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~""I"'I""'I"III""'I'I""""""""'I'I'I"" ..................... : IA."."." .. "........................................"I •••• ".I ............................ H ...... I § 4 '~I ............................................................. , ........ ~' ••••••••••• IIII ••• I •••• II •• II.II.I •• III ••• tll •• I.I •• ......... 1...... 11 ........ 1••••• ", ....................... 1.' ......................................................................... , ................... m ............................... 1"': MONTHLY BUSINESS REVIEW n I I OF THE I FEDERAL RESERVE BANK OF DALLAS II E c. C. WALSH, CHAS. C. HALL-W. J. EVANS, Chnirmlln nnd Federnl Reserve Agent I AssJstnnt Federnl Reserve Agents (Compiled January 15, 1930) ~ :: II ~ ~ :: ... 11 ................... 11111111.11.11111111111 ..................... 111 ........................ 1111 .... 11 ......... 111111 .. 11 ......... 1111 ......................................... 11 ........................ 11.1111 .... 1111 ........ 11 .... ' ..... 11.111111;: ~ ; ....................... 1111.11 ..... 11 ... 1111 ........ 111111 ......... '" ....................... 111 .......... 1111 .. 11 ....... 1111 ................ 1111.' ••• 11 .. 11 ............ 1111111111 ••••• 1111 ...................... 11 .. 1111111 ........ 11 .............. 1111 .... ;: Volume 14, No. 12 Dallas, Texas, February 1, 1930 This copy is released for publication in morninlf pnpers- January 31 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Foderal Roservo Dlstrlot Change from November Dcoomber ~ ~ Bank debltB to Individual aoceuntB (17 oltlos). . Department store Blllos.. ......... .... . . .... . Rosorve bank loana to momber banks at end oC month .. .. .. . .. .... .. .. . .. .... .. . .. .. .. . RoservebankrationtendoCmonth .... . .... . Building permit valuation at larger oenlers.... Commorolal failures (number)... ......... .... Commorolal falluros (lIubllltlos) . . . . . . . . . . . . . . Oil produotion (barrels) ...... .. .... .. ....... Lumber orders at pine mills (per oent oC normal produotlon) ...................... .. ...... 11.005,188,000 - 0.0% 38.7% 13.200,010 63 .0% 7,151.000 30 1,035,110 20.844.750 67 .0% + : + 0.2 points, + 34 . 7~ , + 5.4!'9 , + 130 .0!'9 , + 1.1'10 •• ' 70% + 11 .0 polntB ••••• , ••••••••••••••••••••••• , ••••••• I ••••• , •••••••• , ••• , ••• , ••••• , •••••• , ••••• , ............ 11 ••• ' ................... E ,8 Ordel'ly readjustments in finance, business, and industry were the outstanding developments in the Eleventh Federal Reserve District during December. Most notable among the readjustments was the one in financial quarters. Member bank borrowings at the Federal Reserve Bank, which during the current year reached the highest point since 1922, were reduced from $30,876,816 on November 30 to $13,290,916 on December 31. While there was a temporary increase after the turn of the year, Federal Reserve Bank loans had fallen to $12,943,005 on January 15, and on that date were $7,353,579 less than on the same date in 1929. The high level of these loans during the fall months which consisted principally of borrowings of reserve city banks resulted hom the cumulative effects of financial developments in Eastern markets. The easing of money rates in these centers, the increased demand for commercial paper and bankers' acceptances, and the improved bond market enabled these banks to rearrange their portfolios, to reduce their indebtedness at the Federal Reserve Bank and to place themselves in a position to meet the normal demands for credit during the coming year. It must be borne in mind, however, that member bank deposits reflected a further slight decline in December and were considerably smaller than a year ago. Since early fall it has been increasingly apparent that the district's agricultural income would be materially lower than in either of the two preceding years due to the smaller volume of production but the situation was accentuated by the gradually declining price of the district's principal com· modity-cotton. The immediate effect of these factors was seen in the reduced consumer demand which in turn had a reflex action upon distribution at wholesaie. The retailers in rural sections have directed their attention to the disposal of excess merchandise with the result Lhat new purchases at wholesale have represented nearby requirements. Furthermore, reports indicate that this policy is being adhered to more closely at present than for some time past, which will tend to maintain the soundness of business. Consumers, due to the smaller income, are restricting purchases more largely to necessities rather than showing a preference for luxury goods. On the other hand, retail buying in larger cities, as measured by department store sales, remained at a high level throughout the period even though the volume in December was considerably below that for the same month of 1928. Despite the fact that the · readjustment period coincided with the period of financial strain incident to year-end settlements, commercial failures reflected an increase which was smaller than usual at this season. During the last four months of the year both the number of defaults and the volume of indebtedness involved were materially below those for any corresponding period in ten years. There was a further curtailment of production in the district's industries to prevent the accumulation of stocks and to make possible a better alignment between demand and output. The volume of construction activity, as evi· denced by the valuation of building permits issued at principal cities, was larger than in November but was considerably below December last year. BUSINESS Wh.olesale Trade A recession in the distribution of mer· chandise in wholesale channels which was more than seasonal in character was in evidence during the closing month of 1929. Sales in all reporting lines were smaller than in the corresponding month of 1928 and farm implements was the only line to show a larger volume than in the previous month. This year-end decline apparently represented the culmination of the irregularity which has characterized trade at wholesale throughout the year 1929. There was a broad demand for merchandise during the opening months of the year due to the spirit of optimism engendered by the generally satisfac- This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHL Y BUSINESS REVIEW 2 tory returns from crops in 1928 but this period was followed by considerable fluctuations in the volume of distribution reflecting largely the varying prospects of agricultural production. While restricted buying in rural sections was evident to some extent early in the fall, it was most pronounced in November and December when the full effect of the reduced agricultural income, together with the hesitation resulting from the Eastern financial disturbances, manifested itself. While these factors were largely responsible for the year-end decline, it was accentuated by the desire of merchants to close the year with small inventories and to make the necessary readjustments in business to meet the conditions created by the materially smaller returns from the di strict's principal commodities. For the fourth consecutive month the sales of dry goods at wholesale showed a decline as compared to both the previous month and the same month last year. While the small demand may be attributable in part to the in-betweenseason dullness, the hesitation in purchases of cotton goods on account of the declining price of raw cotton, the desire of retailers to clean their shelves of excess merchandise, and the close adherence to the policy of hand-to-mouth buying were important factors. Collections during the month were generally slow. The distribution of farm implements reflected an increase of 15.2 per cent as compared to the previous month but was 6.6 per cent less than in the corresponding month last year. Sales during tne last half of 1929 averaged 19.3 per cent larger than during the same period of the previous year. Reports indicate that the demand is poor from those sections most adversely affected by the reduction in agricultural income. Prices remained generally steady. The sales of reporting wholesale drug firms declined 6.0 per cent as compared to November and were ].4..9 per cent less than in the closing month of 1928. While distribution during the last half of the year averaged slightly smaller than in the same period of the previous year, the decline was insufficient to offset the favorable showing during the first half of the year. The demand in most sections reflected a noticeable recession during the past two months but there are some localities in which it continued on a satisfactory scale. Collections generally were fairly well sustained. A further sharp recession of 17.4. per cent in the sales of reporting wholesale grocery firms as compared to the preyjous month and a decline of 2.8 per cent from a year ago was in evidence during December. Business, however, was somewhat spotty as the demand was good in some sections but poor in others. Collections generally were slow. A general recession in the demand for hardware was in evidence during December. Sales of reporting finns were 22.2 per cent less than in November and 6.5 per cent below those of a year ago. Sales during the year, however, averaged somewhat higher than those during 1928. Prices showed no material changes. Collections from most sections were slow. 01111111111111111111.1., ••••• 111111.11111111111111111111111111'111",111'.,. ,111"'11 11111"'111.111111111111 111111'II.r,~ CONDITION OF WHOLESALE TRADE DURING DECEMBER. 1920 Percentage cC Increase or Decrease in: Groceries ........ Drygoods ....... Farm implements. Hardware ....... Drugs ........... Net Sales Net Sales Stocks Ratio oC collecDecember. 1029 July 1 to date Deo .• 1029 tions during Deo. compared with compared with compared with to accounts and Dec. Nov. snme period Dec. Nov. notes outstanding 1928 1029 last yenr 1928 1929 on November 30 - 2.8 - 17.4 - 1.6 0.0 - 0.3 72.4 - 15.0 -19.3 - 0. 1 - 13.2 - 9.4 34.2 - 6.0 + 15 .2 +19 .3 +41.3 .2 10.9 - 6.5 - 22 .2 + 4.4 - 2.0 - 2.9 38 .8 -14 .9 - 0.0 - 1.7 + 12 .8 - 7.2 43.4 : ~ [!]I'UIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1I1111111111111111111111111111111111.ffi The sales of department stores in the larger centers of the Eleventh Federal Reserve District reflected a further seasonal increase of 38.7 per cent as compared to the previous month but were 4.9 per cent less than in the closing month of 1928. While business was generally satisfactory, the demand from consumers in certain quarters was curtailed as a result of the recent economic changes and the more than usual uncertainty regarding future developments. Sales for the year were 0.4 per cent smaner than in the previ(])us year. Retail Trade Stocks on hand at the close of DecembeF were 21.1 per cent lower than on November 30 but were 2.4 per cent greater than at the close of December, 1928. The rate of stock turnover during 1929 was 3.19 as compared to 3.13 in the previous year. Collections reflected a decline during the month. The ratio of December collections to accounts outstanding on December 1 was 36.1 per cent as compared to 38.8 per cent in November and 37.3 per cent in December last year. (!)"IIIIIIIIIIIIIIIIIIIICItIlIIlUIIUIIIIIIU.1I1111111111111111111111111111111111111111111111 .. 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111.11111111111111111111111111111111111111.IIIIII ... IIIIII.[!) BUSINESS OF DEPARTMENT Sl10ItES Total Sales (Percentage) December. 1020. compared with December. 1028 ............. .... . . .. . . .. . ... . .. . December. 1029. compared with November. 1020. ......... ....................... January 1 to date compnred witb same period lastycar .......... . .. .. ... ....... .. Credit Sales (Percentage): December. 1929. compared with December. 1928 .......... ... ........... . . . . .... . December. 1929. compared with November. 1929 .... . ...... . ... . . . . .. .. .. . . .. .... January 1 to date compared with same period last ycar. . . . . .. . . . . . . . . . . . . . .. . . . . . Stocks (Percentage): December. 1929. compared with December. 1928 ..... .. . . .. ... . .. ......... . ...... December. 1929. compared with November. 1929 ..... . . ..... . . .. . . . . .. .. . ... . . . . . Stock Turnover (Rate): Rate oCstock turnover in December. 1928 ....................................... Rate oC stock turnover in December. 1929 ....................................... Rate oC stock turnover January I to December 31. 1928 ........................ ... RateoCstockturnoverJanuary I to December 31. 1929 ........................... Ratio oCDecember collections to accounts receivable and outstanding December I. 1929 .. Dallas -.2 +36 .3 + 4.3 Fort Worth - 8.8 +43.6 - 3.1 Houston - 6.0 +38.8 - 2.2 San Antonio - 3.0 +36 .6 - 3 .2 + 4.2 +28 .9 + 7. 1 + .5 +32. 7 +10 .0 + .3 +25 .8 + 1.0 + .2 +38 .1 .8 + 1.2 +44.4 + 2.9 +11.6 - 16.4 - 29.0 + 1.7 .3 -20.6 + 1.7 - 20.1 - 6.1 -21.5 -21.1 .47 .45 3.24 3.33 33 .S .44 .41 2.69 2.67 34.6 .49 .46 3.31 3.39 38 .7 .52 .51 3.50 3.71 40 .2 .39 .39 2.93 2.94 38.5 .44 .42 3.13 3.19 36.1 + Others - 6.7 +39 . 8 - 1.1 Total District - 4.0 +38 .7 -.4 + 1.8 +32 .1 + 4.5 + 2.4 IEIIIIIIIIIIII" 111111111111111111111111111111111111111 111111111111111111111111111111111" 11111.1111111111111111111 t 111111111111111111.1.,.11111111111111111111111111 1111111111111111111.111111111111111111111111111111111111111111111111111111111111 J 11111 ' Cornmercial The business mortality rate in the Eleventh Federal Reserve District increased in December, as usuaUy occurs at the year-end, and the indebtedness involved was greater than in the same month of 1927 or 1928. The number of firms involved, however, was fewer than in the correspondFailures (!J ing period of the past three years which indicates that defaults in the current month included some of the larger enterprises. There were 39 failures during the month as compared to 37 in November and 52 in the same period last year while the indebtedness in December amounted to $1,- MONTHLY BUSINESS REVIEW 035,110 as against $4,37,535 in November, and $839,808 in the closing month of 1928, The commercial failure record was decidedly more favorable in the Eleventh District in 1929 than in recent years. 3 The liabilities of defaulting firms, amounting to $9,661,808, were the lowest of any previous year since 1924 and the number of failures, which was 525, was fewer than since 1920. AGRICULTURE The rains and snows during the past these figures the hypothetical value of all crops in Texas month were beneficial to growing crops for ] 929 amounted to $615,351,000 as compared to $754,,and in most sections of the District have left a good surface 359,000 in 1928. From the table it will be observed that and subsoil season in the ground. There are some portions wheat, oats, barley, and hay crops were the only ones in in West Texas, however, where the lack of moisture is re- which there was an increase in both quantity and value. tarding the germination and growth of winter wheat. While The small grain crops fared well during 1929 due to the farmers in most sections have made fair progress with field favorable growing conditions during the winter and spring work and winter plowing, this work in some sections has and timely rains in the late spring which insured proper maturity. The production of wheat, which totaled 37,800,000 been retarded by cold weather and wet soil. The fa ll sown grains generally have done well but re- bushels, was only slightly below the record crop of 1919. ports from some localities indicate that the hard freezes The decline in the production of grain sorghums, sweet during the latter part of December and the first half of potatoes, peanuts, and, to some extent, corn was brought January have damaged onts to a considerable extent. Wheat about by the dry weather during the critical part of the and oats in parts of West Texas have made poor to only growing season. The lower output of rice and potatoes refair progress on account of the dry weather. The Depart- sulted entirely fr om the lleduced acreage but in each instance ment of Agriculture estimated that the acreage sown to the value of the crop was greater than in the previous year winter wheat in Texas in the fall of 1929 totaled 2,927,000 as the higher price more than offset the smaller production. acres, which represents an increase of 8 per cent over that The major portion of the decl'ine in the value of Texas sown in the fa ll of 1928. The fall seeding of wheat in New Mexico was 5 per cent larger and that in Arizona was 10 crops was accounted for in the receipts from the cotton per cent above that in the previous fal l. The rye acreage in crop. The estimated production of 3,950,000 bales represents a decline of ],156,000 bales in lotal production as Texas was increased 5 per cent. The low temperatures with sleet and snow, followed by compared to 1928 despite the increase in ncren ge, (IS lhe frost, did considerable damage to truck crops in the Rio yield per acre dropped to 106 pounds in 1929 f rom 138 Grande Valley. Most of the tender vegetables were killed pounds in the previous year. Not only is the actual producand other vegetables received a setback. This caused a slow- tion the smallest since 1922 but the price has. been lower ing down in shipments during the last week in December than at any time since the middle of 1927. The difference but fruits and vegetables were again moving in heavy vol- between the farm price on December 1, 1929, and on that ume toward the middle of January. According to the Federal date in 1928, together with the smaller yield accounts for State Market News Service, shipments of fr uits and vegeta- $125,4.13,000 drop in the value of the lint. bles for the season to January 11, 1930, totaled 6,771 cars The severe decline in the value of Texas crops, attributas compared to 4~087 cars during the same period of the able so largely to cotton, emphasizes the need for greater previous season. The appended table shows the estimates crop diversification which is gradually gaining headway in Value of Texas given out by the Department of Agricul- some portions of the State. The extension of diversification ero ps declined in 1929 ture on the yield and value (based on has come largely through the dairy and poultry industries December 1 farm price) of the principal which are enabling farmers in many localities to obtain an crops in Texas for the years 1928 and 1929. According to income more evenly distributed throughout the year. Crop Conditions GI.,.,.,I ....,I • • • • ,II • • • , II ••• • ••• , ., I • • ••• • , I I I I •••• • ••• • • • • • • • ••• 11. 1. 11., 1.' •• • ' •••• • • • • • • ••• ••• 1••• 1• • 11" """, .1", •••••• 1 •• 11.111 ., 1, 11"",,' . 1. 1""" "1.1.1111 ., 1 • • , 1. 11. 11111.1.11. 1 • • •• 1•• • ••• • • 1 • ••• • 11111•• •• IIIIII II I II III I II' I"., •• i"'0 COMPARATIVE PRODUOTION AND VALUE OF TEXAS FARM PRODUCTS AS COMPILED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE VALUE Bnsod on December 1 Farm Prloe QUANTITY Commodity 1929 Cotton . ... . . . ... . . .. .. ... , . .. . . ... Corn .. .. . .. ...... ....... .. ...... . . Whoal . . . .. .... .. .. ... . . .. . .. . .. . . Oata . .. . ..... . . ... ........ . . ..... . Barloy ........ .. ... .... ........... Grain sorghums . . .... . . . .... .. .. , .. Rico. ' " ..... . ..... . .. ... ...... ... Hay (tame Bnd wild) . . . . , . . . ..... .. Broom corn .. . . . . ...... . .. .... ... . . Potatoes ~whltel ' . . .. . ...... ....... Potatoes sweot ... ..... , .. .. ... .. . Pennuta . ........ . .. .. .. .. ... .. . . . . 1928 3,950,000 bales 86,127,000 buebole 37,800,000 busbols 47,096,000 bushols 5,075,000 bushels 40,921,000 bushels 7,524,000 busbols 090,000 tons 1,200 tons 2,393,000 bushels 7,384,000 bushols 71,050,000 pounds 5,100,000 bales 99,162,000 bushols 22,176,000 bushols 35,751,000 bushols 3,276,000 bushols 00,000,000 bushels 8,096,000 bushols 941,000 tons 1,400 tons 2,600,000 bushels 8,284,000 bushols 81,900,000 pounds 1929 Inoreaso or Deorcnae in Quantity - 1,150,000 bales -13,035,000 bushols +15,624,000 bushols +11,345,000 bushols + 1,799,000 bushols -22,079,000 bushols 572,000 bushels + 40,000 tons 200 tons 207,000 bushols 900,000 hushels -10,850,000 pounds - Total value of twolve crops . ... . .... . . ... . ......... Hypothotioal valuo of nil crope .. .. . . . . .. . . . . . ...... The condition of ranges in the Eleventh District during the past month reflected the usual seasonal decline but conditions in Southeastern Inoreaso or Decronso in Value $303,044,000 73,208,000 39,690,000 24,020,000 3,146,000 32,844,000 7,298,000 12,042,000 134,000 3,500,000 7,753,000 2,620,000 $428,457,000 77,346,000 24,394,000 18,233,000 2,301,000 41,400,000 7,134,000 11,881,000 150,000 2,000,000 8,284,000 3,112,000 - $125,413,000 - 4,138,000 + 15,296,000 + 5,787,000 765,000 + 8,566,000 + 104,000 + 701,000 16,000 000,000 + 531,000 483,000 - $509,908,000 $015,351,000 $025,472,000 $754,350,000 -S115,474,OU O - $130,008,000 tEi .. UIlIl .. .... III1 .. ............ . ...... ... ........... .. ... . .. uu .................................................... .............. .. 111 11 1.......... 1.. .... ....... . 1.1 .. .... " Livestock 1928 - . ...... "1" .. .. .. ......... .... ...... .. ...... .. 1111 ...... ... . .. 11111 1.. . . . 1 0 Arizona and the Southern half of New Mexico are considerably better than a year ago. Range feed in these areas is reported to be plentiful and the recent snows have insured MONTHLY BUSINESS REVIEW 4 an ample supply of stock water. In Texas, while the rains and snows were beneficial to ranges and left an ample supply of moisture in the soil, the cold weather during Decem· ber and the first half of January held back the growth of range vegetation and as old range feed was short in certain areas, some feeding was necessary. Clear and warmer weather is needed in most areas to permit the growth of range vegetation. While cattle suffered some shrinkage during the cold waves, they have remained in good flesh generally and losses were light. The Department of Agriculture reported that the condition of cattle in Texas on January 1, 1930, was 82 per cent of normal as compared to 81 per cent on December 1, 1929, and 86 per cent on January 1, 1929. The condition of cattle in New Mexico and Arizona was reported slightly lower than a month earlier but considerably above that of a year ago. The condition of sheep declined during December in all three states. While the December receipts of cattle, Movements and Prices calves, and sheep at the Fort Worth market were on a considerably smaller scale than in November, they were larger than in December, 1928. The arrivals of hogs showed a substantial gain over the previous month but were less than a year ago. The cattle market followed an uneven course during the past six weeks but there has been a firmer undertone with quotations slightly higher at the middle of January than at the end of November. The most noticeable showing of strength was in the calf division where a broad demand developed during the second week in January. While the hog market was irregular at times, slightly higher prices prevailed toward the middle of January than six weeks earlier. The sheep and lamb trade was fair to good at most times with prices working to a higher level. IDIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIIIIIIIIII.11111.1""1'1"1.11111'1""""1111111111111111111111 •• III ••• : § ~ (Number) I Def~~ber : Cattle ...... . .... § Calves... . ... . .. Hogs . . . . . . .. . . . § Sheep. . . . . . . . . . . 58,465 28.160 26,201 25.504 _m : § ~ FORT WORTH LIVESTOCK RECEIPTS De~~raber Cba~~~ver N°r8~ber Ch~g~t~ver §.~ 65,085 23.432 20.234 18.105 ~IU'llllll1tlllltlltl"llIltllflll'''lltltll''II''''''II''I +3,380 +4.728 - 2,043 +7.330 73.204 48.805 21.073 31.465 -14.730 -20.645 + 5,218 - 5,061 : ". § .. tI''''1I1I1I11I11I .... III .. IIIIIIIIII ... III ... II .... Ultla@ COMPARATIVE TOP LIVESTOCK PRICES (Dollars Per Hundred Weight) Def~2lJber Def~28ber Norg~ber Beef .teer. . .. . . ..... ... . . ..... .. ... .. .. . $14 .00 $13 .00 $13 .00 ~~o\e:/;~~.s: ::::: : : : : : : : : : ::: : : : : :: : : :: I~:~~ I~ : ~~ ~ : ~g I~ : ~~ 1~:~~ ~:~ It~ 13 .00 14 .00 12 .75 ~~~~~~~~.s: : ::: : : : : :: : : ::: : : : : : :::: : ::: sLIlhaoe~~: '.· '.·'.·.::. '.· '.· . .. . .. :.......... :. :.... ..... . . :. .. .... .. . ...::. .... . m ~1 be I~:~~ n~ .. I I I I I U l l l l l l l l l l l l l l l l l l l l l l l l l l l t l l l l l l l .. IIII .... IIII .... IIIIIIIII .. II .. IIIIIIII .. II .. .... 111 ... 11111 ........... 9 FINANCIAL o A sharp reduction occurred in loans to member banks in the Eleventh Federal Reserve District in December, the total receding from $30,876,816 on November 30 to $13,290,916 on December 31. On the latter date, however, total borrowings of member banks were $2,129,471 above those at the close of the previous year. While loans to banks in rural sections showed a fairly steady decline throughout the month, most of the reduction in member bank indebtedness at the Federal Reserve Bank occurred during the first half of December when increased deposits at reserve city banks enabled them to retire their lines at a rapid rate. Loans to member banks increased after the turn of the year but at a slower rate than a year ago and subsequently declined to $12,943,005 on January 15, which was $7,353,579 less than on the same date in 1929. Borrowings of country banks were further reduced during the first half of January while those of banks in reserve cities after fluctuating somewhat were at about the same level as on December 31. There were 59 banks borrowing from the Federal Reserve Bank at the close of the year as compared to 96 on November 30, and 35 on December 31, 1928. Due to a decline in both loans to member banks and open market purchases, total bills held receded from $41,466,334.96 on November 30 to $22,499,979.02 on December 31, distributed as follows: peraJions of the Federal Reserve Bank Member banks' collateral notes secured by United States Government oblilrations _._._._ __ ________.._ $ 8.268.600.00 Rediscounts and other all loans to member banks ..._....... __... _.. 10.027.416.84 Open market purchases (Bankers' acccptancesl _ .._ . _._... 9.209.068.18 Total bills held- .•.- ..---.-...- .- - - - .-_.... ____.._.... ___ .22.499.979.02 The net circulation of Federal reserve notes declined from $50,129,320 on November 30 to $4,6,94.7,290 on December 31, being $1,637,550 less on the latter date than they were a year previous. The daily average reserve de- posits of member banks amounted to $64.,4.11,506 in December as compared to $65,166,040 in November and $72,170,760 in the corresponding month of 1928. A growth in loans on securities and a further decline in commercial loans were shown in reports from member banks located in principal cities of the Eleventh District in December. The reduction in commercial loans more than offset the increase in loans on securities which, together with a decline in investments, lowered the volume of member bank credit in use by $8,232,000. Reflecting a liquidation in loans for productive purposes and to some extent a shift in borrowing from banks to the open market, all other loans (largely com· mercial) declined from $269,183,000 on December 4, t'1 $257,044,000 on January 8. During the same period loans on securities rose from $104.,177,000 to $113,194,,000. Investments of these banks in United States securities amounted to $63,828,000, representing a decline of $3,754.,000 duro ing the five-week period and their holdings in other stocks and bonds which aggregated $40,4.00,000 on January 8, were reduced $1,356,000. Total roans and investments amounted to $4.74.,4,66,000 as compared to $482,698,000 on December 4. and $495,4.24,000 on January 9, 1929. The net demand deposits of these banks, after showing a large increase during the first two weeks of the month, turned downward and stood at $291,022,000 on January 8. The latter figure, however, was $4,541,000 greater than that on December 4. Time deposits dropped $1,722,000 during the period. The reduction in the bills payable and rediscounts of these banks at the Federal Reserve Bank from $24,286,000 on December 4. to $11,936,000 on January 8 was made possible as a result of the higher level of deposits and a falling off in loans and investments. Condition of Member Banks in Selected Cities MONTHL Y BUSINESS REVIEW 5 for the month was $1,005,183,000 as compared to $1,011,487,000 in the previous month and $1,091,4,90,000 in December last year. ~_ _ Number of reportin~ banks .. . .. . ... . .... . United States seourlties owned . . . . . . . . . . . . . ~ § : _ E E E : AI~~~I~a~ .s~~~k~,. ~.o.n.ds:. ~~~. ~~.u.r.iti~. . . . . Loans on securities... . .. .. . .. . .. ... ... .. . All other loans .. . . . . . . . . . . . . . . . . . . . . . . . . . Total loans .. .. .. .. .. .. .. .. .. .. .. .. .. .. . Net demand depoeits . . . . . . . . . . . . . . . . . . . . . Time deposits .. .. .. .. .. .. .. .. .. .. .. .. .. . Reserve with Fedoral Reserve Bank. . . . . . . . : : BI~ed~~l'W~ere~~a~~.I~~~~~~. . ~i~h.... . 8· ........ January 8, December 8, January 0, 103030 1929 1920 40 43 63,828 $ 67,582 $ 04, 105 40,400 113,104 257,044 370,238 291,022 135,880 33,333 41,766 104,177 260,183 373,360 286,481 137,611 32,427 40,310 115,000 246,000 361,000 322,002 140,360 37,304 11,036 24,286 16,300 ~: DEBITS TO INDIVIDUAL ACCOUNTS (In Thousands of Dollars) ~ § :_ E E E Abilene ... .... .. Austin ..... . ... . Deaumont . .... . . Corsioana ..... . . Dallas . . . ..... . . EI Paso . ....... . Fort Worth .. . .. . Galveston .. .... . Rouston .. .. .... . Port Arthur . . .. . Roswell . ..... . . . San Antonio .... . Shreveport ..... . Texarkana - ..... . Tucson .. ... . . . . . Waoo . . . ...... . . Wiohita Falls .. . . : : :: 1111111111111111111111111111 ............ 1111 .......... 1111111111111 ... 111111111111111111I11111111111111111111B The combined daily average of net demand and time deposits of member banks in the Eleventh Federal Reserve District declined from $891,591,000 in November to $883,950,000 in December. The daily average of net demand deposits amounting to $663,839,000 showed a decline of $4,,979,000 from the previous month and that of time deposits aggregating $220,111,000 reflected a reduction of $2,662,000. Actual dep.osits of these banks on December 12, 1928, totaled 8974,968,000. Deposits of Member Banks e ..... Peroentage Peroentage Deoember ohange over November ohange over Month 1929 1028 Year 10,342 14,102 -25.4 1.8 24,343 - 9.0 21,792 +1.7 28,632 .6 29,587 - 3.0 6,711 +29 .2 7,664 +13 .2 283,386 207,046 3.6 - 1.4 44,068 42,860 + 4.0 6.8 120,625 141,205 -13 . 1 +1.7 41,896 - 3.8 51,446 -21.6 223,169 - 8.2 230,800 - 14 .6 10,308 12,749 .1 +23 .8 -12.7 0,314 6,183 -10 .0 87,0~5 04,567 + .2 - 7.8 45,168 40,056 - .7 9.9 17,004 -18.4 16,115 - 0.3 12,660 13,102 2.2 - 2.7 -10 .6 20,~84 21,612 -14.8 27,840 - 2.6 31,366 -13 .6 + + + + + + Total. ... . $ 1,005,183 1 1,091,400 - .n 1 1,011,487 - 7.0 -Inoludes the figures of two banks in Texarkana, Arkansas, located in the Eighth District. ~"'IIIIIIIIII'ItIlIlIl""""IIIIIIII""""IIIIIII"""II""'"''I''''''''''''IIII''''' .......................... (!J Acce ptclnoo Acceptances executed by accepting banks in the Eleventh District that were outstanding on December 31 amounted to $11,04,0,545, which was $2,072,595 below the volume a month previous but $2,886,934, greater than at the close of 1928. The amount of acceptances based on import and export transactions was $2,991,355 on December 31 as compared to $3,510,544 on November 30 and those executed against the domestic shipment and storage of goods totaled $8,049,190 on the former date as compared to $9,602,596 on the latter date. Savings Savings deposits of 87 banks located in Deposits the Eleventh District that operate a savings department, amounted to $149,545, .. 691 on December 31, which was 0.6 per cent less than on November 30 but 1.2 per cent greater than a year ago. There were 310,897 savings accounts carried at 81 of these banks at the end of the year as compared to 310,629 a month previous and 284,063 on December 31, 1928. IIIIIIIIIIIIII.I.III •• II.I ......... III .............. 11.1 ..... 1111111'111'1.111111111 •• ,1'1 •• 1111.111111 •• 1.,11IIIID Market DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In Thousands of Dellars) Jan., Feb., Mar., April, May, June, July, Aug., Sopt., Oot., Nov., Deo., December 1929 $ 10,525 22,153 28,447 8,673 203,M3 45,760 122,700 40,324 204,887 12,759 5,510 87,186 40,618 14,618 12,833 18,416 27,113 Combined Total Reservo City Banks Country Danks Net domand Time Net demand Time Net demand Time deposits deposits doposits deposits doposlts deposits 1020 ... ... 5745,100 5225,788 1290,004 5132,008 1446,105 1 02,880 1029. ..... 733,001 227,350 201,079 130,680 441,022 06,670 1020 ... ... 718,066 230,065 202,149 132,087 425,017 07,078 1020 .. .. . . 603,137 231,507 287,081 135,064 405,150 06,443 1020 ...... 673,007 230,701 280,204 133,018 302,813 07,773 1020 . ..... 643,638 226,110 260,317 129,412 382,721 06,698 1020.. .. .. 640,034 230,834 270,274 138,357 360,760 92,477 1020.... . . 620,000 230,643 260,019 137,174 360,800 03,460 1020. .... . 658,520 234,116 266,706 136,950 301,725 07,166 1020 ... ... 674,587 225,673 282,630 134,108 301,057 01,475 1920 . . .... 668,818 222,773 281,609 132,235 387,209 00,538 1020 .. .. . . 663,830 220,111 270,611 131,870 384,228 88,232 81111.1.1 ..... 11111.111111111111111111111111111111111111111111111111111.111111111111111111111111111 ... 111111111111111.18 Debits to Individual The volume of debits to individual accounts at banks located in principal cities Accounts of the Eleventh District declined 0.6 per cent in December from November and was 7.9 per cent less than in December, 1928. The aggregate SA VINGS DEPOSITS Deaumont ................ . Dallas.... .. .. ......... ... EI Paso ...... .. . . . . ... ,. . . Fort Worth.. . . .... . ... . ... Galveston .. .. .. .... .. .. .. . Rouston .... . . . . . . .... ... .. Port Arthur .. .. .. ..... . ... SSahn Antonio ..... . . .... . . .. reveport .. ........... .. . Waco .. . ... .. . .. . . . . . . . .. . VAI/lilohilta Falls ....... ... . .. . ot lers... .... . .. . ..... . Number of Reperting Danks 44 2 3 3 123 47: 4 2 30_ Deeember 31, 1029 Number of Amount of Depositors Deposits 5,651 S 2,472,328 60,041 25,264,763 15,012 6,322,100 23,477 7,612,010 13,633 8,128,276 72,987 34,042,148 6,141 1,722,836 320'38671 22,737,070 I, 0 11,310,800 10,033 7,166,018 393'068579 21,62188,161 , 1 , 4 ,164 December 31, 1928 Number of Amount of Deposit<lrs Deposita 5,532 S 2,601,433 50,177 24,706,182 14,680 6,292,617 21,067 7,600,164 13,902 9,063,263 71,971 33,026,498 4,639 1,901,006 22,023 20,745,326 21,100 12,062,301 9,774 6,001,465 4,150 1,617,909 34,348 19,448,572 Percontage Change Over Year in Savings Deposita - 5.0 2.3 + .6 + 1.5 - 18 .4 + .3 - 9.4 + 0.6 - 6.2 + 2.5 - 6.2 + 0.3 + November ao, 1920 Number of Amount of Depositors Deposita 5,688 S 2,494,127 71,053 25,257,051 15,823 6,226,106 22,702 8,886,083 13,656 8,223,176 71,003 33,889,800 5,108 1,711,825 30,046 22,291,773 21,602 11,306,380 0,088 6,066,816 3,680 1,550,603 38,400 21,637,621 PeOr?e.nrtaRoOnCthhalnOge • M Savings Deposita .0 0.0 + 1.6 - 14 .3 - 1.2 + .4 + .6 + 2.0 0 0 + 2.0 - 21 ' 81 -. Totai.. .. . ...... 87 310,807 $149,545,691 284,063 1147,760,765 + 1.2 310,020 5160,441,306 -.0 -Only 3 banks In Beaumont, 11 banks In Houston, 6 banks in San Antonio, 3 banks in Shreveport and 37 banks in "All others" reported the number of savings dopositors. e . I I ••••••• IIIIIIIIIIIIIIIIIII •• , ••••• ,I •• IIII •• I.,111,.,., ..... , ........ " •••• , •••••• ,1." ••• ,11111,1,11111.1,1'1'1'11"'11,1.,.,1'1,1,11."11,,1,.,1,11111,.,,,1,1 •• 1.,.,.1", 1 1,.1., •• "'1'11,1,11".""" ••• "".,,1".,1111111111111111,.111111111,1'0 JANUARY DISCOUNT RATES Dallas Rates oharged oustomers on prime oommeroial papor suoh as i8 now ellglblo for rediscount undor the Fedoral Reserve Aot . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . Rllte charged on loans to other banks seoured by bills reoeivable. . . . . . . . . . . . . . . . . . . Hate on loatla eecurod by prime stook exohange or othor ourrent eollatoral (not In· eluding loatla placed in otber markets through correspondent banks): Demllnd... ............ . .... . .......... .......... ..... . .. .. ......... Time . . . . . . .. .. . .. . .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. . .. .. .. .. .. . Hate ohar~ed all commedity paper seoured by warehouse reeeipts, eto . . .. . .. ... .. . . Rnte on eattle inana. . . .. .. . . . . .. . .. .. . .. .. . . . . .. . . . .. . .. .. . .. .. .. . .. . .. . .. .. . 8. Prevailing Rates: EI Paso Fort Worth Rouston 5~-7 6 11-8 5-0 5-6 6 6 5-0 11-7 11-8 6 6-7 11-8 6- 8 8 6-8 11-8 11-8 6-8 0- 8 11-7 11-7 6 7-8 San Antonio Waco 11-8 6 11-8 6-8 6-8 7- 8 11-8 6-8 6-8 7- 8 ~ ,11 1111111111111111111111111111111,.1111111111111111111.1111111111111111 ....... 11111111 .. 1.11111111 .. 1111111111 .... ""11111.11,.,1111111,1111 .. 11111111111111111111111t1.1I1I " 111111111111111111111 1 111111111111111(11111111111111111111111111111111'8 MONTHLY BUSINESS REVIEW 6 INDUSTRY The past month witnessed a further sea- (excluding linters) amounted to 910,321 bales in Decemsonal slackening in the operations of cot- ber as compared to 1,048,760 bales in November, and 1,057,tonseed oil mills at both Texas and all 075 bales in December, 1928. 9 United States mills. Likewise, operations were on a smaller scale than in December last year. The receipts of seed durGALVESTON STOCK STATEMENT ing the first five months of the current season were in Dec. 31, Dec. 31, smaller volume than in the same period of the previous 1020 1028 season. The mill stocks of cake and meal and linters on For Groat Britain .. . .. ......... •... .. , . . . .. . .....• , . . 12,000 16,000 For France .. .. . . .... . .. . .. . . . . . ... .. .... . , • . . . . . . . . . 10,200 17,500 December 31 at Texas mills were only slightly larger than For otherforelgn ports .. . . . . . . . . . . . . . • . . . . . • . . . . . . . . . 60,500 65,600 For constwise ports .... . .. . ... . . . ..... . .. ... . . ...• , . . . 1,000 8,000 a month earlier but considerably larger than a year ago. In compreas.. and depots . . ....... ... .. •. . ... .. ... , . . . . 434,162 674,6U3 Stocks of hulls declined during the month but were slightly Total. . . . .... .. . . . . . .... . . . . .. . . . .. . 608,762 671,693 larger than a year ago. Cottonseed Products I!JUIlIIU ..... IIIIIIIIIIIIIII ............. III ... IIIIIIIIIU.II .. II .......... II .... II ......... 1111 .. 1... 111111111 ........ a l l •••• , ••• ,I.lt •••••••• , ••••••••• I •••••• I ............. 1......... 1.1.1 ........ 1••••••••• 11, ....... ,111.1 •• • • "" II"I"~ STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS m .. COTTON MOVEMENTS THROUGII TIlE PORT OF HOUSTON December December § 1920 1928 t(!] TEXTILE MILLING STATISTICS Receipts .......... . . .. . .. . ... . .. . •.. . . .• .... . . .. . . . . . Exports: United Kingdom . . . . . . . . . •. . . .• . . . . . •. . . . . . France. .. .. . . . . .. . . . . . .• . . . . . • . . . .• . . . . . . . Italy . . . . . . . . . . . . . . . . . . . . • .. . . • .. . . . . • . . . . . Germany .. ... ..... •.. ..• • . .. , . • . ... , ..... . Othcr Eurollo.. . .. . ..... , . ....• . ... . . .. , . . . Jaran .. . . . . . .. . .. . ....... , ...... , . ... . ,... _ AI otber countries... ... . . .. .... ... . ..... . . . ;; Total foreign ports . . . . . . . . . . . . . . . . . . . . . . . .. ;; Stocks at all United States ports, December 31. .... . , . .. . December ~,II.I.I •••• I •• I•••• ,I ...........................u ••• I•• 1929 1028 3,049 102,786 1,616,360 1••••• 1.1 ••••••••••••••••••••• 111111.111 ••••••••••••• SPOT COTTON PRICES-(Mlddllng Basis) (Cenla Per Pound) December, 1929 High Low New york . .. "., ..... .. ... , •. " . . , . .... . Now Orloans . . , .. . .. .... .. . . . . ... . . . . .. . . Dallns . . ...... . .. , .. .• • , . . . ... . . . •. . ... , Houston ... .. . ....... ... . .. .... , .. ... . .. . Galveston .. .. ... . .. . . .. , .. . .. .. •.... .... 17.65 17 .38 10. 60 17 .50 17 . 60 17.00 10 . 68 16 .06 16 .86 16.95 January 15, 1030 17.45 17 .06 16. 45 17 .30 17.40 COTTON CONSUMED AND ON HAND December 1!I1!.!!llIfI .. IIIIIIIIIIIIIIIIIII1 ... tltllI ......... III1 ......... III1 .. II ...... II ...... II ................................. 8 Cotton Movements There was a further seasonal slowing down in the receipts and exports of cotton at the ports of Houston and Galveston during December. Movements were also considerably smaller than in the corresponding month last year. The domestic consumption of cotton, which totaled 453,892 bales in December, reflected a further sharp decline from the previous month and was considerably less than in the same month of 1928. The total for the current season, however, is ' still 20 per cent larger than in the corresponding period of the previous season. Foreign exports of cotton G) ••• I ••• I •••••• I •••• I ........ I.I •• I ................. I.I •••••••••• 11.11 •••••••• 1 •• 1.............. 1••• 1•••••• 1.1 •• 'II'II'~:::::::::::':_ COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON August 1 to December 31 This Season Last Season 1,566,762 1,132,605 608,762 : "'IIIIIII~ [!J••••• I ••••• III ••••• I •••••••••• , •• I •• I ........................... 1••••••••••••• 1 .. 1••• 1•••••••••••••• 1 ••• , •• 111 ••• ""'IGJ 1929 3,111 103,192 1,440,646 1928 436,803 444,196 7,206,171 1,006,461 500,696 346,278 1,260,144 530,48,1 817,514 231,417 4,788,044 2,453,484 (3"111111 .... 1111111 .... 1111111 ................ 11 .......... 111 .. 111.11 ... 1 .... 111 ...... 11111 '''"''''"I1I1I1''II'''I''I~ November December 0,920,668 799,li09 535,859 399,601 1,115,016 400,696 609,1 68 212,336 4,102,275 2,727,680 t:!J ... I ...... III1 ....... II ........................................................U ....... II ............. III ............ rn December 1929 270,686 309,451 : § August 1 to December 31 This Senson Last Senson Gl.... III ....... IIIU .. UI ...... UI .......... IIIU ........ U .......... UIIlIIlIl .. III .. I ........ 11111111111111111111111110 December i SEASON'S RECEIPTS, EXPORTS A~D STOCKS AT ALL UNITED STATES PORTS There was a decline in the consumption of cotton and production of cloth at reo porting textile mills in the ElevenLh District in December. The number of bales of raw cotton consumed during the month was 2,709 as compared to 3,111 bales in November, and 3,04.9 bales in December last year. Production of cloth declined 13.5 per cent from November and was 17.8 per cent below the output in the corresponding month of 1928..Orders on hand on December 31 showed a reduction from those a month earlier and a year ago, while stocks held at the close of the month were larger than at both previous periods. 2,709 Number bal.. consumed .............. . ... . Number splndl.. aotlve . .... .. .. . . . . . . , .. . 103,102 Number pounds cloth produced ..... . .... . . 1,246,087 August 1 to December 31 This Senson Last Season ·0 L~~=::,::,. . . !.. . . .,:::,. . ,.::::,~. . . ~:~!~:~.,,:~,~ :~,. ..l . Textile Milling Receipts. .. . . .. .......... ... . Exports . ... .... , . .. . . . .... . . Stocks, December 31.. ........ III1I1 ...... I ... IIII ....... II .. III1I1.III.II.II.II.III1.II •• IIIII.II ... It.111 ........... 1......... 1111111· .. : Cottonseed received at milia 4,282,246 1,477,080 (tons) . . ..... . ........... . . 1,129,021 3,976,671 Cottonseed cr\IBhed (tons) . ... . 1,050,843 876,237 2,911,711 2,969,144 439,931 1,333,733 Cottonseed on hand (tons) . . . . . 273,890 1,106,666 Crudo 011 produced (pounds) .. . 264,801,200 308,368,288 808,517,9113 920,622,360 408,326 Cako and meal produced (tons) 490,428 1,292,827 1,328,327 798,372 Hulls produced (tons) ... . .... . 236,647 284,666 801,213 Linters produced (running 612,032 bal..) .......... . . ... ..... . 185,366 601,027 213,576 Stocks on hand December 31 : 74,304,151 85,334,962 Crude oil (pounds) . . . ...... . . 30,342,276 31,819,860 42,765 203,554 68,738 182,771 Cake and meal (tons) . ..... . . . 72,903 164,617 151,114 Hulls (tons) . . ... . ....... .. . . 76,400 232,275 40,318 Linters (running bales) ....... . 73,507 18U,709 IIIIIIIUllUIIlIlIlI ... , .......... UI ... II ..... UItI ........ UIlI ........... II ......... 11I1I1I1 .... UI ... tllI ...... [!l1 •• I.,IIII ............................... I.I ••• I •••• I •••••••••• 1 •••••••••••• 1•• 11 •• , •• ,,11,1, •• ,.111.1.1.11.1111111.llm e ......... ~ Texna United States August 1 to December 31 August 1 to December 31 This Season Last Season This Season Last Season . 2,280,796 1,701,680 671,693 8.11111 .... 111 .. 111111 ...... 11111 ................... 11 .. 1 ..... 11111111 .. 1 .. 11111111 .. 11111111111 .. 111 .... 11111111 ...... 8 December August 1 to December 31 1929 Cotton growing states: Cotton consumed.... . .. . . . . On hand December 31 inConsuming establishments. Puhlic storage and compreas.. , . . . ....... .. .. . United States: Cotton consumed. . . . . . . . . . . On hand December 31 InConsuming .. tablishmellts. Public storage and comprossCB . ........ .. . ... . 1928 353,P71 404,807 1929 1928 2,122,572 2,130,110 1,422,238 453,802 533,301 1,320.025 5,700,912 5,068,948 2,742,002 2,270,350 1,844,248 1,733,030 5,914,422 6,236,722 [!I •• , •••• I ••••• '.II •••••••• II ••• I •••• I.I ........... I ••••••••• 1•• 1"'1'1.1,, •••• 11 •• 11111.,1.1,1"'11,,1 ••• 111 ••• I ••••••• II!] Petroleum Daily average production of crude oil in the Eleventh Federal Reserve District declined further in December but the longer month increased the total yield to 279,700 barrels above that in November. Total production for the month amounted to 26,844,750 barrels as compared to 26,565,050 barrels in the previous month and 23,339,700 barrels in the closing month of :I 928. There was a slight increase in field work, which was most noticeable in the flush areas, but the output of new wells was lower. An increase in wildcat activity in all directions from MONTHLY BUSINESS REVIEW the discovery well, was reported in the new Van field of East Texas. I , With the exception of North and East Central Texas, all fields in Texas showed declines in daily average output which lowered the average for the State to 827,24,3 barrels, a reduction of 19,540 barrels from November. North Texas showed a gain of 1,14.3 barrels in daily average production and East Central Texas an increase of 5,077 barrels while Central West, Texas Coastal, and Southwest Texas registered declines, respectively, of 18,14.5 barrels, 7,904, barrels, and 1,359 barrels. In North Texas chief interest was centered on efforts to apply a more rigid restriction to operators in Gray County where production has shown a steady increase in recent months. Winkler County reflected a sharp' decline in production which lowered the yield in Central West Texas. Crude oil output in the Salt Flat field of Southwest . . 91111111 .. 1111111111111111 .. 1111111111111111111 ..... 111111111 ........ 111 .. 11111111111111 .. 11I1I1I1I1I11I1I1I1I1I11UIII[€l I. OIL North 'rex... . .. .. . .. . . . . • . .. . I.:~ f§il§;'(f:: Total Texaa .. .... . " North Louisiana. ..... . . .. . 'rotal District.. ...... p~;:~;~::., ~~:~~~. ';:~tlft :~!F. f:1m nm 5,000,060 103,260 +227,560 + 1,143 25,044,500 1,200,250 827,248 88,718 + 191,550 + 88,160 - 21,188 + 1,648 20,g44,750 806,901 +279,700 I .. - 19,640 i.::::.§ 8111111111111111111111111111111111111111 ..... 1111111111111111111111111111111111111111111111''''1111111111111111111111118 Crude oil figurcs subject to change. 7 Texas likewise showed a decline in December. Decidedly favorable developments in field work in the completion of large size producers was reported at Barber's Hill in the Gulf Coastal region. Production in North Louisiana aggregated 1,200,250 barrels and represented an increase of 1,648 barrels in the daily average run from that area. ~'II'IIII'III'III'IIIIII'I'I"II'II'I"II'I'I'IIIII"1 ••• 1, ••••••••••••••• 11 ... 11 ..... , •• 1............. ,111111111 ••• ,.lm : ~.I ; CRUDE OIL PR"'''' J~l ~.S3rbo Ja:l ~.2 ~0 14, Tex.. Coastal grade" A". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • North and Central Tex .. and North Louisiana (52 gr. and abovo) . .. .. .. . .. .. . .. .. .. .. .. .. . .. . .. .. .. .. . 1. 86 15, :i.:. .. • 1. 70 0.11111111111111111111111111 .. 111111111111 .. 11111111111111111 .. 11111 ..... 11111 .... 11111 .. " " " .... 11 III II III II II II II II EJ Oil statistics compiled by The Oil Woekly, Houston, Tex... Building A substantial increase in the volume of building occurred at principal cities in the Eleventh Federal Reserve District in December but the level reached was below that of a year ago. Permits issued at these centers were valued at $7,151,906 as compared to $5,308,963 in November and $9,755,378 in December, 1928. While the dollar value of permits issued during the current month was 34,.7 per cent greater than in November, the . number of permits involved was 14• 1 per cent smaller and is repr~sentative of an increase in industrial rather than residential construction. The valuation of permits issued during 1929 was 6.7 per cent less than in 1928; six cities reported increases over the previous year and eight showed declines. In both years, construction work was on a broader scale during the first half of the year than in the last half. '¥l olIIIIIIIIlIIIlIIIIIIIlIlIlIlIlIIIIIiUIItIUllIlIlIlllIlIlllIlIlIlIlIlIlIlIlI1111111111111111111111111' ............. 1111 .. 1111111111111111111111 ... 11111111 .......... ........ IIIIIIIIIIIII.II .... III ... I1I1I1 .. IIIIIIIIIIIIIIIIIII .. ,IIIII.IIIIII1I1I1I1~ E BUILDING PERMITS :: E E : : : : § § E : : : : ~ :: :: r!lIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIIUIIIIIIIIIU.UIIIIIIIIIIIII.IIIIIIII .. 111111.1111111111111111111111111111111111'" ........... 111111111111 .... 1 .... 111111111. 111111111111111' .. 111111111111111111111111111 111111111111111 1 111111111 ' I I Lumber A seasonal slowing down in activities occurred at pine mills in the Eleventh District in December, the output and shipments of lumber reaching a level lower than that for the same month in several years. Production declined from 75 per cent of normal in November to 70 per cent in December and shipments ~=::=:. 11 .. '"111111111111111111 ... 11111111111 ... 111111 ............. 111 .......... 1111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIII@:.:::::. ' DECEMBER PINE MILL STATISTICS E E Number of reporting mills .. . .. . . . .. . . . . . .... .. .. . . . ... . . Production. .... .. .... .. .. .. .. .. .. .. .. . .. . .. .. .. .. .. .. . 38 63,062,602 feet ~:~~':;,~".ts:: :::::::::::::::::::::::::: ::::::::::::::::: ~~:~~~:~~ ~~~~ E Unfilled ordors Deeembor 31. . . . . . • . . . . • . . . .. . . . .. .. . . . . . 38,002,620 feet E Normal production. ..... .... ... . .. . ...... . .. . .... ...... 76,797,558 feet :; Stooks December 31. . .. . .. . . . .. . .. . ... .. . .. . . . .. . .. . ... 216,500,663 feet ;; Normal stooks . . . . .. .. . ... .. .. .. .. .. .. . .. . .. . . .. . .. .. . . 196.087,227 feet E E :; E :; :; L~~:~~~~::~"""""". " :." " " " " "~.~.~!.~ . .l Lumber statistics compiled by the Southern Pine A83oeintion, New Orleans, La. ro were reduced from 70 per cent of normal production in the former month to 66 per cent in the latter month. New orders for lumber amounted to 76 per cent of normal production and represented an increase of 11 points from the previous month but a decline of 1 point from last year. Stocks on hand on December 31 were 10 points above normal as compared to 30 points above normal on November 30. Unfilled orders for lumber aggregated 38,002,520 feet at 38 mills at the close of the year as compared to 46,180,296 feet recorded on the books of 52 establishments a month earlier. Cement A seasonal de dine in the volume of shipments and production of Portland cement was shown at Texas mills in December but both output and shipments during the month, as in the previous six months, exceeded those in the corresponding period of the previous year. Total production of cement amounted to 593,000 barrels which was 25.6 per cent greater than in December last year but 10.3 per cent under the output of November. MONTHL Y BUSINESS REVIEW 8 Shipments aggregated 4.50,000 barrels, or 14.0 per cent less than in the previous month but 20.0 per cent over those in December, 1928. Stocks on hand on December 31 rose to the highest level of any previous month-end in several years, showing an increase of 22.3 per cent over November 30 and a 55.7 per cent gain during the twelve months. Production in 1929 was 16.1 per cent greater than in 1928 and shipments were 12.8 per cent larger. I!l::::::::::=:::::_. 1.... ' ....... 1111 .... 111111111111 ...... 1111 ... 1 ........ 1111111' ......... 11111.1111111IUIIIIIIUIiUlflIIUIIIIIIIII .. PRODUCTION. SIDPMENTS AND STOCKS OF PORTLAND CEMENT (Barrels in Thousands) December. 1929 Percentage Change Number ~;~[h ~~~~ 593 460 - 10 .3 - 14 .0 +26 .6 +20 .0 Production ...... .. .. .. .... ShipmcntB . . . . . . ..... .... .. IS Jan. thru Dec .• 1929 Percentage Number o~t:an~~r 7.369 7.084 +16.1 +12 .8 8111~~I~:~,~::~II~~I~ll~~.~~:I;I:.·.::I:IIIIII~I~~.. IIIIII~~.~;~1II1II~~~:~IIIIUIIIIIIII"'IIIIIIU"'lIlIIlIIrn SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board as of January 28. 1980) Industrial activity declined further in December. There 'was little change in commodity prices and conditions in the money market oontinued easy. PRODUCTION AND EMPLOYMENT Industrial production, as measured by the Federal Reserve Board's index, which is adjusted for seasonal variations, declined by 6 per cent in December, following upon a decline of 9 per cent for the preceding month. Nearly all industries reported larger than seasonal reductions in December, except for food industries, which showed little change, and coal, in which output increased. The largest declines in December, as in earlier months, were in automobiles and iron and steel. Production in the textile, shoe, lumber and the nonferrous metals industries also decreased considerably. Stocks of cotton textiles, copper, zinc, and lumber increased in December. In the first three weeks in January, steel plants increased their operations somewhat from the low rate prevailing at the holiday season but were considerably less active than in January, 1928, or 1929. There were further decreases in the output of copper and lumber, while production of crude petroleum increased. Employment in factories in December declined more than the usual amount in the automobile, steel, textile, clothing, and lumber industries. Little change was reported for the food industries and car repair shops, while at meat packing plants and in the paper and printing industries there was some increase in employment. Building contracts awards also declined further in December. Residential contracts continued to be in small volume and there were large decreases in awards for commercial buildings and public works and utilities. During the first half of January awards were larger on a daily average basis than in December. DISTRIBUTION Freight-car loadings in December, as in the preceding month, showed more than the usual seasonal decline. The decline occurred principally in shipments of merchandise and lumber products, while loadings of coal and grain were larger than in November. Sales at department stores in leading cities were about 3 per cent smaller than in December, 1928, according to reports to the Federal Reserve System. Decreases in sales were reported for ten Federal Reserve Districts, an increase of 20 per cent for the Richmond District and little change for the San Francisco District. WHOLESALE PRICES During December wholesale prices of commodities fluctu· ated rather narrowly. Grain, livestock, meat, and bituminous coal prices increased somewhat, while prices of hides and leather products, textiles, petroleum, and pig iron declined. In the first half of January there was little further change in prices. BANK CREDIT Member bank credit increased less thl111 usual over the year-end and in January continued to reflect the liquidation which began early in November. On January 15, total loans and investments of member banks in leading cities were $478,000,000 below the level of December 11, 1929. This decline occurred both at banks in New York City and outside and was in "all other loans" apparently reflecting a seasonal decrease in interbank loans together with a decreased demand for credit by commercial borrowers. Investments and loans on securities increased slightly during the period. Reserve bank credit outstanding increased during the latter half of December in response to seasonal demands for currency and gold exports, but declined in January as currency returned from circulation. Between the week ending December 14. and the week ending January 18, there was a net decline of $277,000,000 in currency in circulation, and also a decline of $37,000,000 in member bank reserve balances. Of the funds thus released $64,000,000 served to offset a loss in the monetary gold stock of country and $244,000,000 was used to retire Reserve bank credit. Reserve bank holdings of Government securities showed an increase of $90,000,000 for the period. Acceptances showed little change, while discounts for member banks declined by $34.7,000,000. Money rates in the short term open markets firmed somewhat over the year-end but eased early in January, and throughout the first half of the month remained generally at the lowest levels since the spring of 1928. The discount rate at the Federal Reserve Bank of Philadelphia was lowered on J anual'Y 16 from 5 to 4.1;2 per cent, the rate prevailing at six other Federal reserve banks.
@FedFRASER