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MONTHLY
FEDERAL RESERVE BANK OF RICHMOND
RICH MO ND 13, VIRGINIA

APRIL 3D, 1 9 4 8

Business Conditions
USIN ESS volumes rose more than seasonally from
February to March in the Fifth Federal Reserve
District, but this rise restored business to earlier estab­
lished levels and was, in the main, caused by the incidence
of clement weather and the early Easter date. The coal
strike, which began on the 15th of March, reduced em­
ployment in the mines by about 125,000 and caused rail­
road, steel mill and port layoffs in the District in the
neighborhood of 20,000 before work in the mines had
again been resumed. There were no indications of a
further broadening of work stoppages or production cut­
backs resulting from shortages of coal, but there would
have been had the strike lasted two weeks longer.

B

Employment Improves
Employment levels in the District in March were
slightly higher than in January or February, but it was
too wet in the woods for a full resumption of logging
operations and some small reduction in force occurred at
shipyards.
If Congress accepts the President’s proposal on new
merchant shipbuilding for the year beginning July 1,
which would raise the outlay to $100 million from a pres­
ent budget figure o f $30 million, there will probably be
considerable increase in employment levels at both New­
port News and Baltimore yards.
The cotton textile, apparel, knitting and rayon indus­
tries either maintained or slightly expanded employment
and production levels in March over February. The can­
cellations of orders for furniture which were of some
concern during February did not have any sustained
effect on the industry for its employment in March con­
tinued to rise.
Construction Higher
Although climatic conditions have retarded on-site
operation during much of the first quarter, permits is­
sued and contracts awarded have risen to a level that as­
sures an expanding work force in the industry through
the Summer if the workers can be found. Permits, which
had declined sharply in value from January to February,
rose 16 percent from February to March to a level 90
percent ahead of a year ago. One and two family houses,
which accounted for 44 percent of the contract awards
in the first two months o f 1947, were responsible for only
26 percent of total awards in the first 2 months of 1948.

In many areas of the District reports indicate that sales


of one family houses are much more difficult to make,
and that newly completed houses often stand idle for a
considerable period before a sale is consummated. This
seems to be having an adverse effect on the construction
of this type of dwelling, particularly in Maryland, West
Virginia and North Carolina. District-wise the multiple
structure dwelling is in a rising trend while the one and
two family house is in a declining trend. A pickup in the
contracts awarded for buildings of manufacturers and in
non-residential construction (other than commercial and
educational buildings) has been the strong factor in the
District’s construction picture thus far this year.
Cotton Mill Activity At Peak
Cotton consumption in the Fifth District, seasonally
adjusted, rose one percent from February to March with
the latter month showing a gain of 1 percent over March
1847. Spindle hours operated in the District’s mills
which gives a truer picture of the industry output at the

FEDERAL RESERVE BANK OF RICHMOND
present time, however, were 19 percent higher in March
than a year ago. The first quarter of 1948 has probably
shown the maximum amount of shifting that will take
place for some time in the number of looms operated on
the light constructions such as prints and some sheetings.
These are in relatively greater supply than some of the
heaver constructions such as drills, twills, chambrays
and denims. There are already indications that some
looms are being shifted to these heavier constructions
and this should cause a relatively better showing in cot­
ton consumption in the rest of the year than in spindle
hours operated.
The cotton goods and yarn mills in the second week
of April experienced another fairly large wave of for­
ward covering by consuming industries which has pretty
well sold-up the goods output of the third quarter, and
sold-up the sales yarn production into August. The trade
is anticipating considerable business, perhaps too much,
from the combined effects of the stepped-up defense pro­
gram and the export market. Following a period of sev­
eral months when little selling for export was done, ex­
port inquiries again, even without consummated sales,
seem welcome. The chart on the front page shows a sub­

stantial drop in the exports of cotton goods through Feb­
ruary, and when the figures are available for March,
April and probably May they will probably show a con­
tinuation of the same trend. In fact the benefits of Eu­
ropean Recovery Administration funds to the cotton tex­
tile industry will be mainly through the dollars supplied
to countries outside the 16 nations.
Domestic purchases o f cotton goods during April
were for the account of converters and cutters, and
some expansion occurred in industrial goods. Retail
stores for the most part are over-inventoried and may
not be purchasing as much as they sell for the next 60
days. If retail sales hold up over this period retailers will
be back in the market for full coverage around mid-year;
if not, there will probably be a very quiet spell in mill
sales over this period.
Retail Trade
Information from a sample of department and mail
order stores indicates that the stores will follow a policy
of covering about half of their fall requirements where
commitments are necessary during the next two or three
months. If these stores happen to be a good cross sec( Continued on P a ge 9)

BUSINESS IN D E X E S—FIFTH FEDERAL RESERVE DISTRICT
AVERAGE DAILY 1935-39 = 100— SEASONALLY ADJUSTED

Mar.
_____________________________ 1948
Automobile Registration*................................................
320
91
Bituminous Coal Production*......................................
327
Building Contracts Awarded........................................
Apartments and Hotels...............................................
Commercial Construction Contracts......................
Manufacturing Construction Contracts.................
One and Two Family Houses....................................
Public Works and Utilities........................................
291
Residential Construction Contracts........................
274
Building Permits Issued................................................
61
257
153
Cotton Consumption........................................................
317
Department Store Sales..................................................
334
Department Store Stocks................................................
Electric Power Production............................................
Employment—Mfg. Industries*....................................
Furniture Orders..............................................................
Furniture Shipments............................ ...........................
Furniture Unfilled Orders..............................................
263
Furniture Sales—Retail..................................................
246
Life Insurance Sales........................................................
Wholesalt Trade:......................................................... —
341
Automotive Supplies**................................................
265
Drugs ..............................................................................
184
Dry Goods........................................................................
83
Electrical Goods**.........................................................
247
Groceries ...........................................................-.............
140
Hardware .......................................................................
317
Industrial Supplies**....................................................
155
Paper and Its Products**...............................................
87
Tobacco and Its Products**........................................
* Not seasonally adjusted.
** 1938-41 = 100.




[ 2]

Feb.
1948
107
313
159
335 r
681
350
664
347
225
446
236
28
228r
151
306
339
252
135
415
348
912
244r
231

Jan.
1948
126
302
166
324
260
503
311
402
401
358r
375
11
219
150
286
335
257
135
485
405
875
259r
276

Mar.
1947
116
293
166
272
435
271
229
373
308
331
144
19
251
152
307
300
238
134
255
419
979
279
239

286
259
159
88
246
123
265
160
96

317
276
171
105
263
140
330
170
100

345
260
163
65
277
114
271
164
108

% Change

Mar. 1948 from
Feb. 43
Mar. 47
+ 2
— 43
— 2

4- 9
— 45
+ 20

— 35
+ 16
+118
+ 13
+ 1
+ 4
— 1

— 12
+ 90
+221
+ 2
+ 1
+ 3
+ 11

4- 8
+ 6

— 6
+ 3

4- 19
4- 2
4- 16
— 6
0
+ 14
+ 20
— 3
— 9

— 1
+ 2
+ 13
+ 28
— 11
+ 23
+ 17
— 5
— 19

APRIL 1943

MONTHLY REVIEW

Ownership of Demand Deposits of Individuals,
Partnerships, and Corporations, January 30, 1948
Relatively minor changes occurred in the distribi>
tion o f the ownership o f demand deposits of indi­
viduals, partnerships, and corporations held by Fifth
District banks on January 30, 1948, as compared with
the preceding survey date, February 26, 1947. All
ownership groups, with the exception of trust funds
and nonprofit associaions, showed increases during the
period; the larger gains, however, were shown by the
business groups. Nonfinancial businesses increased
their deposits by 4.6 per cent, the gains being fairly
evenly distributed among the component groups of this
category. Financial businesses, heavily influenced by
the 87.8 per cent gain in deposits of insurance compa­
nies, showed a group increase of 25.3 per cent. Per­
sonal deposits showed a small gain, but failed, for the
first time since the institution of the surveys of owner­
ship, to keep pace with the gain in total deposits on a
year-to-year basis.
CH AN GES IN O W N E R S H IP OF D E M A N D D E PO SIT S OF
IN D IV ID U A L S , P A R T N E R S H IP S , A N D C O R P O R A T IO N S
F ifth Federal Reserve D istrict
(Estimates in m illions o f dollars)
Increase or
decrease (— ) from
A m t. outPercent
February 26, 1947
standing
o f total
----------------------------------Type o f holder
Jan. 30, *48 Jan. 30, *48 D ollar am t. P er cent
2,389

52.6

168

7.5

N onfinancial bnsiness

2,003

44.1

88

4.6

M anu factu ring and
m in ing
P ublic utilities
Trade
Other nonfinancial

607
242
890
265

13.4
5.3
19.6
5.8

25
11
37
14

4.4
4.7
4.4
5.7

386

8.5

78

25.3

156
230

3.4
5.1

73
5

87.8
2.4

Trust funds
N onprofit associations
Personal
F oreign

70
249
1,828
3

1.5
5.5
40.3
A

_

— 14
— 22
23
3

— 16.9
— 8.0
1.3

T otal

4,510

100.0

Total bnsiness

Financial bnsiness
Insurance companies
Other financial

157

3.6

N o t e : O w ing to rounding, details m ay not add to totals.

The growth in business deposits came almost entirely
from the increases in large corporate balances. $166
million net increase was the result o f a gain o f $180
million in corporate balances and a decline of $14 mil­
lion -in deposits of unincorporated businesses; of the
corporate gain, $164 million came in deposits of $25,000
or more, which deposits accounted for 73 per cent of
total business deposits as of the survey date. Deposits
of unincorporated businesses showed declines in all de­
posit-size groups, and declines or but small gains in
nearly all classifications by type o f business.
This development is of particular significance in view
of the higher rate o f increase in deposits of unincor­
porated businesses that occurred during the war years.
The view was held at that time that the larger corporate




balances, while increasing, were doing so in pace with
the financial requirements of the owners, and that the
deposits of smaller, unincorporated businesses were
being allowed to accumulate without especial regard to
the needs of the concerns. Postwar capital outlays, in­
creases in operating costs, and increased inventory and
receivables requirements have placed strains upon the
liquid resources of business firms, resulting in increased
balances in the case of the larger concerns and declin­
ing balances for the smaller. The changes that have
recently occurred in deposit holdings may be inter­
preted as substantiating evidence of the tightening cur­
rent position o f many of these businesses, a fact that
has been noted in many specific cases.
Manufacturing and mining concerns increased their
deposits during the eleven-month period by 4.4 per
cent, the increase being entirely concentrated in the
larger deposits. This increase, while in keeping with
the increase in total deposits of nonfinancial businesses,
exceeded the increase shown for total demand deposits
of individuals, partnerships, and corporations for the
District. It probably may be attributed to the higher
liquidity requirements of these firms, but to some ex­
tent was influenced, as were all business deposits, by
accumulations in anticipation of February payments of
withheld taxes.
The somewhat greater percentage increase (4.7 per
cent) in deposits of public utility and transportation
firms was similarly concentrated in deposits having
large balances. O f the total, 81 per cent are in accounts
of $25,000 or more belonging to corporate depositors.
Here again, increased operating expenses have been
reflected in greater needs for liquid balances, and in
addition, wellnigh all such firms are engaged in sub­
stantial programs of expansion of facilities, with atten­
dant needs for means of payment.
The small net change in deposits of trade concerns
concealed substantial changes that occurred in the hold­
ings o f the various subgroups o f the broad category.
Deposits o f incorporated trade concerns increased by
12 per cent during the eleven months, showing gains in
every deposit-size group; the increase in corporate bal­
ances of $25,000 or more equaled 18 per cent o f the
total held on February 26, 1947, and was substantially
in excess o f the net increase o f all trade concern de­
posits. The unincorporated concerns showed a 4.7 per
cent decline in balances, reflecting decreases in all size
groups, although the greater percentage decreases were
in the larger deposit-size groups.
This group of deposits, probably more than any
other, illustrates the pressure that is being placed upon
the current position of all businesses and particularly
the smaller concerns. With no substantial increase in

FEDERAL RESERVE BANK OF RICHMOND

The 17 per cent decline in deposits belonging to trust
accounts handled by the banks may be ascribed pri­
marily to the assumption of a more fully invested posi­
tion for these accounts, and possibly to the changed
date relative to tax payments as compared with the pre­
vious year. The smaller percentage decline in deposits
of nonprofit organizations may be attributed to two
possible causes: the higher expenses of the preceding
year have served to weaken their cash position and the
funds accumulated during the war years have been used
to some extent to make capital expansions.

the physical volume of trade, vendors are forced to
maintain a larger proportion of current assets in inven­
tory and receivables, the former because of higher price
levels and the latter because of the tendency towards
a slowing o f accounts. At the same time, current costs
of operation have continued to increase, placing a
greater demand upon the concerns’ holdings of funds.
The heterogeneous nature of the category “ other
nonfinancial businesses” allows o f little generalization
as to the changes that have occurred. It may be noted,
however, that this group o f holders— including con­
struction contractors, amusement places, hotels, laun­
dries, garages, repair shops, and professional people—
showed the largest percentage increase of the four non­
financial business groups.

Personal deposits showed the smallest year-to-year
dollar increase recorded since the start of the owner­
ship surveys in 1943, and for the first time failed to
show a year-to-year increase as a percentage of total
demand deposits of individuals, partnerships, and cor­
porations. As may be noted from the chart, the level­
ing-off is in sharp contrast to the large gains recorded
from mid-1944 to mid-1946. The reasons for the small
gain and relative decline are as multitudinous as the
groups of people included in the ownership category,
but some generalizations may be made.

Data on deposits of financial businesses were heavily
weighted by the 88 per cent increase in the deposits of
insurance companies, as of course were the figures for
total business and total deposits. This increase was
largely the result o f the decision o f a number of these
companies to shift to a more liquid position in anticipa­
tion of opportunities for increased returns on invest­
ments. The liquidation o f obligations of the United
States Government, following the Christmas eve de­
cline in prices of these securities, placed funds in hand
in excess o f opportunities for desired placement. It is
to be expected that much of the increase in deposits
was o f a temporary nature.
Deposits o f other financial businesses increased by
2.4 per cent, resulting entirely from an increase in cor­
porate balances in excess o f $10,000. Deposits of all
sizes belonging to unincorporated concerns showed de­
clines.




Farmers, who were the owners of 21 per cent of all
personal deposits at the end of the period, managed to
increase their share during the eleven months, showing
a gain of 4.3 per cent as compared with the 1.3 per cent
increase in total personal deposits. This came about in
spite of a leveling-off of cash farm income, increased
operating expenses, and increased outlays for capital
equipment.
Non-farm holders showed an insignificant increase.
Probably this may be partly attributed to the greater
proximity to the Christmas holiday season and to the
January 15 tax payment date as compared with the
previous year. It would appear, however, that there are
yet stronger underlying causes. It is a well-recognized
fact that the continued price increases of the past year
led to dissaving by many persons having fixed incomes
or incomes which failed to increase as rapidly as did
the prices of goods and services customarily purchased;
also, of course, liquid savings were used to acquire pre­
viously scarce durable goods. It may well be assumed
that much of this dissaving took the form of drawing
down bank balances, and that this drain served to offset
increases in balances belonging to persons who were
continuing to save in this form. The leveling-off of the
growth of time deposits would serve to confirm this
view.
The table following gives the complete ownership
record for the nine surveys that have been conducted.
Discussions of past inter-survey changes have appeared
in issues of the Monthly Review following each survey;
a discussion of statistical methods and coverage may be
found in the Monthly Revietv of June 30, 1946, pages
5 and 6.

r4 1

MONTHLY REVIEW

APRIL 1948
ESTIMATED
OWNERSHIP OF DEMAND DEPOSITS OF INDIVID UALS
PARTNERSHIPS, AND CORPORATIONS
Fifth District
July
1943

Feb.
1944

July
1944

Jan.
1945

Total business ................................................ .. 1,670

1,610

1,675

1,889

2,022

July
1945

July
1946

Feb.
1947

Jan.
1948

2,133

2,236

2,223

2,389

Jan.
1946

(Millions of dollars)*
Nonfinancial business:

............................ .. 1,460

Manufacturing and mining ................
Public utilities, transportation, and
communications ....................................
Retail and wholesale trade..................
All other nonfinancial business...........

520
220
540
180

1,420

470
200
560
190

1,474

495
194
596
190

1,665

504
228
725
207

1,794

574
241
764
215

1,863

529
228
888
218

1,930

568
226
889
247

1,916

581
231
853
251

2,003

Financial business: ....................................

210

190

201

224

228

270

306

307

386

75
149
57
166
1,332

64
164
52
159
1,377

72
197
69
192
1,633

76
230
68
204
1,735

83
224
85
271
1,805

156
230
70
249
1,828

3,611

4,028

4,247

4,383

4,540

53.0

52.6

50.7

52.6

15.9
6.7
21.2
6.0

46.3

13.1
5.7
22.0
5.4

45.4

13.4
5.3
20.9
5.8

43.7

13.3
5.3
19.4
5.7

44.1

6.3

6.7

7.2

7.0

8.5

Insurance companies ..............................
70
All other financial business.................. 140
Trust funds of banks...................................... 40
Nonprofit associations .................................. 110
Personal ........................................................... 1,040
Foreign .............................................................
10

60
130
40
120
1,060

64
137
47
128
1,064

Total .................................................... ................ 2,870

2,840

2,915

58.2

56.7

57.5

54.9

56.0

Manufacturing and mining .............. .
Public utilities, transportation, and
communications ...................................
Retail and wholesale trade..................
All other nonfinancial business...........

50.9

18.1
7.7
18.8
6.3

50.0

16.6
7.0
19.7
6.7

50.6

17.0
6.7
20.4
6.5

48.4

14.6
6.6
21.1
6.0

49.7

Financial business: ....................................

7.3

6.7

10

3,443

607
242
890
265

1

2

5

3

(Percentage of total)
Total business .................................................
Nonfinancial business:

............................ .

2.1
4.6
1.4
4.2
37.3

6.9

2.2
4.7
1.6
4.4
36.5

6.5

2.2
4.3
1.7
4.8
38.7

1.8
4.5
1.4
4.4
38.1

. 100.0
100.0
Note: Owing to rounding, details may not add to totals.

100.0

100.0

100.0

Insurance comoanies ..............................
All other financial business..................
Trust funds of banks......................................
Nonprofit associations ..................................
Personal ...........................................................
Foreign .............................................................
Total ...................................................................




2.4
4.9
1.4
3.8
36.2
.4

.4

1.8
4.9
1.7
4.8
40.5
.1
100.0

1.8
5.4
1.6
4.8
40.9
.1
100.0

1.9
5.1
1.9
6.2
41.2
100.0

13.4
5.3
19.6
5.8

3.4
5.1
1.5
5.5
40.3
.1
100.0

FEDERAL RESERVE BANK OF RICHMOND

ASSETS AND LIABILITIES—MEMBER BANKS, FIFTH FEDERAL RESERVE DISTRICT

(Amounts in thousands of dollars)
1947
1947
1946
Dec. 31
June 30
Dec. 31
ASSETS
Loans and investments...................................................................................................
Loans (including overdrafts)...............................................................................—
United States Government direct obligations......................................................
Obligations guaranteed by United States Government........................................
Obligations of States and political subdivisions....................................................
Other bonds, notes and debentures.........................................................................
Corporate stocks (including Federal Reserve Bank stock)..............................
Reserves, cash, and bank balances...............................................................................
Reserve with Federal Reserve Bank.....................................................................
Demand balances with banks in United States (except private banks
and American branches of foreign banks)........................................................
Other balances with banks in United States........................................................
Balances with banks in foreign countries..............................................................
Cash items in process of collection.........................................................................
Bank premises owned and furniture and fixtures...............................................
Other real estate owned..............................................................................................
Investments and other assets indirectly representing bank premises or
Customers’ liability on acceptances.............................................................................
Other assets....................................................................................................................

4,349,321
1,436,336
2,662,920
512
108,865
131,247
9,441
1,623,323
789,370
127,010
406,469
2,689
72
297,713
46,274
870
722
15,350

4,240,670
1,263,342
2,732,310
537
100,297
134,715
9,469
1,391,244
708,965
103,272
347,707
2,991
83
228,226
45,522
685
2,673
1,146
14,658

4,352,613
1,149,106
2,972,371
488
92,452
128,946
9,250
1,493,796
733,924
125,931
368,064
1,762
191
263,924
44,896
760
2,693
986
13,787

6,038,497

5,696,597

5,909,531

Time Deposits ...............................................................................................................
Individuals, partnerships, and corporations........................................................
United States Government.......................................................................................
States and political subdivisions.............................................................................
Banks in the United States.................................. ............................- .....................
Total deposits.................................................................................................................
Bills payable, rediscounts, and other liabilities for borrowed money...................
Acceptances outstanding.............................................................................................
Other liabilities — ................................ - ....................................................................

4,342,505
3,383,716
73t133
318,396
480,273
5,175
81,812
1,304,320
1,265,685
12,912
192
20,295
5,236
5,646,825
3,455
722
25,656

4,000,850
3,196,542
34,804
20,834
302,610
375,928
4,041
66,091
1,313,603
1,275,520
13,687
192
18,685
5,519
5,314,453
3,230
1,137
25,125

4,262,543
3,271,716
125,117
21,972
273,305
469,060
7,353
94,020
1,282,101
1,245,481
13,360
348
17,020
5,892
5,544,644
1,631
986
24,027

Total liabilities...................................................................................................

5,676,658

5,343,945

5,571,288

Surplus ..........................................................................................................................
Undivided profits........................................................................................................
Other capital accounts...................................................................................................
Total capital accounts.......................................................................................

115,702
162,775
58,619
24,743
361,839

115,090
156,376
58,002
23,184
352,652

113,476
150,687
51,854
22,226
338,243

Total liabilities and capital accounts..............................................................

6,038,497

5,696,597

5,909,531

Number of banks...........................................................................................................

475

2,637

LIABILITIES
Individuals, partnerships, and corporations..........................................................
U. S. Government: War Loan and Series E bond accounts........................ |)
Other ....................................... ...........................................
States and political subdivisions.............................................................................
Banks in United States.............................................................................................
Banks in foreign countries.......................................................................................
Certified and officers’ checks, cash letters of credit and travelers’

CAPITAL ACCOUNTS




476

475

MONTHLY REVIEW

APRIL 1948

Changes In Condition Report Items of Fifth District*
Member Banks, 1947
The downward movement of total loans and invest­
ments of Fifth District member banks was reversed dur­
ing the second half of 1947 and the total amount as of
December 31, 1947 approximately equalled the total of
December 31, 1946. Loans showed an increase of 25 per
cent over last December's figures, while U. S. Govern­
ments continued their decline by decreasing 10 per cent
during the year. Total deposits experienced an increase
during the second half of 1947, as did demand deposits
adjusted— total demand deposits less those due to banks
and the U. S. Government and less cash items in process
of collection— but United States Government deposits
continued to shrink, declining by 50 per cent from the
December 31, 1946, figure. Capital accounts continued
their upward trend but at a very gradual rate, the year’s
increase being 7 per cent.

P RINCIPAL A S S E T S AND L I A B I L I T I E S
F I F T H D I S T R I C T MEMBER BANKS
( B I L L I O N S OF D O L L A R S )

was an increase of $100 million over the total of a year
ago. These loans have shown a decided seasonal variation
in their upward trend since mid-1945, as can be seen in
the accompanying chart, with an accelerated increase oc­
curring in the second half of each year.
Real estate loans increased 37 per cent over last year’s
figures bringing the aggregate amount to $480 million, an
absolute increase of $116 million. The breakdown of real
estate loans shows that loans on residential property in­
creased 41 per cent; on other properties 31 per cent; and
on farm land 28 per cent.
The growth of consumer loans was the most spectacu­
lar increase of all loans during the past year— an increase
of $83 million or 39 per cent. The growth of consumer
loans commenced in early 1945 at a gradual rate, which
has since increased to provide substantial semi-annual
increments. Retail automobile instalment loans expand­
ed 97 per cent during 1947, while other retail, repair and
modernization instalment loans increased 87 per cent.
Gains occurred during the past six months in all other
categories of bank-extended consumer credit.
Loans for purchasing and carrying securities showed
a further decline from the high level reached in 1944 and

Loans maintained their upward trend which began in
mid-1945, as total loans increased to $1,436 million from
$1,263 million on June 30, 1947, and from $1,149 mil­
lion on December 31, 1946. The gains were once again
concentrated in the three major categories o f loans, i. e.,
commercial and industrial loans, real estate loans, and
consumer loans. On December 31, 1947, these comprised
89 per cent of all loans in the member banks' portfolios
in the Fifth Federal Reserve District. Commercial and
industrial loans reached a peak o f $550 million, which
♦The F ifth Federal Reserve D istrict includes M aryland, D istrict o f Columbia,
Carolina.

Carolina, and South



V irginia,

W est V irgin ia

(excep t the six

northern

cou nties),

N orth

FEDERAL RESERVE BANK OF RICHMOND

1945; however, for the past six months the downward
trend leveled off to a large extent. Total loans to farmers
were up 19 per cent over last year’s amount. All other
loans showed a decrease from December 31,1946, figures
but an increase over the mid-year amount, both changes
being of little importance.
Holdings of United States Government obligations by
Fifth District member banks continued the steady de­
cline which began after December 31, 1945, when the
peak of $3,559 million was reached. The total amount of
holdings now stands at $2,663 million. The major de­
cline again occurred in Treasury certificates of indebted­
ness and Treasury notes. The former declined $221 mil­
lion or 42 per cent and the latter $37 million or 15 per
cent during the year 1947.
Portfolios of all other types of securities increased
from their levels of a year ago and holdings of munici­
pal and state issues increased from the June level. Obli­
gations guaranteed by United States Government, other
bonds, notes and debentures, and corporate stocks de­
creased in amount slightly from the June figures.

Cash assets, after declining during the first six months
of the year, recovered during the second half and ended
the year substantially above the December 31, 1946,
amount. The increase in balances with other banks con­
tributed to the expansion during the year and it may be
noted that the corresponding liability item— due to other
banks— decreased for member banks of the District taken
collectively.
Total deposit liabilities increased 2 per cent over the
past year. In both demand and time deposits, the de­
posits of United States Government and postal savings
deposits declined, but other categories showed increases.
Demand deposits of individuals, partnerships, and cor­
porations increased $112 million over the December 31,
1946, figure and those of state and political subdivisions
$45 million. The growth in time deposits that commenced
in 1942 is still continuing.
Total capital accounts increased from $353 million on
June 30 to $362 million on December 31, a gain of 2.6
per cent. The major part of this growth in capital ac­
counts arose from accumulated surplus.

CLASSIFICATION OF LOANS AND UNITED STATES GOVERNMENT DIRECT OBLIGATIONS
MEMBER BANKS— FIFTH FEDERAL RESERVE DISTRICT

1947
Dec. 31
Loans .......................................................................................................
Commercial and industrial loans, including open-market paper.
Loans to farmers directly guaranteed by the Commodity Credit
Corporation.....................................................................................
Other loans to farmers......................................................................
Loans to brokers and dealers in securities................................ —
Other loans for purchasing or carrying securities......................
Real-estate loans: On farm land..—.............................................
On residential property ................................
On other properties ......................................
Loans to banks...................................................................................
Other loans to individuals:
Retail automobile instalment paper................... ............. ..... .
Other retail instalment paper........................................................
Repair and modernization instalment loans................. ............
Instalment cash loans.....................................................................
Single-payment loans...................................................................
All other loans (including overdrafts)..........................................
United States Government direct obligations..................................
Treasury Bills ...................................................................................
Treasury certificates of indebtedness..............................................
Treasury notes...................................................................................
United States savings bonds........................„..................................
Other bonds maturing in 5 years or less........................................
Other bonds maturing in 5 to 10 years..........................................
Other bonds maturing in 10 to 20 years........................................
Bonds maturing after 20 years........................................................




1,436,336
550,266
879
28,788
8,735
68,364
38,268
281,568
108,514
3,312
41,779
11,374
15,759
47,016
183,160
48,554
2,662,920
35,782
299,768
200,413
91,247
718,427
1,002,887
219,446
102,950

(In thousands of dollars)
1947
June 30

j

1,263,342
469,840
216
36,184
8,203
69,345
36,194
240,385
94,341
3,574
32,859
9,124
11,194
42,684
162,465
46,734

i

2,732,310
30,313
391,945
174,302
46,404
579,827
1,203,279
195,417
110,823

1946
Dec. 31
1,149,106
450,617
726
24,157
17,009
75,860
29,948
199,251
82,938
2,299

i

21,238
6,134
8,346
31,118
148,806
50,659
2,972,371
31,408
520,969
237,079
48,172
507,045
1,318,581
190,939
118,178

MONTHLY REVIEW

APRIL 1948

AVERAGE DAILY TOTAL DEPOSITS* OF
MEMBER BANKS
Last half of Feb. Last half of Mar.
%of
%of
$ thousands U. S. $ thousands U. S.

PRINCIPAL A S S E T S AND L I A B I L I T I E S
FIFTH DIS TR IC T M E M B E R BANKS

1941

1943

1945

996,460
.93
Maryland
634,773
.59
Reserve city banks
.34
Country banks
361,687
919,675
.86
District of Columbia
897,955
.84
Reserve city banks
.02
21,720
Country banks
1,279,645 1.20
Virginia
.28
296,044
Reserve city banks
.92
983,601
Country banks
584,882
.55
West Virginia
.77
825,581
North Carolina
.35
377,790
Reserve city banks
.42
447,791
Country banks
.41
436,998
South Carolina
5,043,241 4.71
Fifth District
United States (millions) 106,992 100.0
^Excluding interbank demand deposits.

1947

Business Conditions
(Continued from page 2)

tion of the country’s retail outlets, there will not be much
upward pressure exerted on commodity prices over the
next three or four months as a result of this policy.
Department store sales in the Fifth District after sea­
sonal correction rose 4 percent from February to March
and indications thus far in April indicate April will hold
at about the same level as in March after seasonal adjust­
ment. Relative to March 1947, department store sales in
March 1948 were 3 percent higher. This rise in sales
compares with a rise of around 7 percent in the clothing,
housefurnishing and miscellaneous items of the consu­
mers price index in Baltimore and Richmond. Major




996,366
.94
630,916
.60
365,450
.34
.87
917,534
.85
895,905
21,629
.02
1,266,977 1.20
.27
288,737
.93
978,240
.56
590,631
.79
833,509
.37
393,017
.42
440,492
.41
432,335
4.76
5,037,352
105,774 100.0

household appliances are no longer showing the sales
gains recorded over the past two years, and if these sales
flatten out as figures thus far indicate it will be more
difficult for total store sales to continue showing gains
over last year’s level.
Stores in the District are still over-inventoried and
even with the relatively good level of sales in March, in­
ventories at the end of the month declined only 1 per­
cent from the end of February level on a seasonally ad­
justed basis. End of March inventories were 11 percent
above the level of a year ago.
Sales of most wholesale lines rose more than season­
ally in March, but failed in all cases to reach peak levels
previously established. In fact most wholesale lines give
the impression that the trend has flattened out.

r9 ]

FEDERAL RESERVE BANK OF RICHMOND

ITE M S

DEBITS TO IN D IV ID U A L A C C O U N TS

F E D E R A L R E S E R V E B A N K OF RICHM ON D
(A ll Figures in Thousands)
A p ril 14,
Chg. in A m t. From
4-16-47
1948
3-17-48

(000 om itted)

T otal Gold Reserves..................................... $1,084,601
Other Reserves ...........................................
20,177
Total Reserves ......................................... 1,104,778
Bills Discounted .........................................
12,714
Industrial Advances ...................................
46
Gov. Securities, T otal................................... 1,337,415
Bonds ..........................................................
378,953
Notes ............................................................
125,118
Certificates ...............................................
282,038
Bills ..............................................................
551,306
T otal Bills & Securities............................... 1,350,175

— 3,975
— 1,163
— 5,138
— 7,495
+
1?
+ 14,315
+ 12 ,49 3
+ 9,901
+ 3,446
— 11,525
+ 6,837

+ 76,154
+
4,594
— 80,748
+
7,466
+
46
— 97,164
+ 332,576
+ 103,462
— 72,521
— 460,681
— 89,652

Uncollected Items .......................................
259,143
Other Assets ..................................................
27,636
Total Assets ............................................. 2,741,732

— 28,946
+
83
— 27,164

+
+
+

Fed. Res. Notes in C ir................................ 1,627,662
Deposits, Total ..............................................
824,148
M embers' Reserves .................................
721,873
U. S. Treas. Gen. A cct..........................
75,056
Foreign ........................................................
20,222
Other Deposits .........................................
6,997
D ef. A vailability Item s...............................
250,512
Other Liabilities .........................................
991
Capital A ccounts .........................................
38,419
T otal Liabilities ....................................... 2,741,732

— 23,736
— 8,413
— 27,567
+ 22 ,19 4
— 2,651
—
389
+ 3,847
+
227
+
911
— 27,164

— 55,397
26,877
8,843
32,428
1,267
2,025
30,708
372
3,100
5,660

ITEM S

4,812
9,752
5,660

41 R E P O R T IN G M EM B E R B A N K S — 5th D istrict
(A ll Figures in Thousands)
A p ril 14,Chg. in.A m t. From
1948
3-17-48
4-16-47

T otal Loans ..................................................$ 823,544
Bus. & A g r i...............................................
405,729
R eal Estate Loans...................................
180,296
237,519
A ll Other Loans.......................................
Total Security H oldings............................. 1,710,126
U. S. Treasury Bills ...............................
49,849
U. S. Treasury Certificates ....................
170,058
U. S. Treasury Notes ...............................
81,887
U. S. Govt. Bonds ................................... 1,282,391
Other Bonds, Stocks & Sec...................
125,941
Cash Items in Process o f Col...................
252,866
Due from Banks...........................................
164,974*
Currency & Coin...........................................
65,282
Reserve with F. R. Bank..........................
479,337
Other Assets ..................................................
53,803
Total Assets .................................................. 3,549,932

— 4,041
— 4,847
+ 2,777
— 1,971
— 49,230
— 5,193
— 6,908
— 14,529
— 23,444
+
844
+ 3 0 ,7 1 2
— 3,989
+ 3,079
— 15,894
—
859
— 40,222

+134,180
+ 71,912
+ 44,434
+ 17,834
— 172,274
+ 19,210
— 92,548
— 14,837
— 87,714
+
3,615
+ 53,396
+
5,600
+
5,134
—
3,122
+
4,912
+ 27,826

Total Demand Deposits...............................$2,710,922
Deposits o f Individuals .......................... 2,001,903
Deposits o f U. S. Gov...............................
67,906
Deposits o f State & L ocal Gov.............
228,327
Deposits o f Banks ...................................
373,084*
Certified & Officers’ Checks..................
39,702
605,099
Total Tim e Deposits.....................................
Deposits o f Individuals.............................
587,237
Other Tim e Deposits...............................
17,862
Liabilities fo r B orrow ed M oney................
3,000
A ll Other Liabilities.....................................
16,821
Capital Accounts .........................................
214,090
Total Liabilities ........................................ - 3,549,932

— 29,784
— 25,823
+ 5,771
+ 25 ,51 5
— 17,565
— 17,682
— 1,282
—
418
—
864
— 9,400
—
433
+
677
— 40,222

+
+
—
+
—
—
—
+
—
+
—
+
+

25,574
25,696
24,134
47,075
15,557
7,506
10,925
9,944
981
1,869
2,862
14,670
27,826

March
1948

STATE S

Maryland ...........................$19,488,000
Dist. o f Columbia............ 10,483,000
V irgin ia ............................. 14,908,000
W est V irgin ia .................. 8,499,000
N orth Carolina ............8,644,000
—
South Carolina ................ 6,378,000
F ifth D istrict ................$68,400,000
S ource: F. W . Dodge Corp.

M O NTH S

$ 38,241,000
14,431,000
28,635,000
24,961,000
17,717,000
14,487,000
$138,472,000

477
417
254
1,250
694

$ 559,000
170,000
697,000
$ 818,000
1,248,000

% Chg.
from
i Mos. *47

+ 20

$ 2,123,848

+ 13

+ 17
- 2
0
+ 10

2,831,130
58,258
52,297
77,053

+ 8
—1
+ 2
+ 8
+ 6
+1
2

+
+
+
+
+
+

5
12
5
23
17
2
2
5
12

141,640
678,705
261,778
221,291
35,071
284,316
99,439
40,219
353,613

+
+
+

11
4
12
10

160,690
271,741
234,818
143,258

+ 2
b 8
-1 0
-13
-11
- 4
-1 4
-1 2

64,460
78,626
113,375
95,924
519,439
58,280
1,276,588
243,690

+
+
+
+
+

29
10
31
31
18

— 5

+ 20

— 13
— 3

+ 1
+ 1

— 9

+

9

+ 9
+ 14
+ 19

+ 5

— 7
+ 13
— 13
— 14
-- 7

—8
— 15

126,450
392,874
92,939
171,356
75,239

+ 26
+ 14

+22

+ 24

+ 6

COTTON C O N SU M PT IO N A N D ON H A N D — B A L E S
March
1948

M arch
1947

441,146

422,369

3,196,796

3,367,679

774,577

767,341

5,555,507

6,069,037

. 1,894,671
. 3,606,929

1,895,897
3,280,521
6,301,316

6,928,094

A ug. 1 to Mar. 31
1948
1947

Fifth D istrict S tates:
Cotton G row ing S tates:
Cotton on hand M arch 31 in
United S tates:
. 878,714
875,306
Cotton on hand M arch 31 in
consum ing establishments, . 2,286,114 2,234,321
storage and compresses... . 3,676,735 3,339,213
Spindle3 active, U. S................ 21,708,000 21,959,000
S ource: Departm ent o f Commerce

COTTON C O N SU M PT IO N — F IF T H D ISTRIC T
(In Bales)
N. Carolina

S. Carolina

V irgin ia

District

239,732
209,721
227,207
681,121
693,039

181,265
159,782
176,195
517,366
532,870

20,149
17,753
18,967
56,340
57,608

441,146
387,256
422,369
1,254,827
1,283,517

S ource: Departm ent o f Commerce.
C OTTON T E X T IL E S
March
1948

+ 28
+
3
—
8
+180
— 23
+ 81
+ 21

Tw ill (1) ................
Drills, average (4)

COM M ER C IA L F A IL U R E S
N um ber o f Failures
T otal Liabilities
Dist.
U.S.
D istrict
U . S.

M arch 1948 .. ..............
29
February 1948 .............
14
M arch 1947
.............
9
3 Months 1948. .............
49
3 Months 1947. .............
21
S ou rce: Dun & Bradstreet




+124
+117
—
8
+ 47
8
+ 51
+ 39

% Chg.
from
2 Mos. ’ 47

3 Mos.
1948

District o f Columbia
W ashington .............. ....$
757,351
M aryland
Baltim ore ..................
1,041,476
Cumberland ..............
20,043
Frederick ..................
18,804
H agerstow n ..............
27,119
N orth Carolina
A sheville ....................
48,848
Charlotte ....................
234,451
Durham ......................
91,562
Greensboro ................
77,589
12,074
Raleigh ......................
111,485
W ilm ington ..............
34,058
12,969
W inston-Salem ........
129,375
South Carolina
Charleston ................
56,041
C o lu m b ia ....................
92,436
Greenville ..................
81,039
Spartanburg ............
49,132
V irginia
Charlottesville ..........
20,919
Danville ....................
25,355
L ynchburg ................
38,718
N ew port News .......
33,762
N orfolk ......................
181,586
Portsm outh ..............
19,641
Richm ond ..................
460,480
R oanoke ....................
85,615
W est V irgin ia
Bluefield ....................
44,162
Charleston ................
137,494
Clarksburg ................
33,276
H untington ..............
61,047
P a rk e rs b u rg ..............
27,673

♦Net Figures, reciprocal balances being eliminated.

CO N STRU CTIO N CO N TRA C TS A W A R D E D
% Chg.
Feb.
from
1948
Feb. 1947
2 Mos. ’ 48

% Chg.
from
M ar. 1947

February
1948

87.11
110.00
77.86
79.86
70.83
97.61
63.25

90.90
120.72
79,63
79.86
69.55
97.61
63.22

M arch
1947
88.19
114.40
79.45
79.86
67.97
97.61
62.54

N o te : The above figures are those fo r the approxim ate quantities o f
cloth obtainable from a pound o f cotton with adjustm ents fo r salable
waste.

$17,481,000
25,619,000
15,251,000
$56,065,000
43,420,000

D E PO SITS IN M U T U A L S A V IN G S B A N K
8 Baltim ore Banks
M ar. 31, 1948
T otal Deposits .......................... $392,783,344

[10]

Feb. 29, 1948

Mar. 31, 1947

$391,579,209

$385,209,962

MONTHLY REVIEW

APRIL 1948

W H O L E SA L E T R A D E — 198 FIRMS

B U ILD IN G PE R M IT FIG U R ES

N et Sales
Stocks
R atio M arch
M arch 1948 M arch 81, 1948 collections
com pared with com pared w ith
to acc’ ts
M ar.
Feb. M ar. 31 Feb. 29 outstand’g
Mar. :
1947
1948
1947
1948

Total Valuation
March 1948
M arch 1947
Maryland
Baltim ore ................................................................. $2,897,080
Cumberland .............................................................
40,350
Frederick .................................................................
61,650
H agerstow n
...........................................................
66,410
Salisbury .................................................................
733,556
V irginia
Danville ....................................................................
143,065
Lynchburg ...............................................................
225,570
N orfolk
....................................................................
713,870
Petersburg ...............................................................
131,239
Portsm outh .............................................................
169,615
R ichm ond .................................................................
2,315,118
Roanoke ......................................................................
456,729
W est V irginia
Charleston ...............................................................
1,709,991
Clarksburg ...............................................................
428,982
H untington ...............................................................
530,965
North Carolina
Asheville ...................................................................
229,521
Charlotte ...................................................................
1,694,441
Durham .....................................................................
2,866,915
Greensboro ...............................................................
548,045
H igh Point .............................................................
620,041
Raleigh .....................................................................
510,620
R ocky M ount .........................................................
277,200
Salisbury ...................................................................
78,970
W inston-Salem .......................................................
904,451
South Carolina
Charleston ...............................................................
303,338
Columbia ...................................................................
1,039,318
Greenville .................................................................
320,900
Spartanburg .............................................................
161,258
District o f Columbia
W ashington .............................................................
3,543,728

$ 2,602,855
59,595
55,850
239,100
147,045
283,287
230,142
413,815
91,100
50,013
601,198
275,417
837,543
54,615
244,610
202,101
708,221
314,675
386,080
135,625
164,600
74,450
57,865
395,060
83,725
222,515
92,350
104,433
3,823,021

D istrict Totals
.................................................... $23,722,936
3 Months ................................................................. $60,780,789

$12,450,906
$41,447,934

M arch
1948

Maryland

% in Dist...

8,476
1,042
108
9,626
34,016
28

March
1947

%
Chg.

3 Mos.
1948

3 Mos.
1947

14,948
1,710
177
16,835
55,455
30

— 43
— 39
— 39
— 43
— 39

37,353
4,364
375
42,092
138,186
30

44,440
5,042
616
50,098
165,957
30

% Chg.
from
M ar. 1947

S m oking & Chewing tobacco
(Thousands o f lb s.)..............
16,774
Cigarettes (Thousands) ........29,154,293
Cigars (Thousands) ..................
470,099
S nuff (Thousands o f lb s .)........
3,558

+ 6
+ 10
11
+
+ 15

+ 2
+ 38
+ 23
+ 11
+ 5
+ 8
0
+ 12
+ 9
+ 14

( 6)*..

D ry Goods (18)*..
Groceries (5 8)* ..

+ 11

+
+
+
+
+
+
+
+
+
+
+

20
13
30
30
11
17
11
13
12
17
16

+ 2
+ 9
—2

73
102
88

+ 4
+ 29
+ 13

0
+ 8
—2

-4
+ 46
+ 31

+ 4
0
+ 2

121
75
172
103
129
99
104

f-10
-60
-55
....

S ource: Departm ent o f Commerce
♦Number o f reporting firms

R E T A IL F U R N IT U R E SALE S
Percentage Changes in Mar. and 3 Mos. '48
Compared with Compared with
March 1947
3 Mos. 19<

STATES

M aryland (5 )* .................................
Dist. o f Columbia ( 6) * ................
V irgin ia (2 0 )* .................................
W est V irginia ( 10)* ....................
N orth Carolina (1 5 )* ....................
South Carolina ( 8) * ......................
D istrict (6 4 )* ...............................
Individual Cities
Baltim ore, Md., (5 )* ....................
W ashington, D. C., ( 6) * ................
Richm ond, V a., ( 6) * ......................
Charleston, W . V a., (3 )* ............
Charlotte, N . C., (4 )* ..................

+
—
—
+
—
+

12
17
6
9
3
17
0

+
—
—
—
—
+
+

10
3
3
1
6
9
1

+
—
—
—
—

12
17
8
13
9

+
—
—
—
—

10
3
10
8
15

%
Chg.
—
—
—
—
—

16
13
39
16
17

D E P A R T M E N T STO R E T R A D E
R ichm ond

B altim ore

W ashington

Other Cities

D istrict

Percentage chg. in M arch 1948 sales, com pared with sales in M arch *47:
+ 13
+ 3
+ 3
+13
+ 8
Percentage chg. in 3 moa. sales 1948, com pared w ith 3 mos. in 1947:
+ 3
+ 5
+ 7
+ 7
+ 8

TOBACCO M A N U FA C TU R IN G
March
1948

E lectrical Goods

^Number o f reporting stores

SOFT C O A L P R O D U C TIO N IN T H OU SAN D S OF TO N S
REG ION S

LIN ES

3 Mos.
1948
47,0ff7
79,781,847
1,391,638
10,813

% Chg.
from
3 Mos. *47

+ 1
2
+ 1

—

+ 15

Percentage chg. in stocks on Mar. 31, 1948, com pared with Mar. 31, ’ 47:
+ 14
+ 2
+14
+ 5
—
8
P ercentage chg. in outstanding orders Mar. 31, 1948 from Mar. 31, 1947:
— 36
— 28
— 15
+ 8
— 23
Percentage chg. in receivables M ar. 31, ’ 48 from those on Mar. 31, '4 7 :
+ 23
+23
+27
+27
+ 47
P ercentage o f current receivables as o f Mar. 1, 1948 collected in M a rc h :
50
48
50
45
33
P ercentage o f instalm ent receivables as o f M ar. 1, 1948, collected in M a r .:
19
26
22
29
23

R A Y O N Y A R N SH IPM EN TS A N D STOCKS
M arch
1948
R ayon
Staple
R ayon
Staple

February
1948

M arch
1947

Maryland Dist. o f Col. V irg in ia W . V irgin ia N o. Carolina So. Carolina

yarn shipments, lbs............. 67,900,000
fiber shipments, lbs............... 22,900,000
yarn stocks, lbs.................
8,800,000
fiber stocks, lbs...................
5,400.000

62,200,000
20,400,000
8,800,000
5,300,000

62.700.000
15.500.000
6,800,000
2,500,000

Percentage chg. in M arch 1948 sales from M arch 1947 sales, by s ta te s:
+ 4
+ 8
+14
+27
+12
+16

S ou rce: R ayon Organon




Percentage chg. in 3 m onths 1948 sales from
+ 3
+ 5
+ 9
+18

3 m onths 1947 s a le s :
+ 6
+10