The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
- .,e OlE a ) , .,t .,- "E MONTHLY 'BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal 'Reserve Agent (Compiled March 15, 1933) ,r ,r ?E ?E PC = 'E ?E Dallas, Texas, April 1, 1933 Volume 18, No.2 = )E This COpy is released for publicat ion in morning papel'S- 'M arch 31 DISTRICT SUMMARY ~III1I1I1II1III1'IIIIIIIItIl .. ItUIIItIlIlIlI.ItI'1I11t11111t111l1l1l1l1l1l1l1l1l1l1l ..... IIIIIIIIIIII .... II .. IIII ........ &; during the past month due to the banking disturbances. Member bank borrowings at the Federal Reserve Bank rose Eleventh Federal Rcaerve Diatriet from $4,024,000 on February 15 to $7,253,000 on March 15, and the actual circulation of Federal reserve notes in= February Change from creased f.rom $35,842,000 to $57,64.5,000 during the same S 1933 January = Bank debita to individual accounta (at 17 period. There was also a large increase in the reserve de~ = cities).......... .. ....................... $400,235,000 - 14 .6% posits of member banks. Between February 8 and March =. Dcpartment storo sales... . . . . .. .. . .. .. . ..... + 2.1% 15, the loans of member banks in selected cities declined = Reservo bank loans to membor banks at end S of month ... .. .. ............ ...... .... .. . 6,117,620 + 22 .6% further, but their investments were increased. The daily • Reserve bank ratio at and of month . . . . . . . . . . 63 .8% + 6.5 polnta :: BUilding ~rmit valuation at larger centers. . . . 1,051,621 + 46 .1 ~ average of combined net demand and time deposits of memS CommcrclBl failures ~numbor).... .. ..... ..... 93 - 6.1 0 ~ Commercialfailures liabilities).. ............ $ 1,665,983 - 1.6~9 ber banks amounted to $607,612,000 in February, as com= 2!! produetion (barre s) . . .. .. .. .. .. .. .. .. .. . 24,686,200 - 0.1 10 E pared with $611,062,000 in January, and $665,682,000 in """"III .. " ............ "' ..................... ~ February, 1932. Subscriptions to the 4 and 41,4 per cent United States Treasury Certificates of Indebtedness, dated Although business and industry in the Eleventh Federal March 15, totaled $47,535,500, against which --a.l.lotments of Reserve District during February was somewhat quiet and $17,536,000 were made. uneven, a strong undertone of confidence has developed during the past ten days and late reports indicate that the While the severe freezes early in February did considerdemand for merchandise has been broadening. The Febru- able damage to small grains, pastures, fruits, and early ary sales of department stores in principal cities were 2 per vegetables, conditions have been very favorable since, and Cent larger than in the previous month, but were still 22 per farming operations have progressed rapidly. General rains C~nt below the co, responding month of 1932. Wholesale over most of the district have left a good season in the r distribution was on a smaller scale than in either January ground and the soil is in excellent condition for spring this year or February last year. Retailers have continued to planting. This work is now weU under way in South Texas ~ollow the policy of. holding stocks to a minimum and buy- and is being extended northward. Ranges and livestock are Ing to cover actual consumer demand, but recently orders reported to be in fair to good condition. have been increasing. Collections were slow during February. Constl'Uction activity showed some improvement during .A further improvement in the business mortality rate in February, the valuation of building permits issued at thiS district occurred during the past month. Both the num- principal cities being 46 per cent above January, but still ?er of commercial failures and the amount of indebtedness 33 per cent lower than a year ago. The production and shipIh"olved were smaller than in either the pl'evious month or ments of cement reflected substantial declines as compared t e corresponding month last year. with both the previous month and the corresponding month Financial statistics reflected some rather wide fluctuations last year. ~ S=. THE SITUATION AT A GLANCE a =. t. ......................................"' .........."'............. BUSINESS A hesitant, waiting attitude was mani- lines were less favorable than in January. During the past fested by many merchants and jobbers ten days there has developed a strong undertone of confiin this district during most of February . dence, and while cautious operations are being continued, .As a consequence, the demand for merchandise at wholesale reports indicate that the demand for merchandise is better. 'vas at a generally low level. With one exception, all five Inventories were held to minimum levels. Decreases in the of the lines from which reports are received registered de- volume of collections during February occurred in all lines creases in sales as compared with both the previous month except farm implements. A further gain of 1.5 per cent, which is smaller than sealind the same month last year, but in the case of three of these lines the reduction from January was partly due to sonal, was reflected in the distribution of dry goods by Seasonal influences. The comparisons with a year ago in all wholesalers in this district during February. Some firms reo This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) rholesale rude 2 MONTHLY BUSINESS REVIEW ported decreases during the month, and a net decline of 13.3 per cent was shown as compared with February, 1932. Business during the first two months of the current year totaled 9.9 per cent less than in the same two months a year ago. Stocks on hand were increased somewhat during the month, but remained materially lower than at this time last year. Collections continued slow. The distribution of groceries through wholesale channels in February was on a 7.7 per cent lower basis than in the preceding month. A decline of 8.7 per cent was shown in total sales as compared with a year ago; yet in certain localities the volume of business was somewhat larger. Retailers are showing little disposition to stock their shelves beyond the requirements of daily business. Wholesale stocks on February 28 were 24.1 per cent less than a year ago, as against 19.7 per cent at the close of January. Total collections reBected a further decline f.rom the previous month. Sales of reporting wholesale hardware firms totaled 7.6 per cent less than in January, and were 11.7 per cent smaller than in February last year. In January and February, combined, they were only 6.5 per cent below the volume of the same two months in 1932. Unfavorable weather conditions resulted in a tendency to hold up orders for some types of merchandise. There was a decline of 7.1 per cent in the amount of collections during February. There was a decline of 15.6 per cent f.rom the previous month in the business of wholesale drug firms in this district during February. Although this reduction 'was largely due to seasonal factors, certain other retarding influences were perceivable. Total sales were 22.5 per cent below the level of the same month last year, this being the largest decrease reported in several months. Collections during February declined by more than the usual seasonal amount. The demand for farm implements during February was 16.3 per cent smaller than in the previous month and 47.8 per cent under that of the same month in 1932. Freezing temperatures in the first part of the month had a damaging effect upon growing crops, and to some extent accounted for the further slowing down of business, Collections showed a slight increase as compared with January. f"''''''~~~~~;;~~'~;'':~~~~~;'';~'~'~~''~:~~';;~';~:';;:''~~~~"""""'f E : § g : : Percentage of inorcaae er deorease inNet Sales Net Sales Stooks Ratio of coUooFeb., 1933 Jon. 1to dote Feb., 1983 tions during Feb. oomparod with compared with oompared with to aoo ounlB and Feb., Jon., snme period Feb., Jon., notes oulBtanding 1982 1988 last yoor 1982 1938 on January 81 : : § : : § ~~rJ;'*~~~~:. : ~U ±Ji =8H =l~ t U 83.9 : ~U _:1 20.0 1 Hardware ........ -11.7 - 7.0 - 0.6 -16.9 + 1.6 _- -: Drugs .. .. ........ -22.6 - 16.0 - 16 .0 - 14.1 - 1.7 :;111"""'1111111111111111111111111111111'"1111111111111111111111111111111111111111,.1111111111I11I11I1I .. 'IIIUIIII 1I11 '!; Retail Notwithstanding fewer business days, and Trade unusually low temperatures early in the month, the February business of depar~ ment stores in leading cities of the Eleventh District eYldenced an increase over that in the preceding month. The comparison with the corresponding month a year ago, hoWever, continued to show a substantial decline. Sales averaged 2.1 per cent greater than those in January, but 22.1 per cent less than in February, 1932. The index of department store sales, which is adjusted for seasonal variations, increased considerably during February, keeping in line with the unseasonable increase in business. The February index stood at 58.0, as against 53.7 in January. Distribution of. merchan· dise during the first two months of the current year was 20.1 per cent less than a year ago. Late reports indicate that business during March witnessed a very encouraging pick-Up toward the middle of the month. Inventories of merchandise held on February 28 showe.d a decline of 20 per cent as compared with a year ago, th.1s reduction being approximately the same as that shown lU January. A seasonal increase of 7.9 per cent was registered over the holdings on January 31. The rate of stock turnow r during the initial two months of 1933 was .4.1, which was the same as that in January and February, 1932. Collections during the past month reflected a small i~ crease over those a month earlier and a year ago. The ratlo of February collections to accounts outstanding on the first day of the month was 30.9 per cent, as against 30.4, per cent in January, and 29.8 per cent in February, 1932. :"11.,I •• lt"""'.,IIIII.,I"IIIII"III.I.,I.'.,I.I'.""',11111111111., ••• """11'11"'11111"11"""'1',,111",1'.11111111111111,,1.111111111111111111111111',11,.1 •• ,111,.,1111111111111111111111111.,1111',11111111 111111'111111111'lllllltlllffllllll~ ~ : BUSINESS OF DEPARTMENT STORES Total onIes (peroentage): DaUas Fort Worth February, 1933, oompared with February, 1982. .... ...... .. .... .... .. ...... .. ... - 24.0 -20.6 February, 1938,eomparedwithJanuary, 1933 ....... .. .. .. ............. ......... +13 .7 +4.7 January lto date, compared with enme period last yoor...... ........ .. .. .. .... .. . - 22.2 - 20.3 Credit onIes (peroentage): - 26.0 b February, 1933, compared with February, 1932..... .... .... .. .. .. .. .... ......... - 26.4 February, 19a8, compared with January, 1933 . . . ........ .. .. .... .... .. .......... +17.2 + 6.3 -24.2 January 1to date, oompared with same period last year. . . . . . .. . . . . . . . . . . . . . . . . . . . -26 .0 Stocks (percentage): -23.9 February, 19a8, compared with February, 1982. . ... .. ........................... - 18.8 February, 1033, oompared with January, 1935. . . . .. .. .. .. .. . .. . .. . . .. . .. . .. . .. . . + 9.0 +16.5 Stook turnover (rate): .24 Rate of stock turnovcr in February, 1032 ............ .......... .. .... .... ...... . . .15 .22 .16 Rate of stook turnoverln February, 1988 ........... .... ... ... ........ .... .... .. . .44 Rate of stock turnover January 1to February 29, 1932 ......... .. .. ..... .. .. .... . .30 Rate of stook turnover January 1to February 28, 1935 ... ... ... ..... ........ .. .. . .41 .84 24.4 32.1 Ratio of February collections to aocounts reocivable outstanding February I, 19S8 .... ... . Indexes of department store onIes: 42.1 48.0 Unadjusted- January, 19S3 .... ... .. .... .. ... ....... .. .. ... ... .. ...... ......... . Unadjusted-February, 19S3 ... ..... .... .... ......... .. ........... ...... .. .. . . 60.0 62.4·· 64 .9 Adjusted- January, 19S3 ... .... .... ..... ........ .... .... ... ..... ... .... .... .. . 49 .0 63 .1·· Adjusted-Febrnary, 1933 ...... ... ..... ... .. ..... ... .. .. .... ................. . 66.8 Indexes of department store stocks: 61.1 Unadjusted-January, 19S3 .......... ... .. .... ....... ........... .. ... .... .... . 38.4 42.9 Unadjusted-February, 19S3 ..... ..... .. ... .. ... .. .... ..... ... .. .... .. .... .. .. . 67.8" A<!iusted-January, 1938 .... .......... .... .. .. ..... ...... .. ... .... .. .. .... .. . . 44.1 69.4 Adjusted-February, 1938 ..................... .... .... ....... ...... .......... . 44.7 60.2" ·Revised. ··Subject to revision. 1 :: Houston - 23 .9 -4.6 - 18.6 -18.4 - 6.6 - 16.2 -12.7 + 6.1 .26 .23 .43 .47 38.5 62.4 62.4 68.9 61.6 42.0 43.4 48.8 46.7 Snn Antonio - 28.1 - 9.0 - 25 .6 - 31.4 -11.4 - 29.0 -38.1 - 2.6 .25 .27 .62 .64 83.7 43 .7· 40.8 48.0' 49.2 31.4· 30.0 34.1· 30.6 All Others - 11.1 -8.6 -12.8 - 16.3 - 2.1 -17.3 -18.1 + 8.2 .16 .18 .33 .37 28.4 Total Distriot - 22.1 +2.1 - 20.1 - 24 .0 + 4.1 - 22.8 -20.0 + 7.0 .21 .21 .41 .41 80.0 46.1 48 .7" 63 .7 68 .0" 42.1' 45.6" 48.4' 47.5" :'11111111111.11111111111111111.1.1.111111111111 •• 1111.11111111111,.111.1,.1111111111.1.11111,.1.,1.1111111.,1,11'11111 •• 1111111111,.111111111111.1.11111111111,.1 •• 1.fI ••• IIIII.III •• IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.IIII.1.1111.,IIII.I.,IIII.III,llllllIlllt MONTHLY BUSINESS REVIEW Co'mmercial Failures The record of business insolvencies in this district during February, as reported by R. G. Dun & Company, was lower than in the previous month and showed a substantial decline from the level of the same month last year. A total of 93 firms :3 defaulted during the month, their liabilities amounting to $1,665,933. There were 98 commercial failures in January, owing $1,693,202; in February, 1932, the number of insolvencies was 121, and the indebtedness involved totaled $2,567,674. AGRICULTURE Crop Conditions The severe freezes during the first half of February caused extensive damage to small grains, fruits, and vegetable crops Lhroughout the district, but the widespread rains and generally favorable temperatures during the past thirty days have been very beneficial and have partially offset the freeze damage. The preparation of the soil for spring planting is being rushed to completion and the soil is in excellent condition due to the pulverization by the freezes and the good ?eason obtaining. There are still a few areas where rainfall IS badly needed. The planting of corn and early vegetable crops is in ,full swing in the southern part of the district nnd is being gradually extended northward. Cotton planting has started in the extreme southern portion of Texas. Small grains throughout the district received a severe setback by the freezes, but that part of the crop which survived has made rapid recovery during the past month due to the moderate temperatures and heavy rains over most areas. A large acreage of oats was killed, but fanners reseeded imIUediately ,and the new crop is up to a good stand and growing rapidly. Commercial vegetables made rapid recovery from the effects of the February freezes and frosts, but the condition of most truck crops on March 1, as reported by the Departlnent of Agriculture, was very low and showed a sharp drop from both thc previous month and the same date a year earlier. The l ow condition fig ures have been reflected in hoth the lowered quality and reduced tonnage of winLer Vegetables marketed. Car lot shipments of cabbage, beets, Carrots, and spinach are running considerably behind a ~ear ago. The following table gives the comparative condilion of principal commercial vegetable crops in Texas: : 11111 ~ g • 1"111.11 11 1111 1 111,.1111 1 111 111 11 1111111 111 111 11 11 111"11111111111 1 111"11111 1 11111 1 1111111111 1 1111111 1 111111" " 1" · CONDITION OF COMMERCIAL TRUCK CROPS IN 'rEXAS ~:. Maroh I , 1993 (por cont) Mnroh 1, 1932 (por cent) Fohrunry 1, 1033 (per cent) "High Plains" section of Texas where moisture is badly needed. Ranges are now greening and with the good season obtaining generally, an abundance of green feed should soon be available with the continuance of warm weather. Livestock have been mending rapidly and have regained much of the flesh lost during the period of low temperatures. The condition of cattle in Texas on March 1, as reported by the Department of Agriculture, was 78 per cent of normal as compared with 81 per cent on February 1, and 82 per cent on March 1, 1932. Sheep and goat ranges dropped from 82 per cent on February 1 to 74 per cent on March 1, the latter figure being 11 points lower than that obtaining a year ago. The condition of cattle on Mru.-ch 1 was reported as 79 per ( cent, which was 3 points lower than a monith earlier, and 1 point below last year. ' During February the condition of sheep declined 5 points and that of goats 6 points; as compared with the same date last year, the March 1 condition of sheep and goaLs was 6 points lower. Changes in the condition of ranges and livestock in New Mexico and Arizona were relatively small during February. The Department of Agriculture reported that the 1932 wool production in Texas reached the largest total on record at 57,105,000 pounds. The increase in production was brought about by the larger number of sheep shorn and the heavier fl eece weight. Production in Arizona and New Mexico declined slightly due to the fewer number shorn. Movements and Prices The Fort Worth receipts of cattle, calves, and sheep in February this year reflected a substantial decline as compared with both the previous month and the corresponding month last year. While the arrivals of. hogs were larger than in January, Lhey were considerably smaller than in February, 1932. Cattle prices were somewhat irregular during the past month and moderate declines were registered in some divisions. Lamb prices, after showing some strength in January, eased off in February and early March. The demand for wethers broadened and prices reflected some improvement. : nocts .. ... .'............. • OroecoU . . ...... . • .. ~~ ~l ~~ 33 45 64 = cantalouPCB... . . . . • . . . 54 75 68 75 67 05 85 88 65 76 '' ~~ 80 g 80 g_ 64 § g RcnnB (Bnap) .. , . , . .. . . . ! Cabbngc. . . . . . . . . . . . . . : : arrots Oorn ............ . .. = C .............•... ~: Q~~~mberB ... . ... ... . . : ~\~~~e.:::: :::: ::: :: :: : pens (greon) . . . . . . . . • . . : poPPerB (greon) . . . . . . . . : So.tatoCB (J riB . . . . . • . . h) : 1 ! StPr'~aobh................ 'l'.w emCB . .... . .. . ,. '1'~~ ~toC8. . . . . . . . . . . . . lllPH . .. .. .... ...... ~~ 58 55 50 65 45 ~08 52 § FORT WORTH LIVESTOCK RECEIPTS ~ § 88 78 85 89 66 88 01 48 EI IIII I .IIIIIII.'I I II I III I I • • IIIIIII I I I I . I I1 • • • III I I ••• •• 1. , I II III I IIIII I IIIII U II II IIIIIIIIIIIIIII III IIIIIIIIIIIIIIIIIII 'g (Numher) § l'ebruary 72 :: 70 68 80 75 50 ~1111'11111111111111111111111111'11111111111'''1'1'111111111.,1.1111111111111'11111111111111111111111111111111111111111111. ~ Cnttlo.. ... ..... . Calves .......... RogB........... Shoop... . ....... February Chango over January 7,733 26,721 37,810 8,602 33,254 58,222 g50 - 6,533 -20,403 16,002 25,208 50,886 ;:,30~8 2~,;;0 2189,~~1 Ohango over ~05n,t7h8a - 8,350 + 1,513 -13,007 ~ ~_ E E ~ ; 11 111 11111 111 111 111 111 11 1 11111 111111111 111111 11 11 11111 1 11111 11 11 1111 1I I IIIIU llll l lllllll llll l tl lIlIlIll lI. II I U.III .Il Il r. :l 111 111 111 111 1 11 • • ••• II • ••• • III I •• • • II •• ll t lll •• • • • •• • 1 11 11 . , 111 1 11111111 11 111 111 1"'. 11111 11 1111 1". , 11111111111 • • • 1 1111': : COMPARATIVE TOP LIVESTOCK PRICES E (Dollars per hundredweight) Litvestock Ranges and livestock in the Eleventh Federal Reserve District received a severe FeL.back by the low temperature during the fir~t half of ebl'uary. Green feed on the ranges and small gram pastures S,ere killed back and livestock suffered heavy shrinkage. Ilnce the middle of February, however, the freeze damage las been partially offset by the warmer weather and the heavy rains in all sections excep t the nor thern half of the .!~,~42 Doef Bteers .........•......•............. , Stocker BtoCrs .. .... •. . .... • . ..... . ...... . Dutoher oow8 ...... , ... . . . ......••..... . . Stooker oows ...... , .. . ...... , ........... . Calves ..... ...... , .. .. . ........•.. ····· . r~~~t:·::::::: : :::::: :.::::::::::::::::: : February 1933 $4.00 4.10 2.50 2.50 5.40 3.00 2.65 5.00 Fehrunry 1932 $5.75 4.25 3.25 3.00 5.25 4.40 3 .75 5.50 January 1083 $5 .00 4.60 3.00 2.00 4.00 3.25 2.50 5.40 : 11111 11 111111111111111111111 11 111111 11 1111111111 11 111111111111111111111111111111 1II1 I1I1I1I U I U IlIlIlIIlIIlIlIl I IlIIIlII r. MONTHLY BUSINESS REVIEW 4 Hog prices held fairly steady around $3.30 during the last half of .February and the first week in March. During the second week, prices jumped to $3.95 but had receded to $3.55 at the middle of the month. FINANCE Operations of the Federal Reserve Bank The shifting of. funds from Eastern centers by member banks in this district during the past month greatly changed the position of the Federal Reserve Bank of Dallas. The reserve deposits of member banks rose from $50,817,000 on February 15 to $76,622,000 on March 15 and during the same period the cash reserves of the Federal Reserve Bank increased from $4.5,981,000 to $82,525,000. While the borrowings of member banks amounted to $7,253,000 on March 15, as compared with $4,024,000 on February 15, they were still $6,767,000 below those on the corresponding date last year. Bills bought in the open market also reflected a large increase, amounting to $3,450,000 on March 15, as against $842,000 a month earlier, and $3,842,000 a year ago. Investments in United States securities were increased slightly during the month. Due to the increased demand for currency incident to the opening of banks following the holiday, Federal reserve notes in actual circulation reflected a large expansion. The total amounted to $57,645,000 on March 15, as compared with $35,84,2,000 on February 15, and $41,271,000 on March 15, 1932. EIIII.IIII ••• I •• IIIIIIIII.I •••• , •• IIIIIIIIIIIIII.I.III11 •••• 111 •• ,.1"11111. , 1'111111111111111111111111111111 t.,.,IIIIIIII: : ~ g ===; .. ==.g =.= a : g CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) Total cash reserves . ...................... Discounts for member banks........ .... .. . Otbor bills discounted ....... . . .•. .... ... .. § ~:I~:8"of;n5;15' ~51aI4:8"0!2;~:5' :~ 5g,~ ~! : , :1 _: ... ~~Is~sf::"'ins~~rt:' o':,'"!i~:::::: : ::::: 4~:~~5~ 2~:~~5! 48,~65~ ~:- 50,647 76,622 57,645 45,232 47,803 41,271 52,873 50,817 35,842 E_ Otber investments ........•.. .. .... . .... .. Total earning B88ets.. . .. . . ... .. .. . . . . .. .. Member bank reserve depoeits . .... . . ...... Federal reserve notes in aotualcirculation.. . : ~'''I''I''I''''''''I''II''I''''''''''UI''If''''''I''''''III''''"''"''IIIIIII .. rtlll''''"1IIIII"IIII"IIIIIIIIIIIIIIII~ Condition of Reports from member banks in selected cities reflected a substantial rise in deMember Banks posits and a moderate increase in investin Selected ments, but a decline in loans between Cities February 8 and March 15. Investments in United States Government securities were increased $1,307,000 and those of other securities rose $745,000. As compared to March 16, 1932, holdings of. United States Government securities were $1,593,600 larger, but other investments were $5,485,000 lower. During the five-week period, loans on securities were reduced $545,000 and there was a recession of $5,867,000 in "all other" loans (largely commercial). Total loans on March 15 were $52,622,000 less than a year ago. While a decline of $4,100,000 in time deposits was reflected between February 8 and March 15, it was more than offset by a substantial rise of $11,364,000 in net demand deposits. Combined deposits were only $15,!o11 ••••••• ,.II •••••••••••• II.I.III.I ... IIII.III •• III.1.1111111111111111111111111 .1 1 1 111'.1111111111111111 ,11 11111111111111~ CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thousands of dollars) United States seouritles owned ........... .• All other stocks, bonds, and securities owned. Loans on securities ... . ..•.. . .••.......... All other loans . . .. ...................... . Total loans ......... ... . . ..... .... ..... . . Net demand depoeits .•..........•.......• Time depoelts ...•............... . .. .• •..• Reservo wi th Fedornl Reserve Bank ... .... . Bills payable and rediscounts with Federal Reserve Bank . ..... . .••.. ... ........... March 15, 1033 $ 06,318 54,511 67,730 146,105 213,034 231,567 126,130 53,180 Maroh 16, 1032 , 04,725 50,996 78,755 187,841 266,696 245,848 127,566 29,484 1,605 3,282 February 8, 1033 S 05,011 53,766 68,284 152,062 220,346 220,203 130,230 28,613 20 717,000 below a year ago, which is the most favorable com· parison shown in nearly two years. The reserves of these banks with the Federal Reserve Bank amounted to $53, 180,000 on March 15, which was $24,567,000 greater than five weeks earlier, and $23,696,000 above those a year ago. Borrowings at the Federal Reserve Bank totaled $1,605,000 on March 15, as compared with $20,000 on February 15, and $3,282,000 on March 15, 1932. Deposits of The daily average of combined net de· mand and time deposits of member banks in this district totaled $607,612,000 duro ing February, which was $3,4.50,000 lower than in the previ· ous month, and $58,070,000 below the same month of 1932. The decline from January was about equally divided be· tween net demand and time deposits, but the recession from a year ago was mostly in net demand deposits. Member Banks ~ IIIIIIIIfIIlIlUIUIIIIIIIIIIIIII""""IIIIIIII"III"IIIIII"IIIIIIIII"IIIIII""""""11I11111111111""II"II"I~ ~ Combined Total Reserve City Banks :1 Country Banks Not demand Time Nct demand Time Net demand Time depoeits dopoeits depoelts depoeits dopoelta depoeita :: ~:: ~~;:, m~::::::. April, 1032..... May, E June, : July, E:_ Aug., Sept., : Oct., : Nov., :: Dec., § Jnn., Feb., .: ~ DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) 1 : ~ 1932...... 1932.. .. .. 1032...... 1932. ..... 1032..... . 1982. .. ... 1032..... . 1082 . ..... 1933.... . . 1933 .. .... $m:m 'm:m $m:m 445,650 434,865 422,504 421,727 400,254 413,201 413,100 421,165 420,762 416,655 415,200 191,203 100,729 189,066 186,905 187,008 187,040 180,716 103,246 192,266 194,407 102,412 216,649 212,117 207,155 200,225 201,130 202,121 200,682 264,361 202,013 201,437 100,307 ~ ;: $m:~~~ $~~:~~~ $~f:~~~ ~: : 115,732 228,401 75,561 116,872 115,634 114,605 114,532 113,037 116,186 116,816 117,465 110,215 118,766 222,748 216,480 212,502 208,124 211,170 212,608 216,804 217,849 215,218 216,803 75,357 73,432 72,400 73,376 73,103 73,530 76,480 74,801 75,102 73,656 ;: : E:. : : :: •• :~ ~""IIIII"IIII""IIIIIIIIIIIII"I"IIIIIIIIIIIIIIIIIIII1""IIIIII"I1I1"I'"'II'"III"""IIIIII""IIII'''IIIJlIIII~ Debits to While a seasonal reduction of 14.6 per cent was shown in aggregate charges to Accounts individual accounts during February. at banks in leading centers in this district, there was a slightly more favorable comparison with the same month a year ago than was recorded in January. The volume of debits during the month amounted to $400,235;j 000, as against $468,867,000 in the preceding month, an $504,,572,000 in February last year. At Austin, Texas, an increase over both comparative months was reported. Individual ~1111 111111111'1111111"'IIIIIIIIIIIIIIIIIIIIIIIIIII" 111""'1'1111111111111'1111111111111111111111111111111111.11111 111 'a : : E E DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) § : Abilene......... Austin.......... Beaumont....... Corsioana.... ... Dallas. .•... .... EI Paso. ........ Fort Wortb...... Galveston....... Houston ... ... . .. Port Arthur. . . . . Rcewell ......... San Antonio. ... . Shreveport. ..... Texarkana·...... 1;~;~ _- : Fcbruary 1038 $ 4,155 17,027 11,704 2,083 109,307 13,326 39,084 15,025 101,838 3,501 1,530 85,807 18,860 4,657 February 1032 $ 4,010 16,108 17,008 2,712 130,356 19,088 50,644 25,013 116,400 5,269 1,777 47,405 23,307 6,544 Percentago change over year -15.4 + 5.7 -31.2 -23.2 -21.5 -30.2 -21.0 - 30 .0 -12.5 - 33.6 -13 .0 - 25 .7 - 10.4 -28.8 January 1033 $ 4,663 14,403 14,003 2,756 122,484 14,286 ~J,045 21,587 124,085 4,464 2,130 47,237 21,477 5,364 S Peroentago chango over month - 10.0 +17.5 -16.4 : -24.~ -10 .7 - 6.7 - 4.7 -30.4 -18.5 -21. 6 - 28.2 -25.3 -12.2 -13.2 ~!~ "~:~ =~! . i!~ ~ ·Inoludes the figures of two banks in Texarkana, Arkansas, located In the Eighth Distriot. .: f.'IIIIIII.I •• I ••••• IIIII •••• III ••• I ••••••••••••••••• I ••••••• 1.... 1111.111 ... 111 •• 111., ....... 11111111 •• ,.,.11 •• ,1 ' •• 1111Ir. MONTHLY BUSINESS REVIEW Acceptance The volume of acceptances executed by accepting banks in the Eleventh District and outstanding on February 28 amounted to $910,500, which compares with $796,481 a month earlier, and $2,750,908 a year ago. The up-turn during the Illonth was attributable to an increase in the amount of acceptances executed against the domestic shipment and storage of goods. Acceptances based on import and export transactions were reduced from $125,910 on January 31 to $111,186 at the close of the subsequent month. Market !f: . ' ........"'........"'.."'.......... ' .. .. A reduction of 1.2 per cent was shown during February in the amount of savings deposits on record at 132 reporting banks in the Eleventh Federal Reserve District. On the last day of the month the total amounted to $131,526,624, as compared with $133,14.2,64.6 on January 31, and $134,847,156 on February 28 last year. At six cities there were increases over a year ago, and four cities registered gains over the previous month. '~~~: ""~~':~~ ~~:~~~: ~;;~~ ~~~:'::.~~: ~~;~ .. ~ti:::n~:::: : :::::::::::: Ii~. Savings Deposits .... 65,275 l: 22,040,228 ..... 00,140 22,994,577 I 111 ti ill ...... - 1.5 1:11 Total.. . . ........... 132 304,824 $131,526,624 312,578 ua4,847,150 - 2.5 ·Only 7 banks in Dallas, 9 in Houston, 7 in San Antonio, and 71 in "All others" roported tho numbor of oavings dopositors. ':§ .... 65,409 23,023,590 304,805 $138,142,046 f~ :11 .."'.. -1. 7 II l 5 -1.2 = SIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111111111 •• 1""111111111111111111111111111111111111'" •••• 1.1.1111111111111111 ••• 111.1111111111111.111111'111111111 111 1'111 11 111 111111111111 11 1111111 11111 1111 "I. "". I ••••••••••• , ••• I ••• I •••• I ••• ·111111 "1,1",1'11.1'1""1",1,11111,.,.,111111,1,.,1,1,1,.""""1"',,',,1,.,,1,11'11,1"""1""11.,.,.,11.,""1.,1,11",,'.,1, •• 1,1,,,,1.,1,1,.,1,.,,'1,1,1,1,1,11111111, •• ,1,1"'.,1'1"1.'11'111'.".,.',""'1,.'".II •• ,.,I".,' ••• '•• ,I'.'.U" ~ J MARCH DISCOUNT RATES E :: E Provailing ratoo: ! E i :: :: : S = = § :: :: I I 111 111111111111111111,11111111111.111111111111111111111,111111 .... 1111 .... 11111 ...... ,11.1111111111111111111.11111111111 ... 1111 . ............ 1111 .. 11111 .......... 1111 .. 111111111111 .... 1111111111111111111 11'" 111111111111111111111.11111111111 .. 11111111 ..;;' INDUSTRY Cot'fJonseea Products The operations of cottonseed oil mills were rather irregular during the past month. The receipts of seed at both Texas and all United States mills reflected the usual seasonal re?ession, and were less than in February, 1932, while cru'shgS were unseasonably larger than a month earlier. At eXas ~lls the amount of cottonseed crushed was above that a year ago. The production of cottonseed oil and hulls at local establishments was also greater than that in the preceding month, while the output of cake and meal, and i ~111'1'11'.III'I"III"IIIII.tll'lltll"II'I"'I""11 1,1"111., •• ",111"',1,'111 ••• 1 '1,.'1,,.111111.1.111.,1,1,., •• 1 -'; •• •• § ~ STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS E ~ ~ ~ : Toxas Unltod Statoo August 1 to Fobruary 28 August 1 to February 28 This season Last SOnBon This soason Last scason ~ Cottonseed rocoivod at mills § C \tons) ...... "............ . 1,342,759 1,557,887 4,119,574 4,980,092 § COttonseod orushod (tons)..... 1,102,098 1,280,809 3,449,450 4,074,743 E 0 tonscod on hand Fob. 28 E. Ccr(~tdoonsO)':I 'P'r'od"u' c·c·d"(·p·o·u·n·d·s·)·.·. '. 349,870,177 381,890,3571,007,115,7071,274,510,016 355,329 290,237 909,398 921,721 § 'fl llo and moal produced (tons) . 535,884 001,502 1,555,174 1,820,169 t'u s produccd (tons). . . . ..... 842,259 369,967 970,431 1,148,606 § lhtcrs produoed (running E St (b~les)" .. " .......... "" 137,821 165,905 543,554 047,822 i gr~d~ ~l t.:'o~dn:st ~~:. . . . .. . i Iiano and meal..(tons)...... .. .. • t'\~~tons) .. .. .. .. .. .. .. 38,057,033 81,483 64,774 88,954 30,038,940 110,502,009 ~~',~~ 332,024 90,055 146,330 290,345 89,609,470 m', ~~ 313,401 (running bales) .... " ,, : ... 11,11111".,11 •••• 1.111,11.11, •• 1,1".1111111111111,1.11 •• 11 •• 1111111, •• 11 •• 11,.1""111 •• ,.111 ••• ,1, ••••• III •• ,I,.~. 1111, § In linters was slightly smaller. The February production of all products at these mills was greater than in the corresponding month last year. On the other hand, the output of products at all United States mills was greater than a month earlier, contrary to the seasonal trend, but continued smaller than a year ago. Operations during the current season remained below those in the 1931-32 season. Supplies of cot· tonseed on hand at the close of February were much smaller than a month earlier, but were again larger than a year ago at both Texas and American mills. Stocks of crude oil showed a further increase over those held a month earlier, and exceeded the holdings on February 29, 1932, by a wide margin. Textile Milling Despite the fact that total consumption of cotton during February was less than that of the previous month and the corre· sponding month last year, operations of textile mills in the United States remained on the advanced scale which has been in evidence for several months. The daily average con· sumption of cotton was actually greater in February than in either the opening month of 1933 or February, 1932. There were 441,663 bales of cotton consumed during the 28 days of February, as compared with 471,202 bales in the 31 days of January, and 451,239 bales during February, 1932, which 6 MONTHLY BUSINESS REVIEW was composed of 29 days. Consumption during the current season continued appreciably above that in the previous season, being 5.7 per cent greater for the seven-month period. Stocks of cotton at consuming establishments on February 28 showed a further decline from those a month earlier and a year ago. r"""""""""""'~'~;;~~::~~;~;~~'~;~~;'~;:;~~~~;"''''''''''''''''""""r ~ ~ .: ~~ : : Fobruary Fobruary : 10a3 1032 370,607 366,601 Cotton-growing states: Cotton conaumoo... . . . .. . . . On hand February 28 inConauming establishments. Publio storago and comprOBBes .. ..... .. . .....• Unitod States: Cotton conaumoo.... . ..... . On hand February 28 iaConauming establishments. Publio storage 8nd comprOBBes. . . . . . . . . . . . . . . . ~ : 2,721,667 1,155,987 451,280 : : 2,521,642 1,307,300 8,882,061 441,663 : August 1 to Fobruary 28 This ScaBon Last scason 9,008,175 8,253,140 3,076,082 1,441,641 9,510,820 ~'I"I I"I"IIIIIII"II"IIIIIII'I"I""""IIIII"I1""IIIIIIIII"I"IIII'II"11I1IIIIIIIIIIIIII"IIIIIII"IIIIIIIIIIIII~ The exports of cotton during February from the ports of Houston and Galveston were seasonally smaller than in the pre,ceding month, and while a marked decline was sho,wn as compared with the corresponding month last year, it will be recalled that shipments during February, 1932, were unusually large. During the seven months o.f the current season the combined shipments from both ports aggregated 3,108,561 bales, as compared with last season's total of 3,690,472 bales. The customary seasonal decline was recorded during February in the receipts of cotton at both concentration points. Stocks at the close of February were less than those on January 31 at both Houston and Galveston, and at the latter port they were less than on February 29, 1932. Cotton 41,000 500 748,685 ; 2 ;0 0000 :"5 50 48,500 2 000 813:367 _:~ _ : : Total. ... '" .... . .. .. .. .. .... .. .. .... .. . 806,185 881,367 § ~11""""'I'IIIIIII"IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII"1I1I1I111I1I1I111I1IIIII"IIII'IIIII"IIIIIIII"IIIII'''"III~' !.',IIIIIIIIIIIIIIIIIIIIIIIII,IIIIIII,.,III"'.IIIIIII'IIIII.IIIIII,II.,11.,.,1,1,111,1,,1111,1111 ••• 11 •• , •• 1 ••• ,.11,.11 ,,11 ': 1 : . ~1;:ONM~'''mITSF~:lHFi;OR;i~~~~I: _ Stocks, February 28, ..... , . . . 1,805,086 1,540,453 r::' • • IIIII •••• II.II.fllIlIlIlIlIl.IIIIIIIIIIIIIII.IIIIII.II •••• ,IIIIIIII •• 1I1I1I1I1I1I1I.,IIIIIIIIIIIIII •• IIII.,IIIIII.,.IIIr. :::_~IIII""""II"IIIIIIIIIIIIIIIIIIIIII"""IIII"IIII .',',.1 •• '"11"1111.,111111'.11.,1,.,.,111.1111111,,., •• 11.,111 •• ::::_~ :~ :i~ I 1,634,344 0,370,990 ;93:,.5530000 Feb. 20, § E COTTON CONSUMED AND ON HAND ~ : For Great Britain ............................ , .. , . .. . For Franco .... , .. , . .................... ........ . ... . For otherforeign ports .. ... .................. , . .. . . . .. For coastwise ports.. . .. .. .. .. . .. . .. . .. .. .. . .. . .. .. .. . In eomprOBBes and depots. . . . .. ...... .. .. .. ..... .. .. .. :: :: ~'"I"' I1I1I1II1I1I1"II"II"IIIIIIIII""""IIIIIII"U""IIIIIIIIIIIIIIIIIIIIIIIIIIII'1111I1I1111111"1111111111'1"~ § Feb. 28, ~ The consumption of cotton and the production of cloth at cotton mills located in Texas were greater than in January, the increase being contrary to the usual trend at that season. The comparison with the like month of 1932, however, continued smaller. Orders for finished products on hand at the close of February were also greater than a month earlier, but smaller than a year ?go. Stocks of products held on February 28 were greater than those a month earlier, or a year ago. ; ~~ : :: ~ SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTION AT ALL UNITED STATES PORT8-(Bales) August 1 to February 28 This ScaBon Last SoBBen i ~;:,4··" ~~m : :m~! ! Receipts .. ..... . .. . ......... ,., ... ... , ......... , .. , .. Exports: United Kingdom ............... .... ......... 7,220,885 982,164 8,386,010 861,868 All otber countries .... . ... , . .. . .. . . . . .... ... 385,518 Total foreign ports , . , .. .. .. .. .. .. .. . .. .. .. .. 5,596,736 Stocks at all United States ports, February 28 ... , .. ,., ., 4,586,086 1,106,150 5 025,306 b46,155 ,. 111,1,1,111,1"",.,1".1'.,1""11"""111,1,1' •• 1"1."11"','1"' 1,1,.,1'1" •••• ".1',,1'.,.,1'11.,'"1, •• : : ~ ,."".1."· Movements Shipments of cotton from all United States ports during the past month also witnessed a large seasonal decline. There were 557,022 bales exported during February, as against 793,666 bales in January, and 970,419 bales in February, 1932. During the first seven months of, the present season total exports of cotton were 5.5 per cent less than those in the same period last season. All of the heavy importers of American cotton reduced their takings considerably during February, which accounts for the seasonal reduction, while the decline from a year ago is attributable largely to the smaller importations of Great Britain, Germany, Jap an, and China. ~111'11111111'111'11'111111"I'IIII'IIIII'111111111111 11111111111111',11.,1,.,1.1.11,1,1,111111111111.11"'"I.,.,.IIIIII'E E COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON § ~~~ : g :: § February t:r:::. . ::::::::::::::::: ~ g : February 1038 1032 08,560 214,720 August 1 to February 28 This scaBon Last ScaBon 1,753,057 2,085,475 :: g § LI~: I~: I~:~:I~:~I1~ I;:"':"I:"I:"I:I I I : : ~':~I I I I :~: ~I:~I I I I~'I~ ~: I~ I I I1~'I!~'~:~ ~'I I . I. SPOT COTTON PRICES-(Middling basis) (Cents pcr pound) February, 10a3 High Low New York ......... . .. . .. ", ..... . ... , . . Now Orlcana ............. .. , ............ . Dallas ......... ............ ....... , ... .. Houston .......... . .. , .. ,.,', .. ..... ... . Galveston . . ........... .. .... , .. , . .. .. . . . 6.15 6.07 5.65 6.00 6.00 5.00 5.76 5.40 5.70 5.80 March 16, 1033 6.85 6.80 6.40 6.60 6.05 :11111., ..... 11.11111111 ...... 11,111111.,11111.1111111111111111.1111111.1111"111111111111111111111111 •• 111.1111.1111.11" " Petroleum The total output of crude oil in this district during February, which amounted to 24,686,200 barrels, was only 18,500 barrels less than in the previous month, and there was a reduction of 1,190,500 barrels from a year ago, as compared with a like decrease of 3,631,850 barrels in January. Sizable gains over the I;>receding month were registered in East Texas and New MeXICO. Activity in drilling continued to decline while the nUJIlhe r of. failures reported during the month showed a furth~l' increase. There were 352 producing wells complete~ 1:1 February, as against 452 in January, and their combIne flush production amounted to 1,511,614 barrels, as Corn!"I111.,., •• tllll.III1"IIIIIIII •• lIlfllllllltllIlllIlI.IIIIIII"'"lIlItll.II'.1I.1I1.lllltll •• ,llfllIlIlIlIlI.III.II"lflla : : = OIL PRODUOTION- (Barrcls) February, 1033 Total Daily Avg. ; : Inorease or decronsc over January, 1033 Total Daily Avg. North Toxas.. .. .. . . . . ..• . . . . 2,515,800 Contral West Texas..... .. .. . . 5,132,400 East Central Texas...... .... . 10,000,600 Toxas Coastal.... .. ........ .. 3,668,000 South Toxas.. .. .... ......... 1,387,400 89,850 183,300 360,700 131,000 49,550 - 309,850 - 582,850 +1,444,250 - 422,450 - 100,500 Total Texas. . . . ..•.... 22,803,200 New Moxico... .............. 1,038,800 North Louisiana, .. ,......... . 844,200 814,400 37,100 30,150 + - 11,400 61,650 68,750 Total Distriot.......... 24,686, 200 881,050 - 18,500 - 1,300 + 550 +81,40g 05 - 1,350 ~ : ; : : : i § +78,445 + 5,570 i_ ~ ; +84,724 ; 1111'11"1'1'1""""1'1'1'111111'1111111"""'11111"'1"1111"11"'11""'1'111111111111111111'11111'11"11.llllllllii MONTHLY BUSINESS REVIEW pared with 2,235,531 barrels in the earlier month. 1... 111111111111 .... 111111111111 .. 111111111 .... 11111111111111 .. 111111 .... 11111111111111tllllltllllll'''''II,,,,,,,,,,"'II!!! § : Daily yield in Texas during the month averaged 814,400 barrels, which was 78,44 5 barrels higher than in January, but 12,378 barrels below February last year. North Texas, South Texas, and the Gulf Coast showed further reductions from the preceding month. With the exception of the latter area, all major divisions of the State recorded declines from a year ago. Daily production in New Mexico increased 5,579 barrels over the January average, and a gain of 700 barrels occurred in North Louisiana. f'IlIIIlIlIl'.IIUIIIIIIUUUUIIIIIII.II.,llIlIlIlIlIlIlIlIlIlllIlllIfllIlIlIllIlllIlIIIIIU.,IIIIIIIIIIIIIIIIIIII.IIl1 g ;:~ ~: CRUDE OIL PRICES Maroh 10. S Maroh 8, ~ E $ .62 $ .86· E 5 ~ S Texas Coastal (34 gr. and ahove). . . .... . . . .. . ... . . .. .. . E North Texas (40 s r. and abovel.. .... .. .. ...... .. . .... . § North Louisiana (40 gr. nnd above) . .... . .... . .. ... . . ... · Prioo paid for oil, 40 gr. and ahove. :.: .62 .62 .73 .86 ::E.' _ "..1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111'"'111. 11111111 ~ 7 § Produoers 24 27 172 33 84 Gas Wells 2 3 1 10 1 FaIIurea 63 18 18 43 23 Total Texas.. • • . . . .. New Mexioo .. ............. North Louisiana . .......... 512 8 17 340 6 6 17 1 155 2 10 1,468,000 40,654 2,060 Fobruary totals, distriot. . . . . 587 628 352 452 18 16 167 155 1,511,614 2,235,531 North Texas .. ............. E Central Weat Texns.. . .. . .. . • East Central Texas .. ... .... S South Tel as.. .. .. . . .. .. . . . Telas Coastal.. .. .. . .. .. .. . a E • ~ : : Completions 79 48 101 86 108 E ~ = ~ § FEBRUARY DRILLING RESULTS :: $ January totals, distriot..... . Inilial ; Produotlon ;; 1,647 3,046;; 1,312,956 ' 10,9S7 E 139,415;; § = § 9 a~ : ~""""""II11""'I"I""""""'""'''''III''''''''''''III'''''''''''''''''''''III''''''III'''''"""ll1l1l11i (Oilstatisti08 oompiled by 'rhe Oil Weekly. Houston, Texas) There was a substantial increase in the valuation of building permits issued in February at principal cities in this district. The total amounted to $1,051,521, which is 46.1 per cent larger than the volume of the previous month. While there was a decline of. 32.9 per cent from the corresponding month a year ago, this is the most favorable comparison shown in several months. Building 1111111111111111111111111111"1.111111111111111.11111111"11111111111111111111111111111111111111.111'1111111111111111.11111.,11111111111111111.,1'11111111111111,111111111111111111.1111111111111.111111111'11111,111111 IIIIIIIIIIIIIIIIII'I'III'IIIII~' § S BUILDING PERMITS I I ~ :: ~ ~ ~ c c E ; = § g 5 5 1. ~ III1IIIIIIII1111111I1111I111111111111111111111111111111111111111,,1111111111111111111 11 11111111111111'.1.111.1IIIIIItlllllllllllllllllllllllllllll111111111111111111111111111111111111111'1111111111"11111111"'1111111111111111111.1111111.11111111111111r. Cement Rather substantial declines were reflected in both the production and shipments of Portland cement during February at mills in Texas. Total OUtput reached a new low of 197,000 barrels, being 22.7 per Cent less than the previous month, and 29.6 per cent under a year ago,. Shipments aggregated 203,000 barrels, as compared with 285,000 barrels in January, and 256,000 bal'l'els In February last year. Inventories at the close of the month, thich totaled 639,000 bal'l'els, were reduced 1.1 per cent l'om January 31, and 24.6 per cent from a year ago. While th~ combined January and February produ.ction at Texas lniUs Was 26.9 per cent smaller than in the same two months in 1932, shipments reflected a decrease amounting to only 1.8 per cent. UIIIIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIIIIIIIIIIIIIII,II1111111111'11111111111111111111111111111111111111111'1 'IIIIIIIIIII'~ ~ PRODUCTION, mpM~;:~~~~r:~~ :;: Produotion at Toxas miUs . ... . Shipments from 'felns mills.... Stooks at end of month at Toxas milia...... .. .... .. .. .. . ... 107 203 -22 .7 - 20.6 -28.8 -20. 7 630 452 488 I:,,:: - 26 .0 - 1.8 - 1.1 -24.6 1,111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIII.;: SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board as of March 25, 1988) th The Course of. business in the latter part of February and PRODUCTION AND E, PLOYMENT M e first half of March was largely influenced by the deVelopment of a crisis in banking, culminating in the procla?ab?n on March 6 of a national ban~ing holid.ay .by ~he reSident of the United States. ProductIOn and distributIOn o· ~ornmodities declined by a substantial amount during this Period, hut showed some increase after banking operations \vel'e resumed in the middle of March. Volume of output at factories and mines, which usually increases at this season, showed little change from January to February, and declined considerably in the first half of March. In the steel and automobile industries output de· creased between the middle of February and the middle of March; subsequently some of the automobile plants, which had been closed, resumed operations, while activity at steel 8 MONTHLY BUSINESS REVIEW posits of these banks declined by $1,306,000,000 during the month, and their time deposits by $360,000,000. In order to meet these withdrawals the banks reduced their loans by $539,000,000 partly through the sale of acceptances to the Federal reserve banks, and their investments by $363,000,000. They also increased considerably their borrowings at the Reserve banks. March figures for member banks are incomplete. At the Federal reserve banks the banking crisis manifested itself between February 1 and March 4 in a domestic demand for $1,833,000,000 of. currency, including about $300,000,000 of gold and gold certificates and in a foreign demand for about $300,000,000 of gold. As a conseDISTRIBUTION quence, the reserve ratio of the Federal reserve banks deFreight traffic, which usually increases at this season, clined from 65.6 per cent to 45.0 per cent. This reflected a showed little change from January to February, on a daily loss of $655,000,000 in reserves and an increase of $1,4.36,average basis, and declined considerably in the first two 000,000 in Federal reserve note circulation, offset in part weeks of March. Department store sales in the country as a by a decrease of $486,000,000 in deposit liabilities. Between whole were at about the same rate in February as in January, March 4 and March 22, there was a return flow to the rebut were substantially smaller in areas affected by suspen- serve banks of $558,000,000 of gold coin and gold certifision of banking operations; early in March sales were sharp- cates and of $319,000,000 of other currency, and the reserve ly reduced but with the reopening of banks showed some ratio advanced to 55.5 per cent. Discounts for member increase. banks, which had increased to $1,432,000,000 by March 4, declined to $671,000,000 on March 22. Money rates in the WHOLESALE PRICES Wholesale commodity prices declined somewhat further open market advanced during the banking crisis, and at the in February. In the early part of March the commodity resumption of business after the banking holiday, rates exchanges were closed; when they reopened on March 15 were at considerably higher levels than those prevailing oIl ( and 16, prices of grains, cotton, silk, non-ferrous metals, March 3. Subsequently, rates declined as more funds became hides, and sugar were substantially abo:ve those prevailing available to the market. On March 3, the discount rate of r at the beginning of the month; subsequently, prices of many the Federal Reserve Bank of New York was raised from 2¥1l to 3V2 per cent, and on March 4 there was a similar increase of these commodities declined somewhat. at the Federal Reserve Bank of Chicago. The New York BANK CREDIT Reserve Bank's buying rate on bills was raised by successive During February member banks in leading cities were steps from 1h of 1 per cent on February 26 for bills of the subjected to withdrawals of deposits on a large scale, re- shorter maturities, to 314 per cent on March 3. On March 13 flecting in part withdrawals of balances by interior banks the rate for these maturities was raised to 3V2 per cent; from their city correspondents and in part withdrawals of subsequently, the rate was reduced and on March 22 was currency by the public. As a consequence, net demand de- 2 per cent. mills showed little change. In February, output at cotton and woolen mills continued at the level prevailing in January, while at silk mills activity declined. Shoe production increased by more than the usual seasonal amount. Reports from important industrial states indicate that factory employment increased between the middle of January and the middle of February as is usual at this season. Construction contracts awarded to March 15, as reported by the F. W. Dodge Corporation, indicate that for the first quarter of the year the total value of contracts will show a considerable decline from the fourth quarter of 1932. I
