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MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents
C. C. WALSH
Chairman and Federal Reserve Agent
(Compiled November 15,1934)
Dallas, Texas, December 1, 1934
Volume 19, No. 10
This copy is released for pub-
licntion in morning papers-
Dec. 1
DISTRICT SUMMARY
THE SITUATION AT A GLANOE
Elovonth Fedoral Rosorvo Distriot
Ootober
1034
Bank dobit. to individual aeoounts (ut 17
D oitios) ............. .. . . ............. .. .. .
opartmont otore oales .. .. . . . ... . ...... . .. . .
eoorvo bank loans to mombor banks at ODd
of month ............ . . . .. . ...... . ..... . .
eocrvo bank ratio at ODd of month ...... . .. .
B
CuildiDg r,crmit valuation at largor con tors ... .
Commoro 01failures (numbor) ... .... . .. ..... .
Opmmoroial failures (liabilitieo) ............. .
II produotion (barrols) .... . . . . ..... ..... . . .
n
n
$627,184,000
0,388
63 .2%
S 1,700,8M
$
189,152
31,757,050
Chango from
Soptombor
+
+
0.6%
1.4%
- 83.8%
No obange
+ 17 .6
+ 51.0~
+ 2.20
0.3
-
The demand for merchandise in wholesale and retail
channels of this district was fairly well sustained during
the past month despite the retarding effects of the ~nusually
Warm weather. The sales of department stores m larger
centers reflected a gain of 1 per cent over those in September .and were 8 per cent greater than in October a year .ago.
W}nle the increase over the previous month was consIderably less than seasonal the distribution in August and
September expanded m~re rapidly than usual. Business
at wholesale in most reporting lines reflected a fUl:ther
expansion over the previous month and was materIally
above that in October last year. Collections repor~ed by
~oth wholesale and retail firms again showed a notIceab!e
Illlprovement. Debits to individual accounts at banks m
leading cities of this district evidenced a seasonal gain of
10 per cent over the previous month and were 12 per cent
larger than in October, 1933.
The agricultural and livestock industries continue to reflect the effects of the prolonged drouth, w~ic~ remai.ns
Unbroken in much of the western half of the dlstnct. WhIle
the November 1 report of the Department of Agriculture
di~ ~ot change . materially the estimated production of
prmclpal crops m states attached to this district the low
y,ields in~icate the extremely unsatisfactory growi~g condi~IOns dunn!? the current sea.son. O~ particular importance
IS the scarCity of feed supplIes, whICh will not only affect
adversely the making of 1935 crops but has created a serious problem relative to the carrying of livestock through
the win~er. This. situation has been ag!?ravated by the lack
of suffiCIent gram pastures as the contmued drouth over a
large area of the .district has retard~d the seeding and
growth of small grams. As range grass m the drouth area is
practically exhausted, livestock must be fed or moved to
other areas. While the situation has been partially relieved
by the heavy purchases of cattle, calves, and sheep by the
Federal Government, a severe winter may cause substantial
losses as livestock generally are going into the winter in
poor condition.
The daily average of combined net demand and time
deposits of member banks in this district during October
rose to $778,176,000, which compares with $751,533,000 in
September, and $622,963,000 during the corresponding
month last year. The commercial loans of member banks in
selected cities reflected a further expansion between October
10 and November 14, but there was a reduction in their
investments. The demand for Federal Reserve Bank credit
continued light. The volume of Federal reserve notes in
actual circulation showed little change between October 15
and November 15, but the total on the latter date was considerably larger than on the corresponding date last year.
Construction activity in principal cities of this district
evidenced a substantial betterment in Octoher. The valuation of building permits issued was 52 per cent above the
September volume and 133 per cent larger than in the
corresponding month last year.
BUSINESS
The demand for merchandise at wholesale in the Eleventh Federal Reserve
District was well sustained in October,
although business was better in some lines than in others.
Appreciable increases occurred in the lines of farm implelllents, hardware, and drugs, while declines from September
~ere reported in the case of groceries and dry goods. Sa~es
In every line were higher than in October, 1933, the mcreases ranging from 1.1 per cent in the case of dry goods
to 101.3 per cent in the case of farm implements. Inventories held by reporting firms on October 31 were substan-
/17 holesale
Trade
tially larger than a year ago in the case of every line except
hardware. Increases over Septemher were registered in the
volume of collections during the month in all lines with the
exception of groceries.
Distribution of dry goods through wholesale channels
during October was on a scale 23.0 per cent smaller than
in the previous month, the decrease heing attrihutable in
part to seasonal factors. The unusually high temperatures
prevailing during October re~arded the distribution of sea.
sonable merchandise. Sales were only 1.1 per cent above
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
those in the same month last year, as against a similar gain
of 28.0 per cent in September. Wholesale inventories were
further reduced by 6.1 per cent in October, but at the end
of the month were 9.2 per cent greater than a year ago. The
volume of collections exceeded that of September by 28.7
per cent.
A second monthly expansIon of larger than seasonal proportions occurred in the demand for hardware at wholesale
during October. The business reported by twelve firms in
this district reflected an increase of 13.3 per cent over the
previous month, and was 14,.7 per cent better than in October a year ago. For the period from July 1 through October
31 of the current year total sales were 8.2 per cent above
those in the same period in 1933. Stocks on the last day
of October were reported to be less than either a month
earlier or a year ago. A material increase was shown in collections during the month.
In spite of the favorable comparisons which were shown
in August and September, a further gain in the business of
wholesale drug firms was witnessed during October. The
increase over September amounted to 7.3 per cent, whereas
there is usually little change in this month. Distribution
during October registered a gain of 13.5 per cent over the
same month in 1933, which is larger than the average expansion that has been shown in the four months since midyear. Inventories were substantially larger than on either
September 30 or October 31 a year ago. The month's collections were 9.6 per cent greater than those in September.
While a further small improvement usually occurs during October in the wholesale grocery business, sales reported last month showed a decline of 8.9 per cent from
September. However, they were 10.9 per cent larger than
in October last year, and for the months from July to October, inclusive, a similar gain of 16.3 per cent was recorded.
Stocks on hand increased 12.3 per cent during the month.
Following the material gains of the two preceding months,
the volume of collections in October fell off somewhat.
Sales of farm implements increased further in October,
as is usual at this season, the volume being 7.0 per cent
greater than in September and more than twice as large as
in the same month last year. No material change in prices
was reported during the month. Collections were slightly
larger than in September.
CONDITION OF WHOLESALE TRADE DURING OCTOBER, 19S4
Pcrcentagc of increasc or decrease inNet Sales
Stocks
Ratio of calicoNet Sales
July 1 to date Oct., 1934 tions during Oot.
Oct., 1934
oompared with compared with to acoounts and
compared with
Oct., Sept., sarnc period Oot., Sept., notes outstanding
last year
1933 1934
Soptember 30
1933
1934
+16 .3
+16.3 +12.3
76 .3
Groceries ......... + 10 .9 - 8.9
Dry goods ........ + 1.1 -23 .0
+11.6
+ 9.2 - 6.1
39.5
Farm implements .. +101. 3 + 7.0
+76.0
+ 8.2 - 3.7 :..:.":;;
4i1:.S
Hardware ...... .. + 14.7 +13.3
+ 9.0
+14.2 + 7.0
50.1
Drugs ........ . ... + 13.5 + 7.3
While the rate of increase in consumer
demand for merchandise at department
stores in principal cities of the Eleventh
District was somewhat lower during October than is usual
for that month, business held up fairly well considering the
unseasonably warm weather during the month and the brisk
movement of merchandise in both August and September.
The dollar volume of sales was 1.4, per cent above that in
September, and 8.3 per cent greater than in October a year
ago. As a result of the small seasonal increase in sales during the month this bank's seasonally adjusted index of
department store sales declined from 85.9 per cent of the
1923-25 average in September to 74,.3 per cent in October,
which compares with 71.0 per cent in October, 1933. Distribution of merchandise during the period from January 1
through October 31 this year continued 22.7 per cent above
that in the corresponding period of 1933. Recent reports
indicate that department store business again turned upward during November with the appearance of lower temperatures.
Inventories of merchandise held by department stores on
October 31 reflected a further seasonal increase of 9.3 per
cent over those a month earlier, and were 4,.6 per cent
greater than those held on October 31, 1933. The rate of
stock turnover during the first ten months of 1934, was 2.51,
as compared with 2.32 in the corresponding period last
year.
Collections on both open and installment accounts evidenced a large seasonal increase during the month. The
ratio of October collections on open accounts outstanding
on October 1 was 40.4. per cent, as against 35.3 per cent in
September, and 34.4, per cent in October last year. Installment account collections rose from 13.0 per cent in September to 15.1 per cent in October.
Retail
Trade
BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
Ootober, 1934, oompared with Ootober, 19S3 . ............. ... . .. . . . .. . . .. . .......
October, 1934, compared with Septomber, 1934 ........... . . .. . .... ... . .. ........
January 1 to date compared with samc period last year .... , ..... , . ....•..... , ....
Credit sales (perccntnge):
Ootober, 1934, compared with Ootober, 1933 ................ . ....................
October, 1934, compared with September, 1934.. ................ . ................
January 1 to date compared with same period last year ........ . .... ........... , ..
Stocks on hand at end of month ~ercentage):
October, 1934, compared wit October, 19a3 .... . .. .. .... .. ......................
October, 1984, compared with September, 1934 ......... . ...... .. . .... . ...........
Stock turnover (rate):
Ratc of stock turnover in Ootober, 1933 .. . ........... '" .................... .. ..
Rate of stock turnovor in October, 1934 ......... . ......... .. .... . ...... . .. . .... .
Rate of stock turnover January 1 to October 31, 1933 ......... .. ..................
Rate of stock turnover January 1 to Ootober 31, 1934 ...... . ......... " .... . ......
Ratio of October collections to open accounts receivable outstanding Ootober I, 1934 .... .
Ratio of Oot. eollcotions to installmont aooounts reoeivahlc outstanding Oct. I, 1934 . .....
Indexes of department store sales:
Unndjusted-September, 1934 .. .... ............................ . ..............
Unndjusted-Ootober, 1934 ......... . .. ...... ... . ............ .. , .......... , .•..
Adjustod-8eptember, 1934 ... .. ........ ... .. . , ............................. ...
Adjusted-October, 19S4 .... .. ................................... . .. ..... , ....
Indexes of dcpartment store stooks:
Unadiusted-September, 1934 . . ... . ... ....... ... .... . .. " .. . . , ..... , ... .......
Unadiusted- October, 1934.. ........... . , .... ..... , .. . ........................
Adjusted-8eptember, 1934 .............. ... ........ . ....... ..... ..... , ........
Adjusted-Ootober, 1934 ................................ . ...... . ..............
Dallas
+12 .2
+ 7,8
+27.9
Fort Worth
+ .7
+ 1.3
+14 .0
Houston
+3.4
- 8.0
+23 .9
San Antonio
+17.0
0.0
+22.4
Othcrs
+ 4.5
+ .3
+18.8
Totnl Distrlot
+ 8.3
+1.4
+22.7
+14.3
+ 9.3
+27 .3
+
- .6
+14.3
+ 5.0
- 6.5
+26.3
+16.4
+ .3
+23.6
+ 5.7
+ 1.3
+17.5
+ 2.7
+ 6.4
+ 9.0
- 1.5
+ 7.8
+ 12 .0
+14.1
+ 7.9
+14.6
+ .2
+ 5.0
+ 4.6
.7
.25
.23
2.33
2.37
41.9
.27
.31
2.83
2.99
45.4
.22
.24
2,05
2.14
36 .7
24.0
+ 9.9
+22.3
+ 9.3
.30
,32
2.46
2.77
41.3
15.1
.22
.23
1. 94
2.09
35.6
15.4
.26
.28
2.32
2.51
40.4
15 .1
95.2
95.1
89.8
78.0
91. 7
86.0
94 .5
75.4
106.0
85.7
105.0
82.4
75.7
71.0
74.2
63.4
91.1
85.4
85.9
74 .3
55 .6
61.0
51.0
54.5
69.4
74,9
62.5
65.1
49 .2
57.0
44.3
49 .7
41.4
48.0
38.0
43.0
58,7
64 .4
53.4
57.0
MONTHLY BUSINESS REVIEW
While commercial failures increased
somewhat from September to October,
they continued to show a very favorable
comparison with the same month a year ago. According to the
report issued by Dun & Bradstreet, Incorporated, there were
Commercial
Failures
3
20 insolvencies in this district during October, as against
17 in the previous month and 40 in October, 1933. The
liabilities of defaulting firms totaled $189,152, as compared
with $173,049 in September, and $1,4,00,261 in the corresponding month last year.
AGRICUL TURE
Prospective yields of important crops on
November 1 in states attached to the
Eleventh Federal Reserve District, as reported by the United States Department of Agriculture,
~howed little change from those a month earlier. The low
yields for most crops emphasize the extremely unfa~orable
growing conditions during the current season, partIcularly
in the states of Texas, Oklahoma, and New Mexico. In
these states the per acre yields of most important crops are
sharply lower than those for 1933 or the ten-year average.
While the dry weather in October enabled farmers to make
rapid progress in the picking of cotton, it had an adve;se
effect on some late maturing crops and retarded the seedmg
of small grains. Rains during the first half of November
over a considerable portion of the district were very . beneficial, but the whole district needs heavy general rams to
lJrovide a subsoil season.
The principal development in the fe~d Cl:Op sit~ati.on in
the past month was a substantial reductIOn m the mdICated
production of grain sorghums in Texas. The forecast for the
State was placed at 21,140,000 bushels on November 1, as
compared with an indicated production of 33,824.,000 bushels
on October 1 and an actual harvest of 4.6,508,000 bushels
in 1933. A p~r acre yield of only 5 bushels was i~dicated
on November 1 which compares with 11 bushels m 1933
and 15 bushels 'for the ten-year average. The reduction in
the indicated production between October 1 and November
1 was due to the lack of rainfall, which prevented the expected improvement. There was practical!y no change durIng the month in the indicated productIon of other feed
?rops, but the yields reported earlier are sharply lower than
In the previous year.
. The forecasted production of cotton in this district ~as
lllcreased slightly during the past month. The productIOn,
as derived by the Federal Reserve Board from the .Novembel' 1 estimates by states of the Department of. Agnculture,
Was placed at 2,917,000 bales as compared WIth 2,865,0~0
bales on October 1. Most of the gain was accounted .for m
Texas, where good picking weather and the. matunng of
additional late bolls in North-Central Texas mcreased the
?utturn. According to the Department of Agricultu~e the
Indicated yield of 110 pounds per acre for Texas IS. the
lowest on record except in 1921 and 1918 when the YIelds
Were 101 and 109 pounds, respectively, pel: acre. The
h.arvested acreage this year of 10,390,000 acres IS the low~st
Slnce 1910. The Census Bureau reported that Texas gmCrop Conditions
TEXAS-PRODUCTION OF COTTON BY DISTlUCTS
(In thousands of 500-pound G. W. B.)
Distriot
N. W. High Plains . . . . ..... . . .• . . . . . . .
N. W. Rolling Plnins". " . .. .... . . . . . .
North Contral Plains . . . ... ...... · .. · ·
North Blnoklnnds ..... . . .. .. ....... . .
¥~~~~~:s.'.':::: :: :: :::: :: :::: :::::
Edwards Platonu ..... . •.... . . ·• · ·····
Southorn Prairies " ..... . . .. . .. ... . . . .
Coastal Plains ... . .. .... .. . ... · · · ,,· ·
South Texas .... .. ... . . . . . .. ... ... " .
Total State . ... .. " " " " " " . "
Foreonst
1984
88
274
60
744
416
58
40
446
126
129
2.300
Produotion
1088
463
064
148
1.211
580
53
71
637
102
120
4.428
5-ycnr avorago
1028-1032
423
759
110
1,347
770
60
103
643
204
162
4,580
nings amounted to 2,055,000 running bales prior to November 1, which represents 86 per cent of the forecasted production. The accompanying table shows the Department of
Agriculture's estimates of prospective Texas production
segregated by districts.
It will be noted that production in the Trans-Pecos and
South Texas areas is expected to exceed that of 1933, but
that production in all other areas reflects sharp declines
from a year ago. The largest declines occurred in the three
northwestern sections. The Oklahoma crop was reduced by
20,000 bales in October, and the indicated crop on November 1 of 350,000 bales compares with a production of
1,266,000 bales in 1933. The Louisiana crop was increased
10,000 bales.
The Texas rice crop was estimated at 7,728,000 bushels
on November 1 as compared with 7,590,000 bushels on
October 1 and an actual harvest of 7,473,000 bushels in
1933. There was a decline during October in the indicated
production of sweet potatoes in Texas and Oklahoma, but
there was an increase in Louisiana. The November 1 forecast for peanuts in Texas was placed at 52,000,000 pounds
as compared with 56,000,000 pounds on October 1 and a
harvest of 103,540,000 pounds last year. There was also
a decline in Oklahoma, but it was offset by an increase in
Louisiana. The forecasted production of oranges and grapefruit in Arizona and Texas on November 1 was substantially
higher than the small crop of 1933. Fall vegetables in
South Texas made favorable progress in October, but the
Department of Agriculture stated that it is too dry to plant
winter vegetables except where irrigation is available.
Livestock
The condition of livestock ranges in the
Eleventh Federal Reserve District declined during October and the situation continues very
critical in many sections. Over most of the Panhandle and
western sections of Texas, southern New Mexico, and localities in southeastern Arizona, ranges are very poor, livestock
are thin, and prospects for winter feed are serious. In much
of this territory there is little range grass, the outlook for
wheat pastures is not good, the supply of dry feed is limited
and in some areas there is a shortage of stock water. I~
the southern and Coastal areas of Texas, ranges are in
good condition and are furnishing some feed to other sections with some cattle being shipped in for pasture. In the
eastern half of Texas, the situation has been improved by
the rains during the first half of November and as there is
now sufficient moisture for the seeding of small grains, it is
likely that some pasturage from Lhat source will be available. As livestock generally will go into the winter in pOol'
condition, severe weather may cause heavy losses.
According to the Department of Agriculture, the condition of cattle ranges in Texas on November 1 was 50 per
cent of normal as compared with 54 per cent a month
earlier and 73 per cent a year ago. Sheep and goat ranges
were rated as 4.1 per cent of normal, which represents a
decline of 2 points during the month and 23 points from
the same date last year. Livestock have about held their
own. While the condition of cattle declined 1 point, that of
sheep remained unchanged and that of goats rose 5 points.
MONTHLY BUSINESS RE,VIEW
4
The condition of all classes of livestock on November 1
was sharply lower than on the same date in 1933. In New
Mexico ranges are the poorest on record with some water
shortage and no wheat pastures.
For the benefit of our readers who may
Government
be interested in the livestock situation,
Purchases
we are publishing below the government
purchases of cattle, calves, and sheep, up to and including
November 7, 1934, as reported by the United States Department of Agriculture. Figures for each state attached to
the Eleventh Federal Reserve District are shown separately.
The trend of the cattle market followed a downward
course during the past month. The bulk of the offerings,
however, were of the plain and common grades, which did
not furnish a real test of the market. Choice quality stock
generally met with a good demand. Hog prices declined
during most of October and at the low time were approximately a dollar lower than at the close of the previous
month, but most of the loss was regained during the first
half of November. Sheep and lamb prices ruled generally
steady.
GOVERNMENT PURCHASES OF LIVESTOCK UP TO AND INCLUDING
NOVEMBER 7, 1034 (Number)
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Cattle aud Calves
t~~r:~~.'.'.:::::::::::::::::::::::::::::::: :
October
1034
72,616
40,088
26,381
06,801
Sheep
~~:~~~
3,746
New Mexico. .. . .. . . . . . . .. .. . . . • . . . . . • . . . .• . .
435,045
. 246'666
,
Oklahoma . . . . . . . . . . . . .. .. . . . . . ... . . . . . . . . . . .
415,702
....... .
Texas.. . . . . . . . . . . . . .. .. .. . . . . ... . . .... . . .. . .
1,513,540
1,035,575
Total fNe states·.. . . . . .. . .. . . . .. . . . . ... . . .. . .
2,478,061
1,284,087
All other statce . . . .. . . . .. . . . . . . . . . . . . . . . . . . . . .
4,614,805
2,097,405
Total all states.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7,087,866
3,382,302
·States which lie partly or wholly within the Eleventh Federal Reserve District.
SOURCE: Department of Agriculture.
The October receipts of cattle, calves,
and hogs at the Fort Worth market reflected a further decline from the previous month. Due to the arrival of sheep purchased by the
Federal Government, the receipts of sheep showed a large
increase. The arrivals of all classes of livestock in October
were substantially above those in the corresponding month
last year.
C.ttle .. ........ .
Calves ... .. .. .. .
Hogs ..... .. . . .. .
Sheep .......... .
October
1033
38,047
34,588
10,000
43,607
Chouge over September Change over
year
month
1034
+33,660
83,975
-11,350
+15,400
52,646
- 2,650
31,670
0,481
- 5,208
+53,284
46,145
+50,746
+
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
Movements
and Prices
Beef steers .............................. .
Stocker steere . ......... ... .... . .. ....... .
Butcher eowe .... .. ........ .. . .......... .
Stooker oowe ........... ... . ..... ........ .
Cnlvce .............................. ... .
r~~~:':::::::::::::::::::::::::::::::::
October
1034
$7.25
4.50
3.50
2.25
4.60
6 .35
3 .25
6.00
October
1033
$5.00
4 .50
3.25
2.85
4 .25
5.35
2.50
6.25
September
1034
$6.75
4.15
3 .66
4:7i;
7.45
3.50
6.00
FINANCE
The past month witnessed an expansion
in the loans and deposits of member
banks in selected cities, but a decline in
their investments. Holdings of United
States Government securities totaled
$174,,982,000 on November 14, as compared with $179,221,000 on October 10, and $124,372,000 on November 15,
1933. While investments in other stocks and bonds declined
$627,000 during the five-week period, they were $5,494,,000
greater on November 14, than a year earlier. Loans on
securities declined $329,000 between October 10 and November 14" and on the latter date were $10,012,000 lower
than on the same date last year. "All other" loans reflected
a further expansion of $1,892,000 during the five-week
period. The net demand deposits of these banks totaled
$317,442,000 on November 14, which was $27,295,000
greater than five weeks earlier, and $69,807,000 above those
a year ago. Time deposits rose $1,136,000 between October
10 and November 15, and were $1,436,000 greater than on
November 15, 1933. The reserves of these banks with the
Federal Reserve Bank reflected an expansion of $3,459,000
during the five-week period_
Condition of
Member Banks
in Selected
Cities
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In thousands of dollors)
United States seeuritice OlVDed . ........... .
All other stocks, bonds, and sccuritice owned.
Loans on securities ...... . ............... .
All other loana ........... . ............. . .
Total loans ...... . ... . ... .. ... . ......... .
Net demand deposita .. .................. .
Time deposits .... .. .......... ........... .
Rceerve with Federal Reserve Bank ....... .
Bills payable and rediscounts with Federal
Reserve Bank .................. .... ... .
Nov. 14,
1934
$174,982
59,428
49,200
147,301
196,501
317,442
122,860
80,000
Nov.15,
1033
$124,372
53,034
50,212
157,970
217,182
247,635
121,424
51,788
Oct. 10,
1034
$170,221
60,055
40,520
145,400
104,938
200.147
121,724
76,631
None
200
None
The combined daily average of net demand and time deposits of member banks
in this district during October, which
amounted to $778,176,000, was $26,64.3,000 larger than in
the previous month, and $155,213,000 above that of October last year. While increases were shown in all classifications, most of the expansion over September occurred in net
demand deposits. It was only slightly greater in the case
of country banks than in the case of reserve city banks.
Deposits of
Member Banks
DAlLY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands ef dollars)
Combined Total
Oct.,
Nov.,
Dec.,
Jan.,
Feb.,
Mar.,
April,
May,
June,
July,
Aug.,
Sept.,
Oct.,
Net demand
deposits
lOSS ..... . $436.027
19S5...... 466,108
lOSS ...... 404,176
1934...... 505,000
1034 ...... 532,717
1034...... 535,355
1034... ... 523,307
1034.. .... 516,000
1034. ..... 510,465
1034.. .. . . 621,3SS
1034 .... .. 527,054
1034.. . .. . 567,318
1034 ..... . 583,558
Reserve City Banks
Time Net demand
deposits deposits
$186,030 S21O,087
187,047
228,205
186,687
240,071
102,214
249,001105,746
201,770
102,766
26a,201
192,548
257,838
102,830
253,752
102,712
256,456
107,600
255,210
106,825
260,061
104,215
275,831
194,618
287,250
Country Banks
Time Not demand Time
deposita deposits deposits
$100,264 $225,040
$77,672
106,914
237,033
81,033
106,132
253,205
80,555
108,317
256,818
88,897
110,348
270,047
85,308
108,385
~72,064
84,381
107,615
265,559
84,OS3
108,146
262,338
84,684
100,507
263,000
83,115
112,632
266,123
85,058
111,551
266,003
85,274
109,110
281,487
85,105
100,450
206,308
85,159
Member bank borrowings from the Federal Reserve Bank reflected a further
decline during the past month, the total
on November 15 being only $17,000 as
compared with $57,000 on October 15, and $1,027,000 on
the corresponding date last year. On the other hand, advances by the Federal Reserve Bank to established industrial
and commercial businesses for working capital purposes
showed a substantial expansion. The total of these advances
amounted to $576,000 on November 15 as compared with
Operations of
the Federal Reserve Bank
MONTHLY BUSINESS REVIEW
A seasonal increase of 9.6 per cent was
reflected in the volume of charges to
depositors' accounts during October at
banks located in leading centers in the
Eleventh District. Total debits to individual accounts at
these banks amounted to $627,184~000, as compared with
$572,122,000 in the previous month, and $558036000 in
October, 1933. With only two exceptions, all rep~rtin'g cities
participated in the gains which occurred.
Debits to
Individual
Accounts
$157,000 a month earlier. Investments of this bank in
United Slates securities remained unchanged on November
15 at $71,4.75,000. Holdings of bills purchased in the open
market declined from $159,000 on October 15 to $154.,000
on November 15, and the total on the latter date compares
with $378,000 on the same date last year. The reserve deposits of member banks with the Federal Reserve Bank
totaled $127,670,000 on November 15, as compared with
$124,,34.8,000 a month earlier, and $85,16,3,000 on the same
date in 1933. The actual circulation of Federal reserve
notes, which amounted to $54,,261,000 at the middle of
November, was only slightly lower than on October 15, but
Was $15,768,000 higher than a year ago.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
Abilene ........ .
Austin . . . . . .. .. .
Beaumont .. . . . ..
Corsicana . ... . ..
Dallas ..... .. ...
EI.Paso .. .. .. ...
Fort Worth . .. . ..
GalvC8ton .. . . ...
Houston ....... ..
Port Arthur ... . .
Roswell ... ... .. .
San Antonio .....
Shreveport .... . .
Texarkana· . .... .
Tueson .. ... .... .
Waco . ... . ... .. .
Wichita Falls . . ..
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
Nov. 15,
1934
Total oash reserves . . . ... ... . .. . . . . . . . ... . $120.364
17
Disoounta for member banks ... . .. . . ...... .
576
Industrial advances .. ..... . .... .. .... . .. . .
154
Bills bought in open markot .. . ... .••.... ..
71.475
United States securities owned . .. ..• .. .... .
441
Other investmenta ..... . .. . .. . ... .. ...... .
72,663
Total earning asseta .. .. ... .. ... ... .... .. .
Member bonk reservo doposita . .. . ... . .. .. . 127.670
54,261
Fodoral resorve notes in notual oiroulation .. .
Fodoral resorve bank notes in actual oireuNone
lation . ...... . ...... . . ..... . . . .. .. . .. . .
67.885
85.163
38.493
00t.15.
1934
$122.666
57
157
159
71.475
None
71.848
124.348
54.559
13.795
Nono
Nov.15,
1938
$85,491
k~~~
378
66,475
5
Ootober
1934
$ 7.274
29.993
16.858
3.021
183.144
22.618
63.171
20.727
147.037
5.702
2.678
52.289
38.927
5.875
7.053
13.953
10.964
Ootober
1938
$ 6.907
17.311
13.632
3.106
171.263
15.021
60.186
22.317
138.669
5.032
2.185
41.447
25.863
5.225
6.037
13.760
10.575
- -- ---
Pereentago
Percentage
ebange over September ohango over
year
1934
month
+ 5.8
S 5.265
+ 38.2
+73 .8
22.989
+ 30.5
+ 23.7
15.619
+ 7.9
- 2.7
3.167
- 4.6
+ 6.9
173.515
+ 5.5
+50 .6
17.332
+30 .5
+ 5.0
55.956
+12 .0
- 7.1
24.042
- 13 .8
+ 6.7
132.020
+11.3
+13.8
5.058
+12 .8
2.122
+22 .6
+26 .2
48.985
+ 6.7
:j:26 .2
33 .8
30.150
+12 .5
+12.4
5.281
+11 .2
+16 .8
5.949
+18 .6
13.572
+1.4
+ 2.8
10.205
+ 3.7
+ 7.4
---
$572.122
$558.036
+12 .4
Total ..... $627.184
+ 0.6
"Inoludes the figures of two banks in Texarkana. oUknnsas. looated In the Eighth
Dlstrlot.
Bankers' acceptances executed in this
district and outstanding at the close of
October increased seasonally over those
reported a month earlier, and while they continued in lower
volume than a year ago the margin of decrease was the
smallest shown in several months. The total amount outstanding was $1,639,4.75, as compared with $930,54.1 on
September 30, and $2,263,292 on October 31 a year ago.
Acceptance
Market
5
The savings deposits of 129 banks in the
Eleventh District increased further during October and at the close of the month
were 9.8 per cent larger than a year ago. The total reported
was $144,563,773, which compares with $142,954.,188 on
September 30, and $131,681,031 on October 31 last year.
With the exception of one city the increase over both comparative dates was general throughout the district.
Savings
Deposits
SAVINGS DEPOSITS
B
eaumont. . . .. .• .. . . . . ....
~f~as.. ....... .. ...... ...
aso . . .. ..... .. ....... .
Fort Worth........... .. ...
Galveston.. .... .... ..... ..
Houston ......... . .. .. .. .. .
Port A th
r ur.... . ..... .. ....
San Antonio .... ..... . . . ...
Shreveport.. .. .. .. . .. . .. ..
Waco ...... .. .. ..... .. ....
Wichita Falls........ ..... .
All others.. .. .. . .... .. .. ..
Number of
reporting
banks
3
0"
2
3
4
11"
2
6
3
3
3
80"
Ootober 31. 1933
Ootober 31. 1034
Number of
Amount of
Number of
Amount of
savings
savinJls
savings
savinJls
depositors
depollita
depositors
depOSits
8.047
$ 3.491.428
8.071
S 3.113.910
75.507
24.922.578
73.137
23.260.010
11.348
4.844.732
0.717
3.063.768
33.830
10.390.948
31.577
10.3S0.296
9803148
16516
9895610
16.818
.,
'803
27'574'614
64.128
20.020.634
64
2'623
1'870'008
4.046
2.003.130.
• •
20.415
15.506.243
17.603
13.261.107
20.800
10.511.144
21.301
9.706.632
6 233 307
10 502
5 608 220
10.758
••
'4 0
2'432'321
5.870
2.808.314
5h~2
20'654'545
64.207
24.740.163.
• •
Pereentago change
over yonr in
savings deposits
+12 .1
7.1
+22.2
+ 0.0
.6
+ 5.3
+ 7.1
+17.6
+ 8.3
+11.1
+19 .2
+19 .8
+
Total. .. ..... ...
120
327.278
$144.563.773
812.711
$13.1.681.031 .
"Only 8 banks in Dallas. 10 in Houston. and 73 in "All others" reported the number of savIDgs depOSitors.
+ 9.8
325,272
Rate charged oustomers onJrime eommeroial papor suoh as that noW eligible for
rediscount under the Feral Reservo Act ... .,' ... .. : . " .... .. . . ........ .....
Rate eharr,ed on loans to other bonks secured by bllisreeClvahle . ..... i( . . "" (" t' .
Rate on oans secured
prime stock exohange or other current co a~ora no
Including loans pia
in other markets through oorrcspondent banks).
Demand . . . .. . . .. .. . .. . ····· .. .. . . . . .. .. . .... . . ... . . . ..... .. . . .. .. .. .
o!r
Rotc eha~::le~~ o;,~~~iiiy 'p~pcr' ~';';~r'cd by ;,;~rclt~u·so·r'eeoipis'. ·c~·.:: : ::: :: : : ::: :
Rate on oattie loans . . .... .. . ... . . ....... " .. ... . ... . .. .. ... . .. . ... " . .. . . ....
EI Paso
2-0
5-6
6-8
5- 6
3*6
2~8
1',- 8
0
0-8
6-8
7- 8
6-8
Percentage change
ovor month in
savings depcsita
+1.5
$142,054.188
+1.2
+1.7
+1.0
- .5
+1.3
+1.2
+2.0
1.2
:j: 1.0
+
.2
+1.0
+1.1
Prevailing ralce:
NOVEMBER DISCOUNT RATES
Dallas
September 30. 1084
Amount of
Number of
savings
savinJ19
depOSits
depositors
8.060
$ 3.489.676
24.684.420
75.260
11.104
4.762.532
10.290.082
38.171
9.040.413
10.787
28.669.789
64.189
1.070.515
4.866
15.286.223
20.006
10.386.840
20.721
0.172.312
10.610
2.892.070
5.847
24.400.407
53.052
Houston
San Antonio
Waco
1~-7
5- 7
5-0
6-8
6
5~
5- 10
5- 10
5- 7
5- 7
3-7
7- 10
6-8
6-8
6-8
6-10
6-8
6-8
5-6
8
Fort Worth
2 .-6
1~-7
6-10
3- 0
MONTHLY BUSINESS REVIEW
6
INDUSTRY
The receipts and crushings of cottonseed
at oil mills in Texas reflected a contrary
to seasonal decline during October,
which may be accounted for in part by the reduced ginnings
this year as compared with last year. At all United States
mills, however, an increase in receipts and crushings of
seed somewhat smaller than the 1921-31 average was registered. The production of all products at United States mills
also evidenced an increase over the previous month. As
compared with the corresponding month of 1933 the receipts and crushings of seed at Texas mills, and crushings
together with the output of oil, cake and meal, and hulls
at United States mills reflected declines. For the first three
months of the current season all operations at Texas mills
were below those in the same period of 1933, while at all
domestic mills the production of linters was greater. The
October 31 stocks of cottonseed products, with the exception of linters, were seasonally larger than those a month
earlier at both Texas and United States mills, but they remained in substantially smaller volume than a year ago.
Cottonseed
Products
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Cottonseed received at mills
(tons) ...... . ......... .. . ..
Cottonseed crusbed (tons) . . .. .
Cottonseed on hand October 31
·(tons} ... . .. , . .. .. .........
Crude oil produced (pounds) ...
Cake and meal ~roduced (tons)
Hulls produced tons) . .'. ......
Linters produoed (running
bales} .. ........... ........
Stook. on band October 31:
Crude oil (pounds) ...........
Cake and meal (tons) .........
Hull. (tons) .. .......... . ....
Linters (running bales) .... ....
Tex!l8
United States
August 1 to October 31
August 1 to October 31
This senson L!l8t season This s"""on Last season
531,618
302,608
792,836
483,726
2,249,124
1,236,655
2,255,420
1,399,976
408,413
1,235,230
331,771
1,076,382
86,756,669 143,054,153 376,892,041 431,233,432
225,591
143,190
553,924
628,754
81,049
136,592
324,368
382,894
60,274
74,176
18,789,360
65,682
46,169
42,300
30,355,712
93,145
72,609
42,066
261,411
244,567
59,843,100 105,760,734
257,409
313,723
138,657
169,110
145,542
142,227
Following the termination of the domestic textile strike, the mill consumption of
raw cotton in the United States turned
sharply upward during October. Cotton consumption also
showed an appreciable increase over the corresponding
month of 1933. There were 520,310 bales of cotton consumed during the month, as compared with 295,960 bales
in September, and 504,055 bales in October a year ago. At
the close of the first quarter of the current season consumption aggregated 1,237,219 bales, which was 22.3 per cent
below that in the same period last season. Stocks of raw
cotton held by consuming establishments on October 31
reflected a further increase over those held a month earlier,
but remained in smaller volume than a year ago.
Textile
Milling
Activities at reporting cotton textile mills in Texas during October were considerably below those of the previous
Cotton-growing .tates:
Cotton consumed . ..........
On hand October 31 inConsuming establishments.
Public .torage and compresses .. . .. . .... . .....
United States:
Cotton oonsumed ...........
On hand October 31 inConsuming establi.hmcnts.
Public storage and comprcsses . ......... .. ....
Ootober
1933
410,543
405,175
989,706
1,271,314
892,785
504,055
Following the trend in other phases of
the cotton industry, the receipts and exports of this commodity through the
ports of Houston and Galveston during the past month,
while reflecting increases over the previous month, were
considerably smaller than the customary seasonal gain, and
were also in much smaller volume than in the corresponding month last year. The export movement of cotton during
the first quarter of the current season from these ports was
approximately one-half of what it was in the same period
last season. Stocks of cotton at both Houston and Galveston
on October 31 were seasonally larger than a month earlier,
but continued 'i n substantially smaller volume than a year
ago.
Although total foreign exports of domestic cotton from
all United States ports were larger in October than in the
previous month, they were smaller than in any corresponding month since 1920. There were 615,593 bales of cotton
exported during the month, as compared with 479,861 bales
in September, and 1,046,524, bales in October, 1933. ShipCOTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
Ueceipts .. . ..... . ............
Exports . ... .. . . .............
Stock., Ootober 31. ........•..
October
1034
229,880
162,787
........
October
1983
520,603
307,606
. .......
August 1 to October 31
This senson Last SC880n
873,007
457,774
506,128
363,774
801,876
605,362
,COTTON- GALVESTON STOCl{ STATEMENT
(Bales)
For Great Britain ... ... . .... ............ ....... .. ... .
For France ... ...... . .. . . . . .. .. ........... ... .. ... ...
For othcr foreign ports ........................ , ....• . .
For cO!l8twise ports ................................. ..
In comprcsses Ilnd depoul. .... . ... . ............ .. . .. ...
Total. ............. . .. .. ........ . ..... . .
00t. 31,
1034
1,500
3,000
19,000
500
581,362
Oct. 31,
1933
5,000
3,500
50,500
1,000
741,870
005,362
801,870
--
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
October
1934
310,309
105,702
. . ..... .
October
1933
567,642
360,714
. .......
Augu.t 1 to
'l'his .CasOIl
664,364
352,087
1,120,163
-
October 81
Last season .
1,220,004
861,429
1,513,620
-
August 1 to October 31
This se!l8on L!l8t season
1,091,572
9,145,272
520,310
Cotton
Movements
Receipts ..... . ..... .. .. . .. . ..
Exports ... . ..... . .... , .... . .
Stocks, October 31. . . . . . ... . . .
COTTON CONSUMED AND ON HAND
October
1934
month, which was contrary to the usual trend for that ~ea
son of the year, and they also reflected substantial dechnes
as compared with the corresponding month of 1933. Orders
for finished cotton goods on the books of reporting establishments on October 31 were in much smaller volume than
a month earlier or a year ago, while stocks of finished products were slightly larger than those held on September 30,
but smaller than the holdings on October 31, 1933.
9,124,234
1,237,219
1,592,439
1,139,721
1,363,343
9,881,428
9,474,446
SPOT COTTON PRICES-(Middling Basi.}
(Cents per pound)
New york ..........•.....• . .......... . ..
Now Orleans ...... .. ...... ........... , ...
Dall!l8 .......... ... . . .. .. . ... ...........
Hou.ton .................................
Galveston . ..............................
October, 1934
High
Low
12 .65
12 .25
12.75
12.37
12.30
11.85
12.70
12.25
12.70
12.30
-
Nov. 15,
1934
12.55
12 .61
12. 15
12.00
12.05
-
MONTHLY BUSINESS REVIEW
Inents during the current season, August through October ,
~ggregated only. 1,363,~16 bal.es, which compares with
",,446,395 bales In the hke penod last season. Accordin g
to the Departm~nt of Agric~lture, the reduced foreign de
man~ for Amencan cotton IS largely due to the short do mestlC crop and the relatively high prices for American
cott~n, the large increase in carryover and production of
fO.reIg.n grown cotton, and the curtailed activity of textile
Inills In many Continental European countries.
OIL PRODUCTION-(Barrels)
3,667,260
~orth Toxas . ................
Eontral West Toxas .. . .... . .. 6,225,060
8,;'st Texas ..... .. .... . . . .... 13,860,800
uth Toxas ............ . .... 1,796,460
Texas Coastal. .... . ..... .... . 5,169,250
954,800
45,850
28,800
---
---
Total District ... .. . .. 31,757,950
1,024,450
- 8,600
-14,500
-28,900
+ 100
- 11,050
--- 57,850
- 300
- -200
--- - -726,050
-58,350
-780,700
+ 36,850
+ 17,800
OCTOBER DRILLING RESULTS
3,5Q2,150
419,950
85,750
+ 9,750
-266,460
-420,200
+ 60,950
- 164,750
--- ---
---
Complotions
~~#~~:.. . ~fil gfm
Total roreiA~, o~I;Qr countries.... . . .. .. .. .. .. . .. ... .. .. .
Stocks
114,760
168,560
446,800
67,950
166,750
Total Texas . . .... .. . 29,598,800
Now Mexico .... ............ . 1,421,350
737,800
North Louisiana ..............
August 1 to October 81
This season Lnst season
2,237,695
I xpor16: United Kingdom. ............ . ... .. ...... . ..
167,264
Increase or dccreaso ovor
Soptember, 1934
Total
Daily Avg.
Ootobor, 1984
Daily Avg.
Total
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORTS-(Bales)
~Qoeipts ...... . . . . . . .. .. . . . . . . . . . . . . .. .. . . .... . . . ....
'I
125,880
hol~ otoll16U~iicXi 'St~~ 'p~ri~: O~~bC~':ij :: : ::::: ~:~~:~~~ ~:~~~:m
Total Toxas .. . .. . .
Now Moxico . . . ........... .
North Louisiana ...... ... .. .
Petroleum
A general decline was reflected in the
daily average output of crude oil in the
E1~venth Federal Reserve District during October, and deSpIte the longer month total production was reduced to 31,757,000 barrels as compared with 32,4.84,,000 barrels in
September. In October last year the amount reported was
3.3,250,600 barrels. Field activity showed a material expan~lon,. there being 961 wells completed in October as against
~5 In the preceding month. Of these, 701 were producers
WIth ~ combined initial yield of 2,576,082 barrels, as compared with 526 successful wells in September, their flush
production amounting to 1,900,830 barrels.
Texas fields, particularly those located in the eastern,
~entral-western, and Coastal areas of the State, accounted
or most of the reduction in daily output from September to
~ctober. Texas production averaged 954,,800 barrels during
~ e latter month, which compares with 1,012,650 barrels in
eptember, and 1,004,700 barrels in the same month last
year. The daily yield in New Mexico and North Louisiana
bn:ounted to 4,5,850 barrels and 23,800 barrels, respectively,
emg only slightly smaller than in the previous month.
Ootober totals, district ......
Soptember totals, district ....
Gas
wolls
FaUures
Initial
production
201
101
394
124
92
113
75
361
83
51
2
1
3
10
4
86
25
30
31
37
31,366
107,540
2,361,072
21,541
22,693
11
38
11
7
is
18
765
North Toxas .... .. .... . ....
Central West Texas .. .......
Enst Toxas ............ ....
South Texas ..... .. ........
Texas Coastal. .............
Produoors
526
-912 -683 -20- - - 2,544,212
--209
- 33
-961 -701 - - -227
205
34 •
81,425
446
---
2,576,082
1,900,830
CRUDE OIL PRICES
Nov.O,
r
Texas Coastal (84 gr. and above) .......................
North Toxas (40 and above) . ... ..... . •..•
North Louisiana 40 gr. and above) .... .. .... :.:::::::::
Nov. 10,
1034
$1.12
1.03
1.08
1083
$1.12
1.03
1.03
(Od stat.. tles eompiled by "The 0,1 Weekly " , Houston, 'rexas)
Total building permits issued in October
at fourteen leading cities in this district
amounted to $1,790,818, being 51.9 per cent greater than
the volume reported in the previous month, and more than
t:w~ce as ~arge as .that in October, 1933. Nine cities part~Clpated In th~ gal~ ?ver September, and with one exceptIOn all reportmg cIttes showed substantial increases over
a year ago. Construction permits issued during the first ten
months of the current year exceeded those of the same
period in 1933 by 7.9 per cent.
Building
BUILDING PERMITS
Octobor, 1034
No.
~marillo ...
....
Bustin . . ...... .
CODumont .... . .
D~tr.us Christi ..
EI pas .. ..... . .
F aso ....... .
oort Worth . ....
Ralvcston . . ....
P ouston .. . . . ...
sort Arthur ....
Antonio . ...
Wreveport .. . ..
Shn
Wro'hlta 'F~li,j :::
.
Valuation
October, 1088
No.
- - - - - -12
42 S 130,444
128
107
43
400
54
134
187
150
64
230
148
20
46
113,471
34,050
20,211
217,741
22,222
113,300
33,002
715,625
75,723
211,733
49,012
28,234
15,541
75
119
30
332
32
108
122
102
47
166
120
15
30
- - - - - --
Totnl. ... ..
1,761 $1,790,818 1,400.
Inorease ovor ono thousand por oent .
Percentago ohonge
valuation ovcr
yoar
Valuation
-
S 11,442
-
33,074
28,320
11,215
152,560
16,809
74,400
45,141
240,357
13,273
77,174
32,654
19,092
7,345
$ 768,828
.
+243 .1
+ 20.2
+ 80.2
+ 42.7
+ 40 .0
+ 52.3
- 25.0
+100.5
+470.5
+174.4
+ 52.0
+ 41.2
+111.6
-
+132.0
Percentago change
valuation ovcr
month
Valuation
No.
-
28 $ 28,160
58,886
100
14,142
06
71,717
3a
146,078
389
23,411
44
85,700
134
56,642
170
319,705
170
11,015
51
58,340
153
273,627
177
14,513
15
17,241
82
-- 1,618 $1,178,867
The production of Portland cement ~t
Texas mills totaled 164,~00 barrel~ 111
I etoher, as compared with 324,,000 barrels m the prevIOUS
nont~, and 113,000 barrels in the same month last year.
espIte the reduction in output from the September level
Cement
o
Janunry 1 through Ootober 31
September, 1934
+305 .2
92.7
+140.8
- 71.8
+ 50.1
5.1
+ 32.2
- 40 . 7
+123 .8
+551.0
+262.0
- 81.8
+ 04.5
- 0.0
-
-
+ 51.0
1033
1034
No.
Valuation
207 $ 373,375
707,040
845
282,803
012
313,383
272
1,970,102
3,784
223,479
425
764,687
003
457,040
1,309
4,232,626
1,830
185,418
473
784,241
1,468
080,723
1,684
260,410
182
230,400
658
Valuation
168 S 149,147
No.
852
849
250
3,336
357
867
056
1,804
472
1,300
1,073
228
280 ·
14,041 $11,855,532 12,845
1,228,925
172,281
143,091
1,722,125
160,3SS
2,577,807
• 367,606
2,776,217
01,008
870,440
380,667
273,201
74,821
$lO.OB8,60S
Percentage change
valuation ovor
period
+160.3
- 85.1
+ 04 .2
:):117.6
14 .4
+ 39.3
-70.7
+ 27.8
+ 52.5
+101.6
0.0
+151.7
1.4
+207.0
- -7.0
+
the volume of shipments during the month rose 18.8 per
cent, and amounted to 297,000 barrels as against 205,000
barrels in October, 1933. Stocks on hand at these mills on
~he last day of the month aggregated 545,000 barrels, being
materially smaller than either a month earlier or a year ago.
8
MONTHLY BUSINESS REVIEW
PRODUCTION, SHIPMENTS, AND STOOKS OF PORTLAND CEMENT
(In thousands of barrels)
Oot,
1934
Produotion at Texas mills ...... ....... . .. ..... . .... .. . ....... .. ... .. ...... .... . .. .... ... . . .... . . . . ............... .. .. . 164
297
646
~r~k!e~t~!do::r i:~ :!'l~e~.;s ·miIi8:::::::: : :: ::::: ::::: : i::::: ::::::: ::::::: :::::::::::::: ::::::::::::: ::::::::::::::
Peroentage
ehange from
Oet.,
Sept",
19S3
1934
+46.1 -49 .4
+44 . 9 +18.8
-23.8 - 19.6
January 1
through
Oot.31,
19S4
3,012
3,021
Peroentage
ehange over
yenr
+12 .0
+14.0
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the F ederal Reserve Board, November 24, 1984)
Volume of industrial production and factory employment, which usually shows little change at this season, increased in October, reflecting chiefly the resumption of
activity' at textile mills. Wholesale commodity p~'ices, after
declining in September and October, advanced m the first
half of November.
PRODUCTION AND EMPLOYMENT
Activity at industrial establishments, as measured by the
Board's seasonally adjusted index, showed an increase from
71 per cent of the 1923·1925 av~rage i~ Septemb~r to 73
per cent in October. Among the md~stn~s producmg duro
able manufactures, output at steel mIlls mcreased from 23
per cent of capacity for the month of September to 25 per
cent for October, while output of automobiles and lumber
declined. In November, activity at steel mills continued to
increase and in the ''leek ending November 24, was at about
28 per cent of capacity. Automobile production has de·
clined further in connection with the preparation of new
models. The production of non-durable manufactures in
the aggregate showed a considerable growth in . Octo~er,
leflecting sharp increases at cotton, woolen, and SIlk mIlls,
offset in part by a decline in activity at meat packing
establishments. The increase in output at textile mills after
the strike in September brought output to a higher level
than in August. Among the minerals, daily output of crude
petroleum declined in October and that of anthracite increased by an amount smaller than is usual at this season.
Factory employment and payrolls in the country as a whole
increased considerably between the middle of September
and the middle of October. Sharp increases were r eported
at mills producing textile fabrics, while in the automobile,
shoe, and canning industries there were declines of a seasonal nature. The value of construction contracts awarded
was somewhat larger in October than in any other recent
month. There was an increase in residential work as well
as in publicly·financed projects. Department of Agriculture
estimates, based on November 1 conditions, indicate a cotton
crop of 9,634,000 bales, 26 per cent smaller than the 1933
crop, and a corn crop of 1,372,000,000 bushels, 4.1 per cent
smaller than last season and 4,5 per cent smaller than the
1927·1931 average. The tobacco crop is also considerably
smaller than usual, while the white potato crop is slightly
above the five·year average.
DISTRIBUTION
The number of freight cars loaded per working day
decreased from September to October. Department store
sales showed a seasonal increase and were at about the same
level, on a seasonally adjusted basis, as in most ot?er
months since March. Rural sales of general merchandIse,
as reported by the Department of Commerce, increased by
less than the usual seasonal amount following an unusually
large increase in September.
COMMODITY PRICES
Wholesale commodity prices, as measured by the Bureau
of Labor Statistics' weekly index, declined from 77.8 per
cent of the 1926 average in the week ending September 8 to
76.0 per cent in the week ending November 3 and then rose
in the following two weeks to 76.7 per cent. The decline
was largely in prices of farm products and foods but there
were also some decreases in the prices of textiles and build·
ing materials. Increases in the first half of November were
largely in the prices of farm products. The price of scrap
steel also advanced, while lead and zinc declined.
BANK CREDIT
Excess reserves of member banks were about $1,910,
000,000 on November 21, showing an increase of $150,000,000 in the preceding five weeks. The increase in reserves
held was $200,000,000, of which $50,000,000 covered a
growth in required reserves. Additions to reserves resulted
mainly from gold imports and further issues of silver cer·
Lificates. Loans and investments of reporting member banks
in leading cities declined somewhat in the four weeks ending
November l4o, following an increase in the previous month.
Substantial declines were shown in loans on securities and
in holdings of securities other than those of the United States
Government. Other loans, which 'had increased considerably in previous months, also showed some decline, while
holdings of direct obligations of the United States Government and of securities fully guaranteed by the Government increased considerably. Customers' deposits continued
to increase, while government deposits declined. There was
a further decline in open-market rates on bankers' acceptances at the end of October to an offering rate of Va per
cent. Yields on short-term Government securities and other
short-term open-market money rates showed little change.
@FedFRASER