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MONTHLY REVI EW of Financial and Business Conditions F if t h Fed er a l ; . Richmond ‘ 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 awrards. 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, powTder 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 Change i n .Amount 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 — 56 — — — + — — 55 73 58 70 30 57 Nov. 1943 Smoking & chewing to bacco (Thousands of lbs.) Cigarettes (Thousands) . . Cigars (Thousands) . . . . . Snuff (Thousands of lbs.) % chg. from Nov. 1942 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) 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 % 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.
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