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MONTHLY BUSINESS REVI EW
of the

FEDERAL

RESERVE

BANK of Dallas

Dallas, Texas, January 1, 1945

Volume 29

DISTRICT SUMMARY
Consumer buying at department stores in this district increased substantially from October to November and was 16
per cent higher than in November, 1943, with indications that
the December volume will be at an exceptionally high level.
Although merchandise stocks at department stores at the end
of November were moderately higher than a year ago, late reports indicate that supplies of many items are being depleted
by the large December sales. Construction contracts awarded,
which had declined in October, increased in November and were
nearly double the exceptionally small volume in November last
year. Crude oil production and drilling activity were sustained
at approximately the October rates and were substantially above
the respective rates in November last year. Cotton consumption
at both United States and Texas mills, which had been declining
in recent months, increased during November but was smaller
than in the corresponding month last year. Rains throughout
most of the Eleventh District during November and the first
half of December provided needed moisture over wide areas,
which greatly benefited small grains and range feeds. The completion of harvesting operations has been retarded by weather
conditions and the continued labor shortages in many areas. The
deposits, loans, and investments of weekly reporting member
banks increased substantially between November 8 and December 6, largely as a result of transactions associated with the Sixth
War Loan Drive. Subscriptions by nonbank investors to Government securities offered during the drive were greatly in excess
of the goals both in Texas and the United States.

BUSINESS
The dollar volume of sales at reporting department stores in
this district during November was 16 per cent above that of a
year ago and was approxitrultely three times the ave~age monthly volume during the period 1935-1939. Sales durl11g the first
eleven months of 1944 were 15 per cent higher than those in
the corresponding period last year, and indications from weekly
reporting firms are that December sales will be the highest of
record. Sales of weekly reporting firms during the week ended
December 9, 1944 were 22 per cent higher than those during
the comparable week of last year. Despite the fact that decreases
in stocks were reported in some items, department stores have
'been able to acquire sufficient supplies of other items to increase
the dollar value of total stocks at the end of November to a
level 5 per cent higher than that a year ago.
At reporting department stores, November sales of jewelry
and silverware were 28 per cent higher than a year ago, and indications are that sales of these items will reach a record high in
December. The November sales of women's and misses' coats
and suits were 11 per cent above those a year ago, but stocks
at the end of the month were 14 per cent lower than last year.
Although November sales of men's clothing increased 6 per
cent from a year ago, stocks at the end of November were 36
per cent below those of a year ago. Average monthly stocks of
men's clothing for the first eleven months of 1944 were 24 per
cent lower than the comparable average of 1943, whereas average
monthly sales during the same period decreased only 4 per cent.
Sales of infants' wear in November were 23 per cent higher than

Number 11

last year, and stocks at the end of the month were 73 per cent
above a year ago. Substantial increases over a year ago were reported in both sales and stocks of these items throughout the
first eleven months of 1944, average sales being about one-third
higher than in 1943 and average stocks about two-thirds larger.
Total sales during November at reporting furniture firms
were 6 per cent higher than in October and 18 per cent above a
year ago. Stocks at the end of November declined further, showing a decrease of 7 per cent from both a month ago and a year ago.

AGRICULTURE
The light to heavy rains which fell over most of the Eleventh
District during November and the first half of December relieved the droughty conditions in all except a few scattered
areas, improved range feed and pasturage in most portions of
Texas and New Mexico, benefited small grains, and left the soil
in excellent condition for winter plowing. On the other hand,
the rains retarded harvesting operations and caused some damage to the unharvested portions of late crops. Labor shortages
continue with harvesting and other farm operations.
The fina~ estimate of the 1944 Texas cotton crop was placed
at 2,640,000 bales, which compares with 2,823,000 bales produced in 1943 and the 1933-1942 average of 3,273,000 bales.
The indicated yield of 176 pounds per acre is slightly above that
in 1943 and considerably higher than the 10-year average of
162 pounds. The revised estimate of cotton acreage harvested
in Texas this year is placed at 7,200,000 acres, on about 600,000
acres less than was harvested in 1943. Although ginnings in
Texas are somewhat behind last year, good progress was made
in November and by the end of the month 2,081,000 bales, or
approximately 82 per cent of the expected crop, had been ginned.
Harvesting is nearing completion in all sections except in the
northwestern are~ . The crop turned out better than was expected in the South Plains, the Low Rolling Plains, and the
northern portion of the Blackland Belt. Estimates of cotton
production in Arizona and New Mexico show slight increases
over the 1943 crop; production in Oklahoma is about double
the 1943 crop; but estimated production in Louisiana is substantially below last year's harvest due both to the smaller average and the lower per acre yield. A United States cotton crop for
1944 of 12,359,000 bales represents an increase of nearly 1,000,000 over last year's production and is only slightly below the 10year average production of 12,455,000 bales. The estimated
yield of 295 pounds per acre is about 23 pounds above the previous all-time record yield of 272 pounds per acre produced in
1942 and compares with the 10-year average of 227 pounds.
Cotton acreage harvested in the United States during 1944 is
estimated at 20,098,000 acres, or the smallest acreage harvested
in about 50 years.
In the commercial vegetable areas, temperatures were particularly favorable for snap beans, eggplant, peppers, and tomatoes, the harvesting of which has become active in all sections. Hardy crops, such as beets, cabbage, carrots, cauliflower,
and spinach made rapid grow:h; but some damage caused by a
widespread outbreak of blue :_:old is reported by spinach growers. Shipments of fresh vegetables from Texas prior to the
middle of November exceeded those of a comparable period
last year.

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

2

MONTHLY BUSINESS REVn;;W

Carlot movements of citrus fruits from the Rio Grande Valley thus far this season are approximately 29 per cent above
those of the same period last year, and temperatures have been
favorable for the crop. The estimates of grapefruit production
remained unchanged at 20,150,000 boxes, which is about 15
per cent above last year's production. The production of oranges,
which is now estimated at 3,850,000 boxes, is about 8 per cent
larger than in the previous season and 51 per cent larger than
the 1942-1943 crop.

CASH FARM INCOME-(Thousands
~S.ptcmbor 1944
-Receipts from- Sept.
Crops LivestockO
1044
Arizona . .. ............. .
1,642
2,257
3,800
Louisiana ............. .. . 20,889
5.798
26,687
New MexicfJ .... ...... , ..
3,608
4,365
7,973
Oklahoma .. . ........... . 20,132
25,650
45,782
Texas .................. . 64,187
42,230
106,417

The Department of Agriculture reported that the condition
of Texas ranges on December 1 was well above last year and
that grass had cured fairly well in most districts. In a few scattered localities where summer rains were light, range feeds are
short; but in most areas, generally good winter grazing is in
prospect. Wheat fields are furnishing excellent pastures, and
considerably more livestock are needed in some sections to graze
off the early rank growth. In most areas moisture conditions are
reported good, but additional rains will be needed to sustain
grain pasturage. Range feeds and pastures generally are considered adequate and, with average conditions, cattle should go
through the winter in good condition. Sheep and lambs are also
reported in good condition with bright prospects for wintering.
The receipts of calves and hogs at San Antonio and Fort
Worth markets increased during November, while those of
cattle and sheep showed a seasonal decrease from the previous
month, although total movements continued relatively large.
Receipts of cattle, calves, hogs, and sheep at the two markets
for the first eleven months of 1944 were larger in each classification than the heavy movement during the same period in 1943.

LIVESTOCK UECEIPTS-(Numhcr)
Worth-- - - -- Snn Antonio - - Novembcr November Octoher November November Ontobcr
1644
1643
1944
1944
1643
1644
Cattle ............ . ..... . 118,012
84,972
117,182
32,52 1
27,364
34,44 1
Calvcs . ........... . .... . 83,400
05,764
70,207
47,0 13
35,263
50,261
56,627
OB,404
54,405
14,383
15,274
12,037
: : :::: :: :: :: : : : 128,561
176,382
166,802
33,662
4ft,082
46,172

Prices received by Texas farmers during November, as reported by the Department of Agriculture, reflected significant
increases in prices for beef cattle, calves, and hogs. Prices received for turkeys, eggs, and milk showed a slight upward trend,
but most dairy products and· chickens showed no appreciable
change. Cottonseed increased fractionally, but the price of cotton remained unchanged. On the other hand, moderate declines
in prices were indicated for small grains other than wheat. While
prices of sweet potatoes declined from a month ago, they were
still slightly higher than on the same date last year.
FINANCE
The latest available reports indicate that subscriptions for
Government securities during the Sixth War Loan Drive may
exceed the $14,000,000,000 goal by more than $5,000,000,000.
It also seems likely that subscriptions in Texas will exceed the
State's goal of $414,000,000 by about the same percentage that
the National goal is oversubscribed.
During November and the first half of December, there was
apparently an inflow of funds into this district reflecting, in
part, the shifting of funds for the purpose of entering subscriptions to securities during the Sixth War Loan Drive. The reserve
balances of member banks rose sharply during the first half of
November and reached an all-time peak of $628,000,000 around
the middle of the month. Although there was a subsequent decline, average reserve balances for the month were at a new
peak of $609,000,000, which was $31,000,000 higher than the
average for the preceding month and $110,000,000 above that
in November, 1943. The required reserves of member banks also
increased sharply during November; but the expansion corresponded roughly with the rise in reserve balances, with the
result that average excess reserves for the month were maintained at a level slightly in exce '~ of $100,000,000. During the
first half of December, averag!) :::serve halances increased further; and since there was a large-scale conversion of private deposits to reserve-exempt war loan accounts at depository banks,
required reserves declined and excess reserves rose sharply.

of dollnrA)
Totol rcccipta - - - Sept.
Jan. I to Sopt. 30
1943
1944
1943
5,480
01,148
00,128
31,045
119,561
122,347
7,208
49,2B4
54,163
37,701
325,968
262,243
110,403
761,472
73 6,O~0

Total ........... 110,458
80,300
190,758
101,837 1,347,4 13 1,264,6 11
°Includce receipts from thc sale of livestock nnd livestook products.
SOURCE: United Stotes Department of Agriculture.
~--Fort

Nhoc~sp.'.'::

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars pcr hundred weight)
~--Fort Worth-- _ _ _ San Antonio - - November November Ortober November Novembcr Ootober
1644
1643
1044
1644
1943
1044
$14.50
Beef steers ........... . .. . $15.00
$15.00
$13 .00
$12.35
$12.75
ll.65
Stocker steers .. . ........ . 12.50
12.50
14.25
'jidi;
Heifers and yearlings .... . 15.00
15.00
13.00
11.00
Butcher cows .......... . . "12.25
11.50
10.50
10 .50
11.00
12.00
13.00
Calves . ..... .. ......... . 13.25
13.00
12.00
12 .00
14.80
Hogs .. ... . ............. . 14 .65
14.55
14.55
14.25
14 .25
13.75
Lambs ........ .. ....... . 13.75
13.50
12.00
12 .50
13.00

.i:i:oo

COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States--Auguat 1 to November 30
Auguat I to November 30
This acasoa
Last season
This sellSon
Last sClISon
Cottonseed received at mills
664, 166
(tons) . ....... . ............
798,277
3,325,852
3,317,492
345,725
508,624
Cottonaeed crushed ~na) .....
1,561,691
1,885,885
Cottonseed on hand ov. 30
(tons) .....................
380,087
330,322
1,952,117
1,520,383
Production of products:
Crude oil (thousand Iba.) ....
102,536
146,722
484,804
576,386
162,688
Cake and meal (tons) ..... ..
235,374
726,135
866,241
RO,OI1
Hulls (tons) .. . ............
118,613
366,019
430,108
Linters (running bales) ......
106,816
151,040
401,833
560,888
Stocks on hand Nov. 30:
15,521
Crudo oil (thousand Ibs.) ....
lR,632
6R,OOS
60, 143
Cake and meal (tons) ..... ..
27,448
2a, I03
73,674
65,500
23,598
Hulls (tona) ...............
20,481
50,151
38,656
33,520
Linters (running bales) ......
82,888
116,323
260,3RO
SOURCE: United States Bureau of Census.
DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(Bales)
Novemher November October Au¥uat I to November 30
Consumption at:
1044
1043
1044
Th,s aellSon Last sellSon
Texas mills .. .... . .... . ..
15,084
15,882
14,04 1
63,418
71,121
United States mills.......
836,541
858,877
705,370
3,266,406
3,421,212
U. S. stocks-end of month:
2,389,227
In consumiag est"bm'ts. .. 2,209,604
Public stg. '" compresses . . 1a,I85,606 12,950,983
TEXAS-COTTON PRODUCTION BY CROP REPORTING DISTRICTS
(In thousands of 500-pound gro"" woight haleR)
Iroreeast
10 year avorage
Distriot
1644
1643
1033-42
I-N. North High Plains..... ..... .... ... .........
47
59
59
1-8. South lii~h Plains.. .. . .. .. .. .. • .. . .. . .. .. ..
500
480
421
2. Permian Plm"s...............................
560
412
585
a. North Central. ..... . ... .. . . . ... . . . ........ . ..
45
43
75
4. Northern 'roxas Prairies. .. .. . .. .. .. . .. .. .. .. ..
680
710
886
5. East Texas.... .. .. .. .. .. .. .... .. .. . .. . .. . .. . .
204
335
465
6. Trans-Pocos............. .. ..... .. ... .. .. .. .. .
85
72
66
7. Edwarda Plateau. . . . . . . . . . .. . . . . . . •. . . ..•. . . .
37
84
63
8. Soutbern TexllS Prairies. . . . .. . . .. . . .. .. .. • . . . .
240
354
380
A. Coastol Prairies .............................
62
182
130
10. South Texas ................ , .. .. .. .. .. .. .. .. .
150
la3
122
Totol. ....................... .. ...... .

2,640

2,823

3,273

The acceleration in the demand for Federal Reserve notes of
this 'bank, which had become apparent toward the end of September, continued throughout November. Augmented by the usual
pre-Christmas demand for currency, the circulation of Federal
Reserve notes increased $20,000,000 during November to a new
high level of $543,000,000 at the end of the month and remained close to the higher level during the first half of December.
The principal changes in the condition statement of weekly
reporting member banks in this district between November 8
and December 6 were associated with the Sixth War Loan Drive.
During the four-week period, total deposits increased $125,000,000 to a new peak of $2,157,000,000. United States Govern-

MONTHLY BUSINESS REVIEW
ment deposits, consisting mostly of war loan accounts, increased
$133,000,000, as the banks made settlement through war loan
accounts for Government securities purchased by their customers. Since there was apparently a substantial flow of deposits
to these banks, their adjusted demand dePosits declined only
$27,400,000.
During the four weeks, total loans and investments of these
banks were increased $104,800,000, consisting of increases of
$46,700,000 in loans and of $58,100,000 in investments. The
principal increase in loans occurred in those for security trading,
which increased $27,600,000 over the four weeks and was associated with advances to customers to facilitate the purchase
of Government securities during the Drive. There were also
substantial increases in commercial, industrial, and agricultural
loans and in "all other" loans, and probably reflected to some
extent the use of bank credit for the purchase of Government
securities. The increase in investments occurred chiefly in holdings of Treasury notes and bonds. The large increase in holdings of Treasury notes apparently reflected the exchange of
718 per cent certificates of indebtedness maturing on December
1 for the new issue of .90 per cent 13-month Treasury notes,
since there was a reduction of $41,400,000 in holdings of certificates of indebtedness.
INDUSTRY
Daily average production of crude oil in the Eleventh District, which had shown a steady upward trend from March to
September when the daily average rate reached an all-time peak
of 2,333,000 barrels, declined slightly in October and November. The November rate of 2,309,500 barrels daily, however,
was 9 per cent above that in November last year. Most of the
expansion in output from Texas fields over the past year has
been in the west Texas and Texas Coastal fields; but recently
increases have been requested in sweet crude from east Texas
fields to meet refinery runs, and corresponding reductions were
requested in the production of sour crude in the west Texas
fields. Production of crude oil outside this dis~rict during November remained at about the same level as in the previous
month and wag about 5 per cent above the production in November, 1943.
The Petroleum Administration for War certified a production rate of 5,026,400 barrels daily of all petroleum to the
various oil producing states for December, representing a decrease of some 25,000 barrels daily from the peak amount certified for September. The Texas quota of 2,278,000 barrels of oil
daily included 2,133,000 barrels of crude oil. However, a redistribution of allowables was requested to meet the increased
demands for sweet crude oil to meet refinery requirements and
to operate the War Emergency Pipeline at full capacity, which
would necessitate an increase in production from east Texas
fields and a reduction in west Texas fields.
Drilling activity in the Eleventh District, as measured hy
the daily average number of well completions, increased slightly
in November, which contrasts with a noticeable decline in other
sections of the country. The November rate in this district was
35 per cent higher than a year ago and accounted for most of
the year-to-year gain in the United States. In furtherance of the
expanded drilling program for 1945 and to assist in the production and distribution of petroleum products, controls on
critical materials have been relaxed to the extent that operators
may, without authorization, use materials in production, transportation, and refining operations, having a value up to $25,000
instead of the $10,000 limitation previously in effect.
Stocks of above-ground crude oil increased fractionally in the
Eleventh District during November, but at the end of the
month the total of 121,138,000 barrels on hand was about 2 per
cr ent below total stocks held at the end of November, 1943.

3

CONDITION OF THE FEDERAL RESERVE BANK
(Thousands of dollars)
Deo. 15,
Doo. 15,
J944
1943
$540,791
Total oash resorves ..... . ... .. . . ...... . ... . . .. ... . $542,319
303
83
D'scounts for momber banks ........ . ... . .. . . . •.. . .
Nono
Industrial advances ............ . ..... . •.. . ..... . ..
15
003,109
438,725
U. S. Govornment seourities . ................. . • ...
003,472
438.823
'[fe~lbcarbin~ llBSots ...... '.' ........ . . .. ........•.
525.-196
620.709
or nn reservo depos,ts . . .......... . ....... .
540,892
Fedoral Resorvo Notes in actunl ciroulation .... . .... .
407,607

Nov. 15,
1944
$562,623
35S
Nono
631,959
032.312
627,754
531,462

CONDITION STATISTICS OF WEEKLY REPORVING MEMBER BANKS
IN LEADING CITIES
(Thousands of dollars)
Deo. 6,
Dco. 8,
Nov. 8,
1944
1943
1944
Total loans and investments ........ .. ........ .... . S1,059,498 Sl,359,515 $J,M4,711
Total loans . . .. .......... . .....................
402,650
321,960
3.~5,927
Commeroial, ind ustrial, and a~ricu lturnlloalls... .
204,923
221,279
2;0,53;
Lonns to brokers and dealers m securities........
3,081
2,887
2,147
Other loans for purchasi ng or carrying securities. .
04,034
21,037
36,407
21,414
19,778
20,915
Real estate loans .. . . ... . .....................
Lonns to banks.. .... .. .. .. .. ....... . . . . . . . . . .
128
93
100
T All other loans. .. ..... .. ... . .. ... . .. ........ .
40,070
56,886
45,763
0101 investmonts ............. .. ... ...... ...... 1,250,848
1,037,555
l ,J 98,784
U. S. Trcasury billa........ ..... ..............
85,199
104,800
81,284
U. S. Treasury certificates of indobtedncss.......
323,551
278,147
364,063
S. Treasury notes............... ..... . .....
274,500
146,201
218,108
• B. Government bonds . . . . . . . . . . . . . . . . . . . . . . 508,553
410,597
469,248
Obligatiolls guaranteed by United States Gov't. .
20301
46,283
20,629
Othcr securities...... . . . .. ...................
44:084
51,518
44,552
~eserves with Federal Reserve Bank.. ... . . . . . . . . . . .
338,405
293,025
325,483
Dalanees with domestic banks . .. ... .......... . . . ...
224,202
227,740
215,205
T.omndd deposits-ndjusted" .. . ...... . ........... , 1,144,039
1,044,395
1,1 71,469
U,,!!e d ~s'ts'G""" . . . . ..... : . . . . . . . . . .. . . .... .
209,122
159,017
207,574
mtc tates overnmont depos't... .. . .... . .... .. .
260,580
J74,305
J27,194
Interba!,k deposits .... . .. . ........ . ...... .. .. .. . ..
54~J7J8
448,352
52n 455
Borrowln ~s from Fedoral Reservo Bnnk. . . . . . . . . . . . .
None
N ono
iiiono
~Iucludes all demand deposil~ other than interbank and United States Government, less
Ollsh ,terns reportcd ns on hand or III proccss of oollection.

g.

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Average dnily figures-Thousands of dollars)
Combined total
Re"ervo eity banks
Counlry bank.

November
Novomber
July
Aug"t
September
O(ltober
November

Gross
demand
1942 ......... . 82,420,403
1943 .......... 3,289,108
J944 . . ........ 3,601,462
J 044 ......... . 3,655,803
1944 . . ........ 3,666,145
J944 . . ...... .. 3,705, 142
1944 ... .. ..... 3,844,475

Gross
Groos
Time
Time
demaud
demnnd
Time
5228,284 $1 ,363,582 $J27,231 $I,056,S81 $1 01.053 "
255,839 1,750,074 153,980 1,539,03<1 101,859
303,719 1,900,222 187,985 1,701,240 115,734
307, 170 1,925,789 192,204 1,730,104 114,975
315,611
l,9J5,677 198,204 1,750,468 lli.407
324,328 1,920.004 203,i92 1,785,138 120,536
333 ,1 58 1,977,295 210,317 1,~H7,180 122,841

DEBITS TO I NDIVIDUAL ACCOUNTS
(Thousnnds of dollnnl)
November November Petg.ohnngo
1944
1943
over yoar
17,449
+20
Abilone .... ....... ...... $ 20,880
45,889
43,372
+ 6
Amarillo .. .. .. ... ...... .
09,006
-16
58,285
Austill ................. .
57,273
56,675
+ 1
Beaumont .............. .
56,322
43,059
+31
Corpus Christi. ......... .
6,908
6.564
+ 5
Corsicnna . ....... . .. . . . .
559,064
478,815
+ 17
Dallas ............ ..... .
64,814
62,990
+ 3
EI Paso ........... . ...•.
203,314
200,369
+ 1
Fort Worth . ........... . .
44,148
42,348
+ 4
Golveston .............. .
541,086
48J ,850
+ 12
Houston ....... ....... .. .
11,700
10,875
+ 8
Laredo .. . . .. ..... ..... •.
34,830
33,858
+ 3
Lubboek ............... .
20,229
16,410
+2~
Monroe, La ............. .
23,311
22,1 80
+ 5
Port Arthur . ........... .
0,573
8, ~37
+ 7
Roswell, N. M ......... . .
16M8
13,405
+20
Sun Angelo .. . .......... .
112,1S3
134,206
+ 6
San Antonio . . .......... .
85,050
70,974
+20
Shreveport~ La . . . . . .. : ..
22,549
J 7,320
+30
Texarkana ............. .
29,278
20,050
+ 12
Tucson, Ariz . . ........ .. .
22,878
20,976
+ 9
31,893
25.428
+25
28,275
24,035
+15
Wiohita Falls .... . .... . . .

ir~~~·.::: ::::::::: :::: : :

Oetober
1944
18,716
43,850
73,963
54,871
52,726
7,023
548,691
61,520
207,289
43,735
534,674
11,472
29,536
18,896
21,873
8,78S
14,887
140,113
81 ,373
22,006
28,006
22,702
29,872
20,948

Petg.chnngo
over month

tl~
-21
+4
+7

-2
+2
+5

-2

+1
+1
+2
+18
+7
+7
+9
+8

t~

+2
+5
+1
+7
+5

Totnl-24 cities .......... $2,136,436 $1,927,757
+Jl
$2,103,536
+ 2
"Includes the figures of two banks in Texarkana, Arkansns, located in the Eighth Distriot.
SAVINGS DEPOSITS
November 30, 1944
Number of
Beaumont ........ ..... ..
Dnllns ..................
EI Pnso . . .... . ..........
Fort Worth ..........•...
Galveston ... .. .... ..... .
Houston ............... . .
Lubbook ................
Port Arthur .............
San Antonio . .... ... .... .
Shreveport, Lo . .. ....... ,
Waco . .......... .. .. . ...
Wiehita Falls . ...........
All other ................

anks
3
8
2
3
4
10
2
2
5
3
3
3
58

Number of
savings
depositors
11,666
103,680
24,861
30,393
21 ,052
85,389
818
5,490
34,706
30,208
8,347
6,5 14
54,920

Total. ........

106

423,994

ro~rting

Perccnta~o ohongo in
soving8 eposit<l from
Amount of
Nov. 30, October 31,
savinJ!8
depos,ts
1943
1944
$ 6,020,255
+24.4
+ 1.1
48,867,915 +42.4
+ 2.5
14,812,829 +43.0
+ 1.9
22,678,J81 +37.0
+ 2.4
15,717,315 +22.0
+ 1. 6
49,806,800 +28 .8
+ 2.0
531 ,499 +13.5
- .7
4,155,349 +24.7
+ .4
30,147,582 +34 .7
1.9
18,283,972 +35.8
2.1
0,139,57 1 +29.0
+ 1.0
3,977,539 +12 .0
+ 1.0
37,061 ,491 +25.7
+1.5

t

$258,209,298 +32.4

+ 1.9

4

MONTHLY BUSINESS REVIEW

Stocks of crude oil outside this district declined about 2 per
cent in November and at the end of the month totaled 100,453,000 barrels, or about 16 per cent lower than a year earlier.
In August and September this year, the value of construction
contracts awarded in the Eleventh District showed a sharp recovery from the low level of awards during the summer months,
but declined substantially in October. In November the value
of awards increased 30 per cent over that in October but was
still considerably below that in either August or September;
nevertheless, total awards of $14,000,000 during November
were nearly double the exceptionally low volume in November,
1943. The largest increase over both the preceding month and
the corresponding month last year was in non-residential building. Residential building has been at a low level for several
months, with the result that awards during the first eleven
months of the current year were about 72 per cent smaller
than in the corresponding period of 1943, whereas the decline
in total construction amounted to 53 per cent.
Reflecting in part the effects of adjustments in ceiling prices
on some cotton goods and the efforts to relieve the manpower
shortages at cotton textile mills, the consumption of cotton at
United States mills rose to 837,000 bales during November,
which was about 5 per cent larger than in October but 3 per
cent below that in November last year. In view of the shortages of many types of cotton goods for civilian consumption
and the increased demand for and the critical shortages of certain types of goods for military use, extensive efforts are being
made to expand production. Early in December, the Office of
Price Administration announced revisions in ceiling prices,
based on cost studies, for some cotton products; and on De"cember 15, suspended ceiling prices on sales of duck to the
Army and Navy for a period of ninety days.
In Texas, cotton consumption, which had been declining for
several months, increased slightly in November. In order to relieve the acute shortage of war-vital cotton duck and tentage,
efforts are being made to bring about maximum production at
the State's textile mills, and present plans call for placing the
mills on a twenty-four hour day, seven-day week basis. In this
connection, studies are being made of problems relating to manpower, wages and working conditions, and consideration is being
given to the release of some skilled textile workmen from the
Anned Forces for return to the mills.
Stocks of cotton at mills in the United States increased by a
smaller amount than is usual during November, and the total orf
2,210,000 bales on November 30 was the smallest for that date
since 1940. Cotton stocks held in public storage and compresses
on November 30 totaled 13,186,000 bales, which was about 2
per cent larger than a year earlier. This increase about offset the
year-to-year decline in stocks at mills.
According to the War Mobilization Director, authorizations
for conversion to production of civilian goods under the "spot
authorization" program, which had made fair progress since it
was instituted on August 15, may be discontinued and production under the authorizations halted by the Government if the
labor situation in war industries does not greatly improve.
Through December 1, some 80 finns in the Eleventh District
had been given permission to convert to the production of items
for civilian consumption, with most of the firms being engaged in the manufacture of household necessities, such as beds
and innerspring mattresses.
Cottonseed receipts at Texas cottonseed oil mills during November totaled 216,515 tons, representing an increase of 26 per
cent above the receipts for the same month a year earlier, hut
were approximately 16 per cent below receipts for October this
year. Total crushings in Texas for the month of November
were 135,043 tons as compared with 163,921 tons a year ago

and 116,982 tons last month. Cottonseed on hand at Texas
mills on November 30 this year totaled 380,087 tons, or 12 per
cent more than the 339,322 tons on hand at the end of November last year.
WHOLESALE AND RETAIL TRADE STATISTICS
------Percentage change i n : : - - - - Number
Net sales-------SStockst-of
Novernbcr 1044 from
Jan. 1 to
November 1044 from
Nov.
Ootober Nov. 30. 1044
Nov.
October
rcporting
Retail trade:
firms
1043
1044
from 1943
1043
1044
Department stores:
Total 11 th Dist. .. .
47
+ 10
+10
+ 15
+ 5
- 5
Dallna ........... .
7
+ 15
+ 11
+10
+13
- 3
Fort Worth ...... . .
+12
+"
+ 11
3
Houston .. ... ..... .
7
+ 12
+4
+ 14
San Antonio ...... .
4
+23
+14
+14
- 5
- 4
Shreveport, Ln .. . .
3
+ 14
+ 5
+ 16
Othor cities .. . .. . . .
23
+20
+ 15
+14
Retail furniture:
Total 11th Dist ... .
63
-5
+14
-6
+ 6
Dall............. .
6
+14
- 13
-8
+8
EI Pnao .......... .
3
- 18
-10
+ 12
+10
Houston .......... .
8
+11
+5
lO
-2
Port Arthur .. .. . . .
a
San Antonio .. ... . .
4
27
-i
+10
Shreveport. Ln ... . .
- I
3
+2
-t
+6
Wichita Falls ... . . .
3
+6
+t
Independent stores:"
- 1
Arizona . . . . . . .... .
154
+0
+3
New Mexioo ..... . . 131
- 1
+ 17
+10
Oklahoma ........ . 381 •
+12
+ 10
+6
Texas .... ........ . 960
+12
+ 11
+5
Wholesale trade:"
Automotive supplies
4
+32
+ 8
Drugs........... ..
5
+11
- 3
Groceries....... .. .
28
+ 8
+ I
Hardware. .. ......
12
+11
+10
Tobacoo &: produots.
3
- 13
- 6
· Compiled by United States Bureau of Census (wholesale trade figures preliminary).
~Stocks at end of month.
tCbonge less than one-half of one per oent.

+'3

t

:.::0

·:. ::8

INDEXES OF DEPARTMENT STORE SALES AND STOCKS
November
O~tober
September November
1044
1044
1044
1943
Sales (1085-1030= 100)'
Without se..onal adjustment ....... .
314
272
265
260
With se..onal adjustmont ......... . .
264
252
241
227
Stoeks (1923 ..1025 = 100)
Without senaonal adjustment . ...... .
121
125
122
111
With se..onal adjustment .......... .
108
110
111
00
'Sales index revised.
CRUDE OIL PRODUCTION-{Barrels)
November 1044
Inorease or decre..e in daily
average produotion from
Total
Dailyavg.
produotion
produotion
Nov. 1043
Ootober 1044
7,864,500
North Tex...... .. .. ... . . ... . .
245,483
+ 17,443
- 1,006
. West Toxna ................. . 14,250,000
475,030
-16,730
+115,560
E..t Texas ................. . 15,380,400
512,080
- 7,410
- 1,417
South Tcxna ............ .... . 10,391,000
346,367
+11,270
+ 48.807
Co..tal Texna ............... . 16,575,200
552,507
+ 28,257
+13,086
Total Texas .... . . .
New Mexico ... .... .. ..... . . .
North Louisiana .......... . .. .

08,071 ,000
3,146,050
2,160,850

2,132,367
104,868
72,328

+208.650
- 7,802
- 6.415

Total District.. . . . . 60,286,000
2,300,503
+ 194,343
SOURCE: Estimated from American Petroleum Institute weekly roports.

080
+ 898
- 1,074
-

1,606

VALUE OF CONSTRUCTION CONTRACTS AWARDED
(Thousands of dollars)
November Novomber
Ootober January 1 to Novemher 30
1044
1043
1044
1044
1043
Eleventh District-total .. . $ 14,000
$ 7,206
$ 10,408
$148,364
$3 18,221
Residelltia\. ......... . .
1,289
2,583
1,517
22,816
81,151
All other .. ......... .. .
12,711
4,683
8,081
125,548
237,070
United Statcs·-total. ... .
164,850
184,390
144,845
1,805,535
3,627,048
Rasidentia\. .......... .
23,288
58,384
23,805
324,541
008,784
All other ............. .
141,562
126,015
121,040
2,718,264
1,480,004
"37 states enst of the Rooky Mountains.
SOURCE: F. W. Dodge Corporation.
BUILDING PERMITS
Percentage change
Percentage
valuation from
,Tan. 1 to Nov. 30, 1044 .hans"
~ valuation
Valuation Nov.l043 Oct.l044 No.
Valuation from 1048
$ 4.015
- 15
- 85
231 S 336,355
46
147,200
+134
818
" - 25 1,141 1,213,085 + 00
61,844
+ 84
666,870
05
48,048
- 35
1,409
- 42
700,836 - 65
lli2,370
- 47
1,401
1,035,086 - SO
+ 95
301,032
- 50
6,650
- 15
6,843,041
40
48,167
+ 34
826
1,332.134
215
- 64
276,102
- 51
-16
2,757
3,202,506 - 40
24,542
-73
- 67
818
068,183 + 1
511,551
2,705
+ 41
- 57
8,707,125 + 17
78,741
!,S89
- 11
+214
1,032,856 +848
20,361
+ II
2
686
288,408 - 4
408,768
+160
- 43
0,884
4,288,867
67
214,476
1,734
+324
1,380,726
270
+ 76
48,200
- 27
760
1,273,052 + 78
+ 131
24,404
+120
325
+ 53
256,431 + 87

November 1044
Abilene ..........
Amarillo ... .. ....
Austin ......... . .
Bonumont .. . . ... .
Corcus Christi ....
Dal na .. .........
EIPlIIlo ......... .
Fort Worth .......
Galveston ........
Houston ..... . ....
Lubbook . . .. . ....
Port Arthur ... . ..
San Antonio . .....
Shreveport, Ln .. ..
Waoo ............
Wiehita Falls •....

No.
12
81
120

no

117

534
50
288
60
287
104
73
776
182
38
20

t
t

-

-3

Total .. .... 2,870 $2,450,911
'Indicatos change over 1,000 per cent.

- 33

t

33,223 $34,580,457

+ 12

'.

MONTHLY BUSINESS REVIEW
SURVEY OF DEPOSIT OWNERSHIP IN THE ELEVENTH FEDERAL RESERVE DISTRICT:
JULY 1943, FEBRUARY 1944, AND JULY 1944
Because of the tremendous growth of bank deposits during
the war period and a growing need for more definite knowledge
as to the ownership of these deposits, the Federal Reserve System
in July, 1943, undertook a periodic nation-wide survey of demand deposit ownership in the member banks, This survey,
using a somewhat larger sample of banks, was repeated in Feb. .
ruary, 1944, and again in July, 1944. It is the purpose of this
sun1mary to present very briefly some of the results of these
deposit ownership surveys in the Eleventh Federal Reserve
District.
The procedure used in making these surveys is to prepare
a representative sample of member banks in the District and
then to request the banks in the sample to report the ownership
of the demand deposits in their institutions as of a certain date.
Only demand deposits owned by business concerns, individuals,
and non-profit organizations are reported. In the ~rst survey,
reports were received from the 33 weekly reportmg member
banks and from 77 other member banks, a total of 110 institutions. In addition to the weekly reporting member banks, the
second survey included 88, and the third survey 84, other member banks. Without the generous cooperation of these banks
in preparing the reports, the survey would, orf course, have
been impossrbJe.
The reports received from the banks in the sample are tabulated and these totals are then expanded proportionately by type
of o';"nership in order to arrive at aggregate esti~ates for ~ll
commercial banks in the district. The figures wh1ch appear 111
Tables 1, 2, and 3, therefore, represent only esti~ates of deposit
ownership in all banks in the District. There 1S every reason
to believe, however, that the estimates are approximately accurate. It should also be emphasized that the estimates do not
reflect the grand total of demand deposits held by banks in the
Eleventh Federal Reserve District but only those demand deposits which are owned by business concerns, individu~ls, and
non-profit organizations. At the present time, such pnvatelyowned demand deposits represent about two-thirds of the grand
total of demand deposits carried in the District.
One other observation should be made: the various War
Loan Drives exercise great influence on the pattern of demand
deposit ownership, In general~ as a drive proceeds, demand deposits are transferred from .busmess and personal accounts to government accounts. Later, as the Treasury expepds its funds,
these balances are retransferred back from government to private ownership. This situation has a sigruficant bearing on the
results of the three surveys already made. The first survey was
made about midway between the Second and Third Drives, at
a time when Treasury balances were being drawn down and
private balances were building up. The second and third surveys, however, were made just two and thr~e weeks after the
close of the Fourth and Fifth Drives, respectively, when Treasury balances were near a peak and private balances much below
their normal level. Had these latter surveys been made two or
three months later, it is probable that privately-owI?-ed demand
deposits would have been substantially greater.
Table 1 presents the estimated dollar amounts of demand
deposits owned by various classes of owners as of the three rep~rt
dates, together with the percentage changes from the earher
report dates to July, 1944, To save space, the figures are rounded
to the nearest 10 million dollars.
Reference to Table 1 indicates that total privately-owned
demand deposits in the Eleventh Federal Reserve District increased by $430 million, or 18 per cent, during the twelve

months following the first survey. This rate of increase was
sub,stantially greater than that for the country as a whole,
wh1ch was slightly over 7 per cent. Apparently, military expenditures are continuing to bring about a net inflow of funds
into the Southwest. Of the total increase, approximately $11 0
million was owned by non-financial business and $330 million
was owned by individuals, including farmers. Non-profit organiza~ions, however, experienced a decrease of approximately
$10 m111ion. The increase of 9 per cent in business-owned funds
compares with a slightly less than 4 per cent gain in such deposits for the country as a whole. The 28 per cent gain in personal deposits contrasts with an increase of only 16 per cent for
the entire country.
TABLE L ESTIMATED OWNERSHIP OF DEMAND DEPOSITS OF INDIVIDUALS
PARTNERSHIPS, AND CORPORATIONS
'
All banks in the Eleventh Federal Reserve District
Perccntage change to
(Amounts in millions of dollars)
July 31, 1044 from

i

CIIIBB of account
JUly 31,1944 Fcb.29,1944 July 31,1943 July 31,1948 Feb,29,1044
Total domestic ~usinc"!,.,, $1,220
$1,200
51,120
+ 0
2
1,080
1 050
970
+ 11
3
Total non-finanCial buslDess
L Tota! mf~. ~ mining .. ,
320
'310
250
+28
8
2, Pubhc utilitIes.. .. .. ..
130
120
110
+ 18
8
3. Trado,.... ...........
470
450
420
+12
+ 4
4. Othor non-financial. .. ,
160
180
180
-11
-11
o. Insurancc" ...... .. , , 6 0
60
60
0
0
6. All other finnncinl.....
80
80
80
0
0
7. Trust funds of bnnks. .
10
10
10
0
0
8 Non-profit ... ,... . ....
50
70
60
-17
-20
9. Personnl .......... , ..
1,510
1,350
1,180
+28
+12
Totnl. ....... :.. S2,790
52,620
82,360
+ 18
+ 7
Notc: Figures are roundcd to nenresL 10 million dollar. so dotnil mny not add to totals.

. In this connection, it is interesting to note that the proportI.on 0.£ total demand deposits owned by individuals is extremely
high m the Eleventh Federal Reserve District. For the Dallas
District, the proportion of personal to total demand deposits was
50 per cent in July, 1943, and 54 per cent one year later. Corresponding figures for the country as a whole were 29 per cent
and 31 per cent, respectively. For the Eleventh District, individual ,de~1and deposits are not ?nly relatively large but they
are contmumg to grow more rap1dly than business-owned deposits. A partial explanation is that business concerns probably
bought government securities much more heavily in the Fourth
and Fifth War Loan Drives than did individuals.
TABLE 2. ESTIMATED~OWNERSHIP OF DEMAND DEPOSITS OF INDIVIDUALS,
PAR'l'NERSHIPS, AND CORPORATIONS CLASSIFIED BY SIZE GROUPS
OF BANKS AS OF JULY 1944"
All banks in the Elevcnth Fcderal Reserve Districtt
(Amounts in million. of dollars)
CIIl8S 1II
bank.

Class IV
bank.

% of
totnl
62.2

%of
Am!. total
$724.757.3

% of
Amt. total
5368.0 32.5

%of
%of
Amt. total Amt. total
$47.4 18.0 $1221.6 43 .8

51.7

Oa9.3 50,6

332.7 20.4

43 . 1 10.4 1082.8 38.8

19.2

220.8 18 .0

10.8
16.2

80.4 6.8
229.9 18.2

CIIIBB II
bank.
CIIIBB of noeount
Total domcstic Amt.
business .... , $81. 5
Totol non-finnneial business. 07.7
1. To~n! mfg. '"
IDlOlng .. . • 25.1
3. Public
utilities .... 14. 1
3. Trude ...... 21.3
4. Other nonfinancial. .. 7.2
5. Insurance .. 8.3
O. All othor
finnnoial .. , 5.5
7. Trust funds
of bonks .. , 1.9
8. Non-profit
organizations 8.9
9. Personal .. . 48.7

a. Farmers ..

b. Others ...

63.7

Olass V
bank.

5.0

23.4 2.1
188.6 10.7

3.5

All bnnk. in
District

1.3

310.1 11.4

2.1
.8
33.2 12.7

126.0 4 .5
473.0 17.0

5.5
0.3

90.2
33 .2

7.6
2.6

57.0
13.0

5.0

1.1

4.3
1.6

1.6
.6

104.7
56.1

5.9
2.0

4.2

52.2 . 4.1

22.3

2.0

2.7

1.0

82.7

3,0

.6

3.0

.3

.1

.1

13.9

.5

1.4
3.0
33.4

8.0

28.8 2.3
502.5 39 ,8

13.7 1.2
740.4 66.0
185.3 10.4
501.1 49.0

2.1
.8
48.5 1.7
213.4 81.1 1500.0 54.0
89.1 33.0
124.3 47,2

Grand totol.. .. $131.0 100.0 11264.0 100.0 $1132.0 100.0 $203.0 100.0 $2790.0 100 .0
"Amounts are rounded to nenrest $100,000.
tC11IBB II banks~emand deposits $100,000,000 to $500,000,000.
Class III bank.~emand deposits $10,000,000 to 5100,000,000
Class IV banks~emnnd deposits 51,000,000 to $10,000,000.
CllIBB V banks-dcmand deposits less thn? $1,000,000.

MONTHLY BUSINESS REVIEW
Table 2 presents the estimated distribution of demand deposit
ownership arranged on the basis of bank size groups. The figures
indicate clearly the trend for business-owned deposits to bulk
quite 'large in the larger institutions. In banks having demand
deposits in excess of $100 million, business-owned deposits accounted for 62 per cent of the total; whereas in banks with
deposits less than $1 million, this proportion dropped to 18 per
cent. Conversely, the percentage of personally-owned demand
deposits increased steadily from 33 per cent for the largest
banks to 81 per cent in the case of the smallest institutions. This,
of course, is what would normally be expected.
Banks with total demand deposits above $10 million were
not requested to report farmer~owned deposits separately, and
this renders impossible any estimate of the total demand deposits
thus owned in the District. However, figures reported by banks
with total deposits of $10 million or less indicate that in these
institutions farmer-owned deposits approximated 20 per cent
of total demand deposits.
As in the case of the earlier surveys, the July 1944 survey
called for a classification of account ownership according to
size of balance. However, the current classification schedule differed from that used earlier, which renders impossible an accurate comparison on a size basis of the results obtained in the
three surveys.
To illustrate the ownership distribution according to size 00
account, Table 3 was prepared. This Table shows estimates only
for the group of banks having demand deposits of $1 million
to $10 million and, therefore, does not reflect the situation for
all banks in the District. Inspection of this Table indicates clearly the tendency for business-owned accounts to bulk relatively
large in balances above $3,000, while personally-owned accounts reveal the opposite trend. It is interesting to note, how-

ever, that 32 per cent of all demand deposits in accounts over
$25,000 was estimated to be owned by individuals, almost onethird of which was credited to farmers.
TABLE 3. ESTIMATED OWNERSHIP OF DEMAND DEPOSITS OF INDIVIDUALS
PARTNEH.SHIPS, AND CORPORATIONS IN CLASS IV BANKS, CLASSIFIED BY
SIZE OF ACCOUNTS AS OF J ULY 1944'
All banks in tho Eleventh Fodoral Reserve District having total deposits
from $1,000,000 to $10,000,000
(Amounts in millions of dollars)
Accounts under Accounts from Accounts from Account.~ over
S3,OOO
S3,OOO to $10,000 $10,000 to $25,000
$25,000
Per ecnt
Percent
Per cent
Clas, of aceoun t
Total domestic busi- Amount of total Amount of total Amount of totnl
business.. .. .. ... $82.9
15 .0 $93.9
36.4 $76 .7
53.8
Totnlnon-financial
business ... . . .... 82. 0
15 .0
8U
82.6
68.9
48.3
1. Totnl mfg. and
2.0
mining. .. .. . . ... 11.1
0.0
3 .5
11.2
7.0
2. Public utilities .. . .
0
0
5.0
2 .3
6. 1
4.3
8. Trade .. . ......... 55.2
10 .0
55.2
21.4
42.0
20.4
4. Other non-financial 16 .6
3 .0
14.0
5.4
0.6
6.7
6. Insurance . .. . ....
6. All other financin!.
7. Trust fu nds of

banks ...... . ... .

0
0

0
0

2.3
7.5

.9
2.9

2. 1
5.7

1.5
4.0

Pcr rent
Amount of total
$114.5

64.0

06.8

54 . 1

32 .4
11 . 4
36.2
16 .8
8.6
0. 1

18 . 1
6.4
20.2
9.4
4.8
' 5.1

0

0

1.8

.7

.3

.2

1.8

1.0

organizations. . . .
0
9. Personal. . . . . . . .. 469 .5
n. Farmers ........ 110.11
b. Others ... .. .... 359.0

0
85. 0
20.0
65.0

5.7
156.7
41.3
115.4

2.2
00.7
16 .0
44. 7

3.0
62.6
17.0
45.6

2.1
43 .9
11.0
32.0

5.0
57.6
16 .5
41.1

2.8
32.2
9.2
23.0

100.0 $178.9

100.0

8. Non-profit

Grand total. ......... $552.4 100 .0 S258. 1 $100.0 $142 .6
'Amounts arc rounded to nearest SI00,OOO.

One other point deserves mention. The July 1944 survey for
the first time asked that business-owned deposits be reported
separately for incorporated and unincorporated business concerns. The purpose in seeking these figures was to obtain estimates as to the volume of demand deposits owned by single
enterpris.es and partnerships, concerning which information
hitherto has been almost totally lacking. On this basis, it was
estimated that of the $1,222 millions of 'business-owned demand
deposits in the District, $714 million, or 58 per cent, was owned
by corporations. As might be expected, the proportion of
corporation-owned deposits varied widely from industry to industry, being largest for public utilities and insurance companies and smallest in the case of trading concerns.

MONTHLY BUSINESS REVIEW
JANUARY 1,1945

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

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1940

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100

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120

1944

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INDUSTRIAL PRODUCTION

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1940

1942

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1944

Federal Reserve indexes. Groups are expressed in
terms of points in the toral index. Monthly figures.
btcs[ shown are for November.

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O.PAFITMEIIT S rOR~ SALES AND srOCKS

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160 ••__

180

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160

Output at factories and mines showed little change from October to November. Retail trade
expanded further ro new record levels.
INDUSTRIAL PRODUCTION
Industrial output in November and the early part of December was maintained at approximately
the same level that had prevailed during the previous four months. Production of durable goods
declined slightly in November, while output of other manufactured goods, especially war supplies,
increased somewhat further and mineral production was maintained in large volume. Output of critical
war equipment was larger in November than in October but was still behind schedule, according to the
War Production Board.
Activity in the durable goods illdustries, particularly machinery, transportation equipment. and
lumber, continued to be limited in part by manpower shortages. Employment in the transportation
equipment industries has declined by about one-fifth during the past twelve months, but total output
of aircraft, ships, and combat and motor vehicles has declined by a much smaller amount owing to
greater cJficiency.
In most nondurable goods industries, production was somewhat greater in November than in the
previous month. Activity at explosive and small-arms ammunition plants increased, reflecting enlarged
war production schedules, and output in most other branches of the chemical industry also expanded,
reaclling levels above those of a year ago. Production in the petroleum refining and rubber industries,
chiefly for war uses, increased somewhat in November.

140

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Output of manufactured foods showed less decline than is usual for this season and was as large
as in November 1943 . In the textile industry, output at woolen and worsted mills continued to advance
in October from the reduced level of operations prevailing during the summer. Cotton consumption in
November was above October and rayon deliveries were at a new record level.

Federal Reserve indexes. Monthly figures. latest
sho,,", n are for November.

Mineral production was maultained in November. Coal output Was one-fifth larger than in November 1943 when operations were sharply reduced by a work stoppage. In the e.ely part of December,
however, coal production was nearly 10 per cent less than in the same period h st year.

QOVERHMENT SECURITY HOLDINGS OF BANKS IN LEADING OITIES

DISTRIBUTION

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1"1 4100

,114 1

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1943

1944

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'i39

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Railroad freight carloadings, adjusted for seasonal changes. were m.intained at a high level in
November and the first two weeks of D ecember. Shipments of most classes of freight, however. were
not quite as great as the exceptionally large movement of freight during the same period last year.
COMMODITY PRICES

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1840

Value of department store sales in November was 14 per cent above the exception.lly high level
last year, about the same year-to-year increase which prevailed in the previous four months. In the
first h.l£ of December, sa les were about 20 per cent hrger than last year. All Pederal Reserve districts
have shown large increases over last year in pre-Christmas sales.

1941

1942

1943

1944

Excludes guaranteed securiri.es. Dara nor available
prior co FebruarY_II. 1939; certificates first repoered on
April 15, 1942. Wednesday figures, latest shown are
for December 13.

Changes in wholesale prices of agricultural and industrial producrs were mostly upward in November and the early part of December. Retail prices of foods and various other commodities were slightly
higher in November than in October. During the past year there has been a slight upward tendency in
prices of most commodities. both in wholesale and ret.il markets.

MEMBER BANKS IN LEADING CITIES

BANK CREDIT

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10

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1~40

Iq41

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1943

1944

Demand deposits (adjuste.d) exclude U. ~. GC?vern.
men! and interbank depOSIts and collection Items.
Gov"roment seruriries include direct and guaranteed
is~ues . \'(fcdnesday figures, Iarest shown are for December 13.

Banking developments during the four weeks ended December 13 were largely determined by the
Sixth W.r Loan Drive. Government deposits at weekly reporting banks in 101 cities increased by approx·
imately 8 billion dollars while adjusted demand deposits of individuals and business were drawn down
about 2.6 billions in payment for securities purchased. TI,e reporting banks added 3.7 billion dollars
to their holdings of Government secu rities and increased their loans by 1.7 billion.
As a result of the transfer of deposits of individuals and businesses to war loan accounts, reserves
required by member banks declined about 700 million dollars from the beginning of the Drive through
mid-December. In addition. reserve funds were supplied to the b.nking system through the purchase
by the Federal Reserve Banks of 640 million dollars of Government securities. These .dditional reserves
were used in part to reduce member bank borrowings at the Reserve Banks, which had risen to ne.rly
600 million dollars in the latter part of November, and to meet the demand for currency. This demand,
though slackened somewhat by the War Loan Drive, amounted to 450 million dollars for the four
weeks ended December 13. Excess reserves increased by 300 million dollars, principally at country banks.