Full text of Review (Federal Reserve Bank of Dallas) : March 1, 1945

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MO

of the
Volume 30

HLY BUSINESS REVI EW
FEDERAL

RESERVE

Dallas, Texas, March 1, 1945

DIS1'RICT SUMMARY
Consumer buying al! department stores in this district, although declining seasonally from December to January, was
maintained at a high level. January sales were :lbout 23 per cent
Jarger than in the corresponding month last YC:lr, which is somewh~r higher than the average increase of 18 p.er cent registered
durmg 1944. Daily average production of crude petroleum increased fractionally during January and was 10 per cent above
c.har a year earlier and oo1y 2 per cent under the record establi.shed in September, 1944. Well completions in January continued at about the same rate as in other recent months and
were 35 per cent greater than a yea.r ago. The value of construction contracts awarded, after having risen sharply in
December, declined about 50 per cent in January, but Government approval of several large war projects in this District
suggests an increase in awards in the near future.
Rains throughout the District since the first of the year have
been beneficial to ranges, small grains and other growing crops,
but hnve retarded winter plowing, which is behind schedule in
fian y a~c:ls, and interfered with harvesting of crops still in
elds. Livestock have wintered in good condition.

I

I?eposits of weekly reporting member banks declined sharply
dUring the five weeks ended February 14. These withdrawals
were met chje£ly through reductions in balances with correspondents and with the Federal Reserve Bank and through decreases in loans and investments.

BUSINESS
Department store s:lles in January represented a greater than
usual seasonnl decline from the peak sales of De.cember, but
were 23 per cenc larger than in J:lnuary, 1944. Despite the cremendolls sales in February of 1943 and 1944, indications from
whcekly reporting firms are that February, 1945 snles will exceed
t ose of laSt year by approximately 15 per cent. During the
2-wcek period cnding February 10, sales of weekly reportiDIl
firms were 18 per cent above those for the same period last
year. 'rhe 1':Itio of c3sh sales to total sales, which amounted to
56 per cent during January, reronined at approximately the
same lcvel as in December :lnd Janu:lry, 1944. Dollar value of
Stocks at the end of January were 13 per cent above a month
~go, but 6 per cent lower than a yeRr earlier. The contraseasonal
IOc~·ense in January over December reflected the replenishment
of Inventories which had been reduced more than usual in December by the unusually high volume of sales.
. Payments on accounts at department stores continued at a
high level in relation to the volume outstanding. The ratio of
Jaouary collections on reguJar accounts amounted to 65 per
~ent as compared with 66 per cent in December and 65 per cent
In January last year.
. The sales of reporting furniture Stores in this district, which
ed
Incr~as substantially during the last five months of 1.944,
dec1med seasonally in January from the December volume but

BANK of Dallas
Number 1

furniture firms had approximately II six months' supply based 00
sales during the month, whereas at the end of the same month
in 1945 the available supply on hand would last only four
months. The ratio of cash sales to total sales increased from 23
per cent during January, 1944 to 25 per cent in January, 1945,
reflecting a continued larger rate of increase in the trend of
cash sales as compared with credit sales.
According to Dun and Bradstreet~ Incorporated, there was
one business failure in the Eleventh Federal Reserve District in
January with total liabilities of $10,000. This is the £i.rst reported business failure in this district since September, 1944.
AGRICULTURE
Light to heavy rains which fell throughout most of this
district during January and the first half of February, delayed
winter plowing and the harvesting of crops still in the fields,
but brought about a further improvement in the moisture situation which will be favorable to small grains and spring planting
operations. Range feeds and pasturage are reported to be in good
condition in aU but a few scattered are:ls and the comparatively
mild temperatures have been beneDci:ll to livestock. Moreover,
wheat pasturage which had suffered from December freezes has
recovered and is now much more favorable than last year. Supplies of most protein and other supplemental feeds are also
larger than a year ago.

Stocks of whe.1t in interior Tex:ls mills on January 1, 1.945
were estimated by the Deparcment of Agriculture at 10,500,000
bushels, as compared ~ith 6,975,000 bushels a year earlier and
5,811,000 bushels for the 9-year (1.935-1.943) average. Farm
stocks of wheat on Tex.1s farms on January 1 were estimated
:1L 16,440,000 bushels, or more than double the stocks held on
farms the same date laSt year, and the highest for that date of
any of the 14 years that the data :Ire available. Farm stocks of
oats, estimated at 15,440,000 bushels, while nearly double the
stocks held on January 1 last year, are slightly below the 10-year
(1934-1943) avernge. Hay stocks, estimnted at 1,150,000 tons,
exceed those held last year by 156,000 tons. St«ks of barley,
estimated at 3,234,000 bushels, were nearly three times larger
than a year earlier and approximately 41 per cent greater than
the 5-year (1939-1.943) average. On the other hand, corn
stocks on Texas farms were estimated at 33,587,000 bushels, or
9,293,000 bushels lower than stocks reported on January 1,
1944 and 7,228,000 bushels under the 10-year (1934-1943)
:lverage.
Favorable moisture supplies and the comp:lratively mild temperature prevailing in Texas during January and early February
proved very beneficial for most growing crops in all of the
commercial vegetable areas, although widespread rains early in
February retarded harvesting operations in the Rio Grande
Valley and the O>astal Bend district. Cabbage, carrOt and beet
crops progressed rapidly and supplies at times exceeded the
current market demand. The onion crops in all south Texas

~;:~~s3~t~~ec:~~
a~tja:~srye a:n:a~ apg~ ~~et d~ilgl~rv:~a:o! sprmg
*;sct~r~;e
i~=g afv:~:~~g~es:, ~~ ~~~~:~;~~~i:~r~~
h
crop tom..'ltoes, green corn and potatoes in the Rio Grande
mont ago, bun was 6 per cent lower than a year ago. With VaUey is now indicated as these crops have progressed rapidly.
sales showing an upward trend and stocks evidencing a down- Insect and mold damage to advanced crops has been reported
ward trend, the gap between furniture sales and stocks con- from some areas, with the early spinach crop being the most
tinues to grow wider. At the end of January, 1944, reporting seriously affected. The cabbage crop made better than average
This publication was digiti?,ed and made available b the Federal Reserve Bank q[Da//as' Historical LibraryJFedHistory@daLfjf!J.rgl_ _ __

MONTHLY BUSINESS REVIEW

2

progress in late January and early February with plentiful supplies of excellent quality cabbage available for an activ~ movement for several weeks. Total production in Texas, however, is
expected to fall 25 per cent below that in 1944 due to the
smaller acreage. Carlot movements of vegetables which had
increased substantially during the first half of January, declined
sharply during the last half of the month due to a freight embargo. In consequence of this decline, total shipments for the
season to the end of January were below those during the same
period of the previous season. Weather conditions have been generally favorable for citrus crops and the fruit being harvested
is of good quality. Cadot movements of citrus fruits for the
period October 1 through January 31 this season were approximately 22 per cent above those for the same period last season.
Production of honey in Texas during 1944 is estimated at
approximately 6,572,00 0 pounds, which slightly exceeded the
production in 1943 and was about 6 per cent greater than the
5-year average. Production of beeswax in 1944 remained at
about the same level as in 1943, but the 150,000 pounds produced was almost double the. 76,000 pou1'lds produced in 1941.
Rains in practically all parts of the district have greatly improved range feeds and pasture grasses and range conditions are
a'hove average in all major areas. Range conditions in Texas on
February 1 were reported at 81 per cent, as compared with 73
per cent a year ago and 76 per cent for the 20-year (19241943) average. Old grass is still available in most areas, although
excessive moisture has caused some deterioration in central and
eastern districts. Moisture conditions and mild temperatures
have been favorable for the rapid growth of weeds and winter
grasses, which are supplying considerable feed. Oat pastures are
improving and the wheat pastures, which had been retarded by
December freezes, have recovered and will provide good grazing
during the month. Due to the generally improved condition of
pastures and ample supplies of supplemental feed, livestock
are expected to come through the season in good condition,
unless the remainder of the winter is unusually severe. The condition of Texas cattle and calves in the State on February 1 was
reported at 80 per cent, as compared with 73 per cent a year
ago and is one point above the 20-year average. The February 1
condition of Texas sheep was reported at 84 per cent, which is
4 points higher than a year earlier and 2 points above the average.
Sheep have wintered well and with ewes reported in good condition, early lamb prospects are favorable.
During January, receipts of cattle, calves, hogs, and sheep at
the Fort Worth and San Antonio markets declined moderately
from those in the previous month. The total movement of
cattle, calves, and sheep exceeded the relatively large numbers
reported in January last year, but hog receipts were about 45
per cent smaller.
Mid-January prices received by Texas farmers, as reported
by the Department of Agriculture, showed slight gains for
wheat, corn, oats, barley, grain sorghums, rice, Irish potatoes
and sweet potatoes; prices for citrus fruits declined slightly.
Prices for beef cattle, veal calves and sheep increased during
the month. Prices received for all meat animals were higher than
on the same date in 1944. A seasonal decline was shown for eggs
but current prices are about 4 cents a dozen higher than those
prevailing in January, 1944.
FINANCE
The reserve balances of member banks in this district declined
gradually during January and the first part of February as
heavy withdrawals were made from war loa~ accounts. Total

reserve balances on February 15 amounted to $608,000,000,
which is $13,000,000 lower than a month earlier and $35,000,000 lower than the all-time peak of $643,000,000 reached
at the end of 1944. Reflecting the sharp decline in reserve-exempt war loan accounts and an increase in private deposits,
which require reserves, the required reserves of member banks
increased substantially during January and' excess reserves declined.
After the turn of the year, there was a substantial seasonal
return flow of currency from circulation, which was augmented
to some extent through the use of currency by individuals in
CASH FARM INCOME
(Thousands or dollars)
,...-Oetober 1944- y - - - - - T o t al reeeipts,- - - - - - - .
,...-Reeoipts rrom _____ Oetoher Oetobor
Jon. I to Oct. 31
Crops Livestock1944
1943
1944
1943
Arizona . ............. , . . S 3.724 S 3,03a S 7,357 $ 12,735 S 98,505 S 102,863
Louisiana .. . . . .. . . . . . . ..
37,840
4,515
42,301
30,873
101,022
102.220
0,532
14,934
New Mexico ......... ....
21.400
22,783
70,730
70,946
Oklahoma ..... ... .......
37,994
24,858
62,852
45,243
388,820
307,480
ToxllS ....... . ........... 124,785
50,355
181,140
170,900
942,012
900,990

------

TotaL , .. ..... $210,88 1 $104,295 $315,170 $291,000 $I ,602,589 $1,550,51 \
"Inoludes reeoipts rrom tho sale or livestock and livestock products.
SOURCE: United States Department or Agriculturc.

CASH FARM INCOME
(Thousands or dollars)
-Novomber 1944
Total reccipts---Receipts rrom~ Novembor Novembor Jan. 1 to Nov. 30
Crops Livestock1944
1943
1944
1943
Aril,O'.lR. ...... , ..... . , .. . S 5,473 $ 4,418 $ 9,801 $ 13,609 S 108,300 $ 110,472
LOUismnn ..... ...... . ... .
42,007
5,901
47,908
37,789
209,830
200,000
New Moxico ............ .
7,183
12.260
10,449
27,321
90,179
104.267
Oklahoma . ... .......... .
31,814
20,043
51.857
40,658
440,677
354,130
Texas .................. . 104,303
52,522
156,825
141,145 1,099,437 1,048,141

------

Total. . .. .. ... 8190,780
$95,150 $285,930 $266,517 81,048,519 $1,823,028
"Inoludes receipts rrom the salo or livostoek and livestook products.
SOURCE: United State3 Dopartment or Agriculture.
LrVESTOCK RECEIPTS-(N umber)
- - - F o r t Worth
San Antonio - - January January Deeomber January January Dcoomber
1945
1944
1044
1045
1944
1944
Cattl . . .................. 02,892
46,294
71,761
20,634
10,000
20,420
Calves ............... ... 39,005
28,380
22,775
19,170
40,300
28.953
70,147
131,943
12,334
79,292
14,138
20.062
: : : : ::::: : : : : : : 93.963
60,419
85,122
23,952
14,259
26,434

~hoe~~:.'::

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars por hundred woight)
- - - F n r t W o r t . h - - - - - - San Antonio - - January January December January January December
1945
1944
1944
1945
1944
1944
Boor .teer............... . $16.00
$J4.60
$15.00
$14.00
$12.60
$14.00
Stookcr sterrs .......... . .
Hoirers and yonrlinas .... .
14 .25
H.OO
Buteher cows ........... .
11.00
12 .00
11.50
11.50
11.00
12.75
Calves ................. . 14.2fi
13.50
14.00
14.00
13 .50
13.50
Hogs ................... . 14.55
J3 .65
14.55
]4.55
13.55
14.55
Lamb! ....... . ......... . 15 .00
14.75
14.00
13.85
12 .00
13.00

it~

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'i:i:so

COTTONSEED AND COTTONSEED PRODUCTS
----TOXll8---~--United

August 1 to January 31
This season
Last season
868,831
877,433
586,892
742.190

Cottonseed reeeivcd I,t mills
(tons) ............ . ....... .
Cottonseed erushed (tons) . ... .
Cottonseod on hand J.In. 31:
(tons) ............ . ....... .
313,585
Production or produet·;:
Crude oil (thousand Ibs.) ... .
176,070
Cako and meal (toaD) ... ... .
276,668
Hulls (tons) .............. ..
137,516
Linters (running balos) ..... .
180,752
Stooks on hand Jan. 31:
Crude oil (thousand Ibs.) . . . .
13,898
Cako and meal (tonu). . . . . . .
21,842
Hulls (tons)................
21,006
Linters (running bnlos) . .. .
as.092
SOURCE: Unitod States Bureau or Census.

Statos-August 1 to January 31
This season
Last season
3,931,005
3,744,564
2,696,113
2,905,815

170,912

1,345,379

928,025

220,783
340,790
174,623
222,788

828.176
1,235,111
623,862
787,232

897,336
1,341,422
675,865
864,713

16.930
17,775
8,606
90,367

55,888
84,326
50,828
J28.3J8

50,224
72.063
25,018
310,387

DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(Bales)
January
Dee.
August 1 to January 31
January
Consumption at:
1945
1044
1944
This season Last season
Texas mills.... ...... ....
16,161
17,006
13,770
OS,340
105,488
Unitcd Staw. mills. ... ...
849,945
818,724
760,740
4,877,181
5,091,116
U.S. stooks-cnd or month:
In oonsuming estabm·ta... 2.201,251
2,380,963
Publio stg. &: eompress08 .. 12,991,042 12,114,990

MONTHLY BUSINESS REVIEW
the payment of their January income tax instalments. In consequence, the circulation of Federal Reserve notes of this bank
declined about $12,000,000 during the first twenty-five days
of the month. The subsequent demand for currency to meet
business and military pay rolls and other requirements increased
total circulation on February 15 to a new peak of $547,300,000,
which was slightly higher than at the end of 1944.
The deposits of weekly reporting member banks in this district, which had increased sharply in December, declined $66,300,000 during the five weeks ended February 14. During this
period, these banks had withdrawals of $33,600,000 from Government accounts and of $37,300,000 from interbank deposits.
These withdrawals were offset only in small part by an increase
of $5,3 00,000 in time deposits. The funds to meet this decline
in deposits were obtained principally tlu'ough a decline in loans
and investments of $2 6,900,000 and from reductions of $20,600,000 in balances with correspondent banks and of $16,600,000 in reserves with the Federal Reserve Bank.
. During the past 5-week period, the weekly reporting member
banks reduced' their investments by $21,0'00;000. This reduction
Was accomplished through decreases of $20,000,000 in holdings
?f Treasury bills, of $8 ,900,000 in holdings of certificates ~f
I11debtedness and $6,300,000 in holdings of guaranteed secunties. On the ~ther hand, these banks added $9,000,000 to holdings.of Treasury notes and $6,300,000'to the holdings of Government bonds, indicating a continuance of the tendency to
shift holdings of Gorvernment securities to those with longer
maturities.

s

of 1940, production of cement at Texas mills showed an upward
trend, reaching a peak in 1942 when the construction of war
facilities in such large volume was under way. In the spring and
summer of 1942, when numerous projects were being started,
shipments of cement from Texas mills exceeded production by
a wide margin, reducing mill stock to a very low level in August
of that year. However, stocks were soon increased to about their
former level as production was maintained at an amount somewhat in excess of demand for several months. After the spring
of 1943, both production and shipments of cement declined
sharply, reflecting the gradual completion of the huge construction program inaugurated in the preceding year. In 1944,
the Texas mills operated at a rate of only 43 per cent of capacity,
~, nd the total output of 6,160,000 barrels was about one-half
rroduction in 1942 and at the lowest level since 1936. While
~tocks of 1,010,000 barrels at the end of 1944 were about 11
per cent below the peak volume a year earlier, they amounted
to more than a two months' supply at the current rate of shipments .
AORTLAND. oGEMENT STATISTICS· TEXAS MILLS

The loans of the reporting member banks showed a net decrease of $1,500,000. Al though "all other" loans showed a
further rise of $4,200,000 over the period, this increase was
more than offset by decreases of $7 , 6 0 0, 0 00 in loans for security
trading and of $1,000,000 in commercial, industrial and agricultural loans, which ordinarily decline during the early months
of the year.

INDUSTRY
The value of construction contract awards in the Eleventh
I?istrict has fluctuated considerably from month to month
Sl11ce the peak year o,f 1942, but the general trend has been
downward, reflecting the effect of the completion of large installations for war purposes and the shortages of labor and
critical building materials, which have curtailed virtually all
types of nonwar construction. In December, 1944, when contracts were awarded for several large war facility projects,
total awards rose to $29,894, 000, the highest for any month of
that year. Altllough awards in January this year dropped to
$15,233,000, or about 50 per cent below December and 9 per
~ent below January last year, it appears that construction activity may increase substantially. In recent weeks the Press has
announced War Production Board approval of several large
projects, including the following:
Hughes Tool Company, Houston, Texas ................ $ 6,000,000
Rheems Mfg. Company, Houston, Texas.. ..... _....... 3,125,000
Kelly-Springfield Tire Co., Houston, Texas ........... 6,000,000
Cactus Ordnance Works, Dumas, Texas... _............ .
500,000
Monsanto Chemical Campany, Karnack, Texas.. .. .. 8,000,000
Refinery, Winnie, Texas........... _.................... _...... . 4,000,000
DuPont Corporation, Orange, Texas .......... _......... 22,000,000
HOiUston Oil Field
Material Company, Houston, Texas.......... _........ 1,250,000
T otaL.... _.. _.. _......_.. _...... _............ _.. _....... $50,875,000
, From the accompanying chart it will be noted that after the
l11auguration of the National Defense Program in the summer

In an effort to meet the problem of increasing the supply of
the more essential cotton textile items for civilian consumption,
the War Production Board recently issued orders which were
(~esigned tOIdivert 75 fer cent of civilian fabrics to manufactw'rrs of medium and popular-priced wearing apparel. The new
J uling provides priority assistance to makers of inexpensive
(otton garments and will enable them to produce some 41 items
that are now critically short in the low price field. As additional
set-aside provisions are scheduled for March 1, civilian consumers should feel the effect of the new orders by early summer.
Mill consumption of cotton at United States textile mills
c!uring January totaled 850,000 bales, representing increases of
12 per cent over the previous month and of about 4 pel' cent
over that in January a year ago. However, total consumption
for the first six months of the 1944-1945 season totaled only
4,877,000 bales, as compared with 5,091,000 bales for the same
period of last season.
According to the War Production Board, the production of
cotton duck and duck substitutes was increased sharply during
December and January, but production in the latter was about
15 per cent below minimum requirements. The most serious
deterrent to expanding production is the lack of skilled textile
workers, but some progress has been made in improving the
situation. Since December 1 about 1,000 soldiers who were
formerly skilled textile workers have been given 90-day furloughs to work in duck mills and mills have also added substantial numbers of skilled civilian workers. In order to bring
production up to requirements, it will be necessary to increase

MONTHLY BUSINESS REVIEW

4

the number of workers on the second and third shifts. The ac<Xlmpanying chart shows the trend of production during 1944
and thus far in 1945.

January, 1945 were about 45 per cent higher than on that date
last year. The experience of cottonseed mills in the United States
during the first six months of the current season was somewhat
similar to that of the Texas mills.

COTTON DUCK AND DUCK SUBSTITUTES

Production of crude oil in the Eleventh District increased
only fractionally during January but the daily average of 2,303,000 barrels exceeded that of January last year by 10 per
cent, and was less than 2 per cent below the all-time peak production rate of 2,333,000 barrels daily attained in September,
1944. Production of crude oil outside this district remained at
about the same level as the previo'lls month and was approximately 5 per cent above the production in January, 1944, reflecting the increased production activity on the West Coast.

PROOUCTION lIS REaulREMENTS

CRUDE OIL PRODUCTION-(llarrel.)
January 1945
Iner8880 or decrease in d3i1y
average produetion from
Total
Daily nvg.
production
production
Jan. 1044
Dee. 1944
North Texas ... .... . .• .......
7,187,350
23 1,850
0,489
+ 1,387
West Tex""' ........ .. ..... . . . 14,836,000
478,000
+ 114,305
+ 0,848
East Texas .... . .......... . . . 10,280,850
525,170
+ 41,305
+12,945
_South Texas ................ . 10,012,850
342,350
+ 49,231
-3,106
552,000
COMtni Texas ........... .... . 17,130,600
+ 32,081
308

Stocks of cotton on hand in consuming estahlishments at the
end: of January totaled 2,291,000 bales, indicating a decrease of
4 per cent from a year ago. Stocks held in public storage and
compresses on January 31 amounted to 12,991,000 bales, reflecting an increase of 7 per cent over that on the same date in
1944.

Although total ginnings prior to January 16, as reported by
the Department of Commerce, were estimated at 2,413,977
bales, as compared with 2,657,166 bales for the same date last
year, cottonseed receipts at Texas cottonse'ed mills during the
first six months of the current season totaled 869,000 tons or
approximately the same as in the same period last year. Stocks of
cottonseed on hand at Texas mills at the beginning of the season,
which amounted to only 31,500 tons, had grown to 314,000
tons by the end of January, 1945, indicating an increase of 74
per cent over the 180,000 tons held on January 31 last year. The
sharp increase in mill stocks resulted chiefly from inadequate
manpower to process the cottonseed which is reflected in a
decline of about 20 per cent in the volume of cottonseed crushed
and in the production of cottonseed products. Stocks of cake
and meal and hulls showed! marked increases and are now much
larger than a year ago, reflecting the decreased demand for those
products on account of the larger supplies of grain sorghums
and other feeds than was the case a year earlier. On the other
hand, stocks of crude oil and linters are considerably smaller
than a year ago due to the heavy demands for these products.
Reflecting the large ginnings, cottonseed receipts at all United
States mills during the first six months of the season were about
5 per cent greater than in the corresponding period of the
previous season and stocks of cottonseed 0111 hand at the end of

Total Texas ... .. . .
New Mexico ... .. ........... .
North Louisiana ............. .

60,057,250
3,108,050
2,138,250

2,130,879
103,182
08,070

--+230,523
- Q,804
8,521

-

Total District...... 71,304,150
2,303,037
+212,198
SOURCE: Estimated from American Petroleum Institute weekly reports.

+17,706
497
- 2,282
+14,927

A record production rate of 5,074,850 barrels daily of all
petroleum liquids had been certified to the various oil producing
states for February, representing an increase of 34,000 barrels
d1aily over that for January, and 23,550 barrels above the
previous record certificatioll1 for September, 1944. The January
certification for Texas amounted to 2,290,000 barrels daily, reflecting an increase over the previous month in sweet crude oil
production of 16,000 barrels daily, which is considered necessary to insure capacity operation of refineries and the War
Emergency Pipe Lines.
Reflecting in part a seasonal slorwing down, drilling activity
in the United States declined sharply in January, but daily
average well completions were about 16 per cent greater than in
the same month a year earlier. On the other hand, drilling
activity in the Eleventh District was maintained at about the
same rate in January as in the preceding three months, with an
average of 20 well completions daily, which compares with an
average of 13 completions daily in January, 1944. Increased
drilling activity in January over a year ago was evidenced by
gains in the north, west and upper Gulf Coast Texas districts
'Of Texas and in New Mexico and north Louisiana. Relaxation
of spacing rules and orders releasing some of the more urgently
needed materials have stimulated drilling activity in recent
months, but more experienced manpower and additional new
equipment will be needed to meet the high drilling goals set
for 1945 by the Petroleum Administrator for War.

MONTHLY BUSINESS REVIEW
MARCH 1,

194~

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(CompIled by the Board of Governors of the Federal Reserve System)
INDUSTRIAL PRODUCTION

f-----1--t--I--t--t--l'20
100
60

40
20

IPl40

1942

1944

1940

1942

1944

Federal Reserve indexes. Groups arc expressed in
ferms of points in the total index. Monthly figures,
atest shown nrc for January, 1945.
DEPAIlTMENT STORE SALES AND STOOKS

-.u. __

,rUetIIT

"._I01.~'''N.n

..

"U -N " M

I~

200

000

I.N 80
!\
'
: ~lN VA
IA":h, ~l :/ \N\ 140
, I

180

I
I

\

' '0
100ES;

V""

00
!U!1

I

•
I

\

160

120

I

IF7

V

I 60

IYOCkI'

120

~ V. --'

---

1939

1039

1940

100
80

1 ~4 1

Factory output continued to increase in January despite severe weath ~ r conditions. Deputment
store sales during the first seven weeks of this year have been 14 per cent above the high level maintained during the same period last year.
INDUSTRIAL PRODUCTION
Total output at factories and mines rose slightly in January and the Board's seasonally adjusted
index was 234 per cent of the 1935 -39 average as compared with 232 in the preceding three months.
Activity in munitions industries was maintained in January at the December rate, although slight
increases were scheduled. In Februnry it was announced that scherlules for 1945 production of aircraft
and army ordnance items had been increased further. Output of open henrth and bessemer steel in
January was at the lowest rate since July, 1942, largely due to severe weather conditions in several
important steel-making areas. Ourput of electric steel, however, which had been declining since the
end of 1943, rose 10 per cent in January, reflecting new military requirements for alloy steel. The
War Production Board early in Fc:bruary ordered a 10 per cent increase in aluminum ingot production
and announced that a Inrge increase hnd occurred in output of aluminum sheet since December 1.
Output of nondurable goods rose 2 per cent in January. Production of liquor and beverage spirit,
increased sharply as a result of the release of distilleries from industria l alcohol production for the
month of January. Output of manufactured food products also ,hawed a gain for the month, re£lecting increases in the canning and baking industries, after allowing for seasonal changes. Activity at meatpacking establishments declined 10 per cent in January and w>s at a rate 25 per cent below the same
month a year ago. Production in the chemical industrie, continued to rise, largely reflecting further
increases in output of small arms ammunition. Activity at textile and papcr mills continued to show
little change.
Output of coal increased in January but the tonnage was 8 per cent less than the large volume for
January, 1944. The production rise was limited by shortages of cars at mines due to congestion in iceclogged northern railroad yards. In the week ending February 10 output of bituminous coal was the
largest for any week since last November.
DISTRIBUTION

1942

1943

1944

h Federal Reserve indexes. Monthly figures, latest
s OWn nrc for January, 1945.
GOVERNMENT SECURITY HOLDINGS OF BANKS IN LEADING OITIES

~.-

-.-~

2°r-----+-----+---4-----t------r--~~1

'" r-----t-----+-----+------r~---_r----~
10 r---~----_4----_+~d--+----=+--~~

Department store sales continued in January and the first hnlf of February at about the same
high level that prevailed in the last quarter of 1944 after allowance is made for the usual slurp seasonal
decline. Value of sales was 14 per ccnt greater than in the corresponding period a year ago, with a
higher rate of gain shown in February.
Freight carloadings increased in the early part of January due chiefly to larger shipments of fuel
and war materials. At the end of January and in the early part of February, however, two short embargoes were placed on rail shipments of most non -war goods. These embargoes were limited to the
northeastern states where heavy snowtall., had resulted in traffic tie-ups.
COMMODITY PRICES
Prices of commodities in wholesale and retail markets continued to increase slightly during January. In the first three weeks of February prices of farm products averaged above the January level
and small increases were permitted in maximum wholesale prices of various industrial commod ities.
BANK CREDIT

193!)

1940

1941

1942

1943

1944

~x cludes r,uaranteed securities. Data not available
Pnor tc? February 8, 1939; certificates first reporred

April 15. 1942. Wednesday figures, latest shown
arc for February 14, 1945.

On

eo...............

MEMBER BANKS IN LEADING CITIES

.0r---~~--_4----_+-----+----~~~~

~'o r-----t-----+--

With a steady succession of Treasury calls On war loan balances, both demand deposits adjusted
and time deposits at member banks increase I from mid-January to mid-February. Time deposits maintained the rather rapid rate of inc: ease wh:ch has prevailed for the past several months. During this
period reporting member banks in 101 cities reduced their total holdings of Treasury bills in order to
meet increas~~ in required reserves ~nd a cu rrency drain. At the same time, however, banks continued
to make sizeable purchases of Trea sury bonds, mostly in the eisht-to-ten-year maturity range. Loans
for purchasing and carrying Government securities decreased, particularly loans made directly to customers. Commercial loans also declined s lig~ltly.
During the five weeks ending February 21, Reserve Banks increased their holdings of Treasury
bills by 630 million dollars and sold 6~ million of Treasury bonds. The bill purchases, together with
advances of 165 million dollars to member banks, enabled banks to meet a 450 million currency drain
and a 270 million dollar srowth in require:! reserves. Ahhough currency in circulation had declined
through most of January, the outflow was renewed in the last days of the month and continued at an
nccelerated pace in February. Excess reserves declined to below one billion dollars late in January,
about the average level at which they havc been between drives during the past year.
GOVERNMENT SECURITY YIELDS

n!9

1940

1641

1942

1943

t944

Demand deposits (adjusted) exclude U. S. Govern·
ment and interbank deposits and collection items.
~overnlllent securities ioclude direct and guaranteed
ISSues. W'ednesday figures, latest shown are for February 14, 1945.

Following the close of the Sixth \'Var Loan Drive in December, the Government security market
was strong during January and the first part of February. The average yield on medium-term, taxable
Tr: asury bonds declined from 1.94 per ccnt during the last week of December to 1.78 per cent during
the week ended February 17. The average yield on long-term, t.xable Treasury bonds declined from
2.47 per cent to 2.39 per cent in the same period, the lowest since endy December, 1941.

MONTHLY BUSINESS REVIEW
CONDITION OF THE FEDZRAL RESERVE BANK
(Thousnnds of dollars)
Feb. 15,
Feb. 15,
1945
1044
Total onsh reserves .............................. . $533,607
&562,728
Discounts for member banks ...................... .
275
322
Industrial advancos ...................... .. ... ... .
Nono
12
U. S. Government seeuritios ...... . ........ . ...... .
660,274
427,037
Total earning assets ............................. .
669,540
428,271
Member bank reserve deposits ....... . .. .. .. .. . ... .
008,005
515,471
547,320
Federal Reserve Notes in actual eireulation ......... .
413,502

Jan. 15,
1045

S55~~~~
None
062,173
062,178
620,800
540,022

CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS
IN LEADING CITIES
(Thousands of dollars)
Feb. 10,
Jan. 10,
Feb. 14,
1045
1044
1045
Total loans and invostments : ...................... $1,659,374 $.1,307,104 $1,080,300
Totnlloans............................. . ......
404,517
343,101
410,550
Commercial, industrinl, aad a~riculturn llonns....
271,800
227,020
273,410
Loans to brokers and denIers III securities....... .
3,302
7,370
4,520
Other 10llns for purohasing or carryin g securities . .
52,158
41,802
50,752
22,485
19,504
22,546
Rcal estnte 100nB. ............................
Loans to b.nks.......................... .....
130
05
113
All other loans.. .. .. . .. ... .. . .. ....... .. .. .. .
54,447
47,205
50,200
Total investments..... .... ..................... 1,254,857
1,058,013
1,275,750
U. S. Treasu ry bills.............. .............
65,245
90,201
85,280
U. S. Treasury certificates of indebtedness.. . ... .
310,141
270,555
325,044
U. S. Treasury notos..........................
273,040
160,035
263,031
U. S. Government bends.. ... .................
540,243
413,422
537,156
14,201
46,530
20,484
Obligations guaranteed by United States Gov't . .
Other securities. . ... .. .. .. .. .. .. .. .. .. .. .. .. .
45,081
40,074
43,840
Reserves with Feilernl Rese,,'e Bank......... .......
337 ,208
203,754
353,881
215,534
231,787
230,168
Balancos with dOlllostic banks......................
Demand dcpo.its-ndjusted>. . . ................ ... 1,163,155
001,205
1,I03,Ojil
Tillie deposIto............... .. .............. .....
220,588
168,682
215,21;4
United Stotcs Government deposits.................
255,162
259,129
288,746
Interbank deposits..... . . . . . . . . . . . . . . . . . . .. . . .. .. .
602,902
44~JoI12,0e
540,260
Borrowinqs from Fedorol Reserve Bank. . • . . . . . . . . . .
None
N
3,000
<Includes all demand deposits other th"n interbank and UniteJ Statos Goveroment, les8
ensh item! reported as on hand or in process of collection.
DEBITS

Abilene .................
Amarillo. _ ..............
Austin ..................
Beaumont ...............
Corpus Christi. ..........
Corsicana ... ............
Dallas ..................
E1Paso .................
Fort Worth ..............
Galveston ...............
Houston ........ ....... . .
Laredo ..................
Lubbock .. ..............
Monroo, La ... . ........ ..
Port Arthur. . ..........
Roswell, N. M ...........
San Angelo ..............
&n Antoflio. ~ ......•..
Shreveport, La.. . . ... : ..
0_

Texarkana- ..... .... . ....

Tucson, Ariz . . .. .. . ......

'S!~~~: ::: :::: ::: ::::: :::
Wichita Falls ... .........

'1'0 INDIVIDUAL ACCOUNTS

(Thousands of dollnrll)
J nnuary
January
Pctg.chango
1045
1044
over year
S 20,988
17,005
+23
47,780
42,401
+12
102,100
00,109
+70
64,572
58,676
+10
57,878
40,480
+17
7,082
6,935
+2
633,803
501,569
+20
71,484
61,170
+17
227,576
225,207
+1
45,200
44,308
+2
588,434
520,935
+13
12,391
11,196
+11
3S,305
32,036
+20
21,S09
17,000
+24
24,270
24,316
-t
0,030
8,Q70
+10
18,100'
14,528
+25
103,360
J.38,220
+18
06,455
75,128
+28
22,158
18,502
+20
33,000
27,407
+20
25,402
20,31S
+25
32,105
27,255
+18
&2,425
26,890
+21

Deeember
1044
20,900
44,884
76,560
70,133
57,581
8,806
083,069
78,643
264,381
48,510
044,571
12,301
34,240
21,730
23,857
10,035
20,150
172,223
101,028
25,101
33,456
20,40S
34,865
33,280

Potg.obont!:'

over mont

tJ
+33

-8
+1
-20

-7
-9
-14
- 7
-0
No obg.
+12
+ 1
+2
- 4

- 10

-5
- 5
-12
-1

-4

-8
-3

- a

Total-24 eitiea ......... $2,306,784 $2,029,738
$2,547,847
+18
<Includes the figures of two banks in To"orkona, Arkansas, loc" tod io the Ei~hth Distriot.
tCh nnge less than one·half of one pcr cent.
GROSS DEMAND AN D TfME DEPOSITS OF MEMBER BANKS
(Average doily figures-Thousands of dollars)
Combined total
Roserve city banks
Country banks
Gross
demand
January 1043 ....••.... $2,643,213
January 1044 . .... .. . .. 3,242,366
September 1944 .......... 3,600,145
October 1044. ......... 3,705,142
November 1044.... ...... 3,844,475
Decomber 1044 .......... 4,024,828
January 1045. ......... 4,104,746

Gross
Gross
demond
Time
Time
Time
demand
$227,033 $I,408,IS1 $130,004 $1,175,032 $ 07,029
270,576 1,000,310 165,073 1,543,056 104,603
315,011
1,915,077 198,204 1,750,408 117,407
324,328 1,920,004 203,702 1,785,138 120,536
333,158 1,077,205 210,317 1,807,180 122,841
338,680 2,060,040 213,060 1,057,882 125,020
345,501 2,000,671 218,338 2,014,075 127,253

SA VlNGS DEPOSITS
January 31, 1045

Beaumont ... .... . .......
DaUas ..................1
El Paso .................
Fort Worth ..............
Galveston .............. .
Houston .................
Lubbock .... ......... ...
Port Arthur .............
8.n Antonio .............
Shreveport, La ........•..
Waco ..... ..............
Wichita Falls ............
All other ................
Total . . .......

105

Number of Amonnt of
savings
savinI!"
depositors
doposlts
11,707 S 6,308,580
105,261
51,537,798
23,924
15,652,669
30,628
23,708,004
20,760
16,154,548
82,630
51,375,157
804
552,704
5,459
4,278,375
31,052
31,565,035
30,700
10,188,046
8,442
6,472,382
6,008
4,012,184
55,515
38,755,402
419,505

$269,647,474

Arizona ... ....... .
New Mexico.......
.
....
Oklahoma.. . .. .. ..
355
+22
-37
Texas.............
804
+18
-38
Wholesale trade:>
Drugs.............
5
+11
+10
- 4
- 2
3
+ I0
- 8
Eleetrionl supplies . .
Groceries..... .....
28
+13
+ 3
':':'i:i
- 5
Hardwaro. . .. .....
11
+10
+ 3
Tobaoco &, products.
4
- 10
+ 2
<Compiled by United States Burenu of Census (wholesale trade figures preliminary).
tBtooks at end of month.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Daily nverage snles -(1035·1930=100)
~----UnndjU.!lted H
Adju,ted---Jnn.
Dec.
Nov.
Jan.
Jnn.
Dec.
Nov.
Jon.
1045
1044
1944
1944
1045
1044
1044
1044
Distriet. ....
211
421
314
177
201
203
264
206
D,llns . . . . . .
204
aoo
aoa
173
234
245
204
193
Houston.....
lOa
412
307
173
241
256
252
208
Aunual Bnles indexes-(1085-1030 = 100)
1944
1043
Distriet. . . . . . . .. . . . . . .. . . .. . . . . . . . . . . . . . . . . .. .. . . . . . . .. .. .. .
245
211
Dallas. . . ................ .. .. .. .. . .. ... ......... ... .. .......
238
109
Houston.. .. .. . . . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
240
215
Stoeka-(1023-1025= 100)
~----UnadjU.!lI"d+·
Adjustcdl---Jan.
Deo.
Nov.
Jan.
Jun.
Deo.
Nov.
Jail.
1945
1044
. 1044
1944
1045
1944
1944
1044
Distriet.....
95
01
121
08
100
104
108
112
HUnadjusted for seasonal varintion.
BUILDmG PERMITS
January 1045
Abilene.. . ... .. . .... .. . .... .
Amarillo.............. ..... .
Austin............ ..........
Beaumont...................
Corpus Christi.......... .....
Dallas.. .. .. .. .. . .. .. .. . .. ..
EI Paso.... ................ .
J,' Irt Worth. ... .......... . ...
Gllvoston...................
liouston.... .. .. .. . .. .. .. ....
Lubboek........ ............
l' Itt Arthur.. .. .. .. .. .. .. .. .
S.w Antonio.. .. .. .. .. .. .. .. .
Shreveport, La.. . . .. . . . . . . •. .
" /aeo..... ......... ........
Wiehita Falls.. ..............

Number
10
75
115
167
148
540
50
285
51
200
131
71
871
202
55
27

Valun!:oll
$ 12,035
151.788
164,223
74,807
177,032
407,720
100,460
:l6l,047
53,102
622,503
140,120
26,804
~ 15,070
222,327
37,189
24,600

Totul. . . . . . . . . . . . .

3,Q70

S3,080,404

Dee.31,
1044
+ 3.3
+ 3.3
+ 2 .3
+ 2.2
+ 1.0
+U
+ 2.5
+ 2.0
+ 1.0
+ 3.4
+ 3.3
+ 1.0
+ 2.0

+32.2

+ 2.5

Jau.l044
- 00
+105
·+421
+200
+ 75
- 64
+166
+ 37
- 55
+ 28
+711
- 36
+ 54
+353
+ 11 2
+ 31
+

1

VALUE OF CONSTRUCTION CONTRACTS AWARDED
(Thousands of dollarA)
January
January
1045
1044
Eleventh Distriotr-total. ...... .. . ...... ..... .... . $ 15,233
$ 10,822
Residential .. . ........ .. ... .•........ .....• • ...
008
4,106
All otber......... . .. . .. ....... . . .. .. ......... .
14,265
12,050
United Statos>-totnl.. ....................... .. ..
140,040
150,238
Rosidential. ................ . ................. .
10,536
40,007
AU other ............................ .
121,413
11 8,241
>87 states enst of the Rocky Mountains.
SOURCE: F. \Y. Dodge Corporation.

Dec. 1044
- 37
+221
+200
+121
+ 6
+ 47
+187
+130
- 77
+ 24
+ 11
- 32
- 36
+ 36
+ 14
+168
+ 10

Deeember
1944
S 29,804
1,188
2S,706
IS8,481
23,902
164,570

PORTLAND CEMENT STATISTICS-TEXAS MILLS
(Thousands of barrels)

eposits from

Jan.31,
1048
+26.6
+42.0
+42.0
+37.5
+22.2
+27.7
+14.1
+22.7
+32.7
+35.3
+30.4
+11.4
+27.5

Percentage ehange valuation

~--------~---~ from'::""--~

Poreenta~e ohange in

savings
Number of
reporting
banks
3
8
2
3
4
0
2
2
5
3
3
3
58

WHOLESALE AND RETAIL TRADE STATISTICS
~-----Peroentage change in:-- - - -Stoeks t - Number
Net sale,
of
January 1045 frolll
Jan. 1 to
January 1045 from
reporting
Jnnuary
December
Jan.
31,
1045
Jnnuury
December
Retail tracle:
firms
194 4
1944
from 1044
1044
1044
Department .tores:
Totnlllth Dist ... .
48
+24
-47
- 4
+12
Dallas ........... .
7
+25
-45
- 1
+ 7
Fort Worth ....... .
4
+IS
- 52
- 7
+11
Houston .......... .
7
+16
-51
- 6
+15
San Antonio ...... .
4
+37
-30
+ 1
+62
Shrevoport, La ... .
3
+32
-46
23
+21
-49
-11
.:.:: oj
Otber eities ....... .
Retail furniture:
Total 11th D iBt ... .
-36
58
+30
-6
+9
Dallas .......... ..
- 10
5
+10
Houston .. .. ...... .
-34
o
'+0
+31
+22
Port Arthur ...... .
4
-0
+14
- 10
+0
San Antonio ...... .
3
-44
+34
3
Wichita FallB ..... .
-38
+24
Independent stores:>

Month
January .... .
February ... .
March ..... .
April. ...... .
May ...... ..
June ....... .
July ..... . . .
Allgust ..... .
September .. .
October .•.••
November .•.
December .••

~Production-----Shipments---Stook. (end of month)-

1944
430
470

1043
800
687

1044
440
470

1943
608
020

1044
1,116
1,124

1043
872
030

575
541
454
530
554
507
520
523
501

862
025
860
832
821
730
788
730
534

622
512
570
575
560
527
570
478
385

070
841
865
778
811
683
723
603
400

084
1,014
888
843
837
007
848
893r
1,010

620
704r
706
760
770
818
883
1,010
1,135

6,285

0,177

~

~

Total...
6,160
9,580
r-Rcvised.
SOURCE: Bureau of Mines.

m

m

I~n

m