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MONTHLY REVIEW
of Credit and Business Conditions

FEDERAL RESERVE BANK OF NEW YORK

INDEX FOR THE YEAR 1950
Guide to Page Numbers

Month of Issue

Pages

January.............
1 — 12
February ........... 13 — 24
M arch ............... 25 — 36

Pages

Month of Issue

Month of Issue

April ............. . 37 — 48
49 — 60
May ...............
61 — 72
J u n e ...............

Pages

J^y ............... 7 3 — 84
A u g u s t........... 8 5 — 9 6
September . .. 97 — 108

Month of Issue

Pages

October . . . . 109 — 1 20
November . . 121 — 136
December .. . 137 — 152

Page

Page
Agriculture
American agriculture in 1950
Output of farm commodities
Farm prices
Agricultural income
Changes in farm productivity
,

104
105
106
106
106

Chart
Changes in the output of important farm products in New
York State

105

Apparel Stores
Percentage change in apparel store sales and stocks
12 , 24, 34, 48, 6 0 , 72, 84, 9 6 , 108, 1 2 0 , 136, 150
See, also, Retail Credit Survey
Balance of Payments
Recent trends in the United States balance of payments

112

Chart
United States exports and imports of goods and services,
1948-second quarter of 1950
113
.pank Credit
Member bank credit
Bank credit and institutional loans and investments
Chairman McCabe’s letter to member banks

2, 26,99, 111
74
138

Charts
Changes in business and agricultural loans and all other types
of loans at the weekly reporting member banks during 1949 2
Changes in major types of assets held by leading financial
institutions
74
Changes in business loans at weekly reporting member banks,
1949 and 1950
99
See, also, Inflation, Loans, Money Market
Bank Deposits
Indexes of velocity of demand deposits, New York City and out­
side New York City
12 , 24, 34, 48, 6 0 , 72, 84, 9 6 , 108, 1 2 0 , 1 3 6 , 150
Turnover in bank deposits
90

Chart
Turnover of demand deposits at member banks in leading
cities
Banking of Federal Taxes

4, 7 3 , 7 6

Chart
Yields on long-term bonds and stocks, 1941-49

3

Chart
Net profits of various deposit size groups of Second District
member banks by semiannual periods
104

5

See, also, Money Market, Securities and Security Markets
Budget Messsage, The Presidents
Budget accounts

15
1 6 ,93

Business
The trend of

53

Business Indexes
1 2 , 24, 34, 48, 6 0 , 72, 84, 9 6 , 108, 1 2 0 , 1 3 6 , 150

Business Inventories
Inventory situation, The

82

Charts
Gross national product, 1947-first quarter of 1950
Total business inventories, 1948-April 1950
See, also, Department Stores, Retail Credit Survey
Canada
Canada’s international economic position
Canadian foreign exchange developments

82
83

44
132

Capital
See Corporate Financing, New Issues
Census of Manufactures
Data for Second District States
Chairman McCabe's Letter to Member Banks

21

138

Commercial Banks

Charts
Adjusted demand deposits— all commercial banks and weekly
reporting banks
Estimated ownership of business and personal demand de­
posits at all commercial banks in the Second Federal
Reserve District
See, also, Member Banks
Commercial Paper Market, The

90

Banking and Business Developments in the Second District
8,4 0,78,1 18
Bank Earnings
Earnings and expenses of Second District member banks
42,102




Bonds
Bond market

Commodities
International commodity prices since devaluation
Commodity prices since the Korean crisis
Output of farm commodities
International commodity price trends

27

42
115
9
86

105
141

Charts
Price indexes, 1949 and 1950
87
Dollar price movements of certain internationally traded
commodities
142

INDEX FOR THE YEAR 1950 (Continued)
Page
Connecticut
Manufacturing in

23

Charts

Construction
Restriction of residential real estate credit
Housing boom, The 1950
See, also, Real Estate

126
127

Consumer Credit
Retail credit survey
47, 57
Instalment lending by Second District member banks
63
Department store credit
108
Role of Federal Reserve Banks under the Defense Production
Act, The
112
Changes in consumer credit control
132
Corporate Financing
New issues
Private "deficit financing” and inflation

6 ,77

124

Chart

Business capital expenditures and new capital security issues
Credit
Member bank credit
Bank credit and institutional loans and investments
Restriction of residential real estate credit
Changes in consumer credit control
Chairman McCabe’s letter to member banks
See, also, Consumer Credit, Loans, Money Market

7

2, 26, 99, 111
74
126
132
138

Chart

Weekly changes in the volume of United States currency in
circulation, cumulated by fiscal years
Debt of the United States
Interest payments on the Federal debt
See, also, Money Market, President’s Budget Message, Public
Debt, Securities and Security Markets, Treasury Operations

Adjusted demand deposits— all commercial banks and weekly
reporting banks
Estimated ownership of business and personal demand de­
posits at all commercial banks in the Second Federal
Reserve District
Turnover of demand deposits at member banks in leading
cities
Devaluation
International commodity prices since devaluation
Discussion of
Direct Security Purchases from the Treasury by the Federal
Reserve Banks
»
Discount Rates
Increase in
See, also, Money Market
Dollar Position of Latin America, The
Reduced drain on gold and dollar reserves
Changes in the trade balance
Causes of the continued dollar problem
Methods of reducing the dollar deficit

27

42
9C

9
114

97
18
18
19
20
21

Earnings and Expenses of Second District Member Banks 42, 107
Chart

Net profits of various deposit size groups of Second District
member banks by semiannual periods
104;

Currency

Defense Production Act
The role of the Federal Reserve Banks under the

Pagt
Survey of ownership of business and personal demand deposits 4
Turnover in bank deposits
90

14
51

Economic Cooperation Administration
Discussion of

19

Electric Power
Index of electric power output
1 2 , 24, 34, 48, 6 0 , 72, 84, 9 6 , 108, 1 2 0 , 1 3 6 , 150
Growth of the electric power industry
145
Charts

112

Department Stores
Trade in Second Federal Reserve District, monthly review of
1 1 , 23, 33, 47, 59, 71, 83, 95, 107, 119, 135, 149
Sales in 1949
11
Recent inventory policy
23,135
Pre-Easter department store trade
47
Departmental distribution of 1949 sales
59
Recent pattern of department store sales
71
Recent changes in forward buying
83
Department store credit
108
Sales during July and August
119
Inventories in October
149

Electric energy production by class of ownership
Sales of electric energy

145
146

Employment
Indexes of factory employment, United States and New York
*
State
12, 24, 34, 48, 60, 72, 84, 96, 108, 120, 136, 150
European Payments Union, The
100
Factory Employment
See Employment
Factory Payrolls
See Payrolls
Farm Prices
See, also, Agriculture

106

Federal Funds

28

Charts

Federal Open Market Committee Statement

97

Indexes of department store sales and stocks, Second Federal
Reserve District
11,34,95,149
Outstanding orders and stocks of Second District department
stores, 1946-49
23
Weekly indexes of New York City department store sales,
January-April, 1948-50
47
Percentage distribution of department store sales by major
departmental classifications in 1949, Second Federal Re­
serve District
59
Department store sales by type of merchandise, Second
Federal Reserve District
71,119
Estimated receipts of merchandise and outstanding orders of
Second District department stores, 1948-September 1950 136
See, also, Retail Credit Survey

Federal Taxes
Banking of

Deposits
Indexes of velocity of demand deposits
1 2 , 24, 34, 48, 6 0 , 72, 84, 96, 108, 1 2 0 , 136, 150




Foreign Gold and Dollar Assets, The Rise in

3
79

Chart

Foreign gold reserves and short-term dollar balances

79

Foreign Trade
Dollar position of Latin America, The
Recent trends in the United States balance of payments

112

18

Chart

United States exports and imports of goods and services,
1948-second quarter of 1950
113
French Recovery, The

65

Freight
Index of ton-miles of railway freight
12 , 24, 34, 48, 60, 72, 84, 9 6 , 108, 1 2 0 , 1 3 6 , 150

INDEX FOR THE YEAR 1950 ( Continued)
Furniture Store Trade
See, also, Retail Credit Survey

Page
107

Germany
Western Germany’s problem of economic adjustment
Gold
Reduced drain on gold and dollar reserves
Rise in foreign gold and dollar assets, The
Gold and foreign account operations

55
18
79
123

Charts

Foreign gold reserves and short-term dollar balances
79
United States gold stock and foreign deposits in the Federal
Reserve Banks, 1948-50
123
Government Security Market
See Bonds, Money Market, Securities and Security Markets
Housing Boom, The 1950

127

Chart

New permanent dwelling units started in New York City and
in the metropolitan area outside New York City, percent­
age distribution by type, 1949 and January-August 1950 128
Income
Index of personal income
1 2 , 24, 34, 48, 6 0 , 72, 84, 9 6 , 108, 1 2 0 , 1 3 6 , 150
Industrial Growth in Second District States, 1939-47

21

Chart

The relative importance of industries, New York and all
other States combined, 1947

22

Industrial Production
See Production
Inflation
Federal Open Market Committee statement
Private "deficit financing” and inflation
Chairman McCabe’s letter to member banks
Instalment Lending by Second District Member Banks

Interest Payments on the Federal Debt
International Commodity Prices
Since devaluation
Since the Korean crisis
Trends

97
124
138
63

65
51
9
86

141

Charts

Price indexes, 1949 and 1950
Dollar price movements of certain internationally traded
commodities
Inventory Situation, The

87
142
82

Charts

Gross national product, 1947-first quarter of 1950, before
and after change in inventories
Total business inventories, 1948-April 1950

82
83

Investments
See Bonds, Money Market, Securities and Security Markets
Korea
Commodity prices since the Korean crisis
International commodity price trends

86

141

Latin America
Dollar position of
18
Loans
Member bank credit
2,2 6,99, 111
Banking and business developments in the Second District
8,40, 78,118
Instalment lending by Second District member banks
63
Bank credit and institutional loans and investments
74




Charts

Changes in business and agricultural loans and all other types
of loans at the weekly reporting member banks during 1949
2
Relation of instalment loans of member banks to total income
payments to individuals in the Second District and in the
United States
65
Changes in major types of assets held by leading financial
institutions
74
Changes in business loans at weekly reporting member
banks, 1949 and 1950
99
See, also, Consumer Credit, Credit
Manufacturing
Census of manufactures* data for Second District States
21
Manufacturing activity in New York
21
Manufacturing in Connecticut
23
Industrial growth in New Jersey
23
Member Banks
Credit
2,2 6,99,1 11
Banking and business developments in the Second District
8 ,4 0,78,1 18
Reserve position
14, 25, 38, 50, 6 2 , 73, 8 6 , 98, 110, 121,137
Earnings and expenses of Second District member banks
42,102
Instalment lending by Second District member banks
63
Turnover in bank deposits
90
Loan expansion
122,140
Nonfarm real estate lending in Second District member banks 129
Charts

Chart

Relation of instalment loans of member banks to total income
payments to individuals in the Second District and in the
United States

Page
Member bank loan expansion
122,140
Nonfarm real estate lending of Second District member banks 129
Chairman McCabe's letter to member banks
138

Changes in business and agricultural loans and all other types
of loans at the weekly reporting member banks during
1949
Relation of instalment loans of member banks to total income
payments to individuals in the Second District and in the
United States
Turnover of demand deposits at member banks in leading
cities
Changes in business loans at weekly reporting member banks,
1949 and 1950
Net profits of various deposit size groups of Second District
member banks by semiannual periods
Monetary and Debt Management Policy Developments
Money Market
Monthly review of 1, 13, 25, 37, 49, 61, 73, 85, 97, 109, 121,

2

65
90

99
104
97
137

Charts

Changes in business and agricultural loans and all other types
of loans at the weekly reporting member banks during 1949 2
Weekly changes in the volume of United States currency in
circulation, cumulated by fiscal years
14
Adjusted demand deposits— all commercial banks and weekly
reporting banks
27
U. S. Government public marketable securities, by maturity
or call class, outstanding at the end of April, 1946-50
39
Cumulated net changes in holdings of Government securities
by type of investor, December 31, 1948 to March 31, 1950 51
Major factors affecting the Treasury’s cash balance, July 1 ,
1949-May 31, 1950
63
Changes in major types of assets held by leading financial
institutions
74
Changes in business loans at weekly reporting member banks,
1949 and 1950
99
Ownership of Treasury bills
140
New Issues

6 , 77

Chart

Business capital expenditures and new capital security issues
New Jersey
Industrial growth in
New York City
See Apparel Stores, Department Stores, Deposits, Earnings,
Housing Boom, Member Banks, Retail Credit Survey

7
23

INDEX FOR THE YEAR 1950 (Continued)
Page
New York State
Manufacturing activity in

21

Charts

The relative importance of industries, New York and all
other States combined, 1947
22
Changes in the output of important farm products in New
York State
105
See, also, Agriculture, Employment, Payrolls
Nonfarm Real Estate Lending of Second District Member
Banks
Open Market Policy
Increase in discount rates
Organization for European Economic Cooperation
The second OEEC report
Discussion of

Prices
International commodity prices since devaluation
Index of consumer prices
1 2 , 24, 34, 48, 6 0 , 7 2 , 84, 9 6 , 108, 1 2 0 , 1 3 6 ,
Commodity prices since the Korean crisis
Farm prices
International commodity price trends

97
30
100

15
9
150
86

106
141

Charts

Price indexes, 1949 and 1950
Dollar price movements of certain internationally traded
commodities
Private “ Deficit Financing” and Inflation

87
142
124

Charts

U. S. Government net cash operating income or outgo,
1946-September 1950
_
125
Ownership of the interest-bearing public debt, December 31,
1945‘•July 31, 1950
125
Production
Index of industrial production
12 , 24, 34, 48, 60, 72, 84, 9 6 , 108, 1 2 0 , 1 3 6 , 150
Public Debt, The
18
Ownership of the public debt
50
Interest payments on the Federal debt
51
Change in public debt
94
Private "deficit financing” and inflation
124
See, also, Money Market, Securities and Security Markets,
Treasury Operations
Railway Freight
See Freight
Real Estate
Restriction of residential real estate credit
Nonfarm real estate lending of Second District member banks
See, also, Construction, Housing Boom

126
129

Recent Trends in the United States Balance of Payments

112

Chart

32

Chart

Indexes of weekly earnings in nonagricultural industries,
1945-49

33

Regulations V and W
Role of Federal Reserve Banks under the Defense Production
Act
112
Changes in consumer credit control
132
Regulation X
Restriction of residential real estate credit
Reserve Bank Credit
See Bank Credit, Money Market




Retail Credit Survey
Preliminary retail credit survey results
Retail credit survey, 1949

126
47
57

Cash and credit sales at credit-granting retail stores in the
Second Federal Reserve District

5B

Retail Trade
Index of sales of all retail stores
1 2 , 24, 34, 48, 6 0 , 72, 84, 96, 108, 1 2 0 , 1 3 6 , 150
See, also, Department Stores, Furniture Stores
Salaries
See Wages
Savings
Recent changes in personal

68

Second Federal Reserve District
Banking and business developments in the
8,40,78,118
Industrial growth in Second District States, 1939-47
21
Survey of ownership of business and personal demand deposits 41
Earnings and expenses of the Second District member banks 42,102'
Retail credit survey
47,57
Instalment lending by Second District member banks
63
Nonfarm real estate lending of Second District member banks 129
See, also, Apparel Stores, Credit, Department Stores, Deposits,
Earnings, Employment, Loans, Member Banks, Money Market
Securities and Security Markets
Security markets
4,75
Bond market
4,7 3,76
Stock market
5,75
New issues
6 , 77
Government security market 13, 37, 49, 61, 75, 85, 110, 122, 139
Direct security purchases from the Treasury by the Federal
Reserve Banks
9®
Charts

Yields on long-term bonds and stocks, 1941-49
Price indexes of low-priced and high-grade stocks and earn­
ings of large and small manufacturing corporations
Business capital expenditures and new capital security issues
Corporate retained earnings and changes in stock prices
Trade, Foreign
Changes in the trade balance (Latin America)
Canada’s international economic position

5
6

7
76
19
44

Treasury Bills
See Money Market
Treasury Bonds
See Money Market, Public Debt, Securities and Security Markets
Treasury Operations
Banking of Federal taxes
3
President’s budget message, The
15
Treasury financing
39
Treasury operations
62
Direct security purchases from the Treasury by the Federal
Reserve Banks
90
Treasury financing in the fiscal year 1950
92
Private "deficit financing” and inflation
124
Charts

United States exports and imports of goods and services,
1948-second quarter of 1950
113
Recent Wage and Salary Trends

Restriction of Residential Real Estate Credit

Chart

129

Payrolls
Indexes of factory payrolls, United States and New York State
1 2 , 24, 34, 48, 6 0 , 72, 84, 9 6 , 108, 1 2 0 , 1 3 6 , 150
Personal Income
Index of
12, 24, 34, 48, 60, 72, 84, 96, 108, 120, 136, 150
President’s Budget Message, The

Page
Reserves
Monthly review of 1, 13, 25, 37, 49, 61, 73, 85, 97, 109, 121, 137
Changes in reserve classification
27

126

U. S. Government public marketable securities, by maturity
or call class, outstanding at the end of April, 1946-50
39
Major factors affecting the Treasury’s cash balance, July 1,
1949-May 31, 1950
63
Federal cash receipts and expenditures
92
U. S. Government net cash operating income or outgo, 1946September 1950
125
Ownership of the interest-bearing public debt, December 31,
1945-July 31, 1950
125
Wages
Composite index of wages and salaries
1 2 , 24, 34, 48, 60, 72, 84, 9 6 , 108, 1 2 0 , 1 3 6 , 150
Recent wage and salary trends
32
Chart

Indexes of weekly earnings in nonagricultural industries,
1945-49

33