The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MON THl Y BUSINESS REVI EW of the FEDERAL RESERVE BANK o f Dallas ~===================================================================~~======================= Volu me 26 , N o. 3 =--- D a11as, T exas, May, 1 194 1 This copy is released for pubIication in mor nin g papers- Apn. l 30 ~~~====================================================~~~~~~~~~~== DISTRICT SUMMARY D.T~e production of manufactured products in the Eleventh Istnct showed a moderate expansion during March and emp.loyment and payrolls advanced further, maintaining a substang~l ~argin of gain over the corresponding month last year. ~Stnbution of commodities to consumers continued heavy, With durable and semi-durable goods in strong demand. Depart~ent store trade increased seasonally from February to March, ;.. e dol.lar volume exceeding that of a year ago by 4 per cent. . he dally average value of construction contracts awarded durIng March was down nearly one-fourth from the preceding ~onth, but awards were much greater than in March, 1940. .rude oil p1'Oduction expanded further, whereas, refinery opera~Iobs declined moderately from the all-time peak established in ru~ry. Production and shipments of lumber from mills in t IS district continued considerably higher than a year ago. The outlook for agriculture improved somewhat during the latter part of March and the first half of April, when warm, dry wca~her enabled farmers to make rapid progress with land preparatIOn and planting operations. BUSINESS b Consumer purchases in the Eleventh District appear to have d~en well sustained during March. The distribution of merchans Ise through department stores increased by about the average easonal amount and exceeded that in March, 1940, by 4 per ent . The latter gain is especially significant since all of the th ster trade fell in March last year, whereas, a major portion of 19at business was transacted during the first two weeks of April, d 41. Reflecting pre-Easter buying, sales at weekly reporting abPartment stores during the two weeks ended April 12 were i OUt 40 per cent greater than in that period a year earlier. Durang the first quarter of 1941, department store trade averaged RePer ceI?'t ~igher than in the initial three months of 1940. d' P~rts lOdlcate that the gain was general throughout the IStrlct. we~n~entories of merchandise at reporting department stores at e lOcreased 10 per cent during March, and the dollar value P tte month-end was 2 per cent greater than a year earlier. It is oro able, however, that the physical volume of stocks held t~ ~hat date was little different from that of a year ago due ch ~her average prices prevailing on department store merandls e. tr ~he. business of reporting wholesale firms in six lines of "tvt \In this district evidenced a substantial seasonal gain in la arc , and sales exceeded those in the corresponding month e;t year by 16 per cent. Sales in all reporting lines of trade cept tobacco and tobacco products participated in the gain tr'br t~e year. During the first three months of 1941, the disa,,1 Utlon of merchandise through wholesale trade channels A.lcraged about 13 per cent greater than in that period of 1940. t.c nong the individual lines of trade the most significant gains an~Ohded for the t~ree-month period were in sales of machinery of 19ardware, which exceeded those in the initial three months ag 40· by 32 per cent and 19 per cent, respectively. The wt i gate value of inventories held on March 31 at reporting las:o esale firms was 11 per cent greater than on that date year. M:aE~ployment and payrolls in Texas increased further in u rc . On the basis of figures compiled by the United States rcau of Labor Statistics it appears that the number of em- h' E 0" ployees in nonagricultural businesses exceeded by a small margin the 1940 peak of 1,084,000 recorded last December. According to the Bureau of Business Research of the University of Texas, employment in Texas during March was 5 per cent greater t han a year ago and payrolls were up 9 per cent. The increases over the year appear to be fairly general over the State, but t he most pronounced gains have occurred at Amarillo, D allas, EI Paso, and Wichita Falls. The number and liabilities of business failures in the Eleventh District declined by about 10 per cent from February to March but continued higher than a year ago. Dun & Bradstreet repor ted 30 insolvencies during the month, with an aggregate indebtedness of $366,000. AGRICULTURE Persistent rainfall over the major portion of the Eleventh District during the first three weeks of March caused a further delay in spring plowing and planting operations, but toward t he latter part of the month and early in April generally fair weather enabled farmers to make rapid progress with field work. By the middle of April planting of corn was nearing completion in north Texas and the seeding of cotton had extended into central Texas. The appearance of warm, dry weather was also beneficial to the growth of small grains, range feed, fruits and commercial vegetable crops. Moisture conditions are good to excellent throughout most of the district. Although the growth of the Texas wheat crop has been handicapped by a late start and considerable shifting of soil, physical conditions have been generally favorable for the crop in recent weeks. The principal area in which the crop has been seriously damaged by soil blowing is in the western portion of the Panhandle, where the abandonment of acreage is expected to be heavy. Elsewhere in the wheat growing area of T exas the crop ha~ shov:n a noticeable recovery from the damagin~ effects of high wlOds. The Department of Agricult ure in its April 1 forecast placed the indicated production of wheat in Texas at 41,420,000 bushels, which, if realized, would be the fourth largest crop of record, exceeding the 1940 harvest by about 12,000,000 bushels. The indicated yield per acre in t his S~ate was placed at 9.5 bushels as ~gainst a 19~0-1939 average Yield of 6.8 bushels. The prospective productIOn of wheat in Oklahoma was forecast at 62,959,000 bushels on April 1 as compared with a ten-year average harvest of 47,682,000 bushels. The growth and harvesting of spring vegetable crops in the truck growing area of south Texas, which had been delayed by LIVESTOCK ON ·FARMS JANUAR'I' , OF [ Aat ~AR , ELEVENTH f.ED.ERAL RESERVE . DISTRICT e This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW low temperatures and excessive rainfall earlier in the season, The number of range animals on farms and ranches in this made some progress during the first half of April with the district increased further in 1940 and at the close of the year advent of warm, dry weather. Shipments of vegetables and the total was at an all-time peak for that date. According to citrus fruits from south Texas thus far this season have the Department of Agriculture, cattle and calves on farms at averaged 18 per cent smaller than in the corresponding period the beginning of 1941 numbered 400,000 head higher than a last season. According to the Department of Agriculture, the year earlier and the inventory of sheep and lambs was nearlY condition of fruits and nuts is generally good throughout 500,000 head larger. The pronounced expansion in sheep raisTexas. On April 1 the condition of peaches was placed at 85 ing that has developed during recent years accounts for the per cent of normal, as against 77 per cent on that date in record established in the number of sheep and cattle on farms 1940. Production of peaches in Texas in the latter year was in this district. The cattle inventory on January 1 this year was still 14 per cent, or 2,000,000 head, smaller than on JanUin near record volume. The Department of Agriculture's annual survey on the pro- ary 1, 1934, when the highest point in recent years was posed acreage to be utilized by farmers in this district during reached. Following a marked increase in the preceding year, 1941 in the production of twelve principal summer crops ex- the number of hogs on farms in the Eleventh District showed cept cotton shows that approximately 23,079,000 acres will be a substantial decline in 1940, reflecting heavy marketings and planted. TIllS total, if realized, would exceed the 1940 acreage a reduction in the number of pigs raised. The trend toward planted to similar crops by 234,000 acres and would be mechanical farming, which has been in progress since the earlY 1,100,000 acres in excess of the 1930-1939 average. In Texas, 1920's continued in 1940; the number of horses and mules on farmers plan to utilize 13,263,000 acres in the production of farms declined 3 per cent over the year, the total on January these crops, which would be 2 per cent larger than in 1940 1, 1941, being about 40 per cent smaller than the 1920-1929 and 7 per cent greater than the ten-year average. As compared average. • FINANCE with 1940, it is estimated that the acreage to be planted in The Secretary of the Treasury announced during March this district and in Texas to corn, tame hay, rice, potatoes, and legume crops will be larger, whereas, that seeded to oats will that three new series of United States Savings bonds, as well be moderately smaller. The indicated acreage to be planted to as Postal Savings stamps, will be offered for sale, commencing May 1, 1941. The new issues are designed to appeal to individgrain sorghums is about the same as that in 1940. Livestock ranges in the Eleventh District showed the usual ual investors in all income groups, as well as to other investors, seasonal improvement in March, and the growth of range feeds None of the savings bonds may be purchased by banks, On March 18, the United States Treasury announced an was further stimulated by favorable weather conditions during the first half of April. On the whole, prospects for spring and offering of 2 Yz per cent Treasury bonds dated March 31, 1941. summer grazing are the best in several years. Although low To this issue the Treasury invited cash subscript~ons in the temperatures during March caused a shrinkage in livestock amount of $500,000,000 and also offered the bonds in exchange weights and light to heavy losses among new-born lambs and for the His per cent Treasury notes maturing on June 15, kids and freshly shorn goats, the condition of livestock con- 1941, outstanding in the amount of $500,000,000. The holders tinues above the average for this season, and in view of the of the 1 % per cent notes were also given the option of eJCfavorable range conditions, animals are expected to mend changing them for the % per cent Treasury notes dated March rapidly with the appearance of seasonable temperatures. The 15, 1941. In this district, a total of $2,524,500 of outstandoutlook is favorable for a large supply of grass-fat cattle and ing notes was exchanged for the new issues, and cash subsheep for slaughter this spring, and it is anticipated that a scriptions to the 2 Yz per cent Treasury bonds aggregated larger number of animals will be fattened for market in this $138,830,000, against which allotments of $12,513,300 were district than has been the case in recent years due to the favor- made. able range conditions. The Department of Agriculture reports NUMBER AND VALUE OF LIVESTOCK ON FARMS AS OF JANUARY 1, 1041 AND 1940-(000'8 omitted) that contracting of cattle for future delivery has been active, , Tex a s - - - - v - - Eleventh Distriotr----but total commitments have been smaller than usual. ~No. hoad~Total vallle~No. hoad-_Tota valueWHOLESALE AND RETAIL TRADE STATISTICS ====N;;tiPereentage ehnnge in: , Number ~::: Net s.les--v----Stoeks_____ of March, 1041 from Jan. 1 to March, 1941 from reporting Maroh, Feb., M.r. 31, 1941 March, Feb., Retail trade: firms 1940 1941 from 1940 1940 1041 Department stores: Total llth Dist .. . . 46 + 4 +21 + 8 + 2 +10 Dall.s .......... .. 7 + 4 +12 + 6 + 6 + 9 Fort Worth ....... . 4 + 1 +33 + 8 - 5 +10 Houston .. ....... .. 7 - 2 +20 + 6 + t +17 San Antonio ....•.. 5 +17 +31 +16 + 8 + 9 Shreveport ....... . 3 - 2 +23 + 7 Other oities .......• 20 + 5 +26 +10 +iiJ Independent stores:' Arizona. . .. . .. .. . . 258 + 5 +13 + 8 New Mexioo....... 174 Okl.homa.. .. .. .. . 548 Texas... . . . . . .. . .. 1,028 + 5 +17 +12 Wholesale trade:' Maohinery, cqpt. '" supplies........... 5 +33 + 7 -7 +32 +8 Drugs (inol. liquors) . 11 + 13 + 9 +7 +9 +2 Groceries... ........ 32 +12 +14 +14 +ll +8 Hard ware.. ........ 15 +28 +13 +14 +19 +5 Surgioal equipment. . 5 11 + 4 5 No cbg. 4 - t Tobaooo '" produots. 'Compiled by United States Bureau of Census. tChange less than one-half of one per cent. ·:. :.'3 +~ +lg + +1~ + INDEXES OF DEPARTMENT STORE SALES AND STOCKS (1923·1925 average=I00) Maroh February January 1941 1941 1941 Bales (daily average): Without seasonal adjustment ....... . 112 100 r 96 With seasonal adjustment .... ...... . 118 118 126 Stooks (end of month): Without seasonal adjustment ....... . 74 67 r 63 With seasonal adjustment ........... . 72 70 r 72 r-Revised. Maroh 1940 110 112 71 69 1941 Horses and colts ..... . 665 Mules and oolts. . .... 633 All oattlo and oalves.. 6,044 Milk oows'........ 1,457 Hogs, inoluding pigs.. 1,926 Allsheop and lambs .. 10,620 1940 1941 1040 670 31,545 34,850 659 47,421 53,347 6,677 219,694 199,782 1,443 59,737 54,834 2,203 12,827 13,090 10,009 55,389 49,413 ___ ___ 1941 1,328 1,016 12598 2'662 3:874 14 347 I 1940 1941 1940 1,359 62.010 70,440 1,052 79,995 89,907 12 195r409 753 373,41~r 2'618 112'314 103,35 4:674 23:037 25,08 2r 13 852 r 76541 09,804r I ' ___ Total ........ , 20,788 20,377 306,826 350,482 33,163 33,)32 652,836 628,79~ 'Cows and heifers two years old and over kept for milk' number and value inoluded ,n ".ll o.ttlo .nd oalvos". lElcventh District figures repres~nt oombined totals for the 6ve states wholly or partially inc uded in the Ele,'euth Distriot. r-Revised. SOURCE: United States Dopartment of Agrioulture. LIVESTOCK RECEIPTS-(Number) , . - - F o r t Wo r t h - - - v - - San Antonlo---Maroh Maroh February Maroh Maroh FebruarY 1941 1940 1941 1941 1940 1041 C.ttle .................. . 33,175 36,147 26,309 13,589 13,281 12,~~~ Calves ................. . 16,390 22,704 16,415 13,340 14,347 15'877 53,837 43,416 48,359 14,171 8,817 13'831 45,430 49,088 18,740 7,994 5,631 5, ~~!~:::::::::: :::: ::::: CASH FARM INCOME FROM THE SALE OF PRINCIPAL FARM PRODUOTS AND GOVERNMENT BENEFIT PAYMENTS (In thousands of dollars) ,-----January, 1941 ---~ Receipts from: Govern- ',.....--Total reoeipts-----mont January JantUlr Y Crops 1941 1940 Livestook' payments 555 5475 4,666 1,970 7,191 6'035 3,620 5,108 464 9,201 3' 006 New Mexioo .... . . ·...... . 1,049 1,840 783 3,672 ' 2,710 15,552 }4,749 Oklahoma .............. . 4,480 8,362 Texas .................. . 11 804 43 903 39,504 15,943 16,156 , , 70,029 Total. .. .... .... 29,767 38,436 16,316 79,519 ' Inoludes receipts from the sale of livestook and livestook produots. SOURCE: UDlted States Department of Agriculture. ~~i~r~,~·.·.::::::: ::::::.- - MONTHLY BUSINESS REVIEW 8 Treasury financing during March resulted in some adjust- in fairly close alignment with demand, and above-ground Illents in the investment portfolios of weekly reporting mem- stocks of crude oil showed a much smaller gain than was exber banks in this district. Between March 12 and April 9 in- perienced in the corresponding period last year. Furthermore, Vestments of these banks in Treasury bills were increased conservation authorities in the eight prorating states, which $2,587,000 and holdings of Treasury bonds rose $10,691,000 to account for 84 per cent of the nation's crude oil production, the highest level in recent years. Investments in Treasury notes, show a disposition to hold alIowables near the estimated demand on the other hand, were reduced $7,642,000, reflecting chiefly as computed by the United States Bureau of Mines. eXChanges of outstanding notes for new issues of Treasury Although a high rate of refinery operations during the initial bonds. Holdings of Government guaranteed obligations were three months of 1941 caused a heavy accumulation of gasoalso reduced $3,178,000 during the period. Although total in- line, stocks of that product at the close of March were 3 per Vestments on April 9 were only $2,800,000 greater than four cent smaller than a year ago, and expressed in terms of days' 'Veeks earlier, they exceeded those of a year ago by $13,500,000. supply at the current rate of consumption, motor fuel stocks Loans at weekly reporting banks showed little change between are about 10 per cent smaller than a year ago. The inventory March 12 and April 9 but the total of $320,235,000 on the position of industrial fuel and heating oils is generally satislatter date was $50,440,000 greater than on the corresponding CONDITION OF THE FEDERAL R~ERVE BANK date in 1940. (In thousand. of dollars) . Total deposits at reporting banks decreased $11,076,000 durApril 15, April 15, Maroh 15, 1041 1040 1041 Ing the four weeks ended April 9. Although United States Total oash resorves ..... . . . .... .......... ....... '....." .• S323,408 $240,560 $311,806 Disoounts ror momber bauks ......" . ...... ... .. ....... . Government deposits increased $5,233,000, there were declines Other 53 274 Nono bills disoountod ......... ............... . .... . None 30 None ?f $10,219,000 in adjusted demand deposits, of $4,750,000 in Industrial advances ... . .......................... . 277 482 277 United States Govornment securities . ............ _ .. 88,046 05,012 86,835 Interbank deposits, and $1,340,000 in time deposits. Total earning assets ................ . ........... .. 88,376 05,708 87,112 Member bank reserve deposits ..... . .............. . . 212,078 Reserves of member banks in this district declined about Federal reserve notes in aotual circulation ... ........ . 253,164 255,056 00,567 70,542 08,705 $21,000,000 during the last half of March, reflecting chiefly CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES the effects of income tax collections and cash settlements cove. (In thousands of dollars) rIng purchases of the 2 Yz per cent Treasury bonds dated April 0, April 10, March 12, 1041 1040 1941 Ma~ch 31, 1941 j nevertheless, daily average reserves for the Totalleana and inve.tments....................... $504,115 $530.143 $501.360 period were still $3 0,000,000 greater than a year ago. Daily Total loans. ..... . .................... .. ......... 320,235 260,705 320,300 Commeroial, industrial and agrioulturalloans. ..... 210,257 178,027 220,046 average excess reserves during that period decreased further by Open market paper........... . .... .. ........... 1,930 1,750 1,650 $8,200,000 to $85,8 00,000, which was the lowest figure reLoans to brokers and dealers in seourities.. . .. .. ... 3,269 4,306 3,854 Other loans ror purchasing or oarrying securities.... 11,023 18,401 11,805 ~rd.ed for any semi-monthly period during the current year. Real estate loans .... . .... .. . '" .. . . .. ." ...... .. 23,814 22,264 23,471 Loan. to banks....... ... .. ...... . ..... ....... .. . .. . 532 438 640 Urtng the first half of April both reserve balances and excess All other loans . .. . ... .. .... . . . ... ... ... . ....... 50,501 40,510 57,844 151,223 169,004 reserves averaged slightly higher than in the preceding period. United States Government direct obligations......... 174,640 Obligations fully guaranteed by United States Govt. . 37,207 40.874 40,385 Total earning assets of the Federal Reserve Bank of Dallas Other seourities. . ..... . ..... . ... ... ........... . •. 62,033 59,251 61,671 with Federal Reserve Bank. . ....... . ..... 140,105 132,254 161,057 ro~e $1,264,000 during the month ended April 15, reflecting Reserves Balanoes with demestio banks.... .. . . . . . . ... ... ..... 306,451 202.088 307,409 473,480 556,706 chiefly an increase in holdings of United States Government Demand doposita-adjusted". . . . ... . .............. 546,487 Time deposIts. .. .. .. . .. . .. . . . . . .. . .. ..... .. .• . .. . 136,650 136,016 137,000 securities occasioned by a reallocation of the System's invest- United States Governmont deposits ... . .. ... .. . •... . 27,653 31,003 22,420 deposits..... .. ........ .. ............... 280,770 263,161 204,526 Illent account among the several Reserve banks. After reaching Interbank Borrowings from Federal Reserve Bank......... . . . . None None None bn alI.-time peak on March 4, Federal Reserve notes of this oasb "Inoludes all demand deposit. other tban interbank nnd United States Government Ie .. items roported as on hand or in tbe process or eoUeetion. ' ank m actual circulation showed a moderate downward trend Until the final week of the month when month-end requireDEBITS TO INDIVIDUAL ACCOUNTS (In tbousand8 doUars) ~ents for payrolls and business settlements caused an expanMnreb March Petg.ehange Februnry Potg.ehnnge ~on to a new record of $101,80 0,000 on April 2. During the 1041 1940 over year 1041 over month rSt quarter of 1941, Federal Reserve notes of this bank in Abilene .................. $ 14,297 S 8,517 +68 $ 12,224 +17 Austin. . ..... ... .. .. . .. ..• 33,773 35,185 -4 34,088 -1 aCtual circulation averaged $16,900,000 higher than in the Beaumont... . ... ... ... .. 28,202 23,780 +10 27,103 +4 Corsicana ....... ........-. 3,701 3,320 corresponding period of 1940. 3,373 +11 +10 Dallas. . . .. . .... .. .. .. .. . 303,792 263,377 +15 266,539 +14 El Paso................ ... 44,647 33,240 INDUSTRY +34 46,800 -5 Fort Worth...... ........ 87,700 80,971 88,361 +8 +5 h.The aggregate value of construction contracts awarded in Galveston............ .... 28,140 28,078 24,440 + t +15 251,008 260,147 t IS district during March was 6 per cent smaller than in t~e Houston.. .. . .. .. . .. .. • .. 278,724 +11 +7 Port Artbur. . . . ... ..... . 0,014 0,590 +3 10,188 -3 reC:ding month, reflecting declines in awards for non-reSl- Roswell. . . . .. . .. .. . .. .. . 4,570 4,467 +3 4,577 +t San Antonio............. 84,433 72,100 +17 78,347 +8 hntlal building and engineering projects. On the other hand, Shreveport. . . . . . . . . . . . ... 52,718 45,376 +10 45,716 +15 Texarkana".... ... .. ... ... 8,800 8,244 +7 8,406 e value of awards for residential building was moderately Tucson.. .. .. . . . .. . . .. . .. 15,342 13,022 +18 13,387 Igher than in February. Contracts let for all classes of con- 'I'yler.. .. .......... .. ... 11,393 12,410 -8 11,430 -t 14,722 . ............... 16,556 +12 14,606 +13 s~rUction work showed a marked gain in value over the rela- Waco... 16,608 Wichita Falls. ...... . .... 17,750 +7 15,508 +14 tively small total in March, 1940. Total. .. .......... S1,044,470 $024,042 +13 $060,348 + 9 During the first quarter of 1941, the value of building con"Inoludes figures of two banks in Texarkana, Arkansas, located in the Eighth Dist.riot. tracts issued in this district amounted to $66,500,0 00, which tCbange leas tban one-balf of ono por cent. \\ras near the record for that period, and nearly 50 per cent SAVINGS DEPOSITS greater than in the initial three months of 1940. Increases in March 31,1941 Per.cent':F.e e~an,e In ch e principal class of construction work contributed toward Number of ' Number of Amount of: savlDgs epeslts rom" t. e gain over 1940, but among the specific types of construcreporting savings savings March 31, Fob. 28, depositors deposits 1040 1041 tion the most pronounced increases occurred in awards for Beaumont ........... . .. . banks 3 10,339 $ 4,288,500 + 7.7 +.9 ~anufacturing buildings, one-family dwellings, and streets and Dallas ................. . 8 01,002 26,723,707 + 1.0 + .2 El Paso ................ . 10,735 8,424,408 + 2.1 + 1.0 2 ghways. Fort Wertb ..... . ....... . a 35,128 13,120,763 + .0 No obg. Galveston ..... ... ...... . 4 10,075 12,220,080 1.4 +.7 Daily average crude oil production in the Eleventh District Houston ................ . 10 78,006 32,544,001 + 4.5 +.4 Port Arthur . ........... . ~nd in the United States increased moderately from February San 2 5,083 3,236,465 + 1.3 -.0 Antonio . . ......... .. 5 23,346 18,011,133 + 1.2 .3 ~arch, but remained at a lower level than a year ago. Shreveport ............ .. +.5 3 25,486 12,370,389 + 1. 6 Waco .................. . 3 8,136 4,510,051 2.1 +.2 Urtllg the first quarter of 1941, operations resulted in a Wiohita Falla ........... . 3 7,131 3,611,480 - 1.0 - 1.2 . . h' .. f th 69 62,803 30,765,570 + 1. 5 .2 dStrengtllenmg lD t e mventory positlOn 0 e petroi eum'm- All otbers .............. . Total •• • ___ _ Us try. Petroleum output during the three-month period was 115 387,160 $160,844,736 + 1.8 +.2 0' h' h b +lg MONTHLY BUSINESS REVIEW 4 factory. From the standpoint of , demand, domestic consumption of gasoline during the first quarter of 1941 was considerably larger than in that period of 1940 and consumption of industrial fuel oil also showed an appreciable increase, reflecting the high rate of industrial activity. The United States Bureau of Mines estimated that the combined export and domestic demand for all refined products during the second quarter of 1941 should be about 5 per cent greater than in that period of 1940. Wholesale prices of gasoline advanced moderately during March from the extremely low levels that had prevailed for several months, and prices of fuel oil and lubricants also increased. Posted prices for crude oil in the Mid-Continent area, which had remained virtually unchanged since October, 1938, were advanced from 5 to 7 cents per barrel during the latter part of March and early in April. A similar increase was later effected in Illinois, Michigan and the Rocky Mountain producing sections. Drilling activity in the Eleventh District showed a counterto-seasonal decline in March, and the daily average number of wells completed was much smaller than a year ago. In contrast with the decline in this district, well completions elsewhere in the United States increased sharply from February to March and were at a 6 per cent higher rate than in March last year. Drilling activity in the United States during the first quarter of 1941 was at a 5 per cent lower rate than in that period of 1940. The rate of activity at cotton textile mills in the United States rose to a newall-time peak during March, as mills VALUE OF CONSTRUCTION CONTRACTS AWARDED (In thousands of dollars) March Maroh February January 1 to Maroh 31 1941 1940 1941 1941 1940 Eleventh Distriot-total.. . $ 22,101 S 13,945 $ 23.581r S 06,510 S 45,892 8,072 6,637 7,565 Residential. . ..... ..... 24,085 17,018 All other. . . . . . . . . . . . . . 14,089 7,308 10,010r 42,425 28,274 United States"-total.... . 479,903 272,178 270,373 1,055,481 608,943 Residontial. . . . . .. . . . . . 147,859 121,708 110,459 375,024 273,900 All othor. . . . . . . . . . . . . . 332,044 150,470 153,914 079,857 394,977 "37 states east of the Rooky Mountains. r-Rovised, SOURCE: F. W. Dodge Corporation, BUILDING PERMITS Percenta~e ohange Peroentage Maroh,1941 valuation from Jan, 1 to Mar, 31, 1941 ohan~o No, Valuation v~M-ar-.,-19-40-F-eb-,,19-4"""'1v Abilene........ 75 S 261,674 +490 +369 Amarillo. . . .... 62 175,697 - 34 - 11 441,444 - 60 - 43 Austin. ...... . . 191 Beaumont .... . , 114 151,550 + 26 + 71 Corpus Christi.. 206 925,880 + 63 - 30 Dallas". . . . . . . . 827 1,008,405 1 + 10 EI Paso. ....... 109 208,395 - 2 - 27 Fort Worth..... 290 570,839 + 18 + 03 Galveston...... 228 591,997 + 166 +512 Houston........ 537 2,587,185 + 39 +132 Port Arthur. . . . 96 74,823 - 48 - 30 San Antonio.... 500 476,384 - 33 + 26 Shreveport. . . .. 126 270,419 - 50 - 9 Waco. .... ..... 59 239,278 + 90 + 58 Wiohita Falls ... ~ 2q3,468 + 80 +151 Total. ... 3,556 58,247,444 + 8 + 29 • Inoludes Highland Park and University Park, tIndioates ohange of less than one-half of 1 per oent. No, Valuation 108 S 392,287 184 547,182 595 1,002,790 345 547,319 714 3,584,302 2,151 3,088,653 396 717,209 733 1,422,380 515 799,822 1,371 5,707,900 300 205,067 1,560 1,938,831 364 893,714 194 555,929 142 342,713 9,727 $22,406,698 f~~:alt940 +190 + 2 - 32 + 67 + 9 + t + 37 + 13 + 12 - 19 - 10 + 22 - 21 + 54 + 40 - 2 STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS ,.---Texas--v---United States~ August 1 to Maroh 31 August 1 to March 31 This season Last season This season Last senson Cottonseed reoeived at mills (tons) .. . .. . ........ . ..... . 1,059,288 895,040 4,286,714 3,974,155 Cottonseed orushed (tons) . ... . 992,285 915,117 3,708,505 3,777,965 Cottonseed on hand Maroh 31 (taus) ... . ... .. ...... . .... . 82,750 34,991 616,991 316,816 Produotion of produots: Crude oil (peunds) ......... . 303,080,487 266,238,498 1,187,725,834 1,193,710,185 Cake and meal (tons) ..... . . 463,021 438,992 1,646,284 1,705,857 253,078 Hulls (tons) . . .. ......... .. 234,361 934,726 954,387 245,033 Linters (running bales) . . . . . . 212,644 1,002,485 965,190 Stooks on hand Maroh 31: Crude oil (pounds) ... ..... . 22,463,827 26,460,047 69,438,440 68,419,521 64,477 Cake and meal (tons) ...... . 51,084 245,634 175,093 91,539 32,163 Hulls (tons) ..... ......... . 197,563 80,874 69,397 97,214 Linters (running hales) ..... . 258,458 318,687 SOURCE: Bureau of Census, stepped up operations in order to meet the current demand for products and to make scheduled deliveries on earlier commitments. The volume of cotton consumed totaled 854,200 bales, which was more than one-third greater than a year ago and exceeded the previous maximum established in January this year by nearly 11,000 bales. Although demand for cotton goods fell off somewhat during the latter part of March and early in April, numerous inquiries were reported for industrial fabrics and for products needed by converters to fill Government contracts. Prices of cotton goods showed further increases during March and early in April. On April 7 the average price of print cloth at mills in the United States was at the highest level in nearly four years and about 50 per cent above that of a year ago. Purchases of raw cotton by processing establishments during March closely approximated the amount consumed, and although the total of 1,911,000 bales on hand at the close of March was one-fifth greater than a year ago, jt was sufficient for only two and one-fourth months' operations at the March rate of consumption. Spot cotton prices in the United States showed a further increase during the final week of March and since that time they have shown little 11et change. Current prices are only moderately below the highest level reached since August, 1937, On April 15 the price of cotton, middling, 15/16-inch staple, in ten spot markets averaged 11.13 cents per pound, as against 10.66 cents a month earlier. Cotton in the Government loan is being released to producers at a substantial rate. Exports of cotton from the United States totaled only 97,300 bales during March as against 434,000 bales in the corresponding month of 1940. During the first eight months of the current season foreign shipments of American cotton averaged slightly more than 100,000 bales monthly. CRUDE OIL PRODUCTION-(Barrels) Maroh, 1941 Inorease or deorease in daily average produotion from_ Total - . Dailyavg. Feb., 1941 produotion produotion Maroh, 1940 5,426,650 175,053 North Texas .. .............. . + 2,553 - 11,571 West Texas ......... , ... ,., .. 8,308,150 268,005 + 2,048 - 36,230 East Texas ..... . ........... . 14,305,450 461,466 +13,682 - 29,542 6,455,250 208,284 South Texas ................ . + 5,090 - 50,484 Texas Coastal.. ............ .. 7,877 ,450 254,111 50 + 3,006 Total Texas. . . . . . . New Moxioo................. North Louisiana .... .. ........ -42,372,950 -3,305,700 2,177,500 + 1,366,869 106,636 70,242 -124,821 - 6,306 2,089 + Total Distriot...... 47,856,150 1,543,747 -129,038 SOURCE: Estimated from Amerioan Petroleum Institute weokly reports. +23,873 + 4,423 + 615 +28,411 CRUDE OIL PRICES-(40 gravity and abovo) Mar. 31,1941 Mar. 31 , 1940 Feb. 28, 1941 North and west oentral Texas ......•......... $1.03 SI.08 $1.03 East central Texas ............. . ........... . 1.12 1.17 1.12 Texas Gulf Coast ..................... . .... . 1.28 1.38 1.28 West Texas-New Mexioo ........ . . , •.... . , . .95 1.02 .95 .99 North Louisiana ............ . . ........... '" 1.10 1.05 1.10 Enst Texas (Oat price) ....... ..... ..... .. , .. 1.15 1.10 SOURCE: The Oil Weekly, Houston, Texas. RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT THE PORTS OF HOUSTON AND GALVESTON-(Balcs) Maroh Maroh Febrnary August 1 to March 31 1941 1940 1941 This season Lnst seaB OD Reoeipts ............ .... . 98,475 248,977 100,143 1,679,126 3,017,4410~ Exports(for'gn & ooastwise) 104,306 281,269 74,749 791,076 3,090, Stooks, end of month . . . .. ] ,909,691 1,457,794 1,961,039 CONSUMPTION, STOCKS, AND EXPORTS OF (;OTTON-(Bales) Maroh Maroh Fobruary August 1 to Maroh 3\ Consumption at: 1941 1940 1941 This season Last se080n Texas mills ......... '" 21,157 ]0,507 19,368 103,610 92,960~ United St,ate8 milis .. ... 854,170 027,194 793,026 6,075,096 5,330,9 U.S. stooks-end of month: 1,500,334 1,905,413 In oonsnming cstab'mts. 1,911,238 Publiostg. &. oompresses. 13,243,573 11,409,520 14,038,917 E:tjlorts rrom U. S, to: 1 636,723 United Kingdom. . . . . . . 4,362 110,795 12,920 344,350 '668,984 Franoe...... ... ..... .. None 51,080 None None 442,420 Italy.... . .... . ...... .. None 57,288 None None 18,992 Gormany.. . . . . . . .. ... . None None None None 980,232 Other Europe .... : . . . .. 26,196 62,400 8,435 190,238 740,060 74,480 57,641 9,986 853,34 2 '. :::: 77,799 29,256 237,768 i~r~~be~ ·oo~·~tri~". Total experts. '.". 5~:~~~ 97,292 438,842 60,597 829,992 - 5,350,353 r) I, MONTHLY BUSINESS REVIEW May 1, 1941 NATIONAL SUMMARY OF BUSINESS CONDITIONS (Complied by the Board of Governors of the Federal Reserve System) "- INDUSTRIAL PRODUCTION I. 0 "" "'" ,.0 150 150 140 140 130 120 '\ IJO 80 rv I IV \ / 100 90 I I20 I 10 ) -\ ,N 130 J J I00 v 80 70 19'6 1937 1938 1939 1940 194/ ~ederal Reserve index of physical volume of produc- _on adjusted for seasona l variation, 1935-39 average - i 00. By months, January, 1935 to March, 1941. ... ,... DEPARTMENT STORE SALES AND STOCKS 120 Ito 110 !r 100 90 80 ? r"V " N s'LEG 1\/ I00 j'J 90 Iv' 80 '--~/ '" --"..r-t-? 80 J J r ...J/ 70 '''/ 60 SO 193!S 1936 1937 1938 1939 1940 1941 ~~~eral Reserve indexes of value of sales and stocks, • i~sted o. for seasonal variation, 1923-25 average By months, January, 1935 to March, 1941. WHOLESAL.£ PR ICES = ... ,"" nc,0lWT 110 100 100 .ail 90 eo 80 10 70 -60 60 Volume of industrial output continued to increase in March and the Board's seasonally adjusted index rose from 141 to 143 per cent of the 1935-39 average. Activity increased further in most durable goods industries, particularly in those producing machinery, aircraft, ships, and armament. Steel production increased to about 100 per cent of rated capacity. Automobile production, which usually increases considerably in March, showed little change from the high rate reached in February. In the fi.r st half of April output was reduced considerably owing to a shutdown at plants of the Ford Motor Company during an industrial dispute which was setded about the middle of the month. Retail sales of new and used cars advanced to new peak levels in March and dealers' stocks at the beginning of April amounted to about a month's supply at the current rate of sales. Output of lumber, which had been sustained at unusually high levels during the winter months, rose less than seasonally. Activity in the textile and shoe industries increased further in March. Cotton consumption rose to a record level of 854,000 bales and there was also an increase in rayon deliveries. At wool textile mills activity was sustained at the peak rate reached in February, not showing the usual large seasonal decline, and in the chemical and rubber industries further advances were reported. Bituminous coal production rose considerably, while output of crude petroleum was maintained in March at about the rate that had prevailed in the four preceding months. In the first half of April coal production declined sharply, however, as most mines were closed pending conclusion of contract negotiations between mine operators and the miners' union. Production of nonferrous metals continued in large volume in March and deliveries of refined copper showed a sharp rise as domestic production Was supplemented by supplies received from South America. Construction contract awards rose sharply in March and were larger than in any month since the middle of 1930, according to the F. W. Dodge Corporation data. The rise was chiefly in awards for publicly-financed work, which had been reduced considerably in January and February, and in private nonresidential projects, particularly factory construction. Awards for private residential building, which had been unusually large during the winter months, showed less than the customary seasonal rise in March. DISTRIDUTION In March distribution of commodities to consumers was sustained at the high level reached in February. Sales at mail-order houses and department stores increased seasonally and variety store sales showed more than the usual seasonal rise_ Freight-car loadings increased by about the usual seasonal amount. Loadings of coal and grain rose considerably, while shipments of miscellaneous freight, which in previous months had risen steadily, on a seasonally adjusted basis, showed a smaller increase than is usual at this time of year. COMMODITY PRICES 50 50 19l1S ~35 1917 1938 1939 1940 1941 ~C{~au of Lahor Statistics' indexes, 1926 = 100. uc t er" includes commodities other than farm prodts and foods. By weeks, January 5, 1935 to week ending April 12, 1941. MEMBER BANKS IN 101 LEADING CITIES I 1 u. S. GaIT .t::~ANS 1 I4 I ,../ OBLIGATIONS / r~ L V -- -... r ~~·tl ' 10 Io ,-j....-/ ./ 4 I 1935 1936 LDANS TO DROKfRS ' ANO DEAlERS J -r 1937 1938 Prices of basic commodities continued to advance sharply from the middle of March to the middle of April. There were substantial increases in prices of domestic foodstuffs and further advances in burlap, cotton, rubber, and lead. Increases were also reported in wh~le~ale prices of a .number of manufactured products and the general index of the Bureau of Labor StatistIcs rose two POInts to 83 per cent of the 192 6 average. Informal action was taken by the Government to discourage price increases of some additional industrial materials and maximum price schedules were established for steel, bituminous coal, secondary and scrap aluminum and zinc, and iron and steel scrap. Sharp reductions in prices of some kinds of nonferrous metal scrap resulted. Announcement of an expanded Federal purchase program for hog, dairy, and poultry products was followed by price increases for these and related products. BANK CREDIT Total loans and investments at reporting member banks in 101 CltJes increased during March and the first twO weeks of April. Commercial loans continued to rise substantially, and holdings of United States Government securities increased further, reflecting purchases of new Treasury offerings. UNITED STATES GOVERNMENT SECURITY PRICES OTHER SECURITIeS \"q PRODUCTION 90 ,,/ 70 1 93~ . Industrial activity in~reas:d further in ~ar~h but declined somewhat in the first h alf of April OWIng to. t.emporary reductl~ns In output of bItumInous coal and automobiles. Wholesale prices of many commodItIes advanced consIderably and the Government took steps to limit price advances of SOme additional industrial materials. 1939 - 1940 o 1941 C ednesday figures, January 2, 1935 to April 9, 194~. ~lmmerci a l loans, which include industrIal and agrlrural loans, represent prior to May 19, 1937 SO-called "Other loans" as then reported. * Prices of United States Government securities declined irregularly from March 15 to April 9 but s bsequently rose slightly. The 1960-65 bonds showed a net loss of about of 1 point on April 15, f~llowing a rise of about 3!4 points in the previous mo.nth. The 'yield. on this issue On April 1 5 was 2.14 per cent, compared with 2'.03 per cent at the ali-tIme peak In prIces on December 10, and 2.30 per cent at the recent low in prices on February 15.