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MONTHLY

REVI EW

of Financial and Business Conditions

F if t h
Fed er a l

; .R h o d
ic mn

‘ yk.

3

If

Reserve
D is t r ic t

Federal Reserve Bank, Richmond, Va.

December 31, 1943

Business in November 1943
A

R E V IS E D index o f department store sales for the
they were 11 per cent below the peak month, which was
March o f this year.
Fifth District appears in the Review this month, and
this index for the month o f November shows a seasonally
The District’s textile mills will apparently be confronted
adjlisted level o f sales 13 per cent above October and 15
with a further increase in their cost o f production in the
per cent ahead o f a year ago. The November sales level
near future. The delegates o f the United Textile W ork ­
has been exceeded only during February 1943 when a
ers have authorized a strike vote in the mills o f North
clothing rationing rumor caused a wave of scare buying.
and South Carolina on, as yet, an unnamed date. The
This revised sales index, since February 1943, had moved
workers are seeking a 15 cents an hour increase with ad­
irregularly around a flat trend wrhich seemed to indicate
ditional increases o f 5 cents for the second shift and 10
cents for the third shift.
that the sales level had reached its wartime peak. There
were no rationing scares, however, in Novem­
Despite the impending shortage o f flue-cured
ber and the performance o f the index in that
tobacco, the District’s cigarette production in
month must open the question as to whether
November set a new high record. The N o­
VICTORY
the District’s sales level is topping out or con­
vember daily average index adjusted for sea­
BUY
tinuing to expand; O f course, the November
U N IT E D
sonal variation increased 7 per cent from O cto­
STATES
sales level may represent early Christmas buy­
ber and was 18 per cent above a year ago. The
WAR
I jo n d s
ing that will find reflection in a reduced level
crop indications point to a moderately lower
AND
STAMPS
o f sales in December.
level o f Virginia fire cured and sun cured to­
Wholesale trade in the District still gives
bacco, but larger crops o f burley this year than
every indication o f having reached its peak and
last year. The early sales in these markets,
the same conclusion appears to be drawable for
however, brought prices substantially above
the total amount of expenditures as reflected by bank
those last year, through marketings prior to the Christmas
holidays have been small.
debits. November coal production was again adversely
affected by work stoppages with the average daily output
Construction in the Fifth District has reached a rela­
in November 13 per cent below October and 16 per cent
tively low level since the Federal Government began taper­
under November 1942. Moderate improvement was re­
ing off on war projects. Building permits issued in 29
corded in the average daily consumption o f cotton during
Fifth District cities through November 1943 declined 44
the month of November from the previous month, but
per cent in valuation from figures for the like period in
continued to stand at 5 per cent below last year. Active
1942, and construction contracts awarded in the first 11
months of 1943 were 56 per cent below January-Novem­
spindle hours of the District’s mills in November, how ­
ber 1942 awr
ards.
ever, wxre only about 1 per cent below a year ago, but
BUSINESS IN D E X E S— FIFTH FEDERAL RESERVE DISTRICT
Average Daily 1935-1939=100
Seasonally Adjusted

Bank Debits ...............................
Bituminous Coal Production...
Building Contracts Awarded....
Building Permits Issued......... .
Cigarette Production ................
Gotten Consumption* .............
Department Store Inventories..
Department Store Sales............
Life Insurance Sales.................
Wholesale Trade—5 Lines.~
*Not Seasonally Adjusted.



% Change
November October September November
Nov. 1943 from
1942
1943
1943
1943
Oct. 1943 Nov. 1942
184
197
239
0
197
+ 7
142
150
148
124
—16
—13
134
442
163
+27
207
—53
36
43
64
—22
50
+16
174
165
182
194
4- 7
+18
— 5
154
161
146
153
+ 5
—6
161
—4
177
165
155
187
193
191
+13
+15
215
84
0
138
+43
120
120
- V
154
159
176
+13
174

2

MONTHLY REVIEW

Soil Conservation in South Carolina*
From the earliest settlements in America to compara­
tively recent years land was so abundant^ that farmers
found it easier to bring new land to cultivation as old
fields were exhausted than to maintain or rebuild the
fertility of the old land. American farmers consequent­
ly fell into slovenly habits, and did not maintain their
farms as they should have done. A s a result, much land
was allowed to wash away, and the fertility o f many fields
was exhausted by planting the same crop year after year.
South Carolina falls geographically into three belts. A p ­
proximately a third o f the state in the Northwest corner
lies at the foothills of the Blue Ridge Mountains, and is
quite hilly.
Another belt, running from McCormack
County on the north to Lancaster County, and from Allen­
dale to Dillon County on the south, is composed o f gently
rolling land, with only a few real hilly areas. The third
belt, embracing the Coastal counties, is low, flat, sandy
land. Farmers in the upper tier of counties began ter­
racing the land and contour plowing many years ago, but
they did not practice crop rotation. Terracing in the
other two-thirds of the state was practically unknown un­
til a few years ago.
Not many years ago a group of farmers in Lee and K er­
shaw Counties began a soil erosion program. One hun­
dred and fifty-eight farmers in these two counties started
their program by planting 20 tons of grass seed. Prior
to this time many farmers had feared to have grass on
their farms, but the experiment in Lee and Kershaw
Counties was so successful that the movement spread and,
by the end of 1942, 21,000 acres o f permanent pasture
had been improved by reseeding and fertilizing in South
Carolina, 18,965 acres of kudzu had been set out, grass
for permanent hay had been planted on 7,070 acres, and
grass meadow strips for hay and to serve as terrace out­
lets had been established on 12,145 acres. Terracing had
been done on 154,755 additional acres, and trees had been
set out on 21,291 acres. Farmers themselves bought and
planted 9,153,961 trees, and set out 15,908,798 trees which
were furnished by the Soil Conservation Service. On
October 31, 1943, district conservation farm plans had
been written for 9,568 farms in South Carolina, cover­
ing a total o f 1,648,403 acres.
In the erosion control program, there are a number of
steps which farmers should take. Terracing prevents the
development o f ditches across the fields, and the rows
developed in contour plowing act as miniature terraces.
On fields in which erosion has already begun, ditches
should be dammed at frequent intervals, and probably
some top cover such as grasses, lespedeza, and kudzu
should be planted, partly to stop further erosion andpartly to restore fertility by furnishing the land a coating
o f humus. Kudzu is a vine of rapid growth, and is one
o f the best perennials to stop erosion. Stubble fields
should be left unplowed until it is time to cultivate them
again. Land which appears unlikely to develop into fields
suitable for crop raising should be developed as forests or
as pature or hay land. It is unwise to allow any land on
a farm to lie bare of some growing cover.




Soil conservation or restoration goes hand in hand with
erosion control, but the methods used in soil development
are different. The old custom o f planting cotton on the
upland and corn on bottom lands year after year must be
discontinued. By cooperation with County Agents and
agricultural colleges, farmers can find out the effects that
various crops have on the soil, and crops on any individual
field should be varied frequently enough to restore, by
the use o f a suitable crop, valuable soil elements which
have been exhausted or appreciably reduced by preceding
crops. By careful crop rotation, fertility o f soil can be
kept at a high level, and the use o f commercial fertilizers
drastically reduced. The value o f kudzu and sericea les­
pedeza for erosion prevention and maintenance o f soil
fertility was proved last June at the Southern Piedmont
Experiment Station at Watkinsville, Georgia.
During
that month the rainfall totaled 8.59 inches on the 11 per
cent slope plots on Cecil clay (red ) loam, where the run­
off for four year kudzu amounted to only .8 per cent and
soil losses none. For fourth year sericea the runoff was
7.9 per cent and soil loss .04 tons per acre. For fourth
year volunteer Kobe lespedeza the runoff was 11.6 per
cent and soil loss .33 o f a ton per acre. It was observed
that where cotton had been planted for four years in
succession, the runoff was 43.1 per cent and soil loss was
15.32 tons per acre.
In the face o f the great success farmers have had with
the erosion and soil conservation programs, farmers are
being urged to plan their operations under the guidance o f
those who have studied proper conservation measures.
Farmers who have used these practices have found from
experience that increased production, with added income,
always results. Ernest Carns, South Carolina’s Soil Con­
servationist, gives the following answers to the question,
“ What practices are generally agreed upon that are ap­
plicable at the present time for conservation and which
can be applied, with minimum assistance, to the increase
of our production goals in 1944?”
1. Seeding lespedeza or crotalaria or small grain of
suitable soil type.
2. The establishment of appropriate livestock graz­
ing systems for the farms, which may include the
renovation of all pastures, the planting o f a suf­
ficient amount o f annuals or perennials for tem­
porary grazing.
3. Use every idle acre on the farm for the produc­
tion o f food or feed crops or trees.
4. Plant washed places or other areas o f the farm to
perennial crops o f lespedeza or kudzu, to stop
further erosion.
5. Plan for the production, harvesting and care of
legumes and other seed for the farm.
6. T o partially offset the fertilizer shortage, take
special care o f all farm manures and construct
synthetic compost heaps where materials are avail­
able.
*This article was prepared in collaboration with Jack Wooten, Assistant
Director of Information, Farm Credit Administration, Third District,
South Carolina.

MONTHLY REVIEW

3

Developments in the Rayon’[Industry
The rayon industry has emerged from adolescence and
bloomed into a husky and vigorous youth, though only a
short time ago it was still in swaddling clothes, attempt­
ing to grow up under the guise o f an alias. B y 1927
rayon had relegated silk to fourth position in the domestic
consumption o f textile fibers, and by 1938 it had usurped
the second position from wool, a position it has since held
except for the single year 1941. Rayon is still very young
in its growth, yet its adaptability to a wide range o f uses
gives it new horizons as yet only imaginable. Even though
rayon has second preference among the textile fibers, it is
still a very poor second; King Cotton accounts for over
80 per cent o f the total domestic textile usage.
The growing importance o f rayon in domestic prefer­
ence, however, does not sound the death knell o f cotton
fiber, as it is entirely possible that use o f both cotton and
rayon can expand simultaneously. N o clearer evidence
could be found in support o f this prospect than the record
of past consumption. In 1920, cotton accounted for 90
per cent o f the consumption o f all textile fibers in the
United States, yet in that year the total consumption o f
cotton was only 2,828 million pounds; whereas in 1942
cotton consumption was but 82 per cent o f all fibers
though consumption had risen to 5,617 million pounds.
Although the two fibers may at times compete for the
same market, it is probable that in the main they will be­
come complimentary, each creating markets for the other.
In 1943 rayon production of all kinds in this country
will be in the neighborhood o f 658 million pounds. It
would have been much larger had it been possible to ex­
pand production facilities, but even so an output o f 658
million pounds will be 4 per cent larger than that o f 1942
and 73 per cent larger than that o f the last prewar year,
1939.
It is interesting to note that of the indicated gain o f
277.7 million pounds between 1939 and 1943, staple fiber
accounted for 39 per cent, viscose and cuprammonium
filament yarn 38 per cent, and acetate filament yarn 23
per cent. In this same period the percentage increases in
output show the trends that are in evidence. Staple fiber
production more than tripled, acetate filament yarn rose
65 per cent, while viscose and cuprammonium filament
yarns increased 45 per cent. Staple fiber is used in com­
bination with wool and cotton to a much larger extent than
filament yarn and the growth o f 210 per cent in the short
period since 1939 is significant o f its possibilities.
; W ar has made important demands on the production o f
rayon, for sudi uses as fragmentation and cargo chutes,
uniform linings, powT
der bags, self-sealing gasoline tanks,
and as alternate materials for replacement of those not
now available or available in inadequate supply. W ar has
also made it desirable to supply the Southern Republics
with rayon under the Good Neighbor program, but the
rayon industry's outstanding contribution to the war e f­
fort will be rayon tire cord. This latter use of rayon has
amounted to about 80 million pounds this year, and will
reaxh 144 million pounds in 1944, though new capacity
and conversions are scheduled to be in place by July 1
for the production of 235 million pounds. A t the present




time Rayon Organon estimates that the above rated and
allocated uses require about one-half o f the viscose and
cuprammonium yarns produced and one-sixth the acetate
output.
The latest information on the tire cord program calls
for an approximate annual production capacity o f 235,000,000 pounds, which shall be devoted to this product
under W .P .B . directive. It appears that about 161 mil­
lion pounds o f this tire cord capacity represents conver­
sions o f existing facilities and about 74 million pounds
represents new capacity. O f the new capacity o f 74 mil­
lion pounds, 23 million pounds were brought into produc­
tion by the installation o f new machinery in existing plants
and 51 million pounds by new construction that will be
installed by June 30, 1944. The tire cord program is all
in viscose filament yarn, and it does not seem likely that
more than 100 million pounds o f capacity is at present
exerted toward the production o f tire cord yarns. Thus,
between now and June 30 the civilian uses o f rayon would
be reduced by me amount o f production diverted from the
facilities capable o f turning out 84 million pounds yearly.
W ith the mentioned proportions o f rayon production being
used in the war effort, and the further conversions under
way, it appears that in 1944 there will still be left for
civilian consumption an amount about equal to that in the
years 1936 or 1937.
The rubber tire industry spokesmen believe that the
rayon tire cord will be used in peacetime mainly in the
heavy duty tires, and that the cotton cord will continue to
be used for the general run o f tires. The rayon industry
expects to retain in peacetime a good share o f the new
markets that have developed in wartime, but expects to
lose much o f the hosiery market that it now has. Expan­
sion o f the demand for rayon is expected after the war in
those products already established, and, in addition, many
new uses are expected to be developed in which rayon will
be used in combination with other fibers.
Some o f the materials used in rayon manufacture are
becoming critically short, and labor is not sufficiently
abundant to give optimum plant efficiency. In the acetate
division, acetic anhydrite is 50 million pounds short o f
total requirements this year and is estimated to be 86
million pounds short for 1944. Allotments o f this ma­
terial and o f acetic acid were lowered in September to 80:
per cent o f requests, but raised to 90 per cent in October.;
Requests for cellulose acetate used in the manufacture!
of rayon were met in full during October, as were the!
requests for chemical cotton pulp used in the manufac­
ture o f viscose high tenacity and cellulose acetate yarns
and staple fiber. The tension in the supply o f bleached;
sulphite wood pulp has been accentuated recently by forced!
closings o f three pulp mills occasioned by a lack o f logs.
Pulp to be used for manufacture o f rayon war materials
will undoubtedly be forthcoming in the required amounts,
but for use in other products it is still to be determined
whether the paper industry will have to compensate for
the pulp dearth or whether this dearth will be shared pro­
portionately between the paper and rayon industries. It
should not be expected that conditions which are affecting

MONTHLY REVIEW

4

the pulp supply will permit a sufficient output to cover all
requirements, but the W P B may find it desirable in view
o f a short supply o f cotton goods to allocate full require­
ments to the rayon industry based on its degree o f essen­
tiality. W ith all factors taken together, it would appear
that operations at rayon plants will be continued as near
to practical capacity as the supply o f labor and materials
will permit.
The rayon industry is big business despite the fact that
its total products were valued at only $247 million in 1939.
It requires a large amount o f capital to construct and equip
a rayon plant, and its operation requires highly skilled per­
sonnel. Nearly 90 per cent of the value o f the industry’s
products is made in seventeen plants, the individual an­
nual output o f which is in excess of $5 million; the re­
maining twelve plants contribute 10 per cent o f the value
o f products. In 1939 there were no plants which em­
ployed fewer than 250 workers, while those employing
more than 1,000 accounted for 85 per cent o f all the wage
earners in the industry.
There are only seventeen companies engaged in the in­
dustry and these operate twenty-nine plants. N o very
accurate figures exist as to the capacity o f these twentynine plants, but since the W ar Production Board felt it
essential to expand capacity to effect the production o f tire
cord, and since there has been little impediment until re­
cently in the securing of the materials o f production and
labor, it may be assumed that production in 1943 was near
practical capacity. By stretching here and there, an out­
put o f 700 million pounds o f rayon might be considered as
the industry's capacity.
In addition to these approximate production capacity
figures, known expansions to be installed and in operation
by July 1, 1944, amount to 74 million pounds, and W P B
directives have been issued to companies whose figures
are not included in the total for additional expansions o f
capacity. The amounts o f these latter expansions are not
known, nor is it ascertainable whether these extensions
are to be made in the plants located in this District, or
elsewhere.

Assuming a production capacity for the industry o f 700
million pounds, it is estimated that 365 million pounds or
52 per cent o f this capacity is in ten plants o f the Fifth
Federal Reserve District, located as follow s:
L o c a t io n

of

R ayon P lants

in

the

F if t h F ederal

R e s e r v e D is t r ic t

Cumberland, Md.
Covington, Va.
Front Royal, Va.
Pearisburg, Va.
Richmond, Va.
Roanoke, Va.
Waynesboro, Va.
Nitro, W . Va.
Parkersburg, W . Va.
Enka, N. C.
These ten rayon plants give employment to something
like 30,000 people, and distribute an annual payroll o f
around $68,000,000, but they do something more than this.
All o f the plants in the District, with the exception o f one
at Richmond, are located in or near small cities, mostly in
the mountainous areas. These plants have become vir­
tually the lifeblood o f their communities, and in turn the
stability o f the labor force o f these communities has been
an asset to the companies, the value o f which is incalcu­
lable but finds its reflection in the income accounts.
That the plan o f locating rayon plants in the smaller
Appalachian communities has proven successful is attested
by the fact that the principal expansions in the industry in
the past decade have been there. This District, further­
more, is in a preferred position to secure a large share o f
the future growth o f the rayon industry because a large
part o f the consumption o f its products are in the weaving
and knitting mills which are not far rem oved; because
there are abundant locations filling all the needs o f a
plant site; and because public officials view an industrial
plant as a creator o f employment rather than tax revenues.

BUSINESS INDEXES ~ FIFTH FEDERAL RESERVE DISTRICT
( 1935- 39= 100)
ADJUSTED___________________

Oct.
1943
B AN K DEBITS ................... ..................
DEPT. STORE SA L E S........................
ELECTRIC POW ER PROD...............
LIFE INS. SA L E S................................
BITUMINOUS COAL PROD.............
BUILDING CONTRACTS ...............
BUILDING PERMITS .....................
COTTON CONSUMPTION ...............
FURNITURE ORDERS ...................
FURNITURE SHIPMENTS ...........
FURN. UNFILLED ORDERS...........
W HOLESALE TR. 5 L I N E S . . . . . .
Drugs .....................................................




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

...

183
216
120
142
163

146
117
. = 112
381
,. . 176
213
136
, . . 186
115
, . , 191

Sept.
1943
239
196
220r
138
150
134
36
154
95
116
307
159
205
124
167
105
174

Aug.
1943

Oct. 1943
% chg. from
Oct.
Last
1942
Mo.

207
206
216
131
152
122
81
147
140
120
355
166
214
141
170
123
175

187
170
193
93
140
358
42
156
344
136
520
151
196
144
149
132
208

— 18
- 7
- 2
— 13
5
—
+ 22
+ 78
—
5
+ 23
—• 3
+ 24
+ 11
4
+
+ 10
+ 11
+ 10
+ 10

__________________ NOT ADJUSTED

Last
Year

Oct.
1943

Sept.
1943

Aug.
1943

Oct.
1942

5
+
8
+
+ 12
+ 29
1
+
— 54
+ 52
—
6
- 66
— 18
— 27
+ 17
4* 9
6
+ 25
— 13
8

210
219
218
119
147
152
57
154
100
137
371
187
217
184
193
128
205

230
201
210
122
154
133
38
162
115
153
425
181
215
194
185
122
254

188
156
213
125
158
119
84
155
166
149
479
173
202
172
175
124
278

207
211
194
92
151
333
38
171
308
173
525
168
208
203
161
152
232

—

Oct. 1943
% chg. from
Last
Last
Mo.
Year
— 9
+ 9
+ 4
— 2
— 5
+ 14
+ 50
— 5
— 13
— 10
— 13
+ 3
+ 1
— 5
+ 4
+ 5
— 19

+ 1
+ 4
+ 12
+ 29
— 3
— 54
+ 50
— 10
— 68
— 21
— 29
+
+
—
+
—
—

11
4
9
20
16
12

MONTHLY REVIEW

5

FEDERAL RESERVE BAN K OP RICHMOND

DEBITS TO IN D IVID U AL ACCOUNTS

(All Figures in Thousands)

000 omitted

A
Change i n . mount from
12-16-42
11-17-43
+ 125,451
— 42,564
+
2,660
—
1,019
+ 128,111
— 43,583
+
3,415
+
200
—
458
—
2
+ 84,180
+ 254,467
— 49,805
—
4,807
— 32,240
—
3,875
+ 26,344
+ 116,388
+ 220,124
+ 66,518
+ 257,424
+ 84,378
+ 18,980
+ 27,737
—
2,264
—
1,941
+ 402,251
+ 66,591

December 15
1943
ITEMS
$1,062,681
Total Gold Reserves...................
17,980
$1,080,661
Total Reserves ......................
3,650
Bills Discounted .......................
236
Industrial Advances .................
$ 615,585
Gov’ t Securities, Total............. . . .
129,782
Bonds ........................................
55,287
Notes ........................................
178,565
251,951
Bills ..........................................
Total Bills & Securities.............
$ 619,471
Uncollected Items ..................... .. . .
$ 156,823
16,317
$
Other Assets .............................. . . .
$1,873,272
Total Assets .............................
$1,125,791
Fed. Res. Notes in Cir................
$ 608,441
Deposits, Total .................... . ..
522,579
Members’ Reserves .................
23,770
U. S. Treas. Gen. Acc..........
57,986
4,106
Other Deposits .......................
... $ 119,694
Deferred Availability Items
346
Other Liabilities ....................... ... $
19,000
Capital Accounts ....................... .. . $
$1,873,272
Total Liabilities .....................

+ 50,072
+
9,659
+
2,729
+
4,849
+
2,910
—
829
+
6,617
+
78
+
165
+ 66,591

+
+
+
+
+
—
+
—
+
+

349,097
45,103
1,933
23,214
26,258
6,302
5,859
108
2,300
402,251

41 REPORTING MEMBER BANKS—■5TH DISTRICT
(All Figures in Thousands)
ITEMS
Total Loans ....................................
Bus. & Agric. Loans.................
Real Estate Loans.................
All Other Loans.........................
Total Security Holdings...............
U. S. Treas. Bills ..................... .
U. S. Treas. Certificates ...........
U. S. Treas. Notes .....................
U. S. Gov. Bonds .......................
Obligations Gov. Guaranteed.
Other Bonds, Stocks & Sec.. . .
Cash Items in Process of Col.. . .
Due From Banks...........................
Currency & Coin............................
Reserve with F. R. Bank............
Other Assets ....................................
Total Assets ....................................
Total Demand Deposits.................
Deposits of Individuals .............
Deposits of U. S. Gov.................
Deposits of State & Local Gov..
Deposits of Banks .....................
Certified & Officers’ Checks. . .
Total Time Deposits .....................
Deposits of Individuals.............
Other Time Deposits.................
Liabilities for Borrowed Money. .
All Other Liabilities.....................
Total Liabilities

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

December 15
1943
$ 275,454
134,029
49,579
91,846
$1,342,077
131,952
265,744
168,755
674,348
45,203
56,075
$
98,944
$ 158,582*
$
37,481
$ 277,447
$ 65,667
$2,255,752
$1,832,815
1,094,971
230,184
75,477
404,714
27,469
$ 242,616
225,889
16,727
$
1,500
$
66,671
$ 112,150
$2,255,752

Change in Amount from
12-16-42
11-17-43
—
5,139
— 10,837
— 11,229
+
1,019
—
945
—
185
— 11,671
+
7,035
— 37,101
+ 408,748
+• 38,136
— 15,251
+ 174.384
— 12,835
+ 42,581
—
1,553
+ 174,411
—
8,350
—
6,368
—
19
— 14,396
+
907
+
2,403
—
1,057
— 48,542
+
370
+
2,571
—
41
— 33,194
155
+ 10,874
—
375
+ 337,721
— 49,196
+ 301,344
— 45,908
+ 176,201
+ 49,265
+ 139,692
— 103,272
+
793
—
7,266
—
1,121
— 12,805
+
8,427
+
5,522
+ 28,318
—
811
—
1,225
+ 23,887
+
4,431
+
414
—
1,500
+
1,500
—
1,996
+
699
+
1,019
+
5,86*0
+ 337,721
— 49,196

♦Net figures, reciprocal balances being eliminated.

M U TU AL SAVINGS BAN K DEPOSITS
9 Baltimore Banks
Total Deposits

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

Nov. 30, 1943
$256,586,779

Oct. 31, 1943
$254,780,900

Nov. 30, 1942
$229,475,144

% Change
from
Nov. ’42

Nov.
1943
Dlst. of Columbia
Washington ...........
Maryland
Baltimore .................
Cumberland ..............
Frederick ...............
Hagerstown ............
North Carolina
Asheville ...................
Charlotte ...................
Durham .....................
Greensboro ...............
Kinston .....................
Raleigh ...............
Wilmington ...............
Wilson .........................
Winston-Salem ........
South Carolina
Charleston .................
Columbia ...................
Greenville .................
Spartanburg .............
Virginia
Charlottesville .........
Danville .....................
Lynchburg ...............
Newport News .........
Norfolk .....................
Portsmouth ...............
Richmond .................
Roanoke .....................
West Virginia
Bluefield ...................
Charleston .................
Clarksburg ...............
Huntington ...............
Parkersburg .............
District Totals . . . . . . .

11 Mos.
1943

% Change
from
11 Mos. ’42

$ 446,411

+

8

$ 5,027,549

+ 10

735,375
11,500
10,862
16,424

+
+
+
+

17
17
25
27

7,758,177
128,360
116,749
170,091

+ 17
+ 14

20,226
107,973
89,127
32,007
9,733
48,912
34,576
17,933
78,356

+
—
+
+
+
+
—
+
+

13
19
48
19
20
16
1
30
20

228,244
1,244,495
719,663
350,791
106,427
568,515
406,493
146,565
755,124

37,420
54,128
36,723
20,873

+
+
+
—

7
8
5
2

430,530
548,375
412,938
226,177

13,797
31,551
22,186
23,181
115,464
14,957
333,366
38,101

+
+
+
—
+
+
+
+

25
24
14
13
2
3
23
8

132,805
186,491
216,763
278,490
1,313,017
178,017
3,308,523
405,805

+ *6
+
—
+
+

10
8
11
17

— *5
+ 28

+ 17
+ 9
+ 13
+ 10

+

19,935
+ 14
222,012
73,287
+ 7
824,756
14,452
+ 27
145,195
25,809
+ 6
291,815
14,185
+ 15
156,798
$2,548,830
+ 12
S27,005,750
Cumulative figures for 12 cities not comparable with 1942 data.

*6
6

+ 12
+ *9
+ 12

COTTON CONSUMPTION— FIFTH DISTRICT
In Bales
MONTHS
November 1943...................
October 1943...................
November 1942...................
11 Months, 1943...............
11 Months, 1942...............

N. Carolina S. Carolina
230,627
176,086
218,813
168,506
230,729
179,940
2,562,989
1,957,321
2,658,747
2,048,347

Virginia
20,695
20,011
21,355
228,672
243,716

District
427,408
407 330
432,024
4,748,982
4,950,810

COTTON CONSUMPTION AND ON HAND— BALES
Nov.
Nov.
1943
1942
Fifth District States :
Cotton consumed.................
427,408
432,024
Cotton Growing States:
Cotton Consumed ...............
754,684
791,974
Cotton on hand Nov. 30 in
Consuming establishments 2,105,054 2,049,592
Storage & compresses *. 12,73*0,757 13,358,499
United States:
Cotton consumed .................
858,813
912,920
Cotton on hand Nov. 30 in
Consuming establishments 2,388,772 2,409,313
Storage & compresses.. 12,936,375 13,642,209
Spindles active ........................ 22,623,408 22,978,466

Aug. 1 to Nov. 30
1943
1942
1,676,671

1,782,665

2,991,594

3,262,966

3,419,391

3,770,653

COMMERCIAL FAILURES
R AYON Y A R N D ATA

Number of FailuresTotal Liabilities
PERIODS
District
U. S.
District
U. S.
November 1943...................
2
155
$ 110,000
$ 2,402,000
October
1943...................
0
169
0
3,785,000
November 1942...................
14
585
131,000
5,245,000
11 Months, 1943...................
45
2,876
$1,100,000
$43,284,000
11 Months, 1942................... 276
8,899
4,198,000
93,813,000

Nov. 1943

Oct. 1943

Nov. 1942

Rayon Yarn Shipments, Lbs___ . .
Staple Fiber Shipments, L b s... . .

42,800,000
13,990,000

43,900,000
13',900,000

38.800.000
12.400.000

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

2,600,000

7.600.000
2.500.000

8,100,000
4,400,000

Source: Dun & Bradstreet

Source : Rayon Organon




MONTHLY REVIEW

6

SOFT COAL PRODUCTION IN THOUSANDS OF TONS

BUILDING PERMIT FIGURES
Fifth Federal Reserve District
November 1943
Total Valuation
November 1943
November 1942
Maryland
Baltimore ........... .........................
.........................

$

654,595
20,080
0
4,005
12,934

$

296,525
11,920
195
97,340
3,405

$

4,117
5.300
853,742
400
27,395
58,917
19,582

$

6,577
5,735
398,450
5,700
30,200
95,629
5,538

$
'

19,678
1,160
6,615

$

$

3,065
23,931
6,610
2,450 '
16,021
38,985
825
2,180
24,120

$

84,442
3,990
3,300
26,245

$

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

Salisbury .............
Virginia
Danville ...............
Lynchburg ...........
Norfolk ...............

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

.........................
...........................
.........................
.........................
Portsmouth .......... .........................
...........................
Roanoke ............... ...........................
West Virginia
Charleston ........... ...........................
...........................
Huntington ........ ...........................
North Carolina
...........................
Charlotte ............. ...........................
Durham ............... ...........................
Greensboro ........ ...........................
............................
Raleigh ............... ...........................
............................
Salisbury ............. ...........................
Winston-Salem .. ...........................
South Carolina
...........................
. . . . 7 7 ...............
.........................
...........................

$

Dist. of Columbia

Nov.
1943
11,550
1,462
114
13,126
43,675
30

CONSTRUCTION
October
1943

Maryland ............... $13,954,000
1,934,000
Dist. of Columbia.
Virginia ................. 13,235,000
1,357,000
West Virginia . . .
3,597,000
North Carolina . . .
3,166,000
South Carolina . . .
Fifth District . . $37,243,000

11 Mos.
1943
145,398
18,496
1,600
165,494
534,080
31

% Chg. from
11 Mos. ’ 42
+ 1
+ 1
— 10
+ 1
+ 1

RETAIL FURNITURE SALES
Percentage Changes in Nov. and 11 Mos. 1943
Compared with Compared with
November 1942 11 Mos. 1942

STATES
Maryland (5)* .......................
Dist. of Columbia ( 5 )* ........
Virginia (26)* .......................
West Virginia (1 2 )* ...............
North Carolina (1 9 )* .............
South Carolina (1 8 )* .............
Fifth District (8 5 )*...........

11,430
648
4,183
3,435
11,717
153,807
35,783
8,539
2,260
465
1,412
21,027

— •
>
+ 1
— 9

+ ^
+ ^

+ 6
— 1

INDIVIDUAL CITIES
Baltimore, Md. ( 5 )* ...............
Washington, D. C. ( 5 ) * . . . .
Lynchburg, Va. ( 3 ) * .............
Richmond, Va. ( 7 ) * ...............
Charleston, W . Va. ( 4 ) * . ..
Charlotte, N. C. ( 5 )* .............
Winston-Salem, N. C. (3 )*.
Columbia, S. C. ( 5 ) * .............

_
110,160
5,740
8,525
6,508

— 3
+ 1
— 1
2
— 2
0
+ 15
+ 9

_

— 19
— 14
2
+ 6
+ 8
— 3
— 6

_

—
—
—
+
+
+
+

19
14
11
6
1
1
16

+

1

♦Number of reporting firms.

DEPARTMENT STORE TRADE

$ 2,705,172
$75,918,011

$ 3,125,619
$42,704,178

Richmond
Baltimore Washington Other Cities
District
Percentage change in Nov. 1943 sales, compared with sales in Nov. 1942:
+ 26
+15
+16
+31
+17
Percentage change in 11 months’ sales, compared with 11 mos. in 1942:
+ 22
+ 11
+
7
+ 26
+ 12
Change in stocks on Nov. 30, 1943, from stocks on Nov. 30, 1942:

CONTRACTS AW ARDED

— 1

10 Mos. % Chg. from
1943
10 Mos. ’ 42

% Chg. from
Oct. 1942
63
52
30
33
78
23

$ 88,206,000
26,260,000
147,636,000
16,321,000
78,588,000
42,340,000

—
—
—
—
—
—

— 54

$399,351,000

55
73
58
70
30
57

Nov.
1943
Smoking & chewing to­
bacco (Thousands of lbs.)
Cigarettes (Thousands) . .
Cigars (Thousands) . . . . .
Snuff (Thousands of lbs.)

0

— 8

— 1

— 4

Change in outstand’g orders Nov. 30, 1943, from orders on Nov. 30, ’ 42 :
+ 94
+184
+141
+ 93
+142
Change in receivables, Nov. 1, 1943 compared with Nov. ], 1942:
—
3
—
8
— 23
—
6
— 14
Percentage of current receivables as of Nov. 1, 1943, collected in N o v .:
62(5J)
61(59)
63(58)
61(60)
62(58)
Percentage of instalment rec’v’bles as of Nov. 1, 1943, collected in N ov .:
33(31)
42(32)
28(21)
34(26)
32(25)

— 56

—
—
—
+
—
—

Note: 1942 collection percentages in parentheses.
Maryland Dist. of Col.
Virginia West Va.
N . Carolina, S. Carolina
Percentage change in Nov. 1943 sales from Nov. 1942 sales, by States:
+ 15
+16
+21
+13
+24
+25
Percentage chg.. in 11 mos.’ sales, 1943, compared with 11 mos. in 1942:
+ 12
+ 7
+20
+12
+23
+28

TOBACCO M ANUFACTURING
% chg. from
Nov. 1942

% change
from
11 Mos.
1943 11 Mos. ’ 42
W HOLESALE TRADE, 205 FIRMS

25,499
,323,704
428,942
3,292

+
+
—
+

12
19
10
8

237,608
234,938,270
4,757,383
42,198

—
+
—
+

9
9
14
13
LINES
Auto supplies (11)*

AUCTION TOBACCO MARKETING
Producers Tobacco Sales, Lbs. Price per hundred
STATES
Nov. 1943
Nov. 1942
1943
1942
North Carolina .........
91,338,0-63>
36,934,906
$42.96
$41.66
Virginia ....................... ...........38,030,169______16,516,311______42.93_____ 43.92
129,368,232
53,451,217
$42.95
$42.36
Total ........................
Season through* .
681,512,224
727,154,161
40.63
39.55
♦Includes South Carolina season sales.




% Ghg. from
Nov. 1942
— 9
— 9
— 10
— 16
— 8
..

$ 1,362,319

District Totals . .........................
11 Months ........ ...........................

STATES

REGIONS
West V ir g in ia ...............
Virginia .........................
Maryland .......................
5th District ...............
United States ...........
% in District...............

.........

Drugs & sundries ( 7 ) * . . . .
Dry goods (7)* ...................
Electrical goods ( 9 )* ...........
Groceries (64)* ...................
Hardware (10)* ...................
Industrial supplies (9 )*. . . .
Paper & products ( 9 ) * . . . .
Tobacco & products ( 5 ) * . ..
Miscellaneous (71)* .............
District Average (2 0 5 )* ..

Net Sales
Stock
Ratio Nov.
Nov. 1943
Nov. 30, 1943 collections
compared with compared with
to acct’s
Nov.
Oct.
Nov. 30 Oct. 31 outstand’g
1942 , 1943
1942
1943
Nov. 3
— 4
+ 13
— 12
+ 6
99
1*
— 16
l)
+ 21
+ 10
—
9
104
— 16
— 22
— hi
+ 6
80
— 15
+ 2
— 13
+ 5
24
+ 20
— 3
+ 6
158
+ 3
—
9
— 10
+ 10
+ 5
90
— 7
— 8
— 8
85
+ 2
—
1
+ 5
— 15
— 4
94
+ 9
— ’4
+ 5
+ *3
107
+ i
- 6
+ 6
+ 2 — 6
102

—

Source: Department of Commerce
^Number of reporting firms.

7

MONTHLY REVIEW

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

Industrial activity was maintained at a high level in November and the
early part of December. Value of retail sales during the Christmas buying
season has been larger than last year’s record sales.

INDUSTRIAL PRODUCTION

INDUSTRIAL PRODUCTION

1939

1941

1943

1939

1941

1943

Federal Reserve indexes. Groups are expressed
in terms of points in the total index. Monthly
figures, latest shown are for November 1943.

INCOME PAYMENTS TO INDIVIDUALS

1939

I94i

1943

1939

1941

1943

Based on Department of Commerce estimates.
Wages and salaries include military pay. Monthly
figures raised to annual rates, latest shown aj*e
for November 1943.

MEMBER BANKS IN LEADING CITIES

Industrial production in November was at 247 per cent of the 1935-39
average, the same as in October and 2 points higher than in September according
to the Board’s seasonally adjusted index. Further increases in munitions pro­
duction in November were offset in the total index by smaller output of coal
and steel.
The reduction in steel output from the high October rate was small and
reflected partly a decline in war orders for some types of steel products. A c­
tivity in the machinery and transportation equipment industries continued to
rise in November. The Board’s machinery index, which had been stable from
April to August, advanced 5 per cent in the past 3 months as a result of increases
in output of electrical equipment and other machinery, which includes aircraft
engines.
Total output of nondurable goods in November continued at the level of
recent months. Activity in woolen mills showed little change as increased
production of civilian fabrics, resulting from the lifting of restrictions on the
use of wool, offset reduced output of military fabrics. Production of manufac’ tured food products continued at a high level, Federally inspected meat pro­
duction in November was one-fourth larger than a year ago. Newsprint con­
sumption in November declined to a level 15 per cent below the same month
last year. Output in the rubber products and petroleum refining industries
continued to increase.
Coal production increased sharply in the latter part of November but for
the month as a whole bituminous coal output was down 9 per cent from October
and anthracite 19 per cent. In the early part of December output of bituminous
coal was at the highest rate in many years.

DISTRIBUTION
Notwithstanding a reduced selection of merchandise, department store
sales in November were about 10 per cent greater than the large volume of
sales in November 1942, and in the first three weeks of December sales were
about the same as a year ago. Value of department store stocks at the end of
October was reported to be 9 per cent smaller than a year ago and it is esti­
mated that, contrary to' the usual seasonal movement, stocks declined in
November.
Freight carloadings were maintained in large volume in November and
in the first half of December. Loadings of coal during the four weeks ending
December 11 were at the highest rate in many years, following a sharp drop
in the first half of November. Shipments of grain and livestock were in un­
usually large volume for this time of year.

COMMODITY PRICES

ernment and interbank deposits and collection
items. Government securities include direct and
guaranteed issues.
Wednesday figures, latest
shown are for Dec. 15.

MEMBER BANK RESERVES AND R ELA TED ITEMS




Grain prices continued to advance from mid-November to mid-December
and reached levels more than one-fourth higher than a year ago. Wholesale
prices of other farm and food products showed little change, while prices of
various industrial commodities, including coal, were increased somewhat.
The cost of living, whch had increased .4 per cent in October, declined .2
per cent in November, according to the Bureau of Labor Statistics index.

BANK CREDIT
Excess reserves at all member banks fluctuated around one billion dollars
in November and December, maintaining an average level slightly below that
which prevailed during the previous month. During the five weeks ending
December 22, reserve funds were absorbed by a pre-holiday rise in money in
circulation of about 800 million dollars, and required reserves continued to
increase as Treasury expenditures transferred funds from Government accounts
to private deposits. Needed reserves were supplied to member banks through
an increase of 1.7 billion dollars in Government security holdings at the Reserve
Banks. Additions to Treasury bill holdings accounted for the larger part of the
increase, but certificate holdings also rose substantially.
During November and the first half of December, loans and investments
at reporting member banks in 101 leading cities declined by around 2% billion
dollars, after increasing by 6^4 billion in September and October. Holdings of
all types of Government securities decreased. Bill holdings, mainly because of
sales to the Reserve Banks, showed the largest decline. Loans for purchasing
or carrying securities continued to decline over the period.

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