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MO~!E~A~~ES~~O~T~t~:~ D~~~'EW
[
[
c.
CHAS. C. HALL-W. J. EVANS
C. WALSH
Cheirmen end Federel Reserve Agent
I
]
Assistant Federal Reserve Agents
~~~~~~d~E~~~~'r~~~~'r~~~'~r~~(~C~:~rm~p~i~le~d~,~rO~c~t~o~b~e~~~r~1~5~'~1~9~:~2~)~~~,c~~~~,c~~~,~.~~~,~r~~~,~
~lUme
17,
No.9
Dallas, Texas, November 1, 1932
This copy is r eJensed for publieatinn in afternoon pnpel's-
October 31
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Federal Reservo District
-------------------------------------------Septombor
Chango from
August
1032
----~~-----------------I----------I--------B~~~~ebif4 10 indh'idual accounts (at 17
Depart .... · ...... · .. ··· · · · · .. · .......... .
nCBorv mgnt storo sales ..................... .
of lD~ntt~~ loans to membor banks at end
R~ye bank 'r~iio iit '~~d 'or' ;';o~th '.:: : :: : :: :
corn~ng {>Or mil valuation at larger eontcrs ... .
COlllm~re!al failures (number) .. .... . ........ .
Oil proJela . failures (liabiliti.,,) ............•.
~etlon (barrels) .. . . . ......... . .... ..
$430,508,000
+ 2.7~
+ 54 .8'10
$ 11,107,365
- 28.0%
- 1.2 pointe
- 20.4%
- 20.3 ~
- 46.86'.1'
62.5%
808,014
65
$ 1,237,934
2J,I01,500
+
1.8ra
an/ st~onger demand f~r merchand~s~ in. both wh?lesale
m retaIl channels and mcreased actIVIty m some hnes of
d:~ufacturing were significant developments in this district
Cit~lng the past month. Sales of department stores in larger
'vhl~s reflected a gain of 55 per cent over those of August,
;ch Was considerably more than seasonal, and were only
IVn cent below sales in September, 1931. Distribution at
pa: ~sale, likewise, showed a larger than usual seasonal exthe Slon,. and comparisons with the corresponding month of
rna ~hevloUS year were the most favorable reported in many
pton. s. In fact, sales in some reporting lines closely apate blln~ted those in September last year. Although retailer~
ng a wider assortment of goods, they are continuing
the
and po ICy of holding commitments to well defined needs,
sum are lllaking frequent reorders in small volume as contern er demand arises. The decline in the price of cotton
Sepiered the enthusiasm evident in late August and early
has tnber, yet late reports indicate that October business
een very good_
a
Y
ur
b
The
.
.
'd
mate . Ibu smess morta I' rate m t h' d"
lty
IS Istnct eVl ence d a
amo tla betterment. Both the number of failures and the
\VeteUr t of liabilities declined sharply in September and
OWer than in any month in more than a year.
The past month witnessed a seasonal liquidation of in-
debtedness at the Federal Reserve Bank, and an expansion
in the loans and investments of member banks in selected
cities. Federal Reserve Bank loans declined from $12,891,000 on September 15 to $10,331,000 on October 15, and
on the latter date were $9,008,000 lower than a year ago.
The loans and investments of member banks in larger cities
rose to $388,04.3,000 on October 12, which was the highest
level reached since early in July. The daily average of combined net demand and time deposits of member banks
amounted to $600,331,000 in September, as compared with
$597,1~2,000 in August, and $724,824,000 in September,
1931. lhe strong demand for the 3 per cent United State'!!
Treasury Notes dated October 15 was manifested in subscriptions of $98,886,400, against which allotments of only
$3,617,300 were made.
Agricultural prospects showed no material change during the past month. Heavy rains damaged crops in some
areas but the improvement which occurred in other sections
as a result of the additional moisture was an offsettin cr factor. While harvesting operations were retarded duringt:> September by excessive moisture, farmers have made rapid
progress with this work since the advent of favorable weather early in October. There is an excellent season in the
ground and the fall seeding of small grains is well under
way. Reports indicate that the portion of the crop now up
is looking fine. Ranges have shown a marked improvement
and are now in the best condition for this season reported
in several years. Livestock are, likewise, showing noticeable
improvement and are expected to go into the winter in fine
shape. The local demand for livestock is becoming stronger.
Construction activity, as measured by the valuation of
building permits issued at principal cities, declined to a
low level, the September total being 20 per cent below
August, and 68 per cent under a year ago. The production
of cement reflected a substantial increase as compared with
the previous month, but was smaller than in the same month
last year. Shipments were less than in either comparative
month.
BUSINESS
;
The improvement in business at wholesale, which began in August, continued
l"Utth
to be in evidence during September.
Cept £:1' sU.bstantial increases were reported in all lines exPet Ce r~ llllplements. The sales of dry goods showed a 20.4
and i nthlncrease which was contrary to seasonal tendency;
n t e case of hardware and drugs, the pick-up was ap-
preciably larger than is usual at this season. More favorable
comparisons with a year ago were recorded for the second
consecutive month, the decreases from September, 1931
ranging from 1.2 per cent in the case of hardware to 14..
per cent in the case of drugs. As retailers generally are
adhering to the policy of ordering in small lots and for
immediate shipment, it appears that the heavier demand is
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
5
~------------------------------77~~~~~~~~~~~~==~---------------------------------
2
MONTHL Y BUSINESS REVIEW
----------------------------------------------------------------------------------------------The distribution of farm implements at wholesale during
traceable directly to actual movement of goods into the
hands of consumers. Business was reported to be fairly well September was 13.0 per cent less than the volume of 8
sustained in the early part of October. The volume of col- preceding month; yet the decline from the correspond?n~
lections turned upward in September and was seasonally . month a year ago amounted to only 6.0 per cent, as ag s1ns
a like decrease of 45.3 per cent in August. Collections duro
larger than in the preceding monLh.
Following the large increase of 153.5 per cent, which ing September showed a slight increase.
was reflected in the August business of wholesale dry goods
CONDITION OF WHOLESALE TRADE DURING SEPTEMBER, 1932
firms, there was a further gain of 20.4 per cent in the volume
Perccntnge of increase or de~rease inof sales during September. The latter increase was particularly encouraging, in view of the fact that a seasonal decline
Net sales
Net sntes
Stoeks
nntio of col1coSept., 1032 .Tuly 1 to date Sept., 1932 tiolls during SoP~
in distribution is usually visible in this month. The demand
oompnred with compared with compared with to aooounts t ng
Sept., Aug., same period Sept., Aug., notes outetan ,n
during September was only 3.6 per cent less than in the
1031
1932
I..t yoar
1931 1932
on August S1
corresponding month last year, as compared with a similar
Groceries .... .. ... - 7.3 + 6.5
-13.9
-13.0 + 5.4
71.7
Dry goods ........ - 3.0 +20.4
-16.1
- 34.2 + 1.2
26.9
decline of 12.4. per cent in August, and 44.1 per cent in
Fnrm implemellte .. - 6.0 - 13 .0
-41.2
- 5.0 - 1.3
2.7
July. Purchases by retailers were for the most part necessiHardware ..... ... - 1.2 +19 .8
-17.0
-12.1
.3
27.0
Drugs ............ -14.5 +14.5
-22.3
-18.5 - . 9
34.2
tated by current requirements, there being little disposition
to buy in anticipation of possible future needs. Collections
reflected a furLher increase of 28.9 per cent over August.
Retail
A pronounced upturn was witnessed dU~:
ing September in the business of ?~psr f
A considerable improvement in the sales of reporting Trade
ment stores located in principal cIties be
wholesale hardware firms occurred during September, as
evidenced by an increase of 19.8 per cent over the previous this district. The better public sentiment, together with th
month, and a dollar volume only 1.2 per cent under that of long delayed purchases of consumer needs, stimulate~ t :
September, 1931. Only part of the business gain was attribut- demand for fall merchandise. Sales of the following Itei11
able to seasonal influences. Indications are that consumer were above those a year ago: women's and children's glove;.
demand is expanding, and as merchants generally are carry- neckwear and scarfs, children's shoes, all items of worn~:
ing moderate stocks, they are finding it necessary to replen- and misses' ready-to-wear, and men's and boys' shoes. s
ish supplies at frequent intervals. There was a seasonal gain in total dollar volume of sales during the month wOe
v
considerabl y larger than seasonal, being 54..8 per cent sbo 5
pick-up of 9.6 per cent in collections.
that in August, and the decline from a year ago, which \~~.
Although the demand for groceries at wholesale during
September showed somewhat less expansion than usually only 8 per cent, was the most favorable recorded since Oc t.
ber, 1930. This bank's seasonally adjusted index of deps.r
occurs at this season, the comparison with the same month
ment store sales also reflected a substantial betterment, In'
a year ago continued to improve. The total sales of reporting wholesale grocery firms were 6.5 per cent greater than creasing from 63.6 in August to 70.1 in September.
Inventories of merchandise held by reporting firrns o~
in August, but 7.3 per cent under the volume of September,
1931. During the third quarter of the current year, they September 30 showed a further seasonal increase of 9. 5 ,F;c
averaged 13.9 per cent less than a year ago. Indications are cent, but continued materially below those a year ago'193Z
that business is more satisfactory in some sections than in rate of stock turnover during the first nine months of 31
others. September witnessed an improvement of 21.7 per remained below that in the corresponding period o~ 19 Z3
but for September this year the rate was .30, as agalD st .
cent in collections, as compared with the previous month.
in September last year.
A rather general in crease of 14.5 per cent was shown in
I in'
the demand for drugs at wholesale during September, this
Collections during September evidenced a seasons The
gain being substantially larger than seasonal. The month's crease, and were approximately the same as a year ago. t.
sales were 14.5 per cent below the level of September, 1931; ratio of charge accounts collected during September to OUIlS
yet this comparison was the most favorable recorded in the standings on the first of the month was 27.7 per ~en~ p'
past fourteen months. The volume of collections increased against 26.4, per cent in August, and 27.8 per cent In e
tember, 1931.
seasonally.
0
BUSINESS OF DEPARTMENT STORES
Tetal sales (porcentage):
September, 1932, oompared with September, 1931 ................................
September, 1932. compared with August, 1 9~2 .. .. ...............................
January 1 to date compared with same period last yoar ........... .. ..............
Credit sales (pereentn"e):
September. 1032, compared with Soptember. 1931 .... .... .. .. ......... .. ••. . .. .. .
September, 1932, compared with August. 1932 ...... ..... . .......................
January 1 to date eompnred with same poriod Inst yoar ..... ............... .. . ....
Stocks at end of montb (pcrccntn~c):
September, 1932. compnred with September, 1931. . ........... ... ....... .........
September, 1932, compared with August, 1932 ................. . .... .... ....... ..
Btook turnol'er (rnte):
nato of stock turnover in September, 1931. ......................................
Roto of stock turnover in Scptemb", 1032 .. .. .......................... .........
Rota of stock turnover January 1 to September 30, 19~1. . ... ...... ... ........... .
Rate of stock turnover January 1 to September 3D, 1932 .... , .....................
Ratio of Septembor eol1eotions to aceounts receivnble outstanding September I, 1932......
Inde,es or department store sales:
Unndjusted September. 1932 ........ .... .... ................... . ...............
Adjusted September, 1932 .....................................................
Indexes of department store "toeks:
Unadjusted September, 1032 .. . .... .... .......... .... . .................. . ......
Adjustod September, 1932 .....................................................
Doll..
- 2.7
+51.7
-23.8
Fort Worth
-12.9
+46.6
-27.3
Houston
-12 .0
+72 .6
-28.0
San Antonio
-13.8
+57.9
-30.4
- .0
+44.4
- 3.1
+55.6
-24.7
- 8.3
+68 .0
- 26.4
-18 .5
+72 .9
-31.2
-20.3
+70.6
-30.5
- 2.7
+59.8
-25.8
-23.3
+10.0
-25.8
+ 7.2
-44 .8
+10 .6
-34.8
4.3
-28. 0
+10.5
.24
.30
2.13
1.98
28.8
.17
.20
1.63
1.51
21.6
.26
.38
2.22
2.40
30.0
.38
.44
2.86
2.62
31.4
.18
.25
1.89
I. 77
25 . 6
73 .3
69.2
76.8
70 .2
88.0
87.1
68 .5
67.2
48.5
44.5
69 .7
62.8
47.0
42.3
al.3
+
34 .1
Others
-23.1
---
Total District
_ 8.0
+54 .8
_26.1
_ 0.4
+01.9
_27.1
-29.9
+ 9.6
.23
.30
2.00
1.98
27.7
74. S
70.1
52.2
47. 6
...-r:?
-----------------------~~==~~==~~~====~--------------------MONTHLY BUSINESS REVIEW
3
----------------------------------------------------------------------------------------------Commercial
Failures
The improvement in business and industry during the past two months was reflected in a reduction in commercial failres . The September insolvencies record, as reported by R.
. Dun & Company, was more favorable than in any other
C
~:~P Co n-
AGRICUL TURE
There was relatively little change in the
crop prospects in the Eleventh Federal
f
Reserve District during September. While
requent heavy rains did some damage to crops in certain
areas, this was about offset by the improvement in other
?rops as a result of the added supply of moisture. Fall plowln~ and seeding of small grains were retarded by the wet
~Ol,l, yet there is now ,ample moisture in th~ grou.nd and
?l1ners have made falr to good progress WIth thIS work
SlnC~ the beginning of October. Reports indicate that the
PortIon of the crop now up is making rapid growth.
tltons
h The prospects for cotton production showed very little
~ nge during September. The indicated production on Oco er 1 for this district, as derived from the estimates, by
states, of the Department of Agriculture, was 4,741,000 bales
compared with 4,744,,000 bales on September 1. Although
Lal prosl~ective ,production for Texas was ~owered ~9,000
. les, thIS declme was nearly offset by hIgher estImated
Yle ds for Louisiana and Oklahoma. The Department estioated the condition of the Texas crop at 59 per cent on
etoher 1, which indicates a per acre yield of 140 pounds
?nd a total production of 4,063,000 bales. Heavy rains dur~~g September were unfavorable to the crop in many secns of the State and in some areas the good effect of
bavorable weather was offset by boll weevil damage. The
.est condition obtains in Northwest Texas, where product lon'
Is expected to about equal that of a year ago, but the
~~op might be reduced in the event ~f ~arly freezes ~nd
i favorable harvesting weather. The mdICated productlOJ;l
all other sections, except West and West-Central, is someth at below the five-year average and considerably smaller
f an the large yield of 1931. There was no change in the
porecasted production in Arizona and New Mexico. The
ardduction forecast for Louisiana was raised 27,000 bales
p~ k.that for Oklahoma was increased 31,000 bales. Cotton
ab~ Ing in Texas during Sep,tember was retarded con~ider
p ,Y by the frequent heavy rams. The 1,595,158 bales gmned
rl
te .or to October 1 was the smallest since 1922 and is maa:dal~y ~elow the average for the past ten years. Picking
in Lgl~~lDg were also slow in Arizona and New Mexico, but
lik oUI~lana and Oklahoma, ginnings exceeded those of the
Ye e perIOd in 1931, and compared favorably with previous
OC~~b Farmers have made good progress with picking since
er 1, due to the open weather.
Au Am~le moisture in most sections of Texas since mi~
pr ~ust ~mproved the production of late corn, and the State 8
as l~chon Was estimated by the Department of Agriculture
105 5 8,4,33,000 bushels on October 1, as compared with
ti o ' 80,000 bushels on September 1, and an actual producn
f or f ?~,248,000 bushels in 1931. Although the estimates
sli h OUlslana, New Mexico, and Oklahoma were reduced
at 12~Y' the production for the Eleventh District was placed
558 ,OOO bushels, which was 2,4,58,000 bushels larger
Iha
n
ab o t Ie estimate a month earlier, and 14,116,000 bushels
ero \Ie the actual production last year. The grain sorghum
ico p~ deteriorated somewhat during September in New Mex!ttta d Arizona, but the October 1 estimates in all states
tha; d to this district, except New Mexico, were higher
t e 1931 harvests. The Department's forecast for tame
h
fu
r
\h
°
I.
i
'hh
month during the past year. There was a total of 65 defaulting firms during the month, as compared with 92 in August,
and 93 in September last year. Combined liabilities
amounted to only $1,237,934, as against $2,327,615 in the
previous month, and $2,229,515 in September, 1931.
hay production in this district rose from 1,009,000 tons on
September 1 to 1,024,000 tons on October 1 as the improvement in the Texas crop more than offset the decline in Louisiana, New Mexico, and Arizona. The final harvest in 1931
was 991,000 tons. The October 1 estimate for wild hay in
Texas was 186,000 tons, as against last year's yield of
174,000 tons.
The Texas peanut crop showed an improvement in September, the Octob.er 1 estimate being 103,500,000 pounds, as
compared with 99,900,000 pounds a month earlier, and an
actual production of 85,330,000 pounds last year. The prospects for this crop in Oklahoma declined slightly during
the month, but the estimate is still considerably larger than
the 1931 yield. The sweet potato crop in Texas showed no
change and it declined somewhat in Louisiana and Oklahoma, but in each state the indicated production is considerably higher than a year age. The Texas rice crop, which
received a severe setback in August as a result of the
tropical storm, showed a further decline in September due
to the unfavorable harvesting weather. This year's production was placed at 8,4,18,000 bushels, as compared with
10,653,000 bushels last year. The prospects for pecans in
Texas, while slightly better on October 1 than a month
earlier, are considerably below the large crop of 1931. The
outlook for the Oklahoma crop is not only better than on
September 1, but also materially larger than the harvest
last year. On the other hand, the Louisiana crop showed reduced prospects as compared with both a month ago and
last year.
Livestock
Ranges over most of the Eleventh District
showed a marked improvement during
September, and both ranges and livestock generally are now
in good to excellent condition. The outlook for winter ranO'e
feed is the best in several years, but warm weather is need~d
to permit the curing of green grass. Winter grains are making good growth and should furnish considerable winter
grazing. Due to the large production of feed crops there
should be an ample supply of supplementary feed.
According to the Department of Agriculture, the condition of cattle ranges in Texas rose 8 points during September, and the 91 per cent of normal condition reported on
October 1 was the highest for that date in any of the past
ten years; it was 20 points higher than on the corresponding
date in 1931, and was 10 points above the ten-year average.
The 96 per cent of normal condition of sheep and goat
ranges on October 1 compares with 88 per cent on September 1, and 72 per cent a year ago. The condition of cattle advanced 2 points during September, that of sheep 3
points, and that of goats showed no change. In each instance, the October 1 condition figure was well above that
obtaining on the same date last year. The frequent rains
during September caused a shrinkage in all classes of livestock, and flies have been bothersome. Spring calves have
made good growth this year and are heavier than usual. The
Department of Agriculture reported that local trading of
cattle has been active and that a large number of young
ewes have changed hands due to the good local demand. The
fall shearing of sheep has been light and was delayed by
---------------------------------------------------------------------------------------------------'
MONTHL Y BUSINESS REVIEW
4
---------------------------------------------------------------------------------------------------
the heavy rains. Goat losses were reported to be heavy following shearing, There was also a substantial improvement
in the condition of livestock and ranges in Southern New
Mexico and Southeastern Arizona,
A sharp falling off in the receipts of
livestock at the Fort Worth market was
in evidence during September. The arrivals of cattle, calves, and sheep were not only substantially
smaller than in the previous month but were noticeably
below those of September, 1931. While the receipts of hogs
were moderately under those in August, they exceeded those
of the corresponding month last year by a considerable
margin.
Movements
and Prices
Despite the smaller receipts of cattle, market prices on
most classes have been weak and have worked gradually to
lower levels. Hog values followed an uneven course, but at
the middle of October prices were fully $ .50 lower than
a month earlier. Sheep and lamb prices tended downward
during the last half of September, but were about steady in
the first two weeks of October,
FORT WORTH LIVESTOCK RECEIPTS
(Number)
September
Cattle ....... . ...
Calves .. . .... . .•
Hog•. ..... . ....•
Sheep ....... . ...
1032
32,583
1u.o32
16,877
28,591
September Change over
year
1931
47,129
28,128
12,247
42,239
-14,546
- 9,006
4,630
-13,648
+
Augu.t
1032
38,837
22,775
17,819
77,100
Ohangeover
month
- 6,254
- 3,743
942
-48,608
--COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
September
Beef .teers . .. . .... .. .......•..•.... . •. . ..
Stooker .teers ............. . . . ...... . .....
Buteher cows .•.............•......... . ..
~i~ffm~·iiiiiiiiiiiiiiiiiiiiiiiiiii
1032
$7.75
5.60
4.00
3.40
6.25
4.40
2.25
4.75
September
1031
$8.35
4.40
4.25
3.00
6.00
6.50
3. 75
6.00
-
Augu.t
1932
$8.00
5.75
4.00
3.00
5.25
4.50
2.25
4 .50
"""""
FINANCE
There was a gradual liquidation of indebtedness of member banks at the Federal Reserve Bank during the past thirty
days, Member bank borrowings, which
amounted to $12,891,000 on September 15, had declined to
$10,331,000 on October 15, and on the latter date were
$9,008,000 below those on the same date in 1931. This reduction came from both reserve city and country banks, and
at the end of the period reserve city banks were practically
out of debt at the Federal Reserve Bank. This was in marked
contrast to developments a year ago when reserve city banks
were increasing their borrowings. On October 15 this year
there were 214 banks indebted to the Federal Reserve Bank,
as compared with 255 banks thirty days earlier, and 24.5
banks on the same date in 1931. Holdings of bills purchased
in the open market amounted to $865,000 on October 15, as
compared with $867,000 on September 15, and $23,443,000
on the corresponding date last year. Investments in United
States securities rose to $4,0,721,000 at the middle of October, which was an increase of $10,000,000 during the month,
and $20,556,000 over those a year ago. The reserve deposits
of member banks rose $1,657,000 between September 15 and
October 15, but on the latter date they were still $9,717,000
lower than last year. Federal reserve notes in actual circulation showed very little change during the month, and
continued considerably under a year ago.
Operations of
the Federal Reserve Bank
OONDITION OF THE FEDERAL RESERVE BANK
(In thousands or dollars)
Total cneb reserves .... . .............. . .. .
Disoounta ror member banks . . ...•..... . •..
/)ther bills disoounted . . .... .. .. . ......... .
Billa bought in the open market ........... ,
United States seourities owned ..•..•......•
Other investments . . . ............•....•...
Total earning aesets ..................... .
Member bank reserve deposita . ....... . ...•
Federal resorvo
DOtes
Condition of
Member Banks
in Selected
Cities
in actun.! oiroulation . ..
0 0t. 15,
1032
$ 41,052
10,331
None
00t.15,
1031
$ 56,251
10,339
31
40,721
5
51,022
43,601
37,841
20,165
865
23,443
7
62,085
53,408
51,306
Sept. 15,
1032
$ 47,576
12,801
None
867
30,721
5
44,484
42,084
37,714
A substantial rise in the loans and investments of member banks in selected
cities of the Eleventh District oocurred
during the five-week period ending October 12. The investments of these banks
in Government securities at the close of the period totaled
$91,4,01,000 which was $8,808,000 greater than five weeks
earlier, and $15,796,000 larger than a year ago. Holdi~gs
of other stocks and bonds were increased $1,340,000 durIng
the period, but were $1,820,000 below those held on oeD
tober 14" 1931. While loans on securities declined $710,0 0
between September 7 and October 12, "all other" loans ~05e
$4,4.00,000 and reached the highest figure recorded sln~
early in July. Total loans of these banks on October 1 •
however, were still $52,811,000 lower than on the cor~e
sponding date last year. While their net demand depo5JI~
declined $4,554,000 during the five-week period, this reef,
sion was nearly offset by a rise of $3,233,000 in time e
t
posits. Combined net demand and time deposits on Octob~e
12 were $43,856,000 lower than on the corresponding d~
last year. These banks have practically liquidated their 1n~
debtedness at the Federal Reserve Bank, total borrowingso~o
October 12 amounting to only $40,000 as against $2,14.3,
on September 7, and $6,634,000 on October 14, 1931.
OONDITION STATISTICS OF MEMBER BANKS IN SELEOTED OITIES
(In thousands of dollars)
-------------------------------------------Sept. 7,
00t.12,
Oct.14,
United States securities owned ............ .
All other stocks, hond., and scourities owned.
Loans OD securities .. . ................ . .. .
All other lonns ......• .. ..... . ...........•
Totnllonns ...... . . ...............•.•.•••
Net demand deposita .•••.................
Time deposita ........ . ...............•.•.
Reserve with Federal Reserve Bank ... . ..••
Bills payable and redi.counts with Federal
RIlServo Bank .....•.•.•... . ..... . . . ...•
A cceptance
1032
$ 01,401
57,233
71,007
167,502
239,409
210,182
128,016
26,704
1081
$ 75,665
50,658
82,000
200,320
292,220
258,163
132,801
83,623
.0
1932
6,634
$ 82,693
3
55,8t7
72,6
163,102
235,719
223,736
124,7H
27,2
· .
A matena1 !Dcrease, seasona I'
In
2,14 3
re
~ atUthe•
Market
was reflected during September In ted
volume of bankers' acceptances exeeu the
by banks in this district and outstanding at the close of 1
'!lSI
month. The total amounted to $1,570,872, as ag 0 8
$869,655 on Aug?st 31, and $1,370,18~ on S~ptember onth
year ago. The major part of the expanSIon dunng the .m ent
was shown in the acceptances based on domestic sh1P~nd
and storage of goods, which rose from $740,000 at the
of August to $1,362,000 on the last day of September, d
Deposits of
Combined daily average net dema~d 8~e
Member BanTcs
time deposits of member banks J!1 bet.
Eleventh District during Septem of
which amounted to $600,331,000, reBected an increase
s
-----------------------------------------------~~----=---~--=-==--==-------------------------------------MONTHL Y BUSINESS REVIEW
6
-------------------------------------------------------------------------------------------------$3,169,000 over the previous month. The decline from a
Yeah ago amounted to $124,493,000, this being the smallest
i~c reduction that has been recorded since September,
31. The greater part of the month's increase was in the
demand deposits of country banks.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands oC dollars)
'!-
September
Abilene .. . ..... .
Austin . .... .... .
Beaumont ..•.•••
Corsienna .. .. •. .
0.11 ............ .
EI Paso ........ .
Fort Worth ... . . .
Galvoston . . .... .
Houston .. ..... .
Port Arthur ....•
Ro.well .... .... .
Son Antonio . .•• •
Sbreveport .... . .
Tcxarknnn· .... . .
Tuceon ........ ..
Waco .......... .
Wichitn Falls ...•
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands oC dollnrs)
-----------------------------------------------~~t..
No;:.
D
Jo~"
Feb"
1.1 0;'
!-prii:
May.
June.
July
Au'
Be g••
Pt.,
Combined Totnl
Reserve City Bonks
Country Bonks
Net demand Time Net demand Time Net demand Time
depo.its deposits deposits do posits deposits deposits
1031 .... .. 5508.850
487.314
483.070
1031 .... .. 474.935
1932 ..... . 468.172
1~32 .... .. 460.110
32
10 .... .. 461.557
10~~" "" 445.050
103 .... .. 434.865
I 2.. .. .. 422.594
032 .... .. 421.727
1032
400.254
1032::::: : 413.201
mil ... .....
....
$215.074
202.524
203.719
202.094
196.782
106.572
104.887
101.203
100.720
180.066
186.005
187.008
187.040
$242.731
2U.544
231.010
226.307
221,790
222.116
221.835
216.640
212.117
207.155
200.225
201.130
202.121
$129. 116
110.826
121.817
122.674
11 8.475
118.003
117.330
115.n2
115.372
115.634
IIM05
114.532
113.037
S266.119
254.770
252.060
248.538
246.373
246.004
230.722
228.401
222.748
215.439
212.502
$86.858
82.608
81.902
70.420
78.307
77.570
77.548
75.561
75.357
73.432
72.400
73.376
73.103
208.12~
211.170
1932
$ 4.107
13.318
12.241
2.568
128.037
12.314
43.004
17.311
104. 282
3.601
1.624
37.452
22.481
6.179
5.326
0.072
7.601
Percentage
September ehange over
1031
yenr
S 4.567
18,626
17.457
3.397
165.516
18.023
62.740
21.248
137.632
6.380
2.408
50.823
24.805
8.020
7.943
12.842
0.832
Percentnge
ehange over
month
August
1932
S 3.337
14.073
11.588
2.074
117.010
13.145
44.600
16.123
100.720
3.002
1.761
42.085
20.802
4.885
6.019
8.228
8.237
- 8.1
-28.5
-20. 0
-24.4
-22 . 6
-34.0
-31.6
-18 .5
-24 . 2
-42.2
-32 . 6
-37.4
- 0.7
-35 .4
-32.0
-22 .3
-22.7
+25.8
- 5 .4
5 .6
+23.8
9.4
- 6 .3
- 3 .8
+
+
+ 7.4
+
3.5
- 5.4
- 7.8
-11.0
8 .1
6.0
-19 .5
-21.2
+
+
- 7.7
TotnL . .. . .. $430.598
$582.258
-26 . 0
$419.288
+ 2.7
DiBtr;~r.cludes the figures oC two bonks in Texarkana. Arkaosas, located in the Eighth
Debits to
Savings
Deposits
Total charges to depositors' accounts at
banks in leading cities in this district
CCOunts
showed a small seasonal up-turn in Sepa .
tember and amounted to $430,598,000, as
OB~I~st $4,19,288,000 in the previous month, and $582,258,S In the corresponding month last year. The decline from
20p~ember a year ago amounted to 26.0 per cent, as against
~ per cent in August.
The amount of savings deposits on record
at 142 banks in this district showed little change during September. The total
was $13,9,890,650 at the close of the month, as compared With $139,760,996 on August 31, and $163,849,208
on the last day of September, 1931. The decrease from a
year ago . amounted to 14..6 per cent, as against 16.3 per
cent on August 31.
~ndividual
SAVINGS DEPOSITS
-----------------------------------------------------------------------------------------September
August
September
30. 1931
30. 1032
Number oC
rec:~f1:g
n.aumont .................
Dallna
IlJp .. .... ..............
li'ert'W~rtj,' .............•
Gnlvest
................
lIouot on .................
Pert A~~h;;; ...............
San At · ...............
8breve~~lo ...............
Waco
......... .......
Wichiia 'Falia .... ..........
AU etbers ... ::::::::::::::
~
392
4
4
112
84
3
380-
Number oC
savings
depositors
0.012
73.720
10.524
33.745
17.283
53.438
4.271
16.591
23.000
10,251
2.810
54.008
31. 1032
Amount oC
Number oC
Amount oC
Percentage e~nnge
deposits
depositors
depOSita
Bnvings deposits
$ 3.477.771
27.601.331
3.105.707
12.030.098
12.148.945
33.788.406
1.021.519
20.057.609
11.626.101
6.076.507
2.775.300
27.239.734
-14.6
- 9.0
+ 3.9
-13.7
-16.5
-10 . 0
- 5.7
savin~
o3\'inga
allvlnga
S 2.069.662
25.208.312
3.289.891
11.162.377
10,139.623
30.100.785
1.812.365
14.417.021
9.098.598
5.547.856
2.316.085
22.927.535
4,408
76.083
ID.400
34.049
17.007
65.670
4.688
21.707
25.639
10.323
3.313
56.800
ovor year In
Number oC
savings
depositors
0.016
73.885
10.524
33.846
17.167
53.511
4.208
16.710
23.041
10.367
2.020
54.251
~1.2
-14.0
- 8.7
-16.5
-16.0
Amount oC
savings
deposits
Percentnge ebnnge
over month in
savings deposita
$ 2.057.332
25.256.307
3.243,310
11.217.608
10.052.365
30.130.002
1.774.207
14.373.718
0.034.262
5.546,274
2.312.448
22.053.893
+
- .2
+1.4
- .5
+ .0
.1
- 2.1
+
-14.6
307.415
SI63.849.208
331.905
SI39.760.096
Tot.L ..............
$130.800.650
142
305.821
·Only 2 b.nks in Benumont. 6 in Dallas. 0 in Houston. 7 in Son Antonio. 2 in Wiehita Falls. and 74 in "all others" reported tbe number or B.vings depositors.
.4
.3
.6
0.0
+ .2
.1
+
+
+
.1
~
Prevailing rntes:
OCTOBER DISCOUNT RATES
--------------------------------------.-------.------,------.-------.------~-----Dnllns
EI Paso
Fort Wortb
Houston
Son Antonio
Waco
~~--------------------------~--- I-------I-------I-------I-------I----~~I-~~-tCr:nrged customers on prime eommeroial paper Buch as is now eligible ror
6-8
5-8
5-7
5-0
3*7
Ilate chlseount under thc Federal Reserve Act . . ........ ........................ .
6-8
5-6
541
ged
5-6
5-6
'i
!\ate
on loans to other banks secured by bills reccil'able .................•.
in"1 J.ans seeured by prime stock exchange or other eurrent eollnteral (not
o UDlng lonos placed ID otbor markets through eorrcapendent bonks):
!\ate eh
Ti~":'~~~':::::::::::: :::: :::::::::: ::: : : :::: ::::: ::::::::::::::::::::
!\ate nrged on commodity paper seeured by warehouse reoeipts, ete ...•..••...•••.
~t1elonns ............... .... ........... . .. . ....................... .
6
6
6-8
5-7
6-8
6-8
6-8
8
6-8
6-8
6-8
6-8
6-8
5-7
5-7
5-7
7-8
5*6
6-8
6-8
6-8
7-10
8
8
6-7
7
~
~Oltonseed
INDUSTRY
The operations of cottonseed oil mills in
roducts
both Texas and the United States eviSept
denced a large seasonal increase during
liall ember, and activities at the latter mills were substan193f greater than those in the corresponding month of
cOllt" On the other hand, the receipts of seed at Texas mills
a fu l~ed below those a year earlier, while crushings showed
seas r er gain. During the initial two months of the 1932-33
on the production of all cottonseed products at both
Texas and American mills was well above the output during
the same period of the previous season. Stocks of cottonseed held by all crushing establishments on September 30
were exc~ptionally hi~h, being with one exception the largest
of any hke date dunng the past decade. Inventories of all
products at both the State and Nation's mills were seasonally larger on September 30 than those a month earlier and
were also considerably above those held on the same'date
of 1931.
~----------------------------~~~==~~~~~~~~~=----------------------------------
6
MONTHL Y BUSINESS REVIEW
----------------------------------------------------------------~------------------------STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
TexllS
United Stntes
August 1 to September 30 Augu,t 1 to Sept.ombor 30
Tbi, ,eason La,t senson Tbi, ,en,on L•• t senson
Cottonseed rceei ved ilt mills
(ton') .. .. ........ . ........
Cottonseed crushed Itons) ... , ,
Cottonseod on b.nd Sept. 30
(ton') ... ...... .......... ..
Crude oil preduood (pound,) ...
Cake and meal produced (tons)
Hulls producod (tOilS) . .. . .... .
Lillters produced (running
boles) .... , ... .. ... . .......
Stocks on hand Septombcr 30:
Crude oil (pounds) ...... .....
Cake nnd menl (tons) .........
liull, (ton,) .................
Linters (running bales) ......••
333,248
288,176
210,774
83,4CU,481
135,592
84,204
33,408
26,033,055
68,323
76,2~3
63,671
488,037
241,368
1,08R,603
721,840
966,753
608,896
260,162
666,877
482,641
71,376,GOO 218,737,550 153,241,233
113,038
326,826
220,060
204,702
60,307
142,032
I
32,767
108,486
77,503
10,024,668
30,308
57,560
53,836
64,158,654
201,421
201,622
228,636
44,501,452
118,885
101,582
200,207
A further strong demand for textIles was
reflected during the past month in the domestic consumption of cotton. An increase appreciably larger than seasonal was shown as compared with the previous month, and for the first time since
last February consumption was greater than that in the
corresponding month of 1931. There were 491,655 bales of
cotton consumed in the United States during September, as
against 4,02,601 bales in August, and 464,335 bales in September a year ago. Consumption during the first two months
of the present season was slightly larger than that in the
same period last season. Stocks of cotton held on September
30 at consuming establishments were less than a month
earlier, but were again well above those a year ago.
Textile
Milling
Although some of the reporting textile mills in Texas
continued inactive during September, those mills that were
operating showed a further increase in activities. Both the
consumption of cotton and the production of cloth were
above the previous month, and the corresponding month of
1931. Orders for finished products on the books of reporting mills were above a year ago, but slightly less than ~.1.tuse
recorded a month earlier. Stocks of products held on September 30 were smaller than those on hand on August 31
or September 30, 1931.
Cotton.growing ,tates:
Cotton oon'umed ........•.•
On hnnd Sept. 30 inCon,uming establi,bments.
Publio storage nnd compresscs ........•..•.. ..
United States:
Cotton oon,umed ...........
On band Sopt. 30 inConsuming estahlishmenla.
Publio ,torage alld oompresses ................
September
1932
1031
407,066
377,531
AU~II,t
I to Septomber 30
Th18 scnson LIlSI season
746,136
710,206
832,288
464,335
511,671
7,540,477
401,656
6,059,281
804,256
September
Reoeipts ................ . .. ..
Exports ...... . ..............
Stooks, Septomber 30 .........
1032
206,854
83,724
....... .
-
-
September Au~ust 1 to S"£tember gO
1031
ThIS 'cason ast senson
228.U73
83,008
. .......
230,884
14~,250
558,813
234,430
105,061
530,431
-=
~
-
COTTON-GALVESTON STOCK STATEMENT
(Bales)
Sept. 30,
For Grent Britnin ....................................
For France .... . ........ . .. ......................... .
For other foreign ports ....... .............. . ..........
For OOD.<twi,o ports ...................................
In compresses and depots ...... . ...... ..... ............
Total. ....................... . .......... . .
Sept. 30,
--658,813
-
1032
4,000
3,500
20,500
600
630,313
-
1931
606
700
15,~~
613,437
530,437
..-&
~
-
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
September
Receipts .....................
Exports ......... . ... . .... . ..
Stocks, Septomber ao ... ......
1932
3S5,033
210,847
... .... .
September Augu,t I to September 30
1031
This ,enson Last 9cllSOn
437,693
228,614
........
470,214
390,762
1,151,623
484'~~l
310'806
802, ~
~
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORTS-(Dnlcs)
.-
1,087,286
m'm
777,858
7,060,280
Receipts .......... .... ... .. . .. ....................... 1,523,067
Exports: United Kingdom ..... .......... . . ...........
154, 172
Frnnco ............. .. ........ . ... . .. . . . ....
187,480
Hilly ... . .. ...... ..... ..... ...... . ... .......
Germany ..... ......... ............ .........
' ,
Othor Eurol>C . . ......... . .. .. . . ..... . . ... ...
148,073
Jaran ...... .. .... .. . . . •....••..•....•......
101,871
AI other countries .................. . ..... . . .
64,612
Tolal forei~n ports . . .. . ..................... 1,185,819
Stocks at all United totes ports Septomber 30 ..... ...... 3,637,266
880,366
6,208,408
The customary seasonal movements of
cotton to concentration points were reflected during the past month by the increased receipts at the ports of Houston and Galveston;
however, they were considerably smaller than a year ago.
The combined exports of cotton from both ports likewise
showed a large seasonal increase, but were smaller than
those in September, 1931. Despite this decline from a year
ago, shipments during the current season continued above
those in the 1931-32 season. Stocks of cotton held on September 30 at both ports were above those on hand a month
earlier or a year ago.
Cotton
Movements
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(nales)
August 1 to September gO
Thi. Scn80n Lo8t senson
COTTON CONSUMED AND ON HAND
(nales)
September
Total foreign exports of cotton from all United States
ports witnessed a large seasonal increase during SepteJlI'
ber, and were noticeably greater than those a year ago,
There were 733,665 bales of cotton shipped during the
month, as against 452,154 bales in August, and 588,192
bales in September, 1931. Exports during the first tWO
months of the current season were 54.2 per cent above th OS
in the like period of the preceding season. Shipments 0f
cotton to Great Britain and the Continent continued )liS'
terially above a year ago, while takings by the Orient
showed a perceptible decline.
1,2~~'~~~
28'072
61'042
142:256
07555
215'429
188'602
769'222
210'860
S, '
.--:::::?
~
SPOT COTTON PRICES-(Middling bnsis)
(Cents por pound)
September, 1032
High
Low
New york . ......... . ............. . ......
New Oricall8 ... . .. . ....... . .... . .........
Dallas . . ... . .. . ....... . ............. . ...
liouslon ... . ......................... ...
Galveston . . .............................
0.00
8.88
8.40
8.80
8.80
6.80
6.61
6.20
0.65
6.66
---Oot. 15,
1032
6.50
6.45
5.95
6.30
6~
h'S diS
Total production of crude oil in t . 1 g to
trict during September, amo untm 11 in
29,191,500 barrels, was on a scale somewhat higher thpailY
either the previous month or the same month last year. \'bich
average yield reflected an increase of 4,7,823 barrels, ' !U
J1le
was largely attributable to the shorter month. The tel of
of field operations receded somewhat from the high e1/
Petroleum
------------------------------------~~~====~~~~~==~~~==~==~------------------------------------
MONTHLY BUSINESS REVIEW
7
~---------------------------------------------------------------------------------------------------
~he previous month. Of the
752 new wells completed during
?tember, 612 were producers with an initial flush output
0 3,662,063 barrels. In August there were 1,062 wells com·
p.1
e1ted, of which 861 were successful and had an initial
Yle d of 5,560,240 barrels.
SEPTEMBER DRILLING RESULTS
North Texas . . .......... ...
Celltral Weet Texas .. .. .. ...
Ellst Centrol Texas .........
South Texas ...... ....... ..
Texus Coastal . ...... .......
713
8
31
501
7
14
September totale, district .. . .
August tot.ls, distriet . ... ...
Effective October 15, a number of the major companies
announced an advance in the posted schedule of crude
petrobleum prices. The increases varied from $.09 to $.12
Per arreI.
Pro·
duoers
37
23
462
43
26
Total Texas . ......
New Mexico . ..............
North Louieiana .. ..........
While most of the increase in daily production, as com·
pa~ed with August, occurred in East Texas, there was also
a:l~able gain in the Gulf Coast region. The total daily out·
P t In Texas amounted to 912,000 barrels during September,
as a .
. sgaInst 864<,500 barrels in August, and 886,898 barrels
Sn eptember a year ago. Daily yield in New Mexico during
iteptember averaged 31,850 barrels, and in North Louisiana
amounted to 29,200 barrels.
Com.
pletiune
82
42
475
71
43
752
1,062
612
861
012,000
31,850
20,200
+560,500
- 50,450
500
+47,500
600
923
Total Dietriot. . ...... 20,101,500
073,050
+500,460
+47,823
................
--
'2
115
1
15
3,645,490
14,719
1.854
9
17
131
184
3,662.063
5,560,240
3
2
7
Oct. IS,
1932
$1.10
1.12
Oet.13,
1031
$ .66·
.70
(Oil statistics compiled by The Oil Weekly, Houaton, TeXll!l)
August, 1032
Total
Daily avg.
-353,400
- 8,300
-366,000
- 5,600
+930,300
+44,100
+304,600
+17,250
- 53,100
+
50
liew M Total Texna.. ....... 27,300,000
liorth t:,'~0..
055,500
ulelana.... . .. .. • . . . .
876,000
Initial
prcxJuction
8,144
1,847
3,503,000
17,349
25,060
Toxna cOllStol (40 gr. and above) ..................... ..
North Texas and North Louisiana (40 gr. and above) •. ..•
·Price paid ror oil, 35 gr. aod above.
OIL PRODUCTION- (Bamls)
~~I~aT~v:::··············· · ·
Foil·
urcs
44
18
13
25
15
CRUDE OIL PRICES
-----------------------------------------------Inorease or deorel\l!e over
September, 1032
Total
Daily nvg.
2,883,000
06,100
103,300
East C t t Texna .. ........ . 5,7110,000
427,800
TexllS en rnl TexllS ......... .. 12,834,000
140,150
South T~;stal. ............. . . 4,204,500
l1li ................ .
1,639,500
54,650
GIlS
wells
1
1
Building
After having turned upward in August,
the volume of construction permits issued
at principal centers in this district showed a reduction and
amounted to $808,014 during September. This fio-ure com.
pares with a total valuation of $1,014,495 in AuO"'ust and
$2,528,059 in the corresponding month last year. "'Buiiding
permits issued during the first nine months of the current
year aggregated $14,487,341, as against $31,661,941 in the
like period a year ago.
+
BUILDING PERMITS
Sept., 1032
Sept., 1931
No. Valuation No.
:----- -- - - - - ~marill a .......
iiustin .
enUm
C "
oarpus Christl. .
hi::::: :
",nlina. .... ... .
Ii' Pnaa
ertw~;th·. :::
Onh'cst
:
oa ......
oart Ar~h'li;" :
""n An toniQ.·.: :
ShravaPO rt ... "
Waco
Wiehiia
"F~li~:: :
~O"sta
tn1.
~.....
Valuation
26 $ 20.702
100
102,353
92
15,244
29
11,129
243
191, 231
54
34,135
157
84,628
184
27,107
100
174,737
26
4,792
184
62,054
132
32,172
28
30,407
19
11,323
35 $ 248,769
02
88,196
33.425
110
23,500
35
369
368,377
102
47,460
175
386,604
117,384
124
307
846,723
58
17,270
234
227,501
145
55,123
26
61,709
8
5,832
1,464 $ 808.014
1,820 52,528,050
-- ---- --- -----
Percantage ahange
valuation over
year
-91.7
+16 .1
-54.4
-52. 8
-48 .1
-28. 1
- 78.1
- 76.0
-79.4
-72.3
-72. 7
-41.6
-41.0
+94.2
------ 680
August, 1932
No.
Valuation
14 $
83
85
36
335
44
117
239
208
39
144
136
29
18
34,340
72.654
10,096
14,098
255,390
03,001
78,480
36,562
183,480
8,~40
122.643
65.577
26,738
3,478
Paraentoga ohonge
valuation over
month
+
+
-
39.7
40.9
22 . 6
21.1
25.1
63 .3
7.8
25.9
4.8
- 42 .6
- 49.4
- 50.9
+ 36.2
+225 .6
-
-- ----- ------ 20 .4
1,527 $1,014,405
Nine month.
Percentage change
1932
1931
valuation over
period
No.
Valuation
No.
Valuation
201 $ 270,449
426 $ 2,572,058
- 80.5
821
4,080.421
860
1,751,100
+184.4
769
258,265
032
073,081
- 73.5
298
127,010
452
440,320
- 71.2
2,480
2,064,648 2,007
3,802,082
- 45 .7
287,707
363
665
880,251
- 67 .6
1,171
1,147,803 1,700
3,842.827
- 70.1
1,267
440,205 1,1 23
1,014,226
- 77 .0
1,850
2,316,826 2,885
9,672,817
- 76 .0
336
77,004
545
872,308
- 91.2
1,625
1,383.257 2,055
2,261.055
- 38.8
1,096
351.168 1,339
817,514
- 57.0
279
206,358
243
1,711,865
- 82.7
145
486,220
00
130,937
+247 .5
12,701 $14,487,341 16, 23 1 $ 31.661,041
- 542
-
~
Despite an increase of 31.4, per cent in
'l'exa.
the production of Portland cement in
a larS dt nng September, shipments from Texas mills showed
rOse e y seasonal reduction of 18.40 per cent. Total output
Septe rbm 325,000 barrels in ~ugust to 427,000 barrels in
rn er, the latter figure bemg 31.7 per cent less than
r
that of the same month a year ago. The volume of ship.
ments decreased to 315,000 barrels, as compared with
386,000 barrels in August, and 688,000 barrels in September last year. Stocks on hand September 30 aggregated
717,000 barrels, being 18.5 per cent larger than on August
31, and 33.0 per cent above the level of a year ago.
'"'" ~============================================~
____
PRODUCTION, SIDPMENTS, AND STOCKS OF PORTLAND CEMENT
(In thousands or barrala)
--------------------------~----------------~~~~~~~~------% change rrom Jan. 1 through
~~~~~r: r~! 1'~na mill~ . .. .. ......................................................................... .
toOks at end ~ ;~:h"!~I~.;~u '';'iliS: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :
Sept.
1932
427
315
717
AU~II.t
lY32
+31.4
-18 4
+18.5
S, pt.
1031
-31.7
-54.2
+33.0
Sapt. 30,
1032
2,892
2,900
% chango
Ir-om year
--40 .1
--43.1
~------------------------------~~~==~~-------------------------------------------------------
8
MONTHLY BUSINESS REVIEW
--------------------------------------------------------------------------------------------------SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board. October 24. 1932)
Industrial activity and shipments of commodities by rail
increased from August to September by considerably more
than the usual seasonal amount. There was also a more than
seasonal increase in the volume of factory employment and
payrolls. The general level of prices, after advancing for
three months, showed a decline beginning in the early part
of September.
PRODUCTION AND EMPLOYMENT
Volume of industrial production, as measured by the
Board's seasonally adjusted index, based on the 1923-1925
average, increased from a low point of 58 in July to 60 in
August and 66 in September. The advance in September
reflected chiefly large increases in activity at textile mills,
shoe factories, meat packing establishments, and coal mines.
In the steel industry, where activity had shown none of the
usual seasonal increase in August, operations expanded considerably during September and the first three weeks of
October to about 20 per cent of capacity. Daily average output of automobiles and lumber in September showed little
change from recent low levels. Factory employment increased from 58.8 pel' cent of the 1923-1925 average in
August to 60.3 per cent in September, according to the
Board's seasonally adjusted index. Considerable increaset>
were reported in the cotton, woolen, silk, hosiery, and clothing industries, and smaller increases at car-building shops,
foundries, cement mills, and furniture factories; in the automobile, tire, and electrical machinery industries, employment declined. During the three months ending with September, value of building contracts awarded, as reported
by the F. W. Dodge Corporation, was about the same as in
the preceding three months, although awards are usually
smaller in the third quarter. In the first half of October,
the daily average of contracts declined somewhat.
DISTRIBUTION
Volume of freight-car loadings increased by considerably more than the usual seasonal amount in September,
reflecting chiefly larger shipments of coal and miscellaneous
freight. Department store sales increased from the low level
of August by somewhat more than the usual seasonal percentage.
WHOLESALE PRICES
Wholesale commodity prices, as measured by the J1l0~tr
ly index of the Bureau of Labor Statistics, showed htt e
change from August to September. During August and earla
September there was a general advance in prices follo we
by a decline which continued through the first half of Oc~o;
ber, when the average was 2 per cent below the high .poln
f
in early September and 1 per cent above the low POInt 0
early summer_ Substantial decreases occurred after the b~'
ginning of September in the prices of many domestic a~rJ:
cultural commodities, including cotton, grains, and hie
stock, and also in prices of gasoline, non-ferrous meta
and imported raw materials, while prices of wool, wors~.
yarns, coal, and lumber increased somewhat during t IS
period.
d
BANK CREDIT
During September and the first three weeks of October
there were further additions to the reserve funds of meJlli
ber banks, arising from increases in the country's stock 0
monetary gold, from an unseasonal return flow of cur ren: Y
;
and from issues of additional national bank notes. MeIll ee
bank indebtedness to the reserve banks declined by mO~e
than $100,000,000 from September 7 to October 19, and t .
reserve balances increased by $180,000,000. During Sep~~m
r
ber and the first two weeks of October reporting m~nJ1l~.
banks in leading cities showed a further growth in IllVe5j.
ment holdings, largely of United States Government setre.
ties, but to some extent of other investments. Loans 0 tl
porting banks declined further in September. In the ear ~
part of October, loans at banks in New York City shoW~t
an increase. There was considerable growth in Govern~e e
deposits and in bankers' balances during the period;
t
deposits also increased. Money rates in the open mar r
be ~
declined to lower levels during the first half of Octo
the rate on prime commercial paper being reduced fro m
on
range of 2-2V,1 to a range of 1%-2 per cent, and the ra~~ of
90-day bankers' acceptances from % of 1 per cent to :1/ 2 01
1 per cent. Rates for call loans on stock exchange coll ater
declined from 2 per cent to 1 per cent.
U:
@FedFRASER