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MONTHLY REVI EW of Financial and Business Conditions mmm ____ F ifth Federal I % !KlCnWOflu A vji ff ^ A - ' va. 3 ...... 4 R eserve D is t r ic t Federal Reserve Bank, Richmond, Va. Buy W ar B onds October 31, 1942 Buy S a v in g s St a m p s INVEST FOR VICTORY NOW 2 MONTHLY REVIEW The General Situation in the Fifth District S E A SO N A L increases occurred in Fifth District busi Fifth district industry continued operations at capacity levels in September. Cotton textile mills, working chiefly on war orders, consumed more cotton than in any pre vious September, and rayon yarn shipments to consumers also set a new record for that month. Tobacco manufac turers set a new all time record in cigarette production for a single month, and bituminous coal production con tinued at a high figure. Construction work for civilian use declined to a low point, but the volume of public work for which contracts were awarded continued far above peace time levels. Shipyards, airplane factories, chemical industries and lumber mills continued to employ every available facility to increase output, and railroads in both passenger and freight traffic handled efficiently the largest volume of business in their history. ness in September and early October, except in lines restricted by regulations promulgated in the interest of the war effort. In banking, Federal Reserve notes in actual circulation increased sharply as the need for cur rency increased with the opening of additional auction to bacco markets and the beginning of the cotton selling sea son. The Federal Reserve Bank of Richmond increased its holdings of Government securities between September 15 and October 15 through allocation to it of its share of System purchases. Reporting member banks expanded commercial loans during the month, and also substantially increased investments in Government securities. Demand deposits expanded considerably. Distribution of consumer goods showed the usual sea sonal changes in September, increases occurring in most lines over the August volume. Department store sales rose 18 per cent from August to September, and in the latter month were 13 per cent above September 1941 sales, in spite of restrictions on sales of many types of mer chandise this year and a wave of buying of luxury goods which occurred in September 1941 to beat new taxes taking effect after October 1, 1941. Furniture store sales in September showed a seasonal decrease from August sales, in which month furniture stores run special sales, but the decrease was only 4 per cent, and sales were 2 per cent above September 1941 sales. Wholesale trade in Sep tember in 214 Fifth district firms exceeded August sales by 4 per cent, but were 4 per cent below sales in Septem ber last year. But in spite of large sums being currently spent in department stores, wearing apparel and specialty stores, furniture stores, etc., it is probable that substantially less is being spent for consumer goods than a year ago, since many types of merchandise which formerly absorbed a large part of aggregate expenditures are off the market entirely or sales are severely curtailed by Government regulations. Crops in the Fifth district turned out well this year. Increases in production over 1941 yields were reported for cotton, corn, oats, hay, tobacco, Irish potatoes, sweet potatoes, peanuts and commercial apples, while decreases in yields were reported for wheat and peaches. Very large financial returns will be realized from the district’s two leading cash crops, tobacco and cotton. The prospec tive yield of tobacco this year is 24 per cent above the 1941 figure, and the average price paid for tobacco on auction markets during August and September was 33 per cent above the average paid in the corresponding months last year. This year’s cotton crop is expected to be 58 per cent larger in the Fifth district than the 1941 crop, and current prices are running approximately 10 per cent above last year’s prices. A special effort to increase peanut production this year, largely for use in manufacturing peanut oil, resulted in a rise of 54 per cent in yield over last year. Both Irish and sweet potato crops, valuable sources of food, increased substantially in 1942, and pas ture conditions during most of the summer and fall were unusually good, and furnished excellent grazing later than in most years. FINANCIAL AND BUSINESS CONDITIONS IN THE FIFTH FEDERAL RESERVE DISTRICT Debits to individual accounts (25 cities).... Sales, 77 department stores, 5th district...... Sales, 114 furniture stores, 5th district......... Sales, 214 wholesale firms, 5th district........ Tobacco sold in 5th district (Pounds)......... Average price of tobacco, per 100 lbs.... ...... Growers’ receipts from tobacco, 5th district.. Number of business failures, 5th district.... Liabilities in failures, 5th district................ Value of building permits issued, 29 cities.... Value of contracts awarded, 5th district...... Cotton consumption, 5th district (Bales)...... Cotton price, cents per lb., end of month...... Rayon yarn shipments, U. S. (Pounds)........ Rayon yarn stocks, U. S. (Pounds)............. Cigarettes made, 5th district......................... Cigarettes made, U. S... ................................ Bituminous coal mined, 5th district (Tons).. Bituminous coal mined, U. S. (Tons)......... September 1942 $2,263,480,000 $ 19,739,670 $ 2,783,900 $ 17,434,000 270,651,001 $ 37.74 $ 102,150,130 $ $ $ 17 315,000 8,989,501 78,946,000 458,495 18.68 38,300,000 7,800.000 18,180,351,000 21,798,447,820 15,145,000 48,760,000 August 1942 $2,169,040,000 $ 16,696,728 2,885,500 $ $ 16,705,000 153,808,332 37.86 $ $ 58,233,788 $ $ $ 21 282,000 9,217,950 72,904,000 438,441 18.81 38,100,000 7,400,000 17,542,060.000 20,940,644,000 15,073,000 47,705,000 September 1941 Month Year $1,824,608,000 -j- 4 +24 +18 +13 $ 17,514,254 2,719,700 — 4 + 2 $ — 4 4- 4 $ 18,240,000 241,941,684 +76 +12 29.14 0 +30 $ +75 +45 $ 70,494,394 $ $ $ 25 367,000 13,876,928 77,738,000 408,472 16.99 37,000,000 4,900,000 15,907,834,000 18,760,571,160 15,367,000 47,505,000 —19 +12 — 2 + 8 + 5 — 1 —32 —14 —35 + 2 +12 +10 + + + + + 4 +59 +14 +16 — 1 + 3 1 5 4 4 0 + 2 MONTHLY REVIEW 3 EMPLOYMENT BANKING STATISTICS RESERVE BANK STATEMENT ITEMS Fifth District 000 omitted ITEMS Oct. 15 Sept. 15 1942 1942 10 $ 250 Discounts held .......................... $ 110 220 Foreign loans on gold................. 777 805 Industrial advances .................. 227,984 259,307 Government securities ............. 260,314 229,149 Total earning assets............. 617,824 686,888 Circulation of Fed. Res. notes. 520,251 500,393 Members’ reserve deposits......... 946,569 952,031 Cash reserves ........................... 80.06 77.07 Reserve ratio ............................. Oct. 15 1941 $ 0 0 793 134,996 135,789 390,164 483,451 809,474 85.11 SELECTED ITEMS—41 REPORTING MEMBER BANKS Fifth District 000 omitted Oct. 15 Oct. 14 Sept. 16 ITEMS 1941 1942 1942 $148,979 $141,938 $161,296 Loans to business & agriculture. 151,744 172,429 149,559 All other loans........................... 518,040 712,73'7 832,036 Investments in securities............. 313,225 325,689 308,660 Reserve bal. with F. R. bank. ... 26,593 30,322 33,720 Cash in vaults............................... 942,004 778,491 970,379 Demand deposits .......................... 206,463 211,656 208,408 Time deposits ............................. 0 0 0 Money borrowed .......................... Total deposits MUTUAL SAVINGS BANK DEPOSITS 9 Baltimore Banks Sept. 30, 1942 Aug. 31, 1942 ................ $225,881,379 $223,807,378 DEBITS TO INDIVIDUAL ACCOUNTS Fifth District 000 omitted Aug. Sept. Sept. 1941 1942 1942 CITIES Dist. of Col. $ 359,671 $ 389,797 $ 406,390 V/ashington , .. Maryland 491,249 611,727 648,051 Baltimore ......... 9,839 10,643 10,357 Cumberland . . . . 9,376* 10,090* Frederick........... 12,164 13,264 14,756 Hagerstown . . . . North Carolina 18,477 18,753 20,751 Asheville ........... 141,707 132,716 94,055 Charlotte ......... 86,956 66,612 89,360 Durham ........... 31,035 24,585 25,906 Greensboro ....... 7,594* 24,355* Kinston ............. 5*2*942 42,008 41,917 Raleigh ............. 30,633 21,280 32,869 Wilmington . . . . 11,317* 37,790* Wilson ............... 64,334 51,432 *5*9*,3i3 Winston-Salem . South Carolina 35,511 33,458 28,110 Charleston ....... 51,412 38,835 54,220 Columbia ........... 30,003 21,877 34,628 Greenville ......... 19,074 16,460 19,681 Spartanburg . . . Virginia 11,699* 9,773* Charlottesville .. 14,157 17,026 24,358 Danville ........... 18,404 18,706 16,910 Lynchburg ....... 19,526 18,618 13,492 Newport News.. 105,376 100,883 73,899 Norfolk ............. 10,799 10,885 6,647 Portsmouth....... 260,346 301,771 236,403 Richmond ......... Roanoke ........... 32,665 30,863 34,601 West Virginia 18,203* 18,836* Bluefield ........... 66,592 68,549 *63,892 Charleston......... Clarksburg ........ 12,770* 12,064* 24,600 28,774 21,594 Huntington ....... Parkersburg . . . . 13,429 12,931 12,654 $2,263,480 $2,169,040 $1,824,608 District Totals. . * Figures not included in District Total. Sept. 30, 1941 $224,490,776 % of Change Month Year 4 + 13 + 6 + 5 + 8 + 11 + 32 — 3 12 7 3 26 221 0 7 234 25 +11 + 51 + 34 + 20 + + + + + + + + + +2i —2i + 54 + ’8 + 6 + 5 + 58 + 3 + + + + + 20 + 72 + 11 + 5 + 4 1 + 16 + 6 + 43 + 2 + 45 + 43 + 62 + 28 — 6 — — + *4 3 3 6 15 4 + + 4 + 26 40 15 20 + ii + 6 + 24 COMMERCIAL FAILURES Figures on insolvencies in the Fifth District and the United States, as compiled by Dun & Bradstreet fo r several recent periods, are as follows: PERIODS September 1942............. August 1942............. September 1941............. 9 Months, 1942............. 9 Months, 1941............. Number of Failures Total Liabilities District U. S. District u. S. 17 556 $ 315,000 $ 5,473,000 21 698 282,000 6,781,000 735 367,000 9,393,000 240 7,641 3,552,000 81,387,000 9,299 3,475,000 106,105,000 With a few exceptions, the demand for and supply of labor in the Fifth Reserve District appears to be approxi mately balanced. In certain areas where a very large volume of defense work is under way there are shortages of both skilled and unskilled workers, and it is difficult to bring additional workers into these areas because of insufficient housing. Farm labor is also scarce, and it is quite probable that some crops will not be gathered as com pletely as would be the case if more workers were avail able. Retail distributors, whose wage and salary scales are comparatively low, are losing a great many of their employees to industries in which pay is much better. These employees are being replaced to a large extent by older workers and people who have not been employed in the past. The following figures, compiled for the most part by the Bureau of Labor Statistics, show the trends of employment and payrolls in Fifth District industries from August to September: STATES Maryland ............... Dist. of Col........... Virginia ................ West Virginia North Carolina . . . South Carolina . . . District Average Percentage change from August 1942 to September 1942 number In amount lpayroll of payroll + 2.3 + 4.3 + 0.7 + 2.3 + 1.4 + 9.8 —0.9 — 1.6 — 0.3 + 2.2 + 0.3 + 1.9 + 0.7 + 3<2 BITUMINOUS COAL MINING Production of bituminous coal in the United States rose in September 1942 and averaged 1,950,000 net tons per working day. Total production in the month amounted to 48,760,0(X) tons, in comparison with 47,705,000 tons in August this year and 47,505,000 tons in September last year. Total production this calendar year to October 10 of 445,547,000 tons exceeded output of 385,708,000 tons in the corresponding period last year by 15.5 per cent. Bituminous coal is in great demand from industry and transportation this year, and in addition the perspective shortage of fuel oil has sharply increased the amount of coal needed for heating purposes. In the Fifth District production of coal in September 1942, August 1942 and September 1941, was as follows: SOFT COAL PRODUCTION IN TONS REGIONS Sept. 1942 Aug. 1942 West Virginia .................... 13,319,000 13,320,000 Virginia ............................... 1,681,000 1,595,000 Maryland ............................. 145,000 158,000 5th District ...................... 15,145,000 15,073,000 48,760,000 47,705,000 United States .................. % in District.................. 31 32 Sept. 1941 13,487,000 1,712,000 168,000 15,367,000 47,505,000 32 CONSTRUCTION Building permits issued in twenty-nine Fifth District cities in September totaled $8,989,501, but Baltimore ac counted for more than half of this amount. With severe restrictions placed on non-essential construction, building permits have naturally declined sharply throughout the entire district. Most of the construction for war purposes is outside Corporation lines, and therefore is not reflected in permit figures. Permits issued in August 1942 totaled $9,217,950, and the September 1941 total was $13,876,928. Among the individual cities, Baltimore led in September permits with $4,671,260, Washington was second with $2,831,885, Norfolk was third with $330,185, Richmond was fourth with $315,700, and Durham was fifth with $248,920. Total permits issued in the twenty-nine cities MONTHLY REVIEW 4 this calendar year through September amounted to $70,504,992, compared with $111,761,553 for the first nine months of 1941. Contracts actually awarded for construction work in the Fifth District in September 1942 totaled $78,946,000, most of which was for work connected with the war pro gram. Last month’s total was larger than $72,904,000 in contracts awarded in August of this year and also above the total of $77,738,000 awarded in September 1941. Figures on contract awards by states for August 1942, which were not available when the September 30 Review went to press, were reported by the F. W . Dodge Corpor ation as follows: CONSTRUCTION CONTRACTS AWARDED STATES Aug. 1942 Aug. 1941 % Change Maryland ............................. $ 8,550,000 $ 20,034,000 — 57 7,738,000 10,209,000 — 24 Dist. of Columbia............... Virginia ............................... 6,580,000 44,615,000 — 85 West Virginia .................... 6,476,000 7,212,000 — 10 North Carolina ................. 26,341,000 47,585,000 — 45 South Carolina .................... ........... 17,219,000_______16,438,000______ + 5 Fifth District ................. $72,904,000 $146,093,000 — 50 COTTON TEXTILES Cotton textile mills in the Fifth District continued op erations during September at capacity levels, and total spindle hours amounted to 5,974,199,967, approximately 53 per cent of total spindle hours in the United States. The United States average hours of operation per spindle in place was 468, but South Carolina averaged 526 hours per spindle, North Carolina averaged 484, and Virginia averaged 474, all above the national average. As has been the case for many months, most of the mills are working on war orders, and it is becoming increasingly difficult to obtain textiles for civilian use except from mills which have been unable to convert their machinery to the produc tion of the types of goods needed by the armed forces. COTTON CONSUMPTION—FIFTH DISTRICT In bales MONTHS No. Carolina So. Carolina Virginia District September 1942................. 243,817 192,449 22,229 458,495 August 1942................ 232,531 183,057 22,853 438,441 September 1941................. 224,451 164,229 19,792 408,472 9 Months, 1942................ 2,183,548 1,685,091 200,014 4,068,653 9 Months, 1941................ 1,942,935 1,464,180 166,054 3,573,169 % Inc. in 1942................ +12 +15 +20 +14 RAYON YARN PRODUCTION Rayon Organon reports that deliveries of rayon filament yarn to domestic consumers in September totaled 38,300,000 pounds, compared with 38,100,000 pounds delivered in August 1942 and 37,000,000 pounds in September 1941. Total deliveries since January 1 amounted to 347,700,000 pounds this year, an increase of 4 per cent over 332,900,000 pounds delivered in the first nine months of 1941. Pro duction of filament yarn exceeded deliveries in September, and reserve stocks held by producers rose from 7,400,000 pounds at the end of August to 7,800,000 pounds at the end of September. On September 30, 1941 reserve stocks of filament yarn totaled 4,900,000 pounds. The increase of yarn in reserve stocks this year is due to the impound ing of a certain percentage of output for assignment to mills which have used silk in the past. Rayon staple fiber delivered in September totaled 12,400,000 pounds, compared with 12,800,000 pounds de livered in August and 13,000,000 pounds in September 1941. Total deliveries of staple fiber for the first nine months of 1942 amounted to 113,600,000 pounds, an in crease of 11 per cent over 102,100,000 pounds delivered in the like period last year. Rayon staple fiber is increasing in importance in the United States, because it mixes better with other fibers than does rayon filament yarn. COTTON STATISTICS Spot cotton prices on ten Southern markets moved through a narrow range between the middle of September and the middle of October. From an average price of 18.74 cents on September 18, the average price for middl ing grade, upland cotton declined to 18.68 cents per pound on October 2, but then turned upward and rose to 18.95 cents on October 16, the latest date for which official figures are available. The third forecast of 1942 cotton production, issued on October 8 by the Department of Agriculture, lowered the estimate from 14,028,000 bales at the first of September to 13,818,000 bales on the first of October, but the per spective yield is still much higher than 10,744,000 bales raised in 1941. In the Fifth Reserve District, South Carolina’s perspective yield was reduced from 858,000 bales last month to 757,000 bales, Virginia’s yield was un changed at 35,000 bales, while North Carolina’s prospects rose from 736,000 to 750,000 bales. Production figures in Fifth district states in comparison with last year and the ten-year average are on Page 5. COTTON CONSUMPTION AND ON HAND—BALES Sept. Sept. Aug. 1 to Sept. 30 1942 1941 This Year Last Year Fifth district states: Cotton consumed ............... 458,495 408,472 >,936 802,108 Cotton growing states: Cotton consumed ............... 836,487 747,054 1,639,533 1,488,162 Cotton on hand Sept. 30 in Consuming establishments 1,411,449 1,284,679 Storage & compresses ......... 9,414,423 11,131,296 United States : Cotton consumed ................. 966,149 877,971 1,891,238 1,750,006 Cotton on hand Sept. 30 in Consuming establishments .. 1,812,204 1,635,413 Storage & compresses......... 9,724,038 11,526,209 Spindles active ............................ 22,956,224 22,977,528 AUCTION TOBACCO MARKETING Flue-cured tobacco markets in Virginia opened on Sep tember 21, approximately a week later than the opening date in 1941. Additional markets also' opened in North Carolina in September, and South Carolina markets and eastern North Carolina markets, which had opened in August, continued sales through September. Prices paid for tobacco in September continued far above 1941 prices, and the tobacco sold in September brought in $102,150,130 in comparison with receipts in September 1941 totaling $70,494,394. Sales in September, all of flue-cured type tobacco, were as follows in the Fifth District: STATES South Carolina . , North Carolina . . Virginia ............. District Total . Season through Producers’ Tobacco Sales, Lbs. Price per September 1942 September 1941 1942 27,054,905 18,740,881 $35.29 227,023,948 203,710,725 37.85 16,572,148 19,490,078 40.23 270,651,001 241,941,684 $37.74 425,049,453 355,368,083 $37.79 Cwt. 1941 $23.09 29.36 32.62 $29.14 $28.34 TOBACCO MANUFACTURING Cigarette production continues to set new records, and in September the number manufactured reached a new high for the fourth successive month. The output of cigars in September also exceeded production in Septem ber 1941, but the amount of snuff and chewing and smok ing tobacco manufactured declined last month from the MONTHLY REVIEW corresponding month of the preceding year. Production fifures released by the Bureau of Internal Revenue on October 2 are as follows: Smoking & chewing tobacco, pounds ............. Cigarettes, num ber................ Cigars, number .................... Snuff, pounds ........................ Sept. 1942 Aug. 1942 24,238,452 22,564,144 21,798,447,820 20,940,644,080 519,975,860 498,872,075 3,090,569 2,764,890 Sept. 1941 26,561,950 18,760,571,160 506,070,675 3,194,316 RETAIL AND WHOLESALE TRADE DEPARTMENT STORE TRADE Richmond Baltimore Washington Other Cities District Change in September 1942 sales in comparison with sales in September 1941 + 17 +15 + 9 + 8 +13 Change in Jan.-Sept. 1942 sales in comparison with sales in Jan.-Sept. 1941 + 14 +19 +22 +14 +18 Change in stocks on Sept. 30, 1942 compared to stocks on Sept. 30, 1941 + 31 +26 +38 +16 +31 Change in outstanding orders on Sept. 30, 1942 compared with Sept. 30, 1941 + 7 — 6 -1 5 — 7 -9 Change in total receivables on Sept. 30, 1942 compared with Sept. 30, 1941 —26 —35 —29 —33 —31 Percentage of current receivables as of Sept. 1, 1942, collected in Sept. 44 (30) <52 (34) 48 (38) 46 (34) 49 (35) Percentage of instalment receivables as of Sept. 1, 1942, collected in Sept. 26 (14) 29 (21) 21 (16) 22 (14) 23 (17) Note: 1941 percentages in parentheses. State figures on sales, September 1942 compared with September 1941, and total sales in 9 months this year compared with total sales in the like 1941 period, show the following percentage changes : Maryland -\-\6 & + 1 9 ; Virginia + 1 9 & + 1 6 ; West Virginia + 1 & 0 ; North Carolina + 4 & + 3 ; South Carolina + 2 8 & + 2 3 . RETAIL FURNITURE SALES Percentage Changes in September 1942 Sales STATES Compared with Compared with Sept. 1941 A u g. 1942 -1 3 — 1 Maryland (12)* ........................... — 2 Dist. of Col. (7)* ........................ + 1 — 3 + 8 Virginia (34)* .............................. — 10 — 15 West Virginia (14)* .................... North Carolina (27)* ................. + 3 + 11 + 31 + 4 South Carolina (20)* .................. — 4 + 2 District (114)* .......................... Individual Cities — 13 — 1 Baltimore (12)* ............................. — 2 Washington (7)* .......................... + 1 — 1 + 13 Lynchburg, Va. (3)* .................. —22 Norfolk, Va. (3)* ........................ + 14 — 5 Richmond, Va. (7)* ...................... + 11 — 12 — 10 Charleston, W. Va. (5)* ............. — 1 — 8 Huntington, W. Va. (3)* ............. Charlotte, N. C. (5)* .................. + 7 + 8 + 18 Winston-Salem, N. C. (3)* ......... + 5 + 17 Columbia, S. C. (5)* .................... + 6 — 5 — 31 Greenville, S. C. (3)* ................ + 123 + 65 Greenwood, S. C. (3)* ................ CROP FORECASTS The following figures, issued by the Department of Agriculture, show forecasts of production in 1942 based on October 1 conditions, compared with final yields in 1941 and in the 10-year period 1930-39, and percentage changes in acreage this year over or under 1941 acreage. Yield figures for 1942 marked ( + ) were raised between September 1 and October 1, and those marked (— ) were lowered. Cotton Yo Change Virgin ia ............................ North Carolina . . . South Carolina . . . . District Total . . North Carolina South Carolina . District Total N et Sales September 1942 compared with Au g. Sept. 1941 1942 — 12 0 + 6 + 6 + 12 + 12 +10 + 10 — 45 — 12 + 0 + 12 0 — 11 — 1 — 18 -2 0 + 6 + 32 + 7 — 8 + 7 — 4 District Average (214) Source: Departm ent of Commerce. + + + — — — 2 5 6 4 3 1 — 1 5 3 5 10 5 + + + + + Yield 1930-39 Yield 1941 31,000 626,000 820,000 1,477,000 28,000 552,000 406,000 986,000 Yield 1942 35,000 750,000 + 775,000 — 1,560,000 - (Bushels) 16,173,000 32,418,000 12,610,000 43,507,000 22,831,000 127,539,000 Hay Maryland ............ Virginia .............. W est Virginia . . North Carolina . South Carolina D istrict Total (Bales) 15,164,000 32,942,000 12,307,000 52,096,000 22,316,000 134,825,000 17,290,000 36,575,000 + 13,893,000 + 45,460,000 23,244,000 136,462,000 + (Tons) 467,000 924,000 642,000 744,000 398,000 3,175,000 472,000 1,250,000 793,000 1,071,000 470,000 4,056,000 560,000 + 1,533,000 4875,000 ' 1,244,000 + 510,000 — 4,722,000 + Irish Potatoes (Bushels) M a r y la n d .............. Virginia .............. W est Virginia . . North Carolina South Carolina . District Total 2.997.000 10,661,000 2.844.000 8.182.000 2,475,000 27,159,000 + -f + 1.920.000 6.916.000 3.795.000 6.636.000 2.548.000 21,815,000 , , - 2 100 000 7.665.000 3.960.000 9.213.000 + 3.108.000 26,046,003 + Sweet Potatoes (Bushels) Maryland ............ Virginia .............. North Carolina . South Carolina . District Total + 13 3 __ 10 + 13 1 — 1,071,000 4,061,000 8,354,000 5,401,000 18,887,000 1,040,000 2,970,000 6,880,000 4,400,000 15,290,000 1,620,000 + 4.160.000 — 8.280.000 + 5,890,000 19,950,000 + 30,225,000 88,572,000 2,610,000 459,490,000 69,660,000 650,557,000 31.125.000 — 99.596.000 + 3,135,000 573.930.000 + 96.750.000 + 804.536.000 + 169.510.000 265.640.000 8,670,000 443.820.000 216,000,000 + 418.500.000 + 49,000,000 683.500.000 + Tobacco (Pounds) Maryland ......... Virginia ............. W est Virgin ia North Carolina South Carolina . + + + + + + Virginia + 19 + 35 + 312 + 42 3 10 14 11 11 10 26,901,000 99,861,000 2,985,000 529,356,000 85,656,000 744,759,000 Peanuts (Pounds) ............. North Carolina South Carolina . District Total 146.390.000 246.869.000 8,962,000 402.221.000 Peaches (Bushels) W H O L E S A L E T R A D E , 214 F IR M S Auto supplies (12) . . . . Shoes (3) ............................ Drugs & sundries ( 9 ) . . Dry goods (6) ................ Electrical goods ( 1 0 ) . . . Groceries (67) ................ H ardw are (13) .............. Industrial supplies ( 8 ) . . Paper & products ( 1 1 ) . . Tobacco & products (6) Miscellaneous (69) ------ Acreage + 22 +' 6 + 1 + 3 C om Maryland Virginia . * Number of reporting stores. L IN E S 5 + 4 Stocks Ratio Sept. Sept. 30, 1942 collections to accounts compared with Sept. 30 .A ug. 31 outstanding Sept. 1 1941 1942 — 19 — 12 96 + 19 — 27 — 6 — 31 — 17 + 27 — 9 — 5 — 3 *6 53 56 25 73 84 84 — 2 - ’9 83 -1 0 — 7 80 — is — 7 + 5 M aryland ........... Virginia .............. W est Virgin ia . . North Carolina ., South Carolina . D istrict Total 372.000 899.000 285.000 1.938.000 1.424.000 4,918,000 563.000 1,860,000 590.000 3.167.000 4.095.000 10,275,000- 476.000 — 1.840.000 570.000 — 2.463.000 3.500.000 8,849,000— Apples, Commercial (Bushels) Maryland ............ Virginia ................ W est Virgin ia . . North Carolina D istrict Total 1.911.000 11.085.000 4.317.000 1.009.000 18.322.000 1.905.000 11,800,000 4.288.000 1.505.000 19,498,000 2,101,000 + 13.908.000 — 4.818.000 1.145.000 — 21.972.000 — Pastures, October 1 Condition M aryland ......... V i r g i n i a .............. W est Virgin ia . North Carolina South Carolina (Compiled October 21, 1942) 70 71 67 75 63 8996 — 9487 — 75 — MONTHLY REVIEW 6 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) INDUSTRIAL Industrial activity expanded further in September and the first half of October. Prices of uncontrolled commodities continued to advance in Sep tember. Early in October an Office of Economic Stabilization was established with a view to more effective control of prices and wages affecting the cost of living. PRODUCTION PRODUCTION Federal Reesrve monthly index of physical vol ume of production, adjusted for seasonal variation, 1935-39 average = 100. Latest figures shown are for September 1942. FREIGHT-CAR LOADINGS Industrial production increased more than seasonally in September and the Board’s adjusted index rose 2 points to 185 per cent of the 1935-1939 average. Armament production continued to advance. Steel production was maintained at a high level during September and then increased during October, reaching 101 per cent of rated capacity in the third week of the month. Cotton consumption continued at a high rate and output of manufactured food pro ducts rose more than seasonally owing chiefly to increased activity in the meat packing and canning industries. Coal production, which had been maintained in large volume during the summer months, did not show the usual sharp sea sonal rise in September and the first half of October. Output of crude petroleum showed little change following a considerable increase in August. Value of construction contracts awarded in September was about the same as in August, according to reports of the F. W. Dodge Corporation. As in other recent months, awards were mainly for publicly-financed work which, in Sep tember, amounted to over 90 per cent of the total. Contracts for manufacturing buildings reached the highest total yet re ported, and increased awards for defense housing raised the total for residential building by about one-fourth despite a decline in privately-financed work. Awards for public works and utilities and for commercial buildings dropped substantially. DISTRIBUTION ings of revenue freight, adjusted for seasonal variation, 1935-39 average = 100. Supgroups shown are expressed in terms of points in the total index. Latest figures shown are for Sep tember 1942. COST OF LIVING Department store sales, which had been unusually large in August, showed somewhat less than the usual sharp seasonal rise during September. In the first half of October sales were sustained near the high level prevailing at the be ginning of the month. Variety store sales increased seasonally from August to September, while sales in small towns and rural areas rose by more than the usual seasonal amount. Railroad freight-car loadings increased further in September and the first half of October. The rise was small for this time of year, however, owing main ly to the fact that shipments of many commodities, particularly coal, had been maintained at unusually high levels during the summer months. COMMODITY PRICES Prices of uncontrolled commodities advanced further in September. Dur ing the first half of October, after passage of an amendment to the price Con trol Act of 1942, more widespread controls were announced. Maximum prices at the highest levels reached around the end of September were established for butter, cheese, eggs, and various other foods. These items constitute nearly onethird of the food budget and now the proportion of the total under control is about 90 per cent. Another action directed residential rents throughout the country to be limited to the levels of March 1, 1942, wherever rent control procedures were not already in effect. AGRICULTURE The October 1 official crop report confirmed earlier prospects that un usually heavy crop yields were in sight. The Department of Agriculture pointed out, however, that, as the harvest progresses under difficulties, particularly as to labor supply, farmers are showing less assurance that it can be completed in season. Record crops of grain, hay, oilseeds, sugar, vegetables, and probably fruits are still likely. r / CLOTHING RENT s y 1 r "r 1 1936 1937 1938 1939 r i 1940 BANK CREDIT 1941 1942 Bureau of Labor Statistics’ indexes, 1935-39 average = 100. Fifteenth of month figures. Last month in each calendar quarter through Septem ber 1940, monthly thereafter. Latest figures shown are for September 1942. MEMBER BANK RESERVES fu . TOTAL ^ rS ....A \ REQUJRED RESERVES „ -- '***' - \ f \ f -XCESS RESERVES ----- S 4 I I Wednesday figures. Required and excess re serves, but not the total, are partly estimated. Latest figures shown are for October 14, 1942. Following a temporary peak of 3 billion dollars in mid-September, excess reserves o f member banks declined to 1.7 billion dollars in the latter half of September but increased considerably in the first three weeks of October. This increase resulted in part from the action of the Board of Governors of the Federal Reserve System in reducing reserve requirements on demand deposits at central reserve city banks from 22 to 20 per cent, which added about 400 million dollars to excess reserves. In addition member bank reserves were in creased through purchases of Government securities by the Federal Reserve Banks. As a result of these developments excess reserves of all member banks on October 21 amounted to 2.4 billion dollars, of wrhich about 500 million dol lars were in New York City. At reporting banks in leading cities heavy purchases of new Treasury cer tificates of indebtedness and Treasury notes were reflected in an increase of 1.6 billion dollars in Government security holdings during the four weeks ending October 14. Further large increases occurred in the following week as banks received their allotments of the new iy 2 per cent notes and 2 per cent bonds. Commercial loans, after declining in August and September, increased in the first two weeks of October, mainly in New York City, while other loans declined further. UNITED STATES GOVERNMENT SECURITY PRICES Prices of United States Government securities continued steady last month. Long-term taxable bonds are yielding 2.33 per cent on the average and long term partially tax-exempt bonds are yielding 2.05 per cent.
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