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MONTHLY

REVI EW

o f Financial and Business Conditions

F i f th
Federal

Reserve
Distr ic t

Federal Reserve Bank, Richmond13, Va.
T

November 30, 1945

1T T L E progress has been made in the way o f ex-

voluntarily reduced by those who entered it to aid in the
war effort. Some seasonal improvement can be expected
months’ period following the end o f war. In fact, the
in the mill supply o f labor coming from farms, but this
output of manufactures and minerals other than war
is a temporary lift. It may, however, bridge the gap
goods appears to have declined somewhat in this period.
until severances from military service fill in the void.
W ar contract cancellations have had their initial effect,
Unless mill strikes become widespread the outlook points
to a better production level than is current, but the labor
principally on subcontractors, and employment termina­
supply is not likely to be large enough to run the mills
tions in these subcontracting plants have been effected
at capacity anytime soon.
with dispatch. Some shipyards o f the District, however,
All rayon facilities in the District are operating at full
are still working on war orders and employment levels
tilt. Demand is well in excess o f production
are still higher than can be expected under
and several new expansions are projected. Fur­
peacetime operations, principally at the two
yiCTORY
ther growth will come in this industry, and
Navy yards in this area.
production may be expected to continue at ca­
Peacetime employment levels, at least for
BUY
U N IT E D
pacity for an indefinite period in the future,
the next year or two, in the merchant ship­
STATES
W A R
barring labor stoppages.
yards and aircraft factories of the area now
^BO N DS
AND
Bituminous coal output o f the District in
point to a higher total than was considered
STAMPS
October fell 36 per cent below September and
probable some months ago. The shipyards at
38 per cent below October 1944. This was
Baltimore and Wilmington have contracted to
the result o f strikes. The coal supply through­
construct merchant ships for commercial pur­
out the nation is extremely low, and several plant shut­
poses and the Glenn L. Martin aircraft plant in Baltimore
downs o f a few days’ duration have been experienced in
expects sufficient airline orders to occupy 12,000 workers
this District because o f a shortage o f coal. The coal de­
in the coming year.
mand outlook for the coming year is equally as good or
The cotton textile industry is still confronted with an
better than for the current year, despite the fact that total
inadequate supply of labor, productivity has lessened
domestic consumption seems likely to run somewhat under
somewhat, and the average daily utilization o f cotton in
the present year, stock piling and export making up the
the mills has shown no pick-up since the war ended. U n­
employment compensation figures do not indicate that
difference.
Department store sales continue their amazing wartime
textile workers are taking vacations in this manner, and
the conclusion must be drawn that the labor force is being
Continued on page 9

^ panding production in the Fifth District in the three

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

* Not seasonally adjusted.



Sept.
1945

Aug.
1945

Oct.
1944

222

243
140
83
209
127
225

231
136
92
205
124
235
198
159
170
126

205
145
48
152
142
228
187
146
175
163

90
160
233
126
248
196
179
197
195

200

149
163
167r

% Change
Oct. 1945 from
Sept. ’45
Oct. ’44
— 9
—36
+93
+11
1
+10
__ 2
+20
+21

—

+17

+ 8
— 38
+233
+ 53
— 11
+
9
+
5
+ 23
+ 13
+ 20

2

MONTHLY REVIEW

CHART I

COTTON PRICES AND INCOMES IN TWO WORLD WARS
FARM

PRICE

GROSS

INCOME

cc
£
to!
<r
a.

to .

o

-------------------! ................ ....

~5th. DIST

cc 200
U
J

PREWAR

iU 3 0 0
o

_

>

WORLD WAR I

-

CL

w o r LD

WAR 3E

'

PER

CENT

O
F

1 00

PER

CENT

O
F

PREWAR

COST OF PRODUCTION

1939
* - PREWAR
SOURCE:



PERIODS

ARE

1910-1914 FOR WORLD WAR I ,

BUREAU OF AGRICULTURAL

ECONOMICS.

AND

1941
1 9 3 5 *1 9 3 9

1943
FOR

FEDERAL

WORLD

RESERVE

1945

WAR I I ,
BANK

OF RICHMOND.

MONTHLY REVIEW

3

Cotton In Two World Wars
PART II:

FARM PRICES AND INCOMES*

Under the present law the price of cotton in the United
States will be supported by the Government at 92l 2 per
/
cent of parity for two years following the official declara­
tion of the end o f hostilities. Since no such declaration
has yet been made, this price support commitment will
apply at least through the crop year beginning in August,
1947. Also, it has just been announced that marketing
quotas on cotton will again be suspended, as during the
last two years, meaning that producers may plant any
desired acreage o f cotton in 1946. Thsee two develop­
ments assure cotton'producers of the South and the Fifth
District favorable returns in the coming year, if yields
are maintained. This article has been prepared in order
that bankers and other business leaders in cotton commu­
nities may become better acquainted with what has hap­
pened to cotton prices and incomes during W orld W ar II
and the ways in which recent experiences are like or un­
like those o f 1914-18. In order to facilitate this under­
standing, the present article will discuss in sequence: the
factors determining cotton prices during the two wars,
cotton prices and incomes in the United States over this
period, and the situation within the Fifth District as
projected against this background.
G eneral B ackground

Since this country became involved in W orld W ar II.
the level of prices paid farmers for their cotton has been
greatly influenced by Government actions, including loan
and purchase programs, textile ceilings, and export pro­
grams. Some o f these Federal actions originated with
the emergency, but others had been in operation in some
form since as far back as 1929. These programs have
caused the cotton price situation of this war to differ
markedly from the relatively free, competitive one of
W orld W ar I.
OJbviously, the farm price o f cotton in a free market is
determined by the interaction of supply and demand, but
such a statement is an over-simplification. Cotton prices
have been extremely sensitive to many factors, some far
removed from the immediate market situation, and the
pricing o f cotton is, therefore, a most complex process.
Among the supply factors considered by the market dur­
ing the years prior to 1929 were the current crop, the
carryover from previous seasons, and the manner in
which the carryover was held. The demands were those
furnished, in the final analysis, by consumer demand for
finished goods in the manufacture o f which cotton was
used in one way or another. But, while farm supply
tended to reach the market over a short period of each
crop year, the buyers of cotton were forced to anticipate
future levels o f consumption. Many adjustments were
made for expected as well as realized quantities of supply
* This is the second of two articles examining some of the effects o f war
upon the cotton economy, especially that o f the Fifth Federal Reserve Dis­
trict. The first appeared in the MONTHLY REVIEW o f September 30,
1945, and dealt with production and consumption. In general arrangement
and point o f view the two articles are similar, but this one will deal more
specifically with domestic situations rather than with world conditions.
Part o f this difference is the result of choice and part is the result of re­
cent wartime conditions which make many data on world cotton prices,
etc., currently unavailable.




and demand through the agency o f the futures market,
and many varied kinds o f speculation. Chart 2 shows
the relationship between the farm price o f cotton in the
United States and the demand-supply ratio for the period
1910-44. Since a great many non-cotton influences are
introduced into money-prices through variations in the
purchasing power o f the dollar, these have been partly
corrected for, and the price series reduced to dollars of
constant purchasing power in terms o f wholesale goods.
The reader will note that, although the two lines fol­
lowed approximately similar paths from 1910 to 1917,
their relationships after that year became increasingly
diverse. A fter 1917 the full impact o f the war upon
cotton markets sent the prices of farm lint up to the 1919
high. The advance o f the boll-weevil during the early
1920’s so reduced the supply and raised the price o f
cotton that production in non-infested areas (including
foreign countries) wT stimulated. Adjustments of acre­
as
age and the gradual control o f the weevil brought prices
down until 1926, after which they were caught up in preDepression boom. The effects o f this wave o f prosperity
were felt until 1930. Although Government efforts to
support the prices o f cotton have been continuous from
1929 to date, it was not until the entry o f this country
into W orld W ar II that cotton prices rose above the
1916-17 level.
The earliest Federal effort at supporting cotton prices
during this period was in 1929 when the Federal Farm
Board began operations .1 Commencing with 1933, in ad­
dition to reducing or controlling acreage, the Government
has t ied to support the price o f cotton through non­
recourse loans offered directly to producers. These loans
have enabled farmers to refuse bids at values below the
loan rate while retaining the privilege of selling in the
open market at a higher-than-loan value, if the opportunity
presented itself. This program has resulted in higher
market prices than otherwise would have prevailed. A l­
though there was little difference between the sizes o f the
1932 and 1933 crops and possibly a falling off in demand,
the 1933 price was distinctly higher than that o f the pre­
vious year (see chart 3 ), partly because o f the loan pro­
gram. In 1936 no loan program was offered, but the
demand-supply situation was such that prices were higher
than the supported prices o f 1935. In addition to their
direct eiiects on prices, these programs have had others
as well, some o f which will be examined later.
The gross income from cotton obviously is the product
o f production times price .2 But the price and aggregate
supply and demand interact in such a way that (in a tree
market) is it possible for producers to receive less from
a large crop than from a small one o f the same average
1 The Farm Board attempted to support farm prices of cotton by lending
money to farm cooperatives which in turn lent it to farmers on their crop.
In 1929 the Board stipulated a support level of 16 cents per pound. For
the crop years 1930-32 the Board lent relatively little money with no mini­
mum stipulation, and the support level was closely related to the market
price. Beginning with the operations of the Farm Credit Administration
in 1933, the Board was absorbed by the FCA and its cotton support program
replaced by the Commodity Credit Corporation’ s program o f direct loans
to producers.
2 Unless otherwise specified, the term income as used herein with reference
to cotton refers only to the income from cotton lint and does not include
AAA payments or the value o f cottonseed.

MONTHLY REVIEW

4
CHART 2

CHART 3

UNITED STATES COTTON: RELATIONSHIP BETWEEN FARM PRICES,
THE GENERAL PRICE LEVEL, DISAPPEARANCE AND SUPPLY

UNITED STATES COTTON: RELATIONSHIPS BETWEEN "PARITY" PRICE,
GOVERNMENT LOAN RATE, AND FARM PRICE, 1920-1945

CROP YEARS 1910-1944

*

REDUCED TO DO LLARS OF CONSTANT W HOLESALE PURCHASING POWER IN

*

NO LOANS WERE MADE IN 1936.

T ERM S OF 1910*1914 PRICES.
SOURCE: BUREAU OF AGRICULTURAL ECONOMICS.

FEDERAL RESERV E BANK OF RICHMOND.

SOURCE' BUREAU O F AGRICULTURAL ECONOMICS.

FEOERAL RESERVE BANK OF RICHMONO.

CHART 4
THREE CONCEPTS OF UNITED STATES FARM INCOME FROM COTTON, 1910-1943

I

TOTAL VALUE

OF LINT COTTON.

2

A FTER

DEDUCTION OF

3

NET INCOME REDUCED TO D O L L A R S

E ST IM A T ED COSTS OF PRODUCTION CORRECTED
OF

1910-1914

PURCHASING

FOR VALUE

OF

COTTONSEED.

POWER IN T ER M S OF PRICES

PAID BY

FARMERS

FOR COMMODITIES

USED

IN

LIVING AND

PRODUCTION.
SOURCE'

BUREAU

OF

AG RICULTURAL




ECONOMICS.

FE O E R A L

RE SERV E

BANK

OF

RICHMONO

MONTHLY REVIEW
quality. From some standpoints (including that o f the
community) the gross income from the crop is the most im­
portant measure of income, but from others (fo r instance,
that of the individual farmer) net income after deducting
costs of production may be a better measure of profitabil­
ity. The United States Department o f Agriculture has
computed state average costs of production under certain
basic assumptions,3 and these deductions will be made here
whenever net incomes are under consideration. Another
measure of income is farm purchasing power, which may
be obtained by reducing income figures to constant dollarvalues in terms o f the prices farmers pay for the com­
modities they usually buy. Chart 4 compares these three
different concepts o i United States cotton incomes for the
period 1910-43. It will be noted that they tend to rise and
fall together.
The level o f living which cotton production will afford
is affected by a number o f considerations. Am ong these
are the degree o f dependence upon cotton as compared
with other sources o f farm income, and the amount of
income from cotton per farm person or per farm family.
T

he

U

n it e d

S tates

S it u a t io n

Part I o f this analysis indicated that the prewar situtions o f cotton production and consumption were quite
different between W orld W ars I and II. This was also
true o f prices and incomes (see Table 1 ). Cotton prices
and costs o f lint production fell between 1910-14 and
1935-39, but the former fell by the greater proportion.
This wT
iped out the slim margin o f profit found prior to
the earlier war. Since total production also fell over
this period, there was a 16 per cent drop in gross income
from cotton lint and a net loss to farmers on their average
pre-W orld-W ar-II crop.
Table 1
UNITED STATES COTTON: SELECTED INCOME INDICATORS,
AVERAGES FOR 1910-14 AND 1935-39
1935-39
as per
Five-year averages cent of
1935-39 1910-14
ITEM
Unit
1910-14
Average farm price
Average cost of production
Gross cotton income1
N et cotton income2

Total production

Cents per pd.
“
“ “
$1,000
“

1,000 standard bales3

9.9

90

11.0
10.8
765,967

10.0

93

640,556

84

4,968

— 9,288

14,259

13,149

92

1 Total value of cotton lint produced.
2 Contains allowance for value of cottonseed.
s Bales of 500 pounds gross weight (478 pounds pet).

Source: Bureau o f Agricultural Economics.

Not only did the prewar situations differ, but there was
no apparent pattern o f wartime behaviors. (See Chart 1.)
In every instance the outbreak o f war was followed by an
upswing ,4 and each variable tended to move along the same
relative path for the first two years of war— but there the
resemblance ends. Costs of production behaved similarly
in both wars, but in 1917-19 prices were much higher than
for corresponding later years, so that both gross and net
3 To compute costs of production certain general assumptions must be made
in order to attain comparability, and these assumptions are not always met
in the producer’s own calculation o f his profits. Many factors (such as in­
terest, wages for unpaid labor, etc.) are charged against the crop which
the farmer does not consider as costs of producing cotton. The USD A cost
figures are based on prevailing cost rates for labor, farm power, materials,
equipment, and land rent.
4 In 1914, just after the beginning o f hostilities, the wartime situation com­
bined with a large world crop to bring about a sharp reduction in farm
prices of cotton (from 12.5 cents per pound in the previous season to 7.4).
The fall was almost entirely recovered in the following year, however, and
prices rose thereafter.




5

cotton incomes were higher during the earlier war. In
1920, cotton prices fell sharply while production costs rose
somewhat. Gross incomes fell and a $600,000,000 net
loss occurred. This was the greatest loss o f any year o f
record (beginning in 1910).
During the interwar period fluctuation o f cotton prices
were much greater than those o f prices paid by farmers
(see Chart 5 ). A s a result, there were two periods in
which the relative purchasing power o f cotton was greater
than in 1910-14 and two, o f much longer duration, in
which the opposite was true. This latter period is shown
through 1939 on the chart, but it actually continued well
into W orld W ar II. In general, the explanation of this
relationship is found in several connected phenomena.
Probably the greatest single part o f the cotton farmers’
disadvantage was the result of the loss o f competitive
position o f cotton relative to foreign growths in cotton
importing countries, and to synthetic fibres and paper in
both domestic and foreign markets. A ll the export com ­
modities o f the United States were subject to certain han­
dicaps during the interwar period. These factors (import
quotas, export subsidies, exchange controls, tariffs, etc.)
were hardly felt during the first part o f the century; but
in the 1920’s, to some extent, and especially during the
1930’s they effectively prevented the full foreign demand
for our crops from ever reaching our markets. The
United States attempted to offset some o f these depressing
influences through international loans, reciprocal trade
agreements, subsidies, and the like. Furthermore, regard­
less of the cause, any rise of domestic cotton prices rela­
tive to the prices o f competing foreign growths or other
competing raw materials stimulates the production o f the
competitor, tends to weaken the competitive position o f
American cotton, and gives rise to demands for further
‘‘assistance” . Thus, during the 1920’s, high cotton prices
which followed the advent o f the boll-weevil stimulated
other cotton producing countries to expand their output
with an eye to world trade. A t the same time the rayon
industry instituted many technical advances which lowered
its prices and increased production. A s a result of this
dual competition, cotton in this country entered into a
period o f adversity which coincided roughly with the de­
pression o f the 1930’s. Federal programs designed to
support the domestic price of lint further aided the com­
petitive efforts of foreign cotton and the competing raw
materials. During the interwar period the price o f rayon
yarn (Viscose, first quality, 150 denier) fell from $2.92
per pound in 1920 to 53 cents per pound in 1939; over the
same period in a standard cotton yarn price (single 40’s
carded) fell from 40 to 35 cents per pound. Tne price
relationship between cotton and rayon changed drastically
(see Chart 6 ). Although the relationship between do­
mestic and foreign prices o f raw cotton did not behave in
this same way, foreign acreage and production expanded
while United States acreage and production were con­
tracting. Regardless o f their beneficial aspects, the Gov­
ernment’s cotton programs cannot be said to have solved
the basic cotton problem.
Within the United States the generally falling tenden­
cies of both cotton production and its average price
brought about a decrease o f 63 per cent in the total value
of cotton lint and seed between the crops o f 1924 and
1939. In terms o f farm purchasing power the fall was
not quite so severe (about 51 per cent), but was still ex-

MONTHLY REVIEW

6
CHART

5

CHART 6

RELATION OF COTTON PRICES TO PRICES RAID BY FARMERS
UNITED

*

FOR

STATES,

COMMODITIES BOUGHT FOR

PRICE

RATIOS

1921 - 1939

LIVING AND

SOURCE: BUREAU OF AGRICULTURAL ECONOMICS.

FED ERAL

AFFECTING

DURING THE

PRODUCTION.
RESERVE

GEOGRAPHICAL
COTTON

DISTRIBUTION

INCOME DURING THE
1,458

100

STATES COTTON

* LIVERPOOL PRICES OF THREE REPRESENTATIVE
U. S. MIDDLINGS 7/8 INCH.

BANK

OF RICHMOND.

SOURCE: BUREAJU OF AG RIC U LTU RAL

CHART 7
THE

UNITED

INTERWAR PERIOD

ECONOMICS.

FEDERAL

FOREIGN GRADES AND
RESERVE

BANK OF RICHMOND.

CHART 8
OF UNITED STATES

GEOGRAPHIC VARIATION OF AVERAGE COTTON VALUE

INTERWAR PERIOD

PER FARM DURING THE

INTERWAR PERIOD

649
NORTH

CENTRAL

MOUNTAIN

90 —

AND

EAST

SOUTH

iS s S ) SOUTH

PACIFIC

C EN T R A L
A T LA N TIC

W EST

80

SOUTH

SOUTH
NORTH

A T LA N TIC

g

5,000

CENTRAL
CENTRAL

MOUNTAIN

*

AND

PACIFIC

70 —
60 —

4,000

% ■& ]
z
8

EAST

SO UTH

CENTRAL

50

:

3,000

£ 40 —
Q-

o> ZpOO

30 —
W EST

20 —

SOUTH

CEN T RA L

ipoo
10 —
0
*
SOURCE:

BUREAU OF AG RICU LTU RAL ECONOMICS.




FE D E R A L

M ILLIO NS OF DO LLARS.
RESERVE

BANK

OF RICHMOND.

1919
SO URCE: CENSUS

OF AGRICULTURE, It 4 0 ; 0. A.E.

1929
FED ERAL RESERVE

8ANK

OF RICHMOND.

MONTHLY REVIEW
tremely drastic in its impact on cotton-producing regions.
However, this was not all. It was shown previously that
there have been many shifts in regional importance as
cotton producing areas, so that the impact on areas o f de­
creasing cotton production was doubly intense, although
much of the decrease was offset through a further shift to
other farm enterprises. It can be seen from Chart 7 that
this reduction was most severe to the South Atlantic re­
gion, since every other section o f the cotton South either
maintained or increased its proportionate share of total
income over this whole period. Furthermore, this down­
ward trend in cotton incomes was not accompanied by a
significant decrease in the number of farms which raised
the crop. Thus, in all but one region (the North Central
States) average income from cotton per farm also fell
(see Chart 8 ).
T h e S it u a t io n

in

the

F if t h

D is t r ic t

The prewar conditions found in the Fifth District were
somewhat similar to those of the United States, but the
relationship between the two prewar periods was different
enough to warrant comment. In the District, as com­
pared with the country at large, cotton prices were higher
relative to costs of production during 1910-14. Thus,
even though costs rose and prices fell (see Table 2 ), cot­
ton farmers still made profits instead o f losses during
1935-39. On the other hand, the latter period was one of
much lower production in the District, causing a corre­
sponding decrease in the total value o f the crop.
Table 2
FIFTH DISTRICT COTTON: SELECTED INCOME INDICATORS,
AVERAGES FOR 1910-14 AND 1935-39
1935-39
as per
Five-year averages cent of
1935-39 1910-14
ITEM
Unit
1910-14
92
10.2
Average farm price*
Cents per pd.
11.1
103
9.8
Average cost of production
“
“ “
9.5
58
71,853
Gross cotton income1
$1,000
124,099
20
3,250
Net cotton income2
“
16,651
62
1,405
Total production
1,000 standard bales8
2,279
♦Estimated from state figures.
123 See Table 1.
Source: Bureau o f Agricultural Economics.

Again referring to Chart 1, it will be noted that the
wartime patterns of Fifth District incomes and prices
were quite like those of the nation. Farm prices of cot­
ton behaved almost identically, but the District departed
slightly from the national cost movements and showed
relatively higher costs during the second W o rld War.
Although the District's gross income behavior during both
wars and net income behavior during W orld W ar I were
verv like the nation’s, its W orld W ar II level o f net in­
comes was distinctly different. Producers in the District
realized relatively constant small profits on their cotton
and did not show the sudden rise in profits which charac­
terized the rest o f the country.
During the interwar period, the Fifth District showed
*a favoredable cotton cost-price ratio relative to the United
States. In most years costs of production were slightly
:lower and farm prices slightly higher than the national
average. However, in view o f the marked reduction in
acreage and production during this same period this is not
unusual, nor does it necessarily prove that the District
can compete with other parts o f the country. On the con­
trary, much o f the lowness of costs is due to lower agri­




7

cultural wage levels and to the confinement o f Southeast­
ern cotton to the best land. It is also quite possible that
production cost estimates do not yet fully reflect the degiee o f mechanization achieved in some parts o f the South.
In connection with the price differentials, it must also be
remembered that most o f the cotton grown in the South­
east is of a staple length which is subject to relatively
good demand. A ll this points to a conclusion which should
not be overlooked in current discussions o f the South's
agricultural future: even though the Southeast may havelost its position as the leading cotton section of the United
States, cotton will, at least for the foreseeable future, con­
tinue to be a very important source of the region s cash
farm income.
Another aspect o f this same development is brought out
by the relative labor returns per acre o f cotton as com ­
pared with tobacco (flue-cured) and peanuts (picked and
threshed), the other two important cash crops of the Fifth
District. Table 3 makes this comparison on the basis of
labor needed per acre, value o f production per acre, and
the return per hour o f labor expended .5 This comparison
throws light on recent adjustments o f crop acreages in
the Southeast. In areas where both crops can be grown
and where there is a very high ratio o f persons directly
dependent on agriculture to farm land, tobacco will pro­
vide more employment per acre and yield a better gross
return per hour o f labor than cotton. W here the manland ratio is lower, peanuts, livestock, and other less laborintensive enterprises may provide a better return per hour
of labor than either cotton or tobacco. Thus, as the farm
population of the South is altered through the interaction
o f natural increase, migration, and industrialization, there
may be natural shifts o f emphasis to less intensive farm­
ing in many areas and from cotton to tobacco in the high
density areas.
Table 3
RELATIVE RETURNS FROM COTTON, TOBACCO, AND PEANUTS
IN THE FIFTH DISTRICT STATES, 1935-39 AVERAGE

ITEM AND STATE
Manhours of labor required1
Virginia
North Carolina

South Carolina
Value of production per acre (dollars)
Virginia
North Carolina
South Carolina
Return per manhour (dollars)
Virginia
North Carolina
South Carolina

1935-39 Average
Picked and
Flue-cured Threshed
Cotton2
Tobacco
Peanuts
128
129
131

420
455
470

74
77
68

26.2
31.3
30.3

149.1
180.9
175.3

39.5
40.9
30.0

.21
.24
.23

.36
.40
.37

.53
.53
.44

1 Includes labor expended in raising, harvesting, preparing for market, and
hauling to market.
2 Lint, only.
Source: Bureau of Agricultural Economics.

Data are not available to indicate the changing impor­
tance o f cotton in the total farm income o f the District
during the entire interwar period. However, all evidence
indicates that the proportion o f farm income derived from
cotton has dropped fairly steadily since the early 1920’s,
until the average income from this source comprised 14
5 Although labor is the biggest single item in costs of production for any of
these three crops, this comparison is not between costs of production. Thus,
high gross returns per manhour of labor do not necessarily mean high labor
income or profits from the crop, because of the presence of other costs.

MONTHLY REVIEW

8

MAP I
VALUE OF COTTON AND COTTONSEED PRODUCTION PER FARM RAISING COTTON,
FIFTH FEDERAL RESERVE DISTRICT, BY COUNTIES, 1939

SOURCE) U.S. CENSUS OF AGRICULTURE, 1940.




FEDERAL RESERVE BANK OF RiCMMOND.

MONTHLY REVIEW
per cent of 1935-39 total.6 Corresponding averages for
the states which raise cotton a re : Virginia, 1 per cen t;
North Carolina, 14 per cent; and South Carolina, 45 per
cent. During this same five-year period percentage shares
o f the individual states in the District’s total cotton income
were: Virginia, 2 ; North Carolina, 40; and South Caro­
lina, 58. This proportionate distribution changed very
little between 1921 and 1939, although the sizes of the
incomes shared have altered greatly.
Within the Fifth District there are wide variations in
county characteristics with respect to cotton incomes, de­
pendence on cotton, and relationships between cotton and
other sources of farm income (see the accompanying three
m aps). Average cotton incomes per farm in 1939 varied
from $40 to over $900, with very few counties averaging
$600 or more. Map 1 indicates this distribution. It would
be a mistake to associate high cotton incomes per farm
with high farm incomes or with high levels of farm liv­
ing; in fact, there is some evidence of the opposite ten­
dency .7 Map 2 shows the proportionate importance of
cotton as a source o f gross farm income. It will be noted
that the general pattern is similar to that found in the
previous map. Map 3 gives the rank o f cotton as an
income source relative to other important farm enter­
prises. From all these exhibits one fact stands out strik­
ingly, namely, that cotton is of overshadowing importance
to a relatively small proportion of the Fifth District, so
that its future will not directly influence the agricultural
prosperity of large parts of this region. Even so, it is
very important in the area of production. On the other
hand, the social and economic problems associated with
cotton are not confined to the cotton-growing sections of
the District, but are quite general, so that their solution
would be o f immeasurable benefit to the entire area.
S u m m a r y a n d C o n c l u s io n s

Large numbers o f bankers, farmers and other business
groups in the Fifth District are directly interested in the
level of cotton prices and especially in the level o f farm
incomes from cotton. All present indications point to at
least two more years of favorable farm returns from this
crop, mainly because o f the present Government commit­
ment to support cotton prices at 92y2 per cent o f parity
for two full calendar years following the official declara­
6 Cash farm income from the marketing o f cotton lint and seed as a per
cent o f total cash income from farm marketing and Government payments.
7 A comparison o f Map 1 with the map on page 2 of the MONTHLY RE­
VIEW for December 31, 1944, leads to the conclusion that an inverse rela­
tionship has existed between the degree of dependence on cotton and the
rural farm level of living. This relationship may not be one of catfse-andeffect; but in all probability the two phenomena derive from the same root
causes. If this is so, then there is a possibility that the production of cot­
ton need not, in the future, associate with low living standards and rural
cultural poverty.

9

tion o f the cessation o f hostilities in W orld W ar II. This
means that the price o f cotton will be supported at this
level at least through 1946-47 and 1947-48, and perhaps
even longer.
During the period o f the first W orld W ar there was
nothing comparable to the system o f price supports which
has been in effect during the last decade and a half, and
cotton prices resulted more nearly from the unhampered
working out of'th e forces o f supply and demand. Cottonminded people who remember the precipitous drop in
cotton prices and incomes in 1920 probably will find as­
surance in the Government price support program, even
though there necessarily is uncertainty as to what will be
the course o f cotton prices beyond the period now pro­
vided for by the above-mentioned legislation.
Supporting cotton prices at higher levels than might
otherwise prevail, although for the time being supporting
farm incomes, nevertheless encourages expanded produc­
tion o f two o f cotton’s foremost competitors in the do­
mestic market— synthetic fibres and paper— and subjects
cotton to increased competition. Similarly, were it not
for export subsidies and other devices which have en­
abled American cotton to be sold for export at competitive
world prices, foreign demand would have shifted even
more from American to other growths.
Part I o f this series emphasized the expansion o f for­
eign cotton production relative to that of the South as
well as the decreased importance o f the Fifth District as
a cotton supply region. The'se phenomena were among
the events leading up to the Government’s action programs
to aid agriculture. There was little change in the Fifth
District average price relationship with the rest of the
country. Consequently the shift in the District’s im­
portance as a. producing area implied a corresponding
shift in its proportionate receipt o f income from cotton.
Changes in costs o f cotton production, which may be ex­
pected to follow further mechanization o f the crop, will
alter still further both the levels o f cotton prices and the
degree o f interregional competition. It is difficult to
assess these effects with any assurance, but they may pos­
sibly weaken even more the position o f many Southeastern areas, and more certainly they should simplify the
problem o f restoring United States cotton to a stronger
competitive position both in foreign and domestic mar­
kets.
Although the Fifth District now is and probably will
continue to-be an area o f decreasing cotton production and
income, cotton will always be important in its pattern o f
production and the source o f an important part o f its
total farm income.

Continued from page 1
expansion, and in October the seasonally adjusted index
for the Fifth District was 10 per cent above the September
level and 9 per cent ahead of October 1944, the largest gains
over a year ago being shown in West Virginia and North
Carolina. Department store inventories— despite the fact
that goods of numerous varieties are unobtainable in stores
— are maintained at a high level. A considerable part of
this value is represented in higher prices. Wholesale sales
of grocery and dry goods firms in October were 16 per cent
higher than a year ago, those of drug firms rose 4 per cent,
while those of hardware firms fell 9 per cent.




A substantial amount of building construction is pro­
jected in the District as evidenced by a rise in building
permits of 93 per cent in October compared with September
and a rise of 233 per cent over a year ago. These, how­
ever, did not reach the contract stage until October as
contract awards had been declining in the previous several
months. Shortages of materials and labor, together with
contractors’ inability to know what prices will have to be
paid for materials and labor, are probably responsible for
this lag.

MONTHLY REVIEW

10

MAP 2
PERCENTAGE CONTRIBUTION OF COTTON TO GROSS FARM INCOME
FIFTH FEDERAL RESERVE DISTRICT, BY COUNTIES, 1939

LEGEND
I

| UNDER 5 PERCENT

H J ] 5-14 PERCENT
15*29 PERCENT
3 0 -4 4 PERCENT
4 5 -5 9 PERCENT
6 0 -8 0 PERCENT

SOURCE: U.S. C ENSUS OF AGRICULTURE, 1940.'




FED ERAL RE SERV E BANK OF RICHMONO

MONTHLY REVIEW

11

MAP 3
RELATIVE IMPORTANCE OF COTTON AS A SOURCE OF GROSS FARM INCOME
FIFTH FEDERAL RESERVE DISTRICT, BY COUNTIES, 1939

LEGEND
COTTON IN FIRST RANK
COTTON SECOND AFTER TOBACCO
COTTON SECOND AFTER HOME CONSUMPTION
COTTON IN THIRD RANK OR LOWER
*

HOKE COUNTY, NORTH CAROLINA DERIVED EQUAL INCOMES
FROM COTTON AND TOBACCO.

80UR0CI U .S .

OENSUS OP

AORIOULTURE, 1 * 4 0 .




FEDERAL RESERVE BANK

OF

RICHMOND.

MONTHLY REVIEW

12

BUSINESS INDEXES—FIFTH FEDERAL RESERVE DISTRICT
Average Daily 1935-39 = 100
Seasonally Adjusted
Sept.
1945
Bank Debits ............................. ..... ............................. ................... 243
Bituminous Coal Production* ................................... ................. 140
Building Contracts Awarded .................................... .................. 111
Building Permits Issued ............................................
83
Cigarette Production ..................................................................... 209
Cotton Consumption* .................................................................... 127
Department Store Sales .............................................................. 225
Department Store Stocks ........................................ ....................200
Electric Power Production ............................ ........ ................... 210
Employment— Mfg. Industries* ..............................
Furniture Orders .......................................................................... 127
Furniture Shipments ..... ............................................ .................. HI
Furniture Unfilled Orders ...................................... ................... 374
Life Insurance Sales ........................................ ........................ 149
Wholesale Trade— Four Lines .
...................... ................... ^53
Wholesale Trade— Drugs ..........
................. ...... ................... 230
Wholesale Trade— Dry Goods ................................
95
Wholesale Trade— Groceries .................................... ..................IgO
Wholesale Trade— Hardware . ................ ..............
61
Retail Furniture Sales ......................... ......... ............................. 167r
* Not seasonally adjusted.
SU M M A R Y O F N A T IO N A L B U S I N E S S CO N D ITIO N S

Industrial output declined somewhat further in October
but in the early part of November production in important
basic industries increased. Value of retail sales continued
to advance considerably in October and early November
reflecting in part small increases in prices.
Industrial Production
Output at factories and mines continued to decline in Octo­
ber reflecting a further curtailment in munitions activity and
reduced production as a result of industrial disputes in some
industries. The Board’s seasonally adjusted index decreased
4 per cent in October and at 164 per cent of the 1935-39
average the index was at the same level as in the middle
of 1941. In the first half of November output in such basic
industries as coal, coke, petroleum, iron and steel, and au­
tomobiles was above the October level.
’
5
Activity in the machinery and transportation equipment
industries showed only small declines in October in Contrast
to the sharp reductions in recent months when most of the
war production in these lines had been terminated. A c­
tivity at automobile factories rose substantially in October
and there were also important increases in output of civilian
products in other reconverted factories.
Steel production was reduced in October as a result of a
temporary curtailment in coal supplies but since the end of
October steel mill operations have increased considerably.
Wage-rate disputes in the West Coast lumber region resulted
in a reduction of 18 per cent in total lumber output in
October.
Output of nondurable goods as a group was maintained
in October.'
Further reductions in output of explosives
and aviation gasoline and other products used for war pur­
poses were offset by increases in output of many peacetime
products.
Output of coal and crude petroleum decreased sharply
in the early part of October as a result of industrial 'dis­
putes. Since the last week of October production of these
minerals has increased considerably; in the early part of
November bituminous coal production was at the highest
rate since the spring of 1944.
Employment
Employment in munitions industries and in Federal war
agencies declined further in October, while in most estab­
lishments engaged in civilian activities employment ined. Employment at automobile factories gained about
> cent in October, and there were important increases
r
me other manufacturing lines, in construction, and in
’ade and service industries. Employment at coal mines
>ed temporarily as a result of work stoppages.
Distribution
tribution of commodities to consumers continued to
se in October and the first half of November. Sales
ail stores selling both durable and nondurable goods
about 15 per cent higher than a year ago. At deent stores sales advanced 8 per cent from September
tober, according to the Board’s seasonally adjusted
 and, on the basis of rate of sales during the first half
member a new peak- is indicated this month.



Aug.
1945
231
136
123
92
205
124
235
198
217
129r
129
133
376
159
170
218
130
187
64
126r

July
1945

Sept.
1944

221

222

136
180

146

86

40
153
141
219
190
217
139
115

165
118
252r
212

232
129r
98
141
363
170
177
232
223
182
85
161r

121

110

334
138
156
225
96
168
81
150

% Change
Sept. 1945 from
Aug. ’45
Sept. ’44
+ 5
+ 3
— 10
— 10
+ 2
+ 2

— 4
+ 1
— 3
— 2
— 17
—

1

- 6
— 4
+ 6
—27
— 4
— 5
+ 33

+ 9
— 4
— 8
+108
+ 37
— 10
+
3
+
5
— 3
+ 10
+
1
+ 12
+ 8
+ 4
+ 2
—

1

+
7
— 25
+ 11

• Compiled by the Board of Governors of the Federal Reserve System

Railroad shipments of revenue freight have increased
since the early part of October, although they usually de­
cline during this season, and in the middle of November
they were almost as large as in the same period a year ago.
The increased number of carloadings has reflected a sharp
rise in coal shipments since the miners have gone back to
work as well as a steady expansion in shipments of mer­
chandise for civilian use.
Commodity Prices
Wholesale prices of farm products and foods continued
to advance from the middle of October to the middle of
November and reached the previous peak levels prevailing
in June. Prices of cotton, grains, and various other prod­
ucts were above the June levels, while prices of fresh fruits
and vegetables were below the earlier seasonal peaks. Butter
prices rose to the new maximum level after the subsidy was
d.scontinued in October; the subsidy on flour was increased
for the month of November.
Maximum prices for cotton goods, building materials, and
various other industrial products were raised somewhat furr
ther, while in certain other cases, like nylon hosiery, reduc­
tions in maximum prices were announced. The prices an­
nounced for new passenger cars were close to 1942 levels,
which were substantially above 1939 prices.
Bank Credit
Since the end of hostilities the rate of monetary expan­
sion has slackened, reflecting reduced Government expen­
ditures. Government war loan accounts at member banks
in leading cities were reduced 5.1 billion dollars between
August 15 and November 14, compared with a decline of
7.8 billion in the same period last year. Adjusted demand
deposits at these banks increased 2.1 billion in the three
months, compared with 4.5 billion last year. The growth
in time deposits was only slightly less than in the same
period a year ago. Currency in circulation has also grown
at a much slower rate; during the past three months the
increase was less than half that of the same period last
year.
With reduced expansion in member bank required re­
serves and in currency, Reserve Bank Credit has increased
more slowly than in previous interdrive periods. A part
of the increase has been in advances to member banks.
Member bank excess reserves have increased somewhat and
at 1.2 billion dollars are larger than usual at this stage of
war loan drives.
Commercial loans at reporting banks, both those in New
York City and outside, have increased somewhat more than
usual seasonal amount. Since the beginning of September
these loans have grown 650 million dollars compared with
340 million during the same period of 1944'. Loans for
purchasing and carrying United States Government securi­
ties, though contracting as usual in periods between war
loan drives, continued well above previous interdrive levels.
By mid-November such loans both to brokers and dealers
and to other customers were already starting to expand
in connection with the current drive.

■MONTHLY REVIEW

FEDERAL RESERVE BANK OF RICHMOND

DEBITS TO INDIVIDUAL ACCOUNTS

(All Figures in Thousands)
Change in Amount from
November 14
10-17-45
11-15-44
1945

ITEMS

Total Gold Reserves...............
Other Reserves .....................
Total Reserves .................
Bills Discounted
Industrial Advances . . .
Gov. Securities, Total...........
Bonds ..................................
Notes ....................................
Certificates .........................
Bills ....................................
Total Bills & Securities.. =
Uncollected Items .
Other Assets .........................
Total Assets .....................

$1,117,898
13,831
1,131,729
18,724
65
1,361,217
60,038
120,406
450,367
730,406
1,380,006
183,823
18,488
$2,714,046

—
—
—
—
—
—
+
+
+

98,050
1,898
2,413
8,372
85,367
93,146
9,590
4,754
76,941

+ 177,875
+
1,294
+ 179,169
+ 14,724
—
73
+ 207,528
+
2,333
+ 68,830
+ 269,117
— 132,752
+ 222,179
+ 27,124
+
5,949
+ 434,421

Fed. Res. Notes in C ir..
Deposits, Total .....................
Members’ Reserves ............
U. S. Treas. Gen. A cct.. .
Foreign ...............................
Other Deposits ...................
Def. Availability Item s..
Other Liabilities .
Capital Accounts . . . . .
Total Liabilities ...........

$1,721,349
804,612
736,221
27,091
33,677
7,623
160,381
596
27,108
$2,714,046

+
+
+
+
—
—
+
+
+
+

24,408
47,050
40,054
12,441
4,760
685
4,977
26
480
76,941

+ 278,287
+ 123,643
+ 110,342
+ 22,345
— 14,306
+
5,262
+ 26,984
—
7
+
5,514
+ 434,421

+ 155,527
+
216
+ 155,743
+
4,904

0

41 REPORTING MEMBER BANKS— 5TH DISTRICT
(All Figures in Thousands)
Change in Amount from
November 14
11-15-44
10-17-45
1945

ITEMS

Total Loans .........................
$ 331,060
151,309
Bus. & Agri. L oan s..*....
49,560
Real Estate Loans.............
All Other Loans...............
130,191
Total Security Holdings. . .
1,724,659
U. S. Treasury Bills ............
53,210
U. S. Treasury Certificates.
310,833
279,806
U. S. Treasury Notes ........
U. S. Gov. Bonds ...............
1,016,406
Obligations Gov. Guarant’d
153
Other Bonds, Stocks & Sec.
64,251
Cash Items in Process o f Col.
152,594
Due from Banks.....................
154,531*
41,211
Currency & Coin.....................
364,718
Reserve with F. R. Bank. . .
73,587
Other Assets ...........................
$2,842,360
Total Assets .
Total Demand Deposits........
Deposits of Individuals. . . .
Deposits of U. S. Gov.......
Dep. of State & Local Gov.
Deposits of Banks.............
Certified & Officers’ Checks
Total Time Deposits..............
Deposits o f Individuals. . .
Other Time Deposits..........
Liabil’ t’ es for Borrow’d Money
All Other Liabilities. .
Capital Accounts . .
Total Liabilities ........

$2,245,729
1,367,436
276,040
86,432
485,599*
30,222
357,682
344,388
13,294
11,000
95,443
132,506
$2,842,360

+
+
+
+
+
—

+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
—
—

+
+

9,155
9,245
556
466
14,077
6,098
400
9,329
18,306
23
621
31,964
7,056
1,405
21,783
978
72,306

+ 36,941
+ 12,841
425
+
+ 23,675
+ 273,264
— 31,297
— 6,291
+ 42,410
+ 273,785
— 15,776
+ 10,433
+ 35,217
162
+
4,116
+
+ 38,361
7,008
+
+ 395,069

67,236
54,462
25,663
4,624
30,097
3,716
3,203
3,201
2
500
1,240
3,607
72,306

+
+
+
+
+
+
+
+
+
+
+
+

300,529
:L49,003
:L03,758
3,986
34,548
9,234
63,152
63,665
513
9,500
7,304
14,584
395,069

♦Net figures, reciprocal balances being eliminated.

DEPOSITS IN MUTUAL SAVINGS BANKS
S Baltimore Banks
Total Deposits

Oct. 31, 1945
$337,725,426

Sept. 30, 1945
$333,978,184

Oct. 31, 1944
$291,932,451

September 1945..........
October 1944.............
10 Months 19 4 5 ....
10 Months 1944___




No. Carolina So, Carolina Virginia
198,080
16,273
151,948
185,513
139,804
16,175
214,537
162,551
18,602
2,053,646
1,563,964
180,682
2,179,018
1,669,435
188,775

District of Columbia
Washington ............
Maryland
Baltimore ................
Cumberland ............
Frederick ................
Hagerstown ..........
North Carolina
Asheville ...............
Charlotte ................
D’urham .................
Greensboro ............
Kinston .................

10 Mos. % chg. from
1945
10 Mos. *44

Oct. 1944

$ 542,466

+ 15

$ 5,509,140

+ 14

785,352
15,480
13,502
18,620

+ 8
+ 12
— 4
+ 11

7,907,617
146,336
122,768
172,173

+ 4
+ 11
0
+ 1

31,311
151,053
140,695
39,044
28,897
67,324
35,548
43,712
96,616

+ 30
+ 14
+ 38
+ 20
+ 23
+ 21
— 14
+ 30
+ 23

283,313
1,380,409
835,182
403,779
125,377
577,305
360,577
168,671
707,617

+ 21
+ 9
+ 16
+ 19
+ 21
+ 7
— 5
+ 26
+ 9

16
16
23
13

413,854
533,441
417,135
242,535

+ 6
+ 8
+ 11
+ 11

20,452
41,233
23,399
21,068
125,804
16,252
407,311
47,933

+ 19
+ 24
+ 12
— 5
+ 6
+ 6
+ 7
+ 11

203,160
207,404
222,183
231,568
1,208,793
166,736
3,439,469
449,655

+ 35
+ 24
+ 6
— 10
+ 1
+ 6
+ 5
+ 9

25,827
85,105
19,877
35,575
18', 122

+ 14
+ 8
+ 24
+ 4
+ 4

245,421
875,465
176,789
377,026
190,536

+ 5
+ 7
+ 16
+ 22
+ 17

$3,082,240

+ 12

$28,301,434

Wilmington ............
Winston-Salem . . . .
South Carolina
Charleston ..............
Columbia ...............
Greenville ..............
Spartanburg ..........
Virginia
Charlottesville . . . .
Danville ..................
Lynchburg .............
Newport News

43,929
58,635
53,654
28,444

Portsmouth ............
Richmond ............. .
Roanoke ...................
West Virginia
Bluefield .................
Charleston ...............
Clarksburg .............
Huntington .............
P arkersburg............
District Totals

% chg. from

...

+
+
+
+

+

8

COMMERCIAL FAILURES
Number Failures
District
U. S.
0
64
1
62
0
74
10
708
12
1,054

MONTHS
September 1945 . ..
October 1945 ........
October 1944 ........
10 Months 1945...
10 Months 1944...

Total Liabilities
District
U. S.
0
1,658,000
$
9,000
$ 3,114,000
0
3,819,000
$1,518,000
$27,303,000
652,000
26,848,000

Source: Dun & Bradstreet.

COTTON CONSUMPTION AND ON HAND—BALES
October October
1945
1944
Fifth District States:
Cotton consumed ........
366,301
395,690
Cotton Growing States:
Cotton consumed ..............
667,539
700,160
Cotton on hand Oct. 31 in
consuming establishments 1,646,567 1,744,791
storage & compresses . . . 9,107,041 11,835,556
United States:
759,806
Cotton consumed .............
793,976
Cotton on hand Oct. 31 in
consuming establishments 1,912,212 1,971,866
storage & compresses
9,230,766 11,984,390
Spindles active, U. S .. .
. 21,721,792 22,228,138

Aug. 1 to Oct. 31
1944
1945
1,068,609

1,209,472

1,940,880

2,142,601

2,200,617

2,425,139

RAYON YARN DATA

COTTON CONSUMPTION— FIFTH DISTRICT
In Bales
MONTHS

(000 omitted)
October
1945

Oct. 1945
District
366,301
341,492
395,690
3,798,292
4,037,228

Sept. 1945

Oct. 1944

Rayon Yarn Shipments, L b s ....
Staple Fiber Shipments, L bs.. .

52,600,000
15,000,000

47.900.000
11.900.000

47.800.000
14.600.000

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

7.100.000
4.600.000

6,000,000
4,800,000

8.400.000
2.700.000

Source : Rayon Organon.

MONTHLY REVIEW

BUILDING PERMIT FIGURES

WHOLESALE TRADE,

Total Valuation
October 1944
October 1945
Maryland
Baltimore .....................................
Cumberland ........: .......................
Frederick .....................................
Hagerstown .................................
Salisbury ......................................

$ 2,881,056
65,800
46,150
58,365
29,690

Virginia
Danville ...........
...................
Lynchburg .......... .......................
Norfolk ..................... ...................
Petersburg ...................................
Portsmouth ...................................
Richmond .....................................
Roanoke .............. .......................

210,689
162,753
282,340
4,900
69,125
987,479
201,079

11,090
16,002
159,625
3,325
97,565
83,344
78,322

West Virginia
Charleston ...................................
Clarksburg ...................................
Huntington ...................................

387,079
70,828
620,142

37,774
4,990
65,775

286,692
303,222
258,790
305,605
160,515
101,400
116,400
69,685
123,283

14,685
27,659
10,585
36,005
26,373
182,025
200
450
124,985

Greenville .....................................
Spartanburg .................................

167,276
88,125
23,626
70,062

30,069
12,587
7,200
68,460

District of Columbia
Washington .................................

2,245,524

1,461,415

$10,397,680
$54,342,977

$ 3,082,227
$25,596,152

North Carolina
Asheville ...............................
Charlotte ...............................
Durham ........................................
Greensboro ...................................
High Point .................................
Raleigh ........................................
Rocky Mount ...............................
Winston-Salem

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

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

10 Months

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

$

473,185
5,257
15,975
4,930
22,370

201 FIRMS

Net Sales
Stock
Oct. 1945
Oct. 31, 1945
compared withcompared with
Oct.
Sept. Oct. 31 Sept. 30
1944
1944
1945
1945

LINES
Auto supplies (9)* ........
Drugs (10)* ...................
Dry Goods (4 )* .................
Electrical Goods ( 6 ) * . . . .
Groceries (71)* ..............
Hardware (10)* ..............
Industrial Supplies (4 )*.
Paper & Products (7 )* ..
Tobacco & Products (9)*
Miscellaneous (71)* . . . .
District Average (201) *

+19
+10
+ 2
•
—12
-f-16
+20
+14
+ 0
— 2
+ 1
+ 7

+ 4
+ 13
+ 31
— 2
+ 22
+ 41
+ 14
+ 25
+ 11
+ 17
+ 18

+

9

+ 20
— 7
+ 6
+ 4
— 20
+ 25
+ 0
+ 3

+

Ratio Oct.
collections
to accts.
outstand’ j
Oct. 1

4

+ 35
+ 14
+ 4
— 3
+ 4
— 2
+ 10
+ 10

114
129
100
97
178
111
125
104
165
160
139

Source: Department of Commerce
*Number of reporting firms.

RETAIL FURNITURE SALES
Percentage changes in Oct. and 10 Mos. 1945
Compared with Compared with
ber 1944
10 Mos. 1944
+ 22
+ 14
+ 29
+ 4
+ 27
+ 13
+ 44
+ 19
+ 13
+ 15
+ 9
+ 2
+ 24
+ 11

STATES
Maryland (5)* ...........................
District o f Columbia ( 4 ) * . . . .
Virginia (22)* ...........................
West Virginia (1 0)* .................
North Carolina (19)* .............
South Carolina (14)* ..............
District (74)* .........................

Individual Cities
Baltimore, Md. (5 )* .................
Washington, D. C. (4)* ..........
Lynchburg, Va. (3 )* ..................
Richmond, Va. (7)* ..................
Charleston, W. Va. (3 )* ..........
Charlotte, N. C. (4 )* ..............
Columbia, S. C. (4 )* ................

+
+
+
+
+
+
+

22
29
45
35
64
42
7

+ 14
+ 4
+ 19
+ 19
+ 25
+ 10
— 1

* Number of reporting stores
AUCTION TOBACCO MARKETING
Producers’ Tobacco Sales, Lbs.
October
October
Price per hundred
1944
1944
1945
1945
STATES
$40.91
$40.42
4,428,280
South Carolina . . .
782,956
44.71
41.67
216,543,009
North Carolina . . . 244,383,558
44.41
41.36
44,781,947
Virginia ................ 55,575,374
$41.61
$44.64
265,753,236
District Total .. 300,741,888
42.36
43.78
655,274,717
Season Through. 851,544,957

TOBACCO MANUFACTURING
October
•
i
1945
; Smoking & chewing tobacco
27,368
(Thousands of lb s.). . .
i Cigarettes (Thousands) 31,340,459
9,988
| Cigars (Thousands) . ..
3,783
; Snuff (Thousands o f lbs)

% change
from
Oct. 1944

10 Mos.
1945

+ 9
+ 59
+ 6
+ 3

234,383
219,439,974
3,593,011
36,911

% change
from
10 Mos.'44
+
+
+
+

16
9
3
7

.............................................. ...... • --------------------—
1
I

DEPARTMENT STORE TRADE
Richmond
Percentage
+ 19
Percentage
+ 14
Percentage
+ 4
Percentage
+ 38
Percentage
+ 16
Percentage
60
Percentage
37

Baltimore
Washington
Other Cities
District
change in Oct. 1945 sales, compared with sales in Oct. 1944 :
+10
+12
+ 17
+ 13
chg. in 10 mos. sales 1945, compared with 10 mos. in 1944 :
+ 9
+ 9
+ 15
+ 11
chg. in stocks on Oct. 31, 1945, compared with Oct. 31, 1944:
+ 2
+10
— 1
+ 5
chg. in outstand’g orders Oct. 31, 1945 from Oct. 31, 1944:
+22
+22
+40
+ 25
chg. in rec’v’ bles Oct. 31, 1945 from those on Oct. 31,1944:
+10
+ 3
+10
+ 8
of current receivables as of Oct. 1 collected in October:
62
61
57
61
of instalment receivables as of Oct. 1 collected in O ct.:
38
32
41
35

Maryland Dist. of Col. Virginia West Va. N . Carolina S. Carolina
Percentage chg. in Oct. 1945 sales from Oct. 1944 sales, by States:
+ 10
+12
+12
+18
+18
+ 9
Percentage chg. in 10 mos. sales 1945 from 10 mos. sales 1944:
+ 9
+ 9
+11
+17
+12
+ 8

CONSTRUCTION CONTRACTS AWARDED

STATES
[ Maryland ...................
' Dist. o f Columbia........
Virginia .......................
West Virginia ............
North Carolina ..........
South Carolina ............
Fifth District ..........

Sept. 1945
$ 6,937,000
1,592,000
5,045,000
2,899,000
9,367,000
1,030,000
$26,870,000

Source : F. W. Dodge Corporation




% chg.
% chg.
from
from
Sept. 1944
9 M os.’ 45 9 M os.’ 44
+
2
$ 74,632,000
+ 3
— 20
28,025,000
+38
— 44
82,894,000
— 8
— 56
17,071,000
— 17
+ 144
50,143,000
+38
— 17
14,094,000
— 24
— 9
$268,859,000
+ 3

SOFT COAL PRODUCTION IN THOUSANDS OF TONS
REGIONS
West Virginia
Maryland ...............
Fifth District ,
United States . .
% in District. . .

October
1945
8,603
1,292
171
10,066
38,580
26.1

October
1944
13,711
1,695
158
15,564
51,813
30.0

%
chg.
— 37
— 24
+ 8
— 35
— 26

10 Mos.
1945
124,775
14,997
1,516
141,288
476,150
29.7

10 Mos.
1944
139,186
16,856
1,697
157,739
523,407
30.1

%
chg.
— 10
— 11
— 11
— 10
— 9