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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 m~~t storo sales ...... . ...... ..... ... .
- 16.1%
ner
The valuation of building permits issued at principal
frvo ""nk loans to membor banks at 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' e 2.4 per cent larger than in June, 1933. D'Ist1'1'b'
.
So
utIOn m
pective yields of principal crops are considerably below the
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)

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,

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)

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 ..... . ................... .

June 18,

July 11,

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

· ed
An up·turn was reflected in the combIn
. 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
Ah'l
Aul ~no ........ .
B Itm ... ...... .
cllaumont ... . . .•
Dorsicana ...... .
Ela~as ......... .
F aso ... .... ..
Gort Worth ..... .
nalveston .. . ...•
P ouston .. .. . ... .
~t Arthur .... .
........ .
ssfn well
Antonio .... .
port
T"ovo
.. ... .
Toxnrkana· .... •
Wueson .... .... . .

ohnngo ovor

Juno

Juno

1034

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

Bllaa
D ll~~.ont.... ..... ........
~

~I Paso:
: :::::::::::::::::
t

a"ia veston
Worth................
n
................ .

Number of
reporting
banks

Number of
savings
dopositors

3

8,433
74,066

O.
42
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

Amount of
Bnvinj!8
doposlts

Numbor of
savings
dopositors

Porcentago chango
ovor year in
Bavings deposits

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

+
3.1
+ 3.7
+ 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

;:--te 0harged ouslomers on prime
.
' paper suo h as that now eligible for
.'"
oommerOlol
,>- 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 . . ........... . .. . ......................................... ..

R"to oha~~eon c~~~diiy 'pap~; aoo~;cd' by' ;;Breh~~.. c·;o~oipi.., ·~tC·.: :::::::::::::
~n oattlo loana .... . . ................. ....... ......... .... .. .... ... . .... .

Dallas

EI PoBO

'Jr7
5

6-8
5-6

5-6
4-8
5-7
6

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

363,414

607,261

COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)

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

~----------------------------------------------~

-----------------------------------------------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
compares with aggregate shipments of 284,,764. bales in Mthay,
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.

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

1,001,987

5,681,877

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-us t-l-to-J7u-ne~30
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.

Gas
wolls

North Toxas ...... ... ......
Central Woot Toxas .... . ....
East Texas .... .. ..........
South Toxas .. . . . ..... .....
Texas Coastal.. ... . ..... . ..

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

3,450,000
Eent ~f, Weat 'fexas . ... . . . .... 5,103,000
S:th ,~~~ ... ... . . . . .... . ... 10,600,500
1,453,500
Texas
5,004,000

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 ....

Initial
produotion

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

July 13,

July 14,

S1.12

$ .62

1934

1933

1.03
1 08

.62
52

(Oil statistics compiled by "The Oil Weekly," Houston, Texas)

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.

115,300
172,100
555,550
48,'150
109,800

- 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

Foil·
urea

4

Texna Coastal (34 gr. and above) ................... . . ..
North Texns (40 ~r. and above) . . .... . ................ .
North Louisiana (40 gr. and above) ................ . ... .

OIL PRODUCTION-(Barrela)

~or~b fexas .... . .... .. .... . .

,-

Producers

CRUDE OIL PRICES

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

-

Com·
pletion.

--- --+31,000

----1,134,500 -122,350

+ 2,050
400

-

+32,650

BUILDING PERMITS
Juno, 1034

Juno, 1033

- - -20 -S
--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.