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I MONTHLY BUSINESS REVIEW II~
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Volume 14, No.6
This copy is r eleased for publication in morning pnpers-
Dallas, Texas, August 1, 1929
July 29
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Federal Reserve Di8triet
Bank debits to Individnal accounts (at 17 cities) ..... . . . .. .. .... . .. . .. .. .... .. .... . ..... . ........ .. .... . . . . .
Department 8tore 8ales ....... . . . ... . .............................. .. . . .... .. .. . ................... .. . . . .
Reserve bank loan. to member banks at end of month ... . .............. .. ........ . . .... ...... . ...... . .... . .
Jtoocrvc bank ratio at cud of month ... . .. . ..... ... .......... . ................ . . .. .. . .. . .... .. ..... . .... . .
Building permit valuation at larger centers ... . ... . ... . .. .. ..... . .......... . ..... .. .. . . .. . .. .............. .
gft~~E~~~!!~i!~~;.l~~~~i~):
.:.: ::: : ::::::::::::::::: :::::: :::: : ::::: ::::: :::::::::::: :::::::::
Lumber orders at pine mills (per cent of normal production) .... .. . .. . ... ......... ... .... . . .. ... . ........... .
June
M ay
$860.969.000
$925.954 .000
Dec.
7.0%
$ 15,742.520
$ 25.908,S65
Dec.
Inc.
Dec.
Dec.
Dec.
Inc.
30.210
12.S points
24.6%
H .3%
$ 0,14 2.1 38
$
27
710.082
25,422,150
65%
Jnerensc or Decrenso
G1.5%
$ 8,14S.240
50
S 1.084.428
25.301,850
83%
Dee.
Dee.
15.4
67
46 . 0~
34.5
0.5
0
IS points
l!J.'IIII .... 'ltllIll.IIIIII ....... tI ...... II.II.II ...... II ...... II .... III1 .... UIlU .. 111111.11111 ............. 11 ............. , ....... ".1 .. " ... 111 ..... 111 ...... 11,11 ......... ,1111.111'1'1'11.111111111111,.111.11111111111, .. 1.. 1111111'11111111111111 1 &
The remarkable recovery of the wheat market coincident
with the harvesting of one of the district's largest wheat
crops was an outstanding development during the past thirty
days. Throughout the wheat belt there has been a liquidation of indebtedness, a sharp rise in bank deposits, and an
active demand for commercial paper and bankers' acceptances.
The business mortality rate in the Eleventh Federal Reserve District during the past month reflected a marked
improvement. The number of failures was not only substantially smaller than in either the previous month or the
corresponding month last year but was the smallest of any
month in more than nine years. The liabilities of defaulting
firms were considerably lower than a month earlier but
larger than a year ago.
The district as a whole showed a further seasonal decline
in deposits during the past month. The daily average of net
demand and time deposits of member banks declined from
$903,888,000 in May to $869,148,000 in June. The actual
deposits of these banks on July 11, 1928, amounted to $884,,595,000. While Federal Reserve Bank loans to member
banks decreased from $25,908,865 on May 31 to $15,742,529
on June 30, they have increased rapidly since the latter
date and on July 15 stood at $29,127,382. This heavy increase in borrowing at the Federal Reserve Bank was brought
about largely by the demand for credit in connection with
the movement and storage of the large wheat crop, the ordinary agricultural operations, and to meet the withdrawal of
deposits.
The demand for merchandise in both wholesale and retail
channels was generally quiet. Department store sales reflecled a decline of 15 per cent as compared to the previous
month and were 3 per cent less than in June last year. The
distribution of merchandise at wholesale was likewise
smaller than in either the previous month or the corresponding month in 1928. Some lines, however, report that business has improved somewhat since the early part of July.
Construction activity evidenced a further decline, the
valuation of building permits at principal centers being 25
per cent less than in the previous month and 15 per cent
smaller than in June, 1928. The production, shipments, and
new orders for lumber likewi8e showed a heavy decline.
The Department of Agriculture reports that the prospective yield of small grain crops will be substantially above
that of a year ago. While the indicated yield of the corn
crop is considerably smaller than in 1928, it will be sufficient in most instances to take care of the farmers needs during the coming year. Other feed crops likewise promise
satisfactory yields. Weather conditions generally have been
favorable for the growth and cultivation of the cotton crop
and late reports indicate that the crop is now in a good
state of cultivation. It should be borne in mind, however,
that the condition of the crop is very spotty as a large percentage is much later than usual and the stand of the older
cotton was damaged somewhat in ridding the fields of grass
caused by the May rains. While the hot, dry weather
checked the activity of boll weevils over a large portion of
the district, their presence in large numbers, together with
the large percentage of young cotton, renders the crop susceptible to the depredations of this insect. Furthermore, the
persistence of showery weather since the first of July in
South-Central and South Texas has increased weevil activity
to some extent. In other sections of the district rain at this
time would be beneficial to the crop. Due to the absence of
rains during the past month over most of the district's range
territory, the condition of ranges showed a marked decline
but livestock generally held up well.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW .
CROP CONDITIONS
Weather conditions generally during the past month were
very favorable for farm work and crop growth. Farmers
have made rapid progress with the cultivation of row crops
and late reports indicate that fields generally are clean and
crops are in a good state of cultivation.
The harvesting and threshing of small grains have pro·
ceeded under favorable conditions and this work is nearing
completion in practically all sections except N?rthwest '[ex.as
and New Mexico. The Department of Agnculture III Its
J ul y 1 report indicated that the production of all grain crops
in Texas this year will exceed that in 1928. The per acre
yield of wheat in Texas was estimated at 13.5 bushels as
against 11 bushels in 1928 and a total yield for the State at
31,676,000 bushels as against 22,176,000 bushels in the
previous year. The total yield of the Texas oat crop was
estimated at 43,732,000 bushels as compared to 35,751,000
bushels in 1928. The production of barley was estimated at
5,075,00 bush els, whereas, only 3,276,000 bushels was pro·
duced in the previous year. This represents an increase of
four bushels in the per acre yield. The wheat and oat crops
in New Mexico are in fair to good condition with the harvest·
ing of winter wheat well under way.
If
The dry weather during the past month reduced somewhat
the earlier prospects of the corn crop. The Department of
Aariculture
estimated the condition of this crop in Texas as
t:>
67 per cent of normal on July 1 as com'pare~ to 80 p~r cent
a year ago. Although there was a slIght Illcrease III the
acreage this year, the indicated production was placed at
81479000 bushels on July 1 as' compared to an actual pro·
du'ctio~ of 99,162,000 bushels in 1928. The yield is good
in those sections where moisture conditions have been favorable but only fair elsewhere. This crop in New Mexico has
advanced favorably but a rain is needed for the proper
r.naturity of the crop. A portion of the crop in Loui~i.ana is
also suffering from dry weather. The July 1 condltlOn o.f
tame hay in Texas was estimated by the Department of AgrIculture as 82 per cent of normal as compared to 83 per c~nt
a year ago, but due to the increased acreage the prospectIVe
yield was placed at 768,000 tons as compared to a p,roduc.
tion, of 733,000 tons a year ago. The second cut~1I1g of
alfalfa is practically completed in Central New l\~exlco and
the third crop is ripening in the Southern portlOn of the
State.
The generally dry weather which has prevailed in most
sections of the district since the early part of June has en·
abled farmers to make rapid progress with the cultivation
of the cotton crop and late reports are to the effect that
fields generally are clean. A large percentage of the crop,
however is later than usual, and farmers damaged the stand
of muc!; of the early cotton in working out of the grass.
In practically all sections of .t~e district the conditi~n of the
crop is very spotty, the condltlon of some field~ b~mg poor
while others are fair to very good. Reports mdlCate that
weevils are present in large numbers in much of the old cot·
ton belt of the district and while the recent hot weather has
served to check their activity, the lateness of such a large
percentage of the acreage this ~ea~ renders t~e crop. :nore
susceptible to the ravages of tl~IS msect. Whll~ addItIOnal
moisture would be very benefiCIal to the crop 111 most sec·
tions of the district, it might serve to increase ' the activity
of the weevil. Reports also indicate that root rot is becom·
ing prevalent in Central, South·Central and portions of
South Texas. The Department of Agriculture reported that
weevil activity in South Texas has been reduced consider·
ably since mid-June and that the early cotton has bloomed
freely and promises a good yield. Picking and ginning is
becoming general in this section. The Department of Agricu lture estimated that the area of cotton in cultivation on
July 1 was greater in every state attached to the Eleventh
Federal Reserve District than in 1928. The following table
gives the estimated acreage for the current year and the pel"
centage of the 1928 acreage:
Area in Cultivation
July 1. 1929
(Acres )
Arizona ................................................................
226.000
Louis iana .................._.......... ............. ..........
2,216.000
New Mexico .......................... .............................
132,000
Oklahoma ....................... ......................... _ .....
4.685 ,000
'l'exlis ............_ ....... __ ._........_.......................... 18,697,000
P ercenlage ot
1928 Acr eage
112
]08
]07
J 06
102
The condition of the rice crop in Texas was placed at 82
per cent of normal on July 1, as compared to 90 per cent on
that date a year ago. The estimated production was shown
as 5,84,5,000 bushels as compared to 7,308,000 bushels in
1928. Fruit crops in Texas promise a larger yield than a
year ago.
LIVESTOCK
Ranges in many sections of the Eleventh Federal Reserve
District deteriorated during June due to the absence of moisture, and range grass generally had begun to burn. The
rains which have fallen over a large area of the range terri·
tory since the first of July, however, have been very bene·
ficial and in many areas range grasses have begun to green
again. Nevertheless, there are some localities that are urgently in need of moisture and additional rains would be
beneficial over much of the range territory. Late reports
indicate that pastures are drying out rapidly in portions of
New Mexico and while some rain has fallen in Southeastern
Arizona more is needed to revive range grass. Due to the
abundance of pasturage, cattle generally have held up well
and are in a better condition than is usual at this season of
the year. Reports from many sections are to the effect that
cattle are in good flesh. CaLLIe in Southeastern Arizona and
portions of Western New Mexico are in poor to only fair
condition. While sheep and goats have suffered more from
the dry weather than cattle, their condition is ' fair to good.
Calf, lamb and kid crops in most sections are above the
average and the young animals are strong and healthy, The
Department of Agriculture reported that range prices of
cattle and goats showed practically no change during June
but that the prices of sheep declined materially during the
month.
The condition of cattle ranges in Texas on July 1, as reported by the Department of Agriculture, was 87 per cent
of normal as compared to 93 per cent a month earlier and
88 per cent a year ago. The condition of sheep and goat
ranges was 85 per cent of normal as against 94. per cent on
June 1 and 95 per cent on July 1, 1928. The condition of
cattle declined one point during June while sheep and goats
declined four points.
The receipts of cattle, calves, and hogs during June were considerably less than in
either the previous month or the corresponding month a year ago. The receipts of sheep, however,
Movement
and Prices
MONTHL Y BUSINESS REVIEW
showed a gain as compared to both periods.
Despite the smaller receipts, prices on all classes of cattle
showed a decline during June with the downward movement
being especially severe during the last week of the month.
The market recovered somewhat, however, during the first
week in July under the stimulus of unusually light receipts.
The hog market, after remaining generally steady during
June, reflected a substantial advance during the first week of
July. Sheep and lamb prices declined somewhat during
June but showed some recovery early in July.
0· .. '"1111111111'1111111111.11111 ..... 11 .. 111111 .... "1'''....... 11111111 .. 1111111IIIIIUIIIIIIIIIIIIUIIIIIIIIIIIIIIII'1!l
I~::FOR~WOi"iK ~~ai:m i~~! !
::
Sheep.....................
04,575
59,058
G 5,517
62,610
§
IE:;;~;;
9 ...........
:
10 .25
7 . 15
10 .00
7.25
11.00
8. 50
:
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:
GALVESTON STOCK STATEMENT
:.
:
!E5~~:;;;;.,,: J"9:n;347~:'5~ 0' JIU23 1:~ 2:ro~0 1'
: : ':
For eOMlwlse portB .................... . ... . . .
In cornpre88CS and depoIB ....... , . , . . ........ ..
TOlnl.. . .. .. .... .. .. .. .. .. . .. .. .. .
128,290
. . . .·.
166,601
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~~;~~~.:~~~~.~~~;.::~~~;";J:::~~~~.~~'~~~;~~.~
1::. " .. """ ...
1029
12,8H
87,377
Uecoipls ........ .. ....... ....
Exports. . . .... .. . . .. . .. .....
SLockR, JUliO30. . . . . . . .. . ... .
_.:1
Slooker sleers . ... .............. , ... ..... .
Butcbercows....................... ... ..
Stookercows....................... .. ....
§
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!.:~ a~'_ H~OM'."ATI~E~~~IV~~K PRI~r~ Ifr1!
L~~~,.,. . . . ,. . .:. . .,: ,. . . . . "'.:I.t. ....i,!"t. . . ).!..t. ..1
1!I
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
~
G 1,965
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1928
20,613
136,364
m
Augusl 1 to JUlie 30
This SellSon Lasl SeasOIl
2,845,507
2,524,752
2,357,033
1,002,262
234,297
277,427
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IIII.~
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~
SEASON 'S RECE[PTS, EXPORTS, AND STOCKS OF COTTON AT ALL
~
UNIT'D aTATSS PORTa
'"
,
.
"I:: "" J,.. "
This
on Lasl Season
9,324,204
8,837,729
1,829,053
1,404,707
778,959
866,974
3,588 038
3.957,281
1,478,831
1,016,020
30,657
17,593
7,706,438
7,262,575
786,877
874,134
'Ine receipts and exports of cotton throug!_
the ports of Houston and Galveston during
June showed a substantial decline as compared to both the previous month and the same month a
year ago. Stocks on hand at these ports at the end of June
reflected a further seasonal decline and were smaller than on
June 30, 1928. Exports of cotton from all United States
ports during June amounted to 299,136 bales as compared
to 313,000 bales in May and 444,168 bales in June last year.
Exports during the eleven monlhs of the current season,
however, were 8.5 per cent greater than in the correspond.
ing period of the previous season. The domestic consumption of cotton which amounted to 570,281 bales in June
reflected a seasonal decline as compared to the previous
£;111111111111111111'1111111111111"1111111111111111111 .. .,1111111111.1111'11111111111111111111'1'1111111111111'1'11'1""0
month but \vas considerably larger than a year ago.
t~ IIIIIIIIIIIUtlltlllllllt""lIl1l1tflfltlll"'JlUHIIIIIIIIIIIIIIIIIIIIIIIIII"IIIUIIIIIIIIIIII II II II If II II 111111 II
Cotton
Movernents
=.~
:
:
~
~
~
ll.coeiptB ................................ '.' .. .. .. .. ...
Exports: Great Britain .. .... ... . ..... . ....... .. .... "
Franoo.. ........ .. ...... .... . ... ...........
Contineut. .. . . . . . . . . .. . . . . .. . . . . . . . . . . .. . . .
Japan-Chinn ...... .... . .. ... ...... ... ... ...
Mexico.......... .... .. .. ................ .. .
Total foreign porls . .. . . . . . . . . . . . . . . . . ... . . . . .
Slooks al nil Ulllted StaLes portB June 30. . . . . . . . . . . . . . . .
~"'"II"IIIIIIIIIIIIIIIIIIIIIII""II'I'"II"IIII'''''I'III'I''II111111
;:=
:
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SPOT COTTON PRlCES-(Middling BllSis)
New York. .... . .. ............... .... . •. .
~:rr~~I.~~~:::::: : :: ::::::::::::::::::::
_ ~~~!:'I~~':::::::::::::::::::::::::::::::
JUliO, 1929
High
Low
19 .05
18 .30
l~:~
lU~
lU~
lU~
July 15,
1929
a :~
17 .50
l::~
.
19
COT'rON CO~SUMED AND ON HAND
COTTON GnOWING STATES
Cotlon Con.umed .... ... .'...... .... .. . ...... . .. ... .. . .... .. ..... ... .
Collon on ha1ld J 11110 3U:
(a) In consuming cstuhlighrnenla . .. .. .. .. .. . .. . .. . .. .. .. .. . .. .. . .
(b) [0 pllbliesloragennd oornprC88CS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June
1020
431,967
June
1928
302,052
UN[1'ED STATES
August I 10 June 30
This SellSon LMI Season
4,091,833
4,871,118
875,443
1,100,523
June
1929
570,281
June
1028
510,390
Augusl I 10 June 30
This SeIl80n LMI Season
6,552,489
6,394,242
736,958
1,461,742
1,289,294
1,375,728
J ,160,888
1,046,807
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COdTT,<?NStEhEtD. PROt~UCbTIS t
d th
d
The customary ec me . a IS no lCea e owar
e en
of the season was in evidence in the operation of cottonseed oil mills during the month of June. The production of
cottonseed producls, however, were on ~ larger scale than a
Year ab"'o and the amount of cottonseed on hand at the end
I
t 'IeId on tlIe same da te
of J unc was ab out d OU hI e tIe
amoun
in 1928. Slocks of cottonseed oil on hand at the mills deCI ined to 19,002,270 pounds on June 30 as compared to
32,910,985 pounds a month earlier and 29,046,251 pounds
I hu 11 s, an d
a year ago. Wh 1'l e th e s toc ks 0 f ca ke an d mea,
linters were reduced considerably durinbcy the month they
\Vere substantially larger than on June 30, 1928.
~I •••
§S
,II., ••••
,II.,.,.,I •• I ... , •••••• , •• , ••••
I., ••••
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
~
TOlna
United Slatcs
Augusll 10 June 30
Augusll 10 June 30
This Season LMt Season This Season Lasl SeMon
~
§
::
.~
-~
~
§
-
~~
~
~
•
Cottonseed reecil'ed al mills
~
(lons) .................... .
1,705,982
1,516,396
S,052,674
4,561,749 ~.
Collonseed .rushed (tons) . . . . .
1,703,G67
1,542,513
5,007,306
4,620,787
Coltonseedonhand(tons).....
15,109
7,814
63,401
30,266 :
Crlldo oil prodllced (pollnda) ... 506,983,849 463,284,4131,584,793,8611,465,352,226 ::
Cake and meal produced (lonH)
801,150
717,172
2,254,023
2,070,289 ~
Hullsproduoed (Ions).. . ......
460,99 ~
440,508
1,349,n39
1,312,050:
Linlers produced (running
g_
balcs)
354,452
207,367
1,072,555
869,482
St.ocks 0;; hn;,;U~~e so;.... ..
Crud~oil(pounds) .... .. .. .. ..
§ Cai<Cnndmeal(tons)........ ..
§_
96
III "'11'1',.,.1""1""1.,,1""""""""""""1 •• 1 ••••••••••
Hulls (Ions) . ... . , . ..... . .....
Linlers (running boles). . ..... .
~,IIIIIIIJII""fllIlIlIlIllI
~
4,077.202
30,954
37,914
26,652
5,703,767
17,380
18,84 1
21,470
10,002,270
142,014
87,907
101,007
20,046,251
45,241
45,892
59,028
-
~
~
.. I l I I l I l I t I l I I l I l I l I H l l l l l l l l l l l l t l l l l t l t l l l l l l l f l l I . I I I I I I , . , t I 1111111111111111111111111&
MONTHLY BUSINESS REVIEW
4
TEXTILE MILLING
Whil e consumption of cotton and output of cloth at Textile mills in the Eleventh District were less in June than in
May, they showed an increase over a year ago. There were
3,289 bales of cotton consumed as compared to 3,394 bales
in May and 2,973 bales in the corresponding month last
year. Production of cloth was 4,.8 per cent less than in the
previolls month but 1.9 per cent above the output in June,
1928. Orders on hand at the close of the month were larger
than on May 31 and showed a goodly increase over last
year. Stocks held on June 30 reflected a decline as compared
to a month earlier and a year ago.
I,:
'''''''''''''''''''''''''''''''''';;:;;;;';;;;;;~:'~;~~;;;;;;':;;~'''''''''~:;~.''''''1
=
~
Number b. lce consumed . . . . . . . . . . . . .... .. .
Numberspindlce,cLive..
... . ........
Number pounds cloth produced. . . ... . ..
3.289
90,5.1 6
1,44 4.096
94.892
1.416,532
96,51 6
I ,.; 16.843
::
~
0 . , 1 1111 1 11.1'111111111111,.,.,111111111111111111111111111111111111" 1 11111111111111111111111111111111111111111IIIIIIII'@
WHOLESALE TRADE
A furth er seasonal recession in the distribution of merchandise in wholesale channels was in evidence during June.
Sales in all reporting lines were less than in the previous
month and dry goods was the only line to show an increase
over a year ago. The volume of business during the first
half of the year compared favorably with that of the corresponding period o[ 1928. While the decline in business
was fairly general over the district due in part to the uncertainty in the agricultural outlook, reports from some lines
of trade indicate that business is showing some improvement
in July. Collections during June were seasonably slow.
The distribution of dry goods at wholesale during June
showed a furth er seasonal decline of 9.6 per cent as compared to the previous month but exceeded that of the corresponding month a year ago by 1.6 per cent. The hot weather
during June and July has stimulated the demand for summer
goods and some dealers report that business in July has
been improving. Collections reflected a noticeable decline
as compared to the previous month.
The sales of wholesale farm implement firms during June
reflected a fmthel; decline of 21.9 per cent as compared to
RETAIL
The demand for merchandise at retail was quiet during
the past month. Sales of department stores in the larger
centers reflected a seasonal decline of 15.4. per cent as compared to the previous month and were 3.1 per cent less than
in the corresponding month last year. Sales during the first
the previous month and were 16.0 per cent less than in the
corresponding month a year ago. Distribution during the
first six months of the year, however, averaged 21.7 per
cent larger than during the same period of 1928. The falling
off in demand during June was fairly general over the district. Collections reflected a substantial decline as compared
to the previous month. Prices remained generally steady.
The June demand for drugs at wholesale showed a decline
of 11.1 per cent as compared to the previous month. and
was 2.0 per cent less than in the corresponding month last
year. The decline during the current month was fairly general over th e district. Sales during the first six months of
the current year, however, averaged 4.5 per cent as compared
to the same period last year. Collections reflected a substantial decline as compared to the previous month.
The June sales of reporting wholesale grocery firms were
2.3 per cent less than in May and were 1.9 per cent below
those in the corresponding month last year. Business was
fairly good in some section s but slow in others. Reports
indi cate that buying is improving in those sections where
the crop outlook is promising. Collections were reported
to be slow. Prices remained generally steady.
The di stribution of hardware at wholesale during June
refl ected a decline of 2.9 per cent as compared to the previous month and was 2.8 per ce nt less than in the corresponding period last year. Sales during the first half of the current month exceeded those during the same period of 1928
by 0.7 per cent. Some firms reported buying to be generally
slow except on some seasonable items. Prices continued
generall y steady. Collections showed a decline as compared
to the previous month.
t;] 111111111111111111I11111111 1 11 111 1 111I1111111 1111 11111I1111111"1 1 1111111""'1111111 111 1 1111111'1111111111111III.IIIIIII!J
CONDITION OF WHOLESALE TRADE DURI NG JU NE. 1929
Percentage of incroase or decreaso in :
Grooerice ........
Dry Good9 .......
Farm implements.
Hordware . .. .. ..
Drugs . ........ ..
Net Sales
Not Salce
Stocks
Ilatio of CollecJune. 1929
Jan. 1 to dato Jun e. 1929 tions du ring Juno
compared with eompored with compared with to account. and
June
May
Sarno peri od June May notes outsta nding
1928
1029
last yenr
1928 1929
on May ~ I
- I 9 - 2.3
- 1.6
+ 7. 1 - 7. 1
69. 1
+ 1. 6 - 9 .0
- 1. 9
- 11 .3 - 0.0
26.3
- 16. 0 -21. 9
+2 1.7
+ 12.2 + .4
13 .4
- 2.8 - 2. 0
+.7
- 4 .2 + 1.3
42.2 .
- 2. 0 - 11.1
+ 4. 5
+ 1. 0 -2.3
40 .9
~llIlIltllIlllIlIlIlIlIlIlIllIllIllIlllIlllllIllIlllIlIlllIlIlllIlIlllIlllIlIlllI 1111111111111111111111111111111111111110
TRADE
half of 1928 were practically the same as during the same
period of last year. Clearance sales have been in progress
since the first of July and reports indicate that the results
have been generally satisfactory.
Stocks on hand at the end of June were 9.3 per cent less
81'111'11111111'11111111'111111111111111111111111111111111111"1"'111"'111 1111111111111111111'11111111111111111111111111111111111111111111111.111111111111"'11111111111111111111"'111111111111"111111"1111111'1111IIIflllllllllll l lllfllllllllllllll.[!J
':___,::;_
:
T""'i;;:i::?~::~ :~: : : : : : : : : : : : : : ~US:'"~ " D''''~+: ~3':'~4NT ':-ijr ~i'\' "~~'4~to.3~niO ~:ri Tot~Jlstt
il:::
January I to doto comp.red with sarno period last yenr .. .. .. .. .. .. . .... . .. .. .. .. .
Credit Salce ~Percontnge) :
June. 19 9. comp.red with June. 1928 .. ... ...... .... .. ....... .... ....... .. .. ...
June, 1920, oompared with May. 1929. . . . . . . .. . .. . . .. . . .. . . . .. . .. . .. .. . .. . .. . . •
-
2:: 154 ·.~
January lto date oompared with samoperiodlll9tyo~r.".......... .... ..........
+ 5. 5
Stocks (Percentage):
June. 1929. compared with June, 1928 .......... .. ... . ... . .. . ............... ... .
June. 1929, compared wi th May. 1929 ...... .. .. .. .. . .......................... .
- 5. 1
- 10 .5
Stoc1Jt~r~p!~~l~;:~~ver in June. 1928 ............. .. . . .. . .. . .. . .. .. ...•...... . ...
Rate of stock turnover in June, 1929 .. . ....................... . ..... . .......... .
ll.ate of stock turnover January I to June 30, 1928.. ..................... . . " .... .
Hato of stock turnover January I to June 30. 1929 . .. .. ... . ..... . . ..... ... ..•....
Hatio of June collections to accounts receivable outsta nding June I, 1929 ............... .
.23
.24
1.44
1.59
aa. 9
I. 7
- .0
-.1
-
_:1
.2
2:: 198 . 93
= 42·.?1
8.0
9 .6
1. 1
2:: 16 ·. ~
-.7
-
=3 ,~' ·.80
+ 2. 0
+ 3.1
+ 2. 5
-
3 .3
0.0
- 3. 0
- 11.5
- 2 .5
- 12.9
+ .6
- 0 .5
-
.24
.2 1
1. 26
1. 28
32.2
.27
.26
1.00
1. 61
38. 4
.33
.3 1
1.68
1. 80
40 .8
.21
.20
1. 38
1.37
32. 0
u
2 .9
9 .a
.25
.24
1.46
1.52
35 .0
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MONTHL Y BUSINESS REVIEW
Lhan a month earlier and 2.9 per cent less than on June 30,
1928. The rate of stock turnover during the first half of
1929 was 1.52 as compared to 1.4,6 during the corresponding
period a year ago.
Collections reflected a decline during the month. The ratio
of June collections to accounts outstanding on June 1 was
35.0 per cent as compared to 37.1 per cent in May and 36.1
per cent in June, 1928.
FINANCIAL
Debits to individual accounts at banks in principal cities
of the Eleventh District were 7.0 per cent less in June than
in May but reflected a slight increase of 0.1 per cent over
the corresponding month last year. Charges to individual
accounts at banks in these centers aggregated $860,969,000
as compared to $925,9541,000 in the previous month and
$860,303,000 in June ,1928.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousaods of dollars)
June
June Inerease or
1920
1028
Decrease
Abilene .................. . S 9,000 $ 0,653
+ 2.6
10, 104 + .0
Au. tin ................... . 10,217
25,277
Benumont ......... . ...... . 26,818
+ 0. 1
5,523
5,1 55
Corsicana . ... ... .. . ...... .
+ 7.2
212,087
Dallas ... . . ........... ... . 217,138
+ 2.4
35,4 65
EIPaso .... . ........ .. .. .. 38,820
0.5
103,606 + 2.6
Fort Worth . . ........ .. . .. . IOG,U8
34,582 - 15 .0
Galveston .. , .. ........... . 20.072
- 3.0
Houston ........ . .... , , ... . 188,820 194,741
0,313
+ 35. 0
Port Arthur ........ . ...... . 12,675
4,337
3,00a
Roswell .................. .
+ 8.6
05,096 - 2.2
San Antonio . .......... . . .. 03,883
41,400 - 10 .0
Shreveport . . . ............ . 37,286
16,085
1'cxarkana· .. . . .. .... , .... . 16,600
+ 10 .6
12,447
Tueson .. ................ .. 12,690
+ 2.0
15,604
.0
Waco ..... . ..... .. ..... . .. 15,408
- I. .j
26,826
Wichita Falls ...... ... ... .. 26,447
+
_
May Increase or
1020
Deoreaso
S 10,472 - 6 .4
22,OaO - 12.8
27,008
- 2.0
6,603 - 1.4
233,70 1 -7. 1
42,200 - 8.2
106,203
+ .1
20,080
- S. I
217,22 1 - 13. 1
12,517
.5
4,018
+ 7.0
08,032 - 4.8
40,712 - 8 .4
16,670 + .7
1 ~ , 230
- 4.1
10,778 - 7.8
28,275
- G.5
+
'l'otnl ......... $860,069 $860,303 + . 1 $025,054 - 7. 0
"Includes the fi gures of two bnnkB in 'rexnrl<nna, Arlcan."" locatecl in the Eighth
District.
~
§
{!)IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1111 1111111 1111111111111111111111111111111111111111111111IIIIIIm
5
A cceptance
Market
The volume of acceptances executed by accepting hanks in the Eleventh District and
outstanding at the close of the month
amounLed to $5,102,381 on June 30, representing a decline
of $672,734, as compared to May 30 but a gain of $906,462
over the total of a year ago. Acceptances executed against
import and export transactions declined from $2,244,04,5 on
May 31 to $1,877,179 on June 30 and those based on the
domestic shipment and storage of goods were reduced from
$3,53 1,070 to $3,225,202 between the two dates.
Condition of
Member Banks
in Selected
Cities
Investments of banks located in principal
ci ties of the Eleventh District declined furLher in June but loans during the current
month , after declining in May, showed a
moderate increase. Investments in United
States securities declined from $93,525,000 on June 5 to
$86,086,000 on July 3, and. their holdings in other stocks
and honds were reduced from $40,010,000 on the former
date to $39,91 3,000 on the latter date. Loans on securities
amounted to $102,967,000, representing an increase of $4,873,000 during the month but a decline of $2,203,000 as
comp ared to a year ago. All other loans (largely commer·
cial) , standing at $24.0,236,000 on July 3 reflected a slight
gain of $186,000 during the month and exceeded those of
last year hy $13,729,000. Total loans and investments of
these banks amounted to $4,69,181,000 as compared to $4.71,679,000 on June 5 and $4,50,802,000 on July 3, 1928. While
net demand deposits showed a further decline of $2,019,000
during the four-w eek period ending July 3, time deposits
rose $1,14,7,00. Reserves of these banks with the Federal
Reserve Bank in creased $572,000; on the other hand, their
bills pa yahle and rediscounts with this bank declined
$6,518,000.
l¥JIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII'IIIIIUIIIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111111111111111111111'1111111111111111'111111111111111'1111111111111111111111111111III11IIIIIIII111111I111111111111111111111111111 1 11111 1 IIIIIIIIII(!]
:
:i
:
CONDITION STATISTICS OF MEMBER BA NKS IN SEI,ECTED CITIES
_
_
~
\, NuinberofrcportinKhanks.. . ............. ......... ..... ... . ... ................... .. ...... ... .........
2. United Statcs8courities oWlled . .. . . .. .. . .. . .. . .. .... .. . .. . .. . .•. .. . . .. .. . .. . .. . .. . .. .. .. .. .. . .. . .. .. .. .
~: f ~~:lThif!~~~~~i:i~~nd:
:
~ ~: ~ ~ ~:. ~ ~::
~ ~ ~ ~. ~ ~ ~
July 3, 1020
43
$ 86,080,000
:UUd ,COUri;iesO:WII: : ... : : .' .
:' .
... . :::: .. :::' :: ': . :: .• ::. .::: :
7. Nct demnnd deposits. ... .... .. .. . ... .. . ... .. . ..... .. .... ... . .. .. . ... .... . ...... ................... ...
!1!;2:~" 5:~4: ,:8 0 ~0:~
10. Bill, I>aYllblc nnd rcd iscounts with Fcdoral Rescrvc Dank ........ .. . . ........... .. . . ... . ...... . ... . ..... , . . .
32,75 1,000
11,188,000
~: ~::~~~I~"i~I~'FcJc'r~i ii.ise~~c·B a~k·. : :::::::::::::::::::: :: :::::: :::::: :::: :: ::::::: ::::::::::: :::::::: :
.,
u
_::_!
Junc 5, 1020
S 03,525,000
July 3, 1028
44
$ 80,853,000
~
32, 179,000
17,706,000
32,225,000
0,035,000
:
43
~1~48!1:"'0~718~ ~,:'0~000~0
213 8~0I!G':oG6!0 74~IO ':0&w~O 0 0~ :_~§
~'IIUIIIIIIIIIIIIIIIIII'III'IIIIIIIII'IIIIII"llllllllti.1,llllllIfllllllllllllll'I"IIIIIIIIIIIIIIIIIIIIII II"III'1111111111111111111111"11""111111111111111111'1111'11,"11111111111111111111111111'111'1111111111111111111111111111111111'IIIIIIII~
Sa.vings
Savings deposits of banks in the Eleventh cent greater than on the corresponding date last year. There
Deposits
District that operate a savings department were 294,A36 savings accounts carried at 77 of these banks
amounted to $152,813,457 on June 30, as comp ared to 293,927 a month earlier and 269,889 on
which was 1.5 per cent larger than on May 31 and 9.2 per June 30, 1928.
..
~::_"
'1111111111111111111111 .. 1 .. 11,1111111111111111111111111111.1.1111111.1111111111111111111'1111111111111'111"111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIIII. I IIIIIIIIIIII ••• IIIIIIIII II IIIIIIIIIII I IIIIII£;]
SAVINO S DEPOSITS
Number of
Reporting
Dnnks
4"
Denumont
Oi~nn;lvt~s~to"r,ili.:I ~. :. ·.:.:.":"' :':":':':':
~
. :.::...::.... :. :. :.:•. :. :. . :. :.
Houston
~wh!e• eoAv~.~.0.·~.·1.·~.· :'. :.' :. :. :.:. :.' :.' :.:. :. :. .': :,:,:. :.:. :. :.' :'.
:.<.' '.::.' :. '.:
Wichita Fnlls.... .. .... .. ..............
All oth,·rs..............................
Total. .. .. .. ...... ....
~
3
13"
June 30, 1920
Number of
Amount of
DOllositors
Deposits
5,562
2,620,298
Ineroase or
Deorease
+ 5 .1
ttm 2~:m:m !H!~ 2H~:m t:~:g
74 , 4 0~
0, 157,834
3/j,098,040
4
2
38"
4, 150
37,230
1,007,008
21,9 71,870
87
204,.t36
$1;;2,813,457
~:
June 30, 1028
Num ber of
Amount of
Depositors
DCllosits
5,432
2,402, 117
la,8S 1
~t~n
0,OG7
n~~~:g~~
7, 138,60(,
la,650
68,1 80
0,428,100
32,606,794
-
4, 120
33,036
1.072, lli8
18,537,30'1
- IR.5
260,880
UaO,989,077
~~:~~~
9, 0 8~
l~:3~~:~~~
6,56.1,005
2.0
+ 7.7
t+ I~:8.~7
May 31, 1920
Number of
Ameunt of
Depositors
Deposits
5,524
2,518,218
~m~
13,802
74 ,040
~~:m
2i:m:m
9, 133,080
34, 714,001
Jnerease or
Decrcase
+ 4. 1
~:~
:
+.3
+ 1.1
~l:g:~:r~~
7,032,985
1,558,701
21,441,1 45
t:
~
+ 1. 5
+ 18.5
4, 106
36,706
+ 0.2
293,927
5\50,527,053
+ 1. 6
O,O~O
+ a. 1
+ 2.5
'Only 3 banks in Bcaumont, 11 bank' In Houston, 6 banks in San Antonio, 3 bank' in ShrevcllOrt nnd 34 banks in "A ll others" roported the num ber of ,aving, depesitors.
'!:"""""""""""""""""""""''''''''''''''""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """ ""''''''''''''''''''''''''''''''''''''''''''",'"" """"""" " ",m
MONTHL Y BUSINESS REVIEW
6
~1"lltllll'I'III'I"II'IIIII'IIII.tl'I"IIIIII""'I' ',1.,11111"11,1,,1'1,111111.,1111 ••• ,111.1, •• 111111111""1111.,111'111., ••• ,,11 •••• 1'.1,.,1111111"11, ••• 11, ••• , ••• 11 ••••• , •• ,1' •• "
Dallll8
Rates charged customer8 on prime commcrcial paper 811ch as 18 now eligible for
rediscount under the Federal Reserve Act . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . . .. .
Rate charged on loans te other b:mks 8coured by bill8 rooeivnble.. . . . . . . . . . . . . . . . . . . . .
nate on loons secured by prime 8teck exchango or other curront collateral (not including
loans plnced in other marketa through correspondent banks):
1I-6~
5~-6
Ratcchar~b}do~~£~~i~:~~~~~~~r~:~~:~~~~~~~~;~c;~~.:e:~:':: :: :: : :: : :: :: : :
~~
Rate on cattlc loaos .. .. .. .. ...... .... .. .......................... ............ .
11-7
EI Pa80
Fort Worth
6- 8
6
6- 8
6
r:i
11-8
6-8
Houston
6
~i
~7
~
~::.~~ :~~::~;.~~.~~'~.:~~ ~; ::~;~ ;~~~~
" .............
..
..
..
.•
.............
~: _~.
(In thousands of dollars)
Combined Total
Reserve City Bnnks
Country Banks
Net Demand Time Net Demand Time Net Demand
Time
Depoaits Depoaits Deposits
Deposits Deposita
De(108!ts
:_~_
_
E
_
i
:
__§
Jan .• 1929 .... .
Feb., 1929 ... ..
Mar.• 19211.... .
Apr .1929.... .
May, 1929. .. ..
June. 1929.. ...
8 .....
$745.109
733.901
718,066
093,137
673.097
643,008
$225.788
227,359
230.965
231,507
230,791
226.110
$299,004
291,979
292.1 49
287,987
280.284
2UO,317
$132.908
130.680
132,987
135,664
133.018
120.412
$446,105
441,922
425,917
405.1 1i0
392,81 3
382,721
=:_:.
$ 92,880
E
96.67997,078
~
96,44~:
97, 773
96,678
E_
IIIIIIIII ............. I ............. IIIIU.,II.II .... IIII .. 'I ... ,.IIIIII •• 1"IIIIIIIIIIIIUIIIII."I.I.,IIIIIII,,8
Federal Reserve Bank loans to member
the Federal Re· banks, after rising somewhat during the
serve Banle
first week in June, showed an almost steady
decline until the end of the month. Loans
on June 30 amounted to $15,742,529 or $10,166,336 less
than on May 31. The reduction in loans was due in part to
the liquidation obtained by member banks in the wheat and
livestock sections and through the sale and redemption of
Government bonds. After the first of. July, loans rose very
rapidly and on July 15 amounted to $29,127,382, the peak
of the current year. This rapid increase was caused largely
by the heavy demand for credit in connection with the move·
ment and storage of the district's large wheat crop and the
financing of agricultural operations, together with demand
for currency incident to the introduction of small size bills.
There were 187 borrowing banks on June 30 as compared to
180 a month earlier, and J.37 a year ago.
Operations of
Due to a decline in both loans to member banks and open
market purchases, total bills held were reduced from $35,998,211.4,6 on May 31 to $23,24,6,920.27 on June 30, distri.
buted as follows:
Waco
6
5~-6
6- 8
6
ti
7- 8
~i
4- 8
-
gated $63,321,219 as against $65,054~006 in May and $64,090,854, in the corresponding month of 1928.
FAILURES
A decline was shown in the indebtedness of defaulting
firms in the Eleventh District in June as compared to May
and the number of failures was the smallest of any previous
month since May, 1920. There were only 27 failures during
the month with liabilities of $710,082 as compared to 50
defaults in May with indebtedness of $1,084,4,28 a'nd 4,6
insolvencies that owed $539,916 in the corresponding month
last year. A factor of significance is the comparatively low
mortality rate in this district during the first six months of
the current year, both the number of failures and the indebtedness involved being the least of any similar period
since the first half of 1920.
PETROLEUM
A further moderate increase was shown in the production
of crude oil in the Eleventh District in June. Total output
amounted to 25,4,22,150 barrels, which was 120,300 barrels
greater than in May and 4,,290,250 barrels above the output
in the corresponding month last year. Field work, as shown
by the number of completed wells, declined in all areas with
but one exception; however, the search for pay sands was
more successful than in the previous month. Completions
in June numbered 604, of which 315 were producers of oil,
yielding 160,023 barrels of new production as compared to
760 completions in May of which 362 were successful with
an initial flow of 184,54,7 barrels of oil.
The daily average yield of Texas rose from 780788 bar·
rels in the previous month to 811,l4.0 barrels in June increases being shown in all fields except the Texas Co~stal
region. Activity increased further in Gray County of North
!exas, total output of the former area having doubled durmg the past five .weeks. Production in Pecos County, Cen·
tral·West Texas, lllcreased while the yield in Winkler County showed a re~ession. A decline was noted in the output of
Salt Flat field m Southwest Texas from the high level which
T:: ........ II .. IIIIIIIIIIIIIII ........ I ... IIIII.IIIII .. IIIIIIII ...... IIII .... IIIII ...... UI ... "
Com·
pletions
...................... ....................... $23,246,926.27
Federal Reserve notes in actual circulation amounted to
$38,022,010 at the close of the month as compared to $37,365,705 on May 31 and 830,351,54.5 on June 30 last year.
The daily average reserve deposits of member banks aggre-
.. 'IIIIIIIIIII ........ •• ..
m
JUNE DRILLING RESULTS
Member banks' collateral notes secured byUnited States Government obligations ......_ .. _..................................... _....._ ... _........ $ 5.577.250.00
Rediscounts and other loans to member banks __ .................. .... 10,165.279.01
Open market purchases (B3nkers' Accepbnees) ........................... 7.260.579.26
Di"counts for non-member ba nks ... ..... ........ ..... ...... ...... ..............
243,812.00
Total bills held ...... . "
Antonio
.... ,""'11'11.,1111'.,1111111111, ......... 1111111111 ... 11 .... 111111.,111111111111111111,.,,11111,111111"111111111111111111111111111111111111111111IIIIIn 1111I1I11.Jt
Deposits of
A further decline was reflected in the comMember Banles bined daily average of net demand and time
deposits of member banks in the Eleventh
Federal Reserve District in June. The net demand deposits
of these banks declined from a daily average of $673,097,000
in May to $64.3,038,000 in June and that of time deposits
receded from $230,791,000 to $226,110,000. Actual net demand and time deposits of member banks on July 11, 1928,
amounted to $884,601,000.
m_~: _;
SUIl
5~-6
:
~"I""fllllllltllIlIlIl""'IIII"'''I''I''I''''''''''''''fllI'''IIIII''II'IIf1''1
••••• ,111, ••• "1 •• ,""111, •• IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.I@
Prevailing Rates'
JULY orSCOUNT RATES
:
Producers
North Texas .. ...... . . .. . . .
Central West Telna .... .... .
EostTexll8 . . .. . . .. . . .. .. . .
Southwest Tox... . . . . .. . . ..
Texos COll8 tnl. ..... . . . .. . . .
Texas Wild·Cats . . .. ..• .... .
247
169
10
37
00
39
153
09
Total Texas .. .. ... . ... . ... .
North Louisiana . ... ... ... . .
552
303
June total8. district. . . . . . . . .
May totals. distri"t . . . . . . . . .
604
760
52
31
47
a
12
315
302
Gna
W~1I8
13
7
10
3
Initial
Failnres Production
81
83
.. .. :i.
Sa,80U
57.746
1
12
36
34
215
20
166,201
20
54
83
235
315
100.023
184.547
3.822
:
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MONTHL Y BUSINESS REVIEW
was reached in the previous month. The output of oil in
North Louisiana totaled 1,087,950 barrels, representing a
decline of 9,450 barrels in total production but an increase
of 865 barrels in the daily average yield, due to the shorter
month.
7
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§
§
CRUDE OIL PRICES
:
§
~ Texlia Coastal Grade "A" ... ..... .. .... . .... . ..........
§ Nort:n~n:bo~~)~r~~ .~~~~ ~~.d. ~~~t.~ .~~i~~~~~ .(~.2. ~~ ... .
Jul~2J3.
Jul~2~4,
$1.30
$1 .20
. 1. 85
1.76
:
§
~
§
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OIL PRODUCTION
North Texas ... . . . ... . . . ... .. . .. . ..... . .. . . ...• .. .....•...... . •..
Central WC8t Texas . .. . . . .. .. .• . ... . •. ... . •........... .. .... • .. . ..
East Central Texas ...... . . .. . . ... . .. ....... . ......... . ......... . .
Texas Coastal. ..... ... .... . .. . ..... . .. . ... .. . .... . ... .. . .. . .... . .
Southwellt Telas . . ....................................... . .. .. .. .
Total
5,053.050
12,492,750
574,800
3,816,800
2,306,800
TotaITel as ...... . ........ . ....... . .... . ........ .
North Loulalana ..... .... ............ . ..... . .. . ... . ..... .. .... . .. .
24,334,200
1,087,950
Total Diatrlct ... .......... ........ .. .............
25,422,150
:
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Junc
Daily Average
168,435
416,425
19, 160
127,227
70,893
----811 , 140
I ncrcasc or
Total
Ine. 582,650
Dco. 22 1,450
Doc. 10,550
Dec. 232,200
Ino. 11,300
~~:re':'a~D.t~::
Unfilled orders Juno 30 . ................... ..... . . ... . .. .
~t':,~~:~~~~3(rt~o.n..... : : : : : ::: : : : : : : : : : : ::: : : : ::: : : : :: : :: 2~~:m:m ~~~t
Normal.tock. .. .. ....... . .... . . .. ........ . ... . . . ...... .
Shipments below normal produotion. . . . ... .•.. ....... .• . ..
Aotunl production bolow normal . . . . . . . . . . • . . . . . . . . . . . . . . .
Orders below normal produotion . . ... . ...• . .... , . . . . . • . . . .
Stocka belownormnl. ....... . .... ... ..... . ..............
211,062,325 fcet
22,85i,725 foct- 28%
21J, ~55, 84 3 foe~-25 ~o/,
:
E::::.
28,953,875 feet-35"
1 0,523 ,I ~ 1 feet- 50
II.IIIIIII.II. 1I1I11I1'11I1I'11I'1""I1IIII"'~
Lumber Statis tics Compiled by the Southern P ine Association
mllllll .. U .... U .. II .......... U .... IIUllUIlIlI .. IIIII .. IIIIIIIIIIII ..
Deerease
Daily Avcrage
Ino.
24,229
Inc.
6,290
Ino.
278
Dec.
3,386
Inc.
2,94 1
36,265
24,204,450
1,097,400
780,788
35,400
lno. 120, 750
Dec.
0,450
Inc.
I nc.
30,352
865
847,405
25,301,850
81 6, 188
Ino.
Inc.
31,217
120,300
(Oil atatistiC8 compiled by tho Oil Weekly, Houston, Texas.)
"'~:~:~::'::':~:";;~~':;~~';;~;;;7:'
'
'
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'
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:::::: :: :::::::: ::::::::: :::: :::::: ::::::::
:
;: .: :
Daily Avcrage
144 ,206
410,135
18,882
130,613
76,052
••••• ,11.11'.111,." ••• , ., ............ ,.11 ••••• 11111., ••••• • • , •••• , •••• ,., •• , •••• ,1.11 •• 11'11111111111 •• ,111,'1111111111"." •• ,.,11" ••••• 1""""'.,"" ••
LUMBER
Operations of pine mills in the Eleventh Federal Reserve
District were reduced considerably in June. Production of
lumber declined from 93 per cent of normal in May to 75
per cent in the current month and shipments dropped from
85 per cent of normal production to 72 per cent. Orders
during June, which amounted to 65 per cent of normal pro·
r.:::::::
May
Total
4,470,400
12,714,200
585,350
4,049,000
2,385,500
:
'1",.l'I'I"'I"""'I''''IIII'''''''' ~
duction, were the smallest of any previous month in several
years. Stocks on hand on June 30 increased one point to
95 per cent of normal. Unfilled orders for lumber at 40
mills were recorded at 41,14,3,550 feet at the close of June
as compared to 44,,994,,924, feet on the books of 36 establish·
ments a month earlier.
BUILDING
A further decline as compared to the previous month and
the same month last year was reflected in the valuation of
building permits issued at principal cities in the Eleventh
District in June. The valuation of permits issued at these
centers amounted to $6,14,2,138 as against $8,148,240 in May
and $7,203,620 in June last year. As compared to the same
period of 1928, permits issued at all cities during the first
six months of this year were 3.8 per cent smaller in valua.
tion, six centers showing increases and eight reporting
declines.
BUILDI NG PE RMITS
GIIU.III •• ,III •• ,.I.III.,I'III.IU.II •• I1I1I1I1U .... III •••• ,1111 •• IIIIIIIIII.lllI'III.I.IIIIIIIIIII,."II .. II,,"IIIIIII ... IIIIIIIIIIII.1111I1IIIIIU " "'IIIII"IIII"" •• III 1,1"".1, •• """.1,.,.1"""1 •• ,.11 •• ,1'1 •• 1••• ". , •• 1.,I •••••• lIllllllm
CEMENT
While production of Portland cement at Texas mills de· an increase and both were slightly greater than in the corre·
clined in June from the previous month, shipments showed sponding month last year, There were 554,000 barrels of
I::::
"""""""""""""""""""""""""""""""";:~~;;~~:';;;:;:~'i~~:~:~~~~:~~:;;;~;""',';~~:~;~~"":'~:" I: :
Production at Tel Qa milla .... . ........ . ..... . ...... " . , . . .. ...... : • . ...
ShipmentsatTelllBmills...... .. .... .............. .. ....... .... ....... .
Slock.a at end of month at Tel •• mill.. .. .. .. .. .. . .. . .. .. .. .. .. .. .. .. .. .. .
579,000
510,000
573,000
356,000
+ 1.0
+43.3
563,000
535,000
+ 2 .8
- 4 .7
3,236,000
3, 154,000
+ 2.0
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MONTHL Y BUSINESS REVIEW
8
cement produced during June as compared to 655,000 barrels in May and 54'(),000 barrels in June, 1928. Shipments
for the month totaling 579,000 barrels were 2.8 per cent
above those in the previous month and 1.0 per cent larger
than a year ago. Stocks on hand on June 30 were 4.7 per
cent less than a month earlier but exceeded those of last year
by 43.3 per cent. Production during the first half of this
year was 3.9 per cent greater than during the same period
of 1928 and shipments were 2.6 per cent larger.
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(As Compiled by the F'ederal Reserve Board as of July 25. 1929)
Output of manufacturers continued in large volume in
June while mineral production declined. There was a rise
in the general level of commodity prices, reflecting chiefly
an advance in agricultural commodities.
ment stores in June, as in earlier months were larger than
in the same month in ] 928.
PRODUCTION
Wholesale prices according to the Bureau of Labor Statistid Index, advanced from May to June on the average
somewhat less than they had declined during the preceding month. Farm products, particularly grains, cattle,
beef and hides showed marked advances in prices. Prices
of mineral products and their manufactures also averaged
higher in June than in May, reflecting largely increases in
the prices of petroleum and gasoline. Prices of leading imports, rubber, sugar, silk and coffee showed a decline for
the month as a whole. During the first two weeks of July
wheat and corn continued to move sharply upward, while
hides declined slightly in price. Hog prices increased and
prices of rubber and tin, whi ch began to advance in the
middle of June, continued to rise.
Activity of manufacturing establishments continued at a
high rate in June. Output of automobiles and of iron and
steel showed a seasonal decline smaller than is usual from
May to June. Silk mill activity increased and there was a
growth in the daily average production of cement, leather,
and shoes. Production of copper at smelters and refineries,
decreased sharply and output of cotton and wool textiles
was also reduced, although production in all of these industries continued larger than in other recent years. The
volume of factory employment and payrolls in June showed
a small seasonal decline from May but as in earlier months,
was substantially larger than in 1928. Output of mines was
generally smaller in June than in May reflecting declines
in the production of coal, copper and other non-ferrous
metals. Output of petroleum, however, increased to new
high levels. Reports for the first half of July indicate some
further reduction in output of cotton textiles, iron and steel,
lumber, and coal. Volume of construction contracts awarded
decreased further in June and for the first half year awards
were 12 per cent less than in the same period in 1928,
reflecting chiefly a substantial decline in residential building. During the first three weeks of July contracts awarded
were larger than in the same period a year ago.
AGRICULTURE
Department of Agriculture estimates, based on J ul y first
crop conditions report, indicate a wheat crop of 834.,000,000
bushels, about 8 per cent smaller than production last year,
but larger than average production in preceding five years.
The acreage of cotton in cultivation on July first was estimated at 48,457,000 acres, 3 per cent more than a year ago.
DISTRIBUTION
During the month of June freight car loadings were
slightly smaller than in May, as a result of decreases in
loadings of most classes of freight, except grain products
and ores. In comparison with other recent years, however,
loadings continued to show an increase. Sales of depart-
PRICES
BANK CREDIT
During the first half of July the volume of credit extended by member banks in leading cities declined somewhat, following a rapid increase in June. On July 17 loans
and investments of these banks were about $4.00,000,000
above the level at the end of May. The increase reflected
chiefly rapid growth in loans to brokers and dealers in
securities and also some further increase in commercial
loans. The banks holdings of iilvestments continued to decline and were on July 11 about $700,000,000 below the
middle of last year.
The total volume of reserve bank credit outstanding
showed an increase of about $120,000,000 during the four
weeks ending July 17, the increase being in discounts for
member banks. Demand for additional reserve bank credit
arose chiefly out of a considerable increase in the volume
of money in circulation which accompanied the issuance of
the new small size currency. There was also some increase
in reser~e ba~ances of member banks accompanying the
~rowth m theIr loans and consequently in their deposits.
Open market rates on 90-day bankers' acceptances declined
from 5% to 51/ 8 per cent between the latter part of June
and the middle of July, while rutes on prime commercial
paper remained unchanged.
@FedFRASER