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MONTHLY

REVI EW

o f Financial and Business Conditions

F i f th
F ederal

Reserve
Distr ic t

Federal Reserve Bank, Richmond 13, Va.
TWTARCH has been unseasonably warm in the Fifth
District area, and as a consequence has advanced the
budding o f fruit trees. Chances are less than even that
the last killing frost has been seen this season, and it is
therefore probable that the District’s fruit crops will be
smaller this year than last year. Although income from
fruit crops accounts for only a small part o f the District’s
farm income, it is nevertheless all important in several
areas. In 1944 fruit crops yielded over $64 million in­
come to the District’s growers compared with $34 million
in 1943, and $36 million in 1942.
Farm preparations for the coming season
are somewhat belated. Ordinarily at this time
o f the year this would not be o f great concern
and would probably be made up later on. W ith
existing short manpower supplies, however, a
lick missed at any stage o f this season will
most likely never be struck. Favorable cli­
matic conditions and maximum efforts on the
part o f farmers have combined to produce
yields per acre well above those customary in
this District for the past several years. The chances o f
maintaining both indefinitely should not be expected.
Cash farm income from crops, which has accounted for
a little under two-thirds o f total cash farm income in re­
cent years, approached the billion dollar mark last year
to set a new high record. The $954,586,000 crop income
in 1944 was $218,181,000, or 30 per cent, higher than in
1943, with cotton and tobacco accounting for $185,501,000,
or 85 per cent, o f the increase. It is permissible under
the acreage allotment plan to increase tobacco acreage
considerably this year, but it is doubtful whether there
will be enough workers on hand to plant full allotments.

March 31, 1945
Tobacco farmers have expressed their intentions o f in­
creasing acreage from two to three per cent, but even this
amount may not be accomplished without slightling other
crops.
The dearth o f farm labor and its high cost, together
with the relatively low price o f cotton, appears to be hav­
ing its effect on the coming cotton crop. Cotton acreage
intentions for the Nation, according to the New Y ork
Journal o f Commerce, point to 7.2 per cent fewer acres
this year than were planted last year, with indications that
North Carolina acreage will be reduced 9.8 per cent and
that o f South Carolina reduced 9.4 per cent.
Early preparation for cotton planting has been
delayed as much as two to three weeks. Fur­
thermore, a mild winter such as has just passed
is conducive to large boll-weavil emergence.
Reduced acreage, higher boll weavil activity,
short labor supply will require a sizable offset
by an optimum growing season to hold cotton
production as high as last year.
The N avy’s warship construction program is
being expanded by 84 new vessels which would seem to
indicate a continuance o f operations well beyond the cur­
rent year at as full a level as manpower supplies will per­
mit, at the N orfolk and Charleston Navy Yards, as well
as at the Newport News Shipbuilding and Dry Dock
Company. The Merchant shipbuilding program, however,
will be terminated by the end o f the current year, ac­
cording to present plans. It is probable that many o f the
workers now engaged in merchant ship production can
find employment in the yards o f the District working on
naval construction. Although employment levels at mer­
chant shipyards are well below those o f a year ago, com-

BUSINESS IN D E X ES— FIFTH FEDERAL RESERVE DISTRICT
Average Daily 1935-39 = 100
Seasonally Adjusted
Feb.
1945
Bank Debits ...............................
Bituminous Coal Production*
Building Contracts Awarded ...
Building Permits Issued ..........
Cigarette Production ................
Cotton Consumption* ..............
Department Store Sales ...........
Department Store Stocks .......
Life Insurance Sales .................
Wholesale Trade— Four Lines
Retail Furniture Sales ..............


* Not seasonally adjusted.


221

139
76
25
149
149
251
172
146
189
145

Jan.
1945
209
139
103
64
138r
145
238
178
140
198
157

Dec.
1944
231
118
96
42
155
133
208
162
120

177
167

Feb.
1944
212

149
122

23
153
151
209
176
128
181
116

Feb. 1945 from
Jan. ’45
Feb. ’44
+ 6
+ 4
0
— 7
— 26
— 38
— 61
+ 9
— 3
+ 8
— 1
+ 3
+ 20
+ 5
— 3
— 2
+ 4
+ 14
5
4- 4
— 8
-f 25

2

MONTHLY REVIEW

pletion of contracts should materially ease the manpower
tension. It would not be realistic, however, to expect that
many released shipyard workers would seek employment
in the cotton textile industry or in the bituminous mines
while better paying jobs are still available.
Western Virginia is still the preferred location for the
rayon industry, which is probably due to its water supply,
normal labor reserve, and to a central location between
the northern and southern textile factories. The new
plant of the Viscose Corporation to be built after the war
will be located in Pulaski County, across the river from
R adford, Virginia, and will employ 1,000 workers. It
will not only add an additional unit of the industry to
Virginia, but will materially aid in preventing Radford
from becoming a ghost town.
The cotton textile output o f the District as measured
by average daily cotton consumption gives further evi
dence of having stabilized. In fact, the February figure
would seem to point to moderate improvement, but an
early spring rise has occurred in the past two years, only
to give way to further declines later on. This has, no
doubt, been caused by off-season employment o f farmers
in the mills. Even though these workers return to the
farms next month, it seems quite likely that the bulk of
the regular workers will be held by the mills during the
current year, because the manpower situation overall has
about stabilized in mill regions except for turnover from
one mill to another. Furthermore, it is not likely that
many textile workers will be moving into war industries,
remotely located from their homes, at this late stage of
the war. There are some conflicting factors in the offing,
however, which at present remain indeterminate. If it
became evident that the war would be brought to an early
conclusion, labor turnover and absenteeism would probably
be materially lowered among those who considered them­
selves a part of the permanent labor force, while those
who consider themselves temporary employees might take
more days off or even drop out of the labor market.
Bituminous coal output in February was at the same
average daily level as in January with the first two months
output 7 per cent below that o f the same period last year.
In the calendar year 1944 the average number o f workers
engaged in the coal mines o f W est Virginia was 7,200
less than in 1943, and no developments have occurred to
stay or reverse this trend. Facts on the operations of
strip mines are not available, but the strip mine act re­
cently passed by the W est Virginia Legislature requiring
reclamation of the land after mining is ended, could pre­
vent expansion in coal mined by the strip process or even
reduce it in the short run, if there were a sufficient number
o f operators who could not comply with the law.
The District’s contribution to the domestic cigarette
supply has been in a gradual downward trend for the
past year while indications point to a total production




holding on an even keel at peak levels. Since cigarette
requirements for the armed •forces are estimated higher
this year than last year, and since production appears to
be at its maximum, the District production for the
domestic market seems likely to continue the downward
trend.
Life insurance has been an important medium for the
investment o f the District's savings, and in 1944 the new
business written in the District amounted to $597 million,
an increase o f 13 per cent from 1943 and a gain, o f 35
per cent from 1942. Even though these gains are notable,
the growth in life insurance has probably not kept pace
with the growth in savings. New life insurance written
in the Fifth District in 1944 was at the best level since
1930. Iin the first two months o f 1945 sales were 10 per
cent ahead o f last year.
The average daily department store sales index, sea­
sonably adjusted, for February equalled the record high
figure established in November, and exceeded February
1944 by 20 per cent.
Total deposits o f the weekly reporting member banks
declined $17 million between February 14 and March 14,
but on the latter date they were $313 million higher than
on March 15, 1944. The reduction in the past month
was due entirely to a decline in United States Government
deposits o f $81 million as other deposits increased $64
million o f which $37 million was in demand deposits o f
individuals, partnerships, and corporations.
Loans and investments in the past month decreased
$16 million, o f which half the decline was caused by loans
and half by investments, while cash assets decreased $5
million in the same period. Between March 15, 1944, to
March 14, 1945, loans increased $19 million and invest­
ments, $255 million. The $255 million increase in se­
curity holdings between March 15, 1944, and March 14,
1945, was accounted for by an increase o f $265 million
in direct obligations o f the Government; a decline o f
$12 million in guaranteed obligations; and an increase o f
$2 million in other securities. Security holdings o f the
weekly reporting banks on March 14, 1945 are shown
below, together with changes from a month ago and a
year ago.
SECURITY HOLDINGS OF WEEKLY REPORTING BANKS
FIFTH DISTRICT
(Million Dollars)
Change from
Mar. 14, 1945
U. S. Gov’t, (direct). .
Biills . . .....................
C. of I............... ........
Notes .........................
Bonds .......................
Gov’t, guaranteed . . . .
Other securities . . . . . .
Total Securities .

1,567

Feb. 14, 1945

Mar. 15, 1944

— 12

+265

97
336
266
868
14
58

— 8
+32
— 39
+ 3
+ 2
4" 2

— 82
+ 92
49
+156
— 12
+ 2

1,639

— 8

+255

MONTHLY REVIEW

3

Deposit Ownership and its Relevance
Demand deposits o f individuals, partnerships and cor­
porations— which will hereafter be called deposits— of
468 banks which were members o f the Federal Reserve
System on January 31, 1944, continued the rising trend
that has been characteristic since the beginning o f the
war. These deposits on January 31 for the 468 banks
are estimated at $2,554,712,000, a gain o f 14.6 per cent
since the last deposit ownership survey at the end o f
July, 1944, and a gain o f 18.8 per cent since the Febru­
ary 1944 survey; they are 1.9 per cent higher than on
the December 30, 1944 call date. The above changes
are for the same banks in each period, since banks ad­
mitted to membership after February 1944 have been
included in previous figures. These are shown as follows
by size groups as classified on December 31, 1943.
TABLE 1.

ESTIMATED DEMAND DEPOSITS OF INDIVIDUALS,
PARTNERSHIPS AND CORPORATIONS OF ALL
MEMBER BANKS— FIFTH DISTRICT

Banks with Deposits
on Dec. 31, 1943 of
Over 50 Million ..........
25 - 50 Million ............
10 - 25 Million ............
5 - 10 Million ............
2 - 5 Million ............
1 - 2 Million ............
Under 1 M illion............
Total

...................

No. of
Banks
9
8
28
33
84
99
207
468

Jan. 31
1945

(Million Dollars)
United States
June
‘Dec.
June
Dec.
June
Dec.
June
Dec.
June
Dec.
June

30,
31,
29,
31,
30,
31,
30,
31,
30,
31,
30,

819,269
332,178
494,540
255,658
320,872
178,766
153,429

+ 2.2
+ .9
+ 3.9
+ 2.1
— .3
+ 1.3
+1.5

+16.2
+ 9.5
+15.3
+12,7
+19.6
+ 8.2
+16.1

+17-2
+12.6
+20.5
+20.9
+18.8
+26.0
+24.8

2,554,712

+ 1 .9

+14.6

+18.8

1939............ .......................
1939............ .......................
1940............ .......................
1940............ .......................
1941....................................
1941............
1942............ .......................
1942............. .......................
1943............. .......................
1943.............
1944.............

24,772
27,197
28,899
32,401
34,331
39,266
47,128
53,423

Fifth
District *

Dist. %
of U. S.

989
1,127
1,155
1,325
1,437
1,671
1,809
2,306
2,572
2,837
2,803

3.99
4.14
4.00
4.09
4.19
4.57
4.61
4.89
4.81
4.86
4.89

* Entire state of West Virginia included.

The trend o f deposits is an important consideration for
every bank in the District for two reasons: Some con­
ception o f the deposit trend is necessary in order to
formulate a rational investment policy. The more ac­
curate that conception, the better the bank will be equipped
to work out a suitable program for conversion o f funds.

Per Cent Change from
Dec. 30
July 31
Feb.29
1944
1944
1944

The rise in the deposit level is a direct result o f the
expansion of credit extended to the Federal Government
by bank purchases of Government bonds. So long as
the Treasury cannot obtain required funds from taxes
an d /or from the sale o f its bonds to non-bank investors
who will pay for them out o f current income, it will be
necessary for banks to continue extending credit to the
Government by continued purchases of these bonds. D e­
posits therefore will continue to rise so long as banks
must extend credit to the Government. The amount o f
the rise in deposits occasioned by direct Treasury financing
according to present reckoning, however, will be about
22 per cent smaller in the fiscal year 1946 than in the
current fiscal year. But a greater deposit rise would occur
if non-bank holders should sell some o f their bond hold­
ings to the commercial banks. The prospect over the
next year then points to a further rise in the deposits o f
the nation’s banks augmented or tempered in degree by
the manner in which the citizens invest in or divest them­
selves of Government securities.
The banks o f the Fifth Federal Reserve District, ac­
cording to F D IC figures, received an increasing share o f
the nation’s expanding deposits up through 1942, but
since then the District’s share has held about constant.
So long as the value o f production o f goods and services
in the District maintains pace with that of the nation,
deposits will also maintain the same rate of growth as
shown for the nation..
The manner in which the District’s deposits have
changed in relation to those o f the nation is shown as
fo llow s:



TABLE 2. DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS
AND CORPORATIONS, INSURED COMMERCIAL BANKS

A n a l y s is

of

D e p o s it

O w n e r s h ip

The problem o f holding cash at a minimum, and in­
vesting it in bills or certificates is one which ties in
directly with the analysis o f deposit ownership. Only by
knowing the character o f the receipts and expenditures
of the owners o f deposits can the banker hope to appraise
the probable flow o f funds into and out o f his bank. T o
assist him in this analysis is the primary objective o f the
semi-annual deposit ownership surveys conducted by this
and the other Federal Reserve Banks.
The chief purpose o f study o f deposit ownership should
be to determine two things. First, what volume o f funds
under any consideration can be considered permanent, and
second, what is the minimum cash requirement. W hen
these two problems can be answered with satisfaction, the
investment problem becomes one o f utilizing the perma­
nent funds in properly spaced securities maturing up to
10 years a n d /or in loans, and utilizing the balance o f the
funds above minimum cash requirements for investment
in bills and certificates.
D e p o s it O w n e r s h i p

O f the $2,554,712,000 o f deposits, estimated for the
member banks o f this District on January 31, 1945,
business concerns owned $1,437,697,000, or 56.3 per cent
TABLE 3.

OWNERSHIP OF MEMBER BANK DEPOSITS
FIFTH DISTRICT
January 31, 1945

July 31, 1944

Thous. $
372,654
175,261

%
14.6
6.9

Thous. $
376,908
162,151

528,522

20.7

445,073

February 29, 1944

Thous. $
%
16.9
348,858
7.3
163,002

%
16.2
7.6

20.0

19.5

Manufact’g & mining
Public utilities ............
Retail & wholesale
trade, etc..................
Other non-financial
business ...................
Total non-financial
business .............
Financial business . . .

182,688

7.1

166,647

7.5

171,556

8.0

1,259,125
178,572

49.3
7.0

1,150,779
159,330

51.7
7.1

1,103,817
155,333

51.3
7.2

Total business ........
Non-profit associations
Personal(incl. farmers)

1,437,697
136,606
980,409

56.3
5.3
38.4

1,310,109
114,273
805,637

58.8
5.1
36.1

1,259,150
117,741
773,826

58.5
5.5
36.0

2,554,712

100.0

2,230,019

100.0

2,150,717

100.0

Total

................. .

420,401

4

MONTHLY REVIEW

o f the total; individuals (including farmers) owned $980,409,000, or 38.4 per cent’; while non-profit associations
owned $136,606,000, or 5.3 per cent. Deposits owned by
business concerns and individuals have increased in dollar
amounts in each of the ownership surveys since that made
as of February 29, 1944, but business deposits have not
risen as rapidly as the total while individual deposits have
risen more rapidly than the total, as table 3 on page 3
shows.
Between February 29 and July 31, 1944, shifts in the
ownership of deposits were of minor proportions with the
total level rising $79,302,000, or 3.7 per cent. Those of
business organizations rose $50,959,000, or 4.0 per cent,
which was somewhat more percentagewise than the total;
personal deposits rose $31,811,000, or 4.1 per cent, which
was somewhat more percentagewise than either business
deposits or the total; while non-profit association deposits
declined $3,468,000, or 2.9 per cent. O f the increase o f
$50,959,000 in deposits of business concerns between
February 29, 1944, and July 31, 1944, deposits of manu­
facturing, mining, trade, and financial business concerns
increased $56,719,000, while deposits o f public utility and
other non-financial concerns declined $5,760,000.
From July 31, 1944, to January 31, 1945, there was a
notable drift of deposits into personal holdings, and a
marked gain in deposits o f non-profit associations. Total
deposits within this period increased $324,693,000, or
14.6 per cent. Deposits owned by individuals in the same
period rose $174,772,000, or 21.7 per cent; while deposits
o f non-profit associations increased $22,333,000, or 19.5
per cent. Deposits owned by business concerns between
July 31, 1944, and January 31, 1945, increased $127,588,000, or 9.5 per cent. Thus, the chief trends o f deposit
ownership in this latest period surveyed were into per­
sonal and non-profit association accounts, and had it not
been for an increase in total deposits there would have
been a shift of deposits from business accounts to per­
sonal and non-profit association accounts.
This is put in clearer perspective when it is noted that
business concerns owned 58.8 per cent of the deposits
on July 31, 1944, but received only 39 per cent o f the
increase in deposits from July 31, 1944, to January 31,
1945. Individuals owned 36.1 per cent of the deposits
on July 31, and received 54 per cent of the increase to
January 31, 1945; while non-profit associations owned 5.1
per cent o f the deposits on July 31, and received 7 per
cent o f the increase.
A s can be seen in Table 3, retail and wholesale trade
firms and dealers in commodities hold the largest propor­
tion o f the business deposits of any o f the classified busi­
ness owners, and these owners have shown a steadily in­
creasing percentage of total deposits on the three dates
under review. Table 4 shows the amount of this increase
between February 29, 1944, and January 31, 1945, to be
$108,121,000, which is 27 per cent of the total deposit
increase in the same period.
Other business concerns taken together show a steadily
declining percentage of total deposit holdings from 39.0
per cent on February 29, 1944, to 38.8 per cent on July
31, 1944, to 35.6 per cent on January 31, 1945. From
February 29, 1944, to January 31, 1945, the total dollar
increase o f business deposits, exclusive o f those owned



by firms engaged in trade, has amounted to $70,476,000,
or only 17 per cent o f the total deposit increase.
The accompanying table shows the changes in deposit
ownership o f Fifth District member banks as fo llo w s :
TABLE 4.

CHANGES IN DEPOSIT OWNERSHIP OF
FIFTHf DISTRICT MEMBER BANKS
Feb. 29, 1944
to
July 31,1944

Thous. $
Manufacturing
& mining . . + 28,050
Public utilities —
851
Retail & whole­
sale trade, etc. + 24,672
Other non-finan­
cial business
— 4,909
Total nonfinan
cial business
+ 46,962
Financial bus. + 3,997
Total business + 50,959
Non-profit
associations
— 3,468
Personal
(incl. farmers) + 31,811
Total . ..

+ 79,302

July 31, 1944
to
Jan. 31, 1945

Feb. 29, 1944
to
Jan. 31, 1945

Thous. $

%

+ 8.0
— 1.1

— 4,254
+ 13,110

— i.i
+ 8.1

+
+

+ 5.9

+

83,449

+ 18.7

+ 108,121

+ 25.7

— 2.9

+

16,041

+

+

+

+ 4.3
+ 2.6

+ 108,346
+ 19,242

+ 9.2
+ 12.1

+ 155,308
+ 23,239

+ 14.2
+ 15.0

+ 178,547

+ 14.2

+

+ 16.0

%

9.6

Thous. $
23,976
12,259

11,132

%
+
+

6.8
7.5

6.5

+ 4.0

+ 127,588

+

— 2,9

+

+ 19.5

+ 4.1

+ 174,772

+ 21.7

+ 206,583

+ 26.7

+ 3.7

+ 324,693

+ 14.6

+ 403,995

+ 18.8

A p p l ic a t io n

of

22,333

th e

9.5

18,865

S t a t is t ic s

These changes in deposit ownership are significant as
regards the use to which tljey will be put. They show
a distinct tendency for personal deposits to rise faster
than total deposits. This reflects large increases in per­
sonal incomes and a disposition to save in the form of
bank deposits.
Here, then, would seem to be a factor which the banker
could utilize when investing personal deposits. So long
as the total deposit level rises, these deposits might well
be fully invested. For such time in the future as the
banker can appraise his deposit trend, and until it is pos­
sible for individuals to make expenditures or down-payments for products costing considerable sums o f money,
the bulk o f personal deposits could be fully invested in
securities with maturities in keeping with the permanency
o f the deposits.
Deposits o f firms engaged in trade have shown a ten­
dency to rise somewhat faster than total deposits in the
period under review, but there will be many firms engaged
in trade like automobile dealers, farm implement dealers,
and others dealing in durable commodities which will use
their deposits to rebuild inventories as soon as they can
do so. Some o f them may even be prospects for loans.
Other retailers, like department and allied stores, are not
likely to experience any material change in their deposit
level unless expansion in quarters is contemplated or an
increase in receivables relative to sales takes place. These
might reduce their deposits by construction expenditures
and by further increasing inventories, as well as increas­
ing the draft on cash to carry a heavier receivable load.
As matters now stand, the best guess would be that from
one to two years would elapse from this moment before
any construction or inventory building could take place.
Even when these can be effected, the chances are that
there will be no wholesale movement o f deposits out of
the District’s banks for those purposes, but rather a
gradual reduction and o f moderate proportions. Those
transient retailers or wholesalers who move into areas
where business is extraordinarily good, however, will

MONTHLY REVIEW
probably close shop and withdraw their deposits when
trade conditions settle.
Business deposits other than those of trade firms have
increased only slightly. This is probably due in part to
price controls, to the fact that these concerns invest a
larger proportion of their income than do individuals, and
to a rising cost o f production which reduces income or
acts as a restraint on the increase. If deposits continue
to rise sufficiently, the chances are that deposits o f these
businesses will rise somewhat also, but if the deposit rise
is much less than has been experienced in recent years, it
is likely that some o f these business deposits will be
shifted to individuals so long as operating margins con­
tinue to be narrowed by increasing costs. Such firms as
are confronted with contract termination may find it
necessary to withdraw deposits for business uses before
final settlement is made. Many manufacturing concerns
will withdraw deposits as soon as they are able to make
repairs, replacements and extensions. Others now hold­
ing large raw material inventories may prefer to work
these down to lower levels and thus further increase de­
posits.
Appraisal o f these accounts should give the
banker a working idea of what portion may be considered
permanent funds, and these permanent deposits might be
invested in securities of appropriate maturities.
T r e n d o f D e p o s it O w n e r s h i p

Since under varying conditions different segments of
the economy o f the District change in different propor­

5

tions, it is important to note the effect o f these changes
on the different types of deposit trends. It is rarely ever
possible to stereotype any given bank as an “ agricultural”
bank, a “ trade” bank, or a “ manufacturing” bank, but
some o f these factors are often reflected in the size o f the
institutions. Most o f the District’s banks having deposits
over $50 million are in the larger cities, with those be­
tween $10 and $50 million located in the moderate sized
industrial cities as well as in the largest cities, while
those with deposits under $5 million are in small manu­
facturing cities, trading centers, and agricultural areas.
Deposit increases in this District have been largest in
agricultural areas or in those centers where war produc­
tion has been a new addition rather than a conversion.
In these areas increases in income have been the greatest,
and in the main, the deposits o f smaller banks have re­
flected these increases. But these trends are not so well
reflected in the changes between February 29, 1944 and
January 31, 1945, as between the year end figures, a fact
probably in part due to effects o f the Fourth W ar Loan
which ended a short while before the February 1944 sur­
vey. W e believe it will be useful to bankers, however, to
study the behavior o f ownership by size o f bank and the
accompanying table is submitted for that purpose.

DEPOSIT OWNERSHIP BY SIZE OF BANK
ALL FIFTH DISTRICT MEMBER BANKS
Thousand Dollars
Type of
Deposit Owners

Feb. 29,
1944

July 31,
1944

Jan. 31,
1945

Percentage Change
Feb. to
July

Per Cent of Total

July to
Jan.

Feb. to
Jan.

Feb. 29, July 31, Jan. 31,
1944
1944
1945

Banks with deposits over $50 million
1.
2.
3.
4.

Manufacturing and mining ................ .............
Public utilities, etc...................................
Retail and wholesale trade, etc. ........... ............
Other non-financial business .......... .................

142,559
80,364
118,100
58,002

152,321
69,108
120,587
58,531

151,565
77,011
150,745
64,722

+ 6.8
— 14.0
+ 2.1
+ 0.9

— 0.5
+11.4
+25.0
+10.6

+ 6.3
— 4.2
+27.6
+11.6

20.4
11.5
16.9
8.3

21.6
9.8
17.1
8.3

18.5
9.4
18.4
7.9

5.
6.

Total non-financial business .
Financial business ..........................

399,025
60,099

400,547
64,877

444,043
72,096

+ 0.4
+ 8.0

+10.9
+11.1

+11.3
+20.0

57.1
8.6

56.8
9.2

54.2
8.8

7.
8.
9.

Total business ....................... ....... ...... ............. 459,124
55,207
Non-profit associations ..........................
184,488
Personal .............................................

465,424
44,427
195,337

516,139
56,530
246,600

+ 1.4
— 19.5
+ 5.9

+10.9
+27.2
+26.2

+12.4
+ 2.4
+33.7

65.7
7.9
26.4

66.0
6.3
27.7

63.0
6.9
30.1

............ 698,819

705,188

819,269

+ 0.9

+16.2

+17.2

100.0

100.0

100.0

10.

Total .............................................

............

Banks with deposits of $25-$50 million
48,685
36,293
57,242
24,195

44,003
43,700
63,729
24,884

43,848
41,854
74,408
24,913

— 9.6
+20.4
+11.3
+ 2.8

— 3.5
— 4.2
+16.8
+ 0.1

— 9.9
+15.3
+30.0
+ 3.0

16.5
12.3
19.4
8.2

14.5
14.4
21.0
8.2

13.2
12.6
22.4
7.5

Total non-financial business . ..........
Financial business .....................

166,415
25,375

176,316
24,885

185,023
29,564

+ 5.9
— 1.9

+ 4.9
+18.8

+11.2
+16.5

56.4
8.6

58.1
8.2

55.7
8.9

7.
8.
9.

Total business .............................. .......
Non-profit associations .............
.......
Personal ......................................... ..........

191,790
10,622
92,649

201,201
12,746
89,524

214,587
14,948
102,643

+ 4.9
+20.0
— 3.4

+ 6.7
+17.3
+14.7

+11.9
+40.7
+10.8

65.0
3.6
31.4

66.3
4.2
29.5

64.6
4.5
30.9

10.

Total ........................................... ..........

. 295,061

303,471

332,178

+ 2.9

+ 9.5

+12.6

100.0

100.0

100.0

1.
2.
3.
4.

Manufacturing and mining . ...
Public utilities, etc...................................
Retail and wholesale trade, etc. . . ..................
Other non-financial business . ............
.

5.
6.




MONTHLY REVIEW
Thousand Dollars
Type of
Deposit Owners

Feb. 29,
1944

July 31,
1944

Jan. 31,
1945

Percentage Change
Feb. to
July

Per Cent of Total

July to
Jan.

Feb. to
Jan.

Feb. 29,
1944

July 31, Jan. 31,
1945
1944

14.7

15.7

6.1

6.0

22.7

22.5
8.9

Banks with deposits of $10-$25 million
60,343
25,040
93,182
49,670

67,325
25,729
96,485
38,165

71,214
27,694
115,228
41,541

+ 11.6
+ 2.8
+ 3.5
—23.2

+ 5.8
+ 7.6
+19.4
+ 8.8

+18.0
+ 10.6
+23.7
— 16.4

Total non-financial business . ........... ............ 228,235
Financial business ................................... ............ 34,071

227,704
34,306

255,677
37,585

— 0.2
+ 0.7

+12.3
+ 9.6

+ 12.0
+10.3

55.6
8.3

53.1
8.0

51.7
7.6

9.

Total business ....................................... ............ 262,306
Non-profit associations ........................... ............ 18,472
............ 129,716

262,010
24,014
142,798

293,262
28,683
172,595

— 0.1
+30.0
+ 10.1

+11.9
+19.4
#
+20.9

+ 11.8
+55.3
+33.1

63.9
4.5
31.6

61.1
5.6
33.3

59.3
5.8
34.9

10.

............ 410,494

428,822

494,540

+ 4.5

+15.3

+20.5

100.0

100.0

100.0

12.2

1.
2.

3.
4.
5.
6.

7.
8.

Manufacturing and mining .................. ............
Public utilities, etc.................................... ............
Retail and wholesale trade, etc............... ............
Other non-financial business ................ ............

12.1

14.4
5.6
23.3
8.4

Banks with deposits of $5-$10 million
1.
2.
3.
4.
5.

30,883
9,307
48,863
15,442

32,218
10,664
53,771
17,243

31,190
11,505
61,102
17,129

+ 4.3
+14.6
+ 10.0
+11.7

— 3.2
+ 7.9
+13.6
— 0.7

+ 1.0
+23.6
+25.0
+10.9

14.6
4.4
23.1
7.3

14.2
4.7
23.7
7.6

4.5
23.9
6.7

104,495
17,134

113,896
18,831

120,926
19,174

+ 9.0
+ 9.9

+ 6.2
+ 1.8

+15.7
+11.9

49.4

50.2
8.3

47.3
7.5

.. 121,629
.. 12,692
77,209

132,727
12,252
81,905

140,100
13,806
101,752

+ 9.1
— 3.5
+ 6.1

+ 5.6
+12.7
+24.2

+15.2
+ 8.8
+31.8

57.5
36.5

58.5
5.4
36.1

54.8
5.4
39.8

211,530

226,884

255,658

+ 7.3

+12.7

+20.9

100.0

100.0

100.0

14.5
3.6
24.5
5.3

Manufacturing and mining
Public utilities, etc.......................
Retail and wholesale trade, etc.
Other non-financial business .
Total non-financial business .
Financial business ......................

6.

Total business ...........
Non-profit associations
Personal ........................
10.

.

Total

8.1

6.0

Banks with deposits of $2-$5 million
38,080
8,642
63,737
16,475

44,267
8,853
63,583
13,682

46,526
11,551
78,614
17,006

+16.2
+ 2.4
— 0.2
— 17.0

+ 5.1
+30.5
+23.6
+24.3

+ 22.2
+33.7
+23.3
+ 3.2

14.1
3.2
23.6
6.1

16.5
3.3
23.7
5.1

126,934
9,993

130,385
' 9,658

153,697
12,514

+ 2.7
— 3.4

+17.9
+29.6

+ 21.1
+25.2

47.0
3.7

48.6
3.6

47.9
3.9

Total business ...........
Non-profit associations
Personal . .......................
10.

Manufacturing and mining . ...
Public utilities, etc.......................
Retail and wholesale trade, etc.
Other non-financial business ....
Total non-financial business
Financial business .....................

1.
2.
3.
4.

136,927
12,153
120,992

140,043
12,341
115,898

166,211
13,156
141,505

+ 2.3
+ 1.5
— 4.2

+18.7
+ 6.6
+ 22.1

+21.4
+ 8.3
+17.0

50.7
4.5
44.8

52.2
4.6
43.2

51.8
4.1
44.1

270,072

268,282

320,872

- 0.7

+ 19.6

+18.8

100.0

100.0

100.0

14.1

Total

Banks with deposits of $l-$2 million
18,721
2,127
21,700
4,822

23,289
2,643
26,427
5,285

16,804
4,112
25,564
8,938

+24.4
+24.3
+ 21.8
+ 9.6

—27.8
+55.6
— 3.3
+69.1

— 10.2
+93.3
+17.8
+85.4

13.2
1.5
15.3
3.4

16.0
3.2

9.4
2.3
14.3
5.0

Total non-financial business
Financial business ....................

47,370
5,957

57,644
5,451

55,418
5,184

+21.7
— 8.5

— 3.9
— 4.9

+17.0
— 13.0

33.4
4.2

34.9
3.3

31.0
2.9

Total business ...........
Non-profit associations
Personal .........................

53,327
4,539
83,963

63,095
3,469
98,607

60,602
3,039
115,125

+18.3
—23.6
+17.4

— 4.0
— 12.4
+16.8

+13.6
— 33.0
+37.1

37.6
3.2
59.2

38.2
59.7

33.9
1.7
64.4

141,829

165,171

178,766

+16.5

+ 8.2

+26.0

100.0

100.0

100.0

7.8

10.2
1.1

7.5

1.0

14.3
2.4

15.5
6.7

14.9
5.5

1.
2.
3.
4.

Manufacturing and mining ....
Public utilities, etc.......................
Retail and wholesale trade, etc.
Other non-financial business .....

5.
6.

7.

10.

Total

.

1.6

2.1

Banks with deposits of under $1 million
1.
2.
3.
4.

Manufacturing and mining .....
Public utilities, etc.......................
Retail and wholesale trade, etc.
Other non-financial business .

9,587
1,229
17,577
2,950

13,485
1,454
20,491
8,857

11,507
1,534
22,861
8,439

+40.7
+18.3
+16.6
+ 200.2

— 14.7
+ 5.5
+ 11.6
— 4.7

+ 20.0
+24.8
+30.1
+186.1

5.
6.

Total non-financial business .
Financial business ......................

31,343
2,704

44,287
1,322

44,341
2,455

+41.3
— 51.1

+ 0.1
+85.7

+41.5
— 9.2

25.5

33.5

28,9

2.2

1.0

1.6

7.
8.
9.

Total business ...........
Non-profit associations
Personal
.....................

34,047
4,056
84,809

45,609
5,024
81,568

46,796
6,444
100,189

+34.0
+23.9
— 3.8

+ 2.6
+28.3
+22.8

+37.4
+58.9
+18.1

27.7
3.3
69.0

34.5
3.8
61.7

30.5
4.2
65.3

122,912

132,201

153,429

+ 7.6

+16.1

+24.8

100.0

100.0

100.0

10.

Total




1.0

7

MONTHLY REVIEW

FEDERAL RESERVE BANK OF RICHMOND
(All Figures in Thousands)

DEBITS TO INDIVIDUAL ACCOUNTS

ITEMS
Total Gold Reserves ................. .
Other Reserves .........................
Total Reserves .......................
Bills Discounted .....................
Industrial Advance ...................
Gov’t. Securities, Total ..........
Bonds .......................................
Notes ........................................
Certificates .............................
Bills ........................................
Total Bills and Securities . . .
Uncollected Items . ............... .
Other Assets ...............................
Total Assets ........................... .

March 14
1945
$1,026,078
14,199
1,040,277
8,175
119
1,142,162
72,551
68,339
346,744
654,528
1,150,456
150,979
12,486
$2,354,198

Change in Amt. from
2-14-45
3-15-44
+ 38,186
— 30,940
— 3,226
— 2,798
+ 34,960
— 33,738
+
2,175
+ 2,425
—
98
—
2
— 4,216
+ 491,028
— 23,688
— 1,161
— 9,179
— 31,988
+ 30,901
+ 156,655
— 1,968
+ 367,240
— 1,793
+ 493,105
+ 18,721
+
2,857
— 3,120
— 2,172
+ 48,768
+ 460,052

Fed. Res. Notes in Cir.............. .
Deposits, Total .........................
Members’ Reserves ...............
U. S. Treas. Gen. Acc...........
Foreign .....................................
Other Deposits .......................
Deferred Availability Items .
Other Liabilities ..................... .
Capital Accounts . .................
Total Liabilities
...............

$1,510,885
689,563
618,878
18,594
49,073
3,018
130,001
493
23,256
$2,354,198

+ 23,539
— 6,266
+ 2,194
— 6,437
— 2,454
+
431
+ 30,978
+
42
+
475
+ 48,768

+ 347,420
+103,382
+ 95,057
+ 17,557
— 8,677
—
555
+
5,467
+
167
+
3,616
+ 460,052

41 REPORTING MEMBER BANKS— 5th DISTRICT
(All Figures in Thousands)
March 14
1945
ITEMS
Total Loans ................................... $ 297,751
140,966
Bus. and Agric. Loans ..........
Real Estate Loans .................
45,963
All Other Loans .....................
110,822
Total Security Holdings ............
1,638,029
U. S. Treas. Bills ...................
97,213
U. S. Treas. Certificates ........
335,848
U. S. Treas. Notes .................
265,838
867,815
U. S. Gov. Bonds ...................
Obligations Gov. Guaranteed.
13,556
Other Bonds, Stocks and Sec.
57,759
106,084
Cash Items in Process of Col. ..
150,860
Due from Banks ...................
39,249
Currency and Coin .....................
317,444
Reserve with F. R. Bank ..........
68,792
Other Assets ...............................
Total Assets ................................. $2,618,209
Total Demand Deposits ............
Deposits of Individuals ..........
Deposits of U. S. Gov.............
Deposits of State & Local Gov.
Deposits of Banks .................
Certified & Officers’ Checks. .
Total Time Deposits .................
Deposits of Individuals ..........
Other Time Deposits .............
Liabilities for Borrowed Money.
All Other Liabilities . - ............
Capital Accounts . . . .
....

$2,091,048
1,227,208
347,750
82,368
409,883
23,839
307,478
293,824
13,654
5,500
92,427
121,756
$2,618,209

Change in Amt. from
3-15-44
2-14-45
— 8,089
+ 19,630
— 3,660
+ 11,748
—
281
— 3,025
— 4,148
+ 10,907
+ 253,471
— 8,659
— 32,201
— 7,455
+ 31,804
+ 91,403
— 39,246
+ 48,578
+ 156,194
+ 2,410
— 12,081
+ 1,744
+ 2,084
+
1,578
+
5,186
+ 9,468
+ 23,340
— 9,728
+
4,435
+ 1,716
+ 3,048
+ 38,970
+ 1,359
+
7,980
— 10,885
+ 353,012
— 22,875
+ 316,711
— 81,424
+ 6,109
+ 9,740
+ 5,989
+ 5.678
+ 5,677
+
1
+ 1,500
+ 4,044
+
768
— 10,885

+ 256,850
+ 176,710
+ 13,000
+
6,885
+ 63,768
■
— 3,513
+ 54,461
+ 56,974
— 2,513
+
1,500
+ 29,561
+ 10,640
+ 353,012

* Net figures, reciprocal balances being eliminated.

DEPOSITS IN MUTUAL SAVINGS BANKS
8 Baltimore Banks
Total Deposits .

Feb. 28, 1945
. . . . .$304,230,621

Jan. 31, 1945
$300,041,503 .

Feb. 29, 1944
$263,354,813




So. Carolina
156,193
172,983
167,339
329,176
337,102

Virginia
19,849
20,502
19,661
40,351
38,883

2 Mos.
1945

% chg. from
2 Mos. 1944

$ 509,540

+ 17

$1,063,776

+ 16

Maryland
Baltimore ..........
Cumberland
Frederick ............
Hagerstown

701,903
12,786
11,716
14,751

— 6
+ 1
0
— 11

1,499,332
27,142
23,206
31,053

— 1
+ 11
+ 2
— 9

North Carolina
Asheville ............
Charlotte ............
Durham ..............
Greensboro ..........
Kinston ..............
Raleigh .............
W ilmington ........
Wilson ...............
Winston-Salem . .

23,980
116,945
52,120
40,842
6,456
48,116
31,038
9,006
56,029

+ 11
+ 2
+ 10
+ 41
— 1
— 14
— 16
+ 16
— 16

55,295
252,661
118,460
80,222
16,348
104,789
72,647
20,794
130,308

+ 20
+ 10
+ 11
+ 19
+ 17
— 8
+ 1
+ 30
— 1

South Carolina
Charleston ..........
Columbia ............
Greenville ..........
Spartanburg

37,296
47,333
38,161
19,868

— 11
— 3
+ 11
+ 1

81,298
101,740
80,426
44,553

—
+
+
+

Virginia
Charlottesville . .
Danville .............
Lynchburg ..........
Newport News . .
Norfolk ...............
Portsmouth ........
Richmond ............
Roanoke ..............

18,692
14,670
19,153
19,912
102,747
14,521
307,635
39,180

+ 39
+ 11
— 4
— 31
— 11
— 6
— 6
— 1

38,872
37,898
42,042
44,218
234,677
32,347
658,060
84,810

+ 43
+ 39
+ 1
— 19
+ 1
+ 4
+ 3
+ 10

West Virginia
Bluefield .............
Charleston ..........
Clarksburg ........
Huntington ........
Parkersburg
District Totals

21,908
74,501
14,272
35,030
16,255
$2,476,362

— 1
— 1
+ 4
+ 30
+ 14
0

47,498
155,361
32,727
73,128
36,394
$5,322,082

+ 4
— 1
+ 11
+ 27
+ 24
+ 5

1
4
11
7

COMMERCIAL FAILURES
PERIODS
February 1945..
January
1945..
February 1944..
2 Months 1945..
2 Months 1944..

Number of Failures
District
U. S.
1
66
4
80
2
132
5
146
5
252

Total Liabilities
District
U. S.
$ 1,000
$1,557,000
900,000
5,883,000
18,000
3,108,000
$901,000
$7,440,000
120,000
4,816,000

Source: Dun & Bradstreet

COTTON CONSUMPTION AND ON HAND— BALES
Feb.
1945
Fifth District States:
Cotton consumed ..........
384,510
Cotton Growing States:
Cotton consumed ..............
691,031
Cotton on hand Feb. 28 in
Consum’g establishments 1,983,668
Storage & compresses. . 12,295,078
United States
Cotton consumed ..............
781,559
Cotton on hand Feb. 28 in
Consum’g establishments 2,278,052
Storage & compresses.. 12,400,3192
Spindles Active, U. S............ 22,223,848

Feb.
1944

Aug. 1 to Feb. 28
1945
1944

406,438

2,807,570

2,922,229

714,633

5,003,545

5,184,439

5,658,740

5,902,178

2,016,122
11,307,178
811,062
2,350,819
11,521,058
22,513,390

RAYON YARN DATA

COTTON CONSUMPTION— FIFTH DISTRICT
In Bales
MONTHS .
No. Carolina
February 1945.. . ' 208,468
January 1945..
226,639
February 1944..
219,438
435,107
2 Months 1945..
443,826
2 Months 1944.. .

Dist. of Columbia
Washington

(000 omitted)
February
% chg. from
1945
Feb. 1944

Feb. 1945
District
384,510
420,124
406,438
804,364
819,811

Jan. 1945

Feb. 1944

Rayon Yarn Shipments, Lbs. . . .
Staple Fiber Shipments, Lbs. .. .

45.700.000
12.800.000

47.800.000
14.400.000

43.300.000
13.600.000

Rayon Yarn Stocks, Lbs..............
Staple Fiber Stocks, Lbs..............

6,600,000
3,200,000

8.400.000
3.100.000

7.500.000
2.100.000

Source: Rayon Organon.

MONTHLY REVIEW

8

BUILDING PERMIT FIGURES
Fifth Federal Reserve District
Total Valuation
Feb. 1944
Feb. 1945
Maryland
Baltimore ......................................
Cumberland ...................................
Frederick ......................................

$ 182,335
2,460
6,240
10,265
2,745
$

24,199
10,605
107,085
0
52,410
189,170
43,187

$

3,765
2,395
41,975
4,200
13,276
71,960
4,963

$

63,318
7,455
39,590

$

27,594
460
5,460

$

Virginia
Danville ..........................................

$ 258,102
26,945
3,300
100,550
9,756

26,835
115,967
20,679
17,680
5,506
1,600
1,250
900
73,258

$

10,848
33,103
10,640
5,178
17,739
46,999
2,500
27,630
15,993

69,340
15,905
3,645
23,310

$

Norfolk .........................................
Petersburg ...................................
Richmond .....................................
Roanoke ..........................................
West Virginia

North Carolina

Raleigh

..........................................

South Carolina
Charleston ....................................

$

District of Columbia

25,398
6,217
1,925
179,245

$ 598,243

$ 603,860

$1,715,182

$1,561,976

$5,246,759

$2,707,059

RETAIL FURNITURE SALES
Percentage Changes in Feb. and 2 Mos. 1945
Compared with
Compared
Feb. 1944
2 Mos. 1
Maryland (5)* .................
+ 10
+ 13
Dist. of Columbia (6)* . . .
— 1
+ 7
Virginia (25)* .................
+ 11
+ 12
West Virginia (9)* ..........
+ 20
+ 8
North Carolina (21)* . . . .
+ 19
+ 28
South Carolina (13)* . . . .
+ 16
+ 7
Fifth District (79)* . . .
+ 13
+ 10
INDIVIDUAL CITIES
Baltimore, Md. (5)* ........
Washington, D. C. (6)* ..
Lynchburg, Va. ( 3 ) * ........
Richmond, Va. (7)* ........
Charlotte, N. C. (4)* ___
Winston-Salem, N. C. (3)*
Columbia, S. C. ( 4 ) * ........

+ 10
— 1
— 1
+ 16
+ 18
+ 21
+ 8

+
+
+
+
+
+
+

13
7
3
16
32
37
6

* Number of reporting stores.

DEPARTMENT STORE TRADE
Richmond
Baltimore
Washington
Other Cities
District
Percentage change in Feb. 1945 sales, compared with sales in Feb. 1944:
+ 14
+13
+13
+21
+15
Percentage change in 2 mos.’ sales 1945, compared with 2 mos. 1944
+ 18
+13
+14
+25
+16
Percentage chg. in stocks on Feb. 28, 1945, compared with Feb. 29, 1944:
— 2
— 3
— 4
0
■ 3
—
Percentage chg. in outstand’g orders Feb. 28/45 from orders Feb. 29/44:
+ 53
+47
+ o0
+70
+50
Percentage in total receivables Feb. 28/45 from receivables Feb. 29/44:
+ 19
+19
+ 15
.
+20
+17
Percentage of current receivables as of Feb. 1 collected in February:
53
56
53
56
54
Percentage of instalment receivables as of Feb. 1 collected in February:
25
27
23
30
25
Percentage change in Feb. 4945 sales from Feb. 1944 sales, by States:

TOBACCO MANUFACTURING
% Change
% Change
from
from
2 Mos.
Feb.
1945 2 Mos/44
Feb. 1944
1945
Smoking and chewing to­
+ 19
45,035
+ 19
21,197
bacco (Thousands of lbs.)
— 2
— 4
36,749,726
Cigarettes (Thousands ) ........ 16,672,714
768,049
0
388,629
+ 2
Cigars (Thousands) ..............
7,574
3,892
+ 4
Snuff (Thousands of lbs.) . . .
+ 11

WHOLESALE TRADE, 248 FIRMS

LINES
Auto Supplies (13)* . . . .
Drugs & Sundries (11)*.
Dry Goods (7)* ................
Electrical Goods (17)* ..
Hardware (16)* ..............
Industrial Supplies (8 )* ..
Paper & Products (7)* ..
Tobacco & Products (8)*
Miscellaneous (85)* ........
District Average (248)*

Net Sales
Feb. 1945
compared with
Jan.
Feb.
1945
1944
+ 48
+ 4
— 11
— 1
— 6
0
— 3
0
— 12
— 6
— 4

Source: Department of Commerce.
* Number of reporting firms.




+ 9
— 13
— 13
— 1
— 14
— 8
0
— 17
— 5
— 10
— 9

Stock
Feb. 28, 1945
compared with
Feb. 29 Jan.31
1944
1945
+ 35
— 11
— 25
+ 10
— 7
— 1
+ 15

+ 9
+ 2
— 9
+ 38
+ 2
— 4
— 1

— 39
— 16
— 8

’*O
— 2
0

Ratio Feb.
collections
to accounts
outstand’g
Feb. 1
106
115
92
91
149
107
89
92
135
121
110

Maryland Dist. of Col. Virginia
W. Va.
No. Caro.
So. Caro.
+ 13
+13
+ 17
+26
+20
+19
Percentage change in 2 months’ sales, 1945 compared with 1944:
+ 13
+14
+19
+ 25
+24
+17

SOFT COAL PRODUCTION IN THOUSANDS OF TONS
2 Mos
Feb.
Feb.
2 Mos.
c
/o
%
1945
1944 Change 1945
1944
REGIONS
Change
— 11
13,594
West Virginia .. . 12,031
25,428
27,557
— 8
— 4
— 6
3,381
1,610
1,709
3,523
— 23
284
138
180
— 21
359
5th District
. 13,779
15,483
— 11
29,093
31,439
— 7
52,817
— 11
99,100
106,919
— 7
United States . . 46,900
29.4
29.4
29.4
29.3
% in District ..

CONTRUCTION CONTRACTS AWARDED
STATES
Maryland ................. ,
Dist. of Columbia . .
Virginia ...................
West Virginia ..........
North Carolina .........
South Carolina .........
Fifth District ........

Jan. 1945
$ 5,487,000
2,713,000
8,573,000
1,175,000
3,010,000
1,357,000
$22,315,000

Source. F. W. Dodge Corporation.

Jan. 1944
$10,912,000
2,178,000
9,609,000
1,026,000
3,297,000
5,407,000
$32,429,000

% Change
— 50
+ 25
— 11
+ 15
— 9
— 75
— 31

MONTHLY REVIEW

9

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)

Industrial activity continued to increase slightly in Feb­
ruary and the early part of March. Value of department
store sales was one-fifth greater than in the same period
last year.
Wholesale commodity prices generally showed
little change.
Industrial Production
The Board’s seasonally adjusted index of industrial pro­
duction was 235 per cent of the 193^-39 average in Febru­
ary, as compared with 234 in January and 232 in the last
quarter of 1944.
Steel production, which declined further in the first part
of February as a result of continued severe weather con­
ditions, showed a substantial increase at the end of the
month and in the first three weeks of March. Average out­
put of open hearth steel during February was 2 per cent
above the January rate, while electric steel production in­
creased 7 per cent. Output of nonferrous metals continued
to rise slightly in February, largely reflecting increased
military demands.
Activity in the machinery and trans­
portation equipment industries was maintained at the level
of the preceding month; a decline in shipbuilding offset a
slight increase in output of most other munitions industries.
Production of lumber and stone, clay, and glass products in
February was at about the January level.
Production of most nondurable goods showed little change
in February. Output of cotton goods and shoes, however,
rose 5 per cent from the preceding month to a level slightly
above that of a year ago. Output of explosives and smallarms ammunition showed further large gains. Activity at
meatpacking establishments continued to decline, as pork
and lard production dropped further and was 50 per cent
below the peak level reached a year ago. In March it was
announced that supplies of meat available for civilians in
the second quarter of 1945 would be 12 per cent less than
in the first quarter. Activity in rubber products industries
in January and February was 6 per cent above last autumn,
reflecting chiefly a sharp increase in production of military
truck tires.
Minerals output rose slightly in February, reflecting in­
creased output of anthracite and a further gain in crude
petroleum production. Anthracite production recovered in
February and the first two weeks of March from a large
decline during January. Bituminous coal production showed
little change in February from the January level and de­
clined slightly in the eariy part of March.

Distribution
Department store sales in February, which usually show
little change from January, increased considerably this
year. Value of sales in February and the first half of March
was 22 per cent larger than in the corresponding period a
year ago, reflecting the earlier date of Easter this year
and continuation of the freer spending in evidence since
the middle of 1944.
Freight carloadings, which had declined at the end of
January and the early part of February owing to severe
weather conditions, have increased since that time.
Ship­
ments of miscellaneous freight were in larger volume in
the 5-week period ending March 17 than in the correspond­
ing period of 1944, while loadings of most other classes of
freight were less.
Bank Credit
Treasury expenditures during February and the first half
of March continued to increase the total volume of de­
posits and currency held by the public. Adjusted demand
deposits at weekly reporting banks in 101 cities increased
1.4 billion dollars and time deposits rose about 200 million
dollars during the four-week period ended March 14. Cur­
rency in circulation increased 350 million dollars over the
same period, but declined somewhat in the week following.
To meet the resulting increase in required reserves as well
as the currency drain, Federal Reserve Bank holdings of
United States Government securities increased 395 million
dollars in the four weeks ended March 14, while reductions
in non-member and in Treasury deposits at the Reserve
Banks supplied 450 millions of reserve funds to member
banks. Excess reserves have remained at an average level
of about a billion dollars.
The increase in Federal Reserve holdings of Government
securities roughly paralleled the decline in commercial bank
holdings. Reporting banks reduced their portfolios by 260
million dollars in the four weeks.
Holdings of Treasury
notes declined by 1.7 billion dollars while certificate holdings
increased by 1.4 billion dollars, reflecting the March 1
Treasury exchange offer.
Bill holdings were reduced by
210 million dollars. Bond holdings, however, continued to
increase.
Total loans for purchasing and carrying Gov­
ernment securities declined by 230 million dollars and
commercial loans by 185 million.

BUSINESS IN D E X ES— FIFTH FEDERAL RESERVE DISTRICT
Average Daily 1935-39 = 100
Seasonally Adjusted
Jan.
1945
Bank Debits .................................
Bituminous Coal Production * .
................
Building Contracts Awarded ............. ... ..........
Building Permits Issued .
... ...
Cigarette Production ...........
......... ...
Cotton Consumption * ........
...... ................
Department Store Sales
.....................
Department Store Stocks ............................ ....
Electric Power Production ........ ........
Employment— Mfg. Industries * .
Furniture Orders ...................
Furniture Shipments ..........
..... .
Furniture Unfilled Orders .
Life Insurance Sales ..................
Wholesale Trade— Four Lines .
Wholesale Trade— Drugs ..........
Wholesale Trade— Dry Gods . ..
-l
Wholesale Trade— Groceries .. ......... .. .
Wholesale Trade— Hardware
............
Retail Furniture Sales ..

* Not seasonally adjusted.



209
139
103
64
138r
145
238
178
214
137p
177p
199p
465p
140
198
216
252
208
97
157

Dec.
1944

Nov.
1944

231
118
96
42
155
133
208
162
209
138
186
204
561

226
146
81
48
162
149
251
159
215
137
160
144
494
137
182
232
98

120

177
223
120

190
105
167

200

94
166

Jan.
1944 •
197
149
150
21

158
148
208
179
204
147
208
209
440
121

184
201

193
191
110

130

% Change
. Jan. 1945 from
Dec. ’44
Jan. *44
—
+
+
+
—
+
+
+
+
—

10

18
7
52
11

9
14
10
2
1

5
_

2

— 17
+ 17
+ 12
— 3
+110

+
—
—

9
8
6

+ 6
— 7
— 31
+205
— 13
— 2
+ 14
—

+
—
—
+
+
+
+
+
+
—
+

1

5
7
15
5
6

16
8

7
31
9
12
21


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102