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B usiness Conditions
in
the Philadelphia Federal
R eserve District
FEDERAL
OF
RESERVE
BANK
PHILADELPHIA
October 2, 1918
EN ERAL conditions throughout the district continue favor
able, trade in most lines surpassing last year’s records. The
expectation is for an excellent fall business, as the working
classes are in receipt of good wages, and there is an inclination on
the part of the public to anticipate a further rise in the prices of
goods.
G
Manufacturers in all important lines are operating to the fullest
extent permitted by the available supplies of materials and labor.
Retailers report a steady demand for all kinds of staple com
modities, but they are experiencing increasing difficulty in obtain
ing sufficient merchandise to meet the requirements of their cus
tomers. Retail distributors of women’s wearing apparel are doing
a large business, the demand for high-class goods being greater
than ever before.
Wholesale dry goods houses report the receipt of large orders,
but in some instances, actual sales have been running behind last
year, owing to the physical impossibility of getting out orders, due
to the deficiency in the supply of labor. Collections are said to be
very good, and the fall and winter outlook is excellent.
The transportation situation continues to show improvement.
Total freight car movements over the Pennsylvania Railroad dur
ing August, at Lewistown Junction, amounted to 207,088 cars,
compared with 210,575 in July (the record figure), and 173,932
during August, 1917. Eastbound bituminous coal increased 34.9
per cent, compared with August of last year; miscellaneous west
bound fell off 30 per cent.
It is estimated that if the coal production can be maintained at
the average level of the last three months, during the rest of the
year, requirements will have been met. Anthracite operators and
miners are working most industriously to meet the emergency. This
is indicated by the statement of shipments for the month of August,
as reported to the Anthracite Bureau of Information, which estab
lished a new high record for that month, the quantity sent to the
market being 7,180,923 tons, compared with 7,084,775 in July, and
166,927 tons in excess of the shipments for August, 1917. Total
shipments for the first five months of the present coal year, begin
ning April 1, 1918, have amounted to 34,388,986 tons, compared with
33,297,109 tons for the corresponding period last year, a gain of a
little over 3 per cent.
Bituminous production is being maintained at a high tonnage,
but is not sufficient to allow any margin of safety over the demands
as estimated by the Fuel Administration.
Production of steel during August was about 80 per cent of
capacity, the falling off being due chiefly to the unusually hot
weather.
The raw cotton market has been unsettled by the price-fixing
plans. The demand for cotton yarns by mills engaged on Govern
ment work is greater than the supply. The Government has entire
control over the wool business.
Hosiery and underwear mills are busy. The Government needs
for hosiery have been well taken care of; mills can now work on
civilian trade, but it is said that they hesitate to take advance
orders for this class of business, fearing they will be unable to
obtain fuel and materials which are readily furnished to concerns
doing Government work.
The chemical market has been fairly active. Dyestuffs are in
excellent demand. Manufacturers of paint report that a satisfactory
business is being done with the various Government departments,
and the outlook is for increasing orders from these sources. Domes
tic consumption of painting materials continues disappointing, due
to the curtailment of building operations.
Advices from Lancaster county indicate a remarkable growth
in tobacco during the past month, and the crop is pronounced both
by growers and packers as of unusually fine quality. Buyers, how
ever, are holding back, expecting a break in prices on account of the
large increase in the number of pounds on hand. Labor troubles
are being relieved somewhat by the use of a new machine for mak
ing cigars.
The commandeering by the Government of 60 per cent of the
butter in cold storage resulted in considerable competition by deal
ers for supplies of butter, and prices rose rapidly. It is thought that
the advance in prices would not have occurred if the Government
had requested butter each week or each month, as it was needed,
there being no immediate need for the large quantity of butter
which was taken over.
Money rates have remained firm, being quoted at 6 per cent.
Banks are buying little or no paper from brokers and loans are
being scrutinized closely.
Discount operations at the Federal Reserve Bank during
August exceeded previous records, total loans and discounts
amounting to $165,420,382, of which 67 per cent were notes secured
by Liberty bonds or certificates of indebtedness. Acceptances pur
chased amounted to $4,432,670.
The Federal reserve note circulation of the bank, at the end of
August, amounted to $185,594,395, an increase for the month of
$20,904,800, compared with $43,202,660 outstanding on August 31,
1917.
The combined reserve against deposit and note liability aver
aged 63.72 per cent during the month of August.
STATEMENT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA
RESOURCES
Gold coin and certificates
Gold with foreign agencies
Total gold held by Bank
Gold with Federal Reserve
Gold redemption fu n d . . . .
Sept. 20,
1918
Previous Month
Year ago
$185,760
69,604,585
408,021
$279,127
48,480,534
408,022
$17,784,320
30,276,000
3,675,000
70,198,366
49,167,683
51,735,320
1 1 1,1 10,950
5,000,000
1 13,780,150
5,000,000
32,000,635
950,000
186,309,316
167,947,833
84,685,955
Legal tender notes, silver,
873,187
730,730
1,201,988
187,182,503
168,678,563
85,887,943
Bills discounted— members.
Bills bought in open market
101,639,467
9,043,824
85,182,612
1 1,035,313
13,617,599
16,434,145
Total bills on hand. ..
1 10,683,291
96,217,925
30,051,744
1,347,550
1,347,550
877,200
3,220,500
1,210,500
3,231,000
4,568,050
2,558,050
4,108,200
1 15,251,341
98,775,975
34,285,881
42,532,321
10,784,722
43,607,185
2,500,297
30,742,436
42,532,321
54,391,907
33,242,733
150,000
1,452,595
50,000
1,623,480
289,079
346,568,761
323,519,925
153,705,636
$7,351,450
$7,151,350
$5,267,900
15,681,884
13,628,091
1,690,609
89,047,327
34,951,238
82,558,678
38,092,194
70,532,477
28,397,202
139,805,834
134,278,963
100,620,289
1,639,698
258,413
196,028,280
1,743,498
180,426,000
1,405,200
47,258,985
558,465
346,568,761
323,519,925
153,705,636
63 .8 1 %
64 .7 5 %
74 .05%
U.
S.
Government
long-
U.
S.
Government
short-
Total U. S. securities.
% M
• •
|
Total earning assets . . . .
125,937
Due from other Federal re-
Deductions from gross deDue from Treasury of U. S.
5% fund Federal reserve
bank n o t e s ......................
LIABILITIES
Government deposits . . . .
Due to members----reserve
Collection i t e m s .......... * . .
Due to other Federal re-
125,385
Total gross deposits.
Federal reserve bank notes
in actual circu lation .. . .
Federal reserve notes in
All other lia b ilitie s ............
Total lia b ilitie s ..........
Reserve against all liabili
ties .....................................
STATEMENT SHOWING THE PRINCIPAL RESOURCE
AND LIABILITY ITEMS OF MEMBER BANKS
IN PHILADELPHIA, SCRANTON,
CAMDEN AND WILMINGTON
A t th e clo s e o f b u sin ess
S ept. 20, 1918 A u g . 16, 1918
(0 0 0 ’ s o m itte d )
Number of banks reporting...................................
52
50
United States bonds to secure circulation........ $11,492
$12,770
Other United States bonds, including Liberty
bonds ................................................................
30,392
30,601
United States certificates of indebtedness..........
73,664
49,703
Total United States securities owned........ 115,548
93,074
Loans secured by United States bonds and cer
tificates ..............................................................
47,043
44,225
All other loans and investments............................. 618,000
620,256
Reserve with Federal Reserve Bank.....................
57,542
66,063
Cash in vault............................................................
20,904
21,004
Net demand deposits on which reserve is com
puted .................................................................. 616,738
578,632
Time deposits ..........................................................
16,579
14,421
Government d ep osits...............................................
37,897
42,451
BUSINESS INDICATORS
Percentage increase or decrease compared with
September 20, 1918
Philadelphia banks:
Loans ................................
Deposits ...........................
R a t i o ..................................
$624,260,000
638,900,000
98%
Previous month
+
1
+ 5
{Actual) 101%
Year ago
+ 12
—
1
(Actual) 87 '/o
Federal Reserve Bank:
Discounts and collateral
loans— members . . . .
Cash r e s e r v e ....................
90-day discount rate. . .
Com mercial paper ............
-f
+
(Actual)
7
2
%
(Actual)
4%
(Actual)
6%
(Actual)
5% %
89,866,000
64%
4
6%
+ 500
— 13
Percentage increase or decrease compared with
August, 1918
Previous month
Year ago
Bank clearings:
In Philadelphia...............
Elsewhere in district. . .
Total .............................
$1,734,638,000
107,676,000
— 2
— 7
+
+
27
16
$1,842,314,000
— 2
+
26
$1,931,000
-F 69
+
24
—
1
+
28
29
(Actual)
49
+
2
+ 0.3
— 0.3
+
4+
8
8
14
Port of Philadelphia:
E x p o r t s .............................
I m p o r t s ..............................
Building permits — Philadelphia .............................
Post Office r e c e i p t s—
Philadelphia ....................
Commercial failures in district (per Bradstreet’ s) .
Com m odity prices:
Annalist, September 21. . .
Dun’ s, September 1..........
Bradstreet’ s, September 1
939,000
32
295.635
232.882
19.0485
(Actual)
1
Compiled September 24, 1918
The purpose of this report is to provide member banks and the
business community in general with a brief monthly review of prevailing
business conditions in this particular Federal reserve district.
@FedFRASER