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MON Hl Y BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
C. C. WALSH
Chairman and Federa l Reserve Agent
CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents
(Compiled March 15,1935)
Volume 20, No. 2
Dallas, Texas, April 1, 1935
This copy is r eleased for publicntion in mOl'ning pape r!:!-
March 30
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Poroentage or inoreaso or deorCMo inChange rrom
January
February
1936
-----. ~~~~~~~~~~ I --~~~~I--~~~~
~!"!f
1
D:~ I~
ebits to iudividual acoounts (at 18
.•. •.• . ••• • . . ••.•... . •.••.• . . • .••. •
RC8rC~rV:~~~~r~:n~ai~·,~C~b~; b·ti~k; ~t·c~ci· .
o month . . .... .
~~er.vo bank ratio ~t ·o~d ·~r",~·~~th·.·"::::::::
C tiding \>Crm~t valuation at larger centers .. . .
C~~:~~~i~t [~it~~: iruii~e!) y.. ...... ... .. .
2!!. production (barrel~). ~ ~t.l~ ... .... : : : : : : : : : : :
$581.454,000
-
+
5 .0%
4.2%
31,330
64 .8%
$ 1,503,448
28
S
316,366
30,400,400
-
2 . 1%
+ .7 points
. 1~
+ 57
10 .7
-
22 .2 0
8 .8%
Ar~ improvement in the underlying condilion of business
D~d .~nduslr~ was evident in lhe Eleventh. Feder.al Rese~·ve
f Istnct dunng the past month. BeneficIal rams, whICh
e ! Over most of the district, have bettered the agricultural
~utlo.ok, particularly in the western half where the moisture
Feficlency has been of major concern for some time past.
~vorable weather has enabled farmers to proceed rapidly
Wl~h the preparalion of the soil for spring planting, and
eally Spnng seeding operations are well under way in the
sou~hern part of the district. Small grains have shown a
notIceable improvement as a result of favorable growing
weath~r and added moisture. While the condition of ranges
d lIvestock is still very poor over much of the district,
t ~ grass and weeds have made a good start an d with timely
:alns 1 should soon furnish considerable grazing, thereby
reat y reducing the amount of range feeding. Livestock
~lle come through the winter without serious losses and
WI mend rapidly as pasturage becomes available. LivestOCt prices have risen rapidly since the first of the year, and
catt e prices are at the highest level reached in several years.
D'Istn'h ution movements showed a broadening trend de1
'h
h
spite some irregularity resulting from the unseasonable
weather. Department store sales in larger centers were 4, per
cent above those in January, which was greater than seasonal, and exceeded those a year ago by 7 per cent. In
practically all reporting lines of wholesale trade distribution
showed favorable comparisons with both the previous month
and the corresponding monlh of 1934. Payments on current
accounts have been well sustained. Debits to individual
accounts at banks in principal cities, while seasonally 5 per
cent lower than in January, were 12 per cent larger than in
February last year.
Construction activity continued in substantial volume.
Al though the valuation of building permits issued at larger
cities declined 57 per cent as compared with the large
January total, it exceeded that of the same month last year
by 116 per cent.
The combined net demand and time deposits of member
banks in this district rose to the highest level in four years
during February. The average for the month amounted to
$806,280,000, which was $19,385,000 above that for January, and $77,817,000 higher than in February, 1934,. Investments of member banks in selected cities rose moderately
during the four weeks ending March 13, and commercial
loans, while declining seasonally during the period, were
somewhat higher than at this season last year. Federal
Reserve Bank loans to member banks increased from $37,000
on February 15 to $119,000 on March 15, and this bank's
advances to established industrial and commercial businesses for working capital purposes were expanded $131,000
during the same period. The circulation of Federal reserve
notes amounted to $48,155,000 on March 15, as compared
with $4,7,966,000 a month earlier, and $41,169,000 a year
ago.
BUSINESS
Wholesale
Trade
The demand for merchandise in wholesale channels of distrib'ution was well
sustained during the past month. Three
~hPor~in~ lines reflected increases in sales as compared with
e plevlOUS month and four lines reported o-ains over the
corresp on d·mg month last year. While trade t>in some lines
Was rather Spotty and there was evidence of cautious buying
on .~he part of retailers pending a more definite appraisal of
agllcultural prospects, an undertone of confidence exists in
most quarters. The collection situation was generally favor-
able there being increases over the previous month in three
lines. While declines were reported in two lines, this development was due largely to seasonal factors.
The business of .reporting wholesale hardware firms in
this district evidenced a further conlrary to seasonal expansion in February. Sales were 1.6 per cent larger than
in January despite the short month and exceeded those of
the same month last year by 2.2 per cent. While there was
a slowing down in some areas, this was offset by an ex-
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
pansion in other sections. February collections showed an
expansion of 2.1 per cent as compared with January.
A slowing down in the demand for dry goods at wholesale was evidenced by the sales of reporting firms during
February. Distribution during the month showed an expansion of 3.4 per cent over the previous month, but this
was somewhat less than seasonal, and sales were 11.1 per
cent below those in the corresponding month last year. The
decline was due in part to the moderate temperatures which
restricted the demand for winter goods. Collections reflected
a seasonal decline of 14.8 per cent.
While the sales of farm implement firms declined 16.8
per cent from the large January volume, it was seasonal
in character, and distribution for the month averaged 85.6
per cent above that in the same month of 1934. The demand
for implements has been improving in most parts of the
district as the improved financial status of farmers has
enabled them to make much needed replacements. There
was a gain of 6.0 per cent in collections during the month.
The demand for groceries in February showed a further
expansion which was contrary to the usual seasonal trend.
Sales of reporting firms were 0.8 per cent larger than in
January, and exceeded those in February, 1934" by 15.1 per
cent. Business for the two months averaged 13.9 per cent
larger than in the same period last year. Inventories carried by these firms at the end of February were approximately 10 per cent larger than a year earlier. February
collections were 4.4 per cent larger than in the previous
month_
.
CONDITION OF WHOLESALE TRADE DURING FEBRUARY, lU35
Percentage of increnae or decrease inNet Sales
Stocks
Ratio of eollccNet Sales
Jan. 1 to dato
Fob., 1935 tioll' durin g Fob.
Feb .. 1935
compared with compared with compared with to accounts and
Feb.,
Jan., same period Feb., Jan., notes ouwtanding
last yenr
1034 1935 Oil January 31
1934
1035
Groceries ........ .
Dry goods ...... ..
Farm implcmenw ..
Hardware ........
Drugs ............
+15.1
-11.1
+85.6
2.2
+10 .7
+
+ .8
+ 3.4
-16 .8
1.6
- 4.3
+
+ 13 .U +10.2
- 12.8 + 2.0
+117 .U +14.0
- 2.0 - 1.7
+ 7.1 + 5 .7
+.5
+.8
- 3 .8
+ 4.6
+ 3.2
77 .8
32.5
7. 1
47 .4
54.2
The distribution of drugs at wholesale evidenced a decline
of 4,.3 per cent between January and February, but this
recession was less than seasonal, and February business
averaged 10.7 per cent above that in the corresponding
month of 1934. This trend was fairly general over the
district. Stocks reflected a moderate increase over the previous month and a year ago. A decline of 13.4, per cent was
registered in the volume of collections.
The business of department stores in
leading cities of the Eleventh Federal
Reserve District continued very active
during the past month. Consumer demand as measured by
the sales of reporting stores reflected an increase of 4.2 per
cent over those in January, despite the fewer number of
business days in the subsequent month, and distribution of
merchandise was on a scale 6.5 per cent above that in
February a year ago. The index of department store sales,
which is adjusted for seasonal variations, likewise reflected
the active demand for merchandise that prevailed dming
the month, increasing 11 points from 71.9 per cent of the
1923-25 average in January to 82.9 per cent in February.
The index for February, 1934" stood at 78.2 per cent. Distribution of merchandise during the first two months of 1935
was 7 per cent greater than in the same period last year.
Retail
Trade
Preparing for the usual movement of spring merchandise,
a seasonal increase of 12.4 per cent over the previous month
was reported in inventories held by reporting stores on
February 28. Stocks were also 6.8 per cent greater than a
year ago. The rate of stock turnover thus far this year was
.4,6, which is the same as reported for January and February,
1934,.
Collections by department stores on open accounts during
February were considerably smaller than a month earlier,
while installment account collections showed little change.
The ratio of February collections on open accounts outstanding on February 1 was 37.1 per cent, which is the
same as that recorded for February, 1934" but compares
with a ratio of 40.7 per cent in January this year. The
decline from the previous month was partly seasonal in
character.
BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
February, 1035, compared with February, 1034 . . ... . .. . ...................... . . .
February, 1935, comparod with January, 1035 .............. . ..... ... ... . ....... . .
January 1 to dato compared with same period last year ... .... . .. .. ......... ..... .
Credit sales (percentage):
February, 1035, compared with February, 1034 .... . . .... . ........... .. ..... . .. ..
February, 1035, compared with January, 1035 ..... . ... ..... .. .... .... .. . .. . . .. . .
January 1 to date comparod with same period last yonr .......•... . ..... ....... . ..
Stocks on hand at end of month (percentage):
February, 1935, compared with February, 1934 ........ . ... . ...... ..... . ....... . .
February, 1935, compared with January, 1935 . ........ .. . . .... . ............. . .. .
Stock turnover (rate):
Rate of stock turnover in Fehrunry, 1034 ........................ . .. . ........... .
Rate of stock turnover in February, 1035 .. ........... . ........... .. . ...... .... ..
R.te of stock turnover January 1 to February 28,1934 ...... . ....... . ........ , ' "
Rate of stock turnover January I to February 28, 1035 .......................... .
Ratio of February co11cetions to open nccounw receivable ouwtanding February I, 1035 .. .
Ratio of February collections to installment accounw receivable ouwtanding Feb. I, 1935 ..
IndexCil of department store sales:
Unadjusted-January, 1935 .. . .. .... . ............... . ................ ..... ... .
Unadjusted- February, 1935 ..... . . ......................... . ................. .
A~usted-January,
1035 ......... .. .......................................... .
Adjusted-February, 1935 ........................................... . ........ .
Indexes of department store stocks:
Unadjusted-January, 1935 ............. . ..... . ..... .. ..... . .. . ..... . ..... . . ..
Unadjusted-February, 1935 ....... . ...... ... .......... .... .... .. . . ........... .
*~I~:~=~~':::~y,I~~~i;'::::::::::::::::::::::::::::::::::::::::::::::::::: :
Dallas
+10 .0
+14.7
+10 .2
+13.4
+17.3
+13.2
+ 6.8
+15.0
Fort Worth
+ 3.1
+ 5 .5
+ 3.0
+ 5.3
+ 8.1
+ 5.0
- 1.3
+10.6
Houston
.7
San Antonio
Others
Total District
-+13.1.1
+11 .7
+ 4.8
- 3 .U
+ 4.3
+ 6.5
+ 4.2
+ 7.0
+ 4.1
- 7.4
+ 5.0
+10.7
+ 4.0
+18 .1
+10.2
+1.D
+ U. 6
+11.3
+ 7.5
+ 11 .2
+10.5
+11.7
+20.1
+11.5
+3.4
+10 .8
+ 6.8
+12.4
--
4.0
+1.7
.57
38 .1
15 .6
.18
.19
.37
.33
28.8
10.3
.23
.21
.46
.42
37.8
.26
.24
.S3
.51
42 .8
63.1
70 .3
73.4
00.1
60 .0
68.6
81.1
82 .7
64.0
68 .3
72.6
80.4
54.8
60 .4
60.2
72.8
60.4
69.6
71.0
82.U
44.2
62.0
50.8
64.2
58.8
65 .1
68.4
67.8
42 .8
40 .6
49 .8
50.1
45 .0
46 .8
48.0
40 .3
40 .8
55.7
57.2
58 .0
.20
.30
.54
.18
.10
.38
.3U
36.0
lU .O
.23
.24
,.46
.46
37.1
13 .8
MONTHLY BUSINESS REVIEW
Commercial
Failures
Although the business mortality rate in
this district during February increased
over the previous month and was also
some:vhat higher than a year ago, a decline from both com~aratlv~ months was reflected in the total liabilities of
efaultmg firms. Figures released by Dun & Bradstreet, Inc.,
3
showed a total of 28 insolvencies in the Eleventh District,
as compared with 24 in January, and 26 in the corresponding month last year. The indebtedness of defaulting firms
during the current month was $315,366, as compared with
$4,05,333 in the preceding month, and $366,937 in February
a year ago.
AGRICULTURE
Crop Conditions
The general agricultural situation showed
considerable improvement during the
past six weeks. The favorable temperatures and open weather prevailing during much of the period
enabl;d farmers to proceed rapidly with the preparation
of SOlI for spring plantinO' and the general rains added to
the subsoil moisture suppl~. In much of the western portion
f tl~e district, however, there is an accumulated moisture
efiCIency and more rains in the near future would be very
~enefiCial. The planting of corn is practically completed in
outh Texas and is well under way in Central Texas. Cotton
planting has begun in the southern part of the State.
d
J Small grains have shown a rapid recuperation from the
anuary freeze and are in fair to good condition in most
~arts of the district. While the dust storms in February
ilimaged a portion of the wheat crop in northwest Texas,
e e&rly crop had developed a deep root system which
enabled the plants to withstand the effects of shifting soil
and the subsequent rains have stimulated plant growth.
Commercial truck crops in South Texas received another
Fet~~ck as a result of the heavy frosts in the last days of
e .1uary. Much of the spring plantings of tender vegetables
b'elj: bladlY.damaged and in some instances replantings will
e 19lt. YIelds on most crops will be reduced. According
~o tte Department of Agriculture, the March 1 condition of
Uc crops was very low. Shipments of truck from South
b exashhave been sharply reduced since the January freeze,
ut t e smaller volume has been partially offset by high
prices.
T
CONDITION OF COMMERCIAL TRUCK CROPS IN TEXAS
Crop
Carrola
~l",;:::::::
Mareh 1,
1935
(Pcr cent)
50
40
30
43
20
40
27
60
25
March 1,
1934
(Per eent)
70
63
84
February 1,
1935
(Per cent)
40
37
50
9S
83
77
89
75
81
37
Livestock
Noticeable improvement m range and
El
livestock conditions over much of the
. eventh Federal Reserve District occurred during the past
~l~ weeks due to the favorable weather and widespread
lams. The best conditions obtain in the eastern and southern portIons
·'
of rTexas
.
' southeastern Arizona , and western
NewM
eXICO. In eastern New Mexico and in west and northwest. Texas range and livestock conditions are very poor as
hrecIPitation has been light and cool winds and dust storms
ve
. been detrimental to ranges and small grain pastures.
of C;re has been considerable rainfall in the Big Bend area
'll xas , but due to the long drouth much more moisture
WI I e needed to insure spring and summer grazing. Most
o t le sheep and goat area has received moisture and warm
weather IS
. nee dedtobl'Ing
'
out the weeds and grass. Never-
b
The condition of cattle ranges in Texas, as reported by
the United States Department of Agriculture, improved 6
points during the month and the March 1 rating of 53 per
cent of normal compares with 69 per cent a year ago. Sheep
and goat ranges were estimated at 55 per cent of normal
on March 1, as compared with 46 per cent on February
1, and 64 per cent on the same date in 1934,. The condition
of cattle rose from 58 per cent on February 1 to 61 per cent
on March 1, but the latter figure was 10 points lower than
a year earlier. The condition of sheep and goats rose 6 and
5 points, respectively, during the month, but in each instance, the condition figure on March 1 was 3 points lower
than on the same date last year.
The report of the Department of Agriculture relative to the number and value of
livestock on farms as of January 1, 1935,
reflects a noticeable decline in number and an increase in
the value per head for animals in states attached to the
Eleventh Federal Reserve District. Reflecting the effects of
the 1934 drouth and purchases by the Federal Surplus Relief
Corporation, the number of cattle and sheep on farms in
Texas and New Mexico was sharply reduced. There was a
substantial reduction in the number of hogs in all states.
There was a general rise during the year in the value per
head of all classes of livestock. The number and value of
livestock on farms in Texas, Louisiana, and New Mexico as
of January 1, 1935 and 1934, are shown below:
Livestock
on Farms
NUMBER AND VALUE OF LIVESTOCK ON FARMS AS OF
JANUARY 1, 1935 AND 1934
31
68
SOURCE: Department of Agriculture.
Th
theless, there is a deficiency of subsoil moisture and additional rains over the whole territory would be very beneficial. Livestock in the 1934 drouth area are still in poor
condition and considerable supplementary feeding will be
necessary until range vegetation gets a good start. Prospects
for lambs are good in southeastern Arizona, but poor in
Texas and parts of New Mexico.
Toxna
Mules . .. . . ..... .
Horses ........ . .
Milk cows" ..... .
All eattle . ...... .
Swino ... . ...... .
Sheop .. ... . ... , .
Goala ... . . . .... .
Loui.iana
Mules .......... .
Horses ..... . ... .
Milk cows" ..... .
All cattle .. ..... .
Swino .......... .
Sheop ..... ..... .
Number
(000'. omitted)
1935
1934
931
060
712
727
1,388
1,461
5,392
6,740
1,226
1,830
7,152
8,179
2,400
2,910
171
100
297
872
560
137
176
90
286
830
632 '
137
Average Price
(per head)
1935
1934
$80.00
568.00
51.00
46.00
19.00
18 .00
13 .60
11 .70
5.00
3.40
3.40
2.90
1.15
1.35
83 .00
45 .00
24.00
14.70
4.90
2.70
70.00
40 .00
23 .00
13.00
3.90
2 .20
Total Value
(000'. omitted)
1935
1934
$74,223
$65,217
36,561
33,430
26,372
26,298
73,260
78,852
6,154
6,259
24,537
23,838
2,700
3,928
14,210
4,529
7,128
12,843
2,804
364
New Mexico
Mules..... ..... .
18
19
66 . 00
54.00
1,184
Horses........ ..
108
114
40 . 00
39 .00
4,324
Milk eows· . .....
65
75
27 . 00
25 . 00
1,755
All cattle .. , . . . . .
1,050
1,445
15 .80
14.20
16,552
Swine...........
34
58
4.80
3 . 60
162
Shcop.. . ........
2,460
2,757
3.80
3 . 20
9,356
·Cow. and bcifers two yenr. old and over being kopt for milk.
SOURCE: United States Department of Agrieulture.
12,240
3,930
6,578
11,380
2,461
304
1,022
4,434
1,875
20,544
211
8,803
MONTHLY BUSINESS REVIEW
4
Receipts of all classes of livestock at the
F ort Worth market reflected a sharp decline in February due in part to seasonal
factors. As compared with a year ago, the arrivals of cattle
and sheep were considerably smaller, but there was a slight
increase in the receipts of calves and hogs.
Movements
and Prices
The cattle market continued upward during the past
month and there appeared to be a strong undertone. At
FORT WORTH LIVESTOCKJRECEIPTS
(Number)
Cottle .......... .
Calves ......•...
Hogs ... .. .•....
Shccp ..........•
February
1935
23,920
14,040
20,996
12,054
February
1934
31,394
13,834
29,100
26,090
Change over
yonr
- 7,474
+ 206
+ 896
-13,042
January
1936
48,220
27,900
44,521
19,412
Change over
month
-24,309
- 13,809
-14,625
- 7,358
most times there was a scarcily of quality offerings and
those which appeared met with a strong demand at higher
prices. The hog market rose rapidly in February and
reached a top of $9.60 during the first week of March.
Subsequently the market reacted somewhat. Despite the
small receipts, the demand for sheep and lambs has been
quiet and prices have tended slightly downward.
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
Beef steors .......... .. " . .. . . . .... .. .. .. .
Stocker steors . ...... " .................. .
Heifers and yonrlings ....... . ............ .
Butoher cows ........ .. ...... . .... .... .. .
Stoeker cows ..... . ...................... .
Calves .. . .............................. .
Hogs .. . ................... .. . . .. . ...... .
~~:f,e::::: ::::::: :::::::::: ::::::: ::: ::
February
1935
Sl2.00
7.25
11 .00
5.50
"8:00
8.86
5.50
7.76
February
1934
$5.10
4.50
5.86
3.25
5:00
5.00
4 .75
8.75
January
1935
$8.26
5.00
9.75
4.75
0: 75
8.25
5.00
8.25
FINANCE
The demand for Federal reserve bank
credit increased somewhat during the
past month. At the middle of March,
there were seven banks borrowing $119,000 from the Federal Reserve Bank, whereas a month earlier
there were two banks borrowing $37,000. On March 15,
1934, the indebtedness of six banks totaled $66,000. Industrial advances by the Federal Reserve Bank to established
industrial and commercial businesses for working capital
purposes increased from $1,321,000 on February 15 to
$1,4.52,000 on March 15. This bank's holdings of bills purchased in the open market and of United States Government
securities remained unchanged during the period. The reserve deposits of member banks reflected an almost steady
decline during the month, the total on March 15 being
$126,233,000 as compared with $14,0,583,000 a month
earlier, and $126,4.27,000 on the same date last year. Federal
reserve notes in actual circulation on March 15 amounted
to $4.8,155,000 which was $189,000 greater than on February 15, and $6,986,000 larger than a year ago.
Operations of
the Federal Reserve Bank
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
Total cash reserves . . ............. . ...... .
Discounts ror member bonks .. .. ......... . .
Industrial advances ...................... .
Bills bought in the open market ........... .
United States sccuritIes owned ............ .
Other investments ...... ................. .
Total onrning assets . .................... .
Member bonk reserve deposits ............ .
Federal reserve notes in actual circulation .. .
Federal reserve bank notes in actual eirculation . ............................... .
March 16,
1935
115,302
119
1,452
143
71,475
5
78,194
120,233
48,155
Nono
March 15, February 15,
1934
1935
100,333
127,800
37
06
1,321
None
9,392
143
71,475
71,475
None
NOlle
72,076
80,933
140,683
126,427
41,169
47,966
4,855
None
The investments and deposits of member
banks in selected cities reflected a moderate improvement between February 13
and March 13, but loans declined seasonally during the same period. Investments
in United States securities totaled $165,876,000 on March
13, which was $768,000 lower than a month earlier, and
$8,080,000 below those on the corresponding date last year.
Holdings of other slocks and bonds were increased $1,797,000 during the four-week period and were $15,175,000 in
excess of those a year earlier, Loans on securities reflected
Condition of
Member Banks
in Selected
Cities
a decline of $412,000 between February 13 and March 13,
and on the latter date were $10,244,000 less than on March
14., 1934,. "All other" loans (largely commercial) evidenced
a further seasonal recession of $2,457,000 in the four weeks,
but the total on March 13 was $7,945,000 above that a year
earlier. The net demand "deposits of these banks rose to
$321,047,000 at the end of the period and were $32,898,000
larger than on the corresponding date in 1934,. Time de·
posits totaled $122,498,000 on March 13 as compared with
$124,,675,000 on February 13, and $120,681,000 on March
14 last year.
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In theusands of dollars)
United States seourities owned ... .. . .. . ... .
All other stooks, bonds, ond seourities owned .
108118 on Boonritics . ..................... .
All othor loans .................... . ..... .
Totnlloans .......................... . .. .
Net demand deposits .................... .
Timo deposits ........................... .
Reserve with Federal Rescrve Bonk ...... . .
Bills payable and rediscounts with Federal
Roserve Bank ........................ .
Maroh 13,
1935
S165,876
67,437
49,067
135,429
184,486
321,047
122,408
83,495
Nono
Maroh 14, February 13,
1034
1935
$173,066
$106,044
52,262
05,640
59,301
40,469
127,484
137,886
187,355
186,786
288,149
315,608
120,081
124,675
82,004
85, 130
Nonc
Nono
Acceptance
Market
Outstanding acceptances executed by
banks in the Eleventh District were in
larger dollar volume on February 28 than
they were a month earlier, the increase being contrary to
seasonal. The amount outstanding was also greater than on
the same date last year. The total amount reported by
accepting banks as of the close of February was $1,667,4.57,
as compared with $1,452,967 on January 31, and $1,646,029
on February 28 a year ago. Acceptances based on import
and export transactions reflected a moderate decrease during the month, while those executed against the domestic
shipment and storage of goods rose from $1,284,,871 on
January 31 to $1,535,804 at the close of February.
Deposits of
Member Banks
A substantial expansion in net demand
deposits at both reserve city and country
banks in the Eleventh Federal Reserve
District brought the combined daily average of net demand
and time deposits of these banks during February to the
highest point reached in four years. This average amounted
lo $806,280,000, as compared with $786,895,000 in the
MONTHLY BUSINESS REVIEW
6
prev.ious month, and $728,463,000 in February last year.
~n In.crease over January, which was reflected in the time
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands oC dollars)
epOSlts of country banks, was largely offset by a decline
at reserve city banks.
Abilene.........
Austin . .........
Beaumoat.......
Corsioana.......
DalJaa..........
EI Paao.... . ....
Fort Worth......
Galveston.......
Houston.........
Port Arthur.. .. ..
Roswell.........
San Antonio.....
Shroveport. . . . . .
Texarkana·......
Tucson..........
'l'Yaloeor '.., ......... .......
WI
Wichita Falls....
DAlLY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands oC dollars)
Combined Total
Rosorve City Banks
Country Banks
-------
Net demllnd Time Net demnnd Time Net demand Time
deposita deposita deposita deposita deposita deposits
Feb" 1034
Mar., 1034'····· $532,717
535,355
~>ril, 1034:::::: 523,307
Ju~~:
July,
Aug.,
SePt.,
Oct"
Nov"
m: .... ..
1034 .... ..
1034······
1934······
1034 · '····
1034 ......
Dee" 1034·· · ··'
Jan" 1035 ......
Feb" 1035::::::
510,000
510,405
521,333
527,054
557,318
583,558
596,441
507,045
590,459
000,125
$195,740
102,700
192,548
192,030
102,712
107,000
100,825
104,215
194,618
190,512
195,380
196,436
107,155
$201,770
203,201
257,038
253,752
256,450
255,210
200,001
275,831
287,250
292,685
280,905
270,110
280,057
$110,348
108,385
107,615
108,146
100,597
112,032
111,551
109,110
109,459
111,082
111 ,030
113,255
112,580
$270,047
272,004
205,550
262,338
203,000
206,123
206,008
281,487
296,308
303,756
310,080
311,a40
310,108
$85.308
84,381
84,033'
84,684
83,115
85,058
85,274
85,105
85,159
85,430
83,750
83,181
84,560
Debits to
IndiVidual
Accounts
Debits to individual accounts at banks in
18 principal centers in this district
totaled $581,4.54,,000 during February,
which represents a seasonal decline of 5
per cent as compared with January, but a gain of 11.5 per
cent as compared with February, 1934,. The gain over a
it~:r. ago. ~as ~h.e largest reported i~, four ~onths .. All of
1 epol tmg CItIes except three partICIpated m the Increase
OVer last year.
February
February
1035
$ 5,748
31,074
18,032
2,554
161,022
10,300
02,114
10,160
128,689
5,444
1,047
52,040
26,766
4,846
7,880
0,040
12,650
11,042
1934
$ 5,384
18,501
15,638
2,527
148,304
17,151
51,506
10,640
123,476
4,017
1,007
44,005
26,700
4,740
7,204
7,004
11,586
0,880
Percentage
change over
year
January
1035
$ 5,782
24,261
10,253
2,040
170,457
18,807
62,420
22,700
130,151
5,002
2,417
01,533
20,350
5,037
6,020
0,014
13,160
11,808
+ 0.8
+71.2
+21.1
+ 1.1
+ 8.5
+12.0
+20.4
- 2 .4
+ 4.3
+ 10.7
- 2.5
+10.5
-.1
+ 2.0
+ 9.4
+14.4
+ 0.2
+11. 7
Percentage
change over
month
-.6
+30.0
- 1.7
-13,1
- 5.5
+ 2.7
-.5
-15.6
- 7.5
- 8.7
-19.4
-14.5
- 8.8
-14.0
+13.7
- 6,0
- 3.0
- 6.5
Total....... 5581,454
$521,378
+11.5
$012,211
- 5.0
·Includes tho figures oC 2 banks in Texarkana, Arkaosaa, located in tho Eighth
Distriot,
The savings deposits reported by 125
banks in this district that operate savings
departments totaled $148,336,567 on
February 28, which compared with $14,7,297,781 a month
earlier, and $133,954,652 on the same date last year. The
percentage increase during February amounted to 0.7. There
were 324,782 savings depositors at 114 of these banks on
the last day of the month, as against 322,287 on January
31, and 313,073 at the close of February, 1934.
Savings
Deposits
SA VINGS DEPOSITS
Fobruary 28, 1035
Numbcr oC
reporting
Beaumont
D
11
....... . •.....•..
EtP':!'····,·,····· ···,··,
Fort Worth" " .. . •... . , .. ,
Galveston ...... , ..... , ... .
1I0uston ....... .. ..... ..
1'0rt Arti· .......... · .. · .. ·
San Anto~ti~' .. . ...... . .•..
~rovoport.:::::::::::::: :
noo ..
Wichita·F·liti · ··' · ,···· · ·· .
All oth a ............. .
ors . . , ............ ..
banks
3
O·
2
3
4
ll o
2
O·
3
3
3
76·
February 28, 1034
January 31, 1935
Number oC
Amount oC
Number oC
Amount oC
Percen tage ohango
Numbor oC
Amount oC
Peroentage chango
dopositors
dcposita
depooitors
deposita
savings doposita
depositors
dOPOSlta
S 3,002,715
+14.3
7.1
+22.0
8.9
- 2. 1
+10.4
+11.1
+ 17.7
8.6
+11.6
2,2
+16 .7
savings deposita
+ .5
+ .4
+ .8
savings
8,814
70,831
11,019
34,509
10,844
65,486
5,288
17,252
20,900
11,024
5,069
40,946
savings
5 3,534,852
26,237,046
5,215,358
10,814,889
0,016,207
30,304,475
2,000,516
10,344,660
11,155,076
6,422,807
2,802,749
24,527,023
savings
8,215
74,050
10,355
32,713
16,504
65,765
4,870
15,328
21,401
10,425
5,070
47,678
savings
over year in
+
+
23,572,490
4,244,271
0,932,838
10,126,813
27,449,771
1,854,250
13,891,607
10,271,897
5,755,888
2,743,313
21,018,781
+
+
MARCH DISCOUN'r RATES
nater~~:rged t"'ls~omers
on prime oOlllllleroial papor Buch aa that now eligible Cor
nate oha;O~1
uy Or tho Foderal Resorve Aot ..... , ........ . ......... , ......... .
nato on Ig On oans to other banks scoured by bills rooeivablo.... . ... , , ........ .
inolud9ansl sooured by. prime stook oxohango or othor ourront collateral (not
IngoOano placed III other markets through correspondent banks):
TI:~~d.:::::::::::::::::::::::::::::::::::::: : :::::::::::::::::
-
Uate char ed
~te on c:ttleOI~;~~~~~.i~~ .p~p~r. ~~~r.~, ~:. ~~r~~l.o~~~. ~~~ip~, .~t.c: : : : : : : : : : : : : : :
savings
Bavin~8
over month in
8,703
75,053
11,732
34,285
16,687
64,972
6,229
17,140
20,872
10,079
5,049
40,717
S 3,516,044
322,287
$147,297,781
25,132,180
5,172,802
10,670,437
0,016,923
29,053,476
2,040,684
16,322,120
10,047,214
6,562,720
2,012,000
24,130.064
+1.3
0.0
+1.2
+
+
.7
.1
+1.0
-2.1
-3.8
+1.6
+ .7
Prevailing rates:
Houston
San Antonio
4-7
5- 0
5-0
3-6
6
6
5Y..-6
5-10
5-10
6-8
6-10
5-7
4- 7
3-7
7-10
6-8
6- 8
6-8
8- 10
6-8
6-8
5-0
7- 8
Dallaa
EI Paao
4- 6
6-8
5-0
3~-6
6-8
6-8
8
6-8
6
6
6-8
1~-0
o
Fort Worth
Waco
INDUSTRY
Cottonseed
Declines of a seasonal nature were reProducts
flected in the operations of cottonseed oil
U 't d
mills locatea in both Texas and the
m e Sta tes during the past month and activities remained
on a scale
h I
h
' h'
.
year a
, mu.c owel: ~ ~n 1I~ t e cor~'espondmg ~onth ~
ti
fO. Feb! uary actlvlLJes dId not aflect thc relatIVe POSIon 0 the various functions performed by the cottonseed
oil industry for the season as a whole; the receipts and
crushings of seed and the production of all products during
the first seven months of the current cotton year continued
substantially below those in the same period of the previous
year with the exception of the output of linters at all United
States mills. Stocks of cottonseed oil held by crushing
establishments on February 28 were considerably below
MONTHLY' BUSINESS REVIEW
6
those a month earlier ' and a year ago, while supplies of cake
and meal, hulls, and linters evidenced an increase over the
holdings on February 28, 1934.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Tcxll8
United States
August 1 to February 28 August 1 to February 28
Tbis SellSon Last season This SellSon LMt seMon
CottOll8eed received at mills
1,247,127
3,270,701
3,854,600
(tOM) . . . ....... . ..........
606,673
3,333,700
1,115,254
2,027,623
718,687
CottOll8eed crusbed atons~ .. . ..
Cottonseed on ban Fe. 28
741,321
230,659
574,739
(tons) . .. . . . . . .. . . . . . . . . . . .
80,647
Crude oil produced (pounds) ... 206,188,741 329,460,064 904,325,490 1,031,305,607
517,635
1,327,631
1,505,008
Cake and meal produced (tons)
339,627
755,440
888,268
306,950
Hulls produced (tons). . . . . . . . .
190,484
Linters produced (running
650,381
618,337
152,395
185,093
bales) .... . .............. . .
Stocks on band February 28:
Crude oil (pounds) ....... . .. . 13,104,855 42,114,550 45,564,941 133,741,745
289,156
83,354
71,443
346,876
Cake and meal (tons) ..... , ., .
80,745
50,022
40,076
180,050
Hulls (tons) . . . . .............
142,118
32,698
106,002
56,111
Linters (running bales) ........
The consumption of cotton during February at textile mills located throughout
the United States was in slightly larger
volume than in February a year ago, but on the other hand,
a decrease somewhat larger than seasonal was reflected as
compared with the preceding month, Consumption during
February totaled 478,291 bales, as against 54,6,787 bales in
January, and 477,046 bales in February, 1934" During the
seven-month period ended February 28 consumption at these
mills aggregated 3,152,892 bales, as compared with 3,4.00,277 bales in the corresponding period of the previous season.
Stocks of cotton held at the close of the month were again
below those a month earlier and a year ago.
Textile
Milling
Activities at reporting Texas textile mills showed a general slowing down during the past month. Both the consumption of cotton and the production of cloth were in
smaller volume than in either the preceding month or the
same month last year, and the demand for finished products
as measured by orders on hand at the end of the month, was
less than at the close of either comparative month. Stocks
of cotton goods on hand February 28 were greater than on
January 31 or on February 28, 1934,.
in the first seven months of the previous season. February
cotton receipts at both concentration points were seasonally
smaller than in January, and remained considerably below
those last year. Stocks of cotton held at these ports on February 28 were less than the holdings a month earlier or a
year ago.
Total foreign exports of American cotton during February remained on the low level that has prevailed throughout the current season. Shi pmen ts during the month
amounted to only 390,294, bales, which compares with
465,711 bales in January, and 628,457 bales in February a
year ago_ The decrease from the previous month was seasonal. Exports during February this year were considerably
below the average for that month, and were the smallest
for any corresponding month since 1923. During the first
seven months of the present season shipments amounted to
3,254,,832 bales or 4.1.3 per cent less than in the corresponding period of the 1933-34, season. The largest declines in
exports of domestic cotton during the current season as
compared with the previous season are as follows: Germany,
77 per cent; France, 57 per cent; China, 55 per cent; and
the United Kingdom, 48 per cent.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
Receipts ................. .. . .
Exports .................... .
Stocks, February 28 ..... . ... .
February
1035
41,S80
108,044
February
1934
106,511
23S,174
August 1 to February 28
This SellSon LMt seMon
866,2S1
1,854,523
043,246
1,600,828
534,348
680,602
COTTON-GALVESTON STOCK STATEMENT
(Bales)
For Great Britain .... . .... .. . . .. . ....... . ...... . .... .
For France ...... .. .. . ..... ... ...................... .
For otber foreign porlB .. ..... .. ... . ..... . ....... . .... .
For ceMtwise porlB . ... . ... . ........... . ............ .
In compresses and depolB ........... .. ..... . . . ... .. ... .
Feb. 28,
1085
3,300
1,300
16,300
1,000
512,248
Feb. 28,
1034
6,000
S,OOO
38,500
3,500
633,692
Total. . . ........ . .............. .. .. . ..... .
534,348
680,602
COTTON CONSUMED AND ON HAND
(Bales)
Cotton-growing states:
Cotton consumod... . . . . . .. .
Oa band February 28 inCcnsuming establisbmcnts.
Public storage and compresses ............... .
United States:
Cotton oonsumed.. . . . . . . . .•
On baad February 28 InConsuming establisbmelllB.
Publio storage and oompresses ............... .
February
1035
February
1934
3S0,643
375,100
478,291
477,046
August 1 to February 28
Tbis SellSon LMt seMon
2,521,654
2,714,141
927,702
1,302,358
8,166,905
8,271,026
3,152,802
3,400,277
1,161,117
1,656,776
8,373,059
8,636,506
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
RcceiplB .. .. ....... . .. . ..... .
ExporlB .................... .
Stocks, February 28 . .. . .. ... .
February
1035
36,814
96,396
Fobruary
1034
SO,332
176,9S1
August 1 to February 28
Tbis seMon LMt BeMan
092,233
2,071,407
841,170
1,775,577
876,B15
1,300,260
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORT8-(Bales)
The exports of cotton from the port of
Houston during February continued in
substantially smaller volume than a year
ago, and the decrease from the preceding month was somewhat larger than usually occurs at that time. On the other
hand, exports from Galveston, while remaining below those
in the like month a year ago, evidenced a contrary to seasonal increase over the January shipments. Exports of colton
during the current season continued materially below those
Cotton
Movements
August 1 to February 28
This BeMan LMt seOBon
ReceiplB.... .. . . . . .. . . . . .. . .. . . . . . . •. . . . . • . . . . . •. . . .. 2,949,664
6,514,618
ExporlB: United Kingdom. . . . .•... .. . . .. . . . . .. .. . . . ..
506,032
071,945
Franco............................ . . ..... . .
274,9B2
632,9S0
Italy.......................... .......... ...
308,1BO
488,103
Germany.. . . . . . . .. .. . . . . .. .. . . .. . . . . .. .. . . . 233,216
1,023,127
Otber Europe............ ...... .......... ...
50B,775
710,742
Joron...... .......... ... ............ .. ..... 1,157,50B
1,322,630
AI otber countries... . . . . . . . . . . . . . .. . . .. . . . . .
265,239
39B,371
§~~~:hcl~~£~fIIBUI;it.;J 'St'a'too 'p~"~: Feb'r~a~y' 28: :::::: ~:m:~~
3:~g:~~I
7
MONTHLY BUSINESS REVIEW
fields, except Central West Texas, the major increase was in
East Texas. Daily average production in New Mexico and
North Louisiana was slightly lower than in the previous
month.
SPOT COTTON PRICE8-(Middling Dnsis)
(Cents per pound)
New York
~~~~1~t . : :·: : ·:. ~::::::. ~.:::: ~
. Februnry, 1935
High
Low
12.80
12.45
12 .79
12.48
12.35
11.05
12 .85
12 .45
12 .85
12.45
March 15,
1935
11.50
11 .33
11 .05
11 .45
11 .40
FEBRUARY DRILLING RESULTS
Norlh Texas ............ . ..
Central Wesl Texns ....... ..
East Texas . . . . .. ....... ...
South Toxas . . ........ .....
Toxas Cons tal ..............
PetroleUln
TlIe output of petroleum in the Eleventh
409
. Federal Reserve District amounted to 30,' ,4,00 barrels In February as compared with 33 331 200
'
, ,
ban I . J
193; s In anuary and 27,384,,000 barrels in February,
. . The decline between January and February was due
~~tde.ly to t~e shorter m~nth as .th~re was a .moderate. gain
. ally avelage productIOn. DrIllIng operatlOns contmued
actIve, there being 806 wells completed during the month
a\ compared with 807 in January. Successful producers of
~I3 totaled 585 wells, with initial production amounting to
barrels, as compared with 556 wells in January
ll1a <Ing a test yield of 1,959,4,69 barrels.
1'otal Toxas .....
Now Mexico ............. . .
North Louisiana ............
Fobruary totals, distriet ... ..
Jnnuary totnls, dlstriet .... . .
-
OIL PRODUCTION-(Barrels)
North Texas
Cenlral West T~ .............
xas ...........
East T
Soutb ,~xas .............. .. ..
Toxas Cex~ '1' . . . . .. . ... .....
OM n ....... . ....... .
February, 1035
Totnl
Dnily Avg.
3,326,400
118,800
4,026,600
175,050
13,626,200
486,650
1,654,800
S9,100
4,910,600
175,700
Increaso or deorease over
Jnnunry, 1935
Total
Daily Avg.
- 264,050
+ 2,950
- 600,600
- 5,250
- 1,130,100
+10,350
- 107,550
+ 2,250
- 474,400
+ 1,700
----1,016,200 -2,670;600
46,950
153,250
~~~bM~~~r:::~.'~~~~·:·:,:,:::
22,900 01,950
Total Distriet ... . .. 30,409,400 1,086,050 - 2,021.800
---
28,453,600
: 1,314,600
641,200
'-
--+12,000
400
-- 750
--+10,850
-
'l'otnl . . .•
Fobruary, 1034
-- -S - - - No.
Amarille ... .
'"
AUstiu
Beautno;lt····· .
CO,/,U8 Ch~i~ti . .
Dal
..
Elpll8 ·· .......
Fort'Worth···· .
Galv09ton .....
Rouston ......
Port Arthu'~' ...
Saa Antonio' ..
ShroVel)Ort ....
Wnco..
.. ...
Wicbita 'Fuli';: : :
"-
18
19
-806
807
Fail-
Gns
Wolls
5
4
1
0
3
Initial
produetlon
30,500
158,300
2,070,402
24,541
18,950
urea
50
35
11
52
28
---19- -182- 2,311,783
~
568
10
7
1
2
7
10
32
210
37,500
355
-585- -22- -199556
---
2,349,728
1,059,469
r
Toxas COll8tal (34 gr. and abovo) ..... . .... . ..... . ... . ..
and above) .. . . . .... . ......... . ....
Norlh Texas (40
North Louisiana 40 gr. and above) .....................
March 8,
1935
$1.12
1.03
1.08
March 9,
1934
$1.12
1.03
1.03
(Oil statistics oompiled by "The Oil Weekly" , Houston, Texas)
Building
While the number of construction permits
issued at principal cities in this district
during February was about the same as in the previous
month, their value showed a sharp decline from the high
January total. The compar i sons with the corresponding
month a year ago, however, continued to show substantial
increases in both the number and valuation of permits.
There were 1,4,57 permits issued during February with a
total valuation of $1,503,4408, as compared with 1,4<51 permits in January, amounting to $3,501,663, and 1,135 permits in February a year ago, which aggregated only
$696,64.2 in valuation. Construction activity during the first
two months of 1935 showed an increase of 243.5 per cent
over that in the like period of 1934.
BllLDING PERMITS
Fobruary, 1035
-
-760-
Pr<>duceTS
110
85
316
03
44
CRUDE OIL PRICES
, t?,728
The daily average yield of Texas fields totaled 1,016,200
Ilanels wI . I
12,000 barrels greater than in the previous
,
lIC 1 was
mon~ and 107,950 barrels above that in the corresponding
mon of] 934,. While gains were registered in all Texas
.-
Completions
171
74
328
121
75
20
121
03
47
383
30
00
101
197
51
128
150
16
21
Valualion
10,307
176,590
11,270
23,487
225,470
42,390
49,400
200,658
443,179
31,247
45,24 1
148,507
13,834
69,859
No.
vnluRtion
over yom
Valuatiou
0 $ 5,083
40
20,300
10,335
68
28
17,335
322
153,150
32
38,905
82
40,000
80
36,278
174
252,405
54
12,080
128
68,000
88
20,715
13
8,007
2,160
8
-- - - - - - - - 1,457 $1,503,448
1,135
Pereentage eballge
$696,642
January, 1035
No.
+102.8
+502.7
+ 38.1
+ 35.5
+ 47 .2
+ 0.0
+ 23.5
+477 .0
+ 75.5
+140.6
- 34.4
+616.0
+ 55.3
.
+115.8
--1,451
-$3,501,663
- 51.6
- 80.8
- 70.8
- 34.0
- 40.6
+172.5
- 87.0
+730.4
- 15.0
+ 26.0
- 78.0
+144.8
- 52.7
+631.4
57.1
Valualion
40 $ 31,611
252
1,012,303
63,135
185
50,568
03
005,069
734
57,047
66
428,889
176
183
234,006
064,614
416
01
55,875
250,427
306
209,170
277
43,088
39
79,410
41
2,008
$5,005,111
Pereenlage ehange
valuation
over period
1034
1035
No.
Valualion
29 S 21,304
131 1,735,803
92
48,865
46
36,081
351
370,500
27
15,557
86
370,480
82
25,248
210
521,435
40
24,628
178
214,186
127
60,672
23
29,254
20
0,551
January 1 through Fobruary 28
Percentage ehange
valualion
over month
No.
Valualiou
31 S
105
125
47
600
67
157
175
301
80
228
178
28
15
2,230
67,037
60,088
20,885
80,250
325,023
62,041
97,{20
57,150
412,020
22,803
138,437
60,584
35,054
15,485
$ 1,456,936
-
.
53.5
+202.3
- 25.8
+ 85.6
6.6
+340.2
+311.0
+133.6
+145.0
+ 87.4
+245.6
+ 22.0
+412.8
-
+243.5
-Inoreaso Ovor ono thousand per cent.
Cement
A reduction in actIVIty at Portland
in . F .
cement mills in Texas was witnessed durw~. chebl uary. Total output was reported as 221,000 barrels,
003 ba ~?mp~res with 294.,000 barrels in January, and 280,d . nels In the corresponding month last year. Shipments
Unng the month totaled 229000 balTels being 4,.6 per cent
I ess
th . 1
'
,
vol an In tIe previous month, and 16.1 per cent under the
ume
but
pf a year ago. Stocks en hand declined somewhat
sam olld 1 e~ruary 28 were 4.5.7 per cent larger than on the
e ate In 1934.
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
(In tbousande of bnrrel!)
Porcentago
change over
Feb.,
1935
221
Produotion .1 Toxas mills .....
Shipments from Tcxas mills ...• 229
Stoeks at end of mouth at Toxas
717
mills .................... ..
Feb.,
Jan"
1934
1085
-21.1 - 24 .8
-16.1 - 4 .0
+45.7 -
1.1
January 1
through
Feb.28,
1935
515
409
Pereentngo
ohange over
yenT
+ 8.4
-12 .7
8
MONTHLY BUSINESS REVIEW
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Complied by the Federal Reserve Board. March 25. 1985)
In February industrial production increased by less than
the usual seasonal amount, following sharp advances in
December and January. Wholesale prices of many leading
commodities showed little change in February and declined
in the early part of March. Prices of livestock and meats,
however, advanced further in February and continued at
relatively high levels during the first three weeks of March.
DISTRIBUTION
Daily average volume of revenue freight-car loadings
a seasonal increase in February and little change
In the first half of March. Department store sales increased in
February! a month when there is usually little change, and
the combIned total for the first two months of the year was
larger than a year ago by 5 per cent.
~howed
PRODUCTION AND EMPLOYMENT
WHOLESALE COMMODITY PRICES
Daily average output of basic industrial commodities increased in February by an amount smaller than is usual at
this season and the Federal Reserve Board's index, which
makes allowance for seasonal variations, declined from 91
per cent of the 1923-25 average in January to 89 per cent in
February. At steel mills activity increased further during
the early part of February; later in the month and in the
first three weeks of March, however, activity declined, contrary to seasonal tendency. In the automobile industry production continued to increase and the output indicated for
the first quarter is larger than in the corresponding period
of any other year since 1929. Lumber production remained
at a low level. At textile mills activity in February declined
somewhat from the relatively high rate of the preceding
month. In the meat-packing industry output continued to
decline. Factory employment increased between the middle
of January and the middle of February by more than the
usual seasonal amount, reflecting substantial increases in
working forces in the automobile, machinery, iron and steel,
and wearing apparel industries and smaller increases in
many other lines. At meat-packing establishments employment continued to decline and at tobacco factories it
showed less than the usual seasonal growth. Payrolls at
manufacturing establishments also increased considerably in
February. In non-manufacturing industries employment and
payrolls showed little change. Total value of construction
contracts awarded in the period from January 1 to March 15,
as reported by the F. W. Dodge Corporation, was smaller
than in the corresponding period last year, reflecting a reduction in the volume of public projects. The value of contracts
awarded for residential building during this period showed
a slight increase over the low level of a year ago .
.During the period from the beginning of February to the
mIddle. of .l\;Iarch, there w~r.e wide. movements in prices of
many IndIvIdual commodItIes whIle the general level of
wholesale prices, as measured by the Bureau of Labor
Statistics index, showed little change. In the third week of
March prices of cotton and other textiles, grains other than
~heat, coffee, rubber and tires, scrap steel, and tin were consI~erably ~ower than at the beginning of February while
pnces of lIvestock, meats, and sugar were higher.
BANK CREDIT
During the four weeks ended March 20 member bank
reserve balances ~eclined .by $280;000,000, principally in
consequence of an Increase In Treasury deposits with Federal
reserve banks built up in connection with March 15 fiscal
operations. Excess reserves of member banks declined to
about $1,950,000,000. Demand deposits (net) of weekly
reporting member banks in leading cities increased further
by $380,000,000 during the four weeks ended March 13. The
balances of other banks with reporting banks increased by
$100,?00,000 while Government deposits declined, reflecting
the WIthdrawal of funds from depository banks. Loans and
investments of reporting banks increased by $275,000,000.
T~ere was. a ~urther growth ?f $85,000,000 in holdings of
dlJ'ect oblIgatIOns of the Umted States Government and 8
smaller increase in obligations guaranteed by the Government. Loans to brokers and dealers in securities increased
b~ $ 130,000,~OO while other loans showed little change.
Y~elds on Umted States Government obligations declined
slIghtly further, and open-market money rates continued at
a low level.
@FedFRASER