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MONTH~Y
o f
the
BUSINESS REVIEW
FEDERAL RESERVE
Dallas, Texas, November 1, 1943
Volume 28, No.9
DISTRICT SUMMARY
For the third consecutive month there were no commercial
failures in the Eleventh District. Department store sales during
September were well above those last year and during the first
nine months of 1943 averaged 39 per cent above the corresponding period in 1942. At the end of September inventories were
IS per cent above those of a year earlier. Agricultural production goals for 1944 announced by the War Food Administr~
tion call for cultivation of the largest acreage ever planted 10
this country and for an all-time peak production of meat. F~od
and feed crop goals in Texas are larger than actual productIOn
during any previous year. As the result of record purchases of
new Treasury securities by nonbank investors during the Third
War Loan drive, deposits in war loan accounts exceeded $500,000,000 at the middle of October. Since June, 1940 Texas has
:eceived 3 per cent of the major war contracts and allocatio~
In the United States and ranks tenth among the 48 states 10
the value of war contracts received. Daily average production of
crude oil in the district rose to an all-time peak during September.
BUSINESS
Department store sales in the Eleventh District during September were 31 per cent above those in September, 1942 and
dUring the first nine months of 1943 have averaged 39 per cent
above those last year. The larger volume of sales has prevailed
Continuously since February and has oc~urred in virtua~ly ap
sections of the district. The percentage gam over last year 10 this
district has been consistently larger than in other Federal Reserve districts and substantially above the average increase in the
nation. Preliminary reports indicate that these trends continued
during the first two weeks in October. Piece goods, women's and
misses' ready-to-wear and ready-to-wear accessories have accounted for the largest part of the gains both from a dollar
viewpoint and on a percentage basis. With the exception of some
types of house furnishings and other scarce items, virtually all
departments have registered gains during the year.
During the first nine months of the year cash sales have been
in record volume and have accounted for an increasing proportion of total sales. Credit sales averaged only 23 per cent above
those of last year, whereas the percentage gain in total sales
has been almost twice as great. During September cash sales
accounted for about one-half of total sales. For about a year the
ratio of collections on regular accounts outstanding at the first
. of each month has averaged slightly above 60 per cent. During
September the ratio was 61 per cent. Collections on instalment
aCCOunts outstanding at the first of the month have averaged
between 25 and 30 per cent during the past twelve months but
!ncreased to 33 per cent in September. Despite the large increase
In sales inventories at reporting department stores at the end of
Septem'ber were 15 per cent larger than a year earlier. Orders
OUtstanding at the end of the month were 1 per cent smaller
than at the end of August but were 168 per cent greater than at
the end of September, 1942.
For the third consecutive month no commercial failures were
reported in the Eleventh Federal Reserve District by Dun and
Bradstreet Incorporated. During the first nine months of this
year there'have been only 11 commercial failures in the district
While the liabilities of defaulting firms have amounted to
$263,000.
AGRICULTURE
Agricultural production goals for 1944 alIDounced by the
War Food Administration call for cultivation of 380,000,000
°
BANK
o f
Dallas
This COllY is r eien sed for pubIicntion in mornin g !)n!)er s-
N
b 3
ovem er
acres of crop land, the largest acreage ever planted in the United
States, and for an all-time peak production of 30,690,000,000
pounds of meat, or 2,000,000,000 pounds more than the indicated record slaughter for 1943. The program places emphasis
upon cultivation of food crops and reduces goals for ~ertain f~ed
crops and some types of livestock. Increased productIOn of milk,
eggs, beef cattle, hay, corn, wheat, soybeans, peanuts and vegetables and decreased production of fowls, hogs, oats and some
other products are recommended. The goals for cotton and rice
production are unchanged. If Texas farmers attain the 1944
goals set for them, they will produce the largest food and feed
crops in the history of the State. Substantial increases. in produ~
tion of virtually all grains and feeds and moderate mcreases 10
production of milk, eggs and chickens are desired. Sweet potato
and Irish potato acreages are to be increased, but the peanut
acreage goal for the State is set somewhat below that of 1943.
The cotton acreage goal of 8,050,000 acres recommended for
1944 is the same as that of 1943.
Widespread rains during September relieved drought conditions in all sections of the Eleventh District except northwest
Texas. Range feed prospects were improved and stock water
supplies were increased in New Mexico, Arizona and most of
Texas and fall feed crops, citrus fruits and fall and winter truck
crops were benefited.
On October 1, the 1943 Texas cotton crop was estimated at
2,850,000 bales, as compared with 3,038,000 bales produced in
1942 and the 1932-1941 average of 3,419,000 bales. The indicated cotton production in Oklahoma and Arizona is smaller
than the production in 1942 or the 10-year average, but the
crop in Louisiana and New Mexico is expected to be substantially
larger than during those periods. A United States cotton crop of
11,478,000 bales is indicated for 1943, as compared with 12,824,000 bales produced in 1942 and the 1932-1941 average of
12,474,000 bales. The indicated yield of cotton per acre in 1943
is smaller in Texas, Oklahoma and Arizona but substantially
greater in Louisiana than in 1942. Cotton in the northwestern
districts of Texas deteriorated during September due to continued drought conditions, and the rains came too late in other
sections of the State to benefit the crop. By the end of September, cotton picking was almost complete in the southern half of
the State and was well past the peak in central, northern and
eastern counties. In the northwestern area, unfavorable weather
conditions and shortage of pickers caused some delay in harvesting.
The indicated production of corn in Texas on October 1 was
86,688,000 bushels, or approximately 8,000,000 bushels greater
than the actual production in 1942. The indicated grain sorghum production of 59,475,000 bushels is fractionally smaller
than the crop of 1942 but substantially greater than the 19321941 average. The rice, Irish potato and sweet potato crops are
expected to be considerably larger than in 1942 or the 10-year
average. Fall and winter commercial vegetable areas in south
Texas are in excellent condition :!;s a result of the general rains
received in September and a large acreage of truck crops will
probably be planted. Production of 16,800,000 boxes of grapefruit is indicated in Texas this year, as compared with 17,510,000 boxes produced in 1942. Production of oranges is expected
to total 3,000,000 boxes, or about 18 per cent more than was
produced last year. Wheat seeding has been delayed in the important northwest Texas area by moisture deficiency, and at
mid-October a large acreage remained to be seeded.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
The condition of ranges improved during September in all
sections of the Eleventh District except northwest Texas and
eastern Oklahoma, but at the end of the month the ranges were
providing less feed than at the same time in 1942. The condition
of livestock in tllls district is generally good, although considerably less favorable than at the same time in 1942 and somewhat
below the 20-year average. The Department of Agriculture reports that there will probably be a sharp reduction in the num~
ber of cattle, sheep and lambs fed during the corning winter and
spring as compared with the preceding year. Shipments of livestock in Texas were relatively large during September but slackened early in October.
The average farm prices of wheat, oats and rice increased
moderately in Texas between August 15 and September 15 and
the average price of hay increased markedly. The farm price of
grain sorghums declined substantially, but on September 15 was
still much higher than at the same time last year. The farm
prices of beef cattle and veal calves declined slighty in the State
and the prices of hogs and sheep increased fractionally. There
was little change in the farm prices of the other major agricultural products.
CROP PRODUCTION- (Thousands of units)
~Texas
Eleventh District-Estimated Production Estimated Produotion
Oot. 1, 1943
1942
Oct. 1, 1943
1942
2,850
3,038
3,599
3,745
86,688
78,561
100,086
93,887
35.697
47,438
36,386
49,053
15,694
11,210
19,880
15,181
3,682
4,818
10,642'
18, Ill'
Rico..... ...............
20,196
15,498
20, 196
15,498}
Broomcorn . . . . . • . . . . . . . .
4,400
6,600
28,000
44,000
Grain sorghuIDB. . . . . . . . . .
59,475
59,675
72,330
75,557
Tame hny.. .... ... ......
1,219
1,441
1,768
1,989
Peanuts. . . . . . .. . . . ..... .
423,200
430,080
592,100·
589,970Potatoes, Irish . . .. . . . . . . .
6,450
5,301
7,543
6,068
Potatoes, sweet. . . . . . . • . .
6,300
3.825
15,280·
10,433Pcaches .. . .. . . .. .. . . ....
900
1,610
1,400·
2,582e
Pecans. . . . . . . . . . . . . . . . . .
23,250
10,300
46,090·
22,200.
"Arizona, New Mexico, Okl ahomn~ ~n4 Tex... tTexas onlY. tNcw Moxico, Oklnhoma
and Texas. "Ari zona, Louisiana, Now MOXleO, Oklahomn, and T.xas. -Louisiana, Oklahoma'
and Texas. Other data for Elev.nth District d. rived from estimates by states.
'
SOURCE: United States Department of Agri.ulture.
Crop
Cotton. . . . . . . . . . . . . . . . . .
Corn ........ ... .........
Winter wheat .......... . ·
Oats .. ....... ....... .. ..
Barley. . . .. .... .. . . . . .. .
Uuit
Boles
Bushels
Bushels
Bushels
Bushels
Bushels
Pounds
Bushels
Tons
Pounds
Bushcls
Bush.ls
Bushels
Pounds
LIVESTOCK RECEIPTB-(Number)
Sept.
1942
95,984
60,909
56,307
218,004
August
1943
97,100
40,108
77,545
406,530
Sept.
1943
18,813
27,488
11,831
45,887
San Antonio ~
Sept.
August
1942
1943
24,401
21,270
35,369
29,952
13,268
12,185
31,946
63,238
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars por hundredweight)
~FortWorth
B.ef ste.rs .. .. . . .. . ......
Btock.r ste.rs ............
H.ifers and yearlings .....
Butcher cowa . . . .... . ... .
Calves ..... ....... ......
Hoga ...... ..... .. .... ...
Lambs ..................
Sopt.
1943
$14.00
12. 50
14.25
11 .25
13 .00
14 .80
13 .50
Sept. 15,
1943
$651,853
127
145
150,546
401,350
211,959
None
270,455
507,563
365,277
hs;,b·.::::::::::::::::::::::
i~i!1re~i~~:s?~~e~~s~m.··.o.·~i. ~c~~;itie:.·.·.: : :::::::::::: 315,ll~
T l'
. ............... . . . . . • ...
None
Mota ~armn1aasets. . . .. .. ..... .... ..... .. .......
edm lr ban reserve deposits............. ...... ..
F era Reserve notes in aetllal circulation.. .. ......
'e
Sept.
1942
$13.75
12.00
14.75
10. 25
18 .00
15.00
14 .00
August
1943
Sl3.75
13.00
13.50
11.50
13 .00
14 .35
13 .50
Sept.
1948
$12 .75
San Antonio ~
Sept.
August
1942
1943
$12.50
$12.90
. ia:ilil
.ia:25
11.00
13.00
14.25
9.75
13 .00
14 .25
CASH FARM INCOME
(In thousands of dollars)
August
Receipts from:
Auguat
1942
Crops Livcstockt
1943
I
2,015
4,284
3,143
Arizona ... . ............ . 1, 669
8,813
13,110
4,779
17, 889
Louisiana . ... ..... .
3,588
3 ,110
6,698
4,495
New Mexico . .. . ... .
29, 098
39,963
38 ,283
Oklahoma . . ....... , ... . . 10, 805
41,882
94,671
00,837
T.x.... . ... ,. · ·········· 52,789
81,484 103 ,505 145,571
Toto!. .. .. .. 82 ,021
Jan. 1 to
1943
84,648
91,302
46,955
224,542
625,627
1,073,074
.ia:ilil
11.50
13 .00
14.25
Ang. 31
1942
61,035
72,035
32,914
195,179
473,230
834,393
tIncludes receipts from the IIlllo of livestock and livestock produets. - - - - SOURCE: United States Dcpnrtmcnt of Agriculture.
FINANCE
The Third War Loan drive produced no major changes in the
condition of member banks and the shifts that occurred were
about in line with expectations. In the Eleventh District, as in
other sections of the nation, the increases in loans and investments of weekly reporting me~ber banks reflected principally
efforts on the part of nonbank Investors to obtain funds "for the
315,210
491.804
373,282
150,~~~
270,3:~
CONDITION STATISTICS OF 33 MEMBER BANKS IN LEADING CIT[EB
(Thousands of dollars)
Oct. 13,
Oot. 14,
Sept. 8,
1943
1942
1943
TTot~~llolans and investments ....................... $1,315,988
$850,748 $1,220,73!
0... oans ..... . . ... .
329931
309,052
281,74u
Commercial, industrial '~I;d '~iri~~lt~rni i~~~~: : ::::
217:592
226,782
203,117
Loans to brokers and dealers in securities .. ........
6,175
2,375
2,150
Other loans for purchasing or carrying securities . . . .
24,774
12,067
13,273
~al estate loans. .. .. .. . .. .. .. .. .. .. . .. . .. .. .. .
19,793
20,028
19,772
ans to hanks. .. . .. .. .. .. .. .. .. .. . .. . .. .. .. ..
127
241
104
r~her loans .. ......... .. ....................
61 ,470
47,559
43,330
~ as ITvestments.. . ... . .... . ..... .... ......... . .
986,057
541,696
938,985
. . reasury bills.. ... .... .... . .... .... .......
112,087
79,176
93,508
U. S. Treasury certificates of indebtedness....... ..
240,768
79.187
235,979
~'l/easury notes..... .... . ...... ............
144,977
73,919
146,780
'l" .overnment bonds.. .... ...... .... ..... ...
379,173
211,196
353,971
Ob
Othlgotlons .g.uaranteed by United States GOI··t.....
56,714
38,685
56,737
er .e~urltles. . . . .. . . . . . .. .. . . . . . . . . .. . . . . . . .
52,338
59,533
52,010
~"fcrves W!tr Federa! Reserve Bank . .. .... ..... ....
279,688
262,612
313,895
DO ane~ 't I ~omestl.e banks.......... .... .... ....
247,843
271,888
1,024390,'~~~
T.em0:l eposlts-ndlustcd". . . . . .... . .....•......
040,626
776,956
u
UI":'te d ~SltS'G'" .... ..... ... : .. .... .. ... ..... . ..
150,241
128,948
150,50
It:,
~:f ~vernment deposits. . ...... .... .. . ..
255,608
34,201
74,13~
n r ap eposlts...... .. . .. .. . .. .. .. .. .. .. .. .. ..
44!J609
390, 106
43~J43
BorrowlDl!B from Federal Reserve Bank. .. . . . . . . . . . .
NOlin
Nono
NOue
:Ineludes an demand deposits other than interbank nnd United Stotcs Government, I'"
cosb ttems reported as on hand or in process of collection.
III
B
'
d
b
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Average of daily figures-Thousands of dollars)
Combined totnl
Reserve city bank.
Country b~
1
~FortWorth
Sept.
1943
107,969
Cattl.......... . .. . .... · ·
Calves .. . . ... . . .. . . ···· . 42,915
71,657
r~e~p::: :::: :: : ::: ::: ::: 249,355
CONDITION OF THE FEDERAL RESERVE B.~NK
(Thousands of dollars)
Oot. 15,
Oot. 15,
1943
1942
Total cash rescrves... . .
$596,062
$500,038
pideou~ts for member
52
191
Gross
demand
September, 1941. . . . .. . .. $1,618,651
~Ptembcr, 1942 ..... . . ... 2,055,183
J BY,
1943 .......... 2,846,872
e,
1943 .......... 2,876,672
AU y,
1943 .......... 2,874,871
Ugust'b 1943 .......... 2.925,047
Se ptem er, 1943 . .. ...... . 3,041,896
/r
Gross
Gross
Time
demand
Time
demand
5237,509 S 050,907 Sl32,164 S 667,684
227,472 1.166,232 127,368
888,951
235,518 1,580,606 139,352 1,266,266
238,040 1,584,550 141,240 1,292,122
241,779 1,562,343 143,301 1,312,528
245,390 1,585,376 145 304 1,340,271
247,911 1,629,896 147:579 1,412,000
Time
$105,3~~
100,1
96,1 66
96,800
98,478
100,Oa ~
8
100,3
DEBITS TO INDIVIDUAL ACCOUNTS
(Thousands of dollars)
September September Pctg.chonge
August
Potg.cb"nfi~
1943
1942
over year
1943
over mcn
Abilen•...•.•....... . . .. $ 20,022
14,977
+ 34
15,085
+33
~~r~~~·.·.·.·.
44,123
45,714
- 3
36,781
+20
112,871
54,157
+108
61,660
+ 83
Bonumont. • . .. . . .... .. . .
58,165
37,508
+ 55
51,983
+12
Corpus Christi. ...... .. . .
50,247
37,317
+ 85
43,190
+16
Corsicana....... .... .. ..
7,612
5,262
+ 46
5,713
+33
Dallas.. . .. .. .. ....... ..
550,366
423,796
30
434,548
+27
El Paso.. . .. ............
54,704
46,635
17
47,466
+15
Fort Worth........... ...
218,707
143,688
+ 52
177,706
+23
Galveston . •. .. ... . . .. . . .
52,879
32,439
+ 63
40,470
+31
HOllston........ ....... ..
519,684
374,502
39
452,343
+15
Laredo.. . .. . .. .. .. .. .. ..
11 ,200
8,695
29
10,285
+ 9
26,154
15.514
69
19,925
+31
Lubbock ... . .... ... .. . ..
Monroe, La.. ........ ....
21,027
17,284
22
15,051
+40
2
~t \?hNur 'M' . ..........
24,064
16,698
48
18,715
+t31"
swe, . . ...... . .. .
8,107
6,355
51
6,949
"
Ban Angelo..............
16.883
17,558
_ 4
12,635
34
San Antonio . .... ... . . . ..
145,874
111,024
+ 31
126,075
+16
Shreveport, La.. . .. .. . .. .
84,857
61,313
+ 38
64,467
+32
Texarkana-....... .......
19,410
14,249
+ 36
15,614
+24
Tucson, Ariz. .. .. .. .. .. ..
29,422
22,948
+ 28
24,063
+22
W;ler.... . ......... .. . ..
21,293
13,711
+ 55
17,208
+24
wfcchi\.; 'Falia : :: :: :::: :: :
33,670
26,253
+ 28
23,965
+4~
~
22,357
+ 27
21,570
~
. . ...... . . . . . .
.
t
:j:
:j:
t
Totn~-24citiC8 . .... .. . .. $2,160,478. ~
+38
~
+2\
Includes the figures of two bankslD Texarkana, Arkansns, located in tho Eighth Dlol"e
.
SAVINGS DEPOSITS
b ge In
September 30, 1943
Per~entage poSI.O (rCUl
______________~. savlnga dC 0 .~n____
Number of Number of Amcunt of ' - - - ; st 31,
reporting
.avill8S
savinf!B
Sept. 80,
AU~948
banks
depositors
deJlOSlta
1942
5
Beaumont .............. .
3
10,944 S 4,857,721 +13.9
- 1'1
8
95,869
32,508,035 +25.1
03
Fort Worth ............. .
Galveston ....... ...... ..
4
19,140
12,411,892 +14.4
9
Houston ........ .. .... .
10
78,732
37,157,409 +14.1
- 2'.
Lubbock ... ........... : :
~
915
457,007 +19.0
:: 2:4
Port Arthur .......... .
5,094
3,21 8,3U2 - 1.5
+ 8
San Antonio . ........... .
5
28,309
21, 739,607 +20.2
'5
Shreveport. La . .. . . ... . : :
3
26,624
12,987,870 + 6.9
- .. 0
Waoo ..... . .. . .... . ..•.
3
7,484
4,611.180 +10.6
:: ~ :9
Wiohita Falls ........ . . . :
3
6,34 1
3,509,291 + 3 4
+ 1.2
All ot,her ............ . .. .
59
60,484
28,702,015 + 7,3
~
_ .5
Total . ..... ... . .
107
385,9S0 $187,720,942 +16 .0
Rr~:~: :: ::::::: :::: :::
~
~g~~
I~:m:m t~t8
"+'
t :~
MONTHLY BUSINESS REVIEW
purchase of new Treasury offerings. A record volume of customer deposits was converted into deposits in war loan accounts,
thereby freeing them from legal reserve requirements. This tendency was much more pronounced at reserve city banks than at
country banks and appeared to gain momentum as the drive
progressed. Reserve balances of member banks in the district
Were at a new peak when the drive opened, and although they
~eclined during subsequent weeks, average excess reserves durIng September were about the same as those in August.
Although the changes in reserve balances, demand deposits
and deposits in war loan accounts were of considerable size, the
net effect on the excess reserve position of member banks was
relatively small. When the Third War Loan drive opened the
reserve balances of member banks in the district were at an a11time peak of $540,000,000 :md averaged $510,000,000 during
~he first half of September. Although a large part of the increase
In reserve balances d1.lring the first half of the month was
absorbed by required reserves against an increase of almost
$100,000,000 in demand deposits, excess reserves rose to $115,000,000 during the first half of September. The increase -in deposits in war loan accounts during the first half of the montll
Was moderate. During the second half of September average
reserve balances of member banks were $33,000,000 below those
of the first half. Purchases of new Treasury offerings by bank
CUStomers, however, were in heavy volume during the latter half
of the month and deposits in war loan accounts increased
sharply. Consequently, net demand deposits declined more than
$100,000,000 and there was a proportionate decline in required
reserves. Nevertheless, reserve balances declined more rapidly
than required reserves with the result that excess reserves during
the second half of September were below those of the first half
of the month. For the entire month excess reserves averageq
$110,000,000, or about the same as in August. Deposits in war
loan accounts rose to $370,000,000 at the end of September and
stood at $502,000,000 at the middle of October.
During September and the first part of October total loans of
Weekly reporting member banks in the Eleventh District in~reased a~out $50,000,000. One-third of the increase occurred
1tl commercial, industrial and agricultural loans. Another third
occurred in loans to brokers and dealers in securities and in other
WHOLIllSALIll AND RIllTAIL TRADE STATISTICS
It. tail Trade:
D-rpartmellt . tores:
Dotal 11th Dist ...
FaUn•..... . .. . ...
nort Worth ...... . .
s.,~u~on .. : .. .... ..
Sb ntomo ...... .
Otrl~~Cmi!;. '. '. : : : : :
~tail rurniture:
n~\fl 11th DiBt ... .
F
nil .......... ..
n ort Worth ... .
Sa~,on .. : ....... .
Ind
ntomo ...... .
Aopondont stores:·
N~!°M' ''.'' '' '''''
Okl h I)."CO .. .....
T a omn ...... ...
\Vh °lx .............. .
°
Number
or
reporting
firms
46
Percentngo cbango In:
Net snles
Stockst
Sopt., 1943 rrom
Sept., 1943 rrom
Jnll. 1, to
Sopt.,
August,
~~k ArC~'3t, Sor.~;Oi9~~43 1942
1943
+31
+ 27
+41
+33
+30
+25
+19
+23
+34
70
9
3
7
3
+ 16
+21
+44
120
3n2
"
052
+iil
+1
4
7
5
3
20
+ 43
+17
+23
+26
+21
+28
+23
+26
+22
+1
+t
+15
+18
- 7
+ 1
- 1
- 13
+40
+t
+1
+30
- 3
- 2
- 25
- 28
- 0
+16
+"
+17
osnlo trade:·
Maohinery, cqp't &
Asupplies ........ .
- 23
+28
\)utomobilo supplies
~{UIlB (inol.llquors).
10
+13
+ 13
G Ootrioal supplies. .
3
+35
+ 1
llrooeries. .. . .. . .. .
30
+ U
+ 6
S arc!wnro . . . . .. . . .
12
- 23
- 9
TU~,oal cqp't ......
~
+ 13
+11
nooo & products.
3
+32
- 17
ompilcd by
tstooks at ond Unitod SlntllS Bureau or Consus. ~Chango
or month.
.8
+30
+47
+44
+34
+37
+16
- 2
- 0
- 14
7
+4
+18
+88
+30
+31
+ii
....
+18
- 11
- 14
- 17
+ 4
.
....
+16
....
less thnn ono-llIIlr 01 ono
-
2
. ...
+ 1
1
.. ..
.. ..
llcr oont..
+
INDEXES OF DEPARTMENT S1'ORIll SALES AND STOCKS
(1923-1925 averngc-l00)
Septembor
August
1048
1043
~l:kout sOllsollal adjustment . . . .
251
188
Stocks sonaollnl adjustmont . . .. .. . .
226
244
W (ond or month)
.
I1g
117
wl;~out scnsonal,adjustment . .. . ..
115
seasonal adjustment .. .. . .... . .
108
~l
lee. (daily avorage)
July
1943
163
239
111
121
September
1942
171
154
104
05
3
loans for security trading, principally to facilitate the purchase
of new Treasury offerings during the Third War Loan drive.
The remainder of the increase occurred largely in "all other"
loans, part of which also may have been used for the purchase of
new Treasury securities,
During September and the first week in October total investments of weekly reporting banks showed only minor net
changes, as small declines in holdings of Treasury bills, certificates of indebtedness and Treasury notes were about offset by
increased holdings of Treasury bonds and guaranteed obligations. During the week ended October 13, however, there were
increases in holdings of all types of direct Government obligations, the largest gain occurring in Treasury bond holdings
which rose $13,000,000, The increases during the latter week
represented purchases of previously outstanding issues, since
payment for the new offering of certificates of indebtedness and
2 per cent bonds was not due until October 15.
During September and the first two weeks in October gross
deposits of weekly reporting member banks increased $118,000,000 to a new peak of $1,791,000,000. United States Government deposits increased $176,000,000 and interbank deposits
rose $34,000,000, offset in part by a decline of $94,000,000 in
adjusted demand deposits.
INDUSTRY
The value of construction contract awards in the Eleventh
Federal Reserve District declined 35 per cent in September after
a moderate increase in August. During the period from July
through September, awards in this district aggregated $44,000,000, as compared with $309,000,000 during the same period in
1942. Production and shipments of Portland cement at Texas
mills declined slightly in July and August and were much
smaller than during the same months in 1942, but substantially
above the 1932-1941 average for those months.
Since June, 1940 the major war contracts and allocations in
the United States have amounted to about $165,000,000,000, of
which Texas has received 3 per cent to rank tenth among the
48 sates in the value of war contracts received. The five states
covered in whole or in part by the Eleventh Federal Reserve District have received awards aggregating $8,400,000,000, or
about 5 per cent of the total. Texas accounts for more than 2
per cent of the war supply contracts, almost 6 per cent of the
industrial facility awards and 7 per cent of the non-industrial
facility awards. In the Eleventh District, 80 per cent of the
war supply contracts received have been for the production of
aircraft and aircraft parts and for ship construction and repair.
A wards for construction of industrial facilities for the chemical
and petroleum industries represent slightly more than 50 per
cent of the total value of industrial facility awards placed in this
district, whereas awards for construction of aircraft plants,
shipyards and similar facilities amount to only 12 per cent of
the total.
A notable characteristic of the war activity in the Eleventh
District is its concentration in two areas. North central Texas,
which includes the Dallas and Fort Worth metropolitan areas
and several other important cities, has received war supply contracts aggregating $1,600,000,000, or about 51 per cent of the
value of contracts awarded in this district. North coastal Texas,
including Houston, Beaumont, Galveston and adjacent cities,
has received war supply contracts aggregating $1,360,000,000,
or approximately 43 per cent of the total. Industrial facility
awards have been concentrated in the north coastal area, which
has received awards aggregating $615,000,000, or 48 per cent
of the total. The per capita value of ind.ustrial facility awards
and war supply contracts amounts to $1,000 in the north central area and $1,900 in the north coastal section, as compared
with $575 in the district as a whole, No other section of the district has received war awards aggregating more than $250 per
capita.
MONTHLY BIUSINESS REVIEW
4
Daily average production of crude oil rose to an all-time peak
of 2,019,000 barrels in September, primarily as a result of substantial increases in production in west Texas and south Texas.
Daily average production outside this district also increased and
total production in the United States attained an all-time peak
of 4,33 7,000 barrels daily. Moderate increases in production,in
this district are expected in October and November. The rapIdity with which further expansion of produc.tion c~n be accomplished will depend largely upon the speed WIth which transportation facilities can be provided for west Texas and New Mexico crude oil. Crude oil stocks in the Eleventh District increased
slightly in September and at the end of the month were approximately 3 per cent larger than at the same time in 1942. Stocks
outside this district were reduced, however, and at the end of
September stocks in the United States were approximately 3 per
cent smaller than at the same time last year.
Drilling activity declined i~ the. EI~veI?-th District and in
other areas in September, but 10 thIS dlstnct was 13 per cent
above the level of September, 1942, whereas in other areas it was
approximately 20 per cent below the level o~ that mo~th.
Approximately 12,000 ~ells were compl.eted 10 the Umted
States during the first mne months of this year, as compared
with 16,200 wells completed during the same period in 1942 and
23,600 wells completed during the first nine months of 1941. In
the Eleventh District, 3,300 wells were completed during the
first nine months of this year, or 32 per cent less than during
the comparable period of 1942 and 61 per cent less than during
the same period in 1941. Dry wells represented, furthermore, a
substantially greater portion of well completions during the first
nine months of 1943 than during the comparable periods in the
two preceding years.
MAJOR WAR SUPPLY CONTRACTS AND FACILITY AWARDS"
(Millions o[ dollars)
Supply Contraots through
Faaility Awards through
Grand
August 1043t
May 1948
Total
.supply and
Air.
All
Indus· Non·in·
Faaility
Ships
other
Total
trial dustrial Total Contracts
ara[t
Total United Statest 42,202 21,104 68,890 132,205 15,554 12,028 27,582 150,877
Off Continent and
Unassigned.. ....
Arizona. . . . .. . .. . .
Louisiana.. .. .. .. ..
NewMcxieo.... ...
Oklahoma. ........
732
8153
11,180 1,039
3,141
4,180
15,369
0 ' 11
44
92
125
217
261
320
114
602
336
244
580
1,182
168
0
2
2
4
89
93
95
0
1
131
1,226
213
238
451
167
1,094
1,171
663
3,172
866
827
1,693
4:86~
f~~rii~o ~iat~·. : :: ~:~~~ 1,492 921 5,046 1,511 1,523 3,034 8,080
"By the Army Navy Maritime Commission, Tl'cnsury and Foreign Purchnsing Missions:
tContrncts [or less than $50,000 and all foodstuff contracts exeludod. tlncludes "orr Continent
and Unnssigned."
SOURCE: War Produation Board.
2,3~~
MAJOR WAR SUPPLY CONTRACTS AND ALLOCATIONS
JUNE 194D-AUGUST 1943
(Millions o[ dollars)
War
Dept. o[ Com'rce Federal
Trniping Housing
Works
Total
Military· ,
Agenoy Ageneio.t Ageneiest Reported
RFC
Ageneics CAA
449
1,997
786
165,157
1,910
138
Total United Statcs& 159,877
Off Continent and
48
2
41
641
16,120
19
Unnssigned ...... 15,369
6
2
21
1
293
2
261
Arizona .......... .
16
43
8
9
1,260
2
1,182
Louisiana ..... . ... .
+
4
2
6
109
2
95
New Mexico .......
1
10
9
0
1,709
3
1,677
Oklahoma ....... ..
48
21
84
5,036
7
11
4,865
Texns ....... ·· ·· · .
Total five states.. ..
8,080
20
52
84
42
129
8,407
"Army Navy Maritime Commission Troasu~~ and Foreign Purchnsing MillSions. tTho
Uoited States Offi~e o[ Education and the Natio?Ql !outh ~dminist!a.tion .. :j:Tho l<'edernl ~ub.
Iia Honsing Authorit:( opcrntinjlunder the NatIonal HOUSlDg AUmlDlstratlOn. &Ineludcs 'Off
Oontinent ond UnaSSIgned. +Lcss than $500,000.
SOURCE: War Production Board.
VALUE OF CONSTRUC'l'ION CONTRACTS AWARDED
(Thou8l\nrls of dollars)
August January 1 to Septemoor 30
September Septemoor
1943
1942
1943
1943
1942
Eleventh District--total.. . S 11,571
$101,955
$ 1'7,814 $ 288,SS3 $ 630,868
4,590
10,606
4,85 1
72,889
103,116
Residential. . .... ......
All other . . . . . . . . . . . . . .
6,981
91,340
12,963
215,944
527,752
United Slatcs·-total.. . . .
175,115
723,216
413,791
2,623,839
6,111,765
Residential. ....... . ,. .
54,080
126,708
67,493
673,585
1.340,221
All other. . . . . . . . . . . . . .
121,035
596,508
346,298
1,950,304
4,771,544
.37 states enst o[ the Rocky Mountains.
SOURCE: F. W. Dodge Corporation.
Consumption of cotton at Texas textile mills declined 7 per
cent in September and was 16 per cent smaller than the record
for the month established last year. Consumption of cotton at
United States textile mills increased slightly in September bu e
was at the lowest level for the month since 1940. Stocks of cotton increased markedly, reflecting record ginnings during ~hc
monllh. At the end of September, cotton stocks in consumll1g
establishments in the United States were at an all-time high fad
that date of 1,930,000 bales and stocks in public storage an
compresses were at the highest level for that date since 194 0,
The average 10-spot market price of 15 / 16-inch middling cocton fluctuated in a very narrow range during September and the
first half of October and on October 15 was 20.38 centS per
pound as compared with 18.91 cents per pound a year earlier.
Cottonseed receipts and crushings at Texas mills during S~p
tember were the largest for that month since 1939. ProductIOn
of oil, cake and meal and linters was somewhat larger than during September, 1942 and shipments of cake, meal and hull~ We!d
markedly greater. At the end of September, stocks of cotton See
cake and meal in Texas mills were the smallest for that dace
since 1924. Cottonseed on hand at the mills was, however, at
the highest level for tbat date since 1938.
BUILDING PERMITS
Perceotngl
Pereentngo change
valuation from
Jao.1 to Sept. 30,1943 o~nnl'~n
va un 49
Valuation (rom 19
Valuation Sept.,1942 Aug.,1943 No.
5 -85
$
3,588
- 68
200 $ 171,40
17
- 92
44,975
424
520,448 -82
+ 31
+284
64,653
273,656 - 8
781
+279
+130
25,019
- 41
957
2,168,988
+ 4
147,265
962
2,863,174
50
+164
+ 76
359,701
2,819,767 -81
4,188
+ 88
- 52
27,807
434
- 19
366,303 ~5
- 38
750,035
2,891
5,369,050
61
+448
+11
70,667
765,916 -38
+205
685
+ 9
673,520
0,768,400 ~1
1,610
+091
- 18
27,283
-'24
185,065
29
685
+ 96
19,348
+ 52 .
425
235,575 ~4
+128
296,402
2,159,909
8q
5,916
+ 63
+ 10
33,302
290,052 ' -31
751
- 53
- 62
37,307
037,549 -70
- 11
450
- 50
10,817
153,425 : : 198
- 67
-54
_53
$2,598,949
$25,748.682
21,563
- 13
+153
September, 1943
Abilene ..........
Amarlllo .... . ....
Austin ...........
Beaumont .. . ....•
Coreus Christi . ...
Dol as ...... . ....
El Poeo . .........
Fort Worth .......
Galveston ........
Houston ..... . ....
Lubbock .........
Port Arthur ... . ..
San Antonio ......
Bhrcveport, Ln ....
Waco . ... ........
Wichita Falla .••..
No.
16
68
104
106
110
504
43
404
110
289
98
68
764
110
41
37
::09
-----
Total. ..... 2,872
CRUDE OIL PRODUCTION-(Bnrrels)
. dailY
September, 1943
Increase or decre.~e "} 0111
l\verage product~
Total
Daily nvg.
1943
production
production
Sept., 1912
AUg+us t '7,240
North Texa. ....... . .... .. .. .
7,327,200
244,240
+ 22,165
00 404
West TeXlls..................
9,867,200
328,907
+126,199
+
'701
Enst 1)exo... .. .. . .. . .. .. . .. . 15 305 700
510 190
+ 84484
+ 8'018
South Texns.................
7:852:400
201:747
+100:897
+ 2~'081
Texas Coastnl................
14,517,500
483,910
+172,928..2:--:-.::
N th L .'1;'olal Texas. ......
or
ou,.,ana..............
Ne,. Mexico... .. ............
54,870,000
2,457,950
3,233,200
1,829,000
81,932
107,773
+506,073
- 16,391
+ 10,601
Total District. . . . . . 60,561,150
2,018.705
~
BOURCE: Estimated Crom Amoricnn Petroleum Institut. weekly report•.
+!1~,g~
-+ 3:101
~
+116,17
0
___
COTTONSEED AND COTTONSEED PRODUCTS
- - - - Texa.
United States 30
August 1 to Selltember 30
August 1 to SeQLtc~~~SCIl
'rhis season
L:I8t season
ThIS sellSon
as 55
Cottonseed received at mills
(tons) ..... . .............. .
400,871
324,499
1,549,263
1'~~H22
Cottonseed crushed (tons) . . . . .
171,955
165,581
638,177
'
Cottonseed on hand Sept. 30
716,00 1
(tons) .................... .
273,585
194,277
1,001,422
Produetion o[ products:
100,852
Crude oil (thou88nd lbs.) ... .
192,871
48,735
48,155
207,205
Cake and meal (tons) ... . .. .
288,570
79,378
72,720
153'~~1
Hulls (tons) . . ............ .
151,939
40,509
41,375
181.
Linters (running bales) ..... .
52,220
190,036
47,945
Stooks on hand Sept. 30:
56,40 2
Crude oil (thouSllnd lb•. ). .. .
14,609
53,003
13,414
J44,~~~
17,356
Cake and meal (tons).......
48,512
40,SS9
63,SS
Hulls (tons) . . . .. . .. .. .. .. .
12 064
31,024
20,265
07,9
Lint.crs (running bales). . . . . .
55;543
178,711
31,500
SOURCE: United States Bureau o[ Cellsus.
DOMESTIC CONSUMP'l'ION AND STOCKS OF COTTON-(Bal es)
be'SO
Sept.
Sept.
August August 1 to Sol~:':o.sOn
Consumtion at:
1943
1942
1943
This season
41816
Texas mills ......... . . '.
18,294
21,669
19691
37,985
384'647
Unitsd States mill •... '"
872,109
959,732
842;260
1,714,369
I, '
U.S. stoeks-cnd of month'
In eonsuming cstabmen~. 1930208 1786 153
..'
Public stg. &: compresses .. 10',432',611 9,713,415
' ,
..'
MONTHLY BUSINESS REVIEW
THE OWNERSffiP OF BANK DEPOSITS
Demand deposits of banks have increased at an unprecedented
rate since the outbreak of the war. These increases have occurred
in all parts of the nation, but the rate of growth has varied between one section and another. In this district the deposits of
member banks at the end of June, 1943 were more than twice as
large as four years earlier. Heretofore, little has been known
about the distribution of these deposits among various groups.
In an effort to throw light on this important question, the Federal Reserve Bank of Dallas, in cooperation with the Board of
Governors of the Federal Reserve System, conducted a survey of
the distribution of demand deposits of individuals, partnerships
and corporations at a selected group of ·banks in this district at
the end of July. The generOtls cooperation on the part of banks
which were requested to participate in the survey produced
results which are representative of the distribution of deposits at
all member banks. Reports were received from each of our 33weekly reporting member banks and from 77 other member
banks in the district. The banks which participated in the surVey hold more than half of all such deposits at member banks in
the district. Reports were received from virtually all size
groups of banks and the banks were located in more than 80
cities and towns throughout the district. An analysis of the
results of the survey on a national basis appeared in the October,
1943 issue of the Federal Reserve Bulletin. A sununary of the
results of the survey in the Eleventh District is presented below.
5
deposits between $3,000 and $10,000. Consequently, more than
half of the number of accounts in the $3,000 to $10,000 range
at smaller banks belonged to individuals and farmers.
Retail and wholesale trade and dealers in commodities accounted for the next largest group of deposits. This group
accounted for slightly less than one-fourth of all deposits
between $3,000 and $100,000 and 15 per cent of the deposits
above $100,000.
Large deposits of public utilities, transportation and communication industries account for about 12 per cent of all deposits
in excess of $10,000. Financial businesses, including insurance
companies, trust funds of banks, loan and real estate businesses
are next in importance and large deposits of these firms account
for more than 11 per cent of all such deposits. Large deposits of
nonprofit associations, clubs, and churches are relatively unimportant. These deposits are located principally in the larger
cities of tlle district, and account for less than 3 per cent of all
large deposits.
The combined results of the survey are indicated in the following tables. Table I is a summary of reports received from the
smaller banks, while Table II is a summary of the reports
obtained from the 33 weekly reporting banks located in the
larger citias of the district.
TABLE 1
The survey indicates clearly that a large proportion of the
deposits in the district are concentrated in a relatively few large
accounts. Although accounts above $100,000 each accounted
for only a fraction of l'per cent of the number of accounts, they
constituted about 40 pel' cent of the dollar amount of all demand
deposits at the 110 banks participating in the survey. Deposit
accounts above $10,000 each constituted less than 3 per cent of
the number of accounts but about 70 per cent of the dollar
amount of deposits at cooperating banks. The percentage of
tOtal deposits in large accounts was much greater at the larger
banks than at the smaller banks in the district. In dollar amount
by far the most important group of large deposits (those above
$100,000) belong to manufacturing and mining concerns, follOwed in the order of their importance by public utilities, retail
and wholesale trade, personal accounts, including those of
farmers, and insurance companies.
. Manufacturing and mining concerns account for a substantial part of large deposits in the district but for only a minor
part of the small deposit accounts. At banks participating in the
Survey these concerns owned approximately one-third of all
deposit accounts of more than $100,000 each and about onefOUrth of all deposit accounts above $10,000 each. At the
smaller banks, however, manufacturing and mining concerns
accounted for less than 3 per cent of the deposits in the $3,000
to $10,000 classification.
Personal accounts, including those of farmers, ranked second
~lbong large deposit groups. Individual deposits, although large
In the aggregate, were more widely distributed than those of
other groups. At larger banks individuals owned only slightly
lll.Ore than 10 per cent of the deposits in excess of $100,000 but
OWned about one-third of the deposits in the $10,000 to $100,000 classification and at smaller banks owned a greater share of
tOtal deposits than at larger banks. At the smaller banks farmers
aCcOunted for 18 per cent of the deposits above $10,000 and 21
P~r cent of the deposits between $3,000 and $10,000 each. Indi"Iduals other than farmers accounted for an additional 26 per
Cent of deposits in excess of $10,000 and 40 per cent of the
DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS AND CORPORATIONS
AT 77 BANKS HAVI NG DEMAND DEPOSITS OF LESS THAN $5,000,000
July 31, 1043- (Thousands of dollars)
Deposit'Aecounts between
Deposit Accou!,ts
$3,000 and SIO,OOO
over $10,000
Oloss of Account
I. Manufacturing and mining ...... . ..
2. Public util!ties.. transportation and
commuDiootlOns... .. . ..... .. . . ..
3. Retail and wholesale trade and denI-
4.
5.
6.
7.
ers in commodities .. . ... .. . .. ....
All other nonflnanolal business, in. cludi.lIt con.struction and services . .
FmancJa business . . . .. . . ..........
Non profit associatioas, clubs, ehurchcs,
etc .... .... ... . . . . . . . . . . .... ...
Pcrsonal (including farmers):
n. Farmers .. .. ... . . . .. . .. . .. . ....
b. Othcr personal necounts .. . .. . ...
Total- all necounts classified as
to ownersbip ....... . . .... . . . .
Gr.nd Tol.nl- nll demand deposits
of individuals, partnerships and
corporntions .. ... ... ... . .....
Number of DollnrAm't Number of DollnrAm't
accounts
of deposits
nooounts
of deposits
00
567
85
2,667
129
660
33
857
1,013
5,425
302
5,870
180
141
018
743
81
46
3,401
1,078
70
385
16
384
027
1,835
4,580
8,828
180
205
4,445
6,505
4,403
22,106
Number
1,038
Amount
25,207
J58,563
95,301
TABLE 2
DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSIDPS AND CORPORATIONS
A'r 33 WEEKLY REPORTING MEMBElt BANKS
July 31, 1043- (Thous.nds of doll.rs)
I.
2.
3.
4.
5.
6.
7.
Deposit Accounts between
Deposit AccounIs
$10,000 and $100,000
over $100,000
Clnss of Account
Manufactu ring and mining:
Number of DollarAm't Number of Dollar Am't
a. Mcl.nl mining and metal mauuf. c- accounia
of dcposits
accollnts
of deposits
tures, including machinery and
transportatioll equipmcnt .. . . .. . .
268
10,469
106
41,230
b. AU other manufacturing and mining ... ..... . . ..... . ...... .. . ..
981
32,076
244
93,004
l' ublic utilities, transportation and
communiootlOns ... .. . . . . . .. .. ..
849
12,434
173
70,959
ll.ct.i1 and wholesale trade and de.le....
in commodities ... . .. .. . . . . .. .. ..
2,194
65,376
282
63,827
All other nonfinancIal businCS8, including constnlction nnd services ... ...
1,116
32,231
154
40,168
Financial business :
n. Insuranco companies . . . . ........
437
13,764
86
30,530
b. Trust funds in banks ....... . .. .
64
1,827
17
7,119
o. All other- inoluding investment,
loan, .nd real estute business, etc.
606
19,061
67
12,085
Nonprofit nasoointions, clubs, ohurohes,
etc ............... . .. .. . . ..... .
326
9,400
26
9,753
l'ersonal (including farmers) .. .. . . ..
4,007
92,990
182
45,127
Totnl- aU accounts classified "s
to ownership .. .. . .......... . .
10,438
290,528
1,327
413,811
Grand Totnl-nUdemand deposits
Number
Amount
of individuals, partnerships nnd
corporations .. ..... . . .... . . ..
383,016
089,438
J40NTH~Y
6
BUSINESS REVIEW
THIRD WAR LOAN DRIVE
Final tabulations on the Third War Loan drive indicate that
aggregate sales approached $19,000,000,000, thereby exceeding
the $15,000,000,000 goal by $4,000,000,000. The record volume of sales during the September drive was more than twice as
large as the amount purchased by nonbank investors during the
December, 1942 drive and exceeded nonbank purchases during
the April, 1943 drive by almost 50 per cent. Subscriptions from
individuals, partnerships and personal trust accounts exceeded
their $5,000,000,000 quota by 8 per cent, while subscriptions
from corporations, associations and other investors exceeded
their $10,000,000,000 quota by 29 per cent. Sales of Series E
bonds during the drive amounted to slightly less than $2,500,000,000 as compared with sales of $726,000,000 during December, 1942 and $1,007,000,000 during April, 1943. Thus, the
amount sold during the Third War Loan drive was substantially
in excess of the amount sold during any other comparable period
since they were first offered in May, 1941. The following table
shows, on a national basis, sales of the various issues during the
drive, classified by type of investor.
FINAL TABULATION OF SUBSCRIPTIONS TO THIRD WAR LOAN DRIVE IN
THE UNITED STATES
By issues and by classes of investors-(Millions of dollars)
Insurance
Other
companies
corporations,
and mutual
associations
Individuals ..vings banks and investors
18811e
Total
2,472
2,472
E bonds ..... . ... . ......... ···· · · ..
565
5
F and G bonds ... .. . . ... . .... . .. . . .
261
831
103
2
2,288
S,vings notes . .. ...... .. ...... .... .
2,483
366
255
3,400
4,120
Certificates of indebtedness . . .... ... .
1,220
1,026
2,114
5,260
2% bonds . ... .......... · · ·· .. .. · · ·
561
1,039
1,277
2~ % bonds ...... . .... . . · .... . .. ·.
3,777
Total. . . . . . . . . . . . . . . . . . .
5,377
4,127
9,439
18,043
In Texas total sales during the drive amounted to $520,000,000, of which $262,000,000 were purchased by individuals and
$258,000,000 by corporations, associations and other nonbank
investors. Texas exceeded its combined goal by 24 per cent and
its quota for sales to individuals by 30 per cent. Only seven other
states in the nation exceeded their quota for sales to individuals
by a larger percentage than Texas. Sales of Series E bonds in
Texas during the drive amounted to $115,000,000. Total sales
in Arizona, Louisiana, New Mexico and Oklahoma, which are
partly in the Eleventh District, likewise exceeded their goals by
substantial margins. Aggregate sales of the five states, which are
wholly or partially in the Eleventh District, amounted to $842,000,000, or 22 per cent above their goal. The following table
shows sales of the various Treasury issues during the drive in
Texas classified by type of investor.
FINAL TABUI,ATION OF SUBSCRIPTIO NS TO THIRD WAR LOAN DRIVE
IN TEXAS
By issues and by classes of investors-(Millions of dollars)
Other
.
corporations,
Insuranoo
associations
Totnl
Isslle
Individuals llompanics· and in vestors
116
E bonds ........ .. ...... . .. ..
115
36
1l
n~d G bonds .......... . ..... ..
24
1
101
nVIDRB notes . ..... . . . . ...... , .. •
86
14
1
87
~ertificates of indebtedness . ... . ... : :
62
10
5
136
% bonds . .. ..... . ..... .
40
76
Il
46
2~% bonds ........ . .. ..
12
15
10
§
262
37
Total. ... .. .......... .. .
°Thero aro no savings banks in Texas.
Noto: Figures are rounded and do not necessarily add to total•.
221
-520
Although banks were not permitted to participate directly ill
the purchase of new Treasury offerings during the drive, the
Treasury made a cash offering to banks shortly after the close of
the drive. The offering cOl1sisted of an issue of 01 per cent certificates of indebtedness da.ted October 15, 1943 and maturing
October 1, 1944 and an offering of 2 per cent Treasury bonds
of 1951-1953. It was announced in advance that the Treasury
would limit allotmeilts to approximately $1,500,000,000 o~
each of the issues. Total subscriptions amounted to appro)(Ji
mately $5,500,000,000 on each issue against which allotmentS 0
approximately $1,600,000,000 each were made. In the Eleventh
District subscriptions to' the 2 per cent bonds amounted to
$156,000,000 against which allotments of $54,000,000 were
made, while subscriptions in the district to the % per cent certificates of indebtedness amounted to $131,000,000 against
which allotments of $47,000,000 were made.
At the same time the Treasury made an exchange offering for
an issue of 3 Y4 pel' cent bonds of October 15, 1943 -1945 outstanding in the amount of $1,400 , 000 , 000 , and an issue of 18
1
per cent certificates of indebtedness maturing November '
1943 outstanding in the amount of $2 ,000,000,000. Most of th;
3 Y4 per cent bonds were exchanged for 2 per cent bonds 0
1951-1953, although nonbank investors exercised the privilege
t
of exchanging a small part of their holdings for 2 Y:z per ceJl
bonds of 1964-1969. Virtually all of the maturing issue of certificates of indebtedness were exchanged for a similar amount
of the new issue of % per cent certificates of indebtedness, dated
October 15, 1943 and maturing October 1, 1~44.
Thus, sales of Treasury securities to nonbank investors duri~1
the Third War Loan drive and the cash offering to commerCIa
banks immediately following the drive prOVided the TreasurY
with $22,000,000,000 of new money.
MONTHLY BUSINESS REVIEW
NOVEMBER 1, 1943
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Bo..rd of Governors of the Feder..l Reser.. S7atem)
DEPARTMENT STORE SALES AND STOCKS
;~o~'r"'-'_~_~-~u::.=_",:.:::; :OUO!'.!':' ::,";::'''"••",,!:.,,.;.::,,:;.:'_=-_,-_-'';''.
' W "",H' :
"
,,
:ao
160 t--~---!---l.---I--- I---+II----I 100
"0 r--_+--_1_--I--+-/\
- - ! - --loo
.0
_-'-_...... 40
1
937
1938
1939
1940
1941
1942
1943
Fcderal Reserve indexes. Monthly figures, latest shown
arc for September, 1943.
=r r
......
WHOLESALE PRICES
- ''' ~
1---+---1-_.-Ito
I-- -+---+---+-
140
I~O
110
or.
---.-...-
130
/.\~ 120
J(
,.ltMftOCUC'T I .;4
I'
110
1-,..· ·/ I
r---._
100
1
00
onll""
'0
eo
90
·1--- l - - - 1 f - - - l .0
)0
~J-U~-_1_--.+------ 70
'"
'0
'.
.0
.0
1938
193 9
1940
1941
194~
1 2.
94
llycau of Labor Statistics' indexes. Weekly figures,
atCSt shown are for week ending October 16, 1943.
':VERNtf,ENT SECURIl:Y HOLDINGS OF BANKS IN LEADING OITIES
2. -'" IOUUI
2°r-~
llU.lOlli .,
__ _ _
~
~
""'24
___ __ ____
~
~
~.0
"r----~---_1_---~--_+-~~~16
~
12 r-___~---~----~--~~---~,.
:~-=. ~- . =(-.~
~------t------.-,!.r~~.""
o
-1._
19~9
1
940
- - l ._ _ _" . _
1 1
94
1
942
0
1
043
MEMBER BANKS IN LEADING CITIES
~-.~----,
f
'0 --___-!-_ _ _I -_ _-!-_ _ _-I-_ _--' 40
-----+---·~----~----~~j~\~ 32
,1-----= 24
I,
1.)
t.:...-+----J I.
193 9
1940
194 1
1942
There were increases in output in the iron and steel and transportation eq uipment industries while
activity in other durable goods industries showed little change or declined slightly. Open hearth and
Bessemer steel production exceeded its previous peak level, reached in March of this year, and output
of pig iron likewise established a new record. In the machinery industry as a whole activity was maintained at the level of recent months although there was some further curtailment of output of machine
tools and machine tool accessories.
Total output of nondurable manufactures continued at the August level. Cotton consumption,
which had been declining since May, rose 6 per cent from August to September, but was 9 per cent
below the high level of a year ago. Shoe production was mai n rained at the level of recent months and
was slightly larger than a year ago. The output of manufactured food products rose seasonally.
Petroleum refilling continued to rise in September and was at a rate about double the 19 3S -39
average. The Board's index of this industry is substantially higher than the old index hecause greater
weight is given to aviation gasoline and other special war products. Output in the chemical industry as
a whole declined in August, as some further expansion in industrial chemicals was more than offset in
the total by reductions elsewhere, reflecting readjustment of the war program. Newsprint consumption
rose less than is usual at this season, in the face of increasing supply difficulties, and a further 5 per cent
cut in permitted consumption of newsprint was ordered, beginning October 1.
Crude petroleum. production continued to rise in September, reflecting further improvement of
transportation facilities for petroleum products. Output of crude petroleum in August and September
exceeded the earlier peak levels reached in December 1941 and January 1942. Coal production continued
at a high level.
In September the value of construction COntracts awarded in 37 Eastern states was at about the
same low level as in July, according to reports of the F. \'(T. Dodge Corporation, and was considerably
smaller than in August when there was a temporary increase because ohe exceptionally large contract
was pine cd in that month.
DISTRIBUTION
Department store sales increased less than seasonally in September, following an unusually large
volume of sales in July and August, and the Board's seasonally adjusted index declined from 142 to
131. During the first half of October sales showed a gain over September although usually there is
some decline at this season.
Railroad freight tramc in September and the first part of October was maintained at the high level
of previous months. Coal shipmen ts exceeded the record movement of last July and loadings of grain
and livestock were 10 per cent higher than a year ago.
COMMODITY PRICES
Il%Cl!'dcs guaranteed securities. Data not availabl~
PtJOr to 17ebruary 8, 1939; certificates first reported
On Apri115, 1942. Wednesday figures, latest shown
are for October 13, 1943.
2,
INDUSTRIAL PRODUCTION
Physical volume of industrial production as measured by the Board's seasonally adjusted index, as
recently revised, was 243 per cent of the 1935 -39 average in September, compared with 242 in AUb'USt
and 239 in July.
14° r--_+---I
---I--+--t-
'0
Industrial activity showed little change in September and in th~ first hal{ of October. Distribution
of commodities continued in large volume and prices remained steady.
1943
Clll. nd deposits (adjusted) exclude U. S. Govern~.nt and interbank deposits and collection items.
isovernment securities include direct and guaranteed
Osu cs . Wednesday figures, latest shown are for
Ct. 13, 1943.
Prices of grains advanced from the middle of September to the middle of October. Livestock
prices were slightly lower, reflecting partly the establishment of Federal maximum prices for live hogs
and sharply increased marketings of cattle. Wholesale prices of most other commodities continued to
show little change.
AGRICULTURE
Crop prospects showed little change during September, according to offic ial repores. There was a
further small improvement in prospects for the corn and potato crops, while the previous forecast for
cotton production was lowered slightly. Aggregate crop production is expected to be 7 pe.r cent below
the peak volume of last season but higher than in any other previous year.
BANK CREDIT
Du.ing the five weeks ending October 13, Government security holdings at reporting ba nks in
101 leading cities increased by about 2.5 billion dollars reflecting substa nti al open-market purchases
during the Drive, and also, some purchases of bills On subscription from the Treasury. Loans showed
a net increase of 2.2 billion dollars over the same period. Over two-thirds of the total amOunt represented loans to brokers, dealers, and customers for purchasing or carrying secur ities; in the last week
of the period there were some declines, however, as repayments were made on the liquidation of the
securities. Commercial loans, which have been increasing stead ily since June, rose further by 540 million over the five weeks.
Holdings of Government securi ties by the Federal Reserve Systom showed little change from the
end of September to the third statement date of October, but there were some shifts among the kinds
of securities held. Treasury bills held under option declined by 200 ",illion dollars between September
30 and October 20, while holdings of certificates of indebtedness and of Treasury bills outside of the
option accounts increased by about 200 million. Total holdings of Unired States Government securities
by the R eserve System on October 20 were 8.9 billion dollars.
