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~\I IIIIII I I I IIII II I I I I I IIIIII II I I ' I I IIIII'I'III I II II II 111 1 1 1 111 1 1 1 1111 1 1111 1 11 11 111 1 11111111111111111 1 1111.1111111'111 1 1111111 11'1111111 1 1 1 111 111 111 11 1 1 11 11 1 1 1111111 1 11 11 1 1 1 1 11111111111111111111 1011 1 111 '"111111111 11 1111111111111111111 1111 11 1111 1 1 1111 1 11 ~ "'I II 'IIII I II I IIII I I I III II I I IIIIIIIIII I IIIIII I 'IIIIIIIIIIII 11111111111111111111111 1 11111 1 1111111111111 111 111111111 1 1 111 111 1 1 11 1 1 111 11111 11111 11111 11 11 1 1 111 11111111 1 111 1111111111111 1111111111111 1I11I1I1I111I1I1I1I11 1I 1I111I 1I 11 1111I1I1I 1 111 1 1I11'g I ~ I MONTHL Y BUSINESS REVIEW ~ OF THE ~ ~ :: ~ ~ :: FEDERAL RESERVE BANI( Of DALLAS :: : LYNN P. TALLEY, § § :: CRAS. C. RALL-W. J. EVANS, Chnirmnn nnd Federnl Reserve Agen t : § Assistnnt Federnl Reserve Agents §§ (Compiled January 15, 1925) ~ ~~ 51 1 1 1 111 1 1 111111 111 111111.1111111111111 11111.11 1111 1111 11 11 1111 11 11 11 111111 11111'11 1 111 1 1 1 11111 . 11111 1 1 .11 1 1 11111 1 1 1 1 1 111 111 1 11 1 1 1111 1 1111111 1111 1 1111 1 11 1111 1,.1111111111111 11111111 111 1111 11 11 1 11 11 1111 1 111111 1111111' "IIII I"II I IIIIIII I II II II IIII~ § 111 1.1111 111 1 11 11 11 11 11111 1 11 111111 11 1 111 1. 1 . 1111111 11 11 1111111 1 11111 1 111 1 11 11 11 111 1 1111 11 11 111 1 111 1 11 1 11. 1111 1 111 11 1 111 1 11111111111 11 11 111 11 11111111.111111 11111 11 11 1 11 1 1111 11 11 1111 11 11111111 11111111,111111.11.,111 111111111111111111 11 111.111 1. 111 11111\; Volume 9, No. 12 Dallas, Texas, February 1, 1925 ================================ DISTRICT SUMMARY This COpy released for pub. lication in morning papers Jan. 31 'l'HE SITUATION AT A GLANCE Eleventh Federn l Reserve District : t!J December Inc. or Dec. November Bank debits to individunl necounts (at 16 cities)............. .. ....................... .. ................................................... $'780,027,000 $710,163,000 Inc. 9.8 % Department store snle9............................ .. .......... ......................................................................................... .. .......... .............. Ine. 49.4 % Reserve Bnnk lonns to member bm,k9 nt end of month .............. .................................................................. .. "$""2,713,179 $ 8,184,654 Dec. 13.4 % Regerve Bnnk rntio nt end of month............ ......................... ............................................................................... 61.0 % 68.6 % Dec. 2.6 paints Bullding permit vnluntions nt larger centers .......... .................. .............. ........... ,............................................. $ 6,922,981 $ 6,712,877 Inc. 21.2 % Commercinl fai lures (number) ................ .. ............................................... ..... .. ................................ ........................ 62 68 Dec. 23.6 % Commercial fnilures (linbilities ) ...................................................................... .. ...................... _................. ,......... $ 868,169 $ 904,820 Dec. 69.8 % Oil production (bnrrels) .................. .............................. .. .... ................................................................................... 13,646,062 12,948,206 Inc. 6.4 % Lumber orders at pine mill9 (pcr cent of normal production) ............................................................ ........ 800/0 98 % Dec. 18 paints 1 11111 1 11 111111 1111111111111111111 11 11 1111 111111 11 111111 11 111111111111111111111111111 111111 111 111 1111 111 1111111 111 1111111 11 111 . 11 11 11 111 1 1111 11 1. 1. 1111111111 11 1111 11 11 11 II 111 1 11111111 1 111 11 11111111 11111111 1111 11 11 11111111111 1111111 1" 111111 Cl I IIIIII § E [!) The district's banking situation showed but little change The laraest December volume of retail distribution ob· tained in ~ecent years and the well sustained distribution during the month. There was a further increase of $28,· in wholesale channels were the outstanding features of 000,000 in deposits of member banks, but the demand for the business situation during the past month. The Decem· credit at commercial banks continued light. Member balllk bel' sales of reporting department stores reflected an in· borrowing at the Federal Reserve Bank remained near the crease of 4,9 per cent over the previous month, were 9 per low level established early in December. The December cent greater than in December, 1923, and closely approxi· 31st condition reports of member banks showed that these mated the large sales During December 1919·1920. Some banks were carrying large cash reserves. While a large lines of wholesale trade failed to show the usual year·end volume of funds has been placed in commercial paper, declines and in other lines the decreases were less than the banks are still experiencing difficulty in finding a de· normal. All reporting lines showed large gains over De· sirable outlet for surplus funds. cember a year ago. Further evidence of active business is The severe cold wave during the past month resulted found in the heavy volume of debits to individual accounts. in considerable damage to the grain and other growing The December debits were not only 7 per cent above the crops, but some benefit was derived from the rain, sleet, and corresponding month of 1923, but were the largest of any snow. The freeze pulverized the soil and left it in good December 'since 1919. condition for plowing and planting. Furthermore, the low Building operations continued active during December, . temperatures have destroyed a large portion of the boll there being a substantial increase in the valuation of new weevil which in turn lessens the probable insect damage projects launched both as compared to the previous month to the 1925 crops. and the same month last year. However, the usual year· While a small surplus of unskilled labor exists through. end decline occurred in the production and shipments of out the district, employment conditions are reported to be cement and lumber. generally satisfactory. Many industrial establishments reo The maintenance of a low business mortality rate in this ported an increase in working forces, while others showed district gives evidence of the soundness of the financial slightly smaller forces . However, the demand for indus· structure of business concerns and presents a marked con· trial labor appears to be well balanced by the supply. There trast to conditions existing in some other sections of the is a surplus of building tradesmen in some sections, due United States where the number of defaulting firms and to weather conditions and the influx of workers from out· side cities. the volume of indebtedness involved continues heavy. CROP CONDITIONS The severe cold wave accompanied by rain, sleet, and snow which prevai led throughout the greater part of the past month and which extended over the entire district slowed up farm operations and did considerable damage to winter wheat and oats, fruits, and vegetables. On the other hand, the precipitation was of material benefit to the growing vegetation and the hard freeze pulverized the soil. However, many sections report the continuance of dry weather or that more rain is needed. Wherever possible farmers have been actively engaged in preparing the soil This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) I MONTHL Y REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 2 for the 1925 crops but field work has been greatly hampered and some sections report that very little progress has been made. The Department of Agriculture estimated that there were 1,822,000 acres sown to wheat in Texas during the fall of 1924, which is an increase of 24 per cent over the 1,469,000 acres sown in the fall of 1923. The acreage sown to oats in the fall of 1924, was considerab ly less than the acreage sown during the previous fall. The seeding of oats was retarded on account of the dry weather and the acreage sown has felt the effects of the limited rainfall. Both wheat and oats have made generally poor progress during the past month except in the northwest and favored sections elsewhere. Recent reports indicate that grain crops have suffered considerably from the severe weather. In the sections where the snow was heaviest little damage was reported, but since the ground has thawed many other sections report serious damage. There is only a small percentage of the cotton crop which remains to be gathered. The census report showed that 4,,760,565 running bales had been ginned in Texas prior to January 16, 1925. An interesting feature of the Department of Agriculture report was that while the production of the 1924 cotton crop was 10 per cent greater than the 1923 crop, the farm price averaged only 74 per cent of the 1923 price, with the result that the returns from last year's crop were somewhat less than those from the 1923 crop. The acreage planted to truck crops in the Rio Grande Valley during the past season showed a large increase and considerable gains have been noted in the shipments of vegetables from the Valley. While the losses from the recent freeze were not so great as were first estimated, late reports indicate that the beet, cauliflower, eggplant, okra, pepper, and squash crops were practically a total loss. The estimated loss to the cabbage crop was about 25 per cent of the young plants. Th.e citrus fruits were also damaged to some extent. Cotton Movements of last year. The exports of cotton through Houston and Galveston during December showed a large gain over the corresponding month It will be noted that stocks on hand at these ports on December 31st were substantially greater than on the same date last year. ""~'~::~":~;:;~:::=:~~:~~;;::::~~:~:1~::f'~~'! Net r eceipts.................. : Exports ........................ : Stocks, Dec. 31st........ 557,021 515,504 ............ 872,481 428.737 ............ Sea son 2,697,879 2,047,557 697,493 Season :: 2.242,652:: 1,986,812 § 288,221: [!} .,I I IIIIIIIIIIII I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111 1 11'1111111111111111111111111111111111111111111 1 1IIIIIII!J If111J111I1I11JJ1111111111l11111t1l1J1111111111t11111111111111111111111111111111111111111111111111111111111111111111111' 1 f § ~ [o'or Great Britain ................ ...... .. .. . ,...................... . :: :: :: For other foreign ports ........ ............... .......... .. For coas twise ports .......................... ... .. ... .. ... .. , In compresses and depots................ ... ........ § Total ........................................ ......... .. .... : • Dec. 31. 192~~483 § 19,800 62,200 6,000 581,510 § [o'or France ................................... .. ......... .............. .. : § GALVESTON STOCK STATEMENT Dec. 31, : • I 1923760 1,100 § 20,900:: 3,000:: 262,461:: 697,493 288,221 ~~ : l!:1 1111111111111111111111.IIIIIIIIIIIIIIIIIIIIIIIIIIIIC111111111111111111111111111111111111111.'111,.1.111111111'1'11111'l!J @1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111".,11III '!!] § !~~:=~~T: :: § HOUSTON COTTON MOVEME NTS December December t.ug . 1st to Dec. 31st : Stoclts, Dec. 31st........ 'iii:!!! .......,.... :: 'iii!!! mtl!! lWi:l!l I ............ 683,299 830,598:: G!.1I11I11I1I1I1I11t1l1l1l1l11l11l1l 1111111111111111111111 II II I If II 11111111 111111 I It II II II II 111111111111111 1111 1111 II II III!) (!JIIIII1III1III1II1I1I1I1I1I1I1UIIIIIIIIIIIIIIIIIIIIIIIIIJIIIIIIIIIIIIIIIIIIHIIIIIIIIIIUIi11111111111111111111111111 11 8 SEASON'S RECEIPTS, EXPORTS, AND STOCKS AT ALL ::~~:~.~ ~~.~~.~s :~:~lr~,:e~9~ a4S~,:"o~ ~ 1 41~,8~"-7~a7s~':~ ~ 2~ • :: Receipts ince Bri ... Exports: sGreat Aug.tain .......................... France ....................................... . Continent .................................. Japan-China ........ .................. . Mexico ........................................ 'rota I fore ig n port".............. .... Stocks a t all United Slates ports , Dec. 81s t .....................,.......................... ., Last 1, 762,068 470,4 34 14,319 4,2 29,031 1,703,844 " :: ·.1:::::. 1,252,227 847,270 4, 207 8,27 5,3 75 • :: :: 9D5,975:: E l llfflllll'II IIIIIII I UIIIII ••• IUIIIIII.IIII"II'IIIII.11111111111111111111111111111111111111'111111111111111111IIIIII!) 0 " 1 1 11111111111 11111111111 111111111111111111111111111111111111111111111111 1111111111 1111111111 IIIIJlIII HIl II 1111111 :: :: :: ~ SPOT CO'l"l.'ON PRICES (Middling basis ) December, 1924 New York .................. ...................... Hi1~.90 I ~~[~~;;:~:~~": : .: .: . : . :.: .:.: :.:..:.':.. iU~ LO~8.15 u~n 110 : § Jan. 15, 192;4.15 iHf :: ~ I [E!u 1111 II 1111111 1111 II 1I11I U" II II III II 11111 III III II II 11111111111111111111111111111111111111111111111111111111111111111 (!) ! @ltUllllllllUIlIlIlIIlIlIIlIlIlIlIlIIlIlIIlIlIlIlIlIlIlIlIlIlIlIIlIlIlIIlUlllllllllllllllti1JIII1I1I1II1I1I1IJIIIJlIIIIIIIII U 11J1IltIlIIIIlIIIlIHlIlllIlIlIllIlIllIlIlIlIlItllIllI 1I11111111111111111111111111'lIllIlIlIlIllIlIlIlIlIlIltllIlIlIllIlIl l~ :: :: § § § : Cotton :: Cotton § (a) : (b) COTTON CONSUMED AND ON HA ND COTTON GROWING STATES t.ug . 1s t to Dec. 31s t December De~~Ubel' Deg~ber This Last 1924. Senson Season cons umed ........................................................................ 855,662 808,466 1,627,844 1,681,251 582,047 on hand at end of month: in consuming establishments .................................... _ ......... . . ......... ... 867,960 1,082,677 ................ in public storage and compresses.............................. ................... .. ................ 4,351,023 8,206,714 ............... UNITED STATES Aug. 1st to Dec. 31st De~~~ber This Last Season Senson 468,789 2,349,580 2,017,899 ................ ................ 1,819,265 4,623,863 1,627,628 8,512,577 :: :: § § ; : :: § : 8.11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1111111 111111111 1111 1111111111'''11111111111111111111111111111111111111111111111111111111111.11111111111111111111111111111111111111111111111111110 COTTONSEED PRODUCTS A stronger demand for cotton oil was evident during the past month. Reports from 73 cottonseed oil mills in this district showed that they shipped 27,844,729 pounds of oil for which an average price of $.09 per pound was received. This compares to an average price of $.0863 per pound received during November. There were 43,604 tons of cake and meal shipped at an average price of $35.42 per ton, which represents a slight decline from the price received for shipments made during the previous month. The average price received for linters during December was $.0445 per pound as against $.04,34 per pound received during November. 011111111 ... 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111118 E § :: COTTONSEED PRODUCTS SHIPPED AND AVERAGE PRICE RECEIVED DECEMBER E § :: l. ~!: .:,:,: -~:" ", , , , , , , , , ,:, , , , ,:;, ~ i[~,: ~1:~ ~i., J s MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS m"' ' ' ' ' ' ' ' ' ::::::''::::''~:''::~~~~:''::~~=''l:::::. Cottonseed received at reporting mills (tons) ....107.116 Average price per ton paid for seed ( including freight) ................................. _................ ................. $41 .07 148.688 $87.99 :;1 1 11111111111111111111111 111 11111 1111111111111 11 111111111111111 11 11 11111 1111111111111111111111111 1I1I1I 1I11I1I1f1l 1l 11l1 ~ m ' I ' 1111111111 11 111111111111111111111111111 1 1111111111111111111111111111 11 1.,111111111111 111 11111 111111 111111111111.,I I I [!) § STATISTICS OF COTfI'ONSEElD AND COTTONSEED PRODUCTS :; T exas United States Aug. 1st to Dec. B1st Aug. 1st to· Dec. B1st This Last This Last Season Season Season SeRson Cottonseed received at mills (tons) .................. 1.339.000 1.190.000 8.762.000 2.728.000 Cottonseed crushed (tons) ........................... . 2.643.000 1.997.000 827.000 900.000 Cottonseed on hand 742.000 (tons) ........................... . 871.000 1.224.000 443.000 Crude oil produced (pounds) ..................._ 269.993.000 281.198.644 760.849.000 686.666.586 Cake and meal produced (tons) ... •...... _... 418.000 388.666 1.161.000 912.669 liulls produced (tons) 261.000 243.664 726.000 668.266 Linters produced (600lb. bales ) ................... . 402.966 169.647 496.000 168.000 Stocks on hand Dec. 31st ........... ..................... Crude Oil (pounds) ........ 81.426.620 68.988.000 104.606.092 :; Cake and meal (Lons) 29.000 66.996 166.000 218.009:; :; !-Iu lls (tons) ...................... 86.000 88.474 213.000 186.088 :; : Linters (600-lb. bales ) 42.000 49.567 167.000 161.189 : 8 I v 1 were heavy in the coast section, but only nominal elsewhere. Cattle were reported to be in poor to fair condition and indications are that they will be late in going to market. '111111111111111111111111 1111 1111 111 1111111111111111111111111111111111111111111111111111111111111I 1 11111111 11 1111111111 @ LIVESTOCK The district's ranges received considerable benefit from the rain, sleet, and snow which fell during the latter half of December and the early days of January. However, spotted conditions still exist. Some improvement was noted in range conditions in southeastern Arizona and stock water has been replenished. Sheep and cattle ranges in New Mexico showed a further deterioration during the past month, and was reflected in a decline in the condition of cattle and sheep. Heavy precipitation occurred in part of New Mexico which partially offset the dry fall, but other parts are still suffering from drouthy conditions, particularly in the southeast and portions of the southwest. The condition of Texas ranges on January 1st was estimated at 74 per cent of normal as compared to 70 per cent on December 1st and 89 per cent on January 1, 1924_ However, more rain is needed for the ranges and much feeding has been necessary. While the condition of cattle has shown some improvement and sheep have about held their own, the past month has been generally unfavorable. Losses from exposure TEXTILE The textile industry is slowly but steadily emerging from the inactivity experienced during the past year. The demand for goods is broadening and prices are generally firm with an upward tendency. Tne reporting mills consumed 1,686 bales of cotton during December as compared to 1,4.75 bales in November and 1,615 bales in December last year. The production of these mills amounted to 806,875 pounds in December as against 795,603 pounds in the previous month and 874,664. pounds during the corresponding month of the previous year. Or- The heavy movement of cattle to the Fort Worth market continued during December when receipts totaled 113,972 head, or only 7,4.02 head less than the large number yarded during the previous month. While calf receipts were considerably less than in November, they were almost double those of a year ago. The supply of hogs showed a substantial increase, being the largest of any month since March, but was slightly less than the supply offered in December last year. Sheep receipts were more liberal than in either the previous month or the corresponding month last year. Despite the heavy receipts, the cattle market showed some improvement. Heavy calves of good quality gained about $3.00 over the November close, and the best light grades advanced to the extent of $2.00 to $2.50. The hog market at the close of the month showed an advance of $1.40 to $1.50 over the previous month's close, the top price of $11.10 on the last day being the highest recorded since October. The receipts were never sufficient to meet the demand and packers were continually drawing supplies from other centers. Sheep and lamb values reached higher levels during December. Lambs sold as high at $14.25, while good wool wethers brought $9.75. Movements and Prices I: " " ~;~ '~: : : .:::~~~lt:'~f~t~l~~~ii~F" i~:8;~.:16:!7';6,"1: Sheep ....... ..... 20.632 G 16.966 [ llllllllll llI lllllllll llllI l llIlI l lllll lllllllIlIlIlllllllllI(IIlltlllllllllllllllllllllllllllllllllllllllllllllllllllilID r.:'I'I1I I ,lll llll l lllllllll l llllIllltllllllllllllllllllltllllll1I111111111111111111111111111111111111111UIIIIIIIIIIIIIIII(!) COMPARATIVE TOP LIVESTOCK PRICES Beef steers .......................................... Stocker steers .................................... Butcher cows ....................... .... ........... Stocker cows ...................... ' ... ......... Calves .................................................... Hogs .............. ....................................... Sheep ............ ...................................... Lambs ... ,...... ......................................... E December /December November 1924 1928 192~ $ 8.00 $ 7.76 $ 6.60 7.00 7.10 6.86 6.50 6.26 6.00 8.26 4.00 8.26 7.35 7.25 6.75 11.10 7.70 10.26 9.76 7.60 8.60 14.26 12.00 13.60 III IIII IIII I III IIII I IIIIIIIIIIIIIIIIIIIIIIIIIIIII I II I I1111111111111111111 '1 111"1 1111111 1111111 1 11111111" , 1111111111118 MILLING ders on hand at the close of December were slightly larger than those on hand at the close of November and stocks on hand were somewhat smaller. I::: 8 "'~ ~ ·:'::,::"'·:~~~~~~~~~~'::~~;i::~:i~;":~;;~4·:1 Numbe r I:lpindles active ................... . Number pounds cloth produced ..... . 11111111 11 1 111 1 11ltl lllll llllllllllllllllllll llll lllill1111111 1. 11111111111111,.11 1111 11 1 11111111111 1 1,111 1 11111I1I11.la WHOLESALE TRADE The year-end quietitude which ordinarily develops during Christmas shopping and the severe weather during the latDecember in the wholesale channels of distribution was ter part of the month, the December distribution in most less marked than usual this year. Stimulated by the heavy lines of trade greatly exceeded the earlier expectations 4 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS and presented a marked contrast to the slow movement of goods during the two previous months. Every reporting line of trade showed a large gain over the corresponding month of the previous year and two lines,-farm implements and hardware-evidenced a gain over November. This heavy year-end movement enabled wholesalers generally to clear out their stocks of seasonal merchandise which they had been unable to move earlier in the season and to close the year with lighter stocks than was anticipated. The orders received at wholesale establishments during the month represented largely fill-in orders for immediate delivery as the unexpectedly heavy buying in retail channels found the retailers with inadequate stocks to supply their needs. While there has been a disposition among some retailers to anticipate their needs a short distance ahead, the general tendency is to continue to buy as the need for goods arises and to operate on a conservative basis. Nevertheless there seems to be a strengthening of confidence in the general situation and as stocks are generally low as was evidenced by the heavy fill-in orders at the close of the year, wholesalers are anticipating an active business during the early months of 1925. Confidence in the general situation is augmented by the general price si tuation which has either showed a firmness or a tendency to advance. While the ability to obtain goods immediately after the order has been placed has had a material effect upon the buying policy of the retailers, another cause of the conservative buying policy has been the irregularity in business and the uncertainty of price trends. Therefore, with the development of a general firmness of prices and a material improvement in the businesss situation there is a tendency among retailers to adopt a more positive and aggressive buying policy, which in itself will likely add to the stability of business. There was also an improvement in the year-end collection situation. While some sections reported that collections are still slow, they are generally satisfactory and increased payments are being received as the cotton still in the hands of the farmers is being marketed. While the distribution of dry goods at wholesale reflected a large year-end decline, it greatly exceeded that during December last year. Despite the fact that the demand represented mostly fill-in orders called forth by the heavy Christmas shopping, and the appearance of cold weather, the volume of business was fairly large for this season of the year and enabled the merchants to dispose of much of the goods which it had previously seemed necessary for them to carryover. Purchases are still being made on a conservative basis, but some indications of forward buying are beginning to become evident. Prices have remained firm with advances being quoted on some items. The strength in the raw wool market is causing the prices on woolen goods to show an upward trend. Cotton goods have also strengthened. Collections were reported to be generally satisfactory. Dealers state that the outlook for the immediate future appears to be encouraging. The demand for drugs was well maintained during the past month and sales evidenced a heavy .increase over those of the corresponding month of a year ago. Not only was the buying good in December but reports state that since the inventory period many merchants have been ordering briskly to replenish their stocks. Prices remained generally firm . Collections were reported to be about average for the month of December. The sales of reporting grocery firms showed a further decline from the previous month, but reflected a substantial increase over December, 1923. The buying demand for immediate delivery continues very good, but demand for goods to cover future requirements has been on a small scale. Prices remained generally firm . While some items have shown an advance others have evidenced a weakness. Collections continue good in some sections but slow in others. December witnessed an improved demand for hardware. A portion of the increased sales, however, was attributed to the heavy demand for seasonal goods in which the distribution during the fall months was relatively light, and which was stimulated by the cold weather. While the demand for items in the building lines and heavy hardware has been good, the movement of shelf hardware and farm supplies has been slow. Due to the advance in prices on iron and steel products, hardware prices are firm with advances being quoted on some items. The sales of reporting farm implement fi rms reflected a large increase over the previous month and a sizable gain over the same l!lonth last year. However, it must be remembered that the movement so far this season has not been up to expectations and that the demand for imp lements has not been as good as the general conditions would seem to warrant. Some encouragement has been received from the recent improvement but dealers state that the outlook is only from fair to good. f"] llIl lllItl II U I.,IIIIIIIII III IIIIIIIIIIII I I I I I IIII IIU lllllllllll llfl llli.1111 "1111 11 111 1111 1111 11 1 11 11 111111 11 1 11111 [;] E CONDITION OF WHOLESALE TRADE DURING DECEMBER. 1924 Perce ntage of Increase or Decrease in E Net Sales Net Sales Stocks Dec .• 1924 Tuly 1st to date Dec .• 1924 oompared with !ompared with compnred wit same period Dec. Nov. Dec. NOV:lnst yea r : 1928 1924 1923 1924 Groceries ...................... - 8.9 -17. 2.8 Dry goods .................. .. .. 18.6 -48.5 8.2 -81.1 - 5. Farm implements ...... .. 8.2 6O S 4. 10.6 1.1 . Hardware ................... 85.4 4.6 7.5 -10.6 - 1. Drugs ............................ 21.8 - 1.1 7.4 1.7 - 2. :: ~ 8 r' r t + + + + E :: ~ !I 1 111 111 11111111 1111 11111 11111 111 1111 1111 111111 11 1111111"11 111" . 1111 111 1"1' 1111111 1' .1' 11111111' 1111 1111111 11 11 ' 111" 8 RETAIL TRADE A heavy demand for merchandise in the retail channels of distribution developed during December due to the large volume of Christmas :shopping and the unusually cold weather which stimulated the movement of winter goods. The latter also enabled the merchants to dispose of a large volume of goods which they had been unable to move earlier on account of the warm weather which prevailed throughout the fall. The sales of twenty-three department stores reflected an increase of 49.4. pel' cent over the previous month, and were 8.9 per cent greater than those of December, 1923. In fact the sales during the past month were the largest of any December since the post war period of 1919-] 920, and even closely approximated sales during the closing month of those years. Good results were also obtained from the year-end clearance sales. The heavy December sales enabled the department stores to greatly reduce their stocks during the month. The stocks on hand at the close of December were 21.1 per cent less than those at the close of November, and six-tenths of one per cent less than those on hand at the close of year 1923. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS The ratio of stocks to sales for the last six months of 1924 was 4,21.2 per cent as compared to 4.15.3 during the same period of 1923. The ratio of outstanding orders to last year's purchases at the close of December was 7.2 per cent as compared to 5 5.4, per cent at the close of November, and 7.8 per cent at the close of December, 1923. The ratio of December collections to accounts receivable on December 1st was 41.1 per cent as compared to 4.0.6 per cent during the same month last year. ~111I111I11111I11111111'1111111111111'1"111111'11111111111 111111111111111111111111111111111111111111111111111111111111111111111111'111 11 111111111 '11111 111111 11 111 1 1 1 111 1 1 11 1111111111111 1 111 11111111 1111111 1 11111 1 1 11 11111 11111 1 111111 11111 1I111 1 1 11 11 11 1 1~ § § BUSINESS OF DEPAR'I1MENT STORES Toml SalesDec., 1024, compared with Dec., 1923 .......................................................... Dec., 1924, compared with Nov., 1924 .......................................................... July lat to date compared with same period Jast year ........................ . Credit SaJesDec., 1024, compared w ith Dec., 1923 ..............~ .......................................... Dec., 1024, compared with Nov., 1924 ......................................................... . July 1st to date compared with same period Jast year ........................ . StocksDec., 1924, compared with Dec., 1923 .......................................................... Dec ., 1924, compared w ith Nov., 1924 ......................................................... . Ratio of stocks to sales ............................................................................................ . Ratio of outstanding orders to lust year's pul·chases ..................................... _. Ratio of December collections to accounts receivable, due and outstanding December I, 1924............................................................................. Ft. Worth Dallas t t + 10.8 48.4 2.9 8.0 50.4 2.2 1.5 - 20.4 484.2 7.5 38.2 t t Houston 6.6 68.1 2.0 12.7 64.6 7.4 + 8.6 - 26.3 t t A ll 8.0 68.6 6.0 13.6 58.2 8.1 - 1.0 - 1904 48".8 8.0 371.7 6.1 89 .9 Others t + Total District 9.3 42.6 6.2 t 8.9 4904 4.2 + 20.0 63 .0 + 9.9 t - - 1.7 21.1 898.2 6.3 40.4 46.8 13.0 62.1 6.8 .6 21.1 421.2 7.2 41.1 911111111111111111111111111111111111111111111111111.1111111111111111111111111111111"'111111111111111111111111111111111111 11 111111 1 11111'1111 111 111111111111111'111111111111111111111111'11111111111'1111111111 I IIIIIIIIIIII'III III' IIIII IIIIIIIIIII IIIIIII m FINANCIAL The volume of business as measured by debits to indi- last day of November. The amount of these acceptances vidual accounts reflected an increase of 9.8 per cent in De- which were based on import and export transactions rose cember as compared to November, and 7.3 per cent as com- from $2,496,313.60 on November 30th to $3,183,770.80 on pared to the same month last year. The aggregate for December 31st, while those based on domestic shipment the month of December amounted to $780,027,000, which and storage of goods decreased from $1,397,894.43 on was the largest for any month, except October, during November 30th to $84.7,823.43 on Lhe last day of December. The investments of the Federal Reserve Bank in bankers' 1924, and the largest for any December since 1919. The total debits at fifteen cities for the year 1924 reflected a acceptances increased from $19,905,646.49 on November 30th to $26,196,674..03 on December 31st. decrease of 6.0 per cent as compared to those of 1923. (!J11111111111111111.11."I.IIIIII'I'111111111111111111111111111111111111.".1 1111111111111111111. 1 11.111111111.11111.1. lt;:] :: CHARGES TO DEPOSITORS' ACCOUNTS E : l' I! B 7 C 7 6 G 6 R 2 S S T I 7 D E F E 1 5 7 3 4 H T W G ---: : 8 : 6111111111111111111'1111111111'11111111111111111111111111'111'11111111111111111111'1111'11111111111111'1111111"11111 111~1 Acceptance Market Reports from accepting banks in this district as of December 31st reflect an increase in the volume of outstanding acceptances of $137,386.20 as compared to those outstanding on the r:::_ " " " " " " ' ' ' ' ' ' ' .. ' § : 1. 2. 8. 4. 6. 6. 7. 8. 9. 10. 11. Condition of M ember Banks In Selected Cities Reports from 50 banks in selected cities as of December 31st reflected an increase in net demand deposits of $23,759,000 over those on December 3rd, and a gain of $4.1,534,000 during the past year. Time deposits decreased $2,168,000 during December, but were $7,605,000 greater than a year .ago. All classes of loans on December 31st showed an increase as compared to those reported on December 3rd. Loans secured by U. S. Government obligations increased $54.1,000, loans on corporate securities $2,849,000, and all other loans $9,693,000. Holdings of U. S. securities and all other stocks and bonds decreased slightly during the month. The reserves with the Federal Reserve Bank increased $4.,44.0,000, and bills pay· able and rediscounts rose $317,000. The ratio of loans to deposits was 82 per cent on December 31st as compared to 86 per cent on December 3rd. '''''''''''''''''''''''''''''''''''''''''~~':~~~~:'';;~;~;;~~~''~';"~~:~~~"~~:'~"~:";~~~~':~"~~~~'~~ Number of reporting ba nlts.............................................................................................................. U. S. securities owned....................................................................................................................... All other stocks, bonds and securities owned. ............................................................................ Loans secured by U. S. Govornment obligations ........................... _........................................... Loans secured by stocks a nd bonds other than U. S. Government obligations .............. _ All other )oans................................................................................................................................... Net demand deposits............................................................................................................................ Time deposits .................................................................................................•..................................... Reserve with Federal Reserve Bank................................................................................................ Bills payable and rediscounts with Federal Reserve Bank........................................................ Ratio of loan s· to net demand deposits.......................................................................................... ·Loans include only items 4 and 6. Dec. 31.1924 50 $46 ,394 ,000 20,699.000 3.870,000 67.897.000 288.884,000 288.686.000 89,880,000 32.785.000 2, 067,000 82% .. " " " ' ' ' ' ' ' ' ' ' ' ' .. '''''''''''''"'''''''''''''''''''''''''''8 Jan. 2, 1924 60 $58.701.000 18.406,000 3.143,000 62.858,000 218.180.000 247.061.000 81,725,000 24,413.000 1,589.000 88% Dec. 3, 1924 60 $ 46,873,000 20.617,000 3.829.000 64 ,648.000 224.141,000 264,826.000 91.498.000 28.846.000 1,760,000 86% : : £:)1111111.111111111111111111111111111111111111111111111111111111111111111111111111'11"111'1"'111'11 111 111 11111 " 'III'lt . l nllll'III'I'IIIII'III'I'11111111111111111'111111111111111'111 ' 11111111111'11111111111111 1 11111111111111111111111111111111111111'8 Operations of the Federal Reserve Bank Member bank borrowing at the Federal Reserve Bank continued relatively light during December. After reaching the low point at $2,672,056.40 on December 5th, loans evidenced a slight upward trend, but at the close of the year they had again declined to $2,713.179.74.. There were only 37 banks served during December as against 52 during November and 92 in December last year. On the MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 6 last day of 1924, 36 banks were owing the Federal Reserve Bank of Dallas as compared to 98 banks on December 31, 1923. The total amount of all classes of bills held by this bank increased from $23,050,200.56 on November 30th to $28,· 909,853.77 on December 31st, distributed as follows : rn ll • II .' 11111111111111111111111111111111111111.111.1111111111111111111111111 111111'11111111111 1111111111 1 111'11 11 1111 li t § Member banks' collateral notes (secured by U. S. Government obligations) .................................................... $ § :: :: § 201.000 .00 Rediscounts a nd all other loans to m ember banks .......... 2.512.179.74 Open market purchases (Bankers' Acceptances) ......."...... 26.196.674.03 Total bills held ....................................................................... $28.909.858 .77 r"''''''''''''''''''''''''''''':~;~;;;;''~;'':~::~:'':~::~''''''''''''''''''''''''': J!] I § :: :: § § De § ;; J a :: Fe : M 61111111111111111111111111111111'11111111111111111111111111111111111111111111'11111111111111 1111111111111111111111111111[!) Federal reserve notes in actual circulation at the close of December amounted to $55,640,950 as compared to $57,· 366,475 on November 30th and $52,802,006 on December 31, 1923. The reserve deposits of member banks totaled $65,828,199 on December 31st, representing an increase of $5,050,467.29 over those on November 30th, and $7,712,. 995.32 over those at the close of December, 1923. Deposits 0/ Member Banks banks on December 24.th were not only $37,192,000 greater than those on December 26th last year, but were $30,483,· 000 greater than the highest point reached in 1923. The deposits of member banks showed a further increase of $28,269,000 during December. The total deposits of these 46 § 82 :: 24 :: 27 :: ro:: A M 48 :: 24:: Ju fu b Se Oc N De ~ :: U:: 81 :: 06:: M:: 31 § 8 ' 11111111 1 11111111111111 1111111 1 111 1 111111111111111111111111111.1.llllllllllIllllllllIlIlIlllIlllIlI lllI l lfllll •• ,IIII.m There is presented below the prevailing rates charged during the seven·day period ending January 12th by the commercial banks in the cities listed below: Discount Rates J ANUARY DISCOUNT RATES Prevai ling Rates .. <= en Rate charged customers on prime commercial paper such as is now eligible for rediscount under the Federa l Reserve Act : ~b! ~~~~:~~ !~660';;~nt~::'~"::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::.: _ ;; Rate charged on loans to other banks. secured by bills receivable ............................................................ .. Rate on ordinary commercial loans ru nning 80·60·90 days secured by Liberty Bonds and ccxtifi. cates of indebtedness (not including loans to enable purchase of bonds) ...................................... .. Rate on Joans secured by prime stock exchange or othel' current collateral: (a) Demand ................................................................................................................................................. .... (b) Time ...... _.................................................................................................................................................... R ate on commodity paper secured by warehouse receipts. etc..................................................................... Rate on cattle loans ................................................................................... .. ............................................... _............. 4·6 4·6 5·6 8 8 6-8 5· 6 6-6 5·6 5·6 5-6 4t-5 6-8 6·8 6 5·6 8 6·8 5·6 6·8 6 6 6·8 5·6 6-7 8 8 8 8 6·8 6·8 6·8 6·8 5·6 5·6 5·6 7-8 6·8 6·8 6·8 7·8 6·7 6-7 6·8 .. .. 5·7 6·7 5-5! 9111111111111111111111111.11111111.,.11,11,111,1111,1,1,.,11,1,1,1, 111 1,.' II IIIIIII I" "IIIIIIIIIIIII III I.III I I IIIIII I IIII 'l llltil11"1111 111,111 11 111"1111, 11 111,11,1111"",, ,.,. 1111"1IU.IIIIIIII'I.IIIII.IIIIIIII' III'I.IIIIIIII., .,.IIIIIIIII 'll lIlm The savings deposits as of December 31st of 106 banks in this district which operate a savings department were practically the same as those on November 30th, but were 6.4, per cent Savings Deposits greater than on December 31st last year. The number of depositors of 100 banks totaled 234,229 on December 31, 1924" as compared to 233,151 at the close of the previous month, and 209,258 on December 31, 1923. SAVINGS DEPOSITS Beaumont ........................................................................ Dallas ............................................................................. . EI Paso .......................................................................... . Fort Worth ................................................................... .. Galveston ................................................................... "..... .. Houston .......................................................................... . San Antonio .................................................................. . Shreveport .................................. ................................ .. Waco ...................................................................... ....... .. All Others ................................. _................................ .. . Total _...................................................................... .. - Number of Decemoer 81. 1924 ~ecember 31. 1923 Reporting Number of Amount of Number of Amount of Banks: Savings Savings Savings Savings Depos itors Deposits Depositors Deposits "4 4.714 2.898.248 4.198 2.225.806 6 42.429 12.892.654 84.798 11.014 .079 S 6.205.318 14.721 6.292.684 15.559 3 8.855 8.624.418 8.872 3.129.668 8 1/!.950 7.804.831 10.654 6,987.499 18 57.256 21.612.824 50.485 19.781.289 ·6 17.786 10.689.778 14.988 9.787.668 ·5 21.688 9.681,819 20.121 11.808.795 5 6.165 8.321.078 5.485 2.686.221 ·58 46.832 20.512.771 45.441 19.605.700 106 284.229 98.738.229 209.258 92.769.409 November 80. 1924 InDC. or Number of Amount of Inc. or ec. S.wings Savings Dec. Depositors Deposits + 7.5 4.260 2.261.809 5.8 +17.1 41.751 12.961.325 .5 - 1.4 17.620 6.686.917 1.6 8.821 8.686.101 12.5 18.04 6 7.710.545 1.2 9.3 56.685 21.492.897 .6 9.2 17.150 10.818.848 3.6 - 14.4 21.686 9.723,370 .4 +28.6 6.083 8.165.378 4.9 + 4.6 46.450 20.883.882 - 1.8 + i -i g + + 6.4 288.151 98.785.522 None " Only 3 banks in Beaumont. 5 banks in San Antonio. -1 banks in Shreveport. and 55 banks in a IJ others r eported t he number of savin gs depositors. 01,.,11,.1.,1111,.",,11,.1,1,1111,111,111,1,11,1,.,.,""1"'1'11'11"11111"1111'1111'11111'1'11"'111111'11111,111111111 1 1111,1111111,1.,11.11, •• 1.1., •• 1.1.111.,1., ••• ,111.111'1.,1. ,11. 11111.1111111111".1'1111111,.,1.,11111111 111.11"111"1,1. , 1 8 111 FAILURES The December commercial failure record reflected a $368,159 as compared to 68 failures during November with marked improvement as compared to both the previous an indebtedness of $904,820, and 148 insolvencies in De· month and the corresponding month last year. There were cember, 1923, with liabilities amounting to $2,046,743. 52 defaults during the month with liabilities aggregating It is interesting to compare the trend of failures in the MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS Eleventh District with that for the United States as a whole. During the year 1924 the number of insolvencies in the Eleventh District declined 44 .5 per cent and the total indebtedness of defaulting firms declined 72.8 per cent. The failure record in the United States for 1924, showed that there was not only an increase over the previous year of 10.1 per cent in the number of defaults, but that the ratio of failures to the number of business concerns increased fr om .941 in 1923 to 1.01 in 1924,. There was only a slight increase in the indebtedness of insolvent firms . mlllllllllllllllllllllllllll.,11111111111111111111111111111111111111111111111111111111111111111111111111 1 1111 11111I I III II!') " January ..................................... FebrU8t'Y ................................ ... March ....................... ~. ..... ..... . .... April ........................................... May ............................................. June ............................................. July ............. ,............................... A..ug us t ......................................... September ................................. October ....................................... November ................................... December .................................... E levent h Federa l Rese r ve Dis t rict 1024 1n23 Amount No. Amount No. 68 $1,170,988 117 $1,624,1 07 1,280,648 2,104,6 ~)lj 67 91 2,47 4,5 04 74 950,677 91 8,874, 8 0" 881,286 66 9a 720,662 8,779,9 6n 68 78 60 766,071 l,29a,O 18 97 40 2,676,0 00 2 42,4~4 81 52 988,481 1,020,5 9G 68 84 1,767,766 680,466 79 46 648,30 0 2,417,4 70 111 004,820 6M 127 4,446,7 24 868,169 62 2, 046,74 3 148 9,846,761 1,181 $84 ,815 ,38 666 ~111I111'~~~~!,I1;~·,:;;~·I·;;;;;;~·;;;;;~·:;;;;~·;;;;:,1I111111111111111111111111111111111111111111l1111111111111IIII.?.,W PETROLEUM Although the production of crude oil in the Eleventh District during December showed an increase as compared with production during the previous month, the increase in daily average production was less than that during November_ There were 13,64,5,052 barrels of crude oil produced as compared to 12,943,205 barrels during November, which I::' represented an increase of 8,723 barrels in daily average production as compared to an increase of 13,103 barrels in daily average production during November. There were 4.01 wells completed during December, of which 271 were successful and yielded a flush production of 86,049 barrels, which compares to 372 completions during November of which 238 were producing wells and netted 79,581 barrels of initial production. There were 11,754.,858 barrels of crude oil produced in Texas during December, as compared to 10,990,205 barrels during November, representing an increase of 764,,653 barrels in total production and 12,84.9 barrels in daily average production. The Wortham field was the center of interest during the month. Completions in this field were rapid and by January 6th the daily average production was more than 100,000 barrels. The Archer County field reached a new peak of production during December. All Texas fields showed increased production during December with the exception of the Gulf Coast field. Activity in the East Texas gas fields continued to be marked, and 27 successfu l wells were comp leted during the month. Crude oil production in Louisiana declined from 1,953,000 barrels during November to 1,890,194. barrels during ,126 barrels in daily average proDecember, a decrease of 41 duction. There were 45 wells completed in Louisiana during December, of which 15 added a flush produ ction of 2,4.95 barrels of oil, and 19 were successful gas wells. Crude Oil Prices Prices on all erude oils produced in this district in December were the same as those prevailing during November. However, the market is reported to be on a firmer basis. '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''~;~~:~i~~;;::"'''''''''''''''~'::=~:''''''''''''''''''''''''''''''::::=::'~:'':~::: ""'' "'' 'i:: ~ Field North Texas ...................................................................... Central-West Texas .......................................................... Toexas Coastal ...............................................................•... Miscellaneous fie lds .......................................................... Total Daily Average 2,800,894 90,336 5,298,380 170,764 2,066,134 66,660 1,694,960 61,450 Total Daily Average 2,630,310 81,344 4 85 a 866 161779 2;17 2;080 7 ~:4 0? 1,484 ,460 ___ 47,815 ~ Total, Texas ................................................................ North Louisiana ... ~.................................. . ...... . ...... . ... . ... .. . 11,764,858 1,890,194 879,189 60,974 ~ Total, 11th District.................................................... 18,646,062 440,163 :. ~. m 7 l ..... IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I III.1111111 1 11 Inc. Inc De~. Inc. Total 270,084 440016 105:946 160,600 Daily Avg. Inc. 6,991:. Inc 8975 De~. 5: 752 ~_ Inc. 8,63b ~. 10,990,205 1,958,000 866,340 Inc. 66,100 Dec. 764,668 62,806 Inc. Dec. 12,849 4,126 ~ 12,043,~05 431,440 Inc. 701,847 Inc. 8,723 ~ u, 11 111 1 11111 ,11 1 11111 111 11 11 1111 1111111111 1 111111111111 U 11 111 1111I1A 111111 1 11111111.111111111111' till 11111 11111 11111 11111 11111 III 11111 1111111111 11111 11111 III 1111 11111 III 11111 III III 111111 11111 II!) rnllllllllllllllllllllllllllllllllllllllllllllllllllill11111111111111111111111111111111111111111111111111'111111111111111l!! CRUDE OIL PRICES DECEMBER DRILLING RESULTS CornProFailInitia.l Field pletions ducers ures Producti on 128 17,720 66 North 'l'exas ..................................... 194 49 32 67,415 Central-West Texas ....................... 81 29 10 6,254 Texas Coas tal ................................. 89 ·28 25 East Texas ...................................... ·28 2 2,100 Miscellaneous f ields ....................... 2 1 11 40 Texas wildcats ................ .............. 12 Totals, 11exas ........................ . North Louisiana ... ~ ...................... . - -- - - - - --1-- - - 866 45 - - 287 ··84 119 11 88,664 2,496 130 134 86.049 70,681 - - - --1 - -- December totals, Distr ict...... 401 271 November totals, District.... 872 288 27 gas wells. ··Includes 19 gas wells. ~ ·Includes TEXAS- ~ lEIIIIIIII.IIIIIIIIIII.IIIIIIIIIIIII •••••• IIIIII.III .. II •••• 1111111111111'1111111'11111111111111111111111111111111111.IIIII!) Jan. 16, Jan. 19, 1925 1924 COl'sicnna ligh t ...................................................................... $1.25 ~1.4 0 Corsicana heavy ................................. ,.................................. .90 .50 Texas Coastal ........................................................................ 1.60 1.50 Mexia .............................................................................~.......... 1.25 1.40 Cur rie ...................................................................................... 1.26 1.60 North Texas (36 gravity and above) .........,...................... 1.25 1.40 LOUISIANAJ a n. 16, Jan. 19, 1926 1924 Caddo (88 gravity and above) .......................................... $1.86 $1.85 Bull Bayou (38 gravity and above ) .................................. 1.16 1.80 Homer (36 gravity and above ) ..................... , ................ 1.10 1.85 1.26 [!]11I1I1I111I1I111111111I111111I11111I11111I11111I111111111111I • • 1.11 1' 111111 1 11 1I111 11 ",III I.IIIIIIIIIIIIIIIIIII .. " .. 1 [!) (Oil Statis tics Compiled by The Oil Weeldy, Houston , Texas ) LUMBER The December production of lumber at the pine mills of the Eleventh Federal Reserve District increased slightly, but large decreases were registered in orders received at the mills and shipments made. Shipments from the mills during December were 1 per cent below production as compared to 18 per cent above production in November. Orders received during December called for only 80 per cent of normal production as compared to orders for 98 per cent of normal production during November. Production of lumber during December was 18 per cent below normal as against 20 per cent below normal in November. The stocks of lumber on hand declined to 30 per cent below normal stocks in December, as compared to 28 per cent below normal in November. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 8 Unfilled orders on the books of the 4.8 reporting mills at the close of 1924 called for 50,365,528 feet of lumber, while those at the close of November called for 57,086,64.0 feet. 8 ...... = 11 .. 11 11 1111111 11 11 1111 1111 1111 11111 11 11111 111111 11 111111 111 11 111 1 11 11 11111 11 11111111 11 11111 11111 111 IHII II IIIIII£!) = DECEMBER PINE MILL STATISl'ICS Number of repOrtmg m,]ls .... uu ..... ~ .............. u....... 48 ~hi:;:'~~'t!' :::~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~~:m:m i:~ Orders ............................................................................ 85.488.043 Unfilled orders. Dec. 31st.................. ...................... 60.366.628 Normal production ...•.............................................. 106.208.763 Stocks. Dec. 31st..........................................................221.286.267 Normal stocks .......... .. .............................................. .. 317.226.043 Shipments below production ......... ...... ,.................... 724.107 Actual production below normal... ............ .. .. ..... .... 19.326.616 Orders below normal production ................... .. .... .. 20,716.720 Stocks below normaL.............................. ...... . ..... 95.988.776 : feet feet feet feet feet feet= 1% feet=18 % feet=20ro feet=8 0 Yo r.···. . . . . ·.. . . . · · ·.. . . ·.. . · · ·,·. ··. · · · ,· ·,. .... . . . . . . .... .... . G]UII1I1I1 I1I1I1II1I1I1 I1I1 I I1 I1I1II1I1I1I1I1 f1I I1 I1I1I1IfI: HIIlHIl IlICU UUUII II IIII II II II IIII II II lIlIflllf ll lll l l ' @ ~ E E : December. 1924 ValuaNo. tion 26.405 Austin .......... ............... ............ ... 25 118.089 Beaumont... .. ...................... ....... 126 940.110 Dallas ... ~ ................................... 307 88.979 41 Ell Paso .................................... Fort Worth .......... ................... 117 2.026.060 81.666 221 Galveston ................................. 373 1.319.466 Hous ton ........... ,............ .. .:......... 626.869 127 Port Arthur ........................... .. 757,249 268 San Antonio....................... ..... 441.692 Shreveport....................... ......... 166 854.164 Waco.......................... ......... .... 64 148.822 Wichita Falls .......................... 61 I : § Tota!.. .. ...................................... 1!JII I' • • • ••• lll l a • ••• I •• • --1.876 BUILDING Building projects launched during December in the Elev· enth District, as measured by permits issued at twelve of the larger cities, were on a large scale, as evidenced by the fact that their estimated valuation amounted to $6,922,981 as compared to a valuation of $5,712,377 in November, an increase of 21.2 per cent, and increased 32 per cent over the valuation of $5,243,968 reported in December, 1923. However, there were only 1,875 permits issued in December as abaainst 2,4.78 in November and 1,720 in December last year. h 083 d During the year 1924, t ere were 32, permits issue at the reporting centers having a total estimated valuation of $87,602,305, while in 1923 there were 32,148 permits isI f' I $80 562 724 . sued which had a va uation 0 on y , , an Increase in valuation of 8.7 per cent during 1924.. .. . . . . . .. . . . . . . . . .... . . . . . ..... .... . . . . . . . . . · ·. . · ··.. . · . ······'T 1, ~;~~~~~~ ;~;:.;~~ December, 1923 I Inc. or November, 1924 ValuaDec. ValuaNo. No. tion t ion 27 473. 023 - 94.6 206,785 89 III 73.078 + 64.7 162.06.J 166 261 1.128.902 - 16.7 879 1.047.468 77,636 60 48 125,690 14.6 128 671.029 201.9 185 460.417 217 64.0 49.797 268 110.668 1.9 818 1.846.642 489 1.196.802 110 118.830 +427.1 167 82.129 187 277.700 .,..172.7 884 1.806.686 236 773,977 - 42.9 218 719.827 48 130.410 17 1.6 60 126.000 48 124.046 20.0 86 191.84 ~ --6.922.981 1.720 - 6.243.968 ~ t 662.7 - 42 .0 - 38.6 +181.1 - 22.2 No. 482 2.466 4.81 0 763 2.421 3.489 6,747 1.916 4,062 8.286 741 928 + 21.2 t ---- I nc. or Dec. 82.083 - 87.7 - 26.7 - 10.2 - 29.2 +349.8 - 26.2 t lOA --- -2,478 ---- - - - - - -- 6.712,377 + 32.0 TWELVE MONTHS 1924 1923 Inc. or E Valuation Dec. No. Valuation E 1.445.616 692 1.970,076 - 26.6 : 2.54 0,374 2.188 2.689.372 - 6.6 : 26.588,224 4.686 20,987.819 +26.4 1.603 ,997 900 2.101 .980 -23 .7 11.408.208 2.876 8,4 06.264 36 7 . 2.606,188 3.931 1.892.812 37.7 17,210.769 6.670 19.062.403 - 9.7 1.958.930 2.273 2.917.065 -32.8 9.601.869 3,766 8.047.646 +19.3 8,069.487 3.861 9.467.382 -14.8 2,271.119 684 1.283.772 76 9 . 2,347.685 681 1.747,238 84.4 t 87.602,306 --82.148 - t 80.662.724 + 8.7 I I I . III I III'II I III IIIII' I C I II . 1 11111 111 1 1 11 1 1 1 1 1 11 1 11 1 11 '11 111111 1 111~ II I I ' I II III ' 1 1 1 1 11111 1 11 "' 11 " 1 11 1 111 11'1 ' 1 '1 11111111 11 1 11 11111 1 1111111 1 111111 11 1111 1' 1111111 1 1111111 1 1111111111111111 11 11111111 1 1 1 11 1111 1,111111 1 1111111,.1 8 CEMENT Shipments of Portland cement from Texas mills in December declined 27.9 per cent as compared to shipments during November, but were 38 per cent greater than those during December, 1923. There were 372,000 barrels of cement produced at these mills during December as compared to 384,000 barrels in November and only 227,000 barrels in December last year. Stocks of cement on hand at the mills at the close of December totaled 356,000 barrels as compared to 24.2,000 barrels on hand on November 30th, an increase of 4.7.1 per cent, and 294,000 barrels on hand December 31, 1923, an increase of 21. 1 per cent. During the year 1924 there were 4,,566,000 barrels of Portland cement produced in Texas, which represents an increase in production dlJring the year of 9.2 per cent over the 4,180,000 barrels of cement produced in 1923. Shipments of cement amounted to 4,,44.8,000 barrels during 1924 as compared to 4.,075,000 barrels in 1923, an increase of 10.1 per cent. [!] 111 1 1111 111 11 11111 1111 11 J 111111 1 11111 11 111111 1 1111 1 11111 1111 11 11 111 11 111111 11 11 11 1111 1 11 II 1 1I 11 fill 11111 I I I III ' III 111 1111 111 11111 111 11111 11111 11 1111 1 11 1 t I' I It 11111 11 1 111 1111111 11 11 1 11 11 11 " 1:_=:: 8 PRODUCTION SHIPMENTS AND STOCKS OF PORT'LAND CEMENT I t 1111 1111 1 111 1 1 1 1111 11 11 111111 ' 11 111 111 '111 ti t 1111111111 1111 I!l (BarrelS):: : ig _ Production of TexllS Mills ..... ~ ................ . Shipments from T exas Mills ...................• Stocks at end of the month at Texas Mil 111 11 " III II IIII'IIIIIIIIIII III IIIIIII I IIIII I III I II I IIIII ' "lll fl lIllll' '' " 1 1I IIIIII I IIII'III I III I II I I I I'IIIIlIII ' IIIIII IP II'IIIII'IIIIII1111'11 ' 111 111 11 1'1"1'1 1 111'1111'1'11 111 111111'111 ' 111 1 1 11111 1IIIIIII II II I IIIII"I'IIII I IIIIIIIIIIIIII'I'IIIII. (!j MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 9 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board. as of January 24. IQ25.) Production and employment in December continued the increase which began in the autumn and wholesale prices advanced further to the highest level for the year. Railroad shipments of goods continued in large volume, and trade, both at wholesale and retail, was larger than a year ago. PRODUCTION The index of proQuction in basic industries advanced about 10 per cent in December to a point 25 per cent higher than last summer but was still below the level of the opening months of 19241 Practically all of the twenty-two in. dustries included in the index shared in the advance, and the increases were particularly large in iron and steel, cotton manufacturing, coal mining, and meat packing. Among the industries not represented in the index the output of automobiles declined in December, and was the smallest for any month in more than two years. Increased industrial activity was accompanied by an advance of about 2 per cent in factory employment, with larger increases in the metal and textile industries, and by a growth of nearly 5 per cent in total factory pay rolls. Volume of building, as measured by contracts awarded, was less in December than in November, but continued unusually large for the season of the year. TRADE I. Distribution of goods was greater in December. than in t.he same month of 1923 as indicated by larger raIlroad slupments and increases in the volume of wholesale and retail trade. Christmas trade at department stores was greater than in the previous year, and sales by mail order houses and chain stores were the largest on record. Wholesale trade was seasonally less than in November, but in practically all lines was larO'er than a year ago. Marketing of agricultural b products was greater than for the corresponding month of any recent year. PRICES A further advance of more than 2 per cent in the Bureau of Labor Statistics index of wholesale prices carried the avpeR CENT PERCENT 150 150 ~----~-+--------~--~~~r-------~I00 erage in December 8 per cent above the low point of June, and to the highest level since April, 1923. Prices of all groups of commodities were higher, the principal increases being in farm products and foods. In the first half of January prices of grains, wool, coal, and metals increased further, while sugar, dairy products, silk, coke, and rubber declined. BANK CREDIT At the Federal reserve banks the rapid return flow of currency after the holiday trade resulted, during the four weeks ending January 21st, in a reduction of earning assets about equal to that for the same season a year earlier. The net outflow of currency from the reserve banks during the month preceding Christmas amounted to more than $200,000,000, and the return flow after the Christmas peak, reflected both in the increase in reserves and in the decline of Federal reserve note circulation, was in excess of $300,000,000. Fluctuations in the earning assets of the reserve banks during the past two months have reflected chiefly thes~ se~ sonal changes in the demand for currency. The declme In discounts brought their total on January 21st to a smaller volume than at any time in 1924" and acceptances also showed a seasonal decrease. Holdings of United States securities, which have declined for more than two months, were about $175,000,000 below the level of last autumn, and in about the same amount as at the middle of 1924,. Net exports of gold, which gave rise to a demand for reserve bank credit, amounted to $30,000,000 in December and were in larger volume during the first three weeks in January. The growth of demand deposits at member banks in leading cities during the three weeks ending in the middle Of J anuary which has been greater than the increase in their total loans and investments, has reflected the return of currency from circulation. In the same period there was some increase in commercial loans and a continued growth in loans secured by stocks and bonds. Holdings of investment securities have decreased somewhat since the middle of November, particularly at the banks in New York City. Firmer conditions in the money market in December and the first few days in January were followed later in the month by declines in rates on commercial paper to 3lj2 per cent. PER C£MT 2 PfR CENT ZOO '" - -- 501"" -..,.... L so 1 00 100 50 50 SO~-------+--------1-------~~------~50 PRODUCTION IN BASIC INDUSTRIES WHOLESALE PRICES OL-______-L__~~~--~~--~~~~~O 1922 1923 1524 1925 Index of 22 basic commodities corrected for seasonal variations (1919=100). Latest figure-December 117. I 0 1922 192 3 1 92~ 1925 o Index of U. S. Bureau of Labor Statistics. (1913=100, base adopted by Bureau.) Latest figures -December 15.7. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 10 PtA CENT PtR CENT 200 200 BILLIOHS OF DOLLARS BILLIONS OF DOLLARS 2 Z FEDERAL RESERVE BANK CREDIT _---#----d+---+t-------j150 ~~+_~~~-~-~-_++_-r----~100 ~1_---_+----+----t_------j50 OEPARTMENT STORE SALES _ _ 'NITII 5[14$0",/U. ADJUSTMeNT WITNOUT AO.;UST4AENT OL-_ _ _-L_~_ _~_~~-~~~~~ o 1922 19 ~. 3 19 ? '+ Ins Index of sales of 333 stores in 117 cities (1919=100). Latest figures-December 207. o 0 1922 1923 1921. 1925 Weekly figures for 12 Federal Reserve Banks. Latest figure, January 21. COTTONSEED PRODUCTS INDUSTRY (NO'I1E :- The following is ~hc fifth of a. series. of ~pe.cia l articles reviewing the growth and development of the cottonseed products industry and some of the financial and economIc problems wIth whIch It IS now confronted.) FOREIGN TRADE IN COTTONSEED OIL The foreign trade in cottonseed oil has exerted a farreaching influence upon the growth and development of the cottonseed oil industry. In the beginning of the industry interest was centered in the export trade. This foreign demand increased with each successive year, and soon became the chief support of the new industry. In fact, it will be noted from the accompanying chart in the years just prior to 1880 that exports were closely approximating production. During the period between 1870 and 1880 certain factors were coming into play which were destined to bring about a new era for cottonseed oil. A process for the manufacturing of margarine was discovered in 1869 and was perfected in the following years. The Franco-Prussian War, which depleted the European supply of fats, gave an impetus to the margarine industry and created a heavy demand for animal fats from abroad. This demand was met by the meat packing industry in the United States. The packers at once began to divide the lard into two grades. The leaf lard was manufactured in such a way as to make it sweet and without any cooked flavor and then exported to the margarine manufacturers in Europe. The remaining fats were rendered in the usual way and the product which was called prime steam lard, was sold to the lard manufacturers for refining purposes. When the packers began to separate the leaf lard from the other fats the quality of the refined lard sold to the domestic consumers began to deteriorate. The increasing demand from the margarine manufacturers caused an increasing proportion of the leaf lard to be taken from the prime steam lard with the result that the deterioration in the products of the lard refining establishments was more marked each year, and was bringing these products into disrepute among domestic consumers. Such a situation demanded immediate attention. Consequently, in 1879 experiments were made in the refining of lard by the use of fuller's earth, which resulted in a marked improvement in the quality of the product. The possibilities offered by fuller's earth in refining were so great that it was pressed into use for refining cottonseed oil. The use of fuller's earth purified cottonseed oil to a degree unknown before and the value of cottonseed oil as an edible oil was enormously increased . Cottonseed oil, therefore, was soon pressed into use as an adulterant of lard in the manufacture of lard compounds. The effect of the discovery was to create an enormous domestic demand for cottonseed oil. The expansion in the demand for cottonseed oil following 1880 was so great that it practically absorbed the entire output of the then existing mills and foreign trade dwindled to insignificant proportions, due primarily to the active domestic competition rather than lessened demand from abroad. The transformation which took place in the cottonseed oil trade is reflected in the fact that in 1880 there were 70,000,000 pounds of cottonseed oil produced, of which 52,000,000 pounds was exported, but in 1883, despite the increase in production to 118,000,000 pounds, exports had declined to only 3,000,000 pounds. Thus the period from 1880 to 1890 may be characterized as one in which the domestic demand was the stimulating force necessary for the rapid growth of the industry. However, toward the end of the decade the domestic consumption began to show evidence of reaching the saturation point. This situation led to a reversal of the forces stimulating the development of the industry in the following decade. During this period there was a revival in the eXport trade. Despite the fact that the production of cottonseed oil was almost tripled, practically all of this increase went into export channels. From the accompanying chart it will be noted that the production curve and the export curve were almost parallel. The discovery in 1899 of the Wesson process for refining cottonseed oil set another new standard for this product. A plant for the manufacture of oil by the new process was MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS - - - - -, 11 put into operation the following year. When the improved product was placed upon the market the effect was soon noticeable. New capital was attracted to the industry with the result that there was a further expansion in milling capacity and a growth in cottonseed oil production. However, during the years immediately following 1890 there was a decline in exports. The Trend of Production In studying the trend of production of cottonseed oil it should be noted from the accompanying chart that prior to 1905 there was a steady growth in the volume of cottonseed oil produced. In some years the increase was moderate, but in other years it reached enormous proportions. However, in 1905 the industry had about reached the point where the total available supply of seed was being crushed. In other words, the time had come when the volume of production could not be increased in response to a heavy demand, but was regulated by the size of the previous year's cotton crop. Consequently, in the years following there has been considerable irregularity in the volume of oil produced, due largely to the fluctuations in volume of seed available for manufacture. Thus it will be noted that following the years of 1906, 1908, 1910, 1911, 1914 and 1920, which were year~ of heavy cotton f.coduction, there were enormous increases in the volume of oil produced. In fact, from 1905 to date the fluctuations in the production of coH;onseed oil have closely approximated those in the production of cotton. It must be remembered, however, that in the earlier years of this period an increasing proportion of the seed produced became available for manufacture, due to (1) the improvelllent in transportation and storage facilities; (2) a curtaillllent in the use of seed for fertilizer and feeding purposes; (3) increased mming capacity; and (4) the gradually increasing value of the seed, which caused the surplus seed held by the farmers to be marketed. The Effect of Price Fluctuations Upon Foreign Demand One of the most outstanding features in connection with the export trade in cottonseed oil has been the sensitiveness of foreign demand to price fluctuations . Prior to 1890 the effect of price changes upon foreign trade was not so noticeable as in later years. During the early years when the foreign demand absorbed such a large proportion of the production, a considerable portion of the oil exported was used as an adulterant of olive oil and the mixture went into trade channels under the name of pure olive oil. This product brought a high price and consequently the producers were able to pay a high price -for cottonseed oil. One of the principal reasons why the foreign demand was not so sensitive to price changes during 1880 to 1890 was the fact that the domestic trade was able to absorb such a large proportion of production. But as production increased and the domestic consumption began to reach the saturation Point, foreign demand became more responsive to price ~Uctuations. Thus in 1890 when there was a sharp decline In prices the exports of cottonseed oil jumped from 20,000,000 pounds in 1889 to 100,000,000 pounds in the following year. It was during the following decade that prices evi?enced a downward trend and in response the foreign trade 1n . cottonseed oil made such enormous gains_ The lower pnces, brought about by the steadily increasing production ~nd the constancy of domestic consumption, made the trade 1n cottonseed oil profitable to the soap and margarine lllanufacturers of Europe. However, with the discovery of the Wesson process of refining cottonseed oil, the domestic demand increased by leaps and bounds, the immediate effect being a sharp upturn in the cottonseed oil market. But the rising prices again curtailed foreign demand. The improved market brought more new capital to the industry and consequently greater milling capacity and larger production. This, together with the lessened foreign demand in a few years resulted in a reaction in t1e cottonseed oil market. Thus in 1905 the recession in the cottonseed oil prices was reflected in an enormous expansion of exports. In succeeding years when the total available supply of seed was being crushed and when production could not be mD~e rially augmented by increased milling capacity, the price of cottonseed oil became even more sensitive to supply and demand. Therefore, from that date until the present time the volume of exports has shown an irregular trend, due largely to price fluctuations. Whenever there was a marked recession in the price of crude oil it was reflected in greatly increased exports, but as soon as prices turned upward and passed the point where the foreign marginal buyers could absorb the oil, foreign demand receded. From the appended chart it will be noted that in 1905, 1909, 1912, 1915 and 1921 high points in the exportation of cottonseed oil were reacl1ed, following sharp declines in the price of cottonseed oil. Where Our Exports Go Another iriteresting feature in connection with our forp.ign trade in cottonseed oil has been the changes in distribution of exports among the importing countries. Between 1890 and 1900, France and Holland combined were taking about one-half of the total quantity exported. France was taking large quantities of low-grade oils for refining or for use in the manufacture of soap and also some high grades for various edible purposes. On the other hand, Holland was importing chiefly high grades of summer yellow for the manufacture of margarine. During the earlier years, Holland's takings were about treble in quantity the amount taken by France. In the later years, although both countries had greatly increased their imports, the quantity taken by France increased to such an extent that by 1900 France was absorbing about one-third of our total exports, while Holland had dropped to about one-fifth or one-sixth of total exports. At this time the three next important consumers of our oils were Austria-Hungary, Germany, and the United Kingdom, each country taking about equal quantities, and the combined consumption being about 30 per cent of our exp orts. Other important importing countries were Italy, Belgium, and Mexico. By 1906 the takings of various foreign countries had changed considerably. Germany was then the heavy importing nation, taking in that year approximately one-third of our exports. France, although holding second place, had again dropped to the point where she was importing only about one-fifth or one-sixth of our exportations. The amounts imported by Austria-Hungary, the United Kingdom and Holland had shown but little change. Considerable gains had been made by Belgium and Mexico and the trade in Canada and the South American countries was gaining. Other important changes had taken place in the distribution of our exports by 1912, the year in which our exports reached the highest point on record. Germany had decreased her takings to such an extent that they represented only a small percentage of our exports. Holland had regained first place among importing nations, and in the year mentioned above absorbed such an enormous quantity that 12 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS it amounted to nearly 25 per cent of the large amount of oil exported. The United Kingdom was the other heavy importing nation, taking from 17 to 20 per cent of exports. The other important importing nations, listed according to the volume taken, were: Italy, Mexico, France, Germany and Canada, the combined takings of these countries being about one-third of total exports. There had been further gains in the South American countries. During the war period our exports to European countr'ies showed heavy declines, but the trade with Canada and the South American countries showed a tendency to increase. Although the quantity of oil taken by European countries in 1919 and 1920 increasea somewhat, the trade with them was greatly curtailed both on account of the exceedingly high prices and the lack of transportation facilities. However, in 1921 the enormous price declines and the improvement in transportation facilities stimulated foreign demand with the result that exports evidenced a sharp increase., Exports to practically all European countries reflected a con- siderable gain. There is shown helow a comparative state· ment of exports of cottonseed oil to the eight leading importing countries for the fiscal years ending June 30, 1920, and 1921. Pounds 1920 1921 Netherlands ..:....... ...... .................. .8,015,000 119,738,000 38,578,000 Canada ... ............... ... ..... ................ 52,320,000 Italy ............................ .................... 17,511,000 , 28,179,000 United Kingdom ........ .................. 7,4.98,000 24,4.82,000 Norway ................................... ....... 17,027,000 10,359,000 Denmark ........................................ 3,205,000 9,4.l3,000 France ............................................ 11,661,000 8,089,000 Germany ........................................ 1,072,000 8,563,000 Sinc~ 1921 exports to practically every nation have shown a marked decline. This feature will be discussed in an article which will appear in the next issue of the Review dealing with "The tariff on cottonseed oil and competing oil and its effect on the foreign trade in cottonseed oil." THE YEARLY PRODUCTlONAND EXPORTATION OF COTTONSEED , OIL - 1875 TO 1924 ,.,,,,,.., 0 1'1""0" • 0{ POUY'lds I /600 1400 - 1\) \ - - CRUDE COTTONSEED OIL PRODUCID IN TH! U~IT£D STATIS _ - - - - - COTTOfllS[(O OIL E lIPORT£O -CRUDE AND I/ErlH£D Yea.r1 E-nd,,'S JUfI. 30171 1 000 800 (,00 "100 ,--VJ 200 o ---::: . ..-...... .......-- ~ ~ ~ ~ ~ V ~ C ... ' ......................... "~~,,. --- ........... ..... ', '" ::: t;~&lS! .. -------. " ........ _- V / cn~a:; --' . '" '" '" , L /\ f\ I r I" /000 900 I 600 . .. '.."._-..""". ',' ~"" ...... ..... -\ .. . .. 400 ."--- ,"\ \\ \---, ,/' IZOO \v \/ ,J I ... OI!) V"\V\ / y",,, E.dlns Ju" 31·' 1200 /GOO ,l ' . _J \/ " '\ . /\ , """",,'''''', , " . ............. zoo \, $;' :g '" g 651.... ~ 0 ~ r- ':ll !!l !2 - ~ ~ '! -- !2~ r- .. en - '" ;;:; ~ '" '" '" N o