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~""III"'IIIIII"II'IIIII'I'I"I'JI'II"I'I"'I'II" 11111111111,1111"'1111111 •• 1"11,1,.,.,1"',1111111111,1,11111111111111 1 1"'1,1'111'11111111, •• ,,11111111111111111'11111"'111,1'11111"11:1' 11,1.1.", •• '1"111.11.,111.1"'1, •••••• ",1 •• "' 1 ... 11',,.,' : :!'IIIIIIIIIIIIIIII.,IIIIItIIIIIlIIII.,11111J111I1I1111111111111111'1111111111111111111111111111111111111111111111111111111""111'1'1111111111111111111111111111111111""111111111111111111111111111111111111111111111111111111111111111111111111111.": :: MONTHL Y BUSINESS REVIEW OF THE FEDERAL RESERVE BANI( OF DALLAS § ~ g : E E CHAS. C. HALL-W. J. EVANS, LYNN P. TALLEY, Chairman and Federal Reserve Agent § Assistant Fedoral Reserve Agents (Compiled March 15, 1925) ~ : § ~ E i7 ,11111.1.,IIIIIIIIIIII"'III III .,IIIIIII.,ll lllflll., 1IIIIIIIIIIIII I IIII I IIIIII I II"llllllllllllllllIllllllllI1 I IIIIIIIIIII'IIIIUI,IIIII.IIIII""IIIIIIIII.I.,I1III1I1I1.,1I1I111I1111111.,IIIIIIIIIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIII.,UII"'.,IIIIE 1111111111111111'"11111111111111111111111111111111""1111111111111111111111111"1111111111111111111111111111111111.11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111\ 'l'his COpy released for publication in morning papers Volume 10, No.2 Mar. 28 DISTRICT SUMMARY 0'1111111111111111111111111111111111'111111111 111 11111111 11 111111 1 111,1 1 , 1 ,111, 1 ,.,.,1,11111111111111.1".1.,,1,1111111111111111UIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII"IIIIIIIIIIIIIIIII.,IIIIIIIII111.,11111111111111111111111111,11111111111111111111111119 THE SITUATION AT A GLANCE E leventh Federa l Reserve District Febr;'ary January i~~~ri*f~~~;Fb~;~;l;:~i;~~~a~~:;~;it~~:: ~~~~~::~ : ~ ~: : : .: :.: .: .:.:.:.: : : : : : : : : :~.~: :~ : : : : : : : .:~~: · :~:'~:~:~~~~i% $:7~:~::;7~;% § .. .. Building permit valuations at larger cente rs ........................... .. ........................_............................................. Commercial fai lures (number) ...................................................... .................................................. ........................ Commercial failures (liabilities )........................................................................................................................... Oil production (ba!l·els) ;............................................ _................:..................................................................... .... Lumber orders at pme m Ills (per cent of normal productIOn).................................................................... :: (!J '111,1"11111111."'1.,""1"1"11,'1"" $ 6,968,818 79 $ 1,670,801 12,808,811 88% $ 6,958,217 78 $ 1,812,886 15,775,968 86 % Inc. or Dec. !;: Inc. Inc. Inc. Dec. Dec. 6.8 :U~ .2% 1.8 % 27.8% 18.8% S points " ,,,1111"1"1,11""'11,1'1,.,11,1,.1','.1,11"1.111111,111111111111111 1 1,,11111".,1111,,1,1"',111'1111111"',.,,11'1111'111111""1, •• 11111111",1,11.,1111111111"11,.,1,11.,IIIIIIII.III ••• ".,.,'llnll[!] The outstanding feature of the banking situation during the past month was the increase of $26,000,000 in the de· posits of member banks at a period when substantial wi th· drawals are usually made. While there has been some in· crease in the demand for credit accommodations, the de· mand has been lighter than usual and commercial banks have been amply able to take care of their customers out of their own resources as is shown by the small borrowings at the Federal Reserve Bank. A further evidence of the large cash reserves of commercial banks was their heavy over· subscription to the March 15th issues of the Treasury De· partment. The continued drouth in the Eleventh District is affect· ing adversely the agricultural and livestock in dustries, is curtailing the distribution of merchandise in rural sections, and is causing serious concern in many quarters relative to final outcome of the drouth situation. The winter wheat and oats made poor progress during the month and the dry weather is gradually reducing the stand. While the plant. ing of corn and cotton has commenced in many sections, planting operations generally are now being held up await· ing sufficient rain to germinate the seed. The dry weather has caused a further deLerioration in the livestock ranges and in many places there is a shortage of stock water. The grass is short and much feeding is neccssary to carryover the livestock. Consumers in the rural sections and in turn the retailers generally are limiting purchases to actual needs until the outcome of the drouth situation can be, to some extent, de· termined. This curtailment in buying is being reflected in wholesale distribution. The February sales in most lines not only showed a more than seasonal decline from the previous month, but a decrease as compared to the cor· responding month last year. Furthermore, reports indicate that March sales are proving even more unsatisfactory. On the other hand, the consumer demand in the larger cities continues active. The February sales of department stores reflected a smaller seasonal decline than usual and were 9 per cent larger than in February a year ago. The volume of public spending as measured by charges to depositors' accounts at banks in the principal cities was 17 per cent greater than in February last year. The past month witnessed a further increase in the business mortality rate, both the number of insolvencies and the amount of indebtedness being larger than in either the previous month or the corresponding month of 1924. The valuation of building permits issued at the principal cities was practically the same as in January, and was slightl y above the February, 1924" total. There was a sub· stantial increase in the production and shipments of cement, but the production and shipments of lumber declined. Re· ports indicate that the drouth is retarding building operations in rural sections and thereby curtailing the demand for lumber. CROP CONDITIONS Scattered sections of the district have been favored with call y completed and corn planting has become general in rains during the past monLh, but the district as a whole many portions of the district. Cotton planting has begun remains dry. The fa·ir, dry weather has enabled farmers in the Rio Grande Valley and other portions of South Texas, to make good progress with farm work, but in many sec- and is gradually extending farther north. However, there tions the ground is too hard for efficient plowing. There is not enough surface moisture to last very long and unless are only a few portions which have sufficient surface moi s- there is rain within a short time much replanting will be ture for planting and subsoil conditions are very unsatis- necessary. Peach and plum trees are in bloom and other fruit trees are budding. factory. The winter grains in Texas made poor progress during The sowing of spring oats and barley hafl been praqi. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS the month and are suffering from the effects of the drouth. Many sections of the state report that the dry weather has further reduced the stand and that rain is badly needed in most localities to stimulate their growth. Reports from southeastern Oklahoma indicate that while winter wheat has come through the winter in fairly good condition, more moisture is needed at the present time. The Department of Agriculture estimated that on March 1st there were 1,550,000 bushels of wheat, or 6 per cent of the 1924, crop, remaining on the farms in Texas as compared to 7 per cent on the same date last year. The March 1st stock of oats on Texas farms was estimated at 10,756,000 bushels, as against 10,521,000 bushels on that date a year ago. The present stock of corn was estimated at 20,332,000 bushels as against 26,825,000 bushels last year and 4.0,103,000 bushels two years ago. LIVESTOCK The drouth remains unbroken in most of the district's range territory. The precipitation in Southeastern Arizona has been beneficial to the ranges and has replenished the supp ly of stock water, but drouthy conditions still prevail in New Mexico and Texas. Although some rain has fallen in the latter states, it has covered only scattered areas and has been light in most places. In fact there has not been sufficient rain to relieve the dry range conditions. The effect of the drouth has caused a further deterioration in the ranges and has created a shortage of stock water in many places. In favored sections weeds and grass have started, but over the ranges as a whole very little grass is available and feeding has been necessary. This condition is aggravated by the lack of grain pastures which usually furnis h considerable grazing. The Texas cattle ranges on March 1st averaged only 69 per cent of normal as compared to 91 per cent on that date a year ago. This condition represents a decline of one point during February as compared to an increase of two points last year. In East Texas and in the Coastal section there was a substantial improvement in the ranges but in other sections there were moderate to heavy declines. The condition of cattle averaged 75 per cent of normal as compared to 90 per cent a year ago. The sheep ranges declined 3 points during the month and on March 1st were 30 points below the condition figure on that dute last year. The condition of sheep declined four .points during lhe monlh. Receipts of all classes of livestock at the Fort Worth market during February were substantially less than in January, but, with the excep tion of hogs, were grea ter than in the corresponding month last year. Movements and Prices. The outstanding feature of the market was the decided advance on hogs, the February top price being $12.40. During the first week in March the upward swing in the market continued and carried values to $l4,.4,0 at the high point, but later showed a reaction. This was the highest point reached since October, 1920. There was a sharp downward revision on lambs and sheep, the decline on lambs being $1.00, and a decline of 50 to 75 cents on sheep. The cattle m~rk~~ was generally steady during February. rn llllllllllllllllllllll lllll llllllllllllllllllllllllllllllill'111I1111 1 111111.tUII IIIII1I1I IIIIIIIII1II11111111 1011l111!I!) § FORT WORTH LIVESTOCK RECEIPTS February Feuruary Loss or Janua ry 1926 1924 Gain 1926 § Cattle ..........................69.364 44.691 . G 14.668 ,76.680 : Calves ......................... 10.810 9.622 G 1.188 16.065 E H ogs ........... , ........ ....... .40.658 43.444 L 2.886 50.941 : Sheep ............................18.029 9.200 G 8.829 30.461 :: .E Loss or Gain L 16.176 L 4.245 L 10.388 L 12.422 E . § : E :: [::J 'IIIIIIIIIIII ••• I • • • IIIII •• II ••• I ••••• I"'IIIII ••••• • 111111111111111111111111111111111111111111111111111111111IIIIIIIIII!) fii1 111 111 1111111111111111111111111111t1JIIIIII III I I IIIIIIItII 1 11111111111111111111111111,.1.,111111111111111111111 11 1111 11 ~ .~m :~~PARAT~::~I ::;~~,:c:.;~;?: J·t"~~.. E:::I :§::I . ., Stocker steers .................................... Butcher cows ...................................... Stocker cows ....................... ,.............. • 7.75 5.60 8.50 Il?~~:.: :~: : : : . :.:::::;:::::::::::::::::::::::::::j 8 (!] 6.26 6.75 3.75 7.25 5.50 3.75 • JU ~n~ tUfl 111111111111111011111111111101111(11111111111111111111111"11111111111111111111111111111111111111111111111111111111118 While the February exports of cotton from all United States ports showed a substantial decline from the heavy exports of the three previous months, they were 91 per cent greater than in the corresponding month of 1924. Total exports during the present season have exceeded those of the previous season by 43 per cent. Receipts and stocks of cotton at Houston and Galveston con tinued considerably above a year ago. Cotton Movements'. 0111111111111111111111111111111111111111111111111111111111111111111111111111111111'11111111111111111111111111111111111118 :: COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON :: E February February AuI';. 1s t to F eu. 28th E 1925 1924 This Las t § Season Season : :: Net receipts.................. 249.161 125.41 2 8.305.885 2.621 .258:: :: Exports ........................ 382.198 157.680 2.928.454 2.428.900 :: :: Stocks. Feb. 28th........ .,.................... ...................... 468.108 281.044 :: I §: [!l It 11111111111111111111111111111111111111111111111111 111111111111111 1l1I11I III 1 1111111111 1111 11111 1111111111111111111111 (!) !!lIIIIlIlIlIIIIIIIIIIIIIIIIlIIIIIIIIIIlIIIIIlIIIIIIII'1I1I11111III1111111111111111111111111111 1 11 1111111111111111111111U3 ~:; ~;~~B~;~~;~:::~:~=:C:S~~;:~d:~:: F'l;,;;:: For other foreign ports........................................ For coas twise ports ........................................... ,.. In compresses and depots...................................... 45.500 10.000 3G8,410 9.508 6.500 212.686 Total .................................................................... 468.108 281.044 I:. § § I!}IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII" 11111111 1111 11'1111 11111111111111111111111111111111111111111 fllIlI [!] rnllllllllllllllllll'IIIIIIIIIIIIIIIIII'llllllllllll'll1111111111'111111111111111111"1111111'111111111111111III.IIII.III[!J HOUSTON COTTON MOVEMENTS Feurll ary FebruR'.y Aug . 1st to Feb. 28th 1925 1924 'l'his Last Season Season § Receipts-Gross .......... 333.03b 130.058 4.405.703 8.286 .280 § :: Receipts- N et ............ 172,921 54 .34 1 2.4GB.8Ra 1.740.386:: :: Exports ........................ 1GO.298 61 .0191 1.459.41 6 958.203 :; ,§, Stocl,s. Feu. 28th .......... ...,................ ..................... 543.739 282.571 :; §:::.: :::::§. ~ .IIIIIIIIIIIIII'lllllllllIllllIllllfllllllllllllllflllllll IIlIllllllll"I'I.IIIIIIIIIIIIIIIIIII.II,'II I IIII, ••• I,CIIIII (€) !:::.i "~:~~~~~~~'~~,~~:~~~:~~;':i~;i!l:;;;~~:qfi:~.~"'l: ':. Illxports: Great Britain .......................... France ........................................ Continent .................................. § Japan-China ............................ :: Mexico ........................................ :: Total foreign ports.................. : Stocks at aIJ U. S. ports, Feb. 28th.... e,.. rn :: :: § 2.521.433 700.1 57 18.082 6.062.696 1.285,025 1.782.091 452,699 5.632 4.241 .01 2 764.7H § :: :; : IIII1IIIIII1II1I1IIIIIIII.,IIIIIIIIII.1111111I11111111111I1.,111111111111111(11111111111111111 1 1 1111 111.111 1 11111 111 8 II U 1111111" 111.111111 tt 111111111 11111111111111111111 11 1111111111111111111111111111111111111111111111111111111111111 SPOT COTTON PRICES (Middling ba s is ) Februn r y. 1925 ~ New York ........................................ Hig~1.85 Lo~1.2r, J. Galves ton .......................................... 25 .80 21.10 I ~~~!'::.l.~:~:~~:::: : : : :: : : :: : : ::::: :: : : ~i:~~ ~U~ I'[!) :: :; Ma rch 14. § 102~5.00 ~ ~U~ 26.25 i :: I!A'IIIIIII'III'II'III"'IIIII'IIIIIIIIIIIIIIIIIIIIIIIII1111.111.111111111111.111111111'111,111,1111,.111111,11I'IIIIIIIIm 3 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS .: a ffi::::::: 111111 11111111 1 111 1111111 1 1111111 1 1111111 1 11 1111 ' •• 1. 1 ' ll ll llll tlll lll lll l'I I' I " I I I' I III I I I I I~~~I~:"~~t~~~;~I '~~I '~I~II;:~~I I IIIIIII III' l ll l l l lll l l l ltll lll l ll l 1111 111 1 11 111 1 1 1 1 11 1 11111 111 1, .1 11 11 111111 11 1 111 1 11 1 1a!l COrl' rON GROWING S'11A'l'ES February, February, 1926 872,624 1924 349,902 • Cotton consumed ..................................•.................................... : Cotton on hand at end of month: . (a) in consuming establishments...................................... .. ................ .. ............ .... : : (b) in public storage and compresses.......................... .... .. ................ .................. UNITED STATES Aug. 1st to Feb. 28th February, S~!:~n S~:,s;n 2,403,980 2,422, 244 914 ,801 2,761,915 946,245 2,205,587 1926 550,132 , ................ ................ February, 1924 508,677 ................ ................ Aug. 1st to Feb. 28th S;:ai~n S~;n 3,489,487 8,606,044 1,546,210 8,075,140 1,688,439 2,497,076. I:ju1111111111111111 1I 1 1111111111f1l1l1l1l1l1l1l1l 1l1l 1l 1l1l II II II II If II 11111111 11 111111 11 1111 1111 1111 11 11111 11 11 1111 111111111 1"11111 II 11 11 1111111111111111 11 11111111 11 11111111 1111 11 11 II I1HII II II " " II 1111111111 11 11 11111 1111 11 11 1111111 " 11 11 11 11 1 11 111 0 WHOLESALE TRADE The slackening in the demand for merchandise at wholesale was a significant feature of the trade situation during the past month. Following the active distribution during December, January and the early part of February, a reaction set in in most lines and there has been a steadily declining demand. The February sales in most of the reo porting lines of trade not only evidenced a decline which was more Lhan seasonal as compared to the previous month, but there was a smaller distribution than in the same month a year ago. Business during the first half of March was (!] I!l gener.ally disappointing. The decline is attributed largely :: COTTONSEED PRODUCTS SHIPPED AND AVERAGE PRICE to ,the widespread drouth, which is reaching serious pro· portions in most sections of the district. The unfavorable RECEIVED product:ebrl1a:v. Price crop outlook has curtailed consumer buying, which in turn Shipped F.O.B. Mil l has limited buying at wholesale. Despite the slow moveCr ude oil ................................................. 21,829,H3lbs. $ .0906 per lb. ment of merchandise at the present time, dealers generally Cake and meaL...................................... 86,189 tons 37.25 pcr ton E Hull. ......................................................... 34,451 tons 9.22 per ton feel that if there is sufficient rain within a short time to .;, Linwrs ......................................... 4.......... 10,835 ,575 lb.. .0400 per lb. allow the farmers to proceed with planting operations under : COTTONSEED RECEIVED AT 'l'HE MILLS @ favorab le conditions the spring business will be satisfactory. Retailers are operating cautiously. As a rule they bought § l i'ebrual'Y Jnnuul'Y § :: Cottonseed received at l'eporting mills (tons) ........ 27,639 59 ,481: liberally early in the year but are now awaiting the outcome :: Average price per ton p .dd for seed (including : .;, freight) ...................................................................... $38.53 $40.65 : of the drouth before making further purchases other than those to cover current requirements. While retailers' stocks 0 are generally well assorted, they are below normal in most instances and in case Lhere is a revival in consumer demand, STmSnCS OF I:: it will be immediately reflected in wholesale channels. The February distribution of dry goods reflected a seaCottonseed received sonal gain of 24,.4, per cent as compared to the. previous at mills (tons) ... 4..... 1,507,000 1,292,000 4,83 6,000 8,124,000 : : § Cottonseed crushed § month but was 7.5 per cent below the corresponding month 1,294 ,000 1,096,000 8,761,092 2,713,305 of 1924" Retailers are making their purchases mostly as 559,626 386,018 220,000 204,000 the demand arises, and are placing but few orders for for(pounds) .................. 875,485,000 306,897,6561,129,162,513 808,600,65'1 ward delivery. Dealers state that the dry weather is curCake and meal pro· duced (tons) .............. 602,000 510,635 1,716,842 1,259,884 tailing consumer buying and this is being reflected in reHulls produced (tons) 874,000 321,098 1,078,000 778,413 duced purchases at wholesale. Prices are firm with an L inters produced (600-lb . bales) .......... 244,000 218,046 732,000 665,972 upward trend. Stocks on hnnd end of Feb.: There was a decline of 13.4, per cent in the February Cr ude Oil (pounds).... 82,080,000 34,219,886 96,922,000 107,227,013 sales of drug firms as compared to Lhe previous month, but ~ Cake and meal (tons) 44,000 52,082 210,571 218,989 : H ulls (tons ) .................. 60,000 61 ,478 193,000 138,360 an increase of 2.0 per cent over the same month last year. :; Linters (500-lb. bales) 46,000 64,787 166,991 173,533 Retailers are showing a disposition to avoid forward commitments and are making purchases to cover current needs TEXTILE MILLING only. Stocks in the hands of the retailers are as a general Gradual improvement in the textile industry continued rule lighter than usual but are well assorted. Reports in· during the past month, but buying is still being confined to dicate that consumers are limiting purchases largely to nearby deliveries. However, the volume of such buying is actual necessities, thereby reducing distribution. Dealers steadily increasing. Orders on hand at the end of the state that the dry wea~her is beginning to affect business, month were substantially larger than those on hand a year Prices remained steady with an upward tendency. The February sales of reporting farm implement firms ago. Due to the short month the February production declined 8.9 per cent from January but was 7.7 per cent reflected a marked decline, being 38.6 per cent less than in January, and 23.5 per cent less than a year ago. The dl'outh greater than in the corresponding month last year. ~'IIIIIIIIIIIIIIIIIIIIIIII I IIIIIII I I I IIIIIIIIII It II I I'I I "I I " '1 1 I I I II III II I IIIIII I III I III II IJI, ' IIIIIII I I I I I III IIII II. Gl which is retarding planting operations has greatly reduced E TEXTILE MTLLING STATISTICS E Lhe demand for implements. Bookings for forward delivery § Februm'y February January E have been generally light and some orders placed last fall E 1926 192<1 1926 § for spring delivery have been cancelled. The outlook for E Nu mber bales cotton consumed...... 2,887 ' 2,367 2,626 ~ :; Number spind les nctive.................... 79,872 79,872 79,872 : the spring. is ~ependent upon the developments in the agri: N umber poun ds cloth produced.. .... 1,165,579 1,082,662 1,278,924: cultural sItuatron. Dealers are of the opinion that there [EJ COTTONSEED PRODUCTS Shipments of cottonseed producLs from the Eleventh Dis· trict's mills were on a smaller scale during February than during the previous month. The average price rece ived for the February shipments of crude oil of 76 mills was $0.0906 per pound, as compared to $0.0916 in January. The price on hulls, cake, and meal showed a further gain . Hulls were sold at an average price of $9.22 per ton in February as against $9.15 per ton in January. Cake and meal brought $37.25 in February as compared to $36.07 in the previous month. 1111 .11 111111 1 11111111111 1 111 11 11,1 111 111 1 1 tit 111 1 111 1111 111111 111 111 1 11111 1 1 11 111 1 1111 11 111 1 111 1 11 1111 11 11 11111 11 11 11 :: ::: 1 l!JII IIIIIIIUllllllllllllllllllllll llll lllll lll fl l lllfll ll lllllllllllt lllllf lllllllllllllllll l ll ll ll1 1I 1I 1I 1f 1l 11l1l 1l1l 1£!) m l l lllllllllllllllllll l l l lllll l l l l lllll l l lllll llll llll l l i ll1 111 11 11 11 111 " '1 1 11"111 1 11 111 111 1 111 11'1 ' 111 11' 1"'1I 1 111 1 I ':"'1 1111111111111111111111111111111 11 111111 11 1111 111111 1111 1111"1111111"'" 11 11 11 111111 111 11 11111111""I II IIIIIIIII III@ 1 1111111111111 11 11 11111111111111 11 111111111111 11 111111 111 111 1 1111111 1 11 11 III I I I I I III II II I III It I IIl I II I IIII IIIII" ' II II&!l 1: :. CO::b;~;·~;;::TT::~l~~:~~i~:: . GII IIIIIIIIIII ... 11111I111I1111111111111111 1 111111111111111111111111111111111111I11 1I 1I1I 1 111"" fl IIIIIIIIIIIIIIIIIIIII ID 111111111111111111111111111111111111111111111111111111111111111111111111.11111.111 .. 11111111111111111111111111111111111 0 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 4 ----------------------- will be a revival of trade if sufficient rain comes in time for planting operations to be carried on under favorable conditions, as the farmers are financially able to make the needed purchases. However, they are delaying buying to see what weather conditions will do. There was a decline of 4.8 per cent in the February sales of reporting grocery firms as compar~d to the previous month, but a slight gain as compared to February, 1924.. Reports indicate that there was a further slackening during the early part of March, but the decline has not been so marked as in some other lines of trade. Dealers state that there has been a tendency for retailers to increase their stocks since the first of the year and that at the present time stocks are normal in some sections and above normal in others. This is accounted for by the fact that there seems to be a shortage of some items and that prices are showing a tendency to work to higher levels. While the sales of hardware during February were sliahtly above the previous month and 10.9 per cent greater than a year ago, reports indicate that there has been a curtailment in demand since the first of March due to the drouth. Retailers are confini~g purchases largely to immeoiate needs. While dealers are still generally optimistic reD'arding the spring business, they state that it will be deter~ined by the outcome of the drouth situation. Prices since the first of the year have shown an upward tendency. r-1 l!J1111 11 11 1111111 11 11 11 1 1111 111111111 111111 1111 111 1111 111 1 1111 111 1 11 111 " 11 11111 111 1 11 11 1 1 .. 1 .. 11 11 1 11111 1 111 11 I :: BUSINESS I FFebb. 11 925, comparedd w.ith Feb. 1924............................................................. e . 92of compare WIth Jan. 1926.................... 5, sales Percentage to average stocks in ... ............ .......................... E ~:~~~:ry. m~ § Percentage ~f sales . .... . . . . . .. . . .. ... . . ....... .··......... . . . .·....·....····. ....·····.. ......... . .. ......................... . .... . . . . . . . i~ ~~·~·~~~~ · ~ t;;~k~·.:.::. I Rat!~:Ei !~U~E~t~tl:r~f::: I:; ~:i::;~~;~;~::~~:;.:~~:;~:~::::::::::::::::::::::: :::::~:: : :: :: RatIO of F eb. collections to accounts r eceivable due and outs ta nding Feb. 1. 1926 ..............................................................:....-. .................................... m 1' .,1 11, ••• ,1 11 1,.,1 1,., • • "11, •• •• : : :: : § :: :_: E t [!J 11I1 11I1I1I 111 .. 1I1 1 1' 111'1111 1 11111 I U 1111111 111111111 1111 1111 1111111111 1 1111 11 11 11 111 ' 111 '1 11111 111111 CC111111111 11 1 8 RETAIL TRADE Department store trade reflected a further improvement during February. The decrease of 4,.1 per cent in the sales of twenty-four firms was less than the usual February decline, and there was a gain of 9.3 per cent in sales as compared to the corresponding month last year. Merchants generally have had good success in clearing out their stocks of winter merchandise, and the fair weather has stimulated the buying of spring merchandise. Stocks on hand at the close of February were 1004, per cent greater than those at the end of January, but 4,.2 per cent less than a year ago. The percentage of sales to average stocks was 21.2 in February as compared to 18.5 last February, indicating that the merchants are obtaining a better turnover. The ratio of February collections to accounts receivable on February 1st was 4,0.5 per cent as compared to 42.6 per cent in January and 38.5 per cent in February last year • Dallas + 8.0 - 1.6 + 7.6 + 65 No~e + 7 .8 Ft. Worth Houston +10.4 - 4.4 + 7.4 +11 .8 - 8.8 + 9.9 _ 2.7 +10.6 _ 1.6 +10.9 - 10.5 + 5.4 - 4.0 + 12.4 -+10.4 4.2 19.1 21.1 16.0 17.9 20.3 24.7 18.4 21.2 18.6 21.2 ~~:~ 1k~ ~~:g ~~:~ 11.6 39 2 t ~U 10.3 86 9 8.0 40 9 All Others 9.'14 13 + 8.4 +11.4 -15.1 +11.0 Total District 9.3 - 4.1 7.8 +10.7 13 4 . 7.2 +18.9 +2 5.1 +10.7 2:. 7.8 43 S + + +10.2 - 8.8 9.2 + 10.0 40 5 ,1,., 1, . " . ,11 1 1 11 11,., 11 1 ,.1 1 1 1 11 " ' 1" ' 1 ""1 1 111 "1 1 11 1 11 1 1 1, . ,1" ""111., I I .,'f., I I I I III I II I . , IIII I III I.:., III I II I II.,. , 1 1 1 11 11 11 1~' I I I III I II II I"III I "I";'llllllll ll fl lllll l l ""'·""1"1 1 111 11111 1111 11" ;" ' 0 FINANCIAL The volume of checks charged to deposi"tors' accounts at. banks. located in the fifteen principal cities of this distrIct dUrIng February reflected a seasonal decline of 13.2 per cent from January but was 16.9 per cent greater than in the same month last year. 1!l '11. , II . , ., I '.' •••• " " . , • ••• ••• ", . " . " ,., •• , •••••• """ ' 11 1111 1 11'1 1" "" 1 111 1 11 11 1 1"'1111 1 11111 11"111 "11 1 111 1i1!] Februa ry February [nco or January lnc. or 1924 1926 1926 Dec. Dec. $ 8,396.000 $ 9,618,000 - 11.8 $ 11,016,000 - 28.8 26,861.000 18,962,000 +14.8 - 16. 8 21,767,000 18,912,000 - 6.6 16.913,000 + 11.1 17,686,000 11,441,000 - 10.8 7,942.000 +29.2 10,266.000 203, 672,000 168,471,000 +20.9 286,899,000 - 14.0 86,127,000 - 10.3 88,107,000 - 4.8 81,514,000 91,940,000 - 22.9 63.746.000 +11.2 70.890.000 68,018,000 - 18.4 37,731,000 +25.4 47,821,000 144,491.000 114,001,000 +26.7 161,414.000 - 4.6 2.994,000 - 3.6 2,868,000 2,888,000 + 1.0 40,628,000 - 9.4 80,684,000 +19.6 36.707,000 42,171,000 - 11.6 37,321,000 35,789,000 + 4.8 10,904,000 - 16.3 9,231,000 7,984.000 +16.6 9,266,000 - 12.4 8,107,000 7,941,000 + 2.1 25,474,000 - 22.3 19,797.000 18,409,000 + 7.5 A IbuQuerQue A ustin B eaumont ....... C orsicana ....... D alIas E I Pas~"':::::::: ::: F ort Worth ... Galveeton ....... H ouston Roswell ............ S an Antonio ... S hreveport .... § Texarkana :: Tu cson _........... aco ............... 'rotal, 11th District.... _ $670,061,000 $678,066,000 !W E § II :: Total sales :: Feb. 1926. compared with Feb. 1924................... Feb. 1926, compared with J a n. 1925... ................ ::::::::::::::::·::::.................... .. :: C d-"!"tan. lIst to date comparcd with Same period last yea~ .... :::::::~::::::::::::: : re I sa esE ~ebb. i~~~' compared with Feb. 1924........................................... ................. : • e .. , compared with Jan. 1926........ .......... :: Jan. 1st to date compared with same pcriod i·~·~·t· ·~~~~· .. ·.. ····.. ··: .. ·.. ····.. :: Stocks........... -............. :::: :: :: OF I IDli;;;:R;;MENIri!l l s~IORI~S IIIl I IIII IIIIII I II I I I II II I IIII 111111 1 11111 1 1111 1 111 1 1111 1 1111111 1 11111 1 1111 11111 1 1 1 11111111m § § [!) DONDITION OF WHOLESALE TRADE DURING FEBRUARY, 1925 :: Per centage of Increase or Decrease in :: N et Sales Net Sales Stoeb E Feb. 1925 Jun. 1 to d'.'tp F eb. 1926 § compared with compared ~Ith compared with :: same period : Feb. Jan . las b yea r Feb. Jan. : :: 1924 1925 1924 1925 Groceries ...................... + .3 - 4.8 + 3.9 + 8.8 3.7 § Dry goods...................... - 7.5 +24 .4 - 17.8 - 19.2 1.7:: Farm implemen ts........ -+ 1203.'95 -+88.' 36 - 7.6 - 7A .7 § _ Hardware .................... + 7. 8 - 2.G + 1.3 Drugs ............................ + 2.0 - 1.1.4 + 4.0 + 6.2 + G.8 ~ ~'lIl l llllll l ll ll llltlllllllllltlt l t"lllIlItllllllltllllllll 111111111 1 111111111111111111111111111111111111 1 1 1 111 1 111ti l "I +16 .9 $771,944,000 --- 18.2 e " I IIII IIII I " Ultltl lllll l l l l ltllll ll l llll lll ll lllll lllllll ll lllll lll1111 11 11111 1111111 111 111111 11 1111 11 11 111 11 111111 [ 1 There was a further sharp decline in the ~olume of acceptances executed by acceptmg banks of this district and which were outstanding on the last day of February. The acceptances of these banks ou~standing on February 28th totaled $2,653,993.75 as agamst $3,723,4.73.99 on January 31st. The amount of acceptances executed against import and export transactions declined from $2,259,359.50 on January 31st to $1,127,614.31 on the last day of February, while those based on the domestic shipment and storage of goods increased from $1,4.64,] 14,,4.9 on January 31st to $1,526,379044 on February 28th . Acceptance Market. During the four weeks' period ending March 4,th there was a further gain of $11,385,000 in net demand deposits of member banks in selected cities, and $2,004,,000 in lime deposits. Their loans during the same period increased $11,307,000, this increase being about equally divided between commercial loans and loans on corporate securities. Their bills payable and re- Condition of Member Banks in Selected Cities. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS discounts with the Federal Reserve Bank during February declined $34.9,000, while their reserve deposits increased $1,512,000. The ratio of loans to net demand deposits stood at 83 per cent on March 4,th as compared ~o 85 per 5 cent on February 4.th, and 91 per cent on March 5, 1924. It is interesting to note that on March 4, 1925, the deposits of these banks were $71,436,000 greater than on March 5th last year, and loans were $4.6,601,000 greater. ~11I1I111111'1111111111111'lllllllllllIlllllllllllllllllItI 11111111111111111111111111111111111111111111111111111111111'111111111 11 1111111111111111111""1111111111111111111111111111'11I11111111111I111111111111I111111111 1 'lllIllllIlIllftlllllll.III I III I@ CONDITION STATISTICS OF MEMBER BANKS IN SELEC'I'ED CITIES 1. 2. 8. 4. 5. 6. 7. 8. 9. 10. 11. : : : Mch. 4. 1925 49 $50,271.000 21.198,000 8.612.000 78.286,000 24 1.205 ,000 294.450,000 95.929,000 32,666.000 1,750.000 88 % Number of reporting banks............................................................................................................. U. S. secur ities owned......................... ...................................... •....................................................... 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 obligations............... All other loans .................................................................. ~.. ... .......... .. ......... .. ...... .. . ........ ...... .. ......... .. . Net demand deposits ......................................................................................... :......................... ..... Time deposits ................................................................................................ ~........... ..... . .. . .... .......... . .. Reserve with Federal Reserve Bank........................................................................... ................ .... Bills payable and rediscounts with Federal Rellerve Bank.................................................. ... Ratio of loans· to net demand deposits................................................... .................................. ·Loans include only items 4 and 6. Mch. 5. 1924 Feb. 4. 1925 49 $ 49.152,000 21. 277,000 3,710,000 67,884,000 235,652, 000 283,065. 000 93.925.000 81,154,000 2,099.000 85 % 5~ $55.792.000 14.077.000 3.168.000 61,199.000 207 ,090,000 230.952,000 87.991.000 25,598,000 4,487,000 91 % _ 61111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111III I IIIIII'"ItIIIIIIIIII' I I III IIIIIIIIUIIIIIIIIIIIIIII"1111111111111111111111.1111,1111111111,11111111.111111111.,1111.,11111111111111111,,1,.,1,11111.0 29, 1924. The number of savings depositors of these banks on February 28th was 225,606 as compared to 222,333 on January 31st, and 196,778 on the last day of February, 1924,. Savings Deposits The savings deposits of 104, reporting banks which operate a savings department reflected a gain of 2.4 per cent over those of January 31st, and 7.0 per cent over those of February ~""'IIIIIIII"IIIIIIIIIIIIIII"'"I1III1I1I1I1I1I1""1I1I1I1I1I1I1I1I1I1I1I1I1I11i 111111111111111111111111111111111111111111 11 11111111'"1111111111111111111111111111'111111111111111111111111111111111111111111111111111111111111111111111111' IIIIIIII~ : _~ S~;'~~:'~ Amount ~8~~~~ITSof Number February 29. 1924 of Amount of Inc. : Beaumont ...................................................................... _ : El Paso ..... .................................................................... _ : : : ~ Houston ................................................... ........ ............... San Antonio .................................................................... Shreveport .................................................................... Waco ............................................................................... Wichita Falls............................................................... All others..................................................................... ~ Total ................................................................. ....... § Dallas ............................................ ................... _.............. § Fort Wort h ......................................... .......... .................. § Ga lveston........................................................................... ~ : Number of Reporting Number of Banks: Savings Depositors 4· 4,719 6 48,688 8 16,018 8 12.878 8 18,494 12· 89.22 0 6 28.852 5 24.185 5 7.772 8 6.676 54· 88.664 104 225,606 m· Only 8 banks in Beaumont. 11 banI,s in Hous ton. and 51 banks in all 0 Savings Savinge Deposits Depositors 2.288.458 4.409 13.869,885 85.535 5,882.444 14,914 4.767.688 11,805 8,180,916 11.214 19.861.769 82,876 10.966,285 20,058 9.714.209 22.738 4.187.429 5.741 1.568.288 6.598 14.818.294 81.895 Savings Deposits 2.286.905 11.514,290 6.751.128 4,311.765 7.298.368 18.871,278 9,756,248 10.991. 010 2,920.540 1.647.664 18.871.620 January 31, 1925 or Number of lAmount of Inc. or Dec. Savings Savings Dec. Depositors Deposits + .1 4.778 2.879.6 27 - 8.8 : +20.5 48.214 18.585.102 + 2.1 § - 18.6 15.724 5,899.519 - 1.1 : + 10.6 12.868 4.566,571 + 4.4 § +11.5 13,274 7.918,550 + 2.7 E + 8.1 88.500 18,997,108 + 4.6 : + 12,4 28.089 10.885,897 + 1.2 : - 11.6 28.857 9.879,998 + 8.6 : +48.4 7.585 4,105,476 + 2.0 § - 4.7 6.608 1.536,815 + 2.0 : + 7.0 88.446 14.096.255 + 1.5 ~ ::::1_ 95.500.605 196.778 89.215.796 + 7.01 222.888 1 93.275.913 thers reported t he number of sllvin gs depositors. ~ + 2.4 : 1111111111111111111111111111 ... 1111.1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 .. 1111 ....... 111111111111 .... "" .. 111111,1,., .. 111111111111111111111 .. 11111.11111111111 .... ,111111".11,1,11118 lilllllllllllllllllllllllltl., ..... ,II .. IIIIIIIIIIIIU .. III.II .... IIIIIIIIIIIIII .... 111,11111111111, ... 1111111111111111111111"11 11 11111,1111111111111111111 .. ,",111111111111'"11IIUlillfllIlIlIlIlIlI.,IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII£!] MARCH DISCOUN'I' RATES Dallas Rate charged customers on prime commercial paper s uch as is n ow eligible for rediscount under t he Federal Reserve Act: (a) running 80·60-90 days .................................................. .. (b) running 4·6 months ....................................................... . R~~~e~~:bf,ed ~~~ ~.~~.~s ~ ~.~~~~ ~.~~I~.S: ~.~.~.~.~.~.~ ~:. ~.i.~~~ ... ... ... .. ... ... .... ... Rate on ordinary commercial loan s running SO·60-90 days secur ed by Liberty Bonds a nd certificates of indebted· ness (not inc luding loans to ena ble purchase O'f bonds) Rate on loans sccured by prime stock exchange or other current collateral _ (a) demnnd .......................................................................... .. Rate (b~nti~~m·':;;~di·t;·"·X;~~·~~:""~~~~;:~d""b~""~~~~h~~~~""~;;: § ~ . Ra~~ipo~· c'::tCtle.. i-;;;{~~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: m EI Paso P revai linll' Rates Ft. Worth 4-6 4-6 8 8 Houston San Antonio 4-6 4-6 5-6 5-6 Waco 1- - -- H-8 4,· 8 5-7 5-7 6-H _~: 4t-G 6.7 5-6 41-5 6 4!.6 8 5 ~ .6 5.6 4,. 8 6 6.6 5·7 8 8 6-8 6-8 5-6 5·6 6-8 6·8 6-7 6-7 4t~ ~ t~ ::~ t~ I . . . . . . . . . .:::::.:=;;;.............. i -_§::_ § § 6.:~a§ UUI ....... UIlIlIlIlI ............ UIlII .. UIIIII"IIIIIII'tlttllllllll111""111 1 1111111111'111.,11111,111111." .. ,11, ' 11 111111111.111111111111111 .... ,1 .. 11 .. 1111111111 .......... "1111111 ... 111111111".111111 .. 11111111111 .. ,.11111I11I1I11111.111 •• (!JUIiItI §I!'e : "-1c : Ap :M EJu : Ju : Au : Se i Oc : No ~ne : Ja - Fe mill" :::~~~~ ~~ 4: 0: 7: 8:: 4: 8: 4: 1: 6: 5 E J: 5: 1: : 11I.,IUIIIIIIIIIIIIIIII11 11III1111I11111I1111111111I11111I1I1I1111tlllllllllllllllllllllllllllllllllll.fll.lIl1ll(!) The total dep osits of member banks in this Deposits of Member Banlcs'. district which amounted to $84,7,323,000 on February 25th were not on ly $25,892,. 000 greater than those on January 28th and $95,6] 6,000 greater than those on F~bruary 27, 1924" but were $18,· 729,000 larger than those on December 24" 1924, which was the highest figure previously reported. During February demand deposits gained $19,581,000 and time deposits increased $6,311,000. Operations of the Federal Res'erve Bank. The limited demand on the part of memo ber banks for rediscount accommodations continued during February. Loans to member banks reached a new low point on February 10th at $1,889,000, but there has been a sli ght in- MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 6 crease since that time. While loans on February 28th were slightly less than those on January 31st, there has been an increase in the number of borrowing banks and a tendency for the demand for credit to shift from reserve city banks to country ban)cs. At the close of February 54 banks were owing to the Federal Reserve Bank as compared to 38 at the end of January. On February 29, 1924, there were 14.1 banks owing us $10,181.250. Due to a further reduction in our holdings of bankers' acceptances, total bills of all classes declined from $25,· 455,441.31 on January 31st to $17,803,381.97 on February 28th, distributed as follows : Member banks collateral notes (secured by U. S. Government obligations) ...................................................................................... $ 389,500.00 Rediscounts and all other loans to member ba nks................ ........ 2,259,593.80 Open market purchases (bankers ' acceptances) .............................. 15.204,288.67 Total bills held .............................................................................•.... $17.803,381.97 Federal reserve notes in actual circulation on February 28th totaled $4,6,274,135, which was $1,4,35,665 less than on January 31st, but was $1,4.73,975 greater thun on February 29, 1924. The reserve deposits of memb er banks totaled $66,154,077.86 or $1,281,516.98 greater than on January 31st. FAILURES Commercial failures in February reflected a further slight increase over the previous month and were substantially larger than a year ago. There were 79 insolvencies in February with an indebtedness of $1,670,801, as compared to 78 defaults in January with liabilities amounting to $1,312,836, and 57 failures in February, 1924., which owed $1,280,54.8. PETROLEUM Production of crude oil in the Eleventh Federal Reserve District declined during February to 12,808,811 barrels from the high mark of 15,775,968 barrels produced in January. That the decline was not entirely due to the twentyeight day month is shown by the fact that the daily average production during February amounted to only 457,457 barrels, as against a daily average of 508,902 barrels during January, a decrease of 51,445 barrels. Although there were 574 new wells completed during February as compared to 530 in January, only 370 were successful and netted a flush production of 97,602 barrels of crude oil, as compared to 366 successful wells in January from which a flush production of 376,845 barrels of oil was obtained. The major portion of the decrease in oil production in this district during February was caused by the slump at the Wortham field. While more wells were brought in during February in this field than in January, the slump in production was enormous. Louisiana daily average production increased slightly. Crude Oil Prices. The crude oil markets in this district are firm and premium p ayments are being continued in order to guard crude supplies. During the period February 13th to March 12th, the price on North Texas oil increased 35 cents per barrel ; Texas Coastal rose 25 cents; Corsicana light, Mexia, and Currie advanced 20 cents, while Corsicana heavy remained stationary. There was an increase of 25 cents per barrel in the posted prices of all Louisiana oils. 8.111111111111 111 1 11 • • , 11 111 111 11 11,.111111 1111 " ' 11 11 111111 1111111 1 111 111111 11 11111 ' 11 '111 11 11 11 1 " 111 1 1" 11"'1 1 111111 1 111 11 11 11 111"11"" ' 1,1111 1 111111"'11111 1 11111111111111111111111 1 111111"1 " 11 '1111"'111 11 11.11111111111111111111 1 1111 111 • •• 1. 1 18 !§. ~I~?ST;;;;;;::: T:~~~~1!~~:O~ii~'2;N lI~iii~;;' A:m~ iE T:11rui"~;:~~;f:m : • • •••• • • • • • • • : Miscellaneous fields ......................................................... . --_--: Total, Texas ................................................................ North Louisiana ...~. . ............ .................. .. . ... ... .. . . ......... . .... 11,215.727 ~00,561 14,023.72~ 56,896 1,752,244 ~67,~57 § 452,878 Dec . 56,524 Dec. 2,8 07,997 169,160 Dec. In c. 51,817 872 §!---_.:_ ~ Total, 11th District.................................................... 12,808.811 15,775,968 508,902 Dec. 2,967,157 Dec. 51,H5 (!J 111111111111111111111111111111111111111111111 1111 111 11 1 II 1 II II tI 1 II It ti l II II till I (11111111 111111111111 11 11111 11 11 111111111 11 1... 11111 UII I 11111111 II II I 111111 111111111111111111111111111111111111111111111111111111 tlIIIUIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIII l!] ~_ • • IIt1I1III1 I I1II1I1I1I1II1I1IIII1I1 .. I II IIIIII.IIIIII.11111111 1 111 11 1 1IIII III I I J I I I IIIIIJ IIIIIIIIIIIIIII IIII IIIIIIIIII I~_' FEBRUARY DRILLING RESULTS : E : E : i::: Com· ProF ield pl etions ducers North Texas ..................................... 221 188 Central-West Texas ....................... 207 151 5 ...::::::::::::::::::::::::::::::::: 13 3 Miscellaneous f ields ....................... 11 Texas wildcats ............................... ~~~s T~~::t~~ 0~5. 8~0... -----Totals, 'I'exlUI ........................... 585 857 N orth Louisiana ... 39 23'" -----February totals, District...... 574 370 ~... ...... .. .. . ... ... .. . : : : :_ E January totals, District........... 'Gas wells. "Includes 1 gas well. : Fail· In itial E ures Production: 88 23,350 E 56 55,028 : 22 17 10,716 2,053 3,690 178 16 94,862 2,740 20~ 97,602 530 366 16~ 376,845 "'Includes 6 gas wells. 8"111111111111111111111 11 111111 1 1111 1 111111111111111 1 11 11 1 111 1 11 11 11 1 1' 1I I I IIIIII I IIIIII I I I IIIIIIIIIII III I I IIIIf l. tllI l[!) (!II 11I1I1II1I1I I1 U , , " 11I11I1I11I1I1I1I1I1 1I 1I1I1I 1 11111111111111111111 11 11 111111111 11 1 11 11 1111111 1111111111111 III II II II!l E : - CRUDE OIL PRICES Mch. 12, Texas1925 Corsicana light ................................................................... $2.00 Corsicana heavy .................................................................... 1.00 Texas Coastal ........................................................................ 2.00 Mexia ...................................................................................... 2.00 Currie ...................................................................................... 2.00 North Texas (42 gravity and above) .............................. 2.35 Mch. 12, Louisiana1925 Caddo (38 gravity and above) ............................................$2.05 Bun Bayou (38 gravity and above) .................... ............ 1.86 Homer (85 gravity and above) ........................................ 1.80 Haynesvi lle (33 gr. and above) ........................................ 1.70 De Soto Crude......................................................................... 1.90 [!J 111111 "'"11111111111111 1 111111 1 "11111111111111111111111""' 111 "'" Mch. 15, 1924 $2.00 1.00 1.65 2.00 2.25 Mch. 15, 1924 $1.85 1.80 1.85 1.75 1.85 § E _ r i ll' I"IIIIIIIIII IIIIIIIIIII I IIIIIIIIIIIIIIIII I[!) (Oil statistics compiled by The Oil W eekly, Houston , Texas.) LUMBER Activities at the pine mills of the Eleventh District during Februar y con tinued at about the same pace as in January, although production fell further below normal than usual. During February orders were received for 90,804,,968 feet of lumber, or 83 per cent of normal production as against orders for 86 per cent of normal production in January. However, unfilled orders on February 28th called for 55,211,619 feet of lumber as compared to orders for 49,152,288 feet on the books of the 48 reporting mills on January 31st. Production during February was 11 per c~nt below normal, as against only 8 per cent below normal in January, and shipments of lumber fr om the mills were 9 per cent below actual production as compared to shipmen ts only 8 per cent below production during Januar y. Stocks held at the mills continued to increase, being 24, per cen t below normal as against 26 per cent below normal at the close of January. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 8'11111111111111111111111111111111111111111111 1 11111111'1111111111111111111111111111 II IIIIIIIIItlllllllllllltllllllllll ll!] FEBRUARY PINE MILL STATIS'l.' ICS :: I ~:~;~?.:~~~~~~:i~~:::~ ':7~ : ~ : :~ :·~:~: .~·~.~.: : ~'~ . : :~ H:mjU ~m :: :: :: :: :: Unfilled orders. Feb. 28th ........................................ 66,211.619 Normal produc tion .................................................... 109.231.808 Stocks. Feb. 28th ........................................................ 248.449,986 Normal s tocks ................................. ........................... 327.864.614. Shi pments below production ...................................... 8.287,216 E Actual production below nOl'maL ......................... 12,897,878 :: Ol'ders below 'n ol'ma l production ............................ 18.426,836 ,§, Stocks below norma l... .......................................... ,.... 79,414.,678 :: feet feet feet reet feet= 9% feet= ll % feet=17 % feet = 24 % I ~U .. lllllllllllllllllllllllllllllllllllllllllllllllllllflllllllllllllllllllllllllllllllllllllllII II II II 11111111 II lilli_I!) I BUILDING The valuation of building permits issued at twelve of 7 the principal centers of the Eleventh Dish'ict during February amounted to $6,968,818, an increase of two-tenths of one per cen t over the January valuation of $6,958,217, and an increase of 2.0 per cent over the $6,835,269 valuation of permits issued during February, 1924_ During the period from January 1st to February 28th inI usive t lere were 5,259 permits issued at reporting centers h' l' f $13 92 d aVlng a va uatlon o · ,7, 35, as compare to 5,325 permits valued at $15,286,091 issued during the same period of 1924" a decrease in valuation of 8.9 per cent. 1 C ° oJ mllltl l lllllll l ll l llllll •••••• ' •• ' •• II'.'II.IIII •• III.111'1'11111111111111111111111,1111111111111111111111111111111"1'1" 111'11 11 111"11111 11 1111111111111111111111 1 1111111111111111 11 1111 1 11.1.1.1. 1.111111111111 11. 1. 1IIIIIIII'III"'IIIIIIII.I'I' I IIIII I[!J BmWlliG PMM<T' :: 2.4 :: :: :: :: :: EP : S §S 4.7 :: 8.7:: 2.6 :: 8.7:: 2.8 § 0.1 : 4.7 § :: 7.4:: E 9.6 E GJ T 8.9 :: IIIIUIIIIIIIIIIIIIIIIIIIIII"'IIIIIIIIIIIIIIII ' IIIIIIIIIIIIII1 1 1111111 1 11 111111111111111 1 111111111111 1 11.111111111 1 11 11 111111111 1 111111111'111'1 11 ,1 1 111 1 11 111 111 11111.,.1 111 1111 11 11111 11111 111111 1 11 111111 111111111111 11111 111111111.1111 111 IIIIIIIUIIII!) CEMENT There were 339,000 barrels of Portland cemen t produced ary increased 33.6 per cent over shipments in January, and at Texas mills during February, as compared to 304,,000 were 39.6 per cent greater than those made during the corbarrels produced in January, which represcnted an increase responding month last year. Due to the heavy shipments, of U.5 per cent, but was a decrease of 6.6 per cent as stocks held at the close of February were 9,5 per cent less compared to the February, 1924" production of 363,000 than stocks on hand at the close of January, and 14,.3 per barrels. Shipments of cement from the mills during Febru- cent less than those held at the end of February, 1924,. I I f3l'"1I1I1I1111111I1111111111I1I111 I I' 111111111111111111 11 1111111111111111 1 1111111 1 111111111 1 1I 1I 1 tit 11 1'1111111') 1 111 11111111111 1111111111111111111 1 11 11 1 t 11 11111 1 111 1 11 111 11 111 11 11 11' 111 1 111 1 111 1 11111111111111111111111111111111111 1 111111111111111' 1111 1 9 PRODU § §hr:~~~~n f~~,;eT:~a~~1ii~:::::::::::::::::::~ :: Stocks at end of t he month at Texas Mil § :: G]1I""I1"I1I1I1I1II1"111I1I1I1I1I1111I111I111I1I11I11I1I111I111111 11 11I11 11IIIIIIUIIIIIIIII III IIIIII.IIIIIIIIIII III I,I"IIIIIIIII III I1II III II U. I I.IIIIIIIIIIIIIIIIIII II I I I IIIII III IIII .IIII UI 1 111 1111 1 1111111111 1111 11111111111.,1111111111 1 11111111118 8 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Fedenll Reserve Board. as of March 24. Production in basic industries declined in February from the high rate of output in January but continued above the level of a year ago. Notwithstanding a decline in prices of agricultural commodities, the average of wholesale prices rose slightly owing to a further advance in prices of cer· tain other commodities. PRODUCTION The Federal Reserve Board's index of production in twenty-two basic industries, which is adjusted to allow for differences in the number of working days and for seasonal variations, declined 3 per cent in February but continued to be higher than at any time since the peak reached in May, 1923. Average daily output of iron and steel was exceptionally heavy, and copper production per day was the largest since 1918. There was a slight decline in activity in the woolen industry and more considerable reductions in the output of lumber, cement, bituminous coal, and crude petroleum. Production of automobiles increased 19 per cent in February, the largest monthly increase in nearly two years, but the output was still over 25 per cent smaller than a year ago. Factory employment increased by about 2 per cent in February, considerable increases being reported for the automobile, iron and steel, and clothing industries, while the number of workers in the packing and cement industries declined. Earnings of industrial workers in February were larger than in January, reflecting in part the resumption of full time work after the inventory period. Reports to the Department of Agriculture of intentions Lo plant in 1925 indicate that the acreage of practically all grains and of tobacco will be larger and that of white potatoes smaller than in 1924. TRADE Total railroad freight movements continued at approximately the same daily rate in February as in January, and shipments of merchandise increased in recent weeks and were much larger than a year ago. Wholesale and retail sales were smaller during February than a year ago, owing partly to the fact that this year February had one less busi- Index of U. S. Bureau of Labor Statistics. Latest figures (1913=100, base adopted by Bureau.) February, 161. IQ2S.) ness 'day. Department stores' sales were one per cent smaller in February than in the corresponding month in 1924,. Wholesale trade in all lines except meats and hard· ware was less than a year ago, and showed in February about the usual seasonal changes. Sales of groceries, meats, and drugs decreased, while sales of dry goods and shoes increased. PRICES The slight rise in the wholesale price index of the Bureau of Labor Statistics was due to advances in the fuel and lighting group largely in petroleum and building materials, while prices of all other commodity groups declined. In the first three weeks of March prices of hogs, cotton goods, and rubber increased, while prices of many other commodities decreased, the largest decreases being those for wheat and other grains. BANK CREDIT Loans of member banks in principal cities continued to increase between the middle of February and the middle of March, and on March 11th were larger than at any time in the past four years. The volume of loans for commercial purposes has been at a high and almost constant level since last autumn, and loans on stocks and bonds, which have increased continuously since the summer of 1924, reached in March the largest amount on record. Increases in loans were accompanied by further reduction in the holdings of securities, particularly at banks in the financial centers. At the reserve banks demand for credit increased between the end of January and the middle of March, chiefly as the result of the export demand for gold and the growth in domestic currency requirements, with the consequence that e,a rning assets increased. After March 15th, however, temporary abundance of funds arising out of Treasury operations resulted in a sharp reduction in member bank borrowings. Somewhat firmer conditions in the money market in the later part of February and the early weeks of March were indicated by an advance of the rate on 4·6 months prime commercial paper from 3% to 4, per cent. Index of 22 basic commodities corrected for f;ea sonal variations (1919=100). Latest figures-February, 124.