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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, 1936)

Volume 21, No.2

Dallas, Texas, April 1, 1936

-----

This copy is r eleased for pub·
lication in mOl'ning papers-

Apn'll

DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
February
1936

~ank debits to Individual accounts (at 18 cities) $681,834,000

Chnnge From

Jonuorr, 1936
9.7%
6.6%

.................... +

~partment store sales..............................................
rve bank loans to m ember banks at end
R 0 month ........................................................... _....... $
86.818
Be~iJ:ve bank I'atlo at end of month ....................
64.4 %
~I Ing permit valuation at larger centers. ... .. $ 7,720,868
Commercial failures (number) ............................... .
26
281,000
Oiltnmercial failures (liabilities) ........................... . $
Droduction (barrels) .......................................... ..
34,478,100

't

- $60,082
.6 Dointe
80.7%
18
- 17.1%
2.9%

+
+

Business and industrial conditions in the Eleventh Federal Reserve District continued generally favorable during
th~ past month. Sales at department stores in larger cities
e~ldenced a gain of 7 per cent as compared with the preVIOUS month, and were 16 per cent larger than in February,
1935. Distribution of merchandise in most reporting lines
of wholesale trade registered large increases over a year
ago, and in some lines the January lo February changes
~~r~ more favorable than usually occur at this season.
~ r,tIle debits to individual accounts at banks in principaJ
cIties were 10 per cent smaller than in January, they exceeded those of February last year by 17 per cent. Commercial failures in this district were fewer and the volume
of indebtedness was smaller than in either January this
year or February last year.
The valuation of building permits issued at leading cities
reflected an expansion of 81 per cent over that in January,

and was more than five times greater than the total for
February, 1935, due largely to extraordinary building activities in two cities although healthy increases were shown
in most of the other cities.
The agricultural and livestock industries are confronled
with a deficiency in surface moisture over a large area of
the district at a season when an adequate supply is needed
for planting operations and to stimulate the growth of small
grains and range vegetation. However, with a good subsoil
season obtaining over the major portion of the district,
the situation would show rapid improvement should widespread rains occur in the near future. According to the
March 1 report of the Department of Agriculture, range
and livestock conditions in this district are in about average condition and much better than a year ago.
The investments of member banks in selected cities showed a decline between February 12 and March 11, but the
reduction was partially offset by an increase in loans. The
daily average of combined net demand and time deposits
of member banks amounted to $771,136,000 in February
as compared with $782,745,000 in January. While Federal
Reserve Bank loans to member banks on March 15 were
larger than a month! earlier 01' a year ago, the volume of
such loans continued small. Federal Reserve notes in actual
circulation rose to $75,060,000 on March 15, which was
$2,555,000 higher than on February 15, and $26,905,000
above the circulation on March 15, 1935.

BUSINESS
Wholesale
Trade

While business at wholesale in this district during February was more active in
some lines than in others, the total volume of distribution compared favorably with that in the
previous month and continued on an appreciably larger
sc.ale than a year ago. Better than seasonal comparisons
WIth the month of January were evidenced in the case of
groceries, hal:dware, and drugs, and in the latter two lines
the February increases over the same month last year were
80~ewhat larger than those recorded in January. Inventones reflected gains during February ranging from 1.7
to 4.1 per cent. Material declines from the previous month's
volume were shown in the collections of all lines except
hardware.

The demand for dry goods at wholesale in this district
during February was spotty, being fairly good in some
sections but poor in others. There was a net gain of 2.5 per
cent in business over that of January, and the increase over
February, 1935, amounted to 6.1 per cent. Stocks on hand
February 29 were larger than at the close of the previous
month but continued substantially less than a year ago.
Collections during the month showed a further reduction.
Sales of drugs at wholesale by reporting firms in the
Eleventh District registered a smaller than seasonal recession of 3.3 per cent as compared with January, and were
23.4 per cent above those in February a year ago. In the
case of the latter comparison the percentage of increase

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

~2

-

______________________M~O_N_T_H_L_Y_B_U_S~I_N_E~S~S_R_E_V_IE_W
______________________--

was the largest reported since July. A decrease of 8.6 per
cent from the previous month was reflected in collections
during February.

the corresponding month a year ago. A substantial l'edu~.
tion in collections, which was not general, followed t e
expansion shown in the previous month.

Distribution of groceries through wholesale channels last
month was on a slightly larger scale than in January, but
a decrease of 2.4 per cent from the same month last year
was reflected. While jobbers in some parts of the district
indicated that there was a falling-off in activity during the
month, those in certain localities were benefited by an
increased demand for merchandise. Total collections in February were 1.4 per cent less than those in the preceding
month.

Retail
Trade

An improvement was shown in the wholesale hardware
business during February. Firms in this district reported
total sales 1.0 per cent larger than in the previous month
and 24,.0 per cent above those in the same month last year.
A general undertone of confidence was in evidence in practically all sections of the district. There was an increase
of 9.9 per cent in the volume of collections as compared
with January.
A decline of seasonal character was registered in the
combined sales of reporting wholesale farm implement firms
during February. Business was 21.6 per cent smaller than
in the preceding month, but 59.4, per cent better than in
CONDITION OF WHOLESALE TRADE DURING FEB'RUARY, 1986
Percentage of increase or decrease inNet Sales
Net Sales
Feb. 1936
Jan. 1 to date
compared with
compared with
February
January . ame period
1935
1936
last year

Grocerlea. ...............
Dry goods..............
Farm implements
Hardware ............
Drugs ....................

- 2.4
+ 6.1
+69.4
+24.0
+28.4

+.6
+ 2,6
-21.6
+ 1.0
- 8.8

- 1.6
+ 6.6
i64.8
21.8
22.7

Stocks
Feb. 29, 1936
camp. red wi th
Pcb. 28, Jan. 31,
1935
1936

- 1.4
-16.0
+74.0
+ 7.7
+22.6

+2.1
+8.4
+4.1
+8.6
+1.7

Ratio Feb.
collec tions
to accounts
and notes
outstand ing
J.n. 31

79.5
88.1
8.7
48.8
62.2

The business of department stores in
principal cities of the Eleventh District
reflected increased activity during Feb;'u,
ary. Conswner demand, as measured by sales of l'epor~lng
firms, evidenced a ~ain of 6.5 pe~ ce~t .over the prevlO~d
month, and on a dally average ~asls thIS mcrease .amoun t th
to 1104. per cent. As compared WIth the corresponding mon
of 1935 sales reflected an increase of 16.4 per cent. In con'
nection with this comparison it should be taken into co n
sideration that February this year had ~ve Saturdays anS
one more working day than was the case m February, 193 .
This bank's seasonally adjusted index of department store
sales stood at 91.2 per cent of the 1923-25 average for
February, as compared with 82.9 per cent in February a
year ago. Distribution of merchandise during the first tWO
months of 1936 was on a scale 15.6 per cent greater than
in the like period of 1935.

d

Inventories of merchandise on hand February 29 evidenced the usual preparation by merchants for spring b~Y'
ing. Stocks were 11.5 per cent greater than a month earhe '
and 3.2 per cent above those on hand February 28, 193 S.
The rate of stock turnover dming January and Febru~ry
this year was .52, as compared with .47 in the same pen od
of 1935.
Collections on regular accounts during February were
better than in either the previous month or the same month
a year ago. The ratio of February collections to regular
accounts outstanding on February 1 was 4.1.0 per cent, ~s
against 39.9 per cent in January, and 37.1 per cent 10
February, 1935. A slight decline from January was shown
in the collections on installment accounts.

BUSINESS OF DEPARTMENT STORES
Total sales (percentage) :

~:~;~:;~: m~: ~~~~~:~ :l:~ r:~~~~~~\~~~~:::::::::::::::::::::~:::::::::::::::::::::::::::::::::::::::::::::::::::::

January I, to date compared with same period last year ......................................................... ..
Credit sales (percentage) :
February, 1986, compared with February, 1986..........................................
February, 1986, compared with January, 1986...................................... ..... _...........................
January I, to date compared with same period last year................... ~~::.·.·:.·.:·:.·.·.·....::.·.·:..:...·.:·....::............::
Stocks on hand at end of month (percentage) :
February, 1986, compared with February, 1985 ............... _......................................................... ..
February, 1986, compared with January, 1986.............................................................................
Stock turnover (rate) :
Rate of stock turnover in February, 1985............................................ .
Rate of stock turnover In February, 1986........................................ . ...................................... ..
Rate of stock turnover January I, to February 28, 1986 .............. ::::::::::::::::::::::::::::::::::::::::::::::
Rate of stock turnover January I, to February 29, 1986............................................................
Ratio of February collections to open accounts receivable outstanding February 1, 1986 .....
Ratio of February collections to Installment accounts receivable outstanding Feb. I, 1986..
Indexes of department store sales :

~jk!g;~F~;g~~;~~·~~~~ :· ~ ~ ~ ~ :~ :·:~·: : :~ ~:·:~ :.:~ :~:~.~:~ :~~:~.~.:~~~.~.:~~ ~.: ~:.~~:. ~:~ ~: .: .:.~ :~:. :.:~:. :.~:. :. .~:

Indexes of department store stocks :

Dallas
+ 17.2
14.0
+ 17.6

+

Ft. Worth
+ 21.2
14.1
+ 17.5

+

Hou!ton
+ 16.8
.7
+ 12.2

S.n Anton! o
+ 17.1
2.0
19.8

+ 17.2
18.1
+ 19.2

+

+ 28.0
+ 16.8
+ 19.8

+21.8
1.0
+ 17.2

8.6
8.4
+ 12.9

+ 10.1

+

+ 14.6

.80
.82
.67
.61
41.6
16.6
74.5
89.0
86.6
101.1

2.8
7.8

+

-

+

11.4
9.4

+
+
-

+
+

8.1
8.3

.20
.24
.40
.45
88.6
10.1

.21
.27
.42
.62
42.5

.24
.26
.61
.64
44.7
16.1

66.9
78.9
89.1
96.1

69.7
72.6
78.8
85.4

64.1
68.7
70.4
76,7

Others
+ 12.0
.2
+ 10.6

Tota! Di.' I.
16.4
6,5
15.6

+ 10.4.9
+ 11.9
+ S.9
+ 12.1

+ 16,8
+ 6.6
+ 16.9
+ 3.2

.19
.20
. 88
.42
87.8
21.2

i

+11.5

,24
.27
,47
.52
41.0
14.7

68.8
76.6
81.9
91,2

~if~~iit~;~~b1if.~~..................................................................................................................
:~·:·: :·: :·:·:·: ·:·: :·: ·: :~:·: :.:.: : : :.: :~: :.:.:.: :.: .:::~:::.:~:~.~.:::. .: .:.: :.:.:.: .: .: :~::: :.: : ~: :~: :.:.:.:
-----------------------------------------------------Co'!"'mercial
,!here were fewer insolvencies reported
..

..

Fatlures
m the Eleventh Federal Reserve District
.
during February than in either the precedmg mon~h or the corr~sponding month last year, and the
amount of mdebtedness mvolved was likewise smaller than
in either comparative month. According to the compilation

49.4
57. 0
66.8
69.4

68.0
62.6
67.4
66.1

87.2
39.4
43,8
42.4

47.7
48 .5
61.8
48. 0

62.2
67.6
60,0
60.0

of Dun & Bradstreet, Incorporated, 26 firms defaulted last
month and their combined liabilities amounted to $281,000.
In January there were 39 commercial failures with liabilities
aggregating $339,000, and in February a year ago 28 ins ol ·
vencies occurred, their indebtedness amounting to $315,000.

MONTHLY BUSINESS REVIEW

8

AGRICUL TURE
Crop Conditions

The agricultu,rul situation during the
past month was affected adversely by the
lack of rainfall. Since the first of the
Y~ar, precipitation has been deficient over most of the terl"ltOl'Y in this district and the north winds have depleted
sU.dace moisture. In the northwestern portion of the distnct the condition has been aggravated by the recurrence
of dust storms in recent weeks. While a good subsoil seas~n still obtains in practically all sections of the district
wllh the exception of west and northwest Texas and eastern New Mexico, and moderate rainfall has occurred recently in some areas, a heavy general rain is urgently
needed to supply adequate surface moisture for spring
planting operations and to stimulate the growth of small
grains.
. The preparation of the soil for spring planting is prac!lcally completed in most sections of the district. The plantIng of corn is nearing completion in south Texas, is well
advanced in central Texas and is beginning in north Texas
where soil moisture is sufficient to germinate the seed.
Cotton planting is under way in south Texas.
Small grains in most sections are reported to be in fair
to good condition. Grain crops have been damaged by the
f~eezing ~emperatures, high winds, and dust storms, but
SInce the appearance of warm weather, fields are greening
rapidly, particularly where some moisture has becn ob·
tamed. Nevertheless, substantial rainfall in practically all
sections is needed to assure crop growth during the spring
11l0nths.
The March 1 repor't of the Department of Agriculture
estimated the production of grapefruit in Texas during the
1935-36 season at 3,080,000 boxes as compared with 2,750,000 boxes during the previous season, and the production
of oranges at 627,000 boxes as against 560,000 boxes in
the 1934,-35 season . The vegetablc crops in south Texas
are reported to be in good condition generally as the moisture supply has been adequate, and most crops came through
the cold weather in January and February without serious damage. Shipments during the current season have
greatly exceeded those of the previous season.
Further deterioration in range and livestock conditions over a large area of the
~leventh District occurred during February due to the contInued dry, cold weather, together with the high winds and
dust storms in northwest Texas and eastern New Mexico.
~ubsoil moisture is adequate in most areas with the exceptIon of west and north west sections of Texas and eastern
New Mexico, but surface moisture would be beneficial in
practically all sections. Since the first of March the warm
weather, together with rains in south Texas and portions
of southeast, central, and southwest Texas and in scattered
localities elsewhere, has started spring grass and weeds. However, heavy general rains are needed to stimulate the growth
of range vegetation so that good spring grazing would b·
available. While livestock showed some shrinkoge durin g
the cold weather in February, they held up well due largel y
to supplemental feeding and have come lhrough the winter
ill good shape. The Departmellt of Agriculture reported
Livestoclc

that prospects are good for a large calf crop, a lamb crop
fully average, and a better than average kid crop.
The condition of cattle ranges in Texas was reported by
the Department of Agriculture as 76 per cent of normal on
March 1, which was 1 point lower than a month earlier,
but 23 points higher than a year ago. The condition of
sheep and goat ranges, which declined 3 points in February, was 22 points higher on March 1 than on the same
date in 1935. Between February 1 and March 1 there was
a decline of 1 point in the condition of cattle and goats
and 2 points in that of sheep, but the condition on the latter
date was materially higher than a year ago and slightly
higher than the ten-year average. The condition of livestock
and ranges remained unchanged in New Mexico and there
was a slight improvement in Arizona .
The production of wool and mohair in
states attached to this district, as estimated by the Department of Agriculture,
showed a further decline in 1935, due
largely to the smaller number of animals shorn. The production of wool in Texas amounted to 59,220,000 pounds
in 1935, as compared with 60,8{5ft,000 pounds in 1934, and
74,,800,000 pounds in 1933. However, the production in
1935 was higher than in any year prior to 1933. Texas
mohair production totaled 13,000,000 pounds in 1935, as
compared with 13,500,000 pounds in 1934, and 13,700,000
pounds in 1933.
Production of
WoolandMohair in 1935

Number and Value According to the Department of Agriof Livestock on
culture, the unit price and total value of
Farms
all classes of livestock on farms in states
attached to this district showed a substantial increase dw-ing 1935. The number of mules and
cattle on farms in Texas was smaller on January 1, 1936,
than on the same date in 1935. On the other hand, there
was a slight increase in the number of horses, swine, and
goats. The supply of sheep was the same on both dates. In
Louisiana there was a decline in the number of cattle,
swine, and sheep, while the number of horses and mules
remained unchanged.
NUMB'E R AND VALUE OF LIVES'l.'OCK ON FARMS AS OF JANUARY
1, 1986 AND 1986
Number
(OOO's omilled)
1935
19 36

'fuu&-

Avenge Price
(Per he",l)
1936
1935

Total V.lue
(000" omilled)
1936
1935

$ 80,214
$96.00
$80.00
890
$71 ,840
887
Mules ..............
64.00
52.00
44,270
35,470
686
698
HOl'sea ............
19.00
42,514
29.00
27,854
1,466
Milk cowso ... 1,466
162,892
22.20
18.00
7,222
94,180
All cattle...... 6.861
5.20
14,693
10.20
7,219
1,899
Swine............. 1,441
8.46
')0,827
24,402
7,092
5.70
Sheep.............. 7,092
6,744
2.40
1.15
8,047
2,650
Goats .............. 2,810
Louisiana19,791
99.00
84.00
16,618
199
199
Mules ..............
45.00
6,848
56.00
6,515
122
122
Horaes...........
24 .00
9,881
29.00
8,472
858
889
Milk cows· ...
14.20
19,517
18.90
15,955
1,125
All cattle .... 1,085
4.85
5,782
7.90
8,758
777
Swine............
780
3.20
2.65
788
727
275
248
Sheep.............
New Mexico65.00
1,448
85.00
1,164
18
17
Mules ............. ·
41.00
144
53.00
7,496
5,872
141
Horses............
45.00
27.00
8,160
1,868
69
Milk cowso ...
70
28.80
15.60
28,047
1,101
17,148
All cattle.....
991
4.45
681
258
10.60
64
58
Swine............
6.60
3.80
12,888
9,856
2,460
Sheep.............. 2,887
.Cows and heilet·s two years old and over, being kept for milk.
SOURCE: United States Deportment of Agriculture.

4

MONTHLY BUSINESS REVIEW

The February receipts of all classes of
livestock at the Fort Worth market reflected a considerable decline as compared with those in the previous month, but arrivals exceeded those in the corresponding month last year by a
wide margin_

FORT WORTH LIVESTOOK REOEIPTS
(Number)
February Change from January
February

Movements
and Prices

The market on most classes of cattle evidenced a downward trend during the last half of February, but prices
were a little higher in the first half of March with the best
gains being registered in the calf division. While the hog
market continued erratic, the best offerings were bringing
$10.00 at the middle of March, which was the same as a
month earlier. Sheep and lamb prices declined during the
second half of February, but most of the loss was regained
in the subsequent two weeks.

Oattle..................._...
Oalves .......................
Hogs .........................
Sheep ........................

1936
62.988
21.896
41.888
22.161

19J5
28.678
14.848
80.882
12.088

year

+29.260
+ 7.047
+11.606
+10.068

1936
73.247
31.106
44.068
29.727

COMPARATIVE TOP LIVESTOOK PRIOES
(Dollnl's pel' hundredweight)
February
February
Beef steers............................................................. .
Stocker steers ....................................................... .
Heifers and yearlings........................................ .
Butcher cows ............................................... ·.........
Calves .......................................................................
Hogs.........................................................................
Sheep ....................................................................... .
Lambs ......................................................................

1936
$ 8.25
7.25
9.26
6.00
7.00
10.36
6.00
9.60

19J5
'12.00
7.25
11.00
6.50
8.00
8.86
6.60
7.76

Change from
month
_20.809
_ 9.710
_ 2.180
_ 7.676

Januar,

1936
$ 9.86

7.60
9.60
6.00
7.00
10.26
6.60
10.00

FINANCE
Federal Reserve Bank loans to member
banks showed some increase during the
past month, but they continued in small
volume. These loans totaled $178,000
on March 15, as compared with $89,000 on February 15,
and $119,000 at the middle of March last year. Outstanding advances to established industrial and commercial
firms for working capital purposes and commitments to
make such advances again reflected ' a slight decline. This
bank's investments in United States securities, and in bills
bought in the open market remained unchanged between
February 15 and March 15. The total cash reserves held
by this bank rose to $148,697,000 on March 15, which was
$6,586,000 larger than a month earlier, and $33,305,000
greater than holdings a year ago. The reserve deposits of
member banks increased $4,,468,000 between February 15
and March 15, and on the latter date were $10,275,000
above those on the corresponding date in 1935. Federal
reserve notes in actual circulation amounted to $75,060,000 on March 15, which represents an increase of $2,555,000 since the middle of February and $26,905,000 over the
total on March 15 last year.

Operations of
the Federal Reserve Bank

CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
March IS, March IS,
Total cash reserves....... _.....................................
Discounts for member banks........................... .
Otber bills discounted...................................... ..
Industrial advances...___ .. __ .. __.. __ ...........................
Commitments to make Industl'ial advances ..
Bills bought In the open market.. __________.... __ __
United States Government securities owned ..
All other Investments.. ________ ......__ ...... __ .. __ ......... .
Total earning assets ...................___ ..... __ ......__ .... ..
Member bank reserve deposlta __ .. __.__ . ___ .. _____ .
Federal Reserve notes In actual olrculatlon ..

1936
$148.697
178

None

1.718
687
188
86.000
10
87,084
186.608
76.060

1935
$116.892
119

Feb. IS,
1936
$142.111
89

None

None

1.462

1,786
690
1a8
86.000
10
86.967
182.040
72,606

None

148
71.476
6
78.194
126,283
48.166

The total loans and investments of reporting member banks in selected cities
of this district reflected a decline of
$1,764,000 between February 12 and
March n, but on the latter date were
$12,887,000 higher than a year ago. During the four-week
period ending March 11, the investments of these banks in
the direct and fully guaranteed obligations of the United
States declined $1,029,000 and investments in other stocks
and bonds were reduced $1,424,000. As compared with a
year ago, there was an increase of $2,989,000 in the former
classification, and $7,215,000 in the latter classification.
While loans on securities reflected an expansion of $816,000

Condition of
M ember Banks
in Selected
Cities

during the four-week period, the total on March 11 was
$6,221,000 lower than a year earlier. "All other" lo~ns
(largely commercial), which showed a steady decline dur~ng
the first two months of the year, turned upward dunng
the week ending March 11 and on that date were $8,904,,000
higher than a year ago. Their net demand deposits ro~e
$8,227,000 between February 12 and March n, but th~lr
time deposits declined $1,4,09,000. Their reserve depOSits
with the Federal Reserve Bank totaled $84.,758,000 on
March 11, which was $8,4.01,000 greater than four weeks
earlier and $1,263,000 larger than a year ago.
CONDITION STATISTICS OF MEMBER BANKS IN SELEOTED OI'I'IES
(In thousands of dollars)
Feb. 12,
March II, March 13,
1936
19J5
1936
$147,502
$166.876
United States securities (owned) ..... __ ....... __ .. $146,692
Securities fully guaranteed by United
60.008
27.701
49.874
States Government (owned) .......... __ ........... .
All other stocks. bonds. and securities
48,875
89.786
(owned) ...... ______... _........................ __ ...... __ .. __ ..... __
46.951
42.02 0
49.067
42.836
Loans on secUl·ltles.... ____ .................................... __
0
144.46
186.429
144.888
All other loans ........................ __ ...... __ .................. ..
186,48 0
184.486
Total loans ..... __ ............... ________ ....................... __ ..... ..
187.169
349.227
321.047
867.464
Net demand deposits..................... __ ..... __ .. ____ .... ..
119.769
Time deposits .. ____ ................ ______........ __________ ........... .
122.498
1l8.860
76.367
88.496
84.768
Reserve with Federal Reserve Bank. __ .. __ ...... .
Bi\ls payable and rediscounts with Federal
None
None
Reserve Bank............____ ..... __ ............. ____ ..... ____ .....
None

-

A sizeable decrease from the previoU
Deposits of
month was witnessed in the net dema~
Member Banks
deposits of reserve city banks in this dIStrict during February. While a partially offsetting gain ~c·
cUlTed at country banks, the daily average demand depOSIts
of all member banks declined from $586,980,000 in ~anud~
to $574,,058,000 in the subsequent month. Average tune e
posits on the other hand reflected a further expansion a~ hd
amounted to $197,078,000 in February, as compared WIt
$195,765,000 in the previous month. .

d

DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
CountryB~
Reserve City Dank s
Combined Total
'rlm e
Time Net Del11nnd Depo,lt.
Time Ne t Demand
Net Demand
Deposits
Deposits Deposits
Deposits
Depos its
Feb.,
Mar.,
April.
May.
June,
July.
Aug .•
Sept .•
Oct.•
Nov .•
Dec"
Jan.,
Feb .•

1986 ...... __
1936 ........
1986 ...... __
1936 ........
1986...... __
1985........
1936........
1986.. __ ....
1986 ........
1986.... ____
1936...... __
1936.. __ ....
1986...... __

$609.126 $197.166 $289.967 $112.686 $819,168 $84.6~~
81.8
811.391
1l2.019
198,394
294.281
605,672
81.6~~
807.186
112,252
209.163
606.348
193.849
81.8
807.017
1l8.128
194.624
296.770
603.787
80. 416
308.636
112.888
800.626
609.260
198.263
81. 648
309.683
112.752
308.892
194.896
618.475
82. 75
304.880
111,826
326.406
194.680
680.786
82.48
264.422
111.616
194,060
818.466
567.887
82.98 4
256,380
1l0,998
326.245
581.626
193.927
82.07 4
266.900
111.867
882.346
689.246
194.841
82.848
244.891
111,682
340.708
194,626
585.699
86.714
241.981
1l0.051
346.049
686,980
195.766
87. 414
246,268
109.664
828.806
674.068
197.078

!

MONTHLY BUSINESS REVIEW
Debits to
Individual
Accounts

The volume of charges to depositors' ac·
counts during February at banks in
principal centers in this district was sea·
sonally smaller than in January, and
showed a slightly smaller margin of increase over a year
ago than had been registered in the three preceding months.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars )
Feb.
Feb.
Petg. ch.ng.
Jan. Pctg. ch.ng.
1936
1935
from y."r
1936 from month

~:~~:~~i:"~'~'~'~'~'~: -:'~~ ~:':"~: :~ ~un ~tm ~~H ~~:!!i ~i~J
rlslalcsa..na.......................
Oa

iif~~S::;')~/:~;D;:

~rt Arthur...................

S Swel!...........................
n Antonio..................
l' reveport.................... _

Sh

..

1'~~:~~~~~~~~~~~~~~~~~ ~~~~~.

2,611
192,931

2,554
161,022

+ 2.2
+19.8

8,889
218,913

6,817
2,287
60,208
85,486

0,444
1,947
52,640
26,766

+25.2
+17.6
+14.4
+82 .6

7,616
2,721
69,468
37,184

JHU JHn liH JHn
g:~g~

~f~~~~:::::::::::~:::::::::::::~::::
g:~~~
c Ita Falls.................
12,977

~:::g

t}U
1~:m ~80:~
11,042
+17.6

g:m

g:m

-23.0
-11.9

~iH

-10.5
-16.0
-18.3
- 4.6

=lg:~

=~:~

14,823
- 9.4
TotaL..............
681,834
681,454
+17.3
754,731
- 9.7
"Includes the figures of two banks in T exarkana, Arkansas, located in
lhe Eighth District.

6

Total debits amounted to $681,834,000, as compared with
$754,731,000 in the previous month, and $581,454,000 in
February, 1935.
Acceptance
Market

While a further decrease in outstanding
bank acceptances usually occurs during
February, a moderate upturn was report·
ed last month. Total acceptances executed by banks in the
Eleventh District and outstanding February 29 amounted to
$1,985,134., of which $1,752,679 represented acceptances
based on the domestic shipment and storage of goods, and
the remaining $232,455 comprised those executed against
import and export transactions. The aggregate outstanding
a month earlier was $1,767,116, and that on February 28,
1935, was $1,667,457.
Savings
Deposits

The amount of savings deposits held by
reporting banks on February 29 was
slightly under that a month earlier, but
continued appreciably larger than a year ago. The total
of these deposits reported was $152,434,147, this figure com·
paring with $152,906,487 on January 31, and $14.7,301,256
on February 28 last year. Th~re was a larger number of
savings depositors than on either comparative date.

SAVINGS DEPOSITS
Febru.ry 29, 1936

Febru.ry 28, 1935
Number
of re.. Number of
Amount of
Number of
Amount of P ercentage change
porting savings
savings
savings
savi ngs
from yenr in
banks depositors
deposits
depositors
depos its
snvings deposi tS
9,065
3
$ 8,512,899
8,814
$ 8,627,281
.4
77,204
9·
24,8&4,858
76,881
26,287,046
- 1.6
2
12,868
6,192,856
11,919
6,215,858
+18.7
8
34,704
11,589,821
84,509
10,814,889
6.7
4
16,921
10,485,484
16,841
9,916,207
6.2
66,488
11"
80,458,007
65,486
29,804,475
8.9
2
5,654
2,215,882
6,288
2,060,516
+ 7.6
6·
18,286
17,860,161
17,267
16,844,669
+ 6.2
3
22,867
10,277,599
22,409
11,165,976
- 7.9
3
10,581
5,778,970
11,009
6,422,808
- 10.1
3
6,829
3,818,645
6,969
2,802,749
+18.4
50,842
75"
26,684,615
49,774
24,499,887
+ 8.8
TotaL. .............................
124
380,808
$152,484,147
826,106
$147,801,256
+ 8.6
· Only 8 banks in Dallas, 10 in Houston, 6 in San Antonio, and 67 in unll others" reported the numbel' of

11'. I:I !~il!l ;!

-

l

MARCH DISCOUNT RATES
(Prevailing rates)
Dn11 ••
nute chal'ged customers on prime commercial puper such tiS that now eligible for
I'edlscount under t h e Federal Reserve Act .........................; ............................................. 8l1,.-6
te churged on loans to other banks secul'ed by bills recCivable................................... .
n ate
on loans secured by pl'ime stock exch ange 01' other current collateral (not
including loans placed in other markets through correspondent banks) :
Demand ..............................................................................................................................
6-8
n
Time .......................................................................................................... --......... --... --........ 8~-8
nate charged on commodity paper secured by warehouse receipts, etc . ...................... .. IVs-6
ate on cattle loans..............__....................................................... _...............................................

nn

J.nuary 31,1936
Number of
savings
depositors
9,017
77,016
12,286
84,620
16,906
66,970
5,620
18,122
22,429
10,681
6,289
50,565

Amount of
snving!

deposits
$ 8,687,769
24,814,480
6,101,896
11,518,177
10,498,676
80,876,841
2,218,867
17,846,771
10,820,554
5,901,580
8,807,481
26,478,595

Percentage change
from month ill
... ings deposits
.7
0.0
+ 1.5
+ .2
.6
1.4
+ .1
0.0
.4
- 2.2
=1= .8
.2

880,421
$152,906,487
savings depos itors.

EI Paso

Fort Worth

6-8
5-8

4-7
4-7

8-7
4l1,.- 6

6-8
6-8
8
6-8

4-10
4-10
6-8
6-10

8-7
8-7
8-7
7-10

Houston

Snn Antonio

-

-

-

.8

Waco

6-7
6

6

6
6-7

6-8
6-8
8-7
8

5-8

7-8

INDUSTRY
The receipts and crushings of cottonseed
and the production of all products reo
~
f1ected the usual seasonal decline during
1; ebruary at both Texas and United States mills, but these
Operations, with the exception of the output of crude oil at
United States mills, continued above those in the same
ll10llth a year ago. The demand for cottonseed products, as
I~easured by shipments during the month, showed an appre·
clable upturn at Texas mills, as an increase over both the
previous month and the corresponding month of 1935 was
reflected in the shipments of all classes of products. At
~nited States mills, however, shipments of oil were less than
In either comparative month, and cake and meal evidenced
a decrease from the January shipments. Movemenls of hulls
<Iud lintel's£rol11 American mills were grealer than in either
Cottonseed
Products

January this year or February a year ago. While operations
S'fATISTICS ON COTTONSEED AND COT'fONSEED PRODUOTS
Texas
United St.tes
August 1 to Februnry 29
August 1 to Februnry 29
This seaSOIl
Last senson
This senson
Lust season
Cottonseed received at
mills (tons ) .................. _....
948,252
697,872
8,564,981
3,281,889
Cottonseed crushed (tons) .
719,101
868,892
8,282,706
2,928,812
Cottonseed on hand
Feb. 29 (tons) ..................
107,272
80,982
871,850
580,288
Crude oil produced (lbs.) .. 242,548,869 206,188,741 989,869,178 904,215,686
Cake and meal produced
(tons) .............................. _
896,776
389,627
1,485,188
1,827,741
Hulls produced (tons) ....... _
282,644
190,484
764,889
848,090
Lintel'S produced
(running bales) ................
168,487
152,895
748,182
649,620
Stocks on hand Feb. 29 :
Crude 011 (pounds) .............. 88,985,061
18,194,855
89,497,926
45,564,941
Cake and meal (tons) .........
70,668
88,864
322,211
848,254
Hulls (tons) ..........................
86,066
59,922
154,861
181,788
Lintel'S (runnlnll' bales} .._
66,680
56,111
175,991
197,551

MONTHLY BUSINESS REVIEW

6

of cottonseed oil mills during the cunent season continue
well above those of the previous season, they are still on
a smaller scale than in other recent years. Stocks of crude
oil on hand February 29 at crushing establishments in both
Texas and the United States were slightly larger than the
holdings a month earlier, and they continued noticeably
greater than a year ago. Supplies of all other products reo
Hected a seasonal decline during the month, and at Amer·
ican mills they were less than on February 28, 1935.
Despite a seasonal decline of 12.6 per
cent in the domestic consumption of cotton during February, activity in the cotton textile industry continued on a relatively high level.
Consumption not only evidenced another increase over the
corresponding month of the previous y~ar, but it also continued above the ten-year (1926·35) average for that month.
There were 516,649 bales of cotton consumed during Febru·
ary, as compared with 591,309 bales in the preceding month
and 4.80,339 bales in February a year ago. Consumption
during the first seven months of the current season totaled
3,523,846 bales and represents an increase of 11.3 per cent
over the 3,164.,986 bales consumed in the same period last
season. Stocks of cotton on hand at consuming establishments on February 29 were less than a month earlier, but
continued in excess of those a year ago. The total supply of
cotton at textile mills and public storage and compresses
on February 29 amounted to 8,652,279 bales, which is 9.1
pel' cent less than the holdings on February 28, 1935.

Textile
Milling

The consumption of cotton and production of cloth at
reporting textile mills located in Texas reflected an increase
in February over both the previous month and the same
month a year ago. The demand for cotton goods, as measured by orders on hand at the close of the month, continued
well above that a year ago, but evidenced a further decrease
from that a month earlier. Mill stocks of finished goods on
February 29 were in smaller volume than on January 31
this year or February 28, 1935.

over the corresponding month last year. Shipments t?taled
406,022 bales, which com pares with exports a.mount111g .to
525,636 bales in January, and 390,294. bales III FebrualY,
1935. During the first seven months of the present season
exports totaled 4409619 bales, which compares very favor·
,
, .
.
'd bI
ably with exports of the previous season, but IS consl era Y
smaller than in other recent years.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
Feb.

Receipts ............................... ..
Exports ................................ ..
Stocl,s, February 29 .......... .

Feb.

F.b.

1936

1935

481.591

382,285

2,524,865

1,179,024
927,764
7,124.704 8,148,636
516,649

480,889

8,528,846

8,164,986

1,404,476 1,161,076
7,247,803 8,864,790

Cotton
Movements

Movements of cotton followed the usual
seasonal trend during February at the
ports of Houston and Galveston. Both
receipts and exports reflected a decline from the previous
month, but continued in substantially larger volume than in
the corresponding month of 1935. During the first seven
months of the cunent season the combined exports of cotton
from both Houston and Galveston totaled 2,312,754 bales
which ~epresents an in?rease of 31.8 per cent over the ship:
ments III the same penod of the previous season. Stocks of
colton on hand at both concentration points on February 29
were seasonally smaller than on January 31, and at Houston
they continued noticeably below those a year ago.
Total foreign exports of American cotton showed a sub.
stantial decline in February, but registered a small increase

August 1 to February 29
This season
Last season

1,462,126
1,012,269
674,620

Feb. 29,

For Great Britain............................................................... ·......
For France....................................... _.................. .......................

1936
9,000
1,800

f;~Jl~~l~~~r~~~~!~:~~:i~.: : : :.: : .:.: : : : : : : :.:.:.: .: : : : : : : .: :.: : : :. 6:~:i~~

TotaL............................................................................ 674,520

866,281
848,42 6
684 ,848

Feb . 28 ,

1935
8,80 0
1,30 0
16,800
1,000
612~
634,348

COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Baies)
Feb.

1936
Receipts............................................... 81,742
Exports................................................ 146,849
Stocks, February 29 ...................................... ..

Feb.

1935
86,814
105,403

August 1 to FebruarY 29
This season Lnst SC:l!on

1,688,801
1,800,496
572,641

992,28~

911.81 5
876,81

SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES POR'rS
(Baies)
Receipts..................................................................................·.... .
Exports: United Kingdom .............................................. ·...... ·
France.................................................. ·.... ·.............. ·
Italy ......................................................................... ..
Germany.......................................................... .........·
Other Europe..................................................·...... ..
J apan ....................................................................... ..
All other countries ........................................ ·........ ·
Total foreign ports............................................................ ·.... ·..
Stocks held at all United States ports, Feb. 29 ................. ..

Augu. t 1 to Febru,ry 29
This season Lnst season
6,276,029 8,949,664
606,988~
999 ,810
658002
274,9
262;040
808,181~
662 600
288,2
696'798
608,775
1,114;988 1,12~g~~
236,681 ~
4,409,619 3,254,882
2,420,776 2,581,716

SPOT COTTON PRICES
Middling Basis
(Cents per pound)

Augu. t 1 to February 29
This season Last season

2,952,172

Feb.

1935
41,880
108,224

COTTON-GALVESTON STOCK STATEMENT
(Bales)

COTTON CONSUMED AND ON HAND
(Bales)
Cotton-growing states:
Cotton consumed ..............................
Cotton on hand February 29 inConsuming establlshmente.........
Public storage and compl·esses ..
United States:
Cotton consumed ...............................
Cotton on hand February 29 inConsuming establishments.........
Publio storage and compresses ..

1936
69,574
184,696

F.bruory, 1936
High
Low

New york ............................................................... .
New Orleans.......................................................... .
Dallas...................................................................... .
Houston ....................................................................
Galveston....................... _........................................

11.80
11.69
11.26
11.85
11.82

11.28
11.21
10.66
11.05
11.00

March H,

1936
11.86
11.40
10.94
11.85
11.80

--------------------------------------------Production of crude oil in this district
totaled 34.,478,100 barrels in Febru~6:
as compared with 35,4,98,100 bar~els in January, an~ D;'
4094,00 barrels in the corresl'londmg month last yeal . e
r
month d al'1 y aV erag
spite, the decrease from the I)revious
900 bar'
Production turned upward and amounted to 1,188,'11'
rels as aO'ainst 1145100 barrels in January. Dn Illg ac'
'
t::>
"
•
ur'
tivity continued on an approximately unchanged baSIS d 11s
ing February. The initial output from newly completed ~~ a
was reported as 1,153,763 barrels, which compares 'Vl '
Sub
total of 1 168 187 barrels in the preceding month. .tll
1
,
,
M
'
d
no
stantial gains were recorded in both New exlCO an
Louisiana.
in
The daily avera"e yield fr0111 Texas fi elds, wh'ch
I
Is

Petroleum

February amounted~o 1,071,200 barrels, was 34,800 baJ'r~er
larger than in th~ previo?s mon~ and. 55,000 bal'l:eIs ?re;ot.h
than a year ago. fhe major portIon ot the cxpansIOII III

7

MONTHLY BUSINESS REVIEW
cases occurred in the western and Gulf coastal areas. A
further sizable increase was recorded in north Louisiana
during the month.
OIL PRODUCTION
(Barrels)
Incrensc or decrease

~rth Texaa ........................

fEl;1~~1~~;~~ :~ :~·~ ~ :~ ~:~:~ .
'fotal Texaa ......................

~ew Mexlco ... _................... ..
orth Louisiana ..................
Total District...................

February, 193 6
over J.nunry, 193 6
Tot. l
Dnlly Avg .
Tot.l
D.lly Avg.
3,888,660
114,960
248,860
460
5,891,100
186,900
45,150
i18,450
14,018,600
488,400
761,850
6,950
69,100
2,800
2,086,800
70,200
44,450
+12,550
6,286,760 ~
1,071,200 -1,068,600
81,064,800
+84,800
57,100
1,666,900
148,800
- 1,100
1,757,400
+ 191,900
60,600
+10,100
84,478,100
-1,020,000
1,188,900
+48,800

+

FEBRUARY DRILLING RESULTS
Completions

North Texas ......................
West Texas........................
East Texas....... _.............. _
South Texas......................
Texas COastnl ........... _.......
Total Texas...................
New Mexico.......................
North Louisiana..............
F eb. totals, District.....
Jan. totals, District .....

168
105
217
180
66
720
86
82
787
817

Producers C .. Well.
96
18
2
81
201
1

ao

Ii

46
664
81
21
616
604

1
22
2
6
80
88

Failur..
44
22
16
86
18
184
2
6
141
180

Initial
Production
19,706
124,994
706,060
70,078
20,410
940,246
60,202
168,816
1,158,768
1,168,187

Building

A further considerable expansion over
the previous month was registered in the
valuation of building permits issued at leading cities in the
Eleventh Federal Reserve District during February, and the
month's volume was more than five times larger than that
reported a year ago. The total valuation, which amounted
to $7,720,358, was at the highest point reached for anyone
month since October, 1929. In January the amount reported
was $4,,271,546, and in February last year the aggregate was
$1,503,448.

CRUDE OIL PRICES
(Price p el' burrel)
March 6,
March 8,
1936
19J5
$1.22
$1.12
North Texas (40 gravity and above) .....................................
1.08
1.08
orth Loulsluna (40 gravity and above) .............................
1.10
1.08
(011 statistics compiled by The 011 Weekly, Houston, Texas)

~exus Coastal (84 gravity !lnd above) ............................. ....

BUILDING PERMITS
February, 1936

i:!~ll:i:: : : : : : : : : : ::

Dofpus ChristL ............

~i~~':io:::::::::::::::::::::::::::

Gort Worth....................

~~;B~~.~ :::::::::::::::::::::::

S art Arthur...................
n Antonio..................

st

~i~~·
~~·~·~·~:::::::::::::::::::::
chlta Falls ................

'l'ota\... .............

Cement

Valuation
No.
26 $ 48,295
142
456,482
102,282
78
257,060
78
2,149,091
847
50
58,171
118
284,975
74
20,013
8,961,612
887
112
48,844
149,012
191
92
186,660
84
89,896
10
18,575
1,789 $7,720,858

Fcbruory, 19 JS
No.
Valuation
20 $ 10,807
121
176,590
98
14,270
47
28,487
883
225,479
8D
42,890
90
49,400
101
209,658
197
448,179
81,247
61
128
45,241
150
148,507
16
13,884
21
69,859
1,457 $1,508,448

Pctg. change

J.nuary, 1936

valuation
over yen r

No.

+820.1
+158.5
+616.4
+994.5
+858.1
+ 25.4
+476.9
- 90 .5
+798.9
+ 64.7
229.4
8.0
+188.4
- 78.4
+413.5

22
154
97
81
419
47
102
82
269
69
195
78
27
7
1,644

Increased activity was in evidence during
February at Texas Portland cement mills,
?oth production and shipments being in larger volume than
In either the previous month or the same month last year.
There were 375,000 barrels of cement manufactured, as
compared with 260,000 barrels in January and 221,000 barrels in February a year ago. Aggregate shipments amounted
~o 397,000 barrels, as against 395,000 barrels in the preced~ng month and 229,000 barrels in the corresponding month
In 1935. Inventories on hand decreased from 607,000 barrels at the close of January to 586,000 barrels on February

Pctg. change

Vnluation

valuation
over month

48,884
799,845
219,888
125,580
999,275
42.098
582,400
25,561
798,921
26,400
489,880
84,208
27,758
12,995
$4,271,546

.1
- 42.9
- 58.5
+104.8
115.1
+ 26.8
- 61.1
- 21.7
+899.0
+ 90.8
- 69.6
+ 62.8
+ 48.8
+ 42.9
+ 80.7

$

No.
48
296
175
159
766
97
220
166
656
181
886
165
61
17
8,888

Jnnunry I to February 29
1936
19J5
Vnluntlon
No.
V.lu. tlon
86,629
$
49
$ 81,611
1,255,777
252
1,912,893
822,070
186
68,185
882,590
98
59,568
8,148,866
784
605,069
95,264
66
57,947
867,876
176
428,889
45,574
188
284,906
4,755,588
416
964,614
78,758
91
55,876
688,901
806
259,427
220,858
277
209,179
67,649
89
48,088
81,570
41
79,410
$11,991,904 2,908
$5,005,111

Pctg. chanae
valuation
over period
+174.0
- 84.8
-410.1
542 8
420.8
•
64,4
102.2
- 80.6

1
1"'"

82.0
146.8
5.6
57.0
- 60.2
+189.6

29, and on the latter date were 18.3 per cent smaller than
a year ago.
PRODUC'l'ION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
(In thousands of bane1s)
Percentnge
chnn!;c over

February,
1936

Production at Texas m111s. 875
Shipments from Texas
mills................................... 897
Stocks at end of month
at Texas mills.................. 586

February,

]nnu:uy,

19J5

1936

+69.7

+44.2

+78.4

+.5

- 18.8

-

8.5

]anuory 1
through Percenlaao
Feb. 29,
change
1936
over year
685
+28.8
792

+68.9

8

MONTHLY BUSINESS REVIEW

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System. March 26, 1986)

Volume of industrial production and employment showed
little change in February, and the index of production
which makes allowance for seasonal changes, declined fro~
98 to 95 per cent of the 1923·1925 average. Distribution of
commodities continued at about the January level.
PRODUCTION AND EMPLOYMENT
Daily average output in basic industries was in about the
same volume in February as in January. Since usually there
is an increase in manufacturing activity at this season, the
Board's seasonally adjusted index of factory output showed
a decline. Output at mines increased. There was a sub.
stantial further decrease in automobile production in Febru.
ary, and the rate of operations at steel mills increased by
less than the usual seasonal amount. In the first half of
March pro~uction of steel expanded seasonally and output
of automobiles showed a more than seasonal increase. There
was little cha~ge in the volume of lumber cut in February,
although an mcrease usually occurs in that month. At
woolen mills production increased by about the seasonal
amount, while activity at cotton textile mills, which is
usu~lly l~rger in February than in January, decreased, and
at Silk mills there was a larger than seasonal decline. Out.
put at meat· packing establishments also declined. There was
a substantial increase in the mining of both anthracite and
bituminous coal, while output of crude petroleum declined
s2...mewhat. Factory employment increased by less than the
usual seasonal amount between the middle of January and
the middle of February. There was little change in the num.
ber of workers at steel mills and a decrease in the number
employed at automobile factories, although increases are
usual in these industries in February. Employment declined
at silk and rayon textile mills and showed a smaller than
seasonal increase at shoe factories. Increases in employment
were. reported fo~ railroad repair shops, for printing and
pubhshmg estabhshments, and for factories producing wear.
mg a~parel. Factory payrolls, which are usually larger in
the middle of February than a month earlier, showed no
change. The value of construction contracts awarded, as reo
ported by the F. W. Dodge Corporation, declined further
1~ February. Awards for residential construction showed
lIttle change, and there was a decrease in the value of
awar.ds for . all other contracts, a large part of which are for
pubhc projects.

DISTRIBUTION
Department store sales showed little change from January
to February and, after allowance for seasonal variation,
were at about the same level as that prevailing last summer
and autumn. Freight-car loadings increased by a small
seasonal amount in February. Loadings of coal were con·
siderably larger than in January, while shipments of miscel·
laneous freight declined, and the Board's seasonally adjusted
index of total loadings remained at the January figure of
70 per cent of the 1923·1925 average as compaTed with 71
per cent in December and an average of 63 per cent for
1935.
COMMODITY PRICES
The general level of wholesale commodity prices declined
somewhat during the latter part of February and the first
half of March, following a six-month period of little change.
The recent downward movement reflected declines in prices
of farm products and foods.
BANK CREDIT
Excess reserves of member banks decreased by $650,·
000,000 during the four weeks ending March 18 and on
that date amounted to $2,4.00,000,000. This decrease reo
flected chiefly a transfer of funds to Treasury deposits at
the Reserve banks in connection with receipt of income taJ(~s
and of cash payments for newly.issued Government secUl?'
ties. Loans and investments of reporting member banks 111
leading cities increased rapidly in March and on the 18th
of the month were $525,000,000 higher than four weeks
earlier. Of this increase $190,000,000 represented a growth
in holdings of direct and guaranteed obligations of t~e
United States Government and $80,000,000 an increase In
other investments. Security loans both to brokers a~d
dealers and to others increased, and there was a substantial
growth in so·called "other loans", which include loans for
commercial purposes. Adjusted demand deposits of report·
ing member banks declined by $340,000,000 during the four
weeks ending March l8. Balances held for domestic ba~ks
increased at the turn of the month as banks in the intel'lOr
sold Government securities in New York in anticipation of
maturities. During the week ending March 18 balances de·
clined, partly as the result of banks throughout the coU?~ry
purchasing in the New York market Government secul'lUes
issued on March 16.