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MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
2
COMMERCIAL FAILURES
BUILDING PERMIT VALUATIONS
Moving average of building permit valuations
at eleven cities in Eleventh Federal Reserve District.
DEBITS
'ro
Monthly fluctuations in the number and amount
of liabilities of commercial failures in the Eleventh
Federal Reserve District.
LUMBER ORDERS AT PINE MILLS
INDIVIDUAL ACCOUNTS
"
140
120
100
Fo
140
.rJI II J£1
11
~
I
100
90
I,;j
I~
60
60
20
20
o
1922
Monthly fluctuations in debits to individual accounts at fifteen cities in the Eleventh Federal Reserve District.
20
1923
1924
o
Monthly fluctuations of lumber orders at pine
mills in Eleventh Federal Reserve District. Normal
production lOO=per cent.
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
giveR rise to serious concern with respect to the
district's agricultural outlook. Such a program, together with the fact that spot cotton on March 15th
was selling at approximately five cents per pound
less than at the beginning of February, is construed
by many of the district's bankers as a factor that
must be reckoned with in the dispensing of credit
during the present growing season.
The employment situation is considerably improved compared with a month ago. In practically
all the larger cities of the district the winter surplus of skilled labor has been absorbed. Although
there is still a slight surplus of common labor, this
condition will probably be relieved as soon as seasonal
work opens up on the farms and on highway construction.
A study of the labor situation in the Southwest
3
reveals the need of an augmented supply of skilled
labor to take care of the increased demand arising
from the rapid growth of such industries as textile
manufacturing and the building trades.. To this end
the state of Texas has recently provided ·for the establishment of a new 'l'echnological College to be
located at Lubbock, Texas, in ' the ' heart of what is
regarded as the most promising new cotton growing
region of the South. During the past month another undertaking, with a similar purpose in view,
has been launched under private initiative with the
view of establishing in Dallas a vocational school for
the training of skilled operatives in the building
crafts, the new institution to be known as the Dallas
Vocational School. It is believed that such institutions will play an-important part in meeting the demand for skilled labor needed by the rapidly growing
industries of the Southwest.
CROP CONDITIONS
The heavy snows and frequent rains during the
past month have interfered materially with crop
preparations and have delayed the planting of corn
and the seeding of spring oats and wheat. Some corn
has been planted but reports from certain sections
al'e to the effect that there is danger of the seed
rotting in the ground before germination. Planting
is unusually late and farmers are waiting for the
ground to dry sufficiently to complete operations.
The preparation of land for cotton in different
sections of the district shows various stages, ranging from a very small percentage to a relatively high
percentage, depending largely upon the drainage' and
kind of soil. Much of the land in South Texas is
either planted or fully prepared, but in the Southeast
and Central sections only a small percentage of the
work is completed.
The recent snows have greatly benefited the fall
sown oats and wheat. Many fields which a month
ago showed the effects of freezes are now greening
and making good growth. The plants are well rooted
and have ample moisture to insure speedy development as soon as the ground gets warm.
The fruit crop in the northern portion of the district was the source of much apprehension during
the recent cold wave. While there was some injury
to the crop, late reports indicate that the effects
were not serious. However, the trees are beginning
to bloom, which is the critical stage, and should extremely low temperatures obtain serious injury
Would result.
The observers for the Department of Agriculture
report that the acreage of truck crops in the Rio
Grande Valley · has been greatly increased this
year. All crops are late, due to the unfavorable
weather conditions in the planting and transplanting
season, but the plants are in good condition and the
movement of cabbage, spinach, beets, and carrots
are in full sway.
According to the report of the Department of
Agriculture, the holding of cereals on Texas farms
on March 1st, with the exception of corn, were in
excess of the holdings on that date of 1923. The
report states that the quantity of corn remaining on
farms was estimated at 27,968,000 bushels, which is
the smallest amount since the low reserves of the
spring of 1919. Only 5 per cent of the last year's
crop was shipped out of the counties where grown.
The report states further that it has been necessary
to import an unusually large amount of corn this
year. A similar situation obtains in New Mexico,
where the supply remaining on farms is insufficient
to meet the requirements until harvest.
On the other hand, the amount of oats remaining
on Te:x;as farms was estimated at 11,291,000 bushels
as against 5,689,000 bushels last year. Hay supplies
on farms were estimated at 328,000 tons as compared to 311,000 tons the preceding season.
In response to an inquiry sent out
by the Federal Reserve Agent to the
member banks of the district in regard to the prospects for feed crops during the present season, numerous letters have been received
from bankers throughout the district. The outstanding feature of these replies is the almost
Feed
Prospects
4
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
unanimous opinion that the cotton acreage this year
will be substantially increased. In many sections
this action will result in a corresponding retluction in
feed crops. The danger of such a situation should
not be overlooked. The greatly increased cotton
acreage involves the hazard of an overproduction of
cotton, which would have the effect of materially
reducing the money return from the crop. Furthermore, it would necessitate the importation of a larger
amount of feed to make the 1925 crop. 'l'he seriousness of the situation is augmen~3d by the fact that,
according to the Department of Agriculture, the
present reserves of corn on farms in this district are
the smallest since the low reserves of 1919. Should
there occur a break in cotton prices similar to that
in 1920, the year 1925 will be a disastrous one for
those farmers who do not have a feed supply. Such
prospects should not be passed over lightly.
Many replies indicate that even where the farmers
have had the intention of planting a sufficient acreage to feed crops, they are now becoming disheartened because of the rains which have delayed plowing, and are expressing their intentions of abandoning the idea of planting feed in favor of a larger cotton acreage. It should be borne in mind, however,
that, notwithstanding the lateness of the season, the
abundant moisture in the soil will probably permit
planting as late as April 1st and should carry the
grains well through the summer.
It is encouraging to note that a concerted effort
is being made by the bankers of the district to obtain a larger acreage of feed crops. A plan put forward by some bankers is to have their farmer customers raise a two years' supply of feed so that in
case of a failure one year they will have a sufficient supply to carry them over. Other bankers are making it plain to their farmer customers that they will not furnish them accommodations unless they attempt to raise their own feed
supply. Still others, especially in East Texas, are
encouraging greater feed production through a cooperative effort to place fertilizer in the hands of
the farmers.
A resume by sections is given below:
North Texas-There will probably be a sufficient
feed supply raised. A normal acreage of corn will
be planted, but the acreage of wheat and oats has
been reduced. The cotton acreage will be increased.
East Texas-On account of the low yield of corn
last year and the large returns from cotton, the
farmers are showing a disposition to plant a large
acreage of cotton at the expense of feed crops. The
seriousness of the situation is augmented by the fact
that the present supply of feed is short and it will
be necessary for the banks to finance the purchase of
a sufficient supply to make this year's crop.
Central Texas-The feed acreage will be reduced
and the cotton acreage increased. The lateness of
the season and the high price of cotton are causing farmers to plant more cotton.
South Texas-Indications are that in most communities a sufficient supply of feed will be raised.
There is a possibility of a slight increase in the cotton acreage.
West and Northwest Texas-Most of the farming lands in this section were planted to grain and
other feed crops until about two or three years ago.
While enough feed is always produced to supply local
needs and some is shipped out, the success of cotton
raising during the past two years has caused the
farmers to greatly increase the cotton acreage and to
reduce the feed acreage.
Oklahoma-The failure of feed crops last year has
caused farmers to plant a larger acreage this year.
In a majority of the communities it is reported that
about fifty per cent of the land will be planted to
feed crops and fifty per cent to cotton. The bankers
are almost unanimous in their warnings to farmers
that they will rigidly restrict loans to buy feed after
this year, becaus.e under normal conditions the yield
of feed crops is abundant.
Cotton
Movements
The movement of cotton through
the port of Galveston showed a
further decline during the past
month. February receipts were 125,446 bales less
than in January, but were 15,004 bales greater than
in February, 1923. Exports were 82,021 bales less
than in the previous month, and 23,046 bales less
than in the corresponding month last year. Stocks on
hand at Galveston declined from 325,013 bales on
Janual'Y 31st to 261,692 bales on February 29th. It
is to be noted that on February 29th for the first
time this season the amount on hand in compl'esses
and warehouses was greater than on the corresponding date of the previous season.
The February exports through the port of Houston amounted to 67,428 bales, being slightly less than
in January, but 29 per cent greater than in the corresponding month of 1923. Net receipts for February amounted to 54,341 bales as against 26,179
bales in February last year.
Stocks at all United States ports on February 29th
were 794,541 bales, which is 72,649 bales greater
than on that date a year ago.
5
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
§IIIII~IIIIIIIIIII""IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;
§_'
MOVEME~tJ:S~~~GH
COTTON
§
F ebr uary
I
gross receipts........
..................
§ tocks, Feb. 29th....
11 ~ Xports
F ebruary
THE PORT OF
Aug . 1 to F eb. 29
Thls
Last
1~~,:12 218,919
1~~~608 2,389,566
2,~;~8,~87 2,021,425
2,~;~,c;77
195,873
............
............
261,692
I~_
§
239,587 §
1111111111111111111111111111111111111111111111111111111111111111111'1'1111111111111111111111111111111111111111111111111111111111111111111111111111111111111'=
GALVESTON STOCK STATEMENT
~r Great Britain................................
Por France ..........................................
F r other foreign ports......................
InG~o~a;!wise ports............................
.p sses ......................................
§
Total................................................
F eb. 29.
1924
I~
~
I
~
12,894
7,100
25,408
6,000
210,290
6,772
900
35,950
7,500
188,465
261,692
239,587 ~
47,881\ 955,015
............ 232,571
650,753
175,861
¥o~t~IC~o~~ig~"p~~:t~
Stocks at all U. S Ports, F eb.
29th ........................................
";':ti:i~ Lf;!!i~!i I
1,723,466
451,199
1,500,257 ~
411,754 §
'1,15~:~~~ 3,5~~:gii
i
§
~
794,541
721,892 ~
::
E
:.11111111111111111111111111111111111 11 11111111111111111111111111111111111 11 1111111111111111111111111111'1111111111111111111111111111111111111111111111111111111111111.
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I
ii~~:i~~_g~:~:~STF;~:~;:T:~~;~:i~~~:~~~: I
67,428
............
Continent ................
Japan-China ............
~
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~""""
I
I
F eb. 28,
1923
E111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1'.
~ Sto~~~~sF~b: '29th::::
~EASON 'S RECEIPTS, E XPOIDrS AND STOCKS AT ~
ALL UNITED STATES PORTS
I t~~~ ~::;~B~;a~;t
§
~::::::::11111111111111 11111I11111I11I111111I1I1111111111111111111111111111111111111111111111111111111111111111111111111111111 111111111111111111111111111111111111111~
::
~1111I11111I11I111I11I11I11111111111111111111111111111111111111111111 11111111 1 111111111111111111111111111111111111111111111111111 11111111I111111111111111111111111111~
~
§
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~
New York.......................... ..... ..
New Orleans..........................
c
Dallas .......................................
Houston ..................................
§ Galveston ...............................
i
~
~
(Middling Basis)
§
Ii
I
SPOT COTTON PRICES
~
:~:.::ry. 1~;.00 Ma~~;~;~ I
34.50
33.95
34.65
34.85
29.25
28.50
29.00
29.20
29.38 ~
. 28.65 =
29.35;
29.65 §
~
~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 11111111111111111111111111111111111111111111111111111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~
LIVESTOCK
d' Li~estock and range conditions throughout the
t~stl'lct have shown a further improvement during
e past month. While heavy snows and low temperat ures over a large portion of the range territory
~~used the stock to shrink considerably and retarded
e growth of weeds and grass on the ranges most
of th e I'Ivestock have come through in good condition
'
and but few losses have been reported.
th The condition of Texas ranges was reported by
e Department of Agriculture to be 91 per cent of
nor~al on March 1st, which compares to 89 per cent
~h'l ebruary 1st and 84 per cent on March 1, 1923.
fIe there was some deterioration in the condition
~ ~attle in West Texas and in the plains section due
; ow temperatures and heavy snows and in East
exas on account of the shortage of feed the aver;~e condition for the state as a whole r~mained at
th per cent of normal. This was 6 points higher than
1 e condition on the same date of 1923. The March
st condition of sheep was two points higher than
on February 1st and 7 points higher than on the
corres pon d'mg date of last year.
Movements
The February receipts of all classes
of livestock reflected a substantial
decr~ase as compared to January,
b
.
.
ut slIght mcreases m the receipts of all classes ex-
and Prices
cept hogs were registered as compared to February,
1923. The supply of livestock coming on the market
during the past month was fairly well in line with
that of recent years.
Market prices as a general rule were satisfactory
during the month. There was a strong demand for
sheep and lambs at all times, and receipts continually fell short of trade requirements with the result
that some attractive prices were paid. Fat lambs
sold as high as $14.00, while feeder lambs sold for
$13.50. Sheep values reached the high point of the
year; wool ewes ranged up to $9.25; fall shorn
wethers brought $9.00; and freshly shorn wethers
sold for $8.25.
The prices being paid for
sheep at the close of February were fully $1.25
higher than at the close of the previous month, and
lamb prices were $1.00 higher. Cattle and hogs sold
on a fluctuating market throughout the month, but
at the close cattle were selling well in line with
prices at the end of the previous month and hogs
had gained ten cents. Calves gained fully 75 cents.
While the receipts of hogs at Fort Worth were never
sufficient to meet the requirements of packers, the
large numbers brought in from other centers were
sufficient to hold quotations well in line with those
at other centers.
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
6
~:_; "·"·"'--:~::::;::~~:::::·'::::;:=·~"·"'Ii
§
§
!
§~
~
E
=
1924
1924
Ga in
1928
Ga in
I
Cattle ...... 44,567 67,032 L 22,465 35,841 G 8,726 i
Calves ...... 9,460 19,375 L
9,915
7,295 G 2,165
708 !~
Hogs ....... ,43,135 53,332 L 10,197 43 ,843 L
Sheep ...... 9,085 14,849 L
5,764
5,912 G 3,173
I
!
~lIttllltlUltlllllHlII1IIlItlttUltllllllllttlllllllllllltllllllllll1l1l1tllllllltlttlllllllllltlltlllllllllltlllllllllt1IIIIIIIIIIIIIltllllt1lfllllllllllllllllll '
~
COMPARATIVE TOP LIVESTOCK PRICES
~
~
=
=
~
Beef steers..............................
Stocker steers ........................
~ Butcher cows..........................
~ Stocker cows..........................
ii Calves ......................................
~ Hogs ........................................
;; Sheep ......................................
§ Lambs ....................................
i
February
1924
$ 8.50
6.25
5.75
3.75
8.50
7.65
9.25
14.00
Janua ry
1924
$ 8.50
7.15
6.35
3.75
7.50
7.80
8.50
13.50
I
,F ebruary
1928
$ 8.75
7.30
5.50
4.00
9.00
8.50
9.00
14.50
E ~
i
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i
o:illlllllllllllllllllllllllllllllllllllfllltlllllllllllllllllUllllllllllllumnlllllltlllHlllltlllllttUlI11111111111111111111111111111111«11111111111111"11111;':
TEXTILE MILLING
The February production of twelve textile mills in
Texas amounted to 1,920,773 pounds as compared to
1,958,072 pounds in January, and 1,817,725 pounds
in February, 1923. These mills were operating 117,152 spindles during February as against 114,692 in
January and 104,304 during the corresponding
month of last year. The February consumption of
cotton amounted to 4,385 bales as compared to 3,908
bales in the previous month and 3,849 in February,
1923. Unfilled orders on hand at the close of February were considerably below those on hand at the
end of either the previous month or the corresponding month a year ago. Stocks, on the other hand,
are increasing.
Cotton goods prices have shown a downward trend
during the past month, following the decline in raw
cotton prices. Due to the unstable condition of the
market, buying has been limited to actual needs.
( ""'111"""1""111""""11110"""111111111111111111111111111111111111111111111111111111111111111111111"111"""""1"111""""""111""111"'""111'
=:!~_ N~~~~ ~~~:~;~~~~~1:~;'::1:~~~:91 J"~:~:8 "
Number spindles active....
117,152 104,304 114,692
Number pounds cloth pro1
1
duced ................................ 1,920,773i1,817,725 ,l,958,072
=
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WHOLESALE TRADE
While some lines of trade in the wholesale channels of distribution reported smaller sales' in February, due principally to the short month and bad
weather, an active demand was in evidence throughout the month. Although sales of drugs, farm implements, dry goods, and furniture were smaller
than January sales, all reporting lines of trade except furniture reflected large gains in sales as compared to the corresponding month of 1923.
Contrasted with the situation which obtained a
year ago when there was a shortage of goods in
some lines and when dealers were showing a disposition to anticipate consumer demand, conservatism is now the ruling factor in business. However,
the fact that an over-extension of commitments is
being avoided strengthens the outlook for the future.
While buying as the need arises is the prevailing policy, in many cases frequent purchases are being
made to replace depleted supplies.
In most cases prices are holding steady, but a decline on some articles has been noted, particularly in
cotton goods.
Many dealers report that collections have shown a
general slowing down. Despite the fact that collections generally slow down at this season, this situa-
tion is not altogether encouraging in view of the
good financial conditions prevailing at this time.
Dry
Goods
The active demand for dry goods
which materialized in January was
well maintained during the past
month. The February sales of twelve firms were
only 2.2 per cent below January sales despite the
short month and reflected an increase of 19.4 per
cent over sales in February last year. Sales for the
first two months of the year were 20.5 per cent in
excess of those during the corresponding period of
1923. Although unfavorable weather conditions have
greatly restricted purchases, buying has been active
and is expected to increase as the season advances.
The recent declines in the price of raw cotton have
had an unsettling effect on the cotton goods market. Furthermore, it is causing greater caution
among buyers in regard to placing commitments for
future delivery. Lowell' prices are now being quoted
on some lines, notably ginghams and sheeting. Silks
are also slightly lower.
Conservative buying is a prominent feature of the
trade. Buyers are following the policy of making
purchases on a basis commensurate with well defined
needs.
MONTHLY REVIEW OF BUSINESS AND
The outlook is good for a comparatively large distribution during the spring.
Farm
After showing a substantial inImplements
crease over each previous month
since August, 1923, the sales of reporting farm implement firms during February refleeted a decline of 14.5 per cent as compared to
January sales. However, the large increase of 89.2
per cent as compared to February, 1923, indicates
the greatly improved distribution of farm implements which is now being obtained. The present demand for farm implements is heavier than it has
been since 1920.
The continued wet, cold weather, which has greatly retarded farm operations, has naturally slowed
down the demand for implements at retail. However, as soon as weather conditions enable the farmers to resume work an improvement in the trade
should be noted. It seems evident that there is a
large potential demand for implements in view of
the improved condition of the farmer and the depleted supply of farm machinery in his hands.
The present situation is somewhat different from
that which obtained a year ago. Although distribution Was large during the first few months of 1923,
the shortage of goods in the hands of manufacturers
curtailed distribution to some extent. Furthermore,
the manufacturers were forced to raise prices on account of the ever-increasing cost of production and
this fact naturally caused farmers to become more
and more hesitant about purchasing new implements.
This, year prices have remained on a steady basis
~hroughout the season, which in turn has tended to
' Increase the confidence of buyers.
Dealers generally are very optimistic regarding
the outlook for the,current year.
Hardware.
The February reports from twelve
wholesale hardware firms reflect an
increase of 5.2 per cent in sales as compared to the
previous month, and an increase of 19.2 per cent as
compared to February, 1923, sales. Dealers state
that the buying demand is good, but that purchases
are being made on a conservative basis. The continued active building operations have maintained
INDUST~IAL
CONDITIONS
7
the heavy demand for builders' hardware, which has
been in evidence for some time.
Prices on some articles have reflected slight declines, but these have been offset by advances on
other items.
Drugs.
While the February sales of eight
wholesale drug firms were 9.8 per
cent less than the January sales, they were 17.3 -per
cent greater than sales in February last year. Sales
for the first two months of this year were 13.8 per
cent in excess of those for the corresponding period
of 1923. Buying for immediate needs has been good,
but retailers have shown no disposition to place orders for forward delivery. The drug trade has shown
a considerable improvement during the past -y ear
and dealers state that the outlook for the current
year is good.
Prices have shown a tendency to strengthen.
Furniture.
The furniture trade experienced the
usual February quietness during the
past month. Sales reflected a decline of 1.9 per cent
as compared to the previous month, and a decline
of 6.3 per cent as compared to the corresponding
month a year ago. The retail distribution of furniture in the country sections has been greatly retarded during the first two months of this year because
of inclement weather and bad roads. However, reports are to the effect that building operations in
these sections are active, and it is to be expected
that a good distribution will be obtained during the
next few months.
Groceries.
Although there was a heavy demand
for groceries in January, the February sales of reporting firms were 2.1 per cent
greater than in the previous month. It is to be noted
further that sales were 24.1 per cent greater than
in the corresponding month a year ago, while in January they were only 16.4 per cent greater.
Late reports indicate that buying early in March
was well in line with that dUring the first two
months of the year. Prices generally have remained
steady. Dealers state that the outlook for the next
few months is very promising.
~""'III"II1"I"I"ltN"tl"II'lttltlltll"ltlll'llllllllllllllIllI1IIIIIIIIIIIIIHlllltllllnlllllllnIIlIlUINIIIHlllm",ntnlttM"",""",","II,""",,,"",",",,"",,",'NlMftlIHtlllllltttIIIlHtN'llnIIIHItIIIIUlflllllllllllllttltlllllllllIllItHIIIIIIIIIIIII"I"I"I"ItIlIIIt""'nlt"'"""",*,"~
~
~
:: -
~
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Fe~<;;~~1e;'u24
Jan,
l~ct, S~!: Com-
Febr~~~81924
=
~
Fe~:.:::redJ:':~~ry ~~ri~ '1~t ~~ Fe~;:::;ed J':~:'rY ~
I t~~~I;~~~t~
t1~:! +"i:~ ::H
I~~~;;;; . : ::::: : :::: : : : : : : ::::::::: : : ::: :::: : ::::: n!:l j:i :::H:~
.......
~
~
CONDITION OF WHOLESALE TRADE DURING FEBRUARY, 1924
Percentage of Increase or Decrease in
::::: ":~::!
::: &: H:~ I
-ihitntttlt""mtttnltttn"nnt",.",rittmtNtMtHIKlII""'tttMllltttlllllllllnmllttlllllllltt"flIIIIIIUlllmtftft,"n"tI"""ttlIIIM''""tNIMnIHIIIIIIIIIIII1I1I1I1I1II1IIIItulltlIlIlIlIIllIlUIIIIIIIIIIIIIIIIIII"flftltllllnlllUtlllllIIIflllIIlI1l1lnlllf",tml"",,"""",Ulm'~
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
8
RETAIL TRADE
The February distribution at retail was mainThe ratio of outstanding orders to last year's purtained at a fairly high level. While the sales of chases at' the close of February was 8.2 per cent as
twenty-four firms declined 5.9 per cent from J anu- compared to 8.7 per cent at the close of January
ary sales, due to seasonal influences, they were 11 and 9.2 per cent at the close of February, 1923.
per cent greater than February, 1923, sales.
February collections reflected the normal slowing
Stocks on hand at the close of February were 10.7
per cent greater than at the close of January and down at this season of the year. The ratio of Feb10.6 per cent greater than those carried at the close ruary collections to accounts receivable on February
of February last year. The ratio of stocks to sales 1st was 38.5 per cent as compared to 40.0 per cent
for the first two months of the year was 508.1 per in January and 38.2 per cent for February a year
cent as against 478 per cent for the corresponding ago.
period of last year.
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~
I
I
BUSINESS OF DEPARTMENT STORES
D.,,~
Total 8.1,,-
February, 1924, compared with February, 1923..............
i
F ebruary, 19 24, compareddwi~thhJanuary, ~92d41.... ·t.......... ·
J an. 1st to d ate compare WI same perlO as year
Ii
Credit Sales;;
February, 1924, compared with February, 1923..............
~
February, 1924, compared with January, 1924................
;;
Jan. 1st to date compared with same period last year
i
i_! ~ Stoc~sebruary,
1924, compared with February, 1923 ............. .1
February, 1924, compared with January, 1924................
I Ratio of stocks to sales................................................................
Ratio of outstanding orders to last year's purchases............
i
i
Rati~n1 !~~~~~~rn~o~:~~i~~sl~~4~~~.~.~.~~.~.. ~~~.~.i.~~~~~: ..~~~
F." w.,"
A"
&",".
+14.7
+ 1.0
+10.5
+10.0
+ 6.1
+ 7.8
+ 5.8
- 9.4
+ 6.7
+18.0
+ 5.4
+ 12.6
+14.2
+10.9
+ 10.2
+ 7.8
+13.2
465.4
9.6
37.0
O",~
~
'''ru m" ,;"
1=_'
+ 10'.0
-16.5
+ 7.9
+11 0
5:9 ~
+ 8.6 ;;
+190
- 4:6
+14.7
+11.7
-15.6
+11.2
+16.0 ;;
_ 2.6 ~
+12.3 ;;
+ 4.1
+11.3
609.5
9.3
+11.1
+ 8.1
459.6
5.7
+16.0
+11.4
540.1
5.9
+10.6
+10.7
508.1
8.2
35.3
42.0
40.2
38.5
~
;
~=
~
2
I
=
7.111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;
FINANCIAL
Checks charged against individual accounts at
banks in fifteen cities of the Eleventh Federal Reserve District amounted to $572,857,000 in February
as compared to $666,375,000 in January and $602,287,000 in February, 1923. The decline of 14 per
cent from January was due to the short month of
February and to seasonal influences. As compared
to a year ago, all cities except Fort Worth, Galveston,
and Texarkana showed a gain, but the large decreases at the above cities offset the increases at
other cities, causing a decline of 4.9 per cent for the
distriCt as a whole.
~""'""'""I10""I10"""'''''''''''''''''''''''''''I10''''''''''''''''III''I10I10'''''I10''''''''III"'""~~~':;'~;~"";'~""~;';'~~';;~;'~~"':~~~'~;~'~"""""111"""""''''''"111111""1111''''""''111''""''"''''''""''''"'''''''''''''''''''''1
. : :::: : :::: : :::::: ::::: :::: : : : ::: :: : :
!~~~r:e.~:.~.
~
Beaumont ...............................................................
~F~:::~::
:
F ebruary, 1924
$
1~:~~~:~~~
15,913,000
l;U:l:!:!
F ebr ua ry, 1928
$
1~:~~~:~~~ ++~~:~
4.6
15,220,000
l~i:m:ggg
Fort Worth ............... ..............................................
Galveston ...............................................................
Houston ...................................................................
Roswell ....................................................................
San Antonio ...........................................................
Shreveport ................................................... _.........
Texarkana ..............................................................
Tucson .....................................................................
Waco .......................................................................
63,746,000
37,730,000
114,001,000
2,858,000
30,685,000
35,790,000
7,984,000
18,409,000
105,992,000
73,963,000
99,384,000
1,920,000
26,826,000
29,428,000
10,948,000
6,475,000
16,184,000
Totals, Eleventh District ...........................
$572,857,000
$602,287,000
,1111111111111111111111111111111111 11 1111111111111111111111111111111111111111111111111111111 111111111111111111
7,9~1,000
Inc. or Dec.
i:!:!
-39.9
-49.0
+14.7
+48.9
+ 14.4
+21.G
-27.1
+22.6
+13.7
-
4.9
January, 192'4
$
. Inc. or DI!C.
~
~~:~~~:~~~
=1I:~
a_~= §
17,734,000
-10.S
'itm:ggg
+:u 1.=
76,408,000
51,954,000
129,103,000
2,314,000
34,513,000
39,874,000
8,422,000
7,693,000
21,422,000
-16.6
-27.4 =
-11.7 1=_
+23.5
-11.1 ~= :=
-10.2
- 5.2
+ 3.2 I
-14.1 ~
$666,375,000
- 14.0;
1I1111111111111111UNt"1111I11I1111II1I1I1111111I1I111 1II1I1111ll1II1I1I11I1II1I1111II11IIIIIIIIIIIIIIIIIINllllllllllllllllllllllllllllllllllllllllllllilrIIIIIIIIIIIIIIIIIIIIUIIIIIII1III11I1IIUIINIIIIIUINIlIllIltIllIltIII~
---------------------------------------~----------------------------------------------~---------
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIOl':-TS
Acceptance
Market.
The volume of acceptances executed
by accepting banks of this district
that were outstanding at the end of
February reflected a further sharp decline as compared to those outstanding at the close of January.
The heavy reduction during the past two months
represents a seasonal trend. The total volume of
acceptances outstanding on February 29th amounted
to $817,653.25 as compared to $1,713,683.50 on January 31st. The amount based on the domestic shipment and storage of goods declined from $697,028.00
on Jan'uary 31st to $253,372.25 on February 29th,
and those executed against import and export transactions decreased from $1,016,655.50 on January
31st to $564,281.00 on February 29th. The holdings
of the Federal Reserve Bank of this type of paper
reflected a slight decline during the month, being
$42,023,654.70 on February 29th as compared to
$43,895,031.89 on January 31st.
Condition of
Member Banks
in Selected
Cities.
There was a further reduction of
$12,023,000 in the net demand deposits of fifty-two member banks in
selected cities during the five weeks'
period between January 30th and
March 5th. On t he other hand, their time deposits
rose $2,356,000 during the same period, reducing the
net decline of total deposits to $9,667,000. Following the downward trend of deposits, the reserves of
these banks declined from $27,102,000 on January
30th to $25,993,000 on March 5th. The commercial
loans of these banks amounted to $214,465,000 on
March 5th as compared to $222~ 019,000 on January
30th, representing a net reduction of $7,554,000 during the period. Their bills payable and rediscounts
with the Federal Reserve Bank reflected a slight increase, being $4,487,000 on March 5th as against,
$4,367,000 on January 30th. Due to the heavy withdrawal of deposits, the ratio of loans to net demand
deposits rose from 90 per cent on January 30th to
91 per cent on March 5th. The ratio on the latter
date was four points higher than on February 28,
1923.
SIlIIIlIIIIlIlIIIIIlIIIllIllIIlIllIllIl1IIII1II1IIIIIIIIUIIIIIIIIIIIIIIIIIIIIIII1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111<
:
t ~~~~:~~~~:o:~~;;~~;:S~:~;:~'I~:~~:~:::~~~~KS:;;::.~rD:~~;;~;i! '; ~:; ~; i~
~
4.
5.
1_=1
All other stocks, bonds and securities owned........................................
Loans secured by U. S. Government obligations................................
Loans secured by stocks and bonds other than U. S. Government
I! I: ~i~:~¥;~r~~e~~~.~
1~: ~iw~r;:yW~ih Fedder~~ Rese~ve ~~n~··d······i··R·············B·····k················
~tio of.foa~sa(* ) r:o.IJ~~~ud:!~ld de·;os~~!......~~.~~~~.....~.~ ..::::::::::::::::1
I",,,",,,,11.
oans Include only Items 4 and 6.
3208000
"
7852000
,
,
i=_==1
_
3163000"~
~iH!H!!
~~~t~Ut!!1
~ntH!tm!
2~,~~~,~~~
2~'6~~'~~~
2g~~,~~~!
"
91 %
"
87 %
,u, 90 %
!
§
11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111l1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111\O~
Operations of There was a slight increase in the Loans on February 29th were $6,731,998.17 less than
the Federal
amount of accommodation extend- on the last day of February a year ago.
Reserve Bank. ed member banks during the past
The total volume of bills held reflected a slight
,
month. Loans on February 29th decline during the month, being $53,470,125.04 on
J'Vere $10,181,250 as compared to $9,575,093.15 on January 31st as compared to $52,204,904.70 on Febbanuary 31st. While bill-of-lading drafts and mem- Tuary 29th, distributed as follows:
er bank collateral notes steadily declined, there was ~'IIIIIII"11I11I1tI1I1I11I111111111111111111111111111111111111111111111111111111 1I1111111111rlllllllllllllllllllllllllllllllllllnlllllllllllllliiIIIIIIIIIIIIIIIII';!
~. Member banks' collateral notes secured by
§
a gradual increase in the number and amount of §
U. S. Government obligations ................ $ 1,441,050.00 il
Dotes
r ed'Iscounted. A seasonal upward trend m
.
§ Redi scounts and all other loans to member
il
th
§
banks .......................................................... 8,740,200.00 ~
F ~ demand for bank credit manifested itself during § Open market purchases (Bankers' acceptg
ances) ........................................................ 42,023,654.70 §
t~ ruary. The number of banks borrowing from il
e Federal Reserve Bank increased from 110 on JanTotal bills held ..........................................$52,204,904. 70
Uary
31 s t to 141 on February 29th, Qr an mcrease
.
P.IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111111111111111 1 11111111111111 1111 111111111111 111111111111111 1111 IIIIIIIIIIII"IIII~ '
f
Federal reserve notes in actual circulation on
o 31 banks. It will be noted, however, from the
accomp
.
R
anymg chart that the demand for Federal February 29th amounted to $44,800,160, which was
eserve credit is substantially less than a year ago. approximately $1,000,000 less than those in circu-
I
i
10
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
lation on January 31st, but $14,000,000 more than
those in circulation on February 28, 1923. The reserve deposits of member banks amounted to $56,-
487,507.31 on February 29th as compared to $57,964,141.21 on January 31st, reflecting a net decline
of $1,476,633.90 during the month.
LOANS OF THE FEDERAL RESERVE BANJK O'F DALLAS TO MEMBER BANKS DURING 1922, 1923, AND 1924,
Deposits of
A $30,095,000 decrease in demand
Member Banks. deposits was reflected by the reports from member banks in the
Eleventh Federal Reserve District between January
23rd and February 27th. However, there was an
increase of $5,963,000 in the time deposits of these
banks during the same period.
:lIlIlIftltlltllllllllllllltl1ll11l1ll1l1ll111111111111111111111111111111111111111111111111HIIIIIIIIIII1IIIIIIII1IIIIIIIIIIIIIIIIIIItIflIlIHfllhllltHtttlUtnt1l1l1l11mhtllt"""'HII"Utmnnllll"ntllllnll"'1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111
§
!
"
A:o:_W ::~
=
Demand
~ April 26, 1923______________________ 627,082
§ May 23, 1923 __________ ____________ ._
§
§
§
§
§
~
§
~
~
~
DEPOSITS OF MEMBER BANKS
(OOO's Omitted)
~
614,274
June 27, 1923_______________________ 496,227
July 25, 1923________________________ 485,644
Aug. 29, 1923__ ______________________ 501,088
Sept. 26, 1923..._____________________ 574,421
Oct. 24, 1923________________________ 629,944
Nov. 28, 1923__________ __ ____ ________ 654,398
Dec. 26, 1923__________ ______ _______ _ 646,691
Jan. 23, 1924...__ __ _________________ 624,577
Feb. 27, 1924...__ __ _____ ____________ 594,482
~
I
E
=
Time
138,213
139,612
141,261
139,868
139,356
139,472
139,723
143,713
144,711
161,263
157,225
1
6
1
7
2
6
4
3
4
3
9
~
E
§
§
§
§
§
§
§
§
~
;"nlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllill1I11l1l11l1111l1l11l1l11l1111111l1l1111ll11l1l1111l1l11111111111111111111111111111t1ll11111"11,11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111Illlllllllllllllllllllllllllllllllllllllllltllllllltlllllllllli:
12
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
FAILURES
A further improvement occurred in the business 548 as compared to $1,170,988 in January and
mortality rate in the Eleventh Federal Reserve Dis- $2,104,596 in February, 1923.
trict during Fe~ruary, the number of insolvenc~es
The combined statistics for all Federal Reserve
being 57 as compared to 68 in January and 91 in
February, 1923. It is significant to note that the Districts show the total indebtedness of defaulting
February defaults were fewe~ in number than in any firms during February to be $35,942,037 as commonth since November, 1920. The total liabilities pared to $51,212,508 for January and $40,627,939
of failures reported in February amounted to $1,280,- for February, 1923.
~lllIlltIlllllllI11III11I1I11II1I1IHItIIIIlIIlI1IIIII1I'111I1I1111111I1I11I1I11I1II 111111111111111111111111111111111111111111111111"11111111111111111111111111111111111111111111111111111111111111 1 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;:
§
~
COMMERCIAL FAILURES
F ebruary. 1924
I
No.
Total ............................................... ............................ ..
Amount
150 $ 4.637,721
262
8.883,288
1,024,670
58
121
6,293,852
109
2,452,891
4,029,704
135
195
3,081,365
1,008,734
81
2,217,789
72
1,154,384
89
91
2,104,596
145
3,738,945
1,730 $35,942,037
1,508 $40,627,939
§=§
~
No.
140 $ 2,608,111
300
5,594,337
82
2,376,178
135
2,824,143
3,456,937
128
2,361,030
129
8,733,400
243
1,489,558
97
1,216,850
85
1,968,081
129
1,280,548
57
2,032,864
205
Boston .................................................................................
§ New York ...........................................................................
Philadelphia .......................................................................
Cleveland ......................................................................... ..
~
·Richmond ..... __ ......__ ... ___.....__ ._.... __..................-___ ............... .
I= = : Atlanta -... -----.......---..... ----------.--... ---................................... .
Chicago .............................................................................. .
St. Louis ............................................................................ .
Minneapolis ..................................................................... ..
Kansas City ...................................................................... .
DALLAS .............................................................................
San Francisco .................................................................. .
~=:_
Amount
11
February. 1928
January. 1924
No.
Amount
~
I
203 $ 7,173,862
8,884,038 §
407
2,157,916 §
113
6,160,933
175
3,505,170
152
2,452,051
136
251 12,641,812
1,669,880
143
1,129,225
104
2,035,090
168
1,170,988
68
2,291,543
188
2,108 $51,272,508
:;11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111"1111:11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIIIIIIUllllllllllllllllll llllllllllllllllllll lllllllllllii
PETROLEUM
While the actual production of crude oil in the
Eleventh Federal Reserve District declined from
12,024,107 barrels in January to 11,788,766 barrels
in February, on account of the shorter month, the
daily average yield amounted to 406,509 barrels for
February as compared to 387,874 barrels for January, reflecting a net gain of 18,635 barrels. The
general revival of drilling activity following the
steady upward trend in crude oil values began to
manifest itself in February, when there was an increase in the number of wells completed. The February completions show 310 wells with 208 producers, which compares to 223 completions in January with 163 producers. A substantial increase was
also registered in the amount of new production
added. The initial yield obtained from the successful completions in February amounted to 84,851
barrels as against ~8,071 barrels in January. There
was a gain of 17,870 barrels in the daily average
output of Texas fields, being 347,532 barrels in February as compared to 329,662 barrels in January.
February drilling operations netted 280 new wells,
of which 182 were successful as compared to 193
completions in January, including 138 producers.
The new production added in February amounted to
81,595 barrels as compared to 26,949 barrels in January. Increased drilling operations have been noted,
particularly in the North and Central-West Texas
districts.
The Louisiana fields registered the same number
of completions in both January and February, but
the initial production from the 26 producing wells
completed in February amounted to 3,256 barrels as
compared to 1,122 barrels in January. The February
daily average output gained 765 barrels as compared
to the previous month.
Crude Oil
Prices.
A further general advance in crude
oil prices has been posted during the
past month. An increase of 60 cents
PCI' barrel was posted on Corsicana light oil; 25
cents on North Texas and Currie oil; 15 cents on
Mexia oil; and from 10 to 15 cents on Louisiana oil.
This situation reflects the exceptionally strong demand for oil which has been in evidence for some
time.
-
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
BANK CREDIT
The volume of borrowing for commercial purposes
at member banks in leading cities in the early part
of March continued the increase which began in the
latter part of January, and on March 12th total loans
of the reporting banks were higher than at any time
since the seasonal peak at the turn of the year, and
about $275,000,000 higher than a year ago. At the
Federal reserve banks during the four-week period
ending March 19th a further decline in the volume
of discounts for member banks and of acceptances
Was offset bY' an increase in the holdings of United
--
15
States securities, so that total earning assets were at
about the same level as in Februar-y. Federal reserve note circulation continued to decline while the
total money in circulation increased.
Easier money conditions were reflected in a slight
decline in rates for commercial paper to 4% per cent
and also in lower rates for bankers' acceptances and
reduced yields on treasury certificates. The March
offering of $400,000,000 of one-year treasury certificates bearing interest at 4 per cent as compared
to 4%, per cent on a similar issue sold in December,
was oversubscribed.
PRODUCTION IN BASIC INDUSTRIES
putC:nn
I 50
...
l ~'~r.:.
-
•
~
,
pj
~~
"
•
~
, ~ '::ill,
100
&
.,
50
o
19 19
o
1920
1921
1922
1923
192 ..
So~~dex ~f ~2 basic commodities corrected for sea-
121~1 varIatIon (1919=100). Latest figure, February
Index of U. S. Bureau of Labor Statistics.
(1913=100, base adopted by Bureau.) Latest figures, February 152.
L Weekly figures for 12 Federal Reserve Banks.
atest figure, March 19.
Index for 33 manufacturing industries (1919=
100). Latest figure-February 99.
The following leiter to member banks in the Eleventh Federal Reserve District is being issued simultaneously with this issue
of the REVIEW, by Federal Reserve Agent Talley:
COST AND PRICE
Recent rep(}rts are to the effect that the Eleventh District's cotton acreage for 1924 will be considerably larger, and
the cost of producing the crop will be materially higher, (pan
in 1923. The acreage expansion can (}f course be attributed
in a large measure to the price received by the growers for
last year's production. That there is also a definite relation
between last season's price level and the current season's
production costs is a fact that is perhaps not so generally
recognized, but one that deserves the closest attention by all
who are genuinely interested in the progress and welfare of
our leading industry. The situation, theref(}re, seems to maIce
this an appropriate time t() call the attention of! our member
hanks to some of the fundamental factors that enter into the
relation between the cost and price of C(}tton, using the term
"cost" in the broader sense to cover the producer's expenditures during the crop-gmwing season.
Unlike the merchant or manufacturer, whose operating
policies are predicated upon the inflexible rule that costs
must ALWAYS be held down to an irreducible minimum, the
farmer usually relies upon the price received for the previous
s(!ason's crops as the basis for determining the amount of
fund!> he may safely expend during the current growing season. For examille, it will be rccalled that much of the distress
in which our farmers found themselves in the fall of 1914,
when the outbreak of the war forced the price of cotton below": cents per pound, was largely due to the fact that at the
time the cr.op wus planted spot cotton was communding 12 to
13 cents per pound, and the growers had adjusted their production outlay accordingly. On the other hand, in the spring
of the following year, In5, the prevailing price was only 8
cent;;; Iler pound, and although the 1915 crop was produced on
8-cent price basis, the market advanced to 11 cents in the
fall .!llld yielded the producers an unexpected return.
Then in 1920 the disastrous cotton history of 1914 repeated itself, when a Cl'OP planted while the price was around
the 40-cent level wus sold on the average at the 15-cent level.
These references to the past would, of course, serve no
useful purpose now if it were true that production costs were
no more suiJ.ject to the Ill'oducer's control than is the price
he receives 1'01' his product. But so long as the farmer is free
to decide (1) the amount of acreage he can successfully cultivate; (2) whether his crops will be produced by himself or
by hired labor; (3) whether he will mise his OWll living at
home, or obtain it by llUrchase; and (4) whether he will adollt
an economical or extravagant standard of living-he cannot
escape the realization that his crop production costs are not
only well within his power to control, but can actually be predetermined and budgetized.
Since he exercises, therefore, an almost complete control
oyer "costs," but can neither control nor foresee the "price-'
he will receive, it necessarily follows that the cotton inrmer's
probl~ms are problems of COSrI', and not of PRICE.
In summing up the situation I h(}pe that I may, without
preSUIll)ltion, point out to Qur member banks that a \'~ry
definite ollportunity and obligati(}}l c(}}lfronts them in the
form of their privilege to exercise a reasonable de~reej of
banlc sU£lcnisioll over the expenditure of funds loaned ·for
agricultural llurposes. That such supervision can s('nb a
most Ilt:ipful and timely purpose in ~ringing the\ agriclllt~ral
iudllstry in this secti(}n to a permanently profitable bltsil'l has
become more cll.'arly apparent than ever before in the li~ht
of the coudition!; under which the farmers are now operating,
and which may be summarized as follows:
C)'Oll production costs C(}nstitute the one definitely determinable and controllable factor of crop
profits; are inseparably related t(} the yield per acre;
and in the final analysis depend up(}n the producer's
methods of operation and methoos of living, which in
tum are largely right or wrong according to the influence exerted upon them by the banker to whom he
looks for credit assistance and intelligent counsel.
In presenting these thoughts to our member banks at
this 'particulur time, the beginning of a new crop-growing season, we have in mind the fact that i( production costs are held
to a minimum from the very beginning (}f the season
such a program would prove far more effective for insuring
profitable production than to permit costs to take care of
themselves, and, then, after they were incurred, to seek recourse to some arbitrary price-fixing plan in conflict with
economic laws in the hope of recovering both cost and de!"ired profits upou their prooucts.
While cotton is the only commodity referred to in this
discussion (on account of its paramount position in our pro'
ductive industries), the same principles here enunicated
would constitute the only satisfactory basis for the pr(}fitabl e
producL,ion of any other commodity.
@FedFRASER