The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
c.
C. WALSH,
CHAS. C. HALL-W. J. EVANS,
Chairman and Federal Re.erve Agent
A•• I.tant Federal Reserve Agent.
(Compiled August 15, 1927)
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Volume 12, No.7
Dallas, Texas, September 1, 1927
This copy released for publi.
cation in afternoon papers
Aug. 30
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Federnl Reserve District
July
June
Inc. or Dec.
Bank debits to individunl accounts (nt 16 citie8 ) ......................................................................................... $672,901,000
$675,129,000
Dec.
.8 %
Department .to,·e 8ale. ............................................................. .. ..............................................................................
Dec.
27.4 %
Res erve Bank loans to member ba nks lit end of month ............................... ...................................... .. _...... .. $ 10,448,587
$ 6,220.655
Inc.
68.0%
Re. erve Bank ratio at end of month.... .................. ................................................................ .. ..........................
58.8 %
68.3 % Dec.
4.5 points
Building permit valuations at lal'J~er centers .... .....................................................................·.. ........................... $ 6,774,882
$ 8.252,819
Dec.
17.9%
Commercial failures (number) ....................................... ............................ .............................................._ ............
27
59
Dec.
54.2%
Commercial failures (liabilities) ........................................................................................................ _.................. $
273,924
$ 1.565,260
Dec.
82.4 % •
• Oil production (barrels)............................................................................................................................................
20,606,806
20.158,851
Inc.
1.7% ::
:: Lum ber orders at pine mills (per cent of normal production)...................................................................
72 %
67 % Inc.
6 points E
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The marked rise in the price of cotton during the past
thirty days was the overshadowing development in business
and industry in this district. The increased value of the
district's principal commodity together with the prospects
for the largest feed crop produced in several years indicates that the returns from this year's crops will be larger
than in either of the two preceding years and will provide
the district's farmers with a large debt-paying and purchasing power. The corn, grain sorghum, and hay crops promise
a substantially larger yield than in 1926, and the indicated
production of several of the minor crops is likewise above
~hat of a year ago. The condition of the cotton crop is
llTegular with some fields indicating the best yields in
several years but with others promising only a very small
production. As a general rule the old cotton has fruited
~vell but the young cotton has been seriously injured by the
Insects. A very large portion of the district's cotton terri·
tory is heavily infested with weevils and other insects and
their activity is rapidly increasing. Root rot has already
~aken a heavy toll in some sections and appears to be spreadlng. These factors together with the lateness of the crop in
certain sections render the outcome of the crop very uncertain.
.The rains which fell over the major portion of the dis·
tflct's range territory during the past month brought about
a further improvement in the physical condition of ranges
and livestock. There is now ample pasturage on most of
the ranges and many classes of cattle are fat and moving to
iarket. Market prices are being sustained at near the high
evel reached in July.
Despite the fact that the period is at hand when loans
usually reach a peak, the demand for credit continues light,
deposits have been well sustained and there has been an
easing in money rates. Deposits of member banks declined
only $5,561,000 between June 22nd and July' 27th, and on
the latter date were $26,633,000 greater than on July 28,
1926. While Federal Reserve Bank loans to member banks
on August 15th were $4,528,148 larger than a month earlier
they were $7,703,795 less than on the corresponding date
last year. Effective August 12th, the Federal Reserve Bank
of Dallas reduced its discount rate from 4 per cent to 3%
per cent.
The business mortality rate in this district reflected a
marked improvement during July, the number of failures
being the smallest in mote than seven years. There was
only one month during this period in which the indebtedness of defaulting firms was smaller.
The July distribution of merchandise in wholesale channels reflected a seasonal expansion as compared to the previ·
ous month but continued on a smaller scale than a year ago.
Late reports indicate that business during the first half of
August has shown a considerable improvement and that
merchants are optimistic regarding fall trade. Midsummer
quietude was evident in department store trade, there being
a substantial decline in sales as compared to both the previous mQnth and the same month last year.
Construction activity as gauged by the valuation of per·
mits issued at fourteen principal cities reflected a further
marked decline as compared to both the previous month
and the same month last year and reached the lowest level
since last November. While the production of lumber and
cement was less than in June, shipments were slightly larger.
CROP CONDITIONS
. Timely rains during the past month have benefited growIng crops over a large area of the district and resulted in a
considerable improvement in crop conditions in some sec-
tions. Prospects now point toward a fair to good yield for
most crops and with a higher level of agricultural pricei. obtaining, indications are that the net returns to the farmers
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
this year will be greater than during either of the past two
years.
While the corn crop in South Texas and in scattered
localities elsewhere deteriorated somewhat from the lack of
rainfall, improvement in this crop occurred over a large
area of the district with the result that prospects on August
1, pointed toward a larger yield than was indicated a month
earlier. The crop in most sections is now practically matured. The average condition of the Texas crop on August
1, was reported as 84 per cent of normal and indicated a
yield of 114.,931,000 bushels which is the largest production in any year since 1922.
The condition of tame hay in Texas did not show the
usual seasonal decline and on August 1, the indicated yield
was 1,491,000 tons as against a production of 1,24.0,000 tons
in 1926. Although much of the grain sorghum was planted
late, the crop generally is making good progress and
promises a satisfactory yield. The indicated production of
the Texas crop on August 1, was 67,376,000 bushels as
against a production of 48,276,000 bushels last year.
The development of the cotton crop has varied considerably in several sections of the district. In South Texas the
dry weather forced early maturity and picking is in full
swing. Weevils became active earlier than usual and have
increased rapidly in some localities. Yields generally are
falling short of earlier expectations. In North West Texas
the crop, although late, is making good progress. As a
rule, stands are fair and the fields are well cultivated. The
rains which have fallen during the month have greatly benefited the crop and some counties promise better yields than
in several years. However, due to the lateness of the crop,
an early freeze wou ld materially reduce the yield. In other
sections of the district, conditions are irregular. As a general rule the early planted cotton has fruited well but the
late cotton has suffered considerably from the depredations
of the weevils and other insects. In Central Texas and parts
of North Texas the root rot has taken a heavy toll and is
increasing. There have been numerous complaints regard·
ing shedding which resulted from the high temperatures as
the wet weather had prevented the development of taproots
and the plant was unable to withstand the hot weather. The
August 1, report of the Department of Agriculture stated
that the weevil infestation was the greatest since 1923, and
there has been considerable activity of the boll worm and
leaf worm. Recent reports indicate that the damage resulting from insect activity was greatly increased during lhe
first half of August. While it is yet too earl y to determine
the outcome of the crop, it must be borne in mind that lhe
insect activity constitutes a real menace.
feed throughout the district. There seems to be a strong
tendency to cull out dry cows and to hold young heifers and
calves for restocking purposes.
Movements and
Receipts of all classes of livestock at the
Prices
Fort Worth market during July were considerably smaller than in the previous
month but the arrivals of calves and hogs were in larger
v01ume than a year ago.
Cattle prices, after reaching the highest level of the year
during the second week in July reacted somewhat during
the third week but regained some of the loss toward the
close of the month. Prices at the end of July on most
classes of cattle were higher than a month earlier. Slightly
lower values, however, obtained during the first half of
August. Following the low levels recorded during June,
hog prices have reflected a steady advance. Since the passing of the heavy marketing season for sheep and lambs,
prices have been firm and are gradually working to higher
levels.
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§
F OR'I1 WORTH I"IVESTOCK RECEIPTS
{till
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ll:if!
l!:lii
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COMPARATIVE TOP LIVESTOCK PRICES
Ju ly
1927
Beef s t eel's .................................. ......... ............. $11. 25
Stockel' steers .. ............._................................. 8.25
Butcher cows ...... ............. .......... ................. ...... 7.10
Stocker cows ................................. ..................... 5.60
Cnlves ............ ................................. ..................... 11.00
Hogs ................................. ..... ................................ 10.90
Sheep ................................... ...... ........................... 8.00
Lambs ..._............................................................... 12.50
July
1926
$ 9.90
6.25
9.00
14.20
7.75
13.50
June
1927
$11.00
8.20
7.00
5.50
10.75
9.30
8.00
13.00
Cotton
Movements
Receipts and exports of cotton at the
ports of Houston and Galveston during
Jul y were on a small er scale than in the
same month last year. For the season just closed however,
both receipts and exports showed a very large increase over
those of the previous season and stocks on hand at these
ports on July 31, were small er than a year ago. Foreign
exports of cotton (including linters) during the past season totaled 11,183,938 bales, reflecting an increase of 37
per cent over those of the previous season. The domestic
consumption of cotton during the past season amounted to
7,202,724. bales as against 6,455,852 bales durin g the previous season.
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Light to heavy rains fell over practically all of the district's range territory during the past thirty days with the
result that both ranges and livestock are now improving
steadily. There are only a few scattered localities which
have not been favored with moisture. The drouthy condition which existed in much of New Mexico and Western Texas has been relieved, the suppl y of stock water has
been replenished, ranges are mostly green and livestock are
gaining in flesh in response to the better pasturage. Reports now indicate that livestock generally are in fair to
excellent conditi on wilh many classes now fat. With a few
more rains in those seclions whi ch have suffered from dry
weather there will be an abundance of pastl1l'age and winter
0::;:::::::::::
co'mON MOVEMENTS THROUGH THE PORT OF GALVESTON
LIVESTOCK
July
1927
R eceipts .............................. 84.982
Exports ...................... .. ........ 184.984
Stocks July 31....................
July
1926
August 1 to July 31
This Senson Lnst Senson
87.891
154.887
8.8'16.641
8.848.964
146.029
3.070.634
2.967.126
149.926
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GALVESTON STOCK STATEMENT
:
~f~~~8010
.rf~~::: I
: ::::!!!
::::::~ J
For Grellt Britain............ ..................................... ....
For France .... .............................. .. ............................
IfF,:~~~~~~: ::
i~
900
600
:
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MONTHLY BUSINESS REVIEW
m
....
8
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COTTON CONSUMED AND ON HAND
~:! ~'"" m~ _
_ _ _ .!!.~:!;:~~~~~:.~: .!.~!o~,":~t:~ I:~
""..
Cotton on ha nd July 31 :
( •• ) In cons uming establishments................................
(b) In public storage und compress es......................
:
g
881.885
1.498.572
624.845
1.708.461
1.404.858
1.822.671
1.096.647
1.986.918
:
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COTTON MOVE MENTS THROUGH THE PORT OF HOUSTON
~
~
July
1927
~~~o:;,:c~!.~ ~ .... :::~::::::::::::::: ~~:m
July
1926
~~:m
~:m:~~r
Stocks July 31....................
8" ..........
~
August 1 to July 31
This Senson L ast Seas on
179.825
~
~:m:~~~ ~
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22 6.686
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SEA SON'S RECEIPTS, EXPORTS. AND STOCKS AT ALL
UNITED STA'JlES PORTS
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:
SPOT COTTON PRICES
(Mid"'", S
q,:,;,.". >G'',..
1_
New YO"k ......................................................
18.96
~
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Galveston
......................................................
~
18.86
I
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19.06
~
While the movement of cottonseed products from report·
ing cottonseed oil mills in this district was small in July. the
average prices received for these products .reached the hIgh.
est level of any month this year. Crude 011 sold at an average price of $ .0813 per pound as compared to $ :0777 per
pound in June and hulls at $5.63 per ton as agamst $5.00
per ton in the 'previous month. The average pri?e received
for linters increased from $ .0245 per pound m June to
$ .0268 per pound in July. With the exception of April
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~
STATISTICS ON COTTONSEED AND COTTONSEED
co::a:fl~: (~~~)~~.
Cottanseed crushed
(tons ) ..................
C'(ttonseed on hand
T>~"d;~~'~~. Tb~i:rtr.;ri;~
1.941.811
1.898.807
6.874.694
1.918.958
1.408.047
11.858
6.801.911
88.896 .
5.558.860
5.658.248
28.249
§
::1:
:
~
~: _ Cake and .................... 587.048.264 894.454.000 1.886.886.168 1.611.689.000 : ~:_
Cru~~sJiI" meal pro- 88.016
ii~;;;j~~eii""
(lbs.)
:
~_
:
::
duced (tons ) ......
888.219
Hulls produced
670.698
L .(tons ) .. ..................
In tera produced
(600-lb. bales )......
814.808
Stocks on ha nd
July 81 :
oil (Ibs.) .... 2.662.217
~
g"Udo
:
L inter s \ 500-lb.
bales ) ....................
i R1~!~n:~:~~·~~:~ : : : : :
~g:m
It....
10.191
667.000
2.888.104
2.688.000
896.000
1.862.408
1.541.000:
267.000
1.087.084
1.048.000
647 .000
4.847.1 77
1.903.000
§
10.000
49.127
68.000
J,
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§
TEXTILE MILLING
:
COTTONSEED PRODUCTS
1
:1
_
J'Illy.
Producrta
Shipped
2.761.050Ibs.
6.188 tons
2.802 tons
2.035.712 Ibs.
§
~~:~~ g
16.90
:
§
1927
, ~
Average p r ice
::
F. O. B. Mill
g Orude 011 ...................................•......•...
$ .0813 per lb. §
Oake and meal... ............................... _
32.89 per ton
g Hulls ......................... .............................
6.68 per ton E
: Linters .................................. _............_
.0268 per lb. :
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19.40
18.6'1
i~:~~
COTTONSEE D PRODUCTS SIDP PED AND AVERAGE PRICE
RECEIVED
::
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A"'~\W
17.06
16.67
§ New Or lenns .......... ............... .. ...................... 18.61
g
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g
Aug ust 1 to July 31
This Season
Last Season
Receipts ............................................................ 12.902.055
10.087 .608
Exports: Great Brit ain ... _........................... 2. 682.638
2.285 .680
France .............................................. 1.021.662
91 6.4 12
Continen t ........................................ 5.488.776
8.511.512
Japan·China ............................. ..... 1.869.128
1.246.2 61
Mexico ............................................
18.147
48.197
Total foreign ports ..._................. l0.970.261
8.007.967
Stocks a t all U. S. ports July 81............ 923.4 20
688.961
rn ...
[!J
during which month a small decline occurred, the average
price received for cake and meal has shown a steady monthly increase since January and amounted to $32.39 per ton in
July as against $32.14. per ton in the previous month. In
comparison with July, 1926, the average prices received
fo r pr oducts shipped in that month are as follows: Crude
oil $ .1268 per pound; cake and meal $28.42 per ton; hulls
$8.1 1 per ton ; and linters $ .0370 per pound.
There were 2,943 bales of raw cotton consumed at textil e mills in this district in July, as compared to 3,242 bales
in June and 2,64.0 bales in July, 1926. Spindle activity was
th e same as in the previous month but greater than in the
same month last year and production of cloth at these mills,
although less than in June, showed an increase over July a
year ago. Orders on hand at the close of! the month were
sli ghtly larger than a month earlier and substantially above
those recorded a year ago. Stocks on hand on July 31st
were less than on both June 30th this year and July 31,1926.
1:_; ...... · ........·· .......... · ..
g
.·.. .
;:~~;; =;~;;~~. ;;i~~:;~;~~;~ ~~~: ·'''::_1
..
Numbe.· bales consumed..........................
Number of spindles actlve.......... _............ 75.020
Number pounds cloth produced .............. 1.288.729
2.640
71.020
1.108.868
3.242
76.020
1.505.609
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§
£!]
WHOLESALE TRADE
Seasonal expansion in the demand for merchandise in
wholesale channels of distribution was evident during the
past month. Sales in all lines except groceries were larger
than in June, ranging from 1.6 per cent in the case of drugs
to 34..2 per cent in the case of farm implements. Dry goods,
however, was the only line in which sales exceeded those of
the corresponding month of a year ago. Late reports indicate that business during the first half of August has shown
considerable expansion and that merchants generally are
looking forward to good fall business. Despite this opti.
mism, however, merchants are proceeding cautiously and
in most instances, are awaiting more definite information
regarding the outcome of the cotton crop before making
commitments in excess of nearby needs.
Renewed activity in the demand for dry goods at wholesale was noticeable during July and the first half of August. The July sales were 26.0 per cent greater than in June
and 13.0 per cent larger than in July a year ago. The
opening of the fall marketing season at the principal distri-
MONTHLY BUSINESS REVIEW
4
buting centers early in August brought many merchants to
the markets and buying is reported to- be heavy. 'While
merchants are buying a considerable volume of merchan·
dise for forward delivery due to the improved outlook for
fall business and the rising market on cotton goods, they
are following a conservative buying policy and are limiting
commitments well within the prospective demand. While
collections have continued slow, considerable improvement
is expected as soon as the cotton crop begins to move in
substantial volume.
Sales of farm implements reflected a gain of 34.2 per
cent as compared to the previous month and were only 10.5
per cent less than in July last year. Despite the recent im·
provement in sales, business generally remains considerably
below normal as dealers and farmers are withholding purchases until more definite information regarding the out·
come of the cotton crop becomes available. Nevertheless,
a spirit of optimism prevails in most sections and business
is expected to show considerable improvement during the
fall months. Prices remain generally steady.
The demand for hardware showed a gain of 9.5 per cent
as compared to the preceding month but was 8.4 per cent
less than in the same month last year. The improvement
appeared to be fairly general over the district. Collections
remained generally slow.
Sales of reporting wholesale drug firms during July reo
flected a gain of 1.6 per cent as compared to the previous
month but were 4.8 per cent less than in the same month
last year. Dealers report that business generally has been
slow but the trade is becoming optimistic and that the
outlook for fall trade is encouraging. Collections were less
than in either the previous month 01' the same month last
year. Prices showed no material changes.
The J ul y sales of groceries were 5.9 per cent less than in
June and 7.6 per cent less than in the corresponding month
last year. The buying demand was reported to be fair for
this season, and the outlook generally is for fair to good
business during the fall months. Collections showed a
marked decline as compared to the previous month. Prices
continue steady.
8.1I .......... IIIIIIIIIIIII ......... " .. IIII .. IIII .. ' ......... IIIII .......... llllIlIlIlIlI1I11111111111111111111111111.l!l
~
CONDITION OF WHOLESALE TRADE DURI~G JULY, 1927
Percentage of Increase 01' Decrease m:
~:.:
E
: :."
:
••
:.:
E
•
:
- Net Sa lesJuly,1927
compared with
July,
June ,
1926
1927
Groceries ..................................- 7.6
- 6.9
Dry Goods ................................ +13.0
+26.0
Farm Implements ..................- 10.5
+ 34.2
Hardware ................................- 8.4
+ 9.6
Drugs ........................................- 4.8
+ 1.6
- StocksJuly,1927
E
compared with
::
July,
June,
1926
1927
:
- 10.8
+16.P :::
- 1.1
+16.9
- a.8
- 5.3 E
+.9
+ 4.3 •
- 8.9
- .9:
1!l.1I1111 ..... IIU .. IIIIIIIIIIIIIIIU ...... 'IIIIIIIIIIIIU .. UItIIIIIl ..... IIIIIIU •• 1I1I1.U.UIIUUUIIIIIIIIIIIII1II ,1!1
RETAIL TRADE
Summer quietude in department store trade was evident
during July. Sales reflected a seasonal decline of 27.4 per
cent as compared to the previous month and were 7.7 per
cent less than in the corresponding month last year. Sales
during the first seven months of the year have averaged 1.0
per cent less than during the corresponding period last year.
Stocks on hand at the close of July were 5.3 per cent less
than a month earlier and 7.0 per cent less than a year ago.
The percentage of sales to average stocks during the first
seven months of 1927, was 156.4, as compared to 14.7.8 during the same period' last year.
The ratio of outstanding orders to last year's purchases at
the end of July was 9.3 as compared to 4.0 at the end of
June and 8.5 at the close of July, 1926.
Collections showed practically no change as compared to
previous month but were slightly less than a year ago. The
ratio of J ul y collections to accounts receivable on July 1st
was 33.5 as against 33.7 in June and 35.6 in July last year.
811111111111 .................... 1111111111111111111111111111111111111111111111111111 .. 11111111111111 ... 11111.11111111111111111111.. 11111111111 .......... 1111 .... 111111I1I1I1I11I1I1I1.IIIIIIIIIIIIIIIIIIIIIIII"UII"11111111I11I111I1I1111111111111111II1
~_
~:
July, 1927, compared with July, 1926........................................................
July, 1927, compared wi t h June, 1927........................ ...............................
: January 1 to date, compnred with same period last yenr.... ..........................
- Credit Sales
~
July, 1927, compa red with July, 1926........................................................
July, 1927, compared with June, 1927..................................................... ...
§ January 1 to date, compared with same period last year............................
- Stocks'
§
July, 1927, compared with July, 1926.......................... .. ............................
:
July, 1927, compAred with J une, 1927........................................................
: P er ce ntage of sales to a ve rage stocks in:
E
J u ly, 1926 ............................................................................................................
:
July, 1927 ..._.... ..................................................................................................
: P e l'ccn tage of sales to avel'age stocks:
E
J a nuRry 1 to July 3]' 1926..............................................................................
:
J a nuary 1 to July SI, 1927..............................................................................
: Ratio of outstanding ol'ders to last year's purchases......................................
~ RntiiniOj~l~t 192~.~~~.~~~.~... ~.0....~.~.~.~.~.~~~....r~~~~~~.~.I.~:....~~~...~~.~ ...~~~~~~~.~
8" ..
~
_
nl~l~a:s~
For~w2~0:1~.th
_
H 08u1s:t~on
~
All
Ot2h~e:r~s
__
Total
7.8
+ 3.9
+ 2.8
+ 1.7
Distl'ict
- 7.?
- 27.4
- 1.0
- 17.2
- 29.4
- 9.4
+ .6
- 25.S
+ 8.7
+ 5.6
- 41.1
+ 6.9
- 1.6
- 30.9
+ 2.1
- 6.8
-81.8
- Z.O
- 15.9
- 8.7
-
9.6
6.0
+ 5.1
- 2.5
+ 1.1
- 2.7
-
15.8
14.8
17.1
17.6
21.9
21.2
18.9
17.8
17.8
17.8
186.4
146.0
10.1
133.0
148.8
7.0
180.7
190.9
9.8
157.7
156.7
8.8
147.8
166.4
9.3
29.4
80.6
86.5
40.1
88.6
-
(!)
~_
BUSINESS OF DEPARTMENT STORES
Total Sa les :
~
.:~_
-
7.0
6.8
~:
:
:
§
_
E
-
§
:
:
g
;:
:
;:
g
;:
~
.,.11.11111111111 .. 11'11111111111111111,1, .. 111111111,11111111".1111111111I1I1I ... ,III .. IIII'"IIII.I.lllIllIlIlllll tllllllllllllllllllllllll .............. IIIIIIIII .. IIIII ..... I .. IIIIIIIIII ..... III.IIII.II ... II.IIII .......... 'III.III ... IIIIIII.S
FINANCIAL
Midsummer dullness in business and industry was reflected in debits to individual accounts at banks located in
sixteen principal cities of this district in July. July charges
to depositors' accounts reflected a slight decline as compared to June and were 4.2 per cent less than in the same
month last year. The decline from a year ago was the
first shown since last Janum·y. It will be observed, however, that the decline was not altogether general as eight
cities showed increases over the previous month and six
reported gains over the same month last year.
Acceptance
After decreasing in May and June the
Market
volume of acceptances executed by ac·
cepting banks of this district and outstanding at the end of the month showed an increase at the
end of J ul y and were almost twice as great as those outstanding a year ago. As compared to $2,684~951 on June
30, and $1,926,055 on July 31, 1926, acceptances outstand·
ing at the end of July this year totaled $3,600,971 repre'
senting increases over the two previous dates of $916,020 and
MONTHLY BUSINESS REVIEW
July
1927
Abilene ..._................. $ 9.172
Austin ........................ 14.868
Beaumont .................. 28.664
Corsicana .................. 5.400
Dallas .......................... 185.981
E I Paso ...................... 82.128
Fort Worth .............. 98.604
Glliveston .................. 88.467
Houston .................... 159.242
POI·t Arthur ............
9.858
Roswell ...................... 2.786
Sht"eveport ................ 87.926
Texarkana ................ 10.040
Tucson ,.....................
8.308
Waco .......................... 15.052
Wichita Falls............ 26 .410
Total 11th District.. $672.901
July
1926
$ 8.905
16.584
20.226
6.338
196.298
28.945
92.287
41.129
168.046
9.859
2.760
41.047
10.291
8.625
14.368
36.499
$702.192
Inc. or
Dec.
+
3.0
- 10.3
+17.0
-14.8
- 5.8
+11.0
+ 1.4
- 6.5
- 5.2
None
+ 7.6
.9
-
2.4
-
8.7
4.9
-27. 6
- 4.2
+
June
1927
$ 10.848
17.848
28.888
4.891
188.284
82.087
92.814
87.689
157.667
10.478
2.970
85.952
10.185
8.846
14.987
27.855
$675.129
Condition of
Member Banks
in Selected
Cities
Inc. or
Dec.
-11.4
-14.8
1.2
+10.4
- 1.2
+
+ .8
+1.4
+ 2.2
+ 1.0
- 5.9
- 6.2
5.5
- 1.4
- 6.1
.8
- 5.2
+
+
-
5
.3
$1,674,916 respectively. Acceptances executed by these
banks against import and export transactions amounted to
$2,063,291 on July 31, an increase of $933,132 over June 30,
while those based on the domestic shipment and storage of
goods stood at $1,537,680 at the close o£ the month which
was only $17,112 less than a month earlier.
The loans and investments of member
banks in selected cities of this district reflected a decline of $2,899,000 during the
four-week period ending August 3rd. Investments in United States securities declined $900,000 but investments in other stocks and honds
increased $209,000, making a net reduction during the
period of $691,000. Loans secured hy corporate securities
were reduced $524,000 and commercial loans showed a decline of $1,686,000. The net demand deposits of these hanks
reflected a further decline of $2,050,000 hut time deposits
showed a further gain of $629,000. While their reserve
deposits with the Federal Reserve Bank on August 3rd were
$304,000 less than a month earlier, they were $2,214,000
greater than a year ago. Their hills payahle and rediscounts
with the Federal Reserve Bank amounted to $6,104.,000 on
August 3rd as compared to $2,179,000 on July 6 and $6,875,000 on August 4., 1926. As compared to a year ago,
loans and investments were $20,616,000 greater, representing an increase of $14,735,000 in investments and $5,881,000 in loans. During the year, net demand deposits have
risen $11,795,000 and time deposits $10,363,000.
(!JII.II •• 'II.IIIII.IIII ••••• IIIIIIIIIIII ••••••• IIIIIIII111111,.111111111' ••• 11.1111111111111111111111111111111111'111111111111111 11 111 11".111111111111.11111111111.111111 ' 11111111'1'111111'11'11111111""1111111111111'111111111111 •• 11 •• 11111111111 ••••
E
:::::i
.::
:
:
§
OONDITION STATISTICS OF MEMBER BANKS IN SELEC'l1ED CITIES
r:
6.
7.
~~:::~~~7ii~?t¥~~~::~.~~'=;~~~1~~~~: ~2:U;1:~0i.:·~50i2~78'·:~oi ~of :~U 6;'~9i:.~ig61~i.:· o~ jo:~! A:~g: W8:f'~6i ~86;:.0~i 0 l~or
113
1
E
All other loans ................ _............................ _....................... _..............•.......... _...... _.......................
Net demand deposits .. _........ _.... _........ __........................._ .................. _............................... _.........
:: ~::rv:e~n~tsF.;d~;~I··R;;~~~~··B~"iik::::~::::::::::::::::::::::::::::::::::=::::::=:::::::::::::::::~:::::::::::::=::~:::
10. BUis payable and rediscounts with Federal Reserve Bank.. _........ _........ _........_........ _........
11. Ratio of loans· to net demand deposlts ........ _ ........................................... _.................. _...........
·Loans Include only ltema 4 and O.
29.575.000
6.104.000
88'70
29.879.000
2.179.000
88 %
_::.:::§:i
27.861.000
6.875.000:
91 % :
E
811111111111111111111111111111111111111111.1111111111111111111111111111111111.1111111 .. 1111,111111111111111111111111.11111 11 1111111111.11111111.,1111111111.11111".1111111111111111111, ... 111111 .... 11111111.11111111 .. '"1111111.1111'11"1111 ... 1I' ..... m
Reports from 93 hanks in this district,
which operate a savings department, show
that savings deposits of these hanks
amounting to $122,979,687 on July 31st, were 0.4 per cent
less than a month earlier hut were 10.4 per cent greater than
on July 31, 1926. This was the first decline shown hy reSavings
Deposits
porting hanks as compared to the same day of the previous month since Novemher 30, 1926. There were 267,701
accounts carried at these hanks at the close of July as compared to 266,910 on June 30, and 241,901 on July 31st a
year ago.
m'.IIIII.IIIII'IIIIII I I.IIIIIIIIIIII ••• IIIIIIIIIIIII'.111'1 111.11'1'1.11111111",,11111111 •• 11,1.1.111.111111IIIIItllllll'llllll tt lllll.III . IIII I IIIIIIIIIIIIIIIII.11111111'111.111.111.,1111'1'11,.,11,111""1'1.,1,1.,1IIIIIIIIItllllll l ll"'!' I " IIIIII I[!)
g
July 81. 1927
Number of Number of
Amoun t of
Reporting Savings
Savings
Danks
Depositors
Depos its
E
E:::
=
§
:
Houston ............... _....................
San Antonio .............................
Ie
a
3~·.m
5:111:671
6.592.490
9.882.286
29.069.984
13.060.411
16.121
19.'168
J2.735
55.668
26. 078
8'.948
85.882
2' 091' 758
18'962'802
5.264
86.6'10
~
a s ................... _.......
!:~i;:;~:~ ,~.;.~:~~
2~·1~~·~~~
16.183
20.650
18.848
62.485
28.441
2
46.
Fort Worth ...............................
61'.m
8
3
8
18·
6
~il~:s~···:::::::::::::::::::::::::::=::::::::
~ WWs~rc.ehit F ....:::::::::::::::::::::::::::::::.
. ;e~.~.~ II
:
::
July 31. 1926
Number of Amount of
Snvings
Savings
D eposi~()1's
Deposit;
r
Beaumont ...................................
§ Galveston ...................................
~
:
E
SA VINGS DEPOSITS
~
n
2~'m
$
~'m'm
2~:m
$
Inc. or
Dec.
1~·.~~~·.1~~
t2~:~
5.987.158
6.172.774
i~'~9~'17~
. .
- 18.9
+ 6.8
+ 15.0
~.g
"
2.470.088
16.502.466
+ 14.9
8 .5~5.~~1
~:~~U~g
t
t1~:~
- 15.8
June 80. 1927
Numher of Amount of
Savings ' Savln&'8
Depos itors
Deposits
61:m
14.899
20 .768
J8.280
g~'r~
. 9_
2~:m
8.988
85.787
$
~
Inc. or E
Dec.
§: ~
2~:m:m
2:1:~:
5.139.884
6.668.582
9.699.999
29.228.519
13.053.747
-
~:m:m
2.656.285
18.922.910
b::k. I. ~:::%•. ••~,:;·::~:'I... :,";:;,. . ,:;:;~:';~~ ."mb.. -;:::.,." '::;:::<0,'.''''''''''''
.5
§
-1.1:
+1.9:
- .6 ~
+.1:
3
2: ::
E
+21.3 :
+.~
:
-.!
Gl IIIIIII.IIIII.I.I.I.I •••• I •• I ••••••••••• ' •• IIIII.III.'1'1111""11 •••• 11,,.111.11111.11 •• ,1,111111,1 •• 111.'."IIIII,IIIII. UI.,III',II,III.IIIIII ••• , IIII •• IIIIIII1111111111111111"11,,1111,111111111111'1111 1.,111111'111 ••••• II IIIIIII.III'IIIIII.II •• '11li
Comhined deposits of memher hanks in
this district which amounted to $781,
680,000 on July 27th 'Were $5,561,000
less than on June 22nd hut were $26,633,000 greater than
a year ago. The net demand deposits of these banks declined $3,384,,000 during the five· week period ending Jul y
Deposits of
Member Banlcs
27th and time deposits dropped $2,177,000. Banks located
in cities of less than 15,000 population reported the heavier
decline in net demand deposits, whereas, the greater portion
of the reduction in time deposits occurred in cities of over
15,000 population.
MONTHLY BUSINESS REVIEW
6
8 .•••••••• 1••••••••••••••• , •••••••• 1., .............. 1."",' ••••• 1.1.,1".1 •• 111"1.11"111'1'1111.111111111'1.1.1.1'111111 •••• 1" ••••••••••••• ,11.1.1 ••••••• 11111.111 •• 1"1"'11111.1.1.1,111 •• ,.111.1.1 ••• 11 ••••••• ,.1, ••••
Dallas
Rate charged cuatomers on prime commercial paper 8uch
as is now elhl'lble tor rediscount under the Federal
Reserve Act ......_............... _... _........_ ........_ ........_ ....... --....Rate charged on loans tcJ other banks, secured by billa
receivable ....................... _...........•..•...._....... _....- ... - ........ - ..........
Rate on loans secured by prime stock exchange or other
current collateral (not including loans placed in other
markets through correspondent banks) :
EI Paso
Fort Worth
Houston
,II.III.,IIII.,.IIIII •• II.I." Il!J
San Antonio
Waco
4~-5
8
5
6
6·6
5
\t\ ~:::n~. .::::~::::::::::::. _::::::::::::::::::::::::~~::::::::::::::::::::::::::::
6·1
5·6
8
8
6·8
6·8
5·6
5·6
G· P
6·8
6·8
6·8
etc. ................ _........ _............. _... _................................................-
6·0
6·1
7·8
6.8
5.&
6.8
5·7
6.8
7·8
6·8
8 :
Rate cJn commodity paper secured by warehouse receipts,
§ Rate on cattle loans ......._....... _........ _...... _ ............__............-..
8 ...
5·8
5·6
4%·0
6·8
6·6
4·~
11 .... 111111 .... 111 .... 11111111 ....... 1....... 11111111 .. 1111 .. 11111 .. 11 ....... ' .. 1111111 ...... 111 .................. 111111 ............................ 1111".11111." .... 11".11 .. 1111 ............... IIIIII" .. " " I I I IIIIIII'"IIIIIIIIIII.III ' IIIII. \ . ...
DEPOSITS OF MEMBER BANKS
Total
Demand
July 28, 1926 .. _. _ _
Aug. 25, 1926 ...... _ ...
Sept. 22, 1926 ..............•.
Oct. 27, 1926 ...._..........
ov. 24, 1926 ......... _..
Dec. 29, 1926 ......._.......
an. 26, 1927................
eb. 23. 1927 ................
March 28, 1927 ........ ...•
April 27, 1927 .............
Ma y 25. 1927 ........... _•..
une 22. 1927. .............
uly 27. 1927 ................
§i
--589,748
584,468
612.884
626.554
635,704
632, 391
,,33,208
650,879
645 .449
682.818
618.186
606.696
603,312
Banks in cities Banks in cities
Total with a popula. with a popula.
tion of over
tion of lesa
Time
15,000
than 15,000
Demand Time )emnnd Time
165,299
165,277
165,732
164.97 2
165.713
161,508
166.919
176,503
176,130
175.886
178.895
180.545
178.368
262,499 45.628
257,886 45,407
~7 5, 7 80
45.640
281.080 42.998
287.413 44,194
,81.721 41,290
282.875 43.791
290,385 44,869
278.998 46.021
272,254 46,624
265.858 47.618
268,813 48.119
261.809 47.666
- 249 119,671
327,
326.577 119,870
33 7,054 120,092
~45. 474 121,974
3·16.291 121,519
~fi O.670 120,213
850,838 128,128
360,494 131,634
866.451 130.109
360.564 129.212
847.278 131.277
842,883 182.426
341.603 130.70 Z§
[!lllll II .. It ""1 II "","11".,111.11111 .. 1 .. 11"1"1"""'11' 11"""1111111111" 11111"1.11'.1.111'111111111111111 .. 1 0
Operations 0/
the Federal Reserve Banlc
Loans to member banks increased con·
siderably during July, amounting to $10,.
448,587 at the close of the month, as
against $6,220,655 a month earlier. A
further increase in loans was noted during the early days
of August, reaching a peak for the year at $12,109,691 on
the 6th of the month, but subsequently declined and stood
at $11,480,168 on August 15th. On the latter date they were
$7,703,795 less than on the corresponding date a year ago.
While borrowings of country banks increased steadily be·
tween June 30th and August 15th, the greater portion oft the
increase during the last fOllr weeks of the period came from
banks located in reserve cities. On August 15th loans were
almost equall y distributed between the two classes of banks,
whereas, last year on this date, borrowings of reserve city
banks constituted only 39 per cent of total loans. There
were 210 banks borrowing from the Federal Reserve Bank
on July 31, as compared to 174. on June 30th and 343 on
July 31, 1926.
J
Due entirely to the increase in loans to member banks,
total bills held increased from $16,277,818.58 on June 30th
to $18,975,24,9.37 on July 31, distributed as follows:
Member bank colla tern I notes secured by U. S. Governmen t
obligations ............................. _.........................................................$ 4.861.400.00
Rediscounts and all other loans to member banks........................ 6.097.186.73
Open mn"ket llurchases (Banke,'s ' Accepta nces }............................ 8.526.662.64
Total bills held ................................................................... _........... $18.975 .249.87
The volume of Federal reserve notes in actual circulation
showed a seasonal increase during July. The amount of
these notes in actual circulation totaled $36,520,155 at the
close of the month, as against $34,505,115 on June 30th and
$37,939,115 on July 31, 1926. The daily average reserve
deposits of member banks which aJl1flunted to $58,795,984
in July, represented an increase of $299,527 as compared to
June and was $2,610,559 greater than the daily average
during July, 1926.
FAILURES
Statistics compiled by R. G. Dunn & Company ref/lect a
marked improvement in the business mortality rate in this
district during the past month. There were fewer failures
in July than in any month since May, 1920, and there was
only one month (July, 1924) in which the volume of in·
debtedness of defaulting firms was smaller. While failures
were rather large during the closing months of 1926 and
Lhe early months of 1927, it appears that a large percentage
of the weaker firms have been weeded out and that due in
a large measure to the inauguration of sounder business
policies, the business structure generally in this district is
in a sound condition. There were 27 defaults in July with
an indebtedness of $273,924, as compared to 59 failures
during June with liabilities of $1,555,260 and 72 insolv·
encies in July, 1926, which owed $969,986.
PETROLEUM
Total production of crude oil in the Eleventh District was
greater in July than in June but due to the longer month
the daily average output showed a decline of 10,435 barrels.
Production during the month amounted to 20,506,806 bar·
rels of oil as compared to 20,158,351 barrels in the previ.
ous month and 14,192,770 barrels in July last year. Com·
pletions in July numbered 586 of which 319 were producers
of oil and 33 were gas wells, as compared to 536 comple.
tions in June including 294 producers of oil and 25 gas
wells. Initial production amounted to 132,723 barrels of
oil representing an increase of 46,664. barrels over the
previous month.
The daily average production of crude oil in Texas de·
clined from 623,814. barrels in June to 607,650 barrels in
July, all fields except Central West Texas reporting de·
clines in production. A substantial increase in total out·
put was noted in Crane and Upton counties in Central West
Texas, and the Spindle Top field, Gulf Coast area, while
initial production in each of the fields doubled that in June.
Drilling activities in the Panhandle region of North Texas
subsided further and new production during July dropped
to a lower level. There were 1,669,660 barrels of oil produced in North Louisiana as compared to' 1,443,930 barrels
in the previous month representing an increase of 5,729
barrels in daily average output. Although the number of
new producers were only six greater than in June initial
production increased considerably, amounting to 17,162
barrels as against 1,441 barrels in the previous month.
MONTHLY BUSINESS REVIEW
7
[!)'U .. UIl.IIIIIIIIIIIIIIIIIIIIIII ..... UU .............. IIIIII ...................... IIIII ............ 1111 ..... 111111111111111 ........... 11 .................... 11 ................................. UIlIIl .. II ....... II ................................. I I . e
~
OIL PRODUCTION
=
July
Daily Avg.
216.868
198.020
84.270
181.487
82.060
:
~
June
Total
Daily Avg.
6.815.990
227.200
5.427.841
180.927
1.161.210
88.374
4.800.520
148.851
1.018.860
88.962
Inc. or Dec.
E
Total
Daily Avg.
:
98.250
Dec.
10.887
555.779
Inc.
12.098
88.840
Dec.
4.104
226.964
Dec.
11,914
26.000
Dec.
1.902
North Texas ........................ _........ _............................ _
Central-West Texas ...._..._ .............................._ ... _.
East-Central Texa.....................................................
Texas COastal.............................................................
Southwest Tcxas .................... ............................ _......
Total
6.722.740
5.988.620
1.062.870
4.074.556
993.860
Total. TeX88 .......... ............................................
North Loui.lana ................... .....................................
18.887.146
1.669.660
607.660
68.860
18.714.421
1.448.980
628.814
. 48.181
Inc.
Inc.
122.725
226.780
Dec.
Inc.
16.164
6.729
Total. District .............................................. __ ...
20.606.806
661.510
20.168.861
671.945
Inc.
848.466
Dec.
10.486
(!J'.,IIIIIIIIIIIIIIIII •••• II.I.,IIIIIII.I.II.IIIII ••••• ".,.,111111111 •• ,11111111111111111.,1111.,11111"1,.11111111111 •.
North Texas ................
Centml-West Texas....
East·Central Texas....
211
224
2
189
1
8
0
77
1
North Louisiana ........
41
24
9
8
July totals. Di.trict.. 686
June totals. District.. 586
:
:
1!]
J~~~;RIL:~ 'E;;m ~; P~:;:;::I:
1 ...,<:
819
294
33
25
284
217
70.684:
46 :
~~w~:~~ ,!! ,:! ,! ,:! !16 ~2! :_I~
=:::i
::
I '117:'"
132.723
86.069
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..:
1
m"...",,,,,""" ..""" .............. ,~;~,~~"~;,~";;~~;~.. "...........""...... ,".. "...... ,,"8_
TexasTexas Coastal
E
=
August 10 Augu.t 11
1927
1926
(Grade .. A .. ) ........................................$1.20
$1.60
ber showing small increases over the previous month, while
production was sustained at near the level of that in June.
July shipments of lumber were 27 per cent below normal
production which was 3 points greater than shipments in
June and orders increased from 67 per cent of normal production in June to 72 per cent in July. Production during
the month amounted to 79 per cent of normal as compared
to 80 per cent in the previous month. Stocks on hand July
31, increased 4 points over those a month earlier and stood
at 91 per cent of normal at the close of the month. Unfilled orders on the books of 45 reporting mills on July 31,
amounted to 4,2,833,448 feet of lumber as compared with
41
5,84.5,586 feet recorded at 51 mills on June 30.
m""...... IIIII1IIIIII~~~;I;~~I;I~~~~I~;~;~~;;'~~"11111111""""""11~
Nortr52ang~.. c:~~r~J::)~ ..~~~...~~.~.~~...~~~.i.~.i.~~~........
Number of reporting mills.......................................
45
Production .................................................................... 81.428.880 feet
1.60
.•
.Prices for August 10. 1926. not available on a comparable baSIS.
81111111111 ... 111 ............ 11111111111 ...... 1111 .... 11 ... 111111111 ...... 1111 ............. 11 .. 1111 .. ,11111 ...... 1111 ..
Dec.
Inc.
Dec.
Dec.
Dec.
. ..
~~:re~e~~~ :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~::: +~:m:m ~::i
·8
(Oil Statistics Compiled by The Oil Weekly. Houston. Texas )
LUMBER
E
A slight improvement was noted in the operation of pine
mills in this district in July, orders and shipments of lum·
Unfilled orders July 31.. .......................................... 42.888.448 feet
Normal production ....................................... .............103.338.218 feet
Stocks July 81 ..............................................................276.966.714 feet
Normal stocks .............................................................. 308.691.412 feet
Shipments belo~ normal production .................... 27.424,206 feet-27%
Actunl productIon below nOl'l!'a!... ....................... 21.914.888 feet-21 %
Orders below normal productlon .......................... 29.177.622 fcet-28 %
Stocks below norma!... ............................................... 26.624.698 feet- 9%
[EJUU ..
...
..
..
..
..
L~I;.b:; ~~I~i~l;i~~ ~~·;·~·i·i~d lb~II·;h~ S~~ih~;~ ·pi~~ .. ·A~I~~~i~ii~~I:
;
.. m
II ..
BUILDING
to the previous month while nine reported declines. The
total value of permits issued during the current year at
these cities re£lected a decline of 23.7 per cent as compared
to the previous year while the number of permits issued was
only 1l.1 per cent less, indicating that the decline this year
has been in commercial rather than residential construction.
The valuation of building permits issued at principal
cities of this district declined in July to the lowest level
reached since November last year. The aggregate value of
permits issued during the month amounted to $6,774,882,
which was 17.9 per cent less than in June and 28.5 per cent
b~low July a year ago. Of the fourteen reporting cities it
WIll be noted that only five showed increases as compared
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I.,
~ !Umsnt~inilJo..................
B
..................
~: '. I~~: N:~'" ;;; 1;~I~IN:~:·:i~ ~::. I.:: '::.;;';;NO;;::I:~::,;" I:.::.
797.~06
88 $
68
C~~:olgh -;··i'C··....
m:m
1~~
Dallas
164.594
246
60
277
rls .......
~I Pas~···::::::::::::::::
Gor
t Worth ........ _
l{~::::~n ••••• •• •••••••
(>
Arthur...........
Sort Anto .
an
Shrev
mo .......
Vi CpOrt ...........
W!lco ..................
:
'.;,~ita Falls ...:.::
:
,,,tal
~I'III
:J~
114
320
208
31
58
2.388
678.887
76.844
908.888
2
iig·m
••
127.158
98S.~36
288.111
126.466
187.267
$6.774.882
882
1~~
72
275
41
+14f5~2
In:~~~ + S.7
$1.490.818
119.846
960.288
89.865
1. 86
.3
- 29.8
+ 91.6
9~67 $
181
53
260
55
m km - ~~.~ m
501
i'~:7'613"+ 9:4 118
519
1 0 9 ' 89'192 + 42.6
282
8' 0 + 28.1
269
72 .76
230
583.979 - 47.0
160
25
86 90 + 48.6
25
.1
762
78
117 $978760'858768 - 28'5 2480
8
2.68
.4.
-..
•• •• •••• •• ••• •• •
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267.071
447.712
428.075
1.4~~·m
1 206 '487
'202;161
1.726.781
124.646
1067 69fi
• .
219.140
111190
282660
$8262'819
• •
=
=
-
4') I
65:9
72.2
~:. ~
_ 24.7
- 42.9
20
22 . 7
+.
- 12.6
29.2
+ 13.7
_ 33.7
- 17.9
+
+
273
1.229
704,431
3.347.785
~06
1.805.866
2·m
6'm:m
2.228
8.221.963
1.598
2.144.632
3'86~30 16'8.
66677.410970
2.107
8.987 .887
26
2176277
1.3
• 'S89
210
759.
571
2.277.159
18.873 $60.214.620
802
1.225
403
2·m
2.456
1.868
8'8~7776
2.146
1.842
280
1.282
20.676
757.897
1.08S.866
1.208.601
_:1
7.0
+228.8
+ 50.1
ll'm:m =
12.104.852
2.884.678
18'962065.078428
•
9.497.804
2619948
'806'8 5
• 6
6.967.832
$78.867.980
~~:~
- 82.1
- 10.1
- 106'~
. '1
6.4
- 16.9
68
.
- 67.8
- 2S.7 :
:
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MONTHLY BUSINESS REVIEW
8
CEMENT
Production of Portland cement at Texas mills in July was
below that in June and less than in the corresponding month
a year ago but shipments from these mills showed an in·
·crease as compared to both periods. There were 458,000
barrels of cement produced in July, as compared to 469,000
barrels in June and 459,000 barrels in July, 1926, while
shipments during the month amounted to 472,000 barrels
as against 454.,000 barrels in the previous month and 464,·
(!) IIUII II IIIIU' II """1111111" It 11111 .... 11111 ......... 11111 ..... .,11 .......... "
000 barrels shipped in the corresponding month last year.
Due to the increase in shipments over production, stocks on
hand at the close of the month declined and were 4.. 2 per
cent less than a month earlier and 33.1 per cent below those
carried on July 31, 1926. As compared to the same period
last year production of cement during the seven months of
the current year reflected an increase of 6.4, per cent and
shipments 6.9 per cent.
'" ... 1111111"" •• 11'11 II II"'" ........... u.................. 11 .. 11 .............. 11111 11 .. 1111 ........ '1 .. II .. UI' 11.11 .. 11 .. "111111111111111111'11'1 t II It III1IIIII
[!]:::::.=::::::"
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMEN'l.1 (Barrels)
July
1927
•
Production at Texas Mills........................
::
StDeks at end of month at Texas mills._
458.000
472,000
31G.000
§ Shipments from Texas mills...................
July
1926
459,000
464,000
472.000
Inc. or
Dec.
-.2
1.7
-33.1
+
June
1927
469,000
454.000
880,000
Inc. or
Dec.
-
+
-
2.8
4.0
4.2
Seven Months
1927
3,102.000
3,202,000
1926
2,915,000
2,995.000
Inc. or
Dec.
6.4
G.9
+
+
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1il
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the F ederal Reserve Bonrd ns of Augus t 26. 1927)
Industrial production declined in July to a level below
that of a year ago, while the Department of Labor's index of
wholesale prices advanced for the first time since last autumn. Demand for bank credit showed a seasonal increase,
but easy conditions prevailed in the money market.
PRODUCTION
Output of manufacturers declined in July and was in practically the same volume as a year ago, and the production of
minerals which was further reduced during the month, was
at the lowest level since early in 1926, when the anthracite
strike was in progress_ Iron and steel production in July
was in the smallest volume since 1925, and continued at
practically the same level during the first three weeks of
August. Automobile output for July and the early weeks
of Auaust was considerably below that of the correspond.
ing m~nth of last year; production of ru?~er tires, nonferrous metals and food products and actIvlty of woolen
mills were smaller in July than in the preceding month_
Cotton consumption was smaller than in June, but continued
unusually large for this season of the year. Production of
leather, shoes, and lumber increased in July as compared
with June. Factory' employment and payrolls showed seasonal decreases in July and were smaller than in any month
since 1924. Employment in coal mining has been reduced
in recent months, and reports indicate some unemployment
in certain o£ the building trades owing to the decline in the
construction o£ houses. Building contract awards in July
and in the first three weeks of August continued larger than
a year ago, the increase reflecting chiefly a growth in awards
for engineering projects. The August 1 cotton report of
the Department of Agriculture indicated a production of
13,4,92,000 bales or 25 per cent less than the record yield of
last year. The indicated production of corn, though con·
siderably larger than the expectation in July, was 262,000,000 bushels lower than the harvested crop of 1926. The
August estimate of 851,000,000 bushels of wheat indicated
an increase of 18,000,000 bushels over the 1926 crop yield.
TRADE
Distribution of merchandise at wholesale and retail
showed about the usual seasonal decline in July. Com·
pared with a year ago sales of wholesale firms and depart·
ment stores were slightly smaller, owing largely to the fact
that there was one less business day in July of this year
than in July, 1926. Sales of mail order houses and chain
stores were somewhat larger than a year ago. Inventories of
department stores continued to decline in July and at the
end of the month were slightly smaller than a year ago, and
wholesale stocks also continued smaller than last year. Ship.
ments of commodities by freight decreased, contrary to the
usual seasonal trend, and were smaller in July and in the
first two weeks of August than in the same period of last
year.
PRICES
The Bureau of Labor Statistics index o£ wholesale prices
advanced slightly in July, reflecting chiefly increases in the
price of corn, livestock, cotton, and leather, while prices of
wheat, silk, metals, and building materials declined. Since
the latter part of July prices of corn, colton, and cattle
have continued upward and those of wheat, non-ferrous
metals, and rubber have also advanced while hogs, lumber,
and hides have declined.
BANK CREDIT
There was an increase in the volume of commercial loans
at member banks in leading cities between July 20 and Aug·
ust 17, as is usual at the beginning of the crop-moving season. Loans on securities, as well as commercial loans, increased, while investment holdings declined, and total loans
and investments were about $60,000,000 larger than a month
earlier. Total borrowings of member banks at the reserve
;
banks increased slightly between July 20 and August 241
there was a growth of discounts at the Federal Reserve Bank
of New York, partly offset by declines in other districts.
There was little change in the system's holdings of accept·
ances and a growth in the portfolio of United States se·
curities.
Money rates on all classes of paper in the open market
declined sharply in August, and were at a lower level than
a year ago. Discount rates at eight Federal Reserve Banks
were reduced from 4 to 3% per cent.
@FedFRASER