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

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

MONTHLY BUSINESS REV EW
of
=

the

Vo!ume30

FEDERAL RESERVE BANK of Dallas
Dallas, Texas, August 1, 1945

DISTRICT SUMMARY
. General rains throughout most of the Eleventh J?istrict durmg the past month partially relieved the drought m the western part of the district and were very beneficial to crops and livcs~ock ranges; nevertheless, crop conditions over the district contmue somewhat spotty. Acreage of crops for harvest in Texas
on July 1 was 6 pel' cent lower than a year ago. Due principally
to the small acreage in northwest Texas resulting from the pro~onged drought, the acreage planted to cotton in Texas this year
IS 13 per cent smaller than last year and the smallest in about 50
years. Livestock generally have been maintained in fair to good
condition and marketing continued in large volume .. Buying ~t
department stores during June showed a smaller decline than is
usual at this season and was 12 per cent above that a year ago,
the largest year-to-year gain since March. Furniture store sales
during June were also larger than a year earlier: The value. of
construCtion contracts awarded rose sharply m June, bemg
more than double those in May and the highest for any June
since 1942. The gains occurred in contracts for nonresidential
building and for utilities. Production of crude petrol~um continued to increase in June and is expected to rise further in July
and August as allowables have been increased to augment the
supply ot crude oil available for shipment to the West Coast.
Between June 13 and July 11, the deposits, loans, and investments of weekly reporting member banks showed a further
sharp expansion on account of factors associated with the Sevent War Loan Drive.
BUSINESS
Sales at departmen t stores in this district declined by less than
the usual seasonal amount in June and exceeded those in June,
1944, by 12 pel' cent. The year-to-year gain in June was larg~r
than in either of the preceding two months and was apprOXimately the same as the average gain for the first six months of
the year. Weekly reports from a smaller number of firms indicate that the margin of increase over a year ago widened considerably during the first half of July. The strong demand for
merchandise in recent weeks reflects in part the increased supply of certain types of merchandise, the release of a quantity
of nonrationed shoes, the advertisement of "clearance sales" on
some merchandise and renewed confidence in the maintenance
of employment le~els for a reasonable period, despite the cutbacks in war contracts.
Inventories of departments showed a further increase of 11
per cent as compared with the preceding month and the gain
over the corresponding date last year widened to 20 per cent.
Departments in which stocks showed substantial increases over
the preceding month and gains ranging from 60 per cent to
more than 100 per cent as compared with a year earlier included:
~ash goods and linings; jewelry; neckwear and scarfs; gloves;
mfants' wear; women's and misses' coats and suits; and juniors'
~nd girls' wear. Sales in these departments also showed sizable
mcreases as compared with June last year.
Furniture store sales in this district during June were in
about the same volume as in the preceding month but were 6
per cent larger than in June last year. Inventories on June 30
were also approximately the same as a month earlier and 7 per
cent above those on the same date last year.

Number 6

AGRICULTURE
Adverse weather throughout .most of the Eleventh District
during the spring planting season seriously delayed seeding operations in many areas and was responsible for a 6 per cent reduction in the over-all acreage of Texas crops. With the exception of oats, rice and peanuts, most major crops in Texas
showed decreases from a year ago in acreages for harvest.
General rains over a large part of the State during July were
very beneficial to most row crops and production estimates on
a number of late crops may subsequently be revised upward.
The principal adverse factors are the spreading of insect infestation and the persistence of hot, drying winds in the High
Plains and the lower Rio Grande Valley, where irrigation water
supplies have been inadequate. Despite the deterioration of
ranges during the droughty period in May and June, livestock
have been maintained in generally good condition and movements to market which continued in relatively large volunle
have been orderly.
The July 1 estimate of the Department of Agriculture
placed the areas seeded to cotton in Texas this year at 6,400,000
acres, a decline of 13 per cent from the 7,354,000 acres planted
last year, and the lowest acreage in about 50 years. The United
States estimate of 18,355,000 acres is 10 per cent lower than
last year, and 30 pe~ cent under the 10-year (1931-1943) average. The decrease 1J1 the Texas acreage, which accounted for
about one-half of the decline in the United States, occurred
largely in the High Plains section of northwest Texas. The
Texas cotton crop, except in the drought areas in the north and
northwest cotton producing districts of the High Plains, made
from fair to good growth, overcoming some of the effect of
the late start. There have been numerous complaints of widespread insect activity, poor fruiting, and premature opening of
bolls in south Texas.
Too much rain in the north, east, and central sections and
droughty conditions in the western areas of Texas during the
planting season were major factors contributing to the 17 per
cent reduction in this year's corn acreage. Although recent
rains have increased prospective yields per acre, the estimated
production of 63,984,000 bushels is 5,638,000 bushels less than
the production last year and the lowest since 1934.
Although the Texas winter wheat crop was seeded under the
most favorable conditions, adverse weather in the heavy wheat
producing areas during the late growing stages sharply reduced
yields. The July 1 estimate of 37,881,000 bushels is only about
one-half of the record crop of 74,746,000 bushels harvested in
1944, but is 25 per cent larger than the 10-year average production. The indicated yield of 9.0 bushels per acre compares with
19.0 bushels last year and the 10-year average of 10.1 bushels.
Harvesting operations, which were delayed to some extent by
rains, should be practically complete by the end of July. The
production of oats in Texas was forecast at 43,546,000 bushels,
which is about 5,000,000 bushels above the 1944 harvest and
approximately 10,000,000 bushels more than the 10-year average. The barley crop, which is estimated at 5,075,000 bushels, is less than half of last year's production, but is still considerably above the 10-year average. The rice crop has made
excellent progress under favorable conditions and if the production indicated on July 1 of 21,200,000 bushels is realized,
the crop will exceed all previous records.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

2

MONTHLY BUSINESS REVIEW

Although much of the acreage intended for grain sorghums
had not been planted on the High Plains by mid-July due to
lack of moisture, tentative estimates placed the total acreage
to be harvested at 6,656,000 acres, as compared with 7,157,000
acres last year. Total acreage of all tame hay to be harvested, estimated at 1,542,000 acres, is slightly under that a year earlier.
The production forecast of 1,465,000 tons is 4 per cent smaller
than production in 1944.
Areas planted to peanuts in Texas, indicated at 890,000
acres, represents an increase of 5 per cent over the 1944 acreage,
but is smaller than the record acreage in 1942 and 1943. Due
to reduction in acreages planted to Irish potatoes and sweet
potatoes, the indicated production is 4 per cent and 17 per cent,
respectively, less than the production in 1944.
Commercial vegetable harv est around the middle of July was
linuted ma:nly to cantaloupes, tomatoes, and watermelons,
which arc being marketed in considerable volume from all produring areas. Transplanting of vegetables for the fall crop made
slow progress during the first half of July in the Rio Grande
Valley due to the extremely hot weather and the shortage of irrigation wai:er, but recent rains have improved water supplies
and crop prospects. Citrus fruit, which was well advanced in
size on June 1, has made very little growth since mid-June, but
with the recent improvement in moisture supply should progress
satisfactorily. The indicated Texas peach crop of 2,850,000
bushels is 88 per cent above the 1944 production and 82 per
cent above the 10-year average. The pecan crop has made from
fair to good progress and a large yield is in prospect.
R ange feeds and pasturage in most of the district deteriorated
slightly during June due to insufPcient surface moisture, especially in a large portion of the western half of Texas, southern New Mexico, and Arizona. Rains over most of Texas during
the first half of July relieved the critical situation in the TransPecos area but afforded only temporary relief in parts of the Edwards Plateau, south Texas, the Low Rolling Plains, and most
of the northwestern High Plains. Cattle are in from fair to
good condition, although some supplemental feeding is necessary to maintain flesh. The condition of sheep declined 3 points
during the 'month and on July 1 was 4 points below the 20-year
average for that date. The recent rains, however, have materially improved range conditions in most of sheep growing
arel\s. The June 1 estimate placed the Texas spring pig crop at
1,122,000 head, which represents declines of 19 per cent from
the preceding spring and of 48 per cent from the record crop
of 1943 .
The June movements of cattle, calves and sheep into the Fort
\vf orth and San Antonio markets, which were curtailed by adverse weather conditions, declined 14 per cent from the reccrd receipts in the preceding month, but were only 10 per cent
smaller than the relatively large receipts in June last year. Receipts of cattle, calves, and sheep for the first six months of 1945
total 2,926,000 head, or 16 per cent more than for the same
period in 1944. Movements of sheep into the above markets
constituted about 70 per cent of the total, and were 86 per
cent above the heavy sheep receipts for the same period last year.
On the other hand, total receipts of hogs were about 60 per cent
below those for the same period in 1944.
Prices received by Texas farmers during June, as reported
by the Department of Agriculture, were slightly lower than a
month earlier for practically all products with the most pronounced declines occurring in prices of wheat, oats, barley,
potatoes, hay, and meat animals other than hogs. Moderate increases were reported for grain sorgh\lm, sweet potatoes, cotton
lin t, cottonseed, cowpeas, hogs, chickens, eggs, and wool. Prices
of corn, rice, butter, butterfat, and milk remained unchanged .

CASH FARM INCOMl~
(Thousands of dollars)
- - April 1045 -~------Tot"1 receipt3----<
-Rcceipte from- April
April
January 1 to !prljl'
Crops Livestook'
1945
1014
1045
104
15.015
3,781
10,000
17,027
55,005
54,;60
71
":::::::::::::: 10,035
5,010
15,051
13,012
57,253
54,"••
Now Mexico ..... . . .. ... .
743
4,040
4,792
5,012
2",522
10,0~
Oklahoma .. . . . . . ....... .
8,800
18,278
27,147
23,168
11 8,100
09,21'
Toxas .................. . 42,542
57, 170
00,718
78,785
33J,713
300,Oll

~~i~rn~;,;.

--

Total. . . . . . . . . . . 78,104
88,303
166,407
138,204
588,073
'Iooludoo receipts from the sale of livestock nnd Iivestook produots.
SOURCE: United States Dcpartltlent of Agriculture.

---

533,11 7

Ll VEtiTOCK RECEIPTS-{N umber)
- - - F o r t Worth----Snn Antonio---'
June
Mn)'
Juno
Juno
May
June
1044
1046
1045
1014
1945
1045
Cattle ... ... .. , . . . .. .•. .. 70,403
105,840
127,625
28,455
30,727
33,7:i
Calves. ......... ... ..... 28,308
32,982
20,370
22,517
10,512
25,~S2
Hogs
38,028
02,358
45,312
4.'l31
10,011
5, '"
Sheep:::: : : ::::: : : : : : ::: 580,046
673,395
053,703
111,302
131,6"
88,085
COMPARATIVE TOP LIVESTOCK PRICES
(Dolin... per hundred weicht)
- - - F o r t W o r t h - - - - - - - San Antonio - - '
Juno
June
May
June
June
MnY6
1045
1044
1045
1045
1944
101
Beef steers .............. . $10.50
$10.10
$10.25
$15.25
S13.75
$16. 0:1
Stecker steers ... . ....... . 14.00
12 .85
14.00
. ioi:Oti 'is)'
Heifers nnd yearlings .... .
10. 25
10.00
16 .25
14 .75
Butcher oows ........... .
12. 611
13 .00
12.00
13.00
11.50
12.00
14 .6<1
Calves ................ . .
14.00
14 .00
14.50
14.25
14.10
14.s.i
14.55
13 .05
14.55
14. 55
13.55
14 .611
14.75
14.75
15.00
12.75
13.25

r~:b~::::::::::::::::: :

COTTONSEED AND C01v fONSEED PRODUCTS
----Toxn.
Unit,od St.ltes----"
August 1 to June 30
August 1 to Juno 30
This season
Last sea.on
This 3ea.,on
1.'I8t sellS'"
Cotto",ced received nt mills
(tons) . .. ..... . ........... .
942,040
017,350
4,310,051
3,949,8~l
Cottonseed crushed (tons) . ... .
000,520
930,857
4, 138,122
3,808,7
Cottonseod on hand June 30
(tons) .. . . ................ .
67,322
22,108
130,012
282,785
Production of produots:
Crude oil (thousand Ibs.) ... .
278,111
288,682
1,280, 100
1,21 8,00:
Cake and meal (tons) . . . . . . .
429,069
446,181
1,000,364
1,808'~6
Hulls (tons) .... ....... ... .
210,100
22 1,007
011,
057,554
Linters (running bales) ..... .
273,553
280,050
1,163,067
1,211,834
Stooks on hand June 30:
Crude oil (thousand Ibs.). . . .
3,686
3,805
14,847
10, ao
Cake and meal (tons). . . . . . .
10,641
37,66
0,600
72,200
Hulls (tons)...............
18,189
10,09S
2,874
06,883
Linters (running bales) . . . . . .
6,510
37,720
124,260
32,120
BOUnCE: United Btates Bureau of Census.

l

DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(Eales)
June
June
Mny
August 1 to Juno aO
1945
1944
1045
This season Last se&
Consumption nt:
TexllS mill•..............
16,140
17.087
10,042
174,506
180,2f:
United States mills . ..... .
780,063
805,823
830,508
8,002,742
0,210,0~
U. S. stoeks-ond of month:
In consuming estabm'ts ... 2,045,052
........
1,980,576
Publio stg. & eompresses .. 0,105,258
8,852,745

........

CROP PRODUCTION-(Thousands of uni ts)
~--Texas--~-El oveuth Distriot"
Estimated
Estimat<ld
Unit
July 1, 1045
1044
July 1, 1045
1044
Wintcr whent............ Bushels
37,881
74,746
38,570
75,77:
Corn.. . . . .. .. .. . . . . . . . . . Bushels
63,084
00,022
75,427
82,01
Oate.. . ............ .•. . . BlIshols
43,540
38,000
48,705
44,ljl,
Bnrloy. . . .......... ..... Bushels
5,075
10,780
10,561'
18,4
Tame hay . . .. . . .. .. ..•.. 'fODS
1,405
1,526
2,015
2,1 150
Potatoes, Irish. ... .. .... . Bushels
4,830
5,016
5,020
O,O~I
Potatoes, sweet.......... Buohols
4,150
5,025
]4,3201
14,1051
Rice ... ... . . ........... . Bushels
21,200
19,208
44,052
41,S
'Arizona, New Moxioo, Oklahoma and Texas.
tLouisiana, Oklnhoma nnd TexllS·
tLouisiann nnd TexllS.
SOURCE: United States Department of Agrioulturo.

ACREAGE--(In thousands)
----Texas
Eleventh Distriot' :
F<f- - Harvested -~
For
~- Harvested - Average
harvest Average
ha~'5
1034-43
1044
1045
1034-43
1044
1....
Cottont ........ " .. . " . .
0,787
7,354
0,400
13,410
10,070
8'~1
Corn ....... ".... . ......
4,085
4,073
4,128
8,500
8,295
8,~·
Wheat.. . ..... •. ... .....
2,054
3,034
4,209
7,284t
S,046t
0S'2!i
Oats. .. . ........ ... .. ...
1,412
1,544
1,853
2,894
3,201
'6~
Barloy. ........ .... ... ..
190
3S5
350
050t
701 t
Ii

~r.,~'. '. ::::::::::::::::::

2~~

3~~

4~~

7~~1

~~~1

9ft
Flax. . . . . . . . . .. . . . . . . .. .
23
34
03
53'
107'
~
Tame hny .......... .....
1,135
1,623
1,542
2,605
3,384
a,S!!
Wild hay . . . . . . . . . . . . . . . .
215
231
240
004
808
I':
Potatoes, Irish. . . . . . . . . . .
584
60
02
138$
1748
II'.
Potatoes, sweet . . . . . . . . . .
,.
5
07 50
75
18 8
All sorghum, e,oept syrup.
0,444
8,303
7,075
9,065
11,245
10'11'
Pennuts (alone).. ... . .
496
848
800
080s
1,142 m
I'SIII
COWpellS (alone) .. .....
528
282
220
774 m
423 m
'Texa~~ Arizona, Louisiana, New Mexico nnd Oklahoma. tAcre.,ge in oultivation, ~~ .
tArizona, New MeXICO, Oklnhoma nnd 1'exas.
INew Moxioo, Oklahoma and 1'IY
· Louisiana and Texas. 'Arizona, Oklahoma and Texas. -Louisiana, Oklahoma and
SOURCE: United States Department of Agriculture.

MONTHLY BUSINESS REVIEW

Alt?ough the general price trend was down from a month
earlier, prices generally were considerably above those in June
a y:ar ago, the principal exceptions being those for oats, barley,
gralll sorghwn, and alfalfa hay.
FINANCE
The average reserve balances of member banks in tius district
reached an all-time peak of $676,000, 000 during the first half
of)une, and then declined moderately during the subsequent
th~rty days. Following the usual pattern between war loan
drIves, the required reserves of member banks rose substantially between December, 1944, and May, 1945, when reserveexe~l1pt war loan deposits were being converted into private depOSitS which require reserves. During most of this period, the
Increase in required reserves was more pronounced than the expansion in reserve balances with the result that excess reserves
in the last half of April had declined to $94,000,000 or about
$36,000,000 below the level at the end of 1944. During June,
whe~ reserve balances were at a high level and required reserves
declllled'because of the rapid growth in war loan deposits, excess reserves rose to $140,000,0 00, the highest level in about two
years: Moreover, balances with correspondents increased substantially, reaching a new peak of $787,000,000 .

The increase in the amount of currency in circulation in this
district h::s shown a definite tendency to slow down during the
first half of 1945 , with the most noticeable slowing down
occurring during the second quarter of the year. Federal Reserve note circulation of this bank on June 30 was at a new
peak of $579,000,000, but the increase of $4,780,000 during
the month was much smaller than in either the preceding
mo.nth or the same month last year. The expansion in circulation during the first half of this year amounted to only $32,500,000 as compared with $5 5,900,000 in the same period last
year.
.
Ear.ly. in March rumors became widespread that the Treasury
was giVing consideration to retiring from circulation currency
o~ the larger denonlinations, and these rumors persisted for some
time. As a result, some of the holders of large denonlination
currency began to dispose of it and the new demand for such
currency diminished. Late in May, the Treasury requested Federal Re.serve banks, as Fiscal Agents of the United States, to
transl~t to all financial institutions the Treasury's instructions
regarding the reporting of currency transactions, where the
amounts or denominations of the currency involved exceed
~hose commensurate with the legitimate and customary condUCt of the business, industry, or profession of the person or inus~ry concerned, and considerable publicity was given to this
t1ce through the press. The Treasury has emphasized that
t e reporting requirement was made because the abnormal use
of large denomination currency in business transactions has beCOme one of the principal devices for income tax evasions and
concealments. The action had three effects : (1) it accelerated
t?e ret1.lrn flow of lar<>e denomination currency from circulatIO~, (2) it diminished the current demand for large denomitlOn currency, and (3) in some areas, at least, it increased
t e demand for currency of the $10 and $20 denominations.
d During the second quarter of 1945, the circulation of each
enomina tion be tween $5 0 0 and $1 0,000 showed a decline and
?t t~e end of June the amount of each of those denominations
Clr~ulation was smaller than at the beginning of the year.
he circulation of denominations of $50 and $100 has shown
chmparatively little change from the March level. Although
~ ere Was a moderate increase in the circulation of currency
III the $10 and $ 20 denominations during the second quarter of
;945,. this increase was only slightly larger t han in the correpOndlllg period last year :lnd may be due to the seasonal de~and ~·ather than a conversion of currency from the larger
enomlllations into the smaller denominations.

T

Juno 15,
1945
$521,427
Nono
748,151
748,151
673,687
573,255

¥.

CONDITION STATJSTICS OF WEEKLY REPORTrNG MEMBER BANKS
IN LEADING CITmS
(Thousands of dollars)
July 11,
July 12,
June 13,
1945
1041
1045
Tot.alloans and investments ....................... $1,880,437 $1,546,048 $1,752,584
Tot.alloans..... .. .. . . .... .... ..... ... . . .. .. ..
460 611
874,323
442.561
Commercial, industrial, and ajlrieulturalloans ... :
288: 158
240,620
275,040
Loans to brokors and dealers 10 soeurities... . .. ..
1,848
2,877
5,077
Other loans for purchasing er carrying securities. .
04,925
56,178
74,064
Real estnte loans.. .. .. ... . .... .. .. .. .. .. . ....
23,711
20,234
22,082
Loans t.a bnnks...... .. .. . ..... .. . . .... . . . . . . .
206
211
214
All ~ther loans ...... ... ......... .. ...........
57,763
15,203
63,375
Totnlmvestments............................. 1,416,826
1,.172,625
1,310,023
U. S. TrCl\8ury bills ..... ..................... :
74,004
102,849
73.710
U. S. Treasury certificates of indebtodness.. . . ..
400,979
832,685
376,003
U. S. Treasury notes...... . . . ............ . . .. .
260,561
213,710
249,698
U. S. Government bonds. .............. .......
613,208
457,617
561,821
ObligationslI.unrantced by Unitod States Gov't..
145
21,703
100
Other securities . . ... . ........................
40,320
43,971
48,592
Reserves with Fcdernl Reserve Bank....... .... ... ..
367,447
326,042
370,136
BnlanoCII with domestic banks..... .. . . . .. ..... . . .. .
273,339
231,094
279,855
Demand doposilB-ndjustod·. . . . .. . .. .. ..•. . . ... .. 1,221,599
1,040,088
1,295,044
Time deposita. ... . .. .. . . . ..... .. .. ... ... .. .. . . ...
254,025
186,590
249,274
United States Governmont dopo.its. ... ... . ... . .. .. . 383,783
349,989
222,786
Interbank doposits..... . .. . . . .. .. . . .. . ... .. .. .. ...
500,465
466,515
560,240
Borrowings from Federal Reservo Bank. .. . . ... ... ..
Nono
Nono
None
·Includes all demand deposits other than interbank and Unitod States Government loss
oash items reported ns on hand or ill process of oolleetion.
'
DEBITS TO INDIVIDUAL ACCOUNTS
(Thousands of dollars)
June
June
Potg.ehallge
1045
1044
over yeor
Abilene .. .. ... . .. . ...... S 18,208 $ 19.692
- 8
Amnrillo. . ........... . ..
51,107
44.682
+15
Austin............... . ..
81,083
08.450
- 18
Bonumont........ .. .. .•.
62,005
57,304
+ 8
Corpus Christi...........
65,020
51,402
+27
8,184
6,468
+27
Corsionna....... ... .....
DnUns. . ............•...
685,830
582,100
118
Ell Paso. ..... . ... . ......
72,538
50,833
21
Fort Worth..... . . . . .... . 250,228
232,082
7
Gnlvcston....... ..... . ..
53,099
53,116
+ 2
Housten.................
661,800
507,248
+11
14,007
13,000
+ 7
Lnredo.. ..... .. . ..... .. .
Lubbock. . ..... .........
33,731
26,700
+20
Monroe, Ln..............
17,051
17,933
2= t
Port Arthur. . . . .. . .•... .
24,954
25,030
t
Roswell, N. M... . . . • . . . . .
0,550
9,445
+ 1
Snn Angclo..............
21,123
21,596
- 2
San Antonio. ...... . .....
181,707
103,518
+11
Shrovoport~ Ln.. . . . . .. .. .
88,754
83,064
+ 7
Texnrlmn~ ......... . ....
22,458
20,051
17
Tucson, Ariz.. . . .... . ....
30,213
30,230
20
6
'l'yler. . .. . ..............
25,850
24,310
Wneo.. . . .......... . ... .
31,248
30,468
+ 3
Wichita Falls. ..... . .....
37,543
32.652
• +15

Moy
1045
17,075
40,680
03,405
58,004
55,121
7,264
590,447
04,342
224,200
43,577
588,885
14.024
30,593
18,697
23,506
0,280
17,595
173,716
88,588
22,750
30,313
25,181
27,028
33,386

Petg.ehnnge
over month
+ 1
+ 3
+28
+ 7
+18
+13
+16
113
12
24
+12
- t
+10
- 4
+ g6
+
+250
+
+ t
- 1
-+ t

S

+12
+12

Total- 24 oities .......... $2,555,310 $2,302.373
+ 11
$2,284.036
+12
0Includes the figures of two banks in Texnrknnn, AtkansnA, loontod in the Eighth Distriot.
tCbange less thon one·half of one per cent.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Average dnily figures-Thousands of dollors)
Country banks
Combined total
llilscrve eity bonks

h

h

8

CONDITION OF THE FEDERAL RESERVE BANK
(Thousands of dollars)
July 15,
July 15,
1045
1944
Total ClUlh reserves . ..............• . .......•...... S4R1,435
$562,497
Disoounts for mombor banks ............•.......•.
75
NOllo
S.I Gov~rnmollt seourities .... . .... . ....... .. . . . : 840,742
523.085
ota earlllll~ IUlSCts . . ...................... ... . .
840,817
523,085
Member ban reservo doposits .................... :
693,133
540.403
Fedorul Reservo notes in actual oirculation ......... .
582,299
406,045

June
June
Fobruary
March
April
Mny
June

Gross
Gross
demond
Time
demond
1043 ........... $2,870,672 $238,040 $1,584,550
1044. ........ . . 3,301,412 206,055 1,740,241
1945 . . ......... 4,016,752 354,586 2,020,660
1945 . . ....... . . 4,050,000 367,380 2,045,585
1045 ........... 4,039,267 380,585 2,030,420
1045 . ..... . .... 4,002,587 303,000 2,044,524
1945 . . ....•... . 4,200,715 400,205 2,180,248

Gross
demnnd
Time
$141,240 $1 ,202,122
184,028 1,012, 171
221,548 1,000,002
232,600 2,004,415
242,778 2.008,838
240,140 2,048,063
263,505 2,110,467

SAVINGS DEPOSITS
June 30, 1945

Bonumont . ........ . ....•
Dnllas ........• .. .......
EI Paso .............. ···
Fort Worth ..............
GnlvOliton . . ..........•..
Houston .................
Lubbock .. ..........•..•
Port Arthur ....... . .....
Snn Antonio .............
Shreveport, Ln ...........
Waco .............. ·.···
Wiehita Fallit ...• . ...•. . •
AUother .... . ......... . .
Total. ... .. .•.•

Number of
reporting
banks
3
8
2
3
4
0
2
2
5

a

3
8
58
105

•

1

sa03,051,553

112,327
130,038
134,780
137,807
143,050
145,700

Pereentnge chango in
savings deposits from

Nnmber of Amollnt of
suvings
June 30,
savin~s
depositors
depOSits
1944
12,155 $ 6,856,212 +25.3
124,400
58,672,057 +40.5
26,006
17,971,522
40.3
38,224
27,234,807
38.4
21,495
17,374,940
20.0
80,138
56,024,341
28.5
814
623,470 +27.0
5,661
4,073,773 +23.5
30,053,083 +36.0
33,1l5
32,247
21,865,629 +36.4
8,642
7,320,060 +32.5
0,885
4,343,320 +17.5
57,552
43,128,423 +30.8
450,433

Time

S 96,800

+33.8

Moy31 ,
1045
+ 2.0
+ 2.6
+ 2.6
+ 3.1
+ 1.8

+1.7

+ 2.0
+
+ 3.0.4
+ 2.2

+ 3.1.01

-

+1.5

+ 2.3

MONTHLY BUSINESS REVIEW

4

During the period between June 13 and July 11, the changes
in the weekly statement of reporting member banks continued
to reflect the factors associated with the Seventh War Loan
Drive. Despite the decline of $73,000,000 in adjusted demand
deposits, total deposits showed a net increase of $113,500,000,
due to the sharp expansion in war loan deposits. The total loans
and investments of these banks rose by approximately
$134,000,000. The increase of $2 0,000,000 in loans to others
than brokers and dealers for security trading represented advances to customers for the purpose of purchasing Government securities during the drive. In view of the fact that commercial, industrial, and agricultural loans showed a nonseasonal increase of $12 ,000,000, it appears that some business
firms may have used their regular lines of credit to obtain fWlds
to enter subscriptions. These banks also increased their security
holdings by $107,000,000. While substantial additions were
made to holdings of certificates of indebtedness and Treasury
notes, nearly one-half of the net increase in total holdings occurred in Treasury bonds. On July 11, holdings of Treasury
bonds constituted 43 per cent of the total investments of
these bank~ as compared with 39 .l?er .c ent a year earlier, even
though total investments increased by $244,000,000 during
the year. This change is indicative of the extent to which banks
are lengthening the maturities of their security portfolios.
INDUSTRY
The reconversion program is proceeding slowly due largely
to the fact that cutbacks, while in considerable volwne, are not
immediately affecting war plants generally and supplies of raw
materials, machinery, tools, and labor are not readily available.
Nevertheless, some of the hard goods are beginning to appear
on the market in larger quantities and a substantial step-up is
expected before the end of the year. The Department of Commerce reported recently that, on the basis of a survey covering
some 7,000 companies in the United States, American industry plans to spend $4,500,000,000 for plants, equipment, and
alterations during the next twelve months. That volume of
private expenditures would be equivalent to three times the
yearly average between 1937 and 1940, and 64 per cent greater
than the previous peak of $2 ,750,000,000 spent in the calendar
year 1929. The War Production Board announced that during
the period from April through July 6, 1945, it had approved
1,279 applications, involving an expenditure of $243,681,000,
for preferential ratings for construction and equipment materials necessary for industrial reconversion. In Texas, six applications for a total of $546,000 were approved.
Reflecting the widespread readjustments in the war .production program, the number of civilian employees in the major
Texas industries and in military establishments declined about
6 per cent in the period from January 1, 1945 through May 31.
Subsequent cutbacks in the aircraft industry brought the overall decline in number of employees for war industries to about
8 per cent, but late reports indicate that additional employees
will be needed within the next four months in all industries
except ai~raft. The most drastic reduction in number of employees during the first five months of 1945 occurred in shipbuilding, aircraft and in civilian employees in military establishments, while only minor reductions were shown for plants
producing ordnance, iron and steel, and non-ferrous metals.
On the other hand, significant employment gains were reported for the lumber industry and petroleum refineries, and
moderate gains were indicated for plants producing chemicals,
synthetic rubber, machinery, and cotton duck. Due to a large
scale expansion of Army facilities at San Antonio, expansion
of ordnance and carbon black plants in the Amarillo and Borger sectors; and additional contracts for converting Victory
ships for transport service awarded to shipyards at the Gulf
Coast cities, a shortage of labor now exists at those points. In

WHOLESALE AND RETAIL TRADE STATISTICS
,.
Percentage chnngr. in:
,------Net snles---v--Stocks t-Number
June 1045 from
Jan. 1 to
June ]045 from
of
June
May
June 30, 1045
June
May
Retail trade:
firms
]944
]045
from 1041
1944
1945
Derartment store.:
Totnl 11th Disl. . .. .
48
+ 12
-12
+13
+20
+11
Dallas ........... .
- 14
+15
+18
+ 1
7
+ 16
Fort Worth ...... .
4
+ 5
- 12
+13
+ 1
+10
lIouston .......... .
-11
+ 6
+12
+ 3
7
+ 5
Sau Antonio . ..... .
5
+ 22
-10
+22
+58
+51
Shreveport, La. . . .
3
1
- 11
6
....
Other cities ... . ... .
22
+ 10
-10
+1 I
+11
+ 5
Retail rurniture:
Total lith Dist.... .
54
+1
-t
6
Dallas............
5
+16
-2
20
Houston... ........
7
13
1
Port Arthur. . . . . . .
4
+15
4
-I
San Antonio. . . . . . .
3
-1
-]6
Wichitn Falin. . . . . .
3
-11
Independent stores:
Oklahoma. . . . . . . . . 365
-6
+10
Texa.q.............
951
-10
7
Whole.nle trodo :·
AutolJwtive supplies
4
- 10
+10
-23
-4
Electriolll supplies. .
3
+117
+43
Groceries.. . . .. . . . .
27
+ 28
+ 1
Hardware. . . . . . . . .
13
+
- 2
Surgical equipment.
3
+ 14
+15
Tobacco &: products.
a
- 8
+ 5
·Compiled by United States Bureau of Census (wholesale trado flgllr .., preliminary).
IStocks at end of month.
tChango less than one·h.l£ of one por cent.

+

+

+
+
+
+

+

.:.::8

+

[NDI!:XES OF DEPARTMENT STORE SALES AND STOCKS
Daily average saIes-(1035·1939-100)
Unndjuatedtt
Adjusted
June
May
April
June
June
May
April
]944
1045
1945
1945
1045
1045
1045
248
228
District . .... 228
203
256
253
240
Dnllas ..... . 221
247
225
101
276
272
250
Houston .... . 220
237
210
200
224
241
233

Juue
]044
246
242
227

-

Stoeks-(1023.1025~100)

Unadjuatcdtt
May
April
June
1045
1045
1045
District .....
120
115
111
ttUnadjusted for seasonal variation.

June
1044
100

June
1045
137

Adjusted
May
A8ril
1045
1 46
114
107

JunO
10d

110

CRUDE OIL PRODUCTION-(Bnrrcls)
Juno ]045
Incresse or decrense in daily
averago prOduction from
Total
Dailyavg.
production
production
June 1044
May 1046
7,338,000
North Tcxas .............. . . .
244,600
+ 3,240
+ 700
West Tcxas ... . ............. . 14,022,000
407,400
+ 50,670
+2,100
15,526,000
East Texas ............... . ..
517,583
+ 12,228
- 461
10,726,000
South Texas ...... . . . ... ..•..
357,563
+ 44,058
+1,013
Texas Coastal. . .. ......... .. . 16,802,000
563,067
+ 35,107
- 23a

~-----

Total Texas.. . .. .
New Mcxioo . .... . . ......... .
North Louisiana ............. .

65,404,900
3,113,150
2,076,700

2,180,163
108,772
60,223

-+ 146,098
-

4,283
4,305

Total District . .... 70,504,750
2,353,158
+137,420
SOURCE: Estimated from Ameriean Petroleum Institute wcckIy reports.

-

+4,018
- 128
-1,524

-

+2,36 1

VALUE OF CONSTRUCTION CONTRACTS AWARDED
(Thousands of dollars)
June
Juno
May
January I to June 30
1045
1944
1945
1045
1044
Eleventh District-total... S 25,715
$ 10,080
$ 11,558 $ IS9,5fi6
$ SO,712
Residential. . . . . . . . . . . .
4,363
1,872
16,107
3,964
17,2] 6
123,458
68,497
Allother..............
21,487
8,217
7,594
United States·-total.. .. .
227,208
163,866
242,528
1,482,390
ooo,22l
107,509
208,89.
Residential. ...........
41,779
30,622
47,206
All other ............ , .
185,510
133,244
195,317
1,284,800
756,829
·37 states east of the Roeky Mountains.
SOURCE: F. W. Dodge Corporation.
BUILDING PERMITS
Percental'
Percentage change
valuation from
Jan. 1 to June 30, 1945 chan~~
vRluatl 4
Valuation Juno 1044 May 1045 No.
Valuation from III
_ 61
$ 26,805
04
$
95,650
- 62
+ 50
267,483
561
1,102,175
+ 34
+ 0
268,742
735
1,088,844 +I()l
+153
+ 01
408,561
+575
084
870,326 + 67
+483
320,648
- 13
- 86
1,084
1,636,246
I'
1,412,628
4,004
4,348,807 _ 86
+120
+ 61
125,811
- 28
6
376
456,037
402,Oa6
1,890
3,116,804 + 76
+170
- 35
114,265
+ 32
365
431,034 _11
+ 16
1,020,730
- 55
1,000 13,758,487 +1~
- 78
318,235
1,046,597 +~
+200
+102
771
44,744
- 28
477
250,S07 + 91
+107
417,857
- 13
4,868
2,638,085
+ 72
+17 1
155,283
1,305
1,098,154 _28
- 31
+113
82,815
776,110
- 72
496
- 80
53,428
256
206,306 +119
+216
- 61

June 1045
Abilene ........ ..
Amarillo .... . ....
Austin ......... . ,
Beaumont ........
Corcus Chrioti. ...
Dnl as ...........
EI Paso ..........
Fort Worth ..... ..
Galveston ........
Houston .. .. .... . .
Lub"ock .... . ....
Port Arthur ......
San Antonio. . . ..
Shreveport, Ln....
Waco ............
Wichita Falls .....

No.
11
116
131
156
177
810
06
200
62
373
145
70
532
221
77
53

------

Total. ....... a,320 $5,540,061

+2~

:!:

-

~

+ 13

-

30

20,316 S38,Q16,S59

+ 69

MONTHLY BUSINESS REVIEW

all other major cities of Texas the balance between demand
and supply appears to be generally favorable, with a slight
s~plus of labor indicated. Although cutbacks in war productIOn and the completion of existing contracts will affect a
substantial number of employees during the next few months,
~ost of those so affected are likely to be transferred to similar
hnes of work in other areas or to be absorbed in civilian industry.
DAILY AVERAGE PRODUCTION OF CRUDE PETROLEUM

1~1--~----+---4---~---+----~--+---~---t---+--~I~
'OOi--~--__
~
~
~~
+-__4-__~__
~IOO

+-__ __ __-+__

__

-+__

r-'-I'- V~~--+---+:---~-J' -t-~--i 100

.-+---1----1

.~

6

On July 14, the Petroleum Administrator issued amendments to several wartime restrictions which will permit the petroleum industry to start preparations to reconvert to a peacetime basis. There is now no limit on the quantity of materials
that can be used in the construction of certain refining, transportation, natural gasoline and special production facilities,
provided not more than $25,000 worth of materials is obtained
with priorities assistance. Restrictions prohibiting the duplication of gathering lines for crude oil or natural gas are no
longer effective. Amendments have increased the maximum limits upon the use of construction materials and equipment in
bulk plants and in retail outlets. Service station operators may
now obtain up to $500 worth of materials with priority assistance for maintenance and repair, but such assistance cannot be used to acquire pumps or tanks .

f ~--~-+--~ ·oo

.OOt~~~--+_--~-_+- 'II ~----~-+_'~~~--_+-_+-~200

' UOOr---t---~--_+-~-- ~--+--~~--+--4---t---1 ' ~
___I -__
100
_~

+-_~

lOOt----r---+_--~-_+-~---~-+_-~-_+-_+-~·OO
·~r----r---+_--~-_+-~---+_-+_-~-_+--~-~·OO
<~r----r---+_--~--_+--_+--+_-+_-~--_+-~--~IOO

Daily average crude oil production in this district during
June reached a new record of 2,353,000 barrels, surpassing the
previous peak attained in the preceding month by about 2,400
barrels, and exceeding the output in June, 1944, by about 6
per cent. Production outside this district also increased slightly from May to June, reflecting the continued efforts to stepup output in the West Coast fields. To meet the needs of the
new type of warfare involved in operations in the Pacific, the
Petroleum Administration for War has readjusted its program,
laying less stress upon the production of 100-octane aviation
gas, while sharply stepping up the output of diesel fuel oil and
other petroleum products. P. A. \V. estimates that it will take
8,400,000 gallons more petroleum liquids daily to power the
Pacific War at its peak than is being currently used, and that
due to present and prospective demands, the limited storage
space abroad, and the vast distances to be covered, it is necessary
to build up stocks to record levels in order to provide sufficient
flexibility to meet any contingency. The principal burden of
meeting the heavy demand will continue to fall upon the
southwest and the Pacific Coast fields. In consequence, P. A. W .
production certifications to this district will continue at record
levels, with emphasis being placed on production of west
Texas sour crude oil for shipment to California refineries. It
is estimated that daily average shipments from west Texas to
California wiJl reach an average of 46,000 'barrels daily,
which is about the maximum that can be moved with the available transportation equipment. Above ground crude oil stocks
at the end of June remained at about the same levels as in the
preceding month and were only slightly under those held
at the end of June a year ago. During the first half of this year,
more than 3,900 oil wells were completed in the Eleventh District, as compared with approximately 3,300 wells completed
in the same period in 1944. Despite the fact that drilling actiVity has been maintained at a steady pace during the year,
and daily average well completions have been relatively high,
tOtal completions are still far below the level of 1941 and prior
years.

Cotton conswned at United States textile mills during June
totaled 786,000 bales, representing a decline of 5 per cent from
that in the precedulg month and was 3 per cent less than the.
806,0'00 bales consumed in JWle last year. Cot tOil consunlption
for the first 11 months of 1944-1945 season totaled 8,903,000
bales, a decline of 3 per cent from that during the same period
last season. Moreover, mill consumption thus far this season
is 13 per cent less than the record consumption during the
corresponding period of the 1942-1943 season. Although recently established government policies to weed out excessive
military procurement and to relax troublesome regulations are
bringing some relief to the critical shortage of cotton textiles,
the paramount problem in the industry continues to be a
shortage of experienced labor and the replacement of w{)rn or
obsolete equipment. Output of cotton textile products, which
has remained consistently below the level deemed necessary
to meet military and civilian demands, continues to lag, despite priorities assistance and measures employing a combination of manpower aids and premium price incentives set up
to encourage three-shift operations by mills. Large scale paid
vacations in the textile industry during July tended to further
delay the government sponsored programs, which were designed to increase textile production; therefore, any betterment which occurs may be too late to materially increase retail.. inventories ill the early fall, but considerable improvement is expected during the fourth quarrel".
The value of construction contracts awarded in this district
during June, amounting to $25,715,000, was more than double
that in the preceding month and was the highest for June since
1942. Moreover, total construction awards in this district for
the first six months of the year, amounting to $139,565,000,
were 73 per cent above the total of $80,712,000 in the same
period last year. Significant gains were indicated for utility
and non-residential construction during the first half of this
year but slight declines were reported for residential and public
works construction. Although an improvement in the supply
situation for construction materials and components may be expected within several months, the War Production Board reports that the effects of the end of the European War are not
yet apparent in current supply, and that a number of controls,
especially on lumber, will continue until supplies are more
plentiful.

6

MONTHLY BUSINESS REVIEW

SEVENTH WAR LOAN DRIVE
SALES IN 'rHE UNITED STATES
Subscriptions to Government secuntles offered during the
(Ill millions of dollnrs)
Seventh War Loan Drive reached the unprecedented total of
Sixth
Per cent
drive
of total
Type
of
seourity
$26,313,000,000. This figure exceeded the previously anSeries E Bonds .. , . . , ,. , .. , , , , , , ' .. , .. $ 2,868
13
nounced National quota of $14,000,00 0,000 by $12,313, 000 ,- Series F and G Bonds, .. ,., .... , .. ,,"
719
3
Jl
2,429
Savings
Notos
....
,",.,""'"
"
..
,.'
000, or 88 per cent, and was nearly $5,000,000,000 in excess of Certificntes of Indebtedness "" , , ' •• , , ,
4,405
21
1,550
7
the amount raised during the Sixth \Var Loan Drive, the 17..% Treasury Notes ... """ .. , .. ".
17!i% Treasury Bonds, .. ,' " " "" . ' ,
largest total for any previous war loan drive.
6,9ao
32
2~ 'l'reasury Bonds, . ,., .... . ....... '
In preparing for the drive, some changes in proced'ures were
made in an effort to obtain as much of the funds as possible
from the savings of individuals and business, with a minimum
of bank credit expansion. The principal changes were an increase in the quota for individuals, particularly Series E bonds,
and an extension of the period for individual subscriptions.
The general procedure in effect included (1) as in four preceding drives, commercial banks were excluded from entering
direct subscriptions for new issues included in the drive, although those with time deposits were again permitted to purchase outside the drive limited amounts of certain issues ;
(2) the quota for individuals was placed at $7, 000,000,000 or
one-half the total quota; the over-all quota for individuals included $4,000,000,000 of Series E bonds; the quota for other
nonbank investors was reduced; (3) institutional and other
nonbank investors were requested by the Treasury to refrain
from selling outstanding securities as a means of obtaining
funds with which to enter subscriptions during the Seventh
Drive; (4) the number of issues in the "basket" that can be
purchased by commercial banks after the drive was reduced;
(5) limitations were again placed upon sales to brokers and
dealers; (6) the sale of 1 Y1 per cen t Treasury bonds, an issue
eligible for purchase by commercial banks after the drive, was
limited to individuals; (7) the Treasury again requested the
cooperation of commercial banks in declining to make speculative loans for the purchase of Government securities and in
declining to accept subscriptions that appeared to be for the
purpose of speculation.
Despite the strong emphasis placed on the broad objectives, outstanding securities were sold in heavy volume, thc
proceeds of which were utilized to enter subscriptions to
drive securities and the amount of bank loans extended fo r
the purpose of purchasing securities was very large. Whil e
complete data are not yet available, it appears that the amount
of bank credit utilized directly or indirectly during the Seventh
War Loan Drive was as large or larger than in any preceding
drive.
The emphasis placed upon sales to individuals during the
drive resulted in a creditable performance, even after allowance for the speculative element. Total sales to individuals
aggregated $ 8,681,000,000, as against $5,882,000,000 in the
Sixth Drive, and exceeded the quota by 24 per cent. In comparison with the preceding drive, sales to individuals showed
the largest gain in dollar volume, amounting to about $2,800,000,000 as against a gain of less than $2,000,000,000 in sales
to corporations and other nonbank investors. Salcs of Series E
bonds were only slightly below the $4,000,000,000 quota,
which is a good showing despite the longer time period. Sales
of these bonds constituted 15 per cent of total sales as compared with 13 per cent in the Sixth Drive. The heaviest demand was for the restricted 2 Y4 per cent and 2 Y1 per cent
Treasury bonds, the combined sales of which constituted 46
per cent of total sales during the drive.
Sales of the various types of securities, as well as the percentage distribution, during the Sixth and Seventh War Loan
Drives on a national basis are presented in the following table:

2~% Treasury Bonds. , "''''''''''''
2J.i% Treasury Bonds, , ..... , ... , , . , ,

2',7ii

TotaL",.,."". ,","','
GonL .... , , . , , , , , , .... , , , ...... , , , , ,
Per cent over DubscriptioD, ... , . , .... , .

S21,621
14,000
54

Seventh
drive

Per oenl
of total

$ 3,976
991
2,707
4,784

15
4
10
18

1',600

'7

5',077
7,088

19
27

13
100,0

$26,313
14,000
88

-

100,0

Total sales in Texas were also exceptionally large, amountin!
to $766,000,000 as compared to $592,000,000 during the SiJ,t~
Drive. Aggregate sales exceeded the $43 0,000,000 quota b)
78 per cent, or nearly as large percentagewise as the NatioJ1~
oversubscription. Sales in Texas accounted for 2.9 per cent ot
the National total or slightly more than the proportion alY
sorbed during the Sixth Drive. As in previous drives, the per·
formance with respect to Series E bonds was exception aU)
good. Total sales of $170,530, 000 were 2 per cent above thi
quota of $168,000,00 0. Texas was one of the five states wid,
quotas in excess of $100,0 00,000 to reach the goal and h~o
the highest percentage of oversubscription.
The amounts by types and the percentage distribution 01
securities sold in Texas during the Sixth and Seventh War Lo3~
Drives are shown in the following table:
SALES IN TEXAS
(Thousands of dollars)
Sixth
Por cent
Type of soeurity
drive
of total
Series E Bonds .. , , , , , , .. , , , , , .. , ' ... , $126,500
21
Scries F nnd G Bonds .... , , , ...... , . , ,
26,460
6
Savings Notes .... , , , .... , , ..... , , , ...
97,399
17
Certificates of Indebtedncss" .. , . " , , . ,
96,143
16
IM% Treasury Notes .... " ... , "" .. '
41,995
7
17!i% 'rrelUlurx Bonds , , , , , , , , , , , , , .. .
2jlJ Treasury Bonds, , ,, ' , .. ,' , .. , ... . 1'7'i,i48
2M% Treasury Bonds. , , ....... ,. , .. '
'a'I,iiJo
27!i% Treasury Bonds, , , , ..... , . , .. , ,
TotaL" ........ , ........ , $591,844
Gonl. ...................... .... '....
414,000
Per cent over subscription ... , . , , , , , , . , 4 8

100 .0

Seventh
drive
$170,530
80,430
88,880
108,320
1'7'1:5ili
gil,i7i;
106,005
$765,903
430,000
78

Per coni
of total
22
4
12

14

22
i2

-14

100,0

The distribution of security sales in Texas during the Sevend
Drive was again substantially different from that of the countrl
as a whole. In each of the Sixth and Seventh War Loan Drj'l~
sales of Series E, F, and G bonds constituted 26 per cent o~
total sales in the States, which was a considerably larger pro'
portion than that for the nation. Sales of the 2 Y4 per cent aP'
2 Y1 per cent restricted Treasury bonds were relatively mu J
smaller in Texas than in the nation, but sales of the 1 Y1 per cepi
Treasury bonds constituted 22 per cent of total sales in Te,,3~
the same as Series E bonds, whereas sales in the nation reprt
sen ted only 7 per cent of the total. For the country as a whoJ~
the 2 Y4 per cent and the 2 Y1 per cent restricted Treasury bon~
were purchased chiefly by insurance companies, savings bank~
and corporations, and sales were concentrated to a large exteJ!'
in the eastern part of the country.
The following table shows sales during the Seventh '\iI,r
Loan Drive in Texas and in the nation by class of investor:
TOTAL SALES OF SECURITIES IN THE SEVENTH WAR LOAN, BY CLABSgS
OF INVESTORS-(Millions of dollars)
CIll88 of investor
United States Texas total r#
Individunls, partnc.. hiPll, nnd personnl trust accounts " ".
$ 8,681
432
Corporntion. nnd other investors:

~~~~~c~a~~:,~~i:~::: :: :: : : : : : : : : : : : : :: :: : :: : : : : : :

4,179

89

2,241

Corporations nnd nssoeiations, , . , , , , , , , , , , , , , ..... , , .
Fe<!er!ll ngeneies nnd federnl trust funds, ,. , , , " , .. , . ,.
BUlldmg nnd lonn nnd so\'ings nnd lonn nssoeiations , , , ,
~enlers nnd brokers, , , , , , " , , , .... , , , , , , , ..... , , , , ,
tnte and loenl governments, , . , , , , , , , .. , , , . , , .. , , ...
Total for corporations nnd other investors. , , , , , , . .• . , .

17,682

Total soles ..... , ... , ... " .. "." ..... ,""" .........

$26,313

8,257
47

811
286

1,811

ii

1

41

-

384
766

MONTHLY BUSINESS REVIEW
AUGUST 1, 1945

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Comlllled by the Board of Governors of the Federal Resorve System)
INDUSTRIAL

PRODUCTION

Production and employment at factories declined somewhat further in June reflecting mainly
reduced output of munitions. Value of department store sa les in JUlle and the early part of July were
considerably above YC:lr-ago levels.

1'(11"""

2GO

240
220

INDUSTRIAL PRODUCTION

200 1-+-1--1

Industrial production decl ined about 2 per cent in June and the Board's seasonally adjusted index
was 222 per cent of the 1935 -39 average as compared with 226 in May and 235 in March of this year.

'801-+-\--1
'GO

-

20

+-+-1-+-+-1

'40

ffftfffi:

80
194'J

1942

1044

1940

1942

1944

Federal Reserve indexes. Groups are expressed in
tlerms of points ill the total index. Monthly figures,
atest shown arc for June, 1945.
DEPARTMENT STORE SALES AND STOCKS

22°r--+---4---~---+--+--1--~r--tr--12'0
200

200I---t---+---+-+--\--

-.11....,---, 180
IGO

140

4--+--+--/,--j 120
'~-~-1--+--t--1 '00
80 "":::::-'----'"-.....J"-.....JL
1939
1940
1941

.L._L-....Jl..----' 80
1942

194'

h Federal Reserve indexes. Monthly figures, latest
s Own arc for June, 1945.
COST OF LIVING

GO
"'",''''

1"'·".100

,eo

"0

,ool.:\~
~,
1/ ........: ..

'40

~/""

M:-.'LO"'''~

' ~O

120

---1'/ -

110

'00

--~

I. ~

.0 ! -

-j-

.Ii. R'N,-L -

'.:."'1
i'=.!---"...-'--.-=W-

=-l~/"r-v~

80
1937

1938

1939

1940

1941

1942

1943

1944

_

COMMODITY PRICES

110

AGRICULTURE

'00

Production prospects for most major crops were generally favorable on July 1. Cotton acreage
reported in culrivation, however, was 10 per cent smaller than last year, and prospective corn production
this year was indicated on July 1 to be 17 per cent smaller than last season's large harvest.

;-

90

oo.

DO

1945

.8j"1~$.or_t.OI:l~

~

40 r----1I----I-

Milk production continued at a record level in June. The number of young chickens on farms has
increased rapidly this spring and on July I was 11 per cent greater than on the same date in 1944.
Marketings of cattle and sheep were larger in June than in the same period last year, while the number of
hogs marketed continued to be much less than in 1944.
BANK CREDIT
Reporting member banks in 101 leading cities increased their holdings of U. S. Government securities by 4.5 billions of dollars in the eight weeks ending July II, which period included the major portion
of the Seventh War Loan drive. This amount corresponds closely to increases for comparable periods
of the tWO previous drives. During the Seventh. Loan ba~s added s~bsrantially to their holdings of bills,
certificates, and notes, and they have also conrmued to mcrC:lse thelf holdings of bonds.
Loans for purchasing and carrying Government securities extended to Customers other than brokers
and dealers by weekly reporting banks increased 1:6 billiollS during the four weeks ended June 27 in
contrast to 1.1 billions during the comp~rable peClo~ of the Sixth drive, and 1.3 bil1ions in the Fifth .
Loans to brokers and dealers for purch.asmg or ~arry'~g Government sec urities started increasing somewhat C:lrlier ~nd ex.panded more. than '.n prec:dmg dClv.es. ~oth categories of these loans at their peaks
were above h'gh pomts reached m prevIous dnves. Declllles IJ1 these loans began in July.

r - - j----f.

1040

Department store sales, which usually decline from May co June, increased this year and the
Board's seasonably adjusred index rose from 187 to 201 per cent of the 1935 -39 average. Sales in June
were 15 per cent larger than a year ago and in the first half of July were 23 per cent larger than in the
corresponding period last year.
Freight carloadings were generally maintained in June and the early part of July. Shipments of
manufactured products, however, declined somewhat and, allowing for seasonal changes, were about 5
per cent below the first quarter average. Loadings of coal in June and the first two weeks of July were
above the reduced level prevailing in April and May.

Steel scrap prices, which had declined somewhat in May, increased ro ceiling levels in the latter part
of June and prices of most other industrial materials were mnintained at ceiling levels.

20

e0r----t----+-__-+___+-__ ____+_----

30

DISTRIBUTION

,

40

MEMBER BANKS IN LEADING CITIES
~

Production of most nondurable goods showed little change in June. Civilian supplies of some of
these goods such as butter and tobacco products have increased in July as a result of reduced military
purchases. DistilJeries have been permitted to produce beverage alcohol in July. Production of shoes and
textile products for civilians is expected to increase by autumn.
Output of minerals ,'ose 5 per cent in June, reflecting mainly a large rise in coal production to the
highest rate since last November. Crude petroleum production continued to increase, reflecting even
greater military deman.d for some petroleum products for the Pacific \~ ar than for the two-front war
prior to VE day.
Contracts awarded for most types of privately-owned construction increased considerably in June.
The total value of private awards was three times as large as the very low level prevailing in 1944, while
awards for Federal construction were generally smaller than last year.

,

Bureau of Labor Statistics' indexes. Last month in
each calendar quarter rhrough September, 1940,
monthly thereafter. Mid.month figures, latest shown
arc for May, 1945.

__ I

Steel production in June and the first three weeks of July was down 7 per cent from the May level,
and was 5 per cent below the corresponding period a year ago. Output in the nonferrous metal industries
also declined, particularly at fabricating plants, due primarily to the large drop in military demand for
most aluminum and copper products.

Prices of wheat and of fr uits and vegetables declined somewhat from the middle of June to the
third week of July reflecting chiefly seasonal increases in supplies. Prices of most other farm products
showed little change after reaching a new peak for the wartime period on June 15.

.0

-l-

ALL ITeMS

Redur.ed activity in munitions industries accounted for most of the decrease. Aircraft production
in June was at a daily average rate 5 per cent below May. The volume of work done on new ship construction continued to decline, while ship repair activity was maintained at a high level. Total munitions
production was about 10 per cent below the March level, which was the last month under the full twOfront war program. The decline is schedu led to accelerate in July, with over-a ll munitions output
planned at a r~te about 15 per cent below March.

1941

1942

1943

1944

1945

Demand deposits (adjusted) exclude U. S" GovC;nment and interbank deposits and collection Items .
. Overnment securities include direct and guaranteed
'Issues. Wednesday figures, latest shown are for July
1, 1945.

Excess reserves expanded more .and reached a higher level than in any drive since the Third \~ ar
Loan drive in Septe~bcr, 1943. Ow~ng to the grent success. of th7 Seventh Loan in obtaining subscr iptions from nonbank mvestors, the sh,ft of. funds from depos'ts subject to reserve requirements to reserveexempt United States Government depoSIts and the consequent d.ecline in required reserves were larger
than usual.. Member .banks used. a part of the funds thus. n~ade ava,lab!e to payoff borrowings at R~se rve
Banks, wlllch had nsen to a h,~h leVel. of over 900 ~11110n dollars 'n June. Reserve Bank holdings of
TrC:lsury bills showed less declme durmg and fol1owmg the Sevenrh Loan than at the time of tl
previous drive. Holdings of certificates and notes continued to increase.
1e