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M O NTHLY

R E V IE W

of Credit and Business Conditions
Second Federal Reserve District

F d ra E s rv B n ,N wY rk
e e l ee e a k e o

Dc me 1 9 1
ee b r ,1 4

t e c so es i.e cra f r ig acut ue bl­
hir ut mr, ., et in oe n cons sd a
acso dpst wht eFdr l Rsr eBn t py
ne n e oi it h e ea eev a k o a
O Nvme 1t ei ces inpre t gso rqi e fo Tes r b a addt t e , a dbnsa dohr
n oe br , h nrae ecnae f e urd r rauy ills wr e o hm n ak n t e
rsre aa s mme bn dpst, wic hdbe i vsosinprso t ecut yo ti eNw okCy
eevs gint e br ak e ois h h a en net r at f h o nr usd e Yr it
a nucdo Spe br 2, wn i t ef c. Ecs a o wr a add s bt nia a ons o t e nw
none n e t me 4 e t no fet xes ls ee wr e usa t l mut f h e
rsre o Cnr lRsreNw okCybns wi h Tes r b i s e.
eevs f e t a eev e Yr it ak, hc r auy ill sus
hda one t $ ,3 5 0 ,0 0o t epeio swe ly Ma wi , fut e i cessinc re c o tt nin
a mut d o 1 4 ,0 0 0 n h rv u ek
h
ny u a d g
rpr dt , Ot br 2, do pd t $ 1 ,0 0 0 o dregNvme hninraeasr mdrt smut
e ot ae coe 9 r pe o 9 5 0 ,0 0 n uinn ole brc r ne t bouroeaea o ns
e r o t ud o b
Nvme 1 lagly a ar s lt o t ers inrsre o bn rsre inNwYr . Frhr oe t eews
oe br , r e s eu f h i e eev
a
k
hr
rqirmns ado Nvme 5a one t $ 7 ,0 0 sfm ntee uso int eomuuoemr-t w bn
e u e e t, n n oe br mut d o 7 5 0 ,- o e k revt n e h a on tf o t f,o n aa
e dci
t u-o
00 A t eacma yn d ga i d ae, t i a on blacs hldinNwYr C y bns a huht k
0. s h co pni g iar mnict s hs mut a ne
o
a
e
wsoe $ ,0 0 0 ,0 0lest a t eecs rsre hld a on o e edce wskuit lest a inoet re
a vr 1 0 ,0 0 0 s hn h xes eevs e mut f t eli e a mc s k,nlt t g hh
h n
h h
h e
inSpe brad$ ,8 0 0 ,0 0lest a a t eJnay wese ddNvme 5
e t me n 2 0 ,0 0 0 s hn t h a ur ek ne oe br .
hg pin o t eya.
i h o t f h er
h a o n f r epr f t e w s
e
t
s
Ecs rsre o m br bns o tid NwYr TTs rbbpioyouesgusd oehYe wusrf
xes eevs f e e ak us e e ok r auys r t b bala o tae Nw nk iae o
m
e
ills
yr i
o s po
r
­
Cy dc nd f o $ ,2 5 0 ,0 0 o Ot br 2 t mt db ars iny ld, wic fo t elat t oi s e
it eli e r m 3 5 ,0 0 0 n coe 9 o oe y i e ie s h h r h s w sus
$ ,6 5 0 ,0 0o Nvme 5 A i ei e t f o t e inNvme aeae s hlyaoe%o oeprcn.
2 3 ,0 0 0 n oe br . s s vdn r m h
e
g
v
d ga , hwvr ecs rsre oti e NwYr Tis rs bry ld a pas t bae be nt ibtele
iar m o ee, xes eevs usd e ok h oi e in vrs d lig t o hv ef a re a t
ie per
t
Cyhdnt pe io s dc nda t e hdinNw t svr l fat r: t e i ces int e a on o t e
it a o r v uly eli e s hy a
e o eea cos h nrae h n ut u b
m fh
Yr C y bt hdrmi e fa lysed a aot t e we ly is e o Te s r b f o $ 0 ,0 0 0 t
ok it , u a e and ir t a y t bu h
r
0
sm gnr l lee a a t e oe i g o t e ya. $e0 0 ,0u af t e uy$ ills 0 ,0 0 1 0 rcn in
a e e ea vl s t h pnn f h er 1 k 0s0 n ha t 2 0 r m; t e 0 ,0t o
5 ,0 0 d n o 0 ,0 0 0 h ee ­
V t a a o t edc n int et t l o ecs rsre ces inm brbn rsr erqi e e tpre t gs
irully ll f h eli e h oa f xes eevs
e
m
e
o a m brbnsint ef s t nmnh o t eya wi hepc llyaaceet eNwYr noeymret
f ll e e ak h irt e ot s f h er rae s eiae fekd ev e urmmn cnak,
m
hc
ft h
a
rpee t d a r p s rnae i t e ecs rsre bcueo t epeio sl se o rsokf ne s fee
e rsne a id hi kg n h xes eevs eas f h rv u oss f eev u d uf re
re s
d
hldb NwYr C ybns
e y e ok it ak.
b NwYr bns adpr a s a ot e lo gr ne
y e ok a k; n ehp ls h n ag
Tef ue t wic ecs rsre dc ndo Nvm
h igrs o h h xes eevs eli e n oe ­
br5poe t b t elo etfo a ysae e t dt in
e r vd o e h ws r n t t mn ae
Nvme, bt int ecs o t eNwYr Cybns
oe br oh h ae f h e ok it ak
adohr mme bns I t e t rewes bt en
n t e e br ak. n h he ek ewe
Nvme 5a dNvme 2, ecs rsre i Nw
oe br n oe br 6 xes eevs n e
Yr Cy rs b $ 1 ,0 0 0 t rah a f ue o
ok it oe y 3 5 0 ,0 0 o ec ig r f
$ ,0 0 0 ,0 0 a cmae wh$ ,3 0 0 ,0 0 i m­ 6
1 9 ,0 0 0 , s o prd it 1 0 ,0 0 0 me
d t lybf r t ei ces i rsrerqi e e t pr
iae eoe h nrae n eev e urmn e­
cnae wn i t ef c. Te rs i rsre dr g 5
e t gs e t no fet h i e n eevs uin
t i t rewe pr do Nvme i t b ep ind
hs he ek eio f oe br s o e x la e
b gi so f nst r uht opinipl t pso t a s
y an f u d ho g w r c a y e f r n­
ato s F s, t ee ws a i f wo f ns t Nw
ci n. irt hr a n nlo f u d o e
Yr f o ohrprs o t ecut yt r uhcme­
ok r m t e at f h o nr ho g o m
r
c l adf a ca t a s cio s a fr q e t oc r dr 3
ia n inni l r nat n, s e unly cus u­
in t e m d pr o t e mnh Scn, Tes r
g h idle at f h o t . eod rauy
ds usmns o f ns inNwYr f o it dps s 2
i bre e t f u d e ok r m s e oit
a t eRsreBn, dr gapr dwe n nwsu
t h eev a k uin eio hn o e is e
o Gvr mnsc r ie ( t e t a Tes r b ) ws
f oen e t euit s ohr hn rauy ills a
s ldecee rcipso f nsint eTes r acut 1
o , xedd ee t f u d h r auy con.
T sm et n Tes r cs rcips f o t e Nw
o o e xe t r auy ah ee t r m h e
Yr mr e wr lime b t efat t a lag prs O
ok akt ee it d y h c ht r e at
o t ewe lyis e o nw rauyb wr aqi e
f h ek sus f e Tes r ills ee c urd
b bdes ohr t a t e NwYr Cy bns ad
y i dr t e hn h e ok it ak n
M on ey

M a r k e t in N o v e m b e r




B LLIONS
l
O D LLAR
F O
S

7

4

Excess Reserves Held by Member Banks

MONTHLY REVIEW, DECEMBER 1, 1941

90

popc fo i cesd Tes r bro i g rs lt g a ot e t e a a d io t hld g o bnso tid
r s et r nrae rauy or w s eu in lms nirly n dit n o o ins f ak us e
n
fr mfut e e lagmn o t eNt nl df nepo NwYr , adoc re a at e we t e vlu e
o rhr n r e e t f h aio a ee s r ­ e ok n curd t im hn h o m
ga . Te haie t k g o Tes r b b p r o b o tt nin ws epnin b $ 5 ,0 0 0 .
r m h ev r ains f r auy ills y u­ f ills usa d g a x a d g y 2 0 0 ,0 0
c aes ohr t a NwYr Cy bns apa t Rprin bn hld g o mn ipl, cr oae ad
hsr t e hn e ok it ak per o e ot g ak o ins f uic a opr t , n
inict t a t e Tes r b mr e mysre a a ohr sc r i s dc e $ 8 0 ,0 0 dr g t e f u
d ae ht h rauy ill akt a ev s t e euite elind 7 ,0 0 0 uin h o r
m hns t af r f id yt t es plyo fu d, a wes udr rve , rf cin piniplly mn ipl
e ai mo fod lu it o h up f ns s ek ne ei w elet g r c a uic a
c
bt eniniv ul bns ada bt envr u prs s c r ymt r ie.
ewe d id a ak n s ewe aio s at euit auit s
o mri l a xa so uin h u ek
o t e c ut y I t e ps, t e sokec ag c ll Cmeca lon epni n dr g t e fo r wes
f h o nr . n h at h t c xhne a
lon ad bnes acpac mr es wr t e pin e ddNvme 1, a o nin t $ 6 0 ,0 0 wsles
a n akr cet ne akt ee h r ­ ne oe br 9 mut g o 7 ,0 0 0 , a s
c a mr est r uhwi ha jut e t int es ply t a hlf t a i t epee in fo rwes Bn hld
ipl akt ho g hc d smns h up hn a ht n h rcd g u ek. a k o ­
o fu d, a bt eniniv ul int uio s ada b­ i g o oe mr e ppr i cesds hly fut e,
f ns s ewe d id a sit t n n s e ns f pn akt a e nrae lig t rhr
t enNw okadt ers o t ec ut ywr acm wi s a rdci n ins c r ylon adra et t
we e Yr n h et f h o nr , ee co ­ hle mll e uto s euit as n el sae
t e” a s
p hd Tepee tvlu eo bsns int eemr es lon ecee ars o $ 0 0 ,0 0in“ohr lon.
lis e . h rsn o m f ui es hs akt as xedd i e f 1 ,0 0 0
d se e ad e ois f h ek e ot g
i s s a a t mk t e i aeut fo t epr oe Ajut d dmn dpst o t e we ly r prin
s o mll s o ae hmndqae r h ups.
I a d io t t ers inTes r b rt si Nvm bns dc ndsm ht f rhr f o t e Ot br 1
n dit n o h i e rauy ill ae n oe ­ ak eli e o e a ut e r m h coe 5
w
br t eewsa oaf rhrmdrt rs iny ld o pa d r g t e t o wes e dd Nvme 5 ad
e, hr a ls ut e oeae i e ie s n ek uin h w ek ne oe br , n
Tes r nt s adohrsc rte o cmaalem­ ds it as beun ut r rmi e o Nvme 1
rauy oe, n t e euii s f o prb a ep e usqe t pun e and n oe br 9
t r y btn i ces oc re ins c s ott r rt s aot $ 5 ,0 0 0 blo t e Ot br 1 t t l. Ma ­
uit , u o nrae curd uh hr emae bu 4 0 0 ,0 0 e w h coe 5 oa en
a t oeo bnesacpacs oe mr e cmeca wi , Uit dSae Gvr mn dps sint erpr­
s hs n akr ce t ne, pn akt o mri l hle n e t t s oen e t e oit h e ot
ppr ad oe-t e o ne bn lon t c so es in bnsrs $ 3 ,0 0 0 , rf cin ce it et bs e
a e, n vr h-cut r ak as o ut mr, g ak oe 1 0 0 ,0 0 elet g rd s sali hd
wi hhv be wll aoe t e y ld o s ot t r o t eboso t eebnst t eacut o t eTes
hc ae en e bv h ie s n hr em n h ok f hs ak o h con f h r a­
Gvr mn sc r i s I s m ay it apas t a uy i py e t fo prhss o Tes r b , t x
oen e t euite. n u mr , per ht r , n amn r uc ae f r auy ills a
t t e et n t a t e Nvme i ces in rsre a t ipt n nt s a d s vns bns Dps s i
o h xe t ht h oe br nrae eev nic aio oe, n ai g od. e oit n
rqi e e tpre t gshsbe a i f e c o mny rprin NwYr C y bns o o t f o n cre
e urmn ecnae a en nnlune n oe e ot g e ok it ak f u-o-t w or­
r t s t isinlunehsbe mnet dlaglyi y ld s o dn bns adsm loa bns a e dc in
ae, h f e c a en a if se r e n ie s pne t ak n o e cl ak, ft r elin g
o s ot t r Gvr mn sc r i s wi h oe t e $ 1 ,0 0 0 bt enOt br 1 adNvme 5 (h
n hr em oen e t euite, hc vr h 3 1 0 ,0 0 ewe coe 5 n oe br t e
r e su f r auy od
ps f wyas hddc ndt d po ot nt ly lo pr ddr g wi halag i s e o Tes r bns
at e er a eli e o is r prio ae w eio uin hc
lee udrt epes r o i cesn ecs rsre. ws s ld adbns wr a jut g t e psto s t
vls ne h rsue f nrai g xes eevs
a o n ak ee d sin hir oii n o
m tt eNvme 1i ces inrsrer q ir mns,
e h oe br nrae eev e u e e t )
e
s o e a f rhr nt rdcio o $ 3 0 ,0 0 b
hwd ut e e e ut n f 5 ,0 0 0 y
Nvme 2.
oe br 6
Money Rates in New York

Nov. 30, 1940 Oct. 31, 1941 Nov. 29, 1941

Stock Exchange call loans.......................
Stock Exchange 90 day loans.................
Prime commercial paper— 4 to 6 months
Bills— 90 day unindorsed.........................
Yield on M per cent Treasury note due
March 15, 1945 (tax exempt).............
Average yield on taxable Treasury notes
(3-5 years)..............................................
Average yield on tax exempt Treasury
bonds (not callable within 12 years).
Average yield on taxable 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
buying rate for 90 day indorsed bills. .

1
*114
y2- 5
A
7
A

1
*1 H
y2
A
7

1
*1 H
y2
A
7

0.45

0.60

0.84

0.48

0 .94

0.004

1.88

1.92

2.21

2.04

2.24

0.067

0.267
1

1

1

y2

y2

y2

* Nominal.

M ember B a n k C redit

Fllo in a i ces o $ 0 ,0 0 0 int epee i g
o w g nnrae f 5 0 0 ,0 0 h rcdn
fo r wes t t l lon adi vsmns o t e we ly
u ek, oa a s n net e t f h ek
rprin bnsin11cte i cesdo ly$ 8 0 ,0 0
e ot g ak 0 ii s nrae n 3 ,0 0 0
dr gt ef u wese ddNvme 1, apro in
uin h o r ek ne oe br 9 ei d
wi hn lag “nw o e ” s c r yi s ewsf ae
hc o r e e mny euit su a lot d
b t e Tes r . Age aehld g o Uit dSae
y h r auy gr gt o ins f n e t t s
Gvr mn sc r i s i cesd$ 3 0 ,0 0 a t ent
oen e t euite nrae 4 ,0 0 0 , s h e
r s lt o ars o $ 1 0 ,0 0inTes r b hld g,
eu f i e f 8 ,0 0 0 r auy ill o ins
a i ces o $ 2 0 ,0 0 inTes r bn hld g,
n nrae f 5 ,0 0 0
rauy o d o ins
ars o $ 2 ,0 0 0 inTes r nt hld g, ada
i e f 3 6 0 ,0 0 r auy oe o ins n
dc n o $ 1 ,0 0 0 inhld g o Gvr mn g a­
eli e f 4 6 0 ,0 0 o ins f oen e t ur
at e oligt n—h lat t o c ags rf cin t e
ned b aio s t e s w hne elet g h
rfnnin o Rcntut nF a c Cr oaio ad
ei a c g f eo sr cio inne opr t n n
Cm oit Ce it Cr oai n Nvme mt r ie
o md y rd opr to oe br auit s
i t d et Gvr mn sc r i s Whrs et t t e
no irc oen e t euite. it epc o h
i ces in Tes r b hld g, t is rpee t d
nrae
r auy ill o ins h e rsne




G overnment S ecurities

Oes ao in ohrdvlomnsint eGvr mn
vrhdw g t e ee p e t h oen e t
s c r ymr e dr gNvme ws a et ni no
euit akt uin oe br a n xe so f
t ers iny ld o Tes r nt sadint eaeae
h ie ie s n rauy oe n h vrg
rt s a wi hnwis e o Tes r b wr s ld
ae t hc e sus f r auy ills ee o .
I a d io t f cos peio s e u eae in t i
n dit n o at r rv uly nmrt d hs
Rve , y ld o nt s wr af ce b ucra t s
ei w ie s n oe ee fet d y net inie
a t wehruqa ie cneso o ec ag piv
s o ht e nulif d ovri n r xhne r i­
lee wu cni u t b acr e t hldr o mt r
gs o ld otne o e codd o o es f au­
in Tes r oligt n.
g rauy b aio s
Te acma yn c at inict s t e et n o t e
h co pni g hr d ae h xe t f h
avne i t ee y ld in rcn wes aa s t e
dac n hs ie s ee t ek, gint h
bc go n o f cut n er e t isya. O Nvm
akr ud f lut aio s ali r h e r n oe ­
br1 t ey ldo t et xee p %prcn Tes r
e 9 h ie n h a xmt e e t rauy
nt deMrh1, 14, at rhv grsn0 9int e
oe u ac 5 95 fe ain i e .2 h
pee in t omnh, ws0 4prcn, cmae wh
rcd g w o t s a .6 e e t o prd i
t
t eya ’shg o 0 0prcn rahdo Fbur 1.
h er i h f .7 e e t ec e n e r ay 5
I t esm t omnhpro t ey ldo t et xb
n h a e w ot ei d h ie n h aale
% prcn Tes r nt mt r gDcme 1, 14
e e t rauy oe auin ee br 5 95
a ors f o 0 2t 0 3prcn. Lt rint emnh
ls oe r m .6 o .8 e e t ae h o t ,
Tes r nt y ld sede a t eh hrlee . Fl­
rauy oe ie s t ai d t h ig e vls o
lo in avne inb r t sint epeio ss wes
w g dacs ill ae h rv u ix ek,
t e aeae r t a wi ht e nwi s e o Tes r
h vrg ae t hc h e su f r auy
b dt dNvme 2 ws a add 0 6 pr cn,
ills ae oe br 6 a wr e , .2 7 e e t
wst ehg et inmr t a fo ryas
a h i hs oe hn u er.
Ma wi , t ey ldo t et xee p 2 prcn
en hle h ie n h a xmt % e e t
Tes r bn o 1 6 -6 , rpee t t eo t ebhvo
rauy o d f 9 0 5 e rsnaiv f h e ai r
o y ld o lo g t r Tes r bns gnr lly a ­
f ie s n n em r auy od e ea , d
vne o ly s hly dr g Nvme, f llo in a
a cd n lig t uin oe br o w g
dc n t arcr lo lee inOt br S ilaly o ly
eli e o eod w vl coe. im r , n

91

FEDERAL RESERVE BANK OF NEW YORK
PCR CENT

2 .3 0

20
.2
20
.0
10
.0
2.4 0

1.90
.9 0
.8 0
.7 0
.6 0
.5 0
.4 0
.3 0

.2
0
.1
0
0
1941
Y ield s on U nited S ta tes G overn m ent Securities (O n W ed n esd a y
dates— la te st figures are for N ovem ber 2 6 ; for T reasu ry bills,
only positive yields show n)

f rhrt apin aotoeprcn aoet e14 lo .
ut e o o t bu n e e t bv h 90 w
Txs llin wsrpre t hv be pea n dr g
a e g a e ot d o ae en rvle t uin
t e wo mnh a d t hv af ce pb uilit
h hle ot n o ae fet d ulic t y
s ae pric laly Teaeaepic o pb uilit
hrs at u r . h vrg r e f ulic t y
sok o t e2t ws a t elo et pin rcr e b
t cs n h 8h a t h ws o t eodd y
Sa dr ’sine wi hge bc t 12. Tevlu e
t n ad dx hc os ak o 96 h o m
o t a in o t e NwYr Sok Ec a g dr g
f r d g n h e ok t c xhne uin
Nvme wst ehai s sneJ ly o Nvme 1
oe br a h evet i c u ; n oe br 2
oe a m n s ae wr t a e , t e lags dily
vr illio hrs ee r dd h r et a
vlu esneSpe br2.
o m i c e t me 5
Dmsi cr oaebnss o e litlent c ag in
o etc oprt od hwd t e hne
pic fo t emnha awo , rmi in a, o coe
r e r h ot s hle e an g t r l s
t , rcr h h lee . Md mgae bns o t is
o eod ig vls e iu r d od f h
t p, c sii d a Ba b Mo y I vsos Sr ic,
y e lasfe s a y o d’s net r ev e
mvdu mr t a hlf apin t anw ig fo 14
oe p oe hn a o t o e h h r 91
bt enNvme 1ad6 bt hdlott reqat r
ewe oe br n , u a s he ures
o apin b Nvme 1. O e pic mvmns in
f o t y oe br 2 t r r e oe e t
h
t e cr oae f ld wr gnr lly m o. Mn ipl
h opr t ie ee e ea inr uic a
bn qoai n a omina e rcr h hlee .
od ut to s ls a t ind eod ig vls

s a i cess in aeae y ld o ohr lo g t r
mll nrae
vrg ie s n t e n em
Tes r bns ( oh t x ee p ad t xb ) wr Tisbn ’ss ao a a jut dine o t entpoit
r auy od bt a xmt n aa le ee h a k es nlly d se dx f h e r f s
rcr e i Nvme, a pi e o t eei s e s o e o 17cmeca adinut ia cmai srs a poi­
eodd n oe br s rcs f hs sus hwd f 6 o mri l n d sr l o pne oe pr x
o lyf at nl nt dc ns fo t emnh
n r cio a e eli e r h o t .
mt ly 1 pr cn bt en t e scn a d t ir
ae 0 e e t ewe h eod n h d
Tef s t oo t ewe lyi s e o Tes r b qat r o 14, pimr a a rs lt o a mr
h irt w f h ek sus f rauy ills ures f 91 r aily s eu f
oe
d r gNvme wr int e a on o $ 5 ,0 0 0 f vr b s o i gb t e a t mtv inut y t a i
uin oe br ee h mut f 1 0 0 ,0 0 aoa le hw y h uo oi e dsr hn s
n
adec rp cda$ 0 ,0 0 0 mt r y O Nvm uul dr gt et ir q at r
n ah e lae 1 0 0 ,0 0 auit . n oe ­ s a uin h h d ure.
br 1 t e Sceay o t e Tes r anucdt a Teacma yn d ga , wi hs o st erlaiv
e 3 h ert r f h rauy none ht h co pni g iar m hc hw h e t e
t e we ly Tes r b of r g wu b r i e t f cuto s o inut ia po ut n ad cr oaio
h ek rauy ill fein o ld e asd o lut ai n f d sr l r dcio n opr t n
$ 0 ,0 0 0 , adt a py e t cu b md et e i pois f o 12 t dt , i d ae t a cr oaio
2 0 0 ,0 0 n ht amn o ld e ae ihr n r ft r m 98 o ae nict s ht opr t n
cs o b bo ce it Ac r inly t elatt owe ly poit s o e n get c ag dr g t e f s nn
ah r y ok rd . cod g , h s w ek r f s hwd o ra hne uin h irt i e
i s e o b i Nvme wr in t e a on o mnh o 14, wi inut ia po ut n udrt e
sus f ills n oe br ee h mut f ot s f 91 hle d sr l r dcio , ne h
$ 0 ,0 0 0 . A ec rp cd a mt r y o simlu o t e df ne ef r, ws r in r p ly t
2 0 0 ,0 0 s ah e lae
auit f t u s f h ee s fot a is g a id o
$ 0 ,0 0 0 , t e Tes r ot ind $ 0 ,0 0 0 o rcr h hlee . Od aily a t ed ga i d ae,
1 0 0 ,0 0 h r auy ba e 1 0 0 ,0 0 f eod ig vls r inr , s h iar mnict s
“nw o e ’’ dr gec we.
e mny uin ah ek
f cut n inpo ut naerf ce t alag et n
lut aio s r dcio r elet d o r e xe t
e r f s it r f s
TeSceayo t eTes r hsa nucdt a a i crepnin c ags in nt poit, wh poit
h ert r f h r auy a none ht n ors o d g hne
lag sa “c s ” of r g o Tes r oli aio s r in o fa ga af se r t t a po ut n Dr g
r e cle ah fein f rauy bgt n is g r llin t at r ae hn r dcio . uin
(ino in aotab na dahlf dllas isp ne t e ps nn mnh, hwvr i cess int xs t vlv g bu illio n a o r) la nd h at i e o t s o ee, nrae ae, o
dr gt ef s we inDcme, adt a t ea on
uin h irt ek ee br n ht h mut
o we lyTes r b i s e, bg n gwht eis e
f ek r auy ill sus einin it h su
t b dt dDcme 1, w b rdcdt $ 5 ,0 0 0 .
o e ae ee br 0 ill e e ue o 1 0 0 ,0 0
Te Sceaya osae t a t e$ 2 ,0 0 0 o 1
h ert r ls t t d ht h 4 6 0 ,0 0 f %
pr cn Tes r nt s de Mrh1, 14, adt e
e e t rauy oe u ac 5 92 n h
$ 1 ,0 0 0 o %prcn Rcntut nF a c Cr
3 0 0 ,0 0 f e e t eo sr cio inne o­
pr t nnt sdeJnay1, 14, wu b rf ne
oaio oe u a ur 5 92 o ld e eudd
inJ n ay adt a t oi s e o Fdr l Fr Mr­
a ur ; n ht w sus f e ea am ot
gg Cr oai n bns ($ 3 ,0 0 0 o 3 pr cn
ae opr to od 2 6 0 ,0 0 f e e t
bns o 1 4 -4 , c llale Jnay 1, 14, ad
od f 9 2 7 a b a ur 5 92 n
$ 0 ,0 0 0 o 2 prcn bns o 1 4 -4 , cllale
1 3 0 ,0 0 f % e e t od f 9 2 7 a b
Mrh1 1 4 ) mh a ob r f ne a t a tm.
ac , 9 2 ig t ls e eudd t ht i e
B u s in e s s P r o fits

P R O D U C T IO N
IN D E X

P R O F IT S
IN D E X

S e c u r ity M a r k e ts

Te ire u r dwwr mvmn o sok pics
h r g la o n ad oe e t f t c r e
wi hbgn Spe br 1 cni ud ino Nvme.
hc ea e t me 7 o tne t oe br
Fllo in i dt r int f cut n er e in t e
o w g neem ae lut aio s ali r
h
mnh Sa dr ’s 9 sokine o Nvme 1-1
ot , t n ad 0 t c dx n oe br 2 3
boes ap t anw w r14, udrt ei f e c
rk hr ly o e lo fo 91 ne h nlune
o nw o lao ds ue a dd c si n o a d io a
f e s f br i pt s n isusos f dit nl
t xleis t n A e a inevn gpro o s hly
a g laio . ft r n t r e in ei d f lig t
h hrqoaio s t isine laeinNvme dc nd
ig e ut t n, h dx t
oe br eli e




Indexes of Industrial Production and B u sin ess P rofits, Q uarterly
D ata A d ju ste d for Seasonal V ariation (In du strial production
index of B oard o f G overnors of the Federal R eserve S y ste m
and Federal R eserve B an k o f N ew Y o r k index o f
profits o f 1 67 com m ercial and industrial com p anies;
1 9 3 5 -3 9 a v e r a g e s 1 0 0 per cen t)

92

MONTHLY REVIEW, DECEMBER 1, 1941

gt e whh hrwg admt r lcss hv rahd $ 6 ,0 0 0 a aa s $ 1 0 ,0 0 aya bf r, ad
ehr it ig e ae n aeia ot, ae ec e 3 0 0 ,0 0 s gint 6 ,0 0 0 er eoe n
s c po ot n a t of e, inlag maue t eef c wst elags sne13. Nt i cm o ohrpb
nh r prio s s o fst r e es r, h fet a h r et i c 90 e no e f t e ulic
o poit o t e inrae vlu e o s le t gt e uilit s ( xluin t le hn cma ie) s o e ayan r f s f h cesd o m f a s oehr t ie ec d g e poe o pn s hwd e r
whas cae rdcio sincsspru it A c re t t -ya dc n o 6prcn ad1prcn, r s et e ,
it soi t d e ut n ot e n . t urn o er eli e f e e t n e e t epcivly
lee poit o t eecr oaio sae2 prcn blo dr gt et ir qat radt en emnhpr d.
vls r f s f hs opr t n r 0 e e t e w uin h h d ure n h in o t eio s
t e 12 pa, a huht e vlu e o po ut ni
h 99 ek lt o g h o m f r dcio s
aot4 prcn get r
bu 0 e e t rae.
A c milaio o t e ageae s le, epne ad
o p t n f h grgt a s xe s, n
poitadlosdt pb hdb 6 cmai sini ae
r f n s aa ulis e y 0 o pne dct s
t a fo t e f s n e mnh o 14 gos s le o
ht r h irt in o t s f 91 rs a s f
t i go prs a poimt ly $ ,5 0 0 ,0 0 o sm
hs r u oe pr x ae 1 7 ,0 0 0 , r o e
4 prcn aoet oeint ecrepni gpr do
5 e e t bv hs h ors o dn eio f
14. Poit, bf r Fdr l t xaculs rs 9 pr
90 r f s eoe e ea a cr a , oe 6 e
cn, wilepoit, a e Fdr l t xs wr 2 prcn
e t h r f s ft r e ea ae, ee 1 e e t
lagrt a int ef s nn mnh o 1 4 ; t eage
r e hn h irt i e ot s f 9 0 h gr­
gt a on st ai e fo Fdr l t xs ws a poi­
ae mut e sd r e ea ae a pr x
mt lyfo rt e t ea o n int ecmaalepr d
ae u ims h mut h o prb eio
o 14.
f 90
Teacma y gt b s o st a rpre ntpois
h co pnin ale hw ht e ot d e rft
o abodrlis o 41cmeca adinut ia cm
f r ae t f 0 o mri l n d sr l o ­
pne d r gt et ir qat rwr 4 prcn lagr
a i s uin h h d ure ee 1 e e t r e
t a aya er r Tisr t e lag ginisat ib t b
hn e r alie. h ahr r e a tr uale
in pr t t e fat t a lat y a’s rpre t ir
at o h c ht s e r e ot d h d
q at r er ins gnr lly wr rsr t d b ddc
ure an g e ea ee et ice y e u­
t n fo rt ociv t x c ags ( ne t e Scn
io s r er at e a hre udr h eod
RvneAt o 1 4 ) a p alet t ef s s mnh
ee u c f 9 0 plicb o h irt ix ot s
o t a ya, wees d r g t e 14 t ir qat r
f ht e r hra uin h 91 h d ure
s c rt ociv c agswr lescmo bcuecr
uh er at e hre ee s o mn eas o­
pr t n hdt alag et n a t ipt dt ei cess
oaio s a o r e xe t nic ae h nrae
int xr t spoiddfo int eRvneAt o 14.
a ae r v e r h ee u c f 91
O e imot n f cos wr t e h h t ir qat r
t r pra t at r ee h ig h d ure
h
a t mble er ins r f re t peio s adas b
uo oi an g eer d o rv uly n u­
sa t l i ces insel cma ypoit. Ntpoit o
t nia nrae t e o pn r f s e r f s f
pto u cmai sa owr mc lagrt a aya
er le m o pne ls ee uh r e hn er
er ra ar s lt o ahg e pic sr cuefo pt o
alie s eu f i hr r e t ut r r er ­
le mpo ut a dacnine lag dmn.
u r dcs n o t ud r e e ad
Fr t ef s n e mnh o t eya nt poit o
o h irt in ot s f h e r e r f s f
t is sm go p o 41 cmai s wr 2 pr cn
h a e r u f 0 o pne ee 6 e e t
aoet elee fo t ecrepni gpr do 14. A
bv h vl r h ors o dn eio f 90 ll
go p, wht eecpio o bkr po ut, gldad
r us it h xe t n f aey r dcs o n
s e m in, a dc a cmai s hdlagr poit
ilvr in g n igr o pne, a r e r f s
t a in14. Telags pre t g gi s oc re i
hn 90 h r et ecnae an curd n
t e mt n p t r, ca m in, lu br ad roi g
h oio icue ol in g me n ofn
po ut, hr wr, a dcpe adbas f bic t g
r dcs ad ae n opr n r s a r ain
go p. I gnr l, gin innt poit oe 14 wr
r us n e ea a s e r f s vr 90 ee
w g hely o hr eli e h o m f
t e get s in cmai s po uin dr b go s O in c i f t as ap dc n int e vlu e o
h raet o pne r dc g uale od;
15 s c cmai s inlue int e t b s o e a r f nin oeai n, cr oaeadmn ipl s c r y
8 uh o pne c dd h ale hwd n eu d g pr to s opr t n uic a euit
ageaeginoe 14 o 3 pr cn, wi poit f t t n d r g Nvme ageae $ 9 ,0 0 0 ,
grgt a vr 90 f 2 e e t hle r f s loaio s uin oe br grgt d 1 5 0 ,0 0
o 3 m in cmai s rs 1 pr cn, a d 13 o ly s hly aoe t e lo et mnh t t l in t o
f 3 in g o pne oe 7 e e t n 8 n lig t bv h ws o t ly oa w
cmai s in t e nnuale gos a d sri e li e yas Cr oae f a c g a one t $ 2 ,0 0 0 ,
o pne h o dr b od n evc ns er. opr t innin mut d o 1 1 0 ,0 0
s o e a i ces o 2 pr cn. Poit i dr b o wi h$ 0 ,0 0 0 , o mr t a 8 prcn, rpe
hwd n nrae f 0 e e t r f s n uale f hc 1 2 0 ,0 0 r oe hn 0 e e t e r­
gos inut ie gnr llyf cut mc mr w e sne f ns t b ue fo nwc p a pr oe, a
od dsr s e ea lut ae uh oe idly e t d u d o e sd r e a it l upss n
uuullyh hpo ot n
ns a ig r prio .
t a poit innnualegosinut ie.
hn r f s o dr b od dsr s
O i gt t elag vlu eo fr ig t tafcadas Ms o t elagr i s e of rdwr qic lyt kn
w o h r e o m f e h rfi n lo
n
ot f h r e sus fee ee u k ae
t gnr l ee pio fr mpy e t o ecs poit u b inet r. Tis ws epc llyt u o t ef t ­
o e ea xmt n o amn f xes r f s p y vsos h a s eia r e f h loa
t xs bcue er ins ae sill r laivly lo o t e t n o $ 5 0 ,0 0Pc i Gs adE cr Cma y
ae eas an g r t e t e w n h io s f 2 ,0 0 0 aifc a n let ic o pn
lag a ons o inet dc p a nt i cm, a e a bnsad$ 0 0 ,0 0WsinhueE cr adMn­
r e mut f vse a it l, e no e ft r ll od n 2 ,0 0 0 et g o s let ic n a u
c ags o C s I r ilr a s ageae $ 8 ,0 0 0 fat r g Cma y dbnue, bt o wi h rpe
hre, f las a od grgt d 1 8 0 ,0 0 cuin o pn ee t rs oh f hc e r­
d r g t e Spe br q at r a cmae wh sne nwc p a Tmoayf a c g nt i c dd
uin h e t me ure, s o prd it e t d e a it l. e pr r innin, o nlue
$ 0 0 ,0 0 d r g t e crepnin pro o 14. i t e $ 9 ,0 0 0 t t l, acut dfo a a d io a
7 ,0 0 0 uin h ors o d g ei d f 90 n h 1 5 0 ,0 0 oa cone r n dit nl
Fr t e fu n e mnh, nt i cm ws aot s $ 4 ,0 0 0 a dinlue $ 0 ,0 0 0 Sae o Nw
o h ll in o t s e no e a bu ix 1 6 0 ,0 0 n c dd 1 0 0 ,0 0 t t f e
tms t a o 1 4 , a o ni g t a poimt ly Yr 0 0 pr cn t x a t ipt n nt s mt r g
i e ht f 9 0 mutn o pr x ae ok .3 e e t a nic aio oe auin




(Net profits in millions of dollars)

Corporation group

Advertising, printing and pub­
lishing..........................................
Aircraft manufacturing...............
Automobiles...................................
Automobile accessories (excl.
tires)............................................
Building materials:
Hardware....................................
Heating and plumbing............
Lumber and roofing.................
Other...........................................
Chemicals.......................................
Copper and brass fabricators. . . .
Drugs, cosmetics, and soaps.. . .
Electrical equipment...................
F oods:
Bakery products.......................
Beverages...................................
Confectionery............................
Flour milling and cereal prod­
ucts..........................................
Other...........................................
Industrial machinery and acces­
sories ............................................
Mining:
Coal.............................................
Copper........................................
Gold and silver...........................
Other............................................
Motion pictures.............................
Office equipment...........................
Paper and paper products............
Petroleum.......................................
Railroad equipment.....................
Steel and iron................................
Stores...............................................
T extiles............................................
Tobacco (cigars)...........................
Miscellaneous................................

Third quarter
No.
of
cos. 1937 1940 1941

First nine months

1937

1940

1941

2 .4
11.3
15.1

2 .6
15.6
58.7

9 .5
5 .8
199.9

8 .2
23.3
160.5

8 .3
32.2
207.0

11.0

6.9

12.9

46.4

34.1

44.2

4
0.9
5.2
7
2.9
6
11
9 .5
26 37.8
4
1.8
11 13.1
12 17.2

0 .9
5.0
2.9
7 .5
33.9
1.8
13.2
14.0

1.4
4 .6
4 .1
6.7
39.5
2.9
17.4
16.5

3 .8
12.5
8.0
28.5
119.8
8.4
44.4
53.8

2.4
8.2
6 .0
22.4
112.7
5.6
44.5
47.8

4 .2
11.2
10.5
22.8
119.8
9 .6
53.4
54.2

6
1.5
5 2.2
13 53.8

32

8
5
7

6 .3
3 .0
5.0

4 .7
2 .5
4 .8

4 .2
5.9
5 .3

15.5
10.5
14.1

13.6
8 .2
14.8

12.7
12.3
16.5

6
8

4 .2
7.1

5.1
7 .5

7.2
11.6

15.9
25.1

19.0
25.3

22.5
31.8

14.2

7 .9

13.2

4 2.5

25.8

37.2

— 0 .4
2.1
11.7
9 .6
4 .6
6.1
16.5 10.7
4 .0
0 .8
3.1
5 .0
8 .9
6 .6
59.1 23.2
9 .8
7 .1
69.7 77.2
8 .4
9.1
2 .3
3 .5
1.3
1.1
10.9 10.9

3.8
13.5
4 .0
11.7
4 .3
7 .3
9.7
51.2
7 .2
75.6
9 .8
3 .6
1.2
17.2

0.1
40.0
19.9
4 9.5
13.4
18.6
19.5
150.4
32.0
216.7
23.0
9 .0
2 .4
21.6

4 .8
34.4
13.2
33.5
4 .8
13.1
23.9
83.7
21.2
172.2
20.7
9.7
3 .3
2 1.2

8 .5
44.5
12.3
35.1
10.3
20.5
24.1
118.8
27.0
234.4
22.1
10.8
3 .3
32.2

28

12
5
9
7
4
9
14
34
12
32
12
9
5
38

Total, 32 groups...........................

401 407.5 319.5 450.4 1,280.5 1,042.1 1,314.3

Class I railroads,
Net income................................

137 42.5

Other public utilities (excl. tele­
phone COS.),
Net income.................................

62 55.7

— ■ Deficit.

N ew

F in a n c in g

69.8 188.4

54.3

50.8

81.4

60.7

359.7

185.0

193.7

191.8

FEDERAL RESERVE BANK OF NEW YORK

in My 14, ad $ 5 0 ,0 0 Fdr l I t r e iae
a, 92 n 3 ,5 0 0 e ea nemd t
Ce itBn %ad%prcn cno ae dbnue
rd a k n e et o s lidt d ee t rs
mt r gi MyadSpe br 14 ads ldo bss
auin n a n e t me, 92 n o n ae
o 0 0ad0 5prcn, rs et e .
f .4 n .5 e e t epcivly
F o r e ig n E x c h a n g e s

93

bns a $.23 fo s eii dt a s cio s Hwvr
ak t 0 31 r pcfe r nat n. o ee,
fo ohrta s cio s s c a t ermt neo fu d,
r t e r nat n, uh s h e ita c f ns
udr li e s, t t ir cut ie t r uh t e mdu
ne cne o h d o nr s ho g h e i m
o S i s f a c, t e r t o t e lat r int is mr e
f w r ns h ae f h te h akt
s
apas t b cni ealy hg e, r in t $ .27
per o e o sdr b i hr is g o 0 35
t wr t eedo Nvme.
o ad h n f oe br

Fr ig ec ag t a in d r g Nvme gv
oe n xhne r d g uin oe br ae
fut e ei e c o t esrnt e in foe nec ag
rhr vdne f h t e ghn g r ig xhne
pst n o Lt A eic , wi h fo sm t e hs Tegldsoko t eUit dSae wsrdcdaot
oiio f ain mr a hc r o e im a
h o t c f h n e t t s a e ue bu
be rcvrn f o t e d r pio s t it f r ig $ 5 0 ,0 0 in Nvme, t e f s mnh rdcio
en eoei g r m h isut n o s oe n 1 ,0 0 0
oe br h irt o t ly e ut n
tae bo g t aot b t e ot ra o wr A im sne Jnay 13. Gld hld udr er ak fo
r d r uh bu y h ubek f a. n ­ i c a ur , 98 o e ne amr r
pra t f co int i imr vmn inLt A eic n f r ig acut a t eFdr l Rsr eBnsi cesd
ot n at r hs poe e t ain mr a oe n con t h e ea eev a k nrae
f rig t a e i anme o cssa les, hspeu ­ ao t$ 1 0 ,0 0d r gt emnht rahanw i h
oe n r d, n u br f ae t at a rs m bu 6 ,0 0 0 uin h ot o ec e hg
alybe hayb y gb t eUit dSae o sr t g o a poimt ly $ ,1 6 0 ,0 0 Ma wi , gldim
b en ev uin y h n e t t s f t aeic f pr x ae 2 1 ,0 0 0 . en hle o ­
rwmt r ls Tis t gt e wh et ni e f a ca prscnine inr laivlys a vlu e
a aeia . h , oehr it xe sv inni l ot o t ud e t e mll o m.
assac of rdb t eEpr-I pr Bn adt e I t e fo r wes e ddNvme 1, t e Dpr­
si t ne fee y h x ot mot a k n h
n h u ek ne oe br 9 h e at
Uit dSae Sa iliz t nFn, hsbe rf ce i mn o Cmec rpre t e rci t o $ 5 0 ,0 0
n e t t s t b aio u d a en elet d n e t f o m e e ot d h eep f 3 ,1 0 0
r
avne i ec ag rt s o svr l Lt A eic n o gldi t eUit dSae int ef llo in pinipl
dacs n xhne ae f eea ain mr a f o n h n e t t s h o w g r c a
cuti s
onre.
a o ns $ 2 0 ,0 0 f o Cnd, $ ,0 0 0 f o
mu t : 1 ,8 0 0 r m a aa 6 0 ,0 0 r m
Tems po o ne rs dr gt eps mnho­ Asr lia $ ,6 0 0 f o Rsia $ ,7 0 0 f o t e
h ot r nucd i e uin h at ot c ut a , 5 0 ,0 0 r m us , 2 0 ,0 0 r m h
c re int eUuuynps , wic apas t hv Pilipins $ ,2 0 0 f o Mx o ad $ ,1 0 0
urd h r g aa eo h h per o ae h p e, 2 0 ,0 0 r m eic, n 2 0 ,0 0
cni udincni ealedmn int enno to d f o Clo ba
o tne osdrb e ad h o cnr lle r m o mi .
mr e. Et nin t e i poe e t wi hbgnlae
akt xe d g h mr vmn hc ea t
inSpe br t enno to dr t fo t i ec ag
e t me, h o cnr lle ae r hs xhne
avne ga ully u t na t e e d o Nvme,
dacd r d a nil er h n f oe br
cod g o h . . o g opr t n e ot
we it rs a r ply t $ .5 1 . Tis lee wi h Ac r in t t e F W Dde Cr oaio rpr
hn oe but o 0 2 0 h vl, hc
rpee t a apeiaio o 1 pr cn fo t eps cvr g3 EsenSae, cnt uto cnrcs dr
e rsns n prc t n f 8 e e t r h at oein 7 at r t t s o sr ci n otat u­
t omnh, wst eh hs sneJn ay 13. Te in Ot brwr a adda adilyr t 1 pr cn
w ot s a h ig et i c a ur , 98 h g coe ee wr e t a ae 4 e e t
f e r t fo t e Agnin ps a o s o e fut e blo Spe br bt a ot 5 pr cn h hr t a
re ae r h r e t e eo ls hwd rhr e w e t me, u lms 0 e e t ig e hn
w
rcvr f o t et moayAg s-Spe brrato i Ot bro latya a ds m htaoet eaeae
eoey r mh e pr r uut e t me eci n n coe f s er n o e a bv h vrg
adb aot t em d o Nvme hdrt r e t r t fo t ef s n emnh o 14. Pivt cntu­
n y bu h idle f oe br a eund o ae r h irt in ot s f 91 r ae o sr c
t eh hlee o aot$ .2 9 , f s rahdo Ag s 7 t na ad s o e litle c ag f o et e t e pe
h ig vl f bu 0 3 0 irt ec e n uut . io wr s hwd t hne r m ihr h r ­
Tislee wsmina e dr gt ermi dro t e cdn mnho t esm mnhaya ao A ad
h vl a a t ind uin h e ane f h e i g ot r h a e o t er g. wr s
mnh Te r f nin oeai n rcnly udrae fo pb cnt ut n o t e ohr hn, dc nd
ot . h eud g pr to s ee t net kn r ulic o sr cio , n h t e a d eli e
lms n h r m e t me, u ee bu w
c
b t e Agnin Gvr mn, wic w rs lt in a a ot oefift f o Spe br b t wr aot t i e
y h r e t e oen e t h h ill eu
cni eale s v ginineet c ags o t einenl a get a inOt br 1 4 . O t e t t l vlu e o
osdrb ain
t rs hre n h t r a s ra s coe, 9 0 f h oa o m f
coe, pr x ae n a
db, udut d cnr ue t t is fr ns int e cnr cs a addinOt br a poimt ly oe hlf
et no be ly o t ibt d o h i mes h o tat wr e
Agnin ec ag r t . Ahuh t e f e rt fo wr Gvr mn cnr csfo df nepr oe.
r e t e xhne ae lt o g h re ae r ee oen e t o tat r ee s upss
t eVnz e nblivr cnine t dc n dr gt e I Nw okSaeadNrhr Nw esyt edily
h e eula o a o t ud o eli e uin h n e Yr t t n ot en e Jre, h a
er dy o Nvme t alo o $ .2 3 , smdmn r t o cntuto cnr c a ad rs s ap dr g
aly as f oe br o w f 0 5 0 o e e ad ae f o sr ci n o t at wr s oe hr ly uin
apast hv dvloe a t ispin adb t eed Ot br adws 4 pr cn aoet e crepnin
per o ae ee pd t h o t n y h n coe, n a 0 e e t bv h ors o d g
o t emnht eblivr hdrcvrdt $ .2 8 ; a mnho 14. Pimr rs o sb fo t i i ces
f h ot h o a a eoee o 0 5 0 t ot f 90 r aily epni le r hs nrae
t i lee hwvr t er t sill rmi e cni ealy wr lag a ad fo mnf cuin b ild g ad
hs vl, o ee, h ae t e and o sdr b ee r e wr s r a uat r g u in n
blo t eer Ot brqoaio o $ .2 0 .
e wh aly coe ut t n f 0 7 0
e g er gpo cs Cnr csfo rs e t l b ild g
ninein r jet . o t at r eidnia u in
TeMx a ps, wi hw peu alyb f rhr wr s m ht blo t e lee o Spe br o t i
h eicn eo hc ill rs mb e ut e ee o e a e w h vls f e t me f hs
w
srnt e e b t e eoo i adsailiz t n are ya ado Ot br aya er r Gvr mn cn
te ghnd y h cnm n t b aio ge­ er n f coe e r alie. oen e t o­
c
mns rcnly e t rdinob t e Uit d Sae ad t at fo df necnt ut nacut dfo alitleoe
e t ee t nee t y h n e t t s n r cs r ee s o sr cio cone r t vr
Mxc, cni udt hlda $ .2 5 -$ .2 7 , t elee oeqat ro t emnh t t l. .
ei o o tne o o t 0 0 0 0 0 0 h vl n ure f h o t ’s oa
wi hhs be mina e whu iner pio sne Te Oi e o Po ut n Mngmn hs rcnly
hc a en a t ind it o t t rut n i c
h f c f r dcio a ae e t a ee t
f
t em d o lat My Fllo in t e s n g o t e pbs e f ue o t esz o t edf necntut n
h idle f s a. o w g h ig in f h uli hd igrs n h i e f h ee s osr cio
sailiz t nare e t wi hmks $ 0 0 ,0 0 aa por mwi hhs cnr ue s imot nly t t e
t b aio gemn, hc ae 4 ,0 0 0 vil­ r ga hc a o t ibt d o pra t o h
alet Mxc fo t es pot o t eps , t eMx a pee th hlee o cnt uto at it . Fo J ly1
b o ei o r h upr f h eo h eicn rsn ig vl f o sr ci n civ y r m u ,
F a c M ise i rpre t hv anucd o 14 t Ot br 1 14, a poimt ly $ b nws
inne in t r s e ot d o ae none n 90 o coe , 91 pr x ae 8 illio a
Nvme 2 t a t e ps w b sailizd a 4 5 shdle fo df ne cnt ut n o wi h aot
oe br 6 ht h eo ill e t b e t .8 c e u d r ee s o sr cio , f hc bu
psst t edlla ( q ivle t t $ .2 6 ). TeCbn $ b nwser akdfo m aypr oe (e c ­
eo o h o r e u a n o 0 0 2 h ua 3 illio a amr e r ilit r upss xlu
ps hld pat a a pr wh t e Uit d Sae sv o m ay huin). Te por mpoids fo
eo e r cic lly t a it h n e t t s i e f ilit r o s g h r ga r v e r
dlla d r gt emnhjute dd
o r uin h o t s ne.
a epni n o inut ia f c ie t cs r uh
n xa so f d sr l ailit s o ot o g ly
A t t eb c e Er pa c re ce, inwi hs a $y2 b n as m r e t a a pivt epniue
s o h lokd uo en urni s hc mll 2 illio , u lagr hn ll r ae x e dt rs
t a s ci n cni u t b eeue udr licne t e fo nwf coycnt ut nd r gt edcd o t e
r nato s otne o e xc t d ne e s, h r e at r o sr cio uin h eae f h
r t fo t eS e i hko ahsrmi e ao n $ .2 8 - t irie. Tedf nehuin por msr uh e u a
ae r h wds r n a e and r ud 0 3 5 h t s h ee s o s g r ga i o g ly qiv­
$ .2 9 dpnin uo t esz o t et a s cio , ad le t t a epnit rs fo nwrs e t l b ild gi
0 3 0 e e d g pn h i e f h r nat n n n o ll xe d ue r e eidnia u in n
S i s f a c hv cnine t b s plie b S i s 1 4 ; mr t a $ % b n hs be shdle fo
w r ns ae o t ud o e up d y w 9 0 oe hn 1 illio a en c e u d r
s
s




G o ld M o v e m e n t s

B u ild in g

MONTHLY REVIEW, DECEMBER 1, 1941

94

m ayhui ga d$4 m nfo hui gdf ne
ilit r o sn n 70 illio r o sn ee s
wr es adcm uit f c ie.
okr n o mny ailit s
I t r s o dlla epniue, a litle les t a
n em f o r x e dt rs
t s hn
hlf o t e shdle cntut npor mhdbe
a f h c e u d o sr cio r ga a en
cmlee b Ot br1o t isya. Tepor m f r
o p t d y coe f h er h r ga s o
m ayhui ga dpivt lyf acdp n epnio
ilit r o sn n r ae inne la t xa s n
wr ao tt o h d fns e , adGvr mn fnne
ee bu w-t ir s i i hd n oen e t i acd
fat r cnt uto hd rahd t e hlf-wy mr ,
coy o sr ci n a ec e h a a ak
wi o lydet ir o t ef nsfo m aycntu­
hle n n h d f h u d r ilit r o sr c
t naddf nehui ghdbe epne . Tnaiv
io n ee s o sn a en xe dd e t t e
p n i d ae afut e epni no t eshdle f r
la s nict
rhr xa so f h c eu o
df necnt ut n psib t oe $0b nb t e
ee s o sr cio , os ly o vr 1 illio y h
edo 14.
n f 92
Reported Defense Construction Schedules
(Dollar figures in millions)
Per cent of
Total program
July 1, 1940- total expended
October 1, 1941 as of Oct. 1,1941
Total defense construction........................................

$7,958

46

Military construction (except military housing)..

2,952

33

Industrial facilities......................................................
Financed by U.S. and British Governments. . . .
Privately financed*.................................................

2,566
2,207
359

51
49
67

Housing..........................................................................
Military housing......................................................
Defense housing and community facilities..........

2,440
1,698
742

56
65
36

* Under “ accelerated depreciation” program, Second Revenue Act of 1940.
Source: Office of Production Management.

E m p lo y m e n t a n d

P a y r o lls

Teews pat a n nt c ag ine p y e t
hr a r cic lly o e hne mlomn
a Nw okSaef coie dr gt emnho Ot br
t e Yr t t at r s uin h ot f coe,
a d egn mvmns a og iniv ul inut ie
s ivr e t oe e t mn d id a dsr s
laglycne dec ohr Pyo dcesds hly
r e acle ah t e. ar lls erae lig t
o i ginpr t t eosrac o Clu bsDyad
w
n at o h bevne f o mu a n
rlig u hlidy dr gt erpre pypr d Cn
e io s o as uin h e ot d a eio . o­
t uda d io st wr in f re a s ipad, a ca
ine dit n o ok g ocs t h yr s irr ft
ad f er s f coie, adohr p ns wh df ne
n iram at r s n t e la t it ee s
wr wr lagly rs o sb fo t e eg t e t cn
ok ee r e epni le r h i henh o­
sc t e mnh gin in e p y e t in t e mt ls
euiv o t ly a
mlomn h ea
admc inr inut ia go p Hwvr avr t o
n ah ey d sr l r u. o ee, aiey f
f coscmi e dr gOt brt ofe t eei cess
at r o bnd uin coe o fst hs nrae.
Saoa f cos rs lt dinlag e p y e t dc ns
es nl at r eue
r e mlomn eli e
a cnei sadwmn c t in f m lao ds ue
t anre n o e ’s loh g ir s br i pt s
,
oc re a svr l p ns ads ot gs o mt r ls
curd t eea la t, n hrae f aeia
wr rpre t hv cue ‘‘pioit sue p y e t’’
ee e ot d o ae asd r r ie nmlomn
i t enner u mt l ads inut ie. Tt l fa­
n h o f ro s ea n ilk dsr s oa c
t r e p y e t ws 2 pr cn aoe t e Ot br
oy mlomn a 7 e e t bv h coe,
14 lee adpyo wr 5 prcn h hr
90 vl n ar lls ee 1 e e t ig e.
I t eUit dSae a awo , a inNw okSae
n h n e t t s s hle s e Yr t t ,
fat r e p y e t s o e n nt i ces dr g
coy mlomn hwd o e nrae uin
Ot br Hwvr pyo fo t ee t ecut yrs
coe. o ee, ar lls r h nir o nr oe
2 prcn, peu alyo i gt i cesdwg r t s
% e e t rs mb w o nrae ae ae,
n
lo grwr in hus adoetm py e t. Tecn
ne ok g or, n vri e amns h o­
t udh in o nwwr esb cnen whdf ne
ine ir g f e okr y ocr s it ee s
odr wsofe inOt brb saoa dc ns i t e
r es a fst coe y es nl eli e n h
mnf cue o f o po ut ad c ra e t oc­
a uat r f od r dcs n ut ilmns ca
soe b mt r l s ot gs Cmae whOt br
i nd y aeia hrae. o prd it coe
a ya ao fat r e p y e t ws 1 y2 pr cn
e r g, coy mlomn a 8 e et
get radpyo wr 4 y2 prcn lagr
rae n ar lls ee 3 e et r e.
A huht ers i t t lmn f cuin e p y e t
lt o g h i e n oa a uat r g mlomn
wsc ekdinOt br a i s o nint eacma y g
a hce coe, s s hw h co pnin




Em p loym ent in E igh teen Selected P riva te D efen se Industries
Com pared w ith T o ta l M an u factu rin g E m p lo ym en t
( 1 9 3 9 average = 1 0 0 per cen t)

d ga , wr in f re i 1 slet ddf neinut ie
iar m ok g ocs n 8 e ce ee s dsr s
cni ud t e epni nwi hsat dinMy 14.
o tne h xa so hc t re
a , 90
E p y e t in t ee inut ie, a cmile b t e
mlomn hs dsr s s o p d y h
Bra o Lbr Saisic, hs dule snet esat
ueu f ao t t t s a o b d i c h t r
o t ewr cmae wha i ces o ao toet ir
f h a, o prd it nnrae f bu n h d
i mnf cuin e p y e t a awo . Teget r
n a uat r g mlomn s hle h rae
pr o t e ageae gin t o p c a sel m ,
at f h grgt a ok lae t t e ills
f udie, e cr a mc i ey p ns a d s ila
o nr s let icl ahnr la t , n im r
inut ie wi t e get s pre t g i cess wr
dsr s hle h raet ecnae nrae ee
rcr e a p ns po uin f i hd wr po ut
eodd t la t r dc g ins e a r dcs
s c a a ca , mn io s a ds ip.
uh s ir r ft uit n, n h s
Bra o Lbr Saisic etmt s inic t t a
ueu f ao t t t s si ae d ae ht
t t l nngic lt r l e p y e t int eUit dSae
oa o ar u ua mlomn h n e t t s
dr g Ot br hld a a poimt ly t e Spe br
uin coe e t pr x ae h e t me
lee o 4 ,7 0 0 . Mnho o t c agswr s h
vl f 0 0 ,0 0 o t -t -mnh hne ee lig t
i a mjo c sii ai n o nngic lt r l e p y
n ll a r lasfcto s f o ar u ua mlo­
mn. I cmais nwhOt bro latya, t et t l
e t n o pr o it coe f s er h oa
s o e a gin o a poimt ly 3 0 ,0 0 M ay
hwd a f pr x ae ,4 0 0 . ilit r
f re ( o inlue int e aoeet ae), a huh
ocs nt c dd h bv simt s lt o g
a ot 1 0 ,0 0lagrt a aya ao i cesdo ly
lms ,3 0 0 r e hn er g, nrae n
s hlyoe Spe br
lig t vr e t me.
C o m m o d it y P r ic e s

R in pic t ne ce dvloe dr g Nvme
is g r e e dni s ee pd uin oe br
i a nme o bsc cmoii s nt udr cilin
n u br f ai o mdte, o ne e g
rg laio s wic hds o ndwwr rat n at r
eu t n, h h a hw o n ad ecio s fe
t em d o Spe br Ac r in t t eBra o
h idle f e t me. cod g o h ueu f
LbrSaisic cmrhniv we lyine, t eaeae
ao t t t s o pe e s e ek dx h vrg
o wo s le cm oiy pi e rs aot 1 pr cn
f hlea o mdt rcs oe bu e e t
i Nvme adrahdt ehg etlee sneJnay
n oe br n ec e h i hs vl i c a ur ,
13.
90
Wilei cessinwo s lecmoiypicsdr g
h nrae hlea o mdt r e uin
Nvme wr gnr lly mc s a r t a in t e
oe br ee e ea uh mlle hn h
s r g t e get r pr o t e avne fo t e wr
pin, h rae at f h dacs r h a
pro hs be cne tae int e ps ya, a t e
ei d a en o cnr t d h at e r s h
acma yn t b i d ae. O Nvme 2, t ea
co pni g ale nict s n oe br 2 h ll
cm oiy pic ine sod a a pin 1 pr cn
o mdt r e dx t o t o t 6 e e t
h hr t a a ya ao ad 2 pr cn aoe t e
ig e hn er g n 3 e e t bv h
pe a lee Te ms mr e pic i cess wr
rwr vl. h ot akd r e nrae ee
min in r wmt r ls pric laly f r po ut
a ly a aeia , at u r am r dcs
wi haeae 4 prcn hg e t a inAg s, 13.
hc vr gd 8 e e t i hr hn uut 99

FEDERAL RESERVE BANK OF NEW YORK

95

Pics o f o s adt xile, inluin imot die s
r e f od n et s c d g pre t m
a wll a t oe o dmsi oig , a ors s ap .
s e s hs f o etc r in ls oe hr ly
O t eohrhn, picso mt lsadmt lpo ut—
nh t e a d r e f ea n ea r dcs
o pric la i pra c int edf nepor m hv
f at u r mot ne h ee s r ga —ae
be s b ce t ef ci ecnr l m s rsa dfo t e
en ujet d o fetv o t o e ue n r h
a
ms pr hv s o nr laivlys a pic avne.
ot at ae hw e t e mll r e dacs
Dr g Nvme vr u a d io a pic cnr l
uin oe br aio s dit nl r e o to
m s rs wr t kn Te Sceay o Ar u ue
e ue ee ae . h ert r f gic lt r
a
akdt e cmoiy ec ags t rdc s ap t e
s e h o mdt xhne o e ue hr ly h
dily pic f cut n peio s a wdo f t r s
a r e lut aio s r v uly llo e n uue
ta s ci n inga adcto . Te Oi e o Pic
r nato s r in n ot n h f c f r e
f
Am isr t net ne it mnaoy cilin rg la
d in t aio xe dd s a dt r e g eu ­
tos t cvr aot 4 cm oiy go p c re t .
i n o oe bu 2 o mdt r us ur nly
Nwmxmmqoai n wr anucddr gN­
e ai u ut to s ee none uin o
vme fo zn a y, sel csins b ildr’ hr ­
e br r i c llos t e at g, u es ad
wr, aduhlseyfa r s adanme o rvso s
ae n po t r bic, n u br f ei i n
wr md i peio scilin shdle. Mnf cues
ee ae n rv u e g c eu s a uat rr
o r ilwyeu mn ado mt l ofc f r it r ad
f a a qip e t n f ea fi e un ue n
eu mn, a wll a poueso s c cnu e gos
qip e t s e s r dcr f uh os m od
r
a e cr a ap ne, coi g a d hain soe,
s let icl plia cs okn n et g t vs
r do, adr g wr rqet dntt avnet epics
ai s n us ee euse o o dac h r e
o t eepo ut aoet epe a glee .
f hs r dcs bv h r vilin vls
Saoa f cos cni ee , e cr pwr pout n
es nl at r osdrd letic o e r dcio
apast hv be mina e inNvme a aot
per o ae en a t ind oe br t bu
t esmavne lee a i t et repee in mnh.
h a e dacd vl s n h he rcd g ot s
Tt l at mblepo ut n inluin pse grcr
oa uo oi r dcio , c d g asne as
a dt uk, a pr nlya poimt d30 0 uit d r
n r c s pae t pr x ae 5 ,0 0 n s u­
in Nvme ( bu 3 prcn blo t ef uefo t e
g oe br ao t 0 e e t e wh igr r h
crepnin mnho lat y a), rf ci gt einlu
ors o d g ot f s e r eletn h f ­
ec o rsr t n uo pse grcro t u ef ci e
ne f et icio s pn asne a upt fetv
snet ef s o Ag s. Fo t eacma yn c at
i c h irt f uut r mh co pni g hr
o po ut n adr t il sle o pse gr cr it i
f r dcio n ea a s f asne as s
ei e t t a da r i vnoie o 14 mdls wr
vdn ht ele ne t r s f 92 oe ee
b ilt u in Spe br ad Ot br t a s bt nia
u p e t me n coe o usa t l
et n, f llo in a r p rdcio in pse gr cr
xe t o w g a id e ut n asne a
sok dr gt epro o rcr sle bt enMrh
t cs uin h ei d f eod a s ewe ac
adJn o t i ya adafut e rdci ndr g
n ue f hs er n rhr e uto uin
J ly adAg s. Et ae po ut ninNvme,
u n uut simt d r dcio
oe br
ad po ut n qoa fo Dcme, Jnay ad
n r dcio ut s r ee br a ur , n
Fbur , i d ae t e mg it d o t e epce d­
e r ay nict h an ue f h xet d e
c n inpse grcro t u incm gmnh. If cr
li e asne a upt o i ot s as
n
aepoue u t t epecibdlims t t l pse gr
r r dcd p o h rsr e it , oa asne
cr po ut nin t e Ag s-Fbur pr d wu
a r dcio h uut e r ay eio o ld
I a pasf o aa b inomt nt a inut ia fa 4 prcn s oto po ut nint ecrepni g
t per r m vilale f r aio ht d sr l ll 0 e e t hr f r dcio h ors o dn
oeaio s dr gNvme cni uda n t e li e ya-aopr dAg s, 14-Fbur , 14.
pr t n uin oe br o tne lo g h ns er g eio, uut 90 e r ay 91
o rcn t ne ce. Wlls sando epnin oea
f ee t e dni s e ut i e r x a d g pr ­
P
T
O
to s wr inic t dindf nei dsr s wi “nn
i n ee d ae ee s nut ie, hle o n coe h es nlly d se dx f r dcio
es nia at it s uin sac mt r ls wr hld I Ot brt esao a a jut dine o po ut n
se t l” civ ie s g cre aeia ee e
udrrsr in b Gvr mn limaio suo po u­ ad tae cmue a t is bn dc nd oe pin
ne et a t y oen e t it t n pn r dc n r d o pt d t h a k eli e n o t
to o b uaa b y o rwmt r l s plie. I f rhr t 18 pr cn o et ae lo gt r t e d
i n r y nvila ilit f a aeia up s n ut e o 0 e e t f simt d n em rn.
t efe o r t il t a e we lyf ue o dprmn Tef uefo Ot braya aows 9 . Tedc n
h i ld f ea r d, ek ig rs n e at e t h igr r coe er g a 6 h eli e
soes le s o e alagr i ces oe Ot br t a o t eine i Ot br li et elagr dc n i Sp
t r a s hwd r e nrae vr coe hn f h dx n coe, k h r e eli e n e ­
i uullyt ecs, fo w gt ercsi nint a mnh t me, rs lt df o s c e in int evlu eo r t il
s s a h ae llo in h eeso ht ot . e br eue r m lakn g h o m f ea
Ahuh hmee b lao d pt s pric laly t a e saoa f cos cni ee . Tegnr l lee o
lt o g a prd y br is ue, at u r r d, es nl at r o sdrd h e ea vl f
t e“c piv” ca m ecnr vry a wll a b srp po ut n o t eohr hn, a pas t hv mvd
h a t e ol i o t oes , s e s y ca r dcio , n h t e a d per o ae oe
n
w
s ot gs sel m oeai n aa hldwh af w s m ht hg e inOt br
hrae, t e ill pr to s gin e it in e o e a i hr coe.
e at e t t r a s hc n h vr g ae
pre t g pins o r t d cpc y Ta in i t e Dprmn soe s le, wi ho t e aeae hv
ecnae o t f ae a ait . r d g n h
cto ga gos mr e ws gnr lly s c dr g s o nlitle c ag bt enSpe br a dOt brin
ot n r y od akt a e ea lak uin hw t hne ewe e t me n coe
Nvme, b tat it a t em wsrpre t hv ps yas t isya fe aot 1 prcn, wilesle
oe br u civ y t h ills a e ot d o ae at er, h er ll bu 0 e e t h a s
cni uda ah hlee A r rah gt efa pa o mil odr hue a dvr t c ansoe s se s
o tne t ig vl. fte ec in h ll ek f a r e oss n aiey hi t r yt m
inOt br lod g o r ilwy f e h dc ndsm inrae cnidr b lest a uul bt enSpe ­
coe, a ins f a a r ig t eli e o e cesd o s ealy s hn s a ewe e t m
­
wa int eer weso Nvme, b tt erdci n br ad Ot br Tee ws a s bt nia saoa
ht h aly ek f oe br u h e uto e n coe. hr a usa t l es nl
wslespo o ne t a uul a t ist eo t eya. i ces inr t il s le o nwpse gr cr, b t t e
a s r nucd hn s a t h im f h er nrae ea a s f e asne as u h
THOUSANOS
OF CARS

U nited S tates Production and R etail Sales of P a ssen ger Au tom obiles
(D epartm en t of Com m erce production data through O ctober and
Au tom obile M an u factu rers A sso ciation data on retail sa le s;
N ovem ber production estim a ted ; D ecem ber,
1941F ebruary, 1 9 4 2 production figures are Office o f
Production M a n a gem en t a llotm en ts)

United States Bureau of Labor Statistics
Weekly Indexes of Wholesale Commodity Prices

Index
Percentage change Nov. 22,
November
1941 compared with
22, 1941
(1926 = 100)
Nov. 23, 1940 Aug. 26, 1939
+ 3 1 .3
+ 2 2 .9
+ 2 1 .8
+ 1 1 .4
+ 1 5 .5
+ 8 .7
+ 1 2 .7
+ 6 .2
+ 9 .7
+ 1 2 .4

+ 4 7 .8
+ 3 4 .2
+ 3 4 .1
+ 2 4 .1
+ 2 0 .6
+ 1 9 .7
+ 1 6 .9
+ 1 0 .6
+ 8 .5
+ 1 9 .2

Farm products............................................
Foods............................................................
Textile products.........................................
Hides and leather products.....................
Chemicals and allied products...............
Building materials.....................................
Housefurnishing goods.............................
Metals and metal products.....................
Fuel and lighting material.......................
Miscellaneous..............................................

90.3
89.5
90.4
114.9
89.5
107.4
101.7
103.4
79.4
87.1

All commodities.................................

92.2

+ 1 6 .0

+ 2 3 .3

Raw materials............................................
Semimanufactured articles......................
Manufactured products...........................

89.7
8 9.5
94.0

+ 2 3 .4
+ 1 1 .2
+ 1 3 .4

+ 3 5 .5
+ 2 0 .3
+ 1 8 .5

P r o d u c tio n

and T rade




roduction and

rade in

ctober

96

MONTHLY REVIEW, DECEMBER 1, 1941

vlu eo sle ws4 prcn lo e t a inOt br
o m f a s a 3 e e t wr hn coe,
14. A e a jut e tfo saoa f cos t ef wo
90 ft r d smn r es nl at r, h lo f
gos t r uh pimr d t ib t n c a nls a ei­
od ho g r ay isr uio hne , s v
dne b r ilwy fr ig t tafc apas t hv
e cd y a a e h rfi , per o ae
dcesds hly bt enSpe br ad Ot br
erae lig t ewe e t me n coe.
1941

1940
October
Indexes of Production and Trade*
(100 = estimated long term trend)
Index of Production and Trade............

96

Production..................................................

99

August

Sept.

October

109p

108p

116

115p

117p

124
131
118

127p
135p
118p

128p
138p
119p

Producers’ goods— total.....................
Producers’ durable goods...............
Producers’ nondurable goods........

10
0
10
0
11
0

Consumers’ goods— total....................
Consumers’ durable goods.............
Consumers’ nondurable goods. . . .

97
96
97

105
108
105

102p
96p
104p

104p
9 5p
106p

Durable goods— total..........................
Nondurable goods— total...................

99
99

10
1
124

123p
IlOp

125p
lllp

Primary distribution................................
Distribution to consumer.......................
Miscellaneous services.............................

87
96
93

108
115
105

103p
lOOp
103p

lOlp
95p
102p

Cost 'of Living, Bureau of Labor Statistics
(100 = 1935-39 average).......................

10
0

106

Wage Rates
(100 = 1926 average)............................

114

123

124

Velocity o f Demand Deposits*
(100 = 1919-25 average)
New York City.......................................
Outside New York City.........................

26
54

27
61

27
59

p Preliminary.

D e p a rtm e n t

109

30
59

liqos S bt nia ya-t -ya gin, hwvr cn
ur. usa t l e r o e r a s o ee, o­
t ud i s le o hm f r is ins a d hue o
ine n a s f o e un h g n oshld
apa cs
pli ne.
Frt et rewe s pr de ddNvme 2 , s le
o h he ek’ eio ne oe br 2 a s
o t erprin dprmn soe wr 8prcn h hr
f h e ot g e at e t t rs ee e e t ig e
t a int ecrepni gweso 14, a dt edily
hn h ors o dn ek f 90 n h a
rt o s le fo t is prio o Nvme a pas t
ae f a s r h ot n f oe br per o
hv i cesdmr t a uul oe t e Ot brle e
ae nrae oe hn s a vr h coe vl.
Tisbn ’ssao a a jut di dxo dprmn
h a k es nlly d se ne f e at e t
soesok avne f u pinsf rhrd r gOt br
t r t c s da cd o r o t ut e uin coe
t 13 pr cn o t e 12-2 aeae Rt il sok
o 1 e e t f h 93 5 vr g. ea t c s
o mrhnis o hn int e r prin dprmn
f ec ad e n a d h e ot g e at e t
soe a t ee do t emnhwr 3 pr cn h hr
t rs t h n f h ot ee 6 e e t ig e
t a a t ee do Ot br 14. Fo rprsgt ee
hn t h n f coe, 90 r me ot ahrd
f o alime nme o t elagr dprmn soe
r m it d u br f h r e e at e t t rs
int isD t ic, it apast a s bt nia ya-t -ya
h isr t per ht usa t l e r o e r
i cessinine t r s wr cmo inpat a a
nrae
vnoie ee o mn r cic lly ll
t pso mrhni e t elags i cessoc rin in
y e f ec ads, h r et nrae cur g
hsey lugg, r do ad ms a ie s t y ad
oi r , gae ai s n uicl t m os n
,
s ot g gos u be s saio ey wmn udr
prin od, mrlla, t t nr , o e ’s ne­
wa ad acsoi s in ns wa, mn ad b y’
er n ces re, fa t ’ er e ’s n o s
f r is ins sm lins o hue o f r is ins ad
un h g, o e e f oshld un h g, n
s ewr. Ott nin odr fo mrhni e p r
ilvr ae usa d g r es r ec ads u­
c ae b t esoe, btntytdlivrdwilea poi­
hsd y h t rs u o e e ee , h pr x
mt ly5 prcn hg e a t ee do Ot br 14,
ae 0 e e t i hr t h n f coe, 91
t a a ya bf r, wr lo e t a a t e e d o
hn er eoe ee wr hn t h n f
Spe br inic t gt a peio s odrdmrhn
e t me, d ain ht rv uly r ee ec a ­
ds mvdinosok whu nwcmimnsbi g
ie oe t t cs it o t e o m e t en
t
md a acrepni gr t .
ae t ors o dn ae

* Adjusted for seasonal variation.

S to re

Percentage changes from a year ago

T rade

Dr g Ot br s le o t e r prin dprmn
uin coe a s f h e ot g e at e t
soe int isD t ic wr o lyao t5prcn hg e
t rs h isr t ee n bu e e t i hr
t a inOt br 14, t es a s ya-t -ya avne
hn coe, 90 h mllet e r o e r dac
sneer s r g A i d ae o t e acma yn
i c aly pin. s nict d n h co pni g
c at Ot br sle fe cnidr b blo t e h h
hr, coe a s ll o s ealy e w h ig
Spe br lee piniplly rf cin c ra e t o
e t me vl, r c a elet g ut ilmn f
r t ilb y gf llo in t ei ps io o t enw e ea
ea uin o w g h moit n f h e Fdr l
ecs t xs o Ot br 1 Lr e rdcio s bt en
xi e ae n coe . ag e ut n ewe
Ot br 14 ad Ot br 14 wr rpre i
coe, 90 n coe, 91 ee e ot d n
s le o fus wmn cas ads it, a dw e ad
a s f r, o e ’s ot n u s n i s n
n

Net Sales
Department stores

Stock on hand
end of month
October,
1941

October,
1941

Jan. through
October, 1941

0
+ 7
+ 5
+ 12
+16
+ 4
+ 4
+ 9
+ 6
+ 16
+19
+15
+ 6
+23
+2 1
+34
+24
+34
+27
+13

+ 12
+15
+14
+22
+27
+12
+14
+ 19
+15
+23
+27
+22
+12
+23
+24
+34
+20
+25
+16
+16

+35
+34
+ 27
+39

All department stores...................

+ 5

+14

+36

Apparel stores................................

— 5

+ 11

+37

New York City..........................................
Northern New Jersey...............................
Westchester and Fairfield Counties. . . .
Lower Hudson River Valley...................
Poughkeepsie..........................................
Upper Hudson River Valley...................
Central New York State.........................
Mohawk River Valley..........................
Northern New York State.......................
Southern New York State.......................
Binghamton.............................................
Western New York State........................
Niagara Falls..........................................

+35
+35
+33
+52
+ 57
+34
+54
+54
+49
+55
+33

Indexes of Department Store Sales and Stocks, Second Federal Reserve District
(1923-25 average = 100)
1940

1941

October

Index o f Dollar Volum e o f Sales o f Reporting Department Stores
in Second Federal Reserve District, not Adjusted for Seasonal
Variation (1923-25 average= 100 per cent)




August

Sept.

October

Sales (average daily), unadjusted.................
Sales (average daily), seasonally adjusted...

109r
95r

100
134

125
120

112
98

Stocks, unadjusted............................................
Stocks, seasonally adjusted............................

95r
84r

98
103

113
109

128
113

r Revised.

MONTHLY REVIEW, DECEMBER 1, 1941

Business Conditions in the United States

1935

1936

1937

1938

1939

1940

14
91

Index of P h ysical V o lu m e of Industrial Produc­
tion, A d ju ste d for Seasonal V ariation ( 1 9 3 5 1 9 3 9 a v e r a g e ^ 1 0 0 per cen t; durable m an u ­
factures, nondurable m anufactures,^ and
m inerals expressed in term s of points
in total index)

Indexes of V alu e o f D epartm en t Store Sales
and S tocks, A d ju sted for Seasonal V ariation
( 1 9 2 3 -1 9 2 5 a v e r a g e ^ 1 0 0 per cen t)

W ed n esd a y F igu res o f T o ta l M em ber B ank R eserve
B alances at Federal R eserve B anks, w ith
E stim ates of Required and E x cess R eserves

(Summarized by the Board of Governors of the Federal Reserve System)
I N D U STRIAL activity continued to increase in October and the first half of
November and there was some further advance in prices of industrial
materials and finished products. Distribution of commodities to consumers
declined in this period following an unusually large volume o f trade in the
preceding three months.
P roduction
Volume of industrial production increased further in October and the
B oard’s seasonally adjusted index advanced from 161 to 164 per cent of the
1935-39 average. Increases in activity occurred mainly in industries producing
machinery, armament, and other durable manufactures required under the
defense program. In the meatpacking industry activity also advanced consid­
erably and output of other manufactured food products, which has been un­
usually large in recent months, declined less than seasonally.
Automobile production increased during October and in the first half o f
November was sustained at about the rate reached at the beginning o f the
month. Production in October approximated the quota permitted for the
month, whereas in August and September output had been considerably below
the quotas set, owing in part to delays incident to the changeover to new model
production and to difficulties in obtaining certain materials. Since the begin­
ning of the model year production has been substantially in excess of retail
sales and dealers’ stocks have risen sharply. Output of cars and trucks in
October was about one-fourth smaller than in October last year; in the
industry as a whole, however, activity, as measured by man-hours worked, was
about the same as a year ago, apparently reflecting a shift to armament
production.
In most other manufacturing industries output in October was maintained
at or near the rates prevailing in other recent months. At cotton mills activity
increased, following some reduction in the previous month, while at wool mills
there was a slight decline from the peak reached in September. Steel produc­
tion rose to an average rate o f about 99 per cent of capacity during October
but declined slightly in the first half o f November.
Coal production declined somewhat in October and early November, while
output o f crude petroleum increased further to new record levels. Iron ore
shipments down the Lakes were maintained at a high rate and through the end
of October amounted to 71,600,000 gross tons, a larger volume than had previ­
ously been transported in any complete shipping season.
Value o f construction contract awards decreased slightly in October,
according to figures of the F. W. Dodge Corporation. Declines in awards for
publicly financed work were partly offset in the total by an increase in privately
financed projects. Awards for residential building showed little change, al­
though an increase is customary in this month. Contract awards in October
continued in larger volume than a year ago. Total awards were 60 per cent
larger, reflecting increases of 13 per cent in private construction and o f
112 per cent in public work.
D istribution
Distribution of commodities to consumers declined in October following
an unusually large volume o f trade in the preceding three months. During
the third quarter sales had been stimulated considerably by several factors,
notably apprehension that there might be shortages and higher prices o f
many consumers’ goods later on, as well as desire to avoid stricter instalment
credit terms, effective September 1, and higher taxes on many products effec­
tive October 1.
Railroad freight car loadings declined somewhat from September to
October, owing principally to decreased shipments o f grain products and coal.
Shipments of livestock increased and ore loadings showed less than the usual
seasonal decline.
Commodity P rices
Prices of agricultural commodities, which had declined from the early part
of September to the middle o f October, have advanced somewhat since that
time and prices of industrial commodities have increased further. Recent
advances for industrial raw materials and finished products have been more
restricted than in earlier periods, reflecting partly an extension o f Federal
maximum price action particularly to petroleum products and to selected metal,
chemical, and textile products.
Prices in retail markets have continued to advance sharply. In September
the cost o f living, as measured by the Bureau of Labor Statistics index, in­
creased 2 points to 108 per cent of the 1935-39 average and was 7 per cent
above the level of last March. Since September retail food prices, which
usually decline at this season, have increased further and preliminary data
indicate that retail prices of other commodities have continued to rise.
B ank Credit
Total loans and investments at reporting member banks rose further dur­
ing October and the first two weeks in November. Holdings of United States
Government securities increased and commercial loans continued to advance.
Excess reserves of member banks declined from 4.7 billion dollars to
3.5 billion on November 1, reflecting the increase in reserve requirements
previously announced by the Board to be effective on that date.

1935

1936

1937

1938

1939

1940

Money Rates in New Y ork City




14
91

U nited S tates Government Security M arket
Long term Treasury bonds declined slightly in price during the early part
o f November, following a relatively sharp increase after the middle of Sep­
tember to a record high level around November 1. Yields on short term issues
have firmed since early in September, the yield on Treasury notes of December
1945 advancing from 0.62 per cent on September 15 to 0.83 on November 15,
and the bill rate rising to 0.258 per cent.

FEDERAL RESERVE BANK OF NEW YORK

Defense Savings Bonds

I odr t po oe t e et bs mn o pyo
n r e o rmt h sali h e t f ar ll
(3 T cet abc lo o s v g, wi ht es vr
) o rae ak g f ains hc h aes
ill ae vilale o pn fe h ee s r ga
ddcio p n int e ofcs adp ns o a d io a w hv aa b t s e dat rt edf nepor m
e ut n la s h fi e n la t f dit nl
ut ile d dcio
ilia od r r
bsns cnen adohr ogn aio s s t a e ­ isc rasdaanreuts pfsiv a doei alagn
ui es ocr s n t e r a iz t n, o ht m qa t ie an pocmnosc le ng dsin le e
unit gi b o e o i n srb i
b
p ye myhv aa b t is cne i n mt o o
loes a ae vilale h ovne t ehd f r e o a t in oa r dcio n mlomn.
ac mlain f nsfo t eprhs o Sv g Bns odrt mina t t l po ut na de p y e t
cu u t g u d r h uc ae f ains o d,
h r aly nrae ae f e ea no e n
a atv por mhsbe anucdb t eDf ne Te ge t i cesd r t s o Fdr l i cm ad
n ci e r ga a en none y h ee s
ecs poit t xt n wi h ae a p ale t 14
xes r f s aaio hc r plicb o 91
Sv g ogn aio s in t is D t ic. I NwYr
ains r a iz t n h isr t n e ok
Cy t e c ar a o t e Get r NwYr Df ne i cm w o cus asr lag a onso prhs
it , h hi mn f h rae e ok ee s no e ill f ore bob r e mut f uc a­
Sv g cmit e M. Lw W Dula, Peidn, i g pwr o pros s b c t s c t xs adw
ains o m e, r e i . o g s rs e t n o e f es n ujet o uh ae, n ill
t
s
Mt a L I s r ne Cma y anucdt a M. cnurnlypoid lag a o nst a inf a c g
uul ife nua c o pn, none ht r o c re t r v e r e mut o id innin
Gog LHris nPeidn, Nw okL I s r ne t e Nt nl df ne por m bt t t e et n t a
ere . ar o , rs e t e Yr ife nua c h aio a ee s r ga , u o h xe t ht
Cma y hdacpe t ec ar a s ipo t efnne t xs ae r isd t e cpc y o i cm t x pyr,
o pn, a ce t d h hi mnh f h i ac ae r a e , h a ait f no e a aes
go po t eNwYr Cycmit e wic inlue epc lly o t oe woei cm hs nt i cesd t
r u f h e ok it o m e, h h c ds s eia f hs hs no e a o nrae , o
t
inua c cmai s bns adinet e t hue. I prhs Sv g Bns i lesnd T a inrain
s r ne o pne, ak, n vsmn oss t uc ae ains o d s se e . o n ces g
i rpre t a 10 life i s rne udr r es i et n, t eeoe t es ceso t eDf neSv g po
s e ot d ht 0
nuac newit r n xe t hrf r, h ucs f h ee s ains r ­
NwYr Cy ae aot t bg s se aic po o ga w dpn uo acleai n o prhss o
e ok it r bu o ein yt mt r m­ r m ill e e d pn ce r to f uc ae f
t n o t e pyo ddci n p n a og e p yr Df neSv g oligt n b t oeiniv uls woe
io f h ar ll e uto la mn mloes ee s ains b aio s y hs d id a hs
int is ae, a ef r wi hi epce t b s ple i cm hs i cesd Frhr oe fo t oewr es
h ra n fot hc s xet d o e up ­ no e a nrae . ut emr, r hs okr
mne b s ila wr b rpee t t e o i vsmn wo udr t e pee t i cm t x la , sill ae nt
e t d y im r ok y e rsnaivs f net e t h, ne h rsn no e a w t r o
bnin ogn aio s P n ae a o bi g md b s b c t i cm t xt nt a ymt r l et n, if a
a k g r a iz t n. la s r ls en ae y ujet o no e aaio o n aeia xe t t
t e Df ne Sv g ognz t n t pee t t lao a s se aicprhsso Df neSv g oligt n
h ee s ains r a i aio s o rsn o br ll, yt mt uc ae f ee s ains b aio s
ogn ai n t e pyo ddci np nfo t e p r w af r a o pruit t pric aeint ef a c
r a iz to s h ar ll e uto la r h u­ ill fod n pot n y o at ipt h inn­
cae o Sv g Bns I f r aio cm g t t e in o t edf nepor ma wll a poid arsre
hs f ains o d. nomt n o in o h g f h ee s r ga , s e s r v e eev
c
Fdr l Rsr e Bn o NwYr i d ae t a t e fo uedr gt epr do eoo i a jut e t t b
e ea eev a k f e ok nict s ht h r s uin h eio f cnm d smn o e
epce o t et r int no t edf nepor m
xet d n h em aio f h ee s r ga .
nme o pyo ddci np n et b hdb inu­
u br f ar ll e uto la s salis e y ds
t ia cmeca f a c l, adohr ogn aio s i
r l, o mri l, innia n t e r a iz t n s
S
N
cnt nlygo in.
o sa t r w g
Tedilyr t o s le o Sre EDf ne Sv g
h a ae f a s f ei s ee s ains
TeNwYr Sae Cmit efo t e Sle o D­ o d in h eod e e l e r isr u g
h e ok t t o m e r h a f e
t
s
f neBnsadSa p i hae b Gvr o Lh a , Nnme thwdaf Fhra ceev Dent dr o
e s o d n t ms s edd y oenr e mn Bv sbr se Scn utdri Raee t t icmein
oe
o e r e nr s in h u br f
Hnr r Car a , R hr C Ptes n J., Ca ­ o s s e , b t ea eo a i rae po ot n f
o oay hi mn ic ad . at ro , r hir n
u,
n
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a, n r yle u ic hir a ; r e il t s a r dnm au , t e n sdm indllas
s
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Fr , o lev f o t e F s Bso Cr oaio , i wss hlylo e t a inOt br ilyeo me o bns
od n ae r m h irt ot n opr t n s a lig t wr hn coe. T n br f o d
h u
o
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t t d in t ao. n p t t r a iz t n im r s
r
t t eNwYr Cy cmite, hs a obe et b ini ddsinfNvmeeec eoea eaargvfa,4o
o h e ok it o mt e a ls en sa­ a e raeo aot7prcn vrt de ae g 1
ne
c
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hd edd y r d ad . ec wrh f uf lo ,99 od suu coe. oh ily r r e f
e
o
t
add is nl, cut , c y adt w ogn aio s t o bnss ldhwvr t edilyaeah a $ 6 ,0 0 a
n iv io a o ny it , n o n r a iz t n o f od o , o ee, h a vrg ws 7 1mus
e
0,
po oe t e sle o Df ne Sv g oligt n hv cmae wh$ 3 ,0 0inOt br a i d ae rdc
rmt h a f ee s ains b aio s ae
be o aebi gognzd I NwJre, t e Sae to pf aoit9prc0t Tcoe—ninlut dle u­
en r r en r a i e . n e es y h t t io ord u 8 4e . hs f ue nic es e b
n
t
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t
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c .,
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n,
,
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o n . a n g s t t d in t ao. n o nci u, n y h e ea eev a k f e ok no o
r u
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h t t o m e s edd y oenr ule ,
t
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n
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o oay hi mn n r . . e e hir a ; nme dhlid s adS d e N e o rt er t
u rf a
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aa
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r . . mh s t t d in t ao.
hv be p cdo adily aeaebss inodr t
ae en lae n a vr g ai
re o
Te s leo Df ne Sv g oligt n o a w e ba o pr ilit S e M
h a f ee s ains b aio s n s id­
i
a a
Se
s ra asa a psi lehs t ef llo in o jet e: bninnt i aat ic.hvcgrgt, s1s,0f4 ei sn
ped cle s osb a h o w g b civs otd ic m Db y anagey 1 $le3o ,2r, aE
o s hs isr t e
ae 4 2 0 d
d
(1 T poid f ns t t eGvr mn t a i t enme o bnshst t le 1 6 ,0 0 Tesed
) o r v e u d o h oen e t o id n h u br f od a oa d ,2 1 0 . h 0 ay
t
f a cn t eNt nl df nepor m
inni g h aio a ee s r ga .
go t int enme o bnsbin isudint isD ­
r w h u br f od e g s e h is
h
(2 T cekinlaio ayt ne ce b as r i g
) o hc f t nr e dni s y bobn
pr o t e i cesdi cm bi ger e b lag t ic a pr nlyrf csis e o bnswi haebi g
at f h nrae no e en and y r e r t pae t elet sus f od hc r en
nmes o t e pplaio , wic ohr i e mh pid fo wh f ns ac mlae in t e acut o
u br f h o u t n h h t ew ig t a r it ud cu u t d h cons f
s
cmeeint eaqis io o cra gos t es ply e p ye cvrdb pyo ddcio p n aot d
o pt h c u it n f et in od, h up mloes oee y ar ll e ut n la s dpe
o wi hi lime bcueo df nepo ut nnes b bsns cnen adohrogn aio s
f hc s it d eas f ee s r dcio ed. y ui es ocr s n t e r a iz t n.




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