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§:

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)
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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
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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

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..

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

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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.
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-:!IlIllIlIlIllmUUIHI,mtlllUUl l rIIUlilIInHlllUllltnruUII,uIU,rrnnl'IUII'11IIIIIIII III IIIIll l lII"IIIIIII II IIIIII, IIIIIIIIIIIIIIIII1III1111UlIlIlJe

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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

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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
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43
194,961 ~
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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 ~
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(Oil Statistics compiled by The Oil Weekly, Houston, Texas)

LUMBER

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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.
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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%

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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.

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PERMITS

January. 1922

Dec!emh.".. 1921

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Austin ..... .....................
. ...... ........_...........................................
. . ...................................
Beaumont

§
§ Dallas ....... _......_......... _ .. _..........................._... _
~

El P aso .. _____ ._........ _ _ _ ._.. __ ... _.... _

I~;0s~1~~~:::::::::::::::: : : : : : : : :: :: : : : : : :: : : : : :
I~h~e~~~~io:::::::::::::::::::::::::::::::::::::::::::::::::::::'.::::
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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

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Total ... _.._..... __......... _............._..._... _

January, 1921

Inc. or
Dee.

Valuation

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28
171
275
96

15,84{)
101,719
589,808
114,962

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+152.1
- 19.8 §
+288.6 §
+ 26.9 g

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1,9481

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1,658
4,960,078 1,796
3,025,311
+64.0
2,345,899 +111.4 §
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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.

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!~_i
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Summary of National
Business Conditions
(Compiled February 27th, by the Federal Reserve Board, from the reports of the
twelve Federal Reserve District •. )

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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.

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