Full text of Review (Federal Reserve Bank of Dallas) : April 1, 1945

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MONTHLY BUSINESS REV I EW
of the

FEDERAL

RESERVE

Dallas, Texas, April 1, 1945

Volume 30

DISTRICT SUMMARY
Frequent rains throughout most of the district .during February and the first half of March have interferred with the co~­
pletion of soil preparation and the planting of early crops, wll1c~
is already behind schedule; a period of clear, ~ry w~ather 1S
urgently needed to enable farmers to proceed rap1dl,! with ~eed­
ing operations. On the other hand, the excellent mOisture Sltuation and the generally mild temperatures ~ave s~imulated the
growth of small grains and of range vegetatIOn. Livestock have
wintered well and should gain flesh rapidly with the improvement in range conditions.

Reflecting the letting of contracts for ne,: facilities for war
production the value of awards in February mcreased over that
in the prec~ding month and was more than double .that in Feb:uary last year. Reports indicate that employmen: m ~1~ny war
~dustries is expanding and that over-all production IS. mcreaslllg. Daily average production of crude petroleum mcreased
further and was about 11 per cent larger tha~ a year ago; ~llo,:­
able production for March indicates a contmued expanSIOn 111.
output. Drilling operations are on a substantially larger scale
than a year ago. After allowance for the shor.t mo~th, cotton
consumption at Texas mills increased substantially 111. Fe~ruary
and was the largest in several months. Consumer buY111.g at
department stores increased by more than the usual amount
from January to February and was substantially larger than a
year ago. The deposits and loans and investments at weekly
reporting member banks increased during the four weeks en~ed
March 14, recovering most of the decline that occurred dunng
the preceding five weeks.
BUSINESS

Buying at department stores in this district continued in exceptionally large volume during February. Daily average sales
during the month were about 13 per cent higher than in January
and exceeded those in February last year by 20 per cent. Total
sales during the first two months of 1945 were 19 per cent
greater than those during the corresponding period of 1944.
During the two weeks ended March 17, the margin of increase
in sales as compared with a year ago has continued to widen,
reflecting in part buying in anticipation of Easter, which occurs
earlier this year than in 1944.
The aggregate stocks at reporting department stores at the
end of February were 7 per cent larger than those a month
earlier but were 4 per cent below those at the end o~ Fe?ru~ry
last year. Reports indicate that merchants are experlencmg mcreasing difficulty in obtaining certain types of merchandise to
maintain inventories in the face of expanding sales. At the end
of February, stocks of piece goods and house furnishings were
substantially smaller than a year earlier and those of many other
departments were also at a lower level. On the other hand, inventories of such items as small wares, infants' wear, and toilet
articles and drugs are sharply higher than a year ago. Sales of
women's and misses' ready-to-wear continue to show the most
pronounced gains over a year ago.
Department stores continued to collect approximately twothirds of their open accounts outstanding on the first of the
month and approximately one-third of their instalment accounts
Outstanding.

BANK

of

Dallas
Number 2

After having declined substantially in January, the sales of
reporting furniture firms increased slightly during February
and were 16 per cent greater than in February, 1944. Inventories
showed a further expansion during February but were about 7
per cent lower than on the corresponding date last year.
AGRICULTURE
Heavy rains in recent weeks throughout most sections of this
district, except in portions of southern New Mexico and Arizona, were beneficial to ranges, small grains and other growing
crops, but further delayed plowing and the seeding of spring
crops, which is considerably behind schedule in many areas.
Winter wheat, which was seeded under ideal conditions last fall,
has developed rapidly under mild temperatures and good moisture supplies, and the general condition is reported much better
than at this time last year. Range feeds and pasturage are in good
condition in all areas with ample stock water supplies available.
Livestock have wintered well and losses have been comparatively
small. The mild temperatures which prevailed throughout mQst
of the winter caused fruit trees to start growth earlier than
usual in tlus district, exposing them to danger from late frosts .
Some damage to fruit was caused in north Texas by sleet and
ice during the first week in March but losses appear to have
been comparatively light. A considerable period of warm, dry
weather is now urgently needed to enable farmers to complete
land preparation and to plant crops before the season is too far
advanced.

Above normal rainfall in most of the commercial vegetable
areas of Texas during February and the first half of March had
retarded planting and harvesting operations, resulting in only
fairly satisfactory crop conditions. Shortage of transportation
facilities and market conditions curtailed shipments o.f early
beets, brocolli, cabbage and spinach. Planting of most spring
vegetable crops made good progress and a large acreage of cantaloupes, cucumbers and watermelons has been planted in the
earliest Texas districts. Transplanting of tomatoes has started
in the early districts outside of the Rio Grande Valley and planting of potatoes is well under way. The green corn crop in the
lower Rio Grande Valley is in excellent condition and a large
acreage of sweet corn was planted in later producing areas.
Blight infestation is rather general but is not considered serious
except in the Raymondville district where some fields are a
total loss.
The citrus crop in the Rio Grande Valley developed rapidly
and the bloom this season averaged about three weeks earlier
than usual. Growing conditions have continued favorable and
.trees were holding a heavy set of new fruit at the end of February. The production of grapefruit is now estimated at 21,000,000 boxes, representing an increase of 4 per cent over earlier
predictions and 19 per cent above the crop harvested last season.
The orange crop is estimated at 3,850,000 boxes, indicating an
increase of approximately 9 per cent over the production last
season.
During 1944, a record volume of 3,475,000,000 eggs was
produced in Texas, representing increases of about 8 per cent
over 1943 and of approximately 64 per cent over the 10-year
(1933-1942) average. During the first two months of 1945,
the number of laying hens was about 10 per cent below the
same period a year ago but egg production for the period declined

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 4 per cent. Production at Texas commercial hatcheries in
CASH FARM INCOME
January was estimated at 3,300,000 chicks, which was about
(Thousands of dollnrs)
- Decemher 1044
the same as in January last year, and about 4 per cent above the
Rceeipts fromDecember
Crops Livestock'
1044
5-year (1939-1943) average. The output of turkey poults was
S 0,830
S 2,na l S 12,740
Arizona .. ... . . . . ...
much greater than during January a year earlier, reflecting an Louisiana
22,467
5,Ij06
27,072
... . ..... .... . . .
5,931
4,789
10,720
New Mexico . .. ......... .
increased interest in turkey raising.
I

' Range conditions are above average in all major areas of the
district, reflecting the favorable moisture conditions which have
greatly improved range feeds and pasture grasses. The condition
of ranges in Texas on March 1 was reported at 82 per cent, an
increase oi 1 point during February and 4 points above the
20-year (1924-1943) average. The mild weather during the
winter, together with good small grain pastures, made it possible
to handle livestock with lighter than uSllal supplemental feeding, although feed supplies are reported plentiful in virtually
all areas. Due to favorable moisture supplies, mild temperatures
and rapid growth of winter grasses and weeds, prospects for
spring grazing are goodi. The condition of Texas cattle and
calves on March 1 was 81 per cent, an improvement of 1 point
over the preceding month and 5 points over a year earlier. Cattle
in good flesh are in demand but the number being offered for
sale are few. Reflecting the favorable moisture conditions which
provided ample grass and weeds for winter grazing, the March 1
condition of Texas sheep at 85 per cent was 1 point higher than
a month earlier and 3 points above that a year ago. Lambing
started earlier in some sections than a year ago, and with ewes
reported in good flesh, a large lamb crop is in prospect. Comparatively heavy marketings of good weight lambs from grain pastures are under way, but since herds were closely culled in 1944,
shipments of grass fat sheep and yearlings are not expected to
reach last year's record volume. There appears to be little demand for stock sheep and some sheep ranches are shifting to
cattle.
The number of meat animals on farms and ranches in the
Eleventh District and in the nation as a whole decreased during
1944, due largely to the record slaughter, resulting from the
heavy demand for all types of meat and a close culling of herds.
The tight feed situation during the first hal£ of 1944 and the
less favorable relationship existing between livestock prices and
feed prices contributed to the heavy marketings of livestock but
the feed situation improved considerably during the latter part
of the year and is now much more favorable than a year ago.
'NUMBER AND VALUATION OF ALL CATTLE IN TEXAS, JANUARY I
WI

IONS

.

'"
20

-- -

1910 1945

•

~: WJ/tt\
/ /

10

I

8

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6

NUMBER

"-:(

loll LItIH

~,,,w.,,~
W
+H
/

/

\+~
\;

I'IF 001

JL

400

/

/

...... ,.....

/ . . r+-

zoo
160

......

120

I
'--1

4

80

3

60

2

4o

1

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12.

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IIUO

20

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19"0

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SOIJIICE UNlTI!D STA TU DtPAATM[N T 0' AORICUl. lURe
' 1IO •• iZO VA LUAl lON I!STI MATEO 'filOM AlTERNATIVE 5OUPC[

The United States Department of Agriculture reported that
the number of cattle, sheep, hogs, horses and mules on Texas
farms and ranches on January 1, 1945 was smaller than a year
earlier, 'but the number of goats showed a further increase.
Marketings of cattle and sheep during 1944 reached record proportions and resulted in substantial reductions in numbers. The

•••

'

14,010
72,893

Okillhomn .... . .....•.. ..
TexllS . .. . . ..... . . .. . .. . .

16,047
36,568

Totnl receiptsl -- - - Deoember Jan. 1 to Dec. 31
1043
1044
1043
S 15,088 S 121,136 S 128,735
30,148
237,802
233,422
O,06n
100,890
106,877
30,057
30,514
471,034
384,481
100,461
07,178 1,208,808 1,103,020

Totnl. ...... . . $126,040
$65,810 $101,850 $1 81,001 $2,140,369 $2,017,435
' Ynoludes receipts from the sale of livestock nnd Iivestoek products.
SOURCE : United States Departmeat of Agrioulture.
LIVESTOCK RECEYPTS-(N urober)
- -ForI Worth- - - - - - S O n Antonio - - Fobruary Februnry January Febru",y February January
1045
1944
1945
1045
1044
1945
62,892
17,503
13,837
20,034
36,824
Cattl o.. . . .. .. .. .. .. .. .
38,271
15,570
16,300
22,775
15.334
30,605
Cnlvcs ... ....... . " .... . · 21,450
70,147
6,867
13,703
14,138
108,520
35,121
03,063
18,560
11,594
23,052
. :::::::::::: :::::
-

~hoe~~:

~~:~~~

LIVESTOCK ON FARMS, JANUARY I, 1944 AND 1945
N umber-(Thousands of hend)
~- TexllS
Five States' -~-United Stat<l81944
1945
1044
1045
1044
1045
576
550
1,268
1,244
0,302
8,807
Horses lind colts . . ....... .
400
372
706
667
3,531
3,408
Mules and colts . . .... . .. .
7,745
7,500
14,606
14,360
82,364
81 ,760
All cattl o nnd calves .. .. . .
1,593
1,503
2,004
2,985
27,656
27,785
Milk co\Vst ..... . ... .. .
3,106
2,010
5,801
3,964
83,852
60,660
Hog." including pigs ..... .
10,803
10.001
13,721
13,178
51,760
47,945
All sheep and lambs ..... .
3,500
3,316
G oats ~ ..... ... . . ..... .. .
Total, above species . .
Chickens ... . .. ....... . . .
Turkeys . .. ... ...... .. .. .

25,506
38,405
848

24,131
33,072
856

36,105
64,280
1,133

38,422
56,477
1,100

Vnluntion-(Thousands of dollnrs)
Horses and eolts ... . . .... . $ 35,024 $ 30,713 S 73,078 S 65,041
36,008
20,597
67,002
5~,573
Mules nnd colts ......... .
376,241
721,888 723,034
All enttle and calve• .. . ... 386,922
108,545
200,720 202,887
Milk oowst . . ... .... . . . 108,324
36,li85
32,182
64,276
58,400
Hogs, including pigs ... . . .
61,776
60,673
87,621
84,311
All sheep nnd lambs .. .. . .
14,425
15,050
Goats ~ . ....... . .. . . . . . . .

230,818
576,441
7,572

202,670
511,130
7,401

732,865
505,710
5,661,007
2,822,040
1,470,533
451,383

S 576,640
' 453,581
5,505,410
2,758,870
1,262,057
411,220

Totnl, above species . . $570,780 5544,456 $1,014,765 S989,868 58,821,588 S8,208,017
38,880
34,651
66,204
59,613
675,408
616,445
C1hickens . ... .. . .. . ... . . .
3,646
4,152
4,829
5,346
40,001
48,075
Turkeys . . .. . . . .. ..... .. .
Total farm vnlue, including
chickens nnd turkel's.... 613,306
583,250 1,085,708 1,054,327 0,537,087 8,868,437
' TexllS, Arizonn, Louisiana, New Mexico, and Oklaboma. tCow8 nnd heifers 2 yenrs old
nnd ovor kept for milk, included ill "All cnttle and OIIlves." ~Goata numbers and value shown for
TexII" ollly, lind not included in U. S. totals. Estimates for Arizona, Louisinna, New Mexico,
nnd Oklahomn 1I0t avnilnble.
SOURCE: Ullit~d Stnte. Depnrtmellt of Agriculture.
COMPARATIVE TOP LIVESTOCK PRICES
(Dollara per hundred weight)
- - - F o r t Worth,- - - - - - Son Antonio - - February Februnry Janunry February Fobrunry January
1945
1944
1945
1045
1944
1945
515.25
516.00
$15.00
514.50
$14.00
Bcof steeN! ...... ... .. ... . $16 .35
13.50
l4.00
13.00
Stocker steers . . ... . . .. . . .
.i5:00 . j.j:50
14.25
Heifers lind yenrlings .... .
16 .00
15.00
15 . 25
12 . 25
12.00
11 .50
13.00
12.00
12.75
Butcher cO\VS ... . .... .. . .
14.25
14.25
14.25
14.50
14 .00
Cnlves ... .. . .... . . . . . . . . -14.50
14.55
13.55
14.55
14.55
13.65
14.55
Hogs . ........ . .. ... . .. . .
13.85
15.00
14.50
15.25
15.50
15.00
Lambs ................. .
COTTONSEED AND COTTONSEED PRODUCTS
~---Texns
United Statcs--August 1 to Februnry 28
Augnst 1 to Februnry 28
This sellSon
LaIlt season
This ROlISon
LaIlt SCIISon
Cottonseed reoeived nt mills
4,087,220
3,816,827
888,703
003,761
(tollS) ...... .. ... . ... . .....
3,131,825
3,237,728
803,785
680,483
Cottonseed erushed (tons) . . ...
Cottonseed on hand Feb. 28
1,067,151
667,875
120,677
254,924
(tOilS) . ... . ...... . .........
Produetion of products :
1,004,891
230,081
06M22
206,508
Crude oil (thousand Ibs.) . .. .
1,497,920
370,195
1,436,878
321,146
Cake nnd mo.11 (tons) . ......
188,870
725,460
755,316
Hulls (tons) . . .. . .. . . ......
158,950
240,630
015,300
064,351
200,208
Linters (running bllles) ......
Stocks on hand Feb. 28:
12,262
42,654
47,684
12,061
Crude oil (thousand lb•.) . ...
69,414
15,571
94,327
22,516
Cake nnd menl (tons) .......
5,310
10,595
50,826
Hulls (tons) ..... ..... .....
18,489
207,320
81,026
113,177
34,492
Linters (running bales) ......
SOURCE: United States Bureau of Census.
DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(Bales)
January Au~ust 1 to February 28
February
Fehruary
1045
TillS sellSon Last season
1044
1945
Consumption nt:
16,161
121,459
108,885
15,536
15,971
Toxas mills . . ..... .
5,658,740
5,002,178
811,062
849,945
781,550
United States mills.
U.S. • tocks-end of mOllth:
In consuming estabm'ts... 2,278,O.~2
2,350,819
Public stg. & compresses .. 12,400,392 11,521,058

MONTHLY BUSINESS REVIEW
most drastic reduction, however, in Texas livestock numbers
was in hogs, with the number reported on January 1, 1945 being
more than 1,000,000 head, or 35 per cent, less than on the same
date a year earlier. The reduction reflected primarly the decrease
in pig production which was 1,733,000 smaller in 1944 than
in 1943.
Due to generally favorable conditions in Texas during 1944,
death losses of cattle and calves were comparatively light and
as a result of close culling and selling off of old cows, cattle on
hand tlllS year are of better grade and quality than those in
earlier years. Sheep herds were also culled closely in both 1943
and 1944 and the total inventory on January 1, 1945 was estimated at 10,091,000 as compared with 10,363,000 on the same
date a year earlier, representing a decline of approximately 3
per cent.
On January 1, 1945, the total farm value of all Texas livestock, including clllckens and turkeys, was estimated at $583,259,000 as compared with an inventory value on January 1,
1944 of $613,306,000, representing a decline of 5 per cent.
Despite this decline, the present inventory value of Texas livestock is more than 50 per cent above the 10-year (1934-1943)
average.
. After having increased steadily from 1938 through 1943,
lIvestock numbers in the nation as a whole dropped during 1944
and on January 1, this year, were below either of the past two
years. Moreover, the aggregate value of livestock in both the
Eleventh District and the nation as a whole was smaller on
January 1, 1945 than a year earlier due to the general reduction
m numbers and the further fact that, with the exception of
hogs, the average value per head of all livestock was lower this
year than last.
Farm prices received by Texas fanners and ranchers during

~ebx:uary, as reported by the Department of Agriculture, showed

slgruficant increases for beef cattle and lambs and moderate
increases for grapefruit, sweet potatoes, chickens, feed grains
and wool. Prices received for such items as wheat, cotton and
Cottonseed, peanuts, butterfat, hogs and sheep were at about
the same levels as in January. On the other hand, moderate
declines were indicated for milk and eggs. With the exception of
feed grains, hay and eggs, prices received for most farm products
were above the levels obtaining during February last year.
FINANCE
The upward trend in the reserve balances of member banks
in this district was halted temporarily in February when average
balances declined about $12,000,000, but the rise was resumed
dUring the first half of March. In that period, average reserve
balances were at a new peak of $635,800,000, which was $29,200,000 higher than the February average and $120,000,000
above that in March last year. During February, the gross deposits of member banks declined moderately, since the decline
1U the Treasury's war loan deposits at banks was only partially
offset by a rise in private deposits. Due to this rise in private
deposit, the average required reserves of members banks increased
moderately and as average reserve balances declined, there was a
substantial decline in the excess reserves which dropped to the
lowest level since last October.
The circulation of Federal Reserve notes of this bank, which
~howed little net change during January, rose substantially durIng February and remained at the high level during the first
ha~f of March. Total circulation of $556,000,000 on March 15
this year was approximately $10,000,000 higher than at the end
of 1944, corresponding closely with the dollar increase that
occurred during the same period last year. The rate of expansion,
however, was somewhat smaller than a year ago and was lower

8

than the rate of expansion in the circulation of Federal Reserve
notes of all Federal Reserve banks.
The deposits of weekly reporting banks, which had declined
sharply from the middle of January to the middle of February,
increased by $63,900,000 during the four weeks ended March
14. Although Government deposits showed a further decline of
$44,200,000, all other classes of deposits increased substantially.
These banks utilized the increase in deposits to expand loans
and investments by $20,100,000 and to add $23,200,000 to
their reserves with the Federal Reserve Bank and $21,400,000
to their balances with correspondents.
The total loans of these banks, which followed an irregular
downward trend during the first two months of the year, increased substantially during the first half of March and are
now at approximately the same level as at the end of 1944. The
net increase of $7,900,000 during the four weeks end:ed March
15 consisted chiefly of $2,300,000 in commercial, industrial,
and agricultural loans and $5,500,000 of "all other" loans.
Commercial, industrial, and agricultural loans, which normally
decline during the first half of the year, have fluctuated within
relatively narrow limits thus far in 1945.
Du.ring the four week period between February 14 and
March 14, these banks made net additions of $12,200,000 to
their holdings of investments and made substantial shifts in
their holdings of various classes of securities. The largest shift
represented a reduction of $51,800,000 in holdings of Treasury
notes and an addition of $72,200,000 to holdings of certificates
of indebtedness. A considerable part of this shift represented
the exchange of maturing and called Treasury notes for a new
issue of certificates of indebtedness. Holdings of Treasury bonds
were reduced by $11,400,000 following a period in which holding~ had expanded substantially. Holdings of Treasury bills,
whIch had reached the lowest level in two years toward the end
of February, increased moderately during the first half of 1'.1arch.
INDUSTRY
Reflecting the effect of recent War Production Board app.rovals covering essential construction, the value of construc~lOn contracts awarded in this district, after declining sharply
III January, resumed an upward trend during February. The
aggregate value of awards, amounting to $17,855,000, was
about 17 per cent above that in the preceding month and more
than double that for February, 1944. WillIe non-residential
con.struction showed a sharp increase over February, 1944,
whlch was relatively low, the value of awards for all other types
of construction was lower than in the same month last year.
Moreover, in February, 1945, the value of awards for residential
c,onstruction was smaller than in any corresponding month
Slllce 1933 and 94 per cent below the record volume in February,
1942.
Increased military demands have resulted in a marked reduction in the supply of all types of construction materials with
the exception of cement and concrete products. The lumber
supply is extremely critical due to a drop in production brought
abo~t by difficulties in obtaining logging and transportation
eqUlpment, shortage of manpower and tires, and unusually bad
weather that has prevailed in the major lumber producing regions. As war demands for lumber and steel are expected to
increase, the War Production Board has ruled that even for
authorized essential construction, extreme caution must be
exercised in specifying the use of these materials. Production of
553,000 barrels of Portland cement at Texas mills during January was about 50,000 barrels above the output for December
and the largest since September, 1944. Shipments of cement in
January increased sharply over the preceding month but as

4

MONTHLY BUSINESS REVIEW

production in recent months has exceeded shipments, stocks at
the end of January had increased to 1,050,000 barrels, the largest
since February, 1944.

The step-up in production of west Texas crude oil, is to increase
the movement of crude oil to West Coast refineries where it is
urgently needed. The immediate goal is to increase the current
Cotton consumption at United States textile mills reached a , movement of west Texas crude oil to California refineries from
record rate of approximately 1,000,000 bales in April, 1942, but 14,500 barrels daily to 20,000 barrels daily and to eventually
since that date, despite the greatly increasing military and increase the movement to 42,000 barrels daily, provided transcivilian requirements and the concerted efforts of several gov- portation facilities are obtainable.
ernment agencies to maintain output at high levels, the general
Despite the near record production schedules being mainconsumption trend has been downward. Although total cotton tained, stocks of above ground crude oil in this district declined
consumption during February of 781,500 bales was 8 per cent approximately 2 per cent during February and' the 119,256,000
below that in January, and about 4 per cent under that in Feb- barrels on hand at the end of the month was about 6 per cent
ruary last year, daily average consumption in February increased below the stocks held at the end of February, 1944. Stocks outsubstantially and was at the highest level since November, 1943. side this district amounted to only approximatelY' 99,00@,000
Total consumption for the first seven months of the 1944-1945 barrels at the end of February and were 10 per cent smaller than
season was 4 per cent or approximately 241,000 bales less than a year earlier.
in the same period last season.
Drilling activity, as measured by total well completions, was
The War Production Board recently announced that good
progress had been made in stepping-up the production of vitally
needed cotton duck for military use but that the greatly expanded military requirements for textiles and textile products,
coupled with continued labor shortages and inventory' depletions, have resulted in a serious reduction in the total textile
supply for civilian consumption. Continued efforts are being
made to divert a substantial proportion of the remaining available supply of cotton textiles to producers of the most essential
items of everyday wearing apparel for all age groups, at prices
that normally meet the greatest demand.
Cottonseed receipts at Texas cottonseed oil mills during February totaled 35,000 tons, or about 53 per cent less than in the
preceding month but were more than three times the reecipts in
February a year earlier. Shortage of manpower necessary to
process the cottonseed is reflected in an average decline of about
24 per cent in the volume of cottonseed crushed and in the
production of cottonseed products. Stocks of cottonseed ,on
hand at the end of February totaled 255,000 ton, as compared
with 130,000 tons held at the same time last year. Stocks of
linters and crude oil were less than a year ago due to the continued heavy demand for these products. On the other hand,
stocks of hulls, cake and meal were much larger than at the
same time last season as supplies of grain sorghums and other
supplemental feeds have been much more plentiful.
Production of crude petroleum in the Eleventh District increased further in February and the daily rate of 2,320,000 barrels was approximately 11 per cent above that for February last
year. Production of crude oil outside this district also increased
slightly above January levels and was approximately 6 per cent
above the production in February, 1944, reflecting the continued
increase in production activities on the West Coast.
For the second consecutive month, the Petroleum Administration for War has certified all-time high production schedules
for the various oil producing states with a daily average crude
production rate for March of 4,756,800 barrels, representing
an increase of 36,550 barrels daily over that for February, the
previous all-time high. The March certification for Texas calls
for a daily production rate of 2,31 0,000 barrels of crude oil,
representing an increase of 20,000 barrels daily over the previous
month; the increase to come entirely from west Texas fields.

at a much higher level in the Eleventh Federal Reserve 1i)istrict
and in the nation as a whole during the first two months of 1945
than during the same period in 1944. Approximately 1,300 wells
were completed in this district during January and February of
this year as compared with 880 wells during the first two months
of 1944. Dry wells were encountered in about 40 per cent of
the completions during the first twO' months of 1944, as compared with 35 per cent for the same period this year. The greatest
drilling activity in this ,district during the first two months of
1945 was concentrated mostly in proven territories in west
Texas, north Texas and south Texas fields. The Petroleum Administration for War has arranged! to increase the supply of
tubular steel so vitally needed in drilling operations, and the
present daily average of 20 well completions is expected to increase during the summer months.
Readjusted war production programs, drastic changes in design, delays in obtaining new machinery and manufacturing
equipment, and shortages of trained employees have caused some
lags in Texas industrial production in recent months, but the
over-all output has apparently been expanding. To,tal employment in the principal war industries was maintained at about
the same level during January this year as in the last few months
of 1944, although there has been considerable shifting from
plant to plant. Urgent demands for munitions since last June
imposed new pressures on ordnance plants in Texas and the
number of employees at these plants has increased during the
past seven months with further additions to working forces
scheduled as plant facilities are expanded. In January, employment at petroleum refineries and at chemical and rubber plants
was above that in December and resumed the upward trend
which first became pronounced in May, 1944. Slight increases
were also indicated in the number of workers in duck mills,
machinery, iron and steel plants. On the other hand, employment at aircraft plants continued the decline which has been
in evidence during the past nine months, due largely to increased
productivity of wo·rkers and the severe cut-back in aircraft
production, but indications are that an increased number of
workers will be needed within the next three months. Further
declines are indicated for employment in shipbuilding and in
the lumber industry. Although civilian employment at military
establishments, which had been well sustained in 1944, declined
in January, there seems to be a need for additional workers.

MONTHLY BUSINESS REVIEW
APRIL 1, 1945

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(ComIllled by the Board of Governors of tho Federal Reserve System)

~

...,

240

""~L~ _ ' " , l I l t , "·101

/\

,

Ii

220

too

V

leo
160

J

140
120

"""

/

1157

1858

1938

1940

..0

prices generally showed little change.

.20

INDUSTRIAL PRODUCTION
The Board's seasonally adjusted index of industrial production was 235 per cent of the 1935-)9
average in February, as compared with 234 in January and 232 in the last quarter of 1944.

160
180

/

80

of department store sales was one-fifth greater than in the same period lost year. Wholesale commodity

200

/
IV

)

.:1.

100

/

Industrial activity continued to increase slightly in February and the early part of March. Value

..."0""

INDUSTRIAL PRODUCTION
"""~VOUI'"

200

194 1

1942

1043

140

Steel production, which declined further in the first part of February as a result of continued

120

severe weather conditions, showed a substantial increase at the end of the month and in the first three

100'

weeks of March. Average output of open hearth steel during February was 2 per cent above rhe January

eo

rate, while electric steel production increased 7 per cent. Outpu~ of nonferrous metals continued to

1944

Federal Reserve index. Monthly ligures, larest
shown is for February, 1945.

rise slightly in February, largely reflecting increased military demands. Activity in the machinery and
transportation equipment industries was maintained at the level of the preceding month; a decline in
shipbuilding offset a slight increase in output of most other munitions industries. Production of lumber

DEPARTMENT STORE SALES AND STOCKS

and stone, clay, and glass products in February was at about the January level .

...."'. "",-"__ _u"",,,,""""'"'IM
,I),

:\
lI-r\

180

!
160

120.

~

100

ES:

80

~N~II

eo

JP rtt V

,,~uA
140

200

fI,V \

r\~~~
nocKi

~..(',J)

I
I

ing establishments continued to decline, as pork and lard production dropped further and was 50 per

40

cent below the peak level reached a year ago. In March it was announced that supplies of meat available

20

for civilians in the second quarter of 1945 would be 12 per cent less than in the first quarter. Activity
in rubber products industries in January and February was 6 per cent above last autumn, reflecting
chiefly a sharp increase in production of military tru.c k tires.

eo

I
1938

ago. Output of explosives and small arms ammunition showed further large gain5. Activity at meatpack-

60

100

V"" .

r,
In?

Production of most nondurable goods showed little change in February. Output of cotton goods
and shoes, however, rose 5 per cent from the preceding month to a level slightly above that of a year

1939

1940

1941

1942

1943

19 44

Federal Reserve indexes. Monthly ligures, latese
shown arc for February, 1945. .

Minerals output rose slightly in February, reflecting increased output of anthracite and a further
gain in crude petroleum production. Anthracite production recovered in February and the first two
weeks of March from a large decline during January. Bituminous coal production showed little change
in February from the January level and declined slightly in the early part of March.

WHOLESALE PRICES

DISTRIBUTION

140 r - - t - -- i - - - i - - - l

140

Departmen.t store sales in February, which usually show little change from January, increased
considerably this year. Value of sales in Fobruary and the first half of March was 22 per cent larger

r UM Ililloouc r~",-

120

___1/_~~.v'
1 Vi

t - - - I - -- I

than in the corresponding period a year ago\ reflecting the earlier date of Easter this year and continua-

Ij

tion of the freer spending in evidence since the middle of 1944.

,-.J. _ ."IAt.LGOlOoIOOITIU

1001----11-_

--+-_....lr"-

:~--"--oiiii;';"--"-

0

- 1 - - - 1 - ---\---1 'eo

Freight carloadiogs, which had declined at the end of January and the early part of February
owing to severe weather condition5, have increased since that time. Shipments of miscellaneous freight
were in larger volume in the five-week period ending March 17 than in the corresponding period of

60

'-1----~----·~--~-----+_---1ro
1939

1940

19 41

1942

1943

1944, while loadings of most other classes of freight were less.
BANK CREDIT

1944

Bureau of Labor Statistics' indexes. Weekly ligures,
latest shown arc for week ending March 17, 1945.

Treasury expenditures during February and the first half of March continued to increase the
total volume of deposits and currency held by the public. Adjusted demand deposits at weekly reporting
banks in 101 cities increased 1.4 billion dollars and time deposits rose about 200 million dollars during

.

OOVERNMENT SECURITY HOLDINGS OF BANK~ IN LEADING OITIES

' 'I,\''H''''''' U~'

the four -week period ended March 14. Currency in circulation increased) 50 million dollars over the
same period, but declined somewhat in the week following. To meet the resulting increase in required
reserves as well as the currency drain, Federal Reserve Bank holdings of United States Government

20r----4----~----4_----+---~1-~~1

I.r----+----+---~~--_t-F--+---~

securities increased 395 million dollars in the four weeks ended March 14, while reductions in nonmember and in Treasury deposi ts at the Reserve Banks supplied 410 millions of reserve funds to
member banks. Excess reserves have remained at an average level of about a billion dollars.
The increase in Federal Reserve holdings of Government securities roughly paralleled the decline
in commercial bank holdings. Reporting banks reduced their portfolios by 260 million dollars in the
four weeks. Holdings of Treasury notes declined by 1.7 billion dollars while certificate holdings
increased by 1.4 billion dollars, reflecting the March 1 Treasury exchange offer. Bill holdings were

1939

1940

1941

1942

19 43

1944

Excludes guaranteed securities. Data not available
prior to February 8, 1939; certilimtes first reported
on April 15, 1942. Wesdnesday figures, latesl shown
are for March 14, 1945.

reduced by 210 million dollars. Bond holdings, however, continued to increase. Total loans for purchasing and carrying Government securities declined by
1 8 5 million.

2) 0

million dollars and comm.ercial loans by

MONTHLY BUSINESS REVIEW
CONDITION OF THE FEDERAL RESERVE BANK
(ThouStlnds of dollars)
March 15, March 15,
1045
1044
5557,800
Total cash reserves ..................... ....... .. . $5 15,654
2,422
346
Di,counts for member banks ...................... .
12
Indu,trial advances ........................•......
None
710,604
430,324
U. S. Government securities ...................... .
432,758
711,040
Total earning asset.............. . . . ........ . .... .
527,764
634,630
Member bank reserve deposito .................... .
426,240
555,047
Federal Reservo Notes in actual oirculation ......... .

Fcbruary 15,
1045
$533,697
275
None
660,274
669,549
608,005
547,326

CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS
IN LEADING CITIES
(ThouStlnds of dollars)
March 14, March 15, February 14,
1045
1944
1045
Total loans and investments ..... .. . . . . .... .. ...... $1,670,458 $1,408,020 SI,659,374
Total loans.. ................... ...............
412,451
337,808
404,517
Commorcial, industri"I, lind agriculturallo.ns . ...
274,200
226,846
271,896
Loans to brokers and dealers in 'ccurities..... . . .
4,387
5,276
3,302
Other loans for purcbasing or carrying securities..
52,139
38,488
52,158
Rcal estat.loans....... . .. ...... ........ .....
21,630
18,071
22,485
Loans to blinks...... .. .... .. .. .. .. . . . .. . .. .. .
120
100
130
All othcr loans.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .
50,048
48,208
54,447
Tot.1 investments. . .. .......... ................ 1,267,007
1,065,131
1,254,857
U. S. Treasury bills.................... .......
72,750
98,072
65,245
U. S. Treasury certificates of indebtedness...... .
388,320
267,042
316,141
U. S. Treasury uoles... .. .... . . .. .. .. . . . .. . .. .
221,241
100,404
273,046
U. S. Governmcnt bonds......................
528,880
42 1,183
540,243
Obligations guaranteed by United States Gov't. .
0,081
40,435
14,201
Other securities..............................
45,826
47,095
45,081
ne.erves witb Federal Reserve Bank....... .. .. .. . . .
360,443
208,078
337,268
Balances with domestic banks......................
236,012
207,225
215,534
Dcmand deposits-adjusted"...................... 1,252,311
1,043,176
1,163,155
Time deposIts......... .............. .............
226,464
170,705
220,588
210,013
208,068
255,162
United States Governmcnt deposits............ .....
Int<lrbank deposits................................
51~J145
42~J700n5e
502,002
Borrowin~s from Federal Reserve Bank.............
NOlie
N
None
"Includes all demand deposits otber than interbank and United States Government, less
cosh items reported os on hand or in process of collectioll.
DEBITS TO INDIVIDUAL ACCOUNTS
(Thousands of dolini'll)
January
Fcbruary Potg.chango
February
1045
over yoar
1944
1045
20,088
-10
Abilene ................. S 17,213 $ 19,128
47,780
40,673
41,037
+3
Amarillo ............... .
102,109
-22
70,400
61,833
Austin ................. .
64,572
56,077
57,087
Beaumont .............. .
t
57,878
43,450
48,617
+12
Corpus Cbristi ......... ..
- 16
7,082
6,185
5,200
Corsicana .............. .
633,803
-6
546,209
510,804
Dall." ................. .
71,484
62,053
-4
50,383
E1 Paso .............. .. .
227,576
100,510
227,965
+20
Fort Worth ............. .
-21
45,200
47,267
37,267
Galveston ............. ..
588,434
470,857
503,157
+5
Houston ................ .
-12
12,301
11,001
10,622
Laredo ................. .
38,395
- 1
30,522
30,166
Lubbock ............... .
21,869
-8
18,503
17,106
Monroe, Ln ............. .
24,270
- 10
24,060
21,610
Port Arthur ............ .
0,630
-26
10,580
7,797
Roswell, N. M .......... .
18,160
12,706
13,000
+0
San Angelo ............. .
163,360
130,400
140,730
+1
San Antonio ............ .
06,455
-6
78,004
73,172
Shreveport~ Ln... . ... : ..
22,158
18,754
10,324
+3
Texarkana ............. .
33,000
27,811
83,420
+20
Tucson, Aril . . .......... .
25,402
20,729
21,420
+3
32,165
25,010
25,300
+1
32,425
25,385
26,550
+5
Wichita Falls ........... .

+

~~~~:::::::::::::::::::

~~~~.:~~~
- 18
-12
-39
-12
- 16
-27
-19
- 17
+t
-18
-14
-15
-21
-22
- 11
- 10
-23
-14
-24
-18
+1
-16
-21
-18

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Average daily figures-ThouStlnds of dollars)
Combined tolai
Reserve eity banks
Country banks

February
February
October
November
December
Janull\'Y
February

'rime
$231,843
274,586
324,328
333,158
338,689
345,591
354,586

Gross
Gross
demand
Time
Time
demand
$1,470,333 $134,674 51,210,270 $ 07,160
1,698,420 160,105 1,578,698 105.481
1,020,004 203,702 1,785,138 120,536
1,077,205 210,317 1,867,180 122.841
2,066,046 213,060 1,057,882 125,620
2,000,671 218,338 2,014,075 127,253
2,020,660 224,548 1,006,002 130,038

SAVINGS DEPOSITS
February 28, 1045
Number of

3
3
3
58

depOSIts
$ 6.430,568
52,071,707
16,164,352
24,507,487
16,346,474
52,633,502
555,087
4,410,147
32,5GO,760
10,754,642
6,162,020
4,056,100
30,603,717

105

428,339

$276,255,662

re~rting

Beaumont ...............
D.llas . ......... . .. .. · ..
EI Poso .................
Fort Worth ..............
Galveston . ..............
Houston .................
Lubbock ....... .........
Port Arthur .............
San Antonio .............
Shreveport, La ........••.
W.co .................. .
Wichita Falls ............
All other ................
'fotal. ........

anks
3
8
2
3
4
9
2
2

5

savin~s

+' 6

:":'is

-

INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Daily average sales -(1035·1039 - 100)
Unadjusted H
Adjusted
Dec.
Feb.
J ail.
Feb.
Jan.
Dec.
Feb.
1044
1945
1945
1044
1044
1045
1045
201
263
Distriot .....
211
421
200
283
238
242
207
269
245
Dallos ......
248
210
309
241
256
206
193
412
200
Houston ... ..
231

Feb.
1044
241
228
260

UnadJusted t •
Jan.
Dec.
Feb.
1944
1045
1045
91
Distriot .. ...
08
05
"Unadjusted for seasonal variation.

February 1045
Abileno . ........ .
Amarillo .........
Austin .... .. .....
Bealllnont ........
Corr,us Christi ....
Dal as .... .......
EI Paso ..........
Fort Worth .......
Galveston ........
Houston ..........
Lubbook .........
Port Arthur ......
San Antonio ......
Shreveport, Ia ....
Waco ....... .. ...
Wiohita Falls .....

Valuation
No.
15 $ 15,220
82
111,088
107
192,027
127
82,475
130,041
180
203,000
665
45
20,506
228
387,732
51
66,004
267 1,119,644
137
177,906
17,318
58
783
422,304
220,101
101
100,333
51
28
10,937

-----

Total ...... 2,015 $3,387,606
"Over 1,000 per cent.

Feb.
1044
97

Feb.
1045
102

Jan.
1045
100

Adjusted-. - -Dec.
Feb.
1044
1044
104
101

BmLDING PERMITS
Percentage ohange
Percentage
valuatioa from
Jlln. 1 to Feb. 28, 1045 chan~e
- valuatIOn
Feb.10U Jan.1945
No.
Vnluation 'rom 1044
25 $ 28,155
- 80
+100
+ 18
263,776
- 26
157
+226
222
356,250
+065
+610
+ 17
- 51
294
157,342
- 15
+ 10
I
21
328
317,573
+ 32
+
1,1l4
701,710
6
- 41
- 53
- 23
104
120,075
- 80
+ 88
513
748,770
+102
+ 64
+ 7
102
110,106
- 46
- 36
24
527 1,742,147
80
+ 88
+156
268
324,125
+ 22
+451
+544
- 35
129
44,122
8
+173
1,654
838,283
+ 10
+ 28
+ 2
1
303
442,518
+316
+334
146,522
-11
- 26
+104
106
2
- 56
55
35,537
- 38

"

-

t

-

-

+ 65

+10

----5,901 $0,477,010
+

27

VALUE OF CONSTRUCTION CONTRACTS AWARDED
(ThouStlnds of dollars)
February
February
January
January 1 to February 28
1046
1944
1045
1944
1045
S 33,071
S 25,613
Eleventh Distriot-total.. . S 17,855
$ 8,701
$ 15,216
2,100
6,139
Residential............
1,158
1,073
051
30,062
10,474
All other . . . . . . . . . . . . . .
16,607
6,818
14,265
287,006
290,484
United States"-total.. . . .
146,957
137,246
140,940
38,836
65,858
10,300
24,861
19,586
Residential.. .. .. .. .. ..
240,070
230,626
All other. . . . . .. .. . . . . .
127,657
112,385
121,413
"37 states east of the Rocky Mountains.
SOURCE: F. W. Dodge Corporation.

Percenta~e cbange in

savia~

eposits from

Amount of

Number of
savings
depositors
11,803
106,230
24,670
37,110
20,800
87,751
802
5,515
31,403
31,035
B.503
6,681
55,739

:..:.' t

Stock.o-(1023·1026 ~ 100)

Total-24 oities .. .... .... $2,001,507 52,015,272
- 1
$2,306,784
- 16
"Includes tbe figures of two banks in Texarkana, ArkanStl8, looated in the Ei~bth District.
tCbange less than one· half of ono per cent.

Gross
domand
1948 . .... •.... $2,605,603
1944 ........ .. 3,277,127
1044 .......... 3,705,142
1944 . ......... 3,844,475
1944 .......... 4,024,828
1045 .......... 4,104,746
1045 .......... 4,010,752

WHOLESALE AND RETAIL TRADE STATISTICS
~-----:Percentage change i n : - - - - - ~----Net stiles
Stocks t-~
Number February 1045 from
Jan. 1 to
February 1045 from
Fcbruary January Fcb. 28, 1045 February January
of
Retail trade:
firms
1944
1045
from 1044
1044
1045
Dop.rtment stores:
Total 11th Dist ... .
40
+14
+ 4
+10
- 4
+ 7
Dallos .......... ..
7
+14
+ 0
+10
- 6
- 1
Fort Worth ... . ... .
4
+16
+14
+17
- 3
+ 2
Houston .......... .
7
+11
+11
+13
- 7
+W
San Antonio ...... .
5
+22
- 3
+20
+10
+10
Shreveport, La . .. .
3
-13
+20
....
.. ..
+ 8
Othor cities .•......
23
+11
- 6
+16
- 12
+ 4
Retail furniture:
-7
Total 11th Dist ... .
53
+16
+2
+ i
-5
Dallos ........... .
4
+7
Houston .......... .
7
+27
+2
+'0
-2
-0
Port Artbur ...... .
4
San Antonio ...... .
-6
3
+31
+2
+10
Wichita Falls ..... .
3
+38
+11
Independent stores:"
Oklahoma.........
364
+ 8
- 8
+16
Texos.............
050
+11
~ 1
+14
Wholesale trade:"
Automotive supplies
4
- 4
-28
Grooeries..........
27
- 2
-10
2
Hardware. . .......
14
+10
- 2
+10
- t
+ 1
Tobacco'" produeto.
3
- U
- 5
- 10
....
"Compiled by United States Bureau of Oensus (wholcsnle trade figllres preliminary).
tBtooks at end of montb.
tCbangc less than onc·half of one per cent.

f2.0
20.6
16.0
25.7
S5
.
36.7
+23.8
13 2
.
20.7

Jan.31,
1045
+ 2.1
+ 2.8
+ 3.3
+ 3.0
+ 1.2
2.4
.4
+ 3.1
+ 3.2
+ 2.0
- 4.8
+1.1
+ 2.4

+33.8

+ 2.4

Feb .. 20,
1044
+27.0
+43.3
+43.8
+30.5

t
t

a

t

CRUDE OIL PRODUCTION-(Darrels)
Inorease or decroase in daily
February 1045
average produotion from
Dailyavg.
Total
production
Jan. 1045
produotion
Feb. 1044
236,270
5,202
6,615,550
+ 4,420
North Texas ................ .
-12,768
13,043,300
465,832
+105,161
West Texas ................ ..
537,088
+12,509
+ 30,388
Eost Tel." ..... .. ........ .. . 15,063,650
346,502
+ 4,152
0,702,050
+ 58,014
Soutb Telos ............... . .
561,082
+ 8,482
44,648
Coastal Toxos ............... . 15,710,300

+

Total Toxas ..... ..
Now Mexico ...............•.
North Louisiana ............. .

60,134,850
2,008,200
1,024,700

2,147,074
103,864
68,730

+238,010
0.Q78
8,300

Total Dbtriot.. . . . .
64,967,750
2,320,277
+221,451
SOURCE: Eetimated from American Petroleum Institute wecldy reporto.

+16,705
682
237

+

-

+17,240