The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW of Financial and Business Conditions FlFTH Federal Reserve is t r ic t Federal Reserve Bank, Richmond, Va. I N the Fifth Reserve district during the past month there was a substantial shift of excess reserves of member banks to the credit of the Treasury through the purchase of Government securities sold on December 15. At the Reserve bank, members' reserve deposits declined by $17,350,000 between November 15 and December 15, and investments in securities at forty-one reporting member banks rose $26,896,000 during the same period. Federal Reserve notes in actual circulation declined slightly last month, reflecting decreased payrolls in many industries and a smaller expansion in retail trade than usually occurs at the holiday season. Both demand and time deposits dropped in reporting member banks after the middle of November. Debits to individual accounts in twenty-four Fifth district cities declined by 10.8 per cent in November in comparison with October figures, a somewhat larger decrease than occurs in most years. A moderate decrease from October to November is seasonal, due to quarterly payments debited early in October. Business and trade in November and early December were below seasonal expectations in many lines, but lev eled off substantially from the relatively precipitate drop of September and October. There was some further de cline in employment other than that accounted for by seasonal slowing up in construction and other outside work. Commercial failures last month were more numer ous in the district than in either October this year or November last year, but liabilities were much below those of a year ago. New automobile registrations in the dis trict in November were 10.8 per cent fewer than regis trations in the corresponding month last year, but one of the largest selling lines was off the market most of last month. Construction provided for in both city building permits issued and contracts awarded in November was less than was provided for in November 1936, but the decline was moderate and not greater than frequently de velops between corresponding months under normal con ditions. Bituminous coal mined last month was less than the tonnage mined in either October 1937 or November D December 31,1937 1936, the slump in output being partly due to lessened demand from industry and partly to an unsettled situation in the coal market pending announcement of price ranges and differentials for different fields, to be set by the Na tional Bituminous Coal Commission. Both cotton and rayon textile mills continued to restrict operations sub stantially in November, but some progress was appar ently made in inventory reduction in certain textile lines early in December, especially in unfinished goods. Spot cotton prices rose about half a cent a pound last month, in spite of reduced consumption by the textile mills and a further rise in the Department of Agriculture's fore cast of production. Plans to include cotton in Govern ment control measures for next year appear to have been the chief influence in strengthening cotton prices. Final estimates on the 1937 cotton crop show the largest yield on record, and slightly more than 50 per cent above last year's crop. Fifth district cotton growing states produced 27.3 per cent more than in 1936. Tobacco prices in North Carolina continued higher in November than prices a year earlier, but Virginia prices were a shade lower last month. Tobacco manufacturers turned out more cigars, cigarettes, smoking tobacco and snuff in November 1937 than in November 1936. Retail trade in department stores last month was spotted, but averaged slightly above the business done in November, 1936, while wholesale trade was in smaller volume this year in most lines. There follows a statistical summary of conditions de scribed above: % Nov. 1937 Debits to individual accounts (24 cities) ............................................ No. of business failures, 5th district Liabilities in failures, 5th district.. Sales, 57 dept, stores, 5th district... Sales, 59 wholesale firms in 5 lines Registrations, new passenger autos. Value bldg. permits (31 cities)........ Value of contracts awarded, 5th dist. Cotton consumption, 5th dist. (bales) Soft coal mined, U. S. (tons).......... $1,271,937,000 52 660,000 $ $ 11,372,473 4,960,293 $ 14,995 6,155,316 % % 19,578,700 243.550 35,300,000 Nov. 1936 $1,241,274,000 44 1,201,000 $ $ 11,326,539 5,365,148 $ 16,802 6,913,845 $ $ 20,930,600 294,686 41,879,000 Change + 2.5 -f 18.2 — 45.0 + .4 — 7.5 — 10.8 — 11.0 - 6.5 — 17.4 — 15.7 2 MONTHLY REVIEW BA N K IN G CONDITIONS CITIES R eserve Bank Statement : Discounts for member banks at the Federal Reserve Bank of Richmond increased $200,000 between November 15 and December 15, 1937, and on the latter date were $691,000 above discounts on December 15, 1936. Government security holdings also rose by $335,000 during the month and $8,563,000 during the year. On the other hand, industrial loans declined by $44,000 and $893,000 in the month and year, respectively. Federal Reserve notes in actual circulation declined by $725,000 last month, contrary to seasonal trend, but on December 15 totaled $3,544,000 above outstanding circu lation a year ago. Member bank reserve deposits declined $17,350,000 between the middle of November and the middle of December, approximately half of which was apparently invested by member banks in Government se curities. The several changes in the statement resulted in a decrease of $8,881,000 in cash reserves of the Fed eral Reserve Bank of Richmond between November 15 and December 15. ITEMS Discounts held ..................................... ........ Open market paper ........................... Industrial advances ........................... ........ Government securities ................................. Total earning assets ..................... Circulation of Fed. Res. notes................. Members’ reserve deposits .......... ........ Cash reserves ...................................... Reserve ratio ........................................ 000 omitted Dec. 15 Nov. 15 1937 1937 $ 715 $ 515 110 110 2,330 2,374 134,396 134.061 $137,060 213,211 213,936 215,121 232,471 345,238 72.46 Dec. 15 1936 $ 24 121 3,223 125,833 $129,201 209,667 212,412 311,564 71.78 Statement of 41 R eporting M ember Ba n k s : Fortyone regularly reporting member banks in twelve Fifth dis trict cities increased loans and discounts by $1,448,000 be tween November 17 and December 15, 1937, while their investments in securities, chiefly Government issues, rose by $26,896,000. Aggregate reserve balances of the report ing banks decreased $10,005,000 during the month, chiefly due to the purchase of Government securities. Deposits declined materially during the past month, demand de posits of individuals, firms and corporations falling by $5,825,000 and time deposits decreasing by $5,572,000. ITEMS Loans & discounts ............................. Investments in securities ............... ........ Cash in vaults ..................................... ........ Demand deposits ................................. Time deposits....................................... ........ Money borrowed .......................................... 000 omitted Dec. 15 Nov. 17 1937 1937 $254,288 $252,840 394,130 367,234 128,949 138,954 18,574 18,551 454,380 191,588 197,160 0 0 Dec. 16 1936 $227,327 430,967 133,708 18,907 477,383 192,538 0 D ebits to I ndividual A ccounts: Checks totaling $1,271,937,000 drawn against depositors’ accounts in twentyfour Fifth district cities in November this year amounted to $154,218,000, or 10.8 per cent, less than checks drawn in October, but a moderate decline in November is sea sonal because October witnesses a considerable volume of quarterly payments. The November debits total exceeded that of November 1936 by $30,663,000, or 2.5 per cent, the smallest gain registered by any month this year over the corresponding month last year. Debits in the second half of 1937 have shown materially lower percentage in creases over 1936 figures than debits showed in the first half of this year, thereby reflecting clearly the relatively lower level of business activity during the autumn and fell. Maryland Baltimore ............ Cumberland ____ Hagerstown ____ Dist. of Col. Washington . . . . Virginia Danville ............ Lynchburg ........ Newport News ., Portsmouth . . . . Richmond .......... Roanoke ............ West Virginia Charleston ........ Huntington . . . . North Carolina Asheville .......... Charlotte .......... Durham ............ Greensboro ........ Raleigh ............. Wilmington . . . . Winston-Salem South Carolina Charleston ........ Columbia .......... Greenville ........ Spartanburg . . . Fifth District .. . Nov. 1937 000 omitted Oct. Nov. 1936 1937 % of Change Month Year $ 347,279 8,443 7,827 $ 378,930 9,350 9,459 $ 344,553 8,048 7,958 — 8.4 — 9.7 — 17.3 + + - .8 4.9 1.6 250,647 259,753 240,047 — 3.5 + 4.4 15,986 15,061 « 8,450 48,444 4,032 169,243 27,343 10,069 16,664 9,102 51,553 3,995 217,476 27,757 14,570 16,009 9,341 45,587 3,988 168,976 30,192 — 16.2 - 9.6 — 7.2 — 6.0 + .9 — 22.2 — 1.5 4— — + + + — 9.7 5.9 9.5 6.3 1-1 .2 9.4 56,879 18,710 57,592 19,954 46,553 17,106 — 1.2 - 6.2 +22.2 + 9.4 12,597 58,678 42,827 18,856 38,407 10,180 40,027 13,687 65,879 57,686 19,001 43,025 12,256 48,990 11,164 60,101 37,723 16,433 31,632 10,264 38,947 — 8.0 — 10.9 — 25.8 — .8 — 10.7 — 16.9 — 18.3 + 12.8 — 2.4 + 13.5 + 14.7 + 21.4 — .8 + 2.8 15,983 28,235 18,121 9,682 $1,271,937 20,765 31,376 21,913 10,923 $1,426,155 16,019 32,766 23,157 10,140 $1,241,274 — 23.0 — 10.0 — 17.3 — 11.4 — 10.8 — .2 — 13.8 — 21.7 — 4.5 + 2.5 M utual Savings Bank D eposits: After increasing each month since July, deposits in ten mutual savings banks in Baltimore declined slightly during November, but little more than is customary at that season. Aggre gate deposits in the ten banks amounted to $218,047,433 on November 30, 1937, compared with $218,355,228 on October 31, 1937, and $211,806,375 on November 30, 1936. B U SIN E SS CONDITIONS E mployment: Net changes in employment appear to have been small during November and early December, but on the whole the trend was downward. Some indus trial plants reduced working time, and railroad shops laid off a portion of their employees, but extra help taken on for the holiday season in retail circles partly balanced these decreases. Coal production in November declined from the October output, and textile mills still further restricted operations last month, but on the other hand the opening of additional tobacco markets in Virginia since November 1 gave work to a number of employees. The following figures, compiled by the Bureau of Labor Statistics from records submitted by a large number of identical industries, show the trends of employment and payrolls in the Fifth district from October to November: STATES ................... D. of Columbia................................. .................... .................... West Virginia ................................. North Carolina ............................... ................... South Carolina................................. ................... Percentage change from Oct. to Nov. 1937 In number In amount on payroll of payroll — 2.7 — 6.6 + 1 .1 + -4 — 5.7 — 1.6 — 7.3 — 2.8 — 6.8 — .3 — 2.4 Data on commercial failures, C o m m e r c ia l F a il u r e s : compiled by Dun & Bradstreet, show more insolvencies but lower liabilities in both the Fifth district and the United States in November 1937 than in November 1936. Failures in the district increased 18.2 per cent in com parison with 14.2 per cent in the United States, but the district decrease of 45.0 per cent in liabilities involved 3 MONTHLY REVIEW made a better comparison than the National decrease of 12.6 per cent. Number of failures PERIOD District U. S . November 1937................... .........52 786 768 October 1937................... .........38 November 1936................... .........44 688 Total Liabilities District U. S. $ 660,000 $ 10,078,000 564,000 9,335,000 1,201,000 11,532,000 11 Months, 1937...........................446 11 Months, 1936...........................435 $4,317,000 7,725,000 8,085 8,493 $102,303,000 134,965,000 A utomobile N ew Car R egistrations: New passenger automobiles sold in the Fifth Reserve district in Novem ber fell below the number sold in October, and dropped 10.8 per cent below the number sold in November last year. However, one of the leading manufacturers was late in bringing out 1938 models, and was consequently off the market entirely during most of November this year. Maryland dealers sold 5.7 per cent more cars in November this year than last, but all other Fifth district states reported lower registration figures. The following figures were collected by R. L. Polk & Company: Registration of New Passenger Cars STATES Maryland .......... D. of Col............. Virginia ............ West Va.............. No Carolina . . . So. Carolina . . . . District ........ Nov. 1937 3,186 1,741 3,204 2,082 3,263 1,519 14,995 Nov. 1936 3,013 2,297 3,388 2,226 4,039 1.839 16,802 Change 11 Months 11 Months 1937 1936 + 5.7 43,850 39,732 —24.2 26,789 29,969 — 5.4 47,704 45,903 — 6.5 34,238 34,276 — 19.2 50,359 43,467 — 17.4 25,722 21,586 — 10.8 228,662 214,933 Change + 10.4 — 10.6 + 3.9 — .1 +15.9 +19.2 + 6.4 Construction : Valuation of building permits issued in Fifth district cities in November exceeded October valu ation, but was 11 per cent less than in November 1936. There were 2,259 permits issued in 31 cities in Novem ber, compared with 2,681 permits in October 1937 and 2,853 permits in November 1936. Estimated valuation figures for November totaling $6,155,316 compared with $5,665,087 for October this year and $6,913,845 in No vember last year. Only 13 of the 31 cities reported higher valuation figures for November this year than last. Contract award figures for November, as compiled by F. W. Dodge Corporation, show a decrease of 6.5 per cent for the Fifth Reserve district in November in com parison with contracts awarded in November 1936. Construction Contracts Awarded STATES Maryland .................................... D of Col........................................ Virginia ....................................... West Virginia ........................... North Carolina ........................... South Carolina ........................... District ..................................... Nov. 1937 $ 3,749,200 2,436,800 5,179,600 1,142,700 4,339,200 2,731,200 $19,578,700 Nov. 1936 % Change $ 4,526,100 — 17.2 4,061,700 —40.0 3,539,800 +46.3 1,364,000 — 16.2 5,073,000 — 14.5 2,366,000 +15.4 $20,930,600 — 6.5 Coal M in in g : Bituminous coal production in Novem ber totaling 35,300,000 net tons showed an unseasonal decrease of 13.2 per cent from 40,675,000 tons dug in October, and was also 15.7 per cent below production of 41,879,000 tons in November last year. Lessened demand for coal in industrial plants and uncertainty as to rules and regulations to be announced by the Bituminous Coal Commission account for the decrease last month. Hamp ton Roads ports shipped 20,196,985 tons between January 1 and December 11, compared with 18,452,292 tons shipped in the same period last year. Official figures by states for October production this year and last are now available from reports of the National Bituminous Coal Commission: Soft Coal Production in Tons Oct. 1937 STATES West Virginia ....................... Virginia ................... Maryland ............................... 5th District ......................... United States ..................... Oct. 1936 Percentage Change 10,645,000 1,388,000 142,000 12,175,000 40,722,000 11,528,000 1,213,000 150,000 12,891,000 43,321,000 — 7.7 +14.4 — 5.3 — 5.6 — 6.0 Cotton T extiles : Cotton textile mills in the Fifth dis trict restricted operations further in November as inven tories continued burdensome. In the face of large stocks in the hands of dry goods jobbers, the mills received few forward orders and many orders previously placed were cancelled. However, in the second and third weeks of December sales of unfinished cloth increased and were substantially larger than curtailed mill output. Buying covered a wide range of fabrics and included purchases by industrial users as well as by manufacturers of clothing and household textiles. Reduced inventories of finishers and other users or processors of unfinished cloth were said to account for the increased volume of sales. Cloth prices apparently advanced more than cotton prices, giving mills a slightly wider margin. Consumption of cotton by states in the Fifth district in November 1937, October 1937, and November 1936, in bales, is shown below: MONTHS No. Carolina So. Carolina Virginia District 1937......................... 1937......................... 1936......................... 122,039 130,789 162,092 108,487 110,507 119,761 13,024 14,629 12,833 243,550 255,925 294,686 11 Months, 1937......................... 11 Months, 1936....................... 1,760,511 1,655,752 1,379,552 1,241,999 164,309 152,148 3,304,372 3,049,899 November October November Figures on spindle activity in October were released by the Bureau of the Census on November 20. There were 26,757,298 spindles in place in American mills on October 31, of which Fifth district mills had 12,345,270 spindles. Actual spindle hours of operation in October totaled 6,927,893,432 hours in the United States, South Carolina ranking first with 1,950,716,153 hours and North Carolina second with 1,578,785,028 hours. After trail ing Tennessee in September, South Carolina again took first place in October with 344 hours of operation per spindle in place, and Virginia with 343 hours ranked sec ond. North Carolina was eighth with 261 hours, and all Fifth district states exceeded the National average of 259 hours. R ayon : Rayon manufacturers and converters are both heavily over-stocked, but there are indications that the situation is gradually being corrected. Shipments of rayon yarns to mills decreased about 10 per cent from October to November. The Rayon Organon index of rayon shipments in November was 252 per cent of the 1923-25 average against 366 per cent in October and 714 per cent in November a year ago. The number of month’s supply of yarn on hand rose from 0.4 in November 1936 and 1.1 in October 1937 to 1.8 at the end of November this year. Weekly data recently collected by the National Rayon Weavers Association shows a typical, over-all November weaving rate of about 40 per cent of peak capacity for the month. The low production rate in rayon weaving is reducing cloth inventories and yarn stocks at weaving mills, and any material increase in cloth production would immediately be reflected in yarn sales by the rayon pro ducers. 4 MONTHLY REVIEW Cotton : Spot cotton prices on ten Southern markets fluctuated through a range of about half a cent per pound during the past month, showing a moderate rising ten dency, and on December 17 averaged 8.22 cents for mid dling grade in comparison with 7.74 cents on November 19. Growers continued to withhold much cotton from the market, and the Commodity Credit Corporation re ported that 3,820,000 bales of the 1937 crop had been pledged on Government loans prior to December 16. On December 8 the Department of Agriculture issued the final estimate on the 1937 cotton crop, 18,746,000 bales, the largest crop on record and 51.2 per cent above the 1936 yield of 12,399,000 bales. Yield figures for the three Fifth district cotton growing states were raised last month, and latest estimates give South Carolina 1,025,000 bales against 816,000 bales last year, North Carolina 775.000 bales against 597,000 bales, and Virginia 41,000 bales against 33,000 bales, a district total of 1,841,000 bales, or an increase of 27.3 per cent, in comparison with 1.446.000 bales picked in the Fifth district in 1936. Cotton Consumed and On Hand (Bales) Nov. Nov. 1936 1937 Fifth district states: Cotton consumed ................... 243,550 294,686 Cotton growing states: Cotton consumed ................... 418,395 526,612 Cotton on hatnd Nov. 30 in Consuming establishments . . 1,408,1401,584,285 Storage & compresses . . . . . 11,476,3748,325,595 United States: 484,819 625,794 Cotton consumed ................... Cotton on hand Nov. 30 in Consuming establishments . . 1,656,1091,800,597 Storage & compresses . . . . . 11,549,4488,386,166 796,985 689,815 Exports of cotton ....................... Aug. 1 to Nov. 30 This Year Last Year 1,086,595 1,167,627 1,885,479 .................................. ................................. 2,217,500 2,481,661 ................................. ................................. 2,433,765 2,302,942 South Carolina tobacco markets sold no tobacco in November, the season having closed in October. Season sales totaled 101,352,469 pounds for producers this year, at an average price of $20.83 per hundred pounds, compared with 69,841,461 pounds sold for $19.89 per hundred in 1936. North Carolina and Virginia sales figures last month and in November 1936 were as follows: Producers’ Tobacco Sales, Pounds Nov. 1936 Nov. 1937 74,626,112 89,221,026 North Carolina............. 29,468,662 29,575,265 Virginia (Flue-cured).. 1,658,676 796,852 (Fire-cured).. Nov. 1937 Smoking & Chewing Tobacco, Pounds ............. Cigarettes, Number ............... Cigars, Number ....................< Snuff, Pounds ......................... . R etail T rade in % Change 23,576,496 11,557,116,290 489,179,709 3,034,777 + .9 + 10.6 + .7 + 6.0 D epartment Stores : Net Sales Nov. 1937 comp, with November 1936 + 9.1 Richmond ( 3 ) ... Baltimore (8) + 1.1 — 1.2 Washington (6) Other Cities (14) + 4.0 District (29 ).. + .5 Same stores by States, with 28 stores added: Virginia (1 3 )... West. Va. (9 ).. No. Carolina (7) So. Carolina (9) District (57).. Nov. 1936 23,797,206 12,786,229,523 492,686,008 3,216,535 + 8.0 — 7.2 — 6.5 — 4.6 + .4 Stocks Net Sales Nov. 30, 1937 Jan. 1 to date compared with compared with same period Nov. 30 Oct. 31 1937 1936 last year + 6.6 + 11.4 + 6.8 + *9 + 2.8 + 3.3 .6 + »2 + + 4.1 + 6.2 + 7.6 + 2.5 + 3.6 + 2.6 Ratio Nov. collections to accounts outstanding November 1 33.5 82.7 27.7 31.8 30.0 [-7.7 -8.9 K6.0 + 9.9 + 4.2 2,079,928 T obacco M arketing : STATES The Bureau of Internal Revenue reports tobacco products manufactured in No vember 1937 and 1936 as follows: T obacco M anufacturing : Price Per Hundred 1936 1937 $22.40 $23.25 23.91 23.46 11.22 9.71 W holesale T rade, 59 F irm s : Stocks Net Sales Net Sales Nov. 30, 1937 Jan. 1 to date Nov. 1937 comp, with compared with compared with Nov. Oct. same period Nov. 30 Oct. 31 1936 1937 last year 1936 1937 — 3.3 — 12.3 + 9.5 Groceries (21). + 3.1 — 6.0 + 57.2 — 9.8 Dry Goods (7) — 17.9 — 12.0 + -1 + 13.9 — 12.1 + 4.6 Shoes (6 )........ — 31.4 —51.4 + 8.0 — 1.7 + 17.3 Hardware (1 2 ).— 6.7 — 15.7 + 8.5 + 6.9 — 4.8 Drugs (1 3 )... + 4.6 + 4.2 l in e s Ratio Nov. collections to accounts outstanding November 1 114.7 43.3 58.5 46.5 71.4 Note: All figures in Retail and Wholesale tables represent percentage changes except the collection ratios. Number of reporting firms shown in parentheses. A G R IC U LT U R A L CONDITIONS In the January 31, 1938, issue of the Monthly Review we shall publish a table showing 1937 crop yields and money values for the several states in the Fifth Federal Reserve district, in comparison with corresponding fig ures for some earlier periods. (Compiled December 21, 1937) MONTHLY REVIEW, December 31, 1937 FEDERAL RESERVE BANK OF RICHMOND SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) IN DU STRIAL PRODUCTION In November, volume of industrial production continued to decline sharply, and employment and payrolls also decreased. During the first half of Novem ber commodity prices declined further but for the past month they have been steady. PRODUCTION AND EMPLOYMENT Index of physical volume of production, ad justed for seasonal variation, 1923-1925 average =100. By mdnths, January 1929 to November 1937. FACTORY EMPLOYMENT AND PAYROLLS Indexes of number employed and payrolls, with out adjustment for seasonal variation, 1923-1925 =100. By months, January 1929 to November 1937. Indexes compiled by the U. S. Bureau of Labor Statistics. W HOLESALE P R IC E S Volume of industrial output, as measured by the Board’s seasonally ad justed index, declined from 103 percent of the 1923-1925 average in October to 90 percent in November, reflecting chiefly a sharp reduction in the manufac ture of durable goods. There was a further curtailment of activity at steel mills and output for the month was at a rate of 38 percent of capacity, a de cline of one-third from October. In the first three weeks of December steel production was at about 28 percent of capacity. Output of lumber and plate glass also declined substantially in November, and automobile production showed considerably less than the usual seasonal increase. Production of nondurable goods, which had decreased by a substantial amount earlier this year, declined further in November, reflecting a continued reduction in output of textiles and shoes, partly offset in the total by an increase in activity at sugar refineries. Output of minerals, as well as manufactures, declined in November. There were marked decreases in output of bituminous coal and in iron ore shipments, while crude petroleum production continued in large volume. Total value of construction contracts awarded, as reported by the F. W. Dodge Corporation, showed little change in November and the first half of December. Awards for privately-financed projects declined, reflecting chiefly a further reduction in residential building, while contracts for publicly-financed work increased. Employment and payrolls at factories showed an unusually sharp decline between the middle of October and the middle of November, and there were decreases also in the number employed in trade and other nonmanufacturing lines. The Board’s seasonally adjusted index of factory employment was at 94 percent of the 1923-1925 average in November as compared with a level of 102 last summer and 96 in November last year. In the steel, machinery, lumber, and textile industries the number employed decreased by substantially more than the usual seasonal amount, and there was some decline at automobile factories, although an increase is usual at this season. There were declines also in the seasonally adjusted indexes for most other lines, except foods and tobacco which showed little change. AGRICULTURE Department of Agriculture estimates recently issued indicate that most crops will be about the same size as forecast earlier but that cash farm income will be lower than had been anticipated, largely because of price declines both for crops and livestock. Cash income in 1937 is expected to be $8,500,000,000, as compared with $7,918,000,000 in 1936. The increase over a year ago is due primarily to increased income from marketings of wheat, tobacco, and fruits and to larger Government payments. DISTRIBUTION Index compiled by the U. S. Bureau of Labor Statistics, 1926=100. By months, 1929 to 1931; by weeks, 1932 to date. Latest figure is for week ending December 18, 1937. M EM BE R BAN K CREDIT Distribution of commodities to consumers, which earlier had been main tained, declined slightly in November. There was a slight decline in sales at department stores, and mail order sales decreased considerably, while sales at variety stores showed little change. Preliminary information for the first half of December indicates that department store sales increased by approximately the usual seasonal amount. Freight-car loadings declined by considerably more than the seasonal amount in November and the Board’ s adjusted index for that month was 71 percent of the 1923-1925 average as compared with 76 percent in October and an average of 81 percent in the first half of the year. The decline from Oc tober to November reflected principally marked decreases in loadings of coal and miscellaneous freight. COMMODITY PRICES The general level of wholesale commodity prices, which had declined sharply from the latter part of September to the third week of November, has shown little change since that time. Prices of nonferrous metals, leather, wool, textile yarns, and finished cotton goods have declined somewhat further in this period, while steel scrap, hides, rubber, cotton, print cloths, and bituminous coal have recently shown some advance. BANK CREDIT Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934, to December 15, 1937. Excess reserves of member banks showed a small decline but for the first three weeks of December remained somewhat over $1,000,000,000. The in crease in demand for currency during December has been smaller than usual, reflecting largely the effects of the recent sharp decline in business activity and payrolls. Total loans and investments of reporting member banks in 101 leading cities increased somewhat during the four weeks ending December 15, reflect ing a growth of $190,000,000 in holdings of United States Government obli gations, mostly in New York City. A factor in this increase was the purchase by banks of the December 15 issues of Government securities. Commercial loans, which had begun to decline in October, showed a further reduction.
