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OF THE FEDERAL RESERVE BANK OF DALLAS Ch . CHAS. C. HALL-W. J. C. C. WALSH GlrmGn Gnd FederGI Reserve Agent ~ .., (Compiled February 15, 1933) 9E )C )E ~IU:rne 18, No.1 )E Dallas, Texas, March 1, 1933 ,r EVA~~ m ~:''''"t ~:,,,' ''',~'' A9':J This COpy is released for publication in after noon papers March 1 DISTRICT SUMMARY E"II'IIIIIIIUIIII : 1111111111111111111111.,1111111111111111111111111111111111111111111111111111 11I1I11I1I11Itl11I1I11111IU~ THE SITUATION AT A GLANCE Elovonth Fodoral Rosorvo Distriot ____ • : : ~ ::---.. January Cbange from I!a~k dobits t . " 1 _ _ 33_ _ I_ _ oc_m _r_ _ 10_ D_ c _be Dcities) . 0 IndIVIdual accounts (at 17 n:artment ~~~o ~~i " ' "'' '' '''''' '' '' '' '' $468.867,000 - 12 .0% crvo bank I os.. .. ........ - 56 .2% nof month. onns to momber bankS ~t ' end ' . 1!~~I.vO bank '~~tio ~i' ond of'm" .. .. .. .. .. .. .. S 4,176,847 - 10.7% onth....... . .. 48 .3% + .3 points C ng permIt v I t' ommorolal fnil a u~a Ion at larger oenters . . . . $ 710,736 Commor ' I . ures number) + 30.7~ Oil r Ola fadures lIabiliti 8 0 : ~on (barres) os .. .... ...... .. 1,608,202 + 3.0Il' :: .... .. .............. . 24,704,700 3.7'10 :: r .. ·.......... ° § • 1111111111111 11 1111 A for agriculture and livestock. Land preparation is well advanced and due to the recent freezes the soil is in excellent condition for spring planting. While a fair to good season now obtains in most sections of the district, there are a few areas badly in need of additional moisture. Small grains improved in January, but were damaged to some extent by the dust storms late in January and the low temperatures in February. Vegetable crops also suffered considerable damage. Ranges and livestock continue in fair to good condition. While market prices for livestock have been weak reports indicate that range trading in some areas is becom: ing more active, with prices fiI'm to stronger. '" 1111 1111111111111111 Illfllllllllllllllllllllllllllllllllllllllllllllllllll1IIIIIIIIIIIIIIIIIIIIIIIIf : COtnparativ I POl'tant f e y I.ow b usiness mortality rate was an imF'ederal Rature of the business situation in the Eleventh Ures whi h S rve District during Janu ary. Commercial failh trary to ~h ad declined in November and December conJ.anual'Y b e usual seasonal tendency increased somewhat in habilities ~ w~re substantially lower in both number and two Preced' an lU the corresponding month of either of the 13 lUg years. r usiness at b th h egular d ' 0 w olesale and retail was somewhat irstores in 1~~lUg t~l~ past month. The sales of department Cent as Co gel' CItIes reflected a seasonal decline of 56 per \vere 18 tnpared with the previous month and while they COtnparis per cent b eI ow J anuary I ast year, ' the year;to-year t. on rlbution f Was more favorable than in December. The dis~ble unev: tnerchandise at wholesale evidenced considertng of de;:nes s. In some lines there was a seasonal widen~ession Th and, but in other lines there was a further redO hold ordere still is a general disposition among retailers etnand anr s to the lowest level consistent with consumer ~l; itnprove as su.ch a policy necessitates frequent reorders, olesale. C~~nt I.n consumer buying is quickly reflected at tnb er. ectIOns were seasonally smaller than in De- c: Weath er condit' . IOns In January were generally favorable Federal Reserve Bank loans to member banks reflected a further decline, the total on February 15 being $4,,024,000, as compared with $4,369,000 a month earlier, and $14.,168,000 on the corresponding date last year. The loans and deposits of member banks in selected cities were lower on February 8 than on January 12, but their investments were increased slightly during the same period. The combined net demand and time deposits of member banks in this district showed only a small recession in January, the daily average for the month, which amounted to, $611,062,000, being $1,966,000 less than in December, and $53,892,000 below January a year ago. The latter comparison was the most favorable recorded in more than two years. After showing an improvement in December, construction activity in this district turned downward in January, but was still above the low level of November. The valuation of building permits issued at principal cities amounted to $719,736 for the month, which was 36 pel' cent below December, and 57 per cent less than in January, 1932. While the shipments of cement fr~m Texas mills reflected a large S increase over both the prevIOU month and the same month last year, production showed a decline from both comparative periods. BUSINESS 117 'l',.holesale a4e . BUSIness at wholesale in the Eleventh POl' . District during January reflected a mixed son hng lines of tr~nd. There were decreases in three re~ al tenden' , whIch two were contrary to the usual seaent. Sales cY nd two lines showed a noticeable improveo ry goods and farm implements reflected id seasonal gains, though they contin1!ed. to . be appreciably below the level of a year ago. The dIstrIbutIon of groceries hardware, and drugs was also smaller than in January, 1932: Unfavorable weather has retarded business to some extent in recent weeks. Dealers are still very cautious in making commitments and almost no orders are being placed before This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) -------------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW -------------------------------------------------------------------------------------------------------2 actual need for the merchandise has become evident. Total collections in January showed material seasonal decreases in the case of all lines except drugs. Renewed activity in the business of wholesale dry goods firms was visible following the mid-season lull in December. Although the increase of 44.2 per cent in distribution during January was chiefly due to seasonal influences, the comparison with a year ago was appreciably better than in the previous month. The dollar volume of sales during the month reflected a decrease of 8.0 per cent from that ·of January, 1932, while in December there was a corresponding decline of 36.2 per cent. Inventories were increased by less than the usual amount at this season. A decline of 30.7 per cent was shown in the volume of collections. Contrary to the usual trend at this season, the demand for drugs at wholesale during January reflected a falling off of 12.3 per cent. The decrease was attributable in part, however, to the substantial non-seasonal improvement which was witnessed in the previous month. Total sales were 8.8 per cent below the volume of January a year ago. Both merchants and j obbers are maintaining their stocks at minimum levels. Collections during the month were 9.8 per cent larger than in December. While there was an increase of 29.7 per cent in the sales of farm implements at wholesale during January, this gain was smaller than seasonal and the comparison with a year ago was less favorable than in December. The net decrease as compared with January, 1932, amounted to 11.1 per cent. There was a sizable decline in collections as compared with December. The demand for hardware in wholesale channels of distribution duri~g January was somewhat spotty. While there were more firms reporting increases over December than showing declines, total sales reflected a reduction of 4.1 per cent, and there was a decline of 1.1 per cent as compared with January last year. The volume of collections during the month was seasonally smaller than in December. A contrary to seasonal reduction of 7.5 per cent occurred in the distribution of groceries at wholesale during January, but sales were only 2.9 per cent less than the volume of the same month a year ago. In certain sections of the district business improved somewhat. Stocks on hand declined slightly during the month. There was a seasonal drop of 14.5 per cent in collections. ~ : : :: : : Not Sales January, 1033 oompared with Jan.. Dco.. 1032 1032 Groceries ............ - 2.0 - 7.5 Stooks January, 1033 compared with Jan., Doc.. 1032 1032 - 10 .7 - 1.7 ' : rl1J~i~o.~~~~.:.::: ~188i .:8t ~~1:20 ~~135~:.·lX :++2:.:~0 .:3r Drugs ....... ..... .. . Ratio of oo\lcotionB during J.n. to aocounts ~od notes outstanding on Dco. 31 60 .0 i : : : ~ : ~:, :1 ~1.1111.1111111111.111111'11111.11111111.1.111111111111"111111111'.111111111.'11111111111111111111111111111IIIIIIIIIIIIII'C The business of department stores durt~ January in principal cities of the E ~ enth Federal Reserve District witn esse · . ~ a decline somewhat greater than the average receSSIon 'II that month; and although sales continued below those \. the corresponding month of the previous year, the percell h age decline was much smaller than in the previous rnont~ The dollar volume of sales was 56.2 per cent less than 2 December, and 17.8 per cent below those in January, 19~~ . The seasonally adjusted index of department store S8.M declined from 61.8 in December to 53.7 in January. u8 though the higher-than-usual temperatures during Jan ds had a retarding influence on the demand for winter gOO b~ the clearance "sales" were stimulated somewhat by the sU normal weather in the first half of February. Stocks of merchandise held on January 31 were 4 ped cent smaller than the low volume held a month earlier 20.3 per cent below those held at the end of January, te Despite a further recession in sales of merchandise, the rass of stock turnover during the initial month of 193,3 ~e. above that a year ago, which was due to a correspondmg duction in inventories. Collections during January evidenced a seasonal dec1j~~: and continued below those in the like month a yea,r 8 all The ratio of January collections to accounts outstandm~ ill January 1 was 30.4 per cent as against 32.9 per cen December, and 31.3 per cent in January, 1932. """~ " IIJlII I Retail ' Trade rr i;:2. ... .. . r_- - -: :~:'='=:::. . . '. "'. . . . '. "'. . '. . . '. . . '. "'. . . '. . '::~;~'~~'~;;::~;';;:::= ::~= "'~:'~~= "'' '=. . '.:~5;,6I~Ci2.s8tr January. 1033. compared with January, 1932..................... .............. . January. 1933. compared with Deoember. 1032 . .. .. ........ . . ,...... .......... ... . -20.1 -54.3 -21.6 -62.3 Credit sales (pcrocntage): JJanuary. 11 933 compared w!tthh JDanuary. 1032.2... ....... . . .. .. ............ . ...... 033' nnuary. . compared WI coomber. 103 .. . . .. . . .. . . .. . . .. . .. . .. .. .. .. .. . . . Stooks (peroentage): January. 1033. compared with.January.l032.... ....................... ......... January. 1033. oomparedwith December. 1032 ................................... § Stock turnover (rate): Rate of stock turnover In January. 1032.............. .. ......................... :: Rate of stook turnovorin January. 1933.. ............ ................. .......... :: Ratio of January collections to acoounts receivable outstanding January 1, 1033.......... E Indexes of department store snIna: § Unadjusted January. 1938.... .. ...................................... .. ....... :: Adjusted January. 1033....................................................... :; Indoxes of department store stooks: § Unadjusted January. 10S3......................... ............................ :: AdjuatedJanuary.l033.. .. ...................... ........ .......... ........ . .. § · Subjcot to ohange. -23.1 -53.1 E :: :: :; :: - 12 .5 -57.8 - 20.1 - 51.4 -25 .2 -62.2 -14. 0 - 53.8 -22.7 -48 8 .. - 10 .3 - 54.5 -16.9 -5 .1 -25. 7 +1.1 -17. 0 - 6 .8 - 10 .2 -3.2 .21 .20 28. 0 .16 .17 26.7 .20 .24 34.4 38.3 .10 .20 31.4 42 . 1 40.0 48. 0 64.0 52 .4 58 .0 42.0* 46 .2* 38.4 44.1 51. 1 50.4 42.0 48.8 82.2* 35.0* _21.0 -64.4 § While both the number and liabilities of Failures defaulting firms in this district during January were somewhat in excess of those in the previous month, they showed a substantial betterment as compared with the opening month in 1932. According to the report of R. G. Dun & Co., there were 98 commercial i : _20.3 : 40: _. : .20 .21' 4 i 80.: 45. 1' i 53.7' : 1 i : i 42. 2' 48 .5' : .i Iflllllllllll'" :.,1111",1111111"""'11.,1,,111"1""111111."""11""11111111",1111",11""""""""'1111111111.""""'1, •• ,11111"111, •• ,11""',1 ••• ,1111,."., •••••• ,1, ••••• ,11, ••• ,111111111,.,11, •• ,1111,.,111., •••• ,1, ••••• ".,.,11111111 Cammercial :1•• - 15 .1 - 55 .3 aO d failures during the month, as against 75 in Decern~:i 202, 178 in January a year ago. Liabilities totaled $1, I' Blld as compared with $1,643,815 in the preceding rnont~e iJI' $4~051,626 in the same month last year. The avera siJIC6 debtedness of insolvent firms was the lowest reported March. (I I r ---------------~~~~~~~~-------------_____________________~M~O~N~T=H=L~Y~B~U~S=IN~E=S=S~R=E=V~I=E~W~__________________~3 AGRICULTURE Crop Conditions The mild and generally fair weather prevailing over much of the district during and e January was beneficial to winter crops work nA~lhd the farmers to make rapid progress with field areas' 't .t ough land preparation has been delayed in some it is ,lIS well in line with a year ago and in some sections than 0re advanced. Rainfall over the district was lighter of S \ average, but practically all sections except portions New Mt . and Northwest Texas and portions of Southern The d .exlCO have a fair to good surface and subsoil season. tiona Ine~ areas are very much in need of moisture, and addiF'eb rams would be beneficial in many other sections. The ru left it~y freezes pulverized the soil and in most sections m excellent condition for spring planting. Small . . Janua grams m most areas made good growth during Texas ry, ~ut th7 crop in the upper High Plains section of frorn n portlOns of New Mexico suffered considerably both he dust storms late in the month. Further damage to the se~ ea} and o~ts over most of the district resulted from cover tere re~zes m February, as there was insufficient snow the full prOVIde protection. While it is too early to estimate voluntee;xten~ of the damage, the greatest injury was to the age. A g!ams of which there is a larger than usual acreprovingPenod of Warm weather will do much toward improspects. The dall1ag freez es, W h'ICh extended to the coast, did considerable dall1ag: !~ v~geta~le crops in all South Texas areas. The was a t lIght m the case of the hardier crops, but there beans t ota loss of some of the tender vegetables. Snap turnips OInatoes, cucumbers, spinach, broccoli, squash, and acreage W~re the hardest hit. In most cases, however, the be dela "dIlle replanted, and the harvesting period will acreag/e. he blooms on most of the State's strawberry age, but ';h~e kil.led. Citrus fruits suffered only slight damwere in' re .wIll be some loss. Peaches, pears, and plums that the Jdred m v:arying degrees, but late reports indicate Which h am ge WIll not be extensive. Vegetable movements, the freezave een slow this year, were further reduced after e. Livestock Weather and moisture conditions were ranges in t' . ~enerally favorable for livestock and COUnties . ~ dlstnct during January. While some of the are in ne~~ o~t~west Te~as an~ portions of South Tex~s lUre in oth of la.m, there IS a faIr to good supply of mOlSPlemental er Se?tlOns. As grain pastures supplied little supoVer Inuch g~azmg during the month, feeding was general 'vere maint: N o~thwest Texas and New Mexico. Livesto?k zard whi h Ined In average flesh. However, the severe bhzof F'ebruc swept over the district during the second week Very hard ry re~arded growth of range vegetation and was able shrinkon lIvestock. While livestock suffered considerPOrts indo age and some losses were sustained, yet late reTh lCate that losses were comparatively light. a e Depart ~hY 1 conditioment of Agriculture reported that the Februat a Inonth n of. ranges in Texas showed no change from ~ear ago d earher. Cattle ranges were 3 points above a . he Condit~n sheep and goat ranges were 2 points higher. Illg Janua Ion of cattle and sheep remained unchanged dur~pectively r~. hnd on February 1 were 2 and 1 points, reIOn of g' Ig er than a year ago The February 1 condiPo'Ints bett W I ' above that on January I, and 2 Oats has pomt . er t an on February 1, 1932. In New Mexico the condition of ranges and livestock declined 1 point. The condition of ranges improved 5 points in Arizona and that of livestock was unchanged from a month earlier. The report of the Department of Agriculture on the number and value of livestock on farms as of January 1, 1933 reflected a further increase in the number of cattle, swine: and sheep on farms, but a further decline in the number of horses and mules. Livestock values continued their downward trend in 1932 and at the close of the year were at very low levels. The movements of cattle and calves to market were in smaller v~lume than a year ago, but those of hogs and sheep were slIghtly larger. Livestock on Farms :h ~1I11I1111f11111111111111111111111"'1I11I11I11I111I1I11I11I11I1I1I111I11I1I11I1I11I 111111111111111111111111111.111111.111- th ::.1 . i b :~:;B~ :t~~t~;i~~~F~i~~1~ I Milk cows".. . .. . 1,301 1,312 20.00 20.00 All oattlo.. .... .. 6,405 6,127 13.40 17.30 Swine.. .. .. .. .. . 2,033 1,767 3.40 6.00 Shoop.......... . 7,644 7,212 2.50 2.00 Louisian. 56.00 189 03.00 180 MulO8 .... ...... . 106 32 .00 38.00 104 Hors08 ......... . 260 21.00 30.00 270 Milk eows" . . ... . 13 . 10 18.20 740 784 All eattlo ....... . 4.10 670 6.50 672 Swine ...... .... . 2.00 140 2.70 147 Shoop .......... . Now Mexioo MulO8...... .... . 21 22 37.00 30.00 Hors08.......... 125 130 26.00 23.00 Milk cows".. .... 71 70 25.00 37.00 All o.ttle........ 1,167 1,144 15.20 21.30 Swino...... ..... 78 74 3.00 5 .70 Shoop........ . .. 2,820 3,002 2.30 2.30 "Two ycors old and over being kept Cor milk oowS. SOUROE: United States Department oC Agrioulture. 27,820 86,916 6,093 18,778 38,048 IOS.007 10,602 20,915 10,012 3,344 5,670 10,280 2,742 288 11,007 4,028 7,800 13,468 4,414 878 772 3,2OS 1,775 17,740 302 6,443 858 2,000 2,500 24,367 422 6,OOS Slllrlll"I'IIIIII'III'II'I"III'I'IIIII'IIIIIIIIIII'11111.""1'1.11111,11'.11.1 •• 111111111111111""11" •• 11'1"I""III~ Receipts of sheep and cattle at the Fort Worth market during January reflected a substantial gain over the previous month but were materially smaller than in January, 1932. The arrivals of hogs were larger than in either comparative period. While the receipts of calves were below those in the previous month, they were larger than in the same month last year. Movements and Prices ~ltlIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1111111111111111111111111111'"II"1I 1111111111111111.1111111111111.11111111111.111": January Cnttlo .. .. ...... . C.lv08 ......... . Hogs ........... . Shoop .... .. .. ·· . 1033 28,711 16,002 25,208 50,886 January 1032 40,452 14,045 24,322 75,026 Ohange over Deoember Changeover year 1032 month -)1,741 23,075 + 4,736 + 2,047 + 886 -24,140 17,150 15,803 31,712 - 1,058 + 0,4OS +10,174 ~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 11111111111111111111111111111111111111 .... : § : : : : § COMPARATIVE TOP LIVESTOCK PRICES (Dollars pcr hundredweight) January January : Doocmber : : : 1,"'~ i , ,i , ,:i, i, , i , , 'm"'m" '.J!' ' ', J!, , , Jl' , J MONTHLY BUSINESS REVIEW 4 The market for all classes of cattle during the past month has been very quiet and the trend of prices has been downward. The demand for supplies has been narrow during most of the period. Hog prices fluctuated within narrow limits during January, but were unevenly higher during the first half of February. During the second week a top price of $3.60 was recorded, or $.50 higher than the January close. On February 15, however, prices had declined to $3.35. The demand for sheep and lambs has improved some· what and prices have been firm to higher. FINANCE Contrary to the usual seasonal trend, member bank borrowings at the Federal Reserve Bank have shown an almost steady decline since the first of the year. These loans, which stood at $5,203,000 on December 31, 1932, had declined to $4,,369,000 on January 15, and then fluctuated within narrow limits during the succeeding thirtyone-day period. The total on February 15 amounted to $4,024,000, as compared with $14,168,000 on the same date in 1932. These funds are being used almost entirely by country banks, as borrowings of reserve city banks continued at a nominal amount. There were 122 banks borrowing at the Federal Reserve Bank at the middle of February, as compared with 120 banks on January 15, and 130 banks on February 15, 1932. Bills bought in the open market showed a decline of $14,000 during the month. Investments in United States securities were increased $3,117,000 between January 15 and February 15 and on the latter date were $18,137,000 larger than a year ago. The reserve deposits of member banks amounted to $50,817,000 on February 15, which was $4,134,000 larger than a month earlier, and $956,000 greater than on that date last year. Reflecting the return flow of currency from circulation, Federal reserve notes in actual circulation amounted to $35,842,000 on February 15, as compared to $37,515,000 on January 15. The total, however, was $5,993,000 less than a year ago. Operations of the Federal Reserve Bank :JIIIII.IIIIIIIII.I.IIIIIIIIIIIIIIIIII.III'IIIIIIIIIII.11,.,.,11111111111.,11.1,,111111'111111'1111111'1 ••••• 1111 •• 11111111: ~ : CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) ••:§ :§ change as compared with both a month ago and last year. Their borrowings from the Federal Reserve Bank amounted to only $20,000 on February 8 as compared with $5,54.8,000 on February 10, 1932. ~111111111111111111111111111t111111111111111 .. 11J .. 11I111I1I .. lllltllIlIlIlI .. 1I1IIIIIIIIIIIIIIIIIIIIIIIIItll'''II,,''"II~ E : g CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thousands of dollars) United States seourltles owned. . . . . . . . .. . . . All other stooks, bonds, and securities owned. Loans on seourities....................... All other loans ...............'............ Total loans . . . .. .. . .. .. . .. .. .. .. .. .. . . .. . ~.et dedman~ deposita. . . . . . . .. .. .. . .. .. .. . Ime eposlta................. . .......... Reserve with Federal Reserve Bank . . . . . . . . Bills payable and redisoounts with Federnl Reserve Bank............. .. ........... Feb. 8, 1083 S 95,011 53,700 08,284 152,002 220,346 220,203 130,230 28,618 Feb. 10, 1932 S 80,014 00,722 80,580 193,200 273,888 244,667 130,000 30,366 Jan. 11, 1083 $ 02,322 56,150 00,725 157,014 226,730 221,246 130,821 27,805 20 5,548 None :: illlllllllllllllllllllllll.II.IIIIIIII'.,I.,III •• 11111 •• 11111111, •••••• ,.1, ••• 11111111111 ••••• ,1,11111,11,111IIIIfl,.II ••• t": Debits to Individual Accounts There was a larger than seasonal decrease in the volume of debits to depositors' a~ counts during January at banks in princlpal cities in the Eleventh Federal Reserve District. These charges totaled $468,867,000, reflecting a decline of 12.0 per cent from the previous month and a reduction of 21.4 per cent as compared with January, 1932. While the comparison with a year ago was less favorable than in either November or December, the decline shown was with one exception the smallest recorded in the twelV months preceding. Increases over December were reporte at six cities. a ~tlllt'I'IIIIIIIIII'IIIIIIII'IIIIIIIIIIIII'IIIII'I'I'1 tlllt.IIIIII,.IIIIII.IIIII ••• I.,IIIIIIIIIIIIIIII.II.I.1lllllfllllll'e Total cash reserves ............ . . .. .... . . . Discounta for member banks ... . ..... . .•. . . Other bills discounted .. . . . . . . .. .... . .• .. .. Bills bought in the open market . . .. . ...... . United States seourities owned ............ . Other iuvestmellta . . . . .. ...... . ... . ...... . Total earning assets . . . .. ..... ........... . Member bank reserve deposits ... ...... . . . . Federal reserve notes in notual oiroulation .. . Feb.15, 1933 $45,081 ~J024 !'Ilona 842 48,002 5 52,873 50,817 35,842 Feb. 15, 1932 $55,020 14,168 1 4,478 20,865 5 48,517 40,861 41,885 Jan.15, 1033 $42,983 4,309 None 856 44,885 5 50,115 46,688 37,515 5 .......... 11111 .. 1111111111 .. 111111111.1111111111 ... 111 .. 111111111 ..... 11111 .. 11111 ... IU .. 'I1I1I1I .. IIIIIIIIIIIIII ..... .. Condition 0/ Member Banks in Selected Cities While the investments of member hanks in selected cities showed a slight increase between January 11 and February 8, their loans and deposits reflected a decline. The investments of these banks in United States Government securities were increased $2,689,000 during the period, but their holdings of other securities were reduced $2,393,000. Total investments on February 8 were $1,141,000 larger than on February 10, 1932. During the four-week period, loans on securities declined $1,441,000 and "all other" loans (largely commercial) showed a recession of $4,952,000. Total loans of these banks amounted to $220,34,6,000 on February 8, as compared with $273,888,000 on the corresponding date in 1932. The net demand deposits of these banks declined $1,043,000 between January 11 and February 8, and on the latter date were $24,4,64,000 less than a year ago. Their time deposits showed only a slight ~ : § § DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) :: : January 1083 III: Peroentage ohange over year Deoembor 1982 Peroentagc ohange ovcr month = 'I! II ':111111 iiIt :!f~ i[~ ~I ~~J ~il 1 ._ .f._ .. = ':11 January 1082 ~ s a a g Total....... $408,807 $500,515 -21.4 $532,054 -12.0 . ~Inoludes the figures of two banks in Texarkana, Arkansas, looated in the Eighth DIstrIct. _._._:1 , III1 .... II .... III1 ... ,IIIIIIIIIIIII .... II ... ,III .... IIIIIIU ..... IIIIIIIIIIIIIIII .... 1111 ..... 111111111111111111" .. '11(. Deposits of Member Banks The daily average of combined net de' mand and time deposits of member ba~k: in this district during January, whl~ amounted to $611,062,000, was $1,966,000 smaller than ?n the previous month, the decline being due to seasonal l~' fluences. A further improvement was shown in the com~ard son with the same month a year ago, when the combIne MONTHLY BUSINESS REVIEW average amounted to $664.,954,,000. The reduction in net demand deposits, as compared with December, was partially offset by an increase in time deposits. ~1I11111111"111I11I11"1"111I11I1I"11I1t1t1l1t1l1l1l1l111l1l1"111I'11111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I.II '.! 1 : . . Jan., Feb., : :: : I:::::::. ::::::~::=:= BA::., _ omy domand Not deposits 1032 ...... 5468,172 1932. ..... 469,110 461,557 ~ril, 1982..... . 445,050 ay, 1982...... 434,865 Mar., 1932...... $106,782 106,672 194,887 191,208 190,729 1221,700 222,116 221,835 216,640 212,117 187,040 189,716 103,246 102,266 104,407 202,121 200,582 204,361 202,013 201,487 $ll8,475 $246,373 118,003 246,904 117,380 239,722 115,732 228,401 115,372 222,748 $78,307 77,579 77,548 75,561 75,357 i~Y:: mt::::: !~~:m UH~! ~~H!~ HH~i ~!H~! ~H~~ Mov., Sopt., 1082. . .. .. Oot., 1982.. . ... 1932. .... . co., 1982... ... Jan., 1033...... 413,201 413,100 421,165 420,762 416,655 . :1 Time Not domand Timo Not domand Timo doposits deposits dep06its dOP06its deposits 113,937 116,186 116,816 117,465 119,215 211,170 212,608 216,804 217,849 215,218 : :: : 73,103 73,530 76,430 74,801 75,192 I:::::::. 111111111' •• 1111 •••• 1 •• 1111. 1.1. 1 ••• ,1111111111111111111111111111111111111111111111111111111.1111111.,11111111111111"11";' 6 AccepfXJJnce As is usual in January, a substantial de· cline was shown in the amount of accept· ances executed by banks in this district and outstanding at the close of the month. The figure reo ported as of January 31 was $796,4.81, which compares with $1,385,620 a month earlier, and $2,997,516 a year ago. Acceptances based on the domestic shipment and storage of goods accounted for the reduction, as a small increase was reflected in the total of acceptances executed against import and export transactions. Market Savings Deposits The savings deposits reported by 138 banks in this district on January 31 totaled $140,459,199, which is only 0.9 per cent less than the amount shown a month earlier, and 3.1 per cent below the level of a year ago. Savings accounts at 120 of these banks numbered 321,729 at the close of January, as against 321,524 on the last day of December, and 332,517 on January 31, 1932. 1"..........,.. "'.............................."'''''''''''''''''''''''''.. '''''''''''''''''.'''''''''"""~~~~;~~"~~;~~~;.~."""""'''''''''''''''.'''' .. ''''''''''.''''''''''''''''.''."''''""" """""""""'". """'" .. .. j::: Number of reporting January 31, 1983 NllInber of Amount of savings savinI\" January 31, 1982 Number of Amount of savings savinI\" I: ~;+.:: T d'lm 'If~ '1~ i. :. : ~ ort Arthur... .. ... ....... S Sbn Antonio .......... ... .. Wrevcport ........... . .. .. Wnco...... ...... ....... .. Aliehita Falls.............. 1 others.. . ............ .. S 2 4,217 1,843,267 4,552 Decomber 31, 1932 Number of Amount of savings savin~s Percentage ohange over year in 'I! a.iI;r d'Ii '~I~~ a"!r 1,790,739 + 2.9 4,144 I 1,834,735 +.5 U ~ ~~',m 1~,,~~,,~~~ ~~',r~; t~·,~~',~~ =10:~ ~~',~~t 1~,,~~~,,~~~ = 3 10,268 2,928 51,087 5,552,407 2,290,557 22,936,312 10,158 2,986 56,284 5,528,600 2,861,391 24,820,779 + .5 - 3.0 - 5. 7 10,344 2,926 6,604,749 2,26G,526 23,015,476 -.9 + 1.3 -.3 321,524 5141,736,165 3· 35· ~ TotaL... .. ......... 138 321,729 1140,459,199 332,517 $144,960,655 - 3.1 · Only 7 banks in Dallll8, 10 in HOUBton, 2 in Wiehitn Falls, nnd 71 in "All others" reported tho number of savings depositors. :: Percentage ohonge over month in SIIIIII11111111111111.1111 •• IIIII.III I •• 11111 111111111111. l lllfllllllllllllllllllllllll.IIIIIIII.IIIIIIIIII'Iflllllllllll.IIIIIII •• IIIIIIIIIIIII.IIIII ••• ,I.I •••• - .9 11.1111111111111111111"11111.1.11111'1111111111111"1'IIII'IIIIIIIIIIIII'IIIIIIIII"IIIIIII~ I ~IIII'IIIIIII'IIIIIIIIIIIIIIII'IIIII'IIIIIIIIIIIIIIIII 11111111111.1111111111111111111111111111111111.1,111111111111111111111111111111111111111111111111'11111111111111 ••• 1"111111111111111111'11111111111111111111.1.11111111111111111,11111111111.111111111'; ~ FEBRUARY DISCOUNT RAT.. P• ..ui~ ..., :: : = :.: :: : I~ I '111111111111" ... 1111111111111101111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111.11 .. 111'"11111 1I1111"'lIlIlIllIlflllifllIllIllIlIlllIlll"I"I I "I"'III1I1I1I1IUIIIIIIII"III~ INDUSTRY Textile With the activities of mills in cotton· Milling growing states proceeding in larger-thanlh average volume, the textile industry in . e United States witnessed a substantial seasonal increase In the consumption of cotton during January, and showed liurther appreciable gain over the like month a ye~r ago. ere were 4.71,202 bales of cotton oonsumed durmg the ~onth, as against 440,062 bales in the previous month, and th 4·,726 bales in January, 1932. During the six months of e CUrrent season, August through January, consumption a;eraged 7.1 per cent greater than that in the same period o the preceding season. Supplies of cotton at consuming establishments on January 31 were somewhat smaller than a lllonth earlier, contrary to the usual holdings on that date. Stocks were also less than those held on the same date last year. :11111.11111.1.1111111.11111111111111111.111111111111111111111111111111111111111.1111111111111'11111111111,. III'I'IIIII'I'~ COTTON CONSUMED AND ON HAND (Bales) January Cotton-growing states: Cotton consumed ......... . . On hand January 31 inConsuming establishments. Public storago and oompresses .. ... . ..•.....•• United States: . Cotton consumed . .. .... . .•• On bond January 31 inConsuming establishments. Publio storage and comprCSBes ............... . January 1933 1982 397,774 358,048 August 1 to Janunry 31 This senson Last season 2,351,060 2,155,041 1,202,049 1,302,641 9,527,283 471,202 434,726 9,628,725 2,811,486 2,625,748 1,495,527 1,638,136 10,020,760 10,030,427 MONTHLY BUSINESS REVIEW 6 Both the consumption of cotton and the production of cloth during January at reporting Texas textile mills were in smaller volume than in either the previous month or the corresponding month a year ago. Orders for finished prod. ucts held at the close of January were also much smaller than on either comparative date. Stocks of cotton goods on January 31 were approximately the same as a month earlier, hut materially greater than a year ago. 1,039,795 bales in December, and 919,338 bales in January, 1932. Shipments during the period from August 1 to Janu· ary 31 amounted to 5,039,714 bales, which was 1.7 per cent above the 4,954,394 bales shipped in the like period of the previous season. It is significant to note that exports to all major European countries have been greater this season than last, while shipments to the Far East, and particularly China, have been much smaller. A further seasonal contraction was evi· denced in the operations of cottonseed oil mills in the United States during January. At Texas mills, however, the production of cake and meal, and linters was above that a month earlier, and the output of cottonseed oil and hulls was only slightly smaller. As compared with the corresponding month a year ago opera· tions were again on a lower level, with the exception of seed receipts at Texas mills. The first half of the 1932-33 season closed with activities at both Texas and United States mills in considerably smaller volume than in the same period of the previous season. Stocks of cottonseed on hand at the close of the month remained exceedingly large. Supplies of oil at all United States mills continue to accumulate notwithstanding the curtailed production; on January 31 they were above those a month earlier, and greatly exceeded those a year ago. Stocks of cake and meal were also above those held at the close of January, 1932. At Texas mills inventories of oil and hulls were less than a year earlier, while cake and meal, and linters were greater. '0111.1111111'1111111111111111111111111111111,11111.1.111 • •• ,111111111'11111111111111111111111.1'11111.111111III'IIIIIIII'II! Cottonseed Products ~ III1IUtlllllllll" "'II I III "IIIItIlIIl IlU III UIl II III1II1I1.tl lllI lIlIlll lll 111111111111111111111111111111111111.11111 •.: ::1 : .. : mTmr~ ON =:;~~;=N:~D~~1: . Cottonseed received at mills (tons) ... , .. . . . . . . . . . . .. . . . Cottonseed crushed (tons)..... ~ C(\!:':ai~~. ~~. h~~d. ~.a.~ .. ~~. . : : a 1,504,575 1,140,315 3,021,283 3,000,117 4,721,014 3,540,727 : Cake and meal (tons)......... Hulls (tons) ..... , ... . ....... Linters (running bales)........ 140,864 475,807 34,587,685 100,516,038 53,328 342,565 86,558 176,098 85,789 288,382 560,090 88,372,555 217,377 217,627 310,616 Stocks, January 31. . . . . . . . .. . 223,133 266,717 ~~~ ~:~cB~it~i.~ .. : : :: :: :: : ::::: : : :: :: : : : : : : :: : :: ::: : For !,ther f~reign ports ............. . .... .. . . .. . . .. ... . For COMtwlse ports . .. ....... . ... .. .............. . ... . In compresses and depots .. . ...... ................... . Jan.31, 1033 12,000 5,000 33,500 500 808,537 Jan. 31, 1032 0,000 5,500 71,000 2,000 028,072 Total. .................. .... ....... . .. . . 850,537 1,015,572 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1111 ;' ~""''''' ''''~~;;~~'':~~~:~~~~';;:i~~''~;'~'~~~;'~;'';~~~;~~''"""""":::.:::.1 RExepoccirPtsts................ :...... . .... . •... ...... January 1033 307,203 237,876 ~11I1I11111111111t111t1111l1l1l1l1l1l1l1l1l111111l1l1l1l1l·1I1I11 January 1032 317,034 262,515 August 1 to This SCMon 2,273,243 1,495,530 1,849,174 January 31 Lnst SCllllon 2,757,840 1,802,024 1,651,304 ...... IIII .. ,I .. I .. 1I 1IIIIIIIIIIIIIIIIIIIIIIIIIIIIItl :.111111111111111.111111111111111111111111111111111111111111 .. 11 ...... 11lili 1111111111 IIllItllllllllllllllllllllllllllllllllllflt~ SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTS-(Bales) August 1 to January 31 This seMon LMt sCllllon Rcccipts....... .. . ....... . .. ...... . . . ... . .... . ... . ... 6,729,814 7,520,802 Exports: United Kingdom. . . . . . . .... . ... .. . . . .... . . . . 874,084 710,509 France.. . . . . .. . . . . . . . . . . .. .. .. . . .. .. . . . . .. . 583,820 200,116 g;~:~~~~~~::: ::: :::: :::::: :::::: : :: l,i~mi !~Ui~ ::::: ~1I11111111t""IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII"111 1111111111111111111111111111111111111111111111111';: Cotton Movements Although total foreign exports of cotton from the United States reflected a recession somewhat larger than seasonal during January, they were 10.5 per cent above the average shipments for that month. A noticeable decline was witnessed as compared with the conesponding month last year. Exports totaled 793,666 bales during the month, as against 1,243,684 1,015,572 COTTON-GALVESTON STOCK STATEMENT (Bales) ~.: :. Exports of cotton from the ports of Houston and Galveston reflected a large seasonal decline during the initial month of 1933, and shipments were also considerably under those in January a year ago. Exports from Galveston during the first half of the current season showed a further slight increase over the corresponding period of the preceding sea· son, while at Houston they were substantially smaller. Re· ceipts of cotton at both ports likewise witnessed a recession as compared with hoth the previous month and the same month last year. Stocks of cotton held at Galveston on Janu· ary 31 were less than those a month earlier or a year ago, but at Houston they continued above those held on both comparative dates. 1,257,130 850,537 :"1111111111111111111111111111 .. 1111111111111111111111111111111111111111111111111111111111I1I1I1I1I1I1I1I1I1I1I1I1I1111I1I1r. a 120,252 33,722,523 87,388 73,012 88,070 . ~~~ONMO'~.Nm :~~~ ;~'T;~~~~ 1 : . Stocks, January 31. . . ... .. . . . 456,876 368,410 1,211,440 1,100,050 ~ Crude oil produced (pounds)... 302,556,215 342,211,873 027,938,0901,103,650,447 : Cake and meal ~roduced (tons) 467,767 530,183 1,356,412 1,588,105: Hulls produced (tons).. . . . . . . . 295,206 333,222 851,430 095,054 : .~ Crude oil (pounds) . .~:7~~~". . ~]~nP~:~'c:~: . . . . . . • :. 1,202,756 1,011,148 1 :.. : Jar.n ...... . ......... , . . . . . . .. . . . . .. ... . ... 1,112,123 AI other countries . . . ... . ...... . ....... . .... 337,424 Total forcignJ!orts ... . ... . ....... . ....... .. .......... 5,039,714 Stocks at all United States ports January 31 ............. 4,764,189 1,200,204 070,588 4,054,304 5,007,444 :: :'111111111111.11111111111111111111111111111111111111111111111111111111111111.111111111111.1.1111111111111111111111111II1 I 11 '~II1I1IIIIII1I1III1IIIII1IIIIIIIIIIIIIIIIII1I1I1IIII1I"11I1I1I1I111111I1I11I11I111111111111111111111111111111111"fll"I'~ : SPOT COTTON PRICES-(Middling bMis) (Cents per pound) Ncw york... ..... ....... ... . .......... .. NewOrieans....................... . .. .. . Dallas .... . . ............ .. . . ... ... ...... Houston.............. ... ...... . .. . ..... Galveston... . ................. . ... . .... . January, 1033 High Low 6.40 6.00 6.33 5 .88 5.00 5.50 6.25 5 80 6.30 5:00 :.~ ~ February 16, i. 1033 6.05 ::.i 5.08 5.56 5.85 : 5.00 i , .11'111111111' 111111 111111111111111111111111111111111111.1111'11 • • 11 •• 1,.111 1111'1,11111'111111111111111111'111111111111"i Production of crude petroleum in ~e Eleventh Federal Reserve District dur!ll~ January showed a further decline from the previous rnollt and was materially lower than in the same month a ~e~ ago. The total output was 24,704,700 barrels, as aga 1ll. 25,64.7,150 barrels in December, and 28,336,550 barrels )/1 Petroleum MONTHLY BUSINESS REVIEW January, 1932. There was also a further reduction in field activity, and a larger number of failures was reported. Of the 623 wells completed in January, 452 were producers having an initial flush output of 2,235,531 barrels. There Were 670 wells completed in the preceding month, of which 514 were successful and had an initial yield of 2,697,297 barrels. J The daily average production from fields in Texas during anuary amounted to 735,955 barrels, as compared with 770,365 barrels in December, and 847,948 barrels in the ~orresponding month last year. Decreases were registered all s,ections of the State, the largest being in East Texas. . oth New Mexico and North Louisiana showed an up-turn In their output during January. 13 Further adjustments in prices were made between January 19 and 21. Postings of major companies were reduced by an average of $.25 per barrel. ~11111111111111111'111'1111111111111111"IIIII.IIIII'1 '11 • • llltlllllllllll lll llllllllll'I II IIIIIIIIII •• 11111.1111 •• tllllllJ: ~ E : :: ~. ~orth Texas. ... . .... . . . ..... = Eeatral West Texas..... ...... January, 1983 Total Daily Avg. 2,825,650 91,150 5,065,250 182,750 Incrcnae or decrease over Deccmber, 1932 Total Daily Avg. 85,500 - 2,758 65,050 - 2,118 ~: ~~~C~~:~~~~~::::::::::: i:*H~ 2715~l51~ "':5~92~ 5 ~1 7~U~~ N Total Toxas...... ..... 22,814,000 New Mexico ................. 977,150 orth LouiBiana ...... , ..... . . 912,950 29,450 Total District..... ..... 24,704,700 : 790,920 ~ :"1 11 1111".111 ......... 1.1111111.111 •••• '1111111.1 •• 1 •• ~1I 111111"1""IIIII"'I II"IU" I I"UIIIIII IIIIIIIIIIII " I II"1I1"""l1l1llf1ll1l1l111111 II 1111111111111 II II IU IIIIII¥ E E JANUARY DRILLING RESULTS : : Initial ~_ Production : 2,103. 8,490 . 2,020,843 • 12188',993247_E Complctions 70 52 269 7 19 4 0 Produccrs 25 30 255 4807 Gas Wells 2 5 1 41 Fallures 43 17 18 6°9 1 Total Texas.. . ...... NNe~:rLoexi~o... .. .. .. .. .. .. . or UISInWl.. .. .. .. .. • 592 /4 437 7 8 13 .3 ' 142 '1' 3' 2,185,303 48 ,6 °8 1, 720 E : E E E January totala, diatrict ... .. . E December totals, distriot. . .. 623 670 452 514 16 12 156 144 2,235,531 2,097,297 E E E_ : • • :: _ E S : E E North Toxas........ .. .. .. . Central West Texas. ... .. .. . East Contral TCXll8.. .. .. .. . South Texas.. .. .. .. .. .. . .. Texas Coastal. .. .. . ...... . . ~IIIIIIIIIIII UIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIII I"11 1I1111111111111111111111111111111a ~ ............................................ ~.~~~~.~~~.;~~~~~ ... ..........................................1_ 6 Fcb. 10, Toxas Coastal (84 gr. and abovo)....................... North Toxas and North Louisiana (40 gr. and abovc)... .. ·Price paid Cor oil, 40 gr. and above. Feb. 9, 2 8 • 36. .86 .19.~~ • "" " .52 .to. ::E: § ~ OIL PRODUCTION-(BarrclB ) : 7 !' UIIIIIIIIUIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIII .... ,III .... llIllnUlia E Building :: : : :_. • ~: ! - 1,000,700 + 102,900 + 21,350 =2Uii - 34,410 + 3,319 + 689 : - -30,402 ~ 942,450 1.1111111111111111'1"11111111111.,.1111" 1 111111111111 "II ' I'I'I'~ (Oil statisties compiled by Thc Oil Weekly, Houston, Toxas) Following the sizable improvement which was shown in the preceding month, a decrease of 35.5 per cent was reflected in the valuation of construction permits issued during January at leading centers in the Eleventh Federal Reserve District. The total for the month amounted to $719,736, as compared with $1,115,348 in December, and $1,665,938 in January, 1932. Despite the material decline in total volume from that of the previous month, eight of the fourteen reporting cities showed increases. '~IIIIIIIIIIIIIIIIIII'IIII1'I1I1""I1I1I1I1I1I1I1II1I"III'"I1I1I1III1'"I1I1"I"'"1I1I 11111 .. 11 ..... 111111111 .. 1111 .. 11111111111 .. 111111111111111.1111 .......... 11111111111 .... "1 1I1111I1 ... " ~ § I .... IIIIIIIIIIIIIItIIlIIIlIl .. III .. IIIIII.III1 .. III .. BUILDING' PERMITS IIIII~ E E NO~anuar:~:::ion NO~anu.r:a::::ion 1~r;~I~:!~~hg~:ro N:eoomb;~::::n 1~r~~k1!~tg~:ro ~ ~~:~t·:::::::::::::::::::::::::::::::::::::::::: : i! s ~~:i~! H $1!Hii ~H i~ S d:m § D~lr.us Christl...... .... ........ ................ .... . 2n 17~:~~~ 2~~ d:m ±~~:~ I~g ~~:~~~ i:'lil::;: $257~I'o·,173~6' ~ ~1i ~! sl'~1 !6:i'!3t4':8 :1 Total.... ............................... 1,078 ,Ii 1,257 $1,605,938 -56.8 700 r:u I +1~U HI I: - 35.6 ~ 1111111111111111111111111111111111111111"111111111111111111111'1111111"'11111111111111111111111 11111111111111111111111111111111111 ... 111111111111111111111111111111111111111111I11111I1I1I1I1111I .. 1I1I1I1I111I111I11I1I 1I1I 11I1I1I1I1I1I'"IIIIIIIIr. E e'entent The production of Portland cement at th Texas mills was reduced somewhat furh er in January. The month's output amounted to 255,000 barrels, as against 289,000 barrels in December, and 338,000 arrels in January last year. The volume of shipments, reCOVering appreciably from the low level of the previous ~hlhl ~ : E : 1 11 month, amounted to 285,000 barrels, which is 18.3 per cent higher than the total of the corresponding month a year ago. Stocks on hand at the end of January aggregated 646,000 barrels, showing a reduction of 4.6 per cent during the month and a decrease of 21.5 per cent as compared with January 31, 1932. '"1111" 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,11111111111"'111111111111111111111111111111111111111111111111111111111111111111 111111111 11111111111111111 !_ PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT (In thousands of barrelB) : Ii~~:~:~EE:i,~!~i~~~ ~~.::::::: :::::: :::: :::: :::::: ::::: : :::: : ::::: ::::: : :::::: : ::::::::::::::::::::: Percontagc change Crom JanUTH1935 Dec~~~f82 Jan~~f32 ~IIIIIIIIIIIIIIIIIIIII""'IIIII'I'I'I'I'IIIII'IIIIIII 1111111111111"'1111111111111111.11111111111 1 11111111111111111111I11111111111111111111111111111111111111111111111111111111111111111111111.111111111.1111111111111111 •• ,111111111.11111.11111111111.111 I 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board as of February 24, 1988) Volume of industrial production increased in January by less than the usual seasonal amount and factory employ· ment and payrolls continued to decline. Prices of commodi· ties at wholesale, which declined further in January showed relatively little change in the first three weeks of February. PRODUCTION AND EMPLOYMENT Industrial activity as measured by the Board's index, which makes allowance for usual seasonal changes, de· clined from 66 per cent of the 1923·1925 average in Decem· ber to 64 per cent in January, which compares w~th a low level of 58 per cent last July. Output of coal dechned con· siderably contrary to the usual seasonal tendency. Increases in activity in the cotton and silk industries wer~ somew~at less than seasonal in amount, and there was a slIght declme in production at woolen mills. Output of shoes increased seasonally. Activity, in the steel industry showe~ a seasonal increase during January, and little change durmg the first three weeks of February. Automobile production, which had increased substantially in December showed a further slight increase in January. Factory employment declined between the middle of December and the middle of January by con· siderably more than the seasonal amount. Decreases were reported in most lines except in the co~on, wool, and si~k industries, where employment showed lIttle change, and m the automobile and shoe industries, were employment increased. Construction contracts awarded were in about the same volume in January as in December, according to the F. W. Dodge Corporation; in the first half of February the value of awards showed a decline. DISTRIBUTION Volume of freight traffic was somewhat smaller in January than in December, reflecting a reduction in shipments of coal. Sales by department stores decreased after Christmas by more than the usual seasonal amount. WHOLESALE PRICES The general level of wholesale commodity prices, as mea' sured by the index of the Bureau of Labor Statistics, de· clined further from 62.6 per cent of the 1926 average in December to 61.0 per cent in January, reflecting substantial reductions in the prices of crude petroleum, gasoline, teX' tiles and dairy and poultry products. Prevailing prices for wheat, cotton, and hogs in January and the first three weeks of February were somewhat above the low levels reached in December. BANK CREDIT Between January 4. and February 21 there was an increase of $319,000,000 in the demand for currency, accompanying banking disturbances in different parts of the country, and a decrease of $64,000,000 in the country's stock of monetary gold. These demands were met by member banks in part by the use of their balances at the Reserve banks, which de· clined by $24.3,000,000 during the period, but continued to be considerably above legal requirements. Reserve bank holdings of United States securities declined by $88,000,00 0 between January 4 and February 1, but increased by $70,000,000 during the following three weeks; their holdings of acceptances increased by $141,000,000 and discounts for member banks increased by $76,000,000. Loans and invest· ments of reporting member banks in leading cities declined by about $100,000,000 during the five weeks ending Febr u. ary 15. The banks' net demand deposits declined by $390,000,000, reflecting largely reductions in bankers' balances, and time deposits showed a decrease of $93,000,000 for the period. Money rates in the open market were slightly firmer during the first half of February. Open market of 90 day bankers' acceptances, which had been % of 1 per cent, had increased to o/s of 1 per cent by February 20. Rates on prime commercial paper and on stock exchange loans reo mained unchanged. The minimum buying rate on bills ~t the Federal Reserve Banks of Boston, New York, and ChI' cago, was reduced from 1 to lh of 1 per cent.
@FedFRASER