................................... 73. 73.4 55.5 35.0 80.4 31.1 38.5 80.0 37.0 19.8 55.8 - 1.9 - 2.5 - 1.8 - 3.4 -22.8 + 1.7 + 0.8 +43.5 + 8.3 -22.9 -33.8 -19.9 -25.1 -49.1 - 6.2 -40.3 -61.1 -24.0 1 7 Stocks of goods Total of all lines. Drugs....................... Dry goods........ .. . . Electrical supplies. Groceries................. Hardware................ Jewelry.................... Paper........................ 56.6 35.9 81.9 32.2 49.9 78.7 36.7 13.8 51.5r -15.8 — 7 8 -23.4 -17.6 — 10.9 20 3 — 19 2 -15.9 47.5 90.7 38.8 80.8 36.4 74.7 - 6.2 - 7.5 80.5 69.7 67.7 - 2.9 Rate of stock turnover 8 months (actual, not indexes) Pig iron.......................................... Steel............................................... Iron castings................................ Steel castings............................... Electrical apparatus.................. Motor vehicles...................... . . Automobile parts and bodies. Locomotives and cars............... Shipbuilding................................ Silk manufactures.................... Woolen and worsteds.............. Cotton products........................ Carpets and rugs...................... Hosiery........................................ Underwear.................................. Cement........................................ Brick................................... Lumber and products............. Bread and bakery products.. Slaughtering, meat packing.. Sugar refining............................ Canning and preserving......... Cigars.......................................... Paper and wood pulp............. Printing and publishing......... Shoes............. *................ Leather, goat and kid. Explosives....................... Paints and varnishes.. Petroleum products---Coke, by-product.......... . . . . 31 .9 10.7 44.4 22.4 41.2 25.5 19.9 46.6 80.8 36.5 29.6 23 .8r 26.3 52.3 13 .3 18 1 138.6 174.0 104.4 74.8 62.9 38.0 31.5 55.1 55.2 39.8 96.2 86.5 119.7 98.6 69.1 29.7 43 .4 20.8 23.5 12.4 89.7 88.2 97.1 . 159.2 67.1 136.2 21,5j 36.5 25.3 . 93.6 77.5 81.4 67 .8 51.7 46.2 . 101.2 80.7 77.4 . 117.2 94.6 111 .5 . 132.6 85.6i 79.3i 59.9 42.6 45.3i 70.9 61.7 47.5 138.4 135.4 131.6] 46.3 44.8 . 74.3 * Computed from unadjusted indexes. Page Eight 11.9 22.2 29.3 15.2 33.5 22.4 24.0 12.9 136.5 97.1 47.9 33.7 54.8p 89.7 112.0 35.9 18.8 12.5 +11.2 - 0.9 + 14.9 -23.6 - 8.2 - 5.9 - 8.7 - 3.0 -21.6 +29.8 +26.1 + 7.0 +37.7 + 3.7 +13.6 +20.9 - 9.6 + 0.8 - 3 .7s* +10.1 +103. -15.0 + 5.0 -10.6 - 4.1 +17.9 - 7.4 + 6.3 -23.0 - 2.8 - 3.2 p-Preliminary. -62.7 -50.0 -28.9 -67.4 -58.5 -24.3 -54.1 -28.7 - 1.5 - 7.0 -23.8 -38.8 - 0.7 - 6.8 - 6.4 -48.0 -56.7 -46.8 -18.8 + 8.2 -14.4 -41.1 -13.0 -31.9 -23.5 - 4.9 -40.2 -24.3 -33.0 - 4.9 -39.7 r-Revised. 52.5 39.6 74.8 28.9 31.6 78.4 32.9 17 .4 53.0 77.9 115.1 50.8 97.0 86.0 76.9 66.5 82.1 - 5.4 Output of manufactures 52.9 29.4 77.0 24.8 40.9 79.5 35.6 9.4 48.4r -59.4 -51.0 -43.0 -59.0 -43.1 -35.7 - 0.3 -30.0 - 3.0 -20.0 -30.6 -30.9 -19.3 - 5.7 -12.0 -40.1 -49.5 -25.7 —16.6* + 16.5 + s.l -30.7 -18.8 -22.4 -18.5 -13.4 -25.3 -32.4 -16.7 - 3.1 -38.6 65.0 65.4 97.6 106.1 39.6 38.9 80.8 79.9 75.6 76.6 64.9 61.3 54.5 53.7 69.1 69.7 2.99 2.83 9.8 28.1 45.3 20.4 40.0 24.5 44.7 17.7 89.7 38.3 24.9 24.3r 49.2 25.2 13.3 18.3 137.2 168.8 101.3 73.3 64.6 35.9 49.8 27.2 53.0 38.6 83.7 70.9 111.3 81.8 86.4 34.7 45.1 20.0 13.6 25.6 95.4 80.5 76.3 77.6 136.9 68.4 42.1 20.9 97.3 85.2 67.8 49.6 98.2 78.3 125.4 88.0 127.3 75.3j 59.9 41.7 72.3 57.4 139.3 136.1 72.8 45.4 10.5 22.6 28.4 14.6 37 .2 18.8 22.6 13.0 135.1 94.2 49.0 30.5 52.6p 78.0 104.2 44.9 19.5 13.6 77.5 81.8 117.1 20.3p 84 .7 46.2 75.1 119.3 76.Ip 45.3p 48.4 132.3p 43.9 WOMEN’S APPAREL STORES
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