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MONTHLY REVIEW o f Financial and Business Conditions F ifth FEDERAL Reserve D is tr ic t June 30, 1941 Federal Reserve Bank, Richmond, Va. Summary of May Business Conditions R A D E and industry continued to rise in May and early June in the Fifth Federal Reserve district, and all figures were materially higher than those for 1940. The volume of business is based primarily on the defense program, which is reaching into practically every trade and industry either through direct Government orders or in the effects of increased purchasing power o f consumers as a result o f added employment, longer hours o f work, and higher payrolls. T The industries working on Government defense orders in large volume are shipyards, airplane plants, steel mills, cotton textile mills, lumber mills and branches o f the munitions industry, together with a host o f smaller plants making innumerable items required by the A rm y or Navy. Further, the Government is financing, either di rectly or indirectly, a great deal o f housing and other construction in the district. The wages paid in all these activities are affecting distribution of all kinds o f con sumer goods, as reflected in department store sales, furni ture sales, automobile sales, and speculative building of homes for sale to people in the lower and medium income groups. In distribution to consumers, retail trade in May in department stores rose 22 per cent above sales in May 1940, and retail furniture sales were 34 per cent higher last month than a year ago. Sales o f new passenger automobiles, which had set a record for a single month in April, advanced further in May to a new high, and sales o f used cars were also exceptionally brisk. A large number o f modest homes in the four to five thousand dollar class are being built and sold on long time pay ments in or near Fifth district cities, especially those in which defense work is being done. Industrially the district is operating at or near ca pacity, and additional facilities are under construction at a number o f points. Many textile mills are sold up through this year, and shipyards and airplane plants have orders assuring full time activities for several years. Bi tuminous coal mines, after the April shut-down, produced 24 per cent more coal in May 1941 than in May last year, and rayon yarn shipments to domestic consumers set a new record in M ay for a single month. Building permits issued in Fifth district cities last month were 16 per cent above May 1940 permits in valuation, and construction contracts awarded rose 154 per cent over contracts last year. Agricultural prospects in the Fifth district struck the only unfavorable note last month. Lack o f rain reduced estimates o f probable yield for many crops, and delayed planting o f others. Pastures throughout the district are in extremely poor condition, and many farmers had to feed stock in May. However, rains fell in nearly all sections o f the district in June, and it is too early in the season to judge the extent o f the damage done by the drought in April and May. BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT May 1941 April 1941 May 1940 Month Debits to individual accounts (25 cities).. Sales, 79 department stores, 5th district.... Sales, 41 furniture stores, 5th district....... Sales, 190 wholesale firms, 5th district..... Registrations, new autos, 5th district....... $1,717,276,000 $ 16,590,561 1,630,641 $ $ 13,420,000 38,966 $1,628,471,000 $ 16,075,814 1,501,474 $ $ 12,688,000 34,958 $1,361,494,000 $ 13,601,512 1,212,407 $ $ 10,323,000 23,623 4" 5 + 3 + 9 + 6 + 65 + + + + + Number of business failures, 5th district.. Liabilities in failures, 5th district............... Value o f building permits, 29 cities............. Value o f contracts awarded, 5th district.... Cotton consumption, 5th district (Bales).. 37 281,000 $ $ 14,579,982 $ 100,005,000 413,387 $ $ $ 51 604,000 12,565,219 39,339,000 314,276 — 12 0 -j- 11 +108 — 0 — 27 — 53 + 16 +154 + 32 Cotton price, cents per lb., end of month.. Print cloths, 39 in., 80x80s, end of month.. Rayon yarn shipments, U. S. (Pounds)..... Rayon yarn stocks, U. S. (Pounds)........... Bituminous coal mined, U. S. (T on s)......... 12.89 10.50 39,900,000 5,900,000 43,400,000 10.11 6.375 32,200,000 12,500,000 34,896,000 + 13 + 14 + 3 — 20 +626 + + + — + 42 281,000 13,105,339 48,098,000 413,856 11.41 9.25 38,700,000 7,400,000 5,975,000 $ $ $ Year 26 22 34 30 44 27 65 24 53 24 MONTHLY REVIEW 2 BA N K IN G STATISTICS RESERVE BAN K STATEMENT ITEMS Fifth District 000 omitted ITEMS June 15 May 15 1941 1941 Discounts held .............................................. Industrial advances ................................... Government securities .............................. Total earning assets .............................. Circulation of Fed. Res. notes............... Members’ reserve deposits......................... Cash reserves .............................................. Reserve ratio .............................................. $ 108 852 121,486 122,446 309,206 394,524 678,548 84.04 April 1941 ...................... May 1940 ....................... June 15 1940 $ 60 844 121,486 122,390 299,519 435,693 683,999 84.88 110 896 126,217 127,223 224,457 298,881 432,154 77.62 $148,400 161,278 458,814 269,162 27,929 696,815 207,584 0 $148,900 161,709 408,353 302,684 26,893 686,514 207,496 0 $121,200 149,448 429,072 200,885 23,241 569,955 201,662 0 M UTUAL SAVINGS BANK DEPOSITS 10 Baltimore Banks May 31 1941 Total deposits $224,836,673 Apr. 30 1941 May 31 1940 $225,433,883 $223,616,485 DEBITS TO INDIVIDU AL ACCOUNTS Fifth District 000 May 1941 omitted Apr. 1941 May 1940 % $ 335,672 $ 292,486 + 493,412 9,352 11,056 476,472 9,486 11,245 Durham ............... Greensboro ........... Raleigh ................. Wilmington ......... Winston-Salem . . 16,774 96,343 33,975 27,309 51,214 17,425 47,254 South Carolina Charleston ........... Columbia ............. Greenville ............. Spartanburg ----Virginia Danville ............... Lynchburg ........... Newport News . . Norfolk ................. Portsmouth ......... Richmond ............. Roanoke ............... Dist. of Col. Washington ......... $ 358,663 Maryland Baltimore ............. Cumberland ......... Hagerstown ......... North Carolina Asheville ............. West Virginia Charleston ........... Parkersburg District Totals . . 207 247 $ 281,000 281,000 604,000 $10,065,000 13,827,000 13,068,000 5,732 6,005 2,381,000 2,615,000 62,707,000 69,747,000 E M PLO YM E N T CONTIN UES HIGH Employment in the Fifth Reserve district has been at a high level for several months, and changes from month to month were relatively small. The industries o f the district are as a rule operating at plant capacity, and plants which might add an additional shift are unable to do so because skilled workers are not available. U n employment at present is chiefly confined to the unskilled and to white collar workers. In May the bituminous coal mines in W est Virginia and Virginia returned to work after a month’s idleness, but this was the only im portant change from April to May in the number of workers gainfully employed in the Fifth district. Labor disputes have been few in the district, and all were un important except the dispute in bituminous coal fields during April. A recent increase in the basic hourly wage rate set by the Government for textile workers will raise incomes o f thousands of the lower paid men and women in that industry, and a number o f other industries have also established higher wage scales. The following figures, compiled for the most part by the Bureau o f Labor Statistics, reflect the trends of employment and payrolls in the Fifth district from April to M ay: of Change Month Year 7 + 23 390,437 8,625 8,946 + 4 — 1 — 2 + 26 + 8 +24 16,036 92,486 30,553 25,009 51,709 16,667 42,136 12,711 63,876 29,277 20,847 39,966 11,231 40,563 + 5 + 4 + 11 + 9 — 1 + 5 + 12 + + + + + + + 30,494 42,753 28,629 16,859 26,721 38,503 25,327 17,134 20,972 34,175 20,381 11,444 + 14 + 11 + 13 — 2 + 45 +25 -j[-40 h47 9,838 16,959 16,466 75,720 6,833 181,474 36,044 8,827 16,513 15,738 71,205 6,679 173,290 34,121 8,044 14,438 12,204 52,924 4,665 154,112 28,933 + 11 + 3 + 5 + 6 + 2 + 5 +• 6 + 22 + 17 + 35 + 43 +46 + 18 + 25 60,093 19,732 12,605 $1,717,276 55,583 19,814 11,545 $1,628,471 52,062 17,696 10,479 $1,361,494 + — + + [-15 -12 -20 + 26 8 0 9 5 32 51 16 31 28 55 16 C O M M E R C IA L FAILU RES D ECLIN E Business failures last month in the Fifth district were lower than in May 1940 in both number and liabilities in volved, according to figures compiled by Dun & Bradstreet. Statistics for several periods were as follow s: 5 Months 1941 ............. 5 Months, 1940 ............. 1,119 1,149 1,238 $ SELECTED ITEMS— 41 REPORTING MEMBER BAN KS Fifth District 000 omitted ITEMS June 11 May 14 June 12 1941 1941 1940 Loans to business & agriculture............. All other loans .............................. ........... Investments in securities ......................... Reserve bal. with F. R. bank ............... Cash in vaults ...................................... ••. Demand deposits ........................................ Time deposits .............................................. Money borrowed .......................................... Total Liabilities District U. S. Number of Failures District U. S. PERIODS Percentage change from April 1941 to May 1941 In number In amount on payroll of payroll STATES + 2.8 4 - 0.6 Maryland ................. Dist. of Columbia Virginia ................... West Virginia North Carolina . . , South Carolina . .. District Average , A U TO M O BILE 4- 4.8 -j-54.9 + 0.4 — 0.3 + 7.3 SALES A T + + 7.3 0.8 +11.6 + 81.0 + 4.2 + 1.1 + 18.4 PEAK Sales o f new passenger automobiles continue at or near record levels, stimulated by generally increased pur chasing power and a belief that 1942 models will be substantially higher. It is also possible that output of next year’s models may have to be so reduced as to make future deliveries uncertain. Used cars have accumulated on dealers’ lots as a result o f the new car sales, but business in used cars has also been exceptionally good and the stocks built up are not burdensome. Dealers’ lots hold many late model cars in excellent condition, and when new cars advance in price or become scarce these high grade used cars will sell readily. Tire dealers have been pushing new tires recently, and report that many automobile owners are equipping their cars all around with new tires at present prices in anticipation o f higher prices and restrictions in rubber supplies avail able for passenger car tires. The following registration figures for new passenger cars were furnished by R . L. Polk & Co., o f D etroit: MONTHLY REVIEW REGISTRATION OF N E W PASSENGER CARS— NUMBER May 1941 STATES Maryland ........... Dist. of Col.......... Virginia ............. West Virginia . . No. Carolina . . . So. Carolina . . . District ........... 7,475 4,237 9,337 4,524 8,708 4,685 38,9'66 May 1940 Change 5,048 2,982 4,996 3,255 4,727 2,615 23,623 + 48 + 42 + 87 + 39 + 84 + .7 9 + 65 % BU ILDIN G PERM ITS A N D 5 Months 5 Months 1941 1940 30,381 16,650 34,423 16,152 34,742 19,219 151,567 % Change 21,829 12,108 23,098 12,919 22,749 12,876 105,579 +39 +38 +49 +25 +53 +49 +44 CO N TR A C TS RISE Permits issued in 29th Fifth district cities in May 1941 totaling $14,579,982 were 11 per cent above permits total ing $13,105,339 in April this year and 16 per cent above $12,565,219 in May last year. Washington led in valu ation last month with $7,199,205, followed by Baltimore with $2,394,234, Charlotte with $736,310, Richmond with $688,822, and Roanoke with $373,859. However, only 10 of the 29 reporting cities showed higher figures for May 1941 than for M ay 1940. Contracts awarded for construction work are a much better indicator o f the volume o f construction in the dis trict than building permits, especially at this time when a large amount o f emergency work is being done with G ov ernment funds. Most o f these projects are outside the corporate limits of the larger cities, and therefore do not show in building permits. Swelled by defense contracts, awards made in M ay 1941 totaled $100,005,000 in the Fifth district, increases o f 108 and 154 per cent, respec tively, over contracts totaling $48,098,000 in April 1941 and $39,339,000 in May 1940. Figures on construction contracts awarded have been compiled on a monthly basis since 1921, and last month’s figure was the second high est in the Fifth district during that period of 20 years, the December 1940 figure o f $101,104,000 holding the record. Figures on awards by states for April 1941, which were not available when the May 31 R eview went to press, were reported by the F. W . Dodge Corporation as fo l lows : CONSTRUCTION CONTRACTS AW ARDED STATES April 1941 April 1940 % Change Maryland ................................ $10,391,000 $ 7,924,000 +31 Dist. of Col............................. 3,895,000 3,744,000 + 4 Virginia ................................ 14,598,000 8,167,000 +79 West Virginia ..................... 3,169,000 2,647,000 +20 North Carolina..................... 9,125,000 7,350,000 +24 South C arolina..................... ................. 6,695,000_________ 1,793,000 +273 Fifth District ................. $47,873,000* $31,625,000________ + 5 1 ♦This figure varies slightly from the revised figure on Page 1. C O A L PRO D U CTIO N A B O V E SEASON AL L E V E L Settlement o f the labor dispute in bituminous coal fields at the end of April enabled the mines to reopen in May, and production during that month totaled 43,400,000 net tons, an increase of 24 per cent over 34,896,000 tons mined in May last year. The high tonnage figure last month was partly due to activity on the part of industrial coal consumers this year, but also to the necessity o f re building reserve stocks which were depleted during the April shut-down. But in spite o f the low output in April, total production of 196,745,000 net tons o f bitu minous coal to June 7 this calendar year exceeds 195,863,000 tons mined to the same date in 1940. Hampton Roads ports loaded 9,296,715 tons between January 1 and 3 June 7, 1941, a decrease o f 13 per cent under loadings o f 10,664,327 tons in the corresponding period last year. In the Fifth district, bituminous coal mined in May 1941, April 1941 and May 1940, was as follow s: SOFT COAL PRODUCTION IN TONS REGIONS West Virginia . . . Virginia ............... Maryland ............... 5th District . . United States % in District May 1941 Apr. 1941 May 1940 13,575,000 1,592,000 138,000 15,304,000 43,400,000 35.3 345,000 230,000 14,000 589,000 5,975,000 9.9 11,060,000 1,296,000 102,000 12,458,000 34,896,000 35.7 C O TTO N T E X T IL E O PERA TIO N S A T C A P A C IT Y The Journal o f Commerce states that trading in cotton gray goods markets was extremely brisk during the first half o f May, but tapered off when shortages began to appear and buyers encountered increasing difficulty in their attempts to obtain supplies for quick and nearby delivery. Print cloth sales were well in excess o f pro duction and the end o f the month saw mills with enough unfilled orders to sustain the present high rate o f opera tions for the balance o f the year. Heavy goods such as ducks, drills, twills and osnaburgs continued active, and there was talk o f imposing priorities to assure a freer flow o f materials for defense purposes. Sharp price gains were reported in practically all divisions o f the industry, and in most lines quotations varied according to desired delivery dates, the higher prices applying to spot and nearby deliveries. Mill margins, the difference be tween the price o f a pound o f cotton and its approximate cloth equivalent, averaged 20.8 cents in May 1941 against 19.8 cents in April and 11.4 cents in May 1940. The 10-year (1930-39) average margin for May was 11.6 cents. COTTON CONSUMPTION— FIFTH DISTRICT In bales 1941........... 1941........... 1940........... 5 Months, 5 Months, Virginia District 223,743 223,032 165,312 169,452 171,865 135,329 20,192 18,959 13,635 413,387 413,856 314,276 1,063,742 860,421 808,001 667,146 88,330 68,031 1,960,0173 1,595,598 No. Carolina So. Carolina MONTHS May April May R A Y O N Y A R N SHIPMENTS SET N EW RECORD Shipments o f rayon filament yarn to domestic con sumers in May totaled 39,900,000 pounds, setting a new monthly record and exceeding production by 1,500,000 pounds, reducing reserve stocks of yarn from 7,400,000 pounds on April 30 to 5,900,000 pounds on May 31, ac cording to Rayon Organon. In May 1940 shipments totaled 32,200,00 pounds, and reserve stocks on May 31, 1940, amounted to 12,500,000 pounds. In the first five months o f this year shipments o f 180,600,000 pounds o f yarn to domestic consumers exceeded five months ship ments o f 154,700,000 pounds in 1940 by 17 per cent. The inventory o f rayon filament yarn held by broad weav ers at the end of May 1941 totaled 28,400,000 pounds, com pared with 27,300,000 pounds on April 30, 1941, and 21,600,00 pounds on May 31, 1940. MONTHLY REVIEW 4 C O TTO N PRICES HIG H EST SINCE 1937 R E T A IL A N D W H O LESALE TR A D E Spot cotton prices on 10 Southern markets advanced substantially between the beginning o f May and the mid dle of June, reflecting the influence o f legislation requir ing loans o f 85 per cent o f parity for the 1941-42 season, the strong domestic mill demand, and the general advance in commodity prices. The average price of middling grade 1 5 /16-inch staple cotton on the Southern markets was 11.41 cents per pound on May 2, from which the price rose steadily to 13.69 cents on June 13, a gain of $11.40 per bale. On June 14, 1940, the average price was 10.68 cents. Price rises in April and May caused withdrawals from Government loan stocks, and through June 7 about 2,032,000 bales, or almost two-thirds o f the total pledged on Government loans from the 1940-41 crop, had been withdrawn. Total loan stocks are now considerably less than 9,000,000 bales, including some 6,000,000 bales owned by the Commodity Credit Corpo ration. May 1940 413,387 314,276 869,659 1,028,639 566,146 784,861 Aug. 1 to May 31 This Year Last Year 3,610,817 3,162,073 6,745,724 5,622,339 Cotton growing states: 785,913 554,258 Cotton consumed ..................... Cotton on hand May 31 in Consuming establishments . . 1,536,640 1,049,885 Storage & compresses ......... . 10,972,929 10,027,199 Richmond (5) ......... Baltimore ( 10) . . . . Washington (7) Other Cities ( 12) Fifth District (79) * . + 16 ( + 16) + 20 ( + 20) + 22 ( + 21) + 17 ( + 15) 22, ( + 20 ) + Same stores by states, i eluding stores reporting sales only: Maryland (13) ............... Virginia (16) ............... West Virginia (15) North Carolina (16) . . South Carolina (12) + + + + 23 22 24 27 (+ (+ (+ (+ (+ + + + + + 16 8 12 U 11 20) 22) 17) 18) 21) + + + + + 114 188 144 134 148 + + + + + 5 15 14 10 13 ...................... ...................... ...................... ...................... ...................... ♦Includes stores reporting sales only. Note: Second figure, in parentheses, under Sales compares combined sales m 5 months of 1941 with sales in first 5 months of 1940. RETAIL FURNITURE SALES Changes in Sales, May and 5 Months of 1941 Compared with Compared with May 1940 5 Months 1940 Maryland, 9 stores ......................... +21 + 2,1 +44 +37 Dist. of Col., 7 stores..................... .. Virginia, 13 stores ....................... .. +29 +28 North Carolina, 5 stores................... +49 +22 South Carolina, 7 stores................. .. +50 +40 District, 41 stores ....................... +34 _j_29 STATES Fifth district states: Cotton consumed....................... Cotton on hand May 31 in Consuming establishments . Storage & compresses ........ . Percentage increase or decrease in sales, stocks, outstanding orders and outstanding receivables in May, 1941, in comparison with May, 1940 figures: Sales Stocks Orders Receivables % COTTON CONSUMPTION AND ON HAN D— BALES May 1941 DEPARTMENT STORE TRADE Individual Baltimore, 9 Richmond, 5 Washington, Cities: stores ........................... stores .............................. 7 stores ....................... +21 .{-is +44 +21 .^13 +37 United States: 918,902 Cotton consumed ..................... 641,636 Cotton on hand May 31 in Consuming establishments . . 1,927,939 1,314,792 Storage & compresses ......... . 11,358,417 10,091,517 71,539 226,469 Exports of cotton ....................... Spindles active, U. S................... . 22,980,286 22,213,378 TOBACCO M A N U F A C T U R IN G 7,914,140 6,595,635 975,540 5,921,431 LINES INCREASES Production o f all tobacco products increased in May over April except cigars, and M ay figures were higher in all lines except smoking and chewing tobacco than those for M ay 1940. Production figures released by the Bu reau o f Internal Revenue are as follow s: Smoking & Chewing tobacco, pounds ............... Cigarettes, number ............... Cigars, number ....................... Snuff, pounds ........................... W H OLESALE TRADE, 190 FIRMS May, 1941 April, 1941 May, 1940 25,621,949 17,858,111,310 475,067,340 3,609,796 25,619,906 15,853,661,710 490,584,765 3,507,505 26,457,385 16,274,867,793 469,313,069 3,466,676 Auto supplies (8) ......... Drugs & Sundries ( 1 1 ).. Dry goods (8) ............... Electrical goods ( 6) Hardware (14) ............. Groceries (57) ............... Industrial supplies (9) . Paper & products (8) . . Tobacco & products (8) . Miscellaneous (57) District Average (190) Net Sales May 1941 compared with May Apr. 1940 1941 + + + + + + + + + + + + 66 55 24 19 41 51 10 72 30 24 32 30 Source: Bureau of the Census. (Compiled June 21, 1941) — 3' — 14 + 2 + 5 — 17 + 15 + 9 + 10 + 26 + 4 + 15 + 6 Stocks May 31, 1941 compared with May 31 Apr. 30 1940 1941 + + + + + + + + + + + + 15 3 33 22 34 7 14 24 9 20 26 16 — 4 + 3 + 2 + 5 — 11 — 3 — 1 + 1 + 2 — 4 + + 1 o Ratio May collections to accounts outstanding May 1 72 60 96 56 75 51 96 83 77 88 71 70 MONTHLY REVIEW, June 30, 1941 FEDERAL RESERVE BANK OF RICHMOND SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) A ft e r a slight decline in A p ril industrial a ctivity increased sharply in M ay and the first h alf o f June. W holesale com m odity prices show ed a fu rth er con siderable advance and retail prices also increased. D istribution o f com m odities to consum ers was m aintained in large volum e. INDUSTRIAL PRODUCTION PRODUCTION Federal Reserve index of physical volume of production, adjusted for seasonal variation, 193539 average = 100. Subgroups shown are ex pressed in terms of points in the total index. By months, January 1935 to May 1941. DEPARTMENT STORE SALES AND STOCKS 1935 1936 1937 1940 1938 1941 Federal Reserve indexes of value of sales and stocks, adjusted for seasonal variation, 1923-25 average = 100. By months, January 1913*5 to May 1941. V olum e o f industrial output increased sharply in M ay, fo llo w in g a decline in A pril, and the B oard’ s seasonally adju sted in dex rose to 149 per cen t o f the 1935-1939 average, as com pared w ith 140 in A p ril and 143 in M arch. The decline in A pril had reflected m ainly reduced ou tpu t o f bitum inous coal and au tom obiles occasioned b y shutdowns accom pan yin g industrial disputes. These w ere settled during the m onth and in M ay and the first h a lf o f June output in these industries rose to the high levels prevailin g earlier. In a num ber o f other lines activity increased steadily th roughou t the spring months, particularly in the m achinery, a ircra ft and shipbuilding industries. Steel production was m aintained at 99 per cen t o f capacity, ex cep t f o r a short period during late A pril and early M ay when ou tp u t w as redu ced som ewhat ow in g to a shortage o f coal. Output o f n on ferrou s m etals also continued near ca p a city; deliveries o f fo r e ig n copper in M ay in creased to 49,000 tons, am ount ing to about one-third o f total deliveries to dom estic consum ers. T ow ard the end o f the m onth, as it becam e apparent that com bined m ilitary and civilian need f o r these metals w ould soon greatly exceed available supplies, a G eneral P referen ce O rder coverin g all iron and steel products w as issued by the P riori ties D ivision o f the O ffice o f P roduction M anagem ent and in June m andatory priority controls w ere established fo r copper and zinc. Textile production rose fu rth er in M ay, reflectin g increased activity at cotton , w ool, and rayon mills. A continued rise in ou tpu t o f m anufactured fo o d products was likewise reported and a ctivity in the chem ical and shoe industries was m aintained at earlier high levels, although usually there is a considerable decline at this season. P etroleu m production increased, and ou t put o f anthracite also advanced follow in g som e curtailm ent in A pril. Iron ore shipm ents am ounted to 11,000,000 tons in M ay, a new record level and near the shipping capacity o f the present Lake fleet. V alue o f construction con tra ct awards rose sharply in M ay, reflectin g in creases in both public and private construction , accord in g to F. W . D odge reports. A w ards fo r private residential and n onresidential building increased m ore than seasonally, and contracts fo r defen se p ro je cts continued in large volum e. WHOLESALE PRICES DISTRIBUTION D istribution o f com m odities to consum ers was sustained at a high level in M ay. D epartm ent store sales show ed a fu rth er rise, w hile sales at variety stores declined b y slightly m ore than the usual seasonal am ount. Retail sales o f new autom obiles continued at the high A p ril level and sales o f used cars rose further. F reigh t-car loadings increased sharply in M ay, reflectin g a m arked rise in coal shipments and a fu rth er expansion in loadings o f m iscellaneous freigh t. In the first h alf o f June total loadings w ere m aintained at the advanced level o f other recen t weeks. 1935 1936 1937 1938 1939 1940 1941 Bureau of Labor Statistics’ indexes, 1926 = 100. “ Other” includes commodities other than farm products and foods. By weeks, January 5, 1935 to June 14, 1941. MONEY RATES IN NEW YORK CITY C om m ercial loans at reportin g banks in 101 cities continued to rise during the fo u r w eeks ending June 11. Bank holdings o f U nited States G overnm ent securities increased further, chiefly through the purchase o f bills b y N ew Y ork City banks and o f bonds by banks in other leading cities. A s a result o f the expansion in loans and investm ents bank deposits continued to increase. /V j A aa. - v TREASURY NOTES '1 1938 fc /\ \ TREASlJRY BILLS / H 1937 - j s iu ___ 1940 UNITED STATES GOVERNMENT SECURITY PRICES 1941 Weekly averages of daily yields of 3- to 5-year tax-exempt Treasury notes, Treasury bonds call able after 12 years, and average discount on new issues of Treasury bills offered within week. For weeks ending January 5, 1935 to June 14, 1941. W holesale prices o f a num ber o f agricultural and industrial com m odities showed fu rth er increases from the m iddle o f M ay to the m iddle o f June and the general index o f the Bureau o f L abor Statistics advanced tw o points to 87 per cent o f the 1926 average. F ederal action to lim it price increases was e x tended to som e consum er goods, principally new autom obiles, hides, and certain cotton yarns. In retail m arkets prices o f m ost grou ps o f com m odities have advanced, reflectin g in part increases in w holesale prices earlier this year. BANK CREDIT .............TR lEASURY BONOS "v v A r* ,V| COMMODITY PRICES F ollow in g a rise in the latter part o f M ay T reasu ry b on d prices declined slightly in the first half o f June. On June 14 the 1960-65 bon ds w ere % o f a point below the all-tim e peak in prices o f D ecem ber 10. Y ields on both taxable and tax-exem pt 3- to 5-year notes declined slightly fr o m the m iddle o f M ay to the middle o f June.