The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
:111I11I1I11I1I" ...... IIII.II.n .. II.,II ... IIII ....... IIIIIII . . nll .. IIII ...... II .... ' 11I1I1I11I11I1I1I 111I11I11I1I1I1I1I1I."IIIUn .. II ....... IIIII"''''' ... IIIIIIIIII''.''""1I1t .... , ... II .. III1II1I ... II ... ~ ... I .... IIII .. IIII .......... IIII ...... II.!
MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
C. C. WALSH,
(
CRAS. C. RALL-W. J. EVANS,
Chairman and Federal Reserve Agent
I
Assistont Federol Reserve Agent.
(Compiled March 15, 1927)
:
,.. ...... 1111 .................. 1111 ....... 1111 .. 1111 ............................... 1 .. 11 .. 11111111111111 .... 1111111 .... 11.111111111111111111111 ...... 1111 ....... 1111 ... 11.1 .... 111 ... 11111111111.11111 ... 11 .................... " ............ 11 ......... . , :
i
:. .... 11 ... 1111 .. 1111 ...... 111111111111 ........... 111111111111 .... 11 ........ 1111111 .... 11111 .. 111.111111111 .. 1111111.1.11111'11111111111.111'11111111111111.1111111111111.11.1111111 ...... IIIII.IIIII •••• I .. UU ..... II .. IIU ..... IIII ......... ,IIU ... IIII ...
Volume 12, No.2
Dallas, Texas, April 1, 1927
'fhis copy released for publicntion in morning papers
March 29
DISTRICT SUMMARY
1;1 ••• ,............................................. ,.1., •••••• ""1,1 ••• 1,1"",,, ••• 1.1"'1"' •••• 1 ••• 1 •••• 11.,1.1.1.1.1.1"",'"'.,.1"'1111.1 ••••• 1 •••••• 11."'","
~••
::
§
:
:
§
:
§
••• 1 1 " " " " ' •• 11.1.,.,11"1"'.1"'1, •• 1""1"'"111'1'1 •• 1, •• 1.1 ••••• 1.11"'1'"[!I
THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
.=::
:
:
February
January
Inc. or Dee.
Bank debits to individual DCcounts (at 16 cities) ................................................................................_........... $726,134,000
$792,849,000
Dec.
8.4 %
Department store soles..............................................................................................................................................
Dec.
1.0%
Reserve Bank loans to member banks ot end of month .................................................................................. $ 8,686,552
$ 8,763,169
Dec.
8.4 %
Reserve Bank ratio ot end of month ................................................................................................................
74.00/0
69.8% Inc.
4.2 points
Building permit valuations a t In"g"r centcrs ...................................................................................................... $ 7,546,601
$ 7,888,029
Dec.
3.7 %
Commercial failures (number) ................................................................................................ ........................ .... ..
108
134
Dec.
28.1 %
,g,
Lumber orders nt pine mills (per cent of normal production)...................................................................
~ g?lm~~·dc~~~io~il(b~e:ref~~~.~.~~~.~~~.~.:::·.:::::::::: ..~::::::::::::: ..::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~:::~::::::::~::::::::
$
l~:m:~~~
80 %
$
2i:m:~i~
87%
g:~:
Dec.
E
:
:
E
E
:
:
:
~~::~ ~
7 points
;:
l!.I " ,I.IIIII.I •• I •• I ••••• IIIII •• II.I ••••••••• I.I.III.I.1.111.1.,.1.1 ••• 1.1.'.,.1.1.1.1.1.1111'1,.11.111.1.1.1 ••••• 111'1,1111111 •• ,1.111111111111111 •• 11.11.1"1111.1.,.1.11 •• '1",1. , .1.1.1,,"111.1.1.1 •••••• 1.1 ••• 1 •••• 1.1., •• I.I ••••• II.I.I.,I.I.IIII""'l!I
(
I
Increased bank deposits, rising livestock values, and a
larger volume of public spending at principal cities than a
year ago were outstanding features of the business and
mdustrial situation of this district during the past month.
The fact that charges to depositors' accounts at sixteen
principal cities, which is the best available measure of public spending, were 6 per cent larger in February than in the
same month last year is a significant development under
present conditions, and indicates that this district is becoming less dependent upon cotton, its principal product. While
department store sales were 6 per cent less than in February
a year ago, it should be noted that credit sales of these firms
Were 12 per cent less, disclosing that more goods are being
bought for cash than was the case a year ago. Wholesale
distribution reflected a seasonal decline from the previous
month and continued to fall considerably short of the same
Illonth last year.
The return to prosperity of the livestock industry has
served to offset to some extent the unfavorable features of
the agricultural situation. It has impressed upon the farmer
the wisdom of raising his own meat and of extending his operations to include livestock as a portion of the produ cts of
~he farm. The physical condition of the livestock industry
IS now beLter than at any time since 1919 and market values
for livestock have turned sharply upward. There is a broad
demand for stockers at steadily rising prices. The presence
?f these factors makes the outlook for the industry exceedlDgly favorable.
J The deposits of member banks rose $27,255,000 between
nnuary 26 and February 23, and on the latter date were
$2,.355,000 greater than on the corresponding date in 1926.
It IS significant to note that this was the first time in seven
months that deposits for the current month exceeded those
of the corresponding month of the previous year. The credit
situation has shown no material change. The demand for
credit continued relatively light and it is evident that there
are ample funds with which to finance the legitimate needs
of business and industry. Borrowings at the Federal Reserve
Bank reflected a slight decline during the six week period
ending March 15, and on the latter date were approximately
$2,500,000 less than on the same date in 1926. A 'factor of
more than passing interest was the heavy subscriptions to
the United States Treasury March 15th issues of 3Ys and
314 per cent Certificates of Indebtedness, disclosing that
there is still a large volume of funds in this district seeking
an investment outlet. Despite the low yield, subscriptions
to these issues amounted to $37,000,000 against which allot·
ments to the extent of $15,4.27,000 were made. While the
business mortality rate reflected a seasonal decline as compared to January, it was considerably higher than a year ago.
Farming operations are still behind schedule, yet ther~
is an excellent season in the ground throughout the district
and should favorable weather obtain during the next few
weeks. the handicap of a late start can be largely overcome.
Small grains are doing well and fair progress has been
made with the planting of corn. The planting of cotton is
well under way in the southern part of Texas and is gradu.
ally extending northward.
Construction activity, as measured by the valuation of
permits issued at principal cities, was 17 per cent less than
in the corresponding month last year. Production, ship.
ments, and new orders for lumber reflected a decline but
the production and shipments of cement were slightly larger.
CROP CONDITIONS
h Although farmers generally have made progress during
t e past six weeks with farming operations, they have not
completed as much of this work as is usual at this time. In
the Rio Grande Valley and the Coast section of Texas, and
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
in localities elsewhere, plowing has been practically completed, yet in many sections of the district much of this
work remains to be done_
The seeding of corn has been general throughout the district and much of it is now completed, although progress h ... s
not been as rapid as is usual. Early reports indicate that
the acreage planted in corn this year will be considerably
larger than a year ago_ In the southern part of Texas the
planting of cotton has made considerable headway and the
new crop is coming up to a good stand, although growth
has been slow on account of the cool weather. An excellent surface and subsoil moisture now obtains in every section of the district and with the appearance of weather
favorable for the completion of planting and plowing operations, this year's crops will begin their growth under excellent conditiqns.
Early reports indicate that farmers are showing a disposition to plant a larger acreage to gardens, and are milking
more cows and raising more poultry than in many years.
There is also a noticeable disposition to raise a sufficient
number of hogs on the farm to provide meat for their families. This, together with the large supply of feed on the
district's farms, should enable the farmers to live cheap ly
and to produce this year's crops at a minimum of expense,
and thereby reduce the demand for credit. Indications also
point to the fact that farmers will carry out programs of
diversification to a greater extent than heretofore. According to the report just released by the United States
Department of Agriculture, the planting intentions of Texas
farmers, expressed in percentage of acreage grown for harvest in 1926, are as follows : Corn, 135% ; Oats, 115% ;
Barley, 200 % ; Rice, 86 70 Grain Sorghums, 90 % ; Tame
Hay, 101 % Peanuts, 200 % ; Potatoes, 155 %; Sweet Potatoes, 200 % .
The small grain crops have made good growth. The acreage sown to winter wheat was the largest since 1919 and
present prospects point toward another large crop . The
acreage sown in oats last fall was much larger than usual
and there has been a considerable amount of spring oats
sown. In North Texas some damage to the grain crops is
reported from the activities of the green bugs. While ~s
yet no considerable damage has been done, some concern IS
being felt regarding the future activities of this pest. The
supplies of grains on Texas farms as of March 1st ~ere the
huO"est in several years. The Department of Agnculture
esthnated that 2,296,000 bushels of wheat remained on Texas
farms March 1st as compared to 328,000 bushels in 1926.
Out of the 1926 crop it is estimated that 22,957,000 bushels
were shipped out of the counties where grown. This represents 70 per cent of the total crop as compared to 50 per
cent in 1925 and a ten year average of 51 per cent. There
were 25,936,000 bushels of oats remaining on Texas farms
which represents 31 per cent of the total production during
the year 1926. Shipments of oats out of the counties where
grown amounted to 37 per cent of the 1926 production or
30,956,000 bushels. Out of the 106,863,000 bushels of
corn produced in Texas in 1926, 50,226,000 bushels remained on farms on March 1st. This is the largest amount of
corn held on farms at this date in any year since 1922. The
percentage of corn that was of merchantable quality was
estimated at 89 pel' cent as compared to 40 per cent in 1925
and 69 per cent for the ten year average.
The Department of Agriculture estimated that the farm
labor supply on March 1st was 92 per cent of normal as
against a demand of 81 per cent. This compares with a
supply of 94. per cent and demand of 83 per cent on March
], 1926.
LIVESTOCK
It is now evident that livestock have passed through the
winter in excellent condition, and with the spring ranges
opening up several weeks earlier than usual and with prices
of livestock showing an upward trend, the outlook for the
industry is exceptionally bright. It appears that the livestock industry is now in a better position than at any time
since 1919. In some sections the condition of livestock has
shown steady improvement through the winter and in most
other sections declines have been smalL Reports indicate
that fat cattle are already in evidence in some sections and
that the spring movements to market will soon begin. Prospects point toward large calf, lamb an'd kid crops and due '
to' excellent condition of livestock the calves should be
strong and healthy. Early lambing in small flocks is about
completed and in range flocks it is getting well under way.
Shearing of goats is making good progress but the clip is
reported to be light as shedding has appeared in some instances. There is a strong demand for all classes of stockers
but young steers and cows are in greatest demand. Due to
the fact that ranges generally are understocked, the supply
of stock for sales for restocking purposes has not been sufficient to meet the demand with the result that prices have
been bid up to a high level and are now well above those
obtaining a year ago.
Receipts of cattle and calves at the Fort
Worth market during February reflected a
decline as compared to both the previous
month and the same month last year. Hog receipts were
moderately larger than in January and were substantially
greater than in February, 1926. The movement of sheep
while less than in the previous month was greater than a
year ago.
Movements
and Prices
0111 11 111 1 11 1111 1 111 1111 111 1 111 111 111 11111111111 1111 11 1 111111111 I IIII I II I I I111 111 1 111111 11 11 1111 11 1 11111 11 11 1111 1111 1111m
~
FOR']' WORTH LIVESTOCK RECEIPTS
~
Fcbl'uat·y
~
~~~727
Cattle .... ..... ........
E Cnlves .. ............ .... 8.729
• Hogs .................... 37.511
§ Sheep ........... ....... 11.674
8 ..
February
51:!~2
11.824
22.4 58
8.753
Loss or
L
~~~~G5
L 8.095
G 15.053
G 2.921
::
Janua ry
6~~~~7
12.510
29.46 '1
18.244
Loss
L
0"
~
1~~~~0 ~
L 3.781
G 8.047
L 6.570.
::
:
::
11111 11 11 1 11111111 1 11 11 111 1 1, .1 111 111 1111 111 111 111 111111111111111 111 1111 1 11 111111111 1111 1 1111111 11 111111111 111"1 1 11 1 [:]
Strength in the market prices for practically all classes
of cattle characterized the trade during February and the
first half of March. After the first week in February
values worked steadily upward and on some classes the
highest prices of the year were recorded. The best demand
has been for beef steers, fat cows and calves. There was a
strong demand for fat cows and during a greater portion
of the period the supply was insufficient to meet the demand.
Practically the only weak spot in the market has been the
f ) IIII J1111111 11 1111J 11111 111 111111 11 111 UIII1 IIIIII II II I I I11 11 11 1111 111111111 " 1111 11 11 11 11111111111 1111 1111 111 1111 1111 1
0
I
E:
:
§
§
§.
co:~:~:=:~:~:=s,:;;~, p~;!~, .:~r:.1
B,,' ."...
Stockel' s teer s ....................................................
Butcher cows ........... _.......................................
Stocker cows .............................................. ........
Ca lves .. .................. ..............................................
Hogs ....................................................................
Sheep ....................................................................
Lambs ..................................................................
8.60
6.60
6.60
9.60
12.70
9.00
l2. G5
8.S5
6. 25
fi.25
10.00
18.60
9.50
15.00
8.00::
6.6 0
6.25:
10.75 g
12.40 g
8.50 g.
12.25
E t UIIIIIIIU I IIIII U IIIIIIIII II IIIIIIIIIIIII IIII II Il II I II II IIIIU I " " 1I1I 1I 111I 1I1 111 1I 1I Ulll llll lllllt l Utlll llll ll l' CJ
MONTHLY BUSINESS REVIEW
po-or market for canner and cutter cows. An outstanding
feature of the market was the exceptionally broad demand
for stocker steers and cows, and at times they brought prices
equally as high as fat cattle. Hog prices have shown a declining tendency . Due to the fact that receipts have been
heavier, packers have been able to fill their requirements out
of local supplies. Prices on sheep and lambs have worked
to higher levels.
The February receipts and exports of cotton through the ports of Houston and
Galveston, while seasonally less than in
January, continued to reflect substantial increases as compared to the same month a year ago. Exports of cotton
Cotton
Movements
3
(including linters) frO'm the United States during February
amounted to 1,010,507 bales as cO'mpared to' 1,115,792 bales
in January and 556,185 bales in February last year.
r""'~;;;~;'~~~=~;'~~~~;;~~";~;~~7~~~:"'1
E
:
N et receipts ................._... 288.182
E xports ................................ 894.040
Stocks. Februa ry 28........
175.818
.257.886
8.212.962
2.729.682
688.256
2.711.247
2.225.511 E
587.808:
[!] I UIlIIIlIIIIIIIIIIIIIIIIl .... IIIIIII.,1111I11I1I1I1I1I1I11I1I1I1I1I1I11I11I1IIIIIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIIIIII[!]
0.1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111.11.11.111111111111118
-
SEASON'S RECEIPTS. EXPORTS. AND STOCKS AT ALL
::
~:r "~~:~~'~~=:;;"~;;~~;';";:~~~:,~~:~{~"l: n.o,;,"__=E_D_::~:Pi~~~;:~ F'b;:~~~:; i: _~
:
Net receipts ........................ 202.672
Ex ports ................................ 210.714
E Stocks. F ebruary 28........
97 .801
99.169
8.168,472
1.898.488
878.524
E xports: Great Britain ................................
F rance ............................................
Cont inent ..............._.......................
J apan-China ................................
Mexico ............................................
'Potal foreig n por ts ......................
Stocks at a ll U. S. ports. F ebr uary 28 ........
2.428.879
1.400.792:
680.591 E
1.896.628
787.870
8.576. 295
1.155. 097
14.207
7.480.092
2.790.684
1.775.798
706.046
2.548.654
807.916
41.781
5.880.190
1.391.468
l!JIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.II.IIIIIIIIIIIIIIIIIUIIIIIII.II.,IIIIII.II.1I1I.IIIIIII.II.IIIIIIIItIlIlIlIlIItIlI'1!)
8UIIIII"IIIIIIIIIIIIIIIIIIIIIIIII.11I1I11I111111I11I11I1I1I1I1I1I1I1I1I1I1I1I1I1I1I111I1111111111111111111111111111111.1!J
8 11 11111111111111.111111111111111111111111111111111111111111111111.,11111IJUI.IIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIII1I1(!)
~_;: ~F~O~I. ~~~B~,~:~L:V::~::S::C::S: : ;7'~6·~N.28:;0~08 F1 e~7b~'86;0
ot her foreign ports ......................................... .
For coast wise ports ................................................ 10.500
In compresses a nd depots ............. _.......................521.456
~
:::::_1
8.000
509.608
Tota l .................................................................... 638.256
SPOT COTTON PRICES
(Middling' Basis )
587.808
811111111 •••• 11111111111111111111.1 •• 1111111111111111111111111111111111.1111111111111111111111111111111111111 ••••
E
1111.1'8
-
F ebruary.
High
New York .................................................... 14.50
New Orleans ............................................... . 14.21
Dallas ........................................................... . 18.40
Houston ... _................................................. . 14.20
Galveston ............... ...................................... 14.20
1927 March 15.
Low
1927
13.65
14.05
18.84
18.75
12.40
12.90
13.20
18.75
13.25
13.80
l!JUIIlIIlIlIlIIIlIIlIlIlIlIIlIIlIIIIlIlIlIlIlIlIlIlIIIlIIIlIl .. UIl ........ UIIlIlIIlII11111111111111"'11111111111111"8
8·1111111111111111111111.1111111111111.,.11.,111111111111111.111111".11.,1111111111111111111111".11111111111111111111"11111111111111111111111111111111111111111111111111111111111111111111111111111.11.11111111111111111111111111.1111 •••••• 1111.11.11.118
E
COTTON CONSUMED AND ON HAND
:
Ig:~ ;)~r:~;':.if i;~;: ; : ~;::: : : .,~~~O:.;;~'~~~~~~~~f . :;:;, ~~'~~1~:Fob?2~; I
;;
(b) in public storage and compresses......................
............
............
5.068.744
4.523.820
............
....... .. _.
5.448.820
4.740.450:
m l""' ••••••••••••••••••••••• , ••• , ••• " ••• III ••••••••• ,'.'1', ••• 1.1 ••• ,.1.,1 •••• ,.1.111.1, •• 1.111.1.111111111.111.,,11.,11 11 1.111111.1,1'1.11111.1111"1 . 1'1.,1111111111111111'.11,1'1.1 ••• 1.,1,.,.,1,1.1.1.",1,1,.,111111111,.,1111111111111111,.,1 •• 1 ••
.
\
COTTONSEED PRODUCTS
A further strengthening O'f the market O'n all classes O'f
cQttO'nseed products was reflected in repO'rts received frO'm
63 cO'ttO'nseed O'il mills in this district duririg February.
The average price received for crude O'il advanced frO'm
$.0686 per PO'und in January to' $.0711 per PO'und in February and cake and meal increased frO'm $24..48 per tO'n in the
former mO'nth to' $26.11 per ton in the latter month. Hulls
sold at an average price of $4..52 per ton in Febru ar y as
compared to' $4.32 per tO'n in the previO'us mO'nth. The
average price received fO'r linters amO'unted to' $.0208 per
pound as .against $.0188 per PO'und in January. These mills
purchased 54.,342 tO'ns O'f cO'ttO'nseed during the mO'nth at an
average price O'f $25.97 per tO'n, as cO'mpared to 81,112 tO'ns
bO'ught in January at an average price O'f $22.12 per to'n.
qJ" .. IIIIIIIIIISITATi'STicISIlONIIC.OTlrot:;SEE~IIIAND"CIOTTONSEEDI1IIIIII1I ... I@
E
E
:
:
;;
E
:
:
E
:
:
E
~
}
10
~"'I'IIII'I"'I'IIIII'I'II""III"""'I"II"I"'" ,.,.1.1.1.11""',1"11.1.1.111".111,,11111111111111111111.1.,.l lm
E CO'f'I'ONSEED PRODUCTS SHIPPED AND AVERAGE PRICE .:
;;
RECEIVED
,:
I~ ~' ~;\ ~~; i : : : : "·1:1~~~:'~~1i~i1!~:!
;;
Linters ..................... _...........................
11.876.694 lbs.
.0208 per lb.
:
[ij1111 1l ..... III.IIIIIIIIII ... IIII1I1I1I1 ...... IIII.IIIU .... U.IIIIIII.1I1I1I1I1I1I11"111111""1111111'1111"11111111'0
::
:
:
E
:
E
::
:
:
:
E
:
:
:
PRODUCT S
E
Texas
U nIted States
E
Aug ust 1 to F ebruary 28 Aug ust 1 to February 28 :
This Season Last Season 'Phis Season L ast Season :
Cottons eed r eceived
:
a t mills (tons ) .... 1.765.288
1.882.068
6.752.931
5.192.848 E
Cottonseed crushed
:
(tons ) .................... 1.502.622
1.172.577
4.951.G71
4.478.441 :
Cottonseed on hand
E
(tons ) ....................
267.982
180.584
818.528
744.246 :
Crude oil produced
:
(Ibs.) .. ................. .419.452.328 829.407.000 1.471.762.045 1.288.200.195 E
Cuke and m eal pro::
duced (tons ) ......
694.408
551.000
2.218.245
2.074.697:
Hull produced
:
(tons ) ....................
444.426
881.000
1.442.861
1.280.000 E
Linters produced
:
(600- lb. ba les )......
248 .804
222.000
806.087
886.000 E
Stocks on hand
:
Feb. 28 :
:
Crude oil (pounds ) .. 80 .854 .526 18.017.000
95.898.521
57.709.000:
Cake and m eals
:
(tons ) ..................
88. 622
87.000
158.639
857.416 E
Hulls (tons ) ..........
76.889
72.000
226.521
179.000:
Linters (500-lb.
:
ba les ) ....................
57.414
48.000
194.856
198.000:
1!I .............
IIIIIIIIIIIIIIIIIIIIII .. IIIIIIIIIIIIIIII .. I1I1 •••• IIIII.III.IIIIIUU.,111IltllllllltllUIIIIIIIIIII ••
IIIL
4
MONTHLY BUSINESS REVIEW
TEXTILE MILLING
Reports from mills in this district indicate a continuation
of improvement in the textile industry during February.
Consumption of cotton amounted to 2,304' bales as compared
to 2,222 bales in January and 2,369 bales in February a
year ago. Spindle activity was greater than in either the
previous month or the same month last year. Production
showed an increase over January and was only slightly
below that in February, 1926. Unfilled orders on hand at
the close of the month were substantially greater than last
year and were slightly above those on hand at the end of
the previous month. Stocks on hand on February 28, were
smaller than either last month or a year ago.
unfavorable weather but reports indicate that with the appearance of fair weather, buying is showing a tendency to
increase. As retailers are limiting purchases to actual needs
the increased consumer demand is being quickly reflected
in wholesale channels. Collections continued slow.
The demand for farm implements remained at a very low
level. Sales of reporting firms were not only 12.2 per cent
less than in January but were 4,9.6 per cent less than during
the same month last year. Wherever possible, the farmers
are repairing old implements rather than buying new ones
and are, therefore, limiting purchases to actual necessities.
Prices remained generally steady.
The distribution of groceries at wholesale reflected a decline of 2.4 per cent as compared to January and was 7.3
S
TEXTILE MILLING STATISTICS
E per cent less than in February a year ago. While buying
E:
February
February
January §.
is somewhat spotted, dealers report that the buying demand
1927
1926
1927
generally is fair. Collections showed an improvement over
§ Number bales cons umed ....................
2.304
2.369
2.222 §
those of the previous month. Prices reflected no material
:: Number spindles active.................... 64.386
64.268
62.268::
§ Number pounds cloth produced ...... 1.069.401
1.100.005
1.025.097 §
change.
The wholesale drug trade remained generally quiet durWHOLESALE TRADE
ing February. Sales reflected a further decline of 8.6 per
Distribution of merchandise at wholesale reflected a sea- cent from the previous month and were 13.6 per cent less
sonal recession as compared to the previous month and was than in the same month last year. Retailers have continued
considerably below that for the same month a year ago. to limit orders to immediate needs but some dealers report
Sales in every reporting line of trade reflected a decline that with the appearance of clear weather business has
from February last year, ranging from 7.3 per cent in the shown indications of increasing. Collections have continued
case of groceries to 49.6 per cent in farm implements. Busi- slow.
ness since the beginning of the year has been retarded to
Sales of reporting hardware firms reflected a further
some extent by the bad weather and dealers state that as fair decline of 5.4. per cent as compared to the previous month
weather has made its appearance buying has increased. Re- and were 12.1 per cent less than in February, 1926. The
tailers have not deviated from the policy of limiting pur- demand for light hardware has been slow. Collections have
chases to actual requirements and reports indicate that con- continued slow.
servatism in certain quarters has increased, yet the disposition on the part of the retailers to keep commitments closely 8 ..
::
CONDITION OF WHOLESALE TRADE DURING FEB. 1927
::
aligned with consumer demand is a prudent and reassuring
policy.
Sales of reporting dry goods firms reflected a large seacompared with compared with compared with
sonal increase of 35.6 per cent as compared to the previous
F eb.
Jan. same period
Fe b.
Jan.
month but fell 14.2 per cent under those for the correspond1926
1927
last year.
1926
1927
Groceries ......................- 7. S
- 2.4
- 7.8
- 6.9
+1.0
ing month last year. Buying in February was stimulated
Dry Goods ..............•.....- 14.2
+85.6
- 14.2
-11.S
-2.6
by the opening of the spring buying season at the principal
Farm Implements ......- 49.6
- 12.2
-47.6
+ 2.0
+3.3
§ Drugs ............................- 13.6
- 2.4
-1.4 §
distributing centers. Consumer demand in the rural sec- :: Hardware ....................-12.1 - 8. 6 - 11.0 - 7.7
- 5.4
7.2
+3.8::
tions continued light during February due in part to the
{!l1111 •• IIISIIIII ••• I ••••••••• I.II ••••••••••••• II.IIII.11111,1111111111111111111,.1111.11111,111111111111111.1IIIIIIIIIIlrEJ
[!J ' IIIIIII.IIII •• I.IIIII •••• I •••• III.' ••• I.' ••• IIIIII •• '11111 •• 11111111,.1'1111111111111111111111111111111111IIIIIIIIIIII[!)
111111111111111111111111111111 1 1111111111111111111111111111111111111 ... 1111111111 ..... '1111111'1111111111111111111110
:;
P"""~'~~:.'~~~:~:.::~::,::' ~::~~
I:::::::::
[!JIIIIIIIIIIIIIIIIIII'II"IIIIIIIIIIIIIIIII ••• ,.,1111111,111'."1111111' 111 ,11 1111 "111'11111111111111111.1.1.1.,1,1.,11 .0
RETAIL TRADE
Department store sales reflected a further slight decline
of l.0 per cent as compared to the previous month and were
m
...
,IIII .. IIIII ...... IIIIIIIIUllIlIIlU .... UIIlIlIlIIIIIUU .. I1II'IIIIII ... UIIi11111111111111111111111111111111111111111111UIIIIIIIIIIIIII111111111111111111111111111111111111111111111111111111111111111111111111"111,1,1,111111,1111111'1,1,1,,,,1
~
::.: __
::
5.8 per 'cent less than in the corresponding month last year.
The unseasonal weather has had a tendency to restrict sales,
S
BUSINESS OF DEPARTMENT STORES
'futal Sales .
Februa ry. 1927. compared with February. 1926........................................
F ebruary. 1927. compared with January. 1927 ... _...................................
Janua l'y 1 to date. compared with same period last year..............................
Credit SaleS :
.
February. 1927, compared with February. 1926........................................
February. 1927. compared with Janual·Y. 1927..._......................... ..........
January 1 to date. compared with same period last year ............................
Stocks :
Februa ry. 1927, compared with February. 1926 ........................................
F ebruary. 1927. compared with Janunry. 1927 .. ................................. .... .
Percentage of sa les to average stock in ;
Februar y. 1926 ..........................................................................._.......................
February. 1927 ........... ............................................... _........_ ......................... ..
Percentage of sales to average stock
January 1. to February 28. 1926 ...................................................... ............. .
Janual'y 1. to Feb. 28. 1927............................................................................
Rutio of outstanding Ol'ders to last year's purchases ......................................
Ratio of February collections to accounts "eceivnble due and outstnnd-
Dallas
-13 .2
- 2.2
-14.0
Fort Worth
+ 7.7
+17 .8
+ 3.8
Hous ton
+ 4.1
- 9.1
+ 3.2
+
+
All
Other
- 7.S
- 6.0
- 4..5
Total
District
- 6.8
- 1.0
- 6.0
- 22 .5
-12.1
- 19.5
+ 6.8
+10.4
+22.0
2.9
-11.9
1.5
-
9.5
6.0
6.9
-
- 17.4
+15.0
-
-
-
8.7
+ 6.5
20.2
20.6
15.6
19.0
18.6
19.7
20.1
20.2
19.1
20.1
41.9
42.5
7.9
81.4
86.9
4.0
40.9
42.4
9.6
89.5
40.6
7.8
=::
::
-U.5
+15.4
§
::
89.0
40.8
7.1
9.4
+
.8
2.8
-U.6
5.8
9.9
+10.8
81.9
82.9
[!) ... IIIIIIII ... II., ............ III ... IIIIIIIII'UIIIlIIIlIlIl.I.III"'"I1I1I1 ... 1I11111111111111111111.111111111111111111 , 111111111.,111111,1,1111,"1111"1,11111111,1'111111111111111111111'11',1,.1I1I1I1I.IIIIIIIIIIUIIIIfIIl.fllllllllflll"II.III,,[!J
MONTHLY BUSINESS REVIEW
but with the appearance of fair weather trade is improving.
, Reflecting the purchases of spring merchandise, stocks on
hand at the end of February were 10.8 per cent larger than
a month earlier but were 11.5 per cent below those carried
at the close of February last year. The percentage of sales
to average stocks during the first two months of 1927 was
40.8 as compared to 39.0 during the corresponding period
of 1926, reflecting a slightly better turnover of stocks.
The ratio of February collections to accounts receivable
on February 1 was 35.1 as compared to 36.0 in January, and
36.7 in February, 1926.
FINANCIAL
Due to the short month and to seasonal influences, charges
to depositors' accounts at banks located ill the sixteen
principal cities of this district were 8.4, per cent less than
in January, but were 6.3 per cent greater than in the cor·
responding month of last year. The aggregate for the month
Was $726,134,,000 as compared to $792,84,9,000 in January
and $682,84,6,000 in February, 1926.
G
II I III I III I I I IIIIIIIIIIII I IIIIII I IIII I II I I III II IIII II I I I I 1 1111 111111111 1 111 11 1'111 11 111 111111'1111111 111111 111 11 11 11 1.'m
~
::
r'.
r
DEBI'fS 'fO INDIVIDUAL ACCOUNTS
(In '.I'housands of Dollars )
February
1927
Austin ........................ $ 17.998
B eaumon t ................ 22.944
COI'sica nn ................
6.261
Dallas ........................ 196.6g 1
EI Paso .................... 28.602
Ft. Worth ................ 82.947
Galveston , .................. 46,659
Houston .................... 170.888
Port Arthur ............
9.001
Roswell ....................
2.813
San Antonio .......... 88.410
: Shroveport ................ S6 . ~89
§ Texnrkllna ...... .......... 12.267
~ 'fucson ......................
8.879
g Waco ........................ 16.989
: Wichita Falls............ 28.926
:: Total. 11th
;:
Dis trict ............ $726 .134
GJ
::
::
F ebruary
1926
$ 19.588
21.035
6.942
207 .691
88.714
78.878
85.600
124.867
8.773
2.743
87.070
88 ,808
9.902
8.612
16.134
87.594
Inc. or
Dec.
- 8.1
9.1
- 9.8
- 6.S
-15.2
+12.8
+81.4
+8 6.6
+ 2.6
+ 2.6
3.6
- 4.8
+23.8
- 2.7
+ 6.8
-23.1
January
1927
S 19,522
27 .21 2
8.614
223.308
88.301
90.302
66.362
162,506
9.499
8.240
44.734
41.862
11.274
9.997
18.826
88.812
Inc. or
Dec.
- 7.8
- 15.7
-27.S
- 11.9
-14.1
- 8.1
- 17.7
+ 4.8
- 6.2
- 13.2
- 14.1
- 10.7
+ 8.7
- 16.2
- 9.8
-14.4
$082.846
+ 6.3
$792.849
-
+
+
8.4
:
§
§
g
-
§
::
11111 111 111 11 111111111 11 111111""1111 IIUII 11 11111111 11 111 l ilt If 1111 111111 .. 111111111111 11 1111 1 11 11 1111 111111111 11 11 110
5
A further decline was registered in the vol·
ume of acceptances executed by accepting
banks of this district and which were out·
standing on February 28th. Acceptances of these banks
outstanding at the close of February amounted to $2,092,730.14 as compared to $4.,063,210.97 at the end of January.
The amount of acceptances executed against import and ex·
port transactions declined from $2,102,997.37 on January
31 to $1,180,405.88 on February 28, while those based on
domestic shipment and storage of goods decreased from
$4,063,210.97 on the former date to $2,092,730.14 on the
latter date.
Acceptance
Market
Condition of
Member Banks
in Selected
Cities
Substantial increases in loans, investments
and net demand deposits were shown in reo
ports from member banks in selected cities
during the four·week period ending March
2. Investments in U. S. securities increased
$3,151,000 and there was a gain of $1,.
265,000 in investments in other securities. Reflecting the
seasonal demand for credit incident to the spting require·
ments of business and industry, commercial loans increased
from $241,807,000 on February 2 to $249,290,000 on March
2, and loans on corporate securities rose $357,000 during
the same period. It should be noted that commercial loans
on March 2 were $13,892,000 greater than a year earlier,
while loans on corporate securities were $6,287,000 less, in·
dicating that during the past year there has been a shifting
of funds from speculative to commercial channels. The net
demand deposits of these banks during the past month in·
creased $11,24.5,000 and time deposits rose $3,4.73,000. As
compared to a year ago, net demand deposits on March 2
were $2,343,000 greater and time deposits were $8,596,000
larger. Due to the increase in deposits necessitating larger
reserves, the reserve deposits of these banks showed a gain of
$3,982,000 during the month. Their bills payable and reo
discounts with the Federal Reserve Bank amounted to $866,.
000 on March 2 as compared to $2,213,000 on February 2
and $6,030,000 on March 3, 1926.
(!]' . ,ll l lt llll ll l1l1 l lllll l1 ll ll l .It . , 1 11t 1 11 11 111 111l11111 1111 111111111111 1 111 11 1 11 11 11 111 1 11 111"111 111 111 111 11 1111 111 1 111 1 111 , 'IIIII IIII"U ' I II I III IIIII II II III II II I I II III" 1I 1I 1I 111 1 1111 11I II II II III I I IIII I III I III I III III I I I I III I II II IIIIIII II IIIIIIII I[!J
g
CONDITION STATISTICS OF MEMBER BANKS IN SELEC'J.'IED CITIES
:
I ~6!:'. ~}ill~}~~f.~~£i;~i~~~~l;;~~;~S~F;;~fi~}~~~ :2~i9!.h2f9ioi.;01010r :2C1;li'~8iO!7i.'oi lo M';2C3~5"8i9l8i.o·i fo! i
.:
All other lonns ................ _............................_....................... _......................... _...... _.......................
Net demand deposits ......................................................... _ ................................................... -.........
Time deposits .............................................. _.......................................................................................
1~: Reserve with F eder nl Reserve Bank......................... .....................................................................
11 BUlB payable Imd rediscounts with Federal Reserve Bunk ................................ -..................
E
• Ratio of lonns· to net d&mand deposits ................................................ ....... -...............................
:
·Loans include only items 4 and 6.
7.
8.
'.
281.466 ,000
106.696.000
82.702.000
866.000
89 %
270.221 .000
103.228 .000
28.720.000
2.213.000
90 %
279,123.000
98.100.000
29.823.000
6.080.000
86 %
£:1'1111 111 11 1, ••• ,11 11 , .1 11 .,1 111111,. " •• • ,11 11 1 11 1111111111 111, . , 11 1111111 "'111 111.1 11" 1'1" • •••• 1 111 111 1"11" ' 1111'11 111 1 1111'11"1 1 11"11' 1"1 1'1' 11 1"'1111 '1 11,1,,1 111 1111 11,. ,1 1, 1111 11 1 11 1111 '11 1 1111 1111 111 1'1'1111 "1 11 1 1111 11" 11 1 1"1 11"111"8
4'h·6
7·8
5·8
5·6
6
6·7
8
8
5·6
6·8
5·6
6·8
6·8
5·5Y~
5·6
6·6
6·7
6·8
6·8
6·8
MONTHLY BUSINESS REVIEW
6
Savings
Deposits
Savings deposits of 91 banks in this district
operating a savings department reflected an
increase of 1.2 per cent on February 28, as
compared to January 31, and were 9.7 per cent greater than
8.11 ...
1111111111 ... 111111111111 ......... 11111111111111 ......... 111111111111111111111111111111 .. 11111111111111.111.111"1.1111. 11 111111111111 .. '111111 .. 111111 ....... 11111111111111111111111111 ............. 111111111111111111 ... 111111111 .... 11 ..... ,11111
§
_~_::
:
on the same date a year ago. There were 24.1,364 savings
accounts carried on the books of these banks at the close of
February as against 24,0,4.93 on January 31 and 226,403 on
February 28, 1926.
NU!~:u:;y 2!~~:!:
Number of
R eport ing Savings
Banks
Depos ito!'s
4*
5, 682
Beaumont .......................... .........
6
51,209
Dallas ............................... _........
12,105
2
El Paso .................................... .
2
14,812
Fort Worth ...............................
8
13,359
Galveston .... ...... ........................ .
12*
65,650
Houston ............... _................... .
6*
28.226
San Antonio ............................ .
4*
23.296
Shreveport ...............................
Waco ............................... _........ ..
3
7,·134
2
Wichita Falls ...................._.... ..
8, 946
All others .................................. .
47*
30,696
SA VINGS DEPOSITS
of
Sa vings
Deposits
$ 2,295, 988
18,685,4 60
4,862,284
5,520,915
9,410,321
26,826,448
18,002,288
10,544 ,863
4,038,096
2,974,595
17,907,880
NU!~~~u:~y !~0~~2t6
Savings
Depos itors
5,24 0
46 ,793
12,965
15,988
12,863
49.731
20,250
21,1 27
7,810
4,204
29,987
of
Sa vings
Deposits
$ 2,227,680
14,498,904
5,070,311
5,206,504
8.784,264
23.796,661
11,877,048
10.551,329
3,788,840
2,1 28,3 56
17,006,319
Inc. or
Dec.
+ 3..
+ 28.9
- 4.1
+ 6.0
+ 7.1
+ 8.6
+ 9.5
- .1
+ 6.6
+ 89.8
+ 5.8
NU!:~a~: 3~'m~~~:
Savings
Depositol's
5.576
50,571
12.032
14,698
13,278
64.969
23.065
23.091
7,447
5.384
80,397
of
Savings
Deposits
$ 2,319,255
18,H1.253
4.789,442
6,616.988
9 ,8 2~,4 8 6
25,174 ,981
12.980,171
10,844,534
4,058,589
2,634,195
17,585 ,048
[!J
::
:'
Inc. or
Dee.
- 1.0
+ 1.5
+ 1.5
- 1.7
+ .9.
+ 2.6
+.6
- 2.8
.5
+12.9
+ 1.8
TotaL..................................
91
241,864
$115,069,128
226,408
$104,936,546
+ 9.7
240,498
$113,688,940
+ 1.2
.Only 3 banks in B eaumont, 11 banks in Houston, 5 banks in San Antonio, 3 banks in Shreveport , and 41 banks in "all other s" repor ted the
number of sa vin gs depositors.
~
[EJ 1.11 •••••••• 11.11111111111111111111111111111111111,.111111111"1111111 1111111111111111111111111111111111111111111111 111 11 11 1111 111111.,111111111111111 11111111111 111111 1111111111'11'1'11111111111111111 111 "'1111 1111111111111 111111111111 1111111111111110
Deposits of
Net demand deposits of member banks in
Member Banks this district shows a further gain of $17,671,000 during the past month and time deposits rose $9,584,000 during the same period. Combined
deposits of these banks amounted to $827,382,000 on February 23 as compared to $800,127,000 on January 26 and
$825,027,000 on February 24" 1926.
m
....
Due principally to the reduction of open market purchases, the total amount of bills held declined from $16,926,623.33 on January 31 to $13,447,382.40 on February
28, distributed as follows:
,.I.III •• ,.,III.,.,llllllllllllIIIIIIIIII111 •• ,11"111111111111 •••• ,.,11111111111111111111111111111111111111111111'8
Member bank collateral notes secured by U . S. Government
obligations .................... .................................................................... $ 1,499,600.00
Rediscounts and all othe.r loans to member banks........................ 2.186,951.65
Open market purch ases (B a nkers' Acceptances ).......................... 9,810.830.75
Tot al bills held ......................................... _........................... .. ........ 18,447,882.40
DEPOSITS OF MEMBER BANKS
Total
Demand
Banks in cities tBanks in cities
Total with a populn- with .. popula.
tion of lesa
tion of over
Time
than 15,000
16,000
- - 171,024 Demandl 45 ,557- - - - -303,850 Time 350,663 126,467
- - - emand Time
1926.............. _ 664,008
:
banks. There were 95 banks borrowing from the Federal
Reserve Bank on February 28 as compared to 84 on January
31 and 99 in February, 1926.
Feb. 24,
March 24, 1926 _ _ ..
April 28, 1926 .............
May 26, 1926 ._ _
June 23, 1926....._ .... _
July 28, 1926 ____
Aug . 25, 1926.._ _
Sept. 22, 1926 ................
Oct. 27, 1926 .... _..........
Nov. 24, 1926 _ __
Dec. 29, 1926 ......._.......
Jan. 26, 1927 ................
F eb. 23, 1927................
687,892
605,846
598,483
588,075
589,74 8
584,463
612,834
626,554
635,704
682,891
638 ,208
650,879
169,159
165,668
165,099
166,827
165.299
165,277
165,782
164,972
165,718
161.603
166,919
176,503
287.084 45,178
~ 7 2 ,389 44,638
45,085
44,987
45,628
45,407
265,618
259,630
262,499
257, 886
275, 780
281.080
287,418
281.721
282,875
290,385
~5.640
42.998
44,194
41 ,290
43.791
44.869
350,808 123,981
883,~66 121,036
120,014
121,890
119.671
119.870
120.092
382,870
328,445
327,249
826,577
337.064
345,474
848.291
350.670
350.338
360,494
1 2 1.97~
121.519
120,213
123,128
131,684
~
:
§
::
::
::
::
::
::
::
[!JIIII.,.IIIIIIIIIIIIIIIII.,IIII •• IIIIIIIIIIIIIIIIIIIII111111111111111111'111111'1"'1'11111111111111111'1111IIIIIIIIII.I[!)
Operations of The demand for Federal Reserve Bank
the Federal Re- credit in this district continued light and
serve Bank
fluctuated within narrow limits during the.
month of February. Standing at $3,763,169
on January 31, borrowings of member banks increased to
$4,037,034 on February 21: and subsequently declined to
$3,636,552 on February 28 and on that date were $126,617
less than at the close of the previous month. Loans to membel' banks showed only a slight change during the first two
weeks of March and on the 15th of the month amounted to
$3,602,754 and on that date were $2,523,566 less than on
the same date in 1926. During the six week period there
was a substantial decline in borrowings by reserve city
banks but there was a gradual expansion in loans to country
The seasonal decline in the circulation of Federal reserve
notes continued in February and on the last day of the
month the actual circulation of these notes, which amounted
to $4,1,882,090, was $1,860,370 less than on January 31 but
was $2,715,480 greater than on the corresponding date of
last year. The reserve 'deposits of member banks increased
from $59,816,933 on January 31 to $64,271,698 on the last
day of February. That the increase of deposits was steady
~hrougho~t the month is evidenced by a gain of $1,717,793
m the dally average deposits during February as compared
to January.
FAILURES
An improvement in the business mortality rate in the
Eleventh Federal Reserve District was noticeable during
F~bruary. Such improve~ent, however, usually occurs at
thIS season due to the passmg of the strain of annual settlements in the opening month of the year. Yet, as compared
to the same month last year both the number of failures and
the indebtedness involved showed a considerable increase.
There were 103 insolvencies during the month with an indebtedness of $2,023,000 as compared to 134, defaults in
January with total liabilities $2,348,320, and 62 failures
in February a year ago whose indebtedness aggregated
$669,997.
PETROLEUM
A further decline was noted in the production of crude oil
in the Eleventh Federal Reserve District during February.
There were 18,94,5,330 barrels of crude oil produced in
February, as compared to 21,668,210 barrels in January,
representing a decline of 22,355 barrels in daily average
production. Field operations slackened but little, there
being 702 completions during February of which 427 were
producers and yielded a flush production of 113,526 barrels
of oil, as compared to 706 completions during January of
which 448 were successful and nett~d 119,260 barrels of
new production.
The daily average yield of Texas fields declined from
7
MONTHLY BUSINESS REVIEW
64.6,025 barrels in January to 623,704. barrels in February,
all fi elds sharing in the decline with the exception of Central-West Texas area. The increase in this area was due
primarily to a furth er gain in total output in Upton County
and renewed activity in the shallow oil fields of Brown
County. As a result of the heavy decline in production in
the Spindletop fi eld, total output and daily average production of the Gulf Coastal area were below that in February. A decline of 1,078,275 barrels in total yield was
registered in the North Texas field, due in part to the falling off in flu sh production. A slight decline was shown in
the daily average yield of oil in the North Louisiana fields
during February, the total output for the month amounting
to 1,481,620 barrels as compared to 1,641,420 !n rrels in
January or a decrease of 34 barrels in daily average.
Sharp reductions in the posted price of
crude oil effective at the principal fields of
this district, occurred during the past 30
days. The price of crude oil (52 gr. and above) in North
and Central Texas and North Louisiana was reduced 39
cents per barrel on February 22, and on March 4, a further
reduction of 36 cents per barrel was announced, which
lowered the price of this grade to $1.95 per barrel. Texas
Coastal crude oil ("Grade 'A' '' ) was reduced 10 cents per
barrel, effective March 7.
Crude Oil
Prices
r::J.,IIIIIIIIIII I I I IIIIIIIIIIIIIIIIJIIIIIIIIIIIIIIIIIIII1 I I I tlllllllllllll l llllllllllllllllllll l lll11111111111111111 11111111111111 11 1111111 111111111111111 11 111111111111111111111111111"'1111111111 1 11111111111,, 1 111111"11111111 11."'IIIIIIIIIIIII.,I.II'1!l
~
OIL PRODUCTION
Nort h T exas
Ce n trnl-West" T;;~~~::::::::: := :::: ::::=::::::::::::::::::::::~:::~~
East-Central T exas .................................................. _.
Thxns Coastal
Southwest Te~;;;;.........:·.........::·...::·.::·.:·.:::·.:·.~.:·.....:::·.::....:....::..:.~..:........
Februnry
Total
Da ily Avg .
6.766. 700
241.276
4.108.050
146.717
1.412.4 40
50.444
4.102.340
146.512
1.085 .1 80
38.756
::
January
Tota l
Da ily Avg.
7.833.975
252.709
3.803.540
122.695
1.686.885
52.770
5.511.970
177.805
1.241 .420
40.046
Jnel'cuBe 01'
Dec.
Inc.
Dec.
Dec.
Dec.
Total
1.078.276
304.51 0
223.445
1.409.630
156.240
Decrease
D!til y Avg.
Dec.
11.484
Inc.
24.022
Dec.
2.326
Dec.
81.293
Dec.
1.290
Total. Thxas ........................ _.............................
North Louis inna .................. _.............................. _......
17.4 68. 710
1.481.620
623.704
52.915
20.026. 790
1.641.420
646.025
62.949
Dec.
Dec.
2.563.080
169.800
Dec.
Dec.
22 .321
34
To'tal. Dis trict... ..............................................._...
18.945 .38 0
676.619
21.668.210
698.974
Dec.
2.722.880
Dec.
22.865
8"'"111111111111111111111111111111111111111111111111111111111111111111111111"11111111 HIIIIIIIIIIIIII IIIIIIIIIIIIIIIIII IJ IIIIIIIIIIIIIIIIIIIIIIIIIIIIIICIIIIIIIII 11111111111111111111111 II 111111111111111 II 11I1I1I1I1I1I1I1I11I1f1l1l1l11l1l11l1l11l11l11!)
~11I11111'IIIIIIIIIJJIIIIII'llttllllllllllll1lllll'llllll 11111111111111111111111111111111111111111111111111111111111111 'm
~
~
FEBR UARY DRILLING RESULTS
==.
=
-
CompleFi eldt ions
North Texas
810
Ccntl'a l-West 'l'e xfls.... 226
I~~~~!ll: t ;:!
G
Producer s
210
146
Gas
W ells
6
2
F a ilInitia l
":_
ures Production
94
23. 652 "
79
62 075 :
;;! :! ;:! ;;:i!!!
I
, II.II.II.III."I.I •• II.II • • II.I . I'IIIIIIIIIIIII'I.II111111111111 1 11 11111111111111 1 1111111111111111 1 111.1.11IIIIIIIIIIIm
accounted for by the short month. The output in February
was 26 per cent below normal production as compared to
23 per cent in January and shipments during the month were
72 per cent of normal pr odu ction as against 73 per cent in
the previous month. Althou gh February orders exceeded
shipments they were considerably below those in the previous month, declining from 87 per cent of normal production in January to 80 per cent in February. Stocks increased
to 8 per cent below normal as compared to 9 per cent below
normal in January. Unfilled orders continued to accumulate and on February 28 totaled 63,809,728 feet on the books
of 53 reporting mills, which compares to 58,616,191 feet
on record at 52 mills at the end of January.
{!] 111 1 111111111 II I 1 JI II 11,. 111111111 1 11111111" 1 1 11111111111111111111111111111111111111 1 1111111" 11111111111 t 1IIIIIIIIIIrn
~=_
CRUDE OIL PRICES
~:.
=
~
Murch 9. March 10.
1927
1926
Tax a. COHstal (Grade .. A .. ) .................... ......_...................$1.80
~ 1. 5 0
g
~
1.n5
· P d cc. fo r Ml\l'ch 9. 192 6 not ava ilable on a comparo.ble basis.
::
§ Nort~2a~~.. C:~Jr~lb.;:~)~~...~.~~ .. ~.~.'..~~...~~.~.i.~.i.~ ~.~...........
:
~
lI:llIlllllll l llllltllllll'"llllllltlllll'I'lll l lllll t l'lll1111111111111111.IIIIIIIIIII'III.llllIllllllltlllllll'l1.lllllr i
!
(Oil Sto.tis ties Compil ed by '1'he Oil Weeltly. Houston. Texa s )
LUMBER
Both production and shipments of lumber at the District's
pine mills de-:: lined in Februar y, the decrc!1se beinG in part
n
llllll1l11111111111 1111ltll1 III 1111111 1 II J1 ItIIlIIlIlIlIlIlHIIIIIIIIIIIII 111111111111111 IIlIlIHlllllllllltlllllllllllffi
~:=i. r;1:~:~~ ~:::~;:;=~.~I~~:~I~L:;T~~I;;';:!i :::t
:=
Or ders ................................................. ......................... 91.958.068
Unf illed orders. F ebr uary 28th .............................. 63.809.728
blormal p roduction ....................................................11 1l.306.189
Stocks. February 28I"h ................... ...........................308.428.200
Norma l s tocks ............................................................ 334.860. 341
Sh ipments below norma l produc tion .................... ~ 0. 64 1.137
Act ua l p roduction bclow norma L ....................... 21.258.740
Orders below normal pl·oducli on ............................ 24.347.121
Stocks below no r mu!.. .............................. ................ 26. 432.H l
•
§
i
feet
feet
f eet
reet
feet
feet -26%
ieet -1S0/0
fect- 20'Yo
f eet - 8%
"
_
[!J I II 1 U 1I11I1I1I11t 1111 1 11 II Ie IItI IIIIIIIH 11I11I11I11I1I1I1I1I11I1ClIIIIIII" 111111111111111111111" 111111111111111111 r:j
CEMENT
A further increase was noted in the produ ction of Port- month a year ago. Stocks continued to increase and at the
land cem(!l1t at Texas mills during February. There were end of February were 3.0 per cent greater than at the close
396,000 barrels of cement produced at these mills during of January. For the two months of the current year, prothe month, as compared to 383,000 barrels in J~nuary and duction of cement increased 7.7 per cent over last year and
393,000 barrels in February of last year. Slllpment~ of
shipments reflected an increase of 5.5 per cent during the
cement showed an increase of 4.7 per cent over the prevIOUS
same period.
month but were 4..5 per cent below shipments in the same
~11"11I1111111111111111111111t1l11111J1I1111111IJIIIIIII'I.11I1I1111 111111111111111111111111111111111111111 U lllll l 1111111111111 1 1 11111111111111111111111111111111111"'111111111111111111111111111111111111111111111111111111111111111111111111111111'"19
~
:
§
~
:
§
PRODUCTION. SHIPM;ENTS. AND STOCKS OF PORTLAND CEMENT (Barrels)
=
P rodUction at Texns Mills ........................
Shipments from Taxa. mills ................. _.
= Stocles at end of mont h at Texas mills._
F ebruary
192 7
896.000
382.000
475.000
F ebrunry
1926
398.000
400.000
495 .000
Inc.
or
Dec.
~ 4:~
-
4.0
J a nU Ary
1927
383.000
aG ·000
·5
~ 61.000
Inc.
or
Dec.
3.4
47
30
.
+
+
T wo Months
1927
1926
779.000
728.000
7~7 .000
708.000
Inc.
"
or:
Dec.
g
7.7
§
6.5
"
::
+
+
m l'IIIIIIIIIIIIIIIIIIII.,IIIIIIIII."I.II •• I.I.'IIIII.1111111.,1.111111111.1.111'11111"11111111111111111111 II I I IIIHIII I I I ••• I.,I 'II I III I IIII " I I IIIIII I II II I I I :I I11111 111 1 1 111111.11 111 1 11111111 111 111.111.111111111111'1'1111111(11111111111111111111111110
MONTHLY BUSINESS REVIEW
8
BUILDING
After increasing in January, the value of building con·
tracts awarded in 13 principal cities of this district declined
in February and was considerably less than in the corres·
ponding month of last year. The aggregate value of per·
mits issued at these centers amounted to $7,54.6,601 as com·
pared to $7,833,029 in January and $9,059,043 in February
a year ago. As compared to the same period last year, the
valuation of contracts awarded during January and Febru·
ary this year reflected a decrease of 18.5 per cent.
I!JII ••• III ••••••• ,IIIIIIII.IIIII.IIIII.IIIIII ••••••• III11.11111111111111111111111111111.1111111111111"11111111111111111111111111 1111111111'1111., •••••• 1111.1111111., •• 111111.111111111111111111111111 •• ,'1'1'1 •••• 11111.IIIIIII.IIIIIIIIIIIIIIIIIIIIIIIIIII!J
BUILDING PERMITS
Two Months
Feb. 1927
Valu.....
tion
No.
:
Amarillo................
Austin _ ........... _
Beaumont _ ....... _
Dallas ....................
El Paso ...•.........•
Fort Worth ........•
Galveston ......._....
Houston ...•..•......
Port Arthur...........
San Antonio ....... .
Shreveport •.•.......
Waco .............•.._._
Wichita Falls ... _...
'Dotal _........_....
8111 .........
Feb. 1926
228
26
177
327
85
264
224
477
107
826
199
33
85
2,508
$ 741,334
40,825
882,064
528,922
20,900
1,460,285
217,084
1,647,048
140,059
669,190
311,350
75,985
811,555
$7,546,601
No.
106
59
150
449
50
401
259
441
127
830
258
86
201
2,862
Valua.tion
$ 372,400
83,887
113,771
1,937,580
34,426
1,850,387
251,120
1,940,183
105,534
1,608,420
340,579
106,160
814,596
$9,059,048
Jan. 1927
Inc. or
Dee.
+ 99.1
- 51.3
+675.3
- 72.7
- 89.3
+
8.1
- 13.6
- 15.1
+ 32.7
- 58.4
8.6
- 28.4
.4
- 16.7
No.
271
27
147
827
49
299
171
517
115
258
205
37
88
2,506
Inc. or
Valu.....
tion
Dee.
$1,022,340
27,150
187,919
412,624
82,485
912,271
586,662
3,213,316
92,904
805,746
210,400
109,035
220.177
$7,883,029
- 27.5
+ 50.4
+369.4
+ 28.2
- 35.7
+ 60.1
- 68.0
- 48.7
+ 50.8
- 16.9
+ 48.0
- 80.8
+268.6
3.7
1927
No.
499
58
824
654
84
563
395
994
222
584
404
70
168
5,014
Valuation
$ 1,763,674
67,975
1,069,983
941,546
58,885
2,372,556
803,746
4,860,364
232,963
1,474,936
521,750
185,020
1,031,782
$15,379,630
1926
No.
185
III
276
792
108
812
472
831
217
659
546
62
324
5,395
Valuation
Inc. or
Dea.
$
701,135
210,295
216,412
3,203,089
173,706
2,772,823
442,636
5,449,726
199,779
3,l71,G36
781,016
150,935
1,898,088
$18,871,276
+151.5
- 67.7
+894.4
- 70.6
- 69.3
- 14.4
+ 81.6
- 10.8
+ 16.6
- 53.5
- 38.2
+ 22 .6
- 26.2
- 18.5 _
11111 .. 111.11111111 .. 1111 ........ 1111111111 ... 11111 ..... 1111 ..... 11 .. 11111111111111111111111111111111 ....... 111 ••• 11 .... 11111 ........................... 11 ...... ... ,I1 ........... I ........ III .. I1I1I1I1I1I1 .... IIIIIIIIIIIIIIIII .. III ......
I1'~
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board
Industrial output increased further in February and was slightly
larger than a year ago, and distribution of commodities by the rail·
roads was Ia'rger than for the corresponding period of any previous
year. The general level of wholesale prices continued to decline and
was in February at the lowest level since the summer of 1924.
PRODUCTION
Production of manufacturers increased in February for the second
consecutive month, and the output of minerals, after declining in
January adva'nced once more in February to the record level reached
last December. Factory production and employment, however, con·
tinued smaller than during the corresponding month of last year.
Production of iron and steel has increased steadily since December
and reports indicate that operations of steel mills in March were at
almost the same high rate as in March, 1926. Automobile production
increased from 234,000 cars in January to 298,000 cars in February
and weekly figures of employment in Detroit factories indicate .some
further Ildditions to production in March, but output has contmued
much smaller than a year ago. Daily average consumption of cotton
by mills in February was larger than in any previous month on reco;d,
but activity of woolen and silk mills decreased as compared WIth
Jllnull'ry. Production of bituminous coal has been maintained in large
volume while that of anthracite has been considerably reduced. The
output 'of building materials was smaller during the first two months
of this year than in the corresponding period of 1926. The value of
building contracts awarded in February was 3 per cent smaller th!l'll
in the same month of last year, but awards for the first three weeks
in March were in approximately the same volume as in 1926. Con·
tracts in Southeastern and Northwestern states have been consider·
ably smaller than, a year ago, while those in the central west have
been much larger.
TRADE
Retail trade showed less than the seasonal decline between J anu·
ary Imd February. Sales of department stores and chain stores were
larger than in February of last year, while those of mail order houses
were smaller. Wholesale firms reported a smaller volume of busi·
ness in February than a year ago, and this decline occurred in
nearly all leading lines. Inventories of department stores increased
in February in anticipation of the usual expansion in spring trade
IlII
of March 25, 1927)
but the growth was less than is customary at this season and at the
end of the month stocks were slightly smaller than a year ago. Stocks
of merchandise carried by wholesale firms also increased in February
but they were generally smaller than in the corresponding... month of
last year. Railroad shipments of commodities have increased stelldily
since January by more than the usual seasonal amount and have
exceeded those for the same period last year, owing to larger ship·
ments of coa'l, of miscellaneous commodities, and of merchandise in
less-than·carload lots.
PRICES
Wholesale prices, according to the index of the Bureau of Labor
Statistics. continued to decline in February. Among non.agricultural
products decreases occurred in the prices of coal, petroleum, iron and
steel, n~n.ferrous metals, and lumber, a·nd the index for non.agricul.
tural pnces as a group was at the lowest post·war level. Prices of
livestock and livestock products and of clothing advanced materially
in February. During th e first three weeks of March there were de.
creases in .prices ~f grai.ns, livestock, sugar, silk, wool, coal, petroleum
and gasolme, while prices of potatoes, pig iron, hides and rubber
advanced.
BANK CREDIT
. Demand for commercial credit a.t member banks in leading cities
IIlcreased seasonally between the mIddle of February and the middle
of March. There was also growth in the volume of funds used in the
security market as indicated by increases in loans to brokers and
dealers in securities. Consequently total loans of the reporting banks
at the end of the period were close to the level of last Autumn.
Financial operations of the U. S. Treasury around the middle of
!Jarch, with disbursements temporarily in excess of receipts, resulted
III a temporary abundance of funds which was reflected at member
banks in leading cities in a growth of deposits, in reduced indebted·
ness at the Reserve Banks, a'ud in increased holdings of securities.
At the Reserve Banks, following changes in holdings of bills and
securities accompan~ing the fi~ancial operations of the Treasury, the
total volume of credIt outsLandlllg on March 23 was somewhat larger
than four weeks earlier. Conditions in the money market in March
were slightly firmer than in February. Rates on prime commercial
paper .advanced. from 4 per cent to 4 1ft per cent and call money was
also hIgher, whIle rates on acccptances declined somewhat.
@FedFRASER