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MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
C. C. WALSH
As,istont Federal Reserve Agents
Choirman and Federal Reserve Agent
(Compiled January 15,1933)
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Dallas, Texas, February 1, 1933
!olume 17, No. 12
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This COpy is released for pubIication in morning papers-
J anuary 31
DISTRICT SUMMARY
THE SITUATION AT A GLANOE
Eleventh Federal Reserve District
Ohange from
November
December
1032
Ba'!k debits to individual accounts (at 17
D cities) .................................. .
ll~~artmont store sales ................ ..... ,
"""'frve bank loans to member bankslJat end
~ month ............................... .
B . r.ve bank ratio at end -of month .......•••
Culldlng ~rmit valuation at larger centors ••• •
Commercial failures (number) .. •••.. .•••. •.••
Oilmmcrcial failures (liabilities) .•.•........••
_ production (barrels) ..... ...... ........ ..
$632,054,000
+
16.8%
+ 47.2%
,
-
6,202,622
48.0%
1,116,348
76
, 1,648,816
26,647,160
,
26.7%
1.6 poiats
80.8~
-+ 21.0
- 22.1
- 8.7.
Business and industry in the Eleventh District was generally well sustained during the past month. Department store
bales in the larger cities reflected a gain of 4,7 per cent
htween November and December, which was slightly larger
~ an seasonal. As compared with the corresponding month
~st year, sales were 22 per cent smaller. Wholesale distribuhan, while normally quiet in the closing month of the year,
:ve some evidence of improvement. In some lines the less
n seasonal recession and the narrowing of the margin
b decline as compared with a year ago are indicative of the
etlerment in underlying conditions. Retailers continue to
lllolv e forward cautiously and are making replenishments
on y .
In response to consumer demand.
t
Another significant development was a decline of 22 per
dent in the number and liabilities of commercial failures
s Ul'ing December. The financial strain incident to year-end
ettlements usually increases the mortality rate, but this year
there was a further recession from the previous month as
well as a sharp decline as compared with December, 1931.
In fact, there were only two months in 1932 which showed
fewer failures and smaller liabilities than December.
The agricultural situation was improved materially by
the general rains and snows during December and early
January. A good season now obtains in most sections of the
district. Small grains, while in very poor condition, have
shown some improvement recently. The December freezes
pulverized the soil and left it in excellent condition for
working, but land preparation is still backward in many
areas due to the wet soil. Livestock and their ranges are in
generally good condition and livestock are expected to go
through the winter in fine shape.
The loans and investments of commercial banks in larger
cities reflected the usual seasonal decline in December and
the first half of January. Federal Reserve Bank loans to
member banks showed a gradual decline belween December
15 and January 15. The figure on the latter date amounted
to $4.,369,000, as compared with $16,572,000 on the same
date last year. The daily average of combined net demand
and time deposits evidenced less than the usual seasonal
recession in December, the total for the month being $613,028,000, as compared with $614,411,000 in November, and
$677,029,000 in December, 1931.
The valuation of building permits issued at larger cities,
after declining to a conspicuously low level in November,
rose sharply in December and reached the highest point
registered since June.
BUSINESS
rholeSale
Varying trends characterized the wholesale trade situation in this district during
d
December. While the usual mid-winter
i: ness was visible in most lines, a general and substantial
ease. Was reflected in the sales of wholesale drug fir~s,
of theIr business was larger than a year ago. In the lme
Ie groceries the decrease from November was somewhat
sass than seasonal. More favorable comparisons with the
dl'llle month a year ago were registered in groceries and
la ugs. than were shown in November. Total sales during the
inS\SlX months of the year, as compared with the like period
931, reflected decreases ranging from 8.8 per cent in
raite
n
\
(
I
and
the case of groceries to 30.9 per cent in the case of farm
implements. These comparisons are more favorable than the
similar figures that were reported for the first half of the
year, when the reductions ranged from 19.2 per cent in the
former case to 55.8 per cent in the latter case. Retailers,
generally, continue to buy on a conservative basis and with
careful budgeting of their requirements. In four of the five
reporting lines, the volume of collections during December
showed a seasonal reduction from the preceding month.
The noticeable lull in business, which is normally visible
in dry goods during December, was only slightly more pro-
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2----------------------------------~--------------------------------------------------------------------MONTHLY BUSINESS REVIEW
--------------------------------------------------------------------------------------------------------nounced this season than usual. Total sales were one-half
as large as those in November, and there was a decrease of
36.2 per cent as compared with December a year ago. Distribution during the last six months of the year was on a scale
17.8 per cent below that of the same period in 1931. Merchants, as well as wholesalers, closed the year with low
stocks, and as business has been largely on a hand-to-mouth
basis, any pick-up in consumer buying is expected to be
reflected immediately at wholesale. Collections evidenced a
seasonal reduction in volume, but their ratio to accounts
receivable remained the same as in the preceding month.
An appreciable pick-up of 9.2 per cent occurred in the
December sales of wholesale drug firms in the Eleventh
District, this improvement being contrary to the usual seasonal movement. An increase of 2.8 per cent over the same
month in 1931 was reflected, which compared with an average decrease of 15.7 per cent for the six months ending
December 31. Nine of the ten reporting firms participated
in the gain over November, and seven showed an improvement over a year ago. Collections showed little change from
November.
For the second successive month a smaller than seasonal
reduction was shown in the demand for groceries at wholesale. Total dollar sales, which were 7.1 per cent below the
level of the previous month, were in practically the same
volume as in December a year ago, the decrease amounting
to only 0.6 per cent_ In November there was a corresponding reduction of 10.2 per cent. Although inventories were
very low at the year-end, depleted stocks of merchandise on
dealers' shelves are being replenished only as the necessity
arises. December collections were only 2.9 per cent smaller
than those of the previous month.
The business of reporting wholesale hardware firms
during December was seasonally 13.1 per cent less than in
the preceding month, and there was a decline of 19.5 per
cent as compared with a year ago. It is indicated that conditions are better in some portions of the district than in
others. The volume of distribution from July through
December was 13_5 per cent below the total for the same
months of the previous year. December witnessed a further
decrease of 9.1 per cent in collections.
A further decline as compared with the previous month
was reflected in the distribution of farm implements by
wholesalers in this district during December. Sales totaled
7.5 per cent less than in November, and there was a redu c.
tion of 7.7 per cent from the same month a year ago. For
the period from July 1 to December 31, the demand for
implements averaged 30.9 per cent under that of the last
six months in 1931. A further substantial decrease waS
shown in collections during the month.
CONDITION OF WHOLESALE TRADE DURlNG DECEMBER,
Percentage of increaso or decrease in-
Groceries .........
Dry goods ........
Farm implements ..
Hardware ..... ...
Drugs . ....... . ...
Net sales
Net sales
Stocks
Ratio of collcoDec., 1932 July 1 to dato Dec., 1932 tions during Doo.
compared with oompared with compared with to acoounts and
Dec., Nov., same period Dec., Nov., 110tes outstanding
1931
1932
last year
1931 1932
on Nov. 30
- .6 - 7.1
- 8.8
- 16.1 - 11.2
65.8
-36.2 -liO.l
-17.8
- 13.6 - 12.6
28.4
- 7.7 - 7.6
- 30.9
- 6.3
0.0
2.7
- 19.6 -13.1
- 13 .6
- 14.6 - 4.3
28.2
+ 2.8 + 9.2
-16 .7
- 11.9 + 1.6
36.6
Despite the inclement weather prevai1~g
during the greater part of December, e
distribution of merchandise at depart·
ment stores in principal cities of this district reflected a sed'
sonal increase larger than the average. On the other h aJ1
the comparison with the corresponding month of 193
showed another unfavorable percentage, and was larger tha ll
that registered in November. Sales during December wer;
47.2 per cent above those in the previous month, but 22'1
per cent less than a year ago. Following the above seasOI~8.
trend in sales, this bank's seasonally adjusted index: .IP
g
creased from 60.3 in November to 61.8 in December. Dur lP d
·
e
1932 the dollar volume of sales of reporting firms dec 1IJ1 b.
to a level 24 per cent below that in 1931, however, a SU •
stantial portion of that reduction was due to further reces
sions in the commodity price level.
Retail
Trade
!
Inventories held on December 31 were exceedingly JO'~
in volume, being 23.4 per cent less than those on han ~J
the close of 1931, which was the lowest for that montS I~
many years. Stocks were 24.4 per cent below those hel .0
November 30, this year. The rate of stock turnover durlpg
1932 was 2.94., as against 3.01 in the previous year.
December collections continued on approximately ~:
same level as in the preceding two months, but they ~eps
slightly below those a year ago. The ratio of collec}l~e
during December to accounts outstanding on the first 0 pt
month was 32.9 per cent, as compared with 32.8 per ce
in November, and 33.1 per cent in December, 1931. ~
BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
December, 1932, compared with December, 1931. . ............... . .. .. .......... .
December, 1932, compared with November, 1932 ... .. .... . . . .........•...........
Janunry 1 to date compared with same perIOd last year ..............•. . ..........
Credit sales (percentage):
December, 1932, compared with December, 1931 .. . .. ... . . ... .............. . . ... .
December, 1032, compared with November, 1932 .. . ................... . ........ . .
Janunry 1 to date compared with same period last year . ........................ ..
Stocks (percentage):
December, 1932, compared with December, 1931. ............................... .
December, 1932, compared with November, 1932 ...........•....•. ...... . ...... ..
Stock turnover (rate):
Rate of stock turnover in December, 1931 ...................... .... ............ .
Rate of stock turnover in December, 1932 ..... . ............... . ........ .. . . . . .. .
Rate of stock turnover January 1 to December 31, 1931. . ............ . ... . ... . ... .
Rate ofatock turnover January 1 to December 31, 1932 .......................... .
Ratio of December collections to aceounts receivable outstanding December 1, 1932 .. ... .
Indexes of department store sales:
Unadiusted December, 1932 ... , .. ............ . .............................. ..
Adjusted December, 1932 ................... ..... ............ ...... ....... ... .
Indexes of department store stocks:
Xd~J~~!:::;er9i:~:: ::::::::: :::: :::: :::::: :::: :::: :::: :::: :::::::::: :
193~
----
Dallas
-23.6
+46.8
- 22.4
Fort Worth
-26.3
+66 .7
-25.7
Houston
-19.1
+51.6
-25.3
San Antonio
-23.1
+42.4
-27.6
Others
- 18 .7
+40.2
-21.1
Total Distrlot
_22.2
+47. 2
_24 .6
- 24.9
+89.3
-23 .6
-30.3
+45.3
-25 .1
-24.3
+42.2
-28.9
-25. 9
+87.7
- 28.7
-24.3
+40 .2
-25.8
_25.7
+40. 0
_25.8
-17.2
-21.2
-25.1
-35.4
-36.5
-26.9
-19.2
-18.6
-22.7
-21.6
_23. 4
_24.4
.42
.38
8.10
2.92
34.1
.39
.37
2.41
2.31
26.4
.41
.51
3.18
3.61
35 .7
.45
.45
4.00
3.80
37.0
.36
.36
2.73
2.64
31.3
.40
.40
3.61
2.94
32.9
91.1
56 .9
122.5
69.2
118 .8
72.4
85.5
56.2
100. 8
61.8
40.4
45.9
50.5
61.6
42 .8
46.0
38.9
38.1
43.4
49. 0
MONTHLY BUSINESS REVIEW
3
---------------------------------------------------------------------------------------------------Commercial
Contrary to the usual upward trend at
Failures
the year-end, the record of commercial
.
insolvencies in the Eleventh District durIng December reflected a further reduction from the previous month, and was more favorable than in the closing
month of either 1931 or 1930. The report of R. G. Dun &
~Ompany for the past month showed a total of 75 defaults
~n this district, as compared with 96 in November, and 134
In the same month a year ago. Liabilities aggregated $1,643,815, as against $2,111,500 in the preceding month, and
$2,365,202 in December, 1931. While most of the failures
occurred in the trading group, a maj or portion of the indebtedness was reported in the manufacturing group_
There was a total of 1,195 insolvencies in 1932, owing
$26,909,360, as against 1,134 suspensions in 1931, with
liabilities amounting to $23,041,466_ It is noted that both
the number and liabilities of defaulting firms during the
year were considerably smaller than in the depression years
of 1921 and 1922, and the total indebtedness was appreciably less than in 1923.
AGRICULTURE
Crop Con-
The rains and snows of the past month, was increased somewhat and as the per acre yield was above
ditions
which were general over the district, were a year ago, the total production of these crops was materially
very beneficial to agriculture. A fair to larger than last year. The cotton acreage was smaller and
g~od season now obtains in practically all sections, which the per acre yield declined with the result that the final
WIll materially aid land preparation. The December freezes outturn was considerably under 1931 production. Among
Pulverized the soil and left it in eXicellent condition for the minor crops there was no definite trend, the production
W~rking. Winter plowing is progressing rapidly where the of some crops showing an increase, while that of others
SoIl has dried sufficiently, but in many areas farmers are declined. The production of all classes of fruit was matericonsiderably behind schedule with this work.
ally reduced by the March freeze. The output of a majority
of
the commercial truck crops also declined. In Louisiana
Small grains in most sections of the district have made
Phor growth. Conditions during the fall were very un favor- and New Mexico the yield per acre and the total production
a Ie for germination and plant development. Due to the of practically all major crops were lower than in 1931.
pro~o~ged period of dry weather, many fields did not have
COMPARATIVE STATISTICS ON PRODUCTION OF PRINCIPAL CROPS IN
SuffiCient moisture to germinate the seed and in others the
TEXAS-lOBI AND 1032
stands obtained were very poor and irregular. In the early
Thousands of
Yield
~lanted fields where good stands were obtained, the moisture
Produotion in
aoros harvostcd
per aoro
thousands of uni ts
eficiency prevented the development of a healthy root syslOBI
10B2 1031 10a2
1081
1032
t~m. The Department of Agriculture estimated the condition
Corn ....... .. ... .. ... 'lbUShelSl 5,236 5,707 17.5 18.0
01,630 102,726
Wheat
.
..
.
..
...
.
......
bushels
3,802
2,058
14.4
10.0
56,045
20,580
o the Texas wheat crop on December 1 as 56 per cent as
Oats .... . ............. bushels 1,782
1,740 34.0 24.0 58,888
41,076
Barloy ... . ............ bushols)
221
210 23.5 17.0
5,104
3,570
c~mpared with 83 per cent a year ago, and reported that,
Grain so!ghums ........ bushels 3,871
4,065 15 .5 15 .5
60,000
63,008
~lth t~e exception of 1921, this is the lowest December 1
Hay-wild .. . . ........... ~tons
205
205
.85
.00
174
184
Hny-tnmo. . . . . . . . . . . . . .. tons
548
558 1.12 1.15
606
642
d~~re 10 the last thirty-three years. Due partly to poor conBroom oorn ............... tons
10
9 aDO' 200'
1,500
1,300
hon , small grains suffered further injury from the mid67
62 73.0 67.0
Potatoos-whito ... . . ... !bUShOIs
4,891
4,154
Potatoos-sweet ........ bushels
77
100 72.0 76.0
5,544
7,600
ecember freezes but reports indicate that some improveRico. . . . . . . . .. . . . . . . .. bushels~
205
185 52.5 48.0
10,762
8,880
Peanuts .. . ..... ... . ... pounds
201
229 53.0 55.0 106,530 125,050
~ent Occurred after the rains and the return of moderate
Cotton .... .. ..... ....... (halos 15,421 13,022 165' 153'
5,320
4,445
·Pounds.
e~peratures. The Department estimated the acreage sown to
Winter wheat in Texas in the fall of 1932 as 3,833,000 acres
as compared with 4,035,000 acres in the fall of 1931. It was Lwestock
The heavy, general rains during Decemstated that considerably more volunteer acreage than usual
ber broke the long period of dry weather
Wa .
s Included in the total.
over the range territory, replenished the supply of stock
n Some vegetable crops were damaged severely by the water, and provided the needed moisture to improve grain
thecember freezes. The Department of Agriculture reported pastures and start new feed. While ranges in most areas
b at the crops damaged included spinach, beets, carrots, carry a good crop of old feed, green pastures, which have
lhoccoli, turnips, cabbage, parsley, peas and radishes. While been lacking throughout the fall, are needed to keep livee actual damage to some crops was small, growth was stock in good condition. The Department of Agriculture re1'
\:.tjrded . The onion crop was reported as in good condition ports that moisture conditions are more favorable than they
thlt 1. th~ advancement of the crop nearly normal. While were a year ago and prospects are good for early spring
is e indicated production of cabbage, spinach, and carrots grazing. The low temperatures, which accompanied the
la substantially above a year ago, it is due entirely to the December rains and snows, caused considerable shrinkage
sidger acreage. Truck shipments this year are running con- in livestock but losses were light and the generally mild
P erably under those of last year. Farmers are rushing weather since mid-December has given livestock a chance
a~eparation of the soil for spring truck crops and plantings for improvement.
b ~ expected to be well under way in the Rio Grande Valley
According to the January 1 report of the Department of
e Ore the end of the month.
Agriculture,
the condition of cattle ranges in Texas was 81
Cropp
dUct' 1'0The final report of the Department of per cent of normal, reflecting a decline of 1 point from
St ~o,!,
Agriculture reflects the effects upon crop December 1, but an increase of 3 points as compared with
cttl.stLCS
production of the variable weather dur- a year ago. Sheep and goat ranges showed no change in conand
ing the 1932 growing season. In Texas dition during December and on January 1 were 1 point better
Pr 0 dOk!ahoma, there was a substantial reduction in total than last year. The condition of cattle and goats declined
Ye Uctlon of small grains as compared with the previous 3 points during December, and that of sheep dropped 2
r , d~e both to the heavy acreage abandonment and the
points. As compared with a year ago, the condition of cattle
nYield per acre. The acreage planted to most feed crops on January 1 was 1 point higher; that of sheep 1 point
n
Slti:
---------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW
---------------------------------------------------------------------------------------------------4
lower; and that of goats remained unchanged. There was
practically, no change in the condition of ranges and livestock in Arizona and New Mexico during December, but the
condition in Arizona is more unfavorable than a year ago.
M O1Jements
Movements of livestock to market during
and Prices
December reflected largely seasonal
trends. The receipts of cattle, calves, and
sheep at the Fort Worth market were substantially smaller
than in the previous month while those of hogs were larger.
As compared with December, 1931, the arrivals of cattle and
hogs were smaller, but those of calves and sheep were
greater.
Cattle prices during December and the early part of
January were irregular with the trend toward lower levels
due both to the poor demand and the lack of quality receipts. During the second week in January the market was
stronger, and prices on all classes were steady to higher.
After the middle of December, the hog market turned weak
and at the close of the month registered the lowest price
since June. The market showed a firmness near the December low during the first half of January. The sheep and
lamb market reflected a stronger undertone during the past
thirty days and the trend of prices has been upward.
-
FORT WORTH LIVESTOCK REOEIPTS
(Number)
Deoember
1982
24,129
17,147
16.167
35.587
Cattle .... . ..... .
Calves ..... . ... .
Hogs ..... ... .. .
Sheep. .... .... . .
Deoember Ohange over November Change over
1D0nth
yenr
1981
1932
-12.489
43,959
- 19,880
36,618
-15,369
32,516
16.269
+ 878
+ 3,172
- 2,142
18,309
12,995
_ 4,076
25,562
a9,663
+10,025
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundrodweight)
--------------------------------------------November
December
1932
Becf steers .............................. . $5 . 25
Stocker stears ........................... .
5.15
Butcher cows ............. ...... ........ .
3.00
Stocker cows .•• •••••.... ...... •.•••••••.•
Calves .•••••••••••..•••••••.............
6:26
3.50
2.00
4.75
~~::::::::::::::::::::::::::::::: :::
December
1931
$6 .65
5 .00
4.25
4.00
5.65
5.05
3.25
4.75
1932
$5 .65
5.25
3.25
a.OO
5.25
3.95
2.50
4.50
FINANCE
Coincident with year-end liquidation and
adjustments, the reports from banks in
selected cities reflected a substantial decline in loans, and an increase in investC~s
ments during the five-week period ending
January 11. The investments of these banks in United States
securities rose $4,223,000 between December 7 and January
11, and on the latter date were $10,524,000 larger than a
year ago. Investments in other stocks and bonds, which increased $791,000 during the period, showed a decline of
$3,955,000 as compared with a year ago. The loans of these
banks, reflecting largely seasonal operations, declined $14,301,000 between December 7 and January 11. Of this
amount $2,537,000 represents a decline in loans on securities and $11,764,000 occurred in "all other" loans (largely
commercial). While net demand deposits declined $1,234,000 during the five-week period, time deposits rose $2,531,000. As compared with January 13, 1932, total deposits
on January 11 this year were $23,094,000 lower. On January 11 these banks were entirely out of debt at the Federal
Reserve Bank and five weeks earlier the indebtedness
amounted to only $20,000. On January 13, 1932, however,
the borrowings of these banks from the Federal Reserve
Bank totaled $5,509,000.
Condition of
Member Banks
in Selected
CONDITION STATISTICS OF MEMBER BANKS IN SELEOTED OITIES
(In thousands of dollars)
UnIted States seourIties ownod ..•........••
All other stocks, bonds, and seourities ownod.
Loans on securitIes . . .• •••.• ..••.. •••.•.••
All other loana . ....•• ••• .• •••••••• . •. ••.•
Totalloana .........•.• ...... •••••. .. ••••
Net demand depoalts .•..•••......•..•••••
TIme depoaits .....................•.•...•
Rcserve with Foderal Reserve Bank .... ••••
Billa payable and redlsoounts with Foderal
Reserve Bank . .. ..... ..•• •••. •••••. ... •
Jan. 11,
1983
S 92,322
56,159
69,725
157,014
226,739
221,246
130,821
27,865
Jan. 13,
1982
S 81,798
60,114
81,829
192,922
274,751
245,024
130,137
29,780
Dec. 7.
1932
S 88,099
65,368
72.262
168.778
241,040
222.480
128,290
26,881
None
5,509
20
Federal Reserve Bank loans to member
banks reflected a gradual recession between December 15 and January 15, the
serve Bank
total on the latter date being $4,369,000,
as compared with $5,613,000 on the former date. These
loans normally decline during the closing weeks of the year
Operations of
the Federal Re-
and then turn upward early in the new year. This year, hOd:
ever, member banks continued to liquidate their indeb~e jf
ness at the Federal Reserve Bank. On January 15, 1932, t ~IY
indebtedness at this bank amounted to $16,572,000. Shor Iy
after the turn of the year, reserve city banks cornpletae'
liquidated their lines and country banks continued t~ re
crease their indebtedness. On January 15 this year e!ll'
were 120 borrowing banks as compared with 131 on Dec,fhe
bel' 15, and 200 on the corresponding date last year. r8
investments of this bank in United States securiti~s
reduced $836,000 during the past month, but are s~l11 ur'
022,000 greater than a year ago. Holdings of bllls Pre'
chased in the open market were increased slightly.
all
serve deposits of member banks totaled $46,683,0 15,
January 15, as compared with $4,7,292,000 on Decern~er the
and $4.8,510,000 on the same date in 1932. RefiectIng. day
return flow of currency from circulation after the hob JlU'
season, Federal Reserve notes in actual circulation onO~ be'
ary 15 amounted to $37,515,000, which was $1,450,0 for
low that a month earlier, and $8,057,000 below that
the previous year.
;{S,.
1;;
Ir==========================-"""
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
--
--------------~-------------------------15
Total cash rC80rves ...................... .
Dlsoounts for member banks ...••..•• ••••••
Other bll1s dlacounted ...... , .. ••••••• •••• •
Billa bought In tho oJilCn market •. ...•••..••
United States securities ownod •••• •• •••. •••
Other Investments ...• . ••••.•••••••••• .•• •
Total enrning 088el6 .............. ....... .
Member bank reeerve dopoalts . .••....•••••
Foderal reserve notes In actual olroulatlon •••
Jan. 15,
19S3
S 42,983
~J369
Nona
856
44,885
5
60,116
46.683
37,515
Jan. 15,
1932
S 56.945
16,572
1
a,131
29,86~
49,572
48,510
45,572
Dco. ,
1932
S 4~,~g
~one
saO
45,72~
52,~~~
47, "'
38,g""
.
e dailY
The decline which was shown. III t~eposi!S
average of net demand and tIrne D'striCI
of member banks in the Eleventh ) dllC'
during December was considerably smaller than ~he
tion that usually occurs at this season. The comblne gail1S!
age for the month amounted to $613,028,000, as a )'I1ber,
e
$614,4.ll,000 in November, and $677,029,000 in Dec o 1~8S
g
1931. The comparison with the same month a year
tillle
the most favorable reported in some time. Both t e
Deposits of
Member Banks
i:ver'
h
MONTHLY BUSINESS REVIEW
deposits of reserve city banks and the net demand deposits
of country banks reflected further increases over the previous month_
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
with $4,56,103,000 in November, and $626,4.84,000 in December a year ago. A further improvement was shown in the
comparison with the same month in 1931, the decrease
amounting to 14.9 per cent in December, as against 17.3 per
cent in November, and 30.4 per cent in October.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
Combined Total
Reserve City Banks
Country Banks
Net damand Time Net demand Time Net demand Time
deposits depoeits deposits deposits deposits depoeits
Dee., 1031. . . .. . $474,035
JFan., 1032...... 408.172
b., 1032.. ... .
Mar.,
1032......
tf,ril,
Jay,
Juno,
Uly,
Aug
1032......
1082......
1082......
1082......
1032
Bopi' 1082......
Oct ., 1032 .. ....
~e~:, 1032::::: :
ec., 1032......
400,110
401,557
445,050
484,865
422,504
421,727
409,254
413,201
413,100
421,165
420,702
$202,004
100,782
100,572
104,887
101,298
100,720
180,000
180,005
187,008
187,040
180,716
103,240
102,200
$220,307
221,700
222,110
221,835
216,640
212,117
207,155
200,225
201,130
202,121
200,582
204,361
202,913
$122,074
118,475
118,008
117,330
115,732
115,372
115,084
114,505
114,532
113,087
116,186
110,810
117,465
$248,538
240,373
240,004
230,722
228,401
222,748
215,480
212,502
208,124
211,170
212,008
210,804
217,840
$70,420
78,307
77,570
77,548
75,561
75,357
78,432
72,400
78,376
78,103
73,530
76,430
74,801
December
AbUene ....... ..
Austin ........ ..
Beaumont . •.•• ••
Corsicana ... ... .
Dallas ...... .. ..
EI Paso ..... .. ..
Fort Worth .... ..
Galveston •. •••.•
Houston .. ... .. .
Port Arthur ...•.
Roswell .. .......
San Antonio ....•
Shreveport .•••••
Texarkana· .... ..
Tueson ..••••• •••
Waeo .. ........ .
Wlehita Falls .•••
Acceptance
Reflecting a decrease of $578,376 during
December, the total of bankers' acceptances executed by banks in this district
and outstanding at the close of the month amounted to
~:,385,620, as compared with $1,963,996 on the last day of
~~ovember, and $4,,294,244 on December 31, 1931. Acceptances based on the domestic shipment and storage of goods
Were reduced from $1,799,884 on November 30 to $1,279,54,1 on December 31; those executed against import and exPort transactions declined from $164<,112 on the former date
to $106,079 on the latter date.
Market
Debits to
lndituidua.l
A.ccounts
Charges to depositors' accounts during
December at banks in principal cities in
this district reflected a larger than seasonal increase of 16.8 per cent, the total
for the month amounting to $532,954,,000. This compares
6
1932
$ 4,050
15,422
13,607
2,500
144,561
15,875
55,285
28,581
140,707
4,200
2,063
40,306
28,511
5,020
9,022
11,484
8,708
Percentage
Percontage
Dccamber change over Novomber ohange over
year
1081
1082
month
S 5,200
$ 5,271
- 0.3
- 6.0
10,380
19,404
5,205
181,133
20,330
71,408
27,631
142,580
7, 109
2,580
50,006
26,772
7,447
10,863
13,041
11,381
- 5 .0
-20 ,4
-51.7
-20.2
-21.0
-22.0
+ 3.4
- 1.3
-41.4
- 20 .3
-18.5
- 12.2
-32.5
- 8.7
-17.6
-28 .1
13,553
12,473
2,349
132,077
15,014
50,319
22,400
100,500
3,933
2,115
38,338
10,533
4,063
7,111
11,022
8,468
+13.8
+ 0.8
+ 0.0
+
0.5
+ 5.7
+
0.9
+27.6
+32.0
0.8
- 2.5
+21.0
+20,4
+ 1.3
+30.5
- 1.2
+ 2.0
+
Total.. ..... 5582,054
$026,484
-14 .9
$450,103
+10 .8
·Ineludes the figures of two banks In Texarkana, Arkaneas, located In the Eighth
Distriet.
SlWings
Deposits
A rather general increase of 0.7 per cent
occurred during December in the amount
of savings deposits at 141 banks in the
Eleventh Federal Reserve District, and there was a smaller
d8crease from a year ago than was shown at the close of the
previous month. On the last day of December, savings deposits of reporting banks totaled $141,653,433, which compares with $140,611,303 a month earlier, and $152,087,361
on December 31, 1931. At the El Paso and Port Arthur
banks, the amount reported was larger than a year ago.
SAVINGS DEPOSITS
1
I
l
\
~~:ont .... . .... .. ......
~1;1l8~·.::: ::::::::: ::::::
Gel Worth ................
lia veston .. ...... ... .... . ,
po~ton ... ............
.. . .
Sor /:rthur ......... . .....
n
Sb ntonlo .. ........... . .
Wreveport ........... . . . . .
W~· .. ·· · .. ·· ...... · ·· ..
A1teol~: Falls .. . ..........•
rs ......... . .. . .. ..
Number of
roporting
banks
3
O·
2
4
4
11·
2
8
4
3
3·
88·
Deeember 31, 1031
Number of
Amount of
8avings
savin~s
dopoeitors
depoelts
December 31, 1032
Amount of
Number of
savings
8avings
deposits
depositors
8,154
73,850
10,022
33,520
16,003
05,145
4,153
21,744
22,331
10,344
2,920
52,633
---
$ 3,045,303
25,047,714
3,450,020
11,011,142
0,003,040
30,784,602
1,884,784
14,882,118
0,831,528
5,004,750
2,200,520
28,387,856
5,550
75,871
10,563
34,703
17,652
64,583
4,543
22,528
25,187
10,315
3,058
56,027
---
Novamber 30, 1032
Number of
Ameunt of
savings
8avinlls
depoeitors
dOpoelts
Pereontage ehango
ovor year In
savings deposits
S 3,303,065
- 10.3
- 3.6
+ 7.0
- 4 .4
-18.0
- 5.8
+ .7
- 4.0
-10.8
- 4.0
-11.1
- 0.1
20,013,003
3,214,004
11,512,050
12,080,101
32,000,011
1,821,780
15,503,005
11,020,022
5,801,080
2,543,630
25,720,809
$152,087,301
330,574
$141,653,433
- 6.9
322,424
Total ...............
141
·Only 6 banks in Dallas, 10 in Hou8ton, 2 in Wiehita Falls, nnd 74 in "All others" reported the number of savings depoeitors.
JANUARY DISCOUNT RA'IlES
Dallna
EIPnao
4-7
5- 0
6-8
5-0
to h ~~e~~'::::::::::::::::::::::::::::::::::::::: : :::::::::: :::: ::::::
to e arged on oommodity paper 80eured by wnrohouse receipts, ote .•••.••....•••.
5
4-8
3J.t-7
6-7
6-8
6-8
8
6-8
on eattle loans .............................. ..... ........... . ...........
S 2,000,774
324,375
$140,011,303
25,473,515
3,300,458
11,328,802
0,758,710
30,344 ,213
1,803,001
14,035,830
0,875,060
5,508,051
2,263,200
28,103,018
+ 1.5
+ .7
+ 2.8
- 2.8
+1.5
+ 1.5
+ 1. 7
+1.7
.4
+ .7
.1
+ .8
-
+
.7
Prevailing rates:
to eharged eustomers Ol!lcrime commereial papor suoh na Is now oIiglhle for
te'edlaeount under tbe F eral/Roeerve Aet ........ . ........... .. . . . .... .. ....
to Oharged on loans to other banks scoured by billa reeeivable . ..........•.• .. ••.
I on loana securod by crime 8toek exehange or othor ourrent collateral (not
Deluding loane placed n other market.e through oorr08Pondent banks):
8,210
73,002
10,630
33,621
17,0\)6
65,064
4,083
21,733
22,007
10,352
2,800
53,572
Percentage ehango
over month in
savings deposits
Fort Worth
Houston
San Antonio
4J.t-8
5-6
5-7
5-6
6-8
0
6-8
5)T6
5-8
5-8
6-8
6-8
5-7
5-7
5-7
6-8
6-8
6-8
6-8
7-10
7- 8
7-8
6-7
7
Waeo
~--------------------------------~~~====~~~~~~~~~-------------------------------------------
6
MONTHLY BUSINESS REVIEW
-------------------------------------------------------------------INDUSTRY
Cottonseed
Products
A large seasonal reduction was witnessed
during December in the operations of
cottonseed oil mills in both Texas and the
United States, and activities were again below those in the
same month of 1931. The December receipts of seed at
American mills were less than those in any similar month
since 1924. During the first five months of the current sea·
son the receipts and crushings of cottonseed and the produc.
tion of all products remained considerably below those
operations in the corresponding period of the preceding sea·
son. The stocks of seed at Texas mills on December 31 were
unusually large, and at United States mills they were sub·
stantially above the average for that date. Supplies of oil
and hulls on December 31 at Texas mills were slightly less
than a year ago, while cake and meal, and linters were
greater. Inventories of all products except linters at United
States mills were greater on December 31 th an a year ago.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States
August 1 to December 31 August 1 to December 31
This season Last season This season Last season
Cottonseed received at mills
(tons) . .. . . . •• .. . . .. •..•• ..
1,187,287
4,357,555
1,413,445
3,620,530
Cottonseed crushed (tons) ... ••
863,201
984,658
2,589,763
2,058,060
Cottonseed on hand Dec. 31
(tons) .. . .. . . . . ..... . .. . ...
499,354
442,280
1,328,607
1,400,601
Crude oil produced (pounds) .. . 257,584,067 200,668,303 797,239,580 019,450,115
399,087
458,780
1,165,469
1,325,887
Cake and moal ~roduced (tons)
Hulls produced tons) . .. .. .•.•
252,820
284,437
734,532
828,790
Linters produced (running
102,005
409,220
465,882
127,860
balcs) . .. . •..... . ... . ... •. •
Stocks on hand Dec. 31:
Crude oil (pounds) . . . . ....• . • 32,168,011 32,926,871 99,058,468 81,106,132
88,184
51,017
203,106
Cake and moal (tons) ... . .. •. .
366,626
236,120
226,974
Hulls (tons) . . . . ... •.. •.. . •.•
93,525
96,868
291,177
Linters (running bales) .. .. . . ••
83,549
82,860
283,895
Textile
As reflected by the consumption of cot·
ton at all United States mills, the textile
industry evidenced the usual year-end
decline, but operations were maintained at a level appreciably above the like month of 1931. Total domestic consumption during December was 440,062 bales, as compared with
503,722 bales in November, and 415,401 bales in December
a year ago. During the five months of the current season,
there were 2,34,0,284 bales of cotton consumed, which compares very favorably with the total consumption of 2,191,017
bales in the same period of the 1931-32 season. Most textile mills began 1933 on a high production basis, and reports indicate that they have sufficient orders on hand to
maintain that basis for several weeks. Stocks of cotton held
by consuming establishments on December 31 were above
those a month earlier, but less than a year ago.
Milling
COTTON CONSUMED AND ON HAND
(Bales)
Cotton-growing states:
Cotton consumed .. .•. .. .. ..
Cotton on hand Dec. 81 inConsuming cstablishmcnts .
Public storage and compresses .. ......... . . . ..
United States:
Cotton consumed . ...... ....
Cotton on hand Dec. 31 inConsumlng establishments.
Public storage and comprC68CS ... . ....... . ....
December
1932
371,079
440,062
December Au~ust 1 to December 31
1931
ThIS season Last season
344,206
415,401
1,953,386
1,705,993
1,237,322
1,298,399
9,877,812
10,002,235
2,340,284
2,101,017
1,530,110
1,630,710
10,340,808
10,414,412
The orders recorded on the b ooks of reporting Texas
textile mills on December 31 reflected a small decline fr om
those a month earlier, but were aga.in above those held 00
the same date of 1931. The consumption of cotton and the
production of cloth during December evidenced the usual
seasonal decline and were slightly less than in the closing
month of 1931. Stocks of cotton goods on December 31 were
above those a month earlier and a year ago.
Cotton
Movements
Although shipments of cotton during De·
cember from the port of Houston reflected another large decline, as co~'
pared with the corresponding month of 1931, they were 10
much larger volume than a month earlier, contrary to the
usual seasonal trend. Exports from Galveston, however, feIl
off noticeably from the high level r eached in November,
and were also less than in December, 1931. During the first
five months of the current season shipments from Galvestoi
were 5.8 per cent greater than those in the same period 0
the preceding season, but this increase was more than offset
by a decrease at Houston. Cotton received at these port~
during December was seasonally smaller than a mont
earlier, but at Houston it was greater than a year ago. Stocks
of cotton on December 31 at Galveston were less than II
month earlier or a year ago, while at Houston they werc
larger.
Contrary to seasonal trends, total foreign exports of cotton from all United States ports reached a high level fo~
the season in December, and while they were less than tota
shipments in the final month of 1931, they were 21.2 per
cent greater than the average for December. There were
1,039,795 bales exported during the month, as against 1,012,411 bales in November, and 1,181,031 bales in DeceJ1l '
ber last year. Notwithstanding the three consecutive monthly
declines in exports as compared with a year ago, movements
during the five months of the current season continue substantially above those in the same period last season. Japan
and Germany continue to be the heaviest importers of American cotton, having taken 44 per cent of the season's aggre·
gate exports.
---'"
-
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Balca)
December
1932
Receipts . . . . .... .. . . ..... . .. .
260,995
Exports . . ..... .. ... . . .... •. . 315,487
Stocks, December 31. . ...... . . .. ... ...
December AU~lIst 1 to December 3;
ThIS Beason Last scns o
1931
311,078
1,460,766
l,5J1,O~~
976,0
351,598
1,034,006
.... ... . 888,441 923,514
~
COTTON-GALVESTON STOCK STATEMENT
(Bales)
For Great Britain . .. ......•. . ...... . .. •.. ... . . .. .....
For Franco . ... . .. .... ... ... .. . . . . ... . ... .. .. . . .. .. . .
For othcrforcign ports . ... . . .. .........•....... . .. , ...
For coastwise ports . . . ... . .. . .. .. . .. .. . . .... . . .. . . . •..
In comprC68CS and depots . . . . . . .. . ........ . ... ..... • . ..
Tota!. .... . . . . .. .. . .... . ...... . .... . .. .. . .
Dec.31,
1932
16,000
7,000
52,500
2,000
819,941
-888,441
-
--
Dcc. 31,
1031
4000
4:000
52'b~
2,
860,814
---923,514
~
~
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
Decombcr
1032
Receipts ...... . . . ... . .. . • .. . . 841,740
Exports . . . .. .. .. . . . ... . . .. . . 301,321
Stocks, December 31. . . •. .. .. . ..... ...
Docomber
1031
318,432
417,310
. .......
-----
bcr 31
August 1 to DtCCr sQ380n
This season as 016
1,966,040
N~~'609
1,257,654
1'600'944
1,780,784
, ~
MONTHLY BUSINESS REVIEW
7
Major purchasers of crude oil in Texas and adjoining
states have announced material reductions in posted prices,
most of which were effective on December 15.
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORTS-(Bnio.,)
AU~U8t
1 to Deoember 31
ThIS senson Loat senson
OIL PRODUCTION-(Barre1s)
~ceipts....... ...... . ........... .... .... . ........... 5,751,196
6,282,742
, pOrlll: United Kingdom. ...........................
730,304
587,771
Franoo.. ... . .. .. . . . . ...... . . ..... . .. . . . . .. .
508,859
161,196
Italy...... .. .. .. .. .... .. .. .. . .... .. .. .. .. ..
371,216 ; I 323,201
Gormnny.. .. ... . .. . . .. ... . .. . ... . ..... . . .. .
946,998 .. ,. Q80,447
Otbor EuropO...... ........ .. .. .............
482,337 ~t 374,875
Jaran... .. . . . . . . .. . . . .. . . . . ... . . . . . . . . . . . ..
938,981 '
993,041
T
AI other oountries.... .. .. .. .. .... .. .. .. .. ...
207,358
814,545
Sotal Coreignports. . . .... ......... . ........... ... .... 4,246,048
4,035,056
toeks at all United Stntes ports December 31 . . . . . . . . . .. 4,808,982
4,705,505
Nortb Texas .. ... . ......•• . ..
Centrnl West Toxas .... ..•....
East Contral Texas ....... . ..•
Texas Coastal.. .. .. ..........
Sou th Texas ....... . .........
Deoember, 1982
Dnily Avg.
Totnl
2,911,150
93,908
6,730,900
184,868
9,426,300
304,074
4,186,050
135,034
1,626,900
52,481
---
Total Texas ............ . 23,881,300
New Mexioo .................
874,250
North Louisiana ... .. ... . .. . .
891,600
SPOT COTTON PRICES-(Middling basis)
(Conts per pOund)
i~t.·
. . . . .·. ·. . . .
December,
High
6.20
6.06
5 .65
5.95
6.00
Total Distriot ............ 25,647,150
Jan.14,
1983
6.25
6.18
5. 70
6.10
6. 15
1932
Low
5.70
5.56
5.15
5.45
5.55
Increaso or dcor088O over
November, 1932
Daily Avg.
Total
192
+ 88,150
2,282
+ 116,400
-2,782,200 -102,876
434
+ 148,050 +
519
+ 36,900
-
-
- - - -105,435
-770,365
- -2,392,700
-
28,202
28,761
+
-827,328
-
72,250
12,000
---
-
3,348
539
-2,452,350 -109,322
DECEMBER DRILLING RESULTS
North Toxas .. .............
Contral West Texas . ... .....
East Contral Texna . . ...... .
South Texna ............ .. .
Toxas Coastal. .. .. . .... . .. .
Petroleum
Reflecting a further substantial curtailment, the production of crude oil in the
Eleventh Federal Reserve District during December amounted to 25,647,150 barrels, as compared with 28,099,500 barrels in the previous month, and 30,722,4,00 barrels in the
sam.e month a year ago. The sizable reduction was chiefly
attnbutable to the shut-down order which was in effect in
East Texas from December 17 to the close of the month, as
a larger volume of output was reported for other sections
of t~is distri~t with the exception of New Mexico. A further
dechne also occurred in drilling activity during the month,
as ~videnced by the completion of 670 wells in December,
against 760 in November. The initial yield from successful
~ens totaled 2,697,297 barrels, as compared with 3,569,003
In the preceding month.
Total Texna ... . .
Now Mexioo .. . ............
North Louisiana .......... ..
Deoember totals, distriot .. ..
November totols, distriot . . . .
Complotions
99
44
345
78
62
ProduoeMl
50
20
380
51
45
Gas
wells
3
8
2
..
---623
496
8
6
41
-670760
5
13
-514
585
4
-1217
FaUures
46
21
15
20
17
-1191
24
-144
158
Initial
produotlon
11,021
3,480
2,578,852
17,849
60,172
2,671,374
23,888
2,085
2,697,297
3,569,003
CRUDE OIL PRICES
Texas Conatal (35 gr. and above) ..... .. ....... . ...... ..
North Toxna and North Louisiana (40 gr. and above) .. .. .
"Price paid Cor oil, 40 gr. and above.
Jan.13,
1933
$ .91
.77
Jan.12,
1932
$ .86"
.85
(Oilstatlstl08 oompiled by The 011 Weekly, Houston, Texna)
Building
.The daily output from Texas fields during December,
hhlch averaged 770,365 barrels, was 105,435 barrels less
an in November, and 149,333 barrels below the level of
r ecember a year ago. On the basis of daily yield, all porns of the district except the Gulf Coast showed decreases
rom the previous month. The reduction in East Texas
amlounted to 102,876 barrels, but the other declines were
re atively small.
\V
b
r
The valuation of building permits issued
at principal centers in this district during December, which amounted to $1,115,348, was 80.8 per
cent higher than in the previous month. The decrease from
the corresponding month a year ago amounted to 34,.3 per
cent, as against 77.8 per cent in November. Five of the reporting cities showed increases. Aggregate permits issued
during the year 1932 amounted to $16,975,085, as compared
with $39,523,179 in 1931, the reduction being 57.1 per cent.
BUILDING PERMITS
December, 1032
December, 1081
No.
No.
Valuation
Pereentage ehange
valuation ovor
ycar
Valuation
---- -Am
10 S 5,503
21 $ 43,241
A""tr~~~·:. :::: :
42
48,752
85,361
60
Boa
umont ..... .
Datro'!s Christl..
El Paso .. • .... ·
}Ie t W ........
orlh .... .
Oa veston
......
lio
~stn
...... :
Po
Sa~ An thqr ....
tomo. ...
Sb rOVOpOrt
. . • ..
Wa
Co
l
WI'O~ia'FIiI~:::
Total. .. .. .
~
50
16
142
24
52
56
02
21
119
56
10
10
12,845
44,108
59,884
18,080
73,950
521,810
245,891
4,831
86,803
10,276
26,653
5,394
68
34
188
24
02
78
149
28
103
105
13
10
40,650
16,055
303,657
17,425
258,413
28,036
350,400
6,112
445,741
30,870
10,900
1,815
--------700 $1,115,348 1,023 Sl,698,781
- 87.3
- 42.0
- 68.4
+175.3
- 83.5
+ 0.0
- 71.4
"
- 20.8
- 21.0
- 91.8
- 66.7
+144.4
+197.2
- 34 .3
Nevember,1932
No.
Valuation
14 S 5,170
48,006
03
18,606
88
27
8,678
270
113,780
26
84 ,656
106,577
87
14,011
84
137,110
140
28
3,656
40,788
113
39,187
86
46,909
18
13
2,920
-1,057
--S 616,858
Pereentage ohange
valuation ovor
month
6.3
+
.3
5.6
--+400.3
- 47.4
- 45 .2
- 30.6
+
+
+
"
70.3
82.1
10.8
78.8
48.2
84.7
--+ 80.8
Twelve Months
Peroentage ehango
1932
1031
valuation over
period
No.
Valuation
No.
Valuation
242 $ 287,695
522 $ 2,737,571
- 89.5
1,023
5,175,415 1,132
2,317,013
+123 .3
1,003
298,505 1,101
1,097,354
- 72 .8
371
182,716
565
496,150
- 03.2
8,147
2,352,222 8,621
4,750,223
- 50 .5
457
367,412
770
061,756
- 61.8
1,402
1,430,930 2,091
5,797,910
- 75.3
1,550 1,010,923 1,439
2,542,278
- 59.9
2,283
2,874,040 3,547
11,074,450
- 75.4
90,532
:
4
16
667
017,592
- 90.1
2,057
1,586,708 2,608
3,281,862
- 53 .2
1,368
458,033 1,758
087,141
- 51.1
381
401,280
308
1,860,411
- 78.4
179
490,674
128
150,568
+231.9
15,829 $16,975,085 20,342 $39,623,179
- 57 .1
" Iner088e over 1000 par oent
Cement
A recession somewhat larger than seasonal was reflected in the activity of
eXas Portland cement mills during December. Production
l'
of cement totaled 289,000 barrels, and while that amount
was 17.7 per cent less than the output in November, it was
only 0.7 per cent below that in the like month of 1931.
-
MONTHLY BUSINESS REVIEW
8
Shipments of cement declined to the extremely low level of
165,000 barrels, which represents 'a decline of 53.1 per
cent from the previous month, and 22.9 per cent from December, 1931. Stocks were increased considerably during
the month and on December 31 amounted to 677,000 barrels, as against 546,000 barrels a month earlier, and 726,000
barrels on the final day of 1931.
Production of cement in Texas during 1932 totaled
3,750,000 barrels, which was 39.3 per cent less than the
6,182,000 barrels produced in 1931. Shipments aggregated
3,798,000 barrels during the past year, as compared with
6,268,000 barrels in the preceding year.
PRODUOTION, SHIPMENTS, AND STOOKS OF PORTLAND OEMENT
(In thousands of barrels)
% ohange from Jan, through
Dco., Nov.,
Dco.,
Dco. 31 % ohange
1932 1982
1931
1932 (iom year
Produotion at TCXll8 mWS........... 2S9 -17.7 .7
3,750
-39.3
SWpmonlB from Tox.. mills.......... 166 -63.1 -22.9
3,79S
-3S.6
Stocks at end of month at Tex.. mills 677 +24.0 - 0.7
rI
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board as of January 28, 1988)
Volume of industrial production declined in December
by slightly less than the usual seasonal amount, while factory employment and payrolls showed a decrease somewhat
larger than is usual at this season. The general level of
wholesale commodity prices, after declining in December,
showed relatively little change in the first half of January.
the decline was about one-third, reflecting decreases rang·
ing in the first eleven months, from 8 per cent for crude
materials to 45 per cent for finished manufactures. Value
of imports into this country during 1932 was smaller than
in 1931 by 37 per cent.
PRODUCTION AND EMPLOYMENT
Wholesale prices of many leading commodities, includ·
ing non-agricultural as well as agricultural products, declined from November to December, and the monthly indeJ(
of the Bureau of Labor Statistics showed a decrease froJII
63.9 per cent of the 1926 average to 62.6 per cent, as COJIl;
pared with 68.6 per cent a year ago. In the first half °d
January wheat prices advanced from the low levels reached
at the end of December and cotton prices also increase
somewhat, while prices of silk, rubber, and gasoline de'
clined considerably.
In December the Board's seasonally adjusted index of
industrial output showed an increase from 65 per cent of
the 1923-1925 average to 66 per cent, the level prevailing
in September and October. There was a substantial increase
in output of automobiles in connection with the introduction of new models, and lumber production showed a less
than seasonal decline. In the textile industries there were
decreases in output in accordance with the usual seasonal
tendency. Activity at steel mills showed a substantial decline in December, followed by a seasonal increase in the
first three weeks of January. Volume of employment in
manufacturing industries decreased from the middle of
November to the middle of December by somewhat more
than the usual seasonal amount. Working forces were reduced in the clothing, leather, and building material industries, while at automobile factories there was a substantial
increase in employment. Value of construction contracts
awarded, as reported by the F. W. Dodge Corporation, declined by more than the usual seasonal amount in the fourth
quarter, following a non-seasonal increase in the third
quarter. Contracts awarded in the first half of January
showed an increase, as measured by daily average figures,
reflecting the award of large contracts in connection with
cons~ruction· of a bddge at New Orleans.
DISTRIBUTION
Freight traffic decreased in December by an amount
somewhat smaller than is usual at this season. Sales by department stores increased by somewhat less than the usual
seasonal amount and were smaller than a year ago by 23
per cent, reflecting in part a decline in prices.
FOREIGN TRADE
Value of exports in December was smaller than in December, 1931, by about one-fourth. For the year as a whole,
WHOLESALE PRICES
BANK CREDIT
In the four weeks from December 21 to January 18, the
stock of monetary gold increased by $80,000,000 and th er
was a seasonal decline of $130,000,000 in the volume 0
money in circulation, a considerably smaller decline thr.
usual, reflecting a smaller than usual increase for the ho !
C
day trade in December and some withdrawal of funds a '
companying bank suspensions in the middle of Januarf
The reserve funds arising from these two sources were. a<1S
sorbed in part by a reduction of member bank borroWJDof
at the Federal Reserve Banks and through a decline B.~.
$73,000,000 between January 4, and January 18 in the.. S
serve bank holdings of United States Government secur1t~ ;
Member bank reserve balances, however, increased furt ea
during the four-week period by about $100,000,000 tOre.
level of $575,000,000 higher than a year ago. Excess 1'al
serves of member banks, which have been in substan.! d
volume for several months, also increased during the pet1?n;
Volume of member bank credit continued to decline d~d~n~
December and the first part of January. From the m! of
of December to January 11, total loans and invest~edts /lY
reporting member banks in leading oities declme loll'
$165,000,000 to a level about $350,000,000 above the ks'
point of last summer. The decline was entirely in the bannge.
loans, while investments showed relatively little cht
Money rates in the open market continued at low le've s.
f
@FedFRASER