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MONTH LY BUSINESS REVIEW
of the
FEDERAL
RESERVE
BANK
pf Dallas
=
~====================================================
Number 8
Dallas, Texas, October 1, 1944
Volume 29
======================================================
DISTRICT SUMMARY
General rains throughout the Eleventh District late in August
an~ early in September benefited late crops, provided needed
mOIsture for fall plowing and seeding operations, revived livestock ranges and replenished stockwater supplies. Sales at department stores increased seasonally from July to August and w.ere
about one-fourth larger than in August, 1943. ConstructlOn
Contracts awarded in this district during August were subitantially larger than in the preceding month but were sharply
OWer .than a year ago. Daily average production of crude petro,leum In this district during August reached a new peak for the
fourth consecutive month at a level approximately 20 per cent
above that a year ago. On the basis of production allowables
authorized by the Texas Railroad Commission, daily average
OUtrut will rise further in September, but will decline slightly
~urlng October. Deposits of weekly reporting member banks
lUcr~ased further between August 9 and September 13, but loans
decllned slightly during the same period.
BUSINESS
The dollar volume of sales at department stores during August
Was 24 per cent above that of a year ago and 22 per cent g~eater
th~n that of the preceding month. On a daily average baSIS the
adjUsted index was maintained at a high le...el of 250 per cent o.f
the 1935-1939 average. During the first eight months of this
year the dollar volume exceeded that of the comparable period
a year ago by 16 per cent. For the same period increases in dollar
~al~s by city groups ranged from 11 per cent in San Antonio to
hIgh of 22 per cent in Dallas. Furthermore, sales reports from
weekly reporting firms depict a continuation of this high dollar
bolume inasmuch as sales during the two weeks ended Septemer 16 of this year were 21 per cent higher than those for the
comparable period last year.
.ouring August the dollar volume of sales of women's and
~sses' ready-to-wear and accessories, which represented half of
he tota.l dollar sales reported, was 32 per cent higher than a year
ago WhIle stocks remained practically at the same level as last
year. Sales of piece goods increased 31 per cent over last year as
Stocks decreased only slightly. Dollar sales of men's and boys'
:ea r increased 22 per cent over last year, whereas stocks declined
pproximately 7 per cent over a year ago.
. The ratio of cash sales to total sales decreased from the wartIme high of 57 per cent in July to 53 per cent in August and was
the first decrease in this ratio since March this year. However,
~ollections on regular accounts during August we~e ~4 per cent
f the regular accounts outstanding at the begmmng of the
~onth representing a slight increase in this ratio from the precedlng month. Collections on instalment accounts represented 36
per cent of instalment accounts outstanding at the beginning of
the month compared with a similar ratio of 31 per cent in July
and 29 per cent in August of last year.
Dollar sales at reporting furniture firms during August inCreased 8 per cent over the preceding month and 7 per cent over
a year ago. On the other hand, stocks which increased 6 per cent
OVer last month were approximately 8 per cent lorwer than last
)'ear.
According to Dun and Bradstreet, Incorporated, there was
one business failure in this district in August. This is the first
business failure reported in this district since December 1943
and compares favorably with the first eight months of l;st yea;
during which period 11 business failures had been reported.
AGRICULTURE
The general over-all outlook for agriculture in the Eleventh
Federal Reserve District has greatly improved during the past
few weeks, due to the more favorable weather and moisture
conditions. The hot, dry weather during July and the first three
weeks of August had caused a general decline in late crop prospec.ts and a rapid deterioration in ranl?e feeds and pasturage.
Senous shortages of stock water were be10g experienced in some
of the. western .areas and irrigation .water supplies were running
short 10 the ~o' Grande Valley. Smce late August, rains have
fallen over vrrtually all of the district, ranging from light
showers in some areas to torrential rains in others; the notable
exceptions being in Arizona and parts of New Mexico where
ranges were still reported dry and feed short in some sections.
These general rains materially improved prospects for all late
crops, especially cotton, sweet potatoes, peanuts, late feed crops
and improved range feeds and pasturage over a large area. Th;
improved moisture conditions have also aided in the preparation
of the soil for fall seeding operation. Farmers have made good
progress with the seeding of winter wheat.
The rains came too late to benefit cotton in the eastern and
coastal counties of Texas, but in other sections of the district
:where cotton is late~ t~an ~sual, ~hedding an? premature open10g were checked. Plckmg JS neanng completlOn in South Texas
and in southern counties of South Central Texas, but rains have
delayed remnant harvest. Cotton picking is under way in all
other districts, but due to the late start, the volume ginned to
date is relatively small. The cotton crop, as a whole, is much
later than usual, and will be subjected to a longer than usual
period of fall weather and related influences. Reports indicate
that farmers in many sections are experiencing difficulty in
ohtaining labor to gather the crop.
The September 1 report of the Department of Agriculture
estimated the United States cotton crop at 11,483,000 bales
which represents an increase of 461,000 bales above the August
estimate. The per acre yield is estimated at 273.4 pounds on
20,164,000 acres r~maining for harvest, or slightly larger than
the previous record yield of 272.4 pounds per acre produced in
1942. The forecast for Texas remained at 2,450,000 bales, which
is 373,000 bales smaller than the crop produced in 1943. The
abandonment of cotton acreage in Texas from all causes is
estimated at 2.6 per cent of the acreage in cultivation on July 1,
leaving a total oi 7,13 5,000 acres for harvest. On the acreage
remaining for harvest, the yield was forecast at 165 pounds per
acre, as compared with 174 pounds per acre in 1943, and an
average of 162 pounds for the ten-year period (1933-1942).
i
Late grain sorghums were materially improved by rains and
the September 1 production estimate for Texas of 84,708 ,000
bushels compares with 71,817,000 bushels produced last year.
The yield per acre is now indicated at 18.0 bushels, as compared
with 16.5 bushels last year and the ten·yooy average of 14.6
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
bushels. The damage caused to the Texas peanut crop by the
earlier hot, dry weather was more than offset by rains in late
August. The September 1 estimate of 323,000,000 pounds is
moderately larger than the 1943 production of 298,980,000
pounds despite the much 'smaller acreage. The per acre yield of
420 pounds this year, while nearly one-third larger than in 1943,
is well below the ten-year average of 470 pounds. Production of
all tame hay in Texas was estimated on September 1 at 1,405,000
tons, as compared with 1,469,000 tons for 1943 and the ten-year
average of 1,021,000 tons. The improved moisture conditions
increased the prospects for both Irish potatoes and sweet potatoes
in Texas, but the September 1 estimates of 5,016,000 bushels
and 4,420,000 bushels, respectively, were approximately 20 per
cent lower than last year's harvest.
Due to earlier lack of water, rice prospects declined further
in August with production now indicated at 17,640,000 bushels,
as compared with 20,196,000 bushels in 1943. Broomcorn pmduction is estimated at 8,900 tons, which is over three times the
1943 production of 2,700 tons and about double the ten-year
average production. The prospective pecan crop on September 1
indicated a production of 43,500,000 pounds, which is only
sligptly below the record crop of 1935.
The continued hot, dry weather and limited irrigation water
supplies in the first half of August adversely affected the grapefruit and orange groves, but trees and fruit were greatly benefited by generous rains during the latter part of the month. The
rains broke the severe drouth in South Texas, relieving the serious shortage of irrigation water which existed at mid-August,
and greatly improving soil conditions for transplanting crops in
the Rio Grande Valley where field work had been delayed. The
favorable conditions may stimulate an increase in acreages of
beets, carrots, cabbage and onions as seed beds in both irrigated
and non-irrigated areas are reported in excellent condition.
Range feeds and pasturage which had deteriorated seriously
during the hot, dry weather, responded rapidly to the recent rains
and the outlook for fall grazing is generally good except in. a
few localities where moisture is still deficient. Livestock which
had suffered during the drouth are beginning to pick up from
the greatly improved range feeds and pastures. Stock water
supplies have been replenished in all except a few local areas
and moisture is adequate over most of the district to sustain the
growth Of grass and other feeds. Seeding of wheat and other
small grains is under way in North and Northwest Texas and
there are some fields of volunteer growths which will provide
winter grazing.
During August, receipts of sheep and hogs at the Fort Worth
and San Antonio markets declined, while those of cattle and
calves rose to the highest level of the year. Since April, the
marketings of sheep have been exceptionally heavy and while
August receipts were sharply lower than in August last year,
they were much larger than those in that month of any other
year. Total receipts for the first eight months of 1944 were
47 per cent larger than the heavy movement in that period last
year. Receipts of hogs have shown a downward movement since
the first of the year, although the total movement thus far has
exceeded that of last year by 21 per cent. The large movement
of cattle and calves during the past four months has more than
offset the small movement during the early months of the year,
while the cumulative receipts for the eight months of 1944 were
about 25 pe'r cent above those last year.
The 1944 Texas wool clip is forecast by the Department of
Agriculture . at 8 ~,OOO,OOO poun4s, \yhich exceeds the 1943
wool clip by ~87,OOO .. pounds an~.i~ 11 p~r ce,nt larger ~han the
average of 72,662,000 pounds for the ten years (1933-1942).
The Texas clip represents more than one-fifth of the total wool
clip in the United States.
Despite adverse weather conditions, labor shortages and transportation difficulties, income from agriculture continues co
show gains. In June, cash income from agriculture in TeJ(aS
amounted to approximately $95,000,000, an increase of slighclY
more than $11,000,000 over the previous mOllth and was oyer
$28,000,000 more than in June, 1943. The aggrega te cash farm
income in Texas for the first six months of 1944 was $48 5,CASH FARM INCOME-(Thousands of dollars)
~- Juno 1944
Total rccoipt~----~Receipts from~ June
Juno
Jan. 1 to Juno 3O
Crops Livestock·
1944
1943
1944
194 B
Ariz.o~a.................
7,042
3,902
11,004
8,853
74,376
73,6~~
ifc~sM~~ico::::::::::::: 4,~~g
Okl.homa .. ' " ., . .•.... .
Texas.. ... . .. ...... .....
23,146
40,035
W5
24,757
53,370
w:
47,903
95,411
U~~
26,049
07,587
~~:m
109,408
485,030
Totsl........... 75,050
92,808
108,524
114,184
835,847
°Includcs receipts from the salo of Iivestook and livestock produots.
SOURCE: United States Department of Agriculturo.
3Nsl
142,~~
401,
m.OO9
LIVESTOCK RECEIPTS- (N umber)
~--Fort Worth---~-- San Antonio - -I J
August
August
July
Au~ust
August
u4~
1944
1943
1944
]944
1943
10 •
97,106
07,079
28,181
21,270
27,700
Cattle .................. . 110,853
Calves ................. . 52,997
40,108
37,609
20,575
20,952
23, 584
Ho~s ................... .
68,127
77,545
74,860
14,932
12,185
12,83
Shccp .................. . 209.754
406,530
361,703
57,076
03,283
68, 82
l
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundred weight)
~Fort Worth---~-- San Antonio - -I J
August
August
July
August
August
OU4~
1944
1943
1944
1944
1943
1
Beof .teers ............. . $14.05
S13.75
$15.50
S14.00
$12.90
$13. 75
Stooker steers ........... . 11.50
13 .00
11.00
.i:foo .is:iJO
13.50
Heifers and yearlings .... . 14.50
15 .50
13 .50
10. 40
Butcher cows ........... . 12 .00
11 .50
11.25
11.50
11.00
13.00
Calve.. ..... ........... . 13.50
13 .00
13.25
13.00
12.05
25
14.
Hogs .................. ..
14 .55
14.35
14.55
14.25
14.25
12.00
Lambs ................ .. 14.00
13.60
14.00
12.00
COTTONSEED AND COTTONSEED PRODUCTS
----Texns
United States-August 1 to August 31
August 1 to August 31 n
This season
Last seasoll
This seasoll
Last seaso
Cottonseed recoived at mills
(tons) ................... ..
80.100
102,808
162,772
394,4021~
Cottonsced crushed (tons) .. . . .
28,014
44,526
99,095
133,
Cottonseed on hand August 31:
851,683
(ton.) .. .... .............. .
83,645
102,051
181,778
Production of ~roducts:
40,102
8,212
Crude oil (thousand Ibe.) ... .
12,824
29,762
59,141
Cake and meal (tons) .. . . . . .
13,384
20,733
44,334
31,77~
6,049
Hulls (tons) .............. .
10,357
23,589
30,78
Linters (running bales) ... . . .
8,432
12,910
29,321
Stocks on hand August 31:
17,582
Crude oil (thnusand Ibs.). .. .
4,360
5,100
12.461
Cake and meal (tons).......
7,783
9,415
30,353
29,2~~
19,2
Hulls (tOilS) . . . . .. . .. . .. .. .
4,083
5,842
17,000
111,701
Lintors (running bales). .. .. .
14,575
38,133
44,435
SOURCE: United States Bureau of Census.
DOMESTIC CONSUMPTION AND STOCICS OF COTTON-(Bales)
August
1944
Consumption at:
Texas mills ..................................... .
17,978
United States mills ................. ....... ...... .
841,400
U.S. stocks-cnd of mon th :
In consuming establishments ..................... . 1,710,225
Public storage and compresses ......... . ....... ... . 7.930,094
August
1043
19,601
843,187
1,928,263
8,027,415
July
1044
18,atl
724,107
1,873,~~r
8,245,
CROP PRODUCTION-(Thousands of units)
~--Tcxas--~-Elcvonth DistrictCrop
Winter wheat.. ...... ....
Cotton.. .. .. .. .. .. .. .. ..
Corn.............. ......
Oata..... .......... .....
Barley........... .......
Tamo hay. . . . . ... .. .... .
Potatoes, Irish. . .. . . . . . . .
Unit
Bushels
Bales
Bushels
Bushels
Bushels
TOilS
Bushels
Ki;:~~~'. ~~~~~'. '. :::::::: ~~:~~I:
Estimated
Sept. 1,1944
77,071
2,450
64,649
42,471
8,428
1,405
5,016
1~:~:g
• Ari.ona, Now Mexico, Oklahoma Ilnd Texns.
tTcxas and Louisiana. .
.
SOURCE: United States Department of Agrioulture.
1943
30,360
2,823
88,410
21,780
3,341
1,469
6,450
2~:~~~
Estimated
Sept. 1, 1944
78,111
3,128
76,158
47,978
17,846·
1,967
6,006
~~:gm
1943
37'M~
3,
as
102'~11
2~'370'
2'018
7'504
15'072
1
4
44:10
tLouisiana, Oklahoma and T~'
.\
8
MONTHLY BUSINESS REVIEW
600,.000 or slightly over 5 per cent more than the $461,600,000
~ece1Ved during the same period in 1943. The increase in cash
~ncome this year appears to be the result of substantial increases
I~ marketings. Large marketings of small grains, livestock,
cl~rus. fruits and vegetables have been important factors contrlbutmg to the increase.
Farm prices received by Texas farmers during August, as
7eported by the Department of Agriculture, showed significant
Increases for hogs, potatoes, new crop sweet potatoes and hay,
as compared with those of a month ago. On the other hand,
continued moderate declines were indicated for most Texas grain
~rops and meat animals, other than hogs. Prices received for such
Items as cotton and cottonseed, peanuts and poultry were unchanged to slightly higher. As a whole, crop prices were above
the I~vels obtaining during August last year, while prices received
for livestock and livestock products were generally below those
a year ago.
FINANCE
The reserve balances of member banks in this district averaged
f?64,000,000 during August, which was about $24,000,000
llgher than in the preceding month and $41,000,000 above the
average for the first seven months of the year. Although reserve
balances reached an all-time peak of $588,000,000 on September 15, the average for the first half of the month was ab~ut
the same as during the corresponding period in August. DUl'l?"g
A.ug ust , the deposits of member banks showed a further nse
and there was a substantial conversion of reserve-exempt war
loan deposits to customer deposits which is customary betwe~n
war loan drives, as the Treasury withdraws funds fro,? ItS
~CCOUnts at depositary banks to meet Government expe~dltures
10 the area. While these factors increased average reqUired reserves by about $17,000,000, this increase was smaller than the
expansion in reserve balances with the result that average excess
reserves rose to $125,000,00'0, the highest for any month since
May, 1943.
The circulation of Federal Reserve notes of this bank during
the first half of September averaged $493,900,000, which is
$13,000,000 higher than in August and $130,000,000 greater
than a year ago.
. T~1e ~ross deposits of weekly reporting member banks in this
dlstnct mcreased further by approxima tely $3 2,000,00 0 betw~en
:Au?ust 9 and September 13, reflecting the continued expansIOn
In m~erbank and time deposits and a rise in adjusted demand
depOSits which more than offset the decline in Government
deposits. The sharp increase in adjusted demand deposits during
the five weeks raised the total on September 13 to a new peak
of $1,171,000,000 which surpassed by $47,000,000 the previous
pe~k reached in June prior to the large-scale transfer of customer
deposits to war loan deposits in payment for securities p~r
chased during the Fifth War Loan Drive. Government depOSits,
consisting mainly of war loan accounts, which reached a peak
of $350,000,000 on July 12, had declined to $227,600,000 on
September 13.
The loans of these banks declined further by about $9,000,000
~uring the five weeks. The decrease was chiefly in commercial,
~dustrial and agricultural loans, which have shown a c~n
SlStent decline since the sharp expansion that occurred durmg
~e Fifth War Loan Drive. These loans, which t otaled $334,00,000 on September 13, were at the lowest level re~ched since
March this year, but were still about $36,900,000 higher than
a year earlier.
During June and July, when weekly reporting mem~e: banks
greatly increased their holdings of Governm en' secunCleS, the
CONDITION OF THE FEDERAL RESERVE BANK
(ThousnnJs of dollors)
Sept. 15,
Sept. 15,
1943
1914
~65 I ,8!;a
Totol cas], reserves ..... .. ....... . ... . ........ . .. . S609,076
127
175
Discounts for member bnoks ........ ...... . ..... .. .
t8
NonD
Indu, trilll advone"" ..... .. ............... .. . . .... .
270,310
534 ,567
United Stntes Government securities .............. . .
270,455
534,742
Totlll earning assets . ... . . .......... . . .. .... . . .. . .
507,563
587.776
Member honk reeerve deposits . ........... . ... . . . . .
365,277
492,862
Federal Reserve Notes in aetu"I eireulotion ......... .
August 15,
1944
$581 ,773
NOOD
Nono
527,090
627,090
574,808
480,906
CONDITfON STATISTICS OF 33 MEMBER BANKS IN LEADD!G CIl'rES
(Thousand. of dollnrs)
Sept. 13,
Sept. 15,
Augu.qt 9,
1944
1943
1044
Totnl loans and investments ..... . ......... ········ SI,556,I 68 $1,256,718 $1,564,807
Total lonns .. ....... .......................... ·
334,884
297,967
343,710
Commereiol, industrial, ond ngrieultural loons....
227,896
210,857
236,33 1
Lonns to brokers ond dealers in securities..... . . .
2,245
2,339
2,605
Other lonns for purchasing or currying securities. .
41,535
19,356
4 I ,913
Real estate loon ............................ · ·
20,713
19,566
20,389
Loon. to banks .............................. ·
214
84
42 1
All other lonns.... ...................... .. .. .
42,281
45,705
41,961
Total investments .... . .. . .............. ········ 1,221,284
958,751
1,22 1,097
U. S. Treasury hills .. .... ...... .. .......... .. ·
121,483
\04,015
126,652
U. S. Trel1llury certificates of indebtedness . ... .. .
348,923
239,47 1
352,482
U. S. Treasury notes .. ... .................... ·
218,4 19
147,577
216,894
U. S. Government bonds . ... . ........ . ........
467,423
358,434
460,314
Obli~ntion. ~unrnnteed by United States Gov't..
20,629
56,714
20,629
Other £eeurities ....... ... .............. · .... ·
44,407
52,540
44,\06
Reserves with Federnl Reserve Bonk .. ......... . .. ..
320,628
296,964
322,818
Bulnnees with dome.tie banks . . ....... . .. . ... ·,· · ··
260,769
259,314
228,573
Demond dejlosits-tldjustcd- ..... .. . .. . . . . ... ,.... 1,17 1,356
1,002,29 1
1,075.048
T,me depo." ts........................ ..........
196,574
149,847
190,378
United Stntes Government deposits........ .. .......
227,597
153,564
3\0,220
Interbonk deposits.... . .. .. .. . . . . . . .. . . .. . . . . .. . . .
4991070,,4e
454,442
478604
Borrowing. from Federal Reserve Bonk.
N
None
None
- Includrs all demond deposits other than ioterbank and UniteJ State. Government less
cash items reported oS on hand or in proe",," of eollection .
'
DEBITS TO INDIVIDUAL ACCOUNTS
(Thousands of dollars)
July
Petg.ehan5e
Petg.ehange
Augu, t
Au~ust
1944
over mont 1
over year
1943
1944
17,239
+2
+17
15,085
Abilene ................. S 17,608
-6
48,205
+23
36,781
45, 170
Amarillo .. .. .. . . . .......
70,759
+5
+21
61,666
74,603
Austin ....... . ..... · ·· ..
M,739
-9
- I
51,983
51,538
Beaumont . . .... ...... .. .
53,162
-8
+13
43,1~0
48,756
('orpus Christi. . .... . ....
- t3
0.449
-2
5,713
5,616
Corsienno ......... . .....
- 2
514,319
434,548
+16
503,415
Dnllas ....... · · ...... · ..
52,246
- 13
-4
47,466
45,547
Ell'oso .................
-5
215,168
177,706
205,233
Fort Worth ..............
+ 1&
45,986
-7
40,470
42,916
Gulv""ton . . ...... .. · .. · .
628,794
+2
452,343
540,403
+ I~
HOll. ton .. ... . ···· .. ···· .
11.380
-2
10,285
11,148
Laredo ... .... ....... · ...
- 1
23.943
19,925
+19
23,690
Lubhock .. . .............
10,668
+12
15,051
+ 1
16,815
Monroe, Ln ... . ..... · .. ··
-7
24,1 33
+20
1 ~,7 15
22,450
Port Arth ur . .. . . . . .. ....
12
8,587
6,949
+9
7,548
Ro,well, N. M. ....... · ..
- 16
16,663
+10
12,635
13,843
Ban Angelo ..............
11
154,536
1
2~,075
+9
137,156
San Antonio ............
72,879
+6
+ 19
64,467
76,956
Shreve pori" La .. . . ... .• ..
18,940
+23
+ I
15.614
19,202
Texarkana- . .... .. .. ··· · .
-3
27,364
24,063
+
11
26,592
Tllcson, Ariz . ........ . . ..
22.4(10
+32
17,208
+ I
22,743
- I
26,403
23,965
+9
W~~~:::::::::::::: : :: : : 26,183
-12
28,532
21,070
+17
2~,144
Wichita Flllls .... . .......
Totnl- 24 oities .... ...... $2,010,276 $1,743,473
+ 15
$2,061.454
- 2
-Includes the figures of two banks in Texnrkana, Arkansas, loenteJ in the Eighth DistrIct .
GROSS DEMA ND AND TIME OF-POSITS OF MEMBER BANKS
(Average of daily figures- ThorrSllnds of Jollnrs)
Combined totol
Rc.... rve eity bunks
Corrntry hnnks
~
Gross
demnnd
August 1942 ...... . ... · · .$1,985,1 28
August 1943 . ... . . ..... . , 2.925,647
~ril 1944 .. .. ......... 3,292,252
ny 1944 .. .... .. . .. .. 3,275,467
June 1044.. .......... · 3,361,412
July 1944.. .. .. ...... · 3,601,462
Augu.t 1944, ............ 3,655,893
Gro.'jS
demand
Time
$226,9 16 51,137,687
245,390 1,585,376
284,688 1.709,275
291,239 1,694 ,017
296,955 1,740,241
303,719 1,900,222
307,179 1,925,789
Gross
Time
demnnd
Timo
$127,231 $ 847.44 1 $ 09,685
145,304 1,340,27 1 100,OR6
175,62 1 1,582,977 108,918
180,464 1,581,450 110,775
184,628 1,612,171 11 2,327
187,985 1,701,240 115,734
192,204 1,730,104 114,975
SAVINGS DEPOSITS
August 31, 1044
Number 01
rc~~~~:g
Beaumont . ... .. . · · · .. · · .
Dallas .. . ... · ........ · ..
EI Paso ........ ........ ·
Fort Worth ............. ·
Gnlvrston ....... · .......
Houstoo ........ · .. .. · .. .
Luhbork .. .... .. ........
Port Arthur .... .........
Snn Aut.onio ....... ......
Shreveport, La .. .. .. .. ..
WarD ..... · .. · .. · ...... ·
Wiehitn Fall.............
All other ................
ToW .... •• .. •• •
a
8
2
a
4
10
2
2
6
3
3
3
68
106
Number 01
Mvings
Amount of
savin~s
63,573
dcpo."t.
$ 5,667,611
44,456,713
13,612,199
20,786,280
14,011,713
46,497,842
498,762
3,913,440
27,814,212
10,924,867
6,792,006
3,804,545
34,642,535
414,09(1
~734
depositor.
11,480
102,222
24,038
35,311
20,701
84.616
826
5,342
32,444
29,288
8,163
-
6,80~
Porrent.gc chan,e in
savings deposits rom
August 31,
1043
+18.3
+36.6
+38.7
+32.5
+2).5
+24.0
+ 6.5
+ 18.7
+29.0
+29.4
+20 .6
+ 5.3
+19.5
--+26.9
July 31,
1944
+ 2.3
+ 3.5
+ 3. 6
+ 3 .9
+1.9
+ 2. 0
+1.7
+ a.1
+ 2.7
+ 2.7
+ 3.3
+ 1.9
+ 3.5
+ 3.1
MONTHLY BUSINESS REVIEW
4
additions represented to a large extent short-term securities consisting of Treasury bills and certificates of indebtedness. During
the five weeks ended September 13, the total investments of
these banks showed little change, but there was a shift of about
$ 8,700,000 of their holdings from Treasury bills and certificates
of indebtedness to Treasury notes and bonds.
The funds made available through the increase in deposits
and the decline in loans were utilized to build up their balances
with the Federal Reserve Bank and with correspondent banks.
On September 13, balances with correspondent banks were at
the highest level since the spring of 1943.
INDUSTRY
Total nonagricultural employment in Texas, after showing
a substantial seasonal decline in January, has remained relatively
stable and during recent months has been at about the same
level as during the corresponding period last year. Total manufacturing employment has shown relatively little change during
the past year, but there have been substantial shifts between
plants and among industries. The demand for munitions, which
was intensified by the invasion of France early in June, imposed
new pressures upon ordnance plants in Texas; consequently,
employment at these plants has increased during the past three
months and further additions to working forces are expected.
Employment at petroleum refineries and at chemical and rubber
plants has continued the upward trend in evidence since the
beginning of the year. Employment at shipyards, which was well
sustained earlier in the year, has recently shown some decline.
The number of workers at aircraft plants has been declining for
several months, largely because of the increasing productivity of
workers, but the recent cut-back in the aircra'ft production program has accelerated the decline in employment at some Texas
plants and further decreases in the number of workers are expected. Employment at lumber and textile mms is apparently
considerably below the level of a year ago, due largely to the
inability of plants to secure workers. During recent months, the
trend of employment at iron and steel plants has been upward,
while there has been a substantial downward readjustment in
employment at nonferrous metal plants. Civilian employment
at military establishments has been well sustained.
NONAGRICULTURAL EMPLOYMENT IN
TEXAS
2000
~------"~.-----4---- --t-------t-~s=~t_~~--~ ,~
F:7~4:":':'~5±t;~~tai@@~m~~~,,",~-----l'oco
Construction activity in the Eleventh District reached an
all-time peak in 1942 when the value of awards aggregated
$914,205,000, and reached a monthly peak during October of
'that year with total awards of $132,286,000. Since 1942, the
value of awards has fluctuated considerably from month to
month, but the general trend has been downward, reflecting
the effect of the completion of large installations for war purposes and the .shortages· critical building materials. In August,
of
the value of construction contracts awarded in this district
indicated a marked increase over the preceding month but the
aggregate of $16,769,000 was about 6 per cent below awarqs
in August, 1943. The continued decline during August in residential and public utility awards was more than offset by substantial gains in non-residential and public works construction.
The total value of construction awards for the first eight months
of this year, however, amounted to only $106,932,000, or about
61 per cent below that for the same period in 1943. During most
of 1942 and the early part of 1943, virtually all of the construction in Texas represented publicly financed projects, but the
volume of privately financed construction increased substantially during the last half of 1943 and has constituted about 25
per cent of the total thus far in 1944.
MILLION
200
...
CONSTRUCT ION
El.evENTH
CONTRACTS
rEO~ R AI.
RESERVe
AWARCED
OI.sTRIGT
=I:=:::::j ':
lfi--...·---+---J
""
..
"
''''
The production of Portland cement at Texas mills also reached
a peak in 1942 coincident with the record volume of construction. In that year, production averaged 1,011,000 barrels monthly, but in conformity with the downward trend in constru~
tion, it declined to a monthly average of 798,000 barrels III
1943, and during the first seven months of tllls year, it dropped
to a monthly average of 495,000 barrels, representing the lowest
production rate since 1936. After the middle of 1942 wh~n
mill stocks reached an exceptionally low level, production In
most months exceeded shipment with the result that stocks
reached an all-time peak of 1,124,000 barrels on February 29
this year. During recent months, the excess of shipments oyer
production reduced mill stocks to 843,000 barrels on July ~ 1,
or less than two month's supplies at the current rate of shIpments.
Military needs for petroleum and its products have increased
rapidly during the .past two years placing unprecedented demands upon the productive capacity of the oil fields of ~he
nation, and especially on the oil fields of this district, whIch
continue to account for virtually all of the increase in petrol eufll
production in the United States. During the fust four mon~hs
of 1943 the daily average crude oil production in this distnC t
was 1,551,000 barrels, but since May of 1943 the general pro.,
duction trend has been upward .. In August this year, crude .ole
production reached a new .peak fo'r the fourth consecu tlY
month with an average of 2,289,300 barrels daily, exceeding that
in July by 2 per ~ent and that of August last year by 20 per cent.
Production of crude oil outside of this district increased only
. slightly over the p~evious'~o'n:th arid was less than three pe~ cen
d
above the production for' August last year. The Texas Rallr<Yol
Commission authorized ' a further ' increase in production for
September, amounting to about 65,000 barrels daily in effec tiye
. allowables, indicati.ng It continuance of the upward trend in production duril}.g,the month, ...
MONTHLY BUSINESS REVIEW
El Stocks o~ a~ove ground crude oil declined slightly in the
b eventh Dlstnct during August, but the total of 119,740,000
rrels at the end of the month was about 5 per cent higher
t an. a year earlier. On the other hand, the decline of 15 per
ce~t IU crude oil stocks outside this district during the past year,
re uced total United States stocks at the end of August this
yha r to 222,931 ,000 barrels, which was about 6 per cent below
t e total on the corresponding date in 1943.
h
On August 26 the Petroleum Administrator for War modified
~ell-spacing regulations in 42 countieS in North and West
ent~al Texas to encourage drilling of additional wells and to
Phrmlt simultaneous development of overlaying oil pools in
t. se areas. The modification of restrictions on the use of matena s. in drilling operations in the areas specified were made primanly to permit more extensive drilling in fields that have tWO
or more oil producing formations at different depths.
i
J pri~ling
t
activity in the Eleventh District, after declining in
hy, IUcreased
in August, resuming the general upward trend
~t
has been in evidence since February, 1943, when the low
h~mt was reach d. Despite the increase in d.rilli~g a~tivity that
7 year, the rate of completIOns IS stdl substan. s Occurred thiS
tially below that obtaining prior to 1942.
DAILV AVERAGE PRODUCTION OF CRUDE PETROLEUM
.... ~~tUl
I
'ooI 'oo :---
... .... r
...
...~ ~
T
I
;!
I--
7-51-
'oo I-..
'
000
.00
.00
'00
U s. OUTSIOE ELEVENTH DISTRICT
too
K-
W
T
...I::::""'"4,~~
'oo I-..
,
'II OUUIIO SO# •• ~IICl'
I 'V
I
/
,
:.J
000
000
-;I-
100
. 00
100
,000
I
.00
.00
' 00
' 00 I ..
-. "
0-
1'16
,
..
... ...
tOO
I'"
....
Mill consumption of cotton in Texas during August amounted
t? 17,978 bales, which was about 2 per cent below the consump~~n for July and about 9 per cent under the consump~ion ~or
d ~ust, 1943. Cotton consumed at United States textile mllls
ur mg August, which totaled 841 500 bales, sho·wed an increase
oanf 16 per cent over July consumption,
'
.
and was larger t han tn
. yother month of the current year except March. Moreover,
It
. approximately the same volume
'
Thw as l~
as inI
August ast year.
e lag IU textile production which has been apparent for several
honths has been caused by labor shortages, and according to
e War Manpower Commission the number of workers must
e greatly expanded in order to' increase output sufficiently to
Irneet t h e estima ted requirements for all types of cotton textl.'1 es.
bn fu rtherance of the Stabilization Extension Act of 1944, which
ecame effective on June 30 the Office of Price Administration
re
on ~eptember 17, announced price increases at mill level agg gatmg about 10 per cent above present ceilings for all fine
CO~to';l goods. It was indicated that, for the present, the mill
Pl'lce Increases will not result in retail price increases since con.
.
1Verters are not now perrrutted
to pass on Increases
at th e mill0
eve!. The new price increases were made retroactive to June 3
and the previous order permitting the sale of fine cotton goods
on an ad'Justable basis was revoked. After the pnce
. ad'Justments
hye announced, mills released accumulated supplies, mostly to
0dders of high priority ratings and accepted some forward
or ers f rom the civilian trade. Due
'
to the heavy ml'1'Itary demand, however, deliveries to the trade are expected tD be CDn-
t
Retail furnitur.:
Total lith Dist ....
Dallas . ...........
Houston ...........
San Antonio .......
50
6
8
3
+7
+13
-8
+18
Indcpond.nt stores:'
New Moxico . ......
Oklahoma ... ... .. .
Texas .. ...... . ....
393
075
+18
Wholesale trade:'
Drugs .... . ...... ..
Electrical supplies. .
Groceri............
Hardware.........
Surgieal eQuipmeot.
'Compiled by Unitod
-8
- 30
+8
+3
- 7
+8
+iil
+11
'+8
+is
+0
+6
+16
5
+17
+16
+11
+21
+ 1
- 20
+ 13
3
20
+ 4
+ 6
+ ' 6'
':":"2
':":"4
13
+ 8
+10
+ 5
+10
+ 0
6
+36
+ 7
+27
- 3
- 3
States Bureau of Census (wholesalo trado figurcs preliminary).
tBtoeks at ood of moath.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
AIU9g4ust4
IJOu41y
J u0 0
l 944
Sales (1086-1030m 100)'
4
Without s.asonal adjustmeat. . . . . . . •
220
202
203
With s.asonal adjustment...........
250
277
245
Stocks (1923-1025 m I00)
Without soasonal adjustm.nt ....... .
With soasonal adjustment ....•.... · ·
'Sales ind.x revised.
109
116
115
126
123
121
August
1943
183
208
117
115
100
ELEVENTH FEDERAL RESERVE DISTRICT
'oo
'oo
Wl,'IOLESALE AND RETAIL TRADE STATISTICS
~_ _ _ _ P.rcontngc change il l : : - - - - -Number
Net sal.s
Stocks t - of
August 1044 from
Jan. 1 to
August 1944 from
reporting August
July
Aug. 31, 1944 August
July
Retail trado:
firms
1043
1944
from 1043
1043
1014
Dcpartm.nt stores:
48
+24
+22
+16
+ 4
+ 8
Total 11th Dist ...•
7
+26
+30
+22
+ 9
+ 7
Dallas ....... .... .
4
+21
+22
+13
+17
+ 0
Fort Worth ...... ..
7
+20
+17
+15
+
7
+
6
Houston .......... .
5
+30
+26
+11
- 4
+ 9
San Antonio .. , .. • .
3
+10
+13
+20
Shreveport ....... .
22
+23
+18
+13
- 8
+."0
Otber cities . . .. .. . .
CRUDE OIL PRODUCTION-(Barrels)
Increase or decrease in daily
August 1044
average produotion from
Dailyavg •
Total
July 1944
August
1943
production
production
+ 6,287
247,450
10,450
7,670,950
North Texas ...... .. .... ... .. 15,033,450
+20.626
222.447
484,050
WestTex ......... ··· .. ··· · .. 16,099,850
+ 7,174
17,021
510,350
Enst Texas ....... · ·· · ...... ·
+ 1,007
+ 81,521
321,650
0,071,150
South T.xas .. . . ...... . ...... 16,501,200
+ 3,650
+ 60,371
535,200
Coastnl T.xas ............... .
+30,734
+302,710
2,108,600
Total Texas ..... . ... 65,366,600
- 1,260
106,908
+ 2,422
3,316,950
New Mexico .. .... .... ·· .. · ..
+ 1,621
9,345
73,724
2,285,450
North Louisiana . . . . . .. . . .. . , .
+40,005
+385,787
2,280,322
Total District . .... ... 70,069,000
SOUROE: Estimated from Ameriean Petroleum Inetituto w.ekly reporUi.
t
---
-
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(Thousanda of dollars)
January 1 to August 31
Augus~
August
July
1944
1943
1944
1043
19..
I 106,932 $ 277,262
Elov.nth District-total. . I 16,760
I 17,814
I 9,451
20,240
68,209
Resid.ntlal. . . .. . . .....
1,181
4.851
1,894
86,602
208,063
All other. .... ...... . . .
15,638
12,063
7,557
2,448,724
1,320,101
100,530
United Statcs'-total.. ...
169,341
413,701
610,455
262,078
25,818
Residential ...... . ... , .
23,273
67,403
1,820,260
1,067,123
164,726
All oth.r ... . , ...... . . .
146,068
346,208
'37 stat~s enst of the Rocky Mountain.
SOUROE: F. W. Dodge Corporation.
BUILDING PERMITS
August 1044
Abil.ne. . . .. .. . ..
Amarillo .. . .. .. ..
Austin. .. . .. .. . ..
Beaumont . ... . . , .
Corpus Christi . . . .
DallAs .. ... . . ,. . .
EI Paso. .........
Fort Worth. .. .. ..
Galveston. . . . . . . .
Houston . ... .. " ..
Lubbock . . . . . . . . .
Port Arthur ..... ,
SaD Antonio. . . . . .
Shreveport, La .. ·
Wnco. . .... .... ..
Wiohita Falls. . . . .
No. Valuation
11 I 50,335
80
119,416
84
40,676
127
161,061
122
202,016
571
323,110
66
178,496
246
293,908
24
1l,066
250
889,105
121
go,050
59
27,040
802
482,886
207
101,233
40
24,539
25
68,926
--
Total.. .... 2,834 12,842,938
Peroontagc chllDgo
Perc.ntage
Jan. 1 to Aug. 31, 19U ehanqa
valuation from
valuation
No. Valuation from 1948
Aug.l043 July 1944
+440
201
I
315,266
+ 88
38
+ 19
595
906,539 + 91
+921
_
61
809
425,763
+104
45
+336
1,060
626,459 - 71
+526
+
14
1,017
1,368,673
50
+141
_ 31
4,078
5,742,701
+138
- 57
_ II
676
1,081,677 +220
+418 + 30 1,866 2,303,312 - 50
- 57
- 96
600
811,663 + 17
-83
- 12
1,007
6,383,835 + 6
-17
_ 76
1,057
748,461 +374
+124
486
227,532 + 6
_ 29
+218
6,015
2,803,025 + 50
+88 -+ 40
62
1,195
766,706 +100
47
- 61
627
1,161,585 + 94
- 42
+228
242
196,050 + 44
+ 62
+
+
+
-
5
-
17
24,320 $25,858,146
+ 12
6
MONTHLY BUSINESS REVIEW
tinued on a restricted basis. On account of the acute demand
for cotton duck, the War Production Board has ordered a considerable number of looms to convert from the production of
other fabrics to the manufacture of duck, and has required all
looms producing the needed grades and qualities of duck to
operate at a maximum number of hours per week. Stocks of
cotton on hand in consuming establishments at the end of
August totaled 1,710,000 bales, as compared with 1,928,000
bales in August last year, indicating a decrease of 11 per cent.
Stocks held in public storage and compresses on August 31 were
7,937,000 bales, which was about four per cent below the
amount on hand at the end of July and one per cent under the
8,027,000 bales held on August 31, 1943.
Reflecting slow progress in the picking and ginning of cotton,
cottonseed receipts at Texas cottonseed oil m ills during August
were only 80,160 tons or about 51 per cent below the receiptS
for the same month a year earlier. Although the amount of s~cd
crushed showed a seasonal increase during August, as many mIlls
resumed operations, the total was 37 per cent less than in August,
1943. August production of cottonseed oil, cake and meal, hulls
and linters ranged from 35 to 42 per cent below that in the
same month last year. Stocks of cake and meal and linters all
hand at Texas mills declined further during August, and ell d
of month stock of all products were sharply lower than those
On August 31, 1943.
INCOME PAYMENTS TO INDIVIDUALS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT
According to data compiled by the Department of Commerce, income payments of individuals in the five states, wholly
or partially included in the Eleventh Federal Reserve District,
are estimated to have reached $10,022,000,000 in 1943, as compared with $7,726,000,000 in 1942 and $4,585,000,000 in
1939. The increase of 30 per cent in income payments during
1943 was substantially larger than the national average. During
the period from 1939 to 1943, inclusive, income payments in
this district rose 119 per cent, as against an increase of 96 per
cent for the n ation. While the increase in each of the five states
in this district was above the national average, Arizona ranked
first with a gain of 148 per cent, and was followed hy Texas
and Louisiana with increases of 123 per cent and 120 per cent,
respectively. These three states also showed the largest percentage gains in 1943 as compared with 1942.
The rate of increase in income payments between 1939 and
1941 in this district was smaller than the national average,
but it was greatly accelerated in 1942 and 1943 when this district became an important factor in war production. In 1940
and 1941, industries in this district received a relatively small
volume of contracts for war production. This situation reflected
the fact that industry in this district is composed mainly of
small units, and the initial supply contracts were awarded
chiefly to large units located in the industrial areas of the
United States which had existing facilities to produce the products.
In 1942, urgent war needs resulted in the inauguration of a
huge building program for the construction of military camps
and industrial facilities in this area and were responsible for the
development of an extensive sub-contracting system which
enabled small plants to participate extensively in war production.
As the new facilities were completed, industrial employment
rose rapidly, and large contingents of the military personnel
were shifted to this area for training. The extent of the rise in
the industrial activities is indicated by the fact that payrolls in
war industries rose from $190,000,000 in 1941 to $919,000,000
in 1943. A large portion of this increase resulted from the
expansion in aircraft production and in shipbuilding. There were
also large increases in Government payments to soldiers stationed within this area and in allotments and allowances to
dependents of military personnel. Moreover, the huge militdary
demand for petroleum and petroleum products necessitate. a
rapid expansion in petroleum production in this district durIng
1943. Although cash farm income in this district has more thad
doubled since 1939, the rate of expansion has been less m arke d
particularly in 1942 and 1943, than that of total income all
has been slightly smaller than the national average.
In each of the five states of this district, per capita income is
substantially below the national average and the total for the
region in 1943 constituted less than three-fourths that for the
nation. During 1943, Texas had the highest per capita in cO l1!c,
with a total of $818, but it was 20 per cent below the per capltd
income of $1,031 for the United States. Between 1941 a~
1943, Oklahoma had an increase of 75 per cent in per capIta
income, while Texas and Louisiana had increases of 65 per cent.
INCOME PAYMENTS-Ioao TO 1043
(In millions of doUars)
1030
1940
1941
70.601
75.852
92,260
Unite1 RtBt... ... .. ... .. . .
4,585
4,7M
5,800
Total- five states .. ... . . .
228
237
287
~~i~r~~·a·. ', :: : : ::::: ::: ~ :
829
847
1,066
178
190
222
NOlO M~.ico .. .. .. . .. . .. .
Oklahoma . .. .. .. .. . . ... .
79~
829
956
Texus .. .. ... .... .. .... , .
2,554
2,652
3,269
1942
114,762
7,726
426
1,395
285
1,2R3
4,337
Income payments eaoh state as a percontage of National total
100 .0
100.0
100 .0
1000
United States.. . ... . .. . ..
Total-five atate....... ..
6 .4
6.3
0 .3
0.7
Arizona........ .... . . . . . .3
.3
.3
.4
Louisiana..... .... .. . .. ..
1.2
1.1
1.2
1.2
New Mexico.. ...... .. .. .
.2
.3
.2
.2
Oklahoma.. .. . . .. .. .. .. .
1.1
1. 1
1. 0
1. 1
Texll8.. .. .. .... .... .. .. .
3 .0
a .5
3 .6
3 .8
PER CAPITA INCOME PAYMENTS- (In dollars)
1980
1940
1941
1942
United Statc.-. . . . . . . . . • . .
539
575
003
858
~~i~r.~n·(":, ::: : : ::::: : :: :
Now Mexico.. .... .......
Oklahoma .. .. .. .. .. .. .. .
m m
341
340
Texll8.... ....... .. .. . .. .
401
SOURCE: Dopartmont of Commerce.
35H
356
413
~g~
416
417
497
m
530
579
647
100. 0
7.3
.4
\.3
.3
\.2
4.1
1043
1,031
805
714
656
729
818
MONTHLY BUSINESS REVIEW
OCTOBER 1, 1944
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
INDUSTRIAL. PRODUCTION
I'tIf' IO.I.L ~lIiI' ICUOUL., 401lltTU. !tU. " "" 'O~ r ' UL
'I
240
0
l - t--
leo
ISO
120
100
I
f\;-
[QU?~
- rAN'~
~
,
100
80
''' ' ' '''4'fl.
~Ff /l
. ,,'
._-/ 0r
I
/
60
!J,.
40
ClI.IfllAlr..r
.L
20
o
fff=f" I 1-1
,
eo
I
120
L'"LN!IIY '
h~J
I
LL
11'
,.ftfT • • ~"
140
20
o
1940
1942
1944
1940
1942
1944
tcr~derf l R~serv,e indexes, Groups are expressed in
latess 0h POlOtS lO the total in dex, Monthly ligures,
t s Own arc for August, 1944,
Industrial output and employment showed little change in August. Retail trade was at a new high
level for the month. There was a sm all further rise in retail commodity prices.
INDUSTRIAL PRODUCTION
Output at factories and mines was 232 per cent of the 1935 - 39 average in August as compared
with 23 1 for July, according to the Board's seasonally adjusted index of industrial production. Steel
production was maintained, while output of nonferrous metals continued to decline. Over-all, activity
in the metal fabricati ng industries continued at the level of the preceding month, There were large
increases in ou tput of heavy trucks, tanks, and some other critical ordnance items in August; aircraft
production showed little change; while shipbuilding declined.
Output increased in the shoe, woolen and worsted, and paper industries in August following a
drop in July wh ich reflected chiefly the curtailment of operations around the Fourth. Output of manufacnured foods, after allowance for seasonal changes, declined in August, largely reflecting decreases in
output of meats, d airy products, and Sl,lgar products. Distilleries were shifted for the montb of August
from production of industrial alcohol for war purposes and output of about 50,000,000 proof gallons
of beverage spirits was reported. Production of other nondurable goods was maintained at the level of
the preceding month.
..
. ,. .". . . '.
DEPARTMENT STORE SAL.ES AND STOaKS
~
_ .~ . y
I~
,I
,-1\,
IeOI-
I.
·I M
-
Ii lI.IV'/J
: \ ~-N
0
",u~
14 0
I
,
J
I
~! h '/\ N
!PI f£,
V
120
100
E3;
VI><'
___:r
~
V,
200
100
160
1'4 0
I20
,oJ
I 00
00
I937 19~e 1938 1940 19 41 1942 194:1 19·...
sh Federal Reserve indexes, Monthly ligures, latest
Own arc for August, 1944,
MEMBER BANKS IN LEADING CITIE~
average has been at the highest level on record.
Carloadings of railroad fright were maintained in large volume in August. During the first three
weeks in September loadings were slightly less tban during tbe same period a year ago, owin!: to decreases
in all classes of freight except merchandise in less tban carload lots and miscellaneous shipments.
1&40
194 1
and bricks were increased.
R etail prices of food and other cost of living items increased slightly in August and the average
of all items was 2 per cent higher tban a year ago, according to the Bureau of Labor Statistics index.
AGRICUL l'URE
10
ll1e~~mand ~eposits
Wholesale prices of farm products and foods showed small seasonal decreases from the middle of
August to the middle of September. Maximum prices of such industrial goods as cotton fabrics, cement,
Crop prospects improved during August and tbe early pare of September and harvests of most
major crops are expected to be larger than last season, Marketings of livestock products, which were
at a record level earlier this year and 15 per cent higber than during the first six months of 1943, have
declined in July and August to about the s~me level as tbau prevailing last year.
1 - - 1-__1-_
1 1939
DISTRIBUTION
Value of department store sales, according to the Board's seasonally adjusted index, was la rge r in
August and the first half of September than in the first half of 1944 and averaged 12 per cent above
the corresponding period of last year. In the third quarter the index at 90 per cent above the 1935 -39
COMMODITY PRICES
eo
10
Minerals output in August rose 2 per cent from July, reflecting increases in coal and crud e petroleum. Crude petroleum production was at a rate 11 per cent above the same month last year.
~2
-'94
- '- - ' -"'
- 4-"
(ad justed) exclude U, S, Govern·
GOvcr~nd Interbank deposits and collection items.
iSSu es \WnJ secu rities include direct and guaranteed
tCll1b~r 13~ 19c.;J.a y ligures, latest shown are for Sep-
IAEMO ER BANK RES E ~VES
-"-1-_ _..., 10
'~!la
,
0
lNO
194 1
19 42
194&
1044
Breakdo
'
I>ar'tly
c , wn b etween required
and excess reserves
for SCpt~tJmbeated, Wednesday ligures, latest sbown are
III r 20, 1944.
BANK CREDIT
Bank deposits of businesses and individuals, as well as currency in circulation, bave increased since
the end of the Fifth War Loan Drive. This increase in the money holdings of businesses and individuals
is largely a reflection of the expenditures made by the Treasl'ry from its war-loan accounts built up
during the drive, Adjusted demand and time deposits at member banks in leading cities increasd by
nearly 4 billion dollars between the close of t~e drive an,d mid-Sep~cmber, Or by ov~r three-quarrers of
t he amount of reduction in such funds dunng the dnve. DepoSIts at non-reportlOg banks probably
increased by nearly 2 billion dollars. Treasury war loan accounts at banks declined by nearly 8 billion
dollars.
In the same period loans and investments at weekly reporeing member banks in 101 leading cities
, d b 2 2 billion dollars, Loans to brokers and dealers for purchasing and carrying Government
y .
,
d ecIlOe
securities declined to a level approximately equal to that of the pre-dnve period. There was, however,
, crease in such borrowings in late August and early September presumably associated with
a temporary 111
•
,
market transactions stemming from the Treasury offer to exchange certIficates maturlOg on September
1 and notes maturing on September 15 for new issues. Loans to others for purchasing and carrying
"
d l'ned steadily but on September 13 were Hill well above the pre-drive level. Government
securitIes cc 1
. ,
, hid ' s showed a net decline of 800 million dollars over the period, reflecting mainly subsecunty a 109
.
. , .
st antial bill sales by reporting banks partially offset by some Increase In bond holdlOgs.
As the result of the increase in deposits of businesses and individuals, the average level of required
mber banks rose by about a billion dollars between the close of the Fifth Drive and
II e
m ,
.
."
reserves at a
'd S
b
In addition a billion-dollar IDcrease 111 money In CIrculatIon and some further decrease
ml - eptem cr.
,
,
ld
k ser ved to absorb reserve funds. Member bank needs for reserves due to these factors wece
InF HOC
,
'h
gh an increase of 1.7 billion dollars in the Government security portfolio of the Federal
met I arge I y t rou
.
,
e was also a slight increase in Reserve Bank dIScounts. Excess reserves declined
Reserve Ban k s an d tller
vel of I 4 billion at the cl05e of the drive to somewhat less than a billion by early
le
rom
an
average
.
f
September.
@FedFRASER