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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.