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M O N T H L Y REVIEW B U S IN E S S F E D E R A L R E S E R V E C O N B A N K O F D I T I O N S I N T H E S I X T H E R A L R E S E R V E D I S T R I C T A T L A N T A In October retail trade in the Sixth District increased much less than seasonally, and there was a decline in whole sale trade, contrary to the usual seasonal trend. Business failures increased slightly. Building activity, reflected in value of building permits issued at reporting cities and in contracts awarded in the District, remained at about the September level. Cotton consumption declined, but pro duction of pig iron in Alabama increased. T rade October sales by 49 reporting retail firms in the Sixth District increased 10 per cent over Septem ber and were 3.5 per cent larger than a year ago. Daily average sales by 28 firms which have reported over a long period of years increased considerably less than seasonally from September to October, and the seasonally adjusted index declined from 127.8 per cent of the 1923-1925 average for September to 109.6 per cent for October, a decrease of nearly 15 per cent. Total sales by the 49 reporting firms during the first ten months of 1937 were 8.3 per cent larger than in that part of 1936. Inventories increased 4.0 per cent from September to October and were 15.0 per cent larger in dollar value than a year ago Volume of sales reported by 70 wholesale firms declined 8.7 per cent from September to October, and was 4.6 per cent below October, 1936. The cumulated total for the January-October period was, however, 15.5 per cent larger than for that part of last year. This is the third time in sixteen years to record a decline in wholesale trade from September to October. Business failures increased slightly in number and liabil ities in October, and were also larger than in October, 1936. B anking There have recently been further increases in loans, and decreases in holdings of investment securities, at weekly reporting member banks in leading C O N D IT IO N O F 22 M EM BER BAN KS IN S E L E C T E D C IT IE S (In Thousands oi D o llars) November 17 C h an g e From : 1937 Oct. 13,1937 Nov. 18,1936 Lo an s and Investm ents............................. $554,287 + 1,476 — 33,076 Lo an s— T o ta l................................................ . .. 288,482 +12,282 + 32,113 Com m ercial, in dustrial and ag ricu ltu ra l loan s : * O n S e c u ritie s........................................... . 12,303 + 751 * O therw ise secu red a n d u nsecured . . . . 142,673 + 14,814 O pen m arket p a p e r............................... . . . 4,192 — 251 — 1,176 Lo an s to brokers a n d dea le rs in se cu ritie s......................................... 6,738 % — 877 + 518 O ther loan s for pu rch asin g * or carryin g se cu ritie s....................... . . . 15,271 — 196 R eal estate lo a n s ....................................... 26,862 — 193 + 2,281 Loans to b a n k s........................................... 2,347 — 1,568 + 1,210 Other Lo an s : * On secu rities........................................... 25,081 — 1,428 * O therw ise secured and u n se cu re d . . . . 53,015 + 1,232 Investm ents— T o ta l................................... . . . 265,805 — 10,806 — 65,189 U. S. direct ob lig atio n s....................... . 153,851 — 15,043 — 51,560 O bligations guaranteed by U. S . . .. .. 33,753 + 394 — 5,321 O ther se cu rities..................................... . , . 78,201 + 3,843 — 8,308 Reserve w ith F . R. B a n k ........................... , 102,626 — 4,876 + 19,081 C a s h in v a u lt ............................................... , 11,378 — 1,280 + 316 B a lan ce s w ith domestic b a n k s ............ 99,759 — 14,383 — 23,598 323,271 Dem and deposits— a d ju ste d .................. — 8,341 +13,693 Time d ep osits.............................................. . 185,615 — 511 + 8,241 U. S. Governm ent dep osits..................... 10,320 — 4,918 — 25,656 Deposits of domestic c a n k s ................... 188,835 — 8,191 — 39,086 2,097 B orrow ings : From F . R. B a n k ............ + 2,097 + 1,398 From o thers..................... + 311 311 'C o m p a r a b le fig u re s not a v a ila b le . F E D N ovem ber 30, 1937 cities of the District. On November 17 total loans were larger than on any other Wednesday since May, 1933, and total holdings of securities were smaller than on any other report date in more than two years. Loans for commercial, industrial and agricultural purposes increased 15.5 millions of dollars between October 13 and November 17, and were 23.4 millions greater than at mid-August. “Other” loans declined slightly since October 13, but on November 17 were 7.1 millions greater than they were three months earlier. Loans to banks, real estate loans, loans to brokers and dealers in securities, and loans to customers for pur chasing or carrying securities have recently declined. Hold ings of investment securities declined further by 10.8 mil lions of dollars between October 13 and November 17, and were 65.2 millions less than a year ago. In the five weeks ended November 17, a decline of 15 millions in holdings of United States direct obligations was in part offset by a small increase in obligations guaranteed by the United States, and an increase of 3.8 millions in other securities. Compared with a year ago, by far the larger part of the decrease in total investment holdings was in direct obliga tions of the United States, which declined 51.6 millions of dollars. Demand deposits-adjusted on November 17 were smaller than on any Wednesday since early last December, but were 13.7 millions larger than on November 18 last year. These deposits increased about 30 millions of dollars between mid-November and mid-December, 1936. Time deposits on November 17 were slightly below the level one and two months earlier, but were about 8.2 millions greater than a year ago. Deposits of other banks rose about 27 millions between September 1 and October 13, but have since de clined by about 8 millions. At 188.8 millions on November 17 they compared with the year’s low of 166.0 millions on July 28 and the year’s high of 241 millions on February 10. At the Federal Reserve Bank of Atlanta discounts have recently increased, and on November 17 were the largest reported on any Wednesday since January 31, 1934. Hold ings of United States securities have also increased, and on November 17 were 12.7 millions greater than a year earlier. Member bank reserve deposits declined about 12 millions in the week ending October 20, but increased in the following month by 5 millions. On November 17 mem ber bank reserves were 27 millions greater than a year earlier. Estimates based on latest available figures indicate F E D E R A L R E S E R V E BAN K O F ATLAN TA (In Thousands oi D o llars) November 17 C h a n g e From : 1937 O ct.13,1937 Nov.18,1936 $ 4,114 Bills D iscounted....................................... Bills Bought in O pen M arket............... 99 134 In du strial A d v a n ce s............................... 111,931 United States S e cu ritie s......................... 116,278 Total B ills and Secu ritie s................. 240,922 Total R e se rv e s........................................... 169,682 Member Bank R eserve A ccou nt.......... 4,497 U. S. Treasu rer G e n e ra l A cco u n t____ F . R. Note C ircu la tio n ............................. . . . . 164,645 + 2,765 + 1 — 22 + 940 + 3,684 — 18,171 — 6,983 + 944 — 4,320 + 4,021 — 9 — 364 + 12,743 + 16,391 — 5,584 + 27,084 + 3,012 — 22,252 B u s in e s s 2 C o n d it io n s in t h e D E B IT S T O IN D IV ID U A L A C C O U N T S ( la Th ou sand s oi D o lla rs) O ctober 2937 Septem ber 1937 A LA B A M A Birm ingham ....................... 3,718 D o th an ................................................ M obile................................. M ontgom ery..................... F L O R ID A Ja ckso n ville ....................... ............. 69,782 M i a m i .. .. ........................... ............... 30,644 P e n sa co la ........................... T a m p a ................................. ............. 26,038 G E O R G IA 5,649 A lb a n y ............................................... A tla n ta ............................... .............. 184,165 A u g u sta ............................. .............. 19,054 .............. 2,625 B ru n sw ick ................. C o lu m b u s........................... ............. 15,484 Elb erto n ............................. 17,402 M a c o n ................................ ............. N ew n a n ............................. . S a v a n n a h ........................... ............. 32,898 $ 88,315 4,064 42,567 23,468 $ 84,135 4,460 34,543 28,705 67,260 27,618 9,016 25,085 66,515 31,989 9,579 26,092 4,807 170,114 18,269 3,032 15,600 1,229 16,124 1,947 34,804 4,293 5,139 182,279 22,087 2,326 14,609 1,443 19,045 2,379 34,710 3,960 249,377 263,437 5,436 25,959 11,031 8,463 4,939 44,204 12,065 12,682 41,451 29,669 81,027 45,828 27,543 86,072 $1,010,025 $1,070,765 L O U IS IA N A N ew O r le a n s .................................... 259,965 M IS S IS S IP P I H attiesb u rg ............. ............. 4,916 Ja ckso n ............................... M e rid ia n ........................... .. V ic k sb u rg ........... TEN N ESSEE C h a tta n o o g a .................... K n o x v ille ........................... ............... 29,508 N a sh v ille ........................... T O T A L 26 C it ie s ........... .........$1,070,812 October 1936 that total member bank reserve deposits at the Federal Reserve Bank of Atlanta on November 17, which amounted to $169,682,000, were about 21.2 millions, or 14.3 per cent, greater than legal requirements. Daily average figures for the last half of October indicated an excess of 18.7 millions, or 12.7 per cent, over legally required reserves. A griculture A record cotton crop of 18,243,000 bales was indicated in the November estimate by the United States Department of Agriculture. Estimates for the six states of this District increased by an average of 6.4 per cent over those a month earlier, and show an increase of 1,949,000 bales over the 1936 crop in these states. The estimates for the six states combined, and those for Missis sippi and Tennessee, are the largest in records available back to 1903, and the estimate for Louisiana is the largest since 1904. Estimates by states are compared in the table. C O TT O N PR O D U C TIO N — B a le s 1937 Estim ates Percent 1936 Pro- Percent Nov. 1 O ct. 1 C ha n g e duction C ha n g e A la b a m a ........................................... 1,520,000 F lo r id a ............................................... 41,000 G e o rg ia ............................................. 1,470,000 L o u is ia n a ......................................... 1,080,000 M ississip p i....................................... 2,575,000 T e n n e sse e ......................................... 630,000 S ix S ta te s..................................... 7,316,000 1,425,000 40,000 1,430,000 1,000,000 2,400,000 580,000 6,875,000 + + + + + + + 6.7 2.5 2.8 8.0 7.3 8.6 6.4 1,145,000 31,000 1,086,000 761,000 1,911,000 433,000 5,367,000 + + + + + + + 32.8 32.3 35.4 41.9 34.7 45.5 36.3 Spot cotton prices on the ten designated markets have fluctuated in recent weeks between a high of 8.29 cents per pound on October 21 and a low of 7.65 cents on November 4. On November 18 the ten-market average was 7.71 cents. September receipts from the sale of principal farm products, with Government payments added, increased 85.1 per cent over August, but were 6.5 per cent less than a year earlier. In September last year receipts more than doubled those in August. The January-September total this year was, however, 25.1 per cent larger than for that part of 1936. S ix t h F ed er a l R eser v e D is t r ic t November estimates of corn, peanuts, pecans, tobacco, potatoes, apples and pears, and of sugar cane in Louisiana, increased slightly over those for October, but the estimates of sweet potatoes declined. The peach crop was smaller than in 1936, except in Tennessee, and the estimates indi cate smaller production of peanuts and pears, and of grape^ fruit in Florida, but most other crops increased substan tially. In d u stry Employment and payrolls at 6,315 firms in the six states of this District increased 0.8 per cent and 0.6 per cent, respectively, from August to September. Number of workers was 5.6 per cent, and the amount of a week’s payroll was 18.9 per cent, larger than in September last year, and both were well above September of other recent years. Following sharp declines from August to September, the value of building permits issued at twenty reporting cities and of contracts awarded in the District as a whole continued in October at about the September level. Building permits increased over September by only six-hundredths of one per cent and were 12.0 per cent less than in October a year ago, and the January-October total is only one-half of one per cent larger than for that period last year. It was, however, the largest for the ten months period since 1929. Total value of contracts awarded in October declined 1.3 per cent from September and was 29.1 per cent less than a year earlier. The decline from September was due to a reduc tion of 27.3 per cent in residential awards, as other con tracts increased 18.9 per cent. Residential contracts in October were 34.4 per cent, and other contracts 26.2 per cent, less than in October, 1936. Residential contracts in the January-October period were 10.3 per cent larger than in that part of last year, and October is the third month in three years to record a decrease compared with the corre sponding month a year earlier. Total contracts increased in October over September in Alabama and Louisiana, and over October, 1936, in Louisiana and Tennessee. Press re ports indicate that retail lumber yards, except for some scattered exceptions, are buying only sparingly, and rail roads and industrials are placing few orders for lumber. Weekly statements of the Southern Pine Association for October show that production averaged 11.7 per cent, ship ments 15.6 per cent, and orders 23.6 per cent, less than in the corresponding weeks last year. Daily average consumption of cotton in this District de clined 13 per cent from September to October and was smaller than in any month since May, 1936. Operations at cotton seed oil mills in the District declined slightly in October but continued well above that month a year ago. Coal production in Alabama and Tennessee was somewhat larger in October than in September. October production was larger than a year ago by 12.2 per cent in Alabama, but smaller by 3.6 per cent in Tennessee. After declining in August and September, daily average production of pig iron in Alabama increased in October when it was 44.7 per cent greater than a year ago and the largest, except for July, since 1930. Electric power production, on a daily average basis, increased 4.5 per cent from August to Sep tember, was 4.4 per cent larger than a year earlier, and the nine months total was 7.2 per cent greater than in that part of 1936. Production by use of water power increased, and that by use of fuels declined, in September. B u s in e s s C o n d it io n s S IX T H D IS T R IC T B U SIN E SS S T A T IS T IC S STO CKS SA LES Jan.-Oct. O ct. 1937 Incl. Com pared Com pared Oct. 1937 Com pared W ith W ith W ith : Y e a r Ago Oct. 1936 ____________________________ Sept. 1937 Oct. 1936 in t h e + 9.4 + 12.5 + 11.9 + 0.8 +3.9 +3.1 — 12.0 — 7.4 +12.1 + 3.6 + 3.5 27.2 35.4 33.1 + 11.1 28.3 32.6 32.0 30.7 + 18.4 + 14.8 + 15.0 + 8.3 71.2 37.5 45.8 41.0 + 7.2 — 0:2 + 9.4 + 10.0 +21.9 + 6.5 + 51.0 + 13.1 + 15.5 + 67.7 + 13.3 64. i 48.8 +20.2 (000 Omitted) Sept. 1937 Oct. 1937 C O M M ER C IA L F A IL U R E S — D IS T R IC T Number (A c tu a l)................... L ia b ilitie s ................................. $ Oct. 1936 Jan.-O ct. Incl. 1937 1936 24 147 301 2,793 246 3,562 35 263 33 256 C O N T R A C T S A W A R D ED — D IS T R IC T ...................................$ 14,820 R e sid e n tial............................... 4,754 A ll O th e rs................................. 10,066 A la b a m a ................................... 1,142 F lo rid a ....................................... 4,849 G e o rg ia ..................................... 2,466 L o u is ia n a ................................... 4,657 M ississip p i............................... 1,739 Te n n e sse e ................................. 2,619 $ 15,008 6,541 8,467 1,063 5,634 2,516 3,943 2,027 2,619 $ 20,896 7,248 13,648 3,825 5,908 4,737 4,205 3,940 2,145 $201,762 65,860 135,902 24,140 76,136 25,660 55,793 23,558 31,557 $198,850 59,689 139,161 36,878 60,679 31,010 30,571 32,158 56,548 5,143 304 198 452 217 456 3,516 5,140 356 313 513 119 422 3,416 5,844 204 147 417 863 393 3,820 $ 56,228 4,120 3,109 4,531 4,127 4,095 36,247 $ 55,972 3,787 1,872 4,383 7,420 3,917 34,592 238 221 165 2,168 1,549 p e r m it s — 20 C IT IE S ................................. $ A tla n ta ....................................... Birm ingham ............... ........... Ja ck so n v ille ............................. N a sh v ille ................................... New O rle a n s ........................... 15 Other C it ie s ......................... b u il d in g P IG IRO N P R O D U C TIO N — Tons A la b a m a ................................... 1,160 485 1,145 470 $ 1,034 488 10,384 4,343 $ 9,513 4,067 (000 Omitted) Oct. 1937 Sept. 1937 A u g. 1 to O ct. 31 Incl. 1937 1936 Oct. 1936 C O TT O N CO N SU M PTIO N — B a le s A la b a m a ................................... G e o rg ia ..................................... Te n n e sse e ................................. Total 3 S ta te s....................... 55 105 14 175 60 116 17 193 71 127 15 213 180 335 46 561 201 C O TT O N S E E D C R U SH ED — T o n s*......................................... 327 334 277 739 608 F E R T IL IZ E R T A G S A L E S —Tons 54 68 Total 6 S ta te s........................... * G e o rg ia , A la b a m a , Lo u isia n a an d M ississippi. 61 145 166 D is t r ic t 3 O ct. 1937 R E T A IL S A L E S * 361 45 607 130.4 135.9 102.2 C hattano oga. 105.2 108.5 FA RM IN C O M E — S ix S ta te s* . $ A la b a m a ..................... F lo r id a ........................ G e o rg ia ...................... L o u is ia n a ..................... M ississip p i ................... Te n n e sse e .................... 86,115 $ 46,522 14,980 5,226 3,184 3,768 18,119 20,376 13,865 5,292 26,072 5,121 9,895 6,739 244,906 72,857 142,064 160,529 8,529 125,827 754,712 346,529 408,183 * In c lu d e s G o v e rn m e n t b e nefit p a y m e n ts . 218,296 74,474 150,674 160,151 8,020 134,614 746,229 319,288 426,941 120.1 212.0 112.1 101.5 101.9 100.0 118.8 211.7 124.8 94.2 109.4 93.2 R E T A IL S A L E S * Adjusted D IS T R IC T (28 firm s)........................................... A tla n ta .................................................................... Birm ingham ............................................................ C h a tta n o o g a .......................................................... N a sh v ille ................................................................ N ew O rle a n s .......................................................... 109.6 109.6 186.7 186.7 117.2 117.2 82.4 82.4 89.9 89.9 94.3 94.3 127.8 209.9 115.6 106.8 108.7 99.8 177.9 107.6 76.0 93.5 81.0 R E T A IL S T O C K S U nadjusted D IS T R IC T (24 firm s)........................................... A tla n ta .................................................................... Birm ingham ............................................................ C h a tta n o o g a .......................................................... N a sh v ille ................................................................ N ew O rle a n s .......................................................... 85.1 85.1 139.7 139.7 83.7 83.7 67. r 67.8 73.L 73.3 72.3 72.3 82.2 132.4 82.4 68.9 71.3 69.1 73.7 130.9 69.1 55.8 65.9 61.1 R E T A IL S T O C K S Adjusted D IS T R IC T (24 firm s)........................................... A t la n t a ................................................................... Birm ingham ............................................................ C hattano o g a.......................................................... N ash v ille .................................................................. New O rle a n s .......................................................... 76.7 76.7 124.7 124.7 76.1 76.1 60.5 60.5 64.9 64.9 65.7 65.7 77.5 120.4 80.0 66.3 66.4 116.9 62.8 49.8 58.3 55.5 89.4 60.2 110.8 66.6 65.8 W H O LE S A L E S A LE S (70 firm s)............... G ro c e rie s...................................................... D ry G o o d s.............................................................. H a rd w a re ................................................................ F u rn itu re .................................................................. D ru g s.............................................................. 98.4 98.4 92.2 92.2 118.8 C O N TR A C TS A W A R D ED — D IS T R IC T .. R esid en tial.............................................................. A ll O th e rs................................................................ A la b a m a .................................................................. F lo rid a ...................................................................... G e o rg ia .................................................................... L o u isia n a ................................................................ M ississip p i.............................................................. Te n n e sse e .................................................... 42.2 33.9 33.9 47.8 47.8 25.0 25.0 33.4 37.0 74.1 74.1 90.2 90.2 47.2 42.8 46.6 40.2 23.2 38.8 37.7 62.7 105.1 47.2 59.5 51.7 64.8 86.3 40.7 71.1 66.9 204.3 38.7 B U ILD IN G PERM ITS— 20 C itie s ............... A tla n ta .......................................................... Birm ingham ............................................................ Jackso nville............................................................ N ash v ille ......................................................... New O rle a n s .................................................. 15 Other C it ie s ............................................. 45.7 19.6 13.4 13.4 54.9 54.9 34.2 35.4 64.2 45.7 23.0 62.4 18.8 32.8 62.4 51.9 13.2 9.9 50.6 136.1 30.5 69.7 P IG IRO N P R O D U C TIO N — ALA B A M A *. 100.7 96.7 69.6 C O T T O N C O N SU M PTIO N — 3 S T A T E S * ........ A la b a m a ........................................................ . G e o rg ia ........................................................ Te n n e sse e .................................................... 141.5 141.5 161.1 133.3 138.1 162.6 180.3 153.6 172.0 166.1 195.8 155.4 147.7 86.6 86.6 97.9 65.1 101.8 102.6 99.2 124.8 21.1 89.3 62.8 105.0 101.2 113.6 108.0 Aug. 1937 Sept. 1936 EM PLO YM EN T— (A v. for 1932*100) (000 Omitted) Aug. 1937 Sept. 1937 O ct. 1936 U nadjusted Sept. 1937 Sept. 1937 R eser v e S IX T H D IS T R IC T B U S IN E S S IN D E X E S (1923-1925»100 except a s noted) C o lle c tion Ratio O ct. 1937 + 7.5 + 18.9 + 21.5 +20.7 + 0.8 + 8.1 + 2.2 + 10.8 W H O LE S A LE TR A D E — 2.1 G ro ce rie s....................... — 7.5 D ry G o o d s..................... — 14.9 — 17.5 H a rd w a r e ......................— 4.1 — 2.5 Fu rn itu re.........................— 7.0 — 18.0 Electrical S u p p lie s— — 24.8 + 0.3 D ru g s............................... — 4.8_________ + 5.6 T O T A L (70 firm s). . . — 8.7 — 4.6 E L E C T R IC P O W ER P R O D U C TIO N — kw Hours A la b a m a ..................... F lo rid a ....................... G e o rg ia ...................... L o u is ia n a ..................... M ississip p i .................. T e n n e ssee .................... Total Six S ta te s ........... B y W ater P o w e r ............ B y F u e ls ...................... F ed er a l 222.2 R E T A IL TR A D E A tla n ta ........................... + 5 . 8 Birm ingham ................... +21.1 C h a tta n o o g a ................. + 4.7 M ontgom ery................. +15.8 N ash ville.........................+ 7.3 New O rle a n s ................. +12.9 O th e r C itie s ...................+ 7.2 D ISTR IC T (49 firm s). . . . +10.0 C O A L P R O D U C T IO N — Tons A la b a m a ................................... T e n n e sse e ................................. S ix t h Sept. 1936 Jan.-Sept.., Incl. 1937 1936 $ 92,076 15,697 3,654 20,131 15,486 27,564 9,544 $510,419 73,647 98,353 95,100 64,207 92,419 86,693 $407,998 59,110 74,488 92,422 48,102 68,109 65,767 234,898 66,356 113,368 156,806 8,466 142,802 722,696 354,764 367,932 2,102,601 679,041 1,283,765 1,254,528 55,209 1,040,588 6,415,732 3,509,986 2,905,746 1,874,992 602,473 1,153,493 1,190,103 49,021 1,115,277 5,985,359 3,531,053 2,454,306 .... .... .... .... M ississip p i...................................................... . . . . ... Six S ta te s......................................................, . . . 151.9 99.3 150.6 131.5 122.7 141.2 140.0 151.9 98.0 149.6 129.0 118.0 140.5 138.9 142.3 92.9 139.8 117.8 121.9 131.9 132.6 236.9 85.2 195.5 160.6 163.5 183.9 186.2 241.7 84.5 197.5 159.0 161.9 182.4 185.1 194.3 75.1 169.8 134.3 163.0 160.1 156.8 316.8 370.3 244.3 622.9 135.9 207.2 304.5 266.0 347.1 273.3 366.2 250.8 601.4 123.9 214.5 291.3 237.2 351.3 303.8 337.2 195.0 608.5 134.9 235.2 291.5 272.3 312.9 P A Y R O L LS — (A v. for 1932=»100) .... .... .. , M ississip p i...................................................... . . . . Six S ta te s..................................................... E L E C T R IC P O W E R P R O D U C TIO N * .... ... . ,, M ississip p i....................................................... Six S ta te s ..................................................... By W ater P o w e r....................................... ... * In d e x e s of r e t a il s a le s , e le c t r ic p o w e r a n d p ig ir o n p ro d u c tio n a n d of cotton c o n su m p tio n a r e o n a d a ily a v e r a g e o a s is . 4 B u s in e s s C o n d it io n s in t h e INDUSTRIAL PRODUCTION S ix t h F ed er a l R eser v e D is t r ic t N a t i o n a l S u m m a r y o f B u s i n e s s C o n d itio n s P r e p a r e d b y the B o a r d o f G o v e r n o r s o f the F e d e r a l R e s e rv e S y s t e m O L U M E o f in d u s t r ia l p r o d u c t io n s h o w e d a f u r t h e r s h a r p d e c re a s e in O c t o b e r a n d t h e f ir s t t h r e e w e e k s o f N o v e m b e r , a n d t h e r e w a s a r e d u c t io n i n e m p lo y m e n t. C o m m o d it y p r ic e s c o n t in u e d t o d e c lin e . D is t r ib u t io n o f c o m m o d it ie s to c o n s u m e r s w a s m a in t a in e d a t t h e le v e l o f o t h e r r e c e n t m o n t h s . V P r o d u c t io n In d e x o f p h y s ic a l v o lu m e o f p ro d u ctio n , a d ju ste d f o r sea so n a l v a ria t io n , 1923-1925 a v e r a g e = 100. B y m o n th s, J a n u a r y , 1929, to O ctob e r, 1937. WHOLESALE PRICES 1932 1933 1934 1935 1936 and E m plo ym en t I n O c t o b e r t h e B o a r d ’ s s e a s o n a lly a d j u s t e d in d e x o f in d u s t r ia l p r o d u c t io n w a s 1 0 3 p e r c e n t o f th e 1 9 2 3 -1 9 2 5 a v e ra g e a s c o m p a r e d w it h 1 1 1 p e r c e n t in S e p t e m b e r a n d a n a v e r a g e o f 1 1 6 p e r c e n t in t h e lir s t e ig h t m o n t h s o f t h is y e a r . T h e r e w a s a m a r k e d c u r t a ilm e n t o f a c t iv it y in th e d u r a b le g o o d s in d u s t r ie s . O u t p u t o f s t e e l in g o ts , w h ic h h a d s h o w n a s t e a d y d e c lin e s in c e A u g u s t , w a s a t a n a v e r a g e ra te o f 5 9 p e r c e n t o f c a p a c it y in O c t o b e r a n d b y th e t h ir d w e e k in N o v e m b e r th e r a t e h a d d e c lin e d t o 3 6 p e r c e n t . A u t o m o b ile p r o d u c t io n in c r e a s e d c o n s id e r a b ly i n O c t o b e r a s m o s t m a n u f a c t u r e r s b e g a n a s s e m b ly o f 1 9 3 8 m o d e l c a r s . I n t h e f ir s t th r e e w e e k s o f N o v e m b e r o u tp u t o f a u t o m o b ile s s h o w e d lit t le c h a n g e f r o m th e le v e l r e a c h e d a t th e e n d o f O c t o b e r , w it h a s s e m b lie s b y o n e le a d in g m a n u fa c t u r e r c o n t in u in g in e x c e p t io n a lly s m a ll v o lu m e . P r o d u c t io n o f lu m b e r a n d o f p la t e g la s s d e c lin e d f u r t h e r in O c t o b e r . I n t h e n o n - d u r a b le g o o d s in d u s t r ie s , w h e r e o u t p u t h a d b e e n d e c lin in g s in c e th e s p r in g o f t h is y e a r , t h e r e w a s a f u r t h e r d e c r e a s e in O c t o b e r . C o t t o n c o n s u m p t io n s h o w e d a s h a r p r e d u c t io n a n d a c t iv it y a t w o o le n m ills a n d s h o e f a c t o r ie s c o n t in u e d to d e c lin e . T h e r e w a s a n in c r e a s e in o u t p u t a t s u g a r re fin e r ie s , w h e r e a c t iv it y h a d b e e n a t a lo w le v e l in S e p t e m b e r . I n m o s t o t h e r l in e s c h a n g e s i n o u t p u t w e r e l a r g e l y s e a s o n a l. M i n e r a l p r o d u c t i o n c o n t in u e d a t a b o u t t h e le v e l r e a c h e d a t th e c lo s e o f 1 9 3 6 a n d m a in t a in e d t h r o u g h o u t t h is ye a r. V a lu e o f c o n s t r u c t io n c o n t r a c t s a w a r d e d in O c t o b e r a n d t h e f ir s t h a lf o f N o v e m b e r w a s s m a lle r t h a n in t h e p r e c e d in g s ix w e e k s , a c c o r d in g t o f ig u r e s o f t h e F . W . D o d g e C o r p o r a t io n . T h e d e c lin e w a s c h ie fly in p r iv a t e n o n - r e s id e n t ia l c o n s t r u c t io n . 1937 In d e x e s co m pile d b y U . S . B u r e a u o f L a b o r S t a t ist ic s, 1926 = 100. B y w eeks, 1932 to date. L a t e s t fig u re is fo r w eek e n d in g N o v e m b e r 20, 1937. FACTORY EMPLOYMENT F a c t o r y e m p lo y m e n t d e c lin e d s u b s t a n t ia lly in O c t o b e r a n d p a y r o lls s h o w e d lit t le c h a n g e , a lt h o u g h a n in c r e a s e is u s u a l a t t h is s e a s o n . D e c lin e s in t h e n u m b e r o f e m p lo y e d w e r e r e p o r t e d b y f a c t o r ie s p r o d u c in g s t e e l, m a c h in e r y , lu m b e r , a n d t e x t ile s , a n d in m a n y s m a lle r in d u s t r ie s . T h e r e w a s a s e a s o n a l in c r e a s e in e m p lo y m e n t a t a u t o m o b ile f a c t o r ie s . E m p lo y m e n t a n d p a y r o lls in c r e a s e d s e a s o n a lly a t m in e s a n d a t e s t a b lis h m e n t s e n g a g e d in w h o le s a le a n d r e t a il t r a d e . D is t r ib u t io n S a le s a t d e p a r t m e n t s t o r e s a n d m a il o r d e r s a le s in c r e a s e d s e a s o n a lly in O c t o b e r . T h r o u g h o u t t h e y e a r s a le s a t d e p a r t m e n t s t o r e s h a v e b e e n s u s t a in e d , w it h s e a s o n a l f lu c t u a t io n s , a n d t h e B o a r d ’ s a d j u s t e d in d e x o f t h e s e s a le s h a s s h o w n l it t l e c h a n g e . in g F r e ig h t - c a r lo a d in g s d e c lin e d in O c t o b e r a n d t h e f ir s t h a lf o f N o v e m b e r , r e f le c t s m a lle r s h ip m e n t s o f f o r e s t p r o d u c t s , o r e , a n d m is c e lla n e o u s f r e ig h t . C o m m o d it y P r i c e s In d e x o f n u m b e r em ployed , a d ju ste d f o r se a so n a l v a r ia tion, 1923-1925 a v e ra g e = 100. B y m o n th s, J a n u a r y , 1929, to O ctober, 1937. MEMBER BANK CREDIT P r ic e s o f in d u s t r ia l m a t e r ia ls , p a r t ic u la r ly r u b b e r , a n d h id e s , d e c lin e d f u r t h e r f r o m t h e m id o f N o v e m b e r, a n d th e re w e re so m e d e c re a s e s in p ro d u cts. L iv e s t o c k a n d m e a t p r ic e s d e c lin e d d r o p p e d s h a r p ly f o llo w in g th e a n n o u n c e m e n t b y B p o lic y . n o n - fe r r o u s m e t a ls , s te e l s c r a p , d le o f O c t o b e r to th e t h ir d w e e k t h e p r ic e s o f f in is h e d in d u s t r ia l s u b s t a n t ia lly a n d c o ffe e p r ic e s r a z il o f m o d if ic a t io n o f it s c o n t r o l B a n k C r e d it D u r i n g t h e f ir s t h a l f o f N o v e m b e r t h e F e d e r a l R e s e r v e B a n k s p u r c h a s e d $ 2 8 ,5 2 5 ,0 0 0 o f U n i t e d S t a t e s G o v e r n m e n t S e c u r it i e s , i n a c c o r d a n c e w it h t h e p o li c y a d o p t e d in S e p t e m b e r t o p r o v id e a d d it io n a l r e s e r v e s f o r m e e t in g s e a s o n a l c u r r e n c y a n d o t h e r r e q u ir e m e n ts . F r o m th e m id d le o f O c t o b e r to N o v e m b e r 1 7 , e x c e s s r e s e r v e s o f m e m b e r b a n k s in c r e a s e d f r o m a b o u t $ 1 ,0 0 0 ,0 0 0 ,0 0 0 t o $ 1 ,1 0 0 ,0 0 0 ,0 0 0 , r e fle c t in g t h e F e d e r a l R e s e r v e s e c u r it y p u r c h a s e s a n d a c o n s id e r a b le d e c lin e in r e q u ir e d re s e rv e s a t m e m b e r b a n k s in N e w Y o r k C it y , c a u s e d p a r t ly b y a r e d u c t io n in d e m a n d d e p o s it s a r is in g f r o m a liq u id a t io n o f b r o k e r s ’ lo a n s . W e d n e s d a y fig u re s f o r r e p o r tin g m e m b e r b a n k s le a d in g cities, Sept. 5, 1934, to N o v . 17, 1937. in 101 L o a n s to b r o k e r s a n d d e a le r s r e p o r t e d b y b a n k s in le a d in g c it ie s d e c lin e d b y $ 2 5 0 ,0 0 0 ,0 0 0 d u r in g t h e f o u r w e e k s e n d in g N o v e m b e r 1 7 . C o m m e r c ia l lo a n s , f o l lo w in g a s t e a d y in c r e a s e f o r s e v e r a l m o n t h s , d e c lin e d a f t e r th e m id d le o f O c t o b e r . M e m b e r b a n k s in N e w Y o r k C i t y in c r e a s e d t h e ir h o ld in g s o f U n it e d S t a t e s G o v e r n m e n t s e c u r it ie s b y o v e r $ 1 5 0 ,0 0 0 ,0 0 0 w h ile b a n k s o u t s id e N e w Y o r k C i t y s h o w e d a f u r t h e r r e d u c t io n . D e p o s it s c o n t in u e d to s h o w m o d e r a t e r e d u c t io n s .
@FedFRASER