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Monthly Business Review
OF

THE

Volume 24" No. 2

FEDERAL

RESERVE
Dallas, Texas, April 11 1939

BANK

OF

DALLAS

This COpy is r eleased for pub·
Jicution in morning paper s--

M

h 30

ard '

DISTRICT SUMMARY
counter-to-seasonal increases over that in January. The
Construction activity in the Eleventh District showed a dollar value of inventories on hand February 28 at reportfurther counter-to-seasonal decline in February, but the ing firms was about the same as that at the close of January,
value of contracts awarded during the month was nearly but 7 per cent smaller than a year ago. The ratio of collecdouble. that in the corresponding month of 1938 and the tions during February to accounts outstanding at the belargest for that month of any year since 1931. The daily ginning of the month closely approximated that a month
average production of crude petroleum increased about 2 earlier and a year ago.
per cent from January to February and exceeded the averThe number of commercial failures in the Eleventh Disage in February last year by 6 per cent. Drilling operations trict showed little change from January to February, but
were accelerated during the four weeks ended February liabilities of defaulting firms decreased sharply from the
25, with well completions during the period moderately comparatively high level recorded ill fhe preceding month.
larger than a year ago. Daily average sales of department The number of defaults and the amount of liabilities, howstores increased less than seasonally in February, and were ever, were considerably higher than in February, 1938.
3 per cent smaller than in FebruarY' last year. The business According to Dun and Bradstreet, there were 34 insolvenof independent retail firms and the distribution of merchan- cies during the month having liabilities totaling $333,000.
dise through wholesale channels showed slight gains as
AGRICULTURE
?ompared with February, 1938. The loans of weekly reportThe growth of winter crops In the Eleventh District was
Ing member banks rose during the four weeks ended March affected adversely by unfavorable weather conditions during
15 to the level obtaining at the end of 1938, but investments February, but little damage occurred except in some areas
showed a further decline.
of the western portion of the district where sand storms
BUSINESS
were severe. High winds are depleting sm-face moisture,
The business of department stores in principal cities of and additional rains are needed in many sections to prevent
the Eleventh District was 2.5 per cent smaller in February soil shifting. Subsoil moisture is still deficient in north and
than in either the preceding month or the corresponding west-central Texas and in portions of south Texas. Farmers
month last year. The decline from January to February is made rapid progress with plowing operations during Februaccounted for, however, by the fact that the latter month ary preparatory to spring planting. Seeding of corn and
had one less business day than January. On a: daily average cotton has begun in south Texas.
basis sales during February were 2 per cent larger than in
The progress of small grain crops was retarded during
the initial month of 1939. Although the dollar volume of February by cold weather and high winds. Prospects are
department store sales during the first two months of 1939 still favorable, however, for a good wheat yield in New
averaged 2 per cent smaller lilian a year earlier, it should Mexico and northwest Texas, but in some other wheat growbe recalled that the dollar volume of businesS' during Janu- ing areas the continued moisture deficiency has been una!'Y and February, 1938, was the largest for that period favorable to plant growth with the result that the outlook
SInce 1929. Preliminary reports from a smaller number of for production is still uncertain.
fin ns indicate that daily average sales during the first half
Commercial truck crops in the non-irrigated sections of
of March were maintained at a level about 2 per cent under
south Texas did not show the expected improvement followthose in the same period last year.
ing the January rains, due largely to adverse weather conIn anticipation of the customary spring demand for mer- ditions prevailing during February. On the other hand,
?handise, merchants increased their inventories sharply duro planting of spring vegetable crops made rapid progress,
lng February, and at the close! of the month they were 2 per and the condition of these crops early in March was reported
cent greater 1ihan a year earlier.
as favorable.
In relation to accounts outstanding at the beginning of
The condition of ranges in the Eleventh District showed
~he month, collections during February on both open and little change during February, whereas, an improvement
Installment accounts were seasonally smaller than a month
LIVESTOCK ON FARMS
JANUARY I Of EACH YEAR
earlier, and the rate of payments on regular accounts was
ELEVENTH fEDERAL RESERVE DISTRICT
down about 2 per cent from that a year earlier.
NUM~BE~R:!:M'.!.':ILL!:!!IO~N_,...--:'~~+-=::;="::~~=~':'_r-~!!!E!}:.'!'.!.':~'~~
'0
. The aggregate demand for merchandise at wholesale firms
ln eight lines of trade in this district was well sustained
~uring February. Sales were only 1 per cent smaller than
l~ the preceding month, and they continued fraction~lly
Illgher ~han in the corresponding month a year earher.
Dealers in automobile supplies, dry goods, and tobacco and .20 ~£#~li*~~~~~~~~~~~~~~-H 20
tobacco products reported gains over both comparative
rnonths, and although the distribution of hardware was 7
pel' cent smaller than in January, it exceeded that in Feb- 10
ruary, 1938, by 10 per cent. Sales of drugs; electrical goods,
groceries, and machinery and equipment continued smaller
than in the corresponding month of 1938, but the business
of grocery and machinery and equipment firms showed
,''''

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

MONTHLY BUSINESS REVIEW

2

ordinarily occurs in that month: Growth of range vegetation
was retarded by below normal temperatures, with the result that spring feeds will be somewhat later than usual.
Although surface moisture is ample over most sections of
the district to start spring grass, it is being depleted by
the dry winds and additional moisture will be needed to
insure spring grazing. Cattle have been maintained in good
condition by heavy supplemental feeding and are expected
to fatten rapidly when spring grass becomes available. The
Department of Agriculture reports foot restocking of ranges
in Texas is almost general with local trading very active.
It was pointed out, however, that the supply of cattle for
restocking purposes is limited. The condition of sheep and
lambs declined during February and on March 1 was considerably below that a year ago . Early lambs are developing
slowly and losses in some areas have been fairly heavy. Due
to unsatisfactory development of lambs during the winter,
the supply of grass·fat yearling lambs available for market
in April and May is expected to be much smaller than a
year ago.
Cash farm income from the sale of principal farm products and Government benefit payments during January in
the five states attached to the Eleven1ih District was about
one·fourth smaller than in the corresponding month of
1938. The reduction resulted from the sharp decline in
income from the sale of crops, as receipts from the market·
ings of livestock and livestock products and Government
benefit payments were larger than ~ year ago. The de~line
in income from the sale of crops IS accounted for chIefly
by smaller marketingS! of cotton and cottonseed.
The production of wool m Texas, New Mexico and Arizona during 1938 totaled 99,745,000 pounds, which represents an increase of 4 per cent over fhat a\ year earlier. The
expansion was due entirely to a fmther increase in Texas,
where production established a new high fOol' the second
consecutive year. The value of wool produced, however, was
sharply lower than in 1937, reflecting a decline of about
one·third in the average value per pound. Shorn wool pro·
duced in the United States totaled 372,810,000 pounds in
1938, as compared with 366,609,000 pounds in 1937. The
production of mohair in Texas and the United States in·
WHOLESALE AND RETAIL TRADE STATIS1'ICS
, . - - - - Percentage change in:
<Ratio Fob. collect.ions
Net sales
Stooks'
to accounts outstand·
-.r-ing Feb. 1
,. Feb., 1939 from
Jan. 1 to
Feb., 1939 from :,...-----~
Feb.,
.Tan., Feb. 28, 1939, Feb.,
Jan.,
Tnstall·
Retail trade:
1038
1939
from 1938
1938
1939
Regular
mont
Department st·ores:
38.7
Totalllth Dist .. - 2.5 - 2.5
- 1.6
+ 2.4 + 12.2
14.3
Dallas .......... - 6.3 + 1.8
- 3.3
+ 5.0 +11.5
40 .0
16 .2
Fort Worth ...... - 3.4 + 4.2
- 1.2
+ 2.6 +17.2
31.5
10 .0
Houston ......... + 2.8 - 4.7
+ 1.8
+ 4 .1 +17.5
38.8
San Antonio ..... + 2.1 - 9.0
- 2.7
- 2.4 + 4.6
42.2
ii:i
Other cities ..... . - 2.0 - 7.2
-.4
- 1.2 +14.3
14 .3
38.7
Independent storest :
Amona ......... + .6 - 7.0
Oklahoma . ...... + .1 - 8.8
New Melioo ... . . + 4.2 - 7.3
TOJ<as ... .. ...... No obg. - 3 .1
Wholesale trnde:t
Macbinery, eqp't &
su pplies (OJ<oept
electrioal) ....... - 17.0 +16.5
-20.4
65.0
Dry goods ........ + 4.5 + 1.5
+ 0.1
':':'i4:3 - 2.7 30.8
Groceries ......... - 1.1 + 1.1
- 1.8
- 8.0 - 3.0
82.4
Drugs ...... .. . . .. - 2.5 - 4.6
- 2.0
- 4.4 .5
70.3
HardwlIfc .. . • .... +10.0 - 7.4
+16.3
+ 4.3 + 4.2 68.7
Electriealsupplies. - 5.4 - 1.0
- 4.5
Tobaoeo & prod's . . + 2.0 + 6.0
+ 5.0
85.7
+14.7
:"::0'.2 + 0.3
Automotivesuppl's + 10.0 + 7.3
'Stooks at olose of month. tCompiled by United States Departmont of Commorce.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1923.25 average-l00)
With seasonal adjustment
Witbout seasonal adjustment
---v
---...
Sales-Feb.
Stooks-Feb.
Sales-Feb.
Stooks-Fob.
1930
1038
1939
1938
1030
1038
1039
1038
60.0
Total E1cventb Dist .. 104 .8 107 .2
64.1
80.1
01.1
63.9
61.5
Dallas .............. 114.3 122.0
70.3
66 .0 100 .6 107.4
67 .5
63.4
Fort Werth .......... 106.4 109 .4
61.0
00.2
88.3
90 .8
59.4
57 .8
Houston ............. 104 .5 104.8
49.2
45 .9
80.1
88.8
45.8
42 .7
88.0
Ban Antonio......... 01.0
52.8
52.8
73.0
76.5
53.3
63.3

,.

creased sligJItly during 1938, aggregating 14,040,000 and
16,762,000 pounds, respectively.
'JIhe annual inventory estimates of livestock on farms
made by the United States Department of Agriculture show
that in states attached to the Eleventh District the numbers
of cattle, horses and mules on farms decreased further
dming 1938, while the numbers of hogs, sheep and goats
increased. The decrease in the number of cattle on farms
occurred despite the large calf crop in 1938 due to· the fact
that shipments during the year from Texas, Arizona and
New Mexico were of near record size. The number of milk
cows on farms, however, was 1.4. per cent higher on January
1, 1939, than a year earlier. Although marketings of sheep
and lambs in this distri'c t were in record volume dill'ing
1938, they were smaller than the estimated production of
lambs and in consequence the number of sheep and lambs
on farms was about 4, per cent higher on January 1, 1939,
than at ~he beginnin g of 1938. The supply of hogs on farms
increased 17 per cent during the year, reflecting decreased
marketings and an expansion in the production of pigs.
FINANCE
Member bank borrowings from the Federal Reserve Bank
of Dallas increased somewhat between February 15 and
March 15, but the total volume of borrowings remained
small. The reserve baiances of member banks, which had
showed relatively little fluctuation during February, rose
substantially in the first two weeks of March, reaching an
all·time high level at $198,680,000 on March 14,. On the
following day, reserves declined to $183,096,000 due chiefly
to payments by banks in settlement for purchases of Treasury
bills. Total reserves on March 15, however, were approxi.
NUMBER AND VALUE OF LIVESTOCK ON FARMS AS OF
JANUARY 1, 1038 AND 1989-(000'. omitted)
,.----'rexas
v - - - Eloventh Distriett ______
No. head
Totnl value
No. head
Total value
,...--------y-y--·------v,...-------1030
1938
1030
1038
1030
1038
1039
1038
Horses and col ts ..... .
670
1.384
1,442 $ 76.407$ 89,7 18
707$ 36,871S 44,904
Mules and mule colts.
687
708 59.212 66,664
1.002
1,125 98,187 108,603
All eattle and oalves .. 6,055
7.245 m,348 174,705 12,252 12,053 333,535 317,523
Milk cows' ...... . .. . 1,458 1.444 52,488 40,006
2,615
2,578 00,181 90,685
Hogs. inoluding pigs .. 1,820 1.542 14,310 12,400
3,707
3,240 28,740 25,330
All sheep and lambs .. 0,856
9,320 43,046 45,518 13.650 13,128 62,171 65,241
Goats and kids ...... . 3,142
3,050
8,708
8,540 §3,142 §3,050 §8,708 §8,540
Total ....... . . 23,130 22,572 $342,404 8852,821 85,317 34,647 $607,847 $615,045
'Cows and heifers two years old and over kept for milk; number and value inoluded in
"all oattle and calves." tEleventh District figures represent combined totals for the five states
wholly or partially attached to the Eleventh Distriot. §Texas only, estimates for other states
not available.
.
SOURCE: United States Department of Agrioulture.
CASH FARM INCOME FROM SALE OF PRINCIPAL FARM PRODUCTS AND
GOVERNMEN'r BENEFIT PAYMENTS
(I n thousands of dollars)
,.
January, 1030--y---Total reoeipts-----,
r - - Reoeipts from: -~ Government
Janunry
,TanuRry
Crops
Livestook' paymenta
1080
1038
Ariz.o~a . . ... , ... . . ..... .
1,700
1,955
250
4,004
5,814
I.oU\slnna .. .. ... ... ..... .
1,806
2,502
240
4,557
8,480
New Mexioo . . . . ........ .
598
1,822
70
2,400
3,426
Oklahoma .............. .
3,563
5,890
507
10,050
8,840
Telas .................. .
7,633
10,233
2,847
20,713
20,642
Tetal . . . . . . . . .. . . .
15,300
22,411
4,013
41,823
'Inoludes receipts from the sale of livesteok and Iivestook produots.
SOURCE: United States Department of Agrioulture.
FORT WORTH LIVESTOCK RECEIPTS
(Number)
February
Fobrunry Change over
1030
1038
year
Cattle .... ... ........... .
33,584
38,311
+ 273
Calves ................. .
20,705
20,815
20
30,667
25,767
+ 4,900
... ·. : : : : : : : : : : : : : : : :
32.614
35,733
- 3,110

rho~e~

J auuary
1030
48,488
28,363
31,035
46,220

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
February
February
1030
1938
Beef steors .. . ...... . ........ . . . .. .. . . ..... .. .... . · 110 .25
$7 .75
Heifers and yonrlings .. . .. .. .. . .... . ... '" ....... .
11 .00
8. 75
5 .40
6.50
7.25
0 .50
8.25
9 .00
8.10
8 .60
8 .60
7.25

~t~) • • •·:.: • .•·• ·• •
••

50,211

Change ovor
month
- 14,004
- 7,568
368
- 13,615

January
1039
$10 .40
10 .25
0.75
10.00
9.00
7.60
8 .26

MONTHLY BUSINESS REVIEW

malely $4,600,000 higher than a month earlier. During the
first haH of March reserve balances of member banks averaged about $7,100,000 higher than in February and average
e~cess reserves were larger than in any semi-monthly period
~Ince the spring of 1937. Federal Reserve notes of this bank
In actual circulation totaled $76,200,000 on MaTch 15, which
is about $1,000,000 lower than a month earlier and $4,,000,000 smaller than a year ago.
The loans of weekly reporting member banks in the
~leventh District, after having declined less than seasonally
In January, rose steadily dming February and remained at
the higher level during the first haH of March. The loans of
these banks on March 15 were slightly above those at the
close of 1938, and exceeded those on March 16, 1938, by
about $14,,4.00,000. During the first two and one-half months
of 1938, the loans of reporting banks declined by about
$20,600,000. The investments of these banks showed a net
decline of $2,988,000 in the four-week period ending March
15, bringing the decrease in holdings since December 21,
~938, to $33,916,000. In the latest four-week period holdIngs of obligations! guaranteed by the United States Government were increased $2,505,000 but holdings of direct obligations of vhe United States Government were decreased
$1,44.0,000 and holdings of other securities were reduced
$4,,053,000. Total loans and investments showed little change
between February 15 and March 15 but on the latter date
they were $16,313,000 higher than a year earlier. The deposits of reporting banks showed a further net expansion
of $1,64.3,000 between February 15 and March 15 as the
seasonal withdrawals of interbank deposits were more than
offset by increases in other classes of deposits.
Debits to individual accounts at banks in principal cities
of the Eleventh District showed a seasonal decline of 12 per
cent from January to February, but they were in approxiluately the same volumd as in February last year. The latter
comparison contrasts with a gain of 8 pel' cent for reporting
banks in the Unite<L States, but 'i t should be recalled that in
February last year debits in the United States were 25 per
cent lower than in that month of 1937; whereas, the decline
Was only 3 per cent in this district.
INDUSTRY
Construction activity in the Eleventh District showed a
further counter-to-seasonal recession in February, but the
value of awards was nearly double that in the corresponding
l1:onth of 1938. The downward trend in construction activity
Sli1ce the first of the year has been due in substantial part
to a sharp reduction in non-residential building, although
iwal'ds for other classes of construction . in ~ebruary we~e
OWer than the large December totals. ResIdenual and publIc
w
l?rks consu'uction, after having increased in January, dec Ined about 17 and 25 per cent, respectively, in February.
~he value of conh'acts awarded for public utility construchon increased about 45 per cent from January to' February,
but the total for the latter month was only about one-half
. that in December. Since the first of the year, both the number
and amount of awards for one-family residences have incthreased. Privately-financed construction of all types during
e first two months of the current year, although much
greater in volume than in that period of 1938, has constituted
only 50 per cent of the total, as compared with about 63
pel' cent during the corresponding period last year.
~fter having shown substantial increases in the two precedmg months, the valuation of building permits issued at
~fteen cities i'n this district declined 12 per cent in February.
Fhe month's total, however, was 14, per cent higher than in
'ebruary last year, and the aggregate for the first two
Inonths of 1939 exceeded that for the corresponding period

II

of any ovher year since 1928.
The daily average production of crude petroleum in the
Eleventh Djstrict and in the United States rose by about
2 per cent from January to February, reflecting in part the
increase in allowables in Texas occasioned by the completion of new wells. In comparison with February a year ago
petroleum output in the country as a whole was at about
CONDITION OF THE FEDERAL RMIJ.RVE BANK
(In thousands of dollars)
Maroh 15. March 15,
1930
1938
Tctal oasb reserves ...... , . . .. ... . ... . , ..... ,. . .. . 5230,025
$100.281
Disoounts fcr member banks.. .. . . . . . . . . .. .. .. .. . ..
310
313
Industrial advanoes .. ....... . , .. .. . ............ , . .
601
913
Bills bought in the open mnrkct , ............ , . . .• ,.
16
16
United States Government securities .. , .. . .... . . ....
106.410
00.768
Total enrning assets .......... .. , ........... , .... ,
107,355
101.010
Member bank rescrvc dep!lSits. . .. . . ......... .. . . .
183.096
184.150
Federal Reserve notes in actual oiroulation . . . ...... .
76,206
80.100
Commitmcnts to make industrial ad vances. . .. .,.. .
44
268

Fcb.15.
1030
$204,187
176
621
16
106.410
107,232
178.503
77.208
44
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
Morch 15, March 16,
Feb. 15.
"~

1 ~8

1~0

Total loans and investments .... . . . . . . ,..... .. . . . . . 5506.151
$480.838
5506.428
Total loans ...... ... .......... . , . . . . .. . . . . . . .. . . .
246.644
232.230
243.033
Commercial. industrial and agricultural loans. .....
161.778
148.847
160,243
Open markct paper .... . ....... , .... . . ...... , . ..
021
1.848
833
Loans to brokors ond deniers in sccnrities. .. .. . . . . .
3.313
2.265
2.043
Other loons for purcbosmg or carrying securities.. . .
14.230
14.374
14,462
Real estate loans .... . .............. ,', . .... .. ..
10' ~;34
20.~5 ~
8
19.373
Loans to bonks ... . .... . . , . . ,.......... . ...... ..
224
All otber loans.. .. .. .. .. .. .. .. .. .. . .. . .. .. . .. . .
46.276
44.060
45.855
United States Governmcnt direct obligations ... , ,.,..
159,745
175,205
161.185
Obligations fully guaraatoed by Uuited Stotes Oovt..
47.594
31,393
45.080
Other seourities. . . .. .... .. . .. . .. .. .. .. .. .. .. .. . ..
52,168
51.001
56.221
Reserves with Fedoral Reserve Bank .. .............
111.054
113.221
107.038
Balances with domestic banks .... .. , .. . .. . ,. . . . . .. . ·248.858
104.351
240,500
Demand deposits-adjusted·. . . .... ...... . • . ......
438,788
403.589
430.472
Timo dCjloslts .. .... .......... . .. . .... . .. ,. . . . . .. .
136.469
130.550
134.400
United States Government deposits . ........ • ... ,. . .
34,385
24.360
38,804
Interbank deposits...... .. . .. .. .. .. .. .. .. .. . .. .. ..
208,036
1 8~~~~!
217.170
Borrowings from Fede..l Reserve Bank. . . . . . . . . . .
None
N
Nonc
·Includes all dcmand deposits other than interbank and United States Governmcnt, less
oash itCIllB reported os on hand or in process of collootion.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Averagc of daily figures- in tbousands of doUars)
Combined total
Reserve city banks
Country banks
---y---o-----y-------,.

Gross
Gross
Gross
dcmand
Time
demand
Time
demand
Fcbruary, 1937 . ...... . .. $1.070.858 $100.708 $607,432 5100.355 5472.426
Fcbruary, 1038, ......... 1,113,910
216,344
606.222
110,587
507.607
October, 1038 ..... . .... 1.157.001
224.045
655.665
124.155
502.326
November. 1038 . .... .. .. 1.188.460
222.920
667.021
122.080
521,448
Deocmber. 1038 ...... .. .. 1,180,670
223.336
665,072
123,655
524.508
January. 1039 ... , . .. . .. 1.102.054
223,681
672.652
123.805
519,402
February, 1030 ........ .. 1.103,160
225.828
674.077
124.075
518.183
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
February
February Potg.ohange J anuary
1039
1038
over year
1039
$ 7,057
- 8.0
S 8.571
Abilono ... ........... . . . S 7.320
31,487
81.677
28.736
+10.2
Austin ....... , ....... . . .
22.565
28.389
- 3.8
23.106
Beaumont. , ......... ... .
3.477
3,210
2.848
+ 12 .7
Corsicana ..... .. ....... .
246.274
215,529
210.181
- 1.7
DaUos . ... ... " ....... ..
30,220
28.681
26,806
+ 7.0
El Poso ... "." ....... ..
67.544
68, 107
-.8
83.877
Fcrt Worth ..... , ... . .. ,.
22,876
24.444
- 6.4
28.403
Galveston ............. ..
230,312
100,348
103.004
+ 3 .3
Houston .... . . , ... .. ... .
0.266
8.060
8.518
- 5.4
Port Arthur .. . .. . ...... .
4.164
3.391
3.208
+ 5.7
Roswell. ......... " ... ..
60.474
57,525
+ 5,1
67.880
San Antonio ........... ..
30.285
43.660
- 10 .0
45.205
Shreveport ............. .
7,160
6.245
6.142
+ 1.7
Texorkana· ............ ..
11,005
11,386
10.051
+ 4.0
Tucson ................. .
12,143
0,680
11.405
- 15 ,1
',l'yler . .. " ............ ..
12,702
+ 1. 0
14.177
12.835
Waco . . .. , ... . . ........ .
13,108
15.630
-15,6
14,140
Wichita Falls .........•..

Timo
$00,443
96.757
90.800
90.040
00.681
09.876
100,353

~~t~~:~:t'l."
-14.6
+ .6
- 2.3
- 7.7
-12.5
- 5 .1
-10.5
-19.5
- 13.4
-13.0
- 18 .6
-10.0
-13.1
-12.8
- 4.4
- 20 .3
- 0.5
- 6.7

Tctol. ...... ".. $763,304
5764.181
-.1
5871,776
-12.4
·Includes the figures of two banks in Texnrkana, Arkansos, located in the Eighth District.
SAVINGS DEPOSITS
February 28. 1930

Percentago chango in
, savings dcpcsits from
Numbcr of Amount of r - savings
savinp
Feb. 28,
Jan. 31,
dcpositors
depoSIts
1038
1039
0.907 $ 3.926.877 + 5.5
.9
89.400
27.040,768 + 3 .8
.7
16.707
8,136.748 - 2.2
.1
38.040
13,764.004 + 5 .2
.5
18,534
12.029.019 + 6.0
.4
74.025
20.607.363 + 4 .0
.6
6.302
2,908.300 + 12.1
1.6
24.430
18.064,423 + 0.9
.4
24.041
11,508.960 + 3.0
.4
8,34 1
4.657,183 - 4.4
.5
7.470
8.848.881 + 13 .2
.5
60.605
20.576,017 + 3 .2
.5

r--

Number of
rejlOrting
banks

a

Benumont ......... .... . .
DaUos . .... . .... " ..... .
EI Poso .... . ......... , ..
Fort Worth ..... . ....... .
Galveston . ....... . ..... .
Hcuston ............ . . .. .
Port Arthur .. . ... . ..... .
San Antonio ....... " ... .
Shreveport ..... .. ...... .
Waco ... .......... . .... .
Wichita Falls ..... , ..... .
All other ...... , .. , ..... .

8
2
3
4
10
2
5
3
3
3
69

ToW .•... . .. .•.

115

370,638

$165.070,428

+ 4.4

+
+
+
+
+
+
+
+
+
+
+

.5

MONTHLY BUSINESS REVIEW
4.
the same level, but in this district it was 6 per cent higher. cline in February. Expo-rts from the United States totaled
Stocks of crude oil in the United States showed a slight only 263,922 bales, as against 289,514 bales in January,
increase in the five weeks ended March 4" but the total on and 398,744 bales in February, 1938. Shipments of cotton
that date was 10 per cent smaller than a year ago. Refinery to foreign countries during the first seven months of the
operations, as measured by crude oil runs to stills, declined current season aggregated 2,456,207 bales, as compared with
somewhat from January to February but were at about the 4.,230,991 bales in the corresponding period of the preceding
season and a ten-year average for that period of 5,029,399
same level as a year ago.
Stocks of gasoline at the close of February were approxi- bales.
mately 8 per cent greater than a month earlier, but still 7
Altho-ugh exports of coLton through the po-rts of Houston
per cent less than a year ago. On the other hand, inventories and Galveston thus far this season have been comparatively
of gas and fuel oil continued seasonally downward, and at light, Vhe decline as compared with the corresponding period
the close of the month were only 8 per cent higher than a last season has been much smaller than that for the United
year earlier.
States due chiefly to increased shipments to Japan, a major
Drilling operations in both the Eleventh District and the portion of which passes through Texas POltS. During the
United States increased sharply in February and were higher first seven months of the current season exports of cotto-n
than in the corresponding month last year. In this district from Houston and Galveston were 23 per cent less than in
completions averaged 39.1 wells daily as compared with an that peri'od a year earlier; whereas, the decline for rhe
average of 26.6 wells in the preceding five weeks, and 36.9 United States was 4,2 per cent.
wells in the corresponding period of 1938. Due to the low
Operations at POltland cement Inills in Texas during the
rate of activity in January, well completions during the first first two months of 1939 were at record' levels for that petwo months of 1939 were 11 per cent fewer than in the corre- riod. However, production exceeded shipments by 6 per
sponding period of 1938.
cent, with the result that stocks of cement have risen con·
The rate of cotton mill activity in the United States was siderably, the total at the end of February being 28 per cent
well sustained during February. On a daily average basis greater than a year earlier.
the consumption of cotton showed a small increase over that
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
in the preceding month, and vhe total was almost one-third
r -- - Te x a s - - - v - - - Unitod States~
August 1 to February 28
August I to February 28
greater than in February last year. According to trade reThis SClUlon
Last season
This season
Last season
mills
ports, there was a decline in mill sales of cotton goods Cottonscod received at ..... ..
(tons) ..............
3.895.112
6.070.969
969.499
1.505.898
3.446.107
962.345
1.364.840
4.957.773
during the first three weeks of February accompanied by a Cottonseed orushed (tons) .... .
Cottonseed on hand Feb. 28
weakening of prices on some constructions, but in the sub(tons). . ... ........... " .. .
253.930
781.615
1.100.77 1
180.227
sequent three weeks sales expanded consi'd erabl y due to Produotion of products:
Crude oil (pounds) ........ . 281.383.921
309.587.374 1.070.330.900 1.512.448.711
Cake aud monl (tons) . ..... .
Government purchases for relief purposes and a heavy de448.260
630.008
1.548.333
2.207.320
Hulls (tons) ........... . .. .
255.704
357.073
894.415
1.260.126
mand from trade sources. Prices strengthened somewhat
Linters (running bales) . . ... .
210.804
281.018
848.202
1.130.722
following the improvement in demand for cotton goods. Stooks on hand February 28:
Crude oil (pounds) ... .. ... . 42.815.515
20.207.147
121.278.013
203.900.988
Mill stocks of raw cotton were again reduced by more than
Cake and meal (tons) . . .... .
02.789
77.423
245.22 1
251.789
Hulls (tons) .............. .
67.878
50.248
141.407
140.646
the usual seasonal amount, and at the close of February
Linters (running bales) ..... .
152.912
120.819
562.133
515.410
they were 14 per cent less than a year ago .
SOURCE: Bureau of Census.
Foreign takings of American cotton showed a fUr1!her deCONSUMPTION. ST'OCKS AND EXPORTS OF COTTON
VALUE30F CONSTRUCTION CONTRACTS A WARDED
(In thousands of dollars)
February
February
January January 1 to February 28
1030
1038
1930
1930
1038
Eleventb Distriot-total... S 15.022
$ 7.030
$ 18.221
$ 33.243
$ 18.485
Residential. . . . . . . .. . . .
5.167
3.618
6.227
11.304
6.562
All other.. ...... .. ....
9.855
4.321
11.094
21.849
11.923
United States·-totul. . ...
220.197
118,945
251.673
471.870
311.176
Residontial. . . . . . . . . . . .
79.020
40.023
80.163
159.183
76.230
All other..............
141.177
78.922
171.510
312,687
234.946
°a7 states enst of the Rooky Mountains.
SOURCE: F. W. Dodge Corporatioa.
BUILDING PERMITS
Percentage ohange
Percentago
valuation from
February. 1939
Jan.lto Feb. 28.1939 ohango

Abilene . . . .... .
Amarillo ...... . .
Austin ....... . .
Bonumont ..... .
Corpus Christi ..
Dallas· ...... ..
EI Paso ...... ..
Fort Worth .. .. .
Galveston ..... .
Houston ....... .
Port Arthur .. . .
San Antonio .. . .
Shreveport .... .
Waco . ........ .
Wiohita FaUs .. .

No. Valuation vrFe-b--l0-3-8-J-an-•-1-93....,0~ Nfl.
.•
.
Valuation
12 $ 11.900 - 32.4 - 85.0
45 $
92.120
58
115.478
64.0 - 32.8
170
287.418
247
608.022 3.7 - 17.1
454 1.541.563
118
102.662 + 40.4
11.8
278
194.469
124
201.625 - 47.6 - 79.4
230 1,180.322
536 1.272.084
56.7 - 13.7
1,136 2.748.598
140.725 + 18 .5 - 41.5
71
155
381.424
187 1.139.205 +255.7 +243.0
368 1.471.290
129
112.609 - 53.7 - 16.4
263
247.381
466 1.814.155 + 12.0 - 11.1
800 3.854.530
108
47.159 - 89.5 - 65 .9
211
185.484
224
328.050 3.9 - 47.6
426
957.144
150
784.412
.8 +142.5
274 1.107.830
61
97.253
.3 - 67 .8
110
a99.360
20
61.040 + 67.9
4.5
54
110.435

+

+

+

+

+

Total .... 2.585 $6.029.169 + 11 .0 °lnoludes Highland Park and University Park.

11.6

-----5.142 $14.768.386

f~~~ai~~8

+105.6
+127.2
+ 31. 4
+ 29. S
+ 90.5
+ 54.6
+ 126 .0
+ 41.4
+ 32.2
38.0
- 65.2
+ 63.2
+ 24 .7
+190.1
+ 61.0

+

+ 41.6

PRODUCTION. SIDPMENTS AND STOCKS OF PORTLAND CEMEN'r AT
TEXAS MILL8-(In thousands of harrels)
Percentnge change over January 1
r:--:------...." through
Percentage
February
Fobruary
January
Feh. 28. ohange over
1939
1938
1039
1939
year
570
Produotion ....... . .... ..
+28.4
- 16 .3
1.243
+59.8
646
Shipments ...... . ....... .
+ 2 .4
-13.2
1.173
+10.6
851
Stooks at end of month .. .
+28.2
+ 3.0

Fobruary
1939
Consumption at:
Toxna mills ............
9.785
United States mills ... . .
562.203
U.S. stocks-cnd of month :
In consuming estab·mts . 1.558.818
Publio stg. & comprcsses. 14.068.684
EWnrts from U. S. to:
nited Kingdom ..... . .
33.805
France .... . .. ... ......
10.348
Italy ... . ... . . ... . . ....
24.302
Germany ..... . ........
25.872
Other Europo . . . .. .....
80.970
Japan ..... . . . .... . ... .
65.063
All other countries .... ..
22.563
Total exports......

263.922

(Bales)
February
1938

.Jnnuary
1939

8.064
426.866

10.378
591.901

1.808.467
11.474.802

1.626.503
14.782.233

07.610
24.753
33.041
23.585
61.854
107.878
49.473
308.744

Au~ust 1 to February 28
Th'8sClUIon L"st seasoll

71.540
3.954.101

06.805
3.504.538

41.465
20.741
22.030
31.399
59.646
70.954
43.273

310.263
304.132
197.542
226.007
567.280
594.314
247.660

1.292.730
630.500
366.834
568.903
634 .730
336.383
391.836

289.514

2.456.207

4.230.991

RECEIPTS. EXPORTS. AND STOCKS OF COTTON AT THE PORTS OF
HOUSTON AND GALVEBTON-(Balos)
February
February
January
August 1 to February 28
1039
1038
1039
This season Last "cason
t,~r~
55.564
213.694
104.540
1.868.801
3.466.818
Stooks. end of month.....
208.233
270.176
237.303
1.677.207
2.180.120
1.397.308
1.778.778
1.557.085

. :::: ::: ::::: ::::

CRUDE OlI. PRODUCTION
(Barrols)
February. 1930
Increase or decrease in dailY .
, - - - - - - - - - - - . , average production from
Total
Daily avg. , . . - - - - - production
produotion
Feb .• 1938
Jan .• 10aO
~~\h~~=...... . ..........
4.053.250
144.759
+17.257
+ 327
E tT
..................
6.778.750
242.098
+37.023
+ 3.856
Boas exas.................. 13.371.250
477.545
-37.619
+ 5.006
T utb exas ... . .... . ........
7.038.900
251.389
+30.862
+14.100
6.124.500
218.732
+34.821
~
exas oastal................

6

N

. .... ....
1bMTo!al Texas...............
~~o.......
ulBlana........ ....

Ne
or

37.366.650
2.853.350
1.083.150

1.384.523
101.905
70.827

+91.344
- 3.508
- 8.102

+27.019
+ 3.207
718

Total Distriot.. ..... ... 42.203.150
1.507.255
SOURCE: T he Oil Wukl" Houslon, Teus.

+79.644

+20.608

--- - - -

MONTHLY BUSINESS REVIEW
APRIL 1, 1939

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by tho Board of Governors of the Federal Reserve System)

INDUSTRIAL PRODUCTION
P<II<M

140
I 30

120

11'0
10()

.....,.,I

90

80 L\
70

.r

I 20

/~

I 10

\
\

V

/

I

V

I00

90
80

'"

70

so

60
1934

1935

1936

t9~

1937

1939

Index of physical volume of production, adjusted
for season,,1 varilltion, 1923-1925 average
100.
By months, January, 1984 to February, 1989.

=

FACTORY EMPLOYMENT
120
""""'

110
10()

90

so

./ ./

~

110

J~

100

90

V

80

70

70

60

so
1934

1935

1936

1937

1938

=

•

PRODUCTION
Volume of industrial production was at about the same rate in February as in the two
previous months, although usually there is an increase, and tlle Board's seasonally adjusted
index declined further to 98 per cent of the 1923·1925 average. In tlle steel industry activity
did not show the usual seasonal advance. Pig iron production increased, but new orders for
steel were in limited volume and ingot production remained at about 54 per cent of capacity
tllroughout the month. There was some decline in automobile assemblies, following a period
of considerable increase. Output of lumber and plate glass continued to decrease in February,
while cement production, which had been curtailed in January, increased considerably. In
the first three weeks of March steel production increased to about 56 per cent of capacity
and automobile output was also in somewhat larger volume.
Textile production in February was at about the same rate as in January. At cotton and
woolen mills activity increased somewhat but a~ silk mills there was a marked decline. Output of shoes and tobacco products continued at high levels. In the meat-packing industry
activity declined further and there was also a decreaSe) in activity at sugar refineries.
Bituminous coal production was maintained in February, and crude petroleum output
likewise continued in substan tial volume. Anthracite output declined in February, and in
March was reduced further as mine owners and workers agreed on a curtailment program.
Value of construction contracts awarded declined in February, according to F. W. Dodge
Corporation figures, owing principally to a furtller decrease in awards for publicly-financed
work. Contracts for privately-financed residential building increased furilier, while awards
for private non-residential building remained at the low level of other recent months.

1
939

Index of number employed, adjusted for seasonnl
variation, 1928-1925 a ve"age
100. By months,
January, 1984, tl> February, 1939.
CONSTRUCTION CONTRACTS AWARDED

~ON'OFCICl.i..MI

In February industrial activity continued at the January rate, without showing the usual
rise, and retail trade increased less than seasonally. In the first three weeks of March,
however, industrial activity and trade showed seasonal increases. Commodity prices continued
to show little change.

WIllJONlflllCC.,U"l

500

EMPLOYMENT
Factory employment and payrolls increased somewhat less than is usual between the
middle of January and the middle of February. Changes in non-manufacturing lines were
largely of a seasonal nature.
DISTRIBUTION
Depru·tment store sales were in about the same volume in February as in January, altllough
some increase is usual, and sales at variety stores increased less than seasonally, while mailorder sales rose by sliglllly more than the seasonal amount. In the early part of March department store sales increased.
Freight-car loadings declined somewhat from January to February, rellecting for the most
part reduced shipments of grains, forest products and miscellaneous freight.
COMMODITY PRICES

~~~

1934

____L-__- L__
1935

1936

~L-

1937

__-L__

1938

~O

1939

Three-month moving averages of F. W. Dodge
!Jol'porution data for value of contrncts awarded
t~ 87 eastern states, adjusted for seasonal variaIon. Latest figures based on data for January and
February and estimate for March.

BANK CREDIT

MONEY RATES IN NEW YORK CITY

~~---r----'-----r----'-----r--~1-4
3.

~"'~

____+-__-+____ __ ____
~

~

Wholesale commodity prices were generally maintained with little change during February
and th.e first three weeks of March. As is usual at this season prices of livestock and meats
increased while dairy products declined. Silk prices advanced considerably in this period.
In the early pru·t of March current prices of pig iron and of semi-finished and finished steel
were reaffirmed for the second quarter of this year_

~

2

Investments in United States Government obligations by New York City banks increased
considerably iDj February and ilie first half of March. In tlus period member banks reduced
their holdings of Treasury notes and increased their bonds, rellecting in part exchanges of
notes for new bond issues on March 15. Excess reserves of member banks continued somewhat below the high level of $3,600,000,000 reached at the end of January, lIuctuating largely
in accordance with changes in Treasury balances at tlle Federal Reserve banks.
MONEY RATES

1935

weeks ending January 6, 1984 to
March 18, 1989.

Average yields on United St.ates Government securilies declined to new record low levels
{rom February 27 to March 10, following Ihe announcement. by Ihe Treasury tha\. no cash
would be raised in th e March fin ancing. Yields rose sliglllly after t.he middle of March
accompanying renewed tension in Europe. New issues of 91·day Treasury bills continued
to sell on practically a no-yield basis during March. Other open-mal'ket rates continued
unchanged.