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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, 1934) Dallas, Texas, Apri11, 1934 Volume 19, No.2 """-- This COpy is released for publication in morning papers- Mar. 30 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Foderal Reserve District --------------~~~~--~--------.--------Change from January February 1934 ---~~-------------------I---------I--------- n~~h:ebits to individual acoounts (at Dc 17 ) .... .... . .. .. ........ ... . .. ...... . . n~artment store sales .. ........ .. . . .. ... .. . orrve bank loans to mcmber banks at ond ~ month .. . . ... ....... ..... . . . ... . . .. .. . nui~.vo bank ratio at end of month .. . ...•.. . co~ng permit valuation at larger centors ... . Ccm cro!al failures (numbor) ... . ......... .. . Oil m"J01al failures (liabilities) ............. . ~ uotion (barrels) .. ... .... .. .... .. .. . . $513.474,000 - 63,334 60.7% 696,642 26 $ 366,937 27,384,000 - + 9.1% 5.2% 73 .7% ~ u~ pOints - 3.7 - 27.0 - 7 .6 0 A. betterment in the position of the agricultural and live- stOck'In d ' and the mamtenance . . demand f or III ustnes of an actIve Ii' eJchandise were important developments in the El~venth sho eral Reserve District during the past month. DespIte the tho rt month, February sales of department stores exceeded Se of the previous month by 5 per cent and were 35 per ~elt larger than in the corresponding period of 1933. The f 0 Ullle of merchandise distribution at wholesale compared y with that in January and sales in every reporting I ~vorabl Ine ~Xceeded those of a year " . The ago byd a WI e margm. ~~Wlng volume of wholesale distribution represe~ts ~argely expanding consumer demand but some dlstnbutors report that forward orders are being received. Collections ~enerally held up well for this season of ~he ~ear: T~le . ulllber and liabilities of commercial failures m thIS dlstnct in February showed a further decline' as compared with the P . the same IIIrev'IOUS month and were materially smal 1er than m b Onth last year. While debits to individual accounts at i;nks in principal cities were seasonally 9 per cent less th~n 1" bJanuary, they were 28 per cent in excess of those m e rUary, 1933. d' M?isture conditions throughout the major portion of the 181rIct were improved by the heavy rains in February and early March. The soil in most areas is in good condition for the cOI?pletion of land preparati.on and for spring planting operatIOns, and farmers are makmg good progress with this wo~k. Ranges are respond.ing to the increased supply of mOIsture, and, range vegetatIOn has begun to green. Nevertheless, there is a large area in the western portion of the district where rainfall has been negligible and conditions are be~oming. cri.tical: Heavy ~ain~ are needed immediately to relIeve thIS SItuatIOn. Consldermg the poor condition of the ranges, livestock have come through the winter in fairly good condition and are expected to mend rapidly during the spring. Trading activity on the ranges has increased at firm to higher prices and the trend of prices at market centers continued upward. The financial situation was characterized by a further growth in the deposits of member banks and an increase in reserve deposits. at the Federal Rese~ve Bank. The daily average of combmed net demand and tIme deposits of member banks rose to $728,463,000 in February, which was $30,340,000 greater than in the previous month, and $120,851,000 larger than in February last year. The reserves of these banks with the Federal Reserve Bank totaled $126427,000 on March 15, as compared with $110,622,000 ~ month earlier, and $76,622,000 on the corresponding date in 1933. Loans of member banks in selected cities reflected a seasonal decline between February 7 and March 7, but investments showed a further large increase. The return flow of Federal reserve currency from circulation continued during the past month, the total of $46,024,,000 in actual circulation on March 15 being $4.,138,000 less than on February 15, and $11,621,000 below that on March 15, 1933. Construction activity in this district during February con!inued at a. lo.w le~e!. The valuation of building permits Issued at prmCIpal CItIes was 8 ~er cent less than in January, and 34 per cent smaller than m the corresponding month last year. BUSINESS ~holesale Business at wholesale in the Eleventh expansion as compared with February, 1933, was reflected District was generally well sustained dur- the increases ranging from 35.2 per cent in the case of drug~ a . ing February. While only one line showed to 335.3 per cent in the case of farm implements. A further r~ Increase over the previous month, there were two that improvement in business sentiment was reported from several quarte~s. The l?rice tr?nd. continued upward during t P?rted declines of less than 1 per cent and one other that February, partIcularly m certam hnes, and some anticipatory eg18tered only :a seasonal reduction in sales. A considerable This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) rad e ~------------------------------~~~==~~~~~~~~--------------------------------------- 2 MONTHLY BUSINESS REVIEW ---------------------------------------------------------------------------------------- buying was in evidence. In every reporting line inventories on hand at the close of the month were larger than either a month earlier or a year ago. Grocery and farm implement firms reported an increase over the preceding month in collections during February; declines which were to some extent seasonal occurred in the other reporting lines. The demand for groceries at wholesale held up well during February, as evidenced by the fact that despite the shorter month total sales were only 0.7 per cent under those in January. They reflected an increase of 4.0.7 per cent over the same month last year, as compared with a like expansion of 28.3 per cent in the previous month. Stocks on hand February 28 were 6.0 per cent greater than a month earlier, and 42.8 per cent larger than a year ago. The rate of collections picked up appreciably during the month. The distribution of farm implements turned upward in February, showing a contrary to seasonal gain of 14.3 per cent over the preceding month. The increase as compared with the same month last year amounted to 335.3 per cent. It is indicated that business was well sustained in the first part of March, despite some advance in prices. Collections during February totaled 50.0 per cent more than in January. A chiefly seasonal reduction of 10.3 per cent was reflected in the total sales of reporting wholesale drug firms in the Eleventh District during February, and the comparison with the corresponding month a year ago continued to improve. While conditions in some areas were better than in others, a fairly good demand for merchandise was visible in most sections. Because of the shorter month, total collections were 5.7 per cent under those of the previous month. An active demand for dry goods was reported by wholesalers in this district during February. The month's total sales were in approximately the same volume as in January, and they were more than twice as large as in February last year. While the bulk of purchases represent merchandise to meet the expanding consumer demand, there is some anticipatory buying. Collections declined 12.8 per cent as compared with January. Although a decline of 9.0 per cent, only partly attributable to seasonal factors, was shown in the distribution of hardware through wholesale channels during February, the comparison with a year ago was somewhat more favorable than in January. Sales during the month were 68.4, per cent above those in February, 1933. A partly seasonal reduction in collections was witnessed in February. CONDITION OF WHOLESALE TRADE DURING FEBRUARY, 1934 Percentage of increase or decrease in- ----------------~-----------------------------Net Sales Stooks Ratio of ooUooNet Salcs Feb., 1034 Jan. 1 to data Feb., 1934 tions during F~~ eompared with oompared with eompared with to BOOOUDto ~ng Feb., Jan., same period Feb., Jan., notes outow iast year 1933 1934 January 1033 1034 + 36.0 +42.8 + 6.0 Grooories ......... + 40.7 .7 76.7 .6 Drygoeds ........ +l04.4 +107.1 +66.8 + 4.6 32.3 Farm implements .. +335.3 +14.3 +272.0 + 6.1 + 6.6 7'06 Hardware ........ + 68.4 - 0.0 + 68.0 + 2.1 + 1.0 42'2 Drugs ............ + 36.2 -10.3 46 . + 30.8 + 3.6 + 4.2 SI Consumer buying at department sto:e5 i~ leading cities of the Eleventh District;: mained very active during February. aggregate sales for the month evidenced a counter to season~ gain, being 5.2 per cent greater than in the previous mont .. This development is more significant when allowance IS made for the fact that February had two less business dayS than January. Sales also registered an increase of 34.9 ~er cent over those in February, 1933, which is the larges~ 1~; crease over the corresponding month a year earlier Sl~ . the recovery set in last spring. Reflecting the favorable ln f crease in business this bank's seasonally adjusted ind£, department store sales increased from 67.5 per cent 0 t e 1923-25 average in January to 78.2 per cent in February, which was 20.2 points in excess of that in February last year~ The movement of spring merchandise during the early par of March was reported to be in good volume. . Stocks of merchandise held on February 28 by reportln~ firms were seasonally larger than those on January 31, athe reflected an increase of 16.5 per cent over those held. on the same date a year ago. The rate of stock turnover dunng .Od two months of 1934 was .47, as againsl1 .40 in the same perl last year. er Collections on open accounts during the past month w well sustained as compared with the preceding month, T~e they continued in much larger volume than a year ago. the ratio of February collections to accounts outstanding on 5 first of the month was 37.1 per cent, which was th~ sFbr~' that in January, and compared with 30.9 per cent 1D e ary, 1933. Retail Trade i h d - BUSINESS OF DEPARTMENT STORES Totai sales (peroentage): February, 1934, compared with February, 1933 ... .......... ............ ......... February, 1934, oompared with January, 1034 . ... . ....... ... .. ... . .......... .. .. January 1 to date compared with same peried last year ...... ............. ... ... .. Credit enles (peroentage): Fehruary, 1934, compared with February, 1033 .................................. February, 1034, compared with January, 1934 ....... ... ......................... January 1 to data compared with same period last year ........................... Stocks on hand at end of month (percentage): February, 1034, oompared with February, 1033 ... . . ........ .... .. .... .. ......... February, 1034, oompared with January, 1934 ...... ...... ....................... Stook turnover (rate): Rate of stook turnover in February, 1033 ........................................ Rate of stock turnover in February, 1934 ..... . . ...... ....... . ... . .... .... ....... Rate of stock turnover Jnnuary 1 to February 28, 1038 ... ..... ... . ..... .......... Rate of stock turnover January 1 to February 28, 1034 ..... ......... ............ . Ratio of February eolleotlons to aceounts receivable outstandIng February I, 1084 ........ Ratio of Feb. oollections to installment acoounts receivable outstanding Feb. I, 1084 ...... Indexes of department Btore Bales: Una4justed-February, 1934 .... ..... . ......... .. .............................. Unadjusted-January, 1084 ...... .. . ........................................... Adjusted-February, 1984 .........................................•........... AdJustod-January, 1084 ...................................................... IndexOB of department store stoeks: Unadjusted-February, 1034 ............. '" . •..•. .. •. .............. •. ........• Unadjusted-January, 1984 ................................................... ~~i:::~=r:~~,;~\~~~~:::::::: :::::: :::: ::::::: ::: :::::: :::: :::::: :::::: ::: DaUas +44 .1 +16.1 +48.3 Fort Worth +26.7 + 6.3 +26.5 Houston +40.3 +1.1 +36.4 San Antonio +30.4 + 2.3 +25.1 Others +20.0 - 7.7 +22.7 +46.0 +17.6 +45.2 +32 . 2 + 9.6 +31.3 +42 .0 - 6.0 +41.5 +34.0 +1.1 +27 .9 +36.5 .1 +19.6 +14 .5 +13 .8 + 7.3 +13.0 +28.8 +11.4 +22.4 +10.7 t .22 .29 .42 .66 38.3 16.5 .16 .18 .82 .38 30.8 10.2 .21 .42 .46 38.0 . 24 .26 .40 .53 41.7 72.9 58.0 82.8 67.4 66.5 58.3 80 .1 78.8 71 .7 64 .1 84 .4 72.0 53.5 47 .8 64 .4 52.5 49.3 41.2 51.4 41.4 65.9 57 .0 68.6 67 .3 43.7 38.7 47.0 45.0 89.1 37.4 38.7 40.7 .28 17 8 11 ..1 .17 .18 .36 .38 34.2 19.8 Total Distrlot +84. 0 + 6.2 +33.3 t t +40.7 7.4 36.2 16 5 . 12.3 .20 .24 .40 .47 37.1 15.0 65.7 56.1 78.2 67.5 52.6 46 .1 54.8 53.0 --------------------------------~~~==~~-=~~~~~~~~~~-------------------------------- MONTHLY BUSINESS REVIEW 3 ----------------------------------------------------------------------------------------------Commercial An improvement was shown in the record Failures of commercial insolvencies in this district . during February, both the number of ~allures and the indebtedness involved being smaller than In either the previous month or the same month last year. The report of Dun & Bradstreet, Incorporated, shows that 26 defaults occurred last month, as compared with 27 in January and 93 in February a year ago. Total liabilities amounted to $366,937, as against $502,373 in the preceding month, and $1,665,933 in February, 1933. AGRICUL TURE Crop Con. ditions Heavy rains over a large area of this district during February and the early days of March added much needed moisture reserves and brightened the agricultural outlook. However, the rainfall in Northwest Texas and Southern New Mexico Was light and very scattered. Much of this territory is extremely dry and very little row crop land is prepared for planting. While there is still a deficiency in subsoil moisture oVer a very large area, topsoil moisture is adequate generally for plantincy operations in all sections except those suffe . b 1 . nng from the prolonged drouth. Fur ther genera rams Would be very beneficial in most sections. The fair weather since early March has enabled farmers to t.n ake good headway toward the completion of l~nd preparatlo~ and to get under way spring pla~tin g opera~lOns. ~orn plantmg in the southern half of Texas IS progressmg rapIdly bnd is gradually being extended northward. This work has een stimulated by the generally mild temperatures. Cotton planting is becoming general in South Texas. Small grains in dry areas of Northwest Texas and Southern New Mexico are in very poor condition and prospects nte very discouraging. Elsewhere these crops have made i11uch improvement as plant growth has been stimulated by the better moisture conditions and the moderate temperaLht es . In most sections the poor condition of the crops during ~ e e.ady part of the growing season prevented ~he pr?per tOolIng of plants, but the improvement recently IS partIally overcoming this condition in some areas. l' The condition of some commercial ve.getabl.e crops in eXas declined in February due to exceSSIve rams and the fPpearance of blight on some crops. Other .crops showed a Urther improvement during the month. Spnng crops generally have a good start and early maturity is expected u~less Untoward conditions develop. Practically all crops are m a (uch better condition than a year ago as the mid-February reeze in 1933 injured severely most growing crops. There ate shown below comparative condition figures on principal crops as reported by the United States Department of Agriculture. CONDITION OF COMMERCIAL VEGETABLE CROPS IN TEXAS --~~~~~==~~--------S Crop n~~~ heans . ... .. . .... .... ... . .. .. . I~l~~~:' (.~' : ~ ~. ~:: : ~ j:.: ~ ~: ~:.: : Ga~~mbcrs .. . .. ..... . . .... . •. . . . .. ~\~~~.:: :: :: ::: : : : ::: : :::: ::: : ::: :::::...::::. '~r~~~··· I'olllat mes. ·::::::::::::::: .... ..... .......... l'o~t'oes Peas . •• •• • .•.• • • ••••• .• • ... • 'I'UrnIPB~·.·. ::: ::: ::::: : : :: :::::: : : Maroh 1, 1034 (per oont) 83 77 70 80 70 78 75 00 , 75 75 70 81 68 84 03 74 Maroh 1, 1033 (por oent) 70 60 33 54 58 75 01 60 31 58 55 65 45 60 76 52 Fobruary 1, 1034 (per oent) SO 80 79 81 si71 70 82 82 65 Livestocl. Range prospects over a wide area in this district were improved materially by the heavy rains which occurred late in February and in the early days of March. Nevertheless, there are portions of West and Northwest Texas and Southern New Mexico which have received little or no rain and in these sections conditions are becoming very critical. In the Northwest Texas wheat areas grain fields hav.e furnished practically no pasturage, due t~ the lack of mOIsture, but in the central and north central grain areas, small grains are supplying much good grazing. The Edwards Plateau region, which suffered from a prolonged. drouth, received con~iderable moisture during the past thIrty days but more ram would be welcome. Ranges in this area are expected to improve materially with the appearance of warmer weather. In South and East Texas ranges .gen~rally ar~ well s~pplied with moisture and range vegetatlOn IS greemng. WhIle there was some shrinkage in livestock during the cold weather in late February and early March, livestock generally have helq. up much better than would be expected on the poor ranges, and have come through the winter in fairly strong condition in most sections. The condition of cattle ranges in Texas was placed at 69 per cent of normal on March 1, the same as a month earlier and compares with 78 per cent a year ago. Sheep and goa~ ranges declined 2 points in February and the March 1 condition of 64, per cent was 10 points lower than on the same date in 1933. The condition of cattle was rated at 71 per cent on March 1, which was 2 points lower than on February 1, and 8 points below a year ago. The condition of sheep and goats declined 3 and 2 points, respectively, during the month and was 6 and 3 points, respectively, lower than at the same time in 1933. Movements Cattle receipts at the Fort Worth market and Prices in February exceeded those of the previous month and a year ago. While the arrivals of calves and hogs showed a substantial decline as FORT WORTH LIVESTOCK RECEIPTS (Number) Cattle .. .... . ... . Calves ... ...... , Hogs .... .... .. .. Shoep.. .. .. . .... February 1034 31,394 13,834 20,100 25,000 February Change over 1033 year 22,948 + 8,446 7,733 + 6,101 26,721 + 2,870 88,810 -13,729 January 1034 20,523 20,252 34,100 24,708 Change over month +1,871 -6,418 -5,000 + 292 COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight) Fohruary 1084 Deef stecrs .. ..... , .. .. .............. . . ... $5.10 4.50 Stecker stcers ... .. .... . .. . .. . . . . . ... . . ... 3.25 Butcher oows . ... . ........ •.. ... . . . •. •... Stocker oows ... . .. . . ...... . ........ . ..... 5:00 Calves .... ... ...... .. · .. · .......... · .... 5.00 HO(!ll ...... .... . ... · · ······ · · .. · · · · · .. ··· 4.75 8.75 t:Ct;:::::::::::::::::::::::::::::::::: Fobruary 1933 S4.60 4. 10 2.50 2.50 5 .40 3.60 2.65 5 .00 January 1084 54.85 4.00 3.25 2.76 4.50 3.90 4.26 8.50 ~------------------------------~~~====~~~~~~~-=----------------------------------------- MONTHLY BUSINESS REVIEW 4 --------------------------------------------------------------------------------------------------compared with January, they were materially larger than a year ago. The receipts of sheep showed little change from the previous month, but they were much smaller than in February, 1933. Market prices on all classes of cattle reflected some improvement during the past month with top prices for the season on some classes being shown at the middle of March. Hog prices showed a sharp rise in February, and at the close of the month the best quality was bringing $5.00. Howev.e there was a reaction in the first half of March which carried prices down to the $4.50 level. Sheep and lambs continue to sell to good demand and prices were near the peak at the middle of March. d FINANCE The demand from member banks for Federal reserve bank funds continued at a low level during the past month. Total loans amounted to $66,000 on March 15 as compared with $32,000 a month earlier, and $7,253,000 on the same date in 1933. On the other hand, reserve deposits of member banks in this district reached a new high level at $129,654,000 on March 12, but had declined to $126,427,000 on March 15. On the latter date these deposits were $15,805,000 higher than at the middle of February, and $4,9,805,000 larger than a year ago. Investments in United States Government securities totaled $71,475,000 on March 15, which represents an increase of $5,000,000 over those a month earlier and a gain of $22,536,000 as compared with the corresponding date in 1933. While holdings of bankers' acceptances declined $2,676,000 during the month, they still exceeded holdings a year ago by $5,94,2,000. There was a further seasonal recession in the circulation of Federal reserve currency. The total circulation on March 15 was $4,6,024,000, as compared with $50,162,000 on February 15, and $57,645,000 on March 15, 1933. Operations of the Federal Reserve Bank CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) Total cash reserves . . .. ... .. . . ........ . .. • Discounts for member banks .. . . ... •. .. . ... Other bills discounted .. ..... . . . . .. .. .. ... . Bills bought in open market . . .. ..... . . . .. . United States securities owned .. .. . .... ... . Other investments ... . . ... ... .. .. . . . .... . . Total earning assets . . . ... . .. .. .. .... ... .. Membor bank reserve deposits .. .... .. . . . . . Federal reserve notes in actual circulation . . . Federal reserve bank notes in aotual oiroulation ...... .. .. .. . .... .. . . .... .. . . . . . . March 15, 1934 $ 109,333 00 Nonc 9,392 71,475 Nonc 80,933 120,427 41,109 4,855 March 15, 19S3 $ 82,525 7,253 Nonc 3,450 48,039 5 59,647 70,022 57,645 None February 15, 1934 $ 95,163 32 None 12,008 00.475 5 78,580 110,022 41,070 9,086 A further marked increase in the investments of member banks in selected cities was an outstanding feature of reports covering the four-week period ending March 7. Holdings of United States Government securities totaled $191,977,000 on March 7, which represents a gain of $21,024,,000 as compared with four weeks earlier and an increase of $104,,561,000 as compared with the corresponding date in 1933. Other stocks and bonds owned increased $2,489,000 during the four-week period and were $1,592,000 greater than a year ago. While loans on securities increased $626,000 between February 7 and March 7, there was a decline of $7,933,000 during the same period in "all other" loans (largely commercial). As compared with a year ago, the total loans of these banks were $26,653,000 smaller. Their net demand deposits rose $5,995,000 between February 7 and March 7, but this gain was partially offset by a decline of $3,407,000 in time deposits. The combined net demand and time deposits of these banks on March 7 were $48,846,000 larger than on the corresponding date in 1933. The reserve deposits of these banks with the Federal Condition of Member Banks in Selected Cities Reserve Bank totaled $69,595,000 on March 7, which was $5,415,000 greater than four weeks earlier and $15,725,000 greater than on March 8 a year ago. CONDITION STATISTICS OF MEMBER BANKS IN SELECTED OITIF..B (In thousands of dollars> ------------~~~~~-------------United States securities owned . . .. . .. . . . . . . All other stocks, bonds, and sccurities owned. Loans on sccuritles . . .... ... . ....... ..... . All other loans .... ........... .. . .. .. ... . . Total loans ....... . ...... .. . .. .. . ..... .. . Net demand deposits . . ........ . .. . .. .. . .. Time deposits . . . .. . ....... . ... . . .. . .... . . Rooerve with Fedcral Rescrvc Bank .. .. . . . . Bills payable and redisoounts with Federal Reserve Bank .... ... . . . .. .. . . . .... . .. . . March 7, 1034 S 191,977 55,951 58,567 120,188 187,755 283,783 120,885 60,505 Maroh 8, 1033 S 87,410 54,359 07,787 140,021 214,408 228,004 127,128 53,870 None 781 February 7, 1034 $ 170,053 53,402 57,041 137,121 105,002 277,788 124,202 04,180 Nono Substantially less than the usual seasons} decrease was reflected in the volume. 0 debits to individual accounts dunny February at banks in seventeen princiPs centers located in the Elevent~ District. Tota.l char~~ amounted to $513,474,000, whICh compares With $5 , 803,000 in the preceding month, and $400,235,000 in Febr u. ary, 1933. The percentage decline from January amounted to 9.1, and the gain over a year ago was 28.3 per cent. Debits to Individual Accounts DEBITS TO INDIVIDUAL ACCOUNTS (In tbousands of dollars) ----------------~------P-e-roe n~ro~ge--------~p~er--c~ Abilene . . .. ... . . Austin . . .. ..... . Beaumont . . . ... . Corsicana .. . . . . . Dallas . ........ . El Paso .... .... . Fort Worth . . . .. • Galveston . . . ... . Houston ..... ... . Port Arthur .. .. . Roswell . ....... . San Antonio . .. . . Shreveport . . . . . . Texarknna" .. .. . Tueson .. . . ..... . Waco .. .. . .. ... . Wiohi ro Falls ... . February 1934 $ 5,384 18,501 15,638 2,527 148,364 17,151 51,500 10,040 123,470 4,017 1,097 44,065 20,700 4,740 7,204 11,580 0,889 February 1033 $ 4,155 17,027 11,704 2,083 100,397 13,320 39,084 15,025 101,838 3,501 1,530 35,307 18,860 4,657 6,580 8,215 7,040 ohange over year +20 .0 + 8 .7 +38. 0 +21.3 + 35 .6 +28 .7 +29 .0 +30.7 +21.2 +40 .4 +30.5 +24 .8 +42. 0 + 2 .0 + 0 .5 +41 .0 +40 .3 January 1934 $ 5,538 17.016 16,594 3,031 102,073 17,457 56,400 23,021 140,259 5,530 2,210 47,530 30,203 5.015 8,037 12,500 10,400 ehangc ever mcnth - 2.8 + 8' 87 - 6. _ 16.0 - 8.5 - 1.8 - 8.7 _ 17.0 _12 . 0 -11.1 _ 10.0 - 7.3 _ 11.6 -I~'~ - 7'3 -. ~ TotaL.. .. S013,474 $400,235 +28.3 $564,803 - O:\tb "Inoludes figures of two banks in Texarknna, Arkansas, located in the Elg Distriot. Continuing the expansion which began.:; September last year, the combined SI· ts average of net demand and time depos1.y of member banks in the Eleventh District dUl'ing Febrgs~n rose to $728,463,000, as compared with $698,123,00 th 1s January, and $607,612,000 in the corresponding mon as year ago. The chief increase over the previous month;v ut recorded in net demand deposits, and the gain was a ~y equally divided between reserve city banks and cou n ra banks. While the time deposits of reserve city banks we Deposits of Member Banlcs -----------------------------~~~~~~~~~~~~~~----------------------------- MONTHLY BUSINESS RE¥IEW 5 -------------------------------------------------------------------------------------= substantially smaller than in February, 1933, those of ~ho?ntry banks reflected an increase which more than offset IS decline r-- DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) ------------~~~~~~----------Comblnod Total f~b., ",a~., ~rll, Jay, JUlno, U y, ~g., got.,pt., nOv., J co., Bn., 11ob., Net demand deposits 1033...... $415,200 1933 .. .. .. 413,776 1083 .. .... 804,700 1033...... 304,336 1033 .. .... 305,083 1033 . . . ... 306,783 1033. . .... 380,177 1033 . ..... 400,507 1033.. . . . . 436,027 1033.. . .. . 460,108 1083...... 404,176 1034...... 505,000 1034... . .. 582,717 Reservo City Banks Timo Net demand deposits deposits $102,412 $190,307 188,547 202,276 186,161 193,431 186,606 101,847 186,405 102,306 101.055 196,040 190,931 191,302 187,508 105,145 186,OS6 210,087 187,047 228,205 186,087 240,071 192,214 249,001 105,746 261,770 Country Banks Time Net demand Time doposits dopoeits dO)lOl!lts $118,756 $215,803 $73,656 115,737 211,500 72,810 113,723 201,359 72,438 113,101 202,480 73,495 113,300 203,587 73,015 113,008 200,748 77,147 112,665 107,875 78,266 110,146 205,452 77,362 109,264 226,040 77,672 100,014 287,033 81,033 106,132 253,205 80,565 108,317 ~66,818 83,807 110,348 270,047 85,308 Acceptance Market A small :eduction was shown during February 10 the volume of outstanding bank acceptances issued in this district The total on the last day of the month amounted to $1 646 : 029, which compares with $1,822,684 outstanding on Jan~ ary 31, and $910,500 on February 28 last year. Both classifications of acceptances participated in the decrease from January, but were larger than a year ago. The amount of savings deposits held by 130 reporting banks rose from $133,759 _ 694 on January 31 to $135,449 231 o~ February 28, registering an increase of 1.3 per cent.' On the latter date the total was 0.8 per cent less than a year ago whereas on January 31 a similar decrease of 3.2 per cent wa~ reflected. Savings depositors at 119 of these banks numbered 319,469 at the close of the month, as against 316,928 on the last day of January, and 321,994 on February 28, 1933. Savings Deposits ~~~============================~~~~~~~~==~~~~~~~--SAVINGS DEPOSITS ~-----------------------~------------------------------- ~~:ont ........... .. .. .. EIPBSo·· .. · .. .. · ........ · 11ortW~ . ............. .. .. Girth ............. . .. lI.~;a%t~n .. .... ....... . ..• Port Art"' "''''''' '' ''''' San Ant!'!1' ............. .. Sh hlO .. ......... .. .. \V revcport . . . . .... ..... .. . \V~ia·F · · · · · · ········· · · Number of reporting banks S O· 2 4 4 II· 2 7· 3 3 3 70· Number of aavings depositors 8,180 73,605 10,355 32,713 10,504 65,755 4,870 17,208 21,465 10,421 5,702 52,502 January 31, 1034 Fobruary 28, 1038 February 28, 1034 Amount of aavin,l!s deposits $ 3,092,715 28,672,400 4,244,271 9,032,838 10,126,813 27,440,771 1,854,250 14,308,628 10,201,307 5,756,888 2,761,313 22,058,800 Number of savings doposltors 8,081 74,520 10,616 33,665 10,810 66,642 4,252 16,958 22,286 10,310 6,630 62,371 Amount oC savlnp deposits $ 3,041,800 25,188,016 3,836,476 11,381,444 0,770,165 20,080,250 1,851,371 14,092,092 0,143,426 5,608,586 2,376,707 20,767,630 Porcentage ohango ovor yonr In snvings deposits + 1.7 - 0.4 +27 .2 -12.7 3.0 - 8.6 .2 + + +1.6 +12 .0 + 2.6 +16 .2 + 0.2 I\.U otbe alia .... . ....... .. rs . . .............. . Total. . .. .. .. .. .. • 130 310,460 $185,449,231 321,004 $136,652,871 .8 .Only 8 banks in Dallna, 10 in Houston, 0 in San Antonio, and 71 in "All others" roported tho number of savings dopnaitors. --- Number of savings de)lOl!itora 8,096 73,101 10,102 32,471 10,624 65,691 4,822 17,008 21,284 10,409 6,654 61,866 deposita S 2,900,843 28,366,100 4,183,376 0,800,547 0,902,802 27,223,671 1,030,878 14,109,770 10,110,812 6,717,618 2,708,567 21,430,725 310,028 $133,760,004 Amount DC .avin~s Pereontage ohango ovor month in savings deposits 3.1 + + .0 +1.6 + .4 + 1.3 + .8 - 4.4 .8 + +1.7 + .7 + 1.0 + 2.0 + 1.3 Prevailing rates: MARCH DISCOUNT RATEB -----------------------~~.---~----~---.~~.---~----EI Pnao Fort Worth Houston San Antonio Wnoo 2*7 6 6-8 6-8 8-8 6 6-7 6-0 6-8 6 3-0 6-6 6- 8 4- 7 0-8 6-8 6-10 6-10 5-7 6-7 6-7 7-10 0-8 6-8 6-8 8-10 DaUna -- 1'e t'Z~ e M~ tllmg 8 6-8 6-8 6-10 6-8 6-8 6-6 8 INDUSTRY . The consumption of cotton at do~estIc textile mills during February contmued , in larger volume than in the correspond~hg tnonth a year earlier but on the other hand, it reflected I e Usual seasonal decli~e as compared with the previous nth. There were 44.7,890 bales of cotton consumed in b:l ru~ry, as against 508,034 bales in January, and 44,I,~03 d :s In the corresponding month of 1933. ConsumptIOn i urlng the current season remained appreciably above that s~v the previous season, being 4,6 per cent greater for the Sll e~·tnonth period, Supplies of raw cotton. held by conu lnlng establishments on February 28 were m greater vollne than those a month earlier or a year ago. a Operations of reporting Texas textile mills during Februry Were likewise on a scale higher than in the same month 1ast ' f cl year, and the consumption of cotton an d pro d uctIOn 0 oth Was in such volume as to show an increase over the Prev'lOUS month, contrary to the usual trend. Or ders f or ;b 6-8 6~ finished products on hand February 28 were much larger than a year ago, but they were below those held on January 31. Stocks of cotton goods held by these mills at the close of the month were less than those on both comparative dates. COTTON CONSUMED AND ON HAND (Bales) Cotton-growing states: Cotton cousumod .. . . .. ..... On hand February 28 inConsuming establishments. Public storago and compresses ... . . . . . . ... . . .. United States: Cotton oonsumed .. ... ...... On hand February 28 inConsuming 08tablishmonts. Publio storago and oompress08 ....... ·· · ····· . Fobruary 1934 February 1033 370,211 300,805 447,800 441,203 Au~ust 1 to Fobruary 28 ThiS SOBBon Lnat SOBBon 2,715,040 2,720,636 1,300,803 1,155,736 8,273,424 8,870,704 3,401,614 3,258,300 1,664,300 1,440,413 8,638,905 0,377,783 ~------------------------------~~====~~~~~--------------------------------------------- 6 MONTHLY BUSINESS REVIEW ----------------------------------------------------------------------------------------------- Developments in the Texas cottonseed oil industry during February were along the usual seasonal lines for that month. The receipts and crushings of seed and the production of all products evidenced normal declines as compared with the preceding month. Receipts together with the output of oil and hulls were on levels below those in February, 1933. The production of cake and meal, linters, and the crushings of cottonseed were, however, slightly larger than a year ago . The aggregates of all operations, except the output of linters, during the first seven months of the 1933·34. season remained smaller than in the same period of the previous season. Cottonseed Products Operations at cottonseed oil mills throughout the United States during February were also smaller than in January with one exception. The production of oil witnessed a material increase over the previous month contrary to the usual trend. Output of oil was also substantially above that in February, 1933, as were the crushings of seed and the production of cake and meal and linters. Although the percentage decline was reduced the operations of these mills during the current season continued below those of the previous season. Stocks of cottonseed products held by both Texas and United States mills on February 28 were less than the holdings on January 31, and with the exception of oil they were smaller than those held a year ago. three consecutive months of declines. There were 628,4.57 bales of American cotton imported by foreign countries dUd ing the month, as against 739,352 bales in January, an 557,022 bales in February, 1933. Shipments during the fiscal cotton season continued below those in the first seven montl.IS of the previous season despite the substantial increase If February exports over those a year ago. Japan and some 0 the smaller European countries continue to show increased takings for the season as a whole, while exports to Germany remain on a reduced scale. COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bales) February 1934 Receipts ... . ...... .. ........ . 106,511 238,174 Exports ... . ....... . ........ . Stocks, February 28 .. ...... . . August 1 to February 28 This .eason I,ast .eascn 1,854,523 1,753,057 1,599,828 1,409,05 1 689,692 806,1 35 February 1933 08,560 151,912 COTTON-GALVESTON STOCK STATEMENT (Bales) ----------------------------------------------Feb.28, Feb. 28, For Great Britain .............. . ...•..... . ........... For France . ............................. . .......... . For other foreign ports ................... .. .......... . For coastwise ports ...... ...........•.....•........ ... In compresses and depots ............•.... .•.. ...•. . ... 1984 6,000 8,000 38,500 3,500 633,692 TotaL .......... . ...................... . 689,692 STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS 1933 12,500 3,500 41,000 500 748,635 - 806,135 Tex.. United State. AUj!u.t 1 to February 28 AUj!u.t 1 to February 28 This .eason Last .eason Th,•• eason L.. t .easoll Cottonseed received at mill. 4,125,802 1,344,188 3,858,802 1,252,673 (tons) ...... .. ........... .. 3,454,082 3,337,064 1,162,980 1,121,048 Cottonseed oru.bed <rns) ..... Cottonseed on hand 'eb. 28 742,240 070,004 356,467 230,411 (tons) .. . .. . ...... . ..... . . . Crude oil produced (pounds) ... 329,460,064 340,876,1771,031,084,313 1,068,889,671 1,557,566 1,506,848 535,884 517,635 Cake and meal ~roduced (tons) 079,072 342,259 889,634 306,959 Hulls produced tons) ........• Linters produced (running 544,748 617,488 137,821 185,993 bales) ..... ... ..... ... ...•• Stocks on hand Feb. 28: Crude oil (pounds) ....... ...• 42,114,550 38,057,633 133,741,745 116,562,069 331,572 279,103 81,483 71,443 Cake and meal (tons) ..•...... 145,612 90,022 64,774 40,076 Hulls (ton.) ............ .. ..• 287,828 142,166 88,054 32,698 Linters (running bales) . •, •.. . • The customary seasonal declines wer~ evidenced during February in the exports of cotton through the ports of Houston and Galveston, and at the former of these two shipping centers they were below those in the corresponding month last year. On the other hand, shipments from Galveston were in materially larger volume than in February, 1933. The irregular trends in exports during the past few months, however, have had little effect upon the favorable balance in the cumulative shipments for the season. This is evidenced by the fact that the combined exports of cotton from Houston and Galveston totaled 3,505,879 bales during the first seven months of the current season, which represents an increase of 12.8 per cent over the 3,108,561 bales exported in the same period of the previous season. Receipts of cotton at these two ports during February were seasonally smaller than in January, but at Galveston they showed a small increase over those in February a year ago. Stocks held on February 28 were in smaller volume than a month earlier or a year ago at both ports. Cotton Movements Although aggregate exports of cotton from all United States ports showed a further seasonal decline, they turned upward as compared with the corresponding month a year earlier and evidenced an increase during February after COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) ----------------------------------------------February February August 1 to February 28 Receipts .................•... Exports .... . ... ..... .... ... . Stocks, February 28 .. ... .... . 1934 89,332 108,400 1033 161,060 203,980 This .eMon Last .eason 2,071,407 2,434,303 1,006,051 1,6959,6081~ 1,300,260 1,80 , SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT UNITED STATES PORT8-(Bales) ALL ----------------------------------------------August 1 to February 28 Thi••eason Last .ens on Receipts ...... ............•... ....... .. ..•.....•. .. .. 6,614,618 7,2~~'~~ Exports: United Kingdon ... ..............• ... . . • ... .. 071,945 948 '302 632080 6, France ... .... ............... . .. .. ... .... ..• 488' 103 516,969 1 023' 127 1,218,704 '710'742 649,73 7 1,322:639 1,211,974 46 308371 370,1 Ai other countries .•. .. . .. . .............•.... 5,696,748~ Total foreign ports . . .. ....... ............ . .......... . 5,547:007 4,586,0 Stocks at all United States ports, February 28 . .....•.... 3,415,381 ~fr~~~~~;~~:::::::::::::::::::::::::::::: : I------------------------------------~ SPOT COTTON PRICE8-(Middling Basis) (Cents per pound) ------------------~--~~~------------~---March 16, New York . ...•......................•... Now Orleans ............................ . Dallas ..............•................ ... Hou.ton .. •.•.............•..... . ...••... Galveston .... ..•..... . ..... .... .... ..•.• Petroleum February, High 12 .65 12 .50 12.05 12.50 12 .40 1934 Low 11.75 11.42 11.10 11.40 11.45 1934 12.45 12 .35 11.05 12.36 12.36 duC' Due to the shorter month, a sizable re tal tion from January was shown in the tOrve output of crude petroleum in the Eleventh Federal Res to District during February. Production, which amount~ the 27,384,,000 barrels, was 2,697,800 barrels larger than In d --------------------------~~~~~~~~~~~~~~------------------------~ MONTHLY BUSINESS REVIEW 7 -------------------------------------------------------------------------------cor.responding month last year, whereas in Ja~uar~ there w.as a lIke increase of 4 94,0 250 barrels. Daily YIeld III the dIStrict during Februa~y a'veraged 978,000 barrels, as against 956,289 barrels in the previous month and 881,650 barrels in the same month a year ago. Drilling activity fell off somewhat during the month but continued on an appreciably larger scale than in February, 1933. The daily average production from Texas fields amounted to 908,250 barrels, which compares with 887,060 barrels in January, and 814,4.00 barrels in February last year. A major part of the expansion over both comparative months was registered in East Texas, although certain other sections also reflected; gains. Output in New Mexico was at a slightly lower rate than in the previous month, and in North Louisiana it increased somewhat. OIL PRODUCTION-(Barrels) February, 1934 Total Daily Avg. InorollSo or deorCll8o ovar January, 1084 Total Daily Avg. ~ortb TOIIIS ... . .. .... . . . ... . 2,783,200 Eontr~1 West TOxllS ... . . .. .. . . 4,327,400 Boll8t OXIlS ........ .... ... .. . 12,665,800 1,215,200 'I' uth TOxllS . . ... ... ... .... . . elas COlISta!. ..... . .. ..... .. 4,430,400 00,400 154,550 452,350 43,400 158,550 _ 271,200 267,300 844,800 150,700 624,860 + 871 + 6,334 +16,524 052 - 1,687 Now M Total TexllS ..... .... 26,481,000 North Lo°XI~O.. . . ... . . . . . . . . . .. 1,164,800 uIslana.. .. . .. . . . . .. . 788,200 908,250 41,600 28,150 - 2,067,8li0 - 128,100 65,000 +21,190 106 + 627 978,000 -2,260,950 +21,711 --- Total Distriot. . . . . . .. 27,384,000 CRUDE OIL PRICES March 9, Telas COlISt.1 (34 gr. and above) .. .. ... . .. .. . . .. . . . . ... North ToxllS and Nerth Louisiana (40 gr. and above).. . . . t-. ~or~b 'I'011lS • . •••••••• •••• • ~trTI Woot TexllS . . . . .. . . . Bouth TIllS . . ..... ..... . ... Texas C~:BC.::::: : ::: : :: N Total Texas .... .. . N~~?tlco . . ... . . .. . .. .. • ulslana .. .... . . . ... ru ary totals, distriot . . .. . DUary totals, distriot . . . . . . J:b ~~r~Uo .. .. . . . lloautno~i : : : : : : us gore al as Christi .. EIPas .. · .... .. rot~ .. .. .... Galves orth ..... l:t ton ...... pg~.~n .... .. .. Ba~ A;~~r .. .. Sbr DlO .... \V evOport . .. . . \V~tn o I "" Falls"" .. . --:!,otal. . . . Cernen~ h 19aa • •62 . 62 Building Failuras Initial produotlon Completions Produoers GIIS weils 132 66 256 72 98 82 41 240 36 70 6 2 3 5 3 44 13 13 32 26 13,678 80,306 1,752,205 13,603 66,576 614 8 34 468 1 17 19 1 2 127 1 15 1,926,4~b 22 21 148 179 1,027,832 2,764,008 486 636 651 836 1,366 ::::- - March 10, (Oil statistics compiled by "The Oil Weekly," Houston, Texas) FEBRUARY DRILLING RESULTS - 1934 S1.12 1.03 Construction permits issued at leading cities in this district during February totaled 8.41 per cent less than in the preceding month and were about a third smaller than a year ago. Nevertheless the number of permits issued exceeded that in each of th~ two comparative months by an appreciable margin. There were 1,135 building permits issued in February with a valuation of $696,64.2, as against 1,096 permits in the previous month, amounting to $760,294, and 873 permits reported in the same month last year, the total value of which amounted to $1,051,521. BUILDING PERMITS February, 1034 No. Valuation February, 1988 January, 1934 No. No. - -4 - -9 -S -5,083 49 68 28 322 32 82 80 174 64 128 88 18 8 29,300 10,335 17,335 163,150 38,905 40,000 S6,278 262,405 12,989 68,000 20,715 8,007 2,160 63 75 13 211 28 58 60 116 27 106 84 21 13 Porcentage ohango valuation over year Valuation S 740 S8Ii,400 17,905 9,963 278,304 47,380 67,000 28,055 123,805 3,300 26,317 84,247 28,453 4,662 - -$1,051 - ,521- - - - 878 -1,185 $606,642 +586.9 - 92 .4 - 42.3 + 74 .0 - 46 .0 - 17.9 - 40 .3 + 26 .3 +103.0 +208. 6 +162.1 - S9.6 - 62 .0 - 58.7 S3 .7 Percentago ohango valuation ovor month Valuation 22 S 62,8li4 30,788 56 10,550 67 62,924 19 172,773 377 28,136 35 57,420 70 20,872 95 160,426 127 9,814 26 60,447 100 39,819 90 26,147 16 13,325 7 - --1,006 S760,204 Two months 1934 No. 1983 Valuation No. Valuation -48.0 -65 .9 -88.8 31 105 126 47 699 67 152 175 801 80 228 178 28 15 67,937 60,088 20,885 80,269 326,928 62,041 97,420 57,150 412,920 22,863 138,437 60,584 35,054 15,481i 17 148 181 30 488 51 154 138 278 52 226 161 46 36 16,251 436,114 27,183 13,763 448,310 57,649 152,400 49,08li 382,362 8,205 75,158 49,361 48,819 6,607 - 8.4 2,281 Sl,456,086 1,961 SI,771,267 -9l.9 - 4.8 - 2.0 -72 .6 -11.4 +68.2 -30. 8 73 8 67 .4 . 32.4 i - .7 Paroontage ohange valuation ovar period +318 .0 - 86 .2 - 28.2 +483 .2 - 27.3 + 7. 6 - 36. 1 + 16.4 8.0 177.9 + 84.2 + 22.6 - 28.2 +134.4 4: --- 17.7 Both the production of Po~tland cement (but reflected a decrease of 23.0 per cent from a year ago. at Texas mills and the shIpments from t eSe rnills during February rose above the level of a y~ar PRODUCTION, SIDPMENTS, AND STOCKS OF PORTLAND CEMENT ~o, and also showed material gains over the p~ecedIllg (In thousands of barrels) Onth. February output totaled 280,000 barrels, whIch comPercentage pates With 195000 barrels in January, and 197,000 barrels change from January 1 Parcentage Feb., Feb., Jan., through change over ~ the corresp~nding month last year. There were 273,000 1934 1938 1934 Feb. 28 year al'tels of cement shipped from Texas mills. during the 280 +42 .1 +43 .6 476 Produotion at Telas mills ... . . + 6 .1 637 Shipments from Texas mills . . . . 273 +34.6 + 3.4 + 10 .0 lttonth, as against 264,,000 barrels in the prevlO~s month, Stacks at ond of month .t Toxas mills . . . .. .. ... . . .. .... ... . 492 -23. 0 + 1.7 203,000 barrels in February, 1933. Inventon es at ~~e c OSe of February were slightly larger than on January , aId 8------------------------------~~~~==~~----~--------------------------------------------MONTHLY BUSINESS REVIEW ----------------------------------------------------------------------------------------------SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the F eder a l Reserve Board, March 24, 1934) Volume of industrial activity increased in February for the third consecutive month and there was a considerable growth in factory employment and payrolls. Wholesale commodity prices, after advancing for two months, showed little change between the middle of February and the middle of March. PRODUCTION AND EMPLOYMENT Output of manufactures and minerals as measured by the Board's seasonally adjusted index of industrial production, increased from 78 per cent of the 1923·1925 average in January to 81 per cent in February. The advance reflected chiefly increases of considerably more than the usual sea· sonal amount in the output of steel and automobiles, while activity at meat packing establishments declined. Activity at textile mills, which in January had increased from the low level prevailing at the end of the year, showed a further moderate increase in February partly of a seasonal char· acter. In the first week of March, steel production showed a further increase and in the following two weeks remained unchanged. Factory employment and payrolls increased sub· stantially between the middle of January and the middle of February to a level higher, on a seasonally adjusted basis, than at any other time since the summer of 1931. Working forces on railroads also showed an increase, while at mines there was little change in the volume of employment. The number on the payrolls of the Civil Works Administration declined from about 4.,000,000 in January to about 2,900,000 in the week ending March 1. At automobile factories there was a large increase in the number employed to approxi. mately the level prevailing four years ago. Substantial increases were reported also for the textile, clothing, shoe, and tobacco industries. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, showed a decline in February, followed by an increase in the first half of March. The total volume indicated for the first quarter is somewhat smaller than in the last quarter of 1933, but considerably larger than in the first quarters of 1932 and 1933. DISTRIBUTION Freight traffic increased seasonally ~uring February and the early part of March. Dollar volume of department store sales on a daily average basis showed little change jn February. DOLLAR EXCHANGE The foreign exchange value of the dollar in relation ~o gold currencies declined in the second week of February ~ within two per cent of its new parity, and in the latter Pdar of February and the first three weeks of March showe a further slight decline. COMMODITY PRICES Wholesale prices of commodities showed little change from the middle of February to the middle of March aft;:f a considerable increase earlier in the year. The index of \ ~ Bureau of Labor Statistics for the week ending March .th was at 73.7 per cent of the 1926 average, compared WI d 73.8 per cent the week before, and 72.4 per cent at the en of January. BANK CREDIT Between the middle of February and the third week o~ March imports of gold from abroad resulted in a growth about $550,000,000 in the country's monetary gold sto~r: Funds arising from these imports of gold and from expen ture by the Treasury of about $140,000,000 of its cash an t deposits with the Federal reserve banks were for the moS · h co n5e-k part added to the reserves of member banks, whlC quently increased by $600,000,000 during the four-wee s period. At the close of the period member bank reservet were nearly $1,500,000,000 in excess of legal requiremen ~ Total deposits of reporting member banks increased by abilie $1,000,000,000 between the middle of February and s middle of March, reflecting the imports of gold, purchas;j. by the banks of United States Government and other secu y ties, and a growth of bankers' balances. During March mo ne rates in the open market declined further. Rates on 90-d~ bankers' acceptances were reduced from V2 per cent JO j per cent, and rates on prime commercial paper were rU u.ce d by ilL per cent to a range of 1-14 per cent. Yields on Dl~n States Government securities also declined considerabldy· d March 16, the Federal Reserve Bank of Minneapolis re uc e its discount rate from 31h to 3 per cent. k d
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