SEPTEMBER 1939 SURVEY OF CURRENT BUSINESS UNITED STATES DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE WASHINGTON VOLUME 19 NUMBER 9 THE INPUSTIIIAL MARKET DATA HANDBOOK OF THE UNITED STATES Domestic Commerce Series No. 107 s $2.50 (Buckram) The Industrial Market Data Handbook contains complete figures on industrial production, employment, value of products, cost of material, fuel and power, and output per wage earner for the 3,070 counties in the United States, and similar data for every city with a population of 10,000 and over. Included is a tabulation of the county location of 169,111 manufacturing plants by kind of industry. Parallel tables covering the mining industry of the country including a county location table for each of the 23,000 mines by type of mine is a part of this Handbook. The data described are for the year 1935. None of these have been available in such detail and a number are presented for the first time. The Handbook is especially valuable in estimating sizes and locations of markets, potential values of markets, for the establishment or reappraisals of sales territories, setting up sales and production quotas, making market analyses, planning sales and advertising campaigns, and in deciding on channels of distribution likely to be most profitable to the manufacturer. It is of special value to: Manufacturers, industrial marketing men, sales executives, finance companies, purchasing agents, advertising agents, economists, and research groups of universities and colleges. DISTRIBUTION COST ACCOUNTING FOR WHOLESALING Domestic Commerce Series No. 106 :15c a copy This manual contains a complete discussion of distribution cost accounting procedure for wholesaling activities, as well as much valuable information for anyone confronted with a distribution cost problem. Particularly valuable is the information explaining how business records may be analyzed to determine the cost of each merchandising department, each commodity, each customer group, and each territory of sales operation. All methods of cost allocations and expense break-downs used in the handbook have been tested and found satisfactory either by the Department of Commerce or by trade associations and accountants of national recognition. With the advent of recent Federal and State legislation relative to distribution, the subject of distribution cost accounting is receiving the keen attention of executives and others interested in distributive fields. This handbook contains detailed explanations and numerous illustrations. Copies of any of the above publications may be obtained at the price stated from either the Superintendent of Documents, Government Printing Office, Washington, D. C, or through any of the District and Cooperative Offices of the Bureau of Foreign and Domestic Com- merce located in principal commercial and industrial centers throughout the United States. Full remittance should accompany each order. Volume 19 Number 9 UNITED STATES DEPARTMENT OF COMMERCE HARRY L. HOPKINS, Secretary BUREAU OF FOREIGN AND DOMESTIC COMMERCE F. H. RAWLS, Acting Director SURVEY OF CURRENT BUSINESS SEPTEMBER 1939 A publication of the DIVISION OF BUSINESS REVIEW M. JOSEPH MEEHAN, Chief TABLE OF CONTENTS SUMMARIES Page CHARTS—Continued Page Business situation summarized. 3 Figure 4.—Distribution of number of benefits for total and partial Employment unemployment, by amount of benefit check, April-June 1939. 12 Domestic trade Figure 5.—Unemployment compensation: Cumulative collections Foreign trade and interest, cumulative benefit payments, and funds available Construction and real estate.... for benefits, in 23 states, January 1938-June 1939 14 Figure 6.—Unemployment compensation benefit payments and SPECIAL ARTICLES contributions collected in the 23 States paying benefits, since Trends in wholesale volume, 1929-38 11 January 1, 1938, by quarters 15 Financial aspects of unemployment compensation experience 12 Figure 7.—Unemployment compensation: Cumulative collections and interest, cumulative benefit payments, and funds available for CHARTS benefits, in Texas and West Virginia, January 1938-June 1939.... 16 Figure 1.—Monthly business indicators, 1929-39 2 STATISTICAL DATA Figure 2.—Factory shipments of vacuum cleaners and factory sales of washing machines and electric refrigerators, by months, 1935-39 3 Monthly business statistics 19 Figure 3.—Shipments of building materials, by months, 1937-39... 5 General index Inside back cover Subscription price of the monthly and weekly issues of the SURVEY OF CURRENT BUSINESS is $2 a year. Single-copy price: Monthly, IS cents; weekly, 5 cents* Foreign subscriptions, 33.50. Price of the 1938 Supplement is 40 cents* Make remittances only to Superintendent of Documents, Washington, D. C. 173409—39 1 1 SURVEY OF CURRENT BUSINESS September 1939 Monthly Business Indicators, 1929-39 INDUSTRIAL PRODUCTION INCOME PAYMENTS AND CASH FARM INCOME 140 voLUME (1923-25 = 100) MONTHLY INCOME PAYMENTS (1929=100) 120 CASH FARM INCOME (1924M9£9«1OO) 130 110 120 100 } A. •MONTHLY INCOME PAYMENTS 110 90 / 100 1 80 / * V 90 70 \ 80 A , / 60 V \ 70 50 -CASH INCOME FROM FARM MARKETINGS (EXCLUSIVE OF RENTAL & BENEFIT PAYMENTS) 60 tz VV 40 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 192.9 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 CONSTRUCTION CONTRACTS AWARDED** FOREIGN TRADE * 140 120 100 80 .60 40 20 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 FACTORY EMPLOYMENT AND PAYROLLS WHOLESALE PRICES AND COST OF LIVING 140 (l923~25« 100) (1923-25 =100) 110 120 100 100 90 **\ FACTORY EMPLOYMIzNT-^ , ^ V^^ (ADJUSTED) ^ 80 J 80 60 70 ^FACTORY PAYROLLS (UNADJUSTED) WHOLESALE PRICES 40 V J] 60 20 50 0 0 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 RETAIL SALES * STOCK PRICES 175 AUTOMOBILE SALES (1929-31=100) (1923-25=100) 350 DEPARTMENT STORE SALES (1923~25=1OO) 150 300 ^-350 INDU STR1AL COMPAMES 125 250 -DEPAfi?TMEN7rSTORl s I A 100 u J 200 rt '\ 75 1 150 •A \ 50 1 y 100 25 l/l 1 Is- 50 JEW PASSENGiEff AUTOMOB \ | ^~3O RAILROAD CZOMPAt WES 0 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 * ADJUSTED FOR SEASONAL VARIATION • THREE-MONTH MOVING AVERAGE 0.09*32 Figure 1. September 1939 SURVEY OF CURRENT BUSINESS Business Situation Summarized OMESTIC business volumes in August were not aggregate, factory production made the usual increase D materially affected by the threatening European for this period. Automobile assemblies were at a sea- political developments and there was a further moder- sonal low of about 100,000 units, but by the end of the ate improvement during the month. Manufacturing month a number of plants were turning out 1940 models production increased seasonally following the consider- and employment in automotive centers was again rising. able gains in the adjusted index during June and July Steel ingot production, following the marked improve- but the drop in crude petroleum output reduced the ment during June and July, expanded at a more-than- volume of mineral production. General merchandise seasonal rate in August; finishing operations increased trade experienced the usual substantial rise; automobile during the month after lagging in the June-July ad- sales dropped as the model change-overs, which came vance. Output of ingots averaged about 61 percent of earlier than usual this year, accentuated the normal decline from July. Construction operations continued THOUSANDS OF UNITS at the high levels reached in the preceding month and 200 VACUUM CLEANERS contracts for new projects were little changed from the (Floor Types) July rate. Business in all major lines continued well 150 in advance of a year ago, though industry and trade, I 00 generally, did not match the strides made at this Jv time in 1938 when the pick-up from the low point of 50 V the 1937-38 recession w^as gaming momentum. Mounting European tension, which arose from the immediate prospect of a general conflict, unsettled 200 WASHING-MACHINES financial markets throughout the month. Commodity I 50 markets were sensitive in some degree to developments abroad, though, through August 31, there was not much 100 change in quotations on products likely to be affected by war demands. However, with the outbreak of actual hostilities between Germany and Poland on September 1, quotations of a number of commodities advanced sharply. On that day sizable gains occurred ELECTRIC REFRIGERATORS in prices of such staples as wheat, corn, rye, cocoa, sugar, lard, tin, and rubber; there was a small rise in copper quotations and a strengthening in prices of other industrial materials. Though August did not bring a repetition of the gen- eral curtailment of commitments experienced at the time of the European crisis last spring, purchasing by industrial consumers nevertheless was not so aggressive as in the 2 preceding months which witnessed pro- nounced buying waves in certain staples. Retailers continued to make commitments based upon expecta- tions of a good fall trade, with wholesale volumes well ahead of last year. Primary distribution of commodi- ties, as indicated by freight traffic, held around the 1935 1936 1937 1938 !939 J July rate with little change indicated for the adjusted index of loadings for August. The freight movement continues to exceed last year's volume by about one- eighth. The carriers have also benefited from the increase in summer travel this year; record gasoline daily capacity as compared with 55 percent in July. consumption and high replacement sales of tires are Production was higher than in any month since Sep- also a reflection of this trend. tember 1937, exceeding output last November by a Further expansion in activity occurred in a number small margin. Other durable-goods industries have of manufacturing lines during August and, in the maintained or improved their position.