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MONTHLY

REVIEW

o f Financial and Business Conditions

F if th
FEDERAL

Reserve
D is tr ic t

Federal Reserve Bank, Richmond, Va.

August 31, 1941

Summary of July Business Conditions
S E A S O N A L recessions in trade and industry in July

for the fourth consecutive month shipped more yarn than
they could make and were compelled to draw further on
already small reserve stocks. Bituminous coal mined in
July exceeded July 1940 production by 21 per cent, and,
contrary to seasonal trend, also exceeded June output.
Shipyards, airplane plants, and all other industries en­
gaged on defense work continued at capacity levels last
month.
Construction provided for in building permits and con­
tracts awarded was in smaller volume than in June, but
continued far above normal volume. Some trouble is be­
ginning to develop in construction, however, on account of
priorities, and it appears likely that non-defense building
will have to be curtailed appreciably in the near future.
Agricultural prospects for most Fifth district crops im­
proved during July, and about half o f the crops promise
increased yields over those for 1940. However, the lead­
ing cash crops, tobacco and cotton, show materially reduced
yields this year, and Irish potatoes and peanuts also show
declines. Fruit prospects, on the other hand, are much
better than a year ago, with both apples and peaches ex­
ceeding both 1940 and 10-year average yields. Grains
turned out well, and larger crops o f wheat, oats and corn
are forecast for 1941 than for 1940. The price outlook
for farm products is quite favorable, both because o f a
stronger consumer demand and higher Government pay­
ments to farmers in the form o f loans on crops and soil
conservation payments.

in the Fifth Federal Reserve district were much less
noticeable than in most years, and in a few instances actual
increases in volume occurred. In comparison with busi­
ness a year ago, last month showed marked improvement
in nearly every line.
Distribution of goods to consumers usually is in sub­
stantially smaller amount in July than in June, but this
year decreases were relatively small. Department store
sales in 79 stores declined 15 per cent from June to July,
but in the latter month were 29 per cent higher than July
1940 sales. Furniture stores sold slightly more in July
than in the preceding month, and exceeded sales in July
1940 by 47 per cent. Wholesale trade as reflected in 201
firms rose 5 per cent last month over June trade, and was
43 per cent above July 1940 business. New passenger
automobiles continued in great demand, and sales in July
were 36 per cent ahead of July sales last year. Fear o f in­
ability to obtain articles later has helped to stimulate re­
tail buying in recent weeks, especially o f durable goods
such as automobiles, radios, stoves, refrigerators, and other
household appliances. The rush to buy silk hosiery early
in August was an exaggerated example o f what has been
quietly occurring in many other lines.
In industry, no outstanding development occurred in
July in the Fifth district. Textile mills continued capacity
operations, and consumed 46 per cent' more cotton than in
the corresponding month last year, and rayon yarn mills

BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT

July 1941

June 1941

July 1940

Debits to individual accounts (25 cities)—
Sales, 79 department stores, 5th district.....
Sales, 41 furniture stores, 5th district.........
Sales, 201 wholesale firms, 5th district.......
Registrations, new autos, 5th district.........

$1,779,790,000
$ 12,339,671
$
1,519,543
$ 15,796,000
33,740

$1,807,218,000
$ 14,464,943
1,498,545
$
$ 15,054,000
35,804

$1,408,226,000
9,534,538
$
1,034,843
$
$ 11,011,000
24,724

Number o f business failures, 5th district..
Liabilities in failures, 5th district...............
Value of building permits, 29 cities............
Value of contracts awarded, 5th district....
Cotton consumption, 5th district (Bales)....

$
$
$

Cotton price, cents per lb., end of month....
Print cloths, 39 in., 80x80s, end of month....
Rayon yarn shipments, U. S. (Pounds).....
Rayon yarn stocks, U. S. (Pounds).............
Bituminous coal mined, U. S. (T on s).........
* Ceiling price set by OPACS.




16
198,000
11,584,377
64,333,000
418,620
15.94
10.75*
39,400,000
3,600,000
43,300,000

$
$
$

27
152,000
13,533,100
92,503,000
391,979
14.82
11.25
38,300,000
4,600,000
42,774,000

$
$
$

% Change
Month
Year
— 2
— 15
+
1
+ 5
— 6

+
+
+
+
+

26
29
47
43
36

51
756,000
14,056,879
57,234,000
285,912

—
+
—
—
+

41
30
14
30
7

—
—
—
+
+

69
74
18
12
46

10.23
6.50
32,100,000
11,100,000
35,890,000

+ 8
— 4
+ 3
— 22
+
1

+
+
+
—
+

56
65
23
68
21

2

MONTHLY REVIEW
BA N K IN G STATISTICS

EM PLOYM ENT

o
©
©

RESERVE BAN K STATEMENT ITEMS
Fifth District
omitted
ITEMS
Aug. 15
July 15
1941
1941
Discounts held ........................................
Industrial advances .............................
Government securities .......................
Tofcal earning' assets .......................
Circulation of Fed. Res. notes...........
Members’ reserve deposits ...............

Aug. 15
1940
$

140
790
122,470
$123,400
231,824
304,162
493,514
80.35

$

0
818
119,663
$120,481
321,434
414,644
713,046
85.60

119,663
334,910
417,214
718,165
85.18

Reserve ratio ..........................................

SELECTED ITEMS— 41 REPORTING MEMBER BANKS
Fifth District
000 omitted
Aug. 13
ITEMS
July 9
Aug. 14
1941
1941
1940
Loans to business & agriculture ........
All other loans ..........................................
Investments in securities .....................
Reserve bal. with F. R. bank ..............
Demand deposits .....................................
Time deposits ..........................................
Money borrowed ..........................................

$149,700
168,808
475,612
290,896
27,467
722,107
209,543
0

$144,502
167,030
453,076
288,614
27,877
703,305
208,558
0

$120,600
154,062
442,623
195,192
23,084
577,754
202,774
0

MUTUAL SAVINGS BANK DEPOSITS
9 Baltimore Banks

Total deposits

July 31
1941
$223,993,945

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

June 30
1941
$224,593,340

July 31
1940
$222,693,076

DEBITS TO IND IVIDU AL ACCOUNTS
Fifth District
000 omitted
June
July
1941
1940

July
1941

CITIES
Dist. of Col.
Washington

of Change
Month Year

%

$ 351,981

$ 359,738

$ 299,105

- 2

536,045
11,348
12,238

559,072
11,035
11,821

415,299
9,608
10,190

— 4
+ 3
+ 4

+ 29
+ 18
+ 20

North Carolina
Asheville ...............
Charlotte ...............
Durham .................
Greensboro ...........
Raleigh .................
Wilmington .........
Winston-Salem . .

17,926
90,057
33,625
24,327
61,704
19,198
48,765

17,169
96,732
37,862
26,877
60,094
19,369
48,783

13,284
63,979
30,647
19,776
50,205
11,992
40,162

+ 4
— 7
— 11
— 9
+ 3
— 1
— 0

+
+
+
+
+
+
+

35
41
10
23
23
60
21

South Carolina
Charleston ...........
Columbia .............
Greenville .............
Spartanburg -----

29,721
38,303
27,082
15,470

30,603
39,748
26,890
14,654

20,046
30,529
19,301
9,793

—
—
+
+

3
4
1
6

+
+
+
+

48
25
40
58

Virginia
Danville ...............
Lynchburg ...........
Newport News . .
Norfolk .................
Portsmouth .........
Richmond .............
Roanoke ...............

10,088
18,405
14,827
78,287
7,039
196,369
34,243

10,093
17,493
15,364
73,862
6,848
193,695
34,966

6,948
15,426
13,640
58,013
4,906
155,127
28,051

—
+
—
+
+
+
—

0
5
3
6
3
1
2

+
+
+
+
+
+
+

45
19
9
35
43
27
22

West Virginia
Charleston ...........
H untington...........
Parkersburg .........
District Totals . .

67,059
21,959
13,724
$1,779,790

62,293
20,465
11,692
$1,807,218

54,179
17,422
10,598
$1,408,226

+ 8
+ 7
+ 17
- 2

+
+
+
+

24
26
29
26

STATES
...........
Dist. of Columbia .............................. ...........
...........
West Virginia .................................... ...........
North Carolina .................................. ...........
South Carolina ................................. ..........
District Average ............................ ...........

...

C O M M E R C IA L FAILURES
PERIODS
July
June
July

Number of Failures
District U. S.

Total Liabilities
District
U. S.

1941.......................
1941.......................
1940.......................

16
27
51

908
970
1,175

$ 198,000
152,000
756,000

$ 13,422,000
9,449,000
16,213,000

7 Months, 1941.......................
7 Months, 1940.......................

250
345

7,610
8,294

2,731,000
4,172,000

85,578,000
99,694,000

Source:

Dun & Bradstreet




Percentage change from
June 1941 to July 1941
In number
In amount
on payroll
of payroll
+ 1.5
+ 1 -2
+ 0 .6
+ 2.2
+ 0.1
+ 1 .9
— 4.8
+ 1 .1
+ 0 .8
+ 2.0
+ 0.7
+ 4.9
+ 0.3
+ 1 .1

A U TO M O B ILE RE G ISTRA TIO N S

+ 18

Maryland
Baltimore .............
Cumberland .........
Hagerstown .........

Employment in the Fifth district continued at a very
high level in July and early August, but a considerable
amount o f unemployment is expected to occur in the near
future as a result o f non-defense industries having to re­
strict or stop operations because o f shortages o f raw ma­
terials. Unless substitutes for silk can be found, many
workers in silk hosiery mills may be laid off, and workers
in cotton textile converting and printing mills may be a f­
fected as mills continue to concentrate on production o f
textiles suitable for defense uses. Priorities on iron and
steel will affect both skilled and unskilled workers, many
o f whom cannot follow the jobs to defense areas. On the
other hand, many defense projects and industries handling
defense orders need additional workers but cannot house
any more people near the jobs. On the whole there is
work for practically all able bodied people, but not all
labor is mobile and workers with families and property
which tie them to a restricted area may not be able to
obtain work when priorities get fully under way. The
following figures, compiled for the most part by the Bur­
eau o f Labor Statistics, show the trends o f employment
and payrolls in the Fifth district from June to July:

Sales o f new passenger automobiles in July declined
moderately from sales in June, but continued far ahead
of 1940 sales in the corresponding month. Dealers’ stocks
are lower than in most years when manufacturers stop
production preparatory to a shift over to new models, and
some dealers cannot supply all body types. Used cars
have shared in high sales, and stocks on used car lots
are only sufficient to meet current needs. Gasoline re­
strictions are expected to have some effect on the new and
used car markets, but with substantial cuts in the new car
supply in prospect when 1942 models appear, a moderate
decrease in demand for cars would not be entirely unwel­
come.
The following registration figures for new passenger
cars were furnished by R. L. Polk & Co., o f D etroit:
REGISTRATION OF N E W PASSENGER CARS— NUMBER
STATES
Maryland ..........
Dist. of Col..........
West Virginia ..
No. Carolina . ..
So. Carolina . . .

July
1941
5,979
3,407
9,627
4,306
6,927
3,494
33,740

July
1940
4,909
2,695
5,985
3,177
5,415
2,543
24,724

%
Change
+ 22
+ 26
+ 61
+ 36
+ 28
+ 37
+ 36

7 Months 7 Months
1941
1940
31,753
43,127
17,799
23,669
53,004
34,590
26,073
20,487
48,790
32,071
26,448
17,738
221,111
154,438

%
Change
+ 36
+ 33
+ 53
+ 27
+ 52
+ 49
+ 43

BU ILDIN G PERM ITS A N D C O N STR U C TIO N CO N TR A C TS

Activity in construction fields continues at a very high
level, although there was a decrease in work provided for
in July permits and contracts in comparison with the June
volume. Building permits issued in 29 Fifth district cities
in July totaled $11,584,377, in comparison with $13,533,-

MONTHLY REVIEW
100 in June 1941 and $14,056,879 in July 1940. W ash­
ington led in July valuations with permits totaling $4,334,150, Baltimore was second with $2,948,502, N orfolk
third with $625,805, Richmond fourth with $341,886, and
Charleston, S. C., fifth with $252,275. Permits in the
29 cities in the first seven months of 1941 totaling $85,373,524 exceeded 1940 valuation o f $71,059,188 in the cor­
responding period.
Contracts actually awarded for construction work in
the Fifth district in July 1941 totaled $64,333,000, includ­
ing rural as well as urban projects. This amount contrasts
with $92,503,000 in June 1941 awards, and with $57,234.000 in July 1940. Many contracts awarded during
the past year were for defense work, but figures on pri­
vately financed work were also relatively high.
Figures on contract awards by states for June 1941,
which were not available when the July 31 R eview went
to press, were reported by the F. W . Dodge Corporation
as follow s:
CONSTRUCTION CONTRACTS AW ARDED
STATES
Maryland ................................
Dist. of Col.............................
Virginia ..................................
West Virginia .....................
North Carolina ...................
South Carolina ...................
Fifth District .................

June 1941June 1940
% Change
$29,018,000
$ 9,606,000
+202
12,068,000
3,304,000
4-265
19,950,000
6,419,000
+211
3,751,0003,751,000
0
22,185,000
4,172,000
+432
5,531,000
1,909,000
+190
$92,503,000
$29,161,000
+217

BITU M IN OU S C O A L M IN IN G

Bituminous coal production in July was substantially
above seasonal level, due to demand from industry and a
continuation o f replenishment o f reserves which were de­
pleted during the April shut-down. Output in July o f
43.300.000 net tons exceeded June production o f 42,774,000 tons, and was 21 per cent above 35,890,000 tons mined
in July 1941. Total production in the seven elapsed
months o f 1941 reached 268,702,000 net tons, an increase
o f 5 per cent over 255,473,000 tons in the corresponding
period last year, in spite o f the fact that production o f
coal in April 1941 was merely nominal. Shipments of
coal through Hampton Roads this year to August 9 to­
taled 13,186,519 tons, compared with 14,160,904 tons
shipped to the same date in 1940. Most of the decrease
was in foreign cargo and foreign bunker coal. In the
Fifth district production of coal in July 1941, June 1941,
and July 1940, was as follow s:
SOFT COAL PRODUCTION IN TONS
REGIONS
July 1941
West Virginia ...................
..12,517,000
Virginia
..................................
1,675,000
Maryland ..................................
148,000
5th District .....................
14,340,000
United States ...............
43,300,000
% in district ................. .................... 33

June 1941
13,035,000
1,642,000
155,000
14,832,000
42,774,000
35

July 1940
11,074,000
1,265,000
98,000
12,437,000
35,890,000
35

CO TTO N TEX TILES

The cotton cloth market in July was sluggish, with very
little trading as the market awaited a revision of ceiling
prices originally imposed in June. Most mills are sold up
months ahead, and therefore trade expanded little even
after new ceiling prices were announced. Defense orders
continued heavy in July and at the end of the month there
was talk of priorities, with allotment o f production and
reduction o f goods available for civilian usage. Print
cloths, carded broadcloths, combed broadcloths, narrow
sheetings, osnaburgs and tobacco cloths were under ceil­
ings for the entire month o f July, and prices o f other



3

goods were unchanged as mills and merchants virtually
withdrew quotations pending the imposition o f ceilings.
Higher cotton prices in July reduced mill margins to
about 19.00 cents for 17 constructions, compared with
21.84 cents in June and 11.00 cents in July 1940.
COTTON CONSUMPTION— FIFTH DISTRICT
MONTHS
July
June
July
7 Months,
7 Months,

1941...................
1941...................
1940...................
1941...................
1940...................

In bales
No. Carolina So. Carolina Virginia
215,790
156,943
19,246
223,743
169,452
20,192
144,439
116,248
10,440
1,279,532
964,944
107,576
1,004,860
783,394
78,471

District
391,979
413,387
271,127
2,352,052
1,866,725

R A Y O N Y A R N PRO D U CTIO N

Shipments o f rayon yarn to domestic consumers in the
United States totaled 39,400,000 pounds in July, com ­
pared with 38,300,000 pounds in June and 32,100,000
pounds in July 1940, according to Rayon Organon for
August. In the first 7 months o f 1941 shipments totaled
258.600.000 pounds, an increase o f 18 per cent over ship­
ments o f 218,300,000 pounds in the 1940 like period.
Shipments last month exceeded production for the fourth
consecutive month, and reserve stocks o f yarn in the hands
o f producers declined from 4,600,000 pounds on June 30
to 3,600,000 pounds on July 31. The freezing o f raw
silk stocks for defense usage is substantially increasing
the demand for rayon yarn, and on August 2 the O P A C S
ordered an emergency allocation program for August and
September under which all rayon yarn producers must
set aside 10 per cent o f their daily output and 10 per cent
o f their stocks on hand for a Government pool, from
which allocations will be made to manufacturers o f hosi­
ery and other products heretofore largely or wholly made
o f silk. The order also provides that 70 per cent o f the
pooled yarns will be made available to hosiery mills and
the remaining 30 per cent to other manufacturers o f silk
products. Inventories o f rayon filament yarn held by
broad weavers at the end o f July 1941 totaling 28,300,000
pounds show a decline from 29,500,000 pounds held on
June 30 this year, but are moderately higher than inven­
tories totaling 24,800,000 pounds held on July 31, 1940.
C O TTO N STATISTICS

Spot cotton prices on 10 Southern markets rose steadily
during July but dropped moderately in the first half o f
August. The average price paid for 15/16 inch middling
cotton rose from 14.40 cents on July 3 to 16.72 cents on
July 25, but then dropped back to 15.74 cents on August
15. A year earlier, August 16, 1940, the average basic
price on the same markets was 9.93 cents, an increase o f
about $29 a bale in the year.
The first forecast on production o f cotton was made on
August 8 by the Department o f Agriculture, and indicated
a yield o f 10,817,000 equivalent 500 pound bales against
12.566.000 bales in 1940 and a ten-year average o f 13,246.000 bales. The 1941 crop as forecast is the smallest
since 1935 and 14 per cent below the 1940 crop. In the
Fifth district, all states show lower yields, than a year ago,
Virginia decreasing 16 per cent, North Carolina 33 per
cent, and South Carolina 56 per cent, the last named state
indicating the smallest crop since 1878. A part o f the 1941
reduction in prospective yield is due to acreage reduction,
but unfavorable weather and weevil damage account for
most o f it. Yield figures for Fifth district states are
shown on page 4.

MONTHLY REVIEW
Details of the 1941 Government cotton loan program
were released early in August. Rates range from 14.40
cents in New M exico to 15.29 cents in the Carolina mill
sections for middling 15/16 inch, net weight basis. The
rates are much higher than those in force in 1940, and are
equal to about 85 per cent o f the so-called parity price.
COTTON CONSUMPTION AND ON HAND— BALES
July
Year Ended July 31
July
1940
This Year Last Year
1941
Fifth district states:
285,912
4,421,416 3,719,112
418,620
Cotton consumed .......................
Cotton growing states:
535,002
8,280,340 6,646,532
Cotton consumed .......................
791,824
Cotton on hand July 31 in
742,178
................................
Consuming establishments . . 1,471,018
Storage & compresses ........... 9,300,041 9.,044,387
United States:
622,723
9,718,220 7,783.774
Cotton consumed .......................
928,943'
Cotton on hand July 31 in
972,353
................................
Consuming establishments . .
1,874,187
,121,817
................................
Storage & compresses ........... 9,704,095 9:
136,751
1,083,505 6,191,712
Exports of cotton...........................
32,718
,919,000
................................
Spindles active, U. S...................... 23,027,818 21

CROP FO RECASTS

The following figures, issued by the Department o f
Agriculture, show forecasts o f production based on A u g ­
ust 1 conditions, compared with yields in 1940 and in the
10-years 1930-1939:
Cotton (Bales)
% Change

Acreage
North Carolina
South Carolina
Fifth District

...

+
—
—
—

West Virginia .........
North Carolina ----South Carolina
Fifth District . . .

July 1941
June 1941
July 1940
Smoking & chewing
tobacco, pounds ...............
25,246,366
24,729,260
26,241,167
Cigarettes, number .................
18,404,257,790 18,498,764,920 15,912,640,803
Cigars, number .......................
487,033,145
478,802,003
460,522,504
3,588,223
2,930,255
3,091,422
SnufT, pounds ...........................

R E T A IL A N D W H O LESALE TR A D E
DEPARTMENT STORE TRADE
Percentage increase or decrease in sales, stocks,
outstanding orders and outstanding receivables in
July 1941 in comparison with July 1940 figures:
Sales
Stocks
Orders Receivables

Same stores by States:
Maryland (13) ..................... ........+ 2 7
Virginia (16) ....................... ........+ 2 9
West Virginia (15) .................+ 2 5
North Carolina (16) ...................+ 2 4
South Carolina (12) .......... ........+ 37

16)
20)
21)
16)
20)

Maryland .............
Virginia .............
West Virginia ..
North Carolina .
South Carolina .
Fifth District

+ 97
+ 98
+113
+126
+106

+15
+12
+18
+12
+15

( + 20)
(+ 2 2 )
( + 18)
( + 18)
(4-23)

RETAIL FURNITURE SALES
% Changes in Sales, Julyand 7 Months of 1941

Maryland (9) ........................................
Dist. of Col. (7) ..................................
Virginia (13) ........................................
North Carolina (5) ..............................
South Carolina (7) ..............................
District (41) ....................................
Individual Cities:
Baltimore (9) ......................................
Richmond (5) ......................................
Washington (7) ....................................

Compared with
July 1940
+51
+57
+28
4-38
+50
+47

Compared with
7 Months 1940
+26
+41
+28
4-25
+38
+32

+51
+ 1.9
+57

+26
4-12
+41

W H O LESALE TRADE, 201 FIRMS

LINES
Automotive supplies (9)
Shoes (5) ___
Drugs & sundries ( 1 0 )..
Dry goods ( 8 ) .................
Electrical goods ( 1 9 ) ...
Groceries (56) .................
Hardware (15) ...............
Industrial supplies (10)
Paper & products ( 9 ) . . .
Tobacco & products (10)
Miscellaneous (50) ----District Average (201)
Source:

Net Sales
July 1941
compared with
July
June
1940
1941
+ 43
— 20
+ 63
+ 25
+ 36
+ 10
+ 69
+ 8
+ 54
— 11
+ 19
+ 9
+ 55
+ 6
+ 77
+ 8
+ 41
+ 11
+ 35
+ 12
+ 42
+ 7
+43
+ 5

Bureau of the Census.




8,342,000
8,643,000
2,154,000
4,807,000
1,364,000
25,310,000

+
+
+
+

Stocks
July 31, 1941
compared with
July 31 June 30
1940
1941
+ 15
+ 3
— 0
+ 7
+ 35
— 4
+ 26
+ 8
+ 78
+ 10
+ 12
+ 1
— 0
+ 3
— 2
+ 11
+ 12
+ 5
+ 27
0
+ 40
+ 1
+ 25
+ 4

Ratio July
collections
to accounts
outstanding
July 1
71
54
104
47
79
96
49
87
74
87
70
73

1, 120,000

1.209.000
2.415.000
1.562.000
6.500.000
11.700.000
23.386.000

+ 25

4
5
5
7

1.932.000
1.462.000
5.952.000
10.890.000
21.356.000

1.325.000
2.116.000
1.931.000
4.460.000
9.238.000
19,070,000

17.535.000
36.490.000
12.852.000
44.733.000
24.304.000
135,914,000

16.173.000
32.418.000
12.610.000
43.507.000
22.831.000
127,539,000

550,000
1,252,000
833,000
975,000
539,000
4,149,000

467.000
924.000
642.000
744.000
398.000
3,175,000

31,920,000
100,509,000
2,790,000
526,505,000
82,215,000
743,939,000

26,901,000
99,861,000
2,985,000
529,356,000
85,656,000
744,759,000

2,898,000
10,412,000
3,630,000
8,720,000
3,192,000
28,852,000

2,997,000
10,661,000
2,844,000
8,182,000
2,475,000
27,159,000

1,485,000
3,875,000
7,104,000
5,040,000
17,504,000

1,071,000
4,061,000
8,354,000
5,401,000
18,887,000

216,000,000
371,000,000
23,250,000
610,250,000

149,865,000
249,288,000
9,041,000
408,194,000

Corn (Bushels)
Maryland .............
Virginia .............
West Virginia . .
North Carolina .
South Carolina .
Fifth District

16.596.000
34.372.000
12.404.000
49.770.000
22.964.000
136,106,000

— 4
— 7

—2
—2

Hay (Tons)
+

1
0
2
1
8
2

West Virginia ...........
North Carolina ........
South Carolina .........
Fifth District

+
+
+
+

+ 3
— 2
— 10
+ 1
+ 5
+ 1

491,000
962,000
775,000
1,044,000
590,000
3,862,000

Tobacco (Pounds)

* Includes stores reporting sales only.
N ote: Second figure under Sales, in parentheses, compares combined sales
in 7 months of 1941 with sales in first 7 months of 1940.

STATES

7,566,000
8,463,000
2,016,000
6,132,000
2,688,000
26,865,000

(Bushels)
7,980,000
7,950,000
2,030,000
6,594,000
2,900,000
27,454,000

+11

West Virginia . . . . .
North Carolina . . . .
South Carolina
Fifth District . . .

+26
+2,4
+15
+21
+20

33,000
629,000
824,000
1,486,000

Oats (Bushels)

Bureau of Internal Revenue receipts for July show pro­
duction of tobacco products as fo llo w s :

(+
(+
(+
(+
(+

2
3
6
8
8
1

Yield
1930-1939

25,000
739,000
966,000
1,730,000

21,000
497,000
428,000
946,000

Wheat
—
—
—
+
+
+

TO B A C C O M A N U F A C T U R IN G

Richmond (5) ....................... ........ + 2 2
Baltimore (10) ..................... .........+ 2 7
Washington (7) ................... ........ + 3 3
Other Cities (12) ................. ........ + 2 4
Fifth District (79)* ................... + 2 9

6
4
2
3

Yield
1940

Yield
1941

32,258,000
87,739,000
2,310,000
479,035,000
74,375,000
675,717,000

Irish Potatoes (Bushels)

West Virginia ........
North Carolina
South Carolina
Fifth District . . .

— 3
+ 1
0
+
+

7
1

2,586,000
6,776,000
3,300,000
6,642,000
2,730,000
22,034,000

Sweet Potatoes (Bushels)

North Carolina .........
South Carolina .........
Fifth District -----

+ 11
+ 3
+ 8
+ 3
+ 6

North Carolina ........
South Carolina .........
Fifth District

— 6
— 5
— 30
— 7

1,700,000
3,840,000
8,240,000
4,875,000
18,655,000

Peanuts (Pounds)
165,000,000
284,760,000
14,070,000
463,830,000

Apples, Commercial (Bushels)

West Virginia .............
North Carolina ...........
Fifth District .........

2,250,000
12,390,000
5,102,000
1,400,000
21,142,000

2,077,000
10,660,000
4,868,000
962,000
18,567,000

1,996,000
10,366,000
4,796,000
966,000
18,124,000

470,000
1,392,000
446,000
1,344,000
2,158,000
5,810,000

348,000
902,000
267,000
1,920,000
1,236,000
4,673,000

Peaches (Bushels)

West Virginia .............
North Carolina ..........
South Carolina ...........
Fifth District ........

(Compiled August 21, 1941)

478,000
2,116,000
468,000
2,820,000
3,549,000
9,431,000

MONTHLY REVIEW, August 31, 1941

FEDERAL RESERVE BANK OF RICHMOND

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
IN D USTRIAL

PRODUCTION

Industrial activity in Ju ly and the first h alf o f A u g u st w as m aintained at
the high level reached in June. W holesale com m odity prices advanced fu rth er
and distribution o f com m odities to consum ers was in ex ception ally large volum e.
P R O D U C TIO N

Federal Reserve index of physical volume of
production, adjusted for seasonal variation, 19351939 average=100. By months, January 1935 to
July 1941.

DEPARTMENT STORE SALES AND STOCKS

Federal Reserve indexes of value of sales and
stocks, adjusted for seasonal variation, 1923-1925
average=100. By months, January 1935 to July
1941.

WHOLESALE PRICES

V olum e o f industrial output show ed little change fr o m June to July. R e­
ductions in activity at au tom obile fa ctories and steel m ills w ere largely offset
in the total b y fu rth er increases in the m achinery, aircra ft, shipbuilding, and
lum ber industries. The B oa rd’ s adju sted index, w hich includes allow ance fo r
a considerable decline at this season, advanced fr o m 157 to 162 per cent o f the
1935-1939 average.
Steel production, w hich in June had been at about 98 p er cen t o f capacity,
declined to 96 per cent in July, ow ing in pa rt to h oliday shutdow ns at some
mills. In the first h alf o f A u gu st steel output w as again at about 98 per cent
o f capacity. A u tom obile production in Ju ly declined less than usual, bu t in
the first h alf o f A ugust there was a sharp redu ction , as m ost plants w ere closed
to prepare f o r the shift to new m odel produ ction . A ctiv ity in the n on ferrou s
m etals industries continued at a high rate. E arly in A u g u st copper, p ig iron,
and all form s o f steel w ere placed under com plete m andatory priority control
as it becam e evident that actual dem and fo r these m etals could n ot be fu lly met.
In the w ool, cotton , and rayon textile industries and at shoe fa ctories ac­
tivity in J u ly was m aintained at or near the peak levels o f oth er recen t months
and p rodu ction o f chem icals rose fu rther. O utput o f m anu factu red fo o d s in­
creased less than seasonally fr o m the high level reached in June.
Coal production declined slightly in July but as in June was unusually large
fo r this tim e o f year. Crude petroleum produ ction was m aintained at about
the high rate that had prevailed in the previous tw o months.
V alue o f construction con tra ct awards in Ju ly increased fu rth er to a level
m ore than tw o-fifths higher than a year ago, accord in g to F. W . D odge C or­
poration reports. The rise reflected chiefly a continu ed increase in contracts
fo r public construction, m ostly defen se p rojects. P rivate residential building
contracts increased som ewhat, although there is usually som e declin e at this
season, w hile awards fo r other private bu ildin g declined fu rth er fr o m earlier
high levels.
D IST R IB U T IO N
Sales at departm ent stores and in rural areas declined b y m uch less than
the usual seasonal am ount in July and variety store sales increased fu rth er. In
the first h a lf o f A ugust departm ent store sales rose sharply.
Total loadings o f revenue freig h t in Ju ly and early A u gust showed little
change from the advanced level reached in June. Grain shipm ents, w hich had
been larger than usual in M ay and June, increased less than seasonally and
loadings o f coal declined som ewhat.
C O M M O D ITY PR IC E S

Bureau of Labor Statistics’ indexes, 1926=100.
“ Other” includes commodities other than farm
products and foods. By weeks, January 5, 1935 to
August 16, 1941.

MEMBER BANKS IN 1 1 LEADING CITIES
0

The general index o f w holesale prices advanced a b ou t 2 per cent fu rth er
fr o m the m iddle o f July to the m iddle o f A u gust, reflectin g sharp increases in
prices o f a num ber o f agricultural and industrial com m odities. F ederal action
to lim it price increases w as extended to additional basic m aterials, including
burlap, silk, rayon fabrics, rubber, and sugar, and in the early part o f A u gu st
prices o f these com m odities in dom estic m arkets showed little change o r w ere
reduced.
On the other hand, prices fo r paper-board, au tom obile tires, and
cotton yarns and gray goods w ere advanced w ith Federal ap p rov al; prices o f
textile products not under Federal con trol continued to rise; and there w ere
considerable increases in prices o f lum ber, other bu ildin g m aterials, and chem i­
cals. On A u g u st 16 it was announced that f o r Southern pine m axim um prices
som ew hat below recen t high levels w ould becom e effective on Septem ber 5.
A G R IC U L T U R E
A gricu ltu ral production in 1941 m ay ex ceed that in an y previous year,
a ccord in g to indications on A u gust 1, and carryovers o f m a jor crops are u n ­
usually large. Crops o f w heat and oth er leadin g food stu ffs are expected to be
ex ception ally large, w hile substantial declines in p rodu ction are indicated f o r
the m a jor ex p ort crops— cotton and tob a cco. A lth ough the cotton crop is esti­
m ated at 10,600,000 running bales, or 1,800,000 bales less than last season,
total supplies o f cotton will be about the same ow in g to a larger ca rry ov er on
A u gu st 1. M arketings o f livestock and livestock products, except hogs, w ill be
substantially above last year.
B A N K C R E D IT
Total loans and investm ents at rep ortin g banks in 101 leading cities rose
fu rth er during the five w eeks ending A u gu st 13. Com m ercial loans continu ed
to increase substantially, w hile holdings o f U nited States G overnm ent ob lig a ­
tions showed little change. Bank deposits rem ained at a high level.
UNITED S T A T E S G O V E R N M E N T SE C U R IT Y P R IC E S

Wednesday figures, January
13, 1941.
Commercial loans,
dustrial and agricultural loans,
May 19, 1937 so-called “ Other
ported.




2, 1935 to August
which include in­
represent prior to
loans’* as then re­

A fte r advancing to the highest levels on record, prices o f both taxable and
partially tax-exem pt Treasu ry bonds declined som ew hat in the first pa rt o f
A ugust. On A u gust 15 the partially tax-exem pt 2 % per cent 1960-65 bonds
yielded* 2.06 per cent, com pared w ith the all-tim e low o f 2.02 per cen t on July
29. Y ields on Treasury notes showed little change in the period.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102