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:..'11111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIHllllllllUIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIII II IIIIIIIIIIIIIIIUIIIIIIIIIIII1 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IllIlIIIIIIIIIIIUIIIIUIIIIIIIIIIII IIIIIIIIIIIIIIIIIII III IIII IIIIIIIIIIII IIII ':' MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS IN THE ELEVENTH FEDERAL RESERVE DISTRICT FEDERAL RESERVE BANK OF DALLAS CHAS. LYNN P. TALLEY. . c. HALL- W. j. EVANS. Assistont Federal R eserve Agents. Ch.irmen and Fed eml R eserve A gent (Compiled June 15. "~24) § :l 'lllIllIlllllllIl l lllf, ' 11I1 111 1I 11111I11I11I1I 11111111111111 1111111111111111111111111111111111111111 11111111111111111111111111111 111111111111111111111111111111 111111 11 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 111 11 11111111 11 Il il :: . ,1 11 1111111111111111 111 1111 111 111 11 1111111 111111 111 11111 1111 111111 1111 111111111 1111 11111 1111 111 11111 1111111111 111111 111 11 11 11 111 111111111111111111111111111111 111 111111111 1111111111111111 1111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIII1111111111111111111 11111111111117- Volume 9, N". 5 Dellas, T exes, July I, 1924 T HI S COpy RULBAsn u POR l' UDL I ~ CA T ION I N A PTnn N O ON l~A p nn.s July 3rd DISTRICT SUMMARY =~ r" " ' ' ' '"' ' ' ' '' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '''''''''''''''''''''''''''''''''"""'''''''':::''':'::::::::''::'':'':~::'~:..''''.''''''''''''.''''''''''''""'''''''''''''.''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''_='= __ ;=_ __ !I Eleventh Federal Reserve District ~ I I i I i Bank debits to individual accounts (at 16 cities) ....... :................ ~:~:;;:B~~:l~~~s s~e~~~b·~~..b~~k~..;t·~~d·~f ..~~~th:::::::::::: Reserve Bank ratio at end of month................................................ ~_.=_ Building permit valuations at larger centers................................ Commercial failu:res (number) ........................................................ E Commercial failures (liabilities).................................................... ~ Oil production (barrels) .................................................................... = Lumber orders at pine mills (per cent of normal production) $536,442,000 $ 1'5;418;210 62.4% $ 6,231,771 68 $ 720,652 13,396,560 94% ~~~ April $661,719,000 Dec. $ 12;975;416 60.6 % $ 7,319,656 66 $ 881,236 13,025,065 92 % Inc. Dec. Inc. Dec. Inc. Inc. ~~~: 4.6 % 1~:~~ I I ;; I 1.9 points E 14.9 % == 3.6 % 18.2 % = 2.9 % 2 points = 1 _ 1 1","""","""""""""","""""""""""",,,,"""",,,".""",,,,,"",,""",,,,,,,",,"""""""'"""'""'"""""''''"""'"''""'"'''''""'""'""""'"""'''"''''''""'''"""'"'''"''"'''"''''''""'"''""""'"''''"''"""'''""''''"''''"''''"'111'''""'''''""""","',,"; A slackening demand for merchandise at wholeAdverse weather, which greatly retarded farm operations, the progress of growing crops, and the sale during May was clearly visible. Sales of all ~ales of merchandise in both wholesale and reta:d reporting lines were less than in April, but the gains channels of ' distribution, was an important factor in over a year ago were well in line with those "iJorted the business situation during the past month. Farm- during the earlier months of the year. Conservat ism ers have not only been greatly delayed in the plant- and hand-to-mouth buying were the keynotes of ing of row crops, but also have found it exceedingly trade reports. Department store sales, though difficult to obtain a good stand of cotton, which in somewhat larger than in April, were slightly less practically all sections has made slow growth. than in May a year ago. Another evidence of r eAnother disquieting development in the outlook for duced business activity is found in the steadily dethe district's cotton crop is the menace of grass- clining volume of charges to individual accounts. hoppers and other insect damage, which .seems to For the fifth consecutive month, they have been less be more serious than a year ago. Furthermore, the than the previous month and the gap between this expense of combating this menace and ridding the year and last appears to be widening. Building statistics for May reflected a further fields of grass and weeds following a wet spring, together with heavy purchases of feed and fertilizer, decline in the volume of new construction work, the are reported to be running up the cost of producing valuation of permits at principal cities of the disthis year's crop. On the other hand, late reports trict having declined 15 per cent from last month from the district's grain belt indicate that the yield and 11 per cent from a year ago. That the slowing of the small grains will be heavy and the quality of down is general over the district is shown by t he the product good. fact that nine out of eleven reporting cities shared J. 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 BUILDING PERMIT VALUATIONS COMMERCIAL FAILURES Moving average of building permit valuations at eleven cities in Eleventh Federal Reserve District. Monthly fluctuations in the number and amount of liabilities of commercial failures in the Eleventh Federal Reserve District. DEBITS TO INDIVIDUAL ACCOUNTS LUMBER ORDERS AT PINE MILLS Monthly fluctuations in debits to individual accounts at fifteen cities in the Eleventh Federal Reserve District. Monthly fluctuations of lumber orders at pine mills in Eleventh Federal Reserve District. Normal production=100 per cent. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS in the decline. Despite this fact, however, the volume of buildings under construction throughout the district is still large and continues to absorb the normal supply of skilled labor. A further improvement in the district's failure record was in evidence. The liabilities of firms defaulting during May were 18 per cent less than in April. The statistics for the first five months of 1924 show a net reduction of 33 per cent in the number of failures and 73 per cent in indebtedness involved, as compared to the corresponding period of last year. A seasonal increase in the use of bank credit was 3 witnessed during the past month. Loans of the Federal Reserve Bank of Dallas to its members increased approximately $2,000,000. However, the demand for Federal Reserve Bank credit continues light, the outstanding loans to member banks being $15,563,000 on June 18th as against $31,066,000 on the same date last year. That a large volume of funds in this district is still available for investment is shown by the heavy oversubscription of the June l5th issue of treasury certificates of indebtedness bearing the low rate of 2"%, per cent. Total subscriptions amounted to $22,514,500 as against the district's quota of $3,600,000. Allotments were made to the extent of $7,841,000. CROP CONDITIONS Unusually low temperatures for May and exces~ive l'ain in many' sections of the district have re- Larded farm work and caused slow germination, but higher temperatures and abundant sunshine during the second week of June made rapid progress in field operations possible. Planting and replanting is practically completed and chopping is making good progress. The harvesting of small grains, although retarded 1.0 some extent during the latter part of May and the early days of June, is now well under way, and good Yields are in prospect. The June 1st condition of the Texas wheat crop was estimated at 84 per cent of normal, which forecasts a yield of 13.6 bushels pel' acre, or a total production of 16,483,000 bushels for the state. The condition of winter wheat in New Mexico dropped from 93 per cent on May 1st to, 80 pel' cent on 'June 1st, thereby reducing the prospective yield to 1,672,000 bushels. The average condition of the Texas oat crop advanced from 84 per cent of normal on May 1st to 86 Per cent on June 1st, which is two points above the 1923 figure and nine points above the ten-year average. This figure forecasts a yield of 46,832,000 bUshels for the state, or an average yield of 32.5 bUShels per acre. The Texas cotton crop, which is from two to three Weeks late, made unsatisfactory growth during May. In practically every section of the state great difficulty has been experienced in obtaining a stand. In some localities two and three replantings have not resulted in good stands. The ravages of grasshoppers, lice, and cut worms have materially reduced the stand in some sections. Even where good stands Were obtained the plants have made slow growth on account of cool weather, grass and excessive rain. In southern Texas the boll weevils have made their appearance in large numbers and steps are already being taken to control this insect. The Department of Agriculture in its May 25th report estimated the condition of the growing cotton crop at 66 per cent of normal, as compared ' to 77 per cent on that date a year ago, and 72 per cent for the ten-year average. With but two exceptions the figure reported this year was the lowest during the past ten years. The following condition figures were reported for the various cotton states: r"I~~I:I~~' IIIIIIIIIIIIIIIIIIIIII""111 111111 1111111111II11I1I11I1II1I1I1I~1~1~1:~IIIIIIIIIIII~I~I~I~':"1I1I1II11i1 E ~ ~ i:: = ~ Texas ...................................................... Oklahoma .............................................. Louisiana ................................................ Arizona ......'............................................ New Mexico .......................................... North Carolina ...................................... 66% 58 70 90 89 71 77 % 63 68 92 90 77 .. :::::::::::::::::::::::::::::::::::::: Mississippi .............................................. Georgia .............. ..................... ............... Alabama .................................................. 69 68 70 70 65 70 I ~~·~~~s~~r~~.i.~~ ~ § ~ ~~ ~~ 5 § ~ !=: = § I ~ § ~ rlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllill1111111111111111111111111111111111111111111111111111111111111111111111111111111111IUlIIIIUIUIIlG For the third consecutive month the domestic consumption of cotton has shown a decline as compared to the previous month. Consumption is also averaging considerably below a year ago. The May consumption amounted to 413,649 bales as compared to 480,010 bales in April and 620,854 bales in May last year. It will be recalled that during the spring of 1923 the cotton mills were running at a very high rate. This year, however, some mills have closed down and others are running only on part time. Cotton Consumption MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 4 Cotton consumed during the ten months' period ending May 31st amounted to 4,991,163 bales, as against 5,661,412 bales during the corresponding period of the previous season. COTTON CONSUMED AND ON HAND COTTON GROWING STATES Aug. 1st to May Slst May May May This Last 1924 1923 1924 Season Season Cotton consumed............................................ 289.897 392,585 3,372,479 3,588,305 413,649 Cotton on hand at end of May............ ............ 636,619 898,385 ............ (a) in consuming establishments .......... .... -_ ....... ............ 962,786 1,254,865 ............ (b) in public storage and compresses .. _ UNI'l'ED STATES _ ____ Aug. 1st to May Slst May This Last 1923 Season Season 620,854 4,991,163 5,661,412 ............ 1,157,778 1,634,167 ............ 1,126,711 1,580,219 .. 1111111111111111111111111111111111111111111111111111111111111111111111111111 11111111111111111111 111111111111111111111111111111111111111111111111111111 1111111 111111111111111111111111111111111111111111111111111111111111111111111111111 1111 .111111 11 1111111 11 11 11111111 11 1111111111 11111111111 1111111111111111111111111111111111111111111111111111:= Cotton Movements Cotton J'eceipts at the port of Galveston amounted to only 37,912 bales in Mayas against 68,622 bales during the previous month and 40,998 bales in May, 1923. Exports dropped from 116,101 bales in April to 96,093 bales in May. Both receipts and exports at Galveston for the present season have shown substantial increases over the previous season, exports being 17.7 per cent greater and receipts being 20.0 per cent larger. The export movement through the port of Houston for the current season has exceeded those of last season by 44.3 per cent. jl llll l'llIlIl lIl ll llllIllll lllllllllll llliil~I~I~~~I;:;'III~1~~~~I~II II;~~lil;~~~"~IIIIIIIIIIIIIIIIIIIII~ = ~ ~ i § May ~ 1 COTTON MOVEMENn'S THROUGH THE PORT OF GALVESTON ! ~M~ £ = ~ GrOBS receipts........ ~ ~ Exports .................. Stocks, May 31st.... 37,912 96,093 ~~~ ~ ~~:~~~I ~ § GALVESTON STOCK STATEMENT May 81. For Great Britain................................ ~ POl' France ............... ........................... ~ :For other foreign ports...................... ii Far coastwise ports............................ In compresses ...................................... ~ i 192~ SPOT COTTON PRICES E ; (Middling Basis) i ~ " 5 e ~_~_ i 1i.000 5,'700 8,70(\ 2,000 50,203 § § ~ § § I ~ i.I"""UI::~~:,~I"I;:I;:I;:I;:I;:I;:I;:I;:I;:,;I;:I;;I;;,;;,;;:,;,',;,;;:,;:,;:,;;,;:,;;,;""""""""~:,:,~,~,~,,,,,",,,,~,~:,~,:,~"J ~ I § ~ New York ............................ New Orleans ........................ Dallas .................................... Houston ................................ Galveston ............................ ~ May. 1924 June 14. 1924 High Low 2 . 85 33 1 3209:~~ ~~:~~ 75 30.60 29.15 29.05 31.25 29.90 29.85 31.4(1 30.20 29.85 I i ~ i! i filllllllllllllllllllllllnllllllllllllllllllllllllllllllllllllill1111111111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIUltllltllllll"U.lIIIIIIII~ ~ 'IIIIIIIIIJllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111111111 1111111 1 1 1111111111111 11 111111111111111111 11 111111111111 111'IIIIIIIIIIIUlllllll l lllllll li 1._ i May 81. 1923 100 400 6,800 2,000 53,842 I ~ § ~1II111111llllllllllllllllllllllllllllllllllllllllllllllllllll1111111111'111111111 11111111111111111111111111111 '1111111111111111111111 1111111111111111111111111111111' i Ii ~ ~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1111111111111111111111111111111111111111111111111111111111111I11111I1111U11111'IIIIIIIIIIIIIIMItIIIIIIIIIII~ ~ §'IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111111111111111111111111111111111111111111111111111111111'IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII'I~ • :!,II III III 111111 III 11111 111111 III III 111111 III III 1111111111 1111111111111 III 11111111111111 III III1UIIIIIIIIIIIIIIIIII 111111111111111111111111 1111 1111111111111111111111': ; to M~ns~lst Season \ Season iii 40,998 2,815,497\2,346,227 ~ 73,438 2,762,565 ?.347,820 § .......... 71,603 63,142 ~ 1,Oi!:~~~ 7~N~~ 13,810 1 I ~ftck~~\i~Y"3isL:: i AU~hj~st 23,859 ~:2,~81 ~9;,~46 1,803,155 1,362,731 3,:;~;5 2::;';;7 6,081 Receipts-Gross .... Receipts-Net ........ ~ .'11111111111111111111111111111111111111111111111111111111111I1111111111111111111111I1I1111111111111111111111111llllllllllllllllllllllllllllllllllllllllllllllllllll~ M ay Aug. 1st to May 31st - 'I'hi. -- La.t - SEASON'S1iiC~~~E~~~'i!! :::~T:::~.~"T Receipts since Aug. 1st.......... E Exports: Great Britain .......... § France ...................... 1 -_== ~ J~;:~C~in·~·:: : : : : : : Mexico .................... 6,575,419 1,599,624 672,739 5,568,181 1,493,705 677,873 2'~i~:~~~ 2'~~6:~~~ 8,292 2,100 Total foreign ports 5,191,712 5,211,579 May 31st .............................. 363,997 383,292 1 Stocks at all U. S. por t s, ~ ; _;1" § § ::1"" "_ _ _ " ~ ~1I1111111111111""IIIIII""1111111111111111111111111111111111111111"""11111"111111111111"1111111111111111111"1"1111"11"~ COTTONSEED PRODUCTS As was indicated in last month's issue of the REVIEW, we have inaugurated a reporting system among the cottonseed oil mills of this district in order to present to our readers a monthly summary of price levels in the cottonseed products market as reflected by representative sales. The table presented below shows the results of our first questionnaire covering the operations of 32 mills during the month of May. In interpreting these statistics it should be borne in mind that this is the inactive season for the mills and the products moving from the mills are necessarily small in volume and in many instances represent only retail sales. : 1111111111111111111111111111111111111111 11111111111111111 1111111111 111111 111111111 111111111111111 1111111111111111 111 11111111111111111111 111111 1111111111111111111"':': I;;~:~~:~;a:~:~£g:'~[n;~~:~cl~:l:~~:; I § Linters .................... 4.480,267Ibs. .05 per lb. § :,1111111111111111111111111111111111111 11 11111111 1111 11111 111 111111111111111111 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111, 0 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS As soon as the new crop of cottonseed becomes available and the mills resume operations, there will be published in this section of the REVIEW each month, in addition to the usual statistics covering the output, stocks, and sales of cottonseed products, a special tabulation reflecting the volume of cottonseed purchased by the mills in this district, and the average cost per ton. The statistics on cottonseed and cottonseed prod- 5 ucts compiled by the Bureau of the Census show that the crude oil produced by Texas mills during the ten months' period ending May 31st was SUbstantially greater than during the same period of the previous season, while the total production for the United States this season was slightly less than last season. Stocks of cottonseed products on hand at Texas mills at the close of May were considerably larger than on May 31, 1923. ~_!=_"' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '''''''''''~;:~;;~~~;"'~'~"' ~~';';'~:'~';';~"'::~""~'~';;~:~';';~~i~~'~'~;';''''''''''''''::::''::::~''''''''''''''''I'. Aug. 1st to May B1st ; Cottonseed received at mills (tons) .......".""" ..."." .... " ..................... _........... § Cottonseed crushed (tons) """"""" """"""""""""""""""""""""""""""""" § ~ § § § § Aug. 1st to May B1st :~~n853 s;~~984 3'226'257 :;~033 :~~~ 044 3'192'895 l' 279' 761 954,875 Cru~e oil .produced (pounds)"""""""""""""""""""""""""""""""""""""" 360,804,000 277,436,356 954,434,390 982,773,859 ~efmed 011 produced (pounds)""""""""""".""""""""""""""""".""""""" .. .................. ........ """"""""".,, 797,691,367 874,255,102 ltfe and meal produced (tons)""""",, .. ,,""""""""""""""""""""""""""" 596,000 451,995 1,477,951 1,462,512 L? Is produced (tons)""""" """"""""""""""""""""" """""""""""""._""". 371,000 284,806 915,706 925,576 mters produced (500-lb. bales) """"""""""""""""",,,,"""",,"",,""",," """ 251000 172,706 651,810 596,999 Stocks on hand May 31st' Crude oil (pounds)""""""""""""""""""""""""""" .. "",,,,,,,,,,, .. ,,,,,,,,,,,,,,,,,,". 11110000 3,930,644 40,205,487 14,370,993 Refined oil (pounds) .. "" ..."""" .. """"""""""" .. """".,,""",,",,,,",,",,.,,,,"",, ... ......... :....... :....... "...................... 194,458,531 222,827,794 § Cake and meal (tons)"""""""""""""""" .. "" .. ""."""" .. """""" .. "" .. """" .. ". 28,000 17,214 120,000 112,695 Hulls (tons) """"."."."""" .. """" .... " .. """ .. """ .. ".,,"""""""",, .... ,, .. ,,""",, .. ,," 29,000 18,913 63,000 50,991 § Linters (500-lb. bales) "" .. """"" """"",," .. """",,",,"",,",,"",, .. "",,"",,"""""" 35,000 8,037 122,000 51,652 !! I 51111 1111111 11 11111 111 11111111111111111111111111111111111 11 11111111111111111111111111111 1III,illllllllll ll ll111 11 11 1111111111111 11 111 1111111111111 1111111 111111 111111111111111111 11 111111111111111111111111 11111 111111111111 1111 111 111 1111 111111111 1111 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 LIVESTOCK The timely rains, which fell over practically all of the district's range territory during the past month, greatly benefited the range vegetation. Spring Weeds are now maturing and are giving place to the lUore sustaining summer grasses. Reflecting the excellent condition of the ranges, cattle are fattening rapidly and are expected to be ready for the market in JUly and August. The large crop of calves, lambs, and kids is growing well and only nominal losses have been reported. Shearing of sheep and goats is now practically completed and about one-half of the ~lip has already been marketed. The staple this year 1S long, clean, and good quality, but the shrinkage has been somewhat heavier than usual. The condition of Texas ranges was reported as 93 per cent of normal on June 1st, or a decline of 2 Points during May. There was a decline of 3 points dUring the same period last year. The condition of cattle dropped from 93 per cent on May 1st to 92 Per cent on June 1st. Reports indicate that cattle Will fatten earlier than usual this year if there is SUfficient rainfall to maintain the good grazing. Shipments of fat cattle are already moving from South Texas. The demand for high-grade stocker cattle is improving and prices are more satisfactory than a year ago. The condition of sheep was 95 per cent of normal on June 1st as compared to 98 per cent on May 1st and 100 per cent on June 1, 1923. Both sheep and goats are fattening rapidly since being sheared. Late reports indicate that the lack of moisture in southern and eastern New Mexico is causing deterioration of the ranges. In Arizona, however, ranges are in fair to excellent condition, livestock are im~ proving, and stock water is plentiful. Movements and Prices The receipts of cattle, calves, and sheep at the Forth Worth market were larger in May than in any month during the year, and the receipts of cattle and calves were well above those during May a year ago. The receipts of sheep, however, were considerably below those during the corresponding month of 1923. The supply of hogs was not only the smallest offered in any month of this year, but was below those offered in May last year. Cattle and sheep prices displayed a weakness during the past month, the market being affected adversely by the heavy shipments. During the second week of May some choice South Texas grass steers notched $8.50, but at the close of the month the best were ranging from $6.00 to $7.00. A load of West Texas cows MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 6 touched the high mark of the year at $7.00, but the market suffered a severe decline later in the month. The market for sheep and lambs was weak throughout the month. The top price on sheep for May was only $8.35, as compared to a top price of $10.75 during April. The best lambs brought $15.50 during Mayas compared to $16.00 during the previous month. Hog values reached a top of $7.75 during the third week, but at the close of the month the market had declined to $7.40. ~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1U IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIII 11 111111111111111111111111111111111111111111111111111111111111111 1 IIIIIIIIIIIIIII' E ~1 111l11l1111l11l111111l1ll11l1111111ll1l11l11l11111111111l11111l11l11l1 11111111111111111111111111111111111111111111111111111111111111111111 111111I1 1 111111 1111111 " I~ i ~ ~ ~ FORT WORTH LIVESTOCK RECEIPTS May 1924 April 1924 Loss or Gain May 1923 Los8 or Gain ~ ~ ~ § § § ~ ~ Beef steers ............................ ~ Stocker steers ........................ I~~~~: : '~f:~;~ ~ ~ i; !~~~g ~!~; ~ rm~ I ;: Butcher cows ........................ ~ Calves ...................................... § Hogs ........................................ E Sheep ...................................... ~ Lambs ...................................... ~ ~11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIR TEXTILE Unsatisfactory conditions continue to prevail in the textile industry, and some of the mills are operating on a part-time basis. The production rate of ten textile mills located in Texas reflected a further decline during May, the output being 1,387,781 pounds as compared to 1,725,546 pounds in May, 1923. These mills were operating 104,064 spindles in Mayas compared to 105,900 in April and 91,912 in May last year. The cotton consumed during May amounted to 2,804 bales as compared to 3,291 bales during the previous month and 3,758 bales in the corresponding month a year ago. Orders on hand at the close of May were practically the same as those on hand at the end of April, but were consi'd- g COMPARATIVE TOP LIVESTOCK PRICES ~~~ 1f2~1 $ 8.25 $ 8.2c 8.50 7.00 8.75 7.75 8.35 15.50 7.75 6.50 9.25 7.65 10.75 16.00 ~ ~2~ ~ § $ 9.10 ~ 7.15 6.00 10.00 7.95 8.10 13.75 ~ " § ~ ~ ~ ~ ~ :\111111111111111 111111111111111111111111111111111 11111 11111111 111111111111111111111111111111111 11111 111111111111 11111111111111111111111111111111111111111111111111111" MILLING erably below those on hand at the close of May, 1923. Stocks on hand showed a further increase during May and were greatly in excess of those, carried a year ago. Prices remained generally steady throughout the month. Jlilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllill1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111; = N~~~ ~:~~~::t:~~~~'NGr~::'T'S~~~, ~:~581 Number spindles active...... Nd~~eed' :.~~~.~.~..~~~~.~ ..~.~..~.~ 104,064 105,900 91,912" 1,387,781 1,467,812 1,725,5461 iflllllllll llllllllll l lll llllllllll lllll lllll lll ll llll lllllill1111 1111 11111111111111111111111111111111111 11 1111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIF. WHOLESALE TRADE A general slackening in distribution at wholesale Dry The net sales of eleven wholesale was reflected in reports received for the month of Goods dry goods firms during May reMay. Sales of each reporting line of trade were less flected a gain of 6.2 per cent over than those for the previous month, but the May dis- those of the corresponding month a year ago, but tribution in all reporting lines (except hardware) were 6.0 per cent less than those during April. The was well above that during the corresponding month unusually cool weather during May delayed conof 1923. That the recession from the previous sumer buying of summer goods and the slow movemonth was largely seasonal is shown by the fact that ment of these goods in retail channels was readily the increases over the previous year for the season visible in wholesale distribution. However, the buyfrom January 1st to May 31st were well maintained. ing of summer goods has been greatly increased Retail buying was restricted to some extent during since the advent of hot weather during the early May by the unseasonable weather _ prevailing days of June. throughout the greater part of the month, and this The hand-to-mouth policy of buying continues as in turn adversely affected the purchases in wholea prominent feature of the trade. Many small orders sale channels. are being received, but they represent largely the The absence of forward commitments is still a immediate needs of the retailers. prominent feature of the trade situation. Retailers continue to make purchases on a very conservative While the raw cotton market reflected a downbasis, the general policy being to make replacements ward trend during the past month, the prices on only as the consumer demand arises. cotton goods remained generally steady. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS Groceries Despite the free movement of fresh vegetables, the sales of groceries at wholesale were well maintained during the past month. The May sales of eleven reporting firms Were only four-tenths of one per cent below April sales and reflected an increase of 7.6 per cent over the corresponding month of the previous year. However, reports from some sections of the district indicate that the demand is beginning to decline. As a rUle prices have remained steady, but some items have shown a downward tendency. Successive declines in sugar values carried the price down to the lowest point recorded in two years, but since the first of June the market has shown a tendency to strengthen. Farm A further slowing down in the demand for farm implements was reflected in the May reports received from five firms. The month's sales declined 20.3 per cent as compared to April sales, but showed a gain of 28.6 per cent over the corresponding month of last year. The distribution of implements during the first five months of 1924 has exceeded that for the same period of 1923 by 55.7 per cent. A decline from the previous month is not unusual at this season of the year because of the fact that farmers to a large extent supply their needs earlier in the year and summer buying' represents the needs which arise during the cultivation period. Furthermore, a hesitant attitude generally develops early in the summer because of the uncertainty as to the outcome of the year's crop. This feeling is intensified when any untoward developments occur in the growing crop. Implements Furniture A slight decline of 2.1 :per cent was registered in the May sales of reporting wholesale furniture firms as compared to the previous month, but there was a gain of 14.2 per cent as compared to the corresponding month of 1923. The demand for furniture has been somewhat erratic throughout the present year. During the earlier months of the year sales were below those of the previous year, but during the last two months there has been a more active demand and sales have re- 7 fleeted substantial gains over the corresponding months of 1923. These increases have brought the average sales for the five months of 1924 to 3.3 per cent above those for the same period of last year. While the decline in building has naturally affected to some extent the demand for furniture, the volume is still sufficiently large to maintain the demand for furnishings. Hardware The demand for hardware at wholesale evidenced a small decline during the past month. There was a heavy demand during the early months of the year, but business is now less active. Sales during May were not only 3.7 per cent below those of the previous month, but were 5.3 per cent less than sales during the corresponding month of the previous year. Retailers have felt the effect of the backward spring through the reduced demand for seasonable goods and this caused a slower movement of goods at wholesale. Furthermore, the lessened activity in the basic industries has intensified the uncertainty regarding the future. This has brought about increased conservatism in buying for forward delivery. Following the downward revisions in iron and steel, prices have shown a further weakness and declines have been noted in some items. Drugs. The demand for drugs at wholesale evidenced a small decline during May when the sales of seven firms registered a decrease of 2.7 per cent as compared to the previous month. However, the gains over a year ago, which were reflected during the earlier months of the year, were well maintained du.ring the past month, being 15.8 per cent for May and 15.1 per cent for the five months' period ending May 31st. The substantial increase over a year ago is even more encouraging when it is remembered that the distribution of drugs during the spring of 1923 was very active. Although there was a lessened demand as compared to the previous month, the trade is entering the slack period and dealers report that purchases are reasonably active for this season of the year. Buying on a hand-to-mouth basis is still the ruling policy of the trade as retailers feel that the present condition does not warrant buying in anticipation of future demand. Prices evidenced a slight downward trend. Collections continued irregular. 8 I MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS ! r""III''''''''''''''''''''''''''''''''III'''''''''''''''''''''''''''''''''c'~;;'~i~Io'~''''~;"";'ii'O'L;;;S'~~E"III~~~~EII~'~ii;;'~"";A.';:::""~~~~III"III"''''''''"""'III11I"III"III""I11I""'''I''I'"I11''''''''''~ P""ntag. of rno",... " D",.." ;n ! Groceries ............ _ .................. _.................................... _.......... ___ ___ _ _ ....... Dry Goods ................................. .................... ....................................... ~ Furniture ........ _.................................................................................. ~§== Farm Implements................................................................................ Drugs .................................................................................................... Hardware .......................................................................................... .. 3 § ~ § § 8 0 === § =:,1111 11111" 11 111111111111111 1111 11 111111111111111111111111111111111111111111I11111IH111111111111111111111111111111111111111111111111111"'11II1II11I11I1111II1I11111111 11111111111 1111111111111"'111111111111 11111111111111111111111111111 11 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 ':: 11 RETAIL TRADE While the May sales of twenty-four department stores reflected a gain of 5.9 per cent over the previous month, retail buying during the past month was somewhat backward, due largely to the unseason~ able weather. The month's sales were slightly un~ der those for May, 1923, being the second time this year that the current month's sales have fallen under those of the corresponding month of the previous year. The distribution during the period between January 1st and May 31st this year has shown a gain of only 2.9 per cent over the same period last year. Since the advent of the dry hot weather the demand for summer goods has been more active. Buying has been further stimulated by the ext ensively advertised June white goods sales and other merchandise offered at greatly reduced prices. Stocks on hand at the close of May were only 2.8 per cent greater than those on hand at the close of May last year, and were 4.3 per cent below those on hand at the close of April. Reflecting the lower stocks and larger sales, the ratio of stocks to sales for the five months' period ending May 31st was 481.9 per cent as compared to 493.8 per cent for the four months' period ending April 30th. The ratio of outstanding orders to last year's purchases at the close of May evidenced a further decline, being 4.6 per cent as compared to 5.2 per cent at the end of April. For the third consecutive month, collections have shown an improvement over those of the previous month. The ratio of May collections to accounts re~ ceivable on May 1st was 40.5 per cent as compared to 39.7 per cent during April and 39.3 per cent dur~ ing May last year . ..' 111111111 11 111111111111111 1 11111 1 111 11 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1 111'1111111'11111111111111'11111,,,"'1"1"111111111'11'11'111'1111'1'11111111111111"'11111111111111111 1 111111111 1 11111111111111111111111111111111111 11I1111111I111I1I1I1illlllllllllllllllllll~ ~ ! § § BUSINESS OF DEPARTMENT STORES i Total SalesMay, 1924, compared with May, 1923................................ May, 1924, compared with April, 1924.............................. Jan. 1st to date compared with same period last year........ Credit Sales-May, 1924, compared with May, 1923................................ May, 1924, compared with April, 1924.............................. !=_ Jan. 1st to date compared with same period last year........ _ Stocksi May, 1924, compared with May, 1923................................ May, 1924, compared wIth April, 1924............................. I ~:~~~ ~~ ~!rst:n~in~I~:d~~~ t~ i~~t y~~~;;·P~;;;h~·~~~:::::::::::: I ! i .. .. .. Ratio of Ma¥ collections to Accounts Receivable due and outstandmg May I, 1924...................................................... DallWl Fort Worth Houston All Others Total District ~ ~ 1.2 + 3.9 + 3.3 - 6.7 - 2.4 + 1.0 + 1.5 + 2.7 + 6.4 + 1.4 +14.3 + 1.4 .8 Ii + 5.9 ~ + 2.9 3.3 .3 + 4.7 2.1 4.4 + 6.9 + 1.6 + 5.3 + 8.4 + 3.9 + 15.9 + 4.5 none + 5.2 ~ + 1.5 ~ + 2.1 - 3.5 + 2.4 - 2.5 + 6.1 - 2.5 + 2.1 6.9 + 2.8 § - 4.3 46!:~ 54~:~ 43g 50~:~ 48U 37.6 37.8 43.5 44.3 I i ~ I ~ I 40.5 I ~11II1I1II1II1I1I1111111111111111111111111111111111111111111l1l11l1111111l1l11111IIIIIIIIllllllllllllllllllllll llllllllllllllllllllllllllllllfllllll111111111111111111111111111111111111111111111111111111 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111'1""'111111111'1111111111111111111111111111"1111' FINANCIAL There was a further reduction in the volume of public spending at fifteen of the larger cities of the Eleventh District during May, when charges to de~ positor s' accounts totaled $536,442,000 as compared to $561,719,000 during April and $598,539,000 dur- ing May, 1923. This represents a decrease of 4.5 per cent as compared to last month and 10.4 per cent compared to the same month last year. Bank debits have shown a steady downward trend since Decem~ ber, 1923. ----------------------------------------------------------------------------.----------------------MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 9 ~llIIlIIllllIlIIlllIlIIllIlllllllllllllllllllllllllllllltllllllllllllllllll1111111""'111111111111111111""11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 111111111111111111111111111111111111111'1111111111'11111111'1111111111111111111111111111111111111111111111111 ' ~ ~ Albuquerque ........................................................... ~ il ~ Austin ..................................................................... Beaumont ............................................................... Corsicana ................................................................ Dallas ..................................................................... EI Paso ................................................................... Fort Worth ............................................................. Galveston ............................................................... Houston ................................................................... Roswell .................................................................... San Antonio ........................................................... ~ Totals, Eleventh District ........................... ~ § ~ i ~ I ;; ! CHARGES TO DEPOSITORS' ACCOUNTS E § May, 1924 May, 1928 April, 1924 Inc. or Dee. $ 9,556,000 14,754,000 16,125,000 7,712,000 156,441,000 32,483,000 . 63,183,000 27,483,000 104,914,000 2,012,000 33,168,000 $ 9,534,000 13,967,000 17,133,000 5,560,000 149,039,000 30,723,000 88,715,000 71,738,000 110,940,000 2,709,000 32,529,000 +.2 + 5.6 - 5.9 +38.7 + 5.0 + 5.7 -28.8 -61.7 - 5.4 -25.7 + 2.0 $ 9,002,000 18,780,000 17,443,000 8,021,000 163,104,000 31,250,000 67,689,000 35,024,000 109,092,000 2,021,000 32,706,000 + 6.2 -21.4 - 7.€ - 3.9 - 4.1 - 3.9 - 6.7 -21.5 - 3.8 A + 104 $536,442,000 $598,539,000 -lOA $561,719,000 - ISfl~~:::~. :::~~·~·~~:=:~::=:~:::=:··:~··:~·=. :U!f:m i ~ Inc. or Dec. :tm~!u H~~ :i:~i:m ~ i ~ § E § § § ~ " E E t:n I 4.0 ~ ;; .1111111111111111111111111111111111111111111111111 11 1111111111 11 11111111I11 1 111111111111111111111111111U11I1 ~ 111111I11I1I111I1111"1"11IIIIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1II111111111111111111111111111Hlllllllll lll llllltllllllllltllllllllllN III IIIIIIIIII11111111111111111111""1111111111111 ~ Reports received from accepting banks in this district indicate a small decline in the volume of acceptances executed and which were outstanding on the last day of the month. The total amount of acceptances outstanding on May 31st was $1,529,596.31 as compared to $1,632,923.75 on April 30th, a decrease of $103,327.44. The amount of this class of paper based on domestic shipment and storage of goods rose from $393,571.25 on April 30th to $477,761.81 on May 31st. On the other hand, the volume of acceptances arising out of import and export transactions dropped from $1,239,352.50 on April 30th to $1,051,834.50 on May 31st. The investments of the Federal Reserve Bank of Dallas in bankers' acceptances showed a further decline cluring the month, being $2,715,770.54 on May 31st, as compared to $10,178,029.38 on April 30th. Acceptance Market. Condition of Member Banks in Selected Cities. Loans and net demand deposits of member banks in selected cities continued to decline during May. The loans of 51 banks on June 4th amounted to $262,895,000 as compared to $267,349,000 on April 30th, showing a net reduction of $4,454,000 during the five weeks' period. Net demand deposits amounted to $215,158,000 on June 4th, which was $3,602,000 less than on April 30th. These banks reduced their investments in government securities $5,928,000 during the month. Their bills payable and rediscounts with the Federal Reserve Bank were increased $1,366,000 during the month, being $5,733,000 on June 4th as compared to $4,367,000 on April 30th. The l'atio of loans to net demand deposits decreased from 95 per cent on April 30th to 93 per cent on June 4th. ~llllIlllIIllIllllIIlllIIlIIlIIlIllIllllllllllllllllllnlllllllllllllllllll11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111' : ~ ~ ~ June 4, 1924 Number of reporting banks.................................................................... § U. S. securities owned.............................................................................. ~ All other stocke, bonds and securities owned........................................ ;; Loans secured by U. S. Government obligations................................ § Loans secured by stocks and bonds other than U. S. Government ~. obligations .......................................................................................... § 6. All other loans............................................................................................ § 7. Net demand -deposits................................................................................. ~ 8. Time deposits.............................................................................................. § 9. Reserve with Federal Reserve Bank...................................................... 1. 2. 3. 4. 5 I ~~: ~ " § CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES ~~ifoP:liob~~sa(~) r~:~~~ud~~::Jhd~;:si~:~..~~~.~~~..~.~.~~:::::::::::::::: *Loans include only items 4 and 6. May 30, 1928 51 $ 47,299,000 13,924,000 3,316,000 52 $ 60,582,000 9,036,000 5,400,000 62,911,000 196,668,000 215,158,000 86,102,000 23,036,000 46,927,000 195,820,000 220,570,000 73,667,000 24,147,000 5,733,og~% 7,484,Og~ % April 80, 1924 ~ 51 ~ $ 53,227,000 g 12,927,000 ~ 3519,000" ' E 59,502,000 ~ 204,328,000 § 218,760,000 g 85,841,000 ~ 22,732,000 § 4,367,Ogg% I § ollllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllill111111111111111111111111111111111111111111 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111I111111111111111111t111111 1l 111111111111ll11l111l11111l1111111~ Operations of Although there was a further exthe Federal pansion of $2,442,794.92 during the Reserve Bank. past month in the volume of credit extended by the Federal Reserve Bank to member banks, the total outstanding loans, which had reached $15,418,210.86 on May 31st, was $14,911,670.46 less than on the same date last year. The demand for Federal Reserve Bank credit during the present year, while not as pronounced as a year ago, has shown a gradual upward trend. That 10 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS a greater number of our member banks are in a position to finance their customers out of their own resources is evidenced by the fact that only 281 banks were owing the Federal Reserve Bank on May 31st, as compared to 423 banks on May 31, 1923. Due to the continued reduction iu. our holdings of bankers' acceptances, the total volume of bills held by this bank declined from $23,153,445.32 on April 30th to $18,133,981.40 on May 31st, distributed as follows: Federal reserve notes in actual circulation declined slightly during the month, being $43,221,870 on May 31st as compared to $43,685,015 on April 30th. The reserve deposits of member banks amounted to $47,910,675.63 on May 31st compared to $48,622,070.50 on April 30th, and $47,028,552.11 on May 31st last year, representing a decline of $711,394.87 during the month, but an increase of $882,123.52 during the past year. Net demand deposits of all member Deposits of Member Banks. banks in the Eleventh Federal Reserve DistIict declined $26,237,!i Member banks' collateral notes secured by § = = ~ U. S. Government obligations ................ $ 1,860,900.00 ~ 000.00 between April 23rd and May 28, 1924, and I Rediscounts and all other loans to mem- 13,557,310.86 time deposits decreased $2,581,000.00 during the bel' banks .................................................... ~ Open market purchases (Bankers' accept~ same period. As compared to May 23rd last year i ~ ances) ........................................................ 2,715,770.54 5 ~ there was an increase of $8,546,000 in net demand ~ Total bills held .......................................... $18,133,981.40 § deposits and $14,473,000 in time deposits. ij'IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlII IIIIIIIIIII QIWIIUI1111111111111111111111111111 111111111111111111111111111111111111111111 IIIUlIIIIIIIII III~ =.'UIIIIIIINIUIUWUIIIUIWItIHIWIIlIfUIUUUUIII IIIIIUIIIIIIIIIIIIIIU"lIl1nl1l11l1l1lll1I1""IIIlIIIIJII IIIIIIIII IIIIIlIIIII IIIIIIIIlIJIIIIIIIIIIII:! ! UIII IIII IIIIIIIIIIIIII IIIIIlI IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1 1111 1111111111111111111111111111111 1111111111111111 11111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUllllttlllllllllllllllllllllllUIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111. § § § § DEPOSITS OF MEMBER BANKS (OOO's Omitted) L ~ J It " 6 ! 1 ; i l 4 ;; I I 11I ~ A ~ M 1 ~ nllllllllllll llllllll ll lll llllllll lllllll llll llllllllll llllllil l11111 111111111111111111111111 111111111 1111111111111 111111111111111I11I1111I111I111111111111111111111111111i1l11l11l111111 11 111 1111111111111111 1111111 11 1111111111111111111111111111111111111111111111111111111111111111111111111 11111111111111111111111111111111111111111111111111 III ,"': Discount Rates. There is presented below the prevailing rate charged during the sev- en-day period ending June 15th by the commercial banks in the cities listed below. ~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIJIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII"~ § I I I ! JUNE DISCOUNT RATES Prevailing" Rates: § ~ I ~ ~ Q ~ Rate charged customers on prime co·m mercial paper such as is now eligible for redis(~)n~u~~~~ t~8_lo~g~r~a;s~~~~~...~.~~~.......................................................... Rate Cha~~~l~~~~~s4t~ ~~~~hi;~~k~;··~~~~;~d··by··biii"~··;~~~i~~bi~:::::::::::::::::::::::: Rate on ordinary commercial loans running 30-60-90 days secured by Liberty Bonds and certificates of indebtedness (not including loans to enable purchase of bonds)............................................................................................................ Rate on loans secured by prime stock exchange or other current collateral: (a) Demand ................................................................................................................ (b) Time ...................................................................................................................... 4%.-6 .s ~ l S j ~Jl ; r;.i ... ~ ... ; g ~ I ~ ~ ~ 6 5-6 6-8 6-71 5-~ H_~-~6 6-~ 6-~ 4~=~ 6-7 5-6 8 6 6 6-8 6-7 6-7· 8 8 6-8 6-8 5-6 5-6 6-8 6-8 _ ~~i: ~~ ~~~Ol~!~s:.~~~~. ~.~~~~~~..~~. ~.~.~.~~.~.~~.~. ~~~.~.i.~~.~:. ~.~~::::::::::::::::::::::::::::::::: 5%-~ . ~ 6-~ 7-~ t~ I = E 6-7 I § 6-7:: 6-7 § 8 6- 1 illlIIlIlIIUllIIlIIlIlIIlIIIllIllIlIllIllIll lIlllIlIIlIIllIllllIlUlIlIllIllIllI lIllIlll 111111111111111111111111111111 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111"'11111111111111111111111111111111111111111111111111111111111111111111111111111". MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS Savings Deposits. Reports from 111 banks in the Eleventh District which operate a savings department reflect an increase of 11.3 per cent in the amount of savings deposits as of May 31st as compared with those of the same 11 date last year, but decreased three-tenths of one per cent from those of April 30, 1924. The number of savings depositors of 102 reporting banks on May 31st was 222,009 compared to 220,193 on April 30th, and 194,815 on May 31, 1923. ~11I11II 1 11111I11II1I11111111111111111111111111 1 1111111111111111111111 111 1 1 1 1111111111111111111111111 1 11111 1 11111111111111111111111 1 11111111 14 11111 1 11111111111111 1 1111111\ 111111 1 1111111111111111111111111111111111111111111111111111 1 1111111111 1 11 1 111111111111 1 11111111111111111111 1 111111111111111111111111111""11 1 111111111111111111111111111' .. ~ I SA VINGS DEPOSITS itT.:1:': M.,",. " " '~,~' A~" M.,",. " " '". " " I ~ ''::;.~' 4 6 4 7 3 14 6 2,369,871 12,002,976 6,824,871 7,754,102 7,258,618 21,209,081 9,858,510 1,961,300 10,689,289 5,289,820 7,223,946 6,800,360 18,639,481 9,217,675 +20.8 + 12.3 + 29.0 + 7.3 + 6.7 +13.8 + 7.0 2,308,179 11,872,250 7,380,590 7,625,688 7,292,621 20,862,763 9,899,818 Wichita Falls .................................................................. :........ All others ................................................................................... 3 54 1,200,671 15,972,170 2,324,827 15,198,784 -48.4 + 5.1 1,283,847 16,048,307 -6.5 =~ .5 _ 'rotal ................................................................................... 111 98,517,832 88,531,249 + 11.3 98,790,000 .3 ~:~~~:.~~:~. :::::::: : : : :::: ::::::::::::::;::::::::::::: ::::::: : : :::::::: ::::::: ::::::: =e: I ~ 1~:g~~:g~~ ~:~~g~6 +~~:~ 1~:~~~:~~~ +2.7 + 1.1 - 7.5 +1.7 - .5 + 1.7 - .4 = ;/ Beaumont .................................................................................. ~ Da llas ....................... ................................................................. : El Paso ....................................................................................... ~ Fort Worth ............................................................................... § Galveston .................................................................................. ---==~Ii San Antonio ............................................................................... Houston ..................................................................................... ~ ;; § ~ ~-__=- ~_ +~:~ I :.11 1 11 11 111 111 111111111 1111 111111 1 11 1 11111111 1 111111111 11 111111111111111 1 11111 11' 111 1 111111 1 1111111111111 11 11111 1 1111111111111111 1 111111 1 1 1 111111111111111111111111111111111111111111111111111111111111 1 /1 1 111111 1 1 1 111111 1 111111 1 1111111111111 11 11111 1 11111111111111 1 1 1 1 1 1111111111111111111111111111111111 1 11111111111 I I IIIII I II I "I I IIIIIIIIIIIII~ glllll l llllllllllllllllllllllllllllllllllllllllll ll lllllllil11111111111111111111111111111111111111111111111111 1 1111111111111111111111 1 11 1 11 1 11111 1 111111111111111111111111111111 1 11 1 1I1111111111 1 11 1 11111 1 11111111111111111111111111111111UIIIII111111111 1 1111111 1 11111111111111 1 11111111111111111111 1 1111111 IIIIIIIIIII IIIIIIIIII I II I IIIIIIIIIIIII~ § = NUMBER OF SAVINGS DEPOSITORS I § ~ ~ i :"~~~~gOf Banks Beaumont .................................................................................................................................. § Dallas ......................................................................................................................................... ~ El Paso ..................................................................................................................................... May 81. 1924 3 4,567 6 40,034 "20,667 May 31, 1928 April 30. 1924 I ~ ; 3,741 34,233 19,001 4,591 ~ 39,136 ~ 20,697 ~ ; ~~l;e!'~~h~~~ ~~:~:::: ~ ~ ii:~~~ § Houston ..................................................................................................................................... San Antonio ............................................................................................................................. 13 5 45,309 15,970 33,751 13,975 44,778 l! 15,856 ~ ~ WiclUta Falls ........................................................................................................................... All others .................................................................................................................................. 3 52 5,848 38,158 5,438 36,707 5,803! 38,119 I ~ Total ....................................................................................................................................... 102 222,009 194,815 ~ . . .:.. . . ~. ~. . ~...~. . . . : . . . . . . . . . . . . . . . . . . . . . . ....... . . .~.. . . ........ . . . . . . . . . . . . . . . . . . . . . . . ::. ::::::. ::::::::::::::: i I ~~:~e~~~~. . . . . .~~. . . ~. . . . ..~. . . ~. . . . . ~. .~:. ..:~. ~.: . .::~. ~.:.. :..~..~. ~. .:::. :~.~. ~. : . ~:~:. ~:::~:::::::::::::.:::::::::::::::::::::: 3 ~ ;'n 111 g 2~:~~~ ii:~~~ 1~:g~t ii:~~~ ~ 2~:~~~ i I ~ 220,193 f11t1II1II1I1I1 IL1UUIU IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111 11111111111111111111111111 1111111111111111 11111111111111111111111111111111111111111111111111111 11111111111111 111 1111 111111111 1111111111111111111111111111 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 FAILURES For the third consecutive month liabilities of defaulting firms in the Eleventh Federal Reserve District have reflected a downward trend. The liabilities. of insolvent firms during each current month . since November, 1923, have been below those for the correponding month of the previous year. The 58 failures reported during May represented a combined indebtedness of only $720,652, which is the lowest monthly total recorded by R. G. Dun & ComPany since August, 1920. This compares with 56 insolvencies during April which involved a net indebtedness of $881,236, and 78 mortalities in May, 1923, with liabilities amounting to $3,779,959. The number of defaulting firms for the first five months of 1924 was 33.4 per cent less than for the same period of 1923 and the indebtedness involved was only 26.7 per cent of the amount reported during the first five months of 1923. The statistics for the United States as a whole reflected a larger number of failures but a smaller volume of indebtedness. However, during the first fiv e months of the current year both the number of defaults and the amount of liabilities involved have shown an increase as compared to the corresponding period of 1923. 12 ! MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS I gllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllJIIllIIl1I111111111111111111111111 111 11 1111 11111111111111 111 11 111 111 111 11111111 11 1111 1111 1111111111111 111111111 111111111 11 111 11111111111 11 11111111 11 111111111111111111111111111111111111111111111111111111111111I1I111I111II1I1II 11I1II1 11tlllllllllllllllllll lt: COMMERCIAL FAILURES ~ January .............................................. ~ ~ ~ February .......................................... ~=j ~if'h: :=i Total .............................................. r lll lll ll lllllllll llll lll lllllllllllllll ll lllll lllllillI III II1 111 111 11 1111 111 111 11111 11 1111 1 11 1 111 111 11111 1111 11111111 111 111 111111 111 1 111 1 11I 111 111 111111 11111 111 11 1 111 111 11111 11 1 1111 11 111 111 111 111 111 11 1 111 111 11 111 1111 11 1 1/1111 111 111 11 111 111 111111 111 1111111111111 111 111111 11 1111 11 11 1111 11 11 111 111 111 11 11111 1111 11 111 111 111 1111 1;=: 111 111 111 11111 PETROLEUM After having shown an increase in daily average 390 were producers and netted a flu sh production of production each month for four successive months, 132,618 barrels, as compared to 420 completions in the · daily average production of crude oil in the April of which 309 were successful and yielded an Eleventh Federal Reserve District declined 2,022 initial flow of 102,080 barrels. This increase in barrels during May. However, there was a slight drilling operations was largely due to the continued increase in total production during May, due to the activity in the Archer County field, where there ,vel'e thirty-one day month, there being 13,396,560 bar- 188 completions, of which 124 were producers with rels of crude oil produced as compared to 13,025,065 a flu sh production of 19,152 barrels. This improvebarrels during the month of April. Results of spring ment brought the Archer County field into the mildrilling programs were evident in May when there lion bar.rel class, and made it the third largest prowere 641 new wells completed, of which 427 were ducing field in Texas during May. In Louisiana there were 1,700,205 barrels of cr ude successful and yielded a flush production of 137,678 barrels. During April there were only 467 com- oil produced during May, which represented an inpletions, of which 343 were producing wells with an crease of 183,475 barrels, or a daily average increase initial flow of 106,846 barrels. of 4,288 barrels. New production continued to increase, 23 successful completions netting an initial There were 11,696,355 barrels of crude oil pro- production of 5,060 barrels, as compared to 24 produced in Texas during May, as compared to 11,508,- ducing wells with a flush production of 4,766 barrels 335 in April, or an increase of only 188,020 barrels during April. despite the longer month. Daily average production declined from 383,611 barrels during April to 377,301 Crude Oil Posted prices on Corsicana light and barrels during May, due in a large measure to con- Prices. Mexia oil were advanced 25 cents tinued decreases in production in the Corsicanaper bBirrel during May, restoring the Powell field. Drilling operations resulted in in- price which has prevailed since February. Prices on creases both in the number of completions and initial all other Eleventh District crude oils remained staproduction, as there were 597 wells drilled, of which tionary. ~ttllllIlIIlIUIlIlIIlIIllIIIllIlIIIIIIIlIlIlIIlI I IIlIIllIlII1IIIUII1IIJIIIIIIIIIIIII 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111"111111111111111111111111111111111 .11111111111111111111111111111111111111111111111111111111111111111111111111II II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIg ; OIL ay PRODUCTION M Total Daily Avg. April Tota l INCREASE OR DECREASE Daily Avg. Total =:I_~= ~ Daily Average FieldNorth Texas ................................................. Central-West Texas ................................... Texas Coastal ............................................... Miscellaneous fields ................................... 2,583,330 5,809,985 2,266,493 1,036,547 83,333 187,419 73,112 33,437 2,334,645 6,032,500 2,367,460 773,730 77,822 Inc. 201,083 Dec. 78,915 Dec. 25,791 Inc. 248,685 Inc. 222,515 Dec. 100,967 Dec. 262,817 Inc. 5,511 13,664 5,803 7,646 Total, Texas ......................................... 11,696,355 377,301 11,508,335 383,611 Inc. 188,020 Dec. 6,310 North Louisiana ........................................... 1,700,205 54,846 1,516,730 50,558 Inc. 183,475 Inc. ~ § § ~ ! 4,288 1 432,147 13,025,065 = Totals, Eleventh District..................... 371,495 Dec. 2,022 § 434,169 Inc. 13,396,560 fllflllll1llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll1111111111111111111111 1 111111111111111111111111111111111111111111111111111111111 1 111111111111 1 1 11 111111111111 1 11111111111111111111111111111111111111111111111111111111 1 1111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIII I IIIIIIIIIIUlIIIIIIIIIIIIIII II~ 14 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS cent as compared to Ap.ril, and 14.8 per cent as compared with May, 1923. There were 2,620 permits having a valuation of $6,231,771 issued during May, which compared to 3,118 permits issued during the previous month having a valuation of $7,319,650, and 3,075 permits with a valuation of $7,010,064 issued during the corresponding month of 1923. For the third consecutive month the total valuation of permits issued during the period since January 1st was less than that of those issued during the' corresponding period of the previous year, there being a decrease of 4.5 per cent as compared with the same pe'riod of 1923. ,;tlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllli 11111111111 III 11111111111 IIUIIIII IIIIIIIIIII II 1111 11111111111111111111111111111111111111111111111111111111111111111111111111111 111111111111111111111111111111111111111111111111111111111111111 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111£ ==============~==============~B~U=I~L~D==INGPERMITS May, 1924 No. Austin .. " .......... _..... "._." .... "."" Bcnumont.... _.. " .. " ......... " .... "" Dallas ..................... """ ". " " .... ,,. EI P ""o.............. .. "." ... " .... " .... . Fort Worth ...... " ....... " .."" ..... . Galveston .................. " ........ ".". Houston ........... "." ..... "" ...... ".". Port Arthur.... _.. "." .... """ ..". San Antonio.... _.. "." ... """" ... Shreveport.. .. _... _." ........ ""..... . Waco._ ........... _..... "._ .. "" ...... "" ~ Valuation 45,140 82 167,67 4 216 2,726,780 365 192,377 68 784 ,454 211 157,05J 308 999,827 592 96 ,515 156 525,45J 826 424,741 284 112,261 67 --- ---- May, 1923 No. Valuation lOS 288,387 15J 108,812 414 1,894 ,824 106 268,13C 344 1,092,96 J 35 J 281,806 697 1,085.087 165 183, 787 366 1,062,540 315 613,828 68 179,907 Inc. or Dec. -81. I -!- 54 . J -!- 43. 9 -28 .3 -28. 2 -44. 3 - 7.9 -47. 5 -50. 5 -30. 8 -87. 6 April, 1924 No. Valuation 56 117,255 237 221,450 537 2,221,890 81 204,55 0 243 661, 802 35a 260,058 647 1,961,314 197 188,270 888 717, 866 805 534,13J 7! 237,070 --- Inc. or Dec. -61.5 -24.3 -!-22.6 - 6.0 -!-18.6 -39.6 -49.0 - 47. S -26.8 -20.5 -52.6 First Five Months 1923 1924 No. Valuation Va~uatlon No. 23& 1.070 2,168 873 1,Oe6 1,628 2,99f 900 1,788 1,449 325 - - - --- --- 572,628 1, 286,540 12,836,792 839,946 3,266,095 1,718,208 7,553,457 749, 276 8,656 ,925 4,087,173 955,697 297 671 2,259 487 1.49J 1,548 2,866 861 1,696 1,487 250 --- 1,067,594 1,137,61G 10,440,722 1,198,890 4,090,688 844,854 10,361,699 1, 467,405 3,986,699 8,928,855 649,024 Inc. 0 r Dec. - 46. -!- 8. -!- 22. - 30. - 20. -!- 108. - 27. - 48. 8. -!- 2. - 47. - 3.118 7,8J9,656 Total...._ .... _........... """".""".... 2,620 16,281,771 8,076 7.010,064 - 11. 1 - 14.9 18,962 87,421,732 13,9 0& 89,168,585 4.5 E ~IIIIIIIIIIIIIIIIINlllllllrllllllllllllll l lllllll llll l ll l 1 111111111111 1 11 1 1111111111111111111111111111111111111111111111111111111111111111111111111111111111 1 111111111111111111111111111111111111111111111111111111111111111111111 1 111111111 11111111111 1 11 11 1111111 1111111 1111 1 11111111111111111111111111111 11111111111111111111111111111111111111';' CEMENT Shipments of Portland cement from Texas mills declined 5 per cent in Mayas compared tb April, which is in contrast with an increase of 31.9 per cent in April over March, but there was an increase of 3.8 per cent as compared to May, 1923. There were 412,000 barrels of cement produced at the Texas mills during May, as compared to 404,000 barrels during April, and 375,000 barrels in May, 1923. Stocks at the mills at the close of May were 8.6 per cent lower than at the close of the previous month, but were 31.1 per cent in excess of those at the end of May, 1923. During the five months' period, January 1st to May 31, 1924, production of Portland cement increased 3 per cent as compared to the same period of the previous year, and shipments were 3.6 per cent greater than those of the same period of 1923. Ii~i§li~~:~!~~~~;~;.~~N':";;i~;iT::!;jf:(~~~~O:':~~;;:~~~~~M;~~;~;'~ ~:.;g '~~:~~ I ~, 1 11111111I11 11111 111111111111111111111111 1 11111111111111 1 1 11111111 11 1 11 111111111111111111111111 111111 1111 1111 111 1 111111111111111111111111111111111111111111111 1 11111111111 1 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1 111111 1111I1111111111II1111 1I 111111III~ .. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 15 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by (he Feder.l Reserve Board os of Moy !:I4. IQa4.) Production of basic commodities and factory employment showed unusually large declines in May and were considerably below the level of a year ago. Purchases at wholesale and retail also declined during the month and were somewhat below last year's volume. Commercial loans at membe~ banks decreased and there was a further decline in money rates. PRODUCTION The Federal Reserve Board's index of production in basic industries, adjusted to allow for seasonal variations, declined about 10 per cent in May to a point about 18 per cent below the peak reached a year ago. Particularly marked decreases were shown for production of iron and steel, and mill consumption of cotton. Output of anthracite, cement, and tobacco products, on the other hand, was slightly larger than in April. Factory employment declined 4 per cent in May, the number of employees being reduced in almost all reporting industries. The largest reduction of working fOl'ces occurred in the textile, metal, automobile, and leather industries. The value of building contracts awarded in May was 13 per cent less than the month before and for the first time since the beginning of the year fell below the corresponding month in 1923. The Department of Agriculture forecasts as of June 1st indicated smaller yields of wheat, oats, and barley as compared With the harvests of 1923. The condition of the cotton crop on May 25th was 5 per cent lower than a year ago and 7 per cent below the average condition for the past ten years. TRADE Railroad shipments showed a slight increase in May, but were 8 per cent smaller than a year ago. Car loadings of all classes of freight, with the exCeption of grain and livestock, were smaller than in May, 1923. Wholesale trade decreased slightly in May and was 6 per cent less than in May, 1923. Sales of dry goods, shoes, and hardware were much smaller than a year ago, while drug sales were slightly larger. Retail trade at department stores and mail order houses declined during May more than is usual at that season and was smaller than last year. Department store stocks were 4 per cent smaller in May than in April, and 3 per cent larger than a year earlier. PRICES Wholesale prices, as measured by the index of the Bureau of Labor Statistics, declined 1 per cent during May to a level about 8 per cent below the high point reached in the spring of 1923. Prices on all commodity groups, with the exception of food, declined in May. During the first half of June quotations on wheat, corn, rye, and milk increased, while prices of hogs, beef, cotton, and lumber declined. BANK CREDIT Decreased demand for credit for current business requirements between the middle of May and the middle of June was reflected in a smaller volume of borrowing for commercial purposes at member banks in leading cities. Further purchas~s of corporate securities by these banks and larger loans on stocks and bonds, however, resulted in an increase for the month in their total loans and investments. There was an unusually large increase in net demand deposits of these banks, which carried the total of these deposits to the highest figure on record. At the Federal Rese.rve Banks between May 21st and June 18th there was a further decline in discounts for member banks and in acceptances purchased in the open market. Government security holdings, on the other hand, increased and total earning assets were. somewhat larger than a month ago. The prevailing ease in the money market was ,reflected in a further decline from 414 to 31/2-3%. per cent in rates on prime commercial paper in New York. The June 15th issue of six months' Treasury certificates bore a rate of 2% per cent compared with 4 per cent on a similar offering last December. Discount rates at the' Federal Reserve Banks of Cleveland, Richmond, Atlanta, Chicago, St. Louis, and San Francisco were reduced from 41/2 to 4 per cent during June, and the rates in Boston, New York, and Philadelphia were reduced to 31/2 per cent. 16 MONTHLY REVIEW AND BUSINESS AND INDUSTRIAL CONDITIONS I • Weekly figures for member banks in 101 leading cities. Latest figure-June 11th. Index of U. S. Bureau of Labor Statistics. (1913=100, base adopted by bureau.) Latest figure-May, 147 Index for 33 manufacturing industries (1919=100). Latest figure-May, 93. Index of 22 basic commodities corrected for seasonal variation (1919=100). Latest figure-May, 103.
@FedFRASER