View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Monthly Business Review
OF

-----

THE

Volume 24., No.6

FEDERAL

OF

DALLAS

This COllY is released for publication in morning papers-

Dallas, Texas, August 1, 1939

DISTRICT SUMMARY
The agricultural outlook was improved further by heavy
rains that fell over the major portion of the Eleventh District during June and the first half of July. Although departtnent store sales declined by more than the usual seasonal
~tnount in June, they were about as large as in that month
In 1938. Wholesale distribution was well sustained and the
volutne of sales was 5 per cent in excess of that for the same
tnonth last year. The value of construction contracts awarded
declined further by 15 per cent from May to June due
chiefly to the smaller volume of residential building, but
total awards for all classes of construction during June were
6 per cent larger than in the corresponding month last year.
~aily average production of crude oil declined moderately
In June and then increased somewhat during the first half of
July; nevertheless, production during the six-week period
Was at a substantially higher level than in that period of
~938. At weekly reporting member banks in leading cities
In this district, loans on July 12 were in larger volume than
~t any other time in recent years and deposits rose to an alltllne high level.
BUSINESS
The sales of reporting department stores in principal cities
of the Eleventh District, which had shown a considerable
expansion in May, declined by more than the average seaSonal amount in June, and were in about the same volume
as in the corresponding month of 1938. On a daily average
~:sis sales during June were 15 per cent smaller than in
lV1ay; whereas, the average decline is only 11 per cent. Reflecting the larger-than-average May to June decline, this
bank's seasonally adjusted index of department store sales
declined from 104..7 per cent' of the 1923-1925 average in
May to 101 per cent in June. Although the latter figure is the
sallle as that for June, 1938, it is the lowest recorded for any
onth dUring the current year. The distribution of merchanlse during the first half of 1939 was about 1 per cent larger
tha~ in the corresponding period last year, indicating that
tl~slUess ,for the half-year w,as mai~tai~ed at a higher level
an dunng any correspondmg penod m ten years,
J InVentories at reporting firms were reduced seasonally in
une, and at the close of the month they were in about the
~atne volume as a year ago. The rate of stock turnover thus
ar in 1939 has been at a record high level. Collections on
1itstanding accounts showed the usual seasonal decline from
ay to June, and were at about the same rate as a year ago.
The demand for merchandise at wholesale in this district
~vas Wen sustained during June, aggregate sales of all report~ng firms being only slightly smaller. than in the prece~ing
onth . The decline from May to June lS account~d for ~hle~y
1.Y a sharp reduction in sales at drug firms whlch mamtam
bquo~' departments, but decreases in sales were also reported
~ dIstributors of dry goods and of tobacco, an~ tobacco
h~oduc~s. On the other hand, sales i~ six reportl~g hn.es were
19hel'm June than in May. Sales m all reportmg hnes ex~ept .drugs were larger Lha~l in J un.e, 1938, the increas~s
ngIng from 3.2 per cent m grocenes to 32.4. per cent m
e ectl'ical goods. During the first six months of 1939 the
volul1le of merchandise dish'ibution through wholesale chanels exceeded that in the corresponding per~od of 1938
Y about 4. per cent. Farm machinery and equlpment fixms

i

BANK

RESERVE

JUIY 30

recorded a decline in sales for the six-month period, but
business in this line of trade has shown considerable improvement during the past two months. The dollar value of
inventories at reporting firms showed little change from
May to June, but at the close of the latter month stocks were
in excess of those a year earlier for the first time since November, 1937. Collections at reporting firms continued at a
higher rate than a year ago.
The Bureau of Business Research of the University of
Texas reported that employment in Texas increased further
by 0.6 per cent in June and was 2.9 per cent larger than a
year earlier. Payrolls showed a rise of 0.5 per cent from
May to June and exceeded those in June last year by 1.9
per cent.
Commercial failures in this district increased moderately
from May to June and the total for the latter month was
double Lhat in June last year. Liabilities of defaulting firms,
although registering a further substantial decline from the
preceding month, were considerably l.arger th~n i~ June,
1938. DUll & Bradstreet reported 30 msolvencles m June
this year, having an indebtedness of $265,000. During the
first half of 1939 the number and liabilities of commercial
failures were the largest for any similar period in several
years, and they exceeded those in the corresponding six
months of 1938 by 44 and 54 per cent, respectively.
AGRICULTURE
Heavy rains in most sections of Texas during June and
the first half of July were very beneficial to, growing crops,
and agricultural prospects showed a further improvement.
The moisture supply in most sections of Texas is now generally adequate for current needs, but there are some localities where additional precipitation is needed to overcome
the accumulated moisture deficiency. In much of New Mexico and in southeastern Arizona the shortage in rainfall and
high temperatures have resulted in drouth conditions and
general rains are urgently needed for ranges and crops.
According to the Department of Agriculture, the area of
cotton in cultivation in Texas on July 1 was 8,980,000 acres.
This figure represents a decline of 2 per cent from that of a
year ago, and is less than two-thirds the average acreage for
the 10-year period 1928-1937. If the acreage abandonment
this year approximates the average of 3.1 per cent, the area
harvesLed will be the smallest since 1905. Cotton acreage in
cultivation on July 1 was 1 per cent larger than a year ago
LOANS AND INVESTMENTS OF REPORTING MEMBER BANKS
""l.UON5

or

ELEVENTH f'EDEnAl. RE:.£RVE DI STRICT
we .:at Y rlCl.f\ts

DOLLARS

'00

I.ClLLO

3>0

h

i

300

i\

frrlitr
roTAL LOANS

2>0

200

cotvw£.RCIAL . INOUSTRIAL

•
1
>0

b

1
00

Vi
----

AGAICULTURAL LOAN

ll-H-H

JfMAMJ,JA'OUO

,--'

1--1

u s. COY".

~T

OBLIGATIONS

_'..I'~ 0

--:--"j-~,-~--!.----y
~I-'

1'~38--"

r

...

•

...

J

J

• •

200

1
>0

LL
J

300

.,1-- .

INVESTMENTS

~mtt(~

1

~nl1nnt

TOTAL

o

N

....
0

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

1
00

MONTHLY BUSINESS REVIEW
2
The Texas rice crop made a poor start but it has shown a
in Louisiana; 2 per cent in New Mexico; 7 per cent in Oklaremarkable improvement since the rains, and the prospective
homa; but it was 11 per cent smaller in Arizona_ The estimate for the United States was placed at 24,943,000 acres, per acre yield is as high as that last year. Estimated producwhich is fractionally smaller than a year ago and the lowest tion is slightly larger than a year ago due to the increased
in 40 years. Weather conditions during the past several weeks acreage. The acreage planted to peanuts this year is larger
have been generally favorable for the growth and cultiva- than in 1938 and the condition of the crop on July 1 was
tion of cotton in this district with the result that the crop slightly better than a year ago.
made good progress in most sections. Although the crop is
Livestock ranges in Texas improved further in June, but
later than usual and the plants are in all stages of growth, drouth conditions continued over much of the Edwards Plathe major portion of the crop is fruiting rapidly. Picking teau, west and south-central sections of the State. Toward the
has become general in extreme south Texas. Insect infesta- middle of July heavy rains fell over most of the drouth area
tion is increasing in Texas, but reports indicate that the dam- and range prospects are greatly improved. Ranges dete·
age to the crop thus far has been generally light.
riorated sharply in New Mexico and southeastern Arizona
The Department of Agriculture estimated the production due to the high temperatures and lack of ~oisture, and conof wheat in Texas at 29,390,000 bushels on July 1 which is ditions in some portions of these states are becoming acul e.
about 1,500,000 bushels smaller than the estimate a month Although livestock have held up fairly well in these states,
earlier and compares with a harvest of 35,046,000 bushels they are beginning to show the effects of poor ranges. In
in 1938. The decrease in prospective production during June Texas, cattle made good gains except in the dry areas, and
resulted from rains in the heavy producing section of north- prospects are now favorable for a good supply of grass-f~t
west Texas which delayed the harvest and did considerable cattle but the movement will be later than usual. The condl'
damage in some areas. Winter wheat production in New tion of sheep declined and lambs have not made satisfactory
Mexico is substantially larger than a year ago, but a smaller growth. Since the July rains, however, prospects are much
crop of spring wheat is in prospect. The indicated pro.duction improved.
of oats in this district is 11 per cent smaller than m 1938
The demand for wool in this district slackened somewhat
due chiefly to the prolonged drouth during the spring months in June, following active sales at advancing prices in May,
that caused an almost complete crop failure in some sections. and prices apparently declined somewhat from the level atExceptionally heavy yields, however, were obtained in some tained early in the month. Trade reports indicate that buY'
parts of central and north Texas.
ing became more active around the middle of July and
The production of corn in Texas is forecast at 82,790,000 prices again strengthened.
Cash farm income from the sale of principal farm prod·
bushels, which is about 7,000,000 bushels larger than last
year's harvest. The increased production is due to the larger ucts in the five states attached to the Eleventh District in'
acreage and the higher average yield. Although the crop is creased further by 6 per cent from April to May, but the
very poor in south Texas on account of the drouth during total for the latter month was 14 per cent smaller than in
the growing season, the condition of the crop is above the May, 1938. The gain over the preceding month was due to II
average in most other sections and some areas report that sharp increase in receipts from the sale of livestock and live'
yields are expected to be unusually large. The prospective stock products, which more than offset a 27 per cent decrease
production in Louisiana, although smaller than in 1938, is in income from crop marketings. Despite the decline from 11
higher than the average. The indicated production of tame year ago in receipts from the sale of farm products, agg re·
hay in this district is slightly larger than in 1938 and con- gate income, including Government benefit payments, eJ(:'
ceeded that in May, 1938, by 11 per cent. During the month,
siderably above the 10-year average production.
Government payments to farmers amounted to $23,786,000,
WHOLESALE AND RETAIL TRADE STATISTICS
which is the largest amount paid out in any month since the
_ - - - Percent.ge ch.nge in:
,Ratio June colleotiolls
Net sales
Stocks"
to .ooounts outst.nd·
fall of 1933, and is more than double that in May last year.
r--------v-- 1939 from ,r,- . .ing. June .1- - - During the first five months of 1939 income from the sale
r June, 1939 from
Jan. 1 to
June,
. ..:
Junc, M.y, June 30, 1939
June,
May,
Instalof farm products was one-fifth smaller than in that period
Retail trade:
1938
1939
frem 1938
1938
1939 Regular
ment
Department stores:
of 1938, but total receipts including Government payments
13 .8
38.9
Total 11th Dist .. .4 - 18.2
+.9
+.4 - 6.7
16.4
37.3
Dallas .......... - 1.3 -21.6
-.3
+ 2.4 - 10 .2
were only 7 per cent smaller.
10.4
35.8
Fort Worth ...... + 5.2 -14.4
+ 2.2
- 1.6
Houston ......... - 1.4 -11 .8
+ 1.7
+ 5.3
San Antonio ..... - 4.8 -24.1
-.2
- 4.4
Other cities ...... + 1.9 -15.2
+ 2.7
-.8
Independent stores:t
ArIZona ......... + 6.0 - 5.4
.1 -10 .0
Oklahoma ....... New Mexico ..... + 5.6 + .3
Telas ........... + 8.1 - 9.1
Whol esale trade:t
Maehinery. CQp't &
su pplies (elcept
electric.I) ....... +14.9 +7.4
- 11 .2
+ 7.0
Dry goods ........ + 5.4 - 3.9
+ 4.7
+ .4
Groceries ......... + 3.2 + 4.5
+ 1.7
- 1.5
.6 -22.2
+ 1.9
Drugs . ........... + 2.3
+15.2
Hardware ........ +12.6 +.2
Eleotrical Supplies. +32.4 + 6.5
Tobaeoo&prod's .. + 3.4 - 2.6
+'4:8
Surgical eqp·t..... +22.2 +10 .0
......
Automotivesuppl' +30.0 +18.2
+10.4
- 4 .8
.Stooks at elose of month. tCompiled by United States

- 3.6
-12.0
+ 6.3
- 7.2

39.2
43.7
40.3

12.3
Crop

'Estimated
Jnly 1, 1939
29,390
Winter wheat. . . .. . . ... . . . . . .. . . . .. Bushels
Corn ...... , .... . .. . .. .. .. .. .. ..... Bushels
82.790
Oats.... . .. .. .. .. . ........ . .. .. ... Bushels
32.660

+2.9
- 5.1
+ 5.3
.9

69.4
39 .2
89.3
67 .6
62 .7

86:4

.. ....
58.0
- 7.8
64.5
Department of Commeree.

Q

Total Eleventh Dist..
D.llas ....... .. .... .
Fort Worth ..........
Houston ............
San Antonio.. .......

Salee-June
1939
1938
101. 0 101.1
101.7 102 .4
114.1 108.1
90.2
91.7
79.9
83.6

Sales-June
1939
1938
89.9
90.0
88.5
89.1
107.3 101.6
95.6
97.2
81.9
78.3

Unit

~i~!~~ :::::::::::::::::::::::::::: R~:~~l: 1~:~~~
Tame hay. . . . . . . . . . .. . .... . . . . . . . . Tons
1,024

INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1923-25 avernge l00)
With seasonal adjustment
Without seasonal adjustment
r

CROP PRODUCTION
(In thousands of units)
Texas

ii:1i

---

Stoeke-June
1939
1938
60 .2
59.7
62.1
60.4
69.8
59.8
42.6
38.6
51.3
63.1

Eleventh Dis~

&timated
1938 July 1, 1939
35.046
30.624
75.648
97.640
36.920
35.367

&~~~
1,012

u:m;

10S8
36.020
91 ,6 77

39,6~~.

li:~Jt

1,430
, 18
Irish potatoes..... ..... ... .. ...... Bushels
2,606
2.950
3.380
a'~601
Sweet potatoes. . . . . . . . . . . . . . . . . . . .. Bushels
4,200
4,350
13,552t
12. d
.Texas, Oklahoma, New Mexico and Arizona.
tToxas only.
tTexas. OklahomA ~u
Louisiana. Other data for Eleventh Distriot derived from estimates by stutes.
SOURCE: United States Department of Agriculture.
CASH FARM INCOME FROM SALE OF PnINClPAL FARM PRODUCTS A~V
GOVERNM ENT BENEFIT PA YMEN'I'S
(In thousands of doll.rs)
, - - - - May, 1939---..
Reoeipts from
Govern- ,
Total receipts
./'
, - - - - - - _ , ment
May
May
Jan. 1 to May 31
Crops Livestoek" p.yments
1939
1938
1939
193 8
Arizona ....... $ 378 S 1,790 ' ..537 $ 2,705
$ 3,214
$ 18,229 $ 22'~!:
Louisiana.... . .
3,270
2.051
3,368
8,680
5,669
30.506
31'91 9
New Mexico...
116
1,876
421
2.413
2,039
10.540
11'792
Okl.homa. . . . .
1.835
7,621
5.407
14,863
12,271
64.366
53, 618
Telas.... .. . ..
3,659
20,695
14,053
38,407
37.201
143.111 ~
Tot.l ... .. S 9,258
$34,033
$23 .786
$67.077
560,394
·Includes reeeipts from tho sale of livestock and Iivestook product•.
SOURCE: United States Department of Agriculture.

S256.752

$275,Jo8

\'

MONTHLY BUSINESS REVIEW
8
FINANCE
able through Federal Housing Administration insured loans.
Total earning assets of the Federal Reserve Bank of Dallas Thus far in 1939 non-residential building has averaged
~eclined $6,181,000 between June 15 and July 15, after hav- about 6 per cent smaller than in the comparable period of
lng remained comparatively stable during the preceding two 1938, reflecting principally a reduction in awards for commonths. The decrease during the past month reflected chiefly mercial and manufacturing buildings. The volume of Public
the periodic reallocation of the System's holdings of United Works construction has been maintained at about last year's
States Government securities among the several Federal Re- level. Although the value of contracts awarded for public
serve banks. Member bank borrowings from this bank in- utility construction during the six-month period was small
creased moderately during the period, but industrial ad- in relation to that for other types of building, it was about
CONDITION OF THE FRDERAL RF;SIl,RVE BANK
vances showed a further slight decline. Daily average excess
(In thou.ands of dollars)
reserves of member banks in this district, which had shown
July 15,
July 15,
June 15,
1030
1038
1930
an increase in May and the first half of June, declined someTotnl onsu reserves. . .... ..... . ..... . .. . ......... . $230,650
$200,651
$236,818
what in the subsequent two weeks, averaging about 4,7 per Discounts for member banks.. . . . . . . .. . . •.. . ..•. . ..
846
323
305
discollnted ........
....... .. .... . . . ..
50
None
None
?ent of required reserves. Federal Reserve notes of this bank Other bills adv"noes .... .. .. .............. ...........
Industrilll
.
667
814
591
16
16
16
1n actual circulation increased slightly during the month Bills bought in tho open mnrket... . . .. . . . . . ... . .. ..
United States Government seourities. . . . . .. . . .• .. .. .
06,025
84,063
102.282
ended July 15, and on that date the total of $76,595,000 1'otnl enrning nssets ............... . . ..... .. ......
07,013
86.110
103,104
Membor bonk reserve deposits...... ..... ..........
185.032
171,607
187,742
exceeded that of a year ago by about $1,000,000.
Federal Reserve notes in actual oiroulation. . . . . . . . . .
76,505
75,620
75,840
None
91
None
. FOllowing a slight decline in May, loans at weekly report- Commitments to make industrial advances. . . .. . ....
CONDITION STA'1'IS'1'ICS OF MEMBER BANKS IN LEADING CITIES
lng member banks in leading cities of the Eleventh District
(In thousands uC dollars)
July 12,
July 13,
June 14.
~urned upward in June and continued to expand in the first
1038
1030
1030
a1£ of July. The increase of $3,4,00,000 in loans during the Total loans nnd investments ... . . ............ . .... . 5513,540 $480,388 5511.524
256,440
225,015
253.051
Total loan............. ..... ... . ............ .. .. .
~our weeks ended July 12 was larger than in the correspond165,476
160,856
142,081
Commercinl, industrinl nnd agriculturallonns .. ... .
1,562
1,652
1,160
Open market paper .... . ...... .... ...... .. . . ... .
ln~ four weeks of 1938, with the result that the margin of
2.723
5,125
4.400
Loons to bruke", and deniers in secllrities ......... .
13,725
13,582
raln over last year widened further during the period. Total
Other loans Cor purcbnslDg or carryiug seourities ... .
14,837
21,061
20,633
Hcnl estate lonns ...................... . ....... .
20,953
oans on July 12 aggregated $256,4,4,9,000, which was $31,445
346
302
Lonn8 to banks ...... . . .... .. . ................. .
44,827
43,846
45,833
All other loal18.. . ..................... . ...... . .
:00,000 larger than a year ago and the highest for any report United States Government direct obligations .. . ... . . . 158,185
172,783
158,064
31,323
41,765
$ ate in recent years. Investments of these banks declined Obligatinns fully guaranteed by United States Govt .. 44,078
61,267
57,744
54.828
Otherseouri ties .............. . .................. .
. 1,380,000 during the four weeks and on July 12 their hold- Reserves with Federal Reserve Bank .............. . 121,714
120,656
102,007
251,046
218,931
251.265
Bnlances with domestio banks . ....... ... . . ........ .
lngs were only $1,700,000 larger than a year ago.
458,737
406,069
451,843
Demand deJlOSits-adj usted" .. ................... .
136,401
135,207
130.304
Time depoSIts .... . . . ....... . . ....... .... ........ .
£ Deposits at reporting banks increased further during the United Stotes Government deposits .. . .......... .. •. 31,115
25,016
33,480
..
OUr weeks ended July 12 and were at a new high level at Interbnnk deposits .... . ................ .... ... .. .... 21~~~~
10~~~!
21~~~~
Borrowings from Federal Reserve Bank .•. . .....
th~ end of the period. Increases during the four weeks in
"Inolude.. all demand deposits other thnn interbank and Gnited States Government, les.
idJusted demand and interbank deposits were responsible cllsh itoms reported as 011 ha.nd or in prooess of colleotion .
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
or a net expansion of $4,885,000 over the previous high
(Average nf doily figures- in thousands of dollnrs)
Combined totnl
Reserve city banles
Country banks
recorded at the middle of June. On July 12 total deposits
v
exceeded those of a year ago by $86,862,000. Reserves of
Gross
Gross
Gross
demand
Time
demnnd
Time
demand
Timo
these banks at the Federal Reserve Bank and their balances June,
1037 ...... . ... $1,037,335 $201,800 $573,110 $110,625 $464,225 $ 91,175
With other domestic commercial banks also rose during the Juno,
472,263
00,046
1038 .... . .. . ... 1,077,586
220,001
605,323
121,045
518, 183
. . . .. .. . ...
674,077
beriod, reaching all-time high levels. Balances of reporting Fcbruary, 1930 ........... 1,193,160 225,328 072.005 124,075 508,919 100,353
Maroil, l OBO
1,18 1,014
228,585
128,122
100,4 63
605,750
... ..
anks with other domestic commercial banks, which amount- April, ·1030 ..... .. ...... 1,178,066 220,607 672,310 127,813 502,356 101,884
102,581
May,
1030
.. .. 1,182,097
23 1,079
680,641
128,498
~d to approximately $252,000,000 011 July 12, constituted June, 1030 ... .... . ... 1,193,874 232,582 600,578 129,282 503,206 103,300
DEBITS TO INDIVIDUAL ACCOUNTS
o per cent of total deposits.
(In thousands oC dollnrs)
May
June
June
Potg. chango
Debits to individual accounts at banks in eighteen cities
~~~~. ~~:t"e
1039
1938
over year
1939
of the Eleventh District have shown counter-to-seasonal in- Abilene ................ . $ 8,158 $ 7.934
+ 2 .8
5 8,350
- 2.4
34.070
31,872
+ 7 .6
- 2.0
creases during the past two months, and in each of the Austin ....... . ....... . . . 34.205
28,343
- 2.7
22,713
22.456
+ 1.1
Beaumont ... . . . .. ...... .
~onths of May and June debits exceeded those in the respec- Corsioann. . .... . ....... . .
2,826
2,772
+ I. 0
2,770
+ 2.0
230,726
227,403
+ 8.0
245,560
Dollns ................. .
+ 6.1
hve months of 1938 by about 6 per cent. These increases EI PIISO ..... .... . ...... . 25,521
27,767
24,324
+ 4.0
- 8.1
77,523
84.088
87,157
- 3.5
Fort Worth .... : . ..... ..
+ 8.5
~ere the largest recorded for a year-to-year comparison since Galveston .............. ..
22.541
25,794
- 12.6
21.720
+ 3.7
4~ovember, 1937.
.
208,470
220,186
198,222
+11.1
HOllston .. . . .......... ..
+ 5 .6
8.810
0,567
8,960
+ 6.3
Port Arthur .... . . ...... .
+ 8.5
4,215
INDUSTRY
4,409
3,088
+ 12.8
+ 6.7
!toswell ............... ..
74,140
75,392
60,817
+ 8.0
+ 1.7
San Antonio ............ .
h BUilding activity in the Eleventh District, as measured by Shreveport ... . ......... . 41,868
41,076
41,470
+.0
.3
6,481
6,340
7,023
- 9.7
- 2.2
1'exnrknnn" . ... .. ..... .. .
:h e value of construction contracts awarded, declined fur- 1'ucsoo ..... ...... ...... . 11,546
-11.2
11,810'
- 2 .3
12,006
11,296
12,221
11,418
+ 7 .0
+ 8.2
. er by 15 per cent in June to the lowest level for any month
11,043
+12.8
12,530
~~~~::: :::: :: :::: :::::: 13,474
+ 7.5
~lnce last September. Nevertheless, the value of awards was Wichita Fulls .......... . . 15,065
14,478
16,680
- 0 .7
+ 4.1
--- --- + 5.5 $822,597 + 4.0
per cent greater than in the corresponding month last year.
Total........... S855,860
$811,100
"Inoludes the figures oC two banks in Texarknna, Arkansns, locnted in tbe Eighlh District.
~On-residential building, which had declined considerably
SAVINGS DEPOSITS
1n the preceding two months, registered a substantial increase
June 30, 1030
Per~entnge obango in
oVer both comparative months, and although residential con~--~
aavlngs depOSits from
Numbcr oC Number of Amount of ,-------~
strUction showed a further decrease of 26 per cent from the
reporting
savings
sovings
June 30,
May 31,
banks
dopositors
deposits
1938
1039
~eceding month, the June volume was 8 per cent higher
3
10.046 $ 3,024,002 + 3.4
+.7
Bcnumoot . ............. .
an that a, year ago.
8
80,521
27,616,488 + 5.3
+ 1.0
Dnllns ....... .... ...... .
2
17,049
8,351,010 + 2.2
+ 1.7
.... ......
During the first half of 1939, the value of construction gl Pnao ................ ..
3
36,066
14,316,277 + 5 .5
+ 2.2
Fort Worth
..
4
18,002
12,106,066 + 4.7
+.5
.
C?ntracts awarded in this district was larger than in any Gnlveston ..... . . ... .... ...
10
74,731
30,414,029 + 4.6
+ 1.2
Houston ..............
2
5,884
2,923,282 +11.4
+ 1.7
SllDilar period since 1931, and exceeded that in the cor- Port Arthur ............ .
5
24,350
19,124,471
+ 6 .2
+.6
Snn Antonio .......... . . .
responding six months of 1938 by 20 per cent. The latter Shreveport ............ ..
3
25,375
11,586,628 + I. 7
+ 1.3
3
8,356
4,630,246 - 4.8
+.3
....... ........
~a1n Was due chiefly to a sharp increase in residential build- Waco .. .Falls .......... ...
3
7,570
3,078,888 + 8.6
+ 1.6
Wiohitn
g, Which was stimulated by reduced financing costs, small All otber ............... .
tiO
00,408
30,848,427 + 2.8
+.8
115
378,057 $169,321,623
+ 4.2
+ 1.1
OWn payments, and low monthly instalments made availTotal. ......... .

f

MONTHLY BUSINESS REVIEW
4
two and one-half times that in the first half of 1938, and responding date in 1938 for the first time this year. Invenrepresented chiefly awards for electric light and power proj- tories of crude oil on July 1 were about 3 per cent below
ects. Privately-financed construction in Texas during the the 1939 peak, reached on May 6, and were 7 per cent
first half of 1939 was 13 per cent greater than in that period smaller than a year ago.
Activity at cotton textile mills in the United States delast year and publicly-financed work increased 22 per cent.
The valuation of building permits issued at fifteen princi- clined by a smaller amount than is usual at this season, and
pal cities in this district declined in June and was smaller than on a seasonally adjusted basis, was at the highest level since
in any other month of the current year. Although the total December, 1938. There were 578,000 bales of cotton procwas 14 per cent smaller than in June, 1938, two-thirds of essed at domestic mills during June as against 605,000 bales
the reporting cities showed substantial increases over a year in May, and 44.3,000 bales in June, 1938. During the first
ago. The decrease from June last year was due chiefly to a eleven months of the current season cotton consumption
sharp decline in the value of permits issued at Houston, exceeded that in the corresponding period last season by 20
Texas. During the first six months of 1939 the value of per cent. Mill sales of cotton goods, which had increased
permits issued was 13 per cent greater than in that period of sharply in the latter part of May, were apparently well sustained during June and the first half of July. According to
1938.
Crude oil production in both the Eleventh District and trade reports, mill sales of cotton goods during June were
the United States declined moderately during June, reflect- greatly in excess of production and the ratio of unfilled
ina chiefly a decrease in output at Texas fields resulting orders to production at the end of the month was the highest
fr~m a reduction in production allowables. Notwithstanding in several months. Mill stocks of raw cotton were reduced
the decline from May to June, production continued at a by considerably more than the average amount in June, and
substantially higher level than in June last year when a at the close of the month were 28 per cent less than a year
drastic curtailment program was in effect. Under the terms earlier. At the end of June, stocks of cotton held by mills
of the 90-day proration order issued by the Texas Railroad totaled 1,021,000 bales and there were 11,944.,000 bales in
Commission late in June, the basic production allowable for public storage and compresses. The volume of "free cotton"
the State during July was increased 54,,000 barrels over that is small, however, as the amount of cotton in Government
for June and further adjustments in some fields have been loan stocks exceeds 11,000,000 bales.
Exports of cotton fromi the United States declined further
made since that time. In consequence, daily average production during the first half of July was 2 per cent higher than in June to the exceptionally low level of 113,600 bales
the June average, but was 6 per cent less than the demand which compares with 142,600 bales in May, and 175,900
as estimated by the United States Bureau of Mines. The bales in June last year. Shipments of cotton to foreign counrate of drilling activity in the Eleventh District showed little tries during the first eleven months of the current season
change from May to June, and continued about one-fourth aggregated 0111y 3,220,000 bales, which is 40 per cent smaller
than in the corresponding period of the preceding season
smaller than a year ago.
and less than one-half of average exports for that period
Crude oil runs ,to refinery stills in the United States, which
have shown a sharp upward trend since February this year, during the past ten seasons.
Following the increase in April and May, raw cotton
reached an all-time high level in June and exceeded the
average in that month last year by about 12 per cent. Al- prices fluctuated within narrow limits during June and the
though estimated consumption of gasoline during June was first half of July. Withdrawals of cotton from Government
also at an all-time high level and somewhat in excess of loan stocks continued in substantial volume.
CRUDE OIL PRODUOTION
production, withdrawals of gasoline from storage continued
(Barrels)
much smaller than at this season a yem: ago. During the
June, 1039
lucrenso or decrense in doily
------,_ average production rrom
second quarter of 1939, gasoline inventories were reduced
r-Daily avg. , - - - - - - - - - Total
at an average rate of about 4,75,000 barrels weekly, which
production
June, 1938
May, 1930
production
153,880
+ 20,630
- 2, J14
was only about one-half the rate in that period last year. North ToxllS .. . .. . .......... . 4,616,400
248,640
+ 40,106
+
046
7,450,200
West Texas .. . ........... . . . .
472,185
+ 17,410
-37,035
On July 1 stocks of gasoline exceeded those on the cor- East Texas ................. . 14,165,550
VALUE OF OONSTRUOTION OONTRAOTS AWARDED
(In tbousands of dollars)
Jnnullry 1 to June 30
.June
Juno
May
1939
1938
1939
1038
1939
97.128
80,961
Eleventb District-total.. .
13.596
12,826
16,977
40,64 1
27,754
R.esidcntial. . . . . . . . . . . .
6,946
6,607
8,002
56,487
53,207
All otber..... .. . ......
7,661
7,319
7,975
1,699,364
1,294,272
United States·-total. . .. .
288,316
261,006
308,487
644,527
399,038
ll.esidential. .. .. .. .. .. .
111,896
85,682
133,818
1,054,837
895,234
All other. . . . . .. . . ... . .
176,420
166,324
174,669
.37 states east of tbe Hooky Mountains.
sounOE: F. W. Dodge Oorporntion.
DUILDING PERMITS
Percentage
Percentage chango
Jan. 1 to Juno30, 1939 oban~o
valuation from
,June, 1939
valuation
yo
v
r
from 1938
Vnluation
No. Valuation June,1938 May,1939 No.
-35.9
154 $ 336,440
-20. 0
24 $ 39,014 +37.1
Abilene ........
+40.5
-47.2
394 1,657,786
222,360 +46 .3
56
Amarillo ........
+50.0
1,462 4,608,787
- 1.0
631,657 +61.8
Austin ........ . 248
724,461
+ 6.6
800
+ 4.3
128,627 +18. 1
155
Deaumont ......
+67.3
911 2,859,248
+70.7
581,065 +70.2
0';.l£us Ohristi .. 150
+20.9
3,814 7,315,670
+20.4
620 1,193,581 +24.6
D tIS· . .. .....
1,020,210
+ 40 .0
607
+ la.5
166,755 - 9.6
EI PtlSo .. ...... 136
+ 3.6
1,490 3,297,952
- 12 .0
468,359 - 24.5
Fort Wortb ..... 259
-39.6
800,778
852
+13.6
151,742 +76.3
132
Galveston ......
+ 5 .5
3,040 14,548,295
- 13 .8
2,034,800 -42.6
520
Houston ...... ..
530,159
-38.1
741
+55.8
116,722 +44.8
132
Port Arthur ....
- 7.1
1,552 2,516,801
+ 9.5
421,198 -57.4
Son Antonio .... 336
- 2.5
048 3,071,142
-60 .6
387,396 +07.7
Shreveport ..... 145
953,591
+86.4
392
-26.6
127,517 +81.9
66
Waco ..........
473,597
+21.7
249
-40 .2
69,214 -33.3
49
Wichita Falls ...

------

Total .. .. 3,037 $6,740,806 - 14 .0
• Inoludes Highland Park and University Park.

9.7

17,505 $44,514,916

+12 .5

South Tcxas ....... . .... . ... .
Toxas Ooastal. ......... . . . .. .

Total Toxas .... ...... .
New Mexico ............. . . . .
North Louisiana .. .. . ........ .

6,768,900
6,461,550

--39,471,600
3,234,150
2,195,850

225,630
215,385

+ 20,202
+ 27,307

--1,315,720

--+ 125,835

107,805
73,105

+ 17,087
5,780

--- --+137,142

Total District......... . 44,901,600
1,496,720
BOunOE: The Oil Weekly, Houston, Texas.

-

- 17,420
- 8,802

-64,785
+ 1,005
- 1,16 1
- 64,041

OONSUMPTION, STOOI{S AND EXPOHTS OF OOTTON
(Dales)
August 1 to Junc 30
May
June
Juno
This setlSon Last SOtlSOD
1039
1939
1038
Oonsumption at:
107,582
113,278
11,182
Texas mills. . . . . . . . . . . .
10,355
10,248
5,299,526
6,333,841
605,353
578,448
443,043
United States mills. . . . .
U.S. stocks-cnd of month:
....... '
In cQllsuming estab'mts . 1,021,236
1,175,290
1,411,988
Publio stg. &< compresses. 11,943,683
9,725,704 12,369,578
Ex~orts from U. S. to:
393,555
1,621,1~~
9,853
12,822
nitod Kingdom .. ... . .
21,041
335,131
711,4 6
3,234
5,453
7,873
261,030
9,253
9,222
483,1~2
19,448
044,0 5
306,636
Gcrmany ... . ... . ..... .
14,575
20,822
16,921
697,146
Otber Europo ... . ..... .
17,816
805,0~8
20,330
57,879
620,0
845,523
40,500
30,286
525,7 61
i~r~~hcr :co;;rit~i';'·.·. '. : :: 28,000
30,903
381,288
21,830
33,338
Total exports......
113,634
175,878
142,577
3,220,309
5,402,700

r{~~~~: :::::::: :::::: :

---

RECEIPTS, EXPORTS, AND STOOKS OF OOTTON AT THE POR'rS OF
HOUS'roN AND GALVESTON-(Bales)
JUll'e
Juno
May
August 1 to Juno 30
1939
1038
1939
This senson Last sensoD
Receillts ....... . . . .. .
66,500
52,335
35,967
2,045,971
3,729,444
Exports........ ........ .
81,558
144,410
110,oJ5
2212,902
2,871,54 8
Btocks, end of month..... 1,023,783
1,338,944
1,041,111'
..... " .

MONTHLY BUSINESS REVIEW

August 1, 1939

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
INDUSTRIAL PRODUCTION
'til"."

,,",",,'

14()

140
I 30

120

eo
'0

I 20

/VV\

110

f

\
\

~

I

lL'\
V

I 10

'y./

/
-v

100

/ V

90

so
'0
60

19:.\4

19)5

19315

1937

193t

t9Mt

~ndex of physicnl volume of production, adjusted
or seasonal variation, 1923-1925 average
100,
By months, January, 1984, to June, 1939.

=

FACTORY EMPLOYMENT
120
"""''''
110

00

I~

/"

V

110

JV'\

100

90

IV

so

Output of factories and mines increased in June, reflecting chiefly sharp expansion at
steel mills and bituminous coal mines. In the first half of July, industrial activity was gen·
erally maintained.
PRODUCTION
The Board's seasonally adjusted index of industrial production advanced to 97 in June
as compared with 92 in April and May.
At steel mills output increased from a rate of 45 per cent of capacity in the third week
of May to 54 at the end of June and to 56 in the third week of July.
Automobile production, which had declined in May, showed some increase in June when
a decline is customary. In the first three weeks of July automobile output was at a lower
rate, reflecting in part ewtailment preparatory to the change·over to new models. Plate glass
production rose considerably in June. Output of lumber, which usually shows some increase
over May, was unchanged. Among non·durable goods industries woolen mills showed in·
creased activity in June, and activity at cotton and silk mills was maintained though deelines
are usual at this season. Meat-packing was lower than in May.
Mineral production increased considerably in June reflecting a sharp rise in output at
bituminous coal mines which had been closed during April and the first half of May. Produc·
tion of anthracite declined from May to June and there was some reduction in output of
petroleum.
Value of consu'uction contracts aW81'ded declined in June, according to F. W. Dodge
Corporation figw'es, reflecting chiefly a greater than seasonal decrease in private residential
building. Contracts awarded for publie residential construction, principally for United States
Housing Authority projects, were maintained at the advanced level reached in May, while
public construction other than residential showed a small decline.
EMPLOYMENT

'"

60

19.s~

't!4

19315

'937

1938

1939

~n<l~x of number employed, adjusted for seasonal

=

U"ntion, 1928-1925 uverage
100. By months,
January, 1984, to June, 1989.

DISTRIBUTION

FREIGHT-CAR LOADINGS
10
"""'"
I

100

00

'-

90

00

~

rv,.;-

.r

lA

so

"\

V

/' 'v

TO

<0

40
t935

1936

1931

1938

1G39

}~~ex

"f total 10lldlngs of revenue freight, Ild_ ~odo for sellsonlll variation, 1928-1926 average
. By months, January, 1984, to June, 1939.
MEMBER BANKS IN 101 LEADING CITIES

!>Cu.",
'0

....."lOI'tt O#OOI.\.

~........
,
h..~ us••,- '"j ........"
,

OOVT O84...IO-'TIONS

~

.o,
12

'-

Freight-c81' loadings increased more than seasonally in June reflecting a sharp rise in
sltipments of coal and smaller increases in shipments of grain and miscellaneous freight.

10

Prices of hides, silk, steel scrap, copper, and some other industrial materials advanced
from the middle of June to the third week of July, while some farm products, particularly
grain, declined . Prices of most other commodities showed little change.
AGRICULTURE
A total wheat erop· of 716,655,000 bushels was indicated on the basis of July 1 conditions.
According to the Department of Agriculture, this would be much smaller than last year's
large crop and somewhat below the 1928-1937 average. Cotton acreage in cultivation was
estimated to be about the same as last year but one·third less than the 10·year average. A
record tobacco crop is indicated. Most other major crops are expected to approximate last
year's harvests and are generally larger than average.

V

BANK CREDIT
Total loans and investments of member banks in ]01 leading cities continued to increase
during the four weeks ending July 12, reflectin g largely purchases of United States Govern·
ment seeurities. Commereialloans, which had shown liltle change in recent months, increased
sligh.tly. Deposits and reserves at th ese banks rose to new high levels in July, refleeting
continued gold imports and Treasury disbursements from its balances at the Reserve banks.

l~~s~

.,..

Department store sales showed a less than seasonal decline from May to June and the
Board's adjusted index advanced from 85 to 86, which compares with. a level of 88 during
the first four months of the year. Sales at variety stores and by mail-order houses showed
Ii ttle change.

COMMODITY PRICES

'"
'9)4

Factory employment and payrolls increased somewhat from the middle of May to the
middle of June according to reports from a number of important industrial states. There was
a sharp expansion in employment at bituminous coal mines following the reopening of the
mines in the middle of May, and the number employed on the railroads increased more than
seasonally from May to June.

OfHr:II $tCUftITlts

L04NS TO UAC)(LA$'

AHO DelLER'

.~

1935

Wed

1936

1
937

1938

1939

o

lOl re!\()d IlY fil{Ures for reporting member banks in
19U9 ea ing cities, September 6, 1934, to July 12,
I\nd' COmmercinl 10ILns, which include industrinl
19:.rgrlcultural lonns, represent, prior to May 19,
, so-called "other loans" as then reported.

MONEY RATES
Priees of United States Government secw'ities, which had deolined somewhat during
June, reeovered part. of the loss in July. The 10ngesH erm Treasury bllllcl olli sianding showecl
a yield of 2.31 per cent on July 20, as compared with a record low of 2.26 on June 5. Openmarket money rates showed little change.