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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
