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MONTHLY REVIEW o f Financial and Business Conditions F ifth Federal Re s e r v e d is tr ic t Federal Reserve Bank, Richmond, Va. March 31, 1941 Summary of February Business Conditions U S IN E S S and industry in the Fifth Federal R e serve District were sustained on high levels during February and the first half o f March. There were a few recessions from January levels, mostly seasonal in charac ter and due to the shorter month, but all important indi cators were well above 1940 figures. Nearly all phases o f trade and industry in the district are benefiting either directly or indirectly from the Defense program. Con struction is under way in very large volume, accounted for in large part by Government and private work in connec tion with the efforts of the country to prepare for possible involvement in war and to produce goods needed under the Lease-Lend program. Fifth district textile mills are op erating at or near capacity, having large backlogs o f orders for materials needed by the A rm y and Navy and by com mercial customers. A considerable number o f mills are sold up into late summer and fall months, and advancing prices on many constructions have widened mill margins, although the increased demand for and the scarcity of “ free” cotton have raised cotton prices in recent weeks. Coal production is at a higher rate than a year ago, to meet increased needs o f industry and the railroads. The demand for lumber from Southern mills is greater than at any other time since the early twenties. Shipyards and B airplane factories continue to expand, and a very large new smokeless powder plant in the district is beginning opera tions this month. A large number o f smaller industrial plants hold Government contracts for miscellaneous ar ticles ranging from vinegar to ammunition components. Skilled labor is practically fully employed. The sharp in crease in employment in the past few months has sub stantially increased consumer purchasing power, and dis tribution o f consumer goods has risen accordingly. De partment store sales in February in 79 Fifth district stores averaged 14 per cent above sales in February last year, and retail furniture sales in 39 stores rose 26 per cent during the same period. Wholesale trade in nearly all lines also rose, 181 reporting firms gaining 19 per cent in sales in February this year over sales a year ago. Sales o f new automobiles last month were far above sales in February 1940, and used cars moved from dealers’ lots in large numbers. Debits to individual accounts in 25 Fifth district cities, reflecting transactions through the banks, rose 21 per cent in February in comparison with February 1940 debits, and loans made for industrial, commercial or agricultural purposes by reporting member banks in the Fifth district advanced 25 per cent between the middle o f March last year and this. BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT February 1941 January 1941 February 1940 Debits to individual accounts (25 cities).. Sales, 79 department stores, 5th district.... Sales, 39 furniture stores, 5th district...... Sales, 181 wholesale firms, 5th district..... Registrations, new autos, 5th district...... $1,440,567,000 $ 10,550,615 $ 1,179,190 $ 11,999,000 21,621 $1,649,671,000 $ 10,587,510 $ 1,059,421 $ 11,822,000 23,362 $1,189,136,000 $ 9,223,196 $ 932,315 $ 10,059,000 15,581 Number of business failures, 5th district. Liabilities in failures, 5th district.............. Value of building permits, 30 cities........... Value of contracts awarded, 5th district.... Cotton Consumption, 5th district (Bales).. $ $ $ 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. (Tons)........ 47 901,000 8,250,505 35,023,000 356,419 10.25 7.875 31,600,000 10,000,000 41,450,000 $ $ $ 45 371,000 12,223,913 42,567,000 391,059 10.14 7.750 34,300,000 8,900,000 44,070,000 $ $ $ % Change Month Year — — + + — 13 0 11 1 7 + + + + + 21 14 26 19 39 46 584,000 7,059,770 29,605,000 319,601 + 4 +143 — 33 — 18 — 9 + + + + + 2 54 17 18 12 10.74 6.625 29,800,000 8,300,000 39,277,000 + 1 + 2 — 8 + 12 — 6 5 + 19 + 6 + 20 + 6 MONTHLY REVIEW 2 BANK ING STATISTICS RESERVE BANK STATEMENT ITEMS Fifth District 000 omited ITEMS Mar. 15 Feb. 15 Mar. 15 1941 1941 1940 Discounts held .............................................. $ 43 $ 18 $ 113 0 0 86 Foieign loans on gold................................. Industrial advances .................................... 766 769 909 Government securities ................................ 119,976______119,976_____ 125,583 Total earning assets .............................. 120,785 120,763 126,691 Circulation of Fed. Res. notes................. 291,234 284,437 221,028 Members’ reserve deposits ..................... 394,914 383,504 296,184 Cash reserves ................................................ 628,578 615,044 443,536 Reserve ratio .............................................. 84.45 83.84 78.28 SELECTED ITEMS— 41 REPORTING MEMBER BAN KS Fifth District 000 omited Mar. 13 Mar. 12 Feb. 12 ITEMS 1941 1941 1940 $115,600 $144,000 $137,300 Loans to business & agriculture........ 148,596 159,188 157,470 All other loans .......................................... 446,193 471,875 470,995 Investments in securities ..................... 195,333 273,152 256,171 Reserve bal. with F. R. b a n k ............... 27,253 22,483 26,649 Cash in vaults ............................................ 538,986 662,843 652,642 Demand deposits ........................................ 200.459 205,553 206,030 Time deposits ............................................ 0 0 0 Money borrowed ........................................ M UTUAL SAVINGS BANK DEPOSITS 10 Baltimore Banks Feb. 28 1941 $224,323,164 Total deposits J a n .31 1941 $224,189,917 DEBITS TO INDIVIDUAL ACCOUNTS Fifth District 000 omitted Jan. Feb. Feb. 1941 1941 1940 CITIES Dist. of Col. Washington . . . . Maryland Baltimore ............. Cumberland ......... Hagerstown ......... North Carolina Asheville ............... Charlotte . ........... Durham ................. Greensboro ........... Raleigh ................. Wilmington ........ Winston-Salem . . South Carolina Charleston ........... Columbia ............. Greenville ............. Spartanburg ----Virginia Danville . . . . . . . . . Lynchburg ........... Newport News . . Norfolk ................. Portsmouth ......... Richmond ............. Roanoke ............... West Virginia Charleston ........... Huntington ......... Parkersburg......... District Totals . . . F e b .29 1940 $222,888,548 % of Change Month Year $ 287,863 $ 330,742 $ 239,885 — 13 + 20 416,425 7,704 10,085 489,747 8,694 10,494 343,749 7,454 7,456 — 15 — 11 - 4 + 21 + 3 + 35 14,314 89,650 25,293 23,353 46,538 12,863 38,535 16,510 92,704 30,627 24,361 61,364 14,087 44,666 11,547 61,375 27,885 18,745 34,973 10,316 35,247 — 13 — 3 — 17 — 4 — 24 — 9 — 14 + 24 + 46 — 9 + 25 + 33 + 25 + 9 22,601 34,112 22,247 18,316 25,356 37,378 26,518 17,288 17,695 25,934 19,664 9,7 42 — 11 — 9 — 16 + 6 + + + + 8,153 14,277 13,245 64,390 5,402 157,765 29,511 8,634 17,751 14,291 71,462 6,223 180,891 33,083 7,609 13,522 11,067 45,217 3,976 140,191 25,801 — 6 — 20 — 7 — 10 — 13 — 13 — 11 + 7 + 6 + 20 + 42 . +36 + 13 + 14 55,268 46,355 15,441 19,492 : 12,040 8,290 $1,649,671 $1,189,136 — 7 — 14 — 21 — 13 + 11 + 9 + 15 + 21 51,584 16,843 9,498 $1,440,567 28 32 13 88 C O M M E R C IA L FAILURES PERIODS Number of Failures District U. S. Total Liabilities District U. S. February 1941 ..................... . January 1941 ....................... . February 1940 ..................... . 47 45 46 1,129 1,124 1,042 $ 901,000 371,000 584,000 $13,483,000 11,888,000 13,472,000 2 months, 1941 ................... . 2 months, 1940 ..................... 92 104 2,253 2,279 1,272,000 1,163,000 25,371,000 28,751,000 Source: Dun & Bradstreet E M PLO Y M E N T W ork on buildings at army camps in the Fifth district has begun to taper off, and building tradesmen are now being dropped each week. Many o f these workers will probably shift to housing projects or to private building jobs, and some o f them will return to non-construction work, especially agriculture. Industrial employment con tinues to rise steadily, both by increased activity o f old plants and the opening o f new ones. Skilled workmen o f all kinds are well employed. The following figures, compiled for the most part by the Bureau o f Labor Statis tics, show the trends o f employment and payrolls in the Fifth district from January to February: Percentage change from Jan. 1941 to Feb. 1941 In number in amount on payroll of payroll STATES ........... Dist. of Columbia .............................. ........... ........... West Virginia .................................... ........... North Carolina ............................................... South C arolina.................................... ........... District Average ........................... ........... + 1 .2 + 0 .6 + 1.4 + 1 .6 + 0 .3 + 3 .0 + 1 .1 + + + + + + + 2.4 0.4 3.3 6.1 1.6 6.6 3.6 A U TO M O B ILE RE G ISTRA TIO N S Sales o f new passenger automobiles in the Fifth R e serve district in February continued to run far ahead of last year's figures, rising 39 per cent, and cumulative sales in the first two months were 35 per cent above sales in January and February 1940. Sales o f used cars have also been in large volume in recent months, but have not kept pace with new car sales, and stocks o f used cars on dealers’ lots have consequently increased. Dealers also have relatively large stocks o f new cars on hand, but in view of the approach o f the spring season and a possi bility that manufacture o f automobiles may have to be re stricted as a part o f the defense program later in the year, stocks o f neither new nor used cars are thought to be e x cessive. Registration figures in Fifth district states for February, as reported by R. L. Polk & Co., o f Detroit, are as fo l low s: REGISTRATION OF N E W PASSENGER CARS— NUMBER Feb. Feb. % Change 1941 1940 + 41 4,200 2,986 Maryland ........... + 42 2,302 1,617 Dist. of Col. . . . 3,079 + 39 4,280* 1,824 2,198 + 21 West Virginia . . 3,644 5,098 + 40 No. Carolina . . . 2,431 + 46 3,543 So. C arolina----+ 39 Fifth District . 21,621 15,581 * *Feb. 1941 Virginia figure estimated. STATES 2 Months 2 Months 1940 1941 6,332 8,369 3,347 4,415 6,976 10,419 4,534 3,869 10,859 7,940 6,387 4,777 44,983 33,241 % Change + 32 + 32 + 49 + 17 + 37 + 34 + 35 C O N STR U C TIO N Building permit and contract award figures in the Fifth district in February declined from the January to tals, but were substantially above February 1940 figures: Permits issued last month in 30 cities totaling $8,250,505 declined 33 per cent from $12,223,913 reported for Janu ary, but were 17 per cent above the February 1940 valu ation o f $7,059,770. Washington with $2,061,545 led in February 1941 valuation, Baltimore was second with $2,030,544, High Point third with $1,382,275, Charlotte fourth with $464,962, and N orfolk fifth with $314,099. Contracts awarded for all types o f construction in the Fifth district totaled $35,023,000 in February, a decrease of 18 per cent below awards totaling $42,567,000 in Janu ary but 18 per cent above $29,605,000 in February last year. Figures on contract awards by states for January 3 MONTHLY REVIEW 1 9 4 0 , w h ic h w e r e n o t a v a ila b le w h e n la st m o n th ’ s R eview w a s c o m p ile d , are in clu d e d in th e a c c o m p a n y in g t a b l e : CONSTRUCTION CONTRACTS AWARDED STATES Maryland ............................. Dist. of Col........................... Virginia . ........................... West Virginia ................... North Carolina .................. South Carolina ............... . Fifth District ................. Jan. 1940 % Change $ 6,319,000 +117 2,529,000 +278 5,163,000 + 64 908,000 4* 85 4,009,000 4* 28 3,088,000_______ -f 29 $22,016,000 + 93 Jan. 1941 $13,715,000 9,550,000 8,475,000 1,684,000 5,149,000 3,994,000 $42,567,000 Source: F. W. Dodge Corporation. B I T U M IN O U S C O A L P R O D U C T I O N D a ily p r o d u c tio n o f b it u m in o u s co al ro se less th a n se a so n a lly in F e b r u a r y , b u t e x c e e d e d p ro d u c tio n b y 1 0 p e r ce n t. F ebru ary 1940 d a ily T r a d e re p o r ts in d ica te a sh a rp rise in o u tp u t in M a r c h , ca u sed b y s to c k in g f o r in v e n to r y a g a in s t a p o s s ib le s h u t-d o w n a f t e r A p r i l 1 w h e n th e p r e s e n t c o n tr a c t b e tw e e n th e o p e ra to r s a n d m in e r s ’ u n io n e x p ire s. S h ip m e n ts o f co al th r o u g h h H a m p t o n R o a d s f r o m January 1 th r o u g h M arch 8, 1941, to n s w e r e lo w e r th a n 4 ,9 0 3 ,6 1 1 to ta lin g The demand for rayon filament yarn continued strong during February, although shipments declined seasonally from those o f the longer month o f January. Deliveries of 31,600,000 pounds o f yarn to domestic consumers in February declined 7.9 per cent from 34,300,000 pounds shipped in January but were 6 per cent above shipments o f 29,800,000 pounds in February 1940. Production again exceeded shipments o f yarn, and consequently re serve stocks rose from 8,900,000 pounds on January 31 to 10,000,000 pounds on February 28. A year ago, on February 29, 1940, reserve stocks totaled 8,300,000 pounds. T o the present time rayon has played a very small part in the preparedness program, but there are indications that a special fabric consisting o f 50 per cent high-tenacity filament rayon yarn and 50 per cent 3-thread long-staple cotton is particularly well suited for “ jump suits” used by Parachute Battalions, and may come into extensive use in army circles. 4 ,7 1 0 ,5 7 5 C O T T O N STATISTICS to n s s h ip p e d in th e c o r r e s p o n d in g p e r io d la st y e a r , ch ie fly d u e to re d u ce d lo a d in g s f o r f o r e ig n c a r g o an d b u n k e r . I n the F i f t h d istr ic t, p r o d u c tio n o f b itu m in o u s co al in F e b r u a r y 1 9 4 1 , J a n u a r y 1 9 4 1 an d F e b r u a r y 1 9 4 0 w a s as f o l l o w s : SOFT COAL PRODUCTION REGIONS West Virginia ..................... Virginia ................................. Maryland ......... . . . , ............. 5th District ................... United States ................ % in District ............... R A Y O N SHIPMENTS A N D STOCKS Feb. 1941 10,542,000 1,355,000 152,000 12,049,000 41,450,000 29 IN TONS Jan. 1941 11,194,000 1,417,000 157,000 12,768,000 44,070,000 29 Feb. 1940 10,090,000 1,289,000 158,000 11,537,000 39,277,000 29 C O T T O N T E X T IL E S Spot cotton prices rose slowly but steadily from the middle o f February to the middle of March, middling grade 15/16-inch staple advancing on 10 Southern markets from 10.06 cents per pound on February 14 to 10.68 cents on March 14, a rise o f $3.10 per bale. The increase was due largely to strong domestic mill demand, increasing scarcity of free cotton, trade comments on possible changes in the farm program, and the rising tendency o f commodity prices. Mills are reported having difficulty in fulfilling their needs at prevailing prices, although stocks o f cotton are being repossessed from Government loans at a fairly rapid rate. COTTON CONSUMPTION AND In a su rvey m o n th th e of th e co tto n te x tile Journal o f Commerce in d u s tr y fo r last sta tes th a t d e liv e r y d iff i cu lties re d u c e d a c tiv ity in so m e se ctio n s o f th e g r a y g o o d s m a rk e ts in F e b r u a r y , b u t m ills e n la rg e d th e ir b a c k lo g s o f o r d e r s t o th e p o in t w h e r e c o n tin u a n ce o f th e p re se n t rate o f a c tiv ity is a ssu r e d in to th e late s u m m e r m o n th s . G overn m en t b u y in g fo r d e fe n s e p u rp o s e s H eavy c o n tin u e d to b u o y th e m a rk e t an d w a s re s p o n s ib le in p a rt f o r th e r e cu r re n t s h o r ta g e s o f m a n y ty p e s o f g o o d s . D em and fo r h e a v y fa b r ic s o f th e in d u stria l ty p e w a s m o r e p ro n o u n c e d th a n th e ca ll f o r a p p a r e l g o o d s . S h e e tin g s w e r e in h e a v y d e m a n d a n d p ric es a d v a n c e d sh a r p ly . M ills m a n u fa c t u r in g d rills a n d o s n a b u r g s are sold u p f o r m a n y m o n th s a n d in s o m e in sta n ce s h a v e w ith d r a w n f r o m the m a r k e t. D u c k s c o n tin u e sca rce , th e b u lk o f p ro d u c tio n b e in g ta k e n b y the G o v e r n m e n t. T h e m o n th en d e d w ith m o s t m ills o p e r a tin g o n a tw o s h if t b a sis, b u t a co n sid e r a b le n u m b e r o f m ills W ere r u n n in g th ree s h ifts . I n th e C a ro lin a s , te x t ile m ills a r e re p o r te d as o p e r a tin g at th e h ig h e s t le v e l in th e ir h is to r y , a n d d a ily c o n s u m p tio n o f c o tto n in F e b r u a r y set a re c o rd . C o n s u m p tio n fig u r e s in F ifth d istrict sta tes in Feb. Aug. 1 to Feb. 28 1940 This Year Last Year Fifth district states: 356,419 319,601 2,398,192 2,232,681 Cotton consumed ................... Cotton growing states: 565,145 4,461,271 3,994,97'< 674,204 Cotton consum ed................... Cotton on hand Feb. 28 in 1,568,923 1,432,362 Consuming establishments: Storage & compresses . . . . . . 13,701,424 12,112,957 United States : 793,626 661,771 5,220,917 4,703,707 Cotton consumed *.............. Cotton on hand Feb. 28 in 1,905.413 1,700,394 Consuming establishments . Storage & compresses . . . . . 14,038,917 12,176,733 724,729 4,916,511 60,597 746,680 Exports of cotton ............... .. 22,769,368 22,800,726 Spindles active, U. S............... SEASON S TO B A C C O SALES A ll auction tobacco markets in the Fifth district have closed for the 1940-1941 season, and total season sales are shown in the accompanying table. Gross receipts from tobacco sales were $113,681,000 for the 1940 crop, a de crease o f $48,136,000, or 30 per cent, from $161,817,000 brought by the 1939 crop, the decline being due almost entirely to voluntary restriction in the acreage planted to flue-cured tobacco in 1940 in comparison with 1939. F e b r u a r y w e r e as f o l l o w s : Sales for Growers, Pounds COTTON CONSUMPTION—FIFTH DISTRICT In bales MONTHS Virginia District February 1941 ................... January 1941 ..................... February 1940 ................... 194,637 212,132 174,359 146,331 161,911 131,419 15,451 17,016 13,823 356,419 391,059 319,601 2 Months, 1941 .................. i Months, 1940 .................. 406,769 364,658 308,242 273,973 32,467 27,575 747,478 666,206 ON H AND— BALES Feb. 1941 No. Carolina So. Carolina Price per Cwt. South Carolina ......... North Carolina ......... Virginia (Flue-cured) (Fire-cured) (Burley) (Sun-cured) Virginia, Total ......... 1940-1941 74,803,580 487,746,996 85,261,620 18,606,627 8,436,152 3,133,952 115,438,351 1939-1940 117,217,526 774,347,884 129,957,301 20,877,497 10,757,496 3,284,406 164,876,700 1940-41 $14.55 17.27 17.55 9.37 18.24 9.32 16.06 1939-40 $14.56 15.66 14.59 11.22 16.67 12.18 14.25 District, Total . . . 667,988,927 1,057,442,110 $16.77 $15.30 4 MONTHLY REVIEW T O B A C C O M A N U F A C T U R IN G RETAIL FURNITURE SALES % Change in Sales, February and 2 Months ] Production of tobacco products declined seasonally in February from January output, but was above February 1940 production because o f a 10 per cent rise in cigarettes. Production figures as released by the Bureau o f Internal Revenue are as follow s: Smoking & chewing tobacco, pounds ............... Cigarettes, number ................. Cigars, number ....................... Snuff, pounds ........................... Feb. 1941 Jan. 1941 Feb. 1940 22,150,840 14,464,626,900 385,348,833 3,051,492 25,536,138 16,286,811,310 403,166,320 3,422,102 23,712,060 13,162,661,213 375,824,394 3,144,556 STATES Compared with Feb. 1940 Maryland, 8 stores ..................... Dist. of Col., 6 stores ................ Virginia, 13 s to r e s ..................... North Carolina, 5 s to r e s ............ South Carolina, 7 stores ........... District, 39 stores ................... Individual Baltimore, 8 Richmond, 5 Washington, + 25 +24 + 31 +35 Cities: stores ..................... s to r e s ..................... . 6 stores ................. R E T A IL A N D W H O LESALE T R A D E Net Sales February 1941 compared with Feb. Jan. 1940 1941 Percentage increase or decrease in sales, stocks, outstanding orders and outstanding receivables in February 1941 in comparison with February 1940: Sales Stocks + + + + + + 9 ( + 13) + 16 ( + 14) + 15 ( + 18) + 8 ( + 12) + 14 ( + 16) +26 + 24 + 29 +24 +26 +28 +26 + 4 +24 +24 + 4 +29 W H O LESALE TRADE, 181 FIRMS DEPARTMENT STORE TRADE Richmond (5) ............. Baltimore (10) ........... Washington (7) ......... Other Cities (12) ----Fifth District (79)* . Same stores by states, including stores reporting sales only: Maryland (13) . . . . Virginia (16) ......... West Virginia (15) North Carolina (16) South Carolina (12) Compared with 2 Months 1940 Orders 7 3 6 9 6 + + + + + 7 34 41 31 33 Receivables + 9 + LINES Auto supplies (6) ......... 9 +10 +10 + 10 + 15 ( + 14) + 16 ( + 19) + 9 ( + 10) + 10 ( + 15) + 14 ( + 16) * Include stores reporting sales only. Note: Second figure in parentheses under Sales compares combined sales in 2 months of 1941 with sales in first 2 months last year. Drugs & sundries (11) Dry goods (8) ................. Electrical goods (8) . . . . Groceries (60) ............... Hardware (15) ............... Indus, supplies (11) . . . Paper & products (8) Tobacco & products (6 ). Miscellaneous (43) ......... District Average (181) + 39 + 5 + 8 + 3 + 81 + 1 + 23 + 56 + 22 + 13 +28 +19 +23 + 54 — 19 + o + 28 — 8 — 13 + 9 — 10 — 3 — 5 + 1 Stocks Ratio Feb. Feb. 28, 1941 collections compared with to accounts Feb. 28 Jan. 31 outstanding 1940 1941 Feb. 1 — 13 — 5 — 5 4-38 + 4 + 5 + 18 — 6 + + + + + + 3 6 1 4 2 5 61 35 102 41 75 89 45 76 72 + 24 + 8 + + 6 2 58 63 Source: Bureau of the Census. LIV E STOCK O N FARM S ON JA N U A R Y 1, FO R THE PAST TEN Y E A R S, W ITH T O T A L V A L U A T IO N FIGURES (All figures in thousands; i. e., 000 omitted) Horses and colts. . . Year 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 Maryland No. Value 87 $ 5,916 85 5,780 82 6,806 80 8,115 81 9,695 10,062 81 82 9,950 82 9,200 82 8,481 81 7,595 Virginia No. Value 187 $12,373 178 11,768 170 13,770 163 16,049 165 19,575 167 21,307 167 20,771 169 19,727 169 17,728 166 16,732 W est Virginia No. Value 106 $ 7,420 103 7,622 101 8,686 99 10,078 98 11,438 96 11,604 96 11,497 % 11,079 95 10,119 95 9,095 North Carolina Value No. 77 $ 5,005 72 4,824 5,862 69 6,884 67 7,960 68 69 8,675 8,603 69 8,112 70 71 7,892 72 7,397 South Carolina No. Value 25 $ 1,350 23 1,449 22 1,760 21 2,050 20 2,250 20 2,465 20 2,265 20 2,189 20 2,092 20 2,033 Fifth District No. Value 482 $ 32,064 461 31,443 444 36,884 430 43,176 432 50,918 54,113 433 434 53,086 437 50,307 437 46,312 434 42,852 Mules and colts 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 29 29 29 29 29 28 28 28 27 26 2,755 2,581 2,987 3,491 4,013 4,004 4,060 3,696 3,537 3,198 93 90 92 93 93 96 94 95 96 95 7,834 7,442 9,108 11,028 13,076 14,546 14,274 14,063 13,745 12,889 12 12 12 12 12 12 12 12 12 12 888 876 972 1,116 1,380 1,428 1,428 1,392 1,272 1,272 279 285 290 295 298 301 305 305 305 299 24,831 25,365 33,596 41,242 51,150 54,110 55,136 53,198 52,287 47,387 181 179 179 183 185 189 187 185 185 185 13,394 13,783 20,943 25,071 30.525 34,398 31,790 30,525 31,350 30,059 594 595 602 612 617 626 626 625 625 617 49,702 50,047 67,606 81,948 100,144 108,486 106,688 102,874 102,191 94,805 Cattle and calves. . 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 295 300 304 307 307 307 313 322 338 352 12,514 8,700 8,725 9,687 13,913 14,735 16,397 16,324 16,531 19,534 782 800 856 870 861 852 869 886 930 967 21,706 16,955 17,291 19,740 28,443 28,906 32,250 34,161 36,061 40,179 546 596 627 612 618 676 588 600 600 600 15,561 13,350 12,540 12,856 19,530 17,491 20,447 21,415 22,116 23,040 594 669 679 685 671 651 6.J8 664 664 684 16,157 13,575 13,399 14,624 18,225 18,813 18,896 20,716 21,438 23,184 324 351 372 386 374 374 352 359 359 366 7,679 6,844 7,031 7,327 8,131 8,834 9,322 9,731 10,259 10,636 2,541 2,706 2,838 2,860 2,831 2,760 2,760 2,831 2,891 2,969 73,257 59,424 58,986 64,234 88,242 88,779 97,312 102,347 106,405 116,573 Sheep and lambs.. 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 104 99 95 94 86 84 81 77 74 70 530 376 432 435 534 552 585 534 524 514 485 480 470 438 416 395 399 387 379 379 2,212 1,671 2,021 1,947 2,569 2,596 2,823 2,602 2,610 2,760 631 631 610 606 588 547 547 536 504 489 2,776 2,082 2,257 2,401 3,019 2,931 3,062 2,911 2,750 2,690 86 85 81 77 73 62 62 60 50 50 335 264 278 287 351 321 362 353 295 298 14 14 13 13 12 11 11 10 10 8 50 43 40 40 45 36 37 37 37 29 1,320 1,309 1,269 1,228 1,175 1,099 1,100 1,070 1,017 996 5,903 4,436 5,028 5,110 6,518 6,436 6,869 6,437 6,216 6,291 Hogs and pigs___ 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 160 180 186 159 167 184 1.91 210 235 214 1,200 882 874 1,036 1,676 1,839 1,725 1,845 1,584 1,385 551 579 585 543 597 663 663 683 717 688 3,343 2,577 2,545 3,314 5,691 6,114 5,904 5,722 4,543 4,610 176 196 188 188 197 213 209 217 221 203 1,320 1,019 • 884 1,106 1,807 1,859 1,823 1,834 1,481 1.238 954 1,096 1,005 947 966 1,111 1,111 1,155 1,167 1,097 7,346 5,590 5,822 7,241 10,255 11,523 10,994 10,833 8,358 7,967 576 600 552 509 519 550 540 583 688 605 3,283 2,820 2,705 2,917 4,425 4,828 4,635 4,633 4,512 4,008 2,417 2,651 2,516 2,346 2,446 2,721 2,714 2,848 3,028 2,807 16,492 12,888 12,830 15,614 23,854 26,163 25,081 24,867 20,478 19,208 (Compiled March 21, 1941) MONTHLY REVIEW, March 31, 1941 FEDERAL RESERVE BANK OF RICHMOND SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) INDUSTRIAL PRODUCTION Industrial activity and. em ploym ent increased fu rth er in F ebru ary and the first h a lf o f M arch. B u ying b y producers and consum ers continu ed in large volum e and w holesale com m odity prices, particu larly o f im ports, advanced. P R O D U C TIO N Federal Reserve index of physical volume of production, adjusted for seasonal variation, 193539 average=100. Subgroups shown are expressed in terms of points in the total index. By months, January 1935 to February 1941. WHOLESALE PRICES OF BASIC COMMODITIES Bureau of Labor Statistics’ indexes based on 12 foodstuffs and 16 industrial materials, August 1939 =100. Thursday figures, Jan. 3, 1935 to March 13, 1941. MONEY RATES IN NEW YORK CITY In F ebru ary volum e o f industrial output, on a daily average basis, rose m ore than seasonally, and the B oa rd’ s adju sted index advanced fr o m 139 to 141 p er cen t o f the 1935-39 average. Increases in F ebruary, as in oth er recen t months, w ere largest in the dur able g oods industries w here a large p roportion o f defen se program orders have been placed. A ctivity continued to rise sharply at m ach in ery plants, a ircra ft fa ctories, shipyards, and in the railroad equipm ent industries. Steel production fluctuated around 96 per cent o f capacity in January and F ebru ary and rose to 99 per cent in the first h alf o f M arch. N ew orders f o r steel continu ed large and, despite the high rate o f output, unfilled orders increased fu rth er. M any orders have been placed fo r delivery in the second h alf o f this year, reflectin g the prospect o f heavy consum ption and som e u ncertain ty on the part o f steel users rega rdin g fu tu re availability o f supplies. O utput o f p ig iron, coke, and n on ferrou s metals was likew ise at near capa city rates in F ebru ary and unfilled orders f o r these products, too, w ere at ex cep tion a lly high levels. D em and f o r lum ber continued large ow in g to a high rate o f construction activity and output was sustained in large volum e fo r this tim e o f year. A u tom ob ile production increased in Febru ary and the first h alf o f M arch to ab ou t the peak rate at tained last N ovem ber. Retail sales o f new and used cars advanced to unusually high levels. In industries m anu factu ring nondurable goods, activity continued at the record levels reached in the latter part o f 1940. There w ere fu rth er increases in the cotton textile, rubber, and chem ical industries and activity at w oolen mills also increased, fo llo w in g a tem porary redu ction in January. In m ost other lines activity was m aintained at the high levels o f oth er recen t months. Coal production rose less than seasonally in F ebru ary bu t increased con siderably in the first h alf o f M arch w hen, accord in g to trade reports, there was som e in ven tory accum ulation in anticipation o f a possible shutdow n on A p ril 1 at the expiration o f the presen t con tra ct betw een the m ine operators and the m iners’ union. Copper and zinc produ ction increased in F ebru ary and recen tly dom estic supplies o f copper have begun to be supplem ented by im ports from South A m erica. O utput o f crude petroleu m continued at about the rate that had prevailed during the three preced in g months. V alue o f construction con tra ct aw ards in F ebru ary declined som ewhat more than seasonally, reflectin g decreases in both public and private w ork, a ccord in g to reports o f the F. W . D odge C orporation. A w ards f o r public con struction, although sharply reduced fro m the high levels reached in the latter h alf o f 1940, w ere som ewhat above those o f a year ago, and aw ards f o r private construction w ere nearly h alf again as large as in F ebru ary o f last year. D IST R IB U T IO N Weekly averages of daily yields of 3- to 5 ■year tax-exempt Treasury notes, Treasury bonds callable after 12 years, and average discount on new issues of Treasury bills offered within week, F o r weeks ending Jan. 5, 1935 to March 15, 1941. MEMBER BANKS IN 101 LEADING CITIES D istribution o f com m odities to consum ers increased m ore than seasonally from January to February. Sales at variety stores and b y m ail-order houses w ere the largest on record, m aking allow ance f o r usual seasonal changes, and departm ent store sales w ere also at a high level. F reigh t-ca r loadings increased b y about the usual seasonal am ount. Ship ments o f m iscellaneous freigh t, consisting m ostly o f m anu factu red products, showed an increase while loadings o f fo r e s t products rose less than seasonally and grain shipments declined. W H O L E S A L E C O M M O D IT Y P R IC E S P rices o f a num ber o f basic im ports rose sharply fr o m the early part o f F ebru ary to the middle o f M arch. C otton yarns and gra y good s and n on ferrou s m etal scrap showed fu rth er increases in this period and there w ere also advances in prices o f som e other dom estic com m odities, including lead, w heat, cotton , and oils and fats. B A N K C R E D IT Com m ercial loans continued to increase at m em ber banks in 101 leading cities in F ebru ary and the first h alf o f M arch and these banks also purchased additional Treasury notes and bills issued in conn ection w ith the defen se p ro gram . A s a result o f the increase in leans and investm ents, bank deposits showed a fu rth er m arked advance. UNITED S T A T E S G O V E R N M E N T SE C U R IT Y PR IC E S Wednesday figures, Jan. 2, 1935, to March 12, 1941. Commercial loans, which include industrial and agricultural loans, represent prior to May 19, 1937, so-called “ Other Loans'’ as then reported. Prices o f G overnm ent securities increased a fte r F ebru ary 15, fo llo w in g a sharp decline in the p recedin g ten w eeks. The 1960-65 bon ds on M arch 15 w ere about 3 Vs points above their price on F ebru ary 15 and a b ou t 1 % points below the all-tim e peak o f D ecem ber 10. The yield on this issue, w hich increased from 2.03 per cent at the peak in prices on D ecem ber 10 to 2.30 p er cen t on Febru ary 15, had declined to 2.14 per cen t on M arch 15.