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Monthly Business Review
OFT H E
FEDERAL RESERVE BANK
OF
DALLAS
=
Volume 23, No.6
Dallas, Texas, August 1, 1938
DISTRIer SUMMARY
This copy is released for publicatlon in morning papers-
J 1 31
U
Y
FINANCE
.Agricultural and livestock conditions in the Eleventh Dis¥ICt have improved considerably since the middle of June.
etrol~um production, after showing a further decline in
Junde, Increased substantially in the first three weeks of July
an the daily average output for that period was only 4
per cent below the production rate for July last year. The
lal ue of construction contracts awarded declined further in
fi~ne, but the total for the second quarter was about oneth larger than in the corresponding period last year. Depayment store sales declined slightly more than seasonally
d~ ~ne. The loans of weekly reporting member banks in this
f Istnct showed a moderate seasonal expansion during the
OUr weeks ended July 13.
Total loans of weekly reporting member banks in leading
cities of this district, which had shown an almost steady
decline since the first of the year due largely to seasonal
factors, apparently reached the low point of the season on
June 15 at $222,500,000. During the three weeks ended
July 6 loans increased $4.,600,000, and while there was a
decline in the subsequent week, the net expansion for the
four-week period amounted to $2,500,000, about one·half
of which represented an increase in advances for commercial, industrial and agricultural purposes. Although
loans outstanding thus far in 1938 have been in excess of
those in 1937, the spread between aggregate loans in the
two years has narrowed from $20,800,000 at the beginning
of the year to about $2,000,000 on July 13. Most of the
BUSINESS
decline in the spread has occurred in the period since May 1
11 ~etail sales of department stores in this district declined and is attributable to the fact that a year ago a noticeable
1 . per cent from May to June and were 4.2 per cent be- expansion in some classes of loans more than counterbalw those in the corresponding month last year. The decline
anced the normal seasonal liquidation in other classes, with
rh~ the preceding month was slightly more than seasonal the result that total loans increased during the period,
lC
~ d was reflected in a decrease in this bank's adjusted whereas this year they have followed more closely the usual
1~2~x of department store sales from 102.5 per cent of the seasonal pattern. The investments of these banks, after hav-1925 average in May to 101.1 per cent in June; in the ing reached a peak in December, 1936, showed an irregular
corresponding month last year the index stood at 106.0 per downward trend until the end of April this year and then
c:nt. In comparison with a year ago the sales volume of increased approximately $11,600,000 in the subsequent two
:. ores located in the several sections showed a wide varia- and one-half months. However, total investments on July 13
lIon. The sales of Houston stores were larger than in June were $12,100,000 lower than a year earlier.
ast year and those of Fort Worth firms showed a decrease
Since the spring of 1937, deposits, exclusive of interbank
8dmaller than the district average, while in other cities the deposits, of these banks have shown an upward trend and
ecreases In
. sa1es were somewhat larger than the average.
reached an all-time high level on July 13. The total on that
th Stocks of merchandise at reporting firms declined more date was $26,700,000 greater than a year earlier. Interbank
an seasonally in June, reflecting in part the early clear- deposits contrary to the usual trend, have increased about
ance
of summer merchandise. At the end of the month in- $21,100:000 since the end of March and at the m~ddle of
Vent .
6 5 ones were 8.4. per cent lower than a month earlier and July were $9,100,000 higher than on the correspondmg date
r' fer cent below those a year ago. Collections on both in 1937.
gU
th ar and installment accounts declined seasonally during
The earning assets of the Federal R~serve Bank of Dallas
e month and continued at a slower rate than a year ago. showed a decline of $12,544~000 durmg the month ended
in The dollar value of merchandise distribution by 59 firms July 15, due chiefly to a reduction of $12,320,000 in United
sh seven lines of wholesale trade in the Eleventh District States Government securities which resulted from a realloca7 owed little change from May to June and the decrease of tion of the System's open market holdings among the sever
cent from the corresponding month last year was somem at smaller than the average decline for the first five
REPORTING MEMBER BANKS IN LEADING CITIES
gOO~hs.
in other recent months, the distribution of dry
ELEVENTH FEDERAL RESERVE DISTRICT
MILLIONS or DOLLARS
MILLIONS or DOLLARS
600
eq o. s, e ectrical supplies, hardware, and machinery and eoo
oth;~~ent was considerably under that a year ago. On the
prod and, June sales of drugs and tobacco and tobacco
~-----+------~~
ye ucts exceeded those in the corresponding month last ~
littY' l:d the business of wholesale grocery firms showed
I=--+~~--+-------t------t-----I-----; 400
dru gS
e c ang-e. The mid-year inventories in all lines except
C Were lower than at the end of June last year.
abl °rmercial failures in this district decreased considera / rOlD May to June, but liabilities continued above those
a
ther: : ago. A~cording .to Dun & Bradstreet, I.nco~po~~t~d,
total' e$e 15 InSolvenCIes during the month WIth lIabIlItIes 2OOr-~~=/1c:;;;;;O"""'--:~~:;;
of d~~! ~60,000. During the first half of 1938 the number
that ~ltIng firms was almost three times great~r than in
penod of 1937 and liabilities were 76 per c(lnt larger.
t
wS
fS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
eral Federal Reserve banks. Discounts for member hanks,
which had increased in the preceding period, declined $210,000 between June 15 and July 15, reflecting in large part a
seasonal liquidation incident to the marketing of wheat,
wool and livestock. The reserve balances of member banks,
after having declined somewhat during the latter part of
June, increased about $9,000,000 in the first half of July
and at the middle of the month were approximately $5,500,000 higher than at mid-June. Federal Reserve notes in actual
circulation declined further by $1,147,000 between June 15
and July 15, and the total of' $75,629,000 on the latter date
was $16,327,000 lower than a year earlier.
AGRICULTURE
The outlook for agricultural production in the Eleventh
District was improved materially in the past six weeks hy
the generally favorable weather prevailing during that
period. With the exception of a few limited areas, the moisture supply is sufficient for current needs. Summer crops, on
the whole, have about overcome the handicap of an unfavor·
able start, and according to the July 1 report of the DepartWHOLESALE AND RETAIL TRADE STATISTICS
,-----Percentage oh.nge in:
,Rntio Juno eolleotions
Net sales
Stocks·
to aocounts outstanding June 1
'Juno, 1038, from
Jan. 1 to "June, 1038( (rom : , . . . - - - - -____
June,
May, Ju ne 30,1938 Juno,
May,
InstaU1037
1038
from 1037
1037
1938
Regular
mont
Rotail trodo:
Dep.rtment stores:
Tot.lllth Dist .. - 4.2
D.llas . .. .. ..... - 5 .0
Fort Worth . .. ... - 2.3
3.1
Houston ..... .. ..
San Antonio ..... - 8. 1
Othor eities . .. .. . - 0 .2
Independent stores:t
Ari.on.......... -17.9
+
-
11.0
15.1
10 .2
7 .1
15.0
0.1
-
3 .4
-
.5
1. 4
.1
3. 0
+ 1.0
- 3.7
- 0.5
- 1.0
- 7 .0
- 0. 1
- 3.2
-14 .3
+
- 8.4
- 0 .9
- 5.3
- 17 .0
- 1.2
- 8.2
30. 0
38. 0
37. 0
39.7
42 .0
30 .6
13 .5
15 .7
0.0
ii :2
14 .8
g~:h~~~co: : ::: =~U ':':'Ts
Texas ........... -11.6
Wholosale trade: t
Maohinery, equipment '" supplies
-33.2
28.3
loxo'pt eleotno.!) -26. 5 + 10.0
Dry goods ...... . - 10. 0 - 2 .9
- 12.8
-34.6 - 1.0
30.5
Groeerios ........ - 1. 2 + 4 .0
- 7. 5
- 11. 6 - 4.7
03.4
Drug............ + 3.4 - 7 .9
3.3
+ 8 .0 +.6
63.9
Hardware .. ... .. - 14.6 - 4.2
- 12.6
- 5.3 + .0
55. 7
- 17. 8
- 10.2 - 7 .0
Eleotrieal supplios -24 .3 - 5 . 1
Tobacco '" prod .. + 8.0 + 2 .0
- 5. 0 - 5. 0
0(4
tCompiiod by Unitod St.tos Departmont of Commeroe. ·Stook. at eloso 01 month.
ment of Agriculture, prospective production and per acre
yields of field crops generally are above the average.
The Department of Agriculture estimated the acreage of
cotton in cultivation on July 1 at 9,960,000 acres for TexaS
and 26,904,000 acres for the United States, the decrease
from a year ago being 22 per cent in each instance. '!1le
Texas acreage is the smallest in thirty years. In other stated
attached to this district the decreases in acreage as compare
with a year ago are as follows : Louisiana, 21 per cent;
Oklahoma, 23 per cent; Arizona and New Mexico, 29 pe~
cent. In r ecent weeks cotton plants have made rapid gro~vt
and are fruiting satisfactorily in most sections but the WIde'
spread insect infestation is still a serious potential menace
to the cotton crop.
With the harvesting of small grains about completed, it
appears that wheat yields in some sections are lower than
earlier expectations. The July 1 forecast by the DepartJflet
of Agriculture placed the Texas crop at 35,397,000 bushe
as compared with an indicated yield of, 39,860,000 bushe. s
a month ago, and an actual harvest of 4,1,690,000 bushels In
f'
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thou ••nd. of doll.T8)
Julv 13,
Jul y 14,
Juno 15,
1038
1037
1938
·
t mon",..
•• . . .. .. . . . . . . •.•. ....• $480,388
$400,488
5477,821
Tot aII oans an d 1Ovos
00
222,404
Total 10aOB. . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. .
225,015
223, 5
140,784
Commorcial, industrial and agrioulturalloans. .....
142,081
130,507
1,050
Open markot paper .. .. . . . . . . . .. . .. .. . . .. .. . . .. .
1,562
2,877
2 a04
Loans to brokers and dealers in .oourities ........ . .
2,723
3,187
13"005
Othor loans for purchasing or carrying •• ourities....
13,725
15,415
20'14 7
Roal ost.ate leans.. .. ...........................
20,633
21, 106
'521
LoaOB to banks.............. ........... ........
445
1,102
434 17
All other lo.ns................ ...... ...........
43,846
30,721
172'080
Unitod Statos Govornment direct obligatio"".........
172,783
189,112
33'023
Obligations fully guarantood by tho U. S. Government.
31,323
28,027
50'224
Othor seourities. . . .. .. .. .. .. .. ........ ...... .....
51,267
50,344
98' 445
Roservos with Foderal Rosorve Bank. ......... . .....
102,007
115,908
222'503
Balanoes with ~omestlo banks..... ... . . . .. . . . . . . . . .
218,931
157,481
400:802
Demand deJlOS,ts- ndJu.tod t . . . . . . . . . . . . . . . . . . . . . .
406,000
402,303
131 r.67
Time dejlOS'f.o .... . .... .. .. ...... ............ .. ...
130,304
121,700
25'03 2
25,016
10,027
180'833
United States Govornment doposits .. ... ............
Interbank doposits.. ... .. .. .. .. .. .. .. .. .. .... ... ..
10~123 4
1 8~ 155
Nono
Borrowing. from Federal Rosorve Dank . . . . . . . . . . • . .
N ono
onc
c..b
tInoludes aU d.mand doposits other than interbank and United Statos Governmont, less
items roportod as on h.nd or in proo,,"" of oolleotion.
+
SAVINGS DEPOSITS
June 30, 1038
,
Number of
ro~rting
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1023-25 .nrage -100)
With seMonal adjustmont
Total E10venth Diat..
Dall.. .. .. .. . .. .. ...
Fort Worth ........ ..
Houston .. .... .......
San Antnnio .........
Sales-June,
1038
1037
101.1 100. 0
102 .4 107.0
108. 1 109 .7
01.7
88.5
83.0
01. 2
Stocks-June,
1938
1037
03.5
07.0
62.0
64. 1
63.2
67.9
42 .8
46.4
60.3
03 .2
Bonumont .. ............ •
D. II .......... ... .......
EI Paso . .... .. .... .. ....
Fort Worth ..............
Galveston ...............
Houston .......... . ......
Port Arthur . ... .. .... . ..
San Antnnio ... ..... .. . ..
Shroveport . . .... . ..... . .
W.oo ........... .. ......
Wichita F.II.............
All others ........... .. ..
Without oe.. onol adJustmont
Snlos-June,
1038
1937
00.0
04.3
80. 1
03.1
101.6 103. 1
97.2
03.8
81.0
80.4
Stooks-June,
1038
IOa7
59. 7
63.0
60 .4
61.5
60 .0
64 .5
38.5
41.8
53 .1
65.0
Totn1. ..........
CONDITION OF THE FEDERAL RESERVE BANK
(In thou. nnde of doUaTll)
July 15,
June 15,
1038
1037
$105,500
Total o..h reserves . ............................. . $200,651
323
024
Discounts for mombor banks ...................... .
814
1, 237
Industri.1 advnnoes .................... .......... .
16
90
Bills bought in the open market ..... ............. ..
84,063
08,034
United St.tos Government seeuritios .. .••. .. ....... .
100,504
Total earning nssets ........... ...... ........... ..
80,116
182,058
171,007
Member bank roservo deposits . . ......... ....... .. .
01,050
Foder.1 Reserve notos in actu.1 oiroulation ...••• . . . •
75,029
91
302
Commitmonts to mako industri.1 adv.ncos ......... .
June 15,
1038
$100,847
533
828
10
07,283
08,660
166,108
76,776
02
Gr ...
domand
June,
1930 ........... S 943,180
June,
1037 .. .... ..... 1,037,335
February, 1938 ......•.. .. 1,113,910
Mareh, 1938 ........... 1,006,362
tl.ril,
1938 ........... 1,074,855
.y,
1938 ........ . .. 1,073,302
June,
1938 . . ... . ..... 1,077,580
v
Time
S106,703
201,800
216,344
218,188
217,042
210,450
220,091
GrOM
demand
$540,958
573,110
006,222
601,354
502,050
590,104
605,323
Timo
$108,005
110,025
11 0,587
121,102
120,806
121,153
121,045
Gross
dom.nd
$402,181
464,225
507,607
405,008
482,700
474,138
472,263
110
Number of Amount of ~
saving.
.avings
June 30,
dopo. itor.
doposits
1037
0,602 S 3,794.529
2.3
20,220,983
00,615
+ .7
10,160
8, 171,704
2.3
38,022
13,503,057
4.7
11,560,331 + 5.5
18,304
71,852
20,088,211
+ 2 .0
2,623,770 + 8.0
0,122
23,751
18,013,475 + 8.5
24,702
11,300,582 + 1. 8
0,224
4,864,560 - 5.0
7,278
3,005,300 + 6 .0
59,255
20,573,571 + 4.0
+
+
+
375,106
$162,531,102
+ 3.4
Moy SI,
1038
.6
.1
1.2
].7
.0
1.0
.3
2.4
.4
.5
2.1
1.0
+
+
+
+
+
_+
+
+
+
+
+
~
+ 1. 0
DEBITS TO INDIVIDUAL ACCOUNTS
(In thoueande of doll.T8)
88
potg.ohnnlb
Juno
Juno
Potg.ohange
Mny
over IDOo
1938
1037
over year
1938
_ 4.0
Abilene................. S 7,034
S 0,377
- 15 .4
S 8,346
+12.2
Austin. ......... ........
31,872
20,081
7.4
28,400
+ 1.4
Beaumont. ............ ..
22,450
25,501
- 12.3
22,142
_ 5.0
Corsio.na...............
2,772
3,262
- 15. 0
2,017
+ 0.9
DaUast..... ... .. ... ....
227,403
242,306
- 6.2
212,808
_.8
EI P..o.... .... .. .......
24,324
27,010
- 10 .0
24,527
+ 14 .0
Fort Worth..............
87 ,157
100,915
- 13 .0
70,434
+ 14 .9
G.lveston.. ..... .... ....
25,704
20,048
- 1.0
22,448
+ 2.0
Hnuston ....... . .........
108,222
218,350
- 0.2
102,610
_ 4.1
8,090
8,353
+ 7.7
0,439
1.2
Port Arthur ......... ....
Roswell ...... .. ....... ..
S,088
3,548
+12.4
4,038::;: 4.1
S.n Antonio........ .....
00,817
73,357
- 4.8
06,601
+ 1.5
Shreveport. .. ..... ......
41,470
40,317
- 10.4
40,879
+10.303
Texark.na·.. ......... ...
7,023
7,330
- 4 .3
5,S89
+
Tucson........ .. ....... .
11,810
11,640
+ 1.5
11,815
+ 2:1
'I'yler . ........ .. ........
11,418
15,428
-26. 0
11,182
+ 6.a
W.co. .. ................
11,043
13,510
- 11.0
11,230
_ 6.5
Wiohita F.II.............
16,680
18,582
- 10 .2
17,648
___ -
+
GROSS DE MA ND AND TIME DEPOSITS OF MEMDER BANKS
(Averago of d.i1y figures-in thous.nde of doll.T8)
Combined total
Resorve oity banks
Country banks
,
anks
3
8
2
3
4
10
2
5
3
3
3
70
'n
Percentago el!an~oo~
savings dOllOS~
~
Time
$88,088
01,175
00,757
97,080
07,046
08,306
00,046
---
---
---
---
+ 5. 4
Tot.l. . .. . . . . .. . $811,100
$880,641
- 7.0
$760,452
D' trio\'
·Inoludes tho·figures of two banks in Toxarkana, Arkansas, looated in t~lO Eighth . ~od ba j '
tFigures for Dallas include debits of five additional banks. D.ta preVIOusly pubhs
been rovised baek througb January, 19S7,
(
MONTHLY BUSINESS REVIEW
a
1937 Th ... I .
.
th
e ImtIa estImate of the 1938 oat crop is larger than
According to the Department of Agriculture a sharp inI·e h f37 production for Texas and Oklahoma, and only crease in hog production during 1938 is indicated for the
s Ig t Y smaller for Louisiana.
five states attached to the Eleventh District as the number of
As a consequence of an increase in the acreage planted to pigs saved from the spring crop was 12 per cent greater
cord an,d a higher estimated yield per acre, the indicated than in the spring of 1937, and the estimated number of
p;o uctIon of this crop in the principal producing states sows to farrow during the fall of 1938 is 9 per cent larger
ti~~ed to the Eleventh District is considerably higher than than a year ago. Pigs saved from the spring crop in the
s~ . The prospective production of hay crops is also sub- United States totaled 43,384,000 head, which is the largest
g antIa ly larger than last year. The Texas rice crop is in number in five years.
tiene[all y . good .condition, and growth was stimulated by
Receipts of livestock at the For t Worth market declined
p ~e y rams dunng June. The indicated production of Irish seasonally during June, but they were in excess of the large
thO ato~s in Texas is 15 per cent smaller than in 1937, but volume in June, 1937, due principally to heavy marketings
s ere IS a substantial increase in the prospective yield of of sheep. Although receipts during the first half of 1938
Weet potatoes.
were smaller than the record total in the corresponding
period of 1937, they were maintained well above those in
Ldivestock
ranges
in
most
sections
of
Texas
continued
in
g
c d"lhon durmg
'
cu00 d?n
June, and much improvement oc- other recent years. Cattle prices, which had shown an irregb ro e m the western par t of the district where heavy rains ular downward trend in June, turned noticeably upward in
tt e the extended drouth that had prevailed in that sec- the first week of July when several classes reached the highth~n.
Ho~ever, subsoil moisture is still deficient in parts of est level in 1938; in the subsequent week, however, the
S
market was depressed somewhat by heavy receipts. At the
grl .sectIon and additional rain is needed to assure summer
So ua~hng. Furthermore, there are a few locally dry areas in middle of July hogs were bringing the best prices since last
Li
art northwest Texas and in southwestern New Mexico. October, following an almost steady advance in quotations
ticViitoc in Texas continued in good condition and in prac- in the preceding two and one-half months.
N a al~ areas grass-fat cattle are available for market. In
Receipts from the sale of principal farm products by
thew, eXICO and Arizona livestock have taken on flesh since farmers in the five states attached to the Eleventh District
elf:~~~filiement in range conditions, but they still show the increased II per cent from April to May and exceeded the
duro ng h e re?ent drouth. Losses of cattle were very small . total in May last year by 2 per cent. Although cash income
tha:
t e sprmg and early summer and reports indicate from crops was 2 per cent lower than a year ago, receipts
a good spring calf crop has been dropped.
from marketings of livestock and livestock products was 4
per cent larger due chiefly to the heavier sales of dairy and
CROP PRODUCTION
poultry products. Government benefit payments to farmers
(In thousands of units)
declined 24 per cent from April to May, but the total of
, , - - - Toxas -----v- Eloventh Distriet _____
.
Crop
Estimated
Esti mated
$10,028,000 was almost twice as great as in May, 1937. Total
Wlnte h
Unit
1938
1037
1988
1037
Corn r W eat. ...... . . . .. Bushols
35,397
41,600
36,290
42,807
income including Government payments during the first five
g
r:::::
..
::
:::
::::::::
:
u
85, 104
72,048
101,106
86,945
months
of 1938 amounted to $275,100,000, which was about
T '. '. .
34,875
30,432
37,510
33,087
~tno hay " . " .. . .. "" .
13,250
12250
13 250·
12250·
the same as that in the corresponding period last year.
IrISh Pota~c;,' . . . . . . . . . . .
Tons
1,042
'831
1:430
1:211
SWeet PotatoeS······ " . . . Bushels
2,050
3,456
3,763
4,208
INDUSTRY
"Toxas onl""""'::
"
5,100
3,744
13,905t
lI,364t
SOunc Y. tLoUlSlnna, Oklahoma and Texas.
Construction contracts awarded in the Eleventh District
E: g~mitcd t~totes Department of Agrieult uro. Dnto for Elovonth District dorived
during the first half of 1938 were 26 per cent larger than in
os Imntes by stntes.
the same period of 1937. Although the trend of awards in
the past three months has been downward the total for the
CASH FARM INCOME FROM SALE OF PRINCIPAL FARM PRODUCTS AND
second quarter was larger than that for the preceding quarGOVERNMENT BE NEFIT PAYMENTS
(I n tbousands of dolla..)
ter. Throughout the six months awards for Public Works
~Mny,1 938---v--- Totol receip ts - --....,
construction have been much heavier than a year earlier,
eOOlpts from :
GovernJon. 1 to Moy 31
, C
.
'"" ment
May
May ,~----....,
while public utility construction was considerably lower.
Arizona
rops Ll vestook " payments
1938
1937
1038
1037
4 $ 2,057 $ 133
Non-residential building, which was unusually heavy in the
~Ui'i • .;a'.'.'.:: : $
$ 3,214
$ 3,1 63
$ 22,080 $ 17,708
Okl, \Moxieo ...
'10~
l,~3
017
5,000
7,728
31,373
30,543
first quarter due chiefly to the expansion in commercial and
Te~~~~::... 2,720 0:72t
2,m
&~~
~:~~~
M:~~~ l~:~~ industrial building, declined considerably in the second
T
'" ~
23,358
5,722
37,201
31,010
156,578
150,026
quarter and was lower than in that period last year. After
otal
$1517
-- -- -"Inelu'd' " . _' 4 535,102 510,028
S60 304
$54092
$275,108 $275,425
declining to a low level in December, ' 1937, residential
os
reOOIPts f
"
SOtlltcE_ U 't rom . ale of Iivestook and Iivestook produots.
building showed a steady expansion during the first five
- Dl ed States Dopartment of Agriculture.
months of this year and in May reached the highest level in
several years. While awards declined moderately in June,
FORT WORTa LIVESTOCK REOEIPTS
(Numbor)
due largely to seasonal factors, the month's volume was 26
Juno
Juno
Chango over
May
Chango over
per cent in excess of that in the corresponding month of
1988
1037
yoar
month
1038
86,040
1937. From the available information, it appears that loan
11 2,1 64
74,824
- 25,218
+ 12,122
31,404
35,000
26,078
+ 4,720
- 3,686
applications for the construction of houses continued to ex18,328
17,655
24,447
- 0, 119
+ 073 325,272
242,198
145,202
-83,074
+ 00,030
pand during the month. Residential construction thus far in
1938 has been confined principally to one-family houses.
COMPARATIVE TOP LIVESTOCK PRICES
The most active demand has been for houses in the moderate
(Dollars per hundredwoight)
and lower price ranges and has been stimulated by the lower
May
Ju no
J une
construction costs, and the smaller initial payments and
~eor fttcors
1938
1038
1037
$11 .85
59.50
monthly installments made possible through the Federal
li~r~;: :tcCn;:::; :::::::::::.......... ".... .... . $8.05
7.05
8. 00
Dutch. nd yearhngs
... . .. - ............ . .
7.50
Housing
Administration amendments.
0.
75
12.00
9.50
0.25
6. 75
8. 00
The
valuation
of building permits issued at fourteen prin8.25
0.00
8 .25
8. 00
11.60
... ... . ..... . . ... ........ . ...... 8.00
cipal
cities
·
i
n
this
district, after declining sharply in May,
8.00
10 .25
7.50
i
f
i'
k
Kt
}n
~:;:::::: :: :: :>: :::;:. :;;;:: ';::::'::::.::.
4
MONTHLY BUSINESS REVIEW
increased during June to the high level that had obtained in
March and April. While about 45 per cent of the total value
of permits issued was accounted for by the city of Houston,
several other cities showed sizable increases in comparison
with both the preceding month and the same month last year.
In the first half of the year the aggregate value of permits
issued was 13 per cent in excess of that in the same period
last year, with 10 of the 14. reporting cities participating in
the increase.
During June there was a further curtailment in the production of crude petroleum in the United States and refinery
operations, as reflected by crude oil runs to stills, declined to
the lowest level in more than a year. The output of both
crude petroleum and gasoline during June was below demand and resulted in substantial withdrawals of these
products from storage. From April 30 to July 2 crude oil in
storage showed a decline of 5 per cent and gasoline stocks
were reduced by 12 per cent; at the end of the period stocks
of crude oil were about 6 per cent lower than a year earlier
but the supply of gasoline was 8 per cent higher. By the end
of June a considerable improvement in the statistical position of the industry had taken place and in consequence
proration officials in some leading producing states increased somewhat production allowables for July. In Texas,
the Saturday shutdown was abandoned and basic allowabIes were readjusted to permit a substantial increase in
production and allowables were also increased in New Mexico. As a result production in the Eleventh District averaged about 1,561,000 barrels daily in the first three weeks of
VALUE OF CONBTRuc'rroN CONTRACTS AWARDED
(In thou. ond. of dollara)
June
June
May
January 1 to June 30
1938
1037
1038
1938
1937
Eloventh Dlstriet-total... S 12.826
$ 11,959
l 13.680
$ 80,061
$ 64,257
Residential. . . . . . . . . . . .
5.507
4,368
6,038
27,754
26,625
AU other..............
7.319
7.591
7.642
53,207
37,632
251.~06
317,742
283,156
United States"-total.....
1,297,606
1,493,236
Residential. .. . . .. .. .. .
85.682
92,978
83.153
399,038
516,307
All other. . . . . . . . . . . . . .
165.324
224,764
200,003
898,568
976,920
"37 ,tates e""t of tho Roeky Mount.in••
BOURCE: F. W. Dodgo Corporation.
June. 1938
BIDLDING PERMITS
I1orcantago ohange
Pore.ntago
valuation from
Jan. 1 toJune30,1938 ehange
v
Amarillo.......
Au'tin.........
Beaumont......
Corpus ChriBti..
DaU",,".. ......
EI Paso.. . .. .. .
Fort Worth.....
Galveston......
Hou.ton........
Port Arthur....
Ban Antonio....
Shreveport.....
Waoo.. ........
WiohitaFaU....
r No.
Valuation V'June, 1937 Mny, 1938
52 S 151,941
+ 48.1
+28.7
214
390,278 + 2.9 + 4.8
135
108,939 6.6 + 10 .3
133
324,743 - 20.4 + 76 .8
673
958,113 + 5.5 - 15 .5
122
184,556 + 4.2 +69. 1
227
620,052 - 21 .3 +78.9
156
80,003 + 36.7 - 8. 1
538 3,544,245 -\- 135 .8 +09.4
134
80,614 + 16 .8 - 7.5
266
980,331 +149.2 +05.6
141
105,076 + 50.9 - 19.9
50
70,107 - 40.5 -24.5
37
103,740 +234.6 + 7.1
Total ...... 2,878 $7,800,208 -\- 40.8 -\-48.6
"Includes Highland Park nnd UniYeroily Park.
No.
Valuation '
218 $ 1,108,703
1,168 2,987,824
792
686,444
886 1,709,407
4,032 6,053,509
482
728,813
1,272 3,183,661
971 1,325,200
2,650 13,788,265
789
856,185
1,752 2,700,605
858 2,906,051
324
511,702
303
889,230
16,566 $30,035,730
f~~~af~37
+ 148.9
+ 40.2
+ 10 .8
8.8
7.2
+ 1. 0
- 33.5
+ 08.3
+ 23 .7
+ 53.1
+ 1.0
+ 78.7
- 14 .3
+128.9
+ 12 .8
BTATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
, - - - - T e x a s - - v - - U n i t e d Statcs~
August 1 to June 30
August 1 to June 80
This senson
Last season
This Beason
Last Beason
Cottonseed received at mills
(tons) .................... .
1,703,795
017,671
6,550,025
4,484,201
Cottonseed orushed (tons) . . " .
1,572,034
921,774
6,201,133
4,460,141
Cottonseed on hand JUliO 30
(tons) ...... . . .......... .. .
IM,638
5,773
301,367
45,841
Produotion of products:
Crude oil (pounds) ........ . 404,100,214
262,858,345 1,920,514,856 1,350,580,063
Cake and meal (tons) . .... . .
735,537
432,658
2,774,723
2,010,722
HuUs (tons) .............. .
412,167
243,600
1,594,290
1,132,159
Linters (running bales) ..... .
325,002
109,324
1,430,286
1,117,479
Stocks on bond June 30:
Crude oil (pounde) ........ .
3,898,004
684,046
18,063,100
5,382,503
Coke and mool (tons) ...... .
53,333
12,703
260,168
73,190
Hulls (tons) . ... ....... .. . .
32,445
0,690
155,781
64,240
Linters (running bales) ..... .
113,674
16,503
519,717
86,129
BOURCE: Bureau 01 Census,
July, which was 15 per cent higher than the daily rate in
June but 4. per cent lower than that in July last year. Drill·
ing activity in this district declined in June and i~ ~he fi~'st
three weeks of July; on July 1 there were fewer dnllmg l'lgs
in operation than a month earlier.
There was a noticeable expansion in the domestic demand
for cotton textiles during June and commercial reports indicated that mill sales of cotton goods were greatly in excess of the restricted output. The buying movement was
accompanied by price advances in raw cotton, in co~on
yarns, and in some constructions of cotton goods. R.eflectl~g
the improvement in the demand for cotton goods, mIll actlV'
ity during the month increased counter-seasonally, the adjusted index of cotton consumption, computed by the Board
of Governors of the Federal Reserve System, rising to 88
per cent of the 1923-1925 average. While the June figure
represents an increase of 11 points in the index from the low
level reached in April, it is only slightly higher than the
average for the first quarter of 1938 and is 48 points lower
than the index for June, 1937. Actual consumption of cotton
by domestic mills amounted to 442,74.2 bales in June as
against 4.25,684 bales in May and 680,521 bales in June,
1937. In the first half of July activity in the cotton goods
market slackened considerably but prices remained firm .
Prices of raw cotton declined somewhat in the second week
of the month.
Exports of raw cotton from the United States declined to
a low level in June, the total amounting to 175,878 bales
as compared with 193,002 bales in May and 229,639 bales
in June last year. Takings by all the major importing countries except Germany were lower than in the preceding
month. The export movement through the ports of Houston
and Galveston reflected a counter-to-seasonal increase froJIl
May to June and were considerably larger than a year ago.
CONBUMPTION, STOCKS AND EXPORTS OF
(Balos)
June
Juno
May
1938
1037
1038
Consumption at:
10,248
Telas mill .............
11,728
10,622
442,742
680,521
United Stat", mill •.. '"
425,684
U .B. Stooks-end of month:
In con.uming eotab'mh. 1,416,161
1,540,460
1,585,551
Publio stg., comprcssCi .. 0,696,667
3,000,470 10,058,430
EI/1orts from U. S. to:
niled Kingdom .......
21,641
50,705
26,836
Franoe . . . . . .. . . . .... . .
7,873
8,531
9,069
Italy .. . ............. . .
10,448
39,025
25,700
Germany ..............
16.921
27,901
14.814
Othor Europo . .. .. . . . ..
57,879
32,873
64,303
Japan .... ...... .. . .. . .
30,286
44,061
31,356
AU other countries ......
21,830
25,553
29,955
Total oxport• . ...
175,878
229,039
193,002
COTTON
August 1 to Juno 30
This seasOIl Last senson
107,582
5,806,585
119,821
7,367,068
.. ......
1,521,136
711,452
483,220
646,501
803,621
620,938
525,751
--5,402,700
1,120,026
652,640
387,033
626,511
64P,606
I 522,400
'357,417
-
5,315,73 2
RECEIPTS, EXPOUTS, AND STOCKS OF COTTON AT THE PORTS OF
HOUSTON AND GALVESTON
(Bolos)
August 1 to June 30
Juno
May
Juno
This Beason Last sens on
1038
1037
1038
Receip~q ......... .. .....
48,898
12,760
31,385
3,720,444
2,9~~,~~~
2,871,548
2,8,
Exports ............. . ...
137,273
126,048
86,033
Stoeks, end of month ... .. 1,338,944
1,430,310
570,385
CRUDE OIL PRODUCTION
(Barrolo)
Inor .... or doer..". in daily
June, 1938
overag. produotion fr~
Total
May, 1038
June, 1937
Produotion
_ 6,847
North Tel ..... . .............
3,997,500
133,250
- 22,300
_ 7,873
Wesl TOI"" ..................
6,253,300
208,444
- 22,706
_38,03 8
E""t Telas ....... ... . . .. . . ..
- 132,442
13,643,250
454,775
_ 12,235
Bouth Telas .... ........... ..
- 25,720
6,160,150
205,338
_ 7,117
TellIS Coastal.. ........ . .....
- 10,037
5,042,350
188,078
_72,710
Total Tel......... 35,606,550
-213,805
1,189,885
_ 7,824
New Moxico .......... .......
2,721,550
- 23,882
90,718
_
328
North Louiaiana ...... . .... .. .
2,852
2,369,250
78,975
-
~r~lu~~~
Totol diatriot ...•. . 40,-1'87,350
SOURCE: The Oil Weekly, HOU8toD, Texu.
1,350,578
,
-240,539
--_80,862
I
I
MONTHLY BUSINESS REVIEW
AUGUST 1, 1938
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Complied by the Board of Governol's of the Federal Reserve System)
INDUSTRIAL PROOUCTION
pu ce .. ,
140
,,~
40
"0
30
. It O
'00
90
70
,
20
J'("V\.
.I
\
I V
\
110
00
."
,
,
c
~
,
,
'0
00
DO
'v./
70
,,,.
00
1934
80 .
'-
1936
193'
1937
60
Index of physical volume of production, adjusted
for seasonal variation, 1928-1 925 average 100.
BIy months, Janua,'y, 1984, to June, 1988 .
=
DEPARTMENT STORE SALES
"'_"liT
'"C(JOf
2 00
200
,
00
' 00
' 00
'0
I
)
7\)
J J
d
V\J W VV
-
lDJUSTED r OAU.t.SON"",VARLATIOH
-
WIT HOU T HAIONAI. lo.rUIfIol £N T
11134
,00
\)'<
1937
ID36
00
, ..8
=
Indexes of value of sales, 1923-1925 average 100.
By months, January, 1984, to June, 1988.
WHOLESALE PRICES
". "I"
,
,00
PlIIC('"
110
'0
'00
to
eo
70
~
~
90
---
80
70
eo
00
00
ID34
"136
In 7
,.38
00
Index compiled by the United States Bureau of
Labor Statistics, 1926 100. By weeks, 1984 to
week ending July 16, 1988.
=
EXCESS RESERVES OF MEMSER BANKS
1934
Wednesday figures of estimated excess l'eserves for
al\ member banks and for selected New York City
banks, January 8, 1984, to July 20, 1088,
Industrial activity showed little change in June and increased in the first three weeks
of July, although there is usually a considerable decline at this season. Prices of most staple
commodities advanced sharply in the latter part of June and early July and there were
substantial increases in prices of stocks and lower grade bonds.
PRODUCTION
Volume of industrial production, as measured by the Board's seasonally adjusted index,
was at 77 per cent of the 1923·1925 average in June as compared with 76 in May and an
average of 79 in the first quarter of the year. Available data indicate that in July the index
will show a considerable rise.
In June activity in the textile industry increased, reflecting chiefly a further rise at
woolen mills. Output at cotton and sille mills, which usually declines at this season, showed
little change. Shoe production declined, following a considerable increase earlier in the year.
Automobile output decreased further in June. Sales of new cars continued in excess of
production, however, and stocks were further reduced. Steel production declined seasonally
in June, and lumber production showed little change, although some increase is usual. Output of plate glass rose sharply from an exceptionally low level. Coal production remained
in small volume ill! June, while output of crude petroleum, which had been sharply reduced
in May, declined somewhat further.
In the fint three weeks of July activity at steel mills increased, although there is usually
a decline in that period, and in the third week of the month ingot production was estimated
at 36 per cent of capacity as compared with an average rate of 28 per cent in June.
Crude petroleum output also rose sharply, reflecting chiefly a return to production on
a six·day week basis in Texas. Automobile production declined seasonally.
Value of construction contracts awarded, as reported by the F. W. Dodge Corporation,
showed a decline in June, following a considerable increase in May. Changes in both months
reflected chiefly fluctuation s in awards for publicly-financed construction. Awards for private
residential building were maintained in June at about the same daily rate as in May,
although there is usually some decline at this season, and were iIl/ slightly larger volume
than a year ago. Other private construction work remained at recent low levels.
EMPLOYMENT
Factory employment and payrolls decreased further from the middle of May to the middle
of June. Employment in the automobile, steel, machinery, and clothing industries continued
to decline, while at woolen mills there was an increase and in most oth,er manufacturing
lines changes were small. In trade employment was reduced, while in, other non·manufacturing industries changes in the number employed were largely seasonal.
AGRICULTURE
A total wheat crop of 967,000,000 bushels was indicated by July 1 conditions, according
to the Department of Agriculture. A crop of this size would, be considerably larger than
average and a Government program was announced for loans at close to current market
prices. Cotton acreage on July 1 was estimated at 26,900,000 acres as compared with 34l,500,000 acres last year when, with exceptionally high yield per acre, a record crop was
harvested. Production estimates for most other major crops were slightly under the large
harvests of last season.
DISTRIBUTION
Distribution of commodities to consumers was maintained in June at about the May level,
although a decline is usual at this season. Sales at departmen~' and variety stores showed
little change and mail-order sales increased. In the first half of July department store sales
decreased less than seasonally.
Freight-car loadings showed little change from May to June and were slightly above the
low level of April.
COMMODITY PRICES
Prices of industrial materials, particularly rubber, hides, nonferrous metals, and steel
scrap, showed advances from the middle of June to the third week of July, and there were
also increases in prices of livestock and products. Wheat prices declined, following a rise
early in June. Prices of iron and steel were reduced and there were also declines in some
other industrial products.
BANK CREDIT
Excess reserves of member banks increased substantially in June and the first half of
July, rising to above $3,000,000,000, as compared with $1,730,000,000 just prior to the reduction in reserve requirements the middle of April. The largest gain in excess reserves occurred at city banks through the retirement of Treasury bills and the continued growth of
bankers' balances.
Total loans and investments of reporting member banks in 101 leading cities, which had
increased sharply in the first week of June, declined during the }'emainder of June, reflecting
largely redemption of Treasury bills held by New York City banks and a decrease in loans
to security brokers and dealers. During the first three weeks of July total loans and investments at reporting banks showed little net change.
MONEY RATES
Rates on Treasury bills and notes were slightly firmer in July but continued at exceedingly low levels. Yields on Treasury bonds showed little change.
@FedFRASER