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MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal Reserve Agent (Compiled July 15, 1934) = Dallas, Texas, August 1,1934 Volume 19, No.6 = This copy is released for publica tion In morning papers- July 30 DISTRICT SUMMARY daily average of combined net demand and time deposits totaled $712,177,000 in June as compared with $708,920,000 in May, and $582,388,000 in June, 1933. Member bank Eloventh Fodoral Resorvo Distrlot bon-owings at the Federal Reserve Bank continued in small Chango from JUDO volume and reserve deposits were maintained at a high level. May 1934 The loans and investments of member banks in selected Da~t~ d)Obits to individual acoounts (at 17 + 7.4% cities increased substantially between June 13 and July 11. $569,200,000 D~ll~ .... ... ....... .. ar - 16.1% nerfrvom~~t .storo... to ................at. ...... .. sales . ...... ..... The valuation of building permits issued at principal ""nk loans membor banks ond - 24.5% 426,404 ~ m0t;h ............ ..... ............ . . . cities in June declined as compared with May, but the 60.2% - 1.1 points DUilJte ank ratio at ond of month ......... . - 46.8% Co ng permit valuation at larger oonters . . . . $ 1,092,7~~ volume was larger than in any of the preceding nine months. - 5 . 6~% Co;::n'ero!al failures (number) ... .. . .. . . .. .. . . + 74.1 288,900 The total for the month was 47 per cent less than in May Oil IDd'0la! failures (liabilities) ............. . $ .40 34,035,000 -...E!.0 notlon (barrols) .................... . and 37 per cent lower than in June last year. The drouth which had been prevailing for several months A sharp deterioration in the condition of principal crops in the western part of the district became more general in a~d of livestock and their ranges due to the prolonged and June and July and is now affecting to some extent practically ~vldespread drouth was a development of major importance the whole of the district. The situation has been aggravated III the Eleventh Federal Reserve District during the past by the abnormally high temperalures, which have caused ~onth. Despite the drouth, business has b~~n well .sustained. rapid evaporation of moisture and which have partially ill les of department stores in principal CItIes, whIl~ reflect- nullified the effect of rainfall in some sections. According to g a seasonal decline of 16 per cent as compared WIth May, the July 1 report of the Department of Agriculture, pros\vel' So e 2.4 per cent larger than in June, 1933. D' 'b' m pective yields of principal crops are considerably below the Ist1'1 utIOn . b ll1e hnes of wholesale trade declined more than seasonally, average. Feed crops are spotty, being fairly good in some ~t this Was not surprisino- because of the heavy volume .of sections to near failure in others. There ~ill be a shortage Cl':Y business. Sales in mo~t lines continue to show larg~ m- in many are~s unless weather conditions are favorable to ases over the corresponding month last year. CollectIOns the production of fall crops. The cotton crop has withstood ~ellerally are holding up well. While merchants are proce~d the drouth remarkably well, but recent reports indicate that d~g Cautiously in the placement of future orders, reports m- deterioration has set in. Nevertheless, the crop could show clCate the maintenance of a strong undertone of confiden~e. rapid recuperation should heavy rains occur in the near bil~rnercial failures in June were few in nu~ber a~d ~h~ 11a- future. The condition of livestock and their ranges has Hies of defaulting firms were small. DebIts to mdividual declined sharply in nearly all sections, and in many areas aCCOunts at banks in larger cities reflected a contrary t? the situation is very critical. Particularly in the western part seasonal increase of 7 per cent as compared with the prevI- of the district, feed and stock water are scarce. Livestock Oils rnonth and were 21 per cent larger than last year. in substantial numbers are being moved to more favorable areas or sold to the Government. Recent reports indicate . Deposits of member banks after declining seasonally durconsiderable losses in some areas. lIlg the preceding three months, turned upward in June. The THE SITUATION AT A GLANCE BUSINESS rholesale Varying trends were in evidence during 1"ade June in the business of wholesalers operbi . ating in the Eleventh Federal Reserve oc~ttlct. While declines which were larger than se~sonal 1Il urred in the lines of dry goods, drugs, and far~ Impletheilts, the distribution of hardware was well sustamed and ere Was a further non-seasonal increase in the sales of groceries. Total sales in all lines except dry goods continued in substantially larger volume than a year ago, but the increases were with one exception smaller than those reported in May. The undertone of co~fidence whi~h ha~ been visible for a number of months contmued to be m eVIdence during June. Materially larger collections than in May were reported in all lines except drugs and dry goods. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW A larger than seasonal reduction of 18.1 per cent was recorded in the demand for dry goods at wholesale during June, and for the first time in eight months the volume of sales fell below that of the same month a year ago. In this connection it should be recalled that a large contrary to seasonal increase in distribution occurred at this time last year. As is usual at this season, a decrease was reflected in collections during June. For the second consecutive month a non-seasonal gain was witnessed in the sales of reporting wholesale grocery firms during June. Business was 2.4 per cent better than in the previous month and 20.1 per cent above that of June last year, the latter comparison being the most favorable reported since February. Inventories, which were reduced 3.7 per cent between May 31 and June 30, remained 8.6 per cent higher than on the same date a year ago. An increase of 9.5 per cent was reflected in the June volume of collections. While conflicting tendencies in business during June were indicated by reports received from wholesale hardware firms in the Eleventh District, sales nevertheless held well up to the volume of the preceding month, when a non-seasonal expansion was witnessed. Distribution during the month was 34.4. per cent above the scale of a year ago, and for the period from January 1 to June 30 total sales were 56.1 per cent larger than in the first half of 1933. Collections reported in June showed an increase over those of the previous month. While a larger than seasonal decline of 14.6 per cent was reflected in the June sales of wholesale drug firms in this district, its significance was offset to some extent by the fact that in the previous month a contrary to seasonal increase in business occurred. The demand exceeded that of the same month last year by 19.3 per cent, as compared with a similar gain of 24.8 per cent in May. A further small reduction was shown in the volume of collections during June. Sales of farm implements at wholesale during June declined substantially, as is usual at this season. They were 16.0 per cent below the level of the preceding month, but 85.9 per cent larger than in the same month last year. Aggregate sales reported during the first half of the current year were 190.7 per cent above those in the first six months of 1933. Collections reflected a large gain over May . CONDITION OF WHOLESALE TRADE DURING JUNE, 19S4 Percentage of increase or deoronae inNet Sales Stocks Ratio of collccNot Sales June, 1984 Jan. I to date June, 1934 tions during Jun compared with comparcd with compared with to accounts ng June, May, some period Juno, May, notes 0Mutst"Snl \0 1985 1984 last year 1933 1934 on oy +20.1 + 2.4 + 20.9 + 8.6 - 3.7 79 .: - 15.9 - 18.1 + 47.5 +71.7 + 2.6 29'1 +85.9 -16 .0 +190.7 +n.5 - . 7 9'0 +34.4 - 2.0 + 57.1 + 8. 6 + 1.8 5~'7 +19.3 - 14.6 + 28. 0 + 6.9 + 1.4 4 . td Groceries ......... Dry goods .. ...... Farmimploments .. Hardware .... .... Drugs ............ Sales of reporting department stores it principal cities of the Eleventh Federa Reserve District showed that consumer demand for merchandise continued active during the Pili t month. While there was a decline of 16.1 per cent from e previous month, this reduction is attributable to the eh!lh summer slowing-down in business and the unusually Ig temperatures that prevailed during June. Sales reflected an increase of 23.8 per cent over those in June a year ag?, whicn compares with a similar increase of 22 per cen~.I~ May. This bank's index of department store sales, w. IC d is adjusted for seasonal variations, also reflected a ~u~tallle t demand for merchandise during June by remallllllg a approximately the same level as in the previous month. The index stood at 73.4 per cent of the 1923-25 average in June, as against 73.8 per cent in May, and 59.6 per cent in June 1933. Distribution of merchandise during the first half. 0 1934 was 29.9 per cent greater than in the cOl'l'espondlllg period of 1933. Retail Trade i Inventories of merchandise on June 30 evidenced a sbea~ sonal decline of 6.2 per cent from the previous month, U continued 21.5 per cent above those held on the same da~e of 1933. The rate of stock turnover during the first .SIX months of 1934 was 1.54, as against 1.4.0 in the same perIod of 1933. June collections evidenced a seasonal decline, but they remained above those a year ago. The ratio of collections to open accounts outstanding on June 1 was 38.4 per cent~ as compared with 39.5 per cent in May, and 31.9 per cen in June last year. Collections on installment accounts declined from 15.1 per cent in May to 14.4 per cent in June. . -----------------------------------------------------------------------------------------------------~BUSINESS OF DEPARTMENT STORES Total sales (percentage): June, 1934, compared with June, 1988 .......... .. .. . ............... ..... . ... .. . June, 1934, compared with May, 1934 .............................. .. ......... . January 1 to date compared with same period last year. .............. . ..... . .... . Credit sales (percentage): June, 1934, compared witb June, 1983 ..................... . .. . .... .. ..... ... . . . Juno, 1934, compared with May, 1934 . .... ............................ .. .... .. . January 1 to dato compared with same period last yenr ..............•..........•. Stocks on hand nt end of month (percentage): June, 1984, compared with June, 1988 .... . ... ... .. . . . ... ....... . .. . ...... .. ... . June, 1934, compared with May, 1934 ........................................ . . Stock turnover (rate): Rate of stock turnoverin June, 1938 .................. . ......... ............. . .. Rate of stock turnover in June, 1984 .... . . .. .. .. ........... . ..... ... .. ........ .. Rate of stock turnover January 1 to June 80, 1933 ............................ . . . Rate of stock turnover January 1 to June 30, 1934 ........ .. ..... . ............... . Ratio of Juno collections to open accounta receivable outstanding June I, 1934 ..... . .... . Ratio of June collections to installment accounts rcceivable outstanding June I, 1934 .... . Indexcs of department store sales: Houston +34.7 -11.5 +31.5 San Antonio +20.4 -13 .4 +27.9 Others +23.9 -14.2 +22.9 Totnl District +28.8 -16. 1 +29.9 +46.3 +34.4 +25.9 -13.1 +30 . 7 +23.0 -19. 1 +21.5 +25.3 -15 .6 +31.4 +23.0 - 8.1 +30.8 - 4.7 +22.4 - 6.3 +21.5 - 6.2 DoUna +24.7 -17.1 +37.9 Fort Worth +10.9 -25. 5 +20.8 +22.2 -15.3 +37.8 -28.6 -5.4 +21.8 +21.9 - 6.9 +11.4 - 4.4 .25 + 9.8 .23 .21 .22 1.29 1.32 35.9 19.1 .24 .24 1.40 1.54 38.4 14.4 1.42 1.07 39 . 0 15.1 .19 .19 1.14 1.25 33.1 10.4 1.49 1.53 39.6 .31 .29 1. 76 1.84 42.6 ~~ff;~~~g~iHI~t;;~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ :::~~ ~ :~~ ~ ~ ~ ~ ::~ ~ ~ ~ ~ ~ :: ~ 65.1 75.6 74.8 77.9 70.9 91. 7 75 .4 91. 7 79 .2 83.8 74.7 83.8 61.0 65.1 62.2 61.4 67.5 76.7 78.4 78.8 ~~:~l~:~~=~~~: mt::: ::::::::::::::::::::::::::::::::::::::::::::::::::: ~~i~::::1=~~;: 48 .4 52.4 50.4 51.4 60.9 70.0 70.4 69.3 42.6 48.0 47.3 47.0 40.8 44.5 46.4 44.9 52.8 56.9 50.2 50.3 .25 .25 Indexes of department store stocks: m:: :::::::::::::::::::::::::::::::::::::::::::::::::::::::: --- -----------------~~~~~~~~~~----------------__________________________________________________________ MONTHLY BUSINESS REVIEW ~ ~o The number of commercial insolvencies in this district during June showed a further decline from the low level of the P~'eceding month, and while the liabilities involved were hIgher than those in May they were with that exception slllaller than in any other month since July, 1924. The rePort of Dun & Bradstreet, Incorporated, showed that 17 defaults occurred in June, their indebtedness amounting to Commercial Failures $288,909. In the previous month there were 18 commercial failures, with liabilities of $165,927, and in the corresponding month last year 57 insolvencies were reported, owing $819,128. A favorab!e record was made during the first half of 1934., t~ere bemg only 14.7 defaults as against 434 in the same penod last year, and a total indebtedness of $2,330,787, as compared with $7,198,692 in the first six months of 1933. AGRICULTURE Weather conditions during the past month were unfavorable to crops in nearly all sections of the Eleventh Federal ~eserve District. The drouth which was affecting some portIons on June 1 has now spread to practically all sections of the district. While rains have fallen in widely scattered areas, they have been mostly local and have given largely temporary relief. The drouth has been accompanied by high telllperatures which have caused rapid evaporation of rel1laining moisture and have burned the plants. Most crops ?ave deteriorated considerably and unless rain is received In the near future many crops will be beyond recovery. Crop Conditions In the July 1 report of the Department of Agriculture, the indicated production of wheat was raised in Oklahoma and Arizona, was lowered in New Mexico, and remained unchanged in Texas. The estimated pro,duction for this district, as derived from the July 1, 1934 estimates, by states, of the Department of Agriculture, was 26,130,000 bushels as com~ared with 13,719,000 bushels in 1933. The Texas productl 0 ? Was nearly double the low figure of a yea~ ~go. The est1mated production of oats in Texas and LOUlsiana was considerably higher than the outturn in 1~33, but it ~as ?elow last year in Oklahoma and New MeXICO. ProductIOn In Texas was placed at 34.,012,000 bushels, whereas only 20,808,000 bushels wer,e harvested last year. Feed crops in most of the district are in poor to only fair condition and yields are expected to fall considerably short ~ last year's harvest. Despite the increased acreage, t~e epartment of Agriculture's July 1 forecast for corn m Texas totaled 62 623 000 bushels as compared with an actual production of 74.824. 000 bushels in 1933, and a five-year average of 81,615,000 bushels. While some sections report gOod yields, the crop in the m~jor portion o~ ~he State suffered from drouth and hot wmds at the cntical stage of ~evelopment, which greatly reduced yields. The Louisiana rap promised an outturn of 16,475,000 bushels on July 1 as compared with a production of 15,574~000 bushels last rear, but the increase was more than accounted for by the arg<:r acreage. The estimated production in Oklahoma, Ne.w MeXICO, and Arizona is considerably under the harvest m i93~ Hay crops in all states attached. to this district, except OUlsiana, promise a smaller productIOn than a year ago. . The Department of Agriculture reported that the acreage planted to cotton as of July 1 was sharply lower than a year ago. The reductions in acreage as compared with a year ago in states attached to this district were as follows: Texas ---32 per cent· Oklahoma-36 per cent; Louisiana-30 per Tent; New Me~ico-25 per cent; and Arizona-6 pe: cent. d he cotton crop has held up fairly well. to ~ate despIte the . routh, but reports indicate that detenoratIOn has begun In Some areas. From several sections there are complaints ~f st~nted growth, shedding, blooming in top, and pren:~ture Npenlng whic? are typical effect~ of. drouth con~ItIOns. evertheless, It should be borne m mmd that durmg the drouth period th~ plants have developed strong tap and lateral r~ots whICh would be conducive to quick plant recuperatIOn should heavy general rains occur in the near future. Insec~ ~c~ivity w?ic? was prevalent a month ago has greatly dImInIshed. PICkmg has become general in South Texas ~nd is gradually extending northward. The drouth has also reduced production in most minor crops. The Texas rice crop was estimated at 6,900,000 bushels on July 1, as compared with an actual production of 7,473,000 bushels last year. Fruit crops in most states promise yi~lds .considerably hea,vier than a year ago, but some detenoratIOn occurred durmg the past month. While the July 1 estimate of the sweet potato crop in Louisiana was higher than the 1933 production, it was materially lower in Texas and Oklahoma. The Irish potato crop turned out better than a year ago as the commercial crop was harvested prior tq the drouth. Range and livestock conditions showed a sharp deterioration during the past month. Rainfall generally has been light and of a local nature and there has been little precipitation in drouth stricken areas of Northwest, West, and South Texas, Southern New Mexico, and Southeastern Arizona. In these areas ranges are very poor and over much of the territory it has been too dry to plant feed crops. Surplus feed is about ex~auste~ and stock wate~ is scarce. Feed is either being shIpped m or stock are bemg moved to more favored areas. In some localities along the Coast, and in East Texas rains have fallen which should be beneficial but more rai~ will be needed to insure growth of range vegetation. Dry weather and high temperatures have prevailed in other sections of the State and are causing rapid deterioration of ranO'es. Livestock have held up better than might be expected due to feeding, but should the drouth continue heavy shri~kage may be expected. Livestock The Department of Agriculture reported that the condition of cattle ranges in Texas on July 1 was the lowest on record, the figure for that date being 62 per cent of normal as compared with 78 per cent a month earlier and 74, per cent a year ago. Sheep and goat ranges were rated at 64. per cent of normal as compared with 78 per cent on June 1 and 75 per cent on July 1, 1933. The condition of Texas cattle was placed at 71 per cent on July 1, which is 8 points lower than a month ago and 9 points below last year. The condition of sheep declined 7 points during the month and that of goats 4, points. As compared with a year ago, that of sheep was 7 points and goats 6 points lower. The receipts of cattle and calves at the Fort Worth market in June showed a large increase over both the previous month and the corresponding month last year. On the other hand, arrivals of hogs and sheep reHecte'd sharp declines from both comparative periods. Movements and Prices 4 MONTHLY BUSINESS REVIEW -----------------------------------------------------------------------------Prices for the better grades of slaughter cattle rose to higher levels during the past month as there was an active demand for this class of offerings. On the other hand, trading in the plain and common grades was slow and prices receded to lower levels. The hog market advanced rapidly during June and toward the end of the month reached the Cattle ....... ... . Calves .... . .... . Hogs ........... . Sheep ... .. .... . . 1034 64,280 21,078 32,470 04,774 June 1033 42,786 13,304 45,639 103,264 Change over year +21,503 + 8,584 -13,100 -38,400 May 1934 48,257 18,510 37,554 140,073 COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight) June FORT WORTH LIVESTOCK RECEIPTS (Number) June highest point since February. A moderate reaction occurre~ during the first half of July. Sheep and lamb prices foIl owe an irregular course with the trend slightly downward. Change over month +16,032 + 3,468 - 5,075 -75,800 Bcef stecrs .... ...... .......... . .. .... . .. . Stocker steers ........ .. ................. . Butcher cows ............... . ........... . Stocker cows ... ..••. . ...... ... . .... •. . ... Calves ................... ... .. .. .. .. .. . . ~~~:::::::::::::::::::::::::::::::::: June 1034 $8.00 4.50 3.05 1983 $5.50 5.00 3.75 3.00 5.25 4.00 3.50 0.25 5.00 4.85 3.50 8.00 May 1034 $6.00 4.00 4.25 4.50 0.60 3.05 5.25 0.50 FINANCE Member bank borrowings at the Federal Reserve Bank reflected a decline during the past month. The total on July 15 amounted to $4,39,000 as compared with $583,000 on June 15 and $3,719,000 on July 15, 1933. There were 18 banks borrowing from the Federal Reserve Bank on July 15 as against 24 a month earlier, and 118 a year ago. There was no change during the month in the holdings of bills purchased in the open market and of United States securities. As compared with a year ago, investments in United States securities were $22,476,000 larger, but holdings of bills were $164.,000 smaller. The reserve deposits of member banks totaled $114,784,000 on July 15 as compared with $111,267,000 at the middle of June, and $55,682,000 on the corresponding date in 1933. Federal reserve notes in actual circulation amounted to $4,0,906,000 on July 15, which compares with $39,889,000 a month earlier, and $34,,· 985,000 a year ago. There were $1,425,000 Federal reserve bank notes in circulation on June 15, and $1,972,000 on July 15, 1933. Operations of the Federal Re· serve Banlc CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) July 15, Total onab reserves ..................... . . Discounts for member hanks . ............. . Other bills disoounted ............... . .... . Bills bought in open market ... .... .. .... . . United States securities owned ..•.......•.• Other investments ...................... .. Total earning assets ......... .... ........ . Member bank reserve deposits ...... . ...•.• Federal reserve notes In actual circulation ... Federal reserve bank notes in actual circu· !ntion .................... ... . . ....... . July 15, 1934 $ 94,254 489 Juno 15, 1938 $ 53,800 1934 $103,476 588 142 72,066 114,784 40,006 306 48,000 5 53,020 55,682 34,085 72,200 111,267 30,880 Nono 1,072 1,425 None 7~~~~ ~~~~ None 142 7~~~~ Reports from member banks in selected cities during the period from June 13 to July 11 reflected a substantial increase in loans and investments but a decline in deposits. Coincident with the June 15 United States Treasury financing, the investments of the banks in Government securities showed a sharp gain and only moderate recessions occurred in subsequent weeks. Total holdings on July 11 amounted to $177,836,000, which was $31,351,000 greater than on June 13 and $70,812,000 above those on July 12, 1933. Investments in other stocks and bonds declined $4,4.63,000 between June 13 and July 11 and on the latter date were $716,000 lower than a year ago. Loans on securities on July 11 were $1,4,33,000 lower than four weeks earlier, and $3,308,000 below those on the same date in 1933. "All other" loans reflected a gain of $2,526,000 Condition of Member Banlcs in Selected Cities between June 13 and July 11, but the total on the latter datj was $19,510,000 smaller than a year ago. The net detn an deposits of these banks showed a steady decline during thOe month. The total of $270,538,000 on July 11 was $1.' 557,000 below that on June 13, but was $58,4.57,000 to excess of that on July 12, 1933. While time deposits rose $2,886,000 during the four·week period, they were still $2h' 674,,000 lower than a year ago. Their reserves with t e Federal Reserve Bank showed little change during the month. CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thousands of dollars) June 18, July 11, Unit"d States securities owned ............ . All other stocks, bonds, and securities owned . Loans on seourities . .. .. ...... ... ... ... . . . All other loans .... . . ................ .... . Totnlloans .... . .............. ... ....... . Net demand deposits .... ................ . Time dep08i ts .. ....... ... ..... . ... . .... . . Reserve with Federal Reserve Bank ....... . Bills payahle and rediscounts with Federal Reserve Bank ..... . ................... . July 12, 1034 $177,830 51,147 58,685 124,770 183,456 270,538 124,500 73,480 1083 $107,024 51,863 01,093 144,280 200,273 212,081 127,183 32,200 1084 $146,485 55,610 00,118 122,244 182,302 281,095 121,023 73,014 None 354 Nonc · An up·turn was reflected in the combIn ed . e daily average of net demand an d tlIllth deposits of member banks in the Eleven Federal Reserve District during June. Increasing fd?~ $708,920,000 in May to $712,177,000 in the succee In month, this average exceeded that of June last year. by $129,789,000. The major part of the gain over the prev1~U; month was shown in net demand deposits of reserve CIt banks; the time deposits of country banks registered a decline. Deposits of Member Banlcs DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) ----------------------------------------------Combined Total Reserve City Banks Country Ban~ Net domand Timo Net domand Time Not demand d Timrta deposits deposits deposits doposits deposits opOll 5 Juno, July, Aug., Sopt., Oct., Nov., Dec., Jan., Feb., Mar., April, Mny, June, 1033.... . . 1033...... 1033 . ..... 1033...... 1033 ..... . 1033.. . . . . 1033...... 1934... . .. 1034..... . 1034 ... ... 1034...... 1934 ... . .. 1034 .... . . 305,983 396,783 380,177 400,507 436,027 466,108 404,176 505,009 532,717 535,366 523,307 516,000 510,465 $186,405 101,055 100,031 187,508 186,036 187,047 186,087 102,214 195,746 192,706 102,548 192,830 192,712 $102,306 106,040 101,302 105,145 210,087 228,265 240,071 240,001 261,770 263,291 257,838 253,752 250,456 $113,300 113,008 112,665 110,146 109,264 100,014 100,132 108,317 110,348 108,385 107,615 108,146 100,507 $203,587 200,743 107,876 205,452 225,040 287,033 253,205 ~50,818 270,047 272,064 265,550 262,338 263,000 $~Hh 78'266 77'862 71'672 81'038 80'555 83'801 85'308 84'381 84'08 8 84'684 83'115 , MONTHLY BUSINESS REVIEW charges amounted to $569,290,000, which compares with $530,099,000 in the previous month, and $469,646,000 in the same month last year. The expansion over the preceding monlh amounted to 7.4 per cent, and that over the same month a year ago was 21.2 per cent. A substantial increase was shown in the amount of debits to individual accounts at banks in the leading centers of the Eleventh District during June, despite the fact that a gain does not generally occur in this month. Total Debits to Individual Accounts While the total volume of acceptances which were executed by banks in this district and outstanding on June 30 amounted to $160,330 as against $166,367 a month earlier, a perceptible increase was reflected in the amount of acceptances based on the domestic shipment and storage of goods. Total acceptances outstanding on June 30, 1933, amounted to $1,363,388. Acceptance Market DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) Porcontngo ohnngo ovor Juno 1034 Ah'l ~no ........ . Aul B Itm ... ...... . cllaumont ... . . .• Dorsicana ...... . Ela~as ......... . F aso ... .... .. Gort Worth ..... . nalveston .. . ...• P ouston .. .. . ... . ~t Arthur .... . s well ........ .. sfn Antonio .... T"ovo port .. ... . Toxnrkana· .... • Wueson .... .... . . Juno 1933 yonr S 4.880 S 4,174 +17.1 +22.2 +38.8 + 3.8 +3 1.0 +17.0 +22.8 +25.4 +20.9 +18.1 - 9.7 5.4 + 7.5 -20.6 + 7.9 + 7.0 +33.2 18.774 16.022 2.175 166.220 16.747 61.801 19.519 141.151 5.303 2.289 48.887 28.843 4,811 8,140 10,116 12,694 15,368 12.192 2,006 126,031 14,3 13 50,320 15,563 116,766 4,490 2,535 46,382 26,831 6,056 7,543 9,456 9,530 + May 1034 S 4,541 17,556 15,282 2,268 156,807 16,838 54,547 16,021 124,231 4,054 1,086 52,822 28,450 4,712 8,135. 0,061 11,870 Percontago chnngo over month + 7.7 + 6.0 +10.7 - 4.1 6.0 .5 +13.3 +21.8 +13.6 + 7.0 +15.3 - 7.4 + 1.3 + 2.1 + .1 +11.6 + 6.0 + The savings deposits of 128 banks in this district that operate savings departments rose from $138,333,213 on the last day of May to $141,201,833 at the close of June, registering a gain of 2.1 per cent. The total on the latter date was 5.0 per cent larger than on June 30 last year, when the amount reported was $134,415,128. That the increases were general is indicated by the fact that all cities except one participated in the gain over the previous month, and only two cities showed declines from a year ago. Savings Deposits ( Wfcb~i'; 'ralia: ::: I f Total... .. $560,290 $469,646 +21.2 S530,000. + 7: \th ·Inoludes figures of two banks in To.lnrkann, Arkansas, located In the Elg District. -- ----------------------~ - SAVINOS DEPOSITS Number of reporting banks Bllaal~~.ont.... ..... ........ Dl ~ ~I Paso: : : : : : : : : : : : : : : : : : : t a"i Worth................ na veston ................ . Number of savings dopositors 3 8,433 74,066 O. 2 4 4 P ouston.. .. .. .. .. .. . .. . .. . s~~tt;~~r... ............ Sh 010............... Wrovcport.. .. .. .. .. .. .. .. 11' I\lleot~a Falls.............. ors...... ........... 3 3, 77 W~J:!" "'"'' '''''''''''' ~ 3 -128 J~,'m 16,670 66,708 2r:~~~ 21505 , 10,5~~ 5NtO , :i2ii7s7 , . .. Amount of savings deposits $ 3,368,166 24,705,485 4,660,073 10,203,725 9,732,645 28,609,622 1,880,805 15,134,443 10,043,112 6,071,140 2,863,633 23,730,894 May 31,1034 June 30, 1933 Juno 30, 1034 Porcentago chango ovor year in Bavings deposits Amount of Bnvinj!8 doposlts Numbor of savings dopositors Number of savings depositors 8,305 74,588 10,720 32,086 16,677 66,705 5,015 21,360 21,536 10,404 5,681 51,511 $ 3,273.264 +35.3 - 5.6 - 1.2 .7 0.0 0.6 9.1 6.7 +19.8 +13.7 + 5.0 325,578 $138,333,213 + 6.4 + .1 S 3,164,630 7,060 72,768 10,108 32,803 16.361 64,807 4,362 19,446 21,802 10.315 5,553 49,279 24,601,772 3,443,300 10,904,886 0,850,405 28,500,750 1,880,720 13,804,357 0,209,387 5,600,301 2,300,291 20,875,050 + + + + $141201833 315,744 $134,415,128 ',,' ted tho number of savings dopositors. Amount of 8avin~8 deposIts Peroentage ohango ovor month in savings deposits 24,244,430 4,621,180 10,005,310 0,655,561 27,085,046 1,864,525 14,832,126 10,078,855 6,886,202 2,762,418 23,193,378 + 2.0 +1.0 + + 3.1 2.0 + .8 + 2.7 +1.0 + 2.0 - .4 + 3.7 3.1 + + 2.4 + 2. 1 Total. . . . . . . . . . . . . 'Only 8 banks in Dallas, 10 in Houston, and 69 In All others ropor Prevailing ralc!J: JULY DISCOUNT RATES Dallas 'Jr7 5 R"to oha~~eon c~~~diiy 'pap~; aoo~;cd' by' ;;Breh~~.. c·;o~oipi.., ·~tC·.: ::::::::::::: ~n oattlo loana .... . . ................. ....... ......... .... .. .... ... . .... . 6-8 5-6 5-6 4-8 5-7 6 ;:--t . ' .'" e 0harged ouslomers on prime oommerOlol paper suo h as that now eligible for ,>- rediscount undor tho Federal Reservo Aot ... '.' ..... : ...................... .. t\Uto oharged on loans to other banks seoured by bdlB receivable . . . . iI '! " 'i '(~~i"" .\Ut~ on loans seoured by primo stook oxohango or othor ourrent ~o ~cs")~ IDOluding loans placod In other markets through oorrespondont an . Demand . . ........... . .. . ......................................... .. EI PoBO 6- 8 6-8 7-8 6-8 Houston San Antonio Waoo IJT7 6 2-7 6-6 6-7 6 3- 6 5-8 5-8 6-8 5-8 5-7 4J.t-7 8-7 7-10 6-8 6-8 6-8 7-10 6-8 6-8 6-6 8 Fort Worth 5~ INDUSTRY ~ottonseed While the receipts o~ see~ during June at roducts Texas cottonseed 011 mIlls reflecte~ a much smaller increase over the prevIOUS ~onth than is usual at that time, the crushings of seed an~ t e production of cake and meal, hulls, and linters turned IlP.ward following the extremely low output durin/?i May a~ ~hIdenced a contrary to seasonal increase. Companso~s Wlt~ e corresponding month of 1933 showed that receIpts seed Continued in greater volume than a year ago, whIle a o.ther operations were materially smaller. ~ith the exceptIon of the output of linters activities dunng the eleven II months of the current season remained below those in the same period of the 1932-33 season. Operations at cottonseed oil mills located throughout the United States, while reflecting the usual seasonal decline during June, were on a level considerably above the average for that month. Receipts of seed during the month were also in greater volume than a year ago, but all other operations were smaller. During the cotton season, August, 1933, through June, 1934, activities remained below those in the corresponding period of the previous season, excepting the -----------------------------------------------------------------------------MONTHLY BUSINESS REVIEW 6 --------------------------------~-------------------------------------------- production of linters. Stocks of cottonseed oil, cake and meal, and hulls held by both Texas and United States mills on June 30 were less than those on hand a month earlier or a year ago, and at the latter mills inventories of linters were also smaller. STATISTICS ON COTIONSEED AND COTIONSEED PRODUCTS Texas United States August 1 to June 30 August 1 to June 80 This soason Last season This soason Last season Cottonseed rooelved at mills (taos) . .. .. . . .. . . .. ... . . . . . 1,326, 712 1,434,811 4, 114,946 4,481,683 Cottonseed orushed (tons) .... . 1,310,133 1,506,008 4,054,801 4,462,084 Cottonsoed aD haDd JUDe 30 (tons) .... .. . .. .. .. .. .. . . .. 115,365 104,071 280,476 317,623 Crudo oil produced (pounds) . .. 385,640,713 458,269,623 1,268,094,510 ~ ,3 0 6 ,051 ,05 7 611,221 604,374 1,843,170 2,021,530 Cake aDd moal ~roduoed (tons) Hulls produoed tons) . . . .... .. 357,053 1,270,420 440,872 1,070,016 Lintors produoed (ruDning bales) .. .. .... .... ... . ..... 225,427 180,686 780,132 713,160 Stocks on hand Juno 30: Crudo oil (pounds) . ... .. .. .. . 11,306,050 14,047,405 26,965,149 30,050,710 Cake and meal (tona) ........ . 20,620 50,470 176,178 106,740 Hulls (tons) . ...... ... . ..... . 17,255 28,61 6 43,607 80,350 Linters (running bales) . •..• . .• 20,230 22,573 110,644 108,629 Textile Milling Reflecting the general curtailment program together with the summer dullness, cotton consumption in June declined sharply. Activity was on a level far below that in both the previous month and the corresponding month last year. There were only 363,414 bales of cotton consumed by mills throughout the United States during June, as compared with 519,765 bales in May, and 697,261 bales in June last year. The large declines as compared with a year ago that have been witnessed during the past two months were sufficient to offset the appreciable increases that were registered earlier in the season. A total of 5,340,715 bales of cotton was consumed during the eleven months of the current cotton year, as compared with 5,536,764 bales in the same period of the previous year. Stocks of raw cotton held by consuming establishments on June 30 were in smaller volume than those a month earlier or a year ago Activities at reporting Texas textile mills during June, while considerably below those a year ago, evidenced an increase over the previous month contrary to seasonal tendencies. Both the consumpLion of cotton and the production of cloth were greater than in May, and the orders for finished products held on June 30, while materially below those on the same date last year, were slightly larger than a month earlier. Stocks of cloth on hand June 30 continued larger than on either comparative date. CottoD-growing states: Cotton consumed .... .. .. .. . On hand June 30 inConsuming establishments . Publio storage and oompresses . . . .. .. . . .... . . . United States: Cotton oonsumed . . . . . . .. . . . On band Juno 30 inConauming establishmonts. Publio storage and oompresses . . .... ... .. . ... . Cotton Movements June 1033 292,621 565,051 1,001,987 5,681,877 607,261 Reeoipts .. .. ......... , ... .. . . Exports . ... ... . .. .. ...... .. . Stooks, Juno 30 ... .... . .. . .. . Juno 1034 44,439 130,118 ,Tuno 1033 70,100 161,252 August 1 to June 30 This soason Last soason 2,214,048 2,074,~~~ 2,006,083 1,000'012 552,062 536, COTION-GALVESTON STOCK STATEMENT (Bales) For other foreign ports . ........ .. ... .. ... .. .. ... . .... . For oonatwiso ports ... . ... . . . .. . . ..... . . '" .. . .. ...... , In oompresses and depots .... ... . .. . .. .. . . .... .. .. .... . Juno 30, 1934 300 200 32,400 1,500 518,562 Total. .. , ........ , .. .......... .. ....... . 552,062 For Great Britain . . , .. .. , .... ..... .. .. ....... ... .... . For France ..... . . .. .. . .. .... . . .. . .. . . .... .... ... .. . . Juno 30, 1083 2,000 2,000 16,500 3,000 513,113 58o:6i2 ~----------------------------------------------~ Receipts .. .. .... . .... . ...... . Exports . . ..... . ... . . . ... .. . . Stooks, Juno 30 . . .. .. . , .. ... . 1034 31,740 136,163 1083 06,040 272,146 This soason Last BOas on 2,228,440 2,440,401 800,207 2'~H'~~f 2'348'471 I, ' 4,602,727 1,016,096 363,414 COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bales) -----------------------------------------------August 1 to Juno 30 Juno June August 1 to June 30 This season Last senaon 4,260,820 Total foreign exports of cotton from the United States during the past month also evidenced a material increase over the low May volume; however, a decrease was shown as compared with the ;:1bnormally heavy volume in Ju?e, 1933. There were 459,226 bales of cotton exported dUrIng June, which was higher than the average for that month, and y compares with aggregate shipments of 284,,764. bales in Mtha , and 614,561 bales in June last year. Exports during e eleven months of the present cotton season totaled 7,228,595 bales, which compares with 7,727,392 bales in the same period of the preceding season. Declines in the takings oJ American cotton by the United Kingdom, France, Italy, an Germany account for the reduction in exports this season as compared with the previous season. COTION MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) COTION CONSUMED AND ON HAND (Bales) Juno 1034 usual seasonal trend. Shipments through the port of Gal· veston during the current season continued in excess of .those in the first eleven months of the previous season, whIle aJ Houston they were smaller as a result of the large an consistent declines registered in recent months. Receipts of domestic cotton at these ports during June continued in much smaller volume than a year ago, but at Houston they were slightly larger than a month earlier. Stocks of cotton held at these ports on June 30 were seasonally smaller than a month earlier; at Galveston they remained in slightly larger volume than a year ago. 5,860,704 5,340,715 5,536,764 1,326,480 1,308,448 5,085,715 6,300,402 Although exports of cotton from the ports of Houston and Galveston during June remained in considerably smaller volume than in the corresponding month of 1933, they reflected an increase over the previous month contrary to the .-----------------------------------------------' SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTS-(Balce) ____ --------------------------~------A-Ug-u-t-l-to-J7u-ne 30 s ~ Receipts .... ...... . : . . .. . . . , .. . .. .... . ..... ... , .. , ... , Exports: United Kingdom ..... , .•. . .. ... .. •.... • .. . ,. Franco .. . . .. .. . .. . . .. . .. .. .. . . . . .. .. .. .. . . . Italy....... . .. . .......... . .. . .... . ... . .. . .. Germany ..... . . . ..... . ... . ............ . .... Other Europo.. .......... ............. .. .. .. Jaran ........... .... .. .............. .. ..... .AI other countries.... . . ... . .. . . .. .. .. .. . . .. . T otal forolgn ports . . . . . . . . . . .. . . .. .. . . .. . . .. . ... . .... Stooks held at all Unitod States ports, Juno 30. . . .. . . ...• This season Last Season 7,615,606 ~'m'~~ 1,226,462 '810'060 704,382 740' 030 628,678 1730'409 1,274,130 '061'610 988,654 1549'062 1,772,427 '540'366 633,853 7727:392 7,228,605 3' 443527 2,555,120 " -----------------------~~==~~~~~======----------------------- ________________________ M_O_N_T_H_L_y B_U_S_IN_E_S_S__ __ R_E_V_IE_W ______________________~7 less than that of the same month last year. While East Texas accounted for most of the increase over May, the Gulf Coastal area was the only portion of the State to show a reduction. In New Mexico an increase of 2,050 barrels brought the daily output to 48,000 barrels. There was a further small decline in North Louisiana, where the month's daily yield amounted to 25,300 barrels. SPOT COTTON PRICES-(Middling Basis) (Cents per pound) July 14, Juno, 1934 High Low ~ewYork ................. ..... .. ...... . D~rraOrleans ... 12 .45 12.30 12.00 12.35 12.35 . .... . . ......... ........ .. g~~S~ti~:'::::::::::::::::::::::::::::: : 1934 13 .05 13.00 12.66 12.90 12.90 11 .80 11 .72 11.36 11.80 11.80 JUNE DRILLING RESULTS Petroleum Despite a further expansion in daily average output during June, the . gross production of crude oil in this district was on a slIghtly smaller scale than in May, and it was appreciably under that of a year ago . The total reported was ~4,,035,000 ?ar. rels, as compared with 34,,157,350 barrels m the prev~ous month, and 39081000 barrels in June last year. FIeld activity increased so~ewhat durin a the month, as evidenced fY the completion of 923 wells l~st month ~s against .899 .n May. There were 685 producers completed m June, YIeld· Ing init~ally 3 027 834 barrels as compared with 650 suc· Ce ss f uI wells reported in the ,previous month an d h avmg " . a combined initial production of 2,504,760 barrels. Com· pletion. 261 75 377 118 07 166 49 361 62 43 3 2 9 2 Total Toxas ....... New Mexico ........... . ... North Louisiana ..... . . . . . . . 888 5 30 670 20 11 Juno totals, district . ........ May totals, district ...... . .. 923 899 686 660 June, 1084 Daily Avg. Total Co':,;C. :::::::::::::: UIBIIl.OO' .•••••••••••• • 750,000 --- Total District ........ 34,035,000 - - ~arillo ....... nuatin ......... cooumont .... . . D~lr.::.s Christi. . EI Paso: ...... · Fort Wor'tb· ···· ... .. euston ...... ~ort Arti.;;;.' : : : an Antonio ~reveport .... aco ..... Wichii~ 'F~it8: : : ~alvooton _Total .... 83 22 14 57 22 36,432 213,901 2,712,616 20,206 38,047 7 198 1 12 3,020,790 6,005 1,039 27 28 211 221 3,027,834 2,604,760 4 4 July 13, July 14, S1.12 $ .62 1934 Texna Coastal (34 gr. and above) ................... . . .. North Texns (40 ~r. and above) . . .... . ................ . North Louisiana (40 gr. and above) ................ . ... . 1933 1.03 1 08 .62 52 Following the noticeable increase which occurred in May, the valuation of build· ing permits issued at principal cities in this district showed a substantial decline in June, but remained above the level of the first four months of the year. The valuation reported was $1,092,754, which compares with $2,055,395 in May and $1,730,191 in June a year ago. It should be observed that there was a larger number of permits issued in June than in either the previous month or the same month last year. Building Inorc<'\8o or deorease over May, 1034 Total Daily Avg. - 02,050 - 124,050 +380,050 - 25,200 -248,850 + 750 + 1,550 +30,500 + 750 - 2,550 48,000 25,300 - 100,200 + 15,550 - 37,700 - - - --1,001 ,200 M Total Toxas ......... 31,830,000 N~~b~i~o,' ....... . .. . .. . .. 1,440,000 N Initial produotion (Oil statistics compiled by "The Oil Weekly," Houston, Texas) 115,300 172,100 555,550 48,'150 109,800 3,450,000 Eent ~f, Weat 'fexas . ... . . . .... 5,103,000 S:th ,~~~ ... ... . . . . .... . ... 10,600,500 1,453,500 Texas 5,004,000 Foil· urea CRUDE OIL PRICES OIL PRODUCTION-(Barrela) ~or~b fexas .... . .... .. .... . . , - Gas wolls North Toxas ...... ... ...... Central Woot Toxas .... . .... East Texas .... .. .......... South Toxas .. . . . ..... ..... Texas Coastal.. ... . ..... . .. The daily yield from wells in Texas averaged 1,061,200 barrels during June which is 31 000 barrels greater than th e aVeracye of the 'preceding month , but 180,450 barre Is , b - Producers --- --+31,000 ----- -122,350 1,134,500 + 2,050 400 - +32,650 BUILDING PERMITS Juno, 1034 Juno, 1033 -- - - - - - -S 20 54 $ 23,575 No. 70 01 25 301 38 78 121 180 04 161 157 12 232 1,079 Valuntion 05,097 10,880 28,301 187,723 9,281 84,770 134,838 368,745 9,741 82,923 40,095 11,287 10,829 No. 118 84 31 408 46 90 90 137 38 147 114 22 29 -$1,092,754 1,470 Percentago cbango valuation over year Valuation - 5,072 157,084 11,984 17, 200 183,002 10,580 790,110 39,443 270,465 9,227 117,214 04,337 35,772 11,102 $1,730,191 +204.8 - 58.3 + 00.0 + 68.0 + 2.6 - 12.3 - 89.4 +241.9 + 30 .3 + 6.0 - 29 .3 - 23 .7 - 68.4 + 61.6 - 30.8 January 1 tbrollgb June 30 May, 1034 No. Percentage chango valuation over month Valllation - 10 S 13,018 58,335 73 40,011 00 10,500 32 250,020 445 28,413 35 70,250 78 28,295 134 211 1,263,190 14,340 37 65,950 140 132,061 212 33,440 22 31,067 47 -- - 1,675 $2,055,395 Cern.ent The output of Portland cement at Texas r1 mills in June amounted to 377,000 bar· a~d' being 26.9 per cent larger than in the previous month Sh' 8.6 per cent above that in the same month last year. fel\pments, though 13.8 per cent greater than in June, 1933, a . off somewhat and amounted to 339,000 barrels, as 6~81nst 356,000 barrels in May. There was an increas~ of b per cent durin'" June in stocks on hand at these mIlls, o~t the total of 595,000 barrels reported on the last day the month was 18.3 per cent less than the amount on + 00.4 + 12.0 - 57.0 + 71.0 - 20.7 - 67.3 + 11.2 +870 .5 - 70.8 - 32.1 + 48.2 - 63.0 - 66.2 - 45.8 - 46.8 Porcentage chango 1033 1034 valuation over No. Valuation period 145 $ 100,605 330,642 428 120,008 505 104,215 141 1,256,212 2,328 129,810 222 400,840 475 312,159 708 1,090 2,009,400 72,109 200 391,719 807 387,031 899 175,235 112 77,485 302 103 538 404 127 2,147 199 507 525 900 222 840 606 155 102 S +121.6 - 02.0 + 68.1 + 00.5 + 11 .0 + 35.7 - 78.3 + 60.2 +126.4 + 89.1 - 31.8 + 99 .2 + 1.1 + 67.7 $0,000,130 7,594 $6,580,809 No. 8,482 V.luation 75,186 000,833 71,750 80,222 1,122,230 95,090 1,847,989 207,821 1,152,798 38,139 674,305 194,339 173,280 46,215 --.2 + hand at the close of the same month last year. PRODUCTION, SIDPMENTS, AND STOCKS OF PORTLAND CEMENT (In thousands of barrels) June Production at Toxas miII~ .... . Shipments from Texas mIlls ... . Stocks at ond of month at Texas milia ... . .... · ···· .. ······· Percentago ohange from June May 1934 377 330 1933 1934 + 8.6 +26.0 +13.8 - 4.8 505 -18.3 + 6.8 January 1 througb Perceatage June 30, ohange over 1934 year 1,936 1,894 + 3.0 + 3.6 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board. July 26, 1984) Industrial production, which had increased during each of the six months from December to May, declined in June by somewhat more than the usual seasonal amount. Factory employment and payrolls also showed decreases which were partly of a seasonable nature. The general level of wholesale commodity prices advanced during June and showed little change during the first three weeks of July. PRODUCTION AND EMPLOYMEN';l' Volume of industrial output, as measured by the Board's seasonally adjusted index, decreased from 86 per cent of the 1923-25 average in May to 84 per cent in June, reflecting chiefly a sharp reduction in activity at cotton textile mills. Production at lumber mills and at coal mines also showed a decline. In the steel and automobile industries activity decreased in June by an amount somewhat smaller than is usual at this season. Maintenance of activity at steel mills in June reflected in part the accumulation of stocks by consumers, according to trade reports, and at the beginning of July output of steel showed a sharp decline. Employment at factories decreased somewhat between the middle of May and the middle of June, reflecting reductions in working forces in industries producing textile fabrics, wearing apparel, leather products, automobiles, and lumber, offset in part by increases in employment at steel mills and at meat packing establishments. Value of construction contracts awarded, which had shown little change during May and June, showed an increase in the first half of July, according to the F . W. Dodge Corporation. Department of Agriculture estimates, based on July 1 conditions, indicated a wheat crop of 484,000,000 bushels, compared with an average of 886,000,000 bushels for the five years 1927-1931, and a corn crop of 2,113,000,000 bushels, compared with the five-year average of 2,516,000,000 bushels. Crops of other grains, hay, and tobacco were also estimated to be considerably smaller than usual. The acreage of cotton under cultivation was estimated at 28,000,000 .acres, about 2,000,000 less than the acreage harvested last season. In the first three weeks of July drought conditions prevailed over wide areas, particularly in the Southwest. DISTRIBUTION The number of freight cars loaded per working day showed a further slight increase in June followed by a decline in the first half of July. Sales by department storej decreased in June by more than the estimated seaso na amount. WHOLESALE COMMODITY PRICES Wholesale prices of farm products and foods generally advanced during June while other commodities as a group showed a slight decline. Hog prices increased considerably in the middle of the month while wheat declined throughouJ the month. In the middle of July wheat prices advance rapidly to levels above those reached at the end of May, and there was a considerable advance in cotton, while lumber prices declined and finished steel prices were reduced somewhat from the advanced quotations previously announced. BANK CREDIT Between June 13 and July 18 member bank reserves increased to a new high level of nearly $4,000,000,000, about $1,850,000,000 in excess of legal requirements. The growth reflected chiefly a further increase in the monetary gold stock. A seasonal increase in demand for currency over the July 4 holiday period was followed by an approximately equal seasonal return flow during the succeeding two weeks. The volume of reserve bank credit outstanding showed little change. At reporting member banks there was a growth of United States Government deposits during the five-week period, reflecting chiefly the purchase in June of new issues of Government securities by the banks. Bankers' balances also increased but deposits of individuals, firms, and corporations have shown little change. Loans declined somewhat, reflecting a decrease in loans to customers, while loans to brokers showed an increase. Money rates remained practically unchanged at the low levels prevailing in lune.
