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--MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DA l lAS
CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents
C. C. WALSH
Chairman and Federal Reserve Agent
(Compiled June 15, 1934)
Dallas, Texas, July 1, 1934
Volume 19, No.5
=-
This copy Is r eleased for pubIicatlon in afternoon papers-
July 2
DISTRICT SUMMARY
and livestock industries. The continuance of the drouth over
a large area in the western half of the district and subnormal
rainfall in some other sections have retarded crop growth.
Eleventh Federal Reserve District
According to the June 1 report of the Department of AgriMay
Change from
culture, the yields of small grains will be larger than the
1084
April
small crop of 1933, but will fall considerably below the
~ debita to individual oecounta lot 17
+ 0.7%
1.0%
D cltios) .................................. . $530,000,000
average. Feed crops are suffering from the dry weather and
+
ll~portment storc soles ........... ... , . . ... . .
reduced yields are indicated. While the cotton crop has
...."'?rve bonk loons to member bonks at end
+182.5%
565,071
R 0 month ................... .... ....... ..
made fair to good progr;ss generally, growth has been slow,
61.3% + .2 pointa
B~Icdr.ve honk mtio at end of month ... ...... .
CUI Ing ~rmit voluntion at larger eenters .•.. $ 2,055,305
plants are small for thiS season, and there are some com+104.2~
- 41.0
18
Commerelal fnllures (number) ............... .
- 61.0
plaints of pre-mature blooming. Heavy rains over much of
OUmmerolal failures (Habilitioo) ......... .... . $ 165,027
+ 7.5 0
34,157,350
--.£!:oduetlon (harrels) .......... . . ... .. . .. .
the cotton territory are needed to sustain crop growth. The
presence of insects over a wide area is a potential danger
to the crop. Livestock ranges have deteriorated sharply and
A. sharp decline in the business mortality rate, a sub- stock water is scarce in some sections. Livestock have about
st~ntial improvement in merchandise distribution, and a held their own, but are beginning to feel the effects of poor
~al~ in bUilding operations were constructive features ?f t~e pasturage.
dUStness and industrial situation in the Eleventh Dlstnct
The financial situation reflected no material changes dururing the past month. The number of failures in May was ing the month. The deposits of member banks declined
~ a low level and the indebtedness of defaulting firms was seasonally, the daily average of combined net demand and
~ e SInallest in any month during the past. f?urteen years. time deposits being $708,920,000 in Mayas compared with
h.e sales of department stores in larger cIties reflected a $715,94.5,000 in April, and $580,932,000 in May, 1933.
\al n of 10 per cent over April, and were 22 per cent larger Member bank borrowings from the Federal Reserve Bank
an. in May last year. Wholesale distribution ,~as sub- increased considerably between May 15 and June 15, hut
1anhally larger than in April and exceeded that m May, continued in small volume. The loans of member banks in
933, by a wide margin even though busines~ i~ the latt.er selected cities reflected a further decline between May 9 and
?tonth Was very active. The valuation of bUlldmg perml:s June 13, but their investments increased slightly. While
lhsue~ at principal cities in May was approximately dou~ e Federal reserve currency in actual circulation reflected a
t at In either the previous month or the correspondll~g further slight seasonal decline between May 15 and June 15,
onth of 1933 Debits to individual accounts at banks m
the figure on the latter date was well above that on the
eading centers' were slightly above those in April, and 24 corresponding date last year. Subscriptions to the United
Per Cent in excess of those in May last year.
States Treasury bonds and notes, bearing 3 per cent and 2718
per cent, respectively, dated June 15, totaled $344,159,450,
h Tempering to some extent the favorable business ~ituation
aVe been the untoward developments in the agncultural against which allotments of $48,628,700 were made.
THE SITUATION AT A GLANCE
!t
r
BUSINESS
~hol
'I' esale
AI'
genera Improvement I'n business at
wholesale in the Eleventh Fe?eral ReWh.
serve District occurred durmg May.
lIe the only reporting line which usually show.s an ~x
pansion in this month is farm implements, substantIal .gams
~Il all lines were registered in May this year. Sales contm~ed
~Il larger volume than a year ago, the increases rangmg
{Om 13.0 per cent in the case of groceries to 16~.7 per cent
11 the case of farm implements. This was particularly entade
couraging in view of the active business in May last year.
Reports from various quarters indicate a strengthening of
sentiment in both wholesale and retail channels. Stocks on
the last day of May were materially smaller than on April
30 in the case of all lines except one. Total collections during May exceeded those of the previous ~onth in. the case
of groceries, dry goods, and hardware, :whlle declInes were
reflected in the case of drugs and farm Implements.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
II'
I
MONTHLY BUSINESS REVIEW
2
------------------------------------------------~~~~~~==~~~~-----------------------------------
While the distribution of groceries at wholesale usually
continues with little change from April to May, a material
expansion was registered in this district last month. Increases of 9.3 per cent and 13.0 per cent, respectively, were
reflected in the business of reporting firms as compared with
the preceding month and with May, 1933. The latter comparison was more favorable than in April. Stocks on hand
at the close of May were 5.3 per cent smaller than a month
earlier. Collections reflected a slight gain over the previous
month.
An increase of 19.9 per cent, seasonal in character, was
recorded in the distribution of farm implements through
wholesale channels during May. Sales during the month
were 168.7 per cent greater than a year ago. Despite the
prevalence of dry weather over a large portion of the
Eleventh District an undertone of confidence continues to
exist. No material change in the prices of farm implements
was reported in May. The month's collections were 25.4 per
cent less than those in April.
The business of wholesale dry goods firms in this district
during May exceeded that of the previous month by 5.7 per
cent and was 16.1 per cent above that of the same month
last year. Total sales from January 1 to May 31 were 65.9
per cent greater than in the same period in 1933. While
inventories reflected a decline of 3.5 per cent from April
30 to May 31, they were still more than twice as large as a
year ago. A further increase in the volume of collections
was shown in May.
Sales of drugs by reporting wholesale firms in this district reflected a counter to seasonal upturn in May amounting to 9.9 per cent and were on a scale approx.imately onefourth larger than a year ago, this being the same comparison as was shown in April. Stocks at the close of the month
were 5.9 per cent less than on April 30, though 10.6 per cent
above the level of the same date last year. The volume of
collections during May showed a small decline from the
previous month.
The demand for hardware at wholesale during May evidenced a non-seasonal gain of 7.9 per cent, and was 47.5
per cent larger than in the same month last year. While the
improvement was general over most of the district, there
were a few scattered sections where buying was somewhat
curtailed. A further expansion in collections was reflected
during the month.
CONDITION OF WHOLESALE TRADE DURING MAY, 1984
Percentage of inorcnse or deorcnse inNet Sales
Stocks
Ratio of cellco,
Net Sales
May, 19a4
Jan . 1 to date May, 1934 tions during
oomparcd with eompared with compared with to accounts Jin g
May, April, samc period May, April, notes outs~130 D
1933
1934
last year
1933 1934
on Apn
Grocerics ......... + 13.0 + 9.3
+ 20.8 + 18.2 - 5.3
77.0
Drygoods ...... .. + 16.1 + 5.7
+ 65.9 +104.7 -3 .5
33.2
Farm implements .. +168. 7 +19.9
+224.9 + 11.5 +.9
4.0
Hardware .... . ... + 47 .5 + 7.9
+ 62.2 + 2.3 -3.0
53.1
Drugs ............ + 24.8 + 9.9
+ 29.7 + 10.6 -5 .9
46.0
Mna
Retail
Trade
The demand for merchandise at depart·
ment stores in principal cities of ~e
Eleventh District turned upward durtn~
May. Sales reflected an increase over the previous mon~
that was somewhat larger than usually occurs in that mont 1,
and they continued in much larger volume than in the co~re·
sponding month of 1933. Merchandise distribution ?urtnJ
the month averaged 9.7 per cent greater than in Apnl, an
22.0 per cent above that in May last year. This bank's .se
sonally adjusted index of department store sales dechne
?uring ;the month from 80. ~ per cent of the 1923·25 ave~agd
m Apnl to 73.8 per cent m MliY, but the index remaI11e
on a .level ~uch higher than a year ago. Sales o~ meri
chandlse durmg the· first five months of the year weIe 31h
per cent greater than in the corresponding five mont S
. of 1933.
d
Imentories of merchandise on May 31 reflected a seasonj'
decline of 2.4, per cent as compared with those held a mon~l
earlier, but they remained 24,.8 per cent greater than on : e
same date a year ago. The rate of stock turnover durt~~
the first five months of 1934. was 1.26, as compared WIt
1.15 in the same period last year.
Collections of both open and installment accounts evi'
denced an increase during May. The ratio of collections to
open accounts outstanding on May 1 was 39.5 per .cen~ as
against 37.3 per cent in April, a~d 32:4. per cent 111 ~:8
1933. Installment account collectlOns mcreased from 1
per cent in April to 15.1 per cent in May.
.---.
BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
May, 1934, oompared with May, 1933 ............... . ....... .. ................ .
May, 1934, compared with April, 1934 ... .... .... ...... ....... . ................ .
January 1 to dato compared with same period last year ......................... ..
Credit sales (percentage):
May, 1934, oompared with May, 1933 ......................................... .
May, 1934, compared with April, 1934 ... . ..................... . .. . ............ .
January 1 to date compared with samo period last year ... , ... ...... • .............
Stooks on hand at end of month (peroentage):
May, 1934, oompared with Ma Y 1933 ........ .. ...... .. .. . .................... .
May, 1934, compared with Apri i, 1934 ........................................ ..
Stook turnover (rate):
Rnte ofstook turnover in May, 1933 ..... . ................... . ... . ........... . . .
Rntc of stook turnoverin May, 1934 ........... ... ............ . ................ .
Rate of stook turnover January 1 to May 31, 1933 ..... .. .. . ................... ..
Rntc of stook turnover January 1 to May aI, 1934 ...... . ....................... .
Rntio of May oolleotions to open ncoounts receivablo outstanding May 1, 1934 ..... .... . .
Rntio of May oolleotions to installment aooeunts roceivable outstanding May 1, 1934 . . . ,.
Indexes of department store sales:
B~~~i~:~=~piri, l~~t ::: ::: :: :: :::: :::: :::: :::: :: :::::: ::: :: ::::::::: :: :::
1~i~~=~;rli, l~~t: :::: :::: ::: :::::::: :: :: :::: ::: ::: :: :::: ::: ::: :::: :: :::
Fort Worth
+16 .9
+27.0
+22.9
Houston
+20.0
+ 6.9
+30.0
San Antonio
+22.4
+ .1
+29.5
Others
+15.2
+16.3
+23.4
Total Diatriot
+22. 0
+ 0.7
+31.5
+ 2.2
+27.7
+22.0
+7.4
+a2 . 1
+21.2
- 3.3
+31.7
+16.4
+16.1
+21.7
+ 7.1
+41.1
+18.7
+27.0
+24.3
+25.6
- 4.8
+14 .3
- 2.2
+20.1
+1.3
+29 . 1
+1.7
+26.8
- 3 .0
+24.8
_ 2.4
+
1.41
40.2
16.2
.24
.25
.94
.99
a4.0
11.4
.28
.26
1.25
1.27
42.4
43.1
75.6
76.9
77.9
81.8
91. 7
78.0
01. 7
82.1
83 .8
86.5
83.8
90.1
05.1
71.1
61.4
72.6
52.4
55 .2
51.4
53 .6
70.0
71.6
09.3
68.8
48.0
47.1
47.0
45.7
44.5
41.6
44 .9
39 .2
.28
.28
1.17
.34
.33
1.44
1.56
Indexes of department store steeks:
B~~~i~:~=~;Ji, l~~t::: :::::::: ::::: :: :: :::::::: ::: ::::::: :::: :::::: :::::
~~j~:~=~;Jl.l~~t:: :::: :::::::: :::: :::: :::::::: :::::::::::::::::: :: :::::
-
Dallas
+29.2
6.9
+40.6
.25
.22
1.03
1.05
36.4
19.5
+22 .6
+32.7
.27
.27
1.l6
t.20
30.5
15.1
70.7
75.7
73. 8
80.5
50. 9
58.2
56.3
56. 0
--------------------~~~~~~~~~~~----------------~
MONTHLY BUSINESS REVIEW
3
-----------------------------------------------------------The record of commercial failures in this
district durincr May was very favorable.
According to fhe report compiled by Dun
~ Bradstreet, Incorporated, only 18 defaults oc?urred durIng the month as aaainst 31 in April, and 63 m May last
year. The liabilities ~f insolvent firms declined to $165,927,
Commercial
Failures
which is the lowest amount reported since April, 1920, and
compares with $4,25,629 in the preceding month and $1,297,219 in the same month a year ago. The average indebtedness
of defaulting firms was reduced from $13,730 in April to
$9,218 in May.
AGRICUL TURE
Farmers throuCYhout this district have
made rapid p~ogress with field work
during the past six weeks and crops
generally are in a good state of cultivation ..On. th~ other
hand, sub-normal rainfall over much of the dIstnct m May
and the first half of June has had an adverse effect upon
Crops and heavy general rains are needed .to prevent CI:OP
deterioration. Heavy rains fell over a consIderable portIOn
of the drouth area of West and Northwest Texas late m May
and early in June, but due to the absence of subsoil moisture
tnore rain will be needed to sustain crop growth. Furthertnore, little or no rain has fallen in several counties in ~est
and Northwest Texas in the southern half of New MexIco,
and in Southeastern Arizona, where conditions are very acute.
Harvesting of small grains is practically c~mpleted in tl~e
Southern half of the district and is becommg general m
o~her sections. High temperatures in m~ny ~ecti~ns h~~e
1'1 pened grains prematurely and harvestmg .IS pIOce~dl. g
earlier than usual. The Department of Agnculture. m Its
June 1 report estimated the Texas wheat. produ~tIO~ ~t
25,74,9000 bushels the same as a month earher, whICh mdICates ~ per acre y'ield of 9 bushels, whereas last year the
per acre yield of 6.6 bushels produced a total o~ 13,~22,OOO
bushels. There was no change in the prospective YI~ld of
Wheat in Oklahoma in May and the estimated productIOn of
35,880,000 bushels for this year compares with a harve.st
of .33,095,000 bushels last year. Winter wheat prospects 1:1
Anzona and New Mexico were reduced between May 1 ~n
June 1 due to the continuance of the drouth and high
tetnper~tures. The condition of the oat crop in states attached to this district declined during May, but ~he June 1
Condition in all states except Oklahoma was higher than
on that date last year. The Texas oat crop is very ~potted.
Reports indicate that yields of some fields are turnmg out
Well while low yields are being obtained from other fields.
Poor yields are also reported for rye and barley crops.
The corn crop has made fair to good progress in portions
of North and East Texas, North Louisiana, and Southea~t
ern Oklahoma where timely rains were received, but ~n
other sections it is sufferina from lack of moisture an.d m
~ost of the southern half
Texas considerable de.tenorahon has already occurred. The Department of Agr~cultule
reported that hay crops in Texas on June 1 were m on y
fair condition. The condition of tame hay was rated at ~~
per cent of normal condition on June 1, as compared WIt
74 per cent a month earlier, and 73 per cent a year a9o.
Wild hay was estimated at 72 per cent, as comp~red :WIth
71 per cent last year. Hay crops in Louisiana are m fa~r to
gOod condition, but are poor in Arizona and New MeXICO.
Crop Conditions
;f
The planting of cotton is practically co~pleted ~n11 m~i~
of the crop ha.s been chopped to a stand m pra~tICa y
sections. Fields generally are clean and well cultIvated. ~he
crop is in all stages of growth, ranging from the ~loO:llng
stage in South Texas to very small plants. in o~t west
Texas. In West and Northwest Texas, the rams dunng the
Past month have given the crop a fair to good start, b~t dry
lVeather prevails in some counties and additional mOisture
will be needed in other counties to sustain growth. In much
of the older cotton region reports indicate that the crop
averages a little late, with plants small and growth retarded
on account of dry weather. In North, East, and Northeast
Texas, Southeastern Oklahoma, and North Louisiana cotton
has made generally good growth but there are complaints
of dry weather in some localities. Insect activity is reported
in most sections.
Fruit crop prospects on June 1 were reported by the Department of Agricultul'e as fair to good and the estimated
production is considerably larger than the poor crop of
1933. The condition of the citrus crop in the Rio Grande
Valley dropped sharply in May, as rainfall was light in the
producing area and growers reported a heavy drop of fruit.
The condition of the combined farm and commercial crops
of Irish potatoes in Texas was shown as 68 per cent of
normal on June 1 as compared with 73 per cent a month
earlier and 64 per cent a year ago. While dry weather has
affected the crop in some localities, the crop in general is
reported as in fairly good condition.
Livestock
The condition of ranges in the Eleventh
District is very spotty. In some areas
moisture is adequate for the present and ranges are furnishing fair to good grazing. Heavy rains fell over a considerable portion of the drouth area in West and Northwest
Texas late in May and early in June and conditions there
should show improvement. In several Texas counties bordering on Oklahoma and New Mexico, in the southern half of
New Mexico, and in Southeastern Arizona rainfall has been
light and of a local nature with the result that. ranges are
very po()r, stock water is scarce, and livestock are becoming
thin. Some stock are being moved to other states or to more
favored areas. Except in favored localities, the trans-Pecos
region is also very dry. The southwestern portion of the
Edwards Plateau region is likewise dry and is in need of
heavy general rains. Livestock have held up fairly well in
all except the driest areas, but they are beginning to feel
the effects of adverse conditions.
The Department of Agriculture in its June 1 report rated
cattle ranges in Texas at 78 per cent of normal, which was
4, points lower than a month earlier or .a y~ar ago. The
condition of sheep and goat ranges was lIkeWIse placed at
78 per cent, showing a decline of 2 points from the May 1
figure and 6 points from that obtaining on the same date in
1933. The condition of cattle, sheep, and goats reflected no
change during May, but as compared with last year, the
June 1 figure for cattle was ~ points lo~er and those for
sheep and goats showed a declme of 3 pomts.
Movements
and Prices
The receipts of cattle and sheep at the
Fort Worth market during May showed a
large seasonal increase over the previous
month but fell considerably under those in the correspondinO' m~nth last year. While the arrivals of calves were subst:ntially larger than in. either comparative peri~d, those of
hogs showed large declmes from both the preVIOUS month
and the same month a year ago.
II
4
MONTHLY BUSINESS REVIEW
-------------------------------------------------------------------------------------------------------The cattle market during the past month remained generally steady with a firm undertone_ There was usually a good
demand for choice offerings at higher prices. The hog
market fluctuated within a narrow range during May and
then showed a rapid advance during the first half of June
with prices for best offerings reaching $4,.35 at the middle
Cattle . ......... .
Calves .. . . . .... .
Hogs ........... .
Sheep . ..... .••. .
May
1034
48,257
18,510
37,554
140,673
1088
52,683
14,378
59,014
181,220
Change over
year
- 4,376
+ 4,132
-21,400
-40,553
OOMPARATIVE TOP LIVESTOCK PruCES
(Dollars por hundredweight)
May
May
FORT WORTH LIVESTOCK RECEIPTS
(Number)
May
of the month, or more than $l.00 higher than at the 1.0W
point in May. Sheep and lamb prices showed some recession
under the heavier supplies.
April
1034
33,768
11,289
48,016
37,125
Ohangeover
month
+ 14,480
+ 7,221
- 11,002
+103,548
Beef steers .. . . . . .. .. , . ...... . ..•...... ...
Stoeker steers ........................... .
Buteher eows .. ....... . . ................ .
Stocker eows ..... . .. . ....... . ... . ... . .. . .
Cnlves ...... . ..... .......... ....... .. . ..
t:t:::::::::::::::::::::::::::::::::
1033
$5.00
5 .00
3. 50
1934
$6.60
4.90
4.25
4.50
0.60
3.05
5.25
9.50
April
1084
$0.00
do
0:00
5:75
4.30
5.00
9.50
4.65
2.50
6.00
FINANCE
Federal reserve bank loans to member deposits of these banks totaled $281,095,000 on J~ne 13
an
banks reflected a further seasonal ex- which was $11,156,000 greater than five weeks ear her, rose
.
pansion during the past month, but re- $65,425,000 larger than a year ago. Their time depOSIts h e
mained at a very low level in comparison $4.1 0,000 during the period but were $2,668,000 under t ose
with previous years. The total of these loans rose from at this time last year. While the reserve deposits of. th~i
$359,000 on May 15 to $583,000 on June 15, and the latter banks with the Federal Reserve Bank declined shg~ t~
total compares with $4.,446,000 on the corresponding date between May 9 and June 13, the total on the latter a
in 1933. There were 24. borrowing banks on June 15 as com- was nearly three times as large as that on June 14~ 1933.
pared with 15 banks a month earlier, and 139 banks a year
ago. Investments in bankers' acceptances declined from
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In thonsands of doUars)
$310,000 on May 15 to $14.2,000 on June 15. There was no
----------------------------------------------change in holdings of United States Government securities
May 9,
June 14,
June 13,
1034
1033
1034
during the period. While the reserve deposits of member
$149,436
$ 93,282
United States seourities owned ...... . ..... . $146,485
51,460
banks showed considerable fluctuation during the past month
53,321
All otber st<loks, bonds, and soourities owned.
55,610
50,508
05,580
Loans on sccurities .................... . . .
00,118
and the total on June 15 was $6,822,000 lower than on May
126,531
143,131
All other loans . ....... . ................. .
122,244
186,120
15, the average for the period was practically the same as
208,670
Total loans ......... .... . ........ . .... .. . 182,302
260,080
215,670
281,005
Net demand deposits ... ....... .. ... . .... .
121,213
for the previous period. The actual circulation of Federal
124,201
Timo deposits .. ... . ................ . .... .
121,623
75,204
20,700
Reserve with Federal Reserve Bank ..... . . .
73,914
reserve currency totaled $4.1,314,,000 on June 15, which
Bills payable and rediscounts with Federal
None
700
Reserve Bank ..... .... .. ..............•
None
represents a further slight seasonal decline as compared
with that on May 15, but a gain of $4.,74.4~OOO over the
·,
circulation on June 15, 1933.
Debits to
eh arges to deposltors accounts at . banks
the
Individual
located in p l' inc i p a I centers 111 000
Accounts
Eleventh District totaled $530,099, aCONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
during May, reflecting a contrary to .seus
sonal increase of l.0 per cent as compared with the prerl~e
June 15,
May 15,
June 15,
1934
1933
1934
month. There was a gain of 23.6 per cent over the vo gOO.
$ 51,657
$103,170
Total oash reserves ...................... . $103,476
reported in May, 1933, when debits totaled $4.28,747, (10
4,446
588
359
Discounts for member banks . .. . ...... . . . . .
None
None
Nono
Other bills disoounted . . ....... . " ..• . . . . ..
While two cities failed to show an increase over a year a
142
335
310
Bills bought in opon market ..... ...... ... .
71,475
40,440
71,475
United States seeurities owned ... .. . .• . .. . .
eight of the seventeen reporting participated in the ga
None
None
5
Otber Investments ... . ... ..... . .. . ....... .
over both comparative months.
72,200
51,226
72,144
Totol earning assets ............. . .... ... .
Operations of
the Federal Reserve Bank
d
in;
Member bank reserve deposits ..... . ...... .
Federal reserve notes in actual oiroulation .. .
Federal reserve bank notes in aetual eiroulation .. ............................. . .
111,267
39,889
51,231
35,595
118,089
39,053
1,425
975
2,775
A slight increase in investments, a large
gain in deposits, but a recession in loans
was reflected by reports of member banks
in selected cities for the period between
May 9 and June 13. While the investments of these banks in United States securities declined
$2,951,000 during the period, their holdings of other secUl'ities were increased $4.,14.4,,000. As compared with a year
ago, total investments on June 13 were $55,4.92,000 greater,
but most of the gain was in United States securities. While
loans on securities showed an increase of $520,000 during
the five-week period, "all other" loans (largely commercial) declined $4.,287,000, making a net recession of $3,767,000. Total loans on June 13 were $26,308,000 below
those on the corresponding date in 1933. The net demand
Condition of
Member Banks
in Selected
Cities
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
__
--------------------------------------~~
Percentage
Percentage
ohango ovor
May
May
change over
Apr!'1
!Donth
1034
1033
year
1084
6
Abilene........ . $ 4,541
$ 3,884
+10.9
S 4,750
Austin .. ........
17,550
15,257
+15.1
21,820
-1 0 '8
Beaumont...... .
15,282
11,170
+36.7
14,304
+ 4' 7
Corsicana.. .... .
2,268
2,107
+4 .7
2,380
+1: 7
Dallas.. .. ......
156,807
110,202
+34.9
154,178
+10 . 6
EIPaso.. .......
10,838
14,202
+18.6
15,227
+ 5.6
Fort Worth......
54,547
45,805
+18.0
51,630
_ 6.8
Galveston.......
10,021
15,702
+ 1.6
17,182
20
Houston .. .. .. .. .
124,231
107:852
+15.2
127,915
3'2
Port Arthur.....
4,054
4,142
+19 .0
4,800
4' 0
Roswell...... ...
1,080
1,923
+ 3.3
2,009
+12'3
San Antonio.....
52,822
40,010
+32.0
47,022
1' 0
Sbreveport.... . .
28,459
20,913
+36.1
28,732
- 8'0
Texarlrona· .....
4,712
5,023
- 6.2
5,122
- 9'8
Tueson.... .. ....
8,135
7,001
+ 5 8
7,408
+ 8'2
Waoo...... .....
0,061
9,066
-:1
0,875
+16'6
Wiehito Falls ....
11,870
7,510
+58.2
10,288
~
h
:+
--
--
--
-
10
TotaL.... $530,090
$428,747
+23.0
$524,717. + Eighth
·Inoludes figures of two banks in Texarkana, Arkansas, loeated In tbe
Distriot.
~-------------Mm~vmNrn~~~--------------
_______________________MO_N_T_H_LY B_U_S_INES_S~R=E~V=IE~W~____________________~5
__
__
__
month, there being a slight gain in daily average time de.
posits during May.
Deposits 0/
Member Banks
Continuing the downward trend which is
usually in evidence at this time of year,
the combined daily average of net de·
~a~d and time deposits of member banks in this district
9unng May amounted to $708,920,000, as against $715,·
45,000 in the preceding month, and $580,932,000 in the
$~me month last year. Net demand deposits decreased from
23,397,000 in April to $516,090,000 in the subsequent
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
Combined Total
~ay,
Jure,
AU y,
Seug .,
~t.,
o
N0"
DOv .,
J co.,
Fa~.,
M.,
A a~i'
J.""
ay,
Net demand
depoeita
1933 ... . . . $304.336
1033 .. .. .. 395,983
1033 .... .. 396,783
1033 .... .. 389,177
1033 .... .. 400,597
1033 .... .. 436,027
1933 .... .. 466,198
1033 ..... . 494,176
1034 ..... . 505,909
1034 .... .. 532,717
1034 .... .. 535,355
1084 .. .. .. 523,307
1034 . . . . . . 510,000
Reserve City Banks
Time Net demand
deposits depoeita
$186,596 $191,847
186,405
192,396
191,055
196,040
190,931
101,302
187,508
195,145
186,936
210,987
187,947
228,265
186,687
240,971
192,214
249,091
195,746
261,770
192,766
263,291
102,548
257,838
102,830
253,752
Country Banks
Time Net demand Time
deposita deposits deposita
$113,101 $202,480
$73,495
113,390
203,587
73,015
m,908
200,743
77,147
112,665
197,875
78,266
110,146
205,452
77,362
100,264
225,040
77,672
106,914
237,933
81,033
106,1 32
253,205
80,555
108,317
256,818
83,807
110,348
270,947
85,398
108,385
272,064
84,381
107,015
205,550
84,933
108,140
202,338
84,084
Acceptance
Market
Acceptances executed by banks in the
Eleventh District and outstanding on
Mar 31, which amounted to $166,367
sho.wed a further declme from the previous month and reo
mamed at a level considerably below that of a year
The amoun.t reported on April 30 was $275,675 and onafh~
correspondmg date last year it was $1,127,701. Of the total
reported on the last day of May, $47,437 represented ac.
ceptances based on import and export transactions a d
$118,930 ~as t?e amount of acceptances executed a~ai:st
the domestIc shIpment and storage of goods.
There W?S a furt~er increase of 0.9 per
cent durmg ~ay m the savings deposits
. .
of .128 reportmg banks in the Eleventh
DIstrICt. These depOSIts at the close of the month t t l ed
$138,590,627, as compared with $137,4,10,775 on Ap~t 3 O,
and .$ 133,762,486 on the last day of May, 1933. The ex.
pan~IOn ov~r a year ago amounted to 3.6 per cent, this com.
pan~on bemg somewhat more favorable than that a month
earlIer.
Savinf5,s
Depos~ts
___-----------------------------------------------J
SAVINGS DEPOSITS
........ ..... .. ..
~caumont
Et~as ........ .... .. .. ....
F"rt'W~rt "" """"'" ..
Galveston h ..... . . ..... ....
Rouston .. ............. ..
Port Arth'~ ....... .. .... . ..
San Anton'···· .. ·· .... · · ·
Shreve rtIO ..... .. ........
Wac po . . .... ..... . ....
Wichlta 'Fn .. .. ... ... .... ..
I;U ethers Us .......... ....
.. ...............
Number of
reporting
banks
3
O·
2
4
4
11·
2
7·
3
3
3
77·
Number of
savings
depositors
8,250
74,558
10,720
32,980
10,077
60,684
5,015
17,8S1
21,530
10,493
5,OSI
52,027
Apr1l30, 1034
May 31, 1033
May 31,1034
Amount of
savings
depoeits
$ 3,273,263
24,244,430
4,521,180
10,005,319
9,055,561
28,082,717
I,S54,525
14,S82,110
1O,07S,S55
6,8S6,202
2,762,619
23,303,931
Amount of
Number of
savin~
savings
dOPClIllta
S 3,048,132
24,182,301
3,384,323
10,777,917
9,754,547
29,304,049
1,932,322
13,65 1,994
S,979,080
6,579,835
2,332,052
20,S35,334
depositors
7,050
73,020
10,213
33,099
16,444
05,997
4,363
10,358
21,S40
10,427
6,537
50,750
Number of
savings
depositors
8,229
74,384
10,655
32,047
10,655
60,440
4,968
17,647
21,517
10,50S
5,691
52,342
Poroentage ohange
ovor year In
savings deposita
+ 7.4
+ .3
+33 .6
- 6.3
- 1.0
- 4 .2
- 4.0
+ S.6
+12 .2
+ 5 .5
+18.4
+11.S
--
+ 3.6
$133,762,486
316,007
$13S,590,627
12S
323,10S
Total. ... .........
'Only S banks in Dallas, 10 in Houston, 6 in San Antonio, and 70 in " All otbers" reported tbe number of savings depositors.
n;,r~\arged customcrs on prime commercial papor suob as tbat
nolV eligible for
nato IScount uuder tho Fedcral Reserve Aet ...... .. . . . . ........... . .......... .
ltat chargcd on loans to othcr banks scoured by bills rcooivable ... . ..... . .... . ... .
EI Paso
Fort Wortb
6
6-S
5- 6
2-6
6- 0
". on Iqans scoured by prime stook exchange or other eurrent oollateral (not
Ibeludmg leans plaoed in other markets through oorrespondent banks) :
~i:e~nd .. . .. ..... .. . . .. . ............ . ... . .... ····: · ::::::::::::: :: :
5-0
4* S
4-7
6- 0
6- S
6- S
8
6-S
5-8
5-S
6- S
6-S
R:~ chargcd o~ ~o~odiiy 'p~p';; 8~d~;cd by' ;.-~r~ho~~~·;~~ipis', cite .. ..•... .••····
~n
cattlo loans . .. ....... . ................ · .. ·· · ...... · .. · .......... .... ·
1 ~-7
321,9S3
$137,410,775
.avln~
Peroentage obange
ovor montb In
savings deposita
+ 2.5
+ .7
+ 2.1
+ .3
+ .2
+1.3
.8
+1.1
- 1.2
+ .9
- 1.2
+ 1 .6
-
-+
.9
Prevailing ratee:
JUNE DISCOUNT RATES
Dallas
depoelta
$ 3,194,372
24,004,750
4,420,107
10,065,624
9,634,002
27,728,101
I,S09,176
14,607,937
10,197,614
5,834,577
2,797,17S
22,027,677
Amount of
Heuston
San Antonio
Waco
6- 7
4*6
4- 6
6
3-0
5-7
5-7
3- 7
7- 10
6-S
6-S
6-8
6-8
6-S
6- 8
5- 6
6-5~
S
--- -----------------------------------------------------~
INDUSTRY
.
With the exceptIOn of the receipts 0 £
cottonseed, which were somewhat larger
ap.
than those in the previous mon~h, and
c toxunately the same as in May 1933, operatIOns at
t~ tonseed oil mills in Texas during the past month declined
of a level far below the average for that month. Crushings
th seed and the production of all products reflected larger
n seasonal declines as compared with April, and they
Ce r~ also materially below those a year ago. With one ex·
Se Phon, the output of linters operations during the current
hei~~' Aug~st 1 through May 31, continued considerably
ing those m the correspondmg ten months of the preced.
season.
Cotton see d
P
roducts
\V:
The trend of activities during May at cottonseed oil mills
located throughout the United States was similar to that in
Texas. Receipts of seed at these mills reflected a decline as
compared with May a year ago but they were greater than
those a month earlier. The production of all products and
the crushings of seed showed. large declines as compared
with both the previous month and the same month of 1933
Operations during the current season remained below thos~
of the previous season with the exception of linters. Stocks
of cottonseed products on hand May 31 were less than those
a month earlier at both Texas and United States mills. Inventories of cake and meal, hulls, and linters at Texas mills
on May 31 were smaller than on the same date a year ago,
~------------------------~~==~~~==~------------------------------------
6
MONTHLY BUSINESS REVIEW
-------------------------------------------------------------------------------------------------------------while at United States mills stocks of cake and meal were
larger.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States
August 1 to May 31
August 1 to May 31
This season Last season This season Last season
Cottonseed recolved at mills
(tons) .................... .
1,309,725
1,423,130
4,062,803
4,440,916
Cottonseed orushed (tons) .... .
1,200,634
1,449,649
3,964,204
4,202,160
Cottonseed on hand May 31
(tons) ........... . '" ... . . .
117,077
148,749
318,980
447.760
Crudo oil produced (pounds) .. . 382,214,240 441,820,2301,241,408,3001,389,266,468
602,351
Cake and meal produoed (tons)
668,611
1,801,370
1,041,016
Hulls produoed (tons) .... . ... .
433,706
1,056,102
363,176
1,221,888
Linters produced (running
bales) ................... ..
172,868
222,010
769,491
081,681
Stooks on hand Mny 31:
Crudo oil (pounds) ......... .. 24,905,100 16,014,000 56,382,174 53,557,059
Cake and moal (tons) ........•
205,009
219,748
47,268
54,146
57,201 .
87,029
Hulls (tons) ...... ... ....... .
23,803
33,045
Linters (running bales) ......•.
133,013
172,295
33,045
44,033
Textile
Milling
Activities at cotton textile mills in the
United States evidenced a contrary to
seasonal increase during Mayas measured by the consumption of cotton. While a substantial
decline was registered as compared with the corresponding
month of 1933, the reduction is minimized when it is recalled that operations in May last year were on an unusually
high level. The 519,765 bales of cotton consumed last month
compares with a consumption of 512,703 bales in April,
and 620,651 bales in May, 1933. Notwithstanding the large
decline in Mayas compared with a year ago, consumption
of cotton during the current season, which aggregated
4,977,772 bales on May 31, continued in excess of that in
the corresponding ten months of the previous season. Stocks
of raw cotton held by consuming establishments on May 31
were smaller than a month earlier, but remained above
those on the same date of 1933.
The consumption of cotton at reporting Texas textile
mills during May evidenced a decline as compared with
both the previous month and the same month a year ago.
On the other hand the production of cloth, while showing a
smaller volume than in May, 1933, was in excess of that
in April. Orders for finished products held on May 31 were
smaller than a month earlier, and materially below those
a year ago. Stocks of cloth on hand at the end of the month
were greater than on either comparative date.
season. Receipts of cotton at these ports during May r~'
fleeted further seasonal declines, and they were also materI'
ally below those in May a year ago . Stocks of lint held on
May 31 were seasonally smaller than a month earlier at
both ports, but at Galveston they were greater than the
holdings on May 31 last year.
Total foreign exports of cotton from the United States
showed a further large decline during May. Shipments wer
considerably smaller than those in the previous month, an
noticeably below the exports in May, 1933. There ",:er~
284,,764 bales of cotton exported during May, as agaJllS
386,594 bales in April, and 591,647 bales in the like m?nt~
of 1933. Shipments during the 1933-34, season remaJlle
considerably below those in the corresponding ten monthi
of the previous season. Although there is usually a gene.r a
slowing-down in the takings of American cotton by fore~g/l
countries at this season, the large declines in exports dur~g
the past two months are attributable only in part to t IS
factor .
d
-
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
May
Receipts .... . .......... . ... .
Exports .............•.... •..
Stooks, May 31. .... . .. . .... .
Mny
1034
84,066
95,001
1933
102,155
171,780
August 1 to May 31
This season Last senso n
2 109 609
1:050:905
047,041
2,004,230
1,88 8,7 4
27
6, 07
l
-
COTTON-GALVESTON STOCK STATEMENT
(Bales)
May 31,
For Great Britain ............ . ............... . ..... ..
For Franoo .......... . ............ . ................ ..
For other Coroign ports ....... . ........... . ..... . .... ..
For cOll8twiso ports ...... . ........• . ..................
In oompresses and dopots ........... . ................ ..
1984
2,000
3,000
28,700
1.000
012,941
Total. ............................. . ... .
647,041
May 31,
1033
4,000
2,000
23,000
2,500
590,174
- .:=::=627,674
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
----------------~----------------August 1 to Mny 31
May
Receipts ................. . .. .
Exports .................... .
Stooks, May 31. .... . ...... . .
May
1934
23,756
93,227
193a
103,411
230,521
This soaSOll Lnst senson
2,190,055
2,304,238
1,003,712
2,7~~'~~~
2,220'01
1,5, 2
COTTON CONSUMED AND ON HAND
(Bales)
May
Cotton-growing states:
Cotton oonsumed.... . ... ...
On hand May 31 inConsuming establishments.
Public storago and comprosses .. . ............ .
United States:
Cotton consumed...... .....
On hnnd May 31 inConsuming establisbments.
Public storage and oompresses ....... . ....... .
May
1934
1983
416,911
513,954
August 1 to May 31
This season Last season
1,104,000
6,240,003
020,651
4,036,770
1,008,945
519,765
3,968,070
0,851,011
4,977,772
4,830,403
1,421,428
1,392,209
0,570,664
7,328,146
Exports of cotton through the ports of
Houston and Galveston remained at a
very low level during May notwithstanding the fact that an increase over the previous month was
reflected at Galveston. Shipments were also materially below
those in May, 1933. Despite the large declines that have
been witnessed during the past two months, however, exports
during the current cotton season continue in greater volume
than those in the corresponding ten months of the previous
Cotton
Movements
--
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORT8-(Bales)
----------------------------------------~~-.--August 1 to Mny 81
Tbis soason LlI8t SCllSon
Receipts ............................................ .
Exports: Unitro Kingdom ........................... .
Frnnco .................................... .
Italy ............................ . ..... . ... .
Gormany .......... .. ... . .................. .
Other Europe .............................. .
an ...... . ............................. ..
Al otbor oountries .......................... .
Jar
;rt~:~sC~~~~~r~[ltsU~it.id 'Sta't~ 'po;ts; M~y' ai:: ::: ::::::
7,411,367
1,100,973
091,000
001984
1,227:650
934,000
1,637,020
506,740
6, 709,300
2,833,265
8,327,2~g
1,26258'~60
7,
601,272
1,~~~'~~~
'205
1,445 h15
0 ' J
7'817121'~~0
3,
'
SPOT COTTON PRICES-(Middllng Basis)
(Cents per peund)
---=
------------------------------------------------Juno 15,
Mny, 1934
Higb
NowYork ....•........ . .................
New Orleans ........................... ..
Dallll8 ................................. .
Houston ................................ .
Galv08ton .............................. .
Low
11.70
11.65
11.25
11.65
11.70
10 . 75
10.85
10.45
10.85
10 .85
1034
12.15
12.07
11.05
12.10
12.05
\~
----------------------------------~~~~~~~~~~~~-=~==~~~---------------------------------
__________________________
M_O_N_T_H_L_y_B_VSI_N_E_S_S_R_E_V_I_E_W
__
______________________~7
Petroleum
The output of crude oil in this district
.
during May was appreciably larger than
I~ the preceding month, but because of the marked expanSion which occurred in this month last year there was a sizable reduction as compared with a year ago. The month's
~otal yield amounted to 34,157,350 barrels, as aga~nst 31,67,000 barrels in April, and 44,730,500 barrels In May,
~933. Daily average production rose from 1,058,900 barrels
In .April to 1,101,850 barrels in the succeeding month, this
being the fourth consecutive monthly increase that has been
registered. A moderate decline in drilling activity was reported, and the initial output of producing wells completed
~n May amounted to 2,504.,760 barrels, as compared with
,734,842 barrels in the previous month.
Daily yield in Texas during May amounted to 1,030,200
bar~'els, which compares with 987,700 barrels in the precedIng month, and 1,379,719 barrels in the same month last
year. The larger increases over April were shown in the
East Texas and Gulf Coastal areas, and a small decline
OCcurred in South Texas. The daily production of fields in
New Mexico continued its upward trend in May, while that
of North Louisiana reflected a further decline.
MAY DRILLING RESULTS
North Toxll8 ... . .. " ... .. ..
Contral West Texll8 .. ..... . .
Enst Texas .. . ... . .. . . . .. . .
South Texas . . ..... . . . .... .
Toxos Coastal.. ..... . ......
Total Texas ... . ..•
Now Mexico .. . .. . .........
North Louisiana ..... . . .. ...
May totals, district . . . . .. ...
April totals, district . .. .. .. ..
Complctlona
248
87
336
112
83
0118
..
Producera
149
49
323
40
68
Fallures
88
34
11
54
20
1
1
1
13
wells
11
4
2
0
Initial
production
35,783
140,687
2,256,465
18,370
51,205
- -----866 -633 - - -207 2,502,510
- 26
6
12
7
26
- 650
-
- 800
-
-28-
714
080
24
1,106
1,066
- 221
-
----2,604,760
2,734,842
261
CRUDE OIL PRICES
ToxlI8 Coastal (34 gr. and ahove) ........ . .. . .. .. ..... . .
North Texas (40 rand ahovo) . . ... . . ..... . .. . .. .... ..
North Louisiano 40 gr. and above) .......... . ..........
'Flat prico.
~----------------------------------------------~
June 8,
1034
$1 .12
1.03
1.08
June 9,
1933
$ .30'
.26'
.25"
..
..
(011 statistics compiled hy Tho 011 Woekly, Houston, Texas)
OIL PRODUOTION-(Barrols)
Inorease or decrease over
~orth TOxlI8 . .. . ... . . .. . .... .
E::r~1 West TOxlI8 .. . .. ... . . .
S h eXII8 .. .. ...... .. .... ..
Tout TexlI8 .... . ........ .. . .
eXII8 COll8tal.. .. .. . ..... ... .
May, 1034
Total
Daily Avg.
3,551,050
114.550
5.287,050
170,550
16,276.550
525,050
1,478,700
47,700
172,350
5,342,850
April,1034
Total
Daily Avg.
+ 108,550
+ 2,800
+ 340,050
+ 5,650
+1,278,050
+25,100
+ 16,200
- 1,050
+ 472,350
+10,000
706,700
1,030,200
45,060
25,700
+2,305,200
+ 75,950
+
0,200
42,500
:): 1,000
550
Total District.. . . . . .. 34,157,350
1,101,850
+2,300,350
+42,060
/II
Total TexlI8 . . ....... 31,036,200
/II ew Mexico .. .. . . .. .. . . . .. . . 1,424,450
orth Louisiana. . .. . ... ......
Building
Building permits issued at principal
cities in this district during May totaled
$2,055,395, which compares with $1,006,538 in the previous
month, and $1,068,34.2 in the same month a year ago. While
the gre_ater part of the large increase over both months
occurred at Houston, most of the other reporting cities also
participated in the gain. The number of construction permits issued during May, though slightly in excess of the
April figure, was smaller than in the corresponding month
last year.
BUILDING PERMITS
January 1 through May 31
Percentage ohange
A
Porcontage change 1_...:""p",ri;:,.I',:c10",,34'--_1 Percontago chango 1---~10;;':34?!..:..:::;-:~!.!:!;~10;";3:';'8---1
valuation ovor
period
_~~='---·I_-"'-7'-'c.::,:.;:.o--1 valuation over No. Valuation valu;:'~~~hovor
No
Valuation
N
Valuation
_N . _V_ol_ua_ti_on N_o_ Valuation I____y_co_r___- I - - _o_
__ .
.I- -_-7-3-.6---I-.:cc:.·'--0I'I-S...=;I"'43"',Oc::.30·1-.:cc::.o·'-83 $ 60,214
+106.6
743,140
- 63 .6
10 S 13,018
26 $ 37,838
~U
~~ $ g~:m
13 . 1
340
270,046
420
60,712
68.6
73
68,336
08
111,656
+202.1
105
16,233
+208 .0
414
100,710
380
68,023
+ 07 . 1
00
46,Oll
07
16,630
+1206
16
25,700
- 36 .7
ll6
135,854
06
030,228
+ 13.8
32
16,500
18
7,230
+ 3'8
400
202,786
+ 26.3
1,037
1,068,489 1,640
86,110
+ 41.6
446
266,029
604
246,714
+208:6
42
18,660
+ 63 .2
184
120,520
163
1,061,870
- 70.0
35
28,413
27
7,128
_ 70 .3
70
03,800
+ 10.6
307
316,070
4ll
168,378
5 .3
78
76,250
87
266,356
_ 12 .3
131
56,262
- 48 .8
687
177,321
420
882,333
+164.0
134
28,205
100
32,264
+626.2
109
262,846
:):380.0
904
2,240,715
862
28,012
+ll6.7
2ll 1,263,100
207
173,038
+137 7
42
13,810
3.8
106
62,368
184
467,001
- 32.4
37
14,340
46
6,032
_ 31 . 0
'
130
48,122
:): 16.3
656
308,706
003
130,002
+169.0
140
66,066
166
82,100
28
00032
46 9
742
337,086
402
137,614
+ 10 .2
212
132,661
141
41,668
+218.4
228
80'387
- 68:4
100
163,048
133
36,ll3
+ 72 . 7
22
33,440
26
32,662
+ 2.7
0'100
+241.1
130
60,656
133
47
31,067
10
17,237
+ 80 .2
65
,
+ 13 .4
$4,866,618
6,803 $6,607,376 6,ll8
+104 .2
_ _- -I,560 -S1,006,638
1,675 $2,056,305 1,660 $1,068,842
+ 02.4
May, 1034
Amarillo . .... . .
~ustin .. ..... . .
Cooumont . . ... .
D~Ir.us Christi ..
EIP:,······ ···
F two .. .. .. ..
GOI
orth ....
Fl voston . ... . ..
P ouston .... .. . .
ort Arthur ... .
San Antonio
SWhrevcport . .' .' : :
aco
Wichiiti ·Ftil~.' : :
_
Total. ...
May,1083
=
While a further curtailment in prod~c.
tion was made at Portland cement mIlls
~~ Texas during May, a substantial gain in shipments was
o fleeted and they were also larger than a yea!' ago. Total
bUtput amounted to 297,000 barrels, as agamst 354.,000
Sa~rels in April, and 333,000 barrels in May last year.
hlprnents which totaled 356000 barrels, were 12.7 per
~bnt large; than in the previo~s month, and 11.3 per c~nt
sh ov~ those made in the same month la~t year. Inventones,
to OWIng a decline of 9.7 per cent dunng May, amounted
557,000 barrels on the last day of the month as compared
Cement
-
+
+
with 678,000 barrels a year ago.
PRODUCTION, SIDPMENTS. AND STOCKS OF PORTLAND CEMENT
(In thousands of harrols)
207
366
Porcentage
ohango from
May
April
1033
1034
-10 .8 -16.1
+11.3 +12 . 7
567
-17 .8 -
May
1034
Production at Texll8 mills ....•
Shlpmcnts from Toxas mills . . ..
Stocks at end of month at Texll8
mills .... . .. . · · · ···· .... ·· .
0.7
January 1
through
May 31,
1034
1,660
1,565
Porcontage
ohange over
year
+ 1.8
1.6
+
---------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW
--------------------------------------------------------------------------------------------------8
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board. June 23, 1984)
Industrial production increased slightly in May, while
factory employment and payrolls showed little change. The
general level of wholesale prices, after remaining practically
unchanged since the middle of February, advanced sharply
in the middle of June, reflecting chiefly increases in the
prices of livestock and livestock products.
PRODUCTION AND EMPLOYMENT
Industrial production, as measured by the Board's season·
ally adjusted index, advanced from 86 per cent.of the 1923·
1925 average in April to 87 per cent in May, as compared
with a recent low level of 72 last November. Activity at
steel mills increased further from 54. per cent of capacity in
April to 58 per cent in May, while output of automobiles
showed a decline. Lumber production continued at about
one·third the 1923·1925 level. In the textile industries output
declined somewhat, partly as a consequence of seasonal
development. At mines coal production showed little change
in volume, while output of petroleum continued to increase.
In the first three weeks of June activity at steel mills con·
tinued at about the May level, although a decline is usual
at this season. Maintenance of activity reflected in part,
according to trade reports, considerable stocking of steel.
Output of automobiles declined somewhat, as is usual at
this season. Employment in factories, which usually declines
slightly between the middle of April and the middle of May,
showed little change, while employment on the railroads,
in agriculture, and in the construction industry increased,
as is usual at this season. Increased employment was shown
at manufacturing establishments producing durable goods,
such as iron and steel and non·ferrous metals, while em·
ployme~t declined at establishments producing non·durable
manufactures, such as textiles and their products. Value of
construction contracts awarded, as reported by the F. W.
Dodge Corporation has shown a decline in the spring
months, reflecting a reduction in the volume of contracts
for public projects. The volume of construction work
actually under way has increased as work has progressed
on contracts previously awarded. Department of Agriculture
estimates based on June 1 conditions indicated unusually
small crops of winter wheat and rye and exceptionally poor
conditions for spring wheat, oats, hay, and pastures, largely
as a consequence of a prolonged drouth. The winter wheat
crop was estimated at 400 million bushels as compared
with a five year average of 630 million bushels and an eX'
ceptionally small crop of 350 million bushels last seas on.
Rains in early June somewhat improved prospects for
forage and grain crops not already matured.
DISTRIBUTION
Total freight traffic increased in May by more than the
usual seasonal amount, reflecting in considerable part ~
larger volume of shipments of miscellaneous products. A
department stores the value of sales showed an increase as
is usual at this season.
COMMODITY PRICES
During May and the first three weeks of June wholes~~e
prices of individual farm products fluctuated widely, whl e
prices of most other commodities showed little change.
Wheat, after advancing rapidly during May declined. con
siderably in the first three weeks of June. Cotton contlllUf
to advance in the early part of June. In the middle of ye
month hog prices increased sharply from recent low leve s.
Automobile prices were reduced in the early part of June,
and copper prices advanced.
d
BANK CREDIT
During May and the first half of June there was little
change in the volume of reserve bank credit outstanding ad
a consequence of expenditure by the Treasury of cash al~
deposits with the Federal reserve banks and a growtiI In
I've
the country's monetary gold stock. Member ban k res e
balances advanced further to a level $1,800,000,000 in ;~.
cess of legal requirements. In the week ending June t'
~owever~ excess r.eserves dropped t~ $1,675,000,000, reflek~
Ing an Increase In Treasury depOSIts at the reserve ban..
in connection with June 15 tax receipts and sales of Gove!n
ment securities. Total loans and investments of reportI~z
member banks increased by $80,000,000 between May t5
and June 13, reflecting a growth in holdings of inve.strn en n
other than United States Government securities and III ope
CUS'
market loans to brokers and dealers, while loans to
t
ou
tomers declined. Net demand deposits increased by ah n
$4'()0,000,000 during the period. Money rates in the oper.
market continued at low levels. The rate on prime comrnest
cial paper declined to %.1 per cent in June, the lowe
figure on record.
@FedFRASER