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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