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MONTHLY REVIEW o f Financial and Business Conditions <v “ BaltimoreV? I F ifth Federal ; : Richmond 0 ' VA; 1/ ^ N.C. Reserve D is tr ic t .^Charlotte &C May 31, 1939 Federal Reserve Bank, Richmond, Va. Debits to individual accounts (24 cities)... Number of business failures, 5th district... Liabilities in failures, 5th district................ Sales, 30 department stores, 5th district.... Sales, 38 furniture stores, 5th district........ Sales, 216 wholesale firms, 5th district...... Registrations, new passenger autos............ Value of building permits, 31 cities............ Value of contracts awarded, 5th district... Cotton consumption, 5th district (Bales). Cotton price, c per lb., end of month.......... Rayon yarn shipments, U. S. (P ou nds).... Rayon yarn stocks, U. S. (P ou nds).......... Soft coal mined, U. S. (T o n s )................. H E strike of bituminous coal miners in the Appa lachian region, which began on April 1 and con tinued six weeks, threw about 150,000 men out o f work in the Fifth district, including miners, employees o f rail roads engaged in hauling coal, and workers in scattered industrial plants affected by coal shortage. A local strike of tobacco factory workers in Richmond and Durham removed 2,000 men and women from payrolls for one week in April. There was also a reduction o f about 7 per cent in operating time in the district’s cotton textile mills last month. On the other hand, construction work broadened further, and increased activity on farms called for some additional agricultural workers. H owever, the new jobs provided did not equal the lay-offs of miners, railroad employees and industrial wage earners resulting either directly or indirectly from the coal strike, and there fore there was a material decrease in consumer purchasing power in the Fifth district in April and the first half o f May. Due to the fact that most o f the miners trade in smaller towns and cities, from which data are difficult to obtain, the influence of the coal strike is only partly visible in the statistical series carried in the Reviezv. Debits to individual accounts in 24 Fifth district cities in April 1939 were approximately equal to debits in April 1938, but showed a decrease of 7 per cent from March 1939 debits, a somewhat larger seasonal decline than oc T March 1939 April 1939 $1 ,233,482,000 59 560,000 $ 9,466,426 $ 645,446 $ $ 13,298,000 17,800 $ 11,904,407 $ 38,946,000 310,642 8.48 26,500,000 41,300,00 35,290,000 $1,146,848,000 55 525,000 $ 8,842,875 $ 728,152 $ $ 11,699,000 20,188 8,579,777 $ $ 42,008,000 259,795 8.81 23,100,000 43,800,000 10,747,000 April 1938 $1,146,409,000 42 604,000 $ 9,518,841 $ 704,102 $ $ 11,754,000 14,092 8,861,313 $ $ 25,114,000 204,154 8.76 16,300,000 65,900,000 21,671,000 Mo. Year __ 7 0 — 7 + 31 — 6 13 — 7 — 7 + 13 + 3 12 0 + 13 + 43 3 26 + 8 ~b 67 16 - f 27 1 + 4 + 13 + 42 34 + 6 70 — 50 curs in most years. Commercial failures last month were fewer than in March, but exceeded the number o f failures in April 1938 by 31 per cent. Liabilities involved in April 1939 insolvencies, however, were lower than in either o f the earlier months mentioned. Sales in depart ment stores in the district in April were 7 per cent smaller than in either March this year or April last year, the de crease during the year being partly due to an earlier Eas ter this year and partly to an additional business day in April 1938. Retail sales o f furniture, on the other hand, were 13 per cent better in April this year than in March, and 3 per cent better than in April last year. Wholesale trade in 216 firms declined 12 per cent from March to April, but in the latter month was about equal to the volume o f business done in April 1938. Automobile sales in the district increased over March sales, and were 43 per cent ahead o f sales in April last year, although April 1939 sales in W est Virginia were only 22 per cent higher than sales in April 1938. The value o f building permits issued in Fifth district cities last month was lower than the value for either March this year or April last year, but contracts actually awarded last month totaled more than in any other month since March 1930. Cotton con sumption in Fifth district mills and shipments o f rayon yarn declined in April, but both continued substantially above consumption and shipments a year ago. MONTHLY REVIEW 2 R eserve B a n k O p e r a t io n s : There were no important changes in the statement of the Federal Reserve Bank of Richmond between April 15 and May 15, but between May 15, 1938, and May 15, 1939, total earning assets decreased by $6,290,000, while Federal Reserve notes in actual circulation rose $3,991,000, member bank reserve deposits rose $31,479,000, and cash reserves o f the bank rose $36,940,000. The decrease in earning assets was due chiefly to a reduction in holdings of Government securi ties on the 1939 date. ITEMS Discounts held ............................................ Open market paper .................................... Industrial advances .................................. Government securities .............................. Total earning assets ............................ Circulation of Fed. Res. notes ............... Members’ reserve deposits ..................... Cash reserves .............................................. Reserve ratio .............................................. 000 omitted' May 15 Apr. 15 May 15 1939 1939 1938 $ 277 $ 260 $ 510 24 24 24 1,172 1,177 1,477 134,227______134,227_____ 139,979 135,700 135,688 141,990 194,239 195,287 190,248 246,064 250,796 214,585 374,682 367,824 337,742 74.27 73.92 71.32 41 R e p o r t i n g M e m b e r B a n k s : Member banks in 12 leading Fifth district cities increased loans and discounts by $4,521,000 and investments in securities by $5,776,000 between April 12 and May 10, both this year, and time deposits also rose by $2,045,000, but their reserve balances declined $3,519,000 during the same pe riod and there was a small decline in demand deposits. During the year since M ay 11, 1938, material increases occurred in investments in securities, reserve balances, and demand deposits. S tatem en t of ITEMS Loans & discounts .................................... Investments in securities ....................... Reserve bal. with F. R. bank ............... Cash in vaults ............................................ Demand deposits ........................................ Time deposits .............................................. Money borrowed .......................................... 000 omitted May 10 Apr. 12 1939 1939 $241,819 $237,298 434,511 428,735 159,331 162,850 20,065 20,684 476,866 477,751 202,466 200,421 0 0 May 11 1938 $237,586 377,690 137,571 18,605 444,409 198,355 23 lowing figures, compiled for the most part by the Bureau o f Labor Statistics and covering all types o f work except construction, show the trends o f employment and payrolls in the Fifth district from March to A p r il: Aggregate deposits in 10 mutual savings banks in Baltimore totaling $220,545,406 reached an all-time high on April 30, 1939, and compared with $219,931,668 on March 31 this year and $219,926,013 on April 30, 1938. The March 31, 1939, total was the previous high point for deposits. u tu al S a v in g s B a n k D e p o s it s : The strike o f bituminous coal miners in the Appalachian region tied up production in W est V ir ginia and in most o f the Virginia mines, and also caused the lay-off o f some thousands o f railroad employees on three lines whose chief freight is coal. It is estimated that around 150,000 men were out o f work and without pay for approximately 6 weeks. A few industrial work ers also suffered from lay-offs or restricted working time on account o f coal shortage, but the strike was settled before industries were seriously affected. A strike in April o f tobacco factory employees involving 2,000 work ers was settled after one week. Cotton textile mills re duced running time about 7 per cent in April, and pay rolls naturally declined in proportion. On the other hand, construction work continued to expand in the Fifth dis trict, giving additional employment to both skilled and unskilled workers in building trades, and miscellaneous industries continued operations at recent levels. The fol E m p l o y m e n t : 0.0 + 3.1 — 4.1 — 39.9 — 2.5 — 2.2 + 1.0 + 1.5 — 2.4 — 36.7 + -2 — .4 Maryland ............... Dist. of Columbia Virginia ................. West Virginia . . . North Carolina . . . South Carolina . . C o m m e r c ia l F a il u r e s : Bankruptcy figures for the dis trict and the United States were reported by Dun & Bradstreet as fo llo w s : PERIODS April 1939 ................... March 1939 ................. ........ April 1938 ................... ........ Number of failures District U. S. 1,140 55 1,123 59 1,172 42 4 Months, 1939 ........ ........ 4 Months, 1938 ......... ........ 247 202 4,489 4,865 Total liabilities District U. S. $ 17,492,000 $ 525,000 17.915.000 560,000 21.147.000 604,000 $2,172,000 3,138,000 $ 67,317,000 103,915,000 e b it s t o I n d i v i d u a l A c c o u n t s : Total debits to de positors’ accounts in 24 Fifth district cities declined sea sonally by 7 per cent in April in comparison with the preceding month o f March, income tax payments in March normally exceeding quarterly payments debited in April. I n comparison with April 1938 debits, those for April 1939 were larger in 17 o f the 24 cities, and the district total showed a small increase, although April last year had one more business day than April this year. D Apr. 1939 c it ie s Maryland Baltimore ........... Cumberland . . . . Hagerstown . . . . Dist. of Col. Washington M Percentage change from Mar. 1939 to Apr. 1939 In amount In number of payroll on payroll STATES . .. Virginia Danville ............. Lynchburg .... Newport News . Norfolk ............. Portsmouth . . . . Richmond ......... Roanoke ............. 000 omitted Mar. Apr. 1939 1938 % of Change Year Month — G 4- 1 + 1 — 6 + 9 + 2 $ 318,990 7,883 8,324 $ 340,906 7,821 8,222 $ 337,582 7,249 8,165 256,489 272,053 253,283 - 6 6,869 12,925 8,411 46,941 4,336 132,807 25,204 7,089 13,439 8,893 50,447 4,260 139,432 30,089 7,000 13,496 7,886 45,774 4,047 133,041 23,297 — 3 — 4 — 5 — 7 + 2 — 5 — 16 — 4 — 11 - 1 — 2 — 4 4- 7 + 3 4- 7 0 + 8 West Virginia Charleston ......... Huntington . . . . 41,855 14,888 45,373 16,366 43,607 16,662 — 8 — 9 North Carolina Asheville ........... Charlotte ........... Durham ............. Greensboro . . . . Raleigh ............. Wilmington Winston-Salem . 11,389 55,815 21,834 17,729 37,586 10,172 36,630 12,035 58,816 26,375 20,422 44,645 10,300 41,275 11,236 50,687 23,580 16,819 35,530 9,753 34,851 — 5 — 5 — 17 — 13 — 16 — 1 — 11 + 1 4-10 — 7 4- 5 + 6 4- 4 4- 5 South Carolina Charleston ......... Columbia ........... Greenville ......... Spartanburg District Totals . 17,669 25,072 18,218 8,812 $1,146,848 16,938 30,428 18,530 ,9,328 $1,233,482 16,181 22,541 16,125 8,017 $1,146,409 + 4 — 18 — 2 — 6 — 7 + 9 + 11 + 13 + 10 0 e g is t r a t io n s of N e w A u t o m o b il e s : Sales o f new passenger automobiles rose further in the Fifth district in April and totaled 20,188 cars, an increase o f 13 per cent over 17,800 cars sold in March 1939 and 43 per cent over 14,092 cars sold in April 1938. The large increases in sales in the Carolinas over 1938 sales reflect steady em ployment in textile industries and payments by the Gov- R 3 MONTHLY REVIEW ernment to farmers under various crop control plans. The following registration figures for new cars were furnished by R. L . Polk & Co., o f Detroit: Registration of New Passenger Cars STATES Maryland ........... Dist. of Col. . . . . V ir g in ia ............... West Virginia . . No. Carolina . . . So. Carolina . . . District .. Apr. 1939 3,735 2,80*7 4,633 2,074 4,669 2,270 Apr. 1938 2,686 1,936 3,383 1,698 3,144 1,245 % Change +39 +45 +37 +22 +49 +82 20,188 14,092 +43 4 Months 4 Months 1939 1938 8,714 13,164 5.921 8,988 13,278 10,611 6,411 5,196 9,733 14,526 8,287 4,876 64,654 7o Change + 51 + 52 + 25 + 23 + 49 + 70 45,051 + 44 C o n s t r u c t io n : The aggregate volume of building pro vided for in permits issued and contracts awarded in the Fifth district in April was slightly less than the work provided for in March, but was materially ahead o f April 1938. Building permits issued in 31 cities in April 1939 totaling $8,579,777 showed declines o f 28 per cent from $11,904,407 in March 1939 and 3 per cent from $8,861,313 in April 1938. Seventeen of the 31 cities reported higher figures last month, but two very large declines in Raleigh, N. C . , and Charleston, S. C., caused the district decline this year. Washington led with permits totaling $2,826,710 last month, Baltimore was second with $1,443,162, and Charlotte third with $873,417. Contracts awarded in the Fifth district in April 1939 totaled $42,008,000, the highest figure for any month since March 1930, and were 67 per cent above contracts totaling $25,114,000 awarded in April 1938. During the first 4 months o f 1939, contract awards totaling $125,620,000 exceeded awards made in the first 4 months o f 1938 by 51 per cent. Figures collected by the F. W . Dodge Corporation by states for April 1939 and 1938 on construction contracts awarded are as follow s: STATES Maryland .................................. Dist. of Col............................... Virginia .................................. West Virginia ..................... North Carolina ..................... South Carolina ................... Fifth District ................... April 1939 $ 6,476,000 9,705,000 9,581,000 3,915,000* 7,536,000 5,350,000 April 1938 $ 6,550,000 1,799,000 5,593,000 4,785,000* 4,636,000 2,451,000 $42,563,000* $25,814,000* % Change — 1 +439 + 71 — 18 4- 63 +118 + 65 * Includes some W . Va, contracts outside Fifth district. C o a l : Very little coal was mined in the Fifth district in April, due of course to the strike in the Appalachian re gion, but mines in states farther west increased output and brought to the surface approximately 10,747,000 net tons, about a third o f probable production had there been no labor trouble. In March this year, before the strike began 35,290,000 tons were mined, and in April 1938 pro duction totaled 21,671,000 tons. Total output of bitumi nous coal this calendar year to May 6 totaled 118,241,000 tons, a higher figure by 6 per cent than! 111,430,000 tons mined to the same date in 1938. Shipments o f coal through Hampton Roads fell to a very low figure in April this year, but shipments from January 1 through M ay 6 totaling 6,550,376 tons exceed shipments of 6,142,373 tons to M ay 6, 1938. Consumption o f reserve stocks o f coal during the strike will probably increase the demand for coal from industries, railroads and wholesale yards until reserves are rebuilt. C o tton T e x t il e s : Cotton textile mills reduced opera tions in the Fifth district about 7 per cent during April below the March level, figured on a daily basis, but ran at a rate 27 per cent ahead o f the April 1938 rate. Last month’s reduction in running time and cotton consump tion was apparently due in part to accumulating inven tories and in part to difficulty in obtaining suitable cotton for spinning. Mill margins narrowed further as spot cotton prices rose without corresponding advances in yarn and gray goods, and trade reports state that most mills producing standard cloth constructions are operating at a loss. Style changes recently increased demand from re tailers for ginghams and other finished cotton dress fab rics, and retail sales o f household goods expanded. Con sumption o f cotton by states in the Fifth district in April 1939, March 1939, and April 1938, in bales, is shown below : MONTHS No. Carolina So. Carolina April 1939 .............................. 140,596 108,766 March 1939 ............................ 169,147 128,110 April 1938 .............................. 109,676 84,296 4 Months, 1939 ..................... 4 Months, 1938 ..................... 615,376 474,004 466,852 362,252 Virginia 10,433 13,385 10,182 District 259,795 310,642 2,04,154 46,708 1,128,936 44,207 880,463 ayo n : Deliveries o f rayon filiment yarn to domestic consumers in April amounted to 23,100,000 pounds as compared with 26,500,000 pounds in March 1939 and 16.300.000 pounds in April 1938. Production o f yarn exceeded consumption last month, and stocks held by pro ducers rose from 41,300,000 pounds on March 31 to 43.800.000 pounds on April 30. Holdings o f yarn on the latter date were not out o f balance, however, and com pared favorably with an inventory o f 65,900,000 pounds on A pril 30, 1938. Rayon Organon for M ay states that reduced consumption in April was due to the depressing effects o f the unsettled foreign situation and to a normal between-season decline in fabricators’ operations. The Organon further says that during the past several months market demand has been especially active for the fine denier rayon yarns as a result o f the continuing high price o f silk, and producers found it necessary to increase pro duction and stocks o f fine denier yarns to requirement levels. The increase in yarn stocks has occurred princi pally in those yarns where the supply was insufficient to meet the demand, and not in those deniers where the sup ply was already adequate. R C otton : Activity in the spot cotton market increased sharply between the middle o f April and the middle o f May, and prices on Southern markets rose from an averCotton Consumed and On Hand (Bales) Apr. Apr. 1939 1938 Fifth district states: Cotton consumed ................... 259,795 204,154 Cotton growing states: Cotton consumed' ..................... 463,528 350,697 Cotton on hand April 30 in Consuming establishments . . 1,087,689 1,416,704 Storage & compresses ........... 12,920,027 10,400,394 United States: Cotton consumed ..................... 546,702 413,169 Cotton on hand April 30 in Consuming astablishments . . 1,292,349 1,699,827 Storage & compresses ........... 12,968,295 10,487,001 Exports of cotton ....................... . 178,225 377,250 Spindles active, U. S..................... 22,109,394 21,772,680 Aug. 1 to Apr. 30 This Year Last Year 2,477,555 2,175,753 4,361,178 3,766,943 ........... ........... ........... ........... 5,150,040 4,430,333 ........... ........... ........... ........... 2,964,098 5,033,829 4 MONTHLY REVIEW age o f 8.32 cents per pound, middling basis, on April 14 R e t a il F u r n it u r e S a l e s : to 9.05 cents on May 12. The futures market continued dull for the most part, but spots were stimulated by a growing scarcity of good cotton outside Government loan stocks, the latter not being available for consumption at present prices. The accompanying table shows cotton in storage and compresses totaling 12,968,295 bales on April 30, but approximately 11,360,000 bales of that amount are impounded. Change in Sales, April & 4 Months 1939 Compared with Compared' with April 1938 4 Months 1938 — 2 Maryland, 9 stores .............................. + 2 Dist. of Col., 7 stores ....................... — 3 + 3 Virginia, 10 stores ............................. — 5 + 3 North Carolina, 4 stores ................. + 14 + 7 South Carolina, 7 stores ................. + 26 + 10 District 38 stores* ..................... .. + 3 + 4 Individual Cities: Baltimore, 9 stores ........................ — 2 + 2 Columbia, 3 stores ......................... + 11 — 12 Richmond, 5 stores ....................... — 11 — 3 Washington, 7 stores ................... — 3 + 3 * Includes 1 store in W . Va. Cigarette manufacture de clined more than seasonally in April and totaled 2 per cent below the level o f April 1938, chiefly due to a strike which closed the factories o f one o f the big companies for a week in April this year. The Bureau o f Internal Revenue reports tobacco products manufactured in April 1939 and 1938 as follow s: W h o lesale T rade, T obacco M a n u f a c t u r in g : Smoking & Chewing Tobacco, Pounds ............. Cigarettes, Number .............= Cigars, Number ......................... Snuff, Pounds ........................... R e t a il T rade i n Apr. 19S9 Apr. 1938 22,618,267 12,269,248,887 403,041,777 3,009,347 24,571,202 12,526,722,723 384,918,261 2,937,411 Change —8 —2 +5 +2 D epartm ent S tores: Net Sales Net Sales Stocks April 1939 Jan. 1 to date April 30, 1939 comp, with comp, with comp, with same period Apr. 30 Mar. 31 April last year 1938 1939 1938 Richmond (3) . . . Baltimore (8) . . . Washington (6) . Other Cities (13) District (30) . — 5.8 — 10.8 — 5.6 - .8 - 7.1 Same stores by States, with 27 stores added: Virginia (13) . West Va. ( 1 0 ) . . . No. Carolina (8) So. Carolina (12) — 4.6 — 5.2 + 4.1 + 15.7 % — 1.9 — 2.5 + 1.1 + 1.4 — .5 - 1.8 — 3.0 + 4.2 +10.0 - .5 — 1.9 + 2.0 + 5.9 + .7 — — + .3 .3 .5 + + 1.1 .2 Ratio April collections to accounts outstanding April 1 31.1 30.6 27.3 29.2 28.9 % STATES Auto Supplies ( 9 ) ......... Shoes (5) ....................... Drugs (12) ..................... Dry Goods (8) ............... Electrical Goods ( 18) . . Groceries (72) ............. Hardware (21) ............. Industrial Supplies (11) Plumbing & Heating (7) Paper & Products (10) Tobacco & Products (9) Miscellaneous (34) ___ Average, 216 Firms. 216 F ir m s : Net Sales Stocks Ratio April April 1939 April 30, 1939 collections comp. with comp. with to accounts April March Apr. 30 Mar. 31 outstanding 1&38 1939 1938 1939 April 1 + 21 — 2 73 + 2 + 2 — 36 — 8 + 12 — 12 58 — 2 — 1 — 1 100 + 2 — 19 — 27 — 18 0 40 + 21 — 11 70 + 4 + 11 — 3 — 10 87 + 7 + 1 — 7 — 1 45 + 2 + 1 — 14 + 2 67 + 7 + 2 — 4 56 + 5 + 3 + 2 „ 4 — 1 — 6 — 14 61 — 5 — 1 — 11 87 + 4 — 5 — 6 61 + 5 + 3 0 — 12 — 1 64 + 3 A g r i c u l t u r a l N o t e s : It is too early in the season to judge probable returns from agriculture in 1939, but some preliminary data on prospects are available. Weather con ditions during the spring were spotted, with too much rain at times and too little at others, and unusually late cool days and nights. On the whole, winter grains have done well, but yields will depend upon how heads fill out. Pastures and hay crops are as good as could be expected, cool weather having retarded growth. Both corn and cotton have; been planted in the lower half o f the Fifth district. Fruit trees escaped winter damage, but frosts in mid-April cut peach prospects very seriously and many orchards will pick practically no commercial fruit. Apple buds appear to have escaped serious injury but little can be said about final apple yields until late June. Farm prices for most products declined gradually during the late winter and spring. (Compiled May 20, 1939) MONTHLY REVIEW, May 31, 1939 FEDERAL RESERVE BANK OF RICHMOND SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) Volum e o f industrial production declined sharply in A p ril reflecting chiefly shutdowns at bituminous coal mines and reduction in activity at textile mills. Retail purchases by consum ers w ere m aintained. INDUSTRIAL PRODUCTION PRODUCTION Index of physical volume of production, ad justed for seasonal variation, 1923-1925 average =100. By months, January 1934 to April 1939. FACTORY EMPLOYMENT AND PAYROLLS Indexes of number employed and payrolls, without adjustment for seasonal variations, 19231925 average=10'0. By months, January 1934 to April 1989. Indexes compiled by U. S. Bureau of Labor Statistics. DEPARTMENT STORE SALES AND STOCKS In A p r il the Board’s seasonally adjusted index o f output at fa ctories and mines w as at 92 percent o f the 1923-1925 average, com pared w ith 98 in M arch and 77 a year ago. In the steel industry production declined in A p r il and the first three weeks o f M ay but in the fou rth w eek ingot output increased to 48V2 percent o f capacity, about the rate prevailing a month earlier. A round the middle o f M ay substan tial concessions were made in prices o f some types o f steel and it is. reported that a considerable volum e o f orders fo r steel w as placed during th is period. A utom obile production in A p ril w as at about the same rate as in M arch, although usually there is some increase, and in M ay output declined ow ing in part to the fa c t that stocks o f new cars w ere la rg er than is usual at this time o f the year. Plate glass production decreased sharply in A p ril follow in g sm aller declines earlier in the year. In the lumber industry output increased som ewhat in A pril, w hile cement production, w hich had risen sharply in F ebru ary and M arch, showed less than the usual increase. Textile production declined sharply in A pril, p a rticu larly at w oolen mills, where output had been at a high level, and in the silk goods industry where fu rth er curtailm ent reflected in part recent high prices fo r raw silk. Output o f shoes showed a, decrease from the high level m aintained du ring th e first quarter o f this year. A t flour mills and sugar refineries activity increased fu rth er, w hile in m ost other non durable goods lines changes in output w ere la rg ely seasonal*in character. Bitum inous coal production w as in small volum e during A p ril and the first h alf o f M ay as most mines w ere closed pending settlem ent o f con tra ct n egotia tions between mine operators and w orkers. A ft e r the middle o f M ay agree ments w ere reached at m ost mines and output began to increase rapidly. P r o duction o f anthracite, w hich had been reduced in M arch, increased sharply in A pril and cru de petroleum production rose fu rther. In the first h a lf o f M ay anthracite production w as m aintained but petroleum output declined somewhat. Value o f construction contracts aw arded, according to the F. W . Dodge Corporation, was larger in A p ril than in M arch, ow in g chiefly to a rise in aw ards fo r public projects. Contracts fo r private construction showed little change in the aggregate as private residential contracts declined, con tra ry to seasonal tendency, while contracts fo r com m ercial, fa ctory , and other private construction increased. In the; first h a lf o f M ay aw ards f o r private w ork increased som e what while the volume o f public contracts declined. EMPLOYMENT Em ploym ent in nonagricultural pursuits declined som ewhat fr o m the middle o f M arch to the middle o f A p ril reflecting a sharp drop at bitum inous coal mines offset in part by seasonal increases in construction and trade. A t fa ctories the number employed showed little change while pay rolls declined considerably be cause o f few er hours o f w ork. DISTRIBUTION Indexes of value of sales and stocks, adjusted for seasonal variation, 1923-1925 average=100. By months, January 1934 to April 1939. In A p ril distribution o f com m odities to consum ers showed about seasonal increase. The B oa rd’s adjusted index o f departm ent store mained at 88 percent o f the 1923-1925 average, about the level that has since last autumn. R ailroad freigh t-car loadings declined sharply ow in g m ainly to a in shipm ents o f coal. Loadings o f m iscellaneous fre ig h t showed less usual seasonal rise. the usual sales r e prevailed reduction than the COMMODITY PRICES P rices o f grains and cotton advanced fro m the middle o f A p ril to the third week o f M ay and there w ere also increases in prices o f silk, hides, and bitum inous coal. Prices o f copper and steel scrap, on the other hand, w ere reduced and substantial concessions w ere granted in prices o f several leading steel products. MONEY RATES IN NEW YORK C ITY BANK CREDIT Vv Total loans and investm ents at reportin g m em ber banks in 101 leading cities, which had increased in A pril, declined during the first h a lf o f M ay. The decline w as at New Y ork City banks and reflected a reduction in loans to security brokers and dealers and redemption o f obligations o f N ew Y ork State and City governm ents. A fte r increasing substantially in A pril, demand deposits at banks in leading cities showed little change in the first h a lf o f M ay. Bank reserves increased fu rth er in M ay to a new high level. TREASURY BONDS ' i, i vl \ . RESERVE BANK DISCOUNT RATE -------------- 1ntAOUnT WUIW "V-v"Viti J vV V v. IEASURY BILLS K L 1934 19^5 1936 1937 1938 ^V*\ 1939 For week ending January 6, 1934, to May 20, 1939. MONEY RATES Prices o f United States Government bonds and notes increased sharply du r ing the last h a lf o f A p ril and the first three weeks o f M ay to new h igh levels. The average yield on long-term T reasu ry bonds declined from 2.34 percent on A p ril 11 to 2.13 percent on M ay 22. Other m oney rates showed little change.
@FedFRASER