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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 mn adM . Lt Hll, V e Ca mn M. Nv bed isude o bciss fh dcevlu r prio o a, n r yle u ic hir a ; r e il t s a r dnm au , t e n sdm indllas s h mlle i to n n a e r 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 SaeAm isr t r A u-Saeogn aio , s ila su u g oe brrahdadily v aeo 8 7, 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 et lis e , hae b M. 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A W Hwe, Ca mn M. bns b ild gadlonas caimen lrn ui ns hir a , n r . . a ks hir a ; r ak, u in n a soi to s a dce it ains n, , Jh EMnin i SaeAm isr t r I Cnetc t a db t eFdr l RsreBn o NwYd, bt d 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 t e Sae Cmit e i hae b Gvr o Hr y o inlu s s b ps o ic ; o i g t t e lagr h t t o m e s edd y oenr ule , t a f n Hnr r Car a , adM. R B Nwll, Ca mn nt bcoeoley ynot nf ysinwvmehh de 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 u as o b aa M. T S S it i SaeAm isr t r 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. ales in ovember
