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FEDi
'RESERVE BANK a
RICHMOND
O H O #
APRIL 1951
CASH versus CREDIT in FIFTH DISTRICT RETAIL SALES
INSTALMENT
CHARGE ACCT.
HI CASH
JEWELRY
FURNITURE
AND FURNISHINGS
HOUSEHOLD
APPLIANCES
AUTOMOBILE
MISCELLANEOUS
FARM IMPLEMENT
HARDWARE 8
AUTO ACCESSORY
HEATING,
PLUMBING, ETC.
DEPARTMENT
AND GENERAL
APPAREL
FUEL, FUEL OIL
AND ICE
:*
•V
>1*
►V
ALL
RETAIL STORES
T
he
reports of more than 10,000 business firms
in the Fifth District registering under Regu
lation W shed considerable light on credit sales
1
Also In This Issue - Fifth District Trend C h arts______________Page
2
and instalment lending in the District. The above
1950— Record Year for State and Municipal
Bond O fferin g s_____________________Page
5
chart indicates how financing took place at District
Residential M ortgage L e n d e r s __________ Page
7
stores, and the article beginning on page 3 analyzes
N ew Developments in Treasury I s s u e s __Page
9
consumer financing of reporting firms throughout
Business Conditions and P r o sp ects______ Page 10
the District.
Statistical D a ta _________________________ Page 12
FEDERAL RESERVE BANK OF RICHMOND
F
if t h
D
is t r ic t
TOTAL BUILDING CONTRACT AWARDS
Due mainly to large gains in factory and residential construction,
total adjusted contract awards in February have been exceeded in
only one previous month of record. Commercial construction, as a
consequence of the freeze, dropped 32% from January to February.
T
r e n d s
BUILDING CONTRACT AWARDS - ONE and TWO FAMILY HOUSES
Despite the tightening of credit and the expected cutback later on,
one- and two-family house construction in February was at a new
high level. Contract awards for this type of house rose 19% from
January to February, on an adjusted basis, to 48% ahead of a year
ago.
♦ *
DEPARTMENT STORE INVENTORIES
Adjusted sales of department stores dropped 8 % from January to
February, but store inventories continued to rise, gaining 10% dur
ing the month. Relative to a year ago, department store sales were
up 14% while inventories were up 25% .
RETAIL FURNITURE STORE INVENTORIES
Anticipations of furniture shortages had their influence on etore
inventories which in February rose 13% over January on an ad
justed basis to a level 54% ahead of a year ago. Although ad
justed sales rose 3% from January to February, they were 2 %
smaller than a year ago.
♦ + ♦
COTTON CONSUMPTION
Despite the stalemate in new business of cotton mills during
February, the backlog of orders was sufficient to warrant a rising
level of production. Adjusted mill consumption in cotton rose 4 %
from January to February to a levele 18% ahead of a year ago.
WHOLESALE HARDWARE SALES
Hardware wholesalers experienced a reduction in sales of more
than seasonal proportion from January to February, but February
sales were running 52% ahead of last year. Undoubtedly large retail
stocks have influenced the February reduction.
MONTHLY REVIEW
APRIL 1951
Consumer Credit in the Fifth District
than ten thousand business firms, carrying
Am ong reporting stores, one dollar in five was spent
in department and general stores while one dollar in ten
almost $1.5 billion of consumer debt, had filed
went to furniture dealers. N o other line of trade ac
Regulation W resigstration statements with the Federal
counted
for as much as three per cent of the total sales
Reserve Bank of Richmond by the end of 1950. The
volume, except household appliance dealers and fuel and
8,037 retail sellers registered had annual sales of $3
oil dealers whose shares were 4 % and 3 % of the total
billion, and held over $350 million of receivables on
respectively.
September 30. The 2,511 lending agencies registered
O f cash purchases of goods made at reporting retail
held over $1.1 billion of consumer instalment loans at
stores, three dollars out of five was rung up by automo
the end of September.
bile dealers’ cash registers and one dollar out of five
The above facts were obtained from Regulation W
went into department and general store tills. Furniture
registration statements submitted to the Federal Reserve
dealers were next in importanc^but their share was only
Bank of Richmond by Fifth District businesses, and
4 % of the total cash volume reported.
there follows an analysis of the financing habits ot Fifth
District businesses. Each business making instalment
Automobile dealers accounted for 63% of total instal
sales of any listed article, making instalment loans, or
ment sales made by reporting institutions in the year
purchasing, discounting or
ended September 30. Furni
lending on instalment credit
ture and home furnishings
AVERAGE MATURITY OF CHARGE ACCOUNTS
obligations a s defined in
establishments ranked sec
FIFTH DISTRICT
Regulation W was required
ond in importance in the
to file a statement with the
District, so far as instal
FUEL AND FUEL OIL | 46 OAYS TO MATURITY
Federal Reserve bank of the
ment sales were concerned,
MISCELLANEOUS
~ 1 55
District in which the main
and a much greater propor
HEATING. PLUMBING. ETC.
I 64
office of the registrant is lo
tion of total sales reported
AUTOMOBILE
I 65
:
cated.
by these concerns was in
DEPARTMENT OR GENERAL
1 67
It is noteworthy that the
stalment sales than in the
APPAREL
t 69
■•sVperiod covered by the regis
case of automobile dealers.
ALL RETAIL S T Q R E S ^ ^ 69
_________
tration statement, i.e., the
Department a n d general
FARM IMPLEMENT
| 77
year ended September 30,
stores made 8 % of instal
HOUSEHOLD APPLIANCE & RADIO
83
1950, was one of sharp ex
------------------------------------1
^
'
’
—HARDWARE
ment
sales reported by reg8 AUTO ACCESSORY
[ 85
pansion in economic activ
isrants while household ap
JEWELRY____________ | 86
ity. W hile the demand for
pliance dealers made 5% of
FURNITURE S HOUSEHOLD FURNISHINGS
H7
consumer goods increased
the total.
during the first half of 1950,
Charge account sales at
a buying rush followed the outbreak of war in Korea.
department and general stores were responsible for 36%
Increased sales were reflected in the rise in consumer
of the sales of this type reported by registrants. A uto
debt. The Federal Reserve Board’s consumer credit
mobile dealers accounted for a smaller proportion of all
statistics show that consumer debt for goods and serv
registrants’ charge-account sales than was the case for
ices rose from $17.7 billion at the end of June to $19.3
either cash or instalment sales. They accounted, how
billion at the end of September, and the figure for the
ever, for 25% of the total volume reported. Other
latter month was nearly $4.4 billion greater than a year
dealers of importance in the over-all picture included
earlier. Consumers owed $4.2 billion on automobiles at
fuel and ice, heating and plumbing, and furniture.
the end of September, $400 million more than at the
Reporting hardware stores sold a greater proportion
end of June and $1.3 billion more than a year earlier.
( 4 2 % ) of their goods for cash than did any other line.
M
ore
Sellers
Hardware stores were followed by automobile dealers,
department and general stores, and apparel stores, all of
which reported 41% of the sales as cash. A t the other
end of the scale were furniture dealers and heating and
plumbing dealers, each of whom sold only 17% of their
wares for cash.
Instalment credit made up 72% of jewelry store sales,
67 % of furniture sales, 54% of household appliance and
radio store sales, and 48% of automobiles firms’ sales in
the year ending September 30. Only 9 % of apparel
store sales and 3 % of ice and fuel dealers’ sales were on
an instalment basis. Customarily instalment sales in
these two lines represent a very small percentage of total
sales.
In the retail field, instalment sales accounted for 40%
of total sales volum e; charge account sales, 23% . Instal
ment account receivables of registering dealers on Sep
tember 30 represented 19% of total instalment sales
made during the previous twelve months.
Outstanding were automobile dealers who had a high
er dollar volume of sales than all other reporting re
tailers combined. This not only reflects the high unit
value of their sales but also the large number of auto
mobile dealers among registrants— nearly two out of
five. (Autom obile dealers more typically extend credit
subject to Regulation W than do many other retail
businesses.)
«{ 3
y
FEDERAL RESERVE BANK OF RICHMOND
Heating and plumbing dealers made the most of
charge account sales, charging 62% of their total sales.
Other dealers using charge accounts extensively in
cluded fuel and ice, apparel, department and general,
and farm implement.
Registrants carried their charge accounts 69 days on
the average, though it should be noted that this was on
September 30 when charge accounts outstanding were
below their seasonal peak. Longest credit terms were
extended by furniture stores, which carried their charge
account sales an average of 116 days. Outstandings of
jewelry, hardware and household appliance stores were
carried longer than those of the typical registrant. De
partment and general store credit averaged 67 days.
The shortest credit terms (46 days) were those of fuel
and ice dealers.
Instalment Paper Sold
Reporting dealers sold 41% of instalment paper ac
quired during the year. Largest sellers of this paper
were automobile dealers, who accounted for more than
four-fifths of the total. By far the greater share of
instalment paper arising out of the sale of automobiles
was sold, mostly to sales finance companies and other
wholesale lenders. Automobile dealers themselves held
instalment receivables representing less than 4 % of their
total instalment sales.
Household appliance and radio stores sold more than
half of their instalment paper, but were a distant second
to automobile dealers in the over-all dollar volume of
instalment paper sold. Although two-thirds of furniture
sales were instalment, furniture dealers held title to the
greater share of their own instalment paper, and their
receivables represented 55% of total instalment sales for
the year. The negligible amount of instalment paper
sold by other registrants indicated they found it rela
tively profitable to do their own instalment financing,
and were able to do so.
Lenders
Sales finance companies held title to nearly one-half
of the $1.1 billion of instalment receivables held by
registering Fifth District lending agencies. One very
large company which does a nationwide business was
responsible for a large portion of receivables owned by
this type of lender, and helped to push sales finance
companies to first place among instalment lenders in
the District. Commercial banks, with over one-third
of the total instalment credit outstanding, ranked sec
on d; miscellaneous financial institutions were in third
place.
Commercial banks made more than half of the direct
instalment loans reported. Remaining direct loans were
fairly evenly distributed among the other types of finan
cial agencies, such as state-licensed small loan companies
(1 1 % of the total), industrial loan companies and in
dustrial banks ( 8 % ) and credit unions ( 6 % ) .
Credit unions and small loan companies purchased
practically no instalment paper. Nearly 100% of credit
union instalment lending and 95% of small loan com
pany lending was in direct loans. On the other hand,
only 4 % of instalment loans made by sales finance compaines were direct instalment. Instalment loans made
by commercial banks were divided 62% direct, and
38% purchased paper.
C O N S U M E R IN S T A L M E N T L O A N S , F IF T H D IS T R IC T
BY L E N D IN G A G E N C Y
S E P T E M B E R 30, 1950
(Dollar Amounts in Millions)
No. of
Total
Kind of Lending
Regis
Instalment
Institution
trants
Paper
Sales Finance Companies
205
$ 540.5
Commercial Banks and
Trust Companies______
740
381.6
Industrial Loan Companies
and Industrial Banks__
129
44.1
State-licensed Small
Loan Companies______
350
47.0
Credit Unions____________
489
26.7
Other Financial
Businesses ____________
598
67.6
All Lenders................. .
2,511
$1,107.4
Direct
Loans
$ 20.0
Paper
Pur
chased
$520.5
236.8
144.8
32.8
11.3
44.6
26.7
2.4
*
63.2
4.4
$424.1
$683.4
♦Less than $100,000.
Sales finance companies held more than three-fourths
of purchased instalment paper outstanding. Commercial
banks held practically all of the rest.
Use of Lenders’ Instalments Loans
Almost three-fourts of all instalment loan credit was
used to finance retail purchases. Automobile financing
alone accounted for over one-half of all instalment credit
extended. Personal instalment cash loans made up onefifth of the total with the rest going into home repair and
modernization.
Lenders extended direct instalment credit mainly for
two purposes— personal instalment cash loans and retail
instalment sales financing. Personal loans accounted for
more than half of the total and retail sale financing, twofifths of the total.
Ninety- four per cent of the paper purchased by lend
ers originated as instalment sales credit, and nearly all
of the rest originated as F H A insured repair and mod
ernization loans.
C O N S U M E R IN S T A L M E N T L O A N S
F IF T H D IS T R IC T L E N D IN G A G E N C IE S
S E P T E M B E R 30, 1950
BY TYP E OF LO AN
(Dollar Amounts in Millions)
Total Direct
Direct
Purchased
Loans and
Type of Loan
Loans
Paper
Purchased
Paper
Retail Automobile Instalment
Credit _____________________
$143.0
$513.1
$ 656.1
Other Retail Instalment
Credit _____________________
24.3
127.9
152.2
FH A Insured Repair and
Modernization Credit______
24.2
37.5
61.7
Other Repair and Moderniza
tion Credit_________________
11.7
3.8
15.5
Personal Instalment Cash
Loans ______________________
220.9
1.1
222.0
Total
__________________
$424.1
$683.4
$1,107.5
MONTHLY REVIEW
APRIL 1951
1950-Record Year for State and Municipal Bond Offerings
and municipalities as well as individuals and
businesses achieved new borrowing records in 1950.
These governmental units tapped the money market for
a record amount of funds with sales of long-term bond
issues totaling $3.6 billion— an increase of 28% over the
preceding year. Even this rate of expansion was exceed
ed in the Fifth District— here bond offerings amounting
to $366 million were half again as much as the amount
borrowed by the District states and localities in 1949.
Incidentally, these borrowings amounted to more than
$25 for every person in the District.
told, Fifth District localities sold some 218 issues for
$161 million— a substantially smaller number of issues
but for a substantially larger total amount of funds than
in 1949.
ta te s
S
Continued High Volume Expected
Barring controls and restrictions definitely curtailing
state and local public works programs, indications point
to another year of heavy bond financing— although the
total will probably not measure up to the 1950 record.
Four District states have already been to the market
since January 1: Maryland with a $17.6 million general
improvement issue, South Carolina with $15.3 million of
electric revenue bonds, W est Virginia with $7.5 million
of road bonds, and North Carolina with a $5.2 million
sale of public improvement obligations. The latter state
is preparing for sale in April $75 million of road bonds
as the final installment of the $200 million issue author
ized by voters in June 1949. A nd W est Virginia will
be back in the market this spring with a $60 million
offering as the first installment of its $90 million bonus
bond issue— the first W orld W ar II bonus payment ap
proved in the District. A bill was offered on March 15
to the North Carolina legislature for a state bonus to
veterans of both W orld W ars, but to date no action has
been taken to hold public hearings on the proposal.
Over half this total was accounted for by state issues.
North Carolina led the parade by selling three issues for
$107.5 million, including $75 million for road construc
tion. In fact, almost two-thirds of all funds borrowed by
states in the District last year was for this purpose.
North Carolina and Maryland were the only states to
borrow for school building and improvements— the
former with a $25 million issue and the latter with three
issues totaling $29.4 million. Maryland, the second
largest state borrower in the District, sold two other
issues: one for $25 million for highways and one of $5.4
million for various public improvements. W est Virginia
sold four highway bond issues amounting to $18.5 mil
lion and one public improvement issue for $1.7 million.
South Carolina sold five issues during the year for a
total of $17.2 million, $14 million of which was for
highway building and improvement. Virginia was the
only state in the District that did not sell long-term
bonds— continuing a practice with respect to general
obligation bonds that extends back over a decade.
A n offset to the anticipated decline in state and local
financing due to restrictions and shortages of labor and
materials, may arise from the long-awaited Public H ous
ing Administration bonds. Although these obligations of
local housing authorities will not be the concern of state
and local governments, they will be exempt, by Congres
sional Act, from Federal income taxes and will probably
sell at yields comparable with those on top-quality state
and municipal bonds. A ccording to recent reports, how
ever, the snags run into by the housing bill (H R 2988)
preclude realization this year of the volume of public
housing bonds that had been anticipated.
A feature of the 1950 bond offerings of local govern
ments in this District was the unusual number of large
issues. The Elizabeth River Tunnel District, for e x
ample, marketed a $23 million issue, Baltimore sold
$19.5 million of water bonds, Richmond had a $5.9
million public improvement issue, and Charlotte in
creased the supply with $5.8 million of water bonds. All
STATE AND MUNICIPAL OFFERINGS— 1950
__________Virginia___________ West Virginia_______ North Carolina
Maryland
Per
Per
No. of Amt.
Per
No. of Amt.
Per
No. of Amt.
No. of Amt.
Cent
Cent Issues $000
Issues $000
Cent Issues $000
Cent Issues $000
School Building and jf
Improvements -------i t
Water, Sewer, and
Drainage Systems..
Street, Highway, and |
Bridge Building and ^
Improvement _____ 1
f
Public Improvement- <j
I
Public Utility Systems
(Excl. water sys
tems ) --------------------Hospitals ___________
Refunding
Miscellaneous
Total1 . ___ __ —
4
3*
4,185
29,367
4.2
29.1
7
7,392
12.7
9
1,485
5.3
9
29,600
29.4
15
22
2
1*
1
1
3*
16
13,621
23.5
2
23,0182
39.7
9,845
17.0
23
1*
14,776
25,000
South Carolina
Per
No. of Amt.
Issues $000
Cent
10.3
17.5
19
4,553
12.8
62
4*
32,391
54,367
8.8
14.9
67,792
18.5
16
27,333
9* 132,500
7.5
36.2
5,767
20.6
41
11,642
8.1
13
7,162
20.1
2
4*
30
18,500
0.1
65.9
10
1*
3,585
75,000
2.5
52.3
2
3*
700
14,000
2.0
39.4
1.0
5.2
4.2
6”"l
1,397
7,500
1,500
1,700
5
1*
3
"l*
15
3*
18,936
14,573
5.2
4.0
182
1,815
728
1,717
0.1
1.3
0.5
1.2
3,
7
2
5
2*
1,250
1,495
150
1,590
3,150
3.5
4.2
0.4
4.5
8.9
10
16
20
25
2*
2,256
3,310
3,678
5,485
3,150
0.6
0.9
1.0
1.5
0.9
143,342
100.0
35,550
100.0
365,771
100.0
25,000
24"8
6,194
5,373
6.2
5.3
5
150
0.1
2
600
1.0
2
74
0.3
225
720
0.2
0.7
2
4
2,575
965
4.4
1.7
4
493
1.7
2
9
15
9
100,814
100.0
32
58,016
100.0
44
28,049
100.0
84
57
* State issues.
1 Total will not equal the sum of the individual items as some issues are divided among more than one category.
2 Includes $23,000,000 issue for construction of toll bridge and tunnel by Elizabeth River Tunnel District.
Source: Weekly listings in “ The Commercial and Financial Chronicle.”
Fifth District
No. of Amt.
Per
Issues $000
Cent
100
233
FEDERAL RESERVE BANK OF RICHMOND
The adequacy of demand for tax-exempt obligations
appears basically satisfactory despite uncertainties and
a relatively unsettled bond market. A further increase
in tax rates, renewed interest of insurance companies the
last half of the year consequent upon curtailed mortgage
investments and working off of current commitments, a
continued increase in municipal holdings by commercial
banks, and the growth of pension funds— all combine to
promise an active market for the unique tax-exempt
securities offered by states and local governments.
Reaction in the Municipal Market
So far this year the municipal market has been char
acterized by divergent price movements and sharp
changes in buying activity by investors. Contrary to its
usual dullness at the turn of the year, trading in the
municipal market in early 1951 was active. Serious con
sideration of another boost in tax rates helped to reduce
dealers’ inventories of unsold securities from the record
amount of $260 million on hand November 15, 1950 to
$101 million at mid-Janu
ary. A s a consequence,
prices of tax-exempts con
tinued to follow the sharp
upward trend established in
December and by the end of
January had risen to the
highest level since the sum
mer of 1946.
This was a spectacular
prelude to the sharp change
in bond market fundamen
tals set off by the Treasury
announcement on March 3
of its plan to issue new nonmarketable 2 y^°/0 long-term
bonds. T h e s e Treasury
bonds are available only to
holders of existing 2*4% bank-ineligibles maturing June
and December 1972 on a par-for-par conversion. A l
though the new bonds are not directly redeemable in
cash, holders can exchange them at the Treasury for
new 1 y 2 °fo five-year notes which in turn can be sold in
the market for cash. The $19.6 billion of restricted
bonds eligible for exchange are held mostly by life
insurance companies, savings banks, pension funds, and
other long-term investors. Thus, the market for munici
pals will depend to an important extent on the nature of
investor attitudes which will gradually emerge from the
currently fluid conditions in the Government and corpo
rate markets.
Altered levels and yields in the Government bond
market, with prices of Treasury bonds below par for the
first time since the Nazis invaded Poland in 1939, were
naturally reflected in the municipal market. In fact, the
magnitude of price deterioration during the first two
weeks of March was greater there than in the other
bond markets. A s shown in the accompanying chart,
the average yield on long-term municipals rose 22 basis
points during the fortnight— a price decline of over $4
per $100 bond.
Obviously, the whole decline cannot be ascribed to
developments in the Government bond market inasmuch
as the municipal market had already begun to react to
the sharp rise in municipal prices that had taken place
in the period since July 1950. By the beginning of
February considerable resistance had developed to the
peak prices of the past 4
years in the municipal mar
ket and dealer inventories began to climb back up from
the mid-January low of $101 million. H owever, since
long-run prospects still appeared basically bullish, deal
ers made no marked price concessions, and prices held
at the peak from mid-January to mid-February before
they began to slide off. The decline was accentuated by
the developments already noted in the Government
market, and by March 14 (latest data available) long
term municipals showed a
rise in average yield equal to
over one-half of the drop in
the period from July 1950,
w h e n President Truman
proposed sharply higher tax
rates, to February 14, 1951.
Although indications are
that considerable delay will
ensue before passage of a
new tax bill, the municipal
market is likely before long
to begin discounting t h e
prospective b o o s t in the
corporate tax rate. Mean
while, the market has been
confronted with the new
offering of t h e Treasury
2^4's, the decline that occurred in the price of bankeligible Government 2 ^ ’s, some uncertainty regard
ing short-term Government yields, fairly heavy dealer
inventories, and, over the longer run, such factors as the
prospective liberalizing of restrictions on life insurance
investments.
Finally, the market is faced with a renewal of the
perennial argument that interest from state and local
bonds should be subjected to Federal taxation. Vehem
ent protests against the proposal were expressed at the
hearings that got under way on February 26 before the
House W ay and Means Committee, and the general re
action appears to be that this attempt to remove this
“ tax refuge” will not be any more successful than were
the efforts of 1938, 1940, and 1942. Should Congress take
affirmative action, however, the matter would certainly
be tested in the courts inasmuch as this tax immunity
is based not only on a statutory exemption set forth in
the internal revenue code but on our fundamental politi
cal traditions.
6 F
APRIL 1951
MONTHLY REVIEW
Residential Mortgage Lenders
The Savings and Loan Associations
Recent developments, such as the vast expansion in residential construction and the heavy extension of
mortgage credit involved an unprecedented growth of consumer credit and the greatly enlarged defense pro
gram, with its requirements for labor and materials have served to focus attention on the activities not only
of commercial banks but other lending institutions as well. Important among nonbank lenders are savings and
loan associations life insurance companies sales finance companies and mortgage companies. The article below
constitutes the first of a series describing characteristics and operations of these lenders.
,
,
,
,
,
,
,
which equal monthly payments are used to meet interest
due on the unpaid balance and to reduce the amount of
loan outstanding.
Federally chartered associations may make mortgage
loans only on first liens on homes (o r combination home
and business properties) not in excess of $20,000 on any
one property. Mortgage loans are further restricted to
property located within fifty miles of the home office.
A s much as 15% of the assets of the association may be
loaned without regard to either the $20,000 limitation
The share of nonfarm residential mortgage lending
on size or the fifty-mile limit on distance. Loans may
done by savings and loan associations in the Southeast
also be made to shareholders when secured by shares of
does not differ markedly from the national average. This
the association. There is no limit on the amount which
is shown by data for the Greensboro Federal Home
can be invested in U. S. Government securities or in
Loan Bank district, which covers all of the Fifth Fed
the stock of Federal home loan banks. Lending and in
eral Reserve District states
vesting activities of statewith the exception of W est
chartered associations a r e
Virginia, and in addition in
subject to the supervision of
ESTIMATED MORTGAGE LOANS
cludes Georgia, Alabama,
the state authorities, and
MADE BY SAVINGS AND LOAN ASSOCIATIONS
and Florida. In this dis
vary considerably.
(MILLIONS OF DOLLARS)
United States
trict, residential mortgage
Savings and loan associa
activity of these associations
tions operate under either
is almost three times that of
state or Federal charters.
commercial banks. This is
Conversion from state to
due to the fact that banks
Federal charter or f r o m
initiate a smaller proportion
Federal to state charter may
of residential mortgages in
be effected at any time on a
the Southeast than in the
majority vote of members.
United States as a whole.
Federal savings and loan
Savings and loan associa
associations must belong to
tions held 7.4% of all long
the Federal H om e Loan
term savings of individuals
Bank System, which con
SOURCES: STATISTICAL SUMMARY, 1949,
HOME LOAN BANK BOARD, WASHINGTON, D C
OPERATING ANALYSIS DIVISION, HOME LOAN BANK BOARD
in this country in 1949. Last
sists of e l e v e n regional
year the net flow of savings
banks under the H om e Loan
into insured associations was
Bank Board. Membership in
5.5% greater than in 1949, whereas in the Greensboro
the System is optional for state chartered associations.
district the comparable figure was 18.1%.
The F H L B may make either short or long-term loans
In the postwar period savings and loan associations
to Federal associations to a maximum of 50% of the
(also termed building and loan associations, mutual loan
share capital of the institution. Loans to state chartered
associations, building societies, etc.) have scored the
members are limited by state laws, but in general may
largest relative gains in personal savings of any type of
equal from 25% to 50% of share capital. Credit may
savings institution, with a percentage rate of increase
also be extended to nonmember associations. F H L B
double that of life insurance companies, the next largest
advances to members outstanding almost doubled with
the residential housing boom of 1950, rising from $427
gainers.
These associations are usually described as coopera
million to $810 million. F H L B funds come from capital
tive institutions owned exclusively by their members and
stock (m ore than half owned by members and the rest
their capital consists entirely of members’ accounts. In
by the U. S. Government), deposits of members, and
part because of their nature and in part because of legal
sale of consolidated F H L B oobligations (which are not
restrictions they usually confine their lending activities
guaranteed by the Government).
within a small geographic area. Loans consist largely
Federally chartered institutions are required to join
of long-term direct reduction residential mortgages, in
the Federal Savings and Loan Insurance Corporation,
and loan associations as a class have become
the most important residential mortgage lenders in
the United States. Their share of residential mortgage
holdings has grown in the past fifteen years from less
than one-fifth to almost one-third of the total residential
mortgage debt. In 1950 these associations recorded over
$5 billion of nonfarm mortgages of $20,000 and under—
half again as much as commercial banks, and three times
as much as insurance companies.
a v in g s
S
<{ 7
Y
FEDERAL RESERVE BANK OF RICHMOND
an institution similar in organization to the FD IC .
State chartered associations may join the F S L IC at
their option. In contrast to F D IC coverage, which in
cludes all Federal Reserve System member banks,
F H L B state chartered members are not required to join
the F S L IC , although they customarily do so.
the amount of any prepayments made more than twelve
months in advance. Bonuses are payable semiannually,
if the withdrawal value of the account equals or exceeds
a prescribed minimum.
Dividends on all accounts are declared on a pro rata
basis semiannually, at a rate determined by the directors
on the basis of net profits. Because of the wide base of
ownership, the dividend rate of savings and loan associa
tions does not average as high as that paid on, e.g., com
mercial bank stocks. However, the rate of dividends
usually exceeds the rate of interest paid by other sav
ings institutions. The fact that all shares are evidences
of ownership, and are therefore subject to the risks of
ownership, accounts in part for the higher rate. In addi
tion, only a small part of the available funds of savings
and loan associations are invested in low-yield liquid
assets, with the vast bulk of funds invested in high-yield
long-term residential mortgages. A s cooperative institu
tions, savings and loan associations are exempt from the
corporate income tax, though at the present time the
House W ays and Means Committee is considering with
drawal of this exemption for these and similar institu
tions. It is of interest to note that a recent ruling of
the Bureau of Internal Revenue states that, as earnings
distributed are dividends, rather than interest, associa
tions are required to submit returns giving information
as to the amount of dividends paid to each stockholder.
The borrower must be or must become a member of
the association, though he is not necessarily required to
be an investing member or share purchaser. In some
cases he may become a member by the mere fact of
receiving a loan.
Lending terms differ between associations. Except
as further restricted by the terms of Regulation X , Fed
erally chartered associations can make conventional
loans on home properties to a maximum of 80% of
value. In recent years more liberal terms have been
permitted on GI and F H A loans. Requirements of state
institutions vary, but usually run from 65% to 80% of
value on home properties. Maturities on savings and
loan association mortgages usually run from twelve to
fifteen years, with the average maturity running thirteen
to fourteen years.
Examinations of savings and loan associations under
Federal supervision are conducted by the H om e Loan
Bank Board, which has supervisory authority over all
Federal associations, state chartered insured associa
tions, and uninsured state chartered F H L B members.
Last year Congress gave the F H L B System power to
require members to maintain reserves of cash and G ov
ernment securities equal to from 4 % to 8 % of with
drawable accounts at the discretion of the Board. Cur
rently all members are required to keep a reserve of 6 % .
The F S L IC insures individual and joint accounts to a
maximum of $10,000, and each of the holders of a joint
account can hold a separate insured account. Thus a
husband and wife can hold joint and separate accounts
insured to a maximum of $30,000. Insured institutions
make annual payments to an insurance reserve equal to
at least 0.3% of insured accounts. Payment of premiums
continues until the accumulated insurance reserve equals
5% of insured accounts of the association. This level
must be reached within twenty years.
The corporation acts in two ways to protect accounts
against loss. A n attempt may be made to prevent the
default of an insured institution through cash contribu
tions, loans, or purchase of assets with cash. If liquida
tion does occur, the owner of an account may choose
payment in cash or may choose an insured account in
another operating institution.
Most accounts fall in either of two classes— certificate
accounts or book accounts. The former are usually
evidenced by formal certificates in round denominations
($100, $200, etc.), the latter by pass books. A ll shares
are evidences of ownership, and have equal rights to divi
dends. Most shares may be “ repurchased” (sold back to
the association) after thirty days’ notice, although for
mality of notice is usually waived.
Several types of shares are issued, most of them
falling in the two-fold classification noted above; most
associations issue at least two types. The most com
monly used types of shares include “ instalment,” “ op
tional,” “ prepaid,” and “ full-paid” shares. “ Instalment”
shares are bought through periodic payments, and can
usually be exchanged for “ full-paid” shares on maturity.
“ Optional” shares may be purchased in any amount at
any time. “ Prepaid” shares involve payment of a lump
sum equal to the discounted par value of the matured
share. “ Full-paid” shares are bought by lump sum pay
ments of full-par value, with dividends payable in cash.
E S T IM A T E D N O N F A R M M O R T G A G E R E C O R D IN G S
$20,000 A N D U N D E R
1950
Greensboro, N . C.
United States
FHLB District1
Amount
Per Cent
Amount
Per Cent
(In millions
of
(In millions
of
of dollars)
Total
of dollars)
Total
Savings and Loan
5,060
31.3
574
30.2
Associations ______
Insurance Companies
1,618
10.0
299
15.7
Banks and Trust
Companies -----------3,365
20.8
222
11.7
Mutual Savings
Banks ____________
1,064
6.6
8
0.4
Individuals __________
2,299
14.2
372
19.5
Other Mortgagers___
2,774
17.1
429
22.5
In order to encourage systematic purchase of shares,
the associations sometimes give a bonus on instalment
accounts. These bonuses, which range from J4% to 1% ,
are forfeited if any monthly payment is as much as sixty
days late, or if application has been made for withdrawal
of any part of the account. Bonuses are also forfeited on
-f 8 )-
Total___________
16,180
100.0
1,904
1 Includes Md., D. C., Va., N . C., S. C., Ga., Ala., and Fla.
100.0
Source: Operating Analysis
Washington, D. C.
Board,
Division,
Home
Loan
Bank
APRIL 1951
MONTHLY REVIEW
New Developments in Treasury Issues
Because of the widespread interest in the 2% % Treasury Bonds and in the options available to owners of
maturing Series E savings bonds, the official releases describing these two recent innovations are quoted below.
Official circulars giving complete details may be obtained from this bank or from any other Federal Reserve Bank.
terms of his contract. He may receive his cash by present
ing his matured bond to any qualified bank or other paying
agent, any Federal Reserve bank or branch, or to the United
States Treasury. I want to make it absolutely clear that the
offerings under Options 2 and 3 with respect to maturing
bonds do not in any way restrict this right of the investor to
cash his bond at any time.
March 19, 1951
Secretary of the Treasury Snyder today released the
official circular governing the offering of 2^4 per cent Treas
ury Bonds, Investment Series B-1975-80. Holders of 2^ per
cent Treasury Bonds of June 15 and December 15, 1967-72
may, at their option, exchange their bonds of either or both
series for the new 2^ per cent Treasury bonds, in author
ized denominations. The amount of the offering will be
limited to the amount of Treasury Bonds of 1967-72 of
either or both of the specified series tendered and accepted.
“Option 2. Extension of E bonds— Under this option,
the owner will be given the privilege of retaining his bond
for a period not to exceed 10 additional years during which
time interest will accrue at the rate of 2^ per cent simple
interest each year for the first 7^2 years, and then increase
for the remaining 2 ^ years to bring the aggregate interest
return to approximately 2.9 per cent, compounded semi
annually. This choice requires no action on the part of the
owner. Any bond which is not turned in for cash at its
original maturity date will be extended until such time as
the owner does present it for payment. However, again I
wish to emphasize that the extended bonds will also be re
deemable at the owner’s option, and when presented for pay
ment the holder will receive the full face value of the bond
plus interest which has accrued at the new rates. Congress
has continued the existing option of paying Federal income
taxes on interest on Series E bonds currently or in the year
in which the extended bonds finally mature or are redeemed.
As announced by the Secretary on March 4, 1951, the
subscription books will open on Monday, March 26, for a
period of about two weeks, although the Secretary reserves
the right to close the books at any time without notice.
The Secretary also today released the offering circular
governing the 1y2 per cent five-year marketable Treasury
notes, which will be available for exchange to owners of the
new 2^4 per cent Treasury bonds, at their option, during the
life of the bonds. The first issue of the new notes will be
dated April 1, 1951, and will be available as soon as the 2^4
per cent bonds are issued.
Pursuant to the provisions of the Public Debt A ct of
1941, as amended, interest upon the bonds and notes now
offered shall not have any exemption, as such, under the
Internal Revenue Code, or laws amendatory or supplement
ary thereto. The full provisions relating to taxability are set
forth in the official circulars released today.
Subscriptions for the bonds will be received at the Fed
eral Reserve Banks and Branches, and at the Treasury De
partment, Washington, and should be accompanied by a like
face amount of the 2^4 per cent bonds to be exchanged.
Subject to the usual reservations, all subscriptions will be
allotted in full.
*
*
*
March 26, 1951
Secretary Snyder today issued the following statement:
“ I am sure that the signing today by President Truman
of H.R. 2268 will be welcomed by the many holders of Series
E savings bonds who have expressed a desire for a con
venient reinvestment plan. I was deeply gratified by the dis
patch with which Congress passed this necessary legislation
to effectuate such a plan.
“ An official circular giving the details of the reinvestment
privileges available to owners of maturing Series E savings
bonds will be issued immediately. In the meantime, I desire
to briefly outline the various options which the Treasury will
offer holders of these bonds:
“ Option 1. .Cash—The owner of any Series E bond may
receive, if he wishes, full cash payment for his bond at ma
turity. This is, of course, in accordance with the original
“ Option 3. Exchange for a Series G Bond— This third
option was specifically designed for those who are desirous
of receiving current interest income. Series G bonds are
registered bonds issued at face amount and bear interest at
the rate of 2 y2 per cent per annum, payable semiannually
from issue date until their maturity in 12 years. A holder
of maturing E bonds may exchange such holdings for the
current income G bonds within a period of time prescribed
by Treasury regulations. He may redeem the G bonds at
his option at any time after six months from the issue date
upon one calendar month’s notice. Also, G bonds issued in
exchange for maturing E bonds will be redeemable at full
face value whenever they are presented for payment. H ow
ever, the privilege of deferring taxes on the interest on a
Series E bond does not apply if the E bond is exchanged
for a G bond.
“ The privileges which I have just outlined will apply to
all outstanding E bonds as they mature, and will apply to all
new series E savings bonds issued in the future.
“ The Treasury’s program for voluntary reinvestment
was decided upon after long deliberation, extensive consulta
tion, and cooperative effort. Many groups and individuals
met with officials of the Treasury and gave considerable
time and thought to the measures which would be in the
best interests of both the Government and the bondholders.
I wish to express my sincere appreciation to them and to
the Congress for helping to effectuate this program.”
^ 9 y
FEDERAL RESERVE BANK OF RICHMOND
Business Conditions and Prospects
Fifth District business situation in recent weeks
can best be characterized as one of considerable
backing and filling. This was true in February (latest
month for which complete data are available) and for
most types of economic activity, though a notable excep
tion has been the volume of construction.
T
he
Trade levels generally receded from January peaks
during February and inventories at retail and wholesale
levels continued to rise. The easing in trade levels was
to be expected in view of the record highs established
in January and buyers’ relaxed attitudes due perhaps
to relatively favorable developments on the war and
diplomatic fronts. Production trends were mixed with
the cotton textile, lumber, shipbuilding, aircraft, and
most mechanical industries rising. F ood industries held
their own, and bituminous coal, rayon, and tobacco in
dustries receded.
Store sales in February were 14% ahead
ago and Easter volume was satisfactory, but
pectations. Bank debits, a strong indication of
war-induced boom, continued very high in
and were 26% ahead of February 1950.
of a year
below ex
the merry
February
demand for such goods as can be made with a dwindling
cotton supply between May and the new crop.
Bituminous coal production in this District dropped
15% from January to February after seasonal correc
tion. Due to last year’s strike February 1951 output
was 450% above a year ago. The January to February
decline was caused mainly by the switchmen’s strike but
was also importantly related to mild February weather
and the new wage contract given the miners. This wage
adjustment had the effect of toning down the demand
for stock-piling purposes. Absenteeism at the mines
is sizeable in some areas but even so there is still un
used capacity available because of lack of demand.
Shipments of rayon in February declined 5% from
January, due chiefly to fewer working days in the latter
month. There are, however, some indications of re
duced operations, occasioned by hold ups in raw ma
terials deliveries resulting from the railroad strike.
There is little doubt, however, that rayon output for
the rest of the year will be as near capacity levels as
materials will permit— in fact a new move to expand
capacity is under way.
Weather has been favorable in the logging and lum
bering industry and production has continued to rise.
In fact production and new orders have been running
about in line with each other for several weeks. The
lumber price situation appears to be fairly stable and
with the general price freeze, yards are less interested
in building inventories.
Construction Still Booms
Strong revival in residential and factory construction
was probably responsible for the total contract vol
ume in the Fifth District rising 20% from January to
February after seasonal correction to the second highest
level on record. Volume of contract awards for one- and
two-family houses in February was at a new high sea
sonally adjusted level and multiple housing structures
more than doubled in the same period.
Even though a reduction in residential building is in
the offing, the lumber industry expects to continue op
erating on a full-time basis. A change in the character
of the demand, however, will probably necessitate some
change in the types and sizes.
Important new industrial expansion was announced
late in February or early in March and included: $6
million cement plant in Roanoke, V irginia ; $56 million
in new iron and steel facilities at Sparrows Point, Mary
land; $1.2 million addition to a synthetic mill at W illiamston, South Carolina; $700,000 cotton yarn mill at
Camp Croft, South Carolina; $2 million refractory ex
pansion at Baltimore, Maryland; and a $18 million
rayon yarn plant at Parkersburg, W est Virginia.
Trade Easier
Despite uncertainties created by the new ceiling price,
the cotton textile industry in the Fifth District ex
panded cotton consumption by 4 % after seasonal ad
justment from January to February to a level 18%
ahead of a year ago. There has been a relaxation in
the attempts at forward coverage of cotton goods and
yarns, occasioned in part by heavy inventory positions
in all locations beyond the mill level.
Department store sales (adjusted) in February de
clined 7% from January but were 14% ahead of last
year. Department store inventories continued to rise,
gaining 10% (after adjustment) from January to Feb
ruary and stood 26% ahead of a year ago. Although
major household appliance sales in February continued
substantially ahead of a year ago, soft goods depart
ments accounted for a larger part of the year-to-year
gain than in recent months. Soft goods sales in the
District, particularly women’s apparel and accessories,
ran well ahead of the national total during February—
probably due to both mild February weather and to the
early Easter.
Indications of inventory resales have been noted, prob
ably indicating the general questioning regarding fur
ther bank credit extension.
Easter trade, based on the weekly reporting stores
appears to have fallen somewhat below expectations,
due in part to bad weather in the week of March 17.
Existing textile orders are sufficient to keep the in
dustry operating at peak levels over the next two months
and it is not believed that there will be any lack of
Sales of furniture stores have again moved into high
ground, but inventories have risen much more sharply.
February sales rose 3 % over January with a level 9 %
aoy
APRIL 1951
MONTHLY REVIEW
above a year ago, while inventories rose 13% to a level
58% ahead of a year ago. This inventory position can
hardly fail to have some adverse short-run repercussions
upon furniture manufacturers.
A ll lines of wholesale trade declined after seasonal
correction from January to February with the exception
of dry goods, which rose 13% . This was a natural reac
tion to the somewhat easier retail trade levels experi
enced in February. Relative to a year ago all wholesale
trade lines except tobacco show substantial increases
ranging from 20% to 246% . Tobacco and its products
shows a gain of 11% which is easily explained by ade
quate supplies and hence no reason for stocking.
Employment Levels Off
Employment in the Fifth District in February con
tinued at a level about the same as in January with de
clines in seasonal industries offset by gains in nonseasonal industries. Established nonseasonal industries in
the District have acquired their complement of workers
and except to replace losses to the armed services and
job shifts of one type or another, they will not have a
very large manpower requirement up to midsummer.
Construction industries, retarded by climatic condi
D E B IT S TO IN D IV D U A L AC C O U N TS
(000 omitted)
February
1951
February
1950
2 Months
1951
2 Months
1950
676,990
$ 2,055,117
$ 1,482,895
1,079,345
21,980
18,115
28,269
884,415
18,834
15,713
22,984
2,360,931
50,323
37,288
61,379
1,896,161
41,410
31,664
49,912
North Carolina
Asheville
Charlotte
Durham
Greensboro
Kinston
Raleigh
Wilmington
Wilson
Winston-Salem
52,604
313,818
94,202
92,099
14,764
136,815
37,316
15,983
144,966
43,092
234,606
63,486
70,907
12,370
113,082
30,009
14,292
115,321
116,408
678,803
202,644
198,800
33,009
286,349
80,153
39,591
315,048
92,924
505,737
149,916
147,114
26,054
246,206
60,822
29,454
256,302
South Carolina
Charleston
Columbia
Greenville
Spartanburg
68,798
114,130
104,517
60,656
60,038
93,201
78,263
46,050
149,202
235,486
226,383
136,849
118,257
193,248
163,167
95,226
Dist. of Columbia
Washington
Maryland
Baltimore
Cumberland
Frederick
Hagerstown
$
923,839
$
Virginia
Charlottesville
Danville
Lynchburg
Newport News
Norfolk
Portsmouth
Richmond
Roanoke
24,621
30,623
44,511
38,210
193,202
22,814
489,678
99,196
22,047
21,899
33,59fr
24,014
187,956
18,625
424,286
80,355
52,044
61,724
89,907
76,418
404,402
48,484
1,062,570
212,743
45,087
48,431
72,608
50,993
385,814
39,240
908,501
171,178
West Virginia
Bluefield
Charleston
Clarksburg
Huntington
Parkersburg
45,486
134,552
31,803
58,151
25,910
30,991
104,302
23,317
49,802
21,520
96,641
301,786
70,437
130,310
56,842
71,848
236,219
54,679
106,689
46,178
District Totals
$ 4,560,973
$ 3,636,363
$ 9,928,071
$ 7,823,937
tions during the winter, will show seasonal expansion
despite the impending cutback in residential construc
tion. The real expansion in labor demand in this Dis
trict is coming from the war industries and Govern
ment— shipyards are stepping up their employment lev
els substantially and two aircraft factories in the Dis
trict are doing likewise, while stand-by war production
factories in the District are being reactivated. Biggest
probable demand will be from the Government— in its
regional control offices and at military installations.
The inflationary effects of bank loan expansion in the
weekly reporting banks of the Fifth Federal Reserve
District have been checked in the consumer and real
estate sectors, but commercial and industrial loan totals
are still rising and at a rapid pace. It is a moot question
as to whether these loans will rise further in view of the
faltering in some commodity prices, growing talk and
efforts at price and credit control and, hence, the lack of
attraction of accumulating further inventories.
The trend of new savings bond sales appears to have
flattened out after having declined persistently since the
end of W orld W ar II, and, though redemptions are
relatively heavy, the net redemption is running som e
what less than a few months ago.
51 R E P O R T IN G M E M B E R B A N K S — 5th D IS T R IC T
(000 omitted)
Change in Amount from
Mar. 14,
Feb. 14.
Mar. 15,
ITEMS
1951
1951
1950
Total Loans_______________ ____ $1,171,962^ + 24,476
+271,475
Business & Agricultural
582,880
+ 172,783
+ 25,317
— 2,932
Real Estate Loans__________
243,503
+ 24,548
All Other Loans____________
359,723
+ 77,055
+ 2,215
— 37,358
Total Security Holdings______
1,607,620
—217,795
U. S. Treasury Bills ________
106,640
7,105
— 10,286
+
U. S. Treasury Certificates 0
0
—209,660
—
U. S. Treasury Notes ___ __
379,472
12,570
+ 151,250
— 27,862
U. S. Treasury Bonds ______
947,937
— 171,754
_
Other Bonds, Stocks & Secur.
173,571
4,031
+ 22,655
Cash Items in Process of Col.__
292,649
+ 51,372
+ 19,763
Due From Banks_____________
191,535#
7,369
+ 16,583
Currency & Coin______________
71,601
1,163
+ 10,026
+
Reserve with F. R. Bank_____
514,606
2,560
+ 62,468
+
Other Assets__________________
56,879
2,645
+
5,716
+
Total Assets______________
$3,906,852
5,880
+ 199,845
+
Total Demand Deposits______
Deposits of Individuals _____
Deposits of U . S. Govt______
Deposits of State & Loc. Gov.
Deposits of Banks __________
Certified & Officers’ Checks.
Total Time Deposits___________
Deposits of Individuals ...
Other Time Deposits________
Liabilities for Borrowed Money
All Other Liabilities__________
Capital Accounts______________
Total Liabilities___________
$3,028,448
2,296,911
83,077
176,609
419,945^
51,906
605,555
550,336
55,219
1,450
27,593
243,806
$3,906,852
+
+
_
+
+
_
_
+
—
+
+
+
27,131
11,859'
171
20,599
10,602
5,446
1,918
2,092
174
21,500
1,860
307
+ 193,083
+216,812
— 30,643
— 1,846
+
5,467
+
3,293
— 9,857
— 18,659
+
8,802
— 3,550
+
7,479
+ 12,690
5,880
+199,845
♦Net figures, reciprocal balances being eliminated.
♦♦Less reserves for losses on bad loans.
iu y
FEDERAL RESERVE BANK OF RICHMOND
S E L E C T E D F IF T H D IS T R IC T B U SIN E S S IN D E X E S
A V E R A G E D A IL Y 1935-39=100— S E A S O N A L L Y A D JU S TE D
Feb.
1951
Automobile Registration1____________________________
_______ ............
Bank Debits_________________ ____________
Bituminous Coal Production_________________________ ______
Construction Contracts Awarded____________________ ______
Business Failures— No.----------------------------------------------Cigarette Production--------------------------------------------------- ______
Cotton Spindle Hours------ --------------- ---------------------------...........
Department Store Sales2---------------------------------------------- ______
.
Electric Power Production___________________________
Employment— Manufacturing Industries1___________
Furniture Manufacturers: Shipments2----------------------- ______
Life Insurance Sales--------------------------------- ------------------... ....
423
132
639
51
231
......
341
___
283
Jan.
1951
Dec.
1950
Feb.
1950
238
426
162
531
46
259
162
369
___
149
364
283
205
391
156
533
62
229
164
336
341
150
333
276
182
337
24
477
63
208
148
299
296
138
265
259
% Change— Latest Month
Prev. Mo.
Year Ago
+
—
—
+
+
—
—
—
—
—
+
16
1
19
20
11
11
1
8
1
1
9
0
+
31
+
26
+ 450
+
34
— 19
+
+
+
+
+
+
+
11
8
14
20
7
49
9
1 Not seasonally adjusted.
2 Revised Series— back figures available on request.
W H O LESALE TRADE
Sales in
February 1951
compared with
Jan.
Feb.
1951
1950
LIN ES
— 16
+ 43
Auto supplies ( 9 ) ________
— 8
+ 65
Electrical goods ( 7 ) -------—
22
+ 40
Hardware (1 4 )--------------—
4
Industrial supplies ( 6 ) ----+ 74
— 15
Drugs (1 1 )______________
+ 10
—
+ 52
2
Dry Goods (1 6 )_______ r—
— 17
Groceries (5 5 )___________
+ 19
— 19
Paper & products ( 5 ) ----+ 31
—
3
Tobacco & products (11)
+ 11
—
3
Miscellaneous (9 1 )-----------+ 21
—
10
+ 27
District Totals (225) —
B U IL D IN G P E R M IT F IG U R E S
February
February
2 Months
1951
1950
1951
Stocks on
February 28, 1951
compared with
Feb. 28, Jan. 31,
1950
1951
+
22
— 18
— 19
8
—
11
—
1
0
+ 2
+ 5
+ 1
+
+
+
+
+
+
— 24
+ 17
-7
--
Maryland
Baltimore
Cumberland
Frederick
Hagerstown
Salisbury
Virginia
Danville
Lynchburg
Newport News
Norfolk
Petersburg
Portsmouth
Richmond
Roanoke
W est Virginia
Charleston
Clarksburg
Huntington
North Carolina
Asheville
Charlotte
Durham
Greensboro
High Point
Raleigh
Rocky Mount
Salisbury
W inston-Salem
South Carolina
Charleston
Columbia
Greenville
Spartanburg
Dist. of Columbia
Washington
District Totals
6
25
45
27
1
2
Number of reporting firms in parentheses.
Source: Department of Commerce.
♦ ♦ *R E T A IL F U R N IT U R E SAL ES
Percentage comparison of sales
in period named with sales in
same period in 1950
Feb. 1951
2 Mos. 191
STATES
14
5
Maryland ( 7 ) ______
6
+ 24
District of Columbia ( 6 ) .
+
1
5
Virginia (1 7 )---------+
6
West Virginia (10) —
+ 11
+
3
3
North Carolina (14)
+
—
15
2
South Carolina (6) —
9
District (6 0 )____
— 1
+
IN D IV ID U AL CITIES
14
5
Baltimore, Md. ( 7 ) ------------6
+ 24
Washington, D. C. ( 6 ) -----+
g
a
Richmond, Va. ( 6 ) ________
3
6
Charleston, W . Va. ( 3 ) ------
—
—
_
_
_
—
_
Number of reporting firms in parentheses.
Sales, Feb. ’51 vs. Feb. *50-----Sales, 2 Mos. ’51 vs. 2 Mos. ’50
$ 5,473,815
45,650
77,000
15,550
75,937
$ 6,404,300
124,535
50,725
48,497
59,875
$16,480,270
142,410
338,225
99,775
278,462
$17,007,750
156,245
84,425
199,772
150,225
131,113
186,375
67,331
4,014,761
112,405
342,890
1,483,741
1,905,866
126,387
342,836
110,576
1,829,405
251,435
272,855
1,716,363
800,636
241,848
658,958
360,199
5,729,471
443,357
645,395
3,285,220
4,774,590
276,098
620,264
182,073
2,672,435
1,044,671
530,869
2,901,211
4,047,268
312,892
39,165
305,840
1,156,999
240,800
503,136
821,238
168,065
1,090,840
5,498,999
268,836
680,127
146,895
4,252,141
329,337
594,667
258,085
299,850
143,264
36,875
2,211,167
278,285
1,220,179
460,830
1,002,415
218,605
465,450
196,943
587,250
1,190,703
2,320,292
6,451,008
1,023,629
1,658,027
710,394
1,430,431
489,314
242,915
2,848,862
421,371
3,257,353
6,519,092
1,606,193
440,021
1,231,290
632,668
750,773
1,685,888
129,684
607,160
941,252
78,515
220,094
588,042
565,033
97,000
329,378
2,761,785
1,738,709
180,320
420,294
2,315,885
1,057,093
182,714
8,559,788
$33,179,011
3,248,755
$24,378,944
15,208,079
$72,951,466
9,037,908
$65,879,811
ADDITION TO PAR LIST
The Union Trust Company, Shelby, N. C., has
agreed to remit at par, effective March 14, 1951, for
all checks drawn on its head office at Shelby receiv
ed from the Federal Reserve Bank. This bank is
located in the territory of the Charlotte Branch of
the Federal Reserve Bank of Richmond. The com
bined A B A transit number-check routing symbol is
D E P A R T M E N T ST O R E O P E R A T IO N S
(Figures show percentage change)
Sales, Feb. *51 vs. Feb. *50-------Sales, 2 Mos. ’51 vs. 2 Mos. ’50Stocks, Feb. 28, ’51 vs. ’50---------Orders outstanding,
Feb. 28, ’51 vs. ’50____________
Current receivables Feb. 1
collected in Feb. ’51----------------Instalment receivables Feb. 1
collected in Feb. ’51___________
2 Months
1950
Rich.
+18
+28
+36
Balt.
+14
+20
+25
Wash.
[-12
H-21
- -15
Other
Cities
+14
+20
+ 18
Dist.
Total
+14
+21
+21
+46
+61
+55
+34
+53
27
45
42
37
38
13
13
17
15
Md. D.C. Va. W .V a . N.C.
+14 +12 +17 +29 + 7
+19 +21 +25 +34 +14
66-169.
531
The Forest City, Rutherfordton and Spindale
branches of the Union Trust Company were al
ready on the Federal Reserve par list.
15
S.C.
+ 9
+13
{12}
@FedFRASER