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M ONTHLY

R E V IE W

of Credit and Business Conditions
Second Federal Reserve District

F d ra Rs rv B n ,N wY rk
e e l ee e a k e o
M o n e y M a r k e t in D e c e m b e r

Te c ag int e Uit d Sae f o ant n a
h hne h n e t t s r m aio t
paet ant na wr o Dcme 7 , 14, hd
ec o aio t a, n ee br -8 91 a
o lyalime ef c o t emnymr e a dineet
n
it d fet n h oe akt n t rs
r t s Tes okfe b t eGvr mn s c r ymr e,
ae. h hc lt y h oen e t euit akt
fo ea p , cu ntb cmae whit rat na
r xmle o ld o e o prd it s ecio t
t eo t ra o t eEr pa wrinSpe br 13.
h ubek f h uo en a e t me, 99
( e t ec agsi Tes r bn picsaes o nin
Rlaiv hne n rauy o d r e r hw
t ec atwi hapaso pg 3 O a t edmsi
h hr hc per n ae ). f ll h o etc
f a c l mr es t esokmr e a n s o e mr
innia akt, h t c akt loe hwd oe
t a amdrt rat n adpics o sok, a ed
hn oeae ecio , n r e f t c s lray
dpesdb ya-e d“t xs le’ 9 a dt epopc o
e rse y er n a a s n h r s et f
sillhg e t xs rahdnw wsne13.
t i hr ae, ec e e lo s i c 95
I t epr dbt enDcme 6a dDcme 2 ,
n h eio ewe ee br n ee br 6
t e aeae y ld o lo g t r Tes r bns rs
h vr g ie n n em r auy od oe
aot Y t 3 6 o oepr cn, wi Tes r nt
bu s o /1 f n e e t hle r auy oe
y ld rs o ly0 3 t 0 7 pr cn a dt eaeae
ie s oe n .0 o .0 e e t n h vrg
r t o we lyi s e o Tes r b rs b alik
ae n ek sus f r auy ills oe y e
a o n. Tes a rs inr t so s ot t r Gvr ­
mut h mll i e ae n hr em oen
mn sc r ie inDcme ms b cni ee , hw
e t euit s ee br ut e osdrd o ­
ee, in t e lig t o a pee in i ces aeain
vr h h f rcd g nrae vr g g
ao n * pr cn fr mt e lo lee o t e ya
r ud 4 e e t o h w vls f h er
rcr e inSpe bra dOt br Rt so Nw ok
eodd e t me n coe. ae f e Yr
Cybnsfo lon t pimc so es mt r gwh
it ak r as o r e ut mr, auin it in
aya, hv s o nn uwr t ne c, a dbnes
e r ae hw o p ad e dny n akr
acpac r t s hv be uc a gd Oe mr e
cet ne ae ae en nhne . pn akt
cmeca ppr hs be s ld a % pr cn
o mri l a e a en o t -% e e t
rcnly rpee t g o ly af at nl c ag int e
ee t , e rs nin n r cio a hne h
qoaio f o t epeio sle e o Y Per cn.
ut t n r mh rv u vl f 2
et

Ja u ry1 9 2
n a ,1 4
rqirmns Telags f co int ei ces inr­
e u e e t. h r et at r h nrae e
sreblacswsant gino f n st r uhf r ig
ev a ne a e a f u d ho g oe n
acut d bre e t, wi haerf ce int eie
con is usmns hc r elet d h t m
“foe nacut a dgldt a s cio s9 int eacm
r ig co n n o r nat n’
h co ­
pnin d ga s o i gt e pinipl mvmns o
a y g iar m hw h r c a oe e t f
n
f nsaf cin rsr ebla cso bnsint eScn
u d fet g eev a ne f ak h eod
Fdr l Rsr e D t ic sne t e bg n g o 14.
e ea eev isr t i c h einin f 91
Teef r ig acut ds usmnso acut o wr
hs oe n con i bre e t n con f a
prhssint isc ut y inet e t o dlla blacs
uc ae h o nr , vsmn f o r a ne
i Gvr mn sc r ie, adohrt a s cio s wi h
n oen e t euit s n t e r nat n, hc
d et o inir cly af ce mme bn rsr e,
ir cly r d et fet d e br a k eevs
a one t $ 5 ,0 0 0 bt en Nvme 5 a d
mut d o 2 0 0 ,0 0 ewe oe br n
Dcme 2. Tisf uede ntinluet a seso
ee br 4 h ig r os o c d r nf r f
dlla blacsinoer akdgldwic d ntaf c
o r a ne t amr e o , h h id o fet
bn rsre.
ak eevs
Tenx ms imot n inluneo Nw okbn
h et ot pra t f e c n e Yr ak
rsre wsantgino ao n $ 0 ,0 0 0 o f ns
eevs a e a f r ud 1 0 0 ,0 0 f ud
t r uhTes r ta s cio sfo t epr dNvme
ho g r auy r nat n r h eio oe br
5 ee br 2. Tis ginoc re ds ielag py
-Dcme 4 h a curd ept r e a­
mnst t eTes r int ewe e ddDcme 1,
e t o h r auy h ek ne ee br 7
d r gwi hwe py e twsmd fo t enwad
uin hc ek amn a ae r h e n
a d io a i s e o Tes r bnso Dcme 1 ad
dit nl sus f r auy od n ee br 5 n
lag a o nso q at r i cm t xcllet n wr
r e mut f urely no e a o cio s ee
md. Teloso rsr efu d dr gt a we ws
ae h s f eev ns uin ht ek a
lime b t efat t a bns int is D t ic e ce
it d y h c ht ak h isr t let d
t pyfo 5 prcn o t enw r auybnsa te
o a r 5 e e t f h e Te s r od llot d
int isD t ic b t ebo ce itmt o, wic rs lt
h isr t y h ok rd ehd h h eus
inn ime i t da o rsre o t ebns Wh
o mdae r in n eevs f h ak. it ­
da a f o t ebnso s c ce it blo g gt t e
r wls r mh ak f uh rd s e nin o h

M ember B a n k R eserve P osition

Te r laiv sa ilit o mnyr t s int ef c o
h e t e t b y f oe ae h ae f
wrdvlomnsmyb at ib t b , a les inpr,
a ee p e t a e tr ua le t at at
t t efat t a inNwYr C yt eat a dc n in
o h c ht e ok it h cul eli e
ecs rsr e o m br bns d r g Dcme i
xes eevs f e e ak uin ee br n
m
t e pr d u t Crsms ws les t a hd be
h eio p o hi t a a s hn a en
a t ipt d O t e Dcme 2 sae e t dt t e
nic ae . n h ee br 4 t t mn ae h
ecs a one t $ 3 ,0 0 0 , a cmae wh
xes mut d o 9 5 0 ,0 0 s o prd it
t e lo o $ 7 ,0 0 0 rahdo Nvme 5 ad
h w f 7 5 0 ,0 0 ec e n oe br , n
$ ,1 0 0 ,0 0 o Dcme 3 Te lo et sae e t
1 3 ,0 0 0 n ee br . h ws t t mn
dt f ueinDcme wsrahdo t e1t we
ae ig r ee br a ec e n h 7h hn
ecs rsre a one t $ 9 ,0 0 0 , a do n dy
xes eevs mut d o 8 0 0 ,0 0 n n o a
in Dcme d t e ecs do blo $ 5 ,0 0 0 .
ee br id h xes r p e w 8 0 0 ,0 0
Ter eo $ 6 ,0 0 0 inecs rsre fo t epro
h is f 1 0 0 ,0 0 xes eevs r h ei d
bt enNvme 5 a dDcme 2 rf ce ant
ewe oe br n ee br 4 elet d e
i ces o ao t$ 0 ,0 0 0 inm brbn bla cs
nrae f bu 2 0 0 ,0 0 e e a k a ne,
m
ao toefift o wi hwsas r e b ars inrsre
bu n h f hc a bobd y i e eev




Principal F actors A ccou n tin g for M ovem e n ts o f Funds Into and O ut
o f R eserve Balances of M em ber B an ks in Second Federal R eserve
D istrict (C u m u lative since January 1, 1 9 4 1 ; ( 4 - ) = g a i n to
reserve balances, ( — ) = l o s s to reserve balan ces)

2

MONTHLY REVIEW, JANUARY 1, 1942

Tes r aemd o lyao t a fat a t e Tes r rsr e bla cs a d a i ces o mr t a
r auy r ae n bu s s s h rauy eev a ne n n nrae f oe hn
ds ussf nsf o it blacsint eRsreBns $ 0 ,0 0 0 inrsrerqi e e t, wi hacma i d
i bre u d r m s a ne h eev a k, 2 0 0 ,0 0 eev e urmns hc co pne
r e nrae oen e t e oit h o m
r
a dt u hv litleef c o t eageaersre o alag i ces inGvr mn dps sint ecme­
n hs ae t fet n h grgt eevs f
a bns int ecut ya huht e myaf c t e c lbnsa dsmrs inpivt dpst. Tepinipl
ll ak h o nr lt o g hy a fet h ia ak n o e i e r ae e ois h r c a
rsr e o pric la bns I Ot br we ecs inlune o m br bn rsre d r g t e pr d
eevs f at u r ak. n coe hn xes f e c n e e ak eevs uin h eio
m
rsre wr ao n $ ,7 0 0 ,0 0inNwYr Cy wsa i ces o $ 0 ,0 0 0 i t ea o n o mny
eevs ee r ud 1 0 ,0 0 0
e ok it , a nnrae f 8 3 0 ,0 0 n h mut f oe
a poimt ly3 prcn o t enw r auyis es ld inc c laio , a ecpio a lag i ces ee fo
pr x ae 5 e e t f h e Tes r su o
iru t n n xe t nlly r e nrae vn r
int a mnhwspidfo b t ebo ce it mt o. asao o t eya we as bt nia i ces inc c ­
ht o t a a r y h ok rd ehd esn f h er hn usa t l nrae iru
Bns inohr prs o t e c ut y wic hldrla laio i epce . Hwvr t is da o rsre ws
a k t e at f h o nr , h h o e ­ t n s xet d o ee, h r in n eevs a
t e mr ecs rsre t a NwYr bns i cut r a ne t alag et n b ant a d io o
ivly oe xes eevs hn e ok a k, n o nebla cd o r e xe t y e dit n f
t eageaepidfo o ly3 prcn o t eDcme rsrefu d t r uhohrf cos t epinipl oe
h grgt a r n 2 e e t f h ee br eev n s ho g t e at r, h r c a ns
a t e t o Tes r bnsb t ebo ce itmhd bin ardci no naly$ 0 ,0 0 0 innn e br
llomns f r auy od y h ok rd e o. e g e uto f er 4 0 0 ,0 0 omme
t
A a d io a f co o cni ealeimot net nin dpst adohrFdr lRsreacut (piniplly
n dit nl at r f osdrb pra c e d g e ois n t e e ea eev cons r c a
t mina acm ralersreps io inNw ok t e dc n in foe n dpst a t e Rsr e Bns
o a t in o f t b eev oit n e Yr h eli e r ig e ois t h eev a k
o
Cybns hsbe a i ces inTes r ds us­ peio s mnio e ), a da i ces o $ 9 ,0 0 0
it ak a en n nrae r auy i bre rv uly e t nd n n nrae f 1 2 0 ,0 0
h mut f e ea eev lot usa d g
mnsint eNw okae,a pr nlyrf cin lagly int ea on o Fdr l Rsr ef a o tt nin (a
e t h e Yr ra pae t elet g r e
py e t o df necnr cs SneAg s t e t n uul dvlomn ao n Cr t a, det cnet n
amns n ee s o tat. i c uut h e ­ s a ee p e t r ud hisms u o o gsio
h a ), n n nrae f 5 ,0 0 0
h
dnyfo Nw okt l s f nsinTes r oeai n, int e mils a d a i ces o $ 9 0 ,0 0 in t e
e c r e Yr ooe u d r auy pr to s
wi hws t p a o t e f s hlf o 1 4, hs be Fdr lRsres c r yprfo . Ds it lag f cu­
hc a y ic l f h irt a f 91 a en e ea eev euit ot lio ep e r e lut a
rvre .
eesd
t n inTes r dpst int eRsreBns t ent
io s rauy e ois h eev a k, h e
n
Aohr f co wi hhs t ne t i ces ecs ef c fo t epro wsm o.
nt e at r hc a e dd o nrae xes fet r h ei d a i r
rsre inNwYr hs be prhss o Gvr ­
eevs e ok a en uc ae f oen
mnsc r i sb t eFdr lRsreBnsudrdrc
e t euite y h e ea eev a k, ne i e­
t no t eOe Mr e Cmit e Sc oeai n in
io f h pn akt o m e. uh pr to s
t
t epro bt ent isc u t y e tac i t t ewr
h ei d ewe h o nr ’s nrne no h a
1
1
1
*Y-1 *M nx
1t/ 1
K
a dDcme 2 a one t $ 9 0 ,0 0 Tisa on
n ee br 4 mut d o 5 ,0 0 0 . h mut
x-y*
iso lyaot oesvnho t eprhsso sc r ie
n bu n ee t f h uc ae f euit s
A
A
%
md fo RsreBn acut inSpe br 13, o
ae r eev a k con e t me, 99 n
t eot ra o wrinEr p.
h ubek f a uo e
12
.0
Te mvmn o cmeca a d f a c l f ns
h oe e t f o mri l n innia ud
bt enNw oka dt ers o t ecut yhsbe
ewe e Yr n h et f h o nr a en
s b c t szb we lys ins b to blac as a
ujet o i ale ek w g, u n a ne mll
nt gino fu d t NwYr rs lt dfo t epr d
e a f n s o e ok eue r h eio
Nvme 5 ee br 2. A t e bto lin int e
oe br -Dcme 4 s h ot m e h
1
1
d ga i d ae, t e mvmn o cmec l ad
iar m nict s h oe e t f o mria n
y
*
f a c l f ns ( t e t a bn fu d) bt enNw
innia u d ohr hn ak n s ewe e
Yr a dt ers o t ecut yhs sailizdint e
ok n h et f h o nr a t b e h
t Negative yield.
pr d sne Ot br Te mvmn o bn f ns
eio i c coe. h oe e t f ak u d
ina do t o NwYr a o sailizdint e pr d
n u f e ok ls t b e h eio
M
B
C
t r uhDcme 1, a a i ces int edpst o Dr g t e fv wes e ddDcme 2 t e t t l
ho g ee br 7 s n nrae h e ois f
e
br
Ci ao bns whNwYr bns sr e t ofe o lon a dinismnko newe lyr prin heoe
hcg ak it e ok ak evd o fst f uinnh v e e t ft e eee e ot4gmma
as
et s h k
whr wlso f nsb ohrbns I t ewe e dd bns inrae $ 3 ,0 0 0 fut e t rah a nw
it da a f u d y t e ak. n h ek ne ak cesd 6 7 0 ,0 0 rhr o ec br
Dcme 2, hwvr t eewsawhr wl o oe h hf ueo $ 0 9 ,0 0 0 . I cessinhld g ef
ee br 4 o ee, hr a it da a f vr ig
0
o
$ 2 ,0 0 0 o o t f o n bn dps s fr mNw vr u ct gr3 ,2f3 n,0 0t ns Geen e tinsr
1 5 0 ,0 0 f u-o-t w a k e oit o e aioig r ef ie o Uit dSaeravr mn sc o
sa os
e t o
eui­
Yr C ybns
ok it ak.
te acut dfo $ 7 ,0 0 0 o t et t l i ces i
i s co ne r 4 7 0 ,0 0 f h oa nrae n
Telags as r t no bn rsre inNwYr e e
h r et bopio f ak eevs e ok m
e , n a is
d
o mri ds
u
oc re t r uh a i ces o $ 9 ,0 0 0 in t e t iabrda kclt itlaa sacut dfo eca 0 ,0 0
curd ho g n nrae f 1 0 0 ,0 0 h ml, a bnicrda lon r e incm $ 6l, in0 ­
r n ar u u
g
r
co ne r 1 0 0 .
,0
a o n o c re c o tt nin in t e svn wes t e t p o a s n vs e t s o e inr
mut f urny usa d g h ee ek
s
d
e ddDcme 2. Frt eya 14 t r uhDcm Oar swshf loeaarginefmnahowr m o
ne ee br 4 o h er 91 ho g ee ­ c hg y ec int n g daeotstec ht e.
hne h
i
h ge t f e
h
br 2 , c re c a dci whr wls f o t e Nw h nraeo $ 7 0 0 in oe mn e r y
e 4 urny n on it da a r m h e
Yr RsreBn ecee dps s b s hlym e hTei ces efe4r,0g,0ak Gvcn erscuit
ok eev a k xedd e oit y lig t o o ins o t rp 7in b0 s rf re pinc a
r ld g f h ot 0 n elet d t iplly
t a $ 0 ,0 0 0 . Apoimt lyoehlfo t eecs ar e o $ 0 ,0 0 0 inhld g o Te s r bns
hn 5 0 0 ,0 0 p r x ae n a f h xes is f 4 8 0 ,0 0 o in f au o d.
whr wlsoc re int ef s s mnh o t eya Te r prin bns aqird $s,0 0 r0 o y oen
it da a curd h irt ix ot s f h er
a
0 f
a dhlf int escn hlf o t eya u t Crsms mn eo d dr gt e we e5 dDcme Gvre
n a h eod a f h e r p o hi t a. h t bot g inkhc u e n4 0 ,0e br 1, t ­
e ns u
ek d e
e
0 h
Fra mme bnsint ec ut y ecs rsre we inwi hwr ws dc rd a di cesdt e
o ll e br ak h o nr , xes eevs ek hc a a elae , n nrae hir
o $ ,0 0 0 ,0 0 o Dcme 2 s o e ardci n hld g $ 5 ,0 0 0 int ewe e ddDcme 1
f 3 6 ,0 0 0 n ee br 4 hwd e uto o ins 3 5 0 ,0 0 h ek ne ee br 7
o $ 0 ,0 0 0 f o t eDcme 3f uea dado we $ ,6 0 0 ,0 0 o 2 a d2 pr cn Tes r
f 8 0 0 ,0 0 r mh ee br ig r n rp hn 1 0 ,0 0 0 f n % e e t r auy
o $ 5 ,0 0 0 fr mh f uerahdo Nvme 5 bns wr isudb t eTe s r . Bn hld g o
f 3 0 0 ,0 0 o t e ig r ec e n oe br , od ee s e y h r auy a k o ins f
fo w gt ei ces inrsrerqi e e tpre t gs Tes r b rs a a d io a $ 1 0 ,0 0 ad
llo in h nrae eev e urmn ecnae r auy ills oe n dit nl 6 ,0 0 0 n
wi hbcm ef ci eo Nvme 1 Te dc n o hld g o Gvr mn g aa t e oligt n rs
hc ea e fetv n oe br . h eli e f o ins f oen e t ur ned b aio s oe
$ 5 ,0 0 0 fr mt epeio slo o Nvme 5ws $ 3 0 ,0 0 wile Te s r nt hld g dopd
3 0 0 ,0 0 o h rv u w f oe br a 3 ,0 0 0 h r auy oe o ins r pe
cue b adces o $ 4 ,0 0 0 inm br bn $ 5 0 ,0 0
asd y erae f 1 7 0 ,0 0 e e ak 2 ,0 0 0 .
m




Money Rates in New York

Dec. 31, 1940 Nov. 29, 1941 Dec. 31, 1941

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___

0.46

0.60

1.99

1.92

2.07

2 .24

2.40

0.267

* Nominal.

0.310$

$ 76 day issue

ember

0 .5 8

0.9 4

ank

r e d it

FEDERAL RESERVE BANK OF NEW YORK

3

I NwYr C y epnio inlon a dinet
n e ok it , xa s n a s n vs­
mns a one t o ly$ 1 0 ,0 0 int e fv wes
e t mut d o n 9 ,0 0 0 h i e ek
e dd Dcme 2, ad t e t t l rmi e sm
ne ee br 4 n h oa e and o e
­
wa blo t e Ot br h h Cmeca lon rs
ht e w h coe ig . o mri l a s oe
$ 1 0 ,0 0 f rhr ad t t l Uit d Sae Gvr ­
5 ,0 0 0 ut e, n oa n e t t s oen
mn s c r y hld g avne $ 8 0 ,0 0 a t e
e t euit o ins da cd 4 ,0 0 0 , s h
rs lt o ars o $ 5 ,0 0 0 inTes r bn hld
eu f i e f 1 4 0 ,0 0 r auy od o ­
i g ($ 2 ,0 0 0 oc rin int ewe we t enw
ns 1 0 0 ,0 0 cur g h ek hn h e
Tes r bnswr isud a dar eo $ 5 0 ,0 0
r auy od ee s e ) n is f 2 ,0 0 0
in Gvr mn g aa t e i s e, prly ofe b a
oen e t ur ned sus at fst y
dc n o $ 0 0 ,0 0 inTe s r b hld g a da
eli e f 9 ,0 0 0
r auy ill o ins n
dces o $ 1 0 ,0 0inTes r nt hld g.
erae f 4 ,0 0 0
r auy oe o ins
Ajut d dmn dpst o a rprin bns
d se e ad e ois f ll e ot g ak
rs naly$ 0 ,0 0 0 int et rewese ddDcm
oe e r 5 0 0 ,0 0 h he ek ne ee ­
br 1, t rahanwpa o $ 4 8 ,0 0 0 , b t in
e 0 o ec e ek f 2 ,6 0 0 ,0 0 u
t e s ced gt owes do pdaot $ 0 ,0 0 0 ,
h uce in w ek r pe bu 7 0 0 ,0 0
o i gt cllet no i cm t xc ek, py e t fo
w o o cio f no e a hcs amns r
n
nwGvr mn is e b bn c so es a dwh
e oen e t sus y ak ut mr, n it ­
da a fr mbn dpst o f ns int e f r o
r wls o ak e ois f u d h om f
c re c. Uit dSae Gvr mn dpst inrpr­ Dcme 4 o a a d io a $ ,0 0 0 ,0 0o t xb
urny n e t t s oen e t e ois e ot ee br , f n dit nl 1 0 ,0 0 0 f aale
in bnsnalydule int efv wese ddDcm 2 z pr cn Te s r bns o 1 6 -7 ( e t a
g ak e r o b d h i e ek ne ee ­
br2, o wic dt t e a o ne t $ ,4 0 0 ,0 0 wht e $ ,2 0r0uyi s e of fe 9 7oe idna d
e 4 n h h ae hy mut d o 1 0 ,0 0 0 ; Y e e t ,0 a 0 sod fe d Ot2 r 9 ic l
h 1
),
t ei ces rf ce c i f bo ce it py e t fo $it0 0 ,0 0 o t0a le 2 pr cn Tecuybnsn
h nrae elet d hely ok rd amns r 5 ,0 0 0 0 a ,0 0 u er r a b od o
0
f xb e t s r
f
t eTes r bn i s e int ewe e ddDcme 1. 1 5 -5 , wscnu mt ds cesu . Udrt et r s
h r auy odsus h ek ne ee br 7 9 1 5 a os mae ucsf lly ne h em
I NwYr C y a jut d dmn dpst rs f e r g
n e ok it , d se e ad e ois oe
n so ee vr d
v
fe­
ao t $ 6 ,0 0 0 bt enNvme 5adDcme e thafein,smllnwtsswrsamdayhrkn
bu 3 0 0 ,0 0 ewe oe br n ee br o t l oft e tsaa ie eericio faoe bcpeir
nia llomn n r t t n i e t e g
d
r
c
1, b t int ef llo in t oweslot a o t is r e x si s bcip n ee m sd Teof r gws
0 u h o w g w ek s ll f h is,
s
p .
rt r in t a f ue aot $ ,1 0 0 ,0 0 blo t e eeeilyevrsbcio dwrti eoenth2fein ca
eun g o ig r bu 1 0 ,0 0 0 e w h hcv vous r tibs, a mns o h %pr e t
a
e usr e llo t
e
h hrahdinMy 14. Uit dSae Gvr mn bns bin 1 pr cn o s bcipio s a dentn
ig ec e
a, 91 n e t t s oen e t od e g 5 e e t f usr t n n o h
e
dpst rs $ 4 ,0 0 0 in t e svn wes e dd 2prcn isu 1 prcn. Sbcipio sina o ns
e ois oe 4 0 0 ,0 0 h ee ek ne
e e t s e 1 e e t usr t n mut
Dcme 2, wi dmsic inebn dpst wr u t $ ,0 0 fo rg t rd bns dlivr b n ey
ee br 4 hle o et t r a k e ois ee p o 5 0 r eisee od e eale int
rdcd$ 9 ,0 0 0 .
e ue 1 0 0 ,0 0
dy a e i s ac wr a te infu Bt o t ee
as ft r sune ee llot d ll. oh f hs
i s e wr udr pes r Dcme 8t r uh1 a
sus ee ne rsue ee br ho g 1 s
G
S
t euul d t ib t npoes ws cmlict db t e
h s a isr uio rcs a o p ae y h
TeGvr mn s c r ymr e s sa e t es ok ef cs o t e e tac o t e Uit d Sae i t t e
h oen e t euit akt ut ind h hc fet f h nrne f h n e t t s no h
o t eo t ra o hsilit s whJpna dt es b wr O Dcme 3, hwvr bt i s e wr qoe
f h ubek f ot ie it a a n h u­ a. n ee br 1 o ee, oh sus ee ut d
sqe tdc r t no wraa s t ec ie Aispwr s hlyaoepr
eun elaaio f a gint h h f x o es lig t bv a.
whget rsed es t a wst e cs a t eoe ­ Tewrnw a ohda us tlin ef c o pics
it rae t ains hn a h ae t h pn
h a e s ls a n net g fet n r e
in o t e wr in Spe br 13. I de , a t e o Te s r nt s a dy ld o t eeisus sm ht
g f h a
e t me, 99 ned s h f r auy oe n ie s n hs s e o e a
w
acma yn c at inict s t e r e int e we ly et ne t e rs o Ot bra dNvme. Tey ld
co pni g hr d ae, h is h ek xe dd hir i e f coe n oe br h ie
aeaey ldo lo gt r t xee p Tes r bns o t et xee p %prcn Tes r nt deMrh
vr g ie n n ema xmt r auy od n h a xmt e e t rauy oe u ac
bt enDcme 6a d1 wsa oles t a t a a 1, 14 mvdu fr m0 0prcn o Nvme 2
ewe ee br n 3 a ls s hn ht t 5 95 oe p o .6 e e t n oe br 9
t et eo t efa o t eLwCut i s a dFa c t 0 2 pr cn o Dcme 1—h h hs lee
h im f h ll f h o o nre n r ne o .7 e e t n ee br 1 t e ig et vl
o t a t ei ces er in14, f llo in t eFdr l rahdsneAg s, 14. Sbe unly t ey ldo
r hn h nrae aly 91 o w g h e ea ec e i c uut 90 us qe t , h ie n
Rsr e Sse ’s s ei l r pr t Cnrs a d t e t is i s e dc nd a d fo t e mnh a a wo a
eev yt m pca e ot o oges n h h su eli e n r h o t s hle
rvlaio s a ao t t esm t eo t elag vlu e ntdces o 0 2prcn wsrcr e . Teaeae
ee t n t bu h a e im f h r e o m e erae f .0 e e t a eodd h vrg
o f a c gwi hwu hv t b dn b t eFdr l y ldo t e3t 5ya t xb Te s r nt sf llo e
f innin hc o ld ae o e oe y h e ea ie n h o e r aale r auy oe o wd
Gvr mn. Bt en Spe br 2 a d 2, 13 t e ar uh s ila cus, a huhantrs o 0 8pr
oen e t ewe e t me n 3 99 h o g ly im r ore lt o g e i e f .0 e
we lyaeaey ldo lo gt r pria t xee p cn wss o nfo t emnha awo .
ek vr g ie n n em at lly a xmt e t a hw r h o t s hle
Te s r bns i cesdf o 2 3 pr cn t 2 4 Acpe bd o t efv we lyi s e o Te s r
r auy od nrae r m .3 e e t o .7
ce t d i s n h i e ek sus f r auy
prc n; bt enDcme 6a d1, 14 t ewe ly b d r gDcme wr t nee o ineet bss
e e t ewe ee br n 3 91 h ek ills uin ee br ee e drd n t rs ae
aeaers o lyf o 1 7 pr cn t 1 8 prcn. inrain fr m0 4 prcn o t eDcme 3is e
vr g oe n r m .8 e e t o .9 e e t ces g o .2 2 e e t n h ee br su
Fllo in awe o litlemvmn, t eaeaey ld t 0 1 prcn ( ig et r t sneOt br2, 1 3 )
o w g ek f t oe e t h vrg ie o .3 0 e e t h hs ae i c coe 0 9 7
i cesdfut e t 2 2 pr cn fo t ewe e dd o t ei s edt dDcme 3. TeDcme 3is e
nrae rhr o .0 e e t r h ek ne n h su ae ee br 1 h ee br su
Dcme 2 . Teaeaey ldo t et olo gt r ws int ea o n o $ 0 ,0 0 0 adt efo r ohr
ee br 7 h vrg ie n h w n em a h mut f 2 0 0 ,0 0 n h u t e
t xb Tes r bnsmvdinas ila wydr g is e wr int ea o n o $ 5 ,0 0 0 . S c ec
aale r auy od oe
im r a uin sus ee h mut f 1 0 0 ,0 0 ine ah
Dcme. Sle t et bs loss fo t x pr oe rp cda$ 0 ,0 0 0 mt r y at t l o $ 0 ,0 0 0
ee br a s o sali h se r a upss e lae 1 0 0 ,0 0 auit , oa f 3 0 0 ,0 0
a dt peev a mc a psi leo t ea peiaio o “nwmny ws p t a t e Te s r ’s d ps l.
n o rsr e s uh s osb f h prc t n f e o e ” a u t h r auy is oa
o sm o t eo tt nin is e s llin a lag pe Te f s t re isus in Dcme wr o 9 dy
n o e f h usa d g sus e g t r e r ­ h irt he s e
ee br ee f 1 a
m mwr inic t dt hv be f cosint eDcm mt r y b t t eDcme 2 is ewsc tt 8 dy
i s ee d ae o ae en at r h ee ­ auit , u h ee br 4 su a u o 2 as
u
brrcsi ninpics
e eeso r e.
adt eDcme 3 i s et 7 dy. TeTe s r is
n h ee br 1 su o 6 as h r auy
Ds it cmli ai n r s lt gf o ors de e t y s ot n gt emt r ie fo t eelat ri s e a da o
ep e o pcto s eu in r m u udn nr hre in h auit s r hs te sus n ls
inot ewr t eTe s r ’spb of r g a nucd t a o t eJnay7 1 4, i s es t a t eei s e
t h a, h r auy ulic fein, none ht f h a ur , 92 su o ht hs sus
"P E R C E N T

A v era g e Yield on “ T a x E x em p t” U nited S tates T reasu ry B onds
not Callable W ith in 12 Y e a rs (Scale inverted to show
price m ovem e n t)

overnm ent




e c u r it ie s

MONTHLY REVIEW, JANUARY 1, 1942

4

w mt r o t edy o hai s i cm t xclle­
ill aue n h as f evet no e a o c
t n in Mrh 14, a d o rdmto sre a a
io s
ac , 92 n n e e pi n ev s
pria ofe t t eepce hayda o bn r­
at l fst o h xet d ev r in n ak e
sre cue b t et xclleto s It i epce t a
evs asd y h a o ci n. s xet d ht
t eTes r w a wat t l o aot $ 0 ,0 0 0 o
h r auy ill llo oa f bu 6 0 0 ,0 0 f
Te s r b t mt r a t eMrht xpr d wh
r auy ills o aue t h ac a eio , it ­
o t rp cmn.
u e lae e t
I cni une o it t x s v g p ninuuae
n o tna c f s a ains la a g r t d
latAg s, t eTe s r o Jnay1 14, i p c g
s uut h r auy n a ur , 92 s lain
o s le a ohr i s e o Tes r Tx Sv g Nt s
n a nt e su f r auy a ains oe,
Sr s Aa dB dt dJnay1 14, admt r g
eie n , ae a ur , 92 n auin
Jnay 1 14. Te nwnt s w b acpale
a ur , 94 h e oe ill e ce t b ,
dr gada e t et ir cle drmnhf o mnh
uin n ft r h h d a na ot r m ot
o prhs, a pr a dacudineet in py e t
f uc ae t a n cr e t rs
amn
o Fdr l ino ea decs poit t xs Ulik t e
f e ea cm n xes r f s ae. n e h
er r sre, t e my b pee t d in py e t o
alie ei s hy a e rsne
amn f
Fdr l et t a d g t xs a wll. Te nt s o
e ea sae n ift ae s e h oe f
bt nwei saeaa b int esm dnm ai n
oh e sre r vilale h a e e o i tos
n
a hrt f r wh t e ecpi n o t e a d io t
s eeooe it h xe to f h dit n o
Sr s A o $0 a d $ ,0 0 dnm aio s Df ne
eie f 5 0 n 1 0 e o i t n. ee s
n
Sv g sa p aet b acpe a t e f c vlu
ains t ms r o e ce t d t hir ae a e
inlie o cs a py e t fo t ee nt s I ohr
u f ah s amn r hs oe. n t e
rs et, t e Te s r Tx Sv g nt i s e, dt d
epcs h r auy a ains oe sus ae
Jnay 1 14, ae s ila t t e nt s o t e Tx
a ur , 92 r im r o h oe f h a
Sr sdt dAg s 1 1 4 ; t eSre Ai s epoi e
eie ae uut , 9 1 h ei s su r vds
art r o 1 2prcn pra nma dt eSr sB
eun f .9 e e t e nu n h eie
is eart r o 0 8 pr cn we ue inpy e t
su eun f .4 e e t hn sd amn
o a y o t e aoe mni nd t xs Te Sre A
f n f h bv e to e ae. h ei s
nt saedsg e epc llyfo t es a rt x aes
oe r ei nd s eia r h mlle apyr,
adt f a o n t a myb ue inpy e t o t xs
n h mut ht a e sd amn f ae
wh aya islime .
it in er it d
S e c u r ity

M a rk ets

I cnr s t t es apr einsok we wr in
n o tat o h hr is t c s hn a
Er p bgninSpe br 1 3 , s aepics rcdd
uo e ea e t me, 9 9 hr r e ee e
we t eUit dSae e t rdt ewrer inDcm
hn h n e t t s nee h a aly ee ­
br a huht eet n o t edc n wslest a in
e, lt o g h xe t f h eli e a s hn
My ue o 14, we lag sa liq idt n cn
a-J n f 90 hn r e cle u aio , o­
nce wh Gr a s cess in t e LwCut ie,
et d it emn ucse h o o nr s
f re afa mr ar p dc n int emr e. Sa d
ocd r oe but eli e h akt t n­
ad 9 sokpic ine do pd7 prcn bt en
r ’s 0 t c r e dx r pe % e e t ewe
Dcme 6ad9 A r awa rcvr insvr l
ee br n . fte ek eoey eea
o t e inevn gssios t eine o Dcme 1
f h t r e in es n, h dx n ee br 7
PER C E N T

rs m it t re mnh dwte d a d rahd o
eu e s he ot o nrn n ec e n
d
Dcme 2 t elo etpin sneMrh 13. Sok
ee br 3 h ws o t i c ac , 95 t c
pi e rcvrds ap int elat t ossi n o t e
rcs eoee hr ly h s w esos f h
ya, btt eine o Dcme 3 wssill4 prcn
er u h dx n ee br 1 a t % e e t
blo t elee pe a ga t ee do Nvme. Aid
e wh vl r vilin t h n f oe br s e
f o t eef cso wrnw t xs llin isrpre t
r mh fet f a e s a e g e ot d o
,
hv dpesdqoai n adi cesdt evlu eo
ae e rse ut to s n nrae h o m f
ta s cio s o t eNwYr SokEc a g dr g
r nat n n h e ok t c xhne uin
t emnh Ta in d r gDcme wst ehai s
h ot . r d g uin ee br a h evet
sneMy 14.
i c a, 90
Pics o dmsi cr oaio bns dc ndsm
r e f o etc opr t n od eli e o e
­
wa inDcme. O t e 1t t e aeae pic o
ht ee br n h 0h h vr g r e f
pim cr oae bns t oe r t d Aa b Mo y
r e opr t od, hs ae a y o d’s
I vsos Sr ic, ws 2 pins blo t e rcr lee
net r ev e a o t e w h eod vl
mina e v t a t r uhu Nvme ad fo
a t ind irully ho g o t oe br n r
svr l ssi n er in Dcme. A lee % o a
eea esos aly ee br
vl f
pin lo e ( n anwlo fo t eya) wsrahd
o t wr a d e w r h e r a ec e
o Dcme 2. Md mgae cr oae bns a
n ee br 7 e iu r d opr t o d, s
maue b Mo y’si dxo Babns b Dcme
es rd y od ne f a o d, y ee br
9hdfa n2 pinsblo t ercr h ho er
a lle % o t e w h eod ig f aly
Nvme ad2pinsblo t elee o Nvme 2.
oe br n o t e wh vl f oe br 9
Lt inDcme t eews as h rcvr . Pics
ae ee br hr a lig t eoey r e
o mn ipl bns do pd mr s ap t a cr
f uic a od r pe oe hr ly hn o­
pr t bns dr g t e e r pr o Dcme. A
oae od uin h aly at f ee br s
ar s lt t e aeae y ldfo pim mn ipl bns
eu , h vrg ie r r e uic a od
rs t 2 8 pr cn o Dcme 1, a ot o e a
oe o .3 e e t n ee br 0 lms n-hlf
prcn h hrt a t ena-rcr lo lee o Nvm
e e t ig e hn h er eod w vl f oe ­
br2, bt lae t eews sm es gint eaeae
e 6 u t r hr a o e ain h vr g
y ld
ie .
Sc r y da g inGr a , Ia n adJpns
euit elins emn t lia , n aaee
i s e wr s s e ddinein e b t eNw okSok
sus ee upne df it ly y h e Yr t c
Ec a g adt eNw okCr Ec a g o Dcm
xhne n h e Yr ub xhne n ee ­
br1. S ila ato wst knwhrgr t sc rte
e 1 im r ci n a ae it eado euii s
o svr lo t es a rAispwr lae int emnh
f eea f h mlle x o es t r h ot .
N ew

F in a n c in g

Dr gDcme, t evlu eo cr oaea dmn
uin ee br h o m f opr t n u i­
c af a c gdc ndt $ 6 ,0 0 0 , t es a s t t l
ipl innin eli e o 1 6 0 ,0 0 h mllet oa
sneSpe br 13, t ef s mnho t ewr A
i c e t me, 99 h irt ot f h a. l­
t o g us tle cnit n in t e sc r ie mr es
huh net d o d io s h euit s akt,
ais gf o t ee tac o t eUit dSae inot e
r in r mh nrne f h n e t t s t h
wr af ce t epic go nwisus o lyoemjo
a, fet d h r in f e s e, n n a r
f t t nshdle fo t e mnhws df re . Cr
loaio c e u d r h ot a eerd o­
pr t f a c ga one t $ 0 ,0 0 0 , a ot elo ­
oae innin mut d o 1 1 0 ,0 0 ls h w
etlee sneSpe br13,o wic $ 7 0 ,0 0rpe
s vl i c e t me, 99 f h h 5 ,0 0 0 e r­
sne f ns t b e p ydfo nwc p a pr oe.
e t d u d o e mloe r e a it l upss
Pe inr clc laio si d aet a cr oaefnn­
r lim ay a u t n nict ht opr t i ac
in dr g t e lat q at r o 14 aeae ao t
g uin h s ure f 91 vr gd bu
$ 4 ,0 0 0 amnh t elo et snet ef s qat r
1 4 0 ,0 0 o t , h ws i c h irt ure
o 13. O t i a o n, ao t $ 3 0 ,0 0rpee t d
f 99 f hs mut bu 8 ,0 0 0 e rsne
i s e fo nw c p a pr oe. Fr t e cle dr
sus r e a it l upss o h a na
ya a a wo , cr oae f a c g aeae ao t
er s hle opr t innin vr gd bu
$ 1 ,0 0 0 amnh o wi hnwmnyacut d
2 3 0 ,0 0 o t , f hc e o e cone
fo $ 5 0 ,0 0 Crepnin f ue fo 14 wr
r 8 ,0 0 0 . ors o d g ig rs r 90 ee
$ 3 ,0 0 0 a d$ 1 0 ,0 0 rs et e . Mr t a
2 0 0 ,0 0 n 6 ,0 0 0 , epcivly oe hn
f u f t s o t eya-t -ya i ces innwc p a
o r ifh f h e r o e r nrae e a it l
f a c g ws acut d fo b r ilr a s a d pb
innin a cone r y a od n ulic
uilit cmai s
t y o pne.
F o r e ig n E x c h a n g e s

Movement o f Stock Prices (Standard and Poor's 90 stock index;
19 26= 100 per cent)




Tee tac o t eUit dSae i t t ewrrs lt d
h nrne f h n e t t s no h a eue
inafut e c ra e t ins c f r ig ec a g t a ­
rhr ut ilmn uh oe n xhne r d

5

FEDERAL RESERVE BANK OF NEW YORK

in a hdbe inei e c int eNwYr mr e
g s a en vdne h e ok akt
dr grcn mnh. I md t lya e t eot ra
uin ee t o t s m e iae ft r h ubek
o hsilit s t eews ncsailyarlut ne o t e
f ot ie hr a ees r
e ca c n h
pr o bnst mk cmimnsee int oenur l
at f ak o ae o m e t vn hs e t a
t
Er pa c re ce cvrd b gnr l licne; in
uo en urni s oee y e ea e s s
a d io , dlasincb cm ui ai n, det cno­
dit n e y ale o mncto s u o e s r
s i , i pdd da g i Lt A eic n c re c s
hp me e elins n ain mr a urnie.
Tislat rosalet t a in, hwvr wsso lagly
h te bt c o r d g o ee, a on r e
rmvd a t e mr e bcm a jut d t wrim
e oe s h akt ea e d se o at e
cnii n.
o dto s
Dr gt ef s we o Dcme, pio t t es de
uin h irt ek f ee br r r o h udn
at c b t eJpns uo t eUit dSae, t a in
tak y h aaee pn h n e t t s r d g
int eNw okmr e hdbe gnr llyue e tu
h e Yr akt a en e ea nvnf l,
ecp fo sm dc n int ef e r t s fo bt t e
xe t r o e eli e h r e ae r oh h
Agnin ps a dt eVnz e nblivr Teoe ­
r e t e eo n h e eula o a. h pn
in o hsilit so Dcme 7a dt ecler t no
g f ot ie n ee br n h e baio f
a rlig u hlidy inms Lt A eic ncuti s
e io s o a
ot ain mr a onre
o t ef llo in dybo g t t a in int eNwYr
n h o w g a r uh r d g h e ok
mr e t av t a sa dt o Dcme 8 I m­
akt o irul t nsill n ee br . m e
d t lyf llo in t eroe in o Lt A eic nmr
iae o w g h epn g f ain mr a a­
kt, ms o t e Lt A eic n ec ags s o e
es ot f h ain mr a xhne hwd
mr e a peiaio int r s o t e dlla. Tef e
akd prc t n em f h o r h r e
r t fo t eAgnin ps nto lyrcvrda t elos
ae r h r e t e eo o n eoee ll h s
s sa e int ef s we o Dcme, btrs fut e
ut ind h irt ek f ee br u oe rhr
t anw ig o $.2 0 o Dcme 1. Sbe unly
o e h h f 0 4 5 n ee br 2 us qe t ,
hwvr t ee ws ar t e szb rat nadt i
o ee, hr a ahr i ale ecio n hs
ec ag c sdt emnha $ .2 4 , t s o antlos
xhne loe h ot t 0 3 5 o hw e s
o 4 pinsfo t emnha awo . Tefr er t fo
f 5 o t r h ot s hle h e ae r
t eVnz e nblivrrs se d t $.2 2 o Dcm
h e eula o a oe t a ily o 0 7 5 n ee ­
br1, ada huhlae rat gt $ .2 5 , it nvr
e 8 n lt o g t r ecin o 0 6 0 ee­
t e s rmindwll aoet e$ .2 8 lee pe a g
hles e a e e bv h 0 5 0 vl r vilin
a t ee do Nvme. A rhld ga $.5 7 u t
t h n f oe br fte o in t 0 2 5 nil
Dcme 1, t enno t o drt fo t eUuuyn
ee br 2 h o cnr lle ae r h r g aa
ps rs o t a dyt $ .5 1 ,a wi h vlithssne
eo oe nht a o 0 3 0 t hc lee a i c
hldfr . O Dcme 9 t eCbnps rs s hly
e i m n ee br , h ua eo oe lig t
t prwht edlla fo t ef s t einanme o
o a it h o r r h irt im
u br f
yas a db t ee do t emnht eCbnps ws
er, n y h n f h o t h ua eo a
at a a as h pe i m
cully t lig t rm .
u
Te o lymr e wans int e pinipl f r ig
h n akd ekes h r c a oe n
ec ag r t s d r g Dcme oc re in t e u ­
xhne ae uin ee br curd h n
ofca Cnda dlla, t edso n o wic w e e
fi i l a ai n o r h i cut n h h idnd
sed t 1 %prcn b Dcme 3, t elags in
t a ily o 4 e e t y ee br 0 h r et
aot nn mnh. Tis wans apas t hv
bu i e ot s h ekes per o ae
rf ce bt a usao a s c in t uis dmn
elet d oh n nes nl lak o r t e ad
bcue o t e wr a dsm ya-e d liq idt no
eas f h a n o e er n u aio f
A eic nhldCnda sc r i sa dbla cs Sm
mr a e a ai n euite n a ne. o e
rcvr wss o nhwvr o Dcme 3, we t e
eoey a hw, o ee, n ee br 1 hn h
dso n nro e t 1 prcn. A tmsdr gt e
i cut ar wd o 4 e e t t i e uin h
mnht euofca r t fo selin rs t t ey a’s
ot h nfi i l ae r t r g oe o h e r
h ho $ .0 , b ta t ee do Dcme wsqoe a
ig f 4 4 u t h n f ee br a ut d t
$ .0 3 .
4 34

cr ws rdcdt 1 4 0 uit—1 pr cn blo
as a e ue o 5,00 n s 6 e e t e w
po ut ninDcme, 14—n Jnayo t u t
r dcio
ee br 90 ad a ur upt o
1 2 0 uit , a f ue aot 7 pr cn blo t e
0 ,0 0 n s ig r bu 5 e e t e w h
nme o asmli s i Jnay 14. Frhr oe
u br f se be n a ur , 90 ut emr,
rsr t n wr imoe o po ut n ad sle o
et icio s ee psd n r dcio n a s f
r be gos fo nnse t l pr oe a d t ws
ubr od r o esnia upss n in a
p cd udr cmlee Gvr mn cnr l. Sse s
lae ne o p t oen e t o t o yt m
o pioit s ada ct n, af cin avr t o cm
f r r ie n lloaio s fet g aiey f o ­
md i s wr t he e wh t e gnr l pr oe o
oite, ee ig t nd it h e ea ups f
as r g s plie fo inut ie mnf cuin am­
suin up s r dsr s a uat r g r a
mnso esnia c ilia gos
e t r se t l iv n od.
Dt nwaa b fo Dcme i dct f rhr
aa o vilale r ee br ni ae ut e
pors i ammn po ut nadcni udc ra
r ges n r a e t r dcio n o tne ut il­
mn o o t u inohrinut ie uin sac mt r ls
e t f upt t e dsr s s g cre aeia .
O i gt t epes r o t epee t e egny mn
w o h rsue f h rsn mr e c, a y
n
sel m cni udt oeaeo CrsmsDy cn
t e ills o tne o pr t n hi t a a , o­
t ay t t e uul c so int e inut y M s le
r r o h s a ut m h d sr . ill a s
o cto ga gos epc lly fo f r ad dlivr ,
f ot n r y od, s eia r owr e ey
apa t hv be lime t sm et n b t er­
per o ae en it d o o e xe t y h e
lut ne o mnf cues t mk cmimns i
ca c f a uat rr o ae o m e t n
t
ve o lag a t ipt dGvr mn odr fo m
i w f r e nic ae oen e t r es r ili­
t r pr oe, b t cto m at it ws rpre t
ay upss u ot n ill civ y a e ot d o
hv cni uda pa lee . I cmleefg rsini­
ae o tne t ek vls no p t i ue d
ct t a r ilr a lod g o mrhni e ad m­
ae ht a od a ins f ec ads n is
cllaeu fr ig t dc ndlest a uul inDcme,
e nos e h eli e s hn s a ee br
bt t a t e mvmn o blk f e h fe of t a
u ht h oe e t f u r ig t ll f o
s m htget ret n t a inms ohryas E c
o e a rae xe t hn ot t e er. le­
w
t icpwrpo ut na t epa o t eya a i uul
r o e r dcio , t h ek f h er s s s a
inDcme, apast hv i cesdmr t a sa
ee br per o ae nrae oe hn e­
s nllyoe Nvme.
o a vr oe br
P r o d u c t io n




T rade

in

N ovem ber

PER CENT

P LG*
DREEOy
UOCS j
RD OD
AUR
B

P r o d u c tio n a n d T r a d e

A eic ninut y q ic lyfe t e ef c o t ee ­
mr a d sr u k lt h fet f h n
ta c o t is cut yinot ewr S ot a e t e
r ne f h o nr t h a. hrly ft r h
ot ra o hsilit st eD et rGnr l o t eOi e
ubek f ot ie h ir co e ea f h f c
f
o Po ut nMngmn a nucdt a oeaio s
f r dcio a ae e t none ht pr t n
int ef emjo linso wrpo ut n p ns s ip,
h iv a r e f a r dcio —la e, h s
t ns g n, ada mnto — o ldb se pdu t
a k, ns n m uii n wu e t pe p o
t e t -fo rhusadya dsvndy awe. Mv g
wny u or a n ee as ek oin
t cnev mt r ls fo wr ue t e O .M at d
o osre aeia r a s, h .P . ce
po plyt r sr tfut e t epo ut no pse gr
r mt o et ic rhr h r dcio f asne
cr a dlig tt uk. TeDcme qoafo pse gr
as n h r c s h ee br ut r asne

and

Dr gNvme t isbn ’smnh ine o po
uin oe br h a k o t ly dx f r ­
dci nadt a ers t repins t 11 pr cn o
uto n r d oe he o t o 1 e e t f
etmt dlo gt r t e d Tis f ue cmae wh
si ae n em r n. h ig r o prs it
9 inJ ly 14, a t esat o t e df nepor m
2 u , 90 t h t r f h ee s r ga ,
adwh8 inAg s, 13, jut pio t t eo t ra
n it 6 uut 99 s r r o h ubek
o t e Er pa wr Ec o t emjo sg e t o
f h uo en a. ah f h a r emns f
t e ine—r dcio , pimr d t ib t n ad d ­
h dx po ut n r ay isr uio , n is
t ib t nt cnu e—da cddr gNvme.
r uio o os m avne uin oe br
r
I t ecs o po ut n d egn t ne c s wr
n h ae f r dcio , ivr e t e dnie ee
aa s o nbt ent eo t u o poues’ drb
gin hw ewe h upt f r dcr uale
gos a dpo ut no cnu es dr b gos a
od n r dcio f o s mr’ uale od, s
t e acma y gc at inict s Cnine gin i
h co pnin hr d ae. o t ud a s n

0

\

\
cwMS
ry. /S //uoiEED
drbUR
aSG *
L OS
O
'

J
....

1

..

1

1939

1

. .j. ,_i 1,,,. ...I. 1... L_
.
. ..
1940

1941

Indexes o f Production o f P roducers' D urable Goods and C onsum ers’
D urable Goods (Fed eral R eserve B ank o f N ew Y o r k indexes,
expressed as percentages o f long term trends, and ad ju sted
for seasonal variation)

MONTHLY REVIEW, JANUARY 1, 1942

6

t e wr inut ie acut d lagly fo t e fut e
h a dsr s cone r e r h rhr
avnei t ei dxo po ut no po ues dr b
dac n h ne f r dcio f r d cr’ uale
gos wic hs mut dsed snet es r go
od, h h a o ne t a ily i c h pin f
14, wi cnu es dr b goslins wr aan
90 hle o s mr’ uale od e ee gi
a vre af ce b limaio s uo o t u a db
des ly fet d y it t n pn upt n y
mt r l s ot gs Po ut n o nnuale gos
aeia hrae. r dcio f o dr b od,
i bt t e po ues a d cnu es ct gr s in
n oh h r d cr’ n o s mr’ aeoie, ­
cesdsm ht inNvme.
rae o e a oe br
w
Cnidr g saoa f cos r t il t a e rcvrd
o s ein es nl at r, ea r d eoee
mr e ly in Nvme, f llo in t e s ap rcsi n
akd
oe br o w g h hr eeso
t a hdc aat rzdt e t o pee in mnh, bt
ht a hr cei e h w rcd g o t s u
fa d t rgin t e h hlee pe a g in Ag s.
ile o ea h ig vl r vilin
uut
Sle o dprmn soe, milodrhue, a dc an
a s f e at e t t rs a r e oss n hi
soe s se s o a sao a a jut d bs , s o e
t r yt m n es nlly d se ais hwd
,
dfnt gi s bt en Ot br a dNvme. Rt il
ei ie an ewe coe n oe br ea
s le o pse grcr aeetmt dt hv r nh hr
a s f asne as r si ae o ae u ig e
t a int epeio smnhb t s bt nia blo t e
hn h rv u o t u usa t lly e wh
lee o aya ao Fllo in t esaoa pa rahd
vl f e r g. o w g h es nl ek ec e
inOt br r ilwyf e h tafcdc e cnidr b
coe, a a r ig t rfi elind o s ealy
lest a uul i Nvme a da ar s lt t eine
s hn s a n oe br n s eu h dx
o pimr d t ib t nrs t repins
f r ay isr uio oe he o t.
1941

1940

Pivt cnt uto a dnnee s p b b ild g
r ae o sr ci n n o df ne ulic u in
cni udt s o ei e cs o cnr cio inNvm
o tne o hw vdne f o t at n oe ­
br Fr t ef s tm sneMrh 1 4 a ad fo
e. o h irt i e i c ac , 90 wr s r
pivt rs e t l b ild g do pd blo t e ya
r ae eidnia u in r pe e w h e r
er r le e a d pivt cnr cs fo nneidnia
alie vl, n r ae o tat r o rs e t l
b ild gpr oe cnine a ire u r dc n f o
u in upss o t ud n r g la eli e r m
t epa o latMy
h ek f s a .
Fo Ag s t Nvme t e vlu e o cnr cs
r m uut o oe br h o m f o t at
a addfo df nepr oe int e3 Sae do pd
wr e r ee s upss h 7 t t s r pe
mr e ly Tisdc n, hwvr a past b o at m
akd . h eli e o ee, per o e f e ­
pr r c aat r a por mfo m aycnt ut n
oay hr ce, s r ga s r ilit r o sr cio ,
df nep n epni n addf nehuin hv be
ee s la t xa so , n ee s o s g ae en
se pdu s ap a ars lto wrdvlomns Te
t pe p hr ly s eu f a ee p e t. h
Oi eo Po ut nMngmn nwetmt st a in
f c f r dcio a ae e t o si ae ht
f
14 t t l epniue fo cnt ut nw b get r
92 oa x e dt rs r o sr cio ill e rae
t a t ercr vlu eo $ 1 0 ,0 0 0 epce fo
hn h eod o m f 1 ,0 0 0 ,0 0 x et d r
14, adt a t ecm gy a’so t yw b rsr t d
91 n ht h o i e r ula ill e et ice
n
ec s e t t oepo cswi haecni ee esn
xluivly o hs r jet hc r osdrd se ­
t l t Nt nl df neo pb ha hads fey I
ia o aio a ee s r ulic elt n a t . n
Ot br t eO .Mhdetmt dt a a huhepni­
coe, h .P . a si ae ht lt o g x e d
t rsfo df necntuto wu b inrae in14,
ue r ee s o sr ci n o ld e cesd 92
t et t l vlu e o epnit rs wu fa blo t e
h oa o m f x e d ue o ld ll e w h
14 f ue
91 ig r.
N
Y
S
N
N
J
I t eNwYr a dNrhr NwJre ae, t e
n h e ok n ot en e es y ra h
dilyr t o cntut ncnr c a ad a odc e
a ae f o sr cio o t at wr s ls elind
d r gNvme, b t o i gpimr t a i ces
uin oe br u, w r aily o n nrae
n
int evlu eo Gvr mn cnr csfo df nep r
h o m f oen e t o tat r ee s u­
pss rmi e aoet ef ue fo Ag s a dSp
oe, e and bv h ig rs r uut n e ­
t me. Ahuha ad fo df necnt ut nhv
e br lt o g wr s r ee s o sr cio ae
nt be s imot n int is d t ic a insm ohr
o en o pra t h isr t s o e t e
prs o t e c ut y t e vlu e o s c cnr cs
at f h o nr , h o m f uh o tat
a addhr hs epne s ap inrcn mnh.
wr e ee a x a dd hr ly ee t o t s
I t is rg n t e df ne cnt ut n por mhs
n h eio h ee s o sr cio r ga a
be pimr cne tae o t eepnio o mn­
en r aily o cnr t d n h x a s n f a u
f cuin failit s inluin s ipad, r t e t a o
at r g c ie, c d g h yr s ahr hn n
s c po cs a a bss pwr gnr t gfailit s
uh r jet s ir ae, o e e eain c ie,
a dtraining cms I Nvme Gvr mn cnr cs
n
a p. n oe br oen e t o t at
fo df nep nsacut dfo 4 prcn o a cn
r ee s la t cone r 0 e e t f ll o­
t at a addinNwYr Sae a dNrhr Nw
r cs wr e
e ok t t n ot en e
Jre.
es y
Rs e t l b ild ga ad, wi hhdbe r nin
eidnia u in wr s hc a en un g
a ar laivlyh hr t er r in14, cni udt e
t e t e ig ae alie 91 o tne h
dc n o t epee in t omnh a ddo pdt a
eli e f h rcd g w ot s n r pe o
lee r uh 4 prcn blo t eaeaefo Nvm
vl o g ly 0 e e t e wh vr g r oe ­
br 14. A ad fo p b wr sa duilit sdc nd
e, 90 wr s r ulic ok n t ie eli e
s ap adwr ofaotoefift f o t eya er r
hr ly n ee f bu n h r mh e r alie
lee
vl.
ew

N o v.

(100

Indexes of Production and Trade*
= estim ated long te rm trend)
Index of P roduction and T ra d e .................

Producers’ goods— t o ta l..........................
Producers’ durable goods...................
Producers’ nondurable goods.............

Sept.

99

101
105
104
105
98

O ct.

N o v.

109

108p

lllp

115

116p

118p

126
135
118

128p
138 p
118p

140p
120p

103

103p
95 p
105p

103p
92p
107p

123
109

125p
lllp

126p
112p

lO lp

105p
lOOp
104p

110

101
96

D urable goods— to t a l ..............................
Nondurable goods— t o ta l.......................

91
101
100
103

D is trib u tio n to consum er............................
Miscellaneous services.................................

92
100
93

100
102

Cost o f Living, Bureau of L ab o r Statistics
(100 == 1935-39 a vera g e )...........................

100

108

109

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

115

125r

126p

Velocity of Demand Deposits*
(100 = 1919-25 average)
N ew Y o rk C it y ..............................................
Outside N ew Y o rk C it y ..............................

29
61

27
59

30
59

130p

Consumers’ nondurable goods...........

103

102p
94p

31
66

p P re lim ina ry.
r Revised.
* A d justed fo r seasonal v a ria tio n .
The indexes of p rod u ctio n and trade have been re cen tly revised, in some
cases back to January, 1935, and in other cases back to January, 1940. T a b ­
ulations of the revised indexes are available upon request.

ork

tate an d

or th ern

ew

ersey

B u ild in g

E m p lo y m e n t a n d P a y r o lls

Teewsafut e dc eint edilyr t o cn
hr a rhr elin h a ae f o­
sr cio cnr c a ad d r g Nvme acr in
t ut n o t at wr s uin oe br cod g
t t emnh rpr o t eF W DdeCr oaio
o h o t ly e ot f h . . o g opr t n
cvr gcnt ut nat it in3 EsenSae. Sne
oein o sr cio civ y 7 at r t t s i c
Ag s, we cnr cswr a addint elags vl­
uut hn o tat ee wr e h r et o
u eo rcr , t edilyr t o a ad hs fa nof
m n eod h a ae f wr s a lle f
aotoet ir . A o gt ef cosc nr uin t t is
bu n h d mn h at r o t ib t g o h
dc n aet einluneo nr a saoa mvmns
eli e r h f e c f oml es nl oe e t,
a dt eef c o t eS p lyPioit s a dA c t n
n h fet f h u p r r ie n lloaio s
Badodr ( s e inOt br r sr t gt eueo
or r e isud coe) et icin h s f
cit a mt r lst t oepo cs wi haencsay
r ic l aeia o hs r jet hc r ees r
t Nt nl df neo t t eha ha ds feyo t e
o aio a ee s r o h elt n a t f h
po le
ep .

I t easneo f rhrs bt nia a d io st wr ­
n h bec f ut e usa t l dit n o ok
in f re o df neinut ie, saoa rdcio s in
g ocs f ee s dsr s es nl e ut n
nnee s linscue s h dcessinbt e p y
o df ne e asd lig t erae oh mlo­
mn adpyo inNwYr Sae f coie d r g
e t n ar lls e ok t t at r s uin
Nvme. Wile fram a dmc inr p ns cn
oe br h i er s n ah ey la t o ­
t udt hr mr mn a p n fat r s s ipad,
ine o i e oe e , ir la e coie, h yr s
a d sel m at a s o e s a nt loss in
n t e ills cully hwd mll e se
e p y e t A ba c e o t ea prl go pla of
mlomn. ll r nhs f h pae r u id f
wr esd r gNvme a i uula t i tmo y a;
okr uin oe br s s s a t hs i e f e r
t elags e p y e t dcess oc re a wmn
h r et mlomn erae curd t o e ’s
c t in a dm ey cnen a d fu gos fr s
loh g n illinr ocr s n r od i m
.
Sao a inlune a ocue laof a cnei sa d
es nl f e cs ls asd yfs t anre n
cnen mnf cuin cnt ut nmt r ls Hw
ocr s a uat r g o sr cio aeia . o -




FEDERAL RESERVE BANK OF NEW YORK
P RC N
E ET

A I R C R A F T v '’^

u S

/

SHIP> B U IL D 1 N G X ^ ^

*MACHINE T O O L S ^ ^ g y

E LECTRICAL
APPARATUS

..........J - ........ 1

I

1

t

......... 1 .

, 1 ...

.1

1939
1940
1941
Indexes o f M a n -H o u rs o f E m p lo ym en t in Certain Industries Im por­
tant in the W a r E ffort ( 1 9 3 5 - 3 9 a v e ra g e = 1 0 0 per c e n t; data
derived from B ureau o f Labor Statistics figures w ith N o v e m ­
ber estim ated— ratio scale used to show rates o f grow th )

ee, wr in f re a awo wr 2 prcn get r
vr ok g ocs s hle ee 5 e e t rae
t a int ecrepnin mnho 14 adwg py
hn h ors o d g ot f 90 n ae a ­
mnswr 4 prcn lagr
e t ee 9 e e t r e.
Ac r in t t eSaeDprmn o Lbr t eo ly
cod g o h t t e at e t f a o, h n
inut ia d t icsint eSaet s o ntgi sinbt
d sr l isr t h t t o hw e an oh
e p y e t ad pyo d r g Nvme wr t e
mlomn n ar lls uin oe br ee h
Uic a dA a y c e et d-To aes weegi s
t a n lbn-Shnca y r y ra hr an
a p nswhdf neodr hlpdofe lossa ohr
t la t it ee s r es e e fst se t t e
f m Nt dcessinNwYr Cywr cue b
ir s e erae e ok it ee asd y
.
saoa dc nsint ea prla dcnt uto mt r l
es nl eli e h pae n o sr ci n aeia
i dsr s wi laof a mt l p ns int eBfa
nut ie, hle yfs t ea la t h uf lo
ae wr min rs o sb fo e p y e t adpy
ra ee a ly epni le r mlomn n a ­
r ll rdcio s t ee Hwvr a o t e inut ia
o e ut n hr. o ee, ll f h d sr l
d t ics rpre cni eale gi s oe Nvme,
isr t e ot d osdrb an vr oe br
14 a dee lagr i cess oe t e pe a lee
90 n vn r e nrae vr h rwr vl.
Te lags e p y e t gi s hv oc re inaes
h r et mlomn an ae curd ra
simlae b t eNt nl df nepor m P ns in
t u t d y h aio a ee s r ga . la t
wi hacleae df nepo ut nhs cue lag
hc ce r t d ee s r dcio a asd r e
inrae inwr in f re inluee cr a mc inr
cess ok g ocs c d let icl ah ey
a dr ilr a e u mnfr sint eA a y c e et dn a od qip e t i m h lbn-Shnca y
To ae, framp nsint eUic ae, a da ca
r y ra i er s la t h t a ra n ir r ft
f coie a dselm int eBfa ae. Tes a s
at r s n t e ills h uf lo ra h mllet
gin oc re int eB g a t n nic t-Jhs nCy
a s curd h inhm -Ed ot o no it
o
ae, inwi hcnu es nnualegosaet ec ie
ra hc o s mr’ o dr b od r h h f
mnf cue.
a uat rs
I t eUit dSae a awo , a inNw okSae
n h n e t t s s hle s e Yr t t ,
bt wr in f re a d pyo in mn f cuin
oh ok g ocs n ar lls
a uat r g
i dsr s dc nd s mwa d r g Nvme. Sa
nut ie eli e o e ht uin oe br e­
s nlf coscue dcesde p y e tinmn nn
o a at r asd erae mlomn a y o ­
df ne i dsr s a huhinanme o i sacs
ee s nut ie, lt o g
u br f nt ne
loss wr s a r t a uul a t is t e o ya.
se ee mlle hn s a t h im f er
Mt r l s ot gs a d c ra d o t u b mnf c
aeia hrae n ut ile upt y a ua­
t rr o cnu es dr b gos s c a pse gr
ues f o s mr’ uale od uh s asne
cr a ocnr ue t t edces inwr in f re.
as ls o t ibt d o h erae ok g ocs
Hwvr ms inut ie po uin df ne mt r ls
o ee, ot dsr s r dc g ee s aeia
cni udt e p y mr wr es d r g Nvme ;
o tne o mlo oe okr uin oe br
s ipad a da ca fat r s a uul, rpre t e
h yr s n ir r ft coie, s s a e ot d h
lags gin. Te acma y g d ga s o s t e
r et a s h co pnin iar m hw h
go t , maue b mn o r o po ut n o fo r
r w es rd y a -hus f r dcio , f u
h
o t eled gdf neinut ie dr gt elat t re
f h a in ee s dsr s uin h s he
yas Nt o lyhv wr in f re int eeinut ie
er. o n ae ok g ocs hs dsr s
be ge t e lagdb t t eaeaenme o wr ­
en r aly n r e u h vr g u br f ok
i ghus pr e p ye hs be i cesd Snet e
n or e mloe a en nrae . i c h
ot ra o wr a dmr epc llysnet ebg n g
ubek f a, n oe s eia i c h einin
o t eNt nl df nepor mmn o r o e p y
f h aio a ee s r ga , a -hus f mlo­




7

mn int ee i dsr s hv r e c nise t . Fr
e t hs nut ie ae is n o s t nly o
i sa c, t e a ca inut yhs arcr o hv g
nt ne h ir r ft d sr a eod f ain
epne at it ( es rdinmn o r) fo 2 cn
xa dd civ y maue
a -hus r 6 o­
sc t emnh, a dmn o r int is inut y hv
euiv o t s n a -hus h d sr ae
i cesds vno snet e o t ra o wr inSp
nrae ee f ld i c h ubek f a e ­
t me, 13. Peu alyt eedf nei dsr sw
e br 99 rs mb hs ee s nut ie ill
nwb epne ee fut e t me wr ne s a
o e x a dd vn rhr o et a ed, l­
t o g t e f c a go in s ac y o s ille lao
huh hy ae r w g c rit f k d br
a dinec cs t eaeaewr we isa ed s b
n ah ae h vr g ok ek lra y u­
sa t lly inecs o t e 4 hu lee
t nia
xes f h 0 o r vl.
Ac r in t Br a o Lbr Saisic etmt s
cod g o ueu f a o t t t s si ae,
t enme o pro se ggdinc il nngic lt r l
h u br f es n nae iv o ar u ua
pru sdc nd8 ,0 0d r gNvme t 4 ,7 0 0 .
us it eli e 0 0 uin oe br o 0 0 ,0 0
Tedces ws laglycue b saoa laofs a
h erae a r e asd y es nl yf t
f coie a dm e, a dint a s ot t na dpb
at r s n i s n r npraio n ulic
n
uilit at it s a huht eewr pria ofe b
t y civ ie, lt o g hs ee at lly fst y
i cessinwr in f re a wo s leadr t ilt ae
nrae ok g ocs t hlea n ea r d
et bs mns a d a cnr sao a ginin cntu­
sali h e t n otaes nl a
o sr c
t ne p y e t Cmae whNvme, 14, nn
io mlomn. o prd it oe br 90 o ­
ar u uawr in f re wr a poimt ly3 0 ,0 0
gic lt r l ok g ocs ee pr x ae ,2 0 0
get r M ayadnvl f re ( o inlue int e
rae. ilit r n aa ocs nt c dd h
aoeet ae) rs 6 ,0 0fut e inNvme t a
bv simt s oe 0 0 rhr oe br o
t t l o 2 7 ,0 0 a i ces o 1 5 ,0 0 oe aya
oa f ,0 0 0 , n nrae f ,2 0 0 vr er
peio s
rv u.
C o m m o d ity

P r ic e s

I md t lyfo w gt eot ra o hsilit swh
m e iae llo in h ubek f ot ie i
t
Jpno Dcme 7 pi e inmn o t ewo s le
a a n ee br , rcs a y f h hlea
cm oiymr esrs s ap , btlae s o e sm
o mdt akt oe hr ly u t r hwd o e
dc n a dwr r laivly sed int e scn hlf
eli e n ee e t e t a y h eod a
o t emnh Ahuht eBr a o LbrSaisic
f h o t . lt o g h ueu f a o t t t s
dilyine o 2 bsccmoit srahdapa fo
a dx f 8 ai o md ie ec e ek r
t ewrpr do Dcme 1 a 10prcn o t e
h a eio n ee br 2 t 6 e e t f h
Ag s, 13 bs, t e nt avne fo Dcme a
uut 99 ae h e dac r ee br s
awo a o ne t o lyaot2 2 prcn. Rf cin
hle mut d o n bu y e e t elet g
i sm maue t e pic cilin rg laio s wic
n o e es r h r e e g eu t n h h
hv be p t inf re a wll a t e et niv mv­
ae en u oc, s e s h xe s e oe
mnsi urg lae picswic hdoc re dr g
e t n neu t d r e h h a curd uin
t e pee i gya, t e e ta c o t eUit d Sae
h rcdn e r h nr ne f h n e t t s
inot ewrhdlessrosin ia ef cso dmsi
t h a a s ei u it l fet n o etc
cmoiymr es t a t e bg n g o t e wr in
o mdt akt hn h einin f h a
Er p in 13. Te acma y g c at s o s t e
uo e 99 h co pnin hr hw h
c re t ps io o pics o r wmt r ls a dmnurn oit n f r e f a aeia n a u
PER CEN T

M ovem e n t o f P rices o f R aw M aterials and M an u factu red P roducts
( 1 9 2 6 = 1 0 0 per c e n t; B ureau o f L a bor S ta tistic s m on th ly
indexes— D ecem ber estim ated from w eek ly indexes)

8

MONTHLY REVIEW, JANUARY 1, 1942

f coe po ut, a maue b t eBra o Lbr we e ddDcme 2, o i ginlag pr t t efat
at r d r dcs s es rd y h ueu f ao ek ne ee br 7 w
n r e at o h c
Saisic cmrhni e mnh i dxs Tee t o t a t ee ws oe mr pe hisms s o p g dy
t t t s o pe e sv o t ly nee. hs w ht hr a n oe r-Cr t a hpin a
i dxsb t es me o 14 hdlotmr t a hlf int e 14 we, mr t a ofe t e rdcio t a
nee y h u mr f 90 a s oe hn a
h 91 ek oe hn fst h e ut n ht
o t e avne d r gt e f s mnh o t ewr oc re in t e we wr ws dc rd wile s a
f hir da cs uin h irt o t s f h a, curd h ek a a elae , h mll
b t int e e s in rs—at u r mr e bt en gin wr rpre fo t e f s a dt ir wes o
u h nu g i e pric laly akd ewe a s ee e ot d r h irt n h d ek f
Fbur a dSpe br o 14—hy hv rahd t emnh Tedilyr t o s le inDcme s o e
e r ay n e t me f 91 t e ae ec e h o t . h a ae f a s ee br hwd
t eh hs lee inmr t a e vnyas Tei dx avr lag i ces oe t eNvme lee inke i g
h ig et vls oe hn lee er. h ne
ey r e nrae vr h oe br vl epn
o rw aeia picshsrahdapin aot4 pr wht euul saoa t ne c.
f a mt r l r e a ec e o t bu 0 e it h s a es nl e dny
oa oe br a s f h e ot g e at e t
cn aoe t e pe a (A g s, 1 3 ) lee a dt e Tt l Nvme s le o t e r prin dprmn
e t bv h rwr uut 9 9 vl n h
i dx o mnf cue po ut hs avne 2 pr soe int isD t ic wr ao t6prcn hg e t a
ne f a uat rd r dcs a da cd 0 e t rs h isr t ee bu e e t i hr hn
in Nvme, 14, a d a e a w g fo oe les
oe br 90 n ft r llo in r n s
cn dr gt es m pr d
e t uin h a e eio .
Wile pic i cess wr fa ly gnr l dr g s o p gdyinNvme, 14 t a int eya pe i­
h r e nrae ee ir e ea uin hpin a oe br 91 hn h er r v
Dcme, t ems po o ne gin oc re indm­ os aeaedily s le i cesdb aot 8prcn
ee br h ot r nucd a s curd o e u, vrg a a s nrae y bu e e t
s
t ar u ua po ut ; t eBra o Lbr Sais oe Nvme, 14, a davne cnidr b mr
ic gic lt r l r d cs h ueu f a o t t ­ vr oe br 90 n da cd o s ealy oe
t sdilypic ine o 7cmoii sint isgo prs t a uul oe t eOt brlee Sbt nia ya-t ic a r e dx f o mdte h r u oe hn s a vr h coe vl. usa t l e r o
6Y pr cn d r gt em t , t ale e 7 pr cn ya gin c n udt b r pre d r g Nvm r
2 e e t uin h o h o
n
vl 1 e e t er a s o t e o e e ot d uin oe b
in
e
aoet a o Ag s, 13. Pics o imot dgos fo s le o hm fun h g, wile lag rdci n
bv ht f uut 99 r e f pre od, r a s f o e r is ins h r e e uto s
a da oo inut ia rwmt r ls oe wi hmx wr rpre ins le o fus mc a icl r f igr t r,
n ls f d sr l a aeia , vr hc ai­ ee e ot d a s f r, ehn a er eaos
n
mm ut to shv be et bs e , s o e r laivly adw e adliq os
u qoai n ae en sali hd hwd e t e n i s n ur.
s h nt avne inDcme—bu 2pr cn o Rt il sok o mrhni eo hn int edpr­
lig t e da cs ee br ao t e e t n ea t c s f ec ads n a d h e at
mn soe a t ee do Nvme cni uds bt n
e t t rs t h n f oe br o tne usa ­
t eaeae
h vrg.
Oi i l ae ce dr gDcme t o anme o t llyhg e t a aya peio s a huht eavne
f ca gni s uin ee br ok u br f ia i hr hn er rv u, lt o g h dac
f
w
se s t pee t sr n uwr pic t ne ce f o oe t epeio smnh( co e) wss m hts a r
t p o rvn t o g p ad r e e dni s r m vr h rv u o t Ot br a o e a mlle
it d u br
dvloin a ar s lt o t et r o ee t int ewr t a uully oc r. Rt r s fr malime nme
ee p g s eu f h un f vns h a. hn s a cus eun o
TeCm oit Ec a g Am isr t ner int e o dprmn soe int is D t ic inict t a o t
h o md y xhne d in t aio aly h f e at e t t rs h isr t d ae ht u­
mnhakdcm oiyec agst ke t edilypic sa d godr fo mrhni eprhsdb t esoe,
ot s e o mdt xhne o ep h a r e t nin r es r ec ads uc ae y h t rs
f cut n o fuue t a in in svr l imot n bt nt yt dlivrd wr a poimt ly4 pr cn
lut aio s f t r s r d g eea pra t u o e e ee , ee pr x ae 0 e e t
po ut wh s eiie r ne. Te Oi e o Pic hg e t a a t ee do Nvme, 14, t es a s
r dcs it in pcf d a gs h f c f r e i hr hn t h n f oe br 90 h mllet
f
i e ot s
Am isr t n mvdt sailiz pics o i pre ya-t -ya gininnn mnh.
d in t aio oe o t b e r e f mot d e r o e r a
f o s adp cdcilin qoaio s o mn dm tc
od, n lae e g ut t n n a y o e i
s
fasadolss mwa blo t epe a gpic lee .
t n i o e ht e wh r vilin r e vls
Nmr u ohr mxmmqoaio s wr anucd
u eo s t e ai u ut t n ee none ,
inluin t oefo c aet s cfe, rfnds gr rw
c d g hs r igrte, of e ei e ua, a
wo wo f o cvr g, a gae o let e, nw
ol, ol lor oeins ll r ds f ahr e
at mble t e a dt bs rc i e r be, scn­
uo oi ir s n ue, elamd ubr eod
hn cto a db r pbg, r g, a drs ldir nad
ad ot n n ula as as n eo o n
sel po ut. Mnf cues o be i e ck a do
t e r dcs a uat r r f ehv oe n f
aw evr t o cnu es dr b gos wr as
id aiey f o s mr’ uale od ee lo
rqet dnt t ri e pics aoe t e c re t lee .
euse o o as r e bv h urn vls
Percentage changes from ; year ago
a

Department stores

Stock on hand
end of month

Net sales

November,
1941

Jan. through
Nov., 1941

November,
1941

+ 2
+ 5
+ 4
+ 17
+22
+10
+10
+12
+ 8
+23
+33
+20
+ 5
+2 1
+23
+35
+17
+20
+25
+14

+10
+14
+13
+21
+27
+12
+13
+18
+14
+23
+28
+22
+11
+23
+25
+34
+20
+25
+17
+15

+31
+32
+31
+31
+37
+26

+ 6

+13

+32

+

+10

+34

New York City...........................................
Northern New Jersey................................
Newark.....................................................
Westchester and Fairfield Counties.. . .
Lower Hudson River Valley...................
Poughkeepsie..........................................

United States Bureau of Labor Statistics
Weekly Indexes of Wholesale Commodity Prices
Percentage changes, Decem­
Index
ber 27, 1941 compared with
December 27,
1941
(1926 = 100) Nov. 29, 1941 Aug. 26, 1939
Farm products............................................
Foods.............................................................
Textile products......... ...............................
Hides and leather products.....................
Chemicals and allied products. . . . . . . .
Building materials.....................................
Housefurnishing goods..............................
Metals and metal products.....................
Fuel and lighting materials....................
Miscellaneous..............................................

95.5
9 1.2
9 1.5
115.6
91.7
108.1
102.3
103.4
79.0
87.4

+ 4 .8
+ 2 .2
+ 1 .0
+ 0 .2
+ 2 .2
+ 0 .7
+ 0 .4
+ 0 .1
— 0 .5
+ 0 .3

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

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

9 3.8

+ 1 .6

+ 2 5 .4

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

9 2.5
90.2
95.2

+ 2 .5
+ 0 .7
+ 1 .4

Southern New York State.......................
Western New York State.........................

+ 3 9 .7
+ 2 1 .2
+ 2 0 .1

Niagara Falls..........................................

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

1

+4i
+4i
+47
+39
+32
+32
+34
+24
+3 1

Indexes of Department Store Sales and Stocks, Second Federal Reserve District
(1923-25 average = 100)
1941

1940
Nov.

D e p a r tm e n t S to r e T r a d e

Dr gDcme, aeaedilys le o t er pr­
uin ee br vrg a a s f h e ot
in dprmn soe int isD t ic aeet ae t
g e at e t t rs h isr t r simt d o
hv inrae b ao t6prcn oe Dcme, 14.
ae cesd y bu e e t vr ee br 90
A uuullylag ya-t -ya ginins le d r gt e
n ns a r e e r o e r a a s uin h




Sept.

Oct.

Nov.

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

120
101

125
120

112
98

130
109

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

lOlr
85r

113
109

128
113

132
111

r Revised.

M O NTHLY

R E V IE W

of Credit and Business Conditions
Federal Reserve Bank of New York

The Quickest, Surest Way
You Can Help Win This War

B

u

y

Defense
Bonds




Sales o f U n ited States Savings B on d s

Fllo in t e Jpns at c o Pal Hr o adt e e tac o t eUit dSae inoa
o w g h aaee tak n e r abr n h nrne f h n e t t s t
saeo wr t eewsa i md t ads api ces int evlu e o s le o Df ne Sv g
t t f a, hr a n me iae n hr nrae h o m f a s f ee s ains
Bns Tec ag f o a‘‘df ne’’ saeo pb m dt awrpyhloyat ae hayp r
o d. h hne r m ee s t t f ulic i o a s c o g cut d ev u­
n
c ae o Sv g Bn s infat s lag wst edmn fo Sv g Bnst a s plie o ui s e
hss f ains o d; c, o r e a h e ad r ains o d ht up s f nsud
bnswr, insm css ehut d Pnin t etmwe t eBra o Egain adPinin
od ee o e ae, x a se . e d g h i e hn h ueu f nr v g n r t g
i alet pe aebnsa ar t s fice tt oet k t ec re t r t o s le, adaeut sok
s b o rpr od t ae uf i n o vrae h urn ae f a s n dqae t c s
o bnscnb p cdint ehnso isu gae t b t e Fdr l Rsre Bns t e isu g
f od a e lae h ad f s in gns y h e ea eev a k, h s in
ae t hv be rqet dt rci es bcipio s adpy e t fo Sv g Bns a dt is e
gns ae en euse o eev usr t n n amns r ains o d n o su
t moayrcipst eeo if t e aeualet mk i mdae dlivr s Rget b a is t e
e pr r ee t hr f r hy r nb o ae me i t e eie. ertale s h
i cne i net t epb cue b t et moays ot g int es p lyo bns t es ut n
novne c o h ulic asd y h e pr r hrae h up f od, h it aio
hsit big t r mr s nicn sd, int a itdnt sagaify gpt ioicef r o t epr o t e
a s r he, oe ig if a t i e ht e oe r t in ar t fot n h at f h
pb t d a mc a psi let as ti t epoeuio o t ewrt as cesu e d Sle o
ulic o o s uh s osb o sis n h r sc t n f h a o ucsf l n. a s f
Sv g Bnsinlag vlu ew d mc t a int ef a cn o t ewro as udbs .
ains o d r e o m ill o uh o id h inni g f h a n on ais
Frt epr dDcme 1t 2 inluiv, s le o Sre EDf neSv g Bnsint eScn
o h eio ee br o 9 c s e a s f ei s ee s ains o d h eod
Fdr l RsreD t ic b qaf disu gae c s i. e cmeca ads v g bns b ild g
e ea eev isr t y uliie s in gnie, ., o mri l n ains ak, u in
a dlonas c to s a dce it ui n, a db t e Fdr l Rsre Bn o NwYr , b t nt
n a soiai n, n rd no s n y h e ea eev a k f e ok u o
inluin t eps ofcs t t le $ 7 0 ,0 0 a is e pic— mc lagr a o n t a fo a y
c d g h ot fi e, oa d 5 ,5 0 0 —t su r e a uh r e mut hn r n
ohrmnhsnet eDf neSv g Bnswn o s leMy1 14. O adilyaeaebs ,
t e ot i c h ee s ains o d e t n a a , 91 n a vr g ais
s le o t ebnswr $ ,3 6 0 int ispr do Dcme, a cmae whadilyaeaeo
a s f h od ee 2 9 ,0 0 h eio f ee br s o prd it a vr g f
$ 6 ,0 0fo t emnho Nvme— mr t a t r eo inr ae a dfo t epr dsneDcm
7 2 0 r h ot f oe br a oe hn hef ld ce s ; n r h eio i c ee ­
br7t ei ces oe t epe a r t wsee lagr Tedilyaeaenme o bnsi s e i
e h nrae vr h rwr ae a vn r e. h a vr g u br f od sud n
Dcme rahd2 ,9 4 a cmae wh8 7 i Nvme. Lr e i cess oc re ins le
ee br ec e 6 3 , s o prd it ,41 n oe br ag nrae curd a s
o a dnm aio s epc llyt e$0 a d$0 dnm aio s Sm o t eprhsso Df ne
f ll e o i t n, s eia h 5 n 50 e o i t n. o e f h uc ae f ee s
n
n
Sv g BnsinDcme poalywr md fo uea Crsmsg so int epy e to yaains o d ee br r bb ee ae r s s hi t a ift r h amn f e r
e dbnss bt it i t b hpdt a t ercn acleae r t o t t l s le w b i cesd
n oue, u s o e oe ht h ee t ce r t d ae f oa a s ill e nrae
f rhr a mr a dmr pole s bci et pyo ddci np n fo t eprhs o Df ne
ut e s oe n oe ep usrb o ar ll e uto la s r h uc ae f ee s
Sv g Bns mk in ia o t ig t prhss o bns o i ces t ea onso t e peio s
ains o d, ae it l ur h uc ae f od, r nrae h mut f hir rv u
prhss
uc ae.
I a d io t t es le o Sre EDf neSv g Bns at t l o a poimt ly$ 1 0 ,0 0
n dit n o h a s f ei s ee s ains o d, oa f pr x ae 4 ,4 0 0
o Sre FadGSv g Bnswss ldi t eScn Fdr lRsr eD t ic int ef s t e t f ei s n ains o d a o n h eod e ea eev isr t h irt wny
nn dy o Dcme, a cmae wh$ 6 6 ,0 0fo t emnho Nvme. Sle o t eesre
i e as f ee br s o prd it 3 ,0 8 0 r h ot f oe br a s f hs ei s
aeuullyhaydr gt ec s gdy o amnh s t a t et t l fo t emnho Dcme
r s a ev uin h loin as f o t , o ht h oa r h ot f ee br
a awo s o ldb a peia lyget r t a fo t ef s t e t -n edy.
s hle hu e prc b rae hn r h irt wny in as
Rcips fr mt e s le o a i s e o Uit dSae Sv g Bns e t rdint e Tes r
ee t o h a f ll sus f n e t t s ains o d nee h r auy
DilySae e t fo t ef s t e t -s vndy o Dcme, a o ne t $ 3 ,0 0 0 , wi hf ue
a t t mn r h irt wny ee as f ee br mut d o 4 2 0 ,0 0 hc igr
udut d udrsi ae t e at a r t a wic s le aebi gmd, snet eei sm la
no be ly neetmt s h cul ae t h h a s r en ae i c hr s o e g
bt ent etm as lei md a dt ef nsaerf ce int eTe s r DilySae e t Hw
ewe h i e a s ae n h u d r elet d h r auy a t t mn. o ­
ee, sm inic t no t elag i ces ins le o Sv g Bnsint ecut ya awo sne
vr o e d aio f h r e nrae a s f ains o d h o nr s hle i c
t ent nwn t wri af r e b cmai o o t is f uewhs ila Te s r rci t fo
h aio e t o a s fodd y o prs n f h ig r it im r r auy eeps r
t ewo mnho Nvme, wi ha o ne t $ 3 ,0 0 0 . It isc a t a Dcme s le wr
h hle ot f oe br hc mut d o 2 8 0 ,0 0
ler ht ee br a s ee
b fa t elags fo a ymnhsnet ebnswn o s leo My1
y r h r et r n o t i c h od e t n a n a .
Vr u p n fo i ces gt epric aio o t ep b int eDf neSv g por m r
aio s la s r nrain h at ipt n f h ulic h ee s ains r ga ae
bin dvloe b t eSaeadloa Df neSv g Cmit e. Ms imot n aet oedsge
e g ee pd y h t t n cl ee s ains o m es ot pra t r hs ei nd
t
t po oet eet bs mn o pyo ddcio p n wic ino er g la s v g t b i vse
o r mt h sali h e t f ar ll e ut n la s h h vlv e u r ains o e net d
inSv g Bns I d aio s cni u t b rci e a t eFdr lRsreBn o Nw okt a
ains o d. nic t n otne o e eevd t h e ea eev a k f e Yr ht
inrain nmes o inut ia adcmeca cnen, bns adohrt ps o bsnse ae
ces g u br f d sr l n o mri l ocr s ak, n t e y e f ui ess r
sti gu pyo ddcio p n, fo t ecne i neo t e e p ye i ac mlain f nsfo t e
etn p ar ll e ut n la s r h ovne c f hir mloes n cu u t g ud r h
prhs o Df neSv g Bns I f r aio cnenn pyo ddci np n myb ot i e
uc ae f ee s ains o d. nomt n ocr i g ar ll e uto la s a e band
fr mh Nw okSaeCmit efo t eSleo Df neBnsa dSa p, 17 S t Ae u,
o t e e Yr t t o m e r h a f ee s o d n t ms 20 ixh vne
t
Nw ok Nw ok
e Yr , e Yr .




MONTHLY REVIEW, JANUARY 1, 1942

Business Conditions in the United States

Index of P h ysical V o lu m e o f Industrial P ro­
duction, A d ju ste d for Seasonal Variation
( 1 9 3 5 -1 9 3 9 a v e r a g e s 100 per cent)

U.

S. B ureau of Labor S tatistics Indexes of
W h o le sa le Prices, B ased on 12 F oodstuffs
and 16 Industrial M aterials (A u g u s t,
1 9 3 9 = 100 per cen t)

M B BN /v ^
E t Ah
MP
RSREBLNE/*
EEV AACS

J
1
fy9
ME I
OYN
N
_____ C CLT N
I UAI
R O

1939

V
i

i

y '" 1

1940

M em ber B ank R eserves and Related Item s

M oney Rates in New Y ork City




(Summarized by the Board of Governors o f the Federal Reserve System)
I N DUSTRIAL activity was maintained at a high rate in November and the first half
of December and distribution of commodities continued in large volume. Our entry
into the war was reflected in a sharp advance in the prices o f some commodities,
some decline in security prices, and further curtailment of nonmilitary production.
P roduction
Volume of industrial output was sustained in November at the high rate of the
previous two months, although a decline is usual at this season. The B oard’s adjusted
index advanced from 163 to 167 per cent o f the 1935-39 average. In industries
engaged in production of armament and munitions activity continued to increase and
in most other lines volume of output was maintained or declined less than seasonally.
Output o f materials, such as steel and nonferrous metals, was maintained at
about capacity. In the automobile industry activity increased, reflecting larger out­
put o f both military and civilian products, and at lumber mills and furniture factories
activity declined less than seasonally. A t cotton and rayon textile mills activity rose
to new record levels, and at woolen mills the high production rate of other recent
months was maintained. Less than seasonal declines in output were indicated for
shoes and manufactured food products.
Crude petroleum production increased further in November. Bituminous coal
production declined somewhat owing to temporary shutdowns at some mines during
November, and anthracite production was curtailed as a result o f unusually warm
weather in some areas and the existence o f considerable stocks of coal accumulated
in earlier months. Iron ore shipments continued in large volume until the shipping
season closed early in December; during 1941 about 80 million tons of ore were
brought down the Lakes as compared with the previous record of 65 million tons in
1929. Stocks of ore at lower Lake ports on November 30 amounted to about a seven
months’ supply at the current consumption rate o f around 6.5 million tons a month.
Following a declaration o f war by this country in early December further steps
were taken to curtail output o f nondefense goods using critical materials. Output
quotas for passenger cars and household appliances were greatly reduced and cessa­
tion o f output o f some other products was ordered as o f the end of January. Also,
the production and sale o f new automobile tires and tubes for civilian use were halted
temporarily, pending establishment of a system for controllng their distribution.
Value o f construction contracts awarded in November declined sharply from the
high level o f other recent months, according to figures of the F. W. Dodge Corpora­
tion. Awards for privately financed construction decreased more than seasonally and
contracts for publicly financed projects also declined following a continued large vol­
ume o f awards since last spring. Total awards in November were about a fifth larger
than a year ago, while for the first ten months of the year they were three-fifths larger.
D istribution
Volume of retail trade increased in November following some decline in the previ­
ous month. Department store sales, as measured by the B oard’s seasonally adjusted
index, advanced to 115 per cent o f the 1923-25 average as compared with 105 in
October and 116 in September. Larger sales in November were also reported by
variety stores. Sales of automobiles increased somewhat, according to trade reports,
but, as in other recent months, new car sales were smaller than output and dealers’
stocks rose further.
In the second week o f December sales at department stores rose less than season­
ally, particularly in the coastal regions.
Freight traffic on the railroads continued in large volume in November and the
first half of December. Grain shipments increased considerably and loadings o f mis­
cellaneous merchandise, which includes most manufactured products, were maintained
at the high level reached several months earlier. Coal loadings declined somewhat,
owing in part to temporary shutdowns at some mines. Shipments o f most other classes
o f freight decreased less than is usual at this season.
Commodity P rices
Following the entry of the United States into the war, prices o f grains, livestock,
and foods rose sharply. Prices o f most industrial materials traded in the organized
markets, being limited by Federal regulation, showed little change. Additional meas­
ures to prevent advances in wholesale prices were soon announced for wool and shellac
and for such imported foods as cocoa, coffee, pepper, and fats and oils.
Retail food prices, as measured by the Bureau o f Labor Statistics index, increased
iy 2 per cent further from the middle of October to the middle o f November to a level
18 per cent above a year ago. Indications are that retail prices of both foods and
other commodities continued to rise in December.
B ank Credit
Total loans and investments at banks in leading cities continued to advance dur­
ing November and the first two weeks o f December, owing mostly to increased hold­
ings of Government securities at banks outside New York City. Commercial loans,
after showing little net change in November, again increased sharply in the first two
weeks of December.
Excess reserves increased through most o f the period as a result of Treasury
expenditures from Reserve Bank balances, but declined sharply on December 15 when
these balances were replenished in connection with the issue of 1.6 billion dollars o f
new Government securities. Money in circulation has continued to show a marked
increase.
Y ields on U nited States Government Securities
The yield on 2 ^ per cent United States Government bonds o f 1967-72, which
reached a record low level o f 2.32 per cent on November 5, advanced somewhat in
November and, after the entry o f the United States into the war, rose to 2.50 per cent.
Yields on short term Government securities increased further. The yield on Treasury
notes of December, 1945 advanced to 0.93 per cent on December 17, compared with
0.62 per cent on September 15, and the rate on three month bills rose to 0.295 per cent.