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Monthly Business Review OF THE FEDERAL RESERVE BANK OF DALLAS • (Compiled November 15, 1936) ~=========================================================== Volume 21, No. 10 Dallas, Texas, December 1, 1936 This copy is released for publication in morning papers-- Dec • 1 ~=========================================================== DISTRICT SUMMARY ------------------------------------------------THE SITUATION AT A GLANCE Eleventh Federal Reserve District October II O:nk debits to Individual accounts (at 18 cities) . n pnrtment store sales............................................... eserve bank loans to member banks at end of II::ild~th .......................................................................... Co ng permit valuation at larger centers......... Commercial failures \number) ................................. olFmerclal failures liabilities) .............................. llroductlon (barre 8) ............................................. 1936 Chonge £rolll Sept emb er $890,878,000 + + 79,802 6,448,486 10 $ 80,000 41,516.060 + ................ $ $ 12.6% 15.7% -$189,000 40.8% 1 - $ 28,000 5.0% + ------------------------------------------------The major indices of business and industrial activity in the Eleventh Federal Reserve District reflected substantial h~asonal gains during October, and the level of activity was Igher than in any corresponding month in recent years. ~etail distribution, as measured by department store sales n principal cities, increased by 16 per cent between Septemer and October, and exceeded the October, 1935, volume by 3~ per cent. The combined sales of reporting wholesale firms owed a further increase of 9 per cent as compared with e previous month, and were 26 per cent greater than in the corresponding month last year. Payments on accounts at both wholesaJe and retail establishments evidenced a bll1t:rial improvement. There was also a betterment in the bUSlness mortality rate. Debits to individual accounts at f anks in principal cities continued upward, the aggregate ord the month being 13 per cent above that for September, an 23 per cent larger than in October last year. b ili FollOWing the seasonal decline in September, construction LC~ivi~y turned sharply upward in October. The valuation of ~lldIng permits issued at principal cities was 40 per cent gleater than in September, and 45 per cent above the Octo- ber, 1935, figure. According to the compilation of the F. W. Dodge Corporation, the value of construction contracts awarded in this district during October was 17 per cent and 35 per cent, respectively, higher than in September this year and October last year. The gross deposits of member banks in this district averaged $1,262,060,000 in October as compared with $1,216,899,000 in September. Their reserves with the Federal Reserve Bank amounted to $162,397,000 on November 15, which was $6,281,000 higher than a month earlier, and $4.0,906,000 in excess of those a year ago. The loans of reporting member banks in leading cities evidenced a further increase of $7,618,000 between October 7 and November 11, and on the latter date they were $37,177,000 larger than those on the corresponding date last year. Federal Reserve notes in actual circulation amounteq to $92,159,000 on November 15, representing an expansion of $1,131,000 during the month and $21,839,000 over the circulation on the same date last year. Developments in the agricultural and livestock industries were generally favorable. According to the November 1 report of the Department of Agriculture, the cotton crop showed some improvement which was offset in part by lower estimates for some feed and minor food crops. Farmers have made good progress with harvesting operations and the seeding of small grains. A good season obtains in practically all sections of the district, and the soil is in excellent condition for winter plowing. Ranges generally are in better than average condition and livestock are going into the winter in fine shape. BUSINESS TPholesale Trade Buying at wholesale was at a more active pace during October, reflecting the upward trend in consumer demand. The ~o~bined volume of business in the five lines of wholesale .ra e reporting to this bank was 8.5 per cent higher than ~n the previous month and the increase over the correspondIng month last year averaged 25.9 per cent. This latter figure compares with an average gain of 22.5 per cent for the past four months and an increase of 14.1 per cent in the first half of the year. Collections reflected a further noticeable increase from September to October, and they were considerably higher than a year ago both in total volume and in relation to the amount of notes and accounts outstanding. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW The October distribution of dry goods at wholesale, while showing a seasonal decline of 6.1 per cent, evidenced a gain of 26.7 per cent over the same month of 1935 as compared with an average of 27.4 per cent for the period July 1 to October 31. In the first half of the year there was a gain of only 12.2 per cent. Collections were very brisk, being 33.7 per cent larger in October than in September. The expansion in the outlet for farm implements which began in August continued at an accelerated pace in October. The October sales of reporting firms were 59.3 per cent in excess of those in the previous month, 103.7 per cent larger than in the same month last year, and the highest for any month in recent years. Collections evidenced a very large increase over the previous month. The buying of drugs at wholesale broadened during October. Sales of reporting firms rose 16.2 per cent above those in September, and exceeded those in October, 1935, by 27.2 per cent. The gain for the four months ended October 31 over the comparative period last year averaged 19.6 per cent. Inventories were increased 3.2 per cent during the month, and on October 31 were 19.8 per cent higher than a year ago. There was a general increase in collections between September and October, the average being 12.0 per cent. Distribution of hardware contin'ued to increase in October, Lhe aggregate volume of business registering a gain of 6.5 per cent over that in September, and an increase of 29.6 per cent as compared with October last year. Throughout the current year, sales have exceeded those of a year ago by a wide margin, but there have been only two months in which the gain was larger than in October. October collections were 18.3 per cent larger than in September. The business of reporting wholesale grocery firms was somewhat spotty during the past month, but the combined sales of reporting firms showed an expansion of 1.7 per cent from September to October. While the month's gain of 6.3 per cent over the corresponding month last year was smaller than the July 1 to October 31 average increase, the narrowing of the spread was due in part to the active business in October, 1935. Collections in October reflected a moderate increase. CONDITION OF WHOLESALE TRADE DURING OCTOBER. 1986 Percentage of Increase or decrease In- + Net S.le. Oct., 1936 comp.red wi th Oct. Sept. 1915 19 36 + Groceries .................. 6.3 Dry goods................ + 26.7 Farm implements.. +108.7 Hardware................ + 29.6 Druga...................... + 27 .2 Stocks Oct. 31. 1936 compared with s.me period I.st year 1.7 - 6.1 +59.8 + 6.5 +16.2 +11.1 +27.4 +72.2 +26.9 +19.6 R.tio of collection. during Oct. to .ccount. comp ared with Net S.les July 1 to date and notes Oct. 31. Sept. 30, outstanding 1915 1936 Sept. 30 +12.9 + 6.1 +18.8 - 7.8 + 1.1 - . 5 + 2.2 - 8.3 +19.8 + 8.2 92.1 41.8 20.0 50.4 62.7 Retail Trade Stimulated by cooler weather, the business of department stores in principal cities reflected a better than average gain from September to October. The month's sales, which were larger than in any corresponding month since 1929, exceeded those of the previous month by 15.7 per cent, and were 33.4 per cent higher than those in the same month last year. The latter comparison, however, is tempered by the fact that business in October, 1935, did not show the usual expansion. This bank's index of department store sales, which is adjusted to make allowance for seasonal changes, reflected the larger than seasonal increase by rising frOID 103.1 per cent of the 1923-25 average in September to 104..7 per cent in October. The index figure for October last year was 79.9 per cent. Total sales for the ten months of the current year were 19.6 per cent larger than in the same period of 1935. Inventories on hand at reporting department stores reflected a general increase, the aggregate dollar value on October 31 being 4.. 4 per cent higher than a month earlier, and 3.7 per cent above that a year ago. The rate of stock turnover in the first ten months of 1936 was 2.87 as against 2.55 in 1935. There was a substantial improvement in collections during the month. The ratio of October collections to regular accounts outstanding on October 1 was 42.4 per cent as compared with 37.0 per cent in September and 40.5 per cent in October, 1935. There was also a noticeable increase in collections on installment accounts. BUSINESS OF DEPARTMENT STORES Total sales (percentage) : October. 1986. compared with October. 1985 ............................................................................... .. October. 1936. compared with Septembel·. 1986 .......................................................................... .. January 1 to October 31. 1936. compared with same period last year................................... .. Credit sales (percentage) : October. 1936. compared with October. 1985 ................................................................................. October. 1936. compared with September. 1986 .......................................................................... .. January 1 to October 81. 1986. compm'ed with same period last year.................................. .. Stocks on hand at end of month (percentage) : October. 1986. compared with October. 1985 ............................................................................... .. October. 1986. compared with September. 1986 ........................................................................... . Stock turnover (rate) : Rate of stock turnover in October. 1985........................................................................................ . Rate of stock turnover in October. 1986....................................................................................... .. Rate of stock turnover Janum'Y 1. to October 81. 1985 .............................................................. . Rate of s'ock turnover January 1. to October 81. 1986 ............................................................... Ratio of October collections to open accounts l'cceivable and outstanding October 1. 1986 .. . Ratio of October collections to Installment accounts receivable and outstanding October 1. 1986...................................................................................................................................... Indexes of department store sales: Unadjusted-September. 1986.......................................................................................................... . Unadjusted-October. 1986.............................................................................................................. .. Adjusted-September. 1986.............................................................................................................. .. Adjusted-October. 1986 ................................................................................................................... _ Indexes of department store stocks: ~iilJgfJ~t~;!!fJ!i~t~:: ~: :i: ~ ~: ~: ~: ~ : ~:i:~ ~ ~ :i:~: ~ :~: :~ ~ : : : ~ ~ :i:~:i:~ ~: : : : : ~: : :~: : :~ :i : :~: : ~: ~:i:~:~:~: :~ : :i: i:~: : : :i: Dall.. Fort Worth Total Di.'t. t Houston + 28.1 + 2.9 + 14.8 San Antonio Others 85.5 21.7 + 21.8 + 81.4 + 6.9 + 22.1 + 80.4 + 14.5 + 16.9 + + 84.0 + 22.6 + 20.9 t + 31.8 17.1 20.1 + 26.8 .2 + + 17.6 + 82.4 + 6.2 + 20.9 + 26.1 + 14.2 + 8.5 + 81.2 + 14.8 + 18.4 t + + .6 5.1 .5 + + 10.1 + + t t + 87.2 + 24.5 + 21.5 2.8 1.0 6.2 7.8 7.6 5.0 + 88.4 + 15.7 19.6 8.7 4.4 .24 .29 2.18 2.89 38.9 .29 .86 2.55 2.87 42.4 16.9 .25 .80 2.85 2.67 44.2 .80 .35 2.78 8.14 45.1 16.4 15.2 .88 .44 2.94 8.22 48.9 .26 .83 2.21 2.57 87.7 16.7 10.5 119.3 142.8 112.5 117.0 107.5 127.1 110.8 111.5 118.2 106.9 117.0 102.8 98.7 96.2 91.9 85.9 109.8 120.4 108.1 104.7 65.7 66 .5 60.8 59.4 71.8 75.7 64.7 65 .8 42.1 46.8 87.9 89.9 51.9 56.4 47.6 49.9 65.5 68.1 69.5 60.8 - MONTHLY BUSINESS REVIEW Commercial Failures The commercial failure rate in the Eleventh Federal Reserve District remained at a low level during October. According to the October report of Dun & Bradstreet, Inc~rporated, there were only 10 failures during the month WIth liabilities of $80,000, which compares with 11 defaults 8 in September, having an indebtedness of $108,000, and 13 insolvencies in October, 1935, . with aggregate liabilities of $152,000. During October there were fewer failures and smaller liabilities in the Eleventh District than in any other Reserve district. AGRICUL TURE Crop Conditions Weather conditions during the past month have been favorable generally for harvesting operations and the seeding of small grains and have been beneficial to some crops. The Department of Agriculture's report shows that prospective per acre yields, based on the combined yields of 33 important crops, were higher on November 1 than a month rarlier in states wholly or partially attached to this district. he seeding of winter wheat made good progress in the heavy producing areas of north and northwest Texas and much of the crop is up to a good start and making rapid growth. While moisture supplies are ample in all except a few areas, the late October rains were beneficial to small ~ains and farm pastures. Farmers have made good progress ~vIth harvesting operations and in many sections this work IS nearing completion. The cotton crop in states attached to this district is turning O?~ better than was expected as the favorable weather con- dItIons permitted the development of late bolls. The Texas cr~p increased 90,000 bales, the Department of Agriculture's ~stllnate being raised from 2,915,000 bales on October 1 to ,005,000 bales on November 1. The latter figure is 49,000 bales larger than the 1935 production. While the yield per re was raised to 122 pounds, it is still 11 pounds lower t an the per acre yield last year, and 17 pounds below the ten-year average per acre yield. During the past month, the Improvements in the crop took place mostly in the north ahd northwest sections of the State. The appended table sows the indicated production by districts in Texas. h TEXAS-PRODUCTION OF CO'fTON BY DISTRICTS (In thousands of 500-pound G. W . bales) ) District ~. ~. Iiigh Plains ................................. lIl~rth ROiling Plains . .... ................. .. .. I ~ l~~i~~~~;=; ;:~;~ -~i Indicated Oct. I, 1936 415 898 410 358 72 67 1,035 1,008 467 466 67 62 72 72 282 297 84 78 107 108 3.005 2.915 Nov. I, 1936 Five-year Production :1Vcragc 1935 1928·32 338 603 117 743 468 46 83 864 113 91 2,956 428 759 119 1,847 770 60 108 643 204 152 4,580 SOURCE: Department of Agriculture b Ginnings prior to November 1 in Texas totaled 2,303,000 1ales, as compared with 1,903,000 bales to the same date in 935: On the basis of the current estimate of production, aprro)omately 79 per cent of the crop had been ginned prior to November 1 this year as compared with 66.8 per cent to .he same date in 1935. The estimated production in Louis~~na Was raised to 755,000 bales on November 1, which is 1 ·,000 bales higher than the October 1 estimate, and t199 ,000 bales ab?ve the 1935 crop. The p~r a?re yield for lIe State wa~ estImated at 271 P?unds, ~hIC~ IS 53 pounds targer than 1D 1935, and the hIghest 1D thll'ty years. On he other hand, the yield of cotton in Oklahoma is estimated at only 63 pounds per acre as compared with 117 pounds last year, 149 pounds for the ten-year average, and a low yield of 58 pounds in 1934. The indicated production for the State is 300,000 bales as compared with an estimate of 239,000 bales on October 1 and a harvest of 567,000 bales a year ago . The forecast for New Mexico was raised 7,000 bales in the November 1 report. The yields of feed crops in states attached to this district were lower than earlier expectations. The Texas corn crop was estimated by the Department of Agriculture at 59,668,000 bushels, which was 4,262,000 bushels lower than the October 1 estimate. On the other hand, the indicated production in Louisiana was increased 1,547,000 bushels. Production in Louisiana, Oklahoma, and Texas in 1936 is sharply lower than the output a year ago. The prospective harvest of grain sorghums in Texas declined 1,780,000 bushels in October, and the crop in New Mexico declined 375,000 bushels. Production of this crop in Oklahoma and Texas is only slightly more than one-half the amount produced in 1935. The peanut crop in Texas was benefited by favorable weather during October and the November 1 estimate of 91,960,000 pounds was 3,135,000 pounds higher than on October 1. There was an increase of 160,000 pounds in the Louisiana crop, but a decline of 1,200,000 pounds in the indicated production in Oklahoma. Rice production in Texas was estimated at 10,557,000 bushels on November 1 as compared with 10,764.,000 bushels on October 1, and an actual production of 8,840,000 bushels in 1935. The forecasted production of sweet potatoes in Texas was reduced 488,000 bushels during October, and the November 1 estimate of 3,782,000 bushels compares with a production of 6,300,000 bushels in 1935. While the indicated production in Louisiana increased 464.,000 bushels, the current estimate of 7,888,000 bushels is 968,000 bushels lower than the production in 1935. Weather conditions continued generally favorable for citrus fruits in Texas. The trees were reported by the Department of Agriculture as being in good condition and heavily loaded with fruit. The fruit is maturing rapidly and harvesting is actively under way. Ranges and livestock in most sections of the Eleventh District continue in good condition and they are well above the average condition for this season of the year. According to the November 1 report of the Department of Agriculture, range and feed supplies are ample, except that ranges are short in the northern Panhandle of Texas, southwestern New Mexico and portions of southeastern Arizona. In these sections there is still a deficiency of moisture. In the Edwards Plateau region ranges carry a good supply of grass and there is a large supply of dry feed; consequently, in practically all of the sheep producing areas of Texas, there is an abundance of feed and additional stock can be cared for. October rains were very beneficial to small grains which are up to a good Livestock 4 MONTHLY BUSINESS REVIEW start and will furnish considerable winter pasturage. Livestock, which have shown rapid improvement since the fall rains set in, are going into the winter in good flesh and indications are that they will winter under favorable conditions. The Department of Agriculture stated that there seems to be a tendency to hold ewe lambs. Commercial reports indicate that contracting of the 1937 wool clip is under way. According to the Department of Agriculture, the condition of cattle ranges in Texas was rated at 86 per cent of normal on November 1, the same as a month earlier, and practically the same as a year ago. Sheep and goat ranges, which were maintained at 92 per cent of normal condition on November 1, were well above the ten-year average condition for that date. The condition of cattle remained unchanged at 86 per cent of normal on November 1, which was 2 points lower than on the same date in 1935, but 3 points higher than the ten-year average. During the month, the condition of sheep rose 3 points and that of goats 1 point, and while the November 1 condition figures were 4 and 3 points, respectively, lower than on the same date a year ago, they were 3 points higher than the ten-year average. The condition of ranges and livestock in New Mexico and Arizona declined during October and the condition figure at the end of the month was lower than a year ago. While receipts of cattle and calves at the Fort Worth market reflected a substantial seasonal increase from September to October, they were eonsiderably smaller than in the corre- Movements and Prices sponding month last year. The arrivals of hogs were more numerous than a month earlier or a year ago. Reflecting the good range conditions there has been a small movement of sheep and lambs and market supplies have been very light. The cattle market held generally steady until the second week of November when heavy receipts brought a down· ward revision of prices on practically all classes of cattle. The trend of hog prices continued uneven with the market reflecting a loss of $ .50 for the month. Sheep and lamb prices remained generally steady. FORT WORTH LIVESTOCK RECEIPTS (Number) Oct. 1936 Cattle........................ Oalves....................... Hogs........................• Sheep ........................ Oct. 1935 Chnnge over year Sept. 1936 61,652 45,212 19,429 26,778 78,001 49,108 18,228 50,870 - 16,349 - 3,896 1,201 -28,597 55,198 86,965 15,757 82,979 + Change over month + 6,459 + 8,247 + 8,672 - 6,206 COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight) Oct. 1936 Beef steers..................................................................... $ 8.25 Stocker steers................................................................ 7.00 Heifers and yearlings.................................................. 10.00 Butcher cows................................................................. 5.00 Oalves.............................................................................. 6.85 Hogs................................................................................. 10.85 Sheep............................................................ ................... 6.25 Lambs............................................................................. 8.50 Oct. 1935 Sept. 1936 $ 9.25 $ 9.00 7.00 9.00 5.26 7.25 10.86 5.00 8.60 7.25 9.25 5.50 7.50 10.55 5.50 9.25 FINANCE Reports from member banks in leading cities in this district reflected a noticeable increase in deposits, loans, and investments during the five-week period ended November 11. The investments of these banks in the direct and fully guaranteed obligations of the United States Government totaled $226,735,000 on November 11, which represents an increase of $1,741,000 during the five weeks and a gain of $18,44.1,000 over the year. Holdings of other stocks and bonds were increased $2,550,000 between October 7 and November 11, and on the latter date they were $7,309,000 above those on November 13, 1935. While loans on securities showed little change, "all other" loans (agricultural, commercial, and industrial loans) reflected a further expansion of $7,570,000 during Condition of Member Banks in Leading Cities CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES (In thousands of dollars) Nov. 11, 1936 United States securities (owned) ...................... $184,674 Securities fully guaranteed by United 42,061 States Government (owned) ........................... A1\ other stocks, bonds, and securities 51,306 (owned) ............................................................... 44,428 Loans on securities......................................... ·..... 185,046 All other loans ....................................................... 229,469 Total loans............................................................. . 372,669 Demand deposita-adjusted· ............................... 121,295 Time deposits ......................................................... 87,786 United States Government deposits................. . 219,787 Interbank deposits................................................. 185,095 Balances with domestic banks ........................... . 108,931 Reserves with Federai Reserve Bank.............. . Bills payable and rediscounts with Federal None Reserve Bank...................................................... Nov. 13, 1935 Oct. 7, 1936 $157,787 $187,098 50,507 87,896 43,997 41,828 150,964 192,292 325,018 121,760 17,608 181,867 178,292 69,947 48,756 44,875 177,476 221,851 362,816 120,546 48,068 197,217 175,159 96,497 None None .Demand deposits other than interbank and United States Government, iess cash items reported as on hand or in process of co1\ection. the five weeks. These loans have evidenced a steady upward trend since mid-summer and reached a total of $185,04,6,000 on November 11, which represents a total increase of $35,815,000 over the four months, and a rise of $34,082,000 as compared with November 13, 1935. Between October 7 and November 11, there was an increase of $10,353,000 in demand deposits-adjusted, $74.9,000 in time deposits, and $22,570,000 in inter-bank deposits, offset in part by 8 decline of $5,282,000 in United States Government deposits. Against the gain in deposits, these banks increased their loans and investments $11,909,000, their balances with other domestic banks $9,936,000, and their reserves with the Federal Reserve Bank $7,4,34,000. Member bank borrowings at the Federal Reserve Bank amounted to only $39,000 on November 15, which compares with $145,000 on October 15, and $50,000 on the same date last year. Industrial advances outstanding on November 15 totaled $1,410,000 as compared with $1, 4,82,000 a month earlier, and $1,809,000 a year ago . While the reserve deposits of member banks averaged $155,760,000 in October as compared with $151,160,000 in September, there was an increase in average required reserves of $3,74,6,000 between the two months. During the first half of November there was a further increas~ in these deposits, the total on November 15 being $162,397,000 as compared with $156,116,000 on October 15, and $121,4,91,000 on November 15, 1935. Federal Reserve notes in actual circulation, which stood at $91,028,000 on October 15, rose to a new high Operations of the Federal Reserve Bank MONTHLY BUSINESS REVIEW level of $92,94A.,000 on November 9, but had declined to $92,159,000 at the middle of the month. The total of these notes in circulation on November 15, 1935, was $70,320,000. CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) Nov. 15, Nov. IS, 1936 1935 5~tal cash reserves.............................................. .. $178,777 $125.706 O~counts for member banks ............................... 50 39 None None 1.809 1.410 599 BiI~lInitments to make Industrial advances .... . 495 121 87 tJ .~ bought In the open market.. .................... .. 78.075 e~ States Government securities owned.. . 100.637 14 8 80 .958 102.187 m 121.491 Fed er bank reserve deposits ............................ 162.397 70,820 eral Reserve notes In actual clrculatlon. ... 92.159 oct. IS, 1936 $164,880 145 None 1.482 498 87 100.637 12 102.863 156.116 91,028 ~d~~t~I~\S a~!~~~~~~::::::::::::::::::::::::::::::::::::::::::: AU' ~o~t e~~~i::S!::!:r:.~:::::::::::::.·::::::::::::::::::::::::::::: Deposits of Member Banks There is presented a table showing the demand deposits-adjusted and time deposits of member banks in the Eleventh Federal Reserve District as of each 'call' date from June 30, 1933, to June 30, 1936, inclusive, segregated according to reserve city and country banks. DEPOSITS OF MEMBER BANKS (In thousands of dollars) Reserve City Bnnks Combined Totnl Call dates: Country Bonks (2) Demnnd Dernnnd Demand deposits Time deposit s Time deposits Time .djusted (1) Deposits adjusted (1) Deposit. adjusted (1) Deposits ~u~e 80,1988 (8) .. $379.662 $189.863 $176.729 $114.801 $202.938 $75.562 DC. 25, 1938 ........ .. 405.974 189.949 181.897 108.738 224.077 81,216 80, 1983 .......... 444.20 5 190,000 194.914 107,497 249.291 82,508 Jar. 5. 1934 ......... 489.524 193, 799 216.647 108.256 272,877 85.548 ou~e 80, 1934 ...... . 495.520 197.280 282,911 111,854 262,609 85,426 DC 17.1984 ........... 542.021 195.992 246,436 109.410 295.585 86.582 'fdec. 81. 1934 ........... 551.276 196.066 242.422 112,117 808,854 83.949 Jar. 4, 1985 ........ .... 572.57 6 195,056 259.032 111,861 813,544 83,195 une 29.1985 .......... 588,644 N 19G,210 276.556 118,421 807,088 81,789 Dov. 1. 1985 ........... 628.988 194.362 294,456 111.878 884,682 82,989 'fde •. 81, 1985........... 642.167 198,495 292.629 111,851 849,588 86.644 Jar. 4. 1986 ........... 662,216 196.626 300.624 109,285 861,592 87.841 une 80. 1986 .......... 697,486 200.661 827,858 110,966 870,188 89,695 (1) Demand deposits other than interbank and United States Government, less cash items in process of collection and, prior to December 81, 1935. less cash items reported on hand but not in process of collection. (2) OutlYing banks in r eserve cities which have been authorized to carry country bank reserves al'e included with country banks. (3) Beginning June. 1983, figures relate to licensed banks only. 'ttt". -------------------------------------------------------A.cceptance The value of acceptances executed by acMarket cep~ing banks in this district reflected a . large seasonal expansion during October, l~e total outstanding at the end of the month being $2,6,813 as compared with $899,508 on September 30 and $2,019,553 on October 31, 1935. The expansion occurred 6 largely in acceptances based on the domestic shipment and storage of goods in which classification the total increased from $54.8,196 on September 30 to $1,751,530 on October 31. Acceptances executed against export and import transactions rose from $351,312 on the former date to $385,283 on the latter date, Debits to Individual Accounts A general expansion in debits to individual accounts occurred at banks in 18 reporting cities in this district during October. The total for the month aggregated $890,878,000, which was 12.5 per cent larger than in September, 22.5 per cent above the total for October, 1935, and the largest volume for any corresponding month since 1929. The increase from September to October was shared in by all reporting cities, and there was only one city which reported a decrease from the corresponding month of 1935. DEB'ITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) Oct. 1936 Oct. 1935 Pctg. change over yenl Sept. Petg. chonge 1936 over month Abilene ............................ $ 10.841 $ 9.688 $ 8.088 +27.9 + 6.8 22,410 28,906 25,145 +29 .0 Austin ............................. +15.0 20.560 10 1 Beaumont....................... 22.640 19.750 +14.6 . 14.0 4,554 8.488 80 7 3.998 Corsicana ........................ . 19.9 247.229 266,366 222.167 Dalla8 .............................. + 7.7 22,415 22.109 32.064 +45.0 +48.0 EI Paso ............................ 13 1 88.412 72.829 +15.3 73.781 Fort Worth ................... _ . 21.4 24.097 28.787 34.874 +44.7 Galveston ........................ 165,208 189.676 214.824 +30.0 +18.8 Houston .......................... 7.569 8.484 6.670 +28.4 +11.4 Port Arthur ................... 2,798 +40.5 3.981 2.907 +35.2 Roswell ........................... 61,190 +10.4 + 10.3 61.144 67.521 San Antonio ................... 44.323 47,894 35.351 +85.5 Shreveport...................... + 8.1 7.2 6,966 8.H5 9.055 +30.0 Tex81·kana· .... ................ 8.675 +22.8 10.651 8.562 +24.4 Tucson ............................. 18,287 +14.8 11.400 +38.8 15.196 'fyler ............................... 15.789 16.775 15.581 Waco .............................. _ + 7.7 + 6.2 12,765 14.524 - 7.5 18.441 5.4 Wichita Falls ................. $791 .620 $726.976 +22.6 +12.5 TotaL ......... ~ 'Includes the figures of two banks in Texarkana, Arkansas, located in the Eighth District. t t t + + There was a further general increase during October in the savings deposits at 125 banks in this district which operate savings departments. Savings deposits at these banks aggregated $158,623,375 on October 31, reflecting a gain of 0.6 per cent as compared with those on September 30 and 2.6 per cent over those a year ago. There was a slight decline in the number of savings depositors during the month. Savings Deposits --------------------------------------------------------------------------------------------------SAVINGS DEPOSITS October 31. 1935 October 31, 1936 Numb.r --------------of re- Number of Amount of porting bonks 3 9* 2 3 4 saYIngs s3vings Sept. 30, 1936 Number of Amount of Percentage change Number of Amount of savings savings over year in savings savings depositors deposits depositors deposits snvings deposits depositors depo, lts 9.021 $ 3.640.980 9.197 $ 8.717.692 - 2.1 8.960 $ 3.614.484 80 .650 26.411.712 77,767 25.115.654 5.2 80,716 26,167.741 13.859 7.181.508 11.854 5.909.997 21.5 13.265 6.920.876 86.420 12.866.921 85.068 11.381.827 8.7 36.299 12,805.808 17,090 10.846,481 17.129 10.628.887 + 2.1 17.400 10.840.835 11" 68.217 29.781.241 66,880 32.683.479 - 8.9 68,128 29,828.887 2 6.858 2.318.479 5,422 2.196.818 5.5 5.348 2.309.538 6* 19.926 18,199 .085 17.666 16.774.478 + 8.5 20,177 18,112.964 3 23.887 11.177. 518 22.266 10.687.656 + 5.1 28,791 11.079.240 3 9.654 5.405.616 9,831 6,283.444 - 14.0 9,588 5,412.428 3 6.487 8.428.618 6.220 3,278.446 + 4.6 6. 517 3.422.159 52.118 27.865.876 50.485 26.025.181 • + 7.1 52.546 27 .641.838 76" TotaL.......................... 125 842,087 $158,623.875 829.785 $154,627.509 + 2.6 842.675 $157.655.24 8 ·Only 8 bunks in Dallas. 10 in Houston, 5 in San Antonio and 68 in "All othel's" repol·ted the number of savings depositors. t + Pereentoge change over month in savings deposit. .7 .9 3.8 .5 .1 .2 .4 .5 + + + + + + + + + + .9 .1 .2 .8 ~ -------------------------------------------------------------------------------------------------- MONTHLY BUSINESS REVIEW 6 DISCOUNT RATES CHARGED BY MEMBER BANKS DURING NOVEMBER. 1986 Pr.valllng Rat•• Dallas Rate charged customers on prime commercial paper such as Is now eligible for rediscount under the Federal Reserve Act................... _..................................- ............ . Rate charged on loans to other banks secured by bills receivable............................... . Rate on loans secured by prime stock exchange or other current collateral (nob including loans placed in other markets through correspondent banks): Demand ............... _.............................................. - ......................- ...... -...... - ...... -............. Time .................................................................................................................................... Rate charged on commodity paper secured by warehouse receipts. eto .... _.............. _... Rate on cattle 10an8....... _......................._..... _....·._·····.-...... -......- ......................- .........•............. EI Paso Fort Worth Houston San Antonio WaCO 1-8 5 6-8 l1h -6 4-6 4- 7 5-6 5-7 6 2-6 5 5 6-8 2-8 IJ1h-8 6 5- 8 6-8 5-8 4-10 4-10 1-8 5-10 3-7 8-7 2-7 5-10 6 6- 8 6- 8 7-8 5-8 8 6 6 INDUSTRY The operations of Texas and United States cottonseed oil mills during October were seasonally larger than in September and at Texas mills they were somewhat larger than a year ago. The crushings of cottonseed and the production of products at all United States mills fell slightly below those in October last year. While supplies of cottonseed products on hand at mills continued to increase seasonally, shipments of crude oil and linters were in larger volume than in the same month of 1935. Stocks of all products at United States mills and stocks of crude oil and hulls at Texas mills were lower on Octo'b er 31 than on the corresponding date last year. Supplies of cottonseed at mills increased substantially between September 30 and October 31, and holdings on the latter date at United States mills were 53.6 per cent higher than on the same date in 1935. Cottonseed Products STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texns United States August I to October 31 This season Last sellson August 1 to October 31 This season L:l.st senSon Cottonseed received at 491.452 mills (tons} ....................... 586.967 810.322 375.555 Cottonseed crushed (tons) . Cottonseed on hand 208.542 Oct. 31 (tons}._............... 221.288 Crude 011 produced (lbs.) ... 105.608.849 86.610.227 Cake and meal produced 172.342 143.902 (tons) ........................ _....... 100.457 82.278 Hulls produced ~tons} ..... _. Linters produce 59.214 80.008 (running bales} ............... Stocks on hand October 31: Crude 011 (pounds} .............. 17.856.641 19.456.215 69.168 61.971 Cake and meal (tons} ......... 50.246 57.460 Hulls (tons) .......................... 38.206 38.671 Linters (running bales) .... Source: Bureau of Census. 2.690.046 1.437.799 2.068.484 1.828.771 1.274.178 428.887.056 829.288 400.281.750 642.195 368.981 599.560 340.284 841.030 288.702 56.308.247 190.068 116.220 126.627 64.704.874 266.155 122.529 140.898 previous season. Mill purchases of raw cotton were unusually heavy in October, as is indicated by the fact that stocks on hand at mills rose from 848,734. bales on September 30 to 1,4.02,916 bales on October 31. The latter figure compares with stocks of 1,077,796 bales on the same date in 1935. The movement of cotton to the concentration points of Houston and Galveston continued in heavy volume during Oc" tober. The combined receipts at these ports totaled 949,727 bales which was 52.3 per cent larger than in September and 10.3 per cent greater than a year ago. Exports of cotton from the two ports reflected a large seasonal increase from September to October, and the totals for the latter month were substantially higher than in the same month of 1935. The combined shipments from the two ports during the first quarter of the current season averaged 52.0 per cent greater than in the corresponding period of the previous season. Cotton Movements Exports of cotton from the United States during October reflected a further seasonal expansion, the total for the month being 861,016 bales as compared with 569,624, bales in September and 711,664. bales in October, 1935_ Aggregate COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bales) Oct. 1936 Receipts ............................... .. Exporta .................................. Stocks. October 31.............. 527.307 274.467 August 1 to October 31 This senson Last scatO n Oct. 1935 940,202 473.681 828.716 307.558 129.508 733.68 8 100.807 767.534 COTTON-GALVESTON STOCK STATEMENT (Bales) There was a seasonal increase in the domestic consumption of cotton from September to October. Consumption in October totaled 64,6,4,99 bales, which was 16.9 per cent higher than consumption in October, 1935, and the largest figure for any October on record. Consumption in the three months of the current season aggregated 1,850,515 bales, a gain of 31.1 per cent over the comparable period of the Textile Milling COTTON CONSUMED AND ON HAND (Bales) . Oct. 1936 Cotton-growing states: Cotton consumed.............................. 541.385 Cotton on ha nd October 31 inConsuming establishments......... Public storage and compresses.. United States: Cotton consumed.............................. 646.499 Cotton o n hand October 31 inConsuming establishments......... Public storage and compresses.. Source: Bureau of Census, Oct. 1935 459.815 August I to October 31 This .... on La.t 8ea.on 1.182.664 1.239.525 7.988.695 552.840 1.549.039 935.756 8.377.191 1.850.515 1.411.812 1.402.916 8.028.140 1.077.796 8.482.269 Oct. 31. 1936 Oct. 31, 19J1 For Great Britain....................................................................... 3.500 For France................................................................................... 9.000 For other foreign ports............................................................ . 36.100 For coaatwise porta .................................................................... 4.000 In compresses and depots......................................................... 776,116 TotaL. ............................................................................ 828.716 ~ 767.584 3.0 00 2.40 0 48.30 0 1,200 COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) Oct. 1936 Receipts........................................... 422.420 Exports ............................................ 105.653 Stocks. October 31......................... Oct . 1935 August I to October 31 This senson Last senso n 468.220 177.777 706.387 355.447 517.216 68 7 '55:~ 85 4, 640,006 SPOT COTTON PRICES Middling Basis (Cents per pound) October. 1936 High Low New york ................................................................ New Orlean a........................................................... Dallas ....................................................................... Houston ................................................................... Galveston ............................................................... .. 12.64 12.65 12.03 12.34 12.29 12.01 11.97 11.51 11.80 11.75 Nov. IS. 1936 12.18 12.20 11.68 11.96 11.92 7 MONTHLY BUSINESS REVIEW , I shipments during the three months of the current season amounted to 1,613,127 bales, which represents a gain of 12.0 per cent over exports in the corresponding period of the previous season. Exports of cotton to France, Germany, and Japan continued to show substantial increases over a year ago. SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTS (Bales) August 1 to October 1 1 This .... on La.t lea. on 3,419,649 8,214,201 844,313 288,190 72,675 200,683 185,115 441,398 80,753 1,618,127 2,738,011 877,682 150,213 104,545 174,563 228,294 848,716 60,949 1,489,912 2,749,641 -----------------------------------------------------Crude oil production in the Eleventh District, after declining moderately in ~eptember, rose in October to the highest level recorded SInce the spring of 1933. Total output for the month ~12nounted to 4.1,516,050 barrels as compared with 39,9,350 barrels in the previous month, and 34,,507,000 ~arrels in October, 1935. The increase from September to c.tober was due only in part to the longer month as the dally average production was 21,582 barrels greater. The ~ate of drilling activity remained at about the same level as ~n the previous period. There were 1,04,8 wells completed )~ the four weeks ended October 24, and the 803 producers Yielded an initial flow of 1,122,54.8 barrels. Petroleum . Texas fields produced a daily average of 1,181,800 barrels In ~ctober, which was 24,207 barrels higher than in the prevIous month, and 159,621 barrels in excess of the daily average output in October, 1935. During the month there ~vas an increase at all fields except north Texas. Production In New Mexico reached a new peak with a daily average output of 80,827 barrels. In north Louisiana daily average - ~;i~~~~i::::::::::::::::::::::: uB ChristL ............ ~~~W····::::·.·:··::·. . . ·:::::::··:·. . Calves~~lh .................... ~~~~~n ... ::::::::::::::::::::::: San Arthur................... Shr ntonio.................. ~k~~~;:;i~:: : : : : : : :. I -I TotaL .......... October, 1916 No. Valuation 82 $ 548,601 147 221 .696 106,447 127 248,505 142 458,247 469 108,450 77 522,588 251 96,690 128 2,296,387 460 181 79,683 284 428,936 265,189 161 60,820 42 16,852 21 2,522 $5,448,486 'Increase over one thousand per cent, ,~ OIL PRODUOTION (Barrels) Increase or decrease North Texas.......................... West Texas........................... East T exas .......................... .. South Texas .......................... Texas OoastaL .................... Total Texas ....................... New Mexico.......................... North Louisiana.................. Total District................... over September, 1916 October, 1916 Tot.l D.lly Avg. Total D.ily AYIl 8,646,000 117,613 19,100 - 4,557 6,854,650 204,989 + 387,850 + 6,096 15,816,750 510,218 + 892,950 +12,758 2,678,550 86,405 111,100 + 828 :): 585,200 262,575 8,139,850 + 9,087 86,6 35, 800 1,181,800 +1,908,000 +24,207 2, 505,650 80.827 + 185,800 + 1,882 2,874,600 76,600 57,100 - 4,457 1,839,227 41,516,050 +1,986,700 +21,582 OCTOBER DRILLING RESULTS Initl.l Completions Producer. G•• Well. F.llure. Production North Texas...................... 192 128 12 52 39,804 West Texas........................ 191 146 7 88 228,355 East Texas........................ 201 184 2 15 644,802 South Texas...................... 292 214 7 71 91,664 Texas CoastaL................ 72 54 3 15 22,148 Total Texas................... 948 726 81 ill 1,025,768 New Mexico...................... 48 45 1 2 60,080 North Louisiana.............. 52 32 12 8 86,700 · October totals, District 170'48 808 2ii1 1,122,548 ··Sept. totals, District ... 1,070 817 35 218 994,689 ·October figures r epresent four weeks ended October 24, 1986. ··September figures r epresent four week s ended September 26, 1936. « CRUDE OIL PRICES (Price per barrel) Nov. 6, Nov. 4, 1916 191$ Texas Coastal (34 gravity and above) .................................. $1.22 $1.12 North Texas (40 gravity and above) ..................................... 1.08 1.03 1,08 North Louisiana (40 gravity and above) ............................. 1.10 (011 statistios complied by Tbe 011 Weekly, Houston, Texas) Building Construction activity in this district turned sharply upward in October. The valuation of building permits issued at fourteen principal cities rose to $5,448,4,86, which was 40.3 per cent larger than the September volume and 45.0 per cent in excess of the total for the corresponding month a year ago, The October volume was the largest for any month since March this year, and was higher than any October figure since 1929. The cumulative total for the ten months of the current year amounted to $50,237,544, which was 89.5 per cent larger than in the corresponding period of 1935, BllLDING PERMITS Amarillo \)alf production dropped to 76,600 barrels, which was the lowest figure recorded since June. October, 19H No. V.lu.tion 82 $ 47,138 267,858 183 68,114 155 74,120 98 866 538,258 53,823 77 850,775 120 174 47,810 663,340 822 27,111 91 220,903 268 129,955 128 1,256,983 30 17,445 18 2,062 $8,758,078 Pctg. change valuation over ycar • - 17.1 :): 56.3 235.3 - 14.1 + 92.2 + 49.0 +102.2 +246.2 +198.7 + 94.2 +104.1 - 95.2 3.4 + 45.0 September, 1916 V.luatlon No. 39 $ 59,559 576,881 154 61,6 37 180 212,305 113 466,448 418 56,152 63 414,949 288 166,924 115 410 1,077.594 69,519 161 258,598 232 341,176 186 88,708 38 87,945 15 2,802 $8,883,880 Pctg. change valuation over month +812.7 - 61.6 + 72.7 + 17.1 1.8 + 84.2 + 25.9 - 42.1 +118.1 + 14.5 + 65.9 - 22.8 - 27.9 - 55.6 + 40.8 J.nuary 1 through October 11 1916 191$ No. Valuation No. Valuatlon 291 $ 254,892 809 $ 1,055,078 3,920,401 1,569 1,612 4,804,474 1,186 970,870 1,165 509,243 471,440 1,127 2,372,879 579 4,939 8,692,450 3,986 3,194,092 458 648 808,850 971,470 7,476,622 1,138 2,822,405 1,796 1,109 1,440,405 1,138 571,126 15,814,432 2,682 8,866 5,568,236 1,405 818,080 784 501,202 2,496 3,770,989 5,727 3,762,836 1,323 2,151.394 1,288 1,076,431 280 612,166 1,727,808 871 248 187 337,978 275,447 22,869 $50,287,544 21,228 $26,505,602 Pets. chan,. valuation over period +814.7 - 18.4 90.6 403.3 172.1 - 16.7 +164.9 :1=152.2 184.3 + 62.2 :): .2 99.9 - 64.6 + 22.7 i + 89.5 MONTHLY BUSINESS REVIEW 8 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Complied by the Board of Governors of the Federal Reserve System) Volume of industrial production increased seasonally in October and there was a substantial rise in employment and payrolls. Prices of a number of industrial raw materials and finished products have advanced. PRODUCTION AND EMPLOYMENT In October the Board's seasonally adjusted index of industrial production was at 109 per cent of the 1923-1925 average, about the level of the three preceding months. Steel production was in larger volume than in any other month since 1929, and the rate of activity was sustained in the first three weeks of November. Output of automobiles rose sharply from September to October. The increase in this period was less than a year ago, reflecting the fact that this year the date of the shift to production of new models was less uniform among the leading producers, but in the first three weeks of November production increased further and was larger than last year. Activity at textile mills, which usually increases in October, declined slightly from the high level of September. In the meat-packing industry output showed a further increase. Coal production increased seasonally, and production of crude petroleum continued at recent high levels. Factory employment increased by more than the usual seasonal amount between the middle of September and the middle of October. Increases in employment were general among the durable goods industries, with the largest expansion reported at factories producing automobiles and machinery, while changes in employment in the nondurable goods industries were largely of a seasonal character. Factory payrolls rose by considerably more than the usual seasonal amount. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, was slightly smaller in October than in September, with a decline in publicly·owned projects partly offset in the total by an increase in awards for private non-residential construction. DISTRIBUTION Sales by department stores and by mail·order houses serving rural areas increased from September to October by a larger amount than is usual at this season. Variety store sales showed a less than seasonal rise. Freight·car loadings increased further in October, reflecting chiefly a larger volume of shipments of miscellaneous freight and of coal. COMMODITY PRICES The general level of wholesale commodity prices ad· vanced somewhat during the first three weeks of November, following two and a half months of little change. Since the middle of October prices of a number of industrial raW materials, particularly nonferrous metals, hides, rubber, silk, and wool, have shown a considerable rise and there have also been substantial increases in the prices of some finished products, including automobile tires, glass, woolen goods, and cotton goods. BANK CREDIT Member bank reserves increased in the four weeks ended November 18, chiefly as a result of transfers of gold to the United States. On that date member bank reserves were $2,270,000,000 larger than legal requirements, the highest level since the increase in reserve requirements which be· came effective in the middle of August. Adjusted demand deposits at weekly reporting member banks in leading cities have continued to increase, and on November 18 amounted to about $15,4.00,000,000. Since the end of last May these deposits have increased by over $800, 000,000, reflecting a rise in deposits outside New York City. Time deposits at reporting banks have remained at about the $5,000,000,000 level. Holdings of United States Government obligations at reporting banks have recently declined somewhat further. Since the end of June the decline has amounted to about $300,000,000 and has been at New York City, with little change elsewhere. Holdings of other securities have declined in recent weeks, reflecting chiefly a reduction in the amount held by New York City banks. Loans to customers have shown some further increase.
@FedFRASER