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MONTHLY "BUSINESS REVIEW
of
the
Volume 30
RESERVE
FEDERAL
Dallas, Texas,
BANK of Dallas
July 1,1945
Number . "
=
DISTRICT SUMMARY
Light to heavy rains over wide areas in the Eleventh District
aro~d mid-June had varying effects upon crop developments.
While crops generally were benefited by the rains, there were
some areas where the excessive moisture caused damage, and
m~ch of the drought-stricken area in the western part of the dist Ct received little or no relief. Row crops generally are later
~ ~,usual and the seeding of crops in parts of the drought area
IS h 109 delayed beyond the most favorable planting season. The
~ eat crol? has deteriorated sharply and the June 1 estimate
o production in Texas is less than one-half of the initial estimate
on
, ApI!'1 1 and of last year's harvest. Department store sales
tcreased more than seasonally in May and were 9 per cent
si[ghr th~n in May last year. Crude petroleum production rose
g tl~ m May, reaching a new peak at a level about 8 per
cent higher than a year ago. Drilling activity was maintained
it about the same level as in other recent months. The deposits,
.oons, and investments of reporting member banks showed large
lUcre~ses betweep. May 9 and April 13, reflecting chiefly factors
associated with the Seventh War Loan Drive.
h
BUSINESS
d ~?~sumer buying at department stores in this district, after
ec 1010g sharply in April, increased by more than the usual
~easonal amount in May, and was about 9 per cent highef than
lUI May last year. During the first quarter of the current year,
sa e.s ~an about 19 per cent ahead of those in the corresponding
ie~o last year. The concensus of department stores appears
.0 e that bUying during the summer months will be maintained
~ 1 rge volume, and that 'total sales should equal or exceed those
~ t ~same period a year earlier. Factors that may have a retardmg \ ect, upon sales are the acute shortages of many types of
an~cs and~se, that. are in s~rong demand, the, greater ~aution
It
h electlVlty bemg exerCised by some customers, due m part
, oJ. e expectation of the release of better quality merchandise
an, ~n part to the uncertainty as to continuance of jobs at the
~X!stl~g wage rates, and the possibility that some unemployment'
ay evelop as a result of the cutbacks in war production.
h
M Inventories of department stores increased 4 per' cent during
t aY ~o a level 15 per cent higher than a year earlier. While
b~~l lU~en~ories have been maintained at a high level, they are
whi Y dlstnbut~d among departments. Types of merchandise
g ~h are espeCially difficult to db-tain include all kinds of piece
woo \ h~usehold linens, men's clothing, certain kinds of men's
ar
gt , trut goods, women's lingerie, women's hosiery, china, and
r a~sware. In the case of most items of women's and misses'
1>:a r:-tlo-wear and small wares, sales and inventories show subantla increases over those a year ago.
'
f
'
' t h'IS d'IstCict
, .mcrease d
ab Sales of re portmg
urruture
stores m
i OUt 10 per cent from April to May and were 1 per cent
il~~:rchhan a year ago. Inventories at the end of May showed
ange from those a month earlier or a year ago.
AGRICULTURE ,
u Weather conditions have continued to have varied effects
h
frops in the Eleventh District during May and the first
o~ 0 June. In the eastern half of Texas and in north Louisiana,
ge n weather during much of May enabled farmers to make
ro nerally good progress with the planting and cultivation of
w crops, but in some localities intermittent rains caused con-
PUn
siderable damage, retarded cultivation, and necessitated extensive replanting. Heavy rains over most of the eastern half of
the district around mid-June were generally beneficial to row
crops but retarded field operations. In much of the western
half of the district, the continued drought, the persistence of
hot winds, and considerable insect activity had an adverse effect
:upon crops and livestock. Livestock ranges have deteriorated
'o ver much of that area with stock water becoming scarce in
some sections. Although livestock have been maintained in generally good condition, supplemental feeding is increasing and
some stock are being moved to pastures in Oklahoma and
Kansas. The recent rains in some sections have only partially
'relieved the drought. Fruits and commercial vegetables, however, have progressed rapidly and movements are in record
volume.
The June 1 estimate of wheat production in Texas was placed
at 36,200,000 bushels, which represents a decline of aboutlo>
20,000,000 bushels from the May 1 estimate and 39,000,000
bushels from the initial estimate on April 1. According to the
Department of Agriculture, the rapid deterioriation was caused
by excessive moisture in north Texas and lack of moisture
in the heavy producing areas of the High Plains. Rains in the
Panhandle area during the middle of June, which were very
beneficial to ranges and row crops, retarded the harvesting of
wheat in that section and, may cause a further decline in total
wheat production. Another adverse factor in the wheat situation is the serious shortage of cars for moving grain to terminal
elevato,rs and since harvesting is well under way, some grain is
being dumped in the fields or alongside loading docks, subjecting the grain to damage from exposure to the elements.
The production of oats in Texas as of June 1 was indicated
at 43,912,000 bushels, representing the largest crop since 1940
and about 10,obO,000 bushels above the 10-year average production. The barley crop, as a result of adverse weather conditions, deteriorated rapidly and the estimated production,
amounting to 3,537,000 bushels on June 1, is less than onethird of the relatively large crop of 1944, but slightly larger
than the 10-year average.
The corn crop, which was planted under adverse weather
conditions and is much later than usual, has made poor to only
fair progress. In some areas, insect damage has been heavy and
stands are poor in other areas. Corn deteriorated sharply during
the period of dry weather in May. While the recent rains have
been beneficial, the lateness of the crop subjects it to damage
from adverse weather later in the season.
Planting and cultivation of cotton made good progress during
May and the first half of June in north, east and central Texas
and is nearing the maturity stage in southern areas. On the other
hand, droughty conditions in the heavy cotton producing areas
in west Texas have retarded the seeding of cotton and the crop
will be much later than usual.
Preliminary figures indicate that carlot movements of vegetables and citrus fruits from the Rio Grande Valley during the
season just ended exceeded all previous records. Conditions during May were exceptionally favorable to the tomato crop in
all areas and harvest was well under way by mid-June.
In Texas, the indicated peach crop of 2,394,000 bushels ex.teeds that of last year by approximately 900,000 bushels and
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
is 53 per cent above the 10-year average. Pear production,
estimated at approximately one-half million bushels, is at about
the same level as in 1944 and is only slightly above the 10-year
average. The new citrus crop prospects continued favorable
with fruit reported well sized and trees in generally ~ood condition, but the water supply is declining rapidly iii some"sec·tions.
Egg production in Texas during May, with an estimated total
of 413,000,000, remained at a relatively high level and even
though total production was 6 per cent below that of May,
1944, it was 45 per cent above the 10-year average of 285,000,~OO. The number of laying hens on farms, estimated by the
pepartment of Agriculture at 24,678,000, is slightly under the
p.u mber reported for the same month last year but is considerably above the average. The number of eggs laid per 100 hens,
reported at 1,674, was the highest of record for that month.
Range feeds and pasture grasses deteriorated rapidly during
May and the drought assumed serious proportion in many counties in the western half of Texas. Droughty conditions, together
with short feed supplies, also prevailed in much of the eastern
and southern parts of New Mexico and local areas in southern
Arizona. The condition of Texas ranges on June 1, at 81 per
cent, indicated a decline of 7 points during May and was 5 points
below the 20-year average. The condition of cattle declined
2 points during the month, but despite unfavorable conditions
stock have remained in from fair to good flesh with large calf
crops reported from practically all sections. The condition of
sheep declined 5 points during the month and on June 1 was
2 points below the 20-year average for that date. Movements
of cattle and sheep into Fort Worth and San Antonio markets
during May were slightly larger than the relatively high seasonal movement in May a year earlier and were more than
double the receipts in April this year.
Mid-May prices received by Texas farmers, as reported by
the Department of Agriculture, showed very little change from
those reported a month earlier. Moderate increases were reported
for such items as corn, sweet potatoes, peanuts, chickens, and
citrus fruits. On the other hand, seasonal declines were indicated
for oats, barley, lambs, eggs, milk and all hay, but prices for
wheat, grain sorghums, rice, cottonseed, cowpeas, eggs and butter and most meat animals remained unchanged.
FINANCE
The gross demand and time deposits of member banks in this
district increased substantially in May and during the last half
of the month averaged $4,507,000,000, which is a new high
level and approximately $900,000,000 higher than in the corresponding period last year. Coincident with the expansion in
deposits, member banks increased their reserve balances with the
Federal Reserve Bank and their balances with correspondents.
During the first half of June, reserve balances averaged $676,000,000, as compared with an average of $656,000,000 in May
and $632,000,000 in April. In June last year, the average
'
amounted to only $541,000,000.
During May this year, individuals withdrew large sums from
their deposit accounts to pay for securities purchased during
the Seventh War Loan Drive, and as the payments were made,
-the funds were credited to the reserve-exempt war loan accounts
of the Treasury. In the same period, the member banks also increased their balances with correspondents. As these developments had the effect of holding down the expansion in deposits
on which reserves are required, the required reserve of member
banks increased by a smaller amount than reserve balances. In
consequence, excess reserves of member banks increased considerably and during the last half of May averaged approximately $128,000,000, the highest level reached since the period immediately following the close of the Sixth War Loan Drive.
CASH FAR~{ INCOME
(Thousands of dollars)
~ M.rch 1945
Tot.nlrccoipts- '
~Reocipts from- March
March
J.n. 1 to M.rch 31
Crops Livestook·
1945
1944
1945
1944
Ari •.o~. .
10,528
3,477
14,000
16,043
85,300
37,223
LoUISI.""..... .. . ........
6,830
5,987
12,817 ' 10,861
42,199
40'm
New Mexico .. .. ... ......
2.144
3,417
6,501
4.180
17.730
13,
Oklahom. .. ........ .. ... 10,597
18,984
29,581
27,510
91,348
76,040
TeXB8.. .......... ... .. .. 84,860
48,656
78,516
68,100
234,995
227,27 1
.. .... .. .... .. ..
TotaL........ .. 64,954
75,521
140,475
120,703
421,606
"Includes rccoipts from tho salo of livestock .nd I,,'estook products.
SOURCE: United States Department of Agriculturo.
394.91s
LIVESTOCK RECEIPTS-(N umber)
~FortWorth----
C.~t1e . ........ .. ........
Calves .• . .. . .... , ., . . . . .
Hogs.... . .. .. .. . ........
Shoop ...................
M.y
1945
127,625
26,379
45,312
658,763
M.y
1944
102,098
25,499
117,941
605,432
April
1945
127,483
18,068
42,044
179,242
COMPARATIVE TOP LIVESTOCK
(Dollars psr hundred woight)
- - - F o r t Worth
May
M.y
April
1945
1944
1946
Becf.teers .. .... ......... $16.25
$16 .25
$16 .59
Stock~r .teers.. . ...... ... 14 .00
13 .00
14 .50
Heifers and yearlings.... .. 16 .25
16.00
16 .50
Butcher COWs . ........... 13 .00
12 .50
18.00
Calvcs..................
14 .60
14 .50
15 .00
Hoga...................
14.55
13 .65
14 .55
Lambl....... . ..... ..... 15 .00
14.50
15 .75
Mny
1935
83,757
25,095
5,382
131,529
S.n Antonio---7"'1
Mny
Aprl
1944
1046
31,9a9
26,328
26,842
19,6&0
16,468
6,2
52,343
43,364
PRICES
May
1945
$15 .50
'1'5' .'5'0'
12 .50
14 .50
14 .55
14 .50
Ban Antonio ~l
May
Aprl
1944
1946
$13 .60
$15 .76
. ... ..
. i5:tiO
14 .60
60
11.40
12 ' 60
14.60
14 '65
13 .55
14 '60
13.25
14 .
COTTONSEED AND COTTONSEED PRODUCTS
- - - TeXBS
United Statos---August 1 to May 31
August I ~o M.y 31
This SBR80n
Last 8BR80n
This S0880n
Lnst season
Cottonseed receivod .t mills
(ta~.) .. . ..... .. ...... .. .. .
935,776
909,975
4,287,726
3,915,306
Cottonseed t\l'usbod (ton.) . . .. .
879,658
927,410
4,001,520
3,826,293
Cottonseed on hand M.y 31
(tons) ..... ... ........ .. .. .
87,014
27,234
177,789
397,062
Production of products:
Crude oil (tbousand Ibs.) . . . .
269,687
279,655
1,195,471
1,241,671
Cake .nd menl (tons) .. .... .
416,031
440,741
1,775,116
1,837,396
Hulls (tons) ... .... . ..... ..
205,165
219,190
927,423
894,911
Linwra (running baIt'll) . . ... .
266,294
277,256
1,142,217
1,171,355
Stocks on h.nd May 31:
Crude oil (thousand lbe.) . . . .
6,316
7,534
16,583
20,526
Cako and menl (tons) . . . . . . .
24,830
18,159
49,494
98,989
Hulltt (ton.) . . . .. . .. .......
21,459
26,269
8,086
74,045
Lintera (running balcs) . .....
10,787
51,586
170,820
55,524
SOUROE: United Slates Bureau of Can.us.
DOMESTIC CONSUMPTION AND STOCKS OF COTTON- (Bales)
May
May
April
August 1 to M.y 31
1946
1944
1945
This 8eason Last senso'
Consumption .t:
ToXB8 mills . . ... . ....... .
16,642
17,270
15,282
158,460
172,1~
Unitod States milltt .•.....
830,568
832,812
769,678
8,116,079
8,414,1
U.S. stooks-4lnd of month:
'
In consuming cshbm'ts... 2,141,198
2,111,207
'
Public slg. cit: compresses . . 10,132,723
9,674,689
..
..
The circulation of Federal Reserve notes of this bank Coli'
tinued to expand moderately but at a much slower rate thall '
year earlier. On June 15, total circulation amounted to $57~1'
000,000, which was $8,000,000 higher than a month earhel
and about $112,000,000 higher than on the corresponding dRc;
last year. On May 29, the Secretary of the Treasury requested afinancial institutions in the United States to report to the Fed'
eral Reserve banks currency transactions where the amountS rJ
denominations of the currency involved exceed those coli"
mensurate with the legitimate and customary conduct of chi
'business, industry, or profession of the person or industry coli'
cerned. The reporting requirement was made because the air
normal use of large denomination currency in business trans aC'
tions has become one of the principal devices for income ~~
evasions and concealments, and the reports are expected to as SI!
the Treasury in counteracting the use of abnormal currellC)
transactions for those purposes. The Treasury pointed out Chll
legitimate operators need not be concerned over the mat tel
since it will affect only those who are using such techniques (I
defraud the Government at a time when millions of honest c~~'
payers are faithfully contributing their share to war finance,
The changes in the weekly statement of reporting mernbD
banks in this district between May 9 and June 13 reflected to '
large extent factors associated with the Seventh War Loan Dri~~
During this period, the deposits of reporting banks increased b)
MONTHLY BUSINESS REVIEW
approximately $167,000,000, reaching a new high level of $2,.336,000,000 on June 13. The increase in deposits represe~ted 1ll
considerable part the transfer of funds from other sections of
the country in anticipation of entering subscriptions for Government securities offered during the drive. More than one-half
of the total increase in deposits occurred in United ~tates Government deposits, consisting largely of war l~an deposit accounts,
but there were also substantial increases III adjusted-demand
and time deposits and in interbank deposits. The ban~s utilized
the increase in deposits by shifting $29,000,000 to their reserves
with the Federal Reserve bank and $57,000,000 to balan~es
with correspondents, and by increasing their loans and. investments by approximately $80,000,000. The increase m loans
Occurred principally in loans to other's than brokers and deale~s
secured by U. S. Government securites, reflecting advances 1ll
c.onnection with securities purchased during ~he ~rive, a~though
Sizable increases also occurred in commercial, mdustnal, and
agricultural loans and in "all other" loans. Some of these funds
may have been used to purchase Government securities. The investments of these banks increased by approximately $44,000,000 during the five-week period and on June 13 stood at a new
high level of $1,310,000,000.
INDUSTRY
Widespread readjustments in the war prod.uction prog:am. in
this district are taking place in order to bnng output mime
with the requirements necessitated by the change form a twofront to a one-front war. Although contracts in substantial
amounts continued to be awarded in this district, cutbacks have
been heavy in recent weeks and are expected to become more
widespread. The largest cutbacks thus far have been in connection with aircraft production, !building of cargo ships, an~' output of certain types of munitions not suitable for use 1ll the
Pacific Theatre.
8
from the current market. This disappearance is apparently due
to several factors, including the reluctance of employees to accept placement at lower wages in other fields, the finding of
jobs in non-essential industries, the return of employees to former homes, or transfer to areas where there are better opportunities for employment in war industries. Special efforts are being
made to recruit workers for the textile and lumber industries
where the labor shortage persists.
Following the letting of several large contracts for construction of war projects during earlier months of this year, the value
of construction contracts awarded in May declined approximately 62 per cent from the heavy awards in the previous month,
but the aggregate of $11,752,000 was 18 per cent larger than
awards in May last year. A significant development was the substantial increase in awards for residential building, a large share
of which represented the construction of privately-financed
one-family dwellings. The War Production Board recently released controls covering maintenance and repair work, specifying an exemption of $5,000 to be spent in anyone year without
War Production Board approval. The construction industry in
general appears to be optimistic about its ability to absorb a
large number of employees, as many construction companies
have a large backlog of work that can be initiated as soon as
materials anclJ labor become available. Although production of
lumber has apparently increased somewhat in recent months, it
is smaller than a year earlier and the demand continues to greatly
exceed the supply. Production of 566,000 barrels of Portland
cement at Texas mills during April continued at about the same
level as the previous month with shipments equal to production,
leaving stocks at the end of the month of about 1,000,000 barrels. Supplies of construction materials other than lumber are
expected to increase substantially during the remainder of the
year.
Production of crude petroleum in the Eleventh District dur. In view of the changes in war production and the mo~ifica ing May again reached an all-time high with a daily average rate
tlon or revocation of many restrictions upon the productIOn of of 2,351,000 barrels, representing an increase of 8 per cent over
c!vilian goods, the reconversion program in this district is get- that in Maya year earlier. Production outside this district also
tmg under way and will be accelerated as soon as labor and ma- increased from April to May, reflecting the larger output in the
terials become available in larger quantities. Although producers West Coast fields. Although a temporary decrease in the overhave been given permission to enter unrated orders for a number all military demand for petroleum products will occur while
of raw materials, the limited supplies available are expected to preparations are being made for accelerated activity in the Parestrict for some time the volume of civilian goods that can be cific, the Petroleum Administrator for War has indicated that
produced. One important bottleneck in the reconversion pro- there will be no let up in the production of crude oil. The July
gram in the United States is the problem of finding storage certification for Texas 'calls for a continued record production.
space for Government-owned machines, machine tools, and in- Drilling activity in this district, as measured by the number of
ventories of finished parts. Government procurement agencies well completions, continued at about the same level as in other
have estimated that the War Department alone will require ap- recent months with a daily average of 21 wells.
proximately 45,000,000 square feet of storage space, of which
Th~ situation in connection with cotton textiles for both
nearly one-half must be under shelter. The Reconstruction Finance Corporation has estimated that the rate at which items military and civilian use has become more critic:lI with an estiwill move into storage will be accelerated rapidly during the next mated current deficiency of approximately 8,000,000 yards of
several weeks and that storage centers are expected to abso·r b uniform goods alone. The War Production Board recently called
about 20,000 tons of equipment daily. The replacing of private- in representatives of the textile industry and members of the
ly-owned equipment can be expedited as soon as Government- Army, Navy, War La!bor Board, Office of Economic Stabilizaowned equipment is cleared out of plants and manpower be- tion and War Manpower Commission in an effort to formulate
comes more readily available. The problem of equipment re- plans to greatly stimulate output of cotton textiles and some
moval in this district is expected to be relatively small in com- relief may be expected before the end of the year. Mill consumpparison with that in some of the heavily industrialized sections. tion of cotton at United States textile mills during May totaled
831,000 bales, representing a seasonal increase of 8 per cent over
The cutbacks in war production have created temporary un- the consumption in the previous month but was fractionally
employment in some localities but the situation is not expected under that in Maya year earlier. Cotton consumption fo·r the
to become serious in the immediate future. Acco.r ding to avail- first 10 months of the 1944-1945 season totaled 8,117,000 bales,
able reports, the demand for skilled employees continues to ex- as compared with 8,400,000 bales for the same period last seace~d the available supply and it is expected that this situation son, indicating a decline of 4 per cent. In Texas, the consumpWill prevail for some time. The principal problem of unemploy- tion of cotton in recent months has shown relatively small flucment is expected to develop in connection with unskilled, work- tuations. Total consumption during the first 10 months of the
ers; however, the available information indicates that a large current season amounteclJ to 158,000 bales as compared with
percentage of such employees released from war plants disappear 172,000 bales in the corresponding period last season.
MONTHLY BUSINESS REVIEW
CON DITION OF THE FEDERAL RESERVE DANK
(Thousands of dollars)
June 15,
June 15,
1045
1044
T otal ensh reserves. . . . . . . . . . .. . . . . . . . .... . . ..... . $52!,4021,7e
S51¥,3 87
Discoun ts for member b.nks .. ...... ............ . ..
N
N0 ne
O. S. Government securities...... .. .. . .... ... ..... ,748,151
542,022
Totol earni n~ assets.............. . .. .. ...... ... ..
748,151
542,022
Member banks resorve deposits... . ................
673,087
555,770
Federal Reserve Notes in aotunl circulation.. . . . . . .. .
573,255
461,644
Mav 15,
1045
1554,5 13
200
725,065
725,805
080,235
565,363
CONDITION STAT1STICS OF WEEKLY REPORTING MEMBER BANKS
IN LEADING CITIES
(Thousands of dollars)
June 13,
Juno 14,
May 0,
1045
1944
1045
Total loans and investments ...... . ................ $1,752,584 $1 ,382,170 $1,673,130
Totolloans . .. ...... ...... .. ...................
H2,561
327,938
406,971
Commercial, industrial, and a,ltrieulturnllonns....
275,049
232,050
207,427
Loans to brokers and deniers m securities... . . . . .
5,077
2,387
5,957
Other lo.ns for purchasing or carrying securities . .
74,964
9.8,191
49,866
Real estate loons........ .. ..... ... .... .. .....
22,082
19,533
22,449
214
177
154
Loans to banks .. ...... .. ..... .. ..............
All other loan..... .. . .. .... .... ..............
63,371i
44,001
01,1l8
Totol invcstmenu.. . ... . ...... . ... . . . ........... 1,310,023
I ,0Ii4,212
1,266,1 65
U. S. Tronsury bills.... .. .. . .. .. .. . . .. .. . .. .. .
73,719
89,[J35
58,039
U. S. Treasury eertifi oates of indebtednes.... . ..
316,003
275,922
30D, 170
U. B. Trensury notes.... .. . . . . ..... .. . ..... .. .
249,698
203,371
220,732
U. S. Government bonds. ... . ...... .. . . .. ... ..
561,821
412,:l01
539,341
Obligation. gu.ranteed bv United States Oov't..
100
20,719
9,740
Other securi ties .... .. . . : .. .. .. .. .. .. .. .. .. .. .
48,592
43,824
48,137
R eserves with Federnl Reserve Bonk.......... .. . . ..
370,136
320,054
340,840
Bnlanee. with domestic banks. . ......... . ..........
279,855
215,445
222,527
Dem. nd deposits-adjustod"....... .... ........... 1,205,044
1,12·1,693
1,274,630
Ti me deposIts... .. . . . . . . .. . . . . . . .. . . . . ... . . . .•. . .
240,274
184,366
243,401
Uni ted St.ntes Governlllent dopo,its. . . ... . . .. .. . ... .
222,786
97,707
135,129
Interbank deposits................................
56~1240
451,384
510,255
Borrowings from Federal Reserve Dnnk..... . . . .....
Nono
None
None
' Includes nil demand deposits otber than interbank and United etntes Government, 1e.~ B
cash items reperted ns on hand or in proness of collection.
DEBlTS TO INDIVIDUAL ACCOUNTS
(Thousands of dollnrs)
May
May
Pctg.ehnnge
1945
1944
over yenr
16,252
+11
Abilene .. ............ .. . S 17,075
Amnrillo.. ............ ..
49,080
41,751
+10
Austin .... .. .......... ..
63,495
76,106
-17
Beaumont ....... .. .... ..
58,004
51,155
+14
Oorpus Christi... ........
55,121
45,038
+20
Corsicana . . . . . . . . . . • . . . .
7,264
5,263
+38
Dallas.. .... ............
590,447
511,070
+16
EI Paso .................
64,342
56,883
+13
Fort Worth .... .. ........
224,200
204,004
+10
Galveston . .. .. .... .... ..
43,577
40,140
+ 9
Houston ...... .. .. .......
588,885
525,668
-1-12
14,024
12,834
+ 9
Laredo. .... .. . ...... . .. .
Lubbock. . . . .. . . . . . .• .. .
30,593
24,374
+26
Monroe, La.. .. ...... .. ..
18,607
16,718
+12
Port Art.hur .. .. . ... .....
23,506
21,802
+ 8
Roswell, N. M......... ...
9,280
8,232
+13
San Angelo.. ...... .. .. ..
17,505
14,280
+23
San Aatonio . .. .... .. . .. .
173,716
148,585
+17
Shreveport, La . ... . , . •.. .
88,583
78,704
+13
Texarkana· .... ........ ..
22,759
17,462
+30
Tueson, Ariz.. .. ... ... ...
36,313
29,072
+25
ir~~~: : :: :: : :: :::: :: : : : :
Wichitn Falls... .........
~~:m
33,380
~g:r~~
28,080
+~~
+10
April
1945
15,724
45,48 1
66,252
52,777
51,984
5,840
545,M4
56,351
192,011
40,P05
561,337
12,223
28,067
15,959
23,058
8,000
15,374
147,452
84,792
20,391
32,760
~~:g~
29,126
over month
+14
+ 0
- 4
+10
+ 6
+24
+ 8
+14
+17
+ 7
+ 4
tl57
17
+ 2
+ 7
+14
+18
+ 4
+12
+11
:I: ~
+15
GROSS DEMAN D AN D T I ME DEPOSrrS OF MEMBER BANKS
(Aver.ge daily fig ures-Thousands of doll.rs)
Country banks
Combined tota l
Reserve city banks
Gross
demnnd
1043 .. .. . .. . .. . $2,846,872
1944 . . . .. .. .... 3,275,467
1045 ... .. . . .... 4,104,746
1045 . . . . . . . . .. . 4,016,752
1945 ... .. ...... 4,050,000
1045 ..... . .. . .. 4,030,267
1945 .... ....... 4,002,587
Gross
Gross
']limo
demand
Time
T ime
demand
$235,518 $1 ,580,606 t139,352 $1,266,206 $ 06,166
291,230 1,60'1,017 180,464 1,581,450 110,775
345,591 2,090,671 218,338 2,014,075 127,253
354,586 2,020,660 224,548 1,996,092 130,038
367,380 2,045,585 232,000 2,004,415 134,780
380,585 2,030,420 242,778 2,008,838 137,807
303,090 2,044,524 210,140 2,048,063 143,050
SAVI NCS DEPOSITS
May 31,1045
Beaumont • .... . . . .. •. . ..
D.llas ............... .. .
EI Paso . . . ..... .. .... ...
Fort Worth .. . .. .........
Galveston .... ...... . .. ..
Houston .............. ...
Lubbock ....... . ........
Port Arthur ... . .... ... . .
San Antonio . . . ....... .. .
Shreveport, La . .. .. . . ....
W.co . . . .... . .. .. ... .. . .
Wichita Falls . ... ... .....
All other . .... ...........
Total . . .. . ... ..
N umber of
reporting
banks
3
8
2
3
4
9
2
----------------Number of Amount of
5
3
3
3
58
savings
depositors
12,075
106,434
25,032
37,917
21,364
80,000
807
5,625
32,850
31,917
8,774
6,836
56,905
105
437 ,1 34
2
snvin~s
deposlw
S 6,724,808
57,106,089
17,500,048
26,405,983
17,068,465
55,987,073
611,100
4,654,126
34,702,355
21,385,470
7,106,110
4,340,582
42,480,170
-----$206,173,302
+~
:W
+1~
:ril
':": 'f
INDEXES OF DEPARTMEN'r STORE SALES AN D STOOKS
D.ily average sales --( 1035-1930 = 100)
- - - - U n n djustod t t - - - - - - - - -Adjustod- - - - May
Aoril
March
May
Mil),
April
March
M.Y
1045
1046
1945
1944
1945
1945
1945
1044
248
228
269
228
253
240
283
228
Di,trict .... .
225
267
221
272
250
276
243
Dnll"" .. . .. . 247
237
210
255
232
241
233
274
231
Houston .... .
Pct~.ehaago
Totnl- 24 cities .. .. .. : ... $2,284,636 $2,017,260
+13
$2,105,458
+ 9
·Ineludes the figures of t wo banks in Texnrknnn, Arkansas, 10Cllted in tho Eighth District.
May
May
J. nuary
February
March
tlrii
ay
WHOLESALE AND RETA !L TR ADE STAT ISTI CS
,..------Porcentage cltan~p in:,..----Net sale s - - - v - - - Stoek s t May 1945 from
J.n. I to
MIlY 1945 from
Number
May
April
M.y3 1, 1045
May
April
of
Retail trade:
fi rma
1944
1945
fro m 1044
1944
1945
Depnrtmen t storp.:
48
Tota l I It h Dis! ... . .
+ 0
+ 18
+13
+ 15
+ 4
n.llns .......... .
7
+12
+ 19
+ 16
+ 26
+\6
4
Fort Worth ...... .
+ 11
+ 13
+ 15
- 5
+11
7
Houston ......... .
+22
+ 6
+ 3
- 2
+ 2
+20
+ 10
+22
+27
- 15
San Antonio ...... .
5
Shrovel'ort, Ln. . . .
3
22
+'0
Other cities .... . .. .
Retnil furniture'
+2
Totnl 11th Dist.... .
56
+ 10
+1
+ 2
-6
+7
+ 1
+64
Dollns" " " .. .. ..
5
- 9
-10
- 2
+26
EI Paso. . .. .. .. .. .
3
Houston...... .. ...
7
+ 10
+4
-22
-4
Port Arthur. . . . . • .
3
Siln Antonio.. . .. . .
3
+5
+ 5
Wichita F·.lIs. .....
3
+2
+16
Jndopon<ien t stores:·
Oklahoma. . . . . . . . .
373
+1~
+ 13
+8
Texas.. .. .. .. .. .. .
081
+ 14
+ 10
+6
Whol""nle trade:'
Automotive supplies
4
+33
- 1
~Ieotrien l supplies..
3
+68
- 4
.
GrocorlCl! .. .. .. ....
26
- 1
+ 7
':"::i i
':":'5
HardwAre. ...... .
15
+ 0
+ 3
+ 11
+ 3
+ 1
"Compiled by Un ited St,t.cs Dureau of Census (wholesale trade figo re., prelimio. ry).
tStocks at end of month.
tChango less than one-lull of one per cont.
May
1945
115
Distric •.. . . .
ftUllad justed for
Stooks-(1923-1025 a l00)
Unadjustedtt
May
May
April
March
1945
1944
1945
1045
114
106
08
111
scasollnl variation.
Adjustod~
April
1945
107
savinl!8
cposiw from
May 31,
1944
+23.1
+40.9
+30.9
+38.5
+10.4
+28.6
+27.8
+23 .4
+34. 1
+34.8
+30.9
+18.2
+30.5
April 30,
1945
+ .5
+ 2.4
+ 2 .2
+ 2.2
+ 1.0
+1.7
+ 7.2
+ 1. 4
+ 1.3
+ 1. 6
+ .0
+ 4.0
+ 1. 6
+32 .8
+ 1. 8
01
CRUDE OIL PRODUCTION-(Bumls}
Increaso or deerensc in dailY
May 1045
averago production fr~
Total
Daily nv~.
production
production
Mry 1044
April 1045
243,900
+ 5,513
+3,640
7,560,000
North Texas .. ... ... .... .... .
15,354,300
405,300
+ 65, III
+5,41~
West Texas ........... . . . ... .
518,000
+ 10,550
- 3,04
10.058,000
Enst Texas . ........... . ... . .
61
11 ,025, 150
355,650
+ 48,277
+3,2""
South TcxM . . .... . .. . . . .. .. .
17,462,300
Texas Coastol. .......... . ... .
563,300
+ 42,973
~
Total Texas .. . . . .
NOIv Mexico ... . .. . .. .. . . . .. .
North Louisiana .. .. . . .. ... . . .
67,460,650
3,220,900
2 , 19~, 150
2,176,1 50
103,900
70,747
+ 178,424
5,924
3,413
'fatal Dist rict . . . ..
72,874,700
2,350,797
+ t60,087
SOUR OE : Estimated fro m American Pet roleum Institute weekly reports.
_+6,88 1l16D
-
365
------+5,081
VALUE OF CONSTRUOTION OONTRACTS AWARDED
(Thousands of dollars)
May
May
April
Janu.ry I to MaY4~1
1045
19 •
1945
1944
1045
E leventh District-total.. . S 11,752
$ 9,039
$ 31,242 $ 114,044
$ 70,~
1l,830
15,~",
Residential . . . . . . . .. . . .
4,055
066
3,263
102,214
66,'""
All other. . . .
7,607
8,073
27,979
1,255,101
706,~
United Stnt~..·--total. ....
242,528
114,202
395,798
Residential. .. ..... . ..
47,206
34 ,476
42,745
155, 730
118,O'~
1,099.371
628,
AII othcr. . . . . . . . . . . . . .
1P5,317
109,726
353,053
'37 stotes cast of t he Rocky Mountnins.
SOURCE: F . W. Dodge Corporation.
BUI LDIN G P ERMITS
Pero",,11
Percentage eh.nge
May,1 045
valuation from
Jan . l toMay3 1, 1045 eh1;
__- - - -___- - - - -_ _- _ _
Percento~e ehnnge in
M.~
194
March
1945
103
No.
Abileno .. . ...... .
Amarillo ...... ...
Au.tin .... .. . .. . .
Beaumont .... . . ..
Corr,us Ohristi .. . .
Dal as . . .. .. .....
1\:1 Paso ..... .. ...
Fort Worth . . . .. ..
Ga lveston ....... .
Houston ..........
),ubroek .........
Port Arthur .... . .
fhn .I\ntonin ...
Shreveport, I a. ::
Waco . . ..........
Wichita Fnlla . ... .
7
123
102
198
24 1
740
68
384
64
411
11 3
11 4
790
258
177
51
Valuation May 1044 .Apr 1045
16,885
- 14
+ 25
245,590
+ 98
+ 136
140,541
+200
+ 4
70, 105
- 18
+ 69
512,057
+343
+149
- 41
876,090
+ 36
133,273
- 41
+ 170
763,284
+ 138
+ 40
- 23
98,869
+ 84
4,730,031
+403
+302
167,881
+ 18
+ 93
02,200
0
+ 145
478,607
-I- 53
+ 10
225,044
+244
+ 50
420,500
+ 62
+627
135,330
+478
------
Total. . . . .... 3,840 $9,073,093
· Over 1,000 per cent.
•
+124
+ 134
~...:._:..:.:.v8IUJI fi
No.
Valuation fr0 1l11
11
53 S
68,755 - ~
445
834,602 -1"311
604
820,102 -I" fl
828
470,165 -I" 1;
907
1,306,598 -1"1~
3,276
2,936,170 - ,:
280
330,226 - ~
1,600
2,623,958 -I" ~
303
317,660 1,617 12,732, 757 t-l"~
620
728,362
II
407
206,063
,
4,336
2,221,128 tJt:
1,084
942,871 'T II
419
603,295 :tIP
203
242,878 ~
16,987 527,470,298
-I" (
MONTHLY BUSINESS REVIEW
JULY 1,1945
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Oompiled by the Board of Governors of tho Federal Reserve System)
INDUSTRIAL PRODUCTION
PUlCtMT
200
'.0
V
.
160
I
140
~
•0
I. 37
1939
,.0
IGO
/
100
194~
1943
1944
194e
80
Steel production was maintained at a high level in May but declined somewhat during the first
three weeks of June. Production of nonferrous metal products showed a sharp drop in May following
a large rise earlier this yea r. In June brass mill products and aluminum were made available for general
civilian use and afcer July 1 some steel also will be released.
sh~edera l Reserve index. Monthly figures, latest
Wn arc for May, 1945.
DEPARTMENT STORE SALES AND STOCKS
oou... """" IE IuaON4LlY AOoIUlnD.llnoJl ·1C)O
""tlll1'
2'0
llV
120
~
100
~
I---'
~
19"
I9J8
.0
\
.0
DISTRIBUTION
Department store sales, which had declined sharply in April, increased in May and the first half
of June, after allowance is made for the usual seasonal change. In May sales were 4 per cent larger than
in May 1944, while sales during che first two weeks of June were 16 per Cent greater than in the corresponding period last year.
200
ffiIr:-A i- I
~. '- . ~'J-{ \/\J- \'1I
140
220
1\ ~:'::~ '11- \
140
,.0
,HT
240
•
'.0
'.0
Production of tex tile, leather, paper, chemical, and petroleum products showed little change in
May and total output of nondurable goods was at a level 3 per cent above that of a year ago.
Coal production declined 8 per cent in Mayas anthracite output dropped sharply due to interruptions in mine operations in the first three wccks of the month. In the early parr of June, production
of both amhracite and bituminous coal increased to about the level that prevailed ea dier in the year but
was still .omewhat bel ow the rate of output in June 1944. Output of crude petroleum was maintained
in record volume in May and the early part of June.
,Ult
220
200
STOCKS
120
VI'
~i~Y
100
Most classes of freight carloadings showed seasona l increases in May and the early part of June and
remained at a level slightly above last YC:lr's high level. Railroad shipments of manufactured goods,
which reach ed a record volume in March of this year, have declined only slightly since that time.
80
r.l39
1940
1941
t942
1943
1944
1945
sh Federal Reserve indexes. Monthly figures, latest
own arc for May, 1945.
".-
COMMODITY PRICES
WHOLESALE PRICES
Wholesale prices of consumer goods continued to advance from the middle of May to the middle
of June. Anthracite was raised $1 a ton, food prices increased somewhat further, and various miscellaneous products were higher. On rhe other hand, it was announced that maximum prices on used cars
would be reduced 4 per cent on July 1 and additional new regulations have been issued recently covering
prices of clothing, automobile repairs, and some consumer durable goods.
fllfII«NT
140
---.----,r---, 140
120
-"':''':;;''+---1 120
AGRICULTURE
I~r----t----~--~~~~~~~I;;::=F:
100
-~ -
80
1940
1941
1942
194~:
BANK CREDIT
1944
40
194'
Bureau
. . • mdexes.
.
latest
sho of Lah'
. If Statlstlcs
Weekly figures,
wn arc for week ending June 16, 1945.
GOVERt/MENT SEC
'-"UR1TY HOLDINGS OF BANKS IN LEADING CITIES
28
.- or~
24
c-
'ILLtOtftW
20 l -
BONOS
I. l 12
f
l-
V
rt--
t-,
E
~19
I
I
I
9"0
19<11
ltJ
..........
••
24
V
I----
20
16
II
,
rJ&JF01ts',
i
"Rl"<Al~
}-lA--_
~
f1j:Yl~
1942
194'
1944
Prospecrs for major crops have dereriorated somewhat in the past month, but still compare iavorably with the past three YC:lrs of generally abundant ha.r vests. A record wheat crop of over a billion
bushels was indicated by June I conditions; cold, wet weather in May has delayed most other crops.
Milk production was at a record level in May and 6 per cent larger. than laSt year, while marketings
of meat anima ls and poultry products were in smaller volume.
60
...... ,- - - - -
1939
,..,1',
A further reduction in operations at shipyards accounted for most of the decrease in activity at
munitions plants, alrhough there were small decreases in activity in the machinery and aircraft and
other transportation equipment industries. The decline in aircraft was in accordance with reductions
in schedules made prior to V-E day. At the end of May the Arm y Air Forces announced a cutback in
proc urement which will reduce total military aircraft production in the last quarter of the year to a
level 30 per cent below that of March .
140
1941
' .~
As a result of further decreases in activity at munitions plants, the Board's seasonally adjusted
index of industrial production declined in May to 227 per cenr of the 1935-39 average as compared with
231 in April.
200
120
1940
,
220
/
/
1938
, 1(
INDUSTRIAL PRODUCTION
.1- I'"
J
iUl. o d...,Jio! ~rr: )Z
240
'w- h
V
220
100
Industrial activity and factory employment continued to decline slightly in May. Value of department store sales increased in May and the early ~Jart of Tune, following the sharp decline in April.
260
/\
240
120
,,, ".,
I'HYIltALVOt.UMtU AIQH,I,LlYAD.lUSTtD,1U$·n · 1OO
260
12
o
1945
. xcludes
..
\>rtor
to F bguannt
. ee d securities.
Data not ava''1 abl e
on April 1~ ~~~y 8, 1939; certificates first reported
arc for Jun' 137 2. Wednesday figures, latest shown
e
,1945.
During the four weeks ending June 13, covering the period of intensified sales of secunt,es to
individuals in the Seventh War Loan, loans and investments at reporting banks in leading cities increased
by close to 1.7 billion dollars .. Loans fo~ purchas.ing. and ~a:ryi?g Govcrlt~ent securities rose by 6'20
million dollars, as investors adjusted their portfo"os III antiCipation of security purchases. Advances to
brokers and dealers accounted for 360 million of the increase and loans to others for 260 million. Government sec urity holdings of reporting banks rOse by 825 million dollars, reflecting continued purchases
of bonds.
Deposits of individuals and businesses at weekly reporting banks increased by' about 1.3 billion
dollars during the first four weeks of the Drive. U. S. Government deposits at these banks declined by
300 million dollars. The time deposit expansion slackened, presumably due to che \'Var Loan Drive. As
a result of these developments the weekly average level of required reserves at all member banks increased
by around 200 million dollars during the first four wccks of the Drive.
Reserve funds to meet the increase in required reserves and a reduced currency drain of 160 million
dollars were supplied through an increase of 435 million in the Government security portfolios of
Reserve Banks and by substa ntial member bank borrowing from the Reserve Banks shor tly prior to and
early in the Drive. Borrowing from the Reserve Banks rose in early J1l1le to over 900 million dollars
outstanding, the largest amount since the spring of 1933. The total increase in Reserve Bank credit
more than offset reserve needs and the average level of excess reserves rose by about 350 million dollars
to close to 1.4 billion outstanding in mid-June.
In the week ending June 20, when large payments were made by corporations and others for
securities purchased in the Drive, there was a shift of deposits from private accounts to reserve frcc war
loall accou llts and a consequent reduction of 440 million dollars in required reserves of member banks.
Member bank borrowings declined in the week by nC:lrly 55 0 million dollars. Reserve bank holdings of
Government securities, however, increased further.
@FedFRASER