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MONTHLY
BUSINESS
REVIEW
oft h e
Volume 31

FEDERAL

RESERVE

BANK

Dallas

Dallas, Texas, June 1, 19(6

Number 6

THE 1945 RETAIL CREDIT SURVEY
IN THE ELEVENTH FEDERAL RESERVE DISTRICT
/

The Research Department of the Federal Reserve Bank of Dallas, having completed the tabulation
and summary of data obtained from retail firms in the Eleventh Federal Reserve District in connection
with the Fourth Annual Retail Credit Survey conducted by the Federal Reserve System, here presents
an analysis of significant developments occurring during the past year in the retail trade of the district.
In this survey, covering the year 1945, and, for purposes of comparison, the year 1944, data were
obtained from representative firms in those lines of trade in which the extension of credit to consumers
is normally of sizable volume, namely: automobile dealers, auto tire and accessory stores, department
stores, furniture stores, hardware stores, household appliance stores, jewelry stores, men's clothing stores,
and women's apparel stores.
The survey embraced sales (total, cash, charge, and instalment), accounts receivable, inventories,
and other current balance sheet items of each reporting business establishment. Reports were obtained
from approximately 450 firms located in 23 cities throughout the district, accounting for total net
sales in 1945 of $244,000,000. The reporting firms are fairly well distributed among the several lines of
trade and are located in widely separated geographical areas, although the major portion of the reports
were received from establishments operating in the principal cities of the district.
Since the activities of most of the national chain store outlets are reported in consolidated form to
the Board of Governors of the Federal Reserve System, the sample of business firms covered in the
Eleventh District survey consists essentially of independent stores and of local outlets of chains operating in limited areas. Moreover, because the major purpose of the survey was to study developments
relating to consumer credit in retail trade, all reporting firms are retailers who do some credit business.
Firms selling only for cash were omitted from the sample.

ANNOUNCEMENT
FEDERAL RESERVE BANK OF DALLAS INITIATES RADIO SERIES
The Federal Reserve Bank of Dallas will present a series of weekJy broadcasts entitled
"Your Southwest Business Review" each Saturday evening from 6:15 to 6:30, Central Standard Time, over Radio Station KGKO (570 on your dial). This program will present a review
of current developments in the fields of business, industry, finance, and agriculture as they
affect the Southwest.

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

MONTHLY BUSINESS REVIEW

Total sales. The total of all sales reported for 1945, without reference to separate lines of trade,
represents an increase of 12 per cent over total sales of the same stores in 1944. Likewise, composite
figures of all firms in each type of business show that every reporting line of trade experienced an
increase in sales in 1945, as compared with the previous year, even though, as shown in Table I, some
individual stores in each line experienced decreases. The rate of expansion in total sales during the year
was not so great in the case of automobile dealers, auto tire and accessory stores, jewelry stores, and
men's clothing stores as in the other five lines of trade. For the m ost part, this difference may be attributed to more acute shortages of merchandise in those lines in which the rate of increase in sales was
less rapid. This was especially true of automobile dealers and men's clothing stores. On the other hand,
the more rapid rise in total sales of furniture, hardware, and household appliance stores reflects the
reappearance of some consumer durable goods after the close of the war.
Cash sales. Reflecting the large volume of consumer incomes and of liquid resources held by
individuals, there was a further increase over 1944 of 14 per cent in dollar volume of cash sales for
all lines combined, although the upward trend was not quite so strong as in the preceding year. Cash
sales accounted for approximately 52 per cent of total sales of all reporting stores during 1945, as
compared with 51 per cent during 1944. In most individual lines, the percentage of expansion in cash
sales was as great as, or greater than, in total sales.
TABLE 1. SALES A.t lD STOCKS BY KIND OF BUSINESS Major increases in cash sales ranged from 13 per cent
'
Eleventb Federal Reserve District
for automobile dealers and 16 per cent for men's
Number of fi rms showing
Percentage change
clothing stores to 30 per cent for furniture stores.
_-totalsales-_-::1t145 frorn 1944Total Stocksatclid
No. of
Only auto tire and accessory store~ and hardware
AAI06 ·
of yeart
Kind of business
firme
Incre.'\Ae
Decrease
46
18
8
- 13
Automobile dealers G5
stores showed any falling off in the ratio of cash
Auto tire and actransactions to total sales, and in each of these the
cessory stores ...
29
8
43
25
56
13
1
Department stores. 30
13
1
decline was only one per cent. The greatest increase
1l
1l
Furniture stores ...
45
23
- 2
in the ratio of cash to total sales occurred in men's
Hardware stores . .
22
2
20
15
26
Household appliclothing stores, where cash transactions rose from
41
2
20
ance stores. . . .
20
8
57 per cent of total sales in 1944 to 62 per cent in
12
Jewelry stores. . . .
31
23
8
8
Men's clothing
1945, with a corresponding decline in the percentstores. ... . . . . . . 32
10
7
-44
20
age of charge account sales.
Women's apparel
stores . .. . . . . . . . 33
22
7
8
- 6
·Percentage changes in some cases differ from tbose in accompanying tables because of different number of firms.
tDollnr value figured at cost .

Charge account sales. Charge account sales
showed an increase of 12 per cent in volume for all
reporting lines taken together, but were unchanged
from 1944 in percentage relationship to total sales. In three lines of trade, namely, furniture, jewelry,
and men's clothing stores, there were decreases of varying magnitude in the respective volume of charge
account sales as well as in the ratio of such transa<;:tions to total sales. In h<;>usehold appliance stores,
although the volume of charge sales increased slightly, the ratio to total sales dropped from 37 per
cent in 1944 to 33 per cent in 1945.

TABLE II. BALANCE SHEET ITEMS BY KIND OF BUSINESS
Percentage cbange in amounts reported December 31, 1945, over December 31, 1944
Eleventh Federal Reserve District
Cash and United
Accounts
Bank
States
Accounts
No.
and notes Other
Worki ng
Kind of business
firms deposits securities receivable Stocks t payable· liabilities capita.!
17
Automobile dealers . . . ......... 54
27
18
- lO
- 4
69
8
23
- 10
24
Auto tire and accessory stores . .. 17
21
38
43
28
Department stores ...... ... ... . 27
23
17
14
l1
15
l1
t
2
18
- 2
Furnituro stores . . . . .. . . . . .. ... 44
7
16
- 1
G
24
Hardware stores .. .. .. . . . ..... . 22
27
26
15
102
51
17
16
21
4
Household appliance stores .... .
7
57
101
60
17
22
Jewelry stores . ............... . 30
23
13
- 2
52
23
8
26
Men's clothing stores ......... . 29
-42
- 13
88
15
-5
14
Women's apparel stores . . . . . ... 21
19
- 1
33
-3
8
23
- 9
T otal ...... . .. .. .... . 251
17
27
·Includes trade pay abIes and notes payable to banks.
tDoUar value figures at cost.

Curren t ratio&/!

1945
5.0
3 .4
3 .2
10.3
l1 .3
8.7
4. 5
4.2
3. 6

1944
5.6
3 .3
3.1
10.6
17.6
13 .0
5 .2
3 .8
3.0

4
l1
13
12
tCha!'gc less t han one-half of one per cent.
#Rat1 of current assets to current liabilities.
o

Instalment sales. Despite increases in the dollar volume of instalment sales in six lines of trade
ranging from 4 per cent in hardware stores to 31 per cent in household appliance stores, sharp decline~
in the volume of such sales by automobile dealers, auto tire and accessory stores, and men's clothing
stores brought down combined instalment sales to a negligible percentage increase over 1944. The only

MONTHLY BUSINESS REVIEW

lines in which instalment sales constituted a larger
per cent of total sales in 1945 than in 1944 were
household appliance and jewelry stores, and here
the increase both dollar-wise and percentage-wise
were very slight. Except in furniture, household
appliance, jewelry, and automobile stores, instalment sales constituted insignificant percentages of
total sales, and among these four lines, only furniture maintained an instalment ratio at all comparable with prewar sales patterns.
Receivables. Total year-end receivables on
charge accounts and instalments combined of all
stores repor ting on that item increased 11 per cent
over 1944, while total credit sales for the year were
risin g 10 per cent. This suggests very little
change in the average collection period. There were,
however, some sharp deviations from the over-all
pattern in the case of several individual lines of
trade, as can be seen from Tables II and III.

TABLE III.

SALES BY TYPE OF TRANSACfION AND
BY KIND OF BUSINESS
Eleventh Federal Reserve District
~-Percentage

Kind of bueinesJ

Automobile dealers
Auto tire and accessory stores ...
Department stores.
F urniture stores ...
Hardware stores ..
H ousehold appliance stores . ... .
J ewelry stores ... .
:Men's clothing
stores . . . . ... . .
Women's apparel
stores .. .. ......

No. of
firms

Total
sales

change, 1945 over 1044-Cbarge
Rooount3 Instalment-

Cash

-34

56
43
51
25

8
15
12

-15

4
14
30
14

22
21

15
6

17
7

4
3

31
20

-5

-29

•

14
12
Total. .. . . . 325
' Change less tban on-half of one per cent.
TABLE IV.

•

PERCENTAGE OF CASH AND CREDIT
SALES TO TOTAL SALES
Eleventh F ederal R eserve District
Charge

No. Cash _-accounts~lnstalment ......
firma 1945 1944 1945 1944 1945 1944

Inventories. Year-end inventories showed diKi"d 01 bum . ...
verse trends in relation to those of a year earlier, Automobile dealers .. . . 53 49 46 41 38· 10 16
Auto tire and accessory
4
3
35 36 62 60
there being five lines in which increases were regisstores ........ ...... 56
3
3
54 54 43 43
tered and four lines in which there were decreases. Department stores.. .. .. 51
43
12 13 64 66
24 2 l
Furniture stores .. . ..
2
Percentage-wise, the greatest increases were in auto H ardware stores .. . ... 25 62 63 36 35 2
Housebold appliance
tire and accessory, household appliance, and hardstores........ ...... 22
44 43 33 37 23 20
ware stores, and are attributable to a mild upswing J ewelry stores . . .. . ... 21
60 60 24 26 16 14
62 57 37 42
1
1
M en's elothing stores. . 31
in civilian production in the last quarter of the year. Women's apparel stores 23 58 56 40 41 2
3
Dollar-wise, however, the increases over the low
T otal . .... .. ... 325
52 51 40 40
8
9
stocks at the end of the previous year were not so
. "'.
impressive. The most marked decline occurred in the case of men's clothing stores, where restricted
production of shirts and suits and the heavy demand from discharged servicemen were major factors.
End-of-year financial position. Total current assets of the 251 stores in all lines combined
which reported selected balance sheet items inPERCENTAGE OF CASH, OPEN ACCOUNTS, AND INSTALMENT SALES
TO TOTAL SALES BY KINO OF BUSINESS
creased from $48.2 million in 1944 to $54.1 million
ELEVENTH FEDERAl RESERVE DISTR ICT
in 1945, or 12 per cent. Total current liabilities increased by the same percentage, from $11.7 million
to $13.1 million. Consequently, the combined
... working capital of all stores reporting on these
items rose 12 per cent, and the composite current
r atio of 1944 was unchanged at the end of 1945........ -...., All asset items except stocks registered gains. Total
cash and bank deposits increased 27 per cen t , hold ings of United States securities, 17 per cent, and
accounts receivable, 11 per cent. T otal dollar value
of stocks (at cost) declined 4 per cent. O n the
ez:a INSTAUENT SAl,.ES 'M' liability side, accounts and notes payable increased
11 per cent, and other liabilities, 13 per cen t.
In each of the separate lines of trade there was an increase in total assets, ranging from 7 per cent
for furniture stores to 27 per cent for auto tire and accessory stores. In the case of automobile dealers,
furniture, hardware, household appliance, and jewelry stores, these gains in assets were offset by even
greater percentage increaseli in liabilities. Department stores showed the greatest dollar increase and
men's clothing stores the greatest percentage increase in cash and bank deposits. All lines, with the
STOIIn

>OM

MONTHLY BUSINESS REVIEW

exception of auto tire and accessory stores, enlarged their holdings of Government securities. Accounts
receivable also reached higher totals except in the case of men's clothing stores and women's apparel
stores. Inventories (based on cost) decreased slightly in women's apparel and furniture stores, moderately in the case of automobile dealers, and very sharply in men's clothing stores. Except in the case
of automobile dealers, these declines in stocks were as much the res~lt of above normal buying as of
limited production. From the standpoint of current ratios, hardware and household appliance stores
experienced the greatest declines from the high levels which they had enjoyed the previous year, but
were still in very strong position, ranking above all other lines except furniture stores. Interesting is
the fact that the four lines which showed the lowest current ratios at the end of 1944--namely, auto
tire and accessory, department, men's clothing, and women's apparel stores-gained moderately on
this item in 1945, while the five lines which enjoyed stronger positions the previous year experienced
declines of varying degree.
There follows a brief resume of significant developments in each of the nine lines of trade covered
by the survey. Tables I, II, III, and IV contain data which may be used with profit to clarify statements
contained in the descriptive reports.
AUTOMOBILE DEALERS

The 1945 sales of 53 reporting automobile dealers were 7 per cent larger than in the previous year.
The operations of these dealers, especially in instalment selling, were affected by a virtually complete
absence of new cars and in most cases by a diminishing volume of used cars available for resale. On the
other hand, there was a tendency for repair business to expand, and some firms were able to increase
the volume of work in other phases of their business. Cash and charge transactions increased by about
equal amounts in volume as well as in relation to total sales, whereas the volume of instalment sales
declined 34 per cent from 1944 and constituted only one-tenth of total sales. Cash transactions represented 49 per cent of total sales, and charge accounts 41 per cent. The inventories of automobile
dealers showed a further decline of 10 per cent during 1945, reflecting in large part the sharply diminished supply of new and used cars. Despite this decline in stocks, however, total current assets rose
10 per cent due to increases of 27 per cent in cash and bank deposits, 17 per cent in holdings of
Government securities, and 18 per cent in accounts receivable. Although accounts and notes payable
declined slightly, an increase of 69 per cent in other liabilities resulted in an increase in total current
liabilities of 23 per cent and reduced the current operating ratio to 5.0 in 1945 from 5.6 in 1944.
AUTO TIRE AND ACCESSORY STORES

The sales of 56 auto tire and accessory stores increased during 1945 by 8 per cent. The gains in
this field were achieved mainly by stores which in previous years had added supplementary lines of
merchandise to increase the volume of their business. Tires were not released from rationing in time
to affect the 1945 volume of sales, and the increased flow of tires to stores for civilian use was only
beginning to be felt as the year ended. Instalment transactions, which in this line of trade normally
represent an important element both in total sales and in credit sales, declined to a new low in volume,
constituting only 3 per cent of total and 5 per cent of credit sales. Cash transactions increased moderately (4 per cent) in volume and constituted 35 per cent of total sales, in comparison with 36 per
cent the year before. Charge account sales rose 11 per cent in volume and moved up from 60 per cent
of total sales to 62 per cent. The 17 stores in this group reporting selected balance sheet items showed
a gain within the year in inventories of 38 per cent. Dollar-wise, however, or in relation to sales turnover, this improvement in stocks was not impressive. Gains were made in all other asset items except
holdings of Government securities. Total assets of these 17 stores increased 27 per cent while total
liabilities were rising 25 per cent, resulting in a slight strengthening of the operating position of the
group. Working capital increased 28 per cent, and the current ratio rose to 3.4, as compared with
3.3 in 1944.
DEPARTMENT STORES

Sales of 43 department stores showed a further expansion of 15 per cent during 1945, as compared
with the preceding year. The volume of cash sales increased moderately in actual amount but remained
unchanged at 54 per cent in relation to total sales. Dollar-wise, both charge account sales and instalments increased during 1945 but showed no change in their ratios of 43 per cent and 3 per cent,
respectively, to total sales.
Inventories of 27 stores reporting selected balance sheet items increased fractionally (less than Yz
of 1 per cent) during 1945. All other asset items, notably cash and bank deposits, made stronger gains,

MONTHLY BUSINESS REVIEW

with the result that working capital increased by 15 per cent and the ratio of current assets to current
liabilities rose from 3.1 in 1944 to 3.2 in 1945. Dollar-wise, the over-all improvement in the asset position was approximately four times as great as the increase in current liabilities.
FURNITURE STORES

Despite production restrictions and priorities which curtailed the supply of furniture available
for distribution, the 1945 sales of 51 reporting furniture stores were 12 per cent larger than in 1944.
Although the increase in volume of business was accounted for largely by the expansion in cash sales,
these transactions represented only 24 per cent of total sales. In recent years, cash sales have been increasing in actual volume and in relation to total sales, but the major portion of the furniture store business
is still handled on an instalment basis. In 1945, 64 per cent of total sales represented instalment transactions, which was only slightly smaller than the 66 per cent in 1944. Charge account sales, never a
major factor in the retail furniture business, declining slightly from the small volume of 1944, constituted only 12 per cent of total sales.
Inventories of furniture stores, which evidenced a sharp downward trend during 1943 and a more
moderate decline in 1944, showed a net decrease of only 2 per cent between the end of 1944 and 1945.
The inventory position probably reflects the scarcity of good quality furniture, as well as the reluctance
of dealers to build up inventories of merchandise manufactured under wartime restrictions which
might be difficult to dispose of when better quality furniture becomes available. Dealers report a strong
demand for quality furniture as it appears in stores, especially from married veterans seeking to
establish homes.
The data on balance sheet items reported by 44 firms reflect a considerable increase in current
liabilities, which was only partially offset by improvement in current asset items, mainly cash and bank
deposits. The ratio of current assets to current liabilities declined from 10.6 at the end of 1944 to 10.3
at the close of 1945.
HARDWARE STORES

In contrast with a slight decline in 1943 and an upturn of only 5 per cent in 1944, the sales of
hardware firms increased by 16 per cent during 1945. Two factors which affected the trend of business
during the year were the increased supply of many items usually handled by hardware stores and the
stocking by these stores of a wider variety of merchandise. Inventories at the end of 1945 were 15 per
cent larger than a year earlier, in comparison with an increase of 13 per cent in 1944 over 1943. Cash
sales showed an increase of 14 per cent and constituted about 62 per cent of total sales, as compared
with 63 per cent in 1944. Credit transactions, consisting almost entirely of charge account sales,
increased moderately in dollar volume but only one per cent in relation to total sales. The 22 firms
reporting selected balance sheet items were in a strong current financial position. Although they
reduced somewhat the impressive strength of their 1944 position by sharp increases in accounts and
notes payable, other liabilities rose only moderately, and all current asset accounts made substantial
gains. Cash and bank deposits rose 27 per cent, accounts receivable, 26 per cent, Government securities,
24 per cent, and value of stocks at the end of the year, 15 per cent. The ratio of current assets to current
liabilities was 11.3 in 1945, as compared with 17.6 in 1944.
HOUSEHOLD APPLIANCE STORES

From 1942 to the fall of 1945, the production of household appliances was greatly curtailed by
priorities and restrictions, and as available supplies dwindled the sales of appliance stores declined
sharply. In the fall of 1945, however, the supply situation improved slightly with reference to a few
household appliances, and the sales of 22 reporting firms showed an increase of 15 per cent for the
year over the relatively small volume experienced in 1944. While increases occurred in all types of
transactions, the greatest relative increase, 31 per cent, was in instalment sales, which accounted for
23 per cent of total sales, as compared with 20 per cent in 1944. This may indicate the beginning of a
return movement to the prewar pattern of extensive instalment selling in this line of trade. Cash sales
rose from 43 per cent of the total in 1944 to 44 per cent in 1945. The inventories of these firms, which
had decreased substantially during 1943 and had risen only 10 per cent in 1944, were 41 per cent higher
at the end of 1945 than a year earlier. Total current assets of the seven firms reporting selected balance
sheet items increased 22 per cent in 1945, and even though their current liabilities increased by 83
per cent, these firms enjoyed a current ratio of 8.7 at the end of the year.

MONTHLY BUSINESS REVIEW
JEWELRY STORES

Sales of jewelry firms, which had risen sharply in 1943 and showed a gain of only 4 per cent in
1944, were up 8 per cent in 1945. Cash and instalment sales increased by 7 per cent and 20 per cent,
respectively, over 1944, while charge account sales declined 3 per cent. Cash sales constituted 60 per cent
of total sales- unchanged from 1944; charge accounts, 24 per cent-down 2 per cent from 1944; and
instalments, 16 per cent-up 2 per cent. The principal increase in sales volume occurred in cash transactions, although these sales constituted the same percentage of total sales in both years. While credit
transactions were divided between charge account and instalment sales in a ratio of approximately 3
to 2, instalment sales were about 20 per cent larger in 1945 than in the preceding year. Inventories
at the end
1945 were 12 per cent higher than a year earlier. During the past year, the 30 firms
reporting selected balance sheet items increased their accounts receivable by 23 per cent and their
holdings of Government securities by 22 per cent, but their cash and bank deposits declined 2 per cent.
Their accoun ts and notes payable increased 52 per cent and other liabilities, 23 per cent. At the end
of the year, the ratio of current assets to current liabilities was 4.5 compared with 5.2 a year earlier.

MEN'S CLOTHING STORES

The upward trend in consumer buying of men's clothing which was conspicuous throughout the
war period continued during 1945. The sales of 31 reporting firms were 7 per cent larger in 1945 than
during the preceding year, with all the increases occurring in the volume of cash sales. The latter constituted 62 per cent of total sales, as compared with 57 per cent in 1944. Charge account sales dropped
from 42 per cent of total sales in 1944 to 37 per cent in 1945. Instalment sales continued negligible in
volume, declining 29 per cent from the small 1944
total. Inven tories at the end of 1945 were 42 per TABLE v. PERCENTAGE CHANGE IN SALES AND AC·, . h
d COUNTS RECEIVABLE BY TYPE OF TRANSACTION
cent sma11er t han a year ear1 contmumg t. e tren
ler,
1945 over 1944
that developed in 1943 and 1944 and reflectmg both
Elevent h F ederal R eserve District
Accounts
shortages in production and abnormally high de- -- S ar", - - - - receivable Kind of business
No.
Charge Instal. Cha.rge lnst.almand. The 29 firms furnishing data on selected balby city
firms
Total
Cash accoun ts ment accounts ment
ance sheet items reported very substantial increases Autemobile dealers
Amarillo......
3 - 33 - 23
19 -59
in cash and bank deposits and in holdings of Gov"
" 92
D allas........ . 9
11
14
23 - 33
48
ernment securities but a drop of 13 per cent in acHouston.. . .... 4
5
31 - 2 -41
•
" - 8
Lu bbock ... . .. . 6 - 2 - 3
7 - 29
17
counts receivable. Current liabilities rose very
San Antenio. . .. 4
9
16 - 21
8
20
#
slightly. W orking capital was up 14 per cent, and
T exarkana t . . .. 3
43
45
58
4
"
"
and
the ratio of current assets to current liabilities in- Auto tirestores accessory
creased from 3.8 in 1944 to 4.2 in 1945.
D allas . ........ 4
24
9
27 - 19
31
44
WOME N'S APPAREL STORES

The strong demand for merchandise distributed through women's apparel stores continued
during 1945, when sales of 23 reporting stores exceeded those in the preceding year by 11 per cent.
Cash sales, which comprised about 58 per cent of
total sales, showed a larger increase than credit sales.
Both charge account and instalment sales increased
moderately in volume but declined slightly from
the previous year in percentage of total sales. Inventories at the close of 1945 were somewhat less than
a year earlier. The financial position of 21 firms reporting balance sheet items improved during 1945,
current liabilities showing a mild decrease of 4 per
cent, accompanied by a rise of 14 per cent in current assets. The r atio of current assets to current
liabilities at the end of the year was 3.6, as compared
with 3.0 a year earlier. The improvement reflected
primarily increases of 33 per cent in cash and bank
deposits and of 19 per cent in holdings of Government securities. Accounts receivable declined 3 per
cent during the year.

E l P aso . .... ... 3
21
76
Fort Worth. . . . 3 - t - 8
Housten . . . . .. . 4 - 2 -10
T exarkana . . . . . 3
10
3
D epart ment stores
Corpus Christi . . 4
13
13
Dallas......... 6
17
16
Fort Worth . . . . 3
10
9
H ousten.... . . . 3
7
6
San Antenio . . .. 4
25
28
F urniture steres
Dallas . ..... .. . 3
14
53
E I Paso . . ..... . 4
8
9
HOIL,ton.
11
23
24
Hardware steres
H Ollston. . ..... 4
20
11
Longview.. . .. . 3
13
18
San Antonio. . . . 4
13
14
J ewelry steres
Dallas. . . . ... .. 4
10 9
Fort Worth. . . . 3
11
16 M en's clothing
steres
Dallas . . . . . . . . . 4
4
17 Houston .. . .... 10
11
16
Women's apparel
stores
Houston . . . . . .. 4
12
16
Monroe, La.. . .. 3
10
14
"Less than t hree steres reported .
tTwo in Texarkana, Arkansas.
tChange less than one-half of one per
#No change.

5 -35 -18 -47
14 - 52
49 -67
11 -50
25 - 58
12
57
•
"
15

18
13
8
22

17 -42
17
9
6 -18
12
#
19
50

#
•
#

6
4

54
If
14 --27

•

51
#
4 --19

31 - 30 -33

42
20

14
-

48
34

8 -29 -18 -38
3

10
6
cent.

If --

8 -26

#
#

MONTHLY BUSINESS REVIEW
TRENDS IN RETAIL CREDIT DURING THE WAR YEARS

The end of war and the reconversion of industry to civilian production are slowly altering the
wartime pattern of supply in retail trade. Changes, therefore, may be anticipated in the volume and
pattern of sales of retail credit firms. The 1946 retail credit survey, when taken, will likely disclose
a tendency on the part of both merchants and customers to make a more extensive use of consumer
credit this year than was done during the war, particularly if sustained production of automobiles,
household appliances, and home furnishings can be achieved during the second half of the year. Consequently, now is a proper tinle to review briefly what happened in the field of retail credit during
the Wilr period.
Tables VI and VII are based upon the results of four consecutive annual retail credit surveys
made in the Eleventh Federal Reserve District during the period of United States participation in
World War II. An examination of them will reveal some significant trends in retail trade that developed
under the stress of war conditions. The firms included in each annual survey may be fairly regarded
as representative of operations in the several lines of trade for the respective survey years. Since, however, the numbers and the identities of the firms varied somewhat from year to year, analysis and
comment must be restricted to the general developments disclosed by percentage changes from one
year to the next. Exact measures of change in volume of sales, or of cash and credit transactions, or
of accounts receivable, between the first and the last of the war years, cannot be predicated upon
the data at hand.
Total sales. The most immediately apparent effect of the change over to war economy in 1942
on t~e t~tal sales of retail credi~ dealers is e sharp TABLE VI. TOTAL SALES AND ACCOUNTS RECEIVdeclme m sales volume expenenced durmg that
ABLE BY KIND OF BUSINESS
year by automobile dealers, auto tire and accessory
Four consecutive annual surveys
stores, and household appliance firms. These were
Eleventh Federal R eserve District
the lines whose supply of merchandise was most
__ Total~:I~~~eea~~~c~~enVt~I~!re~~~ble-Yellr-sharply affected by the conversion of factories to
Kind of b",in.u
1942 1943 1944 1945 1942 1943 IIM4 1945
war production and by the channeling of vital !~~,,:~~il:n~~~S -68 25 8
8 - 02 - 13
10
18
metals, rubber, and other materials into the making
cessory stores ... -23
36
18
8 - 59
8
•
24
of planes, ships, tanks, guns, and miscellaneous mu- ~~;r:it:-:~~;rt~:es: _1~
:.:~~ -2~
1~
nitions. The same general effect, but in less degree, Hardware stores .. 4 - 2
5 20 - 35 - 33
8
26
is noticeable in the case of two other lines of trade, H~~eh~~r~rpli- -27 -37 - 17 20 -55 -56 - 26
4
furniture and hardware, whose supply of goods Jewelry stores. . . . 22 34 4
8 - 38
16 -36 23
Men's clothing
was sh arp Iy restricte d by t h e war production prostores . .. . . . . .. 13 30
9
7 -32 - 8
13 - 13
gram. Furniture stores in 1942 dropped slightly Women's apparel
below the total sales figure for the previous year,
~~~~~~~ ·l~~~ ih~n !~e-h~~ of ~~e per8 ce~;.3 7 4 - 3
while hardware firms registered a nominal increase,
which was reversed in 1943 by a small decline. At the end of 1943, total sales of hardware stores
appear to have stood at practically the 1941 level.

M l6 lr

In the four remaining lines of trade, whose stocks were not so quickly affected by wartime dislocations of production and supply, total sales showed substantial increases in 1942 over 1941, and
even greater increases in 1943 over 1942. This more rapid rate of expansion of sales in these predominantly "soft" goods lines during 1943 doubtless reflects both the increasing shortages in durable
goods and the growing volume of consumer purchasing power resulting from expanded employment
at rising wage rates in war plants and civilian industries. In these same four lines, the trend of total
sales continued upward during 1944 and 1945 but at a significantly reduced pace. This slowing down
was probably due, in part, to the increasing scarcity of some major items sold in these stores, such as
women's hosiery, household linens, watches, clocks, silver plate, men's shirts, and both men's and
women's suits and coats. Emphasis on purchase of war bonds and other types of wage and salary savings may also have had some restricting effect on the total volume of consumer spending in these
lines of trade.
In the case of automobile dealers, auto tire and accessory stores, and furniture establishments, an
upward trend of sales manifested itself in 1943 and continued moderately, but at uneven rates, during
the next two years. Increased activity in used car selling and in repair and other service functions
reversed the rapid down trend which struck automobile dealers in 1942 and enabled them to achieve

MONTHLY BUSINESS REVIEW

by 1945 total sales equivalent to approximately 50 per cent of the high figure reached in 1941. A growing volume of tire repair sales and the stocking of supplementary lines of merchandise by some firms
restored auto tire and accessory stores approximately to their prewar volume of sales by the end of
1943. During the next two years, this upturn in total sales of these stores continued, although at a
diminishing rate.
Sales of hardware stores showed their most adverse trend in 1943, after resisting in 1942 the
downward plunge which characterized sales volume in other lines of "hard" goods. Reflecting a
slightly improved supply situation and a rising price level, these stores registered comparative gains
in total sales during each of the last two years of the war. Household appliance dealers suffered three
consecutive years (1942-1944) of decline in total sales, due to virtual discontinuance of production of
such important appliances as refrigerators, radios, washing machines, and vacuum sweepers. Reversal
of the down trend came only in 1945, after wartime restrictions on production had been relaxed.
Cash and credit sales. The increase in cash sales in all but two of the nine lines of trade in
each year of the war, accompanied, for the most part, either by decreases or by less rapid increases
in charge accounts and instalment sales, is the most conspicuous fact revealed by Table VII as to
wartime changes in the types of retail transactions. In most lines, the sharpest increases in cash sales
occurred in 1942 and 1943, while credit selling was adjusting itself to Regulation W. This regulation
with its limitations on the use of consumer credit, becoming effective during 1941 and 1942 with
reference to nearly all important lines of retail trade, had the double effect of shifting a considerable
volume of both types of credit transactions into the category of cash sales and of causing some customers who normally would have paid out their purchases in short-term instalments to change over
to charge accounts. At the same time, unaccustomed purchasing power in the form of wartime wages
was accumulating in the hands of millions of consumers, enabling them to pay cash for goods which
before the war they would have bought on credit. It seems likely that during 1942 Regulation W was
the stronger of the two influences affecting the distribution of sales between cash and credit, for in
that year everyone of the nine lines of trade showed sharp declines in accounts receivable (Table VI),
as compared with the previous year; eight lines reported a drop in instalment sales, and four lines
experienced a fall in charge accounts. That year, however, the marked drop in total sales of automobile dealers, auto tire and accessory stores, and household appliance firms, resulting from depleted
inventories, accen tuated the effect of Regulation W on credit sales in those lines. In 1943 and 1944,
except in furniture, hardware, and household appliance stores, there was a moderate upward tendency
in charge account sales, while instalment sales still lagged in most lines. Alone among establishments
traditionally doing a large volume of instalment business, furniture stores registered slight gains in
that type of transaction in both 1943 and 1944, while their total sales and cash sales increased somewhat more rapidly. It was not until 1945 that instalment sales showed an upturn in any other lines
of trade. In that year, department stores, hardware, household appliance, jewelry, and women's apparel
stores joined the furniture dealers in the plus-column. In the case of automobile dealers and auto tire
and accessory stores, continuing shortages of the types of merchandise usually sold on terms were
doubtless the main obstacle to an increase in instalment sales. Cash purchases by returning veterans
appear to have dominated the 1945 sales transactions of men's clothing stores, causing a reversal of
a slight two-year upward trend in charge accounts and a sharp decline in instalment (budget) sales.
On the whole, the trend at the close of the war period seemed to be in the direction of a mild
resurgence of instalment selling, conditioned by the rate of increase in the supply of consumer goods
and by the requiremen~ of Regulation W. A similar trend in charge account sales is discernible in
department, hardware, and auto tire and accessory stores, in which charge sales constituted an important part of the total volume of business in prewar days. In three lines of trade, however,-namely,
furniture , household appliance, and jewelry stores-in which instalment sales were the dominant type
of transaction before the war, charge accounts showed either a net loss or a very small gain in 1945,
while instalments were moving significantly upward, as compared with the previous year. Cash sales,
for the first time in the war period, showed an increase in all lines during 1945, though the rate of
increase slowed perceptibly in department and auto tire and accessory stores.

MONTHLY BUSINESS REVIEW

Any substantial increase in the variety and supply of consumer durable goods during the current
year may be expected to bring an increase in instalment sales within the pattern of Regulation W.
Charge account sales are not likely to show any marked increase beyond the 1945 level so long as
employment, wages, and disposable incomes remain at current high levels.
TABLE VII.

SALES BY TYPE OF TRANSACTION AND BY KIND OF BUSINESS
Four consecutive annual surveys
Eleventh Federal R eserve District
Percentage change from previous year
- Cash-Year - - - Charge accounts- Year --Instalment-Year1942 1943 1944 1945 1942 1943 1944 1945 1942 1943 1944 1945
Kind of business
Automobile dealers ... . .. . ......... ... ..... . . .... - 67
44
9
13 -36
15
20
17 -82
• -18 - 34
Auto tire and accessory stores... . . . . . .. . . . . . . . . . . .
1
50
17
4 - 24
43
21
11 -41 - 21 - 19 - 15
Department stores .. , . . ... . .. . . , . . .. ' . , . , . . .... ,, 46
67
21
14
4
25
10
15 -35 - 3 - 4
11
Furniture stores ., ... . . ... . .. , , , , . , , , , , . ' , ' . , . , . , 69
56
22
30
7
25 - 5
• - 6
15
6
8
Hardware stores............... .. ... . . ..... .. .... 35
30
13
14 - 5 - 27 - 13
20 -45 - 11 - 17
4
Household appliance stores . . , . . . . . . , . . , . , .,.,., .. 32 -14 - 3
17
2 -26 -11
4 - 51 -70 -39
3t
Jewelry stores ,." , .. , ....... , . . , . , .' , , . '. , , , ., ,,74
79
11
7
22
8
4 - 3 - 4
4 - 8
20
Men's clothing stores , , ,. , .. .... ...... . , ., .. ,.. .. 48
58
16
16 - 1
5
3 - 5 - 34 - 5 - 2 -29
Women's apparel stores .. .. .. .. . .. .. . .. .. .. . .. . .. 35
77
14
13
12
22
7
8
t
t
t
t
·Change less than one-half of one per cent.1
tNo representative figure available.

Accounts receivable. The sudden drop observable from Table VI in accounts receivable in
all lines of trade during 1942, ranging from 23 per cent in women's apparel stores to 62 per cent
among automobile dealers, should probably be attributed primarily to the influence of Regulation W.
For, it will be noted, end-of-year receivables declined almost as sharply in those lines of trade which
showed gains in total sales as in those whose sales decreased. Moreover, except for automobile dealers,
all groups which suffered declines in total sales during that year experienced even more notable
decreases in receivables. The freezing of delinquent customers' charge accounts, the shortening of the
period for payme.Qt of charges incurred after the advent of Regulation W, and the reduction in the
time which instalments could run, together with the required increase in down payments, stimulated
prompt liquidation of both types of credit obligation and shortened the average period of collection.
Even in those lines, such as department, furniture, jewelry, and women's apparel stores, which made
gains in charge accounts in 1942, year-end receivables declined more sharply than charge sales increased.
During 1943, four types of stores (auto tire and accessory, department, jewelry, and women's
apparel) experienced a mild reversal of the previous year's downward trend in receivables, and a mitigation of that trend occurred in three other lines (automobile, furniture, and men's clothing).
Hardware and household appliance stores, which were hard hit by shortages of merchandise and
whose credit sales of both categories dropped sharply, showed about the same percentage of decline
in receivables as during the previous year. But in all lines it should be recognized that by 1943 and
thereafter a more plentiful supply of cash and other disposable income enabled credit customers in
many cases to exceed even the requirements of Regulation W as to promptness in paying charge and
instalment accounts, thereby tending to reduce year-end receivables below prewar levels.
In fact, it may be said that Regulation W had its main effect during 1942, and by the end of
the following year the new pattern of credit buying induced by the regulation had been established
-a pattern of moderate use of credit under terms involving much shorter than prewar periods of
collection. Adjustment to this pattern, so far as charge accounts were concerned, appeared in 1944
when both charge sales and accounts receivable increased moderately over the previous year in nearly
all lines except those most sharply affected by merchandise shortages. In instalment business a, like
adjustment was not so evident until 1945, when some of the traditionally heavy instalment lines, such
as household appliance, hardware, and jewelry stores, experienced a mild improvement in their stocks
of goods.
During 1946 and 1947, it seems reasonable to anticipate that consumers, in an effort to satisfy
war-deferred demands for civilian goods, will diversify and enlarge their purchases, with emphasis
on durables, as the items of merchandise available in the different lines of trade become more varied
and more plentiful. If this happens, the use of consumer credit will almost certainly expand, even
under a continuation of Regulation W, and end-of-the-year receivables, especially in instalment
accounts, seem likely to increase.

MONTHLY BUSI NESS REVIEW

Review of Business. Industrial. Agricultural. and Financial Conditions
DISTRICI' SUMMARY
As a result of continued drought over most of northwest
Texas, official estimates on May 1 of the yield of the Texas
wheat crop were approximately 40 per cent below the high
estimate made on April 1. Delay in field work caused by
frequent rains during May in the east and south parts of the
district, hail and wind storm damage in many localities, retardation of cotton growth by cool, cloudy weather, and deterioration of ranges, ca ttle, and grain crops in the dry areas of west
and northwest Texas constituted additional unfavorable developments in agricultural conditions of the district during the
past month. Partially offsetting these adverse factors were an
improvement in the supply of moisture over most of the
district, good progress in the growth and harvesting of commercial vegetables in the Lower Valley and in south Texas, and
the generally satisfactory condition of the corn crop except
in the dry areas of the west and northwest.
Industry in the district during May felt indirect effects of
the national industrial slow-down induced by six weeks stoppage of soft coal production. On the whole, however, the district appears to have experienced less decline and interruption
of activities than occurred in those parts of the nation which
depend heavily on coal for industrial fuel and power. Temporary suspension of railway transportation near the end of the
month considerably complicated, for a short time, both industrial and business activity. Petroleum product ion gained
moderately during April as a result of increases in allowables
authorized by the Texas Railroad Commission. Reflecting the
strong current demand of the construction industry for their
products, Portland cement mills in Texas increased their production and shipments of cement in March to the highest figures
on record for that month and to the highest for any month
since December 1943. Additional evidence of the rapid expansion of building activity is derived from the fact that total
construction contracts awards in April were 10 per cent higher
than in March, and exceeded those of any other mon th since the
spring of 1942, when construction was predominantly for
military purposes. Slightly more than one-half of all contract
awards were for residential construction, the bulk of which
was reported to be in the category of one-family dwellings
costing $7,000 or less.
Pre-Easter shopping and an upsurge of consumer spending,
estimated by the Department of Commerce to be at the highest
annual rate in the history of the nation, were reflected in April
sales of district department stores, which showed substantial
gains over the high totals of the previous month and very
sharp increases over April a year ago.
BUSINESS
Responding to the stimulus of pre-Easter buying, sales in
reporting department stores of this district rose to an all-time
seasonal peak in April, exceeding by 53 per cent those of the
same month last year. The magnitude of this increase reflects,
in part, the later impact of pre-Easter shopping this year, t he
increase in prices of merchandise, and the reduction of sales
in April 1945 caused by the closing of some stores at the time
of President Roosev~!t's death.
It is notable that while the season's sales peak was reached
last year one week before Easter, this year the seasonal rise
starting during the week of April 6 continued upward without
interruption through the Saturday before Easter, reaching a
volume for that week that was 380 per cent of the weekly
average in the prewar years of 1935-1939-years when there

were no shortages, incomes in relation to living costs were
generally good, and individual income taxes were low.
\V'hen department store figures for the two months of March
and April this year and last are combined for the respective
years in order to provide periods comparably influenced by the
Easter season, total sales during the two months this year are
found to have exceeded those for the same months of 1945
by 30 per cent. The increase in March and April this year
over total sales for the same two months in 1941, the last
prewar year, amounted to 169 per cent.
In the last week of April this year, the margin of increase
in department store sales over such sales in the comparable period of 1945 declined to 23 per cent, following the customary
pattern of post-Easter shopping. In the first two weeks of
May, however, sales began to climb again toward a peak which
promised to equal, if not exceed, the high mark reached in April.
Merchandise st ocks in these stores at t he end of April were 12
per cent above the previous month and 10 per cent larger than
at the close of April 1945 .
Collections of accounts receivable of department stores proceeded at a highly satisfactory rate in April, indicating an average collection period of 45 days on charge accounts and of
approximat ely 3 months and 10 days in t he case of instalment s.
These figures may be compared with 46 days for charge account
collections and 3 months and 25 days for instalments in April
of last year, and with 73 days for charge accounts and 6 months
and 20 days for instalments in the same month of the last prewar year. The shorter average period of collection of both
types of accounts receivable in recent years reflects the influence
of increased spendable incomes and of the limitations imposed
by Regulation W upon extension of consumer credit.
WHOLESALE AND RETAIL TRADE

Retail trade:
Department stores:
Total 11 th DiaL.... .

Corpus Chrillti . . . . .

Dan.. ....... ... ..

Fort Worth .. .
Houston .. . ... .
San Antocio .. , ... .
Shrc\"cport, ls.... .

Other eitil'8 ... .... .
RctaU furniture:
Totaillth D~I.... .
DalLas ........... .
EIPaso ..... ,., .. .

Houston .......... .
llort Artb ur . . ... . .
San Antonio ... ... .
Wholl!!!ale trade:·
Machinery Mlp't &:

Number
of
reporting
firma

+53
+49
+57
+49
+62
+53
+49
+40

+ 56
+51
+67
+44
+74
+46

3
3

Drugs. . ... . ..... . .

Groceries........ . .
Hardware.... . ....
Tobacco & products

9
4

~TATISTrcS

Percentage change in
Net sales
Stocks!
April 194.6 from
Jan. 1 to
April194fi from
April
March
Apr. 30, 1946
April
March
1946
1946
(rom Hl46
194-6
1946

48
4
7
4
7
5
3
18

Automotive IlUppli08

8uppliel!l..... . ...

:===::N,;t

+18
+30
+37
+29
+58
+72

+ 6
+10
+ 3
+10
+ 6
+ 6
+ 4
+10

+27
+18
+32
+19
+28
+31
+22
+18

+10
+22
+16
+16
+15
- 4

+12
+ 8
+16
+ 7
+19
+ 7

+ 3

+11

+26

+is
+14

- 4

- I
-

+16
+ I
-6
-5
+9
- 3
+11
-

+23
+34

+18

+i
+8

·Compiled by United States Bureau co! Census (wholesale trade fig1lres prelim inary).
tStocb at end of month.
tlndieates change less than one-half of one per cent.

IJ;lDEXES OF DEPARTMENT STORE SALES AND STOCKS
Daily average snlee-(I935--1930 "'" 100)
Adju.ted
U nadj usted·
March February
April
March February April
April
UI46
1946
1946
1945
1946
1946
19'6
316
227r
352r
336r
339
Di.!!trict ... . . 335r
299
315
225
351
335r
339
Dau.. .. ... . 336
325
210
329
34.5r
312
275
Houston . ... . 326
297

April
1945
256
US
236

SIocka-(l93~1939-100)

April

District .

1946
202

Unadjusted·
March February
1946 . 1946
186r
t70r

·Unadjusted for seasonal variation.
r-Reviaed.

April

1945
176

April

1946
208

Adjusted
March February
1946
1946
IDOr
UHr

April
1945

182

MONTHLY BUSINESS REVIEW
Furniture sales of reporting stores in the district increased
2 per cent during April over the previous month and 56 per
cent over April a year ago. In stores reporting cash and credit
sales separately, cash sales were 2 per cent less than in March
of this year but 70 per cent greater than in April 1945. Credit
sales increased 5 per Cent over the previous month and 48 per
cent over April of last year. In these stores cash accounted for
23 per cent of total sales compared with 25 per cent in the
previous month and 21 per cent in the corresponding month of
last year. Thus no pronounced recent change is observable in
the proportions of cash and credit transactions. Stocks, increasing during April at a more rapid rate than sales, were 10
per cent higher than at the end of March and 13 per cent
above April 1945.
Two government actions recently taken are expected to
improve the flow of clothing to retail stores. These were (I)
an order of the Civilian Production Administration directing
manufacturers and finishers of lining fabrics to set aside 15
million yards of lining cloth quarterly for garment makers
and (2) a 30-day suspension of the OP A penalty order which
would have prevented delivery to retailers of several hundred
thousand men's high-priced suits and top-coats produced in
violation of the Maximum Average Price regulation. Expansion of inventories of consumer durable goods has been delayed
by the contracting output of steel and other basic materials
resulting from the prolonged labor dispute in the soft-coal industry.
Comparative figures suggest, however, that what have appeared to be shortages in some lines of merchandise have been
in reality the consequences of a situation in which a large volume of goods has been inadequate to meet an unprecedented
demand. For instance, there has been a shortage in relation to
demand of piece goods items such as silks and velvets, woolen
dress goods, linens and towels, muslin, and sheeting; yet, the
actual purchases of these items during the most recent full
year for which data are available ranged from 263 to 332 per
cent of the purchases of the same items made in 1939. Buying
of women's and misses' ready-to-wear, including accessories,
was three times the anwunt purchased in the earlier period,
and in the case of women's and misses' suits, the purchases ran
as high as six to one. Sales of men's and boys' wear were
more than 200 per cent of the 1939 figure. A similar situation
exists in the matter of consumer durable goods, in which deferred demand had reached unpreceden ted proportions by the
end of the war. Shipments from factories of some of these
items, such as radios, electric irons, vacuum cleaners, alarm
clocks, home laundry equipment, and kitchenware, had reached
or were closely approximating prewar volume by March of
this year. Yet dealers' shelves and stock rooms are stripped
of these articles so quickly that many customers fail to realize
the gradual improvement in supply. Thus, while there have
been, and are still, acute shortages of a great number of important consumer items and much difficulty has been experienced in obtaining many things desired from retail stores,
disappointments in some cases have resulted not from a shorter
supply than heretofore but from a demand so great that consumption has more than kept pace with increased production.
AGRICULTURE
Field work was delayed over most of the eastern and southern
parts of the district by rains ncar the end of April and during
a considerable part of May. The North High Plains and some
other sections of northwest Texas, however, are still in need
of moisture to improve ranges and facilitate planting. The
continued moisture deficiency in these sections has resulted in
short ranges, a sharp downward revision of the estimated wheat

yield, and a heavy abandonment of wheat acreage. Corn and
grain sorghums made good progress for the most part in May,
but cotton generally needs warmer weather and sunshine. Rains
in the southern and eastern areas interrupted the harvest of
vegetables, and accompanying hail storms inflicted considerable
damage on both vegetables and frnits.
As a result of spring drought conditions in the northwest
section of the State, the Texas wheat crop, which is now being
harvested, was estimated at 35,666,000 bushels on May 1 by
the United States Department of Agriculture. This represents
a drop of more than 24,000,000 bushels below the forecast of
April I, and compares with a total production in 1945 of
41,778,000 bushels and a 10-year (1935-1944) average of
34,863,000 bushels. The average yield per harvested acre for
the State was forecast at 8.5 bushels on May I, compared
with a yield of 9.0 bushels in 1945 and a 10-year average of
11.1 bushels. Local showers in parts of the South High Plains
in the latter part of April and the first part of May resulted
in some improvement in small areas, and irrigated acreage and
wheat seeded on summer-tilled land were making good progress
in mid-May. These areas, however, make up a relatively small
fraction of the total wheat acreage and do not offset the
decline in prospects over most of the plains section.
It was estimated on May 1 that approximately 30 per cent
of the seeded wheat acreage would not be harvested this year,
leaving about 4,196,000 acres for harvest. The estimated percentage of seeded acreage that will be abandoned this year is
considerably greater than the 10.2 per cent in 1945, but just
equals the 10-year average abandonment. Some wheat fields
in the High Plains are being grazed in an effort to salvage as
much of the crop as possible, while some others have been
plowed up.
Reflecting both a considerable use of wheat for stock feeding
and the effects of increased exports of grain to alleviate hunger
in Europe, total stocks of wheat in all positions in Texas declined almost 60 per cent during the first quarter of 1946, according to estimates of the United States Department of Agriculture, falliog from 22,957,000 bushels on January I to 9,347,000 bushels on April 1. Stocks at interior mills, elevators,
and warehouses on April I were estimated at 427,000 bushels,
compared with 7,520,000 bushels on the same date last year,
and with a 10-year average of 4,073,000 bushels. Estimated
stocks on farms were 1,044,000 bushels, compared with 2,364,000 bushels in April 1945.
With the aim of encouraging a rapid movement to market
of wheat and other grains as they are harvested, a joint order
of the Office of Economic Stabilization, the United States Department of Agriculture, and the Office of Price Administration
increased ceiling prices on all grains, effective May 13. The
order raised the ceiling price of corn 25c a bushel; wheat, l5c;
oats, 5c; barley, 9c; and rye, 10c. On grain sorghums the increase was 18c per hundred-weight.
Corn was up to a stand over most of the district by the
latter part of April and has made good progress since that
time. Some fields, however, particularly in north central and
northeast Texas were grassy at the middle of May due to heavy
rains in those areas which delayed cultivation. Grain sorghums
in the southern areas made good progress during the month of
May, and planting moved ahead rapidly in those areas of the
South High Plains and Low Rolling Plains of Texas that have
received rain.

The planting of cotton is nearly complete in all sections of
the district except in the North .High Plains, where drought
co nditions have caused delay. In the eastern part of the district

MONTHLY BUSINESS REVIEW

some replanting of cotton has been necessary due to damage
resulting from hail and excessive rainfall, and sunshine and
warmer weather are needed to improve the general condition
of the crop in that area. Chopping is underway in most of the
cotton-growing sections of the district. By mid-May blooms
were reported in the Lower Valley counties, and the formation of squares in the Coastal Bend area.
Commercial vegetable prospects were materially improved
during the last two weeks in April. Planting of cantaloupes,
green com, and watermelons progressed under generally favorable conditions during that period. Rains starting near the end
of April and continuing in May improved late plantings but
caused some interruption of field operations in all early vegetable areas. Nevertheless, the harvest of cucumbers, green
corn, onions, potatoes, squash, and tomatoes in the early distriCts made generally good progress in May.
The fruit and tomato crops of eastern Texas, which had
escaped harm from frost, suffered considerable damage in some
localities from severe hail and wind storms during the month.
The Jacksonville and Tyler, Texas, areas reported particularly
heavy d\1mage to vegetables, fruits and berries. At different
times during the month, losses of varying degree were inflicted
by hail upon garden and field crops in the Lower Valley and in
central and north Texas, and by excessive rains and local floods
in the southeast and west central sections of the State.
Ranges were reported to be in good condition in the eastern
parts of Texas and Oklahoma on May 1, but their condition
had declined sharply in the High Plains, Low Rolling Plains,
and the northwest counties of the Edwards Plateau. Local
showers in parts of these latter areas, and in New Mexico, improved. conditions slightly during the first part of May. Additional moisture is needed, however, throughout the west and
northwest parts of the district to promote range growth and
replenish stock water supplies.
Cattle on the dry ranges of northwest Texas underwent a
marked decline during April, but in other parts of the State
made satisfactory gains. The average condition of all catde in
the State on May 1 was considerably below that of a year ago,
but about equal to the 20-ycar (1925 -1944 ) average for that
date. Some shrinkage was reported also in the dry areas of New
Mexico and Arizona. The average condition in Oklahoma on
May 1 was somewhat improved over a month earlier, but
slightly below the condition on the same date last year.
TI,e condition of sheep in the Edwards Plateau region of
Texas was reported to be far below the condition on May 1,
1945, and slightly under the 20-year average. Dry ranges in
most grazing areas of New Mexico and Arizona have held
down the conditions of sheep in those states also. As a result
of the generally short feed supply, marketing of Texas yearling
lambs, both shorn and wool, continued heavy throughout April
and the early part of May. Many of the lambs marketed, however, though only in stocker or feeder condition, went into
slaughter channels. Heavy marketing is expected to continue
through June. In Arizona, also, the shortage of range feed
caused extensive marketing in April of high grade spring
lambs, most of which were shipped to California.
Receipts of cattle and calves at the Fort Worth market increased over those of the previous month but fell considerably
below receipts in April 1945. On the San Antonio market, receipts increased moderately over those of the previous month
and of the same month last year. The movement of sheep and
l~mbs into these markets more than doubled that of March

and was about 40 per cent greater than the movement in April
1945. Receipts of hogs in April increased over the previous
month at Fort Worth and at both markets were well above
receipts during the same month last year.
LIVESTOCK RECEIPTS--{Number)
- - - F o r t Worth
A~ril

April

1 46
SS.OM
14.836
57.M9
269.019

Cattle , ......
Calvll6 ..•......... . ..
H.... .......... .... ..
Sheep ... __ .......... .
0_ • • • • • ' "

1946
127,483
18.068
42,044
179,242

March
1946
41.272
11.732
55.679
108.742

April

1946
31.703

21.991
8.011
77.801

Sa.n Antonio - - _
April
March
1946
1946
26.328
17.619
19.560
15.936
6.203
8.062
43,354
21.225

COMPARATIVE TOP LIVESTOCK PRICES
(Dollan per hundred weight)

Beef steen ..... .

_--FortWorthb---_ _ _ San Antonio--_
April
April
March
April
April
Mo..rch
1946
1945
1946
19'6
1945
1946
11735
116 .50
11735
1600
115.75
116 .50

:~~

Stocker steers . . . . . . .
Heifel'! and yearlillgB.
Butcher cows ... . . .
Calves .... . . . . . .. .
H............. . .. . .

::~

15 .00
16.50
14.65
15 .00

Lambs ........... ..

1300
15 .00
1455
15 .75

lUg
13 90
16 .00
1' .65
14 .75

is 25

13.60
15.75
14.6.\
1450

15 .00
12 .50
14 .50
14.55
14 .50

16 50
50
1000
14 .65
14 .25

CASH FARM INCOME

(Thouaaoda of dollans)

..-----January
-

Ariz,):la ................ .

Louiaiana ....• . • , .. . _. . . .
New Me1ico . •.• ,._.,._ ..
Oklahoma .. . . . . .. . . . .
Texas ... ... . . ... . . ..... .
Total . .. . . .. .

19(6---:~-~:- Tot.al reee!pta--:-~--

CroPi Li,estock'
8,050
4.279
9.338
6.299
2.467
2,434
10.421
16,642
37.803
34,686

Reeeiptifrom-

January
194 6
12.329
15,637
4,901
27,063
72.489

January
1946
12,792
18.531
6,894
33,102
78,434

68.070

132,419

149,753

64.840

Jan. 1 to
1946
12.329
15,637
4,901
27,063
72,489

132,419

Jan. 31
19.6
12.792
18.531
6.8\l4
23,102
78,434

149,753

-Includes rect'ipts from the sale of live3tock and livestock products.
SOURCE: United States Department of Agriculture.

The April 15 report of the United States Department of
Agriculture indicated that the recent upward trend in prices
received by Texas farmers for most field crop and livestock
items has continued. Cotton rose 2 cents a pound between
March 15 and April 15 to 24.4 cents, which is the highest April
level since 1923. The prices of beef cattle, calves, sheep, and
lambs advanced moderately during the same period, while hog
prices remained stable. A very slight advance was registered
in the prices of small grains, sweet potatoes, and citrus fruits.
Rice, turkeys, eggs, and wholesale milk prices declined slightly,

FINANCE
Substantial withdrawals by the Treasury from its war loan
accounts at depositary banks and a reduction in interbank balances were the principal factors accounting for a decline of
$83,000,000 during April in the daily average of combined
gross demand and time deposits of member banks in this district. The April average of these deposits, amounting to $5,484,000,000, was at the lowest level since November last year, but
exceeded by $1,064,000,000 the average for April 1945.
The reserve balances of member banks also declined moderately during April, the average for the month being the lowest
in four months. On the other hand, required reserves continued
to increase, due to the fact that the growth in customer deposits, which require reserves, partially counterbalanced the decline in reserve-exempt war loan balances. During the last half
of April, excess reserves of member banks dropped to approxi-

MONTHLY BUSINESS REVIEW
mately $100,000,000, the lowest since April 1945. It is probable, however, that excess reserves increased during the first
half of May, in view of the fact that reserve balances rose
substantially, averaging about $15,500,000 higher than those
for April.
Federal Reserve notes of this bank in actual circulation
showed little change between April 15 and May 15, after having declined substantially during the preceding four months.
The gross deposits of weekly reporting member banks declined $38,000,000 between April 10 and May 8, due to the
fact that the increase of $31,000,000 in adjusted demand and
time deposits was more than counterbalanced by a $69,000,000
decrease in Government and interbank deposits. In the same
period, these banks added $11,100,000 to their balances with
the Federal Reserve Bank. In providing the funds to meet these
demands, the reporting banks reduced their loans and investments by $35,100,000, withdrew $9,500,000 from their balances with correspondent banks, and borrowed $2,000,000 from
the Federal Reserve Bank.
Although total loans of reporting banks showed little change
during the four weeks, there were substantial shifts among
the various classes of loans. Loans to others than brokers and
dealers for security trading declined by approximately $5,000,000. This decline, however, was more than offset by increases
of $3,400,000 in real estate loans, of $1,100,000 in loans
to brokers and dealers, and of approximately $1,000,000 in
other classes of loans. The decline of $17,000,000 in holdings
of certificates of indebtedness was associated with the redemption in cash of the issue maturing on May 1, but the banks
also reduced their holdings of Treasury bonds by approximately
$21,000,000. Holdings of other securities, which have shown
an upward trend in recent months, increased further by $3 ,000,000 during the four weeks, and on May 8 were $20,000 ,000
higher than a year earlier. The increase over a year ago amounted
to 41 per cent as compared with gains of 12 per cent in total
investments and 68 per cent in total loans.
CONDITION OF THE FEDERAL RESERVE BANK
(Th.ousands or dollars)

May 15,
Total cash reserves ........ _. .. . ..... .•..... .

Discounts {or member b3Dks..

. _. .• .•. •. •. •.

Foreign Joana on gold _................••.•. ••..
U. S. Government securities ..
Total earni ng asseta ........ .
.
Member bank rescr\'e deposita..
Federal Reserve Notes in actual circulation . .

1946
1476.044
1,144
1.440

895.880
898.464
747.266
588.828

DALLAS

May 15.
1945
1554.513
200

NOlle

725.6M
725.865
680,235
565,363

Aprill5.
1946
1471,209
50
1,280
877.923
879.263
728,751
589.082

CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS
IN LEADING CITIES-Eleventh Federal Rcuerve Distri cr
('Thol1s.'l.oW of dollars)

May 8,
1946
Total loans and iovestmenU! ........ ... .
$2.097.&53
Total loans. . ... . . ... ... ..... . ... . .............
682,741
Commercial, industrial. and agriculturalloaos ..
403.867
7.053
Loans to brokers and dealers in securities . .......
Ot.hcr 10011:1 for purchllsing or carrying !JCCurities. .
146.389
39.021
Real estate loans ... ............ . ... . .........
285
Looos to !lanka
AJI other loons.
85,126
Total investments.......
1.415.112
55.953
U. S. Tre.'\Sury bills.. . . . . . . . . . . . . . . . . . .. .
4.37,156
U. S. Tretulury certificates of indebtedness ..
U. S. Trea:Jury not.es .....
211 .303
U. S. Government bonds ......... .............
642,762
14.5
Obliga.tions guaranteed by United States Gov·t..
Other securities.. ... ........... ..... ........
67,793
Reserves with Fedc",l Reservo Bank
401,1348
225,081
Balances with domestic bnuks. . .. . . . .
Demand dcposita---adjust.ed·. .. . ....
1.422.443

TJ:ttJ1:t~G~~~~~~~~t' d~~ft~:: .

Interbank deposita ..... ,. . . .. .. . . . . . .
Borrowings from Federal Reserve Bank

...........

~~:~

548.607
2.000

May 9.
1945
11.673.136
406.971
267,427
5.957
49.866
22.449
154
61.118
1.266,165
58.039
390.176
220.i32
539.341
9.740
48.137
349.840
222.527
1.274.630
243,41Jl
135.120
516,255

None

April 10.
1946

12.132.987
682.278
403.681
6.474
151,377
36.101
349
84.296
1.450.709
53.465
454.072
214.739
6113,446
145
64.842
390,834
234.617
1.394.354
299.585
413,882
556.987

None

-Includes all demand deposits other than interbank and United Stutes Government. less
caaqitems reported on hand or in process of collection.

DEBITS TO INEllVIDUAL ACCOUNTS
(Thousands of dollars)

Abilene •...•.•....•.•.•• $
Amarillo ...•.• .•..... •.•
Austin ............ . .....
Beaumont ........ .. . ....
Corpus Christi . . .........
Corsicana •...• .. ... . ..•.
Dallas .............•....

EI Paso .... ....
Fort Worth ...
Galveston ..•.
ROIlSton . . ....
Larerj'J • . .....
Lubbock .....
Monroe-. La ...
Port Arthur ..
Roswell, N. M
San Angelo ...
Sun Ant,min ..
Shreveport. La...
Texarkana· .....
Tucson, Ariz ... . .... . ....

~~~:::::::::::::::::::
Wichita Falls .. .

April
1946
22.001
54,442
84.142
55,627
67.564
7.402
699.336
79.546
209.835
50.697
624.524
15.4!J5
38.699
22.472
25,855
11,424
23.929
201,146
86752
20.489
46.889
31,021
37.193
37,912

Pctg.cbange
April
oyer yeat
1945
15.724
H6
40,481
+ 20
66.252
+27
52.777
+ 5
51.084
+30
5.840
+ 27
545.684
+28
56.351
+41
1132,011
+ 9
40.865
+24
564.337
+11
12.223
+27
28.667
+35
15.959
HI
23.058
+12
8,600
+32
15.374
+56
147.452
+36
84.792
+2
20.391
+1
32.700
+43
23.627
+31
26.063
+43
213.126
+30

March
1946
23.477
64.100
106.826
58.774
70.547
7.573
684.528
81.172
218.050
58.571
666.873
14.858
39.310
24,738
25.899
12.849
21.026
205.436
03.074
21.185
46.509
29853
43.472
43.440

Pctg.change
over month
-2
+1
- 20
-5
- 4
-2
+10
-2
-4
- 13

-6
+4
-2
-9
-1
- ll
+14
-2
- 7
-3
+1
+4
-14
- 13

Total.24 cities .. .• ...
12.001.139
- 2
12,655.192 12.105.458
+ 21
·Inell.ldes the figures of two banks til Texarkana. Arkansas, located in the Eigbth Distri ct.
tChange less than one·hal£ of one per cent.

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Roserve District
(Average of daily figures-Thousands of dollars)
Combioed total

G"",
demand
April
1944 ....... . .. 13,292.252
April
1945 .......... 4.039.267
December 1945 .... ...... 5.109,360
January 1946 ....... .. 5,215.222
February 1946
.... 5.097.096
March
1946 ..... .... 5.101.702
.. .. 5.012.062
April
1946.

Reserve city banks

T ime
128 4.639
380.585
451.887
452.353
457.348
465.564
472.155

Country banks

G,,,,,,,
G_
demand
Time
demand
Time
11.709.275 1175.621 51.582.977 1108.918
2,030.429 242.778 2,008.838 137,807
2.634.1130 285.371
2.474.730 166.516
2.681.476 286.583 2.633.m 165.770
2.620.309 293.575 2.476.787 163.773
2.592.431 296.725 2.509.271 168.839
2,520.721 300.908 2.491.341 171,247

SAVL'!GS DEPOSITS
April 30 , 1946
Number
reporting

Num~r of

Beaumont •.......••.....
Dallas ......•.. . .• ••• ...
El Paso .... , .....• • ••.••
Fort \Vnrth ....... .. . . ...
Galveston ..•.....•• • • • .•
Houston ... ...... .• • •.• . •
Lubbock ....... .... " •••.
Port Art.hur ....•..• . ...•
San Antonio ..... . ..
Shreveport, La ....•.
Waco ........ , ...
Wichita Falls. "
All other.

3
8
2
3
4
8
2
2
5
3
3
3
57

saVlOg.9
depositors
12,542
129.309
28,799
40,114
23,979
94.958
907
6,116
35.907
33.232
iI,3Il
7.200
60,478

Tot.al

103

482.912

banks

+ ••••
+ ••••

Percenta.ce change in
savings deposlts from
Amount of
April 30.
March 30,
savinp
deposits
1945
1946
S 7,782.012
.4
J6.3
+
70.478.557
+ 26.2
+ 1.7
22.903.307
+ 33.7
1.4
+
31 .704.351
+ 22 .7
+ 1.3
19.890.800
+ 17 . 7
.7
+
64.034,6] 7 + 16 .3
.7
+
2.507,072
+340 .0
+141 .•
5,496,910
+ 19.7
.4
+
.9
42,185.063
+ 23 . 1
+
25,654,108
.2
+ 21.9
+
8,851.286
+ 25.7
+ 1.6
4,744,356 + 13.7
.7
+
49.968,494
+ 22 .3
+ 1.3

1356,201,563

+ 22 .8

1.5

INDUSTRY
The rate of crude petroleum production in this district during April increased 9 per cent over March to a daily average
of 2,298,000 barrels. This was only 47,000 barrels per day less
than during April 1945, when the nation was still engaged in
a two-front war. Production outside the district during April
increased only slightly, as compared with the preceding month,
to a daily average rate of 2,435,000 barrels. Stocks of Eleventh
District crude declined fractionally during the five weeks period ended May 4, to 111,002,000 barrels, while stocks outside
the district declined 2 per cent. As of the first week end in
May, United States crude stocks stood at 221,911,000 barrels,
representing a very slight increase over the same date last year
but a decline of about 7,000,000 barrels below the figure for
early March of this year. This decline in stocks, in the face of
increased production, reflects the rising demand for both gasoline and residual fuel oil.
District crude runs to refinery stills during April averaged
1,415,000 barrels daily, an increase over the March rate of
3,000 barrels per day, which was offset by a decrease outside

MONTHLY BUSINESS REVIEW

the district of 9,000 barrels daily, leaving the total for the
nation practically unchanged. For the first time since early
October, gasoline stocks for the nation as a whole have declined
substantially in recent weeks, reflecting a seasonal increase in
demand. The decline, amounting to 6,500,000 barrels since
March 30, brought total United States gasoline stocks down to
98,158,000 barrels on May 11. This total, however, is 9,200,000
barrels larger than the figure for a year ago, when gasoline
was still under rationing.
The rate of production and shipment of Portland cement by
Texas mills gives indication of the expanding program of
civilian construction, both residential and non-residential. Production at these mills increased sharply during March to 998,000 barrels, a gain of 35 per cent and 73 per cent, respectively,
over February 1946 and March 1945. This was the highest
production for March on record and the highest for any month
since December 1943. Shipments, likewise, increasing 32 per
cent over the previous month and 79 per cent over March
1945, rose to 1,072,000 barrels, the highest March figure on
record and the highest monthly figure since August 1942.
Excess of shipments over production in two consecutive months
reduced stocks at the mills at the end of March to 595,000 barrels, the lowest point since November of last year. The high
levels of both production and shipments and the decline in
stocks clearly reflect the strong current demand.
Construction contracts awarded in this district during April
increased 10 per cent over March to a total of $68,518,000,
according to F. W. Dodge Corporation reports. This is the
highest total of awards attained since the spring of 1942, when
construction was geared to the war program, and exceeds April
1945 awards by 119 per cent. Residential awards increased 24
per cent above the March 1946 total, to an all-time high of
$35,945,000. An indication of the dominant price type of residential construction now under way in this area is found in
data compiled by the Texas elmtradar, which shows that 82
per cent of the residential awards in Texas during April were
for one-family dwellings costing $7,000 or less, with a perunit average cost of $5,375 .
Significant, aiso, for residential construction was the final
enactment of national housing legislation which includes a
provision for $400,000,000 to subsidize increased production
of building materials in an effort to stimulate the flow of materials to building sites. It also authorizes an increase of $1,000,000,000 in government funds for insuring home mortgage
loans; continues the priorities and allocation authority of the
Civilian Production Administration to December 31,1947; provides for price ceilings on new houses; gives veterans preference in procurement of new housing for ownership or tenancy;
and confers upon the housing expediter broad authority to channel the flow of materials and to issue or~ers to other government agencies relative to adjustments of building material
prices.
The Southwest, due to its supply and extensive use of petroleum products for power, has been relatively fortunate in
the industrial and transportation crisis brought on by stoppage and temporary resumption of coal production. Coal consumption in this area being limited, it is difficult to appraise
the impact of reducel coal production upon industry and business in the Eleventh District. The effects are indirect. Nevertheless, the industrial and economic interdependence of all
sections of the United States is well understood. Even though
only a few of its processing or assembly plants have been closed
and only a few thousand of its workers made idle, this district
is not immune to the creeping paraJysis of industry and transportation engendered by a disruption of output in the basic

coal industry, Anticipated expansion of employment is postponed, if only because of apprehensiveness; completion of partially fabricated products or of houses under construction is
held up because some vital items are unavailable; and oil-burning locomotives of the Southwest haul diminished loads because coal-burning engines on connecting 'lines from the East
and North remain idle for lack of fuel.
COTTONSEED AND COTTONSEED PRODUCTS
United States---

Toxa.
August 1 to April 30

Cottonseed received at mills
(LollS) . . . . .... . ..... . ..... .
C:lUotllleCd crushed Ctons) .. ...
Cot.tonseed on haud April 30

This season

August 1 to April30

This season
3,084,004
3,061,791

Last season
931,279
830,820

618,851
681,262

La.st SCt\OOD
4,252,284
3,774,102

21,788

132,105

240,561

589,788

205,123
315,302
158,497
214,S06

(tons)

254,114
392,925
194,005
253,431

953,722

1,169,525
1,733,412
874,373
1.105,289

Production or products:
Crude oil (thousand lhfl.).
Cake and meal (tons) . .
Hulls (toW!)
.
Linters (running bales) . ..

Stocks on hand April 30:
Crude oil (thousand Ibs.).
1.848
Cnke a.nd meal (tons) .. ..
12,236
Hulla (tona) ... . ... . ....
6,144
Linters (running bale.s) .. .
8.123
SOURCE: United Statee Bureau of Census.

1,347,715
734,438
928,640

8.879
27,249

40.818

19,238

29.S02
106,183
6Q,454
78.092

12,898
48,616

21,121

57,061

DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(Bales)
August 1 to April30
April
April
March
This season Last senson
1946
1946
1946
Consumption at:
17,656
15,282
17,854
147.296
141.S08
Te~mi lls . ......
813,732
769,209
803,937
6,171,882
1,278,600
United States mills,
U. S. stocka-end of month:
In consuming eetabm 'tl; . .. 2':181.882
2.188,220
Publio 6tg. &: compresses .. 1,605,101 11.625.486
CRUDE OIL PRODUCTION- enanel,)
Increase or decrease in daily
average production (rom

.o\pri!1940
Dailyavg.
production
production
1,189.100
239.651
481.443
14,623.300
15,054,700
601.824
9,513.400 I
319.113
14,OSO.900
469.363
Total

Noreb TuM ....... .
West Texaa .... , ..
Eaat Tems . . , ... .
Southwest. Tems . .. .
T CX88

CORStal. , ... . . .

April 194 6
603
2,444
- 19,816
- 3Ul0
- 95,757

MlUch 1946
+ 11.135
+ 46.153
+ 55.012
+ 24.481
+ 42.124

2,813,850
2,5£5,800

2.011.400
95.195
85.527

-W .890
8,921
+ 14,426

+ 179.565
7
+ 2,612

65,961,650

2,198,722

- 146,386

+ 182.230

60.522.000

Tab! Texas . . .

New Mexico . . .
North Louisiana
Total District... .. .

SOURCE: Estimated from American Petroleum Instituw weekly reports.
BUILDING PERMITS
April 1946

Abilene . ...
Amarillo . .
Austin . .....
Beaumont . . .... , .

g~If:~ ~~.r~t~: :: :

EI Paao ..........

Fort Worth" .... .
Galveston .... ...
Houston . , ....... .

I.. ubbock .. .......

PJrt Arthur . ..
San Antonio . .....
Sh re~' eport,

La .. ..

\Vaco .... .. ..... .

Wichita Fall.!. , ...
Total

No. Valuation
159$ 460.178
210
006,0 71
379 l,M8,1l6
211.136
216
661,985
236
1,391
4,295.400
286,338
96
624 2.07{l,378
136
155,766
741
4,219,706
162
300,69~
172
115.7 5
1.278 1.829.732
295
511.3G8
144
37!l,56li
2V2.13~
66

-----

. . . 6,325117.862.364

Percentage change
PercenUlge
Jan. 1 to Apr.30,1946 change
valuation from
valuation
Apr.l945 Mar.IU46 No.
Valuation from 1945
-32
433 I 2,282,950
- 45
3,280,320
899
+457
+48!
-14
1,703
6,538,795
+862
-02
1,274,247
945
+218
+146
1,058
3.621,8.)9 +356
-68
+174
-3.
5,352 21.400,020
+s66
+0'2
1.313,091
419
+507
+4SO
- '8
2,577
10,505.055 +'09
-41
+282
-55
444
b72.534 +200
+190
-73
2,058 33.'38,374
+314
+258
835
2.040,8u3 +258
+126
-00
928,410
- 61
751
+546
+74
,,893
11.0211256 +533
- 61
+322
-76
1.349
4,USiJ,77!
+470
+241
-21
533
+398
+5t6
1.357.'53
+76;
295
b93.727 +731

- 56

+360

----~6.444 ~lv { ,71t.5M

+169

-Over I.Coo per cell t.
VALUE OF

CJ~STnU C TIO~ co~n
(ThollSand~

Eleventh District- total..

Residential.

leT'; .IIV 11{:)"V

of dollars)

April
1916
$ 6g,51S

April
1945

March
1946

$ 31,242

$ 132,214

3S,!)45

3,263

All other.
32.573
21,970
United States"-total..
734,911
395.79B
Residential.. . . . ...
370,gro
42,745
All otheL..
363.961
353,053
·37 states east of the Rocky Mountains.
ROURCE: F. W. Dodge Corporation'

28,954
33,260

697,593
275,2-41
422.352

Jan. I to Apr. 30
1946
1945
203,363 $ 102,292
&i,23g

7,775

110,124
2.171,;04
831,985
1,330,419

0',511
1,012.518
108.524
904.064

MONTHLY BUSINESS REVIEW

JUNE I, 1946

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve Sl"ltem)
IN!IOSTItIAl. PftODUCTIOM

Industria l output declined somewhat in April and the early part of May owing to the coal strike,
Emplo}'ment in [he economy as a whole. however. continued to expand in April. The value of retail
trade was maintained at record levels and commodity prices rose further.

INDUSTRIAL PRODUCTION

W ~i~\W
ftfi+4 -i ft

.....

_
II"

Federal Reserve iudex. Groups arc expressed in terms
of points in {he tol~l index. Monthly figures, latest

shown are for April 1946.

..
- .-

EMPLOYMENT IN NONAGRICULTURAL ESTA8USHNEKTS
1Ol.l. .....

"'H.

I...LL ,~I\
V
l.

,
-•

~O/

.I I TrF-

P ~ '"T

lf-

,
"

[-'I

WHOLES~LE

PAICES

_ f·1M

II.

J~""~'L

13.

;:....r "-i"

The number of passenger cars and trucks assembled in Aptil was 80 per cent greater than in March,
and there also were substantial incre:lses in activity in the railroad equipment industry and in output
of many types of electrical equipment, Production of lumber :and stone, clay, and glass products was
maintained at the March level. which was above the same period last year.
Output of most nondurable goods w:as maintained in April at about the March level. Activit}' at
co t ton mills declined slightly, owing to reduced coal supplies. but output at other textile mills advanced
further. The number of animals slaughtered under Federal inspection continued to decline sharply in
April. Output of fl our and bakery products decreased somewhat in April and is expected to decline
substantiall y in Mayas a resu lt of the stringent whe:at supply ·situation.
Minerals production declined by a fourth from March to April. reflecting primarily the drop in
bituminous coal output. There was also a further reduction in output of metals, while crude petroleum
production increased in April and e3rly May. On Ma y 13 bituminous coal production 'was resumed
under a temporary 'liIlOrk agreement, and during the week ending May 18 output was 70 per cent of
the pre-strike weekly rate.

EMPLOYMENT
Nonagricu ltural employment continued to gain in April notwithstanding the bituminous coal
strike. and unemployment decreased by about HO,OOO. Manufacturing employment rose by about
400,000 largely because of settlement of major labor disputcs, and construction employment showed a
further large gain.

COMMODITY PRICES

~~,,,.lOM'~1 ,
1 1

"•

. Production of dura ble manufactures as a group r ose 3 per cent in April. Iron and steel production
declined about 6 ~r cenci decreased output of pig iron and open he-art h and bessemer steel was partiy
offse t by a sharp rise in electric steel productiol1. In May activity at steel mills continued to decline as
, a result of coal shortages and during the past two weeks has averaged only :about so per cent of capacity.

Vaiue of construction contracts :awarded rose sharply in April, according to reports of the F. W.
Dodge Corporation. The increase reflected a very large expansion in awards for private residential con~
struction to a record level ; awards for most other types of private construction were main taine-d. at
recent high levels.

HI~

Bureau of Labor Statistics' estimates. adjusted for
seasonal variation by Federal Reserve. " Other" includes transpo.uation, public utilities1 finance,
service and miscellaneous. Proprietors ana domestic
workers excluded. Latest month shown is April 1946.

..,

The Board's seasonally adjusted index of indwtrial production declined 2 per ccnt in April and
was at 164 per cent of the 1935-39 average. The drop in coal output after April 1 and the resultant
curtailment in operations in some industries were offset in part by substantial increases in activity in
the automobile and electrical machiner}' indus tries following settlement of wage disputes in the latter
part of March.

Price cei lings on gra ins were increased su bstantially on May 13 and ceilings for a number of non~
agricultural products have also been raised during the p:ast month. Recent price increases for industrial
products haye usually been between 10 and 20 per cent. Recent advances announced for automobiles
were smaller than t hese amounts but they were in addition to price increases made earlier this year.

OTlI[R·

Retail prices of most groups of commodities continued to show small advances in April and the
consumers' price index increased Yz per ccnt to a point 3 per cent higher than in April 1945.

,.q
~/
'~J.;
~
~
,

_-- -

Bureau 01 Labor Statistics' indexes. Weekly figures.
lacest shown arc for week ending May 18. 1946.

GOVERNMENT SECURITY HOLDINGS OF BANKS IN LEADING CITIES
•

... ~or~

""'"-1. . . .

- ,....

,./

.r'

-~
,

o
'"~

IMe

"
,

,,~~s h1

i'"-'

r! IriLL: r.;; .......
~v.",

'-..

»41

IH2

1M3

1944

1945

&46

.Excludes guaranteed securhies. Data not available
prior 1"0 february 8, 1939; certificaces first reported
on _~pril 15, 1942. Wednesday figures. latest shown
ace for May 15.1946.

DISTRIBUTION
Retail sales continued at a high rate in April and the first half of May. During the past four
weeks department store sales have been one-third luger in value than in the corresponding period
of 1945.
Freig ht carloadings declined sharply in April, reflecting chiefly the drop in coal shipments. Shipments of most manufactured products continued to increase until the week ending May 18. In that
week interruptions in freight set vice resulted in large decreases in loadings of manufactured products
but bituminous co.. 1 shipments were resumcd, and tota1loadings increased slightly.

BANK CREDIT
Treasury depOsits declined, reflecting disbursements in excess of receipts, and depOsits subject to
reserve requirements increased during April and the first three weeks of May. Reserve balances increased
less than required reserves, and excess reserves declined to about 700. million dollars on May 22. Federal
Reserve holdings of Govcrnment ~ec urities, which declin ed substantially in the earl y months of the
}'ear, have increased somewhat since the middle of April.
Member bank holdings of Treasury bills. certificates, and notes declined in April and the :first half
of May, while holdings of Treasury bonds inc reased further. Loans at member banks in leading cities
declined, reflecting largely reduc tions in loans for purchasing and carrying Government secu rities .
In the latter part of April the Reserve Banks. with the approval of the Board of Governors, eliminated the wartime preferential discount rate of about one-half of one per cent on advances to member
banks secured by Government ob ligat ions due or callable in not more than one year. The regu lar discount
rate on advances sec ured by Government obligations or eligible paper remains at one per cent,
Yields of Gover nm ent securities, which declined in the early weeks of the year, rose sharply in the
latter part of April and early in May.

MONTHLY BUSINESS REVIEW

FEDERAL RESERVE BANK OF DALLAS
COMPARATIVE STATEMENT
(IN THOUSANDS 0P' DOLLARS)

ASSETS
INCREASE (NO SIGN) Oil
DECllEASIt (MINUS SIGN) SINCIt

May 22
1946

May 15
1946

May 23
1945

Gold Certificates on hand and due from U. S. Treasury_ _
Redemption Fund for F. R. Notes _ __ ________
__

453,993
25,801

3,750

-60,197
5,804

Total Gold Certificate Reserves _ _ _ _ _ __

479,794

3,750

-54,393

Other Cash

9,149

836

619

Discounts and Advances __
Industrial Loans_________ _

2,584

U. S. Government Securities:
Bills_
----------------Certificates _________________________ _
N otes _______________ _
Bonds _________________ _
Total U. S. Govt. Securities_
Total Loans and Securities __________
Due from Foreign Banks_
F. R. Notes of other Banks ___________
Uncollected items______________________ _
Bank premises_______
---- -------Other assets___ _
Total assets ______ __

504,850
268,337
73,618
38,242
885,047
887,631
4
3,960
88,870
817
2,616
1,472,841

2,384

-15,055

112,847
21,882
29,986
-10,155
154,560
156,944
1
687
15,683
56
154
118,093

275

25,544

2,762
5,702
732
914
8,282

88,828
- 5,779
-14,350
1,167
69,866

6,594
24
-15,127

18,137
57
113,604

902
4,645

-11,200
367

-10,833
-10,833

149
7,181
194

LIABILITIES

F. R. Notes

588,553

Deposits:
Member banks-reserve account______________
_
U. S. Treasurer-General Account_
_________
ForeigIL--_ _____ _
Other deposits
Total deposits _ _ _ _._ _ _ _ _ _ _ __

744,504
16,928
19,965
2,395
783,792

Deferred availability items
Other liabilities including accrued dividends_______ _
Totalliabilities ______________
____
__ _

78,233
504
1,451,082

CAPITAL ACCOUNTS

Capital paid in __________ _____________._.. _ _
_
_ ...... ........... _
................--.......-.... .
Surplus (Section 7) _ _______________ ....................... _
__
........... _ --...... -..._.
..
Surplus (Section 13b) ....... _._ ......... _
..........__ ............. _ _ -.. --.... .
... ......
Other capital accounts_ _ ......... _
... ____
........... _
.......... _ _
... ..........-... -.....
Total Liabilities and Capital Accounts _____
Commitments to make industrial loans

6,589
10,670
1,307
3,193
1,472,841
170

64
-15,055

1,058
118,093
30

Full text of Review (Federal Reserve Bank of Dallas) : June 1, 1946

FRASER