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MONTHLY REVIEW o f Financial and Business Conditions F ifth Federal Re s e r v e D is tr ic t x " ' N r ......*4 Federal Reserve Bank, Richmond, Va. April 30, 1941 Summary of March Business Conditions H E wide influence o f the defense program is stead ily expanding throughout the Fifth Federal Reserve district as increased employment and larger payrolls en able workers to buy more consumer goods. A ll lines o f trade and industry continued operations at approximate capacity levels or increased further in March, and all in dicators were materially above those o f March last year. Debits to individual accounts in the banks of 25 Fifth district cities, reflecting payments by check, rose 25 per cent above debits in March 1940, every reporting city registering a gain this year. Reporting member banks increased loans to industry and trade during the year, and the greater need for money with which to meet current payrolls and provide additional pocket cash is indicated by a marked rise in Federal Reserve notes in actual circu lation. The number o f business insolvencies last month decreased 20 per cent from the number of bankruptcies in March last year. T cent, and sales o f new passenger automobiles were 41 per cent larger in March 1941 than in March 1940, auto mobile sales being stimulated not only by generally in creased purchasing power but also by anticipation o f high er retail prices as a result o f rising taxes and reductions in output by automobile factories as defense work expands. Construction work continues to increase in the district. Building permits issued in 30 cities last month exceeded March 1940 permts by 5 per cent, a relatively small gain, but contracts actually awarded in the district for both urban and rural work rose 81 per cent above last year’s figures. Industries have probably never been busier in the Fifth district than they were in March. Cotton textile mills used 26 per cent more cotton than in the correspond ing month last year, rayon yarn mills shipped 18 per cent more yarn to domestic consumers, tobacco manufacturing exceeded March 1940 output in every branch o f the in dustry, and coal mines produced 37 per cent more coal than a year ago. In April, however, Fifth district coal mines were closed from the first o f the month through the date o f this survey, April 21, while operators and miners negotiated renewal o f labor contracts. The coal mine shut-down is the only serious labor and management dis agreement to this time in the Fifth district. Department store sales in 79 Fifth district stores in March 1941 were 10 per cent larger than sales in March 1940, an impressive increase in view o f the fact that Easter trade occurred in March 1940 but much o f it fell in April this year. Furniture sales rose 32 per cent last month over sales a year ago, wholesale trade rose 24 per BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT March 1941 Debits to individual accounts (25 cities).... Sales, 79 department stores, 5th district.... Sales, 41 furniture stores, 5th district......... Sales, 188 wholesale firms, 5th district....... Registrations, new autos, 5th district......... $1,674,663,000 $ 13,995,665 1,137,839 $ $ 12,656,000 30,742 Number of business failures, 5th district.... Liabilities in failures, 5th district............... Value of building permits, 30 cities...... ...... Value o f contracts awarded, 5th district.. Cotton consumption, 5th district (Bales).. $ $ $ Cotton price, cents per lb., end of month.... Print cloths, 39 in., 80x80s, end of month.... Rayon yarn shipments, U. S. (Pounds)..... Rayon yarn stocks, U. S. (Pounds)............. Bituminous coal mined, U. S. (T on s)......... 35 547,000 12,172,328 57,017,000 385,352 10.89 9.25 35,200,000 9,700,000 48,250,000 February 1941 March 1940 $1,440,567,000 $ 10,550,615 1,251,675 $ $ 11,270,000 23,539 $1,342,709,000 $ 12,702,648 865,216 $ $ 10,247,000 21,989 $ $ $ 47 901,000 8,250,505 35,023,000 356,419 10.25 7.875 31,600,000 10,000,000 41,695,000 $ $ $ % Change Year Month + + + + + 25 10 32 24 41 44 500,000 11,571,518 31,542,000 305,494 4+ — + + — — + + + 16 33 9 12 31 26 39 48 63 8 — 20 + 9 4* 5 + 81 + 26 10.50 6.50 29,800,000 10,400,000 35,244,000 + 6 + 17 ■+ 11 — 3 + 16 4- 4 4- 42 + 18 — 7 4- 37 MONTHLY REVIEW 2 DEBITS TO IN DIVIDUAL ACCOUNTS RESERVE BANK STATE M E N T Discounts for member banks rose between the middle of March and the middle o f April, and industrial advances, after declining slowly but steadily for nearly a year, in creased also. Circulation of Federal Reserve notes, re flecting the greater need for currency for increased pay rolls and a higher level of general business activity, con tinued to rise. The Bank’s holdings of Government se curities under System allocation were also moderately in creased between March 15 and April 15, and cash reserves advanced substantially. Discounts held .............................................. Foreign loans on gold ............................... Industrial advances .................................... Government securities .............................. Total earning assets ............................. Circulation of Fed. Res. n o te s ................. Members’ reserve deposits ....................... Cash reserves ................................................ Reserve ratio .............................................. 000 omitted April 15 March 15 April 15 1941 1941 1940 $ 210 $ 43 $ 175 0 0 43 848 766 915 121,486______119,976______125,871 122,544 120,785 127,004 298,853 291,234 218,615 400,802 394,914 286,730 650,872 628,578 439,752 85.03 84.45 78.16 M EM BER BANK STA TE M E N T Forty-one regularly reporting member banks in 12 Fifth district cities reported increased loans, cash in vaults, and time deposits between March 12 and April 9, 1941, but declines occurred in investments in securities, reserve balances, and demand deposits. The rise in loans was almost entirely in advances to trade and industry. Be tween April 10, 1940, and April 9, 1941, loans to business advanced by $27,300,000, or 23 per cent, while all other loans increased only $9,645,000, or 6 per cent. The rise in business loans reflects in large part assistance extended to the defense program. SELECTED ITEMS—41 REPORTING BANKS Fifth Disrict ITEMS Loans to business and agriculture All other loans . ................................ Investm nts in securities ............... Reserve bal with F. R. bank . . . . Cash in vaults . . ............................... Drmand deposits.......... .................... T'me derosifs .................................... Money borrowed ................. .............. 000 omitted April 9 March 12 1941 1941 $144,000 $146,500 159,392 159,188 428,461 471,875 270,921 273,152 27,444 26,649 662,843 654,971 207,504 206,030 0 0 .... of Change Month Year % $ 342,396 $ 287,863 $ 287,345 + 19 + 19 481,724 8,694 11,074 416,425 7,704 10,085 391,008 8,213 9,326 + 16 + 13 + 10 + 23 + 6 + 19 15,798 99,621 32,350 24,986 57,714 15,455 48,231 14,314 89,650 25,293 23,353 46,538 12,863 38,535 12,500 69,942 26,575 21,145 44,158 11,325 43,909 + + + + + + + 10 11 28 7 24 20 25 + + + + + + + 26 42 22 18 31 36 10 Sou'th Carolina Charleston ........... Columbia ............. Greenville ........... Spartanburg . . . . 26,077 41,821 24,834 17,852 22,601 34,112 22,247 18,316 20,651 29,232 20,075 10,921 + 15 + 23 + 12 — 3 + + + + 26 43 24 63 Virginia Danville ............... Lynchburg ........... Newport News . . Norfolk ................. Portsmouth........... Richmond ............. Roanoke ............... 8,938 16,759 16,556 72,632 6,494 184,219 33,511 8,153 14,277 13,245 64,390 5,402 157,765 29,511 8,019 15,844 11,519 51,227 4,479 141,849 28,527 + 10 + 17 + 25 +13 + 20 + 17 + 14 + + + + + + + 11 6 4 42 45 3Q 17 West Virginia Charleston ........... Huntington ......... Parkersburg . . . . 56,502 19,559 10,866 51,584 16,843 9,498 47,474 17,102 10,344 + 10 + 16 + 14 + 19 + 14 + 5 Disrict Totals . - - $1,674,663 $1,440,567 $1,342,709 + 16 + 25 Maryland Baltimore ............. Cumberland ......... Hagerstown ......... North Carolina Asheville ............... Charlotte............... Greensboro ........... C O M M E R C IA L FAILU RES Dun & Bradstreet reports commercial failures in the Fifth district and the United States for several recent periods as follow s: PERIODS March 1941 ................... February 1941 ............... March 1940 ............... 3 months, 1941 ............. 3 months, 1940 ............. April 10 1940 $119,200 149,747 412,303 190,291 22,146 543,935 201,144 0 M U T U A L SAVIN G S BANK DEPOSITS Deposits in 10 mutual savings banks in Baltimore set a new record on March 31, 1941, totaling $225,009,656, in comparison with $224,323,164 in deposits on February 28, 1941, and $223,163,689 on March 31, 1940. DEBITS TO IN D IV ID U A L A C CO U N TS Checks cashed against depositors’ accounts in the banks in 25 cities in March showed a seasonal rise over Febru ary figures, and also rose 25 per cent above March 1940 figures. The high debits total reflects the large volume of business resulting either directly or indirectly from the defense program. Dist. of Col. Washington 000 omitted Feb. Mar. 1941 1940 Mar. 1941 Wilmington ......... Winston-Salem . . RESERVE BAN K STATEMENT ITEMS Fifth Disrict ITEMS CITIES Number of Failures District U. S. 35 148 Total Liabilities District U. S. 1,211 1,129 1,197 $ 547,000 901,000 500,000 $13,444,000 13,483,000 11,681,000 3,464 3,476 1,819,000 1,663,000 38,815,000 40,432,000 EM PLOYM ENT Construction work at army camps has declined sub stantially or been practically completed during the past month, and in bituminous coal fields miners have been voluntarily idle since April 1, but employment has in creased further in every other branch o f industry and trade since March 1. Labor is so well employed in con struction and industry that farmers report a scarcity o f agricultural workers, although the farming season is just beginning. Skilled mechanics are the workers in great est demand, and there are insufficient men of this class to meet industry’s need, but the problem can probably be solved by shifts o f workers from non-defense industries to those doing more important work, or by transfer of workers from production o f consumer goods to defense products in the same plant, as in the automobile industry. The following figures, compiled for the most part by the Bureau of Labor Statistics, show the trends o f employ ment and payrolls in the Fifth district from February to M arch: 3 MONTHLY REVIEW Percentage change from Feb. 1941 to Mar. 1941 in number in amount on payroll of payroll STATES Maryland .............................................. Dist. of Colum bia............................. Virginia ................................................ West Virginia .................................... North Carolina ........................... South Carolina ................................ .. District A v e r a g e ........................... ........... ........... ........... ........... ........... ........... ..... + 2 .0 + 2 .0 + 1 .3 + 1 .9 + 1 .1 + 1 -3 + 1.5 + + f+ 3.3 1.7 4,1 4.4 1.6 3.6 3.4 A U T O M O B IL E R E G ISTRA TIO N S Registrations o f new passenger automobiles in the Fifth district, representing sales of new cars at retail, continue very high. Owners of old cars have reached the conclusion that automobiles prices will advance materially as soon as new tax legislation can be passed, and they are trading in their used cars for new ones or for better and later model used ones. In March, sales of new cars set all time records for that month in Maryland, the District of Colum bia, Virginia, North Carolina and South Carolina, and dealers state that the demand for new cars jumped higher in April as a result o f the automobile industry’s announce ment o f restrictions to be put on 1942 production and the Treasury’s notice of intention to raise three and a half billions in additional taxes. The increased demand for cars, while chiefly in the new car field, has been felt in sales o f late model used cars also, but dealers’ stocks o f used cars have increased substantially in the past two or three months. Many of the cars being traded in on new ones are comparatively recent models with low mileage on them, and they will sell easily, especially if and when new car output is restricted. Registration figures in Fifth district states for March, as reported by R. L. Polk & Co., of Detroit, are as fol lows : to $132,907,000, the highest total for any first quarter since records began in 1921 and 60 per cent above $83,163,000 in the first quarter o f 1940. Figures by states for February 1941, which were not available when the March 31 R eview went to press, were reported by F. W . Dodge Corporation as fo llo w s: CONSTRUCTION CONTRACTS AW ARDED STATES Maryland ............................. Dist. of Col.......... .................. Virginia ......................... .. West Virginia ..................... North Carolina ................... South C arolina..................... District ................................ Feb. 1941Feb. 1940 % Change $ 5,687,000 $10,234,000 — 44 5,880,000 6,839,000 — 14 10,693,000 4,728,000 +126 3,746,000 2,149,000 + 74 6,360,000 3,987,000 + 60 2,657,000 1,668,000 + 59 $35,023,000 $29,605,000 + 18 BITU M IN OU S C O A L M IN IN G Practically all bituminous coal mines in the United States have been closed since April 1, and production has been negligible. Reserve stocks were accumulated in an ticipation o f the shut-down, but industry and the railroads are using coal at a high rate and shortages o f fuel are now, on April 21, beginning to develop. Production o f soft coal in the United States in March totaled 48,250,000 net tons, compared with 41,695,000 tons in February 1941 and 35,244,000 tons in March 1940. The high figure last month was due in part to stocking o f coal. Total produc tion this calendar year to April 5 of 138,719,000 tons ex ceeded production o f 126,450,000 tons to the same date in 1940 by 10 per cent. Shipments o f coal through Hamp ton Roads ports between January 1 and April 5 totaled 6,635,227 tons this year and 6,925,217 tons last year. In the Fifth district, coal mined in March 1941, February 1941 and March 1940, was as fo llo w s: SOFT COAL PRODUCTION IN TONS REGISTRATION OF N E W PASSENGER CARS— NUMBEIR STATES Maryland . . . . . . Dist. of Col. . . . Virginia ............. West Virginia . . No. Carolina . . . So. Carolina . . . Fifth District. Mar. 1941 7,052 3,896 6,357 2,740 6,727 3,970 Mar. 1940 5,337 3,087 3,862 2,460 4,415 2,828 % Change + 32 + 26 + 65 + 11 + 52 + 40 30,742 21,989 + 40 3 Months 3 Months 1941 1940 15,421 11,669 8,311 6,434 18,694 10,838 7,274 6,329 17,586 12,355 10,357 7,605 77,643 55,230 % Change + 32 + 29 + 72 + 15 + 42 + 36 + 41 C O N STRU C TIO N Building permits issued in March 1941 in 30 Fifth dis trict cities totaled $12,172,328, a seasonal increase of 48 per cent over permits totaling $8,250,505 issued in Febru ary this year and 5 per cent above $11,571,518 in permits issued in March 1940. Permits in the first quarter o f 1941 totaling $32,646,746 were 38 per cent greater than $23,605,168 in the first quarter of 1940. Washington led in March 1941 permits with $5,296,450, Baltimore was sec ond with $2,124,600, Raleigh third with $1,113,825, Rich mond fourth with $746,509, and Charlotte fifth with $343,564. Contracts actually awarded in March for construction work in the Fifth district totaled $57,017,000, an increase o f 63 per cent over $35,023,000 in February and a gain of 81 per cent above $31,542,000 in March last year. Total awards in the district in the first quarter of 1941 amounted REGIONS West Virginia ....................... Virginia....................................... Maryland .................................. 5th District ..................... United States ................. % in District ............ . . Mar. 1941 12,945,000 1,594,000 174,000 14,713,000 48,250,000 30% Feb. 1941 10,835,000 1,343,000 153,000 12,331,000 41,695,000 30/% Mar. 1940 9,720,000 1,156,000 137,000 11,013,000 35,244,000 31% C O TTO N TEXTILES Buying o f all kinds of cotton gray goods was heavy 111 March, according to the monthly survey by the Journal o f Commerce. Print cloths sold in large amounts and a substantial business was written on sheetings, drills, osnaburgs and combed goods. Price advances were more pro nounced than in any other month since the buying move ment got under way last September, and averaged approxi mately 1 cent per yard on most constructions. Mills en tered the second quarter with the largest peacetime backlogs they ever possessed, and maintenance o f the present high rate o f operations is assured for at least six months. Cotton consumption in Fifth district mills in March was higher than in either the shorter month of February 1941 or March 1940, but declined slightly from the January 1941 record. Consumption o f cotton in Fifth district states, as reported by the Census Bureau, was as follows in March and February this year and March last yea r: 4 MONTHLY REVIEW COTTON CONSUMPTION— FIFTH DISTRICT In bales MONTHS March 1941 ............ ............ February 1941 ..................... March 1940 ......................... 3 Months, 1941 ................... 3 Months, 1940 ................... No. Carolina So. Carolina Virginia 210,198 158,442 16,712 194,637 146,331 15,451 163,705 129,351 12,438 616,967 466,684 49,179 528,363 403,324 40,013 TOBACCO MANUFACTURING District 385,352 356,419 305,494 1,132,830 971,700 THE RAYON MARKET Rayon Organon reports shipments o f 35,200,000 pounds o f rayon filament yarn to domestic consumers in March, compared with 31,600,000 pounds shipped in February and 29,800,000 pounds in March last year. One o f the medium-size viscose rayon yarn plants was closed by a strike on March 22, and had not reopened at the end o f the month. Shipments exceeded production o f yarn last month, and reserve stocks consequently declined from 10.000.000 pounds on February 28 to 9,700,000 pounds on March 31. On March 31 last year reserve stocks totaled 10,400,000 pounds. The National Rayon W eavers A s sociation and the National Federation o f Textiles recently announced a new inventory o f rayon filament yarn held by rayon broad goods weavers in mill warehouses or un opened cases, but exclusive of stocks in process or in transit. On February 28, 1941, American mills thus held 28.000.000 pounds of yarn, against 28,600,000 pounds at the end o f 1940 and 24,000,000 pounds held on Febru ary 29, 1940. COTTON STATISTICS Spot cotton prices on 10 Southern markets rose during March and early April from an average o f 10.68 cents per pound for middling short staple on March 14 to 11.22 cents on April 14, the high point for the current season to date. The price eased off after the 14th to 11.08 cents on April 18, the latest date for which data are available. Price advances since the first o f the year have been suffi cient to encourage repossessions o f loan cotton, and through April 15 approximately 1,193,000 bales o f the 1940 loan stocks were withdrawn. Total loan stocks, in cluding cotton owned by the Government, are now about 10.000.000 bales. Production o f tobacco products in March not only showed a seasonal rise from February figures, but ex ceeded March 1940 production in every branch o f the industry. Percentage increases for March 1941 output over March 1940 were 19 per cent for cigarettes, 8 per cent for cigars, 3 per cent for chewing and smoking to bacco, and 2 per cent for snuff. Production figures re leased by the Bureau o f Internal Revenue are as fo llo w s: Mar. 1941 1941 385,382 305,494 United States: Cotton consumed ................... Cotton on hand March 31 in Sales + 5 ( + 9) + 11( + 13) + 12( + 15) + 5 ( + 9) + 10 ( + 14) Richmond (5) ............... Baltimore (10) ................. Washington (7) ............... Other Cities (12) ........... Fifth District (79)♦ . . . . Same stores by states, including stores report ing sales only: Maryland (13) ................. Virginia (16) ................... West Virginia (15) ......... North Carolina (16) . . . South Carolina (12) . . . Stocks + 9 + 7 + 9 +6 +8 Orders Receivables + 78 +7 + 73 + 9 + 59 + 9 +66 +66 +6 +8 + 1 1 (+ 1 3 ) + 1 1 (+ 1 5 ) + 4 ( + 7) + 7 + H) + 3( + l l ) ♦Includes stores reporting sales only. Note: Second figure in parentheses under Sales compares combined in 3 months of 1941 with sales in first 3 months last year. RETAIL FURNITURE SALES % Changes in Sales, March and 3 Months 1941 STATES Maryland, 9 stores ........................ Virginia, 13 stores....................... North Carolina, 5 stores............. South Carolina, 7 stores............... District, 41 stores................... .. Compared with Mar. 1940 + 24 + 46 + 31 + 13 + 40 Individual Cities: Baltimore, 9 stores......................... Compared with 3 Months 1940 h24 -36 -27 -20 -32 + 29 + 24 + 13 + 46 Washington, 7 stores..................... + 24 + 7 + 36 W HO LESALE TRADE, 188 FIRMS 2,783,574 2,538,175 5,183,855 4,535,493 627,194 6,075,096 5,330,901 Consuming establishments . . 1,911,238 1,596,334 Storage & compresses ........... 13,243,573 11,409,520 Exports of cotton .......................... 97,292 433,842 Spindles active, U. S..................... 22,795,742 22,553,360 829,992 5,350,353 854,179 24,343,900 13,020,617,490 397,490,431 3,205,843 Percentage increase or decrease in sales, stocks, outstanding orders and outstanding receivables in March 1941 in comparison with March 1940 figures: Fifth district states: Cotton consumed . Mar. 1940 DEPARTMENT STORE TRADE Mar. Aug. 1 to Mar. 31 1940 This Year Last Year Cotton growing states: 722,584 540,516 Cotton consumed ............... Cotton on hand March 31 in Consuming establishments . . 1,555,064 1,317,056 Storage & compresses ........... 12,888,620 11,337,532 22,150,840 14,464,626,900 385,348,833 3,051,492 RETAIL AND WHOLESALE TRADE COTTON CONSUMPTION AND ON HAND— BALES Mar. Feb. 1941 24,993,372 15,528,629,200 430,326,200 3,260,069 Smoking & chewing tobacco, pounds ............... Cigarettes, number ................. Cigars, number ....................... Snuff, pounds ............................ LIN E Auto supplies (8) ........... Shoes (4) .......................... Drugs & sundries (10) . Dry goods (8) ................. Electrical goods (10) . . . Groceries (63) ................. Hardware (15) .............. Industrial supplies (8) . Paper & products (8) Tobacco & products (8 ). Miscellaneous (46) ......... District Average (188) Net Sales March 1941 compared with Mar. Feb. 1940 1941 + 13 +21 + 13 + 13 + 58 + 10 + 1'7 + 76 + 33 + 16 + 36 +24 Source: Bureau of the Census. (Compiled April 21, 1941) b 1 -11 - 6 r 14 - 5 -15 -10 -38 bl3 -11 + 15 + 12 Stocks Ratio Mar. Mar. 31,1941 collections compared with to accounts Mar. 31 Feb. 28 outstanding 1940 1941 Mar. 1 + 14 — 12 0 “ 10 —‘i + *2 + 14 + & + 3 — 4 — 1 + 9 — 0 + 32 +15 + 9 + 18 — 3 + 8 + 22 + 9 + 1 64 48 87 44 72 96 49 101 77 80 61 67 MONTHLY REVIEW, April 30, 1941 FEDERAL RESERVE BANK OF RICHMOND SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) IN D USTR IA L PRODUCTION Federal Reserve index of physical volume of production, adjusted for seasonal variation, 19351939 average—100. By months, January 1935 to March 1941. DEPARTMENT STORE SALES AND STOCKS Federal Reserve indexes of value of sales and stocks, adjusted for seasonal variation, 1923-25 average=100. By months, January 1935 to March 1941. WHOLESALE PRICES Bureau of Labor Statistics’ indexes, 1926=100. “ Other” includes commodities other than farm products and foods. By weeks, January 5, 1935, to April 12, 1941. MEMBER BANKS IN 101 LEADING CITIES Wednesday figures, January 2, 1935, to April 9, 1941. Commercial loans, which include indus trial and agricultural loans, represent prior to May 19, 1937, so-called “ Other loans” as then reported. Industrial activity increased fu rth er in M arch bu t declined som ew hat in the first h alf o f A pril ow in g to tem porary redu ction s in ou tpu t o f bitum inous coal and autom obiles. W h olesale prices o f m any com m odities advanced con siderably and the G overnm ent took steps to lim it price advances o f som e additional industrial materials. PR O D U C T IO N Volum e o f industrial output continued to increase in M arch and the B o a r d s seasonally adjusted index rose fro m 141 to 143 p er cen t o f the 1935-39 average. A ctiv ity increased fu rth er in m ost durable g ood s industries, particu larly in those producin g m achinery, a ircra ft, ships, and arm am ent. Steel production increased to about 100 per cent o f rated capacity. A u tom obile production, w hich usually increases considerably in M arch, showed little change fro m the high rate reached in F ebru ary. In the first h alf o f A pril output was reduced considerably ow in g to a shutdow n at plants o f the Ford M otor Com pany during an industrial dispute w hich w as settled abou t the middle o f the month. Retail sales o f new and used cars advanced to new peak levels in M arch and dealer's stocks at the begin ning o f A p ril am ounted to about a m on th ’ s supply at the current rate o f sales. O utput o f lum ber, w hich had been sustained at unusually high levels during the w in ter m onths, rose less than seasonally. A ctiv ity in the textile and shoe industries increased fu rth er in M arch. C otton consum ption rose to a record level o f 854,000 bales and th ere w as also an increase in rayon deliveries. A t w ool textile mills activity w as sustained at the peak rate reached in Febru ary, n ot show ing the usual large seasonal decline, and in the chem ical and ru b ber industries fu rth er advances w ere reported. Bitum inous coal p rodu ction rose considerably, w hile ou tpu t o f cru de petroleum was m aintained in M arch at abou t the rate that had prevailed in the fo u r precedin g months. In the first h a lf o f A p ril coal prod u ction declined sharply, h ow ever, as m ost m ines w ere closed pen din g conclu sion o f con tra ct n egotiations betw een m ine operators and the m iners’ union. P rodu ction o f n on ferrou s metals continued in large volum e in M arch and deliveries o f refined copper show ed a sharp rise as dom estic p rodu ction w as supplem ented b y sup plies received fro m South A m erica. C onstruction con tra ct aw ards rose sharply in M arch and w ere larger than in any m onth since the m iddle o f 1930, a ccord in g to the F. W . D odge Cor poration data. The rise was chiefly in aw ards f o r publicly-financed w ork, w hich had been reduced considerably in January and F ebru ary, and in private n on residential p rojects, particularly fa c to r y construction . A w ards f o r private residential building, w hich had been unusually large during the w in ter months, show ed less than the custom ary seasonal rise in M arch. D IS T R IB U T IO N In M arch distribution o f com m odities to consum ers w as sustained at the high level reached in February. Sales at m ail-order houses and departm ent stores increased seasonally and v ariety store sales show ed m ore than the usual seasonal rise. F reigh t-car loadings increased b y about the usual seasonal am ount. L oad ings o f coal and grain rose considerably, w hile shipm ents o f m iscellaneous freigh t, w hich in previous m onths had risen steadily, on a seasonally adju sted basis, show ed a smaller increase than is usual at this tim e o f year. CO M M O D ITY P R IC E S P rices o f basic com m odities continued to advance sharply fr o m the middle o f M arch to the middle o f A pril. T here w ere substantial increases in prices o f dom estic foodstu ffs and fu rth er advances in burlap, cotton , rubber, and lead. Increases w ere also reported in w holesale prices o f a num ber o f m anu factu red products and the general index o f the Bureau o f L ab or Statistics rose tw o points to 83 per cent o f the 1926 average. In form al action was taken by the G overnm ent to discou rage p rice increases o f som e additional industrial m aterials and m axim um price schedules w ere established f o r steel, bitum inous coal, secon dary and scrap alum inum and zinc, and iron and steel scrap. Sharp redu ction s in prices o f som e kinds o f n on ferrou s metal scrap resulted. Announcem ent o f an expanded Federal purchase program f o r hog, dairy, and pou ltry products w as fo llo w e d b y price increases fo r these and related products. B A N K C R E D IT T ota l loans and investm ents at rep ortin g m em ber banks in 101 cities increased during M arch and the first tw o w eeks o f A pril. C om m ercial loans continued to rise substantially, and h oldings o f U nited States G overnm ent securities increased fu rther, reflectin g purchases o f new T reasu ry offerings. U N ITED S T A T E S G O V E R N M E N T SE C U R IT Y P R IC E S Prices o f United States G overnm ent securities declined irregu larly fr o m M arch 15 to A pril 9 but subsequently rose slightly. The 1960-65 bonds showed a net loss o f about % o f 1 poin t on A pril 15, fo llo w in g a rise o f ab ou t 3 % poin ts.in the previous month. The yield on this issue on A p ril 15 w as 2.14 per cent, com pared with 2.03 per cent at the all-tim e peak in prices on D ecem ber 10, and 2.30 per cent at the recen t low in prices on F ebru ary 15.
