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Tr______________ ________ THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT OCTOBER i, 1936 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States Industrial activity increased season ally in August, and there was a sub stantial increase in factory employ ment and payrolls. Commodity prices, which had advanced for three months, showed little change after the middle of August. Board’s index of industrial production, which makes allowance for usual sea sonal movements, remained unchanged in August at 107 per cent of the 1923 1925 average. Output of steel in creased by more than the seasonal amount and the higher level was main tained in the first three weeks of Sep tember. Production of automobiles was sharply reduced as plants were closed for inventory taking and for mechanical changes in connection with the introduction of new models. Out put of nondurable manufactures in creased further in August, reflecting chiefly continued expansion in activity at textile plants and shoe factories. At bituminous coal mines output increased less than is usual at this season and at anthracite mines production declined. Output of petroleum showed an in crease. Factory employment rose further between the middle of July and the middle of August by an amount larger than is usual at this season. There were substantial increases in working forces at establishments producing tex tiles and wearing apparel and smaller increases in most other lines, partly offset in the total by a decline in em ployment in the automobile industry. Factory payrolls increased. Value of construction contracts, which had increased sharply in July, declined somewhat in August, accord ing to the figures of the F. W. Dodge Corporation. The Value of non-residential projects was smaller than in July but larger than in other recent months. Residential building increased considerably, reflecting a marked in crease in contracts for apartments, sev eral of which were publicly-financed projects. Awards for single-family houses, which have accounted for most of the increase in residential building during the past year and a half, showed little change in August. Agriculture. Department of Agricul ture crop estimates based on Septem ber 1 conditions were about the same as the estimates made a month earlier, except for a sharp decline in prospects for cotton. Prospective output of lead ing crops, with the exception of cotton and winter wheat, is considerably smaller than last year, but in comparison with the drought year 1934 it is larger, except for corn and potatoes. Distribution. Freight-car loadings of most classes of commodities showed about the usual seasonal increase from July to August. Shipments of grain, however, declined sharply and the in crease in total loadings was less than seasonal. Department store sales in- INDUSTRIAL PRODUCTION FACTORY EMPLOYMENT AND PAYROLLS MEMBER BANK CREDIT Production and employment. The WHOLESALE PRICES Index compiled by the United States Bureau of Labor Statistics. By months, 1929 to 1931; by weeks, 1932 to date. Latest figure is for week ending September 19, 1936. Employment Payrolls^ Index of physical volume of production, ad justed for seasonal variation. Indexes of number employed and payrolls, without’ adjustment for seasonal variation, lndexes'compiled by the United States Bureau of Labor Statistics. Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934 to September 16, 1936. Loans on real estate, loans to banks, and acceptances and com mercial paper bought included in total loans and investments but not shown separately. Page One * creased by less than the usual amount and the Board’s seasonally adjusted index was 86 per cent of the 1923-1925 average as compared with 91 per cent in July and 87 per cent in June. Commodity prices. Wholesale com modity prices showed little change be tween the middle of August and the third week of September, following three months of advance. Prices of steel scrap and chemicals and drugs continued to advance and there were also increases in the prices of hides and non-ferrous metals. There was a seasonal decline in hog prices. Cotton, which advanced in price early this month at the time of the official crop part of the new Treasury issue was purchased by reporting banks, princi pally by drawing upon their balances with the reserve banks. Largely as a consequence of pay ments to the Treasury excess reserves of member banks showed a decrease of $280,000,000 in the week ending Sep tember 16. This decline followed an increase of nearly $200,000,000 in the preceding three weeks, when the Treasury was reducing its deposits with the reserve banks. Since early in August there has been a renewed in flow of gold and the country’s mone tary gold stock has increased by about $100,000,000 in the past month. report, declined after the middle of the month. Bank credit. Demand deposits of re porting member banks in leading cities increased somewhat further in the four weeks ending September 16, reflecting gold imports, Treasury expenditures and an increase in bank loans. Growth in loans was principally in so-called “other” loans, which include loans to customers for agricultural, commer cial and industrial purposes. These loans are now at the highest level since early in 1933. Loans to security deal ers showed an increase, as is usual, prior to flotation of the new issue of Treasury bonds on September 15. A Business and Banking Conditions in the Philadelphia Federal Reserve District Activity of industry, commerce and agriculture in the Philadelphia Fed eral Reserve District has been well sustained at about the same levels as in the previous month and at substan tially higher levels than in the preced ing four years. Evidence of seasonal expansion is now apparent in most lines of business. Commodity prices continue firm and further advances have been observed in several basic types of goods. Industrial production has been main tained at approximately the same rate as last month and at the highest level in the past five years. Industrial con sumption of electric power has in creased noticeably since June. The value of building contracts awarded declined from July to August but con tinued substantially larger than last year; current operations on contracts previously awarded have shown further expansion. Farm work is pro gressing at the normal rate for this season and weather conditions on the whole have been favorable to crops, pastures and field operations. Income from the sale of crops and livestock products this year has been increasing almost steadily and is substantially larger than in several years. The dollar volume of retail and wholesale trade fully maintained its seasonal rate during August and pre liminary reports for September indi cate customary gains. Comparison^ with last year continue favorable. Registrations of new passenger auto mobiles declined in the month but were considerably larger than last year. Life insurance sales were more active in August than in July but smaller than a year ago. Some slight im provement is reported in the activity of commercial travelers. Shipments of commodities chiefly manufactured in this area have increased further since July. Employment and compensation in twelve branches of trade and industry of Pennsylvania registered seasonal gains over July and continued at the highest levels in the past five years. Preliminary reports for September show additional seasonal increases in factory employment, payrolls and working time. Manufacturing. Current demand for factory products continues active and sales in the aggregate have increased further since the middle of last month. Favorable comparisons with last year are as prevalent as they have been for several months. The volume of un filled orders for most types of manu factures again has increased and is noticeably larger than at the same time in several years past. RETAIL TRADE SALES INDUSTRIAL ACTIVITY PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT INDUSTRIAL PRODUCTION SALES OF APPAREL AND SHOES BUILDING CONTRACTS (value) DEPARTMENT STORE SALES' 193 I Page Two 1933 1931 1932 1933 1934 1935 1936 Stocks of finished goods at report ing plants show little change and in dicate that current production gen erally is maintained close to the rate of incoming business. Purchases of raw materials have increased some what as they usually do at this season and in several instances inventories are somewhat larger than a year ago, reflecting partly increasing output and rising prices particularly for those commodities which are the products of the farms. Prices quoted by reporting factories show a continued firmness or further advances. The general level for the country as a whole has been fairly even, after an upward movement for a few months, the price index of the Bureau of Labor Statistics continuing around 80 per cent of the 1926 aver age, excluding foods and farm prod ucts. The number of factory wage earners in this section increased 3 per cent and the amount of wage disbursements 6 per cent between the middle of July and the middle of August. The vol ume of work done, as measured by employee-hours actually worked, also expanded by the same percentage as did payrolls. Preliminary reports for September show further seasonal gains in employment, payrolls and working time. Compared with a year ago, fac tory employment was 10 per cent larger and wage payments about 27 per cent greater, considering this district-as a whole. The Pennsylvania employment index in August was close to 85 per cent of the 1923-25 average and the payroll index was 81 in contrast with 77 and 64 respectively a year ago. Estimates show that the average number of wage earners employed in all Pennsylvania factories in August approximated 911,000 and the amount paid in wages averaged about $20,783,000 a week. Factory employment in southern New Jersey increased 8 per cent and payrolls 11 per cent from July to August and the respective gains over a year ago were 20 per cent and 34 per cent. Similarly, Delaware fac tories reported increases of 11 per cent in employment and 13 per cent in pay rolls during the month and, compared with last year, the level of August employment was 29 per cent higher and the volume of payrolls 43 per cent larger. These increases in the month in tjiese two sections of the district reflected partly the usual seasonal ex pansion in the activity of the canning and preserving industry. Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Not adjusted Per cent change Unadjusted indexes reflect merely the actual change which may or may not Aug. June July Aug. be typical. 1935 1936 1936 1936 Augus t 1936 fr<)m Month Year ago ago 1936 Aug. June July Aug. from 1935 1936 1936 1936 8 mos. 1935 Industrial production................... 74 Manufacturing—total................... 74 Durable goods................. 53 Consumers’ goods.............. 90 Metal products............................... 62 Textile products............................. 96 Transportation equipment.......... 36 Food products................................. 71 Tobacco and products........... 84 Building materials......................... 28 Chemicals and products.............. 104 Leather and products................... 128 Paper and printing........................ 80 Coal mining.............................. 38 Anthracite........................ 36 Bituminous......................... 56 Crude oil............................... 365 86 89 89p 84 88 89p 77 80 97p 90 94 87 90 87 86 92 lOOp 75 77 80 81 85 79p 88 98 r 95 40 42 42 116 119 116p 122 142 139p 86 84 85 67 67 r 50p 66 65 r 47p 73 82 76 404 428 430 - 1 + i + 20 + 20 + 12 + 13 73 73 85 84 + 3 — 3 + s + 4 - 7 - 3 — 1 - 2 - 2 + 2 -25 -28 - 7 + 0 + 7 + 40 + 4 +125 + 10 + 13 + 49 + 12 + 9 + 7 + 32 + 31 + 36 + 18 + 30 65 90 1 + 77 34 + 8 72 + 9 90 + 28 31 + 11 104 + 1 130 + 4 78 38 1 _ 2 36 + 9 53 + 7 376 87 84 75 77 96 44 117 119 85 58 57 65 420 Output.............................................. 206 r 199 Sales to industries!..................... 138 Employment and wages—Pa. Factory—-wage earners.................... Payrolls............................. Man-hours (1927-28 =100).. . General (1932 = 100) Employment.................. Payrolls.......................................... Building and real estate Contracts awarded!—'total.. . 28 Residential f.......................... 22 Non-residentialf.......................... 35 Public works and utilities!. . . 28 Permits for building—17 cities... 13 Mortgages recorded—'Philadelphia 7 Real estate deeds—'Philadelphia . . 43 Writs for Sheriff sales—Phila.. . . 946 Distribution Retail trade —sales...................... 67 stocks.................. 63 Wholesale trade—sales................ 76 stocks.................. 64 Life-insurance sales................ 105 New passenger auto, registrations. 90 Hotels—Occupancv.................... Income, total............... Freight car loadings—total............. 56 Merchandise and miscellaneous. 58 Coal.................................... 52 Business liquidations Number................................. Amount of liabilities.......... Payment of accounts Check payments............................ 80 Rate of collections (actual) Retail trade................. 31 Wholesale trade..................... 66 Prices—United States Wholesale (1926=100)............. Farm products....................... Foods............................... Other commodities.... Retail Food............... Philadelphia......................... Scranton........................ 229 236 234 - 1 + 13 + 12 196r 218 219 222 156 167 + 6 + 21 + 13 143 172 (In millions of dollars) 157 85 84 88p 88p 86 85 75 82 106r 45 117 129 81 55r 53 r 72 441 90 157 161 78 76p 102 47 117p 142p 83 50p 47p 72 443 6* 77 81 82 84 + 6* + 32* + 24* 64 81 80 85 56 59 34 35 62 62 104 122 16 19 6 7 60 28 558 660 63 40 63 126 22 5 25 494 + + 4* 9* 114 105 49 57 29 33 53 64 92 115 13 16 6 7 55 28 558 694 62 43 62 115 24 7 28 515 + 8 +28 - 3 + 0 +53 + 3 - 1 -26 +124 + 92 + 78 +309 + 81 - 8 - 36 - 46 +136 28 + 97 21 +122 35 +222 31 +122 12 4- 39 6 _ 8 39 30 908 _ 78 80 67 68 88 89 68 69 99 95 127 133 80p 70p 89p 69p 100 112 + 0 + 3 + o + 0 + 5 -15 + 0* + 0* - 1 + 2 - 7 + + + + + 21 10 17 8 5 26 + 11 52 77 58 64p + 10 71 84 82 83p _ 8 4- 27 88 99 + 26 + 24 + 25 + 14 + 15 + 3 58 60 50 68 69 65 71 71 70 70 72 65 -13* - 69* 81 82 88 + 7 32 72 32 78 32 74 + o + 10 + 7 74 75 63 44 23 20 68 84 80 75 66 75 79 74 79 80 80 80 79 0* 0* + May 1936 73 73 62 1* + + 2* + 0* Aug. 1935 84 124 69 71 56 42* 63 r + 12 + l* + 103 9i 177 150 5* + July 1936 1936 2* 76 Aug. 1936 81 % change from Month ago Year ago (a) 217 320 69.6 0 +1 -0 +20 +38 + 4 421 767 1,412 12.3 +0 —0 -1 +9 + 2 Banking and credit Federal Reserve Bank Bills discounted............... $ (a) Other bills and securities............. 181 Member bank reserves................. 232 Reserve ratio (per cent)............... 67.1 Reporting member banks Loans to customers................... * 414 Other loans and investments . . . 667 Total deposits (adjusted)............ 1,252 Bankers’ acceptances outstanding. 12.9 $ * (a) 183 276 73.1 $ 411 763 1,371 10.6 $ (a) 184 276 73.5 $ 413 763 1,374 10.9 $ * Computed from data unadjusted for seasonal variation. t 3-month moving daily average centered at 3rd month. (a) Leas than *500,000. (a) 217 316 69.9 S 419 770 1,423 11.3 $ ■ +13 — 5 p—Preliminary. r—Revised, | Not included in production index Page Three OUTPUT OF TEXTILE GOODS METAL PRODUCTS-EMPLOYE HOURS WORKED PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT_______ PERCENT PERCENT STEEL WORKS ------AND ROLLING MILLS WOOLENS AND •'WORSTEDS FOUNDRIES AND MACHINE SHOPS COTTON 1933 1934 Output of manufactures has been expanding steadily for six consecutive months. This bank’s index of produc tive activity covering about 45 impor tant industries increased slightly more than is usual between July and August and was 20 per cent higher than in August 1935. On the seasonally ad justed basis, this index rose to 89 per cent of the 1923-25 average as com pared with 88 in July, 84 in June, and 74 in August a year ago. In its up swing it has now reached the highest point since 1930 when the decline from the high level of 1929 was very sharp. A slight gain in production during August reflected chiefly improvement in the activity of those industries which produce such non-durable goods as textiles and clothing. Increases in the activity of such heavy industries as those comprising the transportation equipment group were more than off set by the failure to maintain the cus tomary seasonal levels in some of the primary and secondary iron and steel products. In comparison with a year ago, however, the rate of production by the durable goods industry was 48 per cent higher while that of the con sumers’ goods industry 7 per cent higher. Preliminary reports indicate that plant operations generally during September have been well sustained at high levels in comparison to those pre vailing in recent years. Electric power output increased by a slightly smaller percentage than that usually occurring between July and August, though the total continued 13 per cent larger than a year ago. Total sales of electricity showed a larger gain in the month than was to be ex pected and were 14 per cent greater than in August 1935. Power sales to industries registered the largest per centage increases over July and a year http://fraser.stlouisfed.org/ Page Four Federal Reserve Bank of St. Louis 1932 1931 1936 ago. In the first eight months this year the output of eight systems was 12 per cent larger and total sales by ten systems 13 per cent greater than in the same interval last year. Coal and other fuels. Contrary to the usual tendency, output of anthracite declined from July to August; ship ments also decreased, continuing a downward trend since May. Thus far this year production has been smaller, while shipments have been slightly larger than in the same interval of 1935. Stocks of anthracite in pro ducers’ storage yards have expanded for three consecutive months and on August 1 were about 6 per cent larger than a year earlier. (Output and shipment figures are daily averages) Anthracite Production.................tons Shipments..................tons Stocks............... 1000 tons Prices........... (1926=100) Employment.............. No. Bituminous Production.................tons Shipments.......... No. cars Prices........... (1926 =100) Employment.............. No. Prod. ...(1923-25 = 100) Prices........... (1926=100) Gas and fuel oil Prod. ...(1923-25=100) Prices............(1926=100) Per cent change from August 1936 Month Year ago ago 124,400 124,144 1,556t 79.1 73,710 -12 -11 +25 -15 +30 +27 + 6 +1 4- 7 342,346 23,982 96.4 125,291 + + + 0 7 0 1 +36 +26 + o + 2 115.2 93.7 +4 0 +39 + 6 115.3* 66.3 - 1 - 1 +20 + 4 1933 1934 months, contrasting with a downward trend a year ago. Output of by-product coke increased 4 per cent from July to August and was 39 per cent greater than a year ago. Production of gas and fuel oils has fluctuated narrowly for several months at substantially higher levels than last year. Building and real estate. The value of building contracts awarded in this district during August amounted to approximately $17,194,000, a substan tial increase over a year earlier, though only about two-thirds as large as the 1923-1925 average and 45 per cent of the 1926-1929 average. Com pared with July, the August contract total showed a decrease of 3 per cent, reflecting chiefly a sharp drop in the dollar volume of contracts let for pub lic works and utilities, factory struc tures, and a somewhat smaller decline in awards for family houses. The value of contracts awarded for apart ments and hotels, and educational buildings in August registered large percentage increases over the previous month and a year ago. Building contracts Philadelphia Federal Reserve District Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. t August 1. Production of Pennsylvania bitumi nous coal, while failing to maintain the usual seasonal rate during August, has continued on the whole at a high level relative to the volume mined monthly in recent years. In the first eight months this year production was nearly 9 per cent greater than a year ago and the largest for that period since 1931. Car-loadings of soft coal have increased sharply in the past three 1936 1935 Public works and utilities. Per cent change August 1936 From 1936 (000’s omitted) month 8from mos. ago 1935 $ 6,635 2,547 4,088 6,342 1,053 853 3,006 1,430 + 35 +568 - 10 - 2 - 1 - 52 + 36 - 0 + 97 + 67 +103 + 122 + 70 + 14 +756 + 38 $12,977 4,217 + 14 - 34 +111 +222 $17,194 - +136 3 Source: F. W. Dodge Corporation. As indicated by employment, cur rent operations on contracts previously HOSIERY WHOLESALE GROCERY SALES AND PRICES PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT SALES STOCKS FOOD PRICES (u s.) PRODUCTION 1932 1933 1934 1935 1932 1936 1933 1934 1935 1936 Source; Bureau oF Five Cental awarded have expanded further and continue in larger volume than last year. Similarly, activity at Pennsyl vania plants producing important building materials has increased stead ily since early spring. The index of employment in these establishments in August rose to 71 per cent of the 1923 1925 average, the highest for any month since 1930, and compared with the depression low of 39. The real estate situation in general has shown additional improvement. Renting demand for small houses and apartments and certain types of com mercial space, particularly accommo dations suitable for neighborhood stores, has increased further during the past three months. The trend of rent als for both residential and business properties has continued upward in this period. Sales of small dwellings currently are more numerous than for some time past. The market for larger houses also has become somewhat more active, particularly in the case of older properties that have been modernized and made over into apartments. Agriculture. Harvesting operations in the district as a whole are progress ing at about the normal rate under generally favorable weather condi tions. During a severe coast storm about the middle of September, how ever, corn and fruit crops were dam aged by high winds and some truck, particularly tomatoes, suffered from flooded fields. Moisture supplies in most sections have been sufficient to meet the needs of late growing crops and pastures, and have kept the soil in satisfactory condition for fall plowing. Estimated yields of several impor tant field crops, including corn, to bacco and white potatoes, have been revised upward since August 1, ac cording to the latest report from the Department of Agriculture. The ac companying table gives the indicated yields of the six leading field crops in this district. The estimated produc tion of orchard fruits is substantially smaller this year than last, particularly in the case of apples and peaches. In dications now are that New Jersey’s cranberry crop will approximate 85,000 barrels, a figure virtually unchanged from a year ago but nearly 30 per cent below the average for 1928-1932. Output of field crops Philadelphia Federal Reserve District (000’s omitted) 1936 indi cated yield* Corn.................. Wheat, all... . Wheat, winter. Wheat, spring. Oats.................. Tame hay........ Tobacco............. White potatoes 46,668 17,444 17,284 160 14,930 1,794 33,565 23,332 .bu. .bu. .bu. tons .lbs. .bu. Actual harvest 1935 Average 1931-35 54,140 19,083 18,893 190 16,699 2,412 28,488 24,888 48,948 15,635 15,500 130 15,671 2,179 34,412 24,714 * Baaed on September 1 condition. Receipts from the sale of farm prod ucts have been substantially larger thus far this year than last, reflecting chiefly higher prices received for dairy and poultry products, which are a major source of cash income to farm ers in this district. Distribution, trade and service. Dol lar sales of department, apparel, shoe and credit stores in this district during August exceeded those of a year ago by 21 per cent. Although all lines shared in this increase, the largest gains were reported by credit and ap parel stores. Actual sales during August showed about the usual rate of increase over July, so that our sea sonally adjusted index remained un changed at 80 per cent of the 1923 1925 average. Total dollar sales in the first eight months this year were 11 per cent larger than in the same interval of 1935. The value of wholesale trade sales in eight important lines was 17 per cent greater in August this year than last, increases ranging from 9 per cent in paper to 34 per cent in jewelry. As in the case of retail trade, the com bined dollar sales showed virtually no change in comparison with July, after allowance is made for the usual sea sonal variation. Thus far this year total dollar sales have exceeded those of a year ago by 9 per cent, reflecting partly higher prices. Inventories of merchandise at retail establishments expanded 9 per cent during August, which was an increase of somewhat larger than seasonal pro portions. In the case of wholesale trade, a rise of 3 per cent in this period approximated the usual change. The rate of stock turnover at retail was 7 per cent and at wholesale 4 per cent more rapid in the first eight months this year than last. The ratio of col lections during August to receivables outstanding at the beginning of that month was 3 per cent higher than a year ago at retail stores and 12 per cent at wholesale. Sales of new passenger automobiles, as measured by registrations in this district, declined sharply in August, reflecting in part the approach of the date for the introduction of new mod els. The number of units sold, how ever, was 26 per cent greater than in the same month last year and for the year to date has been the largest for that interval since 1929. Total freight car loadings in this section increased by a slightly smaller percentage than usual from July to August, owing chiefly to the fact that shipments of coal, grain and livestock failed to maintain their customary sea sonal level. They were 14 per cent larger in the first eight months this year than last. The volume of rail Page Five freight, consisting mainly of manu factures originating in the Philadel phia industrial area, has expanded for three consecutive months and in August was the largest for that month since 1931. Further gains are indi cated in September. Activity of commercial hotels showed virtually no change during August, following a sharp drop in the previous month. Compared with a year ago, room occupancy and income continued greater. Hotel business Philadelphia Federal Reserve District Aug. per cent change from Month Year ago ago Capacity............................... Room occupancy................ Per cent of capacity used: Aug. 1936.................. 47.9 July 1936................. 47.9 Aug. 1935................. 41.5 Income from: Guest rooms___ Food................... Other sources... Total revenue +0 +0 - 0 +16 1936 from 8 mos. 1935 + 9 +1 -1 +0 + 16 + 15 + 14 +12 +13 +14 +0 +15 +13 Expansion of reserve balances of member banks in this district during the last half of August continued into September. The total on September 23 was nearly 359 millions, the highest on record. Although by action of the Board of Governors of the Federal Reserve Sys tem the proportion of reserves re quired to be kept against deposits was increased one-half, effective August 16, figures for the first half of Sep tember in the table below show that the excess over requirements was 113 millions of dollars, somewhat larger than in September 1935. Banking conditions. Philadelphia Federal Reserve District (Averages in millions of dollars) Member bank re serve deposits Re Ex Held quired* cess 1936—'July—first half............... second half......... Aug.—first half............... second half. . Sep. —first half............. 313 318 314 326 346 154 154 154 231 233 159 164 160 95 113 1935—Sep.................. 242 135 107 * Increase in required reserves effective Aug. 16, 1936. The rise in member bank reserves during the five weeks ending Septem ber 23 amounted to 29j4 millions. The only week in which expansion did not take place was that covering the middle of the month when substantial payments were made to the Govern ment for new securities and the third quarterly installment of the income tax came due. Despite such payments Treasury receipts over the five-week period as a whole exceeded disburse ments by only about 6 millions. The Page Six decreased 6 millions. The funds de rived from deposit gains and invest ment sales were reflected in a 26 million rise in reserves carried with the reserve bank and an increase of 13 millions in balances held with other banks. Net changes over the five weeks in the various classes of loans to custom ers were trifling. It is of interest to note however that the unclassified group, designated as “Other loans” including industrial and commercial loans, reached 191 millions in the mid dle of Septemher, the highest figure this year; the total of 188 millions on September 23 was 19 millions above that a year earlier, but only 3 millions greater than on the corresponding date of 1934. Deposits of the reporting banks have increased by 144 millions within the past year. Loans increased 13 mil lions, and outstanding credit also was expanded through a 69 million in crease in investments, but a very con siderable percentage of the funds re ceived was added to reserves, as manifested in a rise of 75 millions in balances with the reserve bank. New Treasury bonds bearing 2J4 per cent were issued on September 15. Apart from tenders of maturing Treasury notes in exchange, this dis trict entered subscriptions totaling 302 millions and was allotted 26J4 millions. principal factor contributing to the upbuilding of reserves was a favorable balance of 34 millions in commercial and financial transactions with other Federal reserve districts. There was little net change in currency demand, such expansion as occurred prior to Labor Day being largely offset by a return flow thereafter. Reporting member Sept. 23, 1936 (000,000’s opnitted) Assets Loans to brokers and dealers: Outside New York Citv . Loans on securities to others (except banks).... Acceptances and commerciai paper bought.............. $ Total loans...................... $ U. S. Government securities........................................ Obligations fully guaranteed by U. S. Gov’t.......... Other securities.......... .. 9 20 Other liabilities..................... One year —S 4 + 7 148 - 3 + 2 7 24 62 2 188 -* i 453 -$ i 316 - 2 + 31 101 312 + i - 4 + 11 + 27 Total loans and investments............................ SI,182 Reserve with Federal Reserve Bank.......................... 240 Cash in vault......................... 15 Balances with other banks 158 88 Liabilities Demand deposits, adjusted * Time deposits........................ U. S. Government deposits Interbank deposits............... Chan ges in Five weeks + 19 +$13 -t 6 +$82 + 26 + i + 13 + 75 + 1 - 2 — 9 779 276 76 305 +$23 + i + 5 + 3 +*82 + 6 + 40 + 16 23 224 + + + 2 1 2 Deposits of the weekly reporting member banks, adjusted for items in process of collection, increased ma terially; of the total increase of 32 millions, only 5 millions were in those credited to the United States Govern ment in payment for new securities and 3 millions in interbank balances; in view of the district’s markedly favorable balance in the settlements, it appears that a substantial part of the new funds must have come from other districts. Investments in direct obligations of the national Govern ment declined a little despite an allot ment of new securities and the total of open market loans and investments Federal Reserve Bank of Philadelphia (Dollar figures in millions) Bills discounted.... $ Industrial advances. United States secu- Sept. 23, 1936 0.4 0.3 5.1 Changes in— Five weeks +*0.1 211.2 Total bills and securities................ $217.0 led. res. note circulation................... 295.0 Member bank reserve deposits.... 358.7 U. S. Treasurer — general account... 21.7 Foreign bank deposits...................... 5.9 Other deposits.......... 1.9 Total reserves........... 487.6 Reserve ratio............ 71.3% One year -$ 0.1 + 0.8 + 34.0 +$0.1 +*34.7 + 1.0 + 45.8 +29.5 +120.8 +12.9 + 16.9 - 2.4 + 0.1 +39.3 + 1.5% + 3.8 - 61.3 + 92.3 + 0.4% MEMBER BANK RESERVES AND RELATED FACTORS Changes in weeks ending—■ Aug. 26 Sep. 2 Sep. 9 Sep. 16 Sep. 23 Changes in five weeks Sources of funds Reserve bank credit extended in district .... Commercial transfers (chiefly interdistrict). . Treasury operations.............................................. +0.5 +0.4 +2.8 -0.5 +3.6 +5.0 + 0.7 + 9.9 + 4.0 + 0.4 +12.6 -17.4 + 1.0 + 8.2 - 0.8 + 2.1 +34.7 - 6.4 Philadelphia Federal Reserve District (In millions of dollars) Total................................................................. +3.7 +8.1 +14.6 - 4.4 + 8.4 +30.4 Uses of funds Currency demand.................................................. Member bank reserve deposits.......................... “ Other deposits ” at reserve bank.................... Unexpended capital funds of reserve bank... -0.0 +3.5 +0.1 +0.1 + 1.3 +6.4 +0.3 +0.1 + 2.7 +12.1 - 0.3 + 0.1 + - 1.4 3.4 0.4 0.0 - 2.1 +10.9 - 0.4 + 0.0 + 0.5 +29.5 + 0.1 + 0.3 Total................................................................. +3.7 +8.1 +14.6 - 4.4 + 8.4 +30.4 Employment and Payrolls in Pennsylvania RESERVE DEPOSITS OF MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT (All figures are rounded from original data) Manufacturing Indexes Employment* Payrolls* (Indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and Aug. change from Aug. change from group indexes are weight 1936 1936 ed proportionately.) index Auk. July index Aug. July 1935 1936 1935 1936 REQUIRED EXCESS OVER REQUIREMENTS 1932 1933 1934 1935 1936 1937 (Licensed banks only after March 1933)_________________________________________________ Latest figures—August. “Held” indicates amount on deposit with the reserve bank. LOANS TO CUSTOMERS REPORTING MEMBER BANKS All manufacturing.......... Iron, steel and products. . Non-ferrous metal prods. Transportation equip. . . . Textiles and clothing. . . . Textiles........................... Clothing.......................... h ood products................... Stone, clay and glass.. . . Lumber products............. Chemicals and products. Leather and products. . . Paper and printing.......... Printing.......................... Others: Cigars and tobacco. . . Rubber tires, goods. . . Musical instruments. . 84 76 116 65 103 98 122 103 82 65 88 92 92 86 68 84 54 Figures from 2271 plants. + 10 + 19 + 14 +36 + 2 + 0 + 8 - 0 +11 + 7 + 6 - 7 + 3 + 4 - 2 + 19 +10 + 3 + 2 + 1 +11 + 3 + 3 + 4 + 0 + 1 - 2 - 0 + 4 + 0 + 0 81 82 119 57 93 91 106 99 74 54 + 2 + 1 + 3 62 86 53 +27 + 6 + 5 + 3 + 11 + 13 + 12 +43 +23 +58 + 9 + 7 + 10 + 9 +33 + 13 + 19 - 5 + 8 + 7 86 86 86 82 +16 - 0 + 4 + 1 + 0 +12 + 3 + 1 + 11 +47 + 8 + 5 + 16 +33 Employehoursf Aug. 1936— per cent change from Aug. July 1935 1936 +32 +42 + 19 +76 + 8 + 7 + 14 + 6 +29 + 13 +28 - 2 + 9 + 5 + 9 +40 +40 + 6 + 5 + 1 + 9 +10 + 9 +12 - 1 + 5 - 1 + 1 +11 + 3 + 2 + 8 + 3 +12 f Figures from 2038 plants. PHILA. FED. RES. DISTRICT MILLIONS LOANS ON SECURITIES General Index Numbers 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.) OTHER LOANS General index (weighted)___ Manufacturing............................. LOANS ON REAL ESTATE 934 1935 1936 Loans to banks and open market excluded Percentage change—-August 1936 from August 1935 City areas* Manufacturing Employ ment Wage payments Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre. . . . Williamsport........ Wilmington.......... York....................... +15 + 3 +11 +25 + 8 + 8 +1(1 - 7 +« 0 + 4 +16 + 4 +35 +46 +28 Allentown....... Altoona............... Harrisburg......... Johnstown.......... Lancaster............ Philadelphia. .. . Reading............... Scranton............. Trenton............... Wilkes-Barre. . . Williamsport.... Wilmington........ York..................... + + + + + + + + + + + + + +57 +15 +22 +25 - 1 +16 + 5 + 9 +30 +16 Building permits (value) Debits + 13 + 69 + 229 + 385 +3717 + 21 + 98 - 37 + 548 - 56 + 181 + 11 + 8 + 5 +20 +16 +40 +18 + 4 +14 + 2 -14 + 6 +24 +28 < 3 2 2 2 3 2 + 9 + 7 + 8 + O + 13 + 7 +11 + 3 + 7 + 9 + 5 + 7 + 6 32 + 13 + 15 57 + 1698 — 19 49 — + 171 + 10 57 — 47 — 24 — 34 — 114 133 66 118 82 119 170 93 104 112 104 102 106 Aug. 1935 July 1936 +» + 1 + 3 -15 +10 + 7 + 2 + 19 + 14 -17 + 4 + 4 + 7 + 3 + 7 +12 Aug. 1936 index +1 + 3 + 3 + + + - 2 0 1 1 1 1 1 154 197 59 186 101 222 171 98 110 108 104 105 107 Per cent change from Aug. 1935 July 1936 +26 +27 +11 +52 +53 + 4 + 6 -15 + 1 + 6 + 7 + 1 + 1 - 1 + 1 - 4 - 6 - 4 - 2 + 6 +10 +10 + 7 +12 +n +12 +41 +16 +49 +10 +12 + 3 + 0 +26 + 3 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT +35 +21 -10 - 8 - 7 - 5 - 9 -10 - 8 - 7 -24 -11 - 7 -13 - 8 ~ PAYROLLS +10 +23 +29 + 8 - 3 EMPLOYMENT +10 + 9 + 4 - 1 +23 1932 * Area not restricted to the corporate limits of cities given here. Aug. 1936 index Payrolls Per cent change from Retail trade sales August 1936 from July 1936 3 1 4 2 5 3 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 1933 1934 1935 1936 Page Seven Index numbers of individual lines of trade and manufacture WHOLESALE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Not adjusted Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Per cent change Unadjusted indexes reflect merely the actual change which may or may not Aug. Jun. July Aug. by typical. 1935 1936 1936 1936 Aug. 1936 from Month Year ago ago 1936 8 mos. 1935 Aug. Jun. July Aug. 1935 1936 1936 1936 Retail trade Sales Total of all stores. . . Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... Stocks of goods Total of all stores... Department........... Men’s apparel. . . . Women’s apparel. Shoe......................... Credit...................... 67 65 59 110 58 55 80p 73p 70p 128 62 85 + 0 + 4 + 3 +32 - 6 -21 + + + 68 70p 52 54 p 82 64 p 104 107 64 68 78 88 + 3 + 5 -22 + 2 + 6 +13 + 10 + 7 + 9 + 9 + 1 + 19 78 80 74 70 70 68 87 97 70 66 r 92 108 63 51 59 98 r 67 53 71 98 74 81 21 12 18 17 7 54 Rate of stock turnover 8 months (actual, not indexes). + + + + + + ii 52 10 50 15 46 12 75 8 .44 32 52 61 48 61 86 r 67 73 + 7* 77 71 75 85 83 87 58 52 56 64 60 r 70 64p 56p 55p 88 47 81 64 51 67 88 66 78 61 48 67 78 60 77 67p 51p 67p 94 68 87 2.72 2.54 Wholesale trade Total of all lines......... Boots and shoes. . . Drugs........................ Dry goods........ Electrical supplies. Groceries.................. Hardware................. Jewelry...................... Paper.................. . . . 76 49 88 35 r 76 I09r 47 r 35 68 88 89 89p 59 43 63 98 99 99 44 48 45p 108 100 88p 117 121 127 55 52 56 54 52 47 73 75 74 + 0 +47 - 0 - 6 -13 + 7 -10 - 2 + b + 17 27 13 27 15 17 18 34 9 Stocks of goods Total of all lines......... Boots and shoes. . . Drugs........................ Dry goods.............. Electrical supplies. Groceries................ Hardware............... Jewelry.................... Paper....................... 64 24 107 39 r 86 66 81 r 49 57 68 69 69p 20 29 27 116 113 106 37 38 39p 113 106 lOOp 70 72 75 84 77 81 53 51 55 62 63 62 + + + + + - + + + + + + + 8 12 1 2 16 13 3 12 8 0 8 6 5 5 3 3 6 2 Rate of stock turnover 8 months (actual, not indexes). Output of manufactures Pig iron......................................... Steel............................................ ... Iron castings............................... Steel castings.............................. Electrical apparatus.................. Motor vehicles..................... .. • • Automobile parts and bodies. Locomotives and cars............... Shipbuilding................................ Silk manufactures...................... Woolen and worsteds............... Cotton products......................... Carpets and rugs....................... Hosiery......................................... Underwear................................... 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...................... + 9 71 13 56 9 82 10 33 r IS 62 3 107 r 13 42 r 14 31 u 65 84 82 83p 51 35 71 95 93 92 40 37 42p 88 82 72p 119 122 125 58 50 50 45 35 41 70 70 71 65 26 110 41r 92 61 80 r 54 59 66 68 70 19 29 29 109 112 109 37 38 42p 111 106 107p 63 66 69 79 81 83 58 59 61 62 63 63 3.92 3.76 4* A/ — SALES_ / /..AVm y --------STOCKS 53 82 85 93 99 12 60 32 240 88 78 50 123 105 149 49 45 32 +10 - 4 - 5 -11 + 0 +24 + 8 + 2 + 2 + 8 + 2 + 4 +21 + 5 - 3 + 6 - 2 - 7 - 1* + 2 69 96 88r 89 -59 115 74 168 69 54 70 72 70p - 3 - 3 84 87 97 95 + 2 60 68 67 68 + 2 84 90 87 89 - 4 140 133 161r 155 116 111 123 125p +1 - 2 75 83 81 81 87 91r 81 -10 71 137 148 150 149p - 1 + 4 84 114 113 118 33 57 64 56 76 13 47 18 78 106 81 43 131 121 126 28 36 23 56 61 89 85 79 75 123 110 94 94 15 18 69 75 35 r 35 230 236 93 100 72 74 55 58 124 150 120r 126 154r 150 57 54 52 r 51 29 27 * Computed from data unadjusted for seasonal variation. Page Eight + + + + + + + + + + 86 + 78 + 48 + 38 - 17 + 30 - 97 + 76 + 24 + 14 + 41 + 26 - 59 + 50 - 99 + 62 +201 + 100 - 5 - 5 - 9 - 1 + 35 + 20 b 14 + 8 - 7 + 19 + 16 +101 + 28 f 40 + 37 + 19 + 27 + 5* + 4* + 30 + 17 - 40 + 25 + 31 + 12 + 13 + 9 + 13 + 11 + .6 + 3 + 11 + 1 + 8 + 3 + 1 + 8 + 14 + 13 + 8 + 8 + 39 + 29 29 58 62 54 84 11 44 18 78 103 83 38 120 105 117 36 37 25 84 61 99 57 90 60 82 150 111 81 73 138 83 p—’Preliminary. 50 84 84 96 99 15 60 33 237 83 74 48 118 103 149 59 47 33 90 91 79 50 95 67 89 126 113 75 89 149 114 54 51 87 81 75 72 110 106 99 104 15 15 66 70 35r 36 224 233 91 97 68r 76 48 52 113 137 98r 110 128 139 63 72 50 r 53 32 30 90 89 79 r 77 171 59 58 62p 105 r 101 65 68 85 r 86 150r 166 109 120p 81 81 84r 83 151 150p 111 115 r—Revised. JEWELRY PAPER
@FedFRASER