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MONTHLY

REVI EW

of Financial and Business Conditions
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F ifth
Federal

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Baitore %

/: Richmond®

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Reserve
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Dist r ic t

Federal Reserve Bank, Richmond, Va.

January 31, 1942

Buy

Buy

D e f e n se
B onds

S a v in g s
St a m p s




INVEST FOR VICTORY NOW

2

MONTHLY REVIEW

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
I N D U S T R IA L

P R O D U C T IO N

Industrial activity declined less than seasonally in December and the first
half of January, retail trade continued in large volume, and prices of many
commodities rose further.
PRODUCTION

Federal Reserve index of physical volume of
production, adjusted for seasonal variation, 193539 average=100. By months, January 1935 to
December 1941.
F R E IG H T -C A R LO ADIN G S

In December total volume of industrial output declined less than is usual
at this season and the Board's adjusted index rose further to 168 per cent of
the 1935-1939 average. In the armament industries output continued to advance
and at machinery plants activity rose sharply, following little change in No­
vember. Output of materials, such as iron and steel and nonferrous metals,
continued at peak levels and lumber production showed less than the usual
seasonal decrease. Automobile production declined sharply in the latter half
of December, following announcement of sharp reductions in passenger car
quotas, but early in January quotas for that month were increased and output
rose considerably. Sales of new automobiles to civilians were halted at the
beginning of January pending the establishment of a rationing system.
Textile production declined somewhat in December owing to a reduction in
activity at cotton mills from the record level reached in November. Output of
wool and rayon textiles was sustained at about capacity. Output of manufac­
tured food products and shoe production showed about the customary seasonal
declines. Coal output decreased somewhat in December, while petroleum pro­
duction and mining of nonferrous metals were maintained at the high November
rate.
Value of construction contracts awarded in December declined less than is
usual at this time of year, according to figures of the F. W. Dodge Corporation.
Awards for public projects showed little change, while those for residential con­
struction declined less than seasonally following a considerable reduction in
November.
DISTRIBUTION

nue freight, adjusted for seasonal variation, 193539 average—100. Subgroups shown are expressed
in terms of points in the total index. By months,
January 1935 to December 1941.
WHOLESALE PRICES

Volume of retail trade, which had been large during most of the autumn,
increased less than seasonally in December. This reflected to some extent a tem­
porary slackening in sales around the middle of the month following this coun­
try's entry into the war. In the first half of January sales at department stores
showed less than the customary sharp reduction from the Christmas buying peak
and were at a level substantially higher in comparison with a year ago than that
prevailing in other recent months.
Freight-car loadings of most products decreased by less than the customary
seasonal amount in December. Coal shipments declined considerably in the
latter part of the month but then increasel sharply in the first half of January.
Shipments of miscellaneous freight, which includes most manufactured products,
were maintained in large volume for this season of the year.
COMMODITY PRICES

Bureau of Labor Statistics* indexes, 1926=100.
“ Other” includes commodities other than farm
products and foods. By weeks, January 5, 1935
to January 17, 1942.
MONEY RATES IN NEW YORK CITY

Wholesale commodity prices increased sharply when this country entered
the war early in December and then showed little change during the latter half
of the month. In the first half of January prices again advanced, the principal
increases being in agricultural commodities and chemicals.
Federal action to impose maximum prices was accelerated with the outbreak
of war and applied on a wider scale to industrial products. Ceilings were ex­
tended to products in later stages of production and distribution and in most
instances covered consumers' goods. Certain of the actions, like those relating
to rubber and wool products, were associated with new Federal production re­
strictions. In this period also there were advances in a number of price ceilings
established earlier.
BANK CREDIT

Total loans and investments of banks in leading cities, which had advanced
sharply during the first half of December, have subsequently shown little further
change.
Treasury financing in the middle of December and heavy currency with­
drawals during the holiday season absorbed close to 700 million dollars of excess
reserves during the month. About 500 million of this was recovered in the first,
half of January, as the result of a decline in Treasury deposits at the Reserve
Banks and a return of currency from circulation. Recent changes in excess
reserves have been almost entirely at banks outside of New York City.
Weekly averages of daily yields of 3-to 5-year
tax-exempt Treasury notes, Treasury bonds call­
able after 12 years, and average discount on new
issues of Treasury bills offered within week. For
weeks ended January 5, 1935 to January 17, 1942.




UNITED STATES GOVERNMENT SECURITY PRICES

Prices of Government securities were steady in the first half of January,
following a decline in December after the entry of the United States into the war.

MONTHLY REVIEW

3

Annual Survey for 1941
T

RADE and industry in the Fifth Federal Reserve dis­
trict during 1941 continued at an accelerated rate
over the near record levels attained in the second half of
1940. New records were set in several lines. In industry,
practically all plants in every line of work ran full time,
and many went on a multiple shift basis. Cotton textile
mills consumed more cotton than in any earlier year, and
were so fully engaged on defense orders that much civilian
business had to be declined. Rayon yarn mills operated
at capacity during all of 1941, but could not meet all de­
mands for rayon after the Government impounded raw
silk stocks. Shipyards in the district employed every
trained workman they could obtain, and used every avail­
able shipway in the yards. Several additions were made
to existing yards anad new yards were opened. Air­
craft factories expanded facilities as rapidly as possible,
and greatly increased ability to deliver planes of all types.
The chemical industry expanded facilities to meet con­
stantly increasing demands for defense material, and a
large number of small industries which were able to tie
into the war preparations received all the orders they could
handle. The demand from industry and transportation
for coal greatly stimulated mining in the district, and bi­
tuminous coal production in West Virginia, Virginia and
Maryland rose 12 per cent above 1940 output, in spite of
the fact that virtually all mines were closed during April
1941 by a labor dispute. In the construction field, 1941
witnessed an enormous volume of work in the district,
most of which was of an industrial or public works char­

acter, although there were also many large housing pro­
jects for which contracts were let. Building permits is­
sued in 1941 in 29 Fifth district cities totaled $140,257,619,
and exceeded 1940 valuation by 1 1 per cent, while con­
tracts actually awarded for all types of construction in
both urban and rural areas totaled $867,436,000 in the
year 1941, an increase of 67 per cent over contracts
awarded in 1940. Distribution of goods to consumers,
stimulated by greatly increased employment and larger
payrolls, rose notably last year. Sales by 79 department
and general merchandise stores in 1941 were 20 per cent
above 1940 sales, and furniture sales at retail increased
24 per cent. Automobile sales for the first 8 months of
1941 ran 41 per cent ahead of 1940 sales for the corres­
ponding period, but after the new models came out sales
dropped below figures for the preceding year enough to
bring the year’s sales down to only 15 per cent above 1940
sales. Debits to individual accounts, reflecting transactions
through the banks in 25 Fifth district cities, rose to $ 2 1 ,452„754,000 in 1941, an increase of 27 per cent over the
1940 total. Every reporting city showed higher debits
in the later year. In agriculture the Fifth district suffered
from drought, but fortunately crops got a good start last
spring and the drought did relatively little damage except
to the cotton crop in the Carolinas and to Irish potatoes
and peanuts. Prices for agricultural products were sub­
stantially higher in 1941 than in 1940, and therefore
farmers experienced an average year or better in cash in­
comes from their crops.

BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT

December 1941
Debits to individual accounts (25 cities).....................
Sales, 79 department stores, 5th district........................ .........
Sales, 40 furniture stores, 5th district......................... .........
Sales, 190 wholesale firms, 5th district.......................... .........
Regisrations, new autos, 5th district.............................
Tobacco sold in 5th district (Pounds)..........................
Average price of tobacco, per 100 lbs.......................... ........
Growers’ receipts from tobacco, 5th district................. .........
Number of business failures, 5th district...................... .
Liabilities in failures, 5th district.................................. .........
Value of building permits, 29 cities..................... ........ ........
Value of contracts awarded, 5th district....................... ........
Cotton consumption, 5th district (Bales).....................
Cotton price, cents per lb., end of month....................
Print cloths, 39 in., 80x80s, end of month.....................
Rayon yarn shipments, U. S. (Pounds).........................
Rayon Yarn Stocks, U. S. (Pounds)............................
Bituminous coal mined, U. S. (Tons).....................
*Ceiling price, established by O. P. A.




$2,220,330,000
$ 30,527,927
1,875,026
$
$ 12,269,000
15,272
$
$
$
$
$

11,880,521
22.170
2,633,644
28
151,000
11,218,864
64,541,000
420,570
18.210
11.250*
39,300,000
3,800,000
46,667,000

November 1941 December 1940 Month

Year

$1,855,206,000
$ 19,410,971
1,659,691
$
$ 12,972,000
13,886
$
$
$
$
$

$1,735,170,000
$ 25,940,142
1,746,596
$
9,374,000
$
28,391

+
+
+
—
+

20
57
13
5
io

-f+
+
+
—

28
18
7
31
46

41,078,143
26.380
10,835,573
17
136,000
5,782,399

$
$

35,323,912
13.550
4,785,998
41
884,000
8,322,378

—
—
—
+
+
+

71
16
76
65
11
94

—
+
—
—
—
+

66
64
45
32
83
35

58,153,000
401,289
16.570
10.875*
38,500,000
4,500,000
43,770,000

$ 101,104,000
355,361
10.070
7.500
34,000,000
6,300,000
41,400,000

+
+
+
+
+
—
+

11
5
10
3
2
16
7

—
+
+
-1+
—
+

36
IB
81
50
16
40
13

$
$

4

MONTHLY REVIEW
RESERVE BANK OPERATIONS

Between December 15, 1941, and January 15, 1942, cir­
culation of Federal Reserve notes of the Federal Reserve
Bank of Richmond rose, contrary to the seasonal trend
which in most years is downward after the holiday need
for funds has passed. Government security holdings de­
clined slightly during the month, due to a redistribution
of System holdings on January 1. Member bank reserve
deposits and the Bank’s cash reserves increased moder­
ately between the middle of December and the middle of
January. In comparison with figures for January 15,
1941, those for January 15, 1942, show advances in hold­
ings of Government securities, in total earning assets, in
circulation of Federal Reserve notes, in member bank re­
serve deposits and in cash reserves. The increase of
$152,284,000, or 55 per cent, in Federal Reserve notes in
circulation was especially striking, reflecting greater ac­
tivity in nearly all lines of trade and industry this year
and also the probability of some hoarding of currency.
RESERVE BANK STATEMENT ITEMS
Fifth District
000 omitted
Dec. 15
Jan. 15
ITEMS
1941
1942
$
0
$
0
Discounts held ..........................................
0
0
Industrial advances .................................
764
770
134,744
137,163
Government securities ...........................
137,933
Total earning assets.............................
135,508
427,192
418,403
Circulation of Fed. Res. notes...............
464,615
462,763
Members’ reserve deposits.......................
817,411
822,615
85.31
85.08
Reserve ratio ..........................................

Jan. 15
1941
33
!?
27
780
119,976
120,816
274,908
372,450
581,553
83.23

A review of the operations of the Federal Reserve Bank
of Richmond during 1941 shows further growth, much
of which occurred in the latter half of the year as the de­
fense program expanded. Total assets of the bank rose
from $774,748,011 on December 31, 1940, to $1,042,943,453 on December 31, 1941. The number of employees
at the Richmond, Baltimore and Charlotte offices in­
creased from 675 to 795 during the year, the rise being
due chiefly to a great increase in the personnel needed to
handle defense bonds and the details of installment credit
supervision under Regulation W. The number of checks
handled by the Transit department again set an annual
record at 87,796,000 items, an average of 293,632 checks
per working day. These checks totaled $20,410,680,000
in 1941, an average of $68,263,144 per day. Currency and
coin received or paid out in 1941 totaled 1,302,051,924
pieces, valued at $2,246,927,300, against 962,789,100 pieces
valued at $1,567,387,500 handled in 1940. Transfers of
funds to and from other Reserve Banks and Branches
through the Inter-district Settlement Fund rose from
$16,273,394,000 in 1940 to $21,733,031,000 in 1941. The
number of member banks in the Fifth district rose from
431 to 447 in 1942, the following 16 banks having joined
the Reserve System on the dates shown:
2-15
3- 1
3-12
3-15
5-13
5-14
7- 9
7-26
8-12
8-16

The Vienna Trust Company.................................................. Vienna, Va.
The Bank of Elkton...................................................................Elkton, Va.
Rock Hill National Bank................................................. Rock Hill, S. C.
The Savings Bank of Williamsport............................ Williamsport, Md.
Planters Bank & Trust Company....................................... Chatham, Va.
The Bank of Dinwiddie, Inc...............................................McKenney, Va.
McLachlen Banking Corporation................................Washington, D. C.
Citizens Bank of South Boston................................... South Boston, Va.
Bank of White Sulphur Springs........ White Sulphur Springs, W. Va.
The Pulaski Trust Company................................................ Pulaski,) Va.




9-29
10- 8
11-14
12- 9
12-12
12-24

The Capon Valley Bank......................................... Wardensville, W. Va.
The Munsey Trust Company....................................... Washington, D. C.
Carroll County Bank............................................................Hillsville, Va.
Bank of Greenville....................................................... Greenville, W. Va.
The Fidelity Bank...............................................................Durham, N. C.
The Farmers Exchange Bank............................................... Coeburn, Va.

STATEMENT OF SELECTED MEMBER BANKS

The accompanying table shows comparisons of state­
ment items for 41 regularly reporting member banks in
12 Fifth district cities as of January 14, 1942, with cor­
responding figures a month and a year earlier. Changes
between December 10, 1941, and January 14, 1942, were
small, but during the past year loans to business and agri­
culture rose 16 per cent, all other loans rose 1 1 per cent,
investments in securities rose 28 per cent, and demand de­
posits rose 22 per cent. Time deposits, on the contrary,
decreased 1 per cent between mid-January last year and
this.
SELECTED ITEMS— 41 REPORTING BANKS
Fifth District
000 omitted
Jan.14
Dec. 10
ITEMS
1942
1941
Loans to business & agriculture............
$159,493
$161,683
176,979
175,148
All other loans..........................................
566,184
573,087
Investments in securities.........................
293,169
320,007
Reserve bal. with F. R. bank..................
30,648
30,337
773,796
779,618
Demand deposits .......................................
201,167
204,519
Time deposits ............................................
0
0

Jan. 15
1941
$137,700
159,499
447,111
248,518
23,961
632,936
203,177
0

DEPOSITS IN MUTUAL SAVINGS BANKS

Deposits in 9 mutual savings banks in Baltimore on De­
cember 31, 1941, totaled $223,594,129, against deposits
totaling $223,920,684 at the end of 1940. This is the first
month since February 1939 to show a lower figure than
the corresponding month of the preceding year. Deposits
in the 9 banks reached the highest point on record on
October 31, 1941, at $225,557,877, but declined somewhat
in November and still further in December, when defense
bond buying from savings was greatly stimulated by the
Japanese attack on Pearl Harbor and the Philippines.
DEBITS TO INDIVIDUAL ACCOUNTS

Debits to individual accounts measure the volume of
checks cashed against deposit accounts of individuals, firms
and corporations in 25 Fifth district cities. The December
1941 figures rose seasonally by 20 per cent over Novem­
ber figures, due to holiday spending in the later month, and
also increased 28 per cent over debits in December 1940.
Columbia, Danville and Durham reported lower debits last
month than in November but the decreases in Danville
and Durham were seasonal declines due to lessened auction
tobacco sales.
In the calendar year 1941, debits in the 25 cities rose
27 per cent over 1940 debits, every city reporting higher
figures for the later year. Wilmington, N. C., led all
Fifth district cities with a gain of 58 per cent in 1941
debits over 1940, and Spartanburg with an increase of 47
per cent took second place. Many other cities show clear­
ly the influence of defense spending in or near them in
1941.

MONTHLY REVIEW

5

DEBITS TO INDIVIDUAL ACCOUNTS
December
1941

November
1941

$ 447,986,000

$ 363,843,000

$ 339,473,000

+23

+32

$ 4,298,925,000

$ 3,470,046,000

+24

634,652,000
12,075,000
15,109,000

523,652,000
9,774,000
12,590,000

495,647,000
9,383,000
11,
221,000

+ 24

+ 21
+ 20

+ 28
+ 29
+ 35

6,216,919,000
120.530.000
143.370.000

4,800,109,000
103.341.000
113.032.000

+ 30
+ 17
+27

23,641,000
113,232,000
41,661,000
36,669,000
76,070,000
26,046,000
59,593,000

18,168,000
97.086.000
45.956.000
26.653.000
60.888.000
21,116,000
57,959,000

17.914.000
102,551,000
34.996.000
28.362.000
66.073.000
13.982.000
54.936.000

+ 30
+ 17
— 9
+ 38
+ 25
+ 23

+ 32

+ 3

+ 86
+ 8

213.950.000
1,159,170,000
507.773.000
320.625.000
690.626.000
225.079.000
610.958.000

166,202,000
846.844.000
412.692.000
255.881.000
553.687.000
142.887.000
518.191.000

+ 29
+ 37
+ 23
+ 25
+ 25
+ 58
+ 18

35,687,000
43,913,000
34,579,000
19,359,000

29.135.000
46.324.000
30.590.000
17.539.000

24.607.000
41.411.000
25.766.000
14.488.000

+ 22

+ 45

+ 10

+ 34
+ 34

344.180.000
479.241.000
339.779.000
205.865.000

248.124.000
376.001.000
252.517.000
139.814.000

+
+
+
+

16,964,000
23,476,000
17,583,000
96,216,000
9,218,000
257,460,000
42,184,000

17.756.000
19.048.000
14.216.000
81.190.000
7,604,000
215,534,000
36.289.000

11.603.000
19.035.000
14.532.000
73.719.000
7,321,000
192,111,000
34.121.000

— 4
+ 23
+ 24
+ 19
+ 19
+ 16

+ 46
+ 23
21
+ 31
+ 26
+ 34
+ 24

156.023.000
214.730.000
180.728.000
919.476.000
83,937,000
2,429,165,000
421.170.000

119.536.000
183.894.000
154.701.000
670.592.000
61,533,000
1,933,670,000
351.278.000

91,260,000
31,379,000
14,318,000

CITIES

65.829.000
23.045.000
13.422.000

67.850.000
22 122.000
11,946,000

+ 39
+ 36

+ 35
+ 42

760.665.000
260.784.000
149.086.000

625.760.000
215.607.000
126.348.000

+ 18

$1,855,206,000

$1,735,170,000

+20

$21,452,754,000

$16,842,287,000

+27

Dist. of Col.
Washington

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

December
1940

% Change
Annual Totals
Month Year
1941

Anual Totals
1940

%
Change

Maryland
Baltimore ....................................................
Cumberland ..................................................
Hagerstown ..................................................
North Carolina
Asheville........................................................
Charlotte ......................................................
Durham ........................................................
Greensboro ....................................................
Raleigh ........................................................
Wilmington ................................................ .
Winston-Salem .............................................

+ 10

+ 19
+ 29
+ 15

South Carolina
Charleston ....................................................
Columbia ......................................................
Greenville ....................................................
Spartanburg ................................................

— 5
+ 13

+ 6

39
27
35
47

Virginia
Danville ........................................................
Lynchburg ....................................................
Newport News ............................................
Norfolk ..........................................................
Portsmouth ..................................................
Richmond ......................................................
Roanoke ........................................................

+ 21

+

+31
+ 17
+ 17
+ 37
+ 36
+ 26

+ 20

West Virginia
Charleston ....................................................
Huntington ..................................................
Parkersburg ................................................
District Totals .........................................

$2,220,330,000

COMMERCIAL FAILURES

Monthly and yearly statistics on commercial failures in
the Fifth district and the United States as compiled by
Dun & Bradstreet are as follows:
PERIODS
December 1941.....................
November 1941.....................
December 1940.....................
12 months, 1941.....................
12 months, 1940.....................

Number of Failures
District U. S.
28
17
41
380
536

Total Liabilities
U. S.
District

898
842
1,086

$ 151,000
136,000
884,000

$ 13,469,000
9,197,000
13,309,000

11,848
13,619

3,942,000
7,384,000

136,104,000
166,684,000

EMPLOYMENT

The demand for workers increased steadily through
1941, and at the end of the year unemployment had been
reduced substantially. Shortages of skilled workers were
evident and in some areas reserves of unskilled workers
were largely eliminated. Induction of young men into
the armed forces opened many jobs to older workers who
had been idle previous to the defense program, and in­
creased trade in retail outlets and greater need for office
personnel in industry sharply reduced unemployment of
white collar and clerical workers. In January an employ­
ment problem began to develop among people making
their livings as automobile and tire salesmen and others
connected directly or indirectly with the automotive indus­
try, but except for new car and tire salesmen the situation
has not yet become acute. Employment in Fifth district
industries rose about 11 per cent in 1941 over 1940, but
because of longer hours of employment and higher pay
the total of payrolls rose around 29 per cent.




.

+ 7

+ 20

+28

+ 22
+ 21

The following figures, compiled for the most part by
the Bureau of Labor Statistics from records submitted by
a large number of identical employers, show trends of
employment and payrolls in the Fifth district from No­
vember to December.
Percentage change from
Nov. 1941 to Dec. 1941
in number
in amount
on payroll
of payroll

STATES

+

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

0.8
+ 7.4
+ 0.4
0.1

+

0.0

— 0.3
+ 0.7

+ 7.6
+ 8.4
1.6
+ 2.5
0.8
+ 0.5
+ 3.5

+
+

AUTOMOBILE REGISTRATIONS
REGISTRATION OF NEW PASSENGER CARS— NUMBER
STATES
Maryland ..........
Dist. of Col. . . .
Virginia ............
West Virginia ..
No. Carolina . . .
So. Carolina . . . .
District ............

Dec.
1941

Dec.
1940

2,711
1,238
3,835
1,479
4,143
1,866
15,272

5,076
2,622
6,561
2,392
8,343
3,397
28,391

%

Change
—
—
—
—
—
—

47
53
42
38
50
45
46

12 Months 12 Months
%
1941
1940
Change
56,579
30,186
73,808
33,166
65,727
35,611
295,077

51,319
29,170
57,840
31,102
56,760
30,432
256,623

+ 10
+ 3
+28
+ 7
+ 16
+ 17
+ 15

Registrations of new passenger automobiles in Decem­
ber continued to show marked declines in comparison
with registrations in the corresponding month of the pre­
ceding year, a development which began in September
when 1942 models were introduced. However, sales of
automobiles were so large during the first eight months of
1941 that the year’s total for the district exceeded the 1940
figure, and was the largest on record, exceeding the prev­

MONTHLY REVIEW

6

ious record of 264,608 set in 1929 by 12 per cent. The
registration figures in the table were furnished by R. L.
Polk & Co.
Soft coal mined in December 1941 in the United
States totaled 46,667,000 net tons against 43,770,000 tons
in November 1941 and 41,400,000 tons in December 1940.
On a daily basis, however, the December production rate
of 1,795,000 tons was 3 per cent below the November
daily output of 1,855,000 tons. Total coal dug in 1941
amounted to 502,860,000 net tons, an increase of 1 1 per
cent over 453,245,000 tons mined in 1940. Fifth district
states of West Virginia, Virginia and Maryland mined
approximately 159,567,000 tons of bituminous coal in
1941, or 32 per cent of the National total, against 142,730.000 tons, or 31 per cent of the National total, in 1940.
Hampton Roads ports shipped approximately 21,863,000
tons of coal in 1941, a decrease of 1 per cent under 2 2 ,131.000 tons shipped in 1940. Production figures for
Fifth district states in 1941 and 1940 were as follows:

West Virginia .......................
Virginia .................................
Maryland .................................
5th District ....................... ..
United States ...................

Year 1940

1940

$ 34,816,638
453,916
646,549

Hagerstown ...............................

$ 30,388,453
690,744
621,389
. 566,342
786,880

Virginia

.

766.758
1,098,383
5,564,113
223,343
1,191,221
6,380,460
1,397,019

717,630
1,327,885
7,000,321
186,971
2,430,492
5,267,908
1,390,208

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

560,014
1,592,139

4,345,397
822,978
1,682,122

........
Petersburg
Portsmouth

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

West Virginia
Clarksburg
Huntington

North Carolina

Greensboro ...............................
High Point ............................... . . . .
Rocky M ount.............................

4,439,766
2,603,310
1,903,439
2,393,388

........

603,610
627,369

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

2,214,133
1,063,217
1,557,047

Winston-Salem .........................

655,542
4,295,627
1,625,023
2,674,816
1,182,235
2,328,176
716,561
452,735
2,628,421

South Carolina

SOFT COAL PRODUCTION IN TONS
Year 1941

1941

Maryland
Cumberland ...............................

BITUMINOUS COAL PRODUCTION

STATES

VALUATION OF BUILDING PERMITS ISSUED
CITIES

% Change

139,974,000
126,302,000
17,877,000
14,950,000
1,716,000_______ 1»478,000________
159,567,000
142,730,000
502,860,000
453,245,000

+ 11
+ 20
+ 16
+12
-j-H

Spartanburg

2,222,532
2,826,973
900,012
1,773,834

Dist. of Col.
Washington ............................... ........
55,212,080
43,751,180
District Totals ..................... ........
$126,259,387
$140,257,619
Note: Valuation figures for Washington do not include Federal buildings.

BUILDING PERMITS AND CONTRACT AWARDS

Building permits issued in 29 Fifth district cities in
December 1941 totaled $11,218,864 in estimated valuation,
an increase of 35 per cent over the December 1940 valua­
tion of $8,322,378. Washington was first last month with
permits totaling $6,500,510, Baltimore was second with
$2,354,370, Norfolk third with $414,839, Richmond fourth
with $180,618, and Charlotte fifth with $159,855. E x ­
amination of the annual record shows permits issued in
1941 totaling $140,257,619, an increase of 11 per cent
over $126,259,387 in 1940. Washington led for the year
with permits totaling $55,212,080, exclusive of Federal
Government work for which city permits are not required.
A table showing permits issued in each of the 29 cities in
1941 and 1940 appears elsewhere in this Review.
Construction contracts awarded in the Fifth district in
December 1941 totaling $64,541,000 led all Reserve dis­
tricts, but were 36 per cent below awards totaling $ 1 0 1 ,104.000 in December 1940. Contract awards in the Fifth
district in the calendar year 1941 amounted to $867,436,000, an increase of 67 per cent over $520,642,000 in
awards in 1940.
Contract award figures by states for December are
not yet available, but November awards, which were not
available when the December 31, 1.941, Review went to
press, were as follows:
CONSTRUCTION CONTRACTS AWARDED
STATES
Maryland .......................
Dist. of Col.....................
West Virginia ..............
North Carolina ............
South Carolina ............
Fifth District ............




Nov. 1941
$ 16,968,000
4,136,000
19,806,000
5,220,000
5,615,000
6,408,000
$58,153,000

Nov. 1940
$ 8,368,000
6,244,000
11,629,000
5,661,000
6,418,000
7,383,000
$45,703,000

% Change
+ 103
- 34
+ 70
— 8
— 13
— 13
+ 27

THE RAYON INDUSTRY

December figures on rayon filament yarn shipments and
stocks are not yet available, but preliminary data indicate
a continuation of capacity production last month and fur­
ther reduction in reserve stocks. Rayon Organon, in re­
viewing the rayon industry for 1941, says that average de­
liveries of yarn set a new record of over 37,000,000 pounds
per month against the previous record of 32,000,000
pounds per month in 1940. The capacity demand for
rayon yarn has been almost exclusively for civilian use.
Unlike wool and cotton, rayon has not been used exten­
sively in textile products for the armed forces, but it is
expected that rayon's use in defense products will expand
materially in 1942. During 1941 there were several
minor adjustments and one general upward revision in
rayon yarn price schedules, but the increases were very
moderate in comparison with advances in cotton and wool,
and the new schedules received the approval of the OPA.
Pulp used in making rayon was stabilized at $85 per ton
throughout 1941, but chemical costs rose appreciably and
in the first nine months of 1941 the average hourly earn­
ings of workers in the rayon industry were 71.4 cents
against 67.4 cents in the same 1940 period. Late last
year du Pont’s new nylon plant in Virginia began opera­
tions, and the Company announced plans for further ad­
ditions to its original plant in Delaware. It is expected
that nylon capacity will reach 20 ,000,000 pounds annually
by the end of 1942.

MONTHLY REVIEW
COTTON TEXTILES

COTTON CONSUMPTION AND ON HAND

December witnessed a slowing in business in cotton
textiles. In its survey of the market for December, the
Journal of Commerce states that as a consequence of the
declaration of war and expectations of heavy Government
requirements, mills withdrew offerings in many sections
of the industry. Demand continued very active from
civilian sources, but went largely unfilled while further
large Government purchases were made. Print cloths
sold well, and after the start of the war sateens sold ex­
tensively for blackout cloths. In combed yarn goods a
substantial amount of business was booked in lawns and
other staples “ on memorandum” in advance of the new
ceiling schedules issued on the 24th, but mills withdrew
thereafter. New fine goods ceiling regulations put a
broad list of goods on a sliding scale basis, varying with
cotton, and sliding scale ceilings also were instituted on
combed yarns during the month. Colored goods sold in
considerable volume, and denim mills sold up production
through March. The Government issued calls for bids on
upward of 40,000,000 yards of cotton textiles during De­
cember. The OPM asked cotton mills to go on a 24-hour
basis and possibly seven days a week operations, but there
are difficulties owing to machine, labor and other prob­
lems. With ceiling prices on most textile products now
tied to the price of spot cotton, textiles followed cotton
upward in December, and closed about 50 per cent above
prices at the end of 1940.
Consumption of cotton in Fifth district mills in 1941
was the highest on record, exceeding the former 1940
record figure by 27 per cent. New district records for
consumption were set in each of the past four years.
In Bales
No. Carolina So. Carolina

Virginia

District

December 1941.................
November 1941..................
December .1940.................

227,611
216,694
194,240

173,762
165,790
145,800

19,197
18,805
15,321

420,570
401,289
355,361

12 months, 1941..................
12 months, 1940.................

2,632,046
2,067,131

1,980,647
1,583,741

224,686
154,054

4,837,379
3,804,926

COTTON PRICES AND STATISTICS

Spot cotton prices on 10 Southern markets rose steadily
from 17.22 cents per pound on December 12, 1941 to 18.81
cents on January 16, 1942, an increase of $7.95 per bale.
A year ago, on January 17, 1941, the average price for
middling grade upland cotton was 10.06 cents, from which
an advance of $43.75 per bale occurred by January 16,
1942.




Dec.
1941

Cotton growing states:
Cotton consumed ...................
Cotton on hand Dec. 31 in
Consuming establishments
Storage & compresses

Dec.
1940

420,570

Fifth district states:
Cotton consumed ..

Aug. 1 to Dec. 31
This Year Last Year

355,361

2,077,707

1,652,289

753,623

666,920

3,771,145

3,065,710

4,440,454

3,578,607

1,965,122 1,538,279
13,326,808 14,799,340

United States:
Cotton consumed .................
Cotton on hand Dec. 31 in
Consuming establishments
Storage & compresses . . . .

2,393,782 1,837,091
13,713,773 15,050,823

Spindles active, U. S.................

23,063,112 22,799,060

887,326

777,482

AUCTION TOBACCO MARKETING

Bright, or flue-cured, tobacco markets finished season
sales in December, while fire-cured, burley and sun-cured
markets opened. Season sales of tobacco to January 1
this year were 13 per cent less than sales to January 1,
1941, but the average price this season has been 74 per
cent higher and total receipts by growers rose 52 per cent.
Sales to January 1, 1942 totaled $168,475,431, compared
with $111,184,306 received prior to January 1, 1941.
Producers’ Tobacco Sales, Pounds
December 1941 December 1940

STATES
No. Carolina ...................
Virginia (Flue cured). . .
(Fire cured) ..
(Burley) ........
(Sun cured) ..
Virginia, Total ..............
District Total, Dec.
N. C. season to 12-31 ..
Va. season to 12-31
S. C. entire season ........
District, season to 12-31

496,899
3,868,817
2,270,387
4,784,618
459,800
11,383,622
11,880,521
424,971,066
87,643,074
57,950,536
570,564,676

18,135,933
6,798,306
4,266,347
5,546,700
576,626
17,187,979
35,323,912
484,974,920
95,391,364
74,803,580
655,169,864

Price per Cwt.
1941
1940
$19.57
17.69
14.67
29.97
18.48
22.28
22.17
29.93
30.44
25.20
29.53

$13.69
11.87
8.57
19.48
8.72
13.40
13.55
17.30
17.19
14.55
16.97

TOBACCO MANUFACTURING

COTTON CONSUMPTION—FIFTH DISTRICT
MONTHS

7

Bureau of Internal Revenue receipts for December in­
dicate production of tobacco products as follows in the
United States:
TOBACCO PRODUCTS MANUFACTURED
Smoking & chewing
tobacco, pounds ..............
Cigarettes, number ................
Cigars, number .....................
Snuff, pounds .........................

Dec. 1941
20,994,506
16,200,694,020
474,912,920
3,320,502

Nov. 1941

Dec. 1940

24,345,905
21,499,435
17,140,649,845 13,814,602,886
542,905,735
349,779,880
3,030,490
3,258,973

Annual production figures for 1941 and 1940 were as
follows:
Year 1941
Year 1940
Smoking & chewing
tobacco, pounds ..............
298,724,764
304,320,494
Cigarettes, number ................ 206,405,766,365 180,662,787,772
Cigars, number .....................
5,787,235,511
5,418,408,619
Snuff, pounds ...........................
39,580,412
37,875,059

% Change
— 2
+14
+ 7
+ 5

MONTHLY REVIEW

8

RETAIL AND WHOLESALE TRADE

Wholesale Trade, 190 Firms
Net Sales
Dec. 1941
compared with
Nov.
Dec.
1940
1941

Department Store Trade
Percentage increase or decrease in sales, stocks,
outstanding orders and outstanding receivables in
Dec. 1941 in comparison with Dec. 1940 figures:
Sales
Stocks
Orders
Receivables
+ 14 ( + 14)
+ 19 (+ 2 0 )
+ 17 (+ 2 0 )
+ 14 ( + 17)
.+ 1 8 (+ 2 0 )

Richmond (5) .............
Baltimore (10) ............
Washington (7) ............
Other Cities (12) ........
Fifth District (79)*
Same stores by states:
Maryland (13) ..........
Virginia (16) ..............
West Virginia (15) ..,
North Carolina (16) .
South Carolina (12)

+
+
+
+
+

19
17
16
12
24

(+
(+
(+
(+
(+

+ 29
+ 24
+ 31
+ 28
+ 28

+
+
+
+
+

44
84
86
79
78

+
+
+
+
+

12
7
11
13
10

20)
20)
18)
17)
26)

LINES
Automotive supplies (11)
Shoes (4) .......................
Drugs & sundries (11) .
Dry goods (8) ................
Electrical goods (6) . . .
Groceries (60) ................
Hardware (11) ..............
Indus, supplies (8) . . . .
Paper & products (10) .
Tobacco & products (8).
Miscellaneous (53) . . . .
Dist. Average (190)..

— 4
-4 8
— 3
-3 4
+ 24
+ 6
— 12
+ 6
+ 2
+ 3
+ 7
— 5

+ 16
+ 63
+20
+ 21
+ 39
+ 32
+ 24
+ 30
+ 45
+ 31
+ 34
+ 31

Stocks
Dec. 31, 1941
compared with
Dec. 31 Nov. 3'0
1941
1940
+ 16
+ 70

+ 2
+ 57

+ 74
+ 24
+ 23
+ 5
— 3
+ 10

+ *2
+ 7
+ 2
+ 2
+ 2
+ 22

+ 22
+ 27

— i
+ 10

Ratio Dec.
collections
to accounts
outstanding
Dec. 1
81
61
92
56
84
110
60
90
68
96
21
77

Source: Department of Commerce.

* Includes stores reporting sales only.
Note: Second figure under Sales, in parentheses, compares total sales in
1941 with total sales in 1940.

RETAIL FURNITURE SALES
% Changes in Sales, Dec. and Year 1941
compared with
Compared with
Dec. 1940
Year 1940

STATES

Maryland (9) .....................................
Dist. of Col. (7) ...............................
Virginia (13) ...................................
North Carolina (5) .........................
South Carolina (6) .........................
District (40) ...................................

+10
+22
— 3
— 9
+10
+ 7

+20
+34
+18
+14
+30
+24

Individual Cities:
Baltimore (9) ...................................
Richmond (5) ...................................
Washington (7) ...............................

+10
— 7
+22

+ 20
+ 4
+34

AGRICULTURE IN 1941

In the accompanying table we show final crop estimates
for 1941, with some earlier comparisons, together with
CROPS

Yrs.

Maryland

Virginia

15,164,000
16,335,000
16,173,000

32,942,000
36,396,000
32,418,000

total farm values for 1941 and 1940 yields of the leading
crops in the Fifth Federal Reserve district.

W. Virginia

N. Carolina

S. Carolina

District

Farm Value

12,307,000
11,956,000
12,610,000

52,096,000
47,600,000
43,507,000

22,316,000
23,733,000
22,831,000

134,825,000
136,020,000
127,539,000

$107,827,000
100,177,000

28,000
25,000
33,000

556,000
739,000
629,000

405,000
966,000
824,000

989,000
1,730,000
1,486,000

$ 84,857,000
86,526,000

12,000
11,000
15,000

247,000
328,000
279,000

180,000
430,000
366,000

459,000
769,000
660,000

$ 22,193,000
17,011,000

2,775,000
3,060,000
2,985,000

465,235,000
524,185,000
529,356,000

66,000,000
84,245,000
85,656,000

654,754,000
744,639,000
744,759,000

$189,575,000
126,589,000

3,795,000
3,630,000
2,844,000

6,636,000
8,720,000
8,182,000

2,548,000
2,875,000
2,475,000

21,815,000
27,831,000
27,159,000

$ 17,078,000
18,643,000

6,880,000
7,178,000
8,354,000

4,400,000
4,160,000
5,401,000

15,290,000
16,613,000
18,887,000

$ 13,697,000
12,602,000

1,776,000
1,610,000
1,931,000

6,300,000
5,875,000
4,460,000

12,100,000
11,395,000
9,238,000

23,825,000
22,427,000
19,070,000

$ 13,118,000
10,927,000

7,665,000
8,168,000
8,643,000

1,628,000
1,711,000
2,154,000

7,110,000
6,645,000
4,807,000

3,146,000
2,725,000
1,364,000

26,794,000
26,146,000
25,310,000

$ 29,647,000
22,871,000

1,250,000
1,492,000
924,000

793,000
841,000
642,000

1,071,000
1,026,000
744,000

470,000
433,000
398,000

4,056,000
4,342,000
3,175,000

$ 58,159,000
53,506,000

284,400,000
366,800,000
249,288,000

12,350,000
18,000,000
9,041,000

465,950,000
600,470,000
408,194,000

$ 24,102,000
21,160,000

19,964,000
18,567,000
18,124,000

$ 15,535,000
13,260,000

Corn (bus.) ...................

1941
1940
Av. 1930-1939

Cotton (bales)

..1941
1940
Av. 1930-1939

Cotton Seed (tons) ___

1941
1940
Av. 1930-1939

Tobacco (pounds)

1941
1940
Av. 1930-1939

29,622,000
32,640,000
26,901,000

91,122,000
100,509,000
99,861,000

Irish Potatoes (bus.) . .

1941
1940
Av. 1930-1939

1,920,000
2,320,000
2,99*7,000

6,916,000
10,286,000
10,661,000

Sweet Potatoes (bus.) .,

1941
1940
Av. 1930-1939

1,040,000
1,400,000
1,071,000

2,970,000
3,875,000
4,061,000

Oats (bus.) ....................

1941
1940
Av. 1930-1939

1,024,000
928,000
1,325,000

2,625,000
2,619,000
2,116,000

Wheat (bus.)

...........

..1941
1940
Av. 1930-1939

7,245,000
6,897,000
8,342,000

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

1941
1940
Av. 1930-1939

472,000
550,000
467,000

Hay (tons)

Peanuts (pounds)

........

1941
1940
Av. 1930-1939
1941
1940
Av. 1930-1939

Apples, Commercial (bus.) .




169,200,000
215,670,000
149,865,000
2,070,000
2,077,000
1,996,000

11,505,000
10,660,000
10,366,000

5,024,000
4,868,000
4,796,000

1,365,000
962,000
966,000

(Compiled January 2 1 , 1942)

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