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REVIEW
FEDERAL RESERVE BANK OF RICHMOND
R I C H M O N D 1 3, V I R G I N I A

A U G U S T 31, 1 9 4 9

Business Conditions
U SIN ESS activity in the Fifth Federal Reserve Dis­
trict reached a low for the year in July, but if one is to
judge by the evidences of improved business sentiment,
the outlook for the remainder of the year lends itself
to considerably more optimism. A quick return to the
high production levels of 1948 does not appear to be in
the offing, but there have been healthy gains in some in­
dustries and a leveling off or further curtailment in the
rest. It may well be that the 4
‘back of the recession” in
the Fifth District has been “ broken” and that consider­
able recovery is in prospect for the fall months.

B

Textiles in the Lead Again
Textile industries had been the bellwether in the na­
tionwide recession; they are again moving upward and
may prove to be the bellwether in the recovery. This can
be stated with emphasis regarding the Fifth Federal Re­
serve District, for despite the fact that the textile indus­
tries are located in Southside Virginia and the Carolinas
they account for nearly a third of all manufacturing in
the District.
Cotton consumption and spindle hours run in that in­
dustry had shown signs of stabilizing in May and June,
and had it not been for the expanded vacation shutdowns
in July, which reduced cotton usage by 22 per cent and
spindle hours 24 per cent from a year ago, some recovery
might have been apparent in that month.
Late in July it became apparent that most of the fluff
in the textile industry’s price structure had been washed
out, and buyers all along the line re-entered the market
to purchase goods and yarns. Buying has been sub­
stantial in a broad list o f products, and forward cover­
age, which had been mainly absent for months, has ex­
tended to the year-end. The results of this new business
have been an expanding work week in many mills and
the recalling of some previously laid-off employees. It
appears that the August rate o f operations in cotton tex­
tiles will be back to the levels established early this year.
Operations in the rayon fabrics industry have also
improved, and this has expanded the deliveries of rayon
yarn from the mills. In fact, with widespread vacation
shutdowns in the consuming trades in July, rayon deliv­
eries in that month rose 10.5 per cent over those in June.
Stocks of rayon yarn at the mills are still high by recent
comparison and may cause some lag in production.
Hosiery production is likely to be higher in the last

half of 1949 than in the first half. Some improvement


RETAIL FURNITURE STORE INDEXES
FIFTH FEDERAL RESERVE DISTRICT

had been shown in the seamless end of the business in
June when the man-hours of operation in North Caro­
lina mills rose 3.1 per cent over May. There have been a
few price increases of branded products in the fullfashioned line and the outlook for the industry as a
whole is brighter.
Furniture Manufacturing Improves
The level of operations in the southern furniture in­
dustry in June was down nearly to prewar proportions,
and some further downward adjustment when July fig­
ures become available would not be unexpected owing
to vacation shutdowns. However, new business late in
July and thus far in August appears to be accumulating
to the point where some improvement in operations in
the next few months seem probable. This improvement
finds its reflection in a higher level of purchases of hard­
wood by the furniture factories and a stronger price tone
which has been injected into this market.
The chart on this page indicates the considerable
strength shown in sales of furniture at the retail level in
the Fifth District, together with a liquidation of inven­
tories at the same source. Recovery in retail furniture
sales in July was due wholly to an increase in credit
sales. It is obvious that the collection period of receiv­
ables has been extended considerably. Nevertheless, the
demand at retail is holding at a good level and should find
its reflection in a high level of manufacturing operations.
Department store sales on a seasonally adjusted basis
rose 5 per cent from June to July to a level 1 per cent

FEDERAL RESERVE BANK OF RICHMOND

situation has been reversing itself in August. Relative
to a year ago, July sales in most wholesale lines show
substantial reductions.

above July, 1948. Department store inventories at the
same time declined 3 per cent seasonally adjusted from
June to July to a level 7 per cent below July, 1948. Our
seasonally adjusted department store index shows a low
point this year in January; since that time the trade level
has in the main been in a rising trend. In fact, the July
figure is approaching the peak established in the fall of
1948.
Even though year to year changes in figures in numer­
ous departments have been for the past several months
showing reductions from a year ago, it is difficult to find
in the seasonally adjusted figures any semblance of re­
cession in most of these departments. Large ticket items,
such as major household appliances, floor coverings, as
well as piece goods, are at a level considerably below
their seasonally adjusted peaks, but most soft goods de­
partments are either showing a flat trend or a rising one.
The trend of inventories in most departments is either
flat or declining.
With the exception of a small gain in wholesale hard­
ware sales, all lines of wholesale trade deteriorated fur­
ther in July. There is some indication, however, that the

Bituminous Coal Down
In the first half of 1949 bituminous coal output in the
Fifth District declined 3.7 per cent from the same period
a year ago. The decline in United States coal output in
the same period was 10.7 per cent. This better-thannational performance in the Fifth District coal industry
had been going on for some years prior to the war. It is
apparent that the trend has been resumed since coal has
again come in supply.
The three-day work week adopted by the United Mine
Workers, however, may have the effect of preventing the
Fifth District coal output from continuing a better-thannational showing. At the current rate of consumption,
coal stocks are being reduced about 10 million tons a
month. It would seem that, by November, the mine
workers might find it expedient to permit the mines to
run at full time. The price of bituminous coal, which
had been declining since spring, leveled off around midContinued on page 6

BUSINESS INDEXES—FIFTH FEDERAL RESERVE DISTRICT
AVERAGE DAILY, 1935-1939 = 100—SEASONALLY ADJUSTED
% Change— Latest Month
July
1949
Automobile Registration1 ................................ ................
Bituminous Coal Production ..... .....................
Building Contracts Awarded, Total .............
Commercial Construction Contracts .........
Manufacturing Construction .......................
Public Works and Utilities ........................
Residential Construction Contracts .........
Apartments and Hotels ............................
One and Two Family Houses .....................
Building Permits Issued ..................................
Business Failures — No...................................
Cigarette Production ........................................
Cotton Consumption ..........................................
Cotton Spindle Hours ......................................
Department Store Sales3 ................................
Department Store Stocks3 ..............................
Electric Power Production ............................
Employment — Mfg. Industries1 ...................
Furniture Mfrs.: Orders3 ............................ Furniture M frs.: Shipments3 ......................
Furniture Mfrs.: Unfilled Orders3 ...............
Furniture — Retail: 3 4
Net Sales .......................-................................Cash ...............................................................
Credit ............................................................
Receivables ......................................................
Collections .........................—...........................
Inventories ....................................................
Life Insurance Sales ........................................
Wholesale Trade:
Automotie Supplies2 ............................ .......
Drugs ...............................................................
Dry Goods ........................................................
Electrical Goods2 ..........................................
Groceries ........................................ .................
Hardware ........................................................
Industrial Supplies2 ...................................... .................
Paper and Its Products2 ..............................
Tobacco and Its Products2 ........................
1 Not seasonally adjusted.
2 1938-41 = 100.
3 Revised Series—back figures available on request.
4 1941
http://fraser.stlouisfed.org/ = 100.

Federal Reserve Bank of St. Louis

June
1949

May
1949

July

180
320
121r
334r
266
138
303
440r
1145
285
479
69
248r
115
119
311
311
250
125r
127
162
202

197
328
181
287
573
133
252
314
334
312
342
59
247
111
115
315
303
253
125
175
202
252

132
329
165
347
414
453
259
404
159
431
323
35
223
131
125
324
325
260
133
576
250
733

205
233
178
113
159
132
239

189
260
163
111
166
134
242

209
265
183
108
170
140
253

371
264
104
68
260
125
219
116
78

380
270
128
73
259
122
296
135
82

344
266
166
90
246
139
248
129
85

___
316
90
344
294
259
345
350
417
299
396
112
21 lp
102
100
326
302

.......

Prev. Mo.
—

9
1
26
3
11
88
14
20
64
5
17
62
15
11
16
5
3
1
0
27
20
20

+ 71
— 4
— 45
— 1
— 29
— 43
+ 33
— 13
+ 162
— 31
+ 23
+220
— 5
— 22
— 20
+
1
— 7
— 2
— 7
— 27
— 35
— 57

211
287
177
101
169
151
263

+ 8
— 10
+ 9
4- 2
— 4
—
1
—
1

— 3
— 19
+
1
+ 12
— 6
— 13
— 9

364
270
189
93
276
159
342
146
98

— 2
— 2
— 19
— 7
0
+ 2
— 26
— 14
— 5

+
—
—
—
—
—
—
—
—

—

—
+
+
+
+
—
—
“I
—
+
—
—
—
+
—
—
—
—
—

2'
2
45
27
6
21
36
21
20

AUGUST 1949

MONTHLY REVIEW

The Fifth District Export Outlook
The current and continuing British crisis has high­
lighted the Fifth District's trade with the United K ing­
dom and raised some interesting questions as to its fu ­
ture prospects. Specifically, the recent austerity pro­
gram presented in mid-July by the British Government
and calling for a 25 per cent overall cut in dollar imports
for the current fiscal year, points up this question o f the
immediate export outlook for some o f the District’s
industries. In view o f the wide interest in the problem
throughout the Fifth District and its overall importance
as reflected in the American-British-Canadian parley to
be held in September, it is here proposed to analyze
briefly the current sterling-dollar crisis and the possible
impact on this District o f any resultant curtailments in
exports.
It should be emphasized that this appraisal is highly
tentative since the entire British situation is subject to
review, both at the special American-British-Canadian
conference and at the annual meeting o f the Boards of
Governors o f the W orld Bank and the International
Monetary Fund which will follow the three-nation con­
ference. Similarly, it should be emphasized that the
British situation— although important— should not ob­
scure the progress made in 1948 and thus far in 1949
under the European Recovery Program. Finally, it
should be noted that one of the most important factors
contributing to the British crisis is the American reces­
sion, and any appraisal is subject to the uncertainty o f
the domestic outlook.

C H ART I

UNITED STATES TRADE WITH THE UNITED KINGDOM
JANUARY - JUNE,

1948 and 1949

(M IL L IO N S OF D O L L A R S )

JANUARY

FEBRUARY

MARCH

available data indicate that in the United Kingdom and
other key countries o f Western Europe (excluding
Western Germany) production was running approxi­
mately 30 per cent above the prewar level. Despite these
increases in domestic production and in exports, the
Marshall Plan countries have been able to finance by
this method only about 50 per cent o f their needed im­
ports o f raw materials and other goods. And even as­
suming that the production and export targets proposed
in the O E E C programs are achieved, the O E E C esti­
mates that this export-import gap with the United States
Summary of British Situation
(which constitutes the crux of the problem) will not be
Tentative appraisal of the effect of the current
sterling-dollar crisis on the Fifth District export situa­ closed by the scheduled end o f the E C A aid program
tion involves some description o f certain features o f the in 1952.
2.
The United Kingdom's imbalance in exports and
present British position.
1.
The British problem is fundamentally the same as imports with the dollar area reduced her gold and dol­
the major problem confronting Western Europe gen­ lar reserves (which constitute the reserves of the entire
erally, regardless o f whether that problem is termed sterling area) to $1.6 billion by the end o f June. The
“ British Economic Survey o f 1949” — the British Gov­
“ dollar shortage” or “ external deficit in the balance of
payments.” Simply stated, the basic causal factor is ernment’s economic blueprint— estimated that the net
that Britain, as well as Western Europe, imports more deficit would amount to £195 million in the first half o f
1949; but, in fact, it amounted to £239 million. In other
from the United States than it exports to the United
States and is not able to earn the dollars necessary to words, there was an unexpected increase in the net deficit
make up this difference. In the prewar period, earn­ and a resultant reduction o f approximate $160 million
ings from investments abroad, shipping and insurance in gold and dollar reserves o f the United Kingdom in
earnings, and other “ invisibles” enabled Britain and the first half of 1949. A s a result, the British monetary
Western Europe to close this export-import gap with reserves were reduced below the $2 billion mark, which
the United States (though Britain did have a small gap was previously considered the margin o f safety.

in the late Thirties). In the postwar period, these
sources of income have been drastically reduced or elim­
inated and are not available in adequate quantity to
close the gap.
In 1948, Britain and other Marshall Plan countries
increased their production markedly over the 1947 level
and (excluding Western Germany) registered an in­
crease over the prewar level. In the first half o f 1949,
industrial production continued to increase; and latest



Current data clearly reveal the part that the trade
balance has played in this sharp deterioration in the
British reserve position. Sharp drops in exports to the
United States in the second quarter o f 1949, both from
the United Kingdom and other sterling area countries,
were a major factor in the decline in dollar earnings of
the entire sterling area. The adverse shift in the exportimport balance o f the United Kingdom with the United
States is indicated in Chart I.
3

FEDERAL RESERVE BANK OF RICHMOND

3. In response to the accelerated drain on the gold
and dollar reserves o f the sterling area, the British G ov­
ernment has taken several official steps, nam ely:
a.

b.

On July 6, it was announced that instructions had
been given (prior to the middle o f June) to all
purchasing departments o f the British Govern­
ment to postpone new dollar purchases to the
maximum extent practicable until September.

propriations Committee in mid-June, E C A Administra­
tor Holfman noted that a $500 million cut in E C A aid
would “ in all probability"’ substantially reduce exports
o f certain commodities to the participating* countries.
Individual reductions specified in his testimony which
could affect the Fifth District include the follow in g:
Tobacco: A reduction o f 73 million pounds, estimated
at $40 million.
C otton:

On July 14, Sir Stafford Cripps announced that
there would be a 25 per cent overall cut in dollar
imports, amounting to $400 million, for the cur­
rent fiscal year.

c. On July 18, the Finance Ministers o f the seven
Commonwealth Nations which are members of
the sterling area announced that they similarly
would attempt to effect an overall cut o f 25 per
cent in their dollar imports.
d. A t the end o f July, the British presented to the
O E E C a revised estimate o f the sterling area's
dollar deficit for 1949-50. Britain’s estimated
dollar deficit for 1949-50, originally calculated at
$940 million, has been revised upward— first to
$1,114 million, and then to $1,518 million.

A reduction o f 142 million pounds, esti­
mated at $50 million.

Lum ber: A reduction estimated at $15 million.
Until the probable cut in E C A appropriations is ac­
tually translated into the O E E C programs (now in the
formulative stages for fiscal year 1949-50), there can be
no final appraisal o f the effect o f either the British crisis
or the reduction in E C A aid. But the current declines in
exports o f commodities most important in the Fifth Dis­
trict’s export trade are shown in Chart II, comparing the
exports o f selected commodities for the first five months
o f 1949 with those o f the same period last year.

4. Alternative long-run solutions necessarily involve
(a ) an increased level o f imports to the United States
from Britain and other countries and (b ) increased
capital flow from this country to Britain and the outside
world. Although the extension o f the General A gree­
ments on Tariff and Trade at Annecy may continue the
move toward lower trade barriers on imports to the
United States, and although some outward capital flow
may result from the Point Four program and the invest­
ment guaranties through the Export-Im port Bank, it is
clear that these are long-range solutions not likely to
solve the immediate problem.
Measures (either long-run or short-run) that may be
considered at the September conference are not matters
o f public knowledge. There have been discussions in the
press of such measures as devaluation o f the pound, in­
creasing the dollar price of gold (in other words, further
devaluation o f the dollar), establishing a series o f com­
modity agreements, and even the “ economic union o f the
United States and Britain.” 1

Immediate Effect on Fifth District Export Outlook
From the preceding brief summary, it is obvious that
it is very difficult to obtain any very precise idea o f the
effects of current international developments, and spe­
cifically o f the British situation, on the outlook for ex­
ports o f this District’s industries. Furthermore, in terms
o f specific commodities, it should be noted that the sched­
uled cut in the E C A appropriation for 1949-50 could
affect the immediate export outlook for Fifth District
commodities to a greater extent than the scheduled cut
in British imports. In testifying before the Senate A pl Wall S treet Journal, A ugust 16, 1949.




In addition to this current record o f exports to the
United Kingdom as shown in Chart II, the following is
a brief commodity-by-commodity summary o f the ex­
port outlook, based on the official statements o f the Brit­
ish Chancellor, Sir Stafford C ripps; releases o f the U. S.
Department o f A griculture; E C A forecasts; and infor­
mal contacts with businessmen in the Fifth District.

Tobacco
In his July 14 proposal o f an overall reduction in
spending by Britain in the United States and Canada o f
some $400 million in the current fiscal year, Chancellor
Cripps specifically called for a reduction in tobacco im­
ports o f from $110 million to $90 million. Thus, in the
outlook for District exports, attention should be focused
on tobacco exports to the United Kingdom. The accom­
panying table indicates the past and prospective value of
tobacco exports to the United Kingdom.

4.

MONTHLY REVIEW

AUGUST 1949

Tobacco E xports* F rom U nited States to U nited K ingdom
(1938 and 1947 through m idyear 1950)
(In thousands o f dollars)
Year
Value
1938 .................................................................................................................. 111,900
1947
117,200
.. 90,200
1948
J an .-June 1948 ..........................................................................................
22,100
J an.-June 1949 ............................................................................................. 7,100
July 1949-June 1950 ................................................................................ 90,000**
♦Data fo r exports include shipments under aid and relief program s.
* * Estimated on basis o f C ripps’ announcem ent and a statement o f U. S-.
D epartm ent o f Agriculture, July 26, 1949.
S o u rce : Compiled from statistics o f the U. S. D epartm ent o f Com­
merce and the U. S. Departm ent o f Agriculture.

Informed opinion in this District, however, holds that
there will be no important overall changes in the fluecured tobacco export outlook as a result of the British
position. The general feeling seems to be that ECA
financing will maintain flue-cured tobacco exports to the
United Kingdom at approximately last year's levels. In
an article in the August issue of The Wachovia, one of
the District’s exporters expressed the concensus as fol­
lows :
It was anticipated that approximately 175 mil­
lion pounds of 1949 crop exports would be taken by
Great Britain. At the moment it is not known what
effect, if any, the austerity program of the British
Government for the conservation of dollar exchange
announced recently will have on British purchases
of American tobaccos this fall. It is my opinion
that Great Britain will have to buy somewhere near
its previous estimated requirements of 175 million
pounds. However, if British purchases should be
materially reduced from this figure, it would neces­
sarily have some tendency towards weakening the
market and more tobacco would have to be taken
in under the government loan program than other­
wise could be necessary.2
Iron and Steel
In Cripps’ official statement to the Commons calling
for the 25 per cent cut in imports, he stated: “ W e shall
have to cut off part of our imports of steel so that main­
tenance of a high level of domestic production becomes
more important than ever.” Although currently exports
of iron and steel are running above last year’s level, latest
estimates by the OEEC indicate that, if production tar­
gets abroad are reached, United Kingdom imports of fin­
ished steel from the United States will decline from
$11.5 million in 1948-49 to $9.1 million in 1949-50, and
to approximately $3 million in 1952-53.
In the report of the ECE,3 released in June, the con­
tinuous rise in the production of iron and steel in the
European nations was labelled “ the most important fea­
ture of the industrial history of the year.” However,
the ECE report further pointed out in its analysis of the
distribution of gross investment by economic sectors
that there was a heavy proportion of total investment in
2James S. Ficklen, “ The Outlook fo r the 1949 Tobacco C rop,” The
W achovia (W inston-Salem , A ugust, 1949), p . 10.
3E conom ic Survey o f E urope in 19^8, prepared by Research and P lan­
n ing Division o f the Econom ic Commission fo r E urope, U nited N ations
E conom ic and Social Council (W ashington, A p ril 1949).




5

manufacturing devoted to iron and steel in the various
countries. The implication seems to be that, if the in­
vestment program abroad is carried to completion, there
may be developed a substantial excess capacity in the
steel industry of Western Europe with a corresponding
reduction or elimination of steel imports from the United
States.
Bituminous Coal
At the end of June, the Economic Co-operation A d­
ministration reported that the Marshall Plan countries
now have sufficient coal for all essential needs and that
the coal problem in the European Recovery Program is
in its second stage. The ECA pointed out in this report
that the shortage of coal had been one of the principal
limiting factors upon European recovery, but that recov­
ery in coal production abroad has now sharply reduced
import requirements.
Since the United Kingdom normally does not import
coal from the United States, the current British situ­
ation will have no effect on Fifth District exports of
coal. Perhaps it should be noted, however, that current
ECA estimates indicate a possible sharp drop in coal ex­
ports to other ERP countries. Specifically, the ERP
countries’ requirements for U. S. coal are expected to
drop from $152 million in the fiscal year ending June
30, 1949, to $99 million in the fiscal year 1949-50.
Cotton
With regard to cotton, the Cripps’ announcement was:
“ It will not be possible to import all the dollar cotton we
had hoped for, but we shall import at least as much as
last year, so that the existing consumption level of
United States cotton by Lancashire should not be appre­
ciably affected.” (Most British cotton mills are located
in Lancashire.)
This bearish outlook for cotton exports is further
corroborated by the U. S. Department of Agriculture
statement of July 26, which indicated that cotton imports
(by Britain) would be “ less than planned.” The U SDA
further pointed out the fluctuation in United States cot­
ton exports to the United Kingdom as follows:
Compared with an average of 1,107,000 bales
which we exported to the United Kingdom annu­
ally, 1934-38, we sent 490,000 in 1946-47, 267,000
bales in 1947-48 and 667,000 bales during the first
10 months of 1948-49.4
Although United Kingdom imports of cotton in the first
half of 1949 were valued at $99.6 million compared with
$50.6 million in the first half o f 1948, the outlook ap­
parently is for a contraction, or certainly no expansion,
in American cotton exports to British mills.
Lumber and Allied Products
In a special report by the U. S. Department of Com­
merce on the United Kingdom timber trade, official
British Government statistics are cited to show a decline
of 61 per cent in imports of timber from the United
4Statement of the Office o f Foreign A gricultural Relations, U . SDepartm ent o f Agriculture (W ashington, July 26, 1949).

FEDERAL RESERVE BANK OF RICHMOND

States in 1948 from the 1947 level. (It should be noted
that 1947 was an unusual year in terms of non-avail­
ability of timber from traditional sources.) Declines in
various categories include softw ood lumber, 59 per cen t,
hardwood lumber, 45 per cen t; railway ties, 90 per cen t;
veneers, 55 per cen t; plywood, 87 per cent.
W ith regard to the outlook, the Department o f Com­
merce stated:
It is expected that imports of timber and lumber
from dollar areas will remain on a reduced scale
through June 1952, whereas receipts from Euro­
pean sources will be larger. In this connection,
much importance is attached to the efforts being
made to provide certain eastern European timberexporting countries with timber cutting, hauling,
and other equipment needed to increase their out­
put.5
Inform ed contacts in the Fifth District reveal that
since the war the United Kingdom has purchased very
little lumber from this area. Several representatives of
the lumber industry in the District report that, although
at one time the export market with the United Kingdom
was important, during the past few years there have
been few, if any, exports o f lumber from this area to
the United Kingdom.

Paper and Allied Products
The British Government’s statement noted that im­
ports o f paper and pulp from dollar areas might have to
50ffice o f International Trade, U. S. D epartm ent o f Commerce,
“ W orld Trade in Comm odities, Lum ber and Allied P roducts, United
K ingdom Tim ber Trade in 1948,” V ol. V II, N o. 6 (W ashington, May
1949).

be cut as much as a third. But this apparently will have
little, if any, effect on export prospects o f the Fifth Dis­
trict since this category o f product in the Fifth District
already has a very low priority in terms o f British
imports.
In part, this industry has been operating under the
British Token Import Plan which permits U. S. manu­
facturers, or their authorized agents, with established
prewar trade connections in the United Kingdom to ex­
port to that area token shipments o f specified commodi­
ties. Under this plan, District manufacturers have been
permitted to export annually to the United Kingdom an
amount o f each approved commodity not to exceed 20
per cent o f the value o f each manufacturer’s average
annual shipments o f such commodity during the base
years, 1936, 1937, and 1938.
Other District industries affected by the Token Im­
port Plan include m anufactured tob acco and cotton
textiles. The annual quotas for 1949 for certain items
coming within these categories may be cited as fo llo w s:
cigarettes, $58,200; manufactured smoking tobacco and
plug tobacco, $28,600; woven cotton piece goods o f all
kinds, $32,350; other miscellaneous cotton fabrics (e.g.,
cotton ribbon, embroideries, sewing thread, etc.), $10,082. The 1949 annual quota for these two groups thus
totals only $130,232, and the British Government is not
committed to an annual expenditure for these items in
excess o f that amount. Since it is doubtful if any im­
port licenses could be obtained for items o f manufac­
tured tobacco or cotton textiles not under the Token
Plan, it is obvious that the latest sterling-dollar crisis
will have little or no effect upon these industries.

Business Conditions
Continued from page 2

year and may show some rise this fall and winter under
current operating conditions.

Strong Spots
A fter a poor spring start, the construction industry in
this District has made a rather substantial gain. In fact,
the July level o f contract awards on a seasonally adjusted
basis was back near the peak levels established in 1948.
This is due in the main to a substantial increase in com ­
mercial building, “ other” residential building, and to
apartments and hotels. Manufacturing buildings, one
and two-family houses, public works and utilities, and
educational buildings have thus far in 1949 shown a sub­
stantial drop from the same period o f 1948. Expecta­
tions earlier in the year that educational buildings and




6

public works and utilities would be sustaining factors in
the building situation have not proven to be correct.
The situation over the District, however, is somewhat
spotty. The gain in commercial buildings has been due
almost wholly to the District o f Columbia; and the gain
in apartments and hotels has come largely in the District
o f Columbia, North Carolina, and to a lesser extent in
South Carolina.
Employment in the trade and service industries has
held up remarkably well in most areas o f the District.
The trade level in the District is holding better than in
most other sections o f the United States. Resumption
of cotton, rayon, and hosiery mill activity came just in
time to prevent distress in the southern part o f the Dis­
trict. Bank loans are again rising, and the business cli­
mate in this area hints strongly o f improvement.

AUGUST 1949

MONTHLY REVIEW

Recent Changes in Condition of Fifth District
Member Banks -- June 30, 1949
Few significant changes appear in the June 30 pre­
liminary condition figures for the member banks of the
Fifth Federal Reserve District. This is remarkable
when the rather considerable changes in the general
economic situation in the first half of 1949 are taken
into account.
Total assets of all Fifth District member banks re­
corded a modest shrinkage o f 4 per cent from January
1 through June 30. Loans and investments were off 1.6
per cent for the same period— and for the full year,
June 30, 1948, to June 30, 1949, an even more modest
decline o f 1 per cent was registered.

proximately 25 per cent above the figures for the first
six months o f 1948.

On the deposit side, demand deposits showed a some­
what sharper decline of 7 per cent in the first six months
o f 1949, but for the preceding twelvemonth, there was
a slighter decline o f 3 per cent. Time deposits, on the
other hand, continued to rise and, on June 30 last, stood
3 per cent higher than a year ago— most o f the increase
having taken place in the first six months o f this year.

Real estate loans, which comprised 32 per cent o f total
loans as o f June 30, 1949, and increased 5.8 per cent
from June, 1948, to December, 1948, declined slightly
during the six months ending June 30, 1949. They
amounted to almost $497 million, or 0.2 per cent less
than the amount held on December 31, 1948. Break­
down o f these loans shows : loans on farm land increased

In the period under review, in which loan contraction
on a national scale was going on, the decline in Fifth
District banks’ total loans amounted to 4 per cent— and
were actually 1 per cent higher than one year earlier,
namely, June, 1948.
Capital accounts continued to move slowly upward
and, at $394 million, stood 3 per cent above the figure
for January 1, 1949, and 6 per cent above the figure for
June 30, 1948. This would seem to indicate a healthy
strengthening of capital structures and to represent a
desirable change from the influence o f the war period in
which deposit liabilities increased much more rapidly
than capital accounts.

5.0 per cent from June, 1948, to June, 1949; loans on
other property increased 7.1 per cent during the same
period; loans on residential property declined 1.7 per
cent from December, 1948, to June 30, 1949. A s of
June, 1949, these loans were more than $16 million high­
er than for the same period a year earlier.

Analysis o f member banks’ commercial and industrial
loans shows that they rose throughout 1948, and by year
end had increased by almost $40 million. From De­
cember 31, 1948, to June 30, 1949, however, the loan
total declined over $80 million, or 13.6 per cent, and this
decline was more than twice as great as the gain in the
preceding year. A s o f June 30, 1949, the total was $510
million, almost one-third o f the total loans held by mem­
ber banks in the Fifth District.

Bank profits, somewhat surprisingly, in view o f the
recent declines in loans and investments, increased ap­




Consumer loans continued to advance although at a
somewhat slower rate than that experienced in 1946 and
1947. They show an increase o f $34 million, or 10.3 per
cent, from June 30, 1948, to June 30, 1949. During the
period from June, 1948, to June, 1949, there were in­
creases in retail automobile instalment paper o f 35.5 per
cen t; in other retail instalment paper o f 38.8 per cen t;
in instalment cash loans o f 25.1 per cen t; and in repair

17]

FEDERAL RESERVE BANK OF RICHMOND

ASSETS AND LIABILITIES— MEMBER BANKS, FIFTH FEDERAL RESERVE DISTRICT
(Amounts in thousands of dollars)
June 30,
1949

Dec. 31
1948

June 30,
1948

ASSETS
Loans and investments............................... .....................................
Loans (including overdrafts).......................................................
United States Government direct obligations......................... .
Obligations guaranteed by United States Government..........
Obligations of States and political subdivisions..................... .
Other bonds, notes and debentures.............................................
Corporate stocks (including Federal Reserve Bank stock)..

4,231,810
1,524,267
2,437,825
59
127,076
132,221
10,362

4,302,496
1,586,079
2,453,260
125,327
9,849

4,277,443
1,508,191
2,509,782
337
121,697
127,842
9,594

Reserves, cash, and bank balances...............................................................................
Reserve with Federal Reserve Bank........................................................................
Cash in vault..................................................................................................................
Demand balances with banks in United States (except private banks and
American branches of foreign banks).................................................................
Other balances with banks in United States.......................................................
Balances with banks in foreign countries..............................................................
Cash items in process of collection...........................................................................

1,478,047
765,156
119,413

1,646,057
849,151
113,000

1,488,686
744,717
124,223

331,246
980
94
261,158

365,083
902
78
317,843

342,483
868
87
276,308

53,381
924

50,797
921

47,933
1,263

3,282
253
14,966

2,803
410
14,855

2,623
551
14,754

5,782,663

6,018,339

5,833,253

Demand Deposits ................................................................................................................
Individuals, partnerships, and corporations..............................................................
U. S. Government.............................................................................................................
States and political subdivisions...................................................................................
Banks in United States..................................................................................................
Banks in foreign countries.............................................................................................
Certified and officers’ checks, cash letters of credit and travelers’ checks, etc..

4,011,835
3,189,614
68,378
298,397
372,523
5,091
77,832

4,311,648
3,335,924
99,500
340,823
447,657
5,950
81,794

4,130,161
3,221,036
94,634
356,964
381,558
4,451
71,518

Time Deposits .
Individuals, partnerships, and corporations..
United States Government................................
Postal Savings .....................................................
States and political subdivisions......................
Banks in the United States..............................

1,339,360
1,257,403
25,151
738
55,079
989

1,292,999
1,249,421
16,106
240
25,808
1,424

1,299,852
1,261,727
14,875
244
21,546
1,460

Total deposits

5,351,195

5,604,647

5,430,013

3,980
271
32,691

1,465
410
28,944

3,882
551
27,193

5,388,137

5,635,466

5,461,639

Capital .......................................................................
Surplus ......................................................................
Undivided profits ...................................................
Other capital accounts............................................

120,316
181,158
70,460
22,592

119,407
175,199
65,162
23,105

117,120
167,112
64,797
22,585

Total capital accounts........................... .

394,526

382,873

371,614

Total liabilities and capital accounts..

5,782,663

6,018,339

5,833,253

Demand deposits adjusted......................................

3,304,685

3 440,698

3,373,210

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

479

478

478

Bank premises owned and furniture and fixtures.....................................................
Other real estate owned..............................................................................................
Investments and other assets indirectly representing bank premises or other
real estate ............................................................. ...................................................
Customers’ liability on acceptances............................................................................
Other assets ........................................................................................................ ...........
Total assets

m 3

LIABILITIES

Bills payable, rediscounts, and other liabilities for borrowed money..
Acceptances outstanding ..............................................................................
Other liabilities ...............................................................................................
Total liabilities
CAPITAL ACCOUNTS




[81

MONTHLY REVIEW

and modernization instalment loans o f 9.3 per cent. Sin­
gle payment loans decreased by 2.6 per cent in the same
period. Consumer loans comprised 24 per cent o f total
loans of all Fifth District member banks as o f Tune 30,
1949.
Loans to farmers comprised only 4 per cent o f total
loans as o f June 30, 1949, but rose by 42.2 per cent from
June 30, 1948, to June 30, 1949. Included in the rise
are loans to farmers directly guaranteed by the Com­
modity Credit Corporation, which rose from $185,000 on
June 30, 1948, to $11,291,000 on June 30, 1949. Loans
for purchasing or carrying securities (accounting for
almost 4 per cent o f total loans as o f June, 1949) con­
tinued to decline, showing a 19.8 per cent decrease from
June 30, 1948, to June 30, 1949. All other loans (com ­
prising 3 per cent o f total loans as of June, 1949) in­
creased 6.5 per cent from m id-1948 to December 31,
1948, but decreased 12.2 per cent from December, 1948,
to June 30, 1949.
Holdings of United States Government obligations by
Fifth District member banks continued their steady de­
cline from the record high reached in December, 1945.
The decline from June 30, 1948, to June 30, 1949,
amounted to 2.9 per cent. M ajor declines occurred in
Treasury notes and in bonds maturing in 5 to 10 years,
the former declining by 56.7 per cent and the latter by
54.9 per cent in the one-year period. Bonds maturing
after 20 years decreased by 16.0 per cent and Treasury
certificates o f indebtedness by 1.4 per cent. Bonds ma­
turing in 5 years or less increased by 85.8 per cent in the

AUGUST 1949

period, while bonds with 10 to 20 year maturity increased
by 28.8 per cent. Treasury bills increased by 42.1 per
cent and nonmarketable bonds (including savings
bonds) by 31.6 per cent.
Guaranteed obligations decreased $278,000, or 82.5
per cent, from June 30, 1948, to June 30, 1949. Cor­
porate stocks rose 8.0 per cent during the one-year pe­
riod, while obligations of States and political subdivi­
sions rose 4.4 per cent, and other bonds, notes, and
debentures rose 3.4 per cent.
Cash assets increased 10.6 per cent from June 30,
1948, to December 31, 1948, but showed a decline o f
10.2 per cent from December, 1948, to June 30, 1949.
Reserves held with the Federal Reserve Bank would
appear to account for the major portion o f the differ­
ences shown, although balances with other banks and
cash items in process o f collection show the same gen­
eral trends. A s o f June 30, 1949, cash assets were more
than $10.5 million less than at June 30, 1948.
Total deposits decreased 1.5 per cent from June 30,
1948, to June 30, 1949, although there was a seasonal
rise in deposits as o f the end o f 1948. Total demand
deposits declined by 2.9 per cent from June, 1948, to
June, 1949, but they showed an increase o f 4.4 per cent
in December over mid-1948. Time deposits increased
3.0 per cent from June, 1948, to June, 1949, but showed
a slight drop at the end o f 1948 from the June, 1948,
total. Time deposits o f the United States Government,
o f Postal Savings, and o f States and political subdivi-

CLASSIFICATION OF LOANS A N D U NITED STATES GOVERNMENT DIRECT OBLIGATIONS
MEMBER BANKS, FIFTH FEDERAL RESERVE DISTRICT
_________________________________________________________________________________ (In thousands of dollars)_______
June 30,
1949

Dec. 31,
1948

June 30,
1948

Loans — net ......................................................................................................................
Reserves ...................................... ............................................................................. ....

1,524,267
13,752

1,586,079
11,811

1,508,191
8,291

Loans — gross ..................................................................................................................
Commercial and industrial loans, including open-market paper ........................
Loans to farmers directly guaranteed by the Commodity Credit Corporation..
Other loans to farmers ............................ .................................................................
Loans to brokers and dealers in securities ...........................................................
Other loans for purchasing or carrying securities..................................................
Real Estate loans: On farm lands ............................................................... .......
On residential property .........................................................
On other property .................................................................
Single-payment loans ..................................................................................................
Loans to banks ..................................................................................... ........................
Other loans to individuals:
Retail automobile instalment paper .................................................................
Other retail instalment paper .............................................................................
Repair and modernization instalment loans.....................................................
Instalment cash loans .................................... ......................................................
All other loans (including overdrafts) ...................................................................

1,538,019
510,347
11,291
50,974
8,936
44,318
42,130
332,810
122,013
190,599
1,478

1,597,890
590,810
14,435
34,351
7,867
49,741
41,231
338,659
118,029
191,916
1,808

1,516,482
551,271
185
43,610
8,200
58,175
40,127
316,561
113,910
195,740
3,230

72,326
22,214
19,751
61,635
47,197

62,147
21,225
18,103
53,968
53,600

53,374
16,000
18,078
49,249
48,772

United States Government direct obligations .............................................................
Treasury bills ...............................................................................................................
Treasury certificates of indebtedness .....................................................................
Treasury notes ..............................................................................................................
Nonmarketable bonds ...................................................................................................
Other bonds maturing in 5 years or less .................................................................
Other bonds maturing in 5 to 10 years .................................................................
Other bonds maturing in 10 to 20 years
.............................................................
Bonds maturing after 20 years .................................................................................

2,437,825
103,878
361,944
64,716
117,827
1,002,462
448,775
256,665
81,558

2,453,260
102,183
369,810
102,810
115,928
836,005
625,514
222,877
78,133

2,509,782
73,101
367,124
149,446
88,971
539,744
995,076
199,207
97,113

Note:
 June 1949 figures are preliminary.


9

FEDERAL RESERVE BANK OF RICHMOND

sions show large increases from June, 1948, to June,
1949. Practically all other demand and time deposits
show decreases for the period. Demand deposits o f in­
dividuals, partnerships, and corporations decreased 1.0
per cent, while time deposits of individuals, partnerships,
and corporations decreased 0.3 per cent from June, 1948,
to June, 1949, but these deposits showed the same gen­
eral patterns at the end of 1948 as total demand and
total time deposits.
Total capital accounts increased by about $23 million,
or 6.2 per cent, from June 30, 1948, to June 30, 1949,
bringing the amount o f total capital of all Fifth District
member banks to $394,526,000 as o f June 30, 1949.
Growth was chiefly in the surplus and undivided profits
items.
Net profits reported by member banks in the Fifth
District for the first half of 1949, according to prelimi­
nary estimates, amounted to $17,238,000. This repre­
sents a 25 per cent increase over the first half o f 1948,
when losses, charge-offs, and transfers to valuation re­
serves were heavier. Cash dividends declared increased

around 9 per cent for the first half o f 1949 as against
the corresponding period in 1948.
Mid-year estimates o f total current operating earn­
ings indicate a new postwar peak o f $69,343,000 for the
first half o f 1949, an increase o f 6.3 per cent over the
same period in 1948. The principal contributing factor
was the increase in interest and discount on loans, which
amounted to $3,680,000, or 12 per cent, from mid-1948
and accounted for 50 per cent of gross earnings. Cur­
rent operating expenses in the same period totaled $42,379,000, an increase o f $2,501,000, or 6.3 per cent, over
the corresponding period in 1948.
On balance, net current operating earnings amounted
to $26,964,000, or 6.3 per cent above the similar period
in 1948. In spite o f an increase in taxes on net income
over last year and a relative decrease in recoveries, trans­
fers from valuation reserves, and profits on securities,
there was a larger increase in net profits principally
attributable to a decrease in losses, charge-offs, and
transfers to valuation reserves compared with the mid­
year earnings data in 1948.

EARNINGS AN D DIVIDENDS — MEMBER BANKS IN FIFTH DISTRICT
(in thousands of dollars)
Totals — first half 1949______

_____ Change from first half 1948

Reserve
City
banks

Country
banks

All
members

Reserve
city
banks

Country
banks

Interest and dividends on U. S. Gov’t
obligations ............................................................
Interest and discount on loans ............................
All other earnings .................................................

8,990
11,892
6,696

11,406
22,892
7,467

20,396
34,784
14,163

— 313
+1,158
+ 273

— 68
+2,522
+ 537

— 381
+3,680
+ 810

Total Current Operating Earnings ..................

27,578

41,765

69,343

+1,118

+2,991

+4,109

Total Current Operating Expenses ..................

17,760

24,619

42,379

+

286

+2,215

+2,501

Net Current Operating Earnings ......................

9,818

17,146

26,964

+

832

+

776

+1,608

All
members

Total recoveries, transfers from valuation
reserves and profits ...........................................
Total losses, charge-offs and transfers to
valuation reserves .............................................
Taxes on net income ...........................................

740

1,291

2,031

— 1,138

— 525

— 1,663

1,661
2,752

2,720
4,624

4,381
7,376

—2,127
+ 406

—2,404
+ 586.

-4,531
+ 992

Net profits ...............................................................

6.145

11.093

17,238

+1,415

+2,069

+3,484

Cash dividends declared .......................................

2,670

3,087

5,757

+

+

+

Note:

All figures preliminary.




108

364

472

MONTHLY REVIEW

AUGUST 1949

F E D E R A L R E S E R V E B A N K OF RICH M O N D
(A ll Figures in Thousands)
ITEM S

A ug. 17
7-13-49

1949

DEBITS TO IN D IV ID U A L A CCOU N TS
(000 Om itted)

Change in A m t, From
8-18-48

Total Gold Reserves ..................
Other Reserves .............................
Total Reserves ........................
Bills Discounted ...........................
Industrial Advances ....................
Govt. Securties, Total ................
Bonds ...........................................
Notes ...........................................
Certficates ...................................
Bills .............................................
Total B ills & Securities ............
U ncollected Items ........................
Other Assets .................................
T otal Assets ...............................

$1,083,386
19,166
1,102,552
13,786
21
1,170,054
499,145
22,507
401,674
246,728
1,183,861
225,974
21,019
2,533,406

+
+
+
+
—
—
—
—
—
—
—
—
—
—

6,073
1,941
8,014
3,121
5
39,553
321
418
32,855
5,959
36,437
13,495
2,773
44,691

-f- 31,874
+
3,193
+ 35,067
—
8,606
—
33
— 229,537
- f 17,926
— 98,133
+ 68,615
— 217,945
— 238,176
— 23,944
—
3,965
— 231,018

Federal Reserve Notes in C ir.....
Deposits, Total ...............................
Members’ Reserves ..................
U. S. Treas. Gen. A cct.........
F oreign .........................................
Other Deposits ...........................
D ef. A vailability Items ............
Other Liabilities ...........................
Capital A ccounts ........................
T otal Liabilities ......................

1,543,216
735,906
674,622
34,452
23,780
3,052
209,862
416
44,006
2,533,406

—
—
—
+
—
—
—
—
—
—

719
34,479
51,940
19,500
794
1,245
7,639
130
1,724
44,691

— 88,752
— 133,218
— 44,480
— 95,458
+
5,606
4* 1,114
— 14,613
—
207
-f- 5,772
— 231,018

51 R E P O R T IN G M EM BER B A N K S — 5th D ISTRIC T
(A ll Figures in Thousands)
ITEM S
Total Loans ...................................
Bus. & A g r i................................
Real Estate Loans ..................
A ll Other Loans ......................
T otal Security H oldings ............
U. S. Treasury Bills ............
U. S. Treasury Certificates....
U. S. Treasury Notes ............
U. S. Govt. Bonds ..................
Other Bonds, Stocks & Sec.
Cash Items in Process o f Col...
Due from Banks ...........................
C urrency & Coin ........................
Reserve w ith F. R. Banks .....
Other Assets .................................
Total A ssets ...............................

A ug. 17
1949
$ 808.261+*
358,521
198,914
259,669
1,792,168
134,072
215,434
41,250
1,257,762
143,650
214,464
169,038+
61,024
439,129
50,538
3,534,622

Change in A m t, From
7-13-49
8-•18-48
—
39,086
+ 15,254
—
28,041
9,563
+
1,355
3,478
+
+
9,231
2,247
+
+ 75,442
+ 86,602
+ 48,478
+ 94,956
6,740
4,467
+
+
43,509
751
+
17,225
+ 21,216
+
530
+ 11,190
+
—
5,341
1,606
+
—
10,206
+ 17,964
—
—
8,046
3,311
—
—
36,799
40,017
1,781
3,528
+
+
+ 32,085
+ 27,286

Total Demand Deposits ............
Deposits o f Individuals .......
Deposits o f U. S. Govt...........
Deposits State & L oca l Govt.
Deposits o f Banks ..................
Certified & Officer’s Checks..
T otal Tim e Deposits ..................
Deposits o f Individuals ........
Other Tim e Deposits ............
Liabilities fo r B orrow ed M oney
A ll Other Labilities ..................
Capital A ccoun ts ........................
Total Liabilities ......................

$2,667,023
2,056,689
44,322
140,647
382,892*
42,473
616,474
568,204
48,270
4,600
21,578
224,947
3,534,622

+
+
+
+
+
—

+
+
+
+
+

29,046
7,554
15,739
7,016
2,272
1,009
74
103
177
1,200
1,320
593
32,085

+
+
—

+
+
+
—

+
+
+

7,677
76,496
28,036
46,968
6,993
808
14,030
15,126
29,156
8,100
3,415
10,264
27,286

M aryland .................. $27,538,000
.. 5,743,000
Dist. o f Columbia
18,467,000
V irgin ia ....................
8,341,000
W est V irgin ia ........
19,800,000
N orth Carolina
8,975,000
South Carolina .....
F ifth D istrict
S ou rce:

$88,864,000

% chg. from
July 1948
— 19
— 35
+ 12
+ 3
+ 26
+ 35
— 1

% chg. from
7 Mos. 1949 7 Mos. 1948
$163,165,000
62,307,000
134,677,000
33,492,000
95,412,000
54,485,000
$543,538,000

— 10

DE PO SITS IN M U T U A L S A V IN G S B A N K S
8 B altim ore Banks

 Deposits ....................
Total


$393,034,173

June 30, 1949
$393,446,443

7 Mos.
1949

$ 718,616

$ 745,614

$ 5,173,052

! 5,066,972

908,505
19,361
17,035
27,009

964,509
25,037
19,579
27,471

6,560,350
144,475
119,568
182,910

6,668,858
146,736
130,216
184,611

43,229
234,023
86,770
66,744
13,567
113,192
32,332
11,843
142,214

51,853
239,825
107,404
75,818
12,151
121,282
36,791
14,821
122,351

315,646
1,576,196
582,526
493,728
90,795
842,583
216,371
95,388
858,813

349,321
1,598,194
662,088
514,553
81,049
765,623
241,212
95,524
831,911

55,267
90,299
71,501
38,252

60,406
87,999
78,990
41,834

406,855
670,787
533,245
301,259

388,338
631,664
543,621
322,201

20,048
19,991
31,763
28,218
166,540
19,362
439,821
86,995

21,896
22,325
38,468
32,467
190,811
19,591
481,996
90,085

149,768
153,030
242,331
218,429
1,204,152
134,284
3,282,757
622,161

149,749
173,173
264,889
219,357
1,246,261
138,248
3,138,120
592,694

36,339
115,481
26,888
52,360
23,631

42,541
134,437
34,299
62,136
29,332

310,449
924,503
200,760
390,306
174,795

288,597
912,682
220,548
397,991
185,313

$4,034,119

$27,172,272

$27,154,814

July 31, 1948
$392,484,523

7 Mos.
1948

COTTON C ON SU M PTIO N A N D ON H A N D — B ALE S
July
1949

July
1948

Fifth District S tates:
Cotton consumed ...........
240,114
Cotton Growing S tates:
Cotton consumed ............
415,957
Cotton on hand July 31 in
consum ing establishm 'ts 738,170
storage & compresses 4,128,366
United S tates:
Cotton consumed ............
455,106
Cotton on hand July 31 in
consum ing establishm’ ts 884,175
storage & compresses 4,143,183
Spindles active, U. S .... 19,012,000

A ug. 1 to July 31
1949
1948

318,770

5,980,092

4,690,008

561,521

6,983,246

5,254,239

7,797,841

9,354,392

1,183,073
1,290,610
627,462
1,471,908
1,333,945
21,327,000

Source: Departm ent o f Commerce.

COTTON CON SU M PTIO N — F IF T H DISTRIC T

S ource:

— 15
+ 24
+ 8
— 46
— 20
— 4

F. W . Dodge Corp.

July 31, 1949

Totals

July 1949 ..............
June 1949 ............
July 1948 ............
7 Months 1949 ....
7 Months 1948 ....

C ON STR U C TIO N C O N TRA C TS A W A R D E D
July
1949

District

July
1948

*,757,196

Dist. o f Columbia
...... .
W ashington
M aryland
B altim ore .............
Cumberland
Frederick .............
H agerstown
N orth Carolina
A sheville .............
Charlotte .............
Durham ...............
Greensboro .........
K inston .................
Raleigh .................
W ilm ington ........
W ilson .................
W inston-Salem ..
South Carolina
Charleston ...........
Columbia .............
Greenville .............
S partanburg .....
V irginia
Charlottesville
Danville ...............
L ynchburg ...........
N ew port News
N orfolk ...............
Portsm outh .........
R ichm ond .............
R oanoke ...............
W est V irgin ia
Bluefield ...............
Charleston
.........
Clarksburg ..........
H untington .........
Parkersburg .......

No. Carolina

♦Net Figures, reciprocal balances being eliminated.
♦♦Less losses fo r bad debts.

S TATE S

July
1949

So. C arolina

126,171
163,762
168,767
1,151,485
1,515,053

105,993
140,530
135,656
968,891
1,159,446

V irginia

District

7,950
7,650
14,347
77,709
123,706

240 114
311 942
318’ 770
2,197 585
2,798,205

Departm ent o f Commerce.

PR ICE S OF U N FIN ISH ED C OTTON T E X T IL E S
July 1949
A verage, 17 constructions......................
Printcloths, average ( 6 ) ........................
Sheetings, average ( 3 ) ............................
Twill (1) ......................................................
Drills, average ( 4 ) .....................................
Sateen (1) .................................................
Ducks, average ( 2 ) .....................................

59.99
62.90
54.13
62.33
55.15
80.49
58.30

June 1949
60.22
63.12
54.83
62.44
55.29
80.34
58.30

July 1948
79.04
86.92
63.59
99.71
69.27
128.15
63.23

N o te : The above figures are those fo r the approxim ate quantities o f
cloth obtainable from a pound o f cotton w ith adjustm ent fo r
salable waste.
S ource: Departm ent o f A griculture.

1
1

FEDERAL RESERVE BANK OF RICHMOND
SOFT C O A L P R O D U C TIO N IN T H O U SA N D S OF TONS

B U ILD IN G PE R M IT FIGU RES
July 1948

July 1949
M aryland
B altim ore
.................. $
Cum berland ................
Frederick ....................
H agerstow n
..............
Salisbury ....................
V irgin ia
D anville ......................
Lyn chburg ..................
N orfolk
......................
Petersburg ..................
Portsm outh ................
R ichm ond ..................
R oanoke ......................
W est V irgin ia
Charleston ..................
Clarksburg ..................
H untington ................
N orth Carolina
A sheville ....................
Charlotte ....................
Durham ......................
Greensboro ................
H igh P oin t ................
R aleigh
......................
R ocky M ount ............
Salisbury ....................
W inston-Salem
........
South Carolina
Charleston ..................
Columbia ....................
Greenville ..................
Spartanburg ..............
Dist. o f Columbia
W ashington
..............

7 Mos. 1949

July
1949

7 Mos. 1948
REGIONS

2,940,820
78,875
56,705
753,960
60,925

5,281,080
67,625
21,800
110,235
67,370

$ 28,421,445
313,100
594,127
1,490,340
992,686

36,476,860
423,125
1,084,910
784,729
1,668,991

158,372
892,760
1,328,165
115,987
90,285
1,298,951
1,170,706

274,861
236,786
1,693,985
174,196
206,815
1,149,498
838,929

1,650,659
3,068,202
7,155,316
932,270
933,637
10,303,715
6,991,778

3,829,076
2,049,058
11,252,145
691,724
1,046,122
11,227,482
4,687,063

1,430,531
75,300
324,534

711,361
164,876
548,334

4,817,360
689,870
2,540,286

6,537,108
1,161,158
5,855,749

173,147
1,225,478
1,293,590
685,669
218,270
387,145
131,665
155,825
483,339

327,686
2,943,191
398,485
739,783
322,175
475,500
163,300
79,375
596,749

1,693,125
13,547,491
4,680,740
6,777,242
1,695,782
4,658,425
934,048
772,437
5,484,040

1,623,543
12,679,558
6,914,937
6,963,332
2,650,125
5,910,909
1,097,625
585,350
3,774,701

1,410,807
424,108
2,463,300
1,822,089

223,244
1,452,590
634,050
152,483

2,848,272
4,026,773
6,591,681
2,578,541

2,049,999
4,610,718
4,327,450
1,537,656

7,237,988

3,486,160

42,782,544

29,659,624

D istrict Totals ......$28,889,296

$23,542,522

$169,965,932

$173,160,827

W est V irginia
V irginia
...............
Maryland ...............
F ifth District
United States
% in D istrict
S ource:

July
1948

7,844
960
31
8,835
26,040
33.9

7 Mos.
1949

%
Change

14,600
1,889
160
16,649
48,611
34.2

— 46
— 49
— 81
— 47
— 47

7 Mos.
%
1948 Change
92,025
11,428
1,023
104,476
334,888
31.2

85,053
9,125
409
94,587
281,431
33.6

—
—
—
—
—

8
20
60
9
16

Bureau o f Mines.

R A Y O N Y A R N SH IPM EN TS A N D STOCKS
July 1949

June 1949

July 1948

Rayon yarn shipments....................
Staple fiber shipm ents....................

60,700,000
13,400,000

56,200,000
10,900,000

72.600.000
22.300.000

R ayon yarn s to c k s ..........................
Staple fiber stocks.............................

48,300,000
15,900,000

50,400,000
18,900,000

9,400,000
4,000,000

S o u rce : R ayon Organon.

T O BACCO M A N U F A C T U R IN G
J uly % chg. from
1949
July 1948
Sm oking & Chewing tobacco
(Thousands o f lb s .)............
14,388
Cigarettes (Thousands) ..... 25,853,620
Cigars (Thousands) ..............
422,496
Snuff (Thousands o f lbs.)....
2,238

—
—
—
—

3
6
2
25

7 Mos.
1949

% chg. from
7 Mos. 1948

109,239
201,346,733
3,104,419
22,568

— 3
-}- 1
— 3
— 7

S ource: Treasury Departm ent.
R E PO R T ON R E T A IL F U R N IT U R E SALE S
Percentage com parison o f sales in periods
nam ed with sales in same periods in 1948
July 1949
7 Months 1949

STATE S
M aryland (5 )* ..........................
District o f Columbia (6)*....
V irgin ia (1 9)* ........................
W est V irgin ia (1 0 )* ................
N orth Carolina (1 3 )* ..............
South Carolina (1 0 )* ..............
D istrict (6 3)* ......................

0
+32
-— 11
— 18
— 8
— 6
+ 2

— J
12
13
10
— 3

0
+32
— 16
— 10
— 10
— 13
— 23

— 5
+14
4
6
— 10
— 23
11

CO M M ER C IA L F A IL U R E S

T ,,

t

N um ber o f Failures
D istrict
U.S.

M ONTH S
July 1949
June 1949 .........
July 1948
7 Months 1949 .
7 Months 1948

35
28
11
242
105

T otal Liabilities
D istrict
U.S.

719
828
420
5,300
2,963

$ 907,000
597,000
195,000
6,552,000
2,724,000

IN D IV ID U A L C ITIES
Baltimore, Md. (5 )* ................
W ashington, D. C. (6 )* ........
Richm ond, V a. (6 )* ................
Lynchburg, V a. (3 )* ................
Charleston, W . V a. ( 3 ) * ........
Charlotte, N . C. (3 )* ............
Columbia, S. C. (3 )* ................

S ou rce: Dun & Bradstreet.

D E P A R T M E N T STORE T R A D E
Richm ond

* Num ber o f reporting firms.

A uto supplies ( 6 )* ...........
E lectrical goods ( 4 )* .......
Hardware (1 3)* ...............
Industrial supplies (3)*..
Drugs & sundries (13)*..
Dry goods (1 1 )* ................
Groceries (5 4)* ................
Paper & products (5)*....
T obacco & products (7 )*
Miscellaneous (72) ..........
.District Totals (188)*..

N et Sales
July 1949
com pared with
June
July
1949
1948

W ashington

Other Cities

D istrict

P ercentage change in 7 mos. sales 1949 com pared with 7 mos. in 1948:
— 3
— 6
+ 3
— 4
— 2

— 20
— 29
— 12
— 41
— 5
— 41
— 6
— 20
— 9
— 10
— 10

+ 5
— 14
0
— 31
— 4
— 15
— 4
— 16
— 8
— 5
— 5

Stock
July 31, 1949
compared with
July 31 June 30
1949
1948

P ercentage change in stocks on July 31 1949, com p, with July 31, 1948:
— 5
— 6
— 3
— 14
— 6
Percentage change in outst’ d’ g orders July 31, 1949 from July 31, 1948:
— 27
— 27
— 29
— 20
— 28

0
+

+

2

Percentage changes in rec’vables July 31, ’ 49 from those on July 31, ’ 48:
+ 8
0
+17
— 3
+ 8

9

+

9

Percentage o f current receivables as o f July 1, 1949 collected in J u ly :
29
41
44
44
40

+ 5
— 19
— 2

— 2
+ 6
— 1

+ 10
+ 5
+ 1

+ 9
— 2
+

P ercentage o f instalm ent receivables as o f July 1, 1949 collected in J u ly :
14
23
19
20
20
M aryland

Dist. o f Col.

V irgin ia

W est V a.

N o. Car.

So. Car.

P ercentage change in July 1949 sales from July 1948 sales, by S tates:
— 13
+ 9
— 5
— 5
— 10
— 5

3

S ou rce: Departm ent o f Comm erce.
* N um ber o f reporting firms.




Baltimore

P ercentage change in July 1949 sales com pared with July 1948:
— 6
— 13
+ 9
— 6
— 3

W H O L E S A L E T R A D E , 188 FIR M S

LIN ES

$ 21,804,000
28,161,000
13,876,000
254,439,000
111,214,000

Percentage change in 7 months 1949 from 7 m onths 1948 sa le s:
— 6
+ 3
— 3
— 1
— 9
—

12

1

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