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MONTHLY BUSINESS REVIEW of the FEDERAL RESERVE BAN K o f Dallas ~~~~~======~==========================================================~======================== VoIume 26, No.4 11 T J This copy is released for pub· Da as, exas, une 1, 1941 lication in afterndon papers- May 30 ~~~==~==============================~====~============================~======~~~====~= The number of business failures in the Eleventh District deDISTRICT SUMMARY A.ctivity in most lines of business and industry in the clined further during April and liabilities of defaulting firms Eleventh District during April was either maintained close to were the smallest for any month thus far this year and were t~e advanced level attained during the first quarter of 1941, or 9 per cent lower than in April, 1940. According to figures compiled by Dun & Bradstreet, this district had 22 bankS OWed an improvement. The value of construction contracts aWarded rose sharply to the highest level of record due in part ruptcies during the month, with liabilities aggregating to heavy awards for national defense projects. The rate of pe- $196,000. troleum production fell off slightly in April, but crude oil runs AGRICULTURE to refinery stills reached a new peak, reflecting the heavy deFarmers in nearly all sections of the Eleventh District made rand for refined products. Activity at cotton textile mills in rapid progress with plowing and planting operations during the eXas continued to expand. Although a seasonal contraction :O?k place in operations at cottonseed oil mills, output and first three weeks of April, but heavy rains in the subsequent hipments of cottonseed products were substantially larger than two weeks brought field work to a virtual standstill, particuthe respective totals in April last year. The distribution of larly in the eastern half of the district. In the latter area row lllerchandise through reporting department stores expanded sea- crops are from one to six weeks late, and the cultivation of Sonally in April and exceeded the volume of sales in April last crops that are up has been seriously delayed. Moreover, some year by a wide margin. Sales at reporting wholesale establish- acreage in north and east Texas intended for planting to corn rents were about the same as in March and nearly one-fifth may be diverted to grain sorghums, due to the lateness of the arger than a year ago. Although row crops in the eastern half season. Although the generally cool weather and wet soil this of the district are later than usual, the outlook for agricultural spring have retarded plant growth and field work in the eastern half of the district, the outlook for agricultural production ~~d !ivestock production is promising throughout most of the and livestock development in the western half of the district Istnct, as physical conditions are generally favorable. is the best in several years. In northwest Texas, seeding of row BUSINESS crops is expected to begin at about the usual time under almost ideal moisture conditions. The cotton crop is making good t .The April business of 'reporting department stores in this disprogress in south Texas, but considerable replanting will be rtc~, which was augmented by heavy pre-Easter purchases ~urmg the early part of the month, was 8 per cent larger than necessary in central Texas and along the Gulf Coast, due to the Ib. March and the dollar value- of sales was one-fifth greater damage caused by heavy washing rains. A period of fair weather ~ an in April last year. The gain over the month was seasonal will enable farmers to make rapid progress in overcoming the lU character and this bank's index of department store sales, handicap of a late start. ~hich is adjusted for average seasonal changes and the variable The Texas wheat crop responded to favorable physical conate of Easter, remained at 118 per cent of the 1923-1925 ditions during April, with the result that prospective producaVerage. Department store business during the months of tion on May 1 showed a marked gain over that a month earlier. March and April this year, which reflects total Easter purchases, According to the Department of Agriculture, the indicated Was 12 per cent greater than in the corresponding two months production of wheat rose 6,200,000 bushels in April to a total ?f 1940. During the first half of May, sales at weekly report- of 47,614,000 bushels, which, if realized, will be the second Ing department stores were 18 per cent above those in that largest crop of record. The May 1 estimate of wheat producperiod last year. tion in Texas compares with a harvest of 29,355,000 bushels in . Merchandise inventories at reporting department stores were 1940 and with an average production of 31,360,000 bushels lUcreased by more than the average seasonal amount in April, during the ten years, 1930-1939. Wheat acreage abandoned in d the adjusted index of stocks rose to the highest level since Texas, which is estimated at 22 per cent of the 4,360,000 acres Ovember, 1930. At the close of April the value of inven- sown last fall, compares with an average abandonment of 33 per tories Was 3 per cent higher than a year earlier. turchases by retailers during April at representative wholeCONSTRUCTION CONTRACTS AWARDED e firms in seven lines of trade operating in the Eleventh Dis[LEVENTH ftDfRAL R£SlRVt DISTRICT sa. t lCt reflected the strong consumer and industrial demand for MJ..LLL,!!'O~"'U;or!!:..OO~LL~AASL-"-_-'-_--'_ _"-_-r_--,_ _.,-~~~~LAAS "" t / products of industry, as well as some tendency on the part o I retailers to build up inventories of merchandise. Aggregate 40 ~-+--+--l--+--+--I--+--I - - ! - - - I 4 0 Sa es during April at 71 reporting wholesale firms were nearly Ine-fifth greater than in the corresponding month of 1940, the ~rgest gain recorded for any similar comparison in recent years. 30 I---I---+---I---I---+---I--+-n mong the individual lines of trade, substantial increases over \ year ago were recorded in the distribution of drugs, groceries, I- f - - - f - --l 20 e eCtr~cal goods, hardware, including industrial supplies, and 201---1---+--1-lllachmery and equipment. During the first four months of the ~ul'rent year the business of reporting wholesale firms averaged --+---110 4 per cent greater than in that period of 1940. Wholesalers 10 Clntinued to build up their respective inventories, and at the ~ Ose of April the dollar value of stocks at reporting firms was 6 per cent larger than a year earlier. N h This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW cent of seeded acreage during the past ten years. The indicated per acre yield on the area remaining for harvest was placed at 14 bushels on May 1, as against the 1940 and the ten-year average yields of approximately 10 bushels. The estimated production of wheat in Oklahoma showed a small decline between April 1 and May 1 but prospects indicate an above-average harvest. The condition of oats and tame hay in this district on May 1 was well above that a year ago and the ten-year average. The May 1 condition of peaches in Texas indicated a record harvest of 2,410,000 bushels. A considerable quantity of the 1941 citrus crop is reported to be dropping to the ground; nevertheless, the bloom and set of both oranges and grapefruit were heavy and the production outlook is generally favorable. Livestock ranges in the Eleventh District continued to improve under favorable moisture conditions during April, and prospects are now favorable for good summer grazing in virtually all areas. In fact, the condition of ranges in Texas at the beginning of May was the best for that date since 1926, and range vegetation is furnishing livestock with complete sustenance in all districts, despite the need for dry weather in east and southeast Texas. Livestock are responding to the favorable range conditions; on May 1 their condition was sharply higher than the average for that date in all sections of the district. According to the Department of Agriculture, the movement of Texas cattle to northern feed lots was smaller than usual during April, due apparently to the excellent range conditions. Sheep shearing in Texas and New Mexico has been retarded by frequent rains, and as a consequence, marketings of yearling lambs have been delayed. However, the excellent condition of sheep and lambs on May 1 indicated that heavy shipments would be made in May and June. The Department of Agriculture reported that fleeces this year are of good staple length and contain less dirt and grease than a year ago. Prices of cattle and calves on the Fort Worth market showed wide fluctuations during April and the first half of May, but on occasions some grades of animals brought the highest price of the year. The net changes in market quotations for beef animals between April 1 and May 15 were small; prices during that period averaged considerably higher than a year ago. Hog prices ruled strong throughout April and during the second week of May the top price rose to $ 8.95 per hundredweight, WHOLESALE AND RETAIL TRADE STATISTICS , . - - - - - P c r centage ohango in: , Numbor ~ Not sales---v--Stooks--.. of April. 1041 from Jan. 1 to April. 1941 from reporting April, March, Apr. 30, 1941 April, March, Rotail trado: firms 1040 1941 trom 1940 1940 1941 Department stores: Total lIth Dist . . . . 46 +21 + 8 +12 + 3 + 4 Dallas ...... ..... .. 7 +17 + 6 + 0 + 5 + 3 Fort Worth ...... .. 4 +27 + 6 +13 - 6 + 9 Houston . ...... .... . 7 +21 +15 +10 - 3 + 3 San Antonio .. ... . . +18 + 9 + 4 6 +23 + 2 Shreveport .... ... . 3 +15 +17 + 9 Other cities . ...... . 19 +21 +10 +13 Indepondent stores:· Arizona. . . . . . . . . ... 264 +21 + 79 +11 New Mexioo .... \.. 175 + 8 + + 7 Oklahoma. . . . . . . . . 539 +16 - 2 +13 Texns.. . .. . . . ..... 1,055 +20 + 4 +14 Wholesalo trade:· Maohinory, cqpt. &: supplies... .. . .... . 3 +12 -13 +30 Drugs (inol. liquors). 14 + 9 - 7 -2 +8 Eleetrioal supplies. . . 4 +48 + 7 Groceries.. .. .. .. .. . 30 + 12 - 6 +ii Hardware. . .. . . .... 12 +33 + 8 +23 Surgicol equipment . . 5 -12 No ohg. Toboooo & produots. 3 + 1 +11 - t ·Compiled by United Stotes Bureau of Census. fChange less than one-half of one per cent. INDEXES OF DEPARTMENT STORE SALES AND STOCKS (1023·1925 average - 100) April March February 1941 1041 1941 Sales (daily average): Without sensonal adjustment .•. .. •.. 117 112 100 With sensonal adjustment .......... . . 118 118 118 Stocks (end of month): Without scasonal adjustment .•.. , .. . 77 74 67 74 With sensonal adjustment ..•.••..•, .. . 72 70 April 1040 09 103 74 71 the highest recorded since September, 1938. The market for lambs followed an uneven downward course during the siJ(week period, due largely to seasonal factors, but the net decline in prices appears to have been small. FINANCE Following a substantial incr~ase during the first half of April, member bank reserve balances maintained at the Federal Reserve Bank of Dallas declined sharply on April 17, reflecting chiefly cash settlements for purchases of approximately $14,000,000 of two new issues of Reconstruction Finance Corporation notes that were allotted to buyers in this district. During the remainder of April reserve balances showed little net change, but resumed their upward trend during the first hal f of May, increasing $18,000,000 to an all-time peak of $258,400,000 on May 15. The latter increase resulted in a substantial gain in daily average excess reserves which rose to a leve£1 near the record of $95,300,000 recorded during the first h~1 of February this year. In addition to the heavy volume of ava l•lable funds on deposit at the Reserve Bank, member banks In this district continued tOo maintain large balances with correspondent banks. During the first half of April these balances averaged $544,000,0 00, which was an all-time peak. Federal Reserve notes of this bank in actual circulation followed a trend in April similar to that in the preceding th.ree months. A moderate return flow of currency from circulation occurred during the greater part of the month, but this movement was reversed by month-end requirements and on May 5 Federal Reserve note circulation, which totaled $103,400,000, was at a new peak for the third consecutive month. The demand for credit at weekly reporting member ba~ks in the Eleventh District showed a further contraction during the five weeks ended May 14. The net decline in loans during the period amounted to about $5,000,000, due principally to a decrease in advances for commercial, industrial and agriculci tural purposes. "All other loans," which include personal an instalment loans, continued to expand during April and the first half of May. Although the trend in total loans at reporting banks has been seasonally downward since mid-February, the decrease has been comparatively small for this season, and CASH FARM INCOME FROM THE SALE OF PRINCIPAL FARM PRODUCTS AND GOVERNMENT BENEFIT PAYMENTS (In thousands of dollars) r--February, 1941---.. Receipts from: Govern- ,,.-----Total receipts----___----~, ment February February Jan. 1 to Fob. 28 Crops Livestook· paymonts 1941 1940 1941 1940 Ari.ona ...... . Louisiana ..... . New Mexioo: . . 737 1,950 472 3,159 3,074 6,831 28' 126 Oklahoma .. . . . 3,417 7,600 5,092 16,109 13,376 31,661 74'149 10,233 13,010 11,623 34,866 34,585 78,760 ~ Texas .. ...... . ~:~~~ km 1,~~~ ~:~~~ ~:m Total..... 19,300 26,716 18,543 64,649 61,175 ·Inoludes receipts from the sale of livestook and livestock produots. SOURCE: United States Dopartment of Agriculture. u:m I!:m 144,168 131.204 LIVESTOCK RECEIPTS-(Numbor) ,---Fort Worth----.",-- San Antonio-b April April Maroh April April M19a~1 1941 1040 1941 1041 1940 38,384 33,175 19,083 14,884 iN~~ Cattle .......... ... .. .. .. 37,153 Calves .. . ............ . . . 18,844 10,174 16,390 15,547 14,307 4'171 17'094 Hogs .. . ................ . 49,040 36,162 53,887 12,265 8,321 87,719 146,318 45,439 8,172 6,740 ' Sheop . . ........... . COMPARATIVE TOP LIVESTOCK PRICES (Dollnrs per hundredweight) ,---Fort Worth----.",-- San Antonio---;-' April April Maroh April April MIO~I 1941 1940 1941 1041 1940 $10.00 $11 .50 $10.25 $ 8. 50 $10. 00 Beef steers ..... . ........ . $11.00 10.00 11.00 Stocker steers ........... . 11.25 .. 0:50 'jido 10.50 11.50 10.00 Heifers and yearlings ... . • 11 .35 7.50 8.50 7.50 8.00 7.00 7.50 Flutoh.r cows ..... . . . .. .. 11. 00 9.25 10.50 10.25 10.50 Calves .. ............... . 11.50 7.76 6.60 8.50 8.75 6.35 8.00 Hogs ................... . 8.25 7.50 8.25 0.50 11.75 Lambs ................. . 11.35 8 MONTHLY BUSINESS REVIEW on May 14 the total was only $3,500,000 smaller than the 1940 fornia, Illinois and Michigan regions. The advance in wholesale peak recorded in the final week of December and advances gasoline prices during April averaged about one-half cent per Were still $47,900,000 greater than a year ago. Investments at gallon. CONDITION OF THE FEDERAL RESERVE BANK repo.rting banks were increased further by $9,400,000 between (In thousands of doUars) A.pr~l 9 and May 14, reflecting substantial increa~es in holdings April 15, May 15, May 15, 1940 1041 104 1 of direct and guaranteed obligations of the United States Gov$323,408 $240,750 $341 ,530 cash reserves . . ......... ... ..•.... . ......... ernment. The rise of $6,200,000 in holdings of Government Total 335 53 43 Disoounts for momber banks .... ... .... ....... .... . 30 Nono None guaranteed obligations represents chiefly purchases of the new Other bills discoun ted ...... . . ..... ... .....•.... . .. 470 277 277 Industrial advances ....... . .. .. . . . ... .... . . . .. . , .. 95,234 88,040 ~econstruction Finance Corporation notes issued during April. United Slates Government seouri ties . . .... .... . . .. . . 88,040 88,376 9a.o75 88,300 corning assets ..... .. . .... . .... . .... . ...... . otal investments of these banks on May 14 aggregated $283,- Total 213,494 253 ,1 04 258,407 Momber bank resorve deposits .. .. . .. .... ... . . . ...... 00,567 78,714 300,000 which was only $3,400,000 below a two-year high Foderal Resorve notes in aotual oiroulation .. ....... ... 101,000 recorded on April 30, and $28,600,000 greater than a year ago. ~ross deposits at reporting banks showed wide fluctuations during the five-week period, but on May 14 they were about equal to the all-time peak established four weeks earlier. INDUSTRY A significant development in this district during April was the pronounced gain in construction work, reflecting chiefly ~ha:ply increased awards covering projects related directly or Indirectly with the National Defense Program. The value of COntracts let for new construction during the month, which rose to a record volume of $46,500,000 was more than double the respective totals for the preceding month and the correSPonding month last year. Among the principal classes of conStr.uction work, non-residential building showed the largest gain in value due to heavy awards for commercial, manufacturing and educational and science buildings. Nevertheless, residential building expanded sharply to the highest level in hece~t years. Awards for the construction of national defense oUslng and slum cl'earance projects showed a marked gain and aWards for private residential construction were maintained at t~e advanced level attained in March. Public works construction. during April closely approximated the heavy volume in tpnl last year, and public utilities construction, which has een in comparatively small volume in recent months, inCreased sharply to a level six times that in April, 1940. During the first four months of the current year, the value of all conStruction contracts awarded in this district amounted to $112,6 00,000, which was 71 per cent larger than in the same period ~f 1940 and about one-fourth greater than the previous record Or that period established in 1930. . Coincident with the heavy volume of construction work Initiated thus far this year, production and shipments of cement at Texas mills have been in record proportions and h~tivity at lumber mills in this district has been considerably Igher than a year ago. During April the volume of unfilled orders on the books of reporting lumber mills showed a subStantial gain, and at the close of the month the backlog of orders was about double that at the end of April last year. . Developments in the petroleum industry in this district and In the United States during April included the continued Str.ong d em and for refined products and furt her mcreases. ' . m prices of gasoline, kerosene, fuel oil and lubricants. Production of crude oil during the month was in close alignment with de:and and above-ground stocks of petroleum showed litt~e hange between March 31 and April 3 o. The rate of crude 011 runs to refinery stills rose to an all-time peak, with the conse~uent expansion in output of petroleum products, but the eavy demand for products more than absorbed the increased ~UtPut. On May 3 stocks of gasoline and fuel oil in the United tates were about '3 per cent smaller than a month earlier and about 7 per cent lower than a year ago. Although markets for crude oil continued strong throughOUt the country, increases in posted prices during April and early in May were confined chiefly to the Appalachian, Cali- CONDITION STATISTICS OF MEMBER BANKS I N LEADI NG CITIES (In tbousands of dollars) May 15, April 9, May 14, 1940 1941 104 1 Total loans and investments. . ...... . .... ... ....... $598,404 $522.030 $504,11 5 Tota l loans . ...... . .. . .... . ....... .. . . . . .. .. ..... 315,223 207,301 320,235 Commeroial, industrial and agrioulturalloans . ..... 213, 156 175,433 210,257 Open market paper. .. . . . . .. . .. .. . .. . .. .. .. . .. .• 2,410 2.350 1,930 Loans to brokers and dealers in seourities. . . . . . . . . . 3,050 2,346 3,269 Other loans for purohasing or oorrying 1IC0urities. .. . 11,805 13,352 11,923 Real esla!.e loans.......... ......... . .. . .... . .... 23,486 22,423 23,8 14 Loons to banks ........ . ....... . .. .. .... .... , .. . 458 501 532 All other loans .. .... .... .. .. .. .. .. ............ · 00,840 50,860 59,50 1 Unitcd States Government dircet obligations......... 178,330 150,389 174,640 Obligations Cully guaranteed by United States Govt . . 43,4 01 45,940 37,207 Other securi ties. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 01.540 58,346 62,033 Reserves with Federal Reserve Bonk . ..... . ...... ... 102,208 135, 180 149,1 95 Balanoes with domestio bonks .... ... .. ....... .. ... · 310,102 314,628 300,451 Demond deposits- adjusted". .. . .. . . .. . . . ......... 501 ,343 470,4 82 546,487 Time deJloslts.. .. . .. .. . .. . . .. .. . .. .. . .. . .. .. . .. ... 136,304 130,541 130,050 United States Government deposits.. .... ... ........ 28,783 30,824 27,653 Interbank deposits ................. ·· · · · · .. ·· · · ·· · 20~JoOnOeO 272,40 1 289,776 Borrowings from Federal Reservo Bonk ......... . . .. N None None "Inoludes all demand deposits. other than interbank Il;nd United States Government, Ie.. oash items reported as on hand or In the process of oolleotlon. DEBITS TO I NDIVIDUAL ACCOUNTS (In tho_sand. or dollars) Petg.ohange April April 1941 1940 over year Abilene ........ .. .. ... .. . $ 12,098 $ 8,649 +4 7 $ Austin.. . .... . .... .. .... 37,947 30,403 + 4 Beaumont.. .......... ... 30,100 24,345 +24 Corsicana . .... ...... .. ... 3,811 3,342 +14 Dallas . . . ... ...... . .. .. . ... 311,555 257,803 + 21 EI Paso .. .. . .... . .. ..... 39,1 65 20,804 + 31 Fort Worth........ ....... .. 92,441 81,802 + 13 Galveston .. . .. . ....... .. . 20,277 24,001 + 17 Houston.... .. .. .. ........ 274,955 239,350 + 15 Port Arthur ........ .......~ 10,295 9,519 + 8 5,217 4,190 + 24 Roswell. .... .. ...... ...... Son Antonio .. ... .. .. .... 83 ,996 71,847 + 17 Shreveport ...... .. .. .... 50,757 46,236 + 10 Texarkana"............. . 9,834 7,25 1 +30 Tucson.......... .. ....... 15,000 12,022 + 24 Tyler 12,468 H,080 + 7 Waoo:::: : :: :: :::: : :.::::: 15,267 13,795 + 141 Wichita Falls .. ........ ... 18,080 17,327 + Maroh 1941 14,207 33,773 28,202 3,701 303,702 44,047 87,700 28,149 278,724 9,9 14 4,579 84,433 52,718 8,800 15,342 11,393 16,556 17,750 Petg.change over month - 11 +12 + 7 + 33 + - 12 + 5 + 4 - 1 + 4 +14 - 1 - 4 +12 + 2 + 9 - 8 + 2 Total .. .. .... .... $1,053,541 $901,097 + 17 51,044,470 + 1 .Includes figures of two bonks in Telarkana, Arknnsns, looated in the Eighth Distriet. GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS (Average of doily figures-in thousand. of dollars) Combined total Reserve oity bonks Country bonks Gross demand April, 1930 .. .. ...... $1,178,060 April, 1940 . .... . . .. · 1,340,972 Deeember, 1940 . . ... . . .. . 1,474,217 J anuary, 1941 ... . ...... 1,495,852 Fobruary, 194 1.......... 1,533,864 Maroh, 1941. ... .• . . .. 1,529,028 April, 1041 ..... • .... 1,541,825 Beaumont . .. ...... ···· · . Dallas . .. .... ...... ...... EI Paso .... .. . ...... .. .. Fort Worth ....... ...... · Galveston . . . . . . . . ... . ·· . Houston ....... . .... · .. · · · . Port Arthur . .. .. ...... Son Antonio . ... . ... .. .. .. Shreveport .. . . .. ... .. - • . Waco ... . .... .. ....·.. ··.. Wichita Falls . . .. . .... . . . All others . ................ Total .• , _ .. ...... Gross Gross demand Time domand Time $229.697 $672,316 $127,813 $505,750 563,873 128,764 777,099 232,400 632,3 14 131,022 84 1,903 237,308 639,018 133,1 00 230,594 856,234 134,206 657,083 24 1,40 1 870,181 649,080 130,080 244,000 870,948 050,139 135,900 801,686 243,942 Time $101,884 103,645 105,680 106,305 107,285 107,9 17 107,952 SAVINGS DEPOSITS Percentage change In April 30, 1941 savings deposils from r Number of Number of Amount of ~ Maroh 31, April 30, savings 8avin~s rec orting 1941 1040 deposi 8 depositors anks 10,339 $ 4,305,018 + 7.9 + .4 3 .5 26,862,302 + 2.2 02,128 + 8 8,482,834 + 4.4 19,OaO + .7 2 .4 13,179,023 + 1.0 + 35,074 3 - 1.1 12,081,053 - 1.9 19,113 4 .6 32,738,009 + 4. 7 + 78,189 10 3,250,705 + 1.0 + .7 5,975 2 18,048,900 +1.3 23,503 + .2 5 .8 12,270,209 + . 2 25,512 3 2.2 4,521,029 + .04 8,111 3 .8 3,581,530 - 2.3 7,139 3 .3 30,68 1,250 + .8 62,802 69 115 387,815 $170,011,801 + 1.8 + .1 MONTHLY BUSINESS REVIEW 4 Drilling activity showed a substantial increase during April. The daily average number of wells completed in the United States during the month averaged 15 per cent greater than in March; although the rate of completions in this district was 4 per cent smaller than a year ago, it was up 3 per cent in the United States. Activity at cotton mills in the United States continued to expand in April, and consumption of cotton recorded a new high for the second consecutive month. The United States Bureau of Census reported that a total of 920,000 bales of cotton were utilized during the month, including 45,000 bales distributed by the Surplus Marketing Administration for relief purposes. According to trade reports, mill sales of cotton textiles declined in April, but showed a noticeable upturn early in May. Despite the high rate of output, the backlog of unfilled orders is exceptionally heavy and apparently buyers are experiencing some difficulty in obtaining goods for nearby delivery. Prices of cotton yarn continued to advance during April, and in the first half of May increased quotations were effected on some cotton fabrics, including sheeting and print cloth. Prices of representative cotton textiles are substantially higher than the low levels prevailing a year ago. Mill margains, or the difference between the price of a pound of cotton and its cloth equivalent, rose for the tenth consecutive month in April to the highest level during the fifteen years for which data are available. VALUE OF CONSTRUCTION CONTRACTS AWARDED (In thousands oC dollars) April April Maroh January 1 to 1941 1940 1041 1941 $ 20,154 $ 21,774r Eleventh Distriolr-totnI .. . $ 46,512 $112,635 12,716 6,771 7,016r Residential. ......... .. 36,645 33,790 13,383 All other ............ .. 13,868 76,990 406,675 300,504 479,003 Unitod Stntes·-total. ... . 1,462,156 166,462 135,420 Residential. .......... , 147,859 542,086 240,213 165,084 382,044 All other ............ .. 020,070 ·S7 statu cast of the Rooky Mountains. I'-Revisod. SOURCE: F. W. Dodge Corporation. Abilene ........ Am.rillo ... .... Austin ... '.•'.. ... Beaumont ...... Coreus Christi .• Dol as· ......... E1 Paso .... ..... Fort Worth ..... Golveston ...... Houston .......... Port Arthur .... San Antonio .... Shreveport ..... Waco ........... Wiohita Falls ... April 30 1940 $ 66,046 24,389 41,067 969,447 409,386 560,061 BUILDING PERMITS Peroent_ie oh.nge Percent'ie April,1941 valu.tion Crom Jan. 1 to Apr. 30, 1041 ohan~e valuatIOn v v No. Valuation Apr.,1040 Mar.,1941 No. Valuation from 1040 48 $ 71,671 -73 211 S 463,958 + 10 +137 294,761 97 281 841,943 + 23 + 68 + 8 497,012 168 0 2,009,802 763 - 27 + 13 250,767 158 503 798,086 +105 + 65 + 77 232 1,981,504 5,565,800 946 +504 +114 +54 7 815 1,142,093 2,966 4,230,746 7 2 + 120 205,321 516 982,530 - 26 + 27 + 12 484,401 1,906,781 8 337 1,070 - 15 +11 + 341,118 269 - 42 784 1,140,940 +155 + 35 478 1,380,ROO 1,849 7,088,709 - 19 - 10 - 47 102 94,433 402 360,100 -13 - 21 + 26 440,070 508 2,068 2,387,901 - 23 6 + 10 240,200 -11 121 485 1,133,014 - 45 - 27 94 1,344,622 1,900,551 288 +462 +308 t 170,836 217 75 - 5 513,549 - 16 + 21 - - Consuming establishments in the United States continued to make heavy purchases of raw cotton during April. At the month-end their stocks amounted to 1,934,000 bales, which was moderately higher than a month earlier and nearly onethird greater than a year ago. As a result of the heavy commercial demand, -repossessions of cotton from Government loa~ stocks are proceeding at a rapid rate. Prior to May 5 approXImately 1,500,000 bales of the 1940 cotton crop that had been pledged as collateral for Government loans had been repossessed. During the final week in April and the first half of ?viaY, domestic cotton prices increased sharply to the highest level since July, 1937. On May 15 the price of cotton, middling, U-inch staple, at the ten designated spot markets averag.ed 12.59 cents per pound, as against 11.13 cents a month earh~r and 9.60 cents a year ago. The recent advance in prices IS attributed to the heavy domestic demand for raw cotton and to the prospective legislation which would increase Government loan rates on some principal farm commodities. No improvement dev~loped in the foreign demand for American cotton during April. Exports aggregated only 74,000 bales which brought total shipments for the season to 904,00 0 bales. The latter figure compares with shipments of 5,695,00 0 bales during the first nine months of the 1939-1940 season· Operations at cottonseed oil mills in Texas and in the United States declined seasonally in April but were maintained at a considerably higher level than in the same month of 1940. Production of products at Texas mills during April was aboUj double that in the corresponding month last year and at al mills in the United States output was nearly two-thirds greater. As compared with a year ago, shipments of cottonseed products from mills have shown a pronounced improvement during the past two months, cottonseed oil and linters showing the most significant gains. CRUDE OIL PRODUCTION-(Barrels} April, 1941 Inore.so or deorease in dailY average produotion ~ Dailyavg. Total April, 1940 Maroh,l94 1 produotion produotion - 3,644 + 3,030 5,342,500 178,083 North Te............. ....,. . ...... - 43,993 - 8,942 7,771,900 250,063 West Texas .. ............ ....... . . - 53,654 _32,569 428,807 E.st Texas ..... ... ..... ........ . 12,866,900 - 57,090 _ 13,747 5,834,600 194,487 Bouth Texas ............... .. + 355 - 2,179 7,557,950 251,932 Texa. Coastal. .... ,. ..... '.... . Total Texas ... ... . New Mexioo ... . ....... ..... . North Louisinna ............ .. 39,373,850 3,265,250 2,120,200 1,312,462 108,842 70,673 -158,026 - 3,076 + 1,690 Total Distriot ........ 44,759,300 1,491,977 -159,511 SOURCE: Estimated Cram Amerioan Petroleum Institute weekly reports. - _54,407 + 2,206 + 431 _51,770 - Total.... 3,622 $0,008,618 13,340 $31,415,316 + 36 + + ·Inoludes Righlond Park and University Park. tlnorease over 1,000 per oent. 7 STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS ~--Texas---v-United States----.. August 1 to April 30 August I to April 30 This season Last season This season Last season Cottonseed reoeived at mills (tons} ..................... 1,072,741 808,517 4,377,679 4,002,481 1,038,740 Cottonseed orushed (tons) ..... 934,012 4,013,564 3,951,304 Cottonseed on hand AprIl 30 40,748 (tons} ..................... 10,573 402,857 171,803 Produotion of produots: Crude oil (pounds) ......... 318,284,124 273,353,146 1,289,921,634 1,255,284,068 Cake and meal (tons) ....... 485,687 449,950 1,778,919 1,789,259 263,599 Hulls (tons) . .......... ... . 240,769 1,008,603 1,002,139 257,469 Linters (running bales) ...... 219,067 1,000,278 1,016,703 Stooks on hand April 30: Crude oil (pounds) ..... .. .. 17,047,060 20,275,73 47,966,657 68,622,374 Cake and meal (tons) ....... 58,871 41,388 266,255 151,905 85,975 Hulls (tons) ... .... .. . .. . " 20,453 109,414 63,810 Linters (running bales) ...... 65,687 93,043 257,983 305,933 BOURCE: Bureau oC Census. RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT THE PORTS OF HOUSTON AND GALVESTON-(Bales} August 1 to April 30 April April Maroh This season Last senson 1941 1940 1941 Receipts . ........ ...... . 111,064 98,475 93,738 1,790,190 3,70121'~~~ 870,343 3,2, Exports ....... , ........ . 79,267 195,905 104,306 .... Stooks, end of month .... . 1,882,269 1,376,601 1,009,601 CONSUMPTION, BTOCKS, AND EXPORTS OF OOTTON-(Bales} August 1 to April aO n April April Mnroh This season Last senSo 1941 1940 1941 Consumption at: 174 571 103.760 Texas mills ..... . ... ,. .. 23,401 10,790 21,157 6,905;238 5,06a,OOO United Sta teo mills . .... 920,142 623,008 854,179 U.S. stooks-cnd of month: In consllming estab'mts . 1,033,507 1,470,529 1,9n,238 Publicstg. & compresses. 12,374,839 10,732,200 13,243,673 E~rt~ from U. S. to: 1,748,3Jo~ uited Kingdom. . . . . . . 8,288 111,655 4,362 352,638 702, 4 33,016 None France................ None None 480,O~2 None Italy .......... .. . ..... None 47.404 None 18,9 NOM Germany ........ .. ..... None None None 1,022'm 11,071 42,340 26,196 201,309 Other Europe .......... 803, 32 68,965 11,324 54,314 8,185 000,1 281,080 ~r~~h~~ ~o~;;t~i~;. ·. :::: 43,326 55,700 58,540 5,604,062 Total OXportl .• __ 74,000 344,609 97,202 904,001 --- -- MONTHLY BUSINESS REVIEW JUNE 1, 1941 NATIONAL SUMMARY OF BUSINESS CONDITIONS (Complied by the Board of Governors of the Federal Relerve SYltem) ... 0'""'" INDUSTRIAL PRODUCTION I'OIM'T'III TDW. 0 80 f- Vr--' \ ./ 80 40 T~) IV J \ ..... / MANUFAjURES PRODUCTlON In April the Board's seasonally adjusted, index of industrial production declined to 139 per cent of the, 19~5-1939 averag~, a ~rop of 4 POlOtS fro~ March. The decline reflected chiefly a sharp reduction In output of bituminOus coal, as most mlOes were closed during the entire month. The mines were reopened on April 30 and in the first half of May coal output increased rapidly. Automobile production also declined in April, owing to stoppage of work at plants of the Ford Motor Company during an industrial dispute. This Was settled about the middle of the month and domestic output has since advanced to, a high monthly rate of over 500,000 cars and trucks. Announcement by the Oilice of Production Management that output in the twelve months ending July 31 would approximate 5,290,000 units indicates that a rate close to that now prevailing should be maintained through July, although there is usually a considerable decline in this period. Steel production waS curtailed, somewhat in the latter half of April by shortages of coal and coke and outpu~ declined from a level of 100 per cent of capacity to 94 per cent at the month end. Subsequently ou tput increased, reaching 99 per cent by the middle of May. In most other, lines activity continued. t? in.crease d~lring April an,d the first half of May. Machinery production rose further and activity In the alCcraft and shipbuilding industries continued to expand rapidly. Consllmption of nonferrous metals also advanced, and, as in March domestic sources of copper were, supplemented,?y I~rge supplies from L,.tin America. Textile pro~ duction rose further from the high rate prev31llOg In March. Consumption of raw cotton in April amounted to 920,000 bales, a new record level, and rayon deliveries also rose to a new peak. At wool textile mills activity was maintained near the high March rate. Continued advances were reported in the chemical, paper, and food industries. Anthracite production declined considerably in April, owing to a delay by dealers in placing usual spring orders, but increased in the first half of May. Output of crude petroleum showed little change from the March rate, following some increase from the reduced level of the winter months. Iron ore shipments in April amounted to about 7,000,000 tons, an exceptionally large amount for this time of year, and mine output of nonferrous metals continued at ncar capacity rates. Value of construction contract awards in April declined somewhat from the high March total owing principally to a smaller volume of defense plant contracts, according to F. \Y(. Dodge Corpora~ tion reports. There was an increase in contracts for publicly financed defense housing, and awards for private residential building rose by about the usual seasonal amount. DISTRIBUTION ea 60 40 ~NF.RALO 20 J '193!S 1936 1937 1930 1939 1940 1941 ~~de!al Res~rve index of physical volume of pre.- avetlon, adJusted for seasonal variation, 1935-39 te;rage 100. Subgroups shown are expressed in lOS of points in the total index. By months, January, 1985, to April, 1941. = -- WHOLESALE PRICES OF BASIC COMMODITIES ~- :btttE:m:: 180 r-==;::=~;;:=:;::=:::;=::' :-::::==::::-~ 180 100 r-----f----4---~ 1 60 \r----~---+----~A-~ ,40 120 100 120 _ ='""'~I__j--:.:t:-I-----I I OO 80 1935 1936 1957 1930 1939 1940 1941 ~~e~u of Labor Statistics' indexes based on tIOn declined In Aptll, oWing to reduced output of coal and automobiles, but increased rapidly in the first half of Mayas operations in these industries were resumed. I 00 ~A;:~~E..s..~ t;:?r~ V ~holesa~e ~ommodity prices adva?ced sha,rply in April and the first half of May, with the e~ceptlO~ ptl~clpall~ of ~etals for which maximum prices had been established. Industrial produc- 120 h NOHOURADl.E ~ 20 160 140 Ito 100 - eo 12 1989s utrs and 16 industrial materials, August, 100. Thursday figures, Janua ry 3, 1935, to May 8, 1941. = , EXCESS RESERVES OF MEMBER BANKS · Sales of general merchandise at department and variety stores showed about the usual seasonal rise from March to April, making allowance for the changing date of Easter. Retail sales of new automobiles, which had amounted to 526,000 cars and trucks in March, rose further in April and sales of used cars were at peak levels. Freight-car loadings declined sharply in April, reflecting a reduction in shipments of coal and coke, but increased in the first half of May when coal mines were reopened. By the middle of the month total loadings had risen to a weekly rate one-fourth higher than in the corresponding period last year and about the same as the seasonal peak reached in the autumn of 1940. COMMODITY PRICES ., 19J:J 1$,136 10 37 1936 IS39 1940 194 1 n':tneSday figures, January 2, 1935. to May 7, and' C91OIOeroiai loans, which include industrial 1987 agrICultural loans, represent prior to May 19, , so-called "Other Loans" as then reported. ~~OPIGU.u.I MEMBER ,BANKS IN 101 LEADING ,CITIES --~----+----+----~--~~~~- 1 2 r--i--+--I---!-,,:t!:.+---l---l.8 Prices of most basic commodities, both domestic and imported, advanced sharply further in the first half of May following a short period of little change during the latter part of April. Price increases were most pronounced for agricultural commodities reflecting in part the prospect of legislation raising Federal loan rates for basic farm crops. Prices of a number of semimanufactured industrial products, including petroleum products, coke, leather, textile yarns and fabrics, and building materials, also advanced. Metal prices, n~w for the most part subject to Federal control, remained at the maximum levels establtshed earlter. BANK CREDIT Bank loans and investments have shown a marked rise since last summer, the increase at reporting banks in 101 leading cities amounting to $4,000,000,000 . In April and early May holdings of investments by these banks increased consider~bly, ,m ostly at New, York City banks, ~eflecting substantial purchases of newly issued Reconstruction FIO~nce Corporatl~n notes. Increases 10 commercial loans in this period were somewhat smaller than durlOg the precedlOg two months. Excess reserves of member banks were $5,700,000,000 on May 14, Since January they have declined by about $1,100,000,000, owing largely to increases in Treasury deposits with the Reserve Banks and in currency in circulation. The decrease has occurred entirely at New York City banks. UNITED STATES GOVERNMENT SECURITY PRICES W ~~--=t=::t::::::t:~~ a 1935 1936 19~7 1938 1939 1940 1941 ednesday figures partly estimated, January 2, 1985, to May 7, 1941. * Prices of United States Government securities, which had risen sharply from April 9 to April 21, bsequently declined irregularly through May 15. On that date the 1960-65 bonds were of n ~int lower than on April 21 and about 1 y.; points below the all-time peak reac,hed on December 10, 1940. The yield on this issue is currently about 2.09 per cent, compared With 2'.03 per cent on December 10.
@FedFRASER