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Monthly B u s iness Review
OFT HE
FEDERAL RESERVE BANK
OF
DALLAS
v:r~U:m:e::2=3=,=N=0=.=4==========================D=a=I=la=s=,=T=e=x=as=,=J=u=n=e=I=,=1=9=3=8========~===T=h=i8=C=O=PY==i8=r=e=le=aB=ed==f=or==pu~b=-=~==a=y=3=1
lication in morning: paver&-
=============================================================
DISTRI'CT SUMMARY
f Business at wholesale and retail in the Eleventh District,
a teir allowance for seasonal influences, declined ih April
an Was lower than in the same month of 1937. Preliminary
rep
. d •
orts In icate that department store sales in. the first two
we~ks in ~ay were abo~t 8 per cent under those in that
PhtIod last year. The value of construction contracts awarded
owed a moderate decrease from the heavy ~arch volume,
~t Was nearly one-third greater than a year ago. The valuhon of building permits issued at principal cities was
arger than in either comparative month. The output of
petMleum continued to increase in April and the first week
l~ I a~ but declined in the subsequent week to the lowest
Ve smce January.
BUSINESS
"
A ~e value of department store sales in this district during
Pdl~ Was about the same as that in the preceding month
m Ap.ril, 1937. However, when allowance is made for
usual Increase in consumer buying prior to Easter, the
v~ ume of business was somewhat smaller than in either
o tkhe two comparative months. Reflecting this decline, this
h
t an'
9 s a d'Justed index of department store sales dropped
° X,O pel' cent of the 1923-1925 average, which is the lowest gure recorded in nearly two years. The April figure
compares with 113.8 per cent in January this year, 104•.3
bel' ~ent in ~arch, and 106.0 per cent in April last year.
espIte the recent decline in business sales durin/! the first
f OUr
h
,
~
i hmont s of the year were 1.9 per cent larger than those
n t e comparable period of 1937.
W Sto~ks of merchandise at reporting department stores
ctre Increased further by 1.6 per cent in April, but at the
Aos~ of the month they were 4.7 per cent smaller than on
r~nl 3~, 1937, when stocks were higher than on any cori \ondmg date in recent years. The rate of stock turnover
B~
first ~our months of 1938 was higher than during any
rc10 ar p~nod for which data are available.
.
A 'lllectlOns on open accounts increased seasonally durmg
pPl'l , but continued in smaller volume than a year ago.
AaYt;l1 ents on installment accounts were about the same as in
pn last year.
b
i
iliI
\e
re FOll.owing some improvement in
~arch,
the business of
mportIng wholesale trade firms in this district declined
paord
re th~n seasonally in April. Decreases in sales as com-
WIth the preceding month occurred in all repor ting
lin
pr es except electrical goods, but the declines were most
A onounced in dry goods and in machinery and equipment.
ce~~OtPared with April, 1937, combined sales were 12 per
per ower, which compares with an average decline of 9
"tio
for the first four months of the year. The distriburesn :nd~rugs was in slightly larger volume than in the corPO~in l~g month last year, but the decreases in other reper g hnes ranged from 11 per cent for groceries to 36
war cent for machinery and equipment. Inventories of hardago e nd drug firms continued at a higher level than a year
firn: ut those of dry goods, electrical supply and grocery
ing were substantially lower. Collections in most reportThmes showed a decline during the month.
orea e 1umber of commercial failures in this district inBe d rom March to April, but the total indebtedness was
cer
b
i·
smaller, indicating that the failures were confined principally to the smaller firms. According to Dun and Bradstreet, Incorporated, there were 28 insolvencies during the
month with liabilities of $254,000, as compared with 19
failures in ~arch owing $313,000, and 16 defaulting firms
in April last year with an indebtedness of $344,000.
INDUSTRY
The value of new construction work begun in the Eleventh
District during April, although 18 per cent below the heavy
volume in ~arch, was 29 per cent above that in the same
month of 1937. The increase over last year, however, was ac·
counted for by the expansion in public works, as awards for
other classes of construction were in smaller volume than in
April, 1937. From the accompanying chart it will be noted
that residential building in this district showed an upward
trend from the end of 1934 to April, 1937, the total for the
latter month being the largest for any month since October,
1929. ~lthough there was a substantial decline in awards
during the last eight months of 1937, they have increased
sharply since the first of this year and in April the volume
was only 10 per cent under the peak reached in the same
month last year.
The valuation of building permits issued during April at
fourteen principal cities in the Eleventh District increased
for the third consecutive month and exceeded the total for
April last year by 27 per cent. The value of permits issued
during the first four months of 1938 was 11 per cent greater
than in the corresponding period of 1937.
Production of petroleum in the Eleventh District continued to expand during April with the result that daily
average production during the month, amounting to 1,521,815 barrels, was about 2 per cent higher than in ~arch and
was only 2 per cent under the average for April last year.
However, in the second week of ~ay the Texas Railroad
Commission ordered a shutdown of all fields in the State
each Saturday during the remainder of the month, in addition to the Sunday shutdowns which were already in effect.
In consequence, the daily average output in this district declined to 1,4.04,000 barrels in the week ended ~ay 14, which
was the lowest weekly figure recorded since the last week in
January when the Sunday shutdowns in Texas were put into
effect. Drilling activity increased slightly during April, but
CONSTRUCT IO N CONTRACTS AWARDED
ELEVENTH FEDERAL RESERVE DISTRICT
M1LLIONS
40
or
COLLARS
MtLLIONS OF DOLLARS
40
30~-1-+--1-~-1--+--~~--t---~---t---i----t---l~
I--I-----l----+----j-----,I---_j___ -h,-----< 20
If-ll '---J
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
10
2
MONTHLY BUSINESS REVIEW
was lower than a year ago. Completions averaged 38.4 wells
daily during the four weeks ended April 23, as compared
with 37.5 wells in the preceding period and 45.6 wells in the
corresponding period of 1937.
Manufacturers of cotton textiles in the United States curtailed operations by considerably more than the usual seasonal amount during April in an effort to bring production
in closer alignment with sales, which apparently have been
below output for several months. Actual consumption of raw
cotton during April amounted to only 414,,392 bales, which
was about one-fifth smaller than the amount utilized in
March and 42 per cent below consumption in April last
year. The percentage decline from a year ago in April is
considerably larger than the average decline of 26 per cent
shown for the first nine months of the current season. Total
consumption so far this season amounted to 4,438,159 bales
as compared with 6,016,882 bales in the same period of the
WHOLESALE AND RETAIL TRADE STATISTICS
r~---- Percentage change in:
,Ratio April colleetions
Stocks °
to accounts outstand·
Net sales
~------~
ingAprill
rApril, 1938 from
Jan. 1 to
April, 1938, from r,------~
April, Maroh, Apr. 30, 1938 April, Maroh,
Install1937
19S8
from 1937
1937
19S8
Regular
ment
Retnil trode:
Department stores:
Total 11th Dist .. .3
.6
- 4 .7 +1.6
+ 1.9
Dallas ........ .. - 3. 5 - 2.5
.5.- .6
.5
Fort Worth ...... + 4.8 - 5.0
-3.4 +7.7
2.6
Houston ........ . +11.2 +17.6
5.3
- 2.3
3.0
San Antonio.. ... + .6 + 1.7
5.1
- 4.6
1.2
Other cities ...... - 8.4 - 4.3
- 1.8
- 12.7 + 2.0
Independent stores:t
Arizona . ........ - 16 .5 + 7.4
Oklahoma ....... - 6.0 + 4.2
New Mexico ..... -17.3 + 13 .0
Texas ........... - 0.2 - 3.2
Wholesale trade:t
Machinery, cquil>'
mcnt '" supplies
(exe'pteleetflcal) -35.6 -29. 0
- 36.5
Dry goods .... ... - 12 .2 -24.5
- 11.3
':":25: 6 + 1.8
- 8.0
- 5.1 - 2.2
Groceries ........ - 11 .3 - 2.2
+ 4.1
+12.0 - 2.0
Drugs ........... + .4 - 0.4
Hardware ....... -16.1 -14.2
- 8.2
+ 4.2 + 4.7
EleotrioalsllPplies -21.3 + 2.0
- 13 .4
- 17.5 - 8.7
tCompiled by United Stntes Department of Commerce. 'Stocka at
-+
+
+
+
+
40.6
40.5
36.5
41.0
43.0
40.8
+
+
14 .7
17 .6
10.8
iU
16.1
19.4
35.2
04.2
74 .6
66.4
104 .7
close of month.
INDEXES OF DEPARTMENT STORE SALES AND STOOKS
(1923-25 avernge - 100)
With seasonal adjustment
Total Eleventh Dist ..
Dallas ..............
Fort Worth ..........
Houston .............
San Antonio .........
Sales-April,
1038
1037
09.0 106 .0
105 .0 116.3
00.0
98.8
110 .5 103 .3 '
89.4
05.3
Without sDallonal adjustment
Stooka-April, v Sales-April,
1038
1937
1038
1937
66.9
69 .4 100.0 101.8
68.6
60 . 1 104 .8 100 .3
64.9
67.3
09 .0
93 .9
49.8
49 .2 111.6
99 .2
56.9
62 .4
92 . 1
93.4
Slocks-April, '
1038
1037
69 .6 ' 72.2
70.7
71.2
67 .5
70.0
51.3
50.7
60.3
66.1
VALUE OF CONSTRUCTION CONTRAOTS AWARDED
(In thousands of dollars)
April
April
March
January 1 to April 30
1938
1937
1038
1938
1037
Eleventh District-totn!... $ 16,207
5 12,617
5 19,763
5 54,455
5 40,942
Residcntial. ........ ...
4,888
5,431
4,759
16,209
18,105
All other. . . . . . . . . .. . . .
11,310
7,186
15,004
38,246
22,837
United States°-total.....
222,016
269,534
226,018
031,756
763,444
Residential. . . . . . . . . . . .
74,577
107,813
79,396
230,203
330,392
All other..............
147,439
161,721
147,522
533,241
502,364
'37 states east of the Roeky Mountain.s.
BOURCE: F. W. Dodge Corporation.
BUILDING PERMITS
Pereentage change
Percentage
valuation from
Jan. 1 to Apr. 30, 1038 change
, valuation
v
v
Valuatien Apr., 1937 Mar.,1938 No.
Valuation
from 1037
110 5 838,730
S 223,770 +125.0 - 54.2
+180 .5
421,501 - 35.5 - 33.1
741
2,225,180
+ 55.5
83,101 - 14.8 - 67 .2
516
486,187
+ 10.8
344,525
.6 - 30.0
1,200,004
610
+ 8.4
1,186,742
0.9 + 10 . 1 2,582
3,961,331
- 13 .3
160,879 + 34.4 + 52.5
282
435,130
.2
2,216,115
808,040 - 27.0 +225.0
808
- 35.4
177,662 + 50.8 - 70.5
1,145,563
657
+111.4
2,480,330 + 75.0 - 22.8 1,660
8,466,276
+ 16 . 1
75,255 - 41.8
6.8
492
688,451
+ 85.6
1,214,584
318,518 + 18 .9 + 2.9 1,120
- 31.4
1,300,482 +406.0 +400.7
2,556,340
555
+ 00.5
131,054 - 10. 1 + 66.7
224
348,772
.6
245
52,410 + 1.5 - 15 .5
188,586
+ 81.0
April,1938
No.
33
Amarillo .......
Austin ......... 177
Beaumont ...... 128
C~us Christi. . 163
D as· .. . ..... 700
78
El Paso .. . .....
Fort Worth ..... 214
Galveston .. .... 150
Houston ... . ... . 438
Port Arthur . ... 113
San Antonio .... 208
Shreveport ..... 170
Waco .... . .....
50
Wiehitn Falls ... 98
------
-
-
Total. ..... 2,828 57,046,087 + 27.0 +
°Includes Highland Park and Univoraily Park.
---
4.0 10,620 525,072,265
+ 10.9
preceding season and an average of 4,693,415 bales during
the corresponding period of the five seasons 1932-1937.
The decrease of 10 per cent in the consumption of cotton
at mills in Texas during the nine months of the current sea'
son was considerably smaller than that at all mills in the
United States. In April consumption showed declines of 1,1
per cent from March this year and 24, per cent from April
last year.
Foreign shipments of cotton from the United States during
April, although seasonally 11 per cent lower than in March.
were slightly larger than those in the corresponding month
last year. Exports to Japan, which have been in unusuallY
small volume this season, increased 24, per cent from March
to April, and exceeded those in April, 1937, by 8 per cent,
Takings by Great Britain continued larger than those a year
ago despite the accumulation of heavy stocks of raw cotton
and the sharp curtailment of activity at textile mills. Total
exports from the United States amounted to 377,250 bales ~s
compared with 4,25,888 bales in March and 373,158 bales In
April, 1937. During the first nine months of the current season, exports exceeded those in the same period of the 19361937 season by 6 per cent.
Exports of cotton from the ports of Houston and GalvesSTATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
, . - - - - Texas----v---United Stntos-----August 1 to AprH30
August 1 to April 30
This season
Last season
This season
Last season
Cottonseed reeeived at mills
4415,082
(tons) ................. . ...
1,665,740
005,477
6,308,166
4:280,027
Cottonseed erushed (tons) . ....
1,535,358
006,424
5,830,740
Cottonseed on hand AprIl 30
156,746
(tons) .....................
163,254
8,020
504,002
Produetion of preduets:
Crude oil (pounds) ... .. .... 452,476,343
257,966,828 1,707,603,640 1,202,718,6~~
1,023,6 0
Cake and menl (tons) ... .. ..
717,157
423,329
2,603,141
402,447
Hulls (tons) ...............
230,377
1,089 ,3~4
1,496,566
1,065,8
Linters hrunning bales) ......
320,890
105,688
1,348,218
Stooks on and April 30:
15438,650
Crude oil (pounds) . .. ... . ..
16,516,548
026,770
47,724,452
'101,422
Cake and meal (tons) .......
76,066
21,008
284,572
05,363
Hulls (tons) ...... .........
48,736
18,686
175,084
150,348
Lintcrs (running balos) . . . ...
123,569
28,005
553,652
SOURCE: Bureau of Cen.sus.
CONSUMPTION, STOCKS AND EXPORTS OF COTTON
(Bales)
August 1 to April 30
April
April
Maroh
This season Last .eason
1938
1037
1038
Consumption at:
2
06,220
Texas milia ........... .
0,356
12,362
10,551
86, 71
6,016,882
United States mills .... .
414,302
718,975
510,041
4,488,150
U.S. Stocks-end of month:
:.,.
In consuming estab'mts. 1,703,045
1,986,694
1,771,037
, ....
Public stg., compresses .. 10,485,880
4,214,825 10,056,051
EXQorls from U. S. to:
1,020'm
United Kingdom ..•....
78,540
64,406
1,472,650
101,380
632,
France ... ............ .
20,904
11,955
33,140
608,610
313,3090~
Italy ................ ..
28,073
38,415
42,181
438,063
574,
Germany ............. .
25,845
74,065
615,156
18,459
575,405
Other Europe ......... .
62,848
47,775
781,070
85,516
1,354,~~~
Japan ............... ..
120,006
112,217
554,084
07,605
285,
All other countries ..... .
39,144
24,325
47,598
478,578
Total exports. ...
377,250 --a7a.158
425,888
5,034,120
--4,762,361
REOEIPTS, EXPORTS, AND STOOKS OF 00l1TON AT 'I'HE PORTS OF
HOUSTON AND GALVESTON
(Balos)
August 1 to April!on
April
April
Mareh
1038
1037
1038
'I'his season Last. 072
Roceipts........ .. . . . . .. .
61,383
51,210
121,015
3,640,166
22,06~~'448
Exports. . . . . . . . . . . . . . . . .
201,832
148,653
226,266
2,608,227
"
Stoeks, end of month. . . .. 1,527,372
745,053
1,668,071
North Texas ................ .
West Texas ..................
East Texas ..... ........ .... .
South Texas ... ............. ;
Texas Coastal ................
Total Texas ...•..•
New Mexico .................
North Louisiana ..............
CRUDE OIL PRODUCTION
(Barrel a)
'0 dailY
April, 1938
InoreMo or deorw o 'fill'
average produoti~
'rotal
D~Avg, r
Mar .. 1938
Produetion
Pr uetion
Apr., 1037
+ 3,5S~
4,218,100
140,603
- 5,510
6,737,050
224,508
- 8,732
15,096,000
533,200
~1,777
6,062,450
232,082
+ 6,580
6,175,550
205,852
+ 5,774
~
+33,158
40,000,050
~3,674
1,336,335
+ 1,87 2
3,189,800
106,327
817
+
+
456
2,374,600
70,153
+ 7,220
.....:----+34,086
45,654,450
1,521,815
-35,637
---
Total distriet, .••.•
SOUROE: Tho Oil WookIy, Housten, TUlII.
---
--- ---
:j: ~:~~6
:j: ~:~~~
MONTHLY BUSINESS REVIEW
8
~on showed a gain of 36 per cent o:ver April last year, bringIng the total for the season to date to 2,608,227 bales, or 2
per cent under those in the same period last season. Receipts
these ports declined seasonally in April, but continued
arger than a year ago.
.
it
FINANCE
. Since the reduction in reserve requirements became effecti~ehodn April 16, member banks in the Eleventh District have
Wit rawn a portion of their reserve balances with the Fedhri l Reserve Bank and ha:ve increased substantially their
ances with other commercial banks. In the first half of
ay the reserve balances of member banks in this district
ilieraged $163,903,000; which was $17,145,000 lower than
e average in the first half of April. Nevertheless, excess
reser~es during the past month were at a higher level than at
any hme during the past year due to the fact that required
Es~rves declined considerably more than reserve balances.
shmates based on the latest available figures indicate that
$~cess reserves in the first half of May were approximately
fi 8,000,000 which was 41 per cent of required reserves. This
~ure compares with 29 per cent in the first half of April
w
earen. the higher reserve requirements were in effect. Total
DIng assets of the Federal Reserve Bank of Dallas
:mounted to $98,521,000 on May 15, which was about the
sarne ~s on, April 15, but $2,462,000 less than on the correPln~Ing date last year. Federal Reserve notes in actual cir~~ lon declined slightly between April 15 and May 15, and
e latter date were $11,725,000 lower than a year ago.
c.lhe loa~s of weekly reporting member banks in leading
lilebof thiS district, which had shown a steady decline from
O~~ ec~mber to the middle of April, increased about $2,1 ,000 In the subsequent three weeks. The expansion in
oans from April 20 to May 11 was chiefly in commercial,
M
:h
CONDITION OF THE FEDERAL RESERVE BANK
(In thoUBllnds of dollars)
May 15,
May 15,
Total cll8h
piscounta f~~~vosber'b'~""""" "" " ""' "
B~dustrial ndvanem
a .. . .. .. .. . .. .. .. .. .. .. .
tills bought in th"''' .... .. .. . . .. . ..... ..... ... ...
Tniled Slntos G 0 open market....................
olnl carning a:;;:nmcnt soourities.... . . . . .•.•. ...
~emhor bank r
. 'd' . .... . . . . . .. .. . ... ........ .
Cederal Rescrvcesc~ . CPOSlts. . . . . . . . . . .. . .. . .. •..
Ommitmcnta ton°nk I!, adotua! ciroulation. . . . . . . . . .
mom ustrlOt advances. . . . . . . . . .
1038
$205,530
320
80S
10
07,283
08.621
164.470
77.045
244
1037
S180,250
000
1,331
112
08,634
100.983
170.0S0
80.070
302
April 15,
10S8
$220,031
202
008
10
07,283
08.409
180.010
78.524
208
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
May 11.
May 12,
April 13.
TOlnllo.ns d '
1038
1037
1038
Total loans on lDvestmonts...... . .. . .. . .... . .... . U80,638
$482,154
$487.005
Commoroi~,'i ' d"
t': i· .. · .. ·: .. .. .... · ...... ·..
280.820
147.210
1.088
2.404
14.270
20.021
1.174
43.968
170.802
20.076
40,170
02,780
200.078
303.287
180.224
24.742
18~l460
214.307
120.681
1.008
2.613
10.580
20.013
806
38.800
187.380
28.105
52.173
112.886
154.522
305.266
120.571
7,077
178.724
620
220.801
146.232
2.070
2.113
14.406
20.110
250
44.011
174.888
88.708
49.458
110,048
177.525
306.784
130.000
24.010
175.653
Open mark~t ~a Us rIO and agrIoulturnlloans. .. ..•
LOans to broko per 'd"d' . . .. .. .. .. .. .. . . .. .. .. .. .
Other loans f rs an ~Iers in securities.... . . .. ..
llcnl estate 100; purohosmg or oarrying securities....
Loans to banksns.. .. .. .. .. .. .. .. . .. .. .. .. . .. .. .
U~·II other loans ... .... ···············.........•..
o nlled Statos G .. . .. .. .. . .. .. . .. . .. . .. .. .. .. .. .
obligations fullyovernmcnt dircct obligations. . . . . . . . •
~or SQ()uritios. ~uarantcnd by thc U. S. Govornment.
B crves with Fed" " RCa' ..... .. .... .. ...... .....
Dnlances with do or~. b orvo Bank............ .. ..
T~mand doposita mos~o anks......................
U"!,e d~lta . . . :-a ustedt......... . ........ . ...
1 nlled Btatos G ................... .. ...... .....
Bntorba)lk de(lOSi~ornmont deposits......... .... . . ..
orrowlUgs from Fed' ai '&8 '" .. ...... ....... ... .
. tInclud I
cr
orve Bank.......... ...
1'4000
Nono
Itoma reporfe3 ~~omohnd dc~ita other than intor,bank and United States Govnrnmont, less cash
- on and or In process of collcollOn.
GrOS1!
demand
v
Timo
GrOS1!
demand
April.
1930 ... .. ..... $ 927.028 $105.575 S527.743
109.683
578.110
April.
1037 .......... 1.043.756
December. 1037 .. . . . ..... 1.117.735 211.810 007.769
January. 1038 ... . . ... .. 1.116.242 215,115 608.048
February. 1038 ...... . . . . 1.113.910 216.344 606.222
218.188
001.354
March.
1038.. .. . .... 1.006.362
217.042
592.050
1038.. .. .. .... 1.074.855
April.
SAVINGS DEPOSITS
April 30. 1038
,
Timo
Gross
demand
Time
$107.500
108.562
110,003
110.174
110,587
121.102
120.896
$400.185
465.646
500.966
507.594
507.607
405.008
482.706
S88.015
01.121
94.817
05.941
06.757
07.086
07.046
Pomontago ehanf,0 in
, savings
deposits rom
r
Number of Number of Amount of r
April 30,
savings
Maroh 31.
savinI!"
ro{;rting
dopos.ts
1037
1038
dopositors
anks
Beaumont ...............
Dallas ..................
EI Paso .................
Fort Worth .. .... ........
Galvoston ...............
Houston .................
Port Arthur .. ...........
San Antonio ........ .. ...
Shreveport .. ............
Waeo .................. .
Wichita Falla .... .... .. ..
All othora ...............
0.580
00.304
16,028
37.820
18,247
71.665
5,086
28.818
24.450
0.222
7.137
59.379
3
8
2
3
4
10
2
5
3
3
3
70
S 3.770.410
20.000.451
8.084.540
13,228.428
11.306.464
28.605.613
2.645.854
17.672.768
11,208,002
4.830.330
3.528.680
20.004.604
+ 3.7
:j: 4.4
1.7
-
- 6 .1
+ 4.5
+ 4.7
.2
+ 3.0
+ .5
Abileno .................
Austin ..................
Beaumont ....... ........
Corsicana . ..............
Dallas ... .... ...........
EI Paso .. .......... .... .
Fort Worth ..............
Galveston ...............
Houston .................
Port Arthur . . ...........
Roswell .... ............ .
San Autonio .............
Shrevoport. .. ... ..... ...
Texarkona· .. .. ........ ..
Tucson ... . ....... .......
~~~~:::::::::::::::::::
Wiohita Falla ............
1037
S 8.333
33,805
20.018
3.595
242.752
27.333
00.240
20.487
218.662
0.845
3.882
73.009
46.588
0.357
12.535
15.562
14.377
16,654
over year
-
.2
+ 0.4
- 14.4
- 14.0
- 9.2
- 3 .8
- 15 .7
+ .3
- 8.0
- 3 .0
+ 2.8
- 12.4
- 10.8
-30.8
- 4 .5
-16.2
-14.4
+ 1.3
-+
1938
S 0.054
34.170
25.038
3.450
238.348
27.520
78.117
26.822
211,678
0.094
3.790
67.523
43.711
0,778
11.430
13.804
13.300
17.966
+
Pctg. ehanta
ovor mont
- 8. 2
+ 5.3
- 11 . 1
-11.0
-7.5
- 4.4
- 2.6
.0
- 5 .0
- 4.5
+ 5. 1
- 5.1
- 5.0
-33.8
+ 4.7
-5.5
- 8.1
- 6.1
-
1846.505
- 0.0
- 5.'
S870.974
Total. .......... S800.610
.Includes the figures of two banks in Texarkona. ArkonsllS,locatod In the Eighth Diltriet.
DISCOUNT RATES CHARGED BY MEMBER BANKS DURING MAY, 1938
Prevailing rntos:
Fort Worth
EIPaso
nate eharged
DallllS
na Fedoral ~~~~Ars Oll primo oommorcial paper such as is now eligible for rediseount under Iho
2}T8
17r6
6-0
ot . .... . . ........... .. . ... .. ... .. ..... . ............................ .
naIe oharged on I
3-6
6
te on 100118 soo o:\to ot.her banks socured by bills roocivablo . .. ... . .... .. ..... . ... . ... . ... .
in othor mork'ta
prlIDC stock oxohango or othnr curront collatoral (llot includillg loana plaeod
Domond e
rough eorrospondont banks):
.
6
3*8
Houston
San Antonio
Waco
3-6
6-7
6
4-6
3-6
3-7
5-6
4-7
6-8
7-8
tJ!
~te oha~:l°on~::::~':::: :: : ::: :: : : : : :: :: : : : : :: :: : : : :: : :::: :: :: :::: :: :: :: :: :: : : :::::: :
6-6
4-8
2-8
118 .. .... ..... . . . . ........... ....... ... . . . ..... ....... . .. ..... ......... ..
6-8
te on catllo loa omm Ity papor aocured by warohouse receipta, oto ......... ..• ..... .•.• .. ....
.3
--- --.4
373.136 SI60.071.140 +. 3.3
110
Total ...........
DEBITS TO INDIVIDUAL ACCOUNTS
(In thoUBllnds of dollars)
Petg. eh ango March
April
April
1938
S 8.314
35,070
28.048
3.071
220.358
20;307
76.054
20.574
201.130
0.547
3.092
64.068
41.510
6.476
11,977
13,045
12.301
10.873
+ .6
+ .2
-1.8
+ .7
.2
+ .4
+ 2.6
+ 1.5
+ 5.4
+ 4 .2
+1.7
+11.1
+ 8.3
-1.2
6-8
6-8
6-8
4-8
4*8
6-10
1~
6-8
,
6
6-8
3-8
8
MONTHLY BUSINESS REVIEW
4
were at the lowest level since August, 1936, while their balances with other banks were at the highest level on record.
Gross demand deposits held by member banks in this district declined for the fourth consecutive month, the daily
average in April being $4.2,900,000 below the record established last December, but $31,100,000 greater than the average in the corresponding month of 1937. Time deposits,
which had shown a steady expansion over the preceding
twelve months, declined slightly in April.
AGRICULTURE
Weather conditions during April and the first half of May
were unfavorable for agriculture in many sections of the
Eleventh District. Frequent and excessive rains in a considerable portion of the eastern half of the district have delayed planting operations and have caused extensive damage
to growing crops. Furthermore, wet soil and subnormal temperatures prevailing during a part of the period interfered
with seed germination, necessitating considerable replanting
of com and cotton in some areas. In portions of west and
northwest Texas and southern New Mexico, high winds have
depleted surface moisture.
Despite the unfavorable developments during April, fair
to good yields are still in prospect for grain crops in Texas.
The May 1 estimate of wheat production in Texas was placed
by the Department of Agriculture at 39,860,000 bushels,
which is the same as the April 1 estimate and 1,830,000
bushels lower than the 1937 harvest. The ten-year average
(1927-1936) production for the State amounted to 29,984,,000 bushels. The Department estimated that acreage ahandonment was 25 per cent of the total area seeded in the fall
of ~937. T.he heaviest abandonment occurred in the High
Plams sectIOn of the Texas Panhandle where moisture de·
ficiency, high winds, dust storms and green·bug infestation
have caused extensive damage. The indicated per acre yield
on the 3,986,000 acres remaining for harvest on May 1 was
10 bushels, which compares with a harvest of 10.6 bushels
per acre last year and an average per acre yield of 10.1
bushels. The estimated production of wheat in New Mexico
was reduced 50 per cent during April and the May 1 forecast of 1,904,000 bushels is considerably smaller than the
1937 production. The condition of oats on May 1 in Texas
and Oklahoma was considerably higher than on the same
date in 1937, ·but in Louisiana the condition was slightly
lower than a year ago.
Prospects fo r peaches and pecans were reduced materially
by freeze and wind damage during the early part of April.
The most serious damage apparently occurred in the western
part of the district. On May 1 the peach crop in Texas was
forecast at 1,080,000 bushels as compared with 1,392,000
bushels produced last year. Although the growth of spring
veg~ta~le ~rops was retarded somewhat during April, present mdIcatIOns are that a fair supply of all vegetables should
be available at about the usual time. Growing conditions
have been generally favorable for citrus fruits in Texas.
Livestock ranges in Texas showed a further improvement
during the past month and, due to the favorable moisture
conditions prevailing in most sections of the State, good to
excellent summer grazing is in prospect. In New Mexico and
southern Arizona the deficiency of moisture and low temperatures retarded the growth of range grass and caused
some shrinkage in livestock. Cattle and sheep in Texas have
made good gains with some stock already in marketable
flesh. According to the Department of Agriculture the move-
ment of cattle to northern feed lots will be relatively light
this year but shipments direct to market are expected to be
comparatively heavy. Marketings of sheep will likely be con'
siderably smaller than the record volume a year ago. Sales
of wool have been fairly active at prices considerably under
those prevailing in the spring of 1937.
In contrast with a sharp seasonal increase in the market·
ings of sheep, receipts of cattle and calves at the Fort Worth
market declined moderately from March to April, whereas
substantial increases usually occur at this time. As compared
with the heavy receipts in April last year, marketings of all
classes of livestock were much smaller. Livestock prices
showed unevenly lower trends durin g April and the first
week in May. In the subsequent week, however, the market
evidenced a stronger undertone as lighter supplies and a
broader demand brought about price increases of 25 to 50
cents per hundredweight on cattle and hogs.
Reflecting the larger receipts from marketings of livestock
and livestock products, cash income of farmers in this dis,
trict from the sale of principal farm products rose more than
seasonally in March and continued in excess of that a year
ago, notwithstanding the lower level of commodity prices
obtaining this year. Government benefit payments increased
from $4,200,000 in February to $14,,300,000 in March, but
the latter figure was 35 per cent less than in the same month
last year. This decline from a year ago in the amount of
Government payments more than offset the increase in reo
ceipts from the sale of farm products, with the result that
total receipts this March were 6 per cent smaller than in
March, 1937. Aggregate income during the first quarter of
1938 amounted to $156,000,000 which was about equal to
that in the same period of 1937.
Following slight increases between the middle of February and the middle of Mar ch, average prices received by
farmers in Texas decreased in the subsequent thirty days.
The index of farm prices in the United States declined further by 2 points during the month, the mid.April figure be'
ing 94 per cent of the pre-war ave'r age as compared with 130
per cent on the same date in 1937.
CASH FARM I NCOME FROM SALE OF PRINCIPAL FARM PRODuc'rs AND
GOVERNMENT BENEFIT PAYMEN'J'S
(In thousands of dollars)
, . - - - Mareh, 1938 - - - v - - - Totnl reeeipts - - - - - Reecip~. from:
GovernJon 1 to Morob 31
r-----~, mont
Maroh
Mareh r - '
-----Crops Livestook" payments
1938
1937
1938
1037
Arizona .. .... . S 2.474 S 1,057 S 222
S 4,653
$ 3.563
S 13,003 $ 1O,08~
!,ouiniann ... .. .
1-' 0" Mo<ico .. .
Oklnhcma .... .
7,315
1,713
18,168
31.915
17,868
0,808
29,042
87,448
37,04~
~
Total. . ... $18,151 $20,658 $14,340 $50,158 $62,674
"Includes reoeipts from solo of livestock and livestock produots.
SOURCE: United .States Dopartment of Agriculturo.
$156,059
$156,405
'rCX:l.t\, ., .. ..••
2,524
200
2,056
9,08 1
2,037
1,472
7,441
13,751
794
274
2,188
10,021
5.355
2,01 2
12,535
34,603
FORT WORTH LIVESTOCK RECEIPTS
(Number)
April
April
Change over
Marcb
Cattlo. . . . . ..•.. . ..• . ...
Calves. . . . . . . .. .. . . . •. . .
Hogs...... . .. .. ..... .. .
Sheep.. . ... .. .... . .. .. . .
1038
47,895
21,154
23,211
160,596
1937
62,128
25,226
34,962
277,101
-
yenr
14.233
4,072
11,751
110,505
1038
48.234
23,073
35,883
71,603
COMPARA'rrVE TOP LIVESl'OCI{ PRICES
(Dollars per hundredwoight)
April
April
1088
S9.60
7.75
9 .50
0 .50
8 .25
8.25
8 .35
1037
$10 .76
7 .50
11. 50
8.00
8.60
10 .00
12 .00
21,14
8,618
Chango ovor
month
_ 330
_ 1,010
_ 12,672
+04,033
Maroh
193B
$0. 25
8.25
9.50
6.00
8.25
8:90
8.60
MONTHLY BUSINESS REVIEW
JUNE 1, 1938
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
... ",..
IN DUSTRIAL PRODUCTION
40
,
,eo
'to
100
'00
I V
.
10
./
JVV\
\
\
'v./
-.Cl.
,.0
,00
90
80
Y
10
70
...
,
19"
1038
1"7
1938
Index of h .
for Bea P YSlca.1 ,:,olume of production, adjusted
B SOnal varIatIon, 1928-1925 average
100.
y months, January, 1984 to April, 1988 .
=
,':;, " .. -
FAOTORY EMPLOYMENT AND PAYROLLS
'r-
".,,
'"
...
,'0
'.1 0
EMPlDYMEy! ~
eo
lA
~Ij
"
V
r
00
\
t-'.J
f"./
70
..
,
~
100
90
\ .....
80
.-
PAYROLLS
10
.0
'0 "I D34
19"
1836
1937
-•
1938
Indexes of
b
adjustment ~um eO' employed and payrolls, without
age ==: 100 ~ seasonal variation, 1923-1925 aver1988. Index' y m?nths, J a nuary, 1984 to April,
es compIled by the United States Burcau
of Labor Statistics.
.......
... ""
DEPARTMENT STORE SALES
too r--
I
I
j.J
!..Jl
10
~-
vv
J
V
=
"
It
-
"""-to
,'."
I-
---,~
r~~[:fs
.......
..
to
~--l~~.~~
f--J
-<:>:
Wholesale prices of industrial commodities continued to decline from the middle of April
to the third week of May and prices of agricultural products also decreased somewhat
further. Steel scrap, copper, and rayon showed considerable declines and there were reductions in prices of some finished industrial produc~s. It was ann~unced that prices of most
finished steel products would be unchanged for third quarter dehvery.
BANK CREDIT
r- '-;."""AL"",,,, )~ .....
'~~'" 1-:71-.
........
r-
DISTRIBUTION
MEMBER BANK9IN 10. LEADING CITIES
IIU,IONI"
to
Factory employment and payrolls declined from the middle of March to the middle
of April, and the Board's seasonally adjusted index of employment was at 79 per cent of the
J.923·1925 average as compared with 82 in March and 84- at the beginning of the year. The
number employed at automobile factories declined sharply and there were further sub·
stantial decreases in the steel and machinery industries and at railroad repair shops. Smaller
declines were reported in most other manufacturing industries. Employment at mines and
on the railroads also decreased, while in trade there was some increase in the number em·
ployed, reflecting partly increased business at the Easter season.
COMMODITY PRICES
00
o
•...
.."
.poe
exes of val Of
100.
By monthue J sales, 1928-1925 average
8,
anunry, 1984 to April, 1988.
~
r--.. _
It
EMPLOYMENT
Freight·car loadings also declined from March to April, reflecting largely reduced imp- '
ments of miscellaneous freight, and were about 30 per cent less than in April, 1937.
V\J l/
....,
....
Value of construction contracts awarded, which had increased considerably in March,
showed little change in April, according to figures of the F. W. Dodge Corporation. Awards
usually increase somewhat further in April. In the first four months of this year private
residential building was about one·fourth less than in the corresponding period last year,
while other private work, particularly industrial and utility construction, was only about
one·half as large as a year ago. Awards for public projects were somewhat larger than last
year.
,00
.:: ~~~tO~Al~~:I:~~
Ind
index, was at 77 per cent of the 1923-1925 average as compared mth the level of about 79
per cent maintained during the first quarter of the year. The decline reflected chiefly considerable reductions in output at cotton textile mills and lumber mills, where there had
been moderate increases in production in March. In most other manufacturing industries
changes in activity were largely seasonal in character. Output at steel mills continued at
around 33 per cent of capacity and in the automobile industry showed little change, amount.
ing in April to about 40 per cent of the volume of a year ago. In the first three weeks of
May production of steel and automobiles was at a lower rate than in April. At mines
there was a considerable decline in output of anthracite in April while bituminous coal pro·
duction showed somewhat less than the usual seasonal decrease. Crude petroleum production continued in large volume.
,
50
'00
PRODUCTION
In April volume of industrial production, as measured by the Board's seasonally adjusted .
Distri bution of commodities to consumers showed less than the usual seasonal rise in
April. The Board's adjusted index of department store sales was 83 in April compared with
86 in March and 90 at the beginning of the year, and figures -for the first half of May indica te a further decrease.
200
'110 I---
Industrial production declined in April, reflecting chiefly reduced activjty in the cotton
textile and lumber industries. Distribution of commoditjes increased less than seasonally hut
continued to be somewhat in excess of production. Commodity prices showed a funher
decrease.
J"'1 h/V"""
v
7.R"j
.."
,.
~
ID~
19~
~
WedneSdny 11
es for reporting member bank s in
i~l leading
88. Total de es: September 5, 1984 to May 18,
. POSItS, excluding interbank, are adJusted to exclude "Boat."
:fitr
Total loans and investments of reporting member banks in 101 leading cities showed
little change during April and the ~'st hal~ of May. Holdings .o~ United States Go.vemment
oblitTations increased somewhat, wlnle holdmgs of other secunLIes and loans declmed. Adjust~d demand deposits in leading cities increased during the period as a result of expenditures by the Treasury from its balances with the Reserve banks. Interbank deposits also in·
creased substantially.
Member bank reserves increased further, reflecting principally Treasury disbursements
from its deposits at the Reserve banks, including retirement of $50,000,000 of Treasury bills
each week.
MONEY RATES AND BOND YIELDS
Yields on Government securities declined slightly further in the four weeks ending May
21 to an average on longer-term Treasury bonds of 2.28 per cent. The average yield on 3·to·5
year Treasury notes declined to a new low of 0.73 per cent. The rate on three.mont~ Treasury bills continued at record low levels, and other open·market money rates rem81ned un·
changed.
@FedFRASER