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MONTHLY BUSINESS REVI EW of the Volume 30 FEDERAL RESERVE Dallas, Texas, May 1, 1945 DISTRICT SUMMARY Torrential rains and floods over much of the eastern half of the Eleventh District caused widespread damage and delayed further the planting of early crops. In the wester~ part of ~he district, recent rains were beneficial since the topsoil was drymg out in some areas. On the basis of the April 1 condition, a record wheat crop for Texas is forecast. Livestock ranges s~ow~d a marked improvement in March and the first half of AprIl. LIV~. stock are gaining flesh rapidly and are in generally good condition. An exceptionally large lamb crop is in prospect. ~he value of construction contracts awarded increased sharply m March and was at the highest level in about twO years. The large ~o.tal for March represented primarily contracts let for war facIhty projects which had been approved earlier in the year. Crude petroleum production continued to expand slightly to supply the volume requested by the Petroleum Administrator for War. Well completions in this district during the first quarter of 1945 were about 38 per cent greater than in the same period last year. Consumer buying at department stores during ~arch was 18 per cent larger than in that month last year. ThIS year-to-year increase was slightly less than the average gain for the first quarter. BUSINESS The dollar volume of sales at reporting department stores in ~arch was 27 per cent above those in February and 18 per cent higher than those in March last year. Data from a smaller sample of weekly reporting firms show that sales during the first two weeks of April were 6 per cent below those in that period last year, reflecting the effects of the difference in ~he dates of Easter this year and last year and the closing by many stores on Saturday, April 14, following the death of the President. Sales during the first quarter of this year were 19 per cent above those reported for the same period last year, thus indicating a definite continuation of the upward trend which has been in progress since the beginning of the war. Despite these heavy demands on merchandise, firms have been able to maintain their stocks at approximately the same level of a year ago. The dollar value of stocks at the end of March increased 14 per cent over a month ago which represents a slightly larger than normal expansion at that season. The ratio of collections during March to regular accounts outstanding at the end of the month was 69 per cent. This ratio has flUctuated between 60 per cent and 69 per cent since the latter part of 1942. About one-half of the sales at reporting department stores in March were on a cash basis, representing approximately the same percentage as in February this year and March last year. Sales at reporting furniture stores in March increased 13 per cent from a month ago and 4 per cent over a year ago. Although cash sales showed larger percentage increases, the relative importance of these sales continues to be very small since such sales represented only 23 per cent of total sales in March. Stocks on hand at the end of March remained at the same level as those of a month earlier but were 5 per cent lower than a year ago. According to Dun and Bradstreet, Incorporated, there was only one business failure with liabilities of $4,000 reported in this district during March. In the first quarter of this year, twO BANK of Dallas Number 3 business failures were reported with total liabilities of $14,0 00, as compared with no failures reported during the same period last year. AGRICULTURE Torrential rains late in March and in early April throughout most of the eastern half of Texas and northern Louisiana caused serious floods in the territory drained boy the Trinity, Brazos, Sabine, and Red rivers and their tributaries. While the full extent of the damage is unknown, the situation is critical over large areas in north east Texas and northern Louisiana. Planting operations, which were already behind schedule because of wet soil, have been delayed further and considerable acreage intended for corn and other early crops probably will be abandoned or diverted to other crops. Range conditions throughout most of the district have shown a seasonal improvement brought about by mild temperatures and the ample moisture supply. Livestock are in good flesh and are moving to market in considerable volume. Texas farmers indicated on March 1 that the total acreage to be planted in the State for all major crops, except cotton, would be virtually the same as in 1944, but due to the diminishing supply of farm labor there is a continued tendency to shift to crops that can be planted and harvested largely with machinery. Increases in total acreage planted are indicated for winter wheat, oats, rice, peanuts and all tame hay but significant decreases are in prospect for corn and sorghums with slight reductions indicated in acreage planted to barley, flax, Irish potatoes, sweet potatoes, soybeans and cowpeas. However, acreages actually planted may turn out to be larger or smaller than indicated by reason of weather conditions, sharp price changes, or in response to appeals to meet war production goals. Reflecting the favorable seeding conditions last fall and the above-normal moisture supplies during the winter, the reported condition of Texas wheat on April 1 was one of the highest of record. Moisture supplies are excessive in north central Texas and are now plentiful in most other wheat producing areas due to the general rains recently in west Texas. The April 1 estimate of the Texas wheat crop indicates a record production of 75,420,000 bushels, which is 1 per cent above the 1944 record crop and 2~ times the 10-year average of 30,337,000 bushels. The estimate for the 1945 wheat crop indicates a yield of 15.0 bushels per seeded acre, as compared with 16.8 bushels last year and 7.2 bushels for the 10-year average. Although some damage was caused by heavy rains and hail late in March in north Texas onion and potato areas; in the east Texas tomato belt; and in the winter garden district, general conditions in the commercial vegetable areas are extremely favorable for most growing crops. Planting operations are well advanced and the mild temperatures and good moisture conditions proved particularly favorable for the development of such crops as snap beans, cantaloups, green corn, cucumbers, tomatoes and watermelons with indications that these crops will reach the market earlier than usual. Production of oranges from the 1944 bloom is now estimated at 4,000,000 boxes, representing an increase of 5 per cent over earlier predictions and is 13 per cent above the record production of 3,550,000 boxes during the previous season. Approximately 90 per cent of the Texas grapefruit crop was reported harvested by April 1, although carlot This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 movements, which are well above the total of last season, are continuing in considerable volume, and indications arc that this season's crop will establish a new production record. Ranges and farm pastures are above average condition in all major areas of the district, although additional surface moisture is needed in the Panhandle, west Texas, and in local areas in New Mexico. N ew range grasses and pasture feeds are furnishing from good to excellent grazing throughout most of Texas and prospects for good grazing continue favorable. Although surface moisture is needed over much of the sheep area to revive range feeds which were retarded by low temperatures in early April, winter weeds and grasses provided good early grazing and sheep are generally in good condition, being reported at 87 per cent on April 1, representing an improvement of 2 points over March and 3 points above the 20-year average. The lambing season began early this year and an exceptionally large crop is in prospect. Spring shearing has started in some counties and the movement of fat mutton lambs is expected to reach considerable volume during May. Mohair production in Texas during 1944 is estimated at 18,200,000 pounds by the Department of Agriculture, indicating an increase of 3 per cent over that in 1943 and represents about 88 per cent of the total mohair production in the United States. Reflecting the effect of the near record total production, the record average clip per goat and the record price received per pound, cash income from Texas mohair in 1944, which amounted to approximately $11,102,000, is the highest of record. Mid-March prices received by Texas farmers, as reported by the Department of Agriculture showed moderate gains for wheat, grain sorghums, rice, sweet potatoes, cotton, chickens and citrus fruits. Prices received for all meat animals were higher than in the preceding month and considerably above those in March a year earlier. On the other hand, declines were indicated for Irish potatoes, peanuts, eggs and hay, while prices for such items as corn, oats, barley, cottonseed, soybeans, butter and butterfat were about at the same level as in February. CASH FARM INCOME IN TEXAS l iN MILLIONS OF DOlL.ARS) 2 ooo1r----------.:.---~----------------,2000 ~ -: .•. GOVERNMENT PAYMEms r/fi L.lvESTOCK CROPS I ~OO'I---------------- _ _ _ _ _ _ _ _ I~OO IOO O)I------------------~~17.fiw.~~ 1000 smaller marketings in the earlier months of 1944. Price trends covering farm products since the beginning of the present war have followed about the same broad pattern which developed during World War I, advancing rapidly during the first phases of the war, but after reaching a more favorable relationship to rising retail prices, the increase in farm prices moved at a more moderate pace in 1944. Although production costs have increased considerably since the start of the war due to the sharp upward swing in farm wage rates and the relatively high average prices paid for commodities, the net farm income in the State has increased substantially. The greatly improved cash position of Texas farmers is reflected in rising bank deposits in agricultural areas; in a general reduction of farm debt; in an advance in farm values and an increase in farm sales, especially for cash; and in a marked increase ill sales of rural retail stores. The major sources of cash income in Texas have been relatively the same since 1940. The portion of cash farm income derived from livestock increased from 41 per cent in 1940 to 44 per cent in 1944. Government payments further declined in importance, representing only 4 pcr cent of the total in 1944, as compared with 15 per cent in 1940. The record wheat crop of the past year, raised the food grains group to a position of major importance as a source of income from field crops, with income OASH FARM INOOME (Millions of dollars) ~---Texns Fivo S t a t e s ° 1044 1043 1042 1040 1940 1044 1048 1042 Total farm incomo .... 1.246.8 1,242.0 080.8 506.0 2,207.7 2.138.8 1.760.5 1,046.6 Orops.. . . . . . . . . . . . 054.8 008.7 405.7 263.1 1,143.5 1.037.2 402.6 840.5 Livestock and livestook products ... 647.8 579.0 403.9 247.3 075.6 1.010.3 810.9 440.' Govcrnment payments ........... 44.2 54.3 00.2 142.7 80.5 88.0 01.3 102.1 Principal orops: Ootton ............ 207.0 209.0 228.8 214.0 139.0 424.1 413.7 367.1 Oottonseed . .. . .... 44.5 38.9 44.7 21.1 61.4 31.1 68.7 60.5 Food grainst ....... 116.0 70.5 67.5 80.9 33.1 241.0 154.2 162.0 Wheat .......... 39.9 86.4 44 .5 20.0 173.5 74.4 102.7 62.1 Foed oroP4 ........ 05.4 09.7 27.9 30.2 15.8 O .S R 103.0 53.8 Oorn ............ 11.8 18.5 11.0 5.5 10.0 18.3 20.1 18.1 Oil bearing cropsl .. 20.1 10.9 18.0 5.4 7.6 38.2 28.3 27.2 Peanuts ......... 25.0 6.0 18.0 17.0 5.1 88.7 24.1 26.8 All vegetableso ... . . 82.4 75.0 44.0 20.4 148.0 61.1 153.1 88.1 rrish patatoes .... 7.6 4.8 4.1 1.8 13.0 12.8 5.4 9.2 Truck crops . .. . . 71.0 05.5 41.4 35.3 25.4 121.2 120.0 67.3 Fruit. ...... . . ..... 47.7 40.5 25.0 8.9 75.0 17.6 02.0 42.9 Oitrus fruits ..... 34.8 32.3 21.2 0.5 45.0 9.1 39.2 27.2 oArizonn, Louisiana. New Mexico, Oklahoma and Toxas. tIncludcs whoat, rye rioo nnd buokwheat. tIncludes corn. ants, barley, grain sorghums nnd hny. iIneludes flaxsecd !rennutl and soybeans. °Includes truck orops, potatoes, sweet potatoes. dry doiblo beans and' ry fiold peas. SOUROE: United States Department of Agriculture. PLANTED AORES-TEXAS AND FIVE STATES (Thousnnd nores) ----Toxas Fivo S t a t e s ' ed 1044 In%C:J 1944 Corn .. " ........ " .. "" 5,172 5,074 4,608 0.000 8.521 7,812 Winter wheat . . . . .. . . . . . . 4,640 4,450 5,028 4,540t 4.450t 5,028t Oats .. "" ...... " .. "" 1,702 1,003 1.000 3,465 3,440 3,608~ Barley. .. .... .. ......... 282 414 393 7600sl 8 16& 734 Flax.................. .. 321 30 00 12 1 11 Rice.................... 275 302 404 782" 900' 966' All sorghums .......... ". 0,450 8.a18 7,632 0,088 11.208 10,254 Irish potatoes... .. ... . . . . 54 07 63 140 178 164 Sweet potatoes........... 59 68 60 177+ 100+ 18830 13 7 137+ 115+ 94Soybeans alono·.... .. . .. . Cowpens alono·...... . .. . 528 282 259 774+ 423+ 388Pcanuts alono·... . ....... 406 800 886 086+ 1,161+ 1,206All tame hay. .. .. . . . . . . . 1,135 1.023 1,630 2.005 3,384 3,401 ,Short-timo avcrage. ·Grown alone for all purposes; partly duplicatod in hay aorcage. ·Arizona. Louisiana, New Mexico, Oklahoma. Texas. tTcxns oaly. tArizona. Now MexiCO' Oklahoma, Toxas. "Toxns, Arizona, Oklahoma. "Louisiana and Texas. +Toxns, Louisiana, Oklahoma. SOUROE: United States Department of Agriculturo. t9'34~3 Cash Farm Income-The cash income of farmers in Texas and the Eleventh Federal Reserve District increased further during 1944, reflecting the continued high production rate and favorable agricultural prices. The accompanying chart illustrates the rapid rise in cash farm income in Texas to an all-time peak of $1,247,000,000 in 1944, which exceeds that in 1943 by about $5,000,000, is more than double that in 1940 and is 76 per cent more than the 1925-1929 average. Cash income from crops in Texas was abou.t 8 per cent larger in 1944 than in the preceding year, but income from livestock and livestock products declined about 5 per cent, due to lower prices and t9'3r'13 In1:~ DOMESTIC OONSUMPTION AND STOOKS OF OOTTON-(Bales) Match Marth Fcbruary August I to March 31 1045 1944 1045 This season Last season Oonsumption at: Tex .. mills.............. 17,641 17,027 15,530 139,386 126,526 United States mills. ...... 857,693 903,538 781,550 6.510.433 6,806,716 U.S. stooks-cnd of month: [n consuming 08tahm·ts. .. 2,237,465 2,200,108 Puhlic stg. & compresses .. 11,724,034 10,800,059 8 MONTHLY BUSINESS REVIEW CASH FARM INCOME (Thousands of doUars) ~-Ja Hlnry I045i- - - - T o \ . l1reccipts~Recciptafrom-- January January Crops Livostook· 1045 194<1 0,827 2,005 12,702 12,088 0,470 18,531 18,653 1 ..... .. ... 12,052 4,004 2,200 0,894 4,858 O~I~I~,~xico ........ . ..•..... . •...... 14,002 19,010 33,102 20,830 45,851 32,583 78,431 91,208 'I'cxos ... ~'. : : : :: :: : : :::::: :: :: :::::: : ~~~\~~~ :::::::::::::::::::: Total. . . . . . .. .. .... . ... .. . 80,516 63,237 140,753 ·'ncludes receipta from the sale of livestock and livestock producta. SOURCE: United States Department of Agriculture. 154,237 LIVESTOCK RECEI.PT8-(N umber) ~--Fort Worth------Snn Autollio~- March 1945 56,333 22,017 47,007 05,813 March 1944 41,284 13,394 127,837 56,321 February 1945 38,271 21,450 35,805 52,002 March 1945 20,019 13,600 7,181 22,811 March 1044 14,037 16,606 13,276 9,371 February 1945 17,503 15,576 0,867 18,500 COMPARATIVE TOP LIVESTOCK PRICES (Dollnrs por hundred weight) San Antonio - - - - - F o r t Worth Mareh February Maroll February Mareh Murch 1944 1045 1945 1945 1044 1945 SI4.50 $15.00 $15.25 SI6.00 S10.35 ~ecfksteCl'8 .... . ......... . S16.25 M.OO M.OO n.50 H~ er steers ........ .. .. 16.00 'iri6 15 .75 10.00 B Cl ers and year lin!!' .... . 10.50 12 .25 12.00 12.00 12.25 13 .00 Cur"er caws ........... . 12.75 14.25 14 .50 14 .75 M.50 14.26 14.60 13.65 14 .55 14.55 14.55 13.75 M.M 14 .50 15.00 15 .00 16.00 16.00 15.25 .is:ilO ~:::.::::::::::::::::: COTTONSEED AND COrrONSEED PRODUCTS _ - - Texas United Statca--August 1 to Marolt aI August I to Mareh 31 Last SORSOIl This SCIlSOIl Last selUlOII This season Cottonseed received at mills 922,989 898,72 1 4,191,022 3,863,222 Jlons} ......... . . ....... . . . 765,736 851 ,840 3,507,787 3,505,510 ttonseed crushed (tons) .. . . . Cottonsecd on hUlld Mareh 31 188,890 01,544 705,741 446,488 (tons) .................... . Production of products: I,OOl,a96 1,084,116 255,330 233,847 g~do oil (thousand Ills.) . .. . 1,625,847 1,600,479 O 403,910 361,807 H U and menl (tons) ... ... . 81R,887 812,547 200,368 178,570 Liu s (tons) .............. . 1,046,821 1,025,063 255,081 nters (running bales) .. .. . . 234,827 Stocks 011 hand March 31: 33,437 30,770 10,577 grudc oil (thousand lbs.) . ... 11,553 63,687 104,503 14,640 Hake and meal (tons). . .. . .. 26,007 21,554 00,511 4,370 10,038 .ulla (tons) . . .. .. .. .. .. .. . 260,028 LIDters (running bales}... .. . 08,769 08,758 27,446 SOURCE: Unitod States Burenu of Consus. from food grains t epresenting approximately 9 per cent of the total. As indicated by the accompanying table, the amount of cash income from truck crops, oil bearing crops and fruits in~reased substantially and accounted for 13 per cent of the total lUcome in 1944, as compared with 7 per cent in 1940. FINANCE The Seventh War Loan Drive will open on May 14 and extend through June 30, although sales of all series of war savings bonds and Series C savings notes processed through Federal Reserve banks between April 9 and July 7 will be counted in the drive figures. The goal for the drive has been set at $14,000,000,000, of which $7,000,000,000 is to be raised through the sale of Government securities to individuals, the largest goal ever set for individuals during a war loan drive. One of the primary objectives of the drive is to sell the largest possible amount of securities to individuals in order to minimize the dangers of inflation. The goal for individuals includes a quota of $4,000,000,000 to be obtained from the sale of Series E war savings bonds. There will be an intensification of efforts to increase sales of Series E war savings bonds through enlarged participation in payroll savings plans, as well as through direct sales to individuals. . The over-all quota for T exas during the Seventh War Loan Drive has been set at $430,000,000, as compared with $4 14,000,000 in the previous drive. The quota of $3 12,000,000 for individuals is $8 7,000,000 larger than in the previous drive, while that for corporations, amounting to $118,000,000, is $71,000,000 smaller. The goal of $168,000,000 for Series E war savings bonds, which constitutes a part of the total quota for individuals, exceeds that in the previous drive by $63,00 0,000. The daily average reserve balances of member banks in this district, after declining temporarily during February, rose to a newall-time peak of $631,000,00 0 in March and remained at the higher level during the first half of April. Due to the conversion of reserve-exempt war loan deposits into private deposits which require reserves, the required reserves of member banks have been rising steadily and in March averaged about $30,000,000 more than in December, 1944 when they were at a low point following the Sixth War Loan Drive. Despite the increase in reserve balances during this period, average excess reserves in March were about $18,000,000 lower than in December. The circulation of Federal Reserve notes of this bank, which rose substantially during February, showed little net change between the end of February and the middle of April. On April 15 total circulation of $557,000,000 was $125,000,000 above that a year ago, The deposits of the weekly reporting member banks, after increasing substantially during the first half of March, showed a net decline of $23,200,000 during the four weeks ended April 11. During this period, these banks had withdnwals of $33, 000,000 from Government accounts and of $3 ,000,000 from interbank deposits, but these withdrawals were offset in part by an increase of $13,000,000 in adjusted-demand and time deposits. The funds to meet this decline were obtained principally through a reduction of $11,400,000 in balances with correspondent banks, a decline of $5,000,000 in reserves with the Federal Reserve Bank and a decrease of $3,100,000 in loans and investments. Total loans of the weekly reporting banks, which followed an irregular downward trend the first two months of the year and then increased sharply early in March, have declined steadily in recent weeks. The net decrease over the period from March 14 to April 11 of $6, 000,000 reflected declines of $5,000,000 in commercial, industrial and agricultural loans, which usually decrease during the early months of the year, and of $1,60 0,000 in loans to others for security trading, which were offset only in small part by increases in other classes of loans. During the four-week period between March 14 and Aprilll, these banks made net additions of $2,900,000 to their holdings of investments and made several shifts in their investment portfolios . The shifts were accomplished through reduction of $1,400,000 in holdings of Treasury notes and of $9 00,000 in Treasury bills and an addition of . $4, 3 00,000 to holdings of Treasury bonds. The total investment holdings of these banks on April 11 amounted to $1,270,000,000, which was approximately the same as at the end of 1944. The principal net changes during the period have been a substantial reduction in Treasury notes and a corresponding increase in certificates of indebtedness brought about by the exchange of the maturing and called Treasury notes for the new issue of certificates. INDUSTRY Due largely to such factors as machine f:l1lures, unusually large rejections of inferior materials, lack of experienced supervisory personnel and skilled workers, lags in war production programs have been experienced in a number of Texas industrial plants since the middle of December, 1944. On the other hand,:J large percentage of the "must" plants have accelerated production in recent weeks and are now either meeting production quotas or are materially reducing accumulated lags by better 4 MONTHLY BUSINESS REVIEW utilization of available men and machines. The total over-all employment in the major Texas industries and in military establishments showed a slight increase in February over that in the preceding month, with indications that additional workers will be need~d within the next four months in all industries except shipbuilding. Significant employment gains were reported for plants producing aircraft, ordnance, ~nd petroleum products and moderate gains were shown for the lumber industry, machinery manufacturers, synthetic rubber plants, cotton mills, and in civilian employment in military establishments. On the · other hand, a sharp decline in employment was reflected at shipyards and small declines were indicated for plants producing nonferrous metals,. iron and steel, and chemicals. Continued declines in employment in shipyards are anticipated as existing contracts covering dry cargo vessels are being completed rapidly and concentration on tanker construction will require fewer employees. Reflecting the effect of continued expansion of ordnance and other plants producing essential war supplies, the value of construction contracts awarded in this district rose sharply in March. The aggregate value of awards, amounting to $38,000,000, was approximately $20,000,000 more than in the preceding month, nearly double that for March, 1944, and represents the highest total awards since February, 1943. The value of all types of construction showed marked increases over that in February except utility construction, which continued at about the same level. The value of construction contracts awarded in the district during the first quarter of 1945 totaled $71,000,000, as compared with $47,819,000 for the same period a year earlier. Awards for manufacturing buildings accounted for the major portion of the increase, although moderate gains were indicated for utility construction. On the other hand, residential and public works construction during the period declined 61 per cent and 10 per cent, respectively, as compared with the first quarter last year. During the first quarter of 1945 ~lightly over 56 per cent of the total construction in Texas was privately financed, as compared with 27 per cent in the first quarter of 1944 and only 3 per cent in 1943, indicating a sharp movement away from publicly financed construction. Al! types of construction material except cement and cement products continue in short supply. Due to manpower shortages and lack of sufficient logging and transportation equipment, lumber production in this district was 20 per cent less in 1944 than in the preceding year and in the United States it was 6 per cent less. Production of 465,000 barrels of Portland cement at Texas mills during February was 88,000 barrels less than the output for January. Shipments of cement during February exceeded output, but as production in recent months has exceeded shipments, stocks on hand at the end of the month remained relatively high. Production of crude petroleum in the Eleventh District expanded further in March and the near record output of 2,333,000 barrels daily was about 14 per cent above that in March last year. Moreover, crude oil production in Texas during the month reached an all-time high with a daily rate of 2,158,000 barrels. Daily average production outside this district remained at about the same level as in February but was about 5 per cent above that in March, 1944. The Petroleum Administrator's April certification for Texas calls for a new high in crude oil output with a daily rate of 2,170,000 barrels, an increase of 10,000 barrels daily over the March certification; the increase to again come from west Texas fields. The increased production is con- CONDITION OF THE FEDERAL RESERVE BANK (Thousands of dollars) April 15, Apri115. 1945 1044 Total cash reserves ............................. .. S55~~~~ S54~~~~ Discounts for member banks ....... .. .•• ........... None Industrial advances .... .. ..... ........ ..... ...... . 3 699,005 400.907 U. S. Governmcnt securities ....... ............... . 699,005 401.000 Total earning Il8SCts ............................. . 644,547 Member bank rcscrve dcposits .................... . 526.389 556,066 Federal Rcscrvc Notes in actual circulation ......... . 431.884 March 15. 1945 $515.654 346 None 710.604 711.040 634.639 555.947 CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES (Thousands of dollars) April 11. April 12. Mareh 14. 1945 1944 1945 Total loans and investments . . ........ ... ........ .. $1.676,312 $1,382.028 $1,679,458 Total loans . .. .. .. . .. .. . .. . . .. .. .. .. .. . . . . . . .. . 406.407 333,295 412.451 Commercial, industrial. and a~riculturalloans... . 269.225 282,453 274,209 Loans to brokers and dealers In securities........ 4.702 2,477 4.387 Other loans for purchasing or carrying securities. . 50.527 32.404 52.139 Real estate loans. ...... ..... . . .... .. .. .. .. .. . 22.366 19.825 21.639 Loans to banks . .. . .. .. . . .. .. .. .. .. . . . . . . . .. . . 154 101 129 All other loans. . .. .. .. .. .. .. .. .. .. . . . . .. . . .. . 59.433 46,035 59,948 Total investments ..... ......................... 1.269.905 1.048,733 1.267.007 U. S. Treasury bills.. .. . .. .. .. .. .. .. .. .. .. .. .. 71,892 92.983 72,750 U. S. TrelUlury certificates of indebtedncss.. ..... 888.445 258.887 388.320 U. S. Trrasury notes.......................... 219.816 195.865 221.241 U. S. Government bonds . .. ................... 583.231 413.918 528,889 Obligations guaranteed by United States Gov·t. . 9.981 30.496 9.981 Other securities............................. . 40.540 47.584 45.826 Reserves with Federal Reserve Bank..... .. .. . . . . .. . 355.825 302.857 360.448 Balances with domestie banka.. . . . . . . . . . •• . . . . . . . . . 225.485 202.035 236.912 Demand dejlOSits-adjusted·. . . ......... .......... 1.252.969 1.055,979 1.252.311 Time dej)olllts........................... ... ..... . 238.744 174.252 226.464 United States Government deposits.... ............. 177,873 180.107 210.913 Interbank deposits....................... .... . .. .. 51~,008nOe 419.667 51~~:~ BorrowinR/l from Federal Reserve Bank . . . . . . . . . . . . . N NOlle ·Includes all demand deposits other than interbank and United States Government. less cash items reported as on hand or in process of collection. DEBITS TO INDIVIDUAL ACCOUNTS (Thousands of dollar.) March March Petg.ehange February Petg.change 1945 1944 over year 1945 over month Abilene ................. S 19.740 17.016 $ 17.213 +16 +15 Amarillo ................ 51.084 42.241 +21 41.037 +22 Austin .................. 97.966 103.455 -6 61.838 +68 Beaumont ...... ......... 61.893 53.565 67.087 +16 Corpus Christi. .......... 67.713 44.948 +28 48.617 tl~ 6.746 Corsicana ............... 6.687 +1 5.200 +30 583.680 Dnllas .................. 617.331 +13 510.804 +14 66.170 64.607 EIPaso ................. +2 69.383 +11 224.126 Fort Worth .............. 195.968 227.966 +14 -2 60.266 Galveston ............... 48.789 +15 37.267 +35 634.393 Houston ................. 564.375 603.167 +14 +26 12.604 Laredo .................. 11.448 10.522 +10 +20 33.339 Lubbock ................ 28.959 30.166 +11 tl~ MonroD, Ln .............. 18.973 18.683 17.106 +11 26,410 Port Arthur ............. 25.034 21,610 +22 9.444 t1g Roswell. N. M ........... 8.584 7.707 • +21 San Angelo .............. 16.008 14.003 +14 13.900 15 164.177 San Antonio ............. 143.081 +15 140.739 t 17 84.828 Shreveport. La.. . . . .. : .. 81.602 +4 73.172 +16 Texarkana· .............. 23.260 18.496 +26 19.324 +20 Tucson, Aril ............. 35.296 20.284 +21 38.429 +6 24.207 21.172 +14 21.420 +13 29.419 26.872 +9 25.309 16 30.262 27.696 Wichita Falla. " ...... '" +9 26.550 t 14 Y';:::::::::::::::::::: Total-24 eities . . . . . . . . .. $2.362.002 $2.098.886 +13 $2.001.507 + 18 ·Includes the figures of two banks in Texarkana. Arkansas, located in tbe Eil!hth District. GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS (Average daily figures-Thousands of dollars) Combined total Reserve city banks Country banks March March November December January February March Gross Gross Gross demand Time demand Time demand Time 1948 .......... $2.693.849 $232.879 SI.464.442 $136,259 $1,229.407 $ 96.620 1944. ......... 3.320.226 277.705 1.725.350 171,392 1.594.870 106.313 1944 ...... .. .. 3.844.475 333.158 1.977.295 210.317 1.867.180 122,841 1944 .......... 4.024.828 338.689 2.066.946 213.069 1.957.882 125,620 1945 .......... 4,104.746 345.591 2.090.671 218.338 2.014.075 127.253 1946 .....•.... 4.016.762 354.586 2.020.660 224.548 1.900.002 130.038 1945 .......... 4.050.000 367.380 2,045.585 232,600 2.004,416 134.780 SAVINGS DEPOSITS Maroh 31. 1945 Number of re~rting Bcaumont . .•............ Dallas ......•.•.•.•...•. EI Paso ................. Fort Worth .............. Galveston ............... Heuston ................. Lubbock ••.•............ Port Arthur ............. San Antonio ............. Shreveport. La ........... Waco ................... Wichita Falls . ........ . .. All other ................ Total ......... anka 3 8 2 3 ~ 2 2 5 3 3 8 68 105 Percentaae change in savings eposits Crom Number of Amount of eavings savinjIB March 31. February 28, depositors depoS its 1944 1946 11.961 $ 6.588.004 +28.3 + 2.3 105.409 54,360,977 +43.3 + 2.6 25.012 16.649,446 +43.8 + 3.0 37,788 25.265.846 +40.5 + 3.1 21.081 16.638.332 t21.4 + 1.8 89,271 53.794.950 30.0 + 2.2 798 543.556 +14.4 - 2.1 5,570 4.459,416 +24.9 tl.1 31.924 33.259.487 +36.4 2.1 31.318 20.300.265 +36.8 + 2.8 8.630 6.783.220 3U +10.1 6.719 4,145,686 t 14 .9 + 2.3 66.062 40.562.128 +80.2 + 2.2 431.543 $283.351.312 +84.2 + 2.6 I) MONTHLY BUSINESS REVIEW side red necessary in order to maintain stocks of west Texas crude oil at flexible operating levels. The Texas Railroad Commissicn s~t effective crude oil allowables for April to meet the productIOn requests of the Petroleum Administrator for War. Reflecting the continued expansion of production, stocks of above g::ound crude oil in this district increased about 3 per cent during March and the 122,319,000 barrels on hand at the end of the month was only slightly under stocks held at the same time a year earlier. Stocks outside this district also increased moderately during the month, but the 101,463,000 barrels on hand at the end of March were 7 per cent smaller than at the same period last year. Following the usual seasonal trend, drilling actlvlty in the United States increased in March, with total well completions for the first quarter of 1945 exceeding those in the same quarter last year by about 13 per cent, which represents approximately the increase in drilling requested by the Petroleum Administrator for War. Although drilling activity ill the Eleventh District continued at about the same level in March as in the preceding month, well completions for the first quarter, which totaled 1,841, represented an increase of 38 per cent over the 1,333 wells completed during the same period in 1944. Increased drilling activity in this district during the first three months of the year as compared with last year, occurred in all oil producing sections except in east Texas and south central Texas fields. The greatest drilling activity was concentrated in the Upper Gulf Coast and southwest Texas fields with increases of 66 per cent and 40 per cent, respectively, over that for the same quarter a year ago. Daily completions for the district as a whole averaged 20 wells during the first three months of this year, as compared with 15 wells daily for the same period in 1944. Mill consumption of cotton at United States textile mills during March totaled 858,000 bales, which is an increase of 10 per cent over the consumption in February, but is 5 per cent under that in March a year earlier. Cotton consumption for the first eight months of the 1944-1945 season totaled 6,516,000 bales, as compared with 6,806,000 bales for the same period last season, indicating a decline of 4 per cent. INDEXES OF DEPARTMENT STORE SALES AND STOCKS Daily averago sales - (1035·1080 ~ 100) ~----Unadjusted++ Mnrch Fobruary January 1045 1945 1045 District ..... 260 230 211 Dallas ...... 207 248 210 Hou.ton .. ... 255 231 103 Murch 1944 227 282 225 Maroh 1045 283 276 274 Adjusted February January 1045 1045 201 284 200 242 241 296 March 1944 247 252 202 Adjusted February Jnnuary 1045 1045 101 109 March 1944 08 8toc""-(1923.1025-100) March 1045 District ••..• 106 Unadiusted ++ February January 1045 1945 07 05 March 1944 101 Mnroh 1945 103 +tUnadjusted fer seasonal variation. BUILDING PERMITS Mnreh)045 Abileno ..... .... . Am.rillo ........ . Austin ......... . . Bonumont ....... . Corpu. Christi . . . . Dallas ......... .. EI Pnao ... .. .... . Fort Worth ...... . Galveston . . ..... . Houston ......... . Lubbock ........ . Port Arthur . . ... . San Antonio .. ... . Shrcveport, IAl ... . Waco ........... . Wichita Falla .. .. . No. Vnluation 13 5 4,065 87 221,130 147 187,538 182 157,391 175 271,628 720 623,458 60 26,640 342 567,896 84 45,062 201 5,076,803 III 113,010 08 3a,035 006 470,787 218 124,668 68 68,433 52 48,599 Percentago Percentage ehango valu.tion' from Jan.itoMar.al, 1045 ehan~e valuatIon Mnr.,1044 Fob.,1045 No. Valuntion irom 1044 - 64 - 73 38 $ 32,220 - 78 + 17 + 97 244 484,006 + 80 +227 2 300 543,788 +400 +221 + 01 476 314,733 + 34 +160 + 04 503 589,201 + 71 + 44 +112 1,834 1,415,168 - 33 - 34 + 30 164 147,615 + 41 + 52 + 46 855 1,816,075 + 69 2 - 30 180 105,158 - 38 +B13 +353 818 0,818,950 +360 + 185 - 37 970 437,144 +386 + 7 + 01 222 77,157 2 + 24 + 11 2,050 1,3J9,070 + 27 + 21 - 43 011 667,186 +177 - 40 - 37 174 214,955 - 28 + 45 +344 107 84,136 - 20 Total .. .. .. 3,62958,041,052 +214 +137 9,620 514,518,062 + 00 VALUE OF CONSTRUCTION CONTRACTS AWARDED (Thousands of dollars) Eleventh District-tetnl .. . Roaidential. .......... . All otltcr ............. . March 1045 S 38,058 2,482 35,576 Mnrch 1044 $ 22,206 6,423 16,783 Februnry 1045 5 17,800 1,103 16,607 Unitcd Stotes·-total ... . Residcntial. .. ........ . All other ............. . 328,874 26,943 301,031 176,388 35,164 141,219 140.057 10,300 127,657 January I to March 81 1945 1044 5 71,074 $ 47,819 11,562 4,536 66,538 36,257 616,780 65,770 551,001 472,867 101,022 371,845 ·87 8tatoa coat ef tho Rocky Mountains. SOURCE: F. W. Dodgo Corporation. WHOLESALE AND RETAIL TRADE STATISTICS Percentago change in: Stockst-Net sales Morch 1045 from Jan. I to March 1945 from Number March February Mnr. 31 , 1945 Morch Fobruary of Retail trade: 1045 1944 from 1044 19(4 1045 films Department .tores: +14 +2 Total lith Di!t +19 48 +27 +18 Dallas ... , 10 +3 +18 +21 +15 F W · .. · .... · 7 .. 10 -4 +21 +26 4 +24 Hart arth ........ -7 +4 +15 7 +13 +24 Sa~u~~~ .. : ........ +31 +18 28 o 5 +26 Sh Onto ....... 18 30 3 +15 O~ve~ort, La .... ~'7 +i4 +18 35 r 0 tlea ........ 22 +20 Retail furoiture: t~lllth Dist .... H .............. P ouston ........... &rtArthur ....... Wi~1i:.tonio . ... ... FaUn ...... Independont storea:. ~~homa ......... Nnt0M'.: ....... . . T~ OXIOO ....... ..... ..... ... r 54 4 7 3 3 3 +4 -0 +6 -0 +12 +36 CRUDE OIL PRODUC'rION-(Barrels) March 1945 -6 +13 +11 +4 +18 +30 +11 Total To ... .... .. . 66,900,500 2,158,371 3.220,350 2,179,200 103,882 70,207 Total District. . . . . . :t North TCWlS ................ . West Toxas ................. . E..t TOXllS .. ..... ......... .. South Tex .................. . Co..tal Tex ................. . Dailyavg. production 237,252 476,132 629,113 351,652 564,222 New MOlico .... ............ . Nortlt Louisiana .......... ... . :t Totol production 7,364,800 14,760,100 16,402,500 10,901,200 17,400,000 72,309,050 2,332,550 +3 Incron8c or decreaso in daily nverago production from March 1044 + 1,447 +134,167 + 45,994 + 60,275 50,267 + February 1045 982 +10,300 - 8,875 + 5,150 + 3,140 + +202,160 +10,607 - + 8,995 6,145 +277,010 18 + 1,558 +12,273 SOURCE: Estimated from Amerionn Petroleum Inatituto weekly reports. 368 151 120 951 +24 +8 +14 +17 +31 +13 +13 +26 +18 +8 +13 +16 LUMBER PRODUCTION-ARIZONA, LOUISIANA, NEW MEXICO, TEXAS AND Wholeanle trado:. Mnehineryequip't and 8upplica..... 3 +15 - 4 ~utomotlVo 8upplica 3 +22 +35 +" ' 1 ' GruBB.,'........... 6 + 5 +13 ~io 6 l:{r'drlos.... .. .. .. 27 - 6 + 8 2 - 18 ar .ware......... 13 +15 +13 +12 - 5 + t Surglonl CQuipmcnt. 4 +23 + I Tobacoo '" products. 3 -10 +15 -10 ·Compiled by United 8tates Buroau of Cenaus (wholesalo trado figuros preliminary). tstoclr:a at end of montb; tCbango leas than ono·half of ono per cent. +' _ UNITED STATEB-(Million board fcet) Yonr IOa9 1940 1941 1042 1048 1044 Ari"ona 110 120 131 143 152 208 Louisiana 1,037 1,076 1,143 1,232 1,166 062 New Mexico 106 113 115 122 119 98 Texas 1,137 1,271 1,880 1,384 1,274 806 SOURCE: Bureau of tho Cen8us, United Statoa Forcat Servico. Total 2,300 2,589 2,710 2,881 2,711 2,159 Un ited States 24,975 28,934 33,476 30,382 34,622 32,554 6 MONTHLY BUSINESS REVIEW THE 1944 RETAIL CREDIT SURVEY ELEVENTH FEDERAL RESERVE DISTRICT The Research Department of the Federal Reserve Bank of Dallas has completed the tabulation of data obtained from retail firms in the Eleventh Federal Reserve District in connection with the Third Annual Retail Credit Survey conducted by the Federal Reserve System. In this survey, covering the year 1944, data were obtained from firms in nine lines of trade in which the extension of credit to consumers is in sizable volume. The survey covered sales by types of transactions, accounts receivable, inventories, and other cW'rent balance sheet items. Reports were obtained from approximately 450 concerns from 23 cities throughout the district. The reporting concerns are fairly well distributed among the reporting lines and are located in widely separated geographical areas, although the n1'ljor portion of the reports were received from firms operating in the principal cities of the district. All reporting lines of trade, except household appliance, experienced an increase in sales during 1944, reflecting the continued expansion in consumer incomes and the large volwne of liquid resources held by individuals. It should be noted, however, that the rate of expansion in sales showed a marked slowing down during the year. Reflecting the large volume of consumer incomes, there was a further increase in cash sales, although the upward trend was not nearly so marked as in the preceding year. In all lines, except household appliance, the expansion in cash sales was as great as, or greater than, the increase in total sales, the increases ranging from 9 per cent for automobile dealers to 22 per cent for furniture stores. For all reporting lines, cash sales accounted for approximately 53 per cent of total sales during 1944, as compared with 51 per cent during 1943. Charge account sales were increased in the majority of reporting lines, but in all lines, except automobile dealers, auto tire and accessory stores, and household appliance stores, the proportion of charge account sales to total sales was smaller in 1944 than in 1943. There was a general decline in instalment sales; and in all lines, instalment sales constituted a smaller proportion of total sales during 1944 than during 1943 . Year-end inventories showed diverse trends in relation to those a year earlier, there being five lines in which decreases were registered and four in which there were increases. The most marked decline occurred in the case of automobile dealers where the diminishing supply of new and used cars was a major factor. In most lines, the reporting firms impro:ved their current financial position during 1944. The reporting stores in all lines added substantially to their holdings of Government securities and all lines, except jewelry and household appliance stores, had larger accounts receivable at the end of 1944 than a year earlier. The .auto tire and accessory stores, household appliance stores, and Jewelry stores made a large reduction in their holdings of cash a~d ba~k deposits but they also made correspondingly large reductions 111 accounts and notes payable. The ratio of current assets to current liabilities was especially large in the case of hardware and household appliance stores, but the ratio was above 3 to 1 in all lines. There is given below a brief. resume of developments in the several lines of trade covered by the survey. AUTOMOBILE DEALERS AND AUTO TIRE AND ACCESSORY STORES The sales of reporting stores in these two groups continued to expand in 1944, although at a slower rate than.in 1943. The 1944 sales of 60 automobile dealers were 8 per cent larger than in the preceding year while the business of 86 auto tirE' and acces- sory stores increased by 18 per cent. The operations of autoIllO' bile dealers were affected by the diminishing supply of new car! and in many cases by the smaller volume of used cars availab~c for resale. On the other hand, there was a tendency for repair business to expand and many firms were able to increase ~ volume of work in other phases of their business. The auto tlrt and accessory stores which in previous years had added supple· mentary lines of merchandise were able to increase the volumeO! their business. The changes in the character of their operat~oJll were also reflected in changes in the sales by type of transactlOJll and in inventories. In both lines, the proportion of total sale! represented by cash transactions was close to 50 per cent. Chargl account sales increased substantially in 1944 and represented I. somewhat larger percentage of total sales than in 1943. On ~: other hand, instalment sales showed a noticeable decline ball' in volume and in relation to total sales. The inventories of auto' mobile dealers showed a further sharp decline during 1944, r~ flecting in large part the diminishing supply of new and uSei' cars, but the stocks of auto tire and accessory stores increased b) 9 per cent. The firIllii reporting data on selected balance sheet items eyi· denced a continued trend toward greater liquidity. The autoIllO' bile dealers, in addition to experiencing a sharp decline in invell', tories, reduced substantially their current liabilities, and greatl) expanded ther assets in the form of cash and bank deposits, hold· ings of Government securities, and accounts receivable out· standing. At the end of 1944, the ratio of current assets to cutrent liabilities was 5.2 as compared with 3.1 at the end of 1943. At auto tire and accessory stores, the sharp decline in cash and bank deposits was offset largely by the rise in stocks and a decline in accounts and notes payable. The ratio of current asSetl to current liabilities at the end of 1944 was 5.3 as compared with 4.8 a year earlier. DEPARTMENT STORES Sales of 53 department stores showed a further expansion o! 15 per cent during 1944 as compared with the preceding year. As has been the case in other recent years, the volume of cash sales increased substantially, both in actual-amount and in relation to total sales. During 1944, approximately 56 per cent ~I the business transacted by department stores was on a cash baSI! as compared to about 54 per cent in 1943 . Charge account sale! increased during 1944 but instalment sales showed a moderate decline. In recent years, sales of soft g{)ods and luxury items haY! reflected a marked upward trend with the most pronounced increases taking place in the various items of ladies ready-tOwear. The diminishing supply of durable consumer goods halldied by department stores has been reflected in the decreasing volume of sales of those items. The sharp decreases in the sale! of many of these items have offset to some extent the marked expansion in sales of soft goods. Inventories of reporting stOre! decreased further during 1944 and at the end of the year wer! 5 per cent below those at the close of 1943 . The 13 stores reporting selected balance sheet items experienced a decline in the ratio of current assets to current liabilitiel from 3.7 in 1943 to 3.1 in 1944. Holdings of Government secUrities increased by 13 0 per cent and there was an improvement in other asset items, but the over-all improvement in the as.sel position was more than counterbalanced by the sharp rise i~ current liabilities. MONTHLY BUSINESS REVIEW FURNITURE STORES Despite production restriction!> and priorities which. curtail.:d the supply of furniture available for distribution, the 1944 sales of -65 reporting furniture stores were 8 per cent larger ~han those in 1943. Although the increase in the volume of busmes9 was accounted for largely by the expansion in cash sales, these transactions represented only about 20 per cent of total sales. In recent years, cash sales have been increasing in actual volu~e and in relation to total sales but the major portion of the furruture store business is still handled on an instalment basis. In 1944, 73 per cent of total sales represented instalment .business which was only slightly smaller than the 74 p~r cent 111 1943. Inventories of furniture stores, which had eVidenced a sharp downward trend during 1943 showed a net decrease of only 7 per cent between the end ot'1943 and 1944. The inventory position reflects the scarcity of good quality furniture as well as the reluctance of dealers to build up inventories of m:rchandise manufactured under wartime restrictions which mtght be difficult to dispose of when better quality merchandise becomes available. The data on balance sheet items reported by 16 firms reflect a substantial increase in current liabilities which was only partially offset by the improvement in current as~et .i~e~s. Co~se quently, the ratio of current assets to current habilltles declmed from 4.6 at the end of 1943 to 4.1 at the close of 1944. HARDWARE STORES In contrast with a slight decline in 1943, the sales of hardware firms increased by 5 per cent during 1944. Two factors which influcnced the trend of business during the year were the increased supply of many items usually handle? by ha~'dware stores and the stocking by these stores of a Wider vanety of merchandise. Inventories at the end of 1944 were 13 per cent larger than a year earlier, whereas a marked decline had occurred d~ring 1943. Cash sales again showed a marked increase an? constituted about 63 per cent of the total as compared With 56 per cent in 1943. Credit sales, consisting mostly of charge account sales declined in volume and in relation to total sales. The eleven'firms reporting selected balance sheet items were in a strong current financial position. They not only made a sharp reduction in accounts and notes payable but increased all of the current asset accounts. The ratio of cW'rent assets to current liabilities was 27.3 in 1944 as compared with 25.0 in 1943. HOUSEHOLD APPLIANCE STORES Since 1941, the production of household appliances has. been greatly curtailed by priorities and restrictions, an~ as avatlable supplies dwindled, the sales of appliance stores dechned sharp.ly. In 1944, the sales of 40 reporting firms showed a .further dech~e of 17 per cent from the relatively small volume m 1943. Wll1~e declines occurred in all types of transactions, t~e most drastiC decrease, 39 per cent, was in instalment sales, which represent:ed only about 20 per cent of total sales in 1944 as compared With 28 per cent in 1943. Cash sales rose from 36 per cent of the total in 1943 to 42 per cent in 1944. The inventories of these firms, which had decreased substantially during 1943, were 10 per cent higher at the end of 1944 than a year earlier: The five fir~s reporting selected balance sheet items greatly Improve~ their current financial positions in 1944, through a reduction of nearly 50 per cent in their current liabilities. These firms also made sharp reductions in accounts receivable and cash and b.a~k deposits while increasing their holdings of Government secuntles by 54 per cent and their stocks by 19 per cent. JEWELRY STORES Sales of jewelry firms, which had risen sharply in 194~, showed a gain of only 4 per cent in 1944. This noticeable slowmg down 7 in tLe rate of expansion may have resulted in part from a rise in the excise taxes during the early part of 1944. The principal increase in sales occurred in the volume of cash transactions which constituted about 57 per cent of total sales in 19"'A as compared with 54 per cent in 1943. While credit transactions were about equally divided between charge account and instalment sales, instalment sales were about 8 per cent smaller in 1944 than in the preceding year. Inventories at the end of 1944 were 9 per cent higher than a year earlier, whereas there has been little net change between the end of 1942 and 1943. During the past year, the sixteen firms reporting selected balance sheet items reduced their accounts receivable by 36 per cent and their cash and bank deposits by 23 per cent. These funds were utilized to reduce their accounts and notes payable by 22 per cent and to increase their holdings of Government securities by 45 per cent. At the end of each year, the ratio of current assets to current liabilities was 5.6. MEN'S CLOTHING STORES The upward trend in consumer buying of men's clothing, wh:ch has been in progress throughout the war period, continued during 1944 though at a much slower rate than in 1943. The sales of 33 reporting firms were 9 per cent larger in 1944 than those in the preceding year, with virtually all of the increase occurring in the volume of cash sales. The latter constituted nearly 61 per cent of to,t al sales in 1944 as compared with 58 per cent in 1943. Although charge account sales increased slightly, they represented a smaller percentage of total sales than in the preceding year. Instalment sales continued in negligible volume. Inventories at the end of 1944 were 5 per cent smaller than a year earlier, extending the trend that developed in 1943. The 24 firms furnishing data on selected balance sheet items reported a sharp increase in current liabilities and substantial increases in holdings of Government securities and accounts receivable. The ratio of current assets to current liabilities declined from 4.8 in 1943 to 4.2 in 1944. WOMEN'S APPAREL STORES The strong demand for merchandise distributed through wome:n's apparel stores continued during 1944 when sales of 20 rcporting stores exceeded those in the preceding year by 10 per cent. Cash sales which comprised about 50 per cent of total sales showed a larger increase than credit sales. Inventories at the close of 1944 were slightly smaller than a year earlier. The current financial position of reporting firms improved during 1944, the ratio of current assets to current liabilities at the end of the year b'eing 4.6 as compared with 4.3 a year earlier. Although current liabilities showed a noticeable increase, this expansion was more than counterbalanced by a rise in current assets.' The improvement reflected primarily increases of 51 per cent in cash and bank deposits and of 93 per cent in holdings of Government securities. SALES AND STOCKS BY KIND OF BUSINESS Number of firms showing Peroontage change ~- totnl 811les 1944 from 1943-No. of Stocks at end Kind of busincss firms Inorease Decrease Total sales· of ycart Automobile dcalers ........... 60 30 24 -3S +8 Auto tire and acccssory stores . . 86 71 If, +18 +9 Department stores ..... .... ... 41 41 None -5 +14 Furniture stores .......... .. .. 27 20 7 -7 +10 Hardware stores ..... ......... 25 19 0 +13 +5 Household uppliullce stores . ... 40 4 -17 30 +10 J ewolry stores .............. .. 25 14 11 +4 +0 Mon's clothing stores ......... 33 25 -5 8 +0 Womon's apparolstoros .. ..... 20 10 -1 +10 ·Porcontage ohanges in some cases differ from those in accompanying tnble hecause of differont number of firms. tDoUar valuo figured nt oost. MONTHLY BUSINESS REVIEW 8 BALANCE SHEET ITEMS BY KIND OF BUSINESS Percentage chnnge in nmounts reported Dec. 31,1944 ovor Dee. 31,1943 Accounts and Notes Accounts No. of Cnsh & Bank United States Payablel Receivable Stoekst Dcposits Securities firms Kind of husiness -39 -35 41 +10 +31 + 62 Automobilc dealers ................. -39 -24 +29 40 Auto tire ood necessory stores . .. . ... . . + t + 9 - 6 +75 13 +130 +16 Department storos . . ........... ... .. +3 - 5 +46 16 Furniture stores ... . .... . ....... .. .. + 62 +8 +3 - 15 11 Hardware stores ..... .. ... ..... ..... + 17 + 49 +9 +8 -61 -26 5 --49 Household oppliancc stores .... . ... .. +19 +54 -22 -28 -36 16 Jewelry stores ... ... . ... ..... ....... + 45 +6 -6 - 1 24 +17 + 70 Men's clothing storcs . ............... +13 -1 Women's apparel stores . .. .. . ..... . ,. 17 +27 +61 + 03 +4 'Rotio of current assets to current liabilities. tChange less than ono·half of one per cent. tDollnr mlue figured at cost. IIncludes trndo payablcs and notes pnyable to bauks. BALES BY TYPE OF TRANSACTION AND BY KfN D OF BUSfNESS ~-Perccntago ehnnge, 1944 ovor 194 3-~ Total Chargo fnstalNo. firms SIlles Cnsh accounts ment Kind of husiness Automobile dealers ........ ........ . 48 + 9 +20 -18 + 9 81 Aut" tire ond acccssory stores ....... . +16 +17 +21 -19 53 +15 +21 +10 - 4 Deportment storcs ..... . ... . . ...... . Furniture stores... .............. .. . 65 + 8 +22 - 5 + 6 19 +13 - 13 - 17 + 2 Hord ware stores . . . . . ........ . .. .. . . - 16 - 3 - 11 -39 39 Household opplinnce stores ......... . 17 J ewelry stores ....... . ............. . + 6 +11 + 4 - 8 30 +10 +16 + 3 - 2 Men's clothing stores ............. . . 18 +10 +14 + 7 • Women's nppnrelstores ... ......... . Total. ................. . 370 ·These firm. reported no instnlment snles. +13 +18 +11 - 2 Total .. .. .. .. .. .. . 370 63 "These firms reported no instalment sales. 61 80 40 8 10 1945 3.1 4.8 3.7 4.6 26.0 10,2 6.6 4.8 4.3 1944 5.2 6.3 3.1 4.1 27 .3 16 .2 6. 6 4 .2 4.6 t1~ PERCENTAGE CHANGE IN SALES AND ACCOUNTS RECEIVABLE BY TYPE OF Kind of business by city Automobile dealers Amnrillo ........ Dnllns .... ...... Houston .. . ..... Lubbock ....... . Ban Antonio ... . . Auto tire nnd aeces· sory stores Dalla•. _. .... .. . Houston ......... D~nrtment stores D~H:' ~.h.r~~t~: : : PERCENTAGE OF CASH AND CREDIT SALES TO TOTAL SALES No. ~- Cnsh -~Charge nects.--Instnlmeatfirms 1944 1943 1944 1943 1944 1948 Kind of business 47 47 42 38 11 15 Automobile dealers .......... . 48 63 62 41 a9 6 9 Auto tire and aecC660ry stores .. 81 W 54 0 44 2 a Dcpartment stores ....... . . . . . ~ 21 18 7 8 73 74 Furni turo stores . ..... . . .. .. . . 65 63 66 36 42 2 2 Hardware stores ...... . . , .. .. . 19 0 U M U W • Household npplinnee stores ... . ~ Jewelry .tores ..... . . ... .... .. " M 54 ~ ~ ~ ~ 61 68 38 41 1 1 Men'sclothing stores .. . ..... . 80 60 48 60 62 • • Women's apparel stores ... , .. . 18 Current ratbs· Other Liabilities --44 +6 +84 16 t 27 --45 -2 EI Paso ... ...... No, firms 3 11 7 3 4 19 19 a 6 3 3 4 4 TRANSACTION- I044 over 1043 Acct•. Receivablo' Sales Charge Charge nl Aeeounts Instalment Accounts InRtnltne Total Cash t +26 +6 +29 +24 +11 -16 -36 +80 +34 +19 +17 -26 -17 -10 +7 +6 -61 -3 -26 -26 t -1 -33 +87 +19 +17 i +17 +12 +17 +16 :/:13 18 t17 13 t14 16 +17 +28 +22 +21 +22 +16 :/:20 18 -32 -7 -16 +21 +10 -12 -2 +1 -14 20 t 10 t tl~ + 19 +64 -. .-.. t -35 Fort Worth ...... +4 t Houston .. ... ... . +6 +9 +77 San Antonio ..... +16 Furniture stores D.lIns .......... 3 +18 +17 +16 t tl1 -28 HOuRton ......... 8 19 :/:12 :/:11 13 -8 Snn Antonio ..... 6 14 60 t Men's clothing stores -2 +9 Dnllas .. ... . ... . 4 +13 +23 Houston ....... .. 6 +16 20 -17 -2 Port Arthur ..... 3 -6 Shreveport ...... 3 t 18 +10 +16 +13 tLcss thnn three stores reported. Note: Bales figures are bnsed on annunl totals; accounts receivable, on end-of-year,dAta. -t t1~ l t~ t~ l ~ MONTHLY BUSINESS REVIEW MAY 1, 1945 NATIONAL SUMMARY OF BUSINESS CONDITIONS (Complied by the Board of Governors of the Federal Reserve System) INDUSTRIAL PRODUCTION Industrial activity was maintained at a high level in March. Value of retail sales was at a recorJ for this season of the year. 1-+--~-1i-+---l--I1--l 120 '00 INDUSTRIAL PRODUCTION 80 220 r-r---t-\-lt-.+-If--I Output at factories and mines was maintained in March at the level of the preceding month, which was 236 per cent of the 1935-39 average, according to the Board's seasonally adjusted index. l-I-+-.---l 60 20 BO ~~-L-L~~~~ 1940 1 942 1944 1940 1942. 1 944 Federal Reserve indexes. Groups a.re expressed in terms of points in the total index. Monthly figures, latest shown are for March, 1945. DEPARTMEN T STORE SALES AND STOCKS 2201-1--!---+-+-+--I---1--+1 -I220 200r--r--r--r--~-~ 'BO '60 200 ,-"1--+---1 1 -1--1--1--1-""'+ ,n1l-'--l- - - I ' BO .60 '40 ,-1--+-_+_--1-_/1 " 0 \--+----1---+---1 .20 BO 1939 1940 In most nondurable goods industries output showed little change from February to March and was at about the same level as in March, 1944. Owing to increased m.ilitary purchases in recent mDnths, however, supplies available for civilians of such goods as food, textile, leather, and paper products were at the lowest level for the war period. The shortage of carbon black has continued to limit production of essential military and civilian tires and rubber products, but manufacturing facilities are being expanded for output of this critical material. In the chemical industry, production of explosives and small arms ammunition showed less increase than in recent months and output at other chemical plants was maintained at about the February level. Production of bituminous coal was at a slightly lower rate in March and declined furt her in the first week of April when wage contract negotiations in terr upted mine operations. Output of anthracite increased in March and the early part of April and crude petroleum production was maintained in record volume. T~~'--I-......j ~: -:::--'--L_L_ I9'B At iron and steel mills production continued to rise and was at about the same level as a year ago. Production of most nonferrous metals also continued to increase in March in response to military needs; zinc shipments rose to a new record level. Lumber production, however, was 12 per cent smaller in March than in the same month last year. Output of stone, clay, and glass products was maintained at the February level. In the machinery industries activity showed little change in March . Output of transportation equipment continued to decline owing to further curtailment of operations ~t shipyards. rurcraft production was maintained at the February rate. 194. 1942 1943 1944 1945 Federal Resetve indexes. Monthly figures, Jatest shown are for March, 1945. DISTRIBUTION Department store sales in March showed a f urther sharp .ncrease and the Board's seasonally adjusted index rose to 224 per cent of the \935-39 average as compared with 212 in February and 2 00 in January. In the first half of April sales continued large, after allowance for the usua l post-Easter decline. WHOLESALE PRICES '''''''' 140 '20 1-+---t--·-t;~t=:~~;;:::J.-F-·- Freight carloadings continued to rise in March and the early part of April, reflecting increased shipments of most groups of commodities except coal. In recent weeks, as a result of special efforts to mOve last year's record wheat crop to market before the 1945 harvest, grain loadings have been in much larger volume than in the same period a year ago. Shipments of ore have also been m.uch greater due to an early opening of the Lake shipping season. 1 00 COMMODITY PRICES ~~~~;R'!f-_I_-_I_-_+ - + ---180 60 40 -::::-,-_-L__..L.....,.._.L__ -.:.:;~'.-.--.-19' 9 1 940 1 1 94 1 942 1943 1944 MEMBER BANKS IN LEADING CITIES '0 1 --+--4---1---+---1---1---4'0 .Or--t---+--j---+--~ 301---i----f----+---.JJ ; .~ __~~~~~~~~p~~.O _ _..;,,1 ;;,".::'o-::;,I_,,-,-,-o.,,,lTo.'-""""'-''' o 1 939 1940 1 1 94 '942 L.._--l_ _...JO 1943 1944 m~~mandd ~eposi~ ' (adjuS'ted) exclude U. S. GovernGover~n issues 1945. . slight increases in recent weeks. BANK CREDIT 40 1945 I Bureahu of Labor Statistics' indexes. Weekly figures, atest 5 own ate for week ending April 14, 1945. 'O~~~==~ Prices of cotto n, livestock, and some other farm products were higher in the t hird week of April t han during March. W holesa le prices of industrial commodities, as a group, have continued to show and wC':fIOterba!,!,: deposits directcollection items. securIt.es include and guaranteed e nesday figures, latest shown arc April 18, Banking developments durin g the latter half of March and early April , while following the usual interdrive pattern, were considerably influenced by the large volume of Treasury receipts associated with the March 15 tax date. Adjusted demand deposits at banks in leading cities and currency in circulation both decreased in t he latter part of March but resumed their growth in April. The slackened rate of expansion in both deposits and currency was due primarily to tax payments QY businesses and individuals. Required reserves of member banks increased by around 300 million dollars during the five-week period ending April 18 . Excess reserves, which were at a temporarily high level in mid-March largely as a result of the reduction of Treasury deposits at the Reserve Banks in anticipation of tax collections, subsequently declined again to less than a billion dollars. An increase in Treasury and other deposits at Federal Reserve Banks in the latter part of March and ea rly April and resumption of the currency outflow caused a drain on reserve f unds which was offset by a further increase of nea rly 600 million dollars in R eserve Bank holdings of Government securities. At banks in 101 leading cities, Government security holdings declined during the five weeks ended April 18 by 660 million dollars. Bill holdings were reduced sharply, reflecting to a considerable C?<tent declines in the hold ings of Chicago banks associated with the Illinois tax date. Certificate holdings declined generally while bond holdings continued to rise. Loans to others than dealers for purchasing and carrying Government securities were red uced by 180 million dollars and commercial loans declined by 230 million dollars.