The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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:
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MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
c.
C. WALSH,
CHAS. C. HALL-W. J. EVANS,
Chairman and Federal Re8eno Agent
Assistant Fedoral Reserve AlI'enta
(Compiled January 15, 1928)
~1I1I .... I1 ........ I1 ...... IIII.II .. IIIII ... IIII .. IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ... 11I1I .11 .. 111111111111111111111111111.111111,111'111111 .. 111111111 .. 11111111111111111111111111.11 ............... IIII ..... I I I .. '"IIIIIIIII .... IIIIIII ... ' ..... III ...... r.
Volume 12, No. 12
Dallas, Texas, February 1, 1928
This copy released for publlca-
Jan. 31
cation in morning papers
DISTRICT SUMMARY
~"II"IIII'IIIIIIIIIIII'III'"'"IIIIIIIIIIII""'''IIIIIIIIIIIIIIIIIIIIUII''" 11111111111'"111.111""1111111.11111111111111 •• 1111.111,,1.11111.111111111111.1111111 .. 111 .. 11 .. 1111111."1111111111111111 ...... 111.1" .. 1111111.1111111111.1111 IIIIIII~
:
~
~
~
THE SITUATION AT A GLANCE
:
~
Eleventh Federal Reservo District
Bank d. bita to individual accounts (at 1S cities).........................................................................................
~_ ~:::~:,nBn:nk~~:n:8;~S;;;;;;;·b~;:·b~;;k;;··~t··~-;;d··~f··.:;;~~·th:::::::::::::::::::::::::::::::::::::::::::::::::::::.:::::::::::::::::~::::::::.
Reserve Bank ratio at end of month .................................................................................... _...........................
$8~;~Oe1~~e;0
$
877.792
67.9 0/0
$~:;.~~~~~O
$
6.78B.gS8
~
In;.nc. or
~:~.
68.6 0/0 Inc.
1fi£g~~~~~\~I~E::f~~~~~!f~~:~~~:~::~~~Z~:~; ;~ ~;~; ~:~: : :~ ;~ ; ; :; ;~; ~: : : : : : : : : : : : : : :~ ~:~: :~:~ : : ~ :;~; ~ ~ ~ : :2;;;;;;;U : 2::;;;;;11 \~l:
: ....
Lumber orders at pine mills (per eent of normal production) ....................................................... _...........
8 ~11
72%
82% Dec.
D~~3% ~
87~:~ _~
4.4 pointa
2!8~~~i :'
10 pointa
1...... 11 .............. 1I.1I1 ..... 11111111 .. 1I1I1I1I.1I1 ... 1I .. 1I1I .... 1I .. 11 ...... 11 .. 1I1I .. 1I1I1I1I1I.1I1 .... III~ ....... IIIIII ... IIII .. II .. I ... III .. IIIIII .... III .. III .... 11I1 111111 .. 111111111111111111 ........ 111111.111111111 .. 1111 ... 111111 ..
The large volume of buying at retail establishments and
the heavy liquidation of Federal Reserve Bank credit which
carried loans to member banks to the lowest level reached
since the pre-war period were important developments during the past month. The sales of department stores in
larger dties reflected a seasonal gain of 56 per cent over
those of the previous month and ex.ceeded those of December, 1926, by 6 per cent. The distribution of merchandise
in wholesale channels, while seasonably smaller than in
November, was in a larger volume than in the corresponding month of the ~revio~s. year .. The conservative n~er
chandising and credIt polICIes whICh were pursued durmg
the past year are being continued and merchants are in a
much stronger financial position than they were a year ago.
Due to the growing confidence in the business structure and
the large purchasing power of the dbtrict's population
leaders are becoming more optimistic regarding the outlook
for the coming year. In fact, reports from some quarters
indicate that a considerable improvement in business was
noted during the first two weeks of January. The volume
of public spending in Decemb~r as measured ?y charges to
depositors' accounts at banks m the larger cItIes reflected
a gain of 8 per cent over the previous month and were 6 per
cent larger than in the corresponding month a year ago.
Financial statistics gave further evidence of growing
strength and stability. The combined net demand and time
deposits of member banks rose to $915,317,000 on December 7, reflecting a gain of $8,174,000 over those a month
earlier and were $121,423,000 larger than on December 29,
1926. Federal Reserve Bank loans to member banks declined from $6,783,963 on November 30, to $877,792 on
December 31. While these loans had increased to 83,914,·
875 on January 14, due to seasonal influences, they were
8
$1,708,718 less than on the corresponding date in 1927.
Commercial banks are carrying large cash and secondary
reserves and there is still an active demand for commercial
paper and bankers' acceptances as an investment outlet for
surplus funds. While the number of commercial failures
and the volume of indebtedness reflected a further sharp
increase during December, they were substantially less than
a year ago. The increase at this season, however, is not
unusual as the strain of year-end settlements almost invari·
ably discloses a larger number of insolvencies. It will be
noted that the defaults this year were largely among the
smaller concerns.
Weather conditions were not altogether favorable to agri·
culture. While the rains benefited growing crops and left a
good season in the ground in most sections, they retarded
harvesting o'perations and winter plowing. The low tern·
peratures did considerable injury to small grains and some
reseeding will be necessary. The rains likewise stimulated
the growth of winter weeds and grasses on the rallges, yet
there are a few sections where more moisture is urgently
needed. Livestock withstood the cold weather unusually
well and in most sections are in fair to good condition.
Market prices for cattle reflected a further upward trend
and during the first half of January reached the highest
level in several years.
.CO?struction a~tiv!ty as .~easured by the valuation of per.
mlts Issued at pnnclpal cItIes showed a further gain of 11
per cent as compared to the previous month and was 12 per
cent greater than in December last year. The production
shipments, and new orders for lumber and the productio~
and shipment of cement reflected the usual year-end decline
but were larger than a year ago.
MONTHLY BUSINESS REVIEW
2
CROP CONDITIONS
The wet and cold weather prevailing during the greater
part of the past month prevented the completion of harvest.
ing operations and greatly retarded winter plowing. The
rains which fell over a large portion of the district have
relieved the drouth in practicaUy all sections of the district
except portions of West Texas and Southeastern New
Mexico. While the rains toward the middle of January partiall y relieved the situation in the latter sections, more rain
is urgently needed. The extremely low temperatures prevailing during the latter part of December had an adverse
effect upon small grains as the plants in many instances had
been weakened as the result of the long period of dry
weather and the rains in December had not sufficiently revived the plants to enable them to withstand the cold
weather. Reports indicate that a considerable portion of
the oat crop has been either killed or the stand reduced.
In some instances damage to the wheat crop has likewise
been reported. With a good season in the ground, however,
some of the acreage will be reseeded.
The Department of Agriculture in its report of December
1, indicated that the acreage sown to wheat in the fall of
1927 totaled 2,629,000 acres, which was 8 per cent greater
than the acreage sown in the fall of 1926. The condition of
the wheat crop on that date was 73 per cent of normal as
compared to 85 per cent on December 1, 1926. The acreage
of winter wheat in New Mexico was reported as 20 per cent
greater than in the previous year and the condition on
December 1, was 62 per cent of normal as against 78 per
cent a year earlier.
The preliminary estimate of spinach plantings in Texas
was placed at 23,650 acres, which was fully 4,000 acres
greater than in the previous season and about 9,000 acres
greater than the average for the last· four years, While the
shipments of spinach were heavy during the early part of
December, the cold wave which reduced the yield in some
sections and practically killed the crop in others, has considerably reduced shipments. A substantial portion of the
acreage which was killed by the cold wave, however, will be
replanted. Frost damage to vegetables in the lower Rio
Grande Valley was not very extensive but shipments' were
temporarily reduced.
THE YEAR'S CROP RESULTS
According to the estimates given out by the United States
Department of Agriculture, the yields of the principal crops
in Texas for the years 1926 and 1927, were as follows:
.
8.,111111111111111111111111111111111111111.111.1111111111111111111111111111111111""11111111111111111111111"1'11111111111111111'1111'"'11'"'1111111111111111111'11'''IIIIIII . ''IIIIIIU''IIIIIIIIIIIIIIIIIIIIIIIIIIIIII'"IIIIIIIIIIIIIIIIIIIIIIII 1111
I!)
COMPARATIVE PRODUCTION AND VALUE OF 'l'EXAS FARM PRODUCTS COMPILED BY THE UNITED STATES DEPARTMENT OF
AGRICULTURE
Commodity
Barley..............................
Corn.................................
Cotton..............................
Hay-tame.....................
Grain sorghums ............
Oats.................................
Peanuts...........................
Iris h potatoes ............ .. _
Sweet potatoes..............
Rice..................................
WheaL............................
- -QUANTITY- 1927
1926
3,120,000 bu.
6,090,000 bu.
119,847, 000 bu.
106,868,000 bu.
4,280,000 bales
5,628, 000 bales
1,282,000 tons
1,392,000 tons
34,178.000 bu.
48,276,000 bu.
42,063,000 bu.
83,666,000 bu.
70,200,000 lbs.
45.440,OOOlbs.
2,81 0,000 bu.
2,100,000 bu,
ll ,970,000 bu.
8,556,000 bu.
6,279,000 bu.
6,14 2, 000 bu.
17,945,000 bu.
32,796,000 bu .
Inc. or Dee.
Dec.
2,970 .000 bu .
Inc.
12,484,000 bu .
Dec.
1,348,000 bales
Dec.
160,000 tons
Dee. 14,098,000 bu.
Dec. 41,603,000 bu.
Inc.
24,760,000 lb..
Inc.
210.000 bu.
Inc.
8,414,000 bu.
Inc.
187,000 bu.
Dec. 14,851,000 bu.
- - VALUE1927
1926
$ 2,184,000
$ 8,228,000
77,576,000
64,1l8,000
413 ,020,000
808,912.000
13,968,000
16,150,000
22,216,000
26,552 ,000
19,770,000
81,798,000
2,457,000
2.045 ,000
3,812,000
4,200,000
8,978,000
8,128,000
5,400,000
6,756,000
21,718,000
89,355,000
Inc. or Dee.
Dec. $ 1,044,000
Inc.
18,458,000
Inc.
109,108,000
Dee.
2,182,000
Dee.
4,386 ,000
Dec.
12.028.000
Inc.
412,000
Dec.
888,000
Inc.
850,000
Dee.
1,856,000
Dee.
17,642,000
~ .......... ~~.~~ . ~::.~~ . ~.~. ::.:~~.~. ~~.~~~.:;:::::.;;::::.;::::.::::.;;:::::.;:::::.;:::::.;;::::.;;:::::.;:::::.;:::::.;;::::.::::::.;;:::::.::::::.;:::: ..........~.~~~.:~.~~:~.~.~...........~~~.~:.~~~:.~~~ ......~.~.:: .....~. ~~:.~.~~'.~.~~ . ~
From the above table it will be noted that there was a
decrease in both the production and value of all grain and
feed crops with the exception of corn. In the latter instance
there was a substantial increase in both production and
value. In the case of the other feed crops, while the price
in every in~tance excep~ hay was higher ~h?n in the previous
year, the. mcreased. pnce was no~ suffICIent to offset the
smaller YIeld. WhIle the productIOn of cotton was 24, per
cent less than in the previous year, the value of this crop
was 36 per cent greater. The agricultural situation at the
close of 1927 was considerably better than a year earlier.
During the year 1927 greater diversification was practiced
and more farmers made their living at home than has been
the case in several years. The heavy production of corn,
together with the satisfactory yields of other feed crops, has
provided most farmers with ample feed for use in connection with the making of 1928 crops and in many instances
has provided a surplus for the market. The large returns
f
th
tt
h
bl d f
l' 'd
. ro~. e co on crop ave ena e
armers t~ lqlll ato
theIr mdebtedness and to enter the new year WIth surplus
funds.
LIVESTOCK
Beneficial rains fell over practically all of the Eleventh cold weather practically no losses were reported. Livestock
District during the past thirty days relieving the drouth in in most sections are wintering well although some feeding
most sections, stimulating the growth of winter weeds and has been necessary.
grass, and replenishing the supply of stock water. While Movements
While receipts of cattle and calves at the
some rain was reported in most of West Texas and SouthFort Worth market showed a marked
and Prices
eastern New Mexico it was insufficient to overcome the
decline from the heavy receipts during
effects or the long period of dry weather and more moisture November they were considerably larger than in December
is urgently needed. In these sections, range conditions are a year ago. The receipts of hogs and sheep were substan·
generally poor but elsewhere they are reported in fair to tially larger than in either the previous month or the same
good condition. While livestock shrank somewhat during month last year.
the period of extremely low temperatures, they have been
holding up well and due to the absence of storms during the
The cattle market showed a further upward trend during
MONTHLY BUSINESS REVIEW
December. Prices reacted somewhat toward the middle of
the month due to the heavy receipts but with the sharp de·
cline in shipments during the last half of December and the
early part of January prices again turned upward and
reached a new high level. Hog prices showed a further
downward movement. While trading in the sheep division
was restricted owing to receipts, prices remained generally
steady.
m...............................................................1., ••••••• ,•• ,••••••••••• ,.................. ,.......... 18
~
§
FORT WORTH LIVESTOCK RECEIPTS
:
I§
§
~:;~mer ~e!.~~ber
::!~:8
N;I!.~bler
~~ii'~:l
24.879
4,704
67,602
28,419
Csttle ................
Cnlves ................ 29.083
Hogs .................... 24.973
Sheep .................. 29,886
22.721
9.664
G
G
G
2.262
19,672
L
G
G
20,871
18,888
:
I§
4,102
10,463 ;;
1!l
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G' ........ II.I.III.I.,.I.III.I'.'.,.I ••••••••• , •• ,I •• '""""""""".1, •• 1"""1"
0·········..·······,··..
I
Dec.
m........
•• 11.1 ••• 1.1'1.1"'" •• I •••• I'.U[!)
~~::p
Lambs
"::::: :::'.: : : : : : : : : :'.:: : ::: :'.: : : : : : : :::: : : : 13.76
~:~~
8".............
..................................................•...............
Nov.
Dec.
1927
$11.76
11.60
7.60
6.80
11.26
10.00
8.00
14.00
1926
$ 7.60
7.76
6.00
6.00
9.00
12.26
7.60
12.00
In
C;::a:08~=...a.~~ ~.~.~.~.~~:::: : : : :: : : : : :::: : :::~:: : ::::::::::
...
.1:
:
cotton (including linters) from all United States ports were
49.9 per cent less than in December last year and exports
8 .............................. '.......
8 ............
&
:§:!• • •
1.738,196
1,806,769
672.466
1.399.436
1.028,806
Last Senson
2.498,947
1,914,819
729.064
1111111111111111111111111111 .... 11111111111111111111111111,."111111 .. 11111111111111111"""1111111111111111111111,,,,0
SPOT COmON PRICES
;;
IK;""~ .";'~' ,;':' ' ' r;~ J'f;,~'.I: : : ~
~:: 6~le~.;~·~::::::·.: :::::::::::·:.:::·::.:·.:·:::.:::·.:::::'.:::::::~~~:~~
Dnllns .......
. . ....................... - .... .. ..........19.06
Houston .............................................................. 19.85
Galveston ................... ......................................... 19.90
6111.1 .........
$1~:~~
$~~:~~
17.66
18.40
18.40
18.00
18.80
18.85
11111111 .. " ........ 11111 ...... 11111111 .. 1111 ....... 1111111111111111 .. 1111 .. 111.,lllIlIllllIlIlIlIlIllIlIlrE!
COTTON CONSUMED AND ON HAND
I
COTTON GROWING STATES
AUlI'uet 1 to Dec.
Cotton consumed._.....__. __ .......·... __ ·· __._._·_··_.. _.. __ ·
§ Ootton on hand December 31 :
§
(a) In consuming cstnblishments._..... ___ . __.......
;;
~:\10
.::.::1
I!J
11111111 ... 11111 ............. 1111 .. 1111 ... 111111111111111111"11"'1111111111"110
01 ••••.•• 111 •••••• 111 ••••••••••• 11 •••• 1111.111111 ••••• 11111 •• , ••• 11 •• 111111111"' ••• '111 ••• 111111' ••••• '1 •• 11111.1."'lltl ••• lltI"II ••• IIIIIIIII'I.I"' •• II I IIII.11.11111 ••••• 111.111.11111 • • '1'111.,11111 ••• 111111 •••••• 111"'111,1111111,.111111.1111"
E
ID
11111111 ..... 1111111111111111.111 ..................... 111111 ........... 11111111111111 11111111111.11 .. 1111118
~.:. . .~;;;;~=.~~=::··;~;;;;~~;·;;;. ;:~:.::~:::::~:. ·T. . !:.~
587.968
580.826
1.061 .799
987.945
SEASON'S RECEIPTS. EXPORTS AND S'fOCKS AT ALL
UNITED STATES PORTS
August 1 to December 81
This Se880n
Last Sellson
Receipts ........................................................... 6,109.061
8.486.946
E xports: Great Britain .... ............................ 648.938
1.874.774
France ............................................ 637.708
610.767
Continent ....................•.. ..............2.094.120
2.580.897
Japan- Chinn .............................. 616,968
794.140
Mexico .......................................... 11.9.6
5.179
Total foreign ports ......................3.808,679
6.866.247
Stockl nt all U. S. ports Dec. 31 .............. 2,616.897
8.066.485
;;
Receipts .................. 800,649
llli<ports ..................860.816
Stocks, Dec. 81......
310.467
(;] 1 •• 111'1.1.111111" 1111 .. 11111 '".1111 •• 111111111 ' ....... ,1111111 """,,,,1.11'"1111111111111.,11,,, 11.1111'11111.11 .
Receipts and exports of cotton through
the ports of Houston and Galveston duro
ing December reflected a seasonal decline
bl
.
h
d
.d
as compare d to th e prevIOUS mont an were conS1 era y
less than in the corresponding month of 1926. Exports of
This Senson
8
R~~::N~:~=;~ TH~J~;:HET~:~~:\;, ~!.~~;l:.
Exports .........•.......194.483
Stocks, Dec. 81........
(r"1I.UIlIlIlI •• IlItI.III1 .. UIl ........ IIIII .... II ••• U .. It ......... III1I1II1I1I1U .. II.111I11.1I1111 ... III1I1· .. • , • ....
Cotton
M()1)ements
~~2G
i
m
UIlIlIU ...... UII ........... II .. II ................. I1 .......................... IIU ........ , .. 11.11 ..........
....
111 .. 11 .. 111111111111 .............................. . 11111111 .. 1111 .. 11111111111111111'11111111111111"1'0
~:~7
:::::::
l!J 1........... IU ....... III1 .... II .. III ... II ....... II ................................ II ....... 11 ..... II ........... IIII ...
COMPARATIVE TOP LIVESTOOK PRICES
1927
Beef steers ............ _.. _......................................... $13.50
Stocker .teers ...................................................... 11.26
Butcher cows ...................................................... 8.00
Stocker cows ....................................... ·................ 7.40
Calvcs .................................................................... 11.60
3
during the five months of the current season were 30.7 per
cent less than during the previous season. The domestic
consumption of cotton showed a further decline as com·
pared to the previous month and for the first time in more
than a year, the consumption for the current month fell
below that for the corresponding month of the previous year.
1.................................... 1"""""" "'.1"""",,,,,,,,"'.1 ••••• 1••••••• '1"" '8
E
GALVESTON STOCK STATEMEN'l.1
E
§:
Dec. 81,
Dec. 81 ~
1927
1926::
E For Grent Britain ........... _ ........................................ 13,200
38.000 §
;; For Frnnce .................................................................. 18.000
17.800 ;;
;; For other foreign ports ............................................ 67,400
84,000 §
;; For coastwise ports.................................................... 8,600
9.000 ::
2'::\~5~
1,206.411
5,349,869
UNITED STATES
AUl!'uet 1 to Dec.
31
2.:::::
1.226,121
6.261,791
1::!:598
1
r
81
6!!.~:6 8.:::'::~ 2':2e~~~
1.707,826
1.783,789
(b) rn public stornge nnd compre8se8._..._.. _.... _ ..·
5.656.786
6,548.267
1••• 11111.111 •• ,••••••• 111 ••••• "1.1""""",.'.1",1 ••• 1,,,,11 ••••••••• 1•• ,,1.,.,1",1."1,1,1" "".,,.111 •••• ,1""""",.,.11111,.1' •• ,1.1 ••• ".1,11,.1 ................. 11 •••••• 1••••••••••••••• '111 •••• ,••• 1,,1 ••••• , •••• ,•• 0
8111 •.•.•. "•.•.•.•.•...
[!JII' 11.11 .. II ..... II .... 11 ........ 1111 ......... 1111 .... 1111111 .................... 11 ............. II .. ' .... 11 .... 1111 .. 11 [!)
:
;;
•;;
STATISTICS ON COTTONSEED AND COTTONSEED;;
PRODUCTS
::
'l'exns
United States
Aug. 1 to Dec. 81
Aug. 1 to Dec. 81
This Season Last Scnson This Season Lnst Season
Oottonseed received
4,696,812
nt mills (tons) ........ 1.3.8,982
1,488,485 8.912,295
Oottonseed crushed
3.413,054
(tons) ... _................. 1,087,534
1,054,402 3,007,030
Cottonseed on hnnd
1,808,681
992.049
438.090
846.879
(tona) ..................... .
Crude oil produced
(pounds) ................ 306,998,.72 294,988,000 986.866,184 1.017.816,168
Cake nnd meal pro1.528.270
(86.000 1.885.729
duced (tons) ..........
478,708
980,403
856,268
305,000
Hull. produced (ton.)
294.629
Lintera produced
545,145
557.687
171.000
191.841
(running bales) ....
Stocks on hllnd
December 81:
Crude oil (pound.) .... 45.886,444 33,898.000 127,716.322 106.216,000
Onke nnd meal (tone)
8g,407
83.000
190.354
167.000
Hulls (tons) ..................
90,500
100,000
228,904
262,000
Linten (runnln.
67 •000
152,382
%20,000 g
bal ... ) ........................
n,ll 9
8 .. 11 ......... 11 .... 11 •• , ••• ,11.1 ••• 1 ...... 11.11 ...... 1.1.1 ............... 1I11 ......... III1 .. III1I1I1I1 ••• III1I1 •• III1.1!J
COTTONSEED PRODUCTS
A further slight decline was noted in the average price
paid for cottonseed during the past month by reporting cot·
tonseed oil mills. The price averaged $42.16 during the
week ending January 141 as against $43.12 during the week
ending December 10. The average price received for cotton·
seed products sold dUlling the month showed a mixed trend.
Cottonseed oil brought $.0843 per pound during the week
ending January 141, as compared to $.0873 per pound during
the week ending December 10. During the period, cake and
meal advanced from $39.27 per ton to $4.2.22 per ton, hulls
rose from $6.81 per ton to $8.71 per ton, and linters from
$.0384 per pound to $.0410.
TEXTILE MILLING
Operations of Textile mills in the Eleventh District con.
tinued in December at near the same rate as during the pre·
4
MONTHLY BUSINESS REVIEW
ceding month. There were 3,019 bales of raw cotton con·
sumed as compared to 3,116 bales in November and 3,265
bales in the same month of last year. Production of cloth
was only 1.2 per cent below that in the previous month and
less than one per cent below the output in December, 1926.
As compared to a month earlier, orders on hand on December 31, declined and were slightly less than a year ago.
Stocks continued to increase and were larger at the close of
December than on November 30, and December 31, 1926.
fi]111111.11111.,IIIIIIIII.' •• III.I.III ••••• lllllllltllll.11111111.1111111111' •• 1111,.,11",.11.1.1,,1111111111111111111 • .
E
TEXTILE MILLING STATISTICS
l!]
§
IS::E; r~::l:difo::~~;t;;~]fii :.~~~l! ~:~!~~ I
[!J"I.I.I •• III •••••• ' •••• II ••••••••••••• I ••• IIIII ••••••• 11111"""'.111 •••••• ,1 •• 1.1111111111111,1""'1",.,"""""'0
WHOLESALE TRADE
Midsellson quietude prevailed in most lines of wholesale
trade during the month of December. While in most lines
sales reflected a substantial seasonal decline as compared to
the previous month they were noticeably larger than a year
ago in three reporting lines and the decline in the other line
was small. While sales in all reporting lines during 1927
fell below those of the previous year, it should be noted that
business generally is now in a much stronger position than
it was a year ago. The demand for merchandise during the
first eight months of the year was slow in all lines of trade
but as soon as the farmers were able to definitely gauge the
outcome of 1927 crops business began to improve. While
buying was not as heavy during the fall as merchants generally anticipated, there was a heavy liquidation of indebtedness at both retail and wholesale establishments. Throughout the year merchants operated on a conservative basis and
in most instances limited buying largely to actual needs.
Thus, with stocks in only moderate amounts and with a substantial portion of the carryover indebtedness liquidated,
the merchants are entering the new year in a considerabl y
stronger financial position. With a large proportion of
the indebtedness liquidated and with bank deposits at the
highest point on record, and with sufficient feed in the hands
of the farmers for use in connection with the making of 1928
crops, it will be seen that the population of this district has
a large purchasing power and the potential demand is sufficiently large to warrant optimism during the year 1928.
Sales of reporting wholesale grocery firms reflected a
further decline of 6.6 per cent as compared to the previous
month and were 1.5 per cent less than in December, 1926.
The demand appeared to be somewhat spotted as business
in some sections was active and slow in others. Collections
were slightly smaller than in the previous month. Prices
remained generally steady. Dealers report that the outlook
for the future is fair to good.
.
The demand for drugs at wholesale during December reflected a seasonal decline of 5.7 per cent as compared to
November but was 7.4 per cent larger than in the corresponding month a year ago. Sales during the last half of
1927 were practically the same as those during the same
period of 1926. For the last three months of the year business has shown a gradually increasing margin over the
previous year and dealers state that the outlook for the new
year is much more favorable than it was at the beginning
of 1927. While collections were less than in the previoull
JXlQnth, they were substantially greater than in the corresponQn~ month last year. Prices were reported as gener-
ally steady.
The past month witnessed a further increase in the de·
mand for farm implements. Sales were not only 24.5 per
cent greater than in the previous month but were 156.0 per
cent larger than in December, 1926. Although buying during
the first eight months of the year fell considerably under that
for the corresponding months of the previous year, it has
shown a remarkable improvement since the beginning of
September, at which time the farmers were able to gauge
fairly accurately the outcome of the 1927 crops. Sales during the last half of the year averaged 36.4 per cent greater
than in the last half of 1926. The outlook for the future is
considerably improved. Prices were reported 8S generally
firm.
The eales of reporting dry goods firms reflected 11 further seasonal decline of 39.9 per cent as compared to the
previous month but showed a gain of 13.4 per cent as compared to the corresponding month last year. Although De·
cember is usually a quiet month in the wholesale dry goods
trade, the cold weather prevailing during December stimulated the demand for merchandise at retail with the result
that wholesalers received a large volume of 'fill-in' orders.
Reports indicate that there has been an increased volume of
buying during the first half of January and dealers state
that the outlook for the new year is favorable.
Sales of reporting hardware firms showed a slight .decline
as compared to both the previous month and the corresponding month a year ago. The demand, however, appeared to
be somewhat spotted as sales in certain districts reflected
a gain while those in other districts reflected a decline. The
cold weather in December stimulated the demand for seasonal goods. Collections showed an improvement over
those of the previous month.
~"'''II''''''''''II''''III'''''''''''''''''"tll ... tI''III''''IIIIII'''''''It'"I''I'''1I1 .............. tI ........... ~
0 ..
Net Sales
Net Sales
Dec. 1927
July 1 to date
compared with compared with
Dec.
Nov.
. ame period
1926
1927
las t year
Groceries ..............1.5
- 6.6
- 8.6
Dry Good• ........ .. + 18.4
- 39.9
+12.4
Farm Implements+156.0
+ 24 .5
+86.4
Hardware _ ..... _..2.1
- 4.0
-18.2
Drugs _.... _._....... + 7.4
- 5.7
.8
Stocks
Dec. 1927
compared with
Dec.
Nov.
1926
1927
+ 7.6
- 10.9
+ 8.2
- G.8
-14.0
+ 1.5
- 3.0
+ 1.1
- 6.a
- 4.6
1111 ......................... 11 .. " ...... 1111 ...... 11111 ..... 1111.11"' ... 11111111 .... 1111.111 ..... 111 .......
~
11.11·',8
RETAIL TRADE
The heavy consumer demand for merchandise, stimulated
by the cold weather and Christmas shopping, was the outstanding feature of the retail trade situation. Sales of department stores located in larger cities reflected a gain of
55.9 per cent over those of a month earlier and were 5.6 per
cent larger than in the closing month of 1926. The gain
over a year ago is more significant when it is recalled that
buying in December last year was very active. Since midsummer the decline of the current month as compared to the
corresponding month of the previous year gradually diminished and sales in November were only slightly less than
in the previous year. The sales for the full year 1927 averaged only 1.0 per cent less than in 1926. Since the first
of the year, department stores have been featuring "clearance sales" to reduce the stocks of winter merchandise in
preparation for the receipt of spring goods.
Stocks at the end of the year were 24.2 per cent less than
at the close of November and 5.8 per cent less than a year
MONTHLY BUSINESS REVIEW
ago. The ratio of sales to average stocks during 1927 was
Collections reflected a slight decline during the past
300.5 per cent as compared to 285.0 per cent in 1926, indio month. The ratio of December collections to accounts reo
cating that the dep artment stores obtained a more rapid ceivable was 37.0 per cent as compared to 39.0 per cent in
turnover of stocks during the past year.
November and 39.4 per cent in December last year.
0
1111 .............. 1111 ................................................... 1111111111111111 .. 1111111 .. 1t.tI .. III .... IIII.IIIII .. ~.IIIII.II .... I ......... I .... I " " .. IIIIIII .. IIIIII .. IIIII .. 1I1 11111111111111111111111 .. 111 ....... 111111111111 .. 111111.11119
I:l~Jg:i.t~:E:~~~;.::~7.::~::;:E:;~i~;;;=;; ;:~~= i:f.f 1~r rf:i s.~t:;r 1:'! f~:i ;~:!.
::
BUSINESS OF DEPARTMENT STORE S
December, 1927, compa r ed with December, 1926 ---_______ ________
December, 1927, compar ed with November, 1927 ..________________._ ___
J a nuary 1s t to date as compar ed with sam e period las t year ___________
Stocks:
December, 1927, compared with December, 1926 _____________.______
December, 1927, compar ed with November, 1927..____ __ __ ___________
P ercentage of sale. to a ver age stocks in :
December, 1926 ________.____.________________________________________----- -----------.
December, 1927 _______________ ___________ _____ __________ _
:
Percen
togeryof1 sales
to a ver age
J a nua
to December
31,stocks:
1926_. ____ ._. ___ ._____. ___.___________ ____ __..
January 1 to December 81, 1927... _._.. _... _ _......_........__.. __. ______.___ ..
Ratio of outstanding orders to IlIBt year 's pur chases ........... __..........................
Ratio of December collections to accounts r eceiva ble a nd outstanding
December I, 1927._. ____• ._ . _... _.... _ ...... _.... _ .... _...._.. __ ....-.. .- .- -..-
+ 7.2
+ 35.4
4_9
-
+
;:
11.4
+ 64 .8
+ 7_6
+ 10_6
+ 56.6
- 14_ 1
+ 8.2
+ 52_5
+ 1.0
+ 9.5
+ 61.8
2.0
-
4.0
32.1
+
.2
- 23.4
-
-
40.1
48.3
46.8
47.9
60.1
52.7
40.2
45.7
40.9
44 .8
42.7
46.3
274.1
287.1
6.4
268.1
286.8
2.6
828.6
84 8.8
6.1
80ll.9
306.8
8.3
276.5
298.7
6.4
286.0
300.5
5.0
33. 0
87.5
89.7
44.0
39.7
87.0
8.6
21.1
18.4
24 _9
+ 9.0
+ 46.4
8.6
.5
21.2
-
6.8
24.2
8 ................... ,...... 11 ..................... 111 •••• 1........................... 1••• 111.11 ••• 11111 •••••••••••• 11 ••••• '•••••••••••• • •• 111 ••• 1••••••• , ••••••• , •••• , .......... 1•••••• 1..... 1••••• 11 ............ 1•••••• 1.... 11 ••••••• 11 ••••• 1••• 1,"""'0
FINANCIAL
The volume of public spending in December, as measured close of the month amounted to $8,292,930 as compared to
by charges to depositors' accounts at banks located in sixteen $7,755,284 a month earlier and $5,763,025 on December 31,
principal cities in the Eleventh District, showed substantial 1926. Acceptances executed against import and export
increases over both the previous month and the same month transactions declined from $1,687,855 on November 30 to
last year. Debits to accounts at banks in these cities amount- $1,395,927 on December 31, whereas, those based on the
ed to $892,013,000 representing an increase of 8.3 per cent domestic shipment and storage of goods rose from $6,067,over November and 6.3 per cent over those in December, 429 on the former date to $6,897,003 on the latter date.
1926,
Condition of
As is usual at this season of the year,
~.II
DEBITS ..~olliNDivi:·DUA·L.. ACC·oUNTS...... u .. " .. I!] Member Ban:ks commercial loans of member banks in
::
(In 'l'housands of Dollars)
in Selected
selected cities showed a further decline
§:
Dec.
Dec.
I nc. or
Nov.
I nc. or
Cities
during December. These loans, which
1927
1926
Dec.
1927
Dec.
: Abilene ...................... $ 18,130
$ 14,198
- 7.5
'12,781
+ 2.7
amounted to $246,247,000 on January
: Austin ........................ 28,432
22,554
+ 8.9
20,372
+16.0
4th were $6,153,000 less than a month earlier but were
: Beaumont ...,.............. 25,179
25,053
+.5
21,684
+ 16.4
: Corsica n.. .................. 8,086
9,244 - 12.5
6.124
+82.0
$7,301,000 greater than on January 5, 1927. Loans on
: Dallas ........................ 269,485
23 5,902
+14 .2
258,992
+ 4.1
, ,
f
d I"
d '
N mb
: EI PIIBO ...................... 36,672
35,048
+ 4.6
35,098
+ 4.6
corporate secuntles a ter ec lDmg urmg ove er rose
: Fort Worth ................ 120,008
98,696
+21.6
106,374
+12.8
$1,766,000
during
December
and
were
$12,562,000
greater
:: Ga lveston .................. 47,187
59,149 - 20.2
53,920 - 12.5
: H ous ton _..... _.... _....... 217,802
208,687
+ 4.2
188,817
+18. 2
than a year ago. Investments in United States securities
.......... IIIII ........
·III ....
1111
_i~:- i::~{~~~~~: : : : : : : ~~:m
. .~~':~~'±
~~:~~~ t2~:~:~~ :1~ f:~8;048~7~5:~ ±lH
~04'm
~:c~n .:: ::: :::: : : : : ~~:m
l~:~g~ +~t~
.±s~:~
_
Shreveport ................
Texarkana
................
,
Wichita Falls ............ 28,056
§ Total 11th Dis trict ..$892,018
: "Not included in total.
-+15.4
17.5
,
34,520
$838,813
-18.7
+ 6.3
23,454
25.965
$823,691
+ 8.1
+ 8.3
: : _~:
:
I!J'..... II ........... II II II II II 1",,"11....1111"""" II III II""""""'"'''' 11 ...1.. III ................... 11· ...... 0
Acceptance
Market
After declining in November the volume
of acceptances executed by accepting
banks in the Eleventh District and out·
standing at the close of the month increased in December
reaching the highest point in several years on December 31.
The volume of acceptances executed and outstanding at the
~:o~h~r ~t~~~e:n~hb::d~ d~cf!:;IS~~~,;ohd.le ~no~:rioe:~:
.
an d mvestments
0 f these bank s stood at $435,566,000 on
January 4th, which reflects a decline of $2,401,000 as com.
pared to November 30, 1927, but a gain of $49,317,000 as
d
compare to a year ago. While the net demand deposits of
these banks showed a slight decline of $590,000 during
December, time deposits rose $1,152,000. As compared to
a year ago, demand deposits increased $33,675,000 and time
deposits showed a gain of $13,113,000, Their bills payable
and rediscounts with the Federal Reserve Bank amounted to
$3,350,000 on January 4.th as compared to $5,877,000 on
November 30, 1927, and $3,952,000 on January 5, 1927.
fr:'1 ••••• I ••• II.IIIIII.I.I.I.UI.I.I.I •••• I ••••••• III ••••••• 1••••••••••••• ' ••••• 1 ••••• • •••• 1••• 1••• 1••• 1 •• 1, 1,.,1111 1.1 • • • ,1.11111 • • •••••••••••••••••••••••••• 1••• , ••• 1 ................. 1 ••••••••••••••• 1 ••••••••••••••••••••••••••••••••••••••••••• 11111'11 1 I!)
::
CONDITION STATISTICS OF MEMBER BANKS IN SELEC'I1ED CITIES
::
1:-.:
.
~
~. ~~ng~~e~!ri~i!.or:~~ed~.~~~~:: : : =::;: .: :~: : : ~: :=:: : : : : ::=~:: : : =: : :=: : : =: :~:::: : :=: =: :~: : : : : J;n8~201",g:~ ~6",l~:~;6~: NO;'36~:~7~,~6~:~ 0~ 07~g
8: All other stocks, bonds and securItIes ow!led.:•...............................• ...•.•... _ ....... ..............
4. LoaTls secured by U . S. Government obhgatlons .......•...................................-; ....... -.._•........
6. Loans secured by stocks and bonds other tha n U. S. Government obllgations ........ _... ...
6. All other loans .. _..........··,·································.................... - ..............•......-.-.-.............................
7. Net dema nd deposits ............• ....•........•············_·······..... - .............• -..- ........ -..............................
§ ~: ~::rv:e!~~tsF·.;d~~~i···R;~~~~··ii~;:;k::::::::::::::::::::::::=:::::::::::::::::=:::::::~~::=:::::::~::::=:::::::::::::::
E 10. Bills payable and rediscounts with Federal Reserve Bank_..._...•........_...... _...................
:
11.
Ra tio of loans· to net demand deposits ........ _ ...........................................- ..•...•.-....- --...
.Loans include only items 4 and 6.
E
GJ,.. u II u .................................................It ......... " " II .. ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '.. 11.~ .............. III .. I1 ....... II .. IIIIIII ..
Savings
SavingsEldeposhitsD~f ?1 rehP.orthmg banks
Deposits
in the event
Istnct w lC operate a
savings department amounted to $131,156,713 on December 31, representing an increase of 1.6 per
cent over those on Nove:nber 30, and 11.6 per cent over
~
84,708,000
246,247,000
805,028,000
82,987,000
252,400,000
305,618,000
8,860,000
82%
6,877,000
88 %
li:::~::ggg
l~::::~:ggg
Jan.,
62~28': ~::8:4:~gO4g0 ~6
~
.---- :i.;
72,141,000
288,946,000 .:
271,853 ,000
19~:m:ggg §
I1 ...... IIII ....... II.II.IIII .... IIII ... I1 .. 11IIIIU ....... UU .................. III .... u
8,952,000 §
89 % :
~
................. G)
December 31, 1926. There were 273,110 accounts carried
h
ks
at 84 of t ese ban at the close of the month as compared
to 272,663 on November 30, and 253,234 on the correspond.
ing date a year ago.
MONTHLY BUSINESS REVIEW
6
m,llt.,II.,IIII • ••• 'II " ••••••••••• ' ••• II ••••• •• ••••• 1111"'11111111111,"'1""',11 1,.1""'.,"'11111.,11"" " '1111111"'11" 11 '1111""1"'111111111111111111111111' 11.,11111111111111111111,.,.", 11 11 11111"'1.111 •• ,111.1. 11 111111111 1 111",11111111 _
December 31, 1927
Number of Number of
Amount of
Reporting Savings
Savings
Banks
Depositors
Deposito
Beaumont ...................................
Dallas . •....___ ............... _........
EI Paso .....................................
Fort Worth ....... ........................
Galveston .................................. .
Houston ............... _................... .
San Antonio .............................
Shreveport .............................. .
Wa.o ...........................................
Wichita Falls ................... _.......
All others ...................................
§
4*
6
S
8
8
12·
6*
••
3
2
.5"
6.865
62.688
14,948
20.860
13.615
64.678
28.629
28.809
7,706
4.186
41.037
$
December 31. 1926
Number of Amount of
Savings
Savings
Depo8i~rs
Deposits
2.498.765
21.694.830
5.731.068
7.166.668
9.765.294
80.169,489
14.681.833
11.161.598
4.684.518
1.928.624
21.985.031
6.226
.8.440
14.969
19.418
18.117
67.146
18.898
28.401
7.398
6.324
88.912
$
Inc. or
Dec.
+
2.822.537
18.082.256
6.784.678
6.609.250
8.344.721
27.180.016
12.874.667
11.714.062
8.976.119
2.610.109
19.168.570
7.6
+ 19.4
.9
+27.7
+16.9
+ 11.2
+ 12.9
- 4.7
+16.6
-28.2
+14.7
November 80. 1927
Number of Amount of
Savings
SnvinlPl
Depositors
Depos its
6.277
$ 2.495.150
52.560
21 .688.486
~5.07 2
6.435.280
21.019
7.086.646
18,482
9.489.604
64.828
29.877.859
28. 718
14.010.705
28.911
11.213.086
7.648
4.829.216
4.285
2.084.685
40.478
21.625,330
Inc. or
Dec.
+ .1
+ .1
+ 5.4
+ 1.1
+
8.8
+
1.0
+ 8.7
-
.5
+ 7.1
- 6.2
+ 2.1
TotaL ...................................
91
278 .110
$181.156.713
253.284
$117 .610 ,765
+ 11.6
272.663
$129.029.897
+ 1.6
.Only 8 bank. in Beaumont. 11 banks in Homton. 6 banks in San Antonio. 8 bank. in' Shreveport a nd 42 bank. in "All Others" r.ported the
number of aavinlrB depositor •.
Gl ".......
I!)
'"111 ........... 11 .... 1111 ......... 11 ........... 1111111 .... 1111 .... ,11111 ... 11IIIIIIIIIIIIIIIIIIIIIIII I IIIIIIIIIIIII ,IIIII.IIIII I IIII.'''UIIIIII.IIIIII111'111111 11 111111111 .. '".11'1111 11. 11.,11'"""11111111,.11 • • 11.1111111111111 It II I ....
m
I!]
0.1111111 ... ,111111111111111111111.11111111 ....... 111111111111 .. 11111111111111111 ..... ""1.111111 ....... 11 .. 11111111 ••• , ... ,111 11 •••• 111111111111111 , 1,1,1 , ." , .1I111I1I1I ....... I . I III .. I.II ••• ,IIIIIIIIItIlIl ... U ••• ,I I III ••• ,IIIIIIU ..... .......... 11 1
D,,: b s
Rate chargea customers on prime commercial paper such
as is now eligible for rediscount under the Federal
Reserve Act
. . ......... _..........................................................
Rate charged on loans tel other banks. secured by bills
receivable ....................... _............................................................ .
Rate on loans secured by prime stock exchange or other
current collateral (not including loans placed in other
markets t hro ugh correspondent banks) :
(a) demand ........................................................ _.................. ..
(b) time ........ _.......... _ ... _...... _.............. ~ ...................... _.....
Rate cJn commodity paper scoured by warehouse receipts.
EI P nso
etc. .. .............. _........ - ................. _ ................................................-
Ho ,, ~t" n
San Antonio
I
Waco
8
6-7
6-6
6
5-6
5
5-6
61J.,
5-7
6-7
6-8
6-8
5-7
6-7
6-6
6-6
6-8
6·8
6-7
6-7
6-6
6
7-8
6-8
6-8
6-8
5-7
7-8
6-8
4-8
u-8
8
4-6
§ Rate on catUe loans ......._....... _........ _...... _ ............ __............ _..
F ort Worth
51J.,-7
ro
loans was due almost entirely to the liquidation of indebtedness of reserve city banks and at the close of the month total
borrowings were almost equally divided between the two
classes of banks. With the opening of the new year, however, loans again turned upward amounting to $3,914,875
on January 14, as compared to $5,623,593 on the corresponding date a year ago.
Due to the reduction of loans to member banks total bills
held declined from $25,] 98,170.80 on November 30, to
$23,688,566.91 on December 31, distributed as follows:
(.11 ........... 11 ....... 111111 ••• 1111 •• 11 ....... 11 ............. II 1111.11 ... 11.1111 11 11 •• 11,,11, •• 11111 11111111111111 It "1",1 IUII.IIII II ".111 . 1111 1111 11111111 II ......................... 11111111 .. 111111 . .... 11 ........ 1111 • • 1111 .... 1111. 11.11.11, '1 ,,11 .
Deposits of
Total deposits of member banks located
Member Banks
in the Eleventh Federal Reserve District
increased further during the four-week
period ending December 7th and were considerably greater
than a year ago. Amounting to $915,317,000 on December
7th, total deposits of these banks reflected an increase of
$8,174.,000 over those on November 9th and $121,423,000
over December 29, 1926. As compared to a month earlier,
net demand deposits increased $7,485,000 and time deposits
rose $689,000. While banks located in cities of less than
] 5,000 population reported an increase in deposits the
rna)' or portion of the increase in both demand and time
deposits occurred at banks in cities of over 15,000 population.
A""'"11,,,,,,,,,,,,,,,,,,,,,,.11. ""
II II II ....... " " " " " " " " " ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' II 1I1I .. 1I ........ I •• fll •• I [!)
Total
pemand
ec. 29. 1926 ....... _.......
26. 1927................
eb.
28. 1927................
F
M arch 28. 1927............
A pril 27. 1927 .............
M ay 25. 1927.........._.
J une 22, 1927..............
J uly 27. 1927 ... _ ........
A ug . 24, 1927................
S ept. 28. 1927..............
oct. 26. 1927 ................
N ov. 9. 1927................
D ec. 7. 1927 ..................
~an.
•
Banks in cities Banks in cities
Total with a popula- with a populatlon of less
tion of over
Time
than 15.000
16.000
Demand Time i>emand Time
--682.891 161.608
688.208
660.879
646.449
682.818
618.186
606.696
608.812
611.818
667.854
698.989
721.728
729.218
166.919
176.608
176.180
176.886
178.896
180.546
178.868
182.798
188.181
185.866
186.416
186.10'
281.721
282.876
290.886
278.998
272.254
266.858
268.818
261.809
266.790
808.977
822.579
888,679
88'.427
r---
41.290
48.791
44.869
46.021
46.624
47.618
48.119
47.666
48.848
49.028
49.887
48.482
'8.691
860.670
360.888
360.494
866.461
860.564
847.278
342.888
841.508
846.028
868.877
876.860
888.149
894 .786
120.218
128.128
181.684
180.109
129.212
181.277
182.426
130.702
184.460
184.1()8
185.479
136.988
•
_
187473
EI, ••• ,., •. "................................................................... ,••••.•••...••••••••.•••••.•..•••...•.•. m
Operation.s of
the Federal Reserve Bank
After showing considerable fluctuation
during the first three weeks of December,
loans to member banks during the remainder of the month reflected a downward trend in accordance with the usual year-end tendency
and on December 31, member bank borrowings had declined
to the lowest level reached since the pre-war period. Borrow·
ings of these banks amounted to only $877,792 on December
31, as compared to $6,783,963 on November 30, and $4.,772,409 on December 31, 1926. Although a further reduction occurred in loans to country banks the decline in total
Member banks eollateral notes aecured by United State. Government obligations ...................................................................... $ 609.600.00
Rediseount. and all other loans to member banks........................
268.2 92.88
Open market purchases (Banker.' A.ceptnnc(8) ......._................... 22.810.77 4.58
Total bill. held ................................................................................$28.688.666.91
A further decline was shown in
the net circulation of
Federal reserve notes during the month. On December 31,
Federal reserve notes in actual circulation amounted to
$47,4,72,380 as against $48,770,660 on November 30, and
$4,8,803,275 on the corresponding date a year ago. Reserve
deposits of member banks increased further, the daily average amounting to $69,020,390 in December representing an
increase of $1,351,969 over November and $8,244,032 over
the daily average in December, 1926.
FAILURES
The closing month of the year witnessed a further upward
trend in the business mortality rate of the Eleventh Federal
Reserve District, yet it was considerably below that for the
corresponding month of 1926. There were 96 failures during the month with total liabilities of $1,010,587 as com·
pared to 68 ·insolvencies in November with indebtedness
of $818,200 and 114 defaulting firms in December, 1926,
which owed $1,815,000. There were 822 failures during the
year of 1927 with an indebtedness of $14,,855,399 as compared to 884 defaults in 1926 with liabilities aggregating
812,113,434.. Following the decline in the price of cotton
in the fall of 1926, both the number of failures and the
amount of indebtedness increased rapidly and continued
heavy during the first six months of 1927. Since that time,
however, failures have been on a more moderate scale.
MONTHLY BUSINESS REVIEW
PETROLEUM
Despite the unfavorable weather conditions prevailing
during the latter part of the month, activities in the oil industry in December in the Eleventh District showed an increase ow'· those in the previous month and total production of crude oil was considerably higher. There were
21,84,6,100 barrels of crude oil produced in December as
compared to 20,209,350 barrels in November, representing
an increase of 1,636,750 barrels in total production and
31,068 barrels in the daily average output. Although the
number of producers was only slightly greater than in
November initial production was more than doubled. Of
553 completions, 268 were producers of oil and 62 were
gas wells as against 476 completions in November of which
236 were oil producers and 4,3 were gas wells. On the other
hand, initial production rose from 171,575 barrels in the
previous month to 382,4<78 barrels in December.
The daily average output of crude oil in Texas increased
33,292 barrels, total production amounting to 20,382,950
barrels in December as against 18,726,700 barrels in the
previous month. Field activities in Central-West Texas increased, and the completion of large producers in Howard,
Winkler, Crane, and Pecos counties boosted the total
yield of that area to a new high level~ A further model"
7
ate gain was reflected in the output of the Gulf Coast fields.
Stocks of crude petroleum in the Panhandle area at the close
of the month showed the effects of further withdrawals and
decreased production. A further decline was shown in the
output of oil in the North Louisiana district.
Production of crude oil in the Eleventh District in 1927
reached the record total of 246,44,0,665 barrels, as compared to 184,861,563 barrels in 1926 and 171,544,884 barrels in 1925. In only two months did the monthly output
fall below the twenty-million barrel level, a record unsur·
passed in previous years. However, weakened market conditions followed as a result of the heavy monthly yields
and widespread efforts to curtail production, particularly
in North Texas, were begun in the early fall. As a result
field activities declined in most areas of the district, how·
ever, this effect was offset by the steadily rising production and the large potential supply of oil in Central-West
Texas. Due in part to the adverse market, completions during the year declined and amounted to 7,263 of which 4,,106
were producers of oil, as compared to 9,4.66 completions
in 1926 of which 5,957 were oil producers. Despite this
decline, however, initial production for 1927 exceeded that
of the preceding year by 122,580 barrels emphasizing the
greater initial flow of new wells.
0.111111111111111 .. 11 .. 111111111111 .. 111111111 .. 1111 .. 111 ........ 1111 .. 11111 ....... 111 ................. I ........ I1II1II"'IIIIIUIlIl ........ IIIIIIII .... "" .. IIIIII .......... 1I1I1I11I1I .... IIIII .... IIII .... IIII ......... lIlIllIn ...... III ...... III ...
::
OIL PRODUCTION
N,,'" Tau ... _.... _.____ ,.:::~:-b~:::.~;, ,::::::·";l~f~:.;:; D~. "'''~.::.'' :~."' A'~.,,,
1_-----:;
:
§
~
'9
::
1,_---::
Central-West Texas .... _... _ .............................._ ... _
East-Central Texas._ _.............. _................. _...._..._.
Texas COastal...........................................................
Southwest Texas ................_......................................
9.925.450
840.750
8.885.700
775.850
820.176
27.122
128.782
25.027
8.174.600
848.350
3.674.100
778.600
272.486
28.278
122.470
25.958
Inc.
Dec.
Inc.
Dec.
1.750.850
7.600
161.600
2.750
Inc.
Dec.
Inc.
Dec.
47.690
1.156
1.262
926
Total. Texas ........................ _............_... _........ _
North Louislana .......... _...... _.............................. _......
20.882.950
1.463.150
657.515
47.198
18.726.700
1.482.650
624228
49;422
Inc.
Dec.
1656250
• 10;500
Ine
38.292
2.224 ::
l". . . . ,~~::. ~,i,:~:~: :.: : : :.: : : .: : : :.: : : :.::::~::::::::::
=
§
De~.
~~:~:,~:~~,~..,....,..'~~~.,~~~...........
~~:~,~,~:~~,~, ......... ,::~.,:,:~ ..... ~:~:,......,.. ,~:~~,~:,:~~...... ,~:~:...............~,~:~~,~,l
at the close of December were 14j per cent below normal as
...........
t:;;J ...... II .. IIIIII ...... UU .. IIIIIIIII ... III1U .... UII ... III.III1I1I1I1I1I1 .. 1I1I11I1I1I1I1I1I1111111111111111111111111 ~
§
§
g
-
~
CompleFieldtiona
North Texas .................... 150
ECenttraTI-Weat Texas .... 2~g
I~ ~~~~w;fldc~~:a..::::::::::::::::::
T~~ns <fo:~i
~~
.. :::::::::::: 88
::
g
g
DECEMBER DRILLING RESULTS
Producers
66
147
8~
2
Gaa
Wells
G
FallInitial
ures Production E
78
11.827:
6~
844,794 ~
~~
i~
:
84
Total Texas ............... _.. .496
North Louisiana ............ 57
2~~
~g
2~~
Dec. Totals. District...... 553
Nov. Totals. District...... 476
268
286
62
48
228
197
'24:2~~
~
_
8
I i
zae _:;
!8tm -__
~_
E_-
882.478
171.575::
""
11111111111111111111111111111111111111 ... 1111111111111111111111111111111111111111111111.1I .... U ....... IIIII .... IIIIII.l!.J
,.,.11.11 ... 11 ........ 11.11 .... ,1111111111111111111111111111111,111111111,11111111,.11111111111111111111.11,1111.11.,11.118
~: :
CRUDE OIL PRlCES
L:oI
J~~2iO,
compared to 8 per cent a month earlier. Unfilled orders
for lumber on the books of 4,3 mills amounted to 33,455,072
feet as against 43,825,056 feet recorded at 4,9 mills on
N
b 30
fii]1?~::.~III~~IIII
tl!l
J~~$·1/.7410·
... : ... I .. IIII .. IIII.II.IIII1I1I1 .. III1 ... II .... , .. III ........ 11 .UIlIIlIlIIl ..... UU ..........
~
i
DECEMBER PINE MILL STATISTICS
Number of r eporting mlll . ... _.................................
48
g~~~et~~~
...::::::::::::::::::::::::::::::::::::::::::::::::::::::::':::::::::::: jl.·i~i·.·m ~E:
U
niilled order •• Dcc"mber 81 ................................ 88.455.072
.................................................... 98.505.087
ece; er 81.. ................. .... _......................... 282.988.465
orma .toc S ............................ .............................. .. 269.470.717
Shipments below nOl'mal pl·oduction ............... ~ .... 28.406,076
ActUal production below normal
23 769 207
Order s below normal production:::::::::::::::::::.:::::::: 25:826;492
Stock. below normal.. ....................... _....................... 36.491.252
~orial Erodu~ion
N oc ,s'l
feet
feet
feet
feet
fcet-2So/'c
feet-26 Of
feet-28%
feet--14%
E::::_'
_: ~: §
5
mlllll'(IL~;;:b'~~lls~~~il~~lil~~'I'c~;I~ii~ld··b~··~h~··s~~~h~;~··lpi~~··A~;~~i'~ti~~)'I··,IID
Texas Coastal Grade .. A ...............................;.;................ $l ,20
_
§
NOl.tr5~m:r.C~~a~b~~~)~.. ~~.~.. ~.~~.~~.. ~~~~~.~~........
1.60
%.'10
Prices for January 10. 1927. not nvailable on a comparable basis.
81 .. ,.....
11111 ... 111 .... 1111111111 .... 1111 .. 11 •• 1111 .... 11,111,111 .... 111111 .. 11111111 .......... IIIIIIIIIIII ...........
§
::
£!)
(Oil Stntistics Compiled by "The Oil WeeklY." Hou.ton. Texas)
LUMBER
Production, shipments, and new orders for lu~ber at pine
mills in the Eleventh District, in accordance WIth the usual
year-end tendency, reflected a considerable decline in De·
cember as compared to the preceding month. Shipme~ts ~f
lumber declined from 87 per cent of normal p~oduchon In
November to 75 per cent in December; productIOn from 81
per cent of normal to 75 per cent; and new orders .received
which amounted to 72 per cent of normal productIon were
ten points less than in the previous month. Stocks on hand
BUILDING
The valuation of permits issued at principal cities in the
Eleventh District which amounted to $8,668,751 in December
reflected an increase of 10.5 per cent over the previous
month and were 11.6 per cent greater than in December,
1926. There were 1,898 permits granted during the month
as compared to 2,553 in November and 2,064 issued in the
Bame month last year.
.
During the first seven months of 1927 the valuation of
permits issued each month fell below that of the corresponding month of the previous year and at the close of July the
total volume for 1927 had declined to 23.7 per cent below
that for the same period of 1926. Since July, however, an
increase was shown each month over the same month of last
MONTHLY BUSINESS REVIEW
8
year, with the exception of October, but the margin of in·
crease was insufficient to offset the heavy declines in the
earlier months and at the close of December the total valua·
tion for 1927 was 14.2 per cent less than in 1926. There
were 30,835 permits issued with a valuation of $103,225,320
as against 32,605 in the previous year having a valuation of
8120,313,989. Seven cities showed increases over 1926 and
seven reported declines.
0111111111111" ......... IIII ........ III .. IIIII.IIIIIIIIIIIIIIIII ....... "UIlIlI ........ 1I1I ... II ... IIIIIIIIIII" .. ,. .... III .. IIIU ...... I .... IIIIII ........... ' ..... III ........... 111 ..................... 111111111 ..... 1111111111111 .... 11111111111111111
13
BUILDING PERMITS
December. 1927
No.
Amarillo .... - ....•.....Austin ._..............
~:;:0'C\,;i~ii:::::~
~il~aa~.··::::::::::::::::
Fort Worth ........•
Galveston ............ _
Houston
Port Arthur...........
San Antonio ........
Shreveport .__ ...... '
Waco ................... _
Wichita Falla .......
'lbtal ................
8
Valu....
tlon
46
84
$ 148,268
38,271
1:~
m:m
l:i
l~~:~:g
December, 1926
No.
228
13
Valu....
tlon
2~:
November, 1927
Dee,
$ 771,826
10,240
12r
285
8,891,744
239
1S8
172,485
173
804
l,92a,316
880
75
44,085
67
300
740,970
220
164
214,404
182
28
48,300
14
128
705,805
148
1,898 $8,668,751 2,064
Inc. or
- 80.8
+278.7
=
rit:~~g :i:~
8it:r:~"+ 6t~
977,468 +298.1
69,841 +H7.0
2,467,118 - 22.1
82,423 - 46.6
1,159,890 - 86.1
149,848 + 48.6
23,135 + 87.2
890,730 - 20.8
$7,765,748 + 11.6
No.
Valu....
tlon
88
81
$ 680,068
264,076
m:m
2:: m:m
1:~
278
208
488
100
411
209
27
71
2,553
Inc. or
1927
Dec.
-
78.2
84.9
No.
1,720
690
=
:::~ 2'm
=~~:~ 8,~:~
Twelve Months
1926
Valuation
$ 10,472,729
1,872,666
Inc. or
Dec.
No.
Valuation
2,944
476
$ 16,476,129 - ~6.' §
1,124,158 + 22.1 :
~:~~~:m 1,~~~
~:m:m 4,~~~
~:m:m +1~~:~ §
19~~:m"+ ~::g §
1,661,886 +184.2
8,758
17,112,090
8,858
17,022,466 +
248,689 - 29.2
2,606
2,977,788
8,005
8,218,041 2,226,863 - 13.6
5,870
27,826,475
5,637
28,511,810 79,912 - 44.9
1,408
1,789,056
1,896
l,326,5a5 +
987,486 - 21.0
8,901
18,902,961
8,830
14,468,527 216,628
.6
2,475
4,032,856
1,969
5,856,803 66,176 - 21.5
863
1,573,641
420
1,094,675 +
848,454 +102.6
961
4,056,858
1.906
10,008,923 $7,848,869
10.5 80,885 $108,225,320 32,605 $120,313,989 -
+
.5 §
7.S:
'.2 E
31.1 §
S.9:
24.7 §
43.8 E
69.5 E
14.2 ~
11111111.,11111'"11111111111111111111111111111 ...... 1111111111.11 .... "".1111111."" .... 1111 ....... 111111111" ....... 11/ ..................... 1111' .. 1111111111111111111111 .. "11 .... IIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIIII ............ UI.UIIU .... II ..
m
CEMENT
Although the activities of Portland cement mills in Texas of 13.3 per cent over shipments in December, 1926. Stocks
were on a smaller scale than in the preceding month, they on hand at the close of the month increased as a result of
were substantially greater than in December, 1926, Pro· excess production over shipments and were 61.5 per cent
duction was only 2.1 per cent less than in November but larger on December 31 than a month earlier, yet they were
was 35.6 per cent greater than in the corresponding month a 8.3 per cent less than on the same date last year. Pro ducyear ago, While shipments of cement fell 34.1 per cent tion and shipments of cement in 1927 exceeded those in 1926
below those in the previous month, they showed an increase by 13.1 per cent and 10.8 per cent, respectively.
;:·.~~~::. ::·:::~·~·::~. .~~~~~~::~~~f;~.;~~~?;. ;~~r.~.;;~~.~:~::=.:~;;~:. . . :~;~~.
Shipments from Texas mllla ................. _.
Stocks at end of month at Texas mills..
8 1111 ...
407,000
444,000
+18.3
- 8.8
648,000
252,000
-84.1
+61.5
5,665,000
:::_!
5,114,000
11111 ................... 11111111 .......... 11 .... 111111 ...... 111111 .. 111111 .......... 1111 ......... 111111111111111 ... 11 ..... 11111111111111 ..... 1111111 ............ 11111 .. 11111111I1I1I1 ......................... UIIl .. UIlIIlIIlIl ... IIIIIIIIIIIU ...
1il
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board as of January 25, 1928)
Industrial activity continued in December at II' relatively low level
and railroad distribution of commodities declined further, while the
general level of prices remained unchanged. Holiday trade at retail
stores was in somewhat larger volume than in the previous year.
PRODUCTION
Production of manufactures remained in practically the same volume in December as in November, while output of minerals, when
allowance is made for usual seasonal changes, showed a slight in·
crease. Activity in the textile, shoe, and tobacco industries was
reduced in December, while the output of steel, nonferrous metals and
petroleum increased. Production of automobiles continued in smll'll
volume during December, but increased considerably in January and '
within recent weeks there has been also a further increase in the
activity of steel mills. Building contract awards were slightly larger
in December than in November, but smaller than in December of the
two preceding ye8'fs. Total awards for the year 1927 in 37 Eastern
states as reported by the F. W. Dodge Corporation, were valued at
about $6,300,000,000 which is slightly less than the 1926 total of
$6,380,000,000. December awards for residential and commercial
buildings were larger than in December, 1926, while those for in·
dustrial buildings and public works were smaller. During the first
three weeks of Janu8'ry contract awards were in approximately the
same volume as during the corresponding weeks of last year.
earlier and stocks of dry goods and drugs were slightly larger, Freight
car loadings declined further in December and were in smaller volume
during that month /I'Ild the early part of January than at any time in
four years. The decrease in loadings occurred in practically all groups
of commodities.
PRICES
The Bureau of Labor Statistics index of wholesale commodity prices
remained practically unchanged in December and was at the end of
the year 8'bout 1 per cent lower th an a year ago. Prices of grains,
hide and leather products, non·ferrous metals, and rubber increased in
December, while prices of livestock, cotton, and lumber declined. In
the first three weeks of J a'nuary, t~ere were increases in prices of
iron and steel, grains and wool, while prices of cattle, hogs, and
cotton declined.
BANK CREDIT
At the reserve banks the seasonal demand for currency II'fter reach·
ing its peak on December 24, was followed by a return flow of money
from circulation, which amounted to about $440,000,000 between
December 24 and January 18. This decline in the demand for cur·
rency, which was approximately the same as II' year ago, was reo
flected in a decrease for the same period of about $360,000,000 in
bills and securities of the reserve banks. Loans and investments of
member banks in leading cities declined during the first half of
TRADE
January, but were still at 8' higher level than at any time last year.
The decline of about $200,000,000 between January 4 and January
Retail sales of department stores and mail order houses increased
18, reflected a decrease of about $280,000,000 in the volume of loans
slightly more" than is usual in December and were somewhat larger
than a year a'go. Inventories of merchandise carried by department on sec urities, offset in part by a considerable increase in the banks
stores were reduced in December and at the end of the 'year were
investment holdings. Call lo/l'll rates showed the usual seasonal de·
slightly smaller than at l.~le end of 1926. Wholesale trade in nine lead- _ cline, at the turn of the year but other money rates were slightly
ing lines continued smaller than in the corresponding month of last_ firmer. The rate on bankers' acceptances increased during the sec·
year. Stocks of groceries, shoes, .hardwa-re, and furniture carried by ond, week of January from 314 to 3% per cent and there wai so a
wholesale firnls were smaller at the end of December than a year
slight advance in rates on tiloe money in the open market.
' ~
1
@FedFRASER