The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
M O N T H L Y REVIEW B U S IN E S S F E D E R A L R E S E R V E C O N B A N K O F D I T I O N S I N T H E S I X T H E R A L R E S E R V E D I S T R I C T A T L A N T A M a rch In February retail distribution in the Sixth District in creased somewhat more than usual at that time, and there were also increases in wholesale trade, in residential con tracts awarded, and in building permits. Loans at weekly reporting member banks declined somewhat but investment holdings of securities increased. T rade The volume of retail trade in the Sixth District increased by more than the seasonal amount from January to February. Wholesale trade also increased in February, although in each of the past five years there has been a decrease from January to February. Business fail ures, both number and liabilities, declined in February, but were substantially larger than a year ago. February sales by 49 reporting retail firms increased 9.3 per cent over January, and were 1.3 per cent larger in dollar value than in February, 1937. In the first two months of 1938 sales have been 1.0 per cent larger than in that period last year. The adjusted index, which makes allow ance for the number of business days in each month and for the usual seasonal change, rose 2.5 per cent from 109.2 per cent of the 1923-1925 average for January to 111.9 per cent for February. Preliminary figures for the first two weeks in March, however, indicate a decrease of 7.5 per cent compared with that period last year, reflecting the effects of the later date of Easter this year. Inventories at the end of February were 7.6 per cent larger than a month earlier, but were 6.4 per cent smaller than a year ago. The collection ratio for February declined slightly to 30.7 per cent, which compares with 35.2 per cent for February, 1937. Wholesale trade in this District, according to figures re ported to the United States Department of Commerce by 96 firms, increased 3.1 per cent in February, but was 8.8 per cent less than a year earlier. Sales of dry goods, shoes, electrical goods, and furniture increased over January, but 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 Th ousand s ol D o llars) M arch 16 1938 $551,264 Lo an s and Investm ents............................. 286,935 Lo an s— T o ta l.................................................. Com m ercial, industrial and a g ricu ltu ral loans : 11,200 O n S e cu ritie s............................................. O therw ise secured and u n secu red .. .. 144,751 3,865 O pen market p a p e r................................. .. Lo an s to brokers and dealers 6,606 in se cu rities........................................... . . O ther lo a n s for pu rch asin g or carryin g se cu ritie s......................... 15,223 Real estate lo a n s ......................................... ., 28,046 Lo an s to b a n k s ............................................. 1,847 O ther Lo an s : O n S e c u ritie s.............................................. .. 25,799 O therw ise secu red a n d u n s e c u re d .. .. 49,598 Investm ents— T o ta l..................................... .. 264,329 U i S. direct ob lig atio n s......................... ... 156,447 O bligatio ns gu aranteed b y U. S ........ .. 31,964 O ther se cu rities....................................... .. 75,918 Reserve w ith F . R. B a n k ........................... .. 105,977 C a sh in v a u lt................................................. .. 10,417 B alan ces w ith domestic b a n k s............... .. 129,143 Dem and deposits— a d ju sted .................... . •. 327,832 Time dep osits............................................... ... 181,960 U. S. Governm ent dep osits....................... . 22,862 Deposits of domestic b a n k s ..................... .. 206,896 Borrow ings : From F. R. B a n k .............. 106 From o thers....................... 61 C o m p a r a b le fig u re s not a v a ila b le . Digitized •for FRASER F E D C h a n g e From : Feb . 16,1938 1M ar.17,1937 — 27,825 + 1,523 + 23,064 — 2,514 * * 992 — 238 — 3,915 + 40 — + 977 — 1,746 + + — 321 455 353 * + 1,740 + 1,049 + 1,294 — 1,095 + 4,037 + 2,095 — 391 + 2,333 — 518 + 141 + 14,817 + 8,372 — 675 + 6,031 + 2,014 — 59 * * — 50,889 — 40,159 — 5,065 — 5,665 + 5,436 — 510 — 2,637 — 13,201 + 3,683 + 8,070 — 24,760 — 64 + 61 31, 1938 sales of groceries, drugs and hardware declined somewhat. Inventories by 48 wholesale firms increased 0.9 per cent in February, but were 4.6 per cent less than a year ago. B anking Total loans and investments at 22 weekly report ing member banks in selected cities of the Sixth District increased further in the four weeks ending March 16. As in the previous five week period, loans declined but investments increased. Estimated excess reserves of all member banks in the District averaged 2.7 millions larger in February than January, following an increase of 4.8 millions from December to January. Total loans at these 22 weekly reporting member banks fluctuated within a narrow range around 220 millions of dollars from the middle of 1935 to the middle of 1936, rose in the latter part of that year to 268 millions, and in December, 1937, to 298 millions. By March 16, however, loans had declined about 11 millions of dollars. Holdings of investment securities, after declining from 338 millions in September, 1936, to 257 millions on February 23 this year, have risen about 7 millions. The recent decline in loans has been principally in those for commercial, indus trial and agricultural purposes, and the recent decrease in investments has been in both United States securities and “Other securities.” Demand deposits-adjusted increased further in the four weeks ending March 16 by about 8.4 millions, and were 12.2 millions larger than on January 5. Time deposits have recently declined somewhat but continue larger than a year ago. Balances with correspondent banks have increased to the highest level since March 17 last year, and deposits of other banks have also increased. At the Federal Reserve Bank of Atlanta discounts for member banks and industrial advances have recently de clined, and although discounts on March 16 were larger than a year ago, holdings of purchased bills, industrial advances and of United States securities were less. Total reserves were on March 16 the largest since October 13. Member bank reserve deposits increased by March 2 to 187.7 millions, the highest on record, but declined 3.5 mil lions in the following two weeks. Estimates based on latest available figures indicate that total member bank reserve deposits at the Federal Reserve Bank of Atlanta, amounting on March 16 to $184,209,000, were about 32.6 millions of dollars, or 21.5 per cent greater than legal requirements. In the last half of February estimated excess reserves aver aged 29.7 millions, or 19.8 per cent, of legal requirements. F E D E R A L R E S E R V E BAN K O F ATLA N TA (In Th ou sand s of D o llars) C h a n g e From : M arch 16 F e b . 16,1938 Mar.17,1937 1938 B ills D iscou n ted....................................... . . . . $ 968 B ills Bought in O pen M arket............... 19 In d u strial A d v a n ce s............................... 122 U nited States S e c u ritie s......................... 107,461 Total B ills a n d S e cu ritie s................... , 108,570 Total R e se rv e s........................................... . , . , 253,078 Member Bank Reserve A ccou nt.......... 184,209 U. S. Tre a su re r G e n e ra l A c c o u n t.. . . 11,119 F. R. Note C ircu la tio n ............................. . . . . 152,068 — 93 — 2 — + + + — 95 8,299 3,185 6,516 1,967 + 729 — 89 — 227 — 2,480 — 2,067 — 9,108 + 10,129 + 10,770 — 32,574 B u s in e s s 2 C o n d it io n s D E B IT S T O IN D IV ID U A L A C C O U N T S (In Th ou sand s of D o llars) F e b ru a ry Jan u ary 1938 1938 A LABAM A B irm ing ham ..................................... $71,561 D o th an ..................................... . 2,555 M ob ile................................................ 32,338 19,080 M ontgom ery................................... F L O R ID A Ja ck so n ville ..................................... 66,773 M iam i.................................................. 43,511 P e n s a co la ......................................... 6,752 T a m p a ................................................ 26,700 G E O R G IA A lb a n y ................................................ 4,263 A tla n ta ............................................... 170,625 A u g u sta ............................................ 13,486 B ru n sw ic k ......................................... 2,393 C o lu m b u s......................................... 10,981 E lb e rto n ............................................ 962 M aco n ................................................ 12,059 N e w n a n .............................................. 1,414 S a v a n n a h .......................................... 24,201 V a ld o s ta ............................................ 3,069 LO U IS IA N A 197,524 N ew O r le a n s ................................... M ISSIS SIP P I H attiesb u rg ..................................... 4,040 Ja ck so n .............................................. 21,064 M e rid ia n ............................................ 9,129 V ic k s b u rg .......................................... 7,155 TEN N ESSEE C h a tta n o o g a ................................... 31,794 K n o x v ille ............................................ 25,778 N a sh v ille ........................................... 67,000 T O T A L 26 C I T I E S .....................$876,207 A griculture $ 88,600 3,172 37,889 20,589 in t h e F ed er a l R eser v e $ 73,866 2,892 30,905 18,931 77,782 43,198 8,200 30,632 73.580 47,897 8,068 28.581 5,187 187,828 15,084 2,641 12,246 1,018 12,534 1,587 28,348 3,408 4,614 172,383 15,739 2,410 13,208 219,969 210,389 4,347 25,461 9,121 7,400 4,826 24,354 9,398 7,020 42,513 32,702 71,159 36,933 24,266 76,112 $ 992,615 $ 934,521 1,011 2,001 13,688 28,158 3,291 D is t r ic t (000 Omitted) Intended A cre ag e 1938 F e b ru a ry 1937 Weather conditions during February were generally favorable for truck crops in the southeastern and Gulf states. There were a few days of below average temperature but damage from frost was slight. Shipments of truck crops from the early areas con tinued to increase in February and early March. No change was made in the previous estimates of 23,750,000 boxes of oranges and 13,000,000 boxes of grapefruit in Florida this season. Rainfall in February was light over most of the Florida citrus belt and some growers applied irrigation dur ing the month. Movement of early and mid-season oranges was unusually heavy. Conditions up to March 1, coupled with increased acreage, indicate an increase of about 16 per cent in the production of strawberries this year in the early states. Substantial increases are indicated in Alabama and Louisiana, a small increase in Mississippi, and a de crease in Florida. Fertilizer tag sales in the six states of this District in creased substantially from January to February, but for the seven months, August through February, were 1.8 per cent less than in that part of the previous season. Estimates of farm income declined further in January and were 12.1 per cent less than in January, 1937. Gov ernment payments were only about one-sixth as large as a year ago. Cotton prices increased from an average of 8.54 cents in January to 9.20 cents on February 25, but declined by March 18 to 8.58 cents. Prices of farm products generally, according to the index of the Bureau of Labor Statistics, declined 4.7 per cent between January 1 and February 19, but increased 2.2 per cent by March 5. Reports to the Department of Agriculture indicate that on March 1 the farmers in the six states of this District in tended to plant larger acreages than last year in corn, oats, hay, sweet potatoes, tobacco, soybeans, peanuts and cow peas, but less acreage in potatoes, barley and rice. The total for the more important crops, not including cotton S ix t h C o r n ............................. . O a ts ............................... B a rle y (T e n n e sse e ). Tam e H a y ................... Potatoes— W hite Potatoes— S w e e t____ T o b a cco ....................... Soy B e a n s................... P e an u ts....................... C o w p e a s ..................... Rice (L o u isia n a )____ T O T A L .................. 15,252 781 31 4,731 191 478 246 756 1,248 1,178 520 25,412 P lanted A creag e 1937 15,006 755 33 4,542 201 462 229 685 1,178 1,174 525 24,790 Percent Change + 1.6 + 3.4 — 5.0 + 4.2 — 5.0 + 3.5 + 7.5 + 10.4 + 5.9 + 0.3 — 1.0 + 2.5 about which no information is collected because of legisla tive prohibition, indicates an increase of 2.5 per cent over 1937. Combined totals for the six states are compared in the table. In d u stry There were further declines in both employ ment and payrolls in the six states of this Dis trict between the middle of December and the middle of January, according to figures reported to the U. S. Bureau of Labor Statistics by 4,200 firms. Number of workers was 8 per cent smaller than a year ago, and payrolls were 11.9 per cent less. Only in Louisiana were there increases in number of workers and payrolls over January, 1937. The value of construction contracts awarded in the Sixth District declined further in February, although residential contracts increased. The total value of building permits issued at twenty reporting cities increased substantially in February, and was larger than a year ago, principally be cause of a large total reported from Jacksonville which in cluded buildings and machinery for a paper mill. Value of contract awards in February was 4.8 per cent less than in January, and the smallest since August, 1935. There were increases over January, and over February, 1937, in Alabama, Florida, and Louisiana. Residential contracts in creased 22.0 per cent in February, but continued less than a year ago. For January and February combined, total con tracts were 34.7 per cent less than in that period last year, residential awards were 15.3 per cent, and other contracts 41.9 per cent, smaller. Press reports continue to reflect an unsatisfactory demand for lumber, and orders, production and shipments at mills reporting to the Southern Pine As sociation continue less than a year ago. Daily average consumption of cotton by mills in this District averaged 0.4 per cent larger in February than Jan uary, but was 39.2 per cent less than a year ago. In Feb-, ruary the rate of consumption increased 3.5 per cent in Alabama, and 4.9 per cent in Tennessee, but declined 1.9 per cent in Georgia. Operations at cotton seed oil mills in February were at about the January level and about 20 per cent above that of February last year. Coal production in Alabama and Tennessee increased only slightly in February, and continued less than a year ago. Total production of pig iron in Alabama declined 9.8 per cent in February. The daily rate, however, was about the same as for January, but 29.2 per cent less than in Febru ary, 1937. Thirteen furnaces were active on March 1, twelve on February 1, and fifteen on March 1 last year. Daily average production of electric power declined in January and was slightly less than a year ago. Receipts and stocks of turpentine and rosin declined further in February. Quo tations for rosin have been favorably affected by the loan values established by the Commodity Credit Corporation. B u s in e s s C o n d it io n s in t h e S ix t h 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 S A L E S C o lle c Jan .Feb . tion Feb . 1938 Incl. Com pared Com pared Ratio Feb . 1938 Com pared Feb . W ith W ith W ith : 1938 Y e a r Ago Feb . 1937 Jan. 1938 Feb . 1937 R E T A IL TR A D E A tla n ta ........................... Birm ingham .................. C h a tta n o o g a .............. M ontgom ery................. N a sh v ille ....................... New O rle a n s ............... Other C itie s ................. D IS T R IC T (49 F irm s ). W H O L E S A L E TR A D E G ro c e rie s.......................— 3.8 Dry G o o d s.....................+14.2 H a rd w a re ..................... — 1.6 Fu rn itu re....................... + 8 . 4 Electrical G o o d s........ +33.5 D ru g s ............................. — 2.0 T O T A L ............................. + 3.1 8.8 26.8 31.5 34.8 30.7 70.5 34.9 41.8 40.0 61.7 77.5 52.3 + 29.8 — 23.4 — 0.8 — 7.8 — 6.5 + 3.8 — 4.6 — 8.0 — 19.7 — 14.9 — 15.4 — 19.2 — 2.9 — 11.1 8.4 — 11.5 8.7 15.7 13.7 1.5 27.5 32.0 30.5 — 2.6 + 0.0 — 1.2 — 10.5 — 12.0 — 3.8 — 13.7 — 6.4 + 2.8 — 6.5 — 12.9 — 11.2 + 2.9 + 11.6 — 1.6 + 1.0 + 2.2 — 10.6 — 22.4 — 8.4 + 2.2 + 19.6 — 0.8 + 1.3 +11.5 + 5.6 + 3.3 +11.3 +19.3 +5.9 +10.1 + 9.3 (000 Omitted) Jan. 1938 Feb . 1938 60 460 C O N T R A C T S A W A R D ED — D IS T R IC T ...................................$ 10,828 4,298 R e sid e n tial............................... 6,530 A ll O th e rs................................. 2,166 A la b a m a ................................... 3,801 F lo rid a ....................................... 1,470 G e o rg ia ..................................... 2,584 L o u is ia n a ................................... 858 M ississip p i............................... 1,907 Te n n e sse e ................................. B U ILD IN G PERM ITS— 20 C I T I E S ................................. $ A tla n ta ........................................ Birm ingham ............................. Jack so n v ille ............ ................ N a s h v ille ................................... New O r le a n s ........................... 15 Other C it ie s ......................... 5,444 391 218 2,569 125 445 1,696 P IG IRO N P R O D U C TIO N — Tons A la b a m a ................................... $ 84 527 $ 11,379 3,254 7,855 1,688 3,311 1,925 2,164 985 5,061 $ 2,931 234 404 313 82 277 1,621 153 138 950 350 960 366 21 $ 251 $ 144 987 $ 52 500 $ 11,411 4,957 6,454 1,144 3,658 2,271 1,589 1,698 3,248 $ 22,207 7,822 14,385 3,854 7,112 3,395 4,748 1,843 6,968 $ 33,997 9,237 24,760 2,825 18,218 4,529 3,358 3,479 3,770 $ $ $ 4,537 300 527 359 131 282 2,937 195 1,197 471 8,375 625 622 2,882 207 722 3,316 291 1,910 716 8,476 626 762 846 242 464 5,536 Feb. 1938 Jan. 1938 Feb . 1937 132 137 1,489 224 224 186 1,739 1,521 F E R T IL IZ E R T A G S A L E S — Tom 354 200 Total 6 S ta te s ........................... ^ Georgia, A lab am a, Lo u isia n a and M ississippi. 378 888 904 Jan. 1938, Dec. 1937 (000 Omitted) Jan. 1937 S 'n it 6,255 8,489 12,462 15,890 $ 68,248 6,893 12,942 10,520 7,756 12,887 17,250 E L E C T R IC P O W ER P RO D U C TIO N — kw Hours A la b a m a ................................... 225,047 F lo rid a ....................................... 91,722 G e o rg ia ..................................... 126,409 L o u isia n a ...................................115,179 M ississip p i............................... 6,713 T en n essee................................. 119,899 Total 6 S ta te s....................... 684,969 By W ater P o w er..................... 362,433 B y F u e ls ..................................... 322,969 225,703 86,802 156,455 131,695 5,896 117,195 723,746 386,100 337,646 224,137 79,941 164,273 115,725 5,200 107,503 696,779 459,663 237,116 * In c lu d e s G o v e rn m e n t be n e fit p a y m e n ts . 95.1 173.4 95.0 87.7 79.3 73.1 111.9 206.7 96.0 108.1 204.0 105.6 95.4 95.2 R E T A IL S T O C K S U nadjusted D IS T R IC T (24 firm s)..................................... .. , .. Birm ingham ...................................................... . . . C h a tta n o o g a .................................................... . . . ., N ew O r le a n s .................................................... . . . 68.4 111.9 66.7 60.8 52.4 58.6 60.7 100.7 57.1 54.3 46.4 50.6 71.5 114.9 64.5 61.5 59.6 60.9 69.8 116.6 69.5 62.7 55.2 58.6 66.7 109.5 63.4 61.0 53.3 55.6 73.0 119.7 67.2 63.4 62.7 60.9 ., ... .,, ... 65.7 47.9 51.6 71.1 57.9 114.6 63.7 49.8 45.2 72.3 53.4 116.9 76.5 55.8 58.6 81.5 83.6 98.2 C O N T R A C T S A W A R D ED — D IS T R IC T R e sid e n tial........................................................ . . . A ll O th e r............................................................ ... ... 30.9 30.6 31.0 47.4 26.2 32.4 25.1 37.3 36.9 ... 41.1 44.5 34.4 28.9 34.4 51.1 91.3 32.5 35.3 30.6 25.0 25.2 34.1 25.3 58.6 48.4 25.3 14.7 312.2 19.7 34.6 31.0 26.1 15.1 27.3 38.1 12.9 21.5 29.6 40.3 19.4 35.6 43.6 20.7 21.9 53.6 ,.. 64.7 64.8 91.4 ... .. 116.1 131.8 107.7 128.0 115.7 127.3 109.8 122.0 191.0 222.3 180.2 168.1 Jan. 1938 Dec. 1937 Jan. 1937 132.1 117.8 135.9 122.2 106.7 119.4 127.3 145.7 123.4 142.9 123.8 112.3 127.8 135.1 149.7 123.2 144.7 119.8 118.2 134.2 138.4 183.2 90.7 159.6 147.1 137.6 141.3 154.7 215.0 97.9 177.9 150.4 145.5 156.8 171.3 222.3 94.9 188.2 139.2 159.6 168.5 175.6 281.7 451.1 210.4 432.5 103.8 191.1 267.4 269.2 265.8 282.5 426.8 260.2 494.5 90.9 186.8 282.5 286.8 277.9 280.6 393.1 273.4 434.6 80.4 171.3 272.0 341.4 195.1 86.2 .. Birm ingham ...................................................... . . . C h a tta n o o g a .................................................... N a sh v ille ............................................................ New O r le a n s .................................................... W H O L E S A L E S A L E S — T O T A L ....................... M ississip p i........................................................ P IG IRO N PR O D U C TIO N — ALABAM A* 22.1 22.8 111.0 93.3 83.1 88.1 110 EM PLO YM EN T— (Av. for 1932— 100) $ 77,338 11,029 9,363 9,889 12,582 18,429 16,046 60,006 86.3 151.4 76.2 63.2 65.2 75.9 N ew O rle a n s .................................................... . .. 490 889 359 680 93 1,132 98.5 175.7 86.4 68.1 81.1 83.8 109.2 201.9 105.8 80.0 86.9 90.4 New O rle a n s .................................................... 15 O ther C it ie s ................................................. 71 131 15 217 42 83 12 Feb . 1937 B irm ingham ...................................................... C h a tta n o o g a .................................................... C O TT O N CO N SU M PTIO N —3 S T A T E S * ... 42 78 Jan. 1938 R E T A IL S A L E S * Adjusted D IS T R IC T (28 firm s)..................................... 2,389 945 Aug. 1 to Feb . 28 Inc. 1937-38 1936-37 Feb . 1938 R E T A IL S A L E 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 .................................................... . . . Birm ingham ...................................................... Ja ck so n ville ...................................................... 12 FA RM IN C O M E*— Six States $ A la b a m a ................................... F lo r id a ....................................... G e o rg ia ..................................... L o u is ia n a ................................... M ississip p i............................... T e n n e sse e ................................. 3 SIX T H D IS T R IC T B U SIN E SS IN D E X E S (1923-1925=100 except a s noted) B U ILD IN G PERM ITS— 20 C it ie s .................... C O T T O N C O N SU M PTIO N — B a le s CO TTO N SEED CRU SH ED — T o n s* .......................................... D is t r ic t 405 (000 Omitted) A la b a m a ................................... G e o rg ia ..................................... T e n n e sse e ................................. Total 3 S ta te s....................... R eser v e R E T A IL S T O C K S Adjusted D IS T R IC T (24 firm s)..................................... C O M M E R C IA L F A IL U R E S — D IS T R IC T Number (A c t u a l)................... L ia b ilitie s ...................................$ C O A L P R O D U C TIO N — Tons A la b a m a ................................... T e n n e sse e ................................. Jan-Feb. Incl. 1938 1937 Feb. 1937 F ed er a l ... ... .., ... M ississip p i........................................................ . . . .. Six S ta te s...................................................... . . . P A Y R O L LS— (Av. for 1932=*100) ... .., .., L o u isia n a .......................................................... M ississip p i........................................................ . . , .. Six S ta te s....................................................... . . . E L E C T R IC P O W ER PRO D U C TIO N * ... ... G e o rg ia .............................................................. . . . ... M ississip p i........................................................ . . , Te n n e sse e .......................................................... Six Sta te s....................................................... ., By W ater P o w e r......................................... By F u e ls .......................................................... .. * In d e x e s of r e 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 i ly a v e r a g e o a s is . 4 B u s in e s s C o n d it io n s in t h e S ix t h F ed er a l R eser v e D is t r ic t INDUSTRIAL PRODUCTION N a t i o n a l S u m m a r y o f B u s in e s s C o n d itio n s Prep ared by the Board) of Governors of the Fe d e ra l Reserve System . O L U M E o f m a n u fa c t u r in g 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 J a n u a r y to F e b r u a r y , w h ile o u tp u t o f m in e r a ls d e c lin e d f u r t h e r . A w a r d s f o r r e s id e n t ia l b u il d i n g in c r e a s e d s o m e w h a t i n F e b r u a r y a n d r o s e c o n s id e r a b ly i n t h e f ir s t h a l f of M a rch . V P r o d u c t io n Index of physical volume of production, adjusted for sea sonal variation , 1923-1925 average = 100. B y months, Ja n u a ry , 1934, to Fe b ru a ry , 1938. FREIGHT-CAR LOADINGS T h e 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 in d u s t r ia l p r o d u c t io n , w h ic h in c lu d e s b o t h m a n u fa c t u r in g a n d m in in g , w a s 7 9 p e r c e n t o f th e 1 9 2 3 -1 9 2 5 a v e r a g e in F e b r u a r y a s c o m p a r e d w it h 8 0 p e r c e n t in J a n u a r y . T h e d e c lin e in t h e t o t a l in d e x w a s a c c o u n t e d f o r c h ie fly b y a r e d u c t io n in o u t p u t o f m in e r a ls , p a r t ic u la r ly o f c r u d e p e t r o le u m . S t e e l in g o t p r o d u c t io n s h o w e d a b o u t 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 a v e ra g e d 3 2 p e r c e n t o f c a p a c it y in F e b r u a r y . A u t o m o b ile p r o d u c t io n d e c re a s e d s lig h t ly f u r t h e r , a n d o u t p u t o f p la t e g la s s c o n t in u e d t o d e c lin e . L u m b e r p r o d u c t io n r o s e s e a s o n a lly . I n t h e f ir s t t h r e e w e e k s o f M a r c h a c t i v i t y a t s t e e l m il l s a n d a u t o m o b ile f a c t o r ie s w a s a t a b o u t t h e s a m e a v e r a g e r a t e a s in F e b r u a r y . I n t h e n o n d u r a b le g o o d s in d u s t r ie s th e r e w e r e m o d e r a t e in c r e a s e s in o u tp u t in F e b r u a r y a t t e x t ile m ills a n d s h o e f a c t o r ie s , w h e r e p r o d u c t io n h a s r e c e n t ly b e e n a t lo w le v e ls , w h ile a t m e a t - p a c k in g e s t a b lis h m e n t s a c t iv it y d e c lin e d . 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 , a s r e p o r t e d b y t h e F . W . D o d g e C o r p o r a t io n , s h o w e d a s h a r p d e c lin e f r o m J a n u a r y t o F e b r u a r y , r e fle c t in g c h ie f ly a m a r k e d r e d u c t io n in a w a r d s f o r p u b lic ly - fin a n c e d p r o je c t s . C o n t r a c t s f o r r e s id e n t ia l b u ild in g in c r e a s e d m o d e r a t e ly . I n t h e f ir s t h a lf o f M a r c h t h e r e w a s a c o n s id e r a b le f u r t h e r in c r e a s e r e p o r t e d f o r r e s id e n t ia l b u ild in g a n d a w a r d s f o r o t h e r c o n s t r u c t io n a ls o in c r e a s e d . E m plo ym en t Index of total loadings of revenue freight, adjusted for seasonal variation , 1923-1925 average = 100. B y months, Ja n u a ry , 1934, to Fe b ru ary, 1938. WHOLESALE PRICES F a c t o r y e m p lo y m e n t a n d p a y r o lls in c r e a s e d b y s o m e w h a t le s s t h a n t h e u s u a l s e a s o n a l a m o u n t b e tw e e n th e m id d le o f J a n u a r y a n d t h e m id d le o f F e b r u a r y . T h e 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 f a c t o r y e m p lo y m e n t w a s a t 8 3 p e r c e n t o f t h e 1 9 2 3 -1 9 2 5 a v e ra g e in F e b r u a r y a s c o m p a r e d w it h 8 4 in J a n u a r y . I n th e d u r a b le g o o d s in d u s t r ie s d e c re a s e s w e re g e n e r a l in F e b r u a r y , t h o u g h n o t s o la r g e a s in p r e c e d in g m o n t h s . E m p lo y m e n t in n o n d u r a b le g o o d s in d u s t r ie s in c r e a s e d s o m e w h a t f o llo w in g a p e r io d o f r a p id d e c lin e . E m p lo y m e n t in t r a d e , a t m in e s , o n t h e r a ilr o a d s , a n d in t h e c o n s t r u c t io n a n d p u b lic u t ilit y in d u s t r ie s d e c r e a s e d s o m e w h a t f r o m t h e J a n u a r y le v e l. D is t r ib u t io n V a lu e o f d e p a r t m e n t s t o r e s a le s , a s m e a s u r e d b y t h e 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 , d e c lin e d f r o m 9 0 p e r c e n t o f th e 1 9 2 3 -1 9 2 5 a v e r a g e in J a n u a r y to 8 8 p e r c e n t i n F e b r u a r y , a n d i n t h e f ir s t t h r e e w e e k s o f M a r c h t h e r e w a s a f u r t h e r d e c r e a s e . S a le s a t v a r ie t y s t o r e s a n d m a il o r d e r h o u s e s in F e b r u a r y s h o w e d s o m e w h a t 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 . F r e ig h t - c a r lo a d in g s d e c r e a s e d f u r t h e r in F e b r u a r y , r e fle c t in g c h ie f ly r e d u c e d s h ip m e n t s o f c o a l a n d g r a in , a n d s h o w e d a s e a s o n a l in c r e a s e in t h e f ir s t t w o w e e k s o f M a r c h . T h e c u r r e n t le v e l o f c a r lo a d in g s is a b o u t 2 5 p e r c e n t le s s t h a n a y e a r a g o . C o m m o d it y P r i c e s Index compiled by U . S. B ureau of La b o r Statistics, 1926 = 100. B y weeks, 1934, to week ending M arch 19, 1938. EXCESS RESERVES OF MEMBER BANKS T h e g e n e r a l le v e l o f w h o le s a le c o m m o d it y L a b o r S t a t is t ic s in d e x , s h o w e d lit t le c h a n g e t h ir d w e e k o f M a r c h . T h e r e w e re s e a s o n a l m e a ts , w h ile p r ic e s o f s u c h b a s ic c o m m o d it ie b it u m in o u s c o a l d e c lin e d . p r ic e s , a s m e a s u r e d b y t h e B u r e a f r o m th e m id d le o f F e b r u a r y to in c r e a s e s in p r ic e s o f liv e s t o c k s a s w h e a t, c o tto n , r u b b e r , z in c , u of th e and and B a n k C r e d it E x c e s s r e s e r v e s o f m e m b e r b a n k s in c r e a s e d d u r in g t h e f ir s t t h r e e w e e k s o f M a r c h t o o v e r $ 1 ,5 0 0 ,0 0 0 ,0 0 0 , t h e h ig h e s t l e v e l s i n c e l a s t A p r i l . T h e b u l k o f t h e in c r e a s e o c c u r r e d a t N e w Y o r k C it y b a n k s , w h ic h in t h e t h ir d w e e k o f t h e m o n t h h e ld o v e r $ 7 0 0 ,0 0 0 ,0 0 0 o f e x c e s s r e s e r v e s . D u r i n g F e b r u a r y a n d t h e f ir s t h a l f o f M a r c h , t h e r e w a s l it t l e n e t c h a n g e i n d e p o s it s a n d in t o t a l lo a n s a n d in v e s t m e n t 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 . H o ld in g s o f U n it e d S t a t e s G o v e r n m e n t o b lig a t io n s d e c lin e d a t b a n k s in N e w Y o r k b u t in c r e a s e d in C h ic a g o . C o m m e r c ia l lo a n s , w h ic h h a d d e c r e a s e d s h a r p ly in t h e f o u r p r e c e d in g m o n t h s , s h o w e d a f u r t h e r m o d e r a t e d e c lin e . M o ney R a t es W ednesday figures of estimated excess reserves fo r all member banks and for selected N ew Y o rk C ity banks, Ja n u a ry 3, 1934, to M arch 16, 1988. and B ond Y ie l d s C o n d it io n s in t h e s h o r t - t e r m m o n e y m a r k e t c o n t in u e d e a s y in M a r c h . R a t e s o n T r e a s u r y B i lls w e r e s lig h t ly lo w e r a n d p r im e c o m m e r c ia l p a p e r w a s q u o t e d a t a r a n g e o f f r o m % t o 1 p e r c e n t a s a g a in s t t h e f la t 1 p e r c e n t r a t e w h i c h h a d p r e v a ile d s in c e a y e a r a g o . Y ie ld s o n T r e a s u r y b o n d s a n d n o te s , a f t e r d e c lin in g f o r th e p a s t s ix m o n th s , a d v a n c e d s lig h t ly a r o u n d th e m id d le o f M a r c h . Y ie ld s o n c o r p o r a t e b o n d s a ls o a d v a n c e d in M a r c h , r e fle c t in g p r in c ip a lly d e c lin e s in p r ic e s o f r a ilr o a d bonds.
@FedFRASER