The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA Jgg| Jg[| RESERVE DISTRICT SEPTEMBER i, i93i By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Industrial production and factory employment declined by somewhat more than the usual seasonal amount in July, while the general level of com modity prices remained unchanged. Conditions in the money market con tinued easy. Production and employment. Indus trial production, as measured by the Board’s index, which is adjusted to allow for the usual seasonal variations, declined one per cent further in July to 83 per cent of the 1923-1925 aver age, compared with the low point of 82 for last December and the year’s high point of 90 in April. Output of iron and steel, automobiles, lumber, and copper decreased further, while activ ity at textile mills and shoe factories was maintained at a high level. Factory employment and payrolls declined by somewhat more than the seasonal amount from the middle of June to the middle of July. Large de creases in employment were reported at car building shops and machinery and automobile factories, and at lumber mills. In the textile industries INDUSTRIAL PRODUCTION Index number of industrial production, ad justed for seasonal variation. (1923-1925 average = 100.) as a whole employment decreased some what less than usual in July; and there were increases in employment in the woolen goods and men’s clothing in dustries. Figures in the value of building con tracts awarded during July and the first half of August, as reported by the F. W. Dodge Corporation, show a con tinuation of the downward movement of recent months. Department of Agriculture esti mates based on August 1 conditions indicated an unusually large crop of winter wheat, an exceptionally small yield of spring wheat, and a total wheat crop of 894,000,000 bushels, 72,000,000 bushels larger than the fiveyear average. The corn crop was estimated at 2,775,000,000 bushels, about the usual size, and 700,000,000 bushels larger than last year’s small crop. In spite of a 10 per cent reduc tion in acreage, the cotton crop was estimated by the Department of Agri culture to be about 15,584,000 bales, an increase of 1,600,000 bales over last year. RESERVE BANK CREDIT AND FACTORS IN CHANCES Monthly averages of daily figures. Latest fig ures are averages of first twenty days in August. Distribution. Freight car loadings increased by slightly less than the usual seasonal amount in July and de partment store sales, which ordinarily decline sharply at this season, appar ently decreased somewhat more than usual. Wholesale prices. The general level of wholesale prices in July continued at 70 per cent of the 1926 average, ac cording to the index of the Bureau of Labor Statistics. Increases were re ported in the prices of livestock and WHOLESALE PRICES Index of United StateB Bureau of Labor Statis tics (1926=100). MEMBER BANK CREDIT Monthly averages of weekly figures for reportmg member banks in leading cities. Latest figures are averages of first two weeks in August. meats, while prices of building ma terials and of grains, particularly wheat, declined. During July and the first half of August, prices of cotton and cotton textiles declined sharply, while prices of dairy products in creased. Bank credit. Loans and investments of reporting member banks in leading cities declined by about $340,(100,000 between July 15 and August 12, re flecting chiefly further liquidation of loans on securities, and a decrease in all other loans, which was partly a consequence of sales of acceptances to the reserve banks. The volume of the member banks investments also showed a slight decline for the period. At the reserve banks there was an increase in the total volume of credit of $190,000,000 between July 15 and August 19. Demand for reserve bank credit during this period increased as a result of an outflow of $144,000,000 of currency, which was larger than is usual at this season, and further trans fers of foreign funds from the open market into balances at the reserve banks. This demand for reserve bank credit was met by the reserve banks for the most part through the purchase of bills and United States Government securities in the open market, but also through increased discounts for mem ber banks. Money rates remained at low levels. Business and Financial Conditions in the Philadelphia Federal Reserve District Business was exceptionally quiet in July but there was a little seasonal im provement in early August. Manufac turing continues at relatively low levels, though normal gains have oc curred in a few lines producing chiefly consumers’ goods. Construction ac tivity and new awards for buildings increased noticeably in July, exceeding the volume of a year ago, but in August there was a marked decline in contract awards. The coal market has been rather dull and production of anthracite has declined further while that of bituminous coal increased slightly. Condition of farm crops con tinues satisfactory. Wholesale and re tail trade was somewhat more than seasonally smaller in July but showed some upturn in August. Shipments of goods have remained in smaller vol umes than for several years. Changes in the banking figures of the district have not been large during the past month. A small increase in the demand for currency was in line with expectations at this season. The quiet business situation has been ac companied by a further small decline in member bank loans to customers; borrowings from the Federal Reserve Bank have not fluctuated materially for several months past. Manufacturing ac tivity shows a slight improvement over the exceptionally low level that pre vailed in July. The demand for finished goods continues slow in spite of some betterment in the market for such con sumers’ goods as wool manufactures, floor coverings, shoes, rubber tires and mechanical rubber goods. Prices of finished products show signs of firm ness and in July they remained prac tically unchanged from the June level. Quotations for raw materials declined Manufacturing. Page Two only fractionally, while those for partly manufactured products advanced a little. Inventories at manufacturing plants appear moderate and generally smaller than at the end of June; they also have been reduced from those of a year ago. National stocks of com modities have declined steadily since the end of 1930; the latest index shows that holdings of manufactured goods were 4 per cent lower than a year earlier, while stocks of raw materials were 8 per cent higher, although the seasonal decline in the latter has con tinued since the beginning of this year. Employment, working time, and pay rolls in factories of this section reached the lowest level in many years, declines in July being more than usual for the third successive month. Local fac tories reduced their working forces by over 2 per cent, and the wages paid by 8 per cent from the June level, re flecting partly a period of vacations and mid-year inventory taking. Simi larly, factory employment in the coun try declined 2.5 per cent and payrolls 5.4 per cent from June to July. The index for this district stood at 73 per cent of the 1923-25 average for em ployment and 58 per cent for wage payments, indicating declines of 17 and 30 per cent respectively from July 1930. Output of manufactures continued downward, productive activity in July being 3 per cent smaller than was to be expected. Exceptionally large de clines occurred in production of cigars, building materials, fabricated metal products, and paper and printing. A rather unusual gain occurred in the activity of the leather and shoe indus try, following a sharp decline in the preceding month. More than seasonal gains also were noted in the output of foods, radio and musical instru ments. In comparison with a year ago manufacturing activity was 21 per cent lower. The most extensive cur tailments were reported by groups comprising metal products, transpor tation equipment, building materials, tobacco products, paper and printing, and radio and musical instruments. The smallest relative declines, on the other hand, occurred in the manufac ture of leather and textile products. The July index of factory activity of this district was the lowest in the last decade. Among the individual industries, the output of steel works and rolling mills, and blast furnaces declined by slightly smaller amounts than is customary, although employment and? payrolls showed sharp decreases. Production of silk and cotton manufactures held its own, while that of wool products and knit underwear showed more than the usual gain from June to July. Hosiery, carpets and rugs, and men’s clothing reported further declines. In the food group, there occurred an extraordinary rise in the index of sheep slaughtered, though cattle slaughter ings, too, increased more than usual for July. Activity of ice cream plants and sugar refineries also was up to the sea sonal level, while bread and bakery products, canning and preserving, and hog and calf slaughterings failed to maintain the normally looked for levels. Production of brick measured up to the volume customary for July, while that of cement continued the excep tional decline of the few previous months. Shipments of cement were WAGE PERCENT ALL PAYMENTS MANUFACTURING IRON AND STEEL —PRODUCTIVE ACTIVITY INDUSTRIES PHILADELPHIA FEDERAL RESERVE 1923—• !5. AVG.—100 DISTRICT PERCENT 1923 —25 AVG =100 •DELAWARE STEEL NEW JERSEY' PIG IRON PENNSYLVANIA ADJUSTED FOR 1930 SEASONAL VARIATIONS 1932 1931 1932 Source: Iron Age. also noticeably smaller, while stocks were somewhat larger in July this year than last. This was also true for the country with the exception of cement stocks which were slightly smaller than a year ago. The chemical industry on the whole was less active in July than June, the present level of productive activity being the lowest since the latter part of 1925. Operations of plants making chemicals and drugs declined further and continued substantially below last year. There was some seasonal in crease in the output of explosives but the output of by-product coke, paints and varnishes, and petroleum products was less than in June. Electric power Philadelphia Federal Reserve District 11 Systems July, 1931, per cent change from July, 1930 June, 1931 Rated, generator capacity............ + 1.7 0.0 Generated output.......................... Hydro-electric............................ Steam....................................... Purchased......................................... + 4.9 +55.3 -14.3 4-47.2 - 0.4 -22.8 + 7.3 4" 6.5 Sales of electricity.................. .. Lighting............................................ Municipal............................ Residential and commercial Power............................................ Municipal............................... Street cars and railroads . . Industries.................................... All other sales...................... -f 2.6 +11.8 + 8.0 +12.3 - 3.2 - 6.1 - 6.4 - 2.5* +44.0 + - 1.1 4.9 0.2 5.4 1.2 7.8 - 0.5* + 7.7 * Working days average—other items are com puted on calendar days. Consumption of electrical energy for industrial power purposes declined slightly in the month and was 3 per cent smaller than in July 1930. Marked percentage declines also oc curred in the use of electric power by July, 1931 Percentage change since BUSINESS INDICATORS Philadelphia Federal Reserve District Amount June, 1931 Retail trade*—estimated net sales (160) stores Department (68)............................................................... Men’s apparel (23)........................... ........................................................................... Women’s apparel (15)............. ....................................... .................................... shoe (37)............................................;;;;..................................................................... Credit (17)................................................... !!!!!!!.!!!!!.!!! ..................... Wholesale trade*—net sales (101 firms)................................ Boots and shoes (5)............................ Drugs (io)......................................... Dry goods (12)............. ................. ■ ... Electrical supplies (8)............................... Groceries (29)............................................’ ’ Hardware (20)...........................................’ ’ ’ ’ ' ^ Jewelry (10)................................ ” ] ’ ’ Paper (7)............................................................................................................................ Productivity activity*— Employment—840 plants in Penna...................................... Wage payments (weekly average)............................ ........... Shoe productionf—73 factories................... .......................................... *prs' ' Hosiery productionf—136 mills......................... ...................doz prs ’ Underwear productiont—53 mills......................................... doz’ pcs’ ' Wool consumptionf—61 mills.. .................................................... lbs Active cotton spindle hours............................ .. ............................................... Pig iron production.....................................................................................tons Iron casting production—31 foundries..............tons Steel casting production—9 foundries................ * ' tons Anthracite.............................................................................................. * ’ tons' ' Bituminous coal—Penna.................................. ..................... ^ons ' Petroleum receipts at Port of Philadelphia..................................bbLs Cement................................................................................................!!!!.'; ’.bbls! ! Electric power output—10 systems...........................;............ .. . KWH!! $.518,300 $447,100 $17,400 $35,100 $8,900 $9,800 - 33.9 33.6 32.0 40.8 27.6 30.0 - 8.0 - 7.4 - 12.6 - 8.1 - 24.1 - 6.8 $230,577 $2,296 $51,217 $8,787 $14,477 $93,379 $42,581 $4,968 $12,872 + + — + 2.7 20.2 2.2 16.4 19.0 3.6 12.1 36.2 0.5 + - 254,157 $5,141,812 41,932 46,004 12,643 265,364 531,805 3,575 78 75 151,800 308,800 40,400 86,290 16,813,000 + + + + + - 2.7 8.3 0.9 20.5 14.2 6.5 2.6 6.4 6.6 11.0 13.2 3.5 21.3 10.7 0.4 - 17.2 - 31.5 Financial and credit— Debits (check payments) *—17 cities........................... $83,677,100 Loans and investments—middle of August—85 member banks'' ‘ $1,692,000,000 Bills discounted held by i. R. B. of Phila. (daily average) $16,450,000 Bankers acceptances outstanding—end of month.......................... $21,140,000 Commercial paper sales*—4 dealers.................................................... $305,306 Commercial failures—number....................................... ’ ’ ] 152 Commercial failures—liabilities............. !!!!!!!!!!!!!!!!!!!!!!!! $9,410,631 Building and real estate— Building permits*—17 cities........................................................... Building contracts awarded*....................................... Number of real estate deeds recorded* (Philadelphia county). Value of mortgages recorded* (Philadelphia county)............... ’ Sheriff sales writs issued for August—(Philadelphia county).......... Miscellaneous*— Freight car loadings (Allegheny district).................................. Sales of life insurance (Penna., N. J., and Del.).............!!!...!!!! Automobile sales registrations of new passenger cars............................ J uly, 1930 + 10.4 28.3 3.0 7.4 3.4 7.4 15.9 38.5 15.7 12.0 42.6 38.6 44.0 29.0 18.6 34.6 25.0 4.9 - 8.4 - 0.4 - 15.0 - 11.1 +161.2 + 76.7 +302.6 - 14.9 + 4.8 - 32.5 + 2.2 - 70.7 + 58.3 +274.5 $552,800 $1,232,400 163 $266,796 1,463 +306.0 + 77.5 - 5.8 - 18.0 - 18.7 +150.1 + 45.3 - 5.8 - 46.8 + 15.8 24,046 $3,421,300 12,630 - 0.2 - 20.6 - 16.5 - 22.9 - 22.3 - 8.5 * Daily average of monthly figures. t Bureau of the Census preliminary figures. Page Three TEXTILE UNITED SILK FIBERS STATES DOLLAR' PIECE GOODS STATES UNITED PERCENT 1925-27—100 COTTON STOCKS WOOL SALES 1930 1927 Sources: Department of Commerce, Fairchild's Publications, Dun’s Review street cars and railroads, and by mu nicipalities. Sales of electricity for lighting, on the other hand, were larger than a year ago. Detailed compari sons are shown in the table. Building and real estate. Activity in the construction and contracting in dustry continued to gain during July; both employment and payrolls showed more pronounced increases between June and July of this year than in the corresponding period of 1930; present rates of operation, however, are still substantially lower than in other years. The most pronounced improvement last month occurred in the construc tion of buildings; street and highway operations also increased noticeably, while general contracting work showed a small gain in employment and a de cline in payrolls. In the Philadelphia area both the number of workers em ployed and the total weekly payrolls were substantially larger than in June. The proposed expenditure under permits issued in seventeen cities of this district increased sharply during July and was the largest of any month Per cent change from Contracts awarded 1931 (000’s omitted) Philadelphia............................. $ 42,463 2,635 683 1,777 Camden....................................... 1,884 Trenton. . .................................. 2,554 Wilmington............................... 76,756 “ All other”............................... Total: Phila. F. It. Dist. including all cities........... 1930 1926 29 aver age -55.9 -|-50.7 -77.7 -30.0 -27.9 -35.7 -41.6 -66.1 -36.6 -75.7 -74.0 -68.9 -43.1 -42.5 128,752 -46.7 -54.6 F. W. Dodge Corporation Page Four 1928 1930 Source: Silk Association of America since April 1930. The value of con orchard fruits remains generally sat tracts awarded for new construction isfactory, with indicated yields com also was substantially larger than in paring favorably with those of other June and' showed a gain of about 48 years. Pastures and meadows are in per cent in comparison with July 1930. fair condition, although a little short Awards in the first half of August, in some sections. however, declined and were consider Because of relatively low prices re ably smaller than a month or year ago. ceived by farmers for milk, the dairy The number of deeds and the value ing situation is said to be unsatisfac of mortgages recorded in Philadelphia tory; herds, however, are fairly healthy declined last month and were the and yields of milk and butter compare smallest of any July in recent years. favorably with those a year earlier. Foreclosures in August declined sharply from the unusually high point Aug. 1, Region and principal 1930 1931 of the preceding month, but remained crops Yield Estimated (Figures in thousands) exceedingly numerous in comparison yield with other years. Federal ReThe real estate situation shows little Philadelphia serve District Corn........................ bushels 53,772 25,969 change. Renting demand for houses Wheat (winter) . “ 20,248 19,618 and apartments has been quiet and Oats......................... “ 21,984 19,485 23,077 Potatoes (white) “ 18,804 sales of properties continue at a rela 57,772 Tobacco................ pounds 39,372 2,503 Hay (tame).... tons 2,361 tively slow rate. Mortgage funds re main scarce in certain sections of this United States Corn........................ bushels 2,093,552 2,776,301 district and prospective buyers are 775,180 Wheat (winter) . “ 612,268 Wheat (spring).. “ 118,402 251,162 still experiencing difficulty in financ 1,169,657 Oats......................... “ 1,358,052 ing their purchases. 370,580 Potatoes (white) “ 343,236 Tobacco................ pounds 1,616,793 1,641,437 77,587 Hay (tame).... tons 77,850 Agriculture. Despite variable Cotton....................bales 13,932 15,584 weather, agricultural conditions remain generally satisfactory. Recent rains Source: U. S. Department of Agriculture replenished soil moisture and brought relief from the drought, which in some Coal. Summer dullness continued in sections had been retarding the growth evidence in the anthracite market dur of crops. ing July. Prices of domestic sizes in Large gains over last year are indi creased, as is usual, while quotations cated in the yield of corn and potatoes; for steam sizes showed little change. the output of wheat in this district has The daily output of collieries declined been a trifle less than last year but in sharply and the total production of the country it was the largest on rec 3,948,000 tons was the smallest of any ord. Production of tobacco, chiefly in month since February 1926, when Lancaster county, is estimated to be labor difficulties interfered with the about 48 per cent above the actual output. Weekly production in the first harvest of 1930, while national output half of August averaged slightly is slightly smaller. The condition of under that of July, but remained REAL ESTATE OUTPUT or BOOTS PHILADELPHIA DEEDS and SHOES RECORDED ------ PHILA. FED- RES. DIST. ------- 4000 7 (In RECORDED millions or dollars) ' i i i SHERIFF SALES UNITED STATES 9 23-25 AVG—100 192 7 1928 1930 1928 Source: Philadelphia Heal Estate Board noticeably lower than in recent years. Shipments of hard coal also declined last month and were smaller than a year earlier. Demand for Pennsylvania bitumi nous coal was not active during July and prices showed little change from the June levels. Output of collieries was somewhat larger than in the pre ceding month but smaller than in July 1930. During the first fortnight of August there was a further slight in crease in production. Shipments for the country as a whole averaged higher than in June but were noticeably smaller than in the same period of the past three years. Distribution. Retail sales in July de clined from June somewhat more noticeably than was to be expected, de creases ranging from 11 per cent for Altoona to 38 per cent for Philadel phia. While some improvement was noticeable in early August, dollar sales in the aggregate continued smaller than those in recent years. Prices have continued downward and the average is estimated to be about 10 per cent lower than seven months ago. The dollar volume sold was 8 per cent less than in July 1930, the sharp est declines occurring in the sale of shoes and men’s apparel. Business was also 9 per cent smaller in the first seven months of this year than last, declines varying from 6 per cent for credit stores to 19 per cent for shoe stores; among the city areas, Johns town, Allentown, Bethlehem and Eas ton, Altoona, Philadelphia, and Lan caster showed the largest declines. Inventories at retail stores were 7 per 1929 1930 Source: Department of Commerce, Bureau of the Census cent smaller in July than June, all lines except credit stores re porting red u ctions. Compared with a year ago, stocks were 13 per cent lower, decreases being fairly uniform in all the four lines shown in the ac companying table. The rate of turn over has been higher than last Percentage change Retail trade Philadelphia Federal Reserve District July, 1931 Net sales: 1931, compared with 1930 July Rate of turnover seven months Stocks: July 31, 1931, compared with Seven months July 31, 1930 June 30, 1930 1931 1931 All reporting stores................... - 8.0 - 8.6 -12.9 - 7.4 2.11 2.24 Department.................................... in Philadelphia........................ outside Philadelphia............ Men’s apparel.......................... in Philadelphia........................ outside Philadelphia.. . Women s apparel........................ in Philadelphia........................ outside Philadelphia............. Shoe............................. Credit................................................. - 7.4 - 8.3 - 5.5 -12.6 -10.1 -13.9 - 8.1 - 8.5 - 5.8 -24.1 - 6.8 - 8.4 - 9.4 - 5.8 -12.9 -16.2 -10.6 - 7.5 - 7.7 - 6.4 -18.6 — 5.5 -12.8 -11.3 -15.7 - 7.0 — 6.5 - 7.9 2.10 2.22 2 31 2 39 1.68 1.88 -10.8 -13.9 -14.7 -10.0 -13.3 -11.7 - 7.4 1.21 1.26 -17.8 3.66 4.05 -18.4 3.90 4 .39 -15.3 2.28 2.29 - 4.4 1.62 1.57 + 1.0 1.27 1.47 WHOLESALE TRADE Philadelphia Federal Reserve District July, 1931 (Percentage change is indicated by + and — signs) Boots and shoes Drugs -25.5 - 4.3 -14.5 -11.3 -20.2 -28.3 - 2.2 — 3.0 -16.4 - 7.4 +19.0 + 3.4 39.1 49.0 54.5 95.8 98.0 98.8 39.8 47.6 43.0 78.2f 65.7t 47.7 57.0 06.5 101.9 102.1 105.1 51.7 51.7 55.8 95.4t 80.lt -11.0 - 7.8 - 1.8 -21.6 -13.9 - 4.7 - 6.2 -22.0 - 1.0 — 1.4 - 5.2 - 7.2 -13.2 -12.9 + 3.9 — 4.1 - 3.0 -13.6 Dry goods Elec trical supplies Grocer ies Hard ware Jewelry -13.1 -18.4 -31.6 -18.4 + 3.4 - 7.4 -12.1 -15.9 -36.2 -38.5 + 0.5 -15.7 93.2 90.0J 100.7 60.9 69.3 72.4 30.3 47.5 49.3 66.9 66.6 79.4 92.3 88.2 J 99.7 62.8 66.6 74.6 44.6 72.5 71.2 69.4 84.5 - 1.3 - 7.3 - 2.1 -11.0 + 3.5 -21.9 + 0.7 -12.5 +11.2 - 8.1 + 2.7 - 6.6 - 3.5 -14.4 - 8.5 -19.7 - 0.7 - 6.5 - 5.7 + 6.1 + 9.9 -13.7 - 7.3 -18.0 +15.2 -34.4 - 2.7 -21.8 Paper Net sales— Seven months 1931 com pared with seven months 1930........................................... July 1931 compared with: June 1931.............................. July 1930............................... Actual index* July 1931............................... June 1931.............................. July 1930............................... Seasonally adjusted index* July 1931............................... June 1931.............................. July 1930.......... ................... Stocks—July 31, 1931 Change from: June 30, 1931...................... July 31, 1930....................... Receivables—July 31, 1931 Change from: June 30, 1931...................... July 31. 1930....................... Collections during July 1931 Change from: June 1931.............................. July 1930............................... * 1923-1925= 100 t Preliminary I Revised Page Five year in virtually all the trading areas of this district. Retail prices of food in Philadelphia showed no change from June to July, while in Scranton there was a small decline as against an increase of about one-half of one per cent for the couiv try as a whole. In comparison with a year ago, food prices in Philadelphia were 13 per cent and in Scranton 18 per cent lower, while the average for 51 cities in the country was 17.5 per cent lower. Business at wholesale during July declined seasonally, with exceptional recessions occurring in the sale of jewelry, shoes, and hardware. Sales of electrical supplies were larger than usual, and the decline in dry goods, drugs and pharmaceuticals was no greater than customary. The business in paper increased slightly instead of declining as was to be normally antici pated. There was little change in wholesale trade in early August, al though some lines, particularly dry goods, showed a seasonal upturn. Wholesale and jobbing business has been noticeably smaller in the first seven months of this year than last, and in July the drop amounted to 10 per cent as compared with July 1930. This recession in the dollar volume of sales corresponded with the further de cline in wholesale prices in virtually every line included in the accompany ing table. With the exception of jewelry and paper, stocks were reduced further and were smaller than a year ago in all lines, the largest declines taking place in dry goods and jewelry. Ac counts receivable in July were larger for electrical supplies and groceries but smaller in other lines than in June; compared with a year ago, they were reduced in all lines. Collections in drugs, groceries, and jewelry in creased, while in shoes, dry goods, electrical supplies, hardware and paper they decreased from June to July; in comparison with July 1930, collections in electrical supplies alone showed a gain. Railroad shipments of commodities in this section during July declined slightly which is contrary to the usual seasonal tendency; they were also 23 per cent smaller than in July 1930. There was no indication of any marked change in the figures for early August, when ordinarily car loadings show a pronounced seasonal gain. In the first. Page Six seven months of this year revenue car loadings were 21 per cent less than last year. The decline in the country was equally sharp, and the surplus of freight cars is reported as being excep tionally heavy. Sales of new passenger automobiles, as measured by registrations, were 17 per cent smaller in July than June, this drop being somewhat less than usual. The market for used cars continues relatively stronger than for new auto mobiles. Prices of automobiles con tinued virtually unchanged from June but were 6 per cent lower than in July 1930. Commercial failures in this district during July were exceptionally heavy. The number of defunct concerns was the fourth largest in the past fifteen years and liabilities of $9.4 millions were exceeded only once in this period — March 1923 — when insolvencies amounted to $10.6 millions. Over the past four months there has been no mate rial change in the borrowings of mem ber banks from the Federal Reserve Bank, and its reserve ratio has been consistently above 80 per cent. Mem ber bank loans to customers have tended slowly downward and rates on prime commercial loans in this city have continued to fall mainly within a range of 3j4 to 4j4 per cent. During the four weeks ended August 19 there was a slight increase in the demand for currency which was about in line with the usual change in this period. The principal demand for funds was the result of an excess of 10 millions in local Treasury collec tions over disbursements within the district. This demand was almost bal anced by gains in the settlement of Financial conditions. Changes in— Federal Reserve Philadelphia (Dollar figures in millions) Bills discounted for banks in Philadelphia...................... Other communities. Aug. 19, 1931 *4.9 13.3 Total bills discounted *18.2 Bills bought.................... 9.6 United States securities.......................... 54.5 0.5 Other securities............ Total bills and securities.................. $82.8 Member bank reserve deposits. . 144.6 Foreign bank deposits 16.4 Cash reserves................ 261.0 Reserve ratio................. 83.7% Four weeks +S1.7 - 0.1 +$1.6 + 6.4 0 0 One year + *4.2 - 2.6 + $1.6 + 9.6 + - 2.2 0.5 +*8.0 +$12.9 - 0.8 +10.4 + 3.7 - 2.6% + 1.5 + 15.9 + 29.3 - 2.4% commercial and financial transactions with other districts, which probably were due in part to withdrawals by the banks from deposits maintained in other sections. Only a slight increase in borrowing from the Federal Re serve Bank was necessary to complete the balance between the demand and supply of funds; on August 19 bills discounted by this bank amounted to 18 millions, an increase of less than 2 millions in comparison with July 22 and a year ago. The Federal Reserve Bank reports slight change in total holdings of United States securities, but a rise of 6 millions in its participation in system holdings of acceptances. Participating in other accounts of the system, there was an increase from 6 to 16 millions in foreign bank deposits and a de crease from 29 to 22 millions in the bank’s contingent liability on bills pur chased for foreign correspondents. The loans and investments of mem ber banks in Philadelphia, Camden, Scranton and Wilmington show only a trifling rise from 1,360 to 1,361 mil lions during the past four weeks, but deposits declined, reflecting principally a decrease of 15 millions in govern ment deposits. Net demand deposits, at 776 millions, were about equal to the figure in the first report of the year, but time deposits have risen from 350 to 408 millions. Member bank loans to customers show a small further decrease recently, which was entirely in loans secured by stocks and bonds; open-market loans were practically unchanged in total, though there was some shift from loans to New York brokers to commercial paper. Investments rose from 545 to 549 millions, but still are below the peak figure of 575 millions held by the reporting banks on April 22; on Aug ust 19 these banks held 226 millions of United States securities, about onesixth of their total loans and invest ments. 85 reporting member banks in twenty cities (000,000’s omitted) Aug 19, 1931 Aug. 13, 1930 Changes 505 -* 67 Investments..................... 602 441 529 658 - 73 + 217 Total loans and investments........... $1,615 $1,692 +$ 77 Loans on securities. . . Other (largely commer- Net demand deposits . Time deposits................. S * 57,2 874 511 $ $ 883 589 + + 9 78 Outstanding acceptances of banks in this district declined over 2 millions in the month to $21,100,000 on Julv 31. This figure was a little higher ° than a year ago, although the national totals decreased from $1,350.000.000 to $1,228.000.000 in the year. Dealers’ sales of commercial paper rose from $2,805,000 in June to $7,480,000 in July, the highest figure s!nce March. Even so, the July figure was ^ess than a third of the record sales a year aS°Sales to — Total sales Commercial paper sales (Four dealers) City banks Country banks 1931—April... $2,820,000 $2,112,500 $4,932,500 JIa>’ ■ • • July... 2.872.500 1,730,000 5.877.500 455,000 1,075,000 1.602.500 3.327.500 2.805.000 7.480.000 1930—July... 18,686,000 6,334,400 25,020,400 1929—July. . . CURRENCY 120,000 2.914.500 3.034.500 DEMAND FEDERAL RESERVE BANK OF PHILADELPHIA MILLIONS DOLLARS + 30 - 30 1930 - 40 - 50 JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC Percentage change—July, 1931, from July, 1930 City areas* Allentown................ Altoona..................... Harrisburg.............. Johnstown............... Lancaster................. Philadelphia.......... Reading..................... Scranton................... Trenton..................... Wilkes-Barre.......... Williamsport.......... Wilmington............. York........................... Employ ment Wage payments Building permits (value) Debits -22.7 -11 .4 -28.5 -40.0 - 4.2 -14.3 -13.0 -23.8 -14.4 - 4.7 - 6.2 -13.0 -11.8 -36.5 -29.1 -40.7 -38.7 -14.3 -24.8 -19.9 -19.9 -30.5 -13.8 -19.4 -24.2 -22.5 - 62.3 - 39.5 - 41.6 - 90.5 - 78.7 +301.3 - 48.9 + 54.1 + 90.3 +190.8 - 80.6 +109.1 - 65.1 -17.9 -34.2 -15.8 -27.8 -20.5 -11.7 -17.2 -17.2 + 4.6 -10.8 -24.8 -20.7 -16.8 Retail trade sales -12.9 -13.2 - 7.6 -10.8 -11.0 - 8.7 + 8.0 - 4.5 - 8.4 - 6.4 -12.4 July, 1931, from June, 1931 Allentown................ Altoona..................... Harrisburg.............. Johnstown............... Lancaster................. Philadelphia........... Reading.................... Scranton................... Trenton..................... Wilkes-Barre.......... Williamsport.......... Wilmington............. - 4.5 0.0 - 1.3 + 0.9 + 0.8 - 2.8 - 0.0 - 6.6 - 4.8 + 1.1 - 2.1 - 0.0 - 1.3 -10.6 - 8.5 -15.2 + 0.5 - 0.8 - 7.3 - 7.8 - 6.2 - 9.4 - 2.1 - 2.8 - 9.9 - 2.0 - 16.0 + 78.0 +163.6 - 55.4 - 45.4 +455.7 + 34.9 +131.8 + 52.8 - 14.2 - 3.4 +334.5 + 19.6 - 6.5 - 7.7 - 5.4 - 4.8 - 9.8 - 6.5 + 5.6 - 1.0 - 8.5 - 6.7 - 9.5 -12.3 - 1 .4 * Area not restricted to the corporate limits of cities given here. -27.5 -11.4 -30.5 -17.6 -23.9 -38.2 -22.5 -25.5 -28.3 -27.3 -35.4 Employment July, 1931 Employment and wages in Pennsylvania Payrolls July, 1931 Per cent change since July, index* Per cent, change since _ July, index* July, 1930 June, 1931 72.5 -17.2 - 2.7 July, 1930 June, 1931 55.6 -31.5 - 8.3 All manufacturing industries (51)........................................ Metal products............................. Blast furnaces.......................... Steel works & rolling mills. Iron and steel forgings.... Structural iron work............ Steam & hot wtr. htg. app. Stoves and furnaces............. Foundries.................................... Machinery and parts........... Electrical apparatus............. Engines and pumps.............. Hardware and tools.............. Brass and bronze products. 66.4 -23.9 - 3.8 48.7 -40.1 - 6.9 40.7 58.7 69.7 99.4 87.5 64.9 63.5 76.7 92.5 47.3 67.8 63.1 -27.3 -25.0 -11.4 -19.8 -13.4 -13.8 -31.7 -20.1 -18.1 -45.3 -18.8 -29.7 - 9.4 - 5.9 — 5.4 + 15.0 - 3.0 - 3.7 - 7.7 - 3.4 - 0.2 - 1.7 - 3.8 - 2.0 30.4 42.1 48.6 82.7 63.4 36.4 38.3 54.4 75.8 33.6 51 .5 49.5 -43.7 -42.0 -29.8 -25.4 -31.2 -40.7 -51.4 -34.9 -36.4 -60.0 -28.4 -40.6 — 9 8 — 8 3 Transportation equipment... . Automobiles...................... Auto, bodies and parts Locomotives and cars. Railroad repair shops. . Shipbuilding...................... 46.7t -34.0 + 1.8 -33.0 -48.9 - 5.7 -50.6 - 3.5 - 5.2 - 5.4 +1.8 + 0.1 -15.6 30.9f -52.7 63.7 49.1 23.2 69.5 44.9 Textile products................ 80.9 Cotton goods.................. 63.2 Woolens and worsteds 60,3 Silk ^oods......................... 76.8 Textile dyeing & finishing. . 82.6 Carpets and rugs.......... 63.3 Hats..................................... 76.2 Hosiery.............................. 98.7 Knit goods, Other... . 86.8 Men’s clothing............... 80.3 Women’s clothing. . . . 80.4 Shirts & furnishings. . 137.3 - 5.7 + 4.6 + 7.9 -14.4 - 7.2 + 2.9 -14.0 - 5.1 - 0.9 0.0 +16.9 + 9.8 - 4.3 65.2 - 8.7 -13.6 - 2.8 + 4.1 - 4.7 - 0.2 - 3.1 - 0.7 - 5.8 - 1.9 - 4.7 -35.4 - 1.6 55.1 54.6 68.4 70.5 49.3 52.7 75.6 70.2 62.2 69.5 118.4 +16.2 + 5.2 -14.2 -14.1 +14.1 -27.7 - 7.4 -19.1 - 5.3 +10.1 + 8+ — 8 3 + 1.3 - 9.2 — 3 3 - 9.7 - 7.1 -24.4 — 9 3 —20 6 Foods and tobacco.................. 104.1 - 0.6 94.1 -10.0 -26 105.8 92.7 127.7 93.6 102.8 - 5.4 Bread & bakery products . Confectionery. Ice cream.................... Meat packing............ Cigars and tobacco. 5.1 1.9 2.1 1.5 6.8 + + 0.5 0.2 97.7 80.4 120.9 79.1 88.9 -12.4 - 3.5 - 3.0 -11.9 -11.4 - 3 9 -11.1 - 4.6 — 2.2 - 0.4 Stone, clay and glass products Brick, tile and pottery Cement.......................... Glass.............................. 55.4 -18.7 - 5.8 38.6 -29.8 -15.0 69.6 52.9 45.0 -15.1 -18.1 -25.1 +1.9 - 3.8 -18.0 40.1 40.0 36.2 -31.5 -32.5 -22.6 — 15 6 -22.2 Lumber products..................... 57.8 Lumber and planing mills. Furniture.................................... Wooden boxes.......................... -22.0 -28.8 + 3.4 -55.3 - 0.1 -13.7 + 4.0 + 0.6 +10.0 - 7.5 49.1 33.0 68.0 62.6 29.8 57.2 51.3 -.57.5 -11.0 -22.9 — 14! 1 Chemical products......... 91.0 Chemicals and drugs. Coke......................... Explosives........................ Paints and varnishes. Petroleum refining. . . - 3.6 -13.5 -32.3 - 0.7 - 5.5 +10.9 - 1.8 83.6 -15.2 62.0 67.7 80.8 91.9 132.6 - 4.6 8.8 3.0 0.1 2.5 0.2 59.2 43.0 83.3 79.9 130.4 -14.8 -49.7 -11.5 -16.2 - 1.3 - 2.7 + 8.8 +1.9 Leather and rubber products. 94.4 Leather tanning.............. Shoes.........................................*. Leather products, Other .. Rubber tires and goods. . . - 2.9 100.7 92.8 83.6 90.0 - 7.3 +1.3 + 4.0 +1.5 Paper and printing................. 89.8 Paper and wood pulp.......... Paper boxes and bags.......... Printing and publishing... 78.3 95.8 - 7.4 - 5.8 -10.4 - 6.6 - 63.4 -29 8 Anthracite.................................. 77.0 1.7 3.1 5.7 29.8 31.0 16.0 60.2 51.1 -24.9 -47.7 -61.0 -15.4 -64.6 88.4 - 8.1 93.0 72.6 91.8 110.9 -14.4 - 9.5 +14.0 +16.1 2.5 84.5 3.1 2.7 2.2 66.0 71.2 92.8 -15.1 -11.5 -14.6 45.6 +27.8 + 0.4 + 0.8 + 11 9 + 29 — 9 0 — 8 1 — fi 4 - 1.4 - 8.3 -11 0 — 0 6 — 6.2 -29.8 - 2.6 + 4.7 + 02 +26 3 - 2.2 + 2.0 -24.8 -14.1 - 6.1 — 7.2 — 11.7 - 5.3 -37.2 -19.3 Bituminous coal......................... Construction and contracting 78.7 -32.2 + 9.3 59.1 -43.6 + 7.7 Street railways.......................... 78.2 - 7.3 + 0.9 76.4 -11.6 - 5.1 Retail trade................................. 85.2 - 2.9 - 5.3 Wholesale trade........................ 89 9 - 1.3 - 0.1 * 1923 1925 average, f Preliminary figures. Page Seven Synopsis of Industrial and Trade Conditions in the Philadelphia Federal Reserve District Demand Stocks Operations Manufacturing Iron and steel Blast furnaces ................................. Declined Slow Steel works and rolling mills. ................................................... Slow Little change Foundries and machine shops ............................................... Slow Production of iron and steel castings declined Electrical apparatus Slow Declined Locomotives and cars............... Poor Declined Shipbuilding Little change Declined Silk manufactures ..................... Quiet, little change Little change Wool dealers Fair, little change ............... Transportation equipment .................................... Textiles Wool ................................. manufactures Cotton manufactures Hosiery ............... ............ ................................................ Floor coverings ........................... Declined, smaller than a year ago Increased; unfilled yarns increased Quiet, prices lower Little change Declined Quiet, Declined Smaller than a year ago little change Quiet, some gain Declined, but creased unfilled orders for Declined, smaller than a year ago Fair, some gain orders in- Little change, smaller than a year ago Leather products Quiet, some gain; prices lower Increased Declined Little change; prices higher Little change Declined Fair, little change Some increase Little change ...................................................... Quiet, little change Little change Smaller than a year ago Cement ................................................... Quiet, some decline Declined Some Shoes ...................................................... Leather—sole ................................. kid.................. ................. Building materials Brick decline but larger than a year ago Slow Declined Little change Paints and varnishes............... Slow, declined Declined Smaller than a year ago Pottery Quiet Little change Declined Quiet, some decline Little change Little change Quiet, Lumber—mills Slate .............................. ................................................ ....................................... ..... . . . Miscellaneous Paper ........................... ...................... Tobacco—cigars leaf Furniture ........................ ................................. ............................................. Rubber tires and goods.... Declined Declined Quiet Declined Light, declined Slow Increased Smaller than a year ago Quiet, little change Little change Smaller than a year ago Fair, some gain; prices lower Little change Light, smaller than a year ago some gain Permits and awards increased in Increased, especially construction July Building in building Coal mining Quiet, little change Declined ....................................... Slow, little change Some gain ...................................................... Declined seasonally Smaller than a year ago Quiet, some decline Declined Anthracite Bituminous .......................................... Trade Retail Wholesale and jobbing. . . . Page Eight
@FedFRASER