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MONTHLY REVI EW o f Financial and Business Conditions F i f th F ederal Reserve Dist r ic t Federal Reserve Bank, Richmond 13, Va. "C 'A R M acreage goals in the Fifth District for 1945 are a little higher than planted acreages in 1944, and the coming crop will have to be harvested with fewer hands. This labor situation will be accentuated if some 25-30 thousand workers in deferred selective service status are inducted into the armed forces. On the other hand, crop yields per acre for the past three years have been higher than was reasonable to expect, and a return to an average growing season would not be beyond probability, in which instance the farm labor requirements would be lessened. There has been considerable reaction in several areas o f the District among men classified 4F, as well as among others whose early induction appears probable, in shifting their employment to es sential war jobs. A s to whether this trend will continue or whether labor turnover will be reduced will be in part determined by the final national attitudes on manpower policy. Such evidence as is available on the District’s physical volume o f production, other than farm production, indicates a slow downward trend. A ny basic improvement, however, in the man power situation should raise the production level. Department store trade in December, seasonally ad justed, receded 17 per cent from the record high month o f November, but held 11 per cent above a year ago. De partment store inventories at the beginning o f December declined 3 per cent from a month earlier whereas nor mally they should have risen 3 per cent. November 1 inventories, however were about the same level as on this date for the past three years. Wholesale sales o f drugs, dry goods, groceries, and hardware, seasonally adjusted, declined 3 per cent in December from November, but held January 31, 1944 2 per cent ahead o f December 1943. Investments in direct obligations o f the Government by the weekly reporting member banks o f this District rose $177 million, or 13 per cent from November 8 to December 20, which covered the period o f the Sixth W ar Loan. The chief increases in this period came in notes, which rose $77 m illion; in bonds, which rose $64 mil lion; and in bills, which rose $44 million. Offsetting these increases to the extent o f $8 million was a decrease in certificates. Between December 20 and January 17, bill holdings declined $8 million, certificate holdings rose $3 million; note holdings rose $14 million; and bond holdings rose $19 million. The in crease in this period amounted to $28 mil lion, making the total rise since the beginning o f the Sixth W ar Loan $205 million, or 15 per cent. Changes in loans made by the weekly re porting banks have been negligible over the past two months except for loans made to others to purchase or carry securities. These loans were at their lowest level since the Fifth W ar Loan on November 22 when they amounted to $27 million. Between November 22 and December 13 these loans in creased by $58 million to $85 million, but by January 17, $32 million, or more than half o f the increase, had been paid off. Although some o f these loans may have been made to purchase Sixth W ar Loan securities in anticipa tion o f dividend and interest checks at the year’s end it seems more probable that the $32 million already paid off was paid by selling the securities to banks. BUSINESS IN D E X ES— FIFTH FEDERAL RESERVE DISTRICT Average Daily 1935-39 = 100 Seasonally Adjusted Bank Debits ................................ ......... .............. Bituminous Coal Production* Building Contracts Awarded .. .............. Building Permits Issued ......... .............. Cigarette Production ................ Cotton Consumption* ............. ............. ......... ............... .............. Department Store Sales ........ Department Store Stocks .......... ......... .............. Life Insurance Sales ..................... ........ . Wholesale Trade— Four Lines .................... ......... Retail Furniture Sales ................................... * Not seasonally adjusted. Dec. 1944 231 118 96 42 155 133 208 162 120 177 166 Nov. 1944 226 146 r 81 48 162 149 251 159r 137 182 166 Oct. 1944 205 145r 72 48 152 142 224 171 146 175 163 Dec. 1943 191 147 151 50 193 147 187 166 % Change Dec. 1944 from Dec.’43 Nov.’44 + 2 — 19 +19 — 13 — 4 — 11 — 17 + 2 112 — 12 173 125 - 3 0 +21 — 20 —36 — 16 — 20 — 10 +11 — 2 + 7 + 2 +33 MONTHLY REVIEW 2 A g r ic u ltu r e in 1944 th e F ifth P r o d u c tio n F e d e ra l an d R e se rv e 1945 D is tr ic t G o a ls The W ar Food Administration has set food goals for 1945 at levels approximately as high as actual farm output in 1944, the year which set an alltime record in agricultural production in the nation. The reasons for setting the goals to compare with the peak production of last year are as follow s: The date of termination of hostilities is still indefinite, If is highly probable that victory over Germany will come by the close of the current calendar year. Whether or not this happens, a high level of farm production will still be necessary. When victory is achieved, the United States will have to provide foodstuffs for the European countries during their period of reconstruction and rehabilitation, and will even have to supply Germany with food until her farm land can once again be cultivated. In addition, when Germany is defeated, many American and Recommendations for 1945 for hay, soybeans, and tobacco were based on 1944 harvested acreage rather than on planted acreage as was the case with the majority of the crops. However, at the time that these goals were arrived at, the annual estimates of harvested acreage were not yet available, and July first data were used. Much of the land that farmers expected to harvest in mid-1944 was not harvested, due either' to unfavorable weather or to shortages of farm labor. The drought that hit Maryland, Virginia, and W est Virginia in the early fall was an important factor in the abandonment of 63,000 acres of a total of 173,000 acres of soybeans which farmers expected to harvest, according to mid-year intentions. The acreage of hay crops was also reduced because of the drought. The corn crop of W est Virginia was severely damaged for the same reason. Allied troops will be transferred to the Pacific theater, necessitating a continuing flow of supplies ; many will re- were set at almQSt the mam m Europe to aid m rehabilitation, and these, too, wi require maintenance of high farm production. The demobilization of the remainder of the forces cannot take place over night, a fact which must also be taken into consideration when food goals are established. If the war m Europe is not over by the end of t^ is year the need for farm products will of course be mam- acreage, which complied exactly with the 1944 goal in the case 0£ CQrn and exceedec[ ^ slightly in the case of wheat, Soybeans, on the other hand, fell far short in 1944 of ^ gQaj ,000 acres set; accordingly, the 1945 goal has been lowered t0 398,000 acres, but this is still 25 per cent above acreage harvested in 1944. The soybean acreage harvested in m 4 fell far short of the recom_ lamed at present levels. In either case, the W ar Foo Administration is o f the opinion that it is preferable or the United States to risk the possibility o f a surplus rather than to be caught short-handed. 1 Another reason for settmg goals close to 1944 levels of production is that yields have been exceptionally high both in 1943 and in 1944, due to good growing conditions, as well as to intensive cultivation. The same favorable conditions cannot be anticipated for 1945; therefore, if high acreages are planted, even if the yield is closer to average, production would probably still be high enough to fill requirements. mendations for that year in every state o f the District. North Carolina, the most important soybean state, harvested 196,000 acres in 1944, compared with the goal o f 400,000 acres; the 1945 goal is set at 12 per cent above cent 0f tJie 1944 goal. Virginia, the state second in importance, was asked to harvest 250,000 acres o f soybeans jn ] 944^ }mt latest data indicate an actual harvest o f only 63 000 acres The 1945 goal for that state> set Qn the 5asis o f j uly first indicatkms o f harvested acreage, is pIaced at 120,000 acres, close to twice the actual accomplishment in 1944. 1945 G oals C ompared W it h 1944 A creages T , , , 17 j a I? most cases, acreages set by the W ar Food Admims- . The peanut goal for 1945 was likewise lowered to bring it i° line with actual 1944 accomplishment. The three _producing states of the Federal Reserve 1 ]Za ™T ° tr , Corn and wheat goals for each state o f the District ise leyd of ^ m4 lanted 732 the actual harvested acreage of 1944, but is onlv 55 per /Hth District, Virginia, North Carolina, and South Carolina, ° • +^Cr^'N^v, tt 1 e* p S ° S n ' t tsons in the Fifth Federal Reserve District. were asked to plant 628,000 acres to peanuts grown alone for ^ ])Urpos‘; in 19H> ^ misse(f t he req* ested acre. ta b le l: age jg per cent. The 1945 goal for the three states was get 2 0 per cenj- lower than the W F A recommenda- acreage g oals compared with 1944 acreage, fifth fe d e r a l reserve district 1945 crop Hsirvested ^c'of8 1944 1944 C ™g i’864 Hay ail” tame................... ‘ 4*321 peanuts2 ............................................ Soybeans (for beans) ........................... Cotton .................. ............................... l^u^cured ............................................. Maryland................................................ ah other ” ! ! ! ! ” ! ! ! ! ! ” !.’ Sw^t ^Potatoes ‘ ‘ ‘ *.‘ ‘ ‘ ‘ ‘ * ‘ ‘ ’ ’ ‘ ‘ ' ' ‘ ’ ' — ------------------ , 11 102 126 512 308 1,887 95 125 ioo states, planted only 60,000 o f her 110,000-acre recommendation. 895.0 105 40 2 102 i7!o i9i5 121 Cotton acreage in 1945 is to be kept at exactly the same level as was planted in 1944, according to the W ar Food Administration. The 1944 acreage was extremely low, although it was equivalent to 95 per cent of the total acreage requested of the cotton states of the Fifth 105 2 Acreage grown alone for all purposes. 1 Percentages computed on the basis of 1944 planted acreages for corn, l^^harv^ted'^^reaV^fo^hay'.^os^'eaTis^an^^obacco^'^' ^ tion for 1944. Virginia came closest to fulfilling the 1944 request, falling short of the goal of 170,000 acres by only 10,000 acres or 6 per cent; North Carolina lacked 12 per cent of the 348,000 acre goal set for her for 1944; while South Carolina, the smallest of the three peanut b3SiS t i 1 . r District, but the Crop Was large, due to elimination OI submarginal land and to intensive cultivation of the MONTHLY REVIEW planted acreage. The goal set for 1945 is 5 per cent smaller than the goal of last year. Tobacco acreage is to be held at approximately the same level or sftghtly higher in 1945 than was actually harvested in 1944. The harvest in 1944 fell short o f the goal for that year by 37000 acres or 4 per cen t; the 1945 goal is 10,000 acres higher than the 1944 goal, for an aggregate o f all types o f tobacco. Flue-cured acreage of 935,000 acres is requested for 1945 in Virginia and the Carolinas. This is 5 per cent above the harvested acreage of 1944, with the largest increase, percentage wise, recommended in South Carolina. The actual addi tional acreage requested in South Carolina is 24,000 acres; that in North Carolina, 20,000 acres; while Virginia is asked to keep her harvested acreage precisely the same as it was in 1944. A smaller number of acres o f bur ley tobacco than was harvested in 1944 is recommended for 1945 both in Virginia and North Carolina; W est Virginia was requested to increase her harvest, which amounted to 3,000 acres in 1944, by 300 acres. Maryland tobacco is to continue at the same level as it has for several years. 1945 L i v e s t o c k G o a l s The situation with regard to livestock goals is very similar to that described above in connection with crops. The goals for 1945 were set very close to actual accom plishment in 1944, except that farmers were asked to raise 17 per cent more chickens in 1945 than they did last year, and that a reduction of 8 per cent in spring farrowings o f hogs was requested. The number o f cattle and calves on farms for the Dis trict as a whole is recommended to be increased over the number on farms on December 31, 1944, by only 3 per cent, from 3,178,000 to 3,285,000 head. The changes suggested for the five states varied somewhat, how ever: Number, Goal, Dec. 31, Dec. 31, 1944 1945 (Thous. of heads) Maryland .................................................... 366 370 Virginia ...................................................... ... 1,058 980 West Virginia ............................................. 610 613 North Carolina ........................................... 752 907 South Carolina ........................................... 392 415 3,285 Fifth District ............... .............................3,178 STATE Goal as % of Number 1944 101 93 100 121 106 103 The only state in which farmers were asked to increase their spring farrowings o f hogs was South Carolina. Other states were requested to decrease their spring farrowings by from 13 per cent in Virginia to 8 per cent in W est Virginia. Chicken production is to be increased 17 per cent in the Fifth Federal Reserve District in 1945, if farmers heed W F A requests. During the first few months of 1945, 100 per cent o f all live chickens marketed in the major producing counties o f Delaware, Maryland, Virginia, and W est Virginia will be set aside until military require ments are met. Most o f the suggested increase in 1945 was requested for the state of North Carolina as can be seen b elow : Goal as % of Number Raised, Goal, Number Raised, _______ 1944 1945 1944 (Thous. of heads) Maryland ............................................ 8,329 7,500 90 Virginia .............................................. ...18,233 16,162 89 West Virginia ..................................... 4,952 5,018 101 North Carolina ......................................22,399 36,000 161 South Carolina ................................... 9,248 9,248 100 Fifth District 63,161 73,928 117 STATE The 1945 milk production goal was placed at 5.7 billion 3 pounds for the Fifth Federal Reserve District as a whole, only 3 per cent higher than actual production in 1944. Production is to be increased in every state by only a small percentage, however, varying from 1 per cent, or 11 million pounds in W est Virginia, to 3 per cent each in Virginia and the Carolinas. The goal for 1945 for the Fifth District is less than 1 per cent above the recom mendation for last year. F a r m P r o d u c t i o n , 1944 For the United States as a whole, total agricultural production in 1944 was the highest in history, 33 per cent above the five prewar years, 1935-1939. This is not necessarily true o f the Fifth District, however, although farm production was at a high level here last year. The tobacco crop was unusually large in 1944, especial ly flue-cured and burley, the major cigarette types. The flue-cured crop in Virginia and the Carolinas in 1944 was 18 per cent higher than it was in the average o f the three prewar years, 1937-1939. Burley tobacco produced in 1944 was 37 per cent above the production o f the same prewar period. Demand for both o f these types o f tobacco and prices o f both are high at present, reflecting the high level o f cigarette consumption. Cigarettes are being consumed at the highest rate in the history o f the country, with the high level due in large part to the sharp increase in shipments to the armed forces abroad. The total number o f cigarettes shipped overseas in 1944 was probably in the neighborhood o f 110 billion, the equiva lent o f about one-third of the total output last year. The cotton crop in the three cotton-growing states of the Fifth Federal Reserve District in 1944 aggregated 1,575,000 bales, compared with 1,316,000 bales in 1943 and with 1,412,000 bales for the average o f the three years 1937-1939. The 1944 production represents an alltime record yield both in Virginia and in North Carolina. Acreages were small in 1944 for several reasons: (1 ) un favorable weather at planting time; ( 2 ) availability o f alternative crops, with greater returns, in many areas— for example, in regions where peanuts compete with cot ton for the use o f the land, many farmers gave peanuts preference, because o f favorable prices; (3 ) tight labor situation. Peanut production was likewise higher in 1944 than it was in previous years. Picked and threshed production exceeded the prewar average by 28 per cent in Virginia and the Carolinas. Peanuts have been an important source of oil since the war has closed off our important sources of oil in the Philippine Islands and the Netherlands In dies. In addition, salted peanuts and peanut butter are being used in the diet of the armed forces, and peanuts are included in the A rm y type C rations. Because o f this edible use, the W ar Food Administration issued orders early in January 1945, requiring shellers to set aside for military use 50 per cent o f their remaining stocks and subsequent purchases o f 1944-crop Spanish-type peanuts and 30 per cent o f Runner type peanuts. The quantities affected by this order, plus the volume previously desig nated for military use, is the equivalent of about 25 per cent o f the 1944 Spanish crop and 20 per cent o f the Runner crop, with about 45 per cent o f the Virginia crop already earmarked for military use. Details o f production o f individual crops in the various states o f the Fifth Federal Reserve District are pre sented in Table 2. MONTHLY REVIEW 4 T able 2 : PRODUCTION OF PRINCIPAL CROPS, FIFTH FEDERAL RESERVE DISTRICT, BY STATES (All figures in thousands) F if t h D ist r ic t C rops U n it Corn ...................................... bus. Wheat .................................. bus. Oats ......................-............... bus. All tame hay ....................... tons Peanuts for nuts ................. lbs. Soybeans for beans ........... bus. Tobacco: Flue-cured ......................... lbs. Burley ................................ lbs. Maryland ........................... lbs. All other .......................... lbs. Cotton ................................ bales Potatoes .............................. bus. Sweet Potatoes ................... bus. Average 1937-39 M aryland 1944 1943 139,777 26,503 21,653 4,141 454,329 2,552 135,563 20,505 25,328 4,620 514,040 3,836 137,532 34,442 29,487 4,179 580,725 3,564 817,098 23,716 28,267 21,321 1,412 26,892 18,574 713,730 25,614 20,827 11,866 1,316 29,642 18,723 967,800 32,430 32,160 16,075 1,575 18,274 21,266 C rops U n it 1943 17,622 8,247 1,007 538 11,804 4,913 1,032 556 17,150 8,906 1,170 486 167 324 455 28,267 2,780 1,090 20,827 1944 Average 1937-39 1943 1944 12,575 2,101 1,751 826 14,042 1,053 1,599 964 10,426 1,680 1,430 805 12 39 2,772 2,805 Average 1937-39 1,824 1,280 1,980 960 1943 Average 1937-39 1943 1944 36,403 8,507 2,203 1,332 164,347 509 33,275 5,863 2,860 1,418 174,720 1,056 34,272 11,275 3,672 1,357 197,500 945 84,370 12,550 85,050 12,500 106,000 14,880 21,321 23 9,936 4,001 11,866 24 9,594 2,976 16,075 30 5,976 3,960 32,160 N orth C a r o l in a W e s t V ir g in ia Corn ...................................... bus. Wheat .................................. bus. Oats ...................................... bus. All tame hay ...................... tons Peanuts for nuts ................. lbs. Soybeans for beans ........... bus. Tobacco: Flue-cured ........................ lbs. Burley —.............................. lbs. Maryland ........................... lbs. All other ........................... lbs. Cotton ................................ bales Potatoes .............................. bus. Sweet Potatoes . ................ bus. V ir g in ia Average 1937-39 South 1944 C a r o l in a Average 1937-39 1943 1944 22 47,929 5,774 5,630 1,036 281,020 1,800 51,018 5,812 5,977 1,216 301,920 2,313 51,524 8,928 8,151 1,121 360,825 2,058 25,248 1,874 11,062 409 8,962 64 25,424 2,864 13,860 466 37,400 104 24,160 3,653 15,064 410 22,400 84 542,200 10,412 733,000 15,000 86,480 128,800 2,550 619,275 8,394 113,453 2,702 2,775 2,040 542 8,633 8,466 596 12,100 7,566 700 6,970 8,970 847 2,738 5,017 696 3,193 7,221 845 1,464 7,056 MONTHLY REVIEW 5 The Sixth War Loan The Sixth W ar Loan distribution of Government se curities in the Fifth Federal Reserve District o f $1,246 million was the largest on record, having exceeded the previous high o f the Fifth W ar Loan by $33 million, or 2.7 per cent. This record was due wholly to an increase o f $143 million, or 51 per cent, in purchase o f 2 per cent bonds since all other issues were purchased in lesser amounts than in the Fifth W ar Loan. The 2 per cent bonds have been in strong demand from banks for some time. Since banks have not been permitted to purchase 2 per cent bonds direct from the Treasury, but must obtain them in the market, it is ap parent that the large purchases recorded by other inves tors will in part find their way into bank portfolios in the next several months. This District failed to maintain the proportion o f all Sixth W ar Loan sales in the United States which it established in the Fifth W ar Loan. In each preceding W ar Loan, the Fifth District had shown a steadily rising percentage o f the United States total until 5.88 per cent was reached in the Fifth W ar Loan. The District’s per centage o f the Sixth W ar Loan was 5.76 per cent. Individuals of this District purchased $481 million of securities in the Sixth W ar Loan which was $36 million or 7 per cent less than they purchased in the Fifth Loan. Other investors, however, purchased $765 million o f se curities in the Sixth Loan, an increase o f $67 million, or 10 per cent more than they bought in the Fifth Loan. Individual purchases in the Sixth Loan relative to the Fifth declined most in Certificates and next in l j4 per cent notes. According to the holdings o f weekly reporting member banks of this District, neither Certifi cates nor notes were 111 demand by banks between the Fifth and Sixth W ar Loans. This may have accounted for the lessened demand for these issues by individuals. Sales to individuals and to other investors from the Sec ond to the Sixth W ar Loans are shown in the accom panying table. TABLE 1 : TOTAL GOVERNMENT SECURITY PURCHASES FIFTH DISTRICT (million dollars) Individuals Others Total Amt. % Amt._____ % Second ............................. Third ............................... Fourth ............................ Fifth ................. ............... Sixth ............................ U 597 972 881 1,214 1,246 se of 212 355 364 516 481 Bank 36 37 41 43 39 385 617 517 698 765 64 63 59 57 61 L oans In spite o f the record level o f W ar Loan Security pur chases and especially the record purchases o f 2 per cent bonds, the amount o f bank loans made by the weekly reporting member banks to finance bond purchases in the Sixth W ar Loan was considerably less than in the Fifth W ar Loan, but much more than in the Fourth as the accompanying table shows : TABLE 2: LOANS FOR PURCHASING OR CARRYING SECURITIES TO OTHERS* Date Fourth War L oan..Jan. 12 Fifth War L o a n ....J u n e 7 Sixth War L o a n ....N o v . 22 (million dollars) Amount Date 22 20 27 Feb. 9 July 5 Dec. 13 * Weekly Reporting Member Banks— Fifth District. Amount 32 109 85 Change +10 + 89 +58 Loans for purchasing or carrying securities to “ others” were at their lowest point just preceding: each W ar Loan during 1944, and from the first column o f figures shown in the above table it is apparent that these loans had shown little change in level at the beginning o f each of the W ar Loan Drives made in that year. This would indicate that the securities had either been bought for speculative purposes, or that the loans had been paid off from sub sequent cash received by the borrower between Drives. The rate at which the loans have been paid off seems to indicate considerably more speculation in the Fifth Drive than in either the Fourth or Sixth, and more speculation in the Sixth than in the Fourth. T ypes of S e c u r it i e s P u r c h a s e d The chief changes in the type of issues purchased by investors in this District in the Sixth W ar Loan relative to the Fifth were an increase in the importance o f 2 per cent bonds and decreases in the importance o f all other issues with the chief decrease in % per cent Certificates. Purchases o f 2 per cent bonds in the Sixth W ar Loan accounted for 33.8 per cent o f the District's total pur chases. This is the greatest importance which inter mediate term bonds have had in any o f the six W ar Loans, the Fifth Loan proportion being 23.0 per cent of the total purchases and the Third Loan 29.8 per cent of the total. A s has been previously mentioned, demand for intermediate term bonds by banks has been strong, and sales o f market issues to non-bank investors have seemed to follow this demand. Certificate holdings by the weekly reporting member banks o f the District were at their highest level on A u gust 16, 1944, at $333 million, which was $85 million higher than at the turn o f the year 1944 ; these holdings picked up $10 to $327 million during the Sixth W ar Loan Drive, but by January 10, 1945, they had receded to $307 million. It is true, o f course, that country banks are using Certificates to a greater extent for reserve purposes, but even so, demand for Certificates has not been insistent at prevailing prices. This seems to line up with the Certificate purchases in the Sixth W ar Loan Drive which for this District totaled $279 million, a de crease o f 17.5 per cent from the amount purchased in the Fifth W ar Loan Drive. Certificates accounted for 22.4 per cent of all securities sold in the District in the Sixth W ar Loan; 27.9 per cent in the F ifth ; and 29.1 per cent in the Fourth, w^hich was the peak o f importance for these securities. Note holdings o f the weekly reporting member banks o f the District rose notably during 1944, except from the end o f the Fifth W ar Loan Drive to the beginning o f the Sixth when these holdings fell $27 million, probably in part due to maturities. Note issues were in demand by banks o f the District during the Sixth Drive and have risen some since the Drive ended. It is somewhat sur prising, therefore, that purchases o f 1J4 per cent notes in the Sixth W ar Loan Drive, amounting to $114 mil lion, were 20 per cent less than in the Fifth W ar Loan Drive. Since purchases of these securities by individuals recorded much the same dollar loss as shown by all pur chases, it may be that requests by the Treasury fo r issti- MONTHLY REVIEW 6 ing agents to police the subscriptions had some effect in this issue, despite the fact that no such tendency was in evidence in case of the 2 per cent bonds. Then, too, it is possible that the relatively greater attraction and better profit opportunity shifted purchases from the 1^ per cent notes to the 2 per cent bonds. Series C savings notes purchased in the amount o f $113 million in the Sixth W ar Loan Drive were 9.2 per cent lower than similar notes purchased in the Fifth Drive. Investors acquired $360 million o f these notes during the three Drives in 1944, compared with $221 million in the two Drives o f 1943, and this fact together with many reductions here and there in corporation tax liability seems related to the reduced purchases o f these securi ties. T ax and savings notes accounted for 9.1 per cent of all securities bought in the Sixth W ar Loan, which con tinues the trend toward a progressively lower proportion that has been in evidence since the Third W ar Loan. Series E savings bond purchases in the Sixth W ar Loan Drive were within $61,000 of the amount bought in the Fifth Drive. These securities accounted for 16.7 per cent of all purchases in the Sixth Drive compared with 17.2 per cent in the Fifth and 24.2 per cent in the Fourth. Series E bond percentages of total purchases in the Fifth and Sixth Drives were more in line with the proportions established in the first three Drives, whereas the Fourth Drive was well above the average. Purchases of Series F and G bonds, amounting to $45,137,000 in the Sixth W ar Loan Drive, were 14.2 per cent less than in the Fifth Drive and were approximately at the same level as in the Second Drive. These securi ties were purchased in the largest amount during the Fourth Drive, when $63,364,000 were bought, but their importance in total security purchases was greatest in the Second Drive. The District failed to maintain pace with the United States in total Sixth W ar Loan purchases; but in pur chases o f l j 4 Per cent notes, 2 per cent bonds, and Series E savings bonds this District ran ahead of the rate o f purchase in the United States. The statistics o f pur chases by issues, together with the percentages o f the United States totals, are as follow s: TABLE 3 : WAR LOAN PURCHASES OF GOVERNMENT SECURITIES BY NON-BANK INVESTORS— FIFTH DISTRICT (million dollars) Notes 1% % Bonds* 2% 40.1 112.9 289.8 181.1 279.2 422.4 Tax 'Bonds & Sav. Savings Bonds 2% % Notes Ser. E Ser. F & G Total 20.2 296.7 46.1 60.7 70.2 44.8 596.7** 108.9 83.3 96.0 972.4 53.9 160.1 133.3 137.5 881.0 213.3 62.4 122.5 45.2 1,213.5 124.6 208.4 52.6 69.7 1,246.4 45.1 208.4 113.2 65.0 Cert. War Loan Vs% First ..,, . 59.4 Second .., . .150.1 Third . .. 197.8 Fourth ... . .256.5 Fifth . . , 338.0 Sixth . . . , ,278.9 141.0 113.5 First ___ . . Second . . . . Third ... Fourth . .. . Fifth , , . . . Sixth . . . (Per Cent of United States Total) 4.00 2.47 4.57 7.18 6.52 5.04 2.89 4.01 3.53 5.54 6.48 5.51 6.69 5.49 2.36 5.44 4.84 6.87 3.08 7.24 5.34 4.66 7.27 2.40 7.32 6.09 3.57 4.84 4.80 5.09 7.09 6.33 6.94 6.72 6.49 6.09 6.43 6.28 4,34 4.43 5.13 5.27 5.88 5.76 ♦First, 1 % % ; Fourth, 2%%. ** Inclures unallocated amount of $690,000. T ype of P urchaser Individuals, partnerships, and personal trust accounts ranked first in importance as buyers o f Sixth W ar Loan securities, a position these buyers have held since the Fourth W ar Loan. However, individuals, etc., accounted for but 38.6 per cent o f all Sixth W ar Loan purchases, whereas they accounted for 42.5 per cent in the Fifth Loan, and 41.3 per cent in the Fourth. Individuals’ purchases in the Sixth Loan o f $480.7 million declined $35.5 million, or 7 per cent, from their purchases in the Fifth Loan. This was mainly due to a decline in indi vidual purchases o f marketable securities since their re duced purchases o f % per cent certificates and 1^4 P^r cent notes more than offset increases in 2 per cent and 2y2 per cent bonds. H owever, individuals’ purchases o f non-marketable securities were highest in the Fourth W ar Loan, and successively lower purchases have resulted in the two succeeding W ar Loans. W hile data on wages and salaries paid in the District during 1944 are not avail able, there are factors that indicate such incomes were still in a rising trend. Savings banks, all o f which are located in Maryland, increased their purchases in the Sixth Loan over the Fifth by 52 per cent with substantially increased purchases o f 2 per cent bonds and 1J4 per cent notes greatly exceeding smaller purchases o f other securities. Savings banks ac counted for 5.5 per cent o f the District’s Sixth W ar Loan purchases which is a percentage higher than in the Fifth Loan, but about in line with the Fourth and somewhat lower than in the Second and Third. Insurance companies bought $84.2 million o f securities in the Sixth W ar Loan,'which wras $19.4 million, or 30 per cent, more than they purchased in the Fifth Loan. Insurance companies, like the savings banks, accounted for a larger percentage o f total Sixth W ar Loan purchases than Fifth W ar Loan purchases, but the Sixth Loan proportion was about the same as in the Fourth Loan and smaller than either the Second or Third. Dealers and brokers, who have never been o f any great importance as government security purchasers, in the W ar Loan offerings, purchased $4.7 million in the Sixth W ar Loan Drive. This was a decrease o f $10.5 million, or 69 per cent, from their purchases in the Fifth W ar Loan Drive. This reduction was in harmony with Treasury policy o f attempting to sell as many securities to non-bank investors as possible, as dealers and brokers’ chief customers for Government securities are the banks. Federal agencies and Federal trust funds purchased $19.7 million o f Fifth W ar Loan securities, but in the Sixth W ar Loan these purchases practically vanished. States and local governments increased Sixth W ar Loan purchases over Fifth Loan purchases by $20.3 mil lion, or 16 per cent, though it is understood that one state sold a large sum o f Certificates purchased in the Fifth W ar Loan and purchased a similar amount of Certificates in the Sixth Loan. States and local govern ments accounted for 11.5 per cent o f Sixth W ar Loan purchases, which is the largest proportion these purchasers have accounted for in any o f the Drives. All other non-banking corporations and investors bought $464.9 million Sixth Loan securities to account for 37.3 per cent o f the total sales in the District. Sixth W ar Loan purchases by these investors were a high record for all W ar Loans and $35.5 million, or 8 per cent, above their Fifth W ar Loan purchases. These investors in creased their takings o f % per cent certificates and 2 per cent bonds sufficiently to offset reduced takings o f other types o f securities. 7 MONTHLY REVIEW Statistics o f the types o f purchasers and the amounts purchased, together with individuals, partnerships, and personal trust account purchases by type o f security fo llo w : TABLE 4: WAR LOAN SECURITY PURCHASES BY TYPE OF PURCHASER— FIFTH DISTRICT 1. 2. 3. 4. 5. Individuals, etc................... Savings banks.................... Insurance companies........ Dealers and brokers.......... Federal Agencies and trust funds ................................... 6. State and local govern ments ....................... ......... Total .......... (million dollars) 2nd 3rd 212.4 354.7 74.1 41.7 60.3 70.5 * 24.3 4th 363.7 46.6 53.5 18.4 6th 480.7 68.3 84.2 4.7 5th 516.2 45.0 64.8 15.2 4.0 6.6 6.5 19.7 .1 57.6 220.8 596.8 77.0 365.2 972.4 67.2 325.1 881.0 123.2 429.4 1,213.5 143.5 464.9 1,246.4 * Included in “all other.” TABLE 5: GOVERNMENT SECURITY PURCHASES BY INDIVIDUALS, PARTNERSHIPS, AND PERSONAL TRUST ACCOUNTS FIFTH DISTRICT War Cert. Loan %% Second ............. 12.3 Third ................15.1 Fourth ..............45.8 Fifth ................83.4 Sixth ..................21.9 (million dollars) Notes Bonds Bonds Ser. C Savings Bonds l*/i% 2’s 2 ^ % NotesSer. E Ser. F & G ____ ___33.1 35.3 9.7 96.0 26.0 ____ ___100.5 34.8 10.2 160.1 34.0 ____ ___45.6* 17.3 8.4 213.3 33.3 47.7 112.6 24.0 6.4 208.4 33.7 19.8 167.3 26.5 5.8 208.4 30.9 Total 212.4 354.7 363.7 516.2 480.7 he R ecord of t h e S tates The District’s record high level o f Government security purchases in the Sixth W ar Loan was caused by in creased purchases in Virginia, W est Virginia, and North Carolina, more than offsetting decreased purchases in Maryland, District o f Columbia, and South Carolina. All o f the states increased their purchases o f 2 per cent bonds in the Sixth W ar Loan Drive, compared with the Fifth, but this was the only uniform performance shown. The three states which increased total puchases in the Sixth W ar Loan compared with the Fifth increased their purchases o f % per cent Certificates, where as these Certificate purchases decreased for the remaining states. A ll states except the District o f Columbia de creased their purchases of 1% per cent notes. Series E Savings Bond purchases in the Sixth W ar Loan exceeded those in the Fifth W ar Loan in W est Virginia and North Carolina only, while Series F and G Savings Bond pur chases were reduced in all states except Virginia. Comparative total W ar Loan purchases by states are shown in the accompanying table: TABLE 6 : WAR LOAN PURCHASES BY NON-BANK INVESTORS FIFTH FEDERAL RESERVE DISTRICT Second 189,694 Md........................... ,, . 78,888 D. C....................... Va........................... 54,747 W. Va................... N. C....................... ,. . 109,854 . 43,041 . 596,754 Fifth District.. Md......................... D. C..................... Va......................... W. Va................... N. C..................... Fifth District... (thousand dollars) Third Fourth 330,678 280,170 110,014 102,811 193,819 184,857 84,463 68,239 182,473 171,971 78,135 65,745 972,379 880,996 Per Cent of Fifth District Total 34.0 31.8 31.8 12.5 10.6 13.2 21.0 19.9 20.2 7.7 9.2 8.7 18.8 19.5 18.4 8.0 7.5 7.2 100.0 100.0 100.0 Fifth 421,797 152,107 220,343 100,698 235,256 83,333 1,213,534 Sixth 416,691 141,159 247,935 112,774 248,364 79,492 1,246,415 34.7 12.5 18.2 8.3 19.4 6.9 100.0 33.4 11.3 19.9 9-1 19.9 6.4 100.0 uota A t t a in m e n t All quotas in the states o f the Fifth District were made in the Sixth W ar Loan Drive with the exception o f the Series E savings bond quota in Maryland. The overall quotas for the states o f the District were made by a margin of 50 per cent or better, with all of the states, except the District o f Columbia, ranking above the median o f per formance o f all states in the nation. Four of the Dis trict’s states were in the top fourth o f the states o f the nation as regards overall quota accomplishment, but four of the District’s states also were lower in rank in the Sixth W ar Loan than in the Fifth. The Fifth District in the aggregate exceeded all quotas by a larger percentage in the Sixth W ar Loan than in either the Fifth or Fourth, and exceeded the performance of the United States in the Fifth and Sixth W ar Loans for each class o f investor on which a quota was established, as the accompanying table show s: TABLE 7: * 2%% T Q Md.......... D. C. .. Va.......... W. Va.* N. C. .. S. c. .. Total U. S. .. . . . . . . . All 4th 147 116 129 136 137 122 134 120 PERCENTAGE OF WAR LOAN QUOTAS ACHIEVED Investors 5th 6th 185 198 142 150 140 182 195 209 159 205 144 162 163 188 129 154 Individuals, etc 4th 5th 6th 104 196 133 97 93 117 102 113 143 103 143 175 107 116 155 102 112 138 103 136 142 97 106 118 Ser. 4th 81 115 116 107 103 100 102 106 E. Bonds 5th 6th 83 94 110 116 117 137 104 111 100 124 119 132 103' 118 101 115 Corps. & Other 4th 5th 6th 187 176 265 140 207 182 162 170 222 173 267 254 173 199 256 152 178 188 170 191 236 134 143 175 * Entire state. The high rank o f Fifth District states in per cent o f all investor quota achievement in the Sixth W ar Loan was due primarily to purchases by individuals other than Series E bond purchasers and to corporations and other investors, since three o f the states were on or below the median o f states o f the nation in Series E bond quota attainment. The ranks o f Fifth District states among the states o f the nation are shown in the accompanying table with revisions for the Fifth Loan incorporated. TABLE 8 : RANKS OF FIFTH DISTRICT STATES IN ACHIEVEMENT OF FIFTH AND SIXTH WAR LOAN QUOTAS Md............... D. C............ Va.............. W. Va. .. N. C........... S. C.......... All Investors 5th 6th 4 3 14 27 17 9 2 1 3 9 13 16 Individuals, etc. 5th 6th 2 13 40 21 22 9 9 1 21 2 23 10 Ser. E Bonds 5th 6th 49 49 25 17 12 5 34 28 14 37 8 12 Corps. and Other 5th 6th 11 3 3 26 14 11 1 7 5 6 10 21 The maps on page 8 show the degree o f achieve ment o f overall and Series E bond quotas by counties with independent cities incorporated in the counties where they are located. All counties except one in the District at tained their overall quotas, but 45 counties o f the District did not meet their Series E bond quota. Out o f 319 county units which reported separate sales, 67 reported sales less than 150 per cent o f overall quotas; 144, be tween 150 and 200 per cent; 90, between 200 and 300 per cent; and 18, over 300 per cent. Attainment o f Se ries E bond quotas show 45 counties under 100 per cent; 127 counties between 100 and 130 per cent; 108 counties between 130 and 160 per cent; 28 counties between 160 and 190 per cent; and 11 counties over 190 per cent. MONTHLY REVIEW 8 TOTAL S A L E S - SIXTH WAR LOAN SERIES "E" BOND SA LES-SIXTH WAR LOAN FIFTH DISTRICT BY COUNTIES FIFTH DISTRICT BY COUNTIES BUSINESS IN D E X E S— FIFTH FEDERAL RESERVE DISTRICT Seasonally Adjusted Average Daily 1935-39 = 100 Bank Debits ................................. —.......................... Bituminous Coal Production* ..... Building Contracts Awarded .. ...................... Building Permits Issued .............. .......................... Cigarette Production ......... ......................... Cotton Consumption* .......... Department Store Sales .......... . .................... Department Store Stocks .............. .................... Electric Power Production ------------------ ------Employment— Mfg. Industries* ..... . ................. Furniture Orders ................................. ....... ...... Furniture Shipments ...................... ................ Furniture Unfilled Orders ........... Life Insurance Sales ................................ ........ Wholesale Trade— Four Lines . ....... .................... Wholesale Trade— Drugs .............. ...................... Wholesale Trade— Dry Goods ................................ Wholesale Trade— Groceries .................................... Wholesale Trade—Hardware ................................... Retail Furniture Sales ............................................... * Not seasonally adjusted. Nov. 1944 Oct. 1944 226 146r 81 48 162 149 251 161 215 138 163 142 494 137 182 232 98 200 94 166 205 145 r 72 48 152 142 224 171 211 137 157 131 458 146 175 239 115 188 92 163 Sept. 1944 Nov. 222. 197 124 207 50 194 153 215 155 217 150 184 142 452 146 121 40 153 141 214 181 217 139 115 110 334 138 156 225 96 168 81 150 1943 120 174 193 110 187 113 133 % Change Nov. 1944 from Oct J44 Nov. ’43 +10 + 1 +13 0 + 7 + 5 +12 — 6 + 2 + 1 + 4 + 8 + 8 — 6 + .4 — 3 — 15 + 6 + 2 + 2 +15 + 18 —61 — 4 — 17 — 3 +17 + 4 — 1 — 8 — 11 0 + 9 + 14 + 5 +20 — 11 + 7 — 17 +25 MONTHLY REVIEW FEDERAL RESERVE BANK OF RICHMOND (All Figures in Thousands) DEBITS TO INDIVIDUAL ACCOUNTS (000 omitted) ITEMS Total Gold Reserves ................ . Other Reserves ....................... Total Reserves ..................... Bills Discounted ................. Industrial Advances ............ Gov’t. Securities, Total .......... Bonds ..................................... Notes ..................................... Certificates ........................... Bills ....................................... Total Bills and Securities Uncollected Items . . .... Other Assets ............................. Total Assets ......................... Jan. 17 1945 $ 945,813 18,703 964,516 2,500 126 1,154,949 77,074 100,479 313,417 663,979 1,157,575 146,897 20,956 $2,289,944 Change in Amt. from 1-12-44 12-13-44 — 169,834 — 27,533 — 11,119 + 6,280 — 180,953 — 21,253 + 1,660 + 1,950 — 101 — 6 + 608,978 — 38,938 — 47,123 + 13,295 + 33,536 + 20,943 + 46,8^8 + 95,872 + 575,667 — 169,048 + 607,217 — 36,994+ 37,796 — 8,443 — 9,195 + 8,502 + 454,865 — 58,188 Fed. Res. Notes in Cir............. Deposits, Total ............... Members’ Reserves ............. U. S. Treas. Gen. Acct. .. . Foreign ................................... Other Deposits ..................... Deferred Availability Items Other Liabilities ............... . Capital Accounts ................... Total Liabilities ................ $1,479,908 670,447 603,974 16,886 46,563 3,024 116,882 377 22,330 $2,289,944 — — — — + — — — + — 8,533 46,513 31,113 16,511 1,837 726 3,307 324 489 58,188 + 350,504 + 80,048 + 104,102 — 14,966 — 9,375 + 287 + 21,256 + 484 + 2,573 + 454,865 41 REPORTING MEMBER BANKS— 5th DISTRICT (All Figures in Thousands) ITEMS Total Loans ............................... Bus. and 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 and Sec. Cash Items in Process of Col. Due from Banks ....................... Currency and Coin ................. Reserve with F. R. B a n k ........ Other Assets ............................. Total Assets ............................... 1945 $ 321,667 142,315 47,065 132,287 1,657,404 113,917 311,180 327,627 825,913 19,244 59,523 97,213 169,080 36,724 308,3'83 65,855 $2,656,326 Deposits of Individuals ........ Deposits of U . S. Gov............ Depos. 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 ................ Capital Accounts <................. Total Liabilities $2,154,181 1,166,331 472,247 73,952 421,424 20,227 295,797 281,937 13,860 2,500 85,489 118,359 $2,656,326 12-13-44 — 37,058 — 1,631 — 1,227 — 34,200 48,442 + — 7,618 — 2,174 + 22,522 + 26,671 3,237 + 5,804 + — 9,222 — 16,410 — 5,198 — 28,136 — 2,448 — 50,030 1-12-44 + 82,554 + 12,614 — 1,875 + 71,815 + 317,595 + 20,875 + 58,459 + 136,525 + 124,889 — 22,412 — 741 + 20,044 + 33,499 + 4,915 + 49,365 + 3,527 + 511,499 63,385 14,115 14,952 3,649 29,717 952 5,918 5,901 17 2,500 3,859 1,078, 50,030 + 448,214 + 105,059 + 280,927 — 1,419 + 58,250 + 5,397 + 41,703 + 44,487 — 2,784 ___ — — — — — + + + + + + — 0 + 15,357 + 6,225 + 511,499 * Net figures, reciprocal balances being eliminated. DEPOSITS IN MUTUAL SAVINGS BANKS 8 Baltimore Banks Total Deposits Dec. 31, 1944 $295,619,832 Nov. 30, 1944 $292,785,086 COTTON CONSUMPTION—FIFTH DISTRICT In Bales No. Carolina So. Carolina Virginia MONTHS 158,634 17,318 December 1944.. 196,432 172,578 20,099 225,508 November 1944.. 179,361 19,714 226,172 December 1943.. 2,003,691 226,192 12 Months 1944.. . 2,601,123 2,136,925 248,392 12 Months 1943.. . 2,790,749 9 Dec. 31, 1943 $258,926,658 Dist. of Columbia Washington December 1944 % chg. from Dec. 1943 $ 552,456 12 Mos. 1944 % chg. from 12 Mos. 1943 7 $ 5,8"5,702 894,003 15,145 12,708 18,172 + 11 + 12 + 4 — 2 9,272,545 160,505 148 434 204,952 + 8 + 13 + 15 + 9 North Carolina Asheville .......... Charlotte .......... Durham ............ Greensboro . . . . Kinston ............. Raleigh ............. Wilmington . . . . Wilson ............. Winston-Salem . 30,661 149,684 80,945 41,086 11,271 80,324 44,178 24 490 77,616 + 20 + 21 + 5 + 15 + 49 + 40 + 19 + 175 + 6 294,146 1,552.339 909,146 421,637 133,952 681,617 462,298 189,727 812,752 + 16 + 13 + 14 + 9 + 18 + 9 + 4 + 22 — 2 South Carolina Charleston ........ Columbia .......... Greenville .......... Spartanburg . . . 45,750 '59,778 44,262 24,610 + + + + 12 7 15 13 476,461 606,950 467,461 267,604 Virginia Charlottesville . Danville ............ Lynchburg ........ Newport News . Norfolk ............. Portsmouth . . . . Richmond .......... Roanoke . . . . . . . 20,743 30,415 25,273 27,632 145,192 20,824 493,848 53,420 + + + — + + + + 43 23 4 4 6 14 41 28 192,300 235,219 258,182 309,022 1,468,042 194,323 4,136,785 510,834 West Virginia B1 uefield .......... Charleston ........ Clarksburg . . . . Huntington . . . . Parkersburg . . . District Totals . . . 29,814 103,240 20,982 42,153 18,853 $3,239,528 + 7 + 10 + 21 + 30 + 18 + 16 285,956 1,011,594 191,052 386,961 200,918 $32,339,416 Maryland * Baltimore .......... Cumbsrland . . . . Frederick .......... Hagerstown . . . . + + + + + 6 1 0 4 8 + 31 + 11 + 7 + 1 + 1 — 1 + 13 + 14 + + + + + + 14 10 17 19 16 8 COMMERCIAL FAILURES PERIODS December 1944 November 1944 December 1943 12 Months 1944 12 Months 1943 Number of Failures District U. S. ....................1 93' ....................1 75 ....................2 145 ......... 14 1,222 ......... 47 3,221 Total Liabilities District U. S. $ 31,000 $ 1,804,000 8,000 3,008,000 5,000 2,055,000 791,000 31,660,000 1,105,000 45,339,000 Source: Dtm & Bradstreet. COTTON CONSUMPTION AND ON HAND— BALES Fifth District States: Cotton consumed .......... Cotton Growing States: Cotton consumed .............. Cotton on hand Dec. 31 in Consuming establishments Storage & compresses .. . United States: Cotton consumed .............. Cotton on hand Dec. 31 in Consuming establishments Storage & compresses . . . Spindles Active, U. S. . . . December 1944 December 1943 372,384 425,247 2,002,936 2,102,418 673,064 748,631 3,558,667 3,741,274 2,051,424 13,271,380 2,101,042 12,443,569 4,027,236 4,272,392 760,740 851,180 2,318,656 13,396,441 22,219,768 2,400,087 12,664,488 22,573,582 Aug. 1 to Dec. 31 1944 1943 RAYON YARN DATA District 372,384 418,185 425,247 4,831,006 5,176,066 Dec. 1944 Nov. 1944 Dec. 1943 Rayon Yarn Shipments, L b s.... Staple Fiber Shipments, Lbs , . . 49,000,000 13,600,000 48.300.000 13.900.000 43.200.000 14.500.000 Rayon Yarn Stocks, Lbs. .......... Staple Fiber Stocks, Lbs.............. 6,100,000 2,700,000 8,600,000 2,700,000 6,100,000 1,800,000 Source : Rayon Organon. MONTHLY REVIEW 10 BUILDING PERMIT FIGURES RETAIL FURNITURE SALES Fifth Federal Reserve District, December 1944 and 1943, and Annual Valuation, 1944 and 1943 Dec.Valuation Figures 1944 1943 Maryland $ 578,240 $1,076,640 Baltimore ............... 1,982 1,050 Cumberland ........... 400 2,652 Frederick ............... 6,450 68,967 Hagerstown ............ 25,582 4,830 Salisbury ................ Virginia Danville ................. 36,396 5,755 14 395 5,226 Lynchburg .............. 44,440 102,928 Norfolk ................... Petersburg .............. 3.600 60,000 28,925 31,905 Portsmouth ............ 121,215 55,958 Richmond ............... 51,130 7,465 Roanoke ................. West Virginia 20,885 14,235 Charleston .............. 16,100 175 Clarksburg .............. 11,750 190 Huntington ............ North Carolina 4.600 4,410 Asheville ............... 46,896 30,400 Charlotte ............... 13,770 32,030 Durham ................. 24,553 8,178 Greensboro ............. 14,947 14,321 High Point ............ 23,200 465 Raleigh ................... 700 200 Rocky Mount .......... 50 585 Salisbury ................. 30,755 29,598 Winston-Salem ----South Carolina 20,013 102,358 Charleston ............. 8,630 20,035 Columbia ................ 8,225 11,350 Greenville ............... 50,464 8,575 Spartanburg .......... District of Columbia 990,412 921,452 Washington ........... District Totals ___ $2,198,705 $2,621,933 Annual Valuation Figures 1944 1943 $ 5,965,813 95,158 55,691 311,800 269,346 $12,787,743 304,773 36,157 445,968 84,584 151,959 132,801 1,441,055 25,530 575,519 2,212,630 320,040 105,337 74.301 2,973,978 64,740 3,419,488 1,375,567 153,943 509,614 69,067 285,208 280,932 25,621 196,223 231,346 803,171. 481,597 261,561 323,945 519,056 115,927 80,562 1,253,413 130,475 274,&11 455,928 125,839 274,384 182,539 16,565 54,052 343,754 480,034 158,985 166,025 474,546 1,224,004 223,288 128,529 284,547 13,029,527 19,278,051 $30,800,926 $45,326,121 Fifth District . . November 1944 $ 4,165,000 3,047,000 5,125,000 971,000 2,996,000 742,000 11 Mos. % chg. from % ehg. from Nov. 1943 1944 11 Mos. 1943 — 56 — 17 $ 80,806,000 — 14 — 35 26,482,000 — 65 101,382,000 — 38 + 36 + 175 22,625,000 — 60 40,801,000 — 53 — 89 19,455,000 — 60 $17,046,000 — 61 $291,551,000 Percentage Changes in Dec. and 12 Mos. 1944 compared with compared with 12 Months 1943 Dec. 1943 + 1 + 9 — 2 + 9■ + 12 + 6 + 10 + 9 + 24 + 13 + 18 + 5 + 12 + 4 INDIVIDUAL CITIES Baltimore, Md. (5)* . . . . Washington, D. C. ((5)* . Lynchburg, Va. (3)* . . . . Richmond, Va. (7)* ........ Charleston, W. Va. (3)* . Charlotte, N. C. (5)* ___ Columbia, S. C. (4)* . . . . * Number of reporting stores. Baltimore Dist. of Col. Smoking and chewing to bacco (Thousands of lbs.) 22,562 Cigarette (Thousands) . . . 17,826,170 Cigars (Thousands) .......... 395,499 Snuff (Thousands of lbs. .. 3,455 12 Mos. 1944 + 3 — 22 — 2 — 10 249,783 239,260,322 4,395,963 42,036 % change from 12 Mos/43 — — — — 5 7 9 3 AUCTION TOBACCO MARKETING Pr:ce per Hund. Producers’ Tobacco Sales, Lbs. 1944 1943 December 1944 December 1943 STATES $43.53 $38.53 13,710,026 N. Carolina (flue-cured) 39,357,357 49.02 49.44 3,919,720 (Burley) ..................... 4,120,255 40.96 17,629,746 44.05 N. Carolina, Total . . . . 43,477,612 43.74 39.24 9,747,868 Virginia (flue-cured) .. 15,534,981 25.03 27.07 1,302,438 2,146,940 (Fire-cured) ............... 6,899,772 45.12 (Burley) ..................... 5,252,480 48.83 635,542 165,226 27.22 39.92 (Sun-cured) ............... 18,115,304 Virginia, Total .............. 41.90 23,569,943 42.02 District Total. December 67,047,555 35,745,050 43.29 41.50 N. C. season to 12-31 .. 714,912,614 528,889,243 43.30 40.76 110,070,493 42.87 41.57 Va. season to 12-31 .. . 124,991,046 77,588,742 S. C. entire season........ 115,992,147 43.08 38.86 District, season to 12-31 955,895,807 716,548,478 43.22 40.68 Other Cities District Virginia West Va. N. Caro. S. Caro. WHOLESALE TRADE, 206 FIRMS Net Sales Stock Dec. 1944 Dec. 31, 1944 compared with compared with Dec. Nov. Dec. 31 Nov. 30 1943 1944 1943 1944 LINES % change from Dec. 1943 Washington Percentage change in Dec. 1944 sales from Dec. 1943 sales, by States: + 10 +10 +16 +15 +19 +14 Percentage change in 12 mos.’ sales in 1944 from same period in 1943: + 7 + 6 +16 + 15 +15 +12 Source: F. W. Dodge Corp. Dec. 1944 + 1 — 2 + 11 + 6 — 2 + 9 + 3 Percentage Change in Dec. 1944 sales, compared with sales in Dec. 1943: + 16 +10 +10 +18 +12 Change in 12 mos.’ sales in 1944, compared with 12 mos.’ sales in 1943: + 15 + 7 + 6 +17 + 9 Change in stocks on Dec. 31, 1944, from stocks on Dec. 31, 1943: — 2 — 2 — 5 + 6 — 2 Change in outstand’g orders Dec. 31, 1944, from orders on Dec. 31, 1943: + 29 +26 + 35 +35 +31 Chg. in total receivables on Dec. 31, ’44, from receivables on Dec. 31/43: + 15 +19 +14 +13 +16 Percentage of current receivables as of Dec. 1, 1944, collected in Dec.: 58 53 47 59 53 Percentage of intalment receivables as of Dec. 1, 1944, collected in Dec.: 36 33 23 41 28 — 34 TOBACCO MANUFACTURING + 9 + 9 + 21 + 8 + 14 +14 + 20 DEPARTMENT STORE TRADE Ricmond Maryland CONSTRUCTION CONTRACTS AWARDED STATES Maryland ........ Dist. of Columbia Virginia . . . . . . West Virginia North Carolina South Carolina STATES Maryland (5)* ................. Dist. of Columbia (5)* . . . Virginia (25)* .................. West Virginia (10)* ........ North Carolina (19)* . . . . South Carolina (13)* . . . . Fifth District (77)* . . . Auto Supplies (9)* . . . . 0 Drugs & Sundries (6)* .. — 8 Dry Goods (4)* ................ — 7 Electrical Goods (6)* . . . . — 1 Groceries (72)* ................ — 1 Hardware (14) * . . . . . . . . + 18 0 Industrial Supplies (8)* . Paper & Products (8)* .. — 14 Tobacco & Products (9)*. — 1 Miscellaneous (70)* ........ + 16 District Average (206)* •+ 2 — 9 — 4 — 21 — 24 — 11 — 5 — 14 — 13 — 16 + 5 — 7 + 24 + + 28 + 4 + 11 — 7 — i + i — 3 — 13 — 12 — 3 — i3 + 4 + 1 4 + ’i Ratio Dec. collections to accounts outstand’g Dec. 1 107 152 95 91 154 107 103 90 151 134 127 Source : Department of Commerce. * Number of reporting firms. SOFT COAL PRODUCTIONS IN THOUSANDS OF TONS West Virginia . . . Virginia ................ Maryland .............. 5th District . . . . United States '. . % in District . . Dec. 1944 10,714 1,376 114 12,204 44,735 27.3 Dec. % 1943 Change 14,540 — 26 — 18 1,678 — 24 150 — 25 16,368 54,225 — 18 30.2 12 Mos. 1944 163,515 19,309 1,915 184,739 618,605 29.9 12 Mos. % 1943 Change + 2 159,579 19,556 —1 1,856 + 3 180,991 + 2 + 5 590,177 30.7 11 MONTHLY REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) Production and employment at factories increased some what in December. Retail buying was exceptionally active in December and the first half of January and wholesale commodity prices advanced. Industrial Production Total industrial production was maintained in December at the level of the preceding month, which was 232 per cent of the 1935-39 average, according to the Board’s index. Manufacturing output showed a slight rise because of in creased output of war products, while minerals production declined, reflecting a sharp drop in coal production. Gains over the November levels of activity in the ma chinery, transportation equipment, chemicals, petroleum refining, and rubber industries followed a renewed drive to expand output of critical munitions. Military events in De cember resulted in higher production schedules for muni tions and in additional Federal measures to assure manpower for war output and to increase inductions into the armed services. Stringent limits were placed on the use of metals in civilian products under the programs initiated last fall. Output of metals decreased somewhat further in Decem ber. In the first three weeks of January steel production continued to decline, partly because of severe weather con ditions. Output of aluminum has been held at a level of about 90 million pounds per month since last autumn. The curtailment of aluminum sheet production during 1944 was reported in January to have led to a critical supply situation for this product in the light of the recently raised aircraft schedule. Lumber production showed the usual seasonal decline in December. Output for the year 1944 was about 5 per cent below 1943, and a further decline is expected in 1945 due to continued shortages of manpower and equipment. Cotton consumption and output of manufactured foods were maintained in December at the level of the preceding month. There were declines in shoe production and in ac tivity at paper mills. Output of coal in December was about 12 per cent below average production in the preceding 11 months. In order to assure supplies to meet the most essential needs, restric tions on less essential civilian uses of coal were instituted in January. Crude petroleum production was maintained in December in large volume, while output of iron ore showed the large seasonial decline customary in this month. Distribution During the November-December Christmas shopping sea son department store sales rose to new high levels and were 15 per cent larger than in the corresponding period a year ago. The high level of sales was maintained in the first half of January, taking into account usual seasonal changes in trade. Carloadings of railroad freight declined more than usual in December. During the first two weeks of January load ings were 5 per cent less than during the same period a year ago, owing to decreases in all classes of freight except miscellaneous shipments. Commodity Prices The general level of wholesale commodity prices advanced somewhat from the early part of December to the middle of January. Prices of most farm products were higher. After the middle of January grains and cotton declined but were still above early December levels. Steel scrap, which had been considerably below ceiling levels in the autumn, showed a sharp price rise. Prices of nonferrous metal scrap, cement, and various other industrial materials also increased in December and the early part of January. Bank Credit In the four weeks ended January 17, Government secur ity holdings at weekly reporting member banks increased further. Loans for purchasing and carrying Government securities declined from the level reached during the Sixth War Loan Drive; most of the decline was in the loans to customers, but loans to brokers and dealers also were re duced moderately. The Government securities added to reporting member bank holdings in this period consisted mainly of bonds and bills. Excess reserves held by member banks declined relatively little from the peak reached during the Sixth War Loan Drive. Reserve requirements increased, but member bank reserve balances also increased by approximately the same amount. Spending of Treasury balances and a reduction of nonmember deposits at Reserve Banks more than offset a decline in holdings of Government securities by the Fed eral Reserve Banks. Currency in circulation declined 130 million doPars during the fchree weeks following the Christ mas peak, the largest decline for any corresponding period since early 1942. Following the Sixth War Loan Drive, adjusted demand depos'ts renewed their increase, and time deposits increas:d at a more rapid rate than demand deposits. Between war loan drives, time deposits in all banks have been increasing at the rate of almost three-quarters of a billion dollars a month.