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" " " " " " " " " " " " '9 MONTHLY BUSINESS REVIEW ] ~ OF THE ] FEDERAL RESERVE BANK OF DALLAS C. C. WALSH Chairman and Federal Reserve Agent CHAS. C. HALL-W. J. EVAN~~ I~ ~;"'"t F,~d""1 R"::"" A9"~J ~~~====~)r~~~~)r~~~~)es=~~)~r~~(~C~:~rrn~p~i~le~d3)~r~~o~v~e~rn~:~re~r~1~5~,~)~~9~3~2~)~~)es=~~~~~~~~~~~~~ [ ~lurne 17, ~O. 10 DaII as, Texas, Decern ber 1, 1932 This COpy is released for pub- ""TO Jication in m ornin g papers J.'i vern ber 30 DISTRICT SUMMARY THE SITUATION AT A GLANCE Elovonth Federal Reserve Dislriot ------------------------------------------Ootober Chonge from n---~~----------------~ih d)Obita to individu.l .ooounla (nt 17 DePa;: •• ••••••••••••••••• ,''', •• ,.,'''". ltC80r mgnt store salcs" ................... , of ~~ntb~~ ,loan8 to member bonks at end e bank r~iioai'~~d 'or';';o~ih:::::: COlDlnng pormit valuation at larger oentors, , , , C~lDlD~;~i:1 f:::~~cs (ru~li~o.r) ')" ...... , ..... , 011 prod t' cs (.a • t.cs .. " ......... , ~o .on (barrels) , , ..... " ......... , " ft:.rt September 1932 ---------·1--------$483,752,000 8,964,781 40 .8% 755,638 106 '.::: $ :j: In~ - - lD.O% 2.7 2,763,2~0 +6U~ +123 .2 20,222,150 . 10 + points b ' Pan ~rIng October business generally reflected a moderate exres s~on, OVer September, and the comparisons with the corof ~h ndlng month last year were better than in any month of decurrent year prior to September. The October sales lha epartment stores in larger cities were 6 per cent larger cen~ the previous month, but showed a decline of 15 per line rom the same month in 1931. While the sales in some sions of w,holesal e trade reflected less than the usual expan\lie\ atfthls season, this development was not surprising in Ced~ 0 the large increase in business during the two preIt\o~~g mon,ths. Retailers continue to buy cautiously and for y for Immediate needs, orders being made frequently l'atj small lots. Collections showed an improvement. The reta~l of collections to outstandings in both wholesale and Or th trade was larger than in either the previous month e COl'l'esponding month last year. \Ye~Olllmercial insolvencies in this district during October cons'dmore numerous than in the previous month, but fell debt Iderably under the total in October last year. The inill e~thness of defaulting firms was substantially above that large .er comparative period due to the failure of some Th-sIzed concerns. liqUid ~nancial situation was characterized by a further atton of borrowings at the Federal Reserve Bank, and ;n a gradual though moderate expansion in the commercial loans of member banks in leading cities. The loans of the Federal Reserve Bank to member banks amounted to $7,729,000 on November 15, as compared with $10,331,000 on October 15, and $22,927,000 on the corresponding date a year ago. The "all other" loans of reporting member banks in leading cities, which turned upward late in August, reflected a further moderate expansion between October 12 and November 9. The investments of these banks showed only nominal changes during the period. The deposits of all member banks in this district reflected a further slight increase in October. The daily average of combined net demand and time deposits amounted to $602,906,000 in October, as compared with $600,331,000 in September, and $689,838,000 in the corresponding month last year. Weather conditions during the past month were ideal for lhe maturing and harvesting of crops, and increased the yield of cotton. On the other hand, dry weather reduced the yield of some feed and minor crops and retarded the growth of small grains. A general rain over the district is needed to stimulate the growth of small grains, and to facilitate fall and winter plowing, Ranges and livestock continued in good condition, and livestock are expected to go into the winter in good shape. The ample supply of range grass and other feeds will be an important factor in sustaining the condition of livestock during the winter months. The movement of livestock to market has been retarded by the good ranges, the poor demand, and declining prices. The valuation of building permits issued at principal cities receded to a new low level, the total for October being 7 per cent less than in the previous month, and 78 per cent below the corresponding month last year. The production of cement reflected a sharp decline as compared with both the previous month and the corresponding month in 1931. Shipments of cement showed a sizable increase over September but were considerably under October, 1931. ' BUSINESS According to the reports received from wholesale firms in the Eleventh District, chand' some slackening in the demand for merand se Was in evidence in certain quarters during October sonal ~ early part of November. While a contrary-to-sea&racer'Increase of 2.7 per cent was shown in the case of gOods les, the sales of drugs, farm implements, and dry tribUti:ere on p. smaller scale than in September, The disn of hardware reflected an expansion of less than the th usual seasonal amount. Decreases as compared with October 1931, ranged from 0.8 per cent in the case of hardware t~ 22.3 per cent in the case of farm implements. While the comparisons with a year ago, in the case of all lines except hardware, were somewhat less favorable than in September, they were materially better than those shown in other recent months. Declining prices of many commodities, and some uncertainty regarding the course of business in the immediate future have acted as retarding influences on buying. In- This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ~------------------------------~~~==~~~~~~---------------------------------------~ 2 MONTHLY BUSINESS REVIEW ---------------------------------------------------------------------------------------~ ventories on hand October 31 showed smaller declines from a year ago than were registered a month earlier. There was a further substantial gain in the volume of collections during the month. The demand for dry goods at wholesale during October was 17.0 per cent less than in the previous month. This decline, though in part seasonal, was chiefly attributable to the fact that a non-seasonal gain of 20.4 per cent was shown in September. Sales were 17.6 per cent below the level of October, 1931. The movement of seasonable merchandise was delayed by the mild open weather prevailing during most of the month. The ratio of collections to accounts outstanding at the close of the previous month amounted to 29.5 per cent, as against 26.9 per cent in September. The volume of sales reported by wholesale grocery firms in the Eleventh Federal Reserve District during October reflected a further increase of 2.7 per cent over the preceding month, whereas a decline often occurs at this period. Most of the purchases were of a fill-in nature and were made necessary by the fact that merchants bought sparingly in the early fall season. Sales of merchandise showed a reduction of 8.0 per cent from the level of October last year, as compared with a like decrease of 7.3 per cent in September. Collections were in appreciably larger volume than in the previous month. Partly as a consequence of the substantial improvement which was witnessed in the previous month, the business of wholesale drug firms during October reflected a decrease of 3.7 per cent. The comparison with the same month last year was only slightly less favorable than in September, the decline amounting to 14,.7 per cent. Sales since July 1 have averaged 20.4 per cent under a year ago. The month's collections showed a gain of 12.0 per cent over September. The distribution of hardware expanded somewhat further in October, following the usual trend at this time of year, and was on a scale 3.1 per cent larger than in September. This improvement was visible in most sections of the district. Sales during the month were only 0.8 per cent less than a year ago, but for the period from July 1 to October 31 there was a decline of U.S per cent. The month witnessed a substantial pick-up in collections. The usual expansion in sales of farm implements during October was not in evidence last month. The business of reporting firms was on a scale 13.2 per cent under that of September, and 22.3 per cent below that of October a year ago. The chief adverse influence was the reduction in iJli come which resulted from the unfavorable price trend ~ many farm produ cts. There was a seasonal improvement In the volume of collections. CONDITION OF WHOLESALE TRADE DURING OCTOBER, 1932 Percentage of increase or dC'Jre8!o in- ----------------~---------------------------- Net Salcs Net Sales Stooks Ratio of collco' October, 1932 July 1 to date October, 1932 tions during oc~ compared with compared with comparoo with to acoounts g Oct., Sept., same period Oct., Sept., notes 0lltstan 'D 1931 1932 lnat year 1931 1932 on Sopt. 30 -8.0 +2 .7 - 12 .0 -10.7 +2 .3 77 .0 -17 .6 - 17 .0 - 16.0 -26 .4 - 0.0 29.5 -22.3 -13.2 -37.7 - . 8 +.1 3.7 - .8 + 3.1 -11 .0 - 10.9 - 1.1 31.9 -14 .7 - 3.7 -20.4 -16.8 + . g 36.5 r Grocerics .. ....... Dry goods ........ Farmimplemenl<l.. Hardware ........ Drug8 ......... . .. . the Although there was a slackening In r' rate of increase, the distribution of JJ1.e g chandise at department stores in lea d~JI cities of the Eleventh District was on a higher scale durlJlr. October than that in the preceding month. The dollar '10 d ume of sales was 6.1 per cent above that in September, ~n while the recession of 15.1 per cent from the correspondln~ month of 1931 was not so encouraging as the 8 per ~en decline reported last month, it was, with this one exceptIOJl~ the most favorable percentage recorded of any similar coIll, parison during the present year. Due to the small seaso~t increase of sales the Federal Reserve Bank's index of e, partment store sales, which makes allowances for seas.on~. changes, declined 2 points to 68.1 during October. DIs~l bution during the period from January 1 to Octob~rd of 1932, was 24.9 per cent less than in the same pen o 1931. dure . Merch ants followed the customary busmess proce nt during October and increased their inventories 9 pel' ce of over those a month earlier, but their stocks at the closeber the month were 26.2 per cent below those held on Oct°this 31, 1931. The rate of stock turnover during October the year continued above that a year ago, but the rate f?r the first ten months of 1932 was 2.27, as against 2.34 )n like period of 1931. Ile c' Although the improvement was partly seasonal, cOver tions during October evidenced an appreciable increase °ber those in September, and were also above those in Octo ut. last year. The ratio of October collections to account!! °8S standing on the first of the month was 32.7 per cent, ef compared with 27.7 per cent in September, and 32.0 p cent in October, 1931. Retail Trade BUSINESS OF DEPARTMENT STORES Totnl sales (percentage): October, 1032, compared with October, 1031............ .. ...... .. .... .. .. ....... Ootober, 1032, compared witb September, 1932................... . ............ ... January 1 to date compared with sarne period lnat ycar. . . . .. . . .. . .. . .. .. • .. .. .. . . Credit Bales (pcrcentagc): Ootober, 1932, compared witb Ootober, 1981.. .. .. .. .. .. .. .. ... ..... .... .. .. . .... October, 1932, compared with September, 1032 ... .. ... .. .. . . .. ... . ..... ..... .... January 1 to date compared with sarno period lnat year . . . ...... . . ... . ... ........ . Siocks (percentage): October, 1932, compared with October, 1931......................... .. .......... October, 1932, compared with Septembor, 1982.. . ........... .. . ... .. . . . ... .. .. .. . Stock turnover (rate): Rate of Btock turnover in October, 1931. ... . .. . ..... ..... .. . ... .. ...... ..... .... Rate of Btock turnoverin October, 1932.. ........................ . . .......... ... Rate of stock turnover January 1 to October 31, 1981. .. ... ... ... ................. Rate of stock turnover January 1 to October 31, 1932............ ................. Ratio of Ootober colloetions to accounts receivable outstanding October 1,1932 . .... .... . Indexes of department store sales: Unadjusted October, 1932 .............. '" ........................... '" . .... . AdjuBted October, 1932.............................................. .. ....... Indexes of department store Btocks: Unadjusted October, 1932........ . . . .. . ............. .. .... .. .... . .. ...... .. ... Adjusted October, 1932. . .................................................... . I -- Dallas -12.4 +14 .6 -22.4 Fort Worth - 18 .1 +11 .7 -26 .3 Houston -19.3 - 0.7 -27.0 San Antonio - 8.0 .4 -28.3 - Others -10 .2 + 3.0 -22.7 Total District _16. 1 + 0.1 _24.9 - 13 .9 +11.7 -23.3 -16.4 +10 .2 -24.8 .7 --24.0 -30.3 -14 .0 - 3.8 -28.9 -22. 0 + .0 -25.3 _17.2 + 5.7 -25.g -19.8 + 7.5 -22.6 +7.4 -40.3 +13.5 -29.1 +17 .6 -24.8 + 0.0 _26. 2 + 9.0 .29 .32 2.42 2.2g 34.g .20 .22 1.83 1. 73 26.8 .22 .3a 2.44 2.73 35.g .20 .39 3.14 2.98 35.3 .22 .24 2.11 2.01 29.1 83.6 68.5 85.8 75 .3 79 .4 76.3 68 .2 60 .g 51.9 46 .3 74 .8 65.0 53 .8 46.4 40 .1 35.5 .25 .30 2.34 2.27 32.7 78 .3 68. 1 60. 9 60.4 J -------------------------------~~~====~-=~==~~~~======~-----------------------------MONTHLY BUSINESS REVIEW 8 ---------------------------------------------------------------------------------------------~ Commercial Failures While the business mortality rate in the Eleventh District during October was In . considerably higher than in the previous onth, It showed a material reduction from the level of the fio.rresponding month last year. The liabilities of defaulting IInS were substantially larger than in either comparative month. According to the report compiled by R. G. Dun & Company, there were 105 insolvencies in this district during the month, with liabilities of $2,763,239, as compared with 65 failures in September, owing $1,237,934., and 130 defaults in October a year ago, the indebtedness of which totaled $1,930,446. AGRICUL TURE Crop Conditions The open weather during the past month · was very favorable for the maturing and tt' harvesting of crops in the Eleventh Disf Ict, and farmers made good progress with practically all s~:t~ wo~-k. The cool winds and scant rainfall left the top in I many secti?ns, which is now impeding fall p.lo~ c ry weather durmg the month also reduced the mdlha ed production of some crops. The seeding of small grains p~~ P~oceeded rapidly, but on account of dry soil stands are he r In some sections and plant growth has been slow. A fic~1 general rain over the district would be very bene- f' Elln no~he cotton crop in some sections of the district showed a tio Iceabl e improvement in October. The estimated producn th· o.f C?tton in the three leading cotton states attached to in I~ dlStl'lct was increased by the Department of Agriculture tio lIs November 1 report with the result that total produclVa~ rf ~r the district, as compiled from the State reports, bal alsed from 4,,741,000 bales on October 1 to 4,938,000 andes on November 1. The largest gain occurred in Texas in thwas caused principally by the pronounced improvement Stat e Northwest, West, and West-Central districts of the th ate! where the per acre yield is reported to be greater than by thn The per acre yield for the State was estimated Parede .epartment of Agriculture at 146 pounds, as comlen. e With 165 pounds in 1931, and 126 pounds for the bal Y ar average. Total production was placed at 4,225,000 . 162,000 bales greater than the October 1 esties wI' lIc h IS the ~te, but considerably below the large crop of 1931. In the estern half of the State the yield is considerably above The aVe.rage but is below the average in the Eastern half. bale:s~rn~ted production in Louisiana was increased 40,000 41 000 brIng October, and that for Oklahoma was raised el(~en ales. Picking and ginning of cotton made fair to Pick' ent. progress in all states attached to this district. Tel( Ing IS well advanced in the older cotton sections of Statas W1~ is proceeding rapidly in the Western half of the onlye' 9 1I1e ginnings in Texas, prior to November 1, totaled the 2' 56,000 running bales, which is considerably below gene~vir~ge of the past ten years, picking did not become well.a In the heavy producing sections of West Texas until Into October. Peed oPS d' bel' 1 Th Id not turn out as well as expected on Octofl'otn 'th e production of corn in this district, as compiled Agric Ie November 1 State estimates of the Department of with l~te, amounted to 117,226,000 bushels, as compared bUShel ,558,000 bushels on October 1, and 109,442,000 Tel(as S tarvested in 1931. Most of the decline occurred in bUShel were the estimate was reduced from 108,433,000 1. 'l'hi s on October 1, to 102,726,000 bushels on November the la ~ latter estimate, however, is still considerably above estitn:t year's yield of 94,24,8,000 bushels. The November 1 ~educeds f?r Louisiana, New Mexico, and Arizona were also tel(as .slIghtly as compared with a month earlier. The Depart PI oduction of grain sorghums was estimated by the Pared tn.e t to be 62,715,000 bushels on November 1, as comWit 66,896,000 bushels on October 1, and a harvest i;26. h of 60,000,000 bushels in 1931. The reduction was due to the dry weather prevailing over the State and to frosts in Northwest Texas. Dry wealher and frosls also greatly reduced prospects for grain sorghums in Oklahoma. The indicated production was reduced from 19,392,000 bushels on October 1 to 14,,544,000 bushels on November 1, and compares with an actual yield of 12,987,000 bushels last year. The production forecast of this crop for New Mexico was 3,686,000 bushels, which was considerably below that a month earlier or last year's harvest. The November 1 prospects for most minor crops either reflected slight declines from a month earlier or showed no change. The November 1 estimates for sweet potato production were reduced slightly in all states attached to this district, but the output will exceed that of a year ago. The peanut crop in Texas promised 99,000,000 pounds on November 1, which was 4,500,000 pounds less than the estimate a month ago, but 13,670,000 pounds above last year's harvest. The Louisiana yield was reduced from 8,4,00,000 pounds on October 1 to 5,700,000 pounds on November 1 and the latter figure co~pares with 7,800,000 pounds pro: duced last year. The estimate for the Texas rice crop remained unchanged at 8,418,000 bushels, which is somewhat below last year's production. Other crops showed no material change from a month ago. Reports indicate that weather conditions during October were favorable for fall vegetables, and most crops have made fair to good growth. Harvesting of fall vegetables in South Texas has started and will soon be well under way. Livestock Range conditions in this district declined slightly during October but continued generally good. While weather conditions were favorable for the curing of range feeds, winter grass and weeds did nol make normal growth due to the lack of moisture. In most sections of the district, however, range feed is plentiful and prospects for grazing are well above the average. In South. ern New Mexico rains improved soil moisture and increased the supply of stock water. Livestock generally are expected to go into the winter in good condition and should winter well on account of the ample supply of feed. The condition of cattle ranges in Texas declined from 91 per cent of normal on Octobel 1 to 88 per cent on Novembel' 1, yet the latter figure is 14 points higher than that of a year ago, and is the highest for any corresponding date during the past 5 years. The condition of cattle declined slightly in all sections of Texas, except Southern and Southwest Texas, with the State average reported as 87 per cent of normal on November 1. This figure is 1 point below a month earlier, but 7 points higher than a year ago. AI. though sheep and goat ranges in Texas declined 5 points during the month, the 91 per cent of normal condition obtaining on November 1 compares with 76 per cent on the corresponding date last year. The condition of sheep and goats showed an improvement of 2 points during the month and was well above the condition on November 1, 1931. Range conditions in New Mexico improved slightly during _4_______________________ M_O_N_T_H_L_Y__B_V_S_IN_E_iS_S__ R_E_V_IE_W ____________________ October, but there was a decline in the condition of livestock. In Arizona a decline was reported in the condition of both ranges and livestock. The receipts of cattle, calves, and sheep at the Fort Worth market during October were larger than in the previous month, but were substantially smaller than in the corresponding month of 1931. The number of hogs yarded in October, while slightly lower than in September, was moderately larger than in October last year. Movements and Prices of livestock drifted to lower levels during the past six weeks due to the poor demand. Prices on all classes of cattle were I unevenly lower. Quality cattle usually sold to a fair to good I advantage, but lower grades were hard to move. The hog market reflected a steady decline throughout October, but showed a good recovery during the first half of Novemberi TIle lamb market showed some strength during the last ha of October but turned weak during the succeeding twa weeks. The supply of wethers has been limited and prices have ruled fairly steady. Despite the small receipts, market prices for most classes Cattle .......... . Cnlves .. ....... . Hogs ........... . Shoop .......... . 1032 35,504 26,104 15,880 44,249 October 1031 56,012 40,464 13,575 54,312 + 32,583 19,032 10,877 28,591 October October S6.40 1031 $7.50 5.60 4.50 1982 Change over September Change over year 1032 month -20,508 -14,270 2,305 -10,063 COMPARATIVE TOP LIVESTOCK PRICES (Dollars por hundredweight) --------------~~~~==~~=--------------r FORT WORTH LIVESTOCK RECEIPTS (Number) October -~ I + 2,021 + 7,162 907 +15,658 Beaf steers .............................. . Stocker steers ........ ......... . . . . . ..... . Butcher cows ....... .... ................ . Stocker cows ............ .... . ........... . Calves .. ......... . . .. ... ............... . Hogs .. ... ...... ......... ...... .... .. ... . ~:I:.;:::::::::::::::::::::::::::::::::: 5.50 3.75 3.00 5.50 3.05 2.00 4.50 Sep\eDlbc 1932 $7.75 5.60 4.00 3.40 4.00 5.25 6.00 6.10 4.50 5.50 4.40 2.25 4.76 FINANCE The loans and deposits of member banks in selected cities reflected a further expansion between October 12 and November 9, and their investments showed little change. Investments in United States securities amounted to $90,620,000 on November 9, which was $781,000 less than four weeks earlier, but $16,301,000 above those on the corresponding date last year. While investments in other stocks and bonds were increased $354,000 during the period, they were $5,159,000 below a year ago. Loans on securities declined $22,000 during the four-week period ending November 9, but "all other" loans (largely commercial) showed an expansion of $3,761,000. Commercial loans have shown a steady increase since the low point was reached toward the latter part of August. The net demand deposits of these banks totaled $225,575,000 on November 9 as compared with $219,182,000 on October 12. Time deposits rose $253,000 during the same period. Combined net demand and time deposits on November 9 were $37,522,000 less than on the corresponding date in 1931. Their borrowings from the Federal Reserve Bank amounted to $420,000 on November 9 as compared with $4.0,000 on October 12, and $11,834,000 on November 11, 1931. Condition of Member Banks in Selected Cities be recalled that borrowings at the Federal Reserve Bank showed a sharp expansion during the fall of 1931. The r~; cession in borrowings during the past month was broug y about entirely by the liquidation of indebtedness of coun;8 banks, as the borrowings of reserve city banks reflecte the slight expansion. There were 177 banks indebted to 'w Federal Reserve Bank on November 15, as compared d\e 214, banks on October 15, and. 229 banks on the same aes in 1931. The holdings by this bank of bankers' acceptanChe purchased in the open market amounted to $858,000 a${S' middle of November which compares with a total of ~. 162,000 on November 15 last year. Investments in GOV~!ch ment securities rose to $4,3,221,000 on November 1~, wind was $2,500,000 greater than holdings a month earlier, ade. $23,591,000 greater than those a year ago. The reserve 000 posits of member banks reflected an increase of $1,407~45' between October 15 and November 15, but the total of hO~ 170,000 on the latter date was still $5,027,000 ~elowf t red . on the same date last year. The actual circulatlOn 0 No' eral reserve notes totaled $39,282,000 at the middle. of and vember, as compared with $37,841,000 a month earher, $51,621,000 on November 15, 1931. CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thousands of dollars) Nov. 9, United States sccurities owned ............ . All other stocks, bonds, and seourities owned. Lo.ns on securities ...................... . All other loons .......................... . Totnlloans ............................. . Net demand deposits .................... . Time deposits ........................... . Reserve wi th Federal Reserve Bank .. ..... . Bills payable and redisoounts with Federal Reserve Bank ......................... . Nov.11, Oct. 12, 1032 $ 00,620 57,587 71,885 171,263 243,148 225,575 128,269 26,177 1031 S 74,310 62,746 85,753 211,603 207,446 257,537 133,829 31,040 1932 S 01,401 57,233 71,907 167,502 230,400 219,182 128,016 26,704 420 11,834 40 Nov. 15, Total cash reserves ...................... . Discounts for member bonks .............. . Qther bills disoounted .................... . Bills bought in the oJ,>8n market ... ........ . United States securitIes owned ............ . Other investments ....................... . Total earning IlB8cts .................... .. Member bank reserve deposits .. . . .. . .•..•. Federal reserve notes in actunl circulation •.• The past month witnessed a further liquidation of the indebtedness of member banks at the Federal Reserve Bank. These loans amounted to $7,729,000 on November 15, as compared with $10,331,000 on October 15, and $22,927,000 on the corresponding date last year. It will Nov.15, 1032 1931 $ 53,061 22,927 17 18,162 19,630 7 60,743 50,107 51,621 $ 41,9~~ 10,3 Nonc 866 l 40, 72 51,O~~ 43,6 37,841 cepting Total acceptances executed by aCd'ng ot banks in this district and outs tan 1 $1,' the close of October amounted t; 733,' 843,992, as against $1,570,872 a month earlier, and $ ~ontb 915 on October 31, 1931. The increase during the n the occurred in the classification of acceptances based 0 sopol domestic .shipment and storage of goods, and it was sea in character. Acceptance Market Operations of the Federal Reserve Bank 1032 $ 43,018 7,729 256 858 43,221 5 62,060 46,170 30,282 ____ oot, 16, MONTHLY BUSINESS REVIEW 5 ---------------------------------------------------------~ Deposits of Contrary to the marked downward trend Member Banks which was followed at this period last d year, the combined daily average of net de~and and time deposits of member banks in this district Unng October reflected a further slight increase. The aver· sge amounted to $602,906,000, as against $600,331,000 in c eptember, and $689,838,000 in October a year ago. As S~~~ared with the previous month, there was a decline of wh" ~,OOO in the net demand deposits of reserve city banks, Ie. was more than offset by gains in the other classiIi CatIons '!'-::- against a like decline of 26,0 per cent in September. With one exception, all reporting cities participated in the in. crease over the preceding month. DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) Abilene......... Austin.......... Beaumont....... Corsicana....... Dallas.. ........ EI Paso.. ....... Fort Worth...... Galveston.. ..... Houston.. .. .... Port Artbur..... Roswell......... San Antonio..... Shreveport. . . . . . Texnrkana·.. .... Tueson.......... Waco........... Wichita Falls. . . • • DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) ---------------------------------~ct., Combinod Total Reserve City Banks Country Banks Net domand Time Net demand Time Net demand Time deposita deposita deposits deposita deposita deposita 0:" Jan" Feb" Ma;' ~rii: ay, June July,' Aug., Sept Oot.:' 1931. ..... $487,314 1931 ...... 483,979 1~31. . .... 474,935 32 ...... 468,172 1932 10 ...... 400,110 19~~' ..... 461,557 1032" .... 445,050 19 ...... 434,865 19~~""" 422,594 193 ...• .. 421,727 409,254 19 2" .. " 413,201 413,100 10~~:::::: $202,524 203,719 202,094 100,782 190,572 194,887 101,203 190,729 189.066 180,905 187,008 187,040 189,710 $232,544 231,910 220,307 221,790 222,116 221,835 216,040 212,117 207,155 209,225 201,130 202,121 200,582 $119,826 121,817 122,674 118,475 118.093 117,339 115,7a2 115,872 lJ5,634 lJ 4,505 114,532 113,037 110,180 ,254,770 252,060 248,538 246,~73 240,004 230,722 228,401 222.748 215,439 212,502 208,124 211,170 212,008 $82,008 81,002 70,420 78,307 77,579 77,548 75,561 75,357 73,432 72,490 73,370 73,103 73,530 Debits to Individual A.,ccounts The October volume of debits to indivi· dual accounts at banks in principal cen· ters in this district, which amounted to of 12 $4,83,752,000, reflected a seasonal gain de .3 per cent as compared with the previous month. The ~rease from a year ago amounted to 30.4. per cent, as Ootober Oetober 1032 $ 5,050 13,106 12,480 2,994 142,700 13,541 51,654 22,611 110,521 3,926 1,927 41,905 22,492 5,362 7,153 11,830 8,410 1031 $ 6,258 19,560 10,091 4,260 107,001 20,487 72,754 26,770 175,005 7,044 2,575 04,090 28,521 8,203 10,120 18,048 12,482 Poreentage Percentage ehange over September ebange over year 1932 month $ 4,107 13,318 12,241 2,568 128,037 12,314 43,004 17,311 104,282 3,691 1,024 37,452 22,481 5,179 5,326 9,972 7,601 - 10.2 -33. 0 -34.0 -29.7 -27.8 -33. 9 -29. 0 - 15.5 -33. 8 -44.3 -25.2 -34.5 -21.1 -34.6 -20.3 -37.5 -32.6 +20.5 - 1.6 + 2 0 +16'6 +11'5 +10'0 +20'1 +30'6 +11' 7 + 6" +18'7 +12'1 +'1 + 3 '5 +34 :3 +18.7 + 10.7 Total. .. .. .. 5483,752 $694,777 -30.4 1430,508 + 12.3 . ~Includes the figures of two banks ia Texarkana, Arkansas, located In the Eighth Dlstrlet. Savings Deposits A general increase of 0.5 per cent was reflected during October in the volume of savings deposits on record at 139 reporting banks in this district. The amount reported on the last day of the month was $138,959,04.6, as against $138,. 232,863 011 September 30, and $153,262,144 on October 31 last year. The decrease of 9.3 per cent from a year ago was the most favorable comparison shown since September 1931. ' SAVINGS DEPOSITS -------------------------~~---------------------------Number of rera~~g umont ................. 88 ... ......... ........ .............. ................ ~rth' eUston n .. . .............. Port Arth...... · ........ · .. San Anton~r . ........ . .... . ShrcvopO t'o , ............ .. Waco r .. .... ...... ... . WiChita Ii '11' .•....•...•••• All others as .............. .. .... ........ ... ~ 3" O· 2 4 4 II" 2 7" 1 3 3' 87" m Ootober 31, 1932 Amount of Number of 8Bvings savings deposita depositors 5,998 S 2,973,871 73,596 10,558 33,735 17,230 65,617 4,310 14,271 23,033 10,324 2,842 50,173 25,387,471 3,332,000 11,320,187 10,069,730 30,260,136 1,813,105 14,057,186 0,950,401 5,608,810 2,325,540 21,870,351 October 31, 1931 Amount of Number of saviD~s savinge deposita dopositors 4,404 75,643 10,500 34,894 18,024 60,763 4,657 12,706 25,357 10,035 3,036 53,541 Percentage ehango ovor year In savlogs deposita + - S 3,450,802 27,2 15,312 3,142,661 12,040,802 11,805,762 32,947,525 1,862,880 15,044,651 11,237,061 5,705,223 2,569,106 25,489,000 13 .8 6.7 0.0 10.4 15 .4 8.2 2.7 6.6 11 .5 2.7 9.5 14 .2 September 30, 1932 Number of Amount of savings savin!!s depositors deposita 6,016 73,720 10,524 33,785 17,286 65,817 4,271 13,700 23,060 10,254 2,810 51,001 Percentage ehange over month in savings deposita $ 2,969,665 25,208,312 3,280,801 11,162,377 10,130,623 30,000,784 1,812,305 13,847,364 9,908,598 5,547,856 2,316,685 21,840,403 ;otal .. .... ......... 311,087 $138,050,046 322,500 $153,262,144 - 9.3 312,272 $138,282,863 Only 2 banks in Beaumont, 6 in Dollas, 10 in Houston, 6 in San Antonio, 2 in Wiehita Falls, and 71 in "All others roported the number of savings depositors. + .1 + .7 +1. 3 +1.( - .7 + .5 0. 0 +1.5 - .5 +1.1 +.4 + .1 --+ .5 ~ NOVEMBER DISCOUNT RATES Prevailing rates: -----------------------------------~---.------~------.-------.-----~~----~------Dallas EI Paso Fort Worth Houston San Antonio 5-6 5- 6 5-6 5-6 6 6-8 5*6 5*6 6-8 4*7 6-7 6-8 6-8 (HO 5-7 5- 7 5-7 7-8 6-8 6-8 6-8 7-10 7-8 7-8 5-7 8 Waco i;---=~~----------------------~~~-I--------I-------I-------I--------I-------I--~=-ter~~:rgod eustomers on prime commercial paper such as is noW eligible for 5-7 6-8 4J.f-O 3-7 0-8 !tato cha:o~nt undor the Fedoral Reservo Aet .................................. . !\ate on Ig on lonns to other banks securod by bills receivable .................. . includ~ansl secured by prime stock exchango or other eurront oollateral (oot Oln g onns plaeed in other mnrkota through oorrespondent banks) : !tate eha;~n:,~~~·:::::::::::::::::::::::::::::::::::::::: ::: :::::::: : :::::::: ~ttleo~:~~~~~~ .~~~.r. ~~~~r.~. ~~. ~~r.e~~.u.s~.~e.c.e~~~: .~t~::::::::::::::: 8 6-8 6-10 6-8 6-10 ~ INDUSTRY Cottons d /lrodu ee Although somewhat smaller than usual, cts a further seasonal increase was evidenc· lions ed during the past month in the operaState of {!ottonseed oil mills in both Texas and the United respo~d?n the other hand, the comparisons with the corIng month of 1931 were not so favorable, there being a decline in the receipts and crushings of seed and the production of all products. As a result of this recession the volume of activity, at mills located in Texas, duri~g the three months of the present season fell below that in the same period last season; at United States mills, however all operations except receipts of seed remained above tho~e in - MONTHLY BUSINESS REVIEW 6 that period of 1931. Inventories of cottonseed held by crushing establishments on October 31 reflected the usual increase over those a month earlier, but at Texas mills they were smaller than those on hand a year ago. Supplies of cottonseed products held on the last day of October were larger than usual. They were seasonally above those a month earlier, and considerably larger than those a year ago. STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texas United States AuguBt 1 to Octoeer 31 August 1 to October 31 Thia senson Last Bcason ThiBseason Last season Cottonseed received at mills ~ 055,338 2,347,200 2,563,013 (tonB) .... ...... . ........•• 721,131 Cottonseed crushed !tons).. . . . .,: 515,778 531,183 1,433,076 1,376,768 Cottonseed on hand Oct. 31 Ig.h.l , (tons).. .. .. .. .. .. .. .. .. .. . 38Q,621 437,648 1,214,157 1,201,020 Crude oil produecd (pounds)... 161,524,078 155,468,562 437,686.860 424,586,236 Cake and meal produced (tons) 240,135 247,011 646,521 617,087 Hulls produced (tons).. . .... .. 151,873 162,644 406,818 386,061 Linters produced (runniDg hales) ..................... 60,802 68,815 221,612 213,420 Stocks on hond, October 31: 28,432,830 26,377,904 85,788,046 64,632,204 Crude oil (pounds) ........... 90,260 46,009 308,788 137,314 Cako and meal (tons). ... .. ..• Hulls (teDs) ............ ..... 103,566 83,104 257,430 160,100 271,711 248,008 Liotors (ruooiog bnles) ........ 78,165 60,847 I'" Textile Milling As reflected by the domestic consumption of cotton, the increased activity, which has been in evidence for some time, continued during October in the Nation's cotton textile industry. A seasonal increase was shown as compared with the previous month, and consumption was again above that in the same month of 1931. The 502,244 bales of cotton coneumed during October represents an increase of 2.2 per cent over September's consumption of 491,655 bales, and an increase of 8.9 per cent over the 461,023 bales consumed in October, 1931. During the period from August 1 to October 31 this year consumption was 3.4 per cent above that in the corresponding period of 1931. Stocks of cotton on hand October 31 in consuming establishments were greater than those a month earlier or a year ago. The consumption of cotton and the production of cloth at reporting Texas textile mills were curtailed during the past month, contrary to seasonal tendencies, but they continued above a year ago. Orders for finished products on hand at the month's end were also smaller than those thirtyone days earlier, but greater than those held on October 31, 1931. Stocks of products held at the close of the month were above those a month earlier and a year ago. COTTON CONSUMED AND ON HAND (Bales) Cotton-growing BtatCII: Cotton coosumcd ... ..... . .. 00 hood October 31 inConsuming catabliBhmente. Publio .torage aDd comprCIIBcs ................ United States: Cotton conBumed ........• .. 00 hand October 31 inCon.uming CIItnbli.hmeDte. Public storage aod comprCIIBcs ....... ........ . October 1032 (14,572 602,244 October 1031 378,144· 461,023 ago. During the first quarter of the current season the combined exports from both points of concentration were fractionally smaller than those in the same period of the pre· ceding season, and receipts of cotton evidenced a material reduction. Stocks of cotton held at the ports on October 31 showed the usual increase over the previous month, but they were less than those a year ago. A further large seasonal increase was witnessed during the past month in the total foreign exports of cotton fro~ all United States ports, but a small decline, the first In many months, was shown as compared with the corre· sponding month of 1931. There were 1,008,023 bales of cotton shipped during October, as compared with 733,665 bales in September, and 1,014,180 bales in October a year ago. Movements during the first three months of the current season aggregated 2,193,84,2 bales, which represents an increase of 23 per cent over those in the same period of 1931. Although the current season's exports of cotton to Oriental countries have been considerably below those last year, importations by Japan continue materially above the average, COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bnles) Rcceipte ............ ... ..... . Exporte ....... . ............ . Stocks, October 31. .......... . October 1932 472,650 215,486 October 1031 602,061 208,505 August 1 to Ootober 31 This season Last season 712,540 737,400 358,780 313,669 815,083 824,803 COTTON- GALVESTON STOCK STATEMENT (Bnles) For Great Britoin .. .......... ... ........ ..... .. .... .. For France .. ... ...................... ....... ....... . For other roreign porte ...................... .. .. .. ... . For constwise porte . .............. ... ............... . . In compresses nnd dcpote ............................. . Oot. 31, 1932 0,500 4,500 41,500 1.500 758,083 Totnl ................... . ................ . 815,083 Oet.31, 1031 0,000 6,200 44,800 1,000 764,803 - 824,808 ...,." COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (BnICII) Rcceipte ..................... Exporte . .......... . ......... Stocks, Octobor 31. ...... . ... . October 1032 528,751 281,703 . ....... Ootober 1031 1,016,620 408,855 . ....... August 1 to This scasoo 008,065 672,465 1,300,715 - Ootober 81 Last senso D 1,501,611 718,896 1,405,646 --= SEASON'S RECEIPTS, EXPORTS. AND STOCKS OF COTTON AT ALL UNITED STATES PORTS- (Bnlea) August 1 to October 31 Thi. seasoo Last BcasOO 1,160,708 1,007,440 1,011,105 851,786 9,388,000 0,108,868 1,300,500 1,350,388 1,266,816 1,108,034 0,826,875 0,460,691 Rccolpte ....... .. ... ..... . ........................... Exporte: United Kingdom ............................ Franco ..................................... Italy ....................................... Germnny ............................ •. ..... Other Europo ............................... an ...................................... AI other countries ......................... ,. Totnl rorei§" porte . ....... .................. Stooks nt nil United tutes porte, Ootober 81 ............. Jnr August 1 to This SOBBOO 3,057,044 363,500 203,080 208,301 602,120 257,133 361,651 107,161 2,108,842 4,244,438 October 31 Lost sCD80n 3.470,849 204,515 71,588 141,002 807,649 100,728 431,684 337,146 1,783,4~~ 4,387,6 ~ ~ Cotton Movements The exports of cotton from the ports of Houston and Galveston were seasonally larger during October than those a month earlier, and at the latter port were greater than in the like month of 1931. Shipments from Houston were 31.1 per cent less than those in October, 1931. The receipts of cotton, at both ports, also reflected an increase of a seasonal nature, but they were in much smaller volume than a year SPOT COTTON PRICE5-(Middling basis) (Ccnte por pouod) NewYork ............................... New Orlenos ............................. Dallas .................................. Houston ................................ Gnlvcstoo ............................... October, 1032 High Low 7.15 6.15 6. 11 7.10 6.05 5.60 5 .U5 7.00 6.00 6.05 - Nov. 15, 1082 0.40 6.34 5.85 6.20 6.25~ MONTHLY BUSINESS REVIEW Despite a reduction of 30,400 barrels in the daily average output of crude petroleum in the Eleventh Federal Reserve District during October, the month's total production, which amounted to 29,222,150 barrels, was slightly higher than that of September. However, there was a large decrease of 3,685,150 barrels as compared with October, 1931. Drilling activity turned upward again, there being 865 new wells completed during October, as against 752 in the previous month. The initial yield from successful wells increased to 4.,023,04.5 barrels, as against 3,662,063 barrels in September, and 5,424,609 barrels in October last year. Petroleum 7 North Louisiana was slightly higher than in the previous month. OCTOBER DRILLING RESULTS Daily production from Texas fields during October ahtnounted to 880,850 barrels, which is 31,150 barrels below t e average of the preceding month, and 107,930 barrels rnder a year ago. While all areas participated in the decline rom September, the largest reduction was shown in the Gulf Coastal region. Production in both New Mexico and Nortb Telas .. . .• .... .•.. .. Central Woet Tel.... . ...... Eost Central Tex........ . .. Soutb To.................. Texos COMtal .••••• •. •..... Completiona 113 51 513 77 61 Producere 42 26 407 36 43 Gos wells 2 Total Texaa ....... New Mexico ...••.. .. ...... North Louisiana ••• •• ..•.•.. 815 9 41 644 7 12 9 Ootober total•• distriot ...... Soptcmber totals. district ... . 865 752 663 612 Failures 69 20 16 40 17 Initial production 5.182 8.580 3.036,485 18,830 43.152 4 162 2 25 4.012,220 5.829 4.087 13 9 189 131 4.023,045 3.662.063 5 1 1 CRUDE OIL PRICES Telas Coastal (.O gr. and abovo) . .. .... .. . . ............ North Telas IIDd North LouiaillDa (40 gr. and above).. ... Nov.11, 1032 51. 10 1.12 Nov.lO, 1031 5 .86 .85 OIL PRODUCTION- (Barrola) ~rtb TOIM . . ........... .. . . E ntral West TOIOS .. . . . ..... . Tnat Contral Toxos .......... . S GOll8tal.. .... .. ....... . out Telos ....... .... . .•... e, Ootober. 1032 Total Daily avg. 2,014,000 04.000 5,775,300 186,300 12,076,600 418,600 3,054,050 127,550 1.686.400 54,400 Total Telos. . . . . . . . . 27.306,350 MOlioo .... . . . .......... 008.000 ortb Louisiana... . . .. . . ... . . 026.000 880,850 31.000 20.000 - 53.650 + 33.400 + 50.000 -31.150 + 50 + 700 Total Diatriot. ....... 20.222.150 042.650 + 30.650 -30.400 N NOW (Oil.tatiatica compiled by Tho Oil Weekly, Houaton, Tema) I norcoso or doorcoso over Soptcmber, 1932 Totol Daily avg. + 31.000 - 2,100 - 23,700 - 7,000 +142,600 - 0,200 - 250,450 - 12,600 + 46,900 250 Building Construction activity in the Eteventh District declined further during October, as evidenced by the reduced value of building permits issued at principal cities. The total valuation of these permits amounted to $755,538, as compared with $808,014 in September, and $3,378,018 in October a year ago. Despite the average decrease of 6.5 per cent from the previous month, the cities of Fort Worth, Galveston, Port Arthur, San Antonio and Shreveport showed appreciable gains. BUILDING PERMITS Ootober. 1932 Valuation ma~illo . ...... uatln ......... eaumont .... . . ~;r,ua Cbriat!. . IP:· · · · ··· ·· t orth . . .. . a vcaton .....• ouaten ... . . . : ort Arthur n Antonio·. : : : rovoport .. .. . 0; Vi· ·· .... . nco. iohita ·FtiJia: : : Total .. .... Ootobor, 1031 No. No. - - - --49 -17 $ 6.564 07 06 30 255 44 02 143 201 31 200 130 24 11 07.336 13.780 2.830 113.010 26,060 102.600 42,088 174,213 5,041 76.305 57,402 31.360 5.140 105 100 53 257 44 167 118 284 51 222 150 27 10 Porcentage obango valuation over year Valuation $ 02.733 130.154 59,776 27.670 257,076 33.031 1.350.000 258.507 774,270 27.743 262.888 36,120 64.300 2.841 - - - - - ---1.371 $ 755,538 1.646 $3.378.018 Cement -92.9 -25.2 -76.0 -89 .8 -55 .8 -21.1 - 02.4 -83.4 -77. 5 -81.8 -71.0 +58 .0 - 51.2 +80.0 -77.6 Septembor. 1032 No, Valuation 26 $ 20.702 102.353 100 02 15.244 29 11.129 101.231 243 54 34.135 157 84.628 184 27.107 174.737 190 4,792 26 184 62.054 132 32.172 36,407 28 10 11.323 -1,464 - -5 808.014 -- A reduction of 48.9 per cent was shown in the output of Portland cement at 21~as mills during October. Total production amounted to Pre ,?OO barrels, as compared with 4.27,000 barrels in the y VI0US month, and 601,000 barrels in the same month last ear. Shipments increased 21.0 per cent, the month's total l' Percentage ohan&e valuation over month --68.3 - 4.0 - 0.6 -74. 6 ~0.4 -23 .7 +21.2 +58.6 .3 + 5.2 +23.0 +78.4 - 13 .9 -54.6 - - 6.6 Ten Months Percentago obango 1932 1031 \'aiuntion over period No, No, Valuation Valuation 218 $ 277.013 475 $ 2,664,791 - 89.6 018 5.077.757 065 1.881.254 +160.0 865 272.654 1.041 1.033.457 - 73 .7 328 129.840 505 467.090 - 72.3 2.735 2,178.558 3.164 4,060,958 - 46 .4 407 313,767 709 022.282 - 66.0 1.263 1.250.403 1,867 5.192,827 - 75.0 1.410 483.193 1.241 2,172.783 - 77.8 2.051 2.401.030 3.160 10.447.087 - 76.2 367 82.045 506 000.051 - 00.9 1.825 1.459.562 2.277 2.523.043 - 42.2 1.226 408.570 1,489 853.643 - 52 .1 303 270 327.718 1.770. 165 - 8l.5 156 401 ,360 109 142.778 +244.1 14.072 $15,242,870 17.877 535.039.059 - 56 .5 being 381,000 barrels. They were 34.6 per cent below the level of October, 1931. Stocks on hand at the close of the month, which amounted to 554.,000 barrels, were 22.7 per cent less than a month earlier, and 0.7 per cent smaller than a year ago, PRODUCTION, SIDPMENTS. AND S'J100KS OF PORTLAND CEMENT (In tbousnnda of barrola) -------------------------------------~--------------------------------------------- f~~~~:::~~li8: otlon .•. :: :: :::::::: :: :::::::::::::::::: :: :: ::: :::: : :::::::::::::::::::::::::::: : ond of month at TOllla milia . • .• ...•..... •. ... .•• ••..••. ••.. ..•. .•••.•.••••••••• .•••••• •••••.. October 1032 218 381 55' ~ ohange from pt. Ootcber 1932 1031 --48.9 -63. 7 -34.6 +21.0 -22 .7 .7 - Jan. 1 tbrough % obange 00t.31. from 1082 year 3,110 --42.7 3.281 --42 .2 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board as of November 22. 1982) Volume of industrial output, after increasing considerably during August and September, remained unchanged in October. Factory employment and payrolls reported for the middle of the month showed a further increase. During October, as in the last three weeks of September, wholesale commodity prices declined and in the first three weeks of November the general average was at the level of early summer. PRODUCTION AND EMPLOYMENT Industrial production, as measured by the Board's seasonally adjusted index, continued in October at 66 per cent of the 1923-1925 average, as compared with a low level of 58 per cent in July. In the textile industries, which had shown a rapid expansion in August and September, there was a slight decrease in consumption of raw materials while output of finished products increased somewhat. Shoe production, which also had increased substantially in re cent months, showed a seasonal decline. Operations at steel mills expanded from an average of 17 per cent of capacity in September to 19 per cent in October, contrary to seasonal tendency, and, according to trade reports, continued at about this rate through the first three weeks of November. Production of automobiles in October declined further to a new low level. At coal mines activity continued to increase rapidly until the middle of October, but since that time a reduction, largely seasonal in character, has been reported. Employment in most manufacturing industries increased between the middle of September and the middle of October, and the Board's seasonally adjusted index of factory employment showed an advance from 60 per cent of the 1923-1925 average to 61 per cent. At textile mills working forces increased by considerably more than the usual seasonal amount, and substantial increases were also reported at steel mills, lumber mills, and car-building shops. In the canning and automobile industries there were decreases in employment. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, continued at low levels during October and the first half of November. The Department of Agriculture's estimate of the cotton crop, based on November 1 conditions, was 11,950,000 bales, about 525,000 bales larger than the estimate a month earlier. DISTRIBUTION From September to October, volume of freight traffic increased by more than the usual seasonal amount; ~fter the middle of October carloadings declined, reflecting chiefly seasonal developments. Dollar value of department store sales increased by the usual amount in October. WHOLESALE PRICES Wholesale commodity prices, as measured by the monthly index of the Bureau of Labor Statistics, declined from ~5 per cent of the 1926 average in September to 64 per cent In October. Weekly figures show declines in the general average from early September through the first week in NoveJl!' bel', reflecting reductions in the prices of many domest~C agricultural products and their manufactures, as well as lin the prices of steel rails, copper, coffee, rubber, and silk. n the second week of November prices of many leading coIJImodities including grains, hogs, cotton, silk, zinc, lead, and tin advanced considerably, but later the prices of these commodities declined. BANK CREDIT Volume of reserve bank credit showed little change fot the four-week period ending November 16. Member ba~ balances at the reserve banks increased further by $75': 000,000 and in the middle of November were about $47 000,000 in excess of legal reserve requirements. This groW~ in reserve balances reflected an increase of $60,000,000 lk the stock of gold and the issue of additional national b~n notes. Demand for ,currency showed little change dur~ng the four-week period. Loans and investments of reportln~ member banks in leading cities, outside New York City an Chicago, declined further between the middle of Octo.hef and the middle of November, reflecting a further reductI°i of loans at these banks. In New York City the investmentsd~_ member banks increased by an amount larger than the crease in loans so that total loans and investments of these banks showed a further increase. Money rates in the ope~ market continued at low levels during October and the fi rs s half of November. Rates on 90·day bankers' acceptan ce IJI' were unchanged at % of 1 per cent, and rates on prime CO mercial paper declined from a range of 1%.2 to a range of 1%.1% per cent. h