Evening star., 1942-06-01
War Curbs Produce
Spotty Conditions
In Fifth District
Richmond Bank Reports
Some Lines Rushed,
Others Slack
BY the Associated Press.

oy tllS hooOSldNtO 1885,
RICHMOND, Va, June 1.-Dis-
ruptive effects of the war economy
showed up in spotted" conditions
in trade and industry in the first
Federal Reserve district in April,
the Federal Reserve Bank of Rich
mond reported.
Industries which are able to tie
into production of war materials,
banks monthly report said, are
banks monthly report sadi, are
working to capacity, and distributors
of consumer goods are very busy
insofar as they can obtain merchan-
disc to sell.
On the other hand, many kinds of
goods have been frozen, ratiOned, or
withdrawn from markets because
their manufacture has been for
hidden, and dealers depending on
these articles are of necessity laying
off their statesmen, and in an in
creasing number of instances are
closing their shops or stores.
Most Plants Busy.
The bank reported that fifth dis
trict Industries, except few which
use critical material, but have not
been able to shift to some kind OF
war work, operated full time during
April. Cotton textile mills converted
additional looms to the manufacture
of heavy goods needed by the armed
forces. and set a new monthly rec
ord for cotton consumption in the
district at 468,454 bales.
Construction continued at near
record levels, and contracts awarded
during April totaling s9l 1886 ,00(
reached the fifth highest amount
ever reported for one month. How
ever, the Government has intimated
the report added, that the volume
of new construction for war purposes
will be substantially decreased here
after, attention being concentrated
on the conversion of existing facil-
tiles to war work. In the interest
of conservation Of materials, private
construction has been severely
limited and little private work can
be undertaken unless it fits into the
war picture.
Coal production in April exceeded
March production by per cent
and was 720 per cent above April
l941, when bituminous mines were
closed by industrial disputes.
Rayon mills and tobacco factories
continued capacity production, and
shipyards in the district we're work.
ing around the clock.
Distribution Changes.
Interesting changes" the report
continued, are taking place in the
distribution of goods to consumers
The distribution varied widely with
the types of merchandise handled
Stores handling wearing apparel
foods, and other articles which have
not yet been seriously interfered with
by Government regulation, are doing
a very large volume of business, but
other stores handling a larger
volume of restricted articles or good;
made of critical materials are be-
} ginning to exhaust stocks without
any chance to replenish them. Store:
| specializing in hard goods are facing
virtual disappearance of their mer-
chandise from the markets, and ir
many cases there are no substitutes
for the unobtainable articles, the
bank reported.
In agriculture, crops in many sec.
tions of the fifth district have beer
retarded by lack of moisture, but or
the whole the farmers have done
reasonably well with crop planting
and prospects about average. Labor
is scarce in rural areas, but members
of farm families are increasin,
their work and taking up much O.
the shortage in hired workers.