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MONTHLY REVIEW o f Financial and Business Conditions F if t h F e d e ra l Z ^ "" nc R e s e rv e D istrict ..... *4 Federal Reserve Bank, Richmond, Va. May 31, 1940 Summary of April Business Conditions B U S IN E S S in April in the Fifth Federal Reserve Dis mills produced about 20 per cent more yarn than in the 1939 month, and tobacco manufacturers turned out more o f all products in A pril than in either the preceding month this year or the corresponding month last year. Construction work provided for in April permits issued and contracts awarded was about the same as in March, but comparison with April 1939 is difficult to make. Per mits issued last month exceeded April 1939 permits by 28 per cent, but on the other hand contracts awarded de clined 25 per cent. However, in April 1939 about half a dozen very large Government contracts were awarded in the Fifth district, and work on several of these is still going on. Labor was employed in larger numbers in April than was the case a year ago in practically all lines o f industry, especially in view o f the fact that the dispute in coal fields last year threw more than 100,000 miners and railroad employees out o f work from a month to six weeks, and a strike against one o f the leading cigarette manufacturers involved 2,000 workers for a week. In agriculture, the crop year is getting off to a very late start, frequent rains and unusually cold weather having delayed plowing and planting, germination o f seed, and development o f growing crops. However, the soil is in excellent condition for rapid growth o f crops when warm weather comes, and no serious damage appears to have been done by late frosts and freezes except to peaches and early truck. It is o f course too early to attempt to draw conclusions on probable yields this year. trict continued on a level o f activity substantially above the level a year ago, but no striking changes oc curred in comparison with March. Most developments during the past month were seasonal in character, and of about normal proportions. A relatively high consumer purchasing power continued to show itself in larger expenditures than a year ago. Department store sales in April were 3 per cent larger than sales in April 1939, even though the occurrence o f Easter in April last year swelled sales o f wearing apparel. Retail furniture sales last month were 28 per cent above April 1939 sales, and wholesale sales by 205 representative firms in many lines averaged 14 per cent more than sales a year ago. Registrations o f new passenger automobiles in the district in April exceeded April 1939 registrations by 32 per cent and were the highest for any month in exactly three years. Debits to individual accounts, rep resenting checks drawn on individual, firm and corpora tion accounts in the banks of 25 leading cities, rose 16 per cent in April over debits in the corresponding month last year. In industry, coal mining was at seasonal level last month, in contrast with the almost complete shut-down in Fifth district mines at the same time last year because o f a labor dispute. Textile mills continued operations in April at about the same rate as in March, and approxi mately 19 per cent ahead o f April last year. Rayon yarn BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT April 1940 Debits to individual accounts (25 cities)........... Sales, 30 department stores, 5th district........... Sales, 37 furniture stores, 5th district................ Sales, 205 wholesale firms, 5th district............... Registrations, new autos, 5th district................ $1,338,001,000 $ 9,181,453 $ 1,178,030 $ 11,385,000 26,726 Number of business failures, 5th district......... Liabilities in failures, 5th district...................... Value of building permits, 30 cities.................. Value of contracts awarded, 5th district........... Cotton Consumption, 5th district (B ales)......... $ $ $ Cotton prices, cents per pound, end of month.. Print cloths, 39 in., 80x80s, end of month......... Rayon shipments, U. S. (P ounds)...................... Rayon yarn stocks, U. S. (P ou nds)..................... Bituminous cool mined, U. S. (T on s).... ............ 48 348,000 10,457,577 31,625,000 309,622 10.60 6.88 30,700,000 11,600,000 32,962,000 April 1939 March 1940 $1,342,709,000 9,918,797 $ 1,054,686 $ $ 11,535,000 21,989 $ $ $ 44 500,000 11,571,518 31,542,000 305,494 10.50 6.50 29,400,000 10,400,000 35,210,000 Change Month Year $1,155,822,000 8,902,566 $ 919,659 $ 9,967,000 $ 20,188 0 — 7 + 12 — 1 + 22 + + + + +- 16 3 28 14 32 55 525,000 8,175,932 42,008,000 259,795 + 9 — 30 — 10 4- 0 + 1 — — + — + 13 34 28 25 19 + 1 + 6 + 4 + 12 — 6 + 20 $ $ $ 8.81 24,000,000 43,400,000 9,627,000 + 28 — 73 +242 MONTHLY REVIEW 2 BANK ING STATISTICS LIAB ILITIES IN BANKRUPTCIES D ECLIN E RESERVE BANK STATEMENT ITEMS Fifth District 000 omitted May 15 1940 ITEMS $ 190 43 0 907 126,155 127,295 217,259 302,841 440,400 77.98 Open market paper ................................ Industrial advances ............................ Government securities ......................... Total earning assets ......................... Circulation of Fed. Res- notes Members’ reserve deposits ............. ...................................... Cash reserves Reserve ratio ............................................ April 15 1940 May 15 1939 $ 175 43 0^ 915 125,871 127,004 218,615 286,730 439,752 78.16 $ 277 0 24 1,172 134,227 135,700 194,239 246,064 374,682 74.27 SELECTED ITEMS— 41 REPORTING MEMBER BANKS Fifth District 000 ITEMS May 15 1940 Loans and discounts .............................. Investments in securities ................... Reserve bal. with F. R. bank . ______ Cash in vaults ........................................ Demand deposits ........ 556,380 Time deposits ................... .. ....... Money borrowed ..................... ............. $269,348 422,485 198,225 20,502 202,146 0 April 17 1940 May 17 1939 $270,688 412,127 184,787 20,754 542,081 201,390 0 $242,518 435,219 161,109 18,610 480,009 202,494 0 Total deposits CITIES DEBITS TO INDIVIDUAL ACCOUNTS Fifth District 000 omitted Mar. April April 1939 1940 1940 Dist. of Col. Washington $ 289,325 $ 287,345 $ 256,489 Maryland Baltimore ......... Cumberland Hagerstown 388,646 8,402 9,313 391,008 8,213 9,326 318,990 7,883 8,324 North Carolina Asheville . . . . . Charlotte ... Durham ........... Greensboro Raleigh ............. Wilmington . .. W inston-Salem 12,581 64,816 26,453 21,352 42,300 11,375 37,979 12,500 69,942 26,575 21,145 44,158 11,325 43,909 11,389 55,815 21,834 17,729 37,586 10,172 36,630 South Carolina Charleston Columbia ............. Greenville .... Spartanburg 19,799 27,947 19,610 11,381 20,651 29,232 20,075 10,921 17,669 25,072 18,218 8,812 Virginia Danville ........... Lynchburg ___ Newport News . Norfolk ............. Portsmouth Richmond ... Roanoke ........... 8,045 15,645 11,733 53,653 4,653 147,832 28,765 8,019 15,844 11,519 51,227 4,479 141,849 28,527 6,869 12,925 8,411 46,941 4,336 132,807 25,204 West Virginia Charleston . .. Huntington . . . . Parkersburg 48,598 17,303 10,495 47,474 17,102 10,344 41,855 14,888 8,974 $1,338,001 $1,342,709 $1,155,822 District Totals . .. % of Change Year Month 1 + 13 - 1 + 22 + 7 + 12 + + 2 — 0 Total Liabilities District U. S. April 1940 ....................... March 1940 ................... April 1939 ..................... 48 44 55 1,291 1,197 1,331 $ 348,000 500,000 525,000 $16,247,000 11,681,000 18,579,000 4 Months, 1940 ............. 4 Months, 1939 ............. 196 247 4,767 5,422 2,011,000 2,172,000 56,679,000 71,953,000 Although the general trend o f employment was slightly upward in the Fifth district in A pril and the first half o f May, not much net change occurred. Certain workers in the building industry such as painters experienced a seasonal upturn in the volume o f work, but in most lines of construction and industry the rate o f operations con tinued at approximately the same level as in March. Employment this year in April and early May was sub stantially better than in the same period last year, the greatest improvement being in bituminous coal fields which were practically closed in 1939 from April 1 to the middle o f May. The following figures, compiled for the most part by the Bureau o f Labor Statistics, reflect the trends o f employment and payrolls in the Fifth dis trict from March to A p ril: Percentage change from Mar. 1940 to April 1940 In amount In number On payroll of payroll STATES + + — — — — Maryland ............... Dist. of Columbia Virginia ................. West Virginia North Carolina . . South Carolina . . — + — — — — 0.1 0.7 0.9 2.1 1.1 0.6 1.1 0.5 1.3 3.7 2.8 0.4 A U TO R E G ISTRA TIO N S C O N TIN U E LA R G E 0 indicates a change of less than ^ April 30 1939 $220,545,406 March 31 1940 $223,163,689 Number of Failures District U . S. PERIODS E M P L O Y M E N T RISES SL IG H TLY omitted M UTUAL SAVINGS BANK DEPOSITS 10 Baltimore Banks April 30 1940 $224,288,123 Business failures in the Fifth district in April 1940 increased over the number in March, but decreased from April 1939, while liabilities involved in April 1940 bankruptcies were lower than in either March this year or April last year. Dun & Bradstreet insolvency figures were as follow s: of 1% , + 1 — 7 — 0 + 1 — 4 + 0 — 14 - 4 - 4 — 2 + 4 + 0 — 1 + + + + + + + 10 16 21 20 13 12 4 + 12 + 11 + 8 + 29 + + + + 17 21 39 14 + + + + 2 5 4 4 + 1 + + + 2 1 1 + 16 + 16 — 0 + 16 + 7 + 11 + 14 + 17 Although automobile sales in the Fifth district, as re flected in new car registrations, were 22 per cent higher in April than in March, the increase was not quite up to seasonal level. However, sales in April exceeded sales in April last year by 32 per cent, all geographical divisions sharing in the advance except the District o f Columbia. More new passenger cars were sold in the Fifth district last month than in any other month since April 1937. Cumulative registration figures from January 1 through April this year were 27 per cent above figures for the first 4 months o f 1939, gains ranging from 2 per cent in the District o f Columbia to 51 per cent in W est Virginia. The following registration figures for new passenger cars were furnished by R. L. Polk & Co., of D etroit: REGISTRATION OF N E W PASSENGER CARS— NUMBER STATES Maryland ........... Dist. of Col. . . . West Virginia . . No. Carolina . . . So. Carolina . . . District ........... Apr. 1940 Apr. 1939 5,112 2,692 7,264 3,335 5,667 2,656 26,726 3,735 2,807 4,633 2,074 4,669 2,270 20,188 % Change + — 4+ + + + 35 4 57 61 21 17 32 4 Months 4 Months 1940 1939 16,781 9,126 18,102 9,664 18,022 10,261 81,956 13,164 8,988 13,278 6,411 14,526 8,287 64,654 % Change + + + + + + + 27 2 36 51 24 24 27 3 MONTHLY REVIEW R E SID E N T IA L C O N STR U C TIO N INCREASES Construction work provided for in permits issued in April 1940 in 30 Fifth district cities totaled $10,457,577, a decrease o f 10 per cent from $11,571,518 for permits issued in March this year but 28 per cent above $8,175932 in A pril last year. Washington led in April with permits totaling $3,797,840, followed by Baltimore with $1,872,246, Richmond with $793,007, Charlotte with $487,257, Charleston, W . Va., with $457,833, and Greens boro with $399,021. Washington permits do not include any Federal Government work. Contracts actually awarded for all types of construc tion in the Fifth district in April were slightly above March contracts in total value, but were 25 per cent below the relatively high April 1939 total. Residential contracts form a much larger part of this year's con tracts, amounting to 52 per cent o f all contracts in April 1940 against only 31 per cent in April 1939. Several Fifth district cities are undertaking housing developments under the U. S. H. A ., and private residential work is more active than in other recent years. F. W . Dodge Corporation figures for contracts awarded in April 1940 and April 1939 are as follow s: CONSTRUCTION CONTRACTS AW ARDED STATES April 1940 April 1939% Change $ 7,924,000 $ 6,476,000 -f- 22 Maryland .......................................... Dist. of Col........................................ 3,744,000 9,706,000 — 61 Virginia ............................................ 8,167,000 9,581,000 — 15 West Virginia ................................ 2,647,000 3,360,000 — 21 North Carolina .............................. 7,350,000 7,536,000 — 2 South Carolina ........................................... 1,793,000_______5,350,000_______ — 66 Fifth District ......................... . . $31,625,000 $42,008,000 — 25 C O A L PR O D U C TIO N DECLIN ES SE A SO N A LLY There was a seasonal decrease in bituminous coal pro duction in the United States from March to April, output declining from 35,210,000 net tons in the earlier month to 32.962.000 tons in the later month. In April 1939 only 9.627.000 tons were mined, the entire Appalachian region being closed while owners and miners negotiated new wage contracts. Total production this calendar year to May 4 of 157,413,000 tons exceeded production o f 117,702.000 tons to the same date last year by 33.7 per cent. Shipments of coal through Hampton Roads ports between January 1 and May 4 this year totaling 8,639,616 tons not only exceeded loadings o f 6,550,376 tons in the cor responding period in 1939, but also were larger than loadings o f 7,674,121 tons in the first four months of 1929, both gains being due in large part to increased ship ments for foreign cargo this year. In the Fifth district, coal mined in April 1940, March 1940 and April 1939, was as follow s: SOFT COAL PRODUCTION IN TONS REGION April 1940 March 1940 April 1939 West V ir g in ia ......................... Virginia ................. : ................ Maryland .................................. 5th District . ................. 9,758,000 1,115,000 110,000 10,983,000 9,964,000 1,134,000 141,000 11,239,000 0 0 0 0 United States ................. % in D is tr ic t................. 32,962,000 33.3 35,210,000 31.9 9,627,000 0.0 C O TTO N M ILL A C T IV IT Y IS REDUCED Cotton cloth and yarn mills in the Fifth district held at about the same level o f activity in April as in March, a level substantially higher than in April a year ago but lower than at midwinter. Reports indicate, however, that operations slowed further late in April and early in May. Output is again exceeding sales, and the backlog o f orders is declining. In some mills stocks are accumulating, but accumulations are not yet excessive. Cloth prices held steady or advanced a little in April, along with spot cot ton, but since the beginning o f May prices o f textiles have softened and cotton has declined about $5 a bale. Con sumption o f cotton by states in the Fifth district in April 1940, March 1940, and April 1939, is shown b elow : COTTON CO N SU M PT IO N -FIFT H DISTRICT In bales MONTHS No. Carolina So. Carolina Virginia District April 1940 ........................... March 1940 ......................... April 1939 .............................. 166,746 163,705 140,596 128,493 129,351 108,766 14,383 12,438 10,433 309,622 305,494 259,795 4 Months, 1940 ................... 4 Months, 1939 ................... 695,109 615,376 531,817 466,852 54,396 46,708 1,281,322 1,128,936 BOTH SHIPMENTS A N D STOCKS OF R A Y O N IN C REA SE Rayon Organon for M ay reports that April deliveries o f rayon filament yarn to domestic consumers amounted to 30,700,00 pounds, an increase of 4.4 per cent over 29,400.000 pounds in March and 27.9 per cent above 24,000,00 pounds in A pril 1939. Total rayon yarn con sumption for the first 4 months o f the current year amounted to 121,000,000 pounds compared with 103,400,000 pounds in the same period last year, an increase o f 17 per cent. In spite o f increased shipments last month, production outran consumption for the fourth consecutive month, and reserve stocks o f yarn held by producers at the end of April totaled 11,600,000 pounds in comparison with 10.400.000 pounds held at the end o f March. The rela tive unimportance of this surplus is indicated by the fact that on April 30, 1939, reserve stocks o f yarn totaled 43.400.000 pounds. Interest has been expressed in the question whether the stoppage o f pulp shipments from Scandinavian coun tries to the United States will affect the rayon industry. The effect will be indirect only, since all chemical dis solving sulphite pulp used by the United States rayon and allied products industry comes from the United States or Canada. Rayon Organon says that the capacity o f the United States pulp producing industry is essentially equal to the task of supplying the total domestic demand, with only a minimum amount o f aid from foreign sources, in this case Canada. C O TTO N PRICES A N D EXPO RTS D ECLIN E Spot cotton prices on 10 Southern markets moved through a range o f only 7 points during April, varying from 10.58 cents for middling grade on April 5 to 10.65 cents on April 26, but in the first half o f May prices dropped sharply to an average 9.58 cents on May 17. E x ports o f cotton also fell off substantially in the first half of May, although they were still above corresponding 1939 figures. Recent developments in Europe closed the markets in Holland, Belgium, Denmark and the Scandi navian countries to American cotton. These countries were not leaders in cotton consumption, but their pur chases were a real factor in the American export market. MONTHLY REVIEW 4 R ETAIL FURNITURE SALES COTTON CONSUMPTION AND ON HAND— BALES Apr. 1940 Fifth district states: Cotton consumed ................... Cotton growing states: Cotton consumed ................... Cotjton held April 30 in Consuming establishments Storage & compresses United States: Cotton consumed ................... Cotton held April 30 in Consuming establishments Storage & compresses Exports of cotton, U. S.............. Spindles active, U. S................... Apr. 1939 309,622 259,795 2,847,797 2,477,555 533,634 459,573 5,069,910 4,361,965 Aug. 1 to Apr. 30 This Year Last Year 1,198,981 1,087,858 10,673,718 12,928,159 623,5 543,187 5,954,728 1,469,617 1,292,565 10,743,002 12,976,432 344,609 178,225 5,152,547 % Change in Sales, Apriland 4 Months in 1940 STATES Maryland, 9 stores .............................. Dist. of Col., 7 sto r e s .......................... Virginia, 10 stores .............................. North Carolina, 4 stores ................... South Carolina, 7 stores ................. District, 37 stores .......................... Individual cities: Baltimore, 9 stores ............................ Richmond, 5 stores ............................ Washington, 7 stores .......................... ................................ ................................ 5,694,962 22,301,218 22,122,902 ___ LINES TO B A C C O M A N U F A C T U R IN G RISES Output o f tobacco manufacturing plants in the United States in April not only exceeded production in April 1939, as shown in the accompanying table, but also in creased over March output by 14 per cent in cigarettes, 7 per cent in cigars, 6 per cent in snuff, and 3 per cent in smoking and chewing tobacco. Part o f the 21 per cent increase in cigarette production last month over April 1939 was due to a strike last year which closed plants of one of the big companies for a week. Bureau o f Internal Revenue figures show production in April this year and last as follow s: April 1940 Smoking & chewing tobacco, pounds ............. Cigarettes, number ................. Cigars, number ....................... Snuff, pounds ............................ April 1939 % Change 25,082,562 14,819,507,680 425,140,424 3,398,017 22,618,267 12,269,248,887 403,041,777 3,009,347 + 11 -+-21 + 5 + 13 R E T A IL A N D W H O LESALE TR A D E DEPARTMENT STORE TRADE Net Sales Apr. 1940 comp, with Apr. 1939 Net Sales Stocks Apr. 30, 1940 Jan. 1 to date comp, with comp, with Mar. same period Apr. 1939 1940 last year — + + + + 3.0 2.4 4.8 6.5 3.1 + 4.9 + 7.0 + 6.4 + 8.8 + 6.6 Same stores by states, with 22 stores added: — Virginia (13) . . . — West Va. (10) . . + No. Carolina (7). — So. Carolina (8) . 2.3 1.5 3.8 4.4 + 4.7 + 11.9 + 9.1 + 8.9 Richmond (3) Baltimore (8) Washington (6) . Other Cities (13). District (30) + 13.2 + 4.6 + 4.8 + 4.0 + 5.7 + + + + + 5.2 1.4 1.2 2.0 1.9 Ratio Apr. collections to accounts outstanding Apr. 1 31.7 32.6 28.9 30.0 30.5 +43 + 7 +32 Compared with 4 Months 1939 +23 + 9 + 5 +12 +19 +15 +23 + 1 + 9 WHOLESALE TRADE, 205 FIRMS 2,964,098 .... Compared with April 1939 +43 +32 +12 +24 + 1 4*28 Auto supplies (8) ........... Shoes (5) ............................ Drugs (13) ....................... Dry Goods (8) ................. Electrical Goods (17) . . . Groceries (59) ................. Hardware (17) ............... Indus, supplies ( 10) . . . Plumbing & heating (6) Paper & products ( 9 ) . . . Tobacco & products (8) . Miscellaneous (45) ......... District Average (205) Net Sales April 1940 compared with Apr. Mar. 1939 1940 + 20 + 1 — 12 — 35 — 5 + 11 + 22 — 12 + 35 + 10 + 16 + 3 + 14 + 1 + 52 — 1 + 23 + 35 + 22 + 21 + 9 + 4 + 10 + 5 + 14 — 1 Stocks Ratio Apr. Apr. 30, 1940 collections compared with to accounts Apr. 30 Mar. 31 outstanding April 1 1939 1940 60 + 13 — 17 55 — 1 85 + 1 +20 — 1 38 69 — 1 + 7 92 + 7 + 1 — 2 47 + 9 + 13 59 + 1 — 7 57 + 1 — 2 74 + 10 89 + *4 72 + ’2 + 9 — 3 66 A G R IC U L T U R A L NOTES Throughout the entire Fifth Reserve district, both farm work and crop growth were retarded during the spring by unfavorable weather conditions. Frequent rains inter fered with plowing and unusually cold weather delayed planting and retarded growth. Frost occurred in some parts o f the district as late as the end o f April, and freezes around the middle o f that month seriously damaged peaches. However, there is an abundant amount o f mois ture in the soil, and when warm weather comes all crops should make rapid progress and in many instances should overcome the late start. Early truck crops will be below normal in yields, and farmers have had to use much more of their reserve hay stocks than usual because o f the late development in pasture grasses, but fall sown grains came through the winter in fair condition, most fruits were not sufficiently advanced to suffer seriously from the April freezes, and the two big money crops, cotton and tobacco, are not much affected by spring weather if good stands o f plants can be obtained later. The outlook for cotton and tobacco growers is highly problematical this season, with large reserve stocks in storage to begin with and so many of American export markets in chaotic condition. (Compiled May 21, 1940) M O N TH L Y REV IEW , M ay 31, 1 9 4 0 F E D E R A L R E S E R V E BANK O F R IC H M O N D S U M M A R Y OF N A TIO N A L B U S IN E S S C O N D ITIO N S (Compiled by the Board of Governors of the Federal Reserve System) Industrial activity w as steady during A p ril a fte r three months o f sharp decline, and in the first h a lf o f M ay increases appeared in some lines, pa rticu la rly steel. P rices o f basic commodities showed m ixed changes tow ard the middle o f M ay, accom panying the extension o f active w a rfa re in Europe, while stock prices declined sharply. INDUSTRIAL PRODUCTION PRODUCTION Index of physical volume of production, ad justed for seasonal variation, 1923-1925 average =100. Durable m anufactures, nondurable m anu factures, and minerals expressed in terms o f points in the total index. By months, January 1934 to A p ril 1940. FREIGHT CAR LOADINGS Index of total loadings of revenue freight, ad justed for seasonal variation, 1923-1925 average = 100. Miscellaneous, coal and all other expressed in terms of points in the total index. By months, January 1934 to Ap ril 1940. DEPARTMENT STORE SALES AND STOCKS The B oa rd’s seasonally adjusted index o f industrial production fo r the month o f A p ril was 102, com pared w ith 104 fo r M arch and 109 fo r February. Steel in got production w as steady during A p ril at sligh tly over 60 per cent o f capacity as com pared w ith an average rate o f 64 per cent in M arch ; in the first h a lf o f M ay output rose sharply and curren tly is scheduled at about 70 per cent o f capacity. Autom obile production in A p ril continued at about the M arch rate, although ordinarily there is an increase at this season, and in early M ay declined som ewhat. Retail sales o f new cars approxim ated production in A p ril and dealers’ stocks o f both new and used cars rem ained at earlier high levels. O utput o f plate glass, used la rgely by the autom obile industry, declined con siderably in A p ril, and lum ber production showed som ewhat less than the usual seasonal increase. In the m achinery, a ircra ft, and shipbuilding industries a c tivity continued at the high rate o f other recent months. In the textile industry activity at cotton and w oolen mills declined some w hat fu rth er in A pril, follow in g considerable reductions in M arch. A t silk m ills activity rem ained at a low level, w hile rayon production w as m aintained at a high rate. O utput at m eat-packing establishm ents continued in large volum e. There w as some fu rth er curtailm ent in shoe production in A p r il; in m ost other industries producing nondurable goods changes in output w ere largely seasonal in character. Coal production, w hich usually declines sh arply in A pril, showed on ly a small decrease this year. O utput o f crude petroleum , w hich had reached record high levels in M arch, w as la rgely m aintained in A p ril and the first h a lf o f M ay, although stocks o f crude oil w ere increasing and gasoline stocks w ere unusualiy large. Value o f construction contract aw ards increased fu rth er in A pril, reflecting prin cip ally a rise in contracts fo r private building, according to figures o f the F. W . D odge Corporation. A w ards fo r private residential building w ere in som ewhat la rg er volume than a year ago. P rivate nonresidential building w as about one-third greater than at this season last year and w as near the previous peak level reached in mid-1937. A w ards fo r public construction, however, w ere considerably below the level o f last spring. DISTRIBUTION D istribution o f com m odities to consum ers showed little change in A p ril and the first h a lf o f M ay. The B oa rd ’s seasonally adjusted index o f departm ent store sales w as 90 per cent o f the 1923-1925 average in A pril, about the level that has prevailed since the first o f the year but below the peak o f 96 reached last Decem ber. Total freigh t-ca r loadings in A p ril w ere in about the same volum e as in M arch. (Shipments o f coal declined less than seasonally, w hile loadings o f m is cellaneous freigh t, w hich include m ost m anu factu red products, showed less than the sharp rise that is custom ary at this season. In the early p a rt o f M ay in creases w ere reported in shipments o f m ost classes o f freigh t. FOREIGN TRADE Indexes of value o f sales and stocks, adjusted for seasonal variation, 1923-1925 average-:: 100. By months, January 1934 to Ap ril 1940. MONEY RATES IN NEW YORK CITY E xports o f United States m erchandise, w hich have been at a high level since last December, declined som ewhat in A p ril. A large p a rt o f the decrease in A p ril w as accounted fo r by the com plete cessation o f shipm ents to northern European countries a fter outbreak o f hostilities there, but declines w ere also reported in shipments to most' other countries. E xports to Canada, the Union o f South A frica , and Fran ce, however, increased. Shipm ents o f com m ercial vehicles declined sharply, follow in g a consider able rise in M arch, and exports o f iron and steel products, w hich had been increasing steadily since last summer, also showed a decline. E xports o f cotton and copper decreased fu rth er from earlier high levels, w hile m achinery and a ir c r a ft shipm ents continued in large volume. D urin g A pril, the m onetary gold stock o f the United States increased by $337,000,000, the largest increase since A u g u st 1939. Acquisitions o f gold in the first tw o weeks o f M ay totaled $169,000,000. COM M ODITY PRICES Prices o f a number o f basic com m odities, which had been declining a fter a rise in A pril, advanced from M ay 10 to M ay 14. Increases in this period w ere pa rticu la rly m arked f o r im ported m aterials, such as rubber, tin, and silk. Grain prices rose at first but subsequently showed sharp declines. P rice changes fo r other com m odities w ere m ixed; steel scrap advanced, while cotton declined con siderably. Prices o f certain steel products, w hich had been reduced early in A pril, w ere restored to earlier levels on M ay 1, and producers announced that steel purchased at the low er prices m ust be taken by the buyers on or before June 30. GOVERNMENT SECURITY MARKET For weeks ending January 6, 1934, to May 18, 1940. Prices o f United States Governm ent securities declined sharply from M ay 10 to M ay 14, accom panying the fu rth er spread o f w ar in E urope. P rices o f long-term Treasury bonds on M ay 14 wT ere 3% points below the high poin t reached on A p ril 2. The yield on the 1960-65 2% per cent bonds rose from 2.26 per cent on A p ril 2 to 2.48 per cent on M ay 14. BAN K CREDIT Total loans and investm ents at reportin g mem ber banks in 101 leading cities increased during the fo u r weeks ending M ay 8. M ost o f this increase w as at N ew Y ork City banks and reflected purchases o f United States G overnm ent obli gations. D eposits and reserves o f banks in leading cities continued at record
