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FED,




RICHMOND

O

A

C

£

M

M ay 1956

Marylai
West Virginia

Virginia

North Carolina

South Carolina

Federal Reserve Bank of Richmond

F if t h

D is t r ic t

T rends

TOTAL CONSTRUCTION CONTRACT AWARDS

CONSTRUCTION CONTRACT AWARDS

20
5

ONE AND TWO FAMILY HOUSES

200
150
100

(1947-1949 =
100)

1948

1949

1950

1951

1952

1953

1954

1955

5
0

(Seosonolly Adjusted)

0

(Seosonolly Adjusted)

___I
______ I....min.

(1947-1949*100)

1956

1948

As a consequence of a sharp rise in contract awards for apart­
ments and hotels and an unchanged level of one- and two-family
house awards which little more than offset declines in other types
of construction from February to March, total construction awards
were 1% higher in March than February on a seasonally adjusted
basis. The March level was 13% smaller than a year ago, and the
first quarter was down 21% .

A

V/#

100 J

J

n

VTV
J

▼

/

V\w > y

7
5

(Sea sonoliy Adju ted)
(19 17-1949*1

.

1
1948

1949

1955

1950

1950

1951

1952

1953

1954

1955

1956

Contract awards for the construction of one- and two-family
houses in March held at the same seasonally adjusted level as in
February. The March level was 7 % under March 1955, and the first
quarter showed a drop of 20% .

RETAIL FURNITURE STORES NET SALES

DEPARTMENT STORE SALES

10
5
15
2

1949

"

10
5
15
2
1 A VvVA IjV
0V
0
/
7
5
0

1
5
0
15
2
10
0
7
5
i 0

1948

1949

1950

1951

A

A

IV% A
V

10
5
15
2

/

/v y*

100

(Sea sonally Adjusted)

.
1952

1953

7
5

(19 *7-l949«l(

1954

1955

1956

1956

The March seasonally adjusted level of sales was 11% higher than
February and 15% higher than a year ago, placing the first quarter
12% higher than last year. The March level of sales came within
striking distance of the all-time peak established in July 1955.

Favorable response in the Easter trade raised seasonally adjusted
department store sales in March 6% over February and 6% ahead
of a year ago, putting the first quarter 8% ahead of last year. The
March adjusted level was close to the all-time high in January.

COTTON CONSUMPTION

On The Cover

140

The North Carolina Department of Conservation and Develop­

120

ment, the South Carolina State Development Board, and the Vir­

100

ginia State Chamber of Commerce kindly provided photographic
material for this issue of the M onthly R eview .

8
0
6
0

Carolina.

Utica & Mohawk Cotton Mills, Inc., Division of J. P.

Stevens and Company, Inc., Clemson, South Carolina.
plant at Gastonia, North Carolina.

0
1948

1949

1950

1951

1952

1953

1954

1955

North Carolina.

1956

Comb yarn

Biltmore Industries, Asheville,

American cotton being unloaded at a foreign port.

Cannon Mills— General offices, Kannapolis, North Carolina— Loom

Mills, over-ali, have a backlog running to the middle of the year,
but cutback in the automobile industry has affected some industrial
products; and March seasonally adjusted cotton consumption in Dis­
trict mills was down 2 % from February and 5 % ahead of a year
ago, with the first quarter up 7 % .




Cover photographs,

clockwise beginning upper left: Cotton picking machine in South

with Dobby mechanism weaving figured cloth.

i2

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May Z956

Cotton and the Fifth District
the fourth time since 1940. This compares with an aver­
age of 1.8 million bales during the 1920’s. The 16%
share of the nation’s production in 1920-24 reflected in
part the lighter average boll weevil damage than for
the country as a whole, and during the next four 5-year
periods, the District accounted for from 11% to 12%
of the nation’s cotton production. Since W orld W ar II,
however, the District’s share declined to 10% in 194549, to 8% in 1950-54, and in 1955 fell to 6 % . Even if
an adjustment is made for the spectacular expansion of
production in the W est (California, Arizona, and New
M exico) since W orld W ar II, the District’s share rela­
tive to the rest of the coun­
try still shows a substantial
downtrend.

has always represented an important part o f
the economy of the area we now know as the Fifth
Federal Reserve District. In the last half century,
however, the absolute and relative importance of cotton
production has declined. Meanwhile, the District’s cot­
ton mill industry has become the largest in the world.
The background of these changes is found in the factors
that determine the world supply of and demand for
cotton.
o tto n

C

World Production Expands

W orld production of cotton totaled 40 million bales
last season. This compares with an average 35 million
during the period 1950-54
and an average 20 million
during 1920-24. Prior to
COTTON FACTS
the middle thirties, produc­
FIFTH DISTRICT AND UNITED STATES, 1950-1954
tion in the United States ex­
ceeded that in all the rest of
Form s G row ing C otton'*'
the world. Continued expan­
District
157,827
sion of production in many
United States 8 64 ,147
Form Incom e From Cotton (* i, 000)
foreign countries has revers­
District
215,028
ed the situation, however,
United Stoles 2,826,019
Acreage H a rv e s te d
(1,000 Acres)
and the United States’ share
District
1,714
of world production averag­
United States 2 2 ,8 6 1
ed only 40% during 1950Yield Per A cre
(Pounds)
District
297
54. In 1955 this country’s
United States
296
share was 36% .
Production
(1,000 Bales)

On a long-time b asis,
world consumption of cotton
has followed much the same
general trend as world raw
cotton p r o d u c t i o n even
t h o u g h carry-over h a s
shown sharp changes over
periods of one or a few
years. The trends in con­
sumption, by growths and
by location of consumption,
are more easily brought into
perspective by comparing
1920-24 with 1950-54. In
the earlier period, world
consumption averaged about
20.2 million bales per year,
11.8 million of which was
American cotton and 8.4
million of foreign growths.
By 1950-54 world consumption had risen to 33.6 million
bales, about 13.5 million of which was American and
20.1 million was foreign. Thus, while total cotton con­
sumption in the world has expanded during the past 35
years, American cotton has accounted for only a small
share of the increase.

•
District
1,060
In actual quantities, the
United States
14,093
large foreign cotton-produc­
Num ber o f A ctive Gins
District
939
ing countries as a group
United States
7,360
have accounted for half the
M ill Consum ption
(1,000 Bales)
District
5,061
total expansion in foreign
United States
9,322
cotton p r o d u c t io n since
* 1954 compared with 1924.
Source: U S. Departments of Agriculture and Commerce.
W orld W ar I. W hen treated
collectively, however, pro­
portional gains are substan­
tially greater in the “ medium-sized” foreign cotton-pro­
ducing countries and much greater in the “ small” coun­
tries.
During the past 35 years, American cotton production
has ranged from as low as 7.9 million bales in 1921 to a
peak of 18.9 million in 1937. Boll weevil damage wr
as
an important factor in limiting American production to
an average of only 11 million bales in 1920-24. The
boll weevil’s depressing effect wr thereafter alleviated
as
somewhat, and production averaged over 15 million
bales during 1925-29. This was the highest of any half­
decade on record and over a million bales above the
1950-54 average.

Consumption in the United States averaged nearly
5.9 million bales in 1920-24. O f this amount, 5.6 mil­
lion bales was domestically produced cotton and about
0.3 million bales imported. Thirty years later during
the period 1950-54, United States consumption averag­
ed 9.3 million bales, 9.2 million of which was American
cotton and 0.1 million of foreign origin.

A t the same time that the United States has lost
ground in world cotton production, both in a relative
and in an absolute sense, the Fifth District has lost
ground relative to the rest of the nation. Last season’s
production in the District was under 1 million bales for



Growth in Consumption

Foreign Use of American Cotton Declines
Outside the United States, ’cotton consumption av­
eraged 14.3 million bales during 1920-24. O f this amount, American cotton represented about 6.2 million

i3

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Federal Reserve Bank of Richmond

any particular degree of accuracy how much cotton con­
sumption has been reduced by the growth in use of
man-made fibers, few would question that it has been
an important factor in the total cotton picture.

bales and the total of other growths 8.1 million. During
the period 1950-54, total consumption in foreign coun­
tries averaged 24.3 million bales. O f this amount, only
4.3 million was American, and 20.0 million represented
other growths.

Fifth D istrict Leads W o rld in C otton C onsum ption

Cotton is still forging ahead in the world as a whole,
but most of the expansion of production has occurred
in foreign countries. Foreign consuming countries are
obtaining an increasing share of their total raw cotton
requirements from countries other than the United
States.

Although it cannot be said to have been a conscious
decision, the District may be thought of as having made
a fortunate choice when it swapped cotton fields for
cotton mills. A s previously indicated, American cot­
ton producers have been losing ground for a number of
years relative to foreign producers. And District cot­
ton farmers have lost ground relative to other American
cotton producers.

World Trade in Cotton Decreases
One very important factor in the declining relative
importance of American cotton in foreign countries has
been the growth of the cotton mill industry in foreign
producing countries. In the early 1920’s the commercial
consumption of cotton outside the United States aver­
aged 14.3 million bales, and world trade in cotton aver­
aged 11.1 million bales, about 10.8 million of which was
imported into foreign countries.

This contrasts rather sharply with the situation in
cotton consumption. Despite the competition from
competitive fibers, United States cotton consumption
has been trending upward and in the period 1950-54
averaged nearly 60% above the 1920-24 level. A sizable
increase also is shown between these two periods in per
capita cotton consumption in the nation. It is signifi­
cant, however, that per capita consumption of cotton
has been trending downward since W orld W ar II while
the consumption of other fibers has continued to expand.

Thus, even if an allowance is made for a decline in
carry-over during the period 1920-24, imports represent­
ed slightly more than 75% of total foreign commercial
consumption. The corresponding percentage for the
1950-54 period was about 50% . In fact, the absolute
level of world trade in cotton has declined from the peak
level of 14.5 million bales per year during the late 1920’s
to an average of 12.2 million bales in 1950-54. The
United States’ share of this world trade also declined—
from 59% during 1925-29 to 34% in 1950-54.

A t the same time that total consumption of cotton in
the United States has been trending upward, consump­
tion in the District has been increasing both absolutely
and relatively. During the early 1920’s, District con­
sumption averaged 2.2 million bales per year or 38%
of the nation’s total. Thirty years later (1950-54) Dis­
trict consumption totaled 5.1 million bales per year, or
54% of the national total. The Fifth Federal Reserve
District is not only the leading area of cotton consump­
tion in this country but actually accounts for a much
greater volume of cotton consumption than any foreign
country.

Production of Man-Made Fibers Equivalent to 10.1
Million Bales of Cotton
Another factor which has affected the demand for
cotton, both at home and abroad, has been the growth
of man-made fibers— rayon, nylon, orlon, dacron, and
the like. Such fibers have carved out a real place for
themselves throughout the world. The fact that they
could be produced domestically has given them an un­
usually strong appeal in countries which had to import
all or most of the cotton they consumed and which ex­
perienced difficulties in obtaining the foreign exchange
they wanted for use in importing raw cotton and other

Both the raw cotton and textile industries are by their
very nature highly competitive, and growth or contrac­
tion is the response to the various economic forces which
have come to bear upon them. Despite the fact that
many farmers have given up the production of cotton,
as indicated by the accompanying chart, many others
still find it a profitable crop. Similarly, even though
American cotton has lost heavily in world markets,
it is still important to cotton-importing countries— al­
though our role in some cases is that of the residual
supplier. Furthermore, from the standpoint of our own
economy, American cotton exports are still of such
significance that a concerted effort is being made to
maintain them at a healthy level. Success of such a
program would enable American cotton to hold perma­
nently to an important place in world markets as well
as to supply the raw cotton needs of an expanding
domestic textile industry.

materials.
During the period 1920-24, world production of
rayon and acetate was equivalent to less than 200,
000 bales of cotton per year. O f this amount, 70% was
produced in foreign countries. During the most recent
5-year period, 1950-54, production of man-made fibers
wT equivalent to 10.1 million bales of cotton per year.
as
Foreign countries accounted for 6.7 million bales, or
66% of the world total, and the United States for 3.4
million bales. W hile it is impossible to estimate with



< 4

$ sc h £& &

May 1956

The Fifth District Stake in Textiles
has been said many times that cotton is king in the
South, but cotton ceased to be king of the field crops
in the Fifth Federal Reserve District in the early 1930’s
when the value of tobacco production passed that of
cotton. Further, the real king for many years, fabri­
cated textile mill products, has made a contribution to
Fifth District economy many times that of lint cotton.
Textiles carry a lot of weight in the Fifth District
economy. Business concerns often refer to their vol­
ume item as their “ bread and butter” product. The
textile industries are the Fifth District’s “ bread and
butter” business. The Fifth District textile industry,
furthermore, is of considerable importance in the textile
industries of the nation.
W hen the fairer sex march in the Easter parade or
“ show” in the ordinary course of events, its an odds-on
bet that any piece of apparel she is wearing, except her
shoes, passed through Fifth District mills in one or
more stages of fabrication.

/

including both textile manufacturing and nonmanufac­
turing states. A little clearer indication of the im­
portance to the several areas of the District is seen by
the state breakdown. Textile mill products accounted
for 59.6% of all manufacturing in South Carolina,
40.7% in North Carolina, 1.4% in W est Virginia, and
11.3% in Virginia.
The contribution of textile mill products manufacture
to the personal income of the Fifth District has varied
in moderate proportion in past years. The greatest
contribution occurred in 1947 when the value added by
manufacture of textile mill products was equal to 10.8%
of personal income. That was the year when whole­
sale prices of textile mill products were in their best
relation to wholesale prices in general of any year since
1926. Since 1947 value added in textile mill products
as a percentage of personal income has been : 1949,
8 .8 % ; 1950, 9 .2 % ; 1951, 8 .2 % ; 1952, 7 .6 % ; 1953,
7.9% . The 1953 percentage was the same as in 1939
but is somewhat higher than the 5.8% of 1929.

The Textile Industries in Perspective

Textile mill products contribution to all manufactur­
ing in the District, based on the value added, has grad­
ually slid from 29.4% in 1947 to 21.7% in 1953. The
1953 figure compares with 24.1% in 1939 and 15.6%
in 1929.

t

The manufacture of textile mill products in the Dis­
trict showed a value added by manufacture in 1953
equal to 7.9% of total personal income. Since the value
added by manufacture in all manufacturing industries of
the District was equal that year to only 36.3% of total
personal income, the 7.9% figure for the District as a
whole takes on considerable significance. Furthermore,
the personal income of Maryland and the District of
Columbia is included in the denominator, but nothing
whatsoever is included in the numerator for these areas.
There is a smattering of textile industries in M ary­
land, but the figures are so small that they have not been
recorded regularly in published information; and, of
course, the District of Columbia has none. Textile in­
dustries in Virginia are not too important in the entire
economy of the state, and they are even less important
in W est Virginia, but in the Carolinas, textiles reign.
The value added by manufacture in textile mill prod­
ucts industries in 1953 was equal to 24.9% of South
Carolina’s total personal income that year, and in North
Carolina the ratio was 18.7% ; in W est Virginia, 0.6% ;
and in Virginia, 3.5% .
The contribution of textile mill products of the Fifth
District to the total manufacturing output stands out in
bolder perspective than its relation to the peoples’
incomes as a whole. The value added by manufacture
in the textile industries accounted for 28.9% of the
total value added in all manufacturing industries in the
four states of the Fifth District which had textile mill
industries reported. The textile mill products indus­
tries in the Fifth District in 1953 accounted for 21.7%
of the total value added by manufacture in all manu­
facturing industries of all states of the Fifth District,



Textile Employment
The textile mill products industries’ importance in
the Fifth District can be put in clearer perspective,
perhaps, by citing various relationships in production
worker employment. There has been absolute growth
in production worker employment in the textile indus­
tries of the Fifth District in each census interval since
1929. The 1953 level was 8.6% higher than 1947,
25.6% higher than 1939, and 81.5% higher than 1929.
Despite these increases, however, textile mill prod­
ucts industries have not kept apace of the industrial
growth in Fifth District states. In 1939 production
workers in textile mill products industries accounted for
51% of all production workers in manufacturing indus­
tries in the four states in which textile mill products
are found. They accounted for 40.9% of all produc­
tion workers in all states of the District and the District
of Columbia in that year. By 1949 textile mill products
industries production worker employment had dropped
to 41.8% of the total in the four states and to 33.9%
in the entire District.
Textile mill products industries in the United States
have not been growing as they have in the Fifth Dis­
trict but have remained in a fairly static position since
1929. In that year, production workers employed
amounted to 1,096,000 workers ; in 1939, they numbered
1,082,000; in 1947, 1,147,000; and in 1953, 1,060,000.
The proportion of these workers in the Fifth District,
however, has shown a continuous rise throughout this
* 5 1
1
*

Federal Reserve Bank of Richmond

The Fifth District’s dominant position is shown again
in the cotton textile industry, with this area having
53.1% of all the spinning spindles in place in the United
States. The District has a very substantial position in
the rayon and acetate spinning equipment with 41.4%
of all the spindles operating on these fibers. It has
12% of the wool ring-spindles, 5.2% of the wool mulespindles, and 9.6% of the worsted spindles. O f the
twisting spindles used on all types of yarns, the Fifth
District has 43.7% of the nation’s total.

period. In 1929, the District had 23% of the nation’s
textile production w orkers; in 1939, 28.4% ; in 1947,
31.0% ; and in 1953, 36.4% .
Although textile mill products industries were not as
important relatively in 1953 as in 1939, there has been
little change in the proportion of textile workers in the
Fifth District to all production workers in manufactur­
ing industries since 1947.
Textile mill products industries in the Fifth District
are most importantly located in North Carolina and
South Carolina and to a considerably less extent in V ir­
ginia, with a trace of representation in W est Virginia.
In 1953, North Carolina had 20.5% of the production
workers in the United States textile mill industry com ­
pared with 17.5% in 1947, 16.8% in 1939, and 14.7%
in 1929. South Carolina in 1953 accounted for 12.2%
of the nation’s textile mill products production workers
compared with 10.4% in 1947, 8.8% in 1939, and 6.9%
in 1929. Virginia’s 1953 proportion was 3.4% ; 1947,
2 .7 % ; 1939, 2 .6 % ; and 1929, 1.3%. W est Virginia’s
share was less than a half of one per cent in any of the
years under comparison.

The Fifth District’s position in looms is somewhat
less impressive than in spindles, but this is probably
not true in their production capacity. The lion’s share
of the new up-to-date and faster looms put in place in
the postwar period probably give Fifth District mills a
better representation in total cloth output of the nation
than the number of looms in place would indicate. Of
the wide looms on cotton in 1955 in the nation, the
Fifth District mills accounted for 52.0%. The District
had 38.2% of the wide looms operating on rayon and
acetate yarns, it had 10.6% of the woolen looms, and
18.1% of the worsted looms. The Fifth District is not
importantly represented in the types of goods made on
narrow looms. In 1955 it had 10.0% of the looms on
these fabrics and 2.9% of the braiders.

W hat are the District’s Textile Mill Products
Industries?
Textile mill products manufacture includes the carding
and combing of cotton, wool, and synthetic fibers; spin­
ning and weaving of cotton, woolen and synthetic yarn ;
the knitting of all types of ya rn ; dying, bleaching, and
finishing of all types of textiles, carpets and rugs, hats,
and miscellaneous textile goods, such as felt, lace, pad­
ding, upholstery filling, process waste, coated fabrics,
jute and linen, cordage and twine, and all other textiles
not elsewhere classified.
The Fifth District has representation in practically
all of these. It is not too important, for example, in the
lace trade or in the hat business, but is a dominant
factor in the cotton and synthetic textile industries; it
rates importantly in the woolen and worsted industries
and in the knitting industries of all varieties.
It is not possible to trace the growth in production
of the various textile products, for these figures are not
reported on a regional basis. There are records on the
cotton textile industry, and the bulk of the growth in
the synthetics industry has been in this area. Mention
of these is made in another article. Meanwhile, some
idea of the importance of the various industries can be
found in the location of the machinery used to process
the various types of textiles, based on material avail­
able in the American Textile Reporter.
Beginning at the beginning of the manufacturing pro­
cess, it is found that the Fifth District in 1955 had
57.7% of the cotton carding machines, 40.1% of the
rayon and acetate cards, 5.8% of the woolen cards, and
6.9% of the worsted cards in the United States. Of
the combing equipment, the Fifth District had 49.6%
of those on cotton, and 1.9% of the Bradford System
worsted combs.



Fifth District representation in machinery used
in the knitting industry finds it with 5.9% of ma­
chines knitting outerwear, 10.0% of those knitting un­
derwear, and 48.0% of these knitting hosiery. Again,
these figures probably give the District an under-rep­
resentation in the industry, particularly in the hosiery
industry, for here, the great bulk of the improved ma­
chinery in postwar years has gone into Fifth District
mills.
Changes in the Fifth District position in the cotton
textile industry can be seen over time from the number
of spindles in place relative to the national total. In 1955
Fifth District mills had 58.6% of the cotton system
spinning spindles in place. This is the highest percent­
age of the national total in any year of record. It com­
pares with 53.5% in 1950, 50.4% in 1945, 48.5% in
1940, 37.0% in 1930, and 29.3% in 1920.
Terms of Trade
Prices of fabricated textiles rose to their most favor­
able position in the nation’s price structure in the three
years 1946-48. Since that period the ratio of textile
prices to all prices has been declining. The ratio of
cotton goods wholesale prices to all wholesale prices,
based on indexes having 1947-49=100, improved from
65% in 1940 to 108% in 1947 but weakened to 78% in
1955.
This is an important consideration in the profitability
of textile manufacturing, which in turn has other im­
portant repercussions. It is also an important consider­
ation in determining the industries’ financial ability to
acquire the most modern machinery available.

{

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1956

Financing the Textile Industry
sented by long-term debt and ownership interest in the
third quarter of 1948. A t the end of the third quarter
of 1955 (latest data available) the creditorship interest
had risen to 11.2%.
This increase in the extent to which the textile indus­
try is trading on its equity— using long-term debt— ap­
pears to have been about as much of an increase as was
possible in view of the profits record of the industry.
Am ong 23 major manufacturing industries, textile mill
products had the lowest rate of profits after taxes on
stockholders’ equity in 10 of the 15 quarters from the
beginning of 1952 through the third quarter of 1955.
In four other quarters it had the next-to-lowest rate of
return, and in one quarter its rate was the third worst.
In none of the 15 quarters was the rate of return under
5% .
In the case of net profits after taxes as a percent of
sales, textiles had the lowest rate among the 23 indus­
tries in four of the 15 quarters and was never better
than fourth worst in 13 of the 15 quarters. Its best
achievement was with a rate that was the sixth lowest.
This is hardly a record to facilitate the sale of cred­
itorship securities by an industry that, although the most
efficient in its line in the world, must continue to make
multi-million dollar outlays for the replacement of old
and obsolete buildings and machinery, spend large
amounts for research in developing new methods and
new products, and incur heavy expenses in widening
its domestic market and in meeting severe foreign com­
petition.

n a d e q u a t e earnings, eating into capital, and in­
creased dependence upon borrowed funds have mark­
ed the financial developments of the textile mill pro­
ducts industry in the United States in recent years.
Unfortunately, this is an often-repeated story in the
history of this vitally important industry.

/

A s a result in part of a lower level of sales in two
of the last three years, retained earnings of the textile
industry covered only a little more than one-fourth of
total capital outlays by the industry in the period 195355. In 1953 and 1955, retained earnings amounted to
about 50% of capital expenditures, but in 1954 cash
dividends exceeded net profits, and there were no earn­
ings available for reinvestment. The absence of earn­
ings in the latter year together with the inadequancy of
depreciation allowances to meet capital outlays led the
textile industry to draw heavily on liquid asset hold­
ings. In fact, reduction of cash and government se­
curities constituted the second largest single source of
funds in 1954. A s in the other two years, depreciation
allowances provided the largest source of funds and
were within 5% of the total invested in plant and equip­
ment over the three-year period.
Another important internal source of funds for the
textile industry— which is to say is mainly the cotton
textile industry— has been the liquidation of inventories.
Stocks were reduced in 1953 and 1954, providing the
second largest source of funds in the former year and
the third largest in 1954. Reflecting a more favorable
situation for the industry, inventory liquidation was
superseded by some accumulation in 1955 and thus con­
stituted a sizable use of funds that year.

M AJOR SO U R CES A N D USES OP F U N D S
T E X T IL E M IL L P R O D U CT S M A N U F A C T U R E R S

For the three-year period the principal— practically
the onlv— external source of funds was split equally be­
tween the sale of long-term debt securities and short­
term commercial bank loans. The combined capital
stock and capital surplus accounts (not available
separately) showed a decline in the last three years,
and both long-term bank debt and funds from trade
suppliers were reduced.
In 1955, however, increased requirements stemming
from inventory accumulation and extension of credit
to customers led to increases in both short and long­
term debt. Short-term bank loans rose sharply to the
highest level in five years. Another external source
of funds that became available in 1955 for the first time
in three years was credit on open book account.

(Millions of Dollars)
1955
Sources
Depreciation Allowances _______________
Retained Earnings ____________________
Other Changes in Earned Surplus1 ___
Accrued Federal Income Taxes ________
Capital Stock, Capital Surplus, Minor­
ity Interest, and Other Reserves ___
Long-term Debt
N on-bank____________________________
B a n k ________________ ______ __________
Short-term Bank Debt ________________
Other Accounts— Notes Payable _____
Other Liabilities _______________________
Uses
Property, Plant and Equipment
Inventories ---------------------------------Liquid Assets ------------------------------Other Assets ____________________
Gross Uses (Sources) 2 __________

Emphasis on Equity Investment

1953

Total

— 131

21

640

266
137
— 108
67

247
— 48
— 55
— 172

245
142
— 179
— 71

758
231
— 342
— 176

— 88

— 21

60

— 49

56
16
203
171
30

50
— 20
— 67
— 63
18

17
— 17
— 16
— 130
— 30

123
— 21
120
— 22
18

750

-1 3 1

___21_

250
202
— 28
331
974

268
-1 4 1
— 189
— 68
713

279
— 160
— 37
— 64
725

640
797
— 99
—254
199
1603

1 Represents items that cannot be identified to permit adjustment
to proper account.
2 Gross uses include negative sources; gross sources, negative uses.
Third quarter 1955 latest data available; third quarter data used in
each year.
Details may not add to totals because of rounding.
Source: Quarterly Financial R eports fo r M anufacturing Corpora­
tionsi, FTC-SEC.

The ownership interest in the textile industry has
been declining slightly, and the creditorship interest has
been rising slightly over most of the postwar period.
According to F T C -S E C data, borrowed funds ac­
counted for only 7.6% of the total investment repre­



1954

750

i

1 I*

Federal Reserve Bank of Richmond

Bank Loans to Manufacturers of Textiles, Apparel, and Leather
the Fall of 1955 a survey was made with the co­
operation of a number of the District’s member banks
to determine the principal characteristics of their loans
to commercial and industrial business firms. One of
the categories of business borrowers about which infor­
mation was sought was textiles, apparel, and leather
processors. This category has been included for several
years in the weekly reports of loan changes by a group
of sixteen of the District’s member banks. In this Dis­
trict, the category is made up predominantly of textile
and apparel firms, and of these it is generally believed
that the textile group is much the larger of the two. The
description of this category of loans at District member
banks throws some light on the use of bank credit by
textile and apparel firms in the area.
According to the survey, textile and apparel firms
were indebted to District member banks to the tune of
$82,543,000 on October 5, 1955. They had a larger
total volume of bank credit outstanding on this date
than any of the other types of manufacturing and mining
concerns; and they accounted for 7% of the total of all
business loans outstanding at that time at the District’s
member banks. The behavior of these loans since last
October can be approximated since, as stated, sixteen
of the larger banks in the District report weekly the
major changes in this and other categories of business
loans on their books. The survey revealed that the
fourteen largest member banks in the District— each
with deposits in excess of $100 million— had loans to
textile and apparel firms amounting to $58.5 million on
October 5, 1955. Applying the changes reported by
the sixteen weekly reporting banks to this outstanding
figure, textile and apparel firms had, by the year’s end,
reduced their loans by $1.4 million to $57.1 million.
From the beginning of this year through April 11, these
firms added an additional $8.1 million to their bank
loans bringing the estimated total to $65.2 million. This
gives an estimated increase in textile and apparel loans
outstanding over the first three and a half months of
the year of just about 14%. Using these same esti­
mated figures, the increase over the first three and a
half months last year was $14.2 million. The estimated
amount outstanding at the beginning of last year was
$47.6 million; accordingly, the $14.2 million represents
an increase of almost 30% for that period.
The pattern of borrowing by textile and apparel firms
in the Fifth District, as revealed by the weekly reports
of the sixteen member banks, is for a relatively strong
increase to occur over the first three to three and a half
months followed by a moderate reduction in balances
outstanding over the next three to four months. The
pattern is not as marked in the remainder of the year,
but in both 1954 and 1955 these firms increased their
bank loans at the sixteen banks from about midsummer
into the early Fall and then, on balance, made repay­

/

n




i

ments through the end of the year. The year 1955 was
unusual for textile and apparel borrowers in the Dis­
trict in that they borrowed considerably more new mon­
ey in the first quarter than in any year since this series
was started (19 51 ). The first quarter of 1956 was
second only to the record 1955 increase.
The October 5, 1955 survey revealed a number of
other interesting characteristics of loans to the textile
and apparel group of business borrowers. It indicated
that 95% of the dollar amount of loans to these firms
was to incorporated businesses. By way of contrast,
82% of loans outstanding on the survey date to all
manufacturing and mining firms was to incorporated
concerns. The textiles and apparel group had a higher
percentage of incorporated firms than any of the other
groups making up the manufacturing and mining cate­
gory. Manufacturers of metals and metal products, for
example, showed 83% of the borrowing firms to be in­
corporated. Petroleum, coal, chemicals, and rubber
processors were incorporated firms in only 54% of the
cases.
In spite of the fact that 95% of the dollar amount of
textile and apparel loans was to incorporated firms,
only 70% of the actual number of loans was to this
incorporated group. The contrast is even sharper for
all member banks in the United States. Ninety per
cent of the dollar amount of their loans to this group of
borrowers was to incorporated firms while only 59%
of the number of loans was to these firms.
O f the $82.5 million of District member banks loans
outstanding to textile and apparel firms on October 5,
1955, $68.3 million— 8 3 % — was borrowed on a short­
term basis (maturing in one year or less). This is
typical of the manufacturing and mining category of
borrowers, the average for all loans in this group being
81% in the form of short-term loans. The average
interest rate charged textile and apparel borrowers for
short-term money was 4.23% . The average rate for
longer term borrowing by this class of borrower in the
District was 5.41%.
The textiles and apparel group of borrowers in the
District had 70% of the dollar amount of their total
member bank indebtedness with the fourteen banks hav­
ing deposits of $100 million or more. Only 40% of
the number of loans made by these firms was with
these larger banks. As would be expected, because of
legal limitations on the size of an advance to a single
borrower and because of the more diversified services
provided by the larger banks, the larger loans of textile
and apparel borrowers are placed with the larger banks.
The size of the average loan outstanding on October 5,
1955 at the banks having deposits over $100 million was
just over $100,000. The average size of each textile and
apparel loan for District member banks with deposits
under $100 million was $30,000.
8 1
*

of/ M
lf

&

f$ X K 6 U J L

May 1956

The Fifth District Stake in Man-Made Fibers
The total mill consumption of all fibers has been
showing moderate growth. In 1955 they were 11%
above the 1954 recession level, 3.9% higher than 1952
but 2.3% under the war-stimulated year 1950; 4.4%
higher than 1948; 36% above 1940; 116% above 1930;
and 109% above 1920.

quest for silk and spices carved out the camel
caravan routes between Europe and the Far East,
and these later served as the invasion routes of Genghis
Khan and Tamerlane. The impelling force of a better
trade route to the Far East resulted in the discovery of
America when Columbus sailed westward to India.
Silk had for ages been an object of desire and its at­
tainment a mark of arrival. For several years follow­
ing W orld W ar I, the period known as the silk shirt
era found great clamor among the populations of those
countries that had come through the first W orld W ar
in sound economic condition to be adorned in silken
things. Such was the stimulus to the expansion of
“ artificial silk” which had been established on a com­
mercial basis in this country in 1910 by the American
Viscose Corporation at Marcus Hook, Pennsylvania.

T

he

A s shown by the table, the gains of synthetics as a
percentage of total fibers have come mainly at the ex­
pense of cotton ; and in absolute terms, mill consumption
of cotton has shown no gain since W orld W ar II,
backing and filling around a flat trend.
Mill Consumption of Fibers
% of total
Cotton
1920
1930
1940
1950
1955

In 1911 this infant industry turned out 400,000
pounds of artificial silk; and by 1924, when the name
of the product had been changed to rayon, total United
States production amounted to 36,000,000 pounds. The
number of producers in the industry, as well as the
types of yarns manufactured, grew rapidly even through
the great depression of 1929-1933. The industry served
basically the apparel and drapery fabrics uses until the
emergence of the second W orld War, when its uses
began to branch out in a fairly substantial way for in­
dustrial purposes; and such uses have been primarily
responsible for growth in the rayon and acetate indus­
tries since the second W orld W ar. Noncellulose syn­
thetic fibers have come into being since 1940. First
came nylon, a magic word which on a label could clear
the retail shelves of any article. Many other fibers and
monofilaments have come into being in the postwar
period. All serve purposes for which silk was not suited.

Other
Syntheti c

Wool &
Other

88.3
84.5
80.6
68.5
65.7

0.3
3.9
9.8
19.8
21.3

__
0.1
2.1
6.5

11.4
11.6
9.5
9.6
6.5

Synthetics in the Fifth District
The importance of synthetic textiles to the Fifth Dis­
trict is tw ofold: first, the Fifth District has an im­
portant, probably a dominant, part of the production of
synthetic yarns in the United States; and secondly, it
has developed a substantial position in the nation as a
whole, and probably the dominant position for any
given area of the United States, in the spinning and
weaving of synthetic yarns. Published information is
inadequate to pinpoint the District’s position in either
instance.
Some idea of the District’s importance can be found
in the 1954 Census of Synthetic Fibers, which shows a
value added by manufacture in that year of $720 mil­
lion, of which 88.9% was located in the South and
37.6% was located in the state of Virginia. Included
in the South’s figure, but not segregated, are the im­
portant synthetic yarn plants at Cumberland, M aryland;
Rock Hill, Camden and Anderson, South Carolina;
Parkersburg and Nitro, W est Virginia; Enka and
Kinston, North Carolina. If the value added by manu­
facture in these plants could be added to that of V ir­
ginia, it is probable that the total would put the Fifth
District’s position somewhere around two-thirds of the
national total.

Competitive Position
It is generally assumed that synthetic fibers have
supplanted cotton or wool to attain their present posi­
tion ; or to put it the other way around, it is assumed
that cotton or wool would have shown the same degree
of expansion as has the consumption of all fibers in the
absence of synthetic fibers. It certainly can be shown
that rayon tire cords have displaced cotton cords in
motor car tires, and it can be shown that many products
formerly made of cotton are now made with synthetics.
It doesn’t necessarily follow, however, that had cotton
and wool been the only fibers, total fiber consumption
would be as great as the total at the present time.
There is little doubt that some of the synthetic fibers
have stimulated total usage, and it is almost certain that
they did stimulate the chemical treatment of cotton
fibers to make these fibers an entirely different product
from what they were before.



Rayon &
A cetate

The growth in value added by manufacture of syn­
thetic fibers between 1947 and 1954 was 66% for the
United States. Virginia showed an increase in this
period of 96% ; the South, other than Virginia, an in­
crease of 69% ; and the rest of the United States, an
increase of 5% .

i

9

y

Federal Reserve Bank of Richmond

Business Conditions and Prospects
were in evidence in the Fifth Dis­
trict economy during March, with the trade sector
giving the major portion of the strength in relation to
February. The output of mines and factories lessened
moderately, while new projected construction was about
even with February. Demands for bank credit were
unusually strong for this season of the year with the
emphasis centered mainly on business and consumer
credit. The saving’s rate improved somewhat in com ­
mercial banks, but held steady in the mutual savings
banks of Maryland. The Spring apparel season has
not come up to expectations, and both converters and
cutters have slowr
ed operations. This has found re­
flection in further cutbacks in the synthetic weaving in­
dustry and some reduction in backlogs of the cotton
textile industry. The greatest impact of the dollar
minimum wage is shown in the average hourly earn­
ings of the lumber, apparel, and food industries. The
new minimum may also have been partly responsible
for a reduction in hours worked at overtime.
ro s s c u rre n ts

C

Trade
The last week of March brought a good response in
the Easter trade, which raised the seasonally adjusted
sales of department stores in the month close to the
peak level of January. March sales were 6% higher
than February, after seasonal correction; 6% ahead of
a year ago; with the first quarter 8% higher than last
year. The usual apparel items worn in the Easter
parade were primarily responsible for the March show­
ing, with most items of housefurnishings trailing the
level of a year ago. The March trade level wr ap­
as
parently somewhat better than had been anticipated,
and store inventories, after seasonal correction, were
reduced 2% from the February level. March inven­
tories were 10% ahead of a year ago, compared with a
rise of 6% in sales.
Furniture sales in department stores dropped 6% be­
low a year ago in March, but the retail furniture stores
showed a different performance. March sales on a
seasonally adjusted basis were 11% higher than Feb­
ruary and 15% ahead of a year ago, bringing the first
quarter to a level 12% ahead of last year. The March
adjusted sales level came close to the all-time peak es­
tablished in July 1955. Furniture stores were still
exercising a cautious inventory policy in March when
the adjusted level for that month dropped 6% from
February and was only 5% ahead of a year ago, com­
pared with a 15% increase in sales.
Sales at household appliance stores took a consider­
able spurt in March, not seasonally adjusted, but failed
to show anything like the gains made by furniture
stores. The March sales level was 11% above Feb­
ruary and 2% over a year ago, with the first quarter
up 4 % .



i

Complete registrations of new passenger automobiles
for all states of the District and the District of Columbia
in February were 1% higher than January, 5% higher
than a year ago, bringing the two months’ figure to 11%
ahead of a year ago. March registrations for Virginia,
West Virginia, and North Carolina show an increase of
8% over February but were 6% under March 1955
registrations. First quarter figures for these states were
up 4 % . Commercial car registrations for the same
states in March were down 5% from February but 15%
ahead of March 1955, with the first quarter up 23% .
Construction
Total construction contract awards in March, sea­
sonally adjusted, were 1% higher than in February
and 13% belowT March 1955, with the first quarter
down 21% . Awards for apartments and hotels in
March were more than doubled from February on a
seasonally adjusted basis, and those of one- and twofamily houses remained at the February level. All other
types of construction awards were lower in March than
in February, with commercial construction down 19%,
public works and utilities down 20% , manufacturing
down 3 % , and all types of residential construction down
5% . March construction awards compared with last
year show only factory construction above, with all
other types down from 7% to 58% .
The value of building permits in 36% cities of the
District were down 9% in March from February, after
seasonal correction, and 20% under March 1955, with
the first quarter down 15%.
Bituminous Coal
Although W inter returned in April, March was an
unseasonably warm month, and this had a moderate
retarding effect on the production of bituminous coal
in this District. March output on an average daily
basis was 2% smaller than February but 21% ahead
of a year ago, bringing the first quarter 23% higher
than last year. Coal exports were maintained at a high
level in March and might have been even higher except
for a longshoreman’s strike in the Hampton Roads area.
Public utility consumption of coal in February showed
a larger year-to-year gain than was shown in kilowatthour output. Sizable gains over last year are being
shown in coastwise shipments of coal both to New Eng­
land and inside the Capes from both Hampton Roads
and Baltimore ports.
Manufacturing
Man-hours in all manufacturing industries of Virginia
and the Carolinas in March were down 1.7% from Feb­
ruary but 0.6% ahead of a year ago.
Durable goods industries in these states show a drop
of 2.4% for the month of March, with that month up
10 1
*

f o
/

n

M

/f f a n e u j L

May 1956

1.7% from a year ago. Most durable goods industries
show some backdown in man-hours during March, but
the chief decline came in the lumber and wood products
industries.
Man-hours in the nondurable goods industries of
these states were down 1.3% from February to March,
with March at the same level as a year ago. All divi­
sions of the textile industry showed some reduction,
with yarn spinners and knitting mills showing the larg­
est declines. Gains in nondurable goods industries were
shown in the cigarette, paper, and chemical industries.
Cotton consumption in the District mills on a season­
ally adjusted basis dropped 2% from February to
March. March remained 5% ahead of a year ago, and
the first quarter was up 7 % . Spindle hour operations,
adjusted, showed no change from February to M arch;
they were 6% ahead of a year ago, and the first quarter
was also up 6 % .
February cigarette production remained at the same
seasonally adjusted level as January; but was 4 % ahead
of a year ago, with the first two months of the year up
8% from last year. Virginia cigarette output in March,
according to the Richmond Chamber of Commerce, was
8.2% higher than February and 3% ahead of a year ago.

Commercial, industrial, and agricultural loans of the
weekly reporting banks reached an all-time high late
in March and have moved still higher in three wreeks
of April. “ Other” loans, w^hich are largely consumer
loans, established a new high level early in April and
have shown some hesitation since. Loans on real estates,
after dropping from Fall to early January, have since
held pretty steady around this reduced level.
Minimum W age Effects
The information is not yet available to discuss con­
sequences of the change in the minimum wage from
75 cents to $1 on March 1, but some idea as to where
its effects were felt can be seen in the average hourly
wage data which are available for March in Virginia,
North Carolina, and South Carolina.
Average hourly earnings in all manufacturing indus­
tries in Virginia during March rose 4 cents over Feb­
ruary or 2.7% . In North Carolina the rise was 4 cents
an hour or 3% ; in South Carolina it was 3 cents an
hour or 2.3% .
In the lumber and wood products industries, North
Carolina’s average hourly earnings in March were 9
cents higher than in February for an 8.2% increase.
In these industries in South Carolina, the average hour­
ly earnings were 12 cents higher, which was 12.1%.

Agriculture
Farm prices during March declined by 1.0% to 1.9%
in the states of this District. All states show prices
under a year ago, ranging from 0.4% in W est Virginia
to 6.1% in Maryland.
Cash income from farm marketings in February was
at the same level as a year ago, with crops and livestock
products each showing the same level as last year. In
the first two months of the year, total cash income was
down 2% from last year, with crop income down 7%
and income from livestock and products at the same
level as last year.

Average hourly earnings in apparel industries of V ir­
ginia were 9 cents higher in March than February, or
8.6% ; in North Carolina up 10 cents, or 9.4% ; and in
South Carolina up 14 cents, or 14.0%.
The impact of the change in the minimum wage on
the seamless hosiery industry was considerably smaller
than had been anticipated, with the average hourly earn­
ings in North Carolina in March 5 cents higher than
in February, or 3.9% . Full-fashioned average hourly
earnings wrere 2 cents higher in March than February,
which was 1.3%.
Average hourly earnings in the tobacco manufactur­
ing industries of Virginia were 8 cents higher in March
than in February or 5.4% ; in North Carolina they were
up 10 cents or 6.6% . Most of this came at the stemmeries and redryers, because cigarette average hourly
earnings were up only 1 cent in Virginia or 0.6% ; and
up 5 cents or 2.9% in North Carolina.

Banking
Loans and investments of member banks in the Fifth
District rose $29 million during March. Loans were
up $70 million, which was in part offset by a reduction
of $32 million in United States Government security
holdings and a reduction of $9 million in other security
holdings. Loans and investments were $213 million
higher than a year ago, with loans up $354 million,
United States Government obligations down $150 mil­
lion, and other security holdings up $9 million.
Total deposits at the end of March were $59 million
higher than a month earlier and $252 million higher
than a year ago. Time deposits were up $27 million
during the month and up $46 million during the year.
Demand deposits were $32 million higher during the
month and $206 million higher during the year.
Member bank borrowings dropped $51 million dur­
ing March and were $31 million smaller than a year
ago. Declines occurred both at the Federal Reserve
Bank and at correspondent banks.



i

Average hourly earnings in the food industries of
Virginia were up 6 cents between February and March
or 4.5% ; in North Carolina up 8 cents or 7.5% ; and
in South Carolina up 10 cents or 8 .5 % .Hourly earn­
ings in textile mill products industries rose 2 cents from
February to March in North Carolina, which was 1.5%.
There was no change in these earnings in this period in
Virginia or South Carolina. In yarn and thread mills
in the Carolinas, a 2-cent increase occurred in each
state or 1.7% in North Carolina and 1.6% in South
Carolina. In the broadwoven fabrics mills, no change
was recorded in average hourly earnings between Feb­
ruary and March.
11

Y

Federal Reserve Bank of Richmond

Series E Bond Anniversary
Day 1956 marked the Fifteenth Anniversary

For the individual, it makes possible the attainment

of the inauguration of the Series E Bond Pro­

71 / / "

of many personal goals— home and business ownership,

ay

gram.

education, comfortable retirement,

T o celebrate the occasion, the United States

better health.

It

Treasury launched on that day a special May-Decem-

provides an ideal medium for holding liquid assets and

ber sales promotional campaign featuring this popular

at the same time an investment as high yielding as any

bond and its current-income companion, the H bond.

other fixed income obligation of similar quality.

About

,70% of approximately $20,000,000,000 E bonds matur­

The 1956 goal for the two series is $5,650,000,000.

ing since 1951 are being retained by their owners under
Sales of the two series in 1955 set a new postwai
record.

optional automatic extension terms.

Series E bonds accounted for $4,192,000,0'
By^ providing an attractive outlet for savings, the Sav-

of the $5,349,000,000 total but were offset to a large

^ ^ ■ p n d s Program encourages some reduction in total

extent by redemptions of $3,870,000,000, these red^iq
tions being about the same as in 1954.

A

1

5

—

during times when high economic activity may
|og|dp¥#op in the

The substantiS^^^^^^B

mdmduals

year, the highest since

are per-

ffiisavs^s during such periods,

able activity in the higher denomT

lessened and the purchasing

$395,000,000 for denomaraiwias

K jllarji^ g j| fgw ^ ^ E d .

In spreading a

than offset net redem ptions'll $/

;nt ot\ the national debt among almost a

nations of $100 and under

^ h i 's

population, the program (to the

e x te rm t^ ^ ^ ^ ^ ^ ^ M ie rs hold on to their savings in

W ith no redemptions of maturing b ^ ^ ^ ^ ^ H J K irits

this form )^ ™ ^ ^ ^ ^ ^ o n sid e ra b le contribution to the

healthly sales, the Series H bond, w j^ H ^ m v e d on the

complex problems oW ^ easu ry debt management.

market in 1952, rang up a net s a l^ fig u re of $1,098,000,000 in 1955.

The Savings Bonds Program has had an illustrious

This followed a sizable $828,000,000

history in W orld W ar II and down to the present.

gain in 1954 and sent the total outstandings of this bond

Thousands of bankers and employers have served with­

at year-end 1955 to $2,547,000,000.

out compensation as salesmen of the program, joining
The current Treasury campaign for the two series,

their support writh that of the 40,000,000 persons who

not unlike previous ones, turns the spotlight once again

today hold an all-time high of more than $40,000,000,000

on what the Savings Bonds Program contributes in the

of Series E and H bonds.

way of a sound financial program for the individual as

endorsers of the soundness of the program as it has

well as for the nation as a whole.

evolved through the years.




i

12

y

They stand as convinced

May 1956

F ifth
D E B IT S TO D E M A N D
(000
March
1956
Dist. of Columbia
Washington ----------$1,534,212
Maryland
Baltimore ___________ 1,754,908
Cumberland ______
26,994
Frederick _________
28,068
Hagerstown ______
50,162
Salisbury** ______
36,165
Total 4 Cities ___ 1,860,132
North Carolina
A sheville__________
72,741
459,348
Charlotte _________
Durham ___________
87,877
Greensboro ________
168,700
High Point** ........
59,453
K in s to n ____ _______
22,469
Raleigh ___________
257,765
54,299
Wilmington ______
Wilson ____________
21,196
Winston-Salem ___
210,451
Total 9 C ities___ 1,354,846
South Carolina
Charleston ________
94,443
Columbia _________
200,037
154,034
Greenville _________
Spartanburg _____
73,193
Total 4 Cities ___
521,707
Virginia
Charlottesville ____
38,204
43,002
Danville __________
Lynchburg _______
62,871
Newport News __
_
62,529
Norfolk ___________
320,997
Portsmouth ______
37,914
Richmond _________
688,395
Roanoke __________
157,237
Total 8 Cities ...... 1,411,149
W est Virginia
Bluefield __________
56,226
Charleston ________
183,544
Clarksburg ________
39,882
Huntington ______
86,494
Parkersburg _____
36,870
Total 5 Cities ......
403,016
District Totals _____ $7,085,062

D istr ic t

D E P O SIT A C C O U N T S*
omitted)
March
3 Months
3 Months
1955
1956
1955
$1,450,916

$ 4,517,706

1,597,404
24,758
25,235
45,174
35,025
1,692,571

5,041,919
77,383
74,527
139,092
103,971
5,332,921

4,524,552
68,967
67,008
122,788
94,633
4,783,315

68,277
434,023
81,528
144,198
52,827
22,081
269,550
55,326
20,777
186,388
1,282,148

215,141
1,360,593
258,708
479,328
168,424
67,928
719,389
156,018
64,657
586,084
3,907,846

199,936
1,216,305
235,930
430,956
147,143
68,246
660,003
153,429
63,044
507,820
3,535,669

S ta tistic s

W E E K L Y R E P O R T IN G M E M B E R B A N K S
(000 omitted)

$ 3,973,861
Items
Total Loans

Changes in Amount from
Apr. 11,
Mar. 14,
Apr. 13,
1956
1956
1955
________________ _ _ $1,786,030** +
_
9,216
+207,692

Bus. & Agric. ________________

+ 13,411
156
+
— 4,244

87,208
176,818
132,627
67,915
464,568

275,582
591,855
438,282
215,035
1,520,754

243,731
500,517
377,213
198,637
1,320,098

Real Estate Loans __________
All Other Loans _____________

817,233
330,731
663,524

Total Security Holdings ______

1,664,817

-

19,260

175,727

U. S. Treasury Bills ________
U. S. Treasury Certificates ..

81,411
17,704

_

U. S. Treasury Notes _______
U. S. Treasury Bonds _____
Other Bonds, Stocks & Secur.
Cash Items in Process of Col. ..
Due from Banks ______________
Currency and Coin ____________
Reserve with F. R. Banks ____

303,256
986,270
276,176

— 15,862
— 50,548
— 64,785

—

4,183
12,038
4,693
6,677
1,055
30,654
6,552

+
+
+

1,406
19,972
541

+
+
+
+

45,000
468
2,829
2,987
85
47,966
3,422

-

25,331

+

83,596

—

37,048

+

47,931

328,365
169,067*
81,404

541,990
Other Assets __ ___ . _______
72,248
Total Assets _________________ $4,643,921

Total Demand Deposits ............. $3,474,104
38,592
40,404
54,505
57,645
308,711
38,524
684,362
132,400
1,355,143
45,633
162,495
35,798
77,301r
32,818
354,045
$6,599,391

112,199
133,428
184,303
183,098
917,430
112,288
2,059,111
449,704
4,151,561
171,071
551,186
122,810
254,877r
109,950
1,209,894
$20,640,682

* Interbank and U. S. Government accounts excluded.
** Not included in District Totals,
r Revised.




B a n k in g

106,832
118,945
155,327
158,271
838,369
107,174
1,930,077
371,494
3,786,489
129,210
514,115
105,698
234,995r
90,920
1,074,938
$18,474,370

Deposits
Deposits
Deposits
Deposits
Certified

of
of
of
of
&

Individuals _____ 2,601,049
U . S. Government. 101,897
State & Local Gov.
219,938
Banks . ________
496,357
Officers’ Checks ..
54,863*

Total Time Deposits __________
Deposits of Individuals _____
Other Time Deposits . _ . ____

764,295
684,404
79,891

Liabilities for Borrowed Money
25,500
All Other Liabilities ___________
47,499
332,523
Capital Accounts ______________
Total Liabilities ___ _________ $4,643,921

—

+
—
—
—

82,622
+ 31,043
—
364
+ 21,261
— 6,366
—

+101,414
+
+

—

+
—

21,435
88,044

+ 20,527
— 4,207
+ 14,977
+ 12,521
4,113
+
—

12,997
5,997
7,000

+
-

358
3,835
4,193

1,000
6,136
5,856
+
— 25,331

+
+
+
+

4,170
5,039
26,814
83,596

+
+
+
—

—

* Net figures, reciprocal balances being eliminated.
** Less losses for bad debts.

Federal Reserve Bank of Richmond

F if t h

D is t r ic t

F U R N IT U R E SAL ES*
(Based on Dollar Value)
Percentage change with correspond­
ing period a year ago
STATES
March 1956
3 Mos. 1956
Maryland __________________________
- 2
+ 3
Dist. of Columbia _________________
0
+ 2
Virginia ___________________________
+ 10
+ 3
West Virginia ___________________
+ 17
+ 17
North Carolina ___________________
+ 16
+ 15
South Carolina ____________________
+ 12
+ 8
District __________________________

+

8

+

IN DIVID UAL CITIES
Baltimore, Md. ___________________
- 2
Washington, D. C. ________________
+ 2
Richmond, Va. . . _________________
Charleston, W . Va. ______________
+ 9
Greenville, S. C. __________________
— 8
* Data from furniture departments of department stores
furniture stores.

6

+

3
0
3
9
5
well as

—
+
+
as

W H O L E SA L E TRADE
Sales in
Mar. 1956
compared with
Mar.
Feb.
LINES
1955
1956
NA
NA
Auto supplies ______________
Electrical, electronic and ap­
pliance goods ___ . _____ — 6
— 13
Hardware, plumbing and
heating goods ____________
— 5
+ 6
Machinery equipment sup­
— 11
plies - _ ___
- „ _.
+ 16
Drugs, chemicals, allied
+ 10
products _________________
+ 11
— 19
Dry goods __________________ —24
Grocery, confertionery,
meats ____________________
+ 5
+ 6
Paper and its products ____ + 6
+ 5
+ 16
Tobacco products __________ + 10
Miscellaneous ______________
+ 9
+ 5
0
District total ______ ____
+ 5

Stocks on
Mar. 30, 1956
compared with
Mar. 31,
Feb. 29,
1955
1956
NA
NA
— 13

— 9

+ 10

— 7

+ 15

+

+ 11
NA

+ 4
NA

+ 4
NA
— 9
+ 11
+ 5

+ 2
NA
+ 1
+ 10
0

1

N A Not Available.
Source: Bureau of the Census, Department of Commerce.

S t a t is t ic a l

D ata

B U IL D IN G P E R M IT F IG U R ES
Mar.
1956
Maryland
Baltimore ____ $ 4,767,820
Cumberland
49,525
Frederick _____
212,950
Hagerstown
275,420
Salisbury
___
206,540
Virginia
Danville ...........
381,718
Hampton _____
1,152,483
Hopewell ______
107,618
Lynchburg
3,522,540
Newport News
458,837
Norfolk _____ „
901,968
Petersburg ____
290,500
Portsmouth
261,958
Richmond ___ _ 1,399,980
Roanoke
_.
5,223,003
Staunton ______
319,316
Warwick ______
854,833
West Virginia
Charleston ____
486,781
Clarksburg ____
197,519
Huntington
419,849
North Carolina
Asheville _ .......
1,796,140
1,735,534
Charlotte . .
Durham
— - 1,274,991
Gastonia ______
412,725
Greensboro _. 1,246,685
High Point ___
881,905
Raleigh — ____
754,663
393,376
Rocky Mount ..
Salisbury _____
149,070
Wilson „
__ .
164,400
W inston-Salem
1,152,086
South Carolina
197,132
Charleston ____
640,476
Columbia ____
Greenville _____
697,075
Sp artan b u rg_
422,628
Dist. of Columbia
Washington
6,836,673
District Totals .. $40,246,717

Mar.
1955

3 Months
1956

3 Months
1955

$ 3,225,000
164,758
222,300
172,565
561,152

$15,868,150
132,025
302,300
402,795
581,529

$ 19,768,057
428,808
486,455
493,235
761,017

387,763
3,950,133
583,113
1,686,939
211,081
1,591,429
979,000
378,035
2,309,670
1,020,601
491,910
1,030,709

1,296,011
2,190,871
442,782
4,389,135
788,693
3,098,681
709,500
979,158
4,843,143
7,779,607
770,866
2,000,400

2,388,380
5,825,031
999,671
2,586,003
494,361
3,397,727
1,313,900
969,910
4,532,885
2,841,659
1,007,280
2,584,684

867,539
268,773
528,808

987,133
303,257
792,536

1,619,456
492,195
1,050,948

334,435
5,744,003
796,343
530,000
1,422,165
1,064,683
2,484,888
363,926
98,030
815,725
2,009,789

2,377,411
5,890,931
1,973,582
1,757,500
3,780,510
1,903,719
2,607,574
1,022,763
507,470
1,079,350
3,892,949

720,315
8,426,196
4,893,389
2,132,300
2,635,980
2,474,118
6,569,186
983,445
249,408
1,310,175
3,943,922

148,871
1,067,493
547,248
43,518

580,449
3,216,430
1,843,981
910,558

538,883
2,020,102
1,454,798
500,968

11,613,604
$49,715,999

13,752,730
$95,756,479

20,114,767
$113,009,614

F IF T H D IS T R IC T IN D E X E S
D E P A R T M E N T STORE O P E R A T IO N S
(Figures show percentage changes)
Other
Wash. Cities
Rich. Balt.

Seasonally Adjusted: 1947-1949=100
Dist.
Total

Sales, Mar. ’56 vs Mar. ’55 _
Sales, 3 Mos. ending Mar. 31,
’56 vs 3 Mos. ending Mar.
31, ’55 ___________________

+10

+11

+ 17

+ 10

+

3

+ 13

+ 13

+ 10

Stocks, Mar. 31, ’56 vs ’55 _

+

0

+ 12

+ 14

+

3

+ 10

+

3

+20

8

Outstanding Orders,
15

+

3

Open account receivables Mar.
1, collected in Mar. ’56 -

32.9

54.5

46.5

39.3

Instalment receivables Mar.
1, collected in Mar. ’5 6 __

11.1

K.3

14.3

17.0

Md.
Sales, Mar. ’56 vs Mar.
’ 55 ___________________




+14

D.C.

Va.

W .V a.

N.C.

+ 17

+ 15

+22

+ 14

Mar.
1956

+16

+21

New passenger car registration*
Bank debits ___________________
Bituminous coal production* ....
Construction contracts _______
Business failures— n u m b e r___
Cigarette production ______ _ _
_
Cotton spindle hours __________
Department store sales _______
Electric power production ____
Manufacturing employment* __
Furniture store sales __________
Life insurance sales __________

179
104
191
307
122
137
130r
219

* Not seasonally adjusted.
r Revised.
Back figures available on request.

Feb.
1956

Mar.
1955

% Chg.—
Latest Mo.
Yr.
Prev.
Ago.
Mo.

152
182
107r
189
197
108
122
129
192
111
116r
214

186r
166
86
220
224
100
115
129
179
108r
112
190

+ 1
— 2
— 3
+ 1
+ 56
0
0
+ 6
0
0
+ 12
+ 2

+ 5
+ 8
+21
— 13
+ 37
+ 4
+ 6
+ 6
+ 5
+ 4
+ 16
+ 15

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