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MONTHLY BUSINESS REVIEW of the FEDERAL RESERVE BANK of Dallas Volume 30 Dallas, Texas, June 1, 1945 DISTRICT SUMMARY ~ eather conditions continued to have diverse effects upon ~grlCultural developments in this district during April and the b r~t half of May, field operations and crop growth generally /In~ retarded by excessive rainfall in the eastern half of the Istnct and by moisture deficiency over a large part of the westehn half. Prospective production of wheat in Texas decreased s arply, the May 1 estimate being about 25 per cent lower than a month earlier. Despite a moisture deficiency in some areas, rangkes on the whole are in better than average condition. LiveStoc . have made good gains and are moving to market in sub~~~ntlal v?lume at higher prices than a year ago. The value of I structlon contracts awarded declined 17 per cent from the rge March volume but were more than double that in April aa~: year. J?aily average petroleum production in April reached Drilf all-tl~e. peak at a level 12 per cent higher than a year ago. Ing activity continued to expand. Consumer buying at depa1tme.nt stores declined more than seasonally in April and was on y slIghtly larger than in the corresponding month last year. t BUSINESS S~les at reporting department stores in this district during pnl Were at approximately the same level as a year ago and 21 p~~ cent lower than the March sales to which Easter buying contn uted so heavily. Indications from weekly reporting firms seed- to allay any fears that V -E Day would bring about imme lately a substantial change in consumer demand at department stores. Sales during the first two weeks of May this year v:e~e per cent higher than a year ago. Among the principal Cities In which gains in April sales over a year ago were reported were San Antonio, Dallas, and Fort Worth, while decreases were reported in Shreveport and Houston. During the first four ~nths of this year, sales in the district were 15 per cent higher t an those for the comparable period a year ago. A ? ~n tpril ~he ratio of cash sales to total sales was 52 per cent, an ht e ratio of collections during the month to outstandings a.t t first of the month was 65 per cent. Neither ratio changed SlgtU cantly from that of a month ago or a year ago. .fi Sales at reporting furniture firms in April were at approxi- ~thly the same level as last year but were 11 per cent less than J e preceding month. On the other hand, inventories at the en o~ the month were 1 per cent lower than last year and 5 per ce~t gher than a month earlier. Cash sales during both March a~ April represented 23 per cent of total sales, whereas in April o 1944 this ratio stood at 19 per cent. 1Q . Tt~ furniture trade represents an important type of business w lch credit plays a very significant role. As a result of the ma~~ed expansion in consumer incomes, as well as Government cre It regulations, during the war years cash sales increased ap . I ' . prOXimate y four-fold from 1939 to 1944, whereas total sales ~~;:44 were only about one and one-half times the .amount ~ h . In other words, the tremendous percentage mcrease m cas Isales becomes less significant when the ratio of cash sales to ~ota sales i~ analyzed. This ratio, which stood at approximately hPer cent m 1939, had increased to 19 per cent in 1944. AIthough there has been a considerable expansion in cash sales over ~ e ~ast fiye y~ars, roughly four-fifths of every dollar spent on ~rUi~ure 1Q thiS district during 1944 involved a credit transaction, ut credit regulations h~ve shortened considerably the time 1Q Number 4 element involved in credit transactions. Year-end accounts receivable have shown a marked downward trend since 1941 and at the end of 1944 were approximately 45 per cent lower than at the close of 1939. The dollar value of year-end inventories at a selected group of reporting firms, after rising sharply in 1941, declined in subsequent years and in 1944 was 11 per cent below those reported in 1939. The decrease in the physical volume of inventories between the end of 1939 and the close of 1944 was probably much larger than the decline in dollar value, since prices have increased considerably during the war period. According to Dun and Bradstreet, Incorporated, no business failures were reported in the Eleventh Federal Reserve District during the month of April, and only one such failure has been reported during the first four months of this year. AGRICULTURE Excessive rains continued during April over most of the eastern half of the district, further delaying necessary spring field work which is behind schedule for the district as a whole, although more favorable weather during the first half of May permitted considerable progress in all areas. Rainfall in midMay over the northern and eastern areas, while temporarily retarding field work, was generally beneficial to growing crops, but some fields in the lowlands are still too wet to work. In a considerable part of the western half of the district, continued dry weather, especially in northwestern and western areas, further threatened the wheat crop; and in many western and southwestern counties additional moisture is needed for both land preparation and growing crops. Considerable hail damage was reported from many sections of Texas, oth~r than the High Plains and far western areas. Range conditions are favorable except in local areas, with cattle and sheep in good condition and moving to market in volume. The May 1 estimate of the 1945 Texas wheat crop, as reported by the Department of Agriculture, is now placed at 56,562,000 bushels, as compared with an indicated yield of 75,420,000 bushels on April 1, representing a decline during the month of about 19,000,000 bushels. Adverse weather during April, with excessive rainfall in north-central wheat districts, freezes in the southern counties of the High Plains, and continued dry weather in the heavy producing areas of the northern High Plains, caused heavier damage than had been anticipated and accounted for the sharp reduction in the over-all forecast for the State. The indicated yield on May 1 was 12.5 bushels per acre, as compared with 15.0 bushels a month earlier and an actual yield of 19.0 bushels in 1944. Although the indicated production of 56,562,000 bushels is nearly double the 10-year (1934-1943) average of 30,377,000 bushels, it represents a decline of approximately 25 per cent from last year's record crop of 74,746,000 bushels . Some wheat acreage in the Low Rolling Plains is being grazed or plowed under; and total abandonment is now indicated at 10 per cent of seeded acreage, leaving 4,028,000 acres for harvest this year, as compared with 3,934,000 acres in 1944 and 2,954,000 acres for the 10-year average. Stocks of wheat at interior Texas mills on April 1, 1945 were estimated by the Department of Agriculture at 7,520,000 bushels, as compared with 1,305,000 bushels a year earlier and 4,381,000 bushels for the 9-year (1934-1943) average. Farm stocks of wheat in Texas on April 1 This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW were estimated at 5,980,000 bushels, as compared with 16,440,000 bushels held on January 1, 1945, and 2,364,000 bushels held on April 1 a year ago. Combined interior mill and farm stocks on April 1 totaled 13,500,000 bushels, indicating a disappearance during the quarter of about 13,500,000 bushels, as compared with approximately 10,500,000 bushels in the same period last year and an average of about 3,225,000 bushels during the preceding nine years. Corn planting has been irregular in southern and central counties, and condition of growing crops in these areas is only fair. Much of the acreage intended for corn in the important north-central and eastern areas had not been planted by the middle of May, and considerable abandonment is expected. Cotton planting, which had been delayed by adverse weather conditions in April, made good progress early in May in northern black land and northeastern counties but had not been started in the High Plains due to the moisture deficiency. Some replanting has been necessary in south-central, central and southern counties, but early cotton is being chopped in the south; squares arc reported in the Coastal Bend area, and some cotton is blooming in the Lower Valley, with insect activity in evidence. Planting of such crops as rice, peanuts and sorghums is well advanced, and alfalfa is being cut in western and some eastern counties. Heavy rains early in the season retarded planting and harvesting operations in the commercial vegetable areas in April, but good weather developed in May and fields are being actively worked and are recovering to some extent from unfavorable conditions caused by excessive moisture. While the rains replenished irrigation water supplies and were beneficial to the Rio Grande Valley tomato crop and south Texas cucumber crop, they were harmful in the late spring onion, potato and tomato areas. Considerable insect damage is reported in the early cantaloupe and watermelon areas, but the green corn crop improved both in the irrigated districts of the Lower Valley and in other early areas. With the exception of the extreme northwestern counties, fruit and nut prospects continued good. Peach production was indicated on May 1 at 2,394,000 bushels, as compared with 1,517,000 bushels last year and 1,567,000 bushels for the 10-year average. Production of Texas grapefruit during the 1944-45 season is now estimated at 21,800,000 boxes, representing increases of about 4 per cent over earlier estimates and of 23 per cent above the record crop harvested last season. The estimated orange production for the current season indicates a record harvest of 4,000,000 boxes, with favorable prospects for the 1945-1946 crop. Despite the fact that harvest of the Texas grapefruit crop of the 1944-1945 season is practically over, the Office of Price Administration on May 4 changed the basing point on white Texas grapefruit from Homestead, Florida, to Weslaco, Texas, for the remainder of the season, in order to permit shipments into northeastern areas without excessive freight penalties for the purpose of offsetting in part the deficiency in Florida grapefruit caused by the hurricane damage earlier in the season. Carlot shipments have continued in volume, and total movements through May 19 were abollt 33 per cent above those for the entire preceding season. CASH FARM INCOMF. (Thousnnd, of dollars) ~ ~'ebrunry 1945 'I'oL,1 reeeipls----~Rcccipl' from- Februnry Februnry Jnn. 1 to Feb . 28 Crops Livestock" 19<15 1944 1915 1944 Arizona................ . 0,116 2,491 8,607 8,492 21,300 21,~~~ Loui.iona .... .... . .. ,. .. . 7,358 3,49a 10,851 11,445 20,382 30'931 New Mexieo............. 3,560 1,715 5,275 4,373 12,169 9'-39 Oklnhoma ........... ,... 11,204 17,456 28,660 21,709 01 ,762 48'~62 Texas..... . . ...... ...... 46,650 31,a05 78,045 67,954 156,479 15Y, Total......... 74,888 50,550 131,438 113,973 281,101 'Includes rcceipts from the RUle of Iivestoek and livestock products. SOURCE: United Stales Department of Agriculture. 208.2To LIVESTOCK RECEIPT8-(Number) ~FortW"rth--~- April 1045 Cattle .................. . 127,483 Cnlves . ................ . 18,008 42,044 170,242 M~!'p.·:: ::::::::: ::::::: April 1041 86,813 10,187 112,565 108,332 March 1045 56,333 22,0 17 47,007 05,813 April 1045 26,328 10,569 6,203 43,354 San Antonio--; April MlITc 1944 1045 24,056 20,U~ 21,354 13, 81 13,071 7,1 10,073 22,8i1 COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundred weight) Sau Antonio ----"'h - - - F o r t Worth,---~April Marc April March April April 1044 1045 1045 1045 1945 1044 S14.50 $15. 25 S15.75 $10.25 Beef sleers ..... ......... . S10.50 S15.50 14.00 14.50 14.00 Stocker steers .... . . .... . . 14.50 15.00 16.50 16.50 15.50 Heifers and yearlinge ..... . 12.50 12.75 13.00 12.50 Butohcr COW" ........... . 12.00 l::~ 14.50 14.50 15.00 14 .50 Cnlvcs ................. . iU~ 14.55 14 .55 \4 .55 14 .55 13.65 Hogs .................. . 13.65 15.00 14.50 10.00 15.75 15.00 L..mbs .... , ......... ... . 'ids COTTONSEED AND COTTONSEED PRODUCTS ~--- Texa, United States----August 1 to April 30 August I to April 30 'l'his senson Last ~cnson This Henson Last season Cottonseed reecivod at mills 031,170 005,481 4,253 ,901 3,880, 185 (tons) ... ..... ............ . 3,773,887 3,601,255 830,455 802,821 Cotton,eed crushed (tons) .... . Cottonseed on hand ApTlI 30 286,706 591,620 132,361 57,320 (tons) .................... . Production of produets: 1,152,13 1 1,109,147 268,578 254,020 Crude oil (thousnnd Ibs.) ... . 1712,526 1,732,321 424,186 302,775 Cake and menl (toilS) ..... . 'S63,30 1 873,766 210,930 Hl~1s (tons) ..... ......... . 103,387 1.102,558 1,104,828 Linters (runniug bales) ..... . 253,332 267,076 Stoeks on hand April 30: 24,375 29,860 Crude oil (thousand Ibs.). . . . 8,964 10,724 59,205 104,345 15,270 Cnke and meal (tons). . . . . . . 26,807 25,711 06,035 4,202 Uulls (tons) . . . ... ......... 21,401 216,063 Lintere (running bales).. . . . . 10,528 70,855 58,979 SOURCE: United States Burenu of Census. DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(Bales) April April Mareh August 1 to AI"i130 1945 1044 1945 'I'h;" season Lnet seasen Consumption at: lIi,282 15,533 17,041 141,808 !li4,0 ID 'I'c""" mill•..... ......... 760,678 775,017 857,603 7,280,11 1 7,581,333 United States mills .. . ... . U. S. stoeks-end of mOllth: In consuming ostablO 't~.. . 2,187,016 2,22 1,530 Public Btg. '" eompros.~cs ... 11,025,514 10,272,200 ...... . . during March was estimated at 11,800,000 chicks, as compar~ with 13,300,000 in March, 1944, and the record high of 15,' 985,000 during March, 1943. Range feeds and past~re grasses continued to make season; improvements throughout the district as a whole during ~Pl1l although some counties of the High Plains, western countlCS 0 1 the Edwards Plateau, a~d parts of ~he ~rans-Pccos C?untrf all\i of southern New MeXICO were still w1thout effect1ve ra1n£a needed to revive range vegetation and to replenish stock wa ceJ supplies. The condition of Texas ranges on May 1, at 88 p~ cent, increased 1 point during April and was 6 points above cI.i 20-year (1924-1943) average for that date. Cattle made g()O" gains and were generally in good flesh with a good calf ccof Production of eggs during April in Texas was estimated at reported in all areas, and the May 1 condition of 86 t:>er cent £~ 436,000,000, a decline of 9 per cent from the record of 480,- Texas cattle was slightly above that a month earher and l 000,000 eggs produced in April a year earlier. On the other 20-year average. Sheep and lambs have made good ~ai11S, and . ~ condition of 90 per cent on May 1 represented a gam of 3 POIll hand, 'both the number of layers on farms and eggs laid per during the month and was 5 points above the 20-year avera~; 100 hens continue at levels well above any pre-war year. The A much better than average lamb crop is reported from "! , current meat situation has caused an exceptionally strong de- tually all areas and, despite delays occasioned by frequent ral~: mand for baby chicks and on April 1 was greater than the ability and cool weather, shearing is under way in most sections. :Ma~\ of commercial hatcheries to supply, cue largely to the shortage ketings of early lambs, yearlings and sheep were larger in Aptl of satisfactory hatching eggs. The output of Texas hatcheries than a year ago. d MONTHLY BUSINESS REVIEW During April, total receipts of cattle, calves, hogs and sheep at the Fort Worth and San Antonio markets increased about 62 per cent Over those in the previous month and were 12. per cent more than those in April a year earlier. Despite a declll1e of 58 ;cr cent in hog marketings, total receipts of livestock at the two narkets for the first four months of 1945 exceeded those for the same period last year by about 2 per cent. Prices received in April by Texas farmers, as reported by the Department of Agriculture showed moderate gains for grain srrghu ms , Irish potatoes, sw~et potatoes, beef cattle, veal calves, leep, c!lickens, eggs, wool, and citrus fruits. On the other .and, sltght seasonal declines were indicated for oats, barley, n~~, COtton, cottonseed, peanuts, butterfat, lambs and all hay, W lile prices for such products as wheat, corn, cowpeas, hogs ~~~ butter r~mained at about the same level as in March. P.rices meat anunals and most livestock products were conSlderably higher than those in April last year, but most farm products Were at a lower level. h FINANCE haJh~ reserve bala.nces ?f member ban~s in this dist~ict, which rIsen substantially 111 March rema111ed at the higher level . 111 A ~n'1 and then increased sharply ' in the first hal£ of May, reaching an all-time peak on May 15 at $680,000,000. Average ~~erve ~alances during the first half of May totaled $652,000,000, wluch Was $20,000,000 above the April average and $13 0,~,OOO above that in May last year. As is customary during ~eno~s between war loan drives, when reserve-exempt war loan ep.oSltS of the Treasury are being converted into private depOSIt S h' l ' . b k w IC ~ reqUire reserves, the reqUired reserves of member an shave II1creased sharply since the first of the year and excess teserves have shown a substantial decline. On May 15, War oan deposits at banks in this district totaled $208,000,000, as compared with $520,000,000 at the beginning of the year. TI.le circulation of Federal Reserve notes of this bank has ctntmued to expand during the current year but at a much ~~wer rate than in the preceding two years. Total circulation on 006 ~5 amounted to $565,000,000, which was about $7,000,gher than a month earlier and '$116,000,000 above that a year ago. d' Tl~e gross deposits at weekly reporting member banks in this Is~nCt, after having declined sharply in January, have shown ~~ ~r{~gular upward trend since that time. Despite a net decline It d,20 0 ,000 between April 11 and May 9, the total on the / ter ate was still about $38,000,000 above the low point in I anu~ry. ,During the past three months Government deposits l~ve echned sharply, reflecting Treasury withdrawals from war an accounts, but all other deposits have increased. ' .1l1g 0 f 1945, the loans of these banks h ave fol!Since th e b.eg1l1n oW d ?n Irregular downward trend representing in large ~It t seasonal liquidation of commercial, industrial, and agriu tura loans, and the repayment of 101ns secured hy Government sec '. D . unties. uring the four weeks ended May 9, there was ~~llchas,~ of $2,900,000 in loans to brokers and dealers and in in ~t er loans, but this increase was largely offset by declines amOtle~ types of loans. On May 15, total loans of these banks, ountll?g to $407,000,000, were $76,000,000 greater than a ye ar ear ler. hi pr D~Jinf the past four weeks, the reporting banks, in order to h sel~vvi e . nds to meet deposit withdrawals, reduced their re- Jnc cs ''':It the Federal Reserve Bank by $6,000,000, their bal~oc~s. ~lt\correspondents by $3,000,000, and their holdings of the'1rn~leid' y $3,200,000. These banks continued to liquidate secu .? lUgs of Treasury bills and to add to holdings of other CIties. 8 INDUSTRY The termination of the war in Europe is expected to bring about substantial readjustments in the economy of the district, as well as the nation, within a reasonable period. The volume of production cutbacks is still uncertain, but they are expected to be in large volume as soon as requirements can be more definitely estimated. The cutbacks will be of three kinds, all of which will involve cancellation of advance orders for raw materials: (1) reduction or cancellation of contracts on which production has not yet started, (2) runoff of contracts without replacement orders, and (3) cancellation of work now in process. Substantial cutbacks, largely of the first and second kinds, have already been made in aircraft, combat and cargo ships, heavy artillery, and certain types of ammunition; and it is probable that many other products will be affected in the near future. In this district, reports have indicated that in recent months some prime contractors, chiefly in aircraft and shipbuilding, have not been renewing contracts with subcontractors as existing contracts were completed. Although some of the aircraft companies have already shifted to products that will be used in the Pacific war, some reductions in personnel are being made. Early in May, some cutbacks in ordnance were announced. It is possible, however, that the southwest may not experience as drastic cutbacks in the immediate future as some other sections of the country, in view of the fact that the products of some industries, such as petroleum, rubber, carbon black, textiles, chemicals and lumber, are likely to be in heavy demand throughout the Pacific phase of the war. Reconversion preparations are proceeding rapidly, and the policies covering the period between V -E Day and V -J Day have been set in motion by the War Production Board, suggesting a transition period extending progressively through the remainder of 1945 . Effective July 1, 1945, manufacturers of civilian durable goods will be permitted to enter orders for steel, copper and aluminum without Controlled Materials Plan allotments where delivery can be made without interference with previously authorized C.M.P. orders. The War Production Board warns, however, that permission to place unrated orders does not guarantee delivery of the material, and even though manufacturing controls have been lifted to permit manufacture of substantial quantities of household appliances such as vacuum cleaners, washing machines, sewing machines and electric toasters, it may be some months before such items appear on the market in appreciable quantities. Moreover, due to continued shortages of such important items as textiles, rubber, lumber, tin and many others, manufacturing controls will be continued, at least for the present, on such items as trucks, passenger automobiles, domestic mechanical refrigerators, electric ranges and cooking appliances, farm machinery, wood and steel furniture, and radios. The general over-all plan of the War Production Board is either to relax or to revoke completely controls covering output of civilian goods as rapidly as war production cutbacks release resources of materials, manpower and facilities. It is emphasized, however, that the removal of W.P.B. controls in no way affects the validity of the continuing controls of other war agencies. W.P.B. officials further point out that in resuming or expanding civilian production, manufacturers remain subject to all applicable regulations of the Office of Price Administration, the War Manpower Commission, and other Federal agencies. The value of construction contracts awarded in this district during April, amounting to $31,402,000, declined 17 per cent from the relatively high awards of $38,000,000 in March, but was more than double that for April, 1944. Although nonresidential construction in April showed a decline of 37 per cent from t he preceding month, this decrease was partially offset by 4. MONTHLY BUSINESS REVIEW marked increases in awards for residential, public works and utility construction. Moreover, total construction awards in this district for the first four months of the year, amounting to $102,476,000, were 69 per cent above the total of $60,684,000 in the same period a year earlier. Lumber continues in tight supply; and as direct military demands for crating and shipping purposes will increase greatly during the period of redeployment of men and materials from the European theatre to the Pacific, the War Production Board will continue to exercise rigid controls until lumber production is materially increased. On the other hand, the supply of steel, copper, aluminum and other construction materials should become more plentiful before the end of the year. Production of 576,000 barrels of Portland cement at Texas mills during March exceeded that in February by 100,000 barrels and was the largest output since September, 1944. Shipments of 600,000 barrels of cement during March exceeded production and caused stocks to decline at the end of the month to about 1,000,000 barrels, or less than two months' supply at the current rate of shipments. Production of crude petroleum in the Eleventh District during April reached an all-time high with a daily average rate of 2,346,000 barrels, representing an increase of 12 per cent over that in April a year earlier. Production outside this district remained at about the previous month's level, although operators on the West Coast had been requested to materially increase output to partially relieve the transportation bottleneck to that area. During the period of shifting military forces to the Pacific the over-all military demand for petroleum products will decline, but the current high production rates are to be maintained to accumulate supplies needed for intensified activity in the Pacific at a later period and to increase allotments for civilian use as soon as circumstances will permit. The Petroleum Administrator's May certification for Texas calls for the continued high production rate of 2,170,000 barrels of crude oil daily, with a production of 483,000 barrels per day of sour crude requested from west Texas fields. Reflecting the seasonal trend, drilling activity in the United States and in the Eleventh District increased further in April, with daily completions representing approximately the rate necessary to reach the 1945 goal of 27,000 wells requested by the Petroleum Administrator for War. Daily well completions during April for the district as a whole averaged 24 wells, as compared with a daily average of 20 wells during the first quarter of 1945. Although Texas showed the greatest gain in the number of completions throughout the United States, with the greatest activity being concentrated in west, north and south Texas fields, most of the other oil producing areas of the Eleventh District also showed gains. As the necessary steel has been set aside to provide drilling equipment and as the most favorable months for drilling are ahead, it is expected that drilling activity will materially increase during the summer months. Military and civilian requirements for cotton textiles are larger than at any time during the war and will greatly increase with the transfer of troops to the Pacific theatre, where lightweight cotton uniforms are used. Despite continued efforts of the War Production Board and other Government agencies to increase mill output, the general production trend since April, 1942 has been downward. Mill consumption of cotton at United States textile mills during April totaled 770,000 bales, a decline of 10 per cent from the 858,000 bales consumed in March and fractionally less than the consumption in April a year earlier. Cotton consumption for the first nine months of the 1944-1945 season totaled 7,286,000 bales, as compared with 7,581,000 bales for the same period last season, indicating a decline of 4 per cent. Manpower shortages due to the relatively low wage scales prevailing in the textile industry are given as the chief cause for declining production rates. As textiles have been declared one of the most pressing war needs, the War Production Board announced on May 8 that, in an effort to increase textile production sufficiently to meet the acute shortages, large segments of the textile industry had been given productionurgency rating as munitions producers. The present goal is to increase output by at least 18 per cent, which would bring production back to 1942 and 1943 levels. MONTHLY BUSINESS REVIEW JUNE I, 1945 NATIONAL SUMMARY OF BUSINESS CONDITIONS (Complied by tho Board of Governors of tbe Federal Reserve System) INDUSTRIAL PRODUCTION I.I.VOlUMI'UIOt~,:!:!~D,ln)'3g.IOO'OfIITOT4L '<'260 r240 c--Rd,:ff: r\·rI _ I'-JOTAL 200 - 20 nlA=~m~N V 1'' +1 ''''',...."" .~I -I-- ~AHUf"AC'_i,; 180 I 160 100 J rL / '-- ~ 140 120 I'OlNlt lNT OTAL 40 f- .1.. 1940 1942 r I I 40 ~OTl1l" RAOLE 20 FffHftj 80 1944 1940 19U 80 60 t---'l eJ 11 . I00 20 o 19 44 Federal Rese . d exes. ~roups are expressed in terms of poinc: v.e latest shown a Ifn (A,e ~otal lOde)(. Montbly figures, re or prll, 1945. "I _ B a ~ 42 1944 1940 1942 1944 ased on De Wages and salarfar~menr of.<;:ommerce est im ates. ures raised to es lOclude milItary pay. Montbly figMarcil, 1945. annual rates, latest shown are for OOST OF LIVING Output ~nd employment at factories decliped somewhat in April. Dep~rtmellt store sales showed decline and wholesale commodity prices continued to advance sligh tl y. ~ m~rked INDUSTRIAL PRODUCTION Industrial production, which had advanced earlier this year, declined in April to the same general level that prevailed during the last half of 1944. The Board's seasonally adjusted index was 231 per cent of the 19 35-39 average as compared with 2H in the first quarter. Activity in the machinery ~nd transportation equipment industries declined about 3 per cent in April, reflecting curtailed munitions production; the largest p~rt of the dtcrease w~s accounted for by a further reduction in operations at shipyards. As a result of the decline in shipbuilding during the last 12 months, activity in the transportation equipment industries in April was 10 per cent below a year ago. Steel production was maint~ined at the March level as a declin e in output at open hearth furnaces was offset by a further rise in steel produced in electric furnaces. Production of nonferrous metals, which had increased somew hat during the first quarter of this year, showed little change ill April. Output of stone, clay, ~nd glass products w~s maintained at the first quarter level, while lumber production continued to decline. Production of textiles and manufactured food products declined slightly in April and was at the level of a year ago. COtton consumption showed a decrease of 5 per cent from March but rayon shipments rose further to a record level. Activity at meatp~cking establishments, which had shown little change during the first quarter after allowing for seasonal fluctuations, declined 10 per cent in April. Output of rubber products decrt":lsed as the shortage of c~rbon black continued to limit prod uction despite measures to stretch available supplies. Production of most other nondurable goods showed little change. Bituminous coal production recovered in the latter part of April from a substantial decline e~r1ier in the month due to work interruptions accompanying contract negotiations. Output for the month was S per cent below that of March and in the first two weeks of May continued at this lower r~te. Anthracite production in April waS 14 per cent higher than in the preceding month hut declined sharply in May prior to agreement on a new wage contract on May 19. Output of crud~ petroleum has been maintained at record levels and iron are production has shown an exceptionally large increase this spring due to early opening of the navigation season on the Great Lakes. DISTRIBUTION Department store sales declined sharply in April and the Board's se",onally adjusted index w~s 181 pel' cent of the 193 S-39 average as compared with an average of 211 in the first quarter and with 172 in April, 1944. Sales in the first half of May were only slightly larger than in the corresponding period a year ago. Owing to unseasonably warm we~ther and expectations of shortages, much spring shopping, which would usua lly be done in April and May, occurred this year in February and March. In mid-April many stores were closed immediately following the death of President Roosevelt. Also, in particular cities part of the recent decrease in sales ~ppears to have been associated with actual or anticipated income declines resulting from cutbacks in war production. Freight carloadings of most manufactured products were maintained ~t a high level in April and the early part of May and were above the same period a year ago. Shipments of coal ~nd lumber, however, were in sma ller volume, reflecting reductions in output of these commodities. COMMODITY PRICES 90 80,-- 1';'3~7~1~.~38~~'.~3;.~::~~~---l--__~__1-__J80 B 1940 1941 1942 1943 1944 1945 ureau of Lab S " ,. each calendar Or tatlStlcs Indexes. Last month in monthly thereaft~uart~r through September, 1940, ate for April, 194;: MId-month figures, latest shown MEMBER BANK ;~'"'''LL''' RESERVES AND RELATED ITEMS --r---t---+---+---~~~--~ .. 20 1944 194 5 figures, latest sbown arc for May 23, \Vho!esale prices of farm products advanced in April and then showed little change in the first three weeks of May. Maximum prices for coal, steel products, and various other industrial commodities have been raised somewhat in recent weeks. Retail price changes for foods and other commodities apparently have continued to be small 111 April and the early part of May. BANK CREDIT During the four wecks ended May 16 total deposit and currency holdings of businesses and individuals increased by nearly 3 billion dollars. Increases of about 300 million in currency and of over 400 million in reserves required to be held against expanding deposits at member banks resulted in an increased demand for reserve funds by member b~nk s . This demand was supplied largely by an increase of about S00 millions of dollars in Reserve Bank holdings of Government securities, mostly bills and certificates, and in part by a temporary decline in Treasury deposits at the Reserve Banks. Excess reserves rose slightly to around a billion dollars. In the five months between war loan drives, December 20 to May 16, reporting banks in 101 cities reduced their holdings of short-term Government sec urities by around 2.3 billion dollars in order to maintain adequate reserve balances. But during the same period bond holdings of these banks were increased by 1.6 billion dollars. Loans to brokers and dealers for purchasing or carryillg Government secu rities, which had declined in early April to a level comparable with that rcached before the Sixth War Loan Drive, rose substantially during the three weeks immediately preceding the Seventh \Var Loan Drive. Commercial loans declined during the interdrive period, reaching a level about SOO million dollars lower than that prevailing just before the Sixth War Loan Drive. MONTHLY BUSINESS REVIEW CONDITION OF THE FEDERAL RESERVE BANK (Thousands of doll.rs) May 15, May 15, 1045 1044 Tot.1 cash rcscrvos ........ ......... .. . .......... . $554,513 S572,040 Discounts for member b.nks ........•......... . .•.. 200 250 Industrial advances .................... ... ....... . Nono 2 U. S. Govcrnmont scouritios ...................... . 725,6R5 483,645 Total onrning IlSS<lts . .. ....... .... ....... .... .... . 725,805 483,807 Member blinks reserve deposits ........ ... .. . ..... . 680,235 535,101 Federal Resorvo Notos in actual oiroulation ......... . 565,363 447,485 April 15, 1045 $55~~~~ Nono 609,005 600,005 644,547 556,066 CONDITION STATISTICS OF WEEKLY REPORTING ME~mER BANKS IN LEADING CITIES (Thousands of dollars) May 0, May 10, Aprilll, 1045 1944 1045 Total loans .nd investmonts . .... .... ..... ......... SI,673,I86 $1,368,206 $1,676.312 Totalloans. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 400,071 331.244 400,407 Commorei.I, industrial, ond oJ!rieulturnllonns... . 267,427 260,225 236.100 5,057 Loons to brokers and dealers In securities.... . .. . 2.052 4.702 Other lonns for purchnsillg or carrying soeuritios. . 40,866 27,324 50.527 Re.1 estoto lo.ns. . . . .. .. . . . . .. .. . . . . . . .. . . . .. 22,440 10,713 22,366 Lonns to banks...... .. . . . . .. .. .. . .. . .. .. . .. . . 154 02 154 All oth~r lo.ns................. .............. 61,118 45.057 50.433 Total investments.............................. 1,200,165 1,037,052 1,260,005 U. S. Trensury bills...................... ..... 58,030 88.330 71.892 U. S. Treasury certifiontos of indobtedness....... 300,176 254.213 388.445 U. S. Trcnsury notos.......................... 220,732 219,816 100,163 U. S. Govcrnmont bonde...................... 530,341 410.064 533,231 Obligations gunronteed by United States Gov't.. 0,740 30.031 0,081 Other securities.......... .. . .... ....... . ..... 48,137 45,342 40,540 Reserves with Federnl Rcscrvo Bank. . . . . . . . . . . . . . . . 340,840 201,300 355,825 Balances with domestic b.nks....... .. . . . . . •.. .. . . . 222,527 100.693 225,485 Dem3nd dejlOSits-ndjusted°. . . . . .. . .. . .. ..• . . . . .. 1,274,630 1.073,578 1,252,069 Time deposIts... . . . . .. . . . . . . .. . . . .. . .. . . .... .. .. . 243,401 178,747 238,744 Unitod Statos Government doposits.... .. . . .. . . . . . . . 135.120 136,256 177,873 Intorba!,k deposits..... . . .. . . . . . . . . .. . . . . . . . . . . . . . 51~1255 41~~~! 51~~~~ BorrOWings from Federal Reservo B.nk. ........... . Nono 'Includos all demnnd deposits other thnn interbank and United Statos Governmont, less ensh itoms reportod lIS on hand or in process of collection. DEBITS TO INDMDUAL ACCOUNTS (Thousonds of doll.rs) April April Pctg.eh.ngo 1045 1944 over year Abilene. . . .. .. .. .. • .. ... S 15.724 $ 16.738 -6 Am.rillo ................ 45,481 39.023 +15 Austin .................. 66,252 -24 86.977 Bonumollt .. . ............ 52,777 54,501 -3 Corpus Christi. .......... 46,961 51.984 +11 Corsionnll ............... 5,840 5.830 + t D.llas .................. 645,684 500,363 +7 EIPaso ................. 56.351 ' 61.220 -8 102,011 Fort Worth ....... ....... 185,423 +4 G.lveston ............... 40.865 41.432 - I Houston ............ ..... 664,337 500.232 +13 Laredo .................. 12.223 11.458 +7 25,874 Lubbock ................ 28.667 +11 Monroe, La.............. 16,322 -2 15.060 Port Arthur ............. 22,237 23.058 +4 Roswell, N. M............ 8.060 7,685 +13 S.n AnRelo ............ .. 15.374 12,709 +21 San Antonio ......... . ... 147.452 142,357 +4 Shreveport, La ... , ....... 73,200 84.792 +16 20,301 17,457 Texnrknnu' .... .... . . ... . +17 Tucson, Anz .. ........... 82,760 27.735 +18 20,241 23.627 +17 .. 26,003 24.844 Wicbita Falls ....... . : 23,885 20.120 r,,~~~::::::::::::: : .. :j:2~ .. March 1945 19.740 51.084 07.966 61,808 57.713 6,746 588.680 06.170 224.125 50,266 634,303 12,604 33,3~9 18,073 26.410 0,444 16.008 104. 177 84,828 23,260 85,205 24,207 20,410 30,262 Petg.ohant!:' over mont -20 -11 -32 -15 -10 - 13 -7 -15 -14 -10 - 11 -3 -14 -16 -13 -8 -4 -10 -t -12 -7 -2 -11 -4 Total-24 cities .. ........ $2,105,458 $1,074,304 + 7 $2.362,002 -11 °Includos the figures of two banks in Texarknnn. Arkansntl, 10ont<Jd in tho Eighth District. tChange less th.n one·half of one pcr cent. GROSS DEMAND AND TIME DEPOSITS OF ME~ER BANKS (Avernge daily figures-Thousands of dollars) Reserve city b.nks Country b.nks Combined total Gross dem.nd April 1943 ....... . . . $2,718.087 April 1044 .......... 3,202.252 December 1044 .....• . ... 4,024.828 J.nu.ry 1045 .......... 4.104,746 Febru.ry 1045 .......... 4,016.752 1045 .......... 4,050,000 M.rch April 1045 .......... 4.030,267 Gross Gross Time demalld Time dcmand Timo $234,701 $1,182,055 $188,031 $1,235,132 S 00.760 284.539 1,700.275 175.621 1.582,977 108,018 338.089 2,066,046 213,060 1,057,882 125,620 345,591 2,000,671 218.338 2.014,075 127.253 354,580 2,020.060 224.548 1,000.002 130.038 307,380 2.045,585 232,600 2.004,415 134,780 380,585 2,030,420 242.778 2,008,838 137.807 WHOLESALE AND RETAIL 'rRADE STATISTICS , - - - - - - -'Porcent.ge changp in: • ,------Net snlos-----v---Stoeks f---. Number April 1045 from J.n. 1 to April 1045 from of April March Apr. 30, 1045 April M.rch Retail tr.de: firms 1044 1045 from 1044 1044 1045 Department storos: Tot.1 11th Dist .... . 48 + 2 -21 +15 + 6 + q Dallas .......... .. 7 + 0 -22 +10 +11 + 7 Fort Worth ... ... .. 4 + 5 -24 +17 -15 - 1 Houston ..... ... .. . 7 - 7 -24 + 8 + 3 +14 San Antonio ... ... . 5 +11 -18 +23 Shrevcpnrt, J..... . . . a - R -25 +11 Other cities ....... . 22 + 2 -18 +13 - 3 Retail furniture: Total 11th Dist.. .. . 68 -11 +3 -1 +5 DallllS ........... . -1 o -6 -2 +31 Houston .......... . 7 -0 +9 Port Arthur ..... . . 4 -8 -5 +'7 S.n Antoaio .. .... . 3 -10 +15 Wichita Falls ..... . 3 -20 +14 Independo ,t storos:· Arizona .......... . 142 -2 + .8 Now Moxieo .... .. . 115 -4 +11 Oklahoma ........ . 350 -16 +15 Texas ..........• . . 044 -18 +12 Wholesale trode:o Automotive supplios 1 +30 -15 Drugs.. .. .. .. .. .. . 4 + 3 - 0 Groceries.......... 20 - 7 - 7 -18 ':':'2 H.rdware. . ....... 14 +13 - 4 +12 + 5 + 6 °Compiled by United States Bureau of Consus (wholosn1e trode figure., prelimin.ry) . fStocks .t end of month. tCh.nge less th.n one-h3lf of one per cent. +'" ':':' f ':':'f INDEXES OF DEPARTMENT STORE SALES AND STOCKS D.ily .veroge snIcs -(1035·1030-100) Un.djust<Jdtt Adjusted April March Fcbru.ry April M.roh February 1045 1945 1045 1044 1045 1945 District ... .. 228 269 230 228 240 283 284 D.llas ...... 225 267 248 214 250 276 260 Houston ..... 210 255 231 226 23a 274 206 184~ Stocks-(1023-1925 ~ 100) ~---Unndjustodtt'---------Adiustodl----- April M.rch Fcburnry 1945 1045 1D45 District . . . . . 111 106 07 ttUn.djusted for scasoll.1 variotion. rer.~~g Bonumont ............... D.Uas .................. EI Paso ................. Fort 1V0rth .............. Galvoslon ............... Houston ................. Lubbock ................ Port Arthur ............. San Antonio ............. Shreveport, La .. ...•. . ... lV.eo ................... Wichita F.IIs ............ All other ................ 3 8 2 3 4 0 2 2 5 3 3 3 58 Total. ......... 105 Percen ta~e change in savings eposits from Number of Amount of savings April 30, March 31. snvinf!S deposIts depositors 1044 1945 12,029 $ 6,004,105 +27.1 + 1.0 105,051 55,820.072 +42.4 + 2.7 25.356 17.138.358 +42.0 + 2.0 37.506 25.832,288 :j:a9.8 + 2.2 21,246 10,800,800 20.0 + 1.6 88,080 55.075,031 +20.0 + 2.4 801 509.842 oo + 4.8 5.622 4,500,415 25.4 + 2.0 , 32,444 34,272.700 36.4 + 3 .0 31.014 21.040,203 37.2 + 3.7 8,712 7,040.035 +33.0 + 3.8 6,705 4,172,471 +15.2 + .6 56.403 41,810.508 +31.7 + 2 .8 r 432,559 $200,078,833 +34 .8 + 2.7 April 1044 99 April 1045 107 March Fcbruary 1045 1945 103 101 April 1944 06 CRUDE OIL PRODUCTION-(Bnrrcls) April 1045 Incronee or dccranse in d.ily avernge production from Tot:ll Dnily nVR. production production April 1044 M.rch 1045 North Tcxas................. 7,207.800 240,200 + 5,185 + 3,008 West Texas.................. 14,696,600 489.887 +115,152 +13,755 Enst Texas. .... .......•..... 15.649,200 521.040 + 31.908 - 7.473 SOllth Tcxas. .. ...... . . .. .. . . 10.591.500 353.050 + 50,585 + 1.308 Texns CalISta!..... .. .. . . . .. .. 16,053.600 505.120 + 46.452 + 808 Total Toxas.. .... New Mcxieo ... ...... ,.. ..... North Louisiana.............. 05.008.700 3,141,500 2,133,050 2,160,057 104.716 71.102 +258,342 7,772 4,708 +11,586 + 834 + 805 Tot. 1 District. .... 70,373.250 2.345.775 +245,777 SOURCE: Estim.tod from Amerionn Pctroleum Institute weekly rcports. +13.225 VALUE OF CONSTRUCTION CONTRACTS AWARDED (Thousands of dollors) March April April Janu.ry 1 to 1045 1044 1945 1045 Elcventh District-total. . $ 31.402 $ 12,865 $ 38.058 S lO2.476 Residential. . . . . . . . . . . . 3,283 2,815 2,482 7,848 All othcr" ............ 28,110 lO,050 85,570 04.614 United Statos°-tota!.... . 305.708 170,286 828,874 1.012,578 IWidenti.l. . . .. .. .. . . 42,745 37,772 20.043 108,524 All other. . . . . .. . .. .... 353,053 141.514 301,031 904,054 °37 statos cast 01 tho Rocky Mountains. SOURCE: F. IV. Dodge Corporation. SAVINGS DEPOSITS April 30, 1045 Number of April 1044 232 225 233 April 30 1944 $ 00.084 14,371 40.301 652,168 13R.704 518,359 BUILDING PERMITS Pereentagc ehaugo Percentagt valu.tion from J.n.l to Apr. 30.1045 ch.a~e valu.tloD Valuation Apr.1944 Mar.l04S No. V.luation from 1944 $ 19,650 + 50 46 $ +383 51.870 -63 104.187 + 10 322 - 53 580.003 + 02 135.773 +213 - 28 502 +352 070.501 85,027 -16 - 45 630 400.660 + 19 205,340 + 47 - 24 666 704,541 644.012 0 2,520 2.060,080 + 3 40.388 - 75 212 + 85 196,053 - 34 543,000 + 19 4 1.210 1,860,674 + 46 53.652 + 17 249 218.810 -25 :j:135 1.177.776 210 - 77 1,206 7,000.726 +882 133,387 +105 + 18 513 570,481 +263 66,607 + 82 +lO2 203 143,764 +~ 433.30 1 8 3.546 1.742,431 +23 :j: 12 1 150,041 180 826 + 20 717.227 _+ 17 48 57,840 -15 - 76 242 272,705 23,403 3 152 + 16 52 107,530 + April 1045 No. Abilcne .......... Am.rillo ......... Austill. .......... Bonumont ..... . .. Coreus Christi .... D.IIIS ........... ElPaso ......... . Fort Worth .. . .... Galveston ........ Houston .......... Lub~ock ......... Port Arthur ...... San Antonio .. . " . Shreveport. La .... W.eo ............ Wichita Falls ..... 8 78 IS8 154 163 602 58 801 63 388 134 71 S90 215 68 45 ------ Total" ...... 3,527 $3,885.143 :!:~ - - + 32 - 52 13,147 $18.408.205 -+ 13