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MONTHLY
R-EVIEW
Of Industrial and Financial Conditions in the New England District
By Frederic H. Curtiss, Chairman and Federal Reserve Agent
FEDERAL
VOL. XVI
RESERVE
BANK
OF
BOSTON, MASS., DECEMBER 1, 1932
BOSTON
NO. 12
THE SITUATION
During October a recession from September of of these three months, however, the volume was
slightly more than seasonal character occurred in greater than in any month during the period from
the level of general industrial activity in New January through July, and in October production
England, although an index of electric power con- was about 23 per cent greater than in the corresumed for industrial purposes in this district, sponding month of 1931.
During the first 10
compiled by the Electrical World, rose between months of 1932 total boot and shoe production in
September and October, and carloadings of merch- this district was in practically the same volume as
andise and miscellaneous freight were in larger vol- during the similar period last year. In Octo her, as
ume during October. Most lines of activity, how- compared with September, an increase of more
ever, either did not in- ,--------- - - - - - - - - - - - - - - - .
than four per cent was
LIFE INSURANCE SALES-NEW ENGLAND
recorded in the number
crease as much as usual
between September and
NEw PAID-,oR ORDINARY iNsuRANCE
of wage-earners em75 JAN. FEB MAR APR MAY JUN. JuL . AuG. sEP. ocT Nov. DEc.
ployed in manufacturOctober, or actually decreased moderately.
>-------+-------+-- - -- - - - ---<
ing establishments in
10
The volume (square
Massachusetts, and aglQ 55 > - - - - -~ - - + -- - - - - - + - - - - - - - - - - - <
gregate payrolls in manfeet) of residential
building con tracts
~ 60> - - - + - + - -- - + - - ~- - - - - - + - - - - - - - - _ , _ _ ,
ufacturing
establishawarded in this district,
c::.
ments increased 2.6 per
~ 55
which during Septem.,, t--,>---.--- - - + - - - -_ . , . . _ - - - - - - - - - ---+-.,.__,
cent, although average
her had risen to 25.4 per
3 501--".......,=:;;,,,,--=--,.t-- - - - - +~--'t----tl---,----=--t------J weekly earnings per percent of the 1923-24-25
~
son employed declined
~ 45> - - - - - - + -~ - - - - + - - - - - = - ~~ + - - - - - - - i
slightly. Registrations
average month, fell off
to 22.9 per cent in Octot--+
---f'-----,;;;,,,...-~
j
of
new automobiles in
40
New England during
her, and the volume of
35
commercial and industhe first 10 months of
•
1
b
"ld"
Although the amount of new ordinary life insurance written in New
tna Ul ing con tracts England during 1932 was less tha n in either of the two preceding years, 1932 were 43 •5 per cent
a warded remained prac- the seasonal decline betwe{930~~d~ 93~~ September was less tha n fewer than in the correticall y unchanged at
Source of data-Life Insurance Sales Research Bureau.
sponding period last
15.2 per cent of the 1923-24-25 average. Cotton year, while in October a decrease of 45. 7 per cent
consumption in New England mills increased in occurred from October, 1931. The amount of new
October from the preceding month, but by less ordinary life insurance written in this district durthan the usual seasonal amount, while consump- ing October was 21.1 per cent less than in that
tion of raw wool, which usually increases between month last year. The number of commercial
September and October, declined noticeably. failures in New England, as reported by R. G.
Wool consumption in this district, however, was Dun & Co., for the first 10 months of the current
considerably greater during August and September year increased by 27.6 per cent over the similar
than in any other months of the current year. period last year, but total liabilities were 12.4 per
Boot and shoe production in New England, when cent less this year. Sales of reporting retail esallowances for seasonal changes had been made, tablishments in this district were about 21 per
reached a peak for the year in August, and declined cent less in October than in the corresponding
slightly in September and also in October; in each month of 1931.
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Federal Reserve Bank of St. Louis
~~~---+-~-~---+--~~--~-~~
2
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
December 1,
MONEY AND BANKING
Contrary to the usual seasonal upward trend was largely seasonal in character, and not excesat this time of year, money rates on November 23 sive when compared with previous years.
in the Boston money market were either unThe movement in time deposits during recent
changed or easier, as compared with the past months has been rather erratic. From a high
several weeks. The asking rate on bankers' prime volume of over $219,000,000 reached on Septem90-day acceptances, unchanged at one-half of ber 28, time deposits, with rather wide fluctuaone per cent, remained at the lowest level since an tions, declined on November 2 to $202,000,000,
American acceptance market was first established and remained substantially unchanged during
in 1914. A small but increasing volume of the following two weeks. On November 2 net
brokers' prime commercial paper was being sold demand deposits reached a peak of nearly $590,on November 23 at 1¼ per cent, thus creating a 000,000, the highest volume recorded for the
new all-time low rate for this class of paper. In year to date, and one week later than the peak
October the lowest rate was 1¼ per cent, and the reached for total deposits as a whole; a decline of
downward tendency toward the 1¼ per cent rate $17,000,000 occurred between November 2 and
began to gain momentum during the past fort- November 19. While the decrease in total denight. The average yield on the November 23 posits this year agrees rather closely with the
issue of United States Treasury bills was 0.17 per average decline during this period for the past
cent. This is slightly higher than the record low four years, the decrease of $17,000,000 this year
yield of 0.14 per cent on Octo her 19, but lower than in net demand deposits is approximately $5,000,for any of the three issues sold between October 19 000 less than the average reduction for the
and November 23. This November 23 offering corresponding period of the past four years.
During September the decline in loans and
replaced Treasury bills dated August 24, whose
average yield at time of issue was 0.42 per cent. discounts ceased in the Boston banks, but the
Between June 8 and October 26 total deposits upturn was only a seasonal interruption in the
in the Boston member banks increased over process of loan liquidation, and in October the
$82,000,000; by November 16 a continuous and decline was resumed. Between September 21
fairly rapid decline had reduced this expansion by and November 16 total loans and discounts consome $27,000,000, bringing the volume of total tracted $40,000,000. Commercial loans during
deposits to $793,000,000, approximately the level this period declined $27,000,000 and collateral
of late September. This contraction, however, loans $13,000,000. Within the past month there
FEDERAL
RESERVE
FLUCTUATION
OF
BANK
PRINCIPAL
OF
BOSTON
ITEMS
·····•••...
//'
\/NOTES
IN
CIRCULATION
•••....
-----·--
: '.::--,,:.:~.:::.::~ .:::;;;~~~:,,_...
•• ...••
The monthly averages of loans to member banks by the Federal Reserve Bank of Boston declined each month between December, 1931,
and October, 1932, while holdings of Government securities more than doubled between March and August.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1932
3
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
has been relatively little change in the volume of
customers' loans -secured by stocks and bonds,
the decline being largely confined to contraction
in loans to brokers. Despite the decline of
$47,000,000 in collateral loans ·o n November 16
as compared with a year ago, the proportion of
this class of loans to total loans and discounts
rose from 36 per cent to 40 per cent; on the other
hand, the decline of $95,000,000 in commercial
loans during the year maintained the proportion
of total loans and discounts substantially unchanged at 51 per cent. Thus, although the
declines in the actual volume of these classes of
loans were large, the proportionate composition
of the total remained little changed during the
year.
Total holdings of all classes of stocks and bonds
by Boston member banks reached a peak of over
$333,000,000 on November 2; during the following
week the volume declined $12,000,000, but this
reduction was partially offset by an increase of
almost $4,000,000 during the week of November
16. Most of these fluctuations occurred in holdings of United States Government obligations;
holdings of other stocks and bonds declined
slowly but steadily throughout the period by
about $5,000,000.
Total deposits in the weekly reporting member
banks outside of Boston reached a volume of over
$504,000,000 on November 2. During the week
ended November 16 demand deposits showed a
small increase, while both commercial and collateral loans continued the downward trend of
recent weeks. On November 16 this year collateral loans comprised about 35 per cent of all
loans and discounts, as compared with 38 per
cent last year; the proportion of commercial
loans, on the other hand, was 38 per cent, as
MONEY
RATES
AND
BOND
against 40 per cent a year ago. In contrast to
the situation in Boston member banks, investment holdings of United States Government
obligations rose, while other security investments
remained relatively unchanged.
The volume of total bills and securities held by
the Federal Reserve Bank of Boston remained
substantially unchanged between October 26 and
November 16. On the other hand, total cash reserves reached a recent high point early in November, since which time the decline has been fairly
marked, amounting in two weeks to $14,000,000.
During the same period total deposits fell $10,000,000, paralleling the decline in deposits in the
member banks.
The steadily declining trend in the volume of
Federal reserve notes of the Federal Reserve
Bank of Boston, which has been in progress since
early in July might indicate a rather rapid reduction in the volume of currency in circulation in
this district. The trend of Federal reserve notes
alone, however, is not conclusive in this respect.
It is complicated by the rather wide changes
taking place from time to time in the volume of
other currency in circulation, as well as the
changes occurring in the volume of national bank
notes in circulation. The volume of gold and
gold certificates in circulation, like Federal
reserve note circulation, has been showing a
steadily declining trend in recent months; on the
other hand, the volume of national bank notes in
circulation has been expanding, as a result of the
provisions of the Federal Home Loa.n Bank Bill,
making available additional United States Government obligations as security for national bank
notes. New England as a whole, however, has
taken much less advantage of this new circulation
privilege than has been the case in the rest of the
United States.
COLLATERAL
PRICES
REPORTING
1929
1930
1931
LOANS
MEMBER
BANKS
1932
(l)
~ ~ - ~-
- r --
- - - -~ ~ 8~
0
z
V>
~
- - - --
-
~
~ --
~ - --
---1 7 ~
0
0
...
r
r
0
·····•·,· 6
§
~
a::
~
3l.---!---l'.~ ~ ~ , _ . j
~ - -~ - - - - - - 1
5
J:
4
In November prime commercial paper rates, 4-6 months' maturity.
in the New York market, dropped to levels even lower than the unusually low rates which prevailed during the summer of 1931.
Source of data-Federal Rcsevre Bank of N ew York.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Collateral loans of New England reporting member banks declined
during the first seven months of 1932 at about the same rate as those
for the entire country, but have declined only slightly since July.
4
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
December 1,
NEW ENGLAND INDUSTRIAL CONDITIONS
Electric Power:- Industrial activity in New 1929, the seasonally adjusted index of merchanEngland continued to show approximately the dise, l.c.l., and miscellaneous carloadings for over
same rate of change during October as that which 40 months did not record more than seven monthly
prevailed during the preceding three months. increases, approximately one monthly increase
The index of electric power consumed for indus- every six months. In the current year, during the
trial purposes by representative establishments in six months from February through July,a constant
eight branches of manufacturing activity, com- decline was recorded, carrying the index down to a
piled by the Electrical World, indicated, after new low; the past three months, August, Septemseasonal adjustment, a rise of more than five per ber, and October, however, were months during
cent in October. In the past four months an in- which increases occurred, the first time since the
crease has taken place in the index of electric beginning of the downward trend during which
power consumed for industrial purposes amount- any consecutive increases have been recorded.
ing to more than 25 per cent, a monthly rate of
Building :-The total value of new construcincrease of approximately six per cent. This tion contracts awarded in this district during
percentage of increase per month is about one per October was 9.1 per cent less than the value of
cent larger than the rate of improvement evident the September awards. This decrease in October
in the several indices of industrial activity and followed two months during which moderate inproduction. Such indices as electric power pro- creases were recorded. In no instance during the
duction, carloadings, residential building, com- current year has there been a monthly increase
mercial and industrial building, and consumption over the corresponding month in 1931. The
of raw cotton and wool in the aggregate gained value of new contracts awarded during the first 10
about five per cent a month from May through months of 1932 on the whole have amounted to
September. In October, however, slight declines only about 40 per cent of the value of construction
were recorded in each of these indices, with the undertaken in the same period last year. During
exception of carloadings. On the whole there has October the only increase among the principal
been a fairly close correlation in both the direction classes of construction occurred in the public
and the magnitude of the movement of the ad- works and utilities, the group which is dominated
justed indices of electric power consumed for by new highway •awards. The seasonally adindustrial purposes and the various production justed indices for the volume of new residential
indices in this district during recent months.
and commercial and industrial building in October
Carloadings :- The index of merchandise 1. c. 1. declined, the residential index losing about all
and miscellaneous carloadings, adjusted to season- the gain noted in September, during which
al variations,increased in October. The downward month only a fractional decrease was recorded.
trend in the volume of carloadings has been one of
Reports covering the first half of November
the most persistent movements in the depression. indicated no improvement in the daily average of
Starting from the peak recorded in February, new construction contracts awarded, either in the
COMPARISON
OF
CHECK
10 MOS. 1932 COMPARED
WITH SAME PERIOD 1931
PAYMENTS
CARLOADINGS
OCTOBER 1932 COMPARED
WITH OCTOBER 1931
BOSTON
I
1930
IN
NEW
ENGLAND
1931
1932
I
BANGOR
BROCTON
rALL
401---- - - --+-- - - - -- + - --
RIVER
- --
--f
HARTrORD
~
HOLYOKE
~
LOWELL
I
I
LYNN
~
NEW BEDrORD
I
NEW
I
I
I
I
I
I
I
I
~
HAVEN
I
I
SPRINGrlELD
I
WATERBURY
I
. _l__
WORCESTER
-
-40%
-30%
- 20%
-I Q;G
Only one city (Boston ) showed a decline of less than 20 per cent in
volume of check p ay ment s during October in comparison with the
corresponding month a year ago.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
zot-,-,-~=-----:.==-- - t - - - - - --1~ -- - ~-----J
~
I
PORTLAND
PROVIDENCE
I
~
"'
MANCHESTER
0'--'-.1...L-l-.1....-'----'--....L...L.-1....J.---L-.....l-1....J.....L....l-'-L-J....J'----'--.........__._.._..,__,_............... . . . L . . . L ~ ~
With the exception of the Labor Day week, the curves representing
t otal and merchandise, l.c.l. , and miscellaneous carloadings have
shown a fairly steady upward tendency since the middle of July.
S ource of data-American Railway Association.
1932
total or in any of the three principal classes.
Employment:-The total number of wageearners employed in 1113 representative manufacturing establishments covered by reports of the
Massachusetts Department of Labor and Industries was 166,786 for the week ending near
October 15, an increase of 6519 employees, or 4.1
per cent, compared with the number employed in
the same establishments during the corresponding
week in September. The amount of the combined weekly payroll for all manufacturing
establishments reporting showed an increase in
October of 2.6 per cent over the September
amount. The average weekly earnings per person
employed were $17 .57 in Octo her compared with
$17.83 for September. October was the third
successive month in which increases in employment and wage payments have been reported
since July of this year, the month which marked
the lowest point of the industrial depression.
The increases in the number employed in all
manufacturing industries combined were as follows: August over July, 12.3 per cent; September
over August, 9.8 per cent; October over September, 4.1 per cent. Since July the total increase in
employment was 28.3 per cent. The increases in
the amount of payroll for the three months were
as follows: August over July, 13. 7 per cent;
September over August, 13.2 per cent; October
over September, 2.6 per cent. Since July the
total increase in the amount of the payrolls was
32.2 per cent, which exceeded somewhat the
increase of 28.3 per cent in the number employed,
indicating that not only were large numbers
added to the working force, but also that many of
those employed were working a greater number of
hours per week in October than in July. These
increases may be considered as a further step in
CONSUMPTION
OF
RAW
COTTON
DAILY AVERAGES-NEW
6000
5
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
JAN.
FEB. MAR
APR. MA"I"
JUN.
COTTON
AND
RAW
the recovery from the low point of the depression
in July, rather than seasonal, because, on reference
to the records for seven prior years, 1925-1931, it
was found that the averages of the percentage
changes in October, compared with September,
were a decrease of less than one-half of one per
cent in employment and a decrease of 1.5 per
cent in the amount of the payrolls.
The number of wage-earners employed in the
48 Massachusetts cotton goods establishments
reporting showed an increase of 4. 7 per cent, and
the payroll showed an increase of 4.8 per cent.
In the 51 woolen and worsted goods mills the
increase in employment was one-half of one per
cent, with a decrease of six-tenths of one per cent
in the payroll. In the 10 dyeing and finishing
plants employment decreased two-tenths of one
per cent, and the payroll declined 2.8 per cent.
The 98 reporting boot and shoe establishments
showed an increase of four per cent in employment
and a decrease of one per cent in the payroll.
Conditions in this industry were varied, with the
establishments in Brockton showing the greatest
improvement. Returns from 29 electrical machinery and radio apparatus concerns showed an
increase of 9.5 per cent in employment and a
decrease in the payroll of 1.1 per cent. The gain
in employment was almost wholly due to improvement in radio apparatus manufacturing.
The regular monthly report of the Commissioner
of Labor for Rhode Island, covering 219 manufacturing establishments and 33 building and construction concerns, showed that the 219 manufacturing establishments had 52,684 persons employed at the end of October, compared with
53,803 at the end of September and 47,540 at the
end of August. The number was 2.1 per cent
smaller than at the end of September, but was
WOOL
SHOE
ENGLAND
JUL . AUG. SEP.
PRODUCTION
NEW
OCT. NOV.
DEC.
1926
I
1927
1928
ENGLAND
1929
1930
1931
1932
~
.,,!
CONSUMPTION
14
i\
10
;,.,,,
,.
12
"
0)
Ii
7lI A
r·1
II
I
~
:,
I•
!\
,LL.-.... \ :-. i\ /"\ I
~. i i !\
\ I \/ T'~'1I\' \} _l_
!
l~'
~
i ,:
lI / \V: ~ 7 -- \ ~I
\
l I,.., \
\
I ii t
i
\
v
\
\
l
/'"i
I
:t
[\:
\
\
V
~
.
--· ACTUAL NUMBER
- 1 2 MOS. MO\! AVE.
0
Although continuing the rapid rise since July, the consumption of raw
cotton in October increased only moderately, while the consumption of
raw wool showed a definite falling off from the high point of the year
recorded in September.
Source of data- U.S. Department of Commerce.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
In October, for the third consecutive month, shoe production in New
England showed an improvement over the same month of last year.
Although production declined seasonally in October, it was the largest
for that month since 1929.
Source of data- U. S. Department of Commerce.
6
December 1,
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
10.8 per cent greater than at the end of August.
When compared with the same periods of 1931
and 1930, these establishments had 4. 7 per cent
fewer persons employed than in 1931 and 17.9
per cent fewer than in 1930. A smaller number of
workers was employed in the metal trades, cottons,
silks, woolen and worsteds groups, while increased
numbers were employed in textile finishing, rubber, and miscellaneous groups; an increase of less
than one-ten th of one per cent was reported in the
jewelry group. The 120 textile plants of all kinds
reported 35,690 workers employed at the end of
October, compared with 37,107 at the end of
September, a decrease of 3.8 per cent.
While the increases in New England employment and payrolls in the past three months have
been largely seasonal in nature, some decrease
has taken place in the percentage of deficiency in
comparison with the corresponding months of last
year. Employment at the end of October was only
10.0 per cent below October, 1931, compared with
30.2 per cent less in July; similarly, the October
payrolls were 22.3 per cent less than in October,
1931, compared with a 42.2 per cent shrinkage
in July from the same month last year.
Boots and Shoes:-The total number of pairs
of shoes produced in this district during October
was 11,225,000 pairs, a decrease of 8.4 per cent
from the preceding month. The October output
was 23.5 per cent greater than that for the corresponding month of 1931. The relatively good
volume of production during the past three
months (August through October) has brought the
total output for 1932 to date to within 500,000
pairs of the production recorded in the first 10
months of 1931, a decrease of less than 0.03 per
cent. It will be recalled that for the entire year
MEN'S
FURNISHINGS
til
350 1923 1924 1925 1926
•- · MONTHLY INDEX
-12 MOS. MOV. AVE.
325
~
~
300
1927
1928
HOSIERY
SALES
BOSTON DEPARTMENT STORES
MONTHLY INDEX AND 12 MONTHS MOVING
1929, 1930
1931
19~2
~
12
AND
DEPARTMENT
MONTHS
MOVING
STORES
AVERAGE
~
1,,.
1925
1926
1927
1928
1929
1930
1931
1932
-+-- - + - - + - - - - + - - + - - - + - - + - - - - t - - - l
25011 - - - - + - - - f - - - + -- , ! - - ---+-
225,f - - - + - - + - - - + - ~~
i
~
i
,
~ , 7s+- - - l l - - - i l ' - - f l --
--ll--
-li---4-----t- - - - i
----¾----il----!1--!l----t-
--l
;i!
~2001 1----1----+--+---i-!-----il--~!------➔
,----i
-tt--~---.....,
200"----1-1---il---H--~-!-------i!----4---..;+-~4-----,J-----i
75n,..- - - U - - - ! 1- -,::: l-,.__.
,:--1-- - L l - - -'4 ----H
n --;+---!-+----t
15,
::
I
::~~~~i~J \AJ\NVJ\!V:,\r
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
INDEX
1924
o., 275,f---+-
~ 250
i
3:-' 1923
"'~
~
"> 2251 - - - . ; / - - - l l - --: l----+l-----;+--H- -
SALES-BOSTON
MONTHLY
AVERAGE
I... 2751----1----¼---¼----il---+--+----+---!t---tt-----,
·'":'
1931 shoe production in this district amounted to
111,500,000 pairs, the fourth largest annual total
since 1922. The normal peak in shoe production
occurs in September, but this year the volume of
the August output was so large that, after seasonal
adjustment, a decrease was recorded in the index
of shoe production for September, and a similar
decline was noted in the adjusted index for October. Compared with the declines during the
same months in the two preceding years, shoe
production this year is well sustained.
Textiles: -New England textile act1v1ty,
which has been principally responsible for the
improvement in the general industrial situation
during the past three or four months, was not
equal to seasonal expectations during October.
The volume of raw cotton consumed in .October
amounted to 72,521 bales, which, after seasonal
allowances had been made, was 1.6 per cent below
the September total. In actual percentage the
October index reported a gain of almost 16 per
cent over the corresponding month a year ago.
The change in the volume of raw wool consumption during October, as compared with the preceding month, was more pronounced than that in
raw cotton. While the actual number of bales of
cotton consumed in October was greater than in
September, the poundage, grease equivalent, of
raw wool consumed during October declined about
4,000,000 pounds to a total of 23,420,000 pounds,
grease equivalent. This decline, after seasonal
allowances had been made, reduced the index of
raw wool consumption for October more than 24
per cent from the September index. The October
index of wool consumption showed a rate of consumption more than 10 per cent greater than
that obtaining during the same month in 1931.
::,.
1so,f-----if--
-~
I 25
~
~
u
~
100
i
- H--r,..-
!l
-4-- - l - l - - *
il _
__,
--H---i+--i-+----:-+--H--LL-H
! L._
- .-\ -++--+t-----,
1
j
'
tJ:
~
1
A i i ~ ' : ' : i I\ f
\! •,,,! \, ,i N\..
J.:....+-rr\
f : 1:
~ I \{ -i
I ,/i ~:, _;i
':i i:\ J i \ i ,! V if V V V '
VV
1./
/ 1/ ,,
:
l
:;i
~
-l+1'-
/\
!
75 '
!
:
A
~:
/
I
1
r\ ~ I
J
"
V
s , O l - - ' - + - - - + - - + - - - + ---+----+---+---+-----+----+I
2 5 , t - - - - - + - - - f - - - + - -+ - - - + - - ·· · MONTHLY
112 M?S.
INDEX
Mor
AVE.
J_____j
I
1932
7
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
RETAIL TRADE
The volume of sales in reporting department stores in ew England was 22 per cent lower during
October than in the corresponding month of 1931, and 33 per cent smaller than in October, 1930.
The stores also reported a decrease of 22 per cent in sales for the first 10 months of 1932 compared.
with 1931 and of 30 per cent compared with 1930. Relatively large declines from October, 1931,
occurred in stores in each of the six New England states, ranging from 16 per cent in Maine to 29
per cent in New Hampshire.
Stores in Providence and New Haven collected their regular accounts outstanding at the first of
October at a less favorable rate this year than in October of the three preceding years. The Boston
stores reported a higher rate of collections than in October, 1929, 1930, and 1931, and in the entire
group the percentage of regular accounts collected during October this year was larger than in the
same month in 1930 and 1931, although smaller than in October, 1929.
The men's clothing and the silk and muslin underwear departments showed the smallest decrease
in sales, amounting to 13 per cent, in comparison with October last year, while the most marked
reductions from the corresponding month a year ago continued to be recorded in the cotton dress
goods and jewelry departments, with declines of 27 and 29 per cent.
Connecticut Department Stores .. .... . . . .
Maine Department Stores ........ . . . ... .
Massachusetts Department Stores .. . .
New Hampshire Department Stores ..... .
Rhode Island Depa.rtment Stores .. ... ... .
Vermont Department Stores .... . . . . . ... .
Boston Department Stores ....... . . . ... .
New Haven Department Stores ....... . . .
Providence Department Stores ...... . ... .
. . ew England Department Stores . ..... . .
SALES CONDITIONS
1931 = 100
Month of October
1929
1930
1931
1932
111
103
100
73
116
84
108
100
111
100
123
78
111
100
120
71
121
82
110
100
112
105
100
74
77
126
114
100
99
100
70
105
121
82
110
100
122
111
100
78
January through October
1929
1930
1931
1932
106
104
100
79
110
106
100
80
113
109
100
78
115
110
100
72
124
112
100
81
114
108
100
76
112
109
100
78
79
109
105
100
122
111
100
81
113
109
100
78
CREDIT CONDITIO S
Percentage of Regular Accounts Outstanding at the First of October
Collected during October
1930
1929
44.2%
39.1%
Boston Department Stores ...... .. .. . . .. .. . ... . ... . ......... .
52.7
New Haven Department Stores .... .. . . .. ... ... . . . .. .... . . . . . .
53.8
48.8
52.9
Providence Department Stores ..... . . . . . . . ......... . ... . ... . . .
46.1
43.5
New England Department Stores .. . ... . . . . . . . . . . . . . . . . . . . . . . .
1931
43.6%
49.9
46.0
44.3
1932
45.7%
47.8
42.1
44 .7
SALES BY DEPARTMENTS-NEW ENGLAND DEPARTMENT STORES
1931 =100
January through October
Month of October
1929
1930
1931
1932
1932
1930
1931
1929
146
128
100
71
135
100
77
170
Silk and Velvet Dress Goods ... . . .. .... .
116
93
100
74
94
100
75
122
Woolen Dress Goods ...... . ... . ..... . . .
132
100
66
143
137
100
73
166
Cotton Dress Goods ... ... . . .... . .. . . . . .
108
100
74
125
100
71
*Jewelry ............. . . . . . . . . . ... . ... .
73
126
114
100
87
163
139
100
Men's Clothing ....... .. . . .... . . . ..... .
118
114
100
78
138
78
125
100
Men's Furnishings .... . . . . . . . . . . . . . . .. .
121
112
100
76
78
127
100
132
Boys' Wear ....... . .................. .
*Women's, Misses' and Juniors' Ready-to74
100
109
111
100
76
Wear .................. . ........... .
*Women's, Misses' and Juniors' Ac81
100
108
81
115
100
cessories ....... . ... . . . ..... ... .. .. . .
77
110
100
115
141
83
118
100
Millinery ................ . ..... .. .. .. .
74
100
99
91
74
119
100
123
Women's and Children's Gloves ..... . . . . .
83
100
104
108
84
110
100
114
Corsets and Brassieres ............. . . .. .
82
100
114
120
78
119
100
127
Women's and Children's Hosiery ...... . . .
77
100
115
131
128
100
78
144
Knit Underwear, including Glove Silk ... .
84
100
102
87
108
106
100
113
Silk and Muslin Underwear ............ .
82
100
110
113
81
114
100
117
Women's and Children's Shoes .... . . . . . . .
78
100
110
116
96
100
80
106
Furniture .................... .. .. . ... .
* Due to a change in the reporting service, identical figures for 1929 are not available for these departments.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
8
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
Dec. 1, 1932
SUMMARY OF BUSINESS CONDITIONS IN THE UNITED STATES
PRODUCTION
STATES
INDUSTRIAL
UNITED
1927
14
1928
1929
1931
1930
1932
l.j
~ 130
A.
~ 12~
-~ 110
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FACTORY EMPLOYMENT
UNIT£0 STATES
1927
II
1928
1929
1930
1931
1932
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5
WHOLESALE PRICES
UNITED STATES
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Production and Employment:-Industrial production, as measured by the
Board's seasonally adjusted index, continued in October at 66 per cent of the
1923-1925 average, as compared with a low level of 58 per cent in Ju]y. In
the textile industries, which had shown a rapid expansion in August and
September, there was a slight decrease in consumption of raw materials, while
output of finished products increased somewhat. Shoe production, which
also had increased substantially in recent months, showed a seasona] dec]ine.
Operations at steel mills expanded from an average of 15 per cent of capacity
in September to 19 per cent in October, contrary to seasonal tendency, and,
according to trade reports, continued at about this rate through the first three
weeks of ovember. Production of automobiles in October declined further
to a new low level. At coal mines activity continued to increase rapidly until
the midd]e of October, but since that time a reduction, largely seasonal in
character, has been reported.
Emplo7ment in most manufacturing industries increased between the
middle o September and the middle of October, and the Board's seasonaJly
adjusted index of factory employment showed an advance from 60 per cent
of the 1923-1925 average to 61 per cent. At textile miJls working forces
increased by considerab]y more than the usual seasonal amount, and substantial
increases were also reported at steel mills, lumber mills, and car building shops.
In the canning and automobile industries there were decreases in employment.
Value of construction contracts awarded, as reported by the F. W. Dodge
Corporation, continued at low levels during October and the first half of
November. The Department of Agriculture estimate of the cotton crop,
based on November 1 conditions, was 11,950,000 bales, about 525,000 bales
larger than the estimate a month earlier.
"'1
~
~
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Volume of industrial output, after increasing considerably dming August
and September, remained unchanged in October. Factory employment and
payrolls reported for the uiidd]e of the month showed a further increase.
During October, as in the last three weeks of September, wholesale commodity
prices declined, and in the first three weeks of November the general average
was at the level of early summer.
1927
1928
1929
1930
1931
1932
Distribution:-From September to October the volume of freight traffic
increased by more than the usual seasonal amount; after the middle of October
carloadings declined, reflecting chiefly seasonal developments. Dollar value
of dE>partment store sales increased by the usual amount in October.
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5
Wholesale Prices:-vYholesale commodity prices, ae measured by the monthly index of the Bureau of Labor Statistics, declined from 65 per cent of the 1926
average in September to 64 per cent in October. Weekly figures show declines
in the general average from early September through the first week in November, reflecting reductions in the prices of many domestic agricultural products
and their manufactures, as well as the prices of steel rails, copper, coffee, rubber,
and silk. In the second week of November prices of many leading commodities, including grains, hogs, cotton, silk, zinc, lead, and tin, advanced considerably, but later the prices of these commodities declined.
4(:
RESERVE BANK CREDIT ANO FACTORS IN CHANGES
UNITED STATES
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Bank Cr,dit:-Volume of reserve bank credit showed Jittle change for the
four-week period ending November 16. Member bank balances at the
reserve banks increased further by $75,000,000, and in the middle of November
were about $475,000,000 in excess of legal reserve requirements. This growth
in reserve balances reflected an increase of $60,000,000 in the stock of gold and
the issue of additional national bank notes. Demand fm; currency showed
little change during the four-week period. Loans and investments of reporting member banks in leading cities outside New York City and Chirago declined further between the middle of October and the middle of November,
reflecting a further reduction of loans at these banks. In ew York City the
investments of member banks increased by an amount larger than the decrease in loans, so that total loans and investments of these banks showed a
further increase. Money rates in the open market continued at low levels
during October and the first half of November. Rates on 90-day bankers'
acceptances were unchanged at one-half of one per cent, and rates on prime
commercial paper declined from a range of 1¾-2 per cent to a range of l½-l¾
per cent.
@FedFRASER