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Monthly Business Review
OF
THE
FEDERAL
RESERVE
BANK
OF
DALLAS
~~==============================~===========
Jolume 25, No.2
Dallas, Texas, April 1, 1940
This
COpy
is
released for pub· M
30
~~==============================================~====================;lic;a;ti;on~in;;a;fro;r~n~o~on~p~ap~e;r&-~;;~ar~.~
DISTRICT SUMMARY
i IFthe Eleventh Distr~ct, industrial activity increased durn~ ebruary and distribution of merchandise at wholesale
a~ retail continued in large volume. Daily average sales
a department stores were 2 per cent greater than in the corl'esp
t
on d'mg- month last year, and the volume of wholesale
rade exceeded that of a year ago by the widest margin for
~}Y month since last September when business was stimb ~te~ by widespread speculative buying. Activity in the
ulldmg industry showed a noticeable increase, reflecting
an expansion in privately-financed construction. The daily
aver~ge production of petroleum, which had been reduced
lonslderably in January, was expanded in February to a
ievel 4, per cent higher than a year ago. Refinery operations
thereased further, and were at a much higher level than in
h e con-esponding month last year. Agricultural conditions
ave shown a noticeable improvement since the January
rreezes.
BUSINESS
1 Tfe large consumer buying power resulting from higher
i~ve s of. employment and payrolls continues to be reflected
.the dIstribution of merchandise at depaltment stores in
~flneipal cities of the Eleventh District. Although daily avert~e sales during February at reporting firms showed less
e d~ the average seasonal expansion over those in the pre1~3~g month, they were 2 per cent greater than in February,
III ,a;td were as large or larger than in any corresponding
atOrth m ten years. This bank's adjusted index of sales stood
e 07 per cent of the 1923-1925 average in February, as
r~lllpared with 113 in the preceding month and 105 in Febth ary last year. Total sales during the first two months of
1 e eUn-ent year exceeded those in the corresponding period
t::t Y?ar by 5 per cent. Stimulated by the early date of Easdur~hlS year, department store trade showed a sharp increase
mg the first two weeks of March.
er Inventories of merchandise at reporting firms were inWi~hsed by about the average seasonal amount in February,
th the result that the adjusted index of stocks on hand at
a e close of February showed virtually no change from that
al'lll~nth earlier. The dollar value of inventories on Febru~ 9 Was 7 per cent higher than a year ago.
ae he rate of collections on both open and instalment
~.unt~ co.ntinued above that a year ago.
nel l~tnbutlOn of merchandise through wholesale trade chanhi in the Eleventh District continued at a comparatively
reg ~vel in February. Aggregate sales for the month at 76
slrhr~mg wholesale firms in eight lines of trade were only
th~s t smaller than in the preceding month and exceeded
Th' e In. the corresponding month of 1939 by 12 per cent.
ila Is gam was, with one exception, the largest for any sim·
in r comparison in recent years, and reports show that
tr~deases were fairly general among the several lines of
Oee e. Th~ most significant increases over a year ago
gr urr~d m the distribution of drugs, electrical supplies,
th~cenes and machinery and equipment. Total sales during
in t~rst tW? months of 1940 were 11 per cent greater than
lug ~ penod last year. The value of inventories at reportrUa W olesale trade firms showed little change during Febry, but continued eonsiderably higher than a year ago.
Collections on outstanding ac'counts were maintained at
about the same rate as in the corresponding month last year_
According to the data compiled by the Bureau of Business
Research of the Uni,:ersity of Texas, employment and payrolls at Texas establIshments, which had declined in January, increased fractionally in February. As compared with
February last year, there were increases of 3.4 per cent in
employment and of 3.9 per cent in payrolls.
According to Dun & Bradstreet, the number and liabilities
of commercial failures in the Eleventh District during February continued at a much lower level than a year ago. In
fact, the indebtedness of the 23 defaulting firms, which
totaled $200,000, was below that for any corresponding
month for which data are available.
AGRICULTURE
Agricultural conditions in the Eleventh District showed a
noticeable improvement during February and the first half
of March. Fairly general rains provided much needed moisture which, together with the milder temperatures, aided in
the recovery of crops that were damaged by the January
fre~zes and .left the soil in generally good condition for
sprmg ploWlng and planting operations. The persistence of
cool nights during February, however, had a retarding effect
on crop growth. Moisture conditions are now more favorable
than at any time in recent months, with surface moisture
in ~ost areas adequate to give spring crops and range vegetatIOn a good start. Subsoil moisture, however, is still deficient over a large portion of the district, particularly in
south Texas and in considerable areas of the central part
of the St~te. Farmel:s have made go.od progress with plowing
~nd seedmg operatIOns. The plantmg of corn has extended
mto central Texas and the seeding of cotton is well advanced
in the southern part of the State.
Small grains are m.aking fair to good progress, but the
condition of the crops for the district as a whole continues
below nor~al. The Texas oat crop has shown an appreciable
recovery smce the January freezes, and it appears that
damage from the low temperatures will be much less than
had been antic.i pated earlier. The winter wheat crop in the
n.orthwest portIOn .o~ the Texas Panhandle is in good condihon, and the condItIOn of the crop elsewhere in the district,
although somewhat spotty, is showing improvement.
LIVESTOCK ON
it
FARMS
JANUARY I OF EACH YEAR
ELEVENTH FEDERAL RESERVE DISTRICT
.0
r
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
Commercial vegetable crops in south Texas were aided
by the February rains, but little tonnage is expected from
those crops damaged severely by the January freezes. Additional moisture is urgently needed in the non·irrigated areas
of this section to replenish subsoil moisture and to sustain
the growth of spring crops. The indicated production of citrus fruit in Texas remains the same as that on February 1,
which was nearly one·fifth smaller than the estimated production prior to the damage sustained in January. Although
citrus trees are recovering rapidly from the freezes, the 194,0
bloom is expected to be about thirty days later than usual.
Livestock ranges in the Eleventh District showed a moderate improvement during February in consequence of the betterment in moisture conditions, but the recovery was insufficient to overcome the damage resulting from the January
freezes since the cool nights retarded the growth of range
feeds. Nevertheless, the outlook for spring ranges is generally good, as weather and moisture conditions in most
areas of the district are now favorable for rapid growth of
grass and weeds. The condition of livestock showed little
change during February, except for a noticeable shrinkage
in cattle along the Gulf Coast caused by unfavorable
weather. According to the Department of Agriculture, cattle
and sheep are in condition to take on flesh rapidly with
an improvement in range feeds. Some additional losses of
young calves have occurred, but prospects are favorable
for large calf and lamb crops.
The inventory of livestock on farms at the beginning of
1940 in the five states wholly or partially included in the
Eleventh District showed an increase of 3 per cent over
that a year earlier and exceeded the 1929-1938 average by
9 per cent. The gain as compared with the preceding year
was due to the increased supply of hogs, sheep and goats,
which more than counterbalanced the smaller supply of other
classes of livestock. Production of hogs, which had shown
a noticeable upward trend in the preceding four years, increased sharply further in 1939, exceeding the number
slaughtered and marketed by a wide margin. In consequence, the number of hogs on farms at the beginning of
WHOLESALE AND RETAIL TRADE STATISTICS
___- - - Percentage changc in:
-Ratio Fcb. collections
Stocks·
to accounts outstandNet .ales
ing February 1
, Feb., 1040 from
Jan. 1 to
Feb., 1940 from ,r-~---':"'Feb.,
Jan., Feb. 29, 1040 Feb.,
Jan.,
InstalRetail trade:
10ao
1040
from 1930
1030
1940
Regular
ment
Department stores:
30 .6
16.4
4.0
7.3 +12 . 6
Total 11th Dist . . + 6.6 + .6
40 .3
16. 6
2.3 +13 .0
Dallas . . ........ + 7.5 + 4.2
6.3
35 .6
11 .6
3. 7
9.6
Fort Worth .... .. + 8. 3 + 7.6
6. 6
37.8
+ 2. 1 +17.4 +21.2 42
Houston .... .. .. . + 1.1 - 6.0
.9
i4:4
6.0
7. 2 + 6.8
San Antonio .. ... +1 1. 0 + 1.3
30.4
16 .4
+13 .6 +13.0
2. 6
Other oities .... .. + 4.1 - 6. 1
Independent stores:t
+12 .7
ArIZona .. .. .... . +14.4 .... ..
2. 6
Oklahoma ....... + 6 0 + 3 .3
New M.xieo ..... +12 7 ......
9S
6.9
Texas .. .... .. ... + 0.8 + 2.1
Wholcsele trade:t
Machinery, cqp' t &:
s uppl ies (el cept
electrical) .. .... . +41.6 - 4.0
+87 .0
.... .. .. ....
26 . 2
......
+23 .0 + 3.0
37. 0
Dry goods .. ...... + 6.0 - 12 . 6
Groceries .. .. ..... + 0.6 + 3 .6
+ 8.2
+13 .3 .6
01.0
Drugs .. .......... +16 .0 - 3.6
+16. 2
+ 2.4 + . 1
76 .6
Hardware ........ + 6.6 - 0.4
+ 6. 6
+ 8. 6 + 1.7
67 .1
Electrical supplies. +11.2 +10 .7
+12 .4
86.0
Tobacco & prod's.. + 4.4 +11.7
0.0
84.8
Surgical eqp't ..... -11.1 +33 .3
- 17.0
66 .2
·Stooks at olose of month. tCompiled by United States Departmont of Commoroo.
,...------- - -v
+
+
+
+
+
,
+
+
+
+
+
+
+
+
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1023·25 nvernge= IOO)
With seasonal adjustment
Without seasonal adjustment
Total Eloventh Dist ..
Dallas ..... .. .......
Fort Worth ..........
Houston ... .. . ...... .
San Antonio .... ... ..
Sales-Feb.
1040
1039
107.3 104.8
110.2 ~~46·. ~
110.6
101.2 104.6
9S . 2
01.0
Stooks-Feb.
1940
1939
70 .3
66 . 6
71.5
70.3
64.6
61.0
64 .3
40 .2
66 .6
52.S
Sales-Feb.
1040
1930
01.2
80 .1
104 .0 100 .6
01.7
88. 3
86.0
88.8
S1.6
76.6
Stocke-Feb.
1940
1930
67 .5
63 .0
OS. 6
67.6
62 .0
50.4
50 .6
46 .8
56.2
63.3
194,0 was nearly one-fourth larger than a year earlier. The
production of lambs in 1939 was substantially lower than
in the preceding year but a decline in marketings was
responsible for a further increase of 2 per cent in the sheep
population. In Texas, marketings of sheep and lambs during
1939 were about 15 per cent smaller than in 1938. In the
cattle division of the livestock industry, lower production
combined with heavier shipments to markets and to feed lots
and pastures caused a further decline in the number of cat·
tle and calves on farms. Reflecting a continuation of the
trend toward mechanical farming, the number of horses an~
mules on farms declined further by 3 per cent in 1939 an
at the beginning of the current year the number was IB
per cent less than the 1929·1938 average.
Production of wool in the Eleventh District during 1939
amounted to 100,200,000 pounds, which was 2 per cent less
than the record growth in 1938 but above that for any pre·
ceding year. A lighter weight per fleece, caused by a sloW
development of sheep in the spring of 1939, was responsible
for the decline in production during the past year. The nuJl1'
ber of sheep shorn in 1939 showed a moderate increase over
thaL a year earlier. Despite the contraction in output, cash
income from the sale 'If wool was 12 per cent higher th~n
in 1938, reflecting an average increase of 14 per cent In
local market prices. Production of shorn wool in the United
States during the past year recorded a new high at 377,
4,00,000 pounds, which was 2 per cent higher than the 193B
growth.
Mohair production in this district increased 12 per ce~t
in 1939 to 17,700,000 pounds, and cash income from thiS
source was more than 50 per cent greater than in the pre·
ceding year. The 1939 clip in the Eleventh District rep'
resented about 95 per cent of all mohair produced in the
United States, which aggregated 18,700,000 pounds.
FINANCE
Daily average reserves of member banks maintained at
Federal Reserve Bank of Dallas declined about $2,000,00
during February and remained at the lower level during thd
first half of March. In the latter period, reserves avera~e d
about $30,000,000 higher than in the corresponding peno
tho
NUMBER AND VALUE OF LIVESTOCK ON FARMS AS OF
JA NUARY 1, 1930 AND 1040-(OOO's omitted)
,
TOlas - - - - v - - E leventhDistriott-----No. head
Totnl value
No. hend
~
1040
Horses and oolts ... . . .
670
669
Mules and mule colts .
6,677
All oattle and oalves . .
Milk cows· ...... . . .. 1,443
Hogs, including pigs .. 2,203
All sheep nnd lambs .. 10,069
Goats and kids ... .... 3,300
1930
1040
1039
670' 34,860' 36,871
687 63,347 50,212
6,066 100,782 170,348
1,458 64,834 62,4S8
1,820
13,000 14,310
0,S66
40,413 43,046
3,142
10,560 8,79S
1940
10aO
1040
193007
1,350
1,384 ' 70,440' ~~'t87
1,052
1,002 80,997
'IS2
12,229 12,363 374,502 3~~'IBl
2,618 2,615 108,353 28'795
4,674
3,807
26,077 62'171
13,006 13,660
70,137 +8'198
1:3,300 1:3,142 1:10,660",,:,:-::
$610,49 0
Total . . . . .. .. . 23,677 23,130 S361 ,042 $342,404 36,610 36,42S $640,71
cd in
·Cows nnd heifers two yenrs old and over kept for milk; number nnd valuo iDclud 5¥o
"all cattle and calves."
tEleventb District figures represent oombined totals for tbe
states wholly or partially inoluded in the Elovonth Distriot.
lTexas only.
SOURCE: United States Department of Agriculture.
-- ------ -- - - -----a
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Fobruary
Fobruary Change over January
1040
1030
1040
year
20,520
33,684
-4,064
41,460
Cattle ... .. .. . ... . .. . . . ..
-2,640
18,456
23,476
21,096
Calves .. ... ... .. . .. .... .
37,837
30,662
40,654
+7,175
Hogs .. .. ............... .
20,680
38,614
- 3,084
3S,760
Shoep .. .. .... .. ........ .
OOMPARATIVE TOP LIVESTOCK PRICES
(Dollars por hundredweight)
February
February
1040
1030
$10.25
Beof steers .... .. . . ... . .. . , . ..... . ... . . . ..... . ... . , 0.25
8.76
0.00
Stooker steers ........... . . .. . .. •. . . ..... .... .....
11.00
10.00
Heifers and yearlings ... . .... . . .. .. ......... .. .. ..
6.60
6.60
Butcher cows ....... ... ........... .. ... ......... .
0.00
8.60
Calves . . .. . . .... ... ... .. . . · ······ ·.··•· · ·· ... · . .
8. 10
6.60
8.50
~:ti;.·.:::: :: :::: : :: :: ::::::::: : :: : :: :::: :::::: 8.76
JanuarY
1040
$ 0.35
8.S0
10. 00
6.60
9. 00
6.86
8. 60
MONTHLY BUSINESS REVIEW
last year. Since the beginning of 1940 excess reserves have
~veraged about 60 per cent of required reserves. Total earntng assets of the Federal Reserve Bank of Dallas showed
little change between February 15 and Maxth 15. Federal
Reserve notes of this bank in actual circulation showed a
further seasonal decline during the past month, but the
total outstanding on March 15 was $3,900,000 higher than a
year ago.
d The seasonal liquidation of loans that had been in evi· ence during the first six weeks of 1940 at weekly reportIng member banks in leading cities of the Eleventh District
Continued during the four weeks ended March 13 but at
a slower rate. In the latter period loans were reduced
$4,600,000, making a total contraction of $16,200,000 since
the beginning of 1940. Although the decline in loans thus
far this year contrasts with a moderate increase during the
~~rresponding period of 1939, the total of $270,600,000 on
"Vl/lrch 13 was still $23,900,000 greater than a year ago.
Ihvestments of these banks showed little net change during
t2 e four-week period. Total loans and investments of $532,00,000 on March 13 were $4~900,000 less than four weeks
darlier, but $26,100,000 greater than on the corresponding
ate last year.
Adj usted demand deposits at reporting banks expanded
further between February 14 and March 13, but this increase
~as more than counterbalanced by a sharp contraction in
Interbank deposits. Total deposits at the middle of March
Were $106,200,000 greater than a year earlier.
f Charges to depositors' accounts at banks in principal cities
the Eleventh District declined less than seasonally from
· anuary to February and the increase over the correspond~ng month last year widened to 12 per cent. In the preceding
· OUr months, debits averaged about 9 per cent higher than
In the same period of the previous year. The dollar volume
o.f debits during February was the largest for that month
Slnce 1929_
J
INDUSTRY
b Construction activity in the Eleventh District, as measured
y the value of contracts awarded, rose 8 per cent from
Jan~ary to February, reflecting marked increases in residenhal and non-residential building. Moreover, the total
Va lUe of awards was the largest for any February in several
~ears, exceeding that in the corresponding month of 1939
y 11 per cent. Residential building, which had shown a
dOWnward trend in the preceding four months, increased
to a point 52 per cent higher than in January and 28 per
dent.above.th~t in February.last year. T~e expansion in resiD~hal bUlldmg reflects chlefly the lettmg of contracts for
· Dlted States Housing Authority projects and an increase
~n speculative building. Non-residential building continued
expand during February due principally to the larger
hwards for manufacturing buildings. Total non-residential
uilding was about 44 per cent greater than in February last
~ear: In contrast with the rise in residential and non-resiential bUilding during February, public works and utilities
fionstruction, which consists in large part of publiclynanced projects, declined sharply, being about one-third
slllaller than in February a year ago. During the first two
nths of 1940 privately-financed construction constituted
per cent of the total, which compares with about 50 per
Cent'lD the comparable period of 1939.
Production of crude petroleum in the Eleventh District
~nd in the United States expanded 3 per cent from January
.A. February and continued at a higher level than a year ago.
t further increase in output was recorded during the first
Wo weeks of March in consequence of higher production
°
is°
allowables in several major producing states. In Texas the
allowable was more than 160,000 barrels daily above the
estimated demand for Texas crude oil as computed by the
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollal'!J)
March 15, March 15,
1040
1039
Total cash rC!ervC! . .. .. ..... .. .. ..... . .. .. .. .... . $240,059
$230,025
Dieeounts for member banla! .. . . . . . ............ ... .
131
319
Other bills discounted .... . . .. . . . .. .. . ...... .. .... .
60
NOllc
Industrial advances . .. .... . . ......... .... .. ...... .
481
601
Bills bought in thc open market ... .... ...... ...... .
Nonc
16
United States Government securities . . . .. . . . ....... .
04,362
106.419
05,034
Total carning aBBets .. . .. .... .. . ....... .. .. .... . . .
107,355
Member bank reserve deposits . . .. ... .. ... . . . .... . .
210,002
183,096
Federal Reserve notes in notusl circulation . .• . ... . ..
76,206
8~~~:
Commitments to make industrial advaneaa ..... . . .. .
44
Feb. 15,
1040
$248,535
69
151
483
None
94,362
05,065
217,582
8~~!~
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
March 13, March 15,
Fcb. 14,
1940
1030
1040
Totallcans and inve. tment!. .. ... ... . . . . . .. . . ..... 5532,227
$506,151
5537,126
Totallo.ns . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. .. . .. .
270,566
246,644
275,186
Commercial, indu. trial and agriculturalloana. . . . . .
170,521
161,778
182,522
Open market paper .... . .. . ..... ....... . .... . . . .
1,812
921
2,040
2,802
Loans to brokers and dcalel'!J in securities . . . . . . . . . .
3,642
3,313
Other loan. for purch••ing or carrying securities . .. .
13,303
14,239
13,063
Rcal e.tate loan.. . . . .. .. . . .. . .. . .. .. .. .. .. . .. . .
22,234
10,844
21,921
246
Loans to b. nks .. ... ... ... .. , ... .... . .. .. .. .. .. .
235
273
51,602
All other loans. . . . .. .. .. .... .. . . .. .. .. . . . . . ....
49,819
46,276
153,167
United States Govcrnment direct obligations. .. . . . ...
152,901
15n,745
51,036
Oblig. ticns fully gu.r. ntced by United State.!! Govt . .
51,036
47,504
56,837
Other .ecurities . . . ...... .. .. .... .. .... .. ..... .. ..
57,724
52,168
141,473
Reserves with Feder.1 Reserve B.nk.... . . ... . .... ..
140,532
111,054
294,248
Bal.nces with domestie banla!.. ... ... . . . . . ... .. .. ..
301,021
248,858
474,822
Dcm.nd dcposits- .djusted·. . . . . . . . . .. • . .. ..•. . • .
483,687
438,788
135,788
Time deposIts . . . . . . . .. . . . . . . . . .. .. . .. . .. . •.. .. .. .
136,503
136,469
31,016
United States Government dcposits . .. ... ........ . ..
31,117
34,385
Interbank dcposits . .... .. .. .. . . .. . .. . .. . . .. .. .. . ..
272,484
208,036
28~~!~
Borrowings from Feder.l Reserve Bank. .. . .. .. . .. . .
None
None
'Includes all demand deposits other tban interbank and United States Governmcnt, less
cash items reported as on hand or in the proees! of collection.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER DANKS
(Average of daily figures- in tboueands of dollars)
Reserve city banla!
Country banla!
Combined total
February,
Febru. ry,
October,
Novcmber,
December,
Janu.ry,
Fcbruary,
Gross
demand
1038 ........ . . Sl,113,O I9
1930 . ....... . . 1,103,160
1039 .. .. ...... 1,305,705
1030 .... .... .. 1,340,118
1030 .... ... ... 1,344,386
1040 .....•. . . . 1,340,235
1040 .... .... .. 1,355,474
Time
$216,344
225,328
231,363
232,340
234,145
233,470
234,306
Gross
demand
$606,222
674,977
760,455
777,045
777,031
775,643
786,130
Time
$110,587
124,075
127,567
128,081
130,200
120,435
12D,055
GroS!
demand
$507,697
518,183
545,250
563,073
566,455
564,502
570,344
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
Febru.ry
Fcbru.ry Pctg. change January
1040
1039
ovcr year
1040
Abilene .. .... .. .. .. ..... $ 8,068
S 7,320
+10 . 2
S 0,050
Austin............ ......
31,392
31,677
-.0
36,684
Be.umont . .. ... .. ..... ..
23,242
22,565
+ 3 .0
25,262
Corsicana.... .. ... ......
3,357
3,210
+ 4. 6
3,546
D. llas.. .. ...... .. .... ..
246,780
215,529
+14 .5
277,437
EI Paso. .. .. .. .. .. .. ....
29,231
28,681
+ 1.0
31,518
71,651
67,544
+ 0.1
80,184
Fort Worth ............. .
Galveston.... ....... ....
30,075
22,876
+31.5
28,396
Hou.ton........ . .. ......
227,060
109,348
+13.0
257,517
9,175
8,060
+13 .8
0,773
Port Arthur ....... ......
Roswell .. ...... . .. .. ....
3,053
3,301
+16.6
4,255
San Antonio......... .. ..
66,023
60,474
+ 0.2
70,445
Shreveport .. .. .. . . . . . .. .
42,064
30,285
+ 0.4
47,817
Tex.rkana· . ....... .. ....
6,813
6,245
+ 0.1
7,272
Tucson ......... ... ......
11,368
11,386
.2
12,353
~~~~ :::: : :::::: :: :: : :::
Wicbita Fall. . . . . . . . . . . . .
tU~i
16,420
&~~
13,108
t:U
+24.4
:~:~~~
16,057
Time
$ 96,757
100,353
103,706
104,259
103,846
104,035
105,251
Pctg. change
over month
- 10.0
- 14 .4
- 8.0
- 5.3
- 11 . 1
- 7.3
- 19.7
+ 5.0
-11 . 8
- 6.1
- 7. 1
- 6.3
- 10.1
- 6.3
- 8 .0
+U
+ 2.3
Total.... . .. .... $853,086
$763,304
+11.8
S052,728
- 10.5
'Includes the figures of two banla! in Texarkana, Arkansas, localed in the Eighth District.
SAVINGS DEPOSITS
February 20, 1940
Number of
rccorting
anla!
3
Beaumont .. . . . .•. .. . . .. .
Dallas .. .. . ... .. . .. .. ...
El Paso ....... ..... .....
Fort Wortb ..............
Galveston .. ..... . .. . . ...
Hou. ton .... .. . ... .. .....
Port Arthur . .. .... ......
S. n Antonio . .. .. .. ... . ..
Sbreveport ... . ..... . . ...
Waco ....... .. . ...... .. .
Wichita Falls . ..... ... .. .
All otber ......... .. .. .. .
10
2
5
Total ..... . ...
l15
8
2
3
4
3
3
3
69
Number of
savings
depositors
0,955
80,565
17,085
35,057
18,950
77,310
5,815
22,916
25,003
8,316
7,278
60,021
-380.070
--
Percentage ch.nge in
savings deposit. from
Amount of:
Fcb.28,
J.n.31,
aavinWl
depOSIts
1040
1039
$ 3,051,270
+ .6
+ .6
26,335,635
- 2.6
- .3
8,306,700
.2
+2.1
13,106,337
-4 .8
- .7
12,220,646
+1.6
.4
31,100,435
+5.0
+ .4
3,142,551
+8 . 1
+1.2
-5 . 6
- .1
17,806,151
12,040,806
+4 . 6
+ .1
- 1.2
4,644,739
- .3
-1.0
3,700,798
-3.8
30,364,264
+2.7
+ .1
+
$106,810,341
--+ .5
0.0
MONTHLY BUSINESS REVIEW
4
United States Bureau of Mines. Daily average production
in the United States during the first half of March was at
an all-time peak, exceeding the estimated demand by about
10 per cent. Stocks of crude oil in the Eleventh District and
the United States rose 2 per cent in February and trade
reports indicate that a further gain has occurred since the
first of March. Inventories of crude oil have increased substantially since last October, but they are still much smaller
than a year ago.
Refinery operations in the United States during February,
as measured by crude oil runs to stills, continued at about
the January rate and exceeded those of a year ago by about
11 per cent. Production of gasoline was substantially in
excess of consumption, with the result that stocks of motor
fuel increased sharply further to a newall-time high on
March 2. On that date, they were 15 per cent greater than
the heavy supply at that time last year. Inventories of heating oil were reduced further in February, but stocks of fuel
oil have shown little change since the beginning of 194,0.
Drilling activity during February in both the Eleventh
District and the United States was at a much lower rate
than in January. In comparison with a year ago, operations
in this district showed a noticeable curtailment, but for the
United States they were only moderately smaller.
Domestic consumption of cotton was maintained at a high
rate during February notwithstanding a decline of 9 per cent
from the volume consumed in the preceding month. The
663,000 bales processed in February was only slightly lower
than the all-time high for that month recorded in February,
1937, and was 18 per cent greater than the amount utilized
in the corresponding month last year. Mill sales of cotton
goods continued below output during February, but there
was some improvement in buying during the first half of
March. Prices of cotton goods declined further and mill margins, which have shown a downward trend in recent months,
receded to a level 23 per cent below the 1939 peak recorded
last October. Stocks of raw cotton in consuming establishments were reduced further by 4 per cent during February
and the supply in public storage and compresses declined
8 per cent.
The movement of American cotton into export channels
during February was 27 per cent smaller than in January,
but it was sharply higher than the average shipments for
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
February
February
January January 1 to February 20
1940
1930
1040
1040
1030
$ 31,047
$ 33,243
Eleventh Distriet-tota!. . . $ 16,603
$ 15,022
$ 15,344
10,081
11,304
Residential . . . . . . . . . . . .
6,615
5,167
4,366
20,066
21,840
All other . . . . . . . . . . . . . .
0,088
9,855
10,078
396,765
471,870
United Stateso-toto!.. . .•
200,574
220,107
106,101
152,258
150,183
Residential. ...........
74,858
70,020
77,400
244,507
312,687
All other . . . ... ... .....
125,716
141,177
118,701
°37 states east of the Rocky Mountains.
SOURCE: F. W. Dodge Corporation.
BmLDING PERMITS
Percentage change
Percentage
valuatien from Jan. Ito Feb. 20,1940 ehan&e
, valuation
v
v
Valuation Feb.,19aO Jan.,1040 No.
Valuation from 1039
$ 26,160 +118.2 -50.7
37 $ 91,005
1.1
04
137,701 + 10 .3 + 3.8
270,538
5.9
750,220 + 7.3 +56.2
540
1,233,407
- 20 .0
128,488 + 25.2 +63.3
172
207,188
+ 6.5
2,717,752
1,405,042 +507.3 + 7. 2
384
+130.3
1,129,082 - 11.2 +20.0
2,002,360
056
- 27.1
173,722 + 23.4 +28 .0
160
300,480
- 18.0
494,902 - 56 .6 +74 .8
375
778,015
- 47.1
248
488,670
153,080 + 35.9 -54.4
+ 97.6
5,168,175
1,502,470 -17.2 -50.0
883
+ 34.1
170
152,793
87,585 + 85.6 +34.1
- 17 .6
860,453
0. 2
432,371 + 31.4 -1.1
957
246
587,201
270,736 - 64.3 - 0.0
- 47.0
234,356
81,413 - 16.3 -46.8
116
- 41.3
62
131,617
42,987 - 20.6 -51.5
+ 10.2
February, 1940
Abilene .... ... .
Amarillo . ......
Austin .........
Beaumont ......
COr£us Christi. .
Da as· ........
EI Paso ........
Fort Worth .....
Galveston ......
Houston ....... .
Port Arthur . ..•
San Antonio ....
Shreveport ....•
Waco ..........
Wiohita Falls ...
No.
18
47
268
07
102
525
102
220
146
432
109
621
110
45
34
------ -
1.6 -18.0
Total. ..... 2,866 $6,826,808
.Inoludes IDghland Park and University Park.
--
-
- - - - -3.2
-
6,368 $16,242,239
+
that month and nearly three times the small movement in
February last year. Cumu1ative exports of cotton during the
first seven months of the current season amounted to 4,917,000 bales, whi~h was twice the volume shipped in the comparable period of the previous season and about equal to
the 1929-1938 average for that period. Reports indicate that
cotton mill activity in most foreign countries continues at
a high rate.
In contrast with a moderate increase in operations at all
mills in the United States, the rate of activity at cottonseed
crushing establishments in Texas during the first seven
months of the 1939-1940 season was somewhat lower than
that in the corresponding period of the preceding season.
Although the demand for all products except linters has
been smaller this season, the reduction in physical output
of mills is accounted for chiefly by a smaller supply of cottonseed, the estimated tonnage from the 1939 cotton crop
being 8 per cent less than that a year earlier. Mill stocks of
cottonseed and cottonseed products at the close of February
were sharply lower than a year earlier. During the first half
of the current season, domestic exports of crude and refined
cottonseed oil and linters showed a marked increase over the
respective totals for the comparable period of the preceding
season.
CRUDE OIL PRODUCTION
(Barrels)
February, 1040
Inorease or deorease in daily
average production from __
Total
Dailyavg.
production
production
Jan., 1940
Feb., 1030
North Texas ............ . ... .
5,075,700
175,024
+13,455
+30,205
7,680,550
West Toxas ......... . ...... ..
- 3,085
264,847
+22,749
East Toxas ...... .. . . . . ..... . 14,349,560
404,812
+20,099
+17,267
6,376,200
South Toxas ....... . ........ .
210,809
-31,520
+11,725
6,715,100
+ 2,832
Texas Coastal ............... .
231,555
+12,823
Total Texas ... . .... .
New Mexico .... . . .. ........ .
North I,ouisiana .... . .... . ... .
40,197,100
3,215,150
1,980,950
1,386,107
110,867
68,610
+51,584
+ 8,002
- 2,208
-
+46,026
+ 6,667
31
-
Total District ... . . .. . 45,402,200
1,565,608
+58,338
+61,602
SOURCE: 'The Oil Weekly, Houston, Texas.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
___- - - Texa. ------v--United States----Augu.t I to February 20
August 1 to Fobruary 29
This season
Last season
This season
Last season
Cottonseed reeoived at mills
3,008,290
884,718
(tons) ........... .. ....... .
967,164
3,886,211
3,451,643
865,808
Cottonseed orushed (tons) .... .
059,800
3,485,047
Cottonseed on hand Fob. 20
789,367
73,018
(tons) ..... .. ............. .
180,388
521,700
Produotion of products:
Crude oil (pounds) ..... ... . 250,461,341
281,383,921 1,005,202,827 1,072,021,616
412,504
1,552,726
Cako and meal (tons) . ..... .
448,260
1,567,420
891,980
223,791
Hulls (tOllS) .............. .
255,764
881,870
850,389
200,282
Linters (running bales) ..... .
210,804
885,440
Stocks on haod February 20:
121,278,01 3
Crude oil (pounds) ...... . . . 25,102,170
42,815,516
79,652,434
244,470
61,369
Cako and meal (tons) ...... .
62,789
200,178
140,011
43,884
Hulls (tons) ... .. ......... .
67,878
105,026
564,930
Lintors (running bales) ..... .
96,820
152,012
822,562
SOURCE: Bureau of CODSUS.
CONSUMPTION, STOCKS AND EXPORTS OF COTTON
(Bales)
February
February
January
AUj!Ust 1 to FebruarY 29
1040
1080
1040
ThiS season Last seaBOD
Consumption at:
82,453
71,540
• Toxas mills. . . . . . . . . . . .
11,451
0,785
12,827
United States mills . ... .
662,650
4,704,504
3,960,420
562,580
730,148
U.S. stoeks-and of month:
In consuming estab'mts. 1,701,510
1,559,417
1,776,031
Public 8tg. '" compresses. 12,157,074 14,134,827 13,206,819
Exports from U. S. to:
310,263
192,631
United Kingdom ...... .
33,805
370,609
1,525,928
304,082
130,230
Franco ....... ........ .
10,348
178,310
617,004
74,404
24,302
Italy ................. .
67,627
386,132
107,~}
226, 0
Germany ..... . ....... .
None
25,872
None
18,002
102,307
Other Europe ......... .
80,070
567,314
100,017
017,832
504,3
01,000
Japan ................ .
65,063
101,019
675,180
247,266
All other countries ..... . 155,118
22,563
133,156
775,543
Total exports. . . .
746,680
203,022
1,026,628
4,016,511
-2,456,803
RECEIPTS, EXPORTfl. AND STOCKS OF COTTON AT THE PORTS OF
HOUI)TON AND GALVESTON-(Bales)
9
February
February
January
August 1 to FobruarY ~D
1040
1030
1040
This seasoo Last seas
RE~epeoirPttss.............. . ..... .' ....... '. 335,010
52,570
331,642
3,308,441
1,8687'~~~
416,980
208,332
503,351
2,815,101
1,67 ,
Stocks, end of month ... .. 1,495,844
1,397,323
1,586,136
•.. .•.. ,
A
MONTHLY BUSINESS REVIEW
APRIL 1, 1940
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
INDUSTRIAL PROOUCTION
POIHTIIN TO'PJ..1JrC)!)(
140
110
LeI.
-....,/ v
~Al
/
v
b
11934
f--./
100
v
eo
~~ -1
.\ / V
r
40
)\
\ /
60
I 20
eo
40
IV....,~ ~
20
MljERALS
19315
I1D6
o
1937
1938
1939
1940
~ndex of physical volume of production. adjusted
nor seasonal variation. 1923-1925 average
100.
Udl'able manufactures. nondurable manufactures.
~n minera ls expressed in terms of points in the
otal index. By months. January. 1934. to February. 1940.
=
FRElGKT CAR UlADINGS
POIHT11H TOTAl.. INOD
I 00
eo
lA,1t7TAl
~
V
'tv./
I<IOIlL
--=~
IBM
19:10
ous
",
.,
80
I'
80
~
'"
00
-v"" r----'
AU.D]! ~
ooAl
1938
rJ
/
'\
UI37
20
:--- rv
1938
f93EI
a
1040
}~dex
of total loadin gs of revenue freight. ad_ sted for seasonal variation. 1923-1925 average
~OO. Miscellaneous. coal. and a ll other expressed
erms of points in the total index. By months.
January. 1984. to February. 1940.
i;:;
WHOLESALE PRICES
... "or
110
'00 I-
100
.,..I
~
-'"\
'v
eo
""""- -J'
60
'-1934
tt
19"
1936
1937
t938
1939
t940
ex compiled by the United States Bureau of
01' Statistics. 1926
100. By weeks. 1984 to
week ending March 9. 1940.
=
MONEY RATES IN NEW YORK CITY
... <Un
4
~'93~4~-~~3~~~'~9~~~'9-~~~~~3~8~-'93~9~-'9-40~
~or
°
Weeks ending January 6. 1984. to March 16.
1940.
Industrial activity showed a further sharp decline in February and a less marked
reduction in the first half of March. Wholesale commodity prices generally were steady,
following some decline in January and early February.
PRODUCTION
In February the Board's seasonally adjusted index of industrial production was 109
per cent of the 1923·1925 average as compared with 119 in January and 128 in December.
A funher decline at a slower rate is indicated for March on the basis of data now available.
In August, 1939, the month prior to the outbreak of war, the index was 103.
Steel production, which had risen sharply in the latter part of 1939 and then decreased
considerably in January, showed a further marked reduction in February to 69 per cent of
capacity. In the first half of March output was steady at a rate of about 65 per cent. Plate
glass production declined further in February and output of lumber, which had dropped
sharply in January, showed less than the usual seasonal rise. Automobile production in
February was maintained at the high level prevailing in January. Dealers' stocks of new
cars rose to high levels in this period, notwithstanding the fact that retail sales of cars were
in large volume for this time of the year. In the first half of March output of automohiles
showed less than the customary sharp increase. In some industries not included directly in
the Board's production index, particularly the machinery, aircraft, and rayon industries,
activity continued at high levels.
Changes in output of non·durable goods were largely seasonal in February except at
textile mills and sugar refineries. At cotton textile mills activity declined somewhat from
the high levels prevailing since early last autumn. Activity at woolen mills, which had
decreased considerably in December and January, declined further in February and output
of silk products was reduced to an exceptionally low' level. Sugar refining showed less than
th e sharp rise usual at this season.
Mineral production declined in February, owing chiefly to the considerable reduction in
output of anthracite. Bituminous coal production declined somewhat, following a rise in
January, while output of crude petroleum increased to new high levels.
Value of construction contract awards in February showed little change from the January
total, reflecting a further decrease in contracts for public construction and a contraseasonal
increase in private contracts, according to figures of the F. W. Dodge Corporation. The
increase in private residential awards nearly equalled the decline that occurred in the
previous month when severe storms curtailed building operations in many areas.
DISTRIBUTION
Retail distribution of general merchandise showed little change from January to Feb·
ruary and remained somewhat below the high level of the latter part of last year, with due
allowance for seasonal changes. Sales at variety stores and mail·order houses showed ahout
the usual seasonal rise in February, while at department stores, where some increase is also
usual at this time of year, sales remained at about the January level.
Freight-car loadings declined considerably from January to Fehruary, reflecting for the
most part a sharp reduction in coal shipments and some further decrease in loadings of
miscellaneous freight.
FOREIGN TRADE
Exports of United States merchandise in February declined less than seasonally from
the high levels reached in December and January. The principal decreases were in ship.
ments of cotton, copper, and aircraft, which had been exceptionally large in previous months.
Exports to Japan {ell sharply and th ere were declines also in shipments to the United
Kingdom, the Netherlands, and Russia, while exports to Belgium and the Scandinavian
countries increased _
There has been little change in the rate of gold inflow. The monetary gold stock in·
creased by $246,000,000 in February and by $109,000,000 in the first two weeks of March.
COMMODITY PRICES
Prices of nonferrous metals advanced from the middle of February to the middle of
March, while steel scrap and textile materials declined somewhat further. Most olher com·
modities showed little change and in the week ending March 9 the general index of the
BW'eau of Labor Statistics was at 78.3 per cenb of the 1926 average as compared with 78.5
a month earlier.
GOVERNMENT SECURITY MARKET
Following a relatively steady market during February, prices of long·term Treasury
bonds increased sharply after the announcement by the Treasury early in March that i ts
operations during that month would be limited to the issuance of a five-year note to refund
a note maturing next June.
BANK CREDIT
Total loans and investments at reporting member hanks in 101 leading cities rose duro
ing the six weeks ending March 13, largely as a result of increases in investments at New
York City banks. Following a reduction during Jallual'y, commercial loans increased, mostly
at banks in cities outside New York. Bank reserves and deposits continued to increase
during the period.
@FedFRASER