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[ MONTHLY BUSINESS REVI E
]
[
OF THE
]
[
FEDERAL RESERVE BANK OF DALLAS
c. c.
[
CHAS. C. HALL-W. J. EVANS
WALSH
Chairman and Federal Reserve Agent
[bE:::::::::
)r
)E
)r
]
Assistant Federal Reserve Ag e nts
(~.ompile: AUgU:: 15, 1::2»)r
)E
VOlume 17, No.7
Dallas, Texas, September 1, 1932
-==-==-=
n
)E
)f
'J!his . eop?, is r eleased for pubheatlon m aft ernoon p np ers-
)d
August 30
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Elovonth Fedoral Resorve DiBtriot
-----------------------~--------~--------July
1032
ChBngo From
Juno
---7~-----------------1----------1---------
~~~it.~ . ~~. ~~~~~i~.u.B.I . ~~~~~~~. ~~~ . ~~
..
ncao r gnt . toro sBles . ... . . .............. . .
\i~~d~lbth~k~~~~.
~ .~.o.~b~~ .~~~k~ .~t. th~ ..
vO
BUild'
Buk ratio at oud 01 tho month ..... . .
COlli 109 \'Crmit valuation 8t larger ccnters ... .
Co~~:~i~ ~a!lures (~u"!~O!) ...... . ........ .
Oil P cd
allures (hablhtles) ... . ... ...... .
~uction (barrel.) ........ . ...... .... . .
$430,462,000
-
$ 10,402,8(4
70.4%
- 11.1 points
- 27 . 1 ~
- 35.7
- 3 . 7~
47 .0%
844,672
72
$ 2,107,484
20,200,600
6.0%
28 .3%
+
+
6 .010
u \VA. noticeab.le strengthenin~ of sentiment, cI:e.ated by .the
sr krd trend m prices of agrIcultural commodItIes and hve-
doe. and by the favorable prospects for agricultural proFUdhon, Was the outstanding development in the Eleventh
eral Reserve District during the past thirty days. A large
Se ~Ine of feed production is now assured in practically all
SuCllons of the district and this together with the generous
enPg ly of vegetables canned for home consumption should
la a ~}?rmers to cultivate 1933 crops with a minimum outvv Dlle the Department of Agriculture's estimate of cotdun 1roduction in Texas is the smallest since 1922, this is
Iva: ar~ely to the reduced acreage as the per acre yield
Fu thestImated to be higher than the ten-year average.
hi ermore, the recent rise in the .pri~e of c~tton to ~e
th g st level of the current year wIll, If sustamed durmg
pre d ar~esting season, partially compensate for the lower
and ~ctIon. Livestock and their ranges are in good condition
Pta ~lnce the recent rains late summer and fall grazing is
Sll! Wcally assured. The movement of cattle to markets is
shoa er than a year ago and the demand for stockers hal'!
'Yo a slight improvement.
'1:1
t/'
hh
While the merchandise distribution in both wholesale
and retail channels reached a low level during July due in
part to seasonal influences and in part to the waiting attitude
of consumers and retailers, late reports indicate that there
was an improvement in the first half of August. Consumer
buying has been stimulated by the better feeling prevailing
generally, the attractively priced clearance sales, and the
offering of new fall merchandise. Retailers are still adhering
to the policy of purchasing in small lots and to cover immediate needs, yet in some lines there is a tendency to buy
a wider assortment of goods. As inventories generally are
at a low level any increase in consumer demand should be
immediately reflected in a larger distribution at wholesale.
Financial developments were marked by a smaller than
seasonal decline in member hank deposits and a heavy
demand for the Treasury issues of August 1. The daily
average of combined net demand and time deposits of memo
ber banks declined only $2,938,000 between June and July,
and the recession from the corresponding month a year ago
was the smallest recorded in three months. Subscriptions to
the 21/8 and 31,4 per cent United States Treasury notes
totaled $89,938,500, against which allotments of only $15,332,700 were made. Federal Reserve Bank loans to member
banks rose sharply in the last half of July, but the liquidation during the subsequent two weeks brought the total ~f
these loans down to $16,129,000 on August 15, which 'was
only $273,000 above that a month earlier, and $2,774,000
larger than on the same date in 1931. The loans and investments of member banks in leading cities reflected a seasonal
decline between July 6 and August 10.
The volume of construction activity continued at a low
level. The July valuation of building permits issued at
principal cities was 27 per cent smaller than in June and
74 per cent less than a year ago.
BUSINESS
~!~lesale
Sales of reporting wholesale firms in the
e
Eleventh District during July were malllOnth
terially smaller than in the previous
of
' t~e decreases ranging from 8.1 per cent in the case
Stocenes to 60.1 per cent in the case of farm implements.
Business proceeded on a reduced scale, a~d in the lines of
groceries, dry goods, hardware, and drugs, the reductions
from a year ago were heavier than in June. While some
encouraging developments occurred during the month, merchants showed a disposition to await further evidence of
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
--------------------------------~~~====~~~~~==~~~====~------------------------------2
MONTHLY BUSINESS REVIEW
-------------------------------------------------------------------------------------------------actual improvement in consumer demand and general pur·
chasing power before making any commitments other than
for immediate necessities. The upward trend in prices for
some agricultural commodities, particularly cotton, has generated a greater degree of confidence which has brought
about a better demand for goods in some lines of trade.
Inventories in most lines were reduced slightly during July.
Despite a larger than seasonal gain in the case of farm
implements, total collections fell off somewhat.
Contrary to the usual trend, July sales of dry goods at
wholesale reflected a decline of 17.4 per cent from the preceding month, and they were 44.1 per cent less than the
volume of the same month last year. Merchants are showing
much interest in the displays of new fall merchandise, and
it is reported that business since August 1 has improved considerably. Dry goods prices have moved upward somewhat,
in sympathy with the advance in raw cotton prices. The
volume of collections during July was 5.8 per cent less than
that of the previous month.
There was a further decline of 10.6 per cent in the demand for drugs at wholesale during July, and distribution
was on a scale 33.7 per cent lower than a year ago. In June
this decrease amounted to 22.7 per cent. The most important
development during the month was the change in sentiment,
which in all parts of the district has resulted in a brighter
outlook and to some extent in improved business conditions.
Collections were on approximately the same scale as in the
preceding month.
The sales of reporting wholesale farm implement firms
during July were 60.1 per cent less than in June. While this
decrease was not of a seasonal character, the 57.8 per cent
reduction from the corresponding month last year was a
more favorable comparison than that shown in June. Reports
indicate that prospects for fall business have improved to
some extent. July collections were 52.6 per cent larger than
those of the previous month.
A decrease of 19.0 per cent was reflected in the distribution of hardware through wholesale channels during July.
Purchases were on a conservative basis and there was little
tendency to place orders beyond well defined needs. Total
sales were 31.1 per cent less than in July, 1931. Collections
were slightly smaller than in June.
Sales of groceries by wholesale firms during July were
8.1 per cent less than in June, and 22.9 per cent below thos~
of July last year. Stocks on hand declined 5.3 per cent dr\:
ing the month, and on July 31 were 21.0 per cent smal e
than a year ago. Collections evidenced a seasonal decrease
of 4.8 per cent.
CONDITION OF WHOLESALE TRADE DURING JULY, 1982
Peroentage of increase or doorcru!c in-
----------~~~~~~~----------Ratio of ccll e.Net Sales
Stock.
July, 1932 tiona during Jul
July, 1982
compared with comparod with to aooounts ~n
July
.Tuue notes outstandIng
July
JUlie
on Junc SO
1931
1932
1931
1932
6S.7
Groceries .................... -22.9 - 8.1 -21.0 - 5 .3
19 .7
Dry good8 . .................. -44. 1 - 17.4 -38. 0 + 4. 1
3.7
Farm implemcnts ............. - 57 .8 -60. 1 - 9.5 - 1.1
25
.9
Hardware .. .. ............... -31.1 - 19. 0 - 12.9 - 1.8
32.6
Drug............ .. .......... - 33.7 - 10 .6 - 19 .0 - 3.6
a
An average recession reflectin b the cu:"
e\'ltomary midsummer dullness wa~
f
denced during July in the distributIon ~
merchandise at department stores in principal cities of ~;
Eleventh District. Total sales during the month were 2 . t
per cent less than those a month earlier, and 32.4 per
below the corresponding month of 1931. The seas~na l)
adjusted index of department store sales declined sh gh \ ~
from 60.8 in June to 59.6 in July. Reports indicate that Ye
1
recently featured reduced price sales have stimula~ed ci e
clearance of summer merchandise. Distribution dUring ~n
first seven months of 1932 was 28.6 per cent less than 1
the same period of 1931.
Retail
Trade
cy
cif,
Inventories at department stores reflected a furthe 1 dtd
cline during the month, being 7 per cent less than those The
on June 30, and 23.7 per cent below those a year ago. u.
rate of stock turnover during the seven-month period,. Jan
CYtl
le
ary through Ju1y, 1931, was 1.4,9, as against 1.67 dunnl:)
same period of 1931.
h
July collections were seasonally smaller than those :
month earlier, and continued considerably below thos~ "
year ago. The ratio of collections to accounts outsta.ndl:£
on July 1. was 28.1 per cent, which represents a ~echnfe Jl'l
1.2 points from those a month earlier, and 3.6 powts rO
July, 1931.
BUSINESS OF DEPARTMENT STORES
Total Sales (Percentage):
July, 1932, compared with July, 1931. . . . .. . .. ........... . ...... . ............ .
July, 1932, compared with June, 1932 .. . ........... ... ...... .. . , . ..... , ...... .. .
January 1 to date compared with .rune period IllSt year ...................... . ... .
Credit Sales (Percentage):
July, 1932, compared with July, 19a1. ........... .. . . ....... . ........... . ...... .
July, 1932, comparod with June~ 1932 .............. . .. ...... . ........ . .... . .... .
January 1 to date comllarod witll .amc period IllSt year . .....•..... . •. . ...•......•
Stocks (Pcrcentage):
July, 1932, comparod with July, 1931 .................... . .•.....•..... . ........
July, 1932, compared with June, 1982 ..... ... . . . .. . .... ..... . . ... ........... ... .
Stock Turnover (Rate):
Rate of .tock turnover in July, 1981. ............................. . ............ .
Rate of .teck turnover in July, 1982 .. .............. ..... .... . .. ............... .
Rate of stock turnover January 1 to July 31, 1931....... . ........... .. . . ........ .
Rate of .tock turnover January 1 to July 31, 1982 .. ................ . ............ .
Ratio of July collections to accounts receivable outstanding July I, 1932 .... ... ....•....
Indcxes of department .tore .ales:
Xdi:~~~uf;,lrol8~~ :::: : ::::::::: : :::::::::::::::: :: :::: :::::::::::::::::::
Indexes of department .tere .tocks:
Xd:~~ufy~llOJ83~: :::::::::::::::: ::::: ::::::: :::::: :::::::: ::::: ::: :::::
-
DallllS
- 29 .1
-28.5
- 26 .1
Fort Worth
-35.5
-28.0
-29.3
Hou. ton
-35.2
-28.3
-31.2
San Antonio
-36.4
-32. 7
-33.2
Othcr.
-28.2
- 23.6
-25.9
Totnl Di. triCt
-32.4
-28 .3
_ 28.6
-31.4
-31.0
-27.1
- 36 .0
-30.9
- 28 .2
- 37 .6
-32.2
-34. 4
-38.3
-38.9
-S2.2
- 31.8
-29.2
-28. 1
-34.2
_32.2
_20.3
- 17 .0
- 8.6
- 26 .0
- 8.3
-46.4
- 13 .8
- 16 .0
7.5
- 17 .5
- 5.4
_23.7
_ 7.0
.19
.16
1.68
1.49
29 .0
.16
. 13
1.32
1.17
28 .5
.20
.23
1. 78
1.78
31.6
.26
.21
2.80
1.94
30.0
.17
.15
1.54
1.36
26.2
.19
.17
1.67
J.40
28.1
38 .2
57 .0'
49 ..5
'66 .0
47 .1
67.3
38.9
57 .2
41.7
59 .6
42.4
45 . 6
62 .6
68 .0
39 .0
43.8
38.8
44.6
47.2
51.9
+
-----------------~~~~~~~~~rn-----------------~3
MONTHLY BUSINESS REVIEW
---------------~~=-~---------------------Commercial
Failures
The business mortality rate in the Eleventh District during July, which showed
a substantial reduction from the previo.us month, was likewise lower than in any other month
Since July, 1931. Liabilities of insolvent firms reflected a
furtl~er slight decline from the preceding month but ,:,ere
consIderably larger than a year ago. The report complIed
by R. G. Dun & Company showed a total of 72 commercial
failures in this district during July, as against 112 in June,
and 60 in July last year. The indebtedness of defaulting
firms amounted to $2,197,484., as compared with $2,283,041
in the previous month, and $1,050,4,06 in the same month
a year ago.
AGRICUL TURE
Crop Conditions
Growin o' crops in most sections of the
Eleventh Federal Reserve District made
some improvement d uri n g the past
;~onth. After the first week in July rains generally ,:,ere
19ht and widely scattered and high temperatures prevaIled
oVer wide areas. However, the accumulated moisture together with the scattered rains was a sustaining factor in
crop growth. Local rains became more frequent after the
first of August and fairly general rains occurred as a result
~ the .tropi~al disturbanc.e toward .the I?id~le ?f th~ month.
. Ie slIght Improvement m crops UI thIS dlstnct plesents a
COntrast to the widespread decline in crop prospects for t~e
COuntry as a whole as reported by the Department of Agnculture.
l'e The condition of the Texas cotton crop on August 1, as
Ported by the Department of Agriculture, was 69 per cent
~ ~ormal and indicated a yield of 134, pounds per acre.
h11e this figure represents a sharp decline from the 165
POUnd per acre yield last year, it is still 8 pounds ab?ve the
len-year aVeraO'e yield. It is to be noted that there IS only
?ne. other im;ortant cotton producing state in which the
indicated per acre yield is above the ten-year average. The
lest, condition obtains in West, Northwest, and West-Central
~eCllons of the State while the lowest condition is reported
r
lh South Texas. Du~ing the past two weeks rep?rts indicate
. at the crop has made fail' to good progress m most seclions, but there are complaints of shedding and premature
Opening in the dry areas. Picking and ginning have made
~oOd advance in South Texas. The estimated production on
augUst 1 was placed at 3,826,000 bales as compared with
·n actual production of 5 320 000 bales last year, the reducl10
' ,
nb
Th ei~g due both to the smaller y~e.ld and reduced acreage.
e eSLlmated production for LOUlslana was 500,000 bales
~~ jgainsL a production of 900,000 bales a year ago. Good
Ie ds are anticipated for New Mexico and Arizona but the
Production in these states is relatively small.
.Feed crops made favorable progress during July. The
production of corn for this district, as derived
I rom the August 1 report of the Department of Agriculture,
IV~ 121,54,0,000 bushels as compared with prospects for
442,9 44,000 bushels on July 1, and an actual output of 109,i ,000 bushels a year aO'o. The improvement m the crop
n TeXas and Louisiana tomore than 0 ifset th e. decl'me m
.
Okl
h ahoma and Arizona. The estimated productIon of tame
i~' \Vas increased 59,000 Lons during the month and the
la gUst 1 estimate of 987,000 tons was only 4,,000 tons below
st yea'
. 1d. ThIS
. .mcrease occurre d prlJ1Clpa
. . 11 y 111
. Texas
and
,r s Yle
Lou' ~ouisiana. The prospects for wild hay improved in
olh lSlal1a and Oklahoma and remained unchanged in the
Iv el' states. The indicated yield of grain sorghums in Texas
d:~ 'placed at 75,258,000 bushels as against an .a~tual proero tlo n of 60,000,000 bushels in 1931. The condItIOn of the
Co P Was reported as 82 per cent of normal on August 1, as
si~pared with 77 pel' cent on that date last year. A conel'abl e increase was also reported for Oklahoma, but
~ tnnated
there was a substantial decline in the New Mexico crop.
There was little change in the estimate of small grains
as reported on July 1. The estimate of the Texas wheat Grop
was reduced from 32,148,000 bushels on July 1 to 29,779,000
bushels on August 1. The winter wheat crop in New Mexico
was reduced 220,000 bushels during the same period, while
the oat crop in that State was increased 48,000 bushels. The
indicated yield of most of the minor crops increased or
showed insignificant declines. The condition of the Texas
rice crop was placed at 92 per cent of normal on August 1
as compared with 85 per cent a year ago, but due to the
reduced a,creage the indicated production was placed at
9,882,000 bushels as against an actual yield of 10,653,000
bushels a year ago. Most fruit crops turned out slightly better than was anticipated a month ago.
Limestoclc
The generally good condition of ranges
and livestock in the Eleventh Federal Reserve District continued during the past month. While there
were some areas in South and Southwest Texas which suffered from the lack of moisture and a shortage of stock
water during late July and early August, a considerable
portion of this territory was benefited by rains toward the
middle of August. Over most of the district there is ample
range grass for grazing and practically all feed producing
areas expect a surplus of feed .
The August 1 report of the Department of Agriculture
showed the condition of cattle ranges in Texas as 85 per
cent of normal which is the same as a month earlier, whereas
the average deterioration is 3 points. The condition a year
ago was 82 per cent of normal. Sheep and goat ranges declined 2 points during the month which was less than normal, and on August 1 was 3 points less than a year ago. The
condition of cattle and goats showed no change during July
and were 1 and 2 points respectively below a year ago. The
condition of sheep on August 1 was rated as 85 per cent of
normal, being 2 points less than on July 1, and 3 points
below August 1 a year ago. In New Mexico the condition
of cattle and ranges were slightly lower than a month earlier
and that of sheep remained unchanged. The condition of
ranges and livestock in Arizona showed no change during
July and on August 1 was somewhat higher than a year ago.
Movements
a,nd Prices
The receipts of sheep at the Fort Worth
market during July showed a very large
decline from the previous month, but
were still well above those of the corresponding month last
year. The arrivals of cattle were moderately smaller than
in June and considerably lower than in July, 1931. Calf
receipts were about the same as in the previous month and
were substantially larger than a year ago. Hog arrivals were
larger than in either comparative period.
The market ' on all classes of livestock has followed an
uneven course during the past month. While values have
tended toward lower levels, prices on quality stock have
--------------------------------------~--------~~~-------------------------------------------------MONTHLY BUSINESS REVIEW
4
-------------------------------------------------------------------------------------------------------been maintained at a level well in line with that obtaining
four weeks earlier.
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Cattle ... . . .. . .. .
Calves . . .. . .... .
Hogs ..... . . . . . . .
Sheep . . . . . ... .. .
July
1932
39,313
16,705
14,608
116,014
July
19S1
50,322
13,618
11,493
66,509
Change over
year
- 11,009
+ 3,087
3,115
+48,505
+
June
1932
42,246
16,790
13,524
233,067
Change over
month
2,033
85
+ 1,084
-118,053
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
Beof stecrs . . ....... . . .. . . . . ..... ... ... . . .
Stooker steers ... .. ... . . . .. . ... .. ..... . .. .
Butoher oows ... ...... . .. .. .. . ..... .... . .
Stookor oows .. .. ... . ....... .... . . .... . . . .
Calves .... . .. .. .... . . ... ... ..... . . .... . .
Hogs .. .. .... .. . .. .... . ..... ....... . . .. . .
f~:ba : :: : : ::: : ::::::::::: :: ::::::::::::
July
1932
$8 .00
5.75
4.00 .
2.75
5 .25
5.05
2.00
4.60
July
1931
$7 .00
6 .15
4.65
June
1032
$7.00
4 .65
4.00
6 .75
8 .50
4 .00
6.00
4 .50
2.50
4.75
4:85
FINANCE
Federal Reserve Bank loans to member
banks reflected a steady expansion
throughout July, rising from $11,384,,000
on June 30 to a high point of the year
at $19,403,000 on the last day of July. During the next two
weeks there was a steady decline in these loans, the total on
August 15 being $16,129,000. This latter figure was $273,·
000 larger than on July 15, $4,745,000 above that on June
30, and exceeded the August 15, 1931, figure by $2,774,000.
Last year there was a steady increase in loans from the end
of June to the early days of September. During the six·week
period ending August 15 this year the borrowings of country
banks reflected a steady expansion, but those of reserve city
banks, after rising sharply during July, declined during the
subsequent two weeks. At the middle of August there were
272 banks borrowing from the Federal Reserve Bank as
compared with 252 banks on July 15 this year and August
15 last year. This bank's holdings of bills purchased amount·
ed to $907,000 at the middle of August as compared with
$1,382,000 a month earlier, and $3,735,000 a year ago.
There was no change during the month in the holdings of
United States securities. The reserve deposits of member
banks declined from $45,289,000 on July 15 to $43,559,000
on August 15, and on the latter date were $8,632,000 small·
er than a year ago. Federal reserve notes in actual circula·
tion amounted to $37,610,000 on August 15 which was
$122,000 larger than a month ago, and $10,556,000 greater
than on the corresponding date last year.
Operations of
the Federal Reserve Bank
Total cash reserves . .... . . ..... . . ..... ... .
Disoounts for member banks ... .. .. . . .. .. . .
Other bills disoounted ... . .. . . ...... ... . .. .
Bills bought in tho open market . . ....... . • .
United States seourities owned .... ... .. . .. .
Oth~r investmonts . .. . ...... .. . .. .. . .. ... .
Total earning assets . . .. .. . .. . ... . .... . .. .
Member bank reserve deposits . . . . .. ... . . . .
Federal reserve notes in actual oiroulation .. .
Aug.15,
1031
$ 45,860
13,355
6
3,735
30,141
47
47,284
52,191
27,054
July 15,
1932
$ 44,420
15,856
None
1,382
30,721
6
47,004
46,289
37,488
There was a decline in the investments,
loans, deposits, and reserves of member
banks in selected cities during the fiveweek period ending August 10. This recession was due in large part to seasonal
factors brought about by summer slackness in trade and
industry, but on the whole the falling-off was less marked
than at this time last year. The investments of these banks
in United States securities were reduced $3,245,000 during
the five-week period, but on August 10 were still $16,566,000 greater than a year ago. Investments in other stocks and
Condition of
Member Banks
in Selected
Cities
-
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In thousands of dollars)
United States seourities owned . .. . . ..... . . .
All other stooks, bends, and securities owned.
Loans on securities ..... ........ . . ...... . .
All other loans . .... ............ .... . . .. . .
Total loans . . . . . . .... . .. . ...... .. . . ..... .
Net demand doposits .. . ... ........ .. .... .
Time deposits .... . . .. . . .. . . . .... ...... . . .
Resorve with Federal Resorvo Bank ... . ... .
Bills payablo and rediscounts witb Fedoral
Reserve Bank .. . ... .. ..... ............ .
Aug. 10,
1932
$ 86,960
60,542
73,010
163,119
236,729
221,789
120,224
27,078
Aug. 12,
1031
$ 69,384
50,203
80,200
202,307
291,687
200,119
140,816
31,539
July 0,
1932
$ 89,105
56,503
73,900
165,011
239,00l
230,87
3,021
1,110
1,825
1 26,3~~
31,3
U
Debits to
Total debits to individual accounts d : h
Individual
ing July at leading cities in the Eleve~n(1
Account's
District amounted to $430,4,62,000, bel e~
6.0 per cent less than in the previous month and
Pe
cent below the level of the same m~nth last year .. In u~h;
the volume was $457,704,,000, and 111 July a yeal ago
total amounted to $605,625,000.
28'j
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
Aug. 15,
1932
$ 43,199
16,129
None
907
30,721
6
47,762
43,669
37,610
bonds showed very little variation during the period. LO!ln~
on securities declined $380,000 between July 6 and Au gusd
10, and "all other" loans (largely commercial) droppe I
$2,792,000. As compared with August 12 a year ago, tot~
loans were $54,,958,000 smaller. The net demand depOSits
of these banks showed a recession of $9,086,000 during;~e
five-week period and time deposits decreased $85,000. e
combined net demand and time deposits on August 10 were
$61,921,000 less than on the corresponding date a year ago.
The borrowings of these banks from the Federal Resef"d
Bank amounted to $3,621,000 on August 10, as cornp!l~e2
with $1,825,000 on July 6, and $1,119,000 on August '
1931.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
----------------~----------~---------------e
Porccntage
Percentng
Abileno.. .. .....
Austin.. . . . . . . ..
Beaumont.. .. ...
Corsicana.......
Dallas..........
EI Paso ...... .. .
Fort Worth.... ..
Galveston...... .
Houston ...... ...
Port Arthur . ... .
Roswell .........
San Antonio .... .
Shreveport.. . .. .
Texarkana" ......
Tucson .. .. .... ..
Waco ...........
Wiohita Falls. .. .
Total.. . . . ..
"Includes the
District.
July
1932
$ 3,386
13,230
12.702
2,026
113.518
12,346
63,466
17.108
106,100
3,839
2,012
41,273
20,761
5,578
7,797
7,792
8,478
- -- $430,462
figures of two
ohango over
June
cbnnge ovcr
July
1931
yenr
1932
month
S 6,200
- 30 .0
$ 3,006
- 8.4
17,463
- 24 . 2
17,379
-23 . ~
18,491
- 31.3
13,878
- 8'5
4,283
-52.7
2,344
-13 '8
164,639
- 26 .6
PO,526
- 5'0
23,110
-46 .6
14,181
-1~' 3
67,162
- 20.4
62,287
+ '6
25,960
- 34.1
17,008
+ '9
144,748
- 27.3
108,617
- 3'1
7,376
-48.0
4,397
-1~'1
3,653
-44 .9
1.062
+ '5
59,024
- 31.1
48,252
- 14 ' 7
27,080
- 25 .7
22,242
- 6' 1
8,967
-37.7
5,410
+ ~'o
10,196
- 23.6
8,201
-'4
12,400
- 37 .2
8,700
- 1°' 8
14,026
- 39.0
8,545
'::-:------- -- 60
S605,625
- 28.9
$457,704
'. bth
banks in Texarkana, Arkansas, looated in tho E,g
-----------------------------------------~~=-----~~-------=---------------------------------------------
MONTHLY BUSINESS REVIEW
5
-----------------------------------------------------------------------------------------------------------Deposits of
Member Banks
The combined daily average of net demand and time deposits of member bank.,
in this district during July amounted to
$608,722,000, as compared with $611,660,000 in June, and
$763,161,000 in July last year. The decrease from the previDAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
Combined Total
Reserve City Banks
Country Banks
Net demand Time Net demand Time Net demand Time
deposita deposits deposits deposits dellosita deposits
July, 1931. ..... $587,233
~ug., 1931.... ..
OPt., 1931... ...
Not., 1931 ......
nOv., 1931 .... ..
J ce., 1031. .....
1032. .... .
Me., 1032.... ..
Ao~., 1932 ......
~r", 1932. . ... .
JOY, 1932 .... ..
Jure, 1032.. . ...
u Y, 1932......
Fat!;,
528,797
508,850
487,314
483,970
474,935
468,172
469,110
461,557
445,050
434,865
422,504
421,727
$225,928
222,200
215,974
202,524
203,719
202,094
196,782
190,572
194,887
191,293
190,729
189,066
186,905
S257,244
255,584
242,731
232,544
231,919
220,397
221,790
222,110
221,835
216,619
212,117
207,155
209,225
$135,499
133,508
129,110
119,820
121,817
122,074
118,475
118,903
117,330
115,732
115,372
115,634
114,505
$279,989
208,213
200,119
254,770
252,060
248,538
246,373
246,904
239,722
228,401
222,748
215,439
212,502
S90,429
88,098
86,858
82,008
81,902
70,420
78,307
77,579
77,548
75,561
75,357
73,432
72,400
ous month amounted to only 0.5 per cent. Net demand deposits of reserve city banks were larger than in June.
Aoceptances executed by banks in this
district and outstanding at the close of
July totaled $779,204" as against $398,293 on June 30, and $1,233,571 on the last day of July,
1931. The increase during the month was reflected in acceptances based on the domestic shipment and storage of
goods, as a decline was shown in the classification of acceptances executed against import and export transactions.
Accepbance
MaJ'!cet
Savings
Deposits
A reduction of 2.3 per cent was reflected
during July in the amount of savings deposits reported by 14,3 banks in this district. These deposits aggregated $14.1,594.,789 at the close
of the month, as against $144,991,999 on June 30, and $168,272,817 on the last day of July, 1931. The number of savings depositors amounted to 324,516 on July 31, as compared with 327,001 a month earlier, and 355,376 a year ago.
SAVINGS DEPOSI'l'S
Number of
Reporting
Banks
gcnurnont ...... ....... .. ..
EI~Il8····················
Fort'Wor' .. ····· ·· .... .. ..
Gal
th ................
lio:s~t~n ... ...... . •.. .. ..
Port Artb~r : : : : : : : : : : : : : : :
nlO .......•.....• •
................
3·
9·
2
4
4
11·
2
8·
4
3
3·
00·
July 31. 1932
Amount of
Number of
Savin~s
Savings
DeposIta
Depositors
6,021
73,976
10,830
34,137
10,591
67,011
4,266
16,534
24,229
10,390
2,910
57,615
$ 2,948,480
25,374,941
3,230,812
11,216,154
10,125,448
30,180,512
1,761,759
14,324,285
10,004,211
5,593,528
2,297,056
24,531,603
July 31, 1931
Amount of
Number of
Savings
SavinI!"
DeposIta
Depositors
4,432
70,381
11,535
35,210
17,889
80,581
4,565
22,191
25,758
10,571
3,484
62,779
June 30,
Number of
Savings
Dcpositors
PorO~~~a~~~~~lnge
Savings Deposits
$ 3,439,706
27,082,030
3,983,418
13,224,498
11.746,862
34,038,917
1,885,005
21,195,014
12,300,957
6,352,913
2,934,687
30,087,820
- 14 .3
- 0.3
- 18.7
-15.2
- 13.8
-11.3
- 6.5
-32.4
-18.7
- 12.0
-21.7
-18.5
6,085
74,208
10,920
34,267
17,103
67,276
4,328
16,537
24,791
10,087
2,925
58,465
1932
Amount of
Savinf!8
DeposIts
Percent~e Change
Over onth in
Savings Deposita
$ 3,025,281
25,983,551
3,333,545
11.448,741
10,428,112
31,386,380
1,765,544
14,589,501
10,130,020
5,598,535
2,317,515
24,070,274
-15.9
327,001
$168,272,817
$144,991,909
355,376
5141,594,789
324,616
Totlll. ........
143
·Only 2 banks in Beaumont, 6 in Dnllas, 10 in Houston, 7 in San Antonio. 2 in Wichita Falls, and 75 in .. All others" reported the number of savings depositors.
EI Paso
Fort Worth
Houston
San Antonio
3*7
5-6
6-8
5-6
5-7
5-6
5-6
5-6
6
6
6-8
5).T6
5- 7
6-8
6-8
6- 8
8
6-8
6-10
(HO
1>-8
6-8
6-7
6*7
6-6
7-8
6-8
6-8
6-8
7-10
8
8
7
8
DaUas
4~-6
6-7
h
Waco
INDUSTRY
While the receipts and crushiI;1gs of cotton seed and the production of products
IVe
at all United States mills during July
tio re seasonally smaller than those a month earlier, operattans at Texas mills evidenced an increase over June conth l'y to seasonal tendencies. Further substantial gains over
the Sorresponding month of 1931 were witnessed at both
ac~' .t~te's and Nation's mills. During the 1931-32 season
at iVltles were, with the exception of the output of linters
1110 e as mills, noticeably above those in the previous twelveSta~ p~riod, and shipments of all products from ~nited
Pre .s mllls were substantially greater than those In the
an{'ous season. At Texas mills the shipments of oil, cake
COtt meal, and hulls were larger. Inventories of cottonseed,
onseed oil, and linters were very large on July 31.
Ucts
-2.3
Prevailing rates:
AUGUST DISCOUNT RATES
cp~~1nseed
-2.5
-2.5
-2.9
-2.0
-2.9
-3.8
- .2
-1.8
-1.3
- .1
- .9
-1.8
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States
August 1 to July 31
August 1 to JUly 31
This Season Lnst Season This Season Last Season
Cottonseed received at mills
1,655,035
1,258,531
5,016,385
4,004,510
(tons) ................... "
1,495,275
1,261,741
5,327,740
4,715,148
Cottonsced erusbcd (tOilS) ... . .
Cottonseed 011 band July 31
172,919
13,493
296,629
24.784
(tons) ... .............. . .. .
Crude oil produoed (pounds) .. . 450,135,007 372,112,0131,694,114,9161,441,881,530
704,011
003,182
2,402,078
2,164,820
Coko ond mcal produced (tons)
432,674
358,482
1,511,172
1,303,504
Hulls produced ttons) ........ .
Lintorc produced (running
195,898
875,872
194,963
823,944
bales) ............ ....... ..
Stocks on haud July 31:
715,301 17,954,405
2,186,854
7.348,171
Crude oil (pounds) .... ... ... .
24.332
114,258
146,888
21,569
Coke lind meal (tons) . ....... .
25,088
37,893
165,207
47,723
Hulls (tons) . ... .. ........ .. .
36,762
238,120
05,231
175,904
Lintors (running boles) .... .
~--------------------~~==~~~~-------------------------------
6
MONTHLY BUSINESS REVIEW
------------------------------------------------------------------------------------------------------A seasonal decline somewhat larger than
usual was evidenced during July in the
domestic consumption of cotton, and
there was also a further large reduction from the corre·
sponding month a year ago. There were only 278,656 bales
of cotton consumed during the month, as against 320,783
bales in June, and 450,884, bales in July, 1931. Total consumption during the past season was 4.,869,103 bales, which
represents a decline of 7.5 per cent from the previous season. This amount was also the lowest for any corresponding
twelve months in several years. Stocks of cotton held 011
July 31 showed a further decline from those a month
earlier, but were again above a year ago.
Textile
Milling
Some of the reporting textile mills in Texas remained
inactive during July. On the other hand, those mills that
continued operations again evidenced increased activity. The
consumption of cotton was above that in June, and only
slightly less than a year ago, while the production of cloth
was above both the previous month and the same month of
1931. Both orders and stocks of finished products held on
July 31 were smaller than those held on both comparative
dates.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
Rcccipta.. ................. ..
Exports .. . ....... .. .. . . . . .. .
Stocks. July 31.. .. . . . ....... .
July
1032
37,518
100,356
Jllly
1031
18,483
80,408
August 1 to Jill)' 31
This Season Last Season
1,563,875
2,306,342
2,202,503
1,346,842
402,179
401,002
COTTON-GALVESTON STOCK STATEMENT
(Bales)
.. : : :: :: :: : : :::: : : : :::: : : : : ::: :: : : : : :
For oth~r foreign ports ........... .. ... . ........ . ..... .
For coastwise ports .. . ........ . ..... . .. ... .. ... .... .. .
In eomprcsaes and depots .. .. . . .. .. .. ... .... . ...... . .. .
July 31,
1032
300
100
5,000
100
455,770
Total ................................. ..
462,170
~~; ~;:'~eB~it~i~
July 31,
1031
500
500
2,200
300
307,562
-
401,062
.--.;
--
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
Recoipts .. ... ............ ... .
Exports ... ............ . . . .. .
Stocks, July 31.. ............ .
July
1082
18,067
103,213
July
1031
8,248
88,097
August 1 to July 31
This Season Last SensaJl
3,185,043
2,843,534
2,788,440
2,350,242
720,30 7
1,075,164
COTTON CONSUMED AND ON HAND
(Bales)
Cotton-growing stntoa:
Cotton consumed . . . . . . . . . . .
On hand July 31 inConsuming establishments.
Public storage and comprC88es . . .. ......... . . .
United Statoa:
Cotton consumed.. . . . . . . . . .
On hand July 31 inConsuming estnblishments.
Public storage and comprC88es ............... .
July
1032
July
1031
230,186
353,044
278,656
450,884
August 1 to July 31
1'his Season Last Season
4,034,620
4,147,573
935,445
670,650
6,241,581
4,152,447
4,860,103
5,202,074
1,218,803
005,526
0,703,458
4,524,407
SEASON'S UECEIPTS, EXPOR1'S. AND STOCKS OF COTTON A'f ALL
UNITED STATES PORT8-(Bales)
----------------------------~--~------------Reoeipts . .. .. , . ...... ... ........ . . . .....• . ...........
Exports: United Kingdom . . . . . .. . . . . . . .. .. .. .. .. .. . ..
France.. . . . . . . . . . . . . . .. . . . . . .. . . . . .. . • . . . . .
Italy.. .... ... .. ... .. .. .. .. ........ .. .......
Germnny.. . . . . . . .. . . . . .. . . . . .. ... . .. . . . . . ..
Other Europe.. . . . . . . . . .. . . . . . .. . . . .. . .. .. . .
Jaran ... . . .. . . .. . .. . . . . . . . . . . .. . . . . . . ... . ..
AI other countries.. .. . . . . . . . . . . . . . . .. . .. . . ..
Total foreign ports...... ...... . .. . ......... .
Stocks at nil United States ports, July 31..... .. . .. ......
August 1 to July 31
This Season Last Sensal!
0,041,448
10,061,016
1,053,714
1,345,023
014,223
463.092
476,503
640,050
1,039,947
1,560,408
708,999
830,553
1,228,410
2,294,300
738,14 1
1,540,620
6,700,003
8,707,055
2,767,0 20
3,377,773
.-=;:;
Although seasonal declines usually occur during the closing month of the season, the receipts and exports of cotton at
the ports of Houston and Galveston during July reRected a
substantial increase over the preceding month, and were
again noticeably above the corresponding month of 1931.
During the past season the combined total exports of cotton
from both Houston and Galveston aggregated 5,080,943
bales, and receipts totaled 5,552,285 bales. These amounts
represent increases of 37.4, per cent and 26.0 per cent, respectively, over the twelve months of the previous season.
Stocks held on July 31 were somewhat larger than those
held at the close of the 1930-31 season at both ports.
Cotton
Movements
The total foreign exports of cotton from all United
States ports during July were materially above the July
average. Exports aggregated 449,476 bales during the month,
as compared with 360,205 bales in June, and 259,059 bales
in July, 1931. During the 1931-32 season 8,707,055 bales of
domestic cotton were shipped to foreign countries, which
represents an increase of 28.8 per cent over the 6,760,003
bales exported during the preceding season. The strong
foreign demand for American cotton which was in evidence
during the latter half of the 1930-31 season was maintained
throughout the greater part of the succeeding twelve months.
With the exception of France and Germany all major im·
porters of American cotton increased their takings considerably during the past season.
SPOT COTTON PRlCE8-(Middling Basis)
(Cents por pound)
-----------------------------J-uly,l-0S-2------A-Ug--U~
High
New York ............ .... . . .. . . . ....... .
Now Orleans ........ . ................... .
Dallas .... ........... . ................. .
Houston ............. . .. .... ..... .. .. " .
Galveston. . .. . . .. . .................... .
U~
5.65
6.00
0.05
Low
U~
6.10
5.46
5 .50
1932
U~
6.80
7.25
7.25
Production of crude oil in the Ele~er~l~
Federal Reserve District was at a hlg 1ut
level during July than in the previous month. The out~50
totaled 29,209,600 barrels, as compared with 27,850, r
barrels in June, and 34,850,900 barrels in July last yeis'
e
Daily average yield, which amounted to 94.2,245 bal'r u1 :
011
was 13,903 barrels higher than in the preceding 111
•
Drilling operations, while still on a large scale, wer ~fd
preciably smaller than in June. Of the 862 wells co~P e of
in July, 726 were successful, having an initial Yleld9B3
4,602,184. barrels. In the previous month, there were fI sb
wells completed, including 807 producers with a total u
output of 5,84.7,84.7 barrels.
0
Daily average production in Texas amounted to 877,0~b
barrels, being 14,515 barrels larger than in June. SOUse
Texas and the Gulf Coast accounted for ~ost of the in c1:ea is:
and Central-West Texas was the only maJOl' area that leg
Petroleum
l
---------------------------------~~77.==~~~~==~~=_~=======_--------------------------------
MONTHLY BUSINESS REVIEW
7
-----------------------------------------------------------------------------------------lered a decline. Increased field activity was reported in the
Latter area and in South Texas. New Mexico and North
i OU1'siana showed only slight declines in daily output durng J uly.
JULY DRILLI NG RESULTS
=--
OIL PRODUCTION-(BarrcJs)
---------------------------------------Inoreaso or Decreaso Ovor
~~I:~~rw08·· · ······ . .. ... .
East C eat Toxas .... .
'I'ox 8ntral ToX08 . .. .
Sou~ 1,~;:tal .. .... .. .......
8 • . .• . "
. . • .. .•
June, 1932
July, 1032
Total
Daily Avg.
Total
Daily Avg.
3,244,150
104,050 + 109,350
+
157
0,201,450
202,050 + 193,650
310
393 ,300 + 460,700
+ 2,247
12,192,300
+ 5,025
3,713,800
110,800 + 270,550
+ 7,390
1,740,850
56,350 + 278,250
27,188,550
1,103,600
917,450
877,050
35,600
20,505
+1,312,500
+
18,050
+
28,800
+14,515
585
27
Total Distriot. . . .. .. . 29,209, 600
942,245
+1,350,350
+13,003
No M ,],otal Tex08 . . . . . . . ..
NO~h ~I~O. . . . . . . . . . . . . . . . . .
ulslana.. ... ... .. .. ..
Total Toxas .......
Now Mexico ....... . ... .. . .
North Louisiana .. .. . ... ....
832
4
26
713
4
0
16
103
2
15
4,582,787
16,412
2,085
July totals, distriot. .. . . . ...
Juno totals, distriot . .........
862
083
726
807
18
17
118
150
4,602,184
5,847,847
ures
23
30
8
20
13
Building
Construction operations in this district
during July were on a scale substantially
smaller than in either June this year or July last year. The
valuation of building permits issued at principal cities
amounted to $844,572, as compared with $1,157,988 in the
preceding month, and $3,259,703 in the corresponding
month last year. The decreases amounted to 27.1 per cent
and 74.1 per cent, respectively. As was the case in June,
five of the reporting cities showed an improvement over the
previous month.
CRUDE OIL PRICES
----
Gas
Wells
1
7
1
6
1
Fail-
North Toxns ...............
Contral West TOX08 ....... ..
Enst Coatral Telns ........ .
South Toxns .. ........... . .
Texna Constal ..............
Producers
20
47
501
38
17
(Oil statistios oompiled by The Oil Weekly, Houston, Texas)
-----------------------------------------------August 11,
August 12,
1032
~~~~ ~OO8tal (408r. nnd above) . ...... . ... . ' " . ... . .. . $1.00
1.00
_p .0X08 and North Louisiana \40 gr. and abovo) . . . . .
fl CO paid for Tex08 Coastul, 35 gr. and abovo.
Initial
Production
4,435
7,846
4,545,060
10,053
13,503
Complotions
44
84
600
73
31
1031
$ .51.42
BIDLDING PERMITS
July, 1032
No.
illo .......
n, ... . ... .
1Il0nt ..... .
us Ohristi ..
. .. . . . . . .
\~~r'th' ::: :
t ton " ...
Ar~h;;~""":
ltonio . . . .
eport . . ...
ii,; 'F~I'ts:: :
otnl .....
Valuation
July, 1931
No.
--- ------ --15 S 8,352
91,302
03
12, 135
74
11,026
35
242
201,831
19,006
37
94
158,245
41,089
07
135,088
170
5,606
27
120,516
151
17,456
103
20
16,887
4,953
17
Poroentu,8o Chungo
ValuatIOn Ovor
Year
Valuation
45 S 161,509
218,045
100
71,702
67
34,455
52
274,245
251
69,390
62
353,668
161
82,562
11 2
305 1,331,621
273,829
64
238,239
246
52,495
137
33,760
22
64,103
11
--- ------ --- -----$3,259,703
1,184 S 844,572
1,641
-94.8
-58. 1
-83. 1
- 68.0
-26.4
-71.3
- 55.3
-50.2
- 80.9
-97.9
-40.4
- 66.7
-50 .0
-S2 .3
------74. 1
Ju no, 1032
No.
Valuation
16 $ 15,645
506,560
83
18,372
75
15,484
33
111,716
295
19,674
45
168,754
135
23,884
121
145,503
184
4,696
30
47,627
132
48,003
108
26, 180
24
5,881
14
--- -----$1,157,088
1,304
following the substantial increase which
lio
occurred in the previous month, a l'educce~ of 17.0 pel' cent was reflected in the output of Portland
lOt nt In Texas during July. The month's production
hI ~ ed 278,000 barrels, as compared with 335,000 barrels
shi une, and 646,000 barrels in July a year ago. Aggregate
ill i~ents Were 307,000 barrels, being 5.2 pel' cent less than
spo e. previous month, and 55.9 per cent under the correthe ndlng month last year. Stocks on hand declined during
n10nth and amounted to 667,000 barrels on July 31, as
i
Porcentago Chango
Valuation Over
Month
+
+
46 .6
82. 0
33.0
28.8
80.7
1. 2
6.2
+ 72.0
7.2
+ 21.3
+153.0
- 63.6
- 35.5
- 15 .8
-
---- 27.1
Sovon Months
1082
No.
Valuation
161 $ 215,407
4,805,414
638
502
223,325
101,783
233
1,902
1,618,018
205
160,571
084,695
897
844
376,536
1,452
1,958,609
271
68,863
1,207
1,198,560
828
253,419
222
233,213
108
471,419
1931
No.
Valuation
347 S 1,059,002
052
1,538,716
742
864,530
375
354,780
2,268
3,141,600
503
761,598
1,378
3,052,010
872
1,740,750
2,243
8,013,000
423
840,156
1,577
1,672,521
1,024
676,744
105
1,621,000
70
120,525
0,710 $12,664,832 12,678 $ 26,359,737
Poreonta,8e Chango
ValuatIon Ovor
Period
- 89.0
+212.3
- 74.2
- 71.3
- 48 .5
- 78 .9
- 67.7
- 78.4
- 75.6
- 02.4
- 28.3
- 62 .6
- 85.6
+291.1
---- 52.0
against 695,000 barrels a month earlier, and 626,000 barrels a year ago_
PRODUCTION, SIDPMEN'l'S, AND STOCKS OF PORTLAND CEMENT
(In thousnnds of barrels)
% obango from Jan. through
July Juno
July
% ohange
1931
July 31 from )omr
1932 1932
Production at Texns mills ..... . . .... 278 - 17 .0 -57 .0
2, 140
-39.0
Shipmonts from Texns mills.... ...... 307 - 5.2 -55.0
2,199
-41.2
Stoola! at end of month at Texns mills 667 - 4.0 - 6.5
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board as of Augus t 22, 1982)
JunVolume of industrial output declined seasonally from
ere: td July, while factory employment and payrolls dethe Se by more than the usual seasonal amount. In July
highgeneral level of wholesale prices was about 1 per cent
Of ~J: than in June, and in the first half of August prices
Scrv
leading commodities advanced considerably. Ree ank credit declined somewhat in the four weeks end-
bY
ing August 17, reflecting chiefly a substantial growth in the
country's stock of monetary gold.
PRODUCTION AND EMPLOYMENT
Industrial production declined by about the usual seasonal amount in July and the Board's index, which is adj usted to allow for the usual seasonal variations, remained
--------------------------------~~~==~~~~~~~~==~~=-------------------------------8
MONTHLY BUSINESS REVIEW
~--------------------------------------------------------------------------------------------unchanged at 59 per cent of the 1923-1925 average_ Activity
decreased seasonally in the steel industry, by slightly more
than the usual seasonal amount in the lumber, cement, newsprint, and meat packing industries, and by ~ubstantially
more than the seasonal amount in the automobIle and lead
industries. Output of shoes, which ordinarily increases in
July, declined. At woolen mills activity increased by a substantial amount and at silk mills there was a seasonal increase in production. Activity at cotton mills decreased as
is usual in July, while sales of cotton cloth by manufacturers
increased considerably. Output of coal increased from the
low level prevailing in June. Reports on the volume of
factory employment and payrolls showed substantial declines from the middle of June to the middle of July. In the
machinery, women's clothing and hosiery industries, and at
railroad repail- shops, the number employed decreased by
considerably more than the usual seasonal amount, and at
shoe factories the increase reported was smaller than usual.
In the woolen goods industry a substantial increase in employment was reported. Value of building eontracts awarded, as reported by the F. W. Dodge Corporation, continued
at a low level during July and the first half of August.
Prospects for many leading crops, including corn, spring
wheat, potatoes, and tobacco, were reduced somewhat during July, according to the Department of Agriculture. The
estimated total wheat crop, based on August 1 conditions,
is 723,000,000 bushels, a decrease of about 175,000,000
bushels from last year's large crop reflecting a reduction of
350,000,000 bushels in the winter wheat crop, offset in part
by an estimated increase of 175,000,000 bushels in the spring
wheat erop. The first official cotton estimate, as of August
1, was 11,300,000 bales, as compared with crops of 17,100,000 bales last season and 13,900,000 bales the year before. The indicated production of corn is 2,820,000,000
bushels, which is substantially larger than the crops of the
last two seasons and slightly larger than the five-year average.
DISTRIBUTION
Volume of freight traffic decreased somewhat from June
to July, and value of department store sales was substa n'
tially reduced.
WHOLESALE PRICES
The general level of wholesale prices, as measured by
the monthly index of the Bureau of Labor Statistics, ad·
vanced from 63.9 per cent of the 1926 average in JuneJo
M.5 per cent in July. Between the middle of July and . ~
third week of August prices of livestock and meats whlc t
had previously advanced considerably, declined somew!lll
while price increases were reported for many other leadill~
commodities, including wheat, textile raw materials :n
finished products, non-ferrous metals, hides, sugar, co uce ,
and rubber.
BANK CREDIT
The total volume of reserve bank credit outstandinS
h
which had increased $850,000,000 between the end of Marc.
and the third week of July, declined $95,000,000 in the fOk~
weeks to August 17, and in the same period member ban 5
increased the reserve balances by $4.5,000,000, these chang~s
reflecting chiefly the addition of $95,000,000 to the coun$t~b.
stock of monetary gold and an inflow to the banks of
;.
000,000 in currency. Total loans and investments of rep or r
ing member banks in leading cities were $250,000,000 la~gee
on August 17 than four weeks earlier. Total loans o~ t
banks continued to decline throughout the period, whIle !n
investments increased substantially, reflecting an increase IC'
holdings of United States Government securities in conn~
tion with Treasury financing operations. Time deposit$8~:
creased by $95,000,000 and net demand deposits by 1 ~~
000,000. Money rates in the open market remained at 0 n
levels. Successive reductions brought the prevailing ra~es t~e
prime commercial paper to a range of 2-2* per cent Jl1
first part of August.
cle
@FedFRASER