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Released for Press January 31, 1923.

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MONTHLY REVIEW OF BUSINESS AND
INDUSTRIAL CONDITIONS
IN THE

ELEVENTH FEDERAL RESERVE DISTRICT
FEDERAL RESERVE BANK OF DALLAS
w.

B. NEWSOME, Chairman and Federal Reserve Agent

CHAS.

(Compiled January

c.

HALL, Assistant Federal Reserve Agent

IS, Iq23)

a

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Volume 7

Dallas, Texas, February

NS.12

I, 1923

:!"4J11 1U ,II IlInt'IIIIUtl ll mllIlUUIIIIIIIIUIIIIIIIIIIUI Il IlUlltII IU III IIII II IIIU ltt UIIlJlllllllll ll hll lltlllllt lllll iitIJIIIUUJIIIUltuUllllUII IIIIUIIUUll1UII III Ulllllllll tII IlUlll lnUUII,mlll llllllllllll lmUlI ,nlUlll llllllll lllll llnUll tnlll1lllf1U1III f1 I11I IU1I11111111tt lllIllUlfllUIIDlllllUtlliff

THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
December

;_===__~-

~

Bank Debits to Individual Accounts
(weekly average at 13 cities)....................................................
Department Store Sales....................................................................
Reserve Bank loans to Member Banks at end of month............
I{eserve permit valuation of month...... ........................................
Building Bank ratio at end at larger ee.nters........ _._ .............. __
Commereml failures (Number) __......._............... __ .__............ __ ._
Commercial fnilUl"es ~Liabi1ities) .... _ _._ ... _......... .__ ............ _.
Oil Production (barre s). __ ..... __ ..._ ............... _ .... _~ ............. _
Lumber Orders at Pine Mills (per cent of normal production)
* See page 14 for comments on increase in building permits.

November

Inc. or Dec.

$152,542,000

$162,985,000

$ 14,422,329

$ 15,056,417

Dec.
Inc.
Dec.

6.4%
42.3%
4.2%

49.8%
$ 9,672,787
129
$ 2,118,607
12,273,980
96%

$

60.1
3,918,034 %
83
$ 1,361,108
11,816,435
89%

Dec. 10.3 points
Inc.
146.9%*
Inc.
55.4%
Inc.
55.7%
Inc.
3.9%
Inc. 7 points

__-=~
-

~

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GENERAL SUMMARY
The problem of finding profitable employment for
the surplus funds flowing into this district from the
sale of its 1922 cotton crop was the outstanding development in the local financial situation last month.
With proceeds in hand from a crop which yielded a
100 per cent larger cash return than did the crop
of 1921, both the Federal Reserve Bank of Dallas
and its member bank family found it necessary to
seek an outside medium of investment for their idle
funds, due to the fact that the use of bank credit
in this section is always slack at this season of the
year, and the revival of business which has been
gradually gaining headway has not yet reached the
stage of expansion that would enable it to absorb
such a heavy volume of loanable funds as has just
been accumulated from the sale of an unusually
profitable cotton crop. The result was that in the
month of December, the Federal Reserve Bank of
Dallas increased its investment in Bankers' bills by
$5,600,000, and the reserve city banks at the same
time increased their holdings of United States government securities by $9,800,000.

Trade reports for December reflect a most satisfactory volume of holiday distribution. In wholesale lines, however, the buying demand was somewhat quiet, as is to be expected at this season,
although one important branch of wholesale trade
furnished an unexpected exception to the general
rule, the sales of farm implement distributors showing a 23 per cent gain over the month of November.
Commercial failure statistics for the month, which
disclosed a considerable increase in number and magnitude of suspensions, indicate that the weeding out
process that has been in evidence for some time has
not yet run its course, although a comparative survey covering the year 1922 shows that this district's
failure record compares quite favorably with other
sections, the Eleventh District being the only one
which suffered fewer failures last year than in 1921.
Agricultural and livestock prospects for the coming year, although unfavorably affected by the ·present winter drouth, are on the whole encouraging.
The livestock interests, with their financial affairs

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

2

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

stabilized, need only a fair measure of favorable
weather and range conditions to place their industry
upon a sound and profitable basis.
Oil production, lumber sales and building activity

registered small but satisfactory gains during December, due largely to the unusually favorable
weather conditions that have prevailed thus far this
winter.

CROP CONDITIONS
Crops and farm operations are feeling the effect
of the lack of rainfall during the past month. Texas
rainfall for December was one-fifth of normal, and
one-third of the rainfall in December, 1921. Reports from the northern, southwestern and west central counties of Texas indicate that the winter wheat
crop is suffering from the drouth. Early plantings
are making a poor stand, while in many fields the
crop has not yet come up. There is still time, however, for a substantial recovery to be achieved by
the Texas winter wheat crop, and if rains are received soon the wheat belt is capable of producing a
fair yield.
Practically all of the cotton crop has been picked
and ginned. The Texas crop for 1922, it is believed,
will amount to approximately 3,150,000 bales. The
high price commanded by the staple is reported to
be exerting a marked influence upon the acreage
plans of Southwestern farmers, and the situation at
this time indicates there will be a general increase
in the district's cotton acreage this year, not only in
those sections where cotton has been grown for some
time, but also in certain parts of West Texas where
it will be planted this year for the first time.

Truck crops and citrus fruits are now moving
from the Rio Grande Valley in carload lots, and
strawberries from that section are now appearing on
the market.
Texas Crop
Results for
1922

Appended below will be found a
chart and table showing the relative
production and value of various
crops grown in the state of Texas in
1921 and 1922. It will be noted that the value of the
state's agricultural production last year was $716,408,000, as compared with $424,776,000 for 1921,
which shows an increase of $291,632,000 or 67 per
cent. Another interesting feature of these statistics is the fact that the riCA and oat crops, though
smaller than in 1921, produced a larger aggregate
value. A comparison of the Texas 1921 and 1922
cotton production shows that while last year's crop
yielded the producers $209,623,000, (or 118 per cent)
more than they received for their 1921 crop, the gain
in cash returns was much larger than the increase in
the production, which amounted to only 50 per cent
according to the figures compiled by the Department
of Agriculture.

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COMPARATIVE PRODUCTION AND VALUE OF TEXAS FARM PRODUCTS
(Compiled by U. S. Department of Agriculture)

-1--

_

,_--------=!

_

----=
_=

I~
§

VALUE

QUANTITY

Commodity
1922
eanuts ..................................... 96,320,000 lbs.
weet Potatoes .......................
8,715,000 bu.
P otatoes
------------_._ --------------_._- 2,418,000 bu.
ay (tame and wild) ...........
1,295,000 tons
ice .........................................
5,959,000 bu.
ats ......................................... 33,465,000 bu.
heat .....................................
9,992,000 bu.
orn ......................................... 114,580,000 bu.
otton .....................................
3,290,000 bales
rain Sorghum....................... 39,400,000 bu.
leven Miscellaneous Crops.
Total, 22 Crops ...............
ypothetical value, all crops

Inc. or Deo.

1921

123,825,000
8,200,000
2,072,000
1,105,000
5,993,000
33,570,000
20,810,000
156,920,000
2,198,000
56,550,000

lbs. -27,505,000
bu.
515,000
bu. + 34.6,000
tons + 190,000
bu. 34,000
bu. 105000
bu. -10,818 000
bu. -42,340,000
bales + 1,092,000
bu. -17,150,000

+

1921

1022

Ino. or Doo.

4,210,000 -$
360,000
lbs.
$ 3,850,000
7,40 ,000
6,970000 +
438,000
bu .
3937,000 bu .
3, 69,000
68,000
tons
3,755,000
14,561,000 10, 06,000 +
6,053,000 +
bu.
8,760,000
2,707,000
1 ,406,000 13,092,000 +
5,314,000
bu.
9,819,000
bu10,991,000 20,810,000 bu .
95,101,000 84,737,000 + 10,364,000
209,623,000
hales 386,575,000 176,952,000
bu.
39,400,000 23,186,000
16,214,000
5,698,000
1,811,000 +
3,887,000

I
§

+
+

t

I~?94,619,00 0 352,664,OO + $242,055,000
O
$716,480.000 424,776,000

+ $291,632,000

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3

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
PRODUCTION AND VALUE OF TEN TEXAS CROPS IN 1922 COMPARED WITH 1921

_

r:==J

192'

ProductIon
Value

100%
I

Cotton
Corn.

Oats
Wheat

Gral7lSoY9hums
I

Hay
RIce

Swee't fbtatoes

e

~----------------------------I~
I

Irish PotatQes

~--------------------------~III
I

PeCUlv"ts

I
I

I

All CyoPS
Cotton
Movements

December cotton receipts at the
port of Galveston fell 210,000 bales
below the receipts for the month of
November. In 1921 the decrease amounted to only
64,000 bales. That this indicates a tendency at interior points to hold cotton this season is substantiated by the fact that although the Texas crop for
1922 was 50 per cent larger than for 1921, the total
exports this season at Galveston have been only 19
per cent larger than last season. While this situation is partially accounted for by the higher rail
freight rates prevailing in 1921, this feature of the
transportation situation is hardly of sufficient importance to account for the marked slowing up in
the export movement through this port.
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~

~
~

COTTON MOVEMENTS THROUGH THE PORT OF ~
GALVESTON
:=~: =
Deoember
1922

~ Gross Receipts __ .

_ Exports .. _ ...... _..
~ Stocks, Dec. 30.......

253,480
370,314

December
1921

Aug. 1st to Dec. SO~h
Thla
Last
Season
&.asoD

~

252,188 1,884,703 1,621,909 ~
283,143 1,589267 1,497,116 ~
............... 360,171 367,480 i

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GALVESTON STOCK STATEMENT

IIE ~~ijj~~~~~:::~~~=: -~iu ~~;;; I
5 In compresses ... ____.__ ............ _...... _.

300,395

339,900 S

Total . __ .. _............... _ ... _._._._......

360.171

367,480 ;

;

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~
RECEIPTS,
~
I SEASON'SALL UNITEDEXPORTS, AND STOCKS AT I
STATESn!0RTS
L ....t

~

Suson

So>ason

~

I~:~,'~;~~ $: ~!i:l~ ::!~!~ I
~

Stocks at U. S. ports, Dec. 30

1,000,294

1,295,915 ~

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MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

LIVESTOCK
Since the 15th of December the ranges in this district have undergone some deterioration, due to dry
weather. Except in Southeast Arizona, no rains of
any consequence have fallen in the range country
since early in December. The usual winter precipitation has thus far been conspicuous by its absence,
and the resultant deficiency in grazing has not only
necessitated feeding on a larger scale but in many
sections where feed is not accessible livestock has
been weakened to such an extent as to give rise to
serious concern for the safety of cattle, as it is
feared that if the present dry period should be followed by a severe cold wave some heavy losses would
result.
In contrast with other parts of the district, range
conditions in our section of Arizona are reported to
be satisfactory, sufficient rainfall having been received to keep the supply of grass and stock water
well up to requirements.

December was an encouraging month for shippers,
from the standpoint of market values. While the
first few days witnessed a continuation of the downward trend that featured the month of November,
the meagreness of receipts brought about a healthy
reaction, and the market recovered about all the
ground lost in the previous month, with top prices
in some lines scoring a handsome gain. Hogs, calves,
and sheep displayed the most strength, and at the
end of the month the demand for all classes of animals revealed a firm undertone.
The l·ange of values during t he first twenty days
of January howed no great variation from t he level
of prices at. the end of December. Stockers and
f eeders have slightly a ppreciated in value, f at st eers
are about unchanged, while hogs and calves at this
writing are a shade lower.
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S
~

Movements
and Prices

Although December livestock receipts at the Fort Worth market
showed the usual falling off as compared to the previous month, supplies equalled or
exceeded the volume handled in December, 1921,
with the exception of sheep, which registered an
enormous decline, the receipts being the smallest of
any December for the past eleven years. On the
other hand, the December movement of hogs exceeded that of both November, 1922, and December,1921.
The month's receipts of cattle brought the total
for the year up to 759,861, or a gain of 187,365 over
the year 1921; while the 1922 total on calves was
324,311, or 86,592 less than the previous year's
record.

;

~

FORT WORTH LIVESTOCK RECEIPTS.

:

~

~

;:

December November

Gain or

December

i
i

Gain or

I ~;~:', ~iii: i ,iff ~ ~i:,in If,,iii f;Iu~ ~_i=
=

Sheep .......... 7,957

•

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COMPARATIVE TOP LIVESTOCK PRICES

:-

December

; Beef steers ............................

§ Stocker steers ........................

November

6.50

7 00

December

::;

$2~.25 $n;.50 ~2~.50 ;
5 00 ~

!I~ :~) :.,: f.: .:;.:, ;,:.;,: ,:" ,: ~!:,~. . . . .J,!!t......,I!!. .

1
.

.......

1

WHOLESALE TRADE
The year 1922 has been one of recuperation and recovery. Losses
were sustained by many firms during 1921, due to the heavy merchandise inventories
which they were carrying when the depression first
became apparent. Consequently it was necessary for
them to write off large sums on account of replacement costs. During the first three months distribution in all lines of trade dropped to a lower level than
in the corresponding period of 1921, and as compared
with the same period of 1920, the 1922 volume of
business seemed decidedly meager. The spring

Review
of 1922

months, which were accompanied by an active building program and a better outlook in the agricultural
sections, gave a better tone to the business situation.
The second quarter witnessed an improved distribution in all lines, farm implements and furniture
showing a substantial gain over the first six months
of 1921. Other lines enjoyed substantial improvement and the volume of business began to more . closely approximate the 1921 volume. The third . ,
quarter was naturally the period of heavy distribution. Despite the fact that drouth and weevils cut
the Texas cotton crop' down to approximately

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

5

3,150,000 bales, the farmers were able to gather this the possibility of the higher prices causing another
year's crop with but very little waste, and received a buyers' strike, which will retard distribution.
very satisfactory price for it. Considering the fact
that the crop was produced on a very economical
The distribution of groceries during
Groceries
basis, it left the farmer with a good profit. ConseDecember showed a further decline
quently he was able to liquidate obligations which in
of 9.9 per cent as compared with November, but
many cases represented carryovers from as far back
there was an increase of 22.9 per cent as comas 1920. Collections made by local retail merchants
pared to December, 1921. Conditions in the grocery
enabled them to pay their creditors. While 1921, for
trade have been gradually growing better during the
the most part, represented a period of price declines,
past year and give cause for expecting further imthe reverse has been true during 1922, for although
provement. Dealers generally report that the prosprices in practically all lines were on a low level durpects for the coming year are very bright. Prices,
ing the earlier part of the year, they have since been
which have been steadily advancing for some time,
gradually working upward. This has had a tendency
have shown further advances since the first of the
to stabilize the market, give more confidence both to
year. A scarcity of California dried beans, particuretailer and wholesaler, which in turn have tended to
larly the small navy beans and the lima beans, has
produce more normal merchandising methods. The
become apparent, as the present supply of these vaconsumer, however, has not become fully reconciled
rieties is not sufficient to supply the trade for the
to the rising trend of prices, and has shown a tendremainder of the season. Higher prices for canned
ency to resist further increases. Buying for the
tomatoes have been announced at Baltimore, where
most part has continued on a hand-to-mouth basis,
large quantities are packed. While some dealers
but during the fall months there was a greater tendstate that the volume of orders placed for future deency to anticipate needs. This has been particularly
livery is beginning to assume normal proportions, the
true of the dry goods trade on account of the rapidly
majority state that the volume of forward orders is
advancing prices in the primary textile markets.
rather small.
Dry Goods

Midwinter dullness incident to the
holiday period was evidenced in
wholesale dry goods sales, which were 44.2 per cent
less than during the previous month. However, the
4 per cent increase in sales over December a year
ago evinces the improvement which has taken
place in the trade during the past year. Sales for
the second half of the year were 5.7 per cent greater
than during the corresponding period of 1921. The
year closed with the dry goods trade in a strong position and with the prospects good for the next few
months. Retailers are still following a conservative
policy, but are showing less hesitation in placing forward orders. The indications are, however, that they
are not overstocking their shelves, but merely preparing to meet the legitimate demand which is now
evident in retail circles. Forward orders have been
stimulated to some extent by the upward trend in primary textile markets. The higher prices seem to be
stimulating business rather than retarding it as was
the case a few months ago. This is due to the short
cotton crop and the fact that domestic consumption
and export of raw cotton have been large despite the
unfavorable developments in Europe. The textile
mills are now running at near capacity and orders on
hand represent approximately three months' production. The only unfavorable aspect of the situation is

Farm
Implements.

Sales of farm implements during
December reached the high point of
the year, being 23.4 per cent larger
than during the previous month and 159 per cent
larger than during the corresponding month of 1921.
Sales for the last six months of 1922 were 192.3 per
cent greater than during the same period of 1921.
This shows the extent to which the trade is overcoming the unfavorable developments which occurred during 1921. While sales have in no sense reached
normal proportions, they have shown great improvement over the period of the depression, and the current year will be one of large distribution unless unfavorable developments in the agricultural situation
place a different aspect upon present prospects.
There are still many farmers whose supply of implements is deficient, and with the prospect for a high
price for the next cotton crop he is likely to supply
himself with the long-needed implements to cultivate
this year's crop. The retailers are buying freely, but
for the most part are still following the policy of
buying for immediate sales and are not laying in
large stocks. While in some cases the retailer is
buying in carload lots, in most instances he is depending upon the wholesaler to carry his stock, so
that he can replace his supply in small lots as occasion demands.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

6

The increasing cost of labor and raw materials is
gradually forcing higher prices for implements on
the farmers. In fact, some firms have already put
these higher quotations into effect.
Furniture

Sales of furniture firms during December shrank 15.5 per cent as compared to November, and 3.8 per cent as compared
to December a year ago. However, sales for the season July 1st to December 30th were 19 per cent
larger than during the corresponding period of 1921.
The small decrease from December, 1921, is not surprising when it is recalled that sales during that
month were 50.8 per cent greater than sales during
December, 1920. The year 1922 has been an unusually good one for the distribution of furniture
and with the prospects of another good home-building year the outlook for 1923 is promising.
Drugs

The December sales of reporting
drug firms showed a decline of 9.8
per cent as compared with the previous month, but
increased two-tenths of one per cent as compared
with sales during December, 1921. The drug trade

I

has ~hown a gradual improvement throughout the
year and some firms report that January sales are
measuring up to expectations and are showing substantial increases over a year ago. In a majority of
instances wholesalers report that practically all 01'ders are for spot delivery, but some report that retailers are placing forward orders somewhat more
freely. The price situation has shown but little
change, but the tendency is slightly upward on most
items.
Hardware

The December sales of hardware
firms reflected a decline of 15.6 per
cent as compared to November, but an increase of
].9 per cent as compared to December a year ago.
The buying demand showed some improvement during the month and the present outlook is favorable.
The distribution of builders' hardware continues
brisk, due to the sustained building activity. Some
wholesalers report that orders for future delivery
are being placed in a larger volume than at any time
during the past two years. This has been especially true since the prices on iron and steel articles
have had an advancing tendency.

CONDITION OF ~~;:~A;fE,!~~: o~~~i~BE~~~

Groceries .... _...__... _... ......_.... _ ................. __................................__ ....
~ Dry Goods .•._....................... _ ................ _........ _ ............._.........................
§ Hal1dware ................................................................ _......... _..._ ... _....._....
;1

I~~~~,,:~Pl:,?:=~

= : :?:=:::

+
+
+

22.9
4.0
1.9

: ~: :15~:!

- 9.9
-44.2
-15.6

+i!:!,

+
+

+

15.6
5.7
20

~~~~
25.0
-16.8
- 4.4

r:q -':::

+ .2 ;;
+16.9 ~
7.0 ~

+

+~:

e

I

~" '10"'II'IIJIIO'''''IU''''I'"''I"''"I1 ''''I11''' ''''IU''"I"'''""'11II'111II11'"IUIIIU" 'III'IIII'IIIIII" 'IIII'IIIIII"'IIII'I'I" lUIII'"'"IIlilllU.IIIIIIIIIIIIIIIJIIUIU'''"1O.",,,I.IIU.UIIIJHI,, II,.,IIII I •• III • IIIII.1I11,'""I"'''"''nlUlLI'''''"I''''''I''''"''''III.,. rllllll'~

I

fijl ll UllllllllUlt t tllllll ll lm l l llllllllllll ltl lll ll l ll lll llll llUl tll llll l 1IUIl II IIIII IIIIIUl IIIII IIII'Ulll lll llll lll lltitiIlUUII,IIIII II I IIII U ' IIfU l lllfU lll' Ulllll l l fIIllllfII I II IIIIIIUllllflIIUIIII IIIIII II IIUlll tU,lI lJlliI'IUIU U I IIII I I,I IUlllnm l r nUUll nnU t I I IllI III UU ,II III IIU UU IIIIUIIU III UIIII' 1II III~

RETAIL TRADE
Seasonal activity stimulated principally by Christmas shopping augmented retail distribution during
December. Department store sales were 42.3 per
cent greater than November sales, but were practically the same as those during December, 1921.
The unusually mild winter in this section has restricted the distribution of winter goods. The sales
of Christmas goods, however, were large and covered a wide variety of commodities.

at the close of December a year ago. The ratio of
stocks to sales during the last half of the year was
405.7 per cent, which compares to 444.5 per cent for
the last half of 1921. The was due to the lower
stocks carried this year.

Stocks on hand at the close of December were 17.1
per cent less than those on hand at the close of
November, and 5.8 per cent less than those on hand

The ratio of December collections to accounts receivable on December 1st was 39 per cent as compared to 38.3 per cent during November.

The ratio of outstanding orders at the close of
December to last year's purchases was 7.5 per cent
as compared to 7.2 per cent at the close of November.

7

MONTHLY REVIEW OF BUSINES S AND INDUSTRIAL CONDITIONS

~"""""'''IIIIIIIII''"lllll'lIIllllIIlIIl[lllllllllllllll''''''I'IIIIIIIII''''IIIIIIIII''11111111IIU'~'~~'i~~'~~"I~I~";il;l~il~l:i~'~"~~'O~i~llI'""'11111","",111'"1111"1111111''''"1'11111''"11111111111111111111'"11111'''11'111''"''IIII"""""'i

i===_:

§
§

~
§
~
~

~=_:_
=

~

~

=

Totol Sal,,n ec., 1922, compared with Dec., 1921................................
Dec., 1922, compared with Nov., 1922................................
July 1st to date compared with same period last year........
Credit SalesDec., 1922, compared with Dec., 1921................................
Dec., 1922, compared with Nov., 1922................................
July 1st to date compared with same period last year....
StocksDec., 1922, compared with Dec., 1921................................
Dec., 1922, compared with Nov., 1922................................
Ratio of stocks to sales..................................................................
Ratio of outstanding orders to last year's purchases............
Ratio of December collections to Accounts Receivable, due
and outstanding Dec. 1, 1922................................................

D"+las

ot~~r

8.4
+ 39.3
+ 2.9

Ft. W+ortb
1.6
+ 49.8
+ 1.5

Houston
+ .8
+ 42.6
+ .3

+ 4.7
+ 27.2
+ 4.4

+ 12.3
+ 37.4
+ 7.8

+ 11.9
+ 31.6
+ 7.9

1.8
+ 36.5
5.8

3.7
_ 18.1
387.2
8.5

5.1
10.7
417.2
6.5

8.3
- 18.2
441.1
6.4

-

34.4

40.4

41.7

5.9
+ 41.2
9.1

D'f.~~i!t

i===_:

.1
+ 42.3
1.4 ~
§

+ 5.1 ~
+ 31.5 §
+ 2.8 ~
§

7.5
20.7
402.3
6.2
47.9

5.8
17.1 _
405.7
7.5 ~
i=_-

~

39.0

=

fuunll1 ll11l1llm,U",llljj" nlli,llllJt , UU~""uun,fm,I"IlIl,,IlUJ,I.I,1U1IIIIIIUI IJIIIUIIIIIUIIIIUI.IJ IIIIIIIU1UlUlIllUUlllUIIIIUU11111111rJ1tlIIuurUllflunIIIlUUIIIllUlllmmllllllll'IIIIIIJIUlI,,,UIIIUlIUIIUIIUUIIULtIULIIIllmJIIIUnUIIIIIIIIIUIIIIIUUUltmUllllllllllllrunllllllll~

FINANCIAL
There was a further shrinkage in the volume of
public spending at the larger centers of this district
during December as measured by debits to individual
accounts. The weekly average of debits to individual accounts during December amounted to $152,-

542,000 as compared to $162,985,000 during November, showing a decrease of 6.4 per cent. However,
the December debits were 4.4 per cent larger than
December, 1921, the debits for the latter month being $146,096,000.

!1IUllllllllnnul lll lIl! tIII UlIIIIIUltllmllt,munUlljIIIUlUIIIIIIIIIrIIlltlllllnllllUll1lll11mmUllUllll11UllllUlUIIIUIHllUllIlIl1ttUUllllIIUnnllll1lll11lHHIIIIrt llllllllllllllllllll1nnllllUilUlrlUUllllillllllilUUllltUlllllUUl llll tllHIIIH1llllIlUlmmllnmlllllllllUUlluunUlIIIIIIlI!;

~

I
i

CHARGES TO DEPOSITORS' ACCOUNTS

A1b._qu • .•. • - ........................................ . ......... . ..................
Austin ........................................................................................................
Beaumont ..................................................................................................
Dallas ........................................................................................................
§ EI Paso ......................................................................................................
~ Fort Worth ................................................................................................
~ Galveston ..................................................................................................
~ Houston ......................................................................................................
§ San AntOnIO ..............................................................................................
~
Shreveport ................................................................................................
_ Texarkana, Texas ....................................................................................
~ Tucson ........................................................................................................
~ Waco ......... ................................................................................................

I

Totals, Eleventh District ._.... _ ... _..._ ..........._.............. _....... _...

D«$'";,2~~::O:A:::;;,:,~~:..·'i'";. ~;,~oo
3,917,000
3,742,000
41,562,000
7,429,000
26,127,000
17,618,000
27,392,000
6,828,000
7,672,000
2,151 ,000
1,837 000
3977'000

3,948,000
3,417,000
43,987,000
7,247,000
25,429,000
22,261,000
29,707,000
6,944,000
9,148,000
1693,000
2 056 000
4'798'000

2,876,000
3,212,000
35,383,000
7,941,000
31,229,000
16,089,000
27,292,000
6,461,000
6,707,000
1,756000
1 670' 000
3'619'000

$152:542'000

$162:985:000

$146:096:000

~

I
_
I

~
~

~
~

~

;
~
§

I

,llW ll lll lll lljlllttUlUtl tllll ll llllJl lUlU tt Ullilll lUlU IU lll llll1lll1UlIIIIUl IIJlUlWUUllllllUIlllJJlILmllllllllllltllUAlltJIIl tllllllllil lU IIIIU4IJUlllIIl Ill UUJ IIHllllllUllllliUlUlllUnlllllllUlllIIUltJlllJiUJlUUlllUlUlIl1IIIII""llllIIntIUllllllU1l11l1flllllulllulrumlllllllllllllllllllllue

Acceptance
Market

There was a slight increase during
the month in the volume of acceptances executed by accepting banks
of this district and which were outstanding at the
close of the month. Acceptances outstanding on
December 30th amounted to $2,324,321.14 as compared to $2,313,368.78 on November 29th. The volume of acceptances executed against import and export transactions fell from $505,550 on November
29th to $400,000 on December 30th, but those based
on domestic shipments and storage of goods rose
from $1,807,818.78 on November 29th to $1,924,321.14 on December 30th. On December 30th the
total amount of this class of paper held by the Federal Reserve Bank of Dallas was $26,826,619.80 as
compared to $21,153,252.31 on November 29th.

Condition of
Reserve City
Banks

Reports from reserve city banks reflect a further decrease of $1,422,000 in loans during the month.
Total loans on November 29th aggregated $214,834,000 as compared to $213,412,000
on December 27th. Net demand deposits on December 27th amounted to $235,044,000 as compared to
$240,187,000 on November 29th, which reflects a decrease of $5,143,000 during the month. The reserve
deposits which these banks carry with the Federal
Reserve Bank declined from $26,043,000 on November 29th to $25,058,000 on December 27th and their
borrowings decreased from $3,666,000 to $2,672,000
during this period. The investments of these banks
in United States securities increased $9,814,000 during the month. The ratio of loans to net demand de-

8

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

posits increased from 90 per cent on November 29th
to 91 per cent on December 27th, due to the loss in
deposits during the month.
These banks show a considerable improvement as
compared to a year ago. There was an increase of
$42,975,000 in net demand deposits, $18,531,000 in

investments in United States securities, $15,009,000
in loans, and $3,843,000 in reserve with the Federal
Reserve Bank. These f igures reflect the expansion
in business which has taken place during the past
year, as well as the ability of the banks to finance
customers out of their own resources.

r""""""""III"III"III""""''''''''''''''''''''''III~~'~~'~~~'~~"I~~~'~~'~;~~'~'~"'~;''':;':~;';"'~':~'~'~'"~:"'~~'~~'~;;~""~'~;~;'~""'''''""'''''"""'''''"''''''''''''''''""'''''''''"111
3

=
;

1
:
_

E
Dec. 27 , 1922

1.

l:

Number of reporting banks....................................................................

$

All other loans.._ ..._ ............................................................... __ ~•.. _.

9.
~ 10.
~ 11.

Reserve with F ederal R eserve Bank_........................... _.......................
Bills payable with Federal Reserve Bank .................................. _ ..._.
Percentage of loan (*) to net demand deposits....... _............. _... _
· Loans include only items 4 and 6.

~

52

Dec. 28, 1921

52

51

"

!

~i~t~;Wj}1~l.}t~~!\.~1;:~tj~:f;~;¥~i~;~~~~~~~ :~:!!!:!!! :!:!!!:!!! :!:~!!:!!! l_~

6.

I

Nov. 29, 1922

~: ¥j~ede~~~!t~~:.~...i.~~::=:=~:~-=~:::::=:::.=::=:==:==:=:::::::::::::::::==:::==::

$

$

208,712,000

2~g:~~i:ggg

25,058,000
2,690,000
91 %

209,917,000

2:~:!~~:ggg

26,043,000
3,666,000
90%

192,194,000

l~~;~~~:ggg

I

21,215,000
~
12,687,000
g
103% ~

§
~
;;;111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1 111111111111111111111111111111111111111111111111111111111111111I111111111'IIU ~

Operations of
the Federal
Reserve Bank

Loans to member banks registered
a further decrease of 634,088.32
during December.
These loans
amounted to $14,422,329.67 on December 30th as compared to $15,056,417.99 on November 29th. The low point, however, was reached
on December 14th at $13,964,968.49, and since that
time has been gradually going up to meet the increased demand for credit. On January 15th they
had reached $16,079,126.79, which is greater than
the volume of loans on November 29th.
The past year has been one of liquidation. Despite the poor crops harvested during 1921 and the
unfavorable development in the livestock industry
the first four months of the year reflected constant
and heavy liquidation and during the crop-growing
period the Federal Reserve Bank was called upon
to furnish but comparatively little additional credit.
The total amount of loans to member banks on December 31, 1921, was $50,597,098.40, which represents a decrease of $36,174,768.73 as compared to
December 30, 1922. At the close of business December 30, 1922, 177 banks were borrowing from
this bank, which compares to 536 borrowing banks
at the close of business December 31, 1921, reflecting a decrease of 359 in the number of borrowing
banks.
The total volume of bills held by this bank on December 30th amounted to $41,248,949.47, distributed
as follows:

:.'llllIIlllIIiIlIIJlI1II11I1I11 II11II11 II1 II11I11IUIIIIIIIIUllmtrrUlllllllIlnlllllmnlllliU II IIIIIIIIIIIIIII IIIIIIII II IIIII IIIJIII UI IIIIIIII IIIII1I1 UIUW.

Member banks' collateral notes secured by
United States Government obligations $ 698,250.00
Rediscounts and all other loans to member
E
banks .......................................................... 13,724,079.67
§ Open market purchases (Bankers' accept§
ances) ........................ ................................ 26,826,619.80
:-;

=
-=1
__

__
---=

I

Total bills held .......................................... $41,248,949,47

~

~

~

J

~IIII1 IItIlIlIIll IlIII IllIllI IlIllIllL"ItIII IUtllllltlJI IUlJJmllWUIlIIllIlUUtJJJIIIIIIII I"1111I1I11I1IItliUmll1lUIIJllllllllllllllluUUtIIIIllIIII-;:

Federal Reserve notes in actual circulation declined from $39,895,818 on November 29th to $37,761,135 on December 30th, showing a net reduction
of $2,134,683 during the month. However, the circulation of these notes at the close of the year 1922
was $2,291,425 greater than at the close of the year
1921. There was a further increase of $529,257.93
in reserve deposits of member banks during the
month, the total amount on December 30th being
$54,461,086.84 as compared to $53,931,828.91 on
November 29th. The increase over December 31,
1921, amounted to $11,089,318.18.

Discount
Rates

The customary rate charged on customers' paper by commercial banks
at the cities listed below declined
one-half of one per cent at Dallas and Fort Worth,
and one per cent at San Antonio, but increased onehalf of one per cent at Waco. The "high," "low,"
and "customary" rates are listed below.

_
_

9

MONTHLY REVIEW OF BUSINES S AND INDUSTRIAL CONDITIONS

!

flllllllllllllllllll ll lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIlIIlIlIIlIlIIIIIIIIIIlIlIlIlIIfIIlIfIIlIfIlllllllllllllllllllllIfIlllllllllllllIfIllllllllllllllllllj

:

DISCOUNT RATES

DECEMBER

Dallas
L
H
Prime commercial
pa-per:
Cu tomers' 80 to
90 days..... _ ........
Customers' 4 to 6
months _..... -.........
Open market 80
to 90 days ........
Open market 4 to
6 months.__.......
Interbank loan ........
Collateral loans, demand ......................
Collatel'al loans, 3
~
months
= Collateral ...........-.. 3..
loan,
t o 6 month ............
Cattle loans................
Loans secuxed ,by
warehouse
receipts, B -L, etc.
Loans ecul'ed by
Government
securities . ___..... _...

I

--

:
i_!==
_

C

Ft. Worth
R
L
C

El Paso
L
0
n

Houston
San Antonio
R
L
C - n - - L -C

Waco
H
L

C

6

4~

5~

10

6

8

6

41

44

7

5

6

8

6

6

8

G

H

6

5

5~

10

8

8

6

4~

4i

7

5

6

8

6

6

8

6

71

6

4?J

5!

4

4~

5

5

5

....

....

....

"-

.. -

....

6

4~

4~

6
7

5
5

5~

10
9

8

8

5
6

.--.

4l

....
4!

....
8

'_.-

...

8

5
6

....

6

5
6

. .....

6

6

6

7

6

7

8

6

6;\

10

8

8

10

6

8

7

5

6

8

6

7

8

6

n

8

6

7

10

8

8

10

6

8

7

5

6

8

6

7

8

6

8

7

8
8

8
8

8
8

6
8

8

....

8

6

-'
7

7

6

7~

....

6
._
..

8

7

8
8

6

8

.-

8

5~

5

_

... ..........

8
8

6

n

]0
10

8

6

6!

10

8

8

8

6

7

7

6

7

8

0

7

8

7

8

5

6

10

8

8

10

6

8

5

4~

5

8

6

n

8

G

=

...

i

7.?!

:'11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111II1II111II1I11I1I1I1I1I1II11I1IIIIIIIIIIIIIIIIIIIIIIIIII1II1II11I"1111111111111111111nlll1IIIII1IlltlUlltUIJUUlUlllU UU IIUllluLUlltUtmummtUtUullllnll",u mmlttllUiumUU, lImu u mu nmm umnn mnlH

Savings
Deposits

!
I

'\1)::

to be 2.7 per cent greater than those on November
29th, and 13.2 per cent greater than those on De·
cember 31, 1921.

Reports from 111 banks which
operate savings departments show
savings deposits on December 30th

iitlllltllllllUlUllIUIIIIIIJI IU IIIIIII IIIIIIIIIIIII1IJ1UIIUlJfllllltltnlnmnnUIIIIIIIIIIIIIIII1II11J11llfflllllllUlUlIlIlIlIIlIlIllHmllltltIIlIUUllillUil l1f1l1lT1mntlllrnrmlllll ' ''UII" ,,,," m 1IIIIIIIIIU IUUl ll flllllll l lillUllllllumrnmmllIIIUltlillUtlnllllllllllllllilflUiltlilIIU ' IItutlIUIIU!!

==_1=1

VIN:i;;'ISI~,,',,

SA

_ Albuquerque ....................... __ ..... _............_._............_ _..
.....
Beaumont ._ ..............................~_ .......... _.........._ ........ _..___
E Dallas ...... _. _ _ ................. _...................... _ _ ..................
:= =_~ El Paso .......................................... __ .............. _._ .........._ .... _
_ Fort Worth .........._._.................................................. _... _.....
Houston ....................................._ ........... _..........................
~ San A ntonio .................. _..........................................................
-:._~_.:~- Shrevepolt ..._....................... _ ............................ _ .. " ... _... "...
Waco ... _........ _........................................ _ ..... _ .............. " _ ._
Wichita Falls .........................................___ ...... _.................
All others .............................. _ ................ _ ......... _................
Total ... _ ........... _ .. _ ....... _ ..... __ .......___ ...... _.._..

l:::;"

Nl;,l"

l:::; "

:

1,707,985
1,140,355
11,012,647
7,309,368
5,809,856
11,935,082
9,253,779
7 4,821
1,,378,51
2,525,968
22,144,362

1,572,739
1,014,014
8,583675
6,310,727
5,161 886
10,195,463
, 68,8 0
6,117,!J33
1,378,112
2,9 63 3
20,341,451

+ 8. 6
+12 .5
+ 28.3
+ 16.8
+ 12.6
+17.1
+ 4.3
+ 20.5
+37. 0
- 14.8
+ 8.9

1,641, 6
1,105,551
10,577,800
6,939,51 6
5,718,006
11,728,743
8,889,313
7,296,529
1,913,831
2,458,558
21,639,565

+4.0
+3.1
+4.1
+5.3
+1.6
+1.8
+4.1
+ 1.1
-1.3
+2.7
+2.3

111

82,102,741

72,508,697

+13.2

79,909,278

+2.7"

_

~

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3
3
7
5
4
4
6
4
5
8
67

_

§
§

~==
=
=_~
~

==~§=: :=

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FAILURES
The business mortality rate during December
showed a sharp increase as compared with the previous month, but was considerably below December,
1921. There were 129 failures during the month
with liabilities aggregating $2,118,607, which compares to 83 defaulting firms during November with
a total indebtedness of $1,361,108, and 197 suspensions in December, 1921, involving liabilities amounting to $4,307,254.
There were 1,408 failures with a total indebtedness of $33,262,896 during the year 1922, as com-

pared to 1,491 defaults in 1921 with liabilities aggregating $34,414,776, reflecting a slight decrease in
both the number of failures and the amount of
liabilities involved.
The accompanying chart shows the major survey
of the business cycle as reflected in commercial
failures of the Eleventh Federal Reserve District.
Commercial failures show an inverse correlation with
the business cycle, that is, when there is a boom in
business commercial failures are few and the lia·

10

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
ation. However, when the creditors once pass the
worst period they again press the debtor firms and
the failure record takes a decided upward trend and
reaches its highest level. At this time the majority
of the weaker firms are forced out of business and
the stronger finns survive and are able to do a
larger volume of business. An expansion of business appears, confidence in the future is restored,
and business assumes more nonnal proportions. In
this district failures reached a low point in September, 1919, when there were only seven failures with
liabilities amounting to $48,883. The first indications of the depression were in February and July,
1920, when some large failures occurred, but these
were to some extent augmented by seasonal quietitude. However, the real break came in October, 1920,
when the liabilities of defaulting finns amounted to
approximately $3,000,000. Throughout the year
1921 failures continued large, but there was no definite trend. With the passing of the fall trade season a definite upward trend was apparent during
November, and each succeeding month showed large
increases, which culminated in February with 207
failures and with the liabilities of these finns
amounting to $5,889,143. Since that time failures
have shown a definite downward trend, indicating
that business is reaching more nonnal proportions.

bilities are small, but during a depression period
the reverse is true. This is due to the fact that
during a period of prosperity the elements of incompetence and lack of capital (the two major causes
of business failures given by R. G. Dun & Company)
do not enter as a large factor in the administration
of business. Rising prices enable the merchant to
buy, hold for a while, and then sell at a large margin of profit. Capital is a negligible factor at this
time because money and credit are easily obtained.
However, when the period of prosperity has about
spent itself the jobbers and retailers realize that
business is waning, consequently they cease to place
forward orders with the result that the manufacturing establishments, which have ben running at a
high speed to supply the abnormal demand, suddenly
find themselves loaded with merchandise produced
at a high cost and with no market. It is at this time
that the firms which have over-extended credit and
have over-borrowed are forced to suspend business.
One failure leads to another, with the result that
failures follow in rapid succession. For a while
failures are numerous with the following period
showing a let-up with no definite trend. During this
period the debtor firms are not pressed hard for
payment, for the creditors themselves are generally
in a shaky condition and are afraid to press the situ-

T'h.ouland3..J
oj
Do,,,,,,,

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3000

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900
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600
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10

THE NUMBER OF COMMERCIAL FAILURES AND THE AMOUNT OF LIABILITIES INVOLVED IN THE ELEVENTH
FEDERAL RESERVE DISTRICT DURING 1920, 1921, AND 1922

11

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

g lllllllll llUlllutl lllnm UUlllll11l1JlIIlIIlIlIIJllllIUlIllIlIlIJ llIIl ll lIllIlI lIlIllIllIIl1II IIIUI IJ IIllIlIU . '1II11I11Il1 utllll uttl I IlUIl I IllIll I IltIU I lIIlIIl1ll1l11 l l1iIllI Il Ill II Utlll llllllUlI ll lII l lIlI1II II III II I I Ull llll lll llfllnll llll lll llll lll l ll i llUlltrllUflnlll lllnnm r lllHHl IlitltmllUlllml l rulltl l ll~

COMMERCIAL FAILURES
Plleventh Federal &ilieJ'''e DiBtrict
1922
Num~· ·Yiabilitie.-

Number

Liabilities

January ....._.........._............ _....
February ........_._....................
March .. _. __ ...........................__
April ...... _.__ ...........__ . __ .....
May ._...........__ ..... _.........._.......
June .. ____ ............. _ ..... _ .......•_
JUly ......._ ........ _..........__ ..... _...
August ...._ ........... _..__ ........ _
September .. __ ........ _ ._.........
October _..._ ........ _.. _._............
November . ___ ... ____ . __ .......
December ._._ ... _.......... _..... _..
~

A U Federal Rserve Dist.rlels

1921

207 $ 4,326,594
207
5,889,143
107
2,121,725
167
3,865,301
84
2,175,351
114
2,481,679
64
1,230,581
85
5,198,294
70
1,480,222
91
1,014,291
83
1,361,108
129
2,118,607

155 $ 3,359,871
137
2,117,068
98
2,702,583
98
2,905,847
92
1,851,774
105
2,588,787
114
3,778,098
137
1,991,284
104
2,872,281
109
2,455,126
145
3,484,803
197
4,307,254

Total, 12 months..............

1,408 $33,2 62,896

1,491 $34,414,776

1922

Number

Liabilities

2,723 $
2,381
2,463
2,167
1,960
1,740
1,753
1,714
1,566
1,708
1,737
1,814

1921

Numw

LiablllUea.

73,795 780
72, 08,393
71,608,192
73,058,637
44,402,886
38,242 450
40,010,313
40,279,718
36,908,126
34,647,438
40,265,297
52,069,021.

1,895 $ 62,186,631
1,641
60,852,449
1,336 67,40 ,909
1,487
38,667,769
1,356
57,066,471
1,320 34,639,375
1,444 42,774,153
1,562 42,904,409
1,466 37,020,837
1,713
53,058,659
1,988 53,469,839
2,444
87,502,382

23,676 $617,896,251

19,652 $627,401,883

E

t"'""""'''''''''''"''''''''"IIII'"I''"''"'''"I11I1""'"II IIII"II''"'''''OII''IIIIIIIIIlIillIlIlIlI'"I1I1WII'UUWIIIIIIIIIJIUUIllIIU,"UIIIIIIIHIIIIIIIIIlIlIllIIIIIIIIIU.II,""",UIII1'1I1I1I1I11I1I1I''''"III"IIIIIII"'"IIIII"IIII'"'"lIIillllflllllll l llln llnlfmlllll''"''" lIfll1111111..1

PETROLEUM
The production of crude oil in the Eleventh Federal Reserve District during December reflected the
increase in drilling operations. Texas production
showed a substantial gain in the month's output, but
Louisiana felt the effect of continued dullness and
the production in that state again declined. The
output of Texas fields amounted to 9,550,720 barrels
in December as compared to 8,975,255 barrels during November. On the other hand, Louisiana production declined from 2,841,180 barrels during November to 2,723,260 barrels in December.

cember amounted to 765,425 barrels, representing a
daily average flow of 24,691 barrels, which reflects
a net gain of 68,675 barrels over the November yield.
The recovery of oil in the Burkburnett field showed
a slight decline during the month, having fallen from
806,700 barrels in November to 800,265 in December.
The decline in production evident in the Haynesville
field for the past two months continued during December, when the daily average output for that field
dropped from 51,827 barrels in November to 45,025
barrels during the following month.

The Texas Coastal fields led in the increased recovery of oil, the December output being 3,339,305 Drilling
Renewed drilling activity featured
barrels as compared to the November total of 2,747,- Results
in all Texas fields, but dullness con2000 barrels, or a net increase of 592,105 barrels durtinued to prevail in Louisiana. There
ing the month. The West Columbia and Goose were 509 completions during December, including
Creek fields showed heavy increases. The produc- 351 producers yielding an initial flow of 59,114 bartion of the Central-West Texas fields declined 79,085 rels, which compares with 371 completions during
barrels during the month, being the only group of the previous month, of which 259 were producers
Texas fields to show a decreased output. The daily with a flush production of 51,460 barrels. Texas
average yield of the Mexia-Currie field declined completions for December numbered 462 wells, 317 of
from 72,221 barrels during November to 67,072 bar- which were successful, and had an initia:l flow of
rules in December, showing a loss of 5,419 barrels in 52,019 barrels, which shows a substantial increase
the daily run. The Stephens County area showed a over the 291 wells completed during November with a
further loss in production, dropping from 1,041,940 flush production of 47,770 barrels from the 193 probarrels in November to 998,450 barrels in December. ducers. The Central-West Texas fields completed
The December output was the smallest total recorded 162 wells, out of which 100 were producers, adding
in any month since January, 1921, during which a flush production of 17,271 barrels. There was litmonth that field reached its peak production. The tle development in the Mexia-Currie district during
Ranger-Eastland field remained on about the same December. While 26 wells were completed, only
production basis as during the previous month, but nine proved to be succssful and they had a flush prothe Moran-Shackleford County field almost doubled duction of only 655 barrels. Stephens County had
the amount of oil produced during November.
six fewer completions during December than durActivity was renewed in the North Texas fields ing the previous month, but the combined initial
during December and th e output of those fields in- yield of the 15 producer s completed during December
creased 47,625 barrels over the previous month . The was practically twice the amount obtained from the
total output of crude from the Electra field for De- 20 producers completed during November. While

12

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

the wells had a large flush production, they soon settled to a much lower producing basis. Development
in this county at the present time is at a low ebb
and the new production being added is not sufficient
to offs~t the decline in the old wells. However, the
discovery in December of oil at a depth around 4,000
feet in the northern part of the county has caused
many wells to be deepened. The Ranger-Eastland
field contributed 27 new producers with a combined
initial flow of 2,985 barrels. The Moran-Shackelford County field scored 56 completions, including 33
producers, with a combined initial flow of 4,925 barrels. The new production added by this field during
November amounted to only 880 barrels.

initial yield of the new producers. Young County
reports about the same number of new producers,
but the initial flow increased from 1,625 barrels in
November to 2,685 barrels in December.
Development in the Gulf Coast fields comprised
75 completions during December, including 59 producers with a combined flush production of 23,491
barrels as compared to 41 completions during November, of which 27 were producers, yielding an
initial output of 25,810 barrels. Drilling in the
Haynesville (La.) field continued at a low level, only
eight wells being completed, all of which were producers with an intial flow of 905 barrels.

Following the substantial boost in the posted
price of crude oil during the latter part of November drilling activity in the North Texas fields has assumed larger proportions. There were 148 completions during December as compared to 107 completions during the previous month. The new production added from the 104 producers completed in December amounted to 9,301 barrels as against 8,645
barrels obtained from the 81 producers completed
during the previous month. The Burkburnett field
contributed 22 completions, but only 10 were producers, yielding a flush production of 225 barrels.
While the Electra field scored more completions and
producers than during November, there was a decline
of 460 barrels in new production, owing to the small

Crude Oil
Prices

The crude oil market continued to
work to higher levels during December. The price of Mexia crude has
been advanced from $1.25 to $1.55 per barrel
since the first of D~cember. During January new
schedules were announced for Texas fields, showing an advance of 20 cents per barrel for oil bought
on a gra ity basis . Corsicana light and Thrall oil
were al 0 increa ed 20 cents per barrel. Corsicana
heavy was rai ed from 65 to 70 cents per banel.
The North Te,'as refinerie are paying from 25 to
35 cent per barrel premium on spot crude. The
higher prices now being obtained for crude oil gives
a brighter outlook for the oil indu try during the
coming year.

~IIIUlltlljllllllnlllllllulllllllllllllllllllnlllllllUIIJJJJUtllllilllllllllllllllllllimIDlllltlllIIlIllllIIl'UlllllllltJlllllllllllllllllllUlinnU llllllllllnlllllllllltllllllllllnUIlIUIiUlILtUlJll l llllllllmntnUIlIIllnnl ll lllllllllnmillllnll1U1ltl1f11UlllllUlI l l 1IIIllunnlllIllIUlUlUn ltLIUIIIIIII("E

OIL PRODUCTION
Total

Increase or Decrease

November

December

Daily Avg.

Daily Avg.

Total

Daily Avg.

Tow

Fielo
N orth Texas ................._ _........ __. ......... _...
.....
Central-West Texas ....._......~._ .................
Texas Coastal.. ..............._................... _._ .....
San Antonio District .. .. __ ............ _..........
..
..........
L aredo District ............. .............. _

2,049,985
3,925,210
3,339,305
118,110
118,110

66,128
126,620
107,719
3,810
3, 10

2,002,360
4,004,295
2,747 2 0
109,600
111 ,900

66,745 Inc.
133,477 Dec.
91,573 Inc.
3,650 Inc.
3,730 Inc.

4.7,625 Dec.
79,086 Dec.
592,106 Inc.
8,61 0 Inc.
6,210 Inc.

617
6,857
16,146
160
80

T otals, Texas ............... _ .....•...... _... _...._ ··.··
North Louisiana.............. _ ... _._........._ ... _

9,550,720
2,723,260

308,0 7
87,847

8,975,255
2,841,1 0

299,1~~ Inc.
94,70 Dec.

676,465 Inc.
117920 Dec.

8,912
6,861

Totals, 11th District....................................

12,273,980

395,934

11,816,435

393,

678,945 Inc.

9,431

_.-_

3 Inc.

1
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1111'"""""11'"1111"'""111111""1111""11"""""111,,1

I
_

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_

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ITum1ItIIIlIlIUIIIII1I1IIUUIUUlnunlu,nUllluuumUlllllllll lllrlIII II UIIUIIIIIIII1I ''1IIIIII UU1 I, UlII I Hluui l rni!nl ,uI IU

1_:
_

DECEMBER DRILLING RESULTS
Field

w
l:!:,;';,l'e ::' ·or;;;;;;::.:::::::::::::::::::::::: ::

~ H;:!~ii!~::~E~~~~t:::::::::: :::: :': : ' : : ': : : : : :: :: : : : : : : : : : : : : : : : : : : : : : : :: :
I
~ Texas Wildca

~_=i
_
__

E

Producers

Completions

_..... __ ...

a • ••• _

. . . . .. _ • • • • • • • • • •

_.~

_

_ • • • • • ___ • • • • • • • • • • __ • • • • _ . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .

Totals, Texas ......................................................................................................
North Louisiana .............................................................................. - ................
December totals, district................ .................... ................ ............................ ....
November totals, district ....................................................................................
*IncIudes 9 gas wells.

Failure,

Initial

:~
r~

:~

6

23

462
7
"3-7:1
9

817
4
2: 51
39
6

145
115:
'

29

U

:~
16

12

Production

,~~~: :=_-~
2::iU ~
116 ~

!

52,019
;;:;;; :-:1
__

=
E

~mllllfll!uIlIIUUIII"lIIllllIIulllllnnnllnflflllnIIIllIlIII UlljltllI111l1111l1I1UIlIHIl1IIItIIlmmUII'tlIIIIIIIIIIIIIIIIIIU,lIIlllIlIlllIum" IUIIUIIUtllUUUlllI1Wl1lttIiIiUUlllltIIIlIIllIIlItlIlIlWumllt!lInln,mmllliunuUUllllllUll1IIIIJUlllIIl1rJ1nnIlIlUU\InUlIIIIIIIUtllrnUllmu~

e

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

13

~IU ll lmUlnll lUJ I IIIU II IIIUll l llU lfl llllllUlIlJll lIIUIUllnTIIlllllUllht1 l l11lln l IUUl IIIlIlII lI lIIlIlII lIlIlIl lI lllllll tiUUUUUUllIlIlIIIIIlIIlIIlIlI l lIUlIIIJlllI lIJ lIIlIlIIlIIlIIlllIIlllII1IIlTIIlIU I UUIlIfIIlUUIl1ll11l1l1ll1UIIIJllmlllllmU ((UIIIIIlU IIIJlJI IIIII1 I I11UUllll l1 f11l11l1 llIlIllI UIIIUo m.::

!

T~q

'1;,;'

~ g~~~~~:~: ~:~y .. ::::::::::::::::::._::.-...........................' .......... _ $1.,05
.....
0
6

§
~
'===

Texas Coastal fields ....... ,............... _
............... _ 1.25
Mexia ............. -.................................... _
............ _ 1.55
North Texas ......................... _ _
... ...................... 1.80

C~~~E PRl~:.;=.
OIL

';;,;'

Caddo (39 gravity and above} .................... $1.80
Bull Bayou (38 gravity and above} ............ 1.40
Homer (39 gravity and above} .................... 1.80
Haynesville (39 gravity and above} ............ 1.80
De Soto Crude ............... _._ ................................ 1.60

$1.30
.95
1.25
1.00
2.25

~~~;" I

$1.85 ~
1.90 ~
1.85 E
1.85 ~
2.00

-

~l l m Ull tllllll l n .. Ul l mllrlllllllllllflIIIllIIIUIlUllJmlllllllll lfllllll lllUl l ll IIIUIIIIIII"IIIIIII I'"IIIIIIIIIIIIIIlIlI1I1 ..UI ,,1I1II1 11I 1II11I11I1 11 1II1II11111111111111 11f11I 111 1111111 11111111 1111111t1111' IIII11 IUIIIUlfllIIIIIIIIUI 'IJnUllllllll lmUlllunU ll mulltllUl t,m ll llllUll lliII WII UllltUIIIH III(.:

(Oil statistics compiled by The Oil Weekly, Houston, Texas.)

LUMBER
A further improvement was noticeable in the lumber situation in the Eleventh District during the
month of December. 'l'he car shortage which had
limited shipments during the fall months was completely relieved during the month as the mills were
able to obtain all the cars needed for shipments.
While production was curtailed to some extent during the month on account of the holiday closing of
some mills, both orders and shipments were greater
than production. The actual production of reporting
mills during December was 16 per cent below normal
production as compared to 10 per cent during November. Shipments for the month were 9 per cent
above production as compared to 3 per cent during
the previous month. Orders increased from 89 per
cent of normal production during November to 96
per cent during December. The unfilled orders on
an

r.

I foI Clr AI pr fI1ayJ"'Til:Ju l y Aug Sl'f$lOct Nov Oc-c

-t~")

/\

120

/

I 10

V

100

70

60

so
40

\

I

90

80

\ !7.?Z

-

\

/

.1
V _ ,,..

\

V
1
\
- - .\) , /

I

~

\

'......

I

/V\

.-

,,

,

,-

--~

.

8 21
,

. -- -,

,

,,
... ,

the books of 40 mills on December 30th amounted
to 93,990,532 feet as compared to 89, 572,930 feet on
the books of 45 mills on November 29th, reflecting
the tendency of retail yards to place their orders tor
future delivery. Stocks at the mills 011 December
30th were 7 per cent of normal as compared to 5
per cent of normal on November 29th.
The lumber market continued steady during the
month despite the ample supply of cars which made
possible prompt deliveries on all orders. ,
The chart appended below shows the volume of
orders received at lumber mills during 1922 and 1921,
computed in per cent of normal production. The
effect of the 1922 building boom is clearly evident
from the chart, which shows that during five months
of the year orders received at the mills were greater
than normal production. The effect of the car shortage, which appeared early in the fall, was evident
in October orders, which took a violent drop from
September orders. Retail yards greatly reduced
their orders at this time, due to the fact that they
could not obtain prompt delivery and did not want
to permit their orders to accumulate. In the following months, however, orders have increased, due to
the improvement in the car situation.

;\UlllltlUl I1H"lltIllUUIIIIII.HUU UIIIIIlIIIUlJfllnl.UilWII1IJUIIllIllUllUUU1 UUII IUIU.l IIIIUlllll nll l lUlJllll lUl lllll lll mIUlUlIIIIIII Jl!
.Hl

~:= ~=

_

;

(1i~·'::':""DECEMi3ER

PINE MILL STATISTICS

~:',i'I;)C:'lf)

:
_

Number of reporting mills ... _........
40
Production ............... _
.......................... 89,862,475 feet
100 Pel' Cliln"C =Nonnu.1 ProductIon
~":-= ,= Shipments ________________ ._ .. _____
97,779,206 feet
_ Orders ........ _ _ _._ .. _
.. ....
.......................... 102,844,428 feet
Unfilled orders, Dec. 30th ....... _ 93,990,532 feet
....
20
Normal production ................. _
........ 107,308,021 feet
Stocks, Dec. 30th .............................. 272,139,390 feet
_
I 0
Normal stocks ......... _
........................292,656,260 feet
Shipments above production ...... _... 7,916,731 feet= 9%
o
~
Actual production below normaL. 17,445,546 feet=16% _
ii Orders below normal production.. 4,463,593 feet= 4%
LUMBER ORDERS AT PINE MILLS DURING 1921 § Stocks below normaL ..................... 20,516,870 feet= 7% E
AND 1922 (PER CENT OF NORMAL PRODUCTION)
i 'lIltutli4U IIMfmllluuHllna'.. l tlJlllIIl. . .mm'lIIuMu...... II:t...... !IIIJIUllillUI.UIIIUlUiUnUUltllIlIUUIlUIUUUjjUu ...... UlJh
-::i

30

=

=, _

· . 0 _ . _ _ _ 0 0 __ 0 __

14

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
BUILDING

The number of permits issued at the principal
cities of this district declined from 2,215 during November to 1,570 during December, but the valuation
of December permits amounted to $9,672,787 as
against $3,918,034 for the previous month. This
large increase in the valuation was due to the fact
that Fort Worth issued a blanket permit on December 30th for $5,100,000 covering building in the
newer portion of the city for which permits had not
previously been issued. On July 22, 1922, this city

increased the city limits from 16.5 to 39.8 square
miles and the blanket permit largely covered the new
building in that section. However, aside from this
permit for $5,100,000 the valuation of building permits showed an increase of 16.7 per cent over the
previous month. While there were 1,307 fewer permits issued during 1922 than 1921, the aggregate
valuation of permits issued in 1922 was 27.6 per cent
greater than in 1921.

==,"UUIIIUIIIIIUI I 'IUilUlllll l llllllllnIlU Ul U IIUIIIUIl1 I1I1II U1l1t1U IIIUIII II UJU IiU lUn 11 IIII III1UlUI.IIIl It IlIIl IlIltIJJllUl lll ttI IlI IltIi II Ulll ll lltll lllll l1l ll lllll lllllllllllIIIII I11I11I III UlII ll lI lI ilHtlll ll flU nn lllUfIl l lIIU I I"UUllllliJ Il IUIIIIU n ii lll tUll 1III III IIIIUIII IUII III III U ~ 'ln n llll nll l~'

i
:_;

'l'WE.LVJ.~

BUILDING PERMITS

=
-

December. 1922

§
=
§
=
~

No.
Va.lua.tion
33
72.645
97
108.070
244
1.184.198
~O
805.884
182
6.859.024
258
74,618
191
714.068

~

AUI Un ______
Beaumont ...... _.. _
Dallas ..... _ ........_
E l PWIO •__.___..
Fort W orU! ..__ .._
Gn)\relI ton .......__
H ol18ton .................

November. 1922

I

Inc. or

No.
Va.lua.tion
Dee.
29
52.500 -I38.4
84
61.291 -I68.2
896
1.415,222
16.3
88
165,03() -I97.3
201
478.428 -1-1,124.6
1150
74.999 0.6
610
671.197 -I6.4

December. 1921
No. \valuation
31
94.100
731
76.665
228
597 .405
87[
96.229
119
163.968
345
178.473
4361 1.103.266

Inc. or
Dee.
22.8
-I- 34.6
-I- 98.2
-I- 217.8
-1-3.473.3
58.2
35.3

1922
No.
Valuation
375
684.297
1.253
1.344.884
4.552 18.646.988
1.164
3.294.513
2.520 12.128.722
4.113
2.131.288
6.480 13.418.469

I

I

MON'l'gS
1921
No.
Valuation
461
1.167.667
1.678
2.341 ,184.
4.453 15.0()O.ZOG
1.606
4.2'18,4 2
2.221
4.6 9,272
5.278
t.O B7.0~Z
6.874 10.400.610

Inc. or
Dee.
- 41.4
- 42.8
-I- 24.8
- 23 .0
-1-160.9
-I- 10.0
-I- 29.0

~
-

~
~

=
=

§

I~~:~= ,.~ . !!!~!! ,.~ . :!!:~: ,:!! ,!~I . ~!:~! ~ ::!: ,~! ,!:~:~ ~:~ .!~!~ ~ ~! I e
-

§

~

-

§

' '''''''''''''''''''''''''''''''''''''''''''''''''''''""''''"'''''""'"111111""'' ' ' '"'' "111'' " """''"""""""""""",,'' "I1,,[1IUIIIIIIIIIIIIII[IIIII1I1I1"""I1'' "I1"'"'"'''''"1111111111,"",",""'""'"'"11111"""""'"''''''"''''"'''''"'''"11"","",""",,,"",11111''''"".-

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

15

SUMMARY OF NATIONAL BUSINESS CONDITIONS
Compiled by ihe Federal Reserve Board as of January 25.

Iq2~.

Production and prices remained relatively constant in December, while trade and credit showed
the usual increases in the holiday season, followed by declines in January.
PRODUCTION
The index of production in basic industries, after rising rapidly since last August, showed a slight
recession in December, though production was maintained at a level near the peak of 1920. The output
of pig iron and coal continued to increase, but the production of certain other commodities, particularly
of cotton textiles and flour, showed declines. In southern districts the building industry continued
active and in all parts of the country much new construction was projected.
Railroad traffic continued heavier than a year ago, though the seasonal decline in carloadings and
the reduction in bad order cars partially relieved freight congestion.
Employment at industrial establishments made a further advance in December, accompanied by'
wage increases in certain industries. Some shortage of labor in the eastern districts was still reported,
but in the Pacific states a substantial surplus of unskilled labor was indicated.
WHOLESALE PRICES
The general level of wholesale prices remained unchanged in December. Among various groups of
commodities the price tendencies of recent months were continued. Prices of farm products, cloth chemicals, and house furnishings registered further increases, while fuel and metal prices continued to decline.
During January a number of basic commodities advanced in price, and cotton, rubber, and lead
rose to the highest points since 1920.
TRADE
Wholesale trade in most reporting lines showed a seasonal decline during December, but was considerably larger than a year ago. Farm implement dealers, however, reported larger sales than in November, and more than doubled their December, 1921, business. Retail sales of reporting stores during December reached the largest volume in the last four years.
BANK CREDIT
Dividend interest payments and the disbursement of government funds in connection with the
redemption of victory notes and war savings certificates, together with the usual decline in the demand
for currency after the holiday season, were attended by a large increase in the volume of new security
issues and by somewhat easier money conditions. Open market commercial paper rates in financial
centers, which were 4V2 to 4% per cent in December, declined to 4% to 41;2 per cent in January.
Member banks in leading cities reported an increase in demand deposits, an important factor in which
was the usual seasonal flow of funds from country districts to financial centers. While the volume of
loans on stocks and bonds decreased in the first two weeks of January, there was a somewhat larger
increase in the investments owned by the banks.
At the Federal Reserve banks the principal change between December 20th and January 24th was
a reduction of $230,000,000 in Federal Reserve note circulation caused by the seasonal decline in currency
requirements. Reserves increased $65,000,000, while earning assets declined $171,000,000. These changes
are similar to developments during the same period a year ago, although the decline in earning assets was
less than last year.

16

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
BANK CREDIT

BANK CREDIT

AL.L. FEOEfW... RESERVE BAIlKS

800 MEMBER BANKS IN L.EADING CITIES

MILLIONS OF DOLLARS

~ IL~OIf$

400

f"OOO

3500

.

!;::;t
~
.,.' . .

:v.I•

, ~.

'0 '

BILLIONS OF DOLLARS

14

..

' •• LOANS AND
\ DISCOUNTS

I

.~

3000

~

12
DCPOSfTS
D;:7

...

11. ......... ::
J,

-;1

•• f"'~
I

r;'

4

f

·.1

•

~

2000

..
•
.

~ ,~

~.
Io

6

4

12

8

1500

..

'_"

~

"

1500

~

-·0

~I \

•

"

10

zooo

\~

f

Z500

1000

I .....

BIUIONS OF DOLLAIIS
IS

16

3S00

J \\\
...
"

3000

2500

OF DOLLA RS

0

CARNING

ASSETS

--:·;'''t'.' • 1
."
':'\! t

1000

IIIV£STltt£NTSl..~IIt'

Tfltf!

500

o

500

1920

lSI9

192.1

1922

2

0

DePOSIT'S ...

o

1923

~

.--

1 ~1 9

4

~

2

19~2

1921

1920

192J

0

INDEX OF PRODUCTION IN BASIC INDUSTRIES

PRICES

COMBINATION Of 2Z INDIVIDUAL StRlrs
CORRECn:O FOR SEASONAL VARIATION

IHD£X NIJ"'BERS Of WHOL.ESALE PRICES
U. S. BUREAU OF LABOR STATISTICS
P[RC(~T

Cit.·../.,.. ,.·

••,-

( MONTHLY AYERAGE lSI.! ./DO )

300

PfRCEHT

300

(

PCRCDIT
16 0

PtR CENT
160

I'"~ a /DO)

o

I

25 0

20 D

IV

.~

250

r\,

12 0

200
100

f\

ISO

'-

,-.-

150

.-/

1\

AJ

-VV -'

I 20

~

\

80

~

/'

/
vv'

I 00

80

~

6
100

o

100

40

20

50

40

2o

SO

LATE'lT FI f:o "P£-

o

o
1919
Note:

1920

1921

1922

1923

Base Adopted by United State. Bureau of Labor Stati.tics

o

0

1919

1920

1921

192.2

1923