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Federal Reserve Banli. of Dallas
This summary of agricultural and commercial conditions In
the Eleventh Federal Reserve District Is Issued In the belief that
a concise review of trade will be ot Interest to our member
banks, business men ot the district and friends ot the Federal
Reserve System.
The Intormatlon given Is obtained by the Federal Reserve
Agent from various sources throughout the district, and In our
opinion the same Is reliable.
Those desiring the letter turnlshed them regularly wl1l receive It without charge upon application.
DALLAS, DECEMBER, 1919.
Improved weather conditions throughout the district
have had a very healthy eff.ect on general business in
the past month and the volume now being transacted greatly exceeds that of thirty days ago. For
Some sixty days every section of the district has
Su ffered from excessi v'e rai I1S and while the effects
ere more seriously fel t in the rural communities,
In retarding trade with the country merchants and
preventing farm work of every character, the larger
cities have likewise- felt the inactivity, especially in
bUilding operations and various construction lines
which are dependent upon the climate. Cold weather has been later than usual and the movement of
winter stocks of merchandise have not greatly
fluctuated during the month, a comparison as of
Nove~1ber 15th, with October 15th, showing an ad:'ance.111 the principal foodstuffs, of only 3.3%. There
1~ eVIdence of advance Holiday trade.
Heavy
liquidations are noticeable from the marketing of
~otton, collections in all lines are fair to good, except
111 Southwest Texas, where the Sept'e mber floods
~emoralized business, and, summarized, the outlook
IS quite satisfactory.
:v
Agricultural conditions in this district are in a somewhat uncertain state. An unAGRICULTURE usually large crop of wh<!at was
grown. Due to unprecedented
and continued rainfall, a large amount of this wheat
has not yet been threshed and some of it never will
be. Much of the wheat grown in this district has
been damaged by rain and exposure and its movel11ent to market greatly delayed. These same
Weather conditions have to an unusual and regrettable extent prevented the planting of wheat.
The same conditions have injured and adversely affected corn, hay and all forage crops and have destroyed considerable cotton and lowered the grade
and diminished the value of much more. However,
after making a due allowance for all such damage,
both the volume and value of wheat, oats, corn and
forage crops greatly exceeds that of any year in the
history of this district.
The peanut and potato crops have suffered very
greatly and the damage in the aggregate will run
.to very heavy figures .
The yield of cotton in the district cannot be very
safely or closely estimated. The Texas crop, on
October 25th, according to the Government's special
report, was estimated at 46%, a decrease of 6%
from the estimate of September 25th, and a decrease
of 15% from the ten-year average. Based on the
condition of September 25th, the Texas crop is estimated at 2,950,000 bales. A singular development
is the raising of a fairly large and very profitable
cotton crop in the neighborhood of Roswell and
Carlsbad, New Mexico, at an elevation of over 3,000
feet above the sea level. The crop in Western
Texas is very fine, while the crop in Southern Texas
is poor. If the good weather conditions, now prevailing, continue for thirty or forty days the crop
in Texas may run to, or slightly above, 3,000,000
bales, although considering all factors, a safer estimate would lower the figures. On the whole, the
cotton crop of this district will have the largest
money value ever realized.
The financial situation continues on a very satisfactory basis. Outstanding changes
BANKING
during the month have b.een the
heavy liquidation from the marketing' of cotton and other crops and the general retirement of obligations and the very substantial growth
in deposits. Many member banks which a year ago
were greatly extended and had large amounts of bills
payable, have reduced their loans with the marketing of crops and are now enjoying deposits of unprecedented totals, as disclosed by the called reports
of November 17th.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
The abnormal credit situation naturally makes a
heavy demand with banks but they have been quite
able to meet the situation, and, in fact, have a surplus of funds, seeking investments. As a result
purchases of Treasury certificates and commercial
paper have been very heavy. With this bank the
demand is very n'luch lig hter than thirty days ago
as indicated by a decrease of $13,797,000 in total
bills di scounted and bought for the thirty-day period
ending November 21 st. During the same time F ederal Reserve note circulation increased som e
$6,300,000 and m{!mb er banks' reserves increased
some $12,000,000. In fact, this institution finds itself in an easier position than for severa l months
past.
Clearing at the principal cities in October and the
first ten months of the year, as compared with th e
sa me period of 1918, were as follows:
OCTOB E R
1919
1918
$
8,804.196
5.867,773
204.861,622
29.460,051
92.198.617
47.895,942
152.255.751
20.003.797
21.777.600
Austin .......................... .... $ 11,003,491
Beaumont ......................
6,383,789
Dallas .............................. 130,964,282
EI Paso ............................ 22,257,256
Fort Worth .................. 69,953,517
Galveston ........................ 34,081,858
Houston ........................ 83,745,929
Shreveport -'................... 15,579,072
Waco .............................. 13,863,868
Inc. or
Dec.
0/0
-20.0
- 8.1
56.4
32.4
31.8
40.5
81.8
28.4
57.l
$583.125.349
50.3
- D ecreas e
Total .......................... $387,832,666
TEN MONTHS.
1919
1918
Austin .............................. $160,972,082
Beaumont ................ ...... 56,194,122
Dallas ........ ...................... 858,201,992
EI Paso .......................... 185,005,513
Fort Worth ........ ........ .... 576,620,429
Galveston ................ ........ 226,167,187
Houston ........................ 650,964.906
Shreveport .................... 105.885.995
Waco ................................ 116,454,538
Total ........................$2.936.466,764
$195,292.439
57,435.708
1.247.988.632
246.915.155
696,731,909
298,266,377
828,107,528
131,861,758
114,400,106
Inc. or
Dec.
0/0
21.3
2.2
45.4
33.2
20.8
31.9
27.2
24.5
-1.8
$3,816,999,612
29.9
-D ecrease
A comparison of the principal items of assets and
liabilities on member banks in the reserve cities and
Shreveport on the dates shown, follows:
Number of member banks .................... 43
S ept. 12
U. S. Bonds to secure circulatiol1 .... $18,923
Other U. S. Bonds, including
Liberty Bonds ............................. _..... 20,320
U. S. Victory Notes .............................. 5.203
U. S. Certificates of Indebtedness .... 36,146
43
42
Oct. 10 Nov. 7
$19,203 $19,323
Total U. S. Securities ............ .......... $80,592
Loans secured by U. S. Bonds............ 7,779
All other loans and investments ....... .l63,636
Reserve balance with F. R. Bank ........ 21,396
Cash in vaulL .............. ............................ 10,506
Net demand deposits .... ........................ 192,565
Time deposits ........................................ 30.660
Governmen t deposits .......................... 24,766
$75,235
7,009
181,282
23.571
10,247
202.153
31.224
8,348
19,515 20,489
4,898
4,427
31.619 15,642
$59.881
6,348
200,233
24.530
10,935
217,586
31.920
5,215
Building operations which have for many weeks
continued in unprecedented volume,
BUILDING were somewhat retarded during the
month by protracted wet weather.
As this is written, however, the situation is improving and there is renewed activity in this line. There
are many complaints of inadequate and inefficient
labor and contractors advise th at thi s is greatly interferin g with their work.
The statistical table following shows the extent of
ope rations in the district and the recovery from the
dullness which prevailed a year ago, on account of
th e war. Indications are that building during the
winter months will be as active as weather conditions, labor situation and the supply of material will
permit. Disagr eements over the employment of
union and non-union laborers have seriously affect ed the cons ummation of building projects. Regardless of this situation, however, the shortage of
hou sing fa cilities, office space a nd busin ess locations is very acute and it will take more than the
present unfavorable factor s to hold the mov·ement
in an ything but a temporary check.
P ermits issued at the principal cities in October, as
compared with October, 1918, were:
No.
1918
Valuation.
No.
1919
Inc. or
Dec.
Valuation.
0/0
Austin .................. 4
Beaumont ............ 53
Dallas .................. 23
EI Paso ................ 74
Fort Worth ........ 29
Galveston ............ 373
Houston ........... .136
San Antonio ...... 227
Shreveport ........ 44
$ 28.400
8
48,231
55
14,550 162
16,396 146
22,603 196
21,071 514
40.412 428
329,938 181
10.020 146
$ 28.751
67.618
1,846,988
317.784
2,111,065
47,754
1,257.324
477.170
372,295
1.2
40.1
12,594.0
1.838.1
9,239.7
126.6
3,011.2
44.6
30.561.6
Total .............. 963
$531.621 1836
$6.526,749
1,127.7
The number of comm ercial failures in the district in
October- the latest figures available
FAILURES - shows a slight decline compared
with the same month of 1918 with a
sub stantial decr-ease in the amounts involved. The
statistics, as compiled by Dun's Review, follows:
No.
30
1918
1919
Liabilities
No.
Liabilities
$410,202
22
$263.516
Decrease in number-8
Decrease in liabilities-$146,686
Without exception reports as to the livestock industry are very encouraging. The
LIVESTOCK range country is in fine shape,
feed is plentiful, with some evidence of declining pric·e s; there is an ample supply
of water, and stockmen are finding it much easier
to secure needed financial assistance. Our correspondents advise that with the available supply of
feed and water, herds will go into the cold weather
in excellent condition and more stock will be carried
over to another s·eason than anticipated.
Buyers report a scarcity of hogs, attributable to the
excellent prices which obtained a few months ago
a~d U~e large supply of feed. This situation is contnbutl11g to the present light receipts. Prices on
the Fort Worth market have shown no material
advances or declines in the month above the usual
?aily fluctuations, based mainly
receipts.
~he table following shows comparative receipts at
ort Worth from January 1st to November 24th,
1918 and 1919, and from November 1st to 24th both
years, inclusiv'e.
'
01;
Receipts from Janmu-y 1:
Cattl
1918
C I e ---------------------------------- 1,263,391
yes -------- --------------___________ 257,129
It
~1~~~
______ __ __ :::::: :::: ::::::::::: : : :::
orses and mules ____________
November receipts:
Cattle
~~~r- -- - - .·
••
•
orscs and mules __________ __ __
73,239
1919
931,356
221,314
538,518
424,289
50,675
Loss
332,035
35,815
92,190
*107,762
33,564
*Gain
103,613
20,894
44,108
12,180
6,795
93,762
25,980
22,851
28,857
8,448
9,851
*5,086
21,257
*16,677
*1,653
*Gain
~i~:~~~
The lumber mills advise that owing to continued
rains it has been impossible to get
LUMBER
production back to normal and at
75
the present time the output is only
% of capacity. The demand, while not as strong
~s 111 the late summer, is, nevertheless, sufficiently
.eavy. to ~ore than absoi-b present production. This
situatIOn IS expected to continue for the remainder
of th~ year and be accentuated in the spring months
prOVided the strikes and other industrial disturb ances. subside. The mills peport that labor.is more
plentiful but the quality is very unsatisfactory _
The increase in retail volume is conservatively estimated at from 25 to 75%
RETAIL TRADE
ov'e r the same period a year
ago_ This volume is attributable to the high prices of goods and more than
offsets the decrease in the number of orders or purchases. Specific r'e ports on dry goods, men's and
women's apparel, drugs, furniture, groceries and
hardware are of the same character, and indicate
heavy volume, an increasing demand for the better
grade of merchandise and no evidence that high
prices are causing any hesitancy in buying. Luxuries and so-called "non-essentials" ar·e in heavy demand and the shortage of goods, which obtains in
practically every line, is the problem which dealers
are facing.
In wholesal,e lines and especially mail-order business, the volume being transWHOLESALE
acted is very heavy, with colTRADE
lections good. Prices continue
to advance. The poor cotton
crop and damage from floods in the South and
Southwest coast countries has made for slow business in that section but reports from every other
part of the district indicate that wholesale sale is excellent and if dealers were able to secure goods
would be even greater.
Inadequate stocks and lessened production, on account of the labor disturbances, are proving a great
handicap in wholesale and jobbing trade. It is impossible to fill the orders received and many firms
have reduced their traveling force on account of inab ility to supply various numbers and lines.
STATEMENT OF CONDITION OF THE
FEDERAL RESERVE BANK OF DALLAS
At the close of Business NOVEMBER 21, 1919
RESOURCES
Gold
Gold
Gold
Gold
Gold
coin and certificates in vauIL .............................................. .................................................................................... .. $ 6,823,233.00
settlement fund ............................................................................................................................................................ .. 24,277,524.98
redemption fund ........................................................................................................................................................... .
3,008,304.90
3,697,084.97
held with foreign agencies ..................................................................................................................... _.................. .
with Agent for retirement of F. R. Notes ........................................................................................................ .. 25,491,600.00
Total .................................................................................................................................................................................... $63,297,747.85
Legal tender notes, silver, etc.............................................................................................................................................
Other cash and cash itelns ........................................................................................................................... _.......................
1,584,474.80
796,327.00
Total .................................................................................................................................................................................... $65,678,549.65
559,200.00
5% redelnption fund-F. R. Bank Notes ......................................................................................................................... .
Bills discounted-members ................................................................................................................................................ .. 41,977,~11.80
7,829,534.49
Bills bought in open markeL ..................................................................................................................... _.............~ ....... ..
Total Bills on Hand ...................................................................................................................................................... .. $49,806,746.29
3,966,000.00
Investments-U. S. Bonds ............................................................................................................. _................................. ..
U. S. Certificates of indebtedness .................................................................................................................................... .. 11,310,000.00
Total earning assets ............................................................................................................................. _...................... . $65,082,746.29
5,175,152.66
Federal Reserve Banks-Transfers Bought -(net) ................................................................................................ ..
Checks and drafts in process of collection ......................................................................................... _.......................... . 39,167,601.51
4,591,280.91
Due from other F. R. Banks ..............................................................................................................................................
All other resources ......................................................................................................................................... _...................... .
829,750.65
Total Resources ............................................................................................................................................................ $181,084,281.67
LIABILITIES
Capital paid in ...........................................................................................................................................................................
Surplus ................................................................................................ ......................................................................................
Government deposits ............................................................................................................................................................
Due to member banks' reserve accounL............................................................................................................................
Foreign Government credits ................................................................................................................. _...... _...................
Deferred credits, account checks and drafts in process of collection ..................................................................
F. R. Bank Notes secured by U. S. Bonds....................................................................................................................
Federal Reserve Notes in circulation..............................................................................................................................
All other liabilities ................................................................................................................................. _...............................
$ 3,437,250.00
2,028,868.33
3,270,748.53
60,729,430.59
1,879,645.46
29,739,735.05
10,187,692.00
67,779,675.00
2,031,236.71
------
Total Liabilities ........................................................................ .................................................................................... $181,084,281 .67
OFFICERS
W. F. RAMSEY,
R. L. VAN ZANDT,
Federal Reserve Agent.
Governor.
LYNN P. TALLEY,
Deputy Governor·Cashier.
CHARLES C. HALL,
PAUL G. TAYLOR,
R. BUCKNER COLEMAN,
Asst. Federal Reserve Agent.
Assistant Cashier.
Assistant Cashier.
FRED HARRIS,
DWIGHT P. REORDAN,
Assistant Cashier.
Assistant Cashier.
•
@FedFRASER