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~ MON1HLY BUSINESS REVIEW ~
n
OF THE
n
~
FEDERAL RESERVE BANK OF DAlLlAS
U
n
~
C.C. WALSH
Chairman and Federal Reserve Agent
•
CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents
n
U
I~
~K:::::x»<=:::::>l»<=:::::>l»<=:::::>l»<=:::::>l»<=:::::>l»<=:::::>l»<:::::::X»<=:::::>l»<:::::::X»<===X»<:::::::Xsc=')ld
~I
~urne
(Compiled January 15, 1932)
Dallas, Texas, February 1, 1932
16, No. 12
'J?his. cOP:( is rele~sed for pubhentlon In mornlng papers
January 31
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
-
Change From
November
December
1031
B;;;k debits ......... .. ..... .... ... .(at 17 .
to individulII aocounts
DOlties) ....
......
ItoPartmcnt store .ales ... . .. . .............. .
escrvc bank loane to momber banks at end
ll.~fmonth . . ................... . ......... .
n .crve bank ratio nt end of month ......... .
CUdding permit valuation at larger centers ... .
Cornmeroinl faihlres ~nUmber) ... ....... ..... .
O~mmereial failures liabilities) ... .. . .. ..... .
...!...E:..cduetion (barre .) ........ . ... . . . ..... .
$626,484,000
S 10,401,514
62.2%
S 1,608,781
134
S 2,865,202
30,722,400
+ 13 .6%
+ 52 .0%
-
50 .0%
+ 10 . 1 points
30 .0%
+ 30 . 1 ~
+ 37 . 0'10
-
2.3%
Ii' Mixed trends in business and ~ndustry i~ the Eleve~th
ederal Reserve District were in eVIdence durmg the closmg
~onth of 1931. Sales of department stores in larger centers
NAected a larger than usual seasonal increase between
O\1ember and December, and the decrease from the correSPonding month of a year ago was smaller than in the three
preceding months. While a stronger consumer demand for
llIel'chandise in certain rural sections necessitated frequent
reorders in some lines of wholesale trade, the desire of
retailers to close the year with small inventories reduced
~urchases at wholesale to a minimum in the normal~y quiet
Onth. Wholesale distribution reflected a substantIal sea:~dal decline from the previous month, and continued conerably smaller than a year ago.
i ~t the year-end there was an increase in business failures
o~ ~hlS district. Both the number of fail~res and ~he amount
c Indebtedness involved showed a conSiderable mcrease as
~lDpared to the previous month, and the corresponding
onth of 1930.
~holesale
The agricultural situation has been greatly improved by
the widespread rains during December and early January,
which placed a deep subsoil season in the ground in all
sections of the district. While land preparation is behind
schedule in some areas, this handicap can be overcome in a
short time with the advent of dry weather. Stimulated by
ample moisture and moderate temperatures, small grains
have grown rapidly and are mostly in good condition. Vegetable crops have likewise maae good progress. Weather and
moisture conditions have been favorable for ranges and livestock, and animals are going through the winter in good
condition. In most sections there is ample feed available for
livestock at a low cost. Livestock prices have continued
downward.
Construction activity reached a new low level in December. The valuation of permits issued at principal cities reflected a substantial decline as compared with both the previous month and the corresponding month of 1930..
BUSINESS
A further recession occurred in the distribution of merchandise through wholesale
b
channels in the Eleventh District during
• c,,:celllber, as evidenced by the fact that all reporting line.s
Ou Cpt hardware reflected material decreases from the prevIde S ,lDonth. As compared with December, 1930, there were
to ~~nes ranging from 13.1 per cent i~ the case of dry. goods
ted .7 per cent in the case of farm Implements. While the
eh uced sales volume was to a large extent seasonal, being
to ba~teristic of the year.end period, other factors operated
rIng about a more pronounced decrease in some lines
rade
The loans of reserve city banks reflected a steady decline
during December, but their investments were increased by a
substantial amount. Federal Reserve Bank loans to member
banks ran off rapidly during the final two weeks of the year,
but the first half of January witnessed a gradual increase in
these loans, with the result that the total on January 15
amounted to $16,572,000, or only $3,078,000 less than a
month earlier. On the corresponding date last year these
loans totaled $5,021,000. The combined net demand and time
deposits of member banks averaged $677,029,000 in December, which was $10,669,000 less than in November, and
$132,994,000 below December, 1930. The latter comparison
was more favorable than in the two precedin~ months.
than is usual in December. Business was retarded by somewhat excessive rainfall, and by the evident intention of merchants to keep their inventories at the lowest practicable
level. Aggregate sales during the last half of the year, as
compared with the same period in 1930, reflected declines
varying from 15.9 per cent to 58.1 per cent. In the case of
all lines except hardware, the December volume of collections was seasonally smaller than that of November.
A material shrinkage, which is usual in December, was
reflected in the demand for dry goods at wholesale in this
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
district. The month's business was 45.8 per cent under the
November volume, and showed a decrease of 13.1 per cent
as compared with December, 1930. Inventories at both
wholesale and retail establishments were comparatively
small at the year-end; thus any improvement in consumer
buying will be reflected in wholesale distribution. Collections showed a seasonal decline from the previous month.
corresponding month in 1930 was slightly more favorable
than in November. Business during the month of December
was 80.7 per cent less than a year ago, and for the period
from July 1 to December 31 reflected a reduction of 58.1
per cent from the total of the same period in 1930. December witnessed a partly seasonal decline in collections.
A further decrease, in part seasonal, was registered in
the distribution of drugs at wholesale during December.
Total sales of reporting firms during the month were 9.1
per cent less than in November, and showed a reduction of
20.2 per cent as compared with December, 1930. Business
during the last half of 1931 was on a scale 17.4 per cent
smaller than in the same period in 1930. While collections
declined 8.8 per cent as compared with November, there
was a corresponding reduction in the volume of accounts
outstanding.
CONDITION OF WHOLESALE TRADE DURING DECEMBER, 1031
Porcentage of inorease or deorease in-
The demand for hardware in this district during December was somewhat spotty, being fairly strong in several sections but slow in others. Sales were 0.2 per cent higher than
in November, but 24.9 per cent below the volume of December, 1930. The dollar volume of distribution during the last
six months in 1931 reflected a decrease of 29.2 per cent as
compared with the same period in the previous year. December collections were 2.0 per cent larger than the total in
November.
Reflecting in part the disposition of retailers to maintain
their stocks at a minimum until after inventory time, the
business of wholesale grocery firms in December declined
18.3 per cent from the previous month, and was 16.7 per
cent below the volume of the same month a year ago. Inventories on the last day of the year were 7.7 per cent smaller
than at the close of November, and 20.0 per cent less than
on December 31, 1930. Prices showed a further downward
tendency. The amount of collections was 2.6 per cent below
that of November.
While a fUlther decrease of 21.2 per cent, contrary to
seasonal trend, was reflected in the sales of wholesale farm
implement firms during December, the comparison with the
Net Sales
Net Sales
Stooks
Ratio of ce\lcoDoo., 103 1 July 1 to date Deo., 1031 tions during Dco.
compared with compared with oompared with to acoounts and
Deo. Nov. same peried Deo. Nov. notes outstanding
1930
1031
last year
1030 1031 on Novomber 30
Groceries .........
Drygncds .... ....
Farm implements..
Hardware ........
Drugs .... .. .... ..
- 16 .7
- 13 . 1
-SO. 7
-24.0
-20.2
- 18.3
-45.S
-21. 2
+.2
- 0.1
- 15.0
-23. 1
-5S. 1
-29.2
-17.4
-20.0 - 7.7
--37.6 - 11.7
- 14 .5 - 1.0
-14.7 - 2.0
Retail
Trade
The volume of merchandise distribution
during December at department stores .in
principal cities of the Eleventh DistrIct
reflected a larger than usual seasonal increase over the
previous month, and while a further recession was evidenced
as compared with the corresponding month of 1930, the comparison was again more favorable than that a month
earlier. December sales of merchandise were 52.9 per cent
above those in November, but 20.5 per cent less than in the
final month of 1930. Although the dollar volume of sales
during the entire year of 1931 showed a decline of 16.7 per
cent from that in 1930, the recession in the general price
level was a factor of considerable importance.
The desire of merchants to close the year with as small
a carryover as possible resulted in inventories held on De·
cember 31 being the lowest for that month in many years.
Stocks were 23.4. per cent less than those a month earlier,
and 19.3 per cent below a year ago. The rate of stock turnover during 1931 was 3.02, as against 3.11 in 1930.
Collections reflected a small increase during the month,
TIle ratio of December collections to accounts receivable 011
December 1 was 33.1 per cent, as compared with 32.0 per
cent in November, and 32.8 per cent in December, 1930.
BUSINESS OF DEPARTMENT STORES
Total Sales (Peroentage):
Dooember, 19S1, compared with December, 10S0 .. .... ... ..... ... .. . .. ....... ....
December, 1931, eompared with November, 1031.................................
January 1 to date, compared with same period last year ...........................
Credit Sales (Pereontage) :
December, 1931, eompared witb December, 1030 .................................
Deeember, 1031, enmpared with November, 1031. .... . .......... ... ..•.. ... ......
January 1 to date, compared with same period last year ...........................
Stooke (Percentage):
Dooember, 1931, compared with December, 10S0 ..............................•..
Deoember, 1031, oompared with November, 1931. ................................
Stock Turnover ~Rate):
Rate of stoo turnover in December, 1030 .......................................
Rate of stock turnover in Deoember, lOBI .......................................
Rate of stock turnover January 1 to Deoember 31, 1030 .... ...... . ......... ... ....
Rate of stook turnover January 1 to Deoember 31, 1031 ...........................
Ratio of December collections to accounts reoeivable outstanding Deoember I, 1031 ... . ,.
61.7
2S.4
3.0
34.3
35.0
-
Dallas
Fort Worth
Houston
San Antonin
Otbers
Total District
- IS.S
+52.5
- 15.6
- 10.7
+70.0
-14.1
-22. 1
+45.1
-17.7
- 25.0
+41 .9
-IS.2
-IS.1
+5S.1
-IS.S
-20.5
+52.0
- 16.7
-20.5
+41.0
-IS.0
-19.0
+68.0
- 14 .1
-21.S
+37.2
-17.3
-20.2
+35.0
-IS.6
-IS.S
+50.3
-10.5
-21.6
+44 .S
-17.6
-10.0
-20.8
-17.6
- 30.8
-13.0
-20.6
-34.9
-23.6
-15.S
-23 .0
-10.3
-23.4
.41
.42
3.23
B.lO
34.3
.3S
.3S
2.52
2.40
30.4
.45
.40
3.24
3.0S
35 .7
.51
.53
4.11
3.09
29.7
.40
.30
2.69
2.74
a3.5
.42
.42
B.11
3.02
33.1
n:
According to figures compiled by R. G. . compared with 103 insolvencies in the preceding on:;
Dun & Company, both the number and with an indebtedness of $1,726,474, and 88 defaults In 10'
Failures
liabilities of defaulting firms in this dis- closing month of 1930, with liabilities totaling $1,925,,~ rtrict during December were larger than in either the previnSI
ous month or the same month a year ago, the gain over While the business mortality rate during 1931 was co e I
ol ll
November being largely of a seasonal nature. There were ably higher than in 1930, the average liability of ins l'e
134 commercial failures in December, owing $2,365,202, as firms showed a substantial decrease.
Commercial
MONTHLY BUSINESS REVIEW
3
AGRICULTURE
Crop Canditions
The heavy and protracted rainfall in ago. Heavy shipments of grapefruit are still in progress, and
practically all sections of the Eleventh the total forwardings for the current season show a large
District during December and the first increase over the previous season.
half of January left a good season in the ground, but has
delayed the preparation of the soil for spring planting. Over Texas Crop Pro- According to the report of the Departconsiderable area of the district land preparation is be- • duction increased, ment of Agriculture, the production of all
md schedule. Temperatures so far have been very mild values decreased important crops in Texas during 1931
was greater than in the previous year due
OVer most of the district, and cold weather is needed to
to the large per acre yield and the larger acreage planted to
)ulve~ize the soil and kill insects. Small grains throughout
~~ .dIstrict are reported to be in generally good condition. crops other than cotton. Weather conditions throughout the
season were very favorable to most crops. The heavy winter
tV nIle conditions in most sections prior to October were
bnfavorable for preparation, sowing, and growth, they have rainfall supplied a deep subsoil season, while the belowbeen very favorable since that time, as temperatures have normal precipitation during April, May, and June furnished
favorable weather for the harvesting of small grains, and the
ee~ moderate and rainfall plentiful. The Department of
~gnculture estimated the area sown to winter wheat in planting and early cultivation of row crops. In July, the
3 ~l{as during the fall of 1931 as 3,768,000 acres, as against critical month for most row crops, rainfall was again above
t' O~,OOO acres in 1930, and 3,606,000 in 1929. Acreage sown normal and this was followed by a period of dry, hot weather, which was ideal for the ripening and harvesting of most
.0 Wmter wheat in Oklahoma was reduced 13 per cent, and
Arizona 17 per cent. There was no change in acreage in crops. The favorable season enabled farmers to do much of
ew Mexico. The December 1 condition of the Texas wheat the cultivation and harvesting with family labor, thus reduccro phwas 83 per cent of normal as compared to 88 per cent ing the cash outlay for labor. On the other hand, the value
of crops produced in Texas (on the basis of December 1
on t at date in the previous year.
prices) reflected a further sharp decline as compared to the
v Moisture and temperature conditions were excellent for previous year. Every crop of importance, except wheat, had
egetable growth in Texas during December and early Janu- a lower value in 1931 than in 1930. In the case of wheat the
ary, and the Department of Agriculture reported that the higher value was due entirely to the exceptionally large
cond o.
r Ihon of vegetable crops improved. Beets, cabbage, car- crop, as the price of wheat declined along with other combot~,. onions, and turnips made substantial gains, and straw- modities. The hypothetical value of all crops in the State
l' eines Were reported to be 3 points above the high condition
was estimated by the Department of Agriculture as $297,Po1'ted a month earlier. Soil conditions are excellent in 281,000, as compared to $402,002,000 in 1930. The greater
~vegetable areas of the State for the preparation, planting, diversification during 1931 was indicated by the fact that
~n starting of such crops as snap beans, Irish potatoes, and acreage planted to practically all crops, except cotton,
i Ol'llhtoes . The acreage planted to most crops is smaller than showed an increase as compared to the previous year. Due
l~ t e p.revious season. Shipments of most crops continue to the increased acreage, excellent per acre yield, and the
rrvy WIth cabbage, spinach, and mixed vegetables leading. larger volume of home canning, farmers are well supplied
c °bb the current season to January 16, shipments of beets, with food and feed for the current year, and should be able
~ age, cauliflower, greens, and mixed vegetables were to hold to a minimum the cash outlay for the cultivation
~h~atly in excess of those during the previous season. The of 1932 crops. Reports indicate that the program of diversiIPl'llents of spinach were considerably smaller than a year fication will be extended this year.
h
'
N
ai
~OMPARATIVE PRODUCTION AND VALUE OF TEXAS FARM PRODUCTS AS COMPILED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE
VALUE
QUANTITY
COMMODITY
c-c
~~l";::
w
o
B
G
ll.
11
B
)~:~:~~ .:~d. ~i~d)... '. '. : : : : : :
1
PotntoCfl ~w ltel .. .. .... .... ..
Pcanuta sweet ...... . . .....
T
.... ... ... ..... .... ..
1931
6,270,000 bales
94,248,000 bushols
57,433,000 bushels
59,976,000 bushels
6,194,000 bushels
60,000,000 bushels
10,441,000 busbels
780,000 tOllS
1,600 tons
4,SOI,000 bushols
4,068,000 bushels
106,530,000 pound.
1930
4,038,000 'bales
74,144,000 busbel.
31,804,000 busbels
33,864,000 bushels
2,760,000 bushels
36,030,000 bushels
0,700,000 bushels
645,000 tons
1,400 tons
4,788,000 bushels
3,200,000 bushels
80,510,000 pounds
(Bll8oo on Deoember 1 Farm Prloe)
Inoreaso or DoorOll8e
in Quantity
+ 1,232,000 bales
+20,104,000 bushels
+26,629,000 busbels
+26,112,000 busbels
+ 2,434,000 bushols
+24,070,000 bushels
+ 732,000 bushels
+ 135,000 tons
200 tons
+
+ 103,000 bushels
+ 1,678,000 bushels
+26,020,000 pounds
~~lv~i;!V~r ~W~~p;.: ::::: : : : ::::: : :::: : ::: : :: : :: : : :: :: : :::: :::::: :: :::: :: : : : :: :: ::::: : : :::: :: :
11
Livestoclc
There is ample moisture over the range
bist '
territory in the Eleventh Federal Reserve
larg l'lct hdue to the heavy general rains in Texas, and the
Ace e: ~ an usual snowfall in New Mexico and Arizona.
are or dIng to the Department of Agriculture feed conditions
Ne\~eneraUy good in Texas, and are better than a year ago.
field grass has started in some areas but is short. Wheat
s are furnishing considerable pasturage, and the large
Inoreaso or Doorease
In Valuo
1931
1930
$144,926,000
30,169,000
23,648,000
11,096,000
1,606,000
17,400,000
6,360,000
6,907,000
66,000
3,013,000
2,081,000
2,131,000
SI89,786,000
64,126,000
22,263,000
14,223,000
1,618,000
23,364,000
7,670,000
7,831,000
105,000
7,182,000
3,126,000
2,818,000
+
-
$250,990,000
$297,281,000
$334,001,000
$402,002,000
- $ 83,011,000
-$104,721,000
- $ 44,861,000
23,966,000
1,286,000
2,228,000
12,000
5,054,000
1,301,000
1,834,000
3C,000
3,269,000
145,000
687,000
available supply of grain sorghums and other feeds is being
used for feeding livestock where grass is short. Range conditions are likewise good in Southern New Mexico and
Southeastern Arizona. The Department reported that livestock on Texas ranges are in good condition, as weather has
been mild and feed supplies ample, and should be in good
flesh next spring if the winter is not severe, While livestock
are still in good condition in New Mexico and Arizona,
-------------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW
4
--------------------------------------------------------------------------------------------------there has been considerable shrinkage due to the abnormal
temperatures.
The Department of Agriculture estimated that the condition of ranges in Texas was 78 per cent of normal on January 1, as compared to 77 per cent a month earlier, and 76 per
cent a year ago. The condition of cattle was unchanged from
December 1, and that of sheep rose 1 point. The condition
of both ranges and livestock declined somewhat during December in New Mexico and Arizona.
There was a general decline in the receipts of livestock at the Fort Worth market during the month of December. The
December receipts of cattle, calves, and sheep showed a
substantial decline as compared to the previous month, and
the corresponding month of the preceding year. While the
arrivals of hogs were larger than in either comparative
period, they continued in generally small volume.
Movements
and Prices
st.re.n?th. The best gains have been marked up in the calf
dIVISIon. The demand for hogs has continued weak, and
prices have remained at low levels.
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Cattle .......... .
Cllives ........ . .
Hoga .... .. ... .. .
Sbeep ........ . . .
Deoember
1931
44,101
10,320
18,000
25,204
-
December Ch.nge over November Change over
month
1931
1930
year
- 4,021
48,122
48,598
- 4,497
-22,105
- 11,283
38,401
27,009
+ 2,102
10,800
+ 1,134 15,808 -38,044
03,908
29,059
- 3,795
COMPARATIVE TOP LIVESTOCK PRICES
(Dollara per hundred-weight)
December
1931
SO .05
6.00
4.25
4.00
6.65
6.05
3.25
4.76
During the third week in December prices on all classes
of livestock reflected a sharp decline despite small receipts,
and outlets were generally very unsatisfactory. While prices
have rebounded somewhat from the low levels registered
during that period, the market has not shown any material
Deoember
1930
$11.25
7.75
6 .35
5.36
8.60
8.40
5.50
7.00
-
November
1931
57.50
5.50
4.25
4.25
6.25
6.86
3.60
5.75
FINANCE
Operations 0/
the Federal Reserve Bank
Federal Reserve Bank loans to member
banks, which stood at $19,650,000 on
December 15, declined rapidly during
the succeeding two weeks, and amounted
to only $10,402,000 at the close of the year. After the turn
of the year, however, the demand for reserve bank funds
was again in evidence and loans had risen to $16,572,000 at
the middle of January. Between December 15 and January
15, reserve city banks reduced their borrowings at the Federal Reserve Bank $4,608,000, while country banks increased
their borrowings $1,516,000. The Federal Reserve Bank's
holdings of bankers' acceptances purchased in the open market were reduced from $8,025,000 on December 15 to $3,131,000 on January 15, but its investments in United States
securities were increased $3,762,000 during the same period.
The reserve deposits of member banks ~otaled $48,510,000
on January 15, as compared to $50,368,000 on December 15,
and $57,607,000 on the corresponding date last year. Federal
reserve notes in actual circulation amounted to $45,572,000
at the middle of January, which was $2,373,000 smaller than
thirty days earlier, but $15,728,000 larger than a year ago.
CONDI'J'ION OF THE FU:OERAL RESERVE DANK
(In tbousanda of dollara)
Total cash rcaerves ......... . ....... . .... .
Diaeount~ for member banks .. ......•. . ....
Other billa disoounted ........... .... ..... .
Dilla bought in Opell market . ......•... . ...
United States aeeurities owned .. . .. . ... . •..
Other investments .. . . ........... ... ..... .
Total earning nasels ... . ................. .
Member b.nk reserve deposits .. . ... . ..... .
Federal reserve notes in notual eiroulation .. .
Condition 0/
Member Banles
in Selected
Cities
Jan. 15,
1932
S 50,945
10,572
1
3,131
20,803
5
40,572
48,510
46,572
Dec.16,
1981
$ 58,101
19,650
15
8,025
26, 101
7
53,798
50,368
47,945
Jan. 15,
1931
S 54,830
5,020
securiti.es $10,171,000, and of. other securities $15,000. .A~
compaled to a year ago total mvestments were $27,645,00
larger. Loans on securities declined $463,000 between . oed
cember 9 and January 6, and "all other" loans dechne
$15,531,000. Total loans, which stood at $272,560,000.OJl
January 6, were $48,14,1,000 less than on the correspondln~
date in 1931. Net demand deposits of these banks amo unte
to $24.5,221,000 on January 6, which represents a declj~~
of $9,581,000 from those four weeks earlier, and $22,891,0
as compared to January 7, 1931. Time deposits showed are·
cession of $4,255,000 during the four-week period, and were
$16,704,000 lower than a year ago. The borrowings of these
banks from the Federal Reserve Bank totaled $5,363,00 0
January 6, as compared to $10,677,000 on December 9, all
$1,140,000 on the corresponding date a year ago.
°d
CONDITION STATISTICS OF MEMDER BANKS IN SELECTED CITIES
(In thousands of doliars)
Jan. 0,
1932
United States seeuritica owned .... . ...... . .
All other atocke, bonds, and aeouritica owned.
Loans on 8ecurities . ........ . . .. .. .. .. . .. .
All otber loana. . . . . . . . . . . . . . . . . . . . . . .. ..
Totnlloans .. ...... .... ............... : . .
Net demand depasi ts ............... .. ... .
Time deposits ............... . . . ......... .
Reserve witb Fede,"l Reserve Bank. . . .
Dilla payable and rediseounl6 with Federal' .
Rcaerl'e Bank . ........................ .
2
6,831
29,437
7
40,207
57,607
29,844
A further decline in the loans and deposits, but a substantial increase in investments, was reflected in the reports of
member banks in selected cities for the
four weeks ending January 6. During this
period the banks increased their holdings of Government
Deposits of
Member Banks
S 82,0~0
00,625
79,507
103,053
272,560
246,221
130,871
28,707
6,363
----
288,654
254,802
136,126
30,123
Jan. 7,
19S)
S 63,259
52,670
04,170
220,525
320,7n
268,1
147,575
32,899
10,677
1,140
Deo.O,
1031
S 72,778
00,610
70,070
208,58~
0;;::
While the combined daily average
demand and time deposits of IIle be!
banks in this district during DeceJ1l the
was $.1O,669,0?0 smaller than in the previous IIlondl'The
receSSIOn was In large part due to seasonal influences.. sl
combined average amounted to $677,029,000, as aglllJlgs
$810,023,000 in December, 1930, but this comparison The
more favorable than that of October or November'r bl
time deposits of reserve city banks reflected a further s 19
increase.
--------------------------------------------------------------------
_______________________
M_O_N_T_H_L_y B_D_S_IN_E_S_S R_E_V_IE W
__
__
_ ______________________~5
it was $191,001,000 less than that of December, 1930. All
seventeen cities participated in both the gain over the preceding month and the decline from a year ago.
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
-
Combined Total
Reserve City Banks
Country Banks
Net demand Time Net demand Time Net demnnd Time
deposita depcsita deposita depcsita deposits depcsita
Deo., 1030 ..... . M74,004
In
F b 1931.... .. 605,388
"
198 1.... .. 676,803
567,468
567,009
ay, 1031 ...... 563,222
J une, 1931
July, 1031· .. · .. 543,155
Aug., 1031·· · ·· · 637,233
~Pt. , 103 1.... .. 523,797
ct., 193r' .... · 508,850
487,3 14
~ov., 108 1::::: : 483.079
co., 1931. . .... 474,935
M.,
~~ii: :~~L :: : ::
,235,119
232,966
236,250
234,767
234,141
233,653
23 1,880
225,928
222,206
215,074
202,524
203,71 9
202,094
$262, 124
258,313
264,844
263,123
269,207
207,010
254 ,063
257,244
255,584
242,731
232,544
231,9 19
220,397
$139,900 $312,780
141,257 307,076
143,681 311,059
143,080 304,346
142,589
297,802
140,362 290, 212
139,800
289,092
135,409
279,989
133,568
268,213
129, 11 6 266,119
110,826
254,770
121,817
252,060
122,674
248,538
Acceptance
Acceptances executed by banks in this
Marleet
district, and outstanding at the close of
a
December, reflected an increase over those
~ lllonth earlier. The total amount reported on December 31
V $4.,294,,244., as against $4,04.8,924 at the end of the
as
~revious month, and $6,521,161 on the same date a year
ti~o'h~he volume of acceptances executed against the domesa s Ipment and storage of goods amounted to $3,423,360,
gn~ Jhose based on import and expOlt transactions aggrea e $870,884,.
Debits to
Debits to depositors' accounts at banks
Individual
in principal cities in the Eleventh Federal
Accounts
Reserve District during December reflecta
ed a seasonal increase of 13.6 per cent
s~ clllllpared to the previous month, but were 23.4, per cent
rn a er than in the same month a year ago. While the
~th's volume was $75,073,000 above the November total,
-
DEBITS TO INDIVIDUAl. ACCOUNTS
(In thousands of dollars)
S96,219
91,700
92,569
91,687
01,652
03,201
91,090
90,429
88,698
86,858
82, 698
81,002
79,420
December
Abilene ....... ..
Austin ........ . .
Beaumont .. . ... .
Corsicana . . .....
Dallas ... ...... .
Ell'aso ..... . .. .
Fort Worth ......
Galveston ..... ..
Houston ..... . ...
Port Arthur .....
Roswell .........
San Autonio .....
Shreveport . .... .
Texarlmna" ......
Tueson ..........
Waco .. . . ... . . . .
Wiohita Falls ....
1931
S 5,290
16,389
19,404
5,295
181 ,133
20,336
71,408
27,631
142,580
7,1 09
2,589
56,006
26,772
7,447
10,863
13,941
11,331
Peroontnge
Percentage
December chango over Novomber ohange over
year
1930
1031
month
-32.2
$ 5,252
S 7,805
+ .7
19,002
24,781
5,860
228,246
32,948
84,619
34,268
198,511
0,496
4,559
82,080
30,735
10,684
13,021
16,524
19,546
- 13. 8
-21.7
- 0.6
-20.6
-38.3
- 15.5
- 19.4
-26.3
-24.6
-43.2
-31. 4
- 12. 0
-30.3
- 16.6
- 10 .2
-42. 0
15,994
16,514
3,366
167,206
18,237
62,288
24,416
126,928
6,331
2,387
47,150
25,718
6,676
9,537
13,335
10,078
+ 2.5
+17 .5
+57 .8
+ 15.2
+ 11 .5
+ 14. 6
+13.2
+12.3
+ 13.2
+ 8.4
+20.7
+ 4.1
+ 11 .6
+1 3. 9
+ 4. 5
+12.4
-23.4
5551,411
Total. . ..... S626,484
$817,485
+ 13 .6
"Inoludes tho figures of two banks in Texarkana, Arkansas, leoated in the Eighth
District.
Despite a small reduction during December in the amount of savings deposits
reported by 74 banks in the Eleventh District, the comparison with the corresponding date a year ago
was somewhat more favorable at the close of the month than
it was on the last day of November. The total amount on
record December 31 was $129,904,292, as against $130,866,090 a month earlier, and $150,385,927 on the final day
of 1930. The cities of Houston, Port Arthur, Shreveport, and
Waco showed increases over the previous month.
Savings
Deposits
SAVINGS DEPOSITS
~~;::Ollt ............. . ..
Fort 'V~rth : . . .. . .•... ... ..
Galvest
............. ..
Boust en . ...... . .. .. .... .
Port A'r~i.;;r· .. . .. . •.. ......
San At · .... .. ....... ..
Sbrev n 0 01 0 .. . ... .. ...... .
\V nco eport .............. ..
\Viohit~
'F,;li ........ .... .. .
AU others .. ~:::::
: ::: :: : ::
Number of
Reporting
Banks
4'
4
4
3
10"
2
5"
4
3
2
33"
December 31, 1931
Number or
Amount of
S.wings
Savin\!B
De(106itors
Dopcslta
5,557
62,535
34,496
12,643
61,1 67
4,543
11,762
25,1 87
10,312
3,053
37,864
$ 2,002,645
23,1 67,422
11,369,981
7,923,736
32,644,647
1,821,787
14,160,893
12,083,922
5,801,989
1,136,878
17,100,393
December 31, 1930
Number of
Amount of
Savings
Savin\!B
Depcsitors
DepOSIta
6,751
64,109
32,752
12,839
71,335
4,820
14,521
25,018
10,518
3,710
39,764
Percentage Change
Over Year in
Savings Deposita
$ 2,632,198
November 30,1931
Number of
Amount of
Savings
Savin\!B
Depositors
DepOSIta
5,639
62,616
34, 793
12,768
01,623
4,671
11,772
25,278
10,009
3,019
38,541
- 1.1
- 15. 0
- 3.5
- 1.7
- 7.8
+ 5. 4
-25. 9
- 18.0
- 15 .9
-25. 9
- 19 .1
27,268,242
11,783,010
8,064,239
35,392,358
1,728,236
19,108,455
14,727,547
7,007,836
1,533,762
21,140.044
Percentnge Change
Over Month in
Savings Depcsita
$ 2,618,361
.6
23,372,363
12,560,641
8,108,937
32,555,270
1,800,921
14,225,916
11,051,860
5,699,578
1,1 76,881
17,686,363
Total. . .. . . . . . . .
74
269,109
$129,004,202
286,046
$150,385,927
- 13. 6
270,629
'Only 3 banks in Beaumont, 9 in Houston, 4 in San Antonio, and 29 in "All others" reported tho number of savings depositors.
S130,866,090
.0
- '9.6
- 2.3
.3
+
+ .7
.5
+ 9. 3
+ 3. 4
- 3.4
-
-
3.3
-
.7
~ .::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::.
-
Prevailing R.ctcs :
JANUARY DISCOUNT RATES
Dallas
EI Paso
Fort Worth
Houston
6-8
5-6
4-8
6- 6
5-6
4* 6
6
6
6Yr6
6-8
6-8
6-8
6-8
6-8
6-8
5-7
6-7
6)1;-6
6-8
6-8
6-7
0- 8
7-8
6-8
6-8
5- 7
7
San Antonio
Waco
----:~~-------------------------------------I---------I---------I---------I---------I--------1--------nater~.arged customers on prime commercial paper such as is now eligihlo for
nate ehlso0'dnt under the Federal Reserve Act ................... .. ............ . .
Ilate 0 a go on loans to other hanks scoured by biUs reoeivable .... . ... . ......... .
i II qallS secured by prime stock exchange or other current eollnteral (not
nclu~lDg leans placed III other marketa through correspondent banks):
l
llnte ob 'r i~"c~n.d..... .... ::: :: :: : :::::: : :: : :: : : : :::::::::::::: :: ::: : : : : :: :::: : :::
'
Illite On nrg~ I en commodity paper secured by warehouse reeoipw, etc... .. .. . .. . ... .
~te loalls . . ................................. ... .... . ............ . ..
~
~ottonseed
5-7
5-8
5- 6
5-7
8
6-8
6-8
INDUSTRY
Further seasonal declines were registered
during the past month in the operations
of cottonseed oil mills in both Texas and
the D .
Dlted States, but, with the exception of seed receipts
roducts
4~-6
5- 6
and the production of linters at the latter mills, activities
were above those in December, 1930. During the first five
months of the present cotton season the receipts of cottonseed were considerably in excess of those in the same period
-------------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW
6
--------------------------------------------------------------------------------------------------------of the 1930-31 season, and at Texas mills the crushings of
seed, production of oil, cake and meal, and hulls reflected
an increase. Supplies of cottonseed on hand at the close of
the month continued large, with stocks of crude oil and hulls
exceeding those a month earlier and a year ago. Inventories
of cake and meal, and linters showed a decline from those
held on December 31, 1930.
STATISTICS ON COTTONSEED AND COT'rONSEED PRODUCTS
TexlIB
United States
August 1 to December 31 Aug\lst 1 to Deoember 31
This SellBon LlIBt SCllBon This Scoson LlIBt Season
Cottonseed reeoived at mills
4,081,478
4,348,186
1,136,307
1,412,254
(tons) .. . .... .. ..... . ......
2,057,067
3,135,430
887,430
084,614
Cottonsced crushcd (tons) .....
1,400,325
001,464
265,671
441,133
Cottonseed on hand (tons) .... .
Crude oil produced (pounds) ... 200,668,303 258,518,514 919,515,410 944,531,884
1,4 14,535
1,324,769
417,805
458,780
Cake and meal woduced (tons)
869,339
248,048
829,665
284,437
Hulls produced tons) ...... . ..
Linters produced (running
543,282
130,091
465,346
127,860
bales) ... . ............... · .
Stocks on hand December 31:
Crude oil (pounds) .......... . 32,026,871 23,242,017 81,106,132 75,665,661
200,034
70,430
202,406
51,017
Cake and mcol (tOllS) . . ... ....
226,740
173,408
72,115
06,868
Hulls (tOIlB) ...... . .. .. . .....
316,738
02,241
289,560
82,860
Linters (running bales) .... ....
The December reports of Texas textile
mills indicated that operations were on a
scale slightly above that a month earlier,
and that activities continued above those a year ago.
Orders for products held at the close of December were
greater than those on hand a month earlier, but were again
below those of the same date last year. Inventories of finished
products on hand at the end of December were also larger
than those held on November 30, but smaller than a year ago.
Textile
Milling
The consumption of cotton during December at all
United States mills aggregated 415,517 bales, which represents a small seasonal decline of only 3.1 per cent from the
428,870 bales consumed during November, and a.n increase
of 2.6 per cent over the 4.05,158 bales consumed III the corresponding month of 1930. Consumption of raw cotton for
the period from August 1 through December 31 continued
substantially above that in the same period of the previous
season. Stocks of cotton held by consuming establishments
on December 31 were above those a month earlier, but were
slightly smaller than a year ago.
1 through December 31, continued favorable as compared
with the same period of 1930, receipts being slightly greater
and exports showing an excess of considerable size. Stocks
of cotton held at the close of December reflected a redu c.
tion from those a month earlier, but were considerably
above those of last year.
Total foreign exports of cotton during December froIll
all United States ports continued at a high level. A sub·
stantial increase of 10.3 per cent was registered over the
previous month, and the material increase of 54.2 per cent
was evidenced as compared with the corresponding month
of 1930. Ther? were 1,181,089 ba~es exported during t5h~
month, as agamst 1,070,643 bales m November, and 76 1
835 bales in December, 1930. During December for the first
time this season aggregate foreign exports of cotton. eJ('
ceeded those of the previous season. Takings of AmeflcaJI
cotton by Italy, Japan, China, and several of the smaJler
European countries were very heavy during the month~
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
~~~~f~s:::::::::::::::::::: :
Stooks, Decomber 31. ........ .
December
1031
311,078
351,508
~
COTTON-GALVESTON STOCK STATEMENT
(Bales)
For Great Britain . ... . . ............ .. ..... . .. . ...... .
For France .. .. . . .. .... .... ... . ... .. .............. . . .
For other foroign ports . .............. . .. .... ... .. .... .
For oOllBtwise ports ... . ...... . . ..... .. . .... ... . .. .... .
In oomprcases and depots ................ . ......... ... .
Dec.3 1,
1931
4,000
4,000
52,700
2,000
860,814
Total. . ...... .. .......... . ........ .. .. . .
923,514
t~~f~:::::::::::: :::::: :::
December
1931
318,432
417,310
December
1930
277,813
251,219
December August 1 to December 31
This Season Lnst SellSon
1080
415,517
405,158
1,799,705
7,904,265
2,105,085
2,010.133
1,630,548
1,655,537
10,425, ~45
8,375,943
With foreign orders for cotton continuing
in heavy volume, exports during Decem·
ber from the ports of Houston and
Galveston showed further increases over the preceding
month contrary to seasonal tendencies, and were again rna·
teriallY above those in the same month of 1930. Receipts of
cotton during the month were substantially smaller than in
November, but continued above those a year ago. The com·
bined season totals, which reflect operations from August
Cotton
Movements
703,95 5
~
-
~UlEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORT8-(Bales)
1,604,589
1,249,394
10,013,768
321,515
-
~
1,208,780
344,362
10,Zoo
37,000
1,500
647,655
August 1 to Dccember 31
'l'his SellSon Last SeaBOD
2,439,915
2,47~,~g
1,530,500
1,34 ,006
09
1,506,944
1,5,
COTTON CONSUMED AND ON HAND
(Baltls)
Cotton-growing states:
Cotton consumed . .. .... . . ..
On hand Dec. 31 inConsuming establishments.
Publio storage and oompresses ...... .. . ····· · .
United States:
Cotton consumod ..... .. .. . .
On haad Deo. 31 inConsuming establishments.
Publio storage and oompresses ................
-
Dec. 31,
1930
7,700
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
Stooks, December 31. ... . . ... .
December
1931
-
December August 1 to December 31
This Season LlIBt Season
1030
176,135
1,511,980
1,197,~~~
183,433
976,067
678, 55
023,514
763,9
~eceipts ... . ....... :................ . .. . .. . ........ ...
Exports: Umted Kmgdom............................
France............ . .............. . ........ .
Italy . . . .. .. . .. .. .. .. . . .. . . .. . .. . .. . . .. .. .. .
Germany...................................
Othor Europo. . . . . . .. . . .. . . .. . ... . . . ... .. . . .
Japan. .. .............. .. ........ ...........
AU otber oountries...........................
Total forei~n ports. . . ...... .................
Stooles at aU United tates ports, Decembor 31...........
__
August 1 to Dcoember 31
This Scoson Last SeaBOD
6,282,742
7'~l~'m
587,771
630'461
161,190
277'85 8
323,201
1 064' 863
780.447
'392'23 7
374,875
477'198
903,041
351'63 0
814,603
3946'596
4,035,134
'288'712
4,705,505
4, ' ~
SPOT COTTON PRICES-(Middling BlIBis)
______________~=-~(C~o_ts~~_~po~_d ) ____________~~~
n
r un ~
Dccomhor, 1931
Jan. 15,
High
Low
1932
6.75
Ncwyork ... .. .. .. ..................... .
0.55
0.00
0.58
Now Orlcons ................ . .. . ........ .
6.88
5.92
6.10
DnUIIB .. . ............ ..... ............. .
5.00
5.40
6.60
Houston . .. ........... . .............. . .. .
6.30
5.80
6.55
Galveston .............................. .
6.40
5.90
~
----------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW
7
---------------------------------------------------------------------------------------------Petroleum
The total output of crude oil in the
a
Eleventh District during December, which
thounted to 30,722,4,00 barrels, was 738,650 barrels smaller
I an the yield in November, but continued considerably
t~rger than a year ago. The month's daily average produc.
~O~ bmounted to 991,045 barrels, as compared with 1,048,·
D anels in the previous month, and 781,474 barrels in
r eee~er, 1930. There was a reduction in field activity,
i esul~ng in the completion of only 444 successful wells duro
flng t e month, as against 550 producers in November. The
inushh output of new wells declined from 4,,193,964 barrels
t e earlier month to 3,049,4,98 barrels in December.
DECEMBER DRILLING RESULTS
Com.
pletions
Gas
Wells
Fail·
ures
Initial
Produetion
North Texas . ... .. .........
Central West Texas ....... ..
East Central Texas ... ......
South Texas . ...... .. . . ....
Texas Coastal.. ........... .
54
29
372
44
24
28
12
364
23
13
1
4
2
2
1
25
13
6
10
10
3,210
1,116
3,021,220
5,044
14,015
Totnl Texas .......
Now Mexieo ......... . . ....
North Louisiana ... . ........
523
4
16
440
2
2
10
1
0
73
1
8
3,045,513
3,865
120
Decembor totals, district ....
November totals, distriet ... .
919While Texas' daily average production, amounting to
b ,698 barrels, was 222,359 barrels higher than in Decem·
el', 1930, it showed a decrease of 55,459 barrels from the
Pree d'
'V I e mg month. Most of the curtailment was due to a
SO untary movement shutting down Sunday production in
bc'Veral sections. The Gulf Coast showed a gain of 1,377
r:flre1s OVer the daily yield of November, but the other areas
r eeted decreases. New Mexico and North Louisiana also
epOl'ted declines in daily output.
Pro·
ducers
543
671
444
550
17
22
82
00
3,040,498
4,108,004
CRUDE OIL PRICES
Jan. 12,
Texll8 Coastal (40 gr. and above) .... . .... ..... ... . .. . . .
North Texas (40 ~r. and above) ...... . . .. . ............ .
North Louisiana (40 gr. and above) .................... .
·Prioe paid for 'fexas Coastal, grado "A •
··Price paid for oil, 44 gr. and above.
Jan. 13,
1082
S .86
.85
.85
1931
$1.00·
1.07
1.19··
(Oil statistics oompiled by Tho Oil Weekly, Houston, Texas)
-
OIL PRODUCTION-(Barrels)
~~~.rW:i ~;
. ............
Building
Contrary to the seasonal tendency, valu·
ation of building permits issued at lead·
ing centers in this district during the final month of 1931
reflected a further decrease of 39.0 per cent as compared
with the previous month, and was 65.4 per cent less than
the volume of December, 1930. Aggregate valuation in De·
cember amounted to $1,698,781, as against $2, 784~439 in
November, and $4,,910,142 in the corresponding month a
year ago. Construction permits issued during 1931 totaled
$39,523,179, reflecting a decrease of 41.7 per cent from the
volume of 1930, which amounted to $67,760,752.
Inorease or Deoreaso Over
November, 1031
December, 1031
Daily Avg.
Daily Avg.
Total
Total
-242,300
-137,000
-523,400
+162,450
2,000
-11,629
-11,742
-31,505
+ 1,377
- 1,060
1,732,900
106,684
214,335
421,765
121,114
55,900
-
1,340,150
862,000
010,608
43,621
27,826
-744,050
+ 22,550
- 17,150
-----55,459
690
- 1,490
-
Total Distriot .. ...... 30,722,400
091,045
-738,650
- 57,657
3,304,100
EaSt C
lexas ...... ... ,. 6,644,400
'ro l cntral Texas ..... .. . . .. 13,074,700
Sou~ T~astnl. .... . ......•. . . 3,754,550
XBB • •• • • ••••••• • ••• •
-----'fatal Texas .....•... 28,510,650
New 11:
Nertb ~I~O: ...... . .... .... .
U181ann •.. . • . . . •.•.. .
---
~
-
BUILDING PERMITS
Dee., 1031
Deo., 1030
No. Valuntion No.
-:------ - - - - - -AlI\nriUo .......
Auaf
Ilen In .... . ....
C umont ......
D~WruS Christi. .
El PB8 .. .. .....
..ortWo;t······
Onlv t h .....
lIoua~ on . .....
Port ~r~h""'"
San Anto~~""
ShrovellOrt . . ..
\V no
.....
\Vio~ia Iialts·· ...
.. .. . .
~al. .....
~
21 $ 43,241
85,361
60
40,050
68
34
10,055
183
363,057
24
17,425
02
258,413
28,030
78
850,400
140
23
6,112
163
445,741
30,870
105
10,000
13
1.815
10
Pereentage Ohnngo
Valuatioa Over
Yonr
Vnluatioa
34 $ 60,505
54
400,573
129,734
135
31,765
27
248 1,275,038
126,325
60
185
473,073
000,048
85
224 1,008,810
34
12,320
242
607,050
120
33,341
27,820
21
7,235
13
- - - - - - - ----1,023 $1,008,781 1,404 84,010,142
-37.8
-70.0
- 08.7
-40.4
-71.5
- 80 .2
-45.4
-00.0
-05.2
-50.4
- 20.7
- 7.4
-00.8
-74.9
---65.4
Nov., 1031
No.
-26
107
82
26
274
37
132
120
220
48
108
159
25
0
Valuntion
S 20,530
351,208
23,238
12,105
325,608
22,040
346,070
341,500
870,873
11,420
312,178
62,028
78,340
5,975
- - -----1,442 $2,784,430
Twelve Months
Perconta~e
Change
ValuatIon Over
Month
+46.4
-75.7
+75.0
+32.6
+11 .7
-21.0
-25.5
-91.8
-00.0
-46.5
+42 .8
-41.3
-85.1
-09.6
---30.0
1030
1031
No.
Valuntion
522 $ 2,737,571
1,132
2,317,013
1,007,354
1,191
406,150
505
4,750,223
3,021
770
001,756
2,001
5,797,010
2,542,278
1,439
3,547 11,074,450
017,502
067
3,281,862
2,008
937,141
1,758
1,860,411
308
128
150,568
No.
Valuntion
Poreentage Change
Vnluntion Over
Period
031 $ 1,843,145
1,041
3,500,703
1,750
2,600,355
622
1,150,202
3,776
11,135,011
1,273
2,060,166
2,747
10,121,774
1,446
1,700,383
3,713
17,613,072
1,140
2,800,308
3,238
8,500,010
2,017
1,550,714
1,154,055
860
204
030,985
+48.5
-34.0
-li8.8
-li6.0
-57.3
-07 .6
-42.7
+41.3
-33.7
-07.3
-61.4
-30.0
+61.2
-83.8
20,842 $39,523,170 24,018 $ 07,700,752
-41.7
~-----------------------------------------
-8--------------------~M~O~N~T~H~L~Y~B~U~SI~N~E~'S~S~R~E~V~IE~W~------------------_
,
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federnl Reserve Board as of January 26, 1982)
Industrial activity declined from November to December
by slightly more than the usual seasonal amount, while the
volume of factory employment showed about the usual decrease. Wholesale prices declined further.
PRODUCTION AND EMPLOYMENT
Volume of industrial output decr~ased somewhat more
than is usual in December and the Board's seasonally
adjusted index declined from 72 per ~ent of the 1923-~9~5
average in November to 71 per cent m December. ActIVIty
in the steel industry decreased from 30 to 24 per cent of
capacity for the month, partly as a result of seasonal influences. In the first three weeks of January, it showed a
seasonal increase. Automobile output increased considerably
in December from the extreme low level of the preceding
month, and daily average output at shoe factories, which
ordinarily declines at this season, showed little change. At
textile mills production was curtailed by more than the usual
seasonal amount. The number employed at factories decreased seasonally from the middle of November to the
middle of December. In the automobile and shoe industries
there were large increases in employment, while in the
clothing industries employment declined. In most lines,
however, changes were of a seasonal character. For the year
1931 as a whole, the average volume of industrial production was about 16 per cent smaller than in 1930, reflecting
large decreases in the output of steel, automobiles, and building materials, offset in part by slig~lt ~nCl'eases in production
of textiles and shoes. Value of bUIldmg contracts awarded,
as reported by the F. W. Dodge Corporation, declined considerably more than is usual from the third to the fourth
quarter and for the year as a whole was 32 per cent smaller
than in 1930, reflecting reduced physical volume of construction, as well as lower building costs.
DISTRIBUTION
Distribution of commodities by rail declined by the
usual seasonal amount in December, and department store
sales increased by approximately the usual amount.
FOREIGN TRADE
Value of foreign trade continued at low level in Decem_
of
ber, and for the year as a whole exports showed a decrIn e nt
37 per cent from 1930, and imports a decline of 32 per ce ,
reflecting in part the reduction in prices.
WHOLESALE PRICES
Wholesale prices of commodities declined from 68 Pf~
cent of the 1926 average in November to 66 pe~ ~e~t reo
December, according to the Bureau of Labor St~tIStiC ! u1.
flecting decreases in the prices of many domestIc agrtUrlI
tura! products, sugar, silk, iron and steel, a~d pet:oh~gs,
products. During the first half of J an~ary I?l'lces fO otto ,
lard, and butter declined further, wIllIe pnces 0 c n
silk, coffee, and copper increased.
BANK CREDIT
h middle
Reserve bank credit which had declined from t e d in
of October to the mid die of December an.d ~ad incr~atS~ree
the latter part of the month, declined agam m the ~IS m
weeks in January. The growth in the latter part of ec.e ber
the
reflected a somewhat more than seasonal increase ~n tile
.
In
demand for currency, partly offset by re dU.ctlO s foreign
member bank reserve balances and in depOSIts 0
was
central banks. In January the return flow of curh~¥c~erll'
considerably smaller than in other recent ye~rs, w IC: tan ce
bel' bank reserve balances continued to declme. Ac ~al of
holdings of the reserve banks, which had reached a t0turing
$780,000,000 in October, have declined throu~h rna nd on
of bills held almost uninterruptedly since that tlme'f ali 0 of
January 20 totaled $190,000,000. The banks' .p ort.o re
ase
United States Government securities showed sOded~n~ountS
over the level of the early part of December an dS'nvest.
for member banks increased subs~antia~ly. Loan~
further
ments of member banks in leadmg CItIes declIne reflect.
during December and the first two weeks of January! other
ing reductions in loans on securities, as well as. InbUying
loans, and in investments. In the middle of Janual y Banks
rates for bankers' acceptances at the Federal Reserv clined
were reduced and open market rates on 90·day bills eYields
first from 3 to 2% per cent and later to 2%, per. c nt .£ about
of high grade bonds, after advancing for a peno 0 fleeting
four months, declined after the turn of the year, Ie
a rise in bond prices.
f
ad
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