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:
MONTIILY BUSINESS REVIEW
OF THE
::
1
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c. c.
WALSH~EDERAL RESERVE BANK O~H~~~~~W.
Chairman and Federal Reserve Agent
:
:
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J.
EVANS,
:_!_------:
Assistant Federal Reserve Agents
(Compiled January 15, 1927)
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Volume 11, No. 12
Dallas, Texas, February I, 1927
This copy releaaed for publicat ion in morning pavers
January 31
DISTRicT SUMMARY
(;,]111111111'''11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111'''''111111111111111111111111111111111111 1 1111111111111111111111111111111111111111111111111111111111111111IIU(!]
E
§
THE SITUATION AT A GLANCE
December
Bank debits to individual o.ccounts (at 16 cities ) ............................................................................................ $825.403,000
~:::~~Bnatnl~~~:n:a{:;;;~;:;;b~;·.. b;;~j;;;··;t··~;:;d··~f··;;;~~th:::::::::::::::::::::::::::::::'. :::::::::::::::::::::~:::::::::::::::::::::::::::
Reserve Bank ratio at end of month ...................................................................................._........ -........ ........
g~~~~~l~r~\\~~~~u\~~i~f~~:·~:~~:~::~~~:~~~:::::::::::::::::::::::::::: ::::::::::::::::::: :::::::::::':::::::::::::::::: :::~::::::::~::::~~
Oil production (barrels) ...........................................................................................................................................,
Lumber o"ders at pine mills (per cent of normal production) ....................................................................
8
~
\
November
$786,995.000
Inc. or Dec.
Inc.
4.9 %
4.772,409
67.9 %
13,967.570
b"e~.
66.0 % Inc.
22.132,276
60 %
20,548.710
Inc.
72 % Dec.
;:::::m
:::::::~~ ~~~:
~~:~~
1.9 points
n:~~
7.7 %
12 points
1111111111111111111111111111111111111111111111111111111111111111111111111111111111111.1111111111111111111111111'1111111111111111111111'1111111111111111111111111111111111111111111111111111111111"1111'11111111,1111111'1IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII!l
Mixed trends in business and industry in the Eleventh
Federal Reserve District were disclosed during the closing
month of 1926. Retail buying in the large cities, as reflected by department store sales, was maintained at a level
three per cent higher than a year earlier and checks charged
to depositors accounts were slightly larger. Wholesale
trade, however, which is an index to country buying, reflected more 'than the usual seasonal decline from November
and was less than a year ago. The small volume of business is due in part to the fact that merchants are adhering
strictly to the policy of buying in small lots and for well
defined needs. While wholesalers and country merchants
are feeling keenly th~ effects of the adjustment in business
to the new situation, a compensating feature is found in the
fact that stocks generally are not unduly burdensome which
places them in a position to take advantage through lower
replacement costs of any increase in consumptive demand.
This condition presents a marked contrast to that which
obtained in 1920.
ReflecLing the unsatisfactory trade conditions and the
slow liquidation of indebtedness, the district's mortality
raLe developed a further marked increase during December.
The number of failures was the largest of any month since
December, 1923, and in only one month during the threeyear period was the volume of indebtedness higher.
According to the United States Department of Agricul.
ture, the volume of the district's agricultural production in
1926 was the largest since 1919 and despite the decline in
Lhe price of cotton, the total value of the district's farm
output exceeded that of the previous year, as the increased
value of grain and feed crops more than offset the decline
in the value of cotton. The situation created by the low
price of cotton has again demonstrated the exigency of more
diversified farming, and indications that such a program is
being planned for 1927 are accumulating. According to
the estimate of the Department of Agriculture, the area
sown to winter grains is substantially larger than in the
previous year and the condition of these grains is generally
good. There is a good season in the ground in practically
every portion of the district.
The physical condition of the district's ranges and live·
stock is exceptionally good. Livestock generally are in
good flesh and there is an abundance of pasturage and
other feed to carry them through the winter. The weather
so far has been favorable to livestock and losses have been
light.
There was a further liquidation of bank borrowings. Fed·
eral Reserve loans to member banks were reduced $9,195,161
during December, reaching a low point on the 31 at $4.,.
772,4.09. While these loans had risen to $6,071,809 on
January 15, they were $1,118,534 less than on that date in
1926. Deposits of member banks reflected a decline during
the month and on December 29 they were $38,145,000 less
than a year ago.
A further seasonal recession in the volume of employ.
ment was noted and a surplus of labor now exists in many
lines of industry. While there were additions to working
forces in some lines, the increase was more than offset by
the reductions elsewhere. The heavy decline in building
during the closing months of 1926 created a considerable
surplus of building tradesmen. The supply of farm labor
now exceeds the demand in most sections of the district.
CROP CONDITIONS
Field work in the Eleventh Federal Reserve District dur- throughout the fall and while in portions of the Coast and
ing December was greatly retarded by rain, sleet, snow, and Rio Gra~de Valley sections of Texas and in a few localities
Cold weather. Plowing operations have progressed slowly elsewhere this work is nearing completion, in most sections
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
of the district it is reported to be backward. The clear,
dry, and generally warm weather during the first half of
January, however, enabled farmers to make fair progress
with farm work. In practically all portions of the district,
there is a good season in the ground which furnishes the
foundation for good planting conditions in the spring.
The condition of winter wheat and oats is generally good
throughout the district, although growth was somewhat slow
during December due to the cold weather. The acreage
sown to these crops in the fall of 1926 was substantially
larger than in 1925. The Department of Agriculture esti·
mated that the area sown to winter wheat in Texas was
2,322,000 acres as compared to 1,858,000 in 1925 or an
increase of 25 per cent.
Truck crops in the Rio Grande are reported to be in
good condition, and heavy shipments of citrus fruits and
vegetables were made during the past thirty days. The
frost which extended to the coast on the 30th of December
did some damage to tomatoes, beans and tender truck but
did not materially affect the hardier truck.
Cotton picking has progressed slowly and there is yet
much unpicked cotton in West and Northwest Texas. Prior
to January 16 there had been ginned in Texas 5,170,714
bales as compared to 4,,858,287 bales prior to December 13
and an estimated yield of 5,900,000 bales.
THE YEAR'S CROP RESULTS
According to estimates given out by the United States
Department of Agriculture, the yields of the principal crops
in Texas for the years 1925 and 1926 were as follows:
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COMPARATIVE PRODUCTION AND VALUE OF TEXAS FARM PRODUCTS COMPILED BY THE U. S. DEPARTMENT OF AGRICULTURE
QuantityCOMMODITY1926
1925
Inc. or Dec.
Barley....................... ............................................
7,700,000 bu.
885,000 bu,
+ 6,865,000 bu.
Corn ......................... .................................... .. ....... 106,868,000 bu.
25.134,000 bu.
+81,729,000 bu.
Cotto n. ......... .............. .. .........................................
5,900,000 bales
4.166,000 bales
+ 1,736,000 bales
Hny (tame and wild)................... ...................
1,617,000 ton.
844,000 tons
+
673,000 tons
KaCirs.................................................. .............. ... 48,276,000 bu.
30,876,000 bu.
+17,401,000 bu.
Oats. .......... ............................................ ............... 88,666,000 bu.
13,419,000 bu,
+70,247,000 bu.
Peanuts....... ................. .................... .. ................... 49,346,OOOlbs.
82,826,OOOlbs.
+16,520,OOOlbs.
Irish potatoes.................................................... 2,100.000 bu.
1.378.000 bu.
+
722.000 bu.
Sweet potatoes....................................................
8.566.000 bu.
6.132,000 bu.
+ 2.424.000 bu.
Rice............................................................ ............
6.142.000 bu.
6.216.000 bu.
74.000 bu.
Wheat.................................... ................... ......... 32.796,000 bu.
6.652.000 bu.
+26.244,000 bu.
Totnl value eleven crops.... .................................... .........................................................................
- -Value-1926
1925
4,081,000
$
752,000
64,118,000
27,647,000
306,418,000
868,095,000
17,660,000
16,649,000
26,662,000
28,466,000
31,798,000
8,454,000
2,220,000
1,116,000
8.886.000
8.307.000
8.128.000
8.707.000
6.756.000
9.262.000
39,355.000
10.156.000
$500.fl61,OOO
$476.610.000
$
Inc. or Dec.
8,329,000
86,471,000
- 62,682,000
2,001,000
+ 8,087,000
23,889,000
1,104,000
578.000
679.000
2.606,000
29,199.000
+$83.841.000
+$
+
+
+
+
+
+
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B
LIVESTOCK
The livestock situation in the Eleventh Federal Reserve prices again reflected a downward trend. Despite the
District at the opening of the new year was generally favor- meager receipts sheep and lamb prices declined to lower
able, with livestock in good condition and with ample pas- levels.
turage and other feed. Ranges in Texas and Southeastern
COMPARATIVE TOP LIVESTOCK Pli.lCES
§
Arizona showed a slight improvement during December §
while the condition in New Mexico showed practically no
Dec.
Dec.
Nov.
1926
1926
1926
change. Except in a few localities where dry weather has
Beef .teers .................................. ........................ $ 7.60
$ 9.00
$ 8.75
prevailed, cattle generally are in good flesh. Even in those
Stocke,' steel'S ............................. ....................... 7.76
8.00
7.65
Buteher cows .......................... ......... .. ................. 6.00
6.00
6.00
localities where feeding is necessary there is an abundance
Stocker cows .............................................. ........ 5.00
4.00
5.00
of cheap feed. Cattle throughout the district are in a better
Calves ............ .. .................. .. .. ........................... ..... 9.00
8.60
9.76
Hogs ........................................................ .............. 12.25
12.60
13,50
condition than a year ago . . The winter so far has been favor·
Sheep ....... .. ........... ................................................ 7.50
8.60
8.00
Lambs .......................................................... ........ 12.00
16.60
13.2.
able for cattle, and losses have been light. Reports indicate
that there is a strong local demand for stocker cattle in somc
The movement of cotton through the ports
sections of Texas. The condition of sheep in Texas showeu Cotton
of Houston and Galveston showed ·a seaa marked improvement having risen from 91 per cent of Movement$
sonal decline as compared to November but
normal on December 1 to 97 per cent on January 1. Re·
ports state that prospects point toward a large lamb crop. both receipts and exports during December greatly ex,
ceeded those for the corresponding month the previous year.
Movements
The receipts of livestock at the Fort Worth The foreign exports of cotton from all United States ports
and Prices
market reflected a considerable decline duro during December established a new high record and greatly
ing December. The supply of cattle, calves exceeded those for the corresponding month in 1925.
and sheep was materially less than in either November or
in December of the' previous year. The receipts of hogs,
however, were larger than in the previous month or the
same month of 1925.
Th cattle market was somewhat wcak at the beginning
Net receipts ...................... 537.963
489.125
2.493.947
2.266.892
(If the month, but due to the dwindling supplies and the
Exports .............................. 680.826
427.864
1.914.819
1.668.260
Stocks.
December
31........
729,054
758.442
<;tronger demand, pri ces strengthened during the last three
~
LIIIIIII
weeks of December alld the first half of January. Hog
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§
I.
:
~
8
VORT WORTH LIVESTOCK RECEIPTS
7~~~7 10~~~·~ LL~:.~~: 8~::~ ~~i.~:9
Cattle ....................
Calves .................... 25.468
Hogs .................. .... 22.344
Sbecp .................... 9.463
34,330
16.486
28.720
L 8.862
G 6.858
L 19.257
39,894
19.789
17.691
L 14.426
G 2.666
L 8.128
I!]
§
COTTON MOVEMENTS
:
Net l'(!ceipts ...................... 528.358
Exports ................................ 810.467
Stocks. December 81........
I.
:
§
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365.061
245.642
2.681,486
1.899.486
1.028.806
I.§
2.169.576
1,169.444;
776.011:
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3
MONTHLY BUSINESS REVIEW
m"~~~,,.:~:~~m::: : : m: : .: : m: : : :~m: : : : : : ::"~~;~1~~~~~~i~~;~:"·"""":.;:~:""~~~;~,::~;:m8:::_1-1
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Cotton on ha nd December 81
(a) in consuming es tnblishments ................ _..............
(b) in public storage and cco'mpresscs ................ __
1.227.682
6.192.532
1.105.600
6.866.470
1.776.892
6.478.998
1.720.696
6.584.016
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GALVESTON SroCK STATEMENT
:
m
;:
:
D~2~1. DeM~' :~_
1:::::
::::_
ID..
For Great Britain .................................................... 33.000
For France ................................................................ 17.800
For other foreign ports _. _ ..... ....... ........ ..... ... 84.000
For coastwise ports.............. ................................... 9.000
In compressCII and depots ........................................685. 764
80.700
21.800
69.100'
6.500
640.842
Total ....................................... ..................... ........ 729.054
768.442
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IIII~II ...... IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII... IIII .. 1I ...... IIIIIIIIIIIIIIIIIIII ....
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SEASON'S RECEIPTS. EXPORTS. AND STOCKS AT ALL
~
UNITED STATES
::
POR:~g. 1 to Dec. 81
This Season
Receipts .......•................................... .............8.485.946
§
Last Season
7.710.148
§_ . Exports : France
Great Britain
............................ 1.874.774
........................................
610.767
Continent .................................... 2.580.897
Japan. Chino .............................. 794.040
_- - -:
Mexico ....... _...............................
5.279
Total foreig n 1l0I'ts ... .....•.•.•...........•...•• 5.365. 247
§
Stocks at all U. S. ports Dee. 81._.3.056.464
8
1.874.219
560.616
2.051.120
689.448
19.98G
4.683.882
1.608.204
_--:-_-----:§
:
~
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New York ............................................ ..........
New Orleans ................................................
Dullas ..............................................................
Houston ..........................:......... ......................
Galveston ......... _........... ................................
§
J a n . 1.5.
19!71a .55 ~
18.80
12.'16 ~:_:_
18.20
13.26
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COTTONSEED PRODUCTS
The volume of cottonseed products shippe~ from reporting cottonseed oil mills of this district continued heavy during December. The market was practically steady, however, only slight variances being noted in the average price
received for the different classes of products. Crude oil sold
at an average price of $.0696 per pound in December as
compared to $.0734 per pound in November, while the
average price received for cake and meal in December was
$23.51 per ton, as compared to $23.42 per ton in the previous month. Hulls sold at an average price of $3.86 per
~ ••• ',II ••••••••••• ,I •••••• I ••• , ••• "
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STATISTICS ON COTTONSEED AND COTTONSEED
PRODUCTS
Texas
United States
AUg:s~1~ Dece:ria~!: AUg:£i~~o Dec:~;?~81
Cottonseed received
at mills (lons ) ......
Cottonseed crushed
(t.ons) ......................
Cottonseed on hand
1.476.000
1.188.000
4.659.000
4.412.000
1.049.000
815.000
3.890.000
8.026.000
(tollS) ..... .................
488.000
889.000
1.292.000
1.416.000
Crude oil produced
(pounds) ............... .294 .938.000 228.393.000 1.111.664.000 867.219.000
Cuke and Meal pro·
duced (tons) ..........
486.000
384.000
1.519.000
1.400.000
Hulls produced (tons)
805.000
281.000
972.000
829.000
Linters produced
(oOO-lb. bales)
171.000
163.000
055. 000
664.000
Stocks on hand
Dec. 81:
Crude oil (pounds .... 88 .898.000 18.706.000 106.216.000 64.699 .000
38.000
53.000
167.00()
259.000
Coke and meal (tons)
Hulls (tons) _.. ........
100.000
78.000
262.000
202.000
Linters (500-lb. bales)
67.000
44.000
220.000
157.000
tEl ".........
COT'I'ONSEED PRODUCTS SHIPPED AND AVERAGE PRICE
1_
-
E_
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o,,~~'~:.~Eb~~~i:~:~· ,:'
Cake nnd menl....................................
Hullo ......................................................
Linters ..................................................
49.083 tons
86 .268 tons
7. 377.728 Ibs.
28.61 p er ton
3.86 per ton
.0222 l'er lb.
§
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:1
Dec. 1926
High
Low
13.10
12.1 5
12.75
11.6B
12. 00
10.8 0
12.75
11.70
12.86
11.80
::
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SP01~?~rr:~~a~i~JCES
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;:
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1_-
ton as against $3.85 per ton in November and linters for
$.0222 per pound in December as compared to an average
price of $.0248 per pound in the previous month. These
mills purchased 97,802 tons of cottonseed in December for
which an average price of $21.08 per ton was paid as com·
pared to 171,024. tOllS purchased in November at an aver·
age of $21.4,1 per ton.
TEXTILE MILLING
Following the increased activity of cotton mills in this
district during November, there was a decline during December. There were 1,962 bales of cotton consumed during the past month as compared to 2,350 bales in the previous month and 2,058 bales in the corresponding month last
year. Production for the month which amounted to 925,·
209 pounds reflected a decline of 13.6 per cent from November and 4.. 3 per cent from December, 1925. Orders 011 hand
at the end of December were considerably below those on
hand a month earlier but were slightly greatcr than a year
ago.
1:_" ..............................
~;~;;~;.~.;~~;;;~.;;~;;~;;~;
Number buies consumed. ....................... 1.962
Nwnber s pind:es active ........................ 52.280
E Numbe,' pounds cloth produced ..........925.209
8
2.058
63.1 80
967.028
"'ii;;"'l:_
..........
52.280
1.071.~18
§
11111111111111111111 1 111 1 111111111 •• 11.111111.111111111111111111111111111111.111111111.1.111.111111.111111111111.1111118
WHOLESALE TRADE
A recession in the distribution of merchandise at wholesale which was more than seasonal was disclosed during the
[!I
closing month of 1926. Sales in all reporting lines of trade
::
::
were smaller than in December of the previous year and in
E all lines except farm implements, they were less than in
the previous month. The year-end decline represents th e
cumulative effects of adjustment in business to the new
condition created by the decline in the price of the dis:
:
trict's principal commodity. This adjustment was brought
about through the interworkings of the following forces :
. (1) the restriction of the consumptive demand from the
farm population, pending a clearer perspeclive of the future, (2) the desire of the retailer to close the year with an
inventory as small as possible, and (3) the pol icy of retailers in buying in small lots and to cover only well·
defined needs. The moderate stocks which are now bein g
carried by the retailers generally fortify them against un·
clue inventory depreciation and enables them to reap the
benefits of quick turnover. The most unfavorable factor
§
in the situation is the slow liquidation of accounts which
=:1_
11. ""11 II 111111 ............. 111111 .. 11111111.11.11 .".II.U.IIIIII1 •• II.,1111 III H'IIII'.I" """" 1111. ro
MONTHLY BUSINESS REVIEW
4
means that the trade must finance a large volume of carry·
over indebtedness.
It will be noted that the stocks carried by the wholesalers
on December 31 were considerably lower than at the close
of November or at the end of December, 1925.
per cent less than in December last year. The disappoint·
ment over t~e returns from the cotton crop and the slow
progress with field work are the major factors which have
served to reduce the demand for farm implements. Prices
remained generally firm.
Quietitude prevailed in the wholesale dry goods trade
during December. Sales during the month reflected a de·
cline of 4.6.2 per cent as compared to the previous month
and 1.4 per cent from the corresponding month last year.
Buying in small lots and for immediate delivery continues
as the ruling policy of the trade. Collections were gene·
rally slow during December.
The dema nd for drugs at wholesale during December
showed a further decline. Sales of reporting firms were
8.2 per cenl less than in November and were 2.6 per cent
below those for December, 1925. Sales during the six
month·period ending December 31 were 4,.7 per cent greater
than during the same period of the previous year. Dealers
report that buying is being limited largely to immediate
needs and represents chiefly staple goods. Prices showed
no important changes. Collections are still below normal
but are considered to be generally fail' under present cir·
Cllmstan-::es.
The wholesale farm implement business continued ex·
tremely dull during December. In fact the volume of busi·
ness during the final quarter was smaller than in any simi·
lar period since 1921. While sales during December were
15.6 per cent greater than in November, they were 63.4,
The demand for hardware at wholesale showed a de·
cline during December. Sales were 11.4, per cent less than
in November, and were 5.6 per cent less than in the cor·
responding month last year. Distribution during the last
half of 1926 averaged 1.8 per cent larger than in the same
period of 1925. The demand is reported to be holding up
well in some sections but it is poor in others.
The December sales of wholesale grocery firms reflected
a further decline of 10.2 per cent as compared to the previ.
ous month and were 7.2 per cent below December a year
ago. While the decline appeared to be general throughout
the district, some dealers report that the oUllook for the
new year is fair.
(!J III I IIIII I II ••• I. I • • • • I •••• II ••• 'II I I •• I ' . 'II. I • • •• I. 11 111111 1 1111111 11 1 . 1 111 11111 11 11 . 1"11 11 11 1111 11 11111I I IIIIII II I I I!)
::
CONDITION OF WHOLESALE TRADE DURING DEC., 1926
::
- Net Sales- - Net Sules-StockaDec. 1926
Ju ly 1 to Date
Dec. 1926
compal'ed with compared with compared with
Dec. Nov.
snme period
Dec. Nov.
1926
1926
last year.
1926
1926
Gl'ocel'ies ......._...............- 7.2
- 10.2
- 1.8
- 1.7
- 11.1
Dry Goods ....................- 1.4
-46.2
- 10.3
-20.2
- 16.6
Fal'm implemen ts ......- 6S.4
+16.6
- 18.6
- 8.6
+
.3
Drugs .............................. - 2.6
- 8.2
+ 4.7 - 1.~ - 9.9
Hnrdwnre ...................- 6.6
- 11.4
+ 2.7
'- 16.0
.6
G
III I .II I IIIIIIIIIIII IIIII II I IIII I I I IIIIIIII I I I II.II II II I 1I II II II IIIIIII II I III I I I III I I I III IIII III I II IIII II IIIIIIIIII I I I l GJ
RETAIL TRADE
A large seasonal increase in the volume of retail buying
was evidenced by department store sales during Decemher.
The month's business was 4,7.8 per cent larger than in No·
vember and 3.4. per cent larger than in December of the
previous year. The total volume of business for the year
1926 averaged 4..1 per cent more than in 1925.
Stocks on hand at the close of December reflected a
decline of 20.4 per cent from lhose at the close of the previ.
ous month and were 11.9 per cent less than a year ago .
The percentage of sales to average stocks for the year 1926
was 281.5 as compared to 257.4 in 1925. The more rapid
turnover of stocks was due both to increased sales and the
smaller average stocks carried.
The ratio of outstanding orders at the end of December
to last year's purchases was 4 .3 as compared to 5.0 at the
end of November and 5.6 at the close of December, 1925.
The ratio of December collections to accounts receivable
on December 1 was 39.4 as compared to 36.9 in November.
l!J 11 111 1111111111111111111111111 11 11111 11 111 111 1 11111111111111111111111 111111 11111111111 111 11 1 111 11111 1111 11 1111 11 11 1111111 " 111 11 11 111 I 11 11 11111111111 111111 1111111111 111 111 11 11 11 111 11 111111 11 111111 11 11 11111 1111111111 11 11 1111 11 11 11 111 11 1111 11111111 1111'8
Totnl Sales:
December, 1926. compared with Decembe,', 1925........................................
December, 1926, eompnred with November, 1926........................................
Jan. 1 to date, compnred with eame period last yen........................................
Cl'edit Sales:
December, 1926, compllred with December, 1925.. ............. _.......................
December, 1926, compared with November, 1926........................................
Jan. 1 to date compnl'ed with same period las t year......................................
Slocks '
December, 1926, compared with December, 1925 ....................................... .
December, 1926, compared with Novembel', 1926 ...................................... ..
P e"centnge of sa les to aver age stocks in:
December, 1926 ........................................... ..................................................... ..
December. 1926 .. ............................................................................................... ..
Percentage of saleD to Ilvernge stocks
Janunry 1 to December 31, 1926 .................................................................. ..
Janual'Y 1 to December 31, 1926 ................................................................... .
I\'atio of outstanding ol'ders to last yenr's purchases ......................................
Ratio of December collections to accounts "eceivable due nnd outstand·
ing Decembel' I, 1926........................................................................................
Da ll a.s
- 4,4
+60.3
+ 1.2
Fort Worth
+13.2
+65.3
+13.1
Houston
+ 11.3
+49.0
+ 6,4
All
Other
+ 2.7
+40.5
+ 1.0
'fotnl
District
+ 3,4
+47.8
+ 4.1
- 5.7
+ 42.6
+.7
+ 14 .6
+61.2
+ 18.'7
+13.1
+36.3
+ 6.1
+ 1.8
+36.9
+ 4.7
+ 1.8
+40.7
+ 4.5
-16.1
-17 .4
- 14.6
-26.0
- 6.1
-18.2
- 8.1
-21.7
- 11.9
- 20.4
85.1i
40.2
8G.3
46,4
48.7
60.9
39,4
85.1
8G.6
42.3
247.4
271.0
4.8
266.0
276.1
2.1
278.9
307.4
6.1
265.7
284.0
3.7
267,4
281.6
4.3
37.8
38,4
41.4
42.1
39,4
[!J'I I I IIII III II I I II I I I IIII I I I IIII I I I IIIIII III IIIIIIII I I1I I I I111 11 11 1111 1 11 111 11111 11111111 1111 111111 1 111 11111 1 I I II I III I IIlI.IIIII I IIII IIII I I I IIIII IIIIII I I I I' 1111 111 1111 1 111 1 1 11 11111 1 1.1 111111 1 11 11 111 11111 1111111 11 1 1111111 1 111 1 111 1 11 11111111111111 1 11111 8
FINANCIAL
The value of checks charged to depositors accounts at
banks in sixteen principal cities of the Eleventh District
reflected a seasonal increase of 4,.9 per cent in December,
as compared to' the previous month and an increase of 0.6
per cent as compared to the same month a year earlier.
Debits for the year 1926 were 3.4, per cent larger than
those for 1925.
Acceptance
A further increase was registered during
Market
December in the volume of acceptances
executed by 'accepting banks of this district
and which were outstanding at the end of the month. The
total volume of these acceptances outstanding on December
5
MONTHLY BUSINESS REVIEW
the domestic shipment and storage of goods rose from $1,~
884,,050.24 on the former date to $4,,828,133,33 on the
I a tter dd teo
DEBITS TO INDIVIDUAL ACCOUNTS
(In Thousands of Dollars)
Dec.
1926
Austin .................... $ 22,276
Beaumont .............. 24,699
Cors ic"n.. ..............
8,965
Dallas .................... 231,386
EI Paso ....... _..... 34,606
I"OI·t Worth .......... 97,287
Galveston ........ ...... 58,205
Houston .................. 176,226
POI·t Arthur .. ........
9,970
Ros\vell ..................
3,758
Sa n Antonio .......... 43,987
Shreveport ............ 42,134
Teo<nrkana ............ 10,302
Tucson ....................
9.690
Waco ...................... 18,255
WichIta Falls ...... 83,908
Total, 11th
District .......... 826,403
~
Dec.
1925
$ 19,252
19,408
9,370
255,396
40,379
90,102
63,479
160,947
9,728
4.181
40,143
42,908
10,136
11.356
20,034
83,258
820,077
Inc. 01'
Dec.
+15.7
+26.7
- 4.3
- 9.4
- 14.5
8.0
8.8
9.5
2.5
- 10.1
9.8
- 1.8
+ 1.6
- 14.7
- 8.9
2.0
+
+
+
+
+
+
+
.6
Nov.
1926
$ 22,814
22.471
6,629
226,271
83,409
93,075
64 ,126
162,078
9,844
8,904
42,788
39,272
8,896
9,897
19,076
82,957
Inc. or
Dec.
- 2,4
9.6
+86.2
2.2
8.S
4.6
7.5
8.7
6.7
- 3.7
2.8
7.8
+16.8
- 2.1
- 4.S
2.9
786,996
+ 4.9
During the closing month of the year, there
was a marked decline in the loans and in·
vestments of member banks in selected
CItIes. Investments in United States securi·
ties declined $2,827,000 and investments in
other stocks and bonds declined $1,030,000. Loans for
commercial purposes declined $2,715,000 and loans on
government securities declined $1,805,000 but loans on cor·
porate securities reflected a slight increase of $357,000.
The net decrease in the loans and investments of these banks
amounted to $8,020,000. Their net demand deposits on
January 5, 1927 remained at practically the same level as a
month earlier but time deposits rose $1,671,000 due princi.
pally to the crediting of the semi·annual interest. Bills
payable and rediscounts with the Federal Reserve Bank de·
clined from $11,211,000 on December 1, 1926 to $3,9.52,000
on January 5, 1927.
Condition of
Member Banks
in Selected
Cities
+
+
+
+
+
+
+
+
+
+
[EJ 111111111111111111111111111111111111111111111111111111111 1111111(1111 1111 11111111 1111111111"'11 111111111111111111111110
31 amounted to $5,763,025.01, as compared to $5,395,091.04
on November 30. Acceptances executed against import and
export transactions declined from $3,511,04,O.80 on Novem·
ber 30 to $934,,891.68 on December 31 but those based on
CONDITION STATISTICS OF MEMBER BANKS IN SELEC'I1ED CITIES
1.
2.
8.
4.
6.
6.
7.
8.
9.
10.
11.
•
::
::
m
Number of reporting banks............................................................................................................
U. S. securities owned ......................................................... ~ ...........................................................
All other stocks, bonds nnd securities owned............................................................................
Loans secured by U. S. Government obligations....................................................................
Loans secured by stocks and bonds other thnn U. S. Government obligations................
All other lonns...................................................................................................................................
Net demnnd deposits ......................................................... _..............................................................
Time dep09its.......................................................................................................................................
Reserve with Federal' Reserve Bank..............................................................................................
Bills payable and rediscounts with Federal Reserve Bank....................................................
Ratio of loans· to net demand deposits........................................................................................
·Loans include only items 4 and 6.
Jan. 6, 1927'
46
48,660,000
24,224,000
2,878,000
72,141,000
238,946,000
271,858,000
101,486,000
29,946,000
8,952,000
89 %
Dec. 1, 1926
47
$ 61,387,000
26,264,000
4,183,000
71,784,000
241,661 ,000
271,870,000
99,816,000
30,282,000
11,211,000
91 %
Jan. 6, 1926
48
$ 48,934,000
23,104,000
3,606,000
78,988,000
238,603,000
278,868,000
95,945,000
28 ,848,000
6.981,000
87 %
1111111111111111111111111111111111111111111111111111111111111111111111 1111111111111111111111111111111 II IIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIII' IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIU"11111111111111111111111111111111111111111111111110
Savings deposits of 90 banks in this district
which operate a s a v in g s department
amounted to $111,198,045 on December 31,
represenLing an increase of 8.4, per cent over December 31,
Savings
Deposits
/
·1
I
I
1925, and 0.1 per cent over November 30, 1926. There
were 233,706 savings accounts at these banks on December
31 as compared to 207,188 a year ago and 232,364, at the
close of the previous month.
8111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111118
I
December 81, 1926
Number of Number of
Amount of
Reporting Savings
Savings
Banks
Depositors
Deposits
Beaumont ................................ ...
8·
2,608
$ 1,081,608
Dallns .............................. ._........
6
40,559
18,107,261
EI Paso ...... .....:.........................
2
8,878
8,468,268
Fort Worth ...............................
2
10,555
8,676,822
Galveston ........ ...........................
3
18,117
8,344,720
Houston ..............._........ ............
11"
60,721
24,927,116
San Antonio .............................
S·
22,790
18,068,548
Shreveport .......... .......... ...........
4"
23,407
11,714,610
Waco ...........................................
6
8,252
6,073,749
Wichita Falls ............................
2
5.324
2,610,108
All others .. .................................
46"
38,416
19,301,741
),
t
:
:::
l
§
:
:
December 81, 1925
Numbcl' of Amount of
Savings
Savings
Deposito!'s
Deposits
2,072
$
922,602
86,103
16,310,297
8,387
8,210,187
10,101
3,182,446
12,g87
8,019,406
46,426
23,054,822
19,726
11,842,880
20,789
11,291,774
7,948
4,874,164
6,185
2,022,526
88,670
18,928,200
Inc. or
Dec.
+ 11.8
+18.3
+ 7.6
+17.3
+ 4.1
8.1
+10.3
+ 8.7
-I- 4.1
+ 24.1
+ 2.0
+
November 80, 1926
Number of Amount of
Savings
Savinge
Depositors
Deposits
2.{i22
$ 1,052.840
40.218
18,080,474
8,746
8,811,982
10,996
4,668,623
13,168
8,575,540
50,792
24,637,552
22,547
12,861,762
22,688
11,412,948
8,180
5,042,802
5,318
2,698,079
38,860
18,868,205
Inc. or
Dec,
- 2.0
+.4
+ 4.8
-19.4
- 2.7
+ 1.2
+ 1.6
+ 2.6
+.6
- 7.0
+ 2.8
+
TotaL........................ ..........
90
233,706
$111,198,045
207,1 88
$1 02,604 ,242
8.4
232,364
$111 ,049,80 2
+.1
" Only 2 banks in Beaumont, 10 banks in Hous ton, 6 bnnks in San .A:ntonio, 8 banks in Shreveport and 48 banks in "nil others " reported the
number of savings depositors.
=
=::=
~
=
=
(
[!J'II.IIIIIIIIIIIIIIIIIIIII.IIII.III ••• II ••• II.IIIII.,11111111111111111"".,,1111111111111111 ' 11111 1 ,11,1111111.111 1111 1111 11 11111,1111111111111111.,111111111111111111111,.11111 11 ,.,11111111111111111111111,11111111111111.IIIIIII.IIIIIIIIIIII.IIIII.IIIIl!;
I
rn
§
I 1111 1111 II 1111 1111111111111111111111111111111111111 111111111111111111111111 11111111 11111111 II 11111 1 111111111111111111111111111 11 11111111111111111111111111111111111111111111111111111111111111111 11111111111111111111111111111111111111111111111111111111
§
Rate charged customers on prime commercial paper such
as is now eligible for rediscount under the Federal
Reserve Act ........................... _ ................................................
Rate charged on' loans tcJ other banks, secured by bills
receivable ....................... _.............................................................
Rate on loans secured by prime stock exchange or other
current collnternl (not includinp: loans placed in other
markets through correspondent banks) :
(a) demand ..............................................................................
(b) time ........................... - ...................... ~ ...................... - .... .
Rate cln commodity paper secured by warehouse receipts,
etc. . ............................................................... _ ............................. Rate on cattie 108ns ....... _....... _................................ _............... _..
Fort Worth
EI Paso
Dallas
Houston
San Antonio
4%·6
7·8
5·7
5
6
5·6
6·8
6-8
5.8
5-6
6.6
8
8
7.8
~_R
6·F
6.8
6·7
6·8
7·8
6-8
4·8
5·6
6-G
I
§
I!]
Waco
6·8
6·7
5·8
5·6
a·s
6-7
6·7
6-8
8
(EJJ IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlIIIIIIIIIIIIIIIIIIIIIII""11I11l1l1l 11I11I1I1I11I11I11l11I1I1l1I1 ~ Ullllllllllllllllllltllllllllllllllllllllllllllllllllllllllllll 1111111111111111111111111111111111111111111111111111111111111110
MONTHLY BUSINESS REVIEW
6
Deposits of
The net demand deposits of member banks
Member Banles on December 29 were $3,313,000 less than
on November 24 and time deposits were
$4.,210,000 less, r epresenting a decline in the combined de·
posits of $7,523,000. The total on December 29 was $38,·
145,000 less than on the same date in 1925.
DEPOSITS OF MEMBER BANKS
iBanks in cities Banks in cities
Total Total Iwith a I>Opuia' with a popuiah.
tion of less tion of over
I
,.,emand Time than 16,000
16,000
,Demand Time Demand Time
1.
~-I-Dec. 23, 1926 ................ 668,749 163,290 .816,648 44,446 862,106 ll8,844
Jan. 27. 1926......... _._ 659,813 167,380 '808,899 44,722 350,914 122.608
Feb. 24 , 1926 ............ __ 654,008 171,024:303.350 45,557 a50,65a 125,467
March 24, 1926..___ 637.392 169.159 !287.084 45,178 350,308 128,981
April 28, 1926............. 605,845 165.668 1272.389 44,688 888,1.56 121,035
Mny 26, 1926 ... _.._._ 598,483 165.099 266,613 45,085 332,870 120,014
June 23, 1926............ _ 588,075 166,827 259,6.10 44,987 328.445 121,890
July 28, 1926 __.___ 589,748 165,299 252,499 45,628 327,249 119,671
Aug. 22,
25,1926
1926
.._._ 584,463
45,407 326,577 119,870
Sept.
................
612,834 165,277
165,782 257,886
~75 ,7 8 0 45,640 387,054 120,092
Oct. 27, 1926 ................ 626,554 164,972 281.080 42,998 345,474 121,974
Nov. 24, 1926 .............. 686,704 165,718 287.413 44,194 848,291 121,519 Dec. 29, 1926 ....... _....... 632,891 161.508 281.721 41,290 85(),670 12(),2lS::
I
G]UIIIIIIIIIIIIIIIIIUIIIIIII 11111111111 IIU 11111 1111 II IU I III 1111 II II 1CIIIIIIIIIIIIIIIIIUllllllliltlil I 11111111 III u l l m
Operations of The year·end decline in the demand for
the Federal R e· Federal Rescrve Bank credit was reflected
serve Banle
in the reduction of loans to member banks
from $13,967,570 on November 30 to $4,·
772,4.09 on December 31. These loans on December 3l,
1925, amounted to $4,006,902. The decline during Decem·
ber 1926 amounted to $9,195,161 as compared to a decline
of $6,845,84.9 in December 1925. There were 88 banks
borrowing from the Federal Reserve Bank on December
31, 1926, as compared to 134. on November 30, and 42 on
December 31, 1925. Following the opening of the new
year, there was an increase in our loans and on the 15th
of the month they stood at $6,077,809.
Due to the large reduction in loans to member banks, the
total volume of bills held declined from $28,005,238.62 on
November 30 to $20,698,917.73 on December 31, distributed
as follows:
Member bllllk collnteral notes sccured by U. S. Government
oblia-ations ........................................................................................ $ 1,488,060.00
Rediscounts and all other ionn.. to member banks........................ 3,284,368.61
Open market purchases (Banke)'.' Acceptances) .......................... 16,926,509.12
Total bil!.. heid .................................................................................. 20,698,917.73
FAILURES
Insolvencies in the Eleventh District during December
were more numerous than in the preceding months of 1926
d h d f 1 d . d b d
h'
h
.
an t e e au te In e te ness was eav1er t an In any
other lTIonth of the year. There were 114 failures reported
with liabilities totaling $1,815,600, as compared to 95 defaults in November owing $1,54,3,071 and 4.9 insolvencies
in December 1925, with an indebtedness of $608,088. During the year 1926 there were 884. failures with liabilities
aggregating $12,113,434 as compared to 695 defaults in
1925 with a total indebtedness of $10,947,609.
PETROLEUM
For the third consecutive month, production of crude oil barrels in November representing an increase of 11,970
in the Eleventh Federal Reserve District during December barrels in total production but due to the longer month a
exceeded all previous monthly records. There were 22,. decline was registered in daily average yield.
132,276 barrels of oil produced during the month, as com·
During the early months of the year production of crude
pared to 20,548,710 barrels in November, representing an
oil in this district reflected a steady decline reaching a low
increase of 1,583,566 barrels in total production, or an in·
level at 11,723,490 barrels in April. Since that month
crease of 28,987 barrels in daily average production. Drill·
however, production has been increasing from month to
ing operations continued at practi cally the same rate as in
month, ascending to a peak in December. The total yield
ovember, however, a substantial increase was noted in
for the year amounted to 184.,861,4.63 barrels as compared
initial production. There were 885 completions in Decem·
to 171,544,864 barrels in 1925, representing an increase of
bel' of which 590 were producers of oil yielding 193,659
13,316,579 barrels in total production. The rapid develop·
'barrels of ncw production and 4.0 were gas wells. This
ment of the Panhandle section of North Texas which is the
compares to 867 completions in November of which 566
extensive area in this district and the prolific deep
most
were successful netting 174,,604 barrels of initial production
sand
extension
in Spindletop field were largely responsible
and 4.1 were gas well s.
for the year's increase. Drilling operations during the year,
Daily average producti on of oil in the Texas fields rose also, were on a broad scale, the number of completed wells
from 627,634 barrels in November to 658,084. barrels in totaling 9,4.66 of which 5,967 were producers, as compared
December. Increased activity and new production in to 7,115 completions in 1925 of which 4',584. were successful.
ShackleL)l'd, Crane, and Upton counties of Central· West
Texas were la rgely responsib le for the bulk of this increase.
CRUDE OIL PRICES
Jan 1:.;
A decline in field operations wns noted in the North Texas
ig
area due in part to cold weather and for the first time since
'l'exna Coastal (Grade ..A.. ).............................................. $1.40
$1.5()
February this area reflected a decline in daily average
Nol'th and Central Texna and North Louisiana
(52 gr. nnd above) ........................................................ 2.7()
• §
yield. Production of oil in North Loui siana amounted Lo :: · Prices
for January 12, 1926, not available on a comparable basi.. E
1,731,660 barrels in December, as comp ared to 1,719,690
m . I I I I I I .. IIIIIIIIIIIIIIIII ......... IIIIIIII.III .. UIlIlIlIlIlIlIlIl .. IIIII ...... II ........ IIIIIIIIIIIIIIII.UUIIIIUIli!l
Jal~'2~2,
::_i_
ro LIIIIIIIIIIU'IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIII U.IIIIIUII .. IIIIIIII.UII1IIIIIIIIIU ........... UU .. IIII.[!j
North Texas ................................................................ _
Central· West Texas ...................... ............................ .
East·Central Texas.................................................... .
Texas CoastaL ........................................................... ..
Southwest Texus ..........................................................
Totnl, Texas ..................................................... ..
Nor th Louisialla ........................................................ ..
Total, DistricL ................................................ _...
8
OIL PRODUCTION
November
Decembe,'
Total
Daily Avg.
Total
Daily Avg.
8.004.190
266,806
8.126,644
262,150
3,001.180
100,039
4,OO:;,6J 0
120,213
1.70,\,070
64,970
1,697,220
56,5H
4,848,490
161,617
5.292,9,10
170,710
1,277,940
42,598
1.2il,362
41.0ll
20,400,616
18,829,020
627,684
658,084
65,8(iO
67,323
1,731.660
1,719,690
684,9[j7
22,132,276
713,944
20,548,710
Inc.
Inc
Inc
Inc.
Dec.
Inc.
Inc.
Inc.
Increase or
Total
122,464
1,004,430
6,850
444,460
0·588
1,571,596
11,970
1,688,566
Decrease
Da.ily AVII'.
Dec.
4,656
Inc.
29,1701
Dec.
1,604
Inc.
9,128
Dee.
1,587
Inc.
30.450
1,468
Dec.
Inc.
28,987
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7
MONTHLY BUSINESS REVIEW
in November to 4,0 per cent in December. Production of
lumber, however, continued at a steady rate, the output in
both November and December being 16 per cent of normal
production. Due to the maintenance of production and the
small volume of shipments an increase was shown in stocks.
Stocks held at the close of December were 83 per cent of
normal, while stocks on hand November 30 were 79 per
cent of normal. Unfilled orders on the books of 50 reporting mills on December 31 amounted to 4,2,039,402 feet of
lumber, as compared to 4.9,169,050 feet recorded at 52
mills at the close of November.
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ComplcFieldtions
North Texas
383
Central-West Texas .... 270
Elast-Ccntral Texas......
~
East Texas ....................
8
Texas Coastal.............. 71
Southwest Texas. ....... .. 18
Texus Wildcats.............. 81
Produccrs
280
187
3
57
14
2
Gas
Wclls
3
7
0
1
0
4
1
FailInitial
urcs Production
100
60,197
76
39,165
1
6~5
2
14
97,164
0
1,726
28
170
Total Texas.................... 780
North Louisiann. ......... 105
543
47
16
24
221
34
189,066
4,599
Dec. Totals , Dis trict.... 885
Nov, 'rotals, District.... 867
590
666
40
41
255
260
193,659
174,604
lE;11I11111111'""1111111111 II 1111111111111 11 111 111 1"" 11111111111111111111111111111111.11"'111111111111111111'11.,1111
8 .
'
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~:
:
(Oil statistics compiled by the Oil Weekly, Houston, Tl!xas )
LUMBER
Due largely to seasonal factors, both orders and shipments of lumber from Eleventh District pine mills during
December reflected sharp declines from the previous mouth,
Shipments for the month were 61 per cent of normal production as compared to 81 per cent in November, while
orders declined from 28 per cent below normal production
11 '.1111111111111111111111111111111111111111111111111111.1111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII[!)
DECEMBER PINE MILL STATISTICS
Number of reporting mills......................................
50
Production .................................................................... 92.784.584
Shipments ..... ............ ..................................... .............. 67.087.953
Ordcl's .. ....... .................... .. ........................................... 66,881,059
Unfilled orders , December 81 ................................ 42,089,402
Normal p r oduction ............................................_....... 110.159,114
Stocks, December 81 ...................... ............................ 268.413.942
Normal stocks .... ............................................... ......... 317,641,264
Shipments below normal production .................... 48,121 .161
Actual production below normaL ..................... .... 17.424,530
Orders below normal produetion .......................... 48,828,055
Stocks below norma!... ............................................... 54,227.322
§:::
:
§_
:
u
~
~: :
feet
feet
feet
feet
feet
feet
feet
feet-89 0/0
feet-16%
feet-40 %
feet-17 %
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§:::
:
§_
:
~
I!)
BUILDING
The valuation of building permits issued at principal mits issued during the first quarter of 1926 over that of
centers of this district during December reflected a large the same period of 1925. This margin however, has been
increase over the previous month but was considerably be- gradually diminishing since that time and the volume for
low the total shown for December last year. Permits issued the year 1926 reflected a decline of 1.1 per cent from that
during the month were valued at $6,84.2,613 which reflects of the previous year. It will be noted that considerable aca gain of 53,4 per cent over November and a decrease of tivity was evidenced in the ci Lies of Beaumont, Fort Worth,
29.9 per cent from December 1925.
Galveston, San Antonio, and Wichita Falls during the year,
although these increases were not sufficient to offset the
A substantial increase was shown in the valuation of per- declines in other cities of the district.
00.111" II 1111'11111"" 11111111 11111111111111111111 "11111111111111111111111111111111111111111111111111111111111111111111'11111111111111 .. 111.1111111'"1111111111111111111111111.11111""'1111111111.11II till 11111 III I. 11111 II 11111 11111 11111 11111 1111 1 II
::
BUILDING PERMITS
Dec .• 1926
Valuation
No.
Austin .................
Beuumont ........ .....
Dallus ...................
EI Paso ...............
Fort Worth .........
Galveston .............
Houston ...............
Port Arthur...........
San Antonio .......
Shreveport ...........
Waco ................... _
Wichita Falls .......
13
105
284
56
239
179
880
67
220
182
14
148
Dec .• 1925
$
10.240
~ ... 008
374.260
64,157
977,468
69.841
2.467,118
82.423
1.159,890
149.843
23.135
890.730
No.
31
80
351
38
150
211
824
156
228
236
28
128
Inc. or
V.luation
$ 532.999
51,854
1.284.445
66,165
568,760
107,589
5,948,208
76.166
541,737
887, 868
74.205
124.045
Nov. 1926
Dec.
98.1
+1017.7
70.9
8.0
+
71.9
35.1
58.6
+
8.2
+ 114.1
61.6
68.8
+ 618.1
Value,.
tion
No.
27
164
379
60
278
234
461
107
279
217
24
110
$
29,084
238.224
478,834
89,803
805,400
98,962
1,580.258
66,768
484,136
I D4,521
43,418
462,515
Twelve Months
1926
1925
Inc. or
Dee.
- 6S.5
+146.1
- 21.8
+ 68.2
+ 21.4
- 25.7
+ 61.2
+ 28.6
+189.6
- 23.2
- 46.7
+ 92.6
No.
Valuation
476 $ 1,124.158
1.970
2,451.961
4.210
16,014,275
724
1.168.657
8,859
17.022.446
3.005
8,213.041
5,637
28,511,810
1,896
1.326,625
3.880
14.468,527
1.969
5,866.808
420
1.094,675
1,906
10,008.928
No.
Valuation
588 $ 2.324.468
1,866
1,688,871
5.444
27,856.175
765
2,188.332
2,640
8,847,887
3,423
1.707.871
6,199
35.285.098
1.636
1.091,714
3.813
9,4 28 ,0·13
3,051
5,4D2,018
664
1,890,296
1.678
5,622,541
(!J
::
Inc. or
Deo.
- 51.6
+49.6
-41.6
- 46.8
+92.4
+88.2
- 19.2
+21.6
+58.5
- 2.5
- 42.1
+78.0
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CEMENT
I
I
Shipments of Portland cement from Texas mills during
December reflected a sharp decline as compared to' the
previous month and were below those in December a year
ago. December shipments amounted to 316,000 barrels as
compared to 427,000 barrels in November and 34,2,000 barrels in December, 1925. Production at these mills also
declined in December, as in each of the four preceding
f:.'
""''''''''''''''''''''''''''''''''''''''''''''''''''':~~~:~~~:''~;~;'~~~~~':':~~"'~~~~'~~~~~";~~;:;;;"~~;:~";;~::~:;'"''"""""""""''''''''''''''''''::~'.''''''i:_
December
1926
:
~ ~hf~~~~~ f~~.JeT:...Mi~~iiii:::::::::::::::::~~
::
months and reached the lowest level since January this year.
Stocks on hand at the close of the month were 16.5 per cent
greater than stocks held at the end of November but were
6.7 per cent below those on December 31,1925. Both production and shipments during 1926 reflected an increase
over 1925 being, respectively, 4,.1 per cent and 7.3 per cent
greater.
Stocks at end of month lit Texas mills...
m:m
444.000
December
1925
or
Dec.
November
1926
or
Dec.
m:~~~
= ~:~
m:~~~
=2~:~
476.000
-
6.7
881.000
+16.5
Twelve Months
1926
1925
~:m:~~~
~:~~~:~~~
or
Dec.:
:1=
~:~ ~
::
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MONTHLY BUSINESS REVIEW
8
SUMMARY OF NATIONAL BUSINESS
CONDI~IONS
(Compiled by the Federal Reserve Board as of January 25. 1927)
Volume of output of industry decreased further in December to the lowest level in more than 'a year, and wholesale prices continued to decline. Easier conditions in the
money market in January reflected the usual seasonal
liquidation after the turn of the year.
PRODUCTION
In December for the third consecutive month, there was a
decrease in industrial production, and the Board's new index, with adjustment for seasonal variations, was 105 on
the basis of the average for 1923, 1924., and 1925 as 100.
This compares with 113 in September the high point of the
year and with 108 a year ago. The decline since the recent
high point has been entirely in the manufacturing induslries, as the output of minerals was at a record high level
in November and showed only a slight decline in December.
By far the greatest recession of recent months has been in
the automobile industry, output of passenger cars and
lrucks in the U. S. decreasing from 425,000 in August lo
] 65,000 in December. Reduction in the manufacture of
aUlomobiles is usual at the end of the year, when planls
close for inventory taking and repairs, but in December
1926, the decline was considerably larger than usual. Production of iron and steel has also been sharply reduced
since the middle of August and activity in the woolen and
worsted and silk industries has been somewhat curtailed.
Production of lumber, cement, and other building materials
has reflected the usual winter decrease in demand. Cotton
consumption, on the other hand, was larger than in any
previous December. Factory employment and payrolls declined further in December reflecting decreases in nearly
all industries except cotton goods, clothing, foundries, machine shops, and printing and publishing. The value of
building contracts awarded ' in December, as in November,
was larger than in the corresponding period a year earlier
but for the first three weeks of January contracts were in
smaller volu:ue lhan during the same weeks of 1926.
TRADE
Retail sales during the holiday trade in December exceeded all previous records. Sales of department stores
were approximalely four pel' cent larger than in December
of last year and sales of mail ord er houses while slightly
smaller than in 1925 were larger than in the corresponding
month of any other year. Sales at wholesale, on the other
hand, declined in December and were smaller than a year
ago in practically all leading lines except shoes. Merchandise stocks carried by Department stores were reduced
slightly more than is usual in December and were somewhat
smaller at the end of the month than in 1925 and wholesale
stocks were also slightly smaller than a year ago.
PRICES
Wholesale prices declined further in December and the
Bureau of Labor Statistics index at l4.7 for that month was
at the lowest level since the middle of 1924. Prices of agricultural products, which declined considerably in October
and November increased slightly owing to advances in
prices of grains and cattle. In January iron and steel prices
were slightly reduced and there were further declines in
bituminous coal and non-ferrous metals, while prices of
cotton goods and coke advanced.
BANK CREDIT
At the reserve banks during the four weeks following
the peak of the seasonal currency demand th~re was a return flow of Federal reserve notes and other cash from
circulation amounting in the aggregate to about $4.00,000,000. This return flow of currency was in about the same
volume as a year ago· and together with substantial gold
imports, was reflected in a reduction of the volume of
reserve bank credit in use to a level on January 19 lower
than at any time since the summer of 1925. Loans and
investments of member banks in leading cities after increasing to a record level at the end of the year, declined sharply
in January. Commercial loans which had reached their
seasonal peak in November were in the middle of January about $200,000,000 below the maximum figure but still
more than $300,000,000 above the level of a year ago.
Loans on securities of the reporting banks also declined
afLer the turn of the year, following a large increase in
December and were slightly smaller than in January of last
year. Easier money conditions prevailed in the money
market in January and rates on prime commercial paper
declined from 4·0 to' 4% per cent and those on bankers
acceptances from 3% to a range of 3%-3%, per cent.
@FedFRASER