MONTHLY REVIEW QF AGRICULTURAL AND BUSINESS CGNDITIGNS I1V TH E NINTH FEDERAL RESERVE DISTRICT Val. 7 ( ~~ai5 ) Federal Reserve Bank, Mirrneapolia, Mine. March 28, 1941 Business volume continued to expand during Feb- employment index remained unchanged from Janu- ruary and was at the highest level since 1930. Bank ary and was at the highest February level in our loans increased during the month. Farmers' Bash eight-year records. income in February was the largest Far that month since 1930. Building and construction contracts awarded in this district as reported by the F. W. Dodge Cor- BUSINESS poration totalled $4.6 million in February and were February business volume in this district, aside nearly double t}te February 1940 volume. Contracts from seasonal changes, continued tv expand and let far industrial building were larger than in Janu- was the largest for the month since 1930. During ary and were substantially larger than in any Feb- the last several years, business volume in agricultural ruary since 1930. Contracts for public utility and trade centers has been expanding somewhat more commercial building were the largest for February rapidly than in other cities. An indication of this since 1931 . Residential building was about ane- trend may be seen by comparing the February 1941 third larger than in February 1940 and the largest indexes with those far February 1939 in the table for that month since 192 7 . Hospital, public build- below. The index of bank debits at farming centers ing and social & recreational building contracts has advanced 33 points from 94 in February 1939 to were larger than in January and were the largest 132 in February 1941 while the 94 cities bank deb- February total since 193$ . The $i million of con- its index, which includes all the cities, farming cen- tracts awarded far public works construction in ters as well as other, has increased only 21 points February was nearly three times as large as one year from 99 to 1 20. The index of sales at country de- earlier but was smaller than in February of bath partment stores has advanced 23 points during the 1939 and 1938. period from 102 to 125 while sales at city depart- The valuation of building permits issued in sev- ment stores increased only 14 points from 97 to l 1 1 . enty-nine cities and fawns in this district in Febru- During February, the indexes of rural business--- ary was 2 ~a larger than during February 1940. Cities bank debits at farming centers, country check clear- from the Upper Peninsula of Michigan, Montana and ings and country department store sales advanced South Dakota reported substantially larger value. 7, 12, and 3 points respectively while the index of Lions than one year earlier. Minnesota cities reported lumber sales at country lumber yards declined a gain of 5 ~o but permits issued in reporting cities slightly from the unusually high January level. do in North Dakota and Northern Wisconsin averaged the other hand, the index of bank debits at 94 cities well below February 1940, The valuation of permits advanced only 4 points and city department store issued during the i'xrst two months of i 941 averaged sales declined more than seasonally. All of the 32 Iv larger than during the corresponding period above mentioned indexes were at the highest Feb- of 1940 with Montana and Minnesota cities record- xuary level since 1930 ox earlier. ing the largest gains. Department store sales in this district in February hlorthwestern Business Indexes were 3 ~o larger than in the same month one year ( i 935-39=100) earlier. City department stores reported a gain of Feh. tan. Fets. Feh. isat ts4t ts4a zees 4~o aver a year ago, and country store sales were Bank debits-94 cities . 120 ! 1 b 1 13 99 1 % larger. Sales at both groups of stores wexe the Bank de~its-farming center~ . i 32 125 1 T 7 99 largest for the month since 1930. Sales for the two Country check clearings . , . 137 125 121 102 months of January City department store sal~s . i i T 1 15 107 97 and February showed the same City departme~it stare stocks . 11 :3 114 1 I 1 102 increase over the corresponding period last year as Country department store sales . 125 122 123 102 the month of February alone. Stores in Montana, Country lumber sales . , , . , , 129 136 121 1 10 South Dakota and northern Wisconsin and Michi- Miace]laneaua carlvadinga . 122 133 103 95 gan reported sales Total carlvadings (cxcl. misccilancousl 300 95 95 87 gains over February 1940 but Employment-Mine. [ta3G-loGl 107 107 99 96 Minnesota and North Dakota stores reported de- Farm Pricc-Minn, [1924-2G-1001 T6 78 69 7D clines. CarIaadings of miscellaneous freight declined City department store inventories increased less more than seasonally during February but wexe the than seasonally fluxing February but were slightly highest for February since 1930, while the index larger than one year earlier on March 2$. Country of other carloadings advanced to the highest level department store inventories increased as usual dur- far the month since 1931 . Commercial and indus- ing February and were 3 °fv larger than one year trial employment as indicated by the Minnesota earlier. 276 AGRICULTURAL AND BUSINESS CDNDITIQNS March 28 . 1941 Sales at Department Stores year earlier. During the year "Commercial, indus- Hum6eraf Stores Cumulative trial and Agricultural Loans" increased $12 million, Showing ~ Feh. 1941 % f941 "Real Estate Loans" $2 million and "Other Loans" Increase Decrease of Feh.fa4p of 194G which are primarily installment and other consumer Total District . 125 i 52 103 1D loans increased $12 million. Investments increased Mpls., 5t. Paul, .Dul.-sup, , . 1 3 9 1 D4 104 Country Stores . ., . .112 143 101 f01 during February as hanks purchased the usual sup- Minnesota . 35 47 99 98 ply of Treasury bills and notes in anticipation of Central Minn. 6 4 l06 99 their customers demand far those securities at this N~rtheastern Minn . , . 5 4 99 97 season. Deposits increased slightly during the month Red River Valley Minn. 4 2 ! Q4 1D2 ~outh Central Minn. , 6 i 6 94 95 and at the end of February were shout $51 million Southeastern ll~inn. , . 8 7 1 Q 1 lal larger than one year earlier and the largest vn rec- Southwestern Minn, . , , 6 14 97 95 ord for that date. Montana ., . ., . Z3 2Q 1Dfi ia7 Mountains . , . , 8 5 1 I D lQ9 The reserve position of Ninth District member Plains . 15 15 1 D4 f06 by daily North Dakota , . 34 29 96 91 banks as indicated the average of deposits North Central No. Dak. 1 8 92 90 and reserves far the last half of February is shown Northwestern No. Dak., , . 4 2 102 9Z in the table below : Red River Valley Nn. Dak, 5 f 2 97 90 Southeastern Na. Dak. 3 7 93 94 Member Bank ReQuire3 Sxcese Red River Valley--Minnesota Reserve 37e'poait;a Reserves Reserves and North Dakota. 9 14 99 93 Cottnt~Y Iitcnka . ., . ., . ., . .. ...$ f,9,63(I,OpO $ 34,G4T,000 $24,9$3,OU0 South Dakota . 18 17 lU4 fD5 city Bank~ . .. .. ... .. ... ., . ..., . ., 1tu,44s,poo Ts,zsa,ooo sz,214,000 RG2Southeastern 50, Dak. : . 6 3 106 104 Total Ninth District (1941} . .$LG9,94G .000 $Ip7,7TB,000 . .197,ODp Other Eastern So. Dak. 9 9 104 104 Total Ninth District (1940) . i45,58p,pD0 98,8G~S,000 AT .187,000 Western Sa, Dak. 3 5 96 97 Wisconsin and Michigan . , . , 22 30 l0f l l} 1 Northern Wis. and Mieh. 9 14 iD0 iuz AGRICULTi7RE West Central Wis, . 13 16 fD[ 1Q0 Farmers' cash income in this district from seven Manufacturing production in this district in Feb- important products, based on terminal receipts and ruary, as measured by the following indicators was prices, declined seasonally in February but was the at the highest level for the month in recent years. largest fox the month since 1931, income from dairy Electric power production declined seasonally but products increased tv the highest February level was the largest February output on record. The in- since 1929, and income from hogs declined much dex of Minnesota manufacturing employment ad- less than usual and was the largest for February vanced slightly from January tv a level of i 0°fo since 19 31 . As a result of a sharp increase in potato above a year earlier and the highest in our eight- marketings and a moderate increase in prices, in- year records. Shipments of linseed oil increased come from potatoes in February was the largest somewhat and were the largest for February in our since 1937. Marketings of both bread and durum 22-year records. Flour production declined season- wheat as well as rye were unusually small and in- ally to slightly below February 1940, when flour come from these items was well below one year production was the largest for that month since earlier but flax marketinga were large, resulting in 193b. More lumber was cut in this area in February the largest February flax income since 1929. than in January, and it was the largest February cut Agriculhtral product prices at terminal markets since 1931 . in this district declined slightly during February but with the exception of January, were on the whole, EANKING the highest for any month since February 1938 . Country member bank earning assets increased Prices of all classes of cattle declined moderately $5 million to $405 million between the latter half but were nevertheless at the highest February level of January and the latter half of February after since 1930 .