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M O N T H L Y REVIEW B U S IN E S S C O N D I T I O N S I N T H E S I X T H F E D E R A L R E S E R V E D I S T R I C T FEDERAL RESERVE BANK OF ATLANTA April 30, 1938 In the Sixth Federal Reserve District retail trade increased in March by 2.4 per cent less than the seasonal amount, but wholesale trade increased somewhat more than seasonally. Increased industrial activity is indicated by increases in residential and other construction contracts awarded, in cotton consumption and in pig iron and coal output in Ala bama. Coal production in Tennessee declined from Feb ruary, and all of the foregoing series are lower than in March last year. T rade March sales by 49 reporting retail firms were 15.7 per cent larger than in February, but 11.5 per cent less than in March, 1937. The adjusted sales index, which makes allowance for the number of business days in each month, the usual seasonal change, and the varying date of Easter, declined from 111.9 per cent of the 1923-1925 aver age for February to 109.2 per cent for March. The later date of Easter this year accounts for somewhat more than half of the decrease compared with March, 1937. Prelimi nary figures for the first three weeks of April, which in cluded Easter business this year but not last, show an in crease of 14.1 per cent over that period a year ago. Inven tories at the close of March were 7.4 per cent larger than a month earlier, an increase somewhat larger than seasonal. Wholesale trade in this District, according to figures re ported to the United States Department of Commerce by 100 firms, increased further in March by 13.7 per cent, but was 16.2 per cent less than a year ago. First quarter sales were 13.0 per cent less than in that part of 1937. Stocks reported by 47 firms declined slightly in March and were 8.7 per cent smaller than for March last year. C O N D IT IO N O F 22 M EM BER BAN KS IN S E L E C T E D C IT IE S (In Thousands of D o llars) Lo an s a n d Investm ents........................... Lo an s— T o ta l............................................... C om m ercial, In du strial and a g ricu ltu ra l loan s : O n S e c u ritie s........................................... O therw ise secu red and u nsecured. O pen m arket p a p e r............................... Lo an s to brokers a n d d e alers in se cu ritie s......................................... O ther lo an s lor pu rch asin g or carry in g se cu ritie s....................... R e a l estate lo a n s ....................................... Lo an s to b a n k s ............................................ O ther Lo an s : O n se cu ritie s........................................... O therw ise secu red a n d u nsecured. Investm ents— T o ta l..................................... U. S. direct ob lig atio n s......................... O bligations gu aranteed, b y U . S . .. O ther se cu rities....................................... R eserve w ith F. R. B a n k ........................... C a s h in v a u lt............................................... B a lan ce s w ith domestic b a n k s .............. Dem and deposits— ad ju ste d ................... Time dep osits............................................... U. S. Governm ent dep osits..................... Deposits of domestic b a n k s .................... Borrow ings : From F . R. B a n k .............. From others....................... ’ C o m p a r a b le f ig u r e s n ot a v a il a b le . A pril 13 1938 C h a n g e From : M ar. 16,1938 Apr. 14,1937 $551,837 282,536 + 573 — 4,399 — 19,409 + 10,011 11,741 141,676 3,414 + 541 — 3,075 — 451 * * — 1,435 5,798 — 808 — 1,677 14,981 27,773 2,344 — — + 242 273 497 * + 1,309 + 876 26,276 48,533 269,301 . 160,915 33,274 75,112 . 105,600 11,535 122,319 324,415 181,410 23,396 203,136 181 61 + — + + + — — + — — — + — + 477 1,065 4,972 4,468 1,310 806 377 1,118 6,824 3,417 550 534 3,760 75 * * — 29,420 — 23,424 — 3,548 — 3,448 + 8,376 — 792 — 4,263 — 12,495 + 3,294 + 13,176 — 21,582 + 181 + 61 B anking There was a further small increase in total loans and investments at 22 weekly reporting member banks in leading cities of the District in the four weeks end ing April 13. Total loans have continued to decline and on April 13 were 15.7 millions less than at the peak on Decem ber 22, and the smallest since October 20, and holdings of investment securities have increased further to the largest total since the middle of December. Loans on April 13 were 10 millions of dollars larger than a year earlier, but invest ments were 29.4 millions less. Between March 16 and April 13 loans to banks increased, but loans for commercial, in dustrial and agricultural purposes declined 2.5 millions and other classes of loans declined in smaller amounts. The recent increase in investments has been in direct obligations of the United States and in those guaranteed by the United States, offset by a small decline in other securities. Demand deposits-adjusted have declined somewhat since March 16, when they were at the highest level since October, and time deposits have also declined somewhat further in early April and were less than they have been since August. Deposits of other banks, and balances maintained with cor respondent banks, declined in the latter part of March and increased somewhat in the first two weeks of April, but con tinue less than a year ago. At the Federal Reserve Bank of Atlanta discounts for member banks increased in the last half of March but de clined in the first two weeks of April. With the single ex ception of March 2, discounts on April 13 were the smallest for any Wednesday since June 30 last year. This bank’s participation in the System’s holdings of United States secur ities increased nearly 4 millions of dollars in early April, and total bills and securities held on April 13 were about 2.3 millions larger than a year ago. There have recently been declines in reserves, Federal Reserve note circulation, and Government deposits. Member bank reserve deposits, however, rose on April 6 to a new record level, and declined about 2.5 millions the following week. Estimates based on latest available figures indicate that member bank reserve deposits on April 13, amounting to $187,661,000, were nearly 36 millions of dollars, or 23.7 per cent, greater than legal requirements. Estimated excess reserves increased from an average of 29.7 millions in the last half of Febru ary to about 37 millions in the first half of March, but de clined in the last half of March to 29.9 millions, or 19.7 per cent of legal requirements. A griculture Following unusually warm and dry weather during most of February and March, there were beneficial rains in the trucking areas of the southeastF E D E R A L R E S E R V E BAN K O F ATLAN TA (In Thousands oi D ollars) A p ril 13 C h a n g e From : ________________________________________________________ 1938 M ar.16,1938 Apr.14,1937 B ills D iscounted................................................$ 940 B ills Bought in O pen M arket....................... 19 In d u strial A d v a n ce s....................................... 121 United States S e c u ritie s................................. 111,416 Total B ills a n d S e c u ritie s........................... 112,496 Total R e se rv e s.................................................... 240,661 Member Bank Reserve A ccount.................. 187,661 U. S. Treasu rer G e n e ra l A ccou nt............... 2,726 F . R. Note C ircu la tio n ..................................... 149,501 — 28 + 858 ....................— 88 — 1 — 210 + 3,955 + 1,732 + 3,926 4- 2,292 — 12,417 — 24,131 + 3,452 +17,448 — 8,393 — 6,041 — 2,567 — 34,997 B u s in e s s 2 d e b it s t o C o n d it io n s in t h e S ix t h in d iv id u a l a c c o u n t s (In Th ou sand s of D o llars) M arch F e b ru a ry M arch ________________________________________________1938__________________1938__________________1937 ALABAM A Birm ingham ..................................... $76,988 D o than ................................................ 3,285 M ob ile................................................ 35,962 M ontgom ery................................... 20,045 F L O R ID A Ja ck so n v ille ..................................... 77,967 M iam i.................................................. 49,418 P e n sa co la ......................................... 7,636 T a m p a ................................................ 29,445 G E O R G IA A lb a n y ................................................ 5,284 A tla n ta ............................................... 200,557 A u g u sta ............................................ 15,743 B ru n sw ick ....................................... 2,766 C o lu m b u s......................................... 12,717 E lb e rto n ............................................ 1,051 M aco n ......................................... .... 12,991 1,939 N e w n a n ..................................... S a v a n n a h ......................................... 27,781 V a ld o s ta ............................................ 3,434 L O U IS IA N A New O rle a n s ................................... 225,938 M IS S IS S IP P I H attiesb u rg..................................... 4,443 Ja ck so n .............................................. 35,407 M e rid ia n ............................................ 10,659 V ic k sb u rg .......................................... 8,183 TFNNFCKFP C h a tta n o o g a ................................... K n o x v ille ........................................... N a sh v ille ........................................... 40,949 29,484 82,209 $ 71,561 2,555 32,338 19,080 94,056 3,253 38,547 25,449 66,773 43,511 6,752 26,700 85,561 57,916 9,644 32,861 4,263 170,625 13,486 2,393 10,981 962 12,059 1,414 24,201 3,069 5,525 195,263 20,044 2,963 16,003 1,353 16,348 3,034 34,956 3,885 197,524 243,562 4,040 21,064 9,129 7,155 5,538 25,704 10,480 9,461 44,783 31,794 27,706 25,778 94,037 67,000_______________________ T O T A L 26 C it ie s ......................... $1,022,281__________ $ 876,207__________ $1,107,932 ern states early in April, and excessive rainfall in most of the Sixth District excepting Florida and the eastern part of Georgia. In Alabama and southeastern Mississippi streams were flooded. Freezing temperatures in Tennessee on April 3 and 10 resulted in heavy damage to fruits and killed early strawberries, and growing crops in other states also suffered considerable damage from excessive rain and frost. Some parts of Florida, however, still need rain, and citrus groves are being irrigated. The April 1 estimate of Florida oranges is 24,450,000 boxes, an increase of 700,000 boxes over ear lier estimates, and larger by 2,050,000 boxes than produc tion in the 1936-37 season. The grapefruit estimate con tinues at 13,000,000 boxes, compared with 18,100,000 boxes last season. Trees are in good condition for the 1938-39 season. A heavy bloom has been followed by more than the usual droppage of fruit but a good crop of both oranges and grapefruit is still in prospect. The April 1 condition of peaches in the ten southern peach states averaged 71 per cent of normal, compared with 46 per cent a year ago. Growing conditions have been favorable and trees are in healthy condition. The April 1 condition of early potatoes was higher than a year ago, except in Florida where it was the same. Production of strawberries this year in the six states of the District is estimated at 3,752,000 crates, an increase of 17.3 per cent over the 1937 crop. Increased production of winter wheat in Georgia and Alabama was more than offset by a decrease in Tennessee, and the total for the three states was 8.4 per cent less than in 1937. Stocks of wheat on farms on April 1 were 48 per cent larger than a year ago, supplies of corn were 29.8 per cent larger, and stocks of oats were 16.7 per cent larger. Fertilizer tag sales more than doubled from February to March, but were 17.8 per cent less than in March last year. Tag sales in this District usually reach their peak in March. Estimates of cash farm income declined further in Feb ruary. Receipts from the sale of crops and livestock were 12.1 per cent less than a year earlier, and Government pay ments were nearly 70 per cent smaller. The ten-market average of spot cotton prices increased tofor8.95 cents on April 14 and 22, the highest since March 11 Digitized FRASER F ed er a l R eser v e D is t r ic t and higher than the monthly averages since August, accord ing to the weekly statement of the Bureau of Agricultural Economics. Sales of cotton in the five business days of the weeks were larger than in the previous week or in the corre sponding week a year ago, both of which had six business days. Prices of farm products generally, according to the index of the Bureau of Labor Statistics, continued to decline through April 9, but increased 1.2 per cent by April 16, when they were 25.4 per cent lower than at that time last year. In d u stry After declining each month from September through January, number oif workers and the amount of a week’s payroll increased in February, accord ing to figures reported to the United States Bureau of Labor Statistics by 5,524 firms in the six states of this District The increase in payrolls was larger than that which oc curred in February last year, but the increase in number of workers was smaller. Both employment and payrolls were less than a year ago. The value of construction contracts awarded in the Sixth District increased substantially in March, but building per mits declined. There were increases from February to March in both residential and non-residential awards, but in both classes the March totals were below those a year ago. First quarter totals for 1938 show declines of 28.7 per cent in total value of contracts awarded, 19.9 per cent in residen tial contracts, and 33.0 per cent in all others, compared with the first three months in 1937. The total value of building permits issued at twenty reporting cities declined 13.6 per cent from February to March, and was 15.1 per cent less than a year ago. For the first quarter of 1938 permits were nearly 7 per cent less than in that part of 1937 and 1936. Of the twenty reporting cities, twelve reported increases from February to March. Press reports continue to indi cate an unsatisfactory demand for lumber, and figures re ported weekly to the Southern Pine Association indicate that in March orders averaged 6.6 per cent, shipments 7.7 per cent, and production 17.2 per cent, less than a year earlier. Daily average consumption of cotton by mills in this District averaged 4.2 per cent larger in March than in Feb ruary, but was 38.6 per cent less than in March, 1937. In the eight months of the current season, August through March, consumption has been 26.1 per cent less than in that part of the previous season. Operations at cotton seed oil mills declined about 6 per cent in March, but were 43 per cent greater than a year ago. Coal production increased in Alabama but declined in Tennessee in March, and in the two states combined was about 35 per cent less than in March last year. Pig iron production in Alabama, on a daily average basis, increased 7 .4 per cent in March, but was 25.5 per cent less than a year ago. First quarter production in Alabama was 27.2 per cent less than in that period last year, while in the United States it was 56.8 per cent smaller. Twelve Alabama fur naces were active on April 1, a reduction of one since March 1 , and compared with sixteen active a year ago. Press re ports indicate an improved demand for heavy steel prod ucts, but buying of wire products and sheets has recently declined. There was a further reduction in the production of electric power in the six states of this District in Febru ary, and a decrease of 2.1 per cent compared with February last year. Total receipts of turpentine at the three naval stores markets in the year ending March 31 increased slightly over the previous year, but receipts of rosin declined and were the smallest in eighteen years. B u s in e s s C o n d it io n s in t h e S IX T H D IS T R IC T B U SIN E SS S T A T IS T IC S STO CKS SA L E S C o lle c Jan.-Mar. tion Mar. 1938 Incl. Com pared Com pared Ratio Mar. 1938 Com pared M arch w ith with w ith 1938 Y e a r Ago Mar. 1937 _____________________________ Feb. 1938 Mar. 1937 R E T A IL TRAD E A tlan ta ............................ B irm ingham .................. C h a tta n o o g a ................ M ontgomery.................. N a sh v ille ........................ New O r le a n s ................ O t h e r C itie s ................... D IS T R IC T (49 firm s). . . . W H O L E S A L E TR A D E G ro c e rie s ....................... D ry G o o d s..................... H a rd w a re ....................... F u rn itu re ....................... Electrical S u p p lie s. . . D ru g s............................. . T O T A L ....................... +16,9 +23.1 +15.1 + 3.7 +19-3 + 11.2 +15.3 +15.7 C O M M ER C IA L FA IL U R E S — D IST R IC T Number (A ctu a l)........ L ia b ilitie s ....................... $ Feb. 1938 — 6.2 — 3.8 — 3.8 28.6 32.8 30.1 27.6 33.6 36.2 31.9 — 16.9 — 24.7 — 3.9 96.2 37.0 46.4 — 19i3 — 0.9 8.7 84.0 79.0 56.3 (000 Omitted) Mar. Jan.-M arch Incl. 1937 1938 1937 90 914 38 414 60 460 $ $ + 0.9 + 1.4 — 10.3 — 15.7 — 9.7 — 18.4 — 16.4 — 15.4 — 23.6 — 2.9 -13.0 +13.1 — 12.0 +13.8 — 16.3 +10.3 — 18.9 +15.6 — 15.3 +16.4 — 31.1 +11-1________— 2.8 +13.7 — 16.2 Mar. 1938 — 1.0 — 4.0 — 9.2 — 14.9 — 15.9 — 5.1 + 5.0 — 5.4 — 4.1 —-13,3 — 13.2 — 18.1 — 23.2 — 15.3 — 4.9 — 11.2 — 11.5 S ix t h F ed er a l R eser v e D is t r ic t S IX T H D IS T R IC T B U SIN ESS IN D E X E S (1923-1925=100 except a s noted) Mar. 1938 Feb . 1938 M ar. 1937 100.5 181.1 93.7 69.6 85.9 86.0 98.5 175.7 86.4 113.5 206.9 106.6 85.0 101.5 87.1 109.2 194.7 98.6 78.2 95.4 95.6 111.9 206.7 96.0 73.1 117.5 72.5 65.3 56.3 61.8 68.4 111.9 66.7 60.8 52.4 58.6 76.1 118.3 . 71.0 115.2 71.1 61.6 55.2 59.4 69.8 116.6 69.5 62.7 55.2 58.6 73.9 116.0 67.3 60.8 65.6 63.4 Fu rn itu re ............................................................ D ru g s.................................................................. . . . 74.7 54.2 58.7 78.4 66.9 127.3 65.7 47.9 51.6 71.1 57.9 114.6 93.8 63.8 78.6 103.0 94.0 106.1 45.0 30.9 30.6 31.0 47.4 26.2 41.1 44.5 34.4 55.0 60.1 51.5 26.0 48.2 45.2 82.2 153.6 81.5 49.2 27.1 17.9 70.0 62.5 36.6 62.3 R E T A IL S A LE S * U nadjusted D IS T R IC T (28 firm s)..................................... . . . Birm ingham ...................................................... . . . C h a tta n o o g a .................................................... . .. ... N ew O r le a n s .................................................... . . . R E T A IL S A L E S * Adjusted D IS T R IC T (28 firm s)..................................... B irm ingham ...................................................... C h a tta n o o g a .................................................... N a sh v ille ............................................................ N ew O rle a n s .................................................... . . . R E A T IL S T O C K S U nadjusted D IS T R IC T (24 firm s)..................................... A tla n ta ................................................................ Birm ingham ...................................................... . , C h a tta n o o g a .................................................... . . . .. N ew O r le a n s .................................................... . . . R E T A IL S T O C K S Adjusted D IS T R IC T (24 firm s)..................................... Birm ingham ...................................................... C h a tta n o o g a .................................................... New O rle a n s .................................................... C O N TR A C TS A W A R D ED — D IS T R IC T ...................................$ R e sid e n tial............................... All O th e rs................................. A la b a m a ................................... F lo rid a ....................................... G e o rg ia ..................................... L o u is ia n a ................................... M ississip p i............................... T e n n e sse e ................................. 10,828 ----4,298 6,530 2,166 3,801 1,470 2,584 858 1,907 15,795 6,329 9,466 2,216 4,795 3,247 3,936 989 3,078 B U ILD IN G PERM ITS— 20 C I T I E S ................................... $ A tla n ta ....................................... Birm ingham ............................. Jack so nville............................. N a sh v ille ................................... New O rle a n s ........................... 15 Other C it ie s ....................... 4,703 $ 277 157 751 195 648 2,675 P IG IRO N P R O D U C TIO N —Tons A la b a m a ................................... 5,444 391 218 2,569 125 445 1,696 138 164 C O A L PR O D U C TIO N — Tons A la b a m a ................................... 1,032 T e n n e sse e ................................. 300 970r 372r Mar. 1938 Feb. 1938 $ 19,287 8,429 10,859 1,190 6,985 3,011 5,171 2,962 4,516 $ 38,002 14,151 23,851 6,070 11,907 6,642 8,684 2,832 10,046 $ 53,284 17,666 35,618 4,115 25,203 7,539 8,529 6,440 10,287 $ 5,541 419 266 576 397 472 3,412 $ 13,078 903 779 3,633 402 1,370 5,991 $ 14,017 1,045 1,028 1,422 639 936 8,948 221 456 626 1,448 597 2,952 1,022 3,837 1,548 3 W H O L E S A L E S A L E S ......................................... G ro c e rie s.......................................................... D ry G o o d s......................................................... C O N TR A C TS A W A R D ED — D IS T R IC T R e sid e n tial................................................... . 48.7 62.6 51.3 55.5 L o u is ia n a .......................................................... M ississip p i........................................................ T e n n e sse e .......................................................... 68.1 81.1 83.8 86.2 95.4 95.2 22.1 115.8 209.0 106.6 89.5 105.7 90.7 68.6 64.4 66.9 65.9 B U ILD IN G PERM ITS— 20 C it ie s ................... A tla n ta ................................................................ Birm ingham ................................................... Ja ckso n v ille ...................................................... N a sh v ille ............................................................ . . New O r le a n s .................................................... 15 Other C it ie s ............................................... 91.3 30.8 50.3 48.8 48.4 25.3 14.7 312.2 19.7 34.6 31.0 P IG IRO N P R O D U C TIO N — ALABAM A* 69.5 64.7 93.3 143.9 109.4 133.4 121.0 116.1 131.8 107.7 128.0 197.1 231.0 184.6 177.7 Feb . 1938 Jan. 1938 Feb. 1937 131.0 128.0 135.8 122.3 111.5 117.3 127.9 132.1 117.8 135.9 106.7 119.4 127.3 122.2 152.8 126.3 147.8 122.7 117.7 136.1 141.0 188.5 99.6 160.4 149.5 152.0 144.0 159.8 183.2 90.7 159.6 147.1 137.6 141.3 154.7 228.0 97.0 191.3 144.1 163.9 171.1 181.6 310.8 477.6 191.8 446.7 104.8 204.0 278.9 254.7 305.7 281.8 451.5 210.4 435.0 102.9 191.1 267.7 269.2 266.0 316.6 415.7 225.7 511.8 41.8 17.9 10.6 (000 Omitted) Aug. 1 to Mar. 31 Incl. 1937-38 1936-37 M ar. 1937 C O TT O N C O N SU M PTIO N — B a le s A la b a m a ................................... . G e o rg ia ..................................... T e n n e sse e ................................. Total 3 S ta te s ....................... 52 89 14 155 12 132 83 151 18 252 411 770 107 1,288 574 1,040 128 1,742 C O TT O N S E E D C R U SH ED — T o n s*........................................... 210 224 224 1,949 1,667 F E R T IL IZ E R T A G S A L E S — Tons 719 354 Total 6 Sta te s........................... ‘ G eo rg ia, A labam a, Lo uisiana and M ississippi. 874 1,607 1,772 42 78 Feb. 1938 Jan. 1938 (000 Omitted) Feb. 1937 Jan.-Feb. Incl. 1938 1937 C O TT O N C O N SU M PTIO N — 3 ST A TES* G e o rg ia .............................................................. . . . ... EM PLO YM EN T— (Av. for 1932=100) A la b a m a ............................................................ M ississip p i........................................................ . . . .. Six S ta te s...................................................... . . . P A Y R O L LS— (Av. for 1932=100) FARM IN C O M E - S ix States*. $ A la b a m a ................................... F lo rid a ....................................... G e o rg ia ..................................... L o u is ia n a ................................... M ississip p i............................... T e n n e sse e ................................. E L E C T R IC PO W ER P RO D U C TIO N — kw Hours A la b a m a ................................... F lo rid a ....................................... G e o rg ia ..................................... L o u is ia n a ................................. M ississip p i............................... Te n n e sse e ................................. Total Six S ta te s.................. By W ater P o w e r..................... By F u e ls ................................... 48,254 6,505 14,690 5,154 4,024 9,744 8,137 $ 60,006 6,294 10,616 6,255 8,489 12,462 15,890 224,287 87,715 104,090 107,442 6,133 115,579 645,246 309,743 335,503 225,005 91,811 126,409 115,833 6,678 119,899 685,635 362,433 323,202 $108,260 12,799 25,306 11,409 12,513 22,206 24,027 $129,179 16,118 28,717 20,494 13,825 22,929 27,096 M ississip p i........................................................ T e n n e sse e .......................................................... Six S ta te s....................................................... .. E L E C T R IC P O W E R P R O D U C TIO N * * Includes Government benefit payments, Digitized rfor = FRASER revised. $ 60,931 9,225 15,775 9,974 6,069 10,042 9,846 228,460 449,292 452,597 76,347 179,526 156,288 122,507 230,499 286,780 123,098 223,275 238,823 5,160 12,811 10,360 103,482 210,985 235,478 659,054 1,330,881 1,355,833 421,070 672,176 880,733 237,984 658,705 475,100 L o u is ia n a ........................................................... M ississip p i........................................................ , . T e n n e sse e ................................... ................... Six S ta te s....................................................... By W ater P o w er......................................... .. 88.0 182.6 284.9 346.3 216.8 * In d e x e s of re t a il s a le s , e le c t r ic p o w e r a n d p ig iro n p ro d u c tio n a n d of cotton co n su m p tio n a r e o n a d a ily a v e r a g e b a s is . B u s in e s s 4 C o n d it io n s in t h e INDUSTRIAL PRODUCTION S ix t h F ed er a l R eser v e D is t r ic t N a t i o n a l S u m m a r y o f B u s i n e s s C o n d itio n s P repared by the Board of Governors of the Fed eral Reserve System . M A R C H a n d t h e f ir s t t h r e e w e e k s o f A p r i l in d u s t r ia l a c t iv it y c o n t in u e d a t a b o u t th e s a m e r a te a s in J a n u a r y a n d F e b r u a r y . D is t r ib u t io n o f c o m m o d it ie s to c o n s u m e r s s h o w e d le s s t h a n t h e u s u a l s e a s o n a l in c r e a s e a n d w h o le s a le c o m m o d it y p r ic e s d e c lin e d f u r t h e r . I N P roduction In d e x o f p h y sic a l vo lu m e o f pro d u ctio n , a d ju ste d f o r sea so n a l v a ria t io n , 1923-1925 a v e r a g e = 100. B y m o n th s, J a n u a r y , 1934, to M a r c h , 1938. WHOLESALE PRICES V o lu m e o f in d u s t r ia l p r o d u c t io n s h o w e d lit t le c h a n g e f r o m F e b r u a r y to M a r c h a n d t h e B o a r d ’s in d e x , w h ic h is a d ju s t e d f o r th e n u m b e r o f w o r k in g d a y s a n d f o r u s u a l s e a s o n a l v a r ia t io n s , r e m a in e d a t 7 9 p e r c e n t o f t h e 1 9 2 3 -1 9 2 5 a v e r a g e . I n th e s te e l in d u s t r y , o u tp u t o f in g o ts a v e r a g e d 3 3 p e r c e n t o f c a p a c it y in M a r c h a n d c o n t in u e d a t a b o u t t h is le v e l in t h e f ir s t t h r e e w e e k s o f A p r i l. S h ip m e n t s o f f in is h e d s t e e l in M a r c h , a s in o t h e r r e c e n t m o n t h s , w e r e a t a s o m e w h a t h ig h e r r a t e th a n o u tp u t . A u t o m o b ile p r o d u c t io n , w h ic h u s u a lly e x p a n d s s h a r p ly a t t h is t im e o f th e y e a r , s h o w e d lit t le c h a n g e f r o m t h e lo w le v e l o f J a n u a r y a n d F e b r u a r y , a n d o u t p u t o f t ir e s a n d p la t e g la s s lik e w is e r e m a in e d a t a lo w r a t e . I n t h e lu m b e r a n d c e m e n t in d u s t r ie s t h e r e w e r e c o n s id e r a b le in c r e a s e s in o u t p u t in M a r c h . A t c o t t o n a n d s ilk t e x t ile m ills a n d s h o e f a c t o r ie s a c t iv it y r o s e s o m e w h a t , w h ile p r o d u c t io n a t w o o le n m ills d e c lin e d f o llo w in g a r is e in F e b r u a r y . D e c lin e s w e r e r e p o r t e d a ls o f o r m e a t p a c k in g a n d s u g a r r e f in in g . A t m in e s , w h e r e p r o d u c t io n d e c r e a s e d g e n e r a lly in F e b r u a r y , o u tp u t o f b it u m in o u s co e d a n d n o n fe r r o u s m e t a ls c o n t in u e d to d e c lin e in M a r c h , w h ile p r o d u c t io n o f a n t h r a c it e a n d c r u d e p e t r o le u m in c r e a s e d so m e w h a t. V a lu e o f c o n s t r u c t io n c o n t r a c t s a w a r d e d s h o w e d a c o n s id e r a b le in c r e a s e in M a r c h , a c c o r d in g t o f ig u r e s o f t h e F . W . D o d g e C o r p o r a t io n . A w a r d s f o r r e s i d e n t ia l w o r k , w h ic h h a d a d v a n c e d m o d e r a t e ly in F e b r u a r y , in c r e a s e d s h a r p ly in M a r c h b u t w e re s t ill 1 2 p e r c e n t le s s t h a n in M a r c h , 1 9 3 7 . C o n t r a c t s f o r o t h e r p r iv a t e w o r k a ls o in c r e a s e d i n M a r c h , b u t r e m a in e d c o n s id e r a b ly s m a lle r t h a n a y e a r a g o . T h e v a lu e o f p u b lic p r o j e c t s s h o w e d a n in c r e a s e a n d w a s h ig h e r t h a n la s t y e a r . E m plo y m en t In d e x e s co m p ile d b y U . S . B u r e a u o f L a b o r S ta tistic s, 1926 = 100. B y w eeks, 1934 to w eek e n d in g A p r i l 16, 1938. MONEY RATES IN NEW YORK CITY F a c t o r y e m p lo y m e n t d e c lin e d s o m e w h a t a n d p a y r o lls s h o w e d lit t le c h a n g e f r o m th e m id d le o f F e b r u a r y to th e m id d le o f M a r c h , a lt h o u g h in c r e a s e s a r e u s u a l a t t h is s e a s o n . T h e n u m b e r e m p lo y e d in t h e m a c h in e r y in d u s t r ie s d e c r e a s e d c o n s id e r a b ly f u r t h e r a n d a t w o o le n m ills t h e r e w a s a ls o a s u b s t a n t ia l d e c lin e , w h ile m o s t o t h e r m a n u f a c t u r in g in d u s t r ie s s h o w e d m o d e r a t e d e c lin e s o r lit t le c h a n g e . E m p lo y m e n t o n th e r a ilr o a d s a n d in th e p u b lic u t ilit ie s d e c lin e d s o m e w h a t f u r t h e r in M a r c h , w h ile in o th e r n o n m a n u fa c t u r in g lin e s th e r e w a s lit t le c h a n g e in th e n u m b e r e m p lo y e d . D istr ib u tio n S a le s a t v a r ie t y s t o r e s a n d b y m a il o r d e r h o u s e s in c r e a s e d s e a s o n a lly in M a r c h , w h ile s a le s a t d e p a r t m e n t s t o r e s s h o w e d le s s t h a n t h e u s u a l r is e . The B o a r d ’s s e a s o n a lly a d j u s t e d in d e x o f d e p a r t m e n t s t o r e s a le s d e c lin e d f r o m 8 8 in F e b r u a r y t o 8 6 i n M a r c h a n d f ig u r e s f o r t h e f ir s t t h r e e w e e k s o f A p r i l in d ic a t e s o m e f u r t h e r d e c lin e . F r e ig h t - c a r lo a d in g s s h o w e d lit t le c h a n g e f r o m F e b r u a r y to M a r c h , a lt h o u g h a r is e is u s u a l a t t h is t im e o f t h e y e a r . S h ip m e n t s o f c o a l d e c lin e d s u b s t a n t ia lly a n d m is c e lla n e o u s lo a d in g s in c r e a s e d b y le s s t h a n t h e u s u a l se a so n a l a m o u n t. C ommodity P rices D is c o u n t ra te o f F e d e ra l R e s e rv e B a n k ; w e e k ly a v e r a g e s o f d a ily y ie ld s on 3- to 5 -y e ar T r e a s u r y n o te s a n d on T r e a s u r y b o n d s c a lla b le a ft e r 8 y e a rs, a n d w e e k ly a v e r a g e o f d a ily d e a le rs’ q u o ta tio n s o n 90 -d ay T r e a s u r y b ills o r ra te o n n e w b ills offered in w eek. F o r w ee ks e n d in g J a n u a r y 6, 1934 to A p r i l 23, 1938. W h o le s a le c o m m o d it y p r ic e s g e n e r a lly d e c lin e d f r o m t h e m id d le o f M a r c h to th e t h ir d w e e k o f A p r i l. T h e r e w e r e f u r t h e r d e c r e a s e s in p r ic e s o f a n u m b e r o f r a w a n d s e m i- f in is h e d in d u s t r ia l c o m m o d it ie s , a n d p r ic e s o f s o m e le a d in g a g r ic u l t u r a l p r o d u c t s a ls o d e c lin e d , r e f le c t in g in p a r t s e a s o n a l in flu e n c e s . I n t h e m id d le o f A p r i l p r ic e s o f s o m e in d u s t r ia l m a t e r ia ls a d v a n c e d s lig h t ly f r o m t h e lo w s re a c h e d e a r lie r in th e m o n th . Ba n k C red it D u r i n g M a r c h a n d t h e f ir s t t h r e e w e e k s o f A p r i l , t o t a l lo a n s a t r e p o r t in g m e m b e r b a n k s in 1 0 1 le a d in g c it ie s d e c lin e d f u r t h e r , r e fle c t in g a s u b s t a n t ia l r e d u c t io n in lo a n s to b r o k e r s a n d d e a le r s in s e c u r it ie s a n d a ls o d e c lin e s i n c o m m e r * c ia l lo a n s . H o ld in g s o f in v e s t m e n t s s h o w e d lit t le n e t c h a n g e , d e c lin in g in M a r c h a n d in c r e a s in g in A p r il. A s a p a r t o f t h e G o v e r n m e n t ’ s p r o g r a m f o r e n c o u r a g e m e n t o f b u s in e s s r e c o v e ry , th e B o a r d o f G o v e r n o r s r e d u c e d re s e rv e r e q u ir e m e n ts o f m e m b e r b a n k s b y a b o u t $ 7 5 0 ,0 0 0 ,0 0 0 , e ff e c t iv e A p r i l 1 6 , a n d e x c e s s r e s e r v e s c o r r e s p o n d in g ly i n c r e a s e d . A s a p a r t o f t h e s a m e p r o g r a m t h e T r e a s u r y d is c o n t in u e d t h e in a c t iv e g o ld a c c o u n t a n d d e p o s it e d a b o u t $ 1 ,4 0 0 ,0 0 0 ,0 0 0 o f g o ld c e r t if ic a t e s w i t h t h e F e d e r a l R e s e r v e b a n k s . A d d it io n s to e x c e s s re s e rv e s f r o m t h is s o u r c e w ill o c c u r a s th e T r e a s u r y d r a w s u p o n t h e s e d e p o s it s t o m e e t c u r r e n t e x p e n d it u r e s a n d t h e r e t ir e m e n t o f T r e a s u r y b ills . M oney R ates 1934 1936 1936 1937 1938 W e d n e s d a y fig u re s o f to ta l m e m b e r b a n k re serve b a la n c e s a t F e d e ra l R e se rv e B a n k s , w it h e stim a te s o f requ ired a n d excess reserves, J a n u a r y 3, 1934 to A p r i l 20, 1938. and B ond Y ield s Y i e l d s o n T r e a s u r y b o n d s d e c l in e d f r o m a l e v e l o f 2 .5 0 p e r c e n t i n t h e f ir s t h a l f o f A p r i l t o 2 .3 2 p e r c e n t o n A p r i l 2 2 . T h e a v e r a g e y i e l d o n 3 - 5 y e a r T r e a s u r y n o t e s d e c l in e d t o a n e w lo w o f 0 .8 1 p e r c e n t , w h i c h c o m p a r e s w i t h t h e p r e v i o u s lo w o f 0 .9 2 p e r c e n t i n D e c e m b e r , 1 9 3 6 . T h e r a t e o n t h r e e - m o n t h T r e a s u r y b i l l s d e c lin e d t o v ir t u a ll y a n o - y ie ld b a s is . O t h e r s h o r t - t e r m o p e n - m a r k e t m o n e y r a t e s r e m a in e d u n c h a n g e d i n t h e f ir s t t h r e e w e e k s o f A p r i l .
@FedFRASER