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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)
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Dallas, Texas, April 1, 1933

Volume 18, No.2

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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.

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THE SITUATION AT A GLANCE

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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
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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

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~~rJ;'*~~~~:. : ~U ±Ji =8H =l~ t U 83.9 :
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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

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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.

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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.

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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"

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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

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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 . . ...... . • ..

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33

45

64

= cantalouPCB... . . . . • . . .

54
75
68
75

67
05
85
88

65
76
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80

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80

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g RcnnB (Bnap) .. , . , . .. . . .

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Cabbngc. . . . . . . . . . . . . .

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arrots
Oorn ............ . ..

= C .............•...
~: Q~~~mberB ... . ... ... . .

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: pens (greon) . . . . . . . . • . .
: poPPerB (greon) . . . . . . . .
: So.tatoCB (J riB . . . . . • . .
h)
:

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StPr'~aobh................
'l'.w emCB . .... . .. . ,.
'1'~~ ~toC8. . . . . . . . . . . . .

lllPH . .. .. .... ......

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58
55
50
65
45

~08

52

§

FORT WORTH LIVESTOCK RECEIPTS

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88

78
85
89
66
88
01
48

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(Numher)

§

l'ebruary

72

::

70
68
80
75
50

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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

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: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

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(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:

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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,~ ~! : ,

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~~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

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Otber investments ........•.. .. .... . .... ..
Total earning B88ets.. . .. . . ... .. .. . . . . .. ..
Member bank reserve depoeits . .... . . ......
Federal reserve notes in aotualcirculation.. .

:

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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;;

§

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§
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(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

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§

S

BUILDING PERMITS

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c

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g
5

5

1.

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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.
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~ 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

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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