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MONTHLY BlUSINESS REVIEW
o f
the
~lume 27, No.2
FEDERAL RESERVE
o f
Dallas
'l:'his, copy is released for pub·
hcatlOn In afternoon papers-
Dallas, Texas, April 1, 1942
DISTRICT SUMMARY
The influence of the war effort upon the National economy
and the attendant readjustments necessary to effect a coordinated program of production and distribution are having ~n
increasing effect upon operations in some lines. of industry 1~
this district. In the petroleum industry, productIOn of crude 011
and refinery operations are being curtailed substantially in order
to bring about a better alignment between supplies and the
effective demand. Drilling of new oil wells has also been reduced
in order to conserve strategic materials. At the same time, construction activity is being well sustained due chiefly to large
awards for publicly-financed defense projects. In February, the
value of construction contracts let in this district was more
than three-fourths greater than a month earlier and a year ago.
Shipments of lumber continued to expand coincident with subStantial increases in the volume of new orders. Production and
shipments of cement were sustained at a much higher level than
a year ago. Cotton consumption at processing establishments in
Texas during February was at a slightly slower rate than in that
month a year earlier. Although the volume of sales at retail outlets in this district declined somewhat from January to February, Consumer purchases continued well above those of a year
ago. Distribution of merchandise through wholesale channels
during February was nearly one-fourth higher than in February,
1941.
BUSINESS
The wave of anticipatory buying at retail outlets that
swept the country in January appears to have subsided to some
extent during February. Nevertheless, consumer purchases were
maintained at a high level. In this district, the value of sales
during February at reporting department stores was .10 per ce~t
greater than in the corresponding month a year earlier, and this
bank's seasonally adjusted index of sales stood at 127 per cent of
the 1923-1925 average, which closely approximates the avera~e
for the four months preceding the marked increase recorded 10
January. Department store sales appear to have i~creased ~ore
than seasonally during the first half of March, and 10 compamon
With that period of 1941 the distribution of merchandise at
weekly reporting firms was up 16 per cent.
Department store inventories were increased by more than
the average seasonal amount in February, and at the month-end
the value of stocks was 37 per cent greater than a year earlier.
!t is probable that about one-half of the increase over the year
IS accounted for by the higher prices of goods carried at department stores. Merchandise orders outstanding on February 28
Were 10 per cent higher than a month earlier and about twothirds greater than on that date of 1941.
The distribution of merchandise through most reporting lines
of Wholesale trade in this district declined seasonally from JanUh~ry to February, but sales continued at a level about one-fourth
Igher than in the corresponding month a year earlier. Among
the individual lines of trade, the most pronounced increase over
a year ago occurred in the distribution of drugs, groceries,
machinery and equipment, hardware, and surgical equipment.
Stacks of goods on hand at reporting wholesale firms on February 28 were valued about one-fifth higher than on that date in
1941.
BAN K
March 3 1
continued the rise that has been uninterrupted since January
last year. According to the Bureau of Business Research of
the University of Texas, employment during February was
one-fifth greater than a year earlier and payrolls were 47
per cent higher.
The number and liabilities of business failures in the Eleventh
District continued in comparatively small volume in February,
notwithstanding an increase as compared with a month earlier.
Dun and Bradstreet reported 19 insolvencies in February with 3
total indebtedness of $253,000.
AGRICULTURE
Weather conditions during February continued generally
favorable for field work, with the result that farmers in the
Eleventh District made further progress in the preparation of
soil for spring planting. At the same time, seeding of cotton and
corn made considerable headway in south Texas, and is being
gradually extended northward. Snows in north and northwest
Texas and fairly general rains in several areas elsewhere early in
March partially relieved a deficiency in surface moisture, which
was becoming serious in some localities. Additional rains in
most areas, particularly southwest Texas, would be very beneficial to growing crops and to livestock ranges.
The growth of winter wheat and oats in central and north
Texas, which had been retarded by the lack of adequate moisture, was stimulated by the widespread rains and snows in early
March. Reports indicate, however, that the condition of the
crops in those areas is below normal and that insects have caused
considerable damage. On March 1, the condition of wheat in the
heavy producing area of the Texas Panhandle was reported to
be generally good, with prospects favorable for above-average
yields.
Growth of commercial vegetable crops in the truck growing
area of south Texas, which had been good in February, was
retarded by low temperatures early in March and some crop
damage resulted from frosts and high winds. These unfavorable factors were accompanied by generous rains in virtually
all dry-land areas, however, and the outlook for the production of spring truck crops is still good, though harvesting may
be later than was anticipated earlier.
Livestock ranges, particularly in the sheep producing area of
southwest Texas, deteriorated further in February as a result of
insufficient rainfall and cold nights, which retarded the growth
of range feeds. Nevertheless, the Department of Agriculture
CASH
,
FARM
INCOME
ELEVENTH FeDERAL RUERVE
OISTRtcT
"
1600~...j....~--I--I--l-+-l-+-+-1--I--I-+-t-+-I'_
,
FollOWing a seasonal decline in January, employment in nonpgricultural businesses in Texas resumed the upward trend in
ebruary that was in evidence throughout 1941, and payrolls
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
reports that on the whole the outlook for spring ranges is favorable due to the abundant supply of subsoil moisture in most
areas. Wheat pastures in north and northwest Texas are still
supplying feed for livestock, though not to the extent that was
anticipated earlier. The condition of cattle showed little change
in February and it is probable that animals will emerge from
the winter in above-average flesh. Demand for cattle, especiaUy
feeders and stockers, has been strong. Prospects indicate a large
1942 caIf crop. The deterioration of ranges in the Edwards
Plateau region of Texas has had a very adverse effect upon the
condition of sheep, with the result that prospects are unfavorable for a large supply of grass-fat lambs for spring marketing.
In some areas the lamb crop is expected to be short. Moreover,
the development of early lambs generally has been unsatisfactory. The condition of sheep and their ranges in New Mexico
and Arizona continues generally good.
Increased production of livestock in this district during 1941
was accompanied by reduced marketings due in part to the fact
that generally favorable range conditions and ample feed supplies were conducive to an expansion in the number of animals
retained on farms and ranches. In consequence of these developments, the number of livestock on farms and ranches in this
district at the beginning of 1942 was 1,267,000 head greater
than a year earlier and only fractionally below the total on
January 1, 1934, when the all-time peak for that date was
established. In the five states wholly or partially included in the
Eleventh District, the inventory of cattle and calves on January 1 this year was 680,000 head greater than a year earlier, and
the number of sheep and lambs increased 450,000 head. The
number of hogs on farms, which had shown a pronounced decline
in 1940, increased considerably during the past year. Marketings of hogs also increased, reflecting rising prices and a favorable hog-corn ratio. The aggregate value of livestock on farms
and ranches in the five states at the beginning of the current
year amounted to $8 52,000,000 as against $647,000,000 a
year earlier.
Production of wool during 1941 in the five states wholly or
partially included in this district showed little change from that
a year earlier, despite an increase in Texas, Oklahoma and Louisiana. Production in New Mexico fell off nearly 600,000 pounds
and a small decline was recorded for Arizona. In Texas, wool
WHOLESALE AND RETAIL 'IlRADE STATISTICS
~-----Percentage ohange in:----~
Number
Not sales
Stook. t -~
of
Fcb., 1942 from
Jan. 1, to
Feb., 1942 trom
reporting February, January, Feb. 28, 1942 February, January,
Retail trade:
firm.
1941
1942
from 1941
1941
1942
Department etore.:
Totol11th Dist .....
48
+LO
- 16
+19
+37
+11
Dalla•............
7
+ 6
-10
+12
+29
+ 8
4
+19
-21
+27
+40
+16
Fort Worth . . .. .. . .
Houston ... . ... . .. .
7
+ 7
-28
+21
+49
+21
San Antonio ..... . .
6
+20
- 9
+28
+34
+ 7
Shreveport . . .. . . . .
3
+18
- 17
+31
Other oities . . ..... .
22
+ 8
-14
+17
+ii
Independent stores:"
-7
Arizona. . . . . . . . . . . 250
+12
+15
-12
-1
New Mexico. . . . .. . 190
-6
Oklahoma. . . . . . . . . 524
-6
-16
+3
Toxas .... . . .. ... . . 1,195
-18
+4
+5
Whol_le trade:"
Maohinery, eqpt. &:
.upplies.........
4
+18
+ 7
+ 2
+·i
Automotive supplie.
5
+ 2
-19
+ 0
+ii
10
+17
-10
+15
Drugs (inol.liquore).
+21
+1
l!,leetri~al supplie.. .
a
- 8
- a
- 8
+·4
28
+29
- 6
+30
Groceries. . . . . . . . . .
Hnrdware . . . . . . . ..
11
+24
- 4
+29
-3
No ohg.
Surgioal eqp't.. . . . .
6
+24
- 0
+31
Tobaoco & produots.
4
- 2
+ 9
+ 1
"Compiled by United Stat.. Bureau of Cen.UI. tBtookJ at end of month.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1923·1925 average - 100)
February
February
January
Deoember
1942
1942
1941
1941
8ILIes (daily average):
100r
108
122
222
Without seasonal adjustment ..... .. .
127
161
128
118
With seasonal adjustment .......... .
Stooks (end of month):
67r
04
82
77
Without seasonal adjustment ....... .
70r
94
88
With seasonal adjustment .......... .
98
r-Revised.
production rose moderately to a new peak of 80,250,000 pounds,
and cash income from the disposition of the dip rose 28 per cent
to $29,700,000, reflecting chiefly a substantial increase in the
average price received for wool. The wool clip in the five states
as a whole totaled 104,300,000 pounds and cash receipts from
wool sales amounted to $37,29 0,000 .
Mohair production in Texas, New Mexico and Arizona during
the past year increased 3 per cent to a peak of 20,800,00 0
pounds, and cash income of farmers and ranchmen from that
source totaled $12,0 00,000, as against $10,140,000 in 1940.
Cash income of farmers in the five states wholly or partially
included in the Eleventh District evidenced a pronounced
increase during 1941, reflecting chiefly higher prices received
for farm products. Government benefit payments to farmers in
this district declined further by $34,000,000 as compared with
a year earlier; nevertheless, cash income from all sources for
1941 was placed at $1, 340,000,000, which was about $305,000,000 greater than the revised estimate for 1940. Income
during 1941 from the sale of cotton and cottonsed increased
$160,900,000 over that a year earlier, which accounts for threefourths of the total gain in receipts from the sale of all agricultural crops. Aggregate receipts from the latter source amounted
to $679,000,000 as against $463,000,000 in 1940. The livestoCk
NUMBER AND VALUE OF LIVESTOCK ON FARMS
AS OF JANUARY 1, 1942 AND 1041
(000'. omitted)
~--- Texas
Eleventh Di.triot" No. head
Total Value
No. head
Total Value
1942 1941r
1942
1941r
1942 1941r
1942
1941 r
600
638 $ 28,142 $ 30,270 1,290 1,340 $ 61,215 $ 63'r~~
Horses and colts . .... .
Mules nnd oolts......
484
526
34,568
39,390
821
868
63,174
68, 67
All cattle and onlves. . 7,444 7,090 318,641 223,078 13,653 12,972 585,793 419'~S2
Milk eowst ..... 1,473 1,444
81,015
59,204 2,790 2,701 154,075 113'231
Hogs, including pig.. . 2,042 1,926
23,246
12,530 4,110 3,878
44,498
23 '731
2
All sheep and lambs . .. 10,349 9,831
69,810
51,359 14,035 13,584
97,138
7,
- - - - --- --- - - - -
----
Total. .......... 20,919 20,01l $474,407 $356,627 33,909 32,642 5851,818 $647,432
"Eleventh Distriot figure. are combined tot.l. for the five .tate. "holly or partially inoluded
in the Elevonth Distriot.
tCows and heifers tlfO years old and over kept for milk; number and valuo inolud.d io
"all oattle and oalvel."
r-Revised,
CASH FARM INCOME
(In tbou .. nd. of dollafl)
~---Texas
1941
Cotton ...... . ... . . ...... $235,943
Cottonsced. . . . . . . . . . . . . . 38,896
Food grainst.... . . .... . .. 43,770
Wheat. . . . .. . ... .•. . .. 27,207
Feed oropst.. . . . . . . . . . . . . 19,468
Corn..... . .. . ...... . ..
6,773
All vegetablcs!... . .. . .... 31,495
Irish potatoe... . . ... .. .
2,454
Truok orops . .... . .. .... 26,548
Fruits ... . . .. . ... ........ 16,762
Citrus fruits... . ....... 13,127
Total inoome from all crops 403,144
Livestock- ............... 303,331
Government income pmts . 63,647
1940
$130.047
20,826
32,421
19,631
14,930
50435
30,290
1,540
26,467
0,350
6,546
262,824
239,827
86,489
Eleventh Di.trlot"-;;-1939
1941
1940
103.
$128,137 S 347,202 S 214,03g $ lD9'm
15,812
58,636
31,030
26, 30
26,326
104,004
80,012
7N38
18,410
68,778
51,980
~'675
11,360
34,856
28,582
8'560
4,158
11,598
10,011
'911
23,795
59,290
53,915
4~'B03
1,431
4,888
4,091
'693
20,519
47,783
44,366
3~'0IQ
11,447
26,676
18,100
19'93Q
8,358
16,381
9,136
'424
230,209
679,0 15
462,830
48~'695
233,210
552,712
429,846
41 'ISg
110,755
108,532
142,667
1~
Total farm income .... 770,122
589,140
574,172 1,340,259 1,035,343 1,019,308
"Eleventh Di.trict figures are combined totnls for the fivo .tates wholly or partiatJlY 10·
cluded in the l!,lcventh Di.trjot.
tIlIcludes "heat, rye, rice and buokwh ••.
tlncludes corn, oats, barley, grain .orghuma and hay.
Unoludes lri.h and ,,,eet potatoes and truok orop•.
5Inoludes receipt, from the ule of Iivutock and live.toek produot •.
LIVESTOCK RECEIPT8-(Numblr)
~For~ Worth---~-- San Antonio---;;;;
Cattle . . .....•... . .•.. . ..
Calve•........... . •.... .
Hog•................ . ...
Sheep ...... . •........ . . .
February ~'ebruary
1042
1941
38,705
20,300
15
15,122
]6 '3'5
8
50,923
'8'7,9
37,699
1, , 0
January
1042
45,682
6244,'969
131
43,766
February February
1942
1941
15,748
12,9 1B
262
75
13 '8
11~,'867672
10,
5",831
7,899
Ja~g42
Q67
~~'B29
12'008
o'~gO
'
COMPARATIVE TOP LIVESTOCK PRICES
(Dolla .. per hundred".iKbt)
- - - F ort Worth---~-- San Antonio---;;';;
February February J~nuary February February Jaf042
1942
1941
1942
1042
IOU
60
$11.60
$12.50
$11.00
$11.75
SI1.
Beer .teers .... . ...... . .. . 512.00
11.25
11.50
... ··6
Stooker .teers . .. ........ . 11.50
12.75
12.00
12.50
·ia:2il ·iiJ:iJiJ
12 ·~0
Heifers and yearling•.....
Butoher oows ........... .
9.25
7.50
8.85
0.00
7.00
Iho
Calves .............. . .. . 12.50
10.60
11.50
11.75
10.50
11.00
Hog•..... . .. . .....•.....
13 .10
8.LO
11.75
12.75
7.85
10.60
W.oO
U.U
U.OO
0.50
Lambs ................. . U.OO
MONTHLY BUSINESS REVIEW
industry in this district has shown rapid growth in recent years,
and cash receipts from the sale of livestock and livestock prodUCts have been rising. During 1941, total cash receipts amounted
to $552,700,000, which is $122,900,000 greater than in 1940
and nearly double the annual average cash receipts from that
source during the five years 1924-1928, inclusive.
FINANCE
Effective March 21, the Federal Reserve Bank of Dallas
reduced from 10 per cent to 1 per cent per annum the rate on
discounts of eligible paper for member banks and advances
thereon, under Sections 13 and 13 a of the Federal Reserve Act,
as amended.
Member bank reserve balances maintained at the Federal
Reserve Bank of Dallas, which had declined substantially in the
last half of February, reflecting primarjl.y withdrawals by the
Treasury of funds held in depositary banks and payments in
cash for Government securities allotted in connection with the
recent Treasury offering, rose considerably during the first two
weeks of March. Daily average reserve balances in the latter
period were $1,800,000 greater than in the first half of February and only fractionally below the all-time peak of $311,200,000 recorded during the first hal.f of December, 1941. Daily
average excess reserves likewise increased during the initial two
Weeks of March to, a level closely approximating that one month
earlier, which averaged nearly $90,000,000.
Federal Reserve notes of this bank in actual circulation
showed a further substantial increase during February and the
early part of March, reaching a new aU-time peak of $142,680,O?O on March 9. The latter amount is approximately $4,300,000
higher than the previous peak reached early in February, and
$42,570,000 greater than on the corresponding date in 1941.
The increase in this bank's note circulation during February and
early March was reflected principally in currency of $10 and
$~O denominations, but there were also sizable increases in the
Circulation of currency of some of the larger denominations.
Subscriptions by banks and other investors in trus district to
the new issue of 2Y4 per cent Treasury bonds of 1952-195',
dated February 25,1942, amounted to $101,830,000, and allotrnents, which were at a rate of 32 per cent of subscriptions,
tOtaled $32,8 5 5,300.
Total investments of thirty-three weekl.y reporting member
~al1ks in leading cities of this district rose $12,900,000 between
ebruary 11 and March 11, reflecting chiefly purchases of the
new issue of Treasury bonds. Total loans at these banks declined
f1,soo,000 during the four-week period due to reductions in
oans On securities and in "all other" loans which include instalrnent and personal loans. Contrary to the usual trend at that
season, commercial loans increased moderatel.y, due apparently
, t? the Sustained demand for funds generated by the war produc~Ion program. Aggregate loans and investments showed a net
~ncrease of $11,400,000 during the four weeks ended Marc!} 11,
d on that date the total of $695,700,000 was $104,300,000
. gher than a year earlier. The gain over the year comprises
Increases of $38,600,000 in loans and $65,700,000 in investrnents.
70Totai deposits at reporting banks increased further by $11,. 0,000 during the four weeks ended March 11, reflecting gains
~ a~justed demand and United States Government deposits.
e illcrease in Government deposits was due chiefly to "book
~edit.s" resulting from Government security purchases which
ere 111 excess of the Treasury's withdrawals from its accounts
at those banks during the four-week period.
INDUSTRY
D.The value of construction contracts awarded in the Eleventh
t'lstrict expanded sharply from January to February, due en~rely to an increase in awards for publicly-financed projects
ost of which will be used directly or indirectly in the war
i:
8
effort. In the residential field, awards for the construction of
additional army cantonments showed a pronounced increase,
and the value of contracts let for one-family dwellings that will
CONDITION OF THE FEDERAL RESERVE BANK
(In ihoullnd. of dollan)
March 15. Maroh 15,
1942
1041
Total cnoh rcoervet . ....... .. ... . . . .... . . . ....... . $398,105
$311,SO~
Discount. for member bank... . ...... . ......... .. . .
103
None
Industrial advances .. . .. , ..................... ... .
238
277
United States Govornment .eourities ...........• . ...
87,797
8M35
88,138
Total earning nsoots .... . ................... . .... .
87,112
Member bank re.erve depo.its ... . ................ .
31M25
255,05~
i.deral Rea"vI nol •• in aetual oireuJation .. . ...... .
140,210
08,70~
F.b.15,
1042
UIO,OOO
87
24~
87.301
87,724
317,310
130.402
CONDITION STATISTICS OF MEMBER BANKS TN LEADING CITIES
(In thousandl of dollan)
Maroh 11, Maroh 12,
Feb. 11,
1042
1041
1042
Totalloana aod invettment.. . . . . . . . . . . . . . . . .. . . . . . $695.083
$591,360
$~8U43
Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35S,88~
820,300
3~0,385
Commeroial, indu.trialand 19rioulturallo.nl. . . . . .
255,433
220,046
255,027
Opoo markot paper... ..... .. .. .. ...............
2,460
1,050
2,333
Lo.ns to broken .nd dealera in leouritie.. . . . . . . . . .
4,637
3,S54
4,051
Oth~r loan8 for purohasing or carrying lecurities....
12,244
11,895
12,882
Real estate loans. . .. ............ ...............
21,~80
23,471
21,617
Loao. to banks...... .. .. .. .. .. .. .. .. .. .. . .. . .. .
301
640
327
All other 10.08.................................
~2,041
57,844
84.148
United Stat.. Government direot oblig.tions.... . . . . .
233,875
1~0,00+
221,005
Obligations fully ~u.ranteed by United St.tel Gov!...
88,109
40,385
30,123
Other securities. . ... ... ....... .. .............. ...
64,753
61,671
63,730
ncsorves with Federal Reserve Bank.... . . . . .. .... ..
190.187
101,057
102,157
nalanoe8 with domestic bankl..... .............. .. .
302,010
307,400
301,110
Dem.nd deposita-adiu.ted' ... '" .........•..... .
645,203
556,70~
~3M16
TIme doposlt!....... .. ............ ........ . ... .. .
129,582
137,000
130,131
United Slote. Government depo.ita... . . . . . . . . . .. . . .
44,185
22,420
35,187
Interbank deposit........ .......... .. .. ...........
31~J209n3e
204,526
325.042
Borrowings from Federal Re.crve nank . . . . . . . . .. . . .
N
Noae
Non.
'Inoludet all demand depositl other than interbank and United St.tea Government, 1m
ouh itema roported u on hand or in procell of collection.
DEBITS TO TNDJVIDUAL ACCOUNTS
(In thoulands of doUars)
Febru.ry, Fobruary, PotK.ohang. January,
1041
over year
1042
1942
Abilen ............. ..... S 12,445
12,224
2 $ 15,072
AUltin . ........ '" ......
41,175
34,088
47,752
21
Beaumont. . . . .. . . . .. . . . .
32,413
27,103
37,1~
10
Corsicana. . . . . . . . . . .... .
4,155
3,373
5,022
23
Dallas. . . . .. .. .. . ... . ...
354,133
266,639
897,888
33
El Palo.................
41,011
46,800
50,900
- 10
Fori Worth.... .... .. . .. .
100,900
88,361
128,521
32
Galve.ton. . . . .. . . .• . . . . .
2M71
24,440
37,011
0
Houlton.. .. . .. .. . .. .. .. .
322,120
200,147
371,302
24
Port Arthur. . . .. .. .. .. ..
13,061
10,188
14,107
28
Ro9"ell. '" . . . . . . . ......
4,665
4.577
5,351
2
San Antonio. .. . .. .. .. .. .
89,043
78,347
97,038
15
Shreveport. . . . . . • . . . . . . .
58,500
45,716
~0,004
28
Texarkana'.... . . . . . . ....
26,451
8,40~
22,304
+215
TuMan..................
15,410
13,387
17,505
16
Tyler. ................. .
12,750
11,430
15,151
+11
Waco...................
10,078
14,606
21,044
31
Wiohitl Fall.. . . . . . . . . . . .
20,078
15,508
24,280
20
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Pet, .• h.ngo
onr month
-11
-14
-18
-17
-10
- 18
- 11
-28
-13
-8
-18
-7
-16
+10
-12
-1~
-12
-17
Total . . . . . . . . . . . . . . . 1,204,058
900,348
+25
1,373,284
-12
'Includes tho figures of two banks in Tcx.rkan8, Arkan!a., located in the Eighth Di.triot,
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Averag. of d.ily figures-in thousands of doll an)
Combined total
Relerve oity b.nk.
Country banb
February,
February,
October,
November,
December,
January,
February,
Groa.
dem.nd
1040 ......... $1,365,474 $
1941. ........ 1,533,864
1041 ......... 1.662,400
1941 ......... 1,742,340
1041 . ....... . 1,803,330
1042 ... ..... . 1,801,210
1042 ......... 1,805,645
Grall
Time
demand
234,300 $ 785,130 S
241,491
870,181
287,607
962,113
238,150
998,310
236,810 1,028,881
281,871 1,026,507
227,643 1,034,477
GrOll
Time
demand
129,055 $570,344 $
134,200
657,683
132,050
700,353
132,582
744,036
131,048
774,449
128,427
774,043
120,400
771,108
Time
105,251
107,285
105,617
105,62~
104,871
103,H4
101,044
SAVINGS DEPOSITS
Febru.ry 28, 1042
Number of
re~orting
ne.umont ...............
Dall ....................
El Paso ................ .
Fort Worth ......... . ....
Galveston ...............
Hou.ton ..... . ...........
Lubbook ................
Port Arthur .. ......... ..
San Antonio .. .... ..... ..
Shreveport ........• . ....
Waoo ...................
Wiohita F.lls ............
All oth~r ......... . . .. ...
Total. ..............
anka
3
8
2
3
4
10
3
2
5
3
a
3
64
113
Percentaae change in
savings oposits from
Number of Amount of
savings
savings
Feb. 28,
Jan.31.
dopositors
deposits
1941
1942
10,368 $ 4,224,706
.0
.S
90,507
25,176,041 - 5.6
.0
18,614
6,873,520 -17.6
- 3.4
33,401
12,450,788 - 5.2
.8
18,353
10,844,745 -10.0
.0
75,353
31,102,357 - 3.8
- 1.2
1,403
548,001
- 1.2
1.3
5,513
2,070.076 - 8.8
+ .~
22,702
17,503,578 - 2.6
.1
25,834
12,004,SOI - 3.0
- .03
7,307
4,084,114 - 0.4
.7
7,171
3,382,406 - 7.5
.1
68,027
27,502,078 - 8.8
- 1.1
-
-
+
-
870,603
--158,857,415
- 0.8
-
.0
MONTHLY BUSINESS REVIEW
4.
be placed on the " for sale" or "for rent" market when completed
rose by about one-third. The value of awards for private onefamily dwellings for owner occupancy declined to the lowest
level since December, 1938. Non-residential building, including
commercial, manufacturing, and military facilities buildings,
was nearly two and one-half times that in January and about
t wo-thirds greater than in February, 1941. Engineering construction, comprising public works and public utilities construction, totaled $11,000,000 during the month, virtually all
of which was publicly-financed work. The aggregate value of
contracts awarded in February totaled $43,000,000, which was
about 82 per cent greater than a month earlier and year ago.
Only one-fifth of the total value of awards in February this
year was privately-financed.
The demand for lumber at pine mills in this district, which
had shown a substantial gain in the initial month of 1942, increased sharply further in February, and at the month-end
unfilled orders on the books of reporting mills averaged onefourth higher than a month earlier and 71 per cent greater than
a year ago, Mill shipments of lumber during February exceeded
production by a wide margin, with a consequent decline in
in ven tories.
Further dislocations in the distribution of petroleum and
refined products, as a result of tanker sinkings by enemy submarines and the diversion of many additional tankers for military purposes, are having pronounced effects upon operations
in the petroleum industry in the southwest. In view of the
increases in above-ground stocks of crude oil in recent months
and the current decreases in the use of crude oil in this area,
proration authorities in Texas and New Mexico reduced substantially production allowables for March, and the National
Petroleum Coordinator has recommended a further curtailment
for April. In February the daily average output of crude oil in
the Eleventh District had risen to a newall-time peak, which
was 17 per cent higher than a year ago, The high rate of production during February, and the decreased use of crude oil resulted
in a 7,000,000 barrel increase in stocks of crude petroleum in
this district, and at the month-end, inventories were the highest
since the spring of 1939. In contrast with the gain in this district, crude oil inventories elsewhere in the United States showed
little change in February.
In addition to the increase that occurred in stocks of crude
BUILDING PERMITS
Percentage ehange
Percentage
February, 1942
valuation from Jan. 1 to Feb. 28, 1942 ohan~e
valuatIOn
Valuation Feb., 1941 Jan. 1942
No.
No.
Vaillation from 1941
Abilene ... . ...
Amarillo . . ... .
Austin ..... . ..
Beaumont .. ...
Corcus Christi.
Dal as ...... ..
El Paso . .. ....
Fort Worth ....
Galveston .....
HOlls!on ... . ..
Lubbock ......
Port Arthur . . .
San Antonio ...
Shreveport .. . .
Waco .. .......
Wiohita Falls . .
.
41
S 101,744 + 82
93,776
288,301
318,528
1,189.417
904,952
76,032
447,720
163,336
1,400,890
563,894
60,118
727,429
183,283
219,858
55,339
- 53
- 63
+260
- 18
7
- 78
+ 28
+ 58
+ 25
+ 48
- 35
+ 92
- 39
+ 45
- 32
.
93
-
+ 3
+100
+ 10
+ 90
+229
-63
- 38
9
- 19
5
+205
+ 7
+ 26
- 33
+1 84
+124
260
322
287
1,329
145
488
208
914
200
147
1,471
184
141
63
$ 200,119
140,551
537,522
486,170
1,561,057
3,33S,786
198,659
940,927
342,623
2,881,425
748,579
133,673
1,303,573
456,366
297,321
80,096
+53
-62
- 54
+23
-42
+65
-61
+10
+65
- 8
+26
-30
-11
-27
-6
-42
-
125
178
155
791
64
256
91
404
173
57
691
86
75
40
0,342· 14,751,488
-8
-
6,793,017 + t
1
Totnl .. .. . 3,227·
tIndicates change of less tban one·half of one pcr cent.
·N umber of permits for Amarillo not nvnilable,
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
February
February
January
Jan. 1 to Fob. 28
1942
1941
Eleventh District-total.. $ 42,981 $ 23,681
Residontial. . . . .. . . ... .
18,564
7,665
All other.. ....... .. ...
24,417
16,016
United States ·~total. .. . . 433,567
270,343
Residential. . ... .. .. . . . 168,014
116,459
All other . , . ... . . . . . .. .
265,543
153,884
·37 States cast of the Rocky Mountains
SOURCE: F. W. Dodge Corporation,
1942
1942
$ 23,209 r $ 66,190
10,105
28,669
37,521
13,104r
750,403
316,846
270,772
102,758
214,088
479,631
r-Rovisedl
1941
$ 44,349
16,013
28,336
512,548
227,765
284,783
petroleum in this district during February, inventories of gasoline increased sharply further, notwithstanding a curtailment in
crude oil runs to' refinery stills. Stocks of motor fuel in Texas
increased 18 per cent during February, and inventories in the
United States as a whole rose 8 per cent to 106,000,000 barrels,
the highest of record. Civilian consumption of gasoline has
already declined, reflecting the voluntary decrease in the use of
automobiles for the purpose of conserving tires and tubes. The
War Production Board, effective March 19, has reduced by 20
per cent the deliveries of gasoline to retail outlets in seventeen
states along the East Coast and in the states of Washington and
Oregon, so that additional transportation facilities may be
utilized in the movement of other essential products. Inventories
of fuel oil on the East Coast declined further by about 1,000,000
barrels during the five weeks ended March 7.
The rate of drilling activity in this district and in the United
States declined further in February, and although the daily average number of wells completed in the nation as a whole was 5
per cent higher than in February, 1941, the number of completions in the Eleventh District was at a 7 per cent slower race
chan a year ago. Since December, 1941, the rate at which neW
wells are being completed in this district has been reduced 22
per cent due to priQJ:ity restrictions. The number of drilling
rigs in operation in this district and in the United States declined
further in February to a level one-fifth smaller than a year agO,
A further expansion in the demand for cotton textiles to supply military requirements was experienced by cotton mills ill
the United States during February and the first half of March,
At the same time, trading for civilian account was again curtailed despite a further increase in the rate of production of
cotton cloth and yarns. There were 893,700 bales of cotton consumed during February, which represents a new high for the
second consecutive month in the daily average rate of consumption, Mills continued to build up their stocks of raw cotton; at
the close of February inventories at mills amounted to 2,580,000
bales which was 3 per cent higher than a month earlier and
about one-third greater than a year ago.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
~---Texas
United StatesAugust 1 to Fcbruary 28
August 1 to February 28
This season
Last season
This season
Last senson
Cottonseed received at mills
(tons) .... , . .. . . ... . . .. .. . .
940,421
1,089,615
8,811,046
4,13 8,S96~
Cottonseed crushed (tons) , . . . .
808,210
916,718
3,178,236
3,836,2 u
Cottonseed on band Feb. 28
841,405
(tons) ... ... . , ... ....... . ..
159,406
138,044
768,339
Production of products:
Crude oil (thousand 100.) . . . .
233,821
278,598
1 ,065,3~~
980.061
Cakc and meal (tons) ... . .. .
356,566
1,481,9 6
427,474
1,383,727
837,56
Hulls (tons) ... .. ......... .
211,384
233,896
789,783
895,79 2
Linters (running bales) . . ... .
221,772
225,300
930,748
Stocks on hand Feb. 28:
88,6S0
Crudo oil (thousand Ib,,) . . . .
14,937
29,552
42,760
Cake and meal (tons) . . . . .. .
113,083
74,595
372,208
253,O~~
211,S
Hulls (tons) . , ..... ....... .
99,113
97,561
206,627
271.349
Linters (running bales) . . ... .
47,370
74,619
148,761
SOURCE: Bureau of Census.
DOMESTIC CONSUMPTION AND STOCKS OF COTTON- (Bales)
8
February
Fobruary
January
AUj!ust 1 to FebruarY~n
Consumption at:
1942
1941
1942
Th,s Reasen Last seOS
Texas mills . . . ....... , ,
18,828
19,368
21 036
136,472
1 29,O~~
United States mills. .. . . 893,745
793,428
945:909
6,280,108
5,216,8
U.S. stocks-cnd of month:
In consuming estab'mts. 2,579,789
1,906,835
2,495,186
Pub. slg. '" compresses . . 12,213,134 14,045,487 12,857,321
CRUDE OIL PRODUCTION- (Barrcls)
. .ilY
Fcbruary, 1942
Increase or deorease '{ dill
avcrage produotio~
Total
Daily avg.
42
produotion
production
Feb., 1941
Jan. 19
464
North Texas .... . ... ..... . .. . 0,600,050
235,738
+ 33,042
+
West Texas ... , .... .. . .. .... . 8,773,450
313,337
+ 77,576
+ 6'150
hal
+ 30,028
+
East Tcxaa . .... . ........... . 13,380,150
South Texas ..... , ... . ...... . 6,440,350
Texas Coastal. . . .. , .... , , ... . _8_ 4R_ oo
,6_ ,5_ _
477,862
230,013
__ 08_ 75
3_ ,8__
+ 26,868
+ 64,815
Total Tex1l8. , , . . •. .... 43,843,100
New Mexico . ........ .... . , . . 3,372,600
North Louisiana ...... .. . .. ... 2,265,200
1,565,825
120,450
80,900
+ 222,329
+ 18,238
+ 11,273
~
+251,840
+ 10,021
Total District .......... 49,480,900
1,707,175
SOURCE: Amcriean Petroleum Institute Weekly reports.
1'168
++ '303
.....:---:::;;
++
1~':~~
'082
MONTHLY BUSINESS REVIEW
APRIL 1, 1942
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve SY8tem)
INDUSTRIAL PRODUCTION
"'hrI, III 1D"~ II.....
2.00
","n '"
toTAl. INOUlt lnIoI. PIIODUOnoN
leo t-+-+-t-- t-
'Of.~ '"011
60
.....NU'.CTUU.
PRODUCTION
t -+---i
160
1-_t_+_+-I-h'4---I
140
I-_t_+_+-I-.('-_t_-I
120
1-1rn--_+-Rrf-I-_t_-I
100
H/' +-4f~~_/ -+-t---i
~
eo t-+--PY-- t-
In February the Board's seasonally adjusted index of industrial production rose from l7l to 173
per cent of the 1935-39 average. As in other recent months, activity in the durable goods manufacturing industries, where the majority of military products are made, continued to advance, while in
industries making nondurable goods and at mines activity was maintained at about the levels reached
last autumn.
t-+---i
~~~
1
936
193e
1940
1942
1936
_
_
le3e
__
1940
0
~~
le42
Federal Reserve monthly index of physical volume of
Production, adjusted for seasonal variation, 1935-39
average
100. Subgroups sbown are expres~ed io
terms of points in the total index. Latest figures
shown are for February, 1942.
=
WHOLESALE PRIOES
h~ DtI!T
120
fU
r - - - . - -.-- -.- - , - --,.- - , ---"i el"
120
1I°1--+--I---+--I---+- -t_--1110
1
001--+--1---+- -1-- -+- --,(,---1 100
·° I---~~I--t_-_+--_t_-_+
__~4_-~
.0l---+---I---+~L-t----+--t_---I GO
eo
19S8
1939
1940
1942
1941
Bureau of Labor Statistics' weekly indexes, 1926
average
100. Latest figures shown are for week
ending Marcb 21, 1942.
=
I.
MEMBER BANKS IN 101 LEADING CITIES
kl.1OIIt orOOl.u ••
' II.UOIIIor
I.
14
.
OO\.~ .....
I
I
I .r/
u" ClOY'" oau&4flON./"
,
_.. "i-_.....
. .f'~.w--'
~
<>?
4 J/-t- ,
)...-~/'
I
~
1
931
193 8
1039
1
940
1
941
1 42
9
~ednesday fipures. Commercial loaDS', which in-
pl,!de industrial and agricultural loans, represent
'or to May
Iben reported. 19, 1937, so-called "Otber for March
loans" as
Latest figures sbown are
11, 1942.
..
MEMBER BANK RESERVES AND RELATED ITEMS
~. or5Ol.u
' &IJOIIt oi MI.U,U
' IICTOtI IIUP'l'\.YWO ,,".JIVI:
nncos
....,nL
...---r20
I. L
1----1- - - + - - - - i 1 6
/
16
DISTRIBUTION
Value of retail trade continued large ill February. Sales at general merchandise stores and variety
stores increased more than seasonally, while sales at department stores declined. In the first half of
March department store sales increased by about the usual seasonal amount .
Freight-car loadings, which in January had been unusually large for this time of year, declined
somewhat in February owing to smaller shipments of coal, grain, and miscellaneous freight.
Wholesale prices continued to advance from the middle of February to the middle of March,
particularly those for finished consumer goods such as meats, fruits and vegetables, shoes, clothing,
and household items. Temporary maximum price orders were issued covering wholesale prices of some
of these products, including pork, canned fruits and vegetables, finished cotton and rayon fabrics,
cotton rugs, and bedding equipment. These orders, according to statute, used as maximums the prices
prevailing within five days prior to issuance. They are effective for only 60 days and may be replaced
by regular schedules.
TREASURY FINANCING AND BANK CREDIT
In March income tax receipts by the Treasury for the first time reflected the higher schedule of
rates. The effect of these recipts on the money market was largely offset by redemption of Treasury
bills previously issued to mature during the tax collection period, by tax-anticipation notes turned in
on payment of taxes, and by continued heavy Treasury expenditures. As a consequence a record
volume of Treasury operations was effected with little influence on conditions in the market. Excess
reserves of member banks showed no large change and on March 18 amounted to about $ 3.2 billion.
United States Government obligations held by member banks in leading cities showed little
change during the first three weeks of March following a sharp rise in February. Commercial loans
increased further .
14
•
In residential building, contracts for private work changed little from January, while those for
publicly-financed projects increased sharply and amounted to about half of the total for the first
time on record. For the past six months there has been a noticeable shift in privately-financed
housing activity from building for owner-occupancy to building for sale or rent; in February,
awards for the former constituted only about one-fifth of the small-homes total. This shift is
attributable mainly to the activicy in defense areas and co legislation enacted last spring making possible the insurance of mortgages taken out by builders.
COMMODITY PRICES
V
I
1
93(i
In nonresidential building, awards for public projects increased materially, while those for
private projects continued to decline. There was a slight rise in awards for public utility construction.
/,'
c~l~
./'/"
Value of construction contract awards increased considerably in February, according to figures
of the F. W. Dodge Corporation, owing mainly to a sharp rise in awards for public projects. Total
awards in February were half again as large as last year, and public awards were about three times
as large.
I
I
10
There were further increases in output at cotton textile mills and at chemical factories, reflecting an increasing amount of work on military orders. At meatpacking establishments activity was
maintained near the high rate reached in January. Shoe production increased by less than the usual
seasonal amount. Anthracite production rose sharply in February and bituminous coal production was
maintained near the high rate of other recent months. Output of crude petroleum, which had been
at record levels in December and January, declined somewhat in the latter part of February and in
the first half of March, reflecting transportation difficulties.
CONSTRUCTION
7P
19:57
Steel production rose to 96 per cent of capacity in February and increased further to 98 per
cent in the third week of March-which corresponded to an annual rate of nearly 87 million net
tons. Lumber production also increased, following less than the usual seasonal decline during the
previous two months. In the machinery and transportation equipment industries, now engaged mainly
in armament production, activity continued to advance rapidly as plant utilization increased and
capacity expanded. Conversion to armament production in the automobile industry, where output of
civilian products was discontinued in early February, is apparently being effected much more rapidly
than had been anticipated earlier.
90
eo
19;' 6
Industrial activity increased further in February and the first half of March. Retail trade was
sustained at high levels and commodity prices continued to advance.
r-::::-'!~r~"
r-
UNITED STATES GOVERNMENT SECURITY PRICES
,r-"''j'''''''.j o
19"0
19 41
1942
'--_--'_ _ -'-___-'
1940
10041
0
Ut42
\1(Iednesday figures. Latest figures shown are for
Marcb 11, 1942.
Prices of United States Government bonds advanced steadily from the middle of February to
the middle of March. Long-term taxable bonds yielded 2.35 per cent compared with an average of
2.39 per cent in February. Prices of short-term securities have held steady since the first of the year,
with Treasury bills selling at around .20 per cent.
MONTHLY BUSINESS REVIEW
THERE MUST NOT BE A LET -DOWN IN SALES OF
DEFENSE SA VINGS BONDS
General Douglas MacArthur, in assuming command of the Allied Forces in the Far East, said in part:
"I have every confidence in the ultimate success of our joint cause. But success in
modern war requires something more than courage and willingness to die. It
requires careful preparation.
"This means the furnishing of sufficient troops and sufficient materiel to meet the
known strength of the potential enemy. No general can make something of
nothing.
"My success or failure will depend primarily on the resources which the respective
governments place at my disposal. My faith in them is complete."
That statement emphasizes a condition that requires speed, speed and more speed in converting our
tremendous resources into airplanes, tanks, guns, and ships and the transportation of those implements
of war to the plac.es of action where their use by our fighting forces will be most effective in admin~
istering a disastrous defeat to the enemy. The need is urgent; the task is difficult. It means that everY
individual must do his utmost and make whatever sacrifices are necessary to protect our national secu~
rity. In performing that duty we must not spare time, energy, or money for none of these would
have value without liberty and freedom of action.
An essential factor in that effort is providing the funds to pay for the materials produced. The
President has estimated that war expenditures during the fiscal year ending June 30, 1943, will rise to
56 billion dollars, and only a part of that enormous sum can be raised through taxation. The remainder,
of course, must be obtained by borrowing, but so far as possible, it should be provided by the public
out of current income, as that method of borrowing will create the least disturbance to our economy·
That means that sales of Defense Savings bonds must rise to higher and higher levels as war expenditures
increase and as national income expands.
Prior to December, 1941, sales of Defense Savings bonds had averaged less than $300,000,000 per
month, but after Pearl Harbor sales rose sharply and exceeded a billion dollars in January this year.
Sales declined to about $700,000,000 in February, and amounted to only $300,000,000 in the first half
of March. While this decline may be attributable in part to the need of individuals for funds to pay the
quarterly instalment of income taxes due this month, it does not constitute a valid reason for indi~
viduals to diminish their purchases of Defense Savings bonds. Even higher taxes must be paid at the
same time that more Defense Savings bonds must be bought. It does emphasize the need for budgeting
savings on a monthly basis so as to provide funds for paying taxes as well as buying Defense SavingS
bonds.
In recent months, more and more business institutions have been inaugurating the voluntary pay~
roll deduction plan so that their employees may set set aside regular amounts each pay day for the pur~
chase of Defense Savings bonds, and it is estimated that more than one-half of all persons working ill
trade and industry have that method for buying Defense Savings bonds available to them. To discharge
our full responsibility to the Government and to the men in our fighting forces, it is essential that everY
person save something each month for investment in Defense Savings bonds and that that amount should
be as large as individual circumstances will permit.
There must not be a let-down in the sale of Defense Savings bonds! MAKE PAY DAY BONO
DAY!
@FedFRASER