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MONTHLY BUSINESS REVIEW
OF THE

FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
Assistant Federa l Reserve Agents

C. C . WALSH
Chairman and Federa l Reserve Agent

(Compiled November 15, 1935)

-

~=====================================================
This copy is released for pub- Nov. 30
Volume 20, No. 10
Dallas, Texas, December 1, 1935
licntion in morning pnpers-

=-

-

DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Fodernl Rcacrve District

-

Change rrom
September

Ootober

-

1935

Bank debits to individual nceounts (at 18
Doili ..) ... . .. .... ..... . . .......... ..... . ..
n epartment store sales . ... ..... .... . ....... .
..erve bank loans to momber bnnks at end
nor menth . .. . . ... ... ... .. . .... .......... .
B..crve bnnk ratio nt end or month .... . .. . ..
Cuilding permit vnluntion nt Inrgcr centers . . . .
Commerolal rnilures wumber) .. . . ........... .
01mmereinl rnilures liabilities) .. . . . . . .......
'- produclion (barre s) . ... . . . ..............

1726.976,000

.. ..... ....

+ 18 . 5~
+ 2.4

94,801
62 .5%
$ 3,758,078
13
151,809
$
34,507,000

- $545,440
1.1 points
55 .0%
1
- 22 .3%
2 .9%

$

0

+
+

-

+

Developments in business and industry in the Eleventh
Federal Reserve District during the past month were gene:~lly favorable. The sales of department stores in princival
CIties were 2 per cent larger than in September and 8 per
bent above the corresponding month last year. The increase
etween September and October was less than usual due
largely to the unseasonable weather prevailing during Octo~r and the heavy buying in the two preceding months.
Distribution of merchandise in wholesale channels reflected
a noticeable expansion over the previous month, and the
~olume of business was substantially larger than a year ago.
.ollections at both wholesale and retail evidenced a con~ld~rable improvement during the past month. Debits to
ln7dlVidual accounts at banks in principal cities rose to
S 26,976,000 in October, which was 19 per cent larger than
.
In September, and 14 per cent above those in October last
Year.

f lronstruction activity reflected a sharp increase in October
.° Owing the September recession. The valuation of buildIng permits issued at principal cities was 55 per cent larger

than in the previous month and exceeded the total in October last year by 110 per cent. The aggregate for the first ten
months of the current year was 124 per cent above that in
the same period of 1934.
The agricultural and livestock industries continued in
good condition. The November 1 report of the Department
of Agriculture made few changes in the estimated production of crops in this district, and it is now evident that production of most crops will greatly exceed that in 1934,.
Farmers made good progress with harvesting operations
during the first three weeks of October, but progress was
slow in the subsequent three weeks due to the frequent and
widespread rains. The added moisture, however, has been
very beneficial to late maturing crops, small grains, and
pastures. The condition of livestock and their ranges is considerably above the average for this season. Livestock are expected to go into the winter in good shape, and in view
of the abundance of feed they should winter well. Commercial reports indicate that range livestock markets have
slowed down recently but that wool and mohair continued
in brisk demand at firm prices.
The commercial loans of member banks in selected cities
reflected a substantial expansion in the five-week period
ending November 13, and on that date were larger than a
year earlier. Federal Reserve Bank loans to member banks
amounted to only $50,000 on November 15, as compared
with $465,000 a month earlier, and $17,000 a year ago. The
daily average of combined net demand and time deposits
of member banks rose from $761,937,000 in September to
$775,552,000 in October. Federal reserve notes in actual
circulation amounted to $70,320,000 on November 15, as
compared with $66,760,000 on October 15, and $54,261,000
on November 15, 1934,.

BUSINESS
TPholesale
A good showing was made during OctoTrade
ber in the distribution of practically all
t
types of merchandise through wholesale
hl'ade channels in this district. All reporting lines except
w
a~dware showed comparisons with the previous month
thhlch were better than is usual at this season, and in
e case of every line there was an expansion over a year

ago. These increases ranged from 5.6 per cent in the case of
dry goods to 38.2 per cent in the case of farm implements.
The favorable comparisons reported were attributable in
some measure to the fact that business was retarded earlier
in the season by the slow cotton movement. Collections
turned noticeably upward in October, as is usual at this
time of year, and the gains over the preceding month ranged

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

-==-

----------~~~~~mlli------~-~2____________________~M~O~N~T~H~L~Y~B~U~S~IN~E~S~S~R~E~V~I~E~W~________________
from 6.8 per cent in the case of drugs to 55.6 per cent in
the case of farm implements.
While varying conditions prevailed in different sections
of the district during October, the demand for dry goods
at wholesale was generally well susta~ned. A less. than
seasonal decline of 3.6 per cent was regIstered, and m the
comparison with the corresponding month l~st ye~r an increase was again reported after two months m whIch s~les
were smaller than a year ago. A large seasonal expanSIon
occurred in the volume of collections during October.
There was a further seasonal increase of 6.7 per cent
in the distribution of hardware at wholesale during October.
This is the sixth consecutive month in which an improvement has been shown. Total sales recorded a gain of 15.1
per cent over the same month a year ago, and for the period
from July 1 to Qctober 31, inclusive, the expansion over
last year amounted to 21.2 per cent. As compared with the
previous month, Qctober collections reflected an increase of
22.4 per cent.
Having fallen off in the previous month, the business of
reporting wholesale drug firms during Qctober showed an
increase of 12.4 per cent over September. This gain was
caused chiefly by influences other than seasonal, as there
is ordinarily but little change in the amount of activity
reported in these two months. As compared with Qctober,
1934" there was an expansion of 14.3 per cent. Collections
were seasonally larger than in the preceding month.
Sales of groceries at wholesale rose appreciably in Qctobel', showing a greater than seasonal gain of U.3 per cent
over the preceding month and a like expansion as compared
with the same month last year. Stocks on hand increased 9.7
per cent during the month, but on Qctober 31 were 2.6 per
cent less than a year ago. Collections during the month were
in 21.4 per cent larger volume than those of September.
A better than seasonal improvement was registered in the
demand for farm implements at wholesale during Qctober,
the volume of sales being 54.8 per cent higher than in the
previous month and 38.2 per cent greater than a year ago.
Business in most sections of the district benefited from
favorable crop conditions. A large gain in collections was
reported.

CONDITION OF WHOLESALE TRADE DURING OCTOBER, 1935
Percentnge of increase or decrease inS1
Stocks
natio of collecNet Sales
Net adcs
0 t 1935 tions during Oct.
Oct., 1935
.J uly 1 to ".to
c .,
. h t aocounts and
comparod with compared :-v~h 00mrare~~~t n~tes outstanding
0
Oot., Sept., some perlO
1934" IJ35'
on Sept. 30
1934
1935
1ll8t yenr
87 0
Grocones . . . . .+113 . . . 3
+11
+ 2 '4
0
- 13 ' 6 -9.8
2 9 +9 .7
·
...
-3
38 .
.1
Drygoods ........ + 5.6 - 3.6
.
+54'3 - 11
12 .9
Farmimploments .. +38. 2 +54 .8
+~~ . ~
+ 4 '8 - : 5
46 .0
Hardw.re ...... .. +15 .1 + ~ . 7
+17'4
+11 '3 +4.1
55 .7
Druga .. .......... +14 .3 +1 .4
.
.

. b . ess
Although the rate of increase. m ~s~ a1
of department stores loc~ted. m pnn
a
cities of the Eleventh Dlstnct showe t
noticeable slowing down in Qctober, the unfavorable dSP£~r
of this trend is minimized when allowances are rna e f ct
the unseasonable weather during the month and for tht ;er
that business in both August and September reflected d~;ing
than seasonal increases. Total dollar volume of sales d 82
October was 2.4 per cent greater than in September, .an ~e
per cent above that in Qctober, 1934. The latter m~r~iar
compares with a gain of 7 per cent recorded for a SImI I
comparison in September. As a result of the small seasona _
!'lea
increase in business during the past month th' badk'sr' ed
IS
son ally adjusted index of department stor~ sales e~:; to
.from 91.7 per cent of the 1923-25 average l~ Sept~mdex of
79.9 per cent in Qctober, which compares WIth an l:ronth
S
74.3 per cent in October, 1934. During the first ten
ter
of 1935 distribution of merchandise was 6.3 per cent grea
than in the corresponding period of 1934.
The dollar volume of stocks of merchandise hel d bY rent
porting firms on Qctober 31 was seasonally 8.1 per t~an
greater than a month earlier, and 2.9 per cent larger ver
on the same date last year. The rate of stock turno red
during the first ten months of 1935 was 2.56, as compa
with 2.47 in the like period of 1934.
·
Seasonal increases were reflecte d dunng 0' cto b er in the
tio
collections of both open and installment accounts. Tk e ra oJ'l
of Qctober collections to open accounts outs tan mg in
Qctober 1 was 40.5 per cent, as against 35.4, per ce~~onS
September, and 4,0.4 per cent in Qctober, 1934-. Collec ~ ill
on installment accounts increased from 13.9 per cen
September to 15.0 per cent in Qctober.

Retail
Trade

J'

BUSINESS OF DEPARTMENT STORES
Total salcs (peroentage):
Ootober, 1935, compared with Ootober, 1934 ..... . .............. .. .. .... .... . . .. .
Ootober, 1935, compared with September, 1935 .... .. ..... ... '" .. . " " .......... .
January 1 to date oompared with same peried Inst yenr ...... . . .. " . .. . . •.. . .. ... •
Credit sales (percentage):
October, 1935, compared with October, 1934. ... . . .. .......... .
Ootober, 1985, oompared with September. 1935 ... . .... . ..... ... ••.. . . ....• ....
January 1 to date compared with same peried lnat year ..... : . : ::: :: :: : : : : : ::::: ::
Stooks on hand at cad of montb (percentage):
October, 1935, compared witli October, 1034.. . .. ..... . .. ... .... .............. . ..
Ootober, 1935, oompared with September, 1935 ...... "" ........ . . "'" ....... .. .
Stock turnover (rate):
Rate of stook turnover in October, 1934 .. ....................... . ....... . ...... .
Rate of AtOO.! turnover in October, 1935 .. . ................. " " .. . ............. .
Rate of stook turnover January 1 to October 31, 1934.. ... .... ............ . ...... .
Rate of stock turnover January 1 to Ootober 31, 1935 ...... .. "" ................ .
Ratio of Ootober oollections to open accounts receivable outatanding Ootcher I, 1935 . ... .
Ratio of Oot. rolleotioll8 to instnllment aecounta receivable outstanding Oot. I, 1935 . ... . .
Indexes of department store sales:
Unadjusted-80ptomber, 1935 . . . . .. .. ...... . . . ....... . .......... ..... ........ .
Unadjusted-October, 1935 .. . ..... .. .. .... . . .. . . '" .. .. . . . .
Adjustcd-80ptember, 1935 .. ....... .. . . ••..... . . . ••.. .. : . . : .. :: : :: :: : ::::::: ::
Adjusted-Ootober, 1935 ... .... . ....... . ........................... . ......... .
Indexes of deportment store stocks:
Unadjusted-80ptember 1935 ............ . ......... . . .... ......... . . ....... . ..
Unadjusted-Ootober 1935 .................................... . ............. . .
Adjusted-80ptember 1935 ... .. ...•................•......................•...
Adjusted-October, 1935 ........ .. . .... ...... ........ .... .. ............ "'" .

-

Dallna
+10.4
8.2
+10 .1

Fort Worth
+12.8
+ 4.2
5.3

Houston
+ 4.0
- 5.9
+ .3

San Antonio
+ 6.0
- 4.7
+ 7.7

Others
+ 6.7
+ 4.0
+ 4.9

+13.7
+ 6.0
+14.3

+18.4
1.8
+10.1

+

+12 .5
- 6.7
+ 6.8

+ 8.2
- 9.0

+11.1

+11.6
+ 1.3
+ 8.4

+13 .0
+ .3
+11.1

+ 1.3

- 6.5
+ 9.8

+ 8.5
+10 .3

+

+ 2.9
+ 8.1

+

+7.1

+ 7.8

+

+ 7.9

.2
6.6

Total
+
+
+

District
82
2.4
6.3

.27
.29
2.47
2.56
40 .5
15 .0

.32
.34
2.77
, 2.95
40.9
16 .1

.23
.25
2.08
2.15
34 .6
9.3

.23
.25
2.37
2.35
42 .6

.31
.30
2.99
2.88
44.6
18.8

104.6
105 .0
98.7
86 .1

98.0
95 .5
101.0
83 .8

106.2
88.4
105 1
85 .0

83.1
73 .6
81.5
65.7

97 .2
91.9
91.7
79.9

60.4
64 .7
55 .4
57.8

70 .3
75 .9
63.3
66 .0

45.1
50.1
40 .6
43.2

47 .2
52 .5
48 .3
46.5

61.6
66.5
56.0
58.8

.23
.24
2.05
2.15
39.0
19 .8

MONTHLY BUSINESS REVIEW
Commercial
Failures

The past month witnessed a further decline in the number of commercial failures and in the amount of indebtedness
involved. According to the report of Dun & Bradstreet,
Incorporated, there were 13 failures in the Eleventh Fed-

3

eral Reserve District with liabilities of $151,809, as compared with 14 insolvencies in September, involving an indebtedness of $195,4,26, and 20 defaults in October last
year owing $189,152.

AGRICULTURE
Crop Conditions

Growing conditions in most sections of
this district continued generally favorable during October. Heavy rains have
fallen in all sections, except a few counties in the northwestern Panhandle of Texas and portions of eastern New
MeXico, and outside of these areas a good surface and
subsoil season obtains. The wet weather, however, interfered with the harvesting of crops, the seeding of small
grains, and fall plowing operations.
, The cotton crop in this district suffered further deterioralion during the past month. While the Department of
tgriculture reduced the estimated production in Texas,
ouisiana, and Oklahoma, the largest decline occurred in
the latter state. The production for the district, as compiled
£Y the Board of Governors of the Federal Reserve System
rom the November 1 estimates, by states, of the DepartIllent of Agriculture, was placed at 3,812,000 bales, as
compared with 3,963,000 bales on October 1, and an actual
~arvest of 2,934,,000 bales in 1934,. The November 1 condition of the Texas crop indicated a production of 3,250,000
bales, which is 25,000 bales lower than the previous forecast
and compares with 2,4,06,000 bales produced in 1934·. Most
of the increase in production over last year occurred in
northwest Texas, while in south and southwest Texas the
crop is considerably shorter. Due to the lateness of the crop
a~d . unfavorable weather for harvesting, picking and
gInnIng have proceeded slowly throughout the fall. The
Bureau of the Census reports the Texas ginnings, in running
bales, prior to November 1 at 1,904,,000 bales, which represents 61.5 per cent of the estimated production. During the
s~me period last year 88.8 per cent of the crop had been
~12nned. The November 1 forecast for Oklahoma was for
5,000 bales, or a reduction of 125,000 bales from the
~ctober 1 estimate. The Louisiana crop was reduced 25,000
ales from the previous forecast.
The Department of Agriculture in its November 1 report
~educed somewhat the estimated production of feed crops
In Texas. The corn crop was estimated at 108,471,000
bUShels, as compared with a forecast of 111,326,000 bushels
on October 1, and a harvest of 4,5,873,000 bushels a year
go . The continued dry weather in portions of the Panandle further reduced the prospective production of grain
S~rghums . The November 1 estimate indicates a production
o 64,,536,000 bushels, as compared with the previous esti~ate of 75,292,000 bushels, and an actual harvest of 17,8,000 bushels a year ago. The grain sorghum crop was
~lso reduced in Oklahoma and New Mexico. The corn crop
In Louisiana, however, showed some improvement.

h

hThe prospective production
peanuts was reduced
1at from theonearlier forecast1ofindicatedand Louisiana.somein Texas
The
1eXas crop
November
a production of
12,100,000 pounds as compared with 117,800,000 pounds
n ~ctober 1, and 51,350,000 pounds produced in 1934,.
frh e lndicated production of sweet potatoes was increased
on1 5,893,000 bushels on October 1 to 6,390,000 bushels
on November 1, and the latter figure compares with a

t

harvest of 3,300,000 bushels in 1934. The per acre yield
this year is estimated at 90 bushels as compared with 50
bushels a year ago. The estimated production of pecans
was increased substantially. The Texas crop is now placed
at 44,000,000 pounds and the Oklahoma crop at 25,000,000
pounds, which represents an increase of 7,000,000 pounds
during the month for the two states. In 1934, the combined
production of these two states totaled only 23,250,000
pounds. The indicated production of other crops was
mostly unchanged from the previous forecast.
Ranges and livestock in the Eleventh Federal Reserve District remained in good
condition during the past month, which is in direct contrast
to the extremely low condition obtaining at this time a
year ago. Rainfall has been adequate in all sections except
in the northern part of the Texas Panhandle and in portions
of eastern New Mexico. The Department of Agriculture
states that outside of the above areas and a few other scattered localities where a shortage of grass and feed is
reported, range and feed conditions appear to be ideal.
There is an adequate supply of stock water in all sections.
Livestock are expected to go into the winter in much better
than average condition, and should winter well with a minimum loss barring an unusually severe winter. The Department reports that there is a tendency to hold young cattle
to restock where cattle were sold close in 1934, and that
there has been a very active demand for breeding ewes.
Livestock

The condition of cattle ranges in Texas was rated at 87
per cent of normal on November 1 as compared with 88
per cent on October 1, and 50 per cent a year ago. Sheep
and goat ranges were reported at 92 per cent of normal
condition on November 1 as compared with 94 per cent a
month earlier, and 41 per cent on the same date last year.
The condition of cattle and sheep rose 1 point in October,
and the November 1 figures were 27 and 31 points, respectively, higher than a year ago. The condition of goats
remained unchanged during October, but the 91 per cent
rating on November 1 compared with 65 per cent on the
same date in 1934,.
Receipts of cattle at the Fort Worth
market in October were lower than in the
previous month, but somewhat larger
than a year ago. While the arrivals of calves increased substantially between September and October, they were below
those in the same month of 1934,. Hog receipts were smaller
than in either comparative month. Although the number of
sheep yarded reflected a noticeable increase over the previous month, a large decrease from October last year was
registered.

Movements
and Prices

The cattle market during the past month was generally
slow with a tendency toward lower prices. However, prices
strengthened somewhat around the middle of November.
Hog prices suffered a considerable loss dW'ing October, and
in the first week of November the best offerings fell under
the $9.00 level. The market showed some recovery during

MONTHLY BUSINESS REVIEW

4

the succeeding week. Supplies of sheep and lambs were
light for this season and there was a general advance in
prices for all classes.
FORT WORTH LIVESTOCK RECEIPTS
(Number)

Cattle...........
Calves ...... . ...
liogs ..... .... ...
Sheep ...........

Ootober
1935
77,741
48,618
18,087
50,136

Ootober
1934
73,376
50,971
26,588
98,027

Change over September Change over
yenr
1935
menth
- 1,044
+ 4,365
78,785
- 2,353
36,951
+ 11,667
- 8,501
19,798
- 1,711
-47,891
38,583
+ 11,553

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)

Beef steers .. .. . " " . " " " " . .. . . " ... " .
Stocker steers ..... . .. .. ..... •..... . ......
Heifers and yearlings . ... " " " " " . " . " .
B ut~hcr COW9 • • ••

• ••••••••• • ••••• . •• • •• • •

Stocker cows ........ . ... ..• . . ....•. . .. . ..
Calves . . . "" " " " """""." .. . .. ,, .

r~~t:·: ·::::::::::::::::: :::::::::: :::: :

Oot<lber
1935
$ 9.25
7.25
9.25
5.50

"7:50
10 .55
5.50
9.25

October
1934
$ 7.25
4 .50
7.45
3.50
2.25
4.60
6.35
3.25
6.00

September
1935
S10 .00
7.00
10 . 00
5.50

" 7:75
11 .50
6.25
8. 50

FINANCE
Operations of
the Federal Reserve Bank

Member bank borrowings at the Federal
Reserve Bank reflected a steady decline
during the past month. Outstanding loans
on November 15 amounted to $50,000,
as compared with $4,65,000 a month earlier, and $17,000
on the corresponding date last year. There were only 5
banks indebted to the Federal Reserve Bank at the middle
of November as compared with 21 banks on October 15,
and 2 banks at this time last year. Outstanding industrial
advances to established industrial and commercial businesses for working capital purposes totaled $1,809,000 on
November 15, as compared with $1,826,000 at the middle
of October and $576,000 a year ago. During the past month
this bank increased its investments in United States securities $2,500,000 and on November 15, holdings were $7,500,000 in excess of those on the same date in 1934. The
reserve deposits of member banks with the Federal Reserve
Bank rose steadily during the past month, the total on November 15 being $12,145,000 greater than on October 15,
but $6,179,000 less than on November 15, 1934. Federal
reserve notes in actual circulation totaled $70,320,000 on
November 15, which was $3,560,000 larger than a month
earlier and $16,059,000 greater than a year ago.
CONDITION OF THE FEDERAL RESERVE BANK
(In thousnnru. of dollars)
Nov. 15,
1935
Total cash reserves . . .. . ... .... .... ... . .. . $125,706
Discounts for member banks . . . .. '" . . .. .. .
50
Other bills discounted ... .. . . . .. . . . .. ... . . .
NO
lle
Industrial advances ........... . . .. .... . . . .
1,809
Cemmitments to make industrial advancE'S ..
599
Dills bought in the open market .......... . .
121
United States Government seourities owned ..
78,975
All other investments ... ..... ..... . . . .... .
3
Totnl cnrnin~ llSBets ... . " . " " . . " " . " . .
80,958
Membor ban reserve deposits .. . . . ...... . .
121,491
Fedornl reserve notes in actunl circulation . . .
70,320

Condition of
Member Banks
in Selected
Cities

Nov. 15,
19a4
$120,364
17
None
576
None
154
71,475
441
72,663
127,670
54,261

Oct. 15,
1935
$121,722
465
None
1,826
598
122
76,475
None
78,888
109,346
66,760

The loans and deposits of member banks
~n selected c~ties reflected a further sharp
~ncrease dUrIng the five-week period endmg November 13. Loans on securities
were increased $696,000 between October
9 and November 13, but the total on the latter date was
$7,822,000 lower than on the corresponding date of 1934
" All other" loans (largely commercial) have reflected ~
noticeable expansion during the past six weeks. The total
of these loans on November 13 amounted to $150964 000
which was $8,711,000 larger than that on Octobe~ 9 ' and
approxima~ely $19,000,000 above the seasonal low ~'egis­
t~red late m July. The latest figure is the highest reported
smce the cl~se of 1933. Net demand deposits rose $15,?20,000 durmg the five:week period and time deposits
mcreased $596,000. The Investments of these banks in the
direct obligations of the United States showed little change
between October 9 and November 13, but the total on the

latter date was $14,,74.5,000 lower than a year earlier. Hold·
ings of securities fully guaranteed by the Government were
increased $308,000 durin g the five-week period, and were
$32,584,,000 greater than on November 14, 1934. Inves~
ments in other stocks and bonds were reduced $691,00
between October 9 and November 13. Their reserve deposits
with the Federal Reserve Bank stood at $69,94.7,000 011
November 13, which was $7,1572,000 larger than five weeks
earlier, but $10,14,3,000 below those a year ago.
CONDITION STATISTlCS OF MEMBER BANKS TN SELECTED CITIES
(In thousands nf dollars)
No\'. 13,
1935
United States seuuritic.q owned .. . . . . . ...... $157,787
Securities fully guaranteed by U. S. Govt.
owned .. . ............... . .. . .... . .... .
50,507
i\ll other steeks, bonds, and Aecllrities owned .
43,997
Lonno on seourities . . .. .. . . .... ... ... .....
41,328
All other loans . . . .. " .. . . " " . . ... " .. " .
150,964
Tolal loans . .... .. . . " " " " . . " . " " . " .
192,292
Net demand doposits .... . .. . .. . . .... " ...
351,737
Time deposits .. . ... . ... ... ... . .. . . . . . .. ..
121,760
Reserve with the Federal Reserve Bank
69,947
Bills payable and rediscounts with the F.;der~i
Reserve Bank . . . .. . ... . . . . .. ..... . . . . . .
None

Nov. 14,
1934
$172,632

0 0t. 9,
1936
$157,833

17 ,9~3

43,922
49,150
147,351
196,501
317,623
122,959
80,090

50,199
44,688
40,632
142,253
182,885
336,217
121,164
62,276

None

None

Deposits of
Showing a seasonal increase over. the
Member Banks
previous month's figure, the combI~e~
.
daily average of net demand and tIm
depOSIts of member banks in this district during Octobe~
?mounted to $775,552,000, as compared with $761,93.1,00 s
1I1 September. The gain occurred in net demand depOSIts, a
time deposits fell off slightly.
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollnrs)
Combined Total
Country Banks_
Reserve City Banks
Net demand Time Net demand Time Net demand Tim~
dopOllits dep08its deposits deposits deposits depOSits
Oct., 1934 . . .. .. $583,558 $194,618 $287,250 SI09,459 $296,308 $85,1 59
Nov., 1934 " " " 596,441
196,512 292,685
111,082 303,756
86,430
Deo., 1934" ." . 597,645
196,380 286965
111,630 310,080
83,750
Jan., 1935. .. . .. 590,459
196,436
279:110
113,255 311,349
83,18 1
Feb., 1035. .... . 609,125
197,155 289 957
112,586
319,168
84,66 9
Mn~., 1935.... . . 605,672
193,394
294:281 112,019
311,391
81,376
April, 1935 .. . . . . 606,348 193,849 299,163
112,252 307,185
81,597
296770
113,128 307,017
81,39 6
May, 1935 .. " " 603,787 194,524
June, 1935 .. .. .. 609,260
193,253 300:625 112,838
308,635
90,41 5
July, 1936 .. ... . 618,475 194,395
308,892 11 2,752 309,583
81,54!
AUg ., 1935" ." . 630,736
194,580 326,406
111,826 304,330
82,75
Se pt., 1935 ...... 667,887 194,050 313,465 lll,616
254,422
82,4 34
Oct., 1935.... . . 581,625
198 ,927 325,245
110,093 256,380
82,9 34
NOTE: l 'bo method ~f computing net demand depositA subject to reservo was
ohanged by the Banking Act of 1935 approved August 23, 1935.

Debits to
Individual
Accounts

Charges to depositors' accounts at banks
in leading cities in this district rose from
a total of $613,240,000 in September ~o
a total of $726,976,000 in October, t e
expans~on of 18.5 per cent being due in major part to s~~~
sonal mfluences. In October a year ago, aO'gregate debl
. IVI
b
to m d" dua I accounts at the same centers amounte d .to
$637,227,000. All reporting centers participated in the 111-

MONTHLY BUSINESS REVIEW
cr:ase over September, and only two failed to register a
gaIn over the same month last year
"'"-

DEBITS TO INDIVIDUAL ACCOUNTS
(Tn thousands of dollars)
October

~hilono .........
Bu'tiu ..........
Cen'!mont .......
D~IT~ana .......
EI Pas·· ........
Fort \~~r'tb' .....
~.Iveston . .': ::: :
P~r~S~r~h;;; .....
~oawell ... : . '. : : :
S~n Antonio .....
l' rovoport ..... .
Tfl:tnrknna- .. . .. .
Tu~~n .. ........
Waco .... · ......
Wichita ·Fali~.' : : :

-

1035
S 0,683
25,14.1
10,750
~,483

222,167
22, 100
72,320
24,097
165,208
6,570
2,907
61,144
35,351
6.066
8,562
11,400
15,6Rl
14,024

- - -

Ootobor

1034
S 7,274
29,903
16,858
3,021
183,144
22,618
63, 171
20,727
147.037
5.702
2,678
52,289
33,027
5,875
7,053
10,048
13,053
10,OUo!

- --

Pcroentnge
Percentago
change over September ohange over
year
1935
month
+33.1
- 16 .2
+ 17 .2
-1-15.3
+21.3
- 2.3
+ 14 .5
+16.3
+11.7
+ 15 .2
+ 8.6
+16.9
+ 4.2
+18.6
+21.4
+ 13 .5
+11.7
+32.5

$ 5,147
17,520
18,412
3,014
185,204
18.781
61,863
20,888
141,229
5,886
2,109
53,710
30,912
5,403
7,141
10,637
12,521
12,674

--- - --

+88.1
+43 .5
+ 7.3
+15.6
+10.0
+ 17 .7
+16.0
+15.4
+17 .0
+ 1l .6
+32.2
+13 .8
+14 .4
+28.0
+10.0
+ 7 .2
+24.4
+14.6

---

Totlll. . . .. $726,976
$613,240
$637,227
+14.1
+18.5
D' ~Ineludcs the figllrc.' of two banks in Texarkana, Arkansas, looated in the Eighth
l8trlOt.

5

Acceptance
Marlcet

The amount of acceptances executed by
banks in the Eleventh District and outstanding at the close of October was
more than twice as large as a month earlier, and also
showed a substantial increase over a year ago . The total
reported was $2,019,553, of which $1,770,94.2 represented
acceptances based on the domestic shipment and storage
of goods and $24,8,611 was the amount executed against
import and export transactions. On September 30 the combined total was $912,104" and on the last day of October,
1934-, it was $1,639,475.
Total savings deposits held by 125 banks
in this district on October 31 amounted
to $154,,396,4068, which compares with
$152,918,815 a month earlier, and $142,544,280 a year ago.
The percentage increase as compared with October 31, 1934~
was 8.3 per cent, which is the same comparison as was
shown on September 30. The number of savings depositors
on record the last day of October was larger than either a
month earlier or a year ago .

Savings
Deposits

SAVINGS DEPOSITS

Number of
reporting
banks
B:allunsmont ........ ...... ..
Ou

~I Pas~:: ::: ::::: : : : ::::::

oOlt Worth........ ........
1l~:S~otnon .............. . .
P t
..... .. . .... .. .. .. .
S~~ fnrtth~r. .. . .. .. .. .. .. .
SWhreve". oOrnt' ............................. '.
o
"

\V~~.................... .

Ita Falls
All others ... ::::::::::::::
10

3
00
2
3
4
112
6°
3
3
3

W

Ootober 31. 1935
Number of
Amount of
savings
savin~s
depositors
depOSits
0,107
S 3,717,602
76,767
11,854
35,085
17,1 29
67,344
5,422
17,703
22,264
IO,R3 1
6,220
40,545

25,113,461
5,009,097
11,301,604
10,623,387
32,ORO,340
2,106,818
16,774,478
10,637,656
6,283,444
3,274.430
25,784,152

Ootober 31, 1034
Number of
Amount of
savings
savin~s
depositors
deposits
8,560
S 3,473,482
75.497
11,348
33,830
16,818
64,128
4,046
16,704
22,311
10,740
5,870
48,417

September 30, 1035
Number of
Amount of
savings
savin~s
depositors
depOSits

Peroentage ohange
over year in
savings deposits
+ 7.0
+.8
+22.0
+ 0.5
+ 8 .7
+12.6
+ 0.7
+ 7.6
+ 1.2
+.8
+13.0
+ 12,6

24,922,573
4,844,732
10,300,048
9,768,804
20,024,154
2,003,130
15,596,242
10,511,144
6,233,307
2,808,314
22,868,351

9,130
76,716
11,752
34,905
17,115
67,063
5,355
17,881
22,233
10,863
6,183
40,460

---

Total . . . . . ... . ... .
125
320,361
$154,306,468
310,187
$142,544,280
+ 8.3
328,755
-Only 8 bauks in Dallas, 10 in IIolJston, 5 in San Antonio. and 67 banks in "All others" rO
llorted the number of savings dOll09itors.

NOVEMBER DISCOUNT RATES
Dallns

EI Pnso

Percentage change
over month in
savings deposits

+1.7

S 3,656,713
25,143,252
5,727,042
11,225,071
10,574,563
32,205,731
2,168.821
16,467,308
10,660.017
6,237,030
3,225,457
25,527,010

-

.1

+ 3.2
+1.5
+ .5

+ 1.2
+ 1.3

+1.0

-

+

.3
.7

+1.5

+ 1.0

---$152,018,815

+ 1.0

Prevailing rates:
Fort Worth

Houston

Son Antonio

Waco

5-8

4- 6

3-7
5-6

5-7
6

6

6-8
68
7-8
6-8

4
4-8
1*8
5-8

1 ~-6

5

3-6

4- 10
4-10
5-8
5-8

4-7
4-7
3-7
7- 10

6
6-8
6 8
7-8

6-8
6-8
3-7
8

INDUSTRY
1'extile
Milling

A further sharp increase was witnessed
in the domestic consumption of cotton
at all United States mills during the
past 1110nth. There were 552,187 bales of cotton consumed,
Which represents a large seasonal increase over the previous
?lonth, a gain of 5.6 per cent over October, 1934" and an
~crease of 2 per cent over the ten year (1925-340) average.
onsUntption amounted to 44,9,126 bales in September this
Year and 523,032 bales in October, 19340. Another significant
:eature of the October consumption is that it was the largest
or any corresponding month since 1929. During the first
duarter of the current cotton year, August through October,
ornestic consumption amounted to 1,409,723 bales, as comPared with 1,236,669 bales in the corresponding three
Illonths of 1934,. Stocks of cotton on hand at consuming

establishments on October 31 were seasonally greater than
the holdings on the final day of September, but they remained in smaller volume than on the same date last year.
COTTON CONSUMED AND ON HAND
(Bales)
October
Cotton-growing states:
Cotton consumed.... . .. . .. .
On band October 31 inConsuming estnbll8hments.
Pu blio storago nnd comprC88CB . . . . ..... . ..... .
United States:
Cotton consumed.... . . . . . . .
On bnnd Ootober 31 inConsuming establishmonts.
Puhlio storago and oomprC8BCB . . ............. .

1035

450,176

October
1034

087,603
803,208

8,376,848
523,032

1,1 80,513
932,648

552,187

412,302

August I to Ootobcr 31
'fhis season Last season

0,152,003

1,400,723

1,236,669

1,074,40"

1,140,403

8,481,001

0,380,804

------------------~~==~====~~~-----------------MONTHLY BUSINESS REVIEW

6

~----------------~~------------------------------A noticeable increase in activities of the
cottonseed oil industry was witnessed
during the past month in both Texas and
the entire United States. The receipts and crushings of cottonseed at both Texas and United States mills reflected
large seasonal increases over September, and were substantially above those in October, 1934,. Likewise the production of all cottonseed products during October was in
much greater volume than a month earlier or a year ago.
The demand for products, as measured by shipments during
the month, also evidenced a material increase in October. Despite the fact that receipts of cottonseed during the
first three months of the current season were smaller than
in the like period of the 1933-34 season, the crushings of
seed and the production of all products at United States
mills exceeded those a year ago, and at Texas mills they
were on approximately the same level as in 1934. Stocks
of cottonseed held by crushing establishments on October
31 were seasonally larger than a month earlier, but substantially below those on the same date last year. Supplies
of cottonseed products held on the final day of October were
also greater than a month earlier, and inventories of crude
oil showed an increase over a year ago.

Cottonseed
Products

·
season totaled 1 439 912 bales, which represents an mere ase
, ,
d ' th
me
of 8.9 per cent over the 1,321,783 bales shippe m .e sa of
perio~ of 1934. Increases over a year ago. m. the takmgs nd
Amencan cotton were shown for Great Bntam, France, a
Germany, while declines were registered for Italy, Japan,
and China.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Balcs)
October
Rercipts ................. . . . .
Exports .... . ............... .
Stocks, October 31.. .... , .... .

1935
397,558
129,508

Ootober
1934
229,880
102,918

August I to October 31
This season Lnst B~neo n
733,688
457,77~
190,807
353,90~
767,534
005,362

COTTON-GALVESTON STOCK STATEMENT
(Balcs)
Oct.31,

Oct. 31,
1934
1,500

In oomprCBSCS and dcpota .............. . ..... ....... . .

1035
3,000
2,400
48,300
1,200
712,634

19,000
500
581,362

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

767,534

005,362

For Grent Britain . .......... . ........... ... ... ..... . .
For Franco ........... . .. . . . ......... ............. . . .
For other foroign ports ..... . .. .. . .• .....••.... .... .. ..
For constwisc ports . .... . . . .... .. .... . .... . . . . . .... .. .

3,000

STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
ToxlIII
United States
Augltat 1 to Ootober 31
Auguat I to Ootober 31
ThiBaenson Last BenBon This Benson Lnat BcnBon

CottonBeed reoeived at mills
(tons) ................ .... .
480,240
Cottonseed cruBhed (tona) . . ...
308,535
Cottonseed on hand Oot. 31
203,123
(tons) .... .... .. . . ... .... ..
Crudc OIl produced
Jpounds) ... 80,610,227
143,002
Cake and menl ~r uoed (tonB)
Hulls produoed tons) .........
82,278
Linters produced (running
balcs) .. .. ........... . .....
50,214
Stocks on band Ootober 31:
Crudc oil (pounds) . . . ... . . .. . 10,456,215
Cakc and meal (tonB) .. . . . ....
61,071
Hull, (tons) .... . ... . ...... ..
57,400
Linters (ruoning balcs) . . ......
38,206

533,740
305,700

2,060,891
1,322,437

2,248,332
1,238,089

330,801
1,232,101
82R,020
80,750,660 308,043,829 377,778,488
143,100
505,801
554,918
81,049
324,847
338,050
60,274

287,051
64,704,874
253,294
121,502
140,874

50,843,100
258,923
130,137
145,889

October
Receipts .................... .
Exports .. ......... .. ....... .

Stocks, October 31. .. ... ... . . .

1935
463,220
177,777

Octobcr
1934
310,300
105,702

Augu. t I to Ootober 31
This season Last season
087,540
354,588
040,006

664,304
352,087
1,120,163

262,351

18,789,360
65,682
46,109
42,300

COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)

While the October exports of cotton from
the port of Galveston remained below
those a year ago, shipments from Houston continued in greater volume than in the corresponding
month of 1934. The latter increase, however, was insufficient
to offset the decline at Galveston; consequently the combined shipments from both ports reflected a net decrease
of 6.5 per cent from October last year. A seasonal increase
over the preceding month was evidenced at both shipping
centers. During the first quarter of the current season exports from Galveston were materially below those in the
like period of 1934" while shipments from Houston during
that period showed a slight increase. Receipts of cotton at
these ports during October reflected a substantial increase
over both the previous month and the same month of 1934,.
Stocks of cotton h~ld on October 31 were seasonally greater
than a month earlIer, and at Galveston they were somewhat
larger than a year ago.

Cotton
Movements

Although total exports of cotton from the United States
during October remained on a relatively low level as compared with earlier years, a large increase, seasonal in character, .was ~videnced over the previous month, and an
appr~clable Increase was again reflected as compared with
the lIke month of 1934•. There were 711,664, bales of cotton
~hipped during the past month, as against 486,764, bales
In September, and 615,593 bales in October, 1934. The
1925-34, average exports for October amount to 1,109,655
bales. Exports during the first three months of the current

SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORT8-(Bnlos)
August 1 to Oot<lber 31
ThiB season Last Beason
Recoipts . .. ..... . .......... . .... . . . . .. .... . ... . .... .. 3,214,201
2,~37,~~~
Exports: United Kingdom. .. .. . .. ....... . .......... . .
377,63~
102'100
Franoe.... .. ........ ............... ........
150,213
121'340
Italy.... .... ..................... ..... .....
104,545
105'822
Germany.... .. ...... ...... ........ . .... ....
174,563
141'447
Other Europe. . ... . .... ... .... ... ......... . . 223,294
213'318
Joron ........ . : . ......................... ..

348,716

AI othor countrlcs.. . .. .. .. .. .. .... ... .. .. ..
60,949
Total foreign ports . . . . . . . . . . .. .. . . . . . . . . . . . . . . .. . . . .. 1,439,012
Stocks held at all United States ports, October 31 . . . .•. . . 2,749,641

493'8'0
83 , 783
1,321'382
3,179,

SPOT COTTON PRICE8-(Middling Basia)
(Cents por pound)
Ootober, 1035
High
Low
11 . 40
11.45
10 .89
11 .25
11 .32

11 .05
10 .85
10 . 43
10 . 78
10 . 77

Nov. 15,
1935
12 .35
12 .30
11 .87
12 .20
12 .22

Production of crude oil in the Eleven~
Federal Reserve District amounted 00
34,,507,000 barrels in October, as compared with 33,527,4,.
barrels in the previous month, and 31,757,950 barrels l~
the same month last year. The increase over September wa
t reo
due to the longer month as the daily average outpU Id
flected a slight decline. A perceptible curtailment III fie .
activity was witnessed last month, as evidenced by the co~
pletion of 848 new wells in comparison with 1,161 in t e
preceding month. Of those completed in October, 585 wer
oil producers with an initial yield of 1,283~354, barre :;.
whereas 829 successful wells were completed 111 Septernb
and had a flush output of 1,693,623 barrels.

Petroleum

MONTHLY BUSINESS REVIEW
T Despite the fact that daily production in all sections of
, eXas except the east portion was larger in October than
in the previous month, the average for the State as a whole
decreased from 1,034.,380 barrels in the earlier month to
~022, 179, barrels in the lat.t~r month" The daily output of
ew MexIco and north LOUIsIana contInued to show a substantial upward trend,

-

OCTOBER DRILLING RESULTS

NorthTCll:IIS ...............
WostTCll:as .. .... ..........
ElIStToxllS ....... ........ .
Seuth Toxas . . .............
TCll:as Coastal.. ............

--- ---

N

Total TexllS .. . ... . .. 31,687,550
1,870,800
U181nno. .•... .......••
948,650

1.022,1 79
60,348
30,602

Total DiB .... . ... 34,507,000
trict

1,113,129

N~rt~i~o... ..... . .... . ... .

September, 1935
Total
Daily Avg.
+ 147,350
+ 1,093
+207,000
+ 895
- 25,450
- 10,578
+ 1,242
+ 98,350
+2~8,3oo
+ 1,147

- -150
+056,

-

4,451

CRUDE OIL PRICES
(Price per barrel)

~e'b COlIStal (34 gr. and above) .............. . ... . ....

Nortl Texas (40 ~r. and above) . .. . .. . ... . ........ .. ...
'-- ort. Louisiana 40 gr. nnd above) ........ . ..... . ......

-

Nov. S,
1935
Sl .12
1.03
1.08

Initial
Produotion
48,130
91,518
1,054,759
38,073
15,278

811
18
19

563
10
0

14
5

234
2
8

1,248,358
35,0058
4,343

848
1,161

585
820

19
38

244
294

1,283,364
1,698,623

The value of construction permits issued
at principal cities in the Eleventh District
during October rose to what was with
one exception the highest level for any month since May,
1931. Of the $3,758,078 reported valuation, $1,200,000
represented a permit issued at Waco for the construction
of a Veterans' Administration hospital. The month's total
compared with an aggregate of $2,4,25,034 in September,
and $1,790,818 in October a year ago. The sizable increases
shown in tile case of both comparisons were rather generally distributed among the reporting cities.

- 12,201
+ 3,598
+ 4,152

+979,600

Failures
76
27
52
58
26

Building
Permits

--- --- --- ---

-

Gas
Wells
6
1
1
2
4

(Oil Btatisties compiled by "The Oil Weekly," HouBton, Texas)

---

+168,300
+ 155, 150

Producers
1?9
88
207
80
63

October totals, diB
trict ......
Scptember totals, distriot ....

Inorcaac or deorease over

CompletionB
211
116
260
141
83

Total Texas .. . ... .
New MCll:ico ... ............
North Louisiana .. ..... .... .

OIL PRODUCTION-(BarrelB
)

October, 1935
Total
Daily Avg,
~orth TexllS . . . . . .. . .. . .. . .. , 3,550,850
114,543
E cst TellIS ...... .. , ......... 5,00~, 100
180,745
47J,fl02
Se":::hT~xllS ... . .. . ..... . . .... 14,028,950
1,893,850
01,002
TexllS C~~~a(. '. : : : : : : : : : : : : : : 0,0 10,800
193,897

7

Nov.9,
1934
$1.12
1.03
1.08

BUILDING PERMITS
October, 1935
No.
o\.marillo
u.tin ...... .. :::::
caumont .......
~lr,.'!s ChriBti. ..

" Paso:'.:::: :::
~tWorth . .....
veston . .. . .. .
oueton . ..... . .
~~tlrth~r .....
I
ntonto ... . .
~rcv eport ......
~co .......... .
lohita Falls .. . .

\
I

.

ir

32 5 47.138
183
267,353
68,114
155
74, 120
98
53a,~5 8
300
77
53,823
120
350,775
174
47,810
32~
063,340
91
27,111
220,fl03
268
128
129,955
30 1,256,933
17,445
18

Valuntion

42 S 139,444
128
!l3,H l
107
34,050
~0,2Jl
43
400
217,741
22,2~2
64
134
113,300
187
33,002
150
715,025
75,723
54
239
211,733
148
49,9 12
20
28,234
46
15,641

----------

Percentage chango
valuation
over yoar
- 60 .2
+135.0
+ 100 .0
+266.7
+144.9
+142 .2
+209.6
+ 42 .3
7.3
- 01 .2
+ 4.3
+129 . 4

-

+ 12 .3

--+109.9

Sept~mber,

No.

fer

1935

Valuation

27 S 22,721
029,318
150
55,093
199
40,230
48
302,019
377
18,585
31
824,000
93
102
40,974
554,150
262
27,957
103
184,783
218
96,427
107
121,507
23
1,210
3

- - - -1,653

S~,425, 034

Activity at Portland cement mills in
Texas was on a larger scale during Octothan in either the previous month or the same month
ast year. Total production amounted to 283,000 barrels, as
~Ornpared with 259,000 barrels in September, and 164,000
dar~'els in October a year ago. Shipments from these mills
2Ul'lng the month aggregated 314,000 barrels, as against
, 57,000 barrels in the preceding month, and 297,000 barrels
~n the corresponding month in 1934. Stocks of cement on
and OCLober 31 amounted to 611,000 barrels, being 5,1

Cement
(

No.

-----

Total. .... 2,00~ $3,758,078 1,761 $1,700.818
Inorease over ono th01l81\ud per cent .

f!
I

I
,

Valuntion

Ootober, 1934

Percentage change
valuation
over monlh
+107.6
- 57.5
+ 23.0
+ 84.2
+ 70 .6
+180.6
+ 8.3
+ 1.8
+ 19 .7
- 3.0
+ 19 .5
+ 34.8
+933.9

.

--+ 55 .0

Janunry I through October 31
No,

1935
Valualion

No.

1934
Valuation

291 $ ~54 ,3 92
297 5 373,375
1,509
4,804,474
845
797,940
1,165
509,243
912
282,803
579
471,440
272
313,383
3,930
3,194,092 3,784
1,970,102
458
971,470
425
223,479
1,138
2,822,405
003
754,587
1,133
571,12G 1,300
457,040
2,632
5,563,236 1,839
4,232,625
501,202
473
185,418
~ 784
. ,727
3,762,836 1,45S
784,241
1,288
1,584
980,723
1 ,070,4~~
280
1,727,80
200,410
~ 182
243
275,447
230,400
058
21,223 520,505,602 14,941

511,855,582

Percentage ohango
valuation
ovor poriod
- 31.9
+502.1
+ 80.1
+ 50.4
+ 62 .1
+334.7
+274.0
+ 25.0
+ 31.4
170 3
379 .
.8
+ 0 .8
+541.3
+ 19.0

t

--+123.0

per cent less than a month earlier, but 12,1 per cent larger
than a year ago.
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLA.ND CEMENT
(In thouBands of barrelB)

Oct.,
1935
Produotion at Toxas mills. . . . . 283
Shipmonts from TexnB millB.... 314
Stocks at ond of month at Toxas
mills .... .. ................
611

Percontnge
ohnngo ovor
Oot.,
Sept.,
1034
1935
+72.0 + 9.3
+ 5.7 +22 .2
+ 12. 1 -

5.1

January 1
througb
Oet. 31,
1985
3,043
3,092

Peroentage
chango
over year
+ 1.0
2.4

+

MONTHLY BUSINESS REVIEW
8
~----------------~----------------------------------

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(As compiled by the Board of Governors of the Federal Rcsel've System. Nov. 27. 1986)

Industrial production increased more than seasonally in
October and there was also a considerable advance in factory employment and payrolls. There was a continuous inflow of gold from abroad and an increase in bank deposits.
INDUSTRIAL PRODUCTION AND EMPLOYMENT
Volume of output at factories and mines, as measured by
the Board's seasonally adjusted index of industrial production, increased from 89 per cent of the 1923-1925 average
in September to 94, per cent in October, reflecting larger
output in a wide range of industries. Automobile production, which had been at a low level in September when
preparations were being made for the manufacture of new
models, increased rapidly during October and the early
part of November. At steel mills, activity increased slightly
in this period, contrary to the usual seasonal tendency, and
in the third week of November was at about 54 per cent of
capacity. Lumber production showed little change. Among
the industries producing nondurable manufactures, the
principal changes in output were increases of considerably
more than the usual seasonal amount at cotton mills, woolen
mills, and meat-packing establishments. At miries output of
bituminous coal was in larger volume than in other recent
months and output of crude petroleum continued to increase.
Factory employment, which ordinarily shows little change
at this season, increased considerably between the middle of
September and the middle of October, reflecting substantial
increases in the industries producing durable manufactures.
The most marked expansion was in the automobile industry
and there were smaller increases at railroad repair shops
and in the iron and steel, m,achinery, and nonferrous metals
industries. Employment at canning factories showed a considerable decline, largely of a seasonal character. Total
value of construction contracts awarded, as reported by the
F. W. Dodge Corporation, showed a considerable increase
in October followed by a slight decline in the first half of
November. In this six-week period total contracts were substantially larger than a year ago, reflecting marked increases
both in residential building and in other types of construction, but the volume is still at a relatively low level.

DISTRIBUTION
Railroad freight-car loadings increased by a considerable
amount from September to October, reflecting principally
larger shipments of coal and miscellaneous freight- In thi
early part of November car loadings were at a lower le e
than in October, chiefly as a consequence of seasonal evelopments_ Department store sales, which usually increase
at this season, showed little change from September to Oc~r
bel' on a daily average basis, and the Board's seaso na 2~
adjusted index declined from 81 per cent of the 1923-19
average to 77 per cent.

d

COMMODITY PRICES
The general level of wholesale commodity prices, as
measured by the index of the Bureau of Labor Statistics, waS
slightly lower in October and the early part of Nove~ber
than in the latter part of September, reflecting reductlO~S
in the prices of farm products and foods offset in pa~t. In
the index by an advance in prices of other commodlt~es,
particularly hides and leather products and textiles. ~nce~
of hogs and pork showed a decrease, as is usual at thIs sea
son, while cotton advanced.
BANK CREDIT
Excess reserves of member banks increased further by
$190,000,000 during the five-week period ended Novembe~
20, reflecting a continued inflow of gold from abroad.:\
the end of the period excess reserves were at a neW hlg
level of over $3,000,000,000. Total loans and investrnen~~
of reporting banks in 101 leading cities increased by $1~ ,
000,000 during the five weeks ended November 20, reflecung
principally an increase in holdings of United States Gover
ment securities. Adjusted demand deposits of these ban Ii
showed an increase of $550,000,000 for the period. The c~
money rate on New York Stock Exchange loans waS 111"
t
creased from 1/ of 1 per cent to % of 1 per cent in the lass
4
week of October. At the same time the rate on time loan
was increased from 14 of 1 per cent to 1 per cent, ~ut fe~
loans have been made. Other money rates have remam ed
former low levels.

"
k