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I
I
rr
OF THE
[
FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents
c. c. WALSH
Chairman and Federal Reserve Agent
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'-oiiiiiiiii'
(Compiled January 15, 1931)
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Dallas, Texas, February 1, 1931
Volume 15, No. 12
,.
'I'his COpy is l'eleased for publication in morning papers
January 31
DISTRICT SUMMARY
indicate that January orders are increasing and that sentiment is improving. It is yet too early, however, to determine
whether the improvement is more than seasonal.
'l'RE SITUATION AT A GLANCE
Eleventh Federal Reserve Distriot
Decembor
1930
Ba~~
dobits to individual acoounts (at 17
D~~~~~o~i 8i~;~ W;icB ' .... ....... ......... .
Reserve hank loans to 'm~;';~; 'b~~k8 ;,i' c~d ..
of month .. . .... . .
RCI!erve bank ratio at·.i~d '(;(~~~ti; "" ' " ...
BcUilding ~rmit valuation nt larger cc~~m :
ommere!al failures (number) .. . . . .. . . .. . ... .
Commeroml failures (liabilities)
Oil produotion (barrols) . . . . . . ..... : : : : : : : : : : : :
Lumber orde~ at pino mills (por cent of normal productIon) ..... .. . . . .. .. . . . .. . . . .. . .
:::
Chango from
Novembor
$817,485,000
+ 15 .6%
4,342.252
60 .2%
4.010.142
88
S 1.025,010
24.225,700
- 45 .5%
- 1.0 points
+ 35. 6~
- 3.3'10
- 22 .0%
2.7%
47%
+ 50.6%
4.0
points
In most sections of. this district, except those most seriousl y affected by the droulh, farmers .have sufficient feed for
use in making 1931 crops; land preparation is more advanced than usual; small grains are in excellent condition;
and ~ good surface and subsoil season is in the ground in
pr~chcally all sections of the district. Furthermore, all indic.atlOns for the coming year point toward greater diversificatIOn and reduced production costs, In the livestock industry,
r~nges. generally are in good condition and livestock are
wmtermg well.
Retail trade in larger centers reflected some improvement during December. Department store sales reflected a
large se~sonal increase as compared to the previous month,
and whIle they were 10 per cent less than in the closing
mo~th of 1929, the comparison was more favorable than
durmg the preceding month. Wholesale distribution showed
a fU.rther substantial recession as compared to both the
prevIOUS month and the corresponding month last year, due
both to the light consumer demand and the desire of retailers to close the year with small inventories; yet late reports
The record of insolvencies during December was slight! y
more favorable than in the previous month, contrary to the
usual seasonal development. As compared to December,
1929,. however, both the number of failures and the aggregate mdebtedness involved, showed a very large increase.
Likewise, the figures for the full year 1930 were considerably larger than during the year 1929.
The deposits of member banks reflected a further decline.
The daily average of combined net demand and time deposits declined from $827,987,000 in November to $810023,000 in December, and in the latter month was $73:927,000 less than a year ago. The commercial loans of banks
in reserve cities reflected a further sharp decline during the
four-week period ending January 7 and on that date were
approximately $50,000,000 less than a year ago·. Their investments, however, were approximately $12,000,000 higher.
Federal Reserve Bank loans to member banks declined from
$7,972,351 on November 30 to $4,34,2,252 on December 31
and on the latter date were $8,948,664, lower than at th;
close of 1929. These loans increased slightly during the first
half of January.
The valuation of building permits reflected a sharp increase of 36 per cent over the low November figure but was
still 31 per cent less than in the corresponding monLh last
year. Likewise, the total for the year was 31 pel' cent less
than that of the previous year. The production, shipments,
and new orders for lumber reached a new low level during
the month, and were materially smaller than a year ago. The
production and shipments of cement, likewise, showed a
large decline as compared to both periods.
BUSINESS
During the month of December, the demand for merchandise in wholesale channels of distribution was very quiet. While
a seasonal decrease was to be expected in some lines, the
decline in the Eleventh Federal Reserve District was general for all reporting lines and in some cases ·was larger
t?an usual. In comparison with December, 1929, sales con!lllued at a lower level, but, with the exception of farm
lmplements, all reporting lines showed a more favorable
Wholesale
Trade
comparison than they did in November. Distribution in the
various lines during the last six months of 1930 registered
declines as compared to the corresponding period a year
earlier, ranging from 12.7 to 4,7.2 per cent. While a portion
of the falling off was altributable to the extensive price reductions, other important factors were the light consumer
demand resulting from the poor crop returns, and the efforts
of merchants to reduce inventories. Reports seem to indicate an improved demand and a stronger undertone of confi-
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHL Y BUSINESS REVIEW
dence since the turn of the year, yet it is too early to
determine whether the gain is more than seasonal. Collections in most lines were smaller than in the previous month.
While the demand for dry goods on the part of merchants and retailers during December was 37.4 per cent
smaller than in the preceding month, it was only 19.8 per
cent less than in the same month a year ago; whereas,
November sales were 34..2 per cent below those in November, 1929. Sales during the second half of 1930 averaged
35.6 per cent less than in the corresponding period of 1929.
Merchants bought sparingly during December because of
the small consumer demand and the desire to close the year
with small inventories. Wholesalers reported that their collections continued to be in small volume during December.
Contrary to the usual seasonal movement, business of
wholesale farm implement firms registered a decline of 44.1
per cent from the level of the preceding month, and was
68.9 per cent smaller than in December a year ago. Sales
for the last half of the year were 4.7.2 per cent below those
of the corresponding period in 1929. Recent reports indicate that sales picked up slightly in the first part of January.
No change in prices was reported. The volume of collections
during the month showed a substantial seasonal decrease
as compared to November.
A further decline of 12.7 per cent occurred in December in the demand for hardware at wholesale in this district,
and sales during the month were 22.8 per cent smaller than
in December, 1929. Merchants were inclined to limit their
purchases to actual necessities over the year-end, in order
to reduce their inventories. During the months from July to
December, inclusive, business averaged 27.2 per cent below
the level of the corresponding period a year ago. It appears
that the demand for wholesale hardware was slightly better
in South Texas than it was in other sections. Prices continued
their downward trend. The ratio of collections during the
month to accounts outstanding declined further, from 35.0
per cent in November to 32.9 per cent in December.
The sales of reporting wholesale grocery firms in December were 8 .5 per cent smaller than in the preceding month
and were 12.5 per cent less than in the same month a year
ago. Business was rather spotty, being fairly good in some
sections and poor in others. Average sales during the last
half-year were 12.7 per cent lower than those of the last
half of 1929. Wholesalers reduced their stocks n.5 per
cent during the month, and on December 31, inventories
were 19.3 per cent smaller than a year earlier. Collections
were on almost the same scale as in November, but in their
relation to accounts outstanding they showed an improvement.
The distribution of drugs at wholesale during December
was on a scale 17.9 per cent below that of a year ago, and
showed a small decrease from the preceding month. A midseason quietude was in evidence over the greater part of this
district. Demand during the six months ending December
31 registered a decline of 20.2 per cent from the same period
in 1929. Collections during the month showed a further
decrease of 11.7 per cent as compared to November.
CONDITION OF WHOLESALE TRADE DURING DECEMBER, 1930
Percentage of inorcaan or cieorcnsc inNet Sales
Net Salos
Stocks
Ratio of colleoDeo., 1930
July 1 to data Deo., 1930 tions during Dco.
compared with compared with oompared with to accounts and
Deo. Nov. samc poriod Dec. Nov. notes outBtanding
1929 1930
Inst year
1029 1030 on November 30
Groceries ......... - 12.5 - 8.5
-12.7
-10 .3 -11.5
72.3
Dry goods ........ - 10.8 -37.4
-35 .6
-26.3 -13. 1
26 .0
Farm implemonts .. -68 .0 -44.1
-47.2
- 2.6 - 3.1
15.0
nardware ........ -22 .8 - 12 .7
-27.2
+ 4.6 - 3.7
' 32.0
Drugs ........ .. .. - 17.9 - 4.3
-20.2
- 10.9 - 3.1 !,a 37.6
Retail
Trade
Stimulated by Christmas shopping, the
December sales of department stores in
this district reflected an increase of 50.6
per cent over the previous month, but showed a decline of
10 per cent as compared to the same month last year. It is
significant, however, that the decline was smaller than in
November. Immediately following the holiday shopping
period, extensive reduced price sales were featured in order
to clear out winter merchandise and reports indicate that
results are proving to be very encouraging. Total sales of
reporting firms during the year 1930 were 6.9 per cent
smaller than those of 1929.
Stocks on hand at the close of the year were 10.2 per
cent lower than on November 30 and 25.5 per cent less than
on December 31, 1929. While sales have declined, retailers
have been able to maintain a normal rate of stock turnover
through the gradual reduction of inventories. The ratio of
stock turnover during 1930 was 3.17 as compared to 3.21
in the previous year.
Collections reflected a decline during the month. The
ratio of December collections to accounts outstanding on
December 1 was 32.8 per cent as compared to 34.4. per cent
in November and 36.1 per cent in December last year.
BUSINESS OF DEPARTMENT STORES
Total Sales (Percentage):
December, 1930, compared with December, 1029 ........... . ....• .. ........•....•
December, 1930, compared with November, 1930 .. . ..... . .. .. .. . ...... ... .•......
January 1 to date, comparcd with Bame porlod 1ll6t year ... ..• . ...• ... ... .. ... .... .
Credit &lIes (Percentage):
December, 1930, compared with December, 1929 . ......... ... . . ......• . ....•. . . ..
December, 1930, compared with November, 19aO ........... '............•....•....
January 1 to date, compared with same poriod 1ll6t year .... ..... .. .•.. . .. ... . ... . .
Stocks (Percentage):
Decomber, 1930, comparod with Decamber, 1929 ..................... .. ........ ..
Deaember, 1930, oomparcd with November, 1930 ....... . ..••.....• . .........•... .
Stock Turnover (Rato):
Rato of stoak turnovcr in December, 1929 .. .. ....... ... . . .... . ................. .
nato of stock turnover in December, 1930 ........ .. .......... . ......... . ...•....
Rato of Btock turnover .lanuary 1 to December 31, 1929 ................. . .... . ... .
nate of Btock turnover January 1 to Decomber 31, 1930 . .. ....... ..... ........... .
Ratio of December collections to accounts receivable and outstanding December 1, 1930.. .
Comntercial
Failures
Contrary to the usual seasonal trend,
there was a reduction in the rate of business failures in the Eleventh Federal Reserve District during December. Ordinarily the seasonal
Dnllll6
- 11.2
+43.0
-4.4
Fort Worth
- 6.1
+74 .2
- 8.0
Houston
-13 .9
+50.4
-10.0
Otbers
- 8.5
+44.1
- 5.1
- 12.2
+33.5
- 2.5
- 1.5
+66.8
- 3.0
-12.2
+44.3
- 6.0
- 7.0
+36.5
- 1.0
- 8.7
+42.0
- 3.1
- 4.3
-22.4
2.6
-30.1
+
-18.5
-25.3
-15.5
-25.2
-10.2
-25 .5
.48
.42
3.65
3.42
29.2
.41
.38
2.72
2.60
31.2
.44
.45
3.20
3.29
37.5
.43
.46
3.11
3.22
35.0
.44
.43
3.21
3.17
32.8
Total Distriot
-10.0
+50.6
- 6.9
strain resulting from year-end settlements causes more numerous defaults and a larger volume of indebtedness. R. G.
Dun & Company reported that 88 defaults occurred in
December, with a total indebtedness amounting to $1,925,-
MONTHLY BUSINESS REVIEW
3
During 1930, there were 721 insolvencies in this district
as against 525 in ] 929. The aggregate indebtedness of de:
~a ulting firms. rose to $22,252,357 as compared to $9,661,808
In the precedmg year, and their average liability amounted
to $30,863, which is the largest figure recorded since these
statistics became available in 1916.
910, as compared with 91 insolvencies in November of which
the combined li ability was $2,497,220. In comparison with
the final month of 1929, the record is much less favorable,
as in that monLh only 39 failures were registered, owing a
total of $1,035,110.
AGRICUL TURE
Fanners in this district, since the fIrst of
December, h.we made rapid progress with
the preparation of the soil for spring
planting as the weather condiLions have been generally
favorl'ble for Lhis work. Reports indicale that land preparation is now more advanced in most sections of the disLrict
than it was at this time a year ago . Another favorab le factor
is that a deep subsoil season now obtains, with a few local
exceptions, in nIl secl'ons of the district. MOl'e severe tempera tures will be needed during January and February to
pulverize the soil and destroy insects.
Small grains are reported to be in good to excellent condition in practically all sections. The planLs have grown
rapidly under the stimulus of moderate temperatures and
ample moisture. The Department of AgricuILure estimated
that the area sown to winter wheat in Texas in the fall of
1930 totals 3,] 52,000 acres, as compared to 3,060,000 acres
sown in the fall of 1929, or an increase of 3 pel' cent. The
area in New Mexico was increased from 346,000 acres in
Lhe fall of ] 929 to 367,000 acres in 1930, representing an
increase of 6 per cenl.. The 42,000 acres sown to this crop
in Arizona accounts for a decline of 11 per cent and the
3,877,000 acres sown in Oklahoma was 6 per cent lower
than in the fall of 1929. A large area of fall oats has already been seeded and an additional acreage will be sown
during the current month.
According to the Department of AgriculLure, all important truck crops in Texas, wiLh the exception of spina?h,
showed a marked gain during December. The crops showmg
the largest gain were beets, broccoli, cabbage, and carrots.
The condition of the spinach crop declined 10 points. While
the carload lot shipments of fruit and vegetables from the
Rio Grande Valley section declined materially during December, they have shown a large increase since the first of
Ihe year. During the week ending Jannary 10, there were
1,4,09 cars moved, as compared to ] ,3] 3 cars for the corresponding week last year. Total movements for the season,
however, were only 6,130 cars, as compared to 6,556 cars
in the previous season. The commodities showing the heaviest
Crop Conditions
d~cline, ~s compared to last season, were grapefruit, mixed
('It!·US, mIxed vegetables, and sweet potatoes. Shipments of
spmach, on the other hand, showed a very large increase.
. Texas Crop Values In the table shown below are given the
Declined Further
estimates of the United States Departin 1930
ment of Agriculture, on the production
and value (based on the December 1
farm price) of the principal crops in Texas for the years
1929 and 1930. The hypothetical value of all Texas crops
registered a furth er decline of $174,4,62,000 in 1930, bringing lhe hypothetical value of all crops down to $434,512,000.
While the lower returns were due partly to the lower yields
of cerLain crops resulting from the prolonged drouth over
a large area, the major facLor was the drastic declines in
the prices of agricultural products.
In evaluating the effects of the drouth, it should be emphasized that the per acre yield of every principal crop, with
the exception of cotton and white potatoes, was lower in
1930 thon in the previous ycar. While the total production
of certain crops exceeded that of. the previous year, noticeobly corn, oats, rice, and sweet potatoes, it was due entirely
to the larger acreage. The effects of the drouth were parlicularly severe in Northeast Texas and a large area in
Northwest Texas where crops have been affected for two or
more successive years. In the case of some crops, the late
fall rains added to the production estimates of the early fall
but did not entirely retrieve the loss sustained from the dry
weather during the summer. It is significant, however, that
the southern half of the State, which suffered from a low
yield of cotton in 1929, harvested a good cotton crop this
year.
The heavy decline in the value of agricultural production
resulted to a large extent from the widespread price recessions. The lower value was particularly noticeable in the
elise of collon and wheat, which accounted for approximately
90 per cent of the decline, that of cotton being 79 per cent
and that of wheat around 11 per cent. Nevertheless, all other
crops with the exception of white potatoes and major truck
crops shared in the decline.
COMPARATIVE PRODUCTION AND VHtm OF TmXAS FARM PRODUCTS AS COMPILED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE
VHUE-(Based on Deeembor 1 Farm Price)
QUANTITY
COMMODITY
Cotton .... ... ..................... . .. .
Cottonseed ........ . .......•. . ..•........
Corn ...... . . . . .. ...•. . ...• . .. · · · . · ····· .
Whellt ........... ........ .......... .... .
Ontll. ..
.. .... ....... ........
..
Bllrloy .......................... · .. .... .
Ornin sorghums., ....... . .. , .. ,., . .•• ···
Rioe ................................... .
noy (tll",e lind wild) .... . ............... .
Broom oorn ... .. , .. , .... . ........... . ... .
POtlltoc!! (whilo) .....................• . ..
l'otlltoOll (sweot) ..... . .... . ............. .
Peanu ts ........... .. ............ ···· ·· · .
Totnl valuo of twel vo erops .....
llYJlothotiell1 valne of 1\11 oropll.. . .
••••• ••• + •
Lives/,oclc
• •
t
• • • •
••
•••
1020
4,100,000 balo3
1,820,000 tons
01,.108,000 huaheiJI
28,270,000 bushels
40,010,000 bu.hol.
a.570,000 hu.hel.
40,816,000 bushels
8,40a,000 bushols
U25,OOO to".
1,200 tons
3,674,000 hushels
7,630,000 bushels
62,800.000 pounds
3,0'JO,000 bales
1,752,000 toas
86, 127.000 bushels
37,800,000 bushels
43,176,000 bushels
5,075,000 bushels
40,020,000 bushels
7,410,000 bushels
OOO,noo ton.
1,200 tOM
2,450,000 bushels
7,384,000 busbels
71 ,050,000 pounds
+
+
J00,000 bales
74,000 tons
5,28 1,000 bushels
- 0,530,000 bushels
3,464,000 bushels
- 1,605.000 bushels
104,000 bushels
+ 1,047,000 bushels
O~Oo~~o tOilS
1,2 15,000 bushels
+ 240,000 bushels
- 18,250,000 pounds
+
+
+
..... ........... , ........ .. .
••••
•••
t
....
••
t
• • • •
1930
1929
Inerease or Deerease
In Value
$192,700,000
40, 172.000
00,728.000
10,780,000
10,580,000
1,064,000
30,450,000
0,517,000
11,270,000
00,000
5,005.000
7,248,000
1,848.000
$315,200,000
50,064,000
73,208,000
30,600,000
22,020,000
3,140,000
32,844,000
7.104,000
12,552,000
134 ,000
3,688,000
7,753,000
2,020,000
$122,500,000
15,802,000
0,480.000
10,001.000
2,431,000
1,182.000
2,304,000
077,000
],282,000
44,000
- 2,007,000
+ 505,000
781,000
-
$404,000,000
Inorease or Deoreaso
in Quantity
1080
S570, ]22,000
$008,974,000
-$172.002,000
-$174,402.000
54~ 4,51 2,000
•
••
The condition of livestock and their
ranges continued generally good during
weeks and prospects are much more promis-
+ _+
-
t·
ing than they were a year ago. Due to the general rains
during December, practically all sections of the district
have a good season in the ground. In some areas there
4
MONTHLY BUSINESS REVIEW
will be enough grass to carry stock through the winter and
there is an ample supply of roughage in most sections.
There is an abundance of grain pastures which are affording much supplemental grazing. The condition of cattle
ranges on January 1, as reported by the Department of Agriculture, declined 1 point in Texas and New Mexico, but
remained unchanged in Arizona. While sheep and goat
ranges in Texas declined 4. points during the month to 76
per cent of normal on January 1, the outlook is much
brighter than a year ago, as the continuance of the drouthy
conditions at the beginning of 1930 caused a heavy deterioration during the fall months, whereas, moisture is ample in
all areas this year. The condition of cattle remained unchanged in Texas and Arizona, but declined 1 point in New
Mexico. The January 1 condition of sheep in Texas at 81
per cent of normal was 2 points lower than a month earlier
and a year ago. There was no change in the condition of
sheep in New Mexico and Arizona. Due to the favorable
weather conditions very little feeding has been necessary
in the sheep areas and they have held up well. Unless unusually severe weather is had, they should go through the
winter in much beLter condition than a year ago.
Movements
The receipts of cattle and calves at the
and Prices
Fort Worth market reflected a decline as
compared to both the previous month and
the corresponding month a year ago. While the arrivals of
hogs were somewhat larger than in November, they fell
considerably short of those during December, 1929. The
receipts of sheep reflected a large increase over the previous
month and a moderate gain as compared to a year ago.
o
The cattle market during December was characterized
by a slow demand and gradually declining prices. Since the
first of the year, however, prices have remained generally
steady. The demand for stockers recently has been more
active. The market for calves, after declining during December, showed some strength during the first half of January.
The trend of hog prices has been unevenly downward. Although sheep and lambs have been coming to market in
larger volume, prices were a shade stronger during December and developed considerable strength during the first
half of January.
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Dcocmber
Cattlo .......... .
Calves .....•• . ..
Hogs ........... .
Sheep ....... . .. .
1930
48,629
27,616
16,904
20,086
December Change over November Ohange ovor
1929
Year
1030
Month
68,600
28,126
26,538
26,381
-10,071
610
- 9,63'1
3,706
+
49,062
34,612
14,880
17,861
.-
633
6,996
+ 2,024
+11,235
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundred-wcight,)
Decomber
Deof steers ............. . .. . ........ .. ... .
Stooker steers ..... .. .. . .... . .... . . .. , ... .
Dutcher cows . ... .. ..... . ....... . ....... .
Stooker COIVS ........... .... . ..... . ...... .
Calves ............ . ..... .. ......... . ... .
Hogs ............................... . .. .
~:bs::::::::::::::::::::::::::::::::::
Dccember
1930
$11.25
7.75
6.35
5.35
8.50
8.40
5.50
7.60
1929
$14 .00
11.00
8.25
6.25
11 .25
0.75
9.00
13.00
November
10aO
$10.25
7.00
5.10
6.00
8.75
9.25
4.50
7.50
FINANCE
Federal Reserve Bank loans to member
banks remained generally steady dUlling
the first three weeks of the month, but
ran off considerably toward the year-end.
At the close of December, total loans amounted to $4,342,252, as compared to $7,972,351 on November 30. The decline was occasioned by the reduction on the part of both
country and reserve city banks. At the close of the year,
Lhere were 90 country banks which owed the Federal Reserve Bank approximately $3,312,000, as compared with
borrowings of approximately $2,500,000 by 43 country
banks on December 31, 1929. While city banks on December 31, 1930, were indebted to the Federal Reserve Bank
for only $1,030,000, they were absorbing approximately
$10,790,000 of Federal Reserve Bank loans on December
31, 1929. While our loans to member banks increased somewhat after the turn of the year, the gain was less than usual.
On January 15, these loans amounted to $5,020,595.
Due to the decline in member banks' loans, total bills
held by this bank declined from $14,016,056.4,2 on November 30 to $12,916,882.52 on December 31, distributed as
follows:
percaions of
the Federal Reserve Bank
Member banks' collateral notes secured by United States Government obligations _ _ _ _ _ _.______ ____ ._ _ _ .._$ 744,500.00
Rediscounts and all other loans to member banks .._
_______ 8,597,752.89
Oven market vurchases (Bankers' Accevtancesl _ _ __ ___ 8,574,630.13
Total bills hcld _ _ _ ._ _ ________ ________ $l2,916,882.52
_
The actual circulation of Federal reserve notes in this
district amounted to $31,900,750 on December 31, which
represents a decline of $54.9,660, as compared to a month
earlier and $15,046,540, as compared to December 31, 1929.
The daily average reserve deposits of member banks amounted to $57,742,351 during December, which was $1,044,936
less than in the previous month, and $6,669,155 lower than
in the corresponding month a year ago.
Reports from member banks in selected
cities during the period, December 10 to
January 7, reflected a sharp decline in
loans and deposits, but a moderate increase in investments. During the first
week of the period, investments of these banks in United
States securities increased sharply, but subsequently declined
and on January 7 were $997,000 less than four weeks earlier.
Investments in other stocks and bonds increased $2,927,000
during the period. While loans on securiLies increased
$109,000, "all other" loans (largely commercial) declined
from $235,603,000 on December 10 to $226,525,000 on
January 7, and on the latter date were $30,519,000 less than
a year ago. Total loans and investments on January 7 were
$7,039,000 lower than four weeks earlier and $37,836,000
lower than on January 8, 1930. During the four-week period,
the net demand deposits of these banks declined $8,4.54,000
and their time deposits $2,077,000. Their combined net demand and time deposits on January 7 were $11,224,000 below those a year ago. Their bills payable and rediscounts
with the Federal Reserve Bank amounted to $1,14.0,000 on
January 7, as compared to $2,195,000 on December 10, and
$11,936,000 on January 8, 1930.
Condition of
Member Banles
in Selected
Cities
CONDITION STATISTICS OF MEMDER BANKS IN SELECTED CITIES
(In thousands of dollnrs)
Jan. 7,
United States securities owned ...... . . . , . . .
All other stooks, bonds, and sccurities owned.
Lonns on sccurities ... . .... .. ..... . ...... .
All other loans ......... . . .. . ............ .
'l'otal loans . .... . ... . ........... . ....... .
Net demand depesi ts .................... .
Time deposits .. . ...................... . . .
lkserve with FedoralResorve Bank . . ..... .
Bills payable and rediscounts with Fedoral
Reserve Dank .. ... . . . .. ......... . .. . . . .
Deo. lO,
1031
$ 6.1,250
52,670
04,176
226,525
320,701
268,112
147,675
32,809
1030
$ 64,256
40,743
04,067
235,603
329,670
276,566
149,652
32,009
1,140
2,195
Jnn.8,
1930
$ 63,828
40,400
113, 194
257,044
370,238
291,022
135,889
33,333
11,036
MONTHLY BUSINESS REVIEW
There was a further decrease of $17,9M,000 from the previous month in the
combined daily average of net demand
and Lime deposits during December. Average deposits of
member banks in this district amounted to $810,023,000 in
December, as compared to $827,987,000 in November, and
$883,950,000 in the final month of 1929. The decline was
somewhat larger proportionately in the case of country
banks than it was for reserve city banks. While time deposits were $15,008,000 larger than a year ago, net demand
deposits showed a decline of $88,935,000.
Deposits of
Member Banks
DEBITS '1'0 INDIVIDUAL ACCOUN'rS
(In thousands of dollars)
Abilene.........
Austin..........
Beaumont.. .....
Corsioana.......
Dallns....... ...
EI Paso.........
Fort Worth..... .
Galveston. . .. . ..
Houston.........
Port Arthur. .. ..
Roswoll.........
San Antonio.....
Shreveport ... " .
Texarkana.......
'l'ueson....... .. .
Waoo..... . .....
Wlobita Falls....
Total.....
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
December
1930
$ 7,805
10.002
24,781
5,800
228,240
32,048
84,510
34,208
193,511
0,490
4,559
82,980
30,735
10,084
13,021
16,524
10,540
$817,485
Peroentage
Pereentago
December ebange over November ehange over
1929
year
1930
month
I 10,525
-25. 8
$ 6,060
+17 .1
22,153
-14.2
17,233
+10.3
28,447
- 12.9
21,302
+16.0
8,073
-32,4
4,040
+45.0
293,643
-22 .3
190.377
+10.0
45,700
-28. 0
31,258
+ 5.4
122,709
-31.1
79,408
+ 0.4
40,824
- 15 .0
27,744
+23,5
204,887
- 5.0
163,018
+18.1
12,759
-25 .0
8,728
+ 8.8
5,510
-17.3
4,093
+11.4
87,180
- 4.8
71,002
+15.8
49,618
-38. 1
29,023
+ 5.9
14,018
-20 .0
10,132
+ 5.4
12,833
+ 1.5
0,958
+30.8
18,410
-15 .7
14,879
+ 4.3
27,113
-27 .0
10,693
+17.1
$1,005,183
-18.7
$707,174
+15.0
.r noludes the figures of two banks In Texarkana, Arknosns, located In the Eighth
Combined Total
Resorvo City Banks
Count·ry
Not demand Time Net demand Time Net demand
deposit. deposits doposits deposits doposits
1020 ...... S003,830 $220,111 $270,011 $131,870 $384,228
1030...... 059,110
225,400
270,951
13J,J52 388, J59
J030, .... , 055,119
232,758
208,J07
130,J 11 380,022
1030 .. . . ,. 630,580
220,358
200,635 '132,032
300,051
1030 ... . . , 630,029
237,274
27J,047
138,080 358,382
1930 .. ,... 023,282
241,429
200,058
142,181
353,324
1030.. .... 003,020
244,020
260,854
143,753
342,100
1030 ..... . 591,565
240,952
201,127
142,482
330,438
1030 .. .... 570,002
241,209
250,176 141,075 322,9JO
1930.. .... 592,530
237,595
202,310 130,940 330,220
1030...... 593,120
237,045
265,782
141,153 327,344
1030...... 588,534
239,453
200,790
142,250 321,738
1980, .... , 574,904
235,119
202,124
139,000 312,780
Distriot,
Banks
Time
doposits
$ 88,232
04,317
00,047
06,420
98,204
09,248
100,273
08,470
99,594
07,055
06,792
97.203
95,210
After showing an increase of $848,049 in
November, the volume of acceptances
executed by banks in this district and outstanding at the close of the month declined $716,255 in
MIlY,
June,
December, and amounted to $6,521,161 on December 31.
July,
Aug.,
At the end of 1929, the total of outstanding acceptances was
Sopt"
$11,040,54.5. Acceptances based on import and export
Oot"
Nov"
transactions declined $331,893 during December, amounting
Dec.,
to $2,211,309 at the end of the month; those executed against
the domestic shipment and storage of goods were reduced
There was a general increase of 15.6 per $384,,362 during the month, and aggregated $4,,309,852 on
Debits to
cent in the volume of checks charged to December 31.
I ruIividual
A decrease of 1.7 per cent occurred durdepositors' accounts during December at Savings
Accounts
ing December in the volume of savings
Deposits
banks located in seventeen leading cities
deposits, according to figures obtained
in this district. While there was a decline of 18.7 per cent · from 88 banks in the Eleventh District which operate savas compared to the corresponding month last year, the fall- ings departments. The combined savings accounts of these
ing off was the smallest recorded since September. Debits banks amounted to $152,993,225 on the last day of the
to individual accounts during December aggregated $817,- year, as against $155,570,068 on November 30. There was
an increase of 3.7 per cent, however, as compared to the
4,85,000 as against $707,174,000 in the preceding month and
volume on December 31, 1929.
$1,005,183,000 in December a year ago.
Deo.,
Jan .,
Feb.,
Mllr.,
April,
Acceptance
Market
[SAVINGS DEPOSl'rS
Number of
Reporting
Banks
Beaumont. .......... .. ....
DlIlllls
EI
Fort Worth .... . .. ,.. . . . .. .
Galveston.................
HOuBton....... ... .. . ......
Pas~·.::::::::::::::::::
~~~t t:~~i~''', :::::::::::::
~~~~~p~~t
...... :::::::::::::
Wiohita 11 Ils
All
.. ·.:::::::::::::
4.
Deoember 31, 1030
Number of
Amount of
Snvings
Savill~s
Dopositors
DepOSIts
2
2
3
11.
5,779
04,313
16,057
19,301
13,048
73,085
4·
~
i~:~~
Sa
305.509
4
~.
3g~~
December SI, 1929
Number of
Amount of
Savings
Savings
Dopositors
DepCllits
5,689
08,747
15,912
18,118
13,033
09,059
S 2,472,328
1~:g~~:m i~:~~~
Poreentngo Change
Over Yonr in
Savings Deposits
1~:~~~:m
$ 2,032,198
27,208,242
5,655,710
0,380,988
8,004,239
35,212,358
2k~g~:~~~
+ 0.5
+ 7.9
- 10.5
+ 1.8
-.8
25,204,760
0,322,109
0,207,019
8,128,270
33,OOn,~:2
2g~~:07g
36',~~~
:1=
November 30,1030
Number of
Amount of
Savings
Savin~.
DOllositors
DepOSIts
Pcroentnge Chango
Over Month in
Savings Doposits
654,,715402
n
$ 227',008589,,98i87
10,230
18,919
13,070
5,702,998
7,721,780
9
8,088,73
7~'M~
~2~:~
3f'~~~'m
32:848
23:481:417
~~:m
+ 5: 2
1~:m:m
n
.
.8
-17.4
-.3
:; 0
+ 2.
1:~
U
:;
- 4.8
- 3.0
7
Total . . ... .. , .
$152,093,225
$147,585,958
+ 3:7
.. 300,023
-: 1.
.Ouly 3 banks in Bonuroont, 10 banks in Houston, 6 banks in San Antonio, 3 banks in Shreveport, and 39 banks In All others reported the number of saVlDgs doposltors .
others~
43.
3,719
39,734
1,532,762
19,995,644
•..................................
3,085
40,798
~
1,574.007
21,028,940
302.lnil
- 2.7
3,710
40,758
1,609,297
20,017,010
S155,570,06~
::::::
Prevailing Ratcs:
JANUARY DISCOUNT RAmS
Dallns
Hnte oharged oustomerS on !crime commeroinl paper sueh ns is noW eligible for
redisoount undcr the Fe eral Reserve Aot ........................ . .... , .....
Rate oharged on loans to other banks scoured by bills receivable . ... ......... .. , ...
Rute on loans secured by prime stock exohnngo or other current collateral (not
inoluding loans placed in other markets threugb eorrespondent hanks):
Demand ........................... , ... , .,., .........................
'rime .... , .. ....... .. ............ . .. . .......... .... ..... . .. .. " " " .
Rate ohorged on commodity paper scoured by warehouse receipts, etc . ......... .....
......•........
Rate on oattle loans ... .. .. . ......... . ....... .................
El Pnso
Fort Worth
Houston
Snn Antonio
Waco
4- 0
5- 0
0-8
5*6
5-8
5-0
5-0
5-0
5* 0
5*0
&-8
5*0
5-7
6-8
6
6-8
&-8
&-8
8
&-8
&-8
&-8
0-8
6-8
5-0
5-6
5-0
7-8
&-8
&-8
6-8
6-8
6-8
6-8
5-7
7
6
MONTHLY BUSINESS REVIEW
INDUSTRY
Textile
Milling
A further slight improvement over the
previous month was shown in the Eleventh Federal Reserve District's textile
milling industry during December, but the comparison with
a year ago again reflected a decline. There were 2,092 bales
of raw cotton consumed by reporting mills during the month,
as compared to 2,018 bales in November, and 2,689 bales
in December, 1929. Produ ction of cloth was 8.5 per cent
greater than in the preceding month but 26.4. per cent less
than in the corresponding month of 1929. Stocks on hand
on December 31 exceeded those held on November 30 and
December 31, 1929, by 14.3 per cent and 8.3 per cent, respectively. New orders recorded on the books of reporting
mills were slightly less than on both previous dates.
The domestic consumption of collon in the United States
during December totaled 4.06,207 bales as compared to
4.l4.,887 bales in November, and 4.52,685 bales in December,
1929. Consumption during the period from August 1 to
December 31 of the current season was 26.5 per cent less
than that during the corresponding period of the previous
season.
TEXTILE MILLING STATISTICS-TEXAS
Number bales consumed ......... . ....•. ..
Number spindles aotive ........... ... .... .
Number pnunds oloth produced .. ...... ... .
Deeomber
1930
2,002
76,177
922,013
Deoember
1920
2,689
103, 172
1,254,352
November
1930
2,018
74,857
850,255
STATISTICS ON COTTONSElUD AND COTTONSEED PRODUCTS
'fo:ma
United States
August 1 to December 31 August 1 to December 31
This Season Last Season This SensOll Last Season
Cot,tonseed reeoiveu lit mills
(tons) .... . ........... . ....
3,983,974
1,1 29,078
4,081,127
1. 135,964
Cottonseed crushed (tOTls) .....
2,917,123
3,1 35,202
887,088
875,641
ColtonSL'Cd on hand (tons) .....
1,108,457
205,579
274,449
991.34 1
Crude oil produced ([)ounda) .. . 258,518,514 254,801,290 944,242,200 900,752,046
Cake and meal produced (tons)
1,4J4,8 J3
J,296,131
408,325
417,895
798,527
Hulls produced (tons) ... .. ....
285,047
869,722
248,048
Lini.crs produoed (running
001,339
bales) ................. .. ..
542,846
130,091
185,365
Stocks on hand December 31:
Crudc oil (pouuds) ........... 23 ,242,917 30,342,270 75,665,001 7'1,304 ,151
202,983
Cake nnd menl (tOilS) . .. .. . ..
68,738
298, J39
79,430
173,720
154,373
Hulls (tons) ............ .
72,115
76,400
232,518
Linters (running bales) ... . ....
73,507
325,270
92,241
Cotton
Movements
The receipts and exports of cotton at the
ports of Houston and Galveston reflected
a noticeable seasonal decline during December. Movements were also substantially smaller than in
the corresponding month of 1929. Stocks on hand at both
ports on December 31 again exceeded those held on the
same date a year ago. Foreign exporLs of coLton from the
United States amounted to 765,835 bales in December, as
c0i11pared to 907,64.9 bales in November, and 910,321 bales
in December, 1929. Exports during the five months of the
GUl'rent season averaged 5.2 pel' cent less than those during
Lhe same period of the preceding season.
COTTON MOVEMENTS TnROUGIT THE rORT OF GALVESTON
(Buies)
COTTON CONSUMED AND ON HAND
(Bales)
Cotton Growing Stul.cs:
Cotton oonsumed .. , . . .... . .
On hand Deoember 31 inConsuming establishments.
Publio storago and oompresses .. . ...... , , .....
United States:
Cotton consumed . ... . .. .. ..
On hand December 31 inConsuming establishmonts.
Public storage and oompresses . . . . .. ... ..... ..
December
1930
December
1929
322,130
353,072
August 1 to December 31
This Senson Last Season
1,606,464
5,685,086
2,012,244
2,738,185
CO'l'TON-GALVESTON STOCK STATEMENT
(Bales)
Con'itwiao ports. , ...... .. .. . . .. . ........ . , ... . ..... . .
In comprcsses alld dopots ...... . ........... . .. .. . .... .
Dec, 31,
1930
7,700
10,200
37,000
1,500
647,555
Dec,3 J,
1929
12,900
10,200
50,500
1,000
434,102
Total. .. ..... . . .. ...................... .
703,055
508,702
1,059,432 : ' 1,841,070
8,377,720
5,898,596
For Grant Dritain ....... . .......•............. . .. . ...
For l~runcc ...............•. . ... . .. .. . .. . .. . .... .. ...
}i'or other foreign ports . .... .. .. • ............ . • . . .. . • . .
The past month witnessed a further seasonal decline in the operations of cottonseed oil mills at both Texas and all
United StaLes mills, but the latter mills, with the exception
of lin LeI's produced, reflected an increase over December,
1929. The receipts and crushings of seed this season at both
Texas and United States mills have been greater than in the
previous season, while stocks on hand on December 31 were
less than on the same date a year ago.
The average price received for hulls shipped from mills
reporting to the Federal Reserve Bank, increased during the
period from December 6 to January 3, while the price of
all other products declined. Hulls, which sold for $9.16
per ton on the former date, increased to $9.4,3 per ton on
the latter date. The average price received for crude oil
declined from $ .0615 per pound on December 6 to $ .0596
per pound fo ur weeks later, while cake and meal brought
$30.87 per ton on the earlier date, as compared to $29.49
per ton on January :3. Linters declined from $ .0315 per
pound to $ .0281 per pound during the four weeks. The
average price paid for cottonseed during the period was
$26.59 per ton, as compared to $26.91 per ton in the four
weeks ending December 6.
Cottonseed
Products
August 1 to December 31
This Season Last Season
1,107,699
1,565,702
678,900
1,132,595
703,955
508,702
1,417,257
7,990,042
452,085
December
1929
270,685
309,.151
2,118,120
1,254,204
406,207
December
1930
Re~eipts...... ............
176,135
Exporls. . . . . . . . . . . . . . . . .. . . .
183,.J33
Stocks, December 31... . . . . . . . . ...... .
COTTON MOVEMENTS THROUGIT TIIE PORT OF HOUSTON
(Dules)
Decembor
1930
Receipts.... . . . . . . . . . . . . . . . . .
277,813
Exports. . . . . . . . . . . . . .
251,210
Stooks, December 31. ..
SE~SON'S
Decomber
1929
3R3,072
272,068
August 1 to December 31
This Season Last Senson
2,472,611
2,289,995
1,342,640
1,141,714
J,509,090
1,169,206
R1DCEIPl'S, EXPORTS, AND STOCKS OF COTTON AT ALI,
UNITED STA1'f')S PORTS-(Bnl",,)
Roceipt£, ... .. ... ...... .............. ... . .. .••. . ...
Exporl£: Uniled Kingdom ... ....•........ .... . •.... . .
}i'ranoc . ...............•.• . ..•. .. . . •........
Italy .. . .. .... ...........•....... ...... ... ..
GCrI"nuy ..... .. ... ... .•.......... . . ... ... . .
Other Europe ............ •....... ... , . .... . .
.Japan .. . . .. . ..... . ................ . •... ....
All other countries ......... ... ............. . .
Total foreiRn ports ..... . ............ .. .... . .
Stocks at "II Unilcd States ports, Deoomber 31. ........ . .
August 1 to Dcccrnbe .. 31
'I'bis ScnBon Last SeMon
7,01 9,791
0,954, 258
742,749
'IOO,li90
040,837
535,859
270,482
390,001
1, 115,OJ 0
I,004,B63
392,237
490,090
477,708
009,168
351,630
212,330
3,040,596
4,102,275
4,288,71 2
2,727,080
7
MONTHLY BUSINESS REVIEW
wells yielded a flush production of 267,969 barrels in December, as against 306,571 barrels in the earlier month.
. T~xas was responsible for a further heavy curtailment
m dally average petroleum output, which brought the daily
yield during December in this State down to 697,339 barrels.
The daily average production in the West and West Central
sections was reduced 32,230 barrels and that in North Texas
12,085 barrels, while the East Central and Texas Coastal
regions showed relatively slight increases. Much active interest centers in Rusk County, located in East Central Texas,
where two discoveries of high gravity oil in large quantity
were made during December. Production there was obtained
from the Woodbine sand at a depth of from 3600 to 3650
feet, and was of such nature as to cause available leases in
the surrounding area to be in very strong demand.
In both New Mexico and North Louisiana, daily production during December showed a decrease from the previous
month. New production also was in smaller volume than in
November, especially in New Mexico. The initial yield of
new wells in that State dropped 82,997 barrels, amounting
to 88,398 barrels in December. The sharp decline was due
to the fact that no wells were completed during the last half
of the month.
SPOT COTTON PRICES-(Middling Basis)
(Conts per peund)
Jan.15,
1931
10.10
9.73
9.40
9.80
9.90
December, 19BO
High
Lew
10.60
9.45
10 .30
9.05
9.80
8.50
10.30
9.10
10.36
9.15
Petroleum
The month of December witnessed a
further material reduction from the previous month in both the total and daily average production of
crude oil in the Eleventh District. The combined output of
all fields in the district amounted to 24,,225,700 barrels, as
compared to 24,,907,950 barrels in November, and 27,090,150
barrels in December a year ago. Daily average yield declined
from 830,265 barrels in November to 781,4<740 barrels in the
following month. As reflected in the number of wells completed during the month, December drilling activity showed
a considerable increase over November, although the number of producers reported was 220 in each month. The new
OIL PRODUCTION-(Bnrrels)
North Toxas . .... .. .... . •• ···
Central West· Toxn•..........
East Contral Toxas . . ....••...
Texas Coastnl.. ......... . ....
Southwest Texas .............
CRUDE OIL PRICES
Inoreaso or Decrease Over
November, 1930
Daily Avg.
Total
-12.085
-229,000
-32,230
-690.400
+
51
+ 42,150
+177,000
+ 480
140
+ 80,050
Deoomber, 1980
Daily Avg.
Total
133,652
4,140,100
276,482
8,570,950
40,606
1,258,800
162,430
5,035,600
84,200
2,612,050
Toxas Coastal grado "A" ... . ....... . ................ "
North Toxas (40 ~r .• nd abovo) . . . ............ · .... · .. ·
North Louisiana (44 gr. and above) ................. · .. ·
'Prioo paid for oil 44 gr. and nbovo.
-097,330 -620.200 - - - - - - - -43,918
'l'otnl Texas .... . ...
- 3,882
41,098 - 75,350
Now Moxico .................
- 901
+ 13,300
43,037
North Louisinnn ..... . .... . ...
---- - - -781,474 -682,250 -48,791
24,225,700
- -21,617,500
1,274,050
1,334,150
(Oil stntisties compiled by '1'bo Oil Weekly, Houston, Texas.)
-
'fotnl Distriot .....
Building
The valuation of building permits issued
in December at leading cities in this district rose to $41,910,142, reflecting an increase of 35.6 per
cent from the low volume of November. A decline of 31.3
per cent was registered, however, from the valuation of construction permits issued in December a year ago. Beaumont,
Dallas, and Galveston, reported considerable increases over
both the preceding month and the same month in 1929.
Amarillo, Austin, and San Antonio, also showed an improvement over the previous month.
The aggregate valuation of building permits during the
past year amounted to $67,760,752, as compared to $97,606,091 in 1929. These figures represent a decrease of 30.6
per cent for the district as a whole.
DECEMBER DRILLING RESULTS
North TexlIB .... .......... .
Central West Toxas . .... ....
Enst '1'oxas .... .. ....... ...
Southwest '1'OXIIB ........•..
Toxas Coastal ..... . .... . ...
Texns wildcats .............
Totnl TOxllS .........
New Mexioo ... , ...... . ....
Nort.h Louisiaua ....... .. . ..
Decomhor totnlA, distriot ....
Novomber totals, distriot ....
Fail-
Produoo...,
58
25
24
41
49
2
Gns
Wolls
10
16
3
10
3
2
11
50
199
10
11
53
1
21
422
220
38
lnitial
Produotion
7,708
5,310
125,770
13,453
21,410
3,235
.. is
164
Completion.
149
89
28
00
76
21
-453
urCS
72
48
1
39
24
17
-- -- -- --201
176,895
88,398
2,670
-- -- -- -- --267,069
210
75
220
514
306,571
...............
;::
BUILDING PERMITS
Deoember, 1930
No.
Amarillo .......
Austin .........
Beaumont .. . ...
Corpus Christi ..
Dallns .. .. .....
El Paso ........
Fort IVorth ... ..
Gnlveston ......
l:Iouston ........
Port Arthur . .. .
San Antonio . .. .
~hrovoport . . .. .
Vneo ..........
Wiohita Fulls ...
'rotnl. .....
Valuntion
December, 1029
No.
- - - -32
34 5 00,505
406,573
54
120,734
135
31,755
27
248 1,275,038
120,325
66
473,073
185
099,948
85
1,008,310
224
12.326
34
607,959
242
33,34t
120
27,820
21
7,235
13
50
85
42
279
124
188
85
276
98
340
145
26
12
Peroentage Chango
Valuation Over
Year
Valuation
57.2
$ 162,m
50.4
031,800
80,115
+ 61. 0
31.0
46,401
+ 139.5
532,714
73.5
476,789
341,243
+ 38.8
+1770 .3
87,424
14 .4
1,177,051
85.8
80,637
80.5
3,111,380
55.4
74,728
67.0
84,247
10.7
8,106
31.3
57,151,906
-
-- -------1,777
1,494 54,910,142
-
-
Jan. 14,
1930
51.30
1.85"
1.85
Jnn.13,
1931
$1.00
1.07
1.19
..
Twolve Months
Percentnge Chnngo
Poroentngo Chango
1029
Valuation Over
1930
Vnluation Over
l'eriod
Vnluation
No.
Vuluation
Month
Valuation
~
- .1
575 S 1,845,021
631 S 1,843,145
+ 6.1
- 7.5
3,793, 109
097
S 65,400
3,509,703
1,041
+428.6
2,659,323
76,022
+ .3
2,666,355 1,972
1,750
+ 90.6
-50.2
68,050
2.308,105
. 840
1,150,202
622
- 75.8
+13.9
131,370
9,776,788
3,538
3,770 11,1:15,011
+ 44.3
-32,4
4,380,957
883,879
2,900,106 1,403
1,273
- 49.2
-13.7
11,738,205
248,599
2,747 10,12 1,774 3,377
- 19 .3
-50.8
586,784
3.659,970
1,799.383 2,018
1,446
+960.4
-40 .3
06,000 •
20,526,030
3,713 17,013,072 5.249
- B.8
+ 4.0
2,702,352
1,182,850
2,809,368 1,494
1,140
- 38.4
-53.0
18,078,230
19,095
8,500,919 • 4,425
3,238
+287.1
-54.9
157.045
3.457.917
1,550,714 2,902
2,017
- 27.1
-50.7
45,733
2,660.037
486
1,154.055
360
- 56.0
- 8.0
1,012,297
63,167
419
930,985
264
- 72.2
25,997
-30.6
29,785 S97,606,091
24,018 $67,760,752
+ 35.6
$3,621,806
Novomber, 1930
-
No.
39
65
112
45
246
77
191
118
153
35
216
171
24
25
-
-- 1,517
-
---
MONTHLY BUSINESS REVIEW
Operations at the Eleventh District pine
mills declined to new low levels during
December. It is significant to note, however, that for the
first time since last February the demand for lumber, as
measured by new orders received, exceeded production, although curtailment of the latter was very heavy. During the
four-week period ending December 27 new orders declined
4 points and on that date stood at 4,7 per cent of normal
production, while actual production showed a decrease of
17 points during the period, declining from 61 per cent of
normal on November 29, to 44 per cent on December 27.
Shipments of lumber reflected a decline of 14 points during
the four weeks, being reduced from 57 per cent of normal
production on the former date to 43 per cent on the subsequent date. Due to the maintenance of production at a
Lumber
PINE MILL STATISTICS
(Four-week period ending December 27, 1030)
Number of reporting mills ........... . ... . .............. .
Produotlon .................................... .. . .. .. .
~~le~~~~:::::::::::::::::::::::::::: :::::: :::: :::::::
Unfilled orders Decomber 27 ............................ .
~~k:.I~~~~~'ii7·.:::::::::::::::::::::::::: :::::::::
Shipments below normal produotion . ...... .. ... .... . . ... .
Actual produotion below normal. .... ... .. ........ .. . ... . .
Orders below normal produotion ......................... .
•••• •
45
34,284,000 feet
33,172,000 feot
36,708,000 fect
24,503,000 feet
77,024,000 feet
312,023,000 feot
44, 752,000 feet-57~
43,640,000 feolr-56 0
41,126,000 feclr-53 0
relatively high level and orders and shipments having shown
a steady decline during the past few months, stocks have
accumulated in mill yards and are far ahead of order files.
Unfilled orders on hand at 45 mills on December 27 aggregated 24,,503,000 feet as compared to 21,4,64.,000 feet on
hand at 4,8 establishments on November 29. Operating schedules of mills throughout the district have been reduced.
A material reduction in the activity of
Texas portland cement mills was in evidence during December. Both their production and their
shipments were on the lowest level reached since last January. With an output of 392,000 barrels of cement during the
month, these mills operated on a scale 21.9 per cent smaller
than in November, and 33.9 per cent below that of December, 1929. Their shipments in December amounted to 362,000 barrels, as compared to 453,000 barrels in the previous
month, and 4.50,000 barrels in the corresponding month a
year ago. Stocks 011 hand increased by 29,000 barrels and
aggregated 799,000 barrels at the end of December, as
against 813,000 barrels at the close of 1929.
Cement
Total cement production in Texas declined from 7,369000 barrels in 1929 to 6,781,000 barrels in 1930. Aggregate
shipments during the past year amounted to 6,792,000 barrels, as compared to 7,084.,000 parrels in 1929, reflecting a
decrease of 4,.1 per cent.
......... . .
fa. • • • • • • • • • • • • • • • • • • • + • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
(In thousands of barrola)
December Percentage Change
1030
Over
Number Month
Yenr
302
Produotlon at TeXD8 mills . .. . .................................... ... . ........................... .. ....... .
-21.0
-33.0
aG~
-20. 1
-10.6
;;JliB:: : : : :: : :: : : : :: : : :: : :: : : :: : :: : : : :: : :: : : : :: : : :: : :: : :: : : : :: : : :: : :: : : :: : : 700
+ 3.8 - 1.7
~~be:~e~1~f ~C;::h~l~e~;.s
January througb December 31
Pereontage Change
Number
Over Yenr
6,781
- 8.0
6,702
- 4.1
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board as of January 22, 1981)
Production and factory employment declined further in December.
Wholesale prices decreased during the first half of the month but thereafter were generally steadier. Conditions in the money market remained
easy and in January money rates reached new low levels.
PRODUCTION
Industrial production was further reduced during December, and the
Federal Reserve Board's index, which makes a llowance for usual seasonal
changes, showed a decline of over 2 per cent. Output of steel and iron,
textiles, petroleum, cement, and copper was s ubstantially curtailed. Activity
in meat packing plants and at anthracite mines increased in December,
and in the automobile industry there was an increase in output, reflecting
the introduction of new models. After the turn of the year, automobile output increased further, and steel plants were more active. Construction contracts awarded during December were in about the same volume as in
November, according to reports of the F. W. Dodge Corporation. There
were slight declines, partly seasonal in nature, in contracts for residential
and commercial construction, while public works and utility awards increased somewhat.
EMPLOYMENT AND WAGE PAYMENTS
Employment in manufacturing industries was reduced further by 2.5
per cent between the middle of November and the middle of December, and
factory payrolls also declined. The largest reductions in working forces
were in th e canning, lumber, steel, and wearing apparel industries. There
was little change in employment in railroad car shops, and in cotton and
silk mills, while in the automobile. meat packing, and paper and printing
industries working forces were increased slightly. In early January, following year-end inventory periods, reports indicate increased employment in
certain industries, particularly automobiles, steel, and railroads.
DISTRmUTION
Sales of department stores increased in December by slightly less thnn
the amount which is us ual for the holiday season, according to preliminary
reports to the Federal Reserve Banks. In December, as in earlier months of
the year, the volume of sales probably reflected the influence of declining
r etail prices. Distribution of commodities by freight s howed a further decline for the month of December as a whole. Value of American exports to
foreign countries was smaller in December than in November, and approximately 85 per cent below that of December, 1929, the decrease reflecting in
part the decline in wholesale prices.
WHOLESALE PRICES
Wholesale prices of commodities declined sharply in the first half of
December, while in the following four weeks average fluctuations were
relatively small. For the month of December as a whole, there were large
decreases in prices of corn, hogs, cotton, hides, and lumber, while prices of
wheat, beef, and silk averaged somewhat higher than in November. During
the first two weel{s in January. prices of corn, Bugar, and s ilk increased,
and the price of wheat in American markets remained fairly stable. Silver
prices reached new low levels.
BANK CREDIT AND MONEY RATES
Loans and investments of reporting member banks declined in the fourweek period ending January 14, reflecting further liquidation of security loans,
as well as a reduction in "all other" loans and in investments. Changes in
the position of Reserve banks in recent weeks reflected largely changes in
the demand for currency. In December, this demand increased more than is
us ual for the season, owing to the withdrawal of cash by banks and by
the public in districts where there were important bank failures. In the
two weeks after Christmas the return flow of currency from circulation
was smaller than the us ual seasonal amount and the result was that money
in circulation, which during the larger part of 1930, had been in cons iderably
smaller volume than in 1929, in January, 1931. was above the level of a
year ago. In the following two weeks the return flow of currency was
somewhat larger than usual, indicating a return of part of the extrn currency which had been called into use in December. Money rates in the open
market continued at low levels during December, and declined further in
the first half of January. The discount rate at the Federal Reserve Bank
of New York was reduced to 2 per cent on December 24, and in the
following three weeks the rate at the Federal Reserve Bank of Boston was
reduced to 21h per cent, and rates at the Federal Reserve Banks of Cleveland, St. Louis, Chicago, Atlanta, and San Francisco to 8 per cent.
