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FE dA r A ^ R E S E R V E B A N K /6 f )R IC H M O N D

SEPTEMBER

-

OCTOBER 1949

Business Conditions

M

A R K E D improvement has characterized business

conditions in the Fifth Federal Reserve District.
Most industries have either shown a leveling off or an
increase in total employment, thus reversing the trend
o f employment which prevailed in the District from
August 1948 to July 1949. More important than im­
provement in numbers employed has been the largescale return to a 40-hour week.
Construction activity in the Fifth District showed a
more than seasonal rise during August, while farm in­
come prospects were weakened somewhat by lower to­
bacco prices and extensive boll-weevil damage to the
cotton crop.
Tw o important question-marks have arisen: First,
the series of European currency devaluations, led by
the British on September 18, and the enhanced compe­
tition which these portend; second, the series of labormanagement difficulties which have occurred in cardinal
industries, whose beclouding effect is already showing
up in the bituminous coal industry. Manifestly, existent
or prospective paralyzing strikes exert a powerfully
bearish influence, whereas even a patched-up industrial
peace would exert a powerfully bullish influence on
both national and District economies.
Cotton M ills at Y ear’s H igh

Rapid recovery in the operations of cotton mills in
this District occurred in August when cotton spindlehour s run rose 29 per cent from July more than is nor­
mally seasonal to the year’s highest level and within 12
per cent of August 1948 operations.
New business was booked in sufficient quantities to
increase current output and create a rising level through
the remainder of the year. Many firms have booked
certain constructions well into the first quarter o f 1950.
Prices of all goods constructions and yarn counts
have risen from the year’s lows— in some cases these
rises have amounted to several cents, and these in­
creases have brought some mills back into production.
W ith the export market for goods and yarns again
weakening, it is not likely that total demand can carry
mill operations to the level attained in the first half of
1948. August operations on a seasonally adjusted basis
were IS per cent under this level.
Devaluation o f the British and other currencies
should not have much effect on domestic cotton goods




markets in the short run unless Lancashire manufac­
turers maintain prices and concentrate on this country’s
markets; in that event, combed yarn fabrics will feel
the brunt o f the competition. Immediate effects of these
devaluations on United States exports o f cotton goods
may be felt especially in the Canadian and South A fr i­
can markets, but even there such exports should not
decline too sharply due to foreign inability to supply
the needs o f those countries within a relatively few
months. The same conclusion can be drawn concerning
other countries to which our cotton goods exports are
now going, though in the long run, somewhat keener
competition will be offered by foreign producers. There
is the possibility that the world market may broaden in
coming months so that our industry may not acually
witness much loss in physical units, particularly if price
adjustments are offered to meet the new competition.
H osiery Conditions Better

The hosiery business has improved notably in the
last thirty days, with chain and mail order houses show­
ing increased purchases. Independent stores have con­
tinued a greater degree o f caution in their amount o f
coverage, but even here there has been a pick-up.
Recovery has been marked in the seamless which was
the segment o f the industry most depressed and in
which, therefore, a greater degree o f recovery was to
be expected.
The price structure in these types o f goods has
firmed, but the existence o f many over-age machines
has handicapped price improvement. The industry has
shown a substantial scrapping o f these over-age ma­
chines, but there are still enough left on the lines to
prevent improvement in prices at the present level of
demand.
Rayon Recovers M ost of Loss

Rayon shipments in August rose 22 per cent above
July and regained approximately three-fourths of the
decline from December 1948 to May 1949. Demand
from converters and fabricators has been extremely
active and represents in part a replenishment o f inven­
tories at these levels.

Also in this Issue:
Fifth District Income C h a n ges ............................... Page

3

P ost-W ar Trends In Farm C redit .......................... Page

7

Statistical D a ta ............................................................ Page 11

FEDERAL RESERVE B A N K O F RICHMOND

Rayon yarn mills in the District have resumed oper­
ations on a 40-hour week and most of the lay-offs have
been recalled. The processors of rayon yarns are not
likely to be caught again in the inventory position in
which they found themselves at the end o f 1948; and
their rate of purchase will probably be geared much
more closely to the consumer demand than was true in
either 1947 or 1948.

INDEX OF ACTIVE COTTON SPINDLE HOURS
FIFTH FEDERAL RESERVE DISTRICT
SEASONALLY ADJUSTED

(1935-1939=100)

Furniture Output Improves

Considerable improvement has been witnessed in the
new business written by furniture factories in this area.
Though the latest available data on shipments (July)
do not show this improvement to have been very sub­
stantial, they do indicate that expanded production can
be expected in the next several months. This is sug­
gested by improved demand from furniture factories
for hardwood lumber.

Continued on page 6

B U S IN E S S IN D E X E S — F IFTH F E D E R A L R E S E R V E D IST R IC T
A V E R A G E D A IL Y , 1935-1939 = 100— S E A S O N A L L Y A D JU S T E D
A ugust
1949
A u tom obile R egistra tion 1....................................................
Bank D eb its...............................................................................
Bitum inous Coal P rod u ction ............................................
B u ilding Contracts A w arded, T o ta l..............................
C om m ercial Construction Contracts .......................
M an ufactu ring C onstruction C ontracts— ..............
P u blic W ork s and U tilities...........................................
Residential C onstruction C ontracts...........................
Apartm ents and H otels ..................................................
One and T w o F am ily Houses____................................
B u ildin g Perm its issued......................................................
Business F ailu res— N o ................... .....................................
Cigarette P ro d u ction ......................... ...................................
Cotton Consum ption..............................................................
C otton Spindle H ou rs.......................................................
D epartm eent Store Sales3..................................................
D epartm ent Store S tock s3............................. ......
E lectric P ow er P rod u ction ...............................................
E m ploym ent— M fg. In dustries1......................... .............
Furniture M f r s .: O rd ers3.......................... .........................
Furniture M fr s .; Shipm ents3................... ..................
Furniture M f r s .: U nfilled O rders3................................
Furniture— R e t a il: 3 4
N et S a les................................................................................
C a s h —.................................................................................
C redit......................................... ........................................
R eceiv a b les.............................................................................
C o llection s................................... - .....................................
In ven tories.............................................................. ..............
Ga.snlinp Cnnmimntinn _____ ___________
___ _
H ou seh old A ppliance Store Sales1.................................
L ife Insurance S a les.........................................
.........
W h olesa le T r a d e :
A u tom otive Supplies2........................................................
D ru gs.................... ...................................................................
D ry G o o d s...................... ......................................................
E lectrical G o o d s2..................................... ............................
G roceries................................................................................
H a rd w a re...................................
...... ......
Industrial Su pplies2........................ ......................
P aper and Its P rod u cts2............................................
T o b a cco and Its P rod u cts2..............................................
1
2
3
4

June
1949

A u gust
1948

205
316
90
343r
294
259
344r
349r
417
299
396
112
208r
102
100
326
302
252
119r
401
187
396

180
320
121
334
266
138
303
440
1145
285
479
69
248
115
119
311
311
250
121r
127
162
202

146
365
170
337
291
722
243
346
397
301
284
38
264
142
146
327
322
274
136
365
250
756

+ 14
+ 11
+ 36
+ 32
+ 14
— 31
— 38
+ 89
+253
+
5
— 2
— 46
+ 20
+ 26
+ 29
— 6
— 2
+
1
__ 2
+216
+ 15
+ 96

+ 55
— 4
— 28
+ 34
+ 15
— 75
— 12
+ 91
+271
+
4
+ 36
+ 58
— 5
— 9
— 12
— 7
— 8
— 3
— 11
— 30
— 25
— 46

194
231
169
116
167
142
___
lOlp
247

208r
236r
181r
113
160r
126r
___
96p
239

189
260
163
111
166
134
___
112
242

220
294
187
105
172
151
___
114
255

— 7
— 2
— 7
+
3
+
4
+ 13
__ _
_
+
5
+
3

— 12
— 21
— 10
+ io
— 3
— 6
_____
— 11
— 3

363
263
156
57
252
169
216
120
68

371
264
104
68
260
125
219
116
78

380
270
128
73
259
122
296
135
82

377
264
246
88
277
218
285
167
87

—

—

350
122
453
536
179
213
660
1474
313
387
60
250p
129
129
305
295

N o t seasonally adjusted.
1938-41 = 100
R evised Series— back figures available on request.
1941 = 100




% Change—-Latest M o,
Y e a r ago
Prev. M o.

July
1949

r 21

2
0
+ 50
— 16
— 3
+ 35
—
1
+
3
— 13

—
—
—
—
—
—
—

4
0
37
35
9
22
24
28
22

M ON TH LY R E VIE W

SEPTEMBER - OCTOBER 1949

Fifth District Income Changes
Income payments in each of the states of the Fifth
Federal Reserve District established all time high rec­
ords in 1948, and raised the Distrrict total to $15,738
million for gains of 8.0 per cent over 1947 and 176.6
per cent over 1940.
Currently it appears that both the income and trade
level will be somewhat lower in 1949 than in the peak
year 1948, though the decline apparently will be less
than 5 per cent. Such a prospect is encouraging at a time
when the national economy has had some fairly severe
problems both domestically and internationally. Ear­
lier fears o f a repetition of the deflation which followed
W orld W ar I are slowly being dispelled. New elements
exist for which there is no precedent as to effect on fu ­
ture income levels— such a s : greater rigidities in the
commodity price level, greater availability of bank credit
than in any previous recession, new factors like unem­
ployment compensation and farm price supports, and a
new note of uncertainty introduced into our interna­
tional economy and financial relations by the suddenness
and magnitude of the British devaluation.

cent. The percentage change in income payments o f
Fifth District states from 1947 to 1948 found South
Carolina at the top with a gain o f 11.4 per cent and the
District o f Columbia at the bottom with a gain o f 4.5
per cent. Other states in the Fifth District showed in­
creases in this period from 7.0 per cent to 10.5 per cent.
The same general pattern was shown in the percent­
age increase from 1940 to 1948 with South Carolina
leading and the District o f Columbia trailing. One d if­
ference in other District states shown in the 1947 to
1948 increase from that shown in 1940 to 1948 was a
shift between North Carolina and W est Virginia for
second and fourth places. North Carolina which had
shown the second largest percentage increase o f Fifth
District states from 1940 to 1948 traded places with
W est Virginia in the 1947 to 1948 comparison.
Income payments in all Fifth District states in 1948
rose much more substantially from 1929 than the na­
tional total, but only North Carolina and the District
of Columbia show substantially greater gains from 1920
to 1948 than the national total. Maryland and Virginia
recorded gains from 1920 to 1948 about the same as
the national total, while those in W est Virginia and
South Carolina fell well below it. It is clear that gains
in this District vis-a-vis national depend on the period
selected for comparison, a fact apparent in Chart B.
The amount of income and the changes- from 1920 to
1948 for each Fifth District state, the District as a
whole, and the United States can be observed in the fol­
lowing table while the long range pattern o f dollar
income payments figures can be seen in Chart A.
TABLE 1

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

INCOME PAYMENTS
1948
Percentage Change 1948 fr o m :
($ Million)
1947
1940
1929
1920
3,116
7.0
155.0
181.7
205.2
1,885
4.5
108.3
195.5
254.3
3,326
9.0
195.1
237.0
204.3
2,166
10.5
185.0
173.1
160.0
3,531
6.5
212.2
265.5
270.9
1,714
11.4
214.5
291.3
157.4
15,738
8.0
176.6
219.4
208.8

United States ....... 206,011

8.9

171.6

149.4

200.7

Relative Contribution of Fifth District States
to the National Total

The Fifth District increase from 1947 to 1948 was
somewhat smaller than the national increase of 8.9 per
cent, but from 1940-1948 was moderately larger than
the national increase in the same period of 171.6 per




Though dollar income payments in Maryland, the
District o f Columbia, Virginia, W est Virginia, North
Carolina, and South Carolina jointly and severally es­
tablished an all time high record in 1948, their peak
contributions to the national total in all cases were
established prior to 1948. In the Fifth District as a
whole the peak contribution to the natioal total came in
1942; in South Carolina and W est Virginia in 1919 and
1920 respectively; in the District o f Columbia in 1940;
in Maryland and Virginia in 1942; and in North Caro­
lina in 1946.

[3 ]

FEDERAL RESERVE B A N K O F RICHMOND

Chart B reveals the fact that the Fifth District as a
whole failed to maintain its proportion o f national in­
come payments between 1919 and 1924, showed reason­
ably constant proportions from 1925 through 1930,
stepped up sharply from 1931 through 1934, held rea­
sonably steady from 1935 through 1939, rose from 1940
to a new peak in 1942, declined somewhat in 1943, held
fairly steady through 1946, and showed a slight down­
ward tendency in 1947 and 1948.
CHART B

INCOME PAYMENTS TO INDIVIDUALS. PER CENT OF U. S.
(ANNUALLY, 1 9 1 9 -1 9 4 8 )
PERCENT

PERCENT

PER

2.0
1.8
1.6

1
.4
1.2

1
.0
1.8
1.6
1.4
1.2

1
.0
.8

D istrict O f Columbia

1920

1925

1930

1935

1940

1945

6

L l 1 1 I I 1 I I I I I I I I M I I I I I I 1 I I ■ I I I I .4
1920
1925
1930
1935
1940
1945

Changes in the Fifth District percentages of the na­
tional total, however, cover up numerous cross-currents
in the states. W est Virginia, which showed a down­
ward trend in its percentage of the national total from
1934 through 1943, has shown a rising trend ever since.
The District of Columbia, which showed its largest per­
centage of the national total in 1940, has shown a
downward trend since that year. Both Maryland and
Virginia have shown down-trends in their percentages
since 1943 anad 1942 respectively, though a slight ad­
vance is recorded for Virginia between 1947 and 1948.
From 1942 through 1948 South Carolina showed very
little variation in its percentage o f national income pay­
ments whereas those o f North Carolina continued to rise
from 1942 to 1946 and subsequently turned downward.
There are many factors entering into the relative
changes in income payments in the Fifth District— such
as the growth of manufacturing industries, the relative
expansion in mineral output, the expansion of Govern­
ment payments, and the durable-nondurable composition
of manufacturing. A major factor, however, in ac­




counting for the large changes over the past 29 years
has been the difference in price movements o f important
products of the Fifth District in comparison with price
changes for the national economy generally.
The slide in the percentage o f income payments con­
tributed by Virginia, North Carolina, and South Caro­
lina from 1919 through 1930 was in the main caused
by the relatively greater decline than the national price
level in such raw materials prices as cotton, cottonseed,
lumber, and tobacco and their reflection o f their de­
clines in prices of products manufactured from these
materials. The rises in the percentages of these same
states from 1931 through 1934 was a combination of
relative price change and a depression resistant and
earlier recovering group o f industries such as cigarettes,
cotton goods, food products, hosiery and rayon. M ary­
land, Virginia, North Carolina, and South Carolina had
relatively heavier war expenditures for industrial and
military facilities in the early stages o f the war than
the rest o f the United States and these were important
factors in raising their percentages o f national income
payments from 1940 through 1942. Here agricultural
prices were rising faster than other prices and in each
o f the mentioned states, except Maryland, agriculture
is of greater importance to the economy than is true for
the United States as a whole.
Percentages of national income payments are shown
in Table 2. From 1929 through 1948 these percentages
were computed from the income payments figures com­
piled by the Income Division o f the U. S. Department
of Commerce; from 1919 through 1928, from produced
income figures compiled by the National Industrial Con­
ference Board, published in the Economic Record, Sep­
tember 8, 1939, and adjusted arithmetically throughout
this period by the difference shown in 1929 between
Conference Board and Commerce percentages.
TABLE

2

PERCENTAGE OF NATIONAL INCOME PAYMENTS
Md.
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
193,}
1934
1935
1936
1937
1938
1939
1940
1941.
1942
1943
1944
1945
1946
1947
1948

[4 ]

D. C.

Va.

W. Va.

N. C.

S. C.

Fifth
District

1.43
1.44
1.38
1.33
1.25
1.31
1.28
1.33
1.31
1.32
1.34
1.41
1.50
1.57
1.56
1.54
1.43
1.47
1.48
1.52
1.52
1.61
1.64
1.73
1.73
1.68
1.62
1.60
1.54
1.51

.70
.73
.91
.90
.84
.83
.81
.83
.85
.83
.77
.88
1.C0
1.15
1.07
1.05
1.08
1.12
1.10
1.18
1J5
1.19
1.13
1.08
1.03
.99
1.03
1.01
.95
.92

1.81
1.55
1.43
1.33
1.27
1.25
1.21
1.23
1.26
1.25
1.19
1.17
1.24
1.38
1.38
1.45
1.45
1.42
1.38
1.42
1.41
1.49
1.61
1.82
1.73
1.73
1.70
1.65
1.61
1.62

1.05
1.18
1.12
1.11
1.13
1.01
1.03
1.05
1.03
.97
.93
.93
.95
.97
1.02
1.11
1.06
1.09
1.07
1.04
1.01
1.00
.98
.93
.88
.90
.95
.97
1.04
1.05

1.54
1.34
1.33
1.30
1.31
1.21
1.28
1.26
1.31
1.23
1.17
1.11
1.11
1.21
1.4 3
1.59
1.53
1.48
1.49
1.53
1.55
1.49
1.56
1.60
1.60
1.65
1.69
1.77
1.75
1.71

1.18
.93
.79
.71
.70
.62
.60
.56
.58
.55
.53
.50
.51
.55
.65
.71
.69
.69
.67
.68
.70
.72
.76
.82
.81
.84
.84
.83
.81
.83

7.74
7.74
6.96
6.68
6.50
6.23
6 21
6.26
6.34
6.18
5.96
6.00
6.31
6.84
7.14
7.45
7.33
7.27
7.19
7.37
7.34
7.50
7.68
7.98
7.78
7.79
7.83
7.83
7.70
7.64

M O N TH LY R E VIE W

SEPTEMBER - OCTOBER 1949

W hat Caused the Income Rise?

the increased importance o f government income pay­
ments, although in all industrial classifications, except
agriculture, the percentage increase in the Fifth Dis­
trict has been slightly greater than nationally. A gri­
cultural income payments in the Fifth District, however,
increased but 227 per cent in the period while in the
nation they rose 285 per cent. The District’s rela­
tively greater than national increase in government in­
come payments, acted as an offset to the relatively lower
gain in agricultural income payments.
Percentage increase in income payments between 1940
and 1948 by industrial classification is shown in Table 4
for the Fifth Dstrict, for each o f its states and for the
United States.

Income payments to individuals in Fifth District
states rose $2,445 million, or 75 per cent, from the
depression low in 1933 to 1940. From 1940 to 1948
such payments increased by $10,048 million, or 177 per
cent. The sources of this very large gain are o f great
interest.
In order to show the sources of the changes, dollar
figures were derived for income payments in five major
divisions as follow s: agricultural payments, government
payments, manufacturing payrolls, trade and service
payments, and all other payments. The dollar changes
in these payments from 1940 to 1948 for each state by
type of income have been expressed as percentages of
the $10,048 million gain shown for the Fifth District in
this period, and comparison is shown in Table 3 with
the percentage of dollar increases in the national total
during the same period. Note that the percentages add
across to the District totals and down to the state totals.

TABLE 4
PERCENTAGE INCREASE IN INCOME PAYMENTS FROM
1940 TO 1948

These figures show trade and service income pay­
ments accounting for 26.3 per cent of the total dollar
increase from 1940 to 1948 with Maryland, Virginia
and North Carolina accounting for 17.2 per cent. The
“ all other” group accounted for 21.5 per cent o f the
$10,048 million gain with Maryland, Virginia, and W est
Virginia accounting for 14.8 per cent. The gain in gov­
ernment income payments was 20.7 per cent of the total
gain, nearly half of it being shown in the District of
Columbia and Virginia.
Manufacturing payrolls ac­
counted for 20.3 per cent of the District gain in income
payments with North Carolina and Maryland contrib­
uting more than half. The dollar increase in agricultural
income payments was 11.2 per cent of the District in­
crease in total income payments, with North Carolina
head and shoulders above any other District state.
It is interesting to note that District and national per­
centages of total dollar gains from 1940 to 1948 were
not greatly different in the several industrial classificatons except in the case of government income payments.
In the Fifth District these payments accounted for 20.7
per cent o f the $10,048 million gain in the period under
review, whereas nationally these payments accounted
for only 14.8 per cent of the $130,159 million gain in
the same period. Thus, in the period from 1940 to 1948
the income payments position of the Fifth District rela­
tive to that of the nation has been maintained largely by




D.C.
117
132

Va. W .Va. N.C,
254
193
240
273
234
314
198
186
220

207

162

199

212

224

202

201

191

90

53

133

162

130

125

115

106

Total income paym’ts 155

TABLE 3
PERCENTAGES OF 1940-1948 DOLLAR INCREASES IN TOTAL
INCOME PAYMENTS BY INDUSTRIAL ORIGIN— FIFTH
DISTRICT AND UNITED STATES
Fifth
Md. D'.C. Va. W.Va. N.C, S.C. Dist. U.S.
11.2
11.9
2.0
.9
4.7
2.8
Agricultural payments .... . .8
14.8
20.7
1.7
3.8
2.2
3.4 4.4
5.2
Government payments
23.6
3.4
20.3
6.1
.3
3.6
2.6
Manufacturing pay rolls .. 4.3
Trade and service
28.1
26.3
2.5
3.1
5.6
5.5
industries ....................... 6.1 3.5
21.5
21.6
1.5
3.7
5.7
4.8
All other payments .......... 4.3 1.5
Total income payments 18.9 9.7 21.9 14.0 23.9 11.6 100.0 100.0

Fifth
Dist. U.S.
227
285
211
204
203
200

Md.
191
235
166

108

195

185

212

214

177

172

Agricut’l payments
Government payments
Manuf’g pay rolls .......
Trade and service
indus. payments .........
All other income
payments ....................

S.C.
202
284
286

Per Capita Income

Per capita income for the Fifth District as a whole
has shown considerable improvement during the past 20
years. In 1929, per capita income payments were but 65
per cent of the national average. By 1947 this had risen
to 82 per cent of the national average, with the 1948 fig­
ure o f 81 per cent showing little change. However, the
1947 and 1948 relationships to the national per capita
income were not greatly different from what they were
as far back as 1920 when the Fifth District per capita
income was 79 per cent o f the national average.
Maryland and the District of Columbia have main­
tained a higher per capita income than the national aver­
age in the entire period for which statistics are available.
Though variations are noted in the position o f M ary­
land’s per capita income to the national income in 1929
and 1940, this state has shown a fairly constant per
capita income percentagewise, above the national aver­
age. Although the District o f Columbia’s income is
well above the national average, there has been a general
tendency for that gap to lessen over the past 10 years.
Virginia and North Carolina, whose per capita income
have ranged from less than half to over 80 per cent of
the national total, have shown a general tendency to in­
crease relative to the United States, and the same is
true of W est Virginia and South Carolina from 1929
forward.
The relative position of the Fifth District and its
states in relation to the national per capita income is
shown in Table 5. Again, the relatively better or poorer
performance o f the states or the District depends on the
period selected for review.

[5]

FEDERAL RESERVE B A N K OF RICHMOND

TABLE 5

The chart showrs a close correspondence in sales of

PER CAPITA INCOME IN THE FIFTH FEDERAL
RESERVE DISTRICT

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

department stores in this District to income levels. Cer­

PerCent o f U. S.Per Capita Income
19481948
1947
19401929
1920
$1,546
110 110
124
103
108
1,691
120
123
188
175
188
1,159
82 82
78
62
72
1,133
80
79
69
68
88
930
66 68
55
45
57
86561
60
50
37
61
1,149
81 82
78
65
79

tain discrepancies appear, as in the price inflation fol­
lowing the first W orld W ar and probably accounted for
in part by the inadequacy of our department store fig­
ures and in part by the accumulation of savings by
people in this area at that time.

The divergence from

1942 through 1945 is accounted for by the fact that
Income and Trade

income payments were growing rapidly due to fuller

Income levels are obviously important to all those
engaged in business enterprise. Hence Chart C is in­
cluded to show both income payments and department
store sales in the Fifth District.

employment and increasing wages whilst goods avail­
able for purchase were unavailable in quantities com ­
mensurate with the rise in income while prices were
controlled.

CHART

C

banks and in the holdings of W ar Savings Bonds.

I N D IC E S O F D E P A R T M E N T S T O R E S A L E S AND
IN C O M E P A Y M E N T S TO I N D I V I D U A L S
PERCENT

(1 9 3 5 - 1 9 3 9 = 1 0 0 )

The result was a great increase in liquid

saving, reflected both in growth of time deposits of

Conclusion

PERCENT

The District’s proportion o f national income pay­
ments has declined slightly in recent years.

For the

near future, it is likely that there will be little change
in the Fifth District’s share o f national income pay­
ments, even assuming further price reductions.

This

evaluation is based on the assumption that prices of
commodities produced in the Fifth District— and espe­
cially of such farm products as cotton and tobacco, in
view of the price support program— will not repeat the
very large drops o f the 1920-1930 period in comparison
with prices in the economy as a whole.

Business Conditions
Continued from page 2

Construction Strong

A strong upward surge in residential construction,
chiefly in apartments and hotels, carried the Fifth Dis­
trict August index of building contract awards on a
seasonally adjusted basis 32 per cent higher than in
July. This achieved a new high postwar level and was
34 per cent higher than in August 1948. Only factory
buildings, public works and utilities moved contrary to
the uptrend. Factory building awards fell 31 per cent,
seasonally adjusted from July to August, and were 75
per cent smaller than a year ago.
For the year to date, construction contract awards in
the Fifth District have aggregated $656 million, an
amount only 5 per cent smaller than in the same period
last year. If the present uptrend continues, 1949 will
exceed the high level o f 1948.
Trade L evels Ease

port in the Fifth District) have given evidence of con­
siderable stability. For the first eight months, dollar
sales declined a mere 2 per cent, as compared with the
same period of 1948. W hen adjusted for changes in
the average price level, this means that physical sales
volume is running ahead of last year and is considerably
better than the national department store sales figures,
which, for the first eight months of this year, were 6 per
cent under the same period of last year.
On a month-to-month basis, furniture store sales are
down 12 per cent, and household appliance store sales
are down 11 per cent. Sales of most wholesalers, though
considerably below a year ago, showed improvement
from July to August on a seasonally adjusted basis.
Dry goods and hardware both showed marked increases
in this period, and moderate improvement was reported
in paper; but other lines showed further deterioration
between July and August.

Department store sales (fo r the 94 stores which re­




[6 ]

Continued on page 10

SEPTEMBER - OCTOBER 1949

M ON TH LY RE VIE W

Post-War Trends In Farm Credit
Fifth Federal Reserve District
Farmers in the Fifth District are making increasing
use of bank and other loan credit in financing the con­
tinued high production of farm products. Non-realestate credit is being used in larger amounts to finance
purchases of machinery, household appliances, automo­
biles, livestock, building and soil improvements, and the
currently high expenses of crop and livestock production.
Total farm non-real-estate loans outstanding on Jan­
uary 1, 1949 were $99.6 million, an increase o f nearly
two-thirds over the $60.9 million outstanding four years
earlier. Borrowings from commercial banks have in­
creased 136 per cent, and Production Credit Association
loans in the District have more than doubled. Only in
the case of the Farmers Home Administration, which
loans to farmers who are ineligible for bank and PC A
loans, has there been a decline in loans outstanding.
Since January 1 of this year, agricultural loans not
secured by farm real estate have continued to increase,
and on June 30 outstanding non-real-estate loans to
farmers by member banks totalled $51.0 million. This
figure excludes CCC loans and may be compared with
$34.1 million outstanding December 31, 1948 and $43.5
million on June 30, 1948.
Total farm-mortgage debt in the District has increased
from $232.6 million on January 1, 1945 to $305.6 million
on January 1, 1949. In this field the most notable devel­
opments have been the 31 per cent increase in total realestate debt outstanding, declines both in total amount and
shares of the debt held by agencies of the Farm Credit
Administration and the Farmers Home Administration,
and increases in amount and relative shares of the debt
held by commercial banks, and by individuals and others.
The problem o f farm debts, both non-real-estate and
real-estate, is probably most usefully considered in re­
spect to farm income. W e have noted a rise in total farm
real-estate debt of 31 per cent from 1945 to 1949 for
the District, and the increase in non-real-estate loans of
farmers was 64 per cent. If both types of loans are
combined, the total on January 1, 1949 was 38 per cent
above January 1, 1945.
Cash receipts from farm marketings in the District in
1948 were 32 per cent above the 1945 figure, but in 1949
receipts are expected to be somewhat less than they were
last year. The rise in net income is, of course, probably
less than the rise in gross income because of increases
in prices paid by farmers for commodities used in
production. From the standpoint of current income,
however, Fifth District farmers do not appear, in the
aggregate, to have excessive indebtedness.
The current trend in farm prices is downward, and,
as is usual in such times, it may be expected that some
individual farmers will find fixed interest and amortiza­




[7]

tion charges rather difficult to handle. W here loans have
been made with adequate consideration for the long-run
income producing possibilities of the farm, it is probable
that farmers and lenders will have little difficulty. If a
long general decline in farm prices and incomes were to
occur, it is likely that extensive refinancing o f farm in­
debtedness would be necessary.
The increasing mechanization and commercialization
o f farms in this District operates to increase farm
cash operating costs relative to total costs and increases
the need for short-term farm credit. Similarly, larger
amounts of short and intermediate-term credit will prob­
ably be needed to finance agricultural readjustments.
These readjustments will be particularly necessary in
cotton producing regions in order to maintain farm
income if cotton production is reduced by marketing
quotas.
N on-R eal-Estate Loans

Commercial banks, Production Credit Associations,
and the Farmers Home Administration are the three
principal institutional sources of non-real-estate loans in
the District.
Commercial banks are now the most important sup­
pliers o f short-term credit for farmers in the District as
a whole, and in each state except South Carolina. For
the entire District the dollar volume o f non-real-estate
loans outstanding increased 64 per cent from 1945 to
1949. The largest percentage increase was noted in
Maryland where the 1949 volume outstanding was 128
per cent above 1945, and the smallest increase, 14 per
cent, occurred in South Carolina.
In addition to increasing their dollar volume o f nonreal-estate loans outstanding, commercial banks have
been able to increase their share o f this important type
of farm credit. In 1945 Fifth District banks provided
40 per cent of farmers’ non-real-estate loans as com­
pared to 45 per cent for the Farmers Home Administra­
tion and 15 per cent for Production Credit Associations.
Four years later the share of commercial banks had in­
creased to 57 per cent while F H A held 22 per cent and
P C A ’s 21 per cent o f the total.
Commercial banks are most important as sources of
non-real-estate loans in Virginia where they now hold
three-fourths of the total outstanding. In the other four
states the proportion held by banks is less, and in South
Carolina only 31 per cent o f these loans were made by
banks in 1949. It is possible that these lower propor­
tions may reflect greater use of merchant and dealer
credit, or more effective competition from Production
Credit Associations. In South Carolina loans of the
Farmers Home Administration are particularly im­
portant.

FEDERAL RESERVE B A N K O F RICHMOND

Production Credit Associations, as noted above, are
also important sources of non-real-estate loans for farm­
ers. Tney are private cooperative associations of farm­
ers chartered and supervised by the regional Production
Credit Corporation, a subsidiary of the Farm Credit
Administration.
Farmer borrowers must own stock
equal to about 5 per cent of their loans, and the rest is
owned by the regional Production Credit Corporation.
As of June 30, 1948, farmer-owned stock totaled $51
million for the country as a whole and $31 million was
owned by P C C ’s. Loan funds are obtained by discount­
ing with the regional Federal Intermediate Credit Bank.
These associations are, in fact, directly competitive
with banks in this important loan field, and most bank­
ers are keenly aware of it. In choosing between a bank
and Production Credit Association as a source of credit,
a farmer will usually consider such things as (1 ) inter­
est and service charges, (2 ) ease of loan application,
(3 ) time required to consider applications, (4 ) the pur­
chase of P C A stock required with P C A loans, and (5 )
general service offered with the loan. It seems likely
that in most localities the relative shares o f non-realestate loans made by banks and P C A ’s depend on the
vigor, extent, and effectiveness of the competition o f­
fered by banks in this field.
Production Credit Associations have increased their
loans outstanding in the District from $9.5 million in
1945 to $20.6 million in 1949, a gain of 117 per cent.
The greatest percentage gain, 142 per cent, was made
in North Carolina, and the least, 53 per cent, was in
W est Virginia.
P C A credit, like bank credit, increased relative to the
total in the last four years. On the whole, about 21 per
cent of the non-real-estate loans outstanding in the Dis­
trict were held by P C A ’s in 1949 as compared to 15
per cent in 1945. A similar increase in the share of
farm non-real-estate loans held by P C A ’s is noted for
each state except W est Virginia.
A s sources of non-real-estate loans to farmers, P C A ’s
are least important in Virginia where only 14 per cent
of the total is now held by them. In contrast Maryland
and North Carolina Production Credit Associations ac­
counted for 29 and 27 per cent, respectively, of the total
outstanding in their states.
The Farmers Home Administration, successor to the
Farm Security Administration, is not competitive with
either commercial banks or Production Credit Associa­
tions in lending to farmers. Its loans, both real-estate
and non-real-estate, are intended to meet the credit
needs of farmers who cannot obtain credit from banks,
P C A ’s, or other regular commercial sources. In a period
of rising farm prices and incomes, it might be expected
that both the absolute volume and relative share of
short-term credit supplied by the Farmers Home A d ­
ministration would decline, and this has occurred. Be­
cause o f higher prices, favorable crop yields, and the
effective supervision and instruction given them, many




[8]

borrowers were able to repay their loans ahead of sched­
ule. Others were able to reduce them sufficiently to
become eligible for bank credit, and these loans were
taken over by banks. In general, the Farmers Home
Administration refuses to continue credit to a borrower
once he is able to obtain a bank loan.
The dollar volume o f Farmers Home Administration
non-real-estate loans in the District dropped from $27.3
million in 1945 to $22.1 million in 1949, and F H A ’s
share o f the total declined from 45 per cent to 22 per
cent. Declines in total F H A loans are noted in each
state in the District except Maryland. For compara­
bility, Emergency Crop and Feed Loans outstanding on
January 1, 1945 and 1946 have been classified as F H A
loans although these loans were not transferred to this
agency until late 1946.
The Farmers Home Administration is most import­
ant as a supplier o f short-term credit in South Carolina
where it held 50 per cent o f the non-real-estate loans
outstanding on January 1, 1949. South Carolina farm­
ers have been heavy F H A borrowers for a number o f
years, and in 1945 nearly three-fourths o f the dollar
volume o f their non-real-estate loans came from the
Farmers Hom e Administration.
TABLE 1
AGRICULTURAL LOANS* NOT SECURED BY FARM REAL ESTATE:
TOTAL OUTSTANDING AND PROPORTIONS HELD BY
PRINCIPAL LENDER GROUPS, JANUARY 1
___________
FIFTH DISTRICT BY STATES, 1945-1949
Year
and
Area

Total

Proportions Held By
Insured
Production
Farmers
Commercial
Credit Home AdminBanks
Assoc’ns istration**

1000 Dollars

Per Cent
Per Cent
Per C
Fifth District
1945
39.5
15.6
44.9
60,908
1946
44.2
16.1
39.7
62,345
1947
52.4
16.8
30.8
75,309
1948
54.2
18.9
26.9
88,722
1949
57.1
20.7
22.2
99,601
Maryland***
1945
7,166
46.2
28.0
25.8
1946
51.4
23.9
24.7
7,358
1947
27.0
10,619
21.1
51.9
16.4
1948
13,133
56.9
26.7
1949
56.9
29.2
13.9
16,371
Virginia
1945
18,857
61.5
12.9
25.6
65.6
12.2
22.2
1946
19,456
1947
70.6
11.9
17.5
23,298
14.1
1948
29,324
73.3
12.6
14.1
10.9
1949
34,089
75.0
West Virginia
37.2
45.8
1945
17.0
5,280
1946
16.2
39.0
44.8
5,110
28.4
1947
6,453
56.6
15.0
61.3
16.4
22.3
1948
7,868
19.3
1949
64.8
15.9
8,612
North Carolina
49.6
1945
14,559
32.7
17.7
37.4
20.5
42.1
1946
15,570
44.4
22.1
33.5
1947
18,495
43.1
24.9
32.0
1948
21,221
25.4
26.7
47.9
23,341
1949
South Carolina
73.3
16.2
10.5
15,046
1945
19.4
12.4
68.2
1946
14,851
54.0
34.0
12.0
16,444
1947
29.9
17.2
52.9
17,176
1948
19.6
49.6
30.8
17,188
1949
* Excludes CCC Loans.
** Excludes loans to cooperatives and Defense Relocation Corporations.
Includes Emergency Crop and Feed Loans. Data for 1945 and 1946
are for Farm Security Administration which was succeeded by Far­
mers Home Administration November 1, 1946.
*** Includes District of Columbia.
Sources: Bureau of Agricultural Economics and Federal Deposit In­
surance Corporation.

SEPTEMBER - OCTOBER 1949

M ON TH LY REVIEW

The relative share of F H A loans in total non-realestate credit has declined in each state in the District.
In Virginia only 11 per cent of the total dollar amount
is now held by the Farmers Home Administration. In
Maryland the proportion is now 14 per cent; in W est
Virginia, 19 per cent; and in North Carolina, 25 per
cent.
Loans guaranteed by the Commodity Credit Cor­
poration, which have not heretofore been considered,
originate from the farm price-support activities of the
government and are best considered apart from the other
short-term credit needs of farmers. Insured commercial
banks, however, are holding an increasing amount of
CCC loans. The District total was $26.8 million on Jan­
uary 1, 1949 as compared to $1.3 million in 1948, $0.9
million in 1947, $10.5 million in 1946, and $30.9 million
in 1945. The rise in CCC loans obviously reflects the
fall to support levels of important crops grown in the
District.
Farm -M ortgage Debt

The largest percentage rise in farm-mortgage debt
from 1945 to 1949 occurred in Virginia where the total
increased 41 per cent. Farm-mortgage debt holdings o f
commercial banks and individuals and others increased,
while real-estate loans of the Farm Credit Administra­
tion and Farmers Home Administration declined. The
latter agency loans only to farmers who cannot obtain
real-estate credit from oher sources.
That farm real-estate loans are becoming increasingly
more attractive to commercial banks is shown by the
fact that since 1945 the dollar amount held by banks in
the District has more than doubled. Substantial in­
creases occurred in each state, but the greatest relative
rise was in South Carolina where commercial ban£s in
1949 held nearly three times as much farm-mortgage
debt as in 1945.
In addition to making more farm real-estate loans,
commercial banks have increased their share of the total
farm-mortgage debt outstanding from 16 per cent of the
total in 1945 to 25 per cent in 1949. Banks were the
only institutional leaders to increase their share o f the
farm-mortgage debt, and, therefore, it appears that
under the relatively favorable farm price and income
conditions of the last four years banks are more willing
to make farm real-estate loans.
Commercial banks are the most important source of
farm real-estate loans in W est Virginia where they held
45 per cent of the total in 1949. In contrast, commer­
cial banks held only 10 per cent of the total in South
Carolina.
The Farm Credit Administration through its subsidi­
aries, the regional Federal Land Bank and the Federal
Farm Mortgage Corporation, held farm real-estate loans
in the District totalling $43.3 million on January 1, 1949.
This represents a decrease of 35 per cent from the $66.6
million held in 1945.




The Federal Farm Mortgage Corporation holds loans
made by the Land Bank Commissioner. The Commis­
sioner Loans were authorized by the Emergency Farm
Mortgage A ct o f 1933, largely as a relief measure to
refinance farm mortgages on more favorable terms, and
authority to make new loans expired in 1947. Most
Federal Land Bank loans are made through National
Farm Loan Associations. These are cooperative asso­
ciations o f farmers, chartered and supervised by the
Farm Credit Administration, and farmer borrowers
must buy stock in them equal to 5 per cent o f their
loans. About 89 per cent o f F C A real-estate loans in
this District were Federal Land Bank loans on January
1, 1949.
The share of the Farm Credit Administration in total
farm-mortgage debt in the District declined from 29 per
cent in 1945 to 14 per cent in 1949, and similar substan­
tial percentage declines are noted in each state. On Jan­
uary 1, 1949 the Farm Credit Administration held only
9 per cent of the total in Maryland, while corresponding
percentages were 11 per cent in Virginia, 18 per cent in
West Virginia, 16 per cent in North Carolina, and 21
per cent in South Carolina.
L ife insurance companies have increased the total
amount o f farm-mortgage debt which they hold, but the
proportion held has been relatively constant for the Dis­
trict as a whole. Their share was 5.8 per cent on Jan­
uary 1, 1949 as compared to 6.1 per cent in 1945.
When individual states are considered, it is found
that the share o f life insurance companies increased in
Maryland and Virginia, but declined in W est Virginia,
North Carolina, and South Carolina. On January 1,
1949 these companies held 8.6 per cent o f the total farmmortgage debt in Virginia. Lesser shares were held in
the other four states, and in W est Virginia only 1.8 per
cent was in their hands.
Most of the farm ownership or real-estate loans o f
the Farmers Home Administration are made by it di­
rectly, although some are made by other loading agen­
cies under guarantee. The purpose o f these loans is
to assist qualified tenants and veterans in purchasing
farms, and half of the loan appropriation must be re­
served for veterans. Direct loans may be made up to
100 per cent and insured or guaranteed loans up to 90
per cent o f the appraised value of the farm. A loan
must be refinanced whenever a commercial bank, Fed­
eral Land Bank, or other credit source is willing to take
the loan over at a rate not exceeding 5 per cent.
Real-estate loans of the Farmers Home Administra­
tion in the Fifth District have declined in both total
dollar amount and relative to the total. On January 1,
1949 total F H A real-estate loans outstanding were $18.8
million as compared to $22.5 million in 1945. Declines
in the total outstanding are noted in each state in the
District except Maryland.

[91

FEDERAL RESERVE B A N K O F RICHMOND

Considering the District as a whole, F H A real-estate
loans comprised 9.7 per cent of the total in 1945 and 6.2
per cent in 1949. Except in Maryland, where a small
increase occurred, the share of the Farmers Home A d ­
ministration declined in each state. F H A loans are most
important in South Carolina where they comprised 13.2
per cent of the total in 1949 and least important in V ir­
ginia and Maryland where only 3.1 and 2.8 per cent,
respectively, were made or guaranteed by the Farmers
Home Administration.
TABLE 2
FARM-MORTGAGE DEBT: TOTAL OUTSTANDING AND PROPOR­
TIONS HELD BY PRINCIPAL LENDER GROUPS JANUARY 1
_______________ FIFTH DISTRICT BY STATES, 1945-1949______________

Year
and
Area
Fifth District
1945
1946
1947
1948
1949
Maryland**
1945
1946
1947
1948
1949
Virginia
1945
1946
1947
1948
1949
West Virginia
1945
1946
1947
1948
1949
North Carolina
1945
1946
1947
1948
1949
South Carolina
1945
1946
1947
1948
1949

Proportions Held By
Farm
Farmers Life In­
Home
surance Insured
Credit
Adminis­ Adminis­ Com- Commercial
tration panies Banks Others
tration
Total
1000 Dollarsi Per Ct. Per Ct. Per Ct. Per Ct. Per C
232,557
237,208
264,746
288,658
305,580

28.7
23.7
18.2
15.5
14.2

9.7
9.4
7.6
6.8
6.2

6.1
6.3
5.7
5.5
5.8

16.4
17.2
21.7
24.9
25.3

39.1
43.4
46.8
47.3
48.5

40,627
39,975
43,883
48,781
50,449

17.0
14.5
11.2
9.2
8.6

2.4
2.4
2.9
2.8
2.8

4.0
4.4
3.4
4.5
5.7

21.3
22.3
28.4
34.0
30.4

55.3
56.4
54.1
49.5
52.5

61,765
64,685
72,256
78,123
87,265

28.7
22.6
16.2
13.0
10.6

5.5
5.0
3.9
3.5
3.1

6.2
9.1
9.3
8.8
8.6

21.7
21.7
27.0
31.8
31.8

37.9
41.6
43.6
42.9
45.9

18,658
17,870
20,229
21,601
22,585

35.6
31.1
23.6
19.8
17.5

9.1
9.5
8.0
7.3
6.6

2.6
2.6
1.9
1.8
1.8

24.9
26.3
35.9
42.2
44.8

26.2
21.5
17.0
15.6
15.8

12.4
11.1
8.4
7.5
7.0

8.7
7.4
6.1
5.8
6.2

13.3
14.6
17.1
18.1
19.9

39.4
45.4
51.4
53.0
51.1

37,590
37,868
40,542
45,112
49,029

42.6
36.1
29.3
24.3
21.4

19.1
20.8
17.4
14.9
13.2

5.0
3.2
2.6
2.2
2.3

4.5
5.3
7.6
9.5
10.0

In the Fifth District, as in most other states, farm
real-estate loans by individuals and others comprise an
important part o f the total. On January 1, 1949 nearly
half of the total farm-mortgage debt was held by this
group, while in 1945 the proportion was only 39 per
cent. Lending on real estate by individuals was least
important in 1949 in W est Virginia where it accounted
for 29 per cent o f the total, but in the other states from
46 to 53 per cent was held by this group. The attrac­
tiveness o f farm mortgages as investments for indi­
viduals increases as farm income rises and probably ac­
counts for a large part o f the increase in the share of
individuals. Some increase is probably also due to farm
sales wherein the seller was willing to accept a mortgage
for part o f the price.
Conclusion

27.8
30.5
30.6
28.9
29.3

73,917
76,810
87,836
95,041
96,252

The decline in both the dollar amount and relative
share o f F H A real-estate loans reflects the favorable
prices and high farm production o f the last few years.
Many borrowers were able to repay their loans in full
or reduce them to the extent that they became eligible
for other mortgage credit. Another factor is the con­
servative loan followed by the Farmers Home Adm in­
istration and its county loan committees during a period
of rapidly rising land prices.

28.8
34.6
43.1
49.1
53.1

* Includes loans held by joint-stock land banks, savings banks, indi­
viduals, and miscellaneous lenders.
** Includes District of Columbia.
Sources: Bureau of Agricultural Economics and Federal Deposit In­
surance Corporation.

On balance, the present farm credit situation in this
District can be considered satisfactory. Banks and other
lenders are apparently providing adequate amounts of
both short and long-term credit, although they are prob­
ably laying somewhat greater stress on the actual and
prospective income o f the borrower, which is a logical
and prudent development.
In this connection, both
farmers and lenders are reminded that it is possible for
a well-planned farm loan to maintain or increase net
farm income above what it would otherwise have been,
and that a loan made on the basis o f a comprehensive
farm plan, developed in cooperation by the farmer and
the lender, will usually be profitable for both.

Business Conditions
Continued from page 6

Inventories of department stores after seasonal cor­
rection declined 2 per cent from July to August but
furniture store inventories rose 18 per cent in this pe­
riod after seasonal correction.

industries. Automobile sales are still strong— for July,
sales established a record in this District, though August
sales in three States are lower than those in July.

The setbacks recorded in both furniture store and de­
partment store sales from July to August should not
cause too much concern and do not indicate a change in
trend which has been upward since spring. Sales levels
in both types of stores have been running much higher
in this District than the operations of their supplying

The business outlook in the Fifth Federal Reserve
District has improved markedly except for the ship­
building and bituminous coal industries. Indications are
that business will exhibit a rising trend during the re­
mainder of this year— if the beclouding factor of labor
troubles is removed, or compromised for the time being.




Conclusion

I 10]

SEPTEMBER - OCTOBER 1949

M O N TH LY R E VIE W

DEBITS TO INDIVIDUAL ACCOUNTS
(000 omitted)

FEDERAL RESERVE BANK OF RICHMOND
(All Figures in Thousands)
Change in Amt. from
8-17-49
9-15-48

Sept. 14,
1949

ITEMS

+ 58,247
+
3,123
+ 61.370
— 8,584

80,221
99
80,122
7,248

Total Gold Reserves ..
Other Reserves ........
Total Reserves .........
Bills Discounted .............
Industrial Advances ......
Govt. Securities, Total .
Bonds ...........................
Notes ...........................
Certificates _______ ___
Bills .............................
Total Bills & Securities
Uncollected Items ...........
Other Assets .................
Total Assets ................

$1,163,607
19,067
1,182,674
6,538
1,107,393
499,145
19,137
359,510
229,601
1,113,953
284,804
22,700
2,604,131

—
—
■
—
■
—
+
+
+

3,370
42,164
17,127
69,908
58,830
1,681
70,725

Federal Reserve Notes in Cir....
Deposits, Total ............................
Members’ Total ......................
U. S. Treas. Gen. A cct..........
Foreign ......................................
Other Deposits ........................
Def. Availability Items .........
Other Liabilities ......................
Capital Accounts .......................
Total Liabilities ......................

$1,574,312
719,712
662,650
32,648
20,413
4,001
264,504
540
45,063
2,604,131

+
—
—
—
—
+
+
+
+
+

31,096
16,194
11,972
1,804
3,367
949
54,642
124
1,057
70,725

1

+

22

22

—

— 269,748
— 49,930
— 96.944
+ 46,016
• 168,890
—
— 278,354
— 25,525
— 2,702
— 245,211

— 62,661

0

— 104,845
— 135,944
— 128,586
— 9,537
+
1,803
+
376
— 10,059
88

—

+
5,725
— 2,45,211

----- — ----< < «>$ $
> >
51 REPORTING MEMBER BANKS— 5th DISTRICT
(All Figures in Thousands)
Change in Amt. from
8-17-49
9-15-48

Sept. 14,
1949

ITEMS
Total Loans ................................
Bus. & Agri...............................
Real Estate Loans .................
All Other Loans ....................
Total Security Holdings ...........
U. S. Treasury Bills ...............
U. S. Treasury Certificates....
U. S. Treasury Notes ...........
U. S Govt Bonds ....................
Other Bonds, Stocks & Sec.
Cash Items in Process o f Col....
Due from Banks ....................
Currency & Coin ................. .
Reserve with F. R. Banks .. ~
Other Assets .............................
Total Assetes ......................

$ 832,402**
375,225
203,043
263,065
1,844,102
160,575
234,619
43,031
1,259,748
146,129
245,510
182,674*
69,127
433,310
51,783
3,658,908

+
+
+
+
+
+
+
+
+
+
+
+
+
—
+
+

24,141
16,704
4,129
3,396
51,934
26,503
19,185
1,781
1,986
2,479
31,046
13,636
8,103
5,819'
1,245
124,286

+ 128,569
+ 61,391
+ 15,580
— 10,042
+ 62,564
—
924
— 2,167
—
948
— 1,219
— 4,600
+
1,575
+
909
+ 124,286

Total Demand Deposits ............. $2,795,592
2,118,080
Deposits of Individals ..........
59,902
Deposits of U. S. Govt............
130,605
Deposits of State & Local Govt.
445,456*
Deposits of Banks ..................
41,549
Certified & Officer’s Checks ...
614,307
Total Time Deposits .................
567,256
Deposits of Individuals .........
47,051
Other Time Deposits .............
0
Liabilities for Borrowed Money
23,153
All Other Liabilities .................
225,856
Capital Accounts ......................
3,658,908
Total Liabilities ......................

— 38,317
— 30,659
+
2,412
— 6,838
+ 149,306
+ 116,449
+ 31,846
— 48,885
+ 36.720
+ 13,176
— 21,694
— 4,916
+
3,166
— 92,458
+
4,245
—
668
—
+
—
—
—
—
+
—
+
—
+
+
—

23,588
30,988
825
43,496
4,605
5,650
13,324
13,320
26,644
3,700
3,064
10,232
668

* Net figures, reciprocal balances being eliminated.
** Less losses for bad debts.

------------- ^ ---------------CONSTRUCTION CONTRACTS AWARDED

% Chg. from

August
1949

STATES

Aug. 1948

% Chg. from
8 Mos. 1949 8 Mos. 1948

Maryland ............. $ 23,627,000
Dist. of Columbia
24,706,000
Virginia ..............
25,618,000
West Virginia ....
6,992,000
North Carolina ....
18,095,000
South Carolina
9,703,000

— 28
+ 404
+ 33
+ 51
+ 25
+ 96

$186,792,000
87.013.000
160.295.000
40.362.000
113.507.000
64.188.000

Fifth District .. $108,741,000

35

$652,157,000

8 Mos. 1948

$

$

District Totals ..

+

689,863

5,292,600

5,756,835

950,014
22,499
18,094
26,249

7,618,372
169,235
148,310
210,860

48,621
255,094
152,125
69,558
23,396
112,019
37,422
22,942
131,532

359,421
1,820,300
729,533
561,081
113,904
976,442
251,741
124,664
998,500

397,942
1,853,288
814,213
584,111
104,445
877,642
278,634
118,466
963,443

58,738
88,798
74,178
45,331

460,081
770,459
604,542
341,220

447,076
720,462
622,799
367,532

22,031
24,915
33,600
32,556
179,375
17,725
528,654
74,274

170,649
176,194
275,916
247,072
1,369,783
156,051
3,789,487
706,611

171,780
198,088
298,489
251,913
1,425,636
155,973
3,666,774
666,968

46,437
130,995
32,642
56,354
26,031

346,469
1,045,555
227,634
443,777
200,795

335,034
1,043,677
253,190
454,345
211,344

$ 4,032,062

$ 4,070,413

7,535,510
164,681
136,180
208,833

$ 31,242,685

$ 31,186,876

-<» <> <>
S $
i ON HAND--B A L E S
August 1949
Fifth District States:
Cotton consumed ......................
Cotton Growing States:
Cotton consumed ......................
Cotton on hand August 31 in
consuming establishments ....
storage and compresses .......
United Statese:
Cotton consumed ......................
Cotton on hand August 31 in
consuming establishments ....

August 1948

350,336

371,014

601,267

998,586
1,691,217

664,133

728,863

679,983
3,954,662
19,747,000

storage and compresses ........

645,451

561,884
3,943,338

Spindles active, U. S. . ......

1,245,561
1,727,335
21,356,000

Source: Department of Commerce.

-<> <> «>* *
COTTON CONSUMPTION— FIFTH DISTRICT
N. Carolina
August 1949...........
July 1949 ..............
August 1948 .......
8 Months 1949
8 Months 1948

S. Carolina

Virginia

District

153,391
105,993
156,591
1,121,782
1,316,037

182,396
126,171
197,649
1,333,881
1,712,702

14,549
7,950
16,774
92,258
140,480

350,336
240,114
371,014
2,547,921
3,169,219

Source: Department of Commerce.

-< > <> «>$ $
PRICES OF UNFINISHED COTTON TEXTILES

+ 1
1

August 1949

4

Average, 17 constructions ......
Printcloths, average (6) .........
Sheetings, average (3) ...........
Twill (1) ....................................
Drills, average (4) ..................
Sateen (1) ..................................
Ducks, average (2) ................

—

< < ------------s ♦
> >

Aug. 31, 1949




8 Mos. 1949

$

— 40
— 15

DEPOSITS IN MUTUAL SAVINGS BANKS
8 Baltimore Banks
Total Deposits ....................

Aug. 1948

— 17
+ 58

Source: F. W. Dodge Corp.

-------- —

Aug. 1949
Dist. of Columbia
Washington ........ $ 756,548
Maryland
Baltimore ...........
975,160
20,206
Cumberland ........
Frederick ...........
16,612
25,923
Hagerstown ........
North Carolina
Asheville .............
43,775
244,104
Charlotte ..............
147,007
Durham ...............
Greensboro ..........
67,353
Kinston ...............
23,109
Raleigh ...............
133,859
Wilmington ........
35,370
29,276
Wilson ...............
Winston-Salem
139,687
South Carolina
Charleston ..........
53,226
99,672
Columbia .............
Greenville ............
71,297
Spartanburg
39,961
Virginia
Charlottesville
20,881
Danville .............
23,164
Lynchburg ..........
33,585
28,643
Newport News
165,631
Norfolk ...............
21,767
Portsmouth ........
506,730
Richmond ..........
Roanoke .............
84,450
West Virginia
Bluefield ..............
36,020
Charleston ..........
121,052
Clarksburg ..........
26,874
Huntington ........
53,471
Parkersburg ......
26,000

July 31, 1949

Aug. 31, 1948

$392,986,362

$393,034,173

$392,133,804

61.38
66.39
55.00
62.65
54.92
82.75
57.53

July 1949
59.99
62.90
54.13
62.33
55.15
80.49
58.30

August 1948
77.06
85.41
62.99
91.51
67.77
121.96
62.04

N ote: The above figures are those for the approximate quantities of
cloth obtainable from a pound of cotton with adjustment for salable
Waste.
Source: Department of Agriculture.

H i]

FEDERAL RESERVE B A N K O F RICHMOND

BUILDING PERMIT FIGURES
Aug. 1949

Aug. 1948

SOFT COAL PRODUCTION IN THOUSANDS OF TONS

8 Mos. 1949

8 Mos. 1948

Aug.
1949

REGIONS
Baltimore ............. $
Cumberland .........
Frederick .............
Hagerstown .........
Salisbury .............
Virginia
Danville
..........
Lynchburg ...........
Norfolk
..........
Petersburg ...........
Portsmouth .........
Richmond ............. ..
Roanoke
........
West Virginia
Charleston ...........
Clarksburg ...........
Huntington ..........
North Carolina
Asheville .............
Charlotte .............
Durham
.......... ..
Greensboro .........
High Point .........
Raleigh .................
Rocky Mount ......
Salisbury .............
Winston-Salem ....
South Carolina
Charleston ............
Columbia ..............
Greenville ............
Spartanburg ........
Dist. of Columbit
Washington .......... .

3,940,970
29,340
51,790
185,915
90,855

$ 3,725,950
104,510
58,865
62,885
147,617

$ 32,362,415
342,440
645,917
1,676,255
1,083,541

$ 40,202,810
527,635
1,143,775
847,614
1,816,608

163,978
221,256
713,050
119,420
180,485
2,172,200
784,167

112,533
246,506
632,460
162,850
117,080
1,832,827
660,508

1,814,637
3,289,458
7,868,366
1,051,690
1,114,122
12,475,915
7,775,945

3,941,609
2,295,564
11,884,605
854,574
1,163,202
13,060,309
5,347,571

3,283,929
102,025
1,442,512

1,015,282
135,405
519,934

8,101,289
791,895
3,982,798

7,552,390
1,296,563
6,375,683

193,276
1,275,574
1,000,635
470,870
284,575
910,900 x
87,820
100,100
375,757

334,424
1,073,298
625,666
551,730
745,120
1,617,128
229,000
289,100
561,450

1,886,401
14,823,065
5,681,375
7,248,112
1,980,357
5,569,325
1,021,868
872,537
5,859,797

1,957,967
13,752,856
7,540,603
7,515,062
3,395,245
7,528,037
1,326,625
874,450
4,336,151

178,976
373,030
460,550
134,665

2,986,621
4,427,018
7,276,110
2,812,568

2,228,975
4.983,748
4,788,000
1,672,321

West Virginia
V irginia ............
Maryland ..........
Fifth District
United States ....
% in District

11,483
1,488
46
13,017
37,752
34.5

15,450
1,810
110
17,370
53,779
32.3

— 26
— 18
— 58
— 25
— 30

8 Mos
1949

8 Mos.
1948

%
Chang

96,510
10,543
467
107,520
320,272
33.6

107,802
13,488
1,162
122,452
388,667
31.5

— 10
— 22
— 60
— 12
— 18

Source: Bureau of Mines.

------------- < < <>
£ $ $-------------> >
RAYON YARN SHIPMENTS AND STOCKS
Aug. 1949

138,349
400,245
684,429
234,027
8,855,335

4,162,395

51,637,879

$20,871,744

$198,459,710

July 1949

Aug. 1948

Rayon yarn shipments
Staple fiber shipments .

68,800,000
19.300.000

58.700.000
13.600.000

71.400.000
21.800.000

Rayon yarn stocks
Staple fiber stocks

42.200.000
12.700.000

48.600.000
16.800.000

10,500,000
4,700,000

Source: Rayon Organon.

-< > <> < >
♦ $ *AUCTION TOBACCO MARKETING
Producers’ Tobacco Sales, Lbs.
August 1949 August 1948
77,881,097
145,441,314

$48.49
47.40

$52.67
51.34

291,028,449

Total .

$194,032,571

223,322,411

47.80

51.80

■
--------------------------------------<♦>

TOBACCO

Percentage comparison of sales in
periods named with scales in same
periods in 1948
August 1949
K Mos. 1949

STATES
Maryland (5)* .........................
District of Columbia (6 )*........
Virginia (18)* ...........
West Virginia (7)*
...........
North Carolina 12)* .............
South Carolina (9)* ...............
District (57)* . . .
.........

+ 12

Smoking & chewing tobacco
(Thousands of lbs.) .......
18,874
Cigarettes (Thousands) ..... 35,449,153
Cigars (Thousands) ...........
516,208
Snuff (Thousands of lbs.)....
3,995

— 12

— 4

—1
1

—2

— 4

August 1949 ..... ..........
July 1949 ........... ...........
August 1948 ..... ...........
8 Months 1949 ............
8 Months 1948 ..............

+ 12

3

+ 1
0
—8
■
—35

—

2

—6

— 14
— 24
— 13

— 28
— 26

+ 5
-j- 4
+ 2
— 2-4
j—

Number of Failures
District U. S.

MONTHS

from
8 Mos.’48

128,113
236,795,886
3,620,627
26,563

—2
+ 1
—2
— 4

27
35
17
269
122

810
719
439
6,110
3,402

Total Liabilities
U. S.
District
$ 31,175,000
$ 734,000
21,804,000
907,000
283,000
21,442,000
$7,286,000
$285,614,000
132,656,000
3,007,000

Source: Dun & Bradstreet.

------------------<> < >
$ $ -----------------------

* Number of reporting firms.

DEPARTMENT STORE TRADE
Richmond

----------------- «> <> <>--------------$ 5
WHOLESALE TRADE, 183 FIRMS

LINES

% Change
8 Mos.
1949

COMMERCIAL FAILURES

— 15
— 9

Individual Cities

Auto supplies (6 )*................
Electrical goods (4)* ..........
Hardware (12)* ....................
Industrial supplies (4)* ....
Drugs and sundries (10)*..... Dry goods (11)*....................
Groceries (59)* ....................
Paper and products (5 )*---Tobacco and products (6)*....
Miscellaneous (66)* .............
District Totals (183)* ...

---------------

-<> <> <ȣ $

—1
2

— 22

— 17

+

« >

Source: Treasury Department

— 4

+ 3
+ 1

Baltimore, Md. (5 )*.................
Washington, D'. C. (6 )* ............
Richmond, Va. (6)* .................
Lynchburg, Va. (3 )*...............
Charleston, W. Va. (3 )*..........
Charlotte, N. C. (3 )*...............
Columbia, S. C. (3 )*................

<»

MANUFACTURING

% Change
from
Aug. 1949 Aug. 1948

-< > <> <»$ $
RETAIL FURNITURE SALES

Price per Cwt.
1949
1948

101,365,990
189,762,459

South Carolina ____
North Carolina .......

33,822,019

District Totals .... .$28,493,784

Net Sales
August 1949
compared with
July
August
1949
1948
— 10
— 39
— 13
— 24
+ io
— 28
— 6
— 22
— 11
— 6
— 11

Source: Deparimenet of Commerce.
* Number of reporting firms.




Aug.
%
1948 Change

+ 15
— 11
+ 19
+ 10
+ 7
+ 75
+ 3
+ 8
— 6
+ 2
+ 9

Stock
Aug. 31, 1949
compared with
July 31
Aug. 31
1949
1948
+

1

— 2
0
1
1
3
2

+ 8
+ 11
+ 6
— 20
■ 4
—

+
+
—
+

+ 11
— 4
— 3

— 1
— 2
0

Baltimore

Washington

Other Cities

District

Percentage change in August 1949 sales compared with August 1948:
— 3
— 7
— 1
— 5
— 4
Percentage change in 8 mos. sales 1949 compared with 8 mos. in 1948
— 3
— 6
+ 3
■ 4
—
— 2
Penctg. change in stocks on Aug. 31, 1949 compared with Aug. 31, 1948
— 6
— 11
— 3
— 16
— 8
Perctg. change in outstanding orders Aug. 31, 1949 from Aug. 31, 1948
■ 25
—
— 20
— 21
— 26
— 22
Perctg. changes in receivables Aug. 31, 1949 from those on Aug. 31, ’48
4- 7
0
+15
— 4
+ 7
Perctg. of current receivables as of Aug. 1, 1949 collected in August
31
48
48
44
43
Perctg. of instalment receivables as of Aug. 1 1949 collected in August
15
25
19
21
20
Maryland

Dist. of Col.

Virginia

West Va.

No. Car.

So. Car.

Percentage change in Aug. 1949 sales from Aug. 1948 sales, by States:
— 7
— 1
— 3
— 7
— 3
— 6
Percentage change in 8 months 1949 from 8 months 1948 sales:
— 6
+ 3
— 3
— 2
— 8
— 2

r 121

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