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MONTHLY

REVIEW

o f Financial and Business Conditions

Fifth
Federal

Re s e r v e
District

Federal Reserve Bank, Richmond, Va.

September 30, 1941

Summary of August Business Conditions
L T H O U G H the expansion in business caused by the
preparedness program had gotten well under way in
August last year, all indicators show a continuation during
August 1941 o f greatly increased activity over the corre­
sponding month last year. In banking, circulation o f
Federal Reserve notes o f the Richmond bank rose from
$242,825,000 on September 15, 1940, to $360,870,000 on
September 15, 1941, member bank reserve deposits ad­
vanced from $323,639,000 to $458,036,000, and the R e­
serve bank’s cash reserves rose from $520,860,000 to
$767,512,000. On September 15, 1941, total resources
o f the Federal Reserve Bank o f Richmond stood at $1,010,323,000, reaching the billion dollar mark for the
first time. Forty-one regularly reporting member banks
showed a rise in loans to business and agriculture from
$125,800,000 on September 11, 1940, to $155,587,000 on
September 10, 1941, and other loans rose from $155,166.000 to $170,596,000 between the same dates. Demand
deposits in the 41 banks rose from $590,725,000 to $726,655.000 between mid-September last year and this. Debits
to individual accounts, reflecting checks passing through
the banks in 25 Fifth district cities, were 33 per cent
higher in August than a year earlier.
Distribution o f goods to consumers continued at record
levels during recent weeks. Sales last month in 79 de­
partment and general merchandise stores were 34 per

A

cent above August 1940 sales, and retail furniture stores
reported an average increase o f 42 per cent. Wholesale
trade in 195 firms in many lines gained 36 per cent in
August in comparison with August 1940 sales, and new
automobile registrations in the Fifth district last month
were at or near recent record levels.
Industrial activity in August showed no recession, but
on the contrary probably expanded further in such lines
as shipbuilding and aircraft construction. Cotton textile
mills, rayon yarn mills, and coal mines continued to work
at capacity, and construction work provided for in per­
mits issued and contracts awarded was above the high
level o f August last year. Tobacco manufacturing was
in substantially larger volume in August 1941 than in
August 1940.
Auction tobacco markets opened in the Carolinas and
part o f Virginia in August and the first half o f Septem­
ber, and opening prices were about 45 per cent above
opening prices last year. Cotton prices also rose last
month, and were about 70 per cent above 1940 prices.
The 1941 tobacco crop in the Fifth district is estimated
to be 13 per cent less than the 1940 crop, and cotton yield
is 45 per cent lower than last year. Corn, hay, Irish po­
tatoes and peanuts also showed reduced yields this year,
while wheat, oats, sweet potatoes, apples and peaches
increased over 1940 yields.

BUSINESS STATISTICS— FIFTH FEDERAL RESERVE DISTRICT

August 1941

July 1941

August 1940

% Change
Month
Year

Debits to individual accounts (25 cities).....
Sales, 79 department stores, 5th district.........
Sales, 41 furniture stores, 5th district............
Sales, 195 wholesale firms, 5th district...........
Registrations, new autos, 5th district............

$1,738,193,000
$ 15,699,692
2,204,783
$
$ 16,331,000
21,412

$1,779,790,000
$ 12,339,671
1,519,543
$
$ 14,720,000
33,740

$1,307,118,000
$ 11,754,625
1,548,889
$
$ 11,983,000
17,242

—
+
+
+
—

Tobacco sold in 5th district (P ou nds)...........
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, 29 cities.................

113,426,399
26.66
30,243,063
32
377,000
$
$ 12,511,101
$ 145,492,000
393,671
16.54
10.75*
37,300,000
4,100,000
45,650,000

Value of contracts awarded, 5th district.......
Cotton consumption, 5th district (B ales).....
Cotton price, cents per lb., end of month.......
Print cloths, 39 in., 80x80s, end of month.......
Rayon yarn shipments, U. S. (P ou nds)...........
Rayon yarn stocks, U. S. (Pounds)................
Bituminous coal mined, U. S. (T on s).............
* Ceiling price established by OPACS.




$
$

$
$
$

16
198,000
11,584,377
64,333,000
418,620
15.94
10.75*
39,400,000
3,600,000
43,300,000

$
$
$
$
$

2
27
45
11
37

+
+
+
+
+

33
34
42
36
24

52,687,557
18.36
9,671,969
42
713,000
9,885,738

+100
+ 90
+ 8

+115
+ 45
+213
— 24
— 47
+ 27

47,363,000
298,696
9.62
6.50
34,000,000
9,900,000
39,010,000

+126
— 6
+ 4
0
— 5
+ 14
+ 5

+207
+ 32
+ 72
+ 65
+ io
— 59
+ 17

MONTHLY REVIEW

2
BA N K IN G STATISTICS

E M PLO Y M E N T

RESERVE BAN K STATEMENT ITEMS
Fifth District
000 omitted
Aug. 15
ITEMS
Sept. 15
1941
1941
$
38
Discounts held ..............................................
$
175
Foreign loans on gold ................................
9
0
Industrial advances ....................................
811
788
Government securities ..............................
119,663
119,663
Total earning assets ..............................
120,521
120,626
Circulation of Fed. Res. notes .............
360,870
334,910
Members’ reserve deposits .....................
458,036
417,214
Cash reserves ..............................................
767,512
718,165
Reserve ratio ................................................
85.78
85.18

Sept. 15
1940
$
250
13
849
121,994
123,106
242,825
323,639
520,860
81.51

SELECTED ITEMS— 41 REPORTING MEMBER BANKS
Fifth District
000 omitted
ITEMS
Sept. 10
Aug. 13
Sept. 11
1941
1941
1940
Loans to business & agriculture ...........
$155,587
$149,700
$125,800
All other loans ............................................
170,596
168,808
155,166
Investments in securities .........................
505,380
475,612
>135,123
Reserve bal. with F. R. b a n k .................
303,481
290,896
213,120
Cash in vaults ..............................................
28,845
27,467
24,374
Demand deposits ..........................................
726,655
722,107
590,725
Time deposits ..............................................
210,660
209,543
202,935
Money borrowed ..........................................
0
0
0

M UTUAL SAVINGS BANK DEPOSITS
9 Baltimore Banks
Total deposits

Aug. 31, 1941
$223,974,988

...........

July 31, 1941
$223,993,945

000 omitted
July
Aug.
1941
1940

CITIES
Dist. of Col.
Washington

% of Change
Month Year

$ 347,499

$ 351,981

$ 268,453

— 1

+ 29

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

499,706
10,351
11,833

536,045
11,348
12,238

365,968
9,042
9,092

— 7
— 9
— 3

+ 37
+ 14
+ 30

North Carolina
Asheville ...............
C h arlotte...............
Durham .................
Greensboro ...........
Raleigh .................
W ilmington .........
Winston-Salem . .

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

17,926
90,057
33,625
24,327
61,704
19,198
48,765

14,752
60,299
38,815
19,448
37,033
11,561
41,891

+ 1
— 0
+ 60
+ 8
— 20
+ o
+ 1

+
+
+
+
+
+
+

22
49
38
35
34
66
17

South Carolina
Charleston ...........
Columbia .............
Greenville .............
Spartanburg

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

29,721
38,303
27,082
15,470

19,112
28,420
18,935
11,114

—
—
+
+

6
5
2
o

+
+
+
+

47
28
45
40

Virginia
Danville ...............
Lynchburg
.........
Newport News . .
Norfolk .................
Portsmouth .........
Richmond
...........
Roanoke ...............

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

10,088
18,405
14,827
78,287
7,039
196,369
34,243

7,311
13,065
13,931
50,357
5,839
155,626
28,729

—
—
—
—
—
+
+

3
9
4
4
1
3
2

+
+
+
+
+
+
+

34
28
2
49
19
30
22

West Virginia
Charleston ...........
Huntington .........
Parkersburg ----District Totals. . .

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

67,059
21,959
13,724
$1,779,790

50,415
17,684
10,226
$1,307,118

—
—
—
—

9
3
9
2

+
+
+
+

21
21
22
33

C O M M E R C IA L FAILU RES
Number of Failures
District U. S.

PERIODS
August
July
August
8 months,
8 months,

1941..........
1941...........
1940..........
1941...........
1940........... , , ,.

Source: Dun & Bradstreet




32
16
42
282
387

954
908
1,128
8,564
9,422

Total Liabilities
District
U. S.
$ 377,000
198,000
713,000
3,108,000
4,885,000

$ 11,134,000
13,422,000
12,977,000
96,712,000
112,691,000

Percentage change from
July 1941 to Aug. 1941
in amount
in number
of payroll
on payroll

STATES

+
+
+
+
+
+
+

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

Aug. 31, 1940
$222,488,398

DEBITS TO INDIVIDUAL ACCOUNTS
Fifth District
Aug.
1941

There were no substantial changes in employment in
the Fifth district in August and early September. Skilled
labor may be said to be practically fully employed, and
there is relatively little idleness in unskilled ranks. Many
workers in agricultural sections have gone into construc­
tion or industry, and farm labor for harvesting is hard
to obtain at wages farmers can afford to pay. Demands
for machinists and workers in allied lines continue to
exceed the supply o f available men. Although some un­
employment is expected to result from restrictions in the
manufacture o f civilian goods, none o f consequence has
yet been noted. The following figures, compiled for the
most part by the Bureau o f Labor Statistics, show the
trends o f employment and payrolls in the Fifth district
from July to A ugust:

3.3
0.4
2.0
2.0
1.3
0.5
1.8

+
—
+
+
+
+
+

1.5
0.5
2,4
5.6
1.4
2.1
2.6

A U TO M O B ILE R E G ISTRA TIO N S

Sales o f new passenger automobiles tapered off in
August in anticipation o f the introduction o f new models
in September, but in most o f the Fifth district continued
much above the level o f sales in the corresponding month
last year. Dealers cleaned out their stocks o f 1941
models in August and early September, and also reduced
the number of used cars on their lots. Used car stocks
are only sufficient to meet current needs, and with re­
strictions on production o f new cars in force there may
not be enough cars to meet the demand later in the fall
and winter. However, price advances and a considerable
volume o f forward buying done in recent months will
probably reduce the demand for both new and high grade
used cars during the 1942 model year.
The following registration figures for new passenger
cars were furnished by R. L. Polk & Co., of Detroit:
REGISTRATION OF N E W PASSENGER CARS—NUMBER
STATES
Maryland ...........
Dist. of Col. . . .
Virginia .............
West Virginia . .
No. Carolina . . .
So. Carolina . . .
District ...........

Aug.
1941
3,912
2,119
6,870
1,525
4,354
2,632
21,412

Aug.
1940
2,971
1,580
4,568
2,069
4,064
1,990
17,242

%
Change
+ 32
+ 34
+ 50
— 26
+
7
+ 32
+ 24

8 Months 8 Months
1941
1940
47,039
34,724
25,788
19,379
59,874
39,158
27,598
22,556
53,144
36,135
29,080
19,728
242,523
171,680

%
Change
+ 35
+ 33
+ 53
+ 22
+ 47
+47
+ 41

BU ILDIN G PERM ITS A N D CO N STR U C TIO N C O N TR A C TS

A continuation o f construction activity at a very high
level is indicated by building permits issued and contracts
awarded in the Fifth district in August. Permits issued
in 29 cities last month totaled $12,511,101, an increase o f
8 per cent over $11,584,377 in July this year and 27 per
cent above $9,885,738 in August last year. Washington
with permits totaling $4,891,990 (exclusive o f all Govern­
ment w ork) led last month, Baltimore was second with
$3,182,046, N orfolk third with $944,245, Richmond

3

MONTHLY REVIEW
fourth with $468,536, and Spartanburg fifth with $330,-

021.

The aggregate value o f August contract awards for
construction in the Fifth district was $145,492,000, set­
ting a new monthly record and exceeding $47,363,000 in
awards in August 1940 by 207 per cent. National fig­
ures for August 1941 showed an increase of 83 per cent
over award figures for August last year. Figures on
contract awards by states for July 1941, which were not
available when the August 31 R eview went to press,
were reported by the F. W . D odge Corporation as fol­
lows :
CONSTRUCTION CONTRACTS AW ARDED
STATES
Maryland ..............................
Dist. of Col.............................
Virginia ................................
West Virginia .....................
North Carolina ...................
South Carolina ...................
Fifth District ...............-

July 1941
$16,122,000
7,802,000
15,462,000
14,995,000
6,845,000
3,097,000
$64,333,000

July 1940 % Change
$ 7,951,000
+103
6,197,000
+ 26
31,728,000
— 51
1,575,000
+852
5,882,000
+ 16
3,901,000______ — 21
$57,234,000
+ 12

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

Bituminous coal mines in the United States produced
45,650,000 tons in August 1941, an increase o f 5 per
cent over 43,300,000 tons mined in July this year and
a rise of 17 per cent over 39,010,000 tons in August last
year. On a basis o f daily output, however, August fell
5 per cent below July, but was 22 per cent above August
1940. Total production this calendar year to September
1 o f 314,352,000 tons exceeded output o f 294,483,000
tons in the corresponding period last year by 7 per cent.
Shipments o f coal through Hampton Roads ports to
September 6 totaled 14,952,322 tons this year, a decline
from 15,621,320 tons to the same date last year. The
decline was chiefly due to lower figures on foreign cargo
and bunker loadings. In the Fifth district production of
coal in August 1941, July 1941 and August 1940, was as
fo llo w s:
SOFT COAL PRODUCTION IN TONS
REGIONS
West Virginia .......................
Virginia ....................................
Maryland ..................................
5th District .....................
United States .................
% in District ...............

Aug. 1941
13,294,000
1,748,000
156,000
15,198,000
45,650,000
33

July 1941
12,517,000
1,675,000
148,000
14,340,000
43,300,000
33

Aug. 1940
11,471,000
1,310,000
114,000
12,895,000
39,010,000
33

C O TTO N TEX TILES

Primary textile markets were relatively inactive in
August, mills hesitating to accept additional orders in
the face o f advancing costs of production and ceiling
prices for their products. In addition, practically all
mills are sold up months ahead. Wholesale markets for
finished cotton goods were quite active most of the month.
The price ceiling schedule on cotton gray goods was ex­
tended to cover combed lawns, dimities, voiles, and high
grade combed broadcloths, in addition to the previous list
o f print cloths, carded broadcloths, combed broadcloths,
narrow sheetings, osnaburgs and tobacco cloths. Mill
margins for 17 constructions of medium and coarse cloths
widened during August to 20.53 cents, compared with
19.06 cents for July and 11.23 cents for August 1940.




COTTON CONSUMPTION— FIFTH DISTRICT
In bales
MONTHS
No. Carolina So. Carolina Virginia
August
1941.....................
211,53(7
163,146
18,988
July
1941.....................
227,576
171,346
19,698
August
1940.....................
159,631
127,934
11,131
8 Months, 1941.....................
8 Months, 1940.....................

1,718,645
1,322,519

1,299,436
1,032,157

146,262
96,657

District
393,671
418,620
298,-696
3,164,343
2,451,333

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

Rayon filament yarn shipments to domestic consumers
totaled 37,300,000 pounds in August, according to Rayon
Organon, a decline from 39,400,000 pounds shipped in
July but an advance over 34,000,000 pounds in August
1940. Stocks o f yarn increased slightly last month, ris­
ing from 3,600,000 pounds on July 31 to 4,100,000 pounds
on August 31. On August 31, 1940, stocks o f yarn
totaled 9,900,000 pounds. On August 23, the O P A C S
issued mandatory ceiling prices for 52 constructions o f
rayon gray goods, effective August 25. The ceilings
fixed average prices about 10 per cent below recent mar­
ket quotations. N o ceilings were set for finished rayon
goods, but the O P A C S made it clear that price actions in
the finished goods markets will be observed closely. The
inventory o f rayon yarn held, by broad weavers at the
end o f August 1941 totaled 24,900,000 pounds, compared
with 28,300,000 pounds a month and 24,100,000 pounds
a year earlier.
C O TTO N STATISTICS

Spot cotton prices on 10 Southern markets rose $10 a
bale during the past month, advancing from an average
o f 15.74 cents per pound for middling 1 5/16 inch cotton
on August 15 to 17.74 cents on September 12, the latest
date for which an official average is available. The rise
was stimulated by a scarcity of free cotton outside loan
stocks, a small volume o f hedge selling, and lateness o f
the new crop. On September 13, 1940, the average base
price on the 10 Southern markets was 9.42 cents.
The second forecast o f the 1941 cotton crop, issued on
September 8 by the Department o f Agriculture, lowered
the estimate from 10,817,000 equivalent 500-pound bales
as o f August 1 to 10,710,000 bales on September 1, a
decrease o f 107,000 bales, or 1 per cent. In the Fifth
district, prospective yields increased 19,000 bales in North
Carolina and 1,000 bales in Virginia, but decreased 17,000
bales in South Carolina. Production figures in Fifth
district states are on page 4.
COTTON CONSUMPTION AND ON HAND— BALES
Aug. 1941
Fifth district states:
Cotton consumed

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

Aug. 1940

393,671

298,696

Cotton growing states:
Cotton consumed .........................
Cotton on hand August 31 in
Consuming establishments.
Storage & compresses.........

740,270

561,1314

1,322,995
8,901,770

538,869
9,020,372

United States:
Cotton consumed .........................
Cotton on hand August 31 in
Consuming establishments.
Storage & compresses ___

874,113

650,888

1,697,056
9,296,898

738,051
9,131,474

34,967
23,029,066

65,425
22,084,474

Exports of cotton .............................
Spindles active in month.................

MONTHLY REVIEW
A U C T IO N TO B A C C O M ARK ETIN G

CROP FORECASTS

Auction tobacco markets opened in the Border belt on
August 12, and 14 markets in the North Carolina New
Bright belt opened on August 26. Prices in August were
much higher than prices a year ago, and sales were larger,
the latter increase being due to earlier openings of mar­
kets this year. The 1941 tobacco crop in the Fifth dis­
trict is estimated to be 12.5 per cent below the 1940 crop,
but if the August price proves indicative o f the seasonal
average, receipts from this year’s crop should be larger
than 1940 receipts. Sales in August, all o f flue-cured
type tobacco, were as fo llo w s :
Priducers’ Tobacco Sales, Lbs.
August 1940
August 1941

STATES

38,984,015
74,442,384

' South Carolina
North Carolina
Total ...............

Throughout the Fifth district the weather in Ailgust
was too dry for crop needs, and many crops deteriorated
during the month. The following figures show forecasts
of production made by the Department o f Agriculture on
the basis o f September 1 condition. Yield figures marked
( + ) were raised between August 1 and September 1,
and those marked ( — ) were lowered.
Cotton (Bales)
% Change

Acreage

Price per Hundred
1941
1940
$26.24
26.88
$26.66

25,346,105
__ 2.7,341,452
52,687,557

$17.78
18.89
$18.36

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

+
—
—
-

6
4
2
3

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

—
—
—
—
—
-

8
4
7
2
2
3

Bureau of Internal Revenue receipts for August show
production of tobacco products as follows in the United
States:
August 1941

July 1941

August 1940

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

25,246,366
18,404,257,790
487,033,145
3,588,223

25,931,262
15,839,874,477
487,641,197
2,917,649

R E T A IL A N D W H O LESALE TR A D E
DEPARTMENT STORE TRADE
Percentage increase or decrease in sales, stocks,
outstanding orders and outstanding receivables in
August 1941 in comparison with Aug. 1940 figures:
Orders Receivables
Stocks
Sales
+ 17
+ 32
+ 91
Richmond (5) .......................
+20
( + 16)
+ 19
+ 119
+ 31
Baltimore (10) .....................
4-36 ( + 22)
+ 20
+ 98
+ 29
Washington (7) .................
+32
(+ 2 3 )
+ 136
+ 18
+ 27
Other Cities (12) ...............
+32
( + 18)
+ 30
+ 106
+ 19
Fifth District (79)* ...........
+34
( + 22)
Same stores by States:
Maryland (13 .......................
+36
(+ 2 2 )
Virginia (16) .......................
+28
(+ 2 3 )
West Virginia (15) ...........
+42
( + 21)
North Carolina (16) ...........
+27
( + 19)
+54
(+ 2 7 )
South Carolina (12) ...........
* Includes stores reporting sales only.
Note: Second figure under Sales, in parentheses, compares combined sales
in 8 months of 1941 with sales in first 8 months of 1940.

%

Changes in Sales, August and 8 Months of 1941
Compared with Compared with
8. Months
August 1940

Maryland (9) ...........
Dist. of Col. (7) . . .
Virginia (13) ...........
North Carolina (5)
South Carolina (7) .
District (41)

+
+
+
+
+
+

40
38
30
75
74
42

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

+ 40
+ 21
+ 38

+
+
+
+
+
+

28
40
28
30
43
33

+ 28
+ 14
+ 40

W HO LESALE TRADE, 195 FIRMS

LINES

Automotive supplies (9)
Shoes (4) .........................
Drugs & sundries (13) .
Dry goods (8) .................
Electrical goods (15)
Groceries (58) ...............
Hardware (15) ...............
Industrial supplies (8 ).
Paper & products (9)
Tobacco & products (9)
Miscellaneous (47) ___
District Average (195)

Net Sales
August 1941
compared with
Aug.
July
1941
1940
+ 34
+ 67
+ 6
+ 37
+ 26
+- 1
+ 62
+ 66
+ 64
— 1
+ 20
0
+ 52
+ 10
+ 58
+ 4
+ 56
+ 9
+ 31
+ 6
+ 42
+ 8
+ 36
+ 11

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

Stocks
Ratio Aug.
Aug. 31, 1941
collections
compared with to accounts
Aug. 31 July 31 outstanding
August
1940
1941
77
+ 25
+ 5
— 4
40
+ 5
+ 32
91
+ 6
49
- 8
+ 19
74
+ 83
+ 12
100
+ 20
+ 3
— 1
45
+ 1
+ 16
+ 10
90
— 3
69
+ 3
+ 19
0
92
+ 38
27
+ 7
+ 25
70
+ 3

+ 11
+ 25
+ 4
+ 5
+ 5
+

7

+

25,000
739,000
966,000
1,730,000

33,000
629,000
824,000
1,486,000

16,596,000
32,389,000 —
12,404,000
47,400,000 —
22,964,000
131,753,000 —

17,535,000
36,490,000
12,852,000
44,733,000
24,304,000
135,914,000

16,173,000
32,418,000
12,610,000
43,507,000
22,831,000
127,539,000

+

1
0
2

+
+

8
2

1,248,000 +
2,415,000
1,562,000
6,500,000
11,700,000
23,425,000 +

1,120,000
1,932,000
1,462,000
5,952,000
10,890,000
21,356,000

1,325,000
2,116,000
1,931,000
4,460,000
9,238,000
19,070,000

550,000
1,252,000
833,000
975,000
539,000
4,149,000

467,000
924,000
642,000
744,000
398,000
3,175,000

31,920,000
100,509,000
2,790,000
526,505,000
82,215,000
743,939,000

26,901,000
99,861,000
2,985,000
529,356,000
85,656,000
744,759,000

2,898,000
10,412,000
3,630,000
8,720,000
3,192,000
28,852,000

2,997,000
10,661,000
2,844,000
8,182,000
2,475,000
27,159,000

1,485,000
3,875,000
7,104,000
5,040,000
17,504,000

1,071,000
4,061,000
8,354,000
5,401,000
18,887,000

216,000,000
371,000,000
23,250,000
610,250,000

149,865,000
249,288,000
9,041,000
408,194,000

Hay (Tons)

West V ir g in ia ___
North Carolina . ..
South Carolina . ..
Fifth Dirstrict ..

478,000 —
984,000 +
812,000 +
998,000 —
613,000 +
3,885,000 +

Tobacco (Pounds)

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

+ 3
— 2
— 10
+ 1
+ 5
+

1

31,280,000 —
85,097,000 —
2,240,000 —
461,580,000 —
70,550,000 —
650,747,000—

Irish Potatoes (Bushels)

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

— 3
+ 1
0
+ 1
+ 7
+

1

2,489,000—
6,776,000
3,630,000 +
6,723,000 +
2,730,000
22,348,000 +

Sweet Potatoes (Bushels)

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

+ 11
+ 3
+ 8
+ 3
+ 6

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

— 6
— 5
— 30
- 7

1,500,000 —
3,680,000 —
7,840,000—
5,200,000 +
18,220,000 —

Peanuts (Pounds)
157,500,000—
284,760,000
13,650,000 —
455,910,000 —

Apples, Commercial (Bushels)
Maryland

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

West Virginia ----North Carolina . ..
Fifth District ..

Source: Bureau of the Census.




Yield
1930-1939

Oats (Bushels)

RETAIL FURNITURE SALES
STATES

22,000 +
516,000 +
411,000 —
949,000 +

Yield
1940

Com (Bushels)

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

Smoking & chewing
tobacco, pounds ...............
Cigarettes, number .................
Cigars, number .......................
Snuff, pounds ...........................

Yield
1941

(Compiled September 20, 1941)

2,250,000
11,859,000 —
5,102,000
1,400,000
20,611,0 0 0 -

2,077,000
10,660,000
4,868,000
962,000
18,567,000

1,996,000
10,366,000
4,796,000
966,000
18,124,000

MONTHLY REVIEW, September 30, 1941

FEDERAL RESERVE BANK OF RICHMOND

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
IN D U S TR IA L

PRODUCTION

Industrial activity increased fu rth er in A u g u st and the first h a lf o f Sep­
tem ber, and com m odity prices continu ed to advance. D istribution o f com m odi­
ties to consum ers expanded considerably.
P R O D U C TIO N
In A u gu st industrial output increased som ew hat m ore than seasonally and
the B oa rd’ s adju sted in dex advanced fro m 160 to 161 p ercen t o f the 1935-39
average. There w ere sharp fu rth er advances in activity in the m achinery, air­
c ra ft, shipbuilding, and railroad equipm ent industries. L um ber p rodu ction also
increased, w hile fu rn itu re production, w hich had been unusually large in July,
show ed less than the custom ary seasonal rise in A ugust. O utput o f steel and
n on ferrou s metals continued at n ear-ca pacity rates.
In the autom obile industry output o f finished cars declined sharply as plants
w ere closed during the changeover to new m odel production and output in f a c ­
tories prod u cin g bodies and parts also was red u ced considerably. In the first
h alf o f Septem ber autom obile assem blies increased as p rodu ction o f new m odels
Federal Reserve index of physical volume of
was begun bu t from n ow on, ow in g to G overnm ent restriction on passenger car
production, adjusted for seasonal variation, 1935production, output w ill be considerably below that during the previous m odel
39 average=100.
By months, January 1935 to
year.
August 1941.
In m ost nondurable g oods industries p rodu ction in A u gu st continued around
the high levels reached earlier this year.
A t cotton mills activity declined
FR EIG H T-C A R LOADINGS
slightly fr o m the record level reached in July, w hile at w oolen m ills there was
som e increase. R ayon ou tpu t continued at peak levels. In the silk industry
operations w ere curtailed sharply, as the G overnm ent requisitioned all supplies
o f raw silk, and deliveries o f silk to mills declined fr o m 28,000 bales in July
to 2,000 in A ugust. R ubber consum ption also decreased, ow in g to a G overn­
m ent curtailm ent program . Shoe production, w hich had been unusually large,
increased less than seasonally in A ugust, and output o f m anu factu red fo o d
products and chem icals show ed seasonal increases fr o m the high levels pre­
vailing in June and July.
A t m ines coal produ ction in A u gust, as in other recen t m onths, w as un­
usually large fo r the season, and output o f crude petroleu m rose to a record
level o f 4,000,000 barrels daily in the latter pa rt o f the m onth. Iron ore ship­
m ents dow n the Lakes am ounted to 11,500,000 tons, the largest m onthly total
on record.
V alue o f construction con tra ct awards show ed a fu rth er sharp increase in
A u gu st and w as about fou r-fifth s larger than a y ear ago, a ccord in g to F. W .
Federal Reserve index of total loadings of reve­
D odge C orporation reports. The rise fro m Ju ly w as substantial f o r all general
nue freight, adjusted for seasonal variation, 193539 averages 100. Subgroups shown are expressed
types o f construction bu t was m ost pron ou n ced fo r pu blicly-financed projects.
in terms of points in the total index. By months,
A w ards f o r residential bu ildin g continued to increase.
January 1935 to August 1941.
D IST R IB U T IO N
Sales o f general m erchandise rose sharply in A u g u st and w ere at an exWHOLESALE PRICES OF BASIC COMMODITIES
CTtrem ely high level fo r this tim e o f year. The B oa rd’ s seasonally adju sted index
6
N
1 0 o f departm ent store sales advanced to 133 p ercen t o f the 1923-25 average as
6
Ko com pared w ith 115 in Ju ly and an average o f 103 in the first h a lf o f this year.
In the early part o f Septem ber departm ent store sales declined fr o m the peak
1 0 reached in the latter part o f August.
2
10
0
R ailroad freigh t-car loadings in A u gust w ere m aintained in the large vol1 0 ume reached in June and July.
8
Coal shipm ents increased, fo llo w in g som e
I leo reduction in July, while loadings o f grain, w hich had been large since last spring,
. declined.
- 140
C O M M O D ITY P R IC E S
10
2
W holesale prices o f m ost grou ps o f com m odities continued to advance
io from the m iddle o f A u gu st to the m iddle o f Septem ber.
o
P rices o f grains, other
foodstu ffs, and cotton show ed large increases and there w ere advances also in
prices o f a num ber o f industrial com m odities n ot covered b y F ederal p rice ce il­
ings. F ragm en tary data available indicate that retail prices o f fo o d s and other
Bureau of Labor Statistics’ indexes based on
com m odities rose fu rth er during this period.
12 foodstuffs and 16 industrial materials, August
A G R IC U L T U R E
1939^=100. Thursday figures, January 3, 1935 to
September 11, 1941.
The ou tlook fo r agricultural production in 1941 show ed little change during
August. Crop prospects w ere reduced slightly b y drought but a ggregate crop
p roduction is expected to be tw o percen t larger than last year and the largest
MONEY RATES IN NEW YORK C ITY
f o r any year except 1937. T otal m arketings o f livestock and livestock products
w ill p roba bly be the largest on record. P relim inary estimates o f the D epart­
m ent o f A gricu ltu re indicate that cash fa rm incom e, including G overnm ent
paym ents, w ill be about $10,700,000,000, com pared w ith $9,120,000,000 in 1940.
......" TR :EASURY bo NDS..........
B A N K C R E D IT
C om m ercial loans at rep ortin g m em ber banks in 101 cities continu ed to
’■ A s
\s
rise substantially during the fo u r weeks ending Septem ber 10. Bank holdings
\A ,
o f U nited States G overnm ent securities showed little net change, w hile h oldings
o f other securities increased som ewhat at N ew Y ork City banks. A s a result
TREASURY NOTES
o f the expansion in loans and investm ents bank deposits continued to increase.
V 5t
Y
I
/*
UN ITED S T A T E S G O V E R N M E N T SE C U R IT Y M A R K E T
vu
TREASlJRY BILLS
> -v .
P rices o f Treasury bon ds increased in the latter pa rt o f A u g u st b u t sub­
sequently declined som ewhat in the first part o f Septem ber. On Septem ber 15,
1935
1936
1937
1938
1939
1940
1941
the partially tax-exem pt 2 % p ercen t 1960-65 bonds w ere y ield in g 2.06 percen t
com pared w ith the record low yield o f 2.02 percent. Y ields on T reasu ry n otes
Weekly averages of daily yields of 3- to 5-year
showed little change in the period.
tax-exempt Treasury notes, Treasury bonds call­

u

3

J \

able after 12 years, and average discount on new
issues of Treasury bills offered within week. For
forweeks ending January 5, 1935 to September 13,
FRASER
1941.

Digitized


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