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Monthly Business Review OF THE FEDERAL RESERVE BANK OF DALLAS • (Compiled March 15,1937) r =Volume 22, No.2 Dallas, Texas, April 1, 1937 = This COpy is r eleased for pubIication in morning paper8- March 31 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Foderal Reserve Distriot February 1937 Bank debits to ind"d Dep t IVI ua I aoooun ts (18 01't'les ) .... ....... . $780,316,000 IVlio~r ~ent storo sales .................. . .... . . . ... .. . ~ ~abe trado salas (five lines) ...... . ........ . ...... . Valur~~ ank loans to momber banks at end of month ... . i' .. 223',247 COlD a ton ~ bui)ding permits (14 oities) . .... ...... ... . . . $ 4,093,928 CelD e\ p~. uotlOn at Texas mills (barrols) ............ . 460,000 401,000 Carr: s. Tm~nts from Texas mills (barrels) .... ....... . Co ero!adallures (number) ... .. . ....... . .......... . 18 Dailmm orola ailures (liabilities) . ...... .... . ... ..... . . . . $ 218,000 y avorago oil produotion (barrels) .... .......• ....... 1,493,773 Change from January - 12 . 0~ 5.8 0 - 4 .7 0 +$201,375 - 25.9% - 15.061 32.00/0 + + + 7 +$176,000 + 5.0% . Business activity in the ElevenLh District continued at a hIgh level in February. Department store sales registered lllore than the usual gain from January to February, and i~ceeded those in the corresponding month last year by per cent. Wholesale distribution, although declining seasonally as compared with the previous month, was 12 pel' cent higher than in February, 1936. Business failures ~ere more numerous and habilities were greater tha~ In the preceding month, yet in comparison with the Feb~ua~'y figures of other years they were at a low level. Bank Jehlts showed a seasonal recession of 13 per cent from hnuary, but the month's volume was 14. per cent above t at in the same month of 1936. . The daily rate of petroleum production in this district Incr~ased further in February and the first half of March, and IS now at the highest level in the history of the industry. In the western portion of the district many of the copper mines are operating at full capacity and operations at other mines are' being increased. El The total value of construction contracts awarded in the : eventh District, according to the F. W. Dodge Corporalion, Was 23 per cent lower in February than in the same month of 1936, but residential awards showed a year-toyear gain of 86 per cent. As compared with the previous month total contracts increased 26 pel' cent and residential contracts were up 30 per cent. The valuation of building permits issued at fourteen of the district's principal cities was down 26 per cent from the preceding month and 47 per cent from February last year. The outlook for agriculture and livestock improved somewhat in the past thirty days. Land preparation was advanced rapidly and a good start has been made with the planting of spring crops. Small grains, benefited by the better moisture supply and higher temperaLures, made satisfactory growth and are now in fair to excellent condition. Recent rains were very beneficial generally, but the excessive fall in some parts of the eastern portion of the district further retarded field operations which were already behind schedule. Livestock came through the winter in fine shape, and prospects are favorable for early spring grazing. Indications point toward large marketings of grass-fat cattle and sheep during the spring and early summer months. Market prices for livestock have recently shown considerable strength. Total loans and investments of weekly reporting member banks in the district's leading cities declined $1,647,000 in the fo ur weeks ending March 10, as the reduction in holdings of direct and fully guaranteed obligations of the United States Government more than offset the rise in loans and the increase in other investments. Although the daily average gross demand and time deposits of all member banks declined $14,994.,000 from January to February, they were $14.5,441,000 higher than the February, 1936, average. Federal Reserve note circulation rose $1,460,000 between February 15 and March 15, and in the same period member bank reserve deposits increased $1l,042,000. BUSINESS Wholesale Trade Wholesale distribution, as indicated by the dollar value of sales in fiv.e reporting f lines, declined by about the usual amount rorn January to February, but remained 12.0 per cent hove the total for February, 1936. Among the individual tInes, however, mixed trends were in evidence. Following he unusually heavy business in January, sales of dry goods i. fell off 6.4 per cent, which is contrary to seasonal, and the February increase of 4.2 per cent over a year ago was considerably smaHer than the similar percentage gain in January. The decline of 18.5 per cent in the farm implement business was larger than the average for this season, but sales were up 21.6 per cent from last year. Distribution of groceries was only 1.0 per cent lower than in January This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) -------------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW -------------------------------------------------------------------------------------------------------- 2 and exceeded that in February last year by 16.8 per cent. The drug business, while unchanged from the previous month, was 6.7 per cent higher than a year ago. Hardware sales showed a decline of 4.3 per cent from January, but evidenced a gain of 14.3 per cent over the year. Inventories at the end of February continued appreciably higher than a year ago in all reporting lines of trade except farm implements. Collections evidenced the usual decline at this season. CONDITION OF WHOLESALE TRADE DURING FEBRUARY, 19S7 Percentage of inorease or deorease inNot Sales Net Sales Stooks Ratio Fob. Jan. 1 to date February, 19S7 Feb. 28, 1937 colleotions oomparoa with oompared with compared with to acoounts same peried Fob. 29, Jan. 31, outstanding Feb. Jan. Jan. 81 last year 1086 1087 19S6 19S7 +17.7 +14.0 - 2.5 83.8 Groceries . ........... +16.8 - 1.0 30.2 Dry goode .... ... ... . + 4.2 - 6.4 + 9.1 +36.7 + 4.5 8.2 Farm implements .. .. . +21.6 -18.5 +19.0 + 1.0 - 1.8 50.3 +18 .1 +16 .6 + 5.6 Hardwaro ••.. . ...... +14.3 - 4.3 66.4 +11 .7 - 2.2 Drugs ..• . .. ......... + 6.7 .1 + 4.9 + Retail sales of reporting department stores in larger cities increased 5.8 per cent in February as compared with January, which was greater than seasonal, and maintained a Retail Trade gain of 11.0 per cent over the corresponding month of 1936. The improvement over the year occurred in spite of one less business day and one less Saturday in this February· Featuring the month's trade was the heavy demand for women's and children's apparel, indicating in part the early purchases of spring merchandise. Other departments show' ing large sales gains over the year were: domestic flo?r coverings; draperies, curtains, upholstery; silverware; gift shop; and luggage. Consumer preference for better quality merchandise' continues to broaden. Reflecting the stocking of merchandise for the spring trade, the dollar value of inventories held by repor~ing department stores increased 12.7 per cent between January 31 and February 28, and was 14..2 per cent higher than at the end of February last year. The rate of stock turnover in the first two months of 1937 dropped slightly below that for a like period in 1936. Collections in February on both regular and installme~t accounts were down somewhat in comparison with the preVI ' ous month and the same month last year. BUSINESS OF DEPARTMENT STORES Total sales (peroentago): Dallas Fort Wortb February, 1937, compared with February, 1036 ...... . .. . .. . . ...... . .... •. .. . ........• . .. +12.1 + 8.4 February, 19S7, compared with January, 1937 ... ... . ... . .... ... .. . ... ... . .. . . . •......• . . +14.5 +10. 0 January 1 to February 28, 1937, compared with same peried last year ...•............•...... +11.8 +10.1 Credit sales (percentage): February, 1937, eomparod with February, 1936 ........ . ...... .. ..... . .. . . ..... . . . . .. ... . +16.3 +11.7 February, 1937, eomparod with January, 1037 .... .. ........ .. ... . .. . .................. .. +14.0 +14.7 January 1 to February 28, 1037, compared with same period last year ...... . . . ....... . .... . . +15.5 +12.8 Stocks on hand at end of month (percentage): February, 1937, compared with February, 1936 .... . ......... ... . .... ................ . . . . +14.3 - 6.8 February, 1937, compared with January, 1937 . . . . ... . ........................... . .. .... . +13.2 + 2.8 Btock turnover (rato): Rato of stock turnover in February, 19S6 ..... . ..... . ........... . ... ... .. .... . . ..... .... . .24 .32 Rato of stock turnover in February, 1937 ... .... ...... .. .. .. .......... .. ................ . .81 .25 Rato ef stock turnover January 1 to February 29, 1036 .. .... .......... . ............ . ... . . .61 .44 Rate of stock turnover January 1 to February 28, 1937 ....... .. ...... ..... . .. . .......... . .48 .58 Ratio of February collections to open aocounts receivable and outstanding February I, 1937 ...... . 41.8 31.6 Ratio of February collections to installment accounts receivable and outstanding February I, 1937 . . 15 .7 10.6 Indexes of department stere sales: 85.8 75.0 104.7 88.4 99 .8 102.6 119.0 106.5 Indexes of department store stocks: Una<!justed-January, 1937 ... . ..................... .. ..................... . .......... . 56.6 56.7 UnadJustod-February, 1937 ... . ...... ..... ... . ...... .. ..... •. .... •...... • ........ .. ... 65.1 58.8 65.1 65.9 ~~:::~=~~b~~~y,l~~k:::: 67 .8 60.7 - Houston +14 .3 + 1.3 +13.0 San Antonio + 7.0 - 2.3 + 7.2 Others +10.5 - 3.4 +12.2 Total Distriot +11. 0 + 5.8 +11 .3 +10.7 + .3 +10.1 +13.2 - 6.5 +15.2 +12.3 - 1.2 +12.6 +15.3 + 6.7 +15 .3 +17.8 +14.S +10.0 +10 . 6 +21.6 +17.6 +14.2 +12.7 .27 .25 .52 .51 4S .2 .26 .24 .54 .40 41.0 11.6 .20 .10 .42 .41 37.6 15.0 .27 .25 .52 .51 SO.6 14.0 ~i~§~t~li~i;I;fti;;~ ~~ ~ ~::::::::::::::::::::::::::::::::::::::: :::::: :::::: 78.4 84.0 88.1 00 .9 71.2 71.8 78 .2 86.5 78.1 88.5 OS.O 105.4 :::::: :: :::::: :: :::::::: :::::: :: ::::::::::::::::::::::: 41.7 43.5 48 .5 46.8 55.4 58 .3 60 .2 57.7 57.8 64.1 66.4 66 .8 Although the number and liabilities of commercial failures in the Eleventh District in February were considerably larger than m January, they were at a low level for that Commercial Failures - month. The 18 firms defaulting in February had liabilities of $218,000. In January there were 11 insolvencies with an indebtedness of $4.2,000 and in February, 1936, 26 firrns failed owing $281,000. AGRICUL TURE The open weather during February and the early part of March enabled farmers to make rapid progress with land preparation and the planting of early spring crops. Corn planting has become general in south and central Texas and has begun in north Texas. The seeding of cotton is well under way in the Rio Grande Valley and is being extended northward. Toward the middle of March light to heavy rains fell over the major portion of the district, but the heaviest rainfall was in the eastern portion where land preparation was very backward on account of the excessive moisture in January and February. Although precipitation in west and Crop Conditions northwest Texas and eastern New Mexico was not so heaVY as in other sections, it relieved the dryness of the top-soil and left the ground in good condition for plowing. Small grains have shown a noticeable betterment through' out the district. In the western portion the wheat crop haS responded to the improved moisture situation, and reports indicate that plants are now making good growth. Wheat and oats in other sections are in fair to excellent conditioJ1' Growing conditions continued generally favorable for commercial vegetable crops in south Texas. Moisture SUPi plies are generally ample in all sections except the Coas tll MONTHLY BUSINESS REVIEW Bend area where additional rainfall is needed. The cold Wave at the close of February caused only slight damage to crops. PLANTING INTENTIONS OF TEXAS FARMERS, MARCH I, 1037 (In thousands oC acres) Acreage harvested - - - - - - - - - - - Indicated for Average harvest in Crop 1028-1032 1035 1036 1037 C orn ~~!,b;i::: 4,823 4,005 ::~ ::m ~w=:.:7:: : ::~. :::: ~:: : ::~: : .::~ Swcergo~!oes.. . .. .. . . . . . . . .. . . .. . . .. 4,505 1,210 80 047 3,338 200 44 56 310 80 710 ~~ ~~ :~~ 4,411 1,256 111 808 3,338 220 44 48 310 68 674 'Grown alone for nil purposes. Partly duplicated in hay acreage. SOURCE: United States Department oC Agriculture. January receipts from the sale of principal farm products in the five states wholly or partially attached to the Eleventh District, as estimated hy the United States De· partment of Agriculture, dropped 12.3 per cent below those ~n January last year. This decline was due chiefly to the Mwe.r ma~ketings of cotton this January in Arizona, New l' exICO, OKlahoma, and Texas. Income from marketings of Ivestock and livestock products was about the same as a Y$ear ago. Governmen t payments in the five states aggregated . 3,682,000 in January this year as compared with $635,000 In January, 1936. Cash Farm Income RECEIPTS FROM THE SALE OF PRINCIPAL FARM PRODUCTS (In thousands oC dollars) Receipts from: Total Farm Livestock and Iiv<>crops stock products receipts January January January January s $ 3,578 $ 1,414 $ 1,400 880 6,322 2,331 10,560 1,032 6,241 2,418 10,348 Total five states. ... $ 25,328 $ 31,047 $ 21,516 BOURCE: United Btates Department oC Agriculture. S 21,448 $ 46,844 5kr~~a~~.·.·. : : : : : : : : : : : : : NeIVM~~~o"" . . •. . .... Texas ............. ... ...... ........ .. 1037 2,752 6,356 1,641 1,334 13,245 1036 2,518 6,181 1,730 17,031 1037 1036 January 1037 S 4,166 7,245 7,063 3,665 23,805 Arizona January 1036 $ 4,087 3,550 12,422 4,157 28,279 -S 53,305 -------------------------------------Livestock Favorable prospects for early spring grazing obtain in virtually all sections of. the Eleventh District. During the first half of March raInfall over west and northwest Texas and eastern New MeXico was sufficient to relieve the dryness of the top-soil nd to give grass and weeds a good start. In the eastern a~£ of the district there has been an excess of moisture, an dry, warm weather is needed for the best growth of eeds and grass. The Department of Agriculture reported Mat cattle ranges in Texas were 76 per cent of normal on th arch 1, which was 1 point lower than a month earlier and r e same as a year ago. At 81 per cent the March 1 condiIOn of sheep and goat ranges was unchanged from Feb1 and was 4, points higher than a year ago. During e.ruary ranges improved 2 points in New Mexico and 3 POInts in Arizona. h ili pUi? 1 Livestock came through the winter in good shape and osses were few. The March 1 condition of livestock was reported by the Department of Agriculture to be about the 3 same as on February 1 this year and March 1 last year. Breeding animals were reported to be strong and prospects indicate a large crop of calves, lambs, and kids. According to the Department of Agriculture the carryover of wether lambs in Texas from the 1936 lamb crop was very large and a heavy marketing of these grass·fat yearlings in April, May, and June is in prospect. Wool production in Texas during 1936, which was estimated by the Department of Agriculture at 64,,265,000 pounds, is the second largest crop on record and compares with 59,220,000 pounds produced in 1935 and 74,800,000 pounds shorn in 1933. The 1936 production represented 18 per cent of all wool shorn in the United States as compared with 16 per cent of the total in 1935. Production in Arizona and New Mexico amounted to 4,536,000 and 15,904,000 pounds, respectively, representing moderate declines from the previous year. Texas mohair production totaled 13,400,000 pounds in 1936, which was 4,00,000 pounds larger than the 1935 clip and 84. per cent of the United States production of 15,986,000 pounds. Production in New Mexico amounted to 860,000 pounds in 1936 as compared with 920,000 pounds in 1935. Wool and Mohair Production The estimated number of livestock on Texas farms on January 1, 1937, was 13.8 per cent larger than a year earlier . The number of sheep, estimated at 8,920,000 head, exceeded last year's total by 21.2 per cent, and was the highest for any year on record. During 1936 the number of goats increased 12 per cent; hogs, 14 per cent; cattle, 10 per cent; and horses, 2 per cent. The number of mules declined 6 per cent. The total value of all classes of Texas livestock showed an increase of 7.7 per cent over a year ago, the higher values of cattle, sheep, and goats accounting • for most of the gain . In Louisiana the number of livestock was 4.8 per cent higher, and livestock values increas.ed 8.7 per cent. The tota"1 number and aggregate value of livestock on New Mexico farms showed only small changes as compared with a year ago. Livestock on Farms NUMBER AND VALUE OF LIVESTOCK ON FARMS AS OF JANUARY I, 1036 AND 1937 Numhor Avern\e price Total value (ooo's omitted) (pcr ead) (ooo's omitted) 1086 1037 1036 1037 1037 TexllS: 1036 707 603 $ 67.00 564.00 Horses and colts .......... S 47,144 S 44,255 102.00 787 837 06.00 Mules and mule oolts . .... 80,586 80,214 7,547 6,861 21.80 22.20 164,000 152,158 All cattle and calv.es ... . .. 1,402 1,388 31.00 29.00 43,462 Milk cows· .. .... ........ 40,252 1,455 1,058 8.60 10.20 14,185 14,800 Hogs, inol\ldin~ pigs ..... . 7,350 5.40 5.70 47,771 AU sheop and ambs .. . .. . 8,020 41.764 2,700 3,024 3.80 2.40 11,401 Goats and kids ........... 6,480 Total, six olllSSes ... -22,643 - 10,005 $365,867 $389,680 $ 7,051 S 6,843 Louisiana: Horses and oolts .......... Mules and mule oolts ..... All onttle and oalves . . .... Milk cows· .............. Hogs, inoludin~ pi~ ...... All sheep and am ...... 123 201 1,045 298 818 260 122 100 1,035 304 730 248 Total, fivo olllSSes ... Now Mexioo: Horses and oolts ...... . ... Mule and mule oolts ..... . All oattle and oalves ...... Milk oows· . ..... .. ..... . Hogs, inoluding pigs ...... All shoop and lambs . . .... 2,447 2,334 138 18 1,030 76 72 2,477 141 17 1,039 76 64 2,450 S 65.00 110.00 10.40 32.00 7.20 3.10 $ 62.00 85.00 27.40 43.00 11.20 5.30 3,71l 3,742 Total, five olllSSes ... .Cows and heiCers two years old and over kept Cor milk. SOUROE: United States Department oC Agrioulture. S 56.00 00.00 18.60 20.00 7.00 3.20 $ 53.00 85.00 28.00 45.00 10.60 5.50 22,132 20,225 0,536 5,880 812 10,701 10,237 8,816 5,782 788 $ 67,000 $ 52,441 $ 8,400 1,360 28,460 3,268 808 13,224 S 7,406 1,448 20,130 3,420 681 13,378 S 52,342 S 62,142 4 MONTHLY BUSINESS REVIEW Movements and Prices Cattle and calf supplies at Fort Worth for February were seasonally 25 and 30 per cent, respectively, lower than in January and the cattle run was down 28 per cent from a year ago. Sheep receipts continued in large volume, being 25 per cent above the previous month's supply and nearly double those in February last year. Hog arrivals were up 13 per cent from January and were in about the same volume as a year ago. An active demand for all classes of cattle at steady to higher prices featured cattle trading at the Fort Worth market during the past thirty days. In the second week of March choice offerings sold at the best prices in several months. Lamb prices advanced sharply around the middle of March and some good to choice spring lambs cleared at $11.25 to $12.00. The hog market was up slightly over the period. FORT WORTH LIVESTOCK RECEIPTS (Number) Fobruary Fobruary Changeover January year 1937 1930 1937 51,323 - 14,892 53,371 Cattlo ........... . . .. . .. . 38,479 29,814 21,244 332 20,912 Calvos ..... . ....•....... 37,045 42,000 + 584 42,584 34,510 22,084 +20,988 43,072 r~:p:::::::::: ::: : : :: :: Change over month - 12,844 - 8,002 + 4,039 + 8,550 COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight) Fobruary February 1037 1036 $ 8.25 Boef .toers ....... . ..... .. . ... ...... .. . •. ........ . $ 9.75 7.25 7.50 Stocker steers .. ........ ....... ............. . ..... . 9.25 11 .00 Heifers and yearlings .... ...... ............. . . .. . . 0.00 0.00 Butcher cows ......... . ............... ....... . .. . 7.00 7.65 Calves ........... .... ........... ..... .. .. ... ·.· . 10.35 9.85 Hogs ....... ........ . .. .... . .. . ............... .. . 9.50 10.00 Lambs ...........•... ..... ..... ... .......... .. .. January 1037 $ 0.75 7.15 0.85 6.00 7.05 10.35 10.00 FINANCE Operations of the Federal Reserve Banlc Discounts for member banks in this district continued in small volume, the total of $120,000 on March 15 comparing with $41,000 on February 15 and $178,000 on the same date last year. Industrial advances declined $4,7,000 over the month and $4.61,000 from a year ago. Holdings of United States Government securities were unchanged from a month earlier, but exceeded those of a year ago by $9,966,000. Federal Reserve note circulation continued the usual downward trend until the end of February, but there was an upward movement in the first half of March. Total note circulation of $89,244,000 at the middle of the month was $1,460,000 higher than at midFebruary and $14.,184.,000 above that last year. Member bank reserve deposits increased $1l,042,000 between February 15 and March 15, and the record total of $180,103,000 on th~ latter date was $43,595,000 larger than at this time last year. Due to the large excess reserves member banks apparently had little difficulty in meeting the 16 2/3 per cent increase in reserve requirements which became effective March 1. CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) Maroh 15, March 15, 1937 1986 Total oMh reserves . .... . .................. . $202,312 $148,607 Discounts for member banks .... ............ . 120 178 Othor bills discounted .. . ...... .... . ... .. . .. . None None Industrial advancos ........ . ............. . . . 1,252 1,713 Bills beught in the open market . .... ........ . 87 133 United States Govornment securities ......•.. . 04,960 85,000 All other investments ........... . .......... . o 10 Total carning Il88Cts ....................... . 06,431 87,034 Member bank reserve doposits ............ . . . 180,103 136,508 Federal Reservo notes in notual eiroulation ... . 89,244 75,060 Commitments to make industrial advances . .. . 447 587 Condition of Member Banks in Leading Cities Fobnmry 15, 1987 $194,213 41 NOllO 1,209 80 94,966 3 96,a05 109,061 87,784 486 Weekly reporting member banks made a further reduction of $6,686,000 in their holdings of direct and fully guaranteed obligations of the United States Government in the four weeks ended March 10, but the total of $216,307,000 on that date was $19,741,000 greater than a year ago. Investments in other securities on March 10 were $2,051,000 higher than four weeks earlier and $10,578,000 greater than on March ll, 1936. Loans on securities were up $82,000 over the four weeks and $3,24.0,000 over the year. "All other" loans (agricultural, industrial, and commercial loans) , after reaching a low point for the year on February 24, turne~ upward in the subsequent two weeks and on March 1 were $2,906,000 higher than on February 10, a~d $22,648,000 above the total on the corresponding date ]~ 1936£ During the four weeks there were further declmes 0 $4.09,000 in time deposits, $1l,721,000 in interbank deposits and $10,555,000 in United States Government deposits: On the other hand, adjusted demand deposits ro~e $5,1l8,000. Balances with other banks on March 10 weI~ $23474000 lower than on February 10, and $20,982,0~ , , . d) II' below those on March ll, 1936. These banks mcrease t 1.e reserves with the Federal Reserve Bank $7,804,000 dunn3 the four-week period, and the record total of $114,,88.6,00 on March 10 was $30,128,000 higher than a year earlIer. CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES (In thousands o[ dollars) February 10, March 11, March 10, 1037 1030 1937 $102,864 $146,692 United States Governmont scourities . .. . ... . . . $187,116 Securities fully guaranteed by United Stntes 30,129 Government . . . ....... . .... . . . . ...... . ... 20,191 49,874 55,478 All other 8tocks, bonds, and socuritie8. . . . . . . . . 57,520 40,951 45,904 Loans on securities. . . .. .. . .. .. . . .. .. . . . . . . . 46,076 42,836 164,075 All oth~r loans .. . . . .. . . .. . .. .. . .. . .. .. . . .. . 166,981 144,333 210,009 Tot3110ans....... .. . .... . .... . ....... .. . • . 213,057 187,160 386,067 Demand deJlO8its-adju8tedo. . . ...... . . . .... 301,785 357,454 120,814 20,482 ~::rt~g~~·Go~e;~;,;c~i 1~~:~~~ l~a~~ 198,165 Intorbank deposits .. . . . . . . . . . . . . . . . . . . . . .. . 186,444 181,543 184,761 Balanoos with domestic banks . . . . . . . . . . . . . . . . 161,287 182,200 107,082 Reservo with Fedoral Reserve Bank. . . . . . . . . . 114,880 84,758 Bill8 payable and rediscounts with Federal N ne Resorve Baak.. . . . .. . . .. . . . . . . .. . . . . .. .. . Nono Nono o. ()JIllI °Demand deposits othor than interbank and United States Govornment, loss oash It reported as on hand or in process of colleotion. dopositS·.:: :: ::: ::: --------------------------------------------------111ere was little change between January 31 and February 28 in the volume of outstanding acceptances executed by aCcepting banks in this district, the total on the latter date being $1.,579,977 as compared with $1,553,736 on the former date. During the month outstanding acceptances executed against export and import transactions increase~ $3,003 and those based on the domestic shipment an storage of goods rose $23,238. Acceptance Market Deposits of The gross demand deposits of member Member Banks banks in this district averaged $1,079,. 858,000 in February, which represents a further decline of $14,968,000 as compared with the previous month but a gain of $142,721,000 over February last MONTHLY BUSINESS REVIEW year. Average time deposits were in about the same volume as in the preceding month and were $2,720,000 higher than a year ago. GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS (Average ef daily figures-in thousands of dollars) Combined Total Reserve City Banks Country Banks ---=Gro s s - - - Gross Gross demand Time demand Time demand Time Montb and Year deposits deposits deposits deposits deposits deposits Debits to individual accounts at hanks in eighteen reporting cities in this district were 14.4 per cent higher in Feb· ruary this year than in the same month of the preceding year. As compared with January, however, there was a decline of 12.9 per cent because of the short month and seasonal factors. Debits to Individual Accounts DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) February February Potg.obango January 1936 f;brular y.. . .. .......... . S "'oro I ~ril.",:: : : : : : : : : :: :: :: : J ay.. .. .. .. .. .. . . .. • .. . J~lle .. .................. A Y. ...... ........ ..... s.:'~Us\. ................ otto,!:r ..er............... .......... . .... N D~em~r ..........•.... om r. ... .. .. ....... 937,137 933,523 927,928 926,927 943,139 999,460 988,321 1,017,186 1,061,297 1,097,227 1,108,410 $107,078 105,804 195,575 104 ,602 106,703 199,576 190,824 190,602 200,763 200,783 200,898 $530,276 531,473 527,743 529,858 540,958 578,721 570,488 585,513 608,277 627,187 632,243 $109,664 108,414 107,560 107,863 108,065 109,652 109,534 109,364 109,623 110,105 110,280 $406,861 402,050 400,185 397,069 402,181 420,739 417,833 431,673 453,020 470,040 476,167 $87,414 87,390 88,015 86,820 88,638 89,924 90,290 00,238 91,140 90,678 90,618 199,824 100,708 621,186 607,432 100,726 100,355 473,640 472,426 90,008 90,443 1937 ~abuary .... .. ........... 1,094,826 o ruary .... .. .......... 1,079,858 ADJUSTED DEMAND AND TIME DEPOSITS OF MEMBER BANKS ON SELECTED "CALL" DATES (In thousands of dollars) Combined Total Reservo City Banks Country Bankst Call dates une ~~, 1088 .... . ....... b Jueo. 3 ' 1033 . . . . . . . . . . . . D~e 30, 1034. . . . ..•.. .. . Demand Demand Demand deposits Time deposits Time deposits Time ndjusted' deposits adjusted' deposits adjusted· deposits $379,662 444,205 495,520 551,276 583,644 642,167 607,486 761,530 $189,863 100,000 197,280 196,066 105,210 198,495 200,061 200,780 $176,720 194,914 232,911 242,422 276,556 202,620 327,353 344,572 $114,301 107,497 111,854 112,117 113,421 111,851 110,966 110,506 $202,933 240,201 262,609 308,854 307,088 340,538 370,133 416,958 $75,562 82,503 85,426 83,040 81,780 86,644 89,605 00,274 Jun' 201, 1034 ..... . , . . . . . De 0 a ' 1035. . . . . .. . . . . . Ju o. 3~' 1935... .. . • . . .. . D no a ' 1036. . . .. . . . . . . . ec, 1, 1936....... .. ... r ' Demand deposits other than interbank and United States Government, less cash items in rn OCess of collection and, prior to December 31, 1035, less oash items reportcd on band but not Process of collootion. Ber tOutl~ing banks in reserve oities which have been authorized to oarry country bank reves oro lUoludod witb country bonks. 5 Abilene ... . ............ . Austin ... . .... .. ....... . Beaumont . .. ....... .... . Corsioana .. . ........ , .. . Dallas . ...... . .. . . ..... . El Paso .............. .. . Fort Worth ... . . . . . ... . . . Galveston ........ ...... . Houston ............ ... . . Port Arthur ............ . Roswell. ............... . Son Antonio ........... .. Shreveport.. .. .... .. .. . Texarkana· ...... . ..... . . Tueson ......... . .... . .. . y~~~::::::::::::::::::: Wiohita Falls . ... . . . .... . 1037 S 7,240 20,080 23,300 3,430 223,580 26,074 74,402 26,448 102,317 8,114 2,734 63,860 40,698 7,405 12,256 13,831 13,344 12,505 1936 $ 6,623 22,959 22241 2,611 102,031 22,942 07,225 21, 233 165,970 6,817 2,287 60,203 35,486 6,658 9,287 11,807 12,577 12,077 over yoar 0.5 +26.7 4.8 +31.4 +15.9 + 13. 7 +10.8 +24 .6 + 15 .0 + 19.0 +19 .5 5.2 + 14.7 + 30.9 +32.0 +17.1 6.1 - 2.9 + + + + Potg. ohange 1037 S 7,660 26.417 .24,001 3,994 264,167 30,368 88,304 20,683 222,231 9,186 3,600 70,190 40,000 9,163 11,560 14,138 15,902 15,333 over month - 5.4 + 10 .1 - 6.8 - 14.1 - 15.4 - 14 .1 - 15. 7 - 10 .6 - 13.5 - 11.7 -24.2 - 9.7 - 16 .9 - 10 .2 6.0 - 2.2 -16. 1 - 17 .9 + Total.. .. .. ... $780,316 $681,834 +14.4 S805,805 - 12.0 ·Includ.. tbe figures of two banks in Texarkana, Arkansas, looatod in the Eighth Distriot. Although savings deposits at 117 reporting banks in this district showed little change during February, the aggregate of $155,098,136 on February 28 was 40.9 per cent greater than on the corresponding date in 1936. Savings Deposits -------------------------------------------------------------------SAVINGS DEPOSITS February 20, 1036 Fobruary 28, 1937 ~~lumont ..... . ... .. . , ... .... . . .. . Number of roporting banks 3 +10.4 - 8. 9 + 1.6 + 7.6 .4 -1.1 + .5 .1 + .5 + .1 + .5 +1.1 0.0 - 1.4 - 1.1 + .7 + 4.9 340,057 $155,087,495 + .03 depositors depOSits Ravings deposits $ 3,607,206 25,940,512 7,610,143 12,527,138 10,950,828 28,152,524 2,356,920 16,141,760 11,842,592 6,259,654 3,371,977 27,827,882 9,065 77,204 12,368 34,704 16,921 06,488 5,654 . 18,261 22,367 9,494 6,820 52,656 $ 3,512,890 24,490,090 6,192,356 11,530,821 10,435,434 2.8,947,589 2,215,883 15,284,478 10,277,509 5,773,970 3,318,545 25,870,207 + 5.0 +22.0 + 8.6 + 4.9 - 2.7 + 6.4 + 6.6 $155,098,136 331,511 $147,868,780 349,522 3 26,220,733 7,560,886 12,541,621 10,893,186 28,136,887 2,344,384 15,066,766 11,341,730 5,335,733 3,408,764 27,648,031 dopositors depOSIts savings 117 5 a $ 3,620,775 Peroentage ohange 'fotal. ..... .. ........ .. . AUo tll a Falls ......... . ... .... . . . .. 10 2 9,306 80,1 88 14,000 36,664 17,007 69,420 5,468 20,203 23,863 9,530 6,604 56,705 Amount of 71 ~ :::. 2 3 4 Percentage obange ovor month in savings deposits Number of o lefa .... .. . . .. . ...... . •.....• ~~~W~r:::::::: :: : ::::::: ::::: ::: Gal ves1o;h . .. ......... , .... .... .. . Amount of savinJls depOSits Amount of 0,088 79,870 14,214 36,917 17,199 69,791 5,566 20,515 23,895 0,495 6,625 56,347 3 8 January 31, 1937 Number of savin~ savings savin~ over year in + 2.7 Number of savings depositors - ------------------------------------------------------------------------------------------------------------DISCOUNT RATES OHARGED BY MEMBER BANKS DURING MARCH, 1037 Prevailing ratos Fort Worth El Paso Dillias !tatoFoharged oustomers on prime commeroial papor suob as is now eligible for radisoount under tbe 1~-7 6-6 2*8 !tate ~eral Reserve Aot ..... . ................. . ............ ...... . ...... . .. . ............ . 4-6 nat 0 arged on lonns to other banks secured by bills receivable .... .. ... . . . ................. . . e. on loans Becured by prime Btock exohange or other eurrent collatcral (not inoluding loans placed In othor markets through oorrespondent banks): ~i':~~~':::: : :::: : ::::::::::::: :: ::::::: : ::::::: : ::::: :::: :::::::: ::: : :::::::::: nate Olarged ou commodity paper seoured by warohouse reoeipts, cto . ... . . . , . .. ... •...... .. , .. . ltat I o on oattle loans .. . ... . .. . ........ ... . ...... . .... . ........ . .... . . . ... .. .... .......... . 4~ 4-6 2-8 6-8 6 6-8 6-8 6-8 4-8 4-8 5-8 6-10 Houston Son Antonio Waoo 4-7 6-6 3-7 0 2-6 6-6 3-7 3-7 2-7 7- 10 6 6-7 6-8 6-8 6 5-8 8 6 ----------------------------------------------------------------------------------------------INDUSTRY Cottonseed P"oducts February oil mills with the l1lonth last year. Cottonseed operations of Texas cottonseed declined sharply as compared previous month and the same crushed dropped 4,9,6 per cent from January to February and fell 4,7,8 per cent below the February, 1936, volume, Declines from the previous month in the production of products ranged from 45.1 per cent for cake and meal to 53.4 per cent for linters; over MONTHLY BUSINESS REVIEW 6 the year the decreases in output were from 4,2.1 per cent for linters to 53.9 per cent for hulls. Shipments of products from Texas mills were lower than in either comparative period. Due to the large scale operations during the fall months, cottonseed crushed and products produced in the first seven months of the current season exceeded by a small margin similar operations in the corresponding period last season. The excess of shipments over production during February caused a decline in mill supplies of products; and stocks of crude oil, cake and meal, and hulls on February 28 were sharply lower than a year ago. Operations at all United States mills declined seasonally from January to February, but exceeded those ' of the same month last year by about 20 per cent. End-of-month stocks of crude oil and cake and meal at these mills were materially lower than a year earlier despite the substantial increases in production during the current season. STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texas United States August 1 to February 28 August 1 to February 28 Cottonsood received at mills This season Last season This sOllSon Last season (tons) . . .. . . . . . . . . . . . . . . . . . 893,855 942,744 4,328,703 3,565,444 Cottonsood erushed (tons) . . . . . 862,054 858,568 3.780.419 3.283.214 Cottonseed on hand Feb. 28 (tons) .. . .. .. .. . .. .. .. .. .. . 41,677 100.588 570.210 371.805 Produotion of produots: Crude oil (pounds). . . . .. .. ... 244,572,109 242.543,369 1.132,709.388 989.491.414 Cake and meal (tons) ....... .. 400,269 396.776 1.692.500 1.485.591 Hulls (tons) . . . .. . .. .. .. .. .. . 228,833 232.644 9oa.519 848.353 Lintors (running bales) . . . . . . . . 185,900 168,437 927.523 743.379 Stocks on hand Feb. 28: Crude oil (pounds). . .. .. .. .. . 8,375,320 33.985.001 38.917.724 89.497.926 Cake and meal (tons). .. . .. . . . 57,168 70,008 198.708 321.843 Hulls (tons) . . . . .. . .. .. .. .. .. 43,094 86.066 149.604 154.085 Lintors (running bales) . . . . . . . . 59,087 56.580 210.041 176.010 SOURCE: Bureau of Census. Textile Milling The domestic consumption of cotton was maintained at a high rate in February. Although total consumption dropped from 678,064 bales in January to 664.,439 bales in February, due to the smaller number of working days, there was a small gain in the daily rate. As compared with February last year aggregate consumption was up 28.8 per cent. Total consumption for the first seven months of the 1936-37 season amounted to 4,,512,634, bales, a gain of 27.8 per cent over the same period of the 1935-36 season. Domestic mills continued to make large purchases of raw cotton. Consuming establishments held 2,056,144 bales at the end of February, a decline of only 10,158 bales as compared with stocks a month earlier and an increase of 650,815 bales over holdings a year ago. COTTON CONSUMED AND ON HAND (Bales) February February August 1 to February 28 1937 1936 This SCIISon Last SOllSon Cotton'growing states: Cotton consumed . .. .. ... . . . 553.553 Cotton on hand Feb. 28 inConsuming establishments. Publio storage and com· presses ....... . ..... . . . United States: Cotton consumed .. . .. .... . . 664.439 Cotton on hand Feb. 28 inConsuming establishments. Public storage and com· presses . .............. . SOURCE: Bureau of Census. Cotton Movements 431.387 515.977 3.772.715 2.958.729 1.719.741 1.181.055 5.856.188 7.124.409 4.512.634 3.530;358 2.056.144 1.405.329 5.965.789 7.247.508 Seasonal declines in the receipts and exports of cotton at Houston and Galveston were in evidence during February, and the month's totals were smaller than in the same month of 1936. Combined receipts were down 39.1 per cent from the previous month and 52.4 per cent from a year ago. Exports decreased 25.4 per cent as compared with January and were 9.1 per cent lower than in February, 1936. Although the foreign exports of cotton from the United States decreased from 538,280 bales in January to 462,517 bales in February, the latter figure was 56,495 bales, .or 13.9 per cent, larger than in February last year. Total shIp, ments for the first seven months of the 1936·37 season amounted to 3,897,599 bales, a decline of 11.6 per cent from the corresponding period of the previous season, but a gain of 19.8 per cent over the same period two years ago. Shipments to Japan in February were noticeably larger than in either January this year or February last year. Following the decline during the first three weeks of February, the price of cotton rose rapidly during the sub· sequent three weeks and at the middle of March was at the highest level since 1930. COTTON MOVEMENTS THROUGH THE PORT (Bales) February February 1930 1937 59.594 33,537 Receipts ........ ......... .. . . 134.696 153.831 Exports . . ....... . .......... . Stocks. February 28 ... ...... . OF GALVESTON August 1 to February 28 This season Last season 1.609.739 1.462.m 1.369.554 1.012'520 602.377 674. COTTON-GALVESTON STOCK STATEMENT (Bales) February 28. 1937 7.700 For Great Britain . .... .................................. . 1.700 For France ............... .... . ............... ·· ...... · .. 48.900 For other foreign ports .. .... ..........•................... 5,000 For coastwise ports ...................•.......... . ...... .. 539.077 In compresses and depots ................... ...... ........ . Total............................ .. . .......... 602.377 February 20. 1936 9.000 1.800 30.700 2.500 630,620 - 674.520 COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) August 1 to February 28 February February This season Last seas en 1936 1937 1.212.086 1,588.801 81.742 33.779 Roccipts ...... . ... . .... . .... . 921,940 1.300.405 145.849 101.156 Exports .. . . . .............. .. 413.489 572.641 Stocks. February 28 ......... . SEASON'S RECEIPTS. EXPORTS. AND STOCKS OF COTTON AT ALL UNITED STATES PORTS-(Bales) August 1 to February 28 This SOllSon Last seaBen 0,276.020 Receipts .................... . ................•.... · · •··· . 5.843.544 850,260 000.8001~ Exports: United Kingdom ...... . . . . .. .. .... ............. . 582.305 558. France ........... . ....... .. ...... ... .... · .. · .. . 234.972 252.04 0 453.283 552.5 00 472.702 696,798 1.057,625 1.114.93 8 237.452 235.5 S1 AU other countries .... . . . . ... .... . •....... . ...... ~!S~~~~~~~ ~ ~:: ~ ~ ~ ~ ~: ~: ~: ~:::::::::::: ~::: ~:: Total exports.. ......... ................ ...... .. ...... ... Stocks held at aU United States ports. February 28......... .. -3.807.599 2.158.500 - 4.409.619 2.420.775 SPOT COTTON PRICES-(Middling basis) (Cents per pound) February. 1937 Now York .......•......• . ....•..... . •.... . New Orleans ... . ... . ...................... . DaUas ... . ... .......... ............ .. .... . H~~:.ot~;'-::::::::::::::::::::::::: :: ::: :: : High 13.34 13.34 12.65 12.02 12.91 Low 12.05 12.79 12.33 12.55 12.56 March 15. 10S7 14.86 14.60 14 .20 14.40 14.36 ---------------------------------------------Reflecting the continued heavy demand for petroleum products, the daily average production of crude oil in the Eleventh District rose Petroleum 7 MONTHLY BUSINESS REVIEW to a record high level during February. On February 1 production allow~bles were raised 80,698 barrels in Texas and 4,800 barrels in New Mexico, and further increases Were put into effect in these states on March 1, foreshadowing an even higher output of crude oil in March. The district's daily average production in February rose to 1,493,773 barrels, a gain of 71,355 barrels over January this year and 304,,873 barrels over February last year. The daily production rate in Texas during February was 71,719 barrels greater than in the preceding month, most of the increase occurring in the west Texas, south Texas, and Texas Coastal fields. The daily output in New Mexico averaged 4,,531 barrels higher than in January, but a further decline of 4,895, barrels occurred in north Louisiana. Drilling activity in this district showed a further contraction. Well completions in the four weeks ending February 20 numbered 961 as against 1,016 in the preceding four weeks. Despite the larger percentage of failures in the latest period, initial production from successful oil wells amounted to 1,143,497 barrels as compared with 1,027,426 barrels in the previous period. Commercial reports indicate that the crude oil market has remained firm. OIL PRODUCTION (Barrols) Inorease or dcerease over January, 1937 February, 1987 Total Daily Avg. Total Daily Avg, 172,400 188,450 - 1,415,950 252,600 + 228,850 + 8,105 +15,050 + 8,383 +28,986 +11,195 1,328,775 96,896 73,102 - 1,748,050 150,200 - 371,050 +71,719 + 4,531 - 4,805 1,493,773 -2,260,300 ~ortb Texas . . , , , . . ... ' .... . , E oat Texas .. . .. , , ..... . , . . ,. Sonst Texas ."", ..... , . . . . ,. T uth Texas .......... , ..... , Cxns Coastal .............. . . 3,954,200 6,113,300 15,640,850 6,029,100 5,328,250 141,221 218,332 558,602 215,325 100,295 N Total Texas ... , ....... ,. NCW Mexioo .......... " ..... 37,065,700 2,713,100 2,046,850 41,825,650 orth Louisiana ..... , , ...... Total District. , ........ .. --- -- - -+71,355 FEBRUARY DRILLING RESULTS ProGIIS ComWells pletions duoers 9 95 181 North TellIS ................... . 5 163 206 West TeXllS .................... . 2 186 193 East TellIS , .................. .. 11 164 247 South TellIS .................. .. 4 58 80 ToxllS COlISta!. ..... . ......... .. . Total TeXllS ... , ............ , New Mexioo ......... . ......... . North Louisiana ..... , ..... . .... . 907 39 15 77 38 5 72 18 23,631 850,591 601,610 71,754 19,676 210 4 5 1,076,271 64,807 2,410 219 215 1,143,497 1,027,426 February 27, Fobruary 27, 81 666 85 '3 7 "February totals, distriot ,. , .. . .. , . 061 708 34 tJanuary totals, distriot ...... ,. .. . 1,016 766 35 "Fobruary figures represent four weeks ended Fobruary 20, 1987. tJanuary 6guros represent four weeks cnded January 28, 1937. CRUDE OIL PRICES (Prioe per barrel) Initial Produotion Failures 1937 S1.20 1.27 1.41 1.08 1.22 North and lVest central TeXllS ............................ , , ElISt oontral TeXllS . . ............. , ..................... .. TexllS Gulf ooast .. .. , ........................ ,., ..... . .. . Wost TellIS- New Moxioo . . . ........ ..... ...... ..... ..... . North Louisiana ......... , ...... . ... . ................... . NOTE: Prioos quoted apply to oil 40 gravity and above. "Price for a oomparablc grade of oil is not availablo. SOURCE: "The Oil Weekly", Houston, Telas. 1936 $1.08 1.15 " 1.10 The value of construction contracts awarded in this district in February, as reported by the F. W. Dodge Corporation, totaled $9,645,600, an increase of 25.6 per cent over January but a decline of 23.4 per cent from February last year. Residential awari:ls in February showed a gain of 30.3 per cent as compared with the preceding month and 85.9 per cent over a year ago, and the February total of $4,4,03,700 exceeded that for any other month since October, 1929. Building Building permits issued at fourteen Eleventh District cities in February had an estimated value of $4,,093,928, reflecting a falling off of 25.9 per cent from January and 4,7.0 per cent from a year ago. These declines, however, were due principally to the smaller figures reported for Dallas and Houston. The number of permits issued was considerably larger than in either comparative month. BUILDING PERMITS February, 1937 1~trillo .. . ,. , . . ... , .. B sm .......... .... .. Ceaumont ............. D~Ir.us Christi. ... , .... ~p:o: : :::::::::::: : G0rt Worth ......... .. , nalvcston .......... ... pouston . ..... , ..... , .. sort Arthur ........... n Antonio ...... . ... , Wreveport ...... , ... , , Sh W!:ia 'FaliS: : : : : : : : : : Fobruary, 1936 Valuation No. 28 $ 93,662 266,254 114 117,801 187 247,726 145 435,318 383 117,008 85 275,805 170 103,962 84 1,347,210 435 131 82,465 578,339 248 850,823 184 51,695 49 24,870 15 26 142 78 78 347 50 118 74 387 112 101 02 34 10 No. Total. .......... 2,158 -$4,093,028 - - -1,789 - Valuation S 43,295 456,432 102,232 257,060 2,140,001 53,171 284,975 20,013 8,061,612 48,344 149,012 136,650 30,806 18,575 $7,720,358 Peroentage ohange valuation over year +116.3 - 41.7 + 15.2 3.6 - 79 .7 +121.0 3.2 +419.5 - 66.0 + 70.6 +288 .1 +156.7 + 20.6 + 33.9 - - 47,0 No. 10 $ 45,078 127 220,002 02 42,260 101 305,481 301 570,753 119,340 85 124 280,231 155,717 80 241 2,906,605 52,124 90 187 415,652 110 853,157 27 30,046 8,950 7 1,600 Although the February production of Portland cement at Texas mills declined 15.0 per cent as compared with the previous month, it was 25.1 .per cent larger than in the same month of 1936. Shipments for the month increased 32.0 per cent over January and 23.7 per cent over February last year. For the first two months of 1937 production and shipments were 60.8 per cent and 9.0 per cent, respectively, larger than in the same period of 1936. Stocks on hand at the mills declined 2.4, per cent from J anu- Cement Pereentage ehange valuation Valuation ovor month January through February January, 1937 $5,524,305 r 03 7 21.0 . 178.8 - 18.0 - 24 .0 1.1 1.6 - 33.2 - 53 .7 + 58 ,2 + 30.1 .7 + 32.4 +177.9 -- 25.9 1937 No. Valuation 47 $ 130,640 241 486,346 220 160,061 246 558,207 684 1,015,071 170 237,347 294 556,036 164 250,670 4,253,815 676 230 134,589 008,991 435 703,080 244 00,741 76 22 38,820 8,758 1936 No. Valuation 48 $ 86,620 206 1,255,777 175 322,070 150 382,500 766 3,148,366 07 05,264 220 867,375 156 45,574 4,755,533 656 181 73,753 386 638,901 165 220,853 61 67,649 17 81,570 -50,618,323 - - -3,383 - $11,991,904 Percentage ohango valuation over period + 61.2 - 61.3 - 50.3 + 44.6 - 67.8 +140.1 - 35.9 +469.8 - 10 .6 + 82.5 + 55.6 +218.8 + 34.1 + 7.1 - 19 .8 ary 31 to February 28, but the total on the latter date exceeded that a year ago by 51.5 per cent. PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT (In tbousands of barrels) Peroentage ohange from January 1 through Percentage February January February Fobruary ohango 1936 1937 1937 1937 over year - 15 .0 469 +25.1 1,021 Produotion at Toxas mills. +60,8 +23,7 491 +32.0 863 Shipments from Toxas mills + 9.0 Stooks nt end of month nt Texas mills .......... . . 888 - 2.4 +51.5 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) Volume of production, employment, and trade increased more than seasonally in February and wholesale prices of industrial com.m odities continued to advance. INDUSTRIAL PRODUOTION I I A PRODUCTION AND EMPLOYMENT I \ J / '"\ ~ I \. h 00 \.\ 1/\ V V V\ h I IV A 00 ro I\f' J ~ 00 00 00 . 192.9 19~O t9!t 1932 1933 1 9~4 1930, 1938 1931 Index of physical volume of production. adjusted for seasonal variation. 1923-1926 average 100. By months. January. 1929. to February. 1937. = WHOLESALE PRICES 'E" OIMT 120 'DleINT I 20 110 I 10 100 00 I00 M [\.,. 70 .0 1928 telK) Value of construction contracts awarded this year, according to the F. W. Dodge Corporation, has been considerably larg·er than a year ago, reflecting an increased volume of private residential building and other types of private construction, while the volume of publicly-financed 'work has been smaller. 90 ~ 80 The Board's index of industrial production, which makes allowance for changeS in the number of working days and for usual seasonal variations, was 116 per cent of the 1923-1925 average in February as compared 'with 114 in January and .an average of 115 in the last quarter of 1936. At steel mills activity continued to Increase in February and the first three weeks of March and, although the growth was somewhat less than seasonal, output currently is about the peak level reac~ed in the summer of 1929. Automobile production, while fluctuating considerably WIth strikes at important plants, has been larger for the year to date than in the corresponding period last year. Output of plate glass in February showed a sharp rise from the low level of the two preceding months when strikes curtailed prod~c tion. At textile mills and shoe factol'ies activity continued at a high level, whIle output at meat-packing establishments declined somewhat further. Mineral production increased, reflecting chiefly greater output of coal and a further rise in crude petroleum production. 1931 80 .. V ~ J 1932 1933 70 60 193~ 1934 19a6 1937 Factory employment and payrolls increased from the middle of January to ·the middle of February by more than the usual seasonal amount. The number employed in the machinery industries increased .c onsiderably and there were smaller increases at automobile and plate glass factories. In the non-durable goods industries as a group there was a seasonal rise in employment. '0 DISTRIBUTION Index compiled by the United States Bureau of Labor Statistics. 1926 100. By months. 1929 to 1981; by weeks. 1982 to date. Latest figure is for week ending March 20. 1987. = MEMBER BANK RESERVE BALANOES Department store sales increased from January to February and the Board'6S seasonally adjusted index advanced from 93 to 95 per cent of the 1923-19? average. Sales at variety stores also increased more than seasonally, while ma l !order sales, largely in rural areas, showed less expansion than is usual at thiS time of year. Total freight-car loadings increased in February and the first half of March, owing in part to seasonal influences. COMMODITY PRICES The general level of wholesale commodity prices advanced from the middle .of February to the third week of March, reflecting principally further substantlal increases in the prices of industrial materials. Prices of iron and steel, nonferroUS metals, lumber, cotton, rubber, and hides advanced considerably and there were also increases in the prices of cotton goods, paper, and furniture. Wheat prices have advanced in recent weeks following a decline in the latter part of FebruarY, BANK CREDIT Wednesday figures of total member bank reserve balances at F ederal Reserve banks. with estimates of required reserves. January 6. 1932. to March 24. 1937. MONEY RATES IN NEW YORI( ""til' 7 'ute rH1 I 7 I, = i:.':~~'&M .. -AcupIMKWH't. lJ. r-,. '\ \.~ ,t~ 1931 1932. Holdings of United States Government obligations at reporting member bankS in leading cities declined by $280,000,000 in the four weeks ending March 17, a part of the decline reflecting large maturities of Treasury bills. Commercial loan s increased further at reporting banks and on March 17 were above last year's high level reached on December 30. Loans to brokers and dealers in securities increased sharply. ~'I I~ \I~\0," On March 1, when the first half of the recent increase in reserve requirements went into effect, excess reserves of member banks declined from $2,100,000,000 t o about $1,300,000,000. In the next three weeks, which included the March tax coi lection period, excess reserves showed moderate fluctuations around the new level. In connection with the increase in reserve l·equirements there were some withdrawals of bankers' balances from city banks but practically no borrowing bY member banks from the Reserve banks. 1934 -_. ... - 19M --_ ....... 1936 MONEY RATES ".J 1937 Minimum rate on rediscounts for and advances to member banks by Federal Reserve Bank and weekly prevai lin g rates on prime comn:ercial paper. 4 to 6 months. and pl"ime bankers' acceptances. 90 days. For weeks ending January 3. 1981. to March 27. 1987. Since the beginning of March the rate on 90-day bankers' acceptances advanced from 5/16 of 1 per cent to 9/16 of 1 per cent, and commercial paper rose from a flat %. per cent to a range of between %. and 1 per cent. Bond yields, which until recently had been near the extreme low point reached last December, advanced by between 1,4, and lh per cent and on March 24 'were at about the levels prevailing early in 1936.
@FedFRASER