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MONTHLY BUSINESS REV of the FEDERAL Volume 28, No.2 RESERVE Dallas, Texas, April 1, 1943 == DISTRICT SUMMARY The buying spree which swept over the nation in the early part of February has apparently about run its course. This applies also to the Eleventh District, although sales during the first half of March continued in substantially larger volume than during the corresponding period of 1942. The number of business failures in the Eleventh District was wlusually small during February. Due to the lack of new Treasury offerings, investments of weekly reporting banks in this district showed only small net increases during the latter part of February and the first part of March. Currency in circulation continued to expand and the circulation of Federal Reserve notes of this bank in the early part of March was $30,000,000 above that at the beginning of the curtent year. Construction activity in the district during February remained at the relatively high level of other recent months, despite a considerable decline in residential construction from the high levels of December and January. Daily average production of crude petroleum increased slightly during February, but drilling activity declined further and was less than half as large as that in the same month of 1942. The severe cold wave early in March apparently did only minor damage to truck crops and livestock, and subsequent rains in some sections of the district: partially relieved the moisture deficiency which had prevailed during February. On January 1, 1943, the number of livestock in the Eleventh District was well above that of a year earlier. BUSINESS The buying wave, which swept over the nation in the early part of February after the announcement of shoe rationing, subsided somewhat toward the end of the month and by the middle of March the buying spree, as a national phenomenon, had apparently about run its course. The abnormal volume of bUying diminished in all Federal Reserve districts during the latter part of February and the fust part of March. Throughout the five-week period ended March 14, the percentage gain in department store sales was substantially higher in this district than in any other Federal Reserve district. During February tOtal net sales at reporting department stores in the Eleventh District were 74 per cent above those during February, 1942, as compared with an increase of about 30 per cent in all Federal Reserve districts. The increase in sales over last year occurred at department stores in all reporting cities in the district, except that in one city the gain over a year ago was less than half as large as the average gain in other sections. During the fust two weeks in March, sales at reporting department stores in the dis~rict were 43 per cent and 30 per cent, respectively, above those In the corresponding period of 1942 and the gains continued to be Widespread. Although sales during the first two weeks in March continued to be substantially above those in the corresponding period last year, the buying spree in this district may be said to have spent its main force. The most noticeable increases in department store sales dur~g February, as compared with sales during the same month In 1942, both from the viewpoint of dollar volume and percentage increases, occurred in women's and misses' ready-toWear and accessories, and in all types of piece goods. Sales of this type of goods were substantially more than twice as great BANK o f w Dallas This copy is released for publication in afternoon pnpers- '1 Apn 3 as in February, 1942. The largest percentage increase occurred in sales of women's and misses' coats, the sales of which were almost three times as great as a year earlier. Large increases, however, occurred in virtually all departments. Even in the case of household furnishings, which have shown a downward trend during recent months, sales during February were 8 per cent larger than a year earlier. The sharp declines in sales of some scarce items, such as mechanical refrigerators, stoves, mechanical washers, etc., were more than offset by increased sales of other types of household appliances. Reflecting the trend toward higher-priced goods, basement store sales failed to show percentage increases proportionate to those in the main store. Although sales in basement store departments were considerably larger than a year ago, the average percentage increase in all basement store departments was 20 per cent less than the increase in main store departments. A large part of the increased buying consisted of a greater volume of cash sales. During February, cash sales, which accounted for approximately one-half of total sales, were two and one-half times as large as in the same month of 1942 and were 21 per cent above those in January this year. Total credit sales during February were 58 per cent above those a year earlier and 29 pel' cent above those in January. The increase in total credit sales was more than accounted for by a larger volume of regular account sales, since instalment sales were 8 per cent below those in February, 1942. As a result of the heavy buying during February, stocks at the end of the month were 19 per cent below those of a year earlier and 5 per cent below those at the end of January. The declines were general and with very few exceptions occurred in all departments both in the main store and in the basement store. Although there was considerable variation in the size of the declines among the various departments, in general, of course, the declines were proportionate to the increased sales. A few lines, especially the hard goods lines which require scarce ~aterials, showed the largest percentage drops from the precedIng year. The ratio of collections on regular accounts and on instalment accounts outstanding at the first of February continued at the high level of other recent months, the collection ratios being 63 per cent and 25 per cent, respectively. The demand for merchandise at reporting wholesale trade firms in this district increased slightly during January and February, but there was Ii ttle net change from the level of the corresponding period of 1942. Compared with a year ago, however, sales of reporting wholesale drug firms were 40 p.T cent larger, s:rles of grocery firms were 20 per cent larger, and tobacco sales were up 13 pel' cent. These increases were largely offset by a substantial decline in sales of electrical goods, machinery, surgical equipment and hardware. At the end of February, stocks of reporting wholesale firms averaged 20 per cent below those on the corresponding date last year, the declines occurring in all reporting classifications. Both the number of commercial failures and the liabilities of defaulting firms in the Eleventh District continued at unusually low levels during the fust two months of this year. According to Dun and Bradstreet, Incorporated, there were This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 only seven commercial failures during January and February this year as compared with 29 during the same period of 1942. The liabilities of defaulting firms this year have amounted to only $43,000 as compared with $270,000 last year. AGRICULTURE Temperatures favorable to growing crops prevailed in most sections of the Eleventh District during the last two weeks of February, but rainfall was confined primarily to the Coastal Bend during the period, and in most other sections deficiency of moisture delayed planting and held back growth on ranges and pastures. The cold wave early in March apparently did only limited damage in this district. Truck crops in the Lower Valley escaped injury, and losses in the Winter Garden and Coastal Bend areas were apparently not serious. Available reports indicate substantial loss of fruit in east and north Texas, and some loss of onions in northern counties. A few calves and lambs were lost during the severe cold, but over-all death losses of livestock were light. During the second week in March, central and north Texas received rains which partially relieved the moisture deficiency, prepared ground for planting and benefited pastures considerably. Cattle and sheep in the Eleventh District came through February in fair to good condition. Feeding of roughage and grains held shrinkage to a minimum in Texas except in the eastern and southern counties, where feeds were scarce. The shortage of cottonseed cake and meal became more acute during February, and oat pastures in the Edwards Plateau and north central counties did not supply the usual feed. Although the condition of ranges in Texas and New Mexico deteriorated during the month, ranges were providing fair to good feed at the beginning of March except in south Texas. The abundant supply of feed and the good condition of ranges during the fall of 1942 fostered an increase of livestock in the Southwest. On January 1, 1943, there were 10,677,000 head of sheep and lambs in Texas, the largest number of record, and the number of hogs was only fractionally below the alltime recorded high reached on January 1, 1921. The number of cattle and calves in the State continued the upward trend of the preceding three years and totaled 7,518,000 head on January 1, 1943, as compared with the preceding peak of 7,547,000 in 1937 and the all-time recorded high of 8,410,000 head attained on January 1, 1934. Slight declines occurred in the sheep and lamb population of Arizona, Louisiana, New Mexico and Oklahoma, but Arizona was the only one of those states to experience a decline in the number 'of cattle and calves from January 1, 1942, to January 1, 1943, and there was a substantial increase in the number of hogs on farms in Arizona, New Mexico and Oklahoma. On ; nuary 1, 1943, there were 62,000,000 chickens on f ,":ns in the five states covered in whole or in part by the Eleventh District, as compared with 53,000,000 a year before. The number of chickens on Texas farms on January 1, 1943, totaled approximately 37,000,000 fowls, as compared with 32,000,000 a year earlier and 22,000,000 on January 1, 1935. The turkey population of the five states has declined each year since 1940, and on January 1 of this year was substantially smaller than a year before, totaling 1,030,000 as compared with 1,230,000 on January 1,1942. The number of turkeys in Texas dropped from 875,000 on January 1, 1942, to 744,000 on January 1 this year. The production of wool in the five-state area was slightly smaller in 1942 than in 1941. Wool production in Texas declined from 80,250,000 pounds in 1941 to 74,994,000 pounds in 1942, although a larger number of sheep was shorn in the State in the latter year. Cash income from the Texas wool crop increased, however, rising from $29 ,692 ,000 in 1941 to $30,748,000 in 1942. As a result of a decline ill the number of goats clipped, mohair production in Texas, New Mexico and Arizona was somewhat smaller in 1942 than in 1941. Texas produced 17,856,000 pounds of mohair in 1942 as compared with 18,750,000 pounds in the preceding year. Cash income from mohair also declined in Texas, falling from $1 0,875,000 in 1941 to $8,928,000 in 1942. There were 3,465,000 goats in the State on January 1, 1943, the same number as on January 1, 1942, and a somewhat greater number than on the comparable dates in preceding years. The Secretary of Agriculture has announced that farmers may exceed their individual cotton acreage allotments by 10 per cent without being liable for cotton marketing quota penalties and without loss of conservation program payments and cotton loan privileges. Cotton marketing quotas have not been increased, and the requirement that farmers plant 90 per cent of the special war crop goals allocated to them in order to receive maximum payments under the agricultural adjustment program is retained. On February 15, 1943, many prices received by Texas farmers for agricultural products were more than 65 per cent greater than on the same date in 1940, and several, such as those for hogs, chickens and turkeys, were substantially more than 100 per cent greater. Average prices received by Texas farmers on February 15, 1943, were also considerably greater than a year earlier. The prices of hogs, beef cattle, milk cows, butter and corn were up approximately 25 per cent, and the increases in prices of butterfat, chickens, eggs, oats, sorghums and hay were even greater. Average farm prices received in Texas rose from January 15 to February 15, 1943. Substantial increases occurred in the average prices of hogs, beef cattle, veal calves, sheep and lambs, and prices of grains and other feeds increased moderately. The average price of butterfat remained unchanged ap.d the price of eggs and milk-at-wholesale declined slightly. Recent reports on planting intentions indicate that acreages of major food and feed crops will be somewhat greater in 1943 than they were in 1942, both in Texas and in the United States. Prospective acreages of peanuts, corn, sorghum and tame hay in Texas, as reported on March 1, were substantially greater than those reported at the same time last year. However, yields per acre in 1943 may not be as great as in 1942, when record yields were realized for many crops as a result of the exceptionally favorable weather which prevailed. The indicated increase in acreage therefore may not be reflected in a proportionate increase in production. Reports on breeding intentions indicate 350,000 sows farrowed in Texas this spring as compared with 270,000 in the spring of 1942. Texas turkey growers also intend to increase the number of turkeys raised to 3,798,000 birds as compared with 3,724,000 last year, in spite of a decline in the number of turkey hens on farms. FINANCE The reserve balances of member banks in the Eleventh Federal Reserve District, after declining somewhat during the first half of February, increased during the latter part of the month and rose to a new high of $509,000,000 around the middle of March. Although average reserve balances of $49 5,000,000 during the first half of March were $15,0 00 ,000 above the average for the first half of February, they were approximately the same as those during the first part of January. Due to the decline in reserve balances and a fur ther increase in customer MONTHLY BUSINESS REVIEW deposits during February, excess reserves declined $10,000,000 during the month. At the end of February, excess reserves of $134,000,000 were almost $20,000,000 below the all-time peak reached during the first half of January this year. Gross deposits of 33 weekly reporting member banks in the district, after falling off during the latter part of February and the first week in March increased $30,000,000 during the week ended March 10, on which date they were at a new peak of $1,582,000,000. United States Government deposits have continued to decline from the high level reached during the December financing period. During the four weeks ended March 10, the Treasury withdrew approximately one-third of its deposits with weekly reporting member banks in this district, thereby reducing these deposits to $62,000,000 on March 10. These withdrawals, however, were more than offset by an increase of $56,000,000 in adjusted demand deposits and by smaller increases in interbank deposits and time deposits. After rising to a new peak of $1,000,000,000 on January 27, total loans and investments of 33 weekly reporting member banks continued to increase moderately during the following six weeks. On March 10, total loans and investments amounted to $1,035,000,000, which was $19,500,000 larger than four weeks earlier. The increase continued to be accounted for entirely by larger holdings of United States Government securities, while loans continued to fall off moderately. The decline in loans during the four weeks ended March 10, however, amounted to less than $300,000. A decline of $1,300,000 in commercial, industrial and agricultural loans during that period was about offset by an increase in loans for security trading. Real estate loans, loans to banks, and "all other" loans, which include personal and instalment loans, fell off moderately during the four weeks whereas, holdings of open market paper and loans to brokers and dealers in securities registered small net gains. During the four weeks ended March 10 weekly reporting member banks continued to increase their holdings of United . States Government securities. For the past two months most of the increase in holdings of Government securities has consisted of Treasury bills and Treasury bonds. On March 10 weekly reporting member bank holdings of Treasury bills were $47,800,000 larger than at the beginning of the current year, while during the same period these banks increased their holdings of Government bonds by $25,300,000. Since the beginning of the year holdings of Treasury certificates of indebtedness and Treasury notes have both shown small net declines. On March 10 holdings of Government guaranteed securities amounted to $47,000,000, an increase of approximately $7,500,000 since the beginning of the year. Currency in circulation has continued to expand. The average circulation of Federal Reserve notes of this bank during the first half of March was $30,000,000 larger than during December, 1942, and $15,000,000 above that during February. In the first part of March, Federal Reserve notes of this bank in actual circulation rose to a new high of $276,000,000, which was almost double that on the corresponding date in 1942. CONDITION OF THE FEDERAL RESERVE BANK (Thousands of dollars) March 15, March 15, February 15, 1943 1942 1943 $398,105 $580,515 N~tal cash reserves ... .. . .. ... . ... . . .. .. ... .. . ... . $578,132 125 103 125 1 IScount& for member banks ...... ...... . ....... .. . 29 288 29 tfdustrinl advances .. . . ....... . .. . .. ..... ... . ... . . 229,850 193,710 AFtcd States Government soouritioe . . .....•. . ... .. . 8~~:~ 75 120 T lather investments ...... . .... .... ............. . 229,570 88,188 193,984 ~ otal earning assots . ... . .... . .. .... .. ... .. . .. ... . 503,388 316,625 480,507 Flember bank reserve deposits .. . . . .. ....... . ..... . 273,950 140,210 259,485 ederal Reserve notos in actual circulation . ....• .... 3 CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES (Thousand. of dollars) March to, March 11, February 10, 1943 1942 1943 Totolloou. and invoetment• . .......... . .. . . . . . . . . . $1,036,430 1695,683 $1,016,Vl3 Total loan.. . . . . . . . . .. .. .. . . . . . . .. . .. . . . . . .. . . . .. 287,203 358,836 287,495 Commercial, industrial and agricultural loans . . . . . . 208,660 255,433 209,943 Open market paper . . . . . . . . .. .. . . .. . . .. .. . . . . .. . 1,194 2,460 1,087 1,370 LOans to brokers and dealers In securities.. .. . .. . . . 1,766 4,637 Other loans for purchasing or carrying securitics.. . . 13,522 12.244 12,289 Real cstate loans . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . 18,948 21,680 19,218 Loans to banks.... . .. .. . . . .. .. . . . .. . .. .. . . . . .. . 108 391 110 All other loans . . .. . . . . . . .. .. .. . . . . . . .. . .. . ... . . 43,005 62,041 43,510 Total investments . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . 749,227 336,797 729,418 97,494 United States Treasury bills. . ...... . .. ....... . . . ; 00,276 2P:0068 United Stntes Treasury eertifieatcs of indebtedness. . 119,763 ~ ue 128,202 United States Treasury notes . . . . . . . . . . . . . . . . . . . . 105,626 41,768 104,033 United States Government bonds.... . . .. .. . ...... 308,893 163,030 290,504 46,215 Obligations guaranteed by United States Gov't .... . 47,1 51 38,169 Other seellrities. . . . ................. . . . . ....... 58,518 64,753 58,970 Reservea with Federal Reserve Bank . . .. .... . . ..... 302,693 190,187 287,527 Balanccs with domestic banks·.. . . . . . . . . . . .. . . . . . . . 293,222 302,910 202,031 878,035 Demand dcrosit~-adiu.tedt . . . . . . . . .. . .. . . . . • . . . . 984,229 645,293 Time dejloslts... . . . . .. . . . . . . . . . . . . . . . . . . .. . .•• . . . 137,860 129,582 136,668 United States Governm'ent deposita . . . . . . . . .. . . •.. . . 62,071 44,185 03,961 Interbank deposits'. . . . .. .... ...... .... .... .. .... 447,990 310,203 43~~!~ Borrowings from Federal Reserve Bank . . . . . . . . . . . . . None None 'Beginning July 8, 1942, reciproeal interbank demand balanccs rcported on net basiB. tIncludes all demand deposits other than interbonk and United S~atos Government, Ie•• c..h items reported as on bond or in proccs. of collection. DEBITS TO INDIVIDUAL ACCOUNTS (Thousands of dollars) February February Pctg.chaugc January 1943 1942 over year 1043 12,445 Abilene .. . .............. $ 14,715 $ 16,800 +18 37,171 Amarillot ........ . ...... 39,808 4'1,ii5 62,705 Austin . . . .......... ..... 68,406 +00 48,932 Beaumont ... . . . ....... . . 44,200 82,418 +37 38,263 41,059 Corpus Christit . . ... . . • . . . 4',i55 5,102 7,333 Corsieana . ........ ... .. . +23 378,936 354,138 421,033 Dalla.. .. .. .. .... .. . . . .. +7 41,911 51,028 64,051 El Paso ........ .. .. ... .. +24 139,119 109,000 155,680 Fort Worth ... .... .. . . ... +26 37,475 26,671 35,051 Galvcston ... ... ......... +41 373,434 322,120 418,220 Hou. ton ..... ....... .... . +16 8,003 0,853 Lnredo~ . . .. ... . ........ 28,001 21,888 LubboD 13,786 17,012 Monroe, .t ...... .. .. .. '13',ooi 18,740 10,870 Port Arthur . ... . ........ t44 Roswcll, N. M........... 6,122 4,665 31 7,300 11,023 12,790 San Angelot ............. 110,426 109,580 Ban Antonio .. .... .. . .... 8'0:043 +23 -5 Shreveport, La .... .. . .... 55,856 58,500 68,960 26,451 -50 Texarkana· .. .... . ..... .. 13,288 15,070 15,410 22,280 Tueson, Aril ...... .. .... 21,729 +41 12,750 14,534 13,910 ~Ier ..... ...... ... ..... 22,495 19,078 24,272 aOo .. •.... •. . ...• •. .. . tl~ 20,078 20,549 Wichita Falls ........... . 21,776 +8 Petg.ehan~ over mont -12 -7 +9 -9 -7 -80 -10 - 4 -11 +7 -11 -10 -8 -10 -3 -16 -14 +1 -10 -12 -3 -4 -7 +6 t.- .. ...... ..... - - - - -- $1,521,747 - 8 Total- 18 cities ........ . . $1,307,761 $1,204,058 +10 1,666,266 -8 Total-24 citics. ...... ... 1,528,795 'Includes the figures of two banks in Texarkana, Arkansas, located in the Eighth District. tNew reporting center ; data prior te May, 1942, not available; GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS (Average of daily figurcs- Thousands of dollars) Combined total Reserve city bonks Country bankl February, Fcbruary, Octebcr, November, December, January, February, Gross Gross dcmand demand Timc 1941 ..... .. ... $1,533,864 $241,401 $ 876,181 1042 .. . .. . .. .. 1,805,645 227,543 1,034,477 225,701 1,260,835 1042 .. . .. . ... . 2,243,675 1942 ... . .. .. . . 2,420.463 228,284 1,363,582 1042 . .. ..... . . 2,532,830 227,967 1,400,302 1948 . . . . . . .. . . 2,643,213 227,038 1,468,1 81 1043 .. ..... .. . 2,605,602 231,842 1,470,333 Gross Time demand $134,206 $ 657,688 120,490 771,168 125,667 073,840 127,281 1,056,881 128,431 1,128,528 130,904 1,175,032 134,674 1,216,270 Time $107,285 101,044 100,124 101,053 90,536 07,029 97,169 SAVINGS DEPOSITS Fcbruary 28, 1043 Beaumont .. ... . ......... Dall.. ... ... . . . ......... EIP..o ................. Fort Worth ........ ... ... Galveston . .............. Houston .. . .... . ......... Lubbock ................ Port Arthur ............. San Antonio . . ... ...•.... Shreveport, lfl. ...... .. .. Waco ..... ....... .... .. . WiDhita Falla . ....... .. .. All other . .. ...... ....... Total ........... Number of reg::rtin g anks 3 8 2 3 4 10 2 2 6 3 3 8 69 107 Number of saving8 depositors 10,650 01,038 10,042 88,026 17,757 74,115 1,001 5,069 24,880 25,572 7,348 6,687 40,540 --366,034 Percenta~e change in savings eposits from Amount of savin)!s Feb. 28, Jan.31, 1942 depOSIts 1943 $ 4,308,808 + 4.0 + .1 28,610,450 +13 .7 8,264,045 +20.2 2.S 13,709,554 +10.1 +1.7 11,380,006 + 4.5 +1.4 84,129,781 + 0. 4 + 1.0 458,086 +21.8 - 2.5 3,003,347 + .8 +U 10,860,082 +12 .0 +U 12,131,820 +1.1 + 1.2 4,644,165 13 7 +1.2 . 8,445,009 1.9 + 1.5 27,784,755 + 3.8 +1.1 t1.6 t $171,725,658 - -+ 8.8 --+1.3 MONTHLY BUSINESS REVIEW INDUSTRY The housing shortage has become critical in many communities in Texas and is reported to be a contributing factor in the high rate of turnover of personnel in war industries and a restraining influence on needed migration of workers into labor shortage areas. A substantial amount of repair and modification of dwellings is being conducted under the Government leasing plan in order to supply additional dwelling units for war workers. Construction contracts using private capital have also been awarded for a considerable number of new residential units in selected housing shortage areas in the State. The value of construction contract awards in the Eleventh District in February established a new high for the month in spite of the elimination of virtually all non-essential construction by the Facilities Review Committee of the War Production Board. Construction awards in the district during the month exceeded $79,000,000 as compared with the preceding peak for February of $43,000,000 attained last year. The value of awards for residential construction declined markedly from the level of January, and was somewhat smaller than in February, 1942. It was, however, substantially greater than the value of awards in this district in any month prior to 1941. The value of nonresidential construction awards in this district in February was approximately 12 per cent greater than in the preceding month and 140 per cent greater than in February last year. Employment in war industries in Texas continued to rise during February and the first 15 days of March. The number of employees engaged in the industries increased by 9,000 from January 15 to February 15, and preliminary hiring schedules indicate an addition of approximately 12,000 workers during the following 30 days. Estimates of the eventual peak of employment in war industries in the State have been lowered, but the industries still are expected to add 70,000 persons to their working force between March 15, 1943, and March 15, 1944. WHOLESALE AND RETAIL TRADE STATISTICS ~----Perc entage ohange in:----~ Number Net Bales Stooket-oC February, .1943 Crom Jan. 1 to February, 1943 from reporting February, January, Feb. 28, 1943 February, January, Retail trade: firme 1942 1943 from 1942 1942 1943 Departmeat etores: Total 11th Diet .. .. 46 +74 +24 +45 - 19 - 5 Dallae ........... . +74 +30 :j:45 - 17 - 7 7 Fort Worth ....... . + 80 +19 45 -12 + 2 4 Houston .......... . 7 +73 +20 +35 -30 - 4 San Aatonio ..... . . 4 +92 :j:3S +69 - t - 14 Shreveport . .. .... . 3 +20 23 :j: 6 Other cities .••.. . .• 21 +75 +16 51 -23 Retail Curniture: Total 11th Dist ... . 69 -12 +10 +3 +t Dallae .......... .. 8 +12 - 4 - t - 4 -\1 Fort Worth ...... .. - ·7 -1 3 +38 Houston .... ...... . 4 -15 -2 +18 +4 4 San Antonio .... .. . -7 +16 +10 +3 lnde~ndent stores:· -1 Amona . ... . , ... , . 165 +10 +15 Oklaboma . ...... . . 392 +S3 +11 +36 Texas .. . ... .... ... . 968 +63 +17 +37 Wholeeale '-nde:· Macl,:nery, cqp't '" s·,pplies......... 5 -52 +28 -56 Druge.<inel.liquore). 12 +41 - 4 +36 -7 EleetrJOal goode.... 3 -41 - 11 -38 - 18 - I Groceries...... .... 31 +21 + 2 +13 - 21 Hardware.. ....... 14 -16 + 5 - 17 - 3 Surgical eqp't. . . . . 4 - 3 - 13 - 9 - 4 - a Tobacco &: products. 4 + 13 + 10 + 13 ·Compiled by United States Bureau of Ceneus. tChange less than one-haU of one per cent. :Stookll at end oC month. +'2 INDEXES OF DEPARTMENT STORE SALES AND STOCKS (1923-1925 averBge= 100) February February January December 1043 1042 1043 1942 Sales (daily average): 205 108 280 Without seasonal adiustment ....... . 156 With eeaeonal adiustment . ....... . . . 241 127 204 102 Stoekll (end oC month): Without seasonal adjustment .. ... .. . 78 93r 83 73 82 97r With seasonal adiuatment . ... . .. .. . . 95 84 r-Rerued. Deliveries of petroleum and petroleum products to the East Coast by railroad tank cars fell below 800,000 barrels daily during the last week of February and the first week of March after exceeding that figure by a substantial margin during the three weeks ended February 20. However, for the four weeks ended March 6, 1943, receipts averaged 806,000 barrels daily. Production of crude oil in the Eleventh District averaged 1,532,945 barrels daily during February as compared with the all-time high of 1,767,175 barrels daily during February, 1942. Increases in daily average production, which occurred in the Texas Coastal section, west Texas and New Mexico in February, were largely offset by declines in other sections of the district. Daily average production outside the Eleventh District during the month was 6 per cent greater than in January and only slightly below the average during February, 1942. Crude oil stocks continued to accumulate in this district and on February 27 were approximately 10 per cent greater than on the comparable date a year ago. Stocks outside the district also increased fractionally during the month, but at the end of February were still approximately 22 per cent smaller than a year before. The level of drilling activity in February in the Eleventh District, as measured by daily average well completions, was slightly below that of the preceding month. Fewer than 350 wells were completed in this district during February, 1943, as compared with approximately 700 completed in the same month last year. Dry holes accounted for 45 per cent of wells drilled in tlus district during February, 1943 , whereas during the same month last year they accounted for 28 per cent. Approximately 30 per cent of the wells completed in the United States during February were in this district. Drilling activity outside the Eleventh District declined 15 per cent in February and was more than 30 per cent below the level of February, 1942. Nearly 30 per cent of the wells completed outside the district during February, 1943, were dry holes as compared with 20 per cent dry holes in February last year. In a move to expand production of cotton textiles and concentrate mill output in durable and staple goods, the War Production Board, has ordered the cotton textile industry to simplify construction of a specified list of fabrics. Approximately 20 per cent of the looms iIi the industry are affected. Cotton textile mills in the United States continued to operate near capacity on Army, Navy and Lend Lease orders during February. Cotton consumption at mills in February, which totaled 878',000 bales, was 4 per cent smaller than consumption in the preceding month but only slightly below the all-time record for February set last year. Consumption for the seven-month period ended February 28, 1943, exceeded 6,500,000 bales and established a new record for the August I-February 28 period. Stocks in public storage and compresses at the end of February totaled 12,374,000 bales and were 696,000 bales smaller than a month earlier, and slightly greater than on February 28, 1942. Cotton prices fluctuated within a narrow range during February and the first two weeks of March. On March 15, 1943, the average price of middling 15/16-inch staple cotton at the ten spot markets, was 21.02 cents per pound as compared with the average price of 20.53 cents on February 15, 1943, and the price of 19.30 on March 16, 1942. Receipts of cottonseed at Texas mills declined seasonally in February and were 40 per cent smaller than in the same period last year. Receipts of cottonseed at Texas mills during December, January and February were substantially smaller than during the same months of the 1941-1942 season. However, approximately 7 per cent more cottonseed was received during the MONTHLY BUSINESS REVIEW seven months ended February 28, 1943, than was received at t~e Texas mills during the same period last season, and productlOn of cottonseed oil, cake and meal and linters during the August I-February 28 period was substantially greater this season than last. Stocks of linters on hand in Texas at the end of February were considerably greater than on the same date last year, but stocks of cake and meal and hulls were more than 80 per cent smaller. Operations in United States cottonseed mills have followed approximately the same pattern. Receipts and production were smaller in February than in January and substantially smaller than in February, 1942, but operations during the August I-February 28 period were greater tlns season than last. Stocks of cake and meal and hulls on hand at United States mills at the end of February were substantially smaller than at the same time last year. RETAIL CREDIT SURVEY Preliminary tabulations have been made of the returns in connection with a survey of retail credit in the Eleventh Fed~ral Reserve District conducted by this bank. In addition to the I11fOrmation already available from this bank's regular series on department stores and retail furniture stores, the survey inclUded reports from more than 325 stores in the following thirteen lines of trade: automobile dealers, automobile tire and accessories stores, coal, fuel oil and wood dealers, grocery stores, hardware stores, heating and plumbing equipment dealers, household appliance stores, jewelry stores, lumber and building material dealers, men's clothing stores, milk dealers, shoe stores, and women's specialty stores. Most of the reports came from firms located in fourteen principal cities in the Eleventh District, but scattered reports were received from firms in other cities. Although the sample was not uniformly representative, a considerable number of reports was received from each line of trade and there was no undue concentration in anyone locality Or in any individual line of trade. Total sales of the thirteen lines of trade declined about 10 per cent from 1941 to 1942, but all of the decline was more than accounted for by the greatly reduced volume of sales of automobile dealers and automobile tire and accessories stores. Total sales of these two groups during 1942 were almost 60 per cent below those in 1941. In other lines of trade covered by the survey, however, average sales increased 25 per cent during 1942. Sales of grocery stores, milk dealers, and coal, fuel oil and Wood dealers were some 50 per cent greater than in 1941. On the average, the volume of business of heating and plumbing ~quipment dealers, lumber and building material dealers, and Jewelry stores ranged between 20 and 25 per cent above the 1941 level. Men's clothing stores, women's specialty stores and shoe stores generally benefited from a larger volume of business during 1942 whereas, sales of household appliance stores and hardware stores showed little net change from 1941 to 1942. ~lthough there were large variations in the experience of indivldual firms, broadly speaking, smaller stores apparently suffered most from war time changes, while larger firms in the district enjoyed a greater volume of business. In all lines of trade covered by the survey, cash sales averaged 6 per cent larger during 1942 than in 1941. Open credit sales increased by slightly less than 10 per cent, but instalment sales fell off 60 per cent during the year. It should be recalled that it is customary to finance automobile sales on an instalment basis and that the scarcity of new cars during 1942 reduced this type of instalment financing to an extremely low level. Instalment sales of automobile dealers in this district during 1942 'Yere scarcely one-fifth as large as those in 1941. In most other hnes of trade covered in the survey, instalment sales constituted a relatively small part of total sales and open account sales constituted most of the credit business. This is especially true in such lines as shoe stores, milk dealers, grocery stores, men's clothing stores, women's specialty stores, and hardware stores. Two principal factors contributed to a substantial reduction in accounts receivable during 1942. First, the high level of money income enabled purchasers to reduce their instalment indebtedness and to place their accounts on a current basis. Second, the restrictions on consumer instalment credit under CRUDE OIL PRODUCTION-(B.rrels) February, 1943 Inorens. or deorease in daily averago produotion (rom Dailyavg. Total production produotion Feh.,1942 Jan., 1943 224,234 0,278,550 - 11,504 North Tex.s ... ...... . .. ..... - 826 5,910,500 211,304 West Texas .................. - 102,033 +10,201 425,595 - 52,267 East Texas .................. 11,910,050 - 4,937 4,546,800 162,386 South Texos ................. - 07,627 - 4,834 9,006,100 321,640 + 12,771 Texas Constal .. ...... .. ...... +12,472 , Total Toxas . . ... .. North Louisiana .......... . ... New Mexioo ................. 1,345,,65 90,816 96,064 37,604,000 2,542,850 2,715,000 -220,660 + 9,916 - 23,486 1,532,945 Total Distriot ...... 42,922,450 -234,230 SOURCE: Estimated from American Potroloum Institut. weokly reports. +,2,076 - 1,197 169 + --+11,048 DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(Bales) February Febnlary Jnnuary August 1 to February 28 Consumption nt: 1943 1942 1943 This season Last season Texns mills............ 20,990 18,828 20,778 147,946 136,472 United States mills. .... 878,154 892,288 915,470 6,505,910 6,283,012 U.S. stooks-end of month: In consuming estnbm'ts. 2,528,5 15 2,582,308 2,506,639 Public slg. &: compresses. 12,373,506 12,211,947 13,069,379 STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS - - - - Texns----!f---Unitcd States--~ August I to Fobruary 28 August 1 to February 28 This season Last season This season Last season Cottonseed received at mills (tons) .................... . 998,806 936,6(11 4,334,803 3,804,856 Cottonseed "rushed (tons) ... . . 895,613 808,349 3,652,728 3,173,391 Cottonseed on hand Feb. 28 (tons) .... . .... ...... .. ... . 136,148 155,506 759,428 761,904 Production of produots: Crude oil (thousand Ibs.) ... . 258,617 233,804 1,1 20,816 080,052 356,611 Cake and meal (tons) ...... . 401,201 1,616,320 1,383,780 220,867 210,885 780,704 Hulls (tons) .. ........ . ... . 881 ,113 221,754 Linters (running bales) . .. .. . 267,156 1,009,574 930,750 Stooks on hand Fobruary 28: 14,804 42,670 Cnlde oil (thousand lbe.). . . . 11 ,342 46,680 111,178 58,800 370,288 Cake and meal (tons)....... 13,612 98,961 34,850 200,305 Hulls (tons). . . . . . . . . . . . . . . 14,983 Linters (running bales). . ... . 80,186 47,308 206,214 148,569 SOURCE: United States Bureau of Census. BUILDING PERMITS Percentago ohango Peroentage valuation from Jan. 1 to Fob. 28, 1043 v~II'~~~~n February, 1048 Abileno ....... .. . Amarillo ........ . Austin .......... . Beaumont ....... . Corpus Christi ... . Dnllas .... . . .... . EI Paso . ........ . Fort Worth ...... . Galvcston ....... . Houston .... .. ... . Lubbock ........ . Port Arthur ..... . Snn Antonio ..... . Shrevoport, La ... . Waoo .... . . . .... . Wiohita Falls ... . . No. Valuation 13 S 6,647 30 33,455 73 18,772 86 1,820,890 53 18,814 303 150,874 56 32,468 236 357,355 42 14,447 98 08,105 60 16,875 36 8,840 537 85,390 83 27,276 23 13,526 16 9,420 Totnl. . . . .. 1,835 $2,677,154 "More than one thousand per oent. Feb.,1942 Jan.,1043 - 03 + 66 - 64 - 60 - 93 + 40 +472 +" - 98 - 86 - 83 6 - 57 - 20 - 20 + 94 - 91 6 - 95 - 50 - 07 + 25 - 87 + 57 - 88 - 32 - 85 +840 - 94 - 70 - 83 + 56 - 61 +171 No. Valuation from 1042 26 S 10,652 - 95 71 116,465 - 17 131 32,144 - 94 169 1,830,717 +278 141 157,323 - 00 678 311,465 - 01 95 73,107 - 68 396 541,316 - 42 84 29,868 - 91 158 188,670 - 93 123 28,570 - 96 67 14,486 - 89 990 211,794 - 84 112 33,479 - 93 48 59,076 - 80 33 15,474 - 81 3,322 f3 ,063,606 - 73 VAWE OF CONSTRUC'rrON CONTRACTS AWARDED (Thousands of dollars) Fobruary February January January I to February 28 1043 1042 1943 1943 1042 U53,284p $ 66,100 Eleventh Distriolr-total.. S 75,360p S 42,081 $ 77,924 Residential. . . . . . . . . . . . ,6,504p 18,564 25,519 42,023p 28,669 111,261p 37,521 All other.. .. .. .. .. .. .. 58,856p 24,417 52,405 United StatcsO-total. . . . . 393,b17 433,557 360,661 744,178 750,403 204,107 270,772 Residential. .. .. .. .. .. . 93,204 168,014 110,813 All other . . . . . . . . . . . . . . 300,223 265,648 289,848 540,071 479,631 °37 States east of Rooky Mountains. P Preliminary SOURCE: F. W. Dodge Corporation. • MONTHLY BUSINESS REVIEW Regulation W of the Board of Governors of the Federal Reserve System limited the amount of credit that could be extended 011 many articles and encouraged consumers to use their larger incomes to payoff their instalment debts and to keep their regular accounts up to date, Exclusive of automobile dealers and automobile tire and accessories stores, whose instalment receivables at the end of 1942 were only 40 per cent as large as those at the end of the preceding year, total accounts receivable at all reporting firms declined 30 per cent from the end of 1941 to the end of 1942, For those firms reporting a breakdown between open credit and instalment credit business, the rate of decline in instalment receivables was almost twice as large as the decline in regular account receivables during 1942, Thus, for the year as a whole, the principal developments included the following, For most types of firms covered in the survey, except the automobile and allied lines, total sales were larger during 1942 than in the preceding year, In general larger firms enjoyed a greater percentage increase in business than smaller firms, Cash sales increased during 1942 whereas, total credit sales in most lines of trade declined somewhat, Merchandise sold on open account increased, especially at the larger stores, but instalment sales were uniformly smaller, In virtually all lines of trade and in all sizes of stores, accounts receivable at the end of 1942 were well below those of a year earlier, with instalment accounts receivable showing the principal declines, POULTRY ON FARMB-JANUARY 1 OF EACH YEAR- (Thousands) ~---Chiekens Turke~s------ Year Tex88 Eleventh Distrir,t· Tex88 Eleventh District· 1936 21,669 37,818 826 1,145 1936 23,200 39,949 764 1,088 1937 26,800 43,266 913 1,283 1938 24,600 41,167 902 1,272 1939 26,300 44,674 900 1,311 1940 28,122 47,679 1,068 1,669 1941 27,060 46,342 983 1,388 1942 31,681 63,108 876 1,229 1943 36,976 62,149 744 1,026 ·Eleventh District figures are totals for the five states wholly or partially included in the Eleventh Distriot. LIVESTOCK ON FARMS-JANUARY 1 OF EACH YEAR-(thousands) Hogs Sheep~Horses .nd Mules~ Eleventh Eleventh Eleventh Eleventh District· Tex88 District· Tex88 District· Texas District· Year Texaa 1930 6,600 11,221 1,673 3,449 6,387 10,367 1,833 3,274 1981 6,604 11,493 1,640 3,155 6,834 11,092 1,762 3,133 1932 6,890 12,082 1,890 3,960 7,212 11,619 1,718 3,032 1933 7,606 13,291 2,260 4,665 7,644 11,772 1,671 2,938 1934 8,410 14,680 2,120 4,187 8,179 12,273 1,639 2,890 1936 7,222 12,921 1,399 3,057 7,152 11,232 1,576 2,821 1936 6,861 12,138 1,465 3,098 7,369 11,147 1,512 2,739 1937 7,647 12,649 1,668 3,277 8,920 12,760 1,463 2,668 1038 7,245 12,674 1,642 3,216 9,320 13,100 1,376 2,628 1939 7,028 12,480 1,820 3,780 9,401 13,243 1,200 2,407 1940 6,817 12,468 2,293 4,030 9,606 13,461 1,236 2,316 1941 7,090 12,972 1,926 3,878 9,831 13,584 1,164 2,208 1942 7,444 13,716 2,042 4,119 10,652 14,269 1,084 2,110 1943 7,518 14,076 2,656 6,172 10,677 14,253 1,037 2,056 ·Eleventh District figures are totals for the fivo states wholly or partially included in tho Eleventh District. ~Cattle PLANTED ACRES-TEXAS-(Thousanus of acres) Indicated Actu.1 Average March, Harvest" Crop. 1032-1941 1941 1942 1912 Corn .................. . . 5,172 5,079 6,486 6,638 O.ts . .................. . 1,858 1,916 1,897 1,897 Barloy .. . ........ .. . .. .. 228 392 419 549 FI.xseed .... . .......... . 34 28 20 Rice ......... .... . .. .. .. 220 347 389 392 All sorghum ............ . 5,970 7,228 6,665 6,527 Potatoes .............. .. 52 02 63 68 Sweet potatoes . .... , .... . 04 60 57 46 Soy beans .... ... ... .. .. . 25· 17 30 46 Cow peas ........... . .. , . 476 672 668 610 Peanuts ........ . ...... . . 326 398 776 1,134 Tamo h.y .... . ....... . . . 1,145 960 1,372 1,558 Tolal. .. ...... 15,360 17,320 17,849 SOURCE: Uni ted States Department of Agriculturo. ·Short time avorage. 18,475 Indioated M.rch, 1943 5,761 1,897 571 38 408 7,249 70 72 75 580 1,a04 1,715 19,730 CASH FARM INCOME (Thousands of dollars) ~- - - - Te x . s - - - - - - - Elevonth Distri o t · - 1942 1041 1940 1942 1941 1940 Totalfarm income ........ 1,062,301 769,745 506,856 1,859,125 1,320,755 1,045,612 Crops. . . . . . . . . . . . . . . . . 534,606 385,367 263,112 933,018 051,100 462,511 Livestock .nd livestook products. . . . . ... .... 467,440 320,731 247,255 823,967 569,733 440,434 Government payments. . 00,246 63,047 86,480 102,110 108,532 142,667 Prinoipal crops: Cotton . . . . . . . . . . . . . . . . 310,104 220,431 130,047 464,508 319,552 214,039 Cottonseed ........... ~ 47,358 42,013 21,050 72,319 63,015 31,129 Food grainst.......... 67,8 10 37,503 33,050 160,000 97,907 80,878 Whe.t ... . ..... " . . . 42,405 22,368 10,965 104,242 62,021 52,117 Feed Cropst ........ . .. 23,846 21,649 15,821 47,283 38,882 30,163 Corn ................ 9,511 7,471 5,540 15,760 13,283 10,034 Oil-bearing crops*...... 12,136 6,656 5,366 19,113 9,410 7,580 11,551 6,471 5,001 16,661 8,338 6,582 Peanuts . . . . . . . . . . ... All vegetables... ....... 41,622 31,200 29,449 84,804 57,043 51,001 Irish potatoes .. .. .... 4,363 3,530 1,829 8,385 5,517 4,058 Truck crops ... " . . .. 34,213 26,191 25,413 06,451 45,115 41,430 Fruits...... ........ .. . 21,995 15,856 8,928 36,624 25,558 17,672 Citrus fruits........ . 19,226 13,127 6,540 23,759 16,381 9,136 ·Eleventh District fillures are totals for the five states wholly or parti.lIy included in tho Eloventh Distriot. llncludes wheat. rye, rico and buokwhoat. tInoludes corn, oats, barloy, grain sorghums, and h.y. *Ineludes pe.nuts, soybeans and flaxseed. LIVESTOCK RECEIPTS-(Numbor) - - -Fort Worth San Antonio - - February Fobruary Janu.ry February February January 1943 1942 1943 1943 1942 1943 Cattlo ....... .. ........ . . 42,410 38,795 42,562 12,218 15,748 15,046 Calves ............... ... 15,005 15,122 17,004 15,073 13,275 19,187 78,046 50,923 95,361 11,017 10,862 12,402 ::::: :::::: ::: 64,225 37,509 76,319 24,055 7,899 28,268 rhe~~::::: COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight) - - - F o r t Worth- - - _ - . , . - San AntonioFebnlBry February January Fobru.ry Fobru.ry January 1942 1943 1943 1942 1943 1043 Beef steers .. ... .. .... . .. . $15. 00 $12.00 $14.75 $l3.75 $11.00 $12.75 Btoeker steors .. ..... . ... . 15.00 11 .50 13 .00 .i,i :ilil 'i:i:2i; .i:i:i5 12 .75 15 .00 Hoifors and ye.rlings .. .. . 15 .00 Butcher cows .. .... ..... . 12.50 9.25 11 .50 12.25 9.00 12.00 Calves .... . ............ . 14 .50 12 .50 14 .00 14 .00 11.75 13.50 Hogs .. ........... .... . . . 15.25 13 . 10 15. 15 14 .50 12 .75 14.50 U .OO U.OO Lamb.................. . U .26 14 .00 12 .00 12.50 MONTHLY BUSINESS REVIEW APRIL 1,1943 NATIONAL SUMMARY OF BUSINESS CONDITIONS (Compiled by the Board of Governors of tho Federal Reserve Systom ) INOljSTRIAL .... "'820 .. - PRODUOTION ~tc.IIIOIWIUI'.....,.ru. .... ",.", 2 20 200 200 I 180 180 /,../ teo ) 140 120 V ) \ 100 140 ./ ItO 100 J 80 1937 eo 1938 1939 1940 1941 1942 194' Federal Reserve monthly index of physical volume of produaion. adjusted for seasonal variation, 1935-39 average :::: 100. Latest figures shown are for February, 1943. DEPARTMENT STORE SALES AND STOCKS fUUM1 180 r--r_....::-~u::.•.::_::_=H.;:_::.::.".'-'."'.NT.."'''''· ,=,u""';"=~'--r---"i ". ~e~ 160 ;--"'-+--+-- 1 - - - + - - + - -1/---1 160 140 r---j---+--f---+--+- 140 Ito r---+--+ - - I - - - + - 80 120 t::::::::::+"""'-f--+--t--; ' ':;';;''''--+--1 80 e°r-_-+_ _+_~I-_-+_ _+ _ _I-_-I60 ~~~-L_ _~_~~_-L_ _~_ _~~~40 1931 1S138 1939 1940 194 1 1942. 1943 Federal Reserve monthly indexes nf value of sales and Stocks. adjusred for seas'onal variation. 1923-25 average::::IOO. Latest figures shown arc for February, 1943. WHOLESALE PRICES ., , ruw? / Ito 110 100 I I I00 80 ~ 4, .,.. ""'" r---r OfH'I'I 90 b7l "LL. ~ll1l' 80 j 70 ''''''' ~•.JI---"'MII 60 "cmc~ 1940 194 1 1...... ' ..... ~,I./ICI ti'OOO ... 1842 50 194' Bureau of Labor Statistics' weekly indexes, 1926 average= 100. Latest figures shown are for week ending March 20, 1943. ----= t°t---+--_4-__J~~_---+----~------lto I.r-__+-~£-+----+- Lumber production, which declined in January owing largely to unfavorable weather, increased in February somewhat more than is usual at this season. Output of textile products remained at the high level of other recent mon ths. Cotton consumption was slightly lower than the corresponding month of the previous year, while rayon and wool consumption were somewhat higher than last year. Shoe production, unchanged from January, was close to the level set by the War Production Board order which limits output of shoes for civilians in the six months beginning March I to the number produced in the laSt half of 1942. Meatpacking declined less than seasonally after a reduction in January, while output of most other foods was lower. , ' Coal output rose sharply in February with the general adoption of the six-day work week in the mines. Operations in the anthracite mines increased to the high level of last summer while output of bituminous coal was the highest in many years. The value of constructioll contracts awarded in February was about the same as in January, according to reports of the F. W. Dodge Corporation. Total Federal awards for war construction remained at a level about one-third as large as during last summer. Federnl awards for housing continued to decline in February. DISTRIBUTION Department store sales increased considerably in February and the Board's seasonally adjusted index rose to a new high level of 165 per cent of the 1923 -25 average. Previous peaks had bccn 143 in January and 138 in January and November, 1942. The increase in February reflected a new buying wave that began early in the month and centered chiefly in clothin g items. In the first naif of March the buying wave subsided somewhat and sales declined from the high level reached during February. COMMODITY PRICES Prices of a number of conunodities advanced further ill February and in the early part of March. Farm products h ave continued to show the largest increases and prices received by farmers in the middle of March arc estin1ated to be about 30 per cent higher thall • YC2f ago. Fruit and vegetable prices are considerably higher .now than during the same .season last year. Price.s ?f bread g~ains and grains used for livestock feed1l1g have advanced sh arply In recent months and Iovestock pnces have also risen further. In retail markets the largest advances have continued to be in food prices. In the latter part of February maxim um levels were established for leading fresh vegetables following sharp price increases resulting in part from the rest rictions on retail sales of canned and dried vegetables and fruits. BANK CREDIT MEMBER BANK RESERVES AND RELATED ITEMS =---- Activity at steel mills reached the peak set last October. Operations averaged 98 per cent of the mills' capacity, which has bccn increased since that time to a figure above 90 million tons of ingots annually. 20 I 10 ~ A PRODUCTION Total industrial output continued to increase in February and the Boord's adjusted index rose to 203 per cent of the 1935 -1939 average as compared with 199 in January. Larger output at coal mines, steel mills, and armamen,t plants was chiefly responsible for the rise in the index. February deliveries of finished munitions, including a record of 130 merchant ships, considerably exceeded t he previous month. Freight carloadings showed more than a seasonal rise in Februory and the first two weeks of March and the Board's adjusted index averaged 4 per cent higher than in January. Large off-seasonal movements of grain continued to be the most unusual feature of carloadings. I 130 ·0 Industrial ac rivity continued to advance in February and the early part of March. Retail sales of merchandise, particularly clothing, were exceptionally large in February but declined somewhat in March. Wholesale prices, particularly of farm products, advanced further. 16 Excess reserves of member banks remained generally above two billion dollars during the first two weeks of March, compared with an average of about 1.8 billion during the latter part of Febtuary. During the fo ur weeks ending March 17 total R eserve Bank holdings of Government securities showed an increase of 470 million dollars. Purchases of special Treasury one-day certificates moderated the effect of large scale shifts of funds over the tax payment period. Theso purchases began early in March and on March 17 the certificate outstanding was 980 million doll ars. Holdings of other United States Government securities declined by 51 0 millions. Reflecting the payment of taxes in cash, mOlley ill circulation rose less rapidly early in March and declined slightly around the middle of the month. The gain in reserve funds occurred ma.i nly at banks ou~side the central reserve citi.. ; at New York City and Chicago banks reserves remamed close to reqUIrements. o~~~~~~~~~~~~~ 19~8 193' 1940 1941 1942 1943 Wednesday figures. Latest figures shown are for March 24, 1943. In the four week period ending March 17 member banks in 101 leading cities increased their holdings of Government sec urities by 920 million doll ars. Prices of Government securities continued steady. Demand dcposi ~ at banks in leading cities increased sharply over the four week period. There were also increases ill interbank deposits, indicating accumulation of funds by country banks.
@FedFRASER