The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
M ONTHLY R E V IE W of Credit and Business Conditions Second Federal Reserve District Federal ReserveBank, NewYork February 1,1942 Areductionof$162,000,000betweenDecember24and J a uary14intheamountof currencyoutstandingalso DuringJanuarytheexcessreservesof memberbanks, sern v dtoincreasememberbankreservessomewhat. The inthe aggregate, showed asubstantial increase. This retue r flowofcurrencyfromcirculationafterChristmas rise, however, may be consideredinthe nature of an hasbn e e extremelysmall, however, especiallywhencon interimmovement, inasmuchastheprincipal reasonfor sideredn in thelightofthelargepre-Christmasoutflow,and theincreasewas adeclineinTreasurydeposits inthe intheweek endedJanuary21currencycirculationbegan Federal ReserveBanks. BetweenDecember24, thelow torise again he effect onmember bankreserves of point reached in 1941, and January 21, 1942, excess thenet Treas.urT y isbursementsandreturnflowof cur reservesofallmemberbanksrose$520,000,000toafigure rency to the Resd e rve Banks was partly offset by a of $3,580,000,000, andduringthissameperiodTreasury reductionof moreth n$100,000,000fromtheChristmas depositsintheReserveBankswerereduced$624,000,000 peakintheamountoa f FederalReserve“float” outstand to$284,000,000. in g . A n i n c r e a s e o f bout $175,000,000 in required Nationaldefenseexpenditureshavebeenproceedingat reservesof memberbana k salsolimitedtheriseinexcess therateof approximately2billiondollarsamonth, and reserves. Inthelast wee of January, excess reserves despite acceleratingsales of Savings Bonds, there has werereduced$100,000,000k , o wingchieflytoafurtherrise beena heavy drain on Treasury balances which had incurrencycirculation, afur erdeclineinoutstanding beenbuilt upinDecemberby“market” financingand Federal Reserve “float,” atnh d a further increase in incometaxcollections. ByJanuary19Treasurybalances requiredreserves. intheReserveBankshadbeensoreducedthattheTreas Of the$520,000,000riseinexcessreservesinthefour urybeganaseriesof withdrawalsof fundsfromspecial weeksendedJanuary21, $275,000,000occurredinNew (commercial bank) depositaries, inordertoprovidethe orkCityand$245,000,000inotherpartsofthecountry. funds neededtocoverthecurrent rateof net expendi Y ewYork City bank excess reserves onJanuary 21 tures. Consequentlyitdoesnotappearthatanymaterial N a m additiontomemberbankreservesistobeexpectedfrom ountedto$1,210,000,000, thehighestfigureforastate afurtherreductioninTreasurybalancesattheReserve mentdatesinceimmediatelypriortotheNovember1in Banks, and, infact, theprospectisthatthenext major creaseinreserverequirementpercentages,whentheexcess changeinmemberbankreserveswill beadeclinewhen amountedto $1,345,000,000. This improvement inthe paymentismadeforthenewsecuritiessoldinthenext reserve position of the NewYork money market has “market” financingbytheTreasury (whichtheSecre een due in largest measure to Treasury disburse tary of the Treasury has indicated will occur in b mentsinexcessoffundspaidintotheTreasury. Other February). factors have been a reduction in the amount of currencyoutstandinginthis area, foreignaccount dis of recurring rumors that the Government bursements inNewYork, and a moderate net inflow was planning to confiscate savings accounts, the Secre offundstoNewYorkfromotherpartsofthecountry— tary of the Treasury has made an emphatic denial of b oththroughbusiness transactions andthroughanin any such intent. On January 12, 1942, the Secretary c r easeinbalances of out-of-townbankswithNewYork of the Treasury issued the following statement: Citybanks. Part of thesegains of fundswasabsorbed “I wish to state most emphatically that there are no byaconcurrent riseinthereserverequirementsof the foundations whatever for such rumors. The Federal NewYorkCitybanks, accompanyingexpansionof their Government does not have under consideration any deposits. Suchdeposit increases have occurreddespite proposal involving the confiscation of savings deposits a reductioninloans andinvestments of theNewYork of this country for any purpose. C it y banks. In the last statement week of January, “Furthermore, anyone circulating rumors of this e x c essreservesinNewYorkbanksreceded$30,000,000 character is acting against the weKare of the nation.” fromthelevel reachedonJanuary21. M on ey In M a r k e t in J a n u a r y v ie w MONTHLY REVIEW, FEBRUARY 1, 1942 10 toanewhighforrecentyears. Thiswasareflectionof t xcess (over Treasury withdrawals) of war loan Thetotalloansandinvestmentsofthereportingmem he e sitsbeingestablishedonthebooksof thebanksby ber banks showedanet decline of $82,000,000 for the rdeeapso onof newGovernment securitiespurchased. four weeks endedJanuary21. Commercial, industrial, A s theaccompanyingdiagramindicates, expansionof andagricultural loansdeclinedat theyearend, andin the first threeweeks of January showedlittle change, loans and investments of the reporting banks during withthe result that onJanuary 21, suchloans were 1941wasconsiderablygreaterthantheriseinadjusted $63,000,000 belowthe peak figure whichwas reached demanddepositsduringtheperiod, whereasin1939and onDecember24. Loanstobrokersanddealersinsecuri 1940 the expansionof demanddeposits hadbeencon ties were reduced $88,000,000 during the four week siderablyinexcess of theincreaseinloans andinvest period, andtherewerescatteredreductions, aggregating ments. In1939and1940, expansionofdepositsresulting $92,000,000, inothertypesofloans. Partlyoffsettingthe fromthe expansioninloans andinvestments was en total decline ($243,000,000) inloans, investment hold hancedtoalargeextent bydepositsresultingfromthe ings of thebanks rose$161,000,000. This increase re gold inflowmovement which exceeded reductions in flectedariseof $188,000,000inTreasurybillholdingsof depositscausedbytheincreaseincurrencycirculation. thebanks; Chicagobanksincreasedtheirholdingsofbills In1941, however, thedeclineinthegoldinflowmove by$126,000,000asthreeof thefournewissuessoldin ment to relatively small proportions removed a large Januarymatureshortly after April 1, whenthere are element contributing to the rise in deposits, and the special taxpurpose demands for Treasury bills inthe acceleratedincreaseinthevolumeof currencyoutstand Chicagoarea, andNewYorkCitybanksincreasedtheir ing involved withdrawals fromthe banks of a large holdingsof billsby$79,000,000. Othertypesof United amount of deposits. The consequence has been that, States Government securities showed diverse changes, sinceaboutthemiddleof 1941, thevolumeof adjusted largelyreflectingtherefinancingof Treasurynotes due demand deposits has tendedto remainstationary. In March 15, 1942, and of several issues of Government fact, suchdepositsinNewYorkCitybankshavedeclined guaranteedsecurities, withanissueof Treasurybonds. substantiallyduringthatperiod, reflectinglargelyanet Onbalance the aggregate holdings of Treasury notes, outflowof funds to other areas, but deposits inother Treasurybonds, andGovernment guaranteedsecurities reportingbankshaveincreasedcorrespondingly. Another factor accountingfor thedivergencebetweenthemove declinedbyanetamount of $22,000,000. entof loansandinvestmentsanddemanddepositshas Adjusted demand deposits of the reporting banks m b e duringthefirst threeweeksof Januaryrecoveredpart enthe large rise inGovernment deposits, especially of thedeclineof thelast threeweeksof December, but sincethemiddleof 1941. at $24,426,000,000 remained $256,000,000 below the Reflectingtheacceleratedriseinloansandinvestments December 10 peak. Time deposits declinedfurther in of thereportingbanksduringthepastyearandthefac thefourweekperiodandonJanuary21were$220,000,- torswhichhaveretardedthegrowthof demanddeposits, 000 belowthe highest figure of 1941. Government totalloansandinvestmentsonJanuary21wereapproxi depositsinthereportingbanksrose$144,000,000further mately$4,500,000,000higherthanonthecorresponding dateayearago, whileadjusteddemanddepositsshowed B IL L IO N S anincrease of only $1,500,000,000. As comparedwith January, 1939, loans and investments nowshowan increaseof$8,800,000,000, anddemanddepositsariseof $8,300,000,000, whereasat this timeayear agotherise in loans and investments over the 1939 level was $4,200,000,000andtheriseinadjusteddemanddeposits was$6,800,000,000. C h a n g e s in M e m b e r B a n k C r e d it a n d D e p o s it s OF DOLLARS Money Rates in New York Jan. 31, 1941 Dec. 31, 1941 Jan. 31, 1942 Stock Exchange call loans....................... Stock Exchange 90 day loans................. Prime commercial paper— 4 to 6 months Bills— 90 day unindorsed......................... Yield on % 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 buy ing rate for 90 day indorsed bills......... Loans and Investments, and A djusted Demand Deposits o f Reporting Member Banks in 101 Cities * Nominal. f Negative yield. 1 *1 U X -H % 1 1 y t-y * % Vs % 0.59 0 .58 0 .49 0.80 1.02 0.9 4 2.17 2.07 2.10 2 .40 2 .37 t 0.310J 0.231 1 1 1 y* % 76 day issue. Vl M FEDERAL RESERVE BANK OF NEW YORK 11 notesmaturingMarch15, 1942, the3per cent Federal G S FarmMortgage Corporation bonds of 1942-47, called TheGovernmentsecuritymarketduringJanuarywas fo demptiononJanuary15, 1942, the2% per cent characterizedbydivergenttendenciesamongthevarious erderrea l FarmMortgage Corporationbonds of 1942-47, maturityandtaxfeaturegroups. Theaverageyieldon F c a lle d fo rredemptiononMarch1, 1942, andthe%Per longtermpartiallytaxexemptTreasurybondsdeclined centReco nstructionFinanceCorporationnotesmaturing fromtheDecember highof 2.05 per cent (reachedon January1 , 1942. Subscriptionstotaled$1,014,000,000. the26thand27thof that month) to 1.97 per cent on Thenew25p rcentbonds, datedJanuary15, 1942, were January10butthenmovedirregularlyupwardtocancel quotedimmeed iatelyafter theofferingat apremiumof entirelythisdeclinebytheendofthemonth. Quotations about half ap int. At theendof themonththenew forthesepartiallytaxexemptbondswereaffectedinthe issue, sharingoin general firming of the taxable latter part of the monthby apprehensionconcerning issues, waspricedatthe 1 0 0 15/16bid. rumorsofpossiblemodificationoftheirtaxstatus. The average yield on long termtaxable Treasury bonds, onthe other hand, fell from2.42 per cent on December 26-27 to 2.35 per cent onJanuary 28 and heldaroundthislatterlevel until theendof themonth. Followingabrief extensionof theriseof thelastfew This divergency between taxable and partially tax days of December, the stock market during January exempt issuesalsoexistedamongtheintermediateterm ovedindecisivelywithinacomparativelynarrowprice bonds. The yields onthe tax exempt issues showed a m nge, reflectingthevaryingfortunes of warandreac slight net increase for the month, while the yields on tria o ns to the plans for amorevigorous prosecutionof thetaxableissuesgenerallymovedlower. thewar. Reversinganirregularthreemonthdowntrend, DuringthemonthyieldsonthreetofiveyearTreasury theStandard90stockpriceindexadvancedabout 8% notes continued the irregular decline in effect since percentbetweenDecember29 (whenthe1941lowwas December 10 and 11. The yield on the tax exempt equalled) andJanuary5, mostoftheadvanceoccurring % percent TreasurynotedueMarch15, 1945 reached onDecember30. Aportionof thisgainwaslostinsub 0.43percentonJanuary27(lowestsinceOctober, 1941), sequent sessionsinJanuarywhenquotationsfluctuated or0.29percentbelowtheDecemberhigh. ForJanuary narrowlyat slightlylowerlevels. The indexshoweda asawholetheyieldonthisissuewasdown0.09percent. net advance for thefull monthof only l1/^ per cent. TheaverageyieldonthreetofiveyeartaxableTreasury Railroadstocks madeafar better showingthaneither notes alsoreturnedtolevels prevailingwell beforethe industrial orutilitysharesduringJanuary, presumably Pearl Harbor attack, andshowedanet declineof 0.08 inreflectionof the comparatively favorable operating outlookandadvantageous taxpositionof therailroads. percentforthemonth. evolumeoftradinginshareslistedontheNewYork EachofthefourweeklyissuesofTreasurybillsduring Tth ockExchangeduringJanuarywasthesmallest since Januarywasintheamount of $150,000,000. TheJanu S ary 7 issue replaced a $100,000,000 maturity, was lastAugust. awardedat anaveragerateof 0.304per cent (slightly Prices of domestic corporatebonds firmedsomewhat belowtherateontheissueof December31, 1941), and inJanuary. Theaveragepriceof highgradecorporate was of 71 dayterm. This maturity, like those onthe bonds, rated Aaa by Moody’s Investors Service, by twoprecedingissues inDecember, was chosensothat January6hadmovedup% of apoint fromthe1941 thesebills wouldmature duringtheperiodof heaviest lowonDecember31. Slightlylowerlevelspredominated incometax collections inMarchandoffset inpart the thereafter but for the monthof January there was a consequent drain onbank reserves. The January 14 net gainof % of apoint. Recoveringfromthedipin issueof 91 daybills replaceda$100,000,000 maturity December, mediumgradecorporatebonds, asmeasured andwasawardedat anaveragerateof 0.119 per cent, by Moody’s index of Baa bonds, advanced1% points whiletheJanuary21 issue of 91 daybills replaceda betweenDecember 31 andJanuary 13 toalevel only $150,000,000 maturity andwas awarded at 0.196 per about % of apoint belowthe 1941 highattainedlast cent. Themajorportionof thesetwolatter issues was November. Thesebondsshowedonlyminorpricechanges apparentlypurchasedinthe ChicagoDistrict inorder laterinJanuary. Alargepart of thenet gainof 1% to provide temporary investments for bank deposits points for themonthas awholewas accountedfor by which otherwise would be subject to taxes levied on thepersistentstrengthinmediumgraderailbondswhich April 1by State andmunicipal authorities. The final gained3%pointsontheaverageduringthemonth. Treasurybill issueof themonth, datedJanuary28and he average price of prime municipal bonds moved of 91 daymaturity, replaceda$150,000,000 issue and upT wardtemporarilyinmid-January, buttowardtheend wasawardedatanaverageyieldof 0.231percent. of themonthmunicipal bondswereunderpressurefol Infurtheranceof itspolicyof refinancingguaranteed lowing official intimations that legislation would be debt of theFederal agencieswithdirect Treasuryobli sought to make income fromoutstanding, as well as gations, the Treasury on January 12 offered taxable future, issuesof Stateandmunicipal securities subject 2percent Treasurybondsof 1949-51inexchangefora toFederal incometaxes. Asaconsequence, theaverage total of $1,076,000,000 of outstanding Treasury notes yieldonprimemunicipal bonds, whichonJanuary21 andagency issues whichwould shortly fall due. The haddeclinedto2.28percent, returnedonJanuary28to issuestoberefinancedwerethe1%per cent Treasury thelevel of 2.37percentprevailingamonthago. overnment e c u r it ie s S e c u r ity M a r k e ts MONTHLY REVIEW, FEBRUARY 1, 1942 12 widest movement occurred in the free rate for the V ezuelanbolivar, whichadvanced70 points further DuringJanuary, thevolumeof corporateandmunici toen $ 720. ThefreeratefortheArgentinepesorecov pal newfinancingrosefromtheextremelylowlevel of ered0.2 somewhat fromthereactionthat occurredinthe thepreviousmonthto$276,000,000, thehighestmonthly latter part of December, but, closing the month at total sincelastsummer. Corporateflotationsaggregated $ 0.2360, it neverthelessremainedconsiderablybelowthe $157,000,000, of whichslightlylessthanonehalf repre December12highof $0.2405. Afterholdingaroundpar sentedfunds to be employed as newcapital. Owing formostof themonth, theCubanpesowent toaslight chieflytoanewissueof $50,000,000 Cityof NewYork premiuminterms of the United States dollar inthe serial bonds, theaggregate of newcapital obtainedby latterpart of January. Statesandmunicipalities, at $88,000,000, exceededthat The only noteworthy development in European ex foranyofthelasttwelvemonths. changes occurredinthe Swiss franc. AlthoughSwiss Thelargercorporateflotations—$80,000,000Alabama bankscontinuedtosupplySwiss francs against dollars Power Company bonds, $26,600,000 United Aircraft at a rate equivalent to $0.2331 for certain types of Corporationpreferredstock, and$15,000,000UnionOil transactions, an increased demand developed in this Company of California debentures—were reported to market forSwissfrancswhichcouldbeusedfreelyfor havebeenwellreceivedbyinvestors. Anissueof222,243 all purposes. While, under normal conditions, this sharesof commonstock($100par) wasofferedbythe demand would not be considered large, the virtual NewEnglandTelephoneandTelegraphCompanytoits absenceof anysupplyintheNewYorkmarket of this stockholders throughwarrants whichexpiredJanuary typeof Swissexchange (theso-calledfreeSwissfranc) 15. Asabout65percentofthiscompany’scapitalstock resultedinarapidrise intheNewYorkrate, which isownedbyitsparentconcern,theAmericanTelephone reachedahighof $0.2550onJanuary24. Asubsequent andTelegraphCompany,only35percent, or$7,800,000, reaction, however, brought the so-called free rate to oftheaggregateproceedsfromthissalewasincludedin $0.2520 by the endof the month. There was alsoan the month’s total. Temporary financing, not included increaseddemandforthePortugueseescudo, whichwas inthe $276,000,000 total, amountedto $158,000,000, a reflectedin a gradual decline inthe buying rate for largepart of whichwas accountedfor by $84,000,000 dollarsinPortugal; thisrateisnowreportedtobe24.55 of short termnotes of local housing authorities and escudos tothedollar ($0.0407 per escudo), as against $45,000,000ofFederal IntermediateCreditBankdeben 24.95 escudos ($0.0401 per escudo) uptoJanuary21. tures. Following the freezing of Philippine assets in this Forthcomingissuesinclude$35,900,000Pennsylvania cou tryasaresultoftheenemyoccupationofimportant ElectricCompanybondsandpreferredstock,$25,000,000 partn s f thePhilippineIslands, arigidcontrol wasim PanhandleEasternPipeLineCompanybondsandpre posedo o erPhilippinesecuritiesandallPhilippinepaper ferredstock,bothofwhichwillbeofferedatcompetitive currencv y withintheUnitedStates. Inordertodestroy sales, and$25,000,000 CommonwealthEdisonCompany anypossib le“blackmarket’9intheUnitedStates for of Chicagobonds, whichwill probablybesoldprivately. looted Philip pine currency which might be smuggled OfficialsoftheCityofDetroitandofMilwaukeeCounty, into the coun all dealings in Philippine currency Wisconsin,arereportedtohavecompletedplansfornew wereprohibitetdrya,nd it wasrequiredthat all Philippine issues of $29,000,000 and$11,000,000, respectively. currencywithinthe UnitedStates be depositedonor before February 1 inblockedcurrency accounts with either adomesticbankor theNewYorkOfficeof the PhilippineNational Bank. Atthesametime, thePhilip Suchforeignexchangetransactionsascontinuetogo pineGovernmentissuedanoticetoall holdersofPhilip throughtheNewYorkmarketwereagainlimitedlargely pinesecurities andcurrency, directingsuchholders in to Western Hemisphere currencies during the past all countries except enemy countries to deposit their month. Theunofficial discount ontheCanadiandollar, holdings withbanks andforwardaregistrationreport after wideningto 14% per cent inthe latter part of throughtheirbanktotheNewYorkOfficeofthePhilip December, presumably as a result of year-end opera pineNational Bank. tions, quicklyrecoveredduringtheearlypartofJanuary toreach11percentonJanuary9. Thisrecoveryaccom paniedunconfirmedmarket rumors that the Canadian dollarwouldbebroughttoparwithUnitedStatescur TheenlargedwarprogramoutlinedbythePresident rency. At the endof themonth, the Canadiandollar inhismessagetotheCongressnecessitatesamuchgreater wasquotedatadiscountof11%percentintheunofficial diversionofrawmaterialsfromciviliantowarusesthan market. heretofore, andcallsforarapidlyincreasingconversion Renewedstrengthhas alsobeenshowninanumber ofavailableplantsandtoolstothewareffort. Asapart of Latin American exchanges in recent weeks. The ofthisprogramdrasticstepsweretakenduringJanuary N ew F in a n c in g F o r e ig n E x c h a n g e s P r o d u c tio n and T rade 13 FEDERAL RESERVE BANK OF NEW YORK leadingtotheconversionof theautomobileindustryto afull wartimebasis. Acompletebanwasplacedonthe retail saleof newpassengercars andtrucksuntil Feb ruary2, pendingtheestablishmentofarationingsystem. Inaddition, thepreviouslyestablishedquotaforpassen gercarproductionforJanuarywasdoubledinorderto permitmanufacturerstouseupfabricatedparts,butpro ductionof passengercarsandlight truckswasordered stoppeduponcompletionof thisnewquota. Lateinthe monththeW. P. B. announcedthat betweenfiftyand sixtyindustrieswerebeingstudiedfromthestandpoint of over-all conversiontowarproduction. Further official orders were issued during January whicheither curtailedorprohibitedtheuseof certain essential rawmaterials inthe manufacture of awide varietyof civiliangoods. Thelist of suchmaterialsin cludedaluminum,lead, mercury, nickel, tin, wool, rub ber, andlatex. Frominformationnowavailableitappearsthatthere wasduringJanuaryacontinuationof recenttendencies inindustrial operations. Warproductionmountedhigh er, but output of nondefenseindustrieswas againheld backbyofficiallimitationsuponproductionandfurther diversionsofmaterial tomeetwarneeds. Althoughstill hamperedbyshortages of scrap, steel operations again heldwithinafewpercentagepoints of ratedcapacity. Incompletefiguresindicatethatcarloadingsofmerchan diseandmiscellaneousfreightfell offtoagreaterextent thanusual inJanuary, but that themovement of bulk freight increasedsomewhat. After adjustment for sea sonal factors, electricpowerproductionappearstohave continuedupwardinJanuary. MILLIONS OF NET TONS <oo---80 60 la 40 20 1914 ’ 16 ’ 18 ’20 ’22 '2 4 ’2 6 *2 8 ’ 3 0 '3 2 ’3 4 ’36 '3 8 '4 0 A nnu al Production o f Steel in the U n ited S tates departmentstores, varietychainsystems, andpassenger cardealerswereconsiderablylower thaninNovember, althoughmail order house sales werewell maintained. Inaddition, railwaycarloadingsofbulkfreight (repre sentedinthe index of primary distribution) declined considerablymorethanusual. In 1941 steel production in this country was at a recordhighof approximately83,000,000nettons, asthe accompanying chart indicates. Output last year was nearly 25 per cent higher thanin1940 (the previous record), athirdgreater thanin1929, andtwo-thirds abovethat in1917, thepeakyear for steel production duringtheWorldWar. During 1941 steel mill opera tions averaged97%per cent of capacity, as compared P T D InDecemberthisbank’sseasonallyadjustedindexof with82percentin1940and91percentin1917. productionandtrade declinedto110 per cent of esti mated long termtrend, a point belowthe figure for November, but eight points above that for December, 1940. During1941theindexrangedfromalowof 103 inJanuarytoapeakof 114inAugust. Thebehavior of theindexduringthelastfivemonthsof theyearwas determined largely by fluctuations in the volume of retail trade, inasmuchas productive activityshoweda gradual risingtendency. DuringDecemberthedivergenttendenciesbetweenthe output of producers’ and consumers’ durable goods, notedinrecent months, becameevenmorepronounced. Activitymountedhigherinkeywarindustries suchas steel, aircraft, shipbuilding, andmachinery, resultingin afurtheradvanceintheproducers’ durablegoodscom ponent. On the other hand, drastic curtailment of output, especially of passenger automobiles, caused a sharpreductionintheindexofproductionofconsumers’ durablegoods. Outputofnondurablegoodsintheaggre gate, was not much changed between November and December. Thedeclineintheindexof productionandtradein December was due principally to the failure of retail trade in general to rise as sharply as in most other years. After adjustment for seasonal factors, sales by r o d u c t io n a n d r ad e i n ecem ber 1941 1940 Dec. Oct. Nov. Dec. (100 = estimated long term trend) Index of Production and Trade................ 102 108 lllp IlOp Production.................................................. 105 116 117p 117p Producers’ goods— total...................... Producers’ durable goods............... Producers’ nondurable goods........ 109 110 108 128 138 118 129p 139 p 120p 131p 144p 119p Consumers’ goods— total.................... Consumers’ durable goods............. Consumers’ nondurable goods. . . . 102 91 105 103 95 105 103p 90 p 107p lOlp 76 p 109p Durable goods— total.......................... Nondurable goods— total................... 103 106 125 111 124p 112p 123p 113p Primary distribution................................ Distribution to consumer....................... Miscellaneous services................ : .......... 95 101 96 104 94 103 107p lOlp 106p 105p 98p 107p 101 109 110 111 116 126 127p 60 89 69 90 70 95 Indexes of Production and Trade Cost of Living, Bureau of Labor Statistics (100 = 1935-39 average)............................ Wage Rates (100 = 1926 average).................................. Velocity of Demand Deposits * (100 = 1935-39 average) New York City.............................................. Outside New York C ity.............................. 64 93 V Preliminary. * Adjusted for seasonal variation. These series have been revised and the base period changed from 1 9 1 9 -2 5 = 100 to 1935-39 = 100. Tabulations of back data available upon request. MONTHLY REVIEW, FEBRUARY 1, 1942 14 6.50centsapoundinNewYork, ascomparedwiththe v luntaryagreementof5.85centsestablishedlastspring. Influencedbytheexceptions madeinfavor of farm To h etals Reserve Company will pay an additional pricesinthepricecontrol bill (signedbythePresident 5 ceenM t s poundinthe case of copper, and2% cents onJanuary30), andtosomeextentbyupwardrevisions morethaa n eceilingpriceinthecaseof leadandzinc, inceilingprices for certaincommodities, quotations in for productth io nof thesematerials inexcess of the1941 wholesalecommoditymarketsrosefurtherduringJanu volume. Upw dadjustments inprices of some petro ary. The Bureau of Labor statistics comprehensive leumproductsarw repermittedduringJanuarytocom weeklyindexof wholesaleprices advancedabout 2per pensatefortheaded xpenseinvolvedinrailtransporta centbetweenDecember27andJanuary17, toanewhigh tion. Bunker fueledoe il, usedtires andtire retreading since1929, andremainedclosetothatlevelinthefollow material, slabzinc, andn wmachinetools wereamong ingweek. Farmprices showedanaverage increase of thearticlesplacedunderce e gpricesduringthemonth. 5percentduringthefourweeksendedJanuary24, but The accompanyingchartilin , b onthe Bureauof movedloweraftertheSecretaryof Agriculture’sstate Labor Statistics index, indicataessedaurp i s f 10 per cent mentonJanuary28concerningthedesirabilityof hold inthe cost of living during 1941, toetho e highest level ing near to parity the prices of commodities inlarge inover10years. Duringthefirst half of th eyearfood supply. p r ic e s w e r e t h e d o m in a t in g f a c t o r i n a d v a n gliving Oneof themost striking advances of themonthoc costs, accountingfor about threefourths ofctin herisein curredintheprice of spot cotton. The average price thecompositeindex. Duringthesecondhalf, risingprices at10Southernmarketsrose2}i centsbetweenDecember forotheritems, particularlyclothingandhousefurnish 31andJanuary27to20.11 cents apound, thehighest ings, contributedtoamuchlargerextenttotheadvance. in over 12 years, but subsequently declined to 19.25 centsonJanuary31. Higherceilingpriceswereestab lishedbytheOfficeof PriceAdministrationduringthe monthforcertaintypes of cottonyarnandgraygoods neededbytheArmy, forrawwool, wool topsandyarn, andwool floor coverings. In announcing larger 1942 goals for farmoutput, theDepartment of Agriculture guaranteedfarmersminimumpricestostimulateproduc tion,especiallyof oil-bearingcrops. Norestrictionswere placedoncaneandbeet sugar acreageandtheceilings onbothrawandrefinedsugar wereraised. Allotment of sugartowholesalers, jobbers, andindustrial usersin Februarywill beat 80percent of theFebruary, 1941 level. Prices of some nonagricultural materials were also raisedduringJanuarywiththeconsent of theOfficeof Price Administration. In order to stimulate increased outputin1942, aceilingwasplacedonprimaryleadat The dailyrate at whichcontracts were awardedfor constructionpurposesinthe37EasternStates covered inthemonthlyreport of theF. W. Dodge Corporation declined further during December, and was slightly belowthefigureforDecember, 1940. Despitethesharpdeclinewhichoccurredduringthe last four months of theyear, the total volume of con tracts awardedin1941 was 50 per cent greater than in1940 andonly 9 per cent belowthe recordhighof 1928. Publicexpendituresfor defenseconstruction, the primary factor inthe large rise over 1940, accounted for almost 40percent of all contracts awardedduring theyear. Nondefense public constructionshowedlittle changebetween1940and1941, andawardsfor private constructionwereup14percent. Ofthemajortypesofconstruction,byfarthesharpest increasewasinindustrial building. Asindicatedinthe accompanyingchart, awardsofthisclassinthe37States reachedatotalof$1,200,000,000during1941, morethan C o m m o d i t y P r ic e s United States Bureau of Labor Statistics Weekly Indexes of Wholesale Commodity Prices Percentage change Jan. 24, Index 1942 compared with January 24, 1942 .'1926 = 100) Dec. 27, 1941 Aug. 26, 1939 Farm products............................................ 100.3 93.6 92.7 96.5 115.7 109.5 102.7 103.6 78.9 88.1 + 5 .0 + 2 .6 + 1.3 + 5 .2 + 0 .1 + 1 .3 + 0 .4 + 0 .2 — 0 .1 + 0 .8 + 6 4 .2 + 4 0 .3 + 3 7 .5 + 3 0 .1 + 2 4 .9 + 2 2 .1 + 1 8 .0 + 1 0 .8 + 7 .8 + 2 0 .5 All commodities................................. 95.5 + 1.8 + 2 7 .7 Raw materials............................................ Semimanufactured articles...................... Manufactured products........................... 95.5 91.8 96.3 + 3 .2 + 1 .8 + 1 .2 + 4 4 .3 + 2 3 .4 + 2 1 .4 Textile products........................................ Chemicals and allied products............... Hides and leather products.................... Building materials..................................... Housefurnishing goods............................. Metals and metal products..................... Fuel and lighting materials..................... Miscellaneous.............................................. B u ild in g PtR CENT C ost o f Living: in the U n ited S ta tes (B u reau o f L abor S ta tistic s d a ta ; m on th ly figures prior to Septem ber, 1 9 4 0 , obtained by interpolation) 15 FEDERAL RESERVE BANK OF NEW YORK StateduringDecember, andBuffalowastheonlylocality to report a net loss in employment. In the Utica, Rochester, andAlbany-Schenectady-Troy areas inpar ticular, workingforces expandedinline withgrowing production in war industries. All industrial districts reportedsizablegainsinbothemployment andpayrolls fromtheprecedingDecember. MILLIONS OF DOLLARS <500 1250 1000 New York State Employment by Industrial Areas 750 Percentage change, Dec., 1941 compared with 500 Albany— Schenectady— T ro y ................ Utica............................................................ Rochester.................................................... Buffalo......................................................... Syracuse...................................................... New York City......................................... Binghamton— Endicott— Johnson City 250 ’ 25 Contracts Awarded in 37 States for Industrial Building (F. W . Dodge Corporation data) Dec., 1940 August, 1939 +36 +29 +2 2 +22 +22 +18 +1 1 +85 +64 +33 +78 +84 +3 7 +15 +22 New York State............................ +51 twoandonehalf timesasgreat asin1940, seventimes the average for the 1930-39 decade, andabout double Factoryemployment intheUnitedStates as awhole thepeakyears of thetwenties. Overhalf of theindus decreasedslightly further during December, but pay trial buildingcontractsawardedinthe37Statesduring rolls rose 3per cent inthe sameperiod, reflecting an 1941werefordefenseplantsownedandfinancedbythe evengreater increase inaverage weekly earnings. Al Federal Government. Contracts for manufacturing thoughworkingforcesatplantsproducingwarmaterials buildingsintheautomobileandaircraft, chemical, iron continuedtoexpand, thesegainswereoffsetbyseasonal andsteel, andmetal workingindustries accountedfor layoffs inmany industries, andbydrastic curtailment morethan50percent of theyear’saggregate. In1940 inthenumber of workers employedat automobile fac thesegroupsmadeupabout onethirdof thetotal, and toriesandotherconsumers’ durablegoodsplants. Com paredwithDecember, 1940, manufacturingemployment in1939lessthanonequarter. InNewYorkStateandNorthernNewJersey, where was 15per cent greater andpayrolls were39per cent the effect of the defense programhas not been so larger. For 1941 as awhole, therewas anincreasein markedas insome other regions, the volume of con average workingforces of 19 per cent over 1940, and struction awards increasedabout 25 per cent between wage payments for the year rose 41 per cent above 1940and1941. Contractsawardedforresidential build thepreviousyear’slevel. ingandalsoforheavyengineeringconstructionremained As shown in the accompanying chart, the rise in at about the1940levels, but awards for nonresidential factorypayrolls hasreflectedincreases inbothemploy buildingroseby about twothirds, owingprimarily to m nt andaverage weekly earnings. Betweenthe out the constructionandexpansionof industrial buildings bre e of warinEuropeandJuly, 1940, at thestart of tohandledefenseproduction. Duringtheyearthelargest theak N a ional defense program, gains in both factors relativeincreasesforthisdistrictoccurredintheUpstate werecotm parativelysmall andpayrolls roseless than8 NewYork area rather thaninthe MetropolitanNew YorkandNorthernNewJerseyregion. PER CENT 180 E m p lo y m e n t a n d P a y r o lls 160 EMPLOYME NT /P A Y R O L LS /zd 80 > „ \ S' 140 pt i ii ii TherewasaslightgainbetweenNovemberandDecem ber in employment at NewYork State factories, as 120 increases in working forces of war industries offset seasonal lossesinmanyotherlines. Payrolls rose4per 100 cent during the month, presumably reflecting inpart lengthening working hours. Large employment gains werealmost entirelyrestrictedtoplantsproducingfire arms, tanks, airplanes, ships, andother war materials. Cannerieslaidoffworkersowingtoseasonal curtailment ofoperations, asdidallbranchesoftheapparelindustry except women’s coat, suit, and dress firms. Factory employment as awhole was 22% per cent above the December, 1940level, andpayrolls were45%per cent greater. According to the NewYork State Department of Labor, payrolls increasedinall industrial areas of the ----- - ^ ^ ^ A V E R A C 1939 30 -----------------------; e w e e k l y e a r n in g s JL ,.... 1940 i i 1941 t 20 Indexes o f F a ctory E m p lo ym en t and P ayrolls in the U nited S ta tes, and A v era g e W e e k ly E a rn in gs o f Fa ctory W o rk e rs (B u reau of Labor S tatistics data plotted on ratio scale; base period o f indexes is 1 9 2 3 -1 9 2 5 a verage) MONTHLY REVIEW, FEBRUARY 1, 1942 16 percent. However, inlinewiththeaccelerationof pro duction, workingforces wereincreased30per cent be tweenthe inception of the defense programand our entryintothewar, andweeklyearningsroseevenmore rapidly, withtheresultthatfactorypayrollsinDecember werealmostthree-quarterslargerthaninJuly, 1940. In recent months the advance in employment has been checked,whileweeklyearnings, whichreflectlengthening workinghoursandrisingwageratesandovertimepay ments, havetendedtocontinueupwards. The number of workers engaged in all civil non agricultural occupations rose200,000 duringDecember toatotal ofapproximately41,000,000persons, according totheBureauofLaborStatistics. Thegainwaslargely duetoseasonal additionstoworkingforcesinwholesale andretail trade establishments andinthe number of civilianGovernmentemployees, whichwerepartiallyoff setbysmallerthanusual declinesinmanufacturingand constructionemployment. During the year 1941, nonagricultural working forces are estimatedto have in creasedbyapproximately2,800,000persons. According to the United States Bureau of Labor Statistics estimates, employees incivil nonagricultural pursuitsinNewYorkStatetotaled4,280,000inDecem ber, againof 40,000 fromNovember, andof 270,000 fromDecember, 1940. These figures do not include employers, casual workers, or domestic servants, esti matesforwhichareincludedinthetotalforthecountry asawhole. andaveragedailysalesforthisportionof Januaryde clinedconsiderablyless thanusual fromtheDecember level. As indicated in the accompanying chart, sales duringJanuarythisyearweresubstantiallyhigherthan ineitherJanuary, 1940or 1941, andrepresentedmuch largeryear-to-yeargainsthanineitherofthetwoprevi ousmonths. InDecember, salesof thereportingdepartmentstores inthisDistrictwere10percenthigherthaninDecember, 1940, butthedailyrateof salesfailedtoshowquiteall oftheusuallargeseasonalgainovertheNovemberlevel. Substantial year-to-year gains during December were reportedinsales of domestics, sheetings, towels, major householdappliances, radios, andgroceriesandmeat. Fortheyear1941, salesof thereportingdepartment storesinthisDistrictwere13percent higherthanfor theyear1940, comparedwithanincreaseof 5percent between1939and1940. Retail stocks of merchandise onhandinthedepart ment storesat theendof Decembercontinuedsubstan tiallyhigherthanayearprevious, althoughthedecline fromNovemberwassomewhatmorethanusuallyoccurs. Returnsfromalimitednumberof department storesin this District indicate that outstanding orders for mer chandisepuchasedbythestores, but not yet delivered, wereabout63percenthigherthanattheendofDecem ber, 1940, alargerincreaseoverayearpreviousthanin OctoberorNovember. Percentage changes from a year ago D e p a r tm e n t S to r e T r a d e During January, sales of the reporting department storesinthisDistrictshowedunusuallylargepercentage gainsoverlastyear, asactual orthreatenedshortagesof certain articles, together with the prospect of higher prices, resultedin aheavy buying wave that affected many lines of goods, includingblankets, sheets, pillow cases, drugs, housefurnishings, rubbergoods, hosiery,and men’sclothing. ForthethreeweeksendedJanuary24, sales of thereportingdepartment stores wereabout 33 percent higherthaninthecorresponding1941 period, Net sales Department stores December, 1941 Jan. through Dec., 1941 + 7 4-12 b ll -13 -17 -13 -15 -16 1-12 4-25 +39 +20 +17 +20 +18 +35 +19 +20 +31 4-16 +10 +13 +12 +20 +25 +12 +14 +18 +14 +2 3 +30 +2 1 +12 +23 +24 +34 +20 +24 +19 +16 New York City.......................................... Northern New Jersey............................... Newark......................................... .......... 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............................................ PER CENT Western New York State........................ Niagara Falls.......................................... W / A ^ V\ H\ \ l\ \ \ \ 194. 1 -4 2 n \ \ \ ' \ 1 +35 +4i +42 +4 1 +25 +3i +3 7 +27 +25 All department stores.................. 4-10 +13 +29 Apparel stores............................... 4- 5 + 9 +24 Indexes of Department Store Sales and Stocks, Second Federal Reserve District (1923-25 average = 100) \ \ / A i A . A J1 — / 1^51^1940—41 1940 Sales (average daily), unadjusted................. Sales (average daily), seasonally adjusted.. DECEMBER JANUARY W eekly Sales o f Reporting Department Stores in the Second Federal Reserve District, not Adjusted for Seasonal Variation (1935-1939 average = 1 0 0 per cent; data plotted on ratio scale) +2 7 +32 +32 +25 +34 +29 \ ^ 1939-- 4 0 NOVEMBER Stock on hand end of month December, 1941 Stocks, unadjusted............................................ Stocks, seasonally adjusted............................ r Revised. 1941 Dec. Oct. Nov. Dec. 184 102 112 98 130 109 194 107 128 113 132 111 105 107 86r 88r M ONTHLY R E V IE W of Credit and Business Conditions Federal Reserve Bank of New York February1, 1942 The Quickest, Surest Way You Can Help Win This War B u y Defense Bonds U n ited States Savings B on d s Thelarge increase inthe volume of sales of United States Savings Bonds, whichbeganimmediately after thePearlHarborattack,gainedfurtherimpetusinJanu ary. Sales of Series EDefense Savings Bonds for the period January 1-29 in the Second Federal Reserve District totaled$126,200,000, ascomparedwithsalesof $65,400,000inDecember, whichindicatesarateof sales for themonthasawholeat least doubletheexpanded volume of December, andmany times the volume in months prior to December. These data include sales reportedbyall qualifiedissuingagenciesotherthanpost offices, andsales bythe Federal Reserve Bank. As a roughindicationof thenumber of individuals inthis DistrictwhoparticipatedduringJanuaryintheDefense Savings Bondprogram,therewere 1,103,454 Series E bondsissuedbytheseagentsduringthefirst29daysof January; insomecases, of course, morethanonebond wasissuedtooneindividual. Ofthistotal, 441,827bonds of the $25 maturity value denominationwere issued, 210,584 of the $50 denomination, 295,973 of the $100 denomination, 75,004 of the $500 denomination, and 80,066ofthe$1,000denomination. It shouldnot be forecast that the January rate of sales will bemaintainedinFebruary andimmediately following months, as many of the larger subscribers purchasedinJanuarythemaximumamounts theyare permitted to buy during the year. Nevertheless, the numerous additions tothelist of companies inwhich payroll savingsplansaremaintained, toregularizepur chases of Savings Bonds, suggests the continuance in future monthsof ahighrate of sales, whichwill gain furthermomentumassaleseffortsareintensified. Salesof SeriesFandGSavingsBondsalsoincreased greatlyinJanuarytoanaggregate for thetwoseries of $115,300,000 for the first 29 days of the month, as comparedwithatotal of $63,500,000forDecember, and $112,100,000forMay, 1941—thepreviousrecordmonth, MILLiONS Of DOLLARS Sales 1941 1942 o f U nited S tates S a v in g s B onds in th e Second F ederal R eserve D istric t b y A ll A g en cies, E x clu d in g P o s t Offices (D a ta for January, 1 9 4 2 are for first 2 9 da ys o f th e m on th ) whentheseissues first went onsale. Thetotal of sales of the F and Gseries of bonds was probably more affected, thanwas the total of sales of the Series E DefenseSavings Bonds, bypurchasesmadeinthefirst monthoftheyearofthewholeamountofanissuewhich maybeacquiredinanyonecalendaryearbyoneindi vidualoraccount. For the country as awhole, the daily statement of theUnitedStates Treasuryshowed$908,000,000 of re ceiptsfromthesaleof UnitedStates Savings Bondsof all issuesduringthefirst 27daysof January. Receipts fromthis source for the month of December were $536,000,000. Salesof SeriesFandGbondsareusually heavyduringtheclosingdays of themonth, andsuch sales, together with further sales of Series E bonds, seemtoassureatotal volume of Savings Bonds of all types of more than $1,000,000,000 for the month of January. Becauseof thelargeincreaseinSavings Bondsales, ithasbecomedesirable,sofaraspracticable, todecentral ize the work of issuing Defense Savings Bonds and thereby facilitate prompt delivery to purchasers. The Federal ReserveBankof NewYork, asFiscal Agent of the United States, acting under authorization of the Secretaryof theTreasury, will nowreceiveapplications fromcorporations, andfromthe chief fiscal officer of anyStateorof anycountyormunicipality, whichhave payroll savings plans inoperation, for designationas issuingagentsforthesaleof SeriesEDefenseSavings Bonds. Considering the probable volume of sales of bonds, itisbelievedthat, forthetimebeing, suchdesig nationiswarrantedonlyforapplicantshavingapproxi mately1,000employeesormore. Issuingagentssodesig natedmaysellbondsnotonlytoemployeesparticipating inpayroll savingsplans, but alsotothegeneral public andtoemployeesmakingintermittent purchases. Upon request, thisbankwill furnishcompleteinformationto anyeligible corporation, State, county, ormunicipality whichmaywishtoconsiderapplyingfordesignationas issuingagentforthesaleofDefenseSavingsBonds, The riseinthevolume of currencyheldbythe publictoalargervolumethaneverbefore—anamount apparently inexcess of that requiredfor carrying onthetradeof thecountry—suggeststhat thereisa substantialamountofdollarsbeingheldinhoardsby thepublicthatcould, withadvantagetotheholders andtothe country, be investedinDefense Savings Bonds. Nowthatthecountryisatwarall resources should be offered to the service of the country. Patriotismdemandsthatidlecurrencyshouldbeput towork. Moneyheldinhoardsoutsidethebanking systemrepresentsawastedresource,atatimewhenall resourcesareneededtopromotethewareffort. The individualholdingidlecurrencycanhelpinwinning thewar, withbenefit tohimself, byinvestingsuch currencyinDefenseSavingsBonds. MONTHLY REVIEW, FEBRUARY 1, 1942 General Business and Financial Conditions in the United States (Summarized by the Board o f Governors o f the Federal Reserve System) N D U STRIAL activity declined less than seasonally in December and the first half o f January, retail trade continued in large volume, and prices o f many commodities rose further. I Index o f P h ysical V o lu m e o f 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 s 1 0 0 per cen t) Index o f T o ta l L o adin gs o f R evenue F reig h t, A d ju ste d for Seasonal V ariation ( 1 9 3 5 -3 9 a v e r a g e ^ 1 0 0 per c en t; m iscellaneous, coal, and all other car loadings expressed in term s o f p o in ts in total index) A A , OTKIE.R COMMC>DITIE£ A /■'V' , V\ A A \J a/ Indexes of W h o le sa le Prices Com piled b y U nited S ta tes B ureau o f L abor S ta tistic s (1 9 2 6 averagers 1 0 0 per cen t) A "...... \ /V TREASURY NOTES * n ...... v u TREASlJRY BILLS ____ A— '935 1936 1937 1938 (939 w 1940 Money Rates in New Y ork City Commodity P rices Wholesale commodity prices increased sharply when this country entered the war early in December and then showed little change during the latter half o f the month. In the first half of January prices again advanced, the principal increases being in agricultural commodities and chemicals. Federal action to impose maximum prices was accelerated with the outbreak o f war and applied on a wider scale to industrial products. Ceilings were extended to products in later stages o f production and distribution and in most instances covered consumers9 goods. Certain o f the actions, like those relating to rubber and wool products, were associated with new Federal production restrictions. In this period also there were advances in a number o f price ceilings established earlier. B ank Credit Total loans and investments o f banks in leading cities, which had advanced sharply during the first half o f December, have subsequently shown little further change. Treasury financing in the middle o f December and heavy currency with drawals during the holiday season absorbed close to 700 million dollars of excess reserves during the month. About 500 million o f this was recovered in the first half of January, as the result o f a decline in Treasury deposits at the Reserve Banks and a return o f currency from circulation. Recent changes in excess reserves have been almost entirely at banks outside New York City. EASURY BOiNDS " "" 1 k D istribution Volume o f retail trade, which had been large during most o f the autumn, increased less than seasonally in December. This reflected to some extent a temporary slackening in sales around the middle o f the month following this country9s entry into the war. In the first half o f January sales at department stores showed less than the customary sharp reduction from the Christmas buying peak and were at a level substantially higher in comparison with a year ago than that prevailing in other recent months. Freight car loadings o f most products decreased by less than the customary seasonal amount in December. Coal shipments declined considerably in the latter part o f the month but then increased sharply in the first half o f January. Shipments o f miscellaneous freight, which includes most manufac tured products, were maintained in large volume for this season o f the year. J J f f" V TOTAL^ i 1 w y *s u |w FARM L , PRODUCTS P roduction In December total volume o f industrial output declined less than is usual at this season and the B oard’s adjusted index rose further to 168 per cent o f the 1935-1939 average. In the armament industries output continued to advance and at machinery plants activity rose sharply, following little change in November. Output o f materials, such as iron and steel and nonferrous metals, continued at peak levels and lumber production showed less than the usual seasonal decrease. Automobile production declined sharply in the latter half o f December, following announcement o f sharp reductions in passenger car quotas, but early in January quotas for that month were increased and output rose considerably. Sales o f new automobiles to civilians were halted at the beginning o f January pending the establishment o f a rationing system. Textile production declined somewhat in December owing to a reduction in activity at cotton mills from the record level reached in November. Output o f wool and rayon textiles was sustained at about capacity. Output o f manu factured food products and shoe production showed about the customary seasonal declines. Coal output decreased somewhat in December, while petro leum production and mining o f nonferrous metals were maintained at the high November rate. Value o f construction contracts awarded in December declined less than is usual at this time o f year, according to figures o f the F. W. Dodge Corpora tion. Awards for public projects showed little change, while those for residential construction declined less than seasonally following a considerable reduction in November. 1 1941 U nited S tates Government Security P rices Prices o f Government securities were steady in the first half o f January, following a decline in December after the entry o f the United States into the war.
@FedFRASER