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THE BUSIN ESS REVIEW THIRD FEDERAL PHILADELPHIA By ISBj| pi RESERVE DISTRICT SEPTEMBER RICHARD L. AUSTIN, C lairman and Federal Reserve FEDERAL RESERVE BANK of PHILADELPHIA i935 z, Agent Business and Banking Conditions in the United States Factory employment and output were maintained in July at the June level, though usually there is a con siderable decline at this season. Ac tivity at mines showed a substantial decrease, reflecting a sharp reduction in output of coal. Production and employment. The Federal Reserve Board’s seasonally adjusted index of manufactures showed an increase in July, while the in dex of mineral production showed a marked decline, with the consequence that the index of industrial produc tion remained unchanged at 86 per cent of the 1923-25 average. For the first seven months of the year indus trial output was 6 per cent larger than a year ago. Activity at steel mills, which had declined during June, advanced considerably during July and the first three weeks of August and there was also a substantial in crease in the output of lumber. Au tomobile production showed a de crease from the high level prevailing earlier in the year, reflecting in part seasonal developments. Output of textiles increased somewhat in July, owing chiefly to increased activity at silk mills. In the woolen industry the recent high rate of activity continued, while at cotton mills daily average output declined by about the usual seasonal amount. Meat packing re mained at an unusually low level. At mines, output of bituminous coal de creased sharply in July, following an advance in the preceding month, and there was also a sharp reduction in output of anthracite. Factory employment, which usually declines at this season, showed little change from the middle of June to the middle of July. Employment in creased somewhat in the machinery, lumber, furniture and silk industries and there was a large seasonal in crease in the canning industry. De creases of a seasonal character were reported for establishments producing cotton goods and women’s clothing, while in the automobile industry em ployment declined by more than the usual seasonal amount. At coal mines employment showed a marked de crease in July. The total value of construction con tracts awarded, as reported by the F. W. Dodge Corporation increased fur ther in July and the first half of August, reflecting an increase in non- INDUSTRIAL PRODUCTION FACTORY EMPLOYMENT PER CENT PER CENT 140 residential projects. Residential build ing continued in considerably larger volume than a year ago, with increases from last year reported for most sec tions of the country. Department of Agriculture esti mates as of August 1 indicate a cot ton crop of 11,800,000 bales, about 2,200,000 bales larger than the un usually small crop last year. The in dicated wheat crop, while larger than a year ago, is considerably smaller than the five-year average for 1928 32. Crops of corn and other feed stuffs are substantially larger than last season. CONSTRUCTION CONTRACTS AWARDED MILLIONS OF DOLLARS MILLIONS OF DOLLARS 600 Total -'N, iAN v; All 0th _ Reside tial ' % 1929 1930 1931 1932 1933 1934 1935 Three-month moving averages of F. W. Dodge data for 37 Eastern States, adjusted for sea sonal variation. Latest figure based on data for May and June and estimate for July. MEMBER BANK CREDIT 130 120 c/V 120 LAV V 90 \ • \ AV 70 L 100 A AV A V \f v V €0 50 50 1929 1930 1931 1932 1933 1934 1935 Index of industrial production, adjusted for seasonal variation. (1923-1925 average =100) Index of factory employment, adjusted for seasonal variation. (1923-1925 average =100) Wednesday figures for reporting member banks in 91 leading cities. Latest figures are for August 14. Page One Daily average volume of freight-car loadings declined in July, reflecting a marked decrease in shipments of coal. Department store sales showed a seasonal decline and the Board’s adjusted index remained unchanged at 80 per cent of the 1923 25 average. Prices. The general level of whole sale commodity prices showed little change during July and advanced slightly in the first three weeks of August. For the seven-week period as a whole there were substantial in creases in the prices of hogs, lard, silk, and scrap steel, while cotton de Distribution. clined. Wheat, after advancing con siderably during the latter part of July, declined somewhat in the early part of August. Bank credit. Excess reserves of member banks increased by $340,000, 000 in the five-week period ended Au gust 21 as a consequence principally of a reduction in the balances held by the Treasury with Federal Reserve Banks. There were also moderate im ports of gold from abroad. Total loans and investments of re porting member banks in leading cities showed a net decline of $290,000,000 during the four weeks ended August 14. Holdings of direct obligations of the United States Government de creased by $220,000,000 following a substantial increase in the middle of July. Loans declined by $180,000,000 in the latter part of July but subse quently advanced by $40,000,000, while holdings of Government guar anteed and other securities increased by $70,000,000 in the four-week per iod. Yields on Government securities rose slightly during this period, while other short-term open-market money rates remained at low levels. Business and Banking Conditions in the Philadelphia Federal Reserve District Business conditions in the Philadel phia Federal Reserve District on the whole have shown signs of seasonal im provement since the latter part of July, although current activity varies mate rially in the different lines of produc tion and distribution. Output of manufactures and crude oil in July was at a somewhat greater rate than usual, while that of anthra cite and bituminous coal registered ex ceptional declines. The increase of 4 per cent in the total volume of indus trial production during the first seven months this year over last has been due entirely to larger output of manufac tures and crude oil. Building and con struction has continued seasonally ac tive, though the general level is still low in comparison with that prevailing in earlier years. The value of building contracts awarded and permits issued over the past three months has shown an upward tendency, particularly in the case'of residential houses. The value of retail and wholesale trade sales in July showed greater de cline from June than usual but for the year to date has continued somewhat larger than last year. Decreases in sales of new passenger automobiles during the month were not as large as is to be commonly expected and the number of units sold has been considerably larger so far this year than last. Freight car loadings of merchandise and miscel laneous commodities have been well maintained in the month while ship ments of coal declined sharply. General employment and earnings of workers in the principal branches of trade and industry decreased from the middle of June to the middle of July, reflecting mainly marked reductions in coal fields and retail trade. Both em ployment and payrolls were somewhat smaller than a year ago but in compari son with the average for 1932 the number of workers was 5 per cent larger and earnings 14 per cent greater. In early August, seasonal in creases in both were evident, as shown by preliminary reports from the manu facturing industries. Manufacturing. Demand for manu factured products has increased sea sonally since the middle of last month and current sales have been larger than last year. A number of impor tant lines, such as textiles, leather products, and some of the building materials and supplies, report gains in orders for immediate or nearby manu facture ; the volume of unfilled orders in the aggregate appears to be larger than a year ago in most lines. Prices of manufactured goods have continued fairly steady since early June, although lately advances have been apparent in several cases. The price index of the Bureau of Labor Statistics, which includes fuel and lighting materials, on August 17 was 78 per cent of the 1926 average or the same as in June and July; a year ago it was 78.4 and two years ago 74.2. Stocks of raw materials at report- FREIGHT CAR LOADINGS MANUFACTURING ACTIVITY ALLEGHENY DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT MERCHANDISE AND MISCELLANEOUS PRODUCTION EMPLOYMENT PAYROLLS TOTAL 1930 1931 Two DigitizedPage for FRASER 1932 1933 1934 1935 1930 1931 1932 1933 1934 1935 mg' plants show little change in the month and continue to be somewhat smaller than a year ago. In the case of finished products inventories gen erally are said to be below last year’s level, although there is evidence that since April increases have occurred in several important lines. Factory employment, wage pay ments and working time declined from the middle of June to the middle of July but these recessions seem to have been smaller than usual. In the case of certain textiles, such as woolen, silk, and cotton manufactures as well as men’s clothing, there occurred marked increases instead of the customary de clines. Average wage earnings at Pennsyl vania factories in July were estimated at $18.54 a week as compared with $19.25 in June and $18.04 in July 1934. Hourly earnings indicate a fur ther drop in the month and a decline of 2 per cent from a year ago. The number of hours actually worked by a wage earner averaged 32.4 as against 33.2 a month ago and 31.2 in July 1934. Output of manufactures has con tinued at a somewhat higher level than usual. This bank’s preliminary index of productive activity, which is adjusted for working days and sea sonal variation, rose from 68 in June to 70 in July, relative to the 1923-25 average, following declines in the pre vious two months. The high level of 74 was reached in April this year. The rate of factory production has continued 5 per cent higher in the first seven months this year than last. The rate of activity in the indus tries producing consumers’ goods such as textile products, shoes, and food products was relatively higher than in the case of durable goods, al though these too showed increases over the previous month and as com pared with a year ago. Operations of steel works and rolling mills as well as foundries showed higher than customary level of activity, while in the case of electrical apparatus ac tivity failed to maintain its usual rate of production during July. Such slight improvement as occurred in the automotive branch has been offset by decreased activity in shipbuilding, and locomotives and cars. Groups com prising tobacco and chemical prod ucts, paper and printing, and building materials reported recessions of some what greater proportions than usual. Output of electric power was 3 per cent larger in July than in June, in Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 Adjusted indexes allow for the usual seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not be typical. All figures are rounded from original data. Adjusted for seasonal variation Not adjusted Per cent change July May June July 1934 1935 1935 1935 July from Month Year ago ago Industrial production (r).............. 69 66 Manufacturing—total ...................... Durable goods............................... 52 Consumers’ goods.......................... 77 Metal products............................... 54 Textile products ........................... 66 Transportation equipment ........ 49 Food products ............................... 79 Tobacco and products.................. 78 Building materials ....................... 27 Chemicals and products (c)......... 104 Leather and products ................. 126 Paper and printing ...................... 78 63 Coal mining......................................... Anthracite ...................................... 63 Bituminous .................................... 61 Crude oil............................................... 361 Electric power Output.............................................. 196 Sales, totalt..................................... Sales to industriest........................ 133 Employment and wages—Pa. Factory—Wage earners.................... Payrolls............................................ Man-hours (1927-28 = 100)......... General—-12 occupations: Employment (1932=100)........... Payrolls (1932=100)........... Building and real estate Contracts awardedf—total............. Residential t.................................... Non-residentialf............................. Public works and utilities'!.......... Permits for building—17 cities.... Mortgages recorded—Philadelphia. Real estate deeds—-Philadelphia.. . Sheriff deeds (1930 = 100).... Other deeds (1930 = 100)___ Writs for Sheriff sales—-Phila. . . 786 Distribution Retail trade—sales...................... 62 stocks.................... 63 Wholesale trade—sales............... 81 stocks............ 66 Life insurance sales...................... 106 New passenger auto, registrations . 89 Hotels—Occupancy........................ Income, total................... Freight car loadings—total........... Merchandise and miscellaneous Coal................................................. Business liquidations Number.............................................. Amount of liabilities........................ Payment of accounts Check payments............................... 71 Rate of collections (actual) Retail trade................................... Wholesale trade............................ Prices—United States Wholesale (1926= 100)............... Farm products.............................. Foods.............................................. Other commodities...................... Retail food (1913 = 100)............. Philadelphia.................................. Scranton......................................... 75 72 74 68 386 372 72p 70p 52p 84p 62p 82p 34 72p 88 25 102p 135p 80 62 G3p 54 375 200 198 209 i34 i46 144 57 52 85 81 65 60 83 78 44 34 70 69 94 89 27 27 105 106 129 116 82 83 70 71 62 95 97 79 23 19 30 19 8 7 39 928 765 66 62 83 70 88 85 71 61 81 70 98 92 667 67p 61p 78p 67p 99 100 53 57 49 75 80 1935 July May June July from 1934 1935 1935 1935 7 mos. 1934 72 68 69p 67p 52 6b 61 62 80 76 48 46 35 75 68 66 96 84 91 29 28 30 103 107 107 114 117 114 75 83 82 52 69 83 52 71 85 54 56 69 372 401 387 60p 75p 33 67p 94 28 lOOp 122p 78 51 51p 48 386 65 63 74 71 — 2 + 3 + 1 + 3 + 3 + 5 + 0 + 3 - 2 - 7 - 4 +16 - 3 -35 -35 -31 +1 + 6 + 6 + 1 + 9 +14 +23 -30 - 9 +13 - 6 - 2 + 7 + 3 - 1 - 0 -11 + 4 + 4 + s + 5 + 6 +11 +16 - 4 - 8 - 0 - 7 — 1 - 0 +1 -11 -11 + 1 +13 + 6 + 0* — 2 + 7 + 3* + 8 + 2 182 186 188 + 1* 135 137 148 + 6 146 — 0* — 4* — 3* + 1* + 3* + 4* + 2* + 7* + 3* 75 60 60 75 57 58 — 3* — 1* - 1* 107 107 108 -10* - 1* + 3* 115 124 127 105 114 -30 26 20 20 14 17 16 +16 24 27 26 - 5 65 15 21 -67 9 8 7 +14 5 5 -23 6 41 44 44 + 6 — 2* 102 109 109 +13* 61 66 64 - 0 747 974 765 24 20 29 20 10 7 38 76 64 634 74 55 56 75 62 62 +27 +45 +36 + 5 +10 +35 — 5 -30* - 0* -13 - 9 +47 +20 -69 +32 +23 - 7 -26* + 6* — 15 - 6 — 0 — 4 — 4 + 2 + 9 -17* — 24* -15 +1 -45 45 67 70 + 8 + 0 57 62 58 — 3 75 78 77 + 5 - 3 65 69 68 + i + 2 102 94 102 - 6 101 123 128 +12 +31 + 8* +22* 82 113 106 + 9* + 9* 71 115 102 58 58 62 - 6 - 2 58 59 58 — 2 -20 - 1 54 62 77 195 49p 5op 73p 66 95 113 88p 77p 55 58 43 61 45 -32* — 8* +18* — 3* -27* — 42* 67 61 60 41 90 46 69 74 83 75 28 70 31 74 30 70 30 68 - 1* + 6* + 8* 75 80 80 — 2* +20* +29* 64 81 78 _ !* +16* +22* 71 84 83 0* - 1* - 1* 78 78 78 _ 1* + 11* +13* 110 124 123 - 0* + 7* + 8* 117 127 126 — 2* + 8* + 8* 114 125 125 79 77 82 78 122 125 123 77 - 3 + 8 30 67 + 3 + 0 + 5 - 1 + 7 % change from (000,000’s omitted in dollar figures) Banking and credit Federal Reserve Bank Bills discounted.............................. Other bills and securities.............. Member bank reserves.................. Reserve ratio (per cent)............... Reporting member banks Loans to customers........................ Other loans and investments.. . . Net deposits..................................... Bankers’ acceptances outstanding. July 1934 April 1935 May 1935 June 1935 July 1935 * 6 168 218 68.3 $ 1 171 221 68.8 * i 171 221 68.5 $ i 178 227 67.4 $454 593 1067 13.9 *413 665 1124 12.5 *416 664 1130 12.5 *417 670 1139 12.9 * Computed from data unadjusted for seasonal variation. t 3-month moving daily average centered at 3rd month. r—Industrial production index revised; see table on page 4. Month ago Year ago * i 181 226 66.6 0 +2 -0 -1 -83 + S + 4 — 2 $417 674 1138 12.2 0 +1 -0 —5 - 8 +14 + 7 -12 p—Preliminary. c—Revised, f Not included in production index, Page Three OUTPUT OF METAL AND TEXTILE PRODUCTS OUTPUT OF HOSIERY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT FULL FASHIONED METALS 1930 SEAMLESS 1931 1932 1933 1934 1935 1931 REVISED INDEX NUMBER OF INDUSTRIAL PRODUCTION Philadelphia Federal Reserve District Adjusted for seasonal variation (1923-25 = 100) 1929 1930 1931 1932 1933 1934 Jan............... Feb............... March......... April............ May............. June............. July............. Aug.............. Sept.............. Oct............... Nov.............. Dec............... 105.1 107.5 106.8 110.7 112.8 112.3 113.4 113.7 114.6 111.6 108.7 108.3 106.3 104.7 103.3 103.0 101.8 97.1 95.6 93.4 95.4 94.6 90.3 84.5 81.6 83.1 83.1 86.8 82.2 77.5 76.7 76.4 76.2 75.8 72.1 71.7 71.3 68.9 66.7 64.4 57.7 56.4 57.8 58.8 65.5 64.5 62.1 61.0 Average.... 110.5 58.4 59.1 56.1 59.5 64.2 71.9 76.5 73.5 71.7 68.8 68.3 67.2 66.1 70.7 74.3 72.8 73.2 72.6 68.7 68.3 65.2 67.0 68.8 73.8 97.6 78.5 62.9 66.0 70.1 Not adjusted for seasonal variation 1935 1929 1930 1931 72.5 73.4 73.8 76.4 75.1 73.8 72.5p 103.5 109.0 106.5 109.1 111.3 111.1 108.9 114.6 117.1 118.1 110.7 105.5 104.9 106.1 102.8 101.6 100.8 96.2 91.7 94.3 97.7 100.8 92.3 82.4 80.9 84.2 82.4 85.2 81.2 76.8 73.5 ,76.5 78.0 80.2 73.6 69.9 110.5 1932 1933 1934 1935 70.6 69.8 66.2 63.5 56.8 55.9 55.4 58.5 67.0 68.1 63.4 59.4 58.4 60.5 55.6 57.8 62.9 70.7 72.9 73.2 73.2 72.4 69.8 65.2 65.9 72.1 73.5 71.8 72.1 71.4 65.5 68.3 66.7 71.1 70.5 71.4 72.5 75.0 73.8 74.8 73.8 72.5 68.8p 97.6 78.5 62.9 66.0 70.1 Note: The revision consists of an inclusion of the new index number showing production of crude oil in Bradford field. The revised index of industrial production combines proportionately the following industries: manufacturing—90%, and mining—10%. This index for earlier years will be furnished upon request. July index is preliminary. dicating a marked improvement when compared with the estimated rate of seasonal activity; it was 7 per cent larger than a year ago and 2 per cent greater in the first seven months this year than last. Sales for all purposes also showed a slight increase during the month and were 3 per cent larger than a year ago. Industrial consump tion during July fell off a little more than was expected but continued larger than a year ago; the amount of electric power used by industries in the first seven months this year was 6 per cent larger than in the same period last year. Coal and other fuels. Production of anthracite in July declined 35 per cent more than usual and shipments fell off correspondingly as compared with June. Figures for August indicate a further reduction in output. Stocks of anthracite have been increased substan tially during the month; on July 1 stocks held by producers, retail dealers, electric power plants and railroads were 13 per cent larger than a year ago. Production and shipments of bitumi nous coal declined sharply in July, fol Page Four lowing large increases in the previous two months owing to labor unsettle ment. Industries and railroads on July 1 held considerably more coal fuel than a month earlier, reflecting in creased buying largely for storage. But takings during July declined con siderably. In the period from August 1934 to July this year, output of an thracite was 10 per cent smaller than in the same season last year, whereas production of bituminous coal was about 2 per cent larger. (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. Coke Prod.. (1923-25 = 100) Prices. . .(1926=100) Gas and fuel oil Prod. (1923-25=100) Prices. . .(1926=100) July 1935 Per cent change from Month Year ago ago 136,500 -40 126,333 —42 970t +38 77.0 + 4 84,899 — 13 — 1 — 2 -37 - 2 — 7 -31 -32 + 0 -15 -11 — 17 - 1 -10 67* -16 88.6 - 0 — 5 + 4 99.9* - 3 64.4f 0 - 3 0 228,000 15,735 96.5 114,136 Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated, t June. 1932 1933 1934 1935 1936 Output of by-product coke fell off 14 per cent more in July than the customary slight drop and for the year to date was 3 per cent less than last year. Production of gas and fuel oils declined further and for the period from January to July was 6 per cent below a year ago. Awards of building contracts in July totaled $7,161,000, a gain of 20 per cent over June and an increase of 22 per cent over a year ago. This rise was con trary to seasonal tendency and re flected a sharp increase in contracts let for family dwellings, which in July amounted to nearly $3,100,000 and were the largest for that month since 1929. Compared with the period fiom 1928-31, however, when the July volume of all contract awards aver aged $31,430,000, this year’s total con tinued relatively small. The most pronounced decreases from the June level occurred in con tracts let for educational buildings and public works and utilities which de clined 64 and 47 per cent respectively. In the case of the latter, which in cluded projects involving public fi nancing, the volume of July awards amounted to only $641,000, or about 9 per cent of that month’s contract total, while a year ago the dollar volume of this class of construction was in ex cess of $2,000,000 and represented nearly 35 per cent of all contracts. Building operations on contracts awarded earlier this year continued to expand during July, as indicated by additional increases in the number of workers employed and in their earn ings. Street and highway construc tion on the other hand fell off sharply, as did certain miscellaneous types of contracting operations. Building and real estate. VALUE OF BUILDING CONTRACTS FOOD PRODUCTS PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT NON-RESIDENTIAL OUTPUT— \ /-t 1931 1932 1933 WHOLESALE FOOD PRICES 1934 The local real estate market has shown a little more activity of late, as evidenced by an improvement in the renting demand for houses and apartments and some increase in the sale of properties. Rents also have shown a slight upward tendency in re cent months. Ordinary conveyances in several of the larger city areas, includ ing Philadelphia, were more numerous in the first seven months this year than last. Real estate foreclosures in this section have declined further, although they continue more numerous than in earlier years. Agriculture. Seasonal farming opera tions are progressing at the usual rate and fall plowing for winter grains is in evidence. Distribution of rainfall has been very uneven. Some sections need more rain while in others local storms have interrupted harvesting op erations and caused damage to grain in the shocks. Estimated yields of important field crops in this district have been revised upward since early July. Department of Agriculture estimates as of August 1 indicate that the harvest of corn, wheat, oats, hay and tobacco will be substantially larger this year than last, while that of white potatoes will be smaller. The condition of orchard fruits also shows a decided improve ment over a year ago, and in the case of apples yields are expected to be somewhat above the five-year average. Sales of farm products have been considerably larger thus far this year than last, reflecting largely higher prices. In Pennsylvania, for example, it has been estimated by the Bureau of Agricultural Economics that cash in come from farm production, and rental and benefit payments amounted to $102,230,000 in the first half of this PHILADELPHIA 1935 1936 1930 year as compared with $87,537,000 a year ago. Wholesale prices of farm products showed some decline in July but rose in early August. Distribution, trade and service. Total freight car loadings declined more than usual in July, owing principally to a sharp drop in coal shipments. Deliveries of merchandise and mis cellaneous goods maintained more than their customary seasonal volume, while those of coke and forest products de clined. Rail freight chiefly of manu factures, originating in the Philadel phia industrial area, has fluctuated nar rowly at somewhat higher levels than last year. Business at wholesale, as measured by the total dollar sales of eight im portant lines, declined 4 per cent from June to July, after allowance is made for the usual seasonal change. Im provement in the sales of dry goods and groceries was more than offset by decreased activity in the remaining six lines. As compared with a year ago, aggregate sales in July were 3 per cent smaller but in the first seven months this year they were 5 per cent larger than in the same period last year, reflecting partly higher prices. Retail trade sales of department, apparel, shoe and credit stores com bined declined 6 per cent from June to July, after making allowance for the number of trading days and the usual seasonal change. Our seasonally adjusted index was 67 in July, relative to the 1923-25 average, in comparison with 71 in June and 62 a year ago. Sales in the first seven months this year showed virtually no change as com pared with a year earlier. Demand for general merchandise in August has been dull but relative to recent years appears to have been well maintained. 193 1 1932 1933 1934 1935 Inventories at wholesale establish ments declined 4 per cent more than usual from June to July, while at retail a seasonal decrease of 6 per cent was indicated. As compared with last year stocks at wholesale were 1 per cent larger in July, but at retail stores they were 3 per cent smaller. Rate of stock turnover in wholesale lines showed vir tually no change from a year ago, but at retail it was 5 per cent more rapid in the first seven months this year than last. Collections during July increased 3 per cent more than usual at retail and showed about the customary rate of decrease at wholesale. As com pared with a year ago, the ratio of collections to balances outstanding was 5 per cent higher at retail but 1 per cent lower at wholesale. Sales of new passenger automobiles, as measured by registrations in this district, showed an unusually small decline in July. At 100.2 per cent of the 1923-25 average, our seasonally adjusted index of registrations in July was the highest since May 1930, and compared with 91.8 the month before and 89.4 a year ago. The number of units sold in the first seven months this year was 31 per cent larger than in 1934 and exceeded that of any like period in the past four years. Hotel business Philadelphia Federal Reserve District July, per cent change from Month Year ago ago 1935 from 7 mos. 1934 Room occupancy.................... Per cent of capacity used: July 1935.................... 38.7 June 1935................... 49.3 July 1934.................... 36.6 Income from: Guest rooms........................ Food....................................... Other sources...................... + o -17 — 0 + 8 +22 -22 -32 -18 + 7 + 8 + 16 + 8 + 8 +11 Total income................... -24 + 9 + 9 Page Five Activity of commercial hotels, ex clusive of hotels at summer resorts, has continued seasonally downward since April. Room occupancy in July showed an additional drop of 17 per cent and income from all sources a decline of 24 per cent as compared with June, but both were larger than a year ago. Banking conditions. Reserve bal ances of member banks rose from 238 to 251 millions in the five weeks end ing August 21; with one exception this was the highest point ever at tained here. Interdistrict payments on commercial account were nearly in balance, but funds were supplied to the banks by a decline in currency demand and principally through a 16 million excess of Treasury disburse ments over local receipts which re flected partly relief payments. A portion of the relief funds on August 21 still was in the form of outstand ing officers’ checks of this bank, help ing to account for the rise in “Non member deposits” here. Reserve bank credit extended lo cally shows a slight rise, owing in part to industrial advances made by the bank to supply established busi nesses with working capital; actual advances to date aggregate over 5 millions, but repayments have reduced the amount actually outstanding to less than 4 millions on August 21. Loans and commitments approved by the bank to provide such funds now total about 16 millions, as against 15j4 mil lions five weeks ago. Despite large disbursements by the Treasury, its deposit here decreased only about 2 millions. The Treasury did not make general withdrawals of funds from depositary banks, but sup ported its account by transfers from other districts and by direct deposits to the bank’s credit in the gold settle ment fund. These transfers and de posits largely explain an increase of 21 millions in the bank’s cash reserves. Its reserve ratio, owing to increased liabilities, advanced only from 67.1 to 68.5 per cent. In the first three weeks of the pe riod demand deposits declined substan tially at the reporting member banks, while outstanding credit changed lit tle in total. There was a decrease in amounts due from banks, but the prin cipal effect of the drop in deposits was upon reserve balances, which fell 21 millions. This was little more than the reduction in reserves of all mem ber banks at this bank, which was caused chiefly by commercial pay Page Six ments to other districts of sufficient size to much more than offset a return flow of currency and net Treasury disbursements. From August 7 to August 21, how ever, deposits increased at the report ing banks and their investment hold ings decreased 16 millions; payments received for securities and new de Reporting member (000,000's omitted) Loans on securities: To brokers and dealers in N. Y. City............. $ To brokers and dealers elsewhere...................... To others.......................... Total loans on securities.. * Acceptances and commer cial paper......................... Loans on real estate.......... Other loans.......................... Total loans.................. $ U. S. Government obliga tions ................................... Obligations fully guaran teed by U. S. Gov’t. ... Other securities.................. Changes in Aug. 21, 1935 Five weeks 13 0 —*10 12 154 0 0 - 4 - 30 0 — $44 179 22 70 178 - One year 3 ,+ 0 3 / 6 5 449 - $6 — $43 270 — 22 - 23 83 276 + + Total loans and in vestments ................ SI.078 Net demand deposits........ 833 Time deposits...................... 281 United States deposits.... 35 146 Due to banks...................... 265 Reserve with Federal Re 172 serve Bank...................... S }+ 82 1 —$19 - 8 0 + i — 2 + 6 +$16 +165 - 36 - 33 + 18 + 45 + 12 + 46 posits were mainly responsible for a rise of 33 millions in their balances at the reserve bank. This change in reserves again was practically the same as that for all member banks in the district. In this fortnight the flow of interdistrict commercial payments was highly favorable to the district and Treasury operations further aug mented the supply of funds available to the banks. Over the five-week period as a whole, loans to customers on securi ties did not change at the reporting member banks, but there was a de crease of 3 millions in other loans to customers, following a prolonged rise aggregating 16 millions from April 24. The banks’ holdings of openmarket paper also decreased 3 mil lions and their holdings of United States Government securities fell off 22 millions. These declines were only partly offset by the acquisition of 8 millions of obligations fully guar anteed by the Government and one million of miscellaneous securities, so that total outstanding credit decreased from 1,097 to 1,078 millions. Reserve deposits of all member banks in the district averaged 226 millions for the whole month of July, which was substantially less than the total on August 21. The July excess above legal requirements was 88 mil lions; this was a decrease of 3 mil lions from June and the lowest monthly average so far this year. Outstanding acceptances of banks in this district amounted to $12,230, 000 on July 31, the smallest since 1933 and 12 per cent under a year ago. The national total shows a decrease of 195 millions or 38 per cent in the year; bills covering im ports and domestic shipments are in greater amount than a year ago, but all other classes declined, the largest drop both relatively and actually being in those covering domestic warehouse credits. Federal Reserve Aug. 21, Bank of Philadelphia 1935 (in millions of dollars) One year 0.5 0.5 3.9 +$0.2 0 + 0.2 — $4.5 — 0.1 + 3.8 177.1 0 0 0 +10.0 - 0.4 $182.0 +$0.4 +$8.8 242.9 + 4.1 - 3.3 250.9 +13.3 +53.6 Bills discounted......... $ Bills bought................ Industrial advances. . United States securiOther securities.......... Total bills and se cures ................. Fed. res. note circula tion............................ Member bank reserve deposits.................... U. S. Treasurer— genera] account---Foreign bank deposits Other deposits............ Total reserves............. Reserve ratio.............. Changes in Five weeks - 1.8 2.1 — 0.2 2.4 + 5.5 7.2 +20.9 346.0 68.5% + 1.4% + 1.0 + 1.7 — 0.6 +46.3 + 2.3% MEMBER BANK RESERVES AND RELATED FACTORS Changes in weeks endingPhiladelphia Federal Reserve District (In millions of dollars) July 31 Aug. 7 Reserve bank credit extended in district.................... + 0.1 -0.8 Commercial transfers (chiefly interdistrict)............... -17.2 -8.5 Treasury operations........................................................... + 2.6 -0.3 +0.4 +0.7 +3.9 July 24 Total.............................................................................. -14.5 -9.6 Uses of funds - 3.5 -0.1 Member bank reserve deposits....................................... -11.2 -9.4 Nonmember deposits at reserve bank.......................... + 0.1 +0.0 Unexpended capital funds of reserve bank................. + 0.1 -0.1 Total.............................................................................. -14.5 -9.6 Aug. 14 Aug. 21 + 1.6 - 1.0 +11.7 + 13.8 + 0.9 + 9.2 Changes in five weeks + 0.3 + 0.5 +10.3 +22.0 +17.1 +0.2 + 2.1 — 0.6 +1.0 +15.2 +17.7 +3.6 — 3.1 + 4 .S +0.2 + 0.0 + 0.1 — 1.9 +13.3 + 5.4 + 0.3 +22.0 +17.1 +5.0 +14.2 +5.0 +14.2 Note: This table gives, in balance sheet form, a summary of the banking changes which have had an influence on member bank reserve deposits. MILLIONS $ Employment and Payrolls in Pennsylvania FEDERAL RESERVE BANK OF PHILADELPHIA 240 (All figures are rounded from original data) ■ Manufacturing Indexes MEMBER BANKS’ RESERVE DEPOSITS Employment* (Indexes are percentages of the 1923-25 average taken as 100. Total and group indexes are weighted proportionately.) BILLS DISCOUNTED DEPOSITS REPORTING MEMBER BANKS MILLIONS (total or PHILA FED. RES DISTRICT Employehoursf Payrolls* Per cent Per cent July change from July change from 1935 1935 index July June index July June 1934 1935 1934 1935 All manufacturing......... Iron, steel and products.. Non-ferrous metal prods. Transportation equip.. . 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. . 75 63 101 50 95 93 104 103 74 61 83 96 90 83 +1 0 - 1 _ — 1 + 4 + 0 -10 4 + 4 + 1 + 8 + 3 - 6 3 0 + 0 + 9 3 + 7 + 7 — 5 4 + 7 + 4 + 1 0 - 0 — 1 57 51 92 33 71 69 79 90 54 45 71 75 76 75 66 74 49 +11 — 1 — 13 — 2 + 3 + 2 56 +17 + 6 52 — 1 — 9 38 0 + 2 + 3 + 7 +13 -22 + 3 + 4 - 1 + 2 +21 +17 - 2 - 3 + 4 + 3 July 1935 per cent change from July June 1934 1935 + 4 + 8 +16 — 32 +12 +15 — 0 + 2 +12 +23 + 1 +14 + 3 + 3 — 4 — 4 — 2 — 14 - 3 - 1 - 9 - 1 - 8 + 5 — 4 — 1 - 7 - 7 — 3 — 3 + 1 — 13 — 1 - 0 — 3 + o — 8 + 3 — 7 +17 — 6 - 5 + 4 +12 + 3 — 8 + 3 + 5 GOVERNMENT DEPOSITS) NET DEMAND, * Figures from 2294 plants. f Figures from 2072 plants. 1200 General Index Numbers Covering twelve branches of trade and industry 1933 1934 1935 Percentage change—July 1935 from July 1934 City areas* Manufacturing Employ ment Wage payments Building permits (value) Allentown...., Altoona........... . Harrisburg. . . , Johnstown____ Lancaster. . . ., Philadelphia.. , Reading.......... . Scranton.......... Trenton........... Wilkes-Barre. . Williamsport.. Wilmington... York................ — 4 — 10 + 2 — 8 + 8 + 7 + 9 + 1 — 8 + 3 +10 — 9 +10 + 1 -36 + 7 +15 + 6 + 8 - 5 + 9 + 7 +14 +22 - 9 +15 — 64 +243 +289 — 36 — 48 + 45 — 49 — 23 +280 +134 +114 + 59 +136 Allentown.... Altoona........... Harrisburg. . . Johnstown.... Lancaster.... Philadelphia. . Reading.......... Scranton......... Trenton........... Wilkes-Barre. . Williamsport.. Wilmington... York................ + + + — — + — + + — — +1 - 9 + 0 — 3 - 8 — 1 -12 + 5 — 2 + 2 — 3 - 3 - 3 Debits + 3 + 4 +15 +19 + 9 +12 + 2 + 5 — 1 +25 +31 +22 Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) July 1935 index General index (weighted)___ Manufacturing............................. Anthracite mining....................... Bituminous coal mining............ Building and construction........ Quarrying and non-met. mining Crude petroleum producing. . . Public utilities.............................. Retail trade................................... Wholesale trade........................... Hotels.............................................. Laundries.................................. Dyeing and cleaning.................. 105 118 80 108 71 105 211 89 103 104 102 98 99 Per cent change from July 1934 June 1935 — 1 + 1 — 7 -10 -13 — 17 — 1 - 1 + 2 + 2 - 7 - 0 — 3 - 3 — 0 — 13 -15 + 4 - 6 - 1 + o - 7 + o - 3 + 1 - 2 Payrolls Per cent change from July 1935 index 114 139 70 87 67 131 174 90 103 98 96 100 106 July 1934 June 1935 — 1 + 3 -11 -38 - 3 -14 - 3 + o + 1 + 1 - 3 + 5 - 2 — 10 — 4 -43 -56 + 4 -11 + 3 - 1 - 7 — 0 - 7 + 1 -13 Retail trade sales + 7 +10 + 7 + o +18 + 5 + 0 + 8 + 9 + 9 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA 12 MANUFACTURING AND NON-MANUFACTURING INDUSTRIES AND SERVICES PERCENT PAYROLLS +10 July 1935 from June 1935 1 5 0 1 0 0 2 6 2 2 1 3 1 - 25 +389 - 85 - 6 + 54 + 22 — 66 +120 +612 +166 - 18 + 39 - 31 + + + + -b 7 3 6 5 5 6 2 1 4 3 0 3 6 -27 — 22 -28 -25 -10 -34 -32 —25 -40 -25 EMPLOYMENT -20 1932 * Area not restricted to the corporate limits of cities given here. 1933 1934 1935 Page Seven RETAIL TRADE Index numbers of individual lines of trade and manufacture PHILADELPHIA FEDERAL RESERVE DISTRICT Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 Adjusted indexes allow for the usual Not adjusted Adjusted for seasonal variation seasonal change in activity. Unadjusted indexes reflect merely the Per cent cha nge actual change which may or may not be typical. 1935 July VI ay June July July May Tune July July from from 1934 1935 1935 1935 All figures are rounded from 1934 1935 1935 1935 Month Year 7 mos. original data. 1934 ago ago DEPARTMENT STORES Retail trade Sales Total of all stores...................... Department............................. Men’s apparel......................... Women’s apparel................... Shoe........................................... Credit........................................ 62 59 59 75 58 66 66 64 56 84 71 67 71 69 67 87 71 71 67p 62p 67p 85 56 75 - 6 + « - 10 + 6 — 0 + 13 — 3 + 13 — 21 — 4 + 6 + 14 Stocks of goods Total of all stores...................... Department............................. Men’s apparel......................... Women’s apparel................... Shoe........................................... Credit........................................ 63 53 69 91 58 70 62 54 66 87 56 71 61 52 66 87 54 69 61p 50p 7 Ip 87 53 68 — 0 - 4 + ii + i - 2 — 1 — + — — - + + + + + 0 0 3 1 3 4 3 5 7 5 9 2 Rate of stock turnover 7 months (actual, not indexes) + 5* 45 43 40 50 53 43 67 63 52 86 79 71 70 66 70 85 81 67 49p 46p 52p 56 51 49 57 48 56 70 54 69 62 53 66 88 57 69 58 50 63 78 53 67 55p 46p 60p 66 49 67 MEN'S APPAREL STORES • STOCKS r 2.25 2.14 Sales Total of all lines.......................... Boots and shoes...................... Drugs........................................ Dry goods........ ........................ Electrical supplies.................. Groceries.................................. Hardware................................. Jewelry..................................... Paper......................................... 81 40 91 41 107 110 41 32 63 Stocks of goods Total of all lines......................... Boots and shoes...................... Drugs........................................ Dry goods........ ........................ Electrical supplies............... . Groceries.................................. Hardware................................. Jewelry..................................... Paper......................................... 70 70 22 18 102 108 112 43 42 101 83 66 67 50 49 59 62 61 78p 81 83 59 55 41p 88 87 91 40 38 42p 83p 107 101 113 108 11 Op 48 50 47p 39 44 37 66 67 63p 66 09. 67p 26 97 41p 94 80p 68p 46 61p — — + + - 4 — 3 25 + 3 3 — 3 10 18 — 22 2 + i 5 + 16 17 + 14 5 + 1 + 32 29 — 9 + 21 55 + 7 + 12 51 53 5!)p + 12 + 30 51 62 + 23 - 11 84 82 - 3 + 18 13 15 + 21 + 11 39 42 + 8 - 1 18 17 - 8 - 37 79 75 — 4 — 44 72 80 + ii — 7 77 84 + 8 + 93 41 44 + 7 + 28 128 129 + 1 + 170 105 103 - 1 + 23 114 124 + 8 — 3 43 37 - 13 — 9 29 28 - 1 — 11 17 17 - 2 + a - 4* — 6* 68 69 + i — 24 39 106 +171 + 31 60 61p + 2 - 10 89 87 - 2 + 13 63 59 - 6 — 0 87 84 - 3 + 4 128 155 + 21 + 17 105 116p + 10 - 3 78 70 - 10 - 8 78r 80 + 3 + 12 140 135p - 3 — 6 80 69p - 14 — 5 * Computed from data unadjusted for seasonal variation. Page Eight + + + + + 5 75 0 33 0 85 4 32 3 87 7 111 8 40 13 22 7 59 78 77 59 47 87 87 38 35 83 81 112 110 53 52 33 37 65 64 73p 34p 83 32p 68p 111 46p 25 60p 65 22 101 45 78 75 62 53 59 69 68 17 21 109 105 42 42 100 99 77 76 68 69 53 53 61 61 66p 26 96 42p 94 74 p 69p 53 61p — 4 + 1 + 39 + 16 — 13 — 5 — 2 - 7 — 7 + 20 — 4 — 1 + 2 + n — 5 — 1 — 0 + 3 Rate of stock turnover 7 months (actual, not indexes) 24 28 Pig iron.............................................. 49 55 Steel................................................... 46 48 Iron castings. .................................. 70 44 Steel castings................................... Electrical apparatus...................... 69 96 11 Motor vehicles................... ............. 14 Automobile parts and bodies----42 34 Locomotives and cars.................... 27 21 Shipbuilding..................................... 134 136 86 76 Silk manufactures........................... Woolen and worsteds.................... 43 75 Cotton products.............................. 34 41 Carpets and rugs............................ 48 118 84 114 Hosiery.............................................. 128 125 Underwear........................................ 41 45 Cement.............................................. 32 24 Brick.................................................. 17 Lumber and products.................... 16 Bread and bakery products......... Slaughtering, meat packing......... 90 75 82 81 Sugar refining.................................. Canning and preserving............... 68 59 94 Cigars................................................ Paper and wood pulp.................... 59 61 86 Printing and publishing............... . 81 132 137 Shoes................................................. Leather, goat and kid................... 120 121 . 77 79 Explosives...................................... Paints and varnishes..................... . 72r 74r . 143 140 Petroleum products..................... 80 Coke, by-product......................... + + + 0* 21 + 1 + 8 — 6 + 30 + 4 17 — 1 + 1 — 8 + 73 + 4 +118 + 12 + 20 — 5 — 6 — 11 _ 1* — 18 — 22 — 5 + 1 + 4 + 0 + 4 4 — 8 + 3 + 0 — 3 p—-Preliminary. A: i i. WvL/^ *: Vif V / Wholesale trade Output of manufactures * a V\y : V \JI \V}J SALES WOMENS APPAREL STORES 3.42 3.41 SHOE STORES 22 44 44 62 73 14 41 27 130 84 41 30 44 69 106 48 31 17 92 80 83 55 83 57 79 123 105 75 67r 144 71 30 58 50 45 88 14 35 21 140 73 60 41 114 114 126 51 26 16 87 76 100 45 91 61 87 124 110 80 79r 140 83 30 52 52 53 84 15 39 19 78 69 74 39 121 103 114 52 30 17 90 65 42 43 96 63 86 122 106 78 80r 141 80 27 50 57 55 86 15 40 17 73 79 78 38 117 85 103 44 27 18 87 62 108 42p 94 57 82 144 102p 69 75 136p 67p r Revised. CREDIT STORES 1932 1933 1934 1935
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