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MON THLY RE VIE W Of Industrial and Financial Conditions in the New England District By Frederic H. Curtiss, Chairman and Federal Reserve Agent FEDERAL RESE RV E VOL. XVI BA N K O F BOSTON, MASS., JANUARY 1, 1934 BOSTON NO. 1 THE SITUATION During November the level of general industrial 29 .6 per cent in October. In November, 1932, activity in New England declined from October by however, this index was 19.S per cent. A similar more than the usual seasonal amount. This de- index of the volume of commercial and industrial crease was moderate, however, with the aggregate building in New England was 17 .2 per cent in industrial activity in November remammg both October and November, 1933, as compared considerably higher than in the corresponding with 11.7 per cent in November, 1932. During month of 1932. Department store sales re- November the total value of new building conported by 54 establishments in 28 New England tracts a warded in New England was nearly four communities were one per cent smaller in Novem- per cent higher than the October value, and exber than in the same ceeded that for N ovemLIFE INSURANCE S ALES -NEW ENGLAND month a year ago, and ber, 1932, by more than NEW PAID-FOR ORDINARY INSURANCE for the first 11 months 80 per cent. The inof 1933 were about nine crease was due principer cent less than in the pally to the public 60 corresponding period of works awards. ~ 50 1932. According to the ~ ~ Little change took Massachusetts Depart· c::. ... 40 place in the seasonally ment of Labor and Inadjusted indexes of texdustries, the number of ~ 30 tile activity between persons employed in ~ October and Novemrepresentative Massa20 ~ ber. The amount of chusetts manufacturing raw cotton consumed establishments during by New England mills November was 4.7 per in October was approxi- In November a pronounced improvement was noted in the amount of cent less than the numma tely 83.,400 bales, new ordinary life insurance written in New England. This increase of ber in October. Aggreover 13 per cent in the value of new paid-for insurance compares and in November was favorably with the November record of the three preceding years. gate payrolls in these Source of data-Life Insurance Sales Research Bureau. 83,200 bales, as comestablishments declined pared with 72,500 and 67,900 bales in. the same 6.3 per cent between October and November, and months in 1932. The volume of raw wool con- average weekly earnings per person employed sumed in New England mills declined between declined 1. 7 per cent. A part of these declines was October and November, although there is usually attributable to customary seasonal changes. a small seasonal increase between these months. A decrease occurred in the number of boots and In both October and November, 1933, however, shoes produced in New England during N ovemthe amount of raw wool consumed was greater ber, as compared with October, and the volume than in the corresponding months of the preceding in November, 1933, was practically the same as year. in November, 1932. The reduction in the output In November a seasonally adjusted index of the of boots and shoes in this district was reflected in volume (square feet) of residential building con- the Massachusetts employment figures, in which tracts awarded in this district stood at 25.7 per the largest percentage decrease in employment cent of the 1923-24-25 average, as compared with was reported for the shoe industry. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C) 2 MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON January 1, MONEY AND BANKING Money rates in the Boston open money market strengthened recently. This upward movement in money rates was led by United States Treasury bills. The most recent issue of these bills, those dated December 20, was sold at an average yield of .74 per cent. This compares with a yield of . 10 per cent on October 4, since which date there has been a progressive increase. The current rate of .74 per cent compares with .09 per cent for a similar issue a year ago. A like tendency has been communicated to other parts of the money market. For example, three increases took place jn the asking rate for 90-day bankers' acceptances between November 9 and December 1, bringing the rate on the latter date to five-eighths of one per cent from the level of one-quarter of one per cent which had prevailed during September and October. This rate compares with three-eighths of one per cent, which was in effect in December, 1932. Brokers' commercial paper has also felt the stronger undertone, now being quoted at 1¼-1½ per cent, with a declining volume of paper moving at the latter rate. Total deposits of the reporting member banks in Boston stood at $807,000,000 on November 22. A month later, on Decembe·r 20, they amounted to only $777,000,000. Of this decline $5,000,000 was in net demand deposits; $16,000,000 in time deposits and $9,000,000 in United States deposits. During the same period reserve balances dropped $26,000,000. Relatively less contraction took FEDERAL RESERVE f'LUCTUATION OF place in loans and investments which in the aggregate dropped only $13,000,00·o. Commercial loans alone declined about $12,00G,OOO, while collateral loans, on the other hand, increased $8,000,000. United States securities declined $1,000,000 and other bonds and stocks dropped $7,000,000 . Outside of Boston the trend was not substantially different. Total deposits in the reporting member banb in eight cities dropped from $496,000,000 to $493,000,000. Time deposits increased, ridng about a million dollars during this period, but the gain in this class of deposits was offset by a $3,000,000 drop in demand deposits and a $1,000,000 drop in United States deposits. Loans and discounts during that period dropped $4,000,000, while total stocks and bonds increased $1,000,000. During December there occurred a sharp increase in the total earning assets of the Federal Reserve Bank of Boston due to purchases of acceptances in the open market. Holdings of member bank discounts and of United States Government obligations remained unchanged. Total cash reserves, which reached a high point during November, declined rapidly in December, reaching a comparatively low point on December 13, at $255,000,000. The following week they rose to $264,000,000. The seasonal demand for currency resulted in a sharp increase in the volume of Federal Reserve notes outstanding. Member BANK 1931 .. ~/ BOSTON 1932 1933 ~NOTES IN CIRCULATION . \,. \ •• __ .... OF PRINCIPAL ITEMS .......... . --. _______.:-.,,,:~.:.::.: _._ ' .:..... .,.TOTAL DEPOSITS •·······-·••"··:- Total earning assets exp anded moderately between October and November, increases occurring in Government securities, loans to member banks, and acceptances. The expansion in the last two items was the first increase in these groups since the first quarter of 1933. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1934 3 MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON bank reserve deposits fluctuated to a somewhat less degree. The result of these changes in the reserve position of the Federal Reserve Bank of Boston resulted in a reserve ratio of 64.3 per cent on December 20, as compared with 71.7 per cent on November 22. A group of 61 mutual savings banks located throughout New England report their deposits monthly to the Federal Reserve Bank of Boston. These 61 banks represent about half of the total mutual savings deposits in the district, and are therefore a reasonably good sample of the trend in such deposits. Month by month these mutual savings deposits declined throughout the year, until on November 30 they were at the lowest point since May, 1930. An encouraging factor in the mutual savings bank situation, however, is the substantial gain in the number of accounts on the books. These accounts reached their lowest level in J une, 1933, followed by a gradual improvement from month to month. This improvement was due not only to the large number of new accounts opened, but to a substantial reduction in the number of old accounts closed each month. T he contrasts and extremes which characterized the year 1933 are perhaps most clearly indicated in the movement of check payments. T he volume of business and financial transactions, as t hus measured, reached a peak in J uly. After July business activity appeared to decline. The following table shows the principal changes which have taken place in this district over the period of the past twelve months. MONEY 1929 1930 Total Deposits $777 +18 + 2.4 +24 + 2 .9% + 37 .5 246 184 44 308 +22 -13 -2 ~16 + 9.8 6.6 4.3 4 .9 Total Loans and Investments 782 -9 Reserve with F. R. Banks Percent of Reserve to Deposits Loans to New York Brokers Loans to Other Brokers Bank Strain 23 20 61 .0% OUTSIDE: Member Banks in 8 Cities Net Demand + U. S. Deposits 248 Time Deposits 245 Total Deposits 493 Reserve with F. R. Bank Percent of Reserve to Deposits 40 8.1% Commercial Loans Collateral Loans Real Estate Loans Bonds and Stocks Owned 1933 Since the middle of November there has been a tendency toward hia-her rates for prime commercial paper, as evidenced by the two increases noted on the chart. Sourc, of data-F1d1ral Rcser,e Bank of New York. + 4 - 1 + + 3 + .6 +16 + .2% + 66.7 + 7.3 14.2 2.4 2.7 Total Loans and Investments 506 -19 1 2 55.6% Total Earninfi1: Assets 192 1.6 .4 3.6 + 1 -·5.4% FEDERAL RESERVE BANK OF BOSTON: Loans to Member Banks 7 - 8 Acceptance Holdings 27 +25 U.S. Obliiations 158 +61 53.3 +1250.0 + 62.9 +78 + 68.4 Total Cash Reserves Reserve Ratio 264 64.3% +29 -8.6% + 12.3 Federal Reserve Noter Total Deposits 235 176 +35 +54 + + 17.5 44.3 * -3 Contingent Liability on bills bought for foreign banks "' Less than . 5 OF LOANS TO DEPOSITS-N.E. BANKS COMPAR ED 1932 + 360.0 - 31.0 -8 -15 -2 + 6 Loans to New York Brokers Loans to Other Brokers Bank Strain 1.1 +18 -9 -5% 101 91 82 232 DISCOUNTS WITH FOR SELECTED N. E. MEMBER 1931 1932 BORROWINGS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 88 11.3 % Commercial Loans Collateral Loans Real Estate Loans Bonds. and Stocks Owned RATIO RATES 1931 :rIRST FEDERAL RESERVE DISTRICT BANK CREDIT SITUATION (Amounts in Millions of Dollars) Gain(+) or Loss(-) Dec. 20, 1933 In One Year BOSTON: Member Banks Net Demand + U. S. Deposits $617 + +53 9.4% Time Deposits 160 -35 17.9 FROM 19 3 3 BANKS F. R.a - BOST ON A further easing occurred in the ratio of loans to deposits during the first two weeks of December in the New England member banks, while at the same time borrowings from the Federal Reserve Bank of Boston were somewhat greater. 4 January 1, MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON NEW ENGLAND INDUSTRIAL CONDITIONS Carloadings :-During the first nine w.eeks of Building :-The total value of new constructhe fourth quarter of 1933 total carloadings in this district amounted to 240,343 cars, compared with 217,447 in the corresponding period a year ago. This increase of 10.6 per cent in total carloadings was principally distributed among the following classes of shipments: live stock, coke, forest products, and merchandise, l.c.1., and miscellaneous carloadings. The volume of ore shipmen ts was in approximately the same amount as in 1932, while grain and coal shipments showed a tendency to decline during recent weeks, compared with the same period a year ago. The five-week average of merchandise, l.c.l., and miscellaneous carloadings, which attained a peak for 1933 in August, showed a decline of some 1000 cars per week during September, and increased during October and November. The increase in merchandise, Le.I., and miscellaneous carloadings during ovember was contrary to the usual seasonal expectations, since the normal October-to-November tendency in these two classes of freight shipments is to decrease approximately eight per cent. Consequently, the seasonally adjusted index of merchandise, l.c.1., and miscellaneous carloadings showed a gain of 9.3 per cent over that for October, and a gain of about 17 per cent over the adjusted index for November, 1932. The weekly average for merchandise, l.c.1., and miscellaneous carloadings for November represents an increase over January, 1933, actually the low point in the average number of carloadings during the depression, of 21.7 ptr dent. It is the first time that the November average of merchandise, l.c.l., and miscellaneous carloadings has exceeded the preceding January average since 1929, despite the fact that January normally represents the low point in· the volume of shipments. tion contracts awarded in New England during November was $12,292,000, an increase of 3.8 per cent over the October value and 82.4 per cent greater than the value in November, 1932. During the past two months the total value of new contracts has been sustained principally by the amount of new public works construction contracts awarded. In October new public works accounted for 47 .9 per cent of the total value, while in November the value of this class of construction comprised 54.5 per cent of all new contracts. While during the three months, September through ovember, the principal classes of construction showed a greater value of new a wards than in the corresponding period a year ago, only public works construction showed a tendency to expand, the other types reflecting the seasonal tendency to decline. The volume of new residential contracts, on a square-foot basis, after improving steadily between March and September, showed a declining tendency, after seasonal allowances had been made, in October and November. Although improving between March and July, the index of commercial and factory building declined substantially in August, and remained relatively stable thjl"ough November. On a daily average basis, the value of new contracts awarded during the first half of December was larger than in any period during the current year, with the exception of August. Among the principal classes of construction the only decrease since November occurred in new residential building. Non-residential building, on a daily average basis, showed the greatest volume of new awards during 1933, while public works and utilities recorded a gain of 5 2 .8 per cent over November in the daily average value of new contracts. CARLOADINGS MERCHANDISE AND COMPARISON OF CHECK PAYMENTS MISCELLANEOUS 800 JAN. FEB. NOVEMBER 1933 COMPARED WITH NOVEMBER 1932 BOSTON BANGOR BROCKTON FALL RIVER _ _ _ _ _ , HARTFORD HOLYOKE LOWELL LYNN MANCHESTER NEW BEDFORD NEW HAVEN PORTLAND PROVIDENCE SPRINGFIELD WATERBURY I 0'4 -Y"""------''----'-----'------L-----'--'--_,__---'---'---..._,,.-.,.,...., Merchandise, l.c.l., and miscellaneous carloadings in New England during recent weeks, while showing a tendency to confirm the seasonal trends, have not declined as rapidly as in previous years. Source of data- A mericaK Railway Associalio•. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ---..-~ ~ - ~ ~ ~~ WORCE"STER +2o'l'. -30% -2SJ"I. -1 0·~ o +20 Three cities, Bangor, Hartford, and New Bedford, showed increases of over 18 per cent in the volume of check pa yments during November, 1933, compared with November, 1932. Only Ba ngor, h owever, had a iireater volume of check transactions during the first 11 months of 1Q33 than in the same period of the preced ing year. 1934 Employment:-For the first time since March employment and payrolls in 2403 industrial manufacturing establishments in New England reported a decrease in November from the preceding monthly totals. This decrease was largely of a seasonal nature, as was reflected by the comparison with November, 1932, indicating that while employment in November, 1933, was 20.9 per cent greater, payrolls were 31.2 per cent above November, 1932. At the middle of October employment was 24.4 per cent greater than in October, 1932, and payrolls were 31.0 per cent higher than for the same month a year ago. In Massachusetts the total number of wageearners employed in the 1142 representative manufacturing establishments reporting to the Department of Labor and Industries was 198,339 for the week including or ending nearest November 15, a decrease of 9711 employees, or 4.7 per cent, compared with the number employed in the same establishments during the corresponding week in October. The amount of the combined weekly payrolls for all manufacturing establishments reporting was $3,625,464 in November, a decline of $242,362, or 6.3 per cent, from the amount for October. The records show that for the eight years from 1925 through 1932 the averages of the October-to-November changes were a decrease of 2.3 per cent in employment and a decrease of 3.7 per cent in the amount of weekly payrolls. November was the first month to show a decrease in employment after seven months of improvement. The number employed in November this year was greater by 18.7 per cent than in November, 1932. The amount of the payrolls was 28 per cent greater than in November, 1932. The combined returns for the boot and shoe establishments showed marked decreases both in COST Of" LIVING IN employment and in the amount of the payroll, which would have been more marked had not the final settlement of the labor controversy in Brockton resulted in greatly increased production in the factories in that city. The decreases in shoe centers other than Brockton may be attributed to the usual seasonal slack period. In the leather tanneries there were also large decreases due to seasonal factors. Various changes occurred in the cotton goods industry, resulting in slight decreases for the industry as a whole. In the woolen and worsted goods industry large decreases occurred in a number of leading cities, especially Lawrence , so that the industry in the state showed a marked decline in November. In the other major industries the percentage changes were small and varied. The 219 selected manufacturing plants regularly reporting to the Commissioner of Labor for Rhode Island had 57,799 workers employed at the end of November, compared with 62,744 employed at the end of October and 64,979 employed at the end of September. The same plants had 52,304 employed at the end of the same month a year ago and 52,873 at the end of November, 1931. The numbers employed by these establishments were 10.5 per cent greater than at the end of November, 1932, and 9.3 per cent greater than at the end of November, 1931. Decreased numbers employed were reported in practically all groups, with the exception of cottons. Strikes which continued in the silk group were noticeable in the large percentages of decrease in that group over the two preceding months and the same month of the two preceding years. Fewer workers were reporte·d employed in November by the building construction group, while larger numbers were reported by the other construction group, chiefly engaged in road construction and similar projects. MASSACHUSETTS VALUE OF BUILDING BY PRINCIPAL ITEMS 110 5 MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON 1930 1931 1932 1933 1930 NEW 1931 1932 1933 80 1926 1927 1928 CONTRACTS AWARDED ENGLAND 1929 1930 1931 1932 1933 rvt----+-----+---+-+---- + - - - + - - + - - --+-----1 ~ ~ Cl i 00·~--+---+----.--·~!!-+--- + - - - ~- - --+-----+ ,f\ /!,, 50~--+---+----+;----+--+----+---+---1--,: It l~ r II \ j ~ :'\ l Ji ii A• /A.i,.l ' •·-MONTHLY VALUE -12 The changes in the various items comprising the cost of living index for Massachusetts during November were slight, resulting in no appreciable change in the total index. Source of data-Massachusetts Department of Labor aH.d Indu.stries. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r,'ONTHS I MOVING I AVERA~E The trend in the 12-months' moving average of new building contracts awarded in New England, after remainin$" steady in April and May, again moved upward m June. Source of data-F. W. Dodie Co~Poration. 6 January 1, MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON The Manufacturers' Association of Hartford County reported that employment in 84 establishments on December 1 was 78.0 per cent of the January 1, 1929, number, and man-hours operated in terms of the January 1, 1929, rate were 56.2 per cent. The percentages for employment and man-hours on November 1 were 77.6 per cent and 56.8 per cent, respectively. Boots and Shoes:-Total estimated boot and shoe production for this district in November amounted to 6,850,000 pairs, a decrease of 32.8 per cent from the October output. This decline compared favorably with similar October-toN ovember changes in the four preceding years, 1929-1932, which showed percentage decreases of 35.8, 39.9, 32.5, and 37 .7, respectively. The volume of boot and sh.oe production in November, 1933, was 1.8 per cent less than in ovember, 1932. For the first 11 months of 1933 the total production of boots and shoes in New England amounted to 111,076,000 pairs, compared with 106,825,000 pairs in the preceding year, and represented the largest output since the first 11 months of 1929. The seasonally adjusted index of boot and shoe production decreased in November for the fourth successive month. The decline from the highest level of boot and shoe activity attained in July to the November rate of production was more pronounced because of the high rate of activity prevailing during the three months from May through July, when production averaged more than 30.0 per cent above seasonal expectations. Textiles:- November reports on the consumption of raw cotton and wool and employment in selected textile establishments indicated that the volume of textile production in November was lower than in October. However, after full allowances had been made for seasonal variations, a less pronounced decrease occurred beSHOE TOILET SALES BOSTON DEPARTMENT STORES MONTHLY INDEX AND 12 MONTHS MOVING z:: ~ ~ 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 IA.'l.'I 19::>.4 19::>c; 19::>n 19::>7 19::>e 19::>9 19::10 1931 193::, 1933 ~ 2251------+--+--t-----ll---.l-----ll---+---t--------t---1 "t I 1 1 j ~l :!1 ~ / I,, ,' J. ,~, r::; L: )1 w !Yi "'-: f.., fl ! i LI :;\ J ..JJ.+.i-•"::i j \/ I\/ i lj nt-~Jj ~ 7 ! li n:r I\!\/ \I', V \;\/\I\;!:; :1 \l' ..,,.,~: "' ,..,. J,,.. }. t-1 I I : I 'i) I ,1, 1 ~ v vv v ~ I I I ~ ' I \J I i1-t\ ! 2001------¼-----lt---+--l----◄t------------;-----t :t -~ I~ • ~ ~ I.: ~ "> 1• !,j,!_,r'T 1751---w---lt--t-----rt---tt---t-----J.f---'t-----!t----t----t -~ 150 ~ 12St--J-t---tt--tj---JT--!t---rt-=~_.._-/-'P-..tff-,- t J - 7 ~ !, i . 100 .N.::;;, : ~,J...,J ~JV v..JV .1 I ~ / 1.."' / \v. rr ~ 1-J V\.,./ Vy V --.vi ~J' SOl--~---lt-----+--+----lt----+---+--t-----+----1-L--#~---+.~1-+IJi---l 1-- 7 5 t - - - - + - - + - - t - - - + - - + - - t - - - - - - - - t - ---t---t--------t-+---t 25 ~ 25 ~ ~ 19::>::1 AVERAGE I SOl-----lt----+--+------<!--1!---¼--t-----+--+--t-----1 1 .._ 300 SALES DRUGS ~ 2 7 5 t - - - + - - + - - t - - - + - - + - - t - -- +- -+--t--------t---J ~ ~ 250f---+--+--f---+--+---,l---+---+--t----+--; § I 25t--_ _ _ _,___ _ _ _1,_.._,._- - + - - + - - - + - - - - < ·~ ..... AND I 75t---+- - + - - t - - - l - - - - + - - t - - - + - - l - - t - - - + - - - I "t ~ ARTICLES BOSTON DEPARTMENT STORES MONTHLY INDEX AND 12 MONTHS MOVING AVERAGE ~ :I.. tween October and November, 1933, than was recorded in the month-to-month changes in the three preceding months. Practically no change took place in the volume of raw cotton consumed during October and November, the amounts being 83,422 and 83,187 bales, respectively. Since the number of working days in October and November was identica], the seasonally adjusted index of cotton consumption showed a variation of less than 0.4 per cent between October and November. The average number of spindle hours operated per spindle active was 7.4 per cent less in November than in the preceding month. A similar decline was recorded in the volume of raw wool consumption, which was 7.3 per cent smaller in November than in October. Since such a decrease is contrary to seasonal expectations, a decline of 10.3 per cent took place in the adjusted index of wool consumed in November. During the four months between June and October a decline of 44.6 per cent, or over 11 per cent per month, had been recorded in the index of wool consumption. Employment in 248 selected textile establishments in Massachusetts and Rhode Island reported a reduction of 2.8 per cent in the number employed in November as compared with the preceding month. The only branch of the textile industry to report increased employment in November was the dyeing and finishing group, with a gain of 32.8 per cent over the number employed in October. The largest decline occurred in the silk and rayon establishments, with 19.4 per cent fewer employed in November than in October. Woolen and worsted establishments reported a decrease of 13.8 per cent in the number employed during November in comparison with the previous month. : https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis •···MONTHLY INDEX -I~ MOS MOV AVE. 1 1 ~ 50f---+--+--I---+--+--+----+--+--+----+--; f---+--+--l----+--t---+ 0 - - - - ~ - - ' - - - ' - -- ~ ----MONTHLY INDEX -12 MOS MOit A V L ~ ~ - ~l_ _~ l~I-~~ 1934 7 MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON RETAIL TRADE Through December 28 dollar sales reports had been received from 4 78 retail concerns in Massachusetts, covering the period December 1-15, 1933, as compared with the same period in 1932. Of these 478 concerns, 225 reported an increase, 192 reported a decrease, and 61 reported approximately no change. The total dollar sales for the first half of December, 1933, amounted to over $8,000,000, an increase of 5.2 per cent over the December 1-15, 1932, volume. The table opposite shows detailed data for each of the eight major groups. Connecticut Department Stores . .. . . .... Maine Department Stores . . ...... . . Massachusetts Department Stores ... . New Hampshire Department Stores ... . Rhode Island Department Stores ... ... . Vermont Department Stores . .... . ... . . Boston Department Stores . . ..... ...... New Haven Department Stores . ........ Providence Department Stores ... .. . New England Department Stores . ...... . . . . RETAIL SALES IN MASSACHUSETTS Comparison between December 1-15, 1933, and December 1-15, 1932 PerNumber centage Total Number Number Reporting Ch1:tnge GROUP Number R eport ing Reporting No m Reporting Increase Decrease Change Dollars F ood ....... . .. 58 22 26 10 -0.8% General Merchandise. + 3.1 24 36 6 66 Autom otive .... 50 28 20 2 +16.8 Apparel . . . ... . 21 + 5 .0 9 65 35 Furnit u re and + 0.2 H ousehold ... 14 20 39 5 Rest aurants a nd 28 E ating Places 5 16 7 - 3.2 Lumber ...... . 18 20 1 + 0.7 39 21 61 51 +10 . 1 All Other ..... . 133 TOTAL ... . ... 478 192 61 + 5.2 225 SALES CONDITIONS 1932=100 Month of November 1930 1931 1932 1933 139 122 100 96 133 109 100 96 146 123 100 89 141 123 100 92 140 116 100 96 151 127 100 81 148 125 100 92 141 127 100 103 140 116 100 106 144 122 100 97 January through November 1930 1931 1932 1933 133 127 100 96 135 123 100 96 140 128 100 89 144 137 100 92 138 123 100 96 143 132 100 81 141 128 100 87 133 127 100 95 138 123 100 96 141 128 100 90 CREDIT CONDITIONS Percentage of Regular Accounts Outstanding at the First of November Collected during November 1930 1931 . .... . ......... . Boston Department Stores . . . . . . . . . . . . . . . . 41.1 % 43.4% 50.2 New Haven Department Stores .. . . . ... . .......... . ..... . .... . 53 . 1 Providence Department Stores ... .................. .. . . . . . .. . . 46 .7 45.6 42 .7 New England Department Stores ... . ... . ..... . . . . . . . ... . .... . 43 .8 SALES BY DEPARTMENTS-NEW ENGLAND 1932 = 100 Month of November 1930 1931 1932 181 127 100 Silk and Velvet Dress Goods ............. 120 123 100 Woolen Dress Goods ........ ......... 100 191 133 Cotton Dress Goods . . . .. . ... 141 100 Jewelry . ....... ..... . .... . . . . . . . . . . 168 132 100 Men's Clothing .. .... . .. . . . . . . . . . . . . 178 153 116 100 Men's Furnishings .... .... . ... . ... . ... 127 100 Boys' Wear . . ....... .. . ......... .. .. 158 Women's, Misses' and Juniors' Ready144 127 100 to-Wear .... . . . . . ......... . . . ........ Women's, Misses' and Juniors' Ac143 119 100 cessories ...... .... ...... ... .... .... . . 126 100 Millinery .................. ............ 115 123 100 Women's and Children's Gloves . . ........ 154 132 114 100 Corsets and Brassieres . . . . . . ... . . ..... .. 160 125 100 Women's and Children's Hosiery .. . . ..... 120 100 148 Knit Underwear, including Glove Silk .. .. 118 100 140 Silk and Muslin Underwear .... . . . . ..... 122 100 Women's and Children's Shoes ... .. . . .. . . 152 127 Furniture .......... . .... . ... .. ... ... . . 140 100 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1932 47.5% 48.8 43.5 45 .2 1933 46.1% 48.5 44.8 45.4 DEPARTMENT STORES 1933 112 140 112 97 104 98 98 January through November 1930 1931 1932 1933 100 178 139 86 100 110 124 133 100 152 92 200 78 137 100 149 100 96 157 135 147 127 100 89 100 93 150 132 97 147 135 100 89 100 104 101 97 107 106 92 101 135 141 138 130 142 149 123 135 141 123 128 135 119 123 128 119 122 128 100 100 100 100 100 100 100 100 100 89 90 90 91 85 92 89 91 91 78 8 MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON Jan. 1, 1934 SUMMARY OF BUSINESS CONDITIONS IN THE UNITED STATES FACTORY EMPLOYMENT UNITED STATES 110 1928 \t't 100 -~ 1929 1930 1933 '~ \ N ~ 80 ~ ..._ 70 r\ I' -\ - I - 5- ~ 1932 ___,, "" -~ 90 ~ Cj 1931 V 50 INDUSTRIAL PRODUCTION UNITED STATES 130 1928 ~120 -~ 110 ... 1- ·'l' ~ - 1929 A. 1930 19.31 ,~ \ \.. Q .... 7 ~ 5 A I\ I \ '\n,_ ... 8 6 1933 /- \ 90 ~ 1932 \ r- ~ - 4 Total volume of industrial production, after declining further during October, showed little change during November and the first half of December. The amount of construction undertaken continued to increase, reflecting an expansion of public works. Production and Employment:-Output of basic commodities, as measured by the Federal Reserve Board's seasonally adjusted index, was 73 for N ovember, on the basis of the 1923-1925 average as 100, compared with 77 for October. This total for the month reflects the maintenance during November, with allowance for usual seasonal changes, of the level reached at the end of October, after a continuous decline during the preceding three months. Activity at steel mills, after declining from 44 per cent of capacity in the early part of October to 25 per cent in the early part of November, subsequently increased to a rate of 34 per cent in the third week of December. Output of automobiles, which was curtailed sharply in November in preparation for new models, also increased somewhat in the early part of December. Consumption of cotton by domestic mills was in somewhat smaller volume in November than in the preceding month, and activity at woolen mills decreased. At shoe factories production showed a decline larger than is usual at this season. Volume of employment and payrolls declined from the middle of October to the middle of November by somewhat more than the usual seasonal amount. The Board's seasonally adjusted index of factory employment for November was 72, as compared with 74 in October and 57 at the low point in March. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, showed a further substantial increa,se in November. This increase, at a season when construction contracts usually decline, reflects a growth in the volume of public works. Distribution:-Shipments of commodities by rail decreased in November, as compared with October by an amount somewhat smaller than is usual at this season. Sales of merchandise at department stores declined, contrary to seasonal tendency, while sales by variety stores showed little change. WHOLESALE PRICES UNITED . STATES ~9~;:;;;:~~~d~--+--+--~ ~ 8 Wholesale Prices :-Wholesale commodity prices, as measured by the weekly index of the Bureau of Labor Statistics, advanced from 70.9 per cent of the 1926 average in the first week of November to 71.7 per cent in the third week and then declined to 70.9 per cent in the week ending December 9. These movements reflected chiefly changes in the prices of farm products and foods. Prices of hogs declined considerably after the middle of November, owing partly to seasonal factors. Foreign Exchange :-The value of the dollar in the foreign exchange market advanced from a low point of 59 per cent of its gold parity on November 16 to about 64 per cent for the period from November 27 to DeceJllber 20. 30C.......,"'---'-----'---'-----'---'---"--'-' BUILDING CONTRACTS AWARDED UNITED STATES • J60 1928 f929 930 193 93 1983 -~ 12 ... ·';' 1oo1----1.---~~,--.+--+---1-----1 ~ ~ 80f----t---\--t----'"-.:no.-------t- - J - - - - - - j ~ .... 50,1 - - - - + - - - + - --t-- , c - t - - - - , - - - 1 ~40,e---+---+---l--'-.:--~----l--+i Cj ~ 20 O' - -- . , _ _ - ~ - ~ - ~- ~ -- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Credit:-Between November 15 and December 20 there was the usual seasonal increase of about $195,000,000 in the demand for currency by the public. This currency demand was met largely through the purchase of $100,000,000 of acceptances by the Federal reserve banks and the issuance of additional bank notes by the national ban.ks. Reserve balances of member banks showed little change for the period, and continued to be at a level of about $800,000,000 above legal requirements. Total loans and investments of reporting member banks in leading cities declined by $160,000,000 between November 15 and December 13, reflecting chiefly sales of acceptances to the reserve banks and a reduction in holdings of investments other than United States Government securities. Loans on securities, chiefly to brokers in New York City, increased by $40,000,000, while all other loans, which include holdings of acceptances, declined by $125,000,000. Short term money rates advanced slightly during the period.
@FedFRASER