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MONTHLY REVI EW o f Financial and Business Conditions F if t h R eserve Federal D is t r ic t Federal Reserve Bank, Richmond, Va. March 31,1943 Business in February, 1943 ' T ' H E manpower problem is at present of greatest concern in Fifth District industries, as it probably is throughout the United States. Agriculturally this Dis trict is probably in a somewhat poorer position as regards manpower since a larger (proportion of the farm effort applied here is done with hand labor as contrasted with the relatively larger (portion of machine labor for the country as a whole. Reports are current from many quarters of the District that the dearth of farm labor is likely to cause a considerable amount of land to lie fallow, but the U. S. Department of Agricul ture's acreage estimates indicate the contrary. Indications are that further immigrations of workers will be needed during 1943 in such areas as Baltimore, Maryland, Hampton Roads, Virginia, and several of the port cities of the Carolinas. In the Hampton Roads area of Virginia the War Manpower Commission esti mates an increase in employment of 62,000 workers, of which 38,000 would have to be brought into the area from outside. Quanti tative estimates are lacking as to the number of workers required in Baltimore but it is the general impression that the number will be large. Industries indirectly engaged in the war effort, and those not engaged in it, seem likely to have to settle their manpower problems by lengthening the work week and by the further use of women. Women workers are moving into industries of this Dis trict in which it has not been customary for them to work, and the trend seems to be toward an acceleration of this move. The Bassett Furniture Industries, of Bassett, Vir ginia, is employing women in two of its five plants and the company has announced that 500 additional women will be employed at a future date. Women were also put to work operating cranes at the Bethlehem-Fair field Shipyard in Baltimore, and the Virginia Electric and Power Company has stated that women street car and bus drivers will soon appear. Average daily department store sales after seasonal correction rose 20 per cent between January and February and in the latter month stood 43 per cent ahead of the same month last year. The clothing rationing scare around the middle of February found its greatest reflection in Maryland as this state’s seasonally adjusted sales for February were 44 per cent higher than January and 52 per cent above February 1942. It is interesting to note the changes that have occurred in department stores’ cash sales in relation to charge sales payable in 30 days and to those on instalment. Twenty-three identical stores of the District in February 1943 show 54 per cent of their sales for cash whereas a year ago these stores’ cash sales were only 41 per cent of the total. Charge sales payable in 30 days accounted for 39 per cent of the total in February this year against 47 per cent a year ago while instalment sales accounted for only 7 per cent this February against 12 per cent last February. The decline in the importance of instalment sales is no doubt due to a dearth of the things ordinarily sold on instalment, while the increase in cash sales over 30 day credit sales attests the plethora of pocket cash. O f the five lines of wholesale trade carried on a season- BUSINESS INDEXES—FIFTH FEDERAL RESERVE DISTRICT Average daily 1935-1939=100 Seasonally adjusted Feb. 1943 184 154 292 27 164 236 195 Bank Debits ........................... Bituminous Coal Production.... Building Contracts Awarded... Building Permits Issued........ Cotton Consumption* ............ Department Store Sales.......... Electric Power Production... Life Insurance Sales.............. Wholesale Trade—5 lines.... *Not seasonally adjusted. 101 185 r—Revised. Jan. 1943 171r 137 196 124 155 197r 190 90 171 Dec. 1942 Feb. 1942 183 137 367 49 154 164 199 81 157 164 134 395 113 163 165 175 124 151 % Change Feb. 43 from Jan. 43 Feb. 42 4" 8 + 12 4- 49 — 78 4" 6 -f 20 4- 3 4- 12 + 8 4- 12 4- 15 — 26 — 76 4- 1 4- 43 4- 11 — 19 + 23 2 MONTHLY REVIEW ally adjusted basis February sales of hardware firms re corded the most substantial gain from January, having amounted to 28 per cent. Hardware sales at wholesale however were 13 per cent smaller in February than a year ago. Wholesale shoe sales failed by 13 per cent to main tain seasonal levels in February and stood 5 per cent be low a year ago. This was no doubt a reflection of shoe rationing which came early in the month. Although sea sonally adjusted sales of wholesale dry goods fell 10 per cent from January to February, in the latter month they were still 51 per cent ahead of last year. Some improvement occurred in the consumption of cotton by the mills of this District during February. Aver age daily consumption rose 6 per cent from January, but was only one per cent ahead of last year. Were the Dis trict’s cotton mills to continue throughout the current year one or two per cent ahead of last year, it should be considered a good record. Bituminous coal production in the District usually rises by more than seasonal proportions in a year when a new wage contract is pending. A new wage contract is in process of negotiation this year and it finds the February output 5 per cent higher than in January and 14 per cent above February 1942. These figures on an average daily basis show February 1943 to be 10 per cent above January and 13 per cent above February 1942. Fifth District cigarette production which has been ac counting for between 82 per cent and 87 per cent of the United States total in the past 12 months— was 7 per cent larger than a year ago, compared with a January increase over that month last year of 5 per cent. These figures are those on which tax is paid and do not take into account the manufacture of large numbers which are sent to our armed forces overseas. For purposes of morale, both for soldier and civilian and for use by overseas sol diers for “horse trading” purposes ample supplies of tobacco for cigarette manufacture are recognized as essen tial and it is believed in some quarters that flue cured and burley tobacco acreage allotments may be raised as a consequence. Demand deposits of 41 Reporting Member Banks in the Fifth District rose 5 per cent between February 17 and March 17 and on this latter date were 30 per cent higher than a year earlier. Total security holdings of these banks increased 3 per cent during the month ended March 17 and on this date were 82 per cent higher than a year ago. Bill holdings of these banks which have mul tiplied 20 fold during the past year accounted for the bulk of the increase in security holdings during the month ended March 17. Loans which have been declining for sometime declined one per cent further in the month pre ceding March 17 and at this time they were 24 per cent below last year. Livestock in the Fifth District The Fifth Federal Reserve District ,although not con sidered predominantly a livestock section, has kept pace with the United States as a whole in livestock production. The trend has been somewhat accelerated in the last two years because of the war effort, but in general there has been a gradual increase in the number of livestock pro duced for the last five or six years. Only in the pro duction of sheep and lambs, which has been declining steadily in this District for the past several years, has the trend been contrary to that of the United States as a whole. Income from the sale of livestock has been rising rap idly in this District. Although its share in total cash farm income (excluding government payments) dropped slightly from 17% in 1941 to 15% in 1942, nevertheless estimated income from the sale of livestock aggregated ap proximately $155 million in 1942, more than one-third higher than the Department of Agriculture's figure of $114 million in 1941 and over 75% greater than the 1939 estimate of $88 million. Most of this rise can be at tributed to the increase in income from the sale o i hogs which advanced more than twice as rapidly as the income from the sale of any other class of livestock. The sale of cattle and calves increased from 31% from 1941 to 1942 and was responsible for 33% of total livestock income in the Fifth District compared with 28% derived from hogs. The income from the sale of hogs rose 68% during the year. Income from the sale of commercial broilers, formerly excluded from Department of Agriculture estimates of live stock income, is third in importance in this District, con tributing $27 million or 18% of the total in 1942. Table 1 shows the estimated income derived from the sale of the various classes of livestock in the Fifth District in 1939, 1941, and 1942, together with the percentage in crease between prewar 1939 and 1942: Table 1 : INCOME FROM LIVESTOCK, FIFTH FEDERAL RESERVE DISTRICT (Millions of dollars) Class of Livestock Cattle and calves....... Hogs ............................. Sheep and lambs......... Commercial broilers .. TOTAL .................... 1939 31.4 23.0 4.3 1941 39.2 26.2 4.7 12.1 22.8 15.0 5.9 1942* 51.4 44.1 5.7 27.4 18.8 7.8 87.9 113.9 155.2 12.4 4.8 Percentage Increase 1942/1939 63.7 91.7 32.6 126.4 50.8 62.5 76.6 ♦Estimated. Livestock income in Virginia exceeded by far that of any other state in this District in 1942, with a total of $55 million, or a little over one-third of the Fifth District Table :2 STATE DISTRIBUTION OF LIVESTOCK INCOME BY CLASSES—1942$ (Millions of dollars) Class of Livestock Cattle and calves........ Hogs .......................... Sheep and lambs....... Commercial broilers . . TOTAL ................. Md. 7.2 6.3 0.4 Va. 18.8 14.1 2.5 8.8 10.6 4.4 1.9 29.0 5.7 3.5 55.2 W. Va. 13.1 3.2 2.6 3.0 1.9 N. C. 7.6 14.1 0.2 3.6 5.1 1.0 0.8 24.8 31.4 Fifth S. c. District 4.7 51.4 6.4 44.1 X 5.7 ? 27.4 1.4 18.8 1.7 0.6 7.8 14.8 155.2 t Less than $500,000. $ Figures in Table 2 are estimates made by Federal Reserve Bank of Richmond. aggregate. North Carolina, Maryland and West Virginia each contributed from one-fifth to one-sixth of the Dis MONTHLY REVIEW trict’s total, while South Carolina’s proportion of the total was less than 10%. Further details of the state distribution income from the sale of livestock are shown in Table 2. Hogs Important Source of Income 3 portant source of income in every state except West Vir ginia, which derived approximately 10% of her 1942 live stock income from their sale. In the Carolinas and in Maryland their importance as a source of income is neg ligible. Commercial Broilers Rising in Importance Income from the sale of hogs increased measurably in importance in each one of the states, although only in the Carolinas did it surpass income from the sale of cattle and calves. Substantially higher prices of hogs together with an increased volume of sales accounted for this rise in importance. In Virginia and the Carolinas, the sale of hogs yielded 75% and 67% more income, respectively, in 1942 than in 1941. Hog prices in the various states of this District advanced between 45% and 50% during 1942. Cattle accounted for 53% of the livestock income in the state of West Virginia in 1942, while the proportion in the other states varied between one-third and onefourth of the total. Income from the sale of cattle and calves was about 30% to 35% higher in 1942 than in 1941 in each state of the Fifth District, which was due in large part to a rise in prices of around 28% . Sheep and lambs, which contributed about 4 % to total livestock income in the District in 1942, are the least im Commercial broilers have yielded more income in Mary land than hogs in each year since 1939, and they have been the leading source of livestock income in that state for the past two years. The importance of commercial broilers has increased in all states of this District. In 1942 income from their sale was 2j4 times as great in the Fifth District as a whole as it was in 1939 and almost six times as high as it was in 1935. As has been stated previously, the annual inventory made on the first of the year showed that this District has been following the trends in livestock production for the country as a whole. The increase in slaughter cattle in the last year was more rapid in this District that it was in the United States, while the percentage rise in the number of milk cows was approximately the same here as it was in the whole country. The number of hogs, on the other hand, advanced only about two-thirds as rapidly in the last year in this District as in the entire country. LIVE STOCK ON FARMS ON JANUARY 1, FOR SELEGTED YEARS, WITH TOTAL AND UNIT VALUATION FIGURES (Figures for Number and Total Value in thousands, Unit Values Actual) Year Horses and colts . . . . . . Mules and colts ....... Cattle and ca lves....... Sheep and lambs . . . . Hogs and Pigs .......... Maryland Value No. Virginia Value No. West Virginia Value No. 71 70 71 78 80 80 $ 7,186 96 95 99 99 99 $10,032 11,079 10,119 9,495 8,440 10,108 11,772 14,063 13,745 12,603 10,921 12,817 12 12 12 11 11 11 1,158 1,392 1,272 1,166 990 1,232 27,440 34,161 36,061 38,884 49,908 66,000 582 600 600 588 586 604 423 387 379 379 371 360 2,380 2,602 2,610 2,751 3,229 4,042 629 683 717 710 710 838 4,453 5,722 4,543 4,777 7,883 14,129 Aver* 1939 1940 1941 1942 1943 82 82 82 82 79 74 $ 8,167 9,200 8,481 7,694 6,644 7,630 170 169 169 168 166 163 $17,003 19,727 17,728 16,966 14,388 16,842 100 Aver* 1939 1940 1941 1942 194-5 28 28 27 25 24 22 3,367 3,696 3,537 3,075 2;592 2,970 93 95 96 91 89 87 Aver* 1939 1940 1941 1942 1943 312 322 338 338 345 355 13,553 16,324 16,531 18,859 25,157 32,530 865 930 941 960 998 Aver* 1939 1940 1941 1942 1943 82 77 74 61 61 58 471 534 524 446 542 631 196 1,465 1,845 1,584 1,501 2,350 4,504 Aver* 1939 1940 1941 1942 1943 * Average for 1932-1941. 210 235 228 219 247 North Carolina No. Value 886 South Carolina No. Value Fifth District No. Value Unit 7,892 8,039 8,592 9,767 22 20 20 22 21 21 $ 2,065 2,189 2,092 2,245 2,3:81 2,590 445 437 437 449 445 437 $ 44,453 50,307 46,312 44,439 40,445 46,937 $100.00 115.00 106.00 99.00 91.00 107.00 296 305 305 298 298 298 43,814 53,198 52,287 47,228 49,893 54,945 183 185 185 181 181 181 26,076 30,525 31,350 29,407 30,166 34,205 612 625 625 606 603 599 86,187 102,874 102,191 93,479 94,562 106,169 141.00 165.00 164.00 154.00 157.00 177.00 17,344 21,415 22,116 22,304 28,317 37,941 652 664 664 613 644 676 17,676 20,716 21,438 20,912 28,527 39,034 348 359 359 338 355 366 8,206 9,731 10,259 9,801 13,540 19,132 2,759 2,831 2,891 2,816 2,890 2,999 84,219 102,347 106,405 110,760 145,449 194,637 30.53 36.15 36.81 39.33 50.33 64.90 557 536 531 461 447 438 2,622 2,911 2,898 2,520 3,193 3,907 69 60 50 52 51 56 315 353 295 307 382 525 11 10 20 35 37 37 25 29 43 1,142 1,070 1,017 960 836 918 5,823 6,437 6,216 6,049 7,375 9,148 6.30 7.88 9.97 208 217 1,497 1,834 1,481 1,547 2,761 4,661 1,065 1,155 1,167 1,133 1,144 1,304 8,625 10,833 8,358 8,287 14,436 22,244 578 583 3,911 4,633 4,512 4,160 6,418 9,562 2,676 2,848 3,028 2,947 2,936 3,350 19,951 24,867 20,478 20,272 33,848 55,100 7.46 8.736.76 6.84 11.53 16.45 221 235 235 289 8,112 rr 6 6 688 641 628 672 5.10 6.02 6.11 MONTHLY REVIEW 4 Virginia Forest Resources Forests have always played an important part in the economic and industrial development of Virginia. Today, in spite of the understocking of Virginia forest areas and the present reliance on second growth timber, forest in dustries still constitute an important segment of Virginia’s economy. In 1940 the wood products industries in Virginia (in cluding paper and pulp) ranked second only to textiles and kindred products in the number of wage earners em ployed and wages paid. These industries (exclusive of sawmills) employed more than 30,000 workers and paid wages totaling $26,806,000. The State Forester esti mates that an additional 19,741 wage earners were em ployed in sawmills, and in cutting and hauling activities, in 1940, and that their wages totaled $12,793,000. Thus in all forest products industries in 1940, there was an estimated total number of 51,177 wage earners, and wages paid were in excess of 39.5 million dollars, amount ing to 24 per cent of the wage earners and 20 per cent of the wages paid in all manufacturing industries. In the decade from 1930 to 1940 there was a significant increase in the economic importance of the wood products industries in Virginia, particularly the pulp and paper industry. Over this period there was an increase of 10.8 thousand wage earners, and $9.9 million in wages paid, in the wood products industries. As the following table shows, the major part of this increase is attributable to the pulp and paper industry: NUMBER OF WAGE EARNERS AND WAGES PAID IN WOOD PRODUCTS INDUSTRIES IN VIRGINIA i INDUSTRY Wood Using Industries2................. Paper & Pulp Industry.................. Total—Wood Products............... Logging & Lumbering3................... Total—Forest Industries ........... All Manufacturing Industries4... 1930_______ Wages Wage Earners Paid (000 ) $13,301 17,561 3,642 3,041 $16,943 20,602 133,312 1935_______ Wages Paid ( 000) 18,274 $10,740 5,595 5,818 $16,335 24,092 Wage Earners $123,605 150,833 $110,414 1940__________ Wage Wages Earne rs Paid ( 000 ) 23,512 $16,705 7,924 10,101 31,436 $26,806 19,741 12,793 51,177 $39,599 194,662 $184,507 __________Increase 1940/1930 Wage Wages % Earners Paid ( 000) 5,951 33.9 $ 3,404 4,883 160.6 6,459 10,834 52.6 $ 9,863 61,350 % 25.6 177.3 58.2 $60,902 1 Source—Virginia Department of Labor & Industry. Annual Report 2 Includes Planing mills, Cooperage, Boxes, Pins & brackets, Furniture, Veneers, Caskets, Excelsior, Wood preserving, Lumber and timber products. N.E.C. 3 Estimates by State Forester of wage earners and wages paid in sawmills, and in cutting and hauling activities. 4 Excludes estimates on logging and lumbering. Forest Area and Condition The total forest area in Virginia now constitutes only sixty per cent of its original extent. Forest area origin ally comprised nearly 25,000,000 acres; it now comprises 14,832,000 acres. Of this total forest area, commercial forests occupy 14,412,000 acres, 56 per cent of the total land area in Virginia. The condition of this commercial forest area is shown below: Table II (In thousands of acres) Commercial Forest . ......................... Sawtimber ........... .......................... ......................... Restocking ......... ......................... Area % 14,412 7,155 6,553 704 100.0 49.6 45.5 4.9 Source: U. S. Forest Service In connection with the condition of this forest area, it should be noted that only 2 per cent is old growth and 98 per cent second growth, indicating the virtual disappear ance of old growth forests in the state. Sawtimber The total net board foot volume of sawtimber in Vir ginia is estimated at 24.3 billion board feet, consisting of hardwoods and softwoods in about equal proportions, hardwoods amounting to 12.0 billion board feet and soft woods 12.3 billion board feet. The major softwood species in Virginia are the yellow pines (Loblolly, Shortleaf, and Virginia) and white pine. In percentage of the total net board foot volume of saw timber, 29 per cent is Loblolly pine, 11 per cent Short leaf pine, 6 per cent Virginia pine, 2 per cent White pine, 2 per cent all other softwoods. The major hardwood species are the oaks, gums, yellowpoplar. In board foot volume, Oaks account for 24 per cent of all sawtimber, the Gums 8 per cent, Yellowpoplar 8 per cent, all other hardwoods 10 per cent. Other characteristics of the sawtimber stands in Vir ginia are particularly significant, such as the fact that (a) most of the sawtimber volume is in trees of small diameter, under 20 inches, and (b) many of the saw timber stands are understocked; 47 per cent of the total sawtimber area bears stands of less than 2,000 board feet per acre. Decline in Forest Resources— Drain and Growth Factors Virginia has been no exception to the common policy in earlier days of the exploitation and utilization of forest re sources without regard to future use. As a result, hun dreds of thousands of acres of forest lands have been rendered unproductive. The chief factors contributing to the devastation of a part of Virginia’s forest resources have been twofold— inadequate application of forestry principles with regard to cutting, and inadequate protec tion from fire. Underlying these immediate causal fac tors is the incidence of ownership of forest lands in Vir ginia. About ninety per cent of the forest area in Vir ginia is privately owned. With regard to fire protection, 80 of the 100 counties in Virginia are organized for fire control; the forest area MONTHLY REVIEW protected is 11,095,823 acres, or 75 per cent of the total forest area. While this coverage is fairly extensive, it is not as intensive as in other states. Virginia ranks 45th among the states in expenditure per acre for forest fire control. As to cutting practices, the Virginia State Forester has estimated that only 3 per cent of the privately owned forest land in the state is handled on a sustained yield basis— i. e., the cut of trees kept in balance with the growth. Only 35 per cent of the private forest land has been left in a reasonably productive condition after log ging operations. About 30 per cent has been cut without any regard for the future, and no information is available on the remaining 32 per cent. Even more important than the devastation of original forests is the question of future growth. At present Vir ginia's greatest forest asset is the growing power of its forest lands under the favorable climatic conditions such as the long growing seasons, abundance of rainfall, varied topography, and productive forest soils. Analysis of this growing power involves the question of the balance be tween growth and drain, not only in quantity but also quality of timber supplies. The quantity of timber supply in Virginia appears fav orable from the standpoint of the over-all relation of growth and drain. For the state as a whole, the U. S. Forest Service reports (a) the total volume of growing stock increased in 1940; (b) in spite of increased cutting, indications are that the growing stock increased in volume in 1941; (c) that there was probably a further net in crease in 1942: 5 Table III GROWTH AND COMMODITY DRAIN IN RELATION TO FOREST GROWING STOCK—VIRGINIA 1940 (In million board feet) CornGrowing Net modity Net Growing Stock Growth Drain Change Stock Species & Region Jan. 1, 1940 Jan. 1, '41 Softwoods: Virginia Coastal Plain Virginia Piedm ont....... Virginia Mountains . . . . Total . Hardwoods Virginia Coastal Plain.. Virginia Piedmont . . . . Virginia Mountains . . . Total All Species—All Regions.. 7,919.2 3,134.4 1,212.5 12,266.1 512.9 292.9 57.9 863.7 501.3 321.7 50.5 873.5 3,828.8 235.7 104.6 4,3!64.6 331.6 146.8 3,736.6 180.3 161.0 11,930.0 747.6 412.4 24,196.1 1,611.3 1,285.9 + 11.6 - 28.8 + 7.4 - 9.8 7,930.8 3,105.6 1,219.9 12,256.3 + 131.1 3,959.9 h184.8 4,549.4 - 19.3 3,755.9 -335.2 12,265.2 + 325.4 24,521.5 Source: U. S. Forest Service While the total sawtimber growing stock increased 325.4 million board feet in 1940, most of this increase was in the oaks or gums— yellowpoplar species. The situation with regard to quality, and even quantity in certain re gions of other species is not as favorable as the overall figures indicate. As already pointed out, the most important species in Virginia is the yellow pine. Nearly 60 per cent of the cut in 1940 consisted of the yellow pines, and about fourfifths of that cut from this species group was from lob lolly and shortleaf. As a result there was a significant net increment of drain over growth of shortleaf and lob lolly pine, particularly in the Piedmont region. Also, in all regions, there were significant declines in the larger diameter softwoods, presaging the development of a less satisfactory sawtimber stand. ANALYSIS OF NET CHANGE IN FOREST GROWING STOCK—VA., 1910 (In millions of bd. ft.) Region & Diameter Group Shortleaf & Loblolly Pine Virginia Pine Other Softwoods All Softwoods Oaks GumsOther All All Yellowpoplar Hardwoods Hardwoods Species All diameters: Coastal Plain ................................. Piedmont ........................................ Mountains ...................................... — f- 21.6 —73.7 + 6 .2 — 4.0 +44.5 + 7 .9 — 6.0 + 0.4 6.7 _ + 11.6 —28.8 + 7 .4 -f- 30.9 + 80.5 4.4 -y 63.8 + 62.0 + 9.9 -j-36.4 +42.3 +13.8 +131.1 +1.84.8 + 19.3 +142.7 +156.0 + 26.7 All Regions: 10-12 inches ................................... 14-18 inches ............................... 20 & over ...................................... Total ............................................ —28.2 +23.2 —40.9 —45.9 +42.4 + 6.1 — 0.1 +48.4 + 1.8 — 5.7 — 8.4 -1 2 .3 +16.0 +23.6 —49.4 — 9.8 ........ + 85.0 + 21.1 +107.0 ... +108.0 + 27.7 +135.7 +60.2 +32.3 +92.5 .... +254.1 + 81.1 +335.2 + 16.0 +277.7 + 31.7 +325.4 Source: U. S. Forest Service In the Piedmont there was a decline of 73.7 million board feet in shortleaf and loblolly pine, or 2.4 per cent Table V Possible changes in volume and distribution of the shortleaf and loblolly pine growing stock in the Virginia Piedmont at two levels of commodity drain over a 30-year period Growing stock change 1940 to 1970 Growing Diameter Drain at 15 stock 1940 class per cent below Drain at 1940 level 1940 level Million Per Cent Per Cent cu. ft. Inches + 63 + 50 282 6-8 — 14 + 37 283 10-12 + 16 — 100 113 14-16 — 100 —100 18 20 and over — 4 + 41 696 Total Source: U. S. Forest Service of the growing stock of softwoods in that area. Con tinuance of the 1940 rate of drain in this area would mean the disappearance of all trees of the foregoing varieties above 13 inches within 30 years— leaving only small sawtimber trees and cordwood trees; in other words, primarily a pulpwood stand. With regard to future timber supply, conclusion then may be reached that the over-all growth is sufficient to offset the drain even under abnormal wartime demands, but that quality in size and species is being sacrificed, raising a problem of future utilization. Lumber Production and other Industrial Use From 1870 until the early 1900’s Virginia utilized its forest resources at a more rapid rate than the rest of the country. As a result of this exploitation and consequent decline in forest resources, lumber production in Virginia dropped steadily over the 30-year period from 1909 through 1939. While lumber production for the United MONTHLY REVIEW 6 States as a whole remained fairly steady from 1909 to 1929, lumber production in Virginia dropped from a peak of 2.1 billion board feet in 1909 to 200 million board feet in 1932. Although under the stimulus of war-time de mand, lumber production in Virginia increased to more than one billion board feet in 1940 and 1941, this was still only about half that produced in the peak year 1909. Also reflecting the decrease in quantity and quality of sawtimber, production is now characterized by numerous small units working in the less accessible tracts or in second-growth timber. In 1940 there were 2,762 saw mills in operation. According to the U. S. Forest Serv ice, 97 per cent of these mills, sawing almost three-fourths of the lumber, were of the small portable type of less than 10,000 board feet daily capacity. In addition to the sawmills, other primary forest prod ucts industries in Virginia include pulp mills, cooperage mills, veneer plants, excelsior plants, tanning extract plants, and numerous miscellaneous plants such as handle plants, wood turning plants, insulator pin plants, shingle mills, etc. Table VI VOLUME OF WOOD PROCESSED IN VIRGINIA BY THE PRIMARY FOREST PRODUCTS INDUSTRIES, 1940 No. Production or Product Plants Consumption Lumber ................ ....................... 2,762 1,072,500 M. bd. f t. Veneer .................. ....................... 15 37,100 “ Cooperage ..................................... 69 107,200 Cords Pulpwood...................................... ................9 834,3'00 “ Excelsior ...................................... 20 42,700 “ Tanning extract ..........................................9 106,300 “ Miscellaneous* .................... . 34 34,300 “ Mine timbers ............................... ............... . . 101,700 “ .. 3,897,100 “ Fuel w o o d .................................... Fence posts ................................. .. 113,300 “ Poles and piles............................ .. 128,000 Pieces Hewn crossties............................. .. 533,000 “ * Includes 13 handle plants, 5 wood-turning plants, 5 insulator pin plants, 3 shingle mills, 1 dimension stock plant, 2 box plants, 1 picker stick plant, 1 wooden utensil plant, 1 mine wedge plant, 1 shuttle block plant, and 1 cedar chest plant. The present and probable trend of forest utilization in Virginia indicates that its forest resources may be of even greater importance than hitherto. Today, under the pres sure of war-time needs, Virginia’s forests are supplying wood for use in truck bodies, airplane veneer, ship tim bers, and other specialized war products. Also, Virginia is now producing over 400,000 tons of woodpulp annual ly, ten times the amount produced in 1909. With in creasing demand for woodpulp in the manufacture of rayon, plastics, cellophane, artificial wool, film, lacquers, and many other products, the post-war demand on Vir ginia forest resources is not capable of prediction. How ever, it is safe to conclude that, if care is taken of the growing stock to ensure a reasonable balance between growth and drain, as indicated,* not only over-all but also of species and size, Virginia forest resources will permit the continuance or expansion of their contribu tion to the economic well-being of the Commonwealth. DEBITS TO INDIVIDUAL ACCOUNTS 000 omitted Feb. 1943 % change from Feb. 1942 2 Mos. 1943 % change from 2 Mos. 1942 Dist. of Columbia Washington .., $ 390,140 $ 808,667 + 4 + 1 Maryland 1,198,412 + 13 + 16 Baltimore . . . . 600,029 19,223 0 9,198 Cumberland .. + 6 9,094* Frederick 17,346* — io Hagerstown .. 12,338 25,751 —*3 North Carolina 0 Asheville . . . . . 37,004 16,347 + 5 + 12 103,143 Charlotte ....... 218,079 + 15 Durham ......... + 31 88,718 + 26 39,357 — 4 Greensboro . .. 24,839 — 6 52,628 11,276* Kinston ......... 4,728* Raleigh ......... —23 42,499 —25 96,551 Wilmington . . 64,456 + 43 31,925 + 48 Wilson ........... 6,469* 13,696* Winston-Salem 54,589 + 10 113,672 + *7 South Carolina Charleston . . . . 35,079 + 23 73,811 + 21 48,081 + 28 Columbia . 102,449 + 26 Greenville . . . . 32,539 69,752 + 7 + 4 Spartanburg 19,154 + 25 39,043! + 17 Virginia Charlottesville 8,867* 19,796* Danville ....... 12,298 + 2.2 25,688 + 17 Lynchburg .. . 16,469 0 34,737 — 5 Newport News 20,928 + 56 41,659 + 47 Norfolk ......... 92,949 + 21 + 17 195,696 10,997 + 31 Portsmouth 23,079 + 32 238,394 Richmond ____ + 20 502,265 + 20 Roanoke ....... 63,122 — 5 28,667 — 5 West Virginia Bluefield ........... ....... 16,654* .. 34,926* Charleston................. 59,510 - 2 127,437 0 Clarksburg ............... 11,252* .. 24,063* Huntington ............. 24,090 + 19 50,947 + 16 + 6 Parkersburg ........................12,625______ +15________ 25,686 District Totals ............. $1,976,184 +12 §4,098,532 +10 * Figures not included in District Totals. FEDERAL RESERVE BANK OF RICHMOND (In Thousands) March 17, ITEMS c/o Change 1943 2-17-43 Total Gold Reserves............. $1,026,452 0 Other Reserves .................... . 27,182 + 28 Total ReseWes ................ . 1,053,634 + 1 Bills Discounted .................. 108 — 45 564 — 4 Industrial Advances ........... . Gov’t. Securities, Total......... 348,798 + 11 Bonds ................................. . 132,750 — 12 Notes ................................. 62,745 — 17 Certificates .................. . 110,937 + 128 Bills ....... ........................... + 9 42,366 Total Bills & Securities 349,470 + 11 Uncollected Items ............... 154,058 + 31 Other Assets ........................ 16,167 — 17 Total Assets ....................... $1,573,329 + 5 Fed. Res. Notes in Cir. $ 810,910 + 2: Deposits, Total .................... 612,022 + 4 Members’ Reserves . . . . . . 570,069 + .7. U. S. Treas. Gen. Ac....... ", 529 — 96 Foreign ............................. 31,186 + 4 Other Deposits ................. 10,238 + 10 Deferred Availability Items 132,050 + 38 Other Liabilities ................ 710 + 58 . Capital Accounts ................ 17,637 + 3 Total Liabilities ............... $1,573,329 + 5 from 3-18-42 + 32 + 23 + 32 — 24 + 159 + 43 + 52 + + + + + + + 158 29 83 48 82 26 27 4- 3 — 3 + 264 + 17 + 111 + 9 + 48 CASH FARM INCOME *See Tables III, IV , and V. This article was based chiefly on the following sources: U. S. Forest Service, Virginia's Forests, 1942. Yearbook o f Agriculture and Statistical Abstract, se lected years. Virginia State Forester, report on M ajor Forest P rob lems, 1942. Department of Commerce, Census o f Forest Products, 1941. (000 omitted) January 1943 Maryland ............... .................. .................. West V irg in ia ....... .................. North Carolina .................. South Carolina ___ .................. Fifth District ... ............... . . $ 7,703 17,314 4,564 19,780 7,096 $56,457 % Change from Jan.1942 + + + + + + 21 31 31 62 24 38 MONTHLY REVIEW MUTUAL SAVINGS BANK DEPOSITS 9 Baltimore Banks Feb. 28, 1943' Jan. 31, 1943 Total deposits ____ $234,977,978 $233,596,216 7 SOFT COAL PRODUCTION IN THOUSANDS OF TONS Feb. 28, 1942 $219,747,815 41 REPORTING MEMBER BANKS—5th DISTRICT (In Thousands) % Change From March 17, ITEMS 3-18-42 1943 2-17-43 _ 24 $ 261,185 — 1 Total Loans ........................................ — 25 Bus. & Agric. Loans....................... — 1 126,206 — 1 Real Estate Loans.......................... 51,480 0 All Other Loans ............................. 83,499 — 44 0 82 Total Security Holdings........................ $1,062,162 + 3 + + 1,935 140,169 + 15 U. S. Treas. Bills ............................ 131,894 IT. S. Treas. Certificates .................. + 3 66 130,922 0 U. S. Treas. Notes ........................... + 538,493 62 U. S. Gov. Bonds ........................... . + 1 + 54,677 46 Obligations Gov. Guaranteed........... 0 Other Bonds, Stocks & Sec.............. — 2 0 66,007 $ 85,792 19 Cash Items in Process of Col............ . + 9 + 21 Due From Banks................................... $ 194,346* + 12* Currency & Coin................................. $ 34,118 17 + 6 + $ 339,751 Reserve with F. R. Bank.................. 18 + + 9 $ 60,380 28 Other Assets ...................................... + 2 + $2,037,734 27 Total Assets ...................................... . + 4 + $1,635,211 30 Total Demand Deposits....................... + 5 + 1,008,221 Deposits of individuals...................... 44 + 6 + 61,805 —23 26 Deposits of U. S. Gov..................... + 93,057 13 Deposits of State & Local Gov....... + + 1 Deposits of Banks ............................ 443,337* + 5* 11 + 28,791 Certified & Officers’ Checks............. + 80 20 + $ 215,991 — 2 Total Time Deposits............................. 5 + 208,783 0 6 Deposits of individuals.................... + Other Time Deposits......................... 13,503 - 1 33 + Liabilities for Borrowed Money......... $ 0 0 0 $ 73,176 All Other Liabilities........................... 60 + 10 + $ 107,061 Capital Accounts ................ ............... 4 + 1 + $2,037,734 Total Liabilities ................................... 27 + 4 + * Net figures, reciprocal balances being eliminated. CONSTRUCTION CONTRACTS AWARDED % Change From STATES January 1943 Jan. 1942 Maryland ....... .......................... $ 7,247,000 —25 Dist. of Columbia........................ 2,980,000 —51 Virginia ..................................... 17,139,000 +31 West Virginia ........................... 536,000 —96 North Carolina .......................... 8,731,000 +78 South Carolina ................................... 5,654,000_____ ____ + 5_____ Fifth District ........................ $42,287,000 —19 % Change 2 Mos. % Change REGIONS Feb. 1943 from Feb. 19421943 from 2 Mos. 1942 West V irg in ia ......... 12,959 +15 25,266 + 7 1,692 +21 3,294 + 5 Virginia .................. Maryland ................. 143 — 9 268 —18 5th District ......... 14,794 +15 28,828 + 6 United States ___ 48,920 +10 96,730 + 4 % in District......... 30 .. 30 COTTON CONSUMPTION AND ON HAND—BALES Feb. Feb. 1942 1943 Fifth district states: Cotton consumed ......... 423,126 419,480 Cotton growing states: Cotton consumed , ........... 761,949 757,326 Cotton on hand Feb. 28 in Consuming establishments 2,137,547 2,099,883 Storage & compresses.. . 12,100,722 11,822,141 United States: Cotton consumed ............. 878,154 892,288 Cotton on hand Feb. 28 in Consuming establishments 2,528,515 2,582,393 Storage & compresses___ 12,373,506 12,211,947 Spindles active ...................... 22,859,160 23,087,626 Aug. 1 to Feb. 28 This Year Last Year 3,088,832 2,930,429 5,637,107 5,341,124 6,505,910 6,283,012 RETAIL FURNITURE SALES Percentage Changes in February and 2 Months 1943 STATES Compared with Compared with February 1942 2 Months 1942 Maryland (5)* ......................... — 31 -3 1 Dist. of Col. ( 6) * .................... — 19 —21 Virginia (30)* ....................... — 8 — 9 West Virginia (11)* ............. . — 10 — 12 North Carolina (2 5 )* ............. + 6 + 2 South Carolina (19)*............. . — 5 — 8 District (96)* ...................... — 14 — 16 Individual Cities Baltimore, Md. (5)* .............. -3 1 —31 Washington, D. C. ( 6 )* ........... — 19 —21 Danville, Va. (3)* .................. —22 — 6 Richmond, Va. ( 8)* .............. — 1 + 7 Charleston, V/. Va. (3)*....... — 6 — 9 Charlotte, N. C. (5)*............... — 8 + 1 Winston-Salem, N. C. (3 )* ... — 14 — 10 Columbia, S. C. (5)*............... —20 — 19 Greenwood, S. C. (3)*........... + 13 + 21 * Number of reporting stores. Source: F. W. Dodge Corporation COTTON CONSUMPTION—FIFTH DISTRICT In Bales MONTHS No. Carolina So. Carolina Virginia February 1943 ......... . . 228,060 173,336 21,770 January 1943................ 232,156 182,090 20,842 February 1942................ 226,405 172,699 20,376 2 Months 1943................ 460,216 355,426 42,612 2 Months 1942................. 464,530 356,817 42,452 COMMERCIAL FAILURES Number of FailuresTotal Liabilities PERIODS District U. S. District February 1943................ 4 422 $ 62,000 January 1943................ 11 458 98,000 February 1942................ 31 916 275,000 2 Months 1943................ 15 880 160,000 2 Months 1942................ 68 1,878 586,000 District 423,166 435,088 419,480 858,254 863,799 U. S. $ 4,163,000 5,515,000 9,631,000 9,678,000 19,547,000 DEPARTMENT STORE TRADE Richmond Baltimore Washington Other Cities District Change in February 1943 sales in comparison with sales in Feb. 1942: + 51 +51 +23 +50 +38 Change in 2 Months sales, 1943, compared with 2 Months in 1942: + 30 +23 + 8 +27 +18 Change in stocks on Feb. 28, 1943, compared with stocks on Feb. 28, 1942: + 3 -7 - 8 —14 -7 Change in outstanding orders on Feb. 28, 1943, compVd with Feb. 28, *42: + 58 +19 +26 +68 +29 Change in total receivables on Feb. 28, 1943, comp’r’d with Ftb. 28, *42: —31 —31 —40 —35 — 36 Percentage of current rec’v’bles as of Feb. 1, 1943 collected in Feb.: 55(34) 58(38) 61(41) 58(37) 59(39) Percentage of instalment receivables as of Feb. 1, 1943 collected in Feb.: 23(16) 30(20) 22(15) 22(16) 24(17) Note: 1942 collection percentages in parentheses. Maryland Dist. of Col. Virginia West Va. No. Carolina So. Carolina Percentage change in Feb. 1943 sales over Feb. 1942 sales, by States: + 50 +23 +47 +30 +47 +55 Change in 2 Months sales, 1943!, compared with 2 Months in 1942: + 24 + 8 +26 +10 +27 +41 MONTHLY REVIEW 8 WHOLESALE TRADE, 235 Net Sales February 1943 LINES compared with Jan. Feb. 1942 1943 — 35 Auto supplies (11)*......... + 8 + 33 Shoes (3)* ...................... — 13 Drugs & sundries (7 )* .... + 18 7 — 5 + 43 Dry goods (7)*.................. Electrical goods ( 8 ) * ......... + 21 + 31 + 15 Groceries (83)* ................ + 3 — 10 Hardware (13)* ............. + 8 — 12 7 Industrial supplies (7)* .. — 14 Paper & products (9 )* .... — 22 + 49 Tobacco & products (5)*.. + 18 _ 4 Miscellaneous (82)*........... + 6 District Average (235)* + 5 + 7 BUILDING PERMIT FIGURES February 1943 February 1942 FIRMS Stocks Ratio Feb. Feb. 28, 1943 collections compared with to acc’ts Feb. 28 Jan. 31 outstand’g 1942 1943 Feb. 1 84 - so + 1 8 — *2 — 1 + 2 — 1 + 3 — 4 ii9 69 47 132 81 87 65 - 30 — 27 0 0 si 83 — — — — — 30 35 9 44 24 Maryland Baltimore ....... ......... Cumberland . . . . ......... Frederick ......... ......... Hagerstown ... ......... Salisbury ......... ......... Virginia Danville ........... ......... Lynchburg . . . . ......... N orfolk ............. ......... Petersburg . . . . ......... Portsmouth . . . . ......... Richmond......... ......... Roanoke ........... ......... West Virginia Charleston ....... Clarksburg . . . . ......... Huntington . . . . ......... North Carolina Asheville ......... ......... Charlotte ......... Durham ........... ......... Greensboro . . . . ......... High Point . . . . ......... R aleigh............. ......... Rocky Mount , . ....... Salisbury ......... ......... W inston-Salem ......... South Carolina Charleston ....... ......... Columbia ......... ......... Greenville ....... ......... Spartanburg . . . ......... Dist. of Columbia Washington . . . . ......... Source: Department of Commerce * Number of reporting firms. TOBACCO MANUFACTURING % Change 2 Mos. From 2 1943 Mos. 1942 % Change From Feb. 1943 Feb. 1942 Smoking & chewing to bacco (Thousands of lbs.) Cigarettes (Thousands) .. Cigars (Thousands) ......... Snuff (Thousands of lbs.) 18,687 17,677,888 410,599 4,003 —12 4- 6 — 7 +23 40,398 38,048,102 847,343 7,589 — 11 + 5 — 6 + 6 Rayon Staple Rayon Staple Yarn Fiber Yarn Fiber Shipments, Lbs... . . . . Shipments, Lbs... . . . . Stocks, Lbs........... Stocks, Lbs........... ---- $ 1,327,818 11,900 7,055 116,422 8,825 $ $ 83,833 59,415 1,882,020 9,300 61,790 516,304 18,299 $ 225,352 26,750 111,812 8,422 6,829 239,380 3,200 5,715 225,801 9,834 185 2,190 District Totals 2 Months ............. ......... RAYON YARN DATA $ 396,228 1,450 16,850 89,050 5,139 $ 2,946 30,261 6,943 20,289 7,577 260 975 11,140 64,165 $ 14,675 94,065 157,740 69,098 46,699 247,175 14,500 10,480 152,953 $ 49,102 6,680 33,749 9,942 $ 697,349 44,755 68,916 62,775 $ 572,701 $ 1,701,875 $1,838,180 $8,668,530 $ 7,849,950 $14,589,881 Feb. 1943 Jan. 1943 Feb. 1942 38,700,000 37,900,000 36,000,000 12,500,000 12,700,000 11,300,000 7,400,000 8,900,000 4,400,000 2,500,000 3,000,000 2, 100,000 Source : Rayon Organon BUSINESS INDEXES » FIFTH FEDERAL RESERVE DISTRICT _________ (1935-39=100) ADJUSTED__________________ _____________________ NOT ADJUSTED___________ January 1943 Change from Last Last Mo. Year % Jan. 1943 Dec. 1942 Nov. 1942 Jan. 1942 190 90 137r 196r 124 155 206 183 164 199 81 137 367 49 154 252 184 193 193 84 139 437 43 161 169 164 591 154 180 138 154 128 290 153 182 175 182 133 241 123 153 151 157 247 152 147 150 150 173 141 BANK DEBITS .................................. DEPT. STORE SALES....................... ELECTRIC POWER PROD................ LIFE INS. SALES............................... BITUMINOUS COAL PROD............ . . BUILDING CONTRACTS ................ . .. BUILDING PERMITS ...................... COTTON CONSUMPTION ............. FURNITURE ORDERS .................. 201 FURNITURE SHIPMENTS ............ 578 FURN. UNFILLED ORDERS......... .. 171 WHOLESALE TR. 5 LINES........... . , . 181 224 Dry G oods................................ 172 Groceries ........................................ 125 Hardware ........................................ 230 Shoes ................................................ r—Revised 208 634 157 162 116 160 114 440 7 + 20 5 + 11 0 - 47 + :153 + 1 - 18 3 9 + 9 + 12 + 93 + 8 + 10 - 48 + 12 + 8 + 9 - 51 + 3 - 19 + 1 + 1 + 36 + 28 + :134 + 13 + 23 + 49 + 15 — 28 + 63 January 1943 Change from Last Last Year Mo. % Jan. 1943 Dec. 1942 Nov. 1942 Jan. 1942 175r 134r 211 200 200 85 136r 172 95 164 235 170 597 160 195 172 161 124 174 94 137 349 36 169 159 157 481 147 171 179 203 190 85 140 377 38 163 161 156 509 150 177 173 148 126 163 128 184 171 138 94 168 179 138 266 148 164 119 146 178 200 111 304 102 155 104 170 212 - 17 56 - 10 - 0 - 7 5 9 50 - 19 + + + 1 51 + 164 3 + 48 + 8 + 24 + 9 + 14 + 69 + 4 + 19 + 2 1 - + 1 2 + 31 23 :124 + + + + + + 8 19 45 10 30 + 57 _
@FedFRASER