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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.