AUGUST 1937 SURVEY OF CURRENT BUSINESS UNITED STATES DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE WASHINGTON VOLUME 17 NUMBER 8 Manufacturers distributed one-fourth of their total product to indus- trial and other large users in 1935 ... 23 per- cent went to wholesalers and jobbers, 19 percent to retailers, and 17 percent to wholesale branches. Approximately two-thirds of all reporting manufac- turers sold exclusively through one major channel . nearly one-fourth of the plants sold directly to household consumers. Distribution expenses repre- sented 9.4 percent of sales but was as high as 15 per- cent for one industry group. These facts are from the "Distribution of Manu- facturers' Sales", one of the reports issued as a result of the 1935 Census of Business. A summary of this report is presented in the article on page 12. UNITED STATES DEPARTMENT OF COMMERCE DANIEL C. ROPER, Secretary BUREAU OF FOREIGN AND DOMESTIC COMMERCE ALEXANDER V. DYE, Director SURVEY OF CURRENT BUSINESS Prepared in the DIVISION OF ECONOMIC RESEARCH ROY G. BLAKEY, Chief M. JOSEPH MEEHAN, Editor Volume 17 AUGUST 1937 Number 8 CONTENTS SUMMARIES AND CHARTS STATISTICAL DATA—-Continued Page Business indicators 2 Monthly business statistics: Page Business situation summarized 3 Business indexes 22 Graphic comparison of principal data 4 Commodity prices 23 Commodity prices 5 Construction and real estate 24 Domestic trade 6 Domestic trade 25 Employment 7 Employment conditions and wages 27 Finance 8 Finance 31 Foreign trade 9 Foreign trade 37 Real estate and construction 10 Transportation and communications 37 Transportation 11 Statistics on individual industries: SPECIAL ARTICLES Chemicals and allied products 39 Distribution of manufacturers' sales 12 Electric power and gas 41 Sales of chain drug stores 16 Foodstuffs and tobacco 41 Fuels and byproducts 45 STATISTICAL DATA Leather and products 46 New or revised series: Lumber and manufactures 47 Table 28. Construction contracts awarded in 37 Eastern States, projects, floor space, and valuation, 1936 , 18 Metals and manufactures: Table 29. Construction contracts awarded in 37 Eastern States, valuation, public and private ownership, 1932-37 18 Iron and steel 48 Table 30. Classification, by industries, of new securities effectively Machinery and apparatus 49 registered with the Securities and Exchange Commission, 1933- Nonferrous metals and products 50 37 19 Paper and printing 51 Table 31. Finished cotton cloth, production and stocks, 1934-37.. 19 Rubber and products 52 Table 32. Tea stocks in the United Kingdom, 1913-36 20 Stone, clay, and glass products 53 Table 33. Production of manufactured tobacco, by classes, 1934-37. 20 Textile products 53 Table 34. Face brick, shipments and stocks, 1934-36 20 Transportation equipment 55 Table 35. Employment and pay rolls, Pennsylvania and Philadel- Canadian statistics 56 phia, 1935 and 1936 20 Weekly business statistics through July 24 21 General index Inside back cover Subscription price of the monthly and weekly issues of the SURVEY OF CURRENT BUSINESS is 31.50 a year. Single-copy price: Monthly, 10 cents; weekly, 5 cents. Foreign subscriptions, $3. Price of the 1936 Supplement is 35 cents. Make remittances only to Superintendent of Documents, Washington, D. C. 4514—37-—1 1 SURVEY OF CURRENT BUSINESS August 1937 Business Indicators 1923-25 = 100, except as noted INDUSTRIAL PRODUCTION RURAL SALES OF GENERAL MERCHANDISE 150 150 125 125 100 \ 100 Adjusted Adjusted 7 5 75 50 50 25 25 0 1 ! 11 i 1 0 1 I I 1 I I 1 11 i i I i 11 i i 11 i i i i 1 11 i i i 1 11 i 11 1 i i i i FREIGHT CAR LOADINGS DEPARTMENT STORE SALES 125 100 75 A djusted 50 25 0 1 1 1 1 1 1 I i 11i i 1i ii i i 111 i i i 1 11 i i i1 11 i 11 11 i i i i FACTORY EMPLOYMENT & PAYROLLS • CASH INCOME FROM FARM MARKETINGS Ad/us ted j^K*~*s 25 i 11 i ' i 11 i i 11 i i i i I i i i i i I 11 i i i 111 i i i 0 1 11 I 1 M 11111111111111111111111111111111111 CONSTRUCTION CONTRACTS AWARDED WHOLESALE PRICES 125 125 100 100 TOTAL (Adjusted) \ 75 75 T P/?O£>(/CTS 50 50 25 25 ***** 0 i i iT*ri i. 0 i i i i i i i i 111 i I i 11 i i 111 i i i I 11 i i i 1111 11 I 11 i i i FEDERAL RESERVE MEMBER BANK LOANS BANK DEBITS OUTSIDE NEW YORK CITY 150 150 125 125 100 100 75 75 z 50 50 Of 1 1 I 1 1 1 I i !,,,,, i,,,,, 1,,,,, i,.,, ,f o f i i i ii ii mill liMnliiMiliiMilimif 1930 1935 ^35 J936 1937 1930 1935 1935 1936 1937 ADJUSTED FOR SEASONAL VARIATION REVISED ^ REPORTING MEMBER BANKS 1929-31 = 100 1924-29=100 NOTE indexes are based on dollar figures, except industrial production, freight-car loadings, and factory employment DD 3039^ August 1937 SURVEY OF CURRENT BUSINESS Business Situation Summarized USINESS activity has been maintained at a rela- textile industries. Refinery operations remained B tively favorable rate through July, the recent de- high in July, but the weekly estimates of cotton cline having reflected principally seasonal influences. consumption indicated some moderation of textile mill Since seasonal tendencies were overcome a year ago by activity. the strong cyclical expansion then under way and by The number of persons at work in the manufacturing the stimulus afforded as a result of the payment by the industries dropped more than seasonally in June, partly Government of the adjusted compensation certificates due to labor disputes. The number of persons involved held by war veterans, relative gains over a year ago in disputes during April, May, and June was higher than narrowed in June and July. in the earlier months of the year, but this number The movement of the seasonally adjusted index of declined in July. It is worthy of note that the workers industrial output during June and July has been in- involved in labor disputes in the first 6 months of the fluenced to a considerable extent by the fluctuations year averaged less than 1 percent of the total number in the iron and steel industry. With the termination engaged in nonagricultural pursuits. Furthermore, at the end of June of the industrial dispute which tied these individuals were idle for a period of less than 10 up production facilities of an important sector of the days on the average, or little more than one-third of a industry, the output of steel rose sharply. Automobile month each. production declined in June, after seasonal adjustment, Retail sales of general merchandise have held at a and receded further in July. Declines in activity fairly even pace, after allowance for the normal seasonal have occurred also in some other important metal con- decline. Trade in farm areas has been strengthened suming industries but in others—machinery and rail- by the favorable prospects for this year's harvest, the road equipment, for example—manufacturing opera- benefits of which are flowing to farmers as the crop tions have been well sustained. Lumber output has movement gets under way. increased, although the use by wood-consuming indus- After 3 months of declining markets, stock prices tries has not kept pace recently with production, moved sharply higher in July, reflecting the relatively judging by the shipments from the mills. Among favorable pace of summer business, crop prospects, the the consumer-goods industries the June high light earnings reports covering the second quarter, and the was the rate of activity in the petroleum refining and reappraisal of the labor outlook. MONTHLY BUSINESS INDEXES Factory em Eetail sales, Foreign Industrial production ploy merit Freight-car value, trade, value, 9 Cash farm and pay rolls loadings adjusted * adjusted > income 3 Mer- ii Unadjusted 1 Adjusted > chan- Total dise, h I I. c. 1. 2 li 3 ! Year and month 21 C3 I- l 1! p a 3 c ji « 1929- Monthly Monthly Monthly average, 1923-25=100 31=100 Monthly average, 1923-25=100 average, average, 1924-29=100 1926=100 1929: June 125 127 116 125 127 114 105.7 111.2 109 105 113 127.4 116 115 133.8 126 85.0 94.0 95.2 1932: June _. 59 58 62 59 58 64 62.8 43.5 49 70 68 64.3 34 36 65.4 27 34.0 39.0 63.9 1933: June 91 92 83 91 93 85 70.7 48.1 61 68 67 65.7 36 40 65.7 18 52.0 70.0 65.0 1934: June 84 84 86 84 83 87 85.2 66.0 64 65 73 72.3 50 44 74.8 26 50.0 66.0 74.6 1935: June 86 84 97 87 85 99 83.7 67.4 64 63 79 99.7 50 51 80.1 30 53.5 62.0 79.8 1936: June. 104 105 101 104 105 100 90.4 81.1 73 65 87 111.5 55 62 95.7 52 69.5 80.0 79.2 July. 105 105 102 108 109 101 92.8 80.2 76 66 91 114.7 54 65 94.4 59 84.0 88.0 80.5 August 106 106 104 108 110 99 93.4 83.5 76 67 111.9 51 62 86.7 62 75.0 74.5 81.6 September 107 107 110 109 110 102 93.8 83.6 75 67 123.6 55 70 89.1 59 89.0 77.5 81.6 October 111 110 115 110 111 105 94.4 89.0 77 66 127.1 57 64 102.1 57 104.0 76.0 81.5 November.