The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW FEDERAL RESERVE BANK mm OF PHILADELPHIA OCTOBER I, 1942 PRODUCTION for war purposes continues to tained, reflecting chiefly continued large pur maintain industrial activity at peak levels. chases of munitions and other equipment essen A much larger quantity of durable manufac tial to the war effort. Sales for civilian use tures is being turned out than a year ago, remain at reduced levels, except for small whereas declines are reported in consumers’ increases in the case of certain textile and goods. Production and shipments of coal dur leather products. Shipments of both durable ing the first eight months have been larger than and nondurable manufactures continue heavy, principally against large Government orders. in the same period for the past decade. Deliveries to the regular trade have slackened Construction activity appears to have passed further in most lines. its peak as restrictions are imposed upon non essential projects and emphasis is shifted from Operations at some war plants have risen to expansion of facilities to more intensive use of new peaks, but these gains generally have not existing capacity. In August contracts placed been pronounced, as production has been near for industrial plants and small houses increased capacity for several months. Reduced activity more than enough to offset declines in other in many civilian industries continues to reflect categories, but the total volume was substan a growing shortage of labor and more rigid tially smaller than some of the peaks reached restrictions on the use of materials. Unfilled in the past year. orders are very large in most heavy goods lines but backlogs have decreased somewhat further Wage payments continue to expand more at establishments making lighter products. rapidly than employment owing partly to further increases in hourly earnings. Weekly Employment in Pennsylvania factories in income is now higher than at any other time in creased slightly in August to a new peak of records extending back through 1923. Labor about 1,183,000 workers, and wage payments shortages are reported in agriculture as well as rose 4 per cent to a record high of $42,200,000 in industry. While the buying power of the a week. During the three years of war, the consumer continues to rise rapidly, purchases of number employed has expanded 38 per cent; goods in recent months, as reflected in retail sales, have not differed materially from those the volume of wage disbursements 114 per cent; in 1941. Forward buying by retailers has been and total employee hours worked 85 per cent. less active than last summer, but their stocks of Reports from a limited number of concerns indi goods continue sharply above those reported cate that employment and payrolls were well maintained in September. at that time. Manufacturing. The demand for manufac tured goods in this district has been well sus In the heavy industries, employment in Au gust was 13 per cent above the 1941 level and Page One MANUFACTURING ACTIVITY HOURLY EARNINGS AND WORKING TIME THIRD FEDERAL RESERVE DISTRICT PERCENT HOURS PENNSYLVANIA FACTORIES CENTS 90 AVERAGE HOURLY EARNINGS \ PAYROLLS 60 HOURS WORKED EMPLOYMENT PRODUCTION 70 60 1937 1938 1939 1940 1941 1942 wage payments 28 per cent, reflecting excep tionally sharp gains at metal-working estab lishments. The number employed at plants making lighter products was 6 per cent less than a year earlier, and payrolls were only 7 per cent larger. Earnings of factory workers in Pennsylvania increased to a new high average of 92 cents an hour, as against 81 cents in August, 1941, and 69 cents three years ago. Working time rose to a twelve-year peak, averaging 42i/2 hours, com pared with 42 in July, and 41 a year ago. Weekly income, averaging $38.97 in August, was the highest in records back to 1923, and $5.68 more than in August of last year. 1938 193 9 1940 1941 1942 Production of anthracite decreased less than seasonally from July to August and continued substantial during the first half of September. The output of mines through August aggre gated 40 million tons, about 8 per cent more than a year earlier and the largest for the pe riod in over a decade. Shipments increased for the third successive month. The output of bituminous coal in Pennsylvania declined contraseasonally from July, and was slightly smaller than in August, 1941. Pro duction so far this year, however, has been the largest since the late 1920’s. Shipments of the fuel expanded considerably in August to an average of 33,600 cars a day. In the first eight months of 1942 deliveries exceeded those for any like period in recent years. Output of factory products in this district increased about 2 per cent from July to August, and was 17 per cent greater than a year ago. The gain in the month was somewhat less than seasonal, as was to be expected in view of the high rate of operations previously reported. In the heavy industries output was 43 per cent greater than in August, 1941, but in the case of lighter products it showed a decline of 7 per cent. Building. Activity in the construction indus try in this district in August was below the high levels prevailing a year ago. Operations on nonessential projects have declined sharply since restrictions were placed on the use of steel and other critical materials several months ago, but the volume of defense construction has re mained heavy. and other fuels. The market for anthra cite and bituminous coal remains active, in spite of unusually large sales to dealers and con sumers through the summer. Orders for fuel oil have been large following the release of limited quantities to householders; rationing in thirty states in the East and Middle West will begin October 1. The demand for coke is sus tained at peak levels by the heavy requirements of the iron and steel industry. Awards of building contracts expanded 13 per cent in August to $26 million, owing to in creased placements for one and two-family houses and industrial buildings. Contracts for public works and utilities declined sharply from the peak reached in July, but they were still 12 per cent greater than in August, 1941. Awards for commercial structures, educational build ings, and miscellaneous construction decreased in the month to levels substantially lower than a year ago. Coal Page Two TEXTILE ACTIVITY ACTIVITY IN THE STEEL INDUSTRY EMPLOYEE-HOURS IN PENNSYLVANIA EMPLOYEE-HOURS IN PENNSYLVANIA PERCENT PERCENT COTTON ' GOODS STEEL WORKS AND ROLLING MILLS , BLAST EURNACES WOOLENS AND WORSTEDS 1937 1938 1939 1940 1941 1942 Contract awards totaling $227,200,000 in the first eight months were the largest for the pe riod in recent years. Pronounced increases over 1941 were reported in contracts for fac tories and public works and utilities, but resi dential awards were reduced one-third. Agriculture. Late crops are maturing rapidly and the condition of pastures is above average for this time of the year. But seasonal farming operations such as harvesting, fall plowing, and the planting of winter grains are being delayed in some sections by the growing short age of labor. The market for farm products continues decidedly more active than in other years, reflecting the heavy requirements of our armed forces and expanding civilian demand. Estimated yields of corn and hay have been revised upward; the condition of these crops on September 1 indicated that production would be substantially larger than in 1941, and well above the average for the years 1936-1940. The output of wheat, oats, tobacco, and white potatoes has not measured up to earlier expec tations, owing to unfavorable weather during August. Official estimates indicate that produc tion will be smaller this year than last and, in most cases, below the five-year average. Prices of agricultural commodities have risen slightly further, reflecting principally higher quotations on cei-tain livestock products. Farm cash income in Pennsylvania, New Jersey, and Delaware increased sharply in July to over $74 million; the total of $338 million in the first seven months was 34 per cent more than a year earlier. 1937 1936 1939 1940 194 1 1942 Trade. Retail sales increased in this district during August, but in most lines were somewhat smaller than a year ago. Improvement in the month was pronounced at department, men’s apparel, and shoe stores. At women’s apparel and credit stores the increase from July was slightly less than usual. Preliminary returns in dicate that sales expanded further in September. The ratio of collections on charge accounts to receivables at department stores decreased from the peak reached in July, but remained considerably above August of last year. In the case of instalment accounts, the collection ratio rose to a new high in August. Retail inventories increased less than season ally in August at department, apparel, and shoe stores, and declined at establishments engaged chiefly in the sale of consumer durable goods on an instalment basis. At the end of the month, however, stocks in a number of lines were still sharply larger than a year ago. Outstand ing commitments for merchandise by depart ment stores increased somewhat further in Au gust, but continued well below the peak reached in the late summer of 1941. Reports in detail for July show that stocks were equal to 5.8 months’ sales as against 3.7 a year earlier. Some of the largest increases in actual stocks over the summer of 1941 were in the apparel departments. Wholesale trade sales in the aggregate showed practically no change from July to Au gust. Sales in the month were somewhat smaller than a year ago but for the year to date were substantially larger than in 1941 in all lines but electrical supplies. Inventories genPage Three DEPARTMENT STORE SALES AND STOCKS BUILDING CONTRACTS MILLIONS £ 200 THIRD FEOERAL RESERVE DISTRICT RESIDENTIAL THIRD FEDERAL RESERVE DISTRICT PERCENT - STOCKS »“ NON-RESIDENTIAL AO-IUSTED fOR SEASONAL VARIATION '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 '38 '39 40 4l '42 erally decreased in the month and in most cases were less than in August, 1941; the sharpest declines from a year ago were in electrical sup plies, hardware, and jewelry. 1937 19 3 8 1939 1940 1941 1942 Loans dropped $15 million further to less than one-half billion dollars, the lowest point since the early spring of 1941. The trend in commercial loans has been downward since last March, apparently reflecting smaller working The volume of rail freight shipments re capital requirements in lines not related directly mained heavy during August. The tonnage of to the war effort. Unclassified loans, including freight moved continued larger than a year ago, personal and instalment loans to individuals, although heavier loadings of individual cars also have been falling and are at the lowest resulted in some decline in the number actually point since early 1940. used. Total loadings through August were Reports from a group of banks in this dis slightly larger than in 1941, the greatest in trict which are active in the consumer instal creases being in shipments of fuels, ore, and ment credit field continue to reflect the cur livestock. tailment in supplies of durable consumer goods Banking conditions. The spreading influ and the restrictions placed upon credit" of this ence of war is being reflected to an increasing type by Regulation W. Outstandings declined extent in the condition of the member banks. 6 per cent further in August, and since the first Earning assets have been raised to new high of the year have dropped 38 per cent. The levels by purchases of Treasury securities, de greatest decline since December was 57 per cent mand deposits of individuals and business en in automotive paper. In other retail paper, terprises have been expanding and, partly as a created largely through sales of durable goods, result of heavier requirements, excess reserves the decrease was 30 per cent. Difficulties in securing labor and materials contributed to a have declined. shrinkage of 34 per cent in repair and modern loans. Personal instalment cash loans Investments of the reporting banks in this dis ization comprised than one-half of the new have trict increased $35 million to $1,087 million in consumer loans more made by reporting banks in the five weeks ended September 23, reflecting recent months; nevertheless the amount out allotments of new certificates of indebtedness standing has declined 29 per cent since 1941. and further additions to the portfolio of Treas ury bills, which now stands at $105 million. The reserve balances of member banks de Holdings of United States Government obliga clined somewhat further in the past month to tions, direct and guaranteed, have expanded $630 million, but are still substantially in ex nearly $400 million or approximately 90 per cess of requirements. As of September 23 the cent since June, 1940; more than one-half of excess over requirements is estimated to have this gain has been in Treasury bonds, although been approximately one-quarter at banks in acquisitions this year have been largely shorter Philadelphia and over 40 per cent at the country term securities. banks. The decline of over $150 million in rePage Four MEMBER BANK RESERVES REPORTING MEMBER BANKS THIRD FEDERAL RESERVE DISTRICT MILLIONS MILLIONS THIRD FEDERAL RESERVE DISTRICT TOTAL INVESTMENTS IN US.GOV’T OBLIGATIONS (direct and guaranteed) \ EXCESS REQUIRED ’COMMERCIAL LOANS 1940 194 I 1942 serves since late October of 1941 has been largely at the city banks, with the country banks showing a small increase. In this period the district gained about $650 million in inter district commercial and financial transactions, while losing nearly $600 million through Treas ury operations and over $200 million through the active demand for currency. in the months of quarterly income tax pay ments, Treasury receipts from the usual sources are falling far short of disbursements, mak ing frequent recourse to market security issues necessary. Flotations in September were in the short term field. They included 0.65 per cent certificates of indebtedness maturing May 1 next year and 11,4 per cent Treasury notes due in March, 1945. Subscriptions totaled $5.6 bil Treasury financing. New and revised series lion and approximately $3 billion was allotted; of Tax Savings Notes were offered by the Treas in the Third Federal Reserve District subscrip ury on September 14. They provide a con tions and allotments were $216 million and $118 venient and systematic method of accumulating million respectively. funds for the payment of taxes. Series C also constitutes an exceptionally attractive medium Weekly offerings of Treasury bills were for the safe investment of idle funds held by raised from $350 million to $400 million, but business concerns and others. It may be pur the placement rate continues to average about chased in any amount and is eligible as collat 0.37 per cent. Commercial banks find these eral for loans from banking institutions. Interest bills advantageous for the employment of sur accrues on a rising basis and averages about 1.07 plus funds. Income is increased and liquidity per cent a year if the notes are held to maturity, is sustained, as the Reserve Banks purchase which is three years from the first day of the bills tendered to them at a discount rate of month in which they are purchased. They can % per cent per annum and give sellers the be used in payment of taxes at par and accrued option of taking them back before maturity at interest by any holder, and have equal value, the same rate. In this district 78 banks sub in the hands of others than banks accepting de mitted tenders on the first issue of September mand deposits, when redeemed in cash after and interest remained active later in the month, six months upon thirty days’ notice. despite market offerings of new securities and the incidence of the income tax period. Series A Tax Savings Notes, intended prim arily for the smaller taxpayer, can be tendered Sales of War Savings bonds in this district in amounts up to $5,000 each year for each class by issuing agents other than postoffices totaled of taxes—income, estate or gift. When used $31.3 million, issue price, in the first twentyin payment of taxes, interest accrues at a rate two days of September. The combined sales of of 1.92 per cent a year, but if not so used re demption is at cost price, which is par and ac Series F and G were little larger than in Au gust, but sales of Series E increased to $17.9 crued interest at date of purchase. million from $14.9 million and $15.6 million War expenditures are rising rapidly and in respectively in the corresponding periods of September may approximate $5’/2 billion. Even August and July. Page Five BUSINESS STATISTICS Production Employment and Income Philadelphia Federal Reserve Districl in Pennsylvania Adjusted for seasonal variation Not adjusted Industry, Trade and Service Per cent change Indexes: 1923-5 =>100 INDUSTRIAL PRODUCTION MANUFACTURING................ Durable goods............... .. . . . . Consumers* goods......... Metal products......................... Textile products........................ Transportation equipment... Food products........................... Tobacco and products............. Building materials.................... Chemicals and products......... Leather and products............. Paper and printing.................. Individual lines Pig iron........................................ Steel.. ............. .. ......................... Silk manufactures.................... Woolens and worsteds............ Cotton products........................ Carpets and rugs..................... Hosiery........................................ Underwear............ Cement........................................ Brick............................................. Lumber and products....... Bread and bakery products.. Slaughtering, meat packing. . Sugar refining...................... ...... Canning and preserving......... Cigars........................................... Paper and wood pulp............. Printing and publishing......... Shoes............................................ Leather, goat and kid............. Paints and varnishes............... Coke, by-product..................... COAL MINING.......................... Anthracite................................... Bituminous................................. CRUDE OIL................................ ELEC. POWER—OUTPUT.. Sales, total.................................. Sales to industries.................... BUILDING CONTRACTS TOTAL AWARDS!................... Residentalf. ............................. Nonresidential f......................... Public works and utilities!.. . Aug. 1942 from Aug. July Aug. 1942 1942 1941 Employment 1942 Aug. July Aug. 1942 1942 1941 Mo. ago Year ago 8 mos. 1941 139 119 - 1 139 117 - 1 211 145 - 2 92 97 r - 2 164 141 - 6 78 90 - 1 507r 255 + 5 102 92 r 0 111 111 in 0 48 52 52 - 7 135 137 151 - 1 105p 117 122 -10 88 87 92 0 + 16 + 17 4- 43 _ 79 + — 15 4108 + 10 0 — 8 10 — — 14 — 5 + 20 + 21 4 46 - 2 + 18 - 11 4117 + s + 14 + 6 - 2 - 4 + i 135p 133 137p 134 118r 118r 161 72p 521 97p 119 55 135 J07p 85 158 72 492 r 96 120 56r 134 107 85r 147 85 247r 96r 119 59 152 125 90 123 116r 118 + 6 128 140 122 - 9 82 86 89 - 4 61p 63 76 - 3 67 67 r 63 r + 1 54p 56 113 - 4 93 92 106 +1 165 184 173 -10 67 69 72 - 3 69 - 9 66 73 30 r 32 - 8 28 + 4* 97 100 101 - 3 61 ** -19 75 117p 120 108r - 3 111 111 111 0 78 83 88 - 6 90 88 93 + 1 120 142 146 -16 91p 94 100 r - 3 84 91 101 - 8 162 161 153 +1 101p 101r 106r 0 lOlp 99 107r + 2 98 113r 102 r -13 467 465 419 0 3 8 383 349 - 1 381 374 350 + 2 281 265 252 + 6 + + — — + — — — — — — + — 4 5 8 21 7 52 12 5 7 4 13 12* 3 + + + + + + — 8 0 12 3 18 9 17 6 5 6 4 11 9 9 11 108 130 80 62p 61 51p 81 153 83 69 30 110 84 52 104p 119 78 87 128 88p 86 158 77p 75p 92 467 359 362 289 107r 128r 84 r 60 58 r 54 76 153 81 70 33 r 106r 89 77 97 120 79 86r 132 83 85 157 79 77 99 r 465 356 352 270 104 124 87 78 57r 104 92 161 90 72 34 98 86 ** I31r 119 88 90 156 96r 103 150 8!r 79 r 96 r 4.9 331 332 260 112 36 160 225 150 102 206 159 I37p 137p 208p 90p 154 77p 531 lOlp 118 122 38 32 175 173 245 261 * Unadjusted for seasonal variation. t 3-month moving daily average centered at **No Aug. 1941 figs, due to strike. 155 91 224 183 - 4 +19 + 1 - 6 — — — — — + — — — + + + + + 4 + + + + + + + + + + + + 13 11 2 13 3 50 11 2 6 5 0 7* 0 24 20 14 2 1 10 6 6 7 8 a 17 16 10 11 16 24 + 16 114 58 - 25 43 22 4 22 161 + 34 + 75 213 p—Preliminary, 3rd month. r—Revised. _ — — Indexes: 1932=100 GENERAL INDEX............ Manufacturing...................... Anthracite mining............... Bituminous coal mining. . . Building and construction. Quar. and nonmet. mining Crude petroleum prod........ Public utilities...................... Retail trade............................ Wholesale trade.................... Payrolls Per cent Aug. change from Aug. 1942 1942 index July Aug. index 1942 1941 132 271 0 - 1 178 0 + 4 390 62 84 0 - 6 100 - 2 - 6 309 57 - 2 -20 116 124 - 1 - 3 345 144 +1 +1 193 105 0 - 1 132 102 - 2 - 8 136 116 0 - 9 142 Laundries............................... Dyeing and cleaming........... 113 99 - i - 9 - 9 -10 160 137 Per cent change from July Aug. 1942 1941 + + + + - 3 4 5 7 3 1 3 0 - 3 0 +19 + 5 - 2 - 1 +1 -13 + 1 - 4 +14 +22 - 5 - 3 - 8 Manufacturing Employment* Indexes; 1923-5=100 TOTAL..................................... Iron, steel and products... Nonferrous metal products. Transportation equipment. Textiles and clothing.......... Textiles................................. Clothing............................... Food products....................... Stone, clay and glass.......... Lumber products.................. Chemicals and products... Leather and products......... Paper and printing.............. Printing................................. Others: Cigars and tobacco........... Rubber tires, goods...... Musical instruments......... Payrolls* Per cent Per cent Aug. change from Aug. change from 1942 1942 index July Aug. index July Aug. 1942 1941 1942 1941 114 0 + 4 159 + 4 +22 125 0 + 8 224 + 4 +21 191 +1 + 7 345 + 4 +31 119 + 2 +30 187 + 4 -68 90 - 1 -10 110 + 2 - 4 82 - 1 -11 102 + 2 - 4 123 0 - 5 151 + 2 - 3 117 + 4 + 7 149 + 6 rl9 94 0 - 5 120 + 3 - 4 55 - 6 -21 -11 68 - 4 117 +1 + 4 165 + 2 +15 94 - 1 - 3 118 0 + 8 97 - 1 - 6 119 + 3 + 1 88 - 1 - 4 105 + 4 + 5 70 102 56 0 0 - 7 - 1 + 3 -26 77 173 77 + 4 + 3 - 6 +11 +38 -19 * Figures from 2863 plants. Hours and Wages Factory workers Averages August 1942 and per cent change from year ago Rusinpss rVniHitinnc* Percentage Payrolls netati sales Debits Aug. 1941 July 1942 Aug. 1941 July 1942 Aug. 1941 July 1942 Aug. 1941 July 1942 Aug. 1941 + + + + + 5 0 + 2 - 9 + 6 +16 - 5 - 7 — 8 +13 + 6 +17 - 4 + + + + + + + + + + + + +15 + 55 +11 - 31 +21 +218 - 1 - 52 +26 + 17 +45 + 42 +10 - 54 + 4 + 42 + 6 - 60 +54 - 38 +32 - 69 +46 - 9 +24 - 75 -62 —67 -63 -51 -69 + 13 -62 -77 -85 -53 +11 -74 -75 +21 +31 +28 +16 + 8 +24 +26 +20 +10 +15 - 7 - 3 +22 * Areas not restricted to the corporate limits of cities given here. Page Six l +28 + 4 7 9 7 6 2 5 6 2 3 5 3 3 l + + + + 1 3 1 1 2 1 0 0 1 2 1 3 1 1 July 1942 r-e* c.e <N ec August 1942 from month and year ago Allentown........... Altoona........... ... Harrisburg......... Johnstown.......... Lancaster...... Philadelphia.... Reading.. . Scranton....... Trenton___ .... Wilkes-Barre.... Williamsport___ Wilmington..... Y ork.............. .. . . Employment Building permits value + i + i + 3 -23 -15 -12 -19 + 17 i 5 1 8 0 - 6 - 4 +18 + 7 + 7 - 1 -20 + 1 -10 + 9 - 5 - 9 + 6 +13 + - TOTAL............................. Iron, steel and prod.. . Nonfer. metal prod. .. Transportation equip.. Textiles and clothing.. Textiles........................ Weekly working time* Hourly earnings* Aver Aver- Ch’ge age Ch’ge age hours 42 6 43.7 43.1 47.6 + + + + 38.6 36.5 41.4 37.5 42.3 39.2 38.6 39.5 37.7 + 5 0 +1 - 1 - 2 - 2 + 1 .670 .589 .712 .840 .631 .963 .650 .811 .936 +15 + 9 + 7 + 9 +10 +12 +14 + 9 + 4 + 13 + 1 .877 .798 + 18 + 9 Stone, clay and glass.. Lumber products......... Chemicals and prod.. . Leather and prod........ Paper and printing. . . Printing........................ Others: Cigars and tobacco. . Rubber tires, goods.. 42! 9 Musical instruments 44.5 * Figures from 2673 plants. 4 $.921 4 .997 .863 2 7 1.069 + 2 +13 +■ 9 +20 +19 Weekly earningsf Aver Gh’go age $38.97 +17 43.53 +13 37.17 +21 50.85 +28 +14 25.82 +17 21.58 + 8 29.66 + 12 31.51 + 9 26.37 +10 37.33 +10 25.03 +12 33.08 + 7 37.12 + 7 37.68 35.51 f Figures from 2863 plants. +33 +10 Distribution and Prices Adjusted for seasonal variation Per cent change Wholesale trade Unadjusted for seasonal Month Year ago ago Sales Total of all lines..................... Boots and shoes................... Drugs............ .......... ....... Dry goods___ _...... Electrical supplies................ Groceries........... .. Hardware..................... .. Jewelry.................................... Paper........... Inventories Paper........................................ Source: — 4 + 2 — 6 -11 — 3 4 — 2 - 2 - 5 +18 +10 —25 — 4 —21 —24 0 0 Indexes: Ang. July Aug. 1942 1942 1941 1935-1939 m 100 mos. 1941 +18 +16 + 12 +39 -11 +15 +25 + 8 +46 RETAIL TRADE Sales Department stores—District......... Philadelphia Women’s apparel............................. Men’s apparel.............................. •.. Shoe...................................................... Credit................................................... 152 152 132 114 205 119p 139 140 134 99 r 132 123 153 148 r 144 r 144 166r 163 r Inventories Department stores—District......... Philadelphia Women’s apparel............................... Shoe...................... ................................ Credit................................................... 196 199 174 109 240p 201 201 114 249 135 126 72 150 179 217 132 98 111 83 U. S. Department of Commerce. Prices Basic commodities (Aug. 1939 = 100).. Wholesale (1926 = 100)........... Farm............. Food........ ................... Other.................... Living costs (1935-1939 - 100).. United States. ..... Philadelphia............. Food.......... .. Clothing................... Rent....................... . Fuels......................... Housefurnishings. . Other........................ Source: » + 4 - 6 - 4 +15 - 6 - 4 + 3 +11 - 2 -28 + 4 - 8 + 2 -13 0 +47 FREIGHT-CAR LOADING9 Total.................................................. Merchandise and miscellaneous, Merchandise—l.c.l........................ Coal.................................................. Ore.................................................... Coke................................................. Forest products............................. Grain and products...................... Livestock........................................ Per cent change from Aug. 1942 Month Year Aug. 1939 ago ago 167 0 +10 +67 99 106 101 96 + 1 + 1 + 2 0 +10 +21 +16 + 5 +32 +74 +50 +19 117 117 124 126 107 104 122 111 0 0 + 1 0 0 0 0 0 +11 +11 +18 +19 + 2 + 1 +12 + 7 +19 +19 +33 +27 + 4 + 7 +21 +10 Not adjusted Per cent change August 1942 1942 from from MISCELLANEOUS Life insurance sales. Hotels—(1934 = 100) Occupancy.......................................... Income, total................................. .. . Business liquidations Number................................................ Amount of liabilities........................ Check payments................................. U. S. Bureau of Labor Statistics. Aug. 1942 from mos. 1941 + 9 +- 31 - 1 -218 +15 +13 +15 +11 +14 +25 + 9 - +55 - 3 +24 -27 130r 125r 131r 103 149r - 3 0 +50 +59 +33 + 6 +61 139 127 76 161 175 208 134 114 109 144 139 109 159r 158 202 141 93 91 - 2 - - 7 + 3 + 4 78 114 200 -13 - 5 - 4 ♦Computed from unadjusted data. 137 159 p—Preliminary. Aug. July Aug. 1942 1942 1941 8 Mouth Year ago ago 112 108 105 92 88 liar 177 177 169 111 226p 173 172 151 99 232 119 113 127 105 140 144 132 75 143 328 192 139 128 98 151 144 108r 152 275 178 148 110 94r 105 r 75 113r 86 77 r 109 123 110 99 f 109p 86 148 r -1 + 3 +22 +10 0 144 134 76 144 312 191 138 115 115 + 7 -27 - 6 70 75 96 + 8* +11’ + 8* 118 +13* 115 109 107 106 93 -32* 42 -57* 21 + 5 137 76 53 133 101 -- 51 --151 +1 + 7* 161 1942 from 6 - 9 -34 - -1 -15 +11 +13 +10 + 5 6 +13 + 7 - 6 + 5 +22* -45* -59* -61* -80* +17 r—Revised. +1 103 135 BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Reporting member banks (000,000’s omitted) Changes in— Sept. 23, Five One 1942 weeks year Assets Commercial loans.................. $ 271 Open market paper............... 29 l oans to brokers, etc............. 26 Other loans to carry secur.. . 33 Loans on real estate.............. 47 -* + - 8 1 2 2 1 -* 35 - 14 1 + i 5 Other loans............................... - 5 - Total loans........................ 92 19 $ 498 -115 -$ 73 Government securities.......... $ 769 Obligations fully guar’teed.. 68 Other securities....................... 250 +*31 + 4 0 +$355 - 28 - 17 Total investments................ $1087 +$35 +$310 Total loans & investments. $1585 Reserve with F. R. Bank. . . 420 Cash in vault........................... 27 Balances with other banks. . 108 Other assets—net.......... .. 66 +$20 - 12 0 - i 0 +$237 - 181 + 1 * - ii Liabilities Demand deposits, adjusted. $1409 Time deposits.......................... 163 U, S. Government deposits. . 20 Interbank deposits................. 381 +*17 - 2 - 25 + 16 +$141 - 94 Other liabilities...................... Capital account....................... + - + 15 218 2 1 * 5 i Changes Changes in weeks ended— Philadelphia Federal Reserve District (Millions of dollars) Aug. 26 Sept. 2 Sept. 9 Sources of funds: Reserve Bank credit extended in district .... Commercial transfers (chiefly interdistrict)... Treasury operations.............................................. - 3.2 +10.1 + 0.9 + 5.4 - 2.3 +14.2 + 3.0 + 8.7 + 8.8 - 3.3 +30.0 - 7.6 - 1.7 +45.6 -72.4 + 0.2 +92.1 -56.1 Total........................................................................ + 7.8 +17.3 +20.5 +19.1 -28.5 +36.2 + + - 5.0 3.1 0.3 0.0 +11.7 + 4.4 + 1.4 - 0.2 + 8.0 +14.5 - 2.0 - 0.0 + 2.6 +15. a - 0.0 + 0.7 + 5.0 -47.1 +13.7 - 0.1 +32.3 — 9.3 +12.8 + 0.4 + 7.8 +17.3 +20.5 +19.1 -28.5 +36.2 Uses of funds: Currency demand.................. ................................ “Other deposits” at Reserve Bank................... Other Federal Reserve accounts........................ Total........................................................................ Member bank reserves (Daily averages: dollar figures in millions) Held Re quired Ex cess Ratio of excess to re quired Phila. banks 1941: Sept. 1-15. .. 1942: Aug. 1-15... Aug. 16-31... Sept. 1-15... *578 448 418 424 *264 320 323 324 *314 128 95 100 119% 40“ 29“ 31“ Country banks 1941: Sept. 1-15. . . 1942: Aug. 1-15... Aug. 16-31... Sept. 1-15... $220 223 225 230 *113 153 157 157 $107 70 68 73 94% 46" 44“ 47“ Federal Reserve Bank of Phila. (Dollar figures iu millions) Sept. 16 Sept. 23 Sept. 23, 1942 weeks Changes in— Five weeks One year Bills discounted......... $ 0.3 Bills bought................ 0 Industrial advances.. 5.1 U. S. securities........... 251.9 - +* 0.2 0 + 1.5 + 80.0 Total........................... Note circulation........ Member bk. deposits U.S. general account Foreign deposits........ Other deposits........... Total reserves............ Reserve ratio............. -$ 4.5 + 35.7 - 9.3 - n.o - 4.2 - 12.8 - 59.0 h 0.9% +$81.7 +241.9 -173.8 - 1.8 - 32.2 + 8.1 - 44.3 - 5.5% $257.3 742.9 630.3 30.5 73.5 22.4 1261.3 84.1% -$ 0.0 0 0.1 4.4 ♦Reciprocal bank balances now reported net. Page Seven National Summary of Business Conditions INDUSTRIAL PRODUCTION 200 160 160 ISO 140 140 IIlU inn 100 Jo 80 1936 1937 1938 1939 1940 1941 1942 Federal Reserve monthly Index of physical volume of production, adjusted for seasonal variation, 1935-39 average=100. Latest figures shown are for August 1942. DEPARTMENT Industrial output continued to rise in August and the first half of Septem ber and retail distribution of commodities also increased. Prices of farm prod ucts and foods advanced further. Production. Industrial output increased in August and the Board’s seasonally adjusted index rose 3 points to 183 per cent of the 1935-1939 average. There were further marked increases in activity in the machinery, transportation equipment, and other armament industries. Crude petroleum production in creased considerably from the reduced level of recent months and output of manufactured food products rose more than is usual at this time of year. Production of materials, such as steel, nonferrous metals, coal, and lumber] continued in large volume. Value of construction contracts awarded in August declined from the record high levels of June and July, according to figures of the F. W. Dodge Corporation. The extent to which the continuing large volume of construc tion reflects the war program is indicated by the fact that in the first eight months of this year 84 per cent of total awards have been for publicly financed projects and in recent months the percentage has been higher. Distribution. Distribution of commodities to consumers increased considerably in August, reflecting particularly marked increases in department store sales and in sales of general merchandise in small towns and rural areas. Dollar value of sales to consumers in August was somewhat lower than the unusually large sales a year ago, when there was a considerable amount of anticipatory buying, while average prices were about 12 per cent higher. On the basis of physical volume, therefore, sales were smaller than a year ago. Railroad freight-car loadings were sustained at a high level during August and the first half of September, reflecting continued large shipments of most classes of freight. STORE SALES AND STOCKS Federal Reserve monthly indexes of value of sales and stocks, adjusted for seasonal varia tion, 1923-25 average~100. Latest figures shown are for August 1942. Commodity prices. During August and the first half of September the general wholesale price index advanced about half a point to 99.2 per cent of the 1926 average, reflecting chiefly increases in prices of livestock products. Prices of wheat, flour, and some other uncontrolled commodities also advanced. New crop tobacco prices showed sharp increases over last year and a temporary ceiling at current levels was established for flue-cured types. Retail food prices continued to rise from the middle of July to the middle of August and further increases are indicated in September. Prices of uncon trolled foods in August were 10 per cent higher than in May. MEMBER BANK RESERVES AND RELATED ITEMS Agriculture. Crop prospects improved considerably during August and aggre gate production this year is expected to be about 15 per cent greater than in 1941, which was close to a record year for crops. Unusually high yields per acre are indicated for most major crops and for some others, like oil-seed crops, substantially increased acreages are expected to be harvested. Feed grain sup plies are expected to be of record proportions, but owing to the growing number of livestock on farms the supply per animal will probably be about the same as last season. 1940 I94I Wednesday figures. Latest figures shown are ^ for September 9, 1942. EXCESS RESERVES OF MEMBER BANKS 8 \ k; 4 -------V 'M; i j-Jn V IUa1936 193? 1939 1939 1940 -v 1941 Wednesday 49— a. Easiest figures shown are ior September 9, 1942. Page Eight ‘MmA 0 Bank credit. Excess reserves of member banks, which have generally fluctuated between 2.0 and 2.5 billion dollars in recent months, rose temporarily to over 3 billion on September 16. This increase was due partly to a further reduction in reserve requirements on demand deposits at central reserve city banks from 24 to 22 per cent and partly to Treasury disbursements out of its balances with the Reserve Banks in connection with September 15 tax collections and fiscal operations. Funds for these disbursements arose in part from the issuance of special one-day certificates to the Reserve Banks. Excess reserves of New York City banks have been declining for a number of months owing principally to the excess of funds raised in that city by the Treasury over amounts expended there. The effect of this drain has been offset in part by purchases of Government securities by the Federal Reserve System and by the two successive reductions in reserve requirements. At banks outside New York City excess reserves have shown little change in recent months. These banks have lost reserves through currency drain and their required reserves have increased owing to growth of their deposits; both these factors, however, have been largely offset by transfers of funds from New York. Holdings of Government securities at New York City banks, which increased substantially in July and August, declined somewhat in the first half of Septem ber. At banks outside New York City holdings have continued to increase. United States Government security prices. The recent 3 billion dollar Treasury cash financing operation had little effect on the Government securities market, and prices continued steady. 1 4
@FedFRASER