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MONTHLY REVIEW o f C r e d it a n d B u s in e s s C o n d it io n s Second F e d e ra l R e se rv e D is tric t F d ra Rs rv B n , NwY rk e e l ee e a k e o M o n e y M a r k e t in J u ly A g s 1 90 u u t ,1 4 t r int e scn hlf o J ly a nucdt a e vn o h eod a f u none ht lee lon ageain $ 8 ,0 0 0 hdbe md t pivt as gr gt g 1 2 0 ,0 0 a en ae o r ae inut yb t eRcnt ut nF a c Cr oaio . dsr y h eo sr cio inne opr t n A t e acma y g d ga inict s cmec l s h co pnin iar m d ae, o m ia r lon a r prin bns inNwYr C yhv r e as t e ot g ak e ok it ae isn b ant a o n o $ 0 ,0 0 0 int epr dbt en y e mut f 3 0 0 ,0 0 h eio ewe J ly 13, a dJ ly 14, a da bns in10ohr u , 9 9 n u , 90 n t ak 0 t e c ie, t er ehsa o ne t $ 6 ,0 0 0 . Fo t e it s h is a mut d o 2 5 0 ,0 0 r mh saoa lo pin rahder t is ya, NwYr es nl w o t ec e aly h er e ok C y bns hv inrae t e cmec l lon b it ak ae cesd hir o m ia as y r $ 8 0 ,0 0 a ddr gt esm pr dbnsinohr 6 ,0 0 0 , n uin h a e eio ak t e c ie hv hda i ces o $ 0 ,0 0 0 . it s ae a n nrae f 1 7 0 ,0 0 Ma wile a t e ohr pr o t e d ga s o s en h , s h t e at f h iar m hw t t l Uit dSae Gvr mn s c r yhld g o t e oa n e t t s oen e t euit o ins f h NwYr C ybns hv r e $ ,0 0 0 ,0 0 int e e ok it ak ae isn 1 7 ,0 0 0 h ya e ddJ ly2, 14, o wic i ces $3 ,0 0 0 er ne u 4 90 f h h nrae 7 0 0 ,0 0 hsoc re s c t elatrprin dt in13. Tt l a curd ine h s e ot g ae 99 oa Gvr mn s c r y hld g o rprin bns i oen e t euit o ins f e ot g ak n ohrc ie, hwvr hv s o nant i ces o o ly t e it s o ee, ae hw e nrae f n $ 2 ,0 0 0 fo t eps ya, a o wic i acut d 1 0 0 ,0 0 r h at er ll f h h s cone fo b ar eint ewe e ddJ ly2, we t enw r y is h ek ne u 4 hn h e 2/4 pr cn Tes r bns o 15-5 wr isud 1 e e t r auy od f 94 6 ee s e , adt t l hld g o s c bnsaenw t d f rn n oa o ins f uh ak r o litle ifee t fr mt ef uea t ec s o 13, ds it alag in o h igr t h loe f 99 ep e r e ces int e dps s rae hir e oit. Dvlomns int e mnymr e, go in ot o ee p e t h oe akt r w g u f t ewrinEr p, hv t u fa ino e mc lagr h a uo e ae hs r vlvd uh r e ad io st t is c u t y get po o aa b bn dit n o h o nr ’s ra ol f vilale ak ce itt a t dmnsfo s c ce it At nio ut rd hn o e ad r uh rd . te t n nil rcnly hs t eeoe be mr gnr lly at at d ee t a, hrf r, en oe e ea tr ce t t es c r ymr es wic hv a t e be r t e o h euit akt, h h ae t im en ahr s v le t af ce b wrdvlomns I J ly hw io nly fet d y a ee p e t. n u , o ee, arlaivlylesat epaeo t ewrhsbe vr e t e s civ hs f h a a en acmaie b ecpio a dll s c r ymr es ad co pn d y xe t nlly u euit akt, n m e at nio hs be d et d t t e popciv o te t n a en irce o h r s et e r f ac go t isc u t y df nem s rs innin f h o nr ’s ee s e ue. a I rcn wes t ee hv be inict n o t e n ee t ek hr ae en d aio s f h bg n g o a epnio in t e dmn fo bn einins f n xa s n h e ad r ak ce it wic my b rlae , t sm s a et n a rd , h h a e e t d o o e mll xe t t les, t t edf nepor m Teepnio hst kn at o h ee s r ga . h xa s n a ae t e fomprly o inrae bs es bro in, ad h r at f cesd uins or w g n, m elagly o inrae Gvr mn bro in. Dr o r e , f cesd oen e t or w g u r in t efo rw k e ddJ ly2 t et t lo cmec l, g h u e s ne u 4 h oa f o m ia e r inut ia a dar u ua lon o t t nin t r uh dsr l, n gic lt r l as usa d g ho g t e we ly rprin bns rs b ant a on o h ek e ot g ak oe y e mut f $ 3 0 ,0 0 hv grahdo J ly1 anwh hfo 6 ,0 0 0 , ain ec e n u 7 e ig r t epr dsnet eot ra o t ewr Tec re t h eio i c h ubek f h a. h urn vlu e o s c lon, hwvr sill rmin s m ht o m f uh as o ee, t e a s o e a w blo t a rahdint elat rpr o 13 ader BILLIONS e wht ec e h te at f 97 n aly billions 13. I t e ps mnh $ 5 0 ,0 0 o t e i ces OFDOLLARS 98 n h at ot , 2 ,0 0 0 f h nrae O DOLLARS F GOVERNMENT SECURITIES oc re inNw okCyad$ 8 0 ,0 0int eohr curd e Yr it n 3 ,0 0 0 h t e (DIRECT &GUARANTEED) j rprin c ie, weesinJn ms o t einraehd e ot g it s hra ue ot f h ces a be a NwYr C ybns Tercn inrae in en t e ok it ak. h ee t cess t e a o n o cmec l lon o t t nin, it i b h mut f o m ia as usa d g s e r liee , hv inpr be t e rs lt o “t r ” lon vd ae at en h eu f em as ga t d inluin t oemd fo t epr oeo r t r ne , c d g hs ae r h ups f eir in o t t nin s c r yi s e, bt hv a orf ce g usa d g euit sus u ae ls elet d dmns fo s ot rt r ce it ais gfr maclea e ad r hre em rd r in o ce r t ninbs es at it . N dt aeaa b o t e io uins civ y o aa r vilale n h et n t wic t eNt nl pe ae ns por mhs xe t o h h h aio a rprdes r ga a rs lt dini cessinbn lon, btiti psib t a eu e nrae ak as u s os le ht t epor m a hv hdinirc, if ntd et ef cs h r ga my ae a d et o irc, fet, a t e r in t ne c rcnly nt d fo cmec l s h is g e dny ee t oe r o m ia r lon hs be inavne o t et ewe t euul as a en dac f h im hn h s a saoa ut r oc r; od aily cmec l lon es nl pun cus r inr , o m ia as r raht e lo pin o t eya inJ ly Frhr oe ec hir w o t f h er u . ut emr , dr gt ewe e ddJ ly2, t eGvr mn s c r y uin h ek ne u 4 h oen e t euit hld g o t ewe lyr prin bnsinrae $2 ,o ins f h ek e ot g ak cesd 2 5 00 0, rf cin t e pric aio inanwi s eo J AS ON DJ FMAMJ 0,00 elet g hir at ipt n e su f Tes r bns pb ly a te in t e a o n o rauy od, ulic llot d h mut f $ 3 ,0 0 0 . I cnet nwht e f ac go t e Commercial, Industrial, and Agricultural Loans, and United States 6 1 0 ,0 0 n oncio it h innin f h Nt nldf nepor mt eFdr lLa Am isr Government Security Holdings of Weekly Reporting Member aio a ee s r ga , h e ea on d in t a Banks in Leading Cities 4 .0 7 .0 1939 1940 1939 1940 58 M O N T H L Y R E V I E W , A U G U S T 1, 1940 Tei cess incmec l lon a dUit dSae cnine t dc e adt ei s edt dJ ly2, wic h nrae o m ia as n n e t t s ot ud o elin, n h su ae u 4 h h r Gvr mn s c r y hld g, a dsm r e inohr wss ldo J ly2, wsa adda a aeaert o oen e t euit o ins n o e is t e a o n u 2 a wr e t n vr g ae f inet e t, hv be prly of e b liqidt no 0 0 pr cn, a cmae whar t o 0 0 pr vsmns ae en at fst y u aio f .06 e e t s o prd it ae f .08 e boes lon, b t t t l lon a dinet e t o Nw cn o t epeio swe ’si s e I t efo w gwe, rkr as u oa as n vsmns f e e t nh rv u ek su. n h llo in ek Yr C ybns s o ant i ces o $ ,2 5 0 ,0 0 t ert dc e fut e t 0 0 prcn, wic i t e ok it ak hw e nrae f 1 7 ,0 0 0 h ae elind rhr o .04 e e t h h s h fo t e ps 1 mnh, wile t e t t l o lon ad lo etfo a yTes r b slesnelatAr Y ld r h at 2 ot s h h oa f as n ws r n r auy ill a i c s pil. ie s inet e t o rprin bns inohr c ie s o s a o Uit dSae Gvr mn sc r ie o inemd t vsmns f e ot g ak t e it s hw n n e t t s oen e t euit s f t r e iae r eo $ 3 ,0 0 0 . is f 5 5 0 ,0 0 mt r ya oesddr gt eps mnh a dy ld auit ls ae uin h at ot , n ie s o lo gt r bns t ne s hlylo e. n n em od e dd lig t wr E xcess R eserves G overnment S ecurities Mme bn ecs rsre rs t anwh ho e br ak xes eevs oe o e ig f $ ,8 0 0 ,0 0o J ly1, bt t ei ces int et re O J ly1, t eTes r md it f s “nw o e ” 6 8 ,0 0 0 n u 7 u h nrae h he n u 1 h r auy ae s irt e mny w k e ddo t a dt a one o lyt $ 0 0 ,0 0 of r gt t emr e s c lat Dcme. A t e t e s ne n ht ae mut d n o 8 ,0 0 0 , fein o h akt ine s ee br llomns e a cmae whars o $4 ,0 0 0 int epee in o pb s bcipio t t enwi s eo 24 prcn s o prd it i e f 4 0 0 ,0 0 h rcd g n ulic usr t n o h e su f * e et f u wes Te rt r aio o t e r e ds it a Tes r bns o 15 -5 , wic ws dt dJ ly 2, o r ek. h eadt n f h is, ep e r au fut e i ces o $ 8 ,0 0 0 i t e gldsok r a one to$ 3 ,7 0 0 , 6c hin $ 9 1 ,0 0a te rhr nrae f 3 5 0 ,0 0 n h o t c , e muty o d 0f29 4 inlu h a,1ae0 u t2 d 6 ,0 0 d g 3 0 llo d f ce ant i ces int ea on o mnyinc c b pe r nia are e t t s bcibr o $,00 o let d e nrae h mut f oe iru y r fee t l gemn o usr es f 5 0 r laio bcueo t eI dpne c Dyhlidy ada s h a e htdliv y em e eisee b d t n eas f h ne e dne a o a, n oge e a gt d o s s ale inrae infoe nbn adohr dps s in leswsarrdt as edr ;bntd inr,6 0 r0o ne izb ces r ig ak n t e e oit 9 dy ft t ei u a aohr$ 0 0 ,0 f t 0 a e h s e te e 4 0 h t eFdr l Rsr eBns A o int ef s we o isu wsa te t Tes r inet e tacut. Te h e ea eev a k. ls , h irt ek f s e a llot d o r auy vsmn cons h t epr dt eRsr eSse Oe Mr e Ac uts ld dlivr dt fo rg t rdbnsbuh b s a s b h eio h eev yt m pn akt co n o e ey ae r eisee od o g t y mll u $ 3 0 ,0 0o Gvr mn sc r ie inodrt s t fy sr esudrt epe r nia a t e t wset ne 2 ,4 0 0 f oen e t euit s r e o ais cibr ne h r fee t l llomns a xe dd apr o t esr n dmn fo s c sc r ie wic 3 dy fut e a e t eisu dt t a ws dn i at f h t o g e ad r uh euit s h h h en eise a t et e Teewsvr litlent c ag in t0 “nwmnyftinninso lat Dcma. omll x t d t h im. hr a ey t e hne h as rhr ” fra c g e ae hn br S a e e oe f s ee e Tes r cs a ddps sint eRsr eBns o in s bcibr wr a te aot 6pr cn o t a pr rauy ah n e oit h eev a k, w g usr es ee llot d bu e e t f ht o t s bt nia whr wlso fud fr mpc l dps t no t eJ lyisu wic ws s ldt t epb , a o usa t l it da a f ns o s eia e oi io f h u s e h h a o o h ulic s t r st cvrt eGvr mn’secs o epnit rs cmae wh4prcn o t eDcme i s e O e aie o oe h oen e t xes f xe d ue o rd it e e h oe rcips I t ewe e ddJ ly2, ecs rsre s bpibr wr a te t9f e cnefbhiru. ivt a vr ee t. n h ek ne u 4 xes eevs usr es ee llot d ph e t o tr s in id r c e r e d ul dc e $ 1 ,0 0 0 , t e f s dc e o a y sz in usr t n r h u su, gint e e t r elind 3 0 0 ,0 0 h irt elin f n i e ip ecs rsre sne Mrh we ino e t x clle s acfDcs fort eJ lyi s e aa s 8pr cn fo xes eevs i c ac , hn cm a o c t b o ioe b . ht e me t n cue a t moay rdcio . Te rcn d O J ly2, t eTe s r , o bhlfo t eCmoit ios asd e pr r e ut n h ee t e 4h a y o c ea ows det Tes r oeaios s eif a Cen u r oaio ,rfee fo s bcipio a prd d lin ls a u o r auy pr t n—pc iclly rd C pr t n ofud n e a r fth t ma y it o r r us n a n t cs py e t ino t e Rsr e Bns fo t e acudineet$ 5 ,0 0 0 o Cmoit Ce it Cr o ah amns t h eev a k r h cr e t s 2 0 0 ,0 f md $ 3 ,0 0 0 o nw2 pr cn Tes r bns o pr t n%re cn nt s0 ae o uuty, r90 ad 6 1 0 ,0 0 f e % e e t r auy od f oaio pr e t oe, dt dAg s 1 1d, o 15-5 p lic a te , mr t a 7 prcn o wic mt r gMy1 14. Tisisu, fu g aa4e n 94 6 iib ly llot d oe hn 0 e e t f h h uin a , 93 h s e lly u n d y wr pidfo ime iae incs adlest a 3 pr t aUit dSae, wshailyoes bcibdrAeinb ee a r md t ly ah n s hn 0 e h n e t t s a ev vrusr e . t n n cn b ce it t t eWrLa dps acut o t e ve nfo Gvr mn f ac gws t enwcrif o e t y rd o h a on e oit cons f h aio r oen e t innin a h e et ic t Gvr mn o t eboso t es bcib gbns I t na pain o t e cs s bcipio fomue in oen e t n h ok f h usr in ak. t io per g n h ah usr t n r sd a i epce t a cs py e t fo t e nwisu o c ncio it h i s e Te nwcr ict n is s xet d ht ah amns r h e s e f o t et Cmoit Ce it Cr oaio nt s o Ag s 1w dnee n wh t t tsu.ath oe a inif aiol o o md y rd opr t n oe n uut ill eig dt e inis h p cic f mk gfom r s n o lim ae e r e rs lt inafut e iner pio t t eudr in u in r a cnr csfo t esleo s bcipio so a t eu rhr t rut n o h nely g p foml ot at r h a f usr t n r a wr t e do ecs rsre cue b t ecninin m t bf r t ec s go t es bcipio bos Tis ad rn f xes eevs asd y h o t u g e s eoe h loin f h usr t n okr llo n . h haygldinlo t t is cut y ev o f wo h o nr . pat ehdbe d cuae b t eTes r a dt e r cic a en iso r gd y h r auy n h Rsre Bns bt hd prise t sm et n o eev a k u a es t d o o e xe t n M oney R ates rcn i s e. ee t sus A t e lag rdcio wic oc re inecs r Tes r b f a c gdr gJ lywscmoe o s h r e e ut n h h curd xes e r auy ill innin uin u a o psd f sre dr gt ewe e ddJ ly2 wsrcg izda fv we lyisus ec int ea o n o $ 0 ,0 0 0 , evs uin h ek ne u 4 a eon e s i e ek s e, ah h mut f 1 0 0 ,0 0 bin o at moaynt r ada ina y ee t t e n o 9 a t r , wic e cds ila mt it s e g f e pr r aue n s n vn h y p r a . vlu e o s r lu fud rmind vr lag, s ot aPics1fdr auybh hrolaeitim ar wrne o m f up s ns e a e ey r e hr d f o Teem od mvdwh nro u ies re s r ns e in rg a t r mnyr t s wr uaf ce . Tes r b rt s dr gJ ly Teaeaepic o lo gt r Tes r em oe ae ee nfet d r auy ill ae uin u . h vr g r e f n em rauy bns esds hly o J ly 6 a d8 jut bf r t e od ae lig t n u n s eoe h Tes r a nucmn o it of r g o t e 24 pr r auy none e t f s fein f h 1 e cn bns bt lae avne s m ht rah g o et od u t r da cd o e a, ec in n w J ly1 alee o ly%o apin blo t eMyh h u 7 vl n f o t e wh a ig. *1H *1H Lt rint emnhpicsmvdire u r b t c sd ae h o t r e oe r g laly u loe Vz-Vs y2 8 -y Ue olys hlyblo t emnh h h O J ly 3, t e n lig t e w h o t ’s ig . n u 1 h nw2/4 pr cn bns o 1 5-5 wr qoe a e 1 e et od f 94 6 ee ut d t 122 /3 , adt eCmoit Ce it Cr oaio nt s 0 0 2 n h o md y rd opr t n oe a 101 /3 . t 0 02 I s ot r t r Gvr mn sc r ie, inrae in n hre em oen e t euit s cess Tes r nt picsint ef s t ndy o J lyrs lt d r auy oe r e h irt e as f u eue Y H inadc eint eaeaey ldo 3t 5ya Tes r elin h vr g ie n o er rauy nt s fr m0 4pr cn t 0 4pr cn. Dr gt e oe o .6 e e t o .5 e et uin h Money Rates in New York 1 July 31, 1939 June 29, 1940 July 30, 1940 Stock Exchange call loans....................... Stock Exchange 90 day loans................. Prime commercial paper 4-6 months. . . Bills— 90 day unindorsed......................... Average yield on Treasury notes (3-5 years)........................................................ Average yield on four Treasury bonds (not callable within 12 years)............. Average rate on latest Treasury bill sale 91 day issue............................................ Federal Reserve Bank of New York dis count rate................................................ Federal Reserve Bank of New York buy ing rate for 90 day indorsed bills......... * Nominal 1 1 1 0 .42 0 .6 4 0 .58 2 .13 2 .30 2.28 0.019 0.046 0.004 1 1 1 l FE D E RA L RESERVE B A N K OF N EW Y O R K 59 rmine o t emnht eaeaey ldhlda aot N ew F in a n c in g e a dr f h ot h vr g ie e t bu 0 7prcn. .5 e e t Tef s hlf o J lywsmr e b t emt r liz h irt a f u a akd y h aeia a C ommercial P aper and B ills t no svrl pb of r g o sc r ie wic hd io f eea ulic feins f euit s h h a e f e , n lt e d h lu e Te pe a grt fo aeae gae pim 4 t 6 be ds rsdae a huht evt md in hdan h r vilin ae r vr g rd r e o hn eer wr , lo o g h to e im is ee ft r d o ro r mnhcmec l ppr rminda arne o % msici slee eeuitt isusraa df2op0t 0ad ot o m ia a e e a e t ag f -% t ueipunws cf ae , t e ecl o c8 0a0 fo r ry e e $ ,0 r pr cn dr gJ ly Ta s cio s a o cnine t t emnh alagrt t l ts ninehro 9et ,0pe i e et uin u . r nat n ls ot ud o n a h h or b cnu mt d a % pr cn in nt s o cnen os mnh, br e a a ta inFbufyow r vf e os mae t e et oe f ocr s h o t ,s u s o r h n it e at rA il o h r r t da bin a o gt ec ocs o cmec l rs s tu yor Crtrmlleusaulic e ree o ppae ae s e g mn h hi et f o m ia i k. h e t op aei s e pb lyof rd r r t ly r is a. ot s f N c ags oc re dr g t e mnh ine hr t e s ldt t le 2 ,0 0 0 , o wic $ 9 0 ,0 ivp o hne curd uin h ot it e h o ,0 0 at ebn inet e t inu yfo cmec l ppro sneoa d $o8 0sdfo fnwcp3l,0up0seae civ ak vsmn q ir r o m ia a e r e t dfu d t1 eue 0 r eh h it pr0s r rd r ns b a a oe, n int evr s a s plyo pprwic da r ot ind Sae ad mn ipl a ad ageae $ 0 0,00 h ey mll up f a e h h eles ba e u d fo s leint eoe mr e. A t ee do Jn cm Sc r y i s e icfadwr sin trgto t 8,0e wll r a h pn akt t h n f ue o t t itnsus o ee er gh mnh wr0 0. eu f r aly e e e m c l ppr da r rpre $ 2 ,1 0 0 o ppr rcivdb inet r, b t rprs inict dt a s be e ia a e eles e ot d 2 4 0 ,0 0 f a e ee r os e a bin o tt nin. A mnher r t e t t l ws qe te ty n mvds m ht s w . e ht us s e g usa d g ot alie h oa a un f aiovsoe u e ot lod a lo t o a ly $ 3 ,2 0 0 , ad a ya er r t e f ue ws Tepinips cr oaeawmn ipl i s e inlue 2 4 0 ,0 0 n er alie h igr a h r c a opr t n uic a sus c dd l d $ 8 ,7 0 0 . 1 0 0 ,0 0 I at it cnine t c aat r et ed cutmr int et t lsfo J lyaea fo w: nciv y ot ud o hrceiz h ison a h oa r u r s llo s $60,000,000 Texas Corporation 3 per cent debentures o f 1965, ktfo bnesb dr gJ ly da r' rt scnin e r akr ills uin u , eles ae o t u priced at 103 to yield 2.83 per cent, for in t b qoe a lee peio s inef c. Rflet g o e ut d t vls r v uly fet e c refunding in dcess in epr b ad dm t wrhue g erae xot ills n o e ic ae os s 50.000.000 Cleveland Electric Illuminating Company 3 per ce it, t ea on o bnes acpacs o tt nin rd s h mut f akr cet ne usa d g cent first mortgage bonds of 1970, priced at dc e $ ,0 0 0 fut e dr gJn t anwlo elind 8 0 ,0 0 rhr uin ue o e w to yield 2.73 per cent, $10,000,000 for new capital purposes and remainder for re o $0 ,0 0 0 . f 2 6 0 ,0 0 funding 105y2 S e c u rity M a rk e ts 32.000.000 Indianapolis Power and Light Company 3% per cent first mortgage bonds o f 1970, priced at 10 4^ to yield 3.02 per cent, for refunding F. W. Woolworth Company 2% per cent deben tures of 1955, sold privately at par and accrued interest, $7,500,000 for new capital purposes and remainder for refunding State of New York, i y 2 per cent serial bonds, maturing 1941-65, awarded at 100.041 (net interest cost o f 1.497 per cent) and reoffered to yield 0.15 per cent to 1.65 per cent to maturity, for new capital purposes Iowa Southern Utilities Company securities, con sisting o f $10,000,000 first mortgage 4 per cent bonds o f 1970, priced at 101 to yield 3.94 per cent; and $2,660,000 general mortgage 4% per cent bonds o f 1950, priced at 101 to yield 4.38 per cent; both issues for refunding Scovill Manufacturing Company 3 % per cent debentures o f 1950, priced at 102 to yield 3.02 per cent, $2,150,000 for new capital purposes and remainder for refunding. Dlns ws t e pe o inn c aat r t o t e u es a h rdm a t hr ceisic f h 22.000.000 dmt s c r ymr esinJ ly Aeaesokpics o e ic euit akt u . vr g t c r e, s a maue b t eSa dr Saisic Cma y9 sok s es rd y h t nad t t t s o pn 0 t c ine, mvdwh anro r net r uhu v t a dx oe it in ar wag ho g o t irully 15.000.000 a o t e mnh bt o J ly 3 amdr t avne ll f h ot , u n u 0 oeae dac oc re wic r isdt eSa dr Saisic ine t a curd h h a e h t nad t t t s dx o pin aot 4pr cn aoet ef uefo t ee do o t bu e et bv h igr r h n f Jn. A t euprlim o t emnh r ne aot ue t h pe it f h o t 's a g, bu t of h o t eMy ue dc ehdbe rgind w ift s f h a-J n elin a en ea e . 12,660,000 Tevlu eo t a s cio so t eNwYr SokE h o m f r nat n n h e ok t c x c ag o svr l dy ws in t e nigbr od o hne n eea as a h e hoho f 2 0 0 s ae, t e s a s sne t e et e e dll 0,00 hrs h mllet i c h xrmly u pe r isic pr dinSpe br 11, adnvre r -Amt e eio e t me, 98 n ee x 10.000.000 cee adilyt t lo 40 0 s ae u t J ly3, we edd a oa f 4 ,0 0 hrs nil u 0 hn t r oe rs t 6 0 0 s ae. unvr oe o 7,00 hrs Md mgaedm t cr oaebns t oer t d e iu r d o e ic opr t od, hs ae s Bab Mo y I vsos Sr ic, md amc lagr a y o d’s net r ev e ae uh r e rcvr fr mt e My ue dc e t a d sok. I ad io t t eSaeo Nw okbns anme eoey o h a-J n elin hn id t cs n dit n o h t t f e Yr od, u br Teaeaepic o t eebnso J ly1, a e pr o s a rmn ipl i s e wr a adddr gJ ly h vr g r e f hs od n u 7 ft r e f mlle uic a sus ee wr e uin u , s t n srnt sneJn 1, hdrcvrd8 prcn t elags o wic ws $ ,0 0 0 Pr o NwYr ise t t e gh i c ue 1 a eoee 5 e et h r et f h h a 9 0 ,0 0 ot f e ok o t eMy uercsio, rf cin epc llysrnt At oit 3prcn gnr ladr fud gbnsmt r f h a-J n ees n elet g s eia t e gh uhr y e e t e ea n e nin od au inscn gaer ilr a i s e. Fllo in as otpr d in in17. Tisisu, a adda 9.8, wsrof rd eod r d a odsus o w g hr eio g 96 h s e wr e t 8 0 a efee o ireu r mvmns md mgae bn pics a 9 %t y ld3 3 pr cn. A i s eo $ ,0 0 0 f r g la oe e t, e iu r d od r e t 9 o ie .0 e e t n su f 5 0 ,0 0 wae e s m ht a e J ly 2 bt t r e f m Cmowa ho Pns lvn 3 pr cn Tr p e eknd o e a ft r u 2 u und ir e o mn elt f e ny a ia % e et unik w r rvnebns o 16 wspb lyof rda pr ad ee u od f 98 a ulic fee t a n aa na t ee do t emnh gin er h n f h ot . Pim cr oaebns t oer t dAa b Mo y qic lys ld Teebnshdbe peio s a add r e opr t od, hs ae a y od's u k o . hs od a en rv uly wr e I vsos Sr ic, o J ly 3 rahdt eh hs lee t abnin go pb t eRcnt ut nF a c Cr net r ev e n u ec e h ig et vl o a k g r u y h eo sr cio inne o s c My1. A r sm s h inevn gwans pr t n adinrae t $ 5 0 ,0 0 t e a on o ine a 1 fte o e lig t t r e in ekes oaio , n cesd o 3 ,0 0 0 h mut f t islee wsrat indo J ly1 adhldut J ly3 t eeoligt n t knads ldb t eCr oaio ot h vl a eta e n u 5 n e nil u 0 hs b aio s ae n o y h opr t n u we afut e avneoc re . H hgaer ilbns o at t l o $ 0 0 ,0 0it hdare t prhs. hn rhr dac curd ig r d a od f oa f 4 ,8 0 0 a ged o uc ae s e o h n em euit s h h o pisd s o e agnr llyr in t ne c t r uhu t emnh Aid fr mt elo gt r sc r ie wic cmr e hwd e ea is g e dny ho g o t h o t n ado J ly2 ecee t epeio sh hfo t eya t e$ 9 ,0 0 0 t t l peio s m t nd s ot t r n n u 9 xedd h rv u ig r h er h 2 8 0 ,0 0 oa r v uly e io e , hr em rahdo My6 A inJn, mn ipl bn pics f a c gint e a o n o aot $ 6 ,0 0 0 ws a ec e n a . s ue uic a od r e innin h mut f bu 2 8 0 ,0 0 a r mvdu sed inJ ly acr in t t e Sa dr r ne dr gJ ly oe p t a ily u , cod g o h t nad a gd uin u . n fein f 3 ,0 0 0 nent nl a e o Saisic mn ipl bn pic ine. O J ly2, t is A of r go $ 2 0 ,0 0I t r aio a Ppr Cm t t t s uic a od r e dx n u 4 h ine rat indt eya'sh het b hdJnay1. pn bns wic wsshdle fo t eps mnh is dx eta e h e r ig salis e a ur 0 a y od, h h a c e u d r h at o t , 60 MONTHLY REVIEW, AUGUST 1, 1940 rpre t hv be pspndfo a les s mnh, e ot d o ae en ot o e r t at ix ot s adt eerminn lag cr oaeo mn ipl i s e n hr e a o r e opr t r uic a sus shdle fo mr e of r gint eime iaefuue c eu d r akt fein h md t t r . Sple e t g t e nwisus f ae t r uh t e up mnin h e s e lot d ho g h mr e, f ac g i a o bin ar ne inmn in akt innin s ls e g ra gd a y sacs b ngt t n o pivt s le, bn lon, o t ne y eoiaio s f r ae a s ak as r lon b t eRcnt ut nF a c Cr oaio . Te as y h eo sr cio inne opr t n h Bt le e Sel Cr oaio s ld$ 0 0 ,0 0 o t re eh hm t e opr t n o 2 ,0 0 0 f he t t nya r fud gsr l nt s bain ineet rt s o e er e nin eia oe, er g t rs ae fr m1 5 pr cn t 2 0 pr cn a na , dr g o .2 e et o .6 e e t nully uin J ly adanme o ohrpivt s le, ageain u , n u br f t e r ae a s gr gt g a les $ 0 0 ,0 0 wr rpre d r gt e mnh t at 3 ,0 0 0 , ee e ot d uin h ot . Anucmn wsmd o J ly2 o aRcnt ut n no ne e t a ae n u 7 f eo sr cio F a c Cr oaio lono $ 2 0 ,0 0t t eWig t inne opr t n a f 9 ,0 0 0 o h r h Ar nuic l Cr oaio fo p n epnio incne eo a t a opr t n r la t xas n onc t nwht e Nt nl df ne por m Te loni io it h aio a ee s r ga . h a s rpre t hv be md o abs o 4 pr cn e ot d o ae en ae n ais f e et ineetfo afv ya t r . t rs r i e er em t eCnd ndlla avne cnidr b dr gJ ly h a aia o r da cd o s ealy uin u , it d cut nro in int r s o t e Uit d Sae s ison ar w g em f h n e t t s dlla fr m1 prcn o J ly1t 1 i/i prcn o o r o 7 e e t n u o 1 e et n J ly1. B t ee do t emnhhwvr t ed cut u 9 y h n f h ot , o ee, h ison hdw e e s m ht Teewr inict n o sm a idnd o e a. hr ee d aio s f o e w fut e dmn fo S is fr ns dr gJ ly adt e rhr e ad r ws a c uin u , n h rt fo t eS is fr n, wic hdbe qoe a aot ae r h ws a c h h a en ut d t bu $.26 a t ebg n go t emnhs beunlyrs 0 25 t h einin f h o t , usqe t oe t aot $ .2 7 . Tec re c s o t einae cu o bu 0 2 5 h urnie f h vdd on tie o t eCninn, woehld g ae“b c e ’’ in r s n h o t e t hs o ins r lokd t ismr e, rminduqoe . h akt e a e nut d G o ld M o v e m e n ts I prs o gldino t eUit dSae dr gJ ly mot f o t h n e t t s uin u wr cnidr b s a r t a inJn, bt wht a ee o s ealy mlle hn ue u it ht ecpio, apa t hv be t elags sneAr xe t n per o ae en h r et i c pil, 13. Gldhldudr er akfo foe nacut a 99 o e ne amr r r ig con t t eFdr l Rsr eBnsinrae aot $ 0 0 ,0 0 h e ea eev a k cesd bu 6 ,0 0 0 fo t emnh rah gat t l o aot $ ,7 5 0 ,0 0 r h o t , ec in oa f bu 1 6 ,0 0 0 F o re ig n E x c h a n g e s a t ee do J ly Te i ces int e gldsoko t h n f u . h nrae h o t c f Mc o wa rmindo t eNwYr mr e fo t eUit dSae d r gt eps mnha o ne t uh f ht e a e f h e ok akt r h n e t t s uin h at o t mut d o uof ia selin wse int ddr gt eps mnh a poimt ly $0 ,0 0 0 , t e lags gin wht e nfic l t r g a lim ae uin h at ot pr x ae 5 0 0 ,0 0 h r et a , it h a t ers lt o ad io a Bit hec ag rsr t n, ecpio o Jn, sneAr 13. s h eu f dit nl r is xhne et icio s xe t n f ue i c pil, 99 wic wr a nucdo J ly 1 a dt o ef c o A rpre b t eDprmn o Cmec, at t l h h ee none n u 5 n ok fet n s e ot d y h e at e t f o m e oa r J ly1. Frhrlimaio swr p cdo t epr oe o $ 1 ,2 0 0 o gldws imot dino t e Uit d u 8 ut e it t n ee lae nh upss f 4 8 0 ,0 0 f o a pre t h n e fo wic eisin fre akt selin blacs cu Sae dr g t e we e dd Jn 2, o wic r h h x t g e-mr e t r g a ne old t t s uin h ek ne ue 6 f h h b ue, adseswr t knt rsr tfuueac m $ 4 ,6 0 0 cm fr mFa c, $ 0 ,4 0 0 fr mt e e sd n t p ee ae o et ic t r cu u 2 1 0 ,0 0 a e o r ne 1 1 0 ,0 0 o h laios o s c selin fo A eic nacut Poi Uit d K g o , ad $ 6 0 ,0 0 fr mCnd. I t n f uh t r g r mr a con. r v n e indm n 6 ,8 0 0 o a aa n so ws a o md fo t e oe in b Uit d Sae t e fo w g fo r wes e dd J ly 2 imot i n a ls ae r h pn g y n e t t s h llo in u ek ne u 4 prs bns o “r g t r d selin acut wh Bit h t t le $6 ,0 0 0 . 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A eic ncmec l bns wr rpre t 4 3/2 mr a o m ia ak ee e ot d r t hv da inofca selin o t ebs o b y g F o reig n T ra d e o ae elt fi i l t r g n h ais f uin ads llin rt s o $.0 a d$ .0 , rs et e , fo n e g ae f 4 2 n 4 4 epcivly r cb t a s r. 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Sae acut a dt sll it e hr t Uit d Sae Eprso ir na dsels m a uat rs mt l-wr t t s cons n o e it e o n e t t s x ot f o n t e e imnf cue, ea ok acut o t cra foe ncut ie, a s c selin in mc inr ,wo a dpprpo ut , ca a da m cons r o et in r ig onr s s uh t r g g ah ey od n a e r dcs ol, n lu i mysill b ue fo smpr oe, inluin t es tle nm o t udwll aoet elee o aya ao O a t e sd r o e ups s c d g h et u cnine T bv h vls f er g. n e m t o cra o t t nin cmit e t. Dr gt e t eohrhn, ms fodeprsrminds a e f et in usa d g o mmns uin h h t e a d ot o xot e a e mll. n mot uin ue ee a e t 2 1 0 ,0 0 rmine o J lyt er t mvdire u r wh a I prs dr g Jn wr vlud a $1 ,0 0 0 , e a dr f u h ae oe r g laly it in rneo $ .7 % $ .9 , a dws qoe a t ee do a poimt lyt es ma o n a int epeio smnh ag f 3 3 —3 2 n a ut d t h n f pr x ae h a e mut s h rv u ot , bt1 prcnmr t a inJn o latya. Rflet g u 8 e e t oe hn ue f s er e cin t emnha aot $.8. h ot t bu 3 2 Apr nlya t er s lt o inrae t uis dmn, prhssfo df nepr oe, imot o s c sr t g p ae t s h eu f cesd o r t e ad uc ae r ee s ups s prs f uh t aeic FEDERAL RESERVE BANK OF NEW YORK 61 mt r ls a t , cue r be, f ro a gns , ad E m p lo y m e n t a n d P a y ro lls aeia s in r d ubr er -mna ee n n kl s o e inrae oe My adwr epc lly E p y e t inNwYr Sae f coie ws litle ic e hwd cess vr a n ee s eia a lag cmae wh Jn o lat ya. I ad io , c agdbtn nMe a dJnt a huhts rasuu r e o prd it ue f s er n dit n h mlom e a nok e tlt ot r h i t e imot o liqos inluin lag qa t ie whr w a nedcwe t t y t euf ,t e ya, aeears prs f ur, c d g r e unit s it da n lly a elin a h im o h eg n pyo is r lls fr mbne wrhue pio t t e ley o t e nw inrae l1ee cn, cnr r t t euul dpr ne o odd ae oss r r o h v f h e ^ ax df net x wr aot t ic a lag a ine hr t e inJn. Cmae t itoJae 13, 9preeeie c ee s a, ee bu we s r e s it e h cesd / pr e whtu y o h s e cn m e e 9 o r peio smnho inJn, 13. Avne oe Mya d wrus wr e pde , adn,yo 9wr 1 pt cn rv u ot r ue 99 da cs vr a n okr o pr y e a r aya aowr a orcr e inimot o uc t ad h hr ee mlo d n p r lls ee 4 e et er g ee ls eodd prs f nu n ig e. inut ia d mns cca a dvgt b o . Rcips A in ohr rcn mnh, t ee wr s bt nia dsr l ia od, oo, n eeale ils ee t s e t l o nwpin ppr ind leepesdo , wo b r p e p y et gin inJnotfathr weeausa ta f e s r t a e, e ib xrse ils ol, ula , mlomn e s e t ea s oie hs civ yhs ta u c r s oe t it a dbe ctle t og s a rt a inMy wr s b be simlae d et o inir clyb t eEr pa n ef at , huh mlle hn a, ee u e sa t llyaoet elee o aya ao O t eohr wrat tuNt nldly s pdr m Sipad, mt n t nia bv h vls f er g. n h t e enn h t d ir c f nr r get. y h r uoea a d e aio a ee e o a h y s l hn, imot o s , cfe, f xed s gr m t wr in p n , n f t r s po uin ir la e, a ad prs f ilk of e lase, ua, e a g pout, c t d mns adt emjoit o mnfa cokyalars adecipien cnine a adtstm r dcs u ia od, n h a r y f a u c h e g n tilr a a o e tr dcudt p no hir inr , o t rd gos wr s a r t a in e hr t e peio s wr in foca indau mp y tn int eplpad ue od ee mlle hn it e h rv u ok g de; oceqde lom t o du e rs rs m e e h n mnho Jn, 13. o t r ue 9 9 pr d t a ls eu e r h w in s lt A epnio fr m 4 ,0 0 0 inMyt $ 7 0 ,0 0 ta eiruueyhaioorsuo eo st eea f w gt. n xa s n o $ 9 0 ,0 0 a o 7 ,0 0 0 pev in lsr intano Erdfamucsroup o f n o o ply i Jn i s ip e t t t eUit dK g o , inluin I a d io , m epros wr pnae r Jnsint e n ue n h mns o h n e indm c d g h dt a lim it r e g h epc llywrmt r ls wsa n s fic n t acut sao a nciv f espoueengdild g mt r l s eia a aeia , a loe uf iet o con ns nlly ato od n dcs adb in ueaeia e e o r t u in fo t einraeint isc u t y t t l eprs I a d dsr s ep inrae at y tmn c t in r h ces h o nr ’s oa xot. n di g t neprst Fa c, pio t t ec p u t necee inutt eaDse er uesdwoitcaineditlohr io, xot o r ne r r o h a it laio , xedd f m ie. pa itgoc a a civ ot u ’s ssh p ir s h prl p s hle n e , a b $ ,0 0 0 t e vlu o eprs dr g t e e t e e o l r ut y 8 0 ,0 0 h a e f xot uin h nir a n e io wr in f cs ad et ills o go mnho My ads ip e t o A eic npout t slssea lodceninokk t a re,an t xile m ot f a, n h mns f mr a r dcs o e r Rsiawr lag incmais nwht es a vlu e aI m cufr es awo hningic.lt r l e p y us ee r e o pr o it h mll o m o tp ydtwrwr es , nnMy ua mlo n h o n y a hle o ar u e o t epeio smnh Uit dSae eprst Fa c, m t ce e ew nMya dJn y pr x t ly f h rv u ot . n e t t s xot o r ne e t eUit dK g o , adCnd a os o e mr e 2e,0inresdbtTe Ba ano uab at toicaew h n e indm n aaa ls hwd akd 3n0 paos ee ueu f Lbr Spisimn 5 0 r n. h r s o a ts o dlla gin oe Jn o latya. o r a s vr ue f s er s e bu 3 0 ,0 ok s p ydin I ces deprs t Lt A eic hv a obe a atnaarhtuatc5p0 0—vrr0r0mloehn nrae xot o ain mr a ae ls en e imt st a ao oc,5aio0wr e9aeemr t a ll o gic lt r l u t n oe 0 0 oe n u s ,0 cnidr b fat rinmina in Uit dSae epr i Jn, 13 a huha poimt ly30 0 lest a os eale co a t in g n e t t s xot p t ae int ef c o losso cra cninna Er inlatee9me. o g mjo xld ef e7,00es, wh r d, h ae f se f et in o t e t l uo n u Dc 9 lt A a r f ao mlomn hn s e br ll r ie s p t pa mr es sne t e wr bgn Fr t e t e e h e e t n f m g e ot di cessy wr itg en akt i c h a ea. o h wlv e x pio in pr e k mnh e ddJn, 14, mrhnis eprsfr mh t re ceweoMyindruee Mnfat ingosin ot s ne ue 90 ec ad e xot o t e f cs bt en a a , Jn. nracuin et b o n au r Uit dSae t Lt A eic a one t $5,0 0 0 , lis m t add5 ,00prost t e wr in f ra, n e t t s o ain mr a mut d o 77 0 ,0 0 n de 2 e o o g s o a poimt ly2 prcn o eprst a cutie. ahohs s bt nia0mlomn ghiroc ke ince r pr x ae 0 e e t f xot o ll onr s n e e usa t l e p s n t a s curd ocn in A i inict dint efo w gt b , eprs t Lt sr ct nwr , inwo s leadrt il t ar int a s s s d ae h llo in ale xot o ain td t r ok hleay e ea r d, ro n e n A eic s o e a inraeo 3 prcn oe t ecr praio adpb uilit s adinFdr l, Sae ad mr a hwd n ces f 8 e et vr h o u io n rs o d gpr do 1 3-3, a cmae whagin loa toen eusric. ie, n e ea t t , n epnin eio f 98 9 s o prd it a ot gvrn n lic t l v o 3 prcn ineprst a ohrcut ie. W t e ch inrm t eh eu br o pros e p ydi f 0 e et xot o ll t e onr s ith h a s ecpio o t eNt ela d Ws I d s a o t eled UTe Saeeattienmeo t aesot e uul sa xe t n f h ehr ns et nie, ll f h a n e ces fin re ws cnf r tnhmloe en o in Lt A eic ncutie prhsdm efr mt e s nldete c, cn s ea wsrls a cnrsesnl g ain mr a onr s uc ae o o h oit t n t y ad t r a a y ota a oa r a dn he o sa Uit dSae int e13-4 pr dt a int epee in n e t t s h 99 0 eio hn h rcd g t e e mnh; t e i cess r ne fr m1 pr cn wlv o t s h nrae a gd o 7 e et fo Clo b t 6 prcn fo Bail. A ars lto t e r o mia o 7 e et r r z s eu f h lag gin ineprst BailadAgnin in13-4, r e a s xot o r z n r e t a 99 0 t eecut ie rp cdCb a dM ic, wic hldt e hs onr s e lae ua n e o h h e h x t pps io sin13-3, a t et obs Lt A eicn o oit n 98 9 s h w et ain mr a c so eso t eUit dSae. ut m f h n e t t s r PER CENT Merchandise Exports fro m the U nited States Value in m illion s of dollars Ju ly, 1938June, 1939 (incl.) Ju ly, 1939June, 1940 (incl.) Percentage change L a tin Am erican countries (to ta l) ........... B ra z il........................................................ A rg e n tin a ................................................. C u b a ......................................................... M e x ic o ...................................................... Venezuela................................................. C olo m bia ................................................. C h ile ......................................................... Netherlands W est In d ie s ..................... A ll other L a tin Am erican countries. . 547.8 64.7 64.8 72.3 6 7.8 52.0 4 6.3 23.3 39.5 117.1 756.8 108.0 107.4 88.5 8 7.6 6 9.4 54.4 37.7 3 2.4 171.4 +38 +67 +66 +22 +29 +33 +17 +62 — 18 +46 A ll other countries..................................... 2,371.2 3,072.1 +30 A ll co un trie s................................................ 2,919.0 3,828.9 +31 D estination Total Factory Employment in the United States, Compared with Employment in Manufacture of Aircraft and Machine Tools, and in Shipbuilding, Adjusted for Seasonal Variation (Bureau of Labor Statistics data, converted to a 1935-39 base of 100) 62 MONTHLY REVIEW, AUGUST 1, 1940 i ces int ea o n o fat r pyo bt enMy THOUSANDS nrae h mut f coy ar lls ewe a adJn. Cmae whJn aya aot t lfat r OFCARS n ue o prd it ue er g, oa coy e p y e t ws 7 pr cn h hr a dpyo wr mlomn a e e t ig e n ar lls ee 1 prcn get r Sao a f coslaglyacut d 3 e e t rae. es nl at r r e cone fo t e My t Jn inrae ine p y e t int e r h a o ue cess mlomn h cnin a d peev g inut y a d fo s bt nia a n g n r s r in dsr n r usa t l dcess in e p y e t b mnfat rr o a t erae mlomn y a u cues f uo mb s wmn c t in, cto gos adf rilizr, oile, o e ’s loh g ot n od, n et es wilet ewra dt eNt nl df nepor meue h h a n h aio a ee s r ga rs lt d inepnin wr in focsincra ohrinut ie. x a d g ok g re et in t e dsr s Te f r gin d ga inict s t e r p epnio h oeo g iar m d ae h a id xas n o e p y e t in a ca fat r s s ipad, ad f mlomn irr ft coie, h yr s n mc in t o s os in rcn mnh—vn a t e ah e ol hp ee t ot s ee t im s we fat r e p y e t a a wo ws dc in. hn coy mlomn s hle a elin g Ahuht t lfat r e p y e ti sillwllblo t e lt o g oa coy mlomn s t e e wh h hlee rahdint e s me o 13, s ipad ig vl ec e h u mr f 97 h yr s admc in t o p nsnwe p yaot 4 prcn n ah e ol la t o mlo bu 0 e et mr pros t a in13, adt e a ca inut y oe es n hn 97 n h ir r ft dsr hsnalyt ip dit wr in f re s c t a t e a er r le s ok g ocs ine ht im. s ee , a huh ai efr mas ut o J ly 3, sle idrd lt o g , sd o pr n u 1 a s P ro d u c tio n a n d T ra d e r nwll blo po ut n I d aio s aet a dpr a e e w r dcio . nic t n r ht e at n t es le dc dn o e J din b pe inr dt nwaa b , bsns m t slyha svllinJn.mr t a uul fr mt e ug g y r lim ay aa o vilale ui es re t er ig lee oeuo oe hn s a o h h f e at it inJ lyapast hv hldt eavne lee e iv civ y u per o ae e h da cd vl la ep e h s vr b r s et r n e t t s at ind in Jn. Eah g 9 pr cn o cpc y Ds it t elesfaoalepopc fo Uit dSae ta e ue ec in 0 e et f aait t wr t e e do t e mnh t e h hs rt o t e epr t aet Er p a ars lt o wrdvlomns o ad h n f h ot , h iget ae f h x ot r d o uo e s eu f a ee p e t, ya, sel ino po ut n cmae faoa ly wh t ee ws a acleae rs inbs es at it b er t e gt r dcio o prd vr b it hr a n ce rt d i e uins civ y e Jn ds it t euul t ne c fo oeaios t cn t enMy a dJn. Te cmrhniv ine cm ue ep e h s a e dny r pr t n o o we a n ue h o pe e s e dx o t atinJ ly I se spoalet a at it inanm pt da t isbn, cmoe o 8 sre o pout n r c u . t em r bb ht civ y u ue t h ak o psd f 3 ei s f r dcio bro ohrinut ie, d et simlae b wr ad adt ae avne 3pins oe Myt 9 pr cn e f t e dsr s ircly t u t d y a n n r d, da cd o t vr a o 1 e e t Nt nl df neodr, wsa omina e bte t a o et ae lo gt r t e d Tis cmae wh8 aio a ee s r es a ls a t ind et r hn f simt d n em rn. h o prs it 4 uul. At mb asmlie dc e r p ly lae i i Jn, 13 adah ho 9 lat Dcme. s a uo oile se b s elind a id t n n ue 99 n ig f 5 s ee br ik a, ue a hr ceizd y nrae n t emnha s udwsinpe aaio fo t epo u L e My Jn ws c aat r e b i cess i h ot s ht o n rpr t n r h r dc t no 14 mdls oc re , bt rt il s le o nw at it — a y cnr saoa innt r— inut ie io f 91 oe curd u ea a s f e civ y mn otaes nl aue in dsr s pse gr cr—at a les o in t epcaios wic aerciv ginrae dmns fo t e po asne as prly t at w g o xet t n h h r ee in cesd e ad r hir r d o h hrpics wr rpre t hv be mina e ut, inoewyo aohr a ar s lt o t ewr o f ig e r e— ee e ot d o ae en a t ind cs n a r nt e s eu f h a, r s lt a e s p d s n di ecpio a wll, rs lt g in cnidrb rdcio tsn rhr oa aioo oecduxunit rr.t il t a e xe t nlly e eu in os eale e ut n a a eu f Nt nl df neeten ue I a d r n innwcrsok. O asaoa a jut dbs , r il io, t ee ws a p nu e p r in ea r d, e a t c s n es nlly d se ais a wyfr ig t tafc ade cr pwr pout nwr saoa f coscnidrd adint ef wo gos in a e h rfi n letic o e r dcio ee es nl at r os ee , n h lo f od ntmc c agdfr mh Jn lee wileb u inu pimr d t ibt nc anls I pout nt elags o uh hne o t e ue vls h it m o s r ay isr uio hne . n r dcio , h r et ca m in wss m ht h hr Cto m at it inrae oc re int e o t u o po ues dr b ol in g a o e a ig e. ot n ill civ y ces curd h upt f r d cr’ uale w a prnly ws wll mina e , saoa fat r cn gos rf cin pric lalya 1 prcn gininsel pae t a e a t ind es nl cos o- od, elet g at u r n 8 e et a t e ino po ut nadc nina epnin oeaios gt r dcio n o t ully x a d g pr t n i s ipad, a p n fat r s admc in t o p ns n h yr s ir la e coie, n ah e ol la t . A o glins c sif da po ues nnuale gos mn e las ie s r d cr’ o dr b od inut ie, cto m rdcd oeaios les t a dsr s ot n ills e ue pr t n s hn uul adwo nm , rs o d gt e lagdrqir s a n ole ills epnin o n r e e u e m t o t e Nt nl df ne por m et ne t e e s f h aio a ee s r ga , xe dd h n s apr et a bgninMy hr is ht ea a. Fe h crlod g adin n wt r a tafc in r ig t a a ins n la d aewy rfi cesdfut e inJn, rf cin epne at it i rae rhr ue elet g xa dd civ y n pimr t a e c anls Dprmn soe s le d r ay r d hne . e at e t t r a s e c e mc les t a uul adohr t ps o rt il lind uh s hn s a n t e y e f ea ot t fo wic dt aeaa b a os o e fa o ules r h h aa r vilale ls hwd v r ale cmais n wh My A is inict d in t e b o pr os it a. s d ae h c at aoe r t il s le o nw pse gr cr in hr bv, ea a s f e asne as Jn dv t d fr mt e uul saoa pten ad ue eiae o h s a es nl at r n mvduwr fr mt eMylee t ef s t et a oe p ad o h a vl, h irt im ht t ishsoc re snet edt o nw oe inr dc h a curd i c h ae f e mdl t o u t n wsmvdfowr in13. Teb y gs ut in ios a oe r ad 95 h uin pr Jn a pr nly ws as c t dinpr whepca ue pae t a soiae at it xet t n o h hr pics o 14 mdls (cra mkr ios f ig e r e n 90 oe et in aes hv a ed a nucdh hr pic s Nwcr sle ae lra y none ig e r e). e a a s Retail Sales of New Passenger Automobiles (Automobile Manufac turers’ Association data) PER CENT Index of Production and Trade in the United States (Federal Reserve Bank of New York index, expressed as a percentage of estimated long term trend, and adjusted for seasonal variation) 63 FEDERAL RESERVE BANK OF NEW YORK cnine cnidr b aoe t oe int e crepn dw s ap fr mh peio smnhadwr s hly ot ud os ealy bv hs h ors o d o n hr ly o t e rv u ot n ee lig t in pr d in13 ad13 adapoc e t eJn, lest a inJn, 13. Cnr c a ad fo pb p r g eios 98 n 99 n pr ahd h ue s hn ue 99 o t at wr s r ulic u ps bild g t og 1 pr cn aoet eMyr t , oe u in, huh 3 e e t bv h a ae 13, lee 97 vl. rg t rda2 prcn dc efr m ya ao eisee 0 e e t elin o a er g. I t eNwYr a dNrhr NwJre ae, t e n h e ok n ot en e es y ra h dilyr t a wic cnt ut ncnr cswr a add a ae t h h o sr cio ot at ee wr e dr gJn ws1 prcn blo t eMyaeae bt uin ue a 4 e e t e wh a vr g, u 1 prcn h hrt a inJn o latya. Lr e o 1 e e t ig e hn ue f s er agly n acuto adc eina at e thuecnr csint is con f elin prmn os ot at h ae, rs e t l b ild g a ad wr ao t o e h d ra eidnia u in wr s ee bu n-t ir lest a int epeio smnh a ds o e ardcio s hn h rv u o t , n hwd e ut n o 1 pr cn fr mJn, 13. Cnr c a ad fo f 1 e e t o ue 99 o t at wr s r inut ia b ild ga dpb wr spo cs a owr dsr l u in n ulic ok r jet ls ee lo e t a ine hrt epeio s mnho aya ao wr hn it e h rv u o t r er g. Hwvr o in t a$ ,0 0 0 a adinJn fo t e o ee, w g o 4 0 ,0 0 wr ue r h e int no ar ilr a gaecos ginu-SaeNw lim aio f a od r d r sin p t t e Yr , cnt ut n cnr cs fo pb uilit s wr ok osr cio ot at r ulic t ie ee s bt nia lagr t a inMy a dmn t e t e usa t lly r e hn a n a y ims h s a f ue o Jn lat ya. Cmais n inpb mll igr f ue s er o pr o s ulic pr oeb ild gwr f vr b , whbt rcn mnh ups u in ee aoale it oh ee t ot s adJn, 13. n ue 99 Frt ef s s mnh o 14, t t l cnr c a ad o h irt ix ot s f 90 oa o t at wr s int e3 Sae wr 4pr cn blo t elee int e h 7 t t s ee e e t e wh vl h crepnin mnh o 13. Tedces dr gt is ors o d g ot s f 99 h erae uin h pr dfo Nw oka dNrhr Nw es ya one eio r e Yr n ot en e Jre mut d t 2 prcn, b t inohraescvrdb t eDde o 2 e e t u t e ra oee y h o g rprs t t l a ad wr a poimt lyt es m a i e ot, oa wr s ee pr x ae h a e s n t e f s s mnh o 13. A is inic t d in t e h irt ix ot s f 99 s d ae h acma y gt b , t edces inageaecnt u co pnin ale h erae grgt o sr c t na ad inNw okadNrhr Nw es yws io wr s e Yr n ot en e Jre a pric ae int smet n b a t emjo cnt u at ipt d o o e xe t y ll h a r o sr c t n c sif aios ecp inut ia b ild g wic io las ict n xe t dsr l u in, h h inrae s ap . I ohraes t eef c o dcess cesd hr ly n t e ra, h fet f erae ina ad fo pb pr oe b ild g a dhaye wr s r ulic ups u in n ev n g er gpo cs ws ofe b inrae incnr cs inein r jet a fst y cess ot at fo rs e t l, cmec l, adinut ia b ild g r eidnia o m ia n dsr l u in. r (A djusted for seasonal variations and estim ated long tre n d ; series reported in dollars are also ad justed for price changes) 1939 1940 June A p ril M ay June 84 87 88 p 91 p 68 92 75 91 80 p 93 p 86 p 95 p C onsu m ers’ durable g o o d s........................... C onsum ers’ nondurable g o o d s ................... 59 93 69 94 69 p 95 p 68 p 96 p P rim ary d istrib u tion ............................................ D istribution to consu m er................................... 78 90 82 91 85 p 9 2p 90 p 96p In d ex o f Production and Trade............................. P roduction of: Producers’ durable g o o d s ............................. Producers’ nondurable g o o d s ..................... Industrial Production S te e l................................................................................ A utom ob iles r ............................................................. B itu m in ous c o a l....................................................... C rude p etroleu m ..................................................... Electric p o w e r .......................................................... C o tto n con su m p tion ............................................. W o o l c o n su m p tion ................................................. S hoes............................................................................... M e a t p a c k in g ............................................................ T o b acco products r ............................................... 71 67 78r 86 93 97 112 106r 92 94 71 80 101 94 96 98 73 87 101 96 22* 99 88 89 p 101 94 110 78 94p 90p 99 p 102 97 p 97 p 102 99 Manufacturing Em ploym ent E m p lo y m e n t.............................................................. M an -h o u rs of e m p lo y m e n t............................... 88 81 92 86 92 86 93 p 87 p 41 45 46 48 52 56 53 54 79 84 100 70 81 91 100 71 85 93 11 3p 81p 87 96 92 92 87 85 96 96 98 78 89 97 p 102 100 96 59 57 58 54 33 28r 27r 24 83 p 114p 83 p 114p Construction Residential building contracts ..................... Nonresidential building and engineering c on tracts................................................................. P rim a ry Distribution R y . freight car loadings, m dse, and m isc. r R y . freight car loadings, other r ................... E x p o r ts .......................................................................... I m p o r t s ......................................................................... 77 76 86r 74 Distribution to Consumer D e p a rtm e n t store sales (U . S .) r .................. G rocery chain store sales................................... V ariety chain store sales.................................... M a il order house sales r ..................................... N e w passenger car sales r .................................. 86 96 94 99 68 Velocity o f D ep osits* V elocity of d em an d deposits, outside N ew Y o r k C ity ( 1 9 1 9 -2 5 average = 100) . . V elocity of dem an d deposits, N e w Y o r k C ity (1 9 1 9 -2 5 average = 1 0 0 ) ................. Cost o f Living and W a ges* C o st of living (19 26 average = 1 0 0 ) .......... W a g e rates (19 26 average = 1 0 0 ) ............... p Prelim inary r R evised 82 111 83 114 86 84 99 91 * N o t ad ju sted for trend B ild g u in Sm acleaio int evlu eo cnt ut nwr o e ce r t n h o m f o sr cio ok bin in iae wsa pr n int eF W DdeCr o e g it t d a pae t h . . o g op r t nf ue o cnr csa addin3 Sae dr g aio igrs f ot at wr e 7 t t s uin J n; t e dily aeae r t o cnt ut n cnr c u e h a vr g ae f osr cio ot at a ad o a c se ws7prcn lagrt a inMy wr s f ll lass a e e t r e hn a ad1 prcn aoet eJn, 13 lee O in t t e n 3 e e t bv h ue 99 vl. w g o h inluio int eJn t t l o $ 3 0 ,0 0fo dvloin c s n h ue oa f 2 ,0 0 0 r ee p g anvl a t a in saio inTxs t epo ot no aa ir r in g t t n ea, h r prio f p b lyf acdt t t l cnt ut ncnr csrs in ulic inne o oa o sr cio ot at oe Jn t 4 pr cn, t eh hs pre t g inrcn ue o 5 e e t h ig et ecnae ee t mnh. A cnidr b prio o t e a t a in ot s os eale ot n f h ir r in g po c wsa ct dt t epb uilit adcmec l r jet a lloae o h ulic t y n o m ia r b ild g ct gr s s t a t t l a ad in t ee t o u in aeoie, o ht oa wr s hs w t ps o cnt ut ns o e lag gin oe bt t e y e f osr cio hwd r e a s vr oh h peios mnha daya ao Rs e t l b ild g rv u ot n er g. eidnia u in cnr cs wiles bt nia uc a gdfr mt eMy ot at, h usa t lly nhne o h a aeae wr 2 pr cn h hr t a inJn o lat vr g, ee 1 e e t ig e hn ue f s ya. O t eohrhn, inut ia b ild ga ad wr er nh t e a d dsr l u in wr s ee P ercentage C hanges in C onstruction C ontract A w ards First six m onths of 1940 com pared w ith corresponding period of 19 39 N . Y . and N orthern N . J. Other areas 37 States P ublic p u r p o se *............................. A ll b u ild in g ................................. — 17 — 4 +91. — 47 — 21 +15 +30 +42 — 33 + 6 + 7 +23 +48 — 37 0 Engineering P ublic w ork s.................................... P ublic u tilities................................ A ll engineering.......................... — 19 —42 — 27 — 7 — 25 — 11 — 9 — 28 — 14 A ll con stru ction ....................... — 22 Building R e sid en tial....................................... C o m m e rcia l...................................... 0 — 4 * Includes educational, hospital, public, religious and m em orial, and social and recreational building. Tedilyr t o cnr c a ad int e3 Sae cn h a ae f o t at wr s h 7 t t s o t udt epn dr g t e f s t o wes o J ly ine o x a d uin h irt w ek f u , s o in a inraeo 1 prcn oe t eJn aeae hw g n ces f 1 e e t vr h ue vr g ado 2 prcn oe t ecmaaleweso J lyo n f 6 e et vr h o pr b ek f u f lat ya. s er C o m m o d ity P ric e s Picso ms bs cmoit st ne t wr lo e r e f ot aic o md ie e dd o ad wr lee dr gJ ly t sm dge rf cin lesfa o vls uin u , o o e ere elet g s v r alepopcsfo Uit dSae epr t aea ars lt b r s et r n e t t s x ot r d s eu 64 M O N T H L Y R E V IE W , A U G U S T 1, 1940 o wr dvlomns Te Br a o Lbr Saisic qoa a arcr h ho 10 pr cn, t pics in f a ee p e t. h ueu f ao t t t s ut t eod ig f 3 e e t in r e dily ine o 2 bs cmoit s dc e aot 3 NwYr dc e t a lo a 5 %cnsapudbt a dx f 8 aic o md ie elind bu e ok elind o s w s 0 et o n u pr cn fo t emnha awo , t uh gt elo et c sdt emnha 5 x cnsapud s o in afr c e et r h ot s hle o c in h ws loe h ot t 2/2 et o n, hw g a lee sneer lat Spe br vl i c aly s e t me. t nl dc e fr mt e edo Jn. La a d z c io a elin o h n f ue ed n in u s ea c ne t uhu h ot h We t pics f cut dire u r dr gJ ly r qrt tsnlrt$indanninP tho gwsden$.7. ha r e lut ae r g laly uin u , e Soaioe am8e uo agds rr ho t to mnh ca t p e 1.5 t 0 ug w1 s o d g t rprs o vr in wahr cnit n fo fr m h e t e ig vlitrb ilin a h n 5 pnin o e ot f ay g et e od ios r v t f t e go in co s qoaios s o e n mt r l Joet erlaivlyh hlee pe a ga t ee do h r w g r p; ut t n hwd o aeia u . n rat n t t eGvr mn anucmn int em d ecios o h oen e t none e t h idle o t emnho ardcdet aefo t es r gwet f h ot f e ue simt r h pin ha co ad a t esmt e a of et guwr rv io D e p a rtm e n t S to re T ra d e rp n, t h a e im n fs tin p ad eis n , int e w t r wet co et ae Sr g wet a Fr t efo r wese ddJ ly 2, t t l s le o t e h ine ha rp simt . pin ha, t o u e a 7 %cns abs e inM na o rg t rdas h rprin dprmn sne int is7isr t wr aot 7 e t uhl ineplis eisee lig t e ot h e at ek t rs uh D oic a s f h g et o t ee bu nt avne fo t e mnh w t r wet in Kna 4/1 pr cn h hr t a in t e crepnin 13 e dac r h o t ; ine ha ass e ig Cya aqoaio o 6:i cns abs e o J ly2 pr d Tedilyet hf s le fo torprio o J ly it t ut t n f 9/4 et uhl n u 3 1> e ht a r eona s h h s o d g 99 eio. a r is t n f u wsdw t anw wi c t eedo Ag s latya, hwdaot h ut mr esnl dcoefr m ue a o n o e lo sne h n f uut s er o e b o btrcvrd2 cns t c s t emnha 7 %cns sh hwsu te c sly aysaonhelinh oyJn u eoee % e t, o loe h ot t 1 et wic a aret e at e ma fo t is t p o la civ ot ef abs e O in prlyt ufaoale wahr int e rt il t ae saoiv fat r cnidrdr uhl. w g at o n vr b et e h nl s cr blt cr pics s o e cnidrb f mes eTt l Jn essaf tcor pot g dprmn soe on e , on r e hwd os eale ir ns a ar d,e sle o h s o inee.at e t t rs o u e t r uhu J ly Hgqoaio s rs o d gt t eef c i t is D t ic aeev t ae t esm a aya ao ho g o t u . o ut t n, epnin o h fet n h isr t wr ire lly r a e s er g, u h o rdcdmr eins rs o J ly8t $.6 ahnrd bta e a w gfo df rne int enme o s o f eue akt g, oe n u o 6 8 ude u ft r llo c b wigt t e h hs pic sne lat Nvme, ad p gdy bt in tr yaens s,h eu edilys le e h, h iget r e i c s oe br n, in as ewe h ife adlat a r g r f hp en is er v a a as a huh dc in pre t ly dr g t e rmine wr aot 2pr cn h h t nin ue 99 a d lt o g elin g ecpib uin h e a dr b h , o t emnh c sda $.9 ahnrd e h, 5 cns Avere a oaoet eetyigerg,a hrJns 13,hn f h o t , loe t 5 8 ude wig t 1 et ee ls ubv e M a e e weesuullyt ee h a vr a a a r aoe t e lee a t e edo Jn. Ser, hwvr i o mc c ag bt ent e w mnh S s bv h vl t h n f ue t es o ee, uh o a e rah gapa o J ly2 rat ddwwr ad o neled ghnaeewe inte tD t ictc.ninle ft r ec in ek n u , ece o n ad n s t t a in a pe l soe hsis o r t s t ad fh p r t rs h is u c sda $.6 ahnrd e h, fo ant dc eo 6 lo e t a aya ao t edc einJn a oot ge loe t 9 3 ude wig t r e elin f 2 wr hn er g, h elin ue mu in t n o cnsfo J ly et r u . x ae r . Rf cin cnine cnenoe t elos o foe n a poimt lyllaeoet o sle o t erprin d elet g ot ud ocr vr h s f r ig pret t l d7pvcne f a s f h e ot g e T oa o r lu h ot t fo A eic ncto, cmindwhm efa o prmn soe int isD t ic fo t ef s hlf o 14 ules r mr a ot n o b e it o v r at e t t rs h m r t r h irt a f 90 r alewahrrprs s o cto picsdc e dr g ws2 prcn h hrtis int ecrepnin pr d b et e e ot, pt ot n r e elind uin a .4 e et ige hn h ors o d g eio J ly Qoaio s fo s o cto a t nSuhr mr o lat ya, cmae whadces o 0 pr cn u . ut t n r pt ot n t e o t en a f s er o prd a erae f .4 e e t kt aeae 1.0 cns apud a t e e do t e bt ent ef s hlf o 13 a d13. es vr gd 0 7 et o n t h n f h ewe h irt a f it 8 n 99 9 mnh aloso 3 pinsfr mt ee do Jn. Rw ot , s f 5 o t o h n f ue a s , a $.4 apudi NwYr o J ly 1, ws ilk t 2 8 o n n e ok n u 5 a dw t t e lo et qoaio sne Jn, 13, ad o n o h ws ut t n i c ue 99 n, t og lae t nin t sailiz a aot$.5 apud huh t r e d g o t b e t bu 2 1 o n, ws of 1V cns fo t e mnha awo . Sgr a f 3 2 et r h ot s hle ua ws dw 1 pins t 2 3 cns apuda t e ed a o n 2 o t o .6 et o n t h n o J ly t e lo et lee sne Jn, 13. Pics o f u —h ws vl i c ue 92 r e f hds wr f mut lae int e mnh we f rig i e ee ir nil t h ot , hn oe n h eof r g t ne t dpest emr e. Wo qo id feins e dd o ers h akt o l u t t n, hwvr t og s m ht lo e t r uhJ ly aio s o ee, huh o e a wr ho g u w 2, s be unlyt r e uwr t c s t emnhwh 4 usqe t und p ad o loe h ot it litle nt c ag. O J ly5t eI t r aio a Rbe t e hne n u h nent nl ubr Rg laio Cmite inrae t epr isib epr eu t n o mt e cesd h ems le xot qoafr m8 pr cn t 8 pr cn o bs qoa, ut o 0 e et o 5 e et f aic ut s i odr t cme s t fo t e Uit d Sae r be n r e o o pnae r h n e t t s ubr prhs gpo r mr be qoaios wr r laivly uc ain r ga ; ubr ut t n ee e t e sed a ao n 2 11/2 cnsapud t ay t r ud et o n. Temt l mr es epc llycpe, t ne t s o h ea akt, s eia opr e dd o hw wans dr gJ ly Rflet gd in hdfoe nd ekes uin u . e cin im is e r ig e mn, t epic o epr cpe dc e fr m1.85 ad h r e f x ot opr elind o 0 7 cnsapuda t ee do Jn t 1.05cnsa t e e t o n t h n f ue o 0 2 e t t h edo J ly t elo et pic sneJn, 1 3 ; c so n f u , h ws r e i c ue 9 9 ut m s e es cpe wsrdcdo J ly2 t 1 %cnsa mlt r’ opr a e ue n u 3 o 0 et pud t elo etpic sneAg s o latya, bti o n, h ws r e i c uut f s er u n s beunt a in, a pr nlyrs o d gt mr at e usqe t r d g pae t epnin o oe civ dmn fo df ne nes rcvrdt 1 % cns a e ad r ee s ed, eoee o 1 et pud Pouescnine t qoeH 2 cnsapud o n. r dcr ot ud o ut V et o n t dm t cnu es a huhaslet t eGvr mn o o e ic os m , lt o g a o h oen e t s r ws rpre a 1 3 cns Ac ma y gt e et b a e ot d t 0/4 et. co pnin h sa lis mn o t e I t r aio a T Cm ite’s epr h e t f h nent nl in o mt e xot Percentage change fro m a year ago N e t sales L o c a lity June New Y o rk and B ro o k ly n ............... B u ffa lo ............................................... Rochester.......................................... Syracuse............................................. N orthe rn N ew Jersey..................... B rid g e p o rt......................................... Elsewhere.......................................... N orthern New Y o rk S tate........ Southern New Y o rk S tate........ C entral New Y o rk S ta te ........... Hudson R ive r V alley D is tric t . . Westchester and S ta m fo rd ........ N iagara F a lls ................................ Jan. to June — 2 .4 + 2.9 + 4 .3 + 1 3 .7 + 5.7 + 1 0 .8 + 3.1 + 5 .7 + 5.3 + 8 .8 — 2 .6 — 2 .2 + 1 0 .8 + 1.2 + 3 .9 + 5 .0 + 1 0 .0 + 4 .0 + 7 .9 + 4.9 + 9 .9 + 4 .0 + 7 .0 + 1.9 + 1.2 + 1 4 .1 Stock on hand end of m onth + + + + + + + 1.7 1.6 6 .4 3 .4 7 .7 0 .7 4.1 Per cent of accounts outstanding M a y 31 collected in June 1939 1940 4 8.8 4 4.5 57.3 4 0.4 4 1.4 39.1 36.7 46.1 4 3.2 53.7 4 0.0 3 5.8 39.2 35.7 A ll departm ent stores........ + 0 .1 + 2.4 + 2 .8 46.1 42.8 A pparel stores ................... — 6.9 — 1.6 — 6 .7 4 5.3 44.4 Indexes of D ep a rtm e n t Store Sales and Stocks, Second Federal Reserve D is tric t (1923-25 average = 100) 1939 1940 June A p ril M ay June Sales (average d a ily ), u na d ju s te d ................. Sales (average d a ily ), seasonally adjusted. . 87 90 83 90 85 88 89 92 Sfnr>1rs nnnH instpd........................... Stocks, seasonally adju ste d ............................. 72r 777- 80 78 79 77 74 78 r Revised FED ERAL RESERVE BANK OF N E W YORK M O N T H L Y R E V I E W , A U G U S T 1, 1940 Business Conditions in the U nited States (Summarized by the Board o f Governors o f the Federal Reserve System) OLUME of industrial production increased rapidly during June and rose somewhat further in the first half of July. Distribution o f commodities through retail and wholesale markets and by rail continued active. V P r o d u c t io n Index of Physical Volume of Industrial Produc tion, Adjusted for Seasonal Variation (1 9 23 25 average = 100 per cent) Indexes of Value of Department Store Sales and Stocks, Adjusted for Seasonal Variation (1 9 23 -2 5 average = 100 per cent) The B oard’s seasonally adjusted index of industrial production advanced from 106 in May to 114 in June. In that month, as in May, increases in activity were most marked in the iron and steel and textile industries where declines earlier in the year had been greatest. Steel ingot production rose from 60 per cent o f capacity at the beginning o f May to 87 per cent in the latter part o f June and was maintained at about that level in the first three weeks o f July. Production o f coke and pig iron showed similar sharp increases and iron ore shipments down the Lakes were at near-capacity levels. Demand for steel was general as most domestic steel consuming industries were operating at high rates. Exports o f steel, which had declined in April, rose to earlier high levels in May and June, amounting to about 10 per cent o f steel producing capacity. Automobile production, which had begun to decline in May, continued to decrease in June and the first half o f July reflecting in large part seasonal influences. Retail sales o f automobiles were in large volume and dealers’ stocks o f new and used cars declined from the high levels prevailing earlier. In the textile industry there was a further sharp advance in activity at woolen mills, and at cotton mills output was reduced less than seasonally. Rayon production was maintained at earlier high levels while at silk mills activity remained near the unusually low rate reached in May. Coal production continued in large volume during June, but output o f crude petroleum declined in the latter part o f the month, owing to reduced production in Texas fields. Value o f construction contract awards showed little change from May to June, according to F. W. Dodge Corporation figures for 37 Eastern States. Awards for private residential building decreased more than seasonally, following a sharp rise in May, and contracts for private nonresidential building also declined. Contracts for public construction increased further in June, owing in part to expansion in the construction o f Army and Navy air bases. D is t r i b u t io n Department store sales in June were maintained at the May level, although usually there is a considerable decline, and the B oard’ s seasonally adjusted index advanced to 93 as compared with 87 in May and a level o f about 89 earlier in the year. Sales at variety stores showed little change from May to June, continuing at the advanced level that has prevailed since the beginning o f the year. In the early part o f July department store sales declined seasonally from the June level. Freight car loadings increased further in June. Shipments o f coal and miscellaneous merchandise continued to expand and loadings o f coke, which usually decline at this season, showed a substantial rise. C o m m o d i t y P r ic e s jJ V '" * " ' 1 LV, 1 Vv\. 'A. M » v, FOODSTUFFS 1 in d u s t r ia l ' MATERIALS Prices o f a number o f industrial materials, particularly steel scrap, copper, rubber, and silk, declined from the middle o f June to the middle o f July. Wheat prices also showed decreases in this period, while prices o f livestock and products advanced owing partly to seasonal influences. A v Federal Reserve Groupings of Wholesale Prices of Industrial Materials and Foodstuffs, Com puted from Bureau of Labor Statistics Data (1926 = 100 per cent) g r ic u l t u r e Production of major crops this season, according to the July 1 report of the Department o f Agriculture, may be slightly lower than last season. Tobacco production will be sharply reduced from last year, when the crop was unusually large. Domestic supplies o f wheat and other field crops as well as o f vegetables and fruit are expected to show little change from last season. Indicated hog production this year will be about 10 per cent smaller than last year. B a n k C r e d it Total loans and investments at reporting member banks in 101 leading cities increased during the five weeks ended July 10, chiefly as a result of increases in holdings o f short term United States Government obligations and in commercial loans. Holdings o f United States Government bonds and loans to security brokers and dealers declined. The monetary gold stock increased by $885,000,000 in this five week period, the largest gold acquisition for any corresponding period on record. This inflow of gold was reflected in a growth o f $310,000,000 in foreign bank balances with the Federal Reserve Banks and in increased deposits and reserves of member banks. On July 10, excess reserves of member banks amounted to $6,833,000,000. G o v e r n m e n t S e c u r it y M a r k e t 1934 >935 1936 1937 1938 1939 Money Rates in New York City 1940 Prices o f Government securities, which had advanced sharply in June, showed further increases after July 8 when the Treasury announced a new bond issue for cash subscription. Between June 10 and July 15 the price of the 1960-65 bonds rose about 3 points, and the yield on this issue declined from 2.52 per cent to 2.34 per cent as compared with 2.26 per cent at the year’s peak in prices on April 2.
@FedFRASER