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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT OCTOBER i, 1935 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Total volume of industrial produc tion increased in August by about the usual seasonal amount. Steel output increased more than seasonally, while the output of automobiles and anthra cite declined sharply. Factory em ployment and payrolls increased. Wholesale prices of farm products and metals advanced during August and the first two weeks of September, and prices of wheat and metals increased further in the third week of the month. Production and employment. Indus trial production increased seasonally in August and the Board’s index, which is adjusted to allow for usual seasonal variations, remained un changed at 86 per cent of the 1923 1925 average. Activity at steel mills showed a considerable increase from July to August and in the first three weeks of September was at a level higher than in any other month since February. Automobile assemblies de clined by about 30 per cent in August and showed a further sharp reduction in the early part of September, reflect ing in part preparations for early intro duction of new models. At lumber mills output continued to increase in August. Cotton consumption by do mestic mills increased slightly from recent relatively low levels and activ ity at woolen mills was maintained at a high rate. At mines, output of an thracite decreased sharply in August, while output of bituminous coal showed an increase. Factory employment and payrolls increased between the middle of July and the middle of August by more than the usual seasonal amount. Marked increases in employment were reported for the steel, machinery, lum ber, silk and clothing industries, while at automobile factories employment declined somewhat. The number of wage earners engaged in the produc tion of durable manufactures in August was 6 per cent larger than a year earlier, while the volume of em ployment in other manufacturing in dustries as a group showed little change. Total factory employment was 3 per cent larger than in August 1934. Daily average value of construction contracts, as reported by the F. W. Dodge Corporation, showed little change in August and the first half of September. Contracts for residential INDUSTRIAL PRODUCTION FACTORY EMPLOYMENT building, which earlier in the year had increased considerably, showed a de crease for this period, while the vol ume of public projects increased. Department of Agriculture estimates based on September 1 conditions indi cate a cotton crop of 11,489,000 bales, as compared with the unusually small crop of 9,636,000 bales last year. The indicated crops of corn, wheat, and other grains are considerably larger than last year, when drought condi tions prevailed, and the condition of pastures is above the ten-year average. Distribution. Freight-car loadings increased considerably in August and WHOLESALE PRICES 1930 Indexes of the United States Bureau of Labor Statistics. (1926=100.) By months 1929 to 1931; by weeks 1932 to date. OKS OF DOLLARS MLMDLK tt/ LKtUI 1 BILLIONS OF 001 U.S. Gov't. Securities Other Securities 1932 Index of industrial production, adjusted for seasonal variation. (1923-1925 average =100.) Index of factory employment, adjusted for seasonal variation. (1923-1925 average =100.) 1933 1934 1935 Wednesday figures for reporting member banks in 91 leading cities. Latest figures are for September 18. the first half of September, partly as a consequence of seasonal factors. De partment store sales increased slightly less than seasonally from July to August. Commodity prices. The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, advanced from 79.6 per cent of the 1926 average at the beginning of August to 80.8 per cent in the second week of September and prices of many leading commodi ties, including wheat, silk, copper, lead and zinc advanced further in the third week of the month. Cotton prices de clined considerably in August and showed relatively little change in the first three weeks of September. Bank credit. Excess reserves of member banks declined in the fiveweek period ended September 18, re flecting a temporary increase in the Treasury’s total holdings of cash and deposits at Federal reserve banks and a seasonal increase of money in circu lation, which was partly offset by an inflow of gold from abroad. Total loans and investments of re porting banks in leading cities in creased by $610,000,000 during the five weeks ended September 18. Loans in creased by $100,000,000, holdings of United States Government direct obli gations by $390,000,000, holdings of United States guaranteed securities by $70,000,000, and holdings of other securities by $50,000,000. Adjusted demand deposits of these banks—that is, demand deposits other than Gov ernment and bank deposits, adjusted for collection items—increased by $140,000,000, United States Govern ment deposits by $160,000!,000, and balances due to banks by $270,000,000. Yields on Government securities rose somewhat further during this period, while other short-term openmarket money rates remained at previous low levels. Business and Banking Conditions in the Philadelphia Federal Reserve District The general level of productive ac tivity in the Philadelphia Federal Reserve District was maintained in August. A rise in manufacturing out put a little more than balanced a de cline in coal mining which reflected an unusual drop in the production of an thracite. Industrial output as a whole continued to exceed that of last year. The value of building contracts awarded was substantially larger than in July and a year ago, the greatest expansion in August being in public works, while awards for buildings of the residential type declined materially. Dollar sales at wholesale and retail' did not quite measure up to the usual seasonal volume but for the year to date surpassed those of a year ago. A de crease in sales of new passenger auto mobiles was more than is customary in the month although the number of cars sold during the first eight months was greater than in any like period since 1930. Shipments of merchandise and miscellaneous commodities and coal were larger than in July but so far this year have been slightly below 1934. Combined employment figures for manufacturing and eleven other impor tant branches of trade and industry show little change from those for July. August payrolls, however, were con siderably larger, owing principally to greater activity in manufacturing and bituminous coal mining. Wage pay ments also were higher than a year ago, but the volume of employment was a little smaller. Manufacturing. Current demand for factory products generally has been seasonally active. Sales have increased in most lines since the middle of last month and have been noticeably larger than a year ago. The volume of un filled orders for manufactures has in creased appreciably. Shipments of manufactured goods from the Philadel phia area to other markets have been well maintained during the summer months and the total in August con tinued larger than a year ago. Business in textile lines on the whole has been marked by more active buy ing of finished goods and textile fibers. Prices have advanced since early Au gust. The hide and leather market has shown strength with respect to demand and prices. Improvement in the sale of shoes also has been reported. Conditions in the market for fabri cated metal products, particularly ma chinery, tools, structural materials and a variety of special products, have re flected sustained activity, and unfilled orders have increased since July and are substantially larger than a year ago. Seasonal gains also are noticeable in the case of plumbing supplies, pottery and slate. Activity in brass and bronze products, and stamped, enameled and plated ware has expanded similarly. FACTORY EMPLOYMENT INDUSTRIAL ACTIVITY PENNSYLVANIA PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT CONSUMERS GOODS INDUSTRIAL PRODUCTION ALL MANUFACTURING-------- BUILDING CONTRACTS (wwc) *•* • DURABLE GOODS 19 3 1 Page Two 1932 1933 1934 1935 1936 1930 1931 1932 1933 1934 Orders for paper boxes have been on the increase as they usually are just be fore the seasonal expansion in retail trade activity. Reports continue to show that stocks of finished products at most plants in this section are smaller than last year; inventories of raw materials have been increased somewhat recently through seasonal purchases and seem to be at about the same level as a year ago. Prices of manufactured products have been increased on many articles produced here, according to reports front manufacturers. The price index of manufactures including fuel and lighting materials, compiled by the Bureau of Labor Statistics, on Sep tember 21 was 78.2 per cent of the 1926 average, or virtually unchanged from a month ago; a year ago it was 78.4. Factory employment, wage disburse ments and employee-hours have ex panded since July to a somewhat larger extent than usual, and they re flect chiefly increased activity in iron and steel and their products, and in textiles and clothing. Average weekly earnings in Penn sylvania factories as a whole in August amounted to $20.11 as compared with $18.54 in July and $18.67 in August 1934. Hourly earnings have continued virtually unchanged. The number of hours actually worked by a wage earner averaged 35.0 as against 32.4 a month ago and a year before. The index of employment, relative to the 1923-25 average, rose from 75 in July to almost 77 in August and was 3 per cent higher than a year ago. The payroll index advanced in the month from 58 to nearly 64 and was 11 per cent higher than last year. Operating time in August also ex ceeded that of a year ago by the same percentage as did the payrolls. Pre liminary figures for September indicate that employment, payrolls and work ing time will show further expansion. Output of factory products continued to increase in August, the preliminary index, when adjusted for working days and seasonal variations, standing at 74 per cent of the 1923-25 average as compared with 71 in July and 67 in August 1934. So far this year factory production has been 7 per cent above the level of the same period last year. Industries producing consumers’ goods showed the larger relative gains in the month and as compared with a year ago, but those manufacturing durable goods also contributed to the Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted indexes allow for the usual seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not be typical. Industrial production. . Manufacturing— total............ Durable goods................... Consumers’ GOODs(r)......... Metal products (r)............... Textile products (r)............. Transportation equipment (r)..'. Food products (r)........................... Tobacco and products.................. Building materials(r)................... Chemicals and products............... Leather and products................... Paper and printing(r)................... Coal mining......................................... Anthracite........................................ Bituminous...................................... Crude oil.............................................. Electric power Output.............................................. Sales, totalt..................................... Sales to industries!........................ Adjusted for seasonal variation Aug. June July Aug. August from 1934 1935 1935 1935 Month Year ago ago 74 73 74p 69 71 74p 52 52 53 83 86 90p 58 60 62 80 85 95p 33 33 36 73 75 7.-,p 89 88 84 31 30 28 106 103 102 116 140 128p 83 80 ■so 95 61 38p 97 62 36p 79 54 56p 372 375 365 + 0 + 4 + 1 -j- 5 + 3 + 11 + s — 1 - 4 - 7 — 1 - 9 + 0 -37 -42 + 3 - 3 + 8 + 11 + 5 + 14 + 15 +34 -21 — 4 - 6 - 0 + 4 + 0 + 4 -25 -28 — 2 + 2 198 198 209 201 125 146 - 4 + 1* — 4 + 2* +ii 4- 2* + 11* + 3* + 11* 4-n* + 2* + 8* + 4* 74 57 58 — 0* -l_ 7* — i* + 5* — 1* + 3* 106 116 108 105 105 127 114 122 28 22 35 28 13 7 +21 + 17 + 16 +47 +70 + 12 +n +96 +36 -53 +91 +33 -22 +27 + 3 -63 +23 -19 765 667 946 +42 - 7 - 1 25 11 26 65 6 4 41 115 53 979 20 24 28 16 20 21 26 29 35 21 20 31 9 10 12 5 7 6 44 38 109 76 64 64 765 634 908 144 138 Factory—Wage earners.................... Payrolls............................................ Man-hours (1927-28= 100)......... General (1932 = 100) Employment................................... Payrolls............................................ 4-io* Building and real estate Contracts awarded t—total............. 25 Residential!..................................... 11 Non-residentialt............................ 26 Public works and utilities!.......... 59 Permits for building—17 cities. . . . 7 Mortgages recorded—Philadelphia. 5 Real estate deeds—Philadelphia... Sheriff deeds (1930= 100)............ Other deeds (1930= 100)............ Writs for Sheriff sales—Phila.......... 1019 Distribution Business liquidations 18 13 22 18 7 5 40 23 19 30 19 8 7 39 71 64p 61 61 81 76 70 62 98 99 92 100 Check payments...................... Rate of collections (actual) Retail trade.......................... Wholesale trade................... 52 53 55 63 56 88 53 57 49 68 67 + 8 +10 +21 - 7 — 5 - 1 - 2 + 0 + 1 -12 -13 + i +n 56 67 44 77 96 32 99 120 75 50 50 54 368 + 2 189 + 1* + 6 129 73 69 70 69 73p 74p 59 58 65 78 79 89 p 34 32 34 69 73 72p 96 94 90 34 32 31 107 101 102p 114 127 130p 82 77 78 83 51 38p 85 51 30p 69 48 53p 387 386 376 188 195 191 148 146 143 75 60 60 75 77 58 r 64 58 64 + e 64p - 0 62p + 1 - 2 74p - 2 - 2 — 2 63p + 1 — 2 105 + 6 — 11 +10 90 + 1* + 2* + 6* + 5* + 7 56 + o +10 58 + 3 — 5 52 + 7 +28 + 8* + 9* — 1 — 0 — 1 49 60 71 65 90 89 88 78 54 55 53 +52* — 25* +21* — 40* 46 81 90 46 + 8 54 83 75 68 25 30 70 30 68 27 66 63 80 77 80 + 3 +26 28 72 29 67 30 67 30 66 + 1 — 1 + + 4— + + + + 5* +14* + 15* - 1* + 8* 4- 6* + 5* + i + 4 + 1 + 9 - 8 Prices—United States Wholesale (1926= 100).... Farm products..................... Foods...................................... Other commodities............. Retail food (1913 = 100).. . Philadelphia.......................... Scranton................................ (In millions of dollars) + 5 + 7 + 14* 4-35* 60 63 76 64 107 81 Number...................................... Amount of liabilities............... Payment of accounts 1935 Aug. June July Aur. from 1934 1935 8 mos. 1934 68 67 50 80 54 71 45 78 90 28 98 117 77 51 50 57 357 Employment and wages—Pa. Retail trade—sales............................ stocks.......................... Wholesale trade—sales..................... stocks.................. Life insurance sales............................ New passenger auto, registrations . Hotels—Occupancy—1934= 100. . . Income, total “ Freight car loadings—total............. Merchandise and miscellaneous. Coal......................................... Not adjusted Per cent chimge 1* 3* 3* 0* 1* 1* 0* 72 + 8* 76 +27* 70 4-21* 74 - 1* 78 +13* 113 4- 8* 120 + 7* 118 70 49p 58 55 77 70 68 62 102 B5 128 113 106 90 102 77 62 55 58 58 77 43 61 45 52p 59p 70p 64p 88 99 90p 82p 58 60 50 69 61 80 79 80 78 77 79 83 82 85 78 78 78 123 122 123 126 125 127 125 123 124 % change from Aug. 1934 May 1935 June 1935 Julv 1935 Aug. 1935 S $ $ $ $ Month ago Year ago Banking and credit Federal Reserve Bank Bills discounted.............................. Other bills and securities............. Member bank reserves................. Reserve ratio (per cent)............... Reporting member banks Loans to customers........................ Other loans and investments.... Total (gross) deposits................... Rankers’ acceptances outstanding. 5 168 198 66.4 $454 608 13.7 i 1 178 227 67.4 1 181 226 66.6 X 181 232 67.1 0 0 +3 +1 -80 + 8 + 17 + 1 $417 670 1,318 12 .9 $417 674 1,307 12.2 $414 668 1.300 12.9 -1 “I -1 +6 — 9 +10 171 221 68.5 $416 664 1,322 1.2.5 * Computed from data unadjusted for seasonal variation. ! 3-month moving daily average centered at 3rd month. - 6 p—Preliminary. r—Revised. J Not included in production index. VALUE OF RESIDENTIAL BUILDING CONTRACTS OUTPUT OF TEXTILE GOODS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT APARTMENTS AND —— HOTELS----- S SILK WOOLENS AND V “ WORSTEDS 5 ONE AND TWO FAMILY DWELLINGS COTTON 1931 1932 1933 1934 general advance. Increased output in some of the textile lines, such as silk manufactures and hosiery, was chiefly responsible for the gains in the con sumers’ goods industries in August while the automotive, railroad equip ment and shipbuilding industries as a group registered the largest gain among those making durable goods, although blast furnaces, steel works and iron foundries also reported more than sea sonal increases. Other durable goods industries registering sizable gains were explosives, coke and bricks. The leather and shoes group did not meas ure up to seasonal expectations; this also was the case in the groups com prising food, tobacco, building mate rials and chemical products. Output of electric power declined in August but was one per cent higher than in August 1934 and 2 per cent larger during the first eight months of this year than in the same period last year. Sales for all purposes were somewhat higher in the month and 2 per cent above last year. Con sumption of power by industries decreased although ordinarily .a small increase is to be expected; how ever, the August volume was 11 per cent greater than a year ago and for the year to date was 6 per cent higher than in the same period last year. Production of anthracite declined sharply in August, contrary to the usual upward tendency and shipments fell off correspondingly from the July level. In early Septem ber some increase in output was indi cated by preliminary figures. Pro ducers’ stocks of anthracite fuel were 51 per cent larger on August 1 than a month earlier and supplies at retail yards showed a gain of about 10 per Coal and other fuels. Page Four 1935 1933 1936 cent in this period; as compared with a year ago, however, they were smaller by 17 and 20 per cent respectively. Output of bituminous coal increased about 3 per cent more than usual in August, following a sharp drop the month before. Shipments also showed a substantial increase over July, reflect ing increased buying, largely for stor age. In the first half of September production was well maintained. Pro duction of bituminous coal was one per cent larger in the first eight months this year than last but that of anthra cite decreased 13 per cent. Output of by-product coke showed a gain of 8 per cent from July to August, following a downward trend for several months. Production of gas and fuel oils declined further during August and for the year to date was 7 per cent smaller than in the same interval of 1934. (Output and shipment figures are daily averages) Per cent August change from 1935 Month Year ago ago Anthracite Production.............tons 96,000 Shipments..............tons 97,679 Stocks........... 1000 tons 1,462f Prices___ (1926-100) 78.6 Employment.......... No. 66,476 Bituminous Production.............tons 251,000 Shipments.... No. cars 18,963 Prices___ (1926=100) 96.0 Employment.......... No. 121,724 Coke Prod... (1923-25 =100) 82.8 Prices___ (1926=100) 88.6 Gas and fuel oil Prod... (1923-25 =100) 92.2* Prices___ (1926=100) 64.4t -29 -23 +51 + 2 -22 -28 -21 -17 — 2 -21 +10 +21 - 1 + 6 — — - + s 0 +22 + 4 - 2 0 - 8 + 5 2 2 0 5 Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. f July. Wholesale prices of fuel and lighting materials declined in August, owing to decreases in quotations for bitumi nous coal and certain other products which more than offset a rise in anthra 1934 1935 cite prices. In early September the group index declined; on September 21 it was 74.8, according to the Bureau of Labor Statistics, as compared with 75.4 four weeks earlier and 75.5 a year ago. Building and real estate. The value of all building contracts awarded in this district in August totaled $8,973, 000, a gain of 25 per cent over July and an increase of 39 per cent as com pared with a year ago. The most pronounced improvement in the month occurred in the value of contracts let for public works and utilities, which accounted for about 23 per cent of the August contract total. Awards for such non-residential structures as edu cational, commercial and certain un classified buildings also were larger in August than in July, while those for residences including one and twofamily dwellings and apartments and hotels declined sharply. Thus far this year, however, the dollar volume of awards for family houses has shown a large increase over a year ago, and in this period constituted nearly 28 per cent of all contract awards, as com pared with 16 per cent in the first eight months of 1934. Building contracts Philadelphia Federal Reserve District * * dr Per cent August change 1935 (000’s From 1935 omit month from ted) 8 mos. ago 1934 Residential............................. $2,430 - 34 Apts, and hotels............... 154 - 74 Family houses................... 2,276 - 26 Non-residential..................... 4,496 + 57 Commercial........................ 1,488 + 87 Factories............................. 776 — 7 Educational....................... 471 +121 All other............................. 1,761 + 74 +33 + 3 + 9 -11 -52 +63 Total buildings............. $6,926 Public works and utilities.. 2,047 +219 +12 -63 Grand total................... $8,973 + 25 -22 +27 Source: F. W. Dodge Corporation. A RETAIL TRADE SALES SALES OF NEW PASSENGER AUTOMOBILES PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT REGISTRATIONS PERCENT 1931 AV<a =100 s states \ :d . 200 SALES OF APPAREL AND SHOES fi «n 150 —Tl— I \ 1\ •1 ; Ann phi a FEDERAL RESERVE phii \ •1 jj DISTRICT \ \ ■I 100 1 •1 DEPARTMENT STORE ~~ SALES ' V ;/ « \\ V| •/ y. ADJUSTED rpR SEASONAL VARIATION 1930 1931 1932 1933 Operations on building contracts awarded earlier this year continued to expand in August, as indicated by ad ditional gains in employment, payrolls and working time. Street and high way construction fell off sharply from the July level, while activity in mis cellaneous types of contracting work showed some increase in August. Ordinary conveyances of real estate increased in August in the city areas of York, Wilkes-Barre and Scranton but showed declines in most of the other sections. The value of mort gages recorded in Philadelphia de creased less than usual from July to August but was 19 per cent smaller in the first eight months this year than last. Agriculture. Growing conditions for most crops in this district have been generally favorable since the middle of last month. Heavy rains in early September stimulated the growth of pastures and late forage crops but were injurious to ripening tomatoes. Light frosts have occurred in a few of the northern counties but thus far very little damage has resulted. Harvest ing operations and other field work, including fall plowing and seeding, are progressing at about the normal rate. Department of Agriculture esti mates, based on the September 1 con dition of important field crops in this section, indicate that, with the possible exception of corn and hay, yields this year will be below the average of the five years, 1928-32. As compared with last year’s harvest, production of white potatoes will be smaller, while that of corn, wheat, oats, hay and tobacco is expected to show some increase. In dications now are that yields of or chard fruits will be considerably larger this year than last and the ap 1934 0 I93S I930 ple crop is expected to compare favor ably with the five-year average. Wholesale prices of most farm prod ucts have increased further and con tinue at substantially higher levels than last year, as shown below: Pennsylvania United States Wholesale prices of farm products (August 1909-July 1914 = 100) All farm commodi ties ...................... Grains..................... Fruits and vege tables .................. Meat animals.... Dairy products. . . Poultry and prod ucts...................... Miscellaneous.... Per Per cent cent Aug. change Aug. change 1935 1935 index from index from Aug. Aug. 1934 1934 101 80 + 9 — 11 106 96 +10 — 9 78 118 108 — 24 +69 + 3 87 129 98 — 14 +90 + 1 111 65 +25 -17 111 102 +29 — 18 Source: U. S. Department of Agriculture. Distribution, trade and service. Total freight car loadings in this sec tion increased 5 per cent more than it usually does from July to August, owing principally to larger than sea sonal gains in shipments of merchan dise and miscellaneous commodities and coal. Loadings of grain, live stock, coke and ore also were main tained above their customary level in August, while those of forest prod ucts declined. Rail freight consisting largely of manufactures originating in the Philadelphia industrial area de clined slightly in August but continued in somewhat larger volume than a year ago. Total dollar sales of eig'ht wholesale lines declined 2 per cent from July to August after allowance is made for the customary seasonal change. Im provement in the sales of shoes, drugs, hardware and paper was more than offset by the failure of dry goods and jewelry to increase as much as usual and by lessened activity in the sales 1931 1932 1933 1934 1935 of groceries and electrical supplies. As compared with last year, aggregate sales in August were about 2 per cent smaller but in the first eight months this year they were 4 per cent larger than a year ago, reflecting partly higher prices. Early reports for Sep tember indicate increases in demand for dry goods, hardware and jewelry. Retail sales of department, apparel, shoe and credit stores combined showed a slight decrease from July to August after allowance is made for the number of trading days and the usual seasonal change. At 64 per cent of the 1923-25 average, our seasonally adjusted index in August compared with 60 a year earlier. Dollar sales in the first eight months this year were about one per cent larger than a year ago. Demand for general merchan dise has improved seasonally in Sep tember, according to preliminary re ports. Inventories of merchandise in both channels of trade increased about one per cent more than usual from July to August but in each case they were 2 per cent smaller than a year earlier. The rate of stock turnover at whole sale was one per cent and at retail 5 per cent more rapid in the first eight months this year than last. At wholesale establishments collec tions during August failed to main tain their customary seasonal level by about one per cent, while at retail* stores they increased somewhat more than usual. Compared with a year ago, the ratio of collections to balances outstanding was 8 per cent lower at wholesale but 9 per cent higher at re tail. Sales of new passenger automobiles, as measured by registrations in this district, declined by a larger percent Page Five age than usual from July to August but continued at a higher level than a year ago. At 89.6 per cent of the 1923-25 average, our seasonally ad justed index of registrations in August compared with 100.2 the month before and 81.1 a year ago. The number sold thus far this year was 28 per cent larger than in the first eight months of 1934 and exceeded that of any like period since 1930. Activity of commercial hotels, ex clusive of hotels at summer resorts, increased in August, following a sea sonal decline since April. Details follow: Hotel business Philadelphia Federal Reserve District Room occupancy.... Per cent of capacity used: August 1935........... 41.5 July 1935................. 38.7 August 1931........... 40.0 Income from: Guest rooms........... Food......................... Other sources......... Total revenue. . . Aug., per cent 1935 change from from Month Year 8 mos. 1934 ago ago -0 +i — 0 + 2 + 8 +7 +2 +8 + 3 + 2 +13 + 8 + 8 +12 . +6 + 5 + 9 Banking conditions. Loans of the re porting member banks declined 8 mil lions in the four weeks ending Sep tember 18. Six millions was in those made without security collateral to cus tomers; such loans were at their high est points this year in mid-summer and at present are 12 millions or 5 per cent smaller than a year ago. Despite the decline in loans, deposits increased 47 millions to 1,353 millions, reaching the highest point with one exception in the past year and topping the figure of a Reporting member banks (000,000’s omitted) Loans on securities: To brokers and dealers in N. Y. City.............. * To brokers and dealers elsewhere................... To others.......................... Sept. 18, 1935 Changes in Four weeks 13 * 0 One year -* 5 12 153 - Total loans on securities.. * Acceptances and commer cial paper......................... Loans on real estate.......... Other loans.......................... 178 —* 1 Total loans...................... * U. S. Government obliga tions................................... Obligations fully guaran teed by U. S. Gov’t.. . . Other securities.................. 441 -$ 8 -* 51 282 + 12 13 89 285 + + 21 69 173 — Total loans and invest ments ............................ *1,097 Reserve with Federal Re serve Bank...................... 178 Due from banks................. 161 Deposits: Interbank bal... Demand............. Time................... United States. . Other.................. 0 1 1 1 5 4 33 -* 42 + — 3 0 12 « 9 } + 91 +$19 +* 27 + 6 + 15 + + 290 748 271 36 8 + 8 + 35 + 3 + 1 0 Total (gross) deposits. . . *1,353 +*47 DigitizedPage Six for FRASER _ — + — — 57 40 47 59 29 25 3 +$149 year ago by 149 millions. In the past four weeks these banks have added 6 millions to their reserves and 15 mil lions to balances held with other banks, and have increased their investment holdings by 27 millions. Of the latter, 12 millions was in direct issues of the United States, which appeared to re flect mainly new securities allotted in September. t The flow of banking funds in this district, given in the accompanying table under the caption “Member bank reserves and related factors,” was dominated by a sale of securities on the part of the Reconstruction Finance Corporation and by a security flotation operation. Both involved substantial transfers to this district, one directly increasing Treasury receipts here and the other accounting largely for the rise in miscellaneous deposits at this bank, which include outstanding checks issued by it. The transfers described above did not affect directly the reserve position of member banks here. If they should be removed from the tabulation, it would be shown that the supply of funds was increased by a 2 million ex cess of Treasury disbursements over local receipts and by a 2y2 million re duction in the unexpended capital funds of this bank. On the other hand the absorption of funds through a rise of several millions in “Other” deposits at this bank and an unfavorable bal ance of about 3 millions in interdistrict commercial transactions also would be revealed. As a result member bank reserve deposits decreased over 2 mil lions in the four week period, although the highest point on record was attained in the course of it. The decline in unexpended capital funds of this bank reflected chiefly a reduction in the capital stock and cor responding payments to the members, in conformity with that provision of the new banking act which requires a member bank to surrender any reserve bank stock held in excess of the amount to which its capital and surplus en title it. Local Treasury operations included a number of transactions that reached substantial figures. Bulking large among the disbursements were relief funds and interest payments, while re ceipts included income taxes and cash payments for new security issues. The inflow and outflow of currency and coin were about in balance over the four weeks as a whole. A rise in Federal reserve note circulation re flected chiefly the replacement of na tional bank notes, which are being retired as they are received. The re serve ratio of the bank rose from 68.5 to 71.3 per cent. There was little net change in the bill holdings of this bank between Au gust 21 and September 18, other than a rise of nearly half a million in out standing industrial advances. The total of loans and commitments ap proved by the bank to provide working capital for established businesses moved sharply upward from about 16 millions to over 22 millions. For all member banks in this district the average excess of reserves over legal requirements rose from 88 millions in July to 96 millions in Au gust; with one exception this was the highest on record. The average of such reserves held was 232 millions in August, and nearly 244 millions in the first twenty days of September. Federal Reserve Sept. 18. Bank of 1935 Philadelphia (in millions of dollars) One year +$0.0 - 0.0 + 0.5 - $4.7 - 0.1 + 4.2 0 0 + 10.0 - 0.4 +*0.5 + $9.0 248.3 + 5.4 + 248.7 - 2.2 + 57.1 5.3 1.9 59.7 402.2 71.3% + 3.1 - 0.5 +52 5 +56.2 + 2.8% — 2.7 + 0.7 + 54.2 +103.6 + 4.9% Bills discounted.......... * 0.5 0.5 Bills bought................. Industrial advances. . 4.3 United States securi ties ............................. 177.1 Other securities........... .0 Total bills and se curities .................. Fed. res. note circula tion ............................. Member bank reserve deposits.................... U. S. Treasurer—-gen eral account............. Foreign bank deposits. < )ther deposits............. Total reserves............. Reserve ratio............... Changes in Four weeks *182.4 4.7 MEMBER BANK RESERVES AND RELATED FACTORS Changes in weeks ending—• Philadelphia Federal Reserve District (In millions of dollars) Changes in four weeks Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sources of funds Reserve bank credit extended in district.......................... Commercial transfers (chiefly interdistrict).................... Treasury operations................................................................ - 1.0 - 1.2 -11.7 +1.6 +6.2 -7.0 + 1.0 + 4.9 + 9.3 - 2.0 +52.9 - 5.3 - 0.4 +62.8 -14.7 Total........................................................................................ — 13.9 +0.8 + 15.2 +45.6 +47.7 0.6 ’ +2.5 — 1.1 9.4 -0.5 3.9 0.0 - 0.1 — 0.5 + 17.9 - 0.1 — 2.1 - 1.4 - 9.6 +57 .0 - 0.4 — 0.0 - 2.2 +52.5 - 2.6 +15.2 +45.6 +47.7 Uses of funds Currency demand.................................................................... Member bank reserve deposits............................................ “Other” deposits at reserve bank...................................... Unexpended capital funds of reserve bank...................... Total....................................................................................... + -13.9 +0.8 Employment and Payrolls in Pennsylvania RESERVE DEPOSITS OF LICENSED MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS (All figures are rounded from original data) Manufacturing Indexes TOTAL Employment* Employehoursf Payrolls* (Indexes are percentages of the 1923—25 average Per cent Per cent group indexes are weighted Aug. change from Aug. change from 1935 1935 proportionately.) index Aug. July index Aug. July 1934 1935 1934 1935 EXCES5 OVER LEGAL REQUIREMENTS All manufacturing....... 1933 1935 1936 LOANS AND INVESTMENTS REPORTING MEMBER BANKSPHILA. FED RES. DISTRICT Tron, steel and products. b on-ferrous metal prods. 1 ransportation equip.. . 1 extiles and clothing.... Textiles.................... Clothing.......................... Food products................... Stone, clay and glass. . . . 1 -umber products............. Chemicals and products. Leather and products. . . Paper and printing.......... Printing.......................... Others: Cigars and tobacco. . . Rubber tires, goods. . . Musical instruments. . 77 + 3 64 + 1 102 + 6 50 — 9 100 +10 97 +12 111 + 2 103 + o 74 + 5 61 + 7 83 - 6 99 + 8 90 + 1 83 + 1 66 - 4 71 - 7 49 +17 +2 +2 +i -1 +5 +4 +7 +0 -0 -0 -0 +3 +0 -0 64 57 97 35 86 85 90 90 56 48 72 91 79 76 -0 54 0 40 Aug. 1935 change from Aug. Julv 1934 1935 +ii +11 +11 +13 +17 +18 + 5 +25 -12 + 8 — 20 +16 +19 +20 +23 +22 + 2 + 11 + 2 — 0 +19 + 4 +17 + 6 — 1 + 2 +12 + 3 + 6 + 3 + 4 + 2 +22 +26 + 2 + 3 +15 +22 + 4 +14 +10 +12 + 8 + 9 +14 +16 + 8 + o + 4 + 6 + 3 + 3 + 4 - 0 — 6 — 4 — 15 + 9 4-12 +11 +17 + 5 + 5 + 9 + 3 MILLIONS * Figures from 2306 plants. f Figures from 2079 plants. OPEN MARKET LOANS General Index Numbers AND INVESTMENTS Covering twelve branches of trade and industry (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) LOANS TO CUSTOMERS General index 1933 1935 Percentage change—-August 1935 from August 1934 City areas* Manufacturing Employ ment Wage payments Building permits (value) Debits Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ T renton................. W ilkes-Barre.... W illiamsport... ilmington.......... A ork....................... + 2 — 9 +« - 3 +13 + 6 +10 +16 — 7 + 4 + « - 3 + 2 +n -18 + 9 +22 +20 + 12 +12 +16 + 4 + 9 +24 — 2 + 9 + 76 + 30 + 257 — 33 + 79 + 82 + 45 + 58 — 21 +1065 — 79 + 220 + 196 +17 + o +16 +14 +15 +29 +23 + 4 +21 + 4 +20 +19 +14 +11 +17 + 6 + 4 + 1 + 1 + 8 + 2 + 1 + 4 Allentown............. Altoona................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre... Williamsport........ AV ilmington.......... York....................... + 4 + 1 — 0 — 0 + 4 + 1 + 4 +ii + 0 + 5 + 2 + 1 + 1 — + — — — (weighted)___ Manufacturing.................... Anthracite mining...................... Bituminous coal mining............ Building and construction........ Quarrying and non-met. mining Crude petroleum producing. . . Public utilities....................... Retail trade............... Wholesale trade. . . Hotels....................... Laundries................... Dyeing and cleaning.................. Employment Aug. 1935 index 105 121 62 115 69 104 198 90 100 104 101 95 94 + 5 +11 +21 +22 Per cent change from Aug. 1934 July 1935 — + + 1 3 —21 — 5 — 18 -16 + 19 - 0 + 1 + 2 - 8 — 0 - 3 0 2 -22 + 6 - 3 — 2 1 — + o - 3 + o - 0 - 2 — 4 Payrolls Per cent change from Aug. 1935 index Aug. 1934 + 5 +11 -28 -14 — 4 122 155 53 124 66 142 175 92 100 98 97 94 96 July 1935 + 7 +11 -25 +38 — 1 + 8 + 1 +2 — 0 3 + +0 — 6 — 9 + + + + — + — 6 3 2 4 4 3 2 Retail trade sales INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUFACTURING AND NON-MANUFACTURING INDUSTRIES AND SERVICES PERCENT PAYROLLS + 3 August 1935 from July 1935 + 10 +10 + 2 + 13 +17 + 5 +28 +12 +10 + 11 + 1 + 2 + 174 66 + 78 45 + 20 + 36 + 121 + 23 85 + 178 39 + 17 + 4 6 2 8 3 2 9 1 - 3 + 2 + 4 — 3 -21 -10 EMPLOYMENT +10 +20 — 1 — l + 3 — 6 1932 * Area not restricted to the corporate limits of cities given here. 1933 1934 1935 Page Seven Index numbers of individual lines of trade and manufacture WHOLESALE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT ADJUSTED TOR SEASONAL VARIATION TOTAL .SALES PERCENT Philadelphia Federal Reserve District ............. Index numbers: percentages of the 1923-1925 average taken as 100 Per cent change Unadjusted indexes reflect merely the actual change which may or may not ‘Vug. Tune July Aug. August from 1935 Aug. from 1934 be typical. 1934 1935 1935 1935 VIonth Year 8 mos. 1934 ago ago 25 BOOTS AND SHOES Not adjusted Adjusted for seasonal variation Adjusted indexes allow for the usual IMS-ISAVG. 75 Aa rJ\A A zXt A A June July Aug. 1935 1935 1935 r V 25 DRUGS Retail trade Sales Total of all stores........................... Department................................. 60 63 71 69 Women’s apparel....................... Shoe............................................... Credit............................................ 93 52 51 87 71 71 63 54 61 52 Stocks of goods 61 75 54 69 61 50 74 87 53 68 + 1 + 2 -20 + 3 90 +12 59 74p + 9 62 p 51 p + 1 0 3* 2 2 5 - 2 - 4 + 10 — 5 — 4 - 1 49 48 45 63 43 48 70 66 70 85 81 67 49p 46 52 56 51 49 52p 49p 45p 75p 44p 53p 60 50 56 83 60 73 6 + + 2 + - 1* + + 20 + + 3 — + 10 + 64p 64p - 0 62 65p + 4 —13* 85 11 Op +30 56 54p — 4 75 50p -26 58 50 63 78 53 67 55 46 60 66 49 68 59p 48p 79 57 73p 125 .. STOCKS^ \,A fJ v 100 W~\, v— 75 50 DRY GOODS 75 50 SALES'^’-^ 25 Rate of stock turnover + 2.55 2.43 Wholesale trade ELECTRICAL SUPPLIES Sales Total of all lines............................. 76 81 Boots and shoes.......................... 51 55 Drugs............................................ 84 91 Dry goods.................................... 42 37 Electrical supplies...................... 86 101 Groceries...................................... 103 109 Hardware..................................... 44 50 .Jewelry.......................................... 35 44 Paper............................................. 62 67 125 76 41 88 38 85 105p 47 37 64 74p 49 88 34 77p 104p 48p 35 68p Stocks of goods 70 18 22 108 112 45 42 75 101 72 83 62 67 48' 56 61 62 26 24 97 107 38 40 94 86 67d 66p 69 70p 46 49 57 61 — 2 +20 + 0 -10 - 9 - 1 +1 — 4 + 6 + + + + + 2 + 4 71 3 + 0 58 5 + 1 78 19 — 9 39 71 11 + 1 i + 6 101 9 + 8 39 31 1 + 11 11 + 5 59 77 70 70p 47 34 56 87 83 82 34 29 32 83 69 63p 111 106p 102p 52 46 43p 37 25 31 64 61 65p 100 STOCKS ■*—'"'V 75 .1 \L./ Jh, jfl \ ravT 50 25 65 24 112 49 80 67 62 53 58 + 1 — 2 - 5 + 11 +10 - 1 + 6 - 12 — 8 + 16 — 2 - + 2 + 6 - 5 + 12 + 3 + 2 9 68 17 105 42 99 76 69 53 61 62 26 96 38 94 62p 69 53 61 64p 26 110 43 92 61p 69p 54 59 GROCERIES 150 125 SALES 100 A.*./ 75 Rate of stock turnover + 1* 3.67 3.65 STOCKS 50 Output of manufactures Iron castings........................................ Steel castings....................................... Electrical apparatus (r)..................... Motor vehicles (r)............................... Automobile parts and bodies.......... Locomotives and cars(r).................. Shipbuilding......................................... Silk manufactures (r)......................... Woolen and worsteds (r)................... Cotton products............................. . . Carpets and rugs(r)........................... Hosiery.................................................. Underwear............................................ Brick (r)................................................. Lumber am products(r).................. HARDWARE 24 32 26 r 33 55 57 48 50 53 59 64 67 51 62 56 69 77 75 76 9 13 11 15 37 39 42 47 18 29 18 16 116 79 75 78 83 103 74 92 88 81 40 81 38 41 43r 43 63 132 133 131 103 121 89 105 107 114 124 125 40 43 37 28 31 33 34 36 19 23 23 23 Slaughtering, meat packing............. 104 68 69 69 Sugar refining...................................... 103 39 106 115 Canning and preserving................. 55 60 65 66p Cigars.................................................... 89 89 87 84 Paper and wood pulp(r)................... 56 61 58 60 Printing and publishing.................. 82 87 84 84 128 155 140 132 Leather, goat and kid...................... 103 105 126 117j 81 78 70 81 68 78 78t 71 Petroleum products......................... 132 140 136 !33j Coke, by-product............................. 69 80 78 84 * Computed from data unadjusted for seasonal variation. Page Eight + 37 + 19 + 28 - 17 + 10 - 12 + 25 - 38 - 33 + 12 + 103 + 13 +110 + 35 + 16 - 28 + 17 + 19 - 3* + 0 - 34 + 8 + ii + 2 + 21 — 4 - 6 + 5 + 9 - 0 + 3 -10 + 6 - 8 + 13 0 +15 — 9 + 5 +27 + 5 + 8 -10 + 1 +16 +11 + 9 + 4 +25 — 8 — 2 — 1 +17 + 0 -24 + 5 + 0 - 3* — + + — + + — — — — 17 3 10 8 25 10 13 10 4 1 + 81 21 49 48 65 76 12 35 29 115 89 41 34 58 78 100 50 32 21 87 89 89 59 95 56 79 141 + 5 + 123 + 15 + 19 — 9 + 2 + 3 1* — 20 — 18 — 1 —■ 1 + 6 + 1 + 4 99 — 1 7 — 81 + 3 69 - 2 + 1 0 132 + 8 + 22 1+ 1 68 p-Preliminary. 30 52 52 53 77 11 39 18 78 70 78 39 126 103 114 52 34 24 90 65 42 43 96 61 86 122 106 78 80 141 80 24 r 50 57 55 79 11 40 16 73 81 82 38r 121 85 103 44 33 25 87 62 108 54 94 55 82 144 111 69 73: 137 76 r-Revised. 29 58 62 54 84 11 44 18 78 100 83 38 120 105 116 36 37 25 84 61 99 59p 90 60 81 150 112p 81 73 134p 83 100 STOCKS 75 X-N. r—•• .... 50 25 JEWELRY 100 75 ' 50 STOCKS /<VI vr> 25 SALES PAPER 100 75 N........ SALES 50 25 1932 1933 1934 1935 100
@FedFRASER