Survey of Current Business January 1932
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JANUARY, 1932 SURVEY OF CURRENT BUSINESS UNITED STATES DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE WASHINGTON VOLUME 12 NUMBER 1 Looking to business What is ahead? What demand will there be for your products this year? What price will you pay for raw materials? Will the results of your operations be written in black or in red ink? A score of questions; many answers. The correct reply will be made only after consistent, insistent, persistent research, covering not only your own specific industry but also related undertakings and general economic conditions. The correct reply will be individual. Your prediction will differ from that of Jones, the textile man, or Brown, the steel man. It may differ decidedly from that of your closest competitor. It may differ even though you use the same foundation data-the SURVEY OF CURRENT BUSINESS, for example. Therein lies Progress. Independence of thought-after studying the facts of production, distribution, employment, finance, from all angles and all points of prejudice I Independence of action-such as discards old products, creates new industries! Financial independence! Volume 12 JANUARY, 1932 Number 1 WEEKLY DATA THROUGH DECEMBER 26, 1931 MONTHLY DATA THROUGH NOVEMBER SURVEY OF CURRENT BUSINESS PUBLISHED BY UNITED STATES DEPARTMENT OF COMMERCE WASHINGTON CONTENTS Page Monthly business indicators ..•. ------------------------------------ ________________________ ------ '1 Business situation summarized------______ ------------------------ ____________ ------------------ 3 Finance __ ------------------------ ______ ------------------------ ________________________ ------ ______ ------ 4 1931 in comparison __________ ------------- ______ ------ ______ ------------ __________________ ------------ 6 Commodity prices ______ ------------------ ________________________________________________ ------______ 7 Employment___________________________________________________________________________________________ 8 Domestic trade________________________________________________________________________________________ 9 Foreign trade ------------------------------ ________________________ ------------------------------------ I 0 Transportation-------______ --------------------- ____________ ------------------------------------______ 11 Construction ______ ----------------- __________________ ----------- ________________________ ---------______ 1'1 Agriculture _______________________________________ -------________________________________________________ 13 Iron and steel industry----------------------------------------------------------------------------- 14 Chemical industries _________ ------------------------------------ ___ ------ _____ ---------------------- 15 Automobile and rubber industries.... ---------------------------------------------------------- 16 Textile industry______ ------------------------------ ______ ------------------------------ ______ --------- 17 Food industries --------------- ________________________ ---------------------------------------- ,....... 18 Forest products industry------------------------------------------------------------- ______ ------- 19 New and revised series _________ --------------------------------------------------------------------- 20 Weekly business statistics _______ ------------------ ______ ------------------------------------------ 21 Monthly business statistics (Index) ------------------------------------------------------------ 22 Subscription price of the SuavBY or CUBBBN'f BUSIN&es 11 $1.50 a year which Includes the 12 monthly numbers, the annual 1upple· ment, and the 52 weekly supplements; singlecopl81 (monthly),l0cent8; annual supl:'lement, 25 cents. Foreign subscriptions without weekly supplements, $2.50; single copies (monthly Issues ),lncludini postage, 14 cents; nnnual supplement, 36 cents. Make remit· tancea only to Superintendent of Documenta, Washington, D. C., by postal money order, express order, or New York draft. Currency at eender'l risk, Postage stamps or foreign money not accepted 93114-32--1 1 2 SURVEY OF CURRENT BUSINESS January, 1932 Monthly Business Indicators 1923-1925=100 INDUSTRIAL PRODUCTION INDUSTRIAL PRODUCTION 180r------.------.------.------,-----~ 100 100 60 FACTORY EMPLOYMENT FACTORY PAYROLLS 140 [ADJIJSTEo* 100 100 70 40 TOTAL FREIGHT CAR LOADINGS CAR LOADINGS L.C.L. 120 100 100 eo 60 DEPARTMENT STORE SALES 120 100 80 100 60 VALUE Of IMPORTS 150 100 100 I I i 50 I I BANK DEBITS OUTSiDE NEW YORK CITY BUILDING CONTRACTS AWARDED I 2.00 200 I ; Il 150 \50 ! I 100 I 50 50 I 1927 1928 1929 1930 19.31 1927 1925 1929 1930 1931 I * ADJlJSTMENT FOR MIMBER OF WORKIN6 OAYS AND SEASONAL VARIATION I January, 1932 SURVEY OF CURRENT BUSINESS 3 Business Situation Summarized EVELOPMENTS in the general business situa Employment in the retail trade group has continued D tion were mixed in November and while the the seasonal expansion which began in September, but trend continued downward, there were a number employment decreased in all other groups, excepting of exceptions in individual industries and the rate rubber products, in November. After adjustment for of recession was less marked than for the past several seasonal factors, the indexes for the automotive and months. December is normally a dull month and food product industries advanced. Factory employ recent weeks have brought some additional reduction ment and pay rolls continued downward. in productive activity. Retail trade has continued to Movement of traffic on the railroads declined in expand and, in so far as department stores are con November, although the drop was of only slightly more cerned, the November increase was of about the usual than seasonal proportions. Total loadings for the seasonal proportions. Industrial production has re month were 19 per cent below last year and the etunu ceded somewhat further following the trend maintained lative total for the 11 months was nearly one-fifth since the culmination of the spring rise, but the output below the same period of 1930. Loadings of l. c. l. of manufacturing industries alone was as high as in merchandise were off by the usual seasonal amount, October. Mineral production was lower, with par and to date such loadings have averaged less than 10 ticularly large reductions in the output of iron ore and per cent below a year ago. The drop in foreign trade coal, offset partially by an increase in the petroleum in November was of greater than seasonal proportion; output. Among the manufacturing industries the exports were lower by the usual seasonal amount, but seasonally adjusted indexes for iron and steel, automo the fall in imports was in excess of normal. biles, and tobacco manufacturing were higher, while Financial conditions have improved somewhat since the indexes for the leather and food products industries October with a drop in bank failures and a return flow remained unchanged. The decline in the general of hoarded currency to the banks. Wholesale prices index as compared with a year ago was 14 per cent, were maintained at the October level and the general somewhat less than the drop in the preceding month index has varied less than 3 per cent since the rapid as well as for the cumulative decline to date of over 15 decline was arrested in June. per cent. Building activities have slumped further and the fall in the final quarter of 1931 was pronounced. MONTHLY BUSINESS INDEXES .. c-~~===-~~=-~~d:::~;;::~e- :~ii*r.~]ll ~~.~:~t,:~::::~~~~~;~~4~-;~~~:,II~ ~!ifl ~=~.:: 1-~~ -I ~--,--,,--,---1 ., II ... ~ ~ ---- . I I .. I II I "I ·i ' II- ir fll a 1 - ~ ~ ! Total : Merchan- I !i ! li ~~ 11 oo-= :g ... ~ ] c.- :: I! 1,1 dlse,Le.J. 'i, . I I ce::; p t:s'; Ole • I .. B'CI ... ., ' ' " ! I' u ~! ... .s I !J.. ::1 i ; ::r.S 1,1 !l ~ :.I 0>-= =-~ ~~ ~~~~n ~, ~-~ ~~~ ~~ ~ ""=~ =""101 Yearandmontlt =- , ::r~ ".t1 .. ::r .. ~I .; ,?,' I,_ '! I, I ;c;;: 1· ~-:, -"g ~ 01 1 11 I ...... 01 ":c' Q...., 'I {! .'Z I l I' ,, "' I -;:: ., .c 01 1 1 ~ il ~! I f J i =~ il ~ ~ 11 ~ I ~ i ~ ~ il, ~ i :,~ 1 : !• ~ ;I ] ~8 ~ ~~ ~ 11 : i ~., 1 ~ = 11 ~ ~ lj = I ~ = ~ 11 H ..a :i ~ 1 :a :1.. j 5 ~ ~ I ... fil;o "" _!:'_JL.. ...!'__" _ __!.__ ..,__II __ ., _I_ I _ < _J ___., ·--·----' .... -~ -----·---'----'II = ' ~-· = 1---'----~~"" Monthly average 1923-1925=100 a\·cirage ;~~-~:nthly' 1926=100 I 1 1 Adjusted for seasonal variation. ' Adjusted for number of working days. 4 SURVEY OF CURRE~T BUSINESS January, 1932 Finance-Credit and Banking HE general banking and credit statistics of No diseounted by the reserve banks remained practically T vember reflected a steady easing of a situation unchanged during November but rose sharply after which had been featured during part of the previous the middle of December when the payment of the month by heavy gold withdrawals and by firming Treasury overdraft reduced the Government security money rates. Money in circulation assumed only holdings of the system. seasonal proportions in contrast with the heavy with Money in circulation increased at a relatively slow drawals of currency during Oetober. Bank failures rate during November but seasonal needs raised the assumed much smaller proportions than in the imme total to a new high record of $5,733,000,000 during the diately preceding months. third week of December. In addition to an evidence Liquidation of bank credit continued throughout of a decline in hoarding the month's gold movements November and the first half of December but at a reflected an increasing degree of confidence in the somewhat less marked rate