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Federal Reserve Banl{. of Dallas
This summary of agricultural and commercial conditions In
the Eleventh Federal Reserve Dlstrlct Is Issued In the beUef that
a concise review of trade will be of Interest to our member
banits, business men of the district and friends of the Federal
Reserve System.
The Information given is obtained by the Federal Reserve
Agent from various sources throughout the district, and in our
opinion lhe same is reliable.
Those desiring the letter furnished them regularly will receive It without charge upon application.

DALLAS, DECEMBER, 1918
The successful termination of the war has created
optimism everywhere, as evidenced by the various
peace demonstrations, parades and similar gatherings throughout this District. At the same time
the sudden end to hostilities brings us face to face
with a period of readj ustment and industrial
changes, and presents economic problems which, at
the moment, appear almost as difficult of solution
as when the District changed from a peace to a war
hasis early in 1917. We do not doubt that as these
readjustments take place conditions will continue
generally satisfactory, but any definite prediction
Or statement for the distant future wou ld be purely
guess-work.
The influenza situation has greatly improved and restrictions as to crowds and amusement places have
been raised. More seasonable Fall weather and fine
rains over practically every section of the District
have greatly improved the general business outlook
since our November letter, and in the larger cities
especially trade is active. Retail distribution, after
a very dull period in OctoGer, is again normal. The
movement of merchandise has been accelerated by
the campaign for early Christmas shopping and the
necessity for the prompt buying of presents for the
boys in the Expeditionary Force. Now that restrictions on Christmas shopping have be-en lifted, the
hOliday season should be one of unusual activity.
The operations of manufacturers are restricted only
by the labor situation, and delivery of raw material.
Collections are slow.
Outside of the seasonal preparation for next year's
crops and the marketing of
AGRICULTURE commodities produced in 1917,
farming conditions are practically unchanged during the past month. Very heavy

and general rains, in many localities averaging from
two to six inches, have fallen within the past thirty
days, which with lighter rains in the early Fall,
have insured exc·ellent range conditions in the west
and southwest sections and give promise of a good
wheat crop in the northwest and "Panhandle" sections, where an increased acreage, conservatively
estimated at 20 per cent., has been sown. The crop
is looking especially fine at this writing; in fact,
the general rains have created a much better feeling among fanners and stockmen . We are hopeful
that these conditions may continue.
The Fall crop of sweet potatoes, peanuts al~d similar
commodities is now being marketed at good prices
and the returns from the crops are being felt in
trade channels. Over 50 cars of sweet potatoes
have already been shipped from Jasper County
alone, and 20,000 bushels are in storage at the curing plants at Jasper and Kirbyville. The Government crop report for October estimates the Texas
sweet potato yield at 4,900,000 bushels, and the production of peanuts at 15,900,000 bushels.
The pinto bean crop of New Mexico is disappointing, both in yield and quality, and the production
is less than two-thirds of that expected. Shipmellts
of ribbon cane syrup are now being made from east
Texas, and while the crop is short on account of
drouth conditions, the grade is exc-el1ent and high
prices are being received.
Final tabulation of subscriptions to the Fourth Liberty Loan show a total of approxiBANKING
mately $145,000,000, or an over-subscription of 15 per cent. Considering the unfavorabl·e conditions obtaining in the
West on account of the drouth, we think the showing is an excellent one. It is only added evidence

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

of the unselfish support and patriotism of th e banking institutions and peopl'e of the Eleventh District.
Too much praise cannot be g iven the banks fo r their
efforts in making the loa n a succ'ess.
The financial situation is quite as active as thirty
days ago. The most ser ious problem w hich banks
in this Di strict now face is that of moving the cotton crop. There is littl e prospect of immediate relief in this r egard. The banks in the interior have
made h eavy advances on cotton purchased on a high
market, and on accou nt of the present unsettll'! d conditions, and lack of transportation facilities, there
are very few sales and the general disposition is to
hold for hi gher prices, to avoid heavy loss. With
such a large part of their assets tied up in cotton
t he banks find it extremely difficult to maintain their
r es'erves.
T h ere continues an unprecedented demand for
funds . Interest rates are firm to steady, at 6 to 8
per cent for customer s' pap'er. The rediscount facilities of this bank are bei ng freely sought, and
while our total loans a re slig htly decreased over a
month ago, attrib utab le mainly to the liquidation
of member banks' promissory notes secured by
Tr-easury certificates, the amount of p ap er rediscounted is unchanged. Th e report of condition
rendered on the call of November 1st sh ow slightly
increased deposits a nd decreased loans. At the
same time, the seasonal liquidating period has not
yet been developed on account of the light movement of cotton . In a circular issued under date of
November 29th, the attention of memb er banks
is di1"ected to the necessity of conserving their resources and carefully scrutinizing n ew cr ed its. This
seems especially imp ortant in the reconstruction
days to come.
Clearings at the principal cities of the district in
October show an increase of 2.3 per cent. over the'
same month of 1917. For the first ten months of thc
present year, as compared w ith 1917, an increase
of 21.3 per c'cnt. is shown. The figures in detail
follow:
OCTOBER
Inc.
1917
Aust.in .............. :'...............$ 13,380,064
Beaumont ........................
5,644,638
Dall as ................................ 116,000,000
EI Paso ............................ 17,639,674
Ft . Worth ........................ 78,378,536
Galves ton ........................ 32,895,920
Honston .......................... 84,977,974
Shreveport ...................... 16,884,027

1918
$ 11,003,491
6,383,789
130,964,281
22,257,256
69,953,5 16
34,081,858
83,745,529
15,579,'071

Total ............................$365,800,833
$373,968,791
Incrcase-$8,167,958-2.3%
TEN MONTHS
1917
Austin ..............................$143,427,535
Beaumont ........................ 47,638,429
Dallas ..............._........ _... 595,469,001
El Paso ............................ 171,8""2,335
Ft. Worlh ........................ 516,060,108
Ga lveston ........................ 219,891,147
Houston .......................... 548,368,400
Shreveport ...................... 80,907,115

1918
$161,244,925
56,194,122
858,201,992
185,005,513
576,620,488
226,167,187
650,964,506
103,778,222

'fotal ........................$2, 323,604,'070 $2,818,176,955
Increase-$494,5n,885-21.3%

or
Dec.
- 17.8
13.1
12.9
26.2
-10.7
3.6
- 1.4
7.7

Inc.
or
Dec.
11.8
17.9
44.1
8.2
11.7
2.8
18.7
28,3

Building p ermits iss ued at the principal cities of th e
di strict in October show a decrease
BUILDING of 164 in number, and $314,528 in
valuation-or 38.2%-over the same
month of 1917. As compared with October, 1916,
the decrease is over 50 per cent.
Detailed figures follow:
1917
No . Valuation.
$ 22,912
Austin ................... ........ 11
105,855
Beaumon t .................... 71
68,120
Dallas ............................ 40
92,372
E I Paso ....................... 124
11,629
Galveston .................... 341
162, 100
Ho uston ........................ 228
239,035
San Anton io ................ 224
121.323
Shreveport .................... 59

1918
No . Valuation.
4
$ 28,200
53
48,231
23
14,550
74
16,396
373
21,071
136
40,412
227
329,938
44
10,020

934
$508,818
Tolal ........................ 1,098
$823,346
Decrease in llumb er-164
Decrease in valuation-$314,528-38.2%

\Vith the end of the war it is anticipated that the
building industry wi ll soon be very active. A much
better feeling prevails among the trade, both with
m anufacturer s of materials and constructiun firms,
and it is expected that operations will be rapidly
restored to normal now that the Government regulations have been removed. Projects which h ave
been h eld up during the war will to a large ext ent
be I'eleased. Space is in g reat demand both fo r
dwelling and commercial pu rposes, and the trade
reports that there is ev idence of an imm ediate renewal of operations limited in extent on ly by t he
ready supply of material and labor.
Pending the resumption of various manufacturing
plants to peace time industry, t he reserve stock of
building materials will prove no more than adequate
for the increasing demand. Man ufact ur ers of lumber hesitate to predict the developments of the immediate future. The pl"esent effect of the end of the
war is that a large number of Government orders
are being cance1led or h eld up, and as one manufacturer reports, "the mills are entirely up in the
air as to what the r esult w ill be."
T he stock of lumber on h and at the mi lls is low
and badly b roken, and wi th the present labor shortage and oth er contributing factors, there is no immediate prospect for early replenishment. The cancellation of building restrictions w ill have the effect
of creating a sufficient demand to use such lumber
as may be available for several months to come, or
until such time as our allies and the European coun tries come into the market for the enormous amount
of lumber they will unquestionably need in the r econstruction period to follow .
Exports from the Galveston di strict in Septemberthe latest figures available-aggreEXPORTS
gated $26,410,000; an increase of
40.7 per cent. over the same month
of 1917 w h en the value of such exports was
$18,765,000.

The October record of fai lures in the Eleventh District shows a decrease of 22 in numFAILURES ber, but a slight increase in amount
of liabilities, over the same month
of 1917. The figures are:
No.
52

1917
1918
Liabilities
No.
Liabilities
$392,822
30
$410,202
Decrease in number-22
Increase in Liabilities-$17,380

It is too early to make any statement as to the effect
the end of the war will have on labor
LABOR
conditions. It seems to be the general
impression, however, that an immediate
improvement will be the result, as with the rapid
demobilization of troops and their return to civil
life, the scarcity of all classes of labor should be
greatly reduced. Owing to the fact that many of
OUr large enterprises will have to be converted fr0111
a war to peace basis, the labor turn-over will be
necessarily large and no doubt will result in considerable economic loss. We believe, however, this
will be only temporary and confiel·ently expect a
rapiel recovery to normal labor conditions.
The area of this district devoted to the cattle 111elustry is so extensive that reLIVE STOCK
ports in hand as to live stock
conditions at present ape quite at
variance. We believe, on the whole, that the cattle
industry is much improved over thirty days ago, as
the heavy rai ns recently have helped grazing.
In the 1\ marillo section our corresponelent reports
that cattle arc in good condition and will go into
Winter in fine flesh; also that there is a reasonable
amount of grass to tide them over. Reports from
other sections in t he Panhandle are that cattle are
being moved to other ranges or shipped to market
with very unsati sfactory results. Our correspondent
at Eagle Pass advises that cattle conditions are better than for the past eighteen months; that the rain
has filled water tanks and there will be sufficient
Water to carry the stock through the Winter. In
the Beeville section there is an increased number
of inquiries for steers of all ages and a fair demand
for cows and stockers, at prices ranging fr0111 $65.00
to $85.00, plus freight .
In. Arizona range conditions are bad, and cattle are
bClng moved to other territory for feed.

Post office receipts at the principal cities of t he
district show an increase of
POST OFFICE
24.3 per cent. in October over
RECEIPTS
the same month of 1917. Detailed figures follow :
1917
Austin ................................................$ 18,968
Beaul110nt ........................................ 12,()03
Dallas .......................................... :..... 147,772
1':1 Paso ............................................ 29,333
Port Worth ...................................... 55,231
Galveston .......................................... 14,630
Houston ................ ................... ....... 70,351
San Antonio .................................... 75,609
Sit rcvcport ........................................ 27,329
v\Taco ................... _............................. 31,619
Total ............................................$482,845
Increasc-$117,145-24.3%

1918
$ 25,192
15,354
179,305
32,688
70,001
18,161
92,J95
100,303
28,927
37,464
$599,990

'Wholesal ers of dry goods report very Ii ttle buying
among the country trade at the
WHOLESALE present time on account of the
TRADE
long period of warm weather and
the dul l business occasioned by
the inAuenza epidemic. vVholesalers and jobbers
also advise that the sudden termination of the war,
and the many adjustments in their line which wi ll
be necessary as the result, has caused a
condition of unsettlement, and they are "marking time" pending developments. They have large
stocks of high priced goods on hand, and until marl et conditions hecome more settled and some definite basis can be formed as to future prices, buying
wi ll necessarily be curtailed and restricted to actual
requirements. Some have alr-eady cancelled orders
for future delivery. The buying' season for Spring
and Fall of 1919 will soon be here, but on account
of the conditions mentioned above there is littl e activity.
Large mail order houses report a temporary lull in
husiness and attribute it to the anticipation of greatly reduced prices of merchandise. Their volume of
holiday trade, however, has been unusually heavy,
and this class of merchandise has been in good demand.
The wholesale grocery trade has been very acti\'e
in the past few weeks. This activity, however, is
attributable mainly to delivery of stocks purchased
in the Spring and Summer. 'there is a very strong
t ndency 011 the part of the retailer to withhold purchases and to buy in limited quantities, in anticipation of a drop in prices with the end of the war.
\ Vho Jesalcrs are encouraging this practice, in an effort to prevent hoarding, but report that there is
probably littl e basis for exp cting any material decline in grocery prices in the near future, as with
the extraordinary demand for food, which it now
develops will be greatly increased for the devastated
European countries, it is not thought there will be
any substantial decline, but rath·er an increase. Collections in the trade are reported as unusually good .

STATEMENT OF CONDITION OF THE

FEDERAL RESERVE BANK OF DALLAS
At the Close of Business NOVEMBER 29, 1918.

RESOURCES
Gold
Gold
Gold
Gold
Gold

coin and certificates i~ vault ............................................... ..................................................................................... . $ 5,666,512.50
6,514, 153.66
settlement fund ............................................................................................................................................................. .
2,153,150.00
redemption fund .......................................................................................................................................................... .
204,010.61
held with foreign agencies ......................................................................................................................................... .
with Agent for retirement of F. R. Notes ......................................................................................................... .. 22,500,095.00

Total ............... _................................................................................................................................................................. $37,037,921.77
1,299,981.25

Legal tender notes, silver, etc ....................... ··.. ······· .. ····· .. ··· .... ·..· ..................................................................................... .

Total ........ _......... ---_.....-.-.......__ ........................................................... _- ................................. __ ..-_ .....-.--.-..........................
5% redemption fund-F. R. Bank N otes .................. ···· .... ·· .. ·· ..........................................................................................
Bills discounted-m embel's ........._................................................................................................................................... .
Bills bought in open ma rket .......................................... ·· .. ·····.. ·· ..................................................................................... .

$38,337,903.02
226,900.00
48,972,698. 15
4,025:000.00

Total Bills on Hand ....................................................................................................................................................... $52,997,698.15
Investments-U. S. Bonds ......................................... ······.. ·····.. ·· ... ............................................. :....................................... . 4,000,050.00
725,000.00
One year Treasury Notes .................................... .. ··· ...... ·· ........ ·· .... ·· .... ·· ................................................. .
1,675 ,000.00
Special Cert. of Ind. to secure F . R. Bank Notes ....................... ·· ...... ··· .... ··· .... ···· .. ·.. ··· .. ····· .. ·................................. ..
Total earning assets .................................................................................................................................................... $59,397,748.15
4,360,669.41
7,927,465. 12
3,407,970.06

Federal Reserve Banks-Transfers Bought-(net) ................................................................................................. ..
Ch ecks and drafts in process of collection ...................................... ···· .. ·.... ·.... ··· .. ··· ....................................................... .
All other resources ........................·.. ············ .. ·········· ............................................................................................................. .

Total Resources ........................................................................ .................................................................................... $113,658,655.76

LIABILITIES
Capital paid in ........................ ·····.. ··· .... ·· .... ··.. ············· ...................... ..................................................................................... . $ 3,141,450.00
3,989,502.72
Government deposits ........................................................................................................................................................... .
Du e to member banks' reserve account ..................... ···· .. ····· .. ······.. ······ ........................................................................... . 31,705,480.17
8,901,735.19
Deferred credits, account checks and drafts in process of collection .............................................................. ..
59,104,685.00
Federal Reserve Notes in circulation ........................... ·······.. ·· ...................................................................................... .
987,544.46
Due to F. R. Banks (n et) ............................ ·.. ·· .. · ........................... .................................................................................... ..
2,586,150.00
F. R. Bank N ote Cil'culalion ....................... ·· .. ·· .. ·· .. ·····.... ·.... ·.... ···· .......................................................................... ......... .
1,238,000.00
Federal Reserve B~mk No tes (secured by U. S. Bond s) ................................ ·.. ·.. ·.. ·.. ·· .... ·.. ·.. ·.. ··· .... ·.. ··.................. .
2,004,108.22
All other liabilities ....................... ·.. ······ .. ···· .. ·.. ·...... ···· ...........................................................................................................
Total Liabilities ....................................................................... ................................................................................... $113,658,655.76
OFFICERS
W. F. RAMSEY,
Federal Reserve Agent.

J. W. HOOPES,
Deputy Governor.
CHARLES C. HALL,
Ass't Federal Reserve Agent.

R. L. VAN ZANDT,
Governor.
LYNN P. TALLEY,
Cashier.

R. R. GILBERT,
Assistant Cashier.

R. BUCKNER COLEMAN,
Assistant Cashier.

PAUL G. TAYLOR,
Assistant Cashier.

FRED HARRIS,
Assistant Cashier.