Full text of Review (Federal Reserve Bank of Dallas) : December 1, 1923

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MONTHLY REVIEW OF BUSINESS AND
INDUSTRIAL CONDITIONS

I;
§~

IN THE

LYNN P. TALLEY. Chairman and Federal Reserv. A.ent

CHAS. C. HALL. A..istentFederal

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FEDERAL RESERVE BANK OF DALLAS

ELEVENTH FEDERAL RESERVE DISTRICf

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§

a-rv. A.en

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(Compiled No\)ember IS. Iqll,)

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Volume 8,

No.

Dallas. Texas, December I. Iq2,

THIS COPY RELEASBD POIt PUBLJ"
CATION IN AFTBRNOON PAPERS

IIIIItUlUlIJtWllIIltHlmJi

NOV. ,oth.

DISTRICf SUMMARY
:fIIllltU.IIUUt

I
I

----:;;;-~;;--'-"-"-"---·I=~

I
i

October

Bank debits to individual accounts (at 13 cities) ......................
Department store rmle8_...._._~_.. ___ ._..__ . __._ ..... _._ ... .
R~lIerve Bank 10an8 to member banks at end of month_. ___ ._
Reserve Bank ratio at end of month. ....... _._____ . _____ _
Building permit valuations at larger centeIa. ... ___ ......._. __ .
Commerc181 failures (number) ____ ._ .... _._ .... _... ____._._._.
Commercial failures (liabilities) ...... __ ...... ___ . __ .. ___ . _•.....
Oil production (barrels) ...._____ _.............. _._..... _.. _..._. ___ ._
Lumber orders at pine mills (per cent of normal production)

lUUIOUIDDI"" """'' 1II1JI1I11I0I1111I11101IIIII'' ' ' ' ' '111'' ' 1II'' ,m""""'."""lfH"""""'Ii"",,,uU"'''''""I1'''"U''"'WJJU'

$813,238,000

$ 21,306,361
63.6 %
5,058,798
111
$ 2,417,470
16.784,220
91 %

UIlUlillUIJIUlllll.IU

,.u'J1Ut~rwilllMIlU

September

Inc. or Dec.

Inc.
Inc.
$ 29,879,178
Dec.
54% Dec.
$ 6,615,395
Dec.
79
Inc.
Inc.
$ 1,757,766
Inc.
16,048,115
103 % Dec.
$700,272,000

16.1%
24.6 %
28.7 %
.4 point
22.4%
40.6 %
37.0%
4.6 %
12 points

I
E

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Record-breaking debits to individual accounts re- and the rise in deposits has been even more marked.
sulting from the active distribution of goods at both During the first two weeks of September payments
wholesale and retail, the heavy liquidation of old at the Federal Reserve Bank of Dallas averaged only
and current indebtedness, and the movement of cot- slightly less than a million dollars per day, and durton to the concentration points formed the outstand- ing the ten weeks' period since liquidation set in
ing development in the Eleventh District during the loans have been retired at a rate of more than
past month. Retail trade was exceptionally active, $450,000 per day. The rise of approximately $150,showing substantially larger volume of sales than 000,000 in the demand deposits of member banks of
in either September this year or October last year. this district since the low point of last summer, comWholesale distribution was even larger than the ing at the same time as the reduction in loans, has
previous month, and continued to show a widening left the bankers with the problem of obtaining a
margin over a year ago. Although October is the profitable outlet for these surplus funds. Consemonth in which retail merchants in this section cus- quently, there has been a strong demand for shorttomarily make heavy payments on their accounts, time investments for the employment of idle funds
the liquidation of these accounts last month was until they are needed to finance the next crop. Many
exceptionally gratifying, especially because of large banks have invested heavily in commercial paper, as
well as the Government short term certificates.
payments made on accounts of long standing.
Commensurate with the liquidation of book credit Nevertheless, banks as a rule are carrying large cash
has been the lifting of individual indebtedness at reserves partly on account of the insufficient supply
banks. Loans have been receding at a rapid rate of desirable investments.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

The district's stockmen have received encouragement from the continued improvement of the
ranges and livestock following the abundant rains
during the past three months. Indications are that
livestock will go into the winter in better condition
than for the past several years, and that but little
feeding will be necessary. However, the heavy receipts at market centers has caused a downward revision in prices which has greatly reduced the stockmen's profits.
Co:ncident with favorable developments has been
the heavy casualty rate in the mercantile field as
reflected in the month's failure statistics, which
shows the checkered situation that still exists in

this district. From the chart (elsewhere in the
REVIEW) it will be noted that both the number of
failures and the indebtedness involved have increased sharply during the past two months, despite
the strong tide of business activity that has prevailed.
The October oil production, which exceeded the
previous high record, has added to the amount of
surplus stocks, causing a further weakness in the
crude oil market.
Building permIt valuations at larger centers evidenced a seasonal decline of 22.4 per cent and lumber
orders at pine mills receded 12 points.

CROP CONDITIONS

Weather conditions generally have been unfavorable to the harvestinK of crops and farm operations during the past month. The excessive and
continued rains have not only retarded operations
but have been responsible for considerable losses.
Cotton picking has been greatly delayed, the grade
of the lint has been further reduced and considerable
wastage has resulted, particularly in the northwestern section of Texas. While only a small portion of the small grains have been sown (on account
of the wet condition of the fields), the grain seeded
early in the fall is growing well and there is sufficient moisture in the ground to carry it through
the winter.
The corn crop now being harvested is not only
of a very poor quality, but the average yield is
very unsatisfactory. It is estimated that this year's
crop in Texas will not average more than 18.5
bushels per acre, which is the lowest yield since the
poor crops of 1917 and 1918. The total production
for Texas this year is estimated at 97,429,000
bushels.
Although grain sorghums have made good growth
since the rains began late in August, there has not
been sufficient time for the crop to mature properly
in many localities. The excessive rains during the
past month have greatly interfered with harvesting
operations and much of the crop was lost in the
field. The November 1st estimate of this year's
production was placed at 45,496,000 bushels.
In North and East Texas it will be necessary for
the farmers to purchase a considerable amount of
feed before the 1924 crop is made, due partly to the
reduction of the acreage planted to these crops, and
partly to the low yields of this year's feed crops.
Earlier in the season it appeared that West Texas
would have a sufficient feed supply with which to

make another crop, but the recent losses and the
lighter yield than was expected, due to the excessive
rains, seems to indicate that additional feed will be
needed.
" ' ,i '.,~) .:~
The yield of the Texas sweet potato crop ' wa~
forecasted at 6,880,000 bushels, as compared to
8,715,000 bushels in 1922. The average yield per
acre this year was placed at 80 bushels, which is
eight bushels below the ten-year average. The wet
weather has delayed harvesting, and shipments prior
to November 1st totaled only 115 cars, as against
389 cars to that date last year.
While the production of New Mexico crops was
curtailed by the dry spring and summer, this year's
yields of most crops will greatly exceed those of
last year.
According to the report of the Bureau of the
Census, Texas ginnings from the 1923 cotton crop
prior to November 1st amounted to 3,496,479 bales,
as compared to 2,847,427 bales last year. ,Despite
the unfavorable weather conditions, 1,311,260 bales
were ginned between September 25th and November
1st. On the basis of the Department of Agriculture's forecasted yield for the Texas cotton crop this
year-4,300,000 bales-more than 80 per cent of the
crop was ginned prior to November 1st. In the
northwest section of the state the rain and frost
damage has been considerable. The opening of the
bolls has been retarded, the cotton on the ground is
sprouting, and the grade of the lint has been considerably lowered. Only about 45 per cent of the
crop had been gathered up to October 25th. In
the west the crop was approximately two-thirds
picked. A considerable amount of cotton remains in
the fields of the bottom land of the north and east
sections, but the cotton on the hill land is practically
all gathered. In other sections of the state only a

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
small amount of cotton remains in the field. Whilp
this year's production will be substantially above the
1922 yield, much of the cotton this year is of a low
grade. Last year the grade was exceptionally good,
due to the fact that ideal weather conditions prevailed during most of the fall.

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COTTON MOVEMENTS THROUGH THE PORT OF -

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~lIlnIUIIIIJ1l1nllllillll1 l[(lIl1ll1l1lll1JlIIllliUlUIUllllIJllIllllllillIlIlJJUllllllllllllllltltUIi I IIIUUllnUlllIl1nllUUIl I IllIlIlIlIIllIfIlIIllIlt':

Cottoq
Movements

The October receipts of cotton at
the port of Galveston amounted to
647,262 bales, as compared to 532,248 bales for September, and 654,422 bales for
October, 1922. While the receipts for October this
year show a slight decline from that month a year
ago, receipts since August 1st this season have outstripped those of the corresponding period of 1922
by 15.4 per cent. Stocks at this port on October
31st were 369,832 bales as compared to 472,234 on
that date a year ago, reflecting the heavy export
movement this season. Exports from Galveston
amounted to 561,233 bales for October, and 1,033,796
bales for this season. The increase in this season's
exports over last season was 30.5 per cent.
The gross receipts at Houston for the season
passed the two million mark during October, and
net receipts passed the million mark. The net re~
ceipts for October amounted to 504,557 bales as
compared to 487,380 bales during September and
443,648 bales during October, 1922. Exports for
October amounted to 202,318 bales as against 171,619 bales during the corresponding month of 1922.
This season's exports were 65.3 per cent greater
than for the corresponding period of last season.
The total foreign exports from all United States
ports since August 1st thi, season were 12.5 per
s
cent larger than the corresponding period of 1922.

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GALVESTON STOCK STATEMENT

Oct, 31.
1923

:; For Great Britain................................

Oct. 31.
1922

25,136

15,984:;

I J:; !~,J~f~~f~~
~

n compresses......................................

2:!:~H

,:H!i!

Total............................................

369,832

472,234 ~
=

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ll

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~

HOUSTON COTTON MOVEMENTS
Aug. lst. to Oct. Slst

October

1923

O"wbtor
1922

This
Season

La.at
&aaOD

~
~

~ Receipts-GIoss .. _ 901,816 818,913 2,005,969 1,655,126 ~
§ Receipts-Net __ .. 504,557 443,64811,144,. 37 881,322 ~
3
§ Exports ____ ._....._ 202,318 171,619 463,284 280,287 §
§ Stocks, Oct. 31st..__ ._. __.___ .......... __. 483,817 432,768 §
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~ SEASON'S RECEIPTS, EXPORTS, AND STOCKS ~
~
AT ALL UNITED STATES PORTS
j

§
=;
__

I
.

Recelpts SInce ug. L ............
§ Exports: Great Britain ..... --.
=
France --..................
§
Continent .......... __ ____

IS~~~. }~il~¥~~~#f

This Season

2,614,134
514,'700
237,7 6
649,675

,.::::!!!

Last Season

=:_~

2,067,828_
460,371 ~
225,665 =
569,597 ~

:~:!::!!

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LIVESTOCK
An abundance of grass and weed growth following the good rains throughout the district during the
past two months has put livestock in better condition than usual to go into the winter. The average
condition of cattle on Texas ranges on November 1st
was 3 points higher than on October 1st, and 17
points higher than on November I, 1922. Range
conditions in Texas gained one point in October and
were 17 points above that of November 1st last year.
In other sections of the district ranges have shown
a constant improvement, and are considerably better
than a year ago. Low temperatures over the major
grazing areas have aided in curing the grass and
there are good prospects for adequate winter grazing. In only a few sections of New Mexico did

frost come before the grass was matured. In Texas
there appears to be an unusual amount of volunteer
wheat and the recently sown fields of wheat, oats,
and rye are making good progress, which will add
to the supply of winter feed.
The October receipts of cattle on the
Fort Worth market, with the exception of August, were the largest of
the current year, and it was the first time since
1919 that the October supply passed the 100,000
mark. While the calf receipts were the most liberal
offered for any month this year, they were considerably below those offered during October of the
Movements
and Prices

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

two previous years. Hog receipts reflected good lambs, and they usually brought around $12.00, but
gains over the past few months, and were substan- feeder lambs suffered a substantial decline.
tially larger than in October last year. The supply
of sheep, however, was less than in September, and
FORT WORTH LIVESTOCK RECEIPTS
was about equal to that of last October.
October
September
Loss or
October
Los. or
Although market conditions were considered moderately satisfactory during the past month, there
Cattle ....
GG 99
was a downward revision on practically all classes
_ Calves .... 54,005
of livestock. Cattle prices were fairly well maintained, the losses on most classes being very slight.
A good demand for stockers and feeder steers was
in evidence throughout the month. Steer yearlings
usually cleared around $6.00, and good feeders
ranged up to $7.10. The hog market performed well
COMPARATIVE TOP LIVESTOCK PRICES
during the first three weeks and reached a top price E
October ;&Pkmbel"
October
ii
1923
1923
1922
=
of $8.30, due to the strong competition among buy- "
; Beef steers ..............................
$ 8.00
$ 7.75
$ 7.35
ers caused by the lack of a sufficient supply to meet § Stocker steers ........................
7.10
6.50
6.00 §
6.60
4.75
5.00 l!
trade requirements, but during the last ten days § Butcher cows..........................
S Stocker cows ..........................
=
§
3.25
3.50
4.00 g
there was a very discouraging drop, and the top s Calves ....................................
7.50
7.50
6.75 i
8.30
9.65
9.95 ~
price broke to as low as $7.35. The sheep market ~ Hogs ........................................
§ Sheep ......................................
7.25
8.50
7.25 s
was very irregular, good wethers selling at a range ;; Lambs ......................................
12.00
13.00
12.50 ;;
~
§
of $5.25 to $7.25. There was a scarcity of fat F.III1JlIIIIIllUIIIIIUIIIIUUllllUlJIlIIIIIUIIIUIIIIIUtlUlUUlllnnUilluuwUUIIIIIIIUIIIUUUllllluulnuuIIUluIIUIIIUUDlllb1lllDIDJIII~
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TEXTILE MILLING
Reports from thirteen textile mills in this district
showed that 4,213 bales of cotton were consumed in
October, as compared to 3,900 bales in September,
and 3,818 bales in October last year. There were
120,520 spindles active as compared to 111,488
spindles in October, 1922. The production at these
mills was practically the same as last month, but
was approximately 10 per cent greater than in the

corresponding month of the previous year. The orders on hand at the close of the month were substantially greater than those at the close of the
previous month, but were considerably less than a
year ago. Stocks showed but little change from the
previous month, but were well above those at the
close of October a year ago.

WHOLESALE TRADE
Increased activity in wholesale distribution and
good collections, stimulated by the large returns
from the cotton crop, were conspicuous features of
trade developments during October. Every reporting line of trade reflected a larger vo~ume of sales
than in October a year ago, and groceries was the
only line to show smaller sales than in September.
There are evidences of a rapid turnover of stocks,
and the potential demand is still large, but the purchasing in anticipation of forward needs has been
on a very moderate scale. Despite the heavy consumer demand retailers generally are buying largely
as the actual need for goods develop, and are showing a disposition to hold their stocks to a minimum.
This situation contrasts to a degree with the situation that obtained a year ago. At that time, aI-

though they were operating conservatively, retailers
were exercising a greater latitude in forward buying
and were contracting for such goods as they were
reasonably certain could be disposed of. This year
the price factor is a disturbing element in trade. In
some lines price recessions are expected and retailers are holding off to await further developments,
while in other lines prices have risen to the point
where retailers believe any further increases will
restrict consumer buying, and are therefore making
some resistance to further advances.
Collections of both wholesalers and retailers have
been good this fall in all lines of trade. Not only
have payments been prompt on current purchases,
but many accounts of long standing have been wiped
out.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
Dry
Goods

After a slight decline in September
the sales of reporting dry goods
firms reflected a gain of 4.8 per cent
as compared to the previous month, and 26.3 per
cent as compared to the corresponding month a year
ago. The buying demand is good, but purchases are
being made for nearby needs, and to a large extent
represent replacement orders to supply the heavy
consumption demand. Present prospects point
toward active business during the remainder of the
year, but the lack of forward buying is not altogether encouraging. The further sharp rise in the
price of raw cotton, with the increasing evidence. of
a short crop, has caused a firmness, with a tendency
toward higher prices, in primary textile markets.
Although prices on the finished products have not
moved upward to the same extent as the raw material, wholesalers and retailers are resisting the
higher prices, and the mills are showing a reluctance
in making any material markup.
Hardware

While the sales of hardware firms
reflected a substantial reduction in
September as compared to August, the October sales
of these firms exceeded the September sales by 17.3
per cent, and October, 1922, sales by lOA per cent.
Sales for the four months' period (July 1st to October 31st) were 19 per cent in excess of those during
the corresponding period last year. Reports indicate that seasonable goods have been moving in
large volume and the demand for builders' hardware
has been well sustained. Both wholesalers and retailers have bought conservatively during the several months past, and the heavier consumer demand
has been reflected in the increased sales of the
wholesalers.
Furniture

Reports from wholesale furniture
firms indicate a further increase in
retail buying during the past month. Sales were
not only 21.4 per cent greater than during September, but were 19.7 per cent greater than during
October, 1922. The distribution during the past
four months was 7.3 per cent above the corresponding period of last year. It will be remembered that
a revival occurred in the furniture trade in 1921,
following the increased activity in building, which
manifested itself early in that year. The large volume of building since that time has consequently
created a heavy demand for furniture. The demand
for furniture has gradually changed from the
medium and lower priced goods to the more expensive furniture, due to the increasing number of

the better class of residences and apartments which
have been built.
The reports from farm implement
firms reflected an increase of 16.9
per cent as compared to September,
and 24.1 per cent as compared to October, 1922.
The increase over October last year is more striking
when it is recalled that the first heavy movement
of last fall occurred in that month. With the bulk
of this year's cotton crop picked and marketed at a
good price, the new demand is beginning to manifest itself. It is undoubtedly true that the farmers
close the present year with more actual cash than
they have had since 1919, yet there is considerable
uncertainty as to what proportion they are going to
turn back into farm equipment. There is a tendency among cotton farmers in many sections of the
district to purchase automobiles and other luxuries
rather than to purchase necessities. However, an
encouraging feature is found in the demand that has
materialized thus far. Furthermore, collections
have been particularly good this fall and old accounts have to a great extent been liquidated.
Unfavorable developments have occurred in the
west and northwest, where the heavy rains have
caused heavy losses of both cotton and feedstuff.
Farm
Implements

Drugs

For the fourth consecutive month
the sales of eight drug firms have
shown a gain over the preceding month. The October sales of these firms were not only 14.7 per cent
larger than September sales, but were 16.5 per cent
greater than sales during October, 1922. The drug
trade has been fairly active throughout the year,
as is evidenced by the fact that sales for the first
ten months were 8.7 per cent greater than during
the corresponding period of 1922. Collections during the fall season have been good, many old accounts having been entirely wiped out, and others
materially reduced. While monthly sales receded
somewhat in November, late reports indicate that
the November business is comparing favorably with
October. Drug prices have shown but little change
during the past months.
Groceries

The buying demand in the wholesale grocery trade was well maintained during October, but was not so good as during the previous two months. Sales of reporting
firms were 4.7 per cent less than September sales,
but exceeded those of October, 1922, by 6.3 per cent.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

Sales for the season (July 1st to October 31st) were
11.5 per cent greater than those for the correspond-

ing period of 1922.
firm.

Prices as a rule have remained

;" tntlIlItlItlUIIIJIIIHllltllllllltitIIttIllJIIUlllltlllllltllltlIlIlIllIltIllIlIlIlIlIlIlIIllIIlIIllUlllfIIltIIUIiWllll1Il1l1lJlIlIIlIIllIlIIllIllIlIIl1Il1Illl lIi ltllllllltlllJlIUlIlIlIIlIIWlllllllllllllllllllllllNlI1IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111 1 11111111I11"11t !~

;

CONDITION OF WHOLESALE TRADE DURING OCTOBER, 1923
Percentage of Increase or Decrease in

:=_-~I g:;'~ ;d,: : : : : : : : : : : : : : : : : : : :. : : : :: : : : : : : :'~:~1'f,~ i:i!: :;:;~~;:;:: ;;~~:~:~ i~:

..._... ~~_ .................
+ 15.4
+ 10';'\::
s
+ 12.2
2.6 ~
i
+ 27.8
- 2.9 i=E
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.
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Furniture ............................................................................................
Farm Implements................................................................................
Drugs ..........__ .___ ..................... __ ............... __ .__ ........... ____ .... __ .....................
Hardware ---.....-......--... --.. -.. --.--_ _ __ ......_____ .~ _ ....~ .....-... - ~ .- .. -__
....... ...
_

+19.7
+24.1
+16.5
+10.4

+21.4
+ 16.9
+14.·7
+17.3

+ 7.3
+39 .6
+ 9.4
+19.0

RETAIL TRADE
Retail distribution during October, as measured
by the sales of department stores in the larger cities
of the district, was the largest of any October since
1920, and was less than five per cent below October
of that year. The sales of twenty-four stores exceeded September sales by 24.5 per cent, and October, 1922, sales by 19.9 per cent.
Stocks on hand at the close of October were only
2.1 per cent above those carried at the close of
September, but were 6.5 per cent greater than those
on hand at the close of October, 1922. The ratio of
stocks to sales for the four months, July 1st to
October 31st, was 488.4 per cent, as compared to
545.9 per cent for the three months' period ending

September 30th. The improvement in this ratio
was accounted for by the heavy increase in sales during the past month.
The ratio of outstanding orders to last year's purchases at the close of October was 7.1 per cent, as
compared to 8.8 per cent at the close of September,
and 7.6 per cent at the close of October last year.
While collections were slow during September,
there was a substantial improvement in October.
The ratio of October collections to accounts receivable on October 1st was 39.9 per cent, as compared
to 33.7 per cent in September, and 37.7 per cent
in October, 1922.

!.'lIInUlinttrl lllltl IIIUlUJUUltlUIIIIILlllllflmUlIllHUlIlIIl11lI1l11,IIIIIIIUltltlllllUfIIlfllIJ1IIIIII IIIIIUfIl Il IlJUIIIIIIIIIIUUIiIUUUUUlUIIlIlIllIllIllIUItIllHIIIIII11UIIIIIIIIIUIIII IJII'IIIJllIlU"!lnnIUUUnfllIU!lllUnUlllllmlilUnlnH"nIflIUIUtHlnn mI1U1lmmlJ1l1~ mnmll~

1
:i_

BUSINESS OF DEPARTMENT STORES

Tou.g;~~:: :m: ::=: -:lit ~;~:~';:'2i9i3

July 1st to date compared with same period last year
Credit Sales~
October, 1923, compared with October, 1922..................
October, 1923, compared with September, 1923............
l:
July 1st to date compared with same period last year
__

Total

D·t+ ia " Wiii: HOO;~:: An °iiq "'U±1~:;
7.6
+ 4.3
+11.4
+
+ 7.1

1- ---=
-= _

5.0

-----=

~ ~~
October,

1923, compared with October, 1922..................

i ::~::}O:=:~~E~~;:~~~;t~~:~::;:h;~:
i
~

Ratio of October colIections to Accounts Receivable, due
and outstanding on Oct. I, 1923 ... _._ ....... _..._ ..............._.

+27.1
+1 ~. 7
+ .3

tg:~
+ 15.6

+20.1
+16.5
+24.6

t ~:;
+10.4

+24.1 a
+20.1 §
+12.2 !l

+10.9

+ 5.5

+ 4.4

+ 4.0

+ 6.5 ~

~7t~
37.3

~1!!
39.0

~91:~
41.6

::!

~:::

43.8

39.9

+
..

I
~
~

~lltultmulUtillliljlJlllnIUllllllnn11111l1l1llIUIlIlIlIIIlIJlI"'''''nlllllulllttlliIlUiUIIlIIlff tlllUlllllllllllll1lllllilillHllllUllUIIHIIIIIlnnllUllllllllf1llllIllllllllllllllilUllUIIIIIIII""PIIIIIIIIIIIIUnlll1l1u"tlIIIlUtIltIlIlUtiIlUIIIUltillUlIllI1ll11t11II11IUUllllllllllf,t11IWlllllllfllut",.~

FINANCIAL
The volume of checks charged to depositors' accounts at thirteen principal cities of the district
reached the highest total on record during October.
The total volume for that inonth amounted to $813,238,000, as compared to $700,272,000 for September,
$744,830,000 for October, 1922, and $786,115,000 fQr

October, 1920. This represents an increase of 16.1
per cent over September, 9.2 per cent over 1922, and
3.5 per cent over 1920. This large increase is accounted for by the active business at both wholesale and retail, the payment of accounts, and by the
beavy movement of cotton at high prices.

MONTHLY REVIEW OF BUSiNESS AND INDUSTRIAL CONDITIONS

1""'""""11"11" 111'"III1"I"II1I1"II"nlll1""IIIIII""I11II11I""""IIJ"rrllllllll~::;~;'~"I~~1II~;;~I;;I;I~I;~':"I:~~~~:~~IIJIII""II"'''III'''''"''"l1rrllllll''III'''I''1II"""""'''.....I''~IIIIIIt.n''.II'''1
5
~

O¢tooor, l02R

Albuquerque ...........................................................
Austin .....................................................................
!!
Beaumont ...............................................................
- Dallas .....................................................................
El Paso ...................................................................
i Fort Worth .............................................................
~ Galveston ...............................................................
I Houston .................... - ... _ .................... __..... _._
San Antonio ...........................................................
I
Shreveport ..............................................................
i! Texarkana ..............................................................

~:c~:;:;~~;~~;::~~i~,~.::

IUIllIJUIlIt" UlUIUl llUl limUlllrnU IIHlUl lllhnumlUu IIIlUIlIIUIIIIIIIUUIIIIInnl l llllO

September. 1923

Inc. or Dec.

$ 8,979,000

$ 8,568,000

2023D,OO{l
16,495,000
218,769,OOQ
28,604,000
83,464.,000
149585,000
164,3 3,000
35,236 000
39,079,000
11,288,000

18,291 ,000
14,564,000
184,132,000
23,556,000
67,011 ,000
128,501,000
146,281,000
32,162,000
31,896,000
9,540,000

+ 4.8
+10.7
+ 13.3
+18.8
+21A
+ 24.6
+ 16.4
+12.1'
+ 0.6
+ 22.5
+ 18.3

18:::::::::: $7:::::::

C>ctober. 19~

!:!::

Inc. or Dee.

$ 9,670,000
19,297,000
15,528,000
200,507,000
29,835,000
100,674,000
124,521,000
139,942,000
31,143,000
34,216,000
7,116,000

$7:::::::::

- 7.1 ~
+ 4.9
+ 6.2 ~
+ 9.1
- 4.1
-17.1
+20.1_
+17.5 ~
+13.1 ii
+14.2 ~
+58.6 i

i
I

:1:! I

IIIIUUlllUllllmllllnnUfllnnUtlUlUIIIIIlIlIIItII!lllrulllllllllllUmnltllmIUIrIIIJUln,UIlIIlUlllllUunnUlllmllullllllllltlllIllllIUIIIIIIIUU IIIIIUImlllllllnjUUlllllunllu,'nlll"""lIfm.~

There was a marked increase in the
volume of acceptances executed by
accepting banks of this district and
which were outstanding on the last day of October.
The total amount of acceptances outstanding on
October 31st was $4,164,668.28, as compared to
$2,107,287.94 on September 30th. The volume of
acceptances executed against import and export
transactions increased from $1,558,687.86 on September 30th to $3,294,308.92 on October 31st, while
those based on the domestic shipments and storage
of goods increased from $548,600.08 on September
30th to $870,359.36 on October 31st. The amount
of this type of paper held by the Federal Reserve
Bank of Dallas was $32,117,720.46 on October 31st,
as against $26,791,824.41 on September 30th.

Acceptance
Market

Condition of
Reserve City
Banks

Reports from reserve city banks
reflect a further increase of $9,712,000 in their loans between October
3rd and October 31st. The loans of
these banks amounted to $224,378,000 on October
31st, as against $214,666,000 on October 3rd. The
volume of United States securities owned by these
banks declined from $55,426,000 on October 3rd to
$53,113,000 on October 31st. Their net demand deposits rose from $234,725,000 on October 3rd to
$251,102,000 on October 31st, or a net increase of
$16,378,000. During the four weeks' period their
bills payable and rediscounts with the Federal Reserve Bank increased $795,000. The ratio of loans
to net demand deposits was 89 per cent on October
31st, as compared to 91 per cent on October 3rd,
and 92 per cent on November 1, 1922.

ftl ll1ffU UlU lUunUNllutJtlllUWW l l lJ Ull mltlllllU lI lI l ll lIIlIll u m ll'I IIIIIII II Ulll ll rIIII ttll llll ll mUUllfIlIIll l lll lII lllliUltlU lIlI UlIIlUlllIlIIllI l lIIll l UllUtUII U tl llll1lIItlrIllIl ITIIUI I UlUIII I~ IIIIIIIIUlI I IIllI1 II I'IIIJ l tIIll lJ mUUJUIIIIWJIIJlIttJUIUllllltitlUliturllllUlt lllUU Ul IiI III 'i

1. Number of repor ting banks ... _......_ .._~ __ ... __ ... _..... _...__ .............
2. U. S. securities owned._•..... _ ..•_. __ .. __ ................. _...........................
3. AU other stocks, bonds and securities owned.... _ ...__ ......_... _.......... _
4. Loans secured by U. S. Government obligations................................

!
i

E
~

5. Loans secured by stocks and bonds other than U. S. Government
obligations .... _..___ ....~_. __ ._ ..... ___ .. _..... _ ............... _.....
6. All other 10ans. ___ ._.•.._. __ . __ ................... _....... _........... _........._..... _.
7. Net demand deposits...... _ ................. _...............__ ._ .... ____ ...........
8. Time deposits ... _........................... _ ... __._ ... __ ................._._.................
9. Re erve with Federal Reserve Bank..._ .................. _................. _.._._._
10. BiHs payable and rediscounts with Federal Reserve Bank................
11. Ratio of loans (t) t o net demand deposits ............._................... _..... _:
"Loans include only items 4 and G
.

1
~

§
§

CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES

Oct. 31, 1923

Oct. 3. 1923

Nov. 1. 1922

§
~

$ 53,113,000

$ 55,426,000

$ 47,417,000

12,309,000
3,060,000

11,275,000
2,938,000

8,396,000
4,386,000

62,888,000
221 ,318,000
251,102,000
76,833,000
28,447,000
8,617,000
89 %

57,363,000
211,728,000
234,725,000
76,027,000
25,695,000
7,822,000
91%

51,548,000
216,057,000
240,468,000
67,729,000
23,269,000
4,791,000
92%

~
~=:_

_
]

§
~

5muIIIIIII III UlU ltnlmttU Iu l tJuOJJJUJuuunuUUliutJmnw II IU lt l i lU1 1 I,UUI IIIIIII I I mU ll nll ll ll,uu l lmul l l 'llIlI lllllIIul jlu 11 rmlUll l nullllllwiuullIuJw II IIUUJ l tummllll l llllut',nnU l llllllllIlllllllunU lllIUIl II IllU I' llIInUUl lllll ll l1U1 1Im nll llllll llfllllUlll lluul lllni:
11I

Operations of
the Federal
Reserve Bank

Continued liquidation was obtained
throughout the past month, there
being 115 banks which completely
retired their lines with the Federal
Reserve Bank. On October 31st there were 208
borrowing banks, as compared to 323 on September
30th, and 237 on October 31, 1922. Loans to member banks declined $8,573,816.60 durin~ OctoQer, and

$3,997,330.70 during the first two weeks of November, bringing our loans down to $17,308,030.46 on
November 15th. On that date a year ago loans
stood at $16,594,932.09. Thus it will be seen that
while loans on the above date of the two years
were practically the same, 29 fewer banks were borrowing this year than last year.
During October this bank invested $10,000,000 in

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

Government securities. and made additional investments in bankers' acceptances. Due to the fact
that the open market purchases were insufficient to
offset the reduction in loans. the total amount of
bills held declined from $56.671.002.17 on September
30th to $53.423.081.62 on October 31st, distributed
as follows:
illlllUUIIJMnU .mul

.IIIIHUUIIJDIIIUIIUII11unnllullIlI l, ,,lIIlJfnHlUIUIIUIJI WUUrnllllUUmtlnll

tUlllun,umUIIIUIfIUUI'1

Member banks' collateral notes secured
G
by U. S. Government obligations .......... $ 4.705.600.00
• Rediscounts and all other loans to mernber banks .................................................. 16.599.761.16

Opeannc::)k~:..~~~~~~~~~...~~~.~~~~.~:..~~~~~~.~

and reflected an increase of $7,016.807.46 over those
of September 30th. On October 31st these deposits
were $4.183,320.12 in excess of those on the corresponding date last year. The large increase in
reserve deposits at this season of the year reflects
the heavy gains in member banks' deposits resulting from the marketing of the cotton crop.

32.117.720.46

Total bills held .......................................... $53.423.081.62

I
I

ilUUUI,"UIIllIIUIUUIUJUlUIIUUlllllllnIUIIIU IIIUIUtUlnUUIUIlUIIIUlIIIIIUIUIUUIUIIIIIUIIIUIII IIIIIIUUIIIIIIUUllu"n:nIWlUmG

Federal reserve note circulation. which reached
the high point of the current year at $60.280,750 on
October 20th, has gradually receded since that time.
The circulation of these notes on November 15th
amounted to $57,064.375, or slightly less than
those in circulation on October 31st. However, they
were $15,176.655 in excess of those in circulation
on November 15, 1922. The member banks' reserve deposits on October 31st were $59.146,596.18.

Movement of
The appended chart shows the
Loans to
movement of loans to member
Member Banks banks during the past two years.
It will be noted that during the
current year loans rose from $14,000.000 on January
1st to approximately $50,000.000 on September 1st.
During the first part of 1922 the gradual liquidation of old loans, which was greater than the new
demands, caused a recession from $50,000,000 to
$30,500,000 on May 15th. Between that date and
September 1st there was an increase of approximately $7,000,000 to finance the making of crops.
After September 1st of both years the trends have
been similar. and reflect the heavy liquidating season, but liquidation this year has been at a more
rapid pace than last year.

LOANS OF THE FEDERAL RESERVE BANK OF DALLAS TO MEMBER BANKS DURING 1922 AND 1923.

Deposits of
Member banks' deposits declined
Member Banks from $527.082.000 on April 25th to
$485,644.000 on July 25th, or $41,.
438,000 during the crop growing season. However,

between the latter date and October 24th deposits
had rison to $629,944.000, reflecting the large returns from this year's cotton crop.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

:!,rumlrlml1lrrllllU1lll11llrmIlITlIIIUlmmlrnnO-lomUltfllmrnnmIIUlIlllll1IIIIIIIIIIIIIJIllIUIIIIIIIIIIIIIIIIJlIIIIIIIIIIIIIIIIIIIIIIHIIIIII,mIlIllIIllIllJIIIIIIlIIIIIIII11I1I1II.11111II1I111IUIIIIIII'lllIlIl11rlllllUlllml1rrnmfrllu,rlllmUfilOUflllnUHlllllllHnhIIIIIUII'lllm,Ulliillrtrmr!i

I
~
i_-

§
~

§
§

DEPOSITS OF MEMBER BANKS
(OOO's Omitted)

April 25, 1923............... __ ._
....
M ay 23, 1923.............. _ _...
J une 27, 1923_. __~ .. ____ ._
J uly 25, 1923.. __ ._ ..... ___ ...
Aug. 29, 1923__ ._. ___ ._.
Sept. 26, 1923 __..____ ..... __ ...
0 ct. 24, 1923.. __ ..._ . __ ..

Totlll
D mand

527,082
514,274
496,227
485,644
501,088
574,4.21
G29,944

Ba.nks 1'n ClUes
WUh a l'opulation
Between 6.000 and
14.999

Banks in Cities
With a Population
Less Than 5.000

All Monnbez Banka
Total
Time

~~ I

Banks ill Cities
With a Population
Between 15.000 and
99.999

Over 100.000

Demand

138,213
139,612
141,251
139,868
139,356
139,472
139,728

Time

Demand

Time

Demand

Time

150,890
145,74]
139,013
133,796
149,580
186,786
209,681 1

18,021
17,902
18,261
18,507
18,516
18,344
17,447

87,901
86,847
84,832
84,405
87,772
101,334
107,980

20,885
21,626
21,692
22 ,014
22,989
22,978
2338-1

118,429
113,985
109,330
107,579
103,508
109,108
116,717

51,546
51 ,278
50,897
50,9 40
49,69 9
60,26 4.
50,5 41

Time

170,062
167,701
16a,062
169,864
160,228
177,1931
196,666

47,761
48,806
60,401
48,407
48,152
417,886
48,. 64
3

g
§

g
§
~

5 nu mnnnrnml1lllllmmml.lmnlllUlIllJlllllllmliUltllllllllllllllllllll1l1ll11lllllllIIIUl1II1111II11I1111II11Ll1l1l1l1ll1l1U111ll11ll11ll1ll11mU1J'111I1I1J 11II1I1I Wllluun1l1UIIIIIIJIIIIIIIIIII!lllIlIIl1lfUllllllllllllnlIIlUllltnII1Irn'fllllllllJlTlrunI1III1U1fIlinmmuulluunmmiT1llll11luf.

Discount
Rates

There is presented the "high,"
"low," and "customary" rates

charged by commercial banks in the cities listed
below .

• IIIIIIIIIIIUIIIIllI1D1mUlnnUUlllllfUllIIllllIIIIUlllilllllltlIIIILllltli l lli1I1wnUlIlllIIIIIIIlllWlllUUWIIIIIIUJlWHIJtlUIIIIIIIIHlIWllIJU'IIILUIU1Il1IIIIUlUlIIJl lllU Ilii1llIUIIIIII IIIIIIUlllllifUlllfllluumIUIU.IIIIIIIIIIIIIIIIIIUUUI!IUllIllIllJIUlIIUlIllUllmlllI'1II11I1IIUUlIIIII11UUl..:

OCTOBER DISCOUNT RATES

I
"

~
~

=
=
::

"
:=

=
~

I
=

=
§

;

~
i

1==

'UIIIIIlLlIIIIIUUlmnnunlllllllmllUIIIUU.lIIIIIUIIIIIIIIIIIIIIII'II,m1111111111111IIIIItIIIlIlIlII"UIIIIIIIIIIJIllt1iIIlIIllIlIIIIllIIIIllIllIUIIJIUIUUUIIIII.lIIiUlIUI11J1I11111111111JW"UIIIIIUII1UIJIIIUllllmUIUI",lIlnmnmnllllllllllllfllUIIIIIIUIiUUlllu1lliJ1111'UiU1tUJIlUIIIUWIUlIlUti"

Savings
Deposits

The savings deposits, as of October
31st, of 117 reporting banks in this
district which operate a savings department reflect a gain of 1.3 per cent over those
of September 30th, and 15.8 per cent over those of

October 31, 1922. The number of savings depositors, as reported by 107 of these banks, was 232,962
on October 31st, as compared to 230,083 on September 30th, and 200,394 on October 31st last year.

~llullnIIIIlIlIItIlIIlIlIIIllIlUIlIlI1lIlIIlIlUII1UIIIUllfl~lllIIlllllInlj'II'1UIJIIIIITnIlllUIIIIIlIIIUIJIlUUllltlllll'"ttnriIlIIIIlJ'llnhurIIIIIIILllfj IllIIIl1ll11lI11IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1UIIII1U rIlIlIlIUIJIUIIIIII(mllllllflllll1JlllmrnIlUunIlUl1IllllllllUlImIllHIUUII"Jlm,"lJInllllt"~

SAVINGS DEPOSITS

I\~~~~g4 :~~~:~~47 :c::~~:~68 D~31.] 2;~~,671 De~2.0 I
~
: 1~:~~~:l~~ ~:2~~:~9~ tif:~ l~~M:~ii tU ~
I ~i~~~o..~::::::::::~::::::::.:::::·:::::::~:::::::::::::::::::~::::::::~::~:::=:~:::::..1'
Fort Worth .................... ...........................................................
7
7,360,827
6,771 052
+ 8.7
7,254,197
+1.5 i

"I\ln1ber 01

Sept. 29,

Inc. or

Beaumont....... _._ .. .. _.. _ _........ __ ................._......_........ __...

= Galveston .................................................................................. '

I~:;;;t-;;-~:=~=-~:==~~:~::=:=:==-~:::I
;; Waco _. ___ ....... _ ................. __ .__ ... _.._._._ ..___ ._.. _._ ..... _
~ Wichita Fans .__ ....... _................_ _ _ _ .._ _ ._ ._._.
~ All others _.. __... __ ... _ ._.......... _ ..... __ ............ _... ___ ._ ... __

Inc. or

Total - _.. __ .--_._--.--.....- .._._.-......_.... _ ....... -.-..

6,950,531

6,071,146

+14.5

6,881,089

+1.0 ;;

5
3
61

2,511 325
1,525,183
16,585,025

1,835,297
2,347,716
14,399,845

+36.
-35.0
+16.2

2,454,547
1,439,141
16,494,070

+2.3 =+6.0 §
+.6 ~

1171

91,083,542

78,632,050

+15.81

89,930,181)

+1.3

'i 'i;m;m 'Hii;m H!:!j 2g:i~~~U t~:~ l
1

i.IIIlJIIUUmmmlJ1l1llflUmflllJlHnnntnllUmlllllHmlllll l llllmHlllflfilliUlIHIIIIIIIJlIIiIIIJlUfnl1l11llHrlllllllfhll'lHfllfllfililillll lllll ll l lllllllllllUl1lll11lllJllllfllllII11IIIIIIUIf/lllllllllllllllllllllnmuIIIIIIUlIIIIII'ffTnlUllllljlHTJ(IUlUIIUUUIUilUrtUIUUllluU1ulII,"urlllllm~

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

:!lJlHumUIiUnUllllmnlUfllUlIJllllllfIlllllllllllllllllllllllllllllltUUIlIIllIlIUIIIIIII1IIIIIIlll llllllllllll llmUUIIIIIIIUIIIIUIIIIIIIIIIIIIIIIIIIIII,illiIlUlllllltllllliU'"1IIIIIIIIIIIUIIIUUIlIlIIIlIIllIIIIIlIUIIIIIIIIUIIIlIlIIUIIIII"UIllIIIUII!lIf1I11UIIII1IIIIIIIJllIIIIIIIIII IIIIUIII III IIIlIIIIIIIIII,=

NUMBER OF SAVINGS DEPOSITORS
Number of
Reporting
Banks

Oct. 31,
1923

Oct. 31.
1922

Sept. 29.
1923

Beaumont __ ......................... _ .......... _.... _ ............... _................. _.......... _........ _._ ............._
Dallas ........... _....... _... __ ..._ .......... _._ ......_ .........__.......................................................
El Paso ...................._............................ _....... _........................................................................
Fort Worth........................ _ ....... _ _ _ .... _ _ ._ ... _ ..................... _ .........._ ...... _........ _
Galveston __ ................................................. _...................... _.......... _ _..... ___ ........ _ .
Houston ................ ___ .............. _ .... _....... _ ....... _ ... __ ........ _ .... _.................... .................
San Antonio ..................................................................._ ........ _.._ _......._... _............ _...... _
.....
Shreveport ..... _....... _... _._ .... __ ...... _ ..................._
.........................._............ .....................
Waco .......... _ ............................................. _ ......_.....................................................__ ...........
Wichita Falls ...........................................................................................................................
All Others _ .._ ........... __........ _._ ...... _.. _ .........._ . _ ...... _ ........... __ ... ""._"_,,

8
6
4
5
3
14
5
4
5
3
55

7,087
37,101
15,812
17,908
12,132
55,267
14,570
19 322
5,323
5,531
42 909

5,898
29,442
15,077
16,987
11,302
43,850
12,744
16,695
4,697
3,948
39,754

7,018
36,980
15,734
17,823
12,010
53,792
14,394
19,040
5,082
5,508
42,702

Total ......... _._ .._.......... _ ...................................._....... _ .......... _................. _.......... _..... _

107

282,962

200,394

230,083

:"'IIUIIIIIUUIIUlUlllllllllllrlllnfUIUUIIIIIIWJI IIIIUJIIW IliIlUlIIIIIIIIIIllIUlllllllU lllllllll lllllllllllllllllllllll ll llllll llllllluml nUllll1lliliU ItWl111111U1l mmllUll11111lthllUtltllllll,UZUJ1nIl UIUlmml tttllUllnlllllItI!UIIIIII1IIIUnullllllllllllnUlllllllllttIllUllllllhUlltIllUIIIIII"'l

FAILURES

The business mortality rate of the Eleventh Federal Reserve District again reflected an unfavorable
comparison with the previous month and the corresponding month a year ago. There were 111 failures in October (the largest number of defaulting
firms since January of this year) as compared to
79 in September and 91 in October last year. The
liabilities of failures occurring in October amounted
to $2,417,470 as compared to $1,757,766 during the
previous month, and $1,014,291 in October, 1922.
The combined statistics of all Federal Reserve
Districts show a sharp increase as compared to the
previous month in both the number of defaults and
the indebtedness involved. The number of failures
was the largest since March, and was more than
36 per cent larger than the September total. The
indebtedness of defaulting firms was exceeded only

once in history-December, 1921-and was 276 per
cent greater than the September indebtedness.
The accompanying chart on the number of failures
and the amount of liabilities involved in the Eleventh
Federal Reserve District shows the month-to-month
changes in the mortality rate during the past two
years. The number of failures, after reaching a
low point in July, 1922, reflected an upward trend
until the end of the year, then gradually declined
during the first eight months of 1923. The liabilities involved declined to the low point in October,
1922, but subsequently rose to the highest point on
record in April, 1923. While both the number of
failures and the volume of liabilities reached the
low point of the present year in August, it is significant to note that despite the activity of business
in this district, they have shown a sharp increase
during the past two months.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
lJ],r M v' .June Jurl!,l A ~
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NUMBER AND LIABILITY OF COMMERCIAL FAILURES IN THE ELEVENTH FEDERAL RESERVE DISTRICT
DURING 1922 AND 1923

PETROLEUM
The recovery of oil in the Eleventh Federal Reserve District during the month of October amounted
to 16,784,220 barrels, surpassing the previous higb
record by 462,460 barrels. There were 361 completions in all fields of the district during October, inCluding 281 producers which added 422,325 barrels
of new production. This compares to 481 completions in September, of which 339 were successful
with an initial production of 553,416 barrels.
The production in Texas fields totalled 14,741,506
barrels, which compares to 13,900,255 barrels during
the previous month. The new completions during
the month numbered 310 wells, of which 248 were
successful, yielding an initial flow of 441,513 barrels as compared to 421 completions during September including 305 producers with a flush production
of 552,336 barrels. As a result of the removal of
the limit on purchases and runs from outside leases
by three major pipe line companies during the early

part of October, the downward trend of production
in the North and Central-West Texas sections was
halted and a majority of the more important fields
showed a larger output in October than in the
previous month.
The output in the North Texas fields totalled
2,261,920 barrels in October as compared to 2,203,710 barrels for the previous month. There were 83
completions in October, of which 55 were producers
yielding an initial flow of 9,203 barrels as compared
to 118 completions in September including 77 producers with a flush production of 12,669 barrels.
The Archer County field again reported the bulk of
the new production.
The Central-West Texas fields again reflected a
large gain in production. The October output
amounted to 9,262,995 barrels as compared to
7,946,670 barrels in September. There were 164
completions, including 147 producers yielding a flush

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

production of 346,530 barrels, which compares to
204 completions in September of which 172 were
producers adding 473,202 barrels of new production.
The Corsicana-Powell field, which produced 6,495,240 barrels in October, reported 136 completions, of
which only seven were failures and netted 344,330
barrels of new production. This field has now
reached the point where the available facilities are
not suffiCient to take care of the production, which
has necessitated the pinching of some of the large
producers, and has delayed the drilling in of many
tests now on top of the pay sand.
A further decline in production was registered in
the Texas Gulf Coast field for the month of October. The month's production amounted to 2,596,250
barrels, as compared to 2,652,760 barrels in September, or a decline of 4,675 barrels in the daily average
yield. There were 80,255 barrels of new production

added from 31 producers completed during the month
as compared to a flush production of 11,105 barrels
from 20 successful completions in September.
The Louisiana production declined from 2,147,860
barrels in September to 2,042,714 barrels in October. There were 15 producers of oil completed in
October with an initial production of 812 barrels.
Crude Oil
Prices

During the past month there was a
reduction of 50 cents per barrel in
the posted price of North Texas oil
and 10 cents per barrel on Haynesville, Louisiana,
oil. Some individual companies which are large buyers of oil have further reduced the price not only
on North Texas oil but also on the other Texas oils.
On the whole, the market continues in a very unsettled condition.
""I"'IIIIIIHlHllm,"III I1J.III" lIlI nulll1l1tm""lIn "IIIIIIII'~

glllmUluulllUumu UIIUllUiJI.UUUllwu uaulll llllllwuWUwluullllu mllln llnnUlllllnlnt1ntfI IllIlIUtllJlllfn nutIIll IIiUlIUUlllllllllmUllllllllli. lIIiliummUUlnwUHmnlilitmUnn n lllllttl lllln, U
,

OIL PRODUCTION
October

INort!i~:~s

_____________________________ _ .... __ ._. __ .. __ ._,
_____
5 Central-West Texas --------------------.-.----.----------:
~ Texas CoastaL ________________________ ._______ .____________
§ Miscellaneous fields -----.----.-.-- ...-.--------------.---

Totals, Texas __________ ._____ .__ ._ .____ ._.___ _
__ .
______

2~:~a:,920

September

7:~:~5 2~;:~'710

Inorease or Decrease
~
ailY
Daily
Inc.
De:.
I
_
264 ,889 Inc. 1,316,325 Inc.
33,917 §:
88,425 Dec.
56,61 0 Dec.
4,675
.
36,571 Dec.
476,774 Dec.
16,560 i

7:~:7

Tota~8'210

9,262,995
2,596,250
620,341

Daily
298,806
83,760
20,011

7,948,670
2,652,760
1,097,115

14,741,506

476,532

13,900,255

463,342 Inc.

2,042,714

66,894

2,147 ,860

16,784,220 I

541,426

16,048,115

AVg~92

i North
2
E

Louisiana ______________ _
________ __ __ .___ -- -.--..-.-.

.
•
Totals, 11th DlstrlcL .... _..._.__ ...__ ._._.. i
_ _

I
=

841,251 Inc.

12,190

71,595 Dec.

105,14-6 Dec.

5,701

5349 37 1nco

736,105 I ne.

~
6,489 S

~
~

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FieldNorth Texas ___ .__ .__ .______________ ._ ._ ____ .. _________ .___ -_____________________________ ._______________________ --..
: Central-West Texas _______________ ... ___ __ ._ .______ .______ ._________ ------------.---------.-------------------~ Texas Coastal __________________________ ___________________________________________________ _
_____ .______________ .___
Miscellaneous fields. ______ .____________________ ._______________________________________________________________
Texas Wildcats _________________ _ _________ _
_____
_______ .__ ._____ .___________________ ._____ ___ .__ .____ ._______ .____
_
~
~

~=_

Totals, Texas _
_________ _ _ _ ___________________________ ----------------------. -.--------------------.__ ___ ____
North Louisiana ... _. __ ._________ ___ .__________ ._._. ___ .__ .. ___ .. __ ._____ .___ .___ ___ _____ __ ..... __ .. i
____
__
_ ._._. _.

I October totals, District. _________________ .__ _________ .________________________----------- --.---_____________
________
September totals, District .______ ___
___ .______ .___________
§

i
~
i
§

OCTOBER DRILLING RESULTS

*Includes 18 gas wells.

Completions
-83
164
37
14
12

Producers
55
147
31
14
1

Failures

Initial
Production
9,203
346,530:
G
80,255 ~
6,510 §
11
15

3101
51

2481
· 38

621
18

3611
481

281 1
339

801
1A2

28
17

_
441,513 ~:
812 §
442,825
553,416

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CRUDE OIL PRICES
;
Nov. 10,
Nov_ 11.
Nov. 10,
Nov_ 11. E
'"
'J.'Iexas1923
1922
Lonisiana1028
1922
~
~ Corsicana light ______ ._. ___ _ ___ ______ _ .________ $1.00
_____ _
____
$1.00
Caddo (38 gravity and above) .__________ __$1.25
$1.25 g-_
E
~:
Corsicana heavy _._ .__ ._ .__ _ ______________________ .50
_____
.65
Boll B ayou (38 gravity and above} _____ ._ 1.15
1. 15 i
Texas Coastal ___ .. _. ____ .___ _ _ ______ __ _ _ 1.00
_.
__ ___
_____ _____
1.25
Homer (35 gravity and above> ____ ________ 1.25
..
1.25 §
1=_
Mexia .......................................................... 1.00
1.25 •
Haynesville (as gravity and above) .A.A~ 1.10
1.10 ~
Currie __ ... __ .. _. __ ...... ____ .____ .....__ _.. __ .___ ..... --- 1.00
. ____ _
1.50
De Soto Crude_____ _ _ __ _ ____ __ ___ _._ 1.25
_______ _____
__ _
1.25
; North Texas (40 gravity and above)_ .. _ 1.25
*
~=
purch(*>sed 0 2 ParigcerSavflOtry NbaoSrl~sh TexasDoeiclemarbeern,ot19c2o2m. parable with 1923 prices, due to the fact that this oil was not :=
a 192 n
_
_
until
North Texas crude on Nov. 11, 1922, was selling for $1.50 per "
;; barrel.
"
~lIInUIlU"WUUfl1lmItmlll1 f1I1I1J1lJ1l1J"1 11 1111I11mlmmn11l1 1ll1lIlllIlItUlHln"ftlllltl l lllm l ulltnllllnmllflUJUnnlJlI,IIIIIIIIIUUlhlllll lUllll ll ulJlllllllllllllliUllIIllllllllllltllilIUIUlllltJl ltUllIIlIUIUUHunUllluullnUlUIUUUllilitUlUlUUll l l llll lllmUUl UUIllUIilUllu llii
(Oil Statistics Compiled by The Oil Weekly, H ouston, Texas.)
!!

::
E
_

MONTHLY REVIEW OF BUSINESS AND

L~DUSTRIAL

CONDITIONS

LUMBER
caused a decline in stocks from 16 per' cent below
normal on September 30th to 19 per cent on October 31st.

The output of Eleventh District pine mills reflected a gain during the past month, being 3 per
cent below normal production in October as compared to 6 per cent in September. October shipments were 7 per cent above production as compared to 7, per cent below production in September. On the other hand, orders received during
October showed a considerable decline, being 9 per
cent below normal production as compared to 3 per
cent above normal production in September. The
unfilled orders on the books of 48 mills on October
31st amounted to 59,695,880 feet, as compared to
73,079,986 feet on the books of 47 mills at the close
of September. The heavy shipments in October

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=_-!~

1
_

NumberOCTOBER PINE MILLS STATISTICS
of reporting mills............
48
Production ...................................... 102,986,658 feet
_ Shipments ........................................ 109,782,597 feet
~ Orders .............................................. 96,742,019 feet
;: Unfilled orders October 31st........ 59,695,880 feet
~ Normal production ........................ 106,617,411 feet
'_
"
i
Stocks, October 31st ...................... 261,441,485 feet
!I
Normal stocks .......................... _.... 321,860,559 feet
Shipments above production........ 6,795,939 feet= 7%
i Actual production below normal 3,530,763 feet= 3%
"
Orders below normal production 9,775,392 feet= 9%
~ Stocks below normaL. ................... 60,409,074 feet=19%
=
---

;;
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BUILDING
While there was a sharp increase in the number
of projects begun in October, being the largest for
any month of the present year with the exception
of May, a noticeable slackening occurred in the estimated cost of construction. In October the number
of permits issued at eleven cities was 2,916, with
a valuation of $5,058,798, as compared to 2,596 per-

mits issued in September with a valuation of $6,515,395, and 2,638 permits issued in October, 1922, with
a valuation of $5,118,395. The valuation of permits
issued at these cities during the first ten months
of 1923 was 24.7 per cent greater than the valuation of those issued during the corresponding period
of 1922.

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BUILDING PERMITS

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CEMENT
A further decline of 9.5 per cent was noted in the
production of Portland cement of Texas mills during October, but the output was slightly above that
for October, 1922. Shipments during October reflected an increase of 6.9 per cent over September
shipments, but were less than the October produc-

tion. Stocks at the mills on October 31st amounted
to 227,000 barrels, as compared to 220,000 barrels on
September 30th, and 161,000 barrels on October 31,
192-2.
Production during the first ten months of the
current year gained 21.8 per cent, and shipments
gained 15.6 per cent.

Po, C~, !

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~

~_, _

PRODUCTION, S7,:'NTS :.:o~~~=~J~ P:~":NDp:E:,NTFh" T~
I
1923

Production of Texas mills ..... _...... _.
Shipments from Texas mills. ___ ..._
Stocks at the end of the month at
Texas mills __ ...._ ....___ ~____............_.

iumuuJI

1922

lne. or Dec.

1923

In•. or Dec.

1928

Mo.,,"
1922

Inc. or Dec.

iii

+21.8 ~
+15.6 ;

332,000
326,000

330000
821,000

+.6
+ 1.6

367,000
305,000

-9.5 3,600,000[2,955,000
+6.9 3,669,000 3,088,000

227,000 1

161.000!

+41.0

220,000

+ 3.2 .a ....___~__ ____ -",. _
~
...... _ a___
_ _____

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MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by /he Federal Reserve Board as of November 24. Iq23.)

Production of basic commodities and retail trade
increased during October, and the volume of freight
shipments and wholesale trade continued large. The
level of wholesale prices and the volume of employment showed but little change.

PRODUCTION.

The Federal Reserve Board's index of production
in basic industries advanced 3 per cent in October,
after having declined for four months. The increase for the month, while due in part to the resumption of anthracite coal mining, also reflected
increases in textiles, lumber, sugar, and most other
industries included in the index. Employment at industrial establishments showed practically no change
between September and October. Contract awards
for new buildings increased throughout the country
considerably more than is usual at this season, and
were 25 per cent larger than in September. Residential projects formed a larger proportion of the total
than in any earlier month of the year. Crop estimates by the Department of Agriculture on November 1st indicated a substantial reduction from the
September forecast in the yield of cotton, but larger
yields of corn, potatoes, and apples.

TRADE.

Heavy movement of miscellaneous merchandise
and livestock resulted in October in the largest railroad shipments of any month on record. Wholesale
trade was 12 per cent larger than a year ago, and
sales in all leading lines except shoes showed increases. Department store sales were 13 per cent
larger than last October, and sales of mail order
houses were the largest of any month since 1919.

PRICES.

Wholesale prices declined less than one per cent in
October, according to the index of the Bureau of
Labor Statistics, and stood approximately at the
level of a year ago. The principal changes for the
month were declines in the prices of fuel, clothing, metals, and animal products, while wholesale
prices of crops, particularly cotton, increased. During the first half of November the prices of wheat,
hogs, pig iron, and hides receded and prices of cotton
and cotton goods, cement, and copper advanced.
BANK CREDIT.

Since the middle of October there has been a slight
decline in demand for credit for commercial and agricultural purposes at member banks in leading
cities. Considerable decreases in borrowings for
these purposes in the N ew York and Chicago districts were partially offset by increases in other districts. Loans secured by stocks and bonds increased
somewhat, while investments continued to decline,
and reached the low point of the year.
The total member bank accommodation at Federal reserve banks declined between October 17th
and November 21st, and on the latter date was the
lowest since the middle of the year. The total volume of Federal reserve bank credit outstanding,
however, remained relatively constant because of
increased purchases of bills bought in the open market. The volume of Federal reserve notes in circulation declined by about $50,000,000 during the
period, while other forms of money in circulation
increased.
Money rates showed an easier tendency, and during the early part of N ovembel' the open market
rate on commercial paper in New York declined
from 51,4 to 5 per cent.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

INDEX Of PRODUCTION IN BASIC INDUSTRIES
COM81NATION Of 21 I~JOIVIDUAL SERIE5
CORRECTED fOR SEASONAL VARIATION
( IJ,O a fOO'

OC R CENT
16 0

PER CENT
160

~'!!I!
------,

14 0:=

140

120

100

• •

~ DJ

M!J

1:.1

120

I 00

~
~
~

<'0

Note:

1919

1920

1921

1922

192)

Base Adopted by United States Bureau of Labor Statistics

ELEVENTH FEDERAL RESERVE DISTRICT

. . . . --1_--,•
N.MEX.

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--...-..."

mPaso

DALLAS~

•
!---.
J

P ' - _... ~-.~- •• --.J

r.1

TEXAS

""',t_-,

,
•
•

BOUNDARY OF ELEVENTH DISTRICT
- - - BOUNDARIES OF BRANCH TERRITORIES
BOUNDARIES OF STATES
FEDERAL RESERVE CITY
•
FEDERAL RESERVE BRANCH CITIES

Full text of Review (Federal Reserve Bank of Dallas) : December 1, 1923

FRASER