The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MON THl Y BUSINESS REVI EW
of
the
FEDERAL RESERVE
BANK
o f
Dallas
~===================================================================~~=======================
Volu me 26 , N o. 3
=---
D a11as, T exas, May,
1 194 1
This copy is released for pubIication in mor nin g papers-
Apn. l 30
~~~====================================================~~~~~~~~~~==
DISTRICT SUMMARY
D.T~e production of manufactured products in the Eleventh
Istnct showed a moderate expansion during March and emp.loyment and payrolls advanced further, maintaining a substang~l ~argin of gain over the corresponding month last year.
~Stnbution of commodities to consumers continued heavy,
With durable and semi-durable goods in strong demand. Depart~ent store trade increased seasonally from February to March,
;.. e dol.lar volume exceeding that of a year ago by 4 per cent.
. he dally average value of construction contracts awarded durIng March was down nearly one-fourth from the preceding
~onth, but awards were much greater than in March, 1940.
.rude oil p1'Oduction expanded further, whereas, refinery opera~Iobs declined moderately from the all-time peak established in
ru~ry. Production and shipments of lumber from mills in
t IS district continued considerably higher than a year ago. The
outlook for agriculture improved somewhat during the latter
part of March and the first half of April, when warm, dry
wca~her enabled farmers to make rapid progress with land preparatIOn and planting operations.
BUSINESS
b Consumer purchases in the Eleventh District appear to have
d~en well sustained during March. The distribution of merchans Ise through department stores increased by about the average
easonal amount and exceeded that in March, 1940, by 4 per
ent . The latter gain is especially significant since all of the
th ster trade fell in March last year, whereas, a major portion of
19at business was transacted during the first two weeks of April,
d 41. Reflecting pre-Easter buying, sales at weekly reporting
abPartment stores during the two weeks ended April 12 were
i OUt 40 per cent greater than in that period a year earlier. Durang the first quarter of 1941, department store trade averaged
RePer ceI?'t ~igher than in the initial three months of 1940.
d' P~rts lOdlcate that the gain was general throughout the
IStrlct.
we~n~entories of merchandise at reporting department stores
at e lOcreased 10 per cent during March, and the dollar value
P tte month-end was 2 per cent greater than a year earlier. It is
oro able, however, that the physical volume of stocks held
t~ ~hat date was little different from that of a year ago due
ch ~her average prices prevailing on department store merandls e.
tr ~he. business of reporting wholesale firms in six lines of
"tvt \In this district evidenced a substantial seasonal gain in
la arc , and sales exceeded those in the corresponding month
e;t year by 16 per cent. Sales in all reporting lines of trade
cept tobacco and tobacco products participated in the gain
tr'br t~e year. During the first three months of 1941, the disa,,1 Utlon of merchandise through wholesale trade channels
A.lcraged about 13 per cent greater than in that period of 1940.
t.c nong the individual lines of trade the most significant gains
an~Ohded for the t~ree-month period were in sales of machinery
of 19ardware, which exceeded those in the initial three months
ag 40· by 32 per cent and 19 per cent, respectively. The
wt i gate value of inventories held on March 31 at reporting
las:o esale firms was 11 per cent greater than on that date
year.
M:aE~ployment and payrolls in Texas increased further in
u rc . On the basis of figures compiled by the United States
rcau of Labor Statistics it appears that the number of em-
h'
E
0"
ployees in nonagricultural businesses exceeded by a small margin
the 1940 peak of 1,084,000 recorded last December. According
to the Bureau of Business Research of the University of Texas,
employment in Texas during March was 5 per cent greater t han
a year ago and payrolls were up 9 per cent. The increases over
the year appear to be fairly general over the State, but t he most
pronounced gains have occurred at Amarillo, D allas, EI Paso,
and Wichita Falls.
The number and liabilities of business failures in the Eleventh
District declined by about 10 per cent from February to March
but continued higher than a year ago. Dun & Bradstreet repor ted
30 insolvencies during the month, with an aggregate indebtedness of $366,000.
AGRICULTURE
Persistent rainfall over the major portion of the Eleventh
District during the first three weeks of March caused a further
delay in spring plowing and planting operations, but toward t he
latter part of the month and early in April generally fair
weather enabled farmers to make rapid progress with field work.
By the middle of April planting of corn was nearing completion in north Texas and the seeding of cotton had extended
into central Texas. The appearance of warm, dry weather was
also beneficial to the growth of small grains, range feed, fruits
and commercial vegetable crops. Moisture conditions are good
to excellent throughout most of the district.
Although the growth of the Texas wheat crop has been
handicapped by a late start and considerable shifting of soil,
physical conditions have been generally favorable for the crop
in recent weeks. The principal area in which the crop has been
seriously damaged by soil blowing is in the western portion of
the Panhandle, where the abandonment of acreage is expected
to be heavy. Elsewhere in the wheat growing area of T exas
the crop ha~ shov:n a noticeable recovery from the damagin~
effects of high wlOds. The Department of Agricult ure in its
April 1 forecast placed the indicated production of wheat in
Texas at 41,420,000 bushels, which, if realized, would be the
fourth largest crop of record, exceeding the 1940 harvest by
about 12,000,000 bushels. The indicated yield per acre in t his
S~ate was placed at 9.5 bushels as ~gainst a 19~0-1939 average
Yield of 6.8 bushels. The prospective productIOn of wheat in
Oklahoma was forecast at 62,959,000 bushels on April 1 as
compared with a ten-year average harvest of 47,682,000
bushels.
The growth and harvesting of spring vegetable crops in the
truck growing area of south Texas, which had been delayed by
LIVESTOCK
ON ·FARMS
JANUAR'I' , OF [ Aat
~AR ,
ELEVENTH f.ED.ERAL RESERVE . DISTRICT
e
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
low temperatures and excessive rainfall earlier in the season,
The number of range animals on farms and ranches in this
made some progress during the first half of April with the district increased further in 1940 and at the close of the year
advent of warm, dry weather. Shipments of vegetables and the total was at an all-time peak for that date. According to
citrus fruits from south Texas thus far this season have the Department of Agriculture, cattle and calves on farms at
averaged 18 per cent smaller than in the corresponding period the beginning of 1941 numbered 400,000 head higher than a
last season. According to the Department of Agriculture, the year earlier and the inventory of sheep and lambs was nearlY
condition of fruits and nuts is generally good throughout 500,000 head larger. The pronounced expansion in sheep raisTexas. On April 1 the condition of peaches was placed at 85 ing that has developed during recent years accounts for the
per cent of normal, as against 77 per cent on that date in record established in the number of sheep and cattle on farms
1940. Production of peaches in Texas in the latter year was in this district. The cattle inventory on January 1 this year
was still 14 per cent, or 2,000,000 head, smaller than on JanUin near record volume.
The Department of Agriculture's annual survey on the pro- ary 1, 1934, when the highest point in recent years was
posed acreage to be utilized by farmers in this district during reached. Following a marked increase in the preceding year,
1941 in the production of twelve principal summer crops ex- the number of hogs on farms in the Eleventh District showed
cept cotton shows that approximately 23,079,000 acres will be a substantial decline in 1940, reflecting heavy marketings and
planted. TIllS total, if realized, would exceed the 1940 acreage a reduction in the number of pigs raised. The trend toward
planted to similar crops by 234,000 acres and would be mechanical farming, which has been in progress since the earlY
1,100,000 acres in excess of the 1930-1939 average. In Texas, 1920's continued in 1940; the number of horses and mules on
farmers plan to utilize 13,263,000 acres in the production of farms declined 3 per cent over the year, the total on January
these crops, which would be 2 per cent larger than in 1940 1, 1941, being about 40 per cent smaller than the 1920-1929
and 7 per cent greater than the ten-year average. As compared average.
• FINANCE
with 1940, it is estimated that the acreage to be planted in
The Secretary of the Treasury announced during March
this district and in Texas to corn, tame hay, rice, potatoes, and
legume crops will be larger, whereas, that seeded to oats will that three new series of United States Savings bonds, as well
be moderately smaller. The indicated acreage to be planted to as Postal Savings stamps, will be offered for sale, commencing
May 1, 1941. The new issues are designed to appeal to individgrain sorghums is about the same as that in 1940.
Livestock ranges in the Eleventh District showed the usual ual investors in all income groups, as well as to other investors,
seasonal improvement in March, and the growth of range feeds None of the savings bonds may be purchased by banks,
On March 18, the United States Treasury announced an
was further stimulated by favorable weather conditions during
the first half of April. On the whole, prospects for spring and offering of 2 Yz per cent Treasury bonds dated March 31, 1941.
summer grazing are the best in several years. Although low To this issue the Treasury invited cash subscript~ons in the
temperatures during March caused a shrinkage in livestock amount of $500,000,000 and also offered the bonds in exchange
weights and light to heavy losses among new-born lambs and for the His per cent Treasury notes maturing on June 15,
kids and freshly shorn goats, the condition of livestock con- 1941, outstanding in the amount of $500,000,000. The holders
tinues above the average for this season, and in view of the of the 1 % per cent notes were also given the option of eJCfavorable range conditions, animals are expected to mend changing them for the % per cent Treasury notes dated March
rapidly with the appearance of seasonable temperatures. The 15, 1941. In this district, a total of $2,524,500 of outstandoutlook is favorable for a large supply of grass-fat cattle and ing notes was exchanged for the new issues, and cash subsheep for slaughter this spring, and it is anticipated that a scriptions to the 2 Yz per cent Treasury bonds aggregated
larger number of animals will be fattened for market in this $138,830,000, against which allotments of $12,513,300 were
district than has been the case in recent years due to the favor- made.
able range conditions. The Department of Agriculture reports
NUMBER AND VALUE OF LIVESTOCK ON FARMS AS OF
JANUARY 1, 1041 AND 1940-(000'8 omitted)
that contracting of cattle for future delivery has been active,
,
Tex a s - - - - v - - Eleventh Distriotr----but total commitments have been smaller than usual.
~No. hoad~Total vallle~No. hoad-_Tota valueWHOLESALE AND RETAIL TRADE STATISTICS
====N;;tiPereentage ehnnge in:
,
Number ~:::
Net s.les--v----Stoeks_____
of
March, 1041 from
Jan. 1 to
March, 1941 from
reporting Maroh,
Feb.,
M.r. 31, 1941 March,
Feb.,
Retail trade:
firms
1940
1941
from 1940
1940
1041
Department stores:
Total llth Dist .. . .
46
+ 4
+21
+ 8
+ 2
+10
Dall.s .......... ..
7
+ 4
+12
+ 6
+ 6
+ 9
Fort Worth ....... .
4
+ 1
+33
+ 8
- 5
+10
Houston .. ....... ..
7
- 2
+20
+ 6
+ t
+17
San Antonio ....•..
5
+17
+31
+16
+ 8
+ 9
Shreveport ....... .
3
- 2
+23
+ 7
Other oities .......•
20
+ 5
+26
+10
+iiJ
Independent stores:'
Arizona. . .. . .. .. . . 258
+ 5
+13
+ 8
New Mexioo.......
174
Okl.homa.. .. .. .. . 548
Texas... . . . . . .. . .. 1,028
+ 5
+17
+12
Wholesale trade:'
Maohinery, cqpt. '"
supplies...........
5
+33
+ 7
-7
+32
+8
Drugs (inol. liquors) .
11
+ 13
+ 9
+7
+9
+2
Groceries... ........
32
+12
+14
+14
+ll
+8
Hard ware.. ........
15
+28
+13
+14
+19
+5
Surgioal equipment. .
5
11
+ 4
5
No cbg.
4
- t
Tobaooo '" produots.
'Compiled by United States Bureau of Census. tChange less than one-half of one per cent.
·:. :.'3
+~ +lg
+
+1~
+
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1923·1925 average=I00)
Maroh
February
January
1941
1941
1941
Bales (daily average):
Without seasonal adjustment ....... .
112
100 r
96
With seasonal adjustment .... ...... .
118
118
126
Stooks (end of month):
Without seasonal adjustment ....... .
74
67 r
63
With seasonal adjustment ........... .
72
70 r
72
r-Revised.
Maroh
1940
110
112
71
69
1941
Horses and colts ..... .
665
Mules and oolts. . ....
633
All oattlo and oalves.. 6,044
Milk oows'........ 1,457
Hogs, inoluding pigs.. 1,926
Allsheop and lambs .. 10,620
1940
1941
1040
670 31,545 34,850
659 47,421 53,347
6,677 219,694 199,782
1,443 59,737 54,834
2,203 12,827 13,090
10,009 55,389 49,413
___
___
1941
1,328
1,016
12598
2'662
3:874
14 347
I
1940
1941
1940
1,359 62.010 70,440
1,052 79,995 89,907
12 195r409 753 373,41~r
2'618 112'314 103,35
4:674 23:037 25,08 2r
13 852 r 76541 09,804r
I
'
___
Total ........ , 20,788 20,377 306,826 350,482 33,163 33,)32 652,836 628,79~
'Cows and heifers two years old and over kept for milk' number and value inoluded ,n
".ll o.ttlo .nd oalvos".
lElcventh District figures repres~nt oombined totals for the 6ve
states wholly or partially inc uded in the Ele,'euth Distriot.
r-Revised.
SOURCE: United States Dopartment of Agrioulture.
LIVESTOCK RECEIPTS-(Number)
, . - - F o r t Wo r t h - - - v - - San Antonlo---Maroh
Maroh February Maroh
Maroh FebruarY
1941
1940
1941
1941
1940
1041
C.ttle .................. . 33,175
36,147
26,309
13,589
13,281
12,~~~
Calves ................. . 16,390
22,704
16,415
13,340
14,347
15'877
53,837
43,416
48,359
14,171
8,817
13'831
45,430
49,088
18,740
7,994
5,631
5,
~~!~:::::::::: :::: :::::
CASH FARM INCOME FROM THE SALE OF PRINCIPAL FARM PRODUOTS
AND GOVERNMENT BENEFIT PAYMENTS
(In thousands of dollars)
,-----January, 1941 ---~
Receipts from:
Govern- ',.....--Total reoeipts-----mont
January
JantUlr Y
Crops
1941
1940
Livestook' payments
555
5475
4,666
1,970
7,191
6'035
3,620
5,108
464
9,201
3' 006
New Mexioo .... . . ·...... .
1,049
1,840
783
3,672
'
2,710
15,552
}4,749
Oklahoma .............. .
4,480
8,362
Texas .................. .
11 804
43 903
39,504
15,943
16,156
,
,
70,029
Total. .. .... ....
29,767
38,436
16,316
79,519
' Inoludes receipts from the sale of livestook and livestook produots.
SOURCE: UDlted States Department of Agriculture.
~~i~r~,~·.·.::::::: ::::::.-
-
MONTHLY BUSINESS REVIEW
8
Treasury financing during March resulted in some adjust- in fairly close alignment with demand, and above-ground
Illents in the investment portfolios of weekly reporting mem- stocks of crude oil showed a much smaller gain than was exber banks in this district. Between March 12 and April 9 in- perienced in the corresponding period last year. Furthermore,
Vestments of these banks in Treasury bills were increased conservation authorities in the eight prorating states, which
$2,587,000 and holdings of Treasury bonds rose $10,691,000 to account for 84 per cent of the nation's crude oil production,
the highest level in recent years. Investments in Treasury notes, show a disposition to hold alIowables near the estimated demand
on the other hand, were reduced $7,642,000, reflecting chiefly as computed by the United States Bureau of Mines.
eXChanges of outstanding notes for new issues of Treasury
Although a high rate of refinery operations during the initial
bonds. Holdings of Government guaranteed obligations were three months of 1941 caused a heavy accumulation of gasoalso reduced $3,178,000 during the period. Although total in- line, stocks of that product at the close of March were 3 per
Vestments on April 9 were only $2,800,000 greater than four cent smaller than a year ago, and expressed in terms of days'
'Veeks earlier, they exceeded those of a year ago by $13,500,000. supply at the current rate of consumption, motor fuel stocks
Loans at weekly reporting banks showed little change between are about 10 per cent smaller than a year ago. The inventory
March 12 and April 9 but the total of $320,235,000 on the position of industrial fuel and heating oils is generally satislatter date was $50,440,000 greater than on the corresponding
CONDITION OF THE FEDERAL R~ERVE BANK
date in 1940.
(In thousand. of dollars)
. Total deposits at reporting banks decreased $11,076,000 durApril 15,
April 15,
Maroh 15,
1041
1040
1041
Ing the four weeks ended April 9. Although United States Total oash resorves ..... . . . .... .......... ....... '....." .• S323,408
$240,560
$311,806
Disoounts ror momber bauks ......" . ...... ... .. ....... .
Government deposits increased $5,233,000, there were declines Other
53
274
Nono
bills disoountod ......... ............... . .... .
None
30
None
?f $10,219,000 in adjusted demand deposits, of $4,750,000 in Industrial advances ... . .......................... .
277
482
277
United States Govornment securities . ............ _ ..
88,046
05,012
86,835
Interbank deposits, and $1,340,000 in time deposits.
Total earning assets ................ . ........... ..
88,376
05,708
87,112
Member
bank
reserve
deposits
.....
.
..............
.
.
212,078
Reserves of member banks in this district declined about Federal reserve notes in aotual circulation ... ........ . 253,164
255,056
00,567
70,542
08,705
$21,000,000 during the last half of March, reflecting chiefly
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
the
effects
of
income
tax
collections
and
cash
settlements
cove.
(In thousands of dollars)
rIng purchases of the 2 Yz per cent Treasury bonds dated
April 0,
April 10,
March 12,
1041
1040
1941
Ma~ch 31, 1941 j nevertheless, daily average reserves for the
Totalleana and inve.tments....................... $504,115
$530.143
$501.360
period were still $3 0,000,000 greater than a year ago. Daily Total
loans. ..... . .................... .. ......... 320,235
260,705
320,300
Commeroial, industrial and agrioulturalloans. .....
210,257
178,027
220,046
average excess reserves during that period decreased further by
Open market paper........... . .... .. ...........
1,930
1,750
1,650
$8,200,000 to $85,8 00,000, which was the lowest figure reLoans to brokers and dealers in seourities.. . .. .. ...
3,269
4,306
3,854
Other loans ror purchasing or oarrying securities....
11,023
18,401
11,805
~rd.ed for any semi-monthly period during the current year.
Real estate loans .... . .... .. . '" .. . . .. ." ...... ..
23,814
22,264
23,471
Loan. to banks....... ... .. ...... . ..... ....... .. . .. .
532
438
640
Urtng the first half of April both reserve balances and excess
All other loans . .. . ... .. .... . . . ... ... ... . .......
50,501
40,510
57,844
151,223
169,004
reserves averaged slightly higher than in the preceding period. United States Government direct obligations......... 174,640
Obligations fully guaranteed by United States Govt. .
37,207
40.874
40,385
Total earning assets of the Federal Reserve Bank of Dallas Other seourities. . ..... . ..... . ... ... ........... . •.
62,033
59,251
61,671
with Federal Reserve Bank. . ....... . .....
140,105
132,254
161,057
ro~e $1,264,000 during the month ended April 15, reflecting Reserves
Balanoes with demestio banks.... .. . . . . . . ... ... ..... 306,451
202.088
307,409
473,480
556,706
chiefly an increase in holdings of United States Government Demand doposita-adjusted". . . . ... . .............. 546,487
Time deposIts. .. .. .. . .. . .. . . . . . .. . .. ..... .. .• . .. . 136,650
136,016
137,000
securities occasioned by a reallocation of the System's invest- United States Governmont deposits ... . .. ... .. . •... . 27,653
31,003
22,420
deposits..... .. ........ .. ...............
280,770
263,161
204,526
Illent account among the several Reserve banks. After reaching Interbank
Borrowings
from
Federal
Reserve
Bank.........
.
.
.
.
None
None
None
bn alI.-time peak on March 4, Federal Reserve notes of this oasb "Inoludes
all demand deposit. other tban interbank nnd United States Government Ie ..
items roported as on hand or in tbe process or eoUeetion.
'
ank m actual circulation showed a moderate downward trend
Until the final week of the month when month-end requireDEBITS TO INDIVIDUAL ACCOUNTS
(In tbousand8 doUars)
~ents for payrolls and business settlements caused an expanMnreb
March
Petg.ehange Februnry Potg.ehnnge
~on to a new record of $101,80 0,000 on April 2. During the
1041
1940
over year
1041
over month
rSt quarter of 1941, Federal Reserve notes of this bank in Abilene .................. $ 14,297 S 8,517
+68
$ 12,224
+17
Austin. . ..... ... .. .. . .. ..•
33,773
35,185
-4
34,088
-1
aCtual circulation averaged $16,900,000 higher than in the Beaumont... . ... ... ... .. 28,202
23,780
+10
27,103
+4
Corsicana ....... ........-.
3,701
3,320
corresponding period of 1940.
3,373
+11
+10
Dallas. . . .. . .... .. .. .. .. . 303,792
263,377
+15
266,539
+14
El Paso................ ...
44,647
33,240
INDUSTRY
+34
46,800
-5
Fort
Worth......
........
87,700
80,971
88,361
+8
+5
h.The aggregate value of construction contracts awarded in Galveston............ ....
28,140
28,078
24,440
+
t
+15
251,008
260,147
t IS district during March was 6 per cent smaller than in t~e Houston.. .. . .. .. . .. .. • .. 278,724
+11
+7
Port Artbur. . . . ... ..... .
0,014
0,590
+3
10,188
-3
reC:ding month, reflecting declines in awards for non-reSl- Roswell. . . . .. . .. .. . .. .. .
4,570
4,467
+3
4,577
+t
San Antonio.............
84,433
72,100
+17
78,347
+8
hntlal building and engineering projects. On the other hand, Shreveport.
. . . . . . . . . . . ...
52,718
45,376
+10
45,716
+15
Texarkana".... ... .. ... ...
8,800
8,244
+7
8,406
e value of awards for residential building was moderately Tucson..
.. .. . . . .. . . .. . ..
15,342
13,022
+18
13,387
Igher than in February. Contracts let for all classes of con- 'I'yler.. .. .......... .. ...
11,393
12,410
-8
11,430
-t
14,722
. ...............
16,556
+12
14,606
+13
s~rUction work showed a marked gain in value over the rela- Waco...
16,608
Wichita Falls. ...... . ....
17,750
+7
15,508
+14
tively small total in March, 1940.
Total. .. .......... S1,044,470
$024,042
+13
$060,348
+ 9
During the first quarter of 1941, the value of building con"Inoludes figures of two banks in Texarkana, Arkansas, located in the Eighth Dist.riot.
tracts issued in this district amounted to $66,500,0 00, which
tCbange leas tban one-balf of ono por cent.
\\ras near the record for that period, and nearly 50 per cent
SAVINGS DEPOSITS
greater than in the initial three months of 1940. Increases in
March 31,1941
Per.cent':F.e e~an,e In
ch
e
principal class of construction work contributed toward
Number of ' Number of Amount of: savlDgs epeslts rom"
t. e gain over 1940, but among the specific types of construcreporting
savings
savings
March 31,
Fob. 28,
depositors
deposits
1040
1041
tion the most pronounced increases occurred in awards for Beaumont ........... . .. . banks
3
10,339 $ 4,288,500 + 7.7
+.9
~anufacturing buildings, one-family dwellings, and streets and Dallas ................. .
8
01,002
26,723,707 + 1.0
+ .2
El Paso ................ .
10,735
8,424,408 + 2.1
+ 1.0
2
ghways.
Fort Wertb ..... . ....... .
a
35,128
13,120,763 + .0
No obg.
Galveston
.....
...
......
.
4
10,075
12,220,080
1.4
+.7
Daily average crude oil production in the Eleventh District Houston ................ .
10
78,006
32,544,001 + 4.5
+.4
Port Arthur . ........... .
~nd in the United States increased moderately from February San
2
5,083
3,236,465 + 1.3
-.0
Antonio . . ......... ..
5
23,346
18,011,133 + 1.2
.3
~arch, but remained at a lower level than a year ago. Shreveport ............ ..
+.5
3
25,486
12,370,389 + 1. 6
Waco
..................
.
3
8,136
4,510,051
2.1
+.2
Urtllg the first quarter of 1941, operations resulted in a Wiohita Falla ........... .
3
7,131
3,611,480 - 1.0
- 1.2
.
. h'
..
f th
69
62,803
30,765,570 + 1. 5
.2
dStrengtllenmg
lD t e mventory positlOn 0
e petroi
eum'm- All otbers .............. .
Total •• • ___ _
Us try. Petroleum output during the three-month period was
115
387,160 $160,844,736 + 1.8
+.2
0'
h'
h
b
+lg
MONTHLY BUSINESS REVIEW
4
factory. From the standpoint of , demand, domestic consumption of gasoline during the first quarter of 1941 was considerably larger than in that period of 1940 and consumption of
industrial fuel oil also showed an appreciable increase, reflecting the high rate of industrial activity. The United States
Bureau of Mines estimated that the combined export and
domestic demand for all refined products during the second
quarter of 1941 should be about 5 per cent greater than in
that period of 1940.
Wholesale prices of gasoline advanced moderately during
March from the extremely low levels that had prevailed for
several months, and prices of fuel oil and lubricants also increased. Posted prices for crude oil in the Mid-Continent area,
which had remained virtually unchanged since October, 1938,
were advanced from 5 to 7 cents per barrel during the latter
part of March and early in April. A similar increase was later
effected in Illinois, Michigan and the Rocky Mountain producing sections.
Drilling activity in the Eleventh District showed a counterto-seasonal decline in March, and the daily average number of
wells completed was much smaller than a year ago. In contrast
with the decline in this district, well completions elsewhere in
the United States increased sharply from February to March
and were at a 6 per cent higher rate than in March last year.
Drilling activity in the United States during the first quarter
of 1941 was at a 5 per cent lower rate than in that period
of 1940.
The rate of activity at cotton textile mills in the United
States rose to a newall-time peak during March, as mills
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
March
Maroh
February
January 1 to Maroh 31
1941
1940
1941
1941
1940
Eleventh Distriot-total.. . $ 22,101
S 13,945
$ 23.581r
S 06,510
S 45,892
8,072
6,637
7,565
Residential. . ..... .....
24,085
17,018
All other. . . . . . . . . . . . . .
14,089
7,308
10,010r
42,425
28,274
United States"-total.... .
479,903
272,178
270,373
1,055,481
608,943
Residontial. . . . . .. . . . . .
147,859
121,708
110,459
375,024
273,900
All othor. . . . . . . . . . . . . .
332,044
150,470
153,914
079,857
394,977
"37 states east of the Rooky Mountains.
r-Rovised,
SOURCE: F. W. Dodge Corporation,
BUILDING PERMITS
Percenta~e ohange
Peroentage
Maroh,1941
valuation from
Jan, 1 to Mar, 31, 1941 ohan~o
No, Valuation v~M-ar-.,-19-40-F-eb-,,19-4"""'1v
Abilene........
75 S 261,674
+490
+369
Amarillo. . . ....
62
175,697
- 34
- 11
441,444
- 60
- 43
Austin. ...... . . 191
Beaumont .... . , 114
151,550
+ 26
+ 71
Corpus Christi.. 206
925,880
+ 63
- 30
Dallas". . . . . . . . 827 1,008,405
1
+ 10
EI Paso. ....... 109
208,395
- 2
- 27
Fort Worth..... 290
570,839
+ 18
+ 03
Galveston......
228
591,997
+ 166
+512
Houston........
537 2,587,185
+ 39
+132
Port Arthur. . . .
96
74,823
- 48
- 30
San Antonio.... 500
476,384
- 33
+ 26
Shreveport. . . .. 126
270,419
- 50
- 9
Waco. .... .....
59
239,278
+ 90
+ 58
Wiohita Falls ... ~
2q3,468
+ 80
+151
Total. ... 3,556 58,247,444
+ 8
+ 29
• Inoludes Highland Park and University Park,
tIndioates ohange of less than one-half of 1 per oent.
No,
Valuation
108 S 392,287
184
547,182
595
1,002,790
345
547,319
714
3,584,302
2,151
3,088,653
396
717,209
733
1,422,380
515
799,822
1,371
5,707,900
300
205,067
1,560
1,938,831
364
893,714
194
555,929
142
342,713
9,727 $22,406,698
f~~:alt940
+190
+ 2
- 32
+ 67
+ 9
+ t
+ 37
+ 13
+ 12
- 19
- 10
+ 22
- 21
+ 54
+ 40
-
2
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
,.---Texas--v---United States~
August 1 to Maroh 31
August 1 to March 31
This season
Last season
This season
Last senson
Cottonseed reoeived at mills
(tons) .. . .. . ........ . ..... .
1,059,288
895,040
4,286,714
3,974,155
Cottonseed orushed (tons) . ... .
992,285
915,117
3,708,505
3,777,965
Cottonseed on hand Maroh 31
(taus) ... . ... .. ...... . .... .
82,750
34,991
616,991
316,816
Produotion of produots:
Crude oil (peunds) ......... . 303,080,487
266,238,498 1,187,725,834 1,193,710,185
Cake and meal (tons) ..... . .
463,021
438,992
1,646,284
1,705,857
253,078
Hulls (tons) . . .. ......... ..
234,361
934,726
954,387
245,033
Linters (running bales) . . . . . .
212,644
1,002,485
965,190
Stooks on hand Maroh 31:
Crude oil (pounds) ... ..... . 22,463,827
26,460,047
69,438,440
68,419,521
64,477
Cake and meal (tons) ...... .
51,084
245,634
175,093
91,539
32,163
Hulls (tons) ..... ......... .
197,563
80,874
69,397
97,214
Linters (running hales) ..... .
258,458
318,687
SOURCE: Bureau of Census,
stepped up operations in order to meet the current demand for
products and to make scheduled deliveries on earlier commitments. The volume of cotton consumed totaled 854,200 bales,
which was more than one-third greater than a year ago and
exceeded the previous maximum established in January this
year by nearly 11,000 bales. Although demand for cotton
goods fell off somewhat during the latter part of March and
early in April, numerous inquiries were reported for industrial
fabrics and for products needed by converters to fill Government contracts. Prices of cotton goods showed further increases
during March and early in April. On April 7 the average price
of print cloth at mills in the United States was at the highest
level in nearly four years and about 50 per cent above that
of a year ago. Purchases of raw cotton by processing establishments during March closely approximated the amount consumed, and although the total of 1,911,000 bales on hand at
the close of March was one-fifth greater than a year ago, jt
was sufficient for only two and one-fourth months' operations
at the March rate of consumption.
Spot cotton prices in the United States showed a further
increase during the final week of March and since that time
they have shown little 11et change. Current prices are only
moderately below the highest level reached since August, 1937,
On April 15 the price of cotton, middling, 15/16-inch staple,
in ten spot markets averaged 11.13 cents per pound, as against
10.66 cents a month earlier. Cotton in the Government loan
is being released to producers at a substantial rate.
Exports of cotton from the United States totaled only
97,300 bales during March as against 434,000 bales in the
corresponding month of 1940. During the first eight months
of the current season foreign shipments of American cotton
averaged slightly more than 100,000 bales monthly.
CRUDE OIL PRODUCTION-(Barrels)
Maroh, 1941
Inorease or deorease in daily
average produotion from_
Total
- .
Dailyavg.
Feb., 1941
produotion
produotion
Maroh, 1940
5,426,650
175,053
North Texas .. .............. .
+ 2,553
- 11,571
West Texas ......... , ... ,., ..
8,308,150
268,005
+ 2,048
- 36,230
East Texas ..... . ........... . 14,305,450
461,466
+13,682
- 29,542
6,455,250
208,284
South Texas ................ .
+
5,090
- 50,484
Texas Coastal.. ............ ..
7,877 ,450
254,111
50
+ 3,006
Total Texas. . . . . . .
New Moxioo.................
North Louisiana .... .. ........
-42,372,950
-3,305,700
2,177,500
+
1,366,869
106,636
70,242
-124,821
- 6,306
2,089
+
Total Distriot...... 47,856,150
1,543,747
-129,038
SOURCE: Estimated from Amerioan Petroleum Institute weokly reports.
+23,873
+ 4,423
+
615
+28,411
CRUDE OIL PRICES-(40 gravity and abovo)
Mar. 31,1941 Mar. 31 , 1940 Feb. 28, 1941
North and west oentral Texas ......•.........
$1.03
SI.08
$1.03
East central Texas ............. . ........... .
1.12
1.17
1.12
Texas Gulf Coast ..................... . .... .
1.28
1.38
1.28
West Texas-New Mexioo ........ . . , •.... . , .
.95
1.02
.95
.99
North Louisiana ............ . . ........... '"
1.10
1.05
1.10
Enst Texas (Oat price) ....... ..... ..... .. , ..
1.15
1.10
SOURCE: The Oil Weekly, Houston, Texas.
RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT THE PORTS OF
HOUSTON AND GALVESTON-(Balcs)
Maroh
Maroh
Febrnary
August 1 to March 31
1941
1940
1941
This season Lnst seaB OD
Reoeipts ............ .... .
98,475
248,977
100,143
1,679,126
3,017,4410~
Exports(for'gn & ooastwise)
104,306
281,269
74,749
791,076
3,090,
Stooks, end of month . . . .. ] ,909,691
1,457,794
1,961,039
CONSUMPTION, STOCKS, AND EXPORTS OF (;OTTON-(Bales)
Maroh
Maroh
Fobruary
August 1 to Maroh 3\
Consumption at:
1941
1940
1941
This season Last se080n
Texas mills ......... '"
21,157
]0,507
19,368
103,610
92,960~
United St,ate8 milis .. ...
854,170
027,194
793,026
6,075,096
5,330,9
U.S. stooks-end of month:
1,500,334
1,905,413
In oonsnming cstab'mts. 1,911,238
Publiostg. &. oompresses. 13,243,573 11,409,520 14,038,917
E:tjlorts rrom U. S, to:
1 636,723
United Kingdom. . . . . . .
4,362
110,795
12,920
344,350
'668,984
Franoe...... ... ..... ..
None
51,080
None
None
442,420
Italy.... . .... . ...... ..
None
57,288
None
None
18,992
Gormany.. . . . . . . .. ... .
None
None
None
None
980,232
Other Europe .... : . . . ..
26,196
62,400
8,435
190,238
740,060
74,480
57,641
9,986
853,34 2
'. ::::
77,799
29,256
237,768
i~r~~be~ ·oo~·~tri~".
Total experts. '.".
5~:~~~
97,292
438,842
60,597
829,992
-
5,350,353
r)
I,
MONTHLY BUSINESS REVIEW
May 1, 1941
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Complied by the Board of Governors of the Federal Reserve System)
"-
INDUSTRIAL PRODUCTION
I.
0
"" "'"
,.0
150
150
140
140
130
120
'\
IJO
80
rv
I IV
\
/
100
90
I
I20
I 10
)
-\
,N
130
J
J
I00
v
80
70
19'6
1937
1938
1939
1940
194/
~ederal Reserve index of physical volume of produc-
_on adjusted for seasona l variation, 1935-39 average
- i 00. By months, January, 1935 to March, 1941.
... ,...
DEPARTMENT STORE SALES AND STOCKS
120
Ito
110
!r
100
90
80
?
r"V
" N s'LEG
1\/
I00
j'J
90
Iv'
80
'--~/
'"
--"..r-t-?
80
J
J
r
...J/
70
'''/
60
SO
193!S
1936
1937
1938
1939
1940
1941
~~~eral Reserve indexes of value of sales and stocks,
•
i~sted
o.
for seasonal variation, 1923-25 average
By months, January, 1935 to March, 1941.
WHOLESAL.£ PR ICES
=
... ,""
nc,0lWT
110
100
100
.ail
90
eo
80
10
70
-60
60
Volume of industrial output continued to increase in March and the Board's seasonally adjusted
index rose from 141 to 143 per cent of the 1935-39 average. Activity increased further in most
durable goods industries, particularly in those producing machinery, aircraft, ships, and armament.
Steel production increased to about 100 per cent of rated capacity.
Automobile production, which usually increases considerably in March, showed little change from
the high rate reached in February. In the fi.r st half of April output was reduced considerably owing to
a shutdown at plants of the Ford Motor Company during an industrial dispute which was setded about
the middle of the month. Retail sales of new and used cars advanced to new peak levels in March and
dealers' stocks at the beginning of April amounted to about a month's supply at the current rate of
sales. Output of lumber, which had been sustained at unusually high levels during the winter months,
rose less than seasonally.
Activity in the textile and shoe industries increased further in March. Cotton consumption rose
to a record level of 854,000 bales and there was also an increase in rayon deliveries. At wool textile
mills activity was sustained at the peak rate reached in February, not showing the usual large seasonal
decline, and in the chemical and rubber industries further advances were reported.
Bituminous coal production rose considerably, while output of crude petroleum was maintained in
March at about the rate that had prevailed in the four preceding months. In the first half of April coal
production declined sharply, however, as most mines were closed pending conclusion of contract negotiations between mine operators and the miners' union. Production of nonferrous metals continued in
large volume in March and deliveries of refined copper showed a sharp rise as domestic production Was
supplemented by supplies received from South America.
Construction contract awards rose sharply in March and were larger than in any month since the
middle of 1930, according to the F. W. Dodge Corporation data. The rise was chiefly in awards for
publicly-financed work, which had been reduced considerably in January and February, and in private
nonresidential projects, particularly factory construction. Awards for private residential building,
which had been unusually large during the winter months, showed less than the customary seasonal
rise in March.
DISTRIDUTION
In March distribution of commodities to consumers was sustained at the high level reached in
February. Sales at mail-order houses and department stores increased seasonally and variety store sales
showed more than the usual seasonal rise_
Freight-car loadings increased by about the usual seasonal amount. Loadings of coal and grain
rose considerably, while shipments of miscellaneous freight, which in previous months had risen
steadily, on a seasonally adjusted basis, showed a smaller increase than is usual at this time of year.
COMMODITY PRICES
50
50
19l1S
~35
1917
1938
1939
1940
1941
~C{~au of Lahor Statistics' indexes, 1926 = 100.
uc t er" includes commodities other than farm prodts and foods. By weeks, January 5, 1935 to week
ending April 12, 1941.
MEMBER BANKS IN 101 LEADING CITIES
I 1
u. S. GaIT
.t::~ANS
1
I4
I
,../
OBLIGATIONS
/
r~ L
V
--
-...
r
~~·tl '
10
Io
,-j....-/
./
4
I
1935
1936
LDANS TO DROKfRS
' ANO DEAlERS
J
-r
1937
1938
Prices of basic commodities continued to advance sharply from the middle of March to the middle
of April. There were substantial increases in prices of domestic foodstuffs and further advances in
burlap, cotton, rubber, and lead. Increases were also reported in wh~le~ale prices of a .number of manufactured products and the general index of the Bureau of Labor StatistIcs rose two POInts to 83 per cent
of the 192 6 average.
Informal action was taken by the Government to discourage price increases of some additional
industrial materials and maximum price schedules were established for steel, bituminous coal, secondary
and scrap aluminum and zinc, and iron and steel scrap. Sharp reductions in prices of some kinds of
nonferrous metal scrap resulted. Announcement of an expanded Federal purchase program for hog,
dairy, and poultry products was followed by price increases for these and related products.
BANK CREDIT
Total loans and investments at reporting member banks in 101 CltJes increased during March
and the first twO weeks of April. Commercial loans continued to rise substantially, and holdings of
United States Government securities increased further, reflecting purchases of new Treasury offerings.
UNITED STATES GOVERNMENT SECURITY PRICES
OTHER SECURITIeS
\"q
PRODUCTION
90
,,/
70
1 93~
. Industrial activity in~reas:d further in ~ar~h but declined somewhat in the first h alf of April
OWIng to. t.emporary reductl~ns In output of bItumInous coal and automobiles. Wholesale prices of many
commodItIes advanced consIderably and the Government took steps to limit price advances of SOme
additional industrial materials.
1939
-
1940
o
1941
C ednesday figures, January 2, 1935 to April 9, 194~.
~lmmerci a l loans, which include industrIal and agrlrural loans, represent prior to May 19, 1937
SO-called "Other loans" as then reported.
*
Prices of United States Government securities declined irregularly from March 15 to April 9 but
s bsequently rose slightly. The 1960-65 bonds showed a net loss of about
of 1 point on April 15,
f~llowing a rise of about 3!4 points in the previous mo.nth. The 'yield. on this issue On April 1 5 was
2.14 per cent, compared with 2'.03 per cent at the ali-tIme peak In prIces on December 10, and 2.30
per cent at the recent low in prices on February 15.
@FedFRASER