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MONTHLY
BUSINESS
REVIEW
o f t he
Volume 31
FEDERAL
RESERVE
BANK
of
Dallas, Texas, May 1, 1946
Dallas
Number 5
AGRICULTURE IN AN EXPANDING ECONOMY
FOREWORD: The Committee for Economic Development recently published a state-
ment of its Research Committee entitled "Agriculture in an Expanding &onomy." In our
opinion, the Research Committee's statement is of such significance and value to those
interested in the agricultural future of the country as to warrant wide distribution.
Toward that end, we have availed ourselves of the opportunity to summarize some of
the more significant features of the statement in this issue of our Monthly Business Review.
Copies of the complete statement may be obtained by writing to Mr. C. Scott Fletcher,
Executive Director, Committe.e for Economic Development, 285 Madison Avenue, New
York 17, New York..
"Agriculture in an Expanding Economy" reviews some of the special problems of postwar agriculture and some of the basic causes of agricultural troubles and suggests some possible remedial
measures. It points out that it is important for non-farm business communities to be familiar with
existing farm conditions and future prospects; for the economic welfare of the entire nation is
affected by changes in farm income and purchasing power. This relationship between farm developments and the general welfare is particularly marked in areas such as the Southwest, where so large
a share of the total income is derived directly from agriculture. Likewise, the welfare of the agricultural sector of the economy is vitally affected by developments in the non-agricultural sector. In the
words of the Committee:
General policies designed to achieve reasonable stability in the general price level and
to keep the industrial-urban economy going at a high level of production are of first-rank
importance to farmers.
Agriculture can reach its highest state of well-being only in an environment of high
level employment, unrestricted and abundant production, and high purchasing power. These
are important to everyone, but they are particularly necessary to farmers. No other factor
can possibly mean as much to the welfare of the farmers as good consumer markets. Moreover, high-level industrial production provides a large supply of goods to trade for the products of the farm, thus improving the terms of exchange for the farmer.
During the war period, industrial activity and consumer purchasing power rose to new record
levels, and a great flow of goods abroad occurred under lend-lease. As a result, the demand for agricultural products rose sharply. With total agricultural production expanding more than one-fourth
and with prices received by farmers doubling during this period, farm incomes reached new record
levels. Farm land values climbed at a very rapid rate, so that on March 1, 1945, farm real estate prices
for the nation as a whole were about 52 per cent above their 1935-39 averages. In this connection a
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
recent report of the United States Department of Agriculture estimated that farm land prices in
the five states of the Southwest lying entirely or partly in the Eleventh Federal Reserve District
advanced from 52 to 80 per cent between March 1940 and March 1946.
The Committee recognizes that farmers are in the best financial position they have occupied in
many years. Their liquid assets have increased $12 billion since 1939, and their indebtedness has been
considerably reduced. The equities of farm operators have increased by about $38 billion since 1940
to a total net worth of $82 billion in 1945, a large part of this increase being due to the rise in land
prices that occurred during the period. The intensive farming operations of the war years, however,
have reduced the fertility of the soil, and to that extent, the land is actually less productive and consequently of less real value than current high prices suggest.
In spite of the improved position of agriculture, however, the farm population has declined
numerically-falling about 16 per cent-while the total population of the United States has increased
more than 5 per cent. The Committee's report points out that while this outward movement from
farms has partly corrected the peacetime oversupply of labor on farms, it does not guarantee that
the problem of surplus labor will not again present itself in the postwar period. Instead:
... The extent to which surplus workers return to farms after the war is one of the
critical questions that will affect farm prosperity. The return of some will be required to
replace farmers who want to retire because of old age, women drawn into the farm labor
force because of the wartime pinch in particular areas, and very young boys and girls. A further influx of labor into farming will again depress per capita earnings and continue much
of the economic and social maladjustment that has attended the "farm problem" the past
two decades; it is likely also to continue attempts at political solutions to the problems of
this important sector of our economy.
Past experience, according to the Committee, has shown that land and capital, once committed
to farm production, tend to remain in production despite changes in farm prices. This tendency is
particularly marked if there is any great pressure of workers returning to farms. If the wartime
volume of production should be maintained without the continuance of the war-created domestic
and foreign demand, farm commodity prices are likely to fall sharply.
Although the drop in farm prices and income may not be as precipitous or as great as
the drop which followed W orId War I, and ~ome measures may be developed to offset the
forces leading to the decline, it nevertheless is likely to cause widespread and serious difficulties in agriculture.
Conditions will be made worse if the current trend continues of buying farms on credit
and at high prices and if we have unwise, even though well-meant, moves to place large
numbers of industrial war workers and returning veterans on the land, with agricultural production as their only source of income.
While the maintenance of a high level of industrial activity and of non-agricultural employment at good wages is looked upon by the Committee as the main hope for general farm prosperity
in the postwar period, some segments of agriculture will be confronted by special problems requiring intelligent treatment. These include the problems confronting wheat and cotton producers, the
problem of weather hazards, and the problem of soil exhaustion.
The Research Committee points out that the existing volume of wheat production is in excess
of the amount that can be consumed, under normal conditions, as bread grain in the United States
or in such foreign markets as might be available. Instead of reducing production, however, they suggest that a better solution to the wheat problem might be an expansion of the uses of wheat. For
example, if the price of wheat were such as to make it competitive with grains usd for feedstuff,
a larger volume of it could be utilized for feeding livestock. In the absence of government price support programs, wheat produced in excess of bread and industrial requirements might reach a relationship with corn prices that would encourage both current feeding and a feed storage program which,
in the words of the Committee, "lend more stability and profitability to the livestock sector of agriculture."
MONTHLY BUSINESS REVIEW
66
The problem confronting cotton producers is even more urgent and more complex. The demand
created by the war has not moved the great stocks of surplus cotton, particularly the lower grade.
Moreover, in the years ahead, American cotton growers will be confronted with increasing competition from foreign growths and synthetic fibers. The Research Committee emphasizes the necessity
of maintaining cotton prices at a level that will command a large domestic market and compete successfully for foreign business if we are to find outlets for the cotton produced at near the present
volume. Mechanization will "go far toward enabling growers to sell at the lower prices demanded
for world markets" as production costs will fall as mechanization progresses. The spread of mechanization will also bring higher returns per worker, but at the same time, will further aggravate the
excess labor problem. The Committee, recognizing that mechanization is likely to bring revolutionary
changes throughout the South, states, "The remaking of the economy of the cotton South is undoubtedly the most important and the most difficult special problem in agriculture confronting the United
States."
A third special problem in agriculture is the economic uncertainty due to erratic weather. The
Research Committee estimated that about 40 per cent of the nation's crop land is affected; particularly in the Plains states. It is suggested that a program of crop insurance, the cost of which would
be borne by the individual farm, should be considered to deal with this problem.
A system of crop insurance for areas of high climatic risk is recommended by many
persons well acquainted with the problems of these areas. The main purpose of crop insurance is to minimize the effect of year-to-year fluctuation in weather upon the individual
farmer's income. If the cost of insurance were to be borne by the general public, it would
result in the long run in rising land values and rents with little real gain to the individual
farm family. The cost should be borne by the parcel of land concerned, and reflected in its
value.
The fourth special problem cited in this study-the exhaustion of the soil-is one that affects
farmers throughout the country in one way or another. Regarding this problem and its solution, the
publication states:
Most of the land of the nation slopes enough to erode, if the soil is improperly handled.
Terraces or ditches are usually necessary to remove excess water safely from sloping land. But
the terraces must have protected outlets or the water will cut into the soil and aggravate the
erosion. Even after the water has been moved safely from a terraced field, there must be a
place to put it. To expect the average farmer to deal with this kind of problem, and many
others of greater or lesser difficulty, is to expect him to have some degree of proficiency in
engineering. Most farmers do not have this proficiency. Most of them are not engineers, or
agronomists, or hydrologists, or foresters. They are farmers, and when it comes to dealing
with the erosion problems on their lands they almost invariably require technical help and
advice if they are to arrive at the correct solution .
. . . Farmers must do the bulk of the work of conserving and restoring the soil, but the
government will have to provide them with technical assistance if the work is to accomplish
the desired results and have an assurance of permanence.
It should be noted that the solution of this problem of soil erosion and exhaustion will also aid
in solving the problem of variations in crop yields due to weather hazards and the readjustment of
marginal areas.
Going on beyond the special problems of postwar agriculture discussed above, the Research
Committee has considered basic causes of agricultural troubles in the United States. Among these
causes they have included the excessive farm labor supply and the increasing output per worker; the
slackening in the rate of increase in demand for farm products; and the instability of farm incomes
resulting from fluctuations in the general price level, changes in the volume of demand, and uncertainty in crop yields.
56
MONTHLY BUSINESS REVIEW
Among these basic causes of agricultural troubles, the Committee characterizes the excess of
human resources devoted to agricultural production as the first, and probably the most important,
single factor of the "farm problem." They point out that excess labor in agriculture does not evidence itself in mass unemployment but rather in overcrowded, underproductive, and low-paid
employment. While most farmers stay at work, they do not have an opportunity to utilize their time
completely at a remunerative job .
. . . The surplus number of workers on farms reflects, first, the slowing down of the
non-agricultural industries in the latter inter-war years. Job opportunities off the farm being
limited, the normal flow of labor from farm to town dwindled. Meanwhile, the large natural
increase of the farm population, greater in rate than that of the urban population, continued
to add to the excess supply of labor in agriculture.
A second important element making for an excess of workers on farms is the continuous
improvement in output capacity of farm workers. American agriculture is in the midst of
a technical revolution, the counterpart of the technological advance in industry. These
changes improve labor efficiency and the output per worker. The labor-saving effect of this
revolution has already evidenced itself, and the forward surge in better farm equipment and
techniques is still in its early stages.
In many sections of the United States, such as the wheat growing areas, mechanization of farming is an accomplished fact, but other areas, such as the cotton South, are only now approaching mechanized production. As mechanization of farming is extended and existing equipment is improved,
the demand for farm labor is expected to decline still further.
Several approaches to the problem of providing additional job opportunities for farm people
and thereby relieving the surplus of agricultural workers are examined in the Committee's report .
. . . A National Labor Outlook, comparable to the Agricultural Outlook developed by
the United States Department of Agriculture and the State Agricultural Colleges, has been
recommended. Farm workers are especially isolated. They lack knowledge about the types of
jobs, working conditions, and earnings that may be available to them elsewhere. Existing
employment agencies might be asked to provide specialized placement service to help equalIze the nation's labor supply.
Improvements could be made in the educational process that now prevails in rural areas,
as a means to improve labor mobility. The vocational training that is available is mainly
aimed to train farm youth to continue as farmers. It should be broadened to develop skills
and means of earning a livelihood in non-agricultural pursuits for the boys and girls not
needed in farm production.
It should not be necessary, in order to bring workers and non-agricultural jobs together,
for the workers to do all of the moving. Greater mobility of capital in a decentralizing movement of industry into areas of labor surplus is needed also .... there should be some definite
and organized effort to develop industrial and commercial activity in the very areas in which
surplus population is located. The possibilities should not be overlooked that new processing
industries using raw material grown in such areas can be located locally.
Attention needs to be given to other barriers that obstruct the migration of farm people.
The entry of workers into many fields is blocked by restrictions, some imposed by organized
labor groups .... Social controls inherent in customs and traditions often playa decisive part
in checking the movement of people from farms. To ignore these various factors after the
war will be to aggravate one of agriculture's major problems, the over-supply and mal-distribution of farm labor.
The second basic cause of agriculture's troubles analyzed by the Committee--a slackening rate
of increase in demand for farm products-is the result of a number of conditions. Domestic demand,
MONTHLY BUSINESS REVIEW
57
the Committee finds, has slackened considerably because of the declining rate of increase in the
nation's population. True, the rate of population increase has risen in the past few years as it did in
the World War I period, but such a rise cannot be looked upon as permanent. A continuously increasing population would greatly simplify the problem of finding outlets for the ever expanding volume
of agricultural production; but as we cannot for long look forward to net population gains of any
magnitude, other methods must be found to expand the domestic demand for farm products.
A continuous high level of industrial activity and employment would go far in this direction
by increasing the demand for such farm products as are used in industry and by providing incomes
for industrial workers so that they might make effective their demands for farm products. However,
this latter possibility has definite limitations.
Food demand does not, in fact, keep pace with rises in family incomes; except for the
very low income groups, people spend proportionately less on food as their earnings increase.
It should be noted, however, that "proportionately less" still permits some increase in food
demand as earnings improve, including significant shifts in choice of foods. Low incomes
mean a greater consumption of cheaper foods such as grain products and potatoes; with
higher incomes there is increased consumption of meat, dairy, and poultry products, fruits
and vegetables.
Another factor tending to diminish demand for farm products is the decline in agricultural
exports. Although a relatively small percentage of the total volume of agricultural production is
exported, nevertheless, exports play a strategic role in the marketing of the products of certain
specialized farming areas such as those sections where tobacco, cotton, and wheat are grown. These
specialized agricultural areas are suited and developed to produce for export, but if our domestic
prices for farm commodities continue above world levels, export subsidies will be required to move
any great volume of these commodities; and nations that are primarily raw material producers can
be expected to retaliate in effective ways against such a policy. International commodity agreements
may, for a time, help us move commodities such as wheat and cotton abroad, but in the long run,
American farmers cannot export a large volume of goods if artificially high domestic prices are maintained. "For the long haul," says the Committee, "by the elimination of trade barriers and reductions
in tariffs, the over-all volume of our foreign trade-particularly our imports-should increase, thus
enlarging export opportunities for commodities in which we have comparative production advantages."
A third basic cause of agricultural troubles, in the judgment of the Committee, is the instability
of farm prices and incomes. The costs of production in agriculture are, for the most part, fixed costs
and do not vary materially as general business conditions change. Yet the income from which farmers must meet these fixed costs is highly variable and unstable. In an effort to assure some stability in
real income, farmers and farm leaders fought for many years to get the concept of parity of purchasing power established in the law. Present laws define "parity" for most farm products as the
price which will give a commodity the same exchange value or purchasing power in the present market as it possessed in the base period of 1910-14. An appraisal of the working of the "parity" principle
to date is summarized in the following paragraphs from the Research Committee's report:
The five years 1910-14 were designated as the "parity" base period in the bitterly contested farm relief bills of the 'twenties. The Agricultural Adjustment Act of 1933 made
parity prices based on the 1910-14 period the standard in setting price goals for agricultural
commodities. In that five-year period, farm product prices relative to industry prices had
been comparatively satisfactory. As a yardstick in remedying the disastrous collapse of the
farm product price structure in the 1920's, the 1910-14 standard had merit. It has much less
meaning for agriculture and the economy as a whole in 1946.
Parity as an idea appeals to the public· as fair and just. But used as a legal instrument
to fix farm product prices, parity based on a relationship that existed 30 years ago has become
a liability in American agricultural policy. Making it effective, by means of loans and pur-
68
MONTHLY BUSINESS REVIEW
chase programs, continues out-grown price relationships and tends to perpetuate past production patterns; resists production changes that are in farmers' long-run interests and builds
up surpluses toward an eventual crisis and collapse; it tends to drive a wedge between internal
and external prices of farm products that eO export trade, thus opening the way for twonter
price systems, export dumping, and other measures hostile to a liberal foreign trade policy.
It is the Committee's opinion that while parity does not assure stability of net farm income and
a redefinition of parity appears to be overdue, farmers will probably resist any revisions unless some
workable plan can be proposed as a substitute. "The needed standard of measurement cannot be
expressed in terms of commodity relationships. It should be a policy with two objectives: to create
conditions favorable to the enjoyment of at least a fair minimum standard of realized income by farm
families, and to guide farm production into the pattern that makes most efficient use of agricultural
resources. "
If these objectives are to be realized, the Committee suggests that steps should be taken to stabilize
the incomes of farm families by other methods than "parity" prices. Wide shifts in the general price
level are one cause of instability of income against which the farm population needs protection.
Most farmers carry a comparatively large capital debt, and a fall in the general price level makes it
necessary for them to meet their credit obligations with products that are of less value than they
were when the debt was contracted. This condition gives rise to other problems, for as the farmer
attempts to adjust himself to these new conditions, he will try to expand his production, often depressing farm prices still more and depleting his soil. In considering this problem, the Research Committee
remarks that:
Many agencies of government are concerned directly or indirectly with fiscal-monetary
functions, which influence the general price level. The coordinating of these functions in a
program designed to lessen the violent fluctuations of the price level should be made an objective in government policy. Involved are measures pertaining to the issue and retirement of
money, to the raising and also the spending of money by government, taxation, public borrowing and repayments, and government loans to individuals and corporations.
Changes in industrial employment and output also cause changes in national income and in the
demand for farm products, with consquent disturbing effects on farm incomes. Moreover, farm
prices and incomes rise more rapidly and higher than non-farm prices and incomes when business
improves and fall more sharply and further when business declines. Therefore, in the opinion of the
Committee, the stabilization of the industrial urban economy at a high level of production is of the
greatest importance to the farmer, for the attainment of this goal would automatically minimize the
instability of farm incomes arising from business fluctuations. However, until this can be accomplished, alternative methods should be sought to offset the effects of such fluctuations upon farm
prices and farmers' incomes.
Many proposals have been offered from time to time to deal with this problem of fluctuating
farm prices, including the limitation of farm output when unemployment spreads and demand falls,
and a system of stabilized prices. However, as the Research Committee's report emphasizes, the first
proposal, to limit production, would make food and other farm products more expensive in times of
depression and would be of doubtful benefit to the farmer. Moreover, as agriculture is composed of
multitudinous small units and because crop and livestock production is of such a nature that plans
must be made far in advance, it would be extremely difficult, if not impossible, to control the shortrun supply of agricultural goods.
The proposal to establish a system of fixed prIces also has many practical difficulties, as suggested by the Committee.
When we try ... fixing prices by law at levels as high as when demand was at the peak,
we encounter the "surplus" problem-what to do with the excess above what the market will
take at such floor prices. The government buys it up, either directly or through loans, and
MONTHLY BUSINESS REVIEW
69
then starts worrying about how to hold it or dump it. Experience confronts us with the fact
that merely setting a price or fixing a parity formula by law does not solve farmers' price
problems.
Agricultural price policy should be such as to leave prices free to carry most of the load
of guiding agricultural production, as well as to gain the largest possible volume of consumption of farm products. Unless prices are free to reflect the volume of demand that can
be obtained, farmers will inevitably over-produce some products and under-produce others.
The Committee discusses the pros and cons of the proposal that the Government, under certain
conditions, make direct payments to farmers which might allow sufficient flexibility in prices and
at the same time lend a certain degree of stability to farm incomes. These payments would be in an
amount equal to the difference between a guaranteed price and the price obtainable in the market.
Advocates of this plan argue that the country as a whole would be better off if prices were allowed
sufficient flexibility to move all farm products into consumption and thus avoid building up unmanageable surpluses in Government hands. Payments made in this manner would stabilize the farmers'
income without disturbing full volume production and trade. Opponents of the plan argue that such
payments constitute a "cheap food" device and would make the farmers dependent on subsidy props
that might be withdrawn at any time.
The Research Committee suggests, however, that the use made of direct payments in meeting
future agricultural problems should have careful objective study. The exact character of such payments would vary with the purpose for which they were made. The Research Committee report discusses three types of payments: First, transition payments that might be made for some time to aid
in discharging the Government's obligations to support farm prices for two years after the end of
the war. Such payments would allow the Government to meet its commitments with minimum
adverse effects on agricultural production, trade, and consumption. Second, payments to offset the
decline in demand for farm products during periods of acute industrial depression. A supporting
argument for payments of this sort is that they would be made only in the trough of the business
cycle and would be counter-cyclical in their general effect. Third, adjustment payments used to aid
particular depressed segments of the agricultural economy where a marked transition in production
and employment is necessary. Since such adjustments would be spread over long periods, payments
should be geared to the adjustment deemed necessary for bringing about better economic balance in
the given area.
In the foregoing summary of the special problems and basic difficulties confronting agriculture
in the postwar era, as viewed by the Research Committee of the Committee for Economic Development, the complexity of the farm situation has been noted, and some of the more interesting proposals for solving or ameliorating the various troublesome conditions have been briefly examined. The
report of the Committee emphasizes the importance to all sectors of our national economy of a wellbalanced and prosperous agriculture, and in conclusion states:
The farm is the seedbed of our population increase. It is the most important source of
new blood for the cities whose population does not otherwise sustain itself. Standards of
nutrition, health, and education in rural areas, therefore, are of prime national concern. To
see that the farmers have equal facilities and opportunities in these respects is not merely fair
play; it is important to national self-preservation. The whole economy shares the responsibility to see that over-populated rural areas are able to make better provision for educating
and training their youth and for health and nutrition. It is imp·ortant to the nation, too, that
farm conditions be attractive enough to hold on the farms a sufficient number of well-qualified persons to make for an improved agricultural economy.
MONTHLY BUSINESS REVIEW
60
Review of Business. Industrial, Agricultural and Financial Conditions
in the sales of these stores over the same period of last year
amounted to 1g per cent. The March increase of 14 per cent over
Although many stock shelves and clothing racks are still the same month last year was much less than the February gain
scantily supplied with merchandise, a slowly rising and unevenly of 25 per cent over February 1945. This relatively small gain in
apportioned flow of civilian goods is coming through the supply March of this year over the corresponding month a year ago is,
lines and being eagerly bought up from department and furni- however, a reflection of the fact that in 1945 pre-Easter buying
ture stores and other retail establishments by consumers more reached its peak in the latter half of March. This year the impaCt
abundantly endowed with purchasing power than at any pre- of the annual quest for Easter merchandise will not be fully revious period in the nation's history. This development is evi- vealed until sales figures for April are available. Preliminary
deneed in the Eleventh Federal Reserve District by moderate reports for the first two weeks of the month, however, indicate
gains in the inventories and much more substantial gains in the that sales at department stores in April ran some 5 per cent
sales of reporting department and furniture stores during March, ahead of the same month last year. Department store stocks at
as compared with Pebruary this year and with March 1945. the end of March were 3 per cent above the previous month and
Throughout the first three months of 1946 reporting department 6 per cent larger than at the end of March 1945.
stores in the district registered a cumulative gain in sales of 18
March furniture sales of 52 reporting stores in the district
per cent over the high level reached in the first quarter of 1945.
Pre-Easter shopping in these stores during the first three weeks showed a gain of 12 per cent over February and of 38 per cent
in April was in unusually large volwne. Farm work and commer- over March a year ago. In 46 stores which report cash and credit
cial truck gardening made good progress throughout the district sales separately, total sales were divided on a ratio of 24 per cent
in March and April due to a predominance of mild, open weather. to 76 per cent between the two types of t.ransaction. Cash sales
Moisture conditions were generally good as a result of rains in the were up 9 per cent over the previous month and 50 per cent over
latter half of April, except in the western and southwestern March of last year. Credit sales were 14 per cent higher than in
areas, where ranges and range feeds were in somewhat below February and 32 per cent higher than in March 1945. End-ofaverage condition as a result of insufficient winter and spring the-month stocks had increased at a slower rate than sales, based
precipitation. The Texas wheat crop is expected to yield a harvest on reports of 25 stores, which showed inventories 3 per cent
of nearly 60,000,000 bushels--the third largest in the history of higher in March than in the preceding month and 11 per cent
the State. Receipts of cattle and calves at the principal Texas higher than in the corresponding month of last year.
DISTRICT SUMMARY
°
livestoCk markets continue light, as compared with a year ago,
whereas the movement of sheep has shown an upward trend'.
Federally inspected packing houses in the district, as elsewhere,
report forced curtailment of operations due to the sharp decline
in supply of beef cattle. Stocks of corn, wheat, and oats on Texas
farms at the beginning of April reached the lowest level for the
same date in several years and were significantly below the 19351944 averages. Prices of most farm commodities continue to
rise. The decline in district production of crude oil resulting
from a March cut in Texas allowables was reversed during April
by the Railroad Commission's orders raising the daily allowable
by nearly 200,000 barrels. Moreover, May allowables have been
increased to the level that had obtained in February. In terms of
daily average well completions, drilling activity in this district
during the first quarter of 1946 was at the highest level since
1941. Both employment and unemployment in Texas industrial
centers increased numerically during March, the rate of return of
ex-servicemen to the civilian labor force accounting for the latter development. An expansion demand for labor, particularly in
the construction industry, reported by the State Director of the
United States Employment Service, is expected presently to
bring about a further increase of 3 per cent in employment of
non-agricultural workers. Adjustment of the construction industry to the provisions of recent orders of the Civilian Production Administration and the National Housing Agency giving
top priority in allocation of building materials to the housing
program is reflected in a sharp rise in residential contract awards,
whether considered dollar-wise or in relation to the volume of
awards for industrial and commercial building. Stubbornly persisting shortages in the supply of many vital building materials
and in skilled craftsmen are the chief deterrents to rapid expansion in construction activity.
BUSINESS
During March, sales of reporting department stores in thi~
district increased 15 per cent over the preceding month and 14
per cent over March 1945. Cash sales constituted 47 per cent of
the total. For the first quarter of this year, the cumulative gain
A current husiness development somewhat at variance with
trends during the war is a noticeable rise in the number of applications for charge-account and instalment credit, which has been
reported by many retail films. Not only returning veterans but
former war-plant workers and other wage earners are apparently
WHOLESALE AND RETAIL TRADE STATISTICS
Number
Retail trade:
Departmen\ stores:
Total 11 tb DisL.... .
~Ir:. C.hrirti: ::::
Forl Worth ., ... , ..
Houston .......... .
Ban Antonio . ......
SbrevellOrl, La., , , .
Ot.her cities . . ......
of
reportioi
1innI
47
4
7
i
7
6
3
17
PercentAge change in
Net sales
Stocks I
March 1946 from
Jan. 1 to
Mnrch 1946 from
March
February Mrn.31,11)46 Mtlrch February
1945
1946
from 1945
lOiS
1046
+14
+16
+18
+6
+3
+6
+23
+25
+8
+7
+1 9
+11
+24
+7
:j:lg
+3
+ 10
+14
+8
+21
+ 17
+17
+12
+ 11
-18
+ 18
+ 16
+24
+6
+12
+ 14
+20
:":"j
+;0
+ 11
+6
+20
Retail furniture:
Totall1lb DiaL . ..
Dallas .... . .......
Houston .. .... ... . .
Port Arthur . ... .. .
San Antonio . .. . ...
52
4
8
4
4
+38
+46
+56
+37
+23
+12
+14
+18
+2
+17
+11
+7
+3
-4
-19
+';
Wholesale trade:Machinery eqp't ct
IUppiiea .. ..... ..
3
+0
+38
-7
4
+20
-2
+2;
+'8
5
+18
+22
- 1
Groceries .. . .. . ....
23
-2
+ 16
+22
+18
Hardware . ....... .
9
+26
+26
+13
+ 5
+8
Tobacco & products
3
+39
+99
-COmpiled by United Statos Bureau or CnsU5 (wholesale trade 6gures preliminary).
:Stocks at end of month.
Automotive suppliee
Drup ........... ..
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Daily average ea1~(1035-1939-100)
Unadjusted ..
Adjusl.OO
M"",h
Feh.
Jail.
Feb.
Jan.
March M...h
10i6
316
315
297
District . .
Dallae . . .
Houston .... .
1946
200
326
275
1946
248
257
230
1945
268r
267
255
1940
316
315
309
M"",b
104.6
1946
1945
339
339
312
306
313
294
268r
207
265
SIo,ks-(l936-1939 -100)
- - - - Uaadjustod°'--------.Adjus\ed---District. ....
March
1946
ISB
· Unadjusted
r-Revised,
Feb.
1946
Jan.
IIM6
169
161
ror &eaaOnal VarintWD.
March
104,\
166
March
1940
)95
Feb.
1946
190
Jan.
IM6
179
March
1945
175
MONTHLY BUSINESS REVIEW
seeking to establish their credit so as to be in position to buy
consumer goods, both soft and durable, in greater variety as soon
as they become availahle. Credit managers report almost no delinquencies at present in collections on outstanding charge and
instahnent accounts.
Jobbers and retailers, as well as producers and consumers, are
affected by two recent orders of the Office of Price Administration suspending price ceilings on a long list of heavy industrial
machinery and equipment and on several hundred consumer
items rated by the agency as "of only minor impcrtance in living
costs or in the cost of doing business." The order covering industrial goods was described as the most extensive suspension thus
far authorized. The articles covered by the second order account
for about 2.5 per cent of the total annual production of consumer goods and include significant items of personal, household, or professional use. The suspension orders reserve the authority of the OPA to reinstate controls in case of unwarranted
rises in prices. In a move intended to release for delivery to retailers thousands of women's garments hanging unfinished on
manufacturers' racks because of lack of linings, the Civilian Production Administration, on April 18, ordered rayon fabric producers and (mishers to set aside 15 million yards of lining fabrics
quarterly to be used exclusively for women's and girls' suits,
coats, and jackets.
That there is still a great reservoir of purchasing power putting inflationary pressure on prices of all commodities in short
supply is evident from (l) the accumulation at the end of 1945
of more than $140 billion of liquid assets in the hands of individuals; (2) the increase in toral civilian employment, exclusive
of workers on farms, to 44,700,000 in February, as compared
with 42,450,000 in September; and (3) current private wage
and salary payments approximating the V-J Day level of $82
billion annually and exceeding by $7 billion the amount of such
payments in September 1945. Out of current income, wage
and salary earners are now reported to be spending more and
saving less than during the war years.
With deferred demand for civilian consumer and producer
goods more insistent and purchasing power more abundant and
more widely distributed than ever before in our history, the
potential volume of wholesale and retail trade in this district, as
in the nation, is It present limited largely by the rate and variety
of civilian production. On this point available figures pertaining
to the national output may be tlsed to appraise the current and
prospective trade devel~pments in the district as well as in the
country at large. During the first quarter of 1946, the production of civilian goods and services for the nation as a whole rose
to an annual rate of more than $150 billion-the highest the
nation has ever known-and constituted 85 per cent of the total
national output, according to the April report of the Director of
War Mobilization and Reconversion. Thus, even after adjustments have been made in the money value of the output to offset
the effect of price increases for some commodities and services,
the volume of civilian goods, though still far below demand in
many lines, is rising. Work stoppages during the winter in the
basic steel, electrical, and automotive industries not only retarded the tempo of total production but also made the rate of
advance uneven in different industries.
Even so, the Civilian Production Administration reports
that output of cotton fabrics has risen steadily since mid-December, and woolen and rayon fabrics arc at present being produced for civilian uses in greater quantities than at any previous
period in the nation's history. Consumer durable goods which are
currently above or approaching prewar rates of production include automobile tires, washing machines, radios, vacuum cleaners, electric irons, and bicycles. With steel mills now operating
at a fairly high percentage of capacity and with other basic in-
61
dustries recovering from the paralyzing effects of industrial
disputes, the output of refrigerators, sewing machines, electric
ranges, automobiles, trucks, and farm machinery is expected to
increase rapidly unless the current strike of soft coal miners
forces new stoppages in steel mills, fabricating plants, and transport facilities.
It should be remembered, however, that the output of such
industries as iron, steel, heavy machinery, power, and crude oil,
which supply basic materials for producers rather than consumer
goods, strongly influence the index of total civilian production
and private spending. This fact explains in part why shortages
of many consumer goods continue at a time when total civilian
production is at an all-time high. Other factors to be reckoned
with in accounting for the scarcity of many things the public
is eager to buy are (1) the time required to refill the wardepleted supply lines from producer to consumer, (2) alleged
withholding of some commodities from the market by manufacturers pending individual or industry-wide price increases,
or by distributors awaiting notice of the prices established for
certain articles, and (3) the unprecedented volume of deferred
consumer demand which absorbs the current unevenly rising
output of goods at a rate so rapid as to prevent any substantial
replenishment of inventories.
AGRICULTURE
Mild, open weather of March and most of April allowed field
work throughout this district to make good progress, and April
rains improved moisture conditions in most of the district. Some
localities in the western part, however, are still in need of rain.
A report of prospective plantings indicates a moderate decrease
of from 5 to 10 per cent in acreage of feed crops and a slightly
increased food crop acreage. Most ranges were below average
condition on April 1. Sheep and cattle were generally in average
or slightly below average condition. Serious feed shortages continued, and grain stocks on farms were at their lowest level in
several years.
The April 1 general crop report of the United States Department of Agriculture forecasts a 1946 wheat yield of 59,940,000
bushels for Texas from the largest acreage ever seeded in the
State. While falling below the 71,558,000 bushels produced in
1944, the 1946 crop is expected to be the third largest ever harvested in Texas. The prospective yield of 10.0 bushels per seeded
acre for this year is 1.9 bushels above the 1945 figure and 1.8
bushels above the 10-year (1935-1944) average. The size of the
final harvest, however, will depend largely upon weather conditions in April and May. Subsoil moisture was deficient on April
I in the important northwestern wheat area, and good general
rains in that section were needed to prevent further losses in
acreage and yield. In other wheat areas, due to generally adequate rainfall, the crop has made good progress. Damage has not
been excessive from the infestation of green bugs which are
reported in many areas.
Most of the corn acreage in the north central area of Texas
was seeded .by April 1 under generally favorable conditions, and
in the southern areas the crop was up to a stand. A substantial
portion of the corn crop in northern Louisiana was still unplanted
on April 1. In the early planting areas of Texas much of the
sorghum acreage was up to a stand, and in the more northern
areas progress was .being made in the preparation of seed beds
for planting. Planting of cotton was virtually completed in
southern and south central Texas and was reported under way
in the north central counties at the first of April.
Commercial truck crops made satisfactory progress in most
Texas districts during March. High temperatures, particularly
62
MONTHLY BUSINESS REVIEW
during the latter part of the month, were very favorable for early
planted spring vegetables and hastened the maturity of the south
Texas onion crop. Most spring truck crops were making about
usual growth at the beginning of April, but it was expected that
tomatoes would be a little later than last year. Harvest of the
Lower Valley potato crop and the south Texas onion crop Was
under wayan April l. Conditions were favorable for planting
operations in the mid-season and late districts, and tender varieties of vegetables were being planted in some extreme northeastern counties. The 1946 indicated production for Texas of snap
beans, cucumbers, onions, Irish potatoes, and tomatoes shows an
increase over the production in 1945, with late spring onions
and early Irish potatoes from the Lower Valley showing the
greatest increase.
Ranges and range feeds in Texas improved seasonally during
March, but the condition for the State as a whole on April 1 was
slightly below average. The southern, southwestern, western,
and northwestern areas because of insuflicient winter rains have
had poor feed growth. Oklahoma ranges improved in March and
were reported to be in better than average condition on April 1.
Grain fields furnished good pasture until livestock were remo, ed
v
in the latter part of March. In eastern O klahoma, where soil
moisture was adequate and warm weather prevailed, the growth
of new grasses was 5 to 15 days earlier than average, and the need
for supplemental feeding was reduced. Dry conditions in New
Mexico, except in the higher areas and in the north, have retarded the starting of new grass, and old range feed was reported
to be short on April!. Similar conditions have resulted in short
range feed in southern Arizona. Oklahoma, New Mexico, and
Arizona reported shortages of hay and other feedstuffs. Texas,
however, reported adequate hay to meet present needs but short
supplies of grains and protein concentrates.
Cattle were reported to be at near average condition on April
1 in Oklahoma and Texas, showing some improvement over last
month. In New Mexico and Arizona, however, cattle were below
average and had declined in condition from a month earlier.
Slight gains were registered by sheep in Texas and Arizona, but
in both these states and in New Mexico they were in below
average condition on April 1. Mild t emperatures were favorable
for early lambs, but improved ranges will be needed to put a large
volume of them in slaughter condition by July 1. Some thousands of Arizona early spring lambs were marketed in March,
most of them weighing upwards of 90 pounds, but it was reported that the feed situation might force the sale of trulny
others in April, regardless 0.£ weight.
Total receipts of cattle and calves at Forth Woreh and San
Antonio markets in March fell far below receipts for the same
month last year but showed some increase over the shorter marketing month of February 1946. According to press reports, selling activity of Panhandle wheat fed cattle reached a peak in
Amarillo during the first week of April, and is expected to decline sharply after the end of the month to a seasonal summer
slump. Hogs moved into Fort Worth and San Antonio markets
in greater volume during March than during the same month last
year but fell about 26 per cent below the previous month. The
movement of sheep was about 10 per cent above March of last
year and about 24 per cent above the February movement.
Packers in the Southwest and elsewhere have been forced to
eurtail operations due to sharply reduced supplies of cattle. The
United States Department of Agriculture estimated that beef
and veal slaughtered under Federal inspection in March 'Were
about 23 per cent below the March 1945 slaughter, while lamb
and mutton increased about 17 per cent and pork about 3
per cent.
Texas farm stocks of grain on April 1 were at the lowest level
for that date in several years. Corn stocks amounted to
12,803,000 bushels, compared with 17,123,000 bushels a year
ago and the 10-year average of 20,764,000 bushels. Wheat stocks
were estimated at only 1,044,000 bushels, compared with
5,725,000 bushels a year ago and the 10-year average of 2,313,000 bushels. The April 1 supply of 6,366,000 bushels of oats held
on farms was below farm stocks of 7,720,000 bushels at the same
time last year and the 10-year average of 8,170,000 bushels.
The March 15 local price report of the United States Department of Agriculture showed that prices received by farmers in
Texas for most crop and livestock items were continuing t o
rise. Grain sorghums, potatoes, beef cattle, veal calves, and citrus
fruits were significantly higher on that date than a month earlier.
Prices of turkeys and milk declined slightly, and eggs continued
the seasonal decline. Prices of other items sold by farmers were
unchanged or only slightly higher.
CASH FARM INCOME
(Thousands of dollars)
~December
1
1rizona .. . .. . . .... •• ..••
Louisiana .. . . . . .... •• ..•.
New Mexico ... . .........
Oklahoma .. ....•....... .
Texas.,. , ..... ,. , ..... ,.
1945
Receipts fromCrops Livestock·
13.415
5.065
7.757
22.455
3.461
5.066
15,714
16.009
50,182
41.940
Total ..... .. ..•• 105.227
75.837
Dec .
1945
18,480
30.212
8.527
31,723
92.122
181.0114
Total receipUi
Dec .
Jan. 1 to Dec. 31
1944
1945
1944
12.740
137.321' 121.136
27.972
240.835
237.802
10,720
117,363
100.899
30.957
429,08.1
471.634
109.461 1.177.353 1.208.898
191.850
2,101.963 2.140.369
·Includes receipts from the sale of livestock and live3tock products.
SOURCE: United States Department of Agriculture.
LIVESTOCK RECEIPJ'S-(Number)
- - -Fort Worth
March February
March
1945
1946
1946
Cattle ..... ........ .... . 41.272
56.333
33.989
12,713
CalVt1l ••.• ............. 11.732
22.017
47,og7
75,604
Hogs ..•... . . . . . . . . . . , 55.679
Sbeep . . .. .... .. ....... . 108.742
95.813
83.354
..
March
1946
17.619
15.935
8.Q62
21.225
San Antonio - - March February
Hl45
1946
20.019
17.688
13.606
13.234
7.181
11,017
22.811
21.827
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundred weight)
- - -Fort Worth>---_ _ _ San Antonio - - _
March
March
February March
:March Febmaty
1946
1946
1946
1946
1945
1946
117.35
116 .25
117.35
116 .50
115.25
116.50
Deef steers .. . •..•.•
Stocker steers ..... . ... . . .
Heirers and yearlings .... .
Butcher cows . .. . ....... .
Calves ................. .
Hogs . ....•...... . . .. .. ..
Lambo ........ ...... ... ,
lU~
lt~
13.00
16 .00
14.65
14.75
12 .75
14 .50
14 .55
16.00
l~ :~
13 .75
16 .10
14 .65
14.50
16 .W
14 .50
16 .00
14 .65
14 .25
. i4:i.i
12 .00
14.75
14 .55
15 .00
16.50
13 .00
15.50
14.M
14.15
PLANTED ACRES-TEXAS AND FIVE STATES
(Thousands of acres)
Corn . . .
Winter wbc~t ... .
Oats ............. .
Barley .••........•
Flax ...
Rice . ..... . ..• •.. ,' .....
All oorghurus ....... ' .
Irish potatoes ....
Sweet potatoes .....
Soy beans alone§ ...
Cowpeas 8lonel
Peanuts alonei .. .
All tame hay ...
Average
1935-44
5.100
4.426
1.781
aoa
32t
299
6,755
56
59
30
537
549
1.207
Texas
Indicated
1945
4.262
5.167
1.946
28.1
66
400
7.840
57
53
9
25.
882
1.431
1946
3.921
5.994
1.849
250
82
412
7.056
62
66
6
241
794
1.3'5
Five State3· - - _
Indicated
1945
1946
7.253
6.910
5.1671
5.9941
3.395
3.234
726+
518+
107·
IDe·
984"
1,0089
10.236
9.498
139
146
175"
187"
205"
144"
1:/4"
118"
783"
377"
354 "
7M"
1,1M"
1,065"
2.727 8
3,182 8
3,07511
Average
1935-44
8.849
4.4261
3.400
806'
W
821 a
9.407
144
tShort.-time a.verage. §Grown alone (or nil purpoecs; partly duplicated in hay acreage.
·Aruona. Louisiana, New Mexico, Oklahoma and Texas. tTexas only. +Arizona, New Mexico,
Oklahoma and Texas. .-y'exas, Arizona. and Oklahoma. 9Louisiana and Texas. "Texas ,
Louisiana and Oklahoma..
-Acreage harvested.
SOURCE: United States Department of AgricultUl'e.
MONTHLY BUSINESS REVIEW
FINANCE
The gross demand and time deposits of member banks in this
district averaged $5,567,000,000 during March, showing a moderate increase of $13,000,000 as compared with the preceding
month, after having declined sharply in February. The deposit
expansion occurred at country banks and more than offset the
decline at reserve city banks. The reserve balances of member
banks in the district averaged $741,000,000 during the first
half of April, or moderately higher than the averages during
February and March, but still eharply below the high level
reached in December and January. Required reserves increased
sharply during March, causing a sharp decline in excess reserves.
During the last half of March, excess reserves averaged only
$109,500,000 in comparison with an average of $151,400,000
during the first half of January. Member banks have reduced
their balances with correspondents by about $170,000,000 since
the peak was reached in the first half of January at approximately $915,000,000.
Federal Reserve notes of tillS bank in actual circulation have
continued to decline, and on April 15 , the total circulation
amounted to $589,100,000, which was $6,131,000 less than a
month earlier. During the four months since the peak was
reached at mid-December 1945, this bank's Federal Reserve note
circulation has declined by approximately $38,000,000, ao.d the
total is now at the lowest level since last July.
The substantial changes in the principal asset and liability
items of weekly reporting member banks in learung cities of this
district between March 13 and April 10 were associated with
the cash redemption of outstanding obligations of the United
States during the period and with payments of the March 15 instalment of income taxes. During the four weeks, deposits in
these banks declined by approximately $87,600,000, due to the
heavy withdrawals from Treasury war loan accounts and from
interbank balances. These banks also added $3,900,000 to their
reserve with the Federal Reserve Bank. To obtain the funds
needed to meet the deposit withdrawals and the increase in reserve balances, the weekly reporting hanks withdrew $21,000,000 from their balances with correspondent banks and reduced
their total loans and investments by $63,100,000.
The loans of these banks showed a further increase of
$6,300,000, reflecting the continued expansion in real estate
loans and in "all other" loans, wlllch include personal and instalment lending. In contrast with the sharp increase that had
occurred in the preceding six months, commercial, industrial,
and agricultural loans declined slightly during the four weeks
ended April 10. Total loans of $682,000,000 on April 10 were
$276,000,000, or about 68 per cent, higher than on the corresponding date last year. The investments of reporting banks were
red uced by $69,400,00 0 during the four-week period. Although
holdings of Treasury bonds increased by $6,300,000, holdings
of all other classes of Government securities declined substantially. The reduction in certificates of indebtedness and Treasury
notes was associated with the Treasury redemption in cash on
March 15 and April 1 of the maturing and called issues of these
securities. In order to adjust reserve positions, reporting banks
sold Treasury bills to the Federal Reserve Bank under repurchase
option.
63
CONDITiON STATISTICS OF WEEKLY REPORTING MEMBER BANKS
IN LEADING CITIES- Elc\'cnth Federal &'fIcrvc Diatrict
(Thousands of dollars)
April 10,
1946
Tot:l.lloans a.nd inveetmenlM ........... . •.. . . ..••. $2,132,987
Total loans ........ , ... , ........ , ........ .. .. :
682,278
Commercial, indll3trial, and agriculturalloal18...
403,681
Loans to brokens and dealen in securities., .... ..
6,414
Other loans ror purehMing or carrying securities. .
151,377
Real estate loana ....................... ,.....
36,101
Loans to oonu.. .. ... ......... .. ., .,.,.....
349
All othecloana..... ..
. . ... .... "..
84,21)6
Total investments....... ............. .......
1,450,701)
U. S. Treasury bill:J . .. ....... .......... ""
sa ,4 B5
U. S. Treasury certiliea.tes of indebtedness •. ,..
454,072
U. S. Treasury notes..........................
214,739
U. S. Government bonda ..................... ,
663,446
Obligations guaranteed by United States Gov't. ,
145
Other 6ecurities .. . ... ,........
64,842
Reserves with Federal Reserl'e Bank.
390,834
Dalanees with domestic banks ... ,. .. . . . . ..
234,617
Demand depoeit.a-&djusted- ......... ,. . .
1,31)4,354
Time dep*ta.. ..... .. .. .. .. . . . . . . .. .. . .
21)9,585
United States Government deposits....... .
413,882
Interbank deposite ....
.
..
. .• ••.. . .
556,987
Borrowings Crom Federal Re8erve Ba.nk......... .. ..
None
Aprill~.
Total cash reserves .... . ... .
Diseounf.3 for member banks
}~oreign loans on ~old ... . . . . . .
U. S. Government. securities ..
Totul e!ll'rUo}l; assets. . . . . . . . . . . .............. • .
Member bank reserve deposits . . ........... .
Federal Reserve Not-es iu actual circulation .. .
April 16,
1946
$47J,200
194~
5{J
[,280
877.023
819,253
728.751
580,082
'554,359
None
None
600,006
609.005
644,547
556.960
March
1945
19.740
51,084
97,966
61.893
57.713
6.746
583.680
00.170
224,125
50,266
634.393
12,604
33,339
18.973
26,410
9,444
16.008
164,177
84,828
23.260
35,295
24.207
29.419
30,262
cities . .. .... .... 12,601,189
$2,362.002
...............
Abilene ..
Amarillo., ..............
Austin ... ... ... ..••.•••.
Beaumont ...............
Corpus Christi •..•••.•••.
Corsicana ••.••.•••. . .•••
Dallas .... . .•••.. . , . .•..
El Paso .......... . .. , . ..
Fort Worth ....... . , .... .
Galveston .............. .
HOlLSton •... •.•.•.•• . . . . .
L!lredo . ............ . ....
Lubbock. .•....••.. . ....•
Monroe. La ....... . . . ....
Port Arthur ........ . .. . .
Roswell. N. M....... . . . . .
San Angelo ............. .
San Antonio .............
Shreveport. La ...••. _• . ••
Texarkana-........ . _•. ••
Tucson. Aril •••..... _• . ••
~~~:::::::::::::::::::
Wichita Falls ............
Tvta1~24
,
None
Pctg.changc
over year
+19
+6
+8
-5
+22
+12
+ 9
+23
-3
+17
+5
+18
+18
+30
-2
+36
+31
+25
+10
9
+32
+23
+48
+(4
February
1946
$ 20.500
49.196
80.486
58,232
51,345
7.138
571,593
74,549
195.677
43.246
566,838
13,14.8
36,148
21,941
24,285
10,571
19,021
172,328
76,932
[6,319
31),022
26.792
35.171
35,483
-
+10
Pctg,change
over month
+14
+10
+31
+1
+37
+6
+11
+9
+11
+35
+18
+8
+9
+13
+7
+22
+11
+19
+21
+30
+16
+11
+24
+22
$2,247.551
+16
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Average of daily figures- Thousanda of dollars)
Combined total
G.....
demand
1944 . ......... $3,320,226
1945 ..• . . .... 4.050.000
4.824,008
No\'ember HI4b
December HI45 ... ....... 5.100,360
... 5.2[5.222
January 1946 ..
. 5.097,096
February 1946 ..
.. 5.101.702
1946.
March
M....h
M.... h
Reserve city banks
Gross
demand
Country bann
Gross
demand
Time
Time
Time
'277,705 11,725,356 1171,392 $1,594;870 ,106.313
367,380 2,045,185 232.600 2,004,415 134,780
444,663 2~44.1,944 284,172 2,382 1
°64 160.491
451.887 2,634.030 28.1,371 2,414.730 16MI6
452;353 2.681.476 286,583 2.533.746 165.;70
457.348 2,620.509 293.575 2,476,787 163,773
465.564 2,592.431 296;725 2.509.271 168,839
SAVINGS DEPOSITS
Nwnoo
ref:nt g
88l,554
Wicbit.a Falls ..•...... . ..
AU other. .............. .
3
57
754.053
5%,2[3
Total ...... . ..
103
5{J
591,111
-Includes the figurca of two baw in Teurkalla, Arkaosas, located in the Eighth Di3trict.
Fort Worth .... .. . . ......
Galveston .• . ....• . •.•.•.
Houston ........ . . .. .. . •.
Lubboek ........... . •.•.
Port Arthur ..•. . .... •. •.
San Antonio . ........•.•.
1,280
880,224
51~~~:
68.217
503.294
227,096
657.194
145
64.188
386,951
2.55,507
[.397.608
296,543
467,102
(Tbouanda of doUars)
March
1946
23.477
5(,[00
105.825
58,774
70,547
7,573
634,528
8[.172
218.050
58,571
666,873
14,858
39,310
24,738
25,899
12,849
21,026
2050436
93,074
2[.185
46.509
29,853
43,472
43.440
3
8
2
3
4
8
2
2
5
March.
1946
$480.142
22,300
154
59.433
[,223.305
71.892
388.445
21{1,816
533,231
9.981
46.540
355,825
225,485
1,252,969
238,744
177.873
DEBITS TO INDIVIDUAL ACCOUNTS
Beaumont ........ .. .....
(Thousands or dollarg)
5{J.527
MareD 13,
1946
12,196.112
675,978
403.812
6.120
151,747
33,605
386
80.308
1.520.134
-Includes all demand depoaite otber than interbank. and United States Government, less
o.lsh items reported on hand or in prOCWl of oollootion.
Dallas ... . ....... .. .. .. .
EI Paso .. . ..... . ........
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
April 11,
Hl45
1[.676.312
406.407
269,225
4.702
Shreveport, La.. ..•..• .•.
'Vaco .............. . ..• .
3
3
Percentage cha.nqe ill
March 30, 1946
savings deposita from
Number of Amount of
Ma.roh 31,
savings
8llvinp
Feb. 28,
1945
1946
depositors
depolute
12;525 $ 7,749,703 +17.6
+ .6
69,319,956 +27.5
+ 1.0
128,887
28.(43
22~2,799
+35.6
+ 1.3
31,282,758 +23.8
39,730
+ .~
19,748,989 +18.7
23,812
+ 1.7
63,572.101
04.,536
+18.2
+ .5
1.038,696 +91.1
.2
880
5,477,674 +22.8
6.035
+ 1.4
35,559
4t.i88,700 +25.6
+ .9
33,146
25,614.083 +26.2
+1.1
a;712(592 + 28.4
+ .9
~255
+13.6
~12
4~[0.~19
+ .02
4g, 5'2,417 +24.5
+ 1.2
60,221
-480,2-41
1350,950,787
+24. 3
--.9
+
64
MONTHLY BUSINESS REVIEW
INDUSTRY
Production of crude petroleum in this district during March
declined 12 per cent from February to a daily average rate of
2,015,000 barrels, while production outside the district continued unchanged at the February rate. April production is expected to increase somewhat. Initially the Texas Railroad Commission set April allowables for the state at 45,000 barrels per day
above allowables for March; but on April 9, in response to urgent
requests from United States naval procurement officials for an
increase in crude production as a means of making fuel oil more
readily available for the Navy's needs, the Commission amended
the producing schedule to permit 24 rather than 21 days production during the month. It is estimated that this latter action will
result in an increase of 140,000 barrels in daily average production.
Reflecting the decline in production, Eleventh District crude
stocks decreased 10,273,0 00 barrels during the six weeks ended
April 13 and constituted 48.8 per cent of the total stocks of
crude in the United States, compared with 51.5 per cent on
March 2 and 55 per cent one year ago. District crude runs to
refinery stills remained unchanged at a daily average rate of
1,406,000 barrels. Outside this district, daily crude runs jncreased 45,000 barrels during the five weeks to an average of
3,256,000 barrels. Stocks of gasoline for the nation as a whole
remained virtually unchanged during March. By April 13, however, they had dropped to 102,444,000 barrels, compared with
95,777,000 a year ago. Residual fuel oil stocks registered a moderate increase of 573,000 barrels to an estimated total of 37,362,000 barrels during the week ended April 13, compared with
approximately 38,660,000 barrels a year ago.
Drilling activity in the Eleventh District during the first
three months of the current year, as measured by daily average
well completions, was at the highest level of any quarter since
1941. Completions averaged 23.5 daily, representing approximatelyan 18 per cent increase over the first quarter of 1945.
Total United States completions during the past three months
increased approximately 12 pcr cent over the same period last
year, to a total of 5,808. Of the 2,137 completjons in the district,
1,293, or slightly better than 60 per cent, were producing oil
wells.
For Texas as a whole, March witnessed an increase both in
total employment and in total unemployment, the latter development being due to the rate of return of ex-servicemen to the
civilian labor force. The State Director of the United States
Employment Service reports an expansion demand for labor,
especially in the constn1ction industry, which should result very
soon in a further increase of 3 per cent in numbers employed and
a corresponding decrease in unemployment in the major industrial centers. Data recently rdeased shaw Texas unemployed
workers as totaling 200,000 persons. In 26 labor market areas,
there was 11 per cent unemployment compared with 7.5 per
cent two months ago and 15 per cent in the spring of 1940.
Only 4 of the 26 areas enjoy a balanced labor market. They are
El Paso, Borger, Amarillo, and the Galveston-Texas City area.
Cotton consumption in March at United States mills, which
aggregated 804,000 bales, was 15 per cent above that in February, but 8 per cent below consumption in March 1945. Total
domestic consumption of 5,958,000 bales during the first eight
months of the 1945-46 season was 8.5 per cent less than for the
same period last year.
Continuing the downward trend observed in January, production of Portland cement at Texas mills during February
declined to 742,000 barrels, a 6 per cent drop within the month.
While this production rate was somewhat lower than that of
recent months, it represented an increase of 60 per cent from
February 1945. Moreover, February shipments of 810,000 bar-
rels were 14 per cent and 63 per cent above shipments in
January 1946 and February 1945, respectively. Stocks at the
end of February totaled 669,000 barrels, or 34 per cent less
than those existing one year earlier.
The construction industry is currently adjusting itself to
the provisions of an order issued on March 26 by the Civilian
Production Administration which is designed to give top
priority in allocation of building materials to the veterans'
housing program. This order requires prospective builders, with
certain exceptions noted below, to obtain a permit from the
nearest regional ollice of the CPA before beginning construction. Applications for the building of homes or other housing
COTrONSEED AND COTrONSEED PRODUCTS
_---Texas
Uniteri States- -Augwt 1 ro March 31
August 1 to Ms.rch 31
This season
Last stagOD
This seaoon
Last season
Cottonseed received at mills
617.091
661.708
922.949
765.736
3.050.550
2.899.177
4.101,921
3.507.550
39.682
188.859
369.721
795.977
Hulls (tons) .......... ... . . .
Li.lters {running bales} . .. .. .
100.175
306.200
154.239
208.801
233.846
361.078
178,570
234.907
902.888
1.279.035
69'.274
879.76a
I,O ::l4,:l62
1,600.390
812.051
1,026,399
Stocks on hand March 31:
Crude oil (thousa.nd Ibs.)....
5,881
11.605
25.879
19.797
27.033
24,321
55.571
38,199
69.964
36,793
104,620
57.807
98.394
(toM) ...... ........ . .... ..
CotLonseed crushed (tons) .. .. .
Cottonseed on hand March 31
(toM) ..
Production of products:
Crude oil (thousand 100.).
Cake and meal (tons) .
13.999
7.952
13,521
SOURCE: Uwted State! Bureau of Census.
Cake and meal (tons).. . . . ..
Hulls (tons). . . . . . . . . . .. . . .
LiJlter8 (runuing b,,\es) . ..
DOMESTIC CONSUMPTION AND STOCKS OF COTT0N-(Bales)
March
March
February
August 1 to Mn ch 31
1945
1946
'fhis season Last season
17.641
]6.798
12'1.640
126.526
Consumption at:
(948
Texas mills....... . ......
17.854
United St.ates mills... . . ..
803,937
U. S. stocks- end or month:
In consuming estabm'ts.. . 2.388,733
Public stg. tt compresses . . 8.628,870
857.431
746,994
5,058,150
6.509.391
2,237,853
11.720.524
CRUDE OIL PRODUCTION-(B.",Is)
March 1946
Increase or decrease in daily
a.verage production from
Dailyavg.
Total
production
production
March 1945 February 1946
227,922
9,330
- 10.335
North Texas ........ . . .......
7.065.600
- 34,842
- 61,103
441,290
West Texas ....... . ...... . ... 13.680.000
446.752
- 20,123
- 82.361
East Texaa . . . ............... 13.849.300
9.133.600
204.632
- 57.020
- 60.222
Southwest. Texas .... .... . ....
427,239
-136.9S3
-114.461
13.244.400
Texas Coastal ...... . ....
-
Total Teus .......
New Mexico ..............
North Louisiana ........
1.837,835
56.972.000
2.969.850
2.568.500
-320.536
8.080
12.558
+
95.802
82.855
-316.058
Total District .... .. 62.511.250
2.016.492
SOURCE: F...stimated from American Petroleum lD.!Ititute weekly reports.
-266.244
2.632
+ 2.170
-
-266.706
BUILDING PERMITS
Percentage change
Percentage
valuatiou from
Jan.1 to Mar. 31,1946 change
March 1946
valuation
Valuation frOID 1945
No. Valuation Mnr.l945 Fcb.1946 No.
Abilene ....... . . .
Amarillo .. . ......
Austin ........ .. .
Beaumont . . .. .
g~lf:. ~~~~ .
El Paso .... .. .. .
Fort Worth ...
Galveston ....... .
Houston . .......
Lubbock ...... ...
Port Arthur . . . ...
&.n Antonio ......
Shreveport, La .. ..
Waco
Wichita Falls . . ..
103 $ 677,112
239 1,106,507
531 1.917.725
301
556.418
374 1.747.757
1,523 6.499,019
350.590
116
714 3,512.765
136
344.650
912 15.390.620
752,725
258
210
299.689
1.488 4.645.577
432 2.132.497
173
519,973
93
209,817
-----
Total ...... 7,603 $40,663,441
"Over 1,000 per cent.
+400
+923
+254
+543
+0.2
.
+519
+650
+203
+566
+807
+887
.
+660
+332
+406
+ 9
+ 27
+ 22
+101
+220
+ 28
+ 30
+ 16
+220
+182
+ 34
+ 36
+138
+16S
+1l2
+ 87
274 I 1,822.772
689 2,675,243
1.324 '.890.679
720 1,063,111
822 3.059.874
3.961 17.165,520
323 1.026,753
1.9S3 8.S16.577
308
716,768
2.217 28.918.668
653 1.740.194
579
812.625
3,615 9.199,524
1.054 3.578.'03
389
977.888
69 1.592
229
-- ----19.1l9 186.856.191
+ 87
+452
+799
+238
+ 41
2
+596
+547
+334
+324
+298
+953
+603
+531
+355
+722
+498
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(Thotls.'mds of dollars)
March
March
February
January 1 to March 31
1946
1945
Eleventh District- Iotal... $ 61,592
, 38.03'
Residential. . . . .
28.796
2.458
All other. . . . . . . .. . .
32.796
35,576
United St.ates*-tot.'l.I.. ...
697.593
328,874
Residential .. . . ' .
275,241
20,943
All other.
422,352
301,031
·37 state.! east of the Rocky Mounta.i..n8.
SOURCE: F. W. Dodge Corporation'
1946
, 37.573
9.776
27,797
387.399
102.079
285,320
1946
, 134.8<5
48.294
86,5b!
1.442,493
467.035
975.458
1945
, 71.000
4.512
66.538
616.780
65.779
551,001
MONTHLY BUSINESS REVIEW
for veterans will receive ready approval. The beginning of any
other type of construction, including commercial buildings,
industrial plants, farm construction, and housing for nonveterans, will be denied a permit unless, in the judgment of
the citizens' advisory committee associated with the regional
CPA office, the project is essential and non-deferrable. The
same rule applies to the beginning of any major repairs, additions, or alterations of existing structures or of fixtures and
mechanical equipment which are directly a part of the building.
The order does nOt require authorization for the completion
of construction jobs in progress on March 26 if prior to that
date materials which are to be "an integral part of the structure" had been incorporated into it on the site. The number
of commercial and industrial projects which are thus exempted
constitutes a sizable volume of construction which, until completed, will compete for a share of the nation's short supply of
building materials. An index of this condition is found in the
fact that construction contracts awarded in this district during the twelve weeks of 1946 prior to the issuance of the order
included approximately $49,025,000 of nonresidential to $33,350,000 of residential construction.
The order exempts construction and repair of roads, streets,
railway tracks, fences, bridges, tunnels, pipe and power lines,
sewers, mines, wells, dams, or canals; also repair and mainte-
nance work in industrial, utility, and transportation structures,
"unless such work is capitalized for taxation purposes." These
are, for the most part, engineering projects which do not draw
heavily upon the materials required for construction of homes.
Certain other construction and repair projects do not require
CPA authorization if the costs are not in excess of the amounts
listed below:
(1) Houses designed for five families or less ......... _. $ 400 a job
(2) Hotel, resort, apartment house, or other residential building for occupancy of more than
five families ...................._ ........................... __ $1,000 a job
(3) Commercial or service establishment ............_ $1,000 a job
(4) Farm building, excluding farmhouses .............. $1 ,000 a job
(5) Church, school, hospital, charitable institution, or public building . __ ._... _ ... _ . .'_.. _ .. _._ $1,000 a job
(6) Factories, processing and assembly plants, lumber camps, transportation terminals, utility
structures, and simi!.r establishments, excepting sen· ice stations and garages ................... $15,000 a job
(7) Other structures ............................. _._ ......... $ 200 a job
Federal Government projects are exempted, but plans for
such projects are being re-examined and sifted by an interagency committee.
By an amendment announced on April 11 to the CPA's
Priorities Regulation 33, the priorities assistance system for
obtaining building materials for construction of veterans'
housing was expanded to include new classes of individuals,
notably builders 0.£ non-veteran housing accommodations which
were under construction before March 26. Except in unusual
cases, however, applications for priorities to complete such struc-
tures will not be approved if the proposed sale price is more
than $15,000 or the shelter rental more than $120 a unit per
month . The amendment also extends Hycterans' preference" in
building, or in buying o-r renting housing accommodations
built with priorities assistance, to present members of the Armed
Forces and the Merchant Marine, Americans who served with
allied forces in the war, and to the spouses of members of the
Armed Forces who died in service in \Vorld War II.
With a view to making more housing available to veterans of
limited means, the National Housing Administration issued an
order on April 20 directing that at least one-fourth of all housing built for veterans be for rent at moderate prices, and that of
65
the remainder built for sale half must be priced below a dividing
line figure which varies from $9,000 down to $4,500 for different communities, and the other half must not be sold for more
than the previously established ceiling of $10,000. It is said to be
the intention of the. NHA, by this order and by the priority
action for which it provides, to channel most of the country's
residential building materials into houses considerably under the
present $10,000 sales and $80 rental limit.
The order does not, however, affect priorities already issued for
veterans' emergency housing under earlier orders of the NHA or
the CPA.
The virtual ban on the beginning of new industrial construction may improve demand for surplus government-owned
war plants which can be converted without major expenditures
of money and building materials into suitable housing for new
or expanding civilian industries. Recent press releases of the
\Var Assets Administration reveal considerable progress in the
disposal of industrial plants and machinery.
It seems unlikely that the total number and value of building
permits issued and of construction contracts awarded will be
diminished; on the contrary, the number may even be increased, but construction activity will be heavily concentrated
in the field of housing. The priority which the CPA order of
March 26 and the recent amendment to PR 33 give to the
construction of homes for veterans may be expected to increase both the number and the dollar volume of applications
coming from ex-servicemen to commercial banks of this district
for government-guaranteed mortgage loans. At the same time,
a decline seems inevitable in loans for commercial and industrial
construction, a field in which commercial banks are not large
lenders.
Current data reveal that, despite shortages of materials and
some uncertainties as to forthcoming Government regulations,
the value of construction contracts awarded during March in
this district was well sustained, compared with the previous
month. The value of all contracts awarded in the district during
the month totaled $61,592,000, in comparison with $37,300,000
during the previous month and $38,000,000 in March 1945. In
residential awards, not only does the total of $28,762,000 represent an increase of 152 per cent over February, but the value of
residential awards was greater in March this year than for any
other month on record except December 1942, when only 7 per
cent of the awards were privately financed.
Meanwhile, troublesome deficits in supply of vital materials
are indicated by official estimates of production for 1946. In
such important items as brick, lumber, clay sewer pipe, cast-iron
soil pipe, structural clay tile, and gypsum board and lath, an·
ticipated deficits of national production in relation to demand
range from 12 per cent to 31 per cent. Similar shortages are
reported for asphalt roofing, bathtubs, lavatories, and sinks.
Even full capacity production is reported to be short of next
year's requirements for such items as soil pipe, wallboard, building blocks, and plywood.
The most recent report of the Director of War Mobilization
and Reconversion states that lumber production difficulties are
being ironed out and that the outlook is improving. Total
United States lumber production during January was 1,900,000,000 board feet, or 16 per cent less than during January
1945. Production during the first quarter is expected to total
slightly more than 6 billion board feet, or approximately 750,000,000 board feet less than during the same period last year
and 1.8 billion hoard feet below the output for the first three
months of 1941. Of the total lumber production, 40 pcr cent
has been set aside for veterans' preference housing, whereas
about 25 per cent of the lumber produced during the decade
preceding the war was used in new residential building.
66
MONTHLY BUSINESS REVIEW
MAY 1,1946
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Boord of Governors of the Federal Reserve SYltem)
INDUSTRIAL PRODUCTION
I"VItlllT
"
h<"lCA~...........:t(""''''~TA''''~D.ltn.'''_'~.'1'OTA'-
0
I ~" r-
''''
"
0
/
180
r
l!
160
~
140
'0
K r- '
I
00
}/
MNAlfK;'Ct
::::;t;:;k-+! r-
i-
EI i l ~'~H
eo
l
Q,
40
~:~r;."\
I
LL
80
HI
/ ,
;0
940
1942
$44
j,
I
o
1946
Federal Reserve index. Groups are expressed in
terms of points in the total index. Monthly figtlres,
latest 6hown are March, 1946.
VALUE OF CONSTRUCTION ACTIVITY
~. '
_"ClIIUM1
000
IIIlUONJ<611Ol.
TOUL
r""
1400
:
1000
r- - -- !
'/
,
eoo
12
~O-f
1
-
''''''
....
•
\
,
\
.... /IV
:;;: 4
~
A
."
l~nlD£KT1AL
'00
.,.
\
/
200
"~T~
tttttW/'
00
lIMO
1942
1944
1946
1940
I!HI!:
1944
HI46
Figures beginning in 1944 are joint estimates of
the Departments of Commerce and Labor; earlier
figures estimated by Commerce. Da ta exclude reDRir and maintenance work. Monthly averages of
quarterly data prior to July, 1944; monthly data,
thereafter. Latest figures shown are for March.
1946.
.'"
DEPARTMENT STORE SALES AND STOCKS
00l.IM.
,~
¥dIAl(
SUSOIWl.1 AW.lllTED. IbI -"'1O'
~
260
0
fA!
A
.00
I
.r1 . VII
I nr!I' fl'lI ~-\
" r::!..\
/"! ~ '\j'~
'-----
~
180
,
160
140
120
100
~,
•eo
•"'?
220
I80
! , - - - I 60
I40
I'0
t,.....t: ~ ~,
I 00
INDUSTRIAL PRODUCTION
Production at factories and mines, according to the Board's seasonally adjusted index, rose from
a level of 153 per cent of the 1935 -39 average in Febru.ary to 169 in March. This is slightly above the
level reached last November before production was reduced by strikes in the automobile, electrical
equipment, and steel industries. In April the index. will probably show a decline of } or 4 points as
decreases in coal and steel are only partly offset by continued increases in other industries.
The large increase shown by the total index in March was due for the mQst part to a 5harp
recovery in steel ingot production following settlement of the labor dispute. There were production
gains also in industries manufacturing automobiles, machinery, stone, clay and glass products, furniture,
textiles, paper and rubber products. These gains in steel and other industries were offset only in small
part by declines in the nonferrous metal industries, some food industries and crude petroleum.
Steel ingot production for the month of March averaged 84 per cent of capacity as compared
with 20 per cent in Fe bru~ry and at the end of March was close to 90 per cent. Subsequently, due to
reduced coal supplies, steel output declined and by the fourth week of April was down to a rate of
74 per cent of capacity. In the automobile and machinery industries production increased substantially
during the latter part of March and the early part of April, reflecting improvement in steel supplies
and settlement of important w~ge disputes.
Output of stone, clay, and glass products continued to advance in March and production in the
first quarter of this year exceeded the previous peak levels reached at the beginning of 1943.
Output of nondurable goods rose further in March to a level of 168 per cent of the 1935-39
average. the highest level since l~st June. Production of nondurable goods for civilian use is now in
larger volume than at any previous time. Activity at woolen mills has shown an exceptionally large
advance sine.:: the end of last year and, with marked increases in COtton consumption and rayon shipments, the Board's index of textile production in March was ~t a level of 162 per cent of the 193f-39
average. This equals the previous peak rate at the beginning of 1943.
Mineral production declined in March as a further advance in coal production was more than
offset by a decline in crude petroleum output and by work stoppages at important metal mines.
Activity at bituminous coal mines was suspended beginning April lowing to a labor-management
dispute over a new wage contract.
EMPLOYMENT
Employment in nonagricultural establishments rose by about 600,000 in March after allowance
for seasonal changes. This rise reflected increased employment in manufacturing-largely in the iron
and steel group--and continued gains in trade and construction. There were further substantial
releases from the armed forces. The total number of persons unemployed remained at a level of about
2,700,000 in March .
DISTRmUTION
Department store sales rose sharply in March and continued at a high level in the first haH of
April. Total sales during the Easter season are estimated to have been about one-fourth higher than
last year.
Preight carloadings during March were close to the record rate for that month reached laSt year.
In the first three weeks of April loadings declined, reflecting the stoppage of bituminous coal production. Shipments of most other classes of revenue freight continued to increase.
COMMODITY PRICES
eo.
eo
1939
1940
li41
1942
1941
1944
194~
1946
Federal Reserve indexes. Monthly figures, latest
shown are for February, 1946.
MEMBER BANKS IN LEADING CITIES
1 11.1._\11_ •• ""
.0
Industrial production advanced considerably in March and appears to have dfclined only moderately in the early part of April notwithstanding a complete shutdown in the bituminous coal
industry and some reduction in output at steel mills. The value of retail trade has continued to ,et
new records during this period and wholesale commodity prices have risen further.
I
/
120
100
,d~~::~l- ,
'0
r- HONOU~OU
200
~'i
.
'o~--+---+---f---f----r--
Wholesale prices of agricultural and industrial commodities continued to advance from the middle
of March to the third week of April. The general level of wholesale prices is now higher than last
September by something Over four per cent. In reccnt weeks ceiling prices for a number of products
have been raised considerably an d where ceilings have been removed prices have generally risen. A
bonus of 30 cents a bushel has been granted on wheat delivered by May 25 under the certificate plan
to help meet the critical food situation abroad, and a like payment has been offered fo r SO,OOO,OOO
bushels of corn. Subsidy payments for some commodities have been increased to prevent further price
advances.
BANK CREDIT
Member bank reserve pOSitIOns tightened in the last half of March as Treasury deposits at the
Reserve Banks were increased by large income tax collections. Banks sold short-term Government
securities largely t o the Reserve Banks, and drew down their reserve balances to meet this loss of funds.
Reserve positions were eased on April 1 in connection with the cash redemption of 2.0 billion dollars
of Treasury certificates on that date, and in the following weeks banks bought Government liecuritics
and reduced borrowings at Reserve Banks.
Demand devosits (adjusted) exclude U. S . Govern~
ment and interbank deposits and collection items.
Government securities include direct and guarnnteed Jssues. Wednesday figures. latest shown, are
for April 10, 1946.
Commercial and industria! loans at member banks in leading cities increased further. LoarlS to
workers and dealers rose at the end of March in connection with Treasury security retirement opetltions and declined sharply in the week endi ng April J. Deposits, other than those of the Treasury,
fluctuated considerably, reflecting large income tax payments and the April 1 tax assessment d.ne
in Illinois.
Yields on long.term Treasury bonds have remained relatively steady following a sharp decline in
anuar and the first half of February.
MONTHLY BUSINESS REVIEW
67 -
FEDERAL RESERVE BANK OF DALLAS
COMPARATIVE STATEMENT
(IN THOUSANDS 0 .. DOL.LAU)
ASSETS
INCREASE (NO SIGN) 0.
DEC.IEASE (MINUS SIGN) SINCE
April 24
1946
April 17
1946
April 25
1945
Gold Certificates on hand and due from U. S. Treasury _ _
_
Redemption Fund for F. R. Notes _________________ _ ______ _
____ __
433,763
25,894
-10,305
24
-54,246
5,750
Total Gold Certificate Reserves ____ _
________ _
Other Cash ______ __________
_____
________
______ _
________ _
__
459,657
-10,329
-48,496
Discounts and Advances ______
________ _ _ _____
__ __
__________
_
Industrial Loans__________
________ _
1,330
U. S. Government Securities:
______
____
__________
________ _
Bills _____________
Certificates _
___________________
________ __ ____ __
_ _
N otes _
_____________
_____________________
__
______________
_
Bonds ______________ __________
____
_ ______
_________________. ___ _
___
Total U. S. Govt. Securities_____
__________ _____
_
_________
_
Total Loans and Securities ___ _________ _ _
__
Due from Foreign Banks_ _______
__________________
__________ ________
_
F. R. Notes of other Banks _
_____________________
_ ______________
______
_
Uncollected items________________
_
______ _________
____
___________ ___
_ ___ ________
_
Bank premises _______
________ _____________
___
_______
___________ _ _
_ ___
Other assets ____
_____________ _____________ ______ _
Total assets _ _ _ __ _
10,842
-
1,983
1,000
1,280
510,826
267,801
64,632
38,223
881,482
14,039
22
2,696
5
16,718
882,812
4
3,414
101,330
820
2,435
1,461,314
16,718
116,509
40,160
21,701
-10,690
167,680
168,960
467
---10,955
170
16,047
535
17,443
59
52
140,314
LIABILITIU
F. R. Notes _____________ ______________ _______ _
Deposits:
_
______________
___
Member banks- reserve accounL ________________
U. S. Treasurer-General Account___
______ __________
_
Foreign _
_____ __________ _ ___ __________ _
__
_
Other deposits _____________
________
_______ ________
_
Total deposits ________
________ _
_ ____
_ _
_ _______
_
587,892
-
2,241
32,063
719,131
11,790
22,001
1,591
754,513
-
1,575
1,294
585
204
100
96,575
- 9,192
-11,765
- 1,200
74,418
18,077
46
15,982
29,320
59
135,860
4
910
4,645
Deferred availability items __________
_________________ _________
_
96,945
Other liabilities including accrued dividends________________________
_
_
482
Totalliabilities __ ____________ _______________ ___
____
___
____ _________ _ 1,439,832
CAPITAL ACCOUNTa
Capital paid in _________ _ __ ______ __________ _ ________ ---------------------------___ _ _______
__ __
Surplus (Section 7) _ ___ _ _ _ ____ _ ______ _ __ ___ ------ __ _______
___ _ ______ ___ __ ____
___ ____ ____
_
Surplus (Section 13b) _ _
__ ________ _
______________ _ ___
_____ ___________ ___ _____ _ _ _
__ ______
Other capital accounts __ ___ ____ ____ ____ ________ __ ___ __ _____ _-------------------_
_
____
_ _
__ ____
Total Liabilities and Capital Accounts ____________ _
Commitments to make industrial loans
6,566
10,670
1,307
2,939
1,461,314
178
61
16,047
-
1,101
140,314
178
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