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MONTHLY BUSI N ESS REVIEW

of

the

FEDERAL RESERVE

Volume 26, No.5

Dallas, Texas, July I, 1941

BANK

o f

Dallas

~~~~~~~~~~~~~~~~==========~============~~~==~~~~~~~~~~~~~==~~~~==
This CODY is r eleascd for pub·
lication in morning p nDcrs-

J une 3 0

~~~~~~============~================================~==========================~~~~==~====

DISTRICT SUMMARY
increases of 7.9 per cent in employment and of 17.9 per cent
I)'Di~tribution of commodities to consumers in the Eleventh in payrolls were reported, reflecting substantial gains in virtuIStnct showed a further gain in May, and industrial output ally all lines of manufacturing and at trade and service estaband the production of minerals also increased. Employment lishments. According to available data, it appears that the
and payrolls continued to expand. National defense contracts number of non-agricultural workers in Texas during May
awarded in Texas prior to May 31 were valued at slightly more exceeded the 1940 peak, recorded last December, by about
th a? $5 00,000,000, including contracts valued at $173,000,000 2 per cent.
whIch were let in May. Department store trade in May and the
The number and liabilities of business failures among manulirst half of June was nearly one-fourth greater than a year facturing, trade, construction, and commercial service estabago, and the distribution of merchandise through reporting lishments in this district increased in May to a level somewhat
higher than in the corresponding month last year. Dun & BradWholesale firms in this district was 19 per cent higher than in
~ay, 1940. The value of construction contracts awarded dur- street reported 35 insolvencies during the month, with liabili~ng the month was somewhat smaller than the record attained ties totaling $371,000. Thus far this year business failures
In A.pril, but nearly double that in May last year. Output of have been 40 per cent more numerous than in the comparable
Crude petroleum rose sharply and refinery operations reached period of 1940.
AGRICULTURE
? newall-time peak. Consumption of cotton at textile mills
In Texas declined in April, but continued at a much higher
Heavy rains over wide areas of the Eleventh District during
fate than a year ago. Weather conditions were generally un- May and the first half of June delayed further the planting
liavorable to crops during the final two weeks of May and the and cultivation of row crops, damaged small grains and hay,
rst half of June, but conditions in the livestock industry are and interfered with the harvesting of wheat, oats, and barley.
good to excellent throughout the district.
The prolonged period of wet weather has also increased the
BUSINESS
danger of crop damage from rust and insect activity. In fact,
Reflecting to a considerable extent the effects of increased a considerable amount of wheat has already fallen due to high
purchasing power, resulting mainly from rising employment winds and rust, and the early appearance of boll weevils and
and payrolls and higher cash farm income, consumer purchases fleahoppers in cotton fields has caused farmers to begin poisonit retail establishments in this district continued to expand. ing operations much earlier than usual. Despite the unfavorable
n May, department store sales rose by more than the average factors that have affected crop development thus far, the outseasonal amount and exceeded the May, 1940 total by 23 per look for agricultural production on the whole remains genJent . A heavy demand continued during the first half of erally good due to the excellent season obtaining in all sections
f une, when sales at weekly reporting firms averaged about one- of the district. The prospective production of grain crops is
;urth higher than in the corresponding two weeks of 1940. well above the 1930-1939 average. The Texas cotton crop
6. he aggregate value of department stores' sales during the made f airly good progress during May and early June, though
rs~ five months of 1941 was 14 per cent greater than in that washing rains have necessitated considerable replanting. There
period a year earlier. According to the United States Depart- is urgent need for dry, sunshiny weather to enable farmers to
ment of Commerce, the distribution of merchandise through proceed with planting and cultivation of crops and with grain
: a.il outlets in Texas other than department stores during the harvesting.
According to the Department of Agriculture, the indicated
tlal five months of the current year averaged 18 per cent
gr~ater than in that period of 1940, with the most pronounced production of wheat in Texas on June 1 totaled 56,116,000
galU~ being recorded in sales at country general, jewelry, auto- bushels, but the severe damage from excessive rainfall, high
mOtive, furniture, and lumber and building materials stores. winds and rust during the first half of June reduced the
Inventories of merchandise at reporting department stores estimate to 45,914,000 bushels on June 16. This figure com~ere reduced 6 per cent in May, but at the month-end value pares with a ten-year average yield of 31,360,000 bushels, and
a stocks was still 4 per cent higher than a year ago and orders the record crop of 67,983,000 bushels harvested in 1931. The
iUtstanding on May 31 were nearly double those on that date Oklahoma wheat crop was also affected adversely by heavy rains
aSt year.
early in June. Some fields, particularly in the southwestern
t Wh?lesale trade, as reported by 74 firms in eight lines of
REPORTING MEMBER BANKS IN LEADING CITIES
rade In this district, increased moderately from April to May,
~nd sales were nearly one-fifth greater than in the correspond~,ng month of 1940. Sales in most lines of trade participated
In dthe gain over May last year, with the distribution of durable 700 i-.J---+----j----t----t-- - - t- --::!V-=----I'oo
. t he
6.an seml_. d urable goods recording the largest gains. Durmg
rst five months of 1941 cumulative sales of hardware and ""'1-.J----l----!---'''"""-t----::!-r--''''-'--t----Jbo- - -1 000
~afhinery were sharply higher than in that period a year
r ler, and aggregate sales of all reporting firms averaged
~hOUt.I 5 per cent larger. The dollar value of stocks of merI'lttat dlse at reporting wholesale firms in this district evidenced
t , e change in May, but at the month-end the value of inveno~es was 20 per cent greater than on that date last year.
n employment
and payrolls in Texas, as reported by the
£ur au of Business Research of the University of Texas, rose
Urt her from April to May. In comparison with a year ago, '00 !r....
J.ili.J..l.1.l...u..u
"-'-'.l.u.u.LLJ..I..u.w.J..l.1.l-':':'-'c.J.U.J.L.u.,":,-,.J..I.1.I-'-'+'u..,:,:,,,~L.I..U-'-'--':'::-u..l.l.ll,,"",=L.>..U..v,j'oo
[ L.EVENTH r f DERAL RU CRVC

DI5TRICT

b

,

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

2

MONTHLY BUSINESS REVIEW

portion of the State, are expected to be completely abandoned,
Cash income of farmers in this district from crop and liveand the prospective per acre yield has been reduced gene~ally. stock marketings averaged 30 per cent higher in the fi.rst
The June 16 estimate of 60,156,000 bushels compares With a quarter of the current year than in the corresponding penod
forecast of 71,296,000 bushels on June 1 and a harvest of 56,- of 1940. However, Government benefit payments to farmers
332,000 bushels in 1940. The indicated production of wheat for compliance with the provisions of the Agricultural Adjustin New Mexico is somewhat higher than the 1940 harvest, ment Administration were 18 per cent smaller than in that
whereas, in Arizona a much smaller harvest is forecast. The period of 1940, with the result that the total income showed
indicated production of oats in Texas was placed at 39,803,000 an average gain of only 15 per cent.
bushels on June 1, which compares with a 1940 harvest of
FINANCE
37,125,000 bushels. Since much of this crop had been harvested
On May 22 the Secretary of the Treasury invited c~sh sub£
prior to the June rains, the weather damage was not ~s severe scriptions in the amount of $600,000,000 to a new Issue 0
as in the case of wheat. The acreage sown to barley m Texas 2 liz per cent Treasury bonds dated June 2. In addition, holders
was greatly increased this year, and the production forecast as of the 3 Y4 per cent Treasury bonds maturing on August IJ
of June 1 was placed at 9,450,000 bushels, indicating a record 1941, outstanding in the amount of $834,000,000, were off.ere
crop.
the privilege of exchanging these securities for the new Issue
The Texas corn crop has made fairly good progress under of 2 liz per cent Treasury bonds or for the two-year, % pe~
the handicap of a late start and excessive moisture. On June 1 cent, Treasury notes dated March 15, 1941. In the Eleven t
the condition of this crop was placed at 67 per cent of normal, District, cash subscriptions to the 2 liz per cent Treasury bond;
as compared with an average. o~ 72 per cent .on the corre- amounted to $206,645,000 against which allotments 0
sponding date last year. The mdlcated productIOn of peaches $16,545,000 were made. Exchange subscriptions and allotin Texas was lowered 149,000 bushels in May; nevertheless, if ments in this district aggregated $2,977,000.
the June 1 forecast of 2,261,000 bushels is realized it will be
Reflecting chiefly purchases of the new issue of 20 'per
the largest peach crop since ~9.19..
.
cent Treasury bonds, holdings of Government direct obligaAlthough widespread preclpltatlOn m May and early June tions by weekly reporting member banks in this district ro:t
was unfavorable to crops, livestock ranges continued to im- $7,700,000 between May 14 and June 11. On the other han,
prove throughout the district. Their condition averaged 95 investments in corporate and municipal securities and ~n Gor
per cent of normal on June 1, which was near the highest ernment guaranteed obligations were reduced consl~erab Y
figure ever reported by the Department of Agriculture. In during the four-week period, with the result that total mves t some areas the feeding quality of range grass has been lowered ments showed a net gain of only $4,500,000.
by the prolonged period of wet weather, but good summer
Outstanding loans at weekly reporting member banks
grazing is virtually assured in most areas. The condition of showed little net change between May 14 and June 11. Comlivestock continued good to excellent during May. Cattle mercial, industrial and agricultural loans declined further by
responded to the. favorable range conditions, ~howing substan- $2,000,000, but this contraction was about offset by an e"d
tial gains in weight. Althoug~ sheep were m go?d flesh on pansion in "all other" loans, consisting largely of personal ~n
June 1, animals were not takmg on flesh a~ rapldly as had instalment loans. The volume of "all other" loans outstandmg
been expected earlier, and as a result, marketmgs of grass-fat is now at the highest level of record, exceeding that of a year
yearlings were delayed. Sheep shearing, which had been re- ago by $12,600,000. On June 11, total loans and investmentS
tarded by unfavorable weather, was nearly completed by June at reporting banks were $79,000,000 greater than a year
15. Shipments of cattle from this district during May cont
tinued lighter than a year ago, and while demand for fall ~~~
The total of combined gross demand and time deposits ~
delivery was active, cattlemen have been hesitant to sell due
all member banks in this district showed a substantial gam
apparently to excellent range conditions and the possibility of during the first five months of the current year, contrary to
obtaining higher prices at a later date.
the usual trend at that season. During May, daily avelra~e
WHOLESALE 'AND RETAIL TRADE STATISTICS
deposits were at an all-time peak, exceeding the tota III
--====iN.tPerccntage change in:
..,
Number ;.
Nct sales---v--Stocks---.,
of
May, 1041 from
Jan. 1 to
May, 1041 from
reportiDg
May,
April,
May 31,1041
May,
April,
firms
1040
1041
from 1040
1040
1041
45
+23
+10
+14
+ 4
- 6
74
+10
+
7
+11
+
5
+18
+11
+14
- 1
_ 34
7
+22
+ 0
+13
- t
- 4
5
+38
+22
+24
+ 0
-21
3
+17
+12
+11
20
+27
+ 8
+16

Retail trade:
Dcpartment stores:
Total 11th Dist .. ..
Da II as............
Fort Worth ....... .
Houston............
San Antonio. . . .. . .
Shrevcport........
Other cities........
Indepondent stores:·
ArizoDa, . . . . ... .. . . . 256
+23
+10
+12
+16
Now Mexioo .... \...
166
+17
+12
Oklahoma. . . . . . . . . 560
Texna , . . . . . . . . ... .. 1,028
+28
+10
Wholesale trade:·
Machinery, cqpt. &:
Bupplies............
6
+47
- 5
+35
+15
+16
Automotive supplies.
6
+25
- 7
+'. '8'
Drugs (excl. liquors).
5
+15
+ 6
+7
-3
+44
+20
+ii
Eleotrioal supplies...
4
+24
Groceries... ...... .. ..
31
+11
+ 1
+24
Hardware . .. . ... ...
13
+28
+ 5
+26
-1
Surgical equipment..
4
+37
+ 6
_ 1
5
- 4
- 4
Tobaooo &: produots .
·Compiled hy UDited States Bureau or CeDsus. tCh.nge less than one-half of ODO per oont.

·:.::3

+~
.:..:.' t

INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1923-1926 avorage=100)
May
April
Maroh
1941
1041
1941
Sales (daily average): .
125 p
117
112
Without seasonal adJustment .•..... ,
118
118
125 p
With scnsonaladjustmcnt ....•..... ,
Stocks (end of month):
77
74
72 P
Without seasonal adJustmeDt .....•. ,
74
72
72 p
With sca.onal adjustment ..... ........ ,
p-Preliminary.

May
1040
105
105
69
68

CASH FARM INCOME FROM THE SALE OF PRINCIPAL FARM PRODUCTS
AND GOVERNMENT BENEFIT PAYMENTS
(ID thousands of dollars)
".---- March, 1041-----..
_____
&ceipts from:
Govern- r~----'Total receipt.
M 31
, - - - - - - - - . . , ment
March
Maroh
Jan. 1 to a '
Crops Livestock· payments
1941
1040
1041
1O408

Arizona . . . " . .
Louisiana ..... .
New Mexico .. ,
Oklahoma, ... .
Texas .. .... . . .

3,642
3,332
495
2,988
12,737

3,315
3,009
1,615
8,810
15,670

124
1,984
381
3,488
7,292

7,081
8,325
2,401
15,286
35,699

5,225
8,418
2,537
12,195
25,663

18,254
24,059
9,322
46,047
114,468

Tolnl. .. . . 23,104
32,419
13,209
08,882
54 ,038 213,050
·Includes receipts from the salo of livestock and livestock produots.
SOURCE: UOItcd States DopartmeDt of Agricultur•.

~N~5

9'217
40'320
09'812

~

185,242

. _____
LIVESTOCK RECEIPT8-(Numher)
r - - F o r t Worth--v---- San AntoDIO A ril '
May
May
April
May
M.y
1841
1041
1040
1941
1941
1040
83
Cattie" . .... " • . . " .. ". 47,419
44,669
37,153
22,952
16,795
IH41
Calves, ...... ,. ...... .. . 21,810
26046
18,844
16,706
21,074
12'265
Hogs .... .......... " " .. , 40,302
38:084
49,040
12,216
8,422
8'172
Sheep.,., ... , . , .,.,., ... 250,243
315,716
87,710
12,540
6,427
'
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars por hundredweight)
. _____
r - - F o r t Worth--v---- San ADtOOlO April
May
May
April
May
May
1041
1041
1040
1941
1041
1040
25
Beef sleors ....... ... .. .. . $10.75
$10,25
$11.00
$ 0.50
$ 0.00
$10."
Stooker steers ... , ....... . 11.00
9.50
1\ ,25
' 1'0','2'6'
' 1'0','0'0
'io'7'50
OO
Heifers and yearlings .. , . . 10 .85
1\,00
1\,35
Butoher oows .. . . , .... .. .
8,10
7,00
8,00
7,50
6.50
50
Calves .......•. .... ... .. 10.50
10 ,25
11.50
1\ .00
0,50
8 50
Hogs, .... . ..... ........ .
0,25
6.20
8.75
9.25
5 .55
8'25
Lambs ............. ..•.. 10.75
0.85
11.35
8.50
7.00
.

10:

l

MONTHLY BUSINESS REVIEW
December last year by $79,000,000 and that in the corresponding month of 1940 by $2 09,000,000.
After reaching a newall-time peak at $2 60,000,000 on May
16, member bank reserves maintained at the Federal Reserve
Bank of Dallas followed a noticeable downward trend during
the remainder of that month and in the early days of June.
Between June 4 and 15, member bank reserves rose by about
$14,000,000, and although daily average balances during the
first half of the month were $4,200,000 smaller than in May,
they were $2 5,000,000 greater than the average reserve balances in June las t year. Excess reserves of member banks in
this district, which had averaged about $95,000,000 during
the first half of May, declined considerably in the subsequent
thirty days to a level near the low recorded for any semilllonthly period thus far this year.
Federal Reserve notes of this bank in actual circulation
reached a new peak at $105,700,000 on June 4, and although
a moderate decline occurred in the following ten days Federal
Reserve note circulation on June 15 was $2,700,000 larger
than a month earlier and $24,500,000 greater than a year ago.
INDUSTRY
Construction contracts awarded in this district during May
alllounted to $29,639,000, which was considerably smaller
than the record attained in April, but substantially above the
tOtal for any other month this year. The large May total reflected heavy awards for residential, commercial and manufacturing building, and engineering projects, a substantial proportion of which was for direct or indirect use in the defense
program. The aggregate value of construction contracts let
during the initial five months of 1941 was about 75 per cent
greater than in the corresponding period of 1940, with all of
the principal types of construction work contributing to the
gain.
The expanded rate of building activity in this district has
resulted in a heavy and sustained demand for building materials. Production and shipments of cement at Texas mills
dUring the initial four months of 1941 were at an all-time
peak. Although shipments of lumber have fallen off somewhat
from the high level attained last fall as a result of heavy
Governmental purchases for the construction of army camps,
they have been maintained at the approximate level of lumber
production, which has been sustained at the advanced rate
established during the final half of 1940.
Significant developments affecting the petroleum industry
during May included substantial increases in production and
refinery operations, further advances in prices of crude oil and
refined products, and the appointment of a Petroleum Coordinator for National Defense. The Coordinator is charged with
the duty of fostering (1 ) economic development, production
and utilization of petroleum reserves, (2) the development of
new and the effective use of existing transportation and storage facilities, (3) the balancing of refining operations to
s~Cure the maximum yields of specific products with full cons~deration for requirements, and (4) economic drilling opera~Ions. The immediate problem facing the petroleum industry
IS a shortage in transportation facilities for the movement of
petroleum and its products from the Gulf Coast to the Atlantic
seaboard, rather than the industry's ability to produce the
necessary amounts of crude oil and refined products. The
d.eficiency in transportation facilities resulted from the diversion from intercoastal service of 50 ocean-going oil tankers,
Which represented about one-fifth of the industry's coastal
transport facilities. Although the tanker shortage may cause
a temporary accumulation of the above-ground stocks of
petroleum in the Southwest and a temporary deficiency in the
SUpply of petroleum and petroleum products on the Atlantic
Coast, means of relieving the situation are under consideration.
~uggested remedies include the construction of additional pipe
Ines from the Southwest to the Atlantic seaboard and a more

3

efficient use of eXlstmg facilities, including pipelines, railroads, river barges, and the remaining oil tankers operating
throughout the western hemisphere.
During May d ~ily average petroleum output in this district
and elsewhere in the United States expanded sharply, but
remained at slightly lower levels t han in the corresponding
month of 1940. Notwithstanding the increased production,
CONDITION OF T HE FEDERAL RESERVE BANK
(In thousands of dollnrs)
June 15,
June 15,
1941
1940
Total cash reserves ............-. ". ".............. ... 5345,495
$241,363
Disoounts for member banks ....... ...... .. ........
74
316
Other bills discounted.. ............. ............ ...
None
Nono
Industrial ndvances.. . ... .. .. .. ....... .... ........
276
473
United Stntes Government securities... .. .. . .. .. ...•
88,046
95,281
Total earning assets .. . . .. ... . . ........ ......... .
88,396
96,070
Member bonk reserve deposits. . ... ..... ......... ...
249,222
224,0 17
Federal Reserve notes in actual oiroulation. . . . ... . . .
103,763
79,244

May 15,
1941
$341,530
43
None
277
88,046
88.366
259,407
101,066

M

CONDITION STATISTICS OF MEMBER BANKS I N LEADING CITIES
(In thousands of dollars)
May 14,
June 11,
June 12,
1041
1040
104 1
$508,404
Total loan. and investments . . .. .. .. ...... .. .... .. .. 8602,209
$523, IR3
315,223
Total loans ...... .... . .. . ......... . ............. ,
314,466
266,608
Commeroial, industrial and agricultural loans. . . . . .
211 ,123
174,077
213.156
2,410
2,453
1,638
Open market paper...... .......... . .... ........
3,050
Loan. to brokers and dealers in seourities.... . .....
2,888
3,018
Other loans ror purohasing or carrying securities.. ..
1t,83 1
13,320
11.805
23,486
Real estato loans . . .. . . .. .. ... .. . . .. .. . . . . ... ...
23,116
22,089
458
Lonn. to banks..... .. .. ... . ... .. . . .. .. .. .. .. .. .
462
778
60,840
All other loans. . .. .. .. . . . .. .. . . . . .. .. .. .. .. .. ..
62,593
40,969
178,330
United State. Governme nt direct obligations. . . .... . .
186,008
151,510
43,401
Obligations rully guaranteed by United States Govt..
42,3Q3
47,120
61,540
Other securities . . .. . . .. .. . . . . . . . . . .. .. .. .. .. .. ....
59,342
57,846
162,298
Reserves with Federal Reservo Bank. ......... . .. ..
153,040
149,082
3 10,102
Balan ces with domestic banks.... . ..... . ...........
315,8 14
207,147
501,343
Domand deposits-adjustedo. ...... . ..............
550,644
401,372
136,~04
Time d~po.., ts ... . ....... ............. ............
135,853
137,212
United States Government deposits.............. . ..
35,574
31,398
28,783
Interbank doposits.. ... . . . . . . .. .. .. ..... ..........
288,800
250,340
29~~~~
Borrowings from Federal Reserve Bank. . . ........ . .
None
None
°Inoludes all demand deposits other than interbank and United States Government, les8
cash items reported as on band or in the process of oolleotioD.
DEBITS TO I NDIVIDUAL ACCOUNTS
(In tbo"sandR or dollnrs)
Potg.ehango
April
May
May
1041
1940
over year
1011
Abilene ..... .............. $ 13,060
$ 8,467
+54
12,608
Austin ......... .. ...... .
38,832
38,520
+ 1
37,947
Bea umont .. ........ .....
31,627
24,630
+28
30, 160
Corsienna ........... ...,.
3,694
3,213
+ 15
3,811
310,750
259,083
+23
311,555
Dallas .. .. .. ... ........... ...
EI Paso . .. .. .. . ..... . .. .. .
41,346
29,435
+40
aO, 165
Fort Worth...............
90,813
87,556
+ 14
02,441
31,010
25,890
+20
20,277
Galveston.. .. .. .... .. .. ..
Houston......... ... .. ....
307,096
250,270
+~3
274,955
Port Arthur ..............
11,173
0,506
+18
10,205
Roswell .. .... .......... ...
4,877
4,401
+ ll
5,217
San Antonio..............
98,608
80,411
+23
83,096
Shreveport........ . .....
54,041
48,412
+ 12
50,757
Texnrknnao.......... ....
8,922
7,164
+25
9,834
Tucson .. . ..... ...... ..... ,.
16,250
14,282
+14
15,600
T yler ...... ..".... ......
12,633
11,683
+ 8
12,468
Waco....................
16,074
13,507
+ 10
15,267
Wichita Falls.. . ...... ....
19,180
18,373
+ 4
18,080

Potg.ehange
over month
+ 3
+ 2
+ 5
- 3
+ 3
+ 6
+ 8
+ 6
+ 12
+ 9
- 7
+ 18
+ 6
- 0
+ 4
+ 1
+ 5
+ 6

$034,8 12
+21
$1,053,541
+ 7
Total. .. .... .. .. . $1,1 28,085
°Inoludes figures of two banks in Texarkana, Arkansa.q , located in th o Eighth Distriot.
GROSS DEMA ND AND TIME DEPOSITS OF MEMBER BANKS
(Average of daily figures-in thousand. of dollars)
Combined total
Reserve oity banks
Country banks
Gross
demand
May,
1030 .... ....... $1,182,997
May,
1040 .... . ...... 1,346,733
January, 104 1. .......... 1,495,852
February, 1041 . . ... . • . ... 1,533,864
March, 1041. .... .... . . 1,520,028
1941. .......... 1,541,825
tf,ril,
ay,
1041 .. . . . ...... 1,545,384

Timo
$23 1,070
234,567
239,504
241,401
244.006
243,042
245,367

Gro88
demand
S680,641
784,003
856,234
876, 181
870,948
80 1,686
001,377

SAVINGS DEPOSITS
May 31,1041

Beaumont . ...... . .... ........
Dallas ... . ..... ... ......
EI Paso . . ... ...... . ......
Fort Worth ...............
Galveston ............ . .. .
Houston ..... .............
Port Arthur . .... . ........
Snn Antonio ............ ,.
Shreveport ..... , ...•....
Wnoo .... . . . ....... .... .
Wichita Falls ... . . . .... ...
All others ... ....... .......
Total ." _ ......

Number of
reporting
banks
a
8
2
3
4
10
2

Number of
BUvings

Amount of:
S8v in(t8

3
3
3
60

deposi tors
10,350
01,998
20,011
34,064
18,887
78,140
5,974
23,303
25,420
8,067
7,124
62,640

deposits
$ 4,227,162
26,808,368
8,361,670
13,1 52,86 1
11 ,871,202
32,606,285
3,200,188
17,032,385
12, 137,880
4,492,077
3,515,436
30,409,550

115

386,977

$168,814,073

5

Gross
demand
$502,356
562,730
630,618
657,683
640,080
650,1 39
644,007

Time
$128,408
129,060
133, 109
134,206
136,080
135,990
135,607

Timo
$102,581
105.507
106,a95
107,285
10i,9 17
107,052
100,670

Percentage ohnn~o In
savings deposits rom
May 31,
1040
+ 6.4
+ 1.5
+ 3.0
+1.1
.7
3.0
1.0
+ .6
- 1.4
- 2.0
- 4. 7
.0

April 30,
1041
- 1.8
.2
- 1.4
.2
- 1.7
.1
- 1.5
.6
- 1.1
.6
- 1. 8
.0

.9

.7

:j:
-

+

-

MONTHLY BUSINESS REVIEW
4
above-ground stocks of crude oil in the nation as a whole
Cotton mill activity in the United States continued in May
declined by about 4,000,000 barrels in May, whereas, petroleum at the advanced rate established in April, and on a seasonally
inventories in the Eleventh District increased further by adjusted basis the volume of cotton consumed recorded a neW'
nearly 2,000,000 barrels, reflecting in part the curtailment high for the third consecutive month. During May, cotton
in shipments of crude oil from this area to the Atlantic sea- consumption amounted to 919,000 bales, which closely ~p­
board. In recognition of the tightening transportation situa- proxima ted the record attained in April and compare~ W'lt~
tion, the Texas Railroad Commission lowered the June crude 642,000 bales utilized in May last year. Forward buymg 0
oil production allowable for Texas by nearly 16,000 barrels cotton fabrics continued brisk due apparently to the str?n~
daily in an effort to bring about a better alignment between consumer demand and advancing prices. On June 7 the UllIt~
production and consumption. The utilization of crude oil by States Bureau of Labor Statistics' index of prices of all textile
refiners in this district, as well as in the United States, rose products, including cotton, wool, silk and rayon, was at ~he
to a new peak in May, the rate exceeding that of a year ago highest level recorded since early in 193 o. The Office of price
by about 5 per cent. Inventories of gasoline and industrial Administration and Civilian Supply placed a ceiling on combed
fuel oil continued to decline as a result of the heavy domestic cotton yarn prices on May 26 at a level somewhat below rec~nt
demand for these products.
quotations, and following this action the commercial buyuhg
The rate of drilling activity in the United States declined of cotton yarns showed some abatement. Mill margins, or t e
moderately from April to May, but operations in the Eleventh difference between the price of a pound of cotton and its cloth
District rose 4 per cent to the highest level in nearly a year. equivalent, continued to advance in May, establishing a neW'
In comparison with May last year the number of wells com- high for the 16-year period for which data are available .. Inci
pleted in both this district and the nation averaged about 9 ventories of raw cotton at consuming establishments decline
per cent fewer.
slightly in May, but remained at a much higher level than a
Prices of crude oil and refined products continued to advance year ago.
in May. Quotations for crude petroleum were increased from
Spot cotton prices showed a further pronounced incre~se
7 to 10 cents per barrel throughout the Mid-Continent, Illi- between the middle of May and the middle of June. The price
nois, Michigan, and Rocky Mountain regions, and in Pennsyl- of cotton, middling, 15/16-inch staple, at ten spot market;
vania an increase of 15 cents per barrel was posted. Crude oil averaged 13.75 cents per pound on June 15, as agai~st. 12'~f
prices now average from 10 to 15 per cent higher than at the cents a month earlier and 10.06 cents at the begmlllng
beginning of 1941. Prices of virtually all the principal refined 1941. The recent enactment of legislation providing for
products, including gasoline, kerosene, fuel oils and lubricants, ernment loans on cotton, corn, wheat, rice and tobacco at ~
shared in the rising markets during May; in the final week of per cent of parity prices was an important factor in t e
the month the advance in prices of petroleum products was advance of cotton prices.
11
especially pronounced, averaging about 5 per cent.
Exports of cotton from the United States continued sm~
in May, totaling only 71,500 bales as against 226,500 bales !n
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of doll.rs)
May last year. During the first ten months of the curren~
May
M.y
April
J.nuary 1 to May 81
1941
1940
1941
season, for~ign shipments of American co~ton av~raged 1~;
1941
1940
Eloventh Distriot.-tot.l.. .
29,639
15,347
45,234 r
140,996
81,898
than one-sixth the total in the correspondmg period of t
Rosidontial. . . . . . .. . . . .
9,522
6,094
12,240 r
45,691
30,483
All other...... ........
20,117
9,253
32,994r
preceding season.
95,805
50,910

GO";

United Stntes·-tot.l.. .. .
548,700
828,914
406,675
Residenti.l. . . .. .. . .. ..
201,274
145,912
106,462
All other. . . .... . . . .. ..
847,426
183,002
240,213
'37 st.tes east of the Rooky Mountnins.
r-Rovisod.
SOURCE: F. W. Dodge Corporation.

2,010,856
743,860
1,267,496

1,298,361
555,298
743,063

BmLDING PERMITS
Peroentage oh.ngo
Pereent.ge
v.luation from
J.n. 1 to M.y 31, 1941 ohnn~e
"\ valuat10D
V.lu.tion v M• y,1940 Apr.,1941 v No.
V.luation
from 1940
172,850
+848
+141
258 S 080,808
+172
318,948
- 18
+ 8
856
1,160,880
463,048
- 54
- 7
925
2,562,845
- 8
130,087
- 8
- 40
627
934,173
+ 56
1,971,807
+768
-+ 3t
1,164
7,537,613
+ 96
1,528,690
+ 24
4
8,813
5,759,442
+ 4
186,431
- 25
- 80
666
1,168,961
4
525,972
+ 18
+ 9
1,402
2,432,753
13
1,873,689
+.
+449
1,059
3,014,629
+224
1,536,235
4
+ 11
2,300
8,624,944
- 17
156,205
+ 47
+ 65
536
510,305
- 1
421,189
- 20
6
2,624
2,809,090
+ 4
342,369
- 36
+ 43
603
1,476,283
- 30
202,010
+ 68
- 85
343
2,102,561
+259
157,021
+148
8
288
670,570
+ 38

May, 1941
r

Ahilono ... .." ..
Am.rillo ........
Austin ........ ...
Bo.umont ....... .
Corpus Ohri,ti. .
D.llas ..... . .. .
EI P.so .......... .
Fort Worth ..... .
G.lveston ........
Houston ........ .
Port Arthur .. . .
San Antonio ... .
Shroveport .. . . .
Waco ......... .
Wiohita Falls .. .

No.
47
75
162
124
218
847
150
332
275
511
134
556
118
55
71

Totnl. .. '. 8,675 9,992,547
'Inorease ovor 1,000 per oent.

t

t

+ 47
+ 11
17,024 541,407,863
+ 14
fCh.ngo less th.n onc-h.lf of ono per oont

STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
- - - T o x . s - - - v - - U n i t c d St.tcs--..,.
August 1 to May 31
August 1 to M.y 31
This season
L.st season
This season
Last senson
Cottonsoed received nt mills
1,077,161
908,852
(tons) ... .. ............... .
4,428,558
4,028,787
1,057,861
941,683
Cottonseed orushed (tons) ... . .
4,198,791
4,052,685
Cottonseed on hand May 31
35,047
17,287
268,609
(tons) ... . ...... .. ... . ... ..
96,728
Produotion of produots:
275,635,095 1,356,196,561 1,291,722,061
Cnldo oil (pounds) .....•.... 324,737,253
495,077
453,765
1,865,305
C.ko and meal (tons) .... . . .
1,836,486
268,954
242,811
1,056,312
Hulls (tons) ..... ........ ..
1,020,163
262,796
220,727
1,146,951
Linters (ruDning bales) . . ... .
1,046,190
Stooks on hand May 31:
12,645,039
34,940,764
Crudo oil (pounds) ..... ... . 12,082,370
35,692,315
49,662
31,980
255,028
Cake and meal (tons) ...... .
129,173
76,717
11,549
195,892
Hulls (tons) . .. .......... ..
46,048
52,253
66,608
225,742
Linters (running bales) ..... .
245,034
SOURCE: Buroau of Cen8U~

CRUDE OIL PRODUCTION-(Bnrrols)
. dailY
May, 1041
Inoroase or doore,,!,e lie III
.verago productIOn r~
Dailyavg.
Total
M.y, 1940
April, 19~1
produotion
produotion
_ 3,423
314
North Texas .. .............. .
5,510,850
177,760
_
6,138
+22,189
West Tex .................... .
8,718,800
281,252
- 17,588
+16,293
Ea,! Tox.s .. ... ............ . 13,800,900
445,190
-31,446
+11,865
South Telas ..... . ........ .. .
6,396,900
206,352
TOlas Coastnl.. ..... . . . ...... .
8,484,800
+30,269
~
272,090
+70,191
-28,326
Total Texas .....•. 42,862,250
1,382,653
+ 2,769
New Moxieo ......... . . . . .... .
+ 4,772
3,459,950
111,611
+ 1,969
North Louiai.n ... ........... .
+ 2,620
2,251,900
72,642
Tot.1 Distriot ... " . 48,574,100
1,566,906
-20,984
SOUROE: Estim.ted from Amorionn Potroloum Institute weekly reports.
CRUDE OIL PRICES-(40 gravity Bnd Rhove)
May 31, 1941
M.y 31,1940
North Bnd West Central Tex.s ... . . . .. .
$1.18
$1 .03
E •• t Centr.1 Toxas...................
1.27
1.12
Tex.s Gulf Coast.. .. . . . . . . . . . . . . . . .. .
1 .48
1. 28
West TexBs-New Moxieo.. .. .........
1.12
.05
North Louisi.nn .............. .. ......
1.20
1.05
1. 25
1.10
Enst Texas (flat price) . .. .. .. .. .. .. .. .
SOURCE: The Oil Weekly, Houston, Texas.

-

+74,920

April 80, 1941
$1.08
1.17
1.38
1.02

1.10

1.15

RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT THE PORTS OF
HOUSTON AND GALVESTON-(Balcs)
M 31
Y ason
May
May
April
August 1 to
n
1941
1940
1941
This sc.so L.s ~ 7~1
Reoeipts...... .. .. .. .. .. .
158,078
92,585
111,064
1,948,2~g N~0:i11
Exports.................
93,177
136,656
79,267
963,5
' .....
Stooks, ond of month.... . 1,872,581
1,327,414
1,882,269

t

CONSUMPTION, STOCKS, AND EXPORTS OF (;OTTON-(Balcs)M 31
Mny
May
April
~ugust 1 toLast~.,on
Consumption at:
1941
1940
1941
ThiS season
6059
Toxas mills............
17,813
12,309
23,491
192 ,3 84
6 ~~5:685
4 140
United Stntes mill.. ....
918,902
641,636
920,143
7,91,
'
U.S.• tooks-ond of month:
....
In oonsuming utah·mts. 1,927,939
1,314,792
1,938,507
.. •. .
Publiestg. &: oompresses. 11,358,417 10,091,517 12,374,839
5.'9'21,481
Exports from U.
71,539
226,469
74,000
975,540
ret
mc
*1 n t hc. Interest
.
'
0fnntlon3
l :md hemisphere defense, the Departme nt of Com
f des una"
h.s dwded to ce.se publishing det.iled st.tlstics concerning the country 0
tlon of cotton exports.

S.· .... ..

MONTHLY BUSINESS REVIEW
JULY 1, 1941

NATIONAL SUMMARY OF BUSINESS CONDITIONS

-..
160

(Oompiled by the Board of Governors of the Federal Reserve System)
INDUSTRIAL PRODUCTION
nlTIoI,INOD

Pawn

TOT; V

\

/

100

..-~,
URABLE

l~MANUFACTURE$

to

I 40

/

I 20
I 00

/

rJi'"

60

40

"'"
I 60

•1

140
120

eo

a toni.

80

NONDURABLE

MA~~'!.~E..s.. 7

ifT'J;--t....!----

60
40

---/~NEAALS

20

I

I
193'

1936

1937

1938

1939

o
1940

194 1

F~deral Reserve index of physical volume of produc·

tlon, adjusted for seasonal variation. 1935·39 average
::::: 100. Subgroups shown arc expressed in terms of
Points in the total index. By months, January, 1935
to May, 1941.
WHOLESALE PRICES

:10""

"LIIClN"r

110

100

100

90

90

eo

90

to

70

eo

60

eo

.0
19~

1936

1937

1938

1939

1940

1941

=

~ureau of Labor Statistics' indexes, 1926
100.
Other" includes commodities other than farm prod·
Ucts and foods. By weeks, January 5, 1935 to week
ending June 14, 1941.
DEPARTMENT STORE SALES AND STOCKS
tot.

Ch ,

H'

120
110

110

r

100

/,~ .ALES
60

." V

/

v--"'\

IV

/
IV'

1---

--'-/T-./'

100

]V

90

80
8lllCKS

60

I

.'V"

r

70
60

'0

~o
193'

1936

1937

1938

1939

1940

1941

l'c~cral Reserve index of value of sales and stocks,
adjusted for seasonal variation, 1923·25 average
100. By months, January, 1935 to May, 1941.

=

MONEY RATES IN NEW YORK CITY

After a slight decline in April industrial activity increased sharply in May and the first half of
June. Wholesale commodity prices showed a f urther considerable advance and retail prices also increased •
Distribution of commodities to consumers was maintained in large volume.
PRODUCTION
Volume of industrial output increased sharply in May, following a decline in April, and the
Board's seasonally adjusted index rose to 149 per cent of the 1935-1939 average, as compared with
140 in April and 143 in March. The decline in April had reflected mainly reduced output of bituminous
coal and automobiles occasioned by shutdowns accompanying industrial disputes. These were settled
during the month and in May and the first half of June output in these industries rose to the high
levels prevailing earlier.
In a nwnber of other lines activity increased steadily throughout the spring months, particularly
in the machinery, aircraft, and shipbuilding industries. Steel production was maintained at 99 per
cent of capacity, except for a short period during late April and early May when output was reduced
somewhat owing to a shortage of coal. Output of nonferrous metals also continued near cap:u:ity;
deliveries of foreign copper in May increased to 49,000 tons, amounting to about one-third of total
deliveries to domestic consumers. Toward the end of the month, as it became apparent that combined
military and civilian need for these metals would soon greatly exceed available supplies, a General
Preference Order covering all iron and steel products was issued by the Priorities Division of the Office
of Production Management and in June mandatory priority controls were established for copper and zinc.
Textile production rose further in May, reflecting increased activity at cotton, wool, and rayon
mills. A continued rise in output of manufactured food products was likewise reported and activity in
the chemical and shoe industries was maintained at earlier high levels, although usually there is a considerable decline at this season. Petrolewn production increased, and output of anthracite also advanced
following some curtailment in April. Iron ore shipments amounted to 11,000,000 tons in May, a new
record level and near the shipping capacity of the present Lake fleet.
Value of construction contract awards rose sharply in May, reflecting increases in both public and
private construction, according to F. W. Dodge reports. Awards for private residential and nonre..idential building increased more than seasonally, and contracts for defense projects continued in large
volume.
DISTRmUTION
Distribution of commodities to consumers was sustained at a high level in May. Department store
sales showed a further rise, while sales at variety stores declined by slightly more than the usual seasonal amount. Retail sales of new automobiles continued at the high April level and sales of used cars
rose further.
Freight-car loadings increased sharply in May, reflecting a marked rise in coal shipments and a
further expansion in loadings of rniscellaneow freight. In the first half of June total loadings were
maintained at the advanced level of other recent weeks.
COMMODITY PRICES
Wholesale prices of a number of agricultural and industrial commodities showed further increases
from the middle of May to the middle of June and the general index of the Bureau of Labor Statistics
advanced two points to 87 per cent of the 1926 average. Federal action to limit price increases was
extended to some consumer goods, principally new automobiles, hides, and certain cotton yarns. In
retail markets prices of most groups of commodities have advanced, reflecting in part increases in
wholesale prices earlier this year.
BANK CREDIT
Commercial loans at reporting banks in 101 cities continued to rise during the four weeks ending
June 11. Bank holdings of United States Government securities increased further, chiefly through the
purchase of bills by New York City banks and of bonds by banks in other leading cities. As a result
of the expansion in loans and investments bank deposits continued to increase.
UNITED STATES GOVERNMENT SECURITY PRICES

193&

1936

1937

1936

1939

1940

1941

\'(;cekly averages of daily yields of 3·to·5·year tax
~~elllPt Treasury notes, Treasury bonds callable after
l' years, and average discount on new issues of
re.sury bills offered within week. For weeks ending
January 5, 1935 to June 14, 1941.

Following a rise in the latter part of May Treasury bond prices declined slightly in the first half
of June. On June 14 the 1960-65 bonds were % of a point below the all-time peak in prices of December
10. Yields on both taxable and tax-exempt 3- to 5-year notes declined slightly from the middle of May
to the middle of June.