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CRAS. C. HALL-W. J. EVANS, Assi.tnnt Federal Reserve Agents This copy released for publication in morning papers Volume 10, No. 12 (!J , . 111 1 1 11 1111111' 1111 1 1 1 1 1 111 11 " It II' 111111'1"111 111 1111111 1' 11'1, , 11 ' 1" Jan. 30 DISTRICT SUMMARY 1 111 1 1 ' " ' IIIIIII I I1 I I IIII1 I1I1I1I1I I1III1 I1IIIIII1I1UIIlIlIIlIlIlIlI ............. ,111111111 1 111111"11 11111111111111111111111111'11 II 11111111111 1 11 flIIIIIUII.IIIIII" I I ' " liS THE SITUATION AT A GLANCE Eleventh Federnl Reserve District .:.:. . . ~:·. . . . . . .:.:. . . . . . . . . . . ... . . ... . . . . ............. . ..... .. . . ................ ~:;n~t:~J~~ ~o:~d!~l:.~~ .. ~~~~~~.~ ...~~~ ..~~ ..~~~~~.!: Reserve Bnnk lonna to member !Janka at end of month ........................... ::::: .::: ..... ~:: .. ::::::::::::::::::::::::::.~::. f~~11~~~e~~;~~~Hl~TI~'~;~;;;~~~~~~;~~~~~~~~~~~~:~~:~:;:~~~~:~ ~: ~~ ~ . ~ : ~: : ::~:.: : . : :;:.~: : : : : : : : : :; ;~: : ;;: ~ 0Llu'mPerodouctlon (bn:rels) :......................................: ....._................,'................................................. ........................ b r rders at pme mill. (per cent of nOi mal productIOn).................................................................... December $821,420,000 $4,006,902 November $766,027,000 $10,852,751 Inc. or Dec. Inc. ~e~. :::::8~i% $5;::::~~!% rne~. b~~. :9, 18,051,416 81 % 12,812,545 98% Dec. 7.2 % :~:f:f? .2~~~i~ 3~:~~ 4 points E [!J 111111111 1 1 111 1 1111 1 11 111 1 11 11 1 111111 111 111111 11 11 1.1 11 11 1 11 11 . 1"1 •• 11 1 111 . , 111 11 1 1. 11111 1 11• • • • • • • ••••• 1 11 11 11.11 111 11111 •• ,111 11111 11 1111 1 1111.1111"' 1 11 1 1111 1 11 1"1 1111 1 11 11 •• 11111111111111 111 1111 11 111 11111.,11 111"'III'IIII IIIII'I.II 'I"'III'I"~ The most satisfactory December volume of retail distribution in the larger cities of this district obtained in recent years was an outstanding feature of the business situation during the past month. Department store sales were not only 59 per cent greater than in November, but exceeded by 5 per cent those during December, 1924,. On the other hand, distribution at wholesale was seasonally quiet and reflected a substantial decline from a year ago, but such a decline was due in part to the fact that trade in wholesale channels was exceptionally brisk in December, 1924,. The records for the year 1925 show that trade in most lines compared favorably with 1924" and late reports indicate that trade early in 1926 is proving quite satisfactory. Other indices disclose that general business and industrial activity at the close of the year was well in line with that at the close of 1924,. Bank debits to individual accounts Were 7 per cent above November and slightly higher than in December of the previous year. The December valuation . of buildillg permits issued at the principal cities reached the second highest total of the year and was 17.0 per cent higher than a year ago. Construction during 1925 was the largest o~ record. Production and shipments of cement from Texas mIlls during De.cember showed a substantial increase over last year, but the production and shipments of lumber de- clined. The deposits of member banks on December 23rd were approximately $3,500,000 greater than on the same date in 1924 and the district's banks as a whole are strongly fortified with large cash and secondary reserves. While borrowing at the Federal Reserve Bank continued relatively light, it is significant that it is noticeably above that of a year ago. The insolvency statistics for December disclose a noticeable improvement in the business mortality rate as compared to the previous month, although the volume of liabilities involved was substantially larger than for December, 1924. Agricultural and livestock conditions throughout the district are generally good and present a marked contrast to the unfavorable outlook at the opening of 1925. The recent rains have brought relief to those sections where surface moisture was needed for the small grains and have left a fine season in the ground. Farm operations are progressing satisfactorily. Livestock are wintering well and practically no losses have been reported. Reports indicate that feeding has been necessary in only a few localities. Market prices on most classes of livestock reflected an upward trend during the past month. CROP CONDITIONS Although hampered to some extent by the cold weather, t4e district's farmers took advantage of the generally fair weather and made fair progress with their farm work. This Work in the coast section of Texas was greatly retarded by the excessively wet ground, and dry weather is needed so tha~ farm operations may be resumed. While the small raInS in some sections suffered somewhat during December ~om the lack of surface moisture, the recent rains have re· lle,:ed this condition and these grains are now reported to e In fair to good condition. Some damage to oats resulted from the freezes. The recent rains put the soil in fine shape for spring plowing. The Department of Agriculture estimated that there were 1 780,000 acres sown to winter wheat in Texas during the f~ll of 1925, as compared to 1,822,000 acres in the fall of 1924., and 1,469,000 acres in the fall of 1923. The picking of cotton is now nearing completion. Practically all the cotton remaining unpicked is in the Northwest section, the staple and grade of which is reported to be very poor. Prior to January 1, 1926, there had been ginned in This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 2 Texas 3,870,900 running bales, as compared to an estimated production pf 4,100,000 SOO·lb. bales. The damage to the citrus and hardy truck crops in the Rio Grande Valley section of Texas resulting from the freezes during the latter part of December and early January was small to moderate. LIVESTOCK Seasonably cold temperature has prevailed over the district's range territory during the greater part of the past monh. Due to the light precipitation during December, ranges in many sections at the opening of the year were becoming dry, but this condition has been relieved by the recent rains, and ranges, with the exception of a few localities, are in generally fair to good condition. Livestock has suffered but very little from the cold weather and practically no losses have been reported. There has been some shrinkage in livestock but less than usual at this season, due partly to the absence of snow, which permitted uninterrupt· ed grazing on the ranges. Some feeding in a few regions was reported. The receipts of cattle and sheep at the Fort Worth market during December showed a gain over the previous month, but receipts of calves and hogs declined. Receipts of all classes except sheep were less than in the same month last year. The cattle market during the month was generally satisfactory with the supply at most times clearing at better levels than during the previous month. Prices on most classes at the close were higher than the month previous. Calves showed considerable strength during the latter part of the month and at the close were selling at the highest level of the month. Hogs cleared to a good advantage during most of the month and during the last week the Fort Worth market enjoyed the distinction of being the highest market in the country, due to the short supply and the heavy demand from Fort Worth territory. Sheep and lamb prices ruled generally steady. Movements and Prices C!J ........... IIIIII .. UII .. IU ... IIIII .. IU ...... UIlIlIIlU .. III .. II ..... III1 ........... 1I111I1I1I1I.IIUlflUIIf.ll1lll rl!l :: FORT WORm LIVESTOCK RECEIPTS December December Loss or November E :_~ Cattle Calves :: Hogs E Sheep W~81 ......._ ........... •.....................34.324 •.•_....._..........16.676 __ ................ 28.780 ElI••••••••••••••••••••• 1;1 ... 18l7i•22947782 41.966 20.682 : Loss or ~r.:~64! !g.~8!11 t89i.,n02~70 LL L 26.280 G 8.098 19.684 21.767 L 2.968 G 6.968 I E ;; The December net receipts and exports of cotton at Houston and Galveston were slightly less than in the corresponding month last year. Exports of cotton from all United States ports from August 1st to December 31st this season show a slight increase over those for the same period last season. m , I •• ,II •••••••••••••••••••••••••••••••••••••••••••••• 11, •• ,' ••• 1, •• ,1111111,.,1, •••••••••• ,1111111111111111111"111111 11!] ~ COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON ~ _ December December Aug. 1st to Dec. 81st _ 1926 1924 This Last E Senson Sea.on : 680.668 648.816 2.269.797 2.714.464 E 468.679 479.464 1.668.688 2.161.078:: ................ ................ 768.442 610.547: I E : E Net receipts ................_ :: Exports .... _...._.... _.... _ m Stocks. Dec. 81st - ...... L!.,.,IIIIIIII.,IIII.,IIIIIIIIIIIIIIIIIIIIII'IIIIIIIIIIII1.,llfllll'I.,.I.,IIIIII""'IIIIIIIIII.,.,I•• 111111111111111""0 8 ....,11111111111111111,.,1 •• ,1,.,111.,111111111111111 •• ,11111111111111111 •• ,1111111111111111.,1""11111111.,.,IIIIII. I 1!J g , ~ :: g GALVESTON STOCK STATEMENT Dec. 81. Dec. 81. : For Great Britain ...._................_... _ .... _..........__ For France .. _.......................................................... 19:;.700 21.800 19;;'089 8.800 Total .... _............................_.................._............ 768.442 610.647 Ig f~~c~~~!:.!~f~1tA::~~::~~::::~::::~::: :: : : : :: :: .6:!:m § E I§ 6:H~~ I!l rl II ........ ' ' ' , , ' II" II III .. II II 11111 II 11"''''''''11''', 1111 II 111 .. 11 11"'''11 II II I .. ,,, 111111111 ... 111111111111111110 rn.... 11"""'"II II 11.1111 1111""'"II 11 ...11.", 11""'''''''',,,,,,., 111 •• 11",,,1.,,.... 11 ... ' ... 11111111 •• 11 ••• 11'9 E HOUSTON COTTON MOVEM"ElNTS :: ~ Aug. 1st to Dec. 81st E December December :: 1926 1924 This Last E :: Seaaon Scaaon:: E Recelple-Grou ........_ 697.916 686.069 S.782.269 3.624.670 S :: R eceipt.e- Net .... _...... 866.061 867.200 2.169.676 2.068.482:; E Exports ........................ 196.968 288.866 1.169.444 1.070.886, .§, Stocks, Dec. 31.t........ • .........•... _ ............. 776.011 688 .299 c l!Ia •• '.I ••• I •• '., ••• IIII ••• I.,I.I.IIIII •• I.I.III.,I.I.1'111111.111."",1.1,1,11,1, •• 1.1,111.1.1.1"',.,1.1'1.IIIIII.I •• I!} 1!l...... I ..... II.I.I.III1I1I1 ... IIIIII ..... II ......... IIIIII.II ............. I ...... II II •• 1I.111I .. 1t.1I1I1I1I ... 1I1.1I1I 18 :: 1_ : :: : SEASON'S RECEIP'l1S. EXPORTS. AND STOCKS AT ALL ~~, 5~:f~.:;~:~~~G~ :~:~16r8;06:.·i6ni98i : i4:7i8 ;:'~4i 7:8~ L." Japan-China ........................... . Mexico ...._.........._.........._.... _.... Total foreIgn ports ..._............. Stocks at aU U. S. ports Dec. 81st.... 19.886 4.490.804 1.748.898 :: :1___ 14.819 4.411.664 E 1.686.616 E ~1I11.1I1I1I ... IIIIII.IIIIII.IIt.IlItII.I ••• lllttltlllllllllll .. II .. II.,.1I1111 1111.111111111111.1111111111.,.,111111"0 II ••• IIIIII •• ,III ••• IIIIII ••••• 111.11111.111111 •• 111.1111 •• 111.11,.11111111111111111, ••• IIIII.I.II!) 111 ........ 11111 .................. 111 .. 111111111 ........ 11111111111 ................. 11111111111111111111111 .. 11 .. : E Cotton Movements COMPARATIVE TOP LIVESTOCK PRICES 1118 : I~~~~~~f~:::~~~ D~l!! D1fl N°;~ifll E Lamb•... _ ...... __ ........_........ _....... _.......1 16.60 14.26 16.00: 8.11 •••••••• ., •••••••••••••••••••••••••• ,,1., ••••••••••••••••• 1•••• ,., ••• 1.1 ••••• , •••••• , •••••••••• ' ••• ,','.,.,.,I""'I!) C!l •• II.II .. U.IIIIIIII.IIII ..... III.IIII.IIIIU ............ IIIIIIII ... IIIIIIII.III1I1I1.1.I.II.I,I ... ".IIIII •• IIIIIII.I II"!"I: SPOT COTTON PRICES ~ (Middling basi. ) g _~ December. 1926 Jan. 16. _~ : High Low 1926 : : New York ...._.......... _.... _.... _.......... 21.10 19.16 21.06 : :: New Orleans ........_........................ 20.00 18.77 2061 E :: Dallas ....- ........- ........ - ........ - ....... ~.19.96 1820 19'86 ; Houston .... _.................. _.................. 20.36 19:20 20: 76 _ : Galveston ........................................ 20.40 19.26 20.90: [!]I•••••••••••••••••••••• I.I •••••• I ••••••••••••• I.I.I •• 1""" ••• 1"""""""""'11".,.1"""1".1.1 ••• III •• ' •••••• [!) : g i I (!J .... IIII .......... I1 ................... IIIII .............. I1 ....... IIII.IIIIII .......... 11 ....... 1111 ...... ,.1111 ..... 11 .. ,11. 11 ,.1111.1 ... 111111 ........ 1111 .............. 11.11111111 .......... 11111111 ..... 11.1111 ....... 11 .. 11." ....... 11111111 .... 111.9 COTTON CONSUMED AND ON HAND UNITED STATES COTTON GROWING STA'IlES Aug. 1st to Dec. 81st Aug. 1. t to Dec. Sl.t Dec. Dec. Dec. Dec. Last season This senson Tbis season 19241926 Last season 1926 1924 676.271 866.262 1.627.468 688.789 899.908 tton consumed 1.780.606 2.698.979 2.869.007 tton on hand at··;i;.d··of..;;;·.:;nth·;···_········ ....... _ .. _ ... . .......... _ ... 867.676 ................... 1.104.001 1.717.972 eetabllahments .......... in oonauming .. -............... 1.819.786 ~a) 4.843.421 ................. ........... _... 5.889.070 5.608.066 b) In public .torage and compresses .. .. ...... -........ .................. 4.616.91 ~ i 8" ........................................................•............................................................................................................................................................................................~.J COTTONSEED PRODUCTS The average price of all classes of cottonseed products cember was lower than in the previous month. The volume shipped from 63 reporting mills in this district during De· of such shipments was well in line with those made in No- MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS vember. These mills purchased 97,072 tons of cottonseed at an average price of $35.30 per ton, as compared to 123,· 675 tons in November at an average price of $33.61 per ton. (!J ..... IIIIIII ...... IIIIIIIIIIII ... III .. IIIIIIIIIIIIIIIII ... IIIIIIII ... IIIIIIIIIIIIII1111111111111111111111111111111111118 : STATISTICS ON COTlI'ONSEED AND COTTONSEED PRODUCTS: ~ 'rex8B United States § ~ Aug. 1st to Dec. 31st Aug. 1st to Dec. 31st § : S;:::'~n E ~. §::: . S:::.' Cottonseed received at mills (tons) ... ~... . Co{:g~:ie~ ~~~~~~~ 1,187,000 S~::;n S~i~n 1,841,000 4,401,000 • 8,761,000 .. .. _.. 816,000 900,000 8,014,000 2,548,000 Cottonseed on hand (tons) .............•.... _.... 892,000 448,000 1,417,000 1,281,000 Crudo oil produced (pounds) ................ _ 228,898,000 259,952,980 867,219,000 762,483,401 Cad~~edn~t~n~~ pro· Hulls produced···it;;;;~i" 884,000 281,000 418,049 260,618 1,400,000 829,000 1,163,587 726,684 ••§ Li(6~~~I1:~rob~~~:~.......... 158,000 167,981 664,000 482,167 :. : ~ S~=;n Stocks on hand Dec. 81st: i . Crude Oil (pounds) .... Cake and meal (tons) S Hulls (tons)................. : Linters (600-lb. bales) ~ is,706,OOO 28,022,787 5B,OOO 29,818 78,000 86,152 44,000 41,999 3 any material increase in the consumer demand will be immediately reflected in wholesale channels. Late reports indicate that while retailers are following a very conserva· tive buying policy, business is proceeding at a very satisfactory rate and that the outlook for the new year is encouraging. General quietude prevailed in the wholesale dry goods trade during December. The month's sales were not only 50.0 per cent less than in November, but were 16.0 per cent below those of December last year. However, it must be remembered that December, 1924., trade was unusually brisk. Sales during the last half of 1925 were 12.2 per cent less than those during the same period of the previous year. Reports indicate that business has shown an improvement since the first of the year and that dealers generally are expecting a satisfactory spring trade. 64,699,000 69,888,827 259,000 166,986 202,000 214,681 167,000 167,280 There was a seasonal lull in the demand for groceries during the past month. The December sales were 3.8 per cent less than in November, but were 0.7 per cent above (!] [!) those of December, 1924_ The increase over a year ago is OOTTONSEED PRODUCTS SHIPPED AND A VERAClE PRICE : encouraging in view of the fact that December, 1924, sales REOEIVED :.~' December, 1926 showed a large gain over the corresponding month of the previous year. Sales during the second half of 1925 exProducts ,Average Price E Shipped F. O. B. Mill := ceeded those of the like period in 1924. by 4.1 per cent. The • Crude 011 •••. _...._.... _.... _.... _........••_•.. _ . 28,274,090 lbs. $ .0846 per lb. E demand in most sections of the district appears to be very i Oake lind meal... ... _.......................·......... 40,864 tons 32.90 per ton E : Hullt .............._.................. _........ _........... 25,080 tons 9.07 per re n :: good. Prices showed no material changes during the mo.nth. := Llntors _.... _........ _........_............. ~..... ... .. 7,166,7681bs. .04 05 per .,J; The outlook in the grocery trade is reported to be generally promising. OOTTONSEED REOEIVED AT MILLS GJIII., ••••• ,IIIIIIII.,IIIIIIIIIIIII.,II •• llr.,., •• ,II.r",1111111111111111 11 , ••• ,11111111111.1'111111111111111IIIIIIIIIal!) ,11111.11.11111.1111111111" .IIIIIIIIIIIIIUU' 11111111111111111111111111111111111111111111111111111111111111111111111 I 8 11.1.1.1.1 • • • 1.,1111 •••• 11111111111111111111111111111111'11111"111,1"11"1'1"11,'11111'1'1111"'1111'111.I.,I"''''L!J December 1926 Cottonseed received ................................................ 97.072 tons Average price p er ton (inc. fl'eight) ................ $85.BO per ton November 1926 128,676 tons $88.61 per ton TEXTILE MILLING Some improvement has occurred in the textile milling situation there being more stability in prices and a better underton~ to demand. However, conditions generally are still unsatisfactory. There were 2,238 bales of cotton consumed by reporting mills in December, as compared to 2,012 in November and 1,965 in December, 1924.. The December production showed a gain of 5.5 per cent over ~e previous month and 12.7 per cent over the correspondmg month last year. Orders on hand at the end of December were less than at the close of November, or at the close of December, 1924.. Stocks on hand at the close of December were greater than at the close of the either of the two months mentioned above. m.... :: ~: IIIIIII ••• ' •••••••••• I ••• IIII •••••••••••••••••••• 1111111,.1.111111111111111111 1111 11111111 1111111, .,111111., ll llt l l t;) 'I1EXTILE MILLING STATTSTTC S :: ~.; December December November 1925 1924 In25 ~ Number bnlea cotton consumed.... _ 2,238 1,966 2,012 § E Number spindles active_ .......... _...... 69,928 69,928 69,928: ,., Number pounds cloth produced...... 1,017,908 908,824 965,142;: ~"IIIIII .... IIIIIIIII .. IIIII .. ,III .... IIIII ... IIII .. I .. I .... IIIIIII .. III .... lIlIfI .. III .. 1I1I 111 .... 11 ... 111 .. 1111 ..... 8 WHOLESALE TRADE While the demand for merchandise in the wholesale chan· nels of distribution during December was seasonably quiet, some lines showing substantial declines from a year ago, it ~ust be borne in mind that trade was unusually active durIng December, 1924.. The majority of reporting lines trans· acted a larger volume of business in 1925 than they did in 1924. A favorable factor in the present situation is the fact that retailers generally are carrying small stocks and There was some improvement in the demand for farm implements during the past month as was reflected in the increase of 44.9 per cent in the sales of reporting firms. However, the December sales were 29.7 per cent less than in the corresponding month last year. Sales during the la8t half of 1925 averaged 22.9 per cent less than in the same period of 1924, and were the smallest of any similar period since 1922. The demand for implements has been materially affected by the drouth in Central Texas and the freeze in Northwest Texas, which greatly reduced this year's cotton crop in those sections. However, dealers are looking forward to a better demand as soon as work on the new crops gets well under way, provided good farming condi· tions prevail. The December sales of reporting hardware firms were 8.0 per cent greater than in November, but were 6.1 per cent less than in the same month last year. Distribution during the second half of the year was practically the same as in a like period of 1924. While buying in some sections is still light, most sections report business to be about normal and showing improvement. The outlook is reported to be satisfactory. Prices are firm with a slight upward trend. The December sales of reporting wholesale drug firms reflected a gain of 2.7 per cent as compared to the previous month, but were 3.3 per cent less than during the same month last year. While buying is generally light in many sections and retailers are not buying very far ahead of actual requirements, some improvement has been noted since the first of the year, especially in some of the larger cities. Most dealers appear to be optimistic regarding the outlook for the new year. Prices showed but very little change during the month. Some dealers report collections below normal. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 4 CONDITION OF WHOLESALE TRADE DURING DECEMBER. 1925 Perce nl ,, ~e of Increase or DecreDs e in - Nt e S acsI -Stocks-Net Sales- July 1st to Dec. , 1925 Dec., 1925 date compared .with compared with compared with same period Dec. Nov. Dec. Nov. last year. 1924 1925 1924 1925 Groceries ..................... + .5 -18 .2 .7 - 3.8 + 4.1 Dry Goods .................... _ - 16.0 - 50.0 - 12.2 + 10.5 - 1.5 -22.9 - 8.6 + 6.2 Farm Implements ..... .. - 29 .7 +44.9 2.7 - 2.4 + 9.9 - 7.0 Drugs ........................... - 3.8 .3 + 3.1 + 3.5 - 6.1 + 8.0 + ~ § ~" ,~~~~'~~,~,',·;;;;;;7;:;;;~;.-;" ",.,1,.",1" " .,.111'1111'1111111111'llllfll."!~tll'ltl lllllll" II"1111.1.10 RETAIL TRADE A brisk demand for merchandise at department stores throughout this district during the holiday season was the characteristic feature of the retail trade situation. The December sales of reporting department stores reflected an increase of 58.6 per cent over the previous month and were 5.0 per cent greater than in the same month last year. Total sales of these firms for the year 1925 exceeded those of 1924 by 4,.8 per cent. Late reports indicate that the January clearance sales are meeting with good success. Stocks at the close of December were 20.4 per cent less than at the end of the previous month, but were .6 per cent larger than at the close of 1924. The percentage of sales to average stocks during the year just ended was 257.6 as .compared to 245.7 in 1924,. This indicates that the department stores turned over their stocks 2.6 times in 1925 as against 2.5 times during the previous year. The percentage of outstanding orders to the previous year's purchases at the close of December was 5.6, which shows that the stores have only a small volume of goods purchased which have not been placed in stock. The percentage of December collections to accounts receivable as of December 1st was 39.3 as against 38.7 in November and 4.1.1 in December, 1924. (i]1 111 • • 'III.tl . t . ,l f l.,I I """""JII.,.,II I .IIII"11 11 1,. 1., . 11 1 111 11,1 11.1 • • 1, 111' 1111111 1' 1 111' 1 11" 11111 ' 11 11'1 1' 1"1 ' 1111'111 11'1111"" 11 1 11 ' 1 ' 1'1111 1 111 1 ' 1 1 ' 11 1 1" "' 1 1' 111 "'1 1111111'1' 1 11 1 111 1 '111'111111111 1 ',111,.1.11'111"1'1" ""' •• ," •• 1 § BUSINESS OF DEPAR'I1.MEN'r STORES ;: T ot,, 1 00 1""·Dallas Ft. Worth § Dec., 1925, compared with Dec., 1924,........... .................... ........................ + 6.2 + 1104 E Dec., 1925, compared with Nov., 1925 ...... .......................... _....................... + 55.8 + 67.3 § Cre i~·al~~to date compared with same period l!l8t yC Rr ......... -.... .. .... .. + 7.6 + 7.7 ;: ;: Dec., 1925, compared with Dec., 1924..................... .. ................................. Dec., 1925, compared with Nov., 1925........................................ .... .... _....... Stoct:.:: 1st to date compared with Bame period IRBt year .......... . _...... .... .. § E ;: I. Dec., 1925, compared with Dec., 1924.................................................... .... Dec., 1925, compared with Nov., 1925 ................................_...................... :::~1:g 11~ ~;;2;~;=:;~·:::: ::: : : Jan. 1st to Dec. 31, 1924................................................................................ § Jan. 1st to Dec. 31, 1925.............. .................................. .............................. . : Rnl!o of outstanrling orde~'s lo Inst year's purcha.""..... ........ ..... ... .. ...... ........ ;: Rati~ of December collecllOns to accounts receivable due and outstand: mg Dec. I, 1925 ............... ..................................... ................................_...... ......... Gl·.It."11111111 .11 11 11 11111111 11 . 1 1111 '1''' " 11 11 1" 11 111 " 111111 1 1.11111 1 1111 1 ' 1111 . , r 1111 11 1 11 1 1 f E Houston + 12.6 + 66 .3 + 7.9 A ll Others Total District : 4.0 + 5.0 E + 52. 2 + 68.6 § 1.1 4.8 E + 8.0 + 45.9 + 13.4 + 20.7 + 57.5 + 16.7 + 12.2 + 55.3 + 10.2 + _ 31 17:6 + 84 _ 22:4 - 286.8 258.6 6.7 212.7 225.4 2.0 266 .2 291.4 5.9 265.1 257.0 1 4.2, 245.7 267.6 ~ 5.6 : 37.0 37.2 40 .0 43.7 1 39.S :: :: m 53 . - ;;; 2.5 + 50.6 + 3.8 + 6.9 ;: + 50.4 ;: + 10.2 § = 86 22:5 + !l:g - 20' I 6 § The December volume of payments by checks drawn on commercial banks in the sixteen principal cities of the Eleventh Federal Reserve District amounted to $821,4.20,000, which represents a gain of 7.2 per cent over ' the previous month and a gain of 1.7 per cent over the corresponding month of 1924. I § I::; _;~: filii 11111 I I I I I ,1 11 1111 t, I.III'IIIIII II ,111 I 1111 11111111111111111 11 .11 11 .. 11. III 1111 1 III lUll II I 1 1 11 II II " 1111.11 11 11 11., 1 11 1 111 1111 111 1 1 t II l Ull I I I ' II J FINANCIAL [EJ :: l:J ber, showed a sharp decline during December. These acceptances totaled $3,015,299.28 on December 31st, as compared to $4,884.,772.86 on November 30th. The amount executed against import and export transactions declined from $2,867,301.89 on November 30th to $1,901,545.34 on December 31st, and those based on the domestic shipment and storage of goods declined from $2,017,470.97 to $1,113,753.94. during the same period. (!] 111 111 11 11 1111' 1111 1111.1111'11 1 11.111 , II .III"I"I U '""" . ... IIII'II II II .............. .. 111111.1 1 11 •• , 111111 1 111111' [!] CHA:~;~;O D;~;r~R~~D:~;O:;;5ber, ID~c~T ~~~~~uerQue $ 11,074,000 $ 10.396,000 19,262,000 22.355,000 g~frE'ao:: ::::~: l~:m:~~~ EI Paso ........... Fort Worth... Galveston ... _.. Houston Roswell __ .._... San Antonio .. Shreveport.. .. Texarkana .. Tucs on _.... _.... W nco ............... Wichita Falls... Total, 11th District..._ 25450,339769,000000 " 90.102.000 58.479,000 160,947,000 4.180,000 40,143,000 42,907,000 10,136,000 11,356,000 20,034,000 33,260,000 82 1,420,000 + 6.5 $ 11,447,000 - 13.9 19,031.000 l~:m:~~~ 2:~~:~ + 2. 7 + 5.5 + 6.6 - 15.2 + 2.7 +15.8 + 10.5 + 6.0 - 14 .6 + 12.3 - 16.5 +18.7 -808,042,000 1.7 248 .773 ,000 3 8 ,26 8 ,000 86,410,000 63,061,000 166,713,000 3,610,000 36,815,000 40,487,000 11,872,000 10,115,000 23,988,000 28,015,000 + - 3' 2 :_ + 1. l~:m:~~~ t~~:g 28885'0196,000°0 66,0 80;070,00 0 58.890,000 150561,000 3;776,000 86,475,000 40,216,000 8,846 .000 9,799 ,000 ] 9,886,000 29,641 .000 + 8 .6 6. 1 12.5 - 9.2 + 6. 9 +10.7 +10.J + 6.7 +14 .6 + 15.9 + .7 +12.2 766,027,000 + § 7.!:! tEl " 'I""III"II""""I'II I II " I'I'I""' I 'II I " "111.11 •• , 111.11111, • • • 11,11 1 1111 11 '1 " ,11 1 1111111 11, , ' 1't . l ll llt"'.lli The volume of outstanding acceptances executed by accepting banks of this district, after rising rapidly from a low point in June to the highest point on record at the close of Novem- Acceptance Market After showing a steady increase during the preceding four months, the deposits of member banks reflected a decrease during December, The demand deposits of these banks on January 6, 1926, amounted to $279,877,000 which was $5,914,,000 less than on December 2, 1925, and $5,443,000 less than on January 7, 1925. Their time deposits on that date were practically the same as on December 2, 1925, but $4.,631,000 greater than a year ago. The item "all other loans" (largely commercial) declined $2,44 1,000 during the month, but this was largely offset by an increase in loans secured by stocks and bonds. The investments of these banks on January 6, 1926, were $2,181,000 less than on December 2, 1925. Their bills payable and rediscounts at the Federal Reserve Bank declined $2,562,000. The ratio of loans to net demand deposits was 87 per cent on January 6, 1926, as compared to 86 per cent on December 2, 1925, and 83 per cent on January 7, 1925. Condition of Member Banks in Selocted Cities · . 4 MONTHLY RE'V IEW OF BUSINESS AND INDUSTRIAL CONDITIONS 5 e 1;) ...... 111 .. 111 .. 11111111111 .... 1111111111111' ...... 111111 ......... '11' .. 1111111111111111 .... 111111111111 .. '1111111111111' .. 11 . .. 1111111111111111111 ...... 1.1 ..... 111111 .................. 1.. 1111111111111111111111" ...... 1111 .. 11111 1. 2. 8. 4. 6. 6. 7. 8. 9. 10. 11. E Number 01 reporting banks ....•........•........•........•.... ,.................................................................. U. S. securities owned....................................................................................................................... All other stocks, bonds and securities own ed............................................................................ Loans secured by U. S. Government obligations...................................................................... Loans secured by stocks and bonds other than U. S. Government obligations............... All other loans ................. _..........................................._................................................................ Net demand deposits ... _ ............................................................................................................... Time deposits ................ _ .......................................................................... _..................................... Reserve with Federal Reserve Bank ..._ ............................................................................ _ .......... Bills payable and rediscounts with Federal Reserve B:mk........................................................ Ra:~!.li;:I:: ~~\ydelrea~~ ~ep:ri: ..6·:.. ······..············..······.. ·······.. ····· ...................................... J a n. 6, 1926 49 48,084,000 28,121,000 8,606,000 79,079,000 289,321 ,000 279,877,000 96,388,000 28,958,000 6,981,000 87% Jan. 7, 1925 49 49,094,000 20,280,000 8,8 80,000 67,786,000 282,677,000 285,820,000 91,707,000 82,134,000 2,905,000 88% Dec. 2, 1925 49 50,262,000 23,974,000 3,173 000 77,568;000 241,762,000 285,791.000 96,528,000 30,440,000 9,548,000 86 % 8 1•• 1.1.11111111111.11 •• 111.11.1.1111111111111111.1.111 •••• 1.1 •••• 11.1.1.11111 ••••••••••• 11 ••• 1.1 ••••• 1111111111111111111 . • 1" 1.1111111111.1.1'1111 1 111.1,111111,,,111111111111111111 •••• 11.1"111'1.111 •• 1.11",1.1""'111111 •••••• I •• IIIIIIII •• ,III ••• 111 1!1 The savings deposits as of December 31, 1925, of 93 banks in this district which operate a savings department were ninetenths of one per cent less than on November 30th, but were Savings Deposits 12.1 per cent greater than on December 31, 1924. There were 244,386 savings depositors on the last day of December, as compared to 243,408 at the close of November and 224,774 at the end of December last year. 8.1.1.1111 .. 1111 ............ 111.11 1 11111111 .. 1111111111111111111111111111111111 .... 11" ... 1I1I1I1I1I1I1I1I1I11I1I1I11I.11I .. lIlnll .. III ... I ........... Ulllllll .. UIIIIl ... UU .. I .... UIIIlU .. IIIIIII ..... I .. IIIIIII ................ IIII ........... I .. :: SAVINGS DEPOSITS December 81, 1925 Beaumont ................................................................... _ Dallas .............. _.............................................................. EI Paso ... _.................................................................... Fort Worth .... _....................................... .......•............... Galveston................................................ .......................... Houston ......................................................................... San Antonio .................................................................... Shreveport ................................................................... Waco ............................................................................... Wichita Falls.................................................................... All others.......................................................................... ; December 31, 1924 Number of A, Reporting Number ot f'mount of Number of Amount of Bankll: Savings Savings Savings Savings Depositors Deposits Depositors Deposits 8· 1,884 922,608 1,695 991,654 7 46,796 16,898,036 41,579 18,728,824 8 16,713 5,70~,712 15,659 6,205,318 3 12,986 4,274,489 12,214 8,778,977 8 12,987 8, 019,407 12,950 7,804,881 18 68,60Q 24,888,777 55,787 21,614,155 6· 19,725 11,842,832 17,785 11,222, 782 4 23,432 11,291,777 22,291 9,888,686/ 6 7,946 4,876,595 6,164 8,818,778 8 7,014 2,499,465 6,502 1,446,254 48· 81,256 18,051,998 80,298 18,048,892 Total .................. _.................................................. _ 93 244,886 108,711,686 222,774 92,687,9~1 November 80, 1925 I nco or Number oflA.mount ot Dee. Savings Savings Depositors Deposita - 7.0 1,846 973,683 +19.5 46,272 16,591,752 - 8.1 17,083 5,547,796 t18.8 12,668 5,257,900 2.8 18,219 8,055,063 14.9 68,104 24,890,087 t 5.5 19,540 11,667,992 20.3 28,848 11,126,126 46.9 7,882 4,785,899 + 72.8 7,024 2,628,870 None 81,427 13,100,045 I +12.1 248,408 104,620,218 G]'''.IIIIIIII .. tI.IIIIIII.UII •• I •• lllltlllllt.,IIIII ' '.,III1I.11111fll l lll'IIIII I III'I.IIIII"UIIIIIIII III I.IIIIIIIIIIIIUI.IIII1I1.11 ............. 1 .... "" ...... 1111111111" ..... 11 ..... 1111" .. 1 ....... 1111.11111 .. 1111 ... ~ .'IIIIII.flUIl .. I I I I I I " " ' l l l l l l l l I f l l l " I I I I I " ' I " I I I I .. I'IIIII .. 1I .. 111.111.11111 .. 1.1" Rate charged cu.tomers on prime commercial paper ouch as is now eligible for rediscount under the Federal Reserve Act : Il:l ~~~~l~: ~~66';~~t~::.~:::::::::::::::~::::::::::::::::::::::=:::::::::: :: 0 ~: : Rate R~~~ef~:~~ed ...~~~... ~.~.~.~.~... ~~ .. ~.~~~~ ...~.~~~.~:... ~~~.~.~.~ .. ~.~ .. ~.~~~~ on ordino ry commercial lonns running 30-60-90 days : ~ Dal~~NUARY:I~:~UNT ~~T:rth !~:~ t~ !~:~ 4-6 6-7 5·6 4-6 6-8 6-8 Sccured by Liberty Bonds a nd certificates ot indebtedness (not including loans to ennble purchase of bondo) RRle on loans secured by prime stock exchnnge or other cu(~jn~:~I~~~r~................................. ~ .............. _.. _.................. 6 8 6-8 R celpts, etc . ................................................................. _............. 6-6 4 1J.a-6 6-8 7-8 6-8 6-8 ~ Rnt~(b ~nti'::~m·~~dit;;.. ··p;~;....~;~~;;;d....b;....;;;;h~~-;·.. ·~-;;:I : ,§.I".~~"~~ ?,';~~~~,,l,?~.~~::.;;;:~:.::;;~~.;:;:;:.:,:.:;,:.~::~·.;;;;:;;;:~::~;·.::;:~·;:;;; ... .. " U I l • ., .. UI • • '~;~IIIIIIIUII Deposits' of The combined deposits of member banks on Member Banks December 23, 1925, were $9,289,000 less . than on November 25th. This represents a declme of $5,758,000 in demand deposits and $3,531,000 in ~' ................................"' ................................................................,.............. " 'iI E : = DEPOSITS OF MEMBER BANKS ~ : : !fec. E 24, 1924 ............... :: Rn. 28 , 1925 ................ ;; ~e~ 25, 1925 ................ E c. 25, 1926 ................ § ~pr. 22 , 1925................ :: J ny 27, 1925 ... _ .......... EJ ~ne 24, 1925............. : U y 29, 1925............... ~ ASeUfC. 26, 1925 .......... _. : ~t. 28, 1925 ............ : ~c , 28, 1925 .... _........... : beo v. 25. 1925 ............_. ~ c. 28 1925 All Member Danks 160,684 160,896 168,780 165 ,681 166,006 167,218 168,600 11)8,110 169 .415 166,601 166,821 168290 BankS in Cities ~ with a popul .... : lion of over : a20,088 84 0,811 116,866:: 35R,778 121,061: a5S,40S 118,648: 848 ,191 ; 117.568E 328,4811117,285 : 321,468 ,' 119,240:: 819,081 120.957 :: 822 ,664 1120,526 :: 836,007 · 121,022 : 849,llt 1120,740: 35~, 2\l 4 , 120,631:: 852,106 ' 118,844 :: ~21 , 650 804,459 392,885 :!77,145 267,148 261,957 268,000 296,777 818,802 822,213 816 648 44,219 46 ,884 46,182 47,968 48,771 47,978 47,648 47,685 48,898 45 ,861 46 ,19 0 44,446 + + + + - 5.2 1.2 2.8 18.7 .4 .2 1.5 1.5 1.9 4.7 .4 .9 111111111 111I11I'11I"I'""~ .. UlI •• ' •• Houston pre;~~n:n::::: ~:: 5-6 ~ 6-6 5-6 ,I~,III.I ,IIIIIUIII~~,IIIIII.I.IUllfll ,~:~ ... .. .. II .. 118 : o~:E Waeo t~ t~ 6-8 5-6 4'h-6 6 6-8 6-7 6-8 6-8 6-7 IIIIIIIIIII',.~:~lI.II.III ~: : § ~ 6-8 : • • I. II I. H • • , I ••• ; time deposits. The demand deposits on the former date were $1,738,000 less than on December 24, 1924, but this decline was more than offset by an increase of $5,183,000 in time deposits, thereby reflecting a. gain of $3,4405,000 in total deposits. : : Sanks in Cities with a population of Ices D~~d ~f~ De~::~d 15::e Dema~~'OO;ime ~ 670,487 168,107 322,8 61 41,676 848.126 11~,481 E 660,847 680,428 662,862 685,671; 606,626 688,601 581,088 690,664 632,781 667A13 674,507 668749 [ nco or Dee. .. 1111 ...... 111 .. ""11 ........ 1 . .. 111" .. 1111111 .. 11111 ..... 11 .... 11I" .... IU .... '" .... IIIII .... III ... I I I I .. I1 ....... III .. I1 ..... III .. III .. IIIIII ...... :: :::' 0 "1B ~11t ......I.. :.. II .. I.. ~·;::;;~·;:;;;~·,III ..... :II ..... IIII ..~I ...... II .. II:1 11111111111111111111 ...... ,1 ... 11111.11111118 Operations 0/ the Federal Reserve Bank The year end liquidations of the Federal Reserve Bank brought member bank borrowings down to $4,,006,902 on December 31st, as compared to $10,852,751 on November 30th, and $2,713,180 on December 31, 1924. There were 42 borrowing banks at the close of December as compared to 67 banks at the close of November and 36 banks at the end of December, 1924.. Member bank borrowings have increased considerably since January 1, 1926, but it will be remembered that after January 1, 1925, these loans did not show any appreciable increase until the latter part of April. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 6 The total volume of bills held by this bank declined from $37,830,935.96 on November 30th to $32,877,483.04, on December 31st distributed as foll ows : Member banks' collateral notes (secured by U. S. Government obligations ) ......._............................................................................. $ 1.792.700.00 Redis counts and all other loans to m ember banks........................ 2.214.201.76 Open market purchases (Ba nkers ' acceptances) ............................ 28.870.681.29 Thtal bills held ................. ,.............................................................. $82.877.488.04 Federal Reserve notes in actual circulation at the close of business December 31, 1925, amounted to $4,7,436,585, as compared to $4,7,830,620 on November 30th, and $55,64,0,950 on December 31, 1924. Member banks' reserve deposits on the last day of December were $66,202,794., which represents an increase of $5,054,527 during the month. On the last day of 1924 these deposits amounted to $65,828,199. FAILURES The closing month of the year witnessed a sharp reduction in the business morality rate in the Eleventh Federal Reserve District. There were 49 defaults during December with liabilities aggregating $608,088, as compared to 71 failures in November with a total indebtedness of $995,237 and 52 insolvencies in December last year which owed $368,159. There were 695 suspensions in this district in 1925 with a combined indebtedness of $10,94,7,609, which reflects an increase of 6.6 per cent over the previous year in the number of failures and an increase of 17.1 per cent in the amount of liabilities. I rn 1111" .11111111111111111111111111111111111111111111 II 11'1111111" III1IIII It 1I11111111111I11111I1.,111111111111I1I1I1111[!] COMME RCIA L FAI LURES 1925 1924 MonthLiability Number Liability N umber January .................................... .. 78 $1.812.886 68 $1. 170.988 February ....... _.......................... . 79 1.670.801 67 1. 280.648 March ........................................ .. 69 960.677 682.986 74 April .................:........................ .. 69 ' 792.118 56 881.286 May .......................................... .. 66 1.966.651 68 720.662 June ........... _.............................. . 44 636.229 766.071 50 July .......................................... .. 38 360.729 40 242. 424 Augus t ....................................... . 66 62 988.431 1.089.188 September ................................ .. 46 34 680.4 56 412.870 October ...................................... 65 46 690.486 54 3.300 November ................................. . 71 996.287 904.820 68 December .................................. 608,088 49 868.169 62 r=1 Tota l ... -................................ ---696 10.947.609 - 666 9. 846.761 PETROLEUM The total production of crude oil in the Eleventh Federal Reserve District was greater in December than in November, there being 13,05I,416 barrels of oil produced as compared to 12,812,545 barrels during the latter month. However, when allowance is made for the extra day in December, it will be seen that the daily average production again registered a decline as there was a daily average production of 421,013 barrels, as against a daily average in November of 4,27,085, which represents a decline of 6,072 barrels. Drilling operations were carried on at a more rapid rate in December than during the previous month and new production was large, but the yield of oil from old wells was not sufficient to maintain production at the November rate. Of the 533 wells completed in December, 313 were successful and netted a flush production of 70,962 barrels of oil, and 8 were gas wells. During the previous month 505 wells were drilled of which 289 were flowing oil wells, which produced 59,829 barrels of crude oil, and 11 were gas wells. The daily average production of crude oil in Texas during December declined 4,305 barrels from the November rate, although there was a total of 11,268,050 barrels of oil produced in the state in December, as compared to 11,033,695 barrels in November. The Corsicana- Powell and miscellaneous fields registered such heavy decreases in production that the slight gains made in North and Central-West Texas and the Gulf Coast fields were not sufficient to prevent a decrease being shown for the state. Wilbal'ger and Hutchinson Counties continue to hold the center of interest, and some large producers were completed in the Gulf Coast fields. There were 1,783,366 barrels of oil produced in Louisiana during December, a total increase of 4,516 bar· rels from the previous month's production, but a decrease of 1,767 barrels in daily average production. During the period December 9th to January 13th, the posted prices of crude oil at the various fields of the district remained stationary, with the exception of Haynesville, Louisiana, where a decrease of 10 cents per barrel was announced. Crude Oil Prices § 1.:,1111 11 11 11111111111111 111111111111111111111111 11 11111 11 111111111111111 11111 11 11 II II 1 II II If II 1111 III 111 1 1I 1f1l11l1l 1l 11l.r!J m.III .I I. I III. II I I I •• • • •• III ••••••• ,I I I I I I . II II ••••• 111 . ll l lllllt' II • •• I ••• IIIII I II . I'I.IIIIIIII I II'IIIII I .111111111111,.,11 111 , ", 1' 1 . , 11 11 1,1.1 . 1 . 11 11111 1 1111 1, 111 ' 1" ' 11111""11 1 11 111 1 11 1'1 1111'11 1 111 111 1 111 11 ""III I I I I II I I. IIIIII I II • • •• , IIIIII I I I[!J E OIL PRODUCTION December Total Daily Average 8.128.100 100.746 2.166.646 69.684 2 226 720 71 797 November, Total Daily Average 2.997.240 99.908 Inc. 2 084946 67.88 2 Inc. 2' 805' 870 76.862 Dec. oUislOna ... _ ........ _............................ _........ _........ .;:::: :::: ,788 .866 .:::: 67.628 ,:;:::::: 1.778.860 .:::::: 69.296 Inc. ::::::: 4.616 Dec. Total. 11th Dilltrict.................................................... 18.051.416 421.018 12.812.546 427.086 Inc. 288.871 : § : Field North Texas ... _.... _ ................ _.... _.... _...................... _.... Central-West Texas .......................................................... East-Central TexM ......................................................... ~N~~~;hS~:L:.;::;:::::::::::: ort ::~ : Increase or Decrease : Total Daily Avg. ~ 126.860 Inc. 887 E 120.600 Inc. 1,702: 80 150 De 6 065 :: I~::: Dec. ::::: I 1.767: --s:on 8~ (!l.,I.I., •••• IIII I . , II • • I . ,I II I., •• ,111111 11 1111 1 11 11 1 1111111111,.1.1111111111111 111'111 1 1.,1"1 1 1,111111111111.11111111111 • • IUI I ••• • IIIIIIIIII I I . I IIIIIIIII '1 11 1 11"' •• • 11 • • 11 . , •• 1 11"' 1111111'.111111.111.111 1 .11 1 1 1 •• 1 1.11. 1 1.1 1 • • '111.1111111 1 111 111 • • m....................... I II •• II.U . , I .. I .. II II III I" 111111" It It lilt' lilt lilt '1111' ni l " " r It III r, 111'1' l ilt 11111 1 11111 I!l DECEMBER DRILLING RESULTS : FailProComInitial ures plct ions duce rs Production Field North Texas .................................. _ 19.60 4 302 178 129 Central-West Texas ..................... .. 9.24 6 87 28 6n East Central 'l1exas ........... ~ .......... .. 200 2 6 3 Texas Coastal .... _......................... .. 62 41 11 36.065 East Texas .... _............................... .. 280 6 6" Mis cellaneous fields ..................... .. 2.085 12 12"" Texas wildcats ................... ......... .. 26 35 6 30 Totals. 'l1exas ......................... . North Louisiana ... ~ ..................... . 499 34 298 23""" 201 11 67.454 8.608 Dec. Totals. District........................ 638 821 212 70.962 Nov. Totals. District........................ 605 300 206 59.829 "Includes 4 gas wells . ··Includes 2 gas weUs . • """Includes 2 gas wells. (!J ••I .. ....... . I I ......... .. ...... I ... . I •• I ••• I I .I II I II •• ••• 11. 111 • • • 1.... . . 1. 1 11.1 1 11.11'111111111 11 1••• 1 •• 11.11 ••• ".II.m 8 g 1!l 11 1111 11.1111 11 11 1 .. 1111 11 .... ... .,., .. 111 1111111'"11 1 111111 11 111111111 11 111111111111I1t1l.UII .... I ...... IIU.III. 1I 1 § CRUDE OIL PRICES TEXASJ~~2613. Texas Coastal ...................................................... .............. $1.60 North and Central rrexRs (44 gr. and above) ............ 2.48 J~~2r' Jan. 18. LOUISIANA1926 Caddo (38 gr. and above) ......._....................................... $1.96 Bull Bayou (38 gr. and above ) ........................................ 1.76 Homer (36 gr. and above) ................................................ 1.76 Hayncsville (83 gr. a nd above) ........................................ 1.66 De Soto Crude .................................................................... 1.80 Jan. 15. 1926 $1.86 1.16 1.10 1.00 1.20 $1.60 • 8.11 1 111 . 11 11 ... 1111 . 11 •• 11 11 1111 . .. 11111" '1"" 11 111 "."'11'" " 1 1.1111.111 . 111111 .. 1111 11 ..... 11 .... . 111 1 1111" . .... (Oil statistics compiled by The Oil Weekly, H ouston. Texas .) 8 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS LUMBER The usual seasonal lull in demand for lumber during December was evidenced by activities of the pine mills of the Eleventh District. Although shipments and orders fell off in volume, as compared to the previous month, production increased in an effort to make up for the loss during the previous month and in anticipation of a stronger demand following the year-end inventories. The footage of lumber produced at reporting mills during December was 8 per cent below normal December production, as compared to November production 19 per cent below normal. Shipments made from the mills amounted to a total footage of 5 per cent below the month's production, while in November shipments from the mills were a total amount 13 per cent above the month's production. Orders received during December called for 81 per cent of the production during the month, whereas the November orders absorbed 93 per cent of that month's production. Stocks on hand on December 31st were 15 per cent below normal stocks for that date, an increase of 1 per cent from stocks held at the close of the previous month. Unfilled orders on the books of the 47 reporting mills on December 31st called for only 54.,583,543 feet of lumber, while on November 30th orders remaining on the books of the 48 reporting mills called for 73,882,062 feet of lumber. I 7 ~''''I1'''''''IIIIIIIIIIIIIIIII''''''"''I1II''IIIIII'IIIIIIIIIIIIII''''IIII''''''111111111 IIIIIII.IIIIIIIIIIIIIIIIIIIIIG] ;.; § ~ :: :: :: :: :: :: :: :: DECEMBER PINE MILL STATISTICS N umber of r eporting mills.................................... 47 g_ ~hf:;:,~~~ ..:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~g:m:m ~:~~ Orders .......................................................................... 79.952.488 Unfilled orders. Dee. 31st ...................................... 54.688.648 Normal production .................................................... 98.480.880 Stocks. Dec. 31st ........................................................ 264. 726.689 Normal stocks .......................................................... 297.771.746 Shipments below production.................................. 4.202.449 Actual product ion below normal ........................ 7.606.666 Orders below normal production .......................... 18.628.397 Stocks below normal ................................................ 48.046.066 E ~ feet feet feet feet feet feet= 6% feet= 8% feet= 190/0 feet=16 % :: :: :: :: :: § :: 1 1EI·1111I1I11I1I11111111111f111111111111.llIlIlllllfllIllIlIlI'lllllllllllIflllllllllllllllllllllllllllllllllllllllll'"'l!J BUILDING The estimated valuation of building permits issued at the twelve reporting centers of this district reached a total in December second only to the high point of the year, which was reached in October. There were 1,951 permits issued in December valued at $9,763,536, an increase of 41 per cent in valuation over the 1,875 permits issued in December, 1924, valued at $6,922,981, and 65.6 per cent above the 2,333 issued in November, having a valuation of $5,896,105. The year 1925 was marked by an unprecedented activity in building, as shown by the fact that the total estimated valuation of building during the year at reporting cities was the greatest ever recorded, and reached a total 17.4 per cent over the high mark registered in 1924. I ~IIII"""IIII"""'IIIIIIIIIIIIIIIII"IIII"IIII'" ", ' .,11111111111111,11'1,"111111111111111111111111111111111 1111 1 1 111' ,1 1 1 1,11111111111111111.11111111111111111'111111 , 1"111111.11.1111,1,.1111111111.11".1.111.1 .... II •••• I.I ••• IIII.II.I.II.III II!) DECEMBER BUILDING PERMITS : ~ : :: ~ Aus Ben : § Da § It [illllllllllll l lllllllllllllllllllllllllll l llllllllllill11.11111111111111111111111.1111111,11'111 1 1.1 111 111111 111111 11111111 11 111 ••• I ,1.11111'111111 1 11111 1 11 ' 11111 11 1 III~ IIII'IIIIIIIIIIII'IIIIIIIIIIIIIIIIIIIIIIIIIII' I ' I' 111 11 111111111 1 11 1 11111111111111118 CEMENT December which represented an increase of 1.5 per cent above November shipments, and was 32.6 per cent greater than December, 1924" shipments. Stocks held at the close of December were 11.7 per cent greater than those on hand on November 30th, and were 33.7 per cent larger than December 31, 1924, stocks. Activities at the mills which produce Portland cement in !exas were sustained during December and showed material Increases for ·the year 1925, as compared with the previous year. The December production of cement was practically the same as during November, but showed an increase of 5.6 per cent over the same month of 1924,. There were 342,000 barrels of cement shipped from the plants during G]1 .... 11I1I1 ....... IIII ..... I.III ....... U .... IIII .. III .. I1I1I1 ...... 11I1I1I1I1I1I1I1I1I1I 1 ... I IIIIIIII .. IIIIIIIIIIIIIII .... III U IIIlIl .. I ... III ...... IIIIIIIIIII .. III1 .... 1I1111111111111 .. 1111111111 .. 111 ...... 11 .... 111 .. 11111.111111 .. 11111 ... 1111 .... : I t:J .............. STOCKS OF POR'I1LAND CEMENT (Bar els) '9 : I IIU ............. II ............ UU ...... II .. II .. UIl.III1I1U .. III ...... IIII .............. 11111 .. 111 1 11111 111111111111111111111,11111111.111.1111111 .. 11111111 .. ,1111111111 .... IIU ........... IIIIIII .......... IIIIIII .. I .. IIIIIIII ... I.III·ro 8 MONTHLY REVIEW OF BVSINESS AND INDUSTRIAL CONDITIONS SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Boord. os of Januory "5. 1925.) Pl"oduction and distribution of commodities was in lal"ger volume in Decembel" than in Novembel", and the volume of l"etail tl"ade was lal"gel" than in any pl"evious month. Wholesale prices declined to the level pl"evailing last spring, which was the low point for the yeal". PRODUCTION The Fedel"al Reserve Board's index of production in basic industries advanced 6 per cent in December to the highest level in ten months. The rise in this index has been nearly continuous since last August, when the volume of production was at the low point for 1925. In December the production of iron and steel and bituminous coal and factory consumption of cotton increased considerably, and the production of lumber, cement, and copper was maintained at relatively high levels. The volume of factory employment and payrolls, after increasing during the late summer and autumn months, continued practically unchanged in November and December with increases in some important industries offsetting seasonal declines in others. Building contracts awarded during December were the largest recorded for that month and exceeded in value those awarded in November, although a seasonal decrease in building activity usually occurs at that time of the year. TRADE Sales at department stores, chain stores, and mail order houses in December indicated the largest volume of Christmas trade on record. Trade at wholesale declined seasonally . but continued larger than last year. Stocks at department stores showed less than the usual decline in December and were 4. per cent larger at the end of 1925 than a year earlier. Freight car loadings continued large during December with shipments of merchandise and miscellaneous commoditiep, coke and coal particularly heavy. PRICES The general level of prices as measured by the wholesale price index of the Bureau of Labor Statistics declined by about 1 per cent in December and was at the end of the year somewhat lower than a year earlier. The average of wholesale prices for the year 1925 as a whole, however, was the highest in five years and the changes in the price level during the year were smaller than in any year in more than a decade. Among agricultural commodities, the prices of livestock and dairy products declined in December, while grain prices advanced. Among non-agricultural commodities the principal declines were in the prices of cotton goods, paper, and rubber, while somewhat higher prices were shown for silk, coal and lumber. In the first three weeks of January quotations on hogs, coke and hardwood lumber advanced, while prices of corn, cattle and rubbel" declined. BANK CREDIT Changes in the demand for currency have been the principal factor influencing the volume of Reserve Bank credit in use since the middle of November. During the first weeks between November 18th and December 23rd the Reserve Banks paid out into domestic circulation a net amount of about $320,000,000 of currency in the form of gold and gold certificates, Federal Reserve notes, and other kinds of money, and during the following four weeks the return flow of currency from circulation amounted to about $4.30,000,000. These currency movements were reflected in corresponding changes in the volume of Reserve Bank discounts for member banks. At member banks in leading cities total loans and investments, which had increased almost continuously during 1925, reached the highest level on record at the end of December, but declined by about $200,~00,000 during the first two weeks of the new year. Both the increase iri bank loans in the latter part of December and the decline after the return of the year were largely in loans on securities particularly at the member banks at New York City. These changes in the demand for loans at member banks were related both to the changes in customers' currency requirements and to end of year disbursements by many industrial and financial institutions. Conditions in the money market, which had become firmer in the last half of December were easier in January. Rates on bankers' acceptances increased following the advance in the buying rate of the New York Federal Reserve Bank effective January 8th, while rates on commercial paper showed little change during the period. -. , 4 105L- / I