The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW o Ce it a dB s e s Cn itio s f r d n uin s o d n Second Federal Reserve District F d ra E s rv A e t e e l ee e g n F d ra E s rv B n , NwY rk e e l ee e a k e o Mn yMrk t inJ n o e a e ue Ecs rsre o t epinipl Nw okCybns xes eevs f h r c a e Yr it ak a e f cut gao n $ ,2 0 0 ,0 0int elat rpr ft r lut ain r ud 1 0 ,0 0 0 h te at o Mya der Jn, do pda r plyt alitleoe f a n aly ue r pe but o t vr $ 0 ,0 0 0 a t em d o Jn, rf cin t eef cs 6 0 0 ,0 0 t h idle f ue elet g h fet o Tes r f ac gadino et xcllet n. Fr f rauy innin n cm a o cios o t ec ut ya awo , ecs rsre rs t naly h o nr s hle xes eevs oe o er $ ,0 0 0 ,0 0int eer pr o t emnh t eh h 3 0 ,0 0 0 h aly at f h ot , h ig etlee snet eer pr o Mrha dt e dopd s vl i c h aly at f ac , n hn r pe t a litle oe $ ,0 0 0 ,0 0 o Jn 1. I bt o t vr 2 0 ,0 0 0 n ue 7 n oh csst ea o n o ecs rsre o Jn 1 wst e ae h mut f xes eevs n ue 7 a h s a s inmr t a aya. A t e acma y g mllet oe hn er s h co pnin d ga inict s t e vlu e o m br bn ecs iar m d ae, h o m f e e ak xes m rsre hs be af ce b Gvr mn f ac g eevs a en fet d y oen e t innin oeaios inec o t e rcn t x pr d, b t t e pr t n ah f h ee t a eios u h rdcio at ibt b t t a fat r ws lagr t is e ut n tr uale o ht co a r e h mnht a ee bf r, a Tes r blacs in t e ot hn vr eoe s r auy a ne h Rsr eBns rahdanwh hpin a mr t a eev a k ec e e ig o t t oe hn $ ,4 0 0 ,0 0 1 0 ,0 0 0 . Tepinipl cueo t isrdcio inm brbn h r c a as f h e ut n e e ak m rsre adi ces inTes r dps s o Jn 1 eevs n nrae r auy e oit n ue 5 wscs py e t fo nw oen e tsc r ie, wic a ah amns r e Gvr mn euit s h h a o ne t $ 7 ,0 0 0 in t is d t ic a d naly mut d o 4 5 0 ,0 0 h isr t n er $ 0 ,0 0 0 fo t e cut y a awo . I cm t x 9 0 0 ,0 0 r h o nr s hle no e a cllet n adohr Tes r rcips inluin t e o cios n t e r auy ee t, c d g h rt e e t o pe re sok in bns hld b t e eirmn f r fer d t c ak e y h Rcnt ut n F a c Cr oaio , s bt nia eo sr cio inne opr t n usa t lly ecee ineet py e t b t eTes r adohr xedd t rs amns y h r auy n t e Gvr mn d bre e t. oen e t is usmns O t eohrhn, t ehaygldinlo dr gt e n h t e a d h ev o f w uin h f s t re wes o Jn t ne t i ces m br irt he ek f ue e dd o nrae e e m bn rsre, c ielyinNwYr , a dof e t sm ak eevs h f e ok n fst o o e et n t ewhr wlso fu d b t eTes r . Gld xe t h it da a f ns y h r auy o rcipsa t ePr o Nw okdr gt efo rwes ee t t h ot f e Yr uin h u ek e ddJn 2 a o ne t a poimt ly$ 0 ,0 0 0 . ne ue 4 mut d o pr x ae 2 0 0 ,0 0 Tismvmn, hwvr cae a t ee do t et ir h oe e t o ee, esd t h n f h h d we o Jn. ek f ue Vt rn A j se Sric Bns ee a s dut d ev e od A r Jn 1, a r p rac mlaio o ecs fte ue 5 a id ecu u t n f xes rsre o m br bns oc re , de vr lagly eevs f e e ak curd u ey r e m t t ecs in o Vt r n Ajut dSric bnsad o h ah g f eea s d se ev e od n t ecek isudt vt r n fo t eoda onspyb h hcs s e o eeas r h d mut aale ina d io t t ebns wic wr isudin$0uit . dit n o h od, h h ee s e 5 n s I t eFdr l Rsr eBn o NwYr alag saf n h e ea eev a k f e ok r e t f hdbe wr in udrpes r fo anme o w k a en ok g ne rsue r u br f e s e t pe aet eAjut dSr ic bnsadc ek f o o rpr h d se ev e od n hcs r m liss crif d b t e Vt r n Am isr t n t t e t et ie y h eea s d in t aio o h Tes r d brin ofcr ad s ila saf wr r auy is us g fi e, n im r t fs ee Ju 1 13 ly , 96 ogn e inec o t eohr Fdr l Rsr e Bns r a izd ah f h t e e ea eev a k a dint eTes r Dprmn a Ws int n I t is n h r auy e at e t t ah go . n h d t ic oe 4 0 ,0 0 bns wr incibdwh t e isr t vr ,0 0 0 od ee sr e it h nm o aot 3 5 0 vt r n a d pe ae , wh a e f bu 8 ,0 0 eea s n rprd it s cek fo t e oda o ns fo milin t vt r n. hcs r h d mut, r a g o eea s Teblko t eebnsadcek wr ra yfo d h u f hs o d n hcs ee ed r is t ib t na ds nt t ePs Oi eo o bf r Jn 1, r uio n e t o h ot f c n r eoe ue 5 f s t a t e cu b d t ibt dpo plyt t evt r n. oht hy old e isr ue r mt o h eeas A lag pr o t e c ek fo od a ons wr r e at f h hcs r d mut ee cs e wh afe dy, a dwh awe cs py ahd it in w as n it in ek ah a m t o c ek isudfo t erdmt no Ajut d e s f hcs s e r h e e pio f d se n Sr ic bnsrahdadilyvlu eo 2 t 2 m n ev e od ec e a o m f 0 o 5 illio dllas int is d t ic a dao n 10 m ndllas o r h isr t n r ud 0 illio o r fo t e c ut y a awo , a e wic t ee ws a r h o nr s hle ft r h h hr a ga ul dc e Tee py e t , t gt e whohr r da elin. hs amns oehr it t e Gvr mn d bre e t, hdt e ef c o rdc g oen e t is usmns a h fet f e uin Tes r blacs int eRsr eBns r p ly Te r auy a ne h eev a k a id . h cs in o Ajut dSr ic cek adbns rs lt d ah g f d se ev e hcs n od eue inas bt nia t o g poalyt moay i ces in usa t l, huh r bb e pr r , nrae t ea o n o c re c o t t nin, hwvr adut h mut f urny usa d g o ee, n nil t isc re c f d it wybc t t ebns py e t h urny ins s a ak o h ak, amns oto t eTes r acutw nthv t e fu ef c u f h r auy con ill o ae hir ll fet ininrain mme bn rsre. Ft emr, a ces g e br ak eevs uhr oe s t e Jn mnh n a d Fut o J ly hlidy h ue o t -e d n o rh f u o a apoc e , afut e i ces o asaoa nt r in pr ahd rhr nrae f es nl aue t ea o n o c re c inc c laio ws inpopc. h mut f urny iru t n a r s et Nvrhles b Jn 2, a a rs lt o Tes r eet e s, y ue 4 s eu f rauy d bre e t, t gt e wh gld imot , ecs is usmns oehr it o prs xes rsre o t eNw okCybnshdr e t aot eevs f h e Yr it ak a isn o bu $ 3 ,0 0 0 , adecs rsre o a m br bns 7 5 0 ,0 0 n xes eevs f ll e e ak m Excess Reserves of All Member Banks and Treasury Deposits in Federal Reserve Banks MONTHLY REVIEW, JULY 1, 1936 50 hdr e aoe $ ,4 0 0 ,0 0 ad fut e inrae a is n bv 2 0 ,0 0 0 , n rhr cess apae t b inpopc. perd o e r s et Mny Rts o e ae Ds it t ew ef cut n inm brbn rsre, ep e h id lut aio s e e ak eevs m mnyr t ss o e litlec ag dr gJn, ecp fo oe ae hwd t hne uin ue xe t r as h inraeiny ld o Tes r nt s lig t ces ie s n rauy oe. M oney Rates a t N ew Y o rk June 28, 1935 M a y 29, 1936 June 29, 1936 Stock Exchange call loans........................ Stock Exchange 90 day loa n s................. P rim e commercial paper— 4 to 6 m onths B ills — 90 day unindorsed........ ................ Customers’ rates on com m ercial loans (Average rate of leading banks a t m idd le of m o n th ) .............................. Treasury securities: M a tu rin g December (y ie ld ) ................ M a tu rin g Feb rua ry 1938 (y ie ld ). . . . Average y ie ld on Treasury notes (1-5 y e a rs )........................................................ Average yield on Treasury bonds (more th a n 5 years to earliest call date) . . . . Average ra te on latest Treasury b ill sales 273 day issue................................ Federal Reserve B ank of N ew Y o rk re discount ra te ........................................... Federal Reserve B a n k of N ew Y o rk b u y ing ra te fo r 90 day indorsed b ills . . . . X *x X X 1 1 x * ix H X 1.79 1.67 1.67 N o yield N o yie ld .14 N o y ield .23 .53 .69 2.4 4 2 .3 2 .12 .20 t .79 #2.34 .19 IX IX IX X X X * N om in al. f -Average raised .05 b y inclusion of l z% per cent Treasury / note issue m a tu rin g June 15, 1941. # Average raised .02 b y inclusion of 2% per cent Treasury bond issue of 1951-54. Mme Bn Ceit e br a k rd Dr gt et rewese ddJn 1 t et t l lon uin h he ek ne ue 7 h oa as adinet e t o we lyr prin m br bns in n vsmns f ek e ot g e e ak m NwYr C y inrae $ 8 ,0 0 0 , t t e h hs e ok it cesd 4 0 0 ,0 0 o h ig et pin ee rahd laglyincnet nwht eGv o t vr ec e , r e oncio it h o en e t f a c go Jn 1. Fr sm wes pio r mn innin n ue 5 o o e ek r r t t es bcipio sfo t enwTes r sc r ie t e o h usr t n r h e r auy euit s h Nw okC ybnshdbe a d gt t e hld g e Yr it ak a en din o hir o ins o Gvr mn sc r ie, prly t r uhprhss o f oen e t euit s at ho g uc ae f t ewe lyisuso Tes r b , ada pr nlya o h ek s e f r auy ills n pae t ls t r uh aqis io s o Tes r nt s mt r g o ho g c u it n f r auy oe auin n Jn 1 adAg s 1 wic wr ec agalefo t e ue 5 n uut , h h ee xhneb r h nw r auyi s e. I t ewe e ddJn 1 t ee e Tes r sus n h ek ne ue 7 hr ws afut e inraeo $ 4 ,0 0 0 , adt t l hld a rhr ces f 1 0 0 ,0 0 n oa o ins rahdavlu e $ 3 ,0 0 0 aoe t e lags g ec e o m 4 2 0 ,0 0 bv h r et a o n hldinMrh mut e ac . Telon o t eNw okCybnst boesad h as f h e Yr it ak o rkr n da r inrae b mr t a $ 0 ,0 0 0 int ef s eles cesd y oe hn 2 0 0 ,0 0 h irt we o Jn, poalydeinlag m s r t da r’ ek f ue r bb u r e e ue o e les a bro inst c ryt eprfo so Gvr mn sc r or w g o ar h ot lio f oen e t eui te wic t e hdaqirdt ec ag fo nwsus i s h h hy a c u e o xhne r e i s e. A rJn 3t evlu eo s c lon s o e aga ul fte ue h o m f uh as hwd r da rdcio , btrmindh hro Jn 2 t a amnh e ut n u e a e ig e n ue 4 hn ot peios La sohrt a s c r ylon a dhld g rv u. on t e hn euit as n o ins o sc r ie ohrt a Gvr mn i s e s o e s a f euit s t e hn oen e t sus hwd mll nt i cessint efo rwese ddJn 2. e nrae h u ek ne ue 4 I rprin mme bns in 10 ohr pinipl n e ot g e br ak 0 t e r c a c ie t r uhu t ecut y hld g o Gvr mn it s ho g o t h o nr , o ins f oen e t sc r ie wr rdcd ga ully fo svr l wes euit s ee e ue r d a r eea ek pee in t eJn isus b tint ewe e ddJn 1 rcd g h ue s e, u h ek ne ue 7 t eewsa i ces o $ 3 ,0 0 0 wic , a int e hr a n nrae f 3 4 0 ,0 0 h h s h cs o t e NwYr Cy bns r isdGvr mn ae f h e ok it ak, a e oen e t s c r yhld g t anw ig lee Teebnsa o euit o ins o e h h vl. hs ak ls hdamdr t inraeint e lon o sc r ie, ad a oeae ces hir a s n euit s n s a i cessinohrlon adinsc r ie ohrt a mll nrae t e as n euit s t e hn Gvr mn i s e. Te inrae int e t t l lon oen e t sus h ces hir oa as a d inet e t in t e fo r wes e dd Jn 2 n vsmns h u ek ne ue 4 a o ne t $ 0 ,0 0 0 . mut d o 3 3 0 ,0 0 G overnment S e c u r it ie s O Jn 1t eSceayo t eTes r anucd n ue h ert r f h r auy none of r g o a poimt ly$ 0 ,0 0 0 o 2 prcn feins f pr x ae 6 0 0 ,0 0 f % e e t Tes r bns o 15-5 a d $ 0 ,0 0 0 o 1 r auy od f 91 4 n 4 0 0 ,0 0 f % prcn Tes r nt sdeJn 1, 14, t b i s e e e t r auy oe u ue 5 91 o e sud o Jn 1. Ad io a a onso t esm sc r ie n ue 5 d it nl mut f h a e euit s wr of rdinec ag fo Tes r nt s mt r g ee fee xhne r r auy oe auin o Jn 1 a dfo Tes r nt smt r gAg s 1 n ue 5 n r r auy oe auin uut . Te sc r ie of rd fo cs s bcipio wr h euit s fee r ah usr t n ee po ply oes bcibd s bcipio s fo bt i s e r mt vrusr e , usr t n r oh sus bin a poimt ly svn t e t e a o n of rd e g pr x ae ee ims h mut fee. A t e t o t e Tes r bns a o ne t llomns f h r auy od mut d o $ 7 ,0 0 0 a do t e nt s $ 3 ,0 0 0 , at t l o 6 1 0 ,0 0 n f h oe 4 5 0 ,0 0 oa f $ ,1 6 0 ,0 0 O t e t t l a o n, $ 3 ,0 0 0 , o 1 0 ,0 0 0 . f h oa mut 5 9 0 ,0 0 r s hlyudrhlf, wsa te int isd t ic. Hldr lig t ne a a llot d h isr t o es o Tes r nt smt r go Jn 1 a dAg s 1 f r auy oe auin n ue 5 n uut s o e ad t c peee c fo t enw r auybn s hwd isint rf rne r h e Tes r o d; ec agso Jn 1 adAg s 1nt sfo t eTes xhne f ue 5 n uut oe r h r a uy bns a o ne t $ 5 ,0 0 0 , wile ec ags r od mut d o 9 6 0 ,0 0 h xhne fo t enw r auynt st t le lest a $ 9 0 ,0 0 r h e Tes r oe oa d s hn 6 ,0 0 0 . Te Tes r cnine t i s e $ 0 0 ,0 0 o 23 h r auy o t ud o su 5 ,0 0 0 f 7 dy Tes r b ad a a d io a $ 0 0 ,0 0 o a r auy ills n n dit nl 5 ,0 0 0 f Tes r b de Dcme 1, 13, ec we, r auy ills u ee br 5 96 ah ek wees mt r g Tes r b a o ne t hra auin r auy ills mut d o $ 0 0 ,0 0we ly O Jn 2, hwvr t eTes r 5 ,0 0 0 ek . n ue 5 o ee, h rauy anucdt a t ewe lyi s eo Dcme Tes r none ht h ek su f ee br rauy b wsbin d cnine . ills a e g isot ud Asr n mr e fo Gvr mn sc r ie f llo e t o g akt r oen e t euit s o wd t eanucm to t enwTes r bnsadnt s h none e f h e rauy od n oe n o Jn 1 Qoaio s o t e sc r ie t b i s e n ue . ut t n n h euit s o e sud Jn 1 rs qic lyt ape iu , adpics o o t ue 5 oe u k o rm m n r e f u sa d gTes r i s e a o avne . Te aeae t nin r auy sus ls da cd h vrg y ldo Tes r bns mt r g inmr t a fv ie n r auy o d auin oe hn i e yas dc e t 2 0 pr cn, e ulin t e peios er elind o .3 e e t qa g h rv u lo pin fo rcnyasrahdinMy Sbe unly w o t r ee t er ec e a. us qe t t a in d in hdinvlu ea dpicsrcddga u r d g im is e o m n r e eee r d a , bt t e aeae y ld o Tes r bns a e lly u h vr g ie n r auy od, ft r a wnefo t e ef c o t e nwi s e o Jn 1, llo ac r h fet f h e su n ue 5 wst esm a t ee do Jn a a t ee do My a h a e t h n f ue s t h n f a. Teaeaey ldo Tes r nt so 1 ya mt r y h vr g ie n r auy oe f -5 er auit , whs ila a jut e t fo t eef c o t enwi s e it im r d smn r h fet f h e su o Jn 1, a ors ga ullya e t ef s fe dy n ue 5 ls oe r d a ft r h irt w as o t emnh a da t ee do Jn ws0 5prcn f h o t , n t h n f ue a .0 e et h hrt a a t ee do My ig e hn t h n f a. Blsa dCm e ca Ppr i l n o mri l ae Ta in at it int eb mr e dr gJn cn r d g civ y h ill akt uin ue o t udt b s a invlu eadr t swr uc a gd ine o e mll o m n ae ee nhne . A t ee do Myo t t nin b a o ne t $3 ,t h n f a usa d g ills mut d o 3 1 0 0 0 a cmae wh$ 4 ,0 0 0 fo Ar ad 0 ,0 0 s o prd it 3 4 0 ,0 0 r pil, n $ 7 ,0 0 0 aya ao Te dc e fo t e mnh 3 5 0 ,0 0 er g. h elin r h ot rf ce s a dcess inb bsdo eprs a d elet d mll erae ills ae n xot n dm t wrhuece it adinb bsdo gos o e ic ae os rd s n ills ae n od s soe ino s ipe bt enfoe ncut ie. Ac p t rd r h pd ewe r ig onr s ce t in bns adbnes cnine t hldaot 9 pr g ak n akr o t ud o o bu 0 e cn o a b da n e t f ll ills r w. I t e cmec l ppr mr e a o s le vlu e n h o m ia a e akt ls a s o m r rminds a depimr t inb yo da r t e a e mll, u r aily o a ilit f eles o sc r aeut qa t ie o nwpprwhwic t eue dqae unit s f e a e it h h o fill t eat edmn. Teaeaer no pim fo r h civ e ad h vr g u f r e u t s mnhcmec l pprcnine a %prcn. o ix o t o mria a e ot ud t e e t Epc llyc oc nm o s ot rmt r y we aa s eia hi e a e f hre auit , hn vil s FEDERAL RESERVE AGENT AT NEW YORK 51 ale wr qoe a s hlylo e lee . Cmec l Ac sif aio o foe nlo gt r inet e t in b , ee ut d t lig t wr vls o mria las ict n f r ig n em vsmns pprda r rpre $ 8 ,0 0 0 o ppro t t nin t is cut ya t e e do 13, acr in t t p o ae eles e ot d 1 4 0 ,0 0 f ae usa d g h o nr t h n f 95 cod g o y e f a t ee do My a cmae wh$ 7 ,0 0 0 fo inet e t a dcut y o o nrh , is s o nint e t h n f a s o prd it 1 4 0 ,0 0 r vsmn n o nr f wes ip hw h Ar ad$ 7 ,0 0 0 fo My13. pil n 1 3 0 ,0 0 r a 95 acma y g t b . Fr ig hld g o A eic n co pnin ale oe n o ins f mr a sok a dbns a $ ,9 1 0 ,0 0 acut fo naly t c s n od, t 2 5 ,0 0 0 , con r er F r ig L n T r In e e ts inth U ite 6 pr cn o t e t t l. Te ya-e dmr e vlu o e n o g e m v stmn e n d 0 e e t f h oa h er n akt a e S te ta s o cmo sok inet e t ws p cd a $ ,0 5 f o mn t c vsmns a lae t 2 1 ,O t ebs o a et ne s eia s r e, t eF a c 00 0 , a dt e pr vlu o foe n e bns ad nh ais f n xe dd pc l uvy h inne 0 ,0 0 n h a a e f r ig -hld od n D is no t eDprmn o Cmec hset ae pe re sok a $ 3 ,0 0 0 . S hlyoe 2 pr iv io f h e at e t f o m e a simt d r fer d t c s t 9 6 0 ,0 0 lig t vr 0 e r t evlu o foe nlo gt r inet e t int eUit d cn o foe ninet e t hr ae inlue in t e h a e f r ig n em vsmns h n e e t f r ig vsmns ee r c dd h Sae a t ee do 13 a $ ,0 5 0 ,0 0 a cmae ct gr o d et inet e t, rpee t gt eage t t s t h n f 95 t 5 3 ,0 0 0 , s o prd aeoy f irc vsmns e rs nin h gr r ig -c nr lle dsr l wh$ ,2 0 0 ,0 0aya er r Tei ces int e gt foe n ineet in foe n o t o d inut ia it 4 7 ,0 0 0 er alie. h nrae h ae r ig t rs rcr e vlu o s c inet e t dr g13 wsde cr oaios in t is cut y Te rmin g 2 pr eodd a e f uh vsmns uin 95 a u opr t n h o nr . h e a in 0 e bt t t euwr t ne c o A eic ncmo sok cn o foe nlo gt r inet e t int is c ut y oh o h p ad e dny f mr a o mn t c e t f r ig n em vsmns h o nr , h pics wic risdt emr e vlu o eisin foe n s o nint e t b a “O e I vsmns cniss r e, h h a e h akt a e f x t g r ig hw h ale s t r net e t ”, os t hld g o cmo sok, adt r t e et niv nt o ast hldint utfo foe nacut t ente u y o ins f o m t cs n o ahr xe s e e f ses e r s r r ig con, h e qit n aqis io so A eic nsc r ie b foe ninet r o foe ninuac cma ie inUit dSae bac e c u it n f mr a euit s y r ig vsos f r ig s r ne o pn s n e t t s rnhs d r gt escn hlf o t eya. Teino edr e a daf t s a dfoe n hld g o mrggs ad uin h eod a f h er h cm eivd n filiae, n r ig o ins f ot ae n h ru f fr mfoe nlo gt r inet e t hr ws et ae ra et t . Tems imot n it mint is go po o r ig n em vsmns ee a simt d el sae h ot pra t e b t eF a c D is na $ 4 ,0 0 0 in13, inic t inet e t cnisso sc r ie a dpoet s a m y h inne iv io t 1 0 0 ,0 0 95 d a vsmns os t f euit s n r prie d in t rd y r ses r r ig e eic r s uh vs in a aeaert o r t r int enigbr odo 3 isee b tut e fo foe nbnf iaie. Sc inet g n vrg ae f eun h e hoho f mns wic aes m ht ab r r vluda $ 1,e t, h h r o e a r it aily a e t 45 w prcn. e et Teaoef ue, cmindwht eF a c D is n 0 0 0 , cnis inlag pr o sok adbns nt h bv igrs o b e it h inne iv io 0 ,0 0 os t r e at f t c s n od o et ae o t enm a vlu o A eic ninet e t e e hr rcr e . simt s f h o inl a e f mr a vsmns lswee eodd infoe ncut ie a dt eino ercivdfr ms c I ea in gt egor picl d t ibt no foe n r ig onr s n h cm ee e o uh n xm in h ega h a isr uio f r ig inet e t, poid am s r o t is c u t y nt lo gt r inet e t int is c ut y it apas t a vsmns r v e e ue f h o nr ’s e n em vsmns h o nr , per ht a ce it r ps io o lo gt r acut Te nm a Bit h inet e t cnt ue aot 2 pr cn o rd o oit n n n em con. h o inl r is vsmns o sit t d bu 7 e e t f vlu o A eic npivt lo gt r inet e t ara t et t l, Cnd ninet e t 2 prcn, adDt h a e f mr a r ae n em vsmns bod h oa a aia vsmns 0 e e t n uc , a t ee do 13, t elaet dt fo wic pb hd S is, a dFe c inet e t cminda a d io a t h n f 94 h t s ae r h h ulis e ws n r nh vsmns o b e n dit nl f ue aeaa b , ws et ae a $ 3 1 ,0 0 0 , 2 pr cn. Teef e cut ie t gt e hldaot igrs r vilale a simt d t 1 ,1 4 0 ,0 0 9 e e t hs iv onr s oehr e bu o wic $ ,8 8 0 ,0 0cnise o d et inet e t t re ureso t et t lfoe nlo gt r inet e t f h h 7 1 ,0 0 0 os t d f irc vsmns he-qat r f h oa r ig n em vsmns h n e t t s n vr a f h e a dr ar a, a dt e rmine, $ ,2 6 0 ,0 0 o foe n int e Uit dSae, a doe hlf o t e rmine bod n h e a dr 5 9 ,0 0 0 , f r ig dlla bnsadohrprfo inet e t. Tec re t ws o ndb Er pa cut ie woe hld g ae o r od n t e ot lio vsmns h urn a we y uo e n onr s hs o ins r mr e vlu o t eeinet e t, hwvr i cnidr nts pr t lys o nint et b blo . akt a e f hs vsmns o ee, s os e o e aae hw h ale e w alylo e. Teino ercivdfr mhs inet e t b wr h cm ee e o t ee vsmns dr g13 wsp cda $ 5 ,0 0 0 , adt einict d uin 94 a lae t 4 5 0 ,0 0 n h d ae aeaer t o rt r dr gt eya wsaot3 pr vr g ae f eun uin h er a bu .4 e cn. Tenm avlu o A eic ninet e t ar a e t h o inl a e f mr a vsmns bod apast b s hlymr t a t oadahlft e t e per o e lig t oe hn w n a im h s vlu o foe nlo gt r inet e t int is c ut y a e f r ig n em vsmns h o nr , ad t e ino e rcivd o A eic n inet e t n h cm ee e n mr a vsmns ara s m htmr t a t ret e t ei cmpid bod o e a oe hn he im h no e a w s o foe ninet e t int eUit dSae. n r ig vsmns h n e t t s A et ae o foe n inet e t in t e Uit d n simt f r ig vsmns h n e Sae pe ae b S Gog Pis , e it r o t e t t s rprd y ir er e a h d o f h Lno S tis fo t e Nt nl Mnt r Cmis S c r Mr e o dn ta t, r h aio a o eay o m s nin11 p cdt evlu o foe nlo gt r inet e uity a k ts io 90 lae h a e f r ig n em vs h vr g a unvr f t c s n h e Yr mns in t is cut y a r uh $ ,0 0 0 ,0 0 o Teaeaedilyt r oe o sok o t eNw ok et h o nr t o g ly 6 0 ,0 0 0 , f wic $ ,5 0 0 ,0 0wshldinGetBit in $ ,0 0 SokEc a g ws les t a 1 0 ,0 0 s ae dr g h h 3 0 ,0 0 0 a e r a r a , 1 0 ,- t c xhne a s hn ,0 0 0 hrs uin 00 0 in Gr a y $ 5 ,0 0 0 in Hlla d ad Jn, bt sokpics cnine t eireu r avne 0 ,0 0 emn, 7 0 0 ,0 0 o n, n ue u t c r e o t ud h r g la dac $ 2 ,0 0 0 inFa c. Teino edr e fr ms c wic bgniner My A ars ltt egnr l lee 6 0 0 ,0 0 r ne h cm eivd o uh h h ea aly a. s eu h e ea vl inet e t wset ae a naly$ 0 ,0 0 0 aya. o sokpicsa t eedo Jn sod3 prcn aoe vsmns a simt d t er 3 0 0 ,0 0 er f t c r e t h n f ue t o % e et bv O t e bs o t is et ae foe n inet e t in amnhpeio s bt rmindaot 4prcn blo n h ais f h simt , r ig vsmns o t rv u, u e a e bu e e t e w t isc ut ypio t t ewrapa t hv be sm t eA r pa. I d sr ladr ilr a s ae rmind h o nr r r o h a per o ae en o e h pil ek nut ia n a od hrs e a e wa lagr t a a t e pee t t e s get g t a blo t eA r lee btt epb uilit srs dr g ht r e hn t h rsn im, ugsin ht e wh pil vl, u h ulic t ie oe uin t einet e t o foe nc p a int eUit dSae t ecus o t emnht alee o lys hlyblo t e h vsmn f r ig a it l h n e t t s h ore f h o t o vl n lig t e wh d r gt eps-wrpr dhsnt be qit s fi i n h hpin o latFbur , wic wst eh hs sne uin h ot a eio a o en ue ufcet ig o t f s e r ay h h a h ig et i c t of e t eet niv liqidt no foe nhld g o Ag s 13. o fst h xe s e u aio f r ig o ins f uut 93 A eic nsc r ie fr m11 t 11. We acut Pic mvmns in t e md mad lo e gae mr a euit s o 94 o 98 hn con r e oe e t h e iu n wr rd i t kno A eic ninut ia go t dr gt eps dm t cr oaio bns wr s ila t sok s ae f mr a dsr l r w uin h at o e ic opr t n od ee im r o t c h s t e t -fiv yas t e poot nt s ae o foe n pic mvmns Te avne inJn t gt e wh wny e er, h r prio ae hr f r ig r e oe e t. h dac ue oehr it inet r inA eic ninut ywsmc lagrbf r t a o t epeio s mnhws s fic n t cne t e vsos mr a dsr a uh r e eoe ht f h rv u ot a uf ie t o acl h t ewrt a a t epee t t e h a hn t h rsn im. Ar rcsio, adaeaepicsna t ee do t e pil ees n n vr g r e er h n f h ( In m illion s of dollars) Stocks and Bonds Great B r ita in ........................ C an a d a ................................... N ethe rla nd s.......................... S w itzerla n d ............................ D ire c t Investm ents O ther Investm ents T o ta l O ther C ou n trie s................... 609 523 429 311 214 865 362 322 249 13 14 85 403 161 106 75 54 240 1,374 1,006 784 399 282 1,190 T o ta l......................... 2,951 1,045 1,039 5,035 MONTHLY REVIEW, JULY 1, 1936 52 m on th w ere about 1 % p o in ts e s ta b lis h e d la s t F e b r u a r y . w h ic h show ed le s s b e lo w H ig h th e y e a r ’s h ig h s 3,985 g r a d e c o r p o r a t e is s u e s , p ron ou n ced d e c lin e s in A p r il, STATE, MUNICIPAL & FARM LOAN con NEW C A P IT A L t in u e d t h r o u g h th e fir s t h a lf o f J u n e th e u p w a r d t e n d e n c y show n in M ay, and p r ic e s fo r a n u m b er o f years. a g a in e s ta b lis h e d new STATE, MUNICIPAL, & FARM LOAN h ig h s REFUNDING S u b s e q u e n tly , h o w e v e r , th e m a r k e t d e v e lo p e d so m e ir r e g u la r ity . N e w F in a n c in g CORPORATE N ew fin a n c in g lo w in g th e s h a r in g M ay in flo ta tio n p u b lic in c r e a s e d th e of s la c k e n in g , in cr e a s e . about o ffe r in g s w ith and c h ie fly of in v o lu m e a ll P r e lim in a r y p r iv a te of d a ta in June $ 2 0 0 ,0 0 0 ,0 0 0 in d ic a te th e in c lu d in g as M ay com p ared and to ta l w a s S ta te NEW C A PITA L fo l c la s s ific a t io n s p la c e m e n ts , The June s e c u r itie s $ 4 0 0 ,0 0 0 ,0 0 0 A p r il. about d u r in g p r in c ip a l $ 7 5 0 ,0 0 0 ,0 0 0 a p p r o x im a te ly $ 1 ,0 0 0 ,0 0 0 ,0 0 0 in and about com p osed 1936 m u n ic ip a l, Offerings of Domestic Securities in First Six Months of 1936 Compared with Corresponding Period of Previous Six Years and Average for 1925-29 (Commercial and Financial Chronicle data, exclud ing investment trust issues; in millions of dollars. June 1936 figures preliminary) $ 1 8 0 ,0 0 0 ,0 0 0 o f p u b l i c u t i l i t y , $ 1 6 0 ,0 0 0 ,0 0 0 o f i n d u s t r i a l , $ 1 1 0 ,0 0 0 ,0 0 0 r a ilr o a d , $ 8 3 ,0 0 0 ,0 0 0 F ed eral L and B ank, a n d $ 1 0 ,0 0 0 ,0 0 0 F e d e r a l I n t e r m e d i a t e C r e d i t B a n k is s u e s . T h e p r o c e e d s o f th e n e w s e c u r itie s c o n t in u e d t o b e c h ie fly fo r th e r e fu n d in g in te r e s t ra tes, part th e of m oney D is t r ib u t io n p roceed ed lo w in g of o u ts ta n d in g in new is s u e s som e r a is e d th e fa ir ly th e of a lth o u g h w as cases to d e v e lo p m e n t of in is h ig h e r le a s t p r o v id e s e c u r itie s s a tis fa c to r ily b e a r in g at a new s m a ll is s u e s s o m e w h a t le s s r e a d i l y m on th . tow a rd grade th a n to m e d iu m grade T h e la r g e s t o ffe r in g o f th e m o n th of C o n s o lid a te d b o n d s d u e in in 1 1 and w ere th e m o n th . per F ed era l end of q u oted at a s lig h t cen t bonds of th e in d iv id u a l o f w h ic h about $ 5 8 ,0 0 0 ,0 0 0 3 per at 1 00 % p r e m iu m in cen t on Ju n e a t th e end of o u ts ta n d in g 4 % F ederal L an d w ere p u b lic flo ta tio n s has 1935, show n a lth o u g h part th e y of th e c o n tin u e d to ta l. N ew c o n s is te n t g row th s in c e 1933, th e y e a rs p r io r to 1 93 2 . F o r e ig n E x ch a n g e s P o litic a l and fin a n c ia l B an k s, hands w h ile d e v e lo p m e n ts in F ra n ce tin u e d to b e th e m a jo r in flu e n c e in th e fo r e ig n m a rk et d u r in g J u n e . Loan T h ese b o n d s w ere to red eem in c o n s id e r a b le b u t r e m a in s f a r b e lo w th e iss u e s . F arm a p r ic e s w a s t h e $ 8 3 ,0 0 0 ,0 0 0 1 9 5 6 , w h ic h w e r e o ffe r e d th a n fo r ity have M a rk e t re s p o n s e c o n tin u e d to b e m o re fa v o r a b le t o h ig h is s u e th e 1936 c a p ita l o b ta in e d b y d o m e s tic c o r p o r a t io n s t h r o u g h s e c u r o f o u ts ta n d in g s e c u r itie s , th e m a r k e t a p p e a r e d t o a b s o r b new in accou n t to rep orted ir r e g u la r ity to c a p ita l. g e n e r a l, a lth o u g h , f o l som e s m a lle r con exch an ge P r e s s u r e a g a in s t F r e n c h e x c h a n g e a g a in b e c a m e s e v e re in th e e a r ly p a r t o f th e m o n th , b u t a b a ted c o n s id e r a b ly th e r e a fte r . A w ave of in d u s tr ia l s tr ik e s , w h ic h o c c u r r e d s im u lt a n e o u s ly w it h t h e a s s u m p t io n o f o ffic e b y th e n e w P o p u l a r F r o n t G o v e r n m e n t e a r ly in J u n e , s e r v e d t o in t e n s ify r e g a r d in g The th e F ren ch a c c e n tu a tio n th e fe e lin g o f a p p r e h e n s io n fin a n c ia l a n d of p ressu re m on eta ry a g a in s t th e s it u a t io n . fr a n c w as th e r e m a in d e r w e r e h e ld b y v a r io u s G o v e r n m e n t a g e n c ie s . r e fle c te d O n J u n e 3 0 , $ 7 5 ,0 0 0 ,0 0 0 o f N e w Y o r k S t a t e n o t e s m a t u r g o ld in g c o u n t r y , a n d in a fu r t h e r a d v a n c e in th e p o u n d s te r lin g in ce n t. M ay 1937 w ere s o ld a t a p r ic e 0 00 o f 15 y e a r 3 % w h ic h y ie ld 0 .4 0 per p e r ce n t r e fu n d in g d e b e n tu re s a t p a r, im m e d ia te ly la r g e flo ta tio n s w ent w h ic h to a wT r e e N ia g a r a F a lls P o w e r 3% per and th e s lig h t w e ll c e n t b o n d s m a t u r in g 104, to T h e T e x a s C o r p o r a t i o n o n J u n e 1 6 is s u e d $ 6 0 ,0 0 0 ,p r e m iu m . r e c e iv e d O th er w ere The C o . $ 3 2 ,5 0 0 ,0 0 0 is s u e o f r e f u n d i n g W is c o n s in in M a rch P u b lic 1 9 6 6 , o ffe r e d S e r v ic e at C o r p o r a t io n $ 2 5 ,0 0 0 ,0 0 0 is s u e o f r e f u n d i n g 4 ’s m a t u r in g in 25 yea rs, o ffe r e d a t 9 9 % . In in b o th fr o m term s tio n th e of in F ran ce, of b o th to fr a n c -d o lla r N ew per a c c e le r a te d m ost fra n c s of ra te g o ld Y o r k , u n til J u n e fo rw a r d annum fr a n c s m ovem ent s h ip p e d W ith in th e th e p o in t t h r o u g h o u t th is p e r io d . excep fir m n e s s , fr o m d is c o u n t above In of P a r is on 30 th e of th is n e ig h b o r h o o d s h ip p in g q u oted to th e s lig h t t e m p o r a r y 19, a n d w as w as d o lla r s . of r e m a in e d e ffe c tiv e ou tw a rd w h ic h and o c c a s io n a l p e r io d s $ 0 .0 6 5 8 % , th e m on th an th ree per th ree cen t w eeks e n d e d J u n e 1 9 , th e g o ld h o ld in g s o f th e B a n k o f F r a n c e d e c r e a s e d $ 2 0 4 ,0 0 0 ,0 0 0 , o f w h ic h n e a r l y $ 1 6 0 ,0 0 0 ,0 0 0 w a s th e a c c o m p a n y in g th e v o lu m e o f d o m e s tic ta k e n f o r s h ip m e n t t o th e U n it e d m on th s th is is flo w rea ch ed c o m p a r e d w it h th e a v e r a g e f o r th e fir s t h a lf o f th e y e a r s and a fr o m B a n k o f F r a n c e f o r th e w e e k e n d e d J u n e 5. s e c u r itie s flo a te d in d ia g r a m th e fir s t s ix of year 1 9 2 5 t o 1 9 2 9 , a n d w it h th e fir s t s ix m o n t h s o f e a c h su bsequ en t year. A s th is t o t a l is t h e l a r g e s t s in c e r e fu n d in g a lo n e in o p e r a t io n s . d ia g r a m 1930, due C orp ora te th e fir s t h a lf o f 1 9 3 6 in d ic a te s , c h ie fly to r e fu n d in g exceeded by th e th e 1936 heavy o p e r a t io n s $ 3 0 0 ,0 0 0 ,0 0 0 g o ld lo s s of $ 1 0 0 ,0 0 0 ,0 0 0 O w in g t o th e in t e n s ifie d w h ic h th e op era ted pound over 76% S ta te s. its la r g e s t p r o p o r t io n s F ren ch and ad van ced fu r th e r , r e a c h in g and t o u c h in g a $ 5 .0 4 d u r i n g t h e c o u r s e o f t r a d i n g lo w in g on fa rm lo a n th rou g h r e fu n d in g 1935, is s u e s , S ta te , oth er th a n m u n ic ip a l, s e c u r itie s and gu ar a n te e d b y th e U n ite d S ta te s G o v e rn m e n t, w e re so m e w h a t June above s in c e th e 16. T h is F ebru ary A u gu st 1934, d o lla r 1936 w hen th e rep orted fo r th rou g h h ig h a of ou t m on th by th e s te r lin g , th e d o lla r , q u o ta tio n s lig h t ly of over o n J u n e 4 a n d a g a in q u o ta tio n peak, in dem and d ir e c tly t h e t o t a l o f a ll s e c u r it y is s u e s in t h e fir s t h a l f o f 1 9 3 5 . F o l in c r e a s e s w as b o th fr a n c s T h is g o ld e a r ly and m easu res w as w as ta k e n fr a c t io n a lly th e to h ig h e s t e ffe ctu a te 53 FEDERAL RESERVE AGENT AT NEW YORK th e S ilv e r p e r io d P u rch ase A ct of 1934 o f m o d e r a te w e a k n e ss in The a b a tem en t o f p re ssu re s u s p e n s io n o f th e ou tw a rd w ere fo llo w e d by a a g a in s t th e g o ld fra n c The and m ov em en t fr o m th e F ran ce fo llo w e d a n a d d re s s o n J u n e 19 in th e C h a m b e r o f D e p u t ie s by th e F ren ch G o v e r n m e n t ’s M in is te r m on eta ry p rogram in c lu d e d to s p e c u la tio n ch eck a of and F in a n c e , fin a n c ia l r e je c tio n of a g a in s t th e o u tlin in g th e p rogram . d e v a lu a t io n , fra n c , T h is p e n a ltie s and T h e fr a n c -d o lla r ra te p r o m p tly w e n t a b o v e th e e ffe c tiv e g o ld to a m o d e ra te th e u pw ard m on th , cou n t th e on p o in t fr o m te n d e n cy c lo s in g th ree e q u iv a le n t at and on fo rw a r d a b ou t 15 c o n tin u e d d u r in g $ 0 .0 6 6 3 % m on th of P a r is per th e fra n c s la n d th e g o ld v ir tu a lly The a and recovery m o d e ra te cea sed in in fr o m th e F ren ch net p o u n d -d o lla r o u tflo w ra te th ir d to The of red u ced The w eek w as $ 5 .0 1 % and of m on th . a c c o m p a n ie d in s te r lin g , on June a d v a n ce d to $ 5 .0 3 % e ffe c tiv e s im u lt a n e o u s ly a d van ces by th e 22, b u t o n th e 2 7 th . Closing Cable Rates at New York $ .1694 .2207 4.9413 .06639 .4048 .6837 .0831 .2483 .1376 .2546 .3285 B elgium ........................................... Denm ark......................................... E ngland........................................... France.............................................. Germ any.......................................... H olland............................................ It a ly ................................................. N orw ay............................................ Spain................................................ Sw eden............................................ Switzerland..................................... June 29, 1936 $ .1692 .2231 4.9950 .06583 .4024 .6752 .0786 .2511 . 1365 .2577 .3230 fo llo w in g F ran ce. redu ced, on g o ld , th e s la c k e n in g of th e T h e b a n k ’s o t h e r r a t e s w e r e w ith th e w h ic h e x c e p tio n r e m a in s at of 9 th e per ra te ce n t, as T h e N e th e r la n d s B a n k r a te , w h ic h h a d b e e n r a is e d fr o m 3 % to 4 % p e r ce n t o n J u n e 4, w a s re d u c e d to 4 p e r ce n t e ffe c tiv e th e 2 5 th C o m m o d ity W ea th er m any a n d to 3% p e r ce n t e ffe c tiv e th e 3 0 th . P r ic e s .9988 .3295 .0857 .8000 .9984 .3330 .0859 .8000 .2909 .3737 .3956 .2930 .3774 .2988 u n fa v o r a b le in fo r th e s u b s t a n t ia l p r ic e grow th ad van ces n u m b e r o f a g r ic u lt u r a l c o m m o d it ie s d u r in g J u n e . p r ic e s show ed m on th , a n d on June m a ted little th e m ovem ent in th e G overn m en t J u n e 1 0 , in w h ic h e a r ly 1 crop b u s h e ls , about a W heat part of th e r e p o r t , is s u e d w in te r w h e a t p r o d u c tio n a t 4 8 1 ,8 7 0 ,0 0 0 of in w a s e s ti 1 8 ,0 0 0 ,0 0 0 b u s h e ls a b o v e th e M a y 1 e s tim a te , a n d th e s p r in g w h e a t c r o p w a s e s tim a te d at about e ffe ct o n 2 0 0 ,0 0 0 ,0 0 0 q u o ta tio n s . h ow ever, sh arp b u s h e ls , D u r in g a p p a r e n t ly th e r e m a in d e r in c r e a s e s w ere show n had o f th e in w heat p r ic e s , r e fle c t in g p r iv a t e r e p o r ts o f d a m a g e to th e s p r in g w heat crop A s p e c ia l 19 by d r o u g h t in th e N o rth w e s t a n d G overn m en t d e s c r ib in g th e crop s e r io u s report w as dam age w e a th e r in th e n o r th w e s t e r n a re a . h ig h te m is s u e d ca u sed by on June th e dry C o n s e q u e n t ly , th e ca s h p r ic e f o r N u m b e r 1 N o r th e r n w h e a t a t M in n e a p o lis ro se to $ 1 .3 5 % a b u s h e l, w h ic h is 20% ce n ts o f M a y a n d v i r t u a l l y a t t h e y e a r ’s h ig h . above th e end T h e S ep tem b er fu t u r e f o r w h e a t a t C h ic a g o a ls o a d v a n c e d .2942 .3796 .3013 11% 96% .9975 .3350 .0859 .8000 Japan............................................... Ind ia................................................ Shanghai.......................................... r e s u lte d p e r a t u r e s t o g e t h e r w it h in s e c t in fe s t a t io n in o th e r a re a s. $ .1691 .2245 5.0263 .06633 .4036 .6810 .0787 .2527 .1375 .2593 .3275 C anada............................................ A rgentina........................................ B razil............................................... Uruguay.......................................... co n d itio n s crops m on th , M ay 29, 1936 June 29, 1935 2 6 th , fix e d o n M a y 7. little Exchange on th e o u tflo w o f g o ld fr o m to oth er S w itz e r th e o f F r a n c e w a s lo w e r e d 6 to 5 p e r c e n t e ffe c t iv e J u n e 2 4 a n d a g a in t o 4 p e r cen t fo r C h a n g e s o f th e B a n k d is th e s e co n d h a lf o f m ovem ent r e c e d in g s te r lin g s u b s e q u e n t ly w as H o lla n d exchan ge d ow n w ard 27. a year. g o ld b lo c c u r r e n c ie s a ls o r e c o v e r e d in June, r e m a in d e r June cen t show R a te d is c o u n t ra te fro m m easu res d e s ig n e d to b r in g a b o u t a r e p a t r ia t io n o f F r e n c h c a p ita l. s h ip p in g C e n tra l B a n k d o lla r e x c h a n g e . ce n ts to 6 8 % ce n ts a b u s h e l, a n d s p o t c o r n ro s e 7 % ce n ts a b u s h e l, th e h ig h e s t s in c e r e a c tio n , h o w e v e r , w a s s h o w n in la s t ce n ts to N ovem b er. Som e g r a in p r ic e s to w a r d th e clo s e o f th e m o n th . H ig h e r p r ic e s f o r t r u c k c r o p s , e s p e c ia lly p o t a t o e s , a ls o r e s u lte d fr o m G o ld p roved The m ovem ent of g o ld to th is cou n try w h ic h began d u r in g th e la s t w e e k o f A p r i l c o n tin u e d in la r g e v o lu m e th ro u g h th e th ir d w eek in th e r e w e r e n o r e c e ip t s fr o m g o ld , h ow ever, c o n tin u e d June, but a fte r th e F r a n c e a n d H o lla n d . to a r r iv e fr o m 23rd Som e I n d ia . ta ry g o ld sto ck of $ 2 9 ,1 0 0 ,0 0 0 fr o m $ 6 ,9 0 0 ,0 0 0 $ 2 ,1 0 0 ,0 0 0 On th e t r a lia th e fr o m U n ite d In d ia , by and and assay g o ld g o ld fo r sto ck m a te ly fo r e ig n of th e cou n try $ 2 0 5 ,0 0 0 ,0 0 0 o f a ll t r a n s a c tio n s . a t th is d u r in g w as th e ce n ts a pound, but d u r in g sp ot cotton s u b s e q u e n tly of th e June cotton b ecau se ro se as h ig h d e c lin e d to crop of un a s 1 2 .4 9 c lo s e th e m o n t h a t 1 2 .3 9 c e n t s a p o u n d , c o m p a r e d w i t h 1 1 .7 7 c e n t s A s a r e s u lt o f a r e d u c t io n in m a r k e t in g s th e a v e ra g e p r ic e o f h o g s m a d e a n a d v a n c e m o r e th a n s u ffic ie n t to can cel th e r e c e s s io n in M ay. The p r ic e of p art A us of th e m on th , but s u b s e q u e n tly recovered a la r g e p a r t o f t h is lo s s . R u s s ia . fr o m F o llo w in g th e d e c lin e s show n in th e tw o p r e v io u s m o n t h s , a s u b s t a n t ia l a d v a n c e o c c u r r e d in r a w s ilk p r ic e s d u r in g J u n e , th e s p o t q u o ta t io n r is in g 10 ce n ts to $ 1 .6 1 % to b e r e c e iv e d o ffic e s , b u t w a s m o r e accou n t fa v o r a b le w e a th e r, a n d e s tim a te s s te e r s c o n t in u e d t o m o v e s o m e w h a t lo w e r d u r in g th e fir s t fro m c o n tin u e d a n e t in c r e a s e o f $ 2 4 ,8 0 0 ,0 0 0 i n m ark to E n g la n d , r e c e iv e d P r iv a te s e v e r a l tim e s M e x ic o , fr o m fr o m $ 2 0 0 ,0 0 0 w as b e n e fic ia l. lo w e re d F ran ce, C h in a . N e w ly m in e d a n d s c r a p a t th e m in ts fr o m $ 1 3 ,6 0 0 ,0 0 0 $ 1 ,5 0 0 ,0 0 0 $ 6 0 0 ,0 0 0 f r o m a m ou n ted cam e $ 2 ,4 0 0 ,0 0 0 C o lo m b ia , C oa st, S ta te s $ 1 6 0 ,6 0 0 ,0 0 0 H o lla n d , fr o m W est and of w h ic h w ere a t th e e n d o f M a y . T o t a l im p o r ts o f g o ld a t N e w Y o r k a ffe c tin g th e m o n e $ 2 2 0 ,0 0 0 ,0 0 0 a d v e rs e w e a th e r c o n d itio n s , a lth o u g h r a in fa ll in th e e a s te rn S ta te s in th e la tt e r p a r t o f th e m o n th M o v e m e n t g o ld bank. th a n o ffs e t h e ld u n d e r e a r The in c r e a s e d by m on th a as m on eta ry a p p r o x i net r e s u lt a pound. h ig h e r R ayon d u r in g and d o m e s tic th e m o n th . w ool A m ong p r ic e s th e a ls o m oved p r in c ip a l m e ta ls , s c r a p s te e l a t P i t t s b u r g h d e c lin e d f u r t h e r t o $ 1 3 .2 5 a t o n , a le v e l $ 2 .5 0 b e lo w th e y e a r ’s h ig h F e b r u a r y , b u t la t e r r o s e t o $ 1 3 .5 0 . rea ch ed la s t T h e p r ic e o f tin a ls o s h o w e d fu r t h e r n e t lo s s d u r in g J u n e . c o n tin u e d at p r e v io u s ly cu rren t p o in t O th e r m e ta l p r ic e s le v e ls . 54 MONTHLY REVIEW, JULY 1, 1936 E m p loy m en t and P ayrolls B e tw e e n th e th e num ber fa c to r ie s m id d le of A lt h o u g h th e o f A p r il w ork ers in c r e a s e d r ic s , in d u c e d b y th e r is e in r a w fo r th e in c r e a s e s and e m p lo y e d in th e in fo u r th ea ch of m id d le N ew of c o n s e c u tiv e th e M ay Y ork past S ta te m on th . tw o m on th s m on th . ch an ge rose c o tto n p r ic e s d u r in g th e T h e g e n e r a t i o n o f e l e c t r i c p o w e r , wT i c h d o e s n o t h s u b s t a n t ia lly fu r th e r fr o m d u r in g M ay th e to June h a lf fir s t of in m ost th e years, m on th , but b it u m in o u s c o a l m in e s w e r e s o m e w h a t le s s a c t iv e t h a n in M ay. w e r e s m a ll, th e m o v e m e n t s w e r e c o n t r a r y t o th e u s u a l s e a sonal te n d e n cy and c o n s e q u e n tly th is b a n k ’s ber 1930. r a is in g th e F a ctory th e a d ju s t e d h ig h e s t num ber p a y r o lls p o in t in d e x s in c e o f w ork ers a ls o a d v a n c e d in u n s e a s o n a lly , a p p r o x im a te ly A u gu st th e 1931. b u ild in g 2 per cen t to In crea ses in th e m a te r ia l, m e ta l a n d m a c h in e r y , a n d c h e m ic a l g r o u p s w e r e o ffs e t o n ly in p a r t in d u s tr ie s . th e cou n try as a w h o le , p r iv a te e m p lo y m e n t in m a n u fa c t u r in g a n d n o n m a n u fa c t u r in g in d u s tr ie s c o v e r e d b y r e p o r t s to th e D e p a r t m e n t o f L a b o r in c r e a s e d f o r th e th ir d c o n s e c u tiv e m o n th in th e p e r io d b e tw e e n A p r il 15 a n d M a y 1 5 , b u t th e in c r e a s e w a s s m a lle r t h a n of th e tw o p r e c e d in g seasonal ten d en cy , w hat fu r th e r in m on th s. fa c to r y M ay C on tra ry r a is in g th e e ith e r th e u sual a d va n ced e m p lo y m e n t to in som e s e a s o n a lly a d ju s t e d in d e x 1 p e r c e n t to a le v e l a b o u t 5 p e r ce n t h ig h e r th a n a y e a r a g o ; th e im p r o v e m e n t w a s la r g e ly con cen tra ted th e d u r a b le g o o d s in d u s t r ie s , w h ic h a s a g r o u p g a in o f 2 p e r c e n t in th e n o n d u r a b le due p r im a r ily le a th e r v o lu m e o f in d u s tr ia l p r o d u c tio n , as m e a s u r e d of th e The F ed eral in d e x R eserve sto o d as c o m p a r e d w ith M a y 1935. S y ste m , at 101 per 1 00 in a b le g o o d s A p r il, 93 o f c a p a c ity , w e re 2 y 2 to grou p in grou p season al r e g is te r e d d ecreases C om p ared has show n w ith an a s lig h t in th e a year in c r e a s e th e n o n m a n u fa c tu r in g o f th e t e x t ile ago p e r c e n t h ig h e r th a n in 16 grou ps in e m p lo y m e n t in d u s tr ie s su rveyed by th e e m p lo y m e n t D ep a rtm en t of b u ild in g g a in w h ic h in th e s iz a b le g a in s . occu rred rep orted M a y th a n in A p r il. 15 in p r iv a te per cen t m ore con w ork ers in E m p lo y m e n t in a n th r a c ite c o a l m in v a r io u s s e r v ic e in d u s t r ie s a ls o rep orted E m p lo y m e n t in r e t a il t r a d e r e m a in e d p r a c t ic a lly u n c h a n g e d , w h ile e m p lo y m e n t in w h o le s a le t r a d e w hen a s s e m b lie s o p e r a t io n s o f th e in d e c lin e d rea ch ed M ay p r e c e d in g w ere th e 5 m on th ; P r o d u c tio n I n d u s t r ia l o u t p u t in th e u sual c u r ta ilm e n t e a r ly p art of s la c k e n in g in a u t o m o b ile of in g en era l d oes n o t a p p e a r to seasonal p r o d u c tio n occu rred th e th e m on th la tte r but w as p a rt, due rep orted to w e ll have June. to S om e in have s u s ta in e d th e w e ll as p r o d u c tio n in c lu d e d in th e r e c e iv e d by m a c h in e season al d e c lin e been s a le s o f c a r s . S te e l m ills a p p a r e n t ly e q u a le d o r e x c e e d e d le v e l a verage R e q u ir e m e n ts t io n , of ta in e d , and of and d u r in g ord ers p r ic e s a fte r J u ly d e c lin e s th e p r o d u c tio n r a ilw a y , v o lu m e th a t of in som e pron ou n ced June m ills a u to m o b ile d e c lin e d , as th e in d u s tr y fo r dem and fo r but cou rse booked in uses of w as June a in M ay. s te e l p r o d u c tio n con stru c w e ll m a in c o n s id e r a b le a n tic ip a tio n a r u le , b u t in c r e a s e d th is o u tp u t year it in s te a d , is cotton m ill th e h ig h ce n t b e lo w ra te of b itu m in o u s O u t p u t o f ir o n , le a d , a n d z in c , of e le c tr ic pow er B o a r d ’s i n d e x , r o s e in tool b u ild e r s fo llo w in g th e w h ic h is M ay, and show ed g a in in o n ly th e not ord ers a s m a ll p r e c e d in g m on th . (Adjusted for seasonal variations and usual year to year growth) 1935 1936 M ay Mar. Apr. M ay 47 54 52 63 59 68 48 72 71 81 56 78 71 85 61 82 Automobiles Passenger ca rs............................................... M otor trucks................................................. 51 78 66 107 69 102 66 101 Fuels Bituminous coal............................................ Anthracite coal.............................................. Petroleum, crude.......................................... Petroleum products...................................... Electric p ow er............................................... 72 82 68 65 72r 77 53 71 68 75 73 125 56 74 104 84 98 55 91 101 92 87 56 94 100 89 93 54 88 lO lp 72 78 87 81 86 89 112 87 83 83 84 90 81 81 45 53 74 60 49 64 72 80 58 83 70 96 Metals Textiles and Leather Products Cotton consum ption.................................... W ool consumption........................................ Silk mill a ctiv ity ....................................... R ayon deliveries*.......................................... of Foods and Tobacco Products Meat packing................................................. W heat flour.................................................... Refined sugar deliveries.............................. T obacco products.......................................... 89 77 72 69 76?) 80p 81p 73 p 78 p 84 Miscellaneous Newsprint paper............................................ Machine tools................................................ 59 7Op 97 h ig h e r rep orted fo llo w in g th e m a rk et fo r co tto n p Preliminary. * For quarter ended. B u ild in g fo r A c t i v i t y a t c o t t o n t e x t ile m ills a ls o s t r e n g t h e n in g in p r e v a ilin g m is c e lla n e o u s w as 1. o p e r a t io n s th e th e a v e ra g e o f A p r il, r e t a il th e cu rren t A p r il a n d season al p e a k ; per and c o a l d e c lin e d 6 p e r ce n t. as g r a d u a lly p e r c e n t b e lo w d e c lin e d s o m e w h a t. ch eck ed in d u r A p r il to M ay. p r in c ip a l show n 85 d u r in g p r o d u c tio n m on th , a n d w as 4 % and th e The and M arch , a n d M a y , a t 71 p e r cen t d e c lin e , L a b o r s h o w e d in c r e a s e d e m p lo y m e n t f r o m in g M ay. average T h e ra te o f show ed a ers as in M a y 1 9 3 5 . s tr u c tio n in 1 9 2 3 -2 5 w e r e a t th e h ig h e s t p o in t s in c e A p r i l 1 9 3 0 . t r ie s a r e e m p lo y in g p r a c t ic a lly th e s a m e n u m b e r o f w o r k 12 s lig h t ly in S te e l m ill o p e r a t io n s in o f n e a r ly 11 p e r c e n t w h ile th e n o n d u r a b le g o o d s in d u s in rose ce n t o f th e th e n u m b e r o f e m p lo y e e s , w h e r e a s goods in d u s t r ie s . A m ong by th e s e a s o n a lly a d ju s t e d in d e x o f th e B o a r d o f G o v e r n o r s a u t o m o b ile b y d e c r e a s e d e m p lo y m e n t in th e c lo t h in g , sh oe, a n d p a p e r F or The a d ju s t e d in d e x o f e m p lo y m e n t r o s e t o th e h ig h e s t le v e l s in c e O c t o a fa b A s la c k e n in g in s o m e t y p e s o f b u ild in g a c t iv it y d u r in g M a y r e s u lte d in a d e cre a s e o f 8 p e r c e n t in t o ta l a w a r d s o f b u ild in g cov ered and by th e e n g in e e r in g co n tra cts F . W . D odge in th e C o r p o r a tio n d e c lin e w a s c o n fin e d t o th e h e a v y e n g in e e r in g n o n r e s id e n tia l ty p es of b u ild in g , and 37 S ta te s rep orts. and r e s id e n t ia l The oth er con t r a c t s s h o w e d a f u r t h e r in c r e a s e o f 5 p e r ce n t, co n tr a r y to th e u su a l se a so n a l m o v e m e n t. T o t a l c o n tr a c ts in M a y FEDERAL RESERVE AGENT AT NEW YORK w e re a b o u t 7 0 p e r ce n t a b o v e th o se p la c e d in th e 55 PER CENT corre s p o n d in g m o n th o f 1 9 3 5 ; c o n tr a c ts f o r h e a v y e n g in e e r in g p r o je c t s w e r e m o r e th a n d o u b le th e v o lu m e o f a y e a r a g o , a n d r e s id e n t ia l b u ild in g c o n t r a c t s w e r e 5 6 p e r c e n t la r g e r th a n in M a y In 1935. th e S e co n d F e d e r a l R e s e r v e D is t r ic t th e d e c lin e in to ta l b u ild in g c o n s tr u c tio n fr o m A p r il to M a y w as som e w h a t m o re p r o n o u n c e d th a n in o th e r a rea s d u e p r in c ip a lly to a s h a r p e r r e d u c tio n in c o n tr a c ts f o r p u b lic w o r k s a n d u t ilit ie s . R e s id e n t ia l c o n t r a c t s in th is d is t r ic t , h o w e v e r , in c r e a s e d som ew h at m ore th a n in th e to ta l of th e 37 S ta te s. D a t a f o r th e fir s t h a lf o f J u n e in d ic a t e a fu r t h e r s lig h t r e d u c tio n in th e v o lu m e o f to ta l b u ild in g c o n tr a c ts in S ta te s. 37 D e c lin e s in th e c la s s ific a t io n s e m b r a c in g r e s id e n tia l a n d n o n r e s id e n tia l b u ild in g oth er th a n heavy e n g i n e e r in g w o r k w e r e la r g e ly o ffs e t b y a n in c r e a s e in a w a r d s Indexes of Sales in Three Major Types of Retail Trade (Adjusted for seasonal variation; 1929-31 average — IOO per cent) f o r p u b lic w o r k s a n d u t ilit y p r o je c t s . In d e x e s o f B u s in e s s A c t iv ity c e p tio n D u r i n g th e fir s t h a l f o f J u n e s o m e s la c k e n in g a p p e a r s o f tw o m o n th s in s a le s h a v e b e e n 1934, u rban a t a c o n s id e r a b ly d e p a r tm e n t sto re lo w e r le v e l r e la tiv e to to h a v e o c c u r r e d in th e u p w a r d m o v e m e n t in th e v o lu m e th e 1 9 2 9 -1 9 3 1 v o lu m e th a n th e o t h e r t y p e s o f r e t a il t r a d e o f d is tr ib u tio n o f g o o d s th a t w a s e v id e n t in M a y . s in c e N ew Y ork m a in e d M e tr o p o lita n w e ll above area a year d ep a rtm en t ago, but sto re appear I n th e s a le s to re have ad th rou g h ou t of th e C om m erce U n ite d on r e t a il S ta te s tra d e in d ic a te in th a t 36 sto re of 1933. s a le s in Th^ M ay a d ju s t e d 1936 w as s a le s 1935 a year ago, ad verse w arm e ffe cts w e r e w ea th er in fe lt som e fr o m p a rts d rou gh t of th e and M ay L ittle ch a n g e fr o m th e M a y Primary Distribution Car loadings, merchandise and m isc........ Car loadings, oth er....................................... th e m e r c h a n d is e and m is c e lla n e o u s or b u lk fr e ig h t grou ps. In crea ses p r e d o m in a te d in M ay u r e s o f g e n e r a l b u s in e s s a c t iv it y g o o d s , th e m ost p r o n o u n c e d tra d e. T h e a c c o m p a n y in g th ree im p o r ta n t lin e s of am ong v a r io u s d ia g r a m r e t a il m eas a n d th e d is tr ib u tio n g a in s t a k in g p la c e sh ow s th e t r a d e — s a le s in cou rse of of r e t a il of gen eral m e r c h a n d is e in s m a ll t o w n s a n d r u r a l a r e a s , d e p a r t m e n t store s a le s in u rban lo c a lit ie s , and v a r ie ty sto re s a le s — e a c h a d ju s t e d f o r th e u s u a l s e a s o n a l v a r ia t io n s , a n d o n a 1 9 2 9 -1 9 3 1 b a s e . S in c e 1 9 2 9 c o n s id e r a b le d iffe r e n c e s h a v e occu rred m ov em en ts in th e of th e th re e typ es b u t in e a c h ca s e a n u n s e a s o n a l in c r e a s e in th e in d e x u p to th e h ig h e s t p o in t in M ay of tra d e b rou gh t several years. The i n d e x o f s a le s o f g e n e r a l m e r c h a n d is e i n s m a ll t o w n s a n d r u r a l a re a s, w h ic h ch ases of goods a m p litu d e of by r e fle c ts t o fa rm e rs, m ovem ent th a n 1 92 9 p e a k to th e 1 9 3 3 lo w a c o n s id e r a b le has th e show n oth er a e x ten t p u r m u ch tw o; in p r o g r e s s w h ic h p o in t th ere w a s a d r o p h a s r e s u lte d in th e M ay 65 59 52 74r 66 67 52 71 66 72 59 72 72 69 60 77 74 64 59 84 78 75 61 81 95 65 85 87 76r 71r 61 85 83r 66 81p 88 82 76 59 88 90 68 75p 65 43r 66 45r 66 41r 65 v 4 2p 65 72 71 70 New life insurance sales.............................. Factory employment, United States........ Business failures............................................ Building contracts........................................ New corporations formed in N. Y . State. 41 54 82 43 25 55 48 49 85 35 41 54 43 49 86 33 45 53 40 53 87 p 35 43p 55 General price level*...................................... Composite index of w ages*........................ Cost of livin g *............................................... 143 186 140 151 189 141 150 188 141 150p 189p 142 Distribution to Consumer Department store sales, U. S ..................... Department store sales, 2nd D ist............. Chain grocery sales...................................... Other chain store sales................................ Mail order house sales................................. Advertising..................................................... New passenger car registrations............... Gasoline consum ption.................................. General Business Acitivity Bank debits, outside New Y ork C it y .. . . Bank debits, New York C ityr................... Velocity of demand deposits, outside New York C it y ................................................... Velocity of demand deposits, New York of p Preliminary. th e 66 F o r e ig n recovery o f 7 0 p e r c e n t o f t h e lo s s , a n d t h e M a y i n d e x r e a c h e d t h e h ig h e s t p o in t s in c e D e c e m b e r 1 9 2 9 . Apr. w id e r fr o m p e r c e n t , b u t s in c e t h a t t im e a m a r k e d u p w a r d m o v e m e n t has been Mar. 58 60 47 69 le v e l o c c u r r e d in th e m o v e m e n t o f r a ilr o a d fr e ig h t , e ith e r in of th e cou n try . W h o le s a le tr a d e g a v e e v id e n c e o f b e in g w e ll m a in ta in e d d u r in g th e fir s t h a lf o f J u n e . in d e x about 1936 c o n tin u e d to r u n h ig h e r th a n in th e c o r r e s p o n d in g p e r io d u n u s u a lly at (Adjusted for seasonal variations, for usual year to year growth, and where necessary for price changes) citie s w h ile sum m er sa m e le v e l as in A u g u s t 1 9 3 1 . v a n c e d le s s t h a n s e a s o n a lly o v e r M a y , a n d r e p o r t s t o th e D ep a rtm en t th e d e p a rtm en t T h e d e c lin e in v a r ie t y in c r e a s e d 000 , 0 0 0 , * 1913 average = 100. T ra d e M e r c h a n d is e M ay r Revised. w h ile e x p o rts fr o m u n s e a s o n a lly im p o r ts th e and show ed U n ite d w ere th e S ta te s v a lu e d u s u a l s lig h t d u r in g at $ 2 0 1 ,- decrease s t o r e s a le s w a s m u c h le s s s e v e r e , a m o u n t in g t o 3 5 p e r c e n t, and a n d o f th is o v e r t w o -t h ir d s h a s b e e n r e c o v e r e d . 0 0 0 ,0 0 0 e x p o r t b a la n c e w a s th e fir s t t o o c c u r s in c e J a n u T he con w ere v a lu e d at $ 1 9 1 ,0 0 0 ,0 0 0 . The r e s u lt in g $ 1 0 ,- t r a c t io n in d e p a r t m e n t s t o r e s a le s in u r b a n lo c a lit ie s w a s a r y , a n d c o m p a r e d w i t h a n e x c e s s o f i m p o r t s o f $ 5 ,0 0 0 ,0 0 0 g rea ter in th a n in v a r ie ty s to re s a le s but le s s th a n in th e M ay o f la s t y e a r . E x p orts show ed a g a in g e n e r a l m e r c h a n d is e s to r e s, a n d n o t m u c h m o r e th a n h a lf cen t a n d o f th e lo s s h a s b e e n r e g a i n e d ; c o n s e q u e n t ly , w it h th e e x - c o n t in u in g th e in c r e a s e s o f th e p a s t t w o y e a r s . im p o r ts a g a in of 12 per cen t of over M ay 22 per 1935, MONTHLY REVIEW, JULY 1, 1936 56 D ep a rtm en t T h e v a lu e o f a ll m a n u fa c t u r e d p r o d u c t s e x p o r t e d d u r in g M ay r e m a in e d p r e c e d in g m on th , at about but th e sam e a ccou n ted fo r le v e l as sto re s to ck s of th e r e t a il v a lu a t io n , w e r e s lig h t ly m ore th e s e c o n d c o n s e c u tiv e m o n th . in c o n s id e r a b ly t h a n h a lf o f th e in c r e a s e o v e r a y e a r a g o in t o t a l e x p o r ts . th e E x p orts fin is h e d p ro d u cts in a m a jo r ity of ca ses sto re s w as on hand, la s t y e a r at fo r T h e ra te o f c o lle c tio n s in 1935. of d ep a rtm en t m e r c h a n d is e h ig h e r th a n s lig h t ly lo w e r th a n in M ay s h o w e d la r g e r g a in s o v e r 1 9 3 5 th a n in A p r i l ; th e in c r e a s e over a year ago in num ber of m o to r tru ck s ex p o rte d c e n t, a lth o u g h th e a c c o m p a n y in g in c r e a s e s in v a lu e w e r e not as la rg e , a p p a r e n tly due to th e s a le abroad la r g e r p r o p o r t io n o f lo w e r p r ic e d c a r s th is y e a r . of a Locality N o ta b le in c r e a s e s o v e r a y e a r a g o lik e w is e o c c u r r e d in e x p o r t s o f a g r ic u ltu r a l, in d u s tr ia l and m a n u fa c t u r e s , a n d r e fin e d p u rch a ses in o f A m e r ic a n A p r il, co n tra ry to e le c tr ic a l p e tr o le u m cotton th e m a c h in e r y , p ro d u cts. w ere s lig h t ly la r g e r th a n u su a l season al te n d e n cy , and s h o w e d in c r e a s e s o v e r a y e a r a g o o f 2 2 p e r c e n t in v o lu m e and 18 per A m ong c e n t in th e v a lu e . in d iv id u a l a g o w e r e n o t as u n ifo r m im p o r ts , r e c e ip t s p ro d u cts, le u m , 55 per to an q u a n tity num ber a ls o in On s e a s o n a lly R e c e ip ts of in c r e a s e in over lik e w is e sugar cru d e a year ra w year cru d e hand, in m a jo r o f w h ic h fr o m a g a in th e show ed R e la t iv e ly occu r in of due in c r e a s e s w ood a n d p a p e r p r o d u c ts , b e v e ra g e s, w o o l, a n d c o tto n . W h o le s a le D u r in g fir m s in lo w e r The S to re T ra d e to ta l th a n of s a le s la s t y e a r , d e c lin e s th e in th e and sto re s in th e M e tr o p o lita n area of N ew of s ilk S hoe p e r io d th a n year ago, but show ed u s u a l se a s o n a l e x p a n s io n T ota l M ay s a le s of som ew hat le s s th a n th e over M ay. th e grocery, fir s t in dru g, goods w ere d ep a rtm en t a sto re s con cern s a g a in rep orted a y e a r a g o , a lth o u g h th e s h o p p in g M ay in th e d a ily in cr e a s e ra te s in c e of s a le s M arch w as 1934. and 13 per The s to r e s in a ll lo c a lit ie s r e c o r d e d la s t, th e ce n t, in c r e a s e th e r e p o r tin g r e g is te r in g C it y , N o r t h e r n N ew r e g is te r e d th e la r g e s t a d v a n c e s in 2 yea rs o r m ore. w as D is tr ic t, a n d rep orted A n a ls o N ew th e th e W estch ester Y ork d a ily and to d ep a rtm en t year c o m p a r is o n R o ch e ste r, la rg e r m on th s. sto re s and of th a n s to re s th e a lm o s t B r id g e p o r t a d va n ces S a le s in m ade in in a stores th e m ost N ia g a r a Y ork year B u ffa lo , c o n s id e r a b ly im m e d ia te ly F a lls p r e c e d in g and C en tra l N e w Y o r k S ta te , s h o w n s e p a r a t e ly f o r th e fir s t tim e , w e r e a ls o s u b s t a n t ia lly la r g e r th a n a year ago. le a d in g a p p a r e l s to r e s in th is d is t r ic t w e r e S a le s of th e 1 5 .3 p e r c e n t h ig h e r th a n la s t y e a r , a la r g e r in c r e a s e t h a n con a year h ig h e r th a n la s t yea r, a lo w e r v o lu m e of s a le s d e c r e a s e w a s n o t a s la r g e g o o d s a n d je w e lr y th e la r g e s t g a in s in c e S ep tem b er th e la r g e s t a d v a n c e s in c e Per cent of accounts outstanding April 30 collected in M ay Net Stock end of month 1935 1936 9 4.0 35.7 39.7 67.1 38.2 29.4 47.3 58.6 4 9.6 21.8 87.9 34.4 40.9 64.4 4 3.9 38.0 46.4 59.6 61.6 } 21.7 56.2 55.4 S ta m fo rd and show ed paper th e and Comm odity s a le s in fa v o r a b le y ea r; and Percentage change M ay 1936 compared with M ay 1935 s a le s S ta te , s t o r e s ; t h e d a ily r a t e o f s a le s in t h e S o u t h e r n N e w S ta te yea r. m on th s, c o m p a r is o n s w ith e x c e p t i o n a l l y la r g e i n c r e a s e i n s a le s by of a la r g e s t C a p it a l D is tr ic t, a verage num ber d ep a rtm en t s u b s t a n t ia l g a in s in J ersey , N orth ern R iv e r V a lle y over record ed 1934. o v e r la s t y e a r , a n d s e v e r a l lo c a lit ie s , in c lu d in g N e w Y o r k H udson in con cern s T h e cotton 1 9 3 5 , a n d th e la tte r r e c o r d in g year d ecrease w h o le s a le 1 p e r cen t fir m s , h o w e v e r , s h o w e d s a le s w e ll a b o v e la s t y e a r ’s le v e l, th e fo r m e r th is r e p o r tin g H a r d w a r e s a le s a n d y a r d a g e s a le s a ft e r m a k in g a llo w a n c e f o r d iffe r e n c e s in th e n u m b e r o f b e tw e e n th e a p p r o x im a te ly s ta t io n e r y , in th is d is t r ic t w e r e 9 p e r c e n t h ig h e r t h a n la s t y e a r , a n d days 4 5.2 s u b s t a n t ia lly as in th e p r e v io u s m o n th . r e p o r tin g 46.9 4 6.8 b u t th e in c r e a s e s r e p o r t e d w e r e n o t a s la r g e a s in A p r i l. Y o r k w e r e 9 .1 p e r c e n t h i g h e r t h a n i n t h e c o r r e s p o n d i n g a 4 7.3 + 12.0 d ia m o n d s a le s a g o in 4 to 5 m o n th s . d ep a rtm en t of th is d is t r ic t a v e r a g e d c e r n s m a d e th e le a s t fa v o r a b le D u r i n g t h e fir s t h a l f o f J u n e , t o t a l s a le s o f t h e r e p o r t in g + 0 .7 + 15.3 T ra d e M ay m e n ’s c lo t h in g la r g e s t s a le s D e p a rtm e n t + 9 .0 Apparel stores............................................ an s u b s t a n t ia l n ic k e l, 50.4 48.1 47.7 39.3 4 1 .8 40.6 36.6 — + — — + + — and w as la r g e im p o r ts 1936 50.5 4 8 .4 46.6 3 8.6 4 3.7 3 9.8 3 5.3 All department stores.............................. P h ilip p in e s . a 1935 + 8 .2 + 1 4 .6 + 6 .3 + 7 .0 + 1 1 .1 + 6 .9 + 1 3 .2 + 7 .2 + 4 .8 + 1 1 .2 + 1 3 .3 + 10.3 + 3 3 .0 + 1 5 .1 of show ed q u a n tity Stock on hand end of month 0 .1 9 .6 5 .8 4 .8 5 .9 1 .8 4 .0 New Y o rk ............................................................ Buffalo................................................................. R ochester............................................................. Syracuse............................................................... Northern New Jersey...................................... Bridgeport........................................................... Elsewhere............................................................ Northern New York S tate......................... Southern New York S tate.......................... Central New York State............................. Hudson River Valley D istrict................... Canital D istrict.......................................... Westchester and Stam ford......................... Niagara F alls................................................. p etro r e c e ip t s A p r il, p art im p o r ts in a n im a l fo o d s ilk , oth er th a n ago. to of th e ru bber c o n tin u e d a occu rred and o f 22 p e r c e n t in v a lu e , th e in c r e a s e a n d v a lu e v e g e ta b le le s s over a year ago ce n t in of im p o r ts fe r t iliz e r s . w h ile in c r e a s e a and and su ga r, of over in M a y as in m o s t r e c e n t m o n th s . S u b s t a n t ia l d e c r e a s e s in th e in c r e a s e s Net sales w ood F o r e ig n Per cent of accounts outstanding April 30 collected in M ay Percentage change M ay 1936 compared jwith M ay 1935 a m o u n te d to 7 3 p e r c e n t a n d in p a s s e n g e r ca r s to 31 p e r in A p r il. Groceries....................... M en’s clothing............. Cotton go o d s................ R ayon and silk g o o d s. S hoes.............................. Drugs............................. Hardware...................... Stationery..................... P ap er............................. D iam onds..................... Jew elry.......................... W eighted average. + 2 .4 — 20.4 + 2 1 .7 + 1 8 .6 * — 10.8 + 5 .5 + 1 3 .4 + 6 .6 — 0 .2 — 10.0 + 4 6 .3 — 0 .8 — 9 .0 + 2 6 .1 + 1 7 .3 — 6 .4 + 8 5 .4 Q uantity figu reported by the N res ational F ederation of T extiles, Incorporated, not includedinw tedaverage for total w olesaletrade. eigh h FEDERAL RESERVE BANK OF NEW YORK M O NTH LY REVIEW , JU LY 1, 1936 B u s in e s s C o n d i t i o n s in t h e U n it e d S ta t e s (Summarized by the Board o f Governors o f the Federal Reserve System) OLUME o f industrial production, which had increased sharply in April, was maintained in May, and there was an increase in distribution o f commodities to consumers. V P r o d u c t io n Index Number of Production of Manufactures and Minerals Combined, Adjusted for Seasonal Variation (1923-25 average = 100 per cent) Index Numbers of Factory Employment and Pay rolls, Without Adjustment for Seasonal Varia tion (1923-25 average = 1 0 0 per cent) PER CENT / --------- and E m ploym ent The B oard’s seasonally adjusted index o f industrial production in May was 101 per cent o f the 1923-1925 average, as compared with 100 per cent in April. Production o f durable manufactures increased further, reflecting larger output o f steel and lumber, partly offset in the total by a reduction in the output of automobiles from the high level o f April. A t steel mills the rate o f activity in May was higher than at any other time since the spring o f 1930. This level has been maintained in June, reflecting in part some accumulation o f steel by fabricators in advance o f the effective date of recently announced price increases. Declines in production were reported for many nondurable manu factures; at woolen mills, however, activity increased. Output o f bituminous coal declined from April to May, while output o f crude petroleum continued in large volume. Factory employment increased slightly between the middle o f April and the middle o f May, contrary to the usual seasonal tendency. Increases were reported at plants producing iron and steel products, machinery, and most other durable manufactures. Changes in employment in industries producing non durable manufactures were largely o f a seasonal nature. Factory payrolls were somewhat larger in the middle o f May than a month earlier. Total value o f construction contracts awarded, according to figures o f the F. W. Dodge Corporation, declined slightly from April to May. Awards for residential building continued to increase and in May, as in other months this year, were substantially larger than a year ago when residential building was first beginning to increase from the extreme low level o f the depression. D is t r ib u t io n >■ --) ) ) V s. F OODS OTHER cCOMMODITIES—/f r j y WLXJu* \ r ) X /'V i \f w V PRODUCTS ) | 1929 1930 1931 1932 1933 1934 1935 1936 Group Price Indexes of the Bureau of Labor Statistics (1926 average = 100 per cent) Department store sales, which usually decline at this season, increased from April to May and there was also a rise in sales at variety stores and mail order houses. Freight car loadings increased by slightly more than the usual seasonal amount. Co m m o d it y P B (Latest figures are for June 17) r ic e s Wholesale prices o f commodities, which had declined from the middle o f April to the middle o f May, have advanced somewhat sinee that time and in the week ended June 20 were at 78.7 per cent o f the 1926 average, according to the index o f the Bureau o f Labor Statistics. In recent weeks prices o f livestock and livestock products, grains and flour, and textile raw materials and finished products have advanced. For many steel products price increases have been announced to take effect early in the third quarter. ank C r e d it Excess reserves o f member banks, after a slow increase in May and the early part o f June, declined by $900,000,000 in the week ended June 17. The reduction in excess reserves was due principally to an increase in the deposits maintained at the Reserve Banks by the Treasury, which received large payments for new securities issued, as well as quarterly tax installments. A t that time the Treasury began to distribute checks and adjusted service bonds to veterans and there was an increase in the demand for currency in connection with the cashing o f these bonds and checks. United States Government obligations held by reporting member banks in leading cities, which had increased somewhat in May and early June, showed a further sharp increase in the week ended June 17 in connection with the new issue o f Government securities. Bank loans also increased.
