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Monthly Review of Business and Industrial Conditions in the Eleventh Federal Reserve District, Federal ReserVe Bank of Dallas w. F. RAMSEY. Chairman and Federal Reserve Agent. Volume 5 A CHAS. C. HALL, A.sistant Federal Reserve Agent Dallas, Texas April 15. 1920 Salient developments of the business and industrial situation in this District during March were: a revival of trade on new high levels of volume and prices for the spriJ;lg season; a late and rather unfavorable start in the planting of staple crops; the Opening of the spring livestock movement; an enhanced demand and an enlarged production in the petroleum industry; an organized effort to co-ordinate the factors of supply and demand in the farm labor problem; and a steady expansion of credit to :meet the seasonal requirements of the District. In retail trade the Easter season brought with it a renewed wave of buying that overturned previous predictio~s to the effect that trade had about reached the point of saturation. At the same time, the March situation furnished tangible evidence that the public has definitely realized the necessity of curbing, to some extent, its former reckless disregard of the price question. While March trade Was generally characterized by an activity almost as buoyant as prevailed in January, more discrimination is reported to have been shown by the conSUmer in his purchases. The desire for the higherpriced articles persists, but the ability and willingness to pay any price asked has visibly diminished. Despite this tendency toward price resistance on the part of the public, seasonal needs and scarcity of merchandise combined to carry the volume of trade and scale of prices to higher levels in March, and in some lines, notably clothing and dry goods, but little relief in the direction of lower prices is hoped for until after next fall. In the meantime, the public's sustained buying power and lingering addition to extravagance constitute a puzzling subject of thought and comment. The slogan "produce more and save" was never preached with more reason and logic than at the present time, when increased production is the sole and certain means of enhancing the purchasing power of current savings. Eleventh District banks substantially increased their loans to customers during the month of March and at the same time witnessed the beginning of the annual decline ' in deposits. These movements denote the normal demand for money at this sea- No.3 son of the year for the purpose of financing the needs of the District until the returns from next harvest are received. Evidences of increased conservatism in the credit operations of the banks continue to appear. The higher discount rates prevailing this year are being complained of now and then by their customers, indicating that the increase in the Federal Reserve rates is beginning to be felt by the public, at least to the extent of discouraging all but essential loans. The member banks also continue to be more sparing in their use of the Federal Reserve Bank's credit facilities than they were a year ago, although this is largely due to the stronger position they occupy by reason of a heavy accumulation of deposits, rather than to the increase in Federal Reserve rates or a slackening in the demands of their borrowing customers. AGRICULTURE: The average condition of winter wheat in this District is 70 %, according to current reports, which compares with a condition of 75 % a month ago. The deterioration is in part due to insect damage, the appearance of the greenhug having been recently reported in a number of North Texas counties. The planting of cotton and corn is well advanced in South and Southwest Texas, while in the northern part of the state planting is late and progress is slow on account of the dry, cloddy condition of the top soil, du to the protracted period of dry weather wbich extemleil f rom the fit'st week in February to the last week in March. While the state is generally blessed with an abundance of moisture in the subsoil, as this is written rains are needed to insure proper germination of seed. As a result of the reappearPink Bollworn ance of the pink bollworm last year in a few of the cotton-proto be Exterminated ducing counties of Texas, the Texas Legislature will be shortly convened to strengthen existing legislation looking to the extermination of this pest. The proposed amendment contemplates the establishment of noncotton zones around the infested areas, and a rigid program of discontinuing for a period of years the This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) growing of cotton wherever the worm appears in the 1920 crop. The plan contemplates state aid for the farmers who suffer losses by reason of the prohibition of cotton production. Further Damage Three-fourths of the Texas fruit crop has been killed by March and April cold waves and hail storms, according to reports received by the State Department of Agriculture. Press dispatches also indicate that one-half of the East Texas tomato crop was destroyed by late frosts. by Late Frosts Cotton Movement Both Galveston and Houston reported a slackening of cotton receipts in the month of March as compared with the preceding month, although shipments showed a substantial increase. The strong foreign demand for the staple was reflected in a gain of 674,042 bales in the season's total exports through the port of Galveston to March 31, 1920, over the total exports for the corresponding date last year. This compares with a gain of 603,383 bales as of February 28, 1920, over February 28, 1919. MARCH COTTON MOVEMENTS Galveston March receipts ........................................................ 174,495 March shipments .................................................... 266,756 Stocks on March 31st.............................................. 233,038 Houston 168,953 156,165 260,948 GALVESTON STOCK STATEMENT Mar. 31, 1920 For Great Britain................................................... . 24,582 For France ............................................................... . For other forei gn ports......................................... . 52,960 8,500 For coastwise ports.................................... ···.····· .... . In compresses and depots..................................... . 146,996 Mar. 31, 1919 18,933 7,000 18,800 1,000 217,529 Total .................................................................. 233,038 . 263,262 GALVESTON COTTON EXPORTS This Season Total foreign exports to March 31.. .................... 1,641,233 Total coastwise exports to March 31.................. 290,355 Last Season 967,191 317,880 Total exports to March 31.•..........................1,931,588 1,285,071 Grain Movements Reports from grain inspectors at five of the leading grain markets of the District reflect a brisker movement for the month of March than for the preceding month. Corn receipts exhibited a gain of 51 %, wheat 33 % , and oats 18 % . A detailed statement of the combined receipts at the principal cities, based on inspectors' reports, is shown below. COMPARATIVE GRAIN RECEIPTS February (cars) Wheat ............................................................................ 1302 Corn ...............................:................................................ 198 Oats ................................................................................ 331 March Cash Grain Prices March (cars) 1740 300 393 In sympathy with outside markets local cash grain quotations moved upward during the month of March, the most pronounced gain being regis- tered by wheat. Opening and closing quotations at Dallas for the month of March were as follows : COMPARATIVE GRAIN PRICES March 1st Wheat-Basis No. 1 red ............................................ $2.65 Corn-No. 2 mixed .................................................... l.58 Oats-Texas red No.3, even weight bags delivered Texas common point territory ............ 1.02 March3lst $2.81 1.62 1.07 LIVESTOCK: Range Ranges are greening rap i d I y Conditions throughout the District, and as the spring season advances grazing conditions are showing steady improvement. Livestock is generally reported to be thriving, though low night temperatures in the Northwestern part of the District are still in evidence, and late reports indicate that the moderate precipitation in that section during March was not sufficient to relieve the rather dry condition of the ranges. Lambing is proceeding under favorable conditions, and a good yield is in prospect. Cattle inspectors also report an unusually heavy crop of fine calves on the ranges this spring. Livestock Prices March quotations at the Fort Worth market were irregular, but the close of the month found pmces sagging towards lower levels as the spring movement of fat cattle began to make its appearance in force. Beef steers and lambs were the only divisions which recorded gains over the top quotations of February. Stocker cows reached a top of $11.00 in February, while $9.60 was the best figure they commanded in March. Hogs followed an irregular course, some discrimination being shown in favor of the lighter weights, and the month closed with the market about $1.00 higher than at the end of February. As compared with prices a year ago, last month's maximum livestock quotations, with the exception of those on calves, sheep and la~s, reflected decreases of from $1.00 to $3.80. Comparative top prices for March, 1920, and the corresponding month last year were: TOP LIVESTOCK PRICES IN MARCH March 1920 Beef steers ..................................................................$14.00 Stocker steers .............................................................. 11.00 Butcher cows .............................................................. 10.50 Stocker cows ................................. ............................ 9.60 Calves .......................................................................... 14.00 Hogs .............................................................................. 15.10 Sheep ..................... ....................................................... 14.50 Lambs .......................................................................... 20.00 March Livestock Movements 1919 $15.25 14.00 12.00 11.00 14.00 18.90 14.00 19.00 The spring movement of fat stock to the market opened up at a lively rate toward the latter part of March, when South Texas grass cattle and West Texas sheep began reaching the yards in force. Receipts in all divisions netted good gains over the month of February, while supplies of sheep and ~ogs were the heaviest of the present year, exceedIng the January receipts by substantial margins. Buyers from outside markets, attracted by the liberal runs yarded at Fort Worth, enlivened the competition and enabled the market to readily absorb desirable consignments. As was the case in February, calves were scarce and in strong demand. The following table shows comparative receipts at the Fort Worth market for the months of February and March, 1920, and March, 1919. FORT WORTH LIVESTOCK RECEIPTS Cattle ..................................... Calves .................................... Hogs ........................................ Sheep ..................................... . March 1920 52,955 7,579 62,026 28,295 February 1920 46,416 4,210 44,945 11,302 G G G G Loss or Gain 6,539 3,369 17,081 16,993 March 1919 54,140 5,740 72,617 13,745 L G L G Loss or Gain 1,185 1,839 10,591 14,550 LUMBER: Reports from 35 Southern pine mills in the Eleventh Federal Reserve District for the four-week period ending March 26th, clearly indicate that production is making fair headway in catching up with the demand, as evidenced by the following comparative statistics: MARCH LUMBER STATISTICS February (34 mills) Orders received, 4·week period ........................................ 45,632,488 feet Production, 4·week period .................................................... 56,436,596 feet Shipments, 4·week period .................................................... 57,634,032 feet Orders unfilled at end of period........................................ 263,013,504 feet Normal production (4 weeks) ............................................ 64,296,824 feet At the close of February the balance of unfilled orders on the books of the reporting mills represented a total footage approximately equal to four weeks' normal production of such mills. On March 26th the reports of 35 mills showed them to be behind with their orc;lers to an extent equivalent to · about three weeks' normal production. It will be seen that the reduction in the volume of unfilled orders was due to a shrinkage in current orders from retaile:t;s~ rather than to increased shipments. The slackening in new orders as reflected in mill reports for March is believed to.be due to a waiting policy on the part of retail dealers, as a result of a recent downward turn in market prices. March (35 mills) 39,717,405 feet 58,045,898 feet 54,970,699 feet 224,974,771 feet 70,584,388 feet PETROLEUM: Increased In March the Eleventh Federal Production Reserve District produced 11,132,in March 024 barrels of crude petroleum, valued at $31,000,000. The combined production of the four states in the Mid-Continent fields, Texas, Louisiana, Oklahoma and Kansas, amounted to 21,425,610 barrels, this being the best month's record made by the Mid-Continent fields for the past five months. Of this production, the Eleventh District's contribution of 11,132,024 barrels, which was slightly more than one-half of the Mid-Continent output, represented a gain of March Lumber A decided yielding in prices 658,930 barrels over its February record, and also Prices on all items of lumber was a fea- an increase of 197,963 barrels over its January ture of the month of March. production. In Texas there were increases in the Flooring, which on February 1st was selling at Coastal and North Texas fields, and a decrease in around $H5 at the mills, led the list in the down- the output from Central West Texas due to lack ward movement, being in light demand on April of supplies for completing new wells in proven 1st at a price averaging $95 per thousand, or a drop areas. North Louisiana again came to the fore of about 18 % for the 60-day period. The last half with a handsome increase of over 500,000 barrels, of March witnessed moderate but general declines in all classes of lumber. The trade generally takes further emphasizing the rapid development of this the view that these recessions mark the arrival of section during the past three months. The March a long-overdue process of readjustment, and retail- yield of 3,739,022 barrels of oil in North Louisers are inclined to curtail buying until prices have iana was over two million barrels (or about 140 % ) subsided to new stabilized levels. In the meantime in excess of its December, 1919, production. Its the public demand for lumber shows no apprecia- gain over the month of February came chiefly from ble abatement, but rather the contrary. Thus, the the Homer pool in Claiborne Parish. Ranger again tetailers, by allowing their sales to outrun their led the Texas fields, it being the only field in that purchases, are laying up future mill orders which state to report a March production in excess of a million barrels. "viII tend to stiffen prices later on. Drilling There were 583 wells completed ruary record of 69 completions, all of which were Operations in the T exas fields in March, of producers with the exception of four. which 110 were failures, and 473 Prices During the past 30 days an advance of were producers having an initial flow of 110,200 barrels. This compares with a record of 640 completions, 149 failures and 491 producers for the month of February. The North Louisiana drilling results for March were also slightly off as contrasted with the previous month. Out of 73 completions this section had 14 failures, including 8 due to salt water encountered in the Homer pool, and a total of 59 producing wells having an aggregate initial production of 44,730 barrels, against a Feb- 25 cents per barrel in the price of crude was posted in the Louisiana fields. The only increase noted in Texas was a 50 cents raise at Sour Lake, bringing the price there to $2.50, to conform to the level of quotations in force at other coastal fields. Fuel oil is scarce and little is being offered. Recent price quotations are as follows: buyers' cars, $2.50 to $2.75; sellers' cars, $3.00 to $3.50. Detailed statistics of the petroleum industry in this District for the month of March are presented in the following tables. OIL PRODUCTION (Barrels) March FieldFebruary 2,806,600 North Texas .................................................. 2,672,750 2,562,429 Central West Texas................... ·.·.... ············ 2,873,300 2,023,973 Texas Coastal ................................................ 1,717,145 Increase 133,850 Totals, Texas ................................................ 7,263,195 North Louisiana ............................................ 3,209,899 7,393,002 3,739,022 129,807 529,123 Totals, Eleventh District............................ 1O,473,094 11,132,024 658,930 306,828 Decrease 310,871 DRILLING OPERATIONS FieldCompletions Producers North Texas ...................................................................................... 296 255 Central West Texas..............................··.... ·············......................... 214 178 Texas Coastal .................................................................................. 44 30 Texas Wild Cats.................................. ·.··············.............................. 29 10 Failures 41 36 14 19 Initial Producion 40,260 35,905 32,645 1,390 Totals, Texas .................................................................................... 583 North Louisiana .............................................................................. 73 473 59 110 14 110,200 44,730 March totals, District.. .......................................... ·.............. ·............ 666 February totals, District.. ........................................................ ·...... · 709 532 556 124 153 154,930 252,616 CRUDE OIL PRICES Louisiana (38 gravity and above): Texas : Caddo ..... ,..................................................................................$3.50 Homer ...................................................................................... 3.25 Bull Bayou .............................................................................. 3.15 De Soto .................................................................................... 3.40 All other Texas fields...................... ·.......... ·............ ·............· 3.50 ~~~:~s~:B:a~:i~i~i~~: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : $H~ ever, is the subject of many complaints, and proMINING: Texas coal mines operated at full capa- duction is said to be lagging despite wage advances Coal city throughout the month of March, twelve mines in the bituminous fields having an estimated output of 50.000 tons for the month, while the lignite output, according to the figures of thirty mines, was approximately 69,000 tons. The demand for coal is exceptionally strong as a result of an unusually early buying movement now in progress. Mines were well supplied with labor during the past month. and bonuses for increased output. Prices of both raw materials and finished products have remained practically unchanged during the past month. The trade demand is quiet, and but very little new business is expected to be booked before the latter part of May. TRADE AND TRANSPORTATION: Net sales for March, 1920, in the Wholesale principal lines of wholesale trade Trade disclosed substantially augmented toMANUFACTURING: tals by contrast with transactions for the corresTextiles Manufacturers of osnaburgs, ducks, drills and cotton mattresses report that their plants are operating at full capacity. Most of these mills have sold their output up to September. The labor supply is fairly satisfactory as to quantity just now, and no shortage is anticipated until the harvest season. The quality of help, how- ponding month last year, according to reports at hand. Gains ranged from 20% for millinery to 160 % for farm implements. A comparison of March sales with those of the shorter month of February, 1920, reveals increases commensurate with the extra number of days in March, except in the millinery line, which showed a decrease for March, and dry goods and automobile supplies, which recorded heavy increases over sales for the preceding month. Wholesalers in furniture and dry goods reported an average injcrease of 40% in prices for March, 1920, as contrasted with prices of a year ago. Dealers in furniture and automobile supplies also reported sharp price advances over quotations for the month of February, 1920. In other lines prices, while showing a slight upward trend, held closely to the general February levels, and dealers report a more pronounced attitude of price resistance on the part of retail trade. It will be seen from the appended table of trade statistics that wholesale deliveries, generally speaking, kept well up with sales during the month, and also that considerably heavier stocks are on the shelves now than were carried a year ago. These facts would seem to denote an improveemnt in both the interstate and intrastate movement of merchandise as compared with the situation that obtained a year ago. MARCH, 1920, WHOLESALE TRADE, COMPARED WITH FEBRUARY, Compared with Sales Inc. 4% Groceries ............................................................................................Feb. 1920 Mch. 1919 Inc. 60% Furniture .......................................................................................... Feb. 1920 Inc. 11% Mch. 1919 Inc. 31 % Millinery ............................................................................................Feb. 1920 Dec. 100/0 Inc. 20% Mch. 1919 Auto Supplies .................................................................................. Feb. 1920 Inc. 68% Mch. 1919 Inc. 31% Drugs ..................................................................................................Feb. 1920 Inc. 2% Mch. 1919 Inc. 84% Dry Goods ........................................................................................ Feb. 1920 Inc. 56% Mch. 1919 Inc. 86% Hardware .......................................................................................... Feb. 1920 Inc. 17% Mch. 1919 Inc. 58% Farm Implements ............................................................................ Feb. 1920 Inc. 11 % Mch. 1919 Inc. 160% Retail Trade All lines of retail trade, with the exception of hardware, enjoyed a substantially increased business during March, both as compared with the preceding month and the corresponding period last year, according to replies received to our questionnaires. The stimulus of the Easter season is reflected in the augmented sales of clothing, shoes and dry goods, while the heavy gain recorded in the furniture trade attests the demand resulting from the present building campaign. Price statistics furnished by reporting firms fail to show any reaction from previous levels, such changes as were reported being in 1920, AND MARCH, 1919. Selling , Price Shipments .................... Inc. 2% Inc. 11% Inc. 61 % Inc. 12% Inc. 4% Inc. 40% Inc. 19% .................... .................... Inc. 15% .................... Inc. 10% Inc. 68% Inc. 5% Inc. 31% Inc. 1% Inc. 1% Inc. 3% Inc. 77% Inc. 2% Inc. 53% Inc. 41% Inc. 86% Inc. 2% Inc. 100/0 Inc. 11% Inc. 75% .................... .................... Inc. 6% .................... the oposite direction, though in the case of clothing, shoes and food a stationary position was maintained. Stocks on hand indicate a better situation with respect to the wholesale supply and delivery of clothing and shoes, though a depletion is noted in stocks of hardware and furniture. Dealers in clothing reporte.d unfilled stock orders outstanding on March 31st equal to 16% of their total purchases for the calendar year, 1919. Corresponding percentages for other lines were: hardware, 5 % ; dry gods, 6 % ; shoes, 25%; furniture, 3%. Detailed data showing the condition of retail trade in this District in March are presented in the table immediately below. MARCH, 1920, RETAIL TRADE, COMPARED WITH FEBRUARY, 1920, AND MARCH, 1919. Compared Selling with Sales Price Inc. 50% .. .......... .. Clothing ............................................................................................ Feb. 1~20 0 C Mch. 1919 I 1~ 3 ' f.1'}(' 20% Groceries .......................................................................................... Feb. 1920 Inc. 140/0 . '............... Inc. 28% .................... Mch. 1919 Hardware ..........................................................................................Feb. 1920 Dec. 8% Inc. 4% Mch. 1919 Inc. 10% Inc. 20% Dry Goods ........................................................................................ Feb. 1920 Inc. 24% Inc. 7% Mch. 1919 Inc. 39% Inc. 23% Shoes .................................................................................................. Feb. 1920 Inc. 500/0 .................... Mch. 1919 Inc. 37% Inc. 17% Inc. 46% Inc. 10% Furniture ..........................................................................................Feb. 1920 Mch. 1919 Inc. 240% Inc. 46% Transportation Indications of an improvement in the car supply were in evidence during the month of March, except in the Western part of the District, where complaints are still being made to the effect that the movement of livestock and farm products is severely hampered by lack of transportation facilities. The nation- Stock at end of month Dec. lh% Inc. 26% Inc. 21% Inc. 290/0 .................... ................... . Inc. 19% Inc. 9% Inc. 2% Inc. 16% Inc. 19% Inc. 72% Dec. 10/0 Inc. 9% Dec. 10% Dec. 18% Stock at End of month Inc. 17% Inc. 31% Dec. 6% Inc. 21% Inc. 12% Dec. 20% Dec. 10% wide switchmen's strike has almost completely arrested the seasonal outbound movement of Eleventh District products as well as the inbound flow of merchandise from the North and East. The after-effects of the strike upon the car supply in this District will still further delay the restoration of normal transportation facilities. FINANCIAL: Federal Reserve On February 28th, 1920, Bank's Position 231 member banks were indebted to the Federal Reserve Bank of Dallas in the form of rediscounts aggregating $13,147,188.64 and collateral notes totaling $35,857,309.30; while on March 31st the number of borrowing banks was 252, an increase of 21, rediscounts had increased to $21,333,988.52 and collateral notes had increased to $36,453,751.43, or a total increase for the month of $8,783,242.01 in loans to member banks. This increase was largely due to the fact that in March the member banks began to submit their customers' 1920 agricultural paper which, under the 6-months maturity limitation, had just become eligible for rediscount with the Federal Reserve Bank. From February 28th to March 31st rediscounts for other Federal Reserve banks decreased from $23,500,000 to $10,000,000 and paper purchased in open m!lrket receded from a total of $1,750,052 to a total of $1,186,210. Member bank reserve deposits on March 31st stood at $60,977,508.43, compared with $64,308,777.26, showing a decrease, due to seasonal conditions, of $3,316,745.39. Federal Reserve Notes outstanding March 3Ist amounted to $81,733,712.00, against $80,280,050.00 on February 28th. Condition of Member Banks in Selected Cities Forty-four banks in the larger cities of the :Oistrict reduced their holdings of United States securities in the month of March to the extent of $7,358,000, but increased their loans secured by Government securities $2,323,000, according to their reports of February 27th and March 26th. During this period their total loans increased $9,073,000, and their net demand deposits on which reserve is computed decreased $463,000. By comparison with their condition figures of March 28, 1919, both their deposits and their loans showed an increase of approximately $100,000 during the past twelve months, as will be seen from the table presented below. CONDITION STATISTICS OF 44 MEMBER BANKS IN SELECTED CITIES. )Mch 26.1920 U. S. Securities owned. ..................................................................................... $ 58,230.000 Reserves with F. R. Bank................................................................................ 26.350.000 Loans secured by U. S. War Obligations.................................................... 9.208.000 All other loans and investments .................................................................... 274,426.000 Net demand deposits ........................................................................................ 254.789.000 Bills payable with Federal Reserve Bank.................................................. 32.628.000 Bank Clearings March clearings of the ten cities listed below exceeded by 14% their clearings for February, 1920, and showed a gain of 67.8 % over the month of March, 1919. Total clearings of the same cities for the Feb. 27.1920 $ 65,586,000 25,542,000 6.885.000 267.676.000 255.252.000 31,774,000 Mch.28.1919 $ 69,209,000 16.615,000 7,071,000 175,871,000 154,888,000 30.598,000 first three months of 1920 surpassed those for the first quarter of 1919 by 45.6%. The decrease in the clearings at Austin was due principally, if not entirely, to a change in the State Depository law which went into effect subsequent to March, 1919. MARCH CLEARINGS. March 1920 Austin ........................................................$ 8.505.314 Beaumont .................................................. 6,467,146 Dallas ........................................................ 178.669.372 El Paso ...................................................... 30.341.352 Fort Worth .............................................. 89,660.051 Galveston .................................................. 32,524.332 Houston .................................................... 123.998.316 Shreveport ................................................ 23.665,796 Waco .......................................................... 15.654.969 Wichita Falls .......................................... 21,655.917 Total.. .................................................. $531,142.565 (.) Decrease. Discount and Interest Rates 1919 $ 64.703.341 5.939,127 104,819,910 24,545.387 58,536.029 20.345,000 62,516,284 11.271.641 9.832,527 12.052.080 $316,328.326 Discount rates in six of the principal cities of the District during the month of March showed only slight variations as compared with February rates, according to the reports of the larger banks. Rates on customers' paper remained steady at 6lh% to 7%, while those on open mar- Increase 86.9%* 8.9% 70.5% 23.6% 53.2% 59.9% 98.30/0 109.9% 59.2% 80.1% 67.8% First Quarter 1920 1919 $ 24,383.325 $123.224.106 20,815,230 18,359,137 537.478,012 321.467.487 89,134.320 67.787,705 263,752.109 196.239,451 97,295.632 63,728,252 364,969.350 195.292.324. 35,306,430 70.488,467 47,295,962 30.270,873 32.448.813 63.816.608 $1,579,429.015 $1,084.124,578 Increase 80.10/0· 13.4% 67.2% 31.5% 34.4% 52.70/0 86.90/0 99.70/0 56.2% 96.7% 45.60/~ ket paper and interbank loans advanced slightly. Collateral loans payable on demand commanded higher rates at Dallas, Fort Worth and Houston, but took a downward turn at Shreveport and Waco. Four of the six cities reported decreases in the rate on commodity paper. March quotations on all class'es of paper are presented below, including "high," "low" and "customary" rates at each city. MARCH DISCOUNT RATES I Fort Worth Houston C H L L C H Dallas L C Prime Commercial Paper: H Customers' 30 to 90 days.................... 8 6 6V2 Customers' 4 to 6 mos ....................... 8 7 6 Open market 30 to 90 days................ 7 7 7 Open market 4 to 6 mos..................... 7 7 7 Interbank loans ........................................6V2 6 6~ Collateral loans, demand ...................... 8 7' 6 Collateral loans, 3 mos ........................... 8 6 7 Collateral loans, 3 to 6 mos................. 8 6 7 Cattle Loans .............................................. 8 6 8 Loans secured by warehouse reo ceipts, Bs/L, etc. .................................. 8 6 6% Loans secured by Government securities ................................................ 8 4% 6%. 7 7 7 7 \6 8 8 6 6 6)12 Ph 6V2 6 6V2 6 6V2 6V2 7 6 7 8 7 7V2 5V2 6 6 6 6 6 6% 6% 6% 6V2 7% 7 7 6 8 8 San Antonio H L C Shreveport H L C H 8 8 7 7 7 8 8 8 8 7 8 8 8 8 7 8 6 6 6% 6% 6 6 6 6 6 6V2 6V2 6 6 6 6 6V2 6V2 7V2 8 8 6 6 6 6 6 7 7 7 7 7 7 7 7 6V2 7 7V2 7V2 8 Waco L C 8 8 8 6 6 6 6 6 7 7 7 7 7 6V2 6 7 7 7V2 6~ 9 6V2 6 6 6 6 6 8 6 7Y2 8 6Y2 6% 8 6 7% 8 6 7% 8 6 7~ 8 6 7 8 6 6 8 6 6 6 6Y2 8 5 7Y2 8 8 8 8 8 8 8 I 7 LABOR: A careful and exhaustive study of the present A recent survey made by the MONTHLY RElabor supply in the Eleventh Federal Reserve Dis- VIEW elicited data from eighty of the leading cottrict shows that this section, though handicapped ton-producing counties of Texas showing the relaby an uneven distribution of labor, is probably tive supply of farm labor in those counties as commore fortunately situated on the whole than other pared with the supply a year ago. This survey desections of the country, and if the proper efforts are veloped the fact that during the past twelve months put forth to shift the surplus of labor from those the heaviest exodus of farm workers has occurred parts of the District that are over-supplied to those in East Texas, the movement being induced, it is that are under-supplied, there is no reason why the believed, by the wages offered in the North LouisDistrict's industries should seriously suffer this year iana oil fields and lumber camps. The South Plains for lack of operatives. The movement of Mexicans and extreme West Texas reported an increase in into Texas has reached such proportions as to cause the estimated supply of farm labor as compared Mexican newspapers and government officials to with the supply of a year ago. This condition is voice -their alarm. Thousands of Mexicans, under in part attributable to the increase in tenant farmthe suspension of immigration restrictions, have ar- ers resulting from the unusually profitable returns rived in San Antonio 'and border points this spring, realized by the West Texas farmers from their crops attracted by reports of high·wages paid on this side last year. North-Central Texas, the Panhandle and of the Rio Grande. Thus the Southwestern part the Gulf Coast, reported losses of from 6% to 10%, of the state now has an adequate labor supply, whil~ the figures of all the reporting counties in though the process of moving it from the towns and the state' indicate an average decrease of 7 % . In cities to the farms where it is needed has not yet the belief that the data developed by our survey, been completely carried out. The Texas Chamber though based upon local estimates, will be of genof Commerce is systematically endeavoring to con- eral interest and value to the readers of the serve and properly distribute this valuable accre- MONTHLY REVIEW, the detailed results of the tion to the state's labor supply. There is unques- investigation are herewith presented, showing the tionably an excessive concentration of labor in estimated percentage of increase or decrease in the many of the Texas oil fields. One North Texas .farm labor supply of each reporting county, based field alone is authoritatively reported to have 3,000 on conditions existing March 31st, 1919, and March to 5,000 idle men at this time. 31st, 1920. A.ngelina ..............................- 2% Atoscosa ..............................- 20% Austin .................................. 5% Baylor .................................. 2% Bee (*) .............................. .. Blanco ..................................-15% Caldwell ..............................-25% Callahan ..............................- 25% Cameron .............................. +25% Camp (* ) ............................ Cherokee .............................. + 10% ·Clay ......................................~100/0 Collin .................................. + 15% Collingsworth .................... + 50/0 Colorado ............................ 5% Crosby ..................................-25% Dallas ..................................- 5% DeWitt ................................ +10% Delta (*) .............................. Ellis ......................................-250/0 (*) No change. + + + Fannin ..................................-10% Fisher .................................. +20% Foard .................................... + 10% Fort Bend ............................-10% Freestone ............................- 20% Garza (*) .......................... .. Gonzales ..............................-20% Gregg ....................................-250/0 Hall ...................................... + 15% Harris ..................................- 50% Hays (*) ............................ .. Henderson (* ) .................. .. Hood (*) .............................. Hopkins ( *) ...................... .. Hunt (*) .......................... .. Jasper (*) ........................ .. Johnson ................................-10% Jones .................................... +20% Knox ....................................-25 0/0 Lavaca ..................................-100/0 Limestone ............................- 15% Live Ook ( <- ) .................. .. Lubbock .............................. +25% McLennan .......................... 2% Madison ..............................- 33% Matagorda ............................-10% Medina ................................-250/0 Mills .................................... 5% Mitchell .............................. +30% Montague ............................-25% Montgomery ......................- 33% Morris ..................................-15 0/0 Motley .................................. + 10% Navarro ( *) ...................... .. Nueces ................................ +30 % Palo Pinto ..........................- 20% Panola ................... :..............-40% Parker ..................................- 5% Rains ....................................- 50% Refugio ................................-30% + + Robertson ........ .. .. ............- 250/0 Rusk ......................................- 150/0 San Patricio ( *) .............. .. San Saba .............................. + 120/0 Smith ....................................-150/0 Titus ......................................-100/0 Tarrant ................................-250/0 Travis (*) .......................... .. Taylor .................................. +200/0 Trinity ..................................-250/0 Tyler ....................................-330/0 Upshur ................................- 150/0 Van Zandt ......................... .+ 4% Walker ................................-250/0 Ward .................................... +100/0 Wichita ..............................-500/0 Williamson .......................... + 100/0 Wise ....................................-100/0 Wood ( *) ........................... . Young ..................................-200/0 SUMMARY Panhandle .......................................................................................................................................................................................................................... -10.460/0 South Plains and Extreme West Texas...................................................................................................................................................................L 11.900/0 Southwest Texas .............................................................................................................................................................................................................. .090/0 North and Central Texas.............................................................................................................................................................................................. - 6.41% East Texas .......................................................................................................................................................................................................................... -10.740/0 South Texas (Gulf Coast} .................................................................................................................................................................................................. 10.460/0 + 70/0 Estimated average decrease for 80 counties................................................................................................................................................................ FAILURES: There were nineteen commercial failures in the Eleventh District during March, involving liabilities totaling $203,445, compared with 17 suspensions representing an indebtedness of $252,971, for the same month last year. It now develops that the heavy casualty record of the month of February, 1920, when defaults in this District involved the unusual sum of $1,830,522, was due to no general increase in business mortalities, but to the fact that a single firm in the list of failed concerns owed obligations amounting to about $1,500,000. BUILDING: Nine cities in the Eleventh District reported a total of 2,313 building permits issued in March, covering structures estimated to cost $5,589,236.00, which compares with the March, 1919, record of 1,826 permits for buildings value'd at $2,918,579.00 or a net increase of 91.5% in the matter of valuations. Only two cities showed new construction values under those of a year ago. In the case of Fort Worth the decrease was due, not to any substantiallet-up in current construction work, but to the fact that that city began its building campaign last year somewhat earlier than the other cities in the District, thus setting its figures for March, 1919, and March, 1920, on a more equalized basis of comparison. Building permits issued in nine cities for the first three months of 1920 represented valuations aggregating $16,728,284, which was $4,183,113, or 33%, in excess of valuations of all permits issued for the entire year of 1919. The . enormously expanded building program now under way is taxing the capacity of the building trades and the available supply of materials, but reports indicate that a fairly satisfactory Fate of progress in current work is being maintained. MARCH BUILDING PERMITS No. 14 93 105 122 175 612 263 340 102 1919 Valuation $ 28,105 91,710 346,225 126,455 1,568,655 35,852 288,415 276,275 156,887 No. 18 87 339 367 325 281 436 219 241 1920 Valuation $ 30,700 58,459 1,754,335 275,070 1,488,640 96,291 776,946 420,965 687,830 Total .................................................................................................... 1,826 $2,918,579 2,313 $5,589,236 Austin .......................................................................................................... Beaumont .................................................................................................... Dallas .......................................................................................................... EI Paso ........................................................................................................ Fort Worth ................................................................................................ Galveston .................................................................................................... Houston ...................................................................................................... San Antonio .............................................................................................. Shreveport .................................................................................................. POST OFFICE RECEIPTS: Postal receipts at eleven cities In the District ~.)t~led- $1,93S,~17 f\)J. the first three mOuths of 1920, which surpassed by 11 % the total of $1,742,254 for thefirst quarter of 1919. In th~ com- Increase or Decrease Inc. 9.2% Dec. 36.20/0 Inc. 406.7% Inc. 117.5% Dec. 5.1 % Inc. 168.60/0 Inc. 169.3% Inc. 52.3% Inc. 338.4% Inc. 91.50/0 parative record for the past three months, Dallas led in the volume of receipts, Fort Worth showed the largest dollar amount of increase over 1919, and Wichita Falls had the greatest percentage of increase. QUARTERLY POSTAL RECEIPTS Austin ................................................................................................................... . Beaumont ........................................................................................................... . Dallas .................................................................................................................... EI Paso ............................................................................................................... . Fort Worth ......................................................................................................... . Galveston ......... .................................................................................................. . Houston ................................................................................................................ San Antonio ....................................................................................................... . Shreveport ............................................................................................................ Waco ..................................................................................................................... . Wichita Falls ..................................................................................................... . First Quarter 1919 $ 67,346 48,389 535,288 103,386 226,188 57,565 272,958 232,720 81,786 67,968 48,660 . First Quarter 1920 S 60,905 43,123 592,497 116,669 286,230 54,297 330,780 221,911 107,027 59,154 66,324 Total ............................................................................................................ .. $1,742,254 $1,938,917 - 9.50/0 -10.80/0 + 10.60/0 +12.80/0 +26.50/0 - 5.60/0 +21.10/0 - 4.60/0 +30.80/0 -12.90/0 +36.30/0 - +11.20/0