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MONTHLY REVIEW o f Financial and Business Conditions F if t h Federal Res e r v e D istrict Federal Reserve Bank, Richmond, Va. March 31, 1940 Summary of February Business Conditions R A D E and industry in the Fifth Federal Reserve dis trict were slightly below seasonal levels in February on the whole, but continued well above the levels o f a year ago. Debits to individual accounts, reflecting trans actions through the banks in 25 cities, declined somewhat more than usual in February, but were 14 per cent above February 1939 debits. Labor experienced a moderate de crease in employment and payrolls last month, chiefly due to lessened activity in coal mining and the cotton textile industry, but employment continued better than a year ago. Bituminous coal production in the district declined about 9 per cent from January to February, but in the later month was 22 per cent above production in February 1939. Textile mills reduced operations about 7 per cent in February from January in order to bring production o f textiles more nearly in line with shipments, but activity during the month was 18 per cent greater than in February last year. Shipments o f rayon yarn declined a little more than seasonal average last month, but were 16 per cent above February 1939 shipments. Production o f rayon yarn again exceeded shipments, and reserve stocks rose 19 per cent, but are still 79 per cent less than stocks a year ago. T CO N SU M ER B U Y IN G HOLDS UP Distribution o f goods in February at retail and whole sale continued substantially above distribution a year ago. Retail trade as reflected by department store sales was 11 per cent greater in February this year than in the same month last year, and retail furniture sales increased 20 per cent. Sales o f new passenger automobiles last month ex ceeded sales in February 1939 by 21 per cent, although sales were 12 per cent less than those in January. W hole sale firms in many lines averaged sale increases o f 3 per cent in February this year over January sales, and also sold 14 per cent more than in February 1939. A ll whole sale lines fo r which data are available sold more goods in February 1940 than in February 1939 except dealers in Paper & Products, which shows a small decrease o f 2 per cent. BUSINESS S T A T IS T IC S -F IF T H FEDERAL RESERVE DISTRICT Debits to individual accounts (25 cities)........................ ............ Sales, 31 department stores, 5th district.......................... ........... Sales, 39 furniture stores, 5th district............................ ........... Sales, 211 wholesale firms, 5th district............................ Registrations, new autos, 5th district.............................. Number o f business failures, 5th district........................ Liabilities in failures, 5th district.................................... ......... Value o f building permits, 31 cities................................ .......... Value of contracts awarded, 5th district........ ................ .......... Cotton consumption, 5th district (B a les)...................... Cotton price, cents per lb., end o f month........................ Print cloths, 39 in., 80x80, end o f month........................ Rayon shipments, U. S. (P ounds).................................... Rayon yarn stocks, U. S. (P ou n ds)................................ Bituminous coal mined, U. S. (T o n s ).............................. February 1940 January 1940 February 1939 % Change Month Year $1,189,136,000 7,334,877 $ 1,012,329 $ $ 11,229,000 15,581 $1,381,416,000 7,218,855 $ 922,580 $ $ 10,907,000 17,660 $1,042,090,000 6,623,599 $ 847,030 $ 9,863,000 $ 12,895 — 14 + 2 + io + 3 — 12 65 469,000 7,216,892 19,053,000 270,630 — 21 $ $ $ 46 584,000 7,072,557 29,605,000 319,601 10.74 6.63 29,700,000 8,300,000 39,270,000 $ $ $ 58 579,000 4,987,380 22,016,000 346,605 10.52 7.00 31,400,000 7,000,000 44,940,000 $ $ $ 8.72 25,700,000 39,600,000 34,134,000 + 1 + 42 + 34 — 8 + 2 —■ 5 — 5 + 19 — 13 + 14 + 11 + 20 + 14 + 21 — 29 + 25 __ 2 + 55 + 18 + 23 + 16 — 79 + 15 MONTHLY REVIEW 2 RESERVE BANK C IR C U L A T IO N RISES M U T U A L SA VIN G S CO N TIN U E A T R E CO RD L E V E L Changes in the principal items on the statement o f the Federal Reserve Bank o f Richmond during the past month were o f little significance, although Federal Reserve notes in actual circulation showed an unseasonal rise. Deposits in 10 Baltimore mutual savings banks totaled $222,888,548 on February 29, 1940, setting a new record for the third successive month. On January 31, 1940, de posits o f $222,744,893 were reported, and on February 28, 1939, deposits totaled $219,404,340. RESERVE BAN K STATEMENT ITEMS Fifth District 000 omitted Mar. 15 Feb. 15 ITEMS 1940 1940 $ 113 $ 117 Discounts held ........................................ 86 216 Foreign loans on gold......................... Open market paper................................ 0 0 909 933 Industrial advances ............................ 125,583 125,583 Government securities ....................... Total earning assets......................... 126,849 Circulation of Fed. Res. notes......... 221,028 219,648 Members’ reserve deposits................... 296,184 297,664 Cash reserves .......................................... . , 443,536 438,385 Reserve ratio ................................................. 78,28 77.96 Mar. 15 1939 $ 170 0 24 1,204 133,524 134,922 195,961 233,510 351,097 73.06 IN S O L V E N C Y STATISTICS Bankruptcy statistics for the Fifth district and the United States, as reported by Dun & Bradstreet, are as fo llo w s: Number of Failures District U. S. PERIODS February 1940 ....................... January 1940 ......................... February 1939 ....................... 2 Months, 1940 ..................... 2 Months, 1939 ..................... 46 58 65 104 133 1,042 1,237 1,202 2,279 2,769 Total Liabilities District U. S. $ 584,000 579,000 469,000 1,163,000 1,087,000 $13,472,000 15,279,000 13,582,000 28,751,000 34,372,000 M EM BER BAN K LO AN S IN C REA SE E M P L O Y M E N T D ECLIN ES M O D E R A T E L Y Loans at reporting member banks rose further between February 14 and March 13, while investments in securities again declined. Both demand and time deposits increased during the month, and reserve balances at the Reserve bank rose. On March 13 this year figures were materially higher than on March 15, 1939, for loans, reserve bal ances, cash in vaults and demand depositsSELECTED ITEMS— 41 REPORTING BANKS Fifth District 000 omitted Mar. 13 Feb. 14 ITEMS 1940 1940 $264,196 $262,975 Loans & discounts ................................ 446,193 Investments in securities................... 450,49? 195,333 192,962 Reserve bal. with F. R. bank............. Cash in vaults.......................................... 22,483 22,024 538,986 531,919 Demand deposits .................................... Time deposits ........................................... 200,084 Money borrowed .......................................... 0 0 Mar. 15 1939 $232,202 446,821 145,974 16,889 468,908 198,789 0 DEBITS IN SE ASO N AL D ECLIN E Debits to individual accounts in February 1940 declined by 14 per cent from January figures, about an average seasonal drop, but were 14 per cent above February 1939 debits. Every reporting city in the district showed lower figures in February than in January, but higher figures than in February last year. Newport News reported the smallest decline from January 1940 and the largest increase over February 1939. CITIES DEBITS TO INDIV ID U AL ACCOUNTS 000 omitted Jan. Feb. Feb. 1939 1940 1940 Maryland Baltimore ............. Cumberland ......... Hagerstown ......... Dist. of Col. Washington ......... Virginia D an v ille ................. Lynchburg ........... Newport News . . Norfolk ................. Portsm outh........... Richmond............... Roanoke ............... West Virginia Charleston ........... Huntington ......... Parkersburg ......... North Carolina Charlotte ............. Durham ................. Greensboro ........... Raleigh ................. Wilmington ......... Winston-Salem . . South Carolina Charleston ........... Columbia ............. Greenville ............. Spartanburg ----District Totals , . $ 343,749 7,454 7,456 $ 401,652 8,041 8,585 $ 294,465 6,751 6,305 239,885 281,077 7,609 13,522 11,067 45,217 3,976 140,191 25,801 % of Change Year Month — 14 — 7 — 13 + 17 + 10 + 18 220,617 -1 5 + 9 10,065 15,861 11,664 51,563 4,534 159,624 27,913 6,606 11,890 8,110 41,099 3,695 125,481 22,806 — 24 — 15 — 5 — 12 — 12 — 12 — 8 + + + + + + + 15 14 36 10 8 12 13 46,355 15,441 8,290 50,997 17,295 10,298 38,754 13,177 7,320 — 9 — 11 — 19 + 20 + 17 + 13 11,547 61,375 27,885 18,745 34,973 10,316 35,247 13,251 68,517 31,294 20,089 53,245 11,895 39,841 10,152 50,073 22,345 16,630 33,698 8,753 32,482 — 13 — 10 — 11 — 7 — 34 — 13 — 12 + 14 +23 + 25 + 13 + 4 + 18 + 9 17,695 25,934 19,664 9,742 $1,189,136 19,822 30,456 22,309 11,528 $1,381,416 14,745 22,562 15,851 7,723 $1,042,090 -1 1 — 15 — 12 — 15 — 14 +20 + 15 + 24 + 26 + 14 The number o f workers gainfully employed in the Fifth Reserve district declined moderately in February, chiefly in coal mining and the textile industry. This was partly offset by some improvement in the weather, which allowed for an increase in outside construction work, but on the whole weather continued unusually severe until the middle o f March. Tobacco markets have closed for the season, laying off many warehouse employees, but this is a regular seasonal development. The following figures, collected for the most part by the Bureau o f Labor, show the trend o f employment and payrolls in the Fifth district from January to February: Percentage change from Jan. 1940 to Feb. 1940 in number in amount on payroll of payroll STATES ........... Dist. of Columbia ............................ ........... ........... West Virginia .................................... ........... North Carolina .................................. ........... South Carolina .................................. ........... — 1.0 + 0.4 — 0.6 — 1.5 — 0.1 — 0.8 + — — + + 1.2 0.2 0.5 0.5 1.3 0.2 A U T O SALES A P P R O A C H F E B R U A R Y RECO RD New passenger automobiles registered in the Fifth dis trict in February totaled 15,581, a seasonal decline from 17,660 cars registered in January but 21 per cent above February 1939 registrations. The number o f new cars sold in the district last month exceeded sales in any other February since 1929. Retail sales, however, did not equal shipments from factory to dealers, and dealers’ stocks in creased substantially. Used car stocks also increased dur ing February. H owever, spring and early summer sales are expected to reduce both new and used stocks, neither o f which are unusually large fo r this time o f year. Regis tration figures by states, collected by R . L. Polk & Co., are as fo llo w s: REGISTRATIONS OF N E W PASSENGER CARS— NUMBER STATES Maryland ........... Dist. of Col. . . . West Virginia . . No. Carolina . . . So. Carolina . . . District ........... Feb. 1940 2,986 1,617 3,079 1,824 3,644 2,431 15,581 Feb. 1939 2,297 2,138 2,608 1,330 2,803 1,719 12,895 % Change + 30 — 24 + 18 + 37 + 30 + 41 + 21 2 Months 2 Months 1940 1939 6,332 4,783 3,347 3,420 6,976 5,649 2,753 3,869 7,940 6,412 4,777 3,649 33,241 26,666 % Change + 32 — 2 + 23 + 41 + 24 + 31 + 25 C O N STR U C TIO N C O N T R A C T S INC REA SE Building permits issued in 31 Fifth district cities totaled $7,072,557 in February, compared with $4,987,380 in January 1940 and $7,216,892 in February 1939. W ash ington led last month with permits totaling $2,531,565, Baltimore was second with $1,285,494, Richmond third 3 MONTHLY REVIEW with $473,697, and Charleston, W . Va-, fourth with $457,778. Eighteen o f the 31 reporting cities issued permits last month in excess o f February 1939 valuation, but sub stantial decreases from 1939 figures in Durham, Charles ton, S. C., Spartanburg and Washington pulled this year’s district total below the aggregate for February last year. Contracts actually awarded in the Fifth district last month, valued at $29,605,000, exceeded awards in any other February since 1929, and were also larger than awards totaling $22,016,000 in January this year. T w o publicly financed contracts awarded last month totaled more than $9,000,000, one a naval medical center near Bethesda, Md., for $4,850,000, and the other a W ar D e partment office building in Washington for $4,329,000. Contract award figures collected by the F. W . Dodge Cor poration by states for February 1940 and 1939 are as fol lows : CONSTRUCTION CONTRACTS AW AR D ED STATES Maryland .......................................... Dist. of Col........................................ Virginia ............................................ West Virginia ................................ North Carolina .............................. South Carolina .............................. District .......................................... Feb. 1940 $10,234,000 6,839,000 4,728,000 2,149,000 3,987,000 1,668,000 $29,605,000 Feb. 1939 $ 4,697,000 3,307,000 4,413,000 2,455,000 2,771,000 1,410,000 $19,053,000 % Change +118 +107 + 7 — 12 + 44 + 18 + 55 Bituminous coal production in the United States totaled 39.270.000 net tons in February 1940, compared with 44,940.000 tons dug in January and 34,134,000 tons in Febru ary 1939. O n a work-day basis, production o f 1,577,000 tons last month was 8.4 per cent below 1,722,000 tons per day in January but 10.4 per cent above daily output o f 1,428,000 tons in February 1939. Shipments through Hampton Roads this calendar year to March 9 o f 4,902,966 tons exceeded shipments to the same date in 1939 o f 4,427,294 tons by 10.7 per cent. In the Fifth district, coal mined in February 1940, January 1940 and February 1939, was as follow s: SOFT COAL PRODUCTION IN TONS REGION Feb. 1940 Jan. 1940 Feb. 1939 11,155,000 1,441,000 164,000 12,760,000 44,940,000 28.4 8,285,000 1,084,000 125,000 9,494,000 34,134,000 27.8 TE X T IL E M ILLS AD JU ST PRO D U CTIO N Cotton textile mills restricted operations moderately in February, bringing production more nearly in balance with shipments. The back-log o f orders built up last fall hav ing been substantially reduced, some accumulation o f in ventories began to develop after the first o f the year. Prices o f unfinished cotton cloth declined in February, and the average mill margin in the first week in March at 11.83 cents compared with an average o f 12-25 cents in February. Consumption o f cotton by states in the Fifth district in February 1940, January 1940 and February 1939, in bales, is shown in the accompanying table: COTTON CONSUMPTION— FIFTH DISTRICT In Bales MONTHS No. Carolina So. Carolina Virginia February 1940 ................... 174,359 131,419 13,823 January 1940 ..................... 190,299 142,554 13,752 February 1939 ................... 148,164 111,097 11,369 2 months, 1940 ................. 364,658 273,973 27,575 2 months, 1939 ................. 305,633 229,976 22,890 District 319,601 346,605 270,630 666,206 558,499 R A Y O N M ARK ET CONTIN UES A C T IV E Shipments o f rayon filament yarn, as tabulated in Rayon Organon for the United States, amounted to 29,700,000 pounds during February, a decline from 31,400,000 pounds C O TTO N CO N SU M PTIO N RECEDES Spot cotton prices on Southern markets declined slightly between the middle o f February and the middle o f March, but mills were not active purchasers and quotations were more or less nominal. The average price for middling grade 15/16 inch staple was 10.86 cents per pound on February 16, but after rising to 10.92 cents on February 23, the price dropped to 10.61 cents on March 15. COTTON CONSUMPTION AND ON HAND— BALES Feb. 1940 C O A L M IN IN G SLOWS D O W N West Virginia ....................... ............10,163,000 Virginia .................................. 1,269,000 Maryland .................................. 153,000 5th District ................................... 11,585,000 United States ................... ............ 39,270,000 % in District ..................... 29.5 shipped in January but a substantial increase over ship ments o f 25,700,000 pounds in February 1939. For the second month in succession production exceeded ship ments, and reserve stocks rose from, 7,000,000 pounds on January 31 to 8,300,000 pounds on February 29. H ow ever, reserves o f yarn are still very low, and are only a fraction o f stocks on hand totaling 39,600,000 pounds at the end o f February 1939. N o changes o f importance have occurred in rayon yarn prices since last fall, but in late February the largest American producer o f rayon wood pulp announced advances o f $5 per ton for several grades o f bleached sulphite pulp. Fifth district states: Cotton consumed ....................... Cotton growing states: Cotton consumed ....................... Cotton on hand Feb. 29 in Consuming establishments . . Storage & compresses ........... United States: Cotton consumed ....................... Cotton on hand Feb. 29 in Consuming establishments . . Storage & compresses ........... Exports of cotton .......................... Spindles active, U. S.................... Feb. 1939 Aug. 1 to Feb. 29 This Year Last Year 319,601 270,630 2,232,681 1,907,118 565,566 475,360 3,996,472 3,354,823 1,434,2831,342,825 12,093,29814,075,654 662,659 ............... ............. ........... ........... 562,580 4,704,504 1,701,5101,559,417 12,157,07414,134,827 746,680 263,922 22,803,79622,532,814 3,959,420 ............... ............. 4,916,511 ............. ........... ........... 2,455,803 ........... A U C T IO N T O B A C C O M ARKETS CLOSE All tobacco markets have closed for the season, but com plete figures on sales are not yet available. Season figures will be published next month. TO B A C C O M A N U F A C T U R IN G DECREASES The manufacture o f tobacco products declined season ally in February from January levels, but was in larger volume than in February 1939. Production figures for February 1940 and 1939 were given by the Bureau o f In ternal Revenue as follow s: TOBACCO PRODUCTS MANUFACTURED Smoking & chewing tobacco, pounds ............... Cigarettes, number ................. Cigars, number ....................... Snuff, pounds ......................... .. Feb. 1940 Feb. 1939 % Change 23,712,060 13,162,661,213 375,824,394 3,144,556 22,445,896 11,781,749,850 361,233,088 2,978,851 + 6 +12 4" * + 6 R E T A IL A N D W H O LE SA LE T R A D E DEPARTMENT STORE TRADE Net Sales Feb. 1940 comp, with February 1939 Net Sales Stocks Jan. 1 to date Feb. 29, 1940 comp, with comp, with same period Feb. Jan. last year 1939 1940 Richmond (3) . . . Baltimore (8) . . . Washington (6) . Other Cities (14 ). District (31) + + + + + 12.7 10.3 11.1 8.2 10.7 + 6.2 + 13.3 + 9.2 + 7.2 + 10.0 Same stores by states, with 24 stores added: Virginia (13) . . . West Va. (9) . . . No. Carolina (8) . So. Carolina (11) + 1 0 .6 + 1 3 .8 + 1 2 .5 + 1 4*6 + 5.9 + 16.8 + 6.7 + 15.0 + 8.1 + 7.3 + 8.9 + 7.5 + 8.1 + + + + + 9.8 17.5 12.9 13.2 14.1 Ratio Feb. collections to accounts outstanding Feb. 1 31.3 30.6 28.1 29.1 29.4 4 MONTHLY REVIEW RETAIL FURNITURE SALES W H O LESALE TRADE, 211 FIRMS % Change in Sales, February and 2 Months 1940 Compared with Feb. 1939 STATES +24 + 18 Maryland, 10 stores . . . . Dist. of Col., 7 stores . . Virginia, 10 stores ......... North Carolina, 4 stores South Carolina, 7 stores District, 39 stores* . . . + 8 + 6 + 46 +20 Individual Cities: Baltimore, 10 stores ..................... Richmond, 5 stores ....................... Washington, 7 s to r e s ................... + 24 +21 + 18 Compared with 2 Months 1939 LINES + 23 Auto supplies (8) + 8 + 1 + 8 ......... Drugs (11) ....................... Dry Goods (8) ................. Electrical goods (15) . . . Groceries (62) ................. Hardware (19) ............... Indus, supplies (12) . . . Plumbing & heating (7) Paper & products (9) . . . Tobacco & products (7 ). Miscellaneous (49) ......... District Totals (211) . + 29 + 14 + 23 — 7 + 8 * Includes 1 store in W . Va. Net Sales February 1940 compared with Feb. Jan. 1939 1940 — 6 + 18 + 20 + 46 + 19 — 6 + 4 + 9 + 16 + 10 + 14 — 2 — 14 + 13 +21 + 2 — 1 + » — 14 — 2 + 13 + 3 + 12 + 2 + 14 + 3 Stocks Ratio Feb. Feb. 29, 1940 collections compared with to accounts Feb. 28 Jan. 31 outstanding 1939 1940 Feb. 1 0 58 + 5 42 + 14 + 3 + 4 88 + 3 39 +21 + 1 68 + 4 + 9 87 + 7 + 1 + 1 37 + 9 + 15 0 59 + 12 — 1 48 — 3 61 + 3 + 5 75 + 2 _ 4 71 + 10 + 10 61 + 1 LIVE STOCK ON FARMS ON JANUARY 1, FOR THE PAST TEN YEARS, WITH TOTAL VALUATION FIGURES (All figures in thousands: i. e., 000 omitted) Horses & colts.... 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 Mules & colts.... 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 Cattle & calves.... 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 Hogs & pigs....... 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 Sheep & lambs.... 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 Maryland No. Value 89 $ 7,387 5,916 87 85 5,780 6,806 82 8,115 80 9.695 81 10,062 81 82 9,950 82 9.200 82 8,481 29 3,045 2,755 29 2,581 29 2,987 29 3,491 29 4,013 29 4,004 28 28 4,060 28 3.696 3,668 28 292 17,841 12,154 295 8,700 300 304 8.725 9,687 307 13,913 307 307 14,735 313 16,397 322 16,324 16,593 338 168 1,596 160 1.200 882 180 186 874 159 1,036 1,676 167 184 1,839 1.725 191 210 1,845 231 1,566 738 107 104 530 376 99 432 95 94 435 86 534 84 552 81 585 534 77 77 545 Virginia No. Value 195 $13,290 12,373 187 178 11,768 170 13.770 163 16,049 165 19,575 167 21,307 20.771 167 19.727 169 169 17.728 8,014 94 7,834 93 7,442 90 92 9,108 93 11,028 93 13,076 96 14,546 94 14,274 95 14,063 96 13,830 754 25,536 782 21,706 800 16,955 17,291 856 870 19,740 861 28,443 852 28,906 869 32,250 886 34,161 913 35,402 4,069 508 3,343 551 2,577 579 585 2,545 3,314 543 597 5,691 663 6,114 663 5,904 683 5,722 717 4,543 495 3,306 485 2,212 480 1,671 2,021 470 438 1,947 416 2,569 2,596 395 399 2,823 2,602 387 379 2,610 West Virginia Value No. $ 8,690 110 106 7,420 7,622 103 8,686 101 99 10,078 11,438 98 11,604 96 11,497 96 11,079 96 10,119 95 1,079 13 888 12 876 12 972 12 1,116 12 1,380 12 1,428 12 1,428 12 1,392 12 1,272 12 18,000 500 15,561 546 13,350 596 12,540 627 12,856 612 19,530 618 17,491 576 20,447 588 21,415 600 22,116 600 1,428 168 1,320 176 1,019 196 884 188 1,106 188 1,807 197 1,859 213 1,823 209 1,834 217 1,539 230 3,687 625 2,776 631 2,082 631 2,257 610 606 2,401 3,019 588 2,931 547 3,062 547 536 2,911 531 2,898 The number o f cattle and hogs on Fifth district farms increased during 1939, but mules and sheep declined, while horses remained unchanged. Average value per head rose for cattle and sheep, but horses and mules declined slightly in value and hogs dropped by nearly 23% per head. Dur ing the past 10 years, horses on farms decreased 13% in number but rose 2 3% in aggregate value; mules rose 4 % in number and 67% in value; cattle rose 20% in number and 16% in value; hogs rose 35% in number but North Carolina No. Value 83 $ 6,308 77 5,005 72 4,824 5,862 69 67 6,884 68 7,960 69 8,675 69 8,603 8,112 70 7,892 71 32,148 282 279 24,831 285 25,365 290 33,596 41,242 295 298 51,150 301 54,110 305 55,136 53,198 305 52,287 305 20,032 558 594 16,157 659 13,575 679 13,399 685 14,624 671 18,225 651 18,813 638 18,896 664 20,716 684 22,010 913 9,313 954 7,346 1,096 5,590 5,822 1,005 9'47 7,241 966 10,255 1,111 11,523 1,111 10,994 1,155 10,833 1,167 8,358 522 90 86 335 85 264 81 278 77 287 73 351 62 321 62 362 353 60 318 54 South Carolina Value No. 28 $ 1,932 25 1,350 23 1,449 22 1,760 21 2,050 20 2,250 2,465 20 2,265 20 2,189 20 2,092 20 183 16,836 181 13,394 179 13,783 179 20,943 183 25,071 185 30,525 189 34,398 187 31,790 185 30,525 183 31,010 310 10,261 324 7,679 351 6,844 372 7,031 386 7,327 374 8,131 374 8,834 9,322 352 359 9,731 359 10,270 494 4,347 576 3,283 600 2,820 552 2,705 509 2,917 519 4,425 4,828 550 4,635 540 583 4,633 688 4,512 14 64 14 50 14 43 13 40 13 40 12 45 11 36 11 37 10 32 10 37 Fifth No. 505 482 461 444 430 432 433 434 437 437 601 594 595 602 612 617 626 626 625 624 2,414 2,541 2,706 2,838 2,860 2.831 2.760 2.760 2.831 2,894 2,251 2,417 2,651 2,516 2,346 2,446 2,721 2,714 2,848 3,033 1,331 1,320 1,309 1,269 1,228 1,175 1.099 1.100 1,070 1,051 District Value $ 37,607 32,064 31,443 36,884 43,176 50,918 54,113 53,086 50,307 46.312 61,122 49,702 50,047 67,606 81,948 100,144 108,486 106,688 102,874 102,067 91,670 73,257 59,424 58,986 64,234 88,242 88,779 97.312 102,347 106,391 20,753 16,492 12,888 12,830 15,614 23,854 26,163 25,081 24,867 20,518 8,317 5,903 4.436 5,028 5,110 6,518 6.436 6,869 6,432 6,408 declined 1 % in value; and sheep declined 21% in number and 23% in value. Between 1931 and 1940, inclusive, horses varied in average value per head from $67 in 1932 to $125 in 1937; mules ranged from $84 in 1932 and 1933 to $173 in 1937; cattle ranged from $20.78 in 1934 to $37.97 in 1931; hogs ranged from $4*86 in 1933 to $9.75 in 1936; and sheep ranged from $3.39 in 1933 to $6.25 in 1931. (Compiled March 21, 1940) MONTHLY REVIEW, March 31, 1940 FEDERAL RESERVE BANK OF RICHMOND SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal ReservelSystem) Industrial activity showed a fu rth er sharp decline in F ebru ary and a less m arked reduction in the first h a lf o f M arch. W holesale com m odity prices generally w ere steady, follow in g som e decline in Janu ary and early F ebru ary. INDUSTRIAL PRODUCTION PRODUCTION Index of physical volume of production, ad justed for seasonal variation, 1923-1925 averages 100. Durable manufactures, nondurable manufac tures, and minerals expressed in terms of points in the total index. By months, January 1934 to February 1940. FREIGHT CAR LOADINGS Index of total loadings of revenue freight, ad justed for seasonal variation, 19*23-1925 averages 100. Miscellaneous, coal and all other expressed in terms of points in the1total index. By months, January 1934 to February 1940. WHOLESALE In F ebru ary the B oard’s seasonally adjusted index o f industrial production w as 109 per cent o f the 1923-1925 average as com pared w ith 119 in January and 128 in December. A fu rth er decline at a slow er rate is indicated fo r M arch on the basis o f data now available. In A u gu st 1939, the m onth prior to the outbreak o f w ar, the index w as 103. Steel production, w hich had risen sharply in the latter p a rt o f 1939 and then decreased considerably in January, showed a fu rth er m arked reduction in F ebru ary to 69 per cent o f capacity. In the first h a lf o f M arch output w as steady at a rate o f about 65 per cent. P late glass production declined fu rth er in F ebru ary and output o f lum ber, w hich had dropped sharply in January, showed less than the usual seasonal rise. Autom obile production in F ebru ary w as maintained at the high level prevailin g in January. D ealers’ stocks o f new cars rose to high levels in this period, notw ithstanding the fa c t that retail sales o f cars w ere in large volum e fo r this tim e o f the year. In the first h a lf o f M arch output o f autom obiles showed less than the custom ary sharp increase. In some industries not included directly in /the B oa rd’s production index, particu larly the m achinery, a ircra ft, and rayon industries, activity continued at high levels. Changes in output o f nondurable goods w ere la rg ely seasonal in F ebru ary except at textile m ills and sugar refineries. A t cotton textile m ills activity declined som ewhat from the high levels prevailin g since early last autumn. A ctiv ity at woolen mills, w hich had decreased considerably in Decem ber and January, declined fu rth er in F ebru ary and output o f silk products w as re duced to an exceptionally low level. Sugar refining showed less than the sharp rise usual at this season. M ineral production declined in F ebru ary, ow in g c h ie fly to a considerable reduction in output o f anthracite. Bitum inous coal production declined some w hat, follow in g a rise in January, while ou tpu t o f crude petroleum increased to new high levels. Value o f construction contract aw ards in F ebru ary showed little change from the Janu ary total, reflecting a fu rth er decrease in contracts fo r public construction and a contraseasonal increase in private contracts, according to figures o f the F. W . D odge C orporation. The increase in private residential awards n early equalled the decline that occurred in the previous m onth when severe storm s curtailed building operations in m any areas. DISTRIBUTION R etail distribution o f general m erchandise showed little ch an ge fr o m Janu ary to Febru ary and rem ained som ewhat below the high level o f the latter pa rt o f last year, w ith due allow ance fo r seasonal changes. Sales at variety stores and m ail-order houses showed about the usual seasonal rise in February, w hile at departm ent stores, w here some increase is also usual at this tim e o f year, sales remained at about the Jan u ary level. F reigh t-car loadings declined considerably from Janu ary to Febru ary, re flecting f o r the m ost part a sharp reduction in coal shipm ents and some fu rth er decrease in loadings o f m iscellaneous freigh t. PRICES 110 100 FOREIGN TRADE 1934 1937 1935 1933 1939 1940 Index compiled by the U. S. Bureau of Labor Statistics, 1926=100. By weeks, 1934 to March 9, 1940. E xp orts o f United States m erchandise in F ebru ary declined less than seasonally from the high levels reached in D ecem ber and January. The principal decreases w ere in shipments o f cotton, copper, and a ircra ft, w hich had been exceptionally large in previous months. E xports to Japan fe ll sharply and there w ere declines also in shipments to the U nited K ingdom , the N etherlands, and Russia, w hile exports to Belgium and the Scandinavian countries increased. T here has been little change in the rate o f gold inflow, The m on etary gold stock increased by $246,000,000 in F ebru ary and b y $109,000,000 in the first tw o weeks o f March. COMMODITY PRICES P rices o f nonferrous metals advanced from the middle o f F ebru ary to the middle o f M arch, w hile steel scrap and textile m aterials declined somewhat fu rther. M ost other commodities showed little change and in the week ending M arch 9 the general index o f the Bureau o f L abor Statistics w as at 78.3 per cent o f the 1926 average as com pared w ith 78.5 a month earlier. GOVERNMENT SECURITY MARKET F ollow in g a relatively steady m arket du ring F ebruary, prices o f long-term T reasu ry bonds increased sharply a fter the announcement b y the T reasu ry early in M arch that its operations du ring th at month would be lim ited to the issuance o f a five-year note to refun d a note m atu ring next June. BANK CREDIT 1934 1935 1936 1937 1933 1939 1940 For weeks ending January 6, 1934, to March 16, 1940. T otal loans and investm ents at reportin g mem ber banks in 101 leading cities rose during the six weeks ending M arch 13, la rgely as a result o f in creases in investments at N ew Y ork City banks. F ollow in g a reduction during January, com m ercial loans increased, m ostly at banks in cities outside N ew Y ork . Bank reserves and deposits continued to increase during the period.
@FedFRASER