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~llIIIIUIUIIIIIJUlillnIUItIIIIUIIIIIIUj J IIUI" I II"lIInllffllllllllliIlfIllUlIUlllltllll IIltUIIJIIUllllllnlliIUII IlUJIIIIlI IIIlIlIII1UIlIJ.UnWltltlIlUIIIIIIIIlUIIWWHlHlIJl1iW1I111IWlllm,IIIItUlllIllWllIJIIJIIUUlIWUUJJUJUJlJl l mU1JJJlltllIlIllIJIHIIIIIII I IUIII I I I IIIIIIIIIIIII I II""II I IIIII " !. E. !fIUUIIIIIII.llmIlUIIIIIIIIII.IIII11I1I1UlIIIIIlUIIIIII IIUl1llf1I11I11II11IU1rtIllUUlltll llruIlUllillllUilinUlllmUllllllllllll1111UIIIIIIIIUllllllllllllllllllllllullllillmll1111111111111111UJUlllllllllll111111111UlllllllltlllfltnllltllllllUIIIIIIUUIIUIIUll11ftilm il UJUlllllhl iIUlIUI IIII"'I III",!; §: MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS IN THE ELEVENTH FEDERAL RESERVE DISTRICT FEDERAL RESERVE BANK OF DALLAS w. F. RAMSEY, Chairmen and Federal Reserve Agent CHAS. C . HALL, A.sistant Federal ReserVe Agent (Compiled February IS, Iq.a.a) E ftIIIIUlllltlUIIIIIlIUI\IUJJtllIllU'IUUUlJUJUUI IIUIlIIllUlllnllll'lIIlIIlIlIIUllllllltiIItlUIlIIlIUIIIIIIIIIIIIIIIIIIIIIIIIIIIU'"I1I1I1II111I1I1I1I1"IIUlIIIIIIIIIUtIUIIIUHItIlUIIIIIIUIIIIIIIUII,lIIll1mUtllllllllllllllllllltllUIIIIIIIIIIIIIIIIU1111IlImjUIIIUIlUllllIlllllIlUlllnunlllliiU,lInr.' E -IIIIUU I IlIIIIIIU1Ult1l1mnmUIIIIIUI11111II1IIIIUllllfllllllIIIUIIIIUllllllllliiIIUlIlIUIIIUUIUlUllDllltullllll lllllUllIlIIl1I IlllIIl llllIllIIl lllIlIlIlII lUlIIll1IUiIIIIlIll IIIIlUlIIIIIIIIIIUIII' IIIIIIIIIIIllIUIIIIIUIIIIIUIIII,IIIIIUIIIIIIIIII1IIIIIIInl llllllUllilliliitrihliUllUllllllihlllllnUllillUIUl Volume 7 061185, Texas, March I, 1922 No. I GENERAL SUMMARY A survey of the changes which have occurred during the past month in the Eleventh District's industrial and business situation would seem to warrant the belief that the forces and influences which are making for recovery are slowly but perceptibly gaining headway against the counter currents of adverse conditions. These forces are being centered upon the task of bringing into play the recuperative powers that lie in the district's natural resources-its farms, cattle ranches, oil fields, and mines, whose products can be converted from potential to actual wealth as rapidly as the channels of distribution and consumption are able to absorb them. Among the institutions which have gotten their houses in order for this task, and (for the first time in many months) are in a position to contribute their full quota of assistance, are the banks of the district. While banks in some of the agricultural communities are heavily burdened with loans carried over from 1921, as a whole the district's banking position is much stronger than a year ago. Member banks have reduced their indebtedness to the Dallas Federal Reserve Bank from a total of $89,000,000 on January 31st, 1921, to $45,000,000 on January 31st, 1922. During the same period our adjusted reserve ratio has risen from 23 per cent. to 48.5 per cent. Credit conditions in the livestock industry are being appreciably improved through the advances made by the War Finance Corporation, which has to date loaned a total of $12,000,000 on the products of Texas ranches and farms. Reports from Arizona, New Mexico and West Texas indicate that trading in cattle and sheep for ranch stocking purposes has been revived on a larger scale than has been witnessed in many months. From Arizona and New Mexico have also come definite announcements of plans to reopen in February and March a number of the mines and smelters which have been idle since the close of the war. Building activities in the larger cities of the district underwent a remarkable expansion during the month of January, when permits were issued for construction work estimated to cost $4,960,000, this being, with one exception, the largest total on record for the month of January, being more than double the total for the corresponding month of last year. The approach of the planting season on the farms finds the farmers planning their crops for the year and endeavoring to map out a production program which will yield them the food and feed necessary for their SUbsistence, as well as a cash return sufficient to relieve their straitened financial condition. While the winter rains have not been as copious or frequent as desired, there is said to be an excellent "season" in the soil, and the general outlook for crops is encouraging. The labor situation has shown no substantial change aside from the recent termination of the packing house strike at Fort Worth. Unemployment has decreased in the building trades, but is still quite noticeable in such enterprises as cottonseed products plants, railroad shops, mining, lumber and metal trades, and among the r!.mks of clerical and unskilled workers. The active demand for crude oil has further stimulated drilling activities, January production in the Eleventh District having exceeded all previous records. Distribution in retail and wholesale trade has been characterized by much irregularity. Wholesalers of apparel, dry goods and fa:tm implements reported a healthy increase in the movement of goods, while in other lines the volume of trade about held its own or fell slightly below the December record. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY REVIEW OF BUSINES S AND INDUSTRIAL CONDITIONS CROP CONDITIONS Farmers in the Texas Panhandle and other wheat growing sections of the district report that winter wheat, which has been making poor growth on account of the lack of moisture, was benefitted by recent rains. It is quite apparent, however, that these rains came too late to materially augment the production, and it is generally recognized that the crop will be far short of a normal one. Conditions are poorest in the Panhandle, where the drouth has been worst and where 55 per cent of the Texas crop is usually produced. In North Texas, where rainfall has been more generous, the condition of the crop is somewhat better, and with favorable weather during the remainder of the growing season the yield in that section is expected to be fairly satisfactory, although the acreage there, as elsewhere in the district, has been greatly curtailed this year. if not the only crop capable of producing any income of consequence. The heavy reduction in the winter wheat acreage caused by unfavorable weather conditions last fall is responsible for a great deal of unexpectedly idle land in the grain belt this year, and reports from that section are to the effect that much of this land will be planted to cotton, spring wheat, oats and row crops. Reports show that the vegetable and truck crops of the Coast and Rio Grande Valley have so far escaped damage from killing freezes. The winter precipitation has been sufficient for the needs of these crops, and, generally speaking, they promise fair yields. Cotton Exports The export movement of cotton Decline through the port of Galveston for the month of January was 218,053 The cold rainy weather occurring early in Febru- bales, which compares with the December total of ary caused a temporary halt in the preparation of the 261,512 and the January, 1921, aggregate of 316,880. soil for the new cotton crop, but was welcomed for The falling off in the movement this year is atits beneficial effects in furnishing the needed "sea- tributed to a number of causes. Exporters point out son" or subsoil moisture, with which the fields are that the movement is reverting to the prewar trend. now said to be abundantly supplied. While freezing During the years immediately following the war the temperatures have frequently occurred in the north- heaviest movement came in the spring and summer, ern part of the district, it is generally believed that which was formerly the dull season in the matter of the cold waves which have visited the district so far cotton exports, and the present tendency would inhave not been sufficiently severe and did not occur dicate a return to this condition. The decrease in early enough to insure the district against another volume of outgoing cargoes as compared with a year disastrous visitation of the boll weevil this year, for ago is attributable in part to the shortage in producunless killing freezes occur early in the winter while tion of the past season. The influence of the price the insects are still above ground, large numbers of situation is also a factor, as a year ago the market them are able to hibernate successfully beneath the was declining rapidly, and growers were anxious to surface of the soil. The possibility of another influx dispose of their product as quickly as possible in of boll weevils this year, similar to that which estab- anticipation of a further slump. lished a new record for destructiveness last year, seems to be playing a prominent part in cotton acre- ~ COTTON MOVEMENTS THROUGH THE PORT OF ~ GALVESTON ~ age plans now being made by the farmers of the dis- ~ ~ AUB". 1st to Jen. Slot ~ trict. In the matter of planning their cotton acreage § January January Tlib LASt § 1922 1921 Season s..uon ~ the producers have apparently reached the point § § Gross Receipts ...... 179,195 283,399 1,787,5441,955,409 § where they are forced to recognize the weevils as a § Exports .................. 218,053 316,880 1,693,538 1,709,348 § potential consumer of their raw product second in § Stocks, Jan. 31... ... ._ .... _._ ... _._... _...... 336,693 365,147 § importance only to the cotton mills themselves. In ::nlTffflTII III IIII11II11I1IIII1I1I11DUlll llfIllIlIIlIllU II I,IU11ItlllllllllUll ll flllIllrnlll ll mIUl1frrllll lllllllllllll!lmlnIlJIIIIIIII!m"UI ~l llIIn;t addition to this problem there are other practical difficulties which beset those farmers who under other circumstances would be inclined to hold their 1922 cotton acreage to about the same proportions as last year. Their economic position is such that every acre of land they control must be made to yield its In compresses ....................................... . share of income or sustenance this year if possible, and in many sections of the cotton belt the nature Total ..... _......................................... 336,693 355,147 of the soil is such that cotton seems to be the best !lIIIIII IIIHlllltlIIIUIIIIIII1I11'lIIlIlIlIIlllIlunm'hIlIIJIIUITlUlUlllUlUllllllUlItflUIIIllImlll'IUUlllUlilllllnniIUlUllrlmlllllllll\tlllll!! F" G,.a:A::':T~::~:~~:~~~~~ '~;i~:'8 i ~ul1lll1I1I1IUIllIUJUllllmUlUIU1UlII1I11UUlmUJJlIlIl1lfnnlllllllln1Jlllnllllljll1l11l11urnnlllUlIIIlIItIllIl IlIl ,mUlIIII!IlIlIlUIIJllIIII1!: J := _~ ~~~ ~~~~~if:i'foJs~~~:::::::::::::::::::::::: 2 718i":9~2rlg 303~46,:t6!043: ~ :; IInll 1111111' lIun IIUUlIl1l1U1I11I1UlIlIl1l11lUlffl!111 lum II"'IJIII' 111111'1 lIun IIIUU 111111111 II II nu Inu .. II nil .. u tllIl' IIII unll n JllIIUUUH! 3 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS ~nllmlIlIlHlllJUlmITIIlnnllJ"nfllIt1TIlIUtllnOnlTlllnfmmnmmnnllnmlllllllflrunn1 I IIIlIIIIItIllIllTlliilllllllll1ll1l1l1ll11m"UII~ ! i I This ~ Receipts since Aug. 1, 1921.... _ Exports: Great Britain .......... ~ France ...................... I 3" Ii SEASON'S RECEIPTS, EXPORTS AND STOCKS AT ALL UNITED STATES PORTS Last t99B82782~,311376 41~,0 a29s86':2,9 094 _ 420,291 383,391 § 1,177,584 1,451,689 3" ~~i:rr~~i:~::i~~~: ::i~~:~g ~:~~~:~~~ Stock all U. S. ports, Jan. 31 I - I ~IUIUIUUIfII'IIIUIIIUIUlllllll1lnIIllIIJlIIIUUlll llllrnilllluIllIIUIIIIIIIUIllIIIIIUIUIUUUlIIIlIIlLUIIIIIIIIIJIJIHWllIIJIIlIU1IllUIJUIlU 1 .. Grain Movements January grain receipts at the principal grain centers of the district showed a substantial falling off as compared with those of December, as will be seen from the table reproduced below. Wheat exported through Galveston for the month of January aggregated 1,070,507 bushels, falling below the low mark established last year during the month of December. Total wheat exports through this port since July 1, 1921, have amounted to 38,586,625 bushels, which is some 4,000,000 bushels below the record for the same period in the previour season. I ~o ~;-~ Cotton ?t\ 0111"1 60 QO 100 :.!lflllllrtnnnrnllllllUfUIII1IUIllIllIIIlIIfIUIIIIIIIUll1I1I11IIl1IU1UllllllnrUII1JlIIUIIUhnIllIllUlI1IIIIIIUhrlIllUIIIUlUinTlIIIIIUIIUIUIe: I~r=:~~;~;;;~~~;::RE~~~~~~ I S;rIIlUIIIIIUltlllliIItUIIU lll lIlIIllIllIIl1II1I1ITf1IUIIIUIIIIIIIUllliuUIIIUIlIUIIIIIIIUIIUuhllllllllllllumlllnllll llllldl Ul lllllnl lllllm nu~ Texas Crop Values According to the United States Department of Agriculture the market value on December 1, 1921, of ten leading Texas crops was $350,500,000.00, as compared with the aggregate value of $587,621,000.00 for the crops produced in Texas in 1920, as measured by prices in effect on December 1st of that year. These figures show that Texas farmers suffered a 40 per cent loss in the value of their leading crops last year as compared with those of 1920, cotton leading in this decline with the total of $177,100,000.00 as compared with the previous crop's valuation of $286,789,000.00. Changes in the relative value of the state's leading crops for the past two years are graphically shown in the appended chart. 120 140 160 IRO 700 2'20 ?4.1"l 0;>..." ?rlO 1920 1921 Co.n 1920 19"21 1920 Gram So'!j'hums 1921 Wlwat 1920 1921 Ooh 1920 1921_ Hay '93)~ 1921_ s.-t A>r..too.!920 D 1921. RICe 1920c:::J 1921. AUl1wts I"",. o. 19;:> • 19?0 'I! . IQ?t1 4345 ITT 100 2B6 789 CotCon ba~ Corn Ixtsh 156920 142 ti6 2 Gram ~IWml bu$~ 56550 60992 2.3 "6 73 BOO W'h "t bush 20810 20579 20 lIlO 35396 Oats bulih 33570 32780 13092 2.1 '*'1 1:Q7I~ / lOS 991 /0906 13620 ~"""t Fbt4t045 2200 94737 119' B36 ns w!SlI 8' 200 9 9"1:; 6970 1296B /?/ce bu," 5 596 9554 5652 f\anllts lb. 123825 IZS 2BO -4 2.10 " 942 "15/1 3 S37 4118 ~~:!.'l Potato•• bu.II 2. 072 n~~IM 19200 1921. 19200 L"/Sh R;tac""s • 1921 V .. 192' I TEXAS CROP VALUES, 1920 AND 1921 I 872. I ",II(] 4 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS LIVESTOCK Winter rains thus far have not been sufficiently frequent or abundant to materially relieve the drouth from which the district's ranges have been suffering for several months. In New Mexico particularly such grass as is to be found on the ranges is dry and no green feed is to be found. Considerable feeding has become necessary in that state, as well as in Arizona and West Texas. But little loss of livestock has been reported as a result of cold weather, and despite the poor grazing conditions cattle and sheep are wintering well. There have been scattered rains in Western Texas, but Texas as well as New Mexico and Arizona need rains badly for stock water as well as for the benefit of pasturage. WHOLESALE TRADE Unevenness in recovery was the distinctive feature of the wholesale trade situation during the opening month of the year 1922. Dry goods sales scored an increase over last month, as well as over the corresponding month of last year. The movement of drugs and farm implements showed a substantial gain over the previous month, as well as a closer approach to the level of sales reported a year ago. Grocery sales remained at practically the same level as last month, but showed a more unfavorable comparison with the corresponding month of a year ago than was in evidence during December. Hardware and furniture sales underwent a sharp The general price situation at the decline from sales of last month, and while furniPrices and Movements Fort Worth market displayed more ture showed the first decrease from a correspondstability during the past month than ing month of the previous year since September, has been in evidence for some time. A feature of the 1921, hardware registered the largest decrease remarket was the pronounced strength in sheep, lam b ported in several months. This irregularity is not and hog values, which registered substantial gains surprising at this time in view of the uncerover those of the previous month. Sheep commanded tainties of the present price situation, which has not a maximum price of $7.50 as compared with the De- yet shown sufficient stability to dispel the doubts cember "top" of $5.25. There was a lively demand existing in many quarters relative to the probable for sheep of the feeder class for shipment to north- future course of the primary markets. Another ern pastures. Fed lambs sold as high as $11.25, which view of the situation is that some of the lines have was $2.00 above the maximum recorded in the previ- not as yet reached the period of renewed activity ous month. that follows the usual "between-seasons" lull. This There was not much change in the volume of cattle is particularly true of the furniture trade, which exreceipts, the total for the month being 39,432, which perienced during January its first reaction since is not much more than one-half of the volume of re- signs of recovery were first in evidence during the ceipts usually recorded in the month of January. The early fall. Despite the uncertainties of the price demand for hogs continued unusually heavy through- situation, fears regarding further radical price deout the month, notwithstanding a sharp increase in clines have apparently passed and distributors are receipts. turning their attention to the more important problem of gauging as accurately as possible the purFORT WORTH LIVE STOCK RECEIPTS chasing power of the general public during the coming year. Conservative merchandising operations January December Lo~s or January Loss or 1922 1921 Gain 1921 Gain continue to rule in all branches of trade and buying Cattle ........ 39,432 32,303 G 7,129 34,256 G 5,176 for immediate requirements appears to remain a Calves ........19,409 23,578 L 4,169 28,934 L 9,525 characteristic feature. Reports from some quarters Hogs .......... 50,321 26,598 G 23,723 32,155 G 18,166 Sheep ........ 37,571 33,949 G 3,622 11,115 G 26,456 to the effect that the available supply of certain com~.mml'lIInIIIiUlulllllllllnllllhIIJli1l11111111I1UIIIIIIIIIIIIIIIIIIII"1II11If11lll11llIIlIIlllIIlIIlllIlItlllllllllllllttllllllllJ)DlIIlIIlUIIIIIJIIIII~ modities are scarce and will likely produce a shortage has produced very little effect in goading traders into anticipating their future wants beyond well defined !_: needs. They are still adhering to a policy of conservative action and are basing their demands upon - Beef steers ............................ $ 6.85 $ 7.50 $ 9.00 ~ Stocker steers ........................ 6.00 5.00 7.80 ~ actual requirements rather than upon speculative possibilities. Bad debts and poor collections continue as a big problem in all lines of trade. Credit :..;2°1 !5 men are showing more caution in the extension of = Sheep ..................................... . 5 5 credit, and are making a sympathetic study of the 11.25 9.251 Lambs .................................. _ ~ 5 financial condition of their customers. ~lmllnnllllll lllllllt IUlllulmlln ll lUln rtIUIIUllluflllllllllullllnllllllllillllllllllll"HUlfllllllltllflllllllllUIIIIIIIIIIIIIIIIIIIII I IUlll l un:; -:!IlIllIlIlIllmUUIHI,mtlllUUl l rIIUlilIInHlllUllltnruUII,uIU,rrnnl'IUII'11IIIIIIII III IIIIll l lII"IIIIIII II IIIIII, IIIIIIIIIIIIIIIII1III1111UlIlIlJe I gtIlIl I UIIIlJIllIIIIIUtllIlIlUIIIIIIlIIUUt I IllIIIIIlIUIUlIlllllt ll llllllllllllllWllli.iJJ1IIULWIIII III IIIlIIIIIJJIII,Ullllltlln"lIf1UIIIIUIllIlIll I I1~ COMPARATIVE TOP ~:,;'=TOD~~IC:;'~~~ ~jf~7T~::: 87~:. ;5 :o~ 1 1 78~1: ·g~ O i=-=_= ~ I MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS Dry Goods Renewed activity after the year-end lull characterized the wholesale dry goods situation during January. Early in the month the retail dealers began placing orders for goods to restock their depleted shelves, as well as sending in some orders for spring delivery. This increased movement of goods which was in evidence during the early part of January remained fairly steady throughout the month, and since January 30th, at which time the formal spring opening occurred, sales assumed even larger proportions. January net sales of twelve firms were 37.3 per cent above those of last month and 8 per cent greater than sales during January of last year. The January percentage of increase over the corresponding month of the previous year was about on a par with the percentage registered a month ago, which would seem to corroborate the general opinion of the trade that from now on business is going to be in a greater volume than during the year 1921, especially since the opening of spring will likely bring some renewed activity in the agricultural sections. The retailer continues to cling to his policy of exercising caution, conservatism, and prudence in making a careful selection of stocks. A further recession in the price of raw cotton and the unsettled condition of the raw silk market has been a disturbing factor in the price situation. Furthermore a renewal of wage cutting in the cotton goods industry has produced a tendency on the part of the entire trade to slow down purchases until wage scales are again stabilized. 5 reached a peak during the closing month of 1921, with sales 5.4 per cent greater than the previous month and 50.8 per cent greater than December, 1920, suffered a reaction during January and sales registered a decline of 28.1 per cent from December sales and 5.9 per cent from January, 1921. This, however, represents the belated coming of the between-seasons dullness which did not appear as early as usual this year. The retail dealers have been making a special effort through big reduction sales to dispose of their surplus stocks and have been giving special attention to this phase of the work rather than the placement of new orders. Furthermore, most dealers do not make heavy purchases during January, but hold off until the yearly exposition is held and new price quotations are made. The main items purchased were those on which special prices could be made so as to make the item a leader for their reduction sales. Dealers began purchasing about the first of February and indications are that business has been improving somewhat since that time. Farm Implements The net sales of reporting far.m implement firms during January reflected an increase of 43 per cent over sales of the previous month but a decrease of 29 per cent from sales during January, 1921. This latter figure compares with a decrease during December, 1921, of 52.8 per cent from sales during December, 1920. While sales are now steadily increasDrugs The renewed activity in the wholeing from month to month, and are showing a closer sale drug trade which was evident approximation of sales of the previous year, it should immediately following the opening of the year conbe remembered that since the depression struck this tinued in sufficient volume to bring the net sales of trade during the fall of 1920, sales decreased steadily eight drug firms up to 4.9 per cent above those of until the summer of 1921, showing enormous dethe previous month. The decrease from January, creases from the sales of the previous year. Since 1921, was 16.2 per cent which again reflects a more the summer of 1921 considerable irregularity has favorable comparison with the sales of the previous been evident and sales have fluctuated widely from year which has been in evidence since July, 1921. month to month. For some time the farmers have The above percentage compares with 19.2 per cent purchased only such implements as they were in dire registered last month. There is no prospect of an need of, consequently their real needs have become early change in the retailers' buying policy, as they more and more acute. At the present time the continue to buy only staples and in small quantities. farmers are in need of many implements, and they They seem to have no disposition to deviate from want to buy but their financial condition is such that their former policy of buying merely for their imtheir purchasing power is at a low ebb. However, mediate requirements. The price situation has shown they seem to be purchasing to the full extent of their but little change. The few declines that have been ability. Although no strong demand for implements noted on certain items have been about equalized by is anticipated until the new crops are ready for the advances on other articles. market, the recuperative power of the trade until Furniture The wholesale furniture trade which that time hinges upon the improvement of the crop has enjoyed a steadily increasing outlook as the spring advances. Some firms report volume of sales throughout the fall months and a reduction in prices during January and others MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 6 report material reductions on some items since the first of February. Groceries The wholesale grocery trade during the earlier part of the month showed considerable strength but later experienced a falling off. The net sales of twelve firms showed only a 2.4 per cent decrease from sales of last month, but were 17.6 per cent less than during January, 1921. January is always a quiet month in this line of trade, and the volume of sales this year was larger than was expected. This was probably due to the fact that a considerable number of dealers permitted their stocks to become badly depleted during December and had to buy more extensively in order to fill in depleted stocks after the first of the year. Price advances on some commodities followed the brisk demand early in the month, but soon showed comparative steadiness. Most canned goods, with the exception of tomatoes which showed a sharp rise, remained steady. Higher prices were quoted on sugar and some grades of beans. The increase on beans followed the clearing up of the year's stock which gave evidence that the available supply would probably be somewhat short. However, prices seem to be pretty well stabilized and the advances or reactions are apparently due to the visible supply and demand rather than to a general trend. Hardware January net sales of eleven wholesale hardware firms showed a 22 per cent decrease from last month and a 26.6 per cent decrease from the same month a year ago. The hardware trade seems to be later than usual in emerging from the dull season of the year. However, some encouragement is being derived from the renewed activity in the building industry and the potential demand for seasonal goods which should materialize in the near future. Prices are still somewhat unsettled in the primary markets, as evidenced by the fact that some factories have shown a tendency to make a slight advance in quotations, while others have shown a disposition to make concessions on large orders. Some dealers state that collections were comparatively good during January, but have been very poor so far during February. !'JIIIUtlUl\u II IIIULUIWltI1l1l1lUlIUI"umllUIIIIUllltlIII II UlUIIIUlII I IIlfUIIUUIIII11II1II1JHlIIlIIUIIUUIlIlJUUUlIIIIlWIIIJlIllIIJJIUIIIIUUII,U ll llllll ll lrmnnUIi I IfIllII1 I IUUlltllIllUIIIIII."lUlltllIIUlllmn~IIIIIIUIIIUIUIIIIUlIIIIIUlUllnUlt1lnll ll mUlll l lU lll l lI lIU lll l l uulnny ~ ! ~ ~ ~ NET SALES Jan. 1922, !~~pared with is: Jan., 1921 Groceries .................................................................... _ Dry Goods ................................................................ i § ia CONDITION OF WHOLESALE TRADE DURING JANUARY, 1922 Percentage of Increase or Decrease in ~::!W~~l~~~~t~. :::::::::::::::::::::::::::::::::::::::::::::::::::: I ~~~~~tu~.~ -17.6 + 8.0 ~~:g Dee., 1921 - 2.4 +37.3 +~~:~ STOCKS Jan. 1922, .:.~~pared with PRICES pared with Jan. 1922, Jan., 1921 JIUI .• 1921 Dec., 1921 -17.1 +21.8 + 3.9 +25.0 -32.7 - 2.3 ':'i: - 24..1 ~5:~ Dee., 1921 I~ ~ ~ - 1.0 ~ -10.0 a - 9.0 I ...:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: =1~:~ ~::~ "":17:4 -":'-':1 ~.::: :::::::: ~ ~IIUIlUIII IUUIIlIlIllUlll lllllll llnlullllluUlIIIIllUIlUUIllUll llllllllllnlll 1II1111111UliUUllUIIIIIIIIUlllill fU,IIJrlIII111UIIIIIIII IIIIIIIIIIIUJltlUII1UIIIIIlIIIIIIII IIIIIII lIIllIIlllInWl11l1l11UlllllUUllllUllllIIlIllUllIIlllIlIIJUllIIlllIUIIHlrllIlIIUlllIIUlI1IJ1I1 III11III1I11I1UIIIIIIIIIIIIIIIIIIU; RETAIL TRADE Cut price sales featured the retail trade situation for the month of January and during the first week of the month proved to be one of the bright spots in general business. Then reaction set in and further reductions seemed to lose some of their usual potency in accelerating the movement of goods. Reports from twenty-two Texas department stores reflect a decrease in net sales of 19 per cent from those of the corresponding month of 1921 and 49.8 per cent from December sales. That this shrinkage in trade is largely due to seasonal conditions is evidenced by the fact that these stores reported the same percentual decline in their January sales as compared with December that they reported for January last year. As January is recognized as a "between-seasons" month, too much emphasis should not be laid upon the dull condition of department store trade at the present time. At the same time, retailers are taking due cognizance of the diminished public consuming capacity, and are continuing their efforts to liquidate high priced stocks as far as possible by reduction sales. On the other hand, the popularity of these bargain sales is not as mq,rked as in normal times, as the consumer is showing a tendency to look for new and more attractive merchandise, his demands running principally to seasonable, staple and popular priced goods. It is generally felt that with the resumption of activities in agricultural communities in the early spring, there is prospect of more definite improvement in business. Stocks on hand at the end of January were twotenths of 1 per cent greater than those on hand at the end of December, but were 1.2 per cent less than those on hand at the close of January a year ago. The dealers are again taking their inventories on e 7 MONTHLY REVIEW OF BUSINES S AND INDUSTRIAL CONDITIONS the basis of replacement values and are writing off the loss so as to establish a proper relationship between the inventory price and the sales price. The ratio of stocks to sales for the month of January was 475.6 per cent as compared to a percentage of 357.5 during January, 1921, and 444.5 during the last six months of 1921. The slower rate of turnover this January reflects the smaller volume of sales, as stocks were practically the same as last year. The ratio of outstanding orders at the close of January to total purchases during the calendar year 1921 was 8.3 per cent which compares to a percentage of 7.5 at the end of December. ;!ItllI1UlIIrnnlll111ll1l1l1l1ll1l1l1l1l1l11l1ll 11 1l1ll1LU1I1IIUIIU1II11U1ll11l1l1l11l1l11U11I11I11I1IIIIIIIJIUIIIIIIJlIII III IIIII IIIU,IIII IUlIII UIIIIUU.! = = i= § I I= BUSINESS OF DEPARTMENT STORES ~ Net Sales- ~ Increase i! St"t~~~~~·'=22:'~mp~~'d f~~:~~;;2~'~~:;~":~:T:~~~~:' :: I :it~J""~",,,::_ i = January, 1922, compared with December, 1.2% + .2 % ~ Ratio of stocks to sales............................................ 475.6% 3 1921 .....______ ___ __............... _.... __ ............ __ ... _.... _..... ____ I Rati~h~~e~u~.~~~~~~~~ ~~~~.~.~ ~.~ ~.~.~.~ ~~~~:~ :..~~.~ I .. .. .. .. .. 8.3% Ratio of January collections to accounts rereceivable, due and outstanding January 1, 1922 ...................................................................... 38.2% __~ ~ ~ § I ~dlJlmllJJlInIJIUlIlIllIUIItt11IIUIUIIIIIIIIIIIIIIIIIIIIIIIIIUlllll1llml1nlllrbllllll'llImlbllllllllllllllUlIUUlllIllIUlIllIlIIUlIllIUlIlIIUUfr FINANCIAL Bank clearings at eleven cities of this district after showing a slight upturn last month again showed a decrease amounting to 2.4 per cent. While clearings increased at six cities, the larger centers registered declines which caused clearings for the district as a whole to show the above decrease. The combined total for reporting cities amounted to $289,675,- 374.00 during January as against $296,859,371.00 during December, and $344,824,115.00 during January a year ago. On the other hand, the weekly average of charges to depositors' accounts during January showed an increase of 1.3 per cent over the weekly average for December, but a decrease of 9.1 per cent from the weekly average for January, 1921. !1111tt111111111t1l1l1l1nmIllIIllIllIUlUIIlIlIlUlIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIUIlItIIIIIIIIUIIIIIIIIIIIUUIUUUUJJlIIIIlli11111U1JI11II1I111IJHIJIIIUI1IltulllllllllllllllllllllllllllllllllUUIIIII1l1lIIUIIIIIIlUllllllllilll1t!JIIUAIUlIIl1IlllIlIlIlllIIlIlllIIlIIlIflllllllllllllU lllllll lnmnmllllU IIJIIlJmUi -_I E BANK CLEARINGS I nc. or Jan., 1922 Dec., 1921 Dee. I Ine. or Jan., 1921 ~ Dec. j ~::!:o~t···~~::::::::::::~:::::~::::::::::::::::::::~::::::::::::::~::::::::::::::::::::::::::::::::::: $ Ui~:~~~ $. ~:~I~:~~6 + ~:~ $ ~:g~~:~g+ +2t~ ~= ~ i ~il~:s~~~:~:::::::::~:::~::~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 1~~~~~:~~~ 1~g:~~g~~g + ~:~ 1~~~:g:~~g =i~:g E I ~~r;e:~~t~:::~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~~~~~:~~~ ~~:i~~:~~~ I ~~~t A~~~~~~::::.::::·::::::::::: ::·:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 2~:~~~:~~~ 2~:~~~:~~g + 19:~ + t:~ ~~:g~~:~~~ ii:~ ~ 3~:~g:~~~ =lg:~ I ; ~~:~e:.~~~.:: : : : : : : : ::: : : : : : : : :: : : ~:::: : :: : : : : : : .: : ::: : :: : : : : : ::: : ~g:~!~:~~: i~:i~+;g~g t I:6 ig:~~~:~~~ =1~:~ i 3 Wichita Falls ...................................................................................... _ 7,447,734 7,697,827 3.3 13,703,278 -45.7 ; ! i Totals ........................................................................................ $289,675,374 $296,859,731 2.41 $344,824,115 -16.0 ~UmllllJlnIlUlUtlIIIIIIIIIIJIIUIiUlUlUlinillllluu"IIIIIUIlUJJJlJnIUltU1lll1iWJ1IIIIIII1IJlII1tUlUltltlllltllltlllllllllllllillUIIllllllillllUUUlHlIIIIlUlIIIIIIIIllIlilIunlUl~IIIIIII1I11'tllllllll""lllllIlI1nllllffllllmUl llnUllnmIIIIUUIul lnmll lullllnllulllllllln ruuulllll1UIIUlIIII ,i i.umiUlIllIIlUIIIIIIIIIUlllltfllIIUntll,llIlIlIl1l1UUII1I1II11II1III11I1III1UIUIIIIIIIIIIII1IIIIIIIIIIIIIUlIlIIlIlIllIllIlIlIIIIIlIIlIlIlIlIlIIlIlIll IIIIllI"IIIIIIIIIIIIIII I""11111IIIlltlUIiUlillUJlJ.lUlJUlIllWUJllnllllllllllll lflllll lllltlllllUlUlUlIlIlllUJilUllU1IIIlnltllll11II1IIUUUl llimUlUIllUfllU!:! CHARGES TO DEPOSITORS' ACCOUNTS A VERAGE W EEKLY DURING January, 1922 December, 1921 January. 1921 Albuquerque .............................................................................................. Austin ................................................. _..................................................... Beaumont ........................................... _..................................................... Dallas ................................................... _..................................................... EI Paso ..................................................................................................... Fort Worth .......................................... ............................................ ......... $ 1,840,000 2,876,000 3,520.000 36,073,000 8,093,000 32,531,000 $ 1,861,000 2,876,000 3,212.000 35,384,000 7,941,000 31,230,000 $ 1,872,000 3,562,000 4,424,000 39,062,000 8,299,000 24,058,000 _ Texarkana, Texas .............................. .................................................... . Tuscon ..................................................................................................... . Waco ......................................................................................................... 3,674,000 3,620,000 4,386,000 $147,976,000 $146,098,000 161,808,000 ~ !_-=~: tg:~1~;-·:-~---·~:-.-:::~·~: "' ~;~6,.:~72:~6;~2:·0 :o ro ~o ~it~:;6i~90t6',: ~gJ g ~1 ",1528~3):·!0!O !0 I-=_ ~ 'E ~ . Totals, Eleventh District.................................................................. ~ ii ~ illllUIIUUI1 III11Ul lliul lm.lnnlllllllUlIIlllIlIIUlllllllll lmUlmlltlllllllllJII IIU1IIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIItIllIIlIllIUIIIIIIIIIIIII III I,Ulllllllll lllmlll1IIIII IIIIIIUUUIIIIIUIIIIIII IIUllIIIUU Il\IUIIUtlltllIlIlIllIlIIIIllIIIlIUIUUJ"11I1U1Il1ll1l11lUllUlIIllUlIlIllJ l1lIIUIIIIllIU IIII! 8 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS Acceptance Market The volume of outstanding bills executed by banks of this district showed a sharp decline during January. The total amount of acceptances of Eleventh District banks reported outstanding on January 31st was only $2,325,007.57, as compared to $4,251,692.35 on December 31st. Of this amount $1,025,962.22 was held against import and export transactions, while bills amounting to $1,299,045.35 were drawn against domestic shipments and storage of goods. Bills held by the Federal Reserve Bank of Dallas on January 31st amounted to only $15,000.00. Reports from reserve city banks showed a reduction in loans and investments amounting to $8,913,000.00 while there was a shrinkage in deposits of $1,071,000.00. Their bills payable with the Federal Reserve Bank decreased from $12,687,000.00 on December 28th to $7,740,000.00 on January 25th. The ratio of loans to deposits has been gradually decreasing since the summer of 1921, when this ratio reached 114 per cent. The ratio at the close of December stood at 108 per cent, but had declined to 104 per cent on January 25th. Condition of Reserve City Banks. ~~mllllmIlUIIIIUIUUIIIIIIIIIIIUIIUlUUIIIUlltiUIUIIIIIIIIIIIIIUIIUIIUUIIIIIIIIIIIIUllllllllllfrnllllllllfllllUllIIlllIUlIlIlIlIlIlllIlIlllIUtll ll llllllUllllIlIHllllllllltlll11I1I1I11(IIIIIIIIIIUlUJUlI' U111f1I1 IiIIlUU UlIUmli l lfIll IIIl IllIlI IUUUII'IIIIIIIJIIIIIIIIIIIIIUltIllIIIIUliIU IU IIII~lruIUl li ~ ~ ~ I_ :: ~ i I = ~ CONDITION STATI STICS OF MEMBER BANKS IN SELECTED CITIES Jan. 25, 1922 Number of reporting banks ...__........._....... _.. _.._ ............._.. __ ...... ___ ..... _. u. S. Securities - .................. _.............. __ ........................... - ....... _...... Loans secured byowned U. S. Wal' Obligations ............................. _....................... All other loans and investments. ....._....,.__ .... Net demand deposits ... _ .. _ ...._.. _................... _ .... _........................... _ ._...... Reserve with Federal Reserve Bank............ ,.~ ~ ~. Bills payable with Federal R!'lserve Bank._ ......................................._.. _ ..._. Percentage of loans to deposlts...... _. __ ........... __ ._ .... _..... _ .............. ._..... O-• • _ _ . . . . . . . . . . . _ H __ ••••• ••• • •••••••••• • § Jall. 28. 1921 Dee. 28. 1921 53 51 52 $1399~",0~779~1,:0~~0000 $230.9~,2:~9~899':0~OggO $214~2:,0754~000:'000gogo ~ ~__ ====:3==_. • •• ••• __. ••••••••• • • • • • • • • • • _ . . . . .. . . . . . . . . . ......... 190,998,000 20,597,000 7,740,000 104% 192,069,000 21,215,000 12,687,000 108% 210,912,000 23,891,000 33,401,000 ~ 108% _ iUll lllltUlllinmUlllUUllllJUlUlHllllUl1 llllUUlitlllUllllllllllttll1 llltlUllllIUJJHWIUUUIIIIIIIIIIIIIIIIIIUUIIIIIIIIIIIIIlIlIIIIlIIlIlIllIlIllIUIIIIIIIIIIIIIIIIIIUUIIIIIIIIIIIIIJIIIIIUlIIIIIIIIIIIIIIIIIIUUlIIIUJIIIIIIIIIIIIIUlIIIIIUIIIIIIIIII1IllUIIlnllll111111UUIliIIUUllllUIIII1IIIW11I1I1IllUlUli Operations of the Federal Resene Bank The lessened demand for accommodations by banks in this district is reflected in the rise of our reserve ratio from 43 per cent on December 31st to 48.5 per cent on January 31st. This rise is ..A:m fib. ,+fay Allr. }1a~ JUTllJuf~ AuQ. Stllr. CXt oJf,rs 90 gO 70 1'" ",/" - V 1\/ . -" / / ~ iV ,..- / V~ / .) ~ ....... V 40 ItO \ / 100 50 NoK Dec...bn reh f<1ar AD,.. Mar June July AI./(]. &til. Oct. NOJ( Dec. Mrill»71s (\ 110 60 accounted for by a decrease in loans and the corresponding decrease of Federal Reserve note circulation. The close relation between our loans and our circulation is strikingly shown in the appended chart depicting their fluctuations in 1920 and 1921. \.... ..-, I.,., ~tl"" '\ I'" i'-.. V/ r:f{j ral ~ .100 'sef~ NQtL C'fCU p-t,Olt \, "tsllz f,d1"9 Iro Me rnber ~»G flanlls '" '" 90 80 1" - "'- ~ I'--. Y\,. -- /' r-J '-- \ \ 70 r-- '- " ......... '-- :-..... . -... .......... 60 '" 50 40 r-- 30 30 20 20 10 10 o IQ 2ll '9 21 o 10 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS difficulties, but when this failed bankruptcy was inevitable. Furthermore, the keen competition which was manifested in widespread cut-price sales following the Christmas shopping period evidenced the fact that business houses which were unable to reduce both prices and costs to a minimum were in no position to do business side by side with stronger competitors. There is presented below a table showing commercial failures according to Federal Reserve Districts during January, 1922 and 1921. .::tIIlUltnllttllllllllllUIIIUmll1lttmmlllunurmullllIIlIl1l1UrrmlllllllllllTlllUlIlIllIIIllIItlIUmmnl1l1l11l1fllllnl1l1l11lllll1l1ff1llmlUIIIIIUlmUUlllllllllllflllllllllll llU1l l11mnlllllllllll lUIIIIIIIUlilnUItlIUlUIIIIIllIlIIIlIUI'IIIun IIIllII IIllIllIIIIUllllllnUUIIIIUUIIUlU'I lrtlUI,L: ~ ~~~i~~~.......................... .................................................................................. !i_ New york.................................................. ........................................................... Philadelphia ........................................................................................................ E. ~ COMMERCIAL FAILURES DURING JANUARY ~ Cleveland ........................... ....... ........................................................................... § Richmond .............................................................................................................. != ~ Atlanta ............ ..................................................................................................... ~ Chicago ................................................................................................................ St. Louis ............................. ................................................................................ § Minneapolis ......................................... ..................... .......................................... ;; Kansas City .................................. ...................................................................... il DALLAS .............................. _...........................___ ._ ...._.....•. _.. _ .......... _......... § San Francisco........................................................................ _.______ _ § i Total U. S._...._ .. _ ... ___ ........ _ ..• ___ ...... ___ ......_.... __..._..... _.... N OMBER I..JABlLlTIES l~~~OO,442 429 136 242 233 283 36.2 177 109 112 207 244 192\83 390 96 133 142 195 222 126 48 82 155 123 22,885,754 2,561,559 6,238,303 4,696,036 5,01.2,931 10,314358 4,013,092 2,597,637 3,400,430 4,326,594 5,148,644 2,723 1,895 $73,795,'780 1922209 $ 1;:~41,114 9,808,623 2,183,908 6,661,913 3,887,908 4,054,436 9,182,523 2,370,168 583,858 1,767,286 3,359,871 4,435,023 $52,136,631 § I E~ ~ § __=i_, ~ = ~ 3 § ~ § ~ ~tullluulllllnmUlUlmUlWmDlUllIJllIUUlUllllmullllulllllllllllll1llllllllllllllllll"lU ItllnlllllllllllUllllffllUlIIltnUlnllll1f11l1mUIIIUnUlll,lIlllltlUmUlIIlIIlllfmmnmllUlIlIlII1II1lII11UlIIIIIIIIIIIIIIIJIIUIIIIIIUUllllm,umIIIllIIUIUIWIIIIIIIIIUIIUWUWllllltUJIJlllllllln PETROLEUM January crude oil production in the Eleventh District amounted to 14,916,130 barrels, breaking all previous records and registering an increase of 1,496,380 barrels over the December production figure. The rapid development of the Mexia field resulted in an increase of the daily average yield of that field from 104,530 barrels during December to 148,571 barrels during January, and was responsible for the total gain in the Texas production. Stephens County showed a decrease in the daily average output, due partly to the extremely bad weather prevailing in that section, and a falling off in the initial flow in the new wells brought in. The Midcontinent field, which includes the states of Texas, Oklahoma, Arkansas, Louisiana and Kansas, also showed another increase in the January yield, and owes this increase to the Eleventh District output, as the gain in Oklahoma production was more than offset by the decrease in Kansas and Arkansas production. Texas assumed first place among oil producing states during November, 1921, and has remained in the lead since that time. January reports indicate that the Texas production for that month will increase the lead by an additional margin over the California production. Drilling Results. There were 299 new wells completed in this district during January, of which 212 were producers, as compared with 285 completions during December, which included 203 producers. However, the wells completed during January were smaller producers, which is shown by the fact that the initial flow during January was only 259,188 barrels as against 328,984 barrels during December. Drilling activity in the Mexia field included the completion of ninety wells, but only fifty-five yielded production. These figures which show the ratio of failures to producers to be steadily rising would seem to substantiate the statements of some that the limits of the field were becoming more definitely defined, but recent developments show the bringing in of several producing wells in the outlying districts, which would tend to contradict these statements. Stephens County witnessed the completion of 39 wells, of which only six were failures. Crude Oil Prices Steady Prices for crude oil showed but very little change during the month of January; the only change noted being a decrease in the posted price at the Orange field from $1.25 per barrel to $1.00 per barrel, which was put into effect to equalize prices on the different grades of crude oil in that section. However, prices show a more favorable comparison with a year ago, due to the fact that at this time of 1921 crude oil prices were showing rapid declines, reaching the lowest point during the summer of 1921. e 11 MONTHLY REVIEW OF BUSINES S AND INDUSTRIAL CONDITIONS ~UIIUIIIIIIIIIIIUUlIllIllIIllIltUlIIIUllllullllllmru"l1lllllllmllnIlIIlUUUIIIIUIllIIIIIIIIIItUllllllllllmmlIWUIII1IUlIl1lhllllllllllllllllUlnllllltlttllllllllllllllllllllllllllnllllllllllllllUIll11J1HUJ.uJUlUIIIDnlltJillUJJUlllUUIIIIIlWIIIIIIIUUUlIU Itf UJUUIIIIUUlUllllll l llllf iil llIIU~ OIL PRODUCTION ;Ttul uary Total Total Daily Avg. Field N orth Texas .................................................. _ Central-West Texas ......... _._ ...__ ... _ .... _. T exas Coastal --- ......- ..... ..... .... - ......... 2,017,410 6,825,5 30 3,126,446 65,078 220,1 78 100,853 2,011,135 5,690,250 3,183,415 T otals, Texas ................................................. N orth Louisiana ........................................... 11,969,385 2,946,745 386,109 95,056 10,884,800 2,534,960 14,916,1 30 481,165 13,419,760 ~ ~ - ~-. ~ T otals, 11th District ......................__ ..... _... iillUl lll lllllllrrllIIllllIlIJIlIiUll llIUllUllIIlllllIIUllUIIJUUllilillUlIJmnmlllllllll1IIIIIITII I Increase or Decrease Deeember Daily Avg. ToW I Daily AVIl. 6,276 Inc. 64,875 Inc. 183,556 Inc. 1,135,280 Inc. 56,970 Dec. 102,691 Dec. 203 36,622 1,838 351,122 Inc. 81,773 Inc. 1,084,1>85 Inc. 411,785 Inc. 34,987 13,283 432,895 Inc. 1,4.96.370 Inc. 48,270 E lilliIllillwnUUUlIlIIlIlIllIlIlIUlIlIIlllltIlllllllllllUlllIIllIlIUllUlIll lUlUUlllllllllllUllllUlllmIIIIP11I1IIIIUIIIIIHfIIllUIIUUIIUlIIIlIIIIIIIUIiUlIIIIJUlUIIIIUi Ii IUluullUumrunrl1l11um; I !!l1l1nlln I IUlnllllll~lllllIlnIIUllll l lllllllllllullmlUl lllllllllllllflmllllllllUUlI IIIIIIIHllnl'lflllunlllUllnllllll lll lllll l lllltl ll lllllUlIIUllUUIIIUIII IIIUII ItIJII1IIIIIIItlllU lllilil l llllll lll llli ll WIIIIIIIIIUIIUllllllllll11111 111nnllll lll ili Itlllllll lliIlIIlIIllIIIlIlIlI I IllIlIlJ I 'WJUJ[WlUlIIII~ FI.ld JANUARY DRILUNG RESU~~~".;O"' P..... o.~ I Y.,,"~ P.::~:~. North Texas .... _ ............. __ .... _. ___ .__....... _._._.. _._.............. _........... Central-West Texas ..... _._._ ._....... _ _ ............. _........ __ ............ __......... .. Texas Coastal _................._ .._ ...... _.... _.. _...... _....._. __ ._........ _ _ .... _.. ~ Texas Wildcats _ .......... _.........................._._ .......... _... ____ .... ___............ _ 69 137 24 11 64 94 18 Totals, Texas - _........._ .... -_ .... __ .. _-._ ....... _._ ..... _.... -_.._ ... North Louisiana ............. __...__..._ ..... _ .. _ ........ _...... ._ ._._.... _ ......... _... 241 58 166 46 75 12 22362',6 3 585 _ January Totals, District ... __ . __ ._._............ _....... ______ ._ ...... _...... _....... December Totals, District.. ................................. _ ............. _ ._.. _._ ... _ ... _ 299 285 212 .203 87 82 269,188 328,984 § ~ ~ I .. - ; ~ 16 7,552 ~ 43 194,961 ~ 6 2-4,090 .. 11 ................ _.... ~ ° I = I ~lIInUllltlllllll.*III11UtttHllllU[WlTIIiIUIIUUlll ltlUlU.I IllIlIII11II1I1I1WllUlIIIIHtIJJ"1II1ItnlllllIlIlIl1UmlUlIlIIlIlIlIIlI1l1l1l11f1UIIIII'lIl11t1UmmlllllUlllmntnrIllIIIrlUmIllIllIlIJIIIIIIUUIIlliulun[llnlllU"lllIIilIIIIIIIIIJlllnUlIIIII.IIIIlW.tlliJJWUlUllltJItIllJlUUllmUllulllI~~ Ullllll llllflllllllll1Utlllllll1l1l1l1lll1ltlllUlIlIlIlIUIIUllllllmUlIllIUllunnnrUlIIlIUlll1ml1lUIiUllIIlJIJllIlIIDWIllumUlllllllllnnllllUlllllUIlUJIUJllIIllIlIIlIllllWllllllUlillUlIIllUUlll1II'UllllIIIIIIIIUIUIIIIIU llIIlIIllIIIIIIIIIII1I IUliUl llrDlmIllJUl1JllIlUJUIIIJl llll lllll llUlIllUII'! Mexia ................................................................ 1.25 Haynesville (34 gravity and above) .......... 1.85 ;: All other Texas fields .... __ .............................. 2.25 3.00 De Soto Crude .................................................. 2.00 2.90 ~ ~llnlnllnUJlIIllIIIIIIIIIUJJIlIlJUIIUlIllIIIIUIJUllllllllllllllllnmIIiItHW1U1111II11lI11IIU1lnrIlUlUUllIIllIUIIUlIIlIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUflIIJIIUIllIIlIlIlIlIIllUiIllIllIUIIIIIIIIIIIIIUllfllflUlllUlUUWUIInlUlIlIIUIIUIUUrllllllIllllllllttLUlllJlIlIIlUIIIUlIlIIllIUJlllIIllIllIIUUIIUI~ (Oil Statistics compiled by The Oil Weekly, Houston, Texas) LUMBER ) I f A slight decline is reported in the January production rate of southern pine mills, the output for the month being 16 per cent below normal as compared to 14 per cent during December. A sharp decrease in shipments was evidenced by the fact that January production was 29 per cent above January shipments as against 15 per cent during December. However, new orders came in at a good rate, being 27 per cent below normal production as compared to 31 per cent during December. With new orders increasing and shipments lagging, the unfilled orders on the books of 41 mills on January 31st amounted to 44,667,936 feet, whereas, on December 31st 45 mills had on their books unfilled orders amounting to only 39,230,622 feet. Stocks, at the reporting mills on January 31st, were 13 per cent below normal which was the same percentage reported at the close of the previous month. The demand for the upper grades of lumber was somewhat weak, but the inquiry for common lumber during the past month has been brisk. The activity noticeable in building circles just now would seem to indicate that a considerably improved demand for lumber will be forthcoming during the ensuing months. Prices have remained practically steady during the month. 1ttIIIIIJIUltlIIII WUUIIUUJllWIU IIIIIIJIIUU UI IUUJ lllllllllllllllumUll1l11l1l1l111U 1111IIIIUUllIlUlUU ll UllilU llUIUlI lllllUlIl llIIlllIIlUtg E ~ § ; ~ JANUARY PINE MILL STATISTICS Number of reporting mills............ 41 Pr0 duc ti on ..................._.......... _...... 85,672•937 feet Shipments ................. _ ....... _ ........ 66,444,216 feet Orders .--..- ..... - - .-........................ - 7443,868687.897316 ffeet Unfilled orders .Tanuary 31st........ " e et Normal production ....... _... __..........101.600,166 feet Stocks, January 31 t.. .... _ ............ .260,227,916 feet Normal stocks._.... _........... _..... __298.828,644 feet Production above shipments ... ____ ... 19,128,722 feet=29% __ ................. 16,027,219 fee1=16% Orders below normal production 27.711,285 feet=27% Stocks below normaL ~. __ ...... ___ ......... _ 38,600,729 feet=:::13% ; ~ § E ~_ i ~ - ~ ~ § I Actu:~r:_~fu.~~i~~ ~~~~~ ~ iii_ ; § ~ § § ~ ~ 5 ~.llUlUtlUIlIIllIlIIIlIlIIlIUlUIlIlIlUIlUIlUITIIIIIIIIIIIIIIIIIIIIIIIIJIUIIl IIllIl"IIII11I1UIlIllI 1I 1111111UUUIIIIIIIIlIUlUJIUllillllfllllllfllil imi 12 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS BUILDING The opening of the new year disclosed renewed activity in the building industry at many of the principal cities of the Eleventh Federal Reserve District. The total valuation of permits issued amounted to $4,960,078.00 during January as against $3,025,311.00 during December, and $2,345,899.00 during January, 1921. There was a decrease in the valuation of permits in three cities. The decrease at Houston and San Antonio was very small, but the decrease at Austin amounted to 57.6 per cent. In all other reporting cities increases were recorded ranging from 6.6 per cent in Beaumont to 283.6 per cent in Dallas. The enormous increase at Dallas was a result of the issuing of an additional permit of $1,500,000.00 on a building which is practically completed, but this is partly offset by the fact that excavations for many new buildings are under way, for which permits have not been issued. This large increase in building activity is significant as January is ordinarily one of the dullest months of the year in the matter of launching new construction work The building of homes continues as a big element in construction activity, but indications are that it is now being extended to business houses and the remodeling as well as the enlargement of a few industrial plants. :,It1UmUlI1llnUlilTflnnnlllllllUumIIIllHnnnUllllIlllitlUlUIIIIIIlIIUlltIIlUIIIUIrlllIlIlIUllllllllnllLlllllltUlIlIlIlIIlIlIIlIlIlIIlllIIlIllTIUUllllllllllllllfIIllIllIIlIlIlIIllllllIlIIIIIuinuurllillllllilllllllllllllllllllflllUUllltttllllflllllll1lll11l1l1nlllllllflllnlfllllllllllllll1U!UIIUJIIIIJJlI',: ~ BUILDING ~= ~ PERMITS January. 1922 Dec!emh.".. 1921 ~ " ~ Austin ..... ..................... . ...... ........_........................................... . . ................................... Beaumont § § Dallas ....... _......_......... _ .. _..........................._... _ ~ El P aso .. _____ ._........ _ _ _ ._.. __ ... _.... _ I~;0s~1~~~:::::::::::::::: : : : : : : : :: :: : : : : : :: : : : : : I~h~e~~~~io:::::::::::::::::::::::::::::::::::::::::::::::::::::'.:::: ~ No. 24 60 294 80 Valuation No. 39,940 81,598 2,291,791 145,924 31 73 228 87 Ine. or Dee. Valuation 94,100 76,555 597,405 96,229 No. - 57.6 + 6.6 +283.6 + 51.6 ~~ J!H~~ !~ 1J~H!i t ~ i~~:~~~ i9~ l rH ~~g1~"+ 1t~ Total ... _.._..... __......... _............._..._... _ January, 1921 Inc. or Dee. Valuation l_ ~ ;; 28 171 275 96 15,84{) 101,719 589,808 114,962 ~~ ~r::~~g ~1~~:~ i +152.1 - 19.8 § +288.6 § + 26.9 g ~~ :~i:~!: !i~H I 1,9481 i 1,658 4,960,078 1,796 3,025,311 +64.0 2,345,899 +111.4 § f.1I111nIlIlIlUUIlIIIUIUIIIIIUlIlIllIIlIllIIlJlltllllllllllllflfIllUIIIIIIUIIIUlIITIIIIIIII1II11111111J11II1UUlIlItIlIIllIIllIllIlIlIlIIllIllIUlIUlIIIIIIIIIIIIIIIUIIIIIIIIIUmtnmlllfllllllllIIUIIHIIIIIIIlIlIlItUlllllllllllllllllltllJlIWlIllIIIIIIIIIIIWUUl1I1UIIIIIUllltlllllllllnllllllIUlllllllllllllllulln~ POST OFFICE RECEIPTS Postal receipts at eleven of the principal cities of this district amounted to $672,120.00 during January, 1922, which compares to a total of $624,190.00 for January, 1921, or an increase of 7.7 per cent. The actual dollar amount gain during January, 1922, over the corresponding month of 1921 was approximately as large as the total gain for the whole year 1921 over 1920. e t ~!fwjIltIUlUnllllllllnUlfnmlnlllmnltilUlljUllllllll1mlUUUnjlttIIUI1i11lIumllllluluuu1luhllllinmUlnuUllllmjllllnuIUlJlulillul11mnl1Ullut1IIIIIIIUIJUiUmUt.lIIUlnllf1l1111u"nUUI~ !~_i o Summary of National Business Conditions (Compiled February 27th, by the Federal Reserve Board, from the reports of the twelve Federal Reserve District •. ) .: ~ ~= ;:_= ; ~ _=:~_-= ~ ; = = ~= : __ : .: .: I .: !i I !- t i_ = During the past month improvement of conditions in several basic industries has furnished a more hopeful prospect for the trade of the coming months. This better outlook has in some measure been offset by labor and other difficulties in the textile industry, which have resulted in reduced activity in that branch of business. Fluctuations in the price of raw materials have subjected the textile trade to still further difficulty, while in that as well as in others the lack of forward orders has made it difficult to plan policies far in advance. In iron and steel varying opinions exist as to the situation and outlook. It is to be noted, however, that there has been a distinct increase in the activity of the plants of the United States Steel Corporation, as well as some increase in the activity of independent millsThe next outcome of these changes has been to: diminish the irregularity and unevenness noted in the movement of industry during 1921. Textiles and allied lines which have been far in advance of others are losing their relative momentum. The evening tendency thus evidenced by current readjustment is reflected in the fact that the Federal Reserve Board's price index remains unchanged at 138. Wholesale and retail trade indexes are disposed to show recession of buying in most parts of the country, save for seasonal activity in special lines such as dry goods. The volume of employment (another important factor in influencing demand for goods) shows but little modification. As compared with last year, the volume of building is very much larger, January permits being more than double what they were a year ago. Financially the month has shown continued reduction'in the volume of credit required by the community. Foreign exchange has shown a decidedly stronger tendency, the highest levels for a long time past having been reached in sterling, francs, and other European currencies. Business failures are on a materially higher level than in 1921, while the month of February, as previously predicted by commercial agencies, also shows an increase in commercial failures as contrasted with January. Eawm,.mlllJ]tlIUIIIJrlnIIIIIlIllIIIUlIiUlIIWHlllJUJlWI.uJnUI1HwnIIlHmnlmIlIlIIUUllnnm,lIInnlnU!IIII.mmthuttUIUUlllnWIIJII1Un,illlIltUUUUmIUllnUltllliluIIUUUlIIIllIIIlIUIIF.