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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.