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MONTHLY REVI EW of Financial and Business Conditions _ F if t h F ed eral Federal Reserve Bank, Richmond, Va. Buy W ar B onds ^ ' icicnmond® y va. n c __ R eserve .....D i s t r i c t September 30, 1942 Buy S a v in g s St a m p s INVEST FOR VICTORY NOW MONTHLY REVIEW 2 The General Situation in the Fifth District N O changes of importance occurred in trade and in dustry in the Fifth Reserve district in August, but agricultural prospects improved distinctly. Industries handling war materials continued to work to capacity, and large wage payments enabled workers to buy consumers' goods in large quantities from retailers. Distribution of goods to consumers is restricted in in stalment lines, and other credit sales have also declined substantially in recent months, but cash sales are much above normal and in some lines more than compensate for the decline in credit sales. Total sales in department stores in August were 6 per cent larger than August 1941 sales, but cash sales alone showed an increase of 41 per cent. Furniture sales, on the contrary, which are largely instalment sales under normal conditions, declined 25 per cent from August 1941 sales. Wholesale trade in most lines was in about the same dollar volume in August as a year ago. In spite of increased sales reported by depart ment stores and certain other retailers, the public is spend ing less for consumer goods than a year ago, since it is now impossible in most instances to buy automobiles, tires, bicycles, refrigerators, numerous types of household appliances, and many articles made of critical material, including some wearing apparel such as nylon hosiery, wool linings for coats and suits, etc. Millions of dollars are being saved and made available for other purposes by restrictions on gasoline sales. The industrial plants of the district are operating for the most part on work either directly or indirectly con nected with the war effort, and are running to capacity insofar as labor and material are available. Textile plants are working generally on a two shift, 80-hour per week basis, and all of them with machinery which is suitable are turning out cloth for army and navy use. Shipyards, airplane plants and coal mines are accelerating output, and railroads are using every available engine and car. The cigarette industry, a leading one in the Fifth district, set a new output record in each of the past three months. The only industry in the district which has been hard hit by the war restrictions is the full-fashioned hosiery in dustry, which can neither convert machinery to war work nor obtain suitable silk and nylon yarns to continue nor mal operations. Prospects for farmers in the Fifth district are very bright this year, both from a standpoint of yields and the amounts to be received for the crops. The two leading cash crops are tobacco and cotton. The prospective 1942 yield of tobacco is 17 per cent above the 1941 yield, prices paid for tobacco sold in the Carolinas in August were 42 per cent above August 1941 prices, and if final returns measure up to expectations the tobacco growers should receive something like 65 per cent more for their 1942 crop than they received for the 1941 crop. In cotton the story is approximately the same, with production forecast to be 65 per cent above 1941 production and current prices for cotton about 10 per cent higher than a year ago. All leading crops except wheat and peaches show higher yields this year than in 1941, and all except Irish potatoes are above the ten-year average. A special effort was made to increase the peanut crop at the request of the Govern ment, and prospective yield is 47 per cent above that of 1941. Early in the summer a lack of rain made it doubt ful that good yields in feed and food crops would be ob tained, but from midsummer on the weather was favorable and crops responded remarkably. While the 1942 wheat yield in the Fifth district was 2 per cent lower than the yield a year ago, and peaches-declined 13 per cent, oats increased in yield this year by 7 per cent, corn showed a slight gain, hay increased 15 per cent, Irish potatoes rose 17 per cent, and sweet potatoes gained 25 per cent. On September 1 the condition of pastures in the district was one of the best on record for the same date. FINANCIAL AND BUSINESS CONDITIONS IN THE FIFTH FEDERAL RESERVE DISTRICT August 1942 Debits to individual accounts (25 cities)......... Sales, 77 department stores, 5th district......... Sales, 115 furniture stores, 5th district........... Sales, 213 wholesale firms, 5th district........... Tobacco sold in 5th district (Pounds)........... Average price of tobacco sold, per 100 lbs..... Growers’ receipts from tobacco, 5th district.... $2,120,526,000 $ 16,646,728 $ 3,002,578 $ 17,124,000 153,808,332 $ 37.86 $ 58,233,788 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 manufactured, 5th district______ Cigarettes manufactured, U. S-----------------Bituminous coal mined, 5th district (Tons)-. Bituminous coal mined, U. S. (Tons)_____ 12,800,000 3,900,000 17.542.060.000 20.940.644.000 15.301.000 47.160.000 21 282,000 9,217,949 72,904,000 438,441 18.81 July 1942 $2,189,643,000 $ 14,019,059 $ 2,339,469 $ 17,424,000 $ $ $ 22 August 1941 $1,738,193,000 $ 15,718,777 $ 4,007,179 $ 17,022,000 113,426,399 $ 26.66 $ 30,243,063 32 582,000 3,961,000 90,017,000 471,112 18.67 $ 377,000 $ 12,511,101 $ 146,093,000 393,636 16.54 12,600,000 3,100,000 17.552.357.000 20.875.470.000 15.239.000 47.575.000 12 , 200,000 3,400,000 15.006.474.000 17.776.522.000 15.323.000 46.026.000 % Change Year Month + 22 — 3 + 19 + 6 + 28 — 25 — 2 + 1 + 36 ~f~ 42 + 93 — 5 — 52 +133 — 19 — 7 + 1 — — — — + + + 2 + 26 + 5 + 15 + 17 + 18 — 1 + 0 0 0 34 25 26 50 11 14 0 2 3 MONTHLY REVIEW EMPLOYMENT BANKING STATISTICS RESERVE BAN K STATEMENT ITEMS Fifth District 000 omitted ITEMS Sept. 15 Aug. 15 1942 1942 Discounts held ................................ $ 250 $ 0 Foreign loans on gold................... 110 66 Industrial advances ..................... 805 820 205,540 Government securities ............... 227,984 Total earning assets................. 229,149 206,426 Circulation of Fed. Res. notes. 617,824 566,394 Members’ reserve deposits........ 520,251 475,115 Cash reserves ................................ 884,773 946,569 Reserve ratio .................................. 80.06 80.33 SELECTED ITEMS— 41 REPORTING MEMBER BANKS Fifth District 000 omitted ITEMS Sept. 16 Aug. 12 1942 1942 Loans to business & agriculture. $141,938 $141,744 All other loans.................................... 151,744 157,194 Investments in securities............... 712,737 725,907 Reserve bal. with F. R. bank........ 313,225 299,607 Cash in vaults.................................... 30,322 31.404 Demand deposits .............................. 942,004 914,350 Time deposits ...................................... 206,463 204,460 Money borrowed .............................. 0 0 Sept. 15 1941 38 9 811 119,663 120,521 360,870 458,036 767,512 85.78 $ Sept. 17 1941 $159,045 168,937 505,320 303,409 26,640 728,498 210,815 0 M U TU A L SAVINGS BAN K DEPOSITS 9 Baltimore Banks Total deposits . . . August 31, 1942 July 31, 1942 August 31, 1941 $223,807,378 $222,076,549 $223,974,988 DEBITS TO IND IVIDU AL ACCOUNTS CITIES Aug. 1942 000 omitted J uly Aug. 1942 1941 The outstanding feature in the labor situation in the Ffth district at present is the scarcity of farm labor for harvesting and preparing fields for fall planting. Agri cultural labor has been drained from farms by selective service and by the call of high wages in defense industries, and farmers are faced with a serious problem in trying to hold sufficient workers to carry on their operations. Members of farm families are doing more work in the fields than usual. In the cities, many people who have never worked outside of the home and numerous people who had retired from active work are securing employ ment, partly as a patriotic move to help out and partly from necessity to supplement incomes of white collar families in order to meet high taxes and bond purchases. White collar workers on monthly and yearly salaries have benefitted from the sharp increase in National income to a very limited degree, and in many cases women and older people who have not been income producers in the past are compelled to seek employment to supplement incomes which are now or soon will be insufficient to meet living costs, taxes and extra calls such as bond buying. The following figures, compiled for the most part by the Bureau of Labor Statistics, show the trends of employ ment and payrolls in Fifth district industries from July to August: Percentage change from July 1942 to Aug. 1942 in amount on payroll of payroll % of Change Month Year IIn number STATES Washington $ 389,797 $ 423,845 Maryland Baltimore ............. 611,727 643,617 Cumberland ......... 9,839 11,395 Frederick............... 9,387* 8,975* . Hagerstown ......... 13,264 15,477 North Carolina Asheville ............. 18,477 19,494 Charlotte ............. 132,716 127,593 Durham ................. 86,956 62,762 Greensboro ........... 24,585 26,619 Kinston ................. 7,594* 4,235* Raleigh ................. 41,917 56,374 Wilmington ......... 30,633 29,754 Wilson ................. 11,317* 6,334* Winston-Salem . 52,137 70,917 South Carolina Charleston ........... 33,458 35,152 Columbia ............. 51,412 44,076 Greenville ............. 21,877 32,429 Spartanburg......... 19,074 16,876 Virginia Charlottesville . . . 9,773* 10,301* Danville ............... 14,157 11,469 Lynchburg ........... 16,910 18,415 Newport News . . 20,078 21,042 Norfolk ............... 108,857 117,717 Portsmouth ......... 12,910 12,898 Richmond ............. 267,025 250,293' Roanoke ............... 32,466 35,138 West Virginia Bluefield ............... 18,836* 21,813* Charleston ........... 68,549 68,073 Clarksburg ........... 12,064* 13,401* Huntington ........... 28,774 26,206 Parkersburg ........ 12,931 12,012 District Totals . . $2,120,526 $2,189,643 ♦Figures not included in District Total. $ 347,499 - 8 + 12 499,706 10,351 — 5 — 14 + 4 — 14 + 22 — 5 + 3 + 48 + 62 — 6 *49,i70 — 5 + 4 + 39 — 8 + 79 — 26 + 3 + 79 — 26 28,067 36,448 27,496 15,527 — 5 + 17 -3 3 + 13 + 19 + 41 — 20 + 23 ' 9,8is 16,761 14,214 74,798 6,937 202,956 34,925 — 5 + 23 — 8 — 5 — 8 0 + 7 — 8 + 44 + 1 + 41 + 46 + 86 + 32 — 7 *1*1,833 18,026 89,911 53,725 26,259 *49,568 19,222 61*188 21,35i 12,437 $1,738,193 — 14 + 1 — 10 + 10 + 8 — 3 + i2 — 15 + 59 + *6 + 12 + 35 + 4 -r 22 COMMERCIAL FAILURES Figures on insolvencies in the Fifth district and the United States, as compiled by Dun & Bradstreet for several recent periods, are as follows: PERIODS August 1942. July 1942. August 1941. 8 Months, 1942. 8 Months, 1941. Number of Failures District U. S. 21 698 22 764 32 954 223 7,085 281 8,564 Total Liabilities District U. S. $ 282,000 $ 6,781,000 582,000 8,548,000 377,000 11,134,000 3,237,000 75,914,000 3,108,000 96,712,000 Maryland ................................................................. Dist. of Col...................................... ......................... Virginia ..................................................................... West Virginia ................... .................................... North Carolina ....................................................... South Carolina ....................................................... District Average .............................................. + 5.0 — 2.0 + 1.1 — 0.6 — 0.1 + 0.6 + 1.4 + 6.3 — 0.9 + 4.8 + 5.1 + 3.8 + 6.8 + 5.1 BITUMINOUS COAL MINING Bituminous coal mines in the United States produced 47,160,000 net tons in August 1942, a decrease of 1 per cent from 47,575,000 tons mined in July this year but a rise of 2 per cent over 46,026,000 tons in August last year. Total production this calendar year to September 12 of 399,318,000 tons exceeded output of 340,830,000 tons in the corresponding period last year by 17 per cent. In addition to increased demands for coal from industries and railroads this year there has been a sharp rise in the amount of coal needed for heating to supplement short supplies of fuel oil. In the Fifth district production of coal in August 1942, July 1942 and August 1941, was as follows: SOFT COAL PRODUCTION IN TONS REGIONS West Virginia ....................... Virginia ................................... Maryland .................................. 5th District ....................... United Stales ................... % in D istrict.................... Aug. 1942 13,404,000 1,744,000 153,000 15,301,000 47,160,000 32 July 1942 13,357,000 1,720,000 162,000 Aug. 1941 13,492,000 1,675,000 156,000 15,239,000 47,575,000 32 15,323,000 46,026,000 33 CONSTRUCTION The value of building permits issued in Fifth district cities in August rose sharply from July figures, but con tinued substantially below the level a year ago. August 1942 permits in 29 cities totaled $9,217,950, but $7,000,000 of this amount was accounted for by Washington. Per- MONTHLY REVIEW 4 mits issued in July 1942 totaled $3,961,251, and the August 1941 total was $12,511,101. Last month Wash ington led in permits with $7,001,931, Norfolk was sec ond with $594,905, Richmond third with $469,563, Green ville, S. C., fourth with $339,680, and Baltimore fifth wth the low total of $280,164. Total permits issued in the 29 cities this calendar year through August amounted to $61,515,491, compared with $97,884,625 for the first 8 months of 1941. The aggregate value of August construction contract awards in the Fifth district was $72,904,000, a decrease of 50 per cent from $146,093,000 reported for August 1941, a record to that date. Most of the value in awards is for work connected in some way with the war effort. Fig ures on contract awards by states for July 1942, which were not available when the August 31 R eview went to press, were reported by the F. W . Dodge Corporation as follows: CONSTRUCTION CONTRACTS AWARDED STATES July 1942 July 1941 Maryland ........................... $ 12,399,000 $ 16,132,000 Dist. of Columbia............. 17,913,000 7,802,000 Virginia ............................ 47,784,000 15,462,000 West V irginia.................... 566,000 14,995,000 North Carolina ................. 3,185,000 6,845,000 South Carolina ................ ...............8,170,000________3,097,000 Fifth District ................. $ 90,017,000 $ 64,333,000 % Change — 23 +130 +209 — 96 — 53 +164 + 40 COTTON TEXTILES Cotton textile mills in the Fifth district are running to capacity, and spindle hours in August totaled 5,889,218,782, approximately 54 per cent of total spindle hours in the United States. South Carolina operations averaged 524 hours per spindle in place, Virginia averaged 475 hours, and North Carolina averaged 473 hours, all above the United States average of 458 hours per spindle. Nearly all mills are working on war orders, and output of cotton cloth for civilian consumption has diminished considerably. Operatives in Southern textile mills have recently received increases in rates of pay. COTTON CONSUMPTION—FIFTH DISTRICT In bales MONTHS No. Carolina So. Carolina Virginia District August 1942.................. 232,531 183,057 22,853 438,441 254,179 194,317 22,616 471,112 July 1942.................. August 1941.................. 211,487 163,161 18,988 393,636 8 Months, 1942.................. 1,939,731 1,492,642 177,785 3,610,158 8 Months, 1941.................. 1,718,484 1,299,951 146,262 3,164,697 % Inc. in 1942................. +13 +15 +22 +14 RAYON YARN PRODUCTION Manufacturers of rayon filament yarn shipped 38,400,000 pounds to domestic consumers in August 1942, ac cording to Rayon Organon, in comparison with 40,000,000 pounds shipped in July this year and 37,300,000 pounds in August 1941. Total deliveries of filament yarn during the eight months of the cotton year amounted to 309,700.000 pounds, an increase of 5 per cent over 295,900,000 pounds delivered in the first eight months of 1941. Pro duction of rayon yarn in August exceeded shipments, and reserve stocks held by manufacturers consequently rose from 6,600,000 pounds on July 31 to 7,300,000 pounds on August 31. Deliveries of rayon staple fiber in August totaled 12,800.000 pounds, against 12,600,000 pounds in July and 12.200.000 pounds in August last year. Total deliveries of staple fiber this calendar year to the end of August amounted to 101,200,000 pounds, an increase of 14 per cent over 89,100,000 pounds delivered in the correspond ing period last year. Stocks of staple fiber held by pro ducers rose from 3,100,000 pounds to 3,900,000 pounds during August. COTTON STATISTICS Spot cotton prices on ten Southern markets were lower in August and the first half of September than in earlier months this year. From an average price of 18.67 cents per pound for middling grade at the end of July, the average price declined to 18.52 cents on August 21, rose to 18.81 cents on August 28, and then dropped again to 18.65 cents on September 4. From that day there was a slight rise to 18.74 cents on September 18. The weak ness of the price in August appeared to be due chiefly to favorable developments of the 1942 crop and to un easiness with regard to the effect of ceiling price regula tions. The second forecast of 1942 cotton production, issued on September 8 by the Department of Agriculture, raised the estimate from 13,085,000 bales to 14,028,000 bales, a distinctly larger increase than the cotton trade had ex pected. Production of 14,028,000 bales this year, if realized, will exceed the 1941 crop of 10,744,000 bales by 31 per cent, and will be 7 per cent larger than average production in 1931-1940. In the Fifth Reserve District, North Carolina’s perspective yield rose 31,000 bales above the estimate made a month earlier, South Carolina’s yield rose 16,000 bales, and Virginia’s rose 2,000 bales, a total increase of 49,000 bales for Fifth district cotton growing states. Production figures in Fifth district states are on page 5. COTTON CONSUMPTION AND ON HAND—BALES August August 1941 1942 Fifth district states: 438,441 Cotton consumed ........................ 393,636 Cotton growing states: 803,046 Cotton consumed ........................... 741,108 Cotton on hand August 31 in 1,503,953 1,317,551 Consuming establishments ......... 7,218,672 8,902,155 Storage & compresses.................. United States : 925,089 872,035 Cotton consumed ........................... Cotton on hand August 31 in 1,694,557 1,949,295 Consuming establishments ....... 9,297,607 7,546,268 Storage & compresses ................. 23,042,256 22,973,572 Spindles active ................................... AUCTION TOBACCO MARKETING Auction tobacco markets opened in the South Carolina belt on August 6 this year, a week earlier than the 1941 opening. Eastern Carolina markets, all in North Caro lina, opened on August 25, one day earlier than last year. Prices paid for tobacco in August averaged 42 per cent higher than August 1941 prices, 36 per cent more to bacco was sold last month, and farmers received 93 per cent more cash from the sales. Perspective yield figures on tobacco were increased in all Fifth district states ex cept Maryland and South Carolina during the past month, and the total crop for the district is 17 per cent larger than the 1941 yield. If present prices are maintained during the balance of the selling season, money returns from the 1942 tobacco crop will probably exceed returns from the 1941 crop by approximately 65 per cent. Sales in August, all of flue-cured type tobacco, were as follows: Producers’ Tobacco Sales, Lbs. Price per Hundred STATES August 1942 August 1941 1942 1941 South Carolina ............. 59,888,960 38,984,015 $38.32 $26.24 North Carolina ............. 93,919,372 74,442,384 37,57 26,88 Total ............................. 153,808,332 113,426,399 $37.86 $26.66 MONTHLY REVIEW TOBACCO MANUFACTURING CROP FORECASTS For the third successive month the number of cigarettes manufactured in August in the United States set a new record. On the other hand, production of cigars, smok ing and chewing tobacco and snuff was lower than in July. Production figures released by the Bureau of In ternal Revenue on September 22 are as follows: Smoking & chewing tobacco, pounds ............... Cigarettes, number ............... Cigars, number .................. Snuff, pounds ......... ............ August 1942 July 1942 August 1941 22,564,144 20,940,644,080 498,872,075 2,764,896 23,818,062 20,875,470,140 510,823,310 3,194,908 24,489,824 17,776,522,190 491,027,685 2,971,991 RETAIL AND WHOLESALE TRADE DEPARTMENT STORE TRADE Richmond Baltimore Washington Other Cities District Change in August 1942 sales in comparison with sales in August 1941 + 7 + 9 -j- 4 + 6 + 6 Change in Jan.-Aug. 1942 sales in comparison with sales in Jan.-Aug. 1941 + 13 +19 +23 +15 +18 Change in stocks on Aug. 31, 1942 compared to stocks on Aug. 31, 1941 + 51 +41 +61 +28 +49 Change in outstanding orders on Aug. 31, 1942 compared with Aug. 31, 1941 —25 —12 —33 —20 —25 Change in total receivables on Aug. 31, 1942 compared with Aug. 31, 1941 —26 —33 —27 —32 —29 Percentage of current receivables as of Aug. 1, 1942, collected in August 49 (33) 53 (38) 53 (40) 49 (35) 52 (38) Percentage of instalment receivables as of Aug. 1, 1942, collected in Aug 21 (17)_______ 26 (20)_______ 18 (15)_______ 20 (14)_______ 20 (16) Note: 1941 percentages in parentheses. State figures on sales, August 1942 compared with August 1941, and total sales in 8 months this year com pared with total sales in the like 1941 period, show the following percentage changes: Maryland + 9 & + 2 0 ; Virginia + 9 & + 1 6 ; West Virginia — 19 & 0 ; North Carolina + 5 & + 4 ; South Carolina + 2 8 & + 2 3 . RETAIL FURNITURE SALES Percentage Changes in August 1942 Sales Compared with Compared with STATES Aug. 1941 July 1942 — 17 + 35 Maryland (11)* ......... Dist. of Col. (8)* — 9 + 30 —24 + 24 Virginia (34)* ......... + 20 —38 West Virginia (15)* -3 6 + 29 North Caroline (25)* —38 + 26 South Carolina (22)* -2 5 + 28 District (115)* . . . . Individual Cities —34 - 7 Danville, Va. (3)* ............... + 21 f-13 Norfolk, Va. (4)* ............... —52 -35 Richmond, Va. (8)* ........... — 38 -18 Charleston, W. Va. (4)* . . . . —52 -14 Huntington, W. Va. (3)* . . — 49 -17 Charlotte, N. C. (4)*......... -34 — 45 Winston-Salem, N. C. (3)*. —54 - 2 Columbia, S. C. (3)* ......... — 19 + 19 Greenville, S. C. (3)* ......... —56 + 7 Greenwood, S. C. (3)* . . . . — 17 + 35 Baltimore, Md. (11)* ......... + 30 — 9 ♦Number of reporting stores. WHOLESALE TRADE, 213 FIRMS Stocks Ratio Aug. Net Sales August 31, 1942 August 1942 collections compared with compared with to accounts Aug. 31 July 31 outstanding July Aug. LINES Aug. 1 1941 1942 1942 1941 85 — 5 +17 Auto supplies (10)....... -1 2 52 + 20 + 28 Shoes (4) .................... + 15 113 Drugs & sundries (10) + 3 + 13 54 — i2 + 27 + 35 Dry goods ( 7 ) . . ........... + 5 53 — 34 -3 3 — 22 + 5 Electrical goods (11) . . — 1 115 — 1 — 8 + 12 Groceries (69) ............. — 13 62 —26 — 2 Hardware (13)* ......... + 1 — 13 78 — 19 — 2 8 Industrial supplies (8) 83 — 3 — 9 + 30 — 19 Paper & products (10) + 19 Tobacco & products (5) + 1 85 — 5 — 7 — *8 — 9 Miscellaneaus (66)* .. — 2 74 — 7 — 7 District Average (213) + 1 Source: Department of Commerce. 5 The following figures, issued by the Department of Agriculture, show forecasts of production in 1942 based on September 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 August 1 and September 1, and those marked ( — ) were lowered. Cotton (Bales) Change Yield Acreage 1930-39 +22 31,000 626,000 + 6 820,000 + 1 1,477,000 + 3 Yield 1941 28,000 552,000 406,000 986,000 Yield 1942 35,000 + 736,000 + 858,000 + 1,629,000 + Com (Bushels) 16,173,000 + 2 + 5 32,418,000 + 6 12,610,000 — 4 43,507,000 — 3 22,831,000 — 1 127,539,000 15,164,000 32,942,000 12,307,000 52,096,000 22,316,000 134,825,000 17,290,000 + 35,910,000 + 13,051,000 45,460,000 + 23,244,000 134,955,000 + Hay (Tons) — 1 467,000 924,000 + 5 642,000 + 3 744,000 + 5 398,000 +10 3,175,000 + 5 472,000 1,250,000 79'3,000 1,071,000 470,000 4,056,000 540,000 + 1,494,000 + 875,000 1,208,000 + 558,000 4,675,000 + Irish Potatoes (Bushels) 2,997,000 1,920,000 ............... — 4 10,661,000 6,916,000 West Virginia 2,844,000 3,795,000 .............. + 9 North Carolina .............. + 5 8,182,000 6,636,000 South Carolina . .............. + 8 2,475,000 2,548,000 District Total . ,.............. 21,815,000 + 3 27,159,000 2,240,000 + 7,666,000 + 3,960,000 8,632,000 3,108,000 25,605,000 + Sweet Potatoes (Bushels) ........... ............... + 1 3 1,071,000 1,040,000 .............. — 3 4,061,000 2,970,000 North Carolina .............. — 10 8,354,000 6,880,000 South Carolina . .............. 5,401,000 +13 4,400,000 District Total . ............ — 1 18,887,000 15,290,000 1,350,000 — 4,320,000 + 7,560,00045,890,000 — 19,120,000 + % .............. North Carolina , .............. South Carolina . ,.............. District Total ................ Maryland ........................... .............. West Virginia ............ North Carolina . , ............. South Carolina . ,.............. District Total ............ Maryland ........... ............. .............. West Virginia , . ,.............. North Carolina . ,.............. South Coralina .............. District Total ............ Maryland ........... Maryland Tobacco (Pounds) Maryland ........... ............... ............... West Virginia . ............... North Carolina . .............. South Carolina . ............... District Total . .............. 20,225,000 + 3 26,901,000 32,162,000 — 99,861,000 88,572,000 +10 95,820,000 + 2,985,000 +14 2,610,000 3,135,000 + + 1 1 529,356,000 459,490,000 536,046,000 + 85,656,000 69,660,000 92,250,GOO+11 + 1 0 744,759,000 650,557,000 759,413,000+ Peanuts (Pounds) 146,390,000 169,510,000 208,000,000 + 246,869,000 265,640,000 396,800,000-18,962,000 8,670,000 49,000,000+402,221,000 443,820,000 653,800,000 + ............... + 1 9 North Carolina . , .............. +35 South Carolina . . .................. +312 District Total . .............. +42 Maryland ........... West Virginia . , North Carolina . . South Carolina District Total . Maryland ........... West Virginia North Carolina . . District Total . , Peaches (Bushels) 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 10,275,000 510,000 1,840,000 — 600,000 + 2,463,000 — 3,500,000 — 8,913,000- Apples, Commercial (Bushels 1,911,000 1,905,000 11,085,000 11,800,000 4,317,000 4,288,000 1,009,000 1,505,000 18,322,000 19,498,000 2,048,000 + 14,274,000 + 4,818,000 1,164,000 — 22,304,000 + Pastures, September 1 Condition 67 76 West Virginia 74 North Carolina . . , 80 South Carolina . . 70 Maryland ........... (Compiled September 21, 1942) 72 79 82 83 78 93 98 95 91 80 MONTHLY REVIEW 6 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) INDUSTRIAL Industrial output continued to rise in August and the first half of Sep tember and retail distribution of commodities also increased. Prices o f farm products and foods advanced further. PRODUCTION PRODUCTION Federal Reserve monthly index of physical volume of production, adjusted for seasonal vari ation, 1935-1939 average = 100. Latest figures shown are for August 1942. Industrial output increased in August and the Board’s seasonally adjusted index rose 3 points to 183 per cent of the 1935-1939 average. There were further marked increases in activity in the machinery, transportation equip ment, and other armament industries. Crude petroleum production increased considerably from the reduced level of recent months and output o f manu factured food products rose more than is usual at this time of year. Pro duction of materials, such as steel, nonferrous metals, coal, and lumber, con tinued in large volume. Value of construction contracts awarded in August declined from the record high levels of June and July, according to figures of the F. W. Dodge Corporation. The extent to which the continuing large volume of construction reflects the war program is indicated by the fact that in the first eight months of this year 84 per cent of total awards have been for publicly financed projects and in recent months the percentage has been higher. DISTRIBUTION DEPARTMENT STORE SALES AND STOCKS Distribution of commodities to consumers increased considerably in Aug ust, reflecting particularly marked increases in department store sales and in sales of general merchandise in small towns and rural areas. Dollar value of sales to consumers in August was somewhat lower than the unusually large sales of a year ago, when there was a considerable amount of anticipatory buying, while average prices were about 12 per cent higher. On the basis of physical volume, therefore, sales were smaller than a year ago. Railroad freight-car loadings were sustained at a high level during Aug ust and the first half of September, reflecting continued large shipments of most classes of freight. COMMODITY PRICES Federal Reserve monthly indexes of value of sales and stocks, adjusted for season'al varia tion, 1923-1925 average = 100. Latest figures shown are for August 1942. MEMBER BANK RESERVES AND RELATED ITEMS XJULAKS BILLIONSOF FACTORS SUPPLYING RESEF :— / AGRICULTURE FACTORS USING RESERV! -------------- 1-------------- Crop prospects improved considerably during August and aggregate produc tion this year is expected to be about 15 per cent greater than in 1941, which was close to a record year for crops. Unusually high yields per acre are indicated for most major crops and for some others, like oil-seed crops, sub stantially increased acreages are expected to be harvested. Feed grain supplies are expected to be of record proportions, but owing to the growing number of livestock on farms the supply per animal will probably be about the same as last season. MEMBER BANK RESERVE BALANCES i— GOLD STOCK-*—— ■ r / / r CIRCULAT TREASUR>' CURRENCY I — J ------ RESERV /E SANK CREDIT ....... 1........ ................. .... Wednesday figures. for Sept. 9, 1942. b S BANK CREDIT AND DEPOSITS A — vAX^NONMEMBER DEPOSITS 1 During August and the first half of September the general wholesale price index advanced about half a point to 99.2 per cent of the 1926 average, reflecting chiefly increases in prices of livestock products. Prices of wheat, flour, and some other uncontrolled commodities also advanced. New crop tobacco prices showed sharp increases over last year and a temporary ceiling at current levels was established for flue-cured types. Retail food prices continued to rise from the middle of July to the middle of August and further increases are indicated in September. Prices of uncon trolled foods in August were 10 per cent higher than in May. ^ Latest figures shown are EXCESS RESERVES OF MEMBER BANKS Excess reserves of member banks, which have generally fluctuated between 2.0 and 2.5 billion dollars in recent months, rose temporarily to over 3 billion on September 16. This increase was due partly to a further reduction in re serve requirements on demand deposits at central reserve city banks from 24 to 22 per cent and partly to Treasury disbursements out o f its balances with the Reserve Banks in connection with September 15 tax collections and fiscal operations. Funds for these disbursements arose in part from the is suance of special one-day certificates to the Reserve Banks. Excess reserves of New York City banks have been declining for a number of months owing principally to the excess of funds raised in that city by the Treasury over amounts expended there. The effect of this drain has been offset in part by purchases of Government securities by the Federal Reserve System and by the two successive reductions in reserve requirements. At banks outside New York City excess reserves have shown little change in recent months. These banks have lost reserves through currency drain and their required reserves have increased owing to growth of their deposits; both these factors, however, have been largely offset by transfers of funds from New York. Holdings of Government securities at New York City banks, which in creased substantially in July and August, declined somewhat in the first half of September. At banks outside New York City holdings have con tinued to increase. UNITED STATES GOVERNMENT SECURITY PRICES Wednesday figures, partly estimated. figures shown are for Sept. 9, 1942. Latest The recent 3 billion dollar Treasury cash financing operation had little effect on the Government securities market, and prices continued steady.
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