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MO N T H L Y

REVI EW

o f Financial and Business Conditions

F i f th
F ederal

Reserve
Dist r ic t

Federal Reserve Bank, Richmond 13, Va.

August 31, 1945

C A N C E L L A T I O N of war contracts and the winding
part offset expected declines in the last half year. Prices
^
up o f war production is progressing rapidly. When
of some agricultural products may ease somewhat during
the next twelve months, but in the main there is little
the war business is eliminated in the Fifth District, it
cause for concern regarding a general price decline in
would appear that somewhere around 300,000 workers
this period.
will have been displaced, which would leave the number
The Fifth District adjusted index o f department store
still employed some 14 percent higher than in 1939, if
sales after slumping notably in April and May established
none of the 300,000 were to find new employment.
a new high level in July, 8 percent higher than in June
There are, however, a considerable number of indus­
and 19 percent above July 1944. Employment termina­
trial developments and expansions already programmed
tions in Baltimore, Washington, N orfolk and Charleston,
for various areas in the District and together these will
South Carolina may have some adverse effect on depart­
give considerable employment during the construction
ment store sales for several months in the near
period. Gasoline stations have already begun
future, but the effect o f unemployment may
to reopen and other service industries, as well
CTORY
very well be partially or wholly offset by the
as farms, can absorb many workers. The cot­
stored up purchasing power, if stores can ob­
ton textile industry which should be expanding
BUY
U N IT E D
tain heretofore unpurchaseable merchandise
output for a considerable period of time could
STATES
WAR
which will be in demand. Department store
use possibly 75,000 workers now and still more
£ onds
AND
sales may also feel the effect o f price reductions
if a 40 hour week were resumed. The bitu­
STAMPS
in the next several months, if store policy
minous coal industry in the District is short
deems it necessary to close out substitute and
from 25 to 30 thousand miners from its normal
inferior quality merchandise.
labor complement, and the many diversified
Average daily cotton consumption in the District in
industries of the District will be straining to market much
July, as a result o f summer vacations and shut-downs for
needed products. Despite the early termination o f war
plant repair and other purposes, declined 15 percent from
contracts, the employment outlook in the Fifth District
June, and was 7 percent smaller than a year ago. July
is favorable.
is likely to mark the low point in cotton consumption for a
The farm income outlook, largely because of a decrease
period o f several years.
in production, indicates a somewhat lower level in the last
Bituminous coal output on an average daily basis de­
half of 1945 than in the same period o f 1944. Lower in­
clined 4 percent from June to July and in the latter month
come from cotton in the Carolinas will probably not be
was 6 percent smaller than in July, 1944. Not much relief
offset by a moderate increase in tobacco incomes. In the
first five months of 1945 farm income was 14 percent
in the labor supply should be anticipated for the remainder
higher than in similar months of 1944 and this will in
Continued on page 10
BUSINESS IN DE XES— FIFTH FEDERAL RESERVE DISTRICT
Average Daily 1935-39 = 100
Seasonally Adjusted
July
1945
Bank Debits .............................................................. —................
Bituminous Coal Production* ......,........................... ................
Building Contracts Awarded ....................................-...............
Building Permits Issued .......
.................. ..............
Cigarette Production ............... ..................................
Cotton Consumption* .................................................. ..............
Department Store Sales ............................................................
Department Store Stocks ............... ......... ...... ...... .
Wholesale Trade— Four Lines ........... ............
.........
Retail Furniture Sales ...............................................

* Not seasonally adjusted.



June
1945

May
1945

July
1944

221

257
142

225
137
94
49
155
141

210

210

212

191
180
139

190
170
132

136
180
86

165
118
252
218
177
162

102

60
174
139
235
208
173
170

144
102

39
159
127

July 1945 from
June ’45
July ’45
— 14
— 4
+ 76
+43
— 5
— 15
+ 7
+ 5
+ 2
— 5

~“ 5
1
— 6
+ 76
+121

+ 4
— 7
+19
+15
+ 4
+23

MONTHLY REVIEW

2

The Seafood Industries of the Chesapeake Bay*
In the United States, the seafood industry is perhaps
the least developed of the four major extractive indus­
tries (the others being mining, forestry, and agriculture).
Much o f this underemphasis probably results from the
large land area o f this country in relation to its coastline,
and from the fact that population pressure is not great
enough (as it is in, say, Japan or Great Britain) to force
great dependence on the sea for protein foods. As a
result of these two circumstances, the per capita consump­
tion o f seafoods in this country is much lower than in
many other parts o f the world, and the population of
many inland sections consume very little seafood .1
In spite of the relative lack of emphasis laid on seafoods
as an article of national diet, the coastal waters of this
country are extremely rich in both variety and quantity
of marine life, and the taking of these forms contributes
greatly to the economic well-being of many sections of
the population .2 The Chesapeake Bay is one o f the rich­
est productive areas o f the Atlantic coast. The waters of
the Bay have been famous for many years as a source of
shellfish (primarily oysters and crabs) and have long
supported large commercial fishery operations of several
kinds. In 1940, the Bay states of Maryland and Virginia
produced seafoods valued (to the fishermen) at almost
§ y million, although an unknown part was actually
taken in Atlantic waters rather than in the Bay, itself.

72

Sum mary

of

C h e s a p e a k e B a y F is h e r ie s

The fishery operations (fish and shellfish) carried out
in an area as large as the Chesapeake Bay are so diverse
and employ such a variety of methods that it is difficult
to summarize them, but it is possible to present some o f
the more important economic characteristics of the in­
dustry. Table 1 indicates the volume of employment in
respect to fishing and the secondary level o f seafood
handling and processing. It will be noted that employ­
ment is almost evenly divided between fishermen anti
secondary occupations for the Bay total, although fisher­
men tend to predominate slightly in Virginia and sec­
ondary workers in Maryland.
* This article reports on a reconnaissance survey of the upper Chesapeake
Bay in which several key men in the seafood industry were interviewed
at more than one fishing port. Materials for this paper have been pro­
vided by watermen, fish houses, packing plants, and Government officials
charged with the regulation of the industry. Some over-all statistics
have been taken from the reports o f the United States Fish and Wildlife
Service, Department o f the Interior.
1 Estimated per capita annual consumption of seafood products in certain

countries of the world (as reported by the Fish and W ildlife Service)
are: Chile, 13 pounds; England, 35; Norway, 44; Sweden, 52; and
Japan, 55. In contrast, the estimated U. S. consumption for the period
1930-1940 varied from a low of 11.2 pounds per person per year to a high
of 15.9. Since the beginning of the current war, U. S. civilian consump­
tion has fallen to a new low of less than 10 pounds.
2 In 1940, the Fish and W ildlife Service estimated that the taking of all
forms o f seafoods gave employment to at least 125,000 persons in the
United States (including Alaska) and provided them with a gross income
of about $99 million, or approximately $800 apiece. This makes no men­
tion of other incomes which many of these persons gained by guiding
sport-fishing parties, further processing their catch, etc. Approximately
the same number of persons were employed on the land in handling and
processing marine products.




TABLE I :
EMPLOYMENT IN FISHERIES AND RELATED INDUSTRIES,
CHESAPEAKE BAY STATES, 1940
Per Cent
Employment
The
of Bay
Classes
Bay
Maryland Virginia
Total
Total—All Classes .....................

27,623

12,206

15,417

100.0

Fishermen—Total

14,269

5,981

8,288

51.7

2,147
7,087
5,035

688
3,002
2,291

1,459
4,085
2,744

7.8
25.7
18.3

1,023

269

754

3.7

Wholesale & Manufacture—Total

12,331

5,956

6,375

44.6

Proprietors ........................... .
Salaried workers .......................
Wage earners2 .........................

508
378
11,445

245
204
5,507

263
174
5,938

1.8
1.4
41.4

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

On vessels .................................
Other 1
—regular .......................
Other 3 casual .........................
—
Transporting

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

1 Fishermen on shore or from boats. “ Regular” indicates primary occupa­
tion ; “ casual” indicates part-time.
2 Average number of wage earners for the fishing season.
Source: U. S. Fish and W ildlife Service.

In Table 2, values are shown for the more important
types of fish and shellfish taken in the Bay states. U n­
fortunately, it is not possible to distinguish between the
value o f the catch within the Bay and that o f the catch in
ocean waters. The geography o f Maryland and Virginia
appears to be such that most o f the catch o f the most
important species is taken in the Bay or its tributaries.
As of 1940, oysters and crabs were the most important
seafoods produced in this area, accounting for more than
half the income o f Bay fishermen and more than fourfifths the income o f Maryland fishermen. In Virginia,
the croaker and menhaden3 are almost as important as the
crab. It should not be thought that the present propor­
tionate distribution o f the catch (either by volume or by
value) indicates the relative concentration of the several
species in these waters. On the contrary, the marine
forms of the Bay appear to be undergoing constant altera­
tion in proportionate abundance. This apparently results
from both changes in the marine environment and relative
rates o f depletion through fishing, but biologists have not
yet agreed as to the proper allocation o f responsibility,
nor the final conservational measures to be instituted. An
example will illustrate one result o f these changes: ac­
cording to older fishermen on the Bay, croakers were
rarely caught (either in nets or on lines) prior to the last
fifteen or twenty years— now they are one o f the most
abundant and ubiquitous commercial species o f the Bay.
In addition to the direct income to fishermen from the
sale of their catch, the seafood industry provides a living
to the many persons employed in wholesale and manufac­
turing processes. W ages and salaries paid these persons
during the 1940 season totaled over $ 3^2 million. The
total value o f products o f this industry (edible and nonedible, all form s) in that same year was $11 million. This
product is widely distributed throughout the United States.
In 1936, a survey by the Fish and W ildlife Service found
fresh and frozen seafoods from the Bay states figuring
to a fairly important degree in the retail trade o f cities
3 Although menhaden can be used as a food fish, their major use is in the
preparation of fishmeal (for feeds and fertilizers) and oil.

3

MONTHLY REVIEW
TABLE 2:

P ort

VALUE OF CATCH, BY MAJOR SPECIES;
CHESAPEAKE BAY STATES, 1949
Per Cent of Total

Value ($1,000)
The Bay Maryland Virginia

Species
Total

..........

Oysters ............
Crabs .............
Croaker ..........
Menhaden
Clams ...........
Shad ...............
Squeteagues 1 .
Striped Bass Alewives ........
Flounder ........
All other ........

The Bay Maryland Virginii

7,456

2,599

4,858

100.0

100.0

100.0

3,217
1,148
615
549
370
356
272
174
163
92
501

1,644
509
55
a
17
39
34
110
52
29
108

1,573
638
560
548
352
317
238
64
111
63
393

43.1
15.4
8.2
7.4
5.0
4.8
3.6
2.3
2.2
1.2
6.7

63.3
19.6
2.1
0.0
0.7
1.5
1.3
4.2
2.0
1.1
4.2

32.4
13.1
11.5
11.3
7.2
6.5
4.9
1.3
2.3
1.3
8.1

1 “ Sea-trout” or weakfish.
2 Rock.
a Less than $500.
Source: U. S. Fish and Wildlife Service.

as far west as Nebraska, as far north as Massachusetts,
and as far south as Georgia. In all probability, the canned,
smoked, and salted product^ of the Bay are national in
their distribution.
In the hope of gaining a more intimate insight into the
conditions affecting it in the upper Bay, interviews were
arranged with members of different parts o f the industry.
The rest of this article will be devoted to some points
brought out in these conversations. Local conditions in
three ports will be stated briefly with the more general
topics of discussion treated separately.
P ort

A

A t this Western Shore port, the fishing industry com­
prises a small group of local fishermen (less than one
hundred) and a medium-sized wholesale house.
The
house has grown from small beginnings over the past
twenty or thirty years into one which buys widely and
sells most o f its products in nearby large cities. It does
not depend on the catches of local fishermen for its entire
supply, but tends to follow fishing operations throughout
the Bay and along the Atlantic shore from Hatteras to
Cape Cod, approximately. Although finfish o f various
kinds make up an important part o f its stock-in-trade, this
house has done a very large business in live crabs and
oysters (both in the shell and shucked). The operator
was quite pessimistic about prospects for these last two
products, feeling that natural and economic forces have
combined to endanger the future abundance of both
species. Soft crabs constitute an important source of
income in many parts of the Maryland Bay 4 and are par­
ticularly sensitive to environmental factors. In recent
periods, a heavy flow of fresh water from its tributaries
has tended to lower the salinity o f Bay waters, especially
in the main crab grounds (the sheltered inlets), and
brought on the wholesale death of much o f the soft crab
population. W ith respect to oysters, this operator felt that
silting and overfishing had depleted many of the most
productive bars to the point that he never £gain expected
to receive a supply comparable to that of the past.
4 Because of the migrations of crabs at different phases of their life-cycle,

crabs tend to summer in Maryland waters, where they perform most of
their moults, and to winter (particularly the fertile females) in Virginia
waters. Thus, soft (newly moulted) crabs are scarce in Virginia. A l­
though details o f the crab’s biology cannot be treated in this limited
space, it should be noted in passing that herein lies the basis o f most
of the controversy in this part of the industry. The natural behavior of
the crab is an important source of discord in the Bay area.




B

This Eastern Shore community depends on fishing to
a higher degree, in all probability, than does the average
Bay community. O f its approximately 1,000 inhabitants,
about 200 are watermen and an equal number are em­
ployed in the two large fish plants. The informant felt
that probably 90 per cent o f the area’s normal labor force
was employed in one part or the other o f the seafood
industry. Although most of the local catch is sold to the
local houses, the fishermen often take their catches to
other markets, and the houses often buy from outside
watermen. It was estimated that the taking and process­
ing o f seafoods contributed at least $1.5 million annually
to the community’s income, with watermen receiving in­
dividual gross income o f from two to twelve thousand
dollars a year in recent times. Most of the watermen in
this area spend almost the entire year fishing or in related
water-bourn activities (transportation or guiding sportfishing parties), rather than depending partly on farming
and logging, as is the practice in many communities. The
fishing capital, normally valued at from $500 to $5,000
per person, is shifted from one use to another. In the
course of a year, the same man may be oysterman, crab­
ber, and net fisherman, may possibly use his boat (or
boats) for the transportation of locally produced seafoods
or agricultural products to retail markets, and for the
guiding o f parties.
P ort

C

This is one o f the largest fishing markets on the East­
ern Shore. Here, in addition to the usual wholesale fish
houses, there are also several canning and processing
establishments for which fishery products constitute an
important part o f the raw material. It was not possible
to find any one person who had very comprehensive
knowledge o f all the activity of the area, but one of the
larger wholesalers was interviewed. According to this
informant, there are approximately 250 fishermen in the
immediate vicinity of this port, and the number o f persons
engaged in handling and processing the fish is from 125
to 150 per cent the number of fisfeermen. This would
imply the total employment o f from three to four hun­
dred persons (probably excluding proprietors and clerical
personnel in the fish houses) in the industry. The capital
investment in boats (excluding gear) was estimated to
run from $2,500 to $8,000 per fisherman, and the gross
income from two to five thousand a year. This source
estimated the net income of fishermen, under present w ar­
time conditions, to run as high as $75 per week during
the fishing seasons. 'Variations in the fishing seasons of
the different species make any comparison o f gross and
net income difficult.
T

he

M

a r k e t in g

of

S e afood P ro d u c t s

The watermen in the Bay conduct their activities in
many different ways, depending on the type o f operation
and on the size of their enterprise. The larger trawlers
and other vessels may stay out several days. If pursuing
a particularly perishable species, they may carry ice and
prepare their catch for preservation at short intervals
during the trip. On the other hand, the smaller boats
make no provision for overnight operations, and return to

4

MONTHLY REVIEW

their home ports daily. The many small oystermen and
crabbers dispose o f their catch daily for two reasons: first,
they use such small boats that they can easily fill them
in one d a y ; and second, the perishability o f the product is
such as to preclude a longer period between removal from
the water and sale. They sell either to “ buy-boats” or
directly to the houses.
Except in times of unusual abundance or scarcity the
prices paid for the raw seafoods are relatively rigid and
are usually set by the houses. Because it gives them
somewhat more bargaining power, the majority o f the
watermen prefer to sell to the houses and may “ shop
around” in search o f the best prices as long as the relative
perishability o f their commodity allows. The buy-boats,
on the other hand, go to the fishermen while they w ork;
and boats from competing houses may or may not arrive
on the grounds at the same time. In times o f relatively
slack demand the houses set their prices, and the buyboats 5 do not deviate from these prices all day. In times
o f relatively heavy demand, the buy-boats may be told to
get a specified amount o f different types o f fish, regard­
less o f the price which must be paid. W henever this
occurs and boats representing more than one house arrive
on the grounds at the same time, a fairly spirited and
informal auction may develop, with fishermen rowing from
boat to boat, haggling over prices, and disposing o f their
catch at the highest bid. Although similar interhouse com ­
petition may develop at the wharf, it should not be thought
that fishermen normally occupy a strong bargaining po­
sition. The raw catch is highly perishable, and fishermen
are almost completely dependent on fish houses in a rela­
tively small area for an outlet. Even though they may
shop around a large part o f the Bay, for example, the
watermen cannot by-pass the houses and reach the inland
markets; and the expense o f carrying the catch from place
to place may soon offset any possible increase in prices.
From all qualitative evidence, the retail demand for sea­
foods is relatively inelastic with respect to changes in the
price. In other words, as o f a given day, it is highly im­
probable that consumers will take a much greater-thannormal amount of any seafood because o f a moderate fall
in its price. Under these circumstances, the fish houses,
operating through relatively well-established trade chan­
nels to their terminal markets, are not able to respond to
rapid increases in supply by downward price adjustments
which will clear the market. In order to protect them­
selves, their suppliers, and their regular customers from
the effects o f oversupply, the fish houses divert surplus
seafoods into the canning and curing houses or into very
distant fresh markets.6 Plants which manufacture sea­
food products, primarily canners, freezers, salters, and
curers, are not as tightly bound to their supply. In times
o f over supply they can lay aside stocks which will carry
them through subsequent periods o f undersupply. T o the
degree that these processors can handle surplus fresh sea5 In some instances the buy-boats are independent operators who attempt
to profit from “ economic laziness” on the part of many fishermen (to
whom the convenience of disposal will offset the possibility of a better
price at the house). But, according to the consensus of those interviewed,
from 90 to 95 per cent of the buy-boats are furnished their capital by a
particular house and buy only for that house.
6 In doing this, the house may suffer some loss over sale in fresh markets
of adjacent cities, through either higher freight charges or lower unit
prices. Nevertheless, the reputation of “ taking care” o f their regular
connections and the resulting loyalty of suppliers and clients is well
worth the sacrifice and pays in the long-run.




foods, they add a needed degree o f stability to the first
market, protecting the fishermen from the vagaries of
nature.7
Although they may be present, no indications o f regular
patterns o f finance were discovered. During normal and
very prosperous times, the watermen are almost entirely
self-financed. In times o f very low prices and consequent
poor incomes, they often borrow current capital from
individuals, seldom from banks. The boats themselves
are seldom purchased with bank-credit.8 The houses may
furnish the current capital needs o f buy-boats, but they
seldom advance credit to fishermen. The houses them­
selves are usually self-financed through the ploughing back
o f profits in good times, or through “ silent partners.”
W hen they go to the banks they establish lines o f credit
and operate on an open account (which usually specifies
that the total debt outstanding at any time shall not exceed
a stated figure, and that the entire debt must be paid up
during the current season). Since the turnover in fresh
products is quite rapid, this financing by the house suffices
to finance the entire seafood trade, for the house extends
the usual business terms to its customers. Much the same
is true of the processors, although some o f them may
resort to field-warehousing in times o f abnormal over­
supply.
P ro blem s of t h e

I ndustry

Like every other industry in the country, the seafood
industry has felt the impact o f war-born circumstances
to a considerable degree. However, it appears quite safe
to say that the war has not overshadowed the normal
problems o f peacetime, for which no solution has yet
emerged. The primary effects o f the war have been short­
ages. Boats and vessels have been taken over by the
Government; many types o f gear and supplies have been
very tightly restricted; and labor has been short, particu­
larly in the house (skilled fishermen have been largely
exempted from the draft). A t the same time the demand
for protein foods has raised prices greatly and enhanced
the incomes of all active fishermen. A s a result, the values
of boats and gear have inflated to levels far above any
experienced in the recent past. Wholesale and manufac­
turing houses have been hardest hit, in all probability.
Although their costs have gone up and their means of
handling the seafoods have been reduced, they may be
forced to operate under reduced margins .9 The proprie­
tors interviewed did not consider their lot untenable, how­
ever, and expressed the feeling that economies o f final
sale (since large amounts o f their products go to the pro­
curement agencies) assured them fair incomes. A t times
during the war the packers have had difficulty in getting
7 But is should be pointed out that the members of the industry are human,
and therefore inconsistent. Although they welcome the dampening ef­
fects of processors’ . stocks in periods of oversupply, they resent them in
periods of scarcity.
8 As one informant phrased it, “ The banks dislike security that isn’ t tied
down in one spot.” He went on to say that many watermen who owned
homes or small farms (and probably the majority in his community did)
borrow from the banks to finance the purchase of boats, gear, etc., or
to acquire current capital. In this case, the usual security was their
real estate.
9 All processed seafood products are affected by OPA price regulations.
However, in the Chesapeake Bay region, the prices of fresh seafoods are
not regulated. This has allowed all branches of the fresh trade to make
good profits and has raised prices to fishermen considerably. Since these
latter influence the supply of processed seafoods (which are in great
demand by the Services) OPA has allowed prices in the processed trade
to rise enough to insure satisfactory returns and high productton.

MONTHLY REVIEW
cans and other supplies, ice and freezing facilities, and in
transporting their goods to market. Skilled labor (crabpickers, oyster-shuckers, etc.) has been very short.
The normal peacetime problems o f the industry revolve
around the maintenance o f a qualitatively and quantita­
tively uniform supply. These problems are far-reaching
in all their ramifications, involving as they do Govern­
mental conservation policies, the regulation of the industry,
and the mutual relations between the various segments o f
the industry. This whole subject is complicated by the
fact that, although the Bay is one body o f water over
which the marine forms are irregularly distributed and
constantly on the move, legal jurisdiction is divided be­
tween the two states of Maryland and Virginia. A s the
result o f purely natural forces, the fisheries interests of
the two states have often clashed over the types o f regu­
lations which should be applied in order to conserve the
resources of the Bay, and a regrettable lack o f uniformity
has developed between the fishery laws o f the two states.
In all probability, the fisheries o f both states, individually,
have suffered more than they have benefited from this
situation. A t the present, this problem is being attacked
from several angles, the most promising o f which are a
series o f interstate conferences and agencies which have
attempted to gain complete impartiality.1
0 So far, the
opposition o f minority groups in both states has blocked
bilateral action on the many points concerning which there
is general agreement, but progress undoubtedly has been
made toward the ultimate solution o f these problems. It
is noteworthy that almost every one interviewed on this
point used words which were practically identical: “ human
selfishness” was thought to be the big problem o f the
industryC o n c l u s io n s

Although relatively unimportant to the two states, in
the aggregate, the seafood industries of Maryland and
1 The most important official interstate attempts which have been made
0
are those under the Maryland-Virginia Compact of 1785 (primarily con­
cerned with the water boundaries o f the two states, but now being used
as a precedent for more general cooperative efforts) and the Chesapeake
Bay Panel of the Atlantic States Marine Fisheries Commission. To these
should be added the recent creation o f the Chesapeake Bay Fisheries
Commission, an independent (unofficial) agency -financed by the Gen­
eral Education Board, which is surveying the conditions within the Bay
and its adjacent counties. This survey is intended to produce impartial
recommendations which will be made to the legislatures of both states.




5

Virginia are o f utmost importance to the populations in
the immediate vicinity of the Bay. By far the majority
o f the watermen have relatively large amounts o f capital
invested in their boats and gear, spend the bulk o f each
year at their work, and derive respectable incomes from
the sale o f their catch. On shore there has grown up a
well-established industry which processes and distributes
the products o f the fisheries and gives employment to
about the same number of persons as do the fisheries,
themselves.
Prices paid for seafood products, from water to the
final consumer, appear to vary inversely with the supply,
since the demand is relatively constant and moderate
changes in retail prices appear to have little effect on the
amounts purchased. The fishermen, being in a relatively
poor bargaining position, feel the greatest impact o f sup­
ply on prices. In times o f undersupply their incomes are
much higher than normal, while in times o f over supply
they receive very low incomes. The presence o f a size­
able canning and preserving industry has done much to
dampen the violence o f these price fluctuations by assuring
a carryover from times o f abundance to times o f scarcity.
It is possible that improvement and expansion in this
phase o f the industry will go far toward creating a degree
o f security which is now lacking. However, the major
problem o f the industry will not be solved until conflicting
legal jurisdiction within Bay waters are replaced by uni­
formity of law and regulation. The present status of
biological understanding and interstate agreement is suf­
ficient to act as the basis o f better controls by both states,
but much remains to be learned about the marine life o f
the Bay before any final solution can be found.
A t present, the financing o f the industry does not appear
to be as regular in methods as might prove worth while.
Although commercial banks probably provide much o f the
outside capital o f the industry, this credit generally is
extended on non-fishery security under terms which prob­
ably are not ideally suited to the needs o f fishermen. It
might be possible to work out means o f directly financing
the watermen, in particular, under circumstances which
would prove beneficial to all parties. Certainly, within the
area o f greatest dependence on the fishery and seafood
industries, local experimentation might be very worth
while.

MONTHLY REVIEW

6

The Seventh War Loan
The Seventh W ar Loan sales in the Fifth Federal R e­
serve District established a new high war loan record o f
$1,501,534,000. This amount was 20.5 per cent larger
than the District’s sales in the Sixth W ar Loan. Although
the rise in the District's sales from the Sixth to the
Seventh W ar Loan was substantial, it was not as large a
percentage as was shown in the United States as a whole,
and the District’s percentage of the national total was
again reduced. The District’s largest percentage contri­
bution to the nation's war loan sales was made in the
Fifth Loan, when 5.88 per cent was sold. In the sixth
loan the Fifth District accounted for 5.76 per cent of
the United States total sales, and in the seventh loan 5.71
per cent. The reduction in the Fifth District’s percentage
of United States sales in the Seventh W ar Loan, as com­
pared with the Sixth W ar Loan, was due to the failure
o f the District’s sales to individuals, partnerships and per­
sonal trust accounts to maintain the pace set by those
sales in the nation. Sales to corporations and other in­
vestors in the Fifth District in the Seventh W ar Loan
were the largest percentage o f the United States total o f
such sales in any of the war loans, as the accompanying
table show s:
W AR LOAN SALES TO NON-BANK INVESTORS
FIFTH DISTRICT
Total Sales
($ mil.) % o f U.S.
Second ..........
Third ............
Fourth ..........
Fifth ..............
Sixth ............
Seventh ........

597
972
881
1,214
1,246
1,502

U

se of

212
355
364
516
481
592

6.44
6.60
6.86
8.12
8.18
6.82

385
617
517
698
765
910

3.78
4.55
4.53
4.89
4.86
5.16

B a n k L oans

Bank credit extended by Fifth District weekly reporting
banks for purchasing or carrying government securities
to customers other than brokers and dealers was consid­
erably smaller in the Seventh W ar Loan than in the sixth
or fifth loans. In contract with this performance, similar
loans extended by all weekly reporting member banks in
the United States during the Seventh W ar Loan were
substantially higher than during the sixth, and the largest
of any war loan to date.
The increases in loans by weekly reporting banks to
customers other than brokers and dealers for purchasing
or carrying government securities during the past four
war loans are shown below, for the United States and for
the Fifth District:
CHANGE IN LOANS TO “ OTHERS” FOR PURCHASING OR
CARRYING GOVERNMENT SECURITIES
by Weekly Reporting Member Banks
Fifth
District
W ar Loan
Period
United States
District % of U. S.
Fourth ...................
Fifth .......................
Sixth .......................
Seventh .................

1 /1 2 6/ 7 11/15 5/30 -

2/16
7/ 5
12/20
7/ 4

+ 605
+1,303
+1,186
+1,784

+ 10*
+89
+ 56**
+29

1.65
6.83
4.72
1.63

* January 12 - February 9
** November 15 - December 13.

The table above shows that only in the Fifth W ar Loan
was the credit extended for government security purchases
in excess o f the District’s proportion o f the Nation’s war
loan sales. In each of the other war loans enumerated the




W AR LOAN SALES MINUS BANK LOANS* EXTENDED BY
WEEKLY REPORTING MEMBER BANKS
United
States
Fifth

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

Fifth
District

16,125
19,336
20,435
24,529

871
1,125
1,190
1,473

Dist. %
o f U. S.
5.40
5.82
5.82
6.01 .

* Loans to customers other than brokers and dealers for purchasing or
carrying securities.

T

Individuals, etc. Corporat’ ns & Other
($ mil.) % of U.S.
($ mil.) % of U.S.

4.43
5.13
5.27
5.88
5.76
5.71

people o f the Fifth District did not use as large a pro­
portion o f bank loans in purchasing war loan securities
as was the case in the country as a whole.
It is apparent on analysis that the chief reason for the
reduction in the Fifth District's percentage o f United
States war loan sales in the sixth and seventh drives was
due to a smaller usage o f bank loans. If the amounts o f
bank loans extended during war loan drives for purchasing
or carrying government securities, as shown in the table
above, were deducted from war loan sales in the District
and in the nation, it will be seen that the District’s con­
tribution to the nation’s war loan sales would show a
steadily rising percentage in each successive drive except
from the fifth to the sixth, when the percentage held
constant.

ypes

of

S e c u r it i e s S old

The outstanding development o f the Seventh W ar Loan
was the large increase in the attractiveness o f the / 2(
1 fo
Treasury Bonds o f 1967-72. This was no doubt due to
the strong demand by insurance companies and large
investors which had held similar issues at an attractive
premium. These 2j^s are not available for commercial
bank investment until June 15, 1962, and, consequently,
the strong bank demand for government securities could
have had little or no effect on their increased purchase in
the Seventh W ar Loan Drive, as compared with any o f
the preceding war loan drives. The fact that the 2y2§
have held at a premium and the widespread feeling that
they might be withdrawn from future war loans were
sufficient inducements to cause the large sales in this Dis­
trict. In the seventh drive this issue totaled $270,597,000,
as compared with $65,014,000 in the sixth drive and with
the previous high record o f $133,289,000 in the third drive.
The 2J4% Treasury Bonds o f 1959-62 were likewise in
strong demand in this District in the Seventh W ar Loan
drive. These bonds are not available for bank investment
prior to June 15, 1952, or seven years away. Bank sup­
port for these bonds, therefore, could have had little o^
no effect on their sales. W hile some o f the easing in the
prices o f these bonds since the close o f the drive may
indicate sales by speculative holders, it is probable that
the great bulk o f the sales o f 2 ^ s was for legitimate in­
vestment. Whatever amounts o f the 2*4% and 2 y2°/o
bonds bought for speculative turnover, they can have no
direct influence in raising bank deposits. The sales o f
2% s in the District in the Seventh W ar Loan drive, o f
$404,577,000, were 123 per cent larger than sales o f a
similar issue in the Fourth W ar Loan drive, and were
within $17.8 million o f the sale o f 2s in the Sixth W ar
Loan drive. Sales o f the 2 % s in the seventh drive ac­

2

7

MONTHLY REVIEW
counted for 7.97 per cent o f all sales o f this issue in the
nation, as compared with 4.55 per cent o f the 2 )4 s o f the
fourth drive.
The 1^2% bonds of the seventh drive had no com ­
parable issues in previous drives, but these bonds were in
a little better demand in this District than the
notes
offered in the sixth drive, although not in quite as good
demand as similar notes in the fifth drive. The sales of
1 )4 % bonds in the Fifth District, however, were a larger
percentage of the United States total than were the
notes in either the sixth or fifth drives, despite the fact
that the use o f bank loans for purchasing or carrying gov­
ernment securities in the District was reduced during the
Seventh W ar Loan, as compared with the sixth, whereas
such loans in the same period in the United States rose
substantially. The 1 )4 % bonds are eligible for bank pur­
chase, and such speculative purchases as were made for
resale to banks were apparently done largely on a cash
basis in this District.
The sales of $260.1 million o f % % certificates o f in­
debtedness in the Fifth District, during the Seventh W ar
Loan drive, were smaller than in the Sixth or Fifth W ar
Loan drives. This was due to reduction in sales to in­
dividuals, savings banks, and State and local governments
not offset by increased sales to insurance companies and
to corporations and other investors. The reduction in
sales o f certificates to individuals ha? accompanied the
reduction in the use o f bank loans for purchasing or car­
rying securities in each o f the past two W ar Loans. The
reduction in sales of certificates to State and local gov­
ernments was due mainly to one State government’s de­
cision to hold the certificates purchased in previous war
loans, rather than to sell and subscribe to new certificates.
In the Fifth W ar Loan, when the use o f bank loans for
purchasing or carrying government securities was at its
highest level in this District, the sales of Y%% certificates
accounted for 7.09 per cent o f the United States total sales
o f these securities, compared with 6.33 per cent in the
Sixth W ar Loan and with 5.44 per cent in the Seventh
W ar Loan.
Fifth District sales of non-marketable securities in the
Seventh W ar Loan come to $438.6 million, and were the
largest o f any war loan to date by a considerable njargin.
Series E W ar Savings Bonds established a new high
record. Series F and G W ar Savings Bonds were $12
million higher than in the Sixth W ar Loan, and the second
highest war loan sales to date. Sales of Savings Notes,
Series C, continued the downward trend in evidence since
the Third W ar Loan.
The sale o f Series E W ar Savings Bonds in the Fifth
District during the Third through the Sixth W ar Loans
had shown a steadily rising percentage o f the United
States total, but in the Seventh W ar Loan the District’s
percentage was lowered. The District’s percentage of the
Nation’s sales o f Series F and G W ar Savings Bonds has
been mainly downward through the Seventh W ar Loan
drive, and the District’s percentage o f the Nation’s sales
o f Savings Notes, Series C, has declined steadily since the
Third W ar Loan.
The accompanying table shows the Fifth District sales
of government securities, by type, in the Seven W ar
Loan drives, together with percentages o f the United
States totals:




W AR LOAN SALES OF GOVERNMENT SECURITIES
TO NON-BANK INVESTORS
Fifth District
(million dollars)

First . . .
Second .
Third ..
Fourth .
Fifth ..
Sixth
Seventh.

Cert. Notes* Bonds** Bonds Tax & Svgs.
Savings Bonds
Notes
E F & G Total
2%
2y2%
7
/s%
1% %
59.4
60.7
46.1 20.2
296.7
40.1
70.2
596.7***
150.1
112.9
83.3
108.9
96.0 44.8
972.4
197.8
289.8
133.3
137.5
160.1 53.9
256.5
181.1
45.2
122.5
213.3 62.4
881.0
338.0
141.0
279.2
208.4 52.6 1,213.5
124.6
69.7
278.9
113.5
422.4
65.0
113.2
208.4 45.1 1,246.4
260.1
127.7
404.6
270.6
104.3
277.1 57.2 1,501.5
(Per Cent of United States Total)

First .. .
3.57
.. 4.84
Second
Third .. .. 4.80
Fourth . . . 5.09
Fifth . . . . 7.09
Sixth
.. 6.33
Seventh .. 5.44

7.24
7.32
7.56

4.00
4.01
5.51
5.44
5.34
6.09
7.97

2.47
2.89
3.53
2.36
3.08
2.40
3.82

4.57
5.04
5.54
5.49
4.84
4.66
3.85

7.18
6.52
6.48
6.69
6.87
7.27
6.97

6.94
6.72
6.49
6.09
6.43
6.28
5.77

4.34
4.43
5.13
5.27
5.88
5.76
5.71

* Seventh 1 ^ % bonds.
'
** First 1 % % ; Fourth 2^4%; Seventh 2*4%.
*** Includes unallocated amount of $690,000.

S a l e s C l a s s if ie d

by

B uyer

The principal changes in the amounts o f securities sold
in the Seventh W ar Loan, compared with the sixth, were
a notable increase in the percentage o f all sales made to
insurance companies, and about the same reduction in
those to corporations and other non-banking investors.
Fractional increases from the Sixth W ar Loan were
recorded in the percentages o f all Seventh W ar Loan
securities, taken by individuals and savings banks, but
these were largely offset by lower percentages taken by
dealers and brokers and State and local governments.
W AR LOAN SALES BY TYPE OF INVESTOR
Fifth District
(million dollars)
2nd
3rd
4th
5th
6th
7th
--- --- --- ------ ------ -----Individuals, etc....................
212.4
354.7
363.7
516.2
480.7
592.0
Savings banks ...................
41.7
74.1
46.6
45.0
68.3
87.2
Insurance companies ........
60.3
70.5
53.5
64.8
84.2
147.6
*
Dealers and brokers ........
24.3
18.4
15.2
2.9
4.7
Federal agencies, etc..........
4.0
6.6
6.5
19.7
.1
1.2
State and local govts..........
57.6
77.0
67.2
123.2
143.5
163.6
*
*
*
Bldg. & Savings & Loan . .
*
46.1
55.3
Corporations and other ..
220.8
365.2
325.1
429.4
---- ,-418.8 ,-451.7
--—
--------------- -------- ---596.8
972.4
881.0 1,213.5 1,246.4 1,501.5
Individuals, etc .................
Savings banks ...................
Insurance companies . . . .
Dealers and brokers ........
Federal agencies, etc..........
State and local govts...........
Bldg. & Savings & Loan .
Corporations and other ..
Total

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

35.6
7.0
10.1
*
.7
9.6
*
37.0

36.5
7.6
7.3
2.5
.7
7.9
*
37.5

----

----

100.0

100.0

(per cent o f total)
41.3
42.5
38.6
5.3
3.7
5.5
6.1
5.3
6.7
2.1
.4
1.3
.7
1.6
7.6
10.2
11.5
*
*
3.7
36.9
35.4
33.6

----

100.0

_
_

100.0

_
_

100.0

39.4
5.8
9.8
.2
.1
10.9
3.7
30.1

_
_

100.0

* Included with corporations and other.

Sales to individuals in the Seventh W ar Loan accounted
for 39.4 per cent o f the District’s war loan sales. Although
this was a higher percentage than the 38.6 per cent in the
Sixth W ar Loan, it was only a fraction above the average
of the Second to Seventh W ar Loans, inclusive. Sales
to corporations and other investors, including building and
savings and loan associations for comparability, however,
were a considerably lower percentage o f total sales in the
Seventh W ar Loan than in either the Sixth or the average
o f the Second to the Seventh, inclusive. The percentage
of the District’s Seventh W ar Loan sales, taken by cor­
porations and other investors, including building and loan

MONTHLY REVIEW

8

and savings and loan companies, was 33.8. A comparable
percentage in the Sixth W ar Loan was 37.3, and the aver­
age from the Second through the Seventh loans was 36.3
per cent.
C o n t r ib u t io n s

of t h e

S tates

Seventh W ar Loan sales in the Fifth District increased
$255 million over sales in the Sixth W ar Loan. O f this
increase Maryland, the District of Columbia, and North
Carolina accounted for more than 88 per cent. W est V ir­
ginia was the only State in which total Seventh W ar Loan
sales did not exceed those in the sixth. A ll other States
established new high records in the seventh loan. The
District o f Columbia accounted for the largest part o f the
Fifth District’s increase in war loan sales from the sixth
to the seventh. W ith the exception o f the Savings Notes,
Series C, all types o f security sales in the District o f
Columbia increased in the seventh drive, compared with
the sixth.
It is interesting to note that the District o f Columbia
was the only one, of the Fifth District major political sub­
divisions to show an increase in sales of % % certificates
from the sixth to the seventh loans, and that the only
increase of note in this period in the loans made for pur­
chasing or carrying government securities by the Fifth
District weekly reporting member banks occurred in the
District o f Columbia.
The increase in sales o f 2 y2% bonds in the Fifth Dis­
trict from the Sixth to the Seventh W ar Loans amounted
to $205.6 million, and accounted for 80 per cent o f the
total war loan increase. Maryland accounted for 30 per
cent of the aggregate increase, North Carolina for 24 per
cent; Virginia and the District o f Columbia each ac­
counted for 19 per cent, while the remaining 8 per cent
was contributed by W est Virginia and South Carolina.
Series E W ar Savings Bonds, which accounted for the
second largest part o f the increase in war loan sales in
the seventh drive, compared with the sixth, o f $68.7 mil­
lion, was more than two-thirds accounted for by Virginia,
the District o f Columbia, and Maryland. Virginia ac­
counted for 31 per cent o f the $68.7 million increase*
District o f Columbia 20 per cent; Maryland 17 per cent;
North Carolina 14 per cent; W est Virginia 11 per cent;
and South Carolina 7 per cent.
A ll o f the District's States showed increased sales of
Series F and G W ar Savings bonds in the Seventh W ar
Loan as compared with the sixth. The increase aggre­
gated $12.0 million, o f which Maryland accounted for
45 per cen t; North Carolina 22 per cen t; and the District
o f Columbia 18 per cent.
The remaining securities o f the Seventh drive, the 2j4s,
i y s, and Series C Savings Notes, which are compared
with the 2s;
notes and Series C Savings Notes of
the sixth drive were sold in smaller amounts in the Seventh
W ar Loan than in the sixth, in all States except the Dis­
trict o f Columbia. Sales o f \y2% bonds in North Caro­
lina, in the seventh drive, exceeded sales o f the 1/ 4 % n°tes
of the sixth drive by $15.6 million, but lower sales o f
certificates and 2*4s more than offset the gain. Sales o f
certificates, 1y2% bonds, and Series C Notes increased in
South Carolina, but these gains were more than offset by
a decline in the 2 % s compared with the 2s. Virginia’s

2




Seventh W ar Loan sales showed losses from the sixth in
all issues except the 2j^s, Series E and G bonds. The
reduction in the sales o f Series C Notes was substan­
tially the same total amount as the reduction for the entire
Fifth District, the gains.in some o f the other States halving
been largely offset by losses in the remaining States.
The accompanying table shows the changes in sales in
the Seventh W ar Loan, compared with the sixth, for
those issues in which all o f the States show increases and
the net change in the remainder o f the issues.
INCREASES IN SALES OF SECURITIES FROM
THE SIXTH TO THE SEVENTH W AR LOANS
(thousand dollars)
Series Series
Other
Net Increase
E
F & G Securities Amount
2%s
%
60,767
39.763
38,455
15,033
48,982
2,583

11,847
13,637
21,582
7,529
9,237
4,881

205,583

Maryland .................
District of Columbia
Virginia .................
West Virginia ........
North Carolina . . . .
South Carolina . . . .

68,713

5,408 —
77,432
590
2,145
36,702
92,247
1,066 — 33,372
27,731
136 — 27,585 — 4,887
2,603' — 4,748
56,074
685 — 1,627
6,522
12,043

— 31,220

255,119

18.6
65.3
11.2
— 4.3
22.6
8.2
20.5

The record o f the war loan sales by States is shown in
the following table. The first loan, or the V ictory Fund
drive, is not included because Series E W ar Savings
Bonds were not included in that drive.
W AR LOAN SALES TO NON-BANK INVESTORS
Fifth District
(million dollars)
Md.

D. C.

Va.

W. Va.

N. C.

S. C.

District

Second ............ 189.7
Third .............. 330.7
Fourth ...........280.2
Fifth ........... .. 421.8
Sixth ........... .. 416.7
Seventh *.___ _494.1

78.9
102.8
110.0
152.1
141.1
233.4

120.5
193.8
184.9
220.3
247.9
275.7

54.8
84.5
68.2
100.7
112.8
107.9

109.9
182.5
172.0
235.3
248.4
304.4

43.0
78.1
65.7
83.3
79.5
86.0

596.8
972.4
881.0
1,213.5
1,246.4
1,501.5

Q

uota

A

c c o m p l is h m e n t s

The war loan record o f the Fifth Federal Reserve Dis­
trict in the last four drives has exceeded the goals set up
by the Treasury by a larger percentage than for the
United States as a whole, except in two instances. These
two exceptions were the Series E W ar Savings Bond
sales relative to quotas in the Fourth W ar Loan drive and
the over-all individual sales relative to quota in the Sev­
enth W ar Loan drive.
The District's Seventh W ar Loan quota o f individuals,
partnerships and personal trust accounts was increased 48
per cent from what it was in the Sixth W ar Loan, whereas
this quota in the United States was increased but 40 per
cent. I f the Fifth District quota had been increased the
same as for the United States, sales relative to quota in
the District would have been a slightly higher percentage
than was shown for the nation.
Three o f the States o f the Fifth District failed to meet
their Series E bond quotas in , the Seventh W ar Loan.
But the over-quota sales o f Virginia and South Carolina
brought the total Fifth District sales tjp to the quota level.
These three States were Maryland, W est Virginia, and
North Carolina. This was the first time since Series E
Bond quotas were established that W est Virginia and
North Carolina have failed to meet their quotas, while
Maryland, despite a progressively lower percentage o f the
District’s Series E Bond quota, has failed in each o f the
past four drives to make its quota. Virginia’s Series E

MONTHLY REVIEW
Bond quota was raised 66 per cent in the seventh drive,
compared with the sixth, while the Fifth District’s quota
was raised 57 per cent in this period. Yet Virginia ex­
ceeded its quota in the seventh drive by 17 per cent, to
lead the District’s States in the Series E Bond accom#plishment.
In general, the Fifth District has exceeded its several
types o f quotas in the past four war loans by larger per­
centages than for the nation, but the District’s outstanding
performance has been in the degree to which its sales to
corporations and other investors has exceeded quotas in
comparison with the national performance. N o Fifth Dis­
trict State has failed in the past four drives to show n
higher percentage of sales to corporations and other in­
vestors relative to quotas than that shown by the United
States as a whole.

9

individuals, partnerships and personal trust accounts, and
in the percentage of quota attainment o f corporations
and other investors, all o f the District’s States except
one ranked high in the top half o f the nation’s States.
RANK AMONG THE STATES IN QUOTA ACHIEVEMENT
All Investors Individuals, etc. Series E Bonds Corp.& Other
5th 6th 7th
Md..............
D. C..........
Va...............
W. Va.
N. C..........
S. C..........

, ,.
.....
........
........

3
14
17
1
9
13

4
6
27 10
9 21
2 35
2
3
16 41

5th 6th 7th

5th 6th 7th

5th 6th 7th

2
40
22
9
21
23

49 49
17 25
5
12
28 34
37 14
8 12

11
3
3 26
14 11
1
7
5
6
10 21

13 45
21 20
9 12
1 46
2
9
10 23

48
23
5
37
35
17

5
15
21
7
2
38

SERIES "E“ B N SALES - SE E TH W R LO N
OD
VN
A
A
FIFTH

DISTRICT

BY COUNTIES

PERCENTAGE OF W AR LOAN QUOTAS ACHIEVED
All Investors

Dist.

Series E Bonds

Corp. & Other

5th

6th

7th

5th

6th

7th

5th

6th

7th

185
142
140
195
159
144

198
150
182
209
205
162

214
207
185
168
230
162

196
93
113
143
116
112

133
117
143
175
155
138

104
122
129
103
132
121

83
110
117
104
100
119

94
84
116 101
137 117
111 93
124 96
132 104

176
207
170
267
199
178

265
182
222
254
256
188

409
344
310
386
441
258

163

188

201

136

142

118

103

118

191

236

373

5th
Md. . .
D. C. .
Va. ..
W. Va.
N. C.
S. C.

Individuals, etc.

6th

R

7th

ank

of t h e

D

is t r ic t

100

S tates

Four of the States of the Fifth District lowered their
rank among the States o f the nation in the percentage
o f achievement o f the all-investor quota, while one State
and the District o f Columbia improved theirs in the
Seventh W ar Loan, compared with the sixth. Maryland
still maintains a high position among the States, but
placing sixth in the seventh drive was two ranks lower
than in the sixth loan. The District o f Columbia, which
placed 27th in the sixth drive, raised that rank to 10th in
the seventh drive. Virginia was in ninth place in the sixth
drive, but tied with Minnesota for 21st place in the seventh
drive. W est Virginia held the first and second positions,
respectively, in the fifth and sixth drives, but tied with
(California for 35th position in the seventh drive. South
Carolina, which placed thirteenth among the States o f
the nation in the fifth drive, and sixteenth in the sixth
drive, fell to forty-first place in the seventh drive. These
reduced ranks of the four Fifth District States, as was
indicated earlier in this paper, are probably an indication
that some States outside the Fifth District had done bet­
ter than these States, partly as a result o f the greater use
o f bank credit.
Aside from Virginia, the States o f the Fifth District
have not ranked high in the percentage of Series E Bond
quota attainment. Three of the States, namely Virginia,
District o f Columbia, and South Carolina, however, were
in the top half of the States o f the nation in the past
three war loan drives.
The ranks of the District’s States, excepting the Dis­
trict of Columbia, fell appreciably from the sixth drive
to the seventh in the percentage o f quota attainment of




PER CENT OF QUOTA SOLO.
UNDER 80.

FEDERAL RESERVE BANK OF RICHMOND.

The maps accompanying this article show the percen­
tage o f quotas within selected class ranges for total sales
and for Series E Bond sales for each county o f the Dis­
trict with independent cities included in the counties
where located.
There were 131 o f the 319 counties in the District and
the District o f Columbia which failed to make their
Series E Bond quotas in the Seventh W ar Loan. They
were located as follow s: Maryland 15; Virginia 9 ; W est
Virginia 29; North Carolina 62; and South Carolina 16.
There were 45 counties whose Series E Bond sales were
less than 80 per cent o f quota; 86 counties ranging from
80-99 per cent; 112 counties ranging from 100-119 per
cent; 55 counties ranging from 120-139 per cent; and 19
counties over 140 per cent.
Only 4 counties in the District failed to make their
Seventh W ar Loan all-investor quota; 108 counties had
total sales ranging from 100-149 per cent o f quota; 121

MONTHLY REVIEW

10

Continued from} page 1

counties ranged from 150-199 per cent; 57 counties
ranged from 200-249 per cent; and 27 counties had total
sales more than 250 per cent o f quota.
The map shows that the best percentages o f quota of
Series E Bonds had the greatest concentration in Tide­
water and Shenandoah Valley areas of Virginia, and that
the best percentages o f quota of total sales had the largest
concentration in the industrial areas of North Carolina.

o f this year. The miners have in the main stayed on their
jobs better in the past few years than have workers in
many other important industries. A considerable number
of the miners presently employed are over age. The
patriotic appeal to continue working 6 days a week has
dissipated and it should be expected that coal production
would continue in its moderate downward trend.
Building permits, though still at a relatively low level,
increased 43 percent from June to July on a seasonally
adjusted basis. July permits in the District were 121
percent higher than a year ago. Residential buildings are
in great demand in many areas o f the District, and except
in those areas where war housing temporarily met the
needs, it is likely that such building will go ahead as
rapidly as materials and men can be made available for
the task.
Loans made by the weekly reporting member banks to
customers other than brokers and dealers for purchasing
or carrying government securities rose $29 million from
May 30 to July 4 this year during the Seventh W ar Loan.
As of August 14 these loans had declined only 4 million,
which would seem to indicate that this loan expansion had
been largely made to investors who intend to pay off the
loans out o f income.
Commercial, industrial and agricultural loans o f the
weekly reporting banks o f this District have risen $8
million since their low point on July 4 and are the high­
est for this time o f year since 1942.
Holdings of government securities o f these banks
reached a high point o f $1,734 millions in the 3rd week
following the close o f the Seventh W ar Loan. Holdings
of government securities were at the year’s low point on
May 2, from which date holdings expanded $208 million
to the peak on August 1. Government security holdings
totaled $1,708 million on August 14, which was $26 mil­
lion below the August 1 peak, but $246 million higher than
on August 16, 1944. In this same period, holdings of
government bonds increased $248 million.

TOTAL SA LES- SEVENTH WAR LOAN
FIFTH &STRICT BY COUNTIES

FEDERAL RESERVE BANK OF RICHMOND.

BUSINESS INDEXES- -F IF T H
Average Daily 1935-39 = 100

FEDERAL RESERVE DISTRICT
Seasonally Adjusted
June
1945

Bituminous Coal Production* .................................
Building Contracts Awarded ....................................
Building Permits Issued ............................................
Cigarette Production ..................................................
Cotton Consumption* ..................................................
Department Store Sales..............................................
Department Store Stocks .........................................
Electric Power Production ...............
Employment— Mfg. Industries* . ..
Furniture Orders .................................
Furniture Shipments ......................
Furniture Unfilled Orders ............................
Retail Furniture Sales ..................... ....................
Life Insurance Sales ...................................................
Wholesale Trade— Four Lines....................................
Wholesale Trade— Drugs ........................................... .
Wholesale Trade— Dry Goods .................................
Wholesale Trade— Groceries ...................... :............. .
1: Wholesale Trade— Hardware ...................................

1* Not seasonally adjusted.



May
1945

April
1945

June
1944

257
142

225
137
94
49
155
141

210

210r

210

191
228
132
150
190
664
139
156
180
214
177
193
84

178
217
134
248
168
839
151
154
176
227
176
185
96

233
149
96
52
153
143
208 r
186
219
140
287
193
561
144
133
180
225
160
191

102

60
174
139
235
208
240
131
232
220

577
170
156
173
218
211

179
87

139
169
74
146
140

100

% Change
June 1945 from
May ’45
June ’44
+
+

14
4
4- 9
+ 22
+ 12
— 1
+ 12
+ 9
+
5
— 1
+ 55
+ 16
— 13
+ 22
0

— 4
+ 2
+ 19
— 7
+ 4

+
—
+
+
+
—
+
+
+
—
—
+
4"
+
+
—
—
+
—
—

10

5
6

Id
14
3
13
12
10
6

19
14
-3
18
17
4
3
32
6

13

11

MONTHLY REVIEW

FEDERAL RESERVE BANK OF RICHMOND

DEBITS TO INDIVIDUAL ACCOUNTS

(All Figures' in Thousands)
Change in Amt. from
August 15
7-18-45
8-16-44
1945

ITEMS

Total Gold Reserves ...................
Other Reserves ...........................
Total Reserves .........................
Bills Discounted ......................... Industrial Advances .................
Gov. Securities, Total ...............
Bonds ........................................
Notes . ......................................
Certificates ...............................
Bills ..........................................
Total Bills and Securities . . . .
Uncollected Items ...................
Other Assets ............... ................
Total Assets .............................

$ 851,515
12,914
864,429
16,527
81
1,486,404
69,904
106,677
384,535
885,288
1,463,012
144,106
13,183
$2,484,730

Fed Res. Notes in Cir............... .
Deposits, Total .............................
Members’ Reserves ..................
U. S. Treas. Gen A cct.............
Foreign .......................................
Other Deposits .........................
Def. Availability Items ............
Other Liabilities .......................
Capital Accounts ....................... .
Total Liabilities <.................
■

$1,596,525
738,279
663,871
25,734
44,136
4,538
123,798
529
25,599
$2,484,730

— 203,427
— 1,366
— 204,793
+ 14,268
—
93
+ 660,844
— 15,396
+ 33,585
+ 161,671
+ 480,984
+ 675,019
+ 16,259
— 1,432
+ 485,053

+ 26,399
+
535
-f 26,934
+ 13,411
—
4
+ 23,513

2

+

+
820
+ 5,011
+ 17,680
+ 36,920
+ 10,390
—
332
+ 73,912

+ 331,775
+ 132,589
+ 138,797
+
5,018
— 12,131
+
905
+ 15,833
+
132
+
4,724
+ 485,053

+ 40,715
+ 19,581
+ 32,697
— 8,231
— 3,735
— 1,150
+ 13,047

+

66

+
503
+ 73,912

41 REPORTING MEMBER BANKS— 5th DISTRICT
(All Figures in Thousands)
Change in Amt. from
August 15
8-16-44
7-18-45
1945

ITEMS

Total Loans ...................................
Bus. and Agri. Loans ..........
Real Estate Loans .................
All Other Loans .....................
Total Security Holdings ............
U. S. Treasury Bills ..............
U. S. Treasury Certificates ..
U. S. Treasury Notes ............
U. S. Gov. Bonds ...................
Obligations Gov. Guaranteed .
Other Bonds, Stocks and Sec..
Cash Items in Process of Col...
Due from Banks .........................
Currency and Coin ...................
Reserve with F. R. Bank ........
Other Assets ...............................
Total Assets
...................

$ 320,755
127,763
48,166
144,826
1,774,616
81,250
336,530
299,192
991,188
130
66,326
98,392
162,801
38.294
331,529
70,031
$2,796,418

+ 8,505
+ 9,012
+ 1,858
— 2,365
— 18,069
— 21,643
— 31,085
+ 11,253
+ 17,014
0
+ 6,392
+ 2,877
— 11,708
+
728
+ 15,821
— 1,279
— 3,125

+
8,991
+ 11,861
— 2,715
— 5,155
+ 257,144
— 33,909
+
3,157
+ 44,198
+ 248,485
— 16,163
+ 11,376
+
7,753
— 9,328
+
4,329
+ 58,798
+
6,097
+ 328,784

Total Demand Deposits ..............
Deposits of Individuals ..........
Deposits of U. S. Gov.............
Deposits of State & Local 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 ...............

$2,216,947
1,236,515
462,237
76,518
418,865
22,812
339,532
325,911
13,621
16,800
97,322
125,817
$2,796,418

— 16,192
+ 32,853
— 61,294
—
320
+ 11,119
+ 1,450
+ 8,006
+ 8,007
—
1
+ 11,084
— 6,466
+
443
— 3,125

+ 213,730
+ 153,034
+
1,651
— 8,417
+ 60,144
+
7,318
+ 65,148
+ 65,232
—
84
+ 16,800
+ 22,549
+ 10,557
+ 328,784

* Net figures, reciprocal balances being eliminated.

DEPOSITS IN MUTUAL SAVINGS BANKS
8 Baltimore Banks
Total Deposits

July 31, 1945
$323,972,657

June 30, 1945
$319,362,160

July SI, 1944
$278,658,754




So. Carolina
133,618
160,507
146,688
1,119,083
1,165,496

Virginia
16,525
17,756
16,467
132,194
132,749

Dist. of Columbia
Washington . . . .
Maryland
Baltimore ..............
Cumberland ..........
Frederick ...............
Hagerstown ..........
North Carolina
Asheville ................
Charlotte ...............
Durham .................
Greensboro ............
Kinston ............... .
Raleigh .................
Wilmington ..........
Wilson ...................
Winston-Salem . . . .
South Carolina
Charleston ..............
Columbia ................
Greenville ..............
Spartanburg ..........
Virginia
Charlottesville . . . .
Danville ................
Lynchburg ............
Newport News . . .
Norfolk .................
Portsmouth ............
Richmond .............
Roanoke .................
West Virginia
Bluefield .................
Charleston ..............
Clarksburg ............
Huntington ............
Parkersburg ..........

% chg. from

District Totals

% chg. from
July 1944

7 Months
* 1945

$ 568,646

+ 17

$ 3,918,217

+ 14

7 Mos. 1944

756,881
15,739
11,516
17,087

—
+
—
+

1
11
7
8

5,653,298
102,569
84,693
120,087

+ 5
+ 13
+ 1
0

28,601
127,516
69,771
38,935
6,667
57,460
32,889
9,326
63,064

+ 15
+ 12
— 5
+ 27
+ 6
+ 11
— 7
+ 26
— 7

196,333
959,691
449,431
288,368
52,620
408,900
252,560
69,146
454,756

+ 19
+ 10
+ 4
+ 20
+ 17
+ 4
— 3
+ 17
+ 4

+
—
+
+

2
9
9
14

293,603
376,078
285,319
163,364

+ 6
+ 7
+ 10
+ 11

20,418
16,114
23,255
22,101
116,498
16,366
317,600
42,922

+ 28
+ 14
+ 13
— 7
+ 1
0
+ 8*
+ 8

142,161
118,611
156,948
168,948
863,374
118,775
2,310,894
313,539

+ 39
+ 22
+ 6
— 8
+ 1
+ 6
+ 5
+ 10

22,645
90,369
17,911
38,589
18,703

— 3
+ 2
+ 12
+ 18
+ 15

37,854
53,541
39,356
23,792

$2,722,042

+

172,047
624,818
120,041
269,117
136,756

6
7
14
29
23

$19,645,062

6

+
+
+
+
+
+

9

COMMERCIAL FAILURES
PERIODS
July
1945. .
June
1945..
July
1944. .
7 Months 1945. .
7 Months 1944 . .

Number of Failures
District
U. S.
2
: 72
2
61
1
91
14
526
11
828

Total Liabilities
District
U. S.
$
9,000
$ 3,659,000
3,198,000
104,000
3,559,000
365,000
$21,365,000
$1,384,000
695,000
17,910,000

Source: Dun & Bradstreet.

COTTON CONSUMPTION AND ON HAND— BALES
July
July
Aug. 1 to July 31
1944
1945
1944
1945
Fifth District States:
Cotton consumed ........
330,830
354,ij
54 4,732,619 4,930,174
Cotton Growing States:
Cotton consumed ................
600,032
644,578 8,461,799 8,739,217
Cotton on hand July 31 in
consuming establishments 1,649,360 1.578,075
storage and compresses . 8,270,454 8,113,045
United States:
Cotton consumed ...............
673,087
723,102 9,575,829 9,943.370
Cotton on hand July 31 in
consuming establishments 1,962,602 1,873,537
storage and compresses . 8,372,539 8,285,432
Spindles Active, U. S............. 22,030,280 22,291,072

RAYON YARN DATA

COTTON CONSUMPTION—FIFTH DISTRICT
In Bales
*
MONTHS
No. Carolina
July
1945.
180,687
June
1945.
209,945
July
1944. ,
190,904
7 Months 1945. . 1,478,406
7 Months 1944. . 1,529,511

(000 omitted)
July
1945

July 1945
District
330,830
388,208
954,054
2,729,683
2,827,756

June 1945

July 1944

Rayon Yarn Shipments, Lbs. . . .
Staple Fiber Shipments, Lbs. . . .

47.900.000
13.600.000

50.600.000
13.400.000

41.300.000
13.600.000

Rayon Yarn Stocks, Lbs.............
Staple Fiber Stocks, Lbs.............

6,000,000
3,700,000

6,000,000
3,000,000

8,800,000
3,000,000

Source: Rayon Organon.

MONTHLY REVIEW

12

BUILDING PERMIT FIGURES
Fifth Federal Reserve District
July 1945

RETAIL FURNITURE SALES

Total Valuation
July 1945
July 1944
Maryland
Baltimore .......................
Cumberland ...................
Frederick ........... .........
Hagerstown .......'...........
Salisbury .......................
Virginia
Danville ........................
Lynchburg .....................
Norfolk .......................
Petersburg .....................
Portsmouth .................
Richmond .....................
Roanoke .........................
West Virginia
Charleston .....................
Clarksburg .....................
Huntington ..........
North Carolina
Asheville .........................
Charlotte .......................
Durham .........................
Greensboro .....................
High Point ...................
Raleigh .........................
Rocky Mount ...............
Salisbury .......................
Winston-Salem .............
South Carolina
Charleston ...................
Columbia .......................
Greenville ..................... .
Spartanburg .................
District of Columbia
Washington .................
District T otals..............
7 Months .........................

$

536,070
27.490
14.800
16.490
51,923

$

636,782
16,973
5,250
6,380
25,861

$

64,655
64,314
1,054,030
25.800
61,610
336,917
144,589

$

20,029
26,275
73,280
3,475
16,447
180,662
26,459

$

102,666

$

43,892
' 2,255
9,885

$

5,876
143,600
24,858
8,805
35,015
14,050
950
7,580
236,501

12,622
232,676
$

46,056
257,317
99,739
170,515
35,371
253,180
8,000

37,275
182,461
$

$

40,631
68,300
35,780
33,135

29,814
18,745
5,975
72,395

$ 1,137,020
$ 2,835,089
$16,346,649

$ 2,271,375
$ 6,285,787
$30,939,818

WHOLESALE TRADE, 236 FIRMS
Net Sales
July 1945
compared with
June
July
1944
1944

LINES
Auto Supplies (12)* . . . . , .
Drugs & Sundries (12)* . .
Dry Goods (6)* ............
Electrical Goods (11)* ....
Groceries (81)* ............. ..
Hardware (13)* ............ ••
Industrial Supplies (5>* . .
Paper & Products (7)* . ..
Tobacco & Products (12) *.
Miscellaneous (77)*
.. .
District Average (236) *.

+ 30
+ 8
+ 8
+ 1
+ 1
— 3
+ 5
+ 1
— 5
+ 2

Stock
Ratio July
July 31, 1945 collections
compared with to accounts
July 31 June 30 outstand’g
1944
1945
July 1

— 7
+ 5
0
— 7
— 1
— 7
— 5
— 10
— 1
— 7
— 3

+ 16
+ 7
— 33
+ 19
— 21
— 4
— 1

—
—
—
+
—
—

2
1

+ ‘3
— 19
— 10

+ 12
— 5
— 2

4

2
8
1
0

116
122
95
98
158
100
101
99
163
118
121

REGIONS
West Virginia .. .
Virginia .............
Maryland ............
Fifth District .
United States .
% in District ..




DEPARTMENT STORE TRADE
District
Richmond
Baltimore
Washington
Other Cities
Percentage change in July 1945 sales, compared with sales in July 1944
+ 23
+16
+16
+21
+17
Percentage change in 7 mos. sales 1945, cpmpared with 7 mos. in 1944
+ 15
+11
+11
+17
+12
Pctg. change in stocks on July 31, 1945, compared with July 31, 1944
+ 10
+ 18
+12
+ 4
+13
Pctg. change in outstanding orders July 31, 1945 from July 31, 1944
+ 16
+19
+14
+ 4
+16
Pctg. change in receivables July 31, 1945 from those on July 31, 1944
+ 22
+17
+ 3
+12
+11
Percentage of current receivables as of July 1 collected in July:
52
57
53
55
54
Percentage of instalment receivables as of July 1 collected in July:
29
28
25
29
27
Maryland
Dist. of Col. Virginia
W. Va. No. Caro.
So. Caro.
Percentage change in July 1945 salesfrom July 1944 sales, by States:
+ 17
+16
+15
+24
+16
+13
Percentage change in 7 months’ sales 1945 from 7 months’ sales 1944:
+ 11
+11
+13
+20
+14
+10

CONSTRUCTION CONTRACTS AWARDED
c chg. from
/c

Maryland ........
Dist. of Columbia . .
Virginia .......... ___
West Virginia ___
North Carolina
South Carolina ___

June 1945
$ 7,385,000
2,461,000
6,624,000
2,260,000
9,265,000
1,766,000

June 1944
+
5
+
8
— 27
— 41
+ 168
— 14

$29,761,000

+

7

% chg. from
6 Mos. 1945 6 Mos. 1944
$ 41,615,000
+ 1
+ 34
18,643,000
— 9
59,043,000
— 21
9,566,000
— 6
27,087,000
— 45
7,982,000

$163,936,000

— 6

Source: F. W. Dodge Corporation.

SOFT COAL PRODUCTION IN THOUSANDS OF TONS
July
%
1944 Change
13,233
— 6
— 10
1,527
163
— 4
14,923
— 6
48,986
— 3
30.5

* Number of reporting stores.

Fifth District . . .

Source: Department o f Commerce.
* Number of reporting firms.

July
1945
12,463
1,380
157
14,000
47,460
29.5

Percentage Changes in July and 7 Mos. 1945
Compared with
Compared with
STATES
July 1944
7 Mos. 1944
Maryland (5)* .........................
+ 30
+ 15
District of Columbia (5)* . . . .
+ 19
— 2
Virginia (23)* .........................
+ 14
+ 13
West Virginia (10)* ...............
+ 29
+ 15
North Carolina (20)* ..............
+ 18
+ 11
South Carolina (14)* ..............
— 11
+ 4
Fifth District (77)* ............
+ 17
+ 11
INDIVIDUAL CITIES
Baltimore, Md. (5)* ...............
+ 30
+ 15
Washington, D. C. ( 5 ) * ..........
+ 19
— 2
Lynchburg, Va. (3)* ..............
+ 17
+ 19
Richmond, Va. (7)* ................
+ 16
+ 21
Charleston, W. Va. (3)* ........
+ 22
+ 44
Charlotte, N. C. (5)* ..............
+ 12
+ 8
Columbia, S. C. (4)* .|............
— 15
0

7 Mos.
1945
92,072
10,799
1,062
103,933
345,015
30.1

7 Mos.
%
1944 Change
96,944
— 5
— 9
11,841
— 12
1,206
— 6
109,991
— 6
366,937
30.0

TOBACCO MANUFACTURING
July
1945
Smoking and chewing to­
bacco (Thousands of lbs.)
Cigarettes (Thousands) . . . .
Cigars (Thousands) ............
Snuff (Thousands of lbs.) ..

21,291
21,814,734
350,756
3,191

% Change
from
July 1944
+ 13

+ 8

0

+ 25

7 Mos.
1945

157,709
139,925,038
2,741,478
25,977

% Change
from
7 Mos.’ 44

+ 20

+ 1
+ 3
+ 7

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