Monthly Review
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MONTHLYof REVIEW AGRICULTURAL AND BUSINESS CGNDITIQIVS IItiI THE NINTH FEDERAL RESERVE DISTRICT VoI Serial .7 1, No. S07 Federal Reserve Sank, Minneapolis, Minn. July 29, 19~4U Business volume declined slightly during June but largest for the month since 1937 . Public waxks con- was at the highest June level in recent years. Mem- struction contracts increased sharply to the highest ber hank mans and deposits increased moderately level for Tune since 1932 and accounted in large during the quarter ended June 3d. Farm income de- part for the increase in total building and constxuc- clined during June. Farm prices declined but were tion. Euilding permits issued in 73 cities and towns somewhat higher than in June 1939. in this district during June were more numerous and total valuation was 270 larger than in June 1939. BUSINESS Cities reporting increases were well distributed throughout the district but Minnesota cities recorded The volume of business in this district declined the largest gains. slightly during June Gut as in the 8 preceding months was at the highest level for the month in recent Warranty deeds and mortgages recorded in Hen- years. The adjusted index of hank debits at 94 cities nepin and Ramsey Counties declined seasonally dur- declined sharply from the high May level, due in ing June but continued to be the zr-xost numerous for large part to the practical completion of the mar- the month fox more than a decade. keting of Commodity Credit Corporation loan wheat. The bank debits at farming centers and coun- Business failures in June were smallex both in try check clearings indexes also declined, but by number and in dollars of liabilities than in May and relatively smaller amounts. Sales at city department were the smallest far June since i 919. Non-farm stores declined mare than seasonally from the high real estate foreclosures declined during May arsd levels of April and May and sales at country de- were substantially smallex than in any other May in partment and genexal stores declined slightly, reduc- recent years. ing the adjusted index from 1 Q4 in May to 103 in June. Country lumber sales Sales at Department Stores also declined more than Cumuia[ire seasonally. AlI of the above mentioned indexes, No. of % June 1940 urn 1940 however, were at the highest June level since 1929 Stores ofJune 1939 of 1939 or 193Q. Both miscellaneous and other freight car- Mpls., 5t. Paul, I7uhath-Superior . 21 102 104 Ioadings Country Stares . 4 3 9 106 108 continued to increase during fone and were Minnesota . 144 106 10$ at the highest level for the month since 1937. Em- Minnesota . .Central. 28 1 1 } 1 10 ployment in Minnesota during June increased for the Northeastern 1~linnesata . 18 1 U 7 1 f 0 fifth consecutive month and was the highest for June Red River VaiIcy Minnesota . 12 9$ 10$ since 1937. South Central Minnesota , , . , 28 102 104 Southeastern 14'[innesata . 14 106 104 Southwestern Minnesota . 39 106 110 Northwestern Business Indexes Montana . 46 107 110 ( 1929-1431--100) Mountain . , . 13 I Q6 1 10 June May June lone Plains . ., . 33 107 109 1940 L940 1489 1938 North Dakota . 76 1 06 1 1 3 Bank debits--94 ClYFe8 . 92 106 86 79 North Central 1\?orth Dakota, , . 14 103 l OT $ank debits-farming centers. 97 99 89 84 Narthw~~t~rn North Dakota . 12 105 1 1 7 Country check clearings . , . , . , 159 1 71 1 45 135 Red River VaIfey North Dakota . 24 107 113 City department store sales . 97 100 95 92 Southeastern North Dakota . 21 109 111 City department store stacks . 84 84 82 79 Southwestern North Dakota . 5 114 129 Country department store sales, 103 104 97 95 Red River Valley---Minn. & hl. D, . 36 104 112 Country lum~er sales . , . 1 I 1 1 18 99 85 South Dakota . , , 86 103 104 Miscellaneaua carlaadings . 89 8fi $1 67 Southeastern South . Dakota. , . , 19 1 fly 103 Total carloadings [excI. miscellaneous] 9Q 85 73 55 Other Eastern South Dakota . , . 55 102 105 Employment-Mien, [1934-1UD] 109 T06 105 95 Western ~~uth Dakota . , . , . , , 12 99 103 Farm prices-Minn. [l92l-20-1[IO] 65 72 b3 73 Wisconsin and Michigan . , , , . 67 106 T 08 I\rorthcrn Wisconsin & Michigan 3 f 1 Q7 1 1 1 Total building and construction in this district as West Central Wisconsin . , . 36 16b 1 07 Total District . , . , , . , reported by the F. W. Dodge Corporation continued 440 104 106 to increase during June and was 22 ~;, larger than a Department store sales in this district during June year ago . This was the largest building volume for continued to be larger than a year earlier. Sales at June since 1931 with the exception of 1937 and was city stores were 2 ~n larger while country stores re- the first month this year that construction was coxded a gain of G j'r. Sales increases were almost laxger than one year earlier. Residential building de- universal throughout the district with only two sec- clined seasonally but continued to be about one- tions showing slight declines. During the first half third larger than a year ago, Commercial and indus- of 194fl, department stare sales in the district were trial building became more active and was the 6°fe laxger than in the corresponding period of 1939. 240 AGRICULTURAL ANQ BUSINESS CUNUITIDNS rviy ag, tgao Country stores experienced an 8 fo gain compared to 4°fo far the city stores. Every retail trade section in out district had a larger volume of sales during BUSINESS TRENDS the brat six months of 1940 than during the first NINTM F. R. RISTRICT half of last year . Retailers' collections vn accounts and notes re- I 1 I~ ceiva~le at 43 stares were poorer than one year " DEPC]51T5 - ALL earlier. While actual collections were larger than a year ago, the percentage collected of receivables at the beginning of June was smaller than in the pre- BANIt oEgIT vious rnanth yr in June 1939. Wholesalers' collec- . _ tions improved during June and were better than one year earlier. The turnover of outstandings at the beginning of the month averaged more than one LIFE INSUR time monthly whereas in June 1939 it was slightly less than once. City department store inventories declined sea- DEPT srnRE SALES sonally during June and on June 30 were only 2 °~o larger than on that date last year. Country depart- Y ment store inventories declined as usual during June and were 3 fa larger at the end of the month than one year earlier. Wholesalers' inventories on June COUNTRY LUMBER 5' 30 were srnalIer than one month earlier but were 3°fo larger than on June 30, 1939 . Iron mining activity increased again in June and I was operating at a near-capacity rate. More than 9 .5 v Y million tons of iron ore were shipped from upper lake ports compared to 5 .6 million in June 1939. - r In only one ether June since 1929 has more than 9 million tans been shipped and that was 1 d. l million in 1937 when stocks were unusually law and steel BUILDING CQNTRACTS mill operations exceptionally high at the opening of the season. Iron ore stocks at Lake Erie docks and furnaces on July 1 were smaller than usual and iron ore consumption during June exceeded hoe million tons, the largest for June since 1929 . Copper pro- f duction declined slightly during June but was 60 °fn r larger than in rune 1939 and was the largest for June since 3 937. 'rhe volume of manufacturing production in this district during June as indicated by the lines mentioned below declined slightly from the May TOTAL. CAFtLDAD1NG5 level but was higher than a year earlier. Flour pro- I duction declined more than usual during June and flour shipments dropped sharply whereas an increase in shipments usually takes place at this season. Ship- ELECTRIC POWER CQNSUMPTI ments of linseed ail increased somewhat to the highest level for the month since 1929 but linseed oil cake shipments declined mare than usual. Slaughterings of cattle and calves declined and were FARMER'S CASM INCQME smaller than in 1939. Slaughterings of sheep de- clined seasonally but were larger than the unusually v small rune 1939 kill. Hog Slaughterings increased whereas a decline is usual during June and were shout 60~fo larger than a year ago. The cut of lum- ber declined in June lout lumber shipments were un- changed from May. Lumber cut, however, was a little larger than in June 1939 whereas lumber ship- ments were slightly smaller. The Minnesota index of manufacturing employment advanced from 103 in May to 106 in June. The index was 142 fnr June 1939. Electric power utilized fluxing May in Minne- sota, North and South Dakota increased seasonally 19291930r~~r~rr~~~'1931 1932 193319341935193fi 1937 13 I 1944 and was 8 "fo Iargex than a year earlier, NINTH FEDERAL RESERVE ULSTRICT 241 Q'ther business activity indicators that were as July to the lowest level in more than a year. Total high or higher in June than a year earlier were car- cash and due from hanks increased $20 million dur- loadings of coal, coke and livestock ; new automo- ing June tv $27b million on July 3 but declined bile and life insurance sales in our four complete somewhat during the first half of JuIy. Excess r~ states ; and wholesales of hardware, paper and serves continued the irregular decline started in May tobacco products . Indicators that were lower than a and on July 1 7 amounted to $3S million.