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MONTHLY REVIEW o f Financial and Business Conditions F ifth F ederal Rese r v e D is tr ic t Federal Reserve Bank, Richmond, Va. July 31, 1939 May 1939________ June 1939________ June 1938 Debits to individual accounts (24 cities)................... ......... Number o f business failures, 5th district............................. Liabilities in failures, 5th district........................................ Sales, 30 department stores, 5th district............................... Sales, 37 furniture stores, 5th district................................... Sales, 198 wholesale firms, 5th district................................. Registrations, new passenger autos, 5th district............... Value of building permits, 31 cities...................................... Value o f contracts awarded, 5th district............................... Cotton consumption, 5th district (B ales)............................. Spot cotton price, ^ per lb., end of month........................... Print cloths, 3 8 ^ in., 64x60s, end of month......................... Rayon yarn shipments, U. S. (P ounds)............................... Rayon yarn stocks, U. S. (Pounds).................... .................. Soft coal mined, U. S. (T o n s)................................................ L L important indicators of trade and industry in the Fifth Reserve district showed improvement in June as compared with June 1938, and practically all o f them also compared favorably with May 1939 figures, if seas onal trends be taken into account. The most outstanding improvement in June over June last year was in construc tion, which rose 70 per cent in value o f building permits issued and 54 per cent in contracts actually awarded. Much o f the large volume of construction work is partly financed by Federal grants or loans, and Federal insur ance o f loans through the F H A has also been an im portant factor in stimulating residential building. A Employment is better than in any other July in several years, not only in construction fields but also in textile plants, coal mines, tobacco factories, and many less im portant industries. Retail trade as reflected in depart ment store sales, furniture sales and registrations of new passenger automobiles is running considerably above the levels of this time last year. $1,162,879,000 48 $ 779,000 $ 9,989,266 $ 1,123,450 $ 11,519,000 19,822 $ 11,524,997 $ 31,619,000 292,286 9.40 4.25 25,900,000 41,500,000 17,880,000 $1,290,739,000 36 714,000 $ 9,143,000 $ 1,073,893 $ $ 11,413,000 18,177 $ 11,843,892 $ 46,154,000 274,367 9.33 4.625 32,900,000 32,800,000 28,506,000 $1,177,683,000 58 840,000 $ 8,958,690 $ 1,030,267 $ $ 10,029,000 12,443 6,985,851 $ $ 29,981,000 218,536 8.98 4.625 18,100,000 67,000,000 22,507,000 % Change Month Year 4-H —25 — 8 — 8 — 4 — 1 — 8 + 3 + 46 — 6 — 1 + 9 + 27 —21 +59 +10 •—38 — 15 + 2 + 4 + 14 + 46 +70 +54 +26 + 4 0 + 82 —51 + 27 Coal mines are unusually busy for this season, working to rebuild reserve stocks which were pulled down during the April and May shut-down in bituminous fields. Output of tobacco factories in June was very large, and produc tion o f cigarettes numbering 16,594,511,013 set a new record for a single month. Debits to individual accounts, reflecting transactions through banks, were 10 per cent higher in June this year than in June 1938, and increased more than seasonal average over debits in May this year. At the moment the most serious obstacle in the district to a continuation o f present conditions for several months appears to be the position in which the tobacco planters find themselves. This year the tobacco growers planted a very large acreage, and forecasts of probable production now indicate a yield o f 971,275,000 pounds in the Fifth district, an increase of 30 per cent over the 1938 crop and 39 per cent above the 10-year average yield. W ith ade quate reserve stocks o f tobacco already on hand, this year’s record yield is expected to result in materially lower prices, and this in turn may adversely affect fall and winter trade in tobacco growing areas. MONTHLY REVIEW 2 district cities in June 1939 rose 10 per cent above debits in June 1938, the largest increase reported for any month in two years. Every city except Huntington, W . Va., showed higher figures for the 1939 month. June figures also exceeded those for May 1939 by 11 per cent, all cities gaining except Columbia and Greenville, S. C. June debits July 15 1938 nearly always exceed those of May, due to the influence $ 692 o f semi-annual payments on July 1, but the increase this 23 0 year was the second largest for any June in eight years. R eserve B a n k S t a t e m e n t : Certain important items on the statement of the Federal Reserve Bank o f Rich mond on July 15, 1939, compare as follows with the corre sponding figures a month and a year earlier: ITEMS Discounts held' ............................................ Open market paper .................................. Foreign itoans on gold .............................. Industrial advances .................................. Government securities ........................... Total earning assets ............................ Circulation of Fed. Res. notes ............... Members’ reserve deposits ..................... Cash reserves .............................................. Reserve ratio .............................................. 000 July 15 1939 $ 525 24 87 1,153 140,527 $142,316 196,706 243,945 364,133 72.16 omitted June 15 1939 ? 365 24 0 1,490 127,224 $129,429 189,571 206,975 319,872 72.06 1,169 134,227 $135,785 193,540 249,513 380,127 74.39 S t a t e m e n t o f 41 R e p o r t i n g M e m b e r B a n k s : Figures on the composite statement o f 41 member banks in 12 Fifth district cities show no significant changes during the past month, but all items rose during the past year. The advances in loans and discounts, cash in vaults and time deposits were small, but material increases occurred in investments, reserve balances and demand deposits. ITEMS Loans & discounts .................................... Investments in securities ....................... Reserve bal. with F. R. bank ............... Cash in vaults ............................................ Demand deposits ........................................ Time deposits .............................................. Money borrowed ........................................ M u t u a l S a v in g s B a n k 000 omitted July 12 June 14 1939 1939 $241,625 $240,659 427,173 436,509 156,071 158,683 21,631 20,178 488,948 485,870 200,133 202,106 0 0 D e p o s it s : D e p o s it s in July 13 1938 $229,016 379,721 131,787 19,211 433,280 198,459 0 10 m u tu a l sa v in g s b a n k s in B a ltim o r e ro se s lig h tly d u rin g Ju n e, $220,303,545, c o m 31, 1939, an d $219,222,- a n d at the en d o f the m o n th to ta le d $220,130,334 Ju n e 30, 1938. p ared w ith 718 on on M a y L a s t y e a r v a ca tio n w ith d ra w a ls ca u sed m u tu a l sa v in g s b a n k d ep o sits to d eclin e in Ju n e. e b it s to I n d i v i d u a l A c c o u n t s : Debits to individual, firm and corporation accounts in the banks of 24 Fifth D c it ie s June 1939 000 omitted Juno May 1938 1939 Maryland $ 323,042 $ 334,683 $ 368,367 Baltimore ........... 8,316 7,842 8,837 Cumberland .... 8,309 8,073 9,223 Hagerstown ......... Dist. of Columbia 278,184 253,197 294,531 Washington ......... Virginia 6,962 7,525 6,881 Danville ............... 13,309 13,823 12,905 Lynchburg ......... 7,941 8,974 9,794 Newport News .. 45,409 46,246 50,629 Norfolk ............... 4,437 4,069 4,671 Portsmouth ......... 136,609 148,304 133,875 Richmond ........... 25,076 23,749 26,784 Roanoke ............... West Virginia 43,856 42,273 46,403 Charleston ........... 15,761 14,951 18,129 Huntington ......... 9,756 9,739 Parkersburg . . . . North Carolina 10,335 12,106 11,905 Asheville ............. 50,884 60,558 58,051 Chartotte ............. 26,466 26,837 32,033 Durham ............... 19,612 18,769 16,111 Greensboro ......... 40,438 37,352 37,664 Raleigh ............... 11,386 10,560 Wilmington .... 10,171 36,234 Winston-Salem 39,689 34,655 South Carolina 17,987 16,984 16,515 Charleston ........... 25,322 Columbia ............. 31,521 22,518 17,718 17,828 Greenville ........... 14,989 Spartanburg . . . . 9,238 9,066 7,850 $1,290,739 $1,162,879 District Totals .. $1,177,683 N ote: Parkersburg, W . Va., not included in Totals. % of Change Year Month + 14 + 13 + 14 + 10 + 6 + 11 + 16 + 6 + 9 + 7 + 9 + 9 + 5 + 11 + 7 + + + + + + + 8 4 23 11 15 9 13 E m ploym ent: N o important changes in employment occurred in the Fifth district in June or the first half of July, the number o f employees remaining at about the same level as in the last half o f May after the trouble in the bituminous coal fields was settled. The following figures, compiled for the most part by the Bureau of Labor Statistics, show the trends of employment and payrolls in the Fifth district from May to Jun e: STATES ................. Dist. of Columbia .............................. ................. ................. West Virginia ...................................... ................. North Carolina .................................. ................. South Carolina .................................... ................. C o m m e r c ia l F a il u r e s : Insolvencies in the Fifth dis trict in June were fewer in number and lower in liabilities involved than in either M ay 1939 or June 1938. In the first half o f 1939, however, failures exceeded those o f 1938 by 4 per cent, although liabilities this year were 23 per cent lower. Bankruptcy figures as reported by Dun & Bradstreet are as fo llo w s: PERIODS June 1939 ................. ........... May 1939 ................... ........... June 1938 ................. ........... Number of District 36 48 58 6 Months, 1939 ......... ........... 6 Months, 1938 ......... ........... 331 318 + 6 — 13 + 2 + 4 + 19 + 4 + 8 4- 8 + 10 + + + + + + + 17 19 21 22 7 12 15 + 6 — 20 — 1 + 2 + 11 + + + + + 9 12 18 18 10 Failures U. S. 952 1,122 1,073 Total Liabilities District U . S. $ 714,000 $ 11,609,000 779,000 14,757,000 840,000 15,918,000 6,563 7,061 $3,665,000 4,734,000 $ 93,683,000 138,972,000 R e g is t r a t io n s of N e w A u t o m o b il e s : Registration figures on new passenger cars are not quite complete for June, some figures not clearing in W est Virginia due to extra work incident to closing o f the fiscal year. Incom plete registration figures show a continuation of the gains made in earlier months this year over corresponding months in 1938, with South Carolina leading all Fifth district states in improvement. The following registration figures for new cars were furnished by R. L. Polk & Co., o f Detroit: Registration of New Passenger Cars STATES + 10 + 5 0 Percentage change from May 1939 to June 1939 in number in amount on payroll of payroll + 4.8 + 1.6 +0.4 + 0.6 + 5.8 +3.5 + 2 5 .6 + 66.2 — 1.4 — 1.4 + 0.3 0.0 June June 6 Months 6 Months % 1939 1938 1939 Change 1938 Maryland . . . . 3,523 2,339 + 51 20,646 13,585 Dist. of Col. . 2,520 1,643 + 53 14,075 9,299 Virginia ......... 4,321 2,851 + 52 22,056 16,466 West Va........... 2,116 1,968* — 7 10,546* 8,791 No. Carolina . 3,591 2,297 + 56 22,419 14,680 So. Carolina . 2,254 1,197 + 88 12,911 7,264 District .~.. . 18,177 12,443 102,653 + 46 70,085 * West Virginia figures for June 1939 not complete. % Change + 52 + 51 + 34 + 20 + 53 + 78 + 46 C o n s t r u c t i o n : Construction work continues at the high est level in many years in the Fifth Reserve district, the value o f building permits issued in 31 cities in June being the second highest for any month since April 1930 and contracts actually awarded in the district last month total 3 MONTHLY REVIEW ing more than in any other month since July 1929. Per mits issued in 31 cities in June totaled $11,843,892, an in crease of 70 per cent over $6,985,851 for permits issued in June 1938, and permits issued in the first 6 months of this year amounting to $61,336,958 show a gain o f 48 per cent over permits totaling $41,353,397 in the first half o f 1938. The leading cities in June permits were W ashing ton with $3,756,685, Richmond $2,030,596, Columbia $1,165,875, Baltimore $1,137,228, and Charleston, W . Va., $889,325. Contracts awarded for all types of construc tion work in the Fifth district in June totaled $46,154,000, an increase o f 54 per cent over $29,981,000 awarded in June last year. Total contract awards in the first 6 months o f 1939 amounted to $203,393,000, a gain of 51 per cent over awards totaling $134,496,000 in the first 6 months o f 1938, and the highest figure for the first half o f any year since 1930. Figures collected by the F. W . Dodge Corporation by states for June 1939 and 1938 on construc tion contracts actually awarded in the Fifth Reserve dis trict are as follow 's: STATES June 1939 June 1938 % Change Maryland’ ................................ $ 9,556,000 $ 5,879,000 + 63 18,858,000 8,016,000 +135 Dist. of Col*. ........................... Virginia .................................. 6,632,000 6,929,000 — 4 West Virginia ..................... 3,488,000* 2,201,000* + 58 North C arolina....................... 6,303,000 5,323,000 + 18 South Carolina ..................... ..................... 1,811,000_______1,948,000_______ — 7 Fifth District ................... ................. $46,648,000 $30,296,000_______ + 54 * Includes some W . Va. contracts outside Fifth district. C o a l : Bituminous coal mined in the United States in June 1939 totaled 28,506,000 net tons, with a daily average o f 1,096,000 tons, against June 1938 production of 22,507,000 tons and a daily average o f 866,000 tons. Total production this calendar year through June of 161,863,000 tons exceeded 150,634,000 tons mined in the first half of 1938. Production o f coal in June was relatively high, due to the necessity o f replenishing stocks which were drawn upon in April and May while miners were idle. On April 1, when the suspension began, reserves o f bi tuminous coal in the hands o f commercial consumers amounted to 40,505,000 tons, but by May 15, when opera tions were resumed, stocks had dropped to the lowest point in many years, and rose to only 25,280,000 tons by June 1. Shipments o f coal through Hampton Roads ports this year to July 8 totaled 9,268,879 tons, against 8,577,113 tons shipped to the same date in 1938. Cotton mill activity was slightly low er in June than in May and declined somewhat further in the first half of July, but continued materially above the level o f operations in 1938. Prices o f textile products advanced between June 1 and mid-July, and mill margins widened slightly. Manufacturers are reported to have formed a voluntary plan to reduce print cloth output by 25 per cent during July, August and September, and this is expected to reduce total mill weavings o f cotton by about 10 per cent during the summer. Consumption of cotton by states in the Fifth district in June 1939, May 1939, and June 1938, in bales, is shown below : C otton T e x t il e s : • MONTHS No. CarolinaSo. June 1939 ............................... 147,640 May 1939 ................................ 159,984 June 1938 ............................. 115,152 Carolina 117,442 120,746 93,927 6 Months, 1939 6 Months, 1938 705,040 536,533 ................... ................... 923,000 701,295 Virginia District 9,285 274,367 11,556 292,286 9,457 218,536 67,549 63,818 1,695,589 1,301,646 R a y o n : Sh ipm ents o f ra y on yarn to d om estic con su m ers in Ju n e totaled 32,900,000 p ou n d s as com p a re d w ith 25,900.000 p ou n d s in M a y 1939 and 18,100,000 pou n d s in Ju n e 1938. Rayon Organon fo r J u ly says that the h igh Ju n e shipm ents reflected a d esire o f fa b rica to rs to assure th em selves o f adequate y a rn su pplies p rep a ra tory t o the o p en in g o f the h eav y seasonal p r o d u c tio n sch edules on fall g o o d s . S h ipm en ts o f y arn e x ce e d e d p r o d u c tio n in June, and a substantial d eclin e o c cu rr e d in p r o d u c e r s ’ yarn stocks fr o m 41,500,000 p ou n d s at the end o f M a y to 32,800.000 p ou n d s on J u n e 30. O n Ju n e 30, 1938, stock s totaled 67,000,000 p ou n d s. In the first 6 m on th s o f 1939 shipm ents o f 161,100,000 p ou n d s o f ra y on yarn set a n ew re co r d and is 62 p er cen t a b ov e 99,400,000 p ou n d s shipped in the first h a lf o f 1938. A fa c to r esp ecia lly fa v o r in g ra y on has been in creased business obtain ed becau se o f the con tin u in g h igh level o f raw silk p rices, and an oth er fa c to r is a steady rise in the use o f ra y on in com b in a tion w ith cotton and w o o l. C o t t o n : S p o t c o tto n p rices, w h ich had ad va n ced sh arply in M a y and the first h a lf o f Ju n e, flu ctuated con sid era b ly in late Ju n e and early Ju ly. F r o m an a v era g e o f 9.47 cents per p ou n d o n J u n e 16 fo r m id d lin g g ra d e u pland cotton on 10 S ou th ern sp ot m arkets, the p rice rose to 9.58 cents on Ju n e 23, d ro p p e d to 9.33 cents on Ju n e 30, rose again to 9.57 cen ts o n J u ly 7, an d d r o p p e d to 9.41 cents on J u ly 14, the latest available figu re. T h e se q u ota tion s w ere h igh en ou g h to cau se som e w ith d raw al o f cotton fr o m G ov ern m en t loan stock s. O n J u ly 8, the D ep a rtm en t o f A g ricu ltu r e rep orted the 1939 c o tto n acreag e at 24,943,000 acres, 99.7 per cent o f the 1938 p la n tin g o f 25,018,000 acres, fr o m w h ich a yield o f 11,944,340 ru n n in g bales w as g in n ed . In the F ift h district, S ou th C a rolin a acreag e is the sam e this y ear as last, bu t N o r th C a rolin a a creag e decrea sed 11 p e r cen t this year an d V ir g in ia acreag e declin ed 15 per cent. N o official data on the co n d itio n o f this y e a r’ s c r o p w ill be available until A u g u s t 8. Cotton Consumed and On Hand (Bales) June 1939 Fifth district states: 274,367 Cotton consumed ..................... Cotton growing states: Cotton consumed ....................... 489,764 Cotton on hand June 30 in Consuming establishments . . 826,065 Storage & compresses ........... 11,905,819 United States: Cotton consumed ....................... 578,448 Cotton on hand June 30 in Consuming establishments . . 1,021,236 Storage & compresses ........... 11,943,683 Exports of cotton ............................ 113,634 Spindles active, U. S....................... 21,788,286 June 1938 218,536 375,849 Aug. 1 to June 30 This Year Last Year 3,044,208 2,596,936 5,367,266 4,499,480 1,162,375 9,642,206 443,043 .. .. 6,333,841 5,299,525 1,411,988 9,725,704 175,878 3,220,309 21,142,408 .. .. 5,402,700 T o bacco M a n u f a c t u r i n g : A ll fo r m s o f to b a cco m a n u fa ctu rin g e x ce p t c h e w in g a n d sm ok in g to b a c co in creased in J u n e 1939 ov e r J u n e 1938. F ig u res f o r the tw o m on th s, released b y the B u rea u o f In ternal R e v e n u e o n J u ly 22, are as f o llo w s : June 1939 Smoking & Chewing Tobacco, Pounds ............. Cigarettes, Number ............... Cigars, Number ..................... Snuff, Pounds ......................... 26,823,793 16,594,511,013 486,721,353 3,282,977 June 1938 % Change 27,060,826 14,716,624,943 477,443,494 3,118,688 — 1 +13 + 2 + 5 4 R MONTHLY REVIEW e t a il T rade in D S epartm ent tores CROP FORECASTS : Stocks Ratio June Net Sales Net Sales collections June 1939 Jan. 1 to datie June 30, 1939 to accounts comp, with compared! with compared with June same period June 30 May 31 outstanding 1939 June 1 1938 last year 1938 Richmond (3) . . . Baltimore (8) . . . Washington (6) . Other Cities (13) District (30) + 10.0 — 1.2 + 2.0 + 4.9 + 2.1 + + + + + 2.8 0.7 4.4 3.9 2.9 + — + + + 3.5 0.1 3.8 7.1 2.7 — — — — — 6.0 4.9 5.4 6.0 5.3 32.7 32.9 29.2 2.8.2 30.7 The following figures show forecasts o f production based on July 1 conditions, compared with yields in 1938 and in the 10-year period 1928-1937, and percentage changes in acreage this year over or under 1938: Wheat (Bushels) % Change Acreage Maryland R e t a il F + 3.2 + 1.8 + 4.2 + 11.8 © + 10.3 _L Same stores by States, with 27 stores added: Virginia (13) . . West Va. (10) . . No. Carolina (8) . So. Carolina ( 12) — 0.8 + 19.4 u r n it u r e S ales % STATES ................. West Virginia ........ North Carolina South Carolina . . . , — 10 — 10 — 10 + 14 Maryl«and + Yield 1939 Yield 1928-1937 Yield 1938 7,334,000 7,672,000 2,030,000 4,972,000 2,013,000 9,420,000 8,526,000 2,340,000 5,440,000 1,771,000 8,419,000 8,764,000 1,983,000 4,496,000 1,054,000 18,537,000 34,775,000 12,640,000 46,398,000 26,767,000 15,617,000 32,225,000 12,384,000 41,355,000 21,335,000 1,312,000 1,978,000 1,806,000 5,566,000 10,648,000 1,364,000 2,287,000 2,2,18,000 3,906,000 8,488,000 543,000 1,138,000 802,000 863,000 431,000 464,000 916,000 645,000 654,000 338,000 2,990,000 10,349,000 2,720,000 8,690,000 2,784,000 3,257,000 12,352,000 3,109,000 8,028,000 2,476,000 1,040,000 3,570,000 8,748,000 6,468,000 1,156,000 4,285,000 7,896,000 4,965,000 29,250,000 98,906,000 2,208,000 516,850,000 98,800,000 25,217,000 98,075,000 3,400,000 493,927,000 79,624,000 Corn (Bushels) ................. West Virginia ........ North Carolina . South Carolina . . . 1 0 1 — 1 — 5 + 17,710,000 34,080,000 13,496,000 47,151,000 24,556,000 Oats (Bushels) : Change in Sates, June and 6 Months 1939 Compared with Compared with >Months 1938 June 1938 Maryland, 10 stores ........................... Dist. of Col., 7 stores ....................... Virginia, 10 stores ........................... North Carolina, 4 stores ................ South Carolina, 6 stores ................. + 7 — 17 + 26 + 13 + 51 + 1 + 2 + o + 10 + 27 District, 37 stores ....................... Individual Cities: Baltimore, 10 stores ..................... Columbia, 3 stores ....................... .. Richmond, 5 stores ..................... . Washington, 7 stores ................. + 4 + + 7 - - 4 5 + 1 — 6 + 20 -1 7 + + Maryland ................ West Virginia North Carolina South Carolina . .. + 10 — 15 + 4 + 7 1,161,000 1,919,000 1,387,000 5,786,000 11,750,000 Haj7 (Tons) Maryland ................. Virginia ........... West Virginia ........ North Carolina . . , South Carolina 5 + + + — + 1 1 1 1 1 491,000 904,000 654,000 810,000 419,000 Irish Potatoes (Bushels) Maryland ................ West Virginia ........ North Carolina . . . . South Carolina 3 2 — 4 0 — 3 + 10 + 17 2,500,000 7,110,000 2,325,000 8,700,000 3,108,000 Sweet Potatoes (Bushels) W h olesale T rade, l in e s Auto Supplies (7) . . . . . Shoes (5) ......................... Drugs (9) ......................... Dry Goods (9) ............... Electrical Goods ( 18) . . Groceries (68) ................. Hardware (20) ............... Indus. Supplies (10) . . . Paper & Products (8) . . Tobacco & Products (10) Miscellaneous (34) ......... Total & Average (198) 198 F ir m s Net Sales June 1939 compared with May June 1939 1938 + + + + + + + + + + + + 21 17 4 22 56 5 26 29 13 8 4 14 + 7 — 34 — 7 — 3 + 15 + 2 — 5 + 22 — 8 + 3 + 2 — 1 Maryland : Ratio June Stocks collections June 30, 1939 compared with to accounts June 30 May 31 outstanding 1938 1939 June 1 0 + 48 + 5 — 18 + 27 + 2 — 1 — 7 — 12 — 12 + + 2 5 — 8 + 15 0 — 7 0 — 3 — 1 — 8 — 1 + + 2 1 0 69 58 92 41 78 87 46 57 64 90 75 67 ................. North Carolina South Carolina + 0 0 0 5 1,360,000 3,910,000 8,748,000 6,210,000 Tobacco (Pounds) Maryland ................. West Virginia North Carolina South Carolina ... + 1 + 16 — 6 + 21 + 20 26,530,000 119,775,000 2,025,000 701,070,000 121,875,000 Peanut Condition, July 1 North Carolina South Carolina + + + 5 5 6 79 79 78 75 75 69 80 76 68 84 92 93 92 80 76 78 73 75 67 Pastune Condition, July 1 Maryland ............... West Virginia ........ North Carolina South Carolina (Compiled July 21, 1939) 77 72 76 79 68 MONTHLY REVIEW, July 31, 1939 FEDERAL RESERVE BANK OF RICHMOND SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) INDUSTRIAL PRODUCTION Output o f factories and mines increased in June reflecting chiefly sharp expansion at steel m ills and bituminous coal mines. In the first h a lf o f July industrial activity w as generally maintained. PR O D U C TIO N Index of physical volume of production, ad justed for seasonal variation, 1923-1025 average100. By months, January 1934 to June 1939. FACTORY EMPLOYMENT The B oard’s seasonally adjusted index o f industrial production advanced to 97 in June as com pared w ith 92 in A p ril and M ay. A t steel mills output increased fr o m a rate o f 45 per cent o f cap a city in the third week o f M ay to 54 at the end o f June and to 56 in the third w eek o f July. Autom obile production, which had declined in M ay, showed some increase in June when a decline is custom ary. In the first three w eeks o f Ju ly autom obile output w as at a lower rate, reflecting in part curtailm ent p reparatory to the change-over to new m odels. Plate glass produ ction rose considerably in June. Output o f lumber, which usually shows some increase over M ay, w as unchanged. A m ong nondurable goods industries w oolen m ills showed increased activity in June, and activity at cotton and silk m ills w as m aintained though declines are usual at this season. M eat-packing w as low er than in M ay. M ineral production increased considerably in June reflecting a sharp rise in output at bituminous coal m ines w hich had been closed during A p ril and the first h a lf o f M ay. Production o f anthracite declined fro m M ay to June and there w as some reduction in output o f petroleum . V alue o f construction contracts aw arded declined in June, according to F. W . D odge Corporation figures, reflecting chiefly a greater than seasonal decrease in private residential building. Contracts awarded fo r public residen tial construction, principally fo r United States H ousing A u th ority projects, w ere maintained at the advanced level reached in M ay, w hile public construction other than residential showed a small decline. EM PLOYM ENT Index of number employed, adjusted for sea sonal variation, 1923-1925 average~100. By months, January 1934 to June 1939. FR EIG H T-C A R LOADINGS F a ctory employm ent and pay rolls increased som ewhat from the middle o f M ay to the middle o f June according to reports fr o m a number o f im portant industrial States. There w as a sharp expansion in em ploym ent at bitum inous coal m ines follow in g the reopen in g o f the m ines in the m iddle o f M ay, and the number employed on the railroads increased more than seasonally from M ay to June. D IST R IB U T IO N Departm ent store sales showed a less than seasonal decline from M ay to June and the B oard’s adjusted index advanced from 85 to 86, w hich com pares w ith a level o f 88 during the first fo u r months o f the year. Sales at variety stores and by m ail order houses showed little change. F reigh t-car loadings increased m ore than seasonally in June reflecting a sharp rise in shipments o f coal and sm aller increases in shipments o f grain and miscellaneous freigh t. C O M M O D ITY P R IC E S Prices o f hides, silk, steel scrap, copper, and some other industrial m aterials advanced from the middle o f June to the third week o f July, w hile some fa rm products, particu larly grains, declined. P rices o f most other com m odities showed little change. A G R IC U L T U R E Index of total loadings of revenue freight, ad justed for seasonal variation, 1923-1925 averages 100. By months, January 1034 to June 1939. MEMBER BANKS IN 101 LEADING CITIES A total wheat crop o f 716,655,000 bushels w as indicated on the basis o f Ju ly 1 conditions, according to the D epartm ent o f A gricu lture. This would be much sm aller than last year’s large crop and som ewhat below the 1928-1937 average. Cotton acreage in cultivation w as estimated to be about the same as last year but one-third less than the 10-year average. A record tobacco crop is indicated. M ost other m a jor crops are expected to approxim ate last y ea r’s harvests and are generally larger than average. B A N K C R E D IT T otal loans and investments o f member banks in 101 leading cities continued to increase during the fo u r weeks ending Ju ly 12, reflecting largely purchases o f United States Government securities. Com m ercial loans, w hich had shown little change in recent months, increased slightly. D eposits and reserves at these banks rose to new high levels in July, reflecting continued gold im ports and T reasu ry disbursements from its balances at the Reserve banks. M ON EY R A T E S Wednesday figures for reporting member banks in 101 leading cities, Sept. 5, 1934, to July 12, 1939. Commercial loans, which include industrial* anil agricultural loans, represent prior to May 19, 1937, so-called “ Other Loans” as then reported. P rices o f United States Governm ent securities, w hich had declined som e w hat during June, recovered part o f the loss in July. The longest-term T reasu ry bond outstanding showed a yield o f 2.31 per cent on July 20, ag com pared w ith a record low o f 2.26 on June 5. Open-m arket m oney rates showed little change.
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