The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW o f Financial and Business Conditions F if t h F ederal Reser v e district Federal Reserve Bank, Richmond, Va. April 30, 1940 Summary of March Business Conditions A R C H witnessed a larger volume o f retail distri bution than March last year, and industry was at about the same relatively high level as a year ago, but seasonal increases over February were in most instances note quite up to expectations. to equal March 1939 figures. Contracts actually awarded made the same comparison, except that the March increase over February was smaller and the decrease from March last year was larger than the building permit comparisons. Cotton consumption last month in Fifth district mills was lower than in March last year, but rayon yarn production and shipments were both larger. Coal production de clined further, but on a daily basis was still slightly higher in March 1940 than a year earlier. Changes in construc tion work, textile operations and coal mining resulted in some net decline in employment in the Fifth district in March. M R E T A IL D ISTR IBU TIO N LA R G E Department store sales in the Fifth district in March rose 36 per cent above February sales, and were 5 per cent above March 1939 sales, but most o f the increase over last year was due to the earlier date o f Easter this year. Because o f cold weather, Easter trade was not up to normal volume. Retail furniture sales were moderately higher in March than in either February 1940 or March 1939, and sales of new passenger automobiles last month were the largest for any month since July 1937. A t wholesale, distribution o f goods in March was a little higher than in the corresponding month last year. F A R M W O RK LA TE Farm work has been delayed this year by unfavorable weather, and fall planted grains are in poorer condition than a year ago. The cold weather held back premature development o f fruit buds and probably prevented damage to apples which frequently occurs in mild winters and springs. It appears that some peaches were seriously damaged by A pril freezes, but the district average con dition is good. Sowing o f oats has gone forward rapidly in the past few weeks, and in the extreme southern part o f the district some cotton has been planted. E M PLO Y M E N T DECLINES M O D E R A T E L Y The value of building permits issued in March showed a substantial increase over February valuations, but failed BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT March 1940 Debits to individual accounts (25 cities).... Sales, 31 department stores, 5th district.... Sales, 38 furniture stores, 5th district....... Sales, 200 wholesale firms, 5th district..... Registrations, new autos, 5th district......... $1,342,709,000 9,965,594 $ 1,049,111 $ $ 12,559,000 21,989 Number of business failures, 5th district.... Liabilities in failures, 5th district................. Value o f building permits, 31 cities........... Value of contracts awarded, 5th district.... Cotton consumption, 5th district (Bales)...- $ $ $ Cotton price, cents per lb., end o f month.. Print cloths, 39 in., 80x80s, end o f month... Rayon shipments,. U S. (Pounds)................ Rayon yarn stocks, U. S. (Pounds)........... Bituminous coal mined, U. S. (T o n s)......... 44 500,000 11,633,318 31,542,000 305,494 10.50 6.50 29,500,000 10,100,000 35,400,000 February 1940 $1,189,136,000 7,334,877 $ 986,806 $ $ 11,837,000 15,581 $ $ $ 46 584,000 7,092,770 29,605,000 319,601 10.74 6.63 29,500,000 8,300,000 39,105,000 March 1939 $1,242,366,000 9.489,258 $ $ 995,135 $ 12,386,000 17,800 $ $ $ 59 560,000 11,904,407 38,946,000 310,642 8.48 26.600,000 41,400,000 35,438,000 % Cha,nge Month Year -f44+ + 13 36 6 6 41 4~ 8 + 5 + 5 4- 1 4- 24 — 4 — 14 + 64 4- 7 — 4 — 25 — 11 — 2 — 19 __ 2 — 2 9 4- 24 0 4- 22 — 9 4- 11 — 76 0 MONTHLY REVIEW 2 RESERVE BANK FIGURES SHOW L ITTLE CH A N G E Total earning assets o f the Federal Reserve Bank of Richmond rose slightly between March 15 and April 15, small advances occurring in discounts held, industrial ad vances and Government security holdings. Federal R e serve notes in circulation declined seasonally, and member bank reserve deposits were reduced during the month. RESERVE BAN K STATEMENT ITEMS Fifth District 000 omitted Apr. 15 Mar. 15 ITEMS 1940 1940 Discounts held ........................... ................. Foreign loans on g o l d ............. ................. Open market paper ................. ................. Industrial advances ................. ................. Government securities ........... ................. Total earning assets ........... ................. Circulation of Fed. Res. notes ................. Members’ reserve deposits . . . ................. Cash reserves .............................. ................. Reserve ratio .............................. $ 175 43 0 915 125,871 127,004 218,615 286,730 439,752 Apr. 15 1939 $ 113 86 0 909 125,583 126,691 221,028 296,184 443,536 78.28 $ 260 0 24 1,177 134,227 135,688 195,287 250,7% 367,824 73.92 M EM BER BANK SE CU R ITY H OLDIN GS DECLIN E Forty-one regularly reporting member banks in 12 Fifth district cities increased loans slightly between March 13 and April 10, but investments in securities dropped substantially, principally in one large bank. Reserve bal ances and cash in vaults also declined during the period, but both demand and time deposits increased. SELECTED ITEMS— 41 REPORTING BANKS Fifth District 000 omitted ITEMS Apr. 10 Mar. 13 1940 1940 Loans & discounts ................................ Investments in securities ................. Reserve bal. with F. R. b a n k ........... Cash in vaults ........................................ Demand deposits .................................... Time deposits ........................................ Money borrowed .......................................... $268,947 412,303 190,291 22,146 543,935 201,144 0 Apr. 12 1939 $237,298 428,735 162,850 20,684 477,751 200,421 0 DEBITS IN CREASE SE A SO N A LLY CITIES Maryland Baltimore ............. Cumberland ........ Hagerstown ........ % of Change Month Year $ 391,008 8,213 9,326 $ 343,749 7,454 7,456 $ 340,906 7,821 8,222 + 14 + 10 + 25 + 15 + » + 13 Dist. of Col. Washington 287,345 239,885 272,053 + 20 + Virginia Danville ............... Lynchburg ........... Newport News .. Norfolk ................. Portsmouth ......... Richmond ............. Roanoke ............... 8,019 15,844 11,519 51,227 4,479 141,849 28,527 7,609 13,522 11,067 45,217 3,976 140,191 25,801 7,089 13,439 8,893 50,447 4,260 139,432 30,089 + + + + + + + 5 17 ^ 13 13 1 11 + 13 + 18 + 30 + 2 + 5 + 2 — 5 West Virginia Charleston ........... Huntington ........ Parkersburg ......... 47,474 17,102 10,344 46,355 15,441 8,290 45,373 16,366 8,884 + 2 + 11 + 2!J + 5 + 4 + 16 North Carolina Asheville ............. Charlotte ............. Durham ............... Greensboro ........... Raleigh ................. Wilmington ......... Winston-Salem . . 12,500 69.942 26,575 21,145 44,158 11,325 43,909 11,547 61,375 27,885 18,745 34,973 10,316 35,247 12,035 58,816 26,375 20,422 44,645 10,300 41,275 + 8 + 14 — 5 + 13 + 26 + 10 + 25 + 4 4-19 + 1 + 4 — 1 + 10 + 6 South Carolina Charleston ........... Columbia ............. Greenville ............. Spartanburg District Totals . . . 20,651 29,232 20,075 10,921 $1,342,709 17,695 25,934 19,664 9,742 $1,189,136 16,938 30,428 18,530 9,328 $1,242,366 + + + + + + 22 — 4 + 8 + 17 + 8 M U T U A L SA VIN G S RISE FU R TH E R Mutual savings in Baltimore continue to set new rec ords, and 10 mutual savings banks in that city had de posits totaling $223,163,689 on March 31, 1940, com pared with $222,888,548 on February 29, 1940, and $219,931,668 on March 31, 1939. Deposits in 2 o f the 10 banks declined during the year, however. C O M M E R C IA L FA ILU RES F A L L Bankruptcies in the Fifth district and the United States were reported for several periods by Dun & Bradstreet as follow s: Number of Failures District U. S. PERIODS Total Liabilities District U. S. March 1940 .............................. February 1940 ....................... March 1939 ............................ 44 46 59 1,197 1,042 1,322 $ 500,000) 584,000 560,000) $11,681,000 13,472,000 19,002,000 3 Months, 1940 ..................... 3 Months, 1939 ..................... 148 192 3,476 4,091 $1,663,000 1,647,000 $40,432,000 53,374,000 E M P L O Y M E N T IN IN D U STR Y DECLINES $264,196 446,193 195,333 22,483 538,986 200,459 0 DEBITS TO INDIVIDU AL ACCOUNTS 000 omitted Mar. Mar. Feb. 1940 1939 1940 Debits to individual, firm and corporation accounts in 25 Fifth district cities in March 1940 were 13 per cent higher than debits in February, and 8 per cent above those in March last year. Newport News again led in percentage gain over 1939 figures, but Raleigh showed the largest percentage increase over February. 6 Employment in the cotton textile industry declined in the district in March, probably more in aggregate pay rolls than in the number o f workers, and the same may be said o f employment in bituminous coal fields. On the other hand, a seasonal increase in building permits issued and contracts awarded increased the amount o f work available in construction fields. On the whole, there was apparently a moderate net decrease in payrolls and a small decline in the number of employed persons in March in comparison with February. The following fig ures, compiled for the most part by the Bureau o f Labor Statistics, reflect the trends o f employment and payrolls in the Fifth district from February to M arch: Percentage change from Feb. 1940 to March 1940 In number In amount on payroll of payroll STATES .................................. +1.3 Dist. of Columbia .................................. West Virginia ............. .................................. North Carolina ........... .................................. South Carolina ........... .................................. + — — — 0.6 0.3 1.0 0.7 + + — — — 2.7 1.6 0.9 3.0 1.4 1.3 AU TO RE G ISTRATION S A D V A N C E 17 13 2 12 13 Registrations o f new passenger automobiles in the Fifth district rose 41 per cent in March in comparison with February, and were 24 per cent above March 1939 registrations. Last month’s increase in sales over those in February was up to seasonal expectations, and prob ably reduced dealers’ stocks o f cars which had increased in February. The number o f new cars sold in the Fifth district last month was the largest for any month since July 1937. The following registration figures for new passenger cars were furnished by R. L. Polk & Cov o f Detroit: 3 MONTHLY REVIEW REGISTRATION OF N EW PASSENGER CARS— NUMBER STATES Maryland ........... Dist. of Col.......... Virginia ............. West Virginia . . No. Carolina . . . So. Carolina . . . District ........... Mar. 1940 Mar. 1939 5,337 3,087 3,862 2,460 4,415 2,828 4,646 2,761 2,996 1,584 3,445 2,368 + + + + + + 15 12 29 55 28 19 11,669 6,434 10,838 6,329 12,355 7,605 9,429 6,181 8,645 4,337 9,857 6,017 21,989 17,800 + 24 55,230 44,466 C O N STR U C TIO N % Change 3 Months 3 Months 1939 1940 T E X T IL E M ILLS REDUCE O U TPU T r/c Change + + + + + + 24 4 25 46 25 26 + 24 SHOWS SE ASO N AL RISE Building permits issued in March 1940 in 31 Fifth district cities totaled $11,633,318, a seasonal increase of 64 per cent over permits totaling $7,092,770 issued in February this year but 2 per cent less than $11,904,407 in permits issued in March 1939. Permits in the first quarter o f 1940 totaling $23,713,468 were 19 per cent less than $29,388,292 in the first quarter o f 1939. Balti more led in March 1940 permits with $4,736,694, W ash ington was second with $2,634,995, Raleigh third with $774,300, Richmond fourth with $680,162, and Charles ton, W . Va., fifth with $269,532. Contracts actually awarded in March for construction work in the Fifth district totaled $31,542,000, an increase o f 7 per cent over $29,605,000 in February but a decrease o f 19 per cent from $38,946,000 in March last year. Total awards in the district in the first quarter o f 1940 amounted to $83,163,000, a decrease o f 5/10ths o f 1 per cent below $83,612,000 in the first quarter o f 1939, but a larger figure than in any other first quarter since 1930. F. W . D odge Corporation reports contract awards by states as fo llo w s: CONSTRUCTION CONTRACTS AW ARDED STATES Maryland .......................................... Dist. of Col........................................ Virginia .......................................... West Virginia ................................ North Carolina .............................. South C a rolin a................................ District ........................................ March 1940March 1939 % Change $11,905,000 $ 7,259,000 + 64 4,007,000 6,783,000 — 41 7,057,000 8,158,000 — 13 2,020,000 1,790,000 + 13 4,216,000 9,039,000 — 53 2,337,000 5,917,000 — 61 $31,542,000 $38,946,000' — 19 C O AL M IN IN G DECLINES FU R TH ER Production of bituminous coal in the United States in March totaled 35,400,000 net tons, compared with 39,105,000 tons mined in February 1940 and 35,438,000 tons in March 1939. On a daily basis, however, production o f 1,362,000 tons per working day in March 1940 was higher than production o f 1,313,000 tons per day in March last year. Total production this calendar year to the end o f March of 119,445,000 tons exceeds production o f 105,453,000 tons to the same date in 1939 by 13.3 per cent. Shipments o f coal through Hampton Roads ports between January 1 and March 31 totaled 6,436,519 tons this year and 5,630,212 tons last year, most o f the in crease occurring in foreign cargo coal. In the Fifth district, coal mined in March 1940, February 1940 and March 1939, was as fo llo w s: SOFT COAL PRODUCTION IN TONS REGION West Virginia ....................... Virginia .................................... Maryland .................................. 5th District ......................... United States ..................... % in District ..................... Mar. 1940 9,964,000 1,134,000 141,000 11,239,000 35,400,000 31.7 Feb. 1940 10i,163,000 1,269,000 153,000 11,585,000 39,105,000 29.6 Mar. 1939 9,332,000 1,145,000 143,000 10,620,000 35,438,000 30.0 Cotton textile mills in the Fifth district restricted oper ations further in March, and for the first time since Sep tember 1938 cotton consumption was less than in the corresponding month of the preceding year. Cloth prices softened in March, and mill margins declined from 12.25 cents in February to 11.59 cents in March. Early in April, however, demand for both cloth and yarn ex panded, and mill sales exceeded output. The more active constructions strengthened in price, and industrial cloth consumers and manufacturers o f clothing and household goods were active buyers. Finished cloth also moved in large volume in the first two weeks in April. Consump tion o f cotton by states in the Fifth district in March, 1940, February 1940 and March 1939, is shown below: COTTON CONSUMPTION— FIFTH DISTRICT In bales MONTHS March 1940 ......................... February 1940 ..................... March 1939 ......................... 3 Months, 1940 ................... 3 Months, 1939 ................... No. Carolina So. Carolina 163,705 129,351 174,359 131,419 169,147 128,110 528,363 403,324 474,780 358,086 Virginia 12,438 13,823 13,385 40,013 36,275 District 305,494 319,601 310,642 971,700 869,141 R A Y O N PRO D U CTIO N A N D SHIPMENTS H O LD UP Rayon Organon reports deliveries o f 29,500,000 pounds o f filament yarn to domestic consumers in March, the same poundage as was shipped in February and 11 per cent above March 1939 deliveries. Production in the United States continued to exceed shipments in March, and reserve stocks rose for the third consecutive month. Stocks o f yarn in primary hands on March 31 this year totaled 10,100,000 pounds, against 8,300,000 pounds on February 29, 1940, and 41,400,000 pounds on March 31, 1939. During March several rayon grey goods mills lengthened their selling terms from a thirty- to a sixtyday basis, which will enable converters to keep on hand an extra month’s supply o f rayon goods. Cellulose con sumption by the rayon industry in the United States totaled 196,000 tons o f pulp in 1939, o f which 143,000 tons was from wood and 53,000 tons from cotton linters. Cotton linters were much more important in the early days o f the industry, but since 1936 the price differential has been increasingly favorable to wood pulp and the relative use o f linters pulp has declined sharply. CO TTO N CO N SU M PTIO N A N D PRICE DECLINES COTTON CONSUMPTION AND ON HAN D — BALES Mar. 1940 Mar. Aug. 1 to Mar. 31 1939 This Year Last Year Fifth district states: Cotton consumed ............... 305,494 310,642 Cotton growing: states: Cotton consumed ....................... 539,804 547,569 Cotton on hand March 31 in Consuming establishments . . 1,316,757 1,203,502 Storage & compresses ........... 11,332,310 13,424,165 United States: Cotton consumed ......................... Cotton on hand March 31 in Consuming establishments . . Storage & conijpresses ........... Exports of cotton ............................ Spindles active, U«- S....................... 626,331 2,538,175 2,217,760 4,536,276 3,902,392 ........... ........... ........... ........... 649,940 5,330,835 4,609,360 1,595,7221,414,541 11,404,29813,477,548 443,842 330,070 22,555,03622,503,480 ............... ............ 5,350i,353 ............ ........... ........... 2,785,875 ........... Spot cotton prices on Southern markets moved through a narrow range between the middle o f March and the middle o f April, falling from an average o f 10.61 cents on March 15 to 10.50 cents on March 29, and then rising MONTHLY REVIEW 4 W H O LESALE TRADE, 200 FIRMS to 10.62 cents on April 12. On the whole, the price was about $1 to $1.50 per bale lower than in the preceding month, but was about $1 a bale higher than in the cor responding period last year. Net Sales Mar. 1940 compared with Mar. Feb. 1939 1940 LINES SEASON TO B A C C O SALES All auction tobacco markets in the Fifth district have closed for the 1939-1940 season, and total sales for growers from the 1939 and 1938 crops, with average prices, were as fo llo w s : Total Sales For Growers, Pounds Price per Cwt. North C a rolin a ........... So. Carolina ............. Virginia ....................... District Totals ___ 1939-1940 774,323,124 117,217,526 164,876,700 1,056,417,350 1938-1939 501,847,559 86,670,522 112,995,598 701,513,679 1939-40 $15.66 14.56 14.25 $15.32 1938-39 $22.92 22.24 20.04 $22.37 TO B A C C O M A N U F A C T U R IN G LO W E R The Bureau o f Internal Revenue reports tobacco pro ducts manufactured in March 1940 and 1939 as follow s: Mar. 1940 Smoking & chewing tobacco, pou nds................. Cigarettes, number ................. Cigars, number ........................ Snuff, pounds ............................ Mar. 1939 % 26,014,916 14,243,656,930 437,584,196 3,578,753 24,343,900 13,020,617,490 397,490,431 3,205,843 Change 6 — 9 — 9 — — 10 R E T A IL A N D W H O LESALE TR A D E DEPARTMENT STORE TRADE Net Sales Mar. 1940 comp, with Mar. 1939 Richmond (3) . . . Baltimore (8) . . . Washington (6) Other Cities (14) . District (31) . . Net Sales Stocks Jan. 1, to date Mar. 31, 1940 comp, with comp, with same period Mar. Feb. last year 1939 1940 + 9.9 + 3.1 + 3.6 + 11.5 + 5.0 + + + + + Same stores by states, with 20 stores added: Virginia (12) . . . -f- 9.3 West Va. (10) . . + 1 9 .1 No. Carolina (6) . 4-15.9 So. Carolina (9). + 15.3 7.8 8.9 7.0 9.0 7.9 + + + + + 7.3 2.7 4.0 4.3 4.0 + + + + + Ratio Mar. collections to accounts outstanding Mar. 1 5.7 4.3 4.8 2.8 4.5 32.2 32.7 27.5 28.9 29.8 + 7.3 + 17.7 + 11.6 + 14.7 RETAIL FURNITURE SALES Auto supplies (6) ............. Shoes (4) ............................ Drugs (13) .......................... Dry Goods (8 ) ................... Electrical goods (14) . . . . Groceries (60) ................... Hardware (16) ................. Indus, supplies (13) . . . . Plumbing & heating (6) . Paper & products (8) . . . Tobacco & products (7) . Miscellaneous (45) ........... District Average (200) Compared with Mar. 1939 Compared with 3 Months 1939 Maryland, 10 stores ............................ Dist. of Col., 6 stores ....................... Virginia, 10* stores .............................. North Carolina, 4 stores ................... Seuth Carolina, 7 stores ................... District, 38 stores* .......................... +12 — 10 + 7 + 1 +25 + 5 +18 + 3 4*3 + 5 +28 " f 11 Individual Cities: Baltimore, 10 stores ............................ Washington, 6 stores .......................... ‘ Richmond, 5 stores ............................ +12 — 10 + 9 +18 + 3 — 1 * Includes 1 West Va. store. + 4 — 3 0 + 4 + 12 + 6 + 14 + 19 + 12 + 4 + 8 4- 7 + 6 + 19 0 + 20 + 13 + 6 + 8 + 13 + 13 _O —ii 45 52 — 1 — 3 + 11 — 5 — 1 0 + 6 — 1 4-*2 -f 9 + 5 — 1 66 91 44 73 46 58 79 74 65 81 39 PE A N U T PRO D U CTIO N The growing o f peanuts for nuts is a leading agricul tural activity in coastal counties in Virginia and North Carolina, and is also important in South Carolina. Per acre production in Virginia and North Carolina is much higher than in any other states, yields in these two states usually running more than 1,000 pounds per acre. Prices o f peanuts vary widely from year to year, having ranged in Virginia in recent years from a low o f 1.4 cents per pound in 1932 to a high o f 5.3 cents in 1927, with an average o f approximately 3.5 cents since 1926. Twelve states are listed as peanut producing by the Department o f Agriculture, and the three which are located in the Fifth district account for about 40 per cent o f total production in the country. Georgia is the leading grower in total pounds, but North Carolina ranks second and Virginia third. PEANUTS PICKED AND THRESHED (In thousands of pounds) Year 1926 1927 1928 1929 1930 1931 1932 1933 3934 1935 1936 1937 1938 1939 Va. ........ ........ ......... ........ .... ,.. . ......... ........ ......... ..... 152,640 145,800 165,240 157,590 99,360 172,840 146,590 111,150 145,550 151,200 151,800 184,975 146,010 189,175 N. C. 200,850 220,500 210,000 224,400 178,350 275,000 229,500 180,500 260,150 259,900 261,000 308,700 249,075 290,700 c. District U. S. 4,550 8,250 6,900 7,500 8,400 9,100 11,900 8,160 7,500 9,520 8,160 8,030 7,800 11,840 358,040 374,550 382,140 389,490 286,110 456,940 387,990 299,810 413,200 420,620 420,960 501,705 402,885 491,715 662,190 844,220 843,505 898,197 697,350 1,055,815 941,195 819,620 1,009,950 1,147,225 1,253,090 1,224,190 1,305,800 1,179,505 c. District U. S. 650 750 690 750 700 650 700 680 625 680 680 730 600 740 1,035 978 1,027 1,017 806 1,106 956 925 1,043 1,095 1,102 1,233 976 1,138 S. Yields Per Acre, Pounds % Change in Sales, Mar.and 3 Months in 1940 STATES — 5 — 14 0 ~b 1 + 10 + 3 + 4 + 31 — 14 — 6 0 + 4 4- 1 Ratio Mar. Stocks collections Mar. 31, 1940 to accounts compared with Mar. 31 Feb. 29 outstanding March 1 1939 1940 Year 1926 . . 1927 ........ 1928 .. . 1929 1930 1931 1932 1933 1934 1935 1936 ........ 1937 1938 1939 .... (Compiled April 20, 1940) Va. 1,060 900 1,020 1,030 720 1,160 1,070 950 1,025 1,050 1,100 1,225 930 1,175 N. C. 1,030 1,050 1,050 1,020 870 1,100 900 950 1,075 1,150 1,125 1,260 1,025 1,140 S. 770 777 695 712 650 733 627 673 679 779 780 816 764 635 MONTHLY REVIEW, April 30, 1940 FEDERAL RESERVE BANK OF RICHMOND SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) INDUSTRIAL PRODUCTION Industrial activity continued to decline du ring M arch but at a somewhat slow er rate than in the preceding tw o months, and in the first h a lf o f A p ril there w as little fu rther decrease. W holesale prices o f basic com m odities de creased som ewhat in the latter h a lf o f M arch but recovered b y the middle o f A pril. D istribution o f com m odities to dom estic consum ers continued in large volum e, and exports w ere at the high levels reached last D ecem ber. PRODUCTION Index of physical volume of production, ad justed for seasonal variation, 1923-1925 average =100. By months, January 1934 to March 1940. FACTORY EMPLOYMENT Index of number employed, adjusted for seas onal variation, 1923-1925 average= 100. By months, January 1934 to March 1940u INCOME PAYMENTS The B oa rd’s index o f industrial production, w hich is adjusted f o r usual seasonal variations and fo r the number o f w orkin g days, w as 103 in M arch com pared w ith 109 in F ebruary. The decline reflected chiefly a fu rth er reduc tion in output o f steel and considerable decreases in activity a t cotton and woolen textile mills. Steel ingot production declined from an average o f 69 per cent o f capacity in F ebru ary to an average o f 64 per cent in M arch. In the first h a lf o f A p ril output w as at around 61 per cent o f capacity. Autom obile production in M arch and the first h a lf o f A p ril w as m aintained at the high, rate prevailing during Janu ary and F ebru ary but did not show the increase custom ary at this, season. R etail sales o f autom obiles continued in large volume, and dealers’ stocks o f new cars declined som ewhat from the high level reached earlier. In the m achinery industries activity showed some decline from the high rate o f other recent months, w hile at a ircra ft factories and ship yards activity continued at peak levels. O utput o f lum ber and plate glass advanced seasonally in M arch. In the woolen textile industry, where activity had been decining from the high level reached last Novem ber, there w as a fu rth er sharp reduction in M arch. A ctiv ity at cotton textile m ills also declined considerably but rem ained at a som ewhat higher level than prevailed a year ago. Shoe production likewise declined considerably in M arch. A t silk m ills activity rem ained at an excep tionally low level, while rayon production w as large. M ineral production w as maintained in large volum e in M arch. There w as some fu rth er reduction in output o f bitum inous coal, but output o f anthracite increased, follow in g a sharp decline in F ebru ary. Crude petroleum production continued at record levels. Value o f construction contracts aw arded, as reported b y the F. W . D odge Corporation, increased considerably in M arch, as is usual at this season. The increase w as principally in awards fo r private w ork, w hich in M arch ap prox i m ately equalled those in the corresponding period last year. Public aw ards increased somewhat, follow in g declines in Jan u ary and February, but w ere in sm aller volum e than a y ea r ago. P rivate residential building rose by about the usual seasonal amount. DISTRIBUTION Sales o f general m erchandise at departm ent and v ariety stores and b y m ail order houses increased b y about the usual seasonal am ount fro m F ebru ary to M arch, w ith allowance fo r the earlier date o f E aster this year. In the first week o f A p ril sales at departm ent stores w ere at a higher level than in M arch. F reigh t-car loadings showed little change fr o m F ebru ary to M arch, although a rise is usual between these months. Shipm ents o f m iscellaneous fre ig h t showed considerably less than the usual seasonal increase, and there w as some fu rth er decline in loadings o f coal. FOREIGN TRADE U. S. Department of Commerce estimates of the amount of income payments to individuals, ad justed for seasonal variation. By months, Janu ary 1934 to March 1940. E xports o f United States m erchandise in M arch continued near the high level reached last December. A gricu ltu ral exports, prin cip ally cotton, decreased from F ebru ary to M arch, w hile there w ere substantial increases in shipm ents o f com m ercial vehicles and in metal w orking, agricu ltural, and other types o f machinery. D urin g M arch, the coun try’s m onetary gold stock increased b y $256,000,000. In the first tw o weeks o f A p ril the rate o f gold inflow w as accelerated, acqui sitions in this period am ounting to $145,000,000. COMMODITY PRICES EXCESS RESERVES OP MEMBER BANKS Prices o f a number o f basic agricu ltural and industrial com m odities, w hich had declined in the latter part o f M arch, advanced during the second w eek in A p ril. P rices o f certain finished steel products, on the other hand, w ere re duced, and prices o f m ost other com m odities showed little change. GOVERNMENT SECURITY MARKET P rices o f Treasury bonds moved sh arply upw ard during M arch and the first fe w days o f A p ril to a new high level since last summer. On A p ril 9, however, on receipt o f news o f the expansion o f w a r activities in Europe, a decline o f about one point occurred in long-term bonds. Subsequently the m arket recov ered p a rt o f the loss. The yield on the 1960-65 Treasury bonds w as 2.31 per cent on A p ril 15, com pared w ith a low o f 2.26 per cent on A p ril 2. BANK CREDIT Wednesday figures partly estimated, January 3, 1934, to April 10, 1940. Reflecting continued heavy gold im ports, excess reserves o f m em ber banks increased during the fo u r weeks ending A p ril 10 to a record high level o f $5,950,000,000. Total loans and investm ents at banks in 101 leadin g cities, w hich had shown little net change during M arch, increased in the first tw o weeks o f A p ril, reflecting purchases o f United States Governm ent obligations.
@FedFRASER