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Monthly Business Review OF THE FEDERAL RESERVE BANK OF DALLAS (Compiled November 15, 1937) Volume 22, No. 10 Dallas, Texas, December 1, 1937 'fhi . copy is r eleased for publication in mor ning papers- Dec. 1 ~=================================================~~===== DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Fedoral Rosen'o Distriot Ootober 1037 $022,320,000 g:~~r~~bit~ to individual account. (18 cities) . .. . Wholes lent s~oro aules ........ . ....... . .... . .. Valuo o~ e ra c salos (fivo lines) ... ........... . ValuationC~rS6~ihf!~n contr.aols sw~r.ded . .. .... . . i'ii,7il',OOO Commero' I r '1 g permIts (14 CItIes) ........ . $ 3,085,273 10 ComlDcro:~1 r~it~;os «I~uh~\>O!) .. ... .. ...... ... .. D.ily os In Ihhos) .. . .... .. .. . .. . . $ 205,000 ,vorngc orude oil produotion (b.rrol. ) ... . . 1,645,802 Percontage ohange from Oot., 1036 + - 3.5 1.0 3 .3 + 20.8 - 26.0 + 00 .0 +156 .3 22.0 + Sopt., 1037 + + 2.8 2.0 5.0 + 28 .0 - 31.0 +111.1 - 27.0 2 .0 --------------------------------ReBu~iness. an.d ind.ustrial activity in the Eleve~th Federal selve DIstrIct eVIdenced a downward trend In October, and in some instances operations were below those of a year ago. Due in part to high temperatures, which retarded cons~er buying of fall and winter merchandise, department ore business failed to show the customary gain from a~~telllber to October, increasing only 2 per cent. Daily Di r~.ge ~ales were about equal to those of a year ago. stllbutlOn of merchandise at wholesale reflected a nonse~onal decline of 6 per cent from that of a month earlier, :.n Was 3 per cent less than in October, 1936. A contractIOn; contrary to seasonal, was also evidenced in the cotton lex tIle industry, and operations were below those in October ~~t year. Bank debits to individual accounts increased con:Ioerably less than seasonally, and the 4 per cent gain over y year ago was somewhat smaller than the average for the shar to date. TIle number of commercial failures increased vO rply over the month, but continued in relatively small p ume. Liabilities of defaulting firms were reduced 27 mel' ent from September to October, but they remained in Uc larger volume than in the same month last year. S i h p ~ile the valuation of building permits issued at fourteen oflnclpal cities in October was smaller than a month earlier i~ year ago, the value of construction contracts awarded than ~ EI~venth Dis~rict as a whole was substantially larger In eIther of the two comparative months. ili r Petroleum output declined further during October and the first half of November to comply with reduced production allow ables, effected to meet the seasonal decline in consumption. Following a substantial reduction on November 1, quotas in Texas were again reduced on November 16 in a fu r ther effort to balance production and demand. Crude prices continued generally firm through November 15, despite a weak gasoline market. Except for the declining price level of farm crops, agricultural conditions continued generally favorable. The indicated production of cotton in the Eleventh District was increased further by 92,000 bales to a total of 6,189,000 bales on November 1. The forecast for feed crops was reduced somewhat, but continued well above the 1936 production. A material improvement was indicated for the 1937 pecan crop, and the November 1. estimate for almost all crops, except feed, about equalled or exceeded the 1928-32 average production. Seeding of winter wheat made good progress, and the crop is reported in good condition. Moisture conditions are good except in southern Arizona and, south Texas, where more rain is urgently needed. Range conditions continued generally good except in the dry areas. Cattle and sheep are going into the winter in good flesh. Extension of bank credit continues to expand at weekly reporting member banks in leading cities~ Total loans amounted to $251,331,000 on November 10, which is $4,368,000 larger than four weeks earlier, and $21,862,000 greater than a year ago. Investments of these banks declined further by $1,691,000. The daily average of gross deposits at all member banks in this district rose ' to the highest level on record in October, totaling approximately one and one-third billion dollars. Coincident with the increase in deposits, member bank reserve balances with the Federal Reserve Bank rose to a new high level of $189,819,000 on October 19, and during the month these balances averaged $41,534,000 in excess of legal requirements. There was relatively little-change in Federal Reserve note circulation. BUSINESS Wholesale Trade With consumer purchases on a lower level, retailers were more cautious in trib . placing orders, and as a result the dis\Vh ltlo~ of merchandise through five principal lines of o esa e trade in this district declined from September to October, contrary to the established trend at this season. Business was also in smaller volume than a year ago. Collections reflected a large seasonal increase over those of a month earlier, and in most lines of trade were larger than in October, 1936. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 Demand for groceries at wholesaie declined 7.1 per cent from September to October, but continued 7 per cent greater than a year ago. The latter increase, however, is considerably smaller than the average gain for the first ten months of 1937. Distribution of dry goods was 17.3 per cent less than in September, and 14.. 6 per cent below that of a year ago. While sales of farm implements were 24.7 per cent smaller than the very heavy volume in October, 1936, they reflected an average seasonal gain over those in September. The business of wholesale hardware firms evidenced a nonseasonal decline of 4.5 per cent from that of a month earlier, but was in slightly larger volume than a year ago. Drug sales were maintained on the high level of the preceding month, and were 6.4 per cent greater than in October last year. CONDITION OF WHOLESALE TRADE DURING OCTOBER. 1037 Percentage of inorease or dccrease in- Grooeries ........ Dry goods ....... Farm implements .. Hardware ........ Drugs> ........ Net Sales Oot .• 1037 compared with Oct., Sept., 1936 1037 + 7.0 - 7.1 - 14.6 -17.3 -24. 7 +13.6 + 1.5 - 4.5 + 6.4 + .04 Net Sales Jan. 1 to Oot. 31 oompared with same period last ycar +14.4 + .8 +22.0 +14.4 + 7.5 Stocks Oct. 31. 1037 compared with 00t.31, Sept.30, 10S6 1037 - 4 .7 + 3.4 +14 .0 - 8.8 +33.8 + 3 .8 +11.3 - 4.0 +17.7 + 4.0 Rotio Oct. eolleotions te acoounts outstanding Sept. 30 80.3 37.8 15 .5 50.3 77.0> >Drug data oompiled by the United States Department of Commerce. Collection ratio represents median percentage. Retail Trade Demand for merchandise at department stores in principal cities of the Eleventh District was retarded somewhat in October, due in part to the unseasonably warm weather that prevailed throughout most of the month. The aggregate dollar volume of sales increased considerably less than is usual from September to October, and was below that of a year ago for the first time since March, 1935. With regard to the latter comparison, however, daily average sales were slightly higher than a year ago, as October this year had one less business day than October, 1936. The total value of consumer purchases during the month was 2 per cent larger than in September, but ' 1.9 per cent less than in October last year. Distribution of merchandise during the first ten months of 1937 was 8.8 per cent greater than in the corresponding period last year. The value of inventories on hand October 31 at reporting firms was 4 per cent and 14 per cent, respectively, greater than on September 30 ~his year and October 31 last year. The rate of stock turnover continued lower than in 1936. Collections on outstanding open accounts evidenced an appreci.able improvement during the month, increasing from 38.0 per cent in September to 41.6 per cent in October. A small increase was also shown in collections on installment accounts. BUSINESS OF DEPARTMENT STORES Total sales (percentage): Oetober, 1037, compared with October, 1036 ................................ . ... •• Ootober, 1037, compared with September, 1037 .. ..... ....... .... ......... . ... : :: : •• : : January 1 to October 31, 1037, compared with same peried last year ..... . .. ...... .. . ... . Crcdit sales (percentage): Ootober, 1037, compared with Ootober, 10M ..... ........... ... ......... ... ...... . .... .. Ootober, 1037, oompared with September, 1037 .....................•........... January 1 to Ootober 31, 1037, compared with same period last year ................ :::::: Stocks on hand at end of month (peroentage): Ootober, 1037, comparcd witli October, 1036 ........ ........ .............. . .. . .... • October, 1037. compared with September, 1037 .................. ....•....... .. .. ::.:: Steek turnover (rato): Rote of stock turnover in October, 1036 .................................. . ....... . ... .. Roto of stook turnover in Ootober, 1037 ............................................... . Rote of stook turnover January 1 to October 31, 1036 . . . ........ ..... ....... ......... .. Rote of stock turnover January 1 to October 31, 1037 ................... . ............. . Rotio of Ootober colleotions to open aocounts receivable and outstanding October I, 1037 . .••....• Rotio of October oolleotions to installment nooounts reoeivable and outstanding Ootober I, 1037 .• Indexes of department store sales: Unadjusted-September, 1037 ...... ................. .............. '" ................ . ~~~~t:~Se~t~~~~', m~ .::::::::::::::::::::::::::::::::::::::::::::::::::::::::: AdJusted-Ootober. 1037 ... . ... .....•..... .•. .. .... . .........................••...... Indexes of department store stocks: Unadjusted-September, 1037 ....................................................... .. Unadjusted-October, 1037 .. ............... .. ............ .......... ................ . Adjusted- September, 1037 .. ........... .. ......................................... . Adjusted-October, 1937 ...................... . ............ . ........................ . >Revised. Dallas - 5.8 + 2.5 + 7.3 Fort Worth - 3.0 +10.4 + 5.3 Houston + 3.0 - 0.0 +13.4 San Antonio + 2.1 .1 + 0.0 - Others + .8 + 2.7 +10.5 Total Distriot - 1.0 + 2.0 - 2.1 + .0 +10.8 + .8 +20 . 2 + 5.B + 3.3 -12.6 +17.2 + 5.0 + 2.1 +11 .0 + 2.5 + 1.6 +11.0 + .8 + .7 +11.3 +18.6 + 2.6 - 1.0 + 7.4 +18.1 +12.3 +12 .0 +1.4 +16.B +14.4 + 4.0 .44 .35 3.23 3.02 . 42 . 1 16.4 136.2 140.6 128.5 115.2 76.7 77.0 70.4 60.6 AGRICUL TURE Heavy rains during the first half of October delayed harvesting operations in the Eleventh District somewhat, but thereafter conditions were generally favorable, and this work progressed . rapidly. Seeding of winter wheat made good progress, and in the principal producing areas of north and northwest Texas it was reported in good condition. Additional rains are needed, however, for the germination and growth of late planted seed. Moisture conditions elsewhere are generally good except in southern Arizona and south Texas, where rainfall has been mostly light to moderate. Crop Conditions Conditions continued generally favorable for cotton, and .32 .31 2.60 2.70 38.0 0. 7 105.3 127.6 108 .6 111.0 60.8> 75.0 62 .0> 65.2 .30 . 27 2.82 2.08 40.5 .35 .31 3.14 2.00 45.2 14.0 134.4 114.1 133.1 100.7 101. 7 101.8 09.7 00.0 45.3 40.6 40 .8 42.8 61.8 62.4 56.7 55.2 + 2.0 .20 .25 2.43 2.23 41.2 17.3 + 8.B .36 .31 2.00 2.74 41.6 14.7 121.0 122.2 114 . 2 106.3 73 .0· 76.2 67.2> 67 .of - the prospective production for 1937 was agai; increased ~Y the Department of Agriculture. There was little change III the indicated yield per acre in Texas during October, but the November 1 production forecast was placed at 5,050,000 bales, which is 25,000 bales larger than the estimate a month earlier, and compares with an actual harvest of 2,933,000 bales in 1936, and a 1928-32 average production of 4,580,000 bales. Light frosts covered the northern portions of Texas prior to November 1, and the Department of Agricu l. ture stated that they are believed to have benefitted the cotton crop, as plants were partially defoliated, thus petd mitting sun rays to penetrate to the unopened bolls an providing them with warmth necessary for maturation. From the appended table, which shows the estimated production MONTHLY BUSINESS REVIEW of. cO.tton by districts in Texas, it will be noted that the pnnclpal increases during the month occurred in the northern sections of the state. TEXAS-PRODUCTION OF COTTON BY DISTRICTS (In thousands of 500-pound groBS weight bales) Indicatod Nov. 1, Oot. 1, Produotion 1936 1937 1937 N.W Hi hPI' 403 820 808 N. W: Roflin ~In~ ...... .. ... .. .. . 375 940 953 Nortl C g all'" ........... .. . 70 81 89 North Erntral Plains . .. ... .... ...... . 1,008 1,350 1,315 East Tox ack Lands .. . . . . ....... . .... . 460 700 697 66 80 76 75 100 95 Southr plato~u . . ............. .. ... . 282 580 681 Coast~fPla:'lcs ........... ..... •.. 217 229 85 South Texas . . '. '. '. : : : : : : : : : :: : : : : : : : : : 109 182 182 t~~·tC?::::::::::::::: :::: ::::: : Total State. .. .. . .. . .. .. . . . '5;OsO" 6,025 SOURCE: United Statcs Department of Agr!oulture. 2,933 Five-yonr average 1028·1932 416 749 124 1,349 775 57 108 643 210 149 4,580 r 8 The indic'ated harvest of cotton in Louisiana was raised b er cent during October, and the forecast of 1,080,000 a es on November 1 was only 10,000 bales under the ~e?ord growth in 1904. The estimated yield per acre in hIS state WaS increased from the recor~ level of 309 founds on October 1 to 334 pounds one month later. The chrecast for Oklahoma and Arizona crops remained unA. anged at 858,000 bales and 260,000 bales, respectively. moderate increase was indicated for the New Mexico crop, where the 136,000 acres estimated for harvest are N'Pected to yield one bale to the acre. Ginnings prior to Ovember 1 in the five states attached to this district amOunted to 5,222,000 bales, which is approximately 71 per cent of the indicated production on November 1. Last ~ear, 79 per cent of the crop had been ginned prior to this ate. The November 1 cotton estimate for the United States as a whole points to a record harvest of 18,243,000 bales. 1 Dry weather in most sections of Texas prior to October damaged feed crops more than earlier conditions indicated, and the Department of Agriculture again reduced Prospective yields for 1937. The Texas corn crop was ~ ;ced at 72,048,000 bushels on November 1, which is , ;2,000 bushels smaller than the estimate a month earlier, . 12 per cent less than the 1928-32 average production. N hlle a small reduction was also made in the forecast for A. e~v Mexico, corn prospects in Louisiana, Oklahoma, and Thlzona remained unchanged from those a month earlier. £1 e November 1 estimate for all states attached to the . d~enth District was larger than the 1936 harvest. The ~n lcated yield of grain sorghums in Texas and New Mexico \,vas ~'educed during October, but the November 1 forecast emallled above last year's production by a wide margin. W Ii Tfe peanut crop in states attached to this district, pare cu arly Texas, is not turning out as well as had been a~~ecte~. The Texas crop was !'educed 19,950,000 pounds, is whIle the November 1 estImate of 87,150,000 pounds p ~bout equal to the 1928·32 average production, it is 12 e th .l cent below last year's yield. In Louisiana and Oklahoma re~s cr~p was reduced 800,000 pounds and 900,000 pounds, is ge~tlVely. A larger pecan crop than had been expected f elllg revealed by the current harvest. The November 1 10~;~ast showed an increase of 2,4,20,000 pounds in Texas, ~OOO pounds in Oklahoma, and 935,000 pounds in abUls1ana. In each instance, the estimated growth of pecans ind.ut equals or exceeds the five-year average yield. The \Vh lcalted harvest of sweet potatoes in this district is someat arger than a year ago. t' . 3 Growing conditions during October were generally favorable for the Texas citrus crop and the prospective production of both oranges and grapefruit was increased slightly. The November 1 forecast, however, remained below the 1936 yield. Cash Farm Income Declining price levels of farm products were reflected in the cash income of farmers in this district during September. Despite heavy marketings of the large 1937 farm crops, cash income was only 5 per cent larger than in September last year, whereas the average gain over 1936 for the first nine months of the current year was 23.4 per cent. September receipts from the sale of crops in Arizona and Louisiana were less than a year ago, in Texas they were about the same, and in New Mexico and Oklahoma there was an increase, the latLer being largely due to poor harvests in 1936 following a severe drouth. The lower prices for farm crops were offset to some extent, however, by heavy marketings and higher prices of livestock and livestock products. Cash income from these sales was 25 per cent greater than a year ago, as against an average gain of 14 per cent for the year to date. As compared with the preceding month seasonal increases were reflected in the receipts from the sale of both crops and livestock. Government payments to farmers in the five states attached ·to this district increased from August to September, but they continued relatively small, amounting to only $686,000. Total farm income during September aggregated $116,000,000 as against $76,000,000 in August, and $106,000,000 in September a year ago. Cash receipts during the first three-quarters of 1937 were well in excess of one-half billion dollars, and were 23 per cent greater than in the corresponding period of 1936. RECEIPTS FROM THE SALE OF PRINCIPAL FARM PRODUCTS (In thousands of dollars) Receipts from: Farm Livestock and liveTotal crops Btock produots receipts Sept., State 1937 Arizona . . ............... $ 1,608 Louisiana .. . ............ 11,731 1,836 Now Moxioo ............. Oklahoma ............... 8,686 Toxas ... . . . ............ 61,105 Sept., 1936 Sept., 1937 $ 1,635 $ 1,515 13,717 1,521 3,386 60,669 2,074 1,722 8,989 16,408 Total five Btatos .. $84,956 $80,927 $30,708 SOURCE: Unitod States Department of Agrioulture • Sept" 1936 $ 1,424 1,723 1,453 8.283 11,658 Sept" 1037 $ 3,113 13,805 3.657 17,675 77,513 Sept., 1936 $ 3,059 15,440 2,974 11,668 72,327 $24,641 $115,663 $105,468 While range conditions in the Eleventh District were reported as "spotted" on November 1, the Department of Agriculture stated that the outlook is generally favorable for livestock producers. In south Texas cattle ranges continued poor, as October rainfall was insufficient to offset the adverse effects of the prolonged drouth. Pastures in the northern Panhandle section of Texas and southern Arizona are also in need of additional moisture. Elsewhere, however, cattle ranges received good rains, and their condition on November 1 was about equal to the average. In the South Plains area of Texas, where a surplus of dry feed is available, the present moisture supply is ample to furnish livestock good winter grazing from small grain fields. In the North Plains section, however, grain fields need additional rainfall to assure winter pasturage. Sheep ranges in Texas evidenced a considerable improvement during October, as a good growth of weeds and winter grasses was started by heavy rains. Livestock MONTHLY BUSINESS REVIEW 4 Cattle held up well during October, despite the spotted condition of ranges. Supplemental feeding was started earlier than usual, with the result that in most areas cattle will go into the winter in good condition. The movement of livestock from dry areas continued heavy, and shipments from all areas exceeded those of a year ago. The condition of sheep and goats in Texas improved somewhat during the month, and they were reported as going into the winter in very good flesh. In New Mexico and Arizona, however, their condition declined slightly, but continued generally good. cows and calves generally showing better resistance. During the first two weeks of November the market was uneven, but demand for the most part remained dull and prices were lower. The hog market continued downward in October, and toward the latter part of the month choice offerings sold for $8.70 per hundredweight, which is the lowest price obtained since May, 1936. Unevenness was the rule in the subsequent two weeks, and on November 15 the price was but slightly higher than the October low. The lamb market was lower but generally steady. The movement of livestock to the Fort Worth market continued in good volume during October despite declines from the preceding month in the receipts of calves, hogs, and sheep. Cattle marketings were 5.6 per cent greater than a month earlier, and as compared with October, 1936, receipts of cattle and calves registered a gain of about 38 per cent, and hogs a gain of 49 per cent. Sheep receipts continued more than twice as great as a year ago. FORT WORTH LIVESTOCK REOEIPTS (Nurober) Oetober Oetober Change over September Change over roonth 1936 year 1937 1937 + 4,546 81,373 61,652 +24,266 Cattle ..•.....••.... . 85,918 - 8,769 62,385 45,212 71,144 +17,173 Calves . ....... . •........ _ 3,095 Movements and Prices A narrow demand characterized the cattle market during the greater part of October, with the result that prices of most classes fell sharply, and in some instances were forced to the lowest levels of the current marketing season. Beef steers and yearlings suffered the greater losses, with butcher ~ho'::'p .. ::: ::::::::::::: 28,968 66,149 19,439 26;773 + 9,529 +29,376 32,963 72,678 COMPARATIVE TOP LIVESTOCK PRICES (Dollal'll per hundredweight) October Oetober Beersteel'll ...................................... . Stocker steers ..... . ............................. . Heirers and yearlings ... . ..••.•....• . ....... ... ... Butcher cows ................. .. ................ . r::::::::::::::::::::::::::::::::::::::::::::: 1937 $12.25 7.60 12.00 7.00 7.65 11 .30 9 .50 1936 $ 8.26 7.00 10.00 5.00 6.35 10.36 8.60 -16,629 Septerober 1937 $12.26 8.60 13.00 7.60 8.50 11 .65 0.75 FINANCE Operations 0/ the Federal Reserve Bank Total earning assets of the Federal Reserve Bank of Dallas rose $631,000 between October 15 and November 15, but they continued $1,165,000 less than a year ago. The gain over the month was due almost entirely to an increase of $827,000 in the holdings of United States Government securities, this amount representing this bank's proportionate share of the additions to the Federal Reserve System's investment account. Discounts for member banks declined $161,000 during the month, and industrial advances were reduced further by $36,000. Member bank reserve balances with the Federal Reserve Bank rose to a new high level of $189,819,000 on October 19, but thereafter these balances declined somewhat and on November 15 were $2,760,000 less than a month earlier. During October excess reserves of member banks in this distriot averaged $4,1,534,,000, which is $3,04.5,000 greater than those in September. Federal Reserve notes in actual circulation on November 15 were $1,584,,000 less than a month earlier and $1,816,000 below those of a year ago. CONDITION OF THE FEDERAL RESERVE BANK (In thousands or dollars) Nov. 15, Nov. 15, Total casb reserves .. .. ......................... .. Discounts ror roember banks ..... ... ...... . .... . . Industrial advances .. . . . ... . . . .... . .. .. ........ . Bill. bought in tho open markct .... . . ...... . ..... . United States Government securities . . . . . . ....... . All other investroents ... . ... ... .. . .. . . ...... . ... . . Total carning asscts ........... . ............ . .... . Member bank reserve dcposits . ...... .. ......... . . . Federal Reserve notes in actual circulation . .. . ...•.. Commitments to make industrial advances ......... . 1937 $190,072 374 1,107 80 99,461 Nono 101,022 185,662 90,343 269 1936 $173,777 39 1,410 87 100,637 14 102,187 162,397 92,159 495 Oct. 15. 1937 $203.317 686 1,143 70 98,634 None 100,391 188.322 91,927 260 Demand for bank credit to finance the seasonal movement of commodities continues to expand at weekly reporting member banks in leading cities of this district. During the four weeks ending November 10 credit extended for commercial, industrial, and agricultural purposes rose further by $4.,4,12,000 to a Condition of Member Banks in Leading Cities total of $158,962,000. With only minor interruptions this group of loans has increased steadily since early last summer. "All other" 'loans, representing largely personal advances, and loans to banks also increased between October 13 and November 10, but these gains were more than offset by declines in other classes of loans. Total advances amounted to $251,331,000 on November 10, which is $4, 368,000 larger than four weeks earlier, and $21,862,000 greater than a year ago. Representing further liquidations of United States Government obligations and a decline in the holdings of other securities, investments of these banks were reduced $1,691,000 between October 13 and November 10, and on the latter date were $13,94,6,000 smaller than a year ago. Total earning assets of these banks on November 10 were $2,677,000 and $7,916,000, respectively, greater than on October 13 this year and November 11 last year. Adjusted demand and United States Government deposits declined $9,815,000 during the four-week period, and interCONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES (In thousands or dollars) Oct. 19, Nov. 11, Nov. 10. Total loans and investments ....... .. . .. . .. . . Total loans .......... . ... . ... . . . .... . . . . .. . Commercial, industrial, and agrioulturalloans. Open market paper ... . ......... . ... . ... .. Loans to brokers and dealers in securities . Other !qans ror purchasing or carrying seOUrltIes. . . . . .. . . . . .. .. . . . . . . .. . . . . . . . Real estate loans. . . . .. .. . . . . .. .. . . . .. . . . . Loans to banks .. . . . . . . .. .. . . . . . . . . . . . All other loans. . ...... . . . .... . . .. . . . . .. .. 1937 $515,426 261,331 158,962 3,543 2,971 15,822 20,692 1,451 47,800 1936 $507,510 229,469 . 2,918 23,275 265 • 1937 $512,749 246,063 154,550 3,849 9,995 16,0~ 21'J59 47,752 186,0~ United States Government direct obliltations. . 185,325 184.674 28.4 Obligations rully guaranteed by U. S. Gov't... 28,260 42,061 61,284 Other securities . . . ........ ... ...... . ...... . 50,510 51,306 114.01 2 Reserves with the Federal Reserve Bank. . . .. . 109,996 163,931 165,070 Balances with domestic banks . . . . . . . . . . . . . 143,691 185,095 398,1~ Demand dOp'osits-adjustedt. . . . . . . . . . . . . . . . 390,961 372,669 126,6 Time depOSIts .... . ....................... 126,754 121,295 18,505 United States Government deposits . .. ...... 16,912 87,786 202,747 Interbank deposits .. .. .. .. .. .. .. . .. .. .. . 186,723 210,787 120 Borrowings rrom the Federal Reserve Bank .. Nono None 'Comparable figures not available. b tInoludes demand deposits other than interbank and United States Government, less cas items reported as on hand or in the process or oolleetion. MONTHLY BUSINESS REVIEW ~ank deposits were reduced $16,024,,000, reflecting a heavy em~nd . for funds at correspondent banks. To offset the ?echne In deposits and the net increase in total loans and Fvestments, these banks reduced their reserves with the ifder~l Reserve Bank $4,,016,000 and withdrew $22,279,000 o thelr balances with domestic banks. Debits to Reflecting more cautious policies of buyIndividual ing and spending, debits to individual Accounts accounts at banks in eighteen cities of I this district again increased somewhat ess than is usual at this season, and the gain over the Chl"responding month of 1936 was considerably smaller than t / average year-to-year comparison for the first ten months ? 1937. Despite the reductions in the rate of increase dur~ng the past two months, however, debits have continued ~~ larger volume than in any corresponding month since $9~9. Total charges to depositors' accounts aggregated 2 2,320,000 in October, which represents an increase of .8 per cent and 3.5 per cent, respectively, above those of a month earlier and a year ago. DEBITS TO INDIVIDUAL ACCOUNTS (In thou.anda of dolla..) Percontage Poreentnge Ootober Ootober ohange ovor September ehange over 1937 1936 year 1037 month Ahilene Au.r ....... . ........ . $ 10,624 $ 10.341 2.7 $ 10.427 1.9 32.251 28,906 B~aulO . . i···· .. '" ..... . +11.0 29.818 8.2 co ...·mon .. . ...•........ 26.454 22.640 +10.8 26.447 .02 nall'cana .............. . 4.018 4.554 -11.8 4,031 - 13.2 258,782 266.366 255,202 - 2.8 +1.4 Elp.. ···•······ ·· ······ 29.053 32.064 25,400 - 0.4 Fort'W' Ii," . .. .. .. ..... . +14 .1 90,190 Galvest"r .......... • . . . 83,412 87,110 8.1 3.5 Bousto on . ... " . . ... .. . . 37.079 34.874 33,506 + 0.3 +10 .5 232,480 228,672 214.824 8.2 +1.7 Port Arth~;""""" . •.. 9.568 Roswell .... . .... '" 8.434 +13.4 9.302 2.9 3,931 3.894 a.260 +19 .4 .0 San Ant~~i~: .. . . .. ... . . . 69.024 67,521 67.472 + 2.2 2.3 ~~~~~~~ort.; . : : : : : : : : : : : : 50,997 48,805 47,894 + 4.5 6.5 Tucso no ... . . . •..... .. 9,055 8.597 8.591 - 5.1 .1 12,375 10,651 10,507 +17.8 +10.2 14,847 14,032 15,195 - 2.3 + 1.5 18,041 - 10.0 16,242 - 3.2 16.775 Wiohiiti 'Fali~ :::::::::::: 15,255 15,845 +17.9 13.441 3.9 + + + + + + + + + + + i;r~~~~::::::: : ::::: : ::: : + +3.5 01 I Totnl. . . . . . . . . $922,320 5890,878 $897.204 ~ nc udes the figures of two banks in Texarkana. Arkan.... located in the Eighth Distriot. more evenly divided between country and reserve city banks. GROSS DEMAND AND TfME DEPOSITS OF MEMBER BANKS (Average of daily figures- in tbousanda of doUars) Combinod Total Reserve City Bnnks Country nnnks Gro~8 demand deposit. Month and YOAr 1936 - Ootober ......... $1,061.297 Novomber . ... . .. 1.097,22i December ..•... . 1.108.410 1037 - January .. ... . ... 1,094,820 February. . . . . . .. 1,079,~58 Maroh .... , ..... 1,051.972 April. . .. . . . . . . .. 1,043,7S0 M.y ............ 1.035.133 June ............ 1,037,336 Jllly ....... . .... 1,053.745 August .......... 1.060,580 September ... . .. . 1,089,891 Ootober. . . . . . . .. 1.110.345 Gro.'IIl Gro.'IIl domand Time Time demand deposits deposit. deposita deposits $200,703 $608.277 $109.023 $453,020 200,783 02i,187 110,105 470.040 200,898 632.243 110.280 470,107 199,824 621,186 109,726 473.040 IOS,305 472.420 199.798 007,432 IOS.501 464,370 199.134 687,690 678,1l0 465,646 1~9.083 108.562 109,344 465.520 200.293 609,013 201,800 573,1l0 110,025 464,225 110,029 469,028 201.893 684,117 203,704 580,477 111.312 474,103 208.581 601.677 114,828 488,214 210.451 013,865 116,181 490.480 Time d.pDl'ita $91.140 90.678 90,618 rO,098 00,H3 90,034 91.121 90,949 91,175 91,264 92,392 93.753 94,270 Acceptance Market A further seasonal expansion was evidenced during October in the volume of acceptances executed by banks in this district. The value of those outstanding on October 31 was $3,516,171, as compared with $3,329,563 on September 30, and $2,136,813 on October 31 last year. While acceptances based on both foreign and domestic transactions shared in the increase over the month, the gain in the former classification accounted for three-fourths of the total. On the other hand, 83 per cent of the value of acceptances outstanding on October 31 was supported by domestic shipment and storage of goods. Savings The aggregate volume of savings deposits Deposits at 115 reporting banks in this district showed little change from SepLember 30 to October 31 this year, whereas in 1936 it evidenced an appreciable increase, with the result that the 1937 gain over a year ago was reduced from 3.3 per cent on September 30 to 2.6 per cent on October 31. On the latter date there were 366,862 savings depositors at these banks having deposits totaling $157,04,0,585. SA VINGS DEPOSITS Ootober 31, 1937 Number of Number of Amount of ----------------------------------------------------Deposits of The combined daily average of gross Member Banles demand and time deposits at member 1 banks in this district rose to the highest ~ve~ on record in October, exceeding the previous high a~ established in December, 1936, by $11,488,000. De~h~ltS .averaged $1,321,000,000 daily during the month, 000c~ is $22,000,000 greater than in September, and $59,at ' 0 larger than in October, 1936: Increased deposits o country banks accounted for 79 per cent of the gain over ctober last year, while the increase over the month was 5 Beaumont .... . ...... . ... DaUas ... . ............ . . EI Paso .... . ... . ....•. .. Fort Worth ... , .......... Galvcston ..........•.... Hou.ton .. ............... Port Arthur . .......•.... San Anlonio ............. Shrove port ........... , . . Waoo .. ... . . ............ Wiohita Falls ...... . . . ... AU others ....•... , ...... Total . .... .. ..... . anks 3 8 2 a 4 10 2 5 3 3 a . 09 savings dopositor. 9,012 89.020 15,414 37,203 18.147 71,883 5.629 22,348 24.314 9,396 6.773 57,123 savings deposits $ 3.008,664 25,779.711 7,989.442 12.964.108 11.103,045 28,293,402 2,441,561 10.870,090 11,107.290 4,951,230 3,383,318 28.427,992 360.802 re~erting Percentage ohange in .avings doposita (rom 00t,31. Sept.30, 1930 1937 + .8 + .2 - 1.0 + .4 +11.3 + .3 +4.8 + .5 + 4.4 - 2.0 + .4 + .3 -1.7 + 5.3 + 0.0 + .3 .0 - 2.7 - 8.5 .03 - 1.3 + .1 + 6.0 + .3 $157,040.585 + 2.6 115 - - .1 --------------------------------------------------------------------------------------------------DIBCOUNT RATES CHARGED BY MEMBER BANKS DURING NOVEMBER, 1937 Prevailing rates ~. Fed:..g~Rustomers on primo commercial paper such as is now oligible for rediscount und~r the . Rate char:ed eserv o Aet ... . . , ........ . ..... . . . .......................................... . n.to On loa"" on Dans to oth~r banks secured by bill. receivable . .. ......... , .............. , .. . in othe seckured by prime .tock oxcbange or other curront ooUaleral (not inoluding loans plaoed D r mar et. through oorrcs/lOndont banks): oha~S'C~~~':::::::::::::::: Rate :":::::::::::::::::::::::::::::::::: : :::::::: :::::::::::: ate on oatU."r commodity paper seoured by warohou•• recoipts•• tc ........... . •. . ... ..... . .. • ______ Dana ••••...•. • .....••.•.. • .•••..•..••.••••..••..••••.•••.•.••••...•.•••.•• ~ EIPIlSO 1~-8 5-0 2-4 4-8 2-6 6-8 6 \ 5-8 6-8 5-8 O. \. Fort Worth 1-7 3-6 ~ " 4-10 4-10 4*8 5-10 Houston Ban Antonio 2-0 3' 5-7 6 I 3- 0 3-7 1*0 0-8 5-0 5-8 5-8 7-8 . Waco 4-0 "i;:.S· 3-8 0-8 INDUSTRY Cottonseed PrOducts of Cottonseed oil Coincident with an active demand for cottonseed products and heavy ginnings of the large 1937 cotton crop, operations mills were maintained at a high level in October, both in Texas and the United States as a whole. The crushings of seed and the output of products were seasonally larger than in September, and exceeded those of a year ago by a wide margin. During the first quarter MONTHLY BUSINESS REVIEW 6 of the current cotton season operations at Texas mills were approximately 60 per cent greater than in the same period last season, and at United States mills they were at record levels, exceeding those of a year ago by about 30 per cent. Stocks of cottonseed products continue to increase season· ally, and while supplies of crude oil and linters on October 31 were considerably larger than a year ago, stocks of cake and meal and hulls were noticeably smaller. Shipments of products continued in much heavier volume than a month ear lier or a year ago. STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS TexllS United Stntes August 1 to October 31 This SOIISon Last season Cottonseed received at' ~ills (tons) ................... 979,482 Cottonseed crusbed (tons).. . . . 602,492 Cottonseed on band Oot. 31 (tOilS) .. . . .. .. . .. . .. .. .. . 399,862 Production of produots: Crudo oil (pounds) . .......... 170,548,631 Cnke nnd moal (tons). . ... . . . 279,081 Hulls (tons). . . . . . . . .. .. . . ... 158,058 Lint<lrs (running bales) ...... 123,156 Stocks on band Oct. 31: Crude oil (pounds). . . . .. . . .. . 26,490,450 Cako and meal (tons). . .. . . . . . 48,963 Hulls (tons) . . . . .. .. . . . ... .. . 41,748 Linters (running bales) .. . . . . 66,883 SOURCE: Bureau of Census. 593,016 378,049 August 1 to Ootober 31 This season LlISt sOIISOn 3.374,986 1,936,899 2,724,374 1,444,693 1,301,607 224,843 1,480,481 105,608,849 172,342 100,457 80,008 573,358,088 854,288 501,594 437,341 430,257,248 644,804 372,214 . 344,289 17,856,641 69,163 50,246 38,671 77,896,414 136,542 103,332 249,531 56,308,247 192,085 118,281 124,373 The domestic consumption of cotton de· clined from September to October, con· trary to the usual trend at this season, and the total was considerabLy below the heavy volume utilized in October, 1936. There were 526,464. bales con· sumed during the month, as compared with 601,837 bales in September, and 651,086 bales in October last year. During the first quarter of the current season consumption totaled 1,732,681 bales, which is 6.6 per cent smaller than in the same period last season. Stocks of raw cotton on hand October 31 at consuming establishments were about the same as a year ago, but the total of 1,418,602 bales repre· sents a seasonal increase of 43 per cent over that of a month earlier. The supply of cotton in public storage and compresses on October 31 was with one exception the largest for that date on record. Textile Milling COTTON CONSUMED AND ON HAND (Dnles) Octohcr ' August 1 to Ootohcr 31 Ootober 1936 TbissOIISon Last season 1937 Cotton.growing states: Cotton consumed .. ... .. . 449,797 Cotton on hand Oot. 31 inConsuming establishments Puhlic storage and com· presses . ... ........... . Unitod Statos: Cotton consumed , . . . . •.• 526,464 Cotton OD band Oct. 31 inConsuming ostablishmoDts Publio storage and com· prossos ............. . . . SOURCE: Burenu of Census. 1,553,316 1,249,847 9,693,248 651,086 1,467,084 1,216,736 546,129 7,986,914 1,?32,681 1,855,867 1,418,602 1,412,603 9,758,419 8,034,194 A slowing down in shipments of cotton to concentration points, despite heavy ginnings, was evidenced during October, due in part to the declining price level, which influenced producers to hold their cotton pending a decision as to whether they would sell or store it for a Government loan. Subsequently, however, large quantities were pledged and loans obtained thereon, spot sales being considerably less than a year ago. The concentration of cotton at Houston and Galveston ordinarily shows a large increase from Sep. tember to October, but this year receipts at these ports were 5 per cent smaller than in the preceding month and 7.4 Cotton Movements per cent less than in October, 1936. On the other hand, eX' ports from these centers continued in good volume, being 65 per cent greater than in September and 2.2 per cent larger than a year ago. At all United States ports receipts and exports of cotton rose considerably less than is usual during October, and in both cases the totals were below those of a year ago. Shipments amounted to 798,921 bales, which is 19 per cent less than the average for this month, and compares with exports totaling 617,444 bales in Septemper, and 861,016 bales in October, 1936. Shipments during the first quarter of the current season, however, were slightly larger than in the corresponding period a year ago. Spot cotton prices declined further during 'the month, and on November 15 the average price for middling, % inch staple, at ten spot markets was 7.79 cents per pound, or about $2.00 per bale under that of a month earlier. Ac· cording to the United States Department of . Agriculture, the major price.depressing influences include, in addition to the large crop prospects in the United States, a large prospective yield in foreign countries, reduced consumption in the Orient, declining unfilled orders and increasing mill stocks of cotton goods, and lower prices of securities and other commodities. The average Government loan price for all grades of cotton through November 11 was 8.48 cents per pound. COTTON MOVEMENTS THROUGH (Bnles) Octohcr 1937 Recoipts .. ............. .. 463,678 Exports . . . ......... . .... . .. . 268,850 Stocks, October 31 THE PORT OF GALVESTON Ootober 1936 527,307 274,457 August 1 to Ootober 31 This season Last season 1,036,664 940,202 425499 473.081 908: 145 828,716 COTTON-GALVESTON STOCK STATEMENT (Dales) October 31, 1937 For Gre;t Dritain .••...... ••.• ••.•.••.. ..... . . . .... .... .. 23,800 For Franco . .. ....... . ....... . .......................... . 8,000 For other roreign port. .................................. .. 43,000 For constwiee ports . ... . .. .. . . . •..• . •......... ............ 2,000 In oompr..... and depots ................................ .. 881,345 Total ..••.......•. •• ••..... .. .......••.•.••••• 908,145 October 31, 1936 3,500 9,000 36,100 4,000 776,116 - 828,716 COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Dales) August 1 to Ootober 31 October Ootober This seMon Last season 1937 1986 1 017 775 706,337 Rcceillts ................ . 415,503 422,420 '401:741 355,447 Exports ... ........ .. .. . .... . 211,733 195,653 832,229 517,216 Stocks, Ootober 31 ...... . . BEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTS- (Dal .. ) August 1 to Ootober 31 This sellSon Last seasen 54 9 Receipts ........... .. ................. . .............. ... . 3,905,291 3,419'3 13 474,614 344, Exports: United Kingdom ... .... .... .. ..... ....... ... . .. . France . ................... .... ........... . .... . 282,779 288.197°6 158,722 72,6 279,450 200,683 266,848 185,11 5 68,673 441,398 105694 80,753 AI other eountrics .. .... . .... .. .... . .... . . ... .. . . ~!r~t~~~~~~~~ ~:::::::::::::::::: ~::::::: ::::::: Totnl exports .............. . ........... . ............... .. Stooks held at all United States ports, October 31 ...... . .... . , 1,636.780 3,229,337 SPOT COTTON PRICE8-(Middling bnsie) (Cents per pound) Ootohcr, 1937 High 8.78 8.48 7.85 8.25 8.25 Low 8.05 7.74 7.14 7.55 7.54 - 1,613.127 2,733,011 Nov. 15. 1937 7.98 7.97 7.23 7.68 7.62 MONTHLY BUSINESS REVIEW Anticipating the customary decline in the demand for crude oil, proration officials reduced production allowables in October, with the result that . daily average output of oil in the Eleventh Dist~ict dechned to a level in close conformity with market reqUIrernents, as stocks showed little change. Production during ~le rnonth averaged 1,645,802 barrels daily, which is 49,450 arr~ls less than the average for September, but 306,575 bar~'els greater than the daily output in October, 1936. WhIle the increase over a year ago continues large, it is bbo ut in line with the increase in demand. Effective Novemer 1, production allowables were again reduced in Texas an~ Louisiana, and during the week ended November 6 dall y average output declined 104. per cent below that in O .ctober. The November allowable for Texas was also consld~rably below the expected demand as estimated by the ~mted. States Bureau of Mines. Despite recent declines in ~ e ~nce of many commodities, the crude oil market has lernamed firm due largely to a sustained demand and a strong control of oil production by proration authorities. Petroleum f . Drilling activity in this district evidenced little change lOrn tpe preceding period during the four weeks ended OIL PRODuc'rION (Barrels) Inorease or doorease from September. 1937 Ootober, 1037 ~:\\TUM ............••... EMI T exna .................. South f~~"""""""'" TexllS COlISt~C. : : : : : : : : : : : : : : Total 4,660,160 7,742,700 18,370,200 8,177,350 6,476,850 Daily Avg. 160,005 249,766 692,878 263,785 208,898 Total + 60,160 + 1,000 +621,650 +130,350 - 65,050 Daily Avg. - 3,028 - 8,262 - 2,374 - 4,448 - 0,132 N. 1:\tal. Texas ............. NO~h~I~O.................. Ulslnnn . .. ...... .. .. 45,425,250 3,237,650 2,366,060 1,465,331 104,440 76,031 +648,000 -197,250 -288,450 -27,244 - 10,057 -12,149 Total Distriol ......... .. . 51,019,860 1,645,802 +162,300 -49,450 OCTOBER DRILUNG RESULTS Number of wells Producent 163 243 275 200 103 f NeJ1\al !exas.. .. .. ........ ... Nortb ~~~~~~.. ... .. .... .. .. .. . ;~Iober lotals a................. 1,243 58 46 Gas wolls 16 1 1 9 6 Fat!urcs 66 49 24 63 24 Initial production (barrols daily) 60,268 265,422 1,317,343 72,400 4P,807 984 49 32 Completions North TexM 245 lVest T ........... ....... .. ElISl Texas ... ..... ............ . 293 Soutb Xl•8 .................... . 300 272 ToxM C~~i~(.:::::::::::::::::: 13S 33 2 8 226 7 6 1,755,240 . 60,531 17,363 239 233 1,833,134 1,725,410 distriot 1,347 1065 43 PtemOOr tO~ls, distri'ot' . :: : : : : : 1,341 1:058 60 'Se°otoOOr figures ropresenl four weeks onded Ootober 23, 1937. t Ptembor figures ropresonl four weoks ended September 25, 1937. 7 October 23, but productivity of successful wells was 5.5 per cent greater. CRUDE OIL PRICES (Price per barrell October 31, 1937 $1.20 Norlb nnd west oentral TOxM ....... . .................... .. 1.27 Enst central Tex .............. ............................ . 1.41 TexM Gulf ooast ....................................... .. 1.08 West Texns-Now Moxioo .......... .......... ........... .. 1.22 North LOuIsiana .... ................. .............. ...... . NOTE: Prioes quotod npply to oil 40 gravity and above. ·Prioes for a comparable grade of oil not available. SOURCE: "Tho Oil Weekly", Houstou, Toxns. October 31, 1936 $1.08 1.15 ° ° 1.10 An increase in the value of construction contracts awarded for non-residential building accounted for a substantial gain in construction activity in this district during October. Total contracts awarded were valued at $11,771,000, which represents a seasonal increase of 28 per cent over that of a month earlier, and a gain of 29.8 per cent over the October, 1936, volume. Public works, utility, and other non-residential construction increased 50 per cent from September to October, and the total of $8,397,000 was two-thirds larger than in the same month last year. Residential building declined 5.9 per cent from September, and was 15.8 per cent smaller than in October a year ago. Building On the other hand, the valuation of building permits issued at fourteen principal cities in this district declined 31.9 per cent in October, and was 26.9 per cent smaller than a year ago. While the recession from September to October was contrary to the usual trend at that season, it was largely due to a material decline in the value of permits issued at Galveston, as other cities reflected an average increase of 13.2 per cent. The decline from October, 1936, however, was participated in by all but four of the reporting cities. A total of $3,985,273 represents the valuation of 2,476 permits issued during the month. VALUE OF CONSTRUCTroN CONTRACTS AWARDED (In thousands of dollant) Septembor Janunry 1 to Ootobor 31 October October 1937 1936 1037 1937 1936 $ 0,196 S 117,626 S 109.601 Eloventh Distriot-total.. . $ 11,771 $ 0,069 41,520 33,810 3,585 Residential. " .. .. . . . . . 3.374 4,009 6,611 76.106 75,791 All other. . .. . .. . .. . .. . 8,397 5,060 207,072 2,547,045 2,260,030 United Stateso-lotal .... 202,081 225,830 65,590 809,065 667,993 Rc.,idontial. . . . . . . . . . . . 66,485 70,736 141,482 1,737,080 1,692.037 All otbor. . . . . .. ... . ... 136,506 146,103 ·37 states oaat of th. Rooky Mountains. SOURCE: F. W. Dodge Corporation. ------------------------------------------------BUILDING PERMITS October, 1937 Amarillo Austin . .. ......... n••um ·0· j . ....... ... 8h·' .:...... . Co rr,U. D.I as rl. tl. . .... . 1':1 I'IISO' ............ 1<'o.t \V~rih" '''''''' O.lvest ...... .... llous to~n ........... 1'ort Arti; ...... . . . .. -- ~.n Anto~~" ""'" brOVoport ......... W,oo . " ....... lViohii~ 'ralia: : : : : : : : Toto! No. Valuation 49 $ 122,370 211 343,366 151 56,244 130 180,195 543 650,814 66 383,241 164 387,161 157 90,366 399 1,144,990 148 64,837 270 259,472 132 228,177 34 63,763 22 10,287 ...... . 2,476 Poroenlngo change valuation over year No. Valuation - 77 .6 32 $ 543,601 221,696 + 54.9 147 - 47.2 127 106,447 - 27.5 142 248,505 + 42.0 469 458,247 +270.5 77 103,450 - 25.9 251 522,533 128 . 6.6 06,690 - 50.1 460 2,296,387 - 18 .6 181 79.633 428,936 - 39.5 284 - 14 .0 161 265,180 42 60,320 + 6.7 21 - 39.0 16,852 October, 1036 ----$3,085,273 2,522 - $5,448,486 - 26.0 Porcontnge chonllo voluntion over month No. Valuation - 45.1 32 $ 222,782 + 63.1 210,468 143 4.2 58,687 173 - 21.2 228,685 168 + 29.3 503,460 436 +216.0 121,271 72 + 34.4 288,026 165 - 06 .3 2,413,087 132 + 13.4 417 1,000,430 + 23.7 52,434 126 + 15 .0 225,608 261 7.5 246,581 122 - 73 .0 236,313 49 - 71.0 35,493 24 September. 1937 - - 2,320 '5,852,325 - 31.9 No. 350 1,599 1,483 1.402 4,487 841 1,813 1,114 4.002 1,627 2,676 1,378 469 179 Janunry 1 10 October 31 Porocntage ohange 1936 1937 valuo.tioD over period Valuation No. Valuation $ 1,055,D78 $ 1,047,296 309 .7 3,920,401 3,398,656 1,612 - 13 .3 947,048 1,186 970.870 2.5 2,372,870 2.010,317 1,127 + 22.6 8,692,450 - 27 .1 6,338,888 4,939 643 808,850 1,340,546 + ·65.7 7,476,622 6,124,423 1,796 - 18.1 1,440,405 3,307,969 1,109 +129.7 16,040,005 3,866 15,814,432 + 1.4 813,030 .6 817,247 1,405 + 3,770.980 3,036,149 2,496 4.4 2,151,394 20 .7 2,507,308 1,323 371 612,166 1,083,297 + 77.0 187 337,978 267,036 - 21.0 23,320 " 50,156,185 - t 22,369 $50,237,544 .2 MONTHLY BUSINESS REVIEW 8 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the F ederal Reserve System ) ItIDUSTRIAl. PRODUCTION "Re"" '40 ,UttMT .40 •30 .~o J\. .20 \ 110 100 120 ~ ~ \ 00 A \ I" v 'I\. 00 t - - ~ 10 I \ \I'J eo L /'11 110 1 100 00 80 V 70 GO so 00 1120, I~ 1~32 leJl 1m 1934 1 9~ 19)(; 1937 Index of physical volume of production. adiusted for seaso na l variation. 1923-1926 average 100. By months. January. 1929. to October. 1987. = .....," FACTORY EMPLOYMENT '111 1fT 120 " .0 •'0 110 100 r\ ,./\ [\ 00 70 00 I /\. ,.../ 1830 00 1$31 eo 70 ~ eo so IH9 , ~ " '\ V eo 1&.32 li33 1834 tm so I8JO 04U7 Index of number employed. adiusted for seasonal variation. 1923-1926 average 100. By months. Janua ry. 1929. to October. 1937. = ... ,.., WHOLESALE PRICES uo '00 OIMt CommodIties eo ~,k. 70 ,",,,,,, VY\ 0 I 00 I 00 eo "lIIe,I..10 , I PRODUCTION AND EMPLOYMENT In October the Board's seasonally adjusted index of industrial production was 103 per cent of the 1923-1925 average as compared with 111 per cent in September and an average of 116 per cent in the first eight months of this year. There was a marked curtailment of activity in the durable goods industries. Output of steel ingots, which had shown a steady decline since August, was at an average rate of 59 per cent of capacity in October and by the third week in November the ra~e had declined to 36 pel' cent. Automobile production increased considerably In October as most manufacturers began assembly of 1938 model cars. In the first three weeks of November output of automobiles showed little change from the level reached at the end of October, with assemblies by one leading manufacturer continuing in exceptionally small volume. Production of lumber and of plate glas S declined further in October. In the non-durable goods industries, where output h~d been declining since the spring of this year, there was a further decrease In October. Cotton consumption showed a sharp reduction and activity at woolen mills and shoe factories continued to decline. There was an increase in output at sugar refineries, where activity had been at a low level in September. In most other lines changes in output were largely seasonal. Mineral production continu~d at about the level reached at the close of 1936 and maintained throughout t}Us year. Value of construction contracts awarded in October and the first half of November was smaller than in the preceding six weeks, according to figures .ofl the F. W. Dodge Corporation. The decline was chiefly in private non-resident1l:L construction. Factory employment declined substantially in October and payrolls showed little change, although an increase is usual at this season. Declines in the numbed employed were reported by factories producing steel, machinery, lumber, an textiles, and in many smaller industries. There was a seasonal increase in emploYment at automobile factories. Employment and payrolls increased seasonally at mines and at establishments engaged in wholesale and retail trade. DISTRIBUTION .A 00 .t$£:'.. "J'r!. ~\ eo Sales at department stores and mail-order sales increased seasonally in October. Throughout the year sales at department stores have been sustained, with seasonal fluctuations, and the Board's adjusted index of these sales has shown little change. 70 Freight-car loadings declined in October and the first half of November, reflecting smaller shipments of forest products, ore, and miscellaneous freight. "'V ~ 60 y/"y., ~ Volume of industrial production showed a further sharp decrease in October and the first three weeks of November, and there was a reduction in employment. Commodity prices continued to decline. Distribution of commodities to consumers was maintained at the level of other recent months . 60 Form F,odUd, 40 I IDlG 1832 1~7 Indexes compiled by the United States Bureau of Labor Statistics. 1926 100. By weeks. 1932 to date. Latest figure is for week ending November 20. 1987. = COMMODITY PRICES Prices of industrial materials, particularly non-ferrous metals, steel scrllP rubber, and hides, declined further from the middle of October to the third we.ek of November, and there were some decreases in the prices of finished industrIal products. Livestock and meat prices declined substantially and coffee pri<:eS dropped sharply following the announcement by Brazil of modification of Its control policy. BANK CREDIT During the first half of November the Federal Reserve banks purcha~ed $28.525,000 of United States Government securities, in accordance with the polICY adopted in September to provide additional reserves for meeting seasonal currencY and other requirements. From the middle of October to November 17, excess reserves of member banks increased from about $1,000,000,000 to $1,100,000,00.0' reflecting the Federal Reserve security purchases and a considerable decline. IJI required reserves at member banks in New York City, caused partly by a reductJO Jl in demand deposits arising from a liquidation of brokers' loans. Loans to brokers and dealers reported by banks in leading cities declined bY $250,000,000 during the four weeks ending November 17. Commercial 10aJlS; W ednesday figure s for reporting member banks in 101 leading cities. September 6. 1984. to November 17. 1937. following a steady increase for several months, declined after the middle 0d October. Member banks in New York City increased their holdings of Unite States Government securities by over $150,000,000 while banks outside New Yor~ City showed a further reduction. Deposits continued to show moderate reductio Jls,
