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MONTHLY

REVIEW

o f Financial and Business Conditions

F ifth
Federal

Re s e r v e
D is tr ic t

Federal Reserve Bank, Richmond, Va.

October 31, 1941

Summary of September Business Conditions
T

H E aggregate volume o f business and industry in
the Fifth Federal Reserve district in September and
early October expanded further, chiefly due to seasonal
influences. In banking, Federal Reserve notes in actual
circulation increased sharply as the demand for currency
increased with the opening o f additional tobacco markets
and the beginning o f the cotton marketing season. Mem­
ber bank reserve deposits and investments in securities
rose last month, and loans to business and industry at
reporting member banks advanced. The Federal Reserve
Bank o f Richmond increased its holdings o f Government
securities through a redistribution o f System holdings
among the twelve Reserve banks.
Distribution of consumer goods showed the usual sea­
sonal increase in September except in furniture and auto­
mobiles. Department store sales rose 11 per cent from
August to September, and in the latter month were 19
per cent above September 1940 sales. There was a sub­
stantial wave o f buying of taxed items at the end o f
September, especially in furs, jewelry, cosmetics, and
certain light and heavy electrical household appliances.
Furniture sales showed a normal decrease from August
sales, in which month furniture stores run special sales,
but September business was 9 per cent above that o f
September last year. Wholesale trade in September in
the Fifth district exceeded August 1941 trade by 10 per
cent and September 1940 trade by 49 per cent. Auto-

mobile sales dropped sharply from August sales and did
not pick up seasonally after the introduction o f new
models, partly because o f increased prices for 1942 cars
and partly because o f a temporarily saturated market,
many buyers having anticipated their needs for new cars
by purchasing 1941 models before new taxes took effect,
according to some dealers’ reports.
Industrially the district worked at virtual capacity
levels in September. Cotton textile mills, many o f them
working on defense orders, consumed more cotton than
in any previous September, and tobacco manufacturers
set a new all time monthly record in the production o f
cigarettes. Bituminous coal mined in September was 18
per cent above the September 1940 tonnage. Shipyards,
airplane factories, rayon yarn mills, chemical industries
and lumber mills continued operations at or near record
levels and construction while somewhat handicapped by
priorities, showed no signs o f recession.
The long drought prevented planting o f fall crops and
germination o f seeds, and caused deterioration o f late ma­
turing crops, but on the other hand was favorable for
cotton picking. Tobacco prices advanced further on auc­
tion markets, and assured tobacco growers o f larger cash
returns for a smaller crop in 1941 than they obtained
from the 1940 crop. Cotton prices in September were
also far above 1940 prices, but the 1941 yield o f cotton
in the Fifth district is 45 per cent less than last year’s
crop.

BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT

September 1941
Debits to individual accounts (25 cities).......
Sales, 79 department stores, 5th district.......
Sales, 40 furniture stores, 5th district.............
Sales, 207 wholesale firms, 5th district...........
Registrations, new autos, 5th district...............

$1,824,609,000
$ 17,355,089
1,601,960
$
$ 19,771,000
9,408

Tobacco sold in 5th district (Pounds).............
Average price o f tobacco, per 100 lbs............
Growers' receipts from tobacco, 5th district..
Number o f business failures, 5th district.......
Liabilities in failures, 5th district.....................
Value o f building permits, 29 cities...............

235,402,972
29.18
68,679,635
25
367,000
$
$ 13,876,928

Value of contracts awarded, 5th district.......
Cotton consumption, 5th district (B a les).....
Cotton price, cents per lb., end of month.........
Print cloths, 39 in., 80x80s, end of month.......
Rayon yarn shipments, U. S. (Pounds).......
Rayon yarn stocks, U. S. (Pounds)..............„
Bituminous coal mined, U. S. (T o n s ).............
Ceiling price established by O P A C S .......
Digitized for ♦
FRASER



$
$

$

77,738,000
408,449
16.99
10.75*
37,000,000
4,900,000
45,464,000

August 1941

September 1940

% Change
Month
Year

$1,738,193,000
$ 15,699,692
$
2,165,273
$ 17,904,000
21,412

$1,309,689,000
$ 14,535,036
1,464,228
$
$ 13,244,000
10,463

+
+
—
+
—

113,426,399
26.66
30,243,063
32
$
377,000
$ 12,511,101

224,219,844
15.87
35,582,505
37
348,000
$
$ 12,163,781

$ 146,093,000
393,671
16.54
10.75*
37,300,000
4,200,000
45,650,000

$

+108
+ 9
+127
— 22
— 3
+ 11
— 47
+ 4
+ 3
0
— 1
+ 17
— 0

$
$

$
$

34,192,000
302,833
9.42
7.00
30,900,000
8,300,000
38,650,000

5
11
26
10
56

+
+
+
+
—

39
19
9
49
10

4“ ^
+ 84
+ 93
— 32
+ 5
+ 14
+127
+ 35
+ 80
+ 54
+ 20
— 65
+ 18

2

MONTHLY REVIEW
E M PLO Y M E N T

BANK ING STATISTICS
RESERVE BAN K STATEMENT ITEMS
Fifth District
000 omitted
ITEMS
Oct. 15
Sept. 15
Oct. 15
1941
1941
1940
Discounts held ..............................................
$
0
$
38
$
40
Foreign loans on g o l d ................................
0
9
22
Industrial advances ....................................
793
811
821
134,996______119,663______123,938
Government securities .............................
Total earning assets .............................
$135,789
$120,521
$124,821
Circulation of Fed. Res. notes.................
390,164
360,870
256,825
Members* reserve deposits .....................
483,451
458,036
340,160
Cash reserves ................................................
809,474
767,512
541,669
Reserve ratio ................................................
85.11
85.78
82.08
SELECTED ITEMS— 41 REPORTING MEMBER BANKS
Fifth District
000 omitted
Oct. 16
Oct. 15
Sept. 10
ITEMS
1940
1941
1941
$131,961
$155,587
$161,296
Loans to business & agriculture...........
155,905
170,596
172,429
All other loans ..........................................
455,402
505,380
518,040
Investments in securities .......................
225,268
303,481
325,689
Reserve bal. with F. R. b a n k ...............
21,758
28,845
26,593!
Cash in vaults ............................................
615,758
726,655
778,491
Demand deposits ........................................
203,763
210,660
211,656
Time deposits ..............................................
0
0
0
Money borrowed ........................................
M UTUAL SAVINGS BANK DEPOSITS
9 Baltimore Banks

Total deposits

Sept. 30,
1941

Aug. 31,
1941

Sept. 30
1940

$224,490,776

$223,974,988

$222,792,230

DEBITS TO INDIVIDUAL ACCOUNTS
Fifth District
000 omitted
Sept.
Aug.
1940
1941

Sept.
1941

CITIES
Dist. of Col.
Washington

of Change
Month Year

%

.........

$ 359,671

$ 347,499

$ 263,524

+

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

491,249
10,643
12,164

499,706
10,351
11,833

358,270
7,967
9,044

+
+

18,753
94,055
66,612
25,906
52,942
21,280
59,313

18,026
89,911
53,725
26,259
49,568
19,222
49,170

28,110
38,835
30,003
16,460

Virginia
Danville ...............
Lynchburg ...........
Newport News . .
Norfolk .................
Portsmouth .........
Richmond .............
Roanoke ...............
West Virginia
Charleston ...........
Huntington .........
Parkersburg ........
District Totals ..

4

+ 36

— 2
3
3

+ 37
+ 34
+ 34

13,624
63,278
42,771
19,406
38,464
12,213
41,430

+

+
+
+
+
+
+
+

38
49
56
33
38
74
43

28,067
36,448
27,496
15,527

18,487
28,092
19,348
10,255

+ o
+ 7
+ 9

+
+
+
+

52
38
55
61

17,026
18,404
13,492
73,899
6,647
236,403
34,601

9,818
16,761
14,214
74,798
6,937
202,956
34,925

10,361
14,599
13,515
53,521
4,766
164,069
28,184

+ 73
+ 10
— 5
— 1
— 4
+ 16
— 1

+ 64
+ 26
— 0
+ 38
+ 39
+ 44
+ 23

63,892
21,594
12,655
$1,824,609

61,188
21,351
12,437
$1,738,193

46,947
17,236
10,318
$1,309,689

+ 4
+ 1
+ 2

+ 36
+25
+ 23
+ 39

North Carolina
Asheville . . . . . . . .
Durham .................
Greensboro ...........
Raleigh .................
Wilmington .........
Winston-Salem . .
South Carolina
Charleston ...........
Columbia .............
Greenville ...........

4
+ 5
+ 24
— 1
+ 7

+ 11
+ 21

+

6

+

5

C O M M E R C IA L FAILU RES
PERIODS
September
August
September
9 Months,

1941...............
1941...............
1940...............
1941...............

Source: Dtm & Bradstreet




Number of Failures
District U. S.
25
32
37
307

735
954
976
9,299
10,398

Total Liabilities
District
U . S.
$ 367,000
377,000
348,000
3,475,000
5,233,000

$

9,393,000
11,134,000
11,397,000
106,105,000
124,088,000

The following figures, compiled for the most part by
the Bureau o f Labor Statistics, show the trends o f em­
ployment and payrolls in the Fifth district from August
to September 1941 :
Percentage change from
Aug. 1941 to Sept. 1941
in number
in amount
on payroll
of payroll

STATES

+1.6
+ 1.1

Maryland .................
Dist. of Col...............
Virginia ...................
West Virginia . . . .
North Carolina . . .
South C arolina___
District Average

+ 4.1
+ 3.4
+ 3.4
— 1.5

+ 1.4

+1.1
+0.1
+1.0

+2.1
+2.2
+2.1

+ 1.3

A U TO M O B ILE

RE GISTRA TION S

Sales o f new passenger automobiles declined sharply
in September from August, and were below sales in
September 1940, the first decline from the corresponding
month o f the preceding year since September last year.
Sales last month were the lowest for any month since
October 1938. A t the opening o f September dealers had
incomplete stocks o f 1941 model cars, and when 1942
models appeared the usual seasonal advance in sales failed
to materialize. Some dealers report that so many buyers
anticipated their needs for new cars that the 1942 models
attracted* relatively little attention and increased prices
met stiff resistance from the public. W ith restricted out­
put o f cars ordered by the Government, higher prices for
cars due to increased taxes and costs o f manufacture, and
a temporarily saturated market, the prospects for new car
sales in the 1942 model year are not bright, and new car
salesmen in many instances are trying to secure other
work. Stocks o f good used cars are quite low on many
dealer lots, but the demand for used cars also has declined.
The following registration figures for new passenger
cars were furnished by R. L. Polk & Co., o f Detroit:
REGISTRATIONS OF N E W PASSENGER CARS— NUMBER
Sept.
1941

STATES
Maryland ...........
Dist. of Col. . . .
Virginia .............
West Virginia . .
No. Carolina . . .
So. C a rolin a___
District

...........

Sept.
1940

1,572
753
2,994
1,013
1,972
1,104

1,945
1,146
2,611
1,232
2,447
1,082

9,408

10,463

%

Change

9 Months 9 Months
1941
1940

19
34
15
18
19
2

48,611
26,541
62,868
28,611
55,116
30,184

36,669
20,525
41,769
23,788
38,582
20,810

— 10

251,931

182,143

—
—
+
—
—
+

%
Change
+
+
+
+
+
+

33
29
51
20
43
45

+ 38

CO N STR U C TIO N

Building permits issued in 29 Fifth district cities in
September 1941 totaling $13,876,928 showed increases
o f 11 per cent over $12,511,101 in August this year and
14 per cent over $12,163,781 in September last year.
Baltimore led in September 1941 permit valuation with
$5,080,902, Washington was second with $3,942,950,
Richmond third with $1,450,925, N orfolk fourth with
$528,650, and Charlotte fifth with $325,352.
The aggregate value o f September contraot awards for
construction in the Fifth district is not yet available, but
will exceed the September 1940 figure by a substantial
margin. Figures on contract awards in August 1941,
which set a Fifth district record but were not available

MONTHLY REVIEW
by states when the September 30 R eview went to press,
were reported by the F . W . Dodge Corporation as fo llo w s:
CONSTRUCTION CONTRACTS AW ARDED
STATES

Aug. 1941

Maryland .............................
Dist. of Col.............................
Virginia ..................................
West Virginia .....................
North Carolina ...................
South Carolina ...................
Fifth District .................

Aug. 1940

$ 20,034,000
$ 10,103,000
10,209,000
3,114,000
44,615,000
11,695,000
6,611,000
2,392,000
47,585,000
15,733,000
16,438,000_________ 4,326,000
$145,492,000

$ 47,363,000

% Change

+ 98
+228
+281
+176
+202
+280
+207

BITU M IN OU S C O A L M IN IN G

Production o f bituminous coal continued at a very high
level in September and output o f 45,464,000 net tons
exceeded September 1940 output o f 38,650,000 tons by
18 per cent. On a daily basis production o f 1,819,000
tons in September 1941 exceeded August output o f 1,756,000 tons by 4 per cent. Total production this calen­
dar year to October 11 of 382,737,000 tons exceeded
output o f 348,205,000 tons in the corresponding period
last year by 10 per cent. Shipments o f coal through
Hampton Roads ports to October 11 totaled 17,118,386
tons, a decline o f 3 per cent from 17,676,862 tons to the
same date last year. In the Fifth district production of
coal in September 1941, August 1941 and September 1940,
was as follow s:
Sept. 1941

West V ir g in ia .........................
Virginia ....................................
Maryland ..................................
5th District .......................
United States .....................
% in District .....................

Aug. 1941

12,851,000
1,687,000
169,000
14,707,000
45,464,000
32

13,492,000
1,675,000
156,000
15,323,000
46,026,000
33

Sept. 1940
11,471,000
1,310,000
114,000
12,8j 5,UO0
39,010,000
33

C O TTO N TEX TILES

Cotton textile mills were very active in September and
cotton consumption o f 875,682 bales in the United States
was the highest figure on record for that month of the
year. Mills worked chiefly on forward orders, new busi­
ness being small because both buyers and manufacturers
preferred to await an expected readjustment of ceiling
prices to bring them more nearly into agreement with raw
cotton. In secondary markets, sales o f finished cotton
goods were large in September. Mill margins for 17 con­
structions of medium and coarse cloths averaged 19.93
cents for the first four weeks in September against 20.53
cents in August 1941 and 12.26 cents in September 1940.
COTTON CONSUMPTION— FIFTH DISTRICT
In bales
MONTHS
September 1941...................
August
1941...................
September 1940...................
9 Months,
9 Months,

1941...................
1940...................

No. Carolina So. Carolina
224,429
164,228
211,537
163,146
164,788
124,872
1,943,074
1,487,307

1,463,664
1,157,029

A fter advancing steadily from the middle o f August
to 17.74 cents per pound on September 12, spot cotton
prices for middling grade, 15/1 6 inch staple, on 10 Sou­
thern spot markets turned downward, and by October 17
had declined to 16.16 cents per pound. The decline was
due in part to an increase in prospective yield o f the 1941
crop, and in part to the refusal o f Congress to pass legis­
lation freezing Government owned cotton for the dura­
tion o f the emergency. On October 18, 1940 the average
cotton price on the 10 Southern markets was 9.33 cents.
‘ The third forecast on the 1941 cotton crop, issued on
October 8 by the Department o f Agriculture, raised the
estimate from 10,710,000 bales as o f September 1 to 11,061,000 bales on October 1, an increase o f 351,000 bales,
or 3 per cent. In the Fifth district, prospective yields
increased 14,000 bales in North Carolina and 1,000 bales
in Virginia, but decreased 11,000 bales in South Carolina.
Production figures in Fifth district states are on page 4.
COTTON CONSUMPTION AN D ON HAND— BALES

Virginia
19,792
18,988
13,173

District
408,449
393,671
302,833

166,054
109,830

3,572,792
2,754,166

R A Y O N Y A R N PRO D U CTIO N

Rayon Organon reports shipments o f rayon filament
yarn to domestic consumers totaling 37,000,000 pounds
in September 1941, a slight decline from 37,300,000
pounds shipped in the longer month of August but a
substantial increase over shipments of 30,900,000 pounds
in September 1940. In the first 9 months o f 1941 ship­




ments of 333,000,000 pounds o f yarn exceeded by 18 per
cent shipments o f 283,200,000 pounds in the same period
last year.
Stocks o f yarn held in reserve by manu­
facturers rose from 4,200,000 pounds on August 31,
1941, to 4,900,000 pounds on September 30, nearly
all o f the slight increase being attributable to the
pool yarn set aside for Government allocation to for­
mer users of silk.
A fter remaining generally stable
since September 1939, rayon yarn prices were revised in
September and early October, viscose yarns advancing 1
to 5 cents per pound, acetate yarns 3 to 5 cents, and cuprammonium yarns 2 to 5 cents. These increases are
moderate not only as regards the absolute amount o f the
increases but also as regards the relationship o f rayon
price increases to those that have occurred in other textile
fibers. For example Rayon Organon states that Sep­
tember 1941 rayon yarn prices were 18% below average
prices in 1932, while during the same period cotton prices
rose 171%, wool prices 135%, and silk prices rose 97% .
The inventory o f rayon yarn held by broad weavers at
the ei)d o f September 1941 totaled 23,400,000 pounds as
compared with 24,900,000 pounds at the end o f August
and 24,000,000 pounds on September 30, 1940. These
inventory figures have declined steadily each month from
a high o f 29,500,000 pounds held on June 30, 1941.
C O T T O N STATISTICS

SOFT COAL PRODUCTION IN TONS
REGIONS

3

Fifth district states:
Cotton consumed .....................
Cotton growing states:
Cotton consumed .....................
Cotton on hand Sept. 30 in
Consuming establishments
Storage & compresses . . . .

Sept.
1941

Sept.
1940

408,449

302,833

802,120

601,529

744,693

548,879

1,484,963

1,110,013

1,749,795

1,289,123

1,285,746
607,194
11,128,940 10,631,450

United States:
Cotton consumed ...................
875,682
638,235
Cotton on hand Sept. 30 in
Consuming establishments
1,636,521
784,116
Storage & compresses ........... 11,523,702 10,747,<
Exports of cotton ...........................

Aug. 1 to Sept. 30
This Year Last Year

189,215

90,555

Spindles active ................................ 22,963,944 22,281,476

................................
267,731

155,980

MONTHLY REVIEW

4
A U C T IO N T O B A C C O M A R K E TIN G

W HOLESALE TRADE, 207 FIRMS

Additional tobacco markets in North Carolina and
flue-cured markets in Virginia opened in September, and
sales in the Fifth district exceeded September 1940 sales
by nearly 5 per cent. Prices this year are much higher
than last year, the September average exceeding the Sep­
tember 1940 average by 84 per cent. The 1941 crop is ex­
pected to turn out 13 per cent below the 1940 yield, but
even with this reduction the aggregate receipts received
for this year’s crop should exceed 1940 receipts by 40 per
cent or more. Sales in September, all o f flue-cured type

Net Sales
September 1941
compared with
Sept.
Aug.
1940
1941

LINES
Automotive supplies (10)
Shoes (5) .......................
Drugs & sundries (15)
Dry goods (8) ...............
Electrical goods (18) .
Groceries (64) ...............
Hardware (14) .............
Industrial supplies (8)
Paper & products (10)
Tobacco & products (7)
Miscellaneous (48) . . .
Dist. Average (207).

$23.09
29.41
32.66
$29.18
28.36

41,193,905
175,372,553
7,653,386
224,219,844
276,907,401

18,740,881
197,172,013
19,490,078
235,402,972
348,829,371

$13.08
16.32
20.59
$15.87
16.34

TO B A C C O M A N U F A C T U R IN G

Cigarette production in September set a new monthly
record, and other tobacco products were turned out in
large volume. Bureau o f Internal Revenue receipts for
September indicate production o f tobacco products as
follows in the United States:
Smoking & chewing
tobacco, pounds ...............
Cigarettes, number .................
Cigars, number .......................
Snuff, pounds ...........................

Sept. 1941

Aug. 1941

26,561,000
18,760,571,160
506,070,675
3,194,316

24,489,824
17,776,522,190
491,027,685
2,971,991

25,879,985
14,889,814,717
475,725,260
2,848,874

North Carolina . . .
South Carolina . ..
Fifth District . .
Maryland

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

Department Store Trade
outstanding orders and outstanding receivables in
Sept. 1941 in comparison with Sept. 1940 figures:
Receivables
Orders
Stocks
Sales
+20
(+ ]
Richmond (5) ...................
+20
(+ 5
Baltimore (10) .................
Washington (7) ...............
+17
(+ i
Other Cities (12) ...............
+ 19 ( + 22)
Fifth District (79)* ...........
Same stores by States:
20
22
Maryland (13) .................
+ 22 ( + 23)
Virginia (16) ...................
+
18
(
+
2
0)
W est Virginia (15) .........
+ 17 ( + 19)
North Carolina (16) . . . .
+ 35 ( + 28)
South Carolina (12) . . .
* Includes stores reporting sales only.

+
+
+
+
+

36
34
31
26
32

+ 62
+ 82
+ 85
+ 113
+ 81

+
+
+
+
+

17
15
16
15
16

(+ )

Maryland

R ETAIL FURNITURE SALES

Maryland

Compared with
Sept. 1940

Compared with
9 Months 1940

Maryland (9) ...........
Dist. of Col. (7)
Virginia (13) ...........
North Carolina (5) .
South Carolina (6) .
District (40)

+ 15
+ 21
— 3
— 22
+ o
+ 9

+
+
+
+
+
+

27
37
24
24
40
30

Individual Cities:
Baltimore (9) ...........
Richmond (5) ...........
Washington (7) ___

+ 15
— 19
+ 21

+ 27
+ 9
+ 37

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

West Virginia
North Carolina . . .
South Carolina . . .
Fifth District . .
...............

West Virginia
North Carolina . ..
South Carolina . ..
Fifth District ..
Maryland

i Change in Sales, Sept. and 9 Months of 1941

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

West Virginia
North Carolina . . .
South Carolina . . .
Fifth District ..

Maryland

N ote:— Second figure under Sales, in parentheses, compares combined sales
in 9 months of 1941 with sales in first 9 months of 1940.




+ 5
— 21
+ 9
— 5
— 9
+ 5
— 0
— 11
+ 2
+ 1
+ 2
— 3

77
46
90
44
73
103
52
108
72
91
76
72

Cotton (Bales)
% Change

West Virginia . . .
North Carolina . . .
South Carolina . . .
Fifth District . .

Percentage increase or decrease in sales, stocks,

STATES

10
8
26
24
51
25
9
17
19
13
44
26

The drought throughout the Fifth district continued
through September and the first half o f October, and
late crops for the most part deteriorated further. The
planting of fall crops has been delayed by hard ground,
coupled with insufficient moisture to sprout seeds, and
pasture grasses died so much earlier than usual that far­
mers were forced to begin feeding stock ahead o f the
normal date. The following figures show forecasts o f
production made by the Department o f Agriculture on
the basis o f October 1 condition. Yield figures marked
( + ) were raised between September 1 and October l.t
and those marked ( — ) were lowered.

Sept. 1940

R E T A IL A N D W H O LESALE TR A D E

+

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

CROP FORECASTS
Price per Cwt.
1941
1940

Producers’ Tobacco Sales, Pounds
September 1941 September 1940

STATES

+ 7
+ 12
+ 13
+ 4
+ 28
+ 8
+ 4
— 2
+ 4
— 3
+ 10
+ 10

Source: Bureau of the Census.

tobacco, were as follow s:

So. Carolina .........
No. C a rolin a.........
Virginia .................
District Total . .
Season through

+ 65
+ 63
+ 37
+ 33
+ 100
+ 29
+ 35
+ 75
+ 48
+ 35
+ 52
+ 49

Ratio Sept.
Stocks
Sept. 30, 1941
collections
to accounts
compared with
Sept. 30 Aug. 31 outstanding
1941
1940
Sept. 1

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

North Carolina . . .
South Carolina . ..
Fifth District . .

North Carolina . . .
South Carolina . . .
Fifth District . .
Maryland

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

West V ir g in ia ----North Carolina . . .
Fifth District ..

(Compiled October 21, 1941)

. ..

Y ield
Yield
1941
1940
Acreage
25,000
+ 6
23,000 +
— 4
530,000 +
739,000
— 2
966,000
400,000—
— 3
953,000 +
1,730,000
Corn (Bushels)
16,596,000
17,535,000
— 8
— 4
33,050,000 +
36,490,000
12,626,000 +
12,852,000
— 7
— 2
47,400,000
44,733,000
— 2
22,964,000
24,304,000
— 3
135,914,000
132,636,000 +
Hay (Tons)
465,000 —
550,000
+
1
0
995,000 +
1,252,000
833,000
+ 2
812,000
1,021,000 +
975,000
621,000 +
539,000
+ 8
3,914,000 +
4,149,000
Tobacco (Pounds)
31,920,000
+ 3
29,325,000 —
— 2
84,933,000 — 100,509,000
— 10
2,240,000
2,790,000
464,560,000 +
526,505,000
+
1
+ 5
64,600,000 —
82,215,000
+
1
645,658,000 — 743,939,000
Irish Potatoes (Bushels)
2,294,000 —
2,898,000
+ 1
6,776,000
10,412,000
0
3,630,000
3,630,000
6,885,000 +
8,720,000
+ 7
2,730,000
3,192,000
+ 1
22,315,000 —
28,852,000
Sweet Potatoes (Bushels)
1,400,000 —
+ 11
1,485,000
+ 3
3,264,000 —
3,875,000
+ 8
7,200,000 —
7,104,000
+ 3
4,745,000 —
5,040,000
+ 6
16,609,000 —
17,504,000
Peanuts (Pounds)
— 6
153,750,000 — 216,000,000
— 5
269,640,000 — 371,000,000
— 30
13,650,000
23,250,000
— 7
437,040,000 — 610,250,000
Apples, Commercial (Bushels)
2,160,000 —
2,077,000
11,682,000 —
10,660,000
4,867,000 —
4,868,000
1,435,000 +
962,000
20,144,000 —
18,567,000

Yield
1930-1939
33,000
629,000
824,000
1,486,000
16,173,000
32,418,000
12,610,000
43,507,000
22,831,000
127,539,000
467,000
924,000
642,000
744,000
398,000
3,175,000
26,901,000
99,861,000
2,985,000
529,356,000
85,656,000
744,759,000
2,997,000
10,661,000
2,844,000
8,182,000
2,475,000
27,159,000
1,071,000
4,061,000
8,354,000
5,401,000
18,887,000
149,865,000
249,288,000
9,041,000
408,194,000
1,996,000
10,366,000
4,796,000
966,000
18,124,000

MONTHLY REVIEW, October 31, 1941

FEDERAL RESERVE BANK OF RICHMOND

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

PRODUCTION

Federal Reserve index of physical volume of
production, adjusted for seasonal variation, 19351939 average=100. By months, January 1935 to
September 1941.

Federal Reserve indexes of value of sales and
stocks, adjusted for seasonal variations, 1923-1925
average=100. By months, January 1935 to Sep­
tember 1941.

WHOLESALE PRICES OF BASIC COMMODITIES

r
I.

■ —

r

aa

f
/ !

V \ * TOTAL.-

\

«.

i

"1
!iI S V
j
ii
i\

Bureau of Labor Statistics’ indexes based on 12
foodstuffs and 16 industrial materials, August
1939=100. Thursday figures, January 3, 1935 to
October 16, 1941.

MEMBER BANKS IN 101 LEADING CITIES

Wednesday figures, January 2, 1935 to October
8, 1941. Commercial loans, which include indus­
trial and agricultural loans, represent prior to
May 19, 1937 so-called “ Other loans” as then re­
ported.




Industrial activity continu ed at a high rate in Septem ber and the first h alf
o f O ctober. Further advances in the output o f defen se products w ere accom pa­
nied by curtailm ent in som e lines o f civilian goods, particu larly autom obiles,
rubber, and silk. P rices o f industrial products increased fu rth er but agricu l­
tural prices declined a fter the m iddle o f Septem ber, and on O ctober 16 dropped
sharply in response to international developm ents.
PR O D U C TIO N
Industrial output increased by about the usual seasonal am ount in Septem ­
ber and the B oard's adjusted index rem ained at 160 per cent o f the 1935-1939
average, the same as in July and A ugust. C ontinued increases in activity w ere
reported in the m achinery, aircra ft, and shipbuilding industries. A t steel mills
activity in Septem ber and the first h alf o f O ctober was m aintained at about 97
per cen t o f capacity. O utput and deliveries o f n on ferrou s m etals likew ise re­
m ained at about capacity levels, w hile lum ber produ ction declined som ewhat
fro m the high A ugust rate. A u tom obile produ ction increased less than seasonaJly in Septem ber, follow in g the ch angeover to new m odels, and, accordin g to
prelim inary estimates, output in Septem ber w as considerably below the m axi­
mum quota that had been authorized by the G overnm ent.
In the textile industry a ctivity declined som ew hat in Septem ber, reflectin g
m ainly a fu rth er sharp reduction at silk mills. A ctiv ity at w ool mills rose to a
new high level, while at cotton mills there was little change fro m a rate slightly
below the peak reached last M ay. Shoe produ ction continued in large volum e,
and output o f m anu factu red fo o d products was m aintained near the peak A u gust
level. O utput o f chem icals likewise continued at earlier high rates, but at rubber
plants activity was considerably below the level o f last summ er ow ing to cu r­
tailm ent program s ordered by the G overnm ent.
Coal production, w hich during the summ er m onths had been unusually large,
increased less than seasonally in Septem ber, ow in g in part to tem porary w ork
stoppages at som e bitum inous and anthracite mines. Crude petroleum p rod u c­
tion advanced to record levels in Septem ber and the first h alf o f O ctober, and
output o f m etals and shipm ents o f iron ore dow n the Lakes continu ed at ab ou t
capacity.
V alu e o f construction con tra ct aw ards declined in Septem ber, a ccord in g
to figures o f the F. W . D odge C orporation, reflectin g ch iefly decreases in aw ards
fo r public p rojects w hich had been ex ception ally large in A u gust. A w ards fo r
private residential building also declined, w hile contracts f o r other private w ork
increased som ewhat fu rther. T otal awards in Septem ber, as in A u gust, w ere 80
per cent larger than in the correspon din g period last year. This higher level
reflected m ainly a greater am ount o f public construction , w hich w as n early three
tim es as large as a year ago, com pared w ith an increase o f abou t 10 per cent
fo r private construction.
On O ctober 9, the Supply P riorities and A lloca tion s B oard announced that,
effective im m ediately, no pu blic or private con stru ction p r o je c ts w hich use
critical m aterials could be started during the em erg en cy unless these p rojects
w ere either necessary f o r d irect national defen se or essential to the health and
sa fety o f the nation.
D IS T R IB U T IO N
D istribution o f general m erchandise show ed less than the custom ary sea­
sonal rise in Septem ber, fo llo w in g an unusually large volum e o f sales in A u gust.
D uring the past three m onths sales have been larger than in the correspon din g
period o f any previous year. In the first h a lf o f O ctober sales at departm en t
stores declined from the peak reached in late Septem ber w hen there w ere c o n ­
siderable consum er purchases, particu larly o f articles sub je t to higher taxes on
O ctober 1.
L oadings o f revenue freig h t in Septem ber increased less than seasonally,
particularly those o f m iscellaneous freig h t, w hich have been high in recen t
m onths, and loadings o f coal, w hich w ere curtailed during part o f the m onth
by w ork stoppages at som e mines. Shipm ents o f fo r e s t products declined con ­
siderably fr o m the high A u gust level.
C O M M O D ITY P R IC E S
P rices o f industrial products continued to advance in Septem ber and the
first h alf o f O ctober and F ederal price ceilings w ere announced fo r additional
com m odities, including leading types o f lum ber, coke, w astepaper, paperboard,
acetic acid, alcohols, and carded cotton yarns. In som e cases these ceilings w ere
below previously existing m arket quotations. P rice advances w ere perm itted,
how ever, f o r some other com m odities under F ederal control. Prices o f cotton
and o f food stu ffs increased fu rth er in the first h alf o f Septem ber, but subse­
quently declined, ow ing partly to seasonal influences. On Thursday, O ctober 16,
prices o f these com m odities dropped sharply.
B A N K C R E D IT
Com m ercial loans at m em ber banks continued to rise during Septem ber and
the first h alf o f O ctober, reflectin g in part defen se dem ands. Increases w ere
substantial both in N ew Y ork and in oth er leadin g cities. H oldings o f U nited
States G overnm ent obligations decreased, m ainly at banks in leadin g cities ou t­
side o f N ew Y ork. E xcess reserves o f m em ber banks show ed little change in
this period.
U N ITED S T A T E S G O V E R N M E N T S E C U R IT Y M A R K E T
F ollow in g a slight decline in the first h alf o f Septem ber, prices o f lon g ­
term Treasu ry partially tax-exem pt bonds increased during the la tter h alf o f
Septem ber and in the first part o f O ctober. The yield on the 2 - % per cen t bonds
o f 1960-65 reached a new record low o f 2.01 per cen t in O ctober. Prices o f
taxable bonds m oved w ithin a relatively narrow range du rin g the period w ith
yields slightly above previous low levels.