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M ONTHLY R E V IE W of Credit and Business Conditions Second Federal Reserve District Oto e 1 9 1 c b r ,1 4 F d ra Rs rv B n , N wY rk e e l ee e a k e o M on ey M a r k e t in S e p te m b e r Tr uhu t emnho Spe br t emnymr ho g o t h ot f e t me, h oe a ktwsi f e cdt sm et n b t epopc o a e a nlune o o e xe t y h r s et f n i ces inrqi e rsre o m br bns We nrae e urd eevs f e e ak. hn m t e i ces inrsre rqirmns ws at a a h nrae eev eu e e t a cully n nucd hwvr it a pae t a t eat nhdbe one , o ee, perd ht h cio a en r t e fu d cut d a les fo t epee t ahr lly iso ne , t at r h rsn. Teanucmn o t ec ag inrsrerq ir h none e t f h hne eev e u e mns wi hws md pb o Spe br 2, sae e t, hc a ae ulic n e t me 4 t t d t a t eBado Gvr oso t eFdr l RsreSs ht h or f oenr f h e ea eev y t ma e cnuaio wht eSceayo t eTes e , ft r o s lt t n it h ert r f h ra uy hd i cesd rsre rqi e e t fo m br r , a nrae eev e urmns r e e m bnst t epee tsauoylim, ef ci eNvme 1 ak o h rsn t t t r it fetv oe br , a afut e se int eGvr mn’spor m rcm s rhr t p h oen e t r ga fo o bt ginlaio . Bg n g o Nvme 1 14, t e ain f t n e inin n oe br , 91 h nwe u e e t w b inacr wht epre t gs e rqirmns ill e cod it h ecnae s eii dint ef llo in t b ,wi hcmae t e wh pcfe h o w g ale hc o prs hm i t t ersrepre t gsnw f re h eev ecnae o in oc. (Per cent of deposits) Classes of deposits and banks Present New requirements requirements On net demand deposits: Central Reserve City banks.......................................... Reserve City banks......................................................... “ Country” banks............................................................. On time deposits: All member banks........................................................... 22 % 17 H 12 5 *26 20 14 6 O t ebs o t epee tf ueo ao t$ ,2 0 0 ,n h ais f h rsn ig r f bu 5 0 ,0 0 00o ecs rsre hldb a m brbns a dt e 0 f xes eevs e y ll e e ak, n hir m pee t d t ib t n it isetmt dt a t ei ces in rsn isr uio , si ae ht h nrae rqi e rsr e, wi ha onst ao t oesvnh e urd eevs hc mut o bu n ee t , wu r s ltinadc eo ao t $ ,2 0 0 ,0 0ine o ld eu elin f bu 1 0 ,0 0 0 x cs rsre. Ter s lt gdc n inecs rsre, t es eevs h eu in eli e xes eevs o aot $ ,0 0 0 ,0 0 wu , a t e acma y g d bu 4 0 ,0 0 0 , o ld s h co pnin ia ga i d ae, lev ecs rsr e cni ealyhg e r mnict s ae xes eevs o sdr b i hr t a t e wr im e iae a e t ersrepre t g hn hy ee md t ly ft r h eev ecnae a jut e tef ci eA r 1, 13, nt it sa d gt e d smn fetv pil 6 98 owht nin h fat t a t eNvme 1i ces cne t erdci n c ht h oe br nrae acls h e uto wi hoc re o t a dt . Teh hrlee o ecs hc curd n ht ae h ig e vl f xes rsre, ds iet eh hrpre t gs o rqi e r eevs ept h ig e ecnae f e urd e sre, i t b ep indpinipllyb t elag i f w evs s o e x la e r c a y h r e nlo o gldsne13 ( a s gaget i ces inm br f o i c 98 c uin ra nrae e e m bn rsrebla cs, wi hfo t ewo pro hs ak eev a ne) hc r h hle ei d a be o lyprlyofe b alag i ces i mnyi en n at fst y r e nrae n oe n c c laio snet a t e adb go t o m br iru t n i c ht im, n y r w f e e h m bn rsre rqi e e t acma yn epni no ak eev e urmns co pni g xa so f dpst. Snet ebg n go 14, hwvr t egld e ois i c h einin f 91 o ee, h o i f w a be rt r e , a d a ars lto i cessin nlo hs en eadd n, s eu f nrae mnyinc c laio , m brbn rsrerqi e e t, oe iru t n e e ak eev eurmns m ad Tes r hld g o cs ad dps s in t e n r auy o ins f ah n e oit h RsreBns ecs rsre hv s o nadc in eev a k, xes eevs ae hw elin g t ne c dr gt eps nn mnh. e dny uin h at i e ot s TeNvme 1i ces inrqi e e t, if a p d h oe br nrae e urmns plie t t epee t lee a dd t ib t no ecs rsre, o h rsn vl n isr uio f xes eevs wu rdc Cnr l RsreCybn ecs rsre o ld eue e t a eev it ak xes eevs f o a poimt ly$ ,4 0 0 ,0 0t $ ,7 0 0 ,0 0 t e r m pr x ae 2 0 ,0 0 0 o 1 0 ,0 0 0 , h ecs o Nw Yr Cy bns dc in f o xes f e ok it ak elin g r m $ ,8 0 0 ,0 0 t aot $ ,3 0 0 ,0 0 whu t k g 1 0 ,0 0 0 o bu 1 0 ,0 0 0 , it o t a in i t acutpsi lewhr wlso fu d b o t f o n no con osb it da a f ns y u-o-t w bns A RsreCybns ecs rsre wu d ak. t eev it ak, xes eevs o ld e c n f o $ ,8 0 0 ,0 0 t $ ,5 0 0 ,0 0 ad a li e r m 1 5 ,0 0 0 o 1 0 ,0 0 0 , n t cut ybnsf o naly$ ,0 0 0 ,0 0t $ 0 ,0 0 0 . o nr ak r m er 1 0 ,0 0 0 o 8 0 0 ,0 0 Tu t eNvme 1i ces i rsre rqi e e t hs h oe br nrae n eev e urmns w a t e Bad o Gvr os sae e t inict s ill, s h or f oenr’ t t mn d ae, “lev t ebns a awo wha p f ns t m t ae h ak s hle it mle ud o e e a ce itneso t edf nepor m n a leit ae ll rd ed f h ee s r ga ad ll g imt rqirmns o t e c so es A s r e md r e u e e t f hir ut mr.” uvy ae e cnlyb t eBado Gvr os s o e t a alag e t y h or f oenr hwd ht r e mjoit o t emme bnsw b alet m t t e a r y f h e br ak ill e b o e h e i cesdrqirmns o t o eisin ecs rsre nrae eu e e t u f x t g xes eevs ada bt af wo t ermine b da in uo a n ll u e f h e a dr y r w g pn prio o t e dpst wh c y crepne t. ot n f hir e ois it it ors o dns BILLIONS OF DOLLARS R eserve Position of AH M em ber B a n k s, Sh ow in g Required R eserves and E x cess R eserves to D ate, and E stim ated R equired R eserves after Increase in R eserve P ercentages E ffective N ovem b e r 1, 1 9 4 1 , B ased on P resen t A m o u n t o f R equirem ents 74 MONTHLY REVIEW, OCTOBER 1, 1941 Frhr oe t eBadhsanucdt a pnlt sfo ut emr , h or a none ht e a ie r dfc n rsre, pio t Dcme 1 14, w b ei ie t eevs r r o ee br , 91 ill e bsduo rsre rqi e e t inef c Ot br 3, ae pn eev eurmns fet coe 1 14. 91 Teinraeinm brbn rsrerqi e e t a d h ces e e ak eev eurmns n m t ecnr l o cnu e ce it wi hbcm ef civ h o t o f os mr rd , hc ea e fet e Spe br1 bt cntt t se s int emnt r ad e t me , oh o siue t p, h o eay n bnin f ldamda s ple e t gohrmaue i a k g ie , i e t up mnin t e es rs n t eoe-a por mo cmai ginlaio aydvlo h vr ll r ga f o btn f t nr ee p mns Teeohra t f t nr maue i c d t e e t. hs t e ni-inlaio ay es rs nlue h por m ff a c ga mc a psi leo t eGvr r ga o innin s uh s osb f h oen mn dfct b s le o Sv g Bns t iniv uls e t ei i y a s f ains o d o d id a , t ee ylimin t eepni no dpst wic i in hrb it g h xa so f e ois h h s vlvd in cmeca bn prhss o Gvr mn oe o mri l ak uc ae f oen e t sc r i s t eint uin o mc hai r t xs o in euite, h sit t g f uh eve ae n d ida ( oh d et ad inir cly ad o cr iv uls bt ir cly n d et ) n n o pr t n, a dt eet ni no pioit s a ct n o oaio s n h xe so f r r ie, lloaio s f mt r ls adpic rg laio . Tei ces inrsre aeia , n r e eu t n h nrae eev rqirmns t b ef ci e Nvme 1 ehut t e eu e e t o e fetv oe br x a ss h eisin sauoypwro t eBado Gvr osoe x t g t t t r o e f h or f oenr vr rsrerqi e e t, a dt eSceayo t eTes r eev e urmns n h ert r f h rauy adt e Car a o t e Bad o Gvr os jo t n h hi mn f h or f oenr inly sae o Spe br 2 t a “rcme dtos o t e t t d n e t me 3 ht eo mnai n n h qeto o wa a d io a pwr, if a y oe bn usi n f ht dit nl o es n, vr ak rsre t eBads o ldhv dr gt epee te e eevs h or hu ae uin h rsn mr gnya dwa f r t eepwr s o ldt k w b e c n ht om hs o es hu ae ill e md we ee t eTes r a dt eBada e f rhr ae hnvr h r auy n h or , ft r ut e cnuaio , dt r i et a s c ato i ncsayt o s lt t n eem ht uh ci n s ees r o n hlpincmain inlaio aydvlo mns 9 e o bt g f t nr ee p e t.’ svnt a in ssi n o t e mnh bt epcaio s ee r d g esos f h ot , u x et t n t a ato t ri ersrerqi e e t pre t gsfo ht ci n o as eev eurmn ecnae r m brbnswu b t knse t hv hdadm e e ak o ld e ae emo ae a a p m e in ef c o picso Tes r bns pric lalyt e n g fet n r e f r auy od, at u r h inemdaet r i s e, bt enSpe br1 a d2. t r e i t emsus ewe e t me 0 n 3 Hwvr o Spe br 2, f llo in t e at a a o ee, n e t me 4 o w g h cul n nucm t o hg e rsre rqi e e t, Tes r one e f i hr eev e urmns rauy n bn qoaio s mvdu mr t a * pin, o t e od ut t n oe p oe hn 4 o t n h aeae F mes ws a o in ei e c lae in t e vr g. ir ns a ls vdne t r h mnh adt e go n lot i m -Spe br ws r o t , n h r ud s n id e t me a e gind a e. A inict d b t e mvmn o y ld, pics o s d ae y h oe e t f ie s r e f Tes r nt sdpe t t e lo pin fo t emnh rauy oe i pd o hir w o t r h ot o t e 2r b t rcvrds be unlyt s o litle n h 3d u eoee usqe t o hw t c ag fo Spe br Tey ldo t e%prcn t x hne r e t me. h ie n h e e t a ee p nt sdeMrh1, 14, a e f cut go ly xmt oe u ac 5 95 ft r lut ain n s hlyint ef s hlf o t emnh mvdfr m0 4 lig t h irt a f h o t , oe o .3 prcn o t e1t t 0 0prcn o t e2r . B t e e e t n h 6h o .4 e e t n h 3d y h e do t emnht ey ldhds tle bc t 0 7pr n f h ot h ie a et d ak o .3 e cn. Tey ldo t e % pr cn t xb nt s de e t h ie n h e e t aale oe, u Dcme 1 ,1 4 , t ae as ila pten ee br 5 9 5 r cd im r at r . Acpe bd o t efo rwe lyis e o t xb 9 ce t d i s n h u ek sus f aale 1 dyTes r b dr gSpe brwr t nee o a r auy ills uin e t me ee e drd n ineetbssdc in f o 0 9 prcn fo t eis e t rs ae elin g r m .0 0 e e t r h su dt dSpe br3t 0 3 prcn (h lo etrt sne ae e t me o .0 7 e e t t e ws ae i c lat Fbur ) fo t eis edt dSpe br2. Ec s e r ay r h su ae e t me 4 ah o t eis e wsint ea on o $ 0 ,0 0 0 ; t efrt f h sus a h mut f 1 0 0 ,0 0 h i s t rerp cdmt r gis e o $ 0 ,0 0 0 ec . he e lae auin sus f 2 0 0 ,0 0 ah Money Rates in New York M ember B a n k Credit Cm eca inut ia a d ar u ua lon o o mri l, d sr l, n gic lt r l a s f we ly rprin m br bns in led g c ie e ek e ot g e e ak m a in it s x pne $ 0 ,0 0 0 fut e int e fo r wes e dd a dd 2 6 0 ,0 0 rhr h u ek ne Spe br 2, a da sm ohr t ps o lon a o e t me 4 n s o e t e y e f a s ls inrae , t t l lon o t e rprin bns rs cesd oa a s f h e ot g ak oe $ 5 ,0 0 0 . Tt l i vsmn hld g o t e bns 2 7 0 ,0 0 oa net e t o ins f h ak, hwvr dc nd $ 4 ,0 0 0 , o i g t a do o o ee, eli e 2 4 0 ,0 0 w o rp f n $ 6 ,0 0 0 int e bns hld g o Tes r b 2 5 0 ,0 0 h a k7 o ins f r auy ills wi hacma ie ardcio o $ 0 ,0 0 0 int e hc co pn d e ut n f 3 0 0 ,0 0 h o tt nin vlu eo s c sc r i sdr gt epro usa d g o m f uh euite uin h ei d udrrve . A ant r s lt o t ers inlon ad ne ei w s e eu f h i e a s n rdci ninsc r yhld g, t et t lvlu eo rpr e uto euit o ins h oa o m f e ot in m brbn ce it o tt nin wslitlec agd g e e a k rd usa d g a t hne m fo t efo rwese ddSpe br2. r h u ek ne e t me 4 Ajut d dmn dpst o t e rprin bns d se e ad e ois f h e ot g ak s o e n mt r l ntc ag fo t ef u wese dd hwd o aeia e hne r h o r ek ne Spe br2, a do Spe br 2 wr $ 5 ,0 0 0 e t me 4 n n e t me 4 ee 1 4 0 ,0 0 blo t epa rahdint elat rpr o J ly Dms e wh ek ec e h te at f u . o e t i t r a kdps s rs s ap , rf cin inpr a ic nebn e oit oe hr ly elet g at mvmn o bnin fu d t Nw ok Uit dSae oe e t f a k g n s o e Yr . n e t t s Gvr mndps scni udt rs t r uhSpe br oen e t e oit o tne o i e ho g e t me 2, a t ers lto t ece it go smo t epoed 4 s h eu f h rd in f o e f h rce s o sle o Df ne Sv g Bns a d Tes r t x f a s f ee s ains o d n r auy a sre nt s b to Spe br2 t eewsas bt nia ei s oe, u n e t me 5 hr a usa t l whr wl b t e Tes r fr mGvr mn dps it da a y h r auy o oen e t e oi t r so poed o t eDf neSv g Bnss le. aie f rce s f h ee s ains o d a s G overnment Securities Dr gt eget rpr o Spe brt eGvr mn uin h rae at f e t me h oen e t s c r ymr e wsqie, a dt eewslitlentc ag euit akt a u t n hr a t e hne inpicsfo t emnha awo . Bt t xee p ad r e r h ot s hle oh a xmt n t xb Tes r bnsf cut dnro lyint ef s aale r auy od lut ae ar w h irt Sept. 30, 1940 Aug. 30, 1941 Sept. 30, 1941 Stock Exchange call loans....................... Stock Exchange 90 day loans................. Prime commercial paper— 4 to 6 months Bills— 90 day unindorsed......................... Average yield on Treasury notes (3-5 1 *1H % > x 1 y2 h a 1 *1 H X A 0.45 Average yield on Treasury bonds (not callable within 12 years) t ..................... Average rate on latest Treasury bill sale, 91 day issue................................... Federal Reserve Bank of New York discount rate.......................................... Federal Reserve Bank of New York buying rate for 90 day indorsed bills. . 0.31 2.20 1.96 1.97 0.013 0.114 0.037 1 1 1 Vl X 0.36J X * Nominal. f “ Tax exempt” issues only. t Change of + 0 .0 3 per cent from previous yields due to dropping from the average the 1 per cent Treasury note issue of September 15, 1944, which matures within three years. G o ld M o v e m e n ts I prso gldinot eUit dSae dr gSpe mot f o t h n e t t s uin e t m brwr insm htlagrvlu e b tt entinrae e ee o e a r e o m, u h e ces w i t egldsoko ao t$ 0 0 ,0 0wsa poimt ly n h o t c f bu 4 ,0 0 0 a pr x ae t esm a int et repee in mnh. Gldhld h a e s h he rcd g o t s o e udr er ak fo f r ig acut a t e Fdr l ne amr r oe n con t h e ea Rsre Bns i cesdaot $ 7 0 ,0 0 d r g t e eev a k nrae bu 4 ,0 0 0 uin h mnht a poimt ly$ ,0 3 0 ,0 0 ot o pr x ae 2 2 ,0 0 0 . I t efv wese ddSpe br2, t eDprmn n h i e ek ne e t me 4 h e at e t o Cmec rpre t ercip o $ 0 0 ,0 0o gld f o m e e ot d h ee t f 6 ,0 0 0 f o r int e f llo in pinipl a o ns $ 8 0 ,0 0 f o h o w g r c a mut : 3 ,6 0 0 r m Cnd, $ ,7 0 0 f o Rsia $ ,2 0 0 f o t e a aa 5 0 ,0 0 r m us , 4 0 ,0 0 r m h Pilipins $ ,5 0 0 f o Clo ba $ ,1 0 0 f o h p e, 2 0 ,0 0 r m o mi , 2 0 ,0 0 r m Asr lia $ ,6 0 0 f o Pr , $ ,4 0 0 f o Ci , ut a , 1 0 ,0 0 r m eu 1 0 ,0 0 r m hle $0 ,0 0f o Mx o ad$ 0 ,0 0f o N aau. 9 0 0 r m eic, n 7 0 0 r m ic r g a FEDERAL RESERVE BANK OF NEW YORK M e m b e r s h i p in t h e F e d e r a l R e s e r v e S y s t e m Dr g Spe br t o a d io a Sae c at rd uin e t me w dit nl t t hree bnsadoemr t utcma yint eScn Fdr l ak n n oe r s o pn h eod e ea RsreD t ic bcmm br o t eFdr l Rsre eev isr t ea e e es f h e ea eev m Sse , t eeyinrain t t iry u t enme o yt m hrb ces g o h t -fo r h u br f int uio s wi hhv bcm m br snet ef s sit t n hc ae eo e e es i c h irt m o t isya. Ec d gs v g bns inut ia bns f h er xluin ains a k, d sr l ak, adpivt bnsint eScn Fdr lRsr eD t ic, n r ae ak h eod e ea eev isr t nn o wi haenw e br o t eFdr l Rsre oe f hc r o m es f h e ea eev m Sse , a huh s v g bns ad inut ia bns yt m lt o g ains ak n d sr l ak my udr cra cnii n bcm mmes t e a ne et in o dto s eo e e br, h pee t mmes i s ut n in t is D t ic, wh rsn e brhp it aio h isr t it rs ett nmeso m bra dnn e brbns i epc o u br f e e n om e ak, s m m a fo w: s llo s Member Nonmember Total National banks.......................................... State banks and trust companies.......... 583 211 0 196 583 407 Total.................................................... 794 196 990 75 i f e c o avrenw fr mt eEsenFo t ad nlune f des e s o h at r r n n t eTes r po oa t lim cr oaio poit t 6 h r auy r ps l o it opr t n r f s o prcn o inet dc p a a dt e9 sokaeaeb e e t f vse a it l, n h 0 t c vrg y Spe br2 hdrcddt t eSpe br1 lee A e t me 6 a ee e o h e t me 0 vl. t t ee do t emnht epic aeaewss hlylo e h n f h ot h r e vr g a lig t wr t a a t ebg n ga dws6prcnblo t ey a’s hn t h einin n a e e t e wh e r hg . I d sr ls ae md asr ne s o i ginSp i h nut ia hrs ae t o gr hw n e t me t a e hrr ilo uilit sok. Ta in at it e br hn it e a r t y t c s r d g civ y o t eNwYr SokEc a g fo t emnha a n h e ok t c xhne r h ot s wo cni udt b rsr t da huho oedyt e hle otne o e et ice , lt o g n n a, h 2t , vlu ewst ehai s sneJ ly2. 5h o m a h evet i c u 2 Picso hg et gaecr oaebns a m s rd r e f i hs r d opr t od, s e ue a b Mo y i dxo Aabns wr ofsm htint e y o d’s ne f a o d, ee f o e a h w f s hlf o t emnhbt s be unlyrcvrdms irt a f h ot u usqe t eoee ot o t isdc n. Ma wi , mdu gaebns r t d f h eli e en hle e i m rd o d, ae Bab Mo y s o e a ire u rdc n o aot % a y od, hwd n r g la eli e f bu o apin d r g Spe br Ms o t is dwwr f o t uin e t me. ot f h o n ad mvmn wsacut dfo b cni udwans in oe e t a cone r y o tne ekes scn-gae r il bns wi hmy pr as b as eo d r d a o d, hc a ehp e so c t dwhdvlomnsint er ilr a wg s ut n iae it ee p e t h a od ae it aio . Ac r in t Sa dr ’spic aeae pim mn ipl cod g o t n ad r e vr g, r e uic a bnswr sed a lee s hlyblo t ercr hg od ee t a y t vls lig t e wh eod i h stAg s 6 lat Saprssinqoai n o f r ig e uut , s. hr i e ut to s f oe n dlla bnswr rpre fo t ef s hlfo Spe br o r od ee e ot d r h irt a f e t me. Te lags gi s wr in bns o Gr a -oc pe h r et an ee od f emn cui d cuti sadi Jpns bns o nre n n aa ee od. Tu, o t e‘*o mria bnsint is D t ic, 8 hs f h c m ec l’’ ak h isr t 0 prcn o t enme aenw e br o t eFdr l e e t f h u br r o m es f h e ea m Rsr eSse ;mmes i o a Nt nlbnsint e eev yt m e brhp f ll aio a ak h cninna Uit d Sae ec sv o A s a i r o t e t l n e t t s xlui e f lak s e qi e b t e Fdr l Rsre At wi Sae bns urd y h e ea eev c hle t t ak adt ut cmai s my bcm m br, s b c t n r s o pne a eo e e es ujet o m t e mei gcra cniio s o mmes i , adin hir etn et in o dt n f e brhp n t is lat r go pnaly5 pr cn o t enme o Tea adt ago po lifeinuac cmai so h te r u er 2 e e t f h u br f h wr o r u f s r ne o pne f s c int uio s in t is D t ic ae nwm br, $ 0 0 ,0 0 A eic n Tle hn adTler p Cm uh sit t n h isr t r o e es 9 ,0 0 0 mr a e po e n e ga h o m acutn fo a poimt ly8 prcn o t east o pn rf nin dbnue o Spe br 2 r i e t e co ni g r pr x ae 7 e e t f h ses f a y eu d g ee t rs n e t me 9 asd h a Sae bns ad t ut cmai s in t e D t ic. vlu e o cr oae a d mn ipl f a c g dr g ll t t ak n r s o pne h isr t o m f opr t n uic a innin uin e p 1 0 0 it u e t Fo t e sa do t o t t l cmeca bn ast, Stt me t h2e,0e,0t . Whuthsisr thmnh r m h t npin f oa o mri l ak ses o e br o$ 0 0 0 mo tt i soe h oh ’s o lle bnswi haem br o t eFdr lRsreSse yal.wuprv f eaioea o neinm5 ,0a 0 ,re ak hc r e es f h e ea eev yt m teas Cld ae btn h s a s dt $ et0nt ef m r t t o acutfo a poimt ly9 prcn o t east o a wi hoo $ a 0lo0 rsrmud“nw 8n0 0h con r pr x ae 2 e e t f h ses f ll hc nr o6 0 0 n ee t t o 1 o e,0 Te ly 2 ,0 ,0 e sne e m y p ”. cmeca bnsint isD t ic. o mri l ak h isr t o f ic l a c in t t in n Te mvmn t wr mmes i in t e Fdr l vlu eo eus ipvfa nogcnnudpoelit, ah h oe e t o ad e brhp h e ea hsm t mn saein mnhoa depodcae sit a fo h lat e r l t s a r x e t e r , im d RsreSse hsa obe inpors inohrFdr l lo et lee rahd sne Spe br 13, t e f s eev yt m a ls en r ges t e e ea ws e RsreD t ics a dfo t ef s e h mnh o t e mnhovlswrc e i c e t me, 99 h irt eev isr t , n r h irt ig t ot s f h ot ft e a. h ya t enme o bnsbcm gm br ageae Dt ilso t emjo f t to saea fo w: er h u br f ak eo i e es grgt d ea f h a r loai n r s llo s n m 13 Teewr 3 amsoso nwm br int e $90,000,000 American Telephone and Telegraph Company 2% 2. hr ee 9 d i i n f e e es h s m Ci aoFdr l Rsr eD t ic, inwi ht enme hcg e ea eev isr t hc h u br per cent debentures maturing in 1976, awarded at o nn e br cmeca bns whs fi i n c p a f om e o mri l ak it ufce t a it l m 101.842 (or a net interest cost of about 2.66 per cent) ; for refunding purposes sokt m t t em immsauoyrqi e e t fo t c o e h i u t t t r eurmns r e n cent first mortgage Fdr lRsr emmes i i b fa t elags o a y 18,000,000 Erie Railroad Company 3%atper net interest cost o f e ea eev e brhp s y r h r et f n bonds of 1971, awarded a Fdr l RsreD t ic. TeNwYr Rsre D e ea eev isr t h e ok eev is 3.19 per cent and reoffered at 10 2^ (yield o f t ic hd3 amsosd r gt esm pr d adfo r t a 1 d isi n uin h a e eio , n r 3.125 per cent) for principal amounts up to $499,000 and at 101% (yield o f 3.15 per cent) for t e ohr d t ics t e nme o bns t a bcm h t e isr t h u br f ak ht ea e amounts o f $500,000 and upward; for refunding m br vr df o 1t 1. e es aie r m o 2 m purposes N ew S e c u r ity M a rk e ts Sokpicsf cut dire u r dr gSpe br t c r e lut ae r g laly uin e t me. Nn o t epic mvmnswse hro lo gdr t n o e f h r e oe e t a it e f n uaio o o get et n. Bt enSpe br 2 a d1 t e r f ra xe t ewe e t me n 0 h Sa dr 9 sokpic aeae dc ndao t 2pr t nad 0 t c r e vrg eli e bu e cn, t e rcvrd3prcn int enx s t a in e t hn eoee e e t h et ix r d g ssi n. Aohrpr do dc n f llo e , udrt e esos nt e eio f eli e o wd ne h F in a n c in g 14,700,000 Saint Paul Union Depot Company first and refund ing mortgage 3% per cent bonds o f 1971, awarded at a net interest cost o f 3.06 per cent and re offered at 102% to yield 3.00 per cent; for re funding purposes 9,000,000 State Roads Commission of Maryland 1% to 2% per cent refunding bonds maturing from .1942 to 1956, awarded at a net interest cost o f 1.85 per cent and reoffered to yield from 0.30 to 2.00 per cent; for refunding purposes. 76 MONTHLY REVIEW, OCTOBER 1, 1941 Spe br we t e uofca dso n nro e t e t me, hn h nfi i l i cut ar wd o 1y pr cn, t es a s sneNvme, 13. Te 0 4 e e t h mllet i c oe br 99 h dso n s be unly w e e , hwvr t 1 % pr i cut usqe t idnd o ee, o 1 e cn o Spe br 2, a t e saoa t uis dmn e t n e t me 3 s h es nl o r t e ad s c e e ; a t ee do t emnhit soda 1 %pr laknd t h n f h ot t o t 1 e cn, a aa s 1 %prcn amnher r A o g e t s gint 0 e e t o t alie. mn t e Lt A eic n ec ags t e f e r t fo t e h ain mr a xhne, h r e ae r h Agnin ps cni udt hldao n $ .2 8 u t r e t e eo o tne o o r ud 0 3 0 nil m -Spe br we sm rat n dvloe a db id e t me, hn o e ecio ee pd n y t ee do t emnht er t hdrcddt $ .2 4 , t e h n f h ot h ae a ee e o 0 3 3 h lo etsnelatA r Tisrat nmyhv be de ws i c s pil. h ecio a ae en u, i pr a les, t adc n i t eb y go ps s udr n at t at o eli e n h uin f eo, ne li e s hr, t b ue fo t eprhs i Agnin o cne ee o e sd r h uc ae n r e t a f Ia nlir t cvrrmt ne t Ia . Sm dmn t lia e o oe e i a cs o t ly o e e ad t f rdllasi t eAgnin f e mr e, ina t ipt n o o r n h r e t e r e akt nic aio o t e py e t o t ir q at r poit o A eic n f h amn f h d ure r f s n mr a drc i vsmns inAgnin my a ohv be a i et net e t r e t a a ls ae en f co i t erat nint eps dr gt elat rpr at r n h ecio h eo uin h te at o Spe br A r hld g a ao t $ .2 5 dr g f e t me. fte o in t bu 0 7 0 uin Tmoayf a c gt t le a a d io a $ 0 0 ,0 0 ms o t emnht ef e r t fo t eVnz e nbli e pr r innin oa d n dit nl 8 ,0 0 0 ot f h o t , h r e ae r h e eula o adinlue $ 5 0 ,0 0NwYr Cy0 5 prcn vrdc ndt $ .28 o Spe br 2 bt e ddt e n c dd 3 ,0 0 0 e ok it .2 e e t a eli e o 0 65 n e t me 6 u ne h rvneb mt r gNvme 5 9 1 ad$ 9 0 ,0 0 mnh a $ .2 0 . Te f vr b ot o fo Cbn ee u ills auin oe br ,1 4 , n 2 ,0 0 0 ot t 0 7 0 h aoa le ulok r ua Fdr l I t r e iae Ce it Bn % pr cn cno s gr eprs acma y g t e rcn i ces i e ea nemd t rd a k e e t o s li ua x ot, co pnin h ee t nrae n dt ddbnue mt r gJ ly1 14 wi hwr s ld A eic ni pr qoa fo Cbns gr apas t ae ee t rs auin u , 92 hc ee o mr a mot ut s r ua ua, per o b laglyrs o s lefo sm fut e imr vmn i e r e epnib r o e rhr poe e t n o a ineetbs o 0 0prcn. n n t rs ais f .4 e e t t eCbnps er int ismnh we t ed cut h ua eo aly h o t , hn h ison Ac r in t pb anucmns anme o cr nro e f o % pr cn t aot % pr cn, t e cod g o ulic none e t, u br f o arwd r m e e t o bu e e t h pr to s aep nin t is e sc r ie t r i enw s a s in svr l yas oai n r la n g o su euit s o as e mllet eea er. c p a bt o lyinaf wcssaes bt nia a ons n h a Es, t ms s nic tf e ec n a it l, u n e ae r usa t l mut a h o ig ino e . Te DwCe i a Cma yhs of rdit dIetp Ftwsth eciottig if bnhrrniplaoe vlvd h o hm l o pn a fee s e loee r a t eato ae a t epin xh gc n c soko es o rcr Spe br2, 13 1 s ae o Av bmn Sa g a wic ka ty ef c o vaully t c hldr f eod e t me 6 1,59 hrs f x ak in hnhi h hhn h fet f ir nn is ns de cmo sokt r uht a seales bcipio wra t s s e d g a ursr t d t a in in t e Sa g a o mn t c ho g r nf r b usr t n ar ns upnin ll net ice r d g h ht a i n e p in Ot br6 a dt eWsinhueE cr a d oe mr e. It ws rpre o Spe br 8 tht x ir g coe , n h et g o s let ic n pn ak ot d Mnf cuin Cma y w of r 5 4 2 s ae o bac e inth aoahemr an r ismet h aa a uat r g o pn ill fe 3,46 hrs f rnhs Cin f t eA eic n Be th D c , hd cmo sokt it soko es o rcr Ot br 1, Ci ee bns t wo gnr l, li e ss hv bn o mn t c o s t c hldr f eod coe 5 hns ak, o hm e ea cit e, ue en n a t r uhr hs wi hw ep e o Ot br 2. Te ga t dudr o rf ez grg laio s hdare e ho g ig t hc ill x ir n coe 8 h r ne eu o Uio Pc icRilr a hsrqet dt a b sb s b coeaene uitr einnw cet,dat b edt n n aif a od a euse ht id e u oprt fu wh t e e ly t ne Sag aio lly h ra iliz t n mt do Ot br8fo a i s eo $ 3 5 ,0 0o e u Bado Ci aI lin wht isplic ,t eCi eey a ite n coe r nsu f 1 ,2 0 0 f qip or f hn. n e it h o y h hns un m tt utcrii ae. e r s etfct s n i nwqoe inSa g a a 51 /3 cnsa d33 6 s o ut d hnhi t 1 2 e t n /1 A inic t dint eacma y gd ga , cr oae pne t esm a t e rt s f e b t e Sailiz t n s d ae h co pnin iar m oprt e c, h a e s h ae ixd y h t b aio f a cn aeae ao t $ 3 ,0 0 0 amnhdr g Badfo cvrfo leit aemrhni eimot f o inni g vr gd bu 2 0 0 ,0 0 ot uin or r oe r g imt ec ads prs r m t et ir qat ro t isya. Tevlu eo cr oae t eUit dSae adt eselin ae. O Spe br h h d ure f h er h o m f oprt h n e t t s n h t r g ra n e t me r f ninsdc ndt alo lee b t t e$ 3 ,0 0 0 2 t eNwYr mr e ws avsdt a t eRsre eud g eli e o w vl, u h 1 2 0 ,0 0 4 h e ok akt a di e ht h eev mnh aeaefo nw a it l f t t n ecee t a Bn o I d hdc agdit b y gr t fo dllas o t ly vrg r e c p a loaio s xedd ht a k f nia a hne s uin ae r o r o a yqat rsnet escn q at ro 13. Ci f f o t ee u a n o aot $ .3 3 pr r pe wi h f n ure i c h eod ure f 97 hely r m h qivle t f bu 0 0 0 e ue, hc rs o sb fo t is r e int evlu e o nwc p a hdbe inef c sne A r 2 t t e e u a n o epni le r h is h o m f e a it l a en fet i c pil , o h qivle t f f a cn ws t e f t t ninAg s o $ 2 ,0 0 0 aot $ .3 3 . Te Rsre Bn ’s s llin r t fo inni g a h loaio uut f 2 2 0 ,0 0 bu 0 0 5 h eev a k e g ae r A eic n Tle hn ad Tler p Cma y dbn dllas fo s o dlivr ws a o c a gd t t e mr a e po e n e ga h o pn ee o r r pt e ey a ls hne o h t rs ue. e u a n o aot $ .3 1 ; sneMy 14 t is r t qivle t f bu 0 0 0 i c a, 90 h ae hsbe $ .3 0 . a en 0 0 3 M L N IL IO S O DLAS F OLR 4 0 0 ---------- M on th ly A v era g e V olu m e of D om estic Corporate Security Issu es for R efund in g and for N ew Capital (In m illions of d o llars; third quarter 1941 data prelim inary) F o r e ig n E x c h a n g e s Dr g t e ps mnh ineet in t e NwYr uin h at ot t rs h e ok mr e fo f r ig ec ag cni udt b cnee in akt r oe n xhne o tne o e e t rd t e Wsen Hmpee c re c s Te Cnda h et r e is hr urnie. h a ai n dlla, wic hd be i dmn in t e uofca o r h h a en n e ad h nfi i l mr e inrcn mnh, i poe fut e d r ger akt ee t o t s mr vd rhr uin aly C o m m o d it y P r ic e s Avnin pics aa pe o i ae in wo s le da c g r e gin rdm t d hlea n cm oiymr es d r g Spe br a huh a i o mdt akt uin e t me, lt o g , s n Ag s, t er t o rs wslesr p t a int es r g uut h ae f i e a s a id hn h pin a der s me. Hains o t e pic cnr l b n aly u mr e r g n h r e o to ill FEDERAL RESERVE BANK OF NEW YORK wr rs m aott em d o t emnhadavr t ee eu e bu h idle f h ot n aiey d o pooa wsof rdfo c ekn gnr lpic inla f r ps ls a fee r hc i g e ea r e f to . TeSceayo t eTes r rcme ddt a i n h ert r f h r auy eo m e ht n pr o t elag Gvr mn hld g o s c ar u at f h r e oen e t o ins f uh gic l t r l cmoii sa cto , wet adcr , b s ldt ua o mdte s ot n ha, n on e o o hltpi eavne. TePic Am isr t ravct d a rc dacs h r e d in t ao doae asletv s se o pic f in, limin t eet bs e ci e yt m f r e ix g it g h sali h m to pic cilinst “7 t 10pinipl cmoi e f r e e g o 5 o 0 r c a o md n te o f bic t dpo ut o in ut y i s r a r ae r dcs f d sr .” I t elat rpr o Spe brsmrat noc re n h te at f e t me o e ecio curd i t epi e o anme o cmoii sntudrcil n h rcs f u br f o mdte o ne e in rg laio s epc llyfam n f o po ut. Lr e g eu t n, s eia r a d od r dcs ag pic gin rcr e er int emnhincto ad r e a s eodd aly h ot ot n n hg wr mr o lesofe b s beun dc ns a os ee oe r s fst y usqe t eli e, l t og wetqoai n s o e ntgi so ao n fv huh ha ut tos hwd e an f r ud i e cnsfo t emnh Picso inut ia rwmt r ls et r h ot . r e f d sr l a aeia , oe wi hcilin qoai n hv be w e et b vr hc e g ut to s ae en idly sa lis e , mvdwh nro r ne b t t wr s hly hd oe it in ar w ags u o ad lig t hg e lee . Dr g Spe br t e Oi e o Pic i hr vls uin e t me h f c f r e f Am isr t nisudshdle o mxmm r e fo d in t aio s e c eu s f ai u pics r svr la d io a po ut, inluin Dula frlu br eea dit nl r dcs c d g o g s i me, t ot pso ck,wseppr adehla o o t ee y w y e f oe at a e, n t y lchl, hrb i cesn t oe 3 t et t l nme o pic ci g nrai g o vr 0 h oa u br f r e elins ef ci ea o Ot br 1 Teewr a orv i n in fetv s f coe . hr ee ls eiso s cra cilin r g laio s a o g wi h ws t e a et in e g eu t n, mn hc a h n nucmn o ap nweeycto t xilepicswu one e t f la hrb ot n e t r e o ld b c agdindrc rlaio s ipt t eaeaepic o e hne i et e t nh o h vrg r e f rw ot ni 1 Suhr mr es a cto n 0 o t en akt. Ac r in t t eBra o Lbr Saisic we ly cod g o h ueu f a o t t t s ek ine, wo s lecm oit pics gnr llyhv rsn dx hlea o md y r e e ea ae i e 2 prcn snet eot ra o t ewr ad1 pr 2 e e t i c h ubek f h a, n 8 e cn wh t e lat ya. Wile a mjo ct gre e t it in h s er h ll a r aeoi s o cmoii s hv s o nsm pic avne oe f o mdte ae hw o e r e dacs vr t ee pr d, t e dge o pric aio int e gn hs eio s h ere f at ipt n h e ea rs hsvr dge t , a t eacma y gt b rl i e a aie r aly s h co pnin ale i d ae. I cessf o Ag s 2, 13 t Spe br nict s nrae r m uut 6 99 o e t me 2, 14 r ne fr m6prcn fo mt ls admt l 0 91 a gd o e e t r ea n ea po ut t 4 prcn fo fampo ut. Df rne r dcs o 9 e e t r r r dcs ifee cs int eet n o pic avnerf c, o t eoehn, h xe t f r e dac elet n h n a d er a def ci emaue t rsr inpicso mt ls aly n fetv es rs o et a r e f ea adohrcmoii so cit a imot net t edn t e o mdte f r ic l pra c o h e f nepor m O t eohrhn, svrl f coshv e s r ga . n h t e a d eea at r ae oeae t i ces fama df o pic s a ogt ee prt d o nrae r n od r e; mn hs aeepnin cnu e dmn a dt epsaeinMy r x a d g os m e ad n h as g a r o leis t nrq ir gt eCm oit Ce it Cr oa f g laio e u in h o md y rd opr t nt m elon o mjo 14 cosa 8 prcn o io o a as n a r 91 rp t 5 e e t f k pr ypics Avne inpicso imot df o shv ait r e. da cs r e f pre od ae be delaglyt at he in s ipin s ut n en u r e o ig t n g h p g it aio . E m p lo y m e n t a n d P a y r o lls E p y e t inNwYr Saef coie rs 4pr mlomn e ok t t at r s oe e cn fut e i Ag s, a dpyo i cesd6 pr e t rhr n uut n ar lls nrae % e cn. Teegi swr dent o lyt cni udlage t hs an ee u o n o otne r e sa h in a p ns whdf ne odr b t as t cle ir g t la t it ee s r es u lo o epni n o wr in f re a fr s mnf cuin xaso f ok g ocs t i m a uat r g c ilia gos Wmn c t in ad m ey cn iv n od. o e ’s loh g n illinr o cr s md lag saoa a d io s t wr in f re, en ae r e es nl dit n o ok g ocs admn c t in f mcni udt oeaea ah h n e ’s loh g ir s o tne o prt t ig lee A bac e o t emt ls admc i eyinu vl. ll rnhs f h ea n ahnr ds t ia go pe p ydmr wr esinA g s s ipad r l r u mloe oe okr u ut; h yr s adp ns po uin a p ns f er s adt o sel n la t r dc g ir la e, iram n ol t e , rpre t e lags gin. Tis bn’s sao a e ot d h r et a s h a k es nlly a jut di dxs o e p y e t a dpyo i Nw d se nee f mlomn n ar lls n e Yr Saef coie, wi haebsdo dt rpre ok t t at r s hc r ae n aa e ot d b t e Sae Dprmn o Lbr cnine t e y h t t e at e t f a o, o t ud hir sed rs, a i s o nb t eacma y gd ga ;b t a y i e s s hw y h co pnin ia r m y Ag s bt i dxs hdavne fo 1 cneui e uut oh nee a dacd r 6 osc tv mnh. Fcoye p y e thsr e 4 prcn sne o t s at r mlomn a isn 2 e e t i c Ag s, 13, jutpio t t eo t ra o wr wees uut 99 s r r o h ubek f a, hra t ei ces inpyo oe t et oya pro hsbe h nrae ar lls vr h w er ei d a en 8 prcn o a poimt lyt i ea mc , o i gt t e 5 e e t r pr x ae w s uh w o h c n cminto o lagrwr in f re, h hrwg r t s o b ai n f r e ok g ocs ig e ae ae, adlo grwr in hus Bt i dxsaenwa t e n ne ok g o r. oh nee r o t h hg etlee o r c r ;t ee p y e tine inAg s i hs vls n eod h mlomn dx uut ws2 %prcn aoet e12 pa, adt ei dxo a 6 e e t bv h 99 ek n h ne f pyo ws3 prcn hg e. ar lls a 6 e e t i hr Fcoie int eUit dSae a awo rpre in at r s h n e t t s s hle e ot d cesso 1 2 prcn i wr in f re ad3prcn rae f y e e t n ok g ocs n e et United States Bureau of Labor^Statistics Weekly Indexes of Wholesale Commodity Prices Index Percentage change Sept. 20, September 1941 compared with 20, 1941 (1926=100) Sept. 21, 1940 Aug. 26, 1939 Farm products............................................ Foods........................................................ Textile products......................................... Hides and leather products..................... Building materials..................................... Chemicals and allied products............... Housefurnishing goods.............................. Fuel and lighting materials..................... Metals and metal products..................... Miscellaneous............................................. 91.2 88.5 89.2 111.7 106.2 87.8 98.0 80.0 98.7 85.0 + 3 8 .8 + 2 4 .4 + 2 3 .9 + 1 2 .8 + 1 1 .6 + 1 4 .3 + 8.9 + 1 1 .3 + 3.6 + 1 1 .4 + 4 9 .3 + 3 2 .7 + 3 2 .3 + 2 0 .6 + 1 8 .4 + 1 8 .3 + 1 2 .6 + 9 .3 + 5.6 + 1 6 .3 All commodities..................................... 91.5 + 1 7 .8 + 2 2 .3 Raw materials............................................ Semimanufactured articles...................... Manufactured products........................... 89.8 90.1 92.8 + 2 8 .1 + 1 6 .3 + 1 3 .6 + 3 5 .6 + 2 1 .1 + 1 7 .0 77 Factory Employment and Payrolls in New Y ork State, Adjusted for Seasonal Variation and to Census Data (1925-27 a v e r a g e s 100 per cent) 78 MONTHLY REVIEW, OCTOBER 1, 1941 i wg py e t bt enJ lyadAg s. I nit e n ae amns ewe u n uut n e hr cs wr t e gi s s lag a t oe epre cd i Dr gAg s t eine o po ut nadt a ecm ae ee h an o r e s hs xei ne n r od ayyas bcue o t e ecpio a hg rt ptuin t uutkrsdt opinsciot e tr13o r r inr er, eas f h xe t nlly i h ae ue a h bnhoe x f o d fu hn o d p d t is a w t r r 1 e t wi hinut ia at it hda ed r e b J ly cn o etmt dlo gt r t e d wh sr in d o hc d sr l civ y a lra y isn y u . t e r Teewr f rhre p y e ti cessi t ea ca , tec ff si ae et leemcn— 12. tnt gtis hr ee ut e mlomn nrae n h ir r ft a eo t ehg sn vl rahdi it in Iikh w n h ih 99 e mc i e t o ade cr a mc i ey inut ie, bt ya pro f o Ag s, 13 ehn ot jut peeo ahn ol, n let icl ahnr dsr s u er ei d r m uut e 9 ( emnh s rcd 9 t s ipad rpre amc s a r gint a inpe i gt eo t ra o t ewr t Ag s o t isya t e h yr s e ot d uh mlle a hn r n h ubek f h a) o uut f h er h cdn mnh o i gt alao ds uea a Es cat ne dacd2 o t. e i g ot s w o br i pt t n at os n x yr . At mb f coie la of lag nmes o i dhaivneh7pins i dxi Ag s rf ce pi ad uo o ile at r s id f r e u br f Ters i t egnrl ne n uut elet d r e wr esd r gAg s i cneto whmdlc ag- mr as ap( n pa alylaglyt moay s ut okr uin uut n onci n it oe hne aily e n a deo b r e e pr r ) pr hr oes wiler domuat rr i cesdwr in f re i rt il taef o tr b ed hg lee o J ly A vr, h ai a f cues nrae ok g ocs r a f s s ao a . Cneie, woe bsns hs be sim inicadryt eachplri gciat t ego uine es nlly a nr s hs ui es a en t u n et bdh moea yny hh vl r u . dx d ae c ma n r, h p lae b lag Gvr mn prhss addee mr es rn isr t nt cnu e avn d in pin t d y r e oen e t uc ae, de vn oe s r wr est a uul inAg s. Fcoye p y e t a mauugd tpumnosoem sdceeencnoes okr hn s a uut at r mlomn s oe Jily Dibtio t t r sle i a csd e sdt vr . e a e o a nra o i r r awo ws2 prcn aoet elee o Ag s, 14 a lymr t a uul i Ag s adwr aotat ir hle a 3 e e t bv h vl f uut 90 b oe hn s a n uut n ee bu h d adpyo wr 4 prcn get r n ar lls ee 9 e e t rae. lagr t a int e crepnin mnh o lat ya. r e hn h ors o d g ot f s er Tt l c il nngic lt r l e p y e t i t eUit d Cmi e s le o t et omjo mil odrhue r n oa iv o ar u ua mlomn n h n e o bnd a s f h w a r a r e oss a Sae i etmt db t e Lbr Dprmn t hv naly5 prcn aedo Ag s, 14, a ds le o t t s s si ae y h ao e at e t o ae er 0 e e t ha f uut 90 n a s f rsn 2 0 0 in Ag s t a t t l o a poimt ly vr t adgoey c ans se s wr aot 2 pr i e 6 ,0 0 uut o oa f pr x ae aiey n r cr hi yt m ee bu 5 e 3 ,5 0 0 pros Alag pr o t ei ces oc re cn get r Ahuhrt ilsle o nw asne cr 9 0 ,0 0 es n. r e at f h nrae curd et rae. lt o g ea a s f e pse gr as i mnf cuin inut ie, b t wo s le adr t il wr sm hthg e t a i t epeio sAg s, t ee n a uat r g dsr s u hlea n ea ee o e a i hr hnn h rv u uut hr w t ae et bs mns adcntut nfr s a o md wsas apdc n f o J ly o i gt c agoe t r d sali h e t n o sr cio i m ls ae a hr eli e r m u , w o hnevr o n szb a d io s t wr in f re. Cmae wh nwmdls i ale dit n o ok g ocs o prd it e oe . Ag s aya ao3 0 ,0 0mr proswr e p yd Rf cin t ecni udi pt s o t edf nepo uut er g, ,6 0 0 oe es n ee mloe g o e innngic lt r l oc pto s Teamdf re ( o gaeleupto potne’ dreu gfd avecdino o ar u ua cuai n. h r e ocs nt r mot u h r d cr m b o h da s r , t f ues uale os ne t inlue in t e aoe et ae) t t le 1 5 ,0 0 i nw i hgo n inA g s t ea ca , mc inr , ad c dd h bv simt s oa d ,9 0 0 n e hg r ud u ut; h ir r ft ah ey n Ag s, a i ces o 1 0 ,0 0oe Ag s, 14. uut nnrae f ,4 0 0 vr uut 90 ohr‘‘df ne’’ i dsr ss o e f rhrgin, adt e t e ee s nut ie hwdut e a s n h selm cnine t oeaea na c pc y O t e t e ills ot ud o prt t er a ait . n h ohrhn, o t u o po ues nnualegosad t e a d upt f r d cr’ o dr b od n o c nu es dr b gosdc e bt enJ lyad r u elin Pe inr dt fo Spe brinict acnina Ag s, saoa fat r odidrdPo uteno ctn r lim ay aa r e t me d ae o t u f o s ms’ l a lescn ee . d ewio u ot n uut e n co o s t no t e hg r t o bsns at it . Ds it in adwo t xile wssm htlo e r dc t efrco io f h i h ae f ui es civ y ep e ol t wa h a d cesn cnenoe at a adpopci e s ot gs in mnhaddli ei sefs twrmsiin h peef rai g ocr vr cul n r s etv hrae n ot en s aro o ilk odten m fe of g ev e o tc ills ll o selsr pt eselm cni udt oeaec s t t o ly b t n t t f t e u aef llo in t f t e ca, h t e ills otne o prt loe o o eh ly t w h fu r t dc pc y in Spe br Po ut n o nw foengafu oecnbohhfJeorPoocio gae ll ae a ait e t me. r dcio f e in t sy fc t n mdl at mble rs sed inSpe br f llo in aemn o rilksokmnh Ose grrauup t ws oe uo oi s oe t a ily e t me, o w g reze t e s int e ot ePisnf cdo tnMa g aly h t . a e r u t ec agoe pr dinAg s, b t o in t Gvr s ap rdcdincneto wht e c a goe t h hnevr eio uut u, w g o oen hr ly e u o t o mn rsr t n o t eo t u o pse grcr, t t l po ut no ee mdn,cin oieai n hnevrn e t et icio s n h upt f asne as oa r dcio f nw oe an pr th sint efu ils d o h r asmli s wr cni ealylo e t a inSpe br se be ee o sdr b wr hn e t me, 14. TeOi eo Po ut nMngmn anucd 90 h f c f r dcio a ae e t none f t a Dcme po ut n o pse gr cr hs be ht ee br r dcio f asne as a en sta 4 %prcn lest a o t u inDcme, 14. e t 8 e e t s hn upt ee br 90 Tisqoat gt e wht e2 %prcnc tpeio s h ut , oehr it h 6 e e t u rv uly odrdfo t eAg s-Nvme pr d w r s lt i r ee r h uut oe br eio , ill eu n a oe-a c ra e t fo t ef s fv mnh o t e n vr ll ut ilmn r h irt i e o t s f h 14 mdl ya o 3 pr cn. Po ut n o lig t 92 oe e r f 2 e e t r dcio f h tuk fo nn ilit r pr oe fo t epr dAg s r c s r o m ay upss r h eio uut t r uhNvme hsbe lime t 9 prcn o t e ho g oe br a en it d o 1 e e t f h o t u int ecrepnin mnh o latya. upt h ors o d g ot s f s er Cto t xilem aerpre t hv mi t i e ot n e t ills r e ot d o ae anand oeaio s a a et e e h hr t inSpe br a pr t n t n xrmly ig ae e t me, l t o g t evlu eo sle o ga goswss a o i g huhh o m f a s f r y od a mll, w n t t euw g es o m t bo a d io a odr o h n illinns f ills o ok dit nl r es aducra t soe pic cilins Ao n t em d n net inie vr r e e g. r u d h idle o t e mnhlod g o r ilwy fr ig t rahdt e f h o t a ins f a a e h ec e h hg et we lyt t l snet efa o 13, ade cr i hs ek oa i c h ll f 90 n letic pwrpo ut nado t u o cuept o u rs t o e r dcio n upt f r d er le moe o nweodlee . e rcr vls P r o d u c t io n a n d T r a d e in A u g u s t P r o d u c tio n a n d T r a d e 1927 1928 1929 1930 1931 1932 1933 1 93 4 1935 193 6 1937 1938 1939 1 9 4 0 1941 Index o f D istribu tion to C onsum er (F ed eral R eserve B ank o f N ew Y o rk index, expressed as a percentage o f estim ated long term trend, and ad ju sted for seasonal variation ) FEDERAL RESERVE BANK OF NEW YORK 79 lt o g lms ll lasfcto s ae hw t r inut y i cesdles t a uul oe t e rla Ahuh a ot a c sii ai n hv s o n in ue dsr nrae s hn s a vr h e cessinvlu edr gt eps ya, t eehs be rae o m uin h at e r hr a en t e h hJ lylee ivly ig u vl. as ift int e rlaiv imot ne o vr u t ps o h h e t e pra c f aio s y e f cntuto wr o i gt t ent r o df nerqir o sr ci n ok w o h aue f ee s e u e n mns Frea p , a ad fo rs e t lb ild gad e t. o xmle wr s r eidnia u in n pb wr s po cs hv acut dfo s a r pr ulic ok r jet ae cone r mlle e cnae o a cnr csa adds fa t i ya t a i e t gs f ll o tat wr e o r hs er hnn t ecrepni gpr do 14. O t eohrhn, t e h ors o dn eio f 90 n h t e a d h po ot n o a cnr cswic hv be a addf r r prio s f ll o tat h h ae en wr e o uilit s cntuto (pric laly e cr pwr ad t ie o sr ci n at u r letic o e n lig tpo csada prs a dfo nneidnia b ild h r jet n ir ot ) n r o rs e t l u in hv s o ni cess g ae hw nrae. Wh t enneidniab ild ggo pw ec ags it inh o rs e t l u in r u, i hne d int erlaiv imot neo vr u t ps o b ild g h e t e pra c f aio s y e f u in hv oc re , a i s o nint eacma yn c at ae curd s s hw h co pni g hr. Wile t e dlla vlu o a ad fo pb pr oe h h o r a e f wr s r ulic ups b ild g s o e litle nt c ag bt ent e f s 8 u in hwd t e hne ewe h irt mnh o 14 a dt ecmaalepro o 14, ohr ot s f 90 n h o prb ei d f 91 t e nneidnia b ild ga ad wr a ot fo r tms o rs e t l u in wr s ee lms u i e a lag. Fo Jnayt r uhAg s o 14 pb s r e r m a ur ho g uut f 90 ulic pr oeb ild gacut dfo t elags s g s ae ups u in cone r h r et inle hr o nneidnia b ild g (3 pr cn); cmeca f o rs e t l u in 9 e e t o m i l r admnf cuin b ild g ec a one t alitle n a uat r g u in ah mut d o t udr oet ir o t e go pt t l. I t ef s eg t ne n h d f h r u oa n h irt i h mnh o t isya, hwvr a ad fo pb pr oe ot s f h e r o ee, wr s r ulic ups a dcmeca b ild ghv ec rpee t do lyoe n o mri l u in ae ah e rsne n n fift o a nneidnia b ild gcnr cs wi fa h f ll o rs e t l u in o tat, hle c t r cntuto ( e r hlf o wi hws acut d oy o sr ci n naly a f hc a cone fo b Gvr mn c nr cs hs md u a poi r y oen e t o t at) a ae p pr x mt ly 5 pr cn o t e t t l. Gvr mn df ne ae 0 e e t f h oa oen e t ee s a ad pimr acutfo t ei ces int emcl wr s r aily co n r h nrae h ise laeu c sifcto fr m4t 1 prcn o t et t l. nos las i ai n o o 0 e e t f h oa A ars lto t ehaydmn o b ild gs plie, s eu f h ev e ad n u in up s cue b t edf nepor ma odrga t gpioi asd y h ee s r ga , n r e r nin r r te o cit a mt r lsfo cra t pso pivt rs i s n r ic l aeia r et in ye f r ae ei dnia b ild g indf ne aes adfo Gvr mn e t l u in ee s ra n r oen e t hui gpo cs fo wr es i df neinut ie ws o sn r jet r okr n ee s dsr s a (Adjusted for seasonal variations and estimated long term trend; series reported in dollars are also adjusted for price changes) 1941 1940 August June July August Index of Production and Trade....................... Production of: Producers’ durable goods....................... Producers’ nondurable goods................. 93 110 lllp 113p 93r 97r 123 121 126p 121p 131p 117p Consumers’ durable goods..................... Consumers’ nondurable goods............... 73 94 104 105 103p 105p 96p 104p Primary distribution.................................... Distribution to consumer........................... 90 98r 104 104 105p 107p 105p ll6p Industrial Production Steel................................................................. Automobiles................................................... Bituminous coal............................................ Crude petroleum........................................... Electric power............................................... Cotton consumption.................................... Wool consumptionr.................................... Shoes............................................................... Meat packing................................................ Tobacco products......................................... 112 56 96r 86 100 lllr 109 lOlr 97 89 126r 131 125 87 113 149r 196 133 105 99 126r 150 130 86 112 155r 179 133p 106 96 125 104 ll7 p 90p 115p 152 I64p 119p 110 97 Manufacturing Employment Employment.................................................. Man-hours of employment......................... 97r 93r 116 119 120 122 119p 121p Construction Residential building contracts................... Nonresidential building and engineering contracts..................................................... 60 67 73 82 75 88 93 137 Primary Distribution Ry. freight car loadings, mdse, and misc. Ry. freight car loadings, other.................. Exports........................................................... Imports........................................................... 85 94 113 80 103 117 103 94 103 116 114p 91p 103 114 Distribution to Consumer Department store sales (U.S.)................... Grocery chain store sales............................ Variety chain store sales............................. Mail order house sales................................. New passenger car sales r ........................... 96 99 106 103 80 99 99 108r 108 118 108 99 108 111 104r 125 103p 126 131 90p Velocity of Deposits* Velocity of demand deposits, outside New York City (1919-25 average = 100)----Velocity of demand deposits, New York City (1919-25 average = 100)............... 53 60 57 61 23 27 26 27 Cost of Living and Wages* Cost of living (1935-39 average = 1 0 0 )... Wage rates (1926 average = 100)............. 104 114 108 122 109 123 IlOp p Preliminary. r Revised; in the cases of wool and new passenger car sales, the series have been revised. * Not adjusted for trend. M ILLIO N S o r D O LLARS B u ild in g Dr gAg s t edilyr t o cntuto cnrc uin uut h a ae f o sr ci n otat a ad fo 3 EsenSae rs 8 prcn aoet e wr s r 7 at r t t s oe 3 e e t bv h f uefo Ag s, 14 t t ehg etlee ina ymnh igr r uut 90 o h i hs vl n ot cvrdb t eF W DdeCr oaio rcr swi h oee y h . . og opr t n eod hc bgnin12. A ad fo rs e t l b ild gwr t e ea 95 wr s r eidnia u in ee h lags sne A r 12, a dnneidnia b ild g r et i c pil, 99 n o rs e t l u in cnr cswr a adda t ehg etrt o rcr . o tat ee wr e t h i hs ae n eod Cnr c a ad fo df ne pr oe hv be a o tat wr s r ee s upss ae en c cut gfo a inrain po ot no nwcntu o nin r n ces g r prio f e o sr c to po cs Alitleoe hlfo t ecnr csi c dd i n r jet . t vr a f h o tat nlue int et t lsfo Ag s wr Gvr mn a ad cn h oa r uut ee oen e t wr s o nce wht edf nepor m Tiscmae wh4 et d it h ee s r ga . h o prs it 2 pr cn fo s c a ad inJ ly ad2 pr cn in e e t r uh wr s u n 2 e e t Ag s o latya. uut f s er Nonresidential Building Contracts Awarded in 37 States During First Eight Months of 1940 and 1941, Classified by M ajor Groups (Based on F. W . Dodge Corporation data) MONTHLY REVIEW, OCTOBER 1, 1941 80 anucdo Spe br1 b t eOi eo Pouto Fo we lyrprs gt ee f o as a rlis o none n e t me 9 y h f c f r dci n r m ek e ot ahrd r m mlle t f f Mngmn. Pioit sudrt is odraeshdle soe, it apas t a t e gi s oe aya peio s a ae e t r r ie ne h r e r c eu d t rs per ht h an vr e r rv u fo a poimt ly 20 0 pivt ly f acdd e g wr lags er i Ag s a d t eefe rcdd r pr x ae 0 ,0 0 r ae inne wllin ee r et aly n uut n hr at r ee e uis ad 10 0 uit fnne b t e Gvr mn, ga ullyt r uht ermine o t emnha di t nt n 0 ,0 0 n s i acd y h oen e t r d a ho g h e a dr f h ot n no wi ht gt e aeeult mr t a hlf t eetmt d Spe br A acleai no sle aa oc re i hc oehr r qa o oe hn a h si ae e t me. n ce r to f a s gin curd n nme o nw o f r d e guit poiddin14 t elat r pr o Spe br i a t ipt no ecs u br f e nnam wllin n s r v e 90 h te at f e t me n nic aio f xi e f r t e e t e cut y I t e nneidnia b ild g t xsef civ Ot br 1 b t fo t emnha awo o h nir o nr . n h o rs e t l u in ae fet e coe , u r h ot s hle f ldt e S p ly Pioit s adA c t n Badhs s le fa dt s o a mc epni noe Ag s a ie h u p r r ie n lloaio s or a a s ile o hw s uh x a so vr uut s t knt eps io t a t eepni no po csfo nn uullyoc r, a huhiti et ae t a aeaedily ae h oit n ht h xa so f r jet r o s a cus lt o g s simt d ht vr g a df ne pr oe i udsr b if t e rqi e lag s le ecee t oeo Spe bro latya b a poi ee s upss s nei ale hy eur r e a s xeddhs f e t me f s er y p r x a onso mt r lsnee int edf nepor m mut f aeia edd h ee s r ga . mt ly1 prcn. ae 3 e e t I Nw okadNrhr NwJre t edilyrt n e Yr n ot en e es y h a ae h m us nia ce e le ewe u s, a o cnt ut ncnr c a ad dr gAg s wsaot 1Tenotsutaft liyrrscura inst eo Asuy f o sr cio o tat wr s uin uut a bu 90adsu btoth n a osinsdsba s nh grt, 4 Ag s is e c re le f oie o e h daoet e crepni gmnho lat ya. udr er fus adf r r mdcas hm fun h n-t ir bv h ors o dn ot f s er newa, r Ot emjo c siict n, a ad fo rs e t lb ild ins adhue o npu-tcs e ot, o e r is f h a r lasf aio s wr s r eidnia u g, n oshlda p nim lia e. in,wi h aeu alitleoe hlfo a a ad,s o e g hc md p t vr a f ll wr s hwd ea t cs f ec ads n a d h e ot g t e lags ya-t -ya i ces, a o ni g t 4 pr Rt il sok o mrhni eo hn int erprin h r et e r o e r nrae mutn o 0 e cn. A ad fo nneidnia b ild gwr u oe dprmn soe a t ee do Ag s wr 2 prcn e t wr s r o rs e t l u in ee p n e at e t t rs t h n f uut ee 6 e e t t ir , wi haye g er gpo cs wr aot u hg e t a a t ee do Ag s, 14, a dwr a o h d hle ev ninein r jet ee bu n i hr hn t h n f uut 90 n ee ls cni ealylagrt a a t ee do J lyds iet e o sdr b r e hn t h n f u ept h c agd hne . h hr t o s le inAg s. Rt r s f o alime ig a e n O t ecnr csinlue i t emnh t t lfo Nw nme o dprmn sue int isuisr r ini aet a f h o tat c dd n h o t ’s oa r e u bae f atse t t rut h D t ic m ct it d rf e os Yr a dNrhr Nw esy o ly1 prcn rpe o tt nin odr fo mrhni e prtad b he ok n ot en e Jre, n 4 e e t e r usa d g r es r ec ads uc sd y t t h sne Gvr mn cnr csfo df nepr oe. Tis soe, btntytdlivrd wr oe t i ea lag h e t d oen e t o tat r ee s upss h t rs u o e e ee , ee vr w e r ea c s s cmae wh4 ad1 prcn, r s et e , fo Jn t oeo Ag s 3, 14. o prs it 6 n 8 e e t epcivly r ue hs f uut 1 90 a dJ ly n u. Percentage changes from a year ago D e p a r tm e n t S to re T r a d e A i ohrsci n o t ecut y rt il t aeint e s n t e etos f h o nr , ea r d h Scn Fdr lRsreD t ic wsecpio a atv eod e ea eev isr t a xe t nlly ci e dr gAg s. Sle o dprmn soe rprin t uin uut a s f e at e t t rs e ot g o t isbn, o a aeaedilybs , wr a poimt ly h ak n n vrg a ais ee pr x ae o e h dlagrt a inAg s o lat ya a daot n-t ir r e hn uut f s e r n bu 2 pr cn get r t a inJ ly a inict do t e 5 e e t rae hn u , s d ae n h acma yn c at Wilemdrt i cessinsle co pni g hr. h oeae nrae a s c aat r t a oc r bt enJ ly adAg s, t e hr ceisic lly cu ewe u n uut h mnho o t avne t i ya ws t e lags r o t -t -mnh dac hs er a h r et e cr e snet isbn bgnit wr o cllet gdpr odd i c h ak ea s ok f o cin e at mn soes le f ue mr t a t e t yasao e t t r a s ig rs oe hn wny er g. PER CEN T Net sales Stock on hand end of month Department stores August, 1941 Jan. through August, 1941 August, 1941 +26 +30 +29 +38 + 43 +22 + 23 + 32 + 29 +40 +38 + 41 + 12 +16 +15 +23 +27 + 13 +15 +20 +1 6 +23 + 27 +23 +25 +25 +23 + 47 + 39 +2 2 New York City (includes Brooklyn). . . Northern New Jersey............................... Newark.................................................... Westchester and Fairfield Counties. . . . Lower Hudson River Valley................... Poughkeepsie.......................................... Upper Hudson River Valley................... Central New York State......................... Northern New York State....................... Southern New York State....................... Binghamton .......................................... Western New York State........................ Niagara Falls.......................................... — +4 4 +43 +6 0 +38 +45 +37 +30 — +35 — +35 +34 +36 — — +23 +23 +23 +34 + 21 + 27 +13 +15 — +25 +27 +21 +24 — All department stores........................... +30 +15 +26 Apparel stores............................................. + 39 +12 + 29 Indexes of Department Store Sales and Stocks, Second Federal Reserve District (1923-25 average=100) 1941 1940 August August Sales (average daily), unadjusted................. Sales (average daily), seasonally adjusted.. Stocks, unadjusted............................................ Stocks, seasonally adjusted............................. Index o f Dollar Volume o f Sales o f Reporting Department Stores in Second Federal Reserve District, not Adjusted for Seasonal Variation (1923-25 average= 1 0 0 per cent) r Revised June July 76 101 98 102 81 114 101 134 85 90 83 96 98 103 79r 83r FE D E R A L RESERVE B A N K OF N E W Y O R K MONTHLY REVIEW, OCTOBER 1, 1941 Business Conditions in the United States (Summarized by the Board o f Governors o f the Federal Eeserve System) I N D U STRIAL activity increased further in August and the first half o f September, and commodity prices continued to advance. Distribution o f commodities to consumers expanded considerably. Index o f P h ysical V o lu m e o f Industrial Produc tion, A d ju ste d for Seasonal Variation ( 1 9 3 5 -1 9 3 9 a v e r a g e ^ 1 OO per cen t) Index o f Total Loadings of R evenue F reight, A d ju ste d for Seasonal Variation ( 1 9 3 5 -1 9 3 9 a v e r a g e = 1 0 0 per c e n t; m iscellaneous, coal, and all other car loadings expressed in term s o f points in total index) U . S . B ureau o f Labor S tatistics Indexes o f W h o lesa le P rices, B ased on 12 F o odstuffs and 16 Industrial M aterials (A u g u s t, 1 9 3 9 = 1 0 0 per cen t) CN ET pen C N ET TFtEASURY 'HONOS j ^ < * \A v A , r 'W jk , k J TREASURY NOTES I V T“ ' ’W v \i / * v js TREASlJRY BILLS • * v . - 1935 1936 1937 1938 1939 1940 M oney Rates in New Y ork City 14 91 P roduction In August industrial output increased somewhat more than seasonally and the B oard’s adjusted index advanced from 160 to 161 per cent o f the 1935-39 average. There were sharp further advances in activity in the machinery, air craft, shipbuilding, and railroad equipment industries. Lumber production also increased, while furniture production, which had been unusually large in July, showed less than the customary seasonal rise in August. Output o f steel and nonferrous metals continued at near-capacity rates. In the automobile industry output o f finished cars declined sharply as plants were closed during the changeover to new model production and output in factories producing bodies and parts also was reduced considerably. In the first half of September automobile assemblies increased as production o f new models was begun but from now on, owing to Government restriction on passen ger car production, output will be considerably below that during the previous model year. In most nondurable goods industries production in August continued around the high levels reached earlier this year. A t cotton mills activity declined slightly from the record level reached in July, while at woolen mills there was some increase. Rayon output continued at peak levels. In the silk industry operations were curtailed sharply, as the Government requisitioned all supplies o f raw silk, and deliveries o f silk to mills declined from 28,000 bales in July to 2,000 in August. Rubber consumption also decreased, owing to a Government curtailment program. Shoe production, which had been unusually large, increased less than seasonally in August, and output o f manufactured food products and chemicals showed seasonal increases from the high levels prevailing in June and July. A t mines coal production in August, as in other recent months, was unusually large for the season, and output o f crude petroleum rose to a record level o f 4,000,000 barrels daily in the latter part o f the month. Iron ore ship ments down the Lakes amounted to 11,500,000 tons, the largest monthly total on record. Value o f construction contract awards showed a further sharp increase in August and was about four-fifths larger than a year ago, according to F. W. Dodge Corporation reports. The rise from July was substantial for all general types o f construction but was most pronounced for publicly financed projects. Awards for residential building continued to increase. D istribution Sales o f general merchandise rose sharply in August and were at an T extremely high level for this time o f year. The B oard’s seasonally adjusted index o f department store sales advanced to 133 per cent o f the 1923-25 average as compared with 115 in July and an average o f 103 in the first half o f this year. In the early part o f September department store sales declined from the peak reached in the latter part o f August. Railroad freight car loadings in August were maintained in the large volume reached in June and July. Coal shipments increased, following some reduction in July, while loadings o f grain, which had been large since last spring, declined. Commodity P rices Wholesale prices o f most groups o f commodities continued to advance from the middle o f August to the middle o f September. Prices o f grains, other food stuffs, and cotton showed large increases and there were advances also in prices of a number o f industrial commodities not covered by Federal price ceilings. Fragmentary data available indicate that retail prices of foods and other commodities rose further during this period. A griculture The outlook for agricultural production in 1941 showed little change during August. Crop prospects were reduced slightly by drought but aggregate crop production is expected to be two per cent larger than last year and the largest for any year except 1937. Total marketings o f livestock and livestock products will probably be the largest on record. Preliminary estimates o f the Depart ment o f Agriculture indicate that cash farm income, including Government payments, will be about $10,700,000,000, compared with $9,120,000,000 in 1940. B ank Credit Commercial loans at reporting member banks in 101 cities continued to rise substantially during the four weeks ended September 10. Bank holdings o f United States Government securities showed little net change, while holdings o f other securities increased somewhat at New York City banks. As a result o f the expansion in loans and investments bank deposits continued to increase. U nited States Government Security M arket Prices o f Treasury bonds increased in the latter part o f August but subse quently declined somewhat in the first part o f September. On September 15, the partially tax exempt 2% per cent 1960-65 bonds were yielding 2.06 per cent compared with the record low yield o f 2.02 per cent. Yields on Treasury notes showT little change in the period. ed
