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C. C. WALSH. Chairman and Federal Reserve Alrent (Compiled July 15, 1930) % !ume 15, No.6 Dallas, Texas, August 1, 1930 This copy is relensed for pub. lication in morn ing pnpers- July 29 DISTRICT SUMMARY 9 ........ 11 ..................... 11111 ...... 11111 .. 11111 ...... ' ...... 11111 ... '11111111 .... ,111111 .............. 1111 .... ·0 THE SITUATION AT A GLANCE Eleventh Fedoral Roserve Distriet June Bank debita to individual accounts (at 17 D oitlea) . . . . . . . .. . . .. . . . . . . .. . . . . . . . . . . .. . . ,,!~artment .tore sal"" ...... . . . .... . .... . .. . '""erve bank loans to member banks at end of R month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B~rve bank ratio at end of month . . . . . . . . . . Cu"ding permit valuation at larger centers . . . . C~=ero!al falluroo (~u~'?e!).... .. . . . . . . .. .. Oil erClal faIlures (lIabllltloo) . . . . . . . . . . . . . . production (oorrels). . . . . . . . . . . .. . . . . . . . . Lu mber orders at pine milia (per cent of nor· mal produotion) . . . . . . . . . . . . . . . . . . . . . . . . . . Change from May $702,975,000 - 2. az, 16 .7'1. + $ 9,654,305 1.1% 65 . 1% .4 pointa $ 4,771,680 - 16 .7% + 21.6% • a"54,8~26 • • +761.2% 27,426,270 + .5% 74% - 4.0 polnta mlll."I ..... IIIIIII .. II .... IIIIIIIIIIIIIIIIIIIIIIIII ... II .... IIII .. IIIIIII .. IIIII .. 11I1I ... llltlllllI ........ III1II1I1 ,[!J The marked decline in the prices of principal agricultural com:nodities during the pllst month greatly reduced the pro~· pectIve income of the district's farmers and had a deleterI' ous effect upon trade and industry. Sales of department stores in principal cities declined by more than the usual seasonal amount and were substantially smaller than in the corresponding month last year. Although distribution at w~olesale usually reaches a low point during June.' buying thiS year was on an unusually small scale. Retailers are operating on a very cautious basis and consumer buying is apparently being limited largely to actual necessities. Pay· m~nts on accounts generally have been slow. Most of the pnncipal industries of the district are working on part.time schedules and working forces have been reduced with the result that there is a considerable surplus of industrial labor. While the demand for help in outdoor activities has a~sorbed part of the unemployed, a general surplus of labor stIll exists. . Construction activity reflected a further substantial reces· ~Ion during the month. The valuation of building permits !Ssued at principal cities, which was 17 per cent less than In the previous month and 22 per cent below a year ago, Was at the lowest level reached in several years. The produc· tion, shipments, and new orders for lumber showed a sharp decline. While the growth of crops made fair to good pro/?:ress during the past thirty days, there are many portions of the district which are badly in need of moisture. Crops in some sections have already begun to deteriorate and unless rain is obtained within a short time, production of some crops will be materially affected. The harvesting of small grains was carried on under ideal conditions and the outtum was better than was expected, yet the production of all grain crops, except · oats, was smaller than a year ago. The smaller production, together with the low market price has materially curtailed the purchasing power of a considerable percentage of the district's farmers. Although the prospects for feed crops are generally good, the yield, as indicated by the Department of Agriculture's July 1 report, will be smaller than a year ago. While a large percentage of the cotton crop has made good growth and is fruiting well, there are some sections where the plants are suffering from the lack of moisture. The district's ranges deteriorated some. what during June but the condition of livestock was well sustained. Livestock prices declined to a lower level and trading on the ranges is at a standstill. The past month witnessed a further decline in deposits and a slight increase in the demand for credit for agricul. tural and commercial purposes. The daily average of com. bined net demand and time deposits which amounted to $847,04.6,000 in June reflected a decline of $17,665,000 as compared to the previous month and was $22,102,000 smaller than a year ago. It is significant to note, however, that the decline in the deposits this year was smaller than it was in 1929. Federal Reserve Bank loans to member banks fluctuated within narrow limits and on July 15 were only $1,459,. 800 greater than six weeks earlier, and were $17,720,955 less than on the corresponding date a year ago. While the loans on securities of reserve city banks reflected a further sharp decline, commercial loans showed a moderate increase for the first time in seven months, BUSINESS The distribution of merchandise in the wholesale channels of distribution re· flected a further heavy decline in June. While the recession was in part seasonal, it was much more pronounced than is usual at this season and distribution was Wholesale Trade materially smaller than in the corresponding month last year. During the first half of the year, sales in all reporting lines fell short of that in the same period of 1929, the decline ranging from 3.5 per cent for groceries to 31.7 per cent for farm implements. Restricted consumer buying due to crop This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 uncertainties and the low level of prices of agricultural commodities, and cautious policies of retailers have materially reduced the demand at wholesale establishments. Collections we!'e reported to be slow in most lines. Midsummer quietude was evidenced in the wholesale dry goods trade during June. Sales of reporting firms reflected a decline of 19.2 per cent from the previous month, which was more than seasonal, and were 32.1 per cent smaller than in the corresponding month last year. Distribution during the half year averaged 24.. 3 per cent below that for the same period of 1929. Retailers continue to buy very cautiously due to the downward trend in prices of raw materials and the poor consumer demand. Collections were materially smaller than in either the previous month or the corresponding month last year. The slow demand for farm implements was again evident during June. Sales have shown a steady decline since January, the June figure being 6.2 per cent less than in May and 35.3 per cent below those for June last year. Distribution for the first six months of the current year averaged 31.7 per cent less than in the corresponding period of 1929. Prices continued generally steady. Collections were slightly smaller than in the previous month. A further marked decline in the demand for drugs at wholesale was registered during the past month. Sales were not only 11.6 per cent less than in May, but were 13.0 per cent below those in the corresponding month a year ago. Restricted buying was noticeable in all sections of the district. Reports indicate that retailers are holding commitments to a minimum and are buying in small quantities. Collections were smaller than in the previous month. Sales of reporting wholesale grocery firms during June were 1.9 per cent lower than in the previous month and were 8.5 per cent smaller than in June, 1929. Increased buying was noticeable in those sections where prospects for agricultural production are favorable but in most areas a further recession occurred. Prices evidenced a further weakness. The June sales of reporting wholesale hardware firms reflected a further substantial recession, the total being 7.9 per cent less than in May and 15.1 per cent under June, 1929. During the first half of the current year, sales averaged 15.1 per cent smaller than in the corresponding period of the previous year. In some areas buying was on a larger scale than in the previous month. Collections were materially smaller than in the previous month. CONDITION OF WHOLESALE TRADE DURING JUNE. 1030 Percentage of inoreasc or dcorease in: Not Snles Net Sales Stocks Ratio of oollcoJune, 1030 '.... Jan. 1 to date June. 1030 tiona during Juno compared with compared with compared with to accountll and June May 8amc poriod Junc May notes outlltandini 1920 1930 IMt year 1020 1930 on May 31 Groceries ...... .. . - 8.5 - 1.9 - 3.5 -11 .7 - 4.0 65 .5 Dry goods .. . . .... -32 .1 -10 .2 - 24.3 - 27.6 +.6 20.4 F.rm implementa .. -35.3 - 6.2 - 31.7 +24.3 - 4.5 6.6 H.rdware .... .. .. -15 . 1 - 7.0 - 15 . 1 + 7. 2 +10 .5 32.1 Drugs .. .......... -13 .0 -11 .6 -15 .8 - 10 .8 - 4. 6 41.3 Retail Trade A slowing down in the distribution of merchandise at retail in larger centers, which was more pronounced than is usual at this season, was in evidence during June. Sales were 16.7 per cent less than in May and fell 9.2 per cent below those for June last year. Distribution during the first half of the current year reflected a decline of 8.4 per cent as compared to the same period of 1929. . Stocks on hand at the close of June were 7.8 per cent less than a month earlier and were 3.9 per cent smaller than on June 30, 1929. The rate of stock turnover in the first six months of the current year was 1.36 as against 1.44 in the same period last year. Collections showed a substantial decline in June. The ratio of June collections to accounts outstanding on June 1 was 32.7 per cent as compared to 36.5 per cent in May, and 35.0 per cent in June, 1929. [!] 111111111 ................. 11 ....... 11 .... 1111111111111.11111111 .... 11111 .... , .............. ' ........ 111111'.11 ............ 11 .. '1111111111 ................. 1111 ..... 11 ...... 1I .... II ............ II ... IIII ...... IIUU ............................ IIU ..... § Dallas Fort Worth Houston S.n Antonio Others Total Distri.~ - 5.4 -18.2 - 7.6 -18.0 -18.4 -13.8 -13 . 2 -13 .6 - 0.8 -15 .6 -19 .5 - 6.3 + 5.0 -14.0 - 5.0 - 9.2 -16.7 - 8.4 - 1.8 -18.6 .8 -14.7 -21.2 - 7.2 -10 .0 - 10.4 - 4.5 -12 .0 -19.2 - 3.0 +12.3 -17.5 .1 + - 4.6 -17.6 - 2.6 +.5 -10.1 - - - - 5.3 - 7.2 - Commercial failures in the Eleventh Federal Reserve District during June, as compiled by R. G. Dun & Company, reflected a considerable increase. The number of insolvencies increased to 62 as compared to 51 in the previous month and 27 in June, 1929. Due principally to one large failure, the liabilities rose to $8,454,866, as against $981,806 in May .24 . 23 1. 68 1.43 31.1 3.8 6.4 .21 .18 1. 26 1.11 30.7 6.5 6.2 .26 . 26 1. 60 1.52 36.1 7.6 7.3 .32 .20 1. 82 1.80 34.0 3.g 7.8 .17 .23 .19 .22 1.11 1. 44 1.12 1.36 33.2 32 .7 8'"' "' 1111 II II."" II 11 ..................11 II "'tI II II ",,,""'11'"''''''''''''''''''''''''...... ".1111 ............................... 11 ..... '" ............. ,1111""11,1',11111111 .1I11I .. ,.. IIII .. II ..... II.IIIIIII'.tI~' .. IIIIII.. ,IIII.II.. ,.. 1I Commercial Failures ro ~ BUSINESS OF DEPARTMENT STORES Total SnIes (Percentage): June, 1030, compared with June. 1029 . ...... . .. .. .. .... .... .. . .. .... ........ ... June, 1930. eomparcd with M.y, 1030. .. .... .. ..... . . . . . ... . . ... . ... ........ . .. January 1 to daLe, compared with ISame period last year.. .. ...... .. ... ...... .. .. .. Credit Sales (Percentage): June. 1030. compared with June, 1029.... ...... .................... . ...... ..... June, 1930, compared with May, 1930 . . . . ................. .. ....... . .. .. ....... Janu.ry I to date. compared with same poriod last year............... . ........... SLeake (Percentage): June 1030, compared with June, 1929. . . ... .. .. .. .. .. .. .... .. .... .. .. .. . .. .. .. . June: 1030, eompared with May, 1030 .. ... .. ..... .............. .. . .. .... ....... SLeak Turnover (Rate): Rate of stock turnover in June. 1920.. .... .......... .. ........ .. ................ Rate of etock turnovcr in June, 1030.. .... .. .... .. .. .. ................. ..... .... Rate of stock turnover January I to June 30. 1029 . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . Rate of stock turnover January 1 to Juno 30. 19aO .. ...... ... ........ ............ Ratio of June colleotioDs to accounts receivable nnd outat.nding Junc I, 1930.. .. .. .. .. .. - rnU'tlUlIlJllllllltlUIIIU'UllllllllllltlllfllllllllllllllllllllltlIlIIIIlIUII.,1I1IUII.UI'".,IIIIIIIIIIII.U'"I [EJ GJ and $710,082 in the corresponding month last year. There were 346 defaults in the first half of the current year with liabilities of $14,012,956 which compares to 275 insolvencies in the same period of 1929 with a total indebtedness .of $4,500,102. During the current year, there have been more failures among the larger size firms than was the case a year ago. MONTHLY BUSINESS REVIEW 3 AGRICUL TURE Crop Conditions While there are many sections of the district where additional moisture is needed, crops generally made fair to good progress during the past month. Nevertheless, without additional moisture within a short time deterioration in crops is in prospect for many sections. Small grains, aided by favor?bl e weather at the time of maturity and the prevalence of Ideal conditions dUI:ing the harvesting period, turned out better than was expected. Yet the low market prices for small grains, as well as other agricultural commodities, is very discouraging to the farmers. The corn crop in Texas has matured rapidly and with the exception of that portion of the crop affected by dry weather, the yield promises to be good. The Department of Agriculture in its report of July 1 estimated this year's production at 78,336,000 bushels as compared to a yield of 86,~27,000 bushels last year. Reports indicate that the yields In South Texas and portions of Central Texas will be better than the average. In Louisiana, where the dry weather has materially reduced prospects, the condition figure on July 1 Was only 51 per cent of normal as against 74 per cent a year ago, and the Department of Agriculture estimated that the total yield would be approximately one-third less than a year ago on a 10 per cent larger acreage. The DepartInent's estimate for the Oklahoma crop was placed at 67,04.0,000 bushels as compared to 408,320,000 bushels in 1929. ~he crop in the latter' State was materially benefited by tnnely rains. The indicated yield of tame hay in Texas on July 1 was 74.9,000 tons, which represents a slight increase ~ver the 1929 production. On the other hand, the produchon of wild hay was estimated at 212,000 tons, or a decline of 34,,000 tons from the 1929 yield. A lower yield of both tame and wild hay is estimated for New Mexico and LOUisiana. . !he Department of Agriculture in its report of July 1 ~stImated that the cotton acreage this year was smaller than 111 1929 in every State attached to the Eleventh District except New Mexico and in that State the increase was only 1 per cent. In Texas, where there was a decline of 4 per cent, ~he Department stated that the greatest reduction occurred In the Southern portion of the State and it gradually became smaller to the West and North until an increase was hown in the West and Northwest port~ons. T~ere is shown . elow the 1930 acreage and compansons With the 1929 acreage: b State Aoreage 1030 212,000 2,071,000 ~ew Mexioo . . . . ...... . . .. .. .. . ... . . . 133.000 4,076,000 17,500.000 t;~i~r:n~.·. :::::::::::::::::::::::::: T~~~::: : ::::::::::::::::::: : : :: Aoroago Per Ceo' of 1020 03 07 101 02 06 The condition of the cotton crop is somewhat spotted. The ~ar;y cotton has made generally good progress and reports IhdIc~te that it is fruiting satisfactorily in most sections of ~ e dIstrict, but l.ate reports indicate some shedding in South exas. The young cotton has made poor to only fair growth bxcept in those localities where moisture conditions have ~en favorable. The lack of moisture and the extremely ~Igh temperatures recently have retarded plant development I? many areas. Rain is badly needed over the major porgon of Northwest, Northeast, and in scattered sections of entral and Southeast Texas, Southeastern Oklahoma, and portions of Northern Louisiana. The best condition obtains in North, South, and portions of Central Texas where plants have made good growth and are fruiting heavily. In the extreme Southern portion of Texas, picking has become general and good yields are in prospect. The Texas wheat harvest was better than was anticipated a month ago. The Department of Agriculture estimated production at 27,720,000 bushels which was 2,520,000 bushels greater than the June 1 estimate and compares with an actual production of 37,800,000 bushels in 1929. The dry weather during the spring caused a heavy acreage abandonment of winter wheat in New Mexico and reduced the condition of the crop to the point where the July 1 report indicated a production of only 1,328,000 bushels as compared to a production of 4,7;34,,000 bushels in 1929. The yield in Arizona compares favorably with that of a year ago. The Texas oat crop was placed at 53,157,000 bushels, which represents an increase of 6,061,000 bushels over the production last year. The yields in Louisiana and New Mexico are smaller than last year but a larger production is anticipated for Oklahoma. The Texas rice crop has made rapid growth. The condition figure on July 1 was reported as 86 per cent of normal as compared to 82 per cent a year ago, and with the 20 per cent increase in acreage the prospective production was placed at 8,4,05,000 bushels as against an actual yield of 7,524,000 bushels in 1929. The production of potatoes in Texas, Oklahoma, and Louisiana, is considerably heavier than a year ago, but a decrease in' production is indicated for Arizona and New Mexico. The condition of the sweet potato crop in Texas was shown as 68 per cent of normal on July 1 as compared to 75 per cent a year ago and production was estimated at 7,910,000 bushels, which is slightly larger than the actual production in 1929. The Louisiana ,988,000 bushels as compared crop was estimated at only 41 to an actual yield of 7,440,000 bushels in 1929. Livestock While livestock ranges deteriorated somewhat during the past month, conditions are generally favorable in most sections except East and Northwest Texas and New Mexico. The most rapid deterioration has occurred in East Texas and in New Mexico where the deficiency in moisture has retarded growth of range vegetation. In Northwest Texas the sO.il is becoming dry but plenty . of grass is still available for grazing. According to the Department of Agriculture, the condition of cattle ranges for Texas as a whole remained unchanged during June, and sheep and goat ranges rose three points to 88 per cent of normal on July 1. Cattle ranges in Arizona declined two points during the month, but are in considerably better condition than a year ago. In New Mexico the condition figure dropped from 84, per cent of normal on June 1 to 76 per cent on July 1 and on the latter date, was 14 points below a year ago. Livestock generally have held up well and have shown an improvement in Texas. The Department of Agriculture reported that, in the latter State, the condition of cattle gained 1 point during June and that of sheep and goats three points. The condition of cattle and sheep in New Mexico declined one point during the month, and that in Arizona declined two points. Trading in all classes. of livestock is at a standstill in practically all sections of the district and there has been but little contracting for future deliv€ry. The inactivity of range trading is due largely to MONTHL Y BUSINESS REVIEW 4 the extremely low prices being offered for livestock and to the fact thut they are being held in fairly strong hands and that range conditions are such that ranchmen do not feel compelled to dispose of their holdings at the present time. This is particularly true in respect to sheep and lambs, the market for which has become badly demoralized, and the ranges of which are in generally good condition. of June when heavy receipts made their appearance, but when the arrivals showed a sharp reduction in the following weeks, the market recovered some of the loss. ~"I"I""IIII"""II"II"IIIIII"IIIIIIIII"II"" "',1""',1'11",1111, •••• 1'1",1,.,." •• ",1".1 •••• """'1"'11 = FORT WORTH LIVESTOCK RECEIPTS = While the June receipts of cattle and calves at the Fort Worth market were slightly larger than those in May, they were substantially smaller than in June, 1929. The arrivals of hogs and sheep during June reflected a material decline as compared to both the previous month and the correspond. ing month last year. Prices on all classes of cattle at the Fort Worth market receded to lower levels during the past six weeks. Despite the small receipts, supplies appeared to be in e~cess of ~e. mand and offerings were taken only at lower pnces. WhIle ho'" prices declined during June, the market was some str~nger during the second week in July. The sheep and lamb market suffered a severe decline during the first half : : Movements aru1 Prices § ~ (Number) : June 1030 44.303 17.393 17.938 48.022 ..= = Cattle.. .. .. .. ... CalvC6 .... .. .... Hogs.... ...... .. Sheep.... ..... .. E E Juno 1020 63.666 18.540 27.887 64.460 Chau~~~vor Y4- 19.262 - 1.156 - 0.899 - 16.438 : May 1030 41.791 16.455 26.586 54.455 Chango over Month +2.512 + 038 -8.648 - 6.433 ~ : : : § E r~"I"""I""IIIIIIIIIIIII ••• '.rll'IIIIIIIIIIIIII'1 .'111"".'11111111111111111,1.1,,111111,,,,'1"11"'1, •••••• I' •• ,IE! @'.IIIIIIIIII.II •• IIIIIIIIIIIII."lIllfllI"ICIIIIIIUIIUIIUU.,ttllllllll'"II'".1I.1I1I11I1I1I1I .... II' .......... IL.!j E § COMPARATIVE TOP LIVESTOCK PIUCES (Donars per hundred weight) = ~ = = 5 = : = : Beefotcers............ .. .... .. .... .. ..... Juno 1930 $11.00 June 1920 $14 40 May 1930 $11 50 : : : CalvC3.... .. .. ........... .. .... .... ..... Hogs.. .. .... .. .... .. .. . ...... .. ...... .. . 11.75 10.05 14 .50 11 .00 13.00 9.95 Ug § t:1:e: ::::::: ::::: :::::: :::::::: ::::::: ~: E Stocker cows .. .. ... . ..: ..: ... . .::..: ..:::... . .::. .: 15g'.· 3~5g ~t,:~e:"se~~::: : ::: : : : ::: : . ::: § ~ ~~7:.go15 lU~ 14~'.:5~0 1~:gg ~: ~ m ,................................................""""""1"""""""""1",.'•••• 1'1.1.11"1"."" •• 18 ........ FINANCE Borrowings of member banks at the Fed· eral Reserve Bank fluctuated within nar· row limits during the month of June. These loans, which e-tood at $9,452,815 on May 31, showed a gradual expansion during the following week reaching a high point of $10,835,793 on June 6. At the cl~se of the month, loans had again declined to $9,554.,395, a figure only slightly higher than. that a mont? earlier. The borrowings of country banks mcreased unttl about the middle of the month and then declined somewhat due largely to the liquidations o?tained from the wheat crop. The borrowings of reserve CIty banks rose somewhat during the last days of June and the first half of July, largely offsetting the decline in loans to country banks. Total loans on July 15 amounted to $10,912,615 as com· pared to $28,633,570 on the corresponding dale in 1929. At the dose of June there were 211 member banks borrow· ing frolD the Federal Reserve Bank as compared to 193 a month earlier and 187 on June 30, 1929. Due to the decline in the holdings of bankers' acceptances, total bills discounted declined from $1.5,606,368.89 on May 31 to $12,636,391.20 on June 30, distributed as follows: Operations of the Federal Re· serve Bank Member banks' collateral notes secured by United State. Government obligations ._.__.. _. _ ...... _.._...... _ ..._._._.........._. __ .$ 1.073.800.00 Rediscount.. nnd nil other lonns to. member banks __ .. _ " __ "" 8.460.594. 89 _ Open market purchases (Banker.' ncc~'Ptance.) ...... - ..... _. __ ...._. 3.078.1 R7.R7 Discounts for non-member banka __... --. 8,858.50 Total bills held _ ___ .... _ ....... _ . __ ._ ..._ ..__ .... ·.... :...· ..........._.$12.636.891.20 There was a slight increase during the month in the IImount of Federal reserve notes in actual circulation, the total on June 30 being $31,847,500 as compared to $31,414,750 on May 31. The actual circulation of these notes on June 30, 1929, amounted to $38,022,010. The daily aver· age of reserve deposits of member banks during June amounted to $59,938,4.85, which represents a decline of $1,44 8,525 fr0111 the previous month and $3,382,734 from the corresponding month a year ago. Deposits of Continuing the decline which began last Member Banks November, the daily average of net de. mand deposits of member banks in the Eleventh Federal Reserve District fell to $603,020,000 duro ing June. The decline during the month was about equally divided between reserve city banks and country banks. Time deposits of these banks rose from $241,429,000 during May to $244,026,000 during June, and were $17,916,000 larger than the average for the same month a year ago. The daily average of combined net demand and time deposits amount· ed to $847,04,6,000 in June, as against $864.,711,000 in the previous month, and $869,14.8,000 for the corresponding month a year ago. ~1 ........... II .... II ......... II .. "IIIIIII,tllI.II.IlIf .... III .. I ..... II .. III1I ..... It ... 1Il.fI ... III ..... It ........... ~ E E '.:~ • ! June, I July, i Aug .• • Sept.• E Oct.. E Nov. E Dee.. = Jan .• E Mar., Feb., : April. •••• May. June. S i DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thouaands of donars) ~ Combined Tetal Reserve City Banks Country Net demand Time Net demand Time Net demand depoaita deposits dep08ita depoaits depoeita 1029 . ... . . $643.038 $226.110 $260.317 $129.412 $382,721 1020.... .. 640.034 230,834 270.374 138.357 369.760 1929 .. . ... 620.909 230.643 , ~ 60.019 · 137.174 . 369.890 1029. .. . .. 658.520 234.116266.705 136.950 I 391.725 1929 . . ... . 674.587 ' 225.673 282.630 . I 134.108 391.957 1929 .... .. 668.818 222.773 281.600 - 132.235 387209 1029 . .. . .. 663.839 220.111 279,611 J31.879 384:228 1030. ..... 659.110 225.469 270.051 ~31.152 388.159 1080 .... . . 655.119 232.758 268.107 . 136.111 -386.922 1930. .. . . . 639.586 229.358 269.635 132.932 360.051 1030 . ... .. 630.029 237.274 271.647 138.980 358382 1980. . . . .. 623.282 241.429 269.958 142.181 353'324 1080... . .. 603.020 244.026 260.854 143.753 342;166 m t Bania! Time deposita $ 96.608 92.477 93.469 07.166 91475 90'538 88:232 94.317 § § :§ •• =:. : : : : : 96.647~•: :•__ 96.426 98294 09'248 100;273 tl • It ."I.,III.ItIt.UIt .. ltllllll.IIIIItIl"lIlIltltl1l1llltllltlllllltltllll".'.11I'I I """"IIII"'III".",.tllllm Condition of Member Ba·nks in Selected Cities F~r the third consecutive month, the loan9 of member banks in selected ·cities showed a substanti al decline durinO' June. It is signifi cant to note, howev~r, that "all other" loans (largely commercial), after showing a decline during each month since November, 1929, turned upward during June and on July 9 stood at $230,. 413,000, which was $3,384·,000 larger than on June 4 but were still $12,:199,000 less than on the corresponding d~te a year ago. During the five-week period, loans on securities reflected a further decline of $14,,988,000 and on July 9 were $6,259,000 less than a year ago. The investlllents of these banks in United States securities showed practically no change during the five·week period, but investments in other stocks and bonds increased $3,4.96,000. Their net demand deposits on July 9 totaled $276,242,000, which waS MONTHL Y BUSINESS REVIEW Debits to Individual Accounts 89,139,000 less than five weeks earlier and $5,479,000 below those on the corresponding date a year ago. Time deposits reflected a slight decline of $821,000 during the period, but ~ere still 89,84,6,000 greaLer than a year ago. The borrow· lngs of these banks at the Federal Reserve Bank amounted Lo $2,14,7,000 on July 9 as compared to $1,359,000 on June 4" and $15,028,000 on July 10, 1929. f:_' There was a further reduction during June of $22,867,000 from the previous month in the volume of debits to individual accounts at banks in principal cities in this district. The aggregate of $792,975,000 represents declines of 2.8 and 7.9 per cent, respectively, from the preceding month and the same month last year. Four cities this month showed increases over both the previous month and the same month last year, as against only one in May. .""~.~~:~~:~~.~~~~:.~~~~:":~.::::::.:.~'~~'~";~.~:~.~.~~~:"~;~:'~~'''''8 I : t ro JfJ~09, United Stntca seourities owned. . . . . . . . . . . . . LoAlI other stocks, bonds, and seourities owned. J~~a04, JW2~0, '64,067 47,407 , 64,682 43,911 S 83,432 39,727 ~: : !o~t~~~~~: :: : .::. .::. .::. .::. .: .: ::. .: .::. .: .::. .:::::. 320,178 ~ Allan. on socurities . ... ~~g:~ra ~rt demand deposits . . . . . . . . . . . . . . . . . . . . . 276,242 n:: o depOSits.. ... ..... ...... . .. .... .. ... erve with Federal Reserve Bank. . . . . . .. Bills payable and redisoounts witb Fedsral il<lServe Bank.. .. . . .. .. . .. . .. ........ . . 151,305 32,855 2,147 'j : :m .: "1~~:m J m . 340,782 J ;285,381 , 152,126 . ~ ~2,774 : I1 1,350 11111111111111111111",11111111111111111111111111111111111111111111'.11111'11'1111111111111111111111111111111111,.11'00 IA",~. (In thousands of dollars) _ p47,836 1281,721 'Ij '141,459 Austin ..... . ... . 18,521 10,217 - 3. 6 ~~~i~:un;:: : .. : :: ~0,183 2~:~~~ 2~:m !Id Roewell.. ....... 4,598 4,337 + 6.0 San Antontio .. .. . Sh rovepor .. .. .. 3888'613005 , 3937'288846 , 15,028 :: The seventh consecutive monthly decline was registered during June in the volume of acceptances executed by accepting banks in the Eleventh Federal Reserve District and outstanding at the end of the month. While this decline was seasonal in character, it was much more pronounced this year than it was a year ago. Acceptances outstanding totaled 82,353,451 on June 30, as compared to $2,869,638 on May 31, and $5,102,381 on June 30 last year. Acceptances of these banks executed against import and export transactions declined from $1,683,938 on May 31 to $1,188,100 on June 30, and those based on the domestic shipment and storage of goods decreased from $1,185,700 to $1,165,351 during the same period. Acceptance Market 21,340 -13 .2 2~:~t~! ~: ~ I~i~ :~m:~1 ~:I! ~~ffi ~t! 1I 8'.111111111111111111111111111.,1111111111111,.1 •• 11111111.111111111111'111,,11"1111111'11111.1111.111".1.1 •• 1111111118 ~_. U".I"'.I'.It"""" . ~;: (~:~~~.~~;w~:~:oo ~~~ -:::::=: -+ 30 . ~ -22:3 4,592 + 89,050 30,976 - i:; ~ I_ .1 1.7 3.4 ~~@ ,,!~~ . !~ ~ !! n~~ !'!! 1 :. E ! 1::_ Distl~~r.oludes tho 6gur08 of two hanks in Texarkana, Arkan/llll!, located in tbo Eighth &""'~II""""'I'IIIIIII""IIII"II~"""I"IIIII'!'tlllltllltllllllllll":'lllllllllltllllltllllllllll •• ,11111111'8 the sf.vmgs depOSIts of 87 reporting banks in this district on June 30 aggre. gated $153,683,4.81, being 1.0 per cent larger than a month earlier and 0.9 per cent greater than on the same date last year. There were 305,173 savings depositors reported by 76 of these banks, as against 307,260 on May 31, and 297,975 on June 30, 1929. Savmgs Deposits •• , ••• ,II.,.,II ••••••••• , ••• ,.,., ••• , •••• " ............ ' •• "."1,., ••••••••••••••••••• 11 •••• IIt.I.I ..... II.I •••••• I •• I .... I .... I.I.I.III •• I.I.111111.111.1.1111, ••••• 11111.1.1111.111.111.1111.1 ••• 1•• 1.1.1.111 •• 11 •••• 111 •• 1 ..... 8 SAVINOS DEPOSITS ~:'~in~ Num~~~r ~!~unt Num~~~r ~~unt PerOov~~~~bFnge Numbe~~ ll~Oount p()~~~ttf~n~i~ge 1_:_ S 5 : as . . ... ~IPIlSO .... : : : :: : : ::: : : :: : oD[t Worth . . .. . , . . ... . . ... Banks 4" 4 2 2 S Antonio.. . ....... .... . S~ Wroveport .... .. .. .. . .. .. . W~~I" .. .. .. .. ...... .. .. . ta AllCoth Falla.. .... .. .. .... ers .. .. .... ......... 7" 4" 4 2 41" ~~llumont ......... .. .. .... ~:_ ~~~~~~'. ::..:......:::::::: ::::: . .. .... ort Arthur :~ __ ~ ~ E 8.. lr" 3" 30, of Depositors Depollits 4,754' 2,655,581 68,076 27,298,750 16,341 6,143,352 18,768 7,816,664 g:~~r 4,783 31,677 20,803 10,412 3,747 38,834 3Ngf:m 1,770,265 22,933,570 12,010,064 7,010,773 1,720,991 20,408,301 30, Depositors 4,712 63,856 15,224 17,782 of Deposits '2,620,387 26,028,720 6,173,434 7,802,617 g:gn 4,858 3~:~~~:~~ 1,976,146 20,080 21,211 0,066 3,750 36,636 22,046,604 11,506,508 7,138,606 1,607,608 21,002,581 &ving. Depesits + 1.3 + 4.9 -.5 +.2 =1110:.~0 + 4.0 3 111.' 7 ,! + 7.6 - 2.8 31, of Depositors Depoait4 4,738, 2,638,534 68,617 26,437,297 16,318 6,130,572 18,727 7,551,292 g:m 4,731 8::m:~~~ 2,014,021 31,548 22,506 10,483 3,767 39,288 22,380,111 12,800,015 6,896,481 1,797,578 20,718,847 &vings Deposita +.6 + 3.3 +.1 + 3.5 ~ :;: . -11 : 7 + 2.4 +.2 + 1.8 - 3.8 - 1.5 Total .... .. .. . 87 305,173 $153,683,481 207,975 S152,249,265 +.9 307,260 $152,159,700 + 1.0 "Only 2 banks in Beaumont, 10 bnnks in Houston, 2 banks In Por~ Artbur, 6 banks in San Antonio, 3 banks in Shreveport, and 36 bonks in "All othlll'll" reported tho number of savings depositors, 3 = _ 5 ~ _ 3 : IInlllllll .. IIIIIII .. 1111111 ......... 11111111 .... II.IIIIII ... IIIIIIIII ..... IIIIIIIII .. 11111' .. '"1111111 ... 111111111111 ............ 1 ........ 1.. 11 ................ '1111111111. '"1111111111111111""1 ... " .... 1111111 ...... 111111" ...... 11111 .... 111118 ~ .. •................. '''.. """"''''''"''"''''''"IIII".. ""I1''''"''''.''''''I11'''''''"""'''''"'''''''''.. ''''''"''''... ''""111'''"''''""'' .. ""''111'''''''''''''''''''"''.... '.. '"''''.. "'....".... '".... "'".""'"""""'~ § JULY DISCOUNT RATES Prevailing Rates: ~ S : E : ~ : § : § :: : E :: : § E : : ~ : : ~ 8· ...... ,11111 .... 1................... 1111 ................... 11111111 .... 11111111 .. 11 ....... 111111 .. 111 .. 1111 .... "1111111 .. 11 ...... 1111111111"" .. 111111 .. '111111111111111'1"11111111111111111111111111111.1111111""11111111111111111" ..... ""111"8 MONTHLY BUSINESS REVIEW 6 INDUSTRY The customary decline that is noticeable toward the end of the season was in evidence in the operation of cottonseed oil mills during the mcnth of June. The production of cottonseed products by both Texas and United States mills during the period August 1 to June 30, of the current season, was below that for the corresponding period of the previous season, excepting hulls, which at all United States mills was slightly higher. The amount of cottonseed on hand at all United States mills at the close of June was above that held on the same date in 1929. Stocks of crude oil, cake and meal, and hulls were considerably smaller on June 30 than those held on either May 31 of the current year or June 30, 1929, while stocks of linters showed an increase over those a year ago. Cottonseed Products 1!l11'UIlIt.IIIIIII1I1ItItUlftillt 11 .. 11111.11 .... 111 .. ,11111 ' lit .............. 11111 .... ' 111111111111"1111111111111''''1;1 STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texas United States August 1 to June 30 August 1 to June 30 This Season Last Season This Season Last Season [:"•• ,.1"."., ••• ,1111111, ••• 11111111111111 1,. '., •• ,1111""1"""'1'1"""'11"""""""'11"'1""111IIIII.,IIIII.S §' Cotton.ced received at mills (tons) .. .. .. . .. . .. .... . .. . . 1,261,537 1,705,880 4,900,118 5,053,951 Cottonseed orushed (toas).. . . . 1,271,355 1,701,790 4,052,314 5,006,803 Cottonsoed on hond (tons) .. ... 10,124 16,803 77,295 65,001 Crude oil produced (pounds) .. . P77,100,840 506,983,8401,552,087,8311,585,817,572 Coko nnd meal produced (tons) 508,875 801,159 2,204.166 2,255,802 Hulls produced (tons) . .. . . . ... 341,033 460,003 1,307,146 1,352,747 Linters produced (running balM) .. . . . . . ...... .. .. .... 268,266 3M,45~ 1,024,720 1,072,865 8C~oucdkes ~l' (hpoa~~d~u) ne SO: • . . . .. . .. ... Cake and meal (tons) . . . .. . . . . Hulls (tons) . . . . . . . . . . . . .. . .• Lin\(lrll (running baleo) . .. .. . .. 4,223,358 25,308 10,953 45,001 4,077,202 0954 3 , 37,914 26,652 0,461,395 84127 , 41,884 158,082 19,002,270 142,737 87,486 9559 9, 1 to June 30 of the current season, consumption was 12.4 per cent below that in the corresponding period of the s previous season. The amount of cotton on hand in con, uming establishments on June 30, while less than a month earlier was greater than on the same date of 1929. Cotton The receipts of cotton at the ports of Movements Houston and Galveston during June showed a further decline as compared to the previous month. Exports from Galveston were subt; tantially smaller than in either May this year or June last year. While exports from Houston were larger than in the previous month, they continued smaller than a year ago. Total foreign exports dropped to a lower level, the June figure being 185,053 bales as compared to 208,796 bales in IVlay and 299,136 bales in June last year. Exports during the eleven months of the current season were 17 per cent smaller than in the corresponding period of the previous [eason. COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON ~~ § : : I~a~~~~~ § Juno 1030 :iri: :::::::::: ::: ,..J.~:~~~ § § : Juno 1029 . 1~~:~~~ August 1 to June 30 This Season Lust Season ~:~~HiI ~:n~:~ti l!J""'IIIIIIIIIIIIIIIIIIIIUlllllllfllllllllllllllllllllllllllllllllltllltll111111111111111111111111"111111111111111. : : ' I g Gl l.!t '111t1l 111l1l1l1l1l1111l1l1l1l111l1l11111111l1l1l1l1l111111111111111111111t1l11l1I1111111111111t111UIIIIIIIIIIIIIIIIIL:J i m,IIlIlIl .. IIII ........ III1 ... I ............... III ........ IIIIIIII ..... II ............ I ... 11 .. 111'" ... 1... 11111 .... 1... 1 8 As reflected in cotton consumption and production of cloth, activities at textile mills in the Eleventh District continued downward during June, as compared with the previous month and the same month last year. There were 2,236 bales of raw cotton consumed in June as compared to 2,459 bales in May and 3,414 bales in June last year. The output of cloth was 8.7 per cent smaller than in the previous month and 31.1 per cent below the production in the same month of 1929. Orders on hand on June 30 were less than those of either previous date, while stocks continued to accumulate. Prices of raw cotton continued downward during the month. Consumption of cotton at all United States mills during June also reflected a further decline. For the period August Textile Milling , I: ~~~~i.,~:N:ALV:~TOCK~ATE:ii J"~tm I:.~ For other foroign ports . . ... ... ................ . . . . .. . . For COQ8twisc porte . .. . .. . . .... ... . .. .. .. • . ... .. . . ... . In comprcsses and depots . . . . , . . . .. . . . . .. ... . . . . . .. . . . . 184,113 07,500 Total. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 206,313 128,200 . ~ ' !lIIIlIIlIIlIIIlIIIlIIlIIIIlII1III1IIII1I1IIII1I •• I'" III 1I .... lilt lilt 1111I11 It III I It 1111 1111 I III 11111111 11'111111111 11 ~ I!J [3 11111 .... 11111111111111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlIlIlIlllClIlll'1;t I E 1 : _ : : Receipts . . . . . . . . . .. . . . .. . . .. Exports . . . .. , . . . . . . . . . . . . . . . Stocks, Juno 30. . . .. . . . . . . . . . TH~~~~~ THE PORT OF HOUSTON 1 June COTTON MOVEMENTS June E 77,197 87,377 ~0;'~94 August 1 to June 30 11°:'~41 T:,i:2~~n L~;4~~n 1,908,512 500,073 2,357,033 234,207 • :1 : mIIIIIIIIIIIIIIII.,.IIIII.IIII.IIIIII.111111111 1 111111111 1 111111 ' 111111 1 1111111 1 11111111111111 1 11111111111 IIIIIIIIJIJI~ .. SIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111 ••• 111111111 II"III"II~ I":"IU ........ I .. UIIIIII .. IIIIII .. IItIlI ....... IIII1 ... UU ........ III .... II ... UI ... II .... 11 ... 11111111111111.11111111.118 ~ ~ 1 . § : : ~ TEXTILE MILLING STATISTICS-TEXAS Number balos consumed .. . . . . . .. .. . ...... . Number spindles active . . . . . . . . . . .. .•. . . . . Number pounds cloth produced. . . . . . . . . . . . {~~g'236 {9~g'414 ru~~'450 00,668 1,059,357 96,252 1,537,640 91,668 1,160,480 : .1 § : : 01.11111 111 11111111,1 1111., 1' 1,.1 1,1,111,., 11'.1.1"1,",.,11"111111.1.11111.,1.1.1""11'1111 , ,,1'11,,111111 • • lllllll lm 1::::.:: " " " " " " ' ' ' ' ' ' ' ' ' ' ' ' ' ' . . . '=~;'~~~::~:::;~:~=':;:~~':'~':~'~'''''''~ 1930 C06~t~~~~~~~~~r~.: . . . .. ... On hand June 30 inConsuming establishments. Public storage and oompresses........... . . ... United Stat08: Cotton consumed .. . . . . . . . . . On hand June 30 InConsuming Mtahlishmcnts. Public storago and compresses ..... . ... . . . · · ·· 1029 320,043 431,450 This Season Last Season 4,454,705 § UNITED STATES PORr (Bnles) rS- : ~ Receipts .......... . . . . . .. ... .... . .•• .. . .• •. . . ... . .... Exports: United Kingdom. . . . . . . . . . . . . . . . . . . . .•. . . . . . Franoe .... . . .... . ....... . •. . .. :. . .. ... . . ... Italy .. . . .. . . . .. . . .. ... . ... . . ... . . .. . .. . .. ,. Gormany. . . . . ...... . ...... . . .. .. . ... . . . . .. . Other Europe . .. . . . . ... .. . ..•. . .. .•.. ...• .. . Jaran ... . . . . . . . . . . . . . ... . . . . . . . . . . . . ..• . . .. AI other oountrles .... . . . . . . . . . . . . . . . . . . .•. . . Total foreign ports . . . . .. . . . . . . . . . . .• . . .. . . . . Stocks at all United States ports, June 30 .... . . . , . ... ... ~11I1I1t1111'"I1ItIlIIlIIlII'I."tlltlllllllllltllllltl1"""IIIII"III1I11'1I111111 111111'"1111111111111111111111118 6,543,900 1,357,394 1,287,740 3,104,989 1,376,704 SPOT COTTON PRICES-(Middling Basis) (Conts por pound) 1,101,499 5,735,007 Gl'I'II'llllllll.'tllll ••• I •• , ••• I •••• IIIII""I •• I.I ••• It.I ••• I.I.I'I.I •••••••• I •••• I ••• 'II ••• I.II.I.I I II ••• 1•• II.I •• lllm August 1 to Juno 30 This Season Last Season 8,746,660 0,324,204 1,235,375 1,800,766 798,372 705,153 630,537 687,247 1,638,071 1,753,220 782,781 1,000,040 1,004,392 1,277,566 415,847 503,180 6,514,375 7,800,081 1,673,568 786,877 m llllllllllllllltllll'IIIIIIIIIIIIIII.II.IIIII.IIIIII.1"1111111'11111111111.1.11 1.1 11111111.1.1.111.1'1.111.1.1 ••• 1.11.0 875,003 2,728,134 405,181 SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL :: 4,083,124 934,237 E E NowYork. . .... . .. . . ........ . .... . . . . . .. New Orleans . . ... . . .. .... .. . ... . . .. .. .. . . Dallna . . . . . . . . . . . . . . . . . .. . . . . ... . . . . . . . . Houston ... ... . .. . .. . .. ... . . .. . . .. . ...... Galveston .. .. . .. . .. . . . ... . ........ . . . .. . m .. June, 1030 High Low 16 .15 13 .25 15.3S 12 .36 15 .20 12.10 . 15 .25 12.35 15.45 12.50 July 15, 1030 13.20 12 . 60 12.15 12.50 12 .60 II.IIIIIIIII.IIIIII •• II •• IIIIIIII ••• II.IIIII.II.' ••• 11"111,,11.111.111,11'111'1111'.'1,1,,111111111.1111III.IIIIIIIIG] MONTHLY BUSINESS REVIEW Production of crude oil in the Eleventh Federal Reserve District rose from 27, 281,150 barrels during May to 27,426,270 barrels during June, and reflected an increase of 2,004,120 barrels over the ~otal output of June, 1929. Average daily production durmg June amounted to 914,209 barrels, being 34.,172 barrels larger than in the previous month, and 66,804. barrels greater th~n in the same month last year. There was a general dechne in field activity during the month as compared to May, which was shown both by the smaller number of wells completed and by the decrease of 56,454. barrels in the initial flow from new wells. The daily average output of all Texas fields amounted to 873,744. barrels in June, representing a gain of 33,628 bar~els over the May average. Two-thirds of this large increase IS to be attributed to North Texas fields. Southwest Texas Petroleum ~'lIlllIlIllIltfllllllllllllllllllllllllllltllllllllllllllllllllll"'1t1l1l11l1l1l1l1l11l1l1l1l1 1I1I1I11I1I1I111I111I.'l;' ~ ~ OIL PRODUCTION-(DarroJa) E I~~~;; 5 E Inoroase or Decrease over :f:1i' Total Distriot ... . .. 27,426,270 1![ ~!~'11~11 914,209 + 145,120 +34,172 7 showed a daily production gain of 9,056 barrels, and the Coastal and East Central sections reported increases of 3,335 and 3,345 barrels, respectively. For the fifth consecutive month, a sizable reduction was shown in the daily yield of the Central West region. The increase of 544 barrels in the daily production of North Louisiana was due principally to further wildcat activity. Lumber Activity in the lumber industry in the Eleventh Federal Reserve District evi· denced a further decline during the latter part of May and the first two weeks in June. Production, which has been at a relatively high level during the greater part of 1930, declined from 94, per cent of normal to 79 per cent during the four-week period ending June 14. Shipments and new orders for lumber declined from 83 and 78 per cent of normal production to 81 and 74 per cent, respectively, during the four weeks ending June 14. As a result of the curtailment in production, stocks on hand at 4/7 reporting mills on June 14 were less than those held at the end of the previ. ous four weeks. Unfilled orders for lumber on the books of 4,7 mills on June 14, amounted to 4,3,722,000 feet as com· pared to 49,451,000 feet on hand at 48 establishments on May 17. The lumber market still continues to be weak and most mills have greatly reduced operating schedules. PINE MILL STATISTICS E (Four-week porlod oDding June 14, 1930) l!J.IIIIU'UIIII.ill1l1l1l1l1ll1lll1ll1ll1ll1l1l1l1ll1ll1l1ll1l1'flllIlIlIlIlllIlIlIlIlI 1I11111111111111111111111111"11~ 9 ..... ~.!: 11 ... 11111111 ... 111111111111111111111111111111111111 .... 111111 ..... 11111111 ...... 111 .. ItU II II II II II 111111'11 UI.l!J 1UN,~~LL:;*FB;~ ~orth Tous . . .... .... .... . ~~rTI Woot Toxas ...... ... 242 I:. ~~~i~!r~~~: ::: ::: :: :: 82~Og~ .: ~ fJ: exas Wild.Cnte ... .... . .. . 112 ~92: :::: 14 116 ,~~:, ! 26,317 ~~ H:ftf : 320 26 41 22 239 33 167,884 6,202 e ~ootalsl ' d!str!o\.. .. .. .. . y , tas, dlstrlot. . . . . . . . . 680 770 345 402 63 63 272 314 173,086 229,540. e " I I I •• IIII'II •• II •• ' ••••••••• " •• , ••••••• ", •••••••• 11111 ••••• 111 ••••• 111111111 ••••••• '.,111 ......... 111,.'1.,IIIIII •• a CRUDE OIL 'IDCES ~ J.l'l,J' J::'::!,. e ll11l :~ ::v~~~~r.~I?o.x.~. ~~~. ~~~~~ .~~~8.i~~. ~~~ .~'.. 1.57 1.85 ~:!. E 1t11l1l1l1111111111111111111.1I11111111111111111111 .... IIIIIIIIIIIIIIII .. IIIIIIIIIII'tlllIlIII.lll1l1ll1ll1ll1lllm (Oil 8tati8tics complied by Tho 011 Wookly, Hou8ton, Toxas.) Unfilled ordors Juno 14.. ............... .... .......... ... 43,722,000 feet Normal produotion. . . . . . .. . . .. . . .. .. .. . . . . . .. . . . . ... .. . 81,348,000 feet Stook8 Juno 14. . . . . . . . . . . . . . .. . . . . .. . . . . .. . .• . . . . ..• ... 300,065,000 feet 15, 772,000 feo1.-19~ Sblpmonte below normal produotlon. . . .. .. . .. .. . . .. .. . . . . Aotual produotion below normal...... . . ......... .. . • ..... 16,026,000 fool.-21 :<9 Ordors below Dormal produotion .. . . , . . .. .. .. . . . . . . . . . . . . . 21,426,000 fool.-26io Building mlll.III.IIIIII.I ••• 'III ••• IIIIIIIII.IIIIII •• II •• I •• I •••• 1111 •• 111111'111.1' ••••• ' •• 11111, •• ,111,.1'11 •• 111111111111 •• , m ~.'1lII oonatal grado .. An . . ............. . ........... . . . ~~les;:,~~~:: :::: :: :: :: :: :: ::::: :::: :: ::: :: :: :::::::: ::: ~:~~:~ ~::1 (Lumber ntati8tica oompiled by tho Southern Pino Asaoclation, Now OrlSl)nB, La.) 600 80 I:. 47 64,422,000 feet ml •• IIIIIIIII •••••• II •••••••••••• I •••••••••••••• II.II."1.,1111111111111111""11111'111'11111.1.,111,.11111.1111111111 1 [:] N h . Total TOXIIs ..... . ort Louisiana ... . ........ =. Number of reporting mills...... .... ..... .......... ..... . Produotion. . ..... .. . ............... . ............... .. . Construction activity in the Eleventh District continued to decline during June, as shown by the number and valuation of building permits issued at principal cities. This month's total valuation amounted to $4,771,689, which represents a decrease of 16.7 per' cent from May, and a decline of 22.3 per cent from June last year. However, the cities of Dallas, Port Arthur, and Shreveport reporte!1' substantial increases over both the previous month and the same month a year ago. The valuation of permits issued during the first half of the year was 36.2 per cent smaller than the aggregate for the same period in 1929. ~1"11I1"1t"1"1""IIII""IfIlI"lItlllllllllllll""""""II"1I1111 1 11111111111111 1111 .... 1111 .... '111.11111111 .... 1.... 1111111111 .. 11111 .. 1111' .. 11 .. '111111111 ............... UII .. IIIIIIIII ... IU ..... IIII .... UU .... UIl.IlIt1 ...............[!J . : ~ &........ BUILDING PERMITS ~ . ... 111 .... 11111 ...... 111 ........................... 1111111 ....... 11111 ......... 1111 ............. "' .. 11 .... 1111111 .. 1111 .... "' .. '11111 .. 111111111' .. ""111111111111., .... 111111 .. 11111111111111111111111111 .... 11111111 .. '111.111 ... 11 ....... E .,8 MONTHLY BUSINESS REVIEW In comparison with the previous month there was a further decline of 11.4 per cent in the amount of portland cement produced at Texas mills dur ing June. The month's outeut of 558,000 barrels, however, was slightly larger than in June, 1929. Shipments rose to 706,000 barrels, showing an increase of 13.9 per cent over the preceding month, and a gain of 21.9 per cent over Cement the same month last year. While stocks were reduced 17.7 per cent during June, they were still 34.9 per cent larger than on June 30 a year ago. Production and shipments of cement in Texas from January through Jun~ showed ~ncreas~s of 6.8 per cent and 10.2 per cent, respectIvely, oveI the fiIst half of 1929. I!l II lIl tl lllIlIlIllIlllIlIllIlIlIlIlIlIlIll .. '"IIIIII.II .. IIIIIIII ... lIlllI ol(l1l1l1l1l11l11111111111 ......................... ' .111111 ............ 1111111111 .. 11111111111111111 1I11111111111111111f11111 .. " ' .. III .. I .. ,II .. I .. IIIIIII""' .... lIfI ....... ~ PRODUCTION. smPMENTs, AND IlTOCKS OF PORTLAND CEMENT ~ (In thousands of barrels) ~ June 1930 Number 658 Produotion at Texll8 mills . . . .. . . . . . . . . .. .... •.. . . ... .. . . .... . . . . . . . . . . .. . . • . . ... • . . .. , .. ... . ... . . . . ... . .. . ~~~~~e~~e~d~f ~;:::':~IT~~a;.·.;,jI~:: : : : : : : : ·.: : ·. ::: : ::: : : ·. ::: : : : :·. :::::' :::'::. :. .:''::'.:'.:::' ::::::::::: . . .. . WIIIlJlIUIUIIlIl ........ IIIII ..... IIt .. II1 ..... III ........ . .......... IIIII .......... II .. .............. It ........ IIIII ....... 706 688 Percentage Change Over Month Year - 11.4 + .7 +13.9 +21.9 - 17 . 7 +34.9 January through June 30 Percentage Change Number Over Year 3,442 + 6.8 3,566 +10 .2 ~ i : ~ I i ~~ .. III .. IIIU.I .. IIIIIIII .. II.1I1I1I11I1I1I1I11I 1 1111 1111111 ........ 11111111111111111 ...... 1111 ........................... ,8 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Resel'Ve Board as of July 28, 1930) Industrial production decreased in June by more than the usual seasonal amount and factory employment and payrolls declined to new low levels. The volume of building contracts awarded was large. Prices declined sharply and money rates continued downward. periods of 1928 and 1929. Preliminary reports indicate that the decline in department store sales from a year ago was of larger proportions in June than in any previous month this year_ INDUSTRIAL PRODUCTION AND EMPLOYMENT Commodity prices declined more rapidly in June than in any other recent month and the index of the Bureau of Labor Statistics at 86.8 per cent of the 1926 average was about 10 per cent below the level of a year ago. Prices of many important agricultural commodities and their manufactures declined further and those of certain leading imported raw products, silk, rubber, and coffee, reached new low levels. There were also further declines in iron, steel and copper. Prices of raw wool, hides, and raw sugar increased slightly during June. Early in July prices of meats were stronger but there were further declines in many other commodities. In June industrial production showed a further substantial decrease and the Board's index, which is adjusted for ordinary seasonal variations, declined to !he lowest level since last December. Output of steel mgots declined in June and early July more than is usual at this season, while automobile production was sharply cu~tailed to a level considerably below that of the same penod of the past two years. Cotton consumption, a1~ead~ at a low level declined further in June. Output of bItummous coal and ~opper continued in small volume. Wool consumption and shoe production increased slightly and cement output, as in the preceding month was at a high level. Factory employment and payrolls decreased further in June. The number employed at steel plants .and in. the au~o, agricultural implement, and cotton goods mdustnes, .declmed more than is usual at this season, and employment m the woolen goods and lumber industries continued at unusually low levels. The value of building contracts awarded in June, which totaled $600,000,000, according to the F. W. Dodge Corporation, was about thirty per cent more than in May. and the largest since last July. The increase reflected chIefly unusually large awards for natural gas pipe lines and power plants; the volume of contracts for residential building was somewhat smaller than in May. In early July the total volume of contracts was small. Department of Agriculture estimates, based on July 1 conditions, indicate a decrease from last year of about 20,000,000 bushels in the winter wheat crop and a corresponding increase in spring wheat. The corn crop is expected to be about 2,800,000,000 bushels, 7 per cent larger than last year and 6 per cent above the five year average. Area planted to cotton is estimated at 405,815,000 acres, 2.7 per cent less than last year. DISTRIBUTION The volume of freight car loadings in June and early July continued to be substantially below the corresponding WHOLESALE PRICES BANK CREDIT Loans of reporting member banks in leading cities declined somewhat between the middle of June and the middle of July and on July 16 were $60,000,000 smaller than five weeks earlier. Loans on securities decreased by $140,000,000, while "all other" loans increased by $80,000,000. The banks' investments increased further by about $280,000,000 during this period and were in larger volume than at any other time in the past two years. Member bank balances at the reserve banks increased and in the week ending July 19 averaged $60,000,000 more than five weeks earlier and at the same time their borrowings from the Reserve banks declined by nearly $20,000,000, reflecting an increase in the reserve banks' holdings of acceptances and Government securities, a further slight growth in gold stock, and a continued decline in the volume of money in circulation. Money rates in the open market continued to ease and in the middle of July rates on 90-day bankers' acceptances at 1% per cent were at a new low level while rates on commercial paper at 3-3 1 per cent were at the low point of ,4 1924. During July the Reserve bank discount rate was reduced at Boston from 31/2 to 3 per cent and at Philadelphia, Atlanta, and Richmond from 4 to 3% per cent.