Economic Review
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MONTHLY REVIEW o f Financial and Business Conditions F if t h R e s e r v e F e d e r a l d is tr ic t Federal Reserve Bank, Richmond, Va. April 30, 1940 Summary of March Business Conditions M A R C H witnessed a larger volume of retail distri to equal March 1939 figures. Contracts actually awarded bution than March last year, and industry was at made the same comparison, except that the March increase about the same relatively high level as a year ago, but over February was smaller and the decrease from March seasonal increases over February were in most instances last year was larger than the building permit comparisons. note quite up to expectations. Cotton consumption last month in Fifth district mills was lower than in March last year, but rayon yarn production RETAIL DISTRIBUTION LARGE and shipments were both larger. Coal production de clined further, but on a daily basis was still slightly higher Department store sales in the Fifth district in March in March 1940 than a year earlier. Changes in construc rose 36 per cent above February sales, and were 5 per tion work, textile operations and coal mining resulted in cent above March 1939 sales, but most of the increase some net decline in employment in the Fifth district in over last year was due to the earlier date of Easter this March. year. Because of cold weather, Easter trade was not up FARM WORK LATE to normal volume. Retail furniture sales were moderately higher in March than in either February 1940 or March Farm work has been delayed this year by unfavorable 1939, and sales of new passenger automobiles last month weather, and fall planted grains are in poorer condition were the largest for any month since July 1937. At than a year ago. The cold weather held back premature wholesale, distribution of goods in March was a little development of fruit buds and probably prevented damage higher than in the corresponding month last year. to apples which frequently occurs in mild winters and springs. It appears that some peaches were seriously EMPLOYMENT DECLINES MODERATELY damaged by April freezes, but the district average con dition is good. Sowing of oats has gone forward rapidly The value of building permits issued in March showed in the past few weeks, and in the extreme southern part a substantial increase over February valuations, but failed of the district some cotton has been planted. BUSINESS STATISTICS—FIFTH FEDERAL RESERVE DISTRICT % Cha,nge March 1940 February 1940 March 1939 Month Year Debits to individual accounts (25 cities).... $1,342,709,000 $1,189,136,000 $1,242,366,000 -f- 13 4~ 8 Sales, 31 department stores, 5th district.... $ 9,965,594 $ 7,334,877 $ 9.489,258 4- 36 + 5 Sales, 38 furniture stores, 5th district....... $ 1,049,111 $ 986,806 $ 995,135 4- 6 + 5 Sales, 200 wholesale firms, 5th district..... $ 12,559,000 $ 11,837,000 $ 12,386,000 + 6 4- 1 Registrations, new autos, 5th district......... 21,989 15,581 17,800 + 41 4- 24 Number of business failures, 5th district.... 44 46 59 — 4 — 25 Liabilities in failures, 5th district................. $ 500,000 $ 584,000 $ 560,000 — 14 — 11 Value of building permits, 31 cities........... $ 11,633,318 $ 7,092,770 $ 11,904,407 + 64 — 2 Value of contracts awarded, 5th district.... $ 31,542,000 $ 29,605,000 $ 38,946,000 4- 7 — 19 Cotton consumption, 5th district (Bales)...- 305,494 319,601 310,642 — 4 __ 2 Cotton price, cents per lb., end of month.. 10.50 10.74 8.48 — 2 4- 24 Print cloths, 39 in., 80x80s, end of month... 6.50 6.63 9 Rayon shipments,. U S. (Pounds)................ 29,500,000 29,500,000 26.600,000 0 4- 11 Rayon yarn stocks, U. S. (Pounds)........... 10,100,000 8,300,000 41,400,000 4- 22 — 76 Bituminous coal mined, U. S. (T ons)......... 35,400,000 39,105,000 35,438,000 — 9 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 2 MONTHLY REVIEW RESERVE BANK FIGURES SHOW LITTLE CHANGE Debits to individual, firm and corporation accounts in 25 Fifth district cities in March 1940 were 13 per cent Total earning assets of the Federal Reserve Bank of higher than debits in February, and 8 per cent above Richmond rose slightly between March 15 and April 15, those in March last year. Newport News again led in small advances occurring in discounts held, industrial ad percentage gain over 1939 figures, but Raleigh showed vances and Government security holdings. Federal Re the largest percentage increase over February. serve notes in circulation declined seasonally, and member bank reserve deposits were reduced during the month. MUTUAL SAVINGS RISE FURTHER RESERVE BANK STATEMENT ITEMS Fifth District Mutual savings in Baltimore continue to set new rec 000 omitted ITEMS Apr. 15 Mar. 15 Apr. 15 ords, and 10 mutual savings banks in that city had de 1940 1940 1939 posits totaling $223,163,689 on March 31, 1940, com Discounts held ........................... ................. $ 175 $ 113 $ 260 pared with $222,888,548 on February 29, 1940, and Foreign loans on g o ld ............. ................. 43 86 0 Open market paper ................. ................. 0 0 24 $219,931,668 on March 31, 1939. Deposits in 2 of the Industrial advances ................. ................. 915 909 1,177 10 banks declined during the year, however. Government securities ........... ................. 125,871 125,583 134,227 Total earning assets ........... ................. 127,004 126,691 135,688 Circulation of Fed. Res. notes ................. 218,615 221,028 195,287 Members’ reserve deposits . ................. 286,730 296,184 250,7% COMMERCIAL FAILURES FALL Cash reserves .............................. ................. 439,752 443,536 367,824 Reserve ratio .............................. 78.28 73.92 Bankruptcies in the Fifth district and the United States were reported for several periods by Dun & Bradstreet MEMBER BANK SECURITY HOLDINGS DECLINE as follows: Forty-one regularly reporting member banks in 12 Number of Failures Total Liabilities PERIODS District U. S. District U. S. Fifth district cities increased loans slightly between March March 1940 .............................. 44 1,197 $ 500,000) $11,681,000 13 and April 10, but investments in securities dropped February 1940 ....................... 46 1,042 584,000 13,472,000 substantially, principally in one large bank. Reserve bal March 1939 ............................ 59 1,322 560,000) 19,002,000 ances and cash in vaults also declined during the period, 3 Months, 1940 ..................... 148 3,476 $1,663,000 $40,432,000 3 Months, 1939 ..................... 192 4,091 1,647,000 53,374,000 but both demand and time deposits increased. SELECTED ITEMS—41 REPORTING BANKS EMPLOYMENT IN INDUSTRY DECLINES Fifth District 000 omitted ITEMS Apr. 10 Mar. 13 Apr. 12 Employment in the cotton textile industry declined in 1940 1940 1939 the district in March, probably more in aggregate pay Loans & discounts ................................ $268,947 $264,196 $237,298 rolls than in the number of workers, and the same may Investments in securities ................. 412,303 446,193 428,735 Reserve bal. with F. R. b a n k ........... 190,291 195,333 162,850 be said of employment in bituminous coal fields. On the Cash in vaults ........................................ 22,146 22,483 20,684 other hand, a seasonal increase in building permits issued Demand deposits .................................... 543,935 538,986 477,751 Time deposits ........................................ 201,144 200,459 200,421 and contracts awarded increased the amount of work Money borrowed .......................................... 0 0 0 available in construction fields. On the whole, there was apparently a moderate net decrease in payrolls and a DEBITS INCREASE SEASONALLY small decline in the number of employed persons in DEBITS TO INDIVIDUAL ACCOUNTS March in comparison with February. The following fig 000 omitted ures, compiled for the most part by the Bureau of Labor CITIES Mar. Feb. Mar. % of Change 1940 1940 1939 Month Year Statistics, reflect the trends of employment and payrolls Maryland in the Fifth district from February to M arch: Baltimore ............. $ 391,008 $ 343,749 $ 340,906 + 14 + 15 7,454 7,821 + 10 Cumberland ........ 8,213 + » Percentage change from 9,326 7,456 8,222 + 25 Hagerstown ........ + 13 Feb. 1940 to March 1940 Dist. of Col. STATES In number In amount Washington 287,345 239,885 272,053 + 20 + 6 on payroll of payroll Virginia .................................. +1.3 + 2.7 Danville ............... 8,019 7,609 7,089 + 5 + 13 Dist. of Columbia + 1.6 Lynchburg ........... 15,844 13,522 13,439 + 17 + 18 .................................. + 0.6 — 0.9 Newport News .. 11,519 11,067 8,893 + ^ + 30 West Virginia ............. .................................. — 0.3 - 3.0 Norfolk ................. 51,227 45,217 50,447 + 13 + 2 North Carolina ........... .................................. — 1.0 — 1.4 Portsmouth ......... 4,479 3,976 4,260 + 13 + 5 South Carolina ........... .................................. — 0.7 — 1.3 Richmond ............. 141,849 140,191 139,432 + 1 + 2 Roanoke ............... 28,527 25,801 30,089 + 11 — 5 West Virginia AUTO REGISTRATIONS ADVANCE Charleston ........... 47,474 46,355 45,373 + 2 + 5 Huntington ........ 17,102 15,441 16,366 + 11 + 4 Parkersburg ......... 10,344 8,290 8,884 + 2 !J + 16 Registrations of new passenger automobiles in the North Carolina Fifth district rose 41 per cent in March in comparison Asheville ............. 12,500 11,547 12,035 + 8 + 4 with February, and were 24 per cent above March 1939 Charlotte ............. 69.942 61,375 58,816 + 14 4-19 Durham ............... 26,575 27,885 26,375 — 5 + 1 registrations. Last month’s increase in sales over those Greensboro ........... 21,145 18,745 20,422 + 13 + 4 in February was up to seasonal expectations, and prob Raleigh ................. 44,158 34,973 44,645 + 26 — 1 Wilmington ........