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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

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
OR.S
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

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
78,43-1
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
403,910
361,807
H UO 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

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
depoSits
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

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
M
arch
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.. · .. · .... · 74
10
-4
+21
+26
+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 .......

..... ..... ...

54
4
7
3
3
3

+4
-0
+6
-0
+12
+36

-6

+13
+11
+4
+18
+30
+11

CRUDE OIL PRODUC'rION-(Barrels)
March 1945

North TCWlS ................ .
West Toxas ................. .
E..t TOXllS .. ..... ......... ..
South Tex .................. .
Co..tal Tex ................. .

Totol
production
7,364,800
14,760,100
16,402,500
10,901,200
17,400,000

Dailyavg.
production
237,252
476,132
629,113
351,652
564,222

Total To ... .... .. .

66,900,500

2,158,371

New MOlico .... ............ .
Nortlt Louisiana .......... ... .

3.220,350
2,179,200

103,882
70,207

Total District. . . . . .

72,309,050

2,332,550

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

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

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

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

Total .. .. .. .. .. .. . 370
63
"These firms reported no instalment sales.

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

+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~

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

220 r-r---t-\-lt-.+-If--I

'00

INDUSTRIAL PRODUCTION

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

BO ~~-L-L~~~~
1940

1942

1944

1940

1942.

1944

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

,-"1--+---1

'60

1 -1--1--1--1-""'+

200
,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.

100

COMMODITY PRICES

~~~~;R'!f-_I_-_I_-_+ - + ---180
60

-::::-,-_-L__..L.....,.._.L__ -.:.:;~'.-.--.-19' 9

1940

194 1

1942

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,,-,-,-o.,,,lTo.'-""""'-'''
1939

1940

194 1

'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

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

deposits and collection items.
wC'e :fIOterba!,!,:
securIt.es include direct and guaranteed
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.

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

FRASER