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Federal Reserve Bank of Dallas
This summary of agricultural and commercial conditions In
the Eleventh Federal Reserve District Is Issued In the belief that
a concise review of trade will be of Interest to our member
banks. business men of the district and friends of the Federal
Reserve System.
The Information given Is obtained by the Federal Reserve
Ag.mt from various sources throughout the district. and In our
opinion the same Is reliable.
'l.'hose desiring the letter furnished them regularly will receive It without charge upon application.
DALLAS, SEPTEMBER, 1919
~rhe ag'itation over the high cost of living, advancl11g prices of commodities and other factors of an
unfavorable and disturbing character of which so
mUch has been heard recently have apparently not
affected general business conditions in the district,
According to our correspondents the v.olume of
~rade now being transacted at retail and wholesale
IS very satisfactory, the financial situation is good,
e
and the dullness usually - xperienced at this midsUmmer season is conspicuously absent.
There is considerable liquidation from the small
grain crop and this is having a very favorable effect
On business. The outlook for fall crops is not as
g~od. as a month ago, as cotton has deteriorated
Wlthl11 that time; nevertheless, we look for unusually large yields in the ,principal money-producing
commodities and see no reason to revise earlier predictions of a satisfactory fall business in practically
every line.
The condition of the cotton crop varies to a considerable extent; insects have
AGRICUL TURE done much dam age i n
the past thirty days. In the
b
lack land belts of north east and central Texas
the crop is fairly good an'd shows excellent foliag~
and fruitage . There is much complaint at boll
weevil. and Worms. In south and southwest Texas,
ex
cesSlVe rainfall has done great damage and much
of the staple has already been destroyed by boll
Worms and weevils.
Weeds are very rank ~n those sections on account of
excessive moisture and inability to work the fields,
e
and the crop w.il1 b- very disappointing as the result.
As th"
.
IS IS wntten the crop in the more favored sec.
bon show much improvement with the hot weath-
e
er. Authoriti- s report that if the weather continues
hot and dry for the next few weeks the crop will
be greatly benefited. Ordinarily at this season
there is an active movement of cotton in south Texas, but the crop is quite late this year and we do
not anticipate any activity before September 1st
01' later.
The outlook for corn continues very favorable. The
crop has not been materially affected during the
p'a st 30 days. vVe anticipate an unusually large crop
and it is practically already made. The increased
acreage will he from 10 to 25 per cent.
Rice is being harvested in south Texas and the crop
promises to be very good. There is a shortage in
acreage and the labor situation is not favorable.
The peach crop in Texas was the best in recent
years; the quality of the fruit was -excellent and
prices r- ceived have been very satisfactory.
e
Shipments from vVinnsboro were approximately 225
cars and sold at an average of $1.75 per bushel; from
Jacksonville 185 cars were shipped and the price
averaged $2.25 per bushel. Shipments of ripe tomatoes from Jacksonville aggregated 605 cars, selling at an averag- of $1.00 per crate, and 201 cars of
e
green tomatoes, bringing an average of 85c per crate
The month of August has not developed any
changes of interest in the banking
BANKING
situation. There is a good demand
for funds but it is being met without disturbance or inconvenience. The returns from
the small grain crop are having a favorable influence on the situation and deposits are steadily increasing as the result.
Banks in central and northwest Texas especially
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
are benefiting from the crop liquidation and the distribution of capital from the oil fields. Deposits
with those institutions are the heaviest of record and
the number of new accounts is very large.
Clearings at the principal cities in July show an increase of 45.9 per cent over the same month of 1918
and were as follows:
1919
1918
Austin ............................$
Beaumo nt ......................
Dallas ..............................
EI Paso ..........................
Fort Worth ..................
Galve ston ......................
Houston ........................
Shreveport ....................
Waco ..............................
10,640,065
5,538,525
74,579,287
19,994,890
52,268,968
17,695,788
50,284,369
8,270,678
8,000,000
Total ....................$247,272,570
$
5,829,187
5,602,929
117,304,130
23,182,306
73,917,492
35,874,800
76,783,347
13,045,934
9,312,000
Inc.
%
1936 $6,247,391
534.5
Tota1... ................. 1080 $984,559
-45.2
1.2
57.3
15.9 Range conditions are generally good and the outlook
41.4 .
in the cattle industry shows
102.7
LIVESTOCK
steady improvement. There is
52.7
57.7
some complaint of poor ranges
16.4
45.9
$360,852,125
-Decrease
A comparison of the principal items of assets and
liabilities on the books of member banks in the reserve cities, on the dates shown below, proves inter·e sting:
Number of member banks.................... 44
43
(000 omitted)
June 13 July 11
U. S. Bonds to secure circulation .................................................... $18,324 $18,723
Other U. S. bonds, including
Lib erty Bonds ................................ 20,414 17,513
5,138 4,231
U. S. Victory Notes............................
U. S. Certificates of Indebtedness .... 39,581 23,600
1919
%
1918
No. Valuation. Inc.
No. Valuation.
107.2
16 $ 20,785
Au stin ........................ 12 $ 10,030
30.3
99
139,539
Beaumont ................ 88
107,034
156 2,228,810 2,249.7
Dallas ...................... 50
94,854
422.2
101
236,170
EI Pa so .................... 74
45,224
931.1
179 2,043,495
Fort Worth ............ 60 198,180
196.2
577
47,962
Galves ton ................ 308
16,194
251.3
408 677,803
Houston .................... 197 192,927
174.3
253
51 8,955
189,178
San Antonio ............240
155.2
147 334,142
Shreveport ................ 51
130,938
43
Aug. 8
$18,727
18,418
4,289
31,835
Total U. S. Securities ...................... $83,457 $64,067 $73,269
Loans secured by U. S. Bonds, etc. 7,389 6,901
6,984
All other loan s and investments .... 187,614 179,339 188,041
Reserve balances with F. R. bank .... 19,668 21,395 21,630
Cash in vault ........................................
9,603 10,582 10,299
Net demand deposits ............................ 181,726 179,818 191,134
Time deposits ........................................ 30,228 30,772 30,431
Government deposits ........................ 10,882 6,015 14,554
Further progress is noted in the resumption of building activities during the month.
BUILDING Permits issued at the principal cities
of the district in July show a healthy
increase, both in number and valuation, over the
same month a year ago . While a large per cent of
the permits cover repairs and additions, rather than
new structures, in the larger cities at any rate, as
the figures below disclose, permits issued for new
buildings show a gratifying increase.
The demand for space, residential and business,
gr·eatly exceeds the supply and we' confidently expect a continuation of activities into the fall and
winter months. There is no immediate prospect of
a decline in building costs and present activities indicate that price levels are being accepted by those
contemplating work
in parts of the west, particularly in the Pecos section, where the rains have not been sufficient to insure good grazing for any length of time. Feed and
water are reported as plentiful in other sections of
the range country, however, and cattle are in excellent condition. All classes are bringing good prices
and if the cattlemen were able to finance themselves, which seems to be the outstanding difficulty
at this time, prosperous conditions should obtain in
the industry the remainder of the year.
There is much complaint of inability of cowmen to
obtain loans for restocking their herds. The banks
in the cattle country are carrying large lines of livestock paper and are unable to take on new loans.
It is also impossible to obtain the needed assistance
from the commission companies. This is forcing
heavy shipments on the markets and means a sacrifice of breeding stock.
Drouth conditions for the past thr·ee years have
created a heavy shortage of cows, and unless relief
is afforded in the present situation we may see a
further depletion of herds.
Favorable reports are received as to hogs and sheep.
Prices obtaining for both animals are the highest
ever recorded, heavy hogs selling at $21.00 to $22.50 ;
first-class wethers, $12.00; breeding ewes, $12.00 to
$15.00; lambs, fall delivery, $8.00.
Lumber manufacturers report the demand greatly
in excess of production and furLUMBER
ther advances in prices. While
mos.t of the mills report adequate
supply of labor, it is of an inefficient and indifferent
character, and agitation as to wages and working
conditions is rife . The belief is expressed that mill s
are trying to stabilize prices, but due to disturbing
conditions very little has been accomplished in this
direction. The heavy crop movement has caused a
ser·ious shortage in cars.
The outlook for heavy demand for fall and winter is
favorable. The situation is so uncertain, however.,
~hat the mills hesitate to predict conditions very far
the future, heyond a very heavy demand for the
output.
III
Manufacturers of food products, clothing, textiles,
and other principal comMANUFACTURING
modities, are enjoying a
volume of business fully
25% ahead of the same period last year. Reports
are ~nanimous as to scarcity of raw material, inCreaslllg costs of production and a very unsatisfact~ry si~uation as regards labor. The demand for
hlgh-pnced goods continues to increase, notwithstandl~g the abnormal situation and agitation over
the pnces of commodities.
The operations of the sulphur mines of south Texas
are lighter than in 1918, due to the
MINING
extraordinary demand of our own and
..
allied governments for the product for
~ul1ltlOn purposes prior to the signing of the armis1ce ; otherwise, the activity of the mines compares
avor.ably with a year ago and the outlook for the
rema111der of 1919 is satisfactory.
i
:rhere i~ no surplus of labor but no special difficulty
IS expenenced in maintaining sufficient workmen.
Production in the Ranger and Burkburnett fields
continues heavy and prices are high. ReOIL
ports vary as to the labor supply; in Burk'.
burnett the supply is ample, while in
WIchita Falls a shortage is reported.
Bfsiness of every description in those cities and the
ac Jacent towns is of record vol ume and there seems
to be ~o evidence of diminution in activities. Con~ervat\:,e authoriti- s report that the petroleum ine
ustry 111 the Ranger section is in its infancy' with a
0ven ter~jtor:r of possibly 75 miles in length and
Ito .15 mdes 111 width, which has been developed
on y In places wher·e the production is laro'e it
would seem that the activity is just commenci~g:
10
1'he retail distribution of seasonable merchandise is
satisfactory and exceeds last year's
volume. The outlook for the next
RETAIL
sixty . d~ys is favorable, except for
TRADE
the dIffIculty of securing deliveries
of stoci{s.
SpeCifically, reports on the principal lines disclose the fOllowing:
Frniture: The volume is in excess of last year cash
~i~les :rery he~vy and the demand for high-pric~d ares l11c r easl11g. Outlook for fall favorable.
~t8eries:
The volume is very heavy and exceeds
. ' cash sales heavy and the demand for highpnced goods and fancy and imported stocks increasIng; outlook favorable.
Hardware: The volume is ahead of 1918, cash sales
increasing; demand for higher priced goods heavy
and the outlook is favorable.
Men's Clothing: The volume greatly exceeds
1918, cash sales heavy and the demand for highpriced goods is greater than ever before; outlook for
fall very favorable.
Women's Clothing: The volume is heavy, cash
sales exceed those of 1918 and the demand for better
grade of merchandise is increasing. The outlook for
fall is favorable.
Shoes: The volume exceeds the previous year, cash
sales ahead of 1918 and the -outlook for fall is favorable.
A very general inquiry among dealers in important
lines dev- lops that the volume
e
WHOLESALE
of business is very heavy.
TRADE
The trade has evidently grown
accustomed to advancing prices
and activities are limited only by the inability of
houses to fill orders.
e
Special activities ar- noted in the following:
Drugs: In wholesale drugs the volume of orders
is heavy, with prices advancing and excellent collections. The prospects for fall are very favorable
and t.he demand for the better class of goods is increas1l1g.
Dry Goods: The volume exceeds 1918; prices advancing, collections very good and the demand for
high-priced merchandise increasing. The outlook
for fall is good, but the question of prices for future
deliveries is very uncertain.
Furniture: Volume is heavy and exceeds a year
ago; prices are advancing, collections good and there
is an increasing demand for the better grade. Outlook encouraging.
Groceries: Measured in dollars and cents the volume is heavier than in previous years; prices are advancing, but it is believed in Some quarters the
present regulatory measures and sale of army supplies will force a decline. Collections are exceptionally good at present. Dealers enjoying a large
country trade anticipate rather slow collections until the liquidation of cotton is begun. A satisfactory
fall busi ness is expected provided the present agitation does not cause the consumer to defer buying
in antic.ipation of lower prices. The future is very
uncerta1l1.
Hardware:
The volume is very heavy; prices are
The building activity
IS creat1l1g a very satIsfactory business and the demand for the better grade of material is quite noticeable.
~rm, w~th collections. good.
Millinery: YOlume is good, prices advancing, with
good collectlOns. The demand for better grade of
goods shows an increase.
r
STATEMENT OF CONDITION OF THE
FEDERAL RESERVE BANK OF DALLAS
At the close of Business AUGUST 22, 1919
RESOURCES
Gold coin and certificates in vaulL._ .. ___ .__ ______________________ ________ __ __ _ ______ ____ _________ ____ ___ ____ ________ _____ ______ ___ _____ __ _ $
__ __ ____ _ __
__ __ ____
_ ___ _ _
Go Ids e t tl en1 e n t fun d ____________________ .___ ________ ______ ________ __ ____ ____ __ ____________ ___ _____ _ _ ____ ___ ____ _
__ _ _____ ________
___ ___ ___ __ ____ _ _ _________ ______ _ ______
____ ___ __
Go td re dem p tion fu n d___________ __ __ _________ ___ _ ________ __________________ _ _____ _______________
___ ______
___
___ ___
_________ __ __ ______ _ _______ ___ ____ ____ ________
___
______ _
____ _
Gold with Agent for retirement of F. R. Notes ________________________ ________ ________________________ ____ ______ __ ____________________________ ____ ____
10,676,010_00
4,743,848_ 62
2,451,555_ 00
16,488,240_00
Total ________________________________________ .. _________ _ .. ______ .. _
_____
_____
____________ .. __________ ____ ________ ________ _____ :__ ___ _ _____ ________________________ ______ ______ $ 34,359,653_62
_
_ ___ ___
Legal tender notes, silver, etc _____________ ________________ __ ________________ .. ______ ____ ____ ________ ...... ________ .. ____ ____ ____ .... __________________ __________________
Other cash and cash items ____ ______________ ________ .. ________ __ ____ .. ____ .. ______ ______ ____ ____ __ .. __ ________ __ ________ ____ __ .. ____ ____ ______________ ____ __ __ .. __________ ..
2,144,741_89
3,298,087_75
Total ........ __________ .. ____ _ .. __ .. _____ .... __ .... ____ .. ____ .... ______ .... ___ .. ___ .. ________ .. ____ __ ______ .. ____ ___ _ _____ .. ______ .. _________ _____ .. ____ .. __________ ...... __ .. __ $ 39,802,483.26
____
___
5% redemption fund-F. R. Bank Notes... .... __ .. ____ .... __ .. _________________ .. __ __ ______ .... ____________ __ ____ .... __ ________ .. ________ __ .. __ .. ____ ______ ____
Bills discounted-members ________________ .. __ .. ______ ____ .... _____ .. ______ .. ___ .. ____ ______________ ______ __ ____ __ ________ ___ _
____
_________ ______ __ ____ .. __ .. ___ _____ ___ _
_
Bills bought in open markeL __ ____ __________ _ .. _______ .. __ .. __________________________ ______ __ __________________ ____ __ _____ _____ __ __________ .. ______ __________ ________
__
459,800_00
59,060,022_90
810,609.00
------
Total Bills on Hand _______________ .. _ .... ______ .. ____ .... ________ .. __ .. ____________________ ____________ __ __ __ __________ ____ __________ __________________________ ________ $ 59,870,631.90
._
In ves tInen ts-U. S. Bon ds ______________________ .. ______ .. ________________ ____________ __ _ _____ ____ __ .. ____ -_________________________ ______ _ ________ ________ __
____
_______
..
U _ S. Certifica tes of inde btedness __________ __ __________ .. ____ .. ______ .. __________ ____ .. __ .. ______ .. __ ____ ______________________ .. ____________ .... ________ __________ __
3,966,000_00
6,300,000_00
Total earning assets ________ ........ __ .. ____________ .. ____ .. ____ .. __ ________________ ____ ____ ___ _____ -------- ----------------------------------...-------------------.. -- $ 70,136,631.90
Federal Reserve Banks-Transfers Bought -(net) ...... ______ .... ____ __________ ______ ____ ____ ,.... ____ __ __________ __ ______ __________ .... ________ _
2,053,628.24
Checks and drafts in process of collection ____ .. __ ____________ .. __________ ____ ________ ____ ______ ______ __ __ ________ ________ __________ .. ________ .. ____ .. ______ __
14,519,120_70
Due fron1 other F. R. Banks ___ .. _________ .. ______________________ .. ____________ .. __ ____ ____ ___ _____
________ __ .. ____ ____ ______ __ ________ ______________________ .. ______ __
1,259,942_61
All other resources ____ ____ ...... ________ _ ____ .. ______________________________ .... ______ __ __ ________
_______
_______________ __ ___ _ ____ __ .. ____________ _____ ___ ____ ______ __
_______
____
824,301 .65
To ta I Res 0 u rces ____ _
_________ ____ __ _ __ ____ .. ____ .. __ _ .. ____________ .. ___ _ ____ ___ __________ ________ __ ____ _____ _
_______
____
___ _____
______________ ___ .... ________________ __ ___ $129,055,908.36
LIABILITIES
Capital paid in __ .. __________ .___ .. _________ ...____ ______________ .______ .. __ .__ .. ___ .. _ ______ ._______ __________ ___ ______ __.... _ ._._ .___ ._ .__ .._ __ __ ____ $
______
____
.
__ ______ _ ______
__
____
Surp Ius _________ .. _
________ __________ .. _
____________________ .. ____ .. _____ .. ___________________ ... ______ ____ __________ ____ __ _____________ ,__ __ ________ _________ ______ .___ _ ___ ______ ____
__
_ ..
Governn1en t deposi ts --.. ----------------------.. --.. ----.. --.. __________ .. ________________ __ _ _____________ _____ ___ _____ :______ .. ___________ ____ __________ ____________
___
____
..
Due to member banks' reserve accounL ______ .. __ .... _______ .... ____ .. ____ .. _ _ __ ___ .. __ .. __ .... ____ .. __ .. __ .. _ __ .... __ .... ___ .. __ .......... __ .... ____ ..
____ ..
....
Deferred credits, account checks and drafts in process of collection_ .. __ __ .. _ ________ .... _______ .. __ .. ______ .. _ ____ ...... ____
......
..
Federal Reserve N ot.:s in circula tiOll __ .. ____________________ .. ____ ... ___ .. _________ ____ .. __ __ _______ ____ _ ____ ___________ .. _______________ .. ____ _ _________ .. _____
..
..
F_ R. Bank N ote circulation __ ________________________ ____ ___________ _________________ .____ __ ______ ___ ________________ ____ __ .. ________ __ .. _______ .___ __ _____ ____ .. __ ____
__
..
Foreign Governl11en t cred its ---------------------------------- __ _________ ___ _______ _ __ __ __________ ____ ___ .. ____ ____ _____________________ ______ ____ ____ __________ __
______
All other liabilities ________________ ___________ .... ________ __ .. _________________ .. ____ .. __ . ____ ____ __ _______________________ _____ ______ ____ ____ .________ _____ __ __ ______ ___ _________
_
3,293,300.00
2,028,868.33
3,140,021.34
45,744,541_46
16,241,822.81
46,806,875_00
8,811,950.00
2,010,945.46
977,583.96
Total Liabilities . __ . _____________ .. ________________ __________________ .. __ ______________ __ __ ____ _ ________ ____ ____ . ___ ___ __ ______ __ ___ ______ .. ____ .. _____________ __
_
_______
___
$129,055,Y08.36
Rediscounts with other Federal Reserve Banks __ ______ ____ __ __ __ ____ __ ____ ________ ___________________ _ ____________ ______________________ _ _ $ 2,000,000.00
__
____ ___ ...
OFFICERS
W. F. RAMSEY,
R. L. V AN ZANDT,
Federal Reserve Agent.
Governor.
LYNN P. TALLEY,
Deputy Governor-Cashier.
':HARLES C. HALL,
PAUL G. TAYLOR,
R. BUCKNER COLEMAN,
"\55t. Federal Reserve Agent.
Assistant Cashier.
Assistant Cashier.
FRED HARRIS,
DWIGHT P. REORDAN,
Assistant Cashier.
Assistant Cashier.
@FedFRASER