The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Released for Press March 3, 1923.
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i
MONTHLY REVIEW OF BUSINESS AND
INDUSTRIAL CONDITIONS
IN THE
ELEVENTH FEDERAL RESERVE DISTRICT'
FEDERAL RESERVE BANK OF DALLAS
CHAS.
W. B. NEWSOME, Ch.irman and Federal Resef'\!e A.eent
HALL.
Alli.tant Feden.l
ReserVe Agent
Iq~,)
(Compiled February IS.
i
c.
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VolumeS
0.11 ... Tex••• M.rch
No.1
I. 19'3
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January
•I
fi
I
THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
Bank Debits to Individual Accounts (at 13 cities) ....................
Department Store Sales ................... _...............................................
Reserve Bank loan s to Member Banks at end of month....
Reserve Bank ratio at end of month ..............................................
Building permit valuations at larger centers................................
Commercial failures (Number) ........................................................
Commercial failures (Liabilities)....................................................
~~':b;,~dO~~~~s ~~~~~)Mill;; ..iiie;·ce;;t·~T~~~;;;;;i.. p~~d~cti~~)
December
$732.751,000
....................
$ 16,819,856
56.7%
$ 6,392.015
117
1,524,107
12.030,t~~%
lne. or Dec.
$720,388,000
Inc.
1.7%
Dec.
45.9%
Inc.
16.6 %
49.8% Inc. 6.9 points
$ 9,672,787 Dec.
33.9%
129 Dec.
9.3% ;:
$ 2,118,607 Dec.
28.1% §
......................
$ 14,422,329
12,273,9~~% E.~. 40 poin~'O%
I
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GENERAL SUMMARY
Further improvement in basic conditions is revealed in the January statistics of bUSiness and industrial conditions in this district as detailed elsewhere in this report and briefly summarized above.
Wholesale and retail trade activity received a
fresh impetus during the past month, and the record
of commercial failures showed a surprising improvement. As a rule the month of January witnesses
a substantial rise in the business morality rate. This
year, however, there was a sharp falling off both
in the number of failures and the volume of liabilities as compared to the previous month.
•
Credit conditions continue easy, as evidenced by
the low ratio of bank loans to deposits, this ratio
for the district's reserve city banks being only 89
per cent on January 31st as against 100 per cent
on February 3, 1922. The demand for funds to
finance commercial lines of credit and the growing
of crops during 1923 has not yet made itself felt.
The agricultural communities, following a prosperous season last year, are, with a few exceptions,
in a much stronger financial position than they were
a year ago, and recent rains and snows have placed
an exceptionally favorable aspect upon the crop outlook for 1923.
Reports from the extreme western portion of the
district are not as encouraging as those from other
sections. In Arizona and New Mexico the livestock
industry is still feeling the effects of drouth, and the
mining interests of that section have not yet developed the normal activity in production upon which
an important part of the population depends for its
welfare.
Building activity in the larger centers of the district continues unusually active, considering seasonal
factors. Related industries are feeling the stimulus
of this brisk midwinter construction program. For
the first time in several years the January r eports
of Eleventh District pine mills showed that lumber
production, lumber orders, and lumber shipments
were in excess of nonnal monthly production.
Employment, except in seasonal industries, such
as cottonseed oil mills, showed moderate gains in
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY REVIEW, OF BUSINESS AND INDUSTRIAL CONDITIONS
January,
Building activity especially was brisk, though the supply is still ahead of the demand,
absorbing some of the idle craftsmen in other lines, Metals, textiles and food products continue operasuch as railroad shops, where local controversies tions on an almost normal basis, and aside from a
have added some idleness in the larger centers, Oil . surplus of unskilled transients and local common
production, under the stimulus of rising prices, is labor reported by the building crafts, there is no
gradually augmenting employment in that line, great amount of unemployment now in evidence,
•
CROP CONDITIONS
Southwestern farms, after a rather protracted
winter drouth, were much relieved by rainfall occurring in the last week of January and an unusually
heavy snow that fell early in February, The breaking of the fields for the new cotton crop had been
somewhat delayed by the dry condition of the soil,
but the moisture supplied by the recent mins and
snows has pulverized the soil and placed the fields
in excellent condition for plowing, which is now
being rapidly completed,
The severe freeze of February 3rd is believed
to have had an excellent effect in those sections
where fields had been broken for cotton, not only
because of the "season" imparted to the top soil by
the heavy blanket of snow, but also on account of
the supposedly destructive effect of the cold wave
upon the boll weeviL Opinion differs, however, as to
the extent of weevil extermination effected by a midwinter freeze, it having been shown by past experience that large numbers of the insect are able to
survive the severest winters provided they have time
(as they did this season) to bunow deep beneath the
surface of the soil before a killing freeze occurs. It
would therefore appeal' that the weevil damage to
the 1923 cotton crop, as well as the reported increase
in acreage, is still a factor to be considered in estimating production this year,
The Texas winter wheat crop has shown only
slight improvement since our last report- The Panhandle section, where the bulk of the state's wheat
crop is produced, did not receive as generous a share
of the recent rains as did other sections of the state,
and the present outlook is for another short crop,
unless the present stand in the Texas Panhandle
is miraculously revived by a widely distributed,
drenching rain within the next few weeks,
While fall sown grains throughout the district
generally have disappointed early expectations, except where (as in Arizona) they are being used for
winter pasturage, prospects for other staple crops
were perhaps never more promising at this season
of the year, particularly in that large and fertile
section of West Texas known as the South Plains,
where the January rainfall is reported to have been
the heaviest for that month since the banner crop
year of 1919, The winter vegetable movement from
the Rio Grande Valley is now on in full swing,
The commercial acreage in cabbage is somewhat curtailed this year, but despite that fact Texas seems
to be leading other states in its contribution to the
cabbage market,
The cold wave which has prevailed in Texas for
the past several weeks arrived in time to prevent
the budding of fruit, and fruit raisers are now optimistic over the prospect of producing a normal crop
of peaches, pears and apples,-which would mean
much to East Texas, where the fruit crop for several
seasons has been heavily reduced by weather damage,
Receipts of cotton at the port of
Galveston for the month of January
showed an increase over the corresponding month a year ago, as was to be expected,
Exports, however, fell slightly below the January,
1922, totaL The appended table covering cotton
movements at all United States ports shows that
stocks on hand at the end of the month were 20 per
cent smaller than those of a year ago. An interesting feature of these statistics is the fact that despite
the advantage enjoyed by the Orient over Europe in
escaping much of the ravage of the world war, cotton exports from the United States to Europe during the present season have been larger than those
of the previous season, while our exports to Japan
and China have decreased about 50 per cent during
the same period.
Cotton
Movements . .
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COTTON MOVEMENTS THROUGH THE PORT OF ~
GALVESTON
~
i
~
January
~
!
~
~
1923
Gross Receipts ......
Exports ..................
Stocks, Jan. 31sL..
187,601
194,071
J anu&l"1
1922
Aug. 1st to Jan. Slit E
This
I...aat
~
Season
Season
~
170,318 2,072,304 1,792,227
205,169 1,783,338 1,702,285
............ 353,701 332,629
!
~
~
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•
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
• I::::N;~~~~~~~~ti~~"~;~ I
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Japan·China .___........
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Stocks at
335,224
674,797::
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Ja.n. 81,
192.3
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GALVESTON STOCK STATEMENT
I
Jan. 81,
1922
For Great Britain .. __ .... __ ................... ___
13,592
10,346
~~~ ~[~~:ef~~~ig·;;··po;ts::::::::::::::::::::
3~:~~g
~~:~~~
•
i
I
For coastwi se ports...... _____ .__ ..............
In compresses. __ .... __............................
6,000
293,099
2,500::
247,157 i
Total........... ..................................
363,701
332,629
i
3
of Arizona, where grazing has just recently begun to
deteriorate, the major portion of the ranges in this
district were greatly invigorated by January rains
and the heavy covering of snow which fell early in
February. The plains of West Texas and the Texas
Panhandle are now well supplied with winter grass
and with stock water.
Reports from Southern New Mexico show that
there has been a light rainfall as far north as Albuquerque, which, though not heavy enough to insure
grass, had a tendency to invigorate the old grass
and thus enable the stock men to bring their cattle
safely through the winter.
Throughout the state of Texas the livestock is
reported to be going through the winter in good
shape, little feeding being necessary now, and but
very slight losses from the recent cold wave reported.
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Grain
Movements.
•
January exports of grain through
the port of Galveston amounted to
2,258,000 bushels, representing the
largest monthly movement since the month of August. Wheat exports, totalling 1,914,000 bushels,
were more than twice as large as those of December,
and exceeded the record for January, 1922, by 843,000 bushels.
LIVESTOCK
Ranges
Impl'ove.
With the exception of New Mexico,
where ranges have been suffering
from drouth for several months, and
Supply of
Livestock
Decreasing_
The livestock repol't issued January
I, 1923, by the United States Department of Agriculture reflects a
marked decrease in numbers of
range cattle, sheep and swine in Texas, as compared
with the numbers on hand a year ago. The present
supply of sheep, though 7 per cent smaller than
the supply at the beginning of 1922, shows an increase of 42 per cent in value. Cattle and swine,
however, show a decrease in value as well as numbers.
The appended diagram presents a comparative
showing of the number and value of livestock on
Texas farms as of the dates indicated.
NUMBER AND VALUE OF LIVESTOCK ON FAllMS IN TEXAS AS OF JANUARY I, 1923, AS COMPARED WITH
SAME DATE, 1922.
c::J Number
_
Value
Horses
1922.
100%
I
I
I
~u'es
M, IKCows
Other Cattle.
•
Hogs
S heep
All Classes
II
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
Movements
and Prices.
Compared with the seasonal movement of Texas livestock last year.
the present movement shows a
heavy falling off. Federal statisticians have estimated that shipments of steers this spring will
amount to only 68 per cent of the 1922 spring movement; 67 per cent for heifers; and 74 per cent for
cows. January receipts at the Fort Worth market
showed a marked decline from the volume of livestock handled in December. all kinds of slaughter
animals sharing in the decline. The movement to
this market was also lighter than during the corresponding month of last year. with the exception
of cattle. which registered a substantial gain over
January. 1922.
The average prevailing prices of cattle on Texas
ranches February 1st. according to estimates made
by government observers were as follows: calves
$17.00; yearlings $22.00; three-year-olds and over.
$40.00.
Top prices at the Fort Worth market in January
reflected a slight gain on beef steers. stocker steers. .
sheep and lambs. and practically no change in the
figures for cows. calves. and hogs.
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FORT WORTH LIVESTOCK RECEIPTS.
January
1923
Dece mber
HI22
g:f!~~ ::::::.~~.~~ ~:m
I Hogs ..........41.547 45.546
Sheep ........12.316 7.957
Cain or
Los_
tL
L
January
1922
~:g1~ i~:m
3.999
4,359
GRin or
Loee
Z2l.g~~
50.462 L 8.915
37.576 L 25,260
iI
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COMPARATIVE TOP LIVESTOCK PRICES
i
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Janu&rT
December
3i
19Z3
1922
$ 8.00
8.75
5.25
3.50
7.00
8.75
8.50
14.25
$ 7.
25 •
• 6.85 ;;
6.50
6.00_
5.75
5.50
3.50
3.50'
7.25
7.75
8.75
8.75
8.00
7.50'
14.00
11.25 i
Ii Beef steers ............._.............
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Stocker steers ........................
Butcher cow. ........................
Stocker cows ............. _........_.
Calves ... _........ _.....................
Hogs ........................................
Sheep ......................................
Lambs ....................................
Jllnuary
1922
;;
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WHOLESALE TRADE
The opening month of the new year featured a distinct improvement in the buying demand in all lines
of wholesale trade. Sales not only reflect large increases over the same month a year ago. but in
most instances over the previous month. During
the closing months of last year there was a tendency
for retailers to hold in check orders for their requirements to await further developments in the price
situation. and to be better able to gauge the probable
consumer demand. but with the turn of the year
there was a general broadening of operations and
l'etailers have been stocking their shelves in anticipation of a normal consumptive demand during the
spring months. While the demand from city trade
has been good for some time. country demand has
been somewhat restricted. consequently the improved demand for goods has come most generally
from the country sections rather than from the
city trade. This has been due in part to the favorable developments in the agricultural districts caused
by the general rains which have left the soil in
excellent condition for the planting of the present
crop and in part to the increased activity in the
oil fields following the successive increases in the
price of crude oil.
Prices in most lines are steadily working upward
and this has had the effect of stimulating distribution in some lines. as the consumer demand is already materializing.
While collections are not as good as they were during the fall months. dealers report that they continue satisfactory.
Dry
Goods.
•
Following the year-end lull in the
dry goods trade the January distri-
bution was exceptionally heavy.
Sales were 124.1 per cent in excess of December
sales. and exceeded January. 1922. sales by 60.5 per
cent. With the opening of the market season at most
of the wholesale centers in February. dealers report
that extremely satisfactory distribution has resulted
and that retailers are expressing themselves freely
concerning the bright prospects for spring business.
The demand was good throughout January and buying has covered a wide range of merchandise. Retailers' stocks generally have been very low and the
buying of spring merchandise was delayed until
after the first of the year because of the uncertainty in the price situation. Earlier deliveries appear to have covered mostly the goods needed for
immediate resale. Despite the fact that prices have
shown a distinct advance during the past four
months following upward movements of raw cotton.
wool. and silk. the outlook for the first six months
of the year is very encouraging. Consumer buying
•
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
•
for the past two years has to a large extent covered
actual needs and the consumer has found it necessary
to buy regardless of the increased prices.
Dealers report that while collections have slowed
down to some extent since last fall, satisfactory results are still being obtained.
Stocks carried by wholesalers at the close of January were 27.4 per cent greater than at the close
of December, but were 13.7 per cent less than a year
ago.
Farm
Implements.
•
•
5
retail channels, however, the demand for furniture
is strong, due to the extensive building of homes
and apartment houses, and in view of this fact
the outlook for the present year is encouraging.
Drugs.
The increased demand for drugs,
which became apparent early in
January, continued throughout the month. January
sales were not only 28.9 per cent greater than December sales, but were 19.9 per cent greater than
January, 1922, sales. Some dealers report that this
activity continued during the early part of February. The increased demand has been noted more
especially in the country sections. Some dealers
report that city trade has not been as active as a
year ago. The drug trade showed a steady improvement throughout the year 1922, and the present outlook indicates that further improvement will
be felt during the current year.
Prices have shown a further upward trend.
Reports from farm implement firms
disclose a record business during
January, when sales were 67.7 per
cent greater than December sales and 189.4 per cent
larger than sales during January, 1922. The general rains which occurred late in January and early
in February left the land in excellent condition for
the planting of the forthcoming crops. The farmers are now in a more advantageous position than
they have been since 1920, due to the fact that they
were able to clear up their old accounts from the
proceeds of the 1922 crop, to the present bright
prospect for the current year because of the present
condition of the soil, and to the strong statistical
position of cotton, which gives promise of a good
price for the current crop. There are two factors
which are making possible the large distribution
of farm implements at the present time. First, the
farmer is badly in need of all kinds of implements
because he has not been able to buy his actual requirements for the past two years; and, second, the
farmer for the first time since the depression is in
a financial position to make the necessary purchases.
Furthermore, because of the present outlook, a
more optimistic feeling pervades the farming community, which makes the farmer less hesitant
about covering his requirements.
While the recent advance in prices may tend to
retard distribution for the present, it is thought
that such a condition will be only tem~·ary.
While the January sales of twelve
grocery firms were practically the
same as December sales, they were 21.2 per cent
greater than January, 1922, sales and were also
slightly above 1921 sales. During the first half of
1922 there was a gradual gain, but during the latter
half of the year a decided improvement took place.
The favorable conditions prevailing in the agricultural districts, the renewed activity in the oil fields,
and the improved employment conditions, which
have taken place in the larger centers, indicate that
distribution of groceries this year will be on a large
scale.
Prices on most articles are firm, and are showing slight advances. While the price of sugar weakened during January, the report that there was a
short crop caused the price to jump to the ten cent
level early in February, which was the highest point
reached since 1920. However, the price settled to
a slightly lower level later in the month.
Furniture.
Hardware.
Distribution of furniture was 10.1
per cent less than in December, but
16.2 per cent greater than during January, 1922.
In the wholesale furniture trade the month of January repl'esents the between seasons dullness, as retailers generally hold off buying during that month
to await the new price quotations made at the yearly
exposition. Retailers as a whole feature reduced
price sales during January and February to clear
out their surplus stocks and purchases during January for the most part represent items which can
be used as special features at these sales. 1n the
Groceries.
The January sales of twelve hardware firms were 14.7 per cent
greater than December sales, and 38.9 per cent
greater than the corresponding month of 1922. The
building activity, which has shown no signs of abatement, has caused a continued demand for building
supplies and househol~ articles. Oil field supplies
have also been selling well on account of the renewed activity in the various oil fields of the district.
Some dealers report that the demand during January for auto accessories was not so good as during
the previous months, but the decrease is partly ac-
6
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
counted for because this is the dull season for this
type of goods.
Prices on practically all items are either firm or
advancing.
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CONDITION OF WHOLESALE TRADE DURING JANUARY, 1923
Percentage of Increase or Decrease in
J!~im
compa~d wtih
eompared w ith
I
Ja{92~ry
i Groceries ......................................................................................................................................
, Dry Goods.. ..........................................................................................................._.....................
Hardware ....................................................................................................................................
Farm Implements__ ..___ ............. __ ....................... _... __ ......... __ ....... _........._.................. _.. _................
1
.
~~
+ 21.2
+ 6{).5
+ 13889. 94
•
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.2
+124.1
+ 14.7
+ 67.7
+ 24.9
- 13.7
+ 29 . 46
0
i
+ 2.8 l
+ 27.4 ,
+ 8..7
45 ~
I.
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RETAIL
While the normal slackening in department store
sales occurred during January, the decline this year
was not so marked as during the past two years.
The January sales of twenty-two department stores
were 45.9 per cent less than December sales, which
compares to a 50 per cent reduction during the past
two years. Despite the facts that January for the
most part was an unusually warm month sales were
6.9 per cent in excess of those during January a
year ago. Clearance sales were well patronized and
retailers report that winter stocks were to a very
large extent cleared out. But this feature has not
been the most encouraging one, for staple and seasonable goods have moved in a larger volume than
was generally expected at the opening of the year.
The retail trade outlook is considerably brighter at
the present time than it was a year ago. This year
there is a broad general demand for merchandise, and
the consumers appear to have again entered the
market for the better class of merchandise.
January inventories disclosed the fact that department stores were carrying 5.3 per cent less
TRADE
stocks at the close of January thaI' they were carrying at the close of January last year. However,
they show stocks to be 2.5 per cent greater than at
the close of December. The retailers are now stocking their shelves with new merchandise to take care
of the spring trade.
With department stores operating on reduced
stocks and with sales in a larger volume, the January
ratio of stocks to sales was 424.6 per cent, as compared to 475.6 per cent for January, 1922, which
shows a considerably better turnover.
The ratio of outstanding orders at the close of
January to last year's purchases was 9.6 per cent
as compared to 7.5 per cent at the close of December and 8.3 per cent at the close of January, 1922.
The ratio of January collections to accounts receivable on January 1st was 41.6 per cent as compared to 39 per cent during December and 38.2 per
cent during January, 1922. It will be noted that
January collections were better than they were at
any time dUl;ng the year 1922.
•
"11111111111111111111111111111 111111111111111111111111 111111111111 111111111111111111111111111111111111111111111111111111111111IIIIlIIlIIlIlIIlIlIIlIIlIIlIIlIlIlItllllllllll"UlllltlIIIIIII"lI lIlIlIIllIIlIIlIlIIlIlIlIIlIIlIIlIIlIIlIIlIlIItllIIlIlIlIIlIIlIIlI1IllIlIIlIlIIlIIlIIlIlIIlIlIIlIIlIlIlIUlllllllllllllllltllllllllllllllUtlllltll'.
BUSINESS OF DEPARTMENT STORES
Total SalesJan., 1923,
Jan., 1923,
Credit SalesJan., 1923,
Jan., 1923,
Stocks;
Jan., 1923,
Dalla.
All
Ft. Worth
Houaton
Total
Other
Dt.trlet
compared with Jan., 1922................................
compared with Dec" 1922................................
+ 10.8
44.3
+ 10.4
- 58.2
1.7
43.8
compared with Jan., 1922................................
compared with Dec., 1922................................
+ 12.5
41.4
+ 24.5
55.6
+ 12.4
39.2
+ 10.1
- 38.6
compared with Jan., 1922................................
6.9
+
-
-
~ ~:::f~l'~;~:Ei~~::;:~i~:··:::::;~~~~~:~:L~~~~~~. : :::: :
•__,I•
Ratio of January collections to Accounts Receivable, due
and outstanding Jan. 1, 1923................................................
_
+
4~H
+
5.3
8.5
5~H
- 42H
39.9
44.4
+
+
11
6.3
40.5
4.3
38::~
+
6.9 ~
45.9 i
!
+ 12.9 •
42.2
.;
5.3 _
i
+ 42::i
I
jl
37.0
50.0
41.6
ilIllIlIlIIllUIIIIIIIUII""UltllllltlllllllllllllllllllllllllllllllllilIllIllHllllllmnIlIlIlIlU IIIIIIIIIUlllllllllllllllfllllllllllllllllllUlUlIIlIIlIlIlII NIIlIIlIlIlIIlUmlllllllllllln llllllllllllllllllllllH lIlIlIlIlIlI1IUlllllltllllllltIIIIIIIIIII IIIIIIII IIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIII IIIIIIIIIIIUIIIUIIIUUlIIII:;
FINANCIAL
The January volume of public spending at the to individual accounts showed a good gain over both
larger centers of this district as measured by debits the previous month and the corresponding month
•
-
•
-
- _._
- - - - - - --
-
-
- --
- --
-
-
-
:\WNTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
of last year. The total amount of checks charged
to depositors' accounts during January was $732,751,000, as compared to $720,388,000 for December
and $620,406,000 for January, 1922. This represents
an increase of 1.7 per cent over the previous month
7
and 16.6 per cent over the same month last year.
n will be noted from th e table below that beginning with this issue debits to indivdual accounts are
shown on a monthly basis, instead of a weekly average basis .
1:" ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '"'"~; ':~ ;'~' ';~' ' ~; ~'~; '~;:~ : : :;'~' ' ' ' =~ :' ': ~ ' '" "' ' ' ' ' ~ ~ ~:~' '~': ~' ' ' ' ' ' I.
.
Albuquerque ........................................ .....................................................
Austin ....................................
....................................................
Beaumont .........
...........................................
Dallas .............
...................
................ ..........
~ EI Paso ............... ...............................
~.~
Fort Worth ......... . ..................... .............................. ......................
Galveston .............
......................... ....................
..........................................................
1 Houston ....................................
~ San Ant onio ..................... __ ..................................................... __ ...............
•
1
~
It;~::~;,.;:;.I;",~.
i
~:
$
9,514,000
17,337,000
18,334,000
193,256,000
31,993,000
122,250,000
96,206,000
133,571,000
31,287,000
$ 10,377,000
$ 7,683,000
18,329,000
17,195,000
199,070,000
34,532,000
120,962,000
83,601,000
131,209,000
31,095,000
12,134,000
15,085,000
150,103,000
34,458,000
137,684,000
66,708,000
110,108,000
27,179,000
.,;!~!,~ ,,;!r.~~ .~~~~
~
::IUUlUUlIlItUllmll"lUlmimUlIIIllIIIIIIIIIIIIIIIlUIlUlIIIIIIIIIIIIIIIIIIIHIUIIIIUIIII IIU IIIIIIIIIIIIIIIIIIII1IIIIIIIIIIIlU llllllll ll lllllllllllillllllll1ll11ll1l1l 1l 1ll1l1ll1l1l1l1l1ll1l1l1ll1l1l1l1llllU UlIIIIIIIIIIIIIIIIIIUli1lIIIIIIIIIIIIIIIIIII IUIIIIIIIIIUIIIIIIIIIIHllllllllllllltlIIIIIIIIIIIIIIIIIIIUIIIlIIL'
•
There was a decline of $236,116.63
in the volume of acceptances exe·
cuted by accepting banks of this district and outstanding on January 31st. The total
volume outstanding on this date was $3,372,576.05,
as compared to $3,608,692.68 on December 30th. The
amount outstanding on January 31, 1922, was $2,325,007,57. The volume of outstanding acceptances
executed against import and export transactions in·
creased from $1,550,225.84 on December 30th to $2,·
280,844.89 on January 31st while the amount based
on domestic shipments and storage of goods decreased from $2,058,466.84 on December 30th to
$1,091,731.16 on January 31st, The amount of
bankers' acceptances held in the portfolio of the
Federal Reserve Bank of Dallas decreased from $26,826,619.80 on December 30th to $21,291,096.82 on
January 31st.
Acceptance
Market,
Condition of
Reserve City
Banks.
The net demand deposi ts of reserve
city banks increased $2,646,000 during the month, being $239,686,000
on January 31st as compared to
$237,040,000 on January 3rd. As compared with a
year ago demand deposits show an increase of $49,017,000. Loans on January 31st amounted to $213,175,000, as against $212,376,000 on January 3rd,
showing an increase during the month of $779,000.
The U, S, securities owned by the banks declined
from $56,922,000 on January 3rd to $53,304,000 on
January 31st, but on the latter date they were $12,016,000 greater than on February 3, 1922. That these
banks still have a surplus of funds is evidenced by
the fact that their reserves at the Federal Reserve
Bank increased $3,306,000 during the month, while
the combined total of time and net demand deposits
decreased $1,669,000. The percentage of loans to
deposits stood at 89 per cent on January 31st, which
is one point lower than on January 3rd, and 11
points lower than on F ebruary 3, 1922.
~ 1II1I1U1l1l1l1l1l1l1U1I"'"lI llI lIllIlII lItlllllllllllllllllllllllllllllllln""IUII"""IIIIIIIIIIIIIII"1U1I11I1I1I1I 1I ""UIIIIIIIIIIIIIIIIIII U ",,", IIIIIIIIIIIIIIUIIIIIIII I IIIIIIII UII IIIIIIIIIIII UIII""'"1111111111111111111111111 1111111 1 11111111,",,"1111111111111111111111111111111111111111111111111111111 11 IIIIII""~
I
i_
l
•
1.
2.
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
19223 J a nuary 3, ~;2B
J a nuary 31, 5
Number of reporting banks. __ ..... __ ............... __ ......... __ .. __ ........ __ ........... __ .._
U. S. securities owned..............................................................................
$ 53,304,000
$ 56,922,000
;!!~~1;~~I{:y:?·~:i~~;~¥~~:·5 ~~;+.::;. ,:;;;;::
7.
8.
9.
10.
§. 11.
Net demand deposits ..... _...........................................................................
Time deposits..............................................................................................
Reserve with Federa l Resen"e Bank ................ __ .................... ___.............
Bills payable with Federal Reserve Bank
............................
Percenta ge of loans (*) to net dema nu depo sits..............................
*Loans include only jtems 4 and 6.
239,686,000
72,638,000
27,580,000
4,371,000
89 %
I
F ebruary S, ~~22
$ 41,288,000
i_
~
,::~~::: ,::::=: !.
237,040,000
76,953,000
24,274,000
3,138,000
90 %
189,769,000
59,596,000
21,126,000
8,134,000
~
100% §
§
!IIIIIIIIItIltIlIllIUlltlllllllilOHllllotIllIlIlIllIlIlIlIlIlIllUlIIIIIIIIII. lllllllIUIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIImll"llIlIlIlUlUlllUtl llllllllllUlIlIllIlIlI IIIIIIIIIUllllllllllllltllllllllllllllllllllUllllllllltllIlIIIIIIIUIIIIIU llllllll lltltIllIIlIlIlIUIIIIIUIIIIIIIIIIIIII IIIIIIU"'II"'IIIIIUIIII"IIIU"""llIIfi
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
8
firmer rates in Fort Worth and San Antonio. The
"high," low," and "customary" rates prevailing at
these centers for the thirty day period ending February 15th are presented below.
Discount
Rates.
Discount rates at commercial banks
for the cities listed below showed
but little variation from the previous month, but t here was a tendency toward
•
llllllllll lll llllllllt lll lllllllllll ll llllUlllllllllllmmllllllltlllllllllll ll lUUllIIIII11I""IIIIIIIIIIII IIII IIIIIIIIIIIIIIIIIIIIIIIUIIIIII III I1IIIIII1I1I1I11III11III11111111111111IIn m lllllll lll llllll"' IIII I II ''' llII glIIll''II~IIHIIII I IIIIIIIII''lIllllmllllmllllll llll lllll1II III IIIIII IIIII IINIIll Ill IfIIIIIII IIII "If~
I
I
I
Dall.s
H
L
C
JANUARY DISCOUNT RATES
B'ouston
Ft. Wortl;:
EI Paso
H
L
L
C
H
C
H
L
C
I
-
San Antonio
iI
L
C
Waco
L
H
C
I
i
Prime commercial
paper:
i
Customers' 30 to
90 days ................
Customers' 4 to 6
months ..............
Open market 30
to 90 days ........
Open market 4 to
6 months ............
E
Interbank loans ........
is Col1ateralloans, demand ......................
Collateral loans, 3
months ..................
Collateral loans, 3
to 6 months............
Cattle loans ................
Loans secured iby
warehouse
receipts, Bs-L, etc.
Loans secured by
government securities ..................
I
I;
6
4A
5A
10
6
8
8
5
6
7
5
6
8
51
7
8
6
7
6
4A
51
10
8
8
8
5
6
7
5
6
8
51
7
8
G
71
5
4.
4. ....
....
....
....
....
....
7
4
41
....
....
....
8
6
6
7
7
41
6
5
6 E
6
4
5.
51
4
4.
I
I;
6
7
4
5
51
5!
10
9
8
6
8
8
5
6
4.6
4!
6
....
5
....
41
....
41
8
6
71
10
8
8
8
6
7
7
5
G
8
6
7
8
6
7. §
8
6
7
10
8
8
8
7
8
7
5
6
8
6
7
8
6
71
8
8
6
6
71
71
10
10
8
8
8
8
8
8
7
7
8
8
7
7
5
6
6
7
8
8
6
6
7
71
8
8
7
7
8
8
8
5
61
10
8
8
8
6
6
7
6
7
8
6
71
8
8
41
6
10
8
8
10
6
8
5
41
5
8
6
6.
8
I~mllllllllllllll,""''''II''tlllIllllII'''IIIII''tI''IIIlI11I1I11I1I1IIIII11IIIIIIUIIIIIIIIIlHIm"IIIUUIIUUIIIIIIIHIIIlIIlIlIUIIIIIIIlIIllIIlltllllllllltllIllUII".UIIIIUIIIIIIIIIIMlIIUlU_IIItHI
Savings
Deposits.
I
Reports from 118 banks operating
a savings department show savings
deposits on January 31st to be 2.8
,
~
7
5
'11t'"lIIl11n_IIIIfI_lIIlllllllllllltI''"IIIIIfI''''''IIIIt"mllllllllllilllllll"....
8
8
I
~
I
IIIIIII'''''IIIIII~
•
per cent greater than those on December 30th, and
14.8 per cent greater than those on January 31,
1922.
' ''' ''''''111'11111'11 '''' 11111''11111111111 1111 1 1 11111 11 11111111111111 1111111 1111111111 1111 11111111 11111 111111 1111111.111111111 11'"'11 11"11 111111 111111 11111 11" 1111'1111111IIIIIIII IIIIIIIIIIIIIIIIIII IIIIIIIII IIIII IIII IOIll IlIl IIIIlIlIllIl IlIlIII IlIlIl IIIllIIl Ill IIftrIlIl Ill1IIIII IIII IInllll ll" IIIIII IIIII IIIIII IIIII I""I IIIIII"'"~
SAVINGS DEPOSITS
1~'.,'::";i~;·1
Banb
Beaumont ........... .............................. .......................................
3
8..
Ino. 0'
Dec.
D~.mbe,
30.
1922
Ino. '"
Dee.
,_
+ 3.7
!
g
1.8
I,.'
1,017,725
+ 16.1
1,139,753
3
5
6
4
4
4
73
5,675,739
6,393,008
11,978,755
9,111,526
7,757,984
1,727,003
2,473,838
17,682,275
5,127,461
5,595,246
10,755,388
8,671,376
5,931,475
1,269,225
16,041,28u
+10.7
+14.3
+ 11.4
5.1
+3 0.8
+36.1
- 9.6
+10.2
5,777,307
6,212,891
11,954,721
8,961,699
7,274,821
1,622,661
2,581,066
17,001,272
+ 2.9 ,
+.2 ~
1.7 i
+ 6.6 ,
+ 6.4 j
- 4.2 ~
+ 4.0 !
ill
82,887,692
72,172,934
+14.8
80,641,820
+ 2.8
gf~~~~ :::::::.::::::::::::::::::::::::::::::::::::::: :::
I
I'
Total ...................................................................... ........
J an._."
1922
1,181,639
Fort Worth .............................................................................
Galveston .... .........................................................................
1I 0u. ton .... .......................... ............. .........................................
Sun Antonio ........... ....................................................................
Shreveport .................................................. .............................
_ Waco .. .. ....... .. ..... .... .. ....... ................ ........ ......
Wichita Falls ..... ....... .. ...... ..
.. ............... .... ....
All others ....... ..... .. .............................. ...............................
I
J anuuy 81.
1928
i
4~
1~:~iU~:
~:m:m :):n:~ 1~:~~~~~
2,736,2~2
+
+
+
!
IIIIIIIIII.,IIIIIIUII',""'"III,II" "IIIIIIIIIIIIII','"III""I,IIIIIIIIUIIIIIIIIII"IIIUM.III,, 1IIIIIIIIUtlmIlIlIllUIlIlIlIUII"M'"IIIIIIIIIIIIIIIIMlII,IIIIUIIIII!IIIIIIIIIIIIIIII IMl'1II1I1I1lII11I 1I1I.1I11.1I1I1I1It'"UII'"tlllI'M'"III'lIIlIItllIllIUUlIIIIII IIIIIIJIIIIIUIfI IllIlUlIIII'"UMUUIIIIII I"" 111~
Operations of
the Federal
Reserve Bank.
There was but little change in the
operations of the Federal Reserve
Bank during the month . While
loans increased from $14,422,329.67
on December 30th to $16,819,854.72 on January 31st,
or a net gain of $2,397,525.05, this amount r epresented to a very large extent the temporary borrowings of some banks. This is borne out by the fact
that member banks' collateral notes discounted increased from $987,780 on December 30th to $2,095,280 on January 31st. On February 15th loans to
member banks had declined to $15,476,789.62.
Neither the demand for commercial loans nor for
loans to finance the current year's crops has become
active.
Early in February the bank made a further investment of five million dollars in certificates of indebtedness.
The volume of bills held by this bank declined
from $41,248,949.47 on December 30th to $38,110,951.54 on January 31st, distributed as follows:
•
9
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
•
,," '"UII " IIIII II1 II1III1I1I11 IIIII11 I1 II11II11I1 I1 IIII" ' IIIII"'111II 11II1 111IIUlUllflIU IIIUIIIIllIll'lI lmUIll III'III' lIIllIllIulllllllm't/ll lltU' n ....
~
~
Member banks' coll ateral notes secu red by
United States Government obli gati ons $ 1,837,250.00
~!i___ :::~~l~~:::::·:~~z::·r(:::~e::;·:::::
14,982,604.72
ances ) ............................................................ 21,291,096.8.2
~
Tot al bills held ........................................ $38,110,951.54
~""lIlIIllIlIlIlIlIIuulllllllllllmllllmlllll'mIlIlIlIlUlllmIllIllIlIlIllIllIllIlIllIUlllllllllllllllllllllm1IIIII'"IIIIIIIIIlIIIIIIIIIIUIUIIIIII ... •
Federal Reserve notes in actual circulation decreased from $37,761,135 on December 30th to $32,679,520 on January 31st, showing a net reduction of
$5,081,615 during the month. The reserve deposits
of member banks showed a furth er improvement
during the month, being $54,967,663.98 on January
31st as compared to $54,461,086.84 on December
30th, or an increase of $506,577.14.
FAILURES
Commercial failures in the Eleventh Federal Reserve District reflected a sharp decrease during
January both in number of failures and the amount
of liabilities.
There were 119 failures involving
liabilities amounting to $1,524,107 dUllng January,
as compared to 129 failures with a total indelited-
ness of $2,118,607 during December. January, 1922,
witnessed 207 failures with liabilities of $5,148,644.
In the United States as a whole the number of
failures showed a sharp increase, but the liabilities
involved showed a considerable reduction. Both the
number of defaults and the amount of liabilities reflected a large decline from a year ago.
,tu'Um""...,IIIIII IIIIHIlIIAIWIII ,HUIIIII I I _IIII IIIIWIIIIIU"UII IU.IIIII IIII.UII IIIIIUU. , IIIUIIIII IIIIIII IIIHI,III IIIIItIIIIII IIIIIIII Ulltlllllllll llllllllllllllllllllllunallll1I111111111 11111111U1I1I" " lUlllllmIllIIl UUlIII IIIIIUlIII IIIII'QI,mIllIIllI!I IIIIIIIIIII IJIIIU1II1I1 I11IC11.... ,'g
i
~
j
COMMERCIAL FAILURES
I Bost~~st'.i~~s.:.. . . .. . . . . . . . . . . . . . . .. .. . . . . . . . . . .. .. . . . . . . . . ... . . . .. . . . . . . . Num~7n;a'Y~~~i~11n Num~i;"'· L~~it442
_
•
i
~
~
!i,
1,_
•
i
I~
A ll Federal RCtJerve D '-trlcta
New york....................................... ...............................................................................
Philadelphia ................................................................................................................
Cleveland ......................................................................................................................
Richm ond ......................................................................................................................
Atlan ta ..................................................................................................... _.... .............
Chicago ........................................................................................................................
St. Louis........................................................................................................................
Minneapolis ..................................................................................................................
Kan sas City..................................................................................................................
DALLAS ............................................ .................. ........................................................
San Francisco..............................................................................................................
Total
....................................................................................................................
441
114
182
173
186
283
97
108
81
117
172
2,767,619
7,235,898
3,623,783
2,689,396
6,250,185
1,855,028
2,655,679
1,491,314
1,524,107
1,922,869
429
136
242
233
283
362
177
109
112
207
224
2,126
49,210,497
2,723
22,885,754
2,561,559
6,238,303
4,696,036 '
5,012,931 i
10,314,358!
4,013,092,
2,597,637 i
3,400,430 ~
4,326,594 ~
5,148,644 ~
73,795,780
I~
"' lIIlIlIIl llIIlIlIIllIlII ll lIIlllIIlIIlIllIIlIlIlIll lnIIllIlIlIIIlI IllIII IlIl IlIllI IllI IllIllI UUIIU IU IIIIIIIIUIIIIIIIIIIIUUlIlIllIlII IlIllIlI IIIIlI IIIUI IIII.II IllIIl Il IUIIIIII IIIIIIIIIIIIII11111111 11111111111 111 1111 1111111111 111111111111 11111 1111111111111111 1111/11111 11111111 11111 111111 11 111111 1111111 11111111111111 11111 1111111';
PETROLEUM
•
A slight decline was in evidence in the crude petroleum production of the Eleventh District during
January as compared with the previous month. The
total output for January amounted to 12,030,430
balTels as against 12,273,980 barrels for December.
Texas production dropped from 9,550,720 barrels
during December to 9,480,360 barrels during January, and the yield from the Louisiana field declined
from 2,723,260 in December to 2,550,070 in January.
This is the lowest production record for Louisiana
since December, 1921.
The Texas Coastal fields again reflected increased
production, having risen from 3,339,305 in December
to 3,466,440 in January. The larger output in January was due to the completion of several large producers in the Hull field, which added a sufficient
amount of new production to more than offset the
decline in the old wells. In this field the ten producers completed during the month had an average
initial production of 1,650 barrels per well.
The average daily yield of the Central West Texas
fields was 119,042 barrels for December as compared
to 126,620 barrels during the previous month. The
Mexia-Currie field showed a loss of 169,245 barrels
in the monthly output, representing a decline of
5,459 barrels in the daily average production. Stephens County wells produced 936,320 barrels during
January as compared to 998,450 barrels during December. The Ranger-Eastland County field showed
a small loss in production during the month, while
the Moran-Shackleford field reflected a slight gain.
The North Texas fields produced 2,044,420 barrels during January as compal'ed to 2,049,985 barrels during the previous montb, which shows only a
slight decline during the month. All the major
North Texas fields shared in the decline, but the
decline was not large in any field.
The Haynesville (La.) field showed a further loss
in production during January, the daily average yield
10
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
for that month being 40,577 barrels as compared
to 45,025 barrels for the previous month.
obtained from 33 producers completed during December.
Drilling
Results.
While the North Texas fields completed 130 wells,
including 85 producers, during January as compared
with 148 completions including 104 producers during December, the new production added during
January amounted to 9,707 barrels as against 9,301
barrels for December. The Electra field had 55 completions during January, of which 38 were successful with an initial flow of 4,348 barrels, as compared
to 65 completions during December including 47 producers yielding an initial production of 4,195 barrels.
The seven successful completions in the Burkburnett
field yielded an initial flow of 1,084 barrels as
against 225 barrels of new production added from
the 10 producers completed during the previous
month. Young County contributed only 6 producers
during January, which had an initial output of 1,125
barrels of oil and 15 million cubic feet of gas. This
compares with 18 producers brought in during December, which added 2,685 barrels of new production.
A general slackening in drilling operations was noticeable during January in all the major fields of the
Eleventh District. The wells completed during January numbered 373, including 242 producers with
an initial flow of 45,252 barrels, which compares
with 50~ completions during December out of which
351 proved successful, yielding an initial flow of
59,114 barrels. Texas fields contributed 346 completions with 225 producers, yielding a flush production of 44,192 barrels as against 462 completions
during December including 317 producers with an
initial output of 52,019 barrels.
There were only 97 wells completed in the Central-West Texas fields during January as against
162 during the previous month. The 61 producers
completed in January added 4,147 barrels of new
production, which compares with 17,271 barrels of
new production recovered during December from
the 100 succeSsful completions. January drilling results reflect the curtailment of ope1'8tions which took
place during the last two months of 1922, due to
the unsatisfactory prices which were being paid for
oil. However, following the numerous increases in
the price of crude oil during the past two months,
the latter part of January witnessed new locations
in practically all fields, and the resumption of work
on the temporarily abandoned wells was also in evidence. In the Mexia-Currie field there were four
completions, all of which were producers yielding
an initial flow of 305 barrels, as against 26 completions during December, of which nine were producers making a flush production of 655 barrels.
Considerable interest was created in the old shallow
field near Powell with the bringing in of a deep
producer. Since that time plans for further development have been rapidly formulating and several
wells are now ready to be dril1ed. Stephens County
had 13 completions during the month, of which 11
were producers as compared to 22 completions during the previous month including 15 producers, but
the new production added during January was only
1,740 barrels as against 8,100 barrels for December.
There were 22 completions in the Ranger-Eastland
field with 15 producers yielding an initial output of
1,635 barrels of oil and 56 mil1ion cubic feet of gas,
as compared to 34 completions during December including 27 producel's with a flush production of 2,985 barrels of oil. In the Moran-Shackleford field,
there were 46 completions including 26 producers,
but only 234 barrels of new production were added.
This compares with 4,925 barrels of new production
There was a large drop in the number of completions in the Gulf Coast field during January as
compared with the previous month, but more new
production was added in that month than during
December. January completions numbered 46 wells,
33 of which were producers yielding an initial flow
of 27,215 barrels, which compares to 75 completions
during December including 59 producers with a
flush production of 23,491 barrels.
•
•
Developments in Louisiana are now at a low ebb.
There were 27 completions during January and ten
of these were failures. The initial production from
the 17 producing wells amounted to 1,060 barrels.
The Haynesville field, which has been a big factor
in the state's production, has about reached the end
of productive 'development. There were but two
wells completed during January, which added only
80 barrels of new production.
Crude Oil
Prices.
The crude oil market, which began
to work upward about the first of
December, has been advancing persistently since the first of the year. While each advance has been for only a small amount, these
changes have come in rapid succession. Between
January 1st and February 14th the price advances
amounted to 45 cents on Corsicana light, 20 cents
on Corsicana heavy, 25 cents on Texas Gulf Coast,
55 cents on Mexia, 70 cents on Currie and North
Texas, and 50 cents on all Louisiana oils. The present range of prices is generally above those paid
for these grades of oil at this time a year ago.
•
•
11
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
:ijltmllllllllllllUtiIiUlmlIlIIiUlIUllllUlUlUllllllltHllllllUlIUIUIIIIIlIIlIlIlIUUIIIIlIiIlIlUlIUIlI.1tlllllllllllllllUIIIIIIIIHIUltumimUllllllilUlllllillilllllllllllUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII."nIIlIlIUIUIIIIIIIIIIIIIIIIIII'u/lIl1l1l1l1l11ll11I1I11I11I11I1I1I11I1I1I1I11I1I1I1I11I1U~
I
i
E
§
OIL PRODUCTION
.January
~
Field:
~
~ North Texas... _......................... ____ ..................
Total
DallyAv~.
Total
Increase or Dffreue
Deeember
Dally Ave.
Total
Daily Ave.
i
i
,
179 ~
7,578
4,102
1,386
Central-West Texas ......................................
rexas C<>astal ................................................
Miscellaneous fields ......................................
2,044,420
3,690,300
3,466,440
279,200
66,949
119,042
111,821
9,006
2,049,986
3,925,210
3,339,306
236,220
66,128 Dec.
126,620 Dec.
107,719 Inc.
7,620 Inc.
6,565 Dec.
234,910 Dec.
127,135 Inc.
42,980 Inc.
Totals, Texas ..........................................
9,480,360
305,818
9,550,720
308,087 Dec.
70,860 Dec.
2,269
North Louisiana ..............................................
2,560,070
82,260
2,723,260
87,847 Dec.
173,190 Dec.
6,587
Totals, 11th District ..............................
12,080,430
388,078
12,273,980
395,!34 Dec.
243,560 Dec.
7,856
iI
~
I
~llllIllIlIIlllIlllUlI1llll11l1l11lllll11l11llllll1mllllllllllllllllllllllllllWII1111111111111111 11 11111111111111111111 1 111111111111""'11111111111111111111111111IIIIIIIIIIIIUllmlllnlltllllllll'. .UIIIIIIIIUlI.1I1II111111I1I1I1111111II1I 1111111111111111111111IUlllllllllllllllilltlllllllillUlllllllllnlllllllllillUlil111IIi'!
rllllll". ' ""lIIltllQllllll lllU lmll"'Ullillmnlllllltl nlllllllllllllllllllll"1I1I1I1I111II11".111'11,"1111111"11" 1111."".11"'111111111"1111111,111111111111,, 11111111,,1111111.,1IIIIIIIIIIIIIunlllllllm.,III.,lllIIllIIlIIlllllllllmlllllllllUIIIIIIIIIUIII""111II1111II1111., IIIIIIII.,lllIlInl llll1ll1"IIIIII';
Ill::i£,;::.,,,.
:=
':N~=::::'~:;~::~~
--ll .,,- '=;:'ll I
!
!
g
- Texas C<>astal ..................................................._.................................................
Mlscellaneous ......................................................................................................
Texas Wildcats ..................................................................................................
•
! Totals, Texas .... .................................................................................................
! North wuisiana ................................................................................................
I
46
36
37
33
36
10
13
27
27,2152,855
268
346
225
121
44,192!
27
17
10
106O!
45~52
I
January total s, di stricts......................................................................................
373
242
131
, December totals, di stricts................................................................................
609
351
158
59,114'
~,lIImll"IIIIII.lIIl11ll11l1lJllllllllllllllllllllllullllllHmIIlIIlIIlJIUlIlUlIIIIIIIIIIIII1IIIIIIIIIIIIUIIIIIIIlIlUllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllili111I11I1I1I1I1I1II1I11I.,UIIIIIIIIIIIIIIIIIIIIIII.U'..III11U1I11I1I1I1WlIlIlIlllUIU'IIII11I1I1UIIIIIIIIIII'IIIIIIUIIIIIIIIIIIIIIIIIIIIIIII~
: _ IIIIIII'IIII .. lIIln'IIIIIIIIIII'"IIIIIIIIIIIIIIIIII .... II IIIIIIIIIIIII"' .... ,IIIIIIII. II.1I1I1ICI'IIIIIIIII_
'IIIII .... ,n"IIIII.IIIIIIIIIMIIIIIIIII.. lllllllllm ll" lllIInllllllllllllllllllll..1II11111. ."IIIIIIIIIIIIIIIIIIIUIIUIIIIIIIII"IIIIIIIIIIUIIII" lIIlll11l111l1nllllmllllllllnllllllltll,'"inlille'
!~ri?;~E';~;~-}~ ~flr '" 'iii~~~~~~~~~~~~:;;~:]! lBI
North Texas (41 gravity and above) ........ 2.50
•
~
·1922 prices for North Texas oil are not comparable wi th 1923 prices, due t o the fact that this oil was not pur- ~
= chased on a gravity basis during 1922. North Texas Crude on February 15, 1922, was selling for $2.00 per barrel =
:
~
~1II"1II"'''IIIIIII''''IIIIIIIIIIIItIIIIllIll''IIIIIMlllllllllllllllllllunlllllll111'"11111111111111111111181111111111111111111111111111111111111111111111111111I111I1I1II11111I11II11111II111II1111I1I1I111111118U1 11111111111111111111111111111111IIIIIIII"IIIII'''lIIlllmll'lllllllnlllllllllllulIIllllllI,"lIlIIllllIlIIlIIllllI~
(Oil
s tatis~cs
compiled by The Oil Weekly, Houston, Texas.)
LUMBER
•
After the year-end lull in the lumber trade a
marked improvement was noticeable in both production and distribution during January. While the
production rate of Eleventh District pine mills was
16 per cent below normal during December, the increased activity of the mills brought the actual production for January to one per cent above normal
production. The extent to which deliveries were
made was evidenced by the fact that shipments coni:iiliied nine per cent above production despite the
large gain in the output of the mills. The retail
yards have again come into the market and are
placing orders in a large volume. Orders received
at the mills during January were 36 per cent above
normal production as against 4 per cent below normal production during December. On account of this
unusually large volume of orders, unfilled orders
on hand are rapidly accumulating and stocks at the
mills are dwindling. On January 31st the unfilled
orders on the books of 39 mills amounted to 114,131,-
12
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
654 feet as compared to 93,990,532 feet on the books
of 40 mills on December 30th. Stocks on January
31st were 12 per cent below normal as compared to
7 per cent on December 30th.
The stronger demand for lumber has brought with
it a decidedly stronger market. Prices on all grades
of lumber have been advancing. The more conservative mill men are freely expressing the hope that
there will not be a runaway market, as th ey fear
such a market would place a serious check on the
present building activity.
~1I1n"''''''''''''''''II_'''UII"",,,,,'
....''n,,"_,,,,.''''''m,"..... IUtIIII'''mlllllU'''ll,,,,"m'''''',,""""111,,11111'_"',"
JANUARY PINE MILL STATI::ICS
1 Production
Numbe r of reporti ng mill s.......... .
.......................... -.......... 97,610.098 feet
.-_-0
:I:
1_
--0
,~ Ship
ments ........................................107,260,119feet
Orders ..............................................132,055.799 f eet
,i
§
I_
--
.
--i_ -
o
_
~
•
i
~:::~:f
~rr~~r~~J~~
. .31.S.t :::::::::::::::1~~:m:~~~
~:::
Stocks, Jan.
31st.....................
.........232,111,826 feet
No rm al stocks .................................. 263,401,260 feet
Shi pments above produ cti on........ 9,650,021 f eet:= 9 %
Actual producti on above norm al..
853,179 f eet== 1%
Orders above normal production.. 35,298,880 feet==36%
j Stocks below normaL ...................... 31,289,434
feet=12%
m ... _ .......... " ............... _
_ _ _ _ ... _ _ . .I _ I I '......IlI"'.....
:I:
§•,..
o
.
~
~
~
.....•
BllLDING
Building operations in the larger cities of the rus- January valuation was 39.8 per cent greater than
trict evidenced renewed activity during January. during the previous month.
There were 2,617 permits issued, with the total costs
The present year gives promise of being an exof construction estimated at $6,392,015, which com- cellent year for the building industry. The Archipares to 1,691 permits issued at these cities during tectural Forum, in its survey of building activity in
January, 1922, wit h an estimated valuation of $5,- 1923, shows that the architectural offices r eporting
038,933. The January valuation showed a decline on contemplated construction in Texas actually have
of 33.9 per cent f rom the December valuation, but 409 proj ects with an estimated cost of $31,387,000
the exceptionally large valuation for December was which have progressed sufficiently far in negotiadue to the issuance of a blanket permit at Fort tion to practically insure the beginning of construcWorth on December 30th for $5,100,000 covering tion within the year 1~23. A table showing the
construction during the year 1922 in the newer por- numbers and value of projects handled by the reporttions of the city for which permits had not pre- ing firms according to the several classes of buildviously been issued. Aside from this permit the ing is presented below.
~.. , ....
•
•
.. " ... lI m lU ' ..... IIIIII 'lIIm . .. 'III IIIIII' m .... .. .. 'm.m .III ... II ........... .. n ltllllm ll ' .......... lIl11ml ..... m n m lllll .... ..."' .. " ............... " .... II .... O .. II ... " .... III II1 ... . .....UlJa1l1I1lO. n ..... IIItIII I.. ' ... I ... III ... UlUIll .... IIIIUI I....... llm .. mll .... II .... III ... ftllll.~
;i
~
~,
BUILDTNr. PERMITS
~
I;
I~
I
I
=
i
I
I
..,,, .. ""'''''''' .. 111111 11111111111 .. '' .... 111111 .. 111111111111 11111 111111 11111111 .. .... 11111111 .. .... 11111 .. 11111111111IIII IIIU .. IllIll IUII .... II IIIIIIIIII IIIIIIIIIIIIIII'IIIIIIIII ... IIUIlIllIl .. III. IIIIIIIIUIl ...... IIIU ..... UIlIUIllIUIII ....... IIIIIIIII'ullm .m .. m ..... lllUlII ... IIIII'IIIIII .. III .. UIllIIll" ..... III'i:<
~"' .. UIll .. I.... II .. IIIIIIIIIIIIIII IIIIII IIII IIIII .. IllIl IUIIII .. II I11' .... II .. III .. II .. nllllllllllnlllllllll1II1I ..... I1 .. .... II III."'..... " ... "IIIIIIIftII .. lln . .. lIlIlIIn ... IIIII ................... IIIIIHlIIIII III ....... IIIIII.III ....... IIIIIIIIII ... IIII .. III ....... III' ....... 1I .... III .. IIII .. Il IllIIll " . II II."II .. III .. III~
I
I
SURVE~o~~I~~~~D~: ~~~i~;c~~~(~~~OR 1923.
§
Dwellings
(U
nder $20,000
in incost)....................................................................................................
............
Dwellings
($
20,000
to
$
50,000
cost)................................
...
.
.......................................................................
Dwellings (Over $50,000 in cost) .........................._......... _................................................................ .............
~
Clubs and Fraternal Buildings ................................. _............. _........................... _..............................................
!
§
; ~~:e~~~~~ . .~~~.l.~.i.~~.~~~::~::::::::::::::::::::::::::::::::::::::::::::=:::::::.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
§
ChuTches ..............................................................................................................................................................
! ~£lfk~J~il~~~~~~o~l.~~.~~~~r~~:: : :::::::::::::::::::::::::::::::::::::::::::: :::::::::::::: : : : :::::::::::::::::::::::::::::::::::
§ Office Buildings ......................................................... _.............................................,...........................:::::::::::::::
I§
Banks ..................................................................... ...............................................................................................
~~~~~~~s caO~~e\~~tf~~ ~~~~~es~.~~~.~.i.~~.~:::::::::::::::::=::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Stores, Department-Retajl, etc .................................................... _................ ...................................................
I
Total ................................................... .........................................................................................................
§
~ Industrial- Factories, Warehouses...................................................................... .... .........................................
E Automotive- Public Garages and Auto Sales Buildings ..........................................................................
:~j~~
12731
5
4~
15
30
1i
126
I
Valuation
$
I
1,422,000
§
823
,000
§
550,000 §
~:~~~:ggg ;
2,295,000 §
1,521,000 §
3,~t~:m !
4g19
655,000 i
1,855,000
§
6,~~~:ggg
;
417,000 ~
409
$31,387,000 !
18
18
2,572.000 ~
882,000 E
,UIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII .. IIIIIIIIIIII1I11I1I11I1I1II11I1I1,IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIJlIIIII111,1111111111111111111111111111111111111111111 NIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIII""HIIIIIIIIIIIIIII""IIIIIIIIIIIIlIIIIIIIIIIIIIII"",,"1II1I1I1I1I111111111111111111111111"""IIIIIIIIIIIIUIIIIII""-;;
•
•
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
13
SUMMARY OF NATIONAL BUSINESS CONDITIONS
Compiled by s"e Fede"l Reserve Board u of February 24.
IQ2'.
Further increase in the volume of production in basic industries to a level higher than in 1919 or
1920, a continued advance in the plices of many basic commodities, additional borrowing from banks for
commercial purposes, and somewhat higher money rates are the principal recent developments in the business situation.
PRODUCTION
Production in basic industries, as measured by the Federal Reserve Board's index, was 6 per cent
higher in January than in December, and reached a volume exceeded only once in the past, in May, 1917.
Production of steel ingots and of anthracite coal, and mill consumption of cotton, showed particularly large
advances, and most other important· industries increased their output. Building operations have been
maintained on a large scale.
The expansion in production during January was accompanied by a substantial increase in freight
shipments. Car loadings of forest products, reflecting the continued building activity, reached the highest
monthly total on record, and loadings of merchandise and miscellaneous commodities were higher than in
any January of the past four years.
Industlial employment continued to increase during January, and shortages of both skilled and unskilled labor were l·eported by textile mills, steel mills, and anthracite coal mines. More wage increases
at industrial establishments were announced than in December. There is stilI some unemployment in
states west of the Mississippi. In industlial and commercial centers there has recently been a larger demand for office workers, although throughout the country there is much unemployment in this group.
•
PRICES
The index number of the Bureau of Labor Statistics computed from the wholesale prices of about 400
commodities including finished and semi-finished products as well as raw materials, showed the same
average level of prices in January as in November and December. Between December and January the
prices of clothing, fuel, metals, building materials, chemicals, and house furnishings advanced, but these
advances were accompanied by declines in farm products and food, so that the combined index remained
unchanged. During recent weeks the prices of a number of basic commodities advanced rapidly and in
many cases reached the highest points since 1920 or the early part of 1921. Among commodities reaching
new high levels for the current movement were corn, beef, cotton, wool, silk, hides, lumber, rubber, linseed
oil, copper, lead and pig iron.
TRADE
An active distribution of goods for this season of the year is indicated by reports to the Reserve
banks both of wholesale and retail dealers for the month of January. Sales of department stores in over
100 cities were 12 per cent larger than in January, 1922. Inventories for January show that there has
been no large increase in stocks of goods held by department stores, and the rate of turnover continued
rapid. In wholesale lines there were particularly large sales dming January of dry goods, drugs, hardware, and farm implements.
•
BANK CREDIT
The larger volume of commercial borrowing at member banks in recent weeks has been contrary
to the usual trend of the season. Commercial loans of reporting member banks on February 14th were
$243,000,000, or 3 per cent larger than at the end of December, and 7 per cent above the level at the end
of July, when the general demand for credit first showed an upward turn.
This increased demand for credit at the member banks has resulted recently in an increased volume
of borrowing by the member banks at the Resel·ve banks, chiefly Boston, New York, and Philadelphia. On
February 21st the loans to member banks were $628,000,000, or $248,000,000 higher than in midsummer.
During the same period the volume of government securities and bankers' acceptances held by all Federal
reserve banks declined 8160,000,000, resulting therefore is a net increase of $87,000,000 in the loans and
security holdings of the Reserve banks.
The volume of Federal reserve notes in circulation, which showed the usual post-holiday decline in
January, began to increase on January 31st, a week earlier than last year.
Money rates also showed a tendency to become firmer, especially in recent weeks. The open market rate for commercial paper, which was 4 per cent last summer, rose during February from a range of
4%,-4% to a range of 43,4-5 per cent. On February 23rd the discount rate on all classes of paper at the
Boston and New York reserve banks was advanced from 4 to 4% per cent.
14
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
VOLUME
BANK CREDIT
MILU()fI!I or' DOlLA"$
M ILLIO/'IS 0' DOUA JIIS
or PAYMENTS
BY CHECK
CHECKS DRAWH ON SANKS IN 140 CENTERS .
NEW YORK NOT INCLUDED
IIILlION 5 Of" DOllUS
DOlLARS
ALI.. nOERA!.. RESERVE eA)! KS
•
IUIONS
00
32
3'00~----~~--__~______~______~____~~OO
z8
2.
z4
24
40
,~~
3~'~-I~·~t'~·~-,~\\)\~~----+---~~
2500
I Il \
i
I'" ;7'.~
••;.*y •
.
•
uoo
"C
...
~~'f./1/
0rtS 1\.
I.
:
'
to
2000'~------~-----4--~r--+------~----~2000
':
"."
'500,~------~------~----~'~'i-:C7~C-+-----~1~0
• EAItNlliG
ASSZTS
.
.:.;.,:...........vJ':.
-+______-+____
'OO,~______~____~~____
1921
z0
.1
( HONTltLI" Ave"",GC
1922
1923
2
OO~
",.) -/00 )
PutCENT
I6
W
I2
,
•
4
o
1919
1922
192f
1920
or PRODUCTION
1923
o
IN BASIC INDUSTRIES
CDM81NATION 0,. 22 INDIVIDUAL. StPl.I[S
CORIUCT(O I'"OR StASONAl. VARIATION
,..... a"T
'rJ!: CO~T
(~l' .IOO)
0
'80
'40
I40
12 0
I20
200
100
1\
~
I 50
'00
A
VV
~
\
}-..
80
/'
I
VY
I00
80
'-.I'
60
•o
40
40
z0
2o
I 00
,o
50
lAT£ST '1 UIU -
o
1919
Note:
1920
•
2 50
r\,
"0
V'vV
12
INDEX
300
2 '0
.Afi
•
IV
PRICES
PEA CUtT
20
4
INDex NUMBERS or WHOLE:SAL.E PR ICES
U. S. BUREAU Of LABOR STATISTICS
300
•
vvvv
~,OO
01L-~__~__~-L~~-L~~~~~~0
1920
"
t•
ICOOI~------~------~-------+----~
~--+-----~IOOO
1919
•
1921
1922
1923
Baee Adopted by United States Bureau of Labor
•
Stau.ti~
•
0
1919
1920
1921
1922
1923
•
@FedFRASER