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MON1HLY BUSINESS REVIEW
OF THE

FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents

C. C. WALSH
Chairman and Federal Reserve Agent

(Compiled January 15, 1934)

Dallas, Texas, February 1, 1934

Volume 18, No. 12

This copy is released for pubIication in morning p apers--

J an. 31

DISTRICT .SUMMARY
commercial failures remained near the low November figure
and the liabilities of defaulting firms were smaller than in
any month since July, 1927.

THE SITUATION AT A GLANCE
Eleventh Federal Rcserve Distriet
December

Change from
November

1033

Bank debits to individual account. lat 17
eities) ..... . . . .. . ... .. . ....... .......... .
Department store .ales ..................... .
Reservo bank loans to member bankB at ond

$504,304,000
573,107
00 .6%
707,213

R~~~~n~~k ~atio at 'o l;d 'or' ;~onih.' .' : : :: : :: :

Building p<;rmit valuation at larger conters .. . .
Conunoro181 failures (number) .. ... .......... .
Commercial failures (liabilities) .... .. . ... ... .
Oil produetion (barrels) . ... . .. . ......... ... .

33
$

303,200
20,720,550

+ 12 .0%
+ 63.3%

-

+

54.5%
0.3 points
10.7%

+ 42.51 "~
3.
+ 3.0

-

0

A stronO'er undertone of confidence and a noticeable expansion i:: the demand for merchandise were outstanding
developments In this district during the past month. Sales of
department stores in principal cities reflected an increase of
63 per cent over the previous month, which was considerably
larger than seasonal, and exceeded those of the closing month
of 1932 by 22 per cent. While. wholesal~ distribution is
Usually quiet in December, sales m some Imes were greater
than in November, and in others the declines were less than
seasonal. Sales in all reporting lines were substantially
larger than a year ago. Due to the active consumer buying,
many retailers had to make replacement p~rchases ~o meet
the demand. Collections were well sustamed durmg the
lllonth. Debits to individual accounts were 12 per cent
larger than in either the previous month or the corresponding month last year.
Reflecting the improved trade conditions, the number of

General rains over a large portion of this district since

l~te in December have greatly benefited winter crops and

hvesto:k ra?ges. Nevertheless, there remains a deficiency in
sub-SOlI mOIsture due to the fall drouth, and much additional
rainfall is needed to overcome this shortage. Farmers generally.ha~e made good.~rogress with winter plowing. Ranges
are stIll m poo~ condItIon over a large area, but livestock
have held up faIrly well.
Member bank deposits showed a further expansion in
December. The daily average of combined net demand and
tiI?e deposits .amounted to $680,863,000 as compared with
$654,,145,000 m November, and $613,028,000 in December
1932. This figure is the highest reported since late in 1931'
and is $100,000,000 above the low point reached in August:
1933. Federal reserve bank loans to member banks totaled
only $44.0,000 on January 15, as compared with $1 003000
a m?nth earlie~, and $4,369,000 a year ago. Follo~ing' the
ChrIstmas buymg season there has been a substantial return flow of Federal reserve currency. The actual circulation
on January 15 totaled $51,909,000 as compared with $54,102,000 on December 15, and $3,7,515,000 at the middle of
January last year.
Construction work showed some improvement during the
month. The valuation of building permits in December Was
1~ per cent larger than the low November figure, but was
still 29 per cent below that a year earlier.

BUSINESS
Business at wholesale in this district durWholesale
ing December made a generally favorable
Trade
showing, and the underlying sentiment of
confidence on the part of both retailers and consumers continued to be well in evidence. Increased sales over the preceding month were reported in the lines of farm implements
and drugs, the latter being contrary. to seasonal tendency. In
two other lines the decreases occurrmg were of less than the
usual seasonal amount. All lines continued to show a substantial expansion as compared with the same month a year
ago, and in three cases the increase was larger than in No-

vember. Aggregate sales reported during the last six months
of 1933 reflected gains over the same period in 1932 ranging
from 4,.4 per cent in the case of drugs to 136.4, per cent in
the case of farm implements. Stocks on hand at the close of
December were smaller than on November 30 in every reporting line. A decline from the previous month was reflected
in the total volume of collections during December but the
reduction was smaller than seasonal.
'
Reports from wholesale dry goods firms in this district
indicate that business held up well during December. While

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

2

MONTHLY BUSINESS REVIEW

sales totaled 41.0 per cent less than in the previous month,
this reduction is somewhat smaller than usually occurs in
this month. An expansion of 4,2.5 per cent over December,
1932, was registered, whereas the like increase amounted in
November to 27.0 per cent and in October to only 8.5 per
cent. Inventories on December 31, while slightly less than a
month earlier, showed an increase of 78.3 per cent over a
year ago. A decline of only 1.4 per cent as compared with
November was reflected in the volume of collections during
the month.
December witnessed a further contrary to seasonal increase
of 0.9 per cent in the demand for drugs at wholesale, and
sales were in 4,.3 per cent greater volume than in the same
month a year ago. Business was somewhat spotty, being
appreciably better in some areas than in others. Inventories
are being held at low levels, the total on December 31 being
less than a month earlier or a year ago. Collections were
larger than in November.
The business of wholesale hardware firms in this district
reflected a smaller than seasonal decrease of 2.1 per cent as
compared with November, and was on a scale 67.7 per cent
larger than in December, 1932. Despite the further improvement, buying in certain scattered sections followed the downward trend which is generally to be expected at the yearend. A slight reduction in collections was reported.
While the demand for groceries at wholesale in December
showed a seasonal recession of 10.8 per cent, the comparison
with a year ago continued to be favorable. The month's
sales were 14.3 per cent above those in the closing month of
1932, and the total volume between July 1 and December 31
was 12.9 per cent larger than in the same period in the
earlier year. Collections declined seasonally in December
by 7.8 per cent.
Reflecting to some extent the effect of seasonal influences,
the distribution of agricultural implements through wholesale channels during December was on a scale 8.2 per cent
larger than in the preceding month. As compared with the
same month last year there was an increase of 312.9 per
cent. Total dollar sales during the latter half of 1933 showed
an expansion of 136.4 per cent over those in the correspond.

ing period in the previous year. As is usual at this season,
collections fell off appreciably during the month.
CONDITION OF WHOLESALE TRADE DURIr-fG DECEMBER, 1933
Peroentage of Inorense or deorenso InNot Sales
Net Sales
Stooks
Ratio of collcoDeo., 1983
July 1 to date Dco., 1933 tions during Deo.
oompared with compared with compared with to accounts and
Doc., Nov., snmo perIod Deo.. Nov., not.. outstanding
1982
1933
last year
1032 1933 on November 30
Grocories ........ . + 14 .3 - 10.8
+ 12 .9 +26.4 - 6.8
73.6
Dry goods ........ + 42 .5 -4l.0
+ 27 .1 +78 .3 - 2.0
37 .0
Farm Implements .. +312. 9 + 8.2
+130.4 - l.2 - 2.8
7.1
Hardware .. ...... + 67 .7 - 2.1
+ 35 .2 - l.7 .7
47 .2
+ 4.4 - 5.7 - 3.0
Drugs ........ .. .. + 4.3 + .9
48.1

Retail
Trade

The active demand for merchandise,
which has been in evidence during the
past several months at department stores
in principal cities of the Eleventh District, increased further
in December. The total dollar volume of sales was 63.3 per
cent greater than in November, which was considerably
larger than the average seasonal increase for that month,
and was 22.1 per cent above that in December, 1932. It is
significant to note that the increased buying during the last
five months of 1933 was sufficient to more than offset the
declines registered in the eady months of the year, and as
a result total distribution of merchandise during the entire
year was 1 per cent greater than in 1932. Due to the larger
than seasonal increase in sales, this bank's seasonally ad·
justed index advanced from 66.3 per cent of the 1923-25
average in November to 78.2 per cent in December, which
is the highest figure recorded since December, 1931.
Inventories held on December 31 were 25.4 per cent less
than a month earlier, but they remained 8.3 per cent greater
titan those on hand a year ago. The stock turnover of all reporting firms during 1933 was 2.97, as compared with 2.75
in 1932.
December collections reflected a seasonal increase over
the previous month, and were proportionately greater in
volume than in any month since November, 1929. The ratio
of collections during December to accounts outstanding on
the first of the month was 36.8 per cent, as against 35.0
per cent in November, and 32.9 per cent in December, 1932.

BUSINESS OF DEPARTMENT STORES
Total sales (percontage):
December, 1933, compared with December, 1932 . . .... . .. . ...... ... ..• .. . .• ... . ..
December, 1933, compared with November, 1933 . .. .. .. . .. . ..... . ..... . . . .. .. ... .
January 1 to date compared with eamo period last year ... . . . . .. . .. . ..•.. . . . ..... .
Credit sales (percontage):
December, 1933, compared with December, 1932 . . .... . . . . . . .. . . ....... ...... . .. .
December, 1933, compared with November, 1033 .. ...... .. ... ....... .. .......... .
January 1 to dnte compnred with slUDe perIod last year ......... . .... , . . ... .. .... .
Stoelal on hand at end of month (percentage):
December, 1938, compared witb December, 1932 ...................... .. . ... .... .
December, 1985, compared with November, 1933 .. ... . . .... . . .. . .... .... •.... ... .
Stock turnover (rate) :
Rato of stock turnover In December, 1932 .. .. .. .. ..... ........... ..... ... .... . ..
Rate of stock turnover in December, 19S3 ............ ....... .. . .. .. .. .. .... ... ..
Rato of stock turnover January 1 to December 31, 1932 . ..... . .... . .. . .. . .. .. .. .. .
Rate of stock turnover Janunry 1 to December 31, 1933 . .............. . ... . .. . ... .
Ratio of December eollectioOB to accounts receivable outstanding December I, 1033 ... . . .
Indexes of department storo sales:
Unadj usted- December, 1933 . . . . .• .. . .... .. . .. . . . .. . .... .. ... . ... . . . .. ..... ..•
Unadjusted-November, 1038 .... ...... .... .......... . . .... . ... ... . ..... ...... .
Adjusted- December, 1933 ... ............... . ....... .. .... .... .... ..... . ... .. .
Adjusted- November, 1933 .. . .... ........ .. .. .... .. .. .... ......... . .... ... .. . .
Indexes of departmont etore stoclal:
Unadjusted-December, 1933 ... .......... .. . . ...... ..... ..... .. .. ... ... ..... ..
Unadjusted- November, 1033 ..... .. ... .. .... . . . . . ... ....... .... . ........ . ... . .
Adjusted- December, 1038 .. .... .. .. .. .... . ..... ... . .. . .. ....... . ...... . ..... .
Adjusted-November, 103a ...... . .. .. .... . .. . . .. ... .. .. .. . . . .. .. •.... , ... . .•..
'Subject to revi,(on.

D.ll..
+29 .8
+64 .3
+ 3 .0
+30 .3
+56 .6

+ 3.1
+ D.8
-24.2
.38
.45
2. 93
3. 20
30 .0
121.7

73 .5
76 .1
62.3
43 .3
67 .7

40 .2
62.0

Fort Worth
+22 .3
+81.2
+ .0

Houston
+2l.2
+51.5
6.7

San Antonio
+15 .0
+50 .9
- 6.8

Others
+16 .3
+65.4
- 2.3

Total DIstrict
+22 . 1
+63.3
+ 1.0

+24.1

+22 .2
+41 .8
9. 7

+18.4
+53 .1
- 3.9

+12.2
+57 .7
- 4.3

+23.1
+55.3
+1.8

+80.1
-2l.8

+6.4
-21.4

+ 6.6
-27 .6

+ 8.3
-26 .4

+70 .8

+ 2.7
+ 2.6
-31.2
.36
.44

2.33
2.66
2D .2
166 .0
86.0
88 .1
71.7
54.8

79 .0
66 .2
GO.9

.46
.43

2.90
3.08
30.7
148 .3
98 .0
90 .4
83.8
61.3
69.4
66 .2
60 .3

.48
.40

3.14
3.28
42.4
101.1
62 .4
115 .2
64.3
36.8·
46 .6
40 .2'
41.0

.37
.30
2.46
2.00
36.2

.3g
.44
2.75
2.97
36 .8
127 .6
76.Q

78.2
D6 .3
47 .2'
04.6
64.3'
67.7

MONTHLY BUSINESS REVIEW
Commercial
Failures

The business mortality rate in this district during December continued at approximately the same low level as in the
preceding month, and the indebtedness of insolvent firms
evidenced a further substantial decrease, which is contrary
to the usual tendency in the closing month of the year.

3

Figures compiled by Dun & Bradstreet, Incorporated, showed
a total of 33 insolvencies in December, with liabilities of
$303,290, as compared with 32 defaulting firms in the previous month, owing $527,099, and 75 suspensions in December, 1932, with an indebtedness amounting to $1,64.3,815.

AGRICUL TURE
Crop Conditions

The agricultural situation was greatly
improved by the light to heavy rains
which fell over most of this district during the last days of December and the first half of January.
Some areas have ample surface moisture but in the sections
where the rainfall was light there is still a deficiency in topsoil moisture. Due to the prolonged fall drouth, a deep subsoil season is lacking over most of the district, and heavy
rains will be needed during the remaining winter months
to store up adequate subsoil moisture reserves. Harvesting
operations have beeD,< completed in most sections and farmers
generally have made good progress with land preparation.
Small grains, which were in poor condition on December
1, suffered further deterioration during most of the month,
but have shown considerable recovery since the rains set in
late in December. Plants have taken on new growth and a
good root system is developing. There are some areas, however, where more rain is needed to sustain growth. The
Department of Agriculture reported that the acreage seeded
to wheat during the fall of 1933 was smaller than that
seeded in the fall of 1932 in every state attached to this
district. The area seeded to wheat in Texas in the fall of
2,000 acres as compared with 4,,491,000 acres
1933 was 4,041
in 1932, and was the smallest area seeded since 1929.
The Department of Agriculture reported that the stocks
of wheat oats and corn on farms in Texas, Oklahoma, New
Mexico ~nd Louisiana on January 1, 1934" were materially
smallel: than g year ago. Farm stocks of wheat in Texas on
January 1 this year were 1,172,000 bushels as compared
with 5,376,000 bushels a year ago; farm stocks of corn were
4,0580000 bushels as against 62,016,000 bushels; and farm
stdcks ~f oats were 7,907,000 bushels as compared with 20,988,000 bushels on January 1, 1933.

Weather conditions during December were very unfavorable for the development of commercial vegetable crops in
Texas. The Department of Agriculture reported that moisture
conditions were generally favorable in the Lower Rio Grande
Valley and that most crops there showed improvement in
December. On the other hand, the continued drouth in other
non-irrigated counties, and the scarcity of irrigation water
in some localities resulted in a marked deterioration in the
condition of growing crops.

Crop Production
and Value in

According to the December 1 report of
the Department of Agriculture the farm
1933
value of crops in Texas, exclusive of
money received from the Government on
cotton and wheat acreage reduction contracts, amounted to
$353,378,000 as compared with $233,164,000 in 1932. This
increase in value resulted from the higher farm prices of
products as price advances were registered for every major
crop and most .minor crops. The production of most crops
reflected a declme due to the smaller acreage harvested and
to unfavorable weather conditions. In the case of small
grains and most feed crops there was a smaller acreage
harvested and the early summer drouth reduced yields. The
per acre yield of cotton, on the other hand was the highest
in t\~enty-one years and because of this fa~t, the total productIOn almost equa~ed that of a year ago despite the acreage
taken out of productIOn through the plan of the Agricultural
Adjust~nent Administration. The farm value of crops produced m other states attached to this district likewise showed
a substantial increase over 1932. The following table, compiled from the records of the United States Department of
Agriculture, gives the comparative figures on the production
and value of Texas farm products and the value of farm
products in other states attached to this district.

COMPARATIVE PRODUCTION AND VALUE OF TEXAS FARM PRODUCTS AS COMPILED BY THE UNITED STATES DEPillTMENT OF AGRICULTURE
Produotion

lnorense or deorenso
in produotion

Commodity
1033

Cotton (lint) ............... ... .......... .
Cottonsood ............. . ............ .. · .
Corn ............ . ...... . . . . .............
Wheat .. . ......... .. .... .. ....... . . .....
Oats ... ...... ............ . ..............
Barley .... .. . . .............. ...... ......
Grain sorghums . ... ........... ...... ... ..
lUoo . .. ..... ... ......... . .. ..... ·. ···· .. ·
Hay (tame and wild) ..... ........ ...... ..
Broomoorn ... . . ..... . ............ ... ... .
PototoC81whitol"'" ... .. .............. . .
Potatoes sweet ................ .. .......
Peanuts ....... .. ..... . ..................
Pecans .. ........... . .. .. . . .... ... .......

1082

4.4 75,000 b,les
l,fl04,000 tons
74,824,000 bushels
13,022,000 bushels
20,808,000 bushel.
1.720,000 bushels
46,508,000 bushels
7,4n,000 bushels
682,000 tons
1,200 tons
3,648,000 bushels
6,240,000 bushels
128,340,000 pounds
24,000,000 pounds

4,500,000 bales
2,006,000 tone
102,726,000 bushels
28,203,000 bushels
41,970,000 bushels
3,570,000 bushels
63,008,000 bushels
0,065,000 bushels
826,000 tons
1,300 tODS
4,154,000 bushels
7,000,000 bushels
125,050,000 pounds
10,500,000 pounds

1038

bales
- 25,000 tona
-27,002,000 bushels
1~,000

- 15,271,000 bushels
-21,108,000 bushels
- 1,850,000 bushels
- 10,500,000 bushels
- 1,592,000 bushels
144,000 tons
100 ton.
506,000 bushels
- 1,360,000 hushels
+ 2,390,000 pounds
+ 4,500,000 pounds

-

Te.os-Total farm value of 14 crops listed abovo ......................... . ....... .. ... .. ... ....... ... .... ..
Texos-Totnl farm value of all er0r.·"" ..................................... . .................... ..... ..
Oklahoma-Totnl farm value of at orops· ......... . .......................................................
Louisiana-Total farm value of all crops· . . .. ...... ........ ...... ........................... .. ............
New Mexico-Total farm value of all crops· ...............................................................
Ari ..ona Total farm value of all crops· ....... .. ... .. ...... . . . ... . ........ . ................... ... .........
·Bnsod on 64 prinoipal crops.

Livestoclc

Winter ranges and small grain pastures
showed a material improvement following the light to heavy rains which fell over a large portion

Vnluo
bnsed on Doc. 1 farm price
(OOO's omitten)
1932

$205,850
26,321
38,100
8,985
7,007
757
10,068
6,053
5,214
126
2,901
3,432
3,080
1.458

$126,000
10,650
28,027
7,022
5,457
007
11,34.1
3,626
4,405
46
3,100
2,432
1,511
830

$320,402
358,378
122,755
67,082
17,025
15.984

$207,653
233,164
74,890
54,556
0,878
12,494

Increase or decrease
in value

+$ 79,850
9,071
+
+ 14,533
1,063
+ 2,450
+
150
+
7,727
+
2,427
+
809
+
80
+
208
1,000
+
1,569
+
628
+

-

+$121,740
+ 120,214
+ 47,885
+ 13,420
7.147
+
3,400
+

of the district's range territory late in December and early
in January. There are still some areas where little or no rain
has occurred and moisture is urgently needed. The long

4

MONTHLY BUSINESS REVIEW

drouth caused a deficiency in soil moisture and much addi·
tional rain will be needed to insure good spring and summer
grazing. Considerable feeding on the ranges and generally
mild temperatures have aided in maintaining livestock in
fairly good condition.
The condition of ranges showed a further decline during
December and on January 1 was 12 points lower than a
year earlier. Cattle were rated at 74 per cent of normal condition on January 1 as compared with 76 per cent on Decem·
bel' 1 and 82 per cent a year ago. The condition of sheep declined 3 points during December and was 12 points lower
than on January 1, 1933. There was little change in the
condition of ranges and livestock in Arizona and New Mexico during the month.
A further decline in the receipts of cattle,
calves, and sheep at the Fort Worth mar·
ket was registered between November and
December. As compared with a year ago, the December arrivals of cattle were about the same, calf receipts were sub·
stantially larger, while the number of sheep yarded was
considerably smaller. The receipts of hogs again showed a
substantial increase over both the previous month and the
same month last year.

4fter the turn of the year, however, trading became more
active, demand was stronger, and prices for nearly all classes
strengthened. Hog prices were somewhat erratic and at the
middle of January they were slightly lower than a month
earlier. The sheep and lamb market remained generally
steady during December and then advanced somewhat in
the first half of January.
FORT WORTH LIVESTOCK RECEIPTS
(Number)

Cattle . ... ... ... .
C.lves ... ...... .
Hogs ........... .
Sheep ......... ..

December
1933
24,174
23,081
26,861
18,292

December Change over November Chango over
1932
year
month
1933
-9,023
23,976
83,197
+ 199
28,735
-4,764
17,150
+ 6,881
15,803
22,426
+4,156
+11,058
31,712
-7,714
- 13,420
26,006

Movements
and Prices

Trading in most classes of cattle was slow during the
greater part of December and prices drifted to lower levels.

COMPARATIVE TOP LIVESTOCK PRICES
(Doll.rs por hundredweight)

Beef steers .... ...... ..... . .............. .
Stoeker steers ......................... .. .
Butoher oows ........................... .
Stocker oows ........ .. .................. .
Calves . .................. ............. . .
Hogs ........... ...... .................. .

r!~Cs:::: :::: ::: :::::::: ::::::: ::::: :::

Deoember
1933
54 .65
8. 00
3.00
2.60
3.75
3.90
3.25
6.25

Deoember
1932
$5.25
5.15
3.00

5:25

3.50
2.00
4.75

November
1933
$5.00
3.90
3.00
2.20
3.75
4.70
3.25
6.25

FINANCE
The past month witnessed a further recession in Federal reserve bank loans to
member banks. The total of $44.0,000 on
January 15 was the lowest figure reached
since the early days of the System, and compares with
$1,003,000 on December 15, and $4,369,000 on January 15,
1933. There were only 13 banks borrowing from the Federal
Reserve Bank on January 15 as compared with 23 banks a
month earlier, and 120 banks a year ago. Bills discounted
for other than member banks amounted to $617,000 on
January 15. Holdings of bills bought in the open market
were increased from $4,54,2,000 on December 15 to $10,225,000 on January 15, and the latter figure compares with
holdings of $856,000 on the corresponding date last year.
There was no change during the month in this bank's holdings of United States securities. The reserve deposits of
member banks, which reached a new high point in December, subsequently declined and amounted to $94,443,000 on
January 15 as compared with $102,867,000 a month earlier,
and $46,683,000 a year ago. The actual circulation of Fed·
eral reserve currency reflected the usual seasonal decline
following the Christmas holidays. The total circulation on
January 15 amounted to $51,909,000, which was $2,193,000
Operations oj
the Federal Re·
8erve Bank

CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)

Total eash reserves . . .. . . . . .. . . .. . . .. . . . ..
Discounts for member banks.... . .. . . . . . . ..
Other bills discounted. ............ ... .....
Bills bought in open market. . . . . . . . . . . . . . .
United States securities owned....... ... ...
Other investments............. .. .... .....
Total earning llSBets. . . . .. . . . .. .. .. .. .. .. .
Member bank reserve deposits. . . . . . . . . . . . .
Federal reserve notes in aetual oireulabion.. .
Federal reserve bank notes in actual oiroulatlon. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .

Dee.16,
1038
$ 97,041

Jan. 15,
1934
$ 82,408
440
617
10,225
60,475
5
77,762
94,443
41,470

Jan.15,
1935
$ 42,983
4,869
None
856
44,885

5

50,ll5
40,088
37,515

4,542
60,475
5
72,025
102,807
41,777

10,439

None

12,825

!Jooa
.None

less than at the middle of December, but $14,,394,,000 greater
than the circulation on the corresponding date in 1933.
Deposits of
Despite the fact that for the past several
Member Banlcs
years daily average deposits of member
banks in December have shown material
declines from the previous month, a sizable increase was
recorded in this figure last month. The combined daily
average of net demand and time deposits of member banks
ill the Eleventh District during December, 1933, amounted
to $680,863,000, as compared with $654,,145,000 in Novem'
bel', and $613,028,000 in December, 1932. The gain over the
preceding month occurred in net demand deposits, as a
slight decrease in time deposits was reported at both reserve
city and country banks.
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
Combined Total

Dee.,
Jan.,
Feb.,
Mar.,
April,
May,
June,
July,
Aug.,
Sept.,
Oet.,
Nov.,
Dec.,

Net demand
deposits
1932 . ..... $420,762
19S5...... 410,655
1938 .. .... 415,200
19S8...... 413,776
1933...... 394,790
1933.... .. 394,336
1933...... 895,983
1933...... 390,783
1933...... 389,177
1933...... 400,597
1938...... 436,027
1933 .. .... 466,198
1933...... 494,176

Reserve City Banks

Time Net demand
deposits doposits
$192,266 $202,913
194,407
201,437
192,412
199,397
188,547
202,276
186,161
193,431
186,590
191,847
186,405
192,396
191,055
196,040
190,931
191,302
187,508
195,145
180,936 210,987
187,947
228,265
180,687
240,971

Country Banks

Time Net demand Time
deposits deposits deposits
$117,465 $217,849
$74,801
119,215
215,218
75,192
ll8,756
215,803
73,656
115,737
211,500
72,810
ll3,723
201,359
72,438
113,101
202,489
73,49~
ll3,390
203,587
73,01
ll3,908
200,743
77,147
112,666
197,876
78,26~
110,146
205,452
77,30
109,264
225,040
77,67~
106,914
237,933
81,03
100,132
253,205
80,56 5

Reports from member banks in selected
cities covering the four· week period en~'
ing January 10 reflected a further sU •
stantial increase in investments, but a sea
sonal recession in loans. Deposits showe
during the period. The investments of these
little change

Condition of
Member Banks
in Selected
Cities

d

MONTHLY BUSINESS REVIEW
banks in United States securities on January 10 totaled
$139,54.1,000 which was $l4.,4,60,000 greater than four weeks
earlier, and $4,7,219,000 above holdings on the corresponding date in 1933. Their investments in other stocks and bonds
declined $1,315,000 during the four-week period and were
$2,882,000 less than a year ago. Loans on securities were
increased $381,000 between December 13 and January 10,
but the total on the latter date was $10,651,000 less than on
the corresponding date last year. "All other" loans (largely
commercial) declined $10,168,000 during the four-week
period and were $14,087,000 below those a year ago. The
net demand deposits of these banks reflected a slight recession of $1,204,,000 between December 13 and January 10,
but this decline was more than offset by a rise of $1,798,000
in time deposits. As compared with a year ago, the combined net demand and time deposits of these banks were
$36,656,000 larger. Their reserves with the Federal Reserve
Bank amounted to $56,573,000 on January 10 which was
$6,946,000 less than on December 13, but $28,708,000
greater than on January 11, 1933. Their borrowings from the
Federal Reserve Bank anlOunted to $190,000 on January
10 as compared with $400,000 four weeks earlier.

Debits to
Individual
Accounts

There was a partially seasonal expansion
of 12.0 per cent in the amount of charges
to depositors' accounts during December
at hanks located in leading cities in the
Eleventh District. Total dehits, which amounted to $594,394,,000, were also 11.5 per cent larger than in the corresponding month a year ago. All except one of the seventeen
reporting cities participated in the increase over November.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)

United Statas securities owned . ......... . ..
All otber stooks, bonds, nnd seourities owned.
Loans on seouritles. . . . . . . . . . . . . . . . . . . . . . .
All othor loans . . . . . . .. .. . . . . . . .. . . . . . . . . .
Total loans . .. .. .. .. .. .. . .. .. .. .. .. .. .. ..
Net demand deposits.. ... .. ........ ......
Time deposits ... . . . . . . . . . . . . . . . . .. . . . . . . .
Re.,erve with Federal Reserve Dank. . . . . .. .
Dills payable nnd rediseounts with Federal
Reservo Bank.. . .. .. . . . . .. .. .. . .. . .. .. .

Jan. 11,
1088
$ 92,322
56,150
00,725
157,014
220,739
221,246
130,821
27,865
Nono

December
1032
$ 4,050
15,422
13,607
2,500
144,501
15,875
55,285
28,581
140,707
4,200
2,063
46,396
23,511
5,026
9,022
11,484
8,708

:j:

+

+

+
+
+

+
+

:j:

+

Savings
Deposits

A moderate hut rather general increase
in the savings deposits of 133 reporting
banks throughout the Eleventh District
occurred in December. At the close of the month these deposits aggregated $135,163,890, which compares with $134,101,982 reported on November 30, and $138,992,117 on
December 31, 1932. The percentage decline from a year ago
amounted to 2.8 per cent, as against 3.2 per cent on November 30.

Deo. 13,
1983
S 125,081
54,502
58,603
153,005
211,788
267,020
120,209
63,519

190

Percentage
change over November
year
1033
+25 .4
S 7,860
+17.4
13,571
21. 7
13,137
29.5
2,870
+23.0
164,407
8.2
16,562
+14.0
54,831
-17.9
20,128
180,300
6.0
+27.7
5,187
+ 20.9
2,340
- 1.9
39,158
+20.3
26,352
+11.1
5,064
-23.2
6,932
+12.2
11,505
+24.2
10, 268

Pereentage
ohange over
month
Abilene ....... ..
-21.0
Austin ......... .
+33.4
Bonumont ..... . .
+20.0
Corsioana .... . . .
7.5
DnUns . ........ .
8.1
EI Pnso . ...... ..
3.7
Fort Worth ..... .
+15.5
Galveston ..... . .
+16.5
Houston . ..... . . .
+15.1
Port Arthur .... .
4.4
Roswell. ... .... .
6.6
San Antonio .... .
+16.2
Shreveport ..... .
7.4
1'c:<Rrko.nn· ... . .
10 .3
Tucson ......... .
+10.0
Waeo .......... .
+11.4
Wiehita Falls ... .
5.3
Total..... $504,304
$532,954
+11 .5
5530,401
+12.0
. ~Inoludes fig~res of two banks In Texnrlrona, Arlronsns loeated in the Eighth
DIstrICt.
'
Deoember
1933
$ 0,214
18,102
16,068
3,084
177,772
17,176
63,33a
28,455
150,010
5,364
2,494
45,510
28,294
5,585
7,624
12,884
10,813

CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In thousands of dollars)
Jan. 10,
1084
S 139,541
53,277
59,074
142,927
202,001
200,710
122,007
50,573

5

400

SAVINGS DEPOSITS
December 31, 1033

Beaumont .................
DnUns ................. ...
EI Pnso . . .................
Fort WorLh ... . .. ... .......
Galveston ........ . ........
Houston ....... .. ..........
Port Arthur ......... : .....
San Antonio ...... . .•......
Shreveport .... . ...........
Waeo .................... .
Wichita Falls ..... . . . .. ....
I\.U others . . ........ .......

Number of
rec,ortin g
anks
8

0"

2
4
4

11"
2
7
3
3
3
82"

Number of
savings
depositors
8,124
72,740
0,872
31.508
16,480
64,382
4,698
10,866
21,220
10..101
5,570
51,485

---

Deoember 31, 1032

Ameunt of
savin,'!s
depOSIts
$ 8,045,032
23,610,640
4,120,784
10,131,384
0,031,070
27,373,973
1,020,578
14,030,130
11,624,301
5,831,655
2,541,607
20,992,827

----

Number of
savings
depositors
8,145
74,488
10,622
33,520
16,840
65,146
4,144
20,129
22,328
10,843
5,717
52,861

November 30, 1083

Amount of
savin~

depOSIts
$ 8,045,803
25,647,714
3,459,020
11,011,142
0,003,040
30,776,114
1,832,784
14,458,541
0,831,527
5,604,750
2,260,526
21,160,666

Poroentage eh.ange
over year 10
savings deposita
0.0
- 7.0
+19.1
- 8.0
+ .3
-11.1
+ 4.8
- 3.0
+18.2
+ 4.0
+12.4
.8

Number of
sa.vings
depositors
8,031
73,209
0,784
31,500
16,491
64,420
4,666
10,745
21,358
10,477
5,541
51,406

-

316,453
183
$135,163,800
324,292
Total. ............
$138,002,117
"Only 8 banks in Dallas, 10 in Houston, and 74 in "I\.II others" reported the number of savings depositors .

-

--310,826

2.8

JANUARY DISCOUNT RATES
El Pnso

Fort Worth

3-7

6-8
5-0
6-8
6-8
8
0-8

o

4-8

4~6

8Bvin~

depOSIts
$ 3,005,502
23,326,005
8,086.464
10,236,507
0,026,855
27,235,191
1,867,166
13,850,748
11,628,690
5,685,440
2,478,737
20,873,683

Peroentage ehange
over month in
savings deposits
1.3
1.3
+ 3.4
- 1.0
+ .1
+ .5
+ 2.0
+ 1.3
0.0
+ 2.0
+ 2.5
+ .6

$134,101,082

:j:

+

.8

Prevailing rates:

Dallas
Rato eharged eustomers on prime commercial paper suoh ns that now eligihle for
rediseount under the Federal Reserve Aot .. .. . ..... . .. ................... . ..
Rate eharged on lonns to other banks seeured by bills reoeivable ....... .. ... ...... .
Rate on loans seeured by prime stook exehange or other eurrent eollateral (not
including loans plaoed 10 other markets through eorrespondent banks):
Demand ... ...... ................................... ... ............ .
Time . ............................ . ................... . ............ .
Rate eharged on commodity paper secured by warehouse receipts, ete .. '" .... ..... .
Uate on eattle loans ................ .. ....... . ............................. . . .

Amount of

Houston

San Antonio

Waco

5-0

1~6

6-7
5-6

6
0

3-0
572

5-10
5-10
5-8
6-8

5-7
5-7
5-7
7-10

6-8
6-8
6-8
8-10

6-8
6-8
5-6
8

MONTHLY BUSINESS REVIEW

6
Acceptance
Market

Acceptances executed by banks in the
Eleventh District and outstanding at the
close of December amounted to $3,058,066, which compares with $3,054,486 a month earlier, and
$1,385,620 on the last day of December, 1932. While a

moderate decrease was reflected during the month in ac·
ceptances based on import and export transactions, it was
somewhat more than offset by a gain in the volume of those
executed against the domestic shipment and storage of
goods.

INDUSTRY
Cottonseed
Products

Further seasonal reductions were evidenced during December in the opera·
tions of Texas cottonseed oil mills, and
the receipts and crushings of seed and the production of
oil and hulls continued in smaller volume than in the
corresponding month last year. With the exception of the
output of linters activities at these mills during the current
season remained on a considerably lower level than in the
period from August 1 through December 31, 1932.
Although operations reflected the usual seasonal
decline during December, the receipts of seed and the pro·
duction of linters at cottonseed oil mills throughout the
United States showed an increase over those in December a
year ago. Also excepting linters activities at these mills
during the five months of the current season remained below
those in the same period of the previous year. Stocks of cot·
tonseed oil on December 31 at both Texas and United
States mills were greater than those a month earlier or a
year ago, while supplies of cake and meal and hulls were
smaller than on either comparative date. Stocks of linters
were larger than a month earlier, but considerably smaller
than a year ago.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States
1 to December 31 Au~ust 1 to December 31
ThIS season Last senson ThIS SCUllOD Last sCUllon

Au~ust

Cottonseed received at mills
(tons} .. . ... . . .. . . ..... . . . .
1,162,123
1,180,250
8,505,010
3,623,704
707,743
861,828
2,425,506
2,586,677
Cottonseed crushed Jtons) ... ..
Cottonseed on han Dec. 31
1,300,442
1,336,301
(tons) . . .... ..... . .. . . ... ..
463,683
502,600
Crude oil produced (pounds) . . . 234,071,057 257,584,067 740,832,880 706,370.046
372,087
300,087
1,005,766
1,163,072
Cake and meal ~rodueed (tons)
Hulls produced tons} ........ .
221,236
252,820
651,477
783,217
Linters produced (running
bales} ..... . . ......... ... ..
127,353
102,005
487,145
400,020
Stocks on hand Dec. 81:
Crude oil (pounds) .. . ... . .... 41,604,021 32,168,011 131,054,831 09,058,468
312,006
367,289
Cake and meal (tona) . .. . .... .
81,328
88,184
235,320
57,525
03,625
124,802
Hulls (tons) . . . .• . . . .. . ......
284,317
45,084
83,540
161,824
Linters (running bales) . . .. . . ..

The consumption of cotton at domestic
textile mills declined during December
to a level far below the average for that
month. There were only 348,393 bales of cotton consumed
during the month, as compared with 475,368 bales in November, and 440,439 bales in December, 1932. Notwithstand·
ing this large decline as compared with the previous year,
consumption of cotton during the current season, August 1
through December 31, remained above that in the corre·
sponding five months of the previous season. Supplies of
raw cotton held by consuming establishments at the close
of 1933 were in larger volume than those on November 30,
1933, or December 31, 1932.
In like manner activity at Texas cotton textile mills de·
clined seasonally during December, and was considerably
short of last year's operations. Declines occurred in both the
consumption of cotton and the production of cloth. Orders
for finished products on hand December 31 were in larger
volume than those a month earlier or a year ago. Stocks of
cotton products held by these mills at the close of December

Textile
Milling

were larger than on November 30 but slightly below the
holdings on the final day of 1932.
COTTON CONSUMED AND ON HAND
(Bales)

Cetton·growlng states:
Cotton consumed ..... .. ....
On hand Dee. 81 inConsuming establishments.
Public storage and com·
presses . ..... . . . . . . ....
United States:
Cotton consumed ....... . .. .
On hand Dec. 31 inConsuming establishments.
Public storage and com·
preaacs .. .. .......... . .

December
1083
282,041

December August 1 to December 31
1032
This sensen Lnst senson
371,318

1,033,086

1,053,882

1,290,500

348,303

440,430

1,237,202

0,047,700

0,877,817

2,415,600

2,842,065

1,641,742

1,530,040

10,318,461

10,840,811

Cotton
Movements

A recession somewhat larger than sea·
sonal was witnessed during December in
the combined exports of cotton from the
ports of Houston and Galveston, and a substantial decline
was evidenced as compared with the corresponding month of
1932. Despite these unfavorable trends, exports during the
current season were in excess of those in the first five months
of the 1932-33 season, reflecting the large shipments made
during the early part of the present cotton year. Receipts of
cotton at Houston and Galveston during December showed
a further seasonal decline, but those at the latter port were
larger than a year ago. Stocks held on the final day of 1933
at Galveston were greater than those on hand a month
earlier or a year ago, while at Houston they were smaller
than the holdings on either comparative date.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Dalcs)
Deeomber
1033
284,001
Receipts ... . ... . ........ . ....
Exports . .... . ..... . .. . . . . •. .
280,857
Stocks, Decomber 31. ... . ... . . ....... .

December
1032
260,005
815,487

. .......

Au~ust

1 to December 81
ThIS senson Last senson
1,557,562
1,460,766
1,000,707
1,034,006
001,852
888,441

COTTON-GALVESTON STOCK STATEMENT
(Bales)

For Great Dritaln . .. . .. . .... . ..•....... . . • ....•... ...
For France . . . .... . . . ... . .. . .. . .•....•... . . . ... .. .. . .
For other fereign ports . ... . . . . . .•. . . .• ... .. . ... . •. ... .
For ecnstwisc ports . .. . .. .. ......... ... ..... . . . . . .. .. .
In eemprCIIScs and depots . ......... . . .... .... . .... . . . ..
Total. •.............. . ........... . .... . .

Dec.81,
1088
8,500
7,000
48,000
5,000
833,352

-001,852

Dec.31,
1032
16,000
7,000
52,500
2,000
810,041

-

888,441

COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Dalcs)
December
1083
Receipts ... .. ... . .. . .... . . . . .
242,838
Experts . .. . ..... ...... .. .•. .
247,010
Slocks, December 31 ... . ...... .... ....

-

-

December Au~ust 1 to December 81
Thl. sensen Lnst SOMon
1082
1,066,040
341,740
1,853,455
1,257,654
301,321
1,433,037
. .. .. ... 1,571,311 1,780,784

-

MONTHLY BUSINESS REVIEW
The foreign exports of cotton from all United States ports
reflected a decline during December only slightly larger than
usually occurs in that month, but shipments were noticeably
below those in December, 1932. Aggregate exports dUl"ing
the past month were 820,099 bales, as compared with
915,304, bales in November, and 1,039,795 bales in December a year ago. As a result of the large declines in exports
during the past two months, shipments during the current
season fell below those in the previous season. German takings of American cotton have declined materially during
recent months, which largely accounts for the downward
trend in exports.

Coastal region. The largest decline was reported in East
Texas. The daily production in New Mexico and North
Louisiana was on only a slightly higher scale than in
November.
OIL PRODUCTION-(Barrels)

Nortb TexM ... .......... ... . 3,072,550
Central West Texas ... ... .... . 4,477,800
East Central Texas .......... . 13,803,400
South Texas .. . .... . ... . .... . 1,323,050
Texas Co.. tal.. .......... .. . . 4,085.650

00,115
144,445
445,271
42,670
150,214

+142,600
+ 128,850
+257,400
+ 35.200
+226,100

+1,450
- 520
-6,262
- 250
+2,229

Tolal Texas ..... , ... 27,612,450
Now Mexico . . . . . . . . . . . . . . . . . 1,303,050
North Louisiana... .. . .. . .. ...
804,450

890,724
42,058
25,050

+700,150
+ 43,800
+ 27,200

-3,353
58
42

Total Dislrict. . . . . .. 29,720,550

058,727

August 1 to Dcoomb 31
This season Last season

Jar

5,625,052
727,716
406,528
371,050
757,378
510,014
1,018,750
288,763
4,180,008
4,151,802

5,751,106
730,304
508,859
371,216
046,008
482,337
038,981
267,363
4,246,048
4,808,032

-3,253

Completions
129
63
338
113
00

72
87
328
61
66

3
3
1
7
2

54
23
9
45
31

7,621
104,903
2,378,745
22,380
77,540

742
5
20

564
4
15

16

162
1
10

2,501,189
004
1,711

Deoember totals, Di.triot •...
November totals, DiBtriot . , .

1034
11.65
11.40
11.05
11.35
11 .35

Gna
wells

North Texas .... . ......... .
Central West Tex ...........
East Central Texas .........
Soutb Tex........ . ....... .
Toxas Co.. tal.. ............

Jan. 15,

10 .00
0.75
0.45
0.75
0.75

Produoera

Total Texas ..... ..•.
New Mexioo .... . ..........
North Louisiana .... . ...... .

Deoember, 1033
High
Low
10.35
10.14
9 .85
10.15
10.15

+
+

--+861,150

DECEMBER DRILLING RESULTS

SPOT COTTON PRICES- (Middling Basis)
(Cente per pound)

Newyork . .........•. . ...•• . .. . ... .. . ...
New Orleans .. ...... . .... .. ..... •.... ....
Dallas .... ................ .. . .. . .. ...... .
Houston ............•.....•.....•........
Galveston .. ... ......•........... ... . .. ..

Increase or decrease over
November, IOB3
Total
Daily Avg.

December, 1033
Total
Daily Ave.

BEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORT8-(Balcs)

Receipts .. ........... .. ........... . ................. .
Exports: United Kingdon ........ ... . . .. . . ........... .
Franco . ... ....... ...... ...... ....... ...... .
Italy ........ . . . ..........•.... . •.....•.....
Germnny ................ ... .......... ..... .
Other Europe ........................ ..• ....
nn . ........... . ......................•. . .
AI other countries . ... ... ...... . .... . ..... . . .
Total foreign ]lorts ...... .. ... .. .......... . ..... .. . .. .
Stocks at all United States porte, December 31. .....•....

7

776
730

583
576

173
141

2,593,894
2,760,849

FailUrcs

4
20
13

Initial
produotion

CRUDE OIL PRICES

While there was a decline from the previous month in the daily average production of crude oil in this district during December, the
month's total yield reflected an increase of 861,150 barrels.
This output, which amounted to 29,720,550 barrels, was
4,073,4,00 barrels in excess of that in December, 1932. The
number of new wells completed rose from 730 in November
to 776 in the subsequent month, but drilling was relatively
less successful as there was a decrease in the initial flush
production from 2,760,849 barrels in the earlier month to
2,593,894 barrels in the latter month.

January 12, January 13,

Petroleum

Daily average yield in Texas during December totaled
890,724, barrels, as compared with 894,077 barrels in the
preceding month. Despite the reduction which was shown,
material gains occUl"red in North Texas and in the Gulf

Texna COMtnl (34 gr. and above) ...................... .
North Texas and North Louisiana (40 gr. and above) ..•..
·Price paid for oil 35 gr. and above.

1934
$1.12
1.03

1033
$ .01"
.77

(Oil statistics compiled by "The Oil Weokly," Houston, Texas)

Building
The valuation of building permits issued
. "
in December a~ fourteen leading cities in
thIS dIstrIct totaled $797,213, whICh is 16.7 per cent larger
than the amount reported in November. As compared with
the. final mont? in 193~ there was a d.ecline of 28.5 per cent, '
whICh was chIefly attrIbutable to a SIzable reduction at one
city where unusual activity was reported a year ago. Total
construction permits issued last month numbered 835 as
against 1,114, in the previous month, and 700 in the s~me
month a year ago.

BUILDING PERMITS
Deeember, 1033
No.

Amarillo .......
Austin ... ... ...
Beaumont ..... .
Corr,us Christi. .
Dal ....... . ...
EI Pnso ........
Fort Worth .....
Galveston . ... ..
HOllston . .......
Port Arthur ....
Snn Antonio .. ..
Bhrev~port .... .
Waco . . .. ... ...
Wicbita Falls ...
Tolnl. ...

Valuation

Deoember, 1032
No.

-- - - - -10
17 S 4,521
36
57
13
238
24
56
85
117
41
80
56
11
4

27,R56
00,661
7,710
100,030
48,498
70,184
74,086
281,722
0,643
32,775
25,551
13,067
1,500

42
50
16
142
24
52
56
02
21
119
56
10
10

Peroentage ohange
valuation over
Valuation
year
$

5,503
48,752
12,845
44,108
50,884
18,080
73,050
521 ,810
245,801
4,831
36.36a
10,276
26,653
5,a04

--- -1707,213 -- - - 700 $1,115,348
835

- 17.8
- 43.0
+605 .8
- 82 .6
+ 82.1
+155.4
5.1
- 85.8
+ 14 .6
+ 09.6
0.0
+148 .6
- 47 .6
- 72.2

-

---

28 .5

Total year

November, 1033
No.

Peroentage ebange
valuation over
Valuation
montb

3,327
14 $
88,828
71
15,675
76
12,788
18
128,610
330
80,785
26
40,160
80
40,388
90
130,800
117
41
8,026
103
90,004
25,083
110
44,912
20
3,710
0

- - -$682,005
-1,114

+ 35 .0
- 69 . 2
+478.4
- 39.7
- 15 . 2
+ 21.0
+ 74.7
+ 83 .4
+115.4
+ 20 . 1
- 67.2
1.7
- 68.0
- 50.6

-

--+ 16 .7

1033

No.

Valuation

1032

No.

Valuation
242 S 287,695

Percentage ebange
valuation nver
period

100 $ 156,005
060
1,345,100
082
278,617
m
164,480
3,003
1,069,774
407
248,666
1,003
2,688,160
1,125
472,070
2,038
3,188,730
554
109,667
1,003,218
1,543
1,248
441,201
250
332,080
293
80,031

1,023
1,003
371
3,147
457
1,402
1,550
2,283
416
2,057
1,368
331
170

5,175,415
298,505
182,716
2,352,222
367,412
1,430,930
1,01 0,023
2,874,040
00.532
1,536,708
458,033
401,280
400,674

-41i.4
-74.0
- 6.7
-10 .0
-16.7
-32.3
+87.0
-53.7
+10 . 0
+21.1
-34 .7
- 3.7
-17.2
-84.0

14,704 $12,468,816

15,820

116,075,085

-20.5

MONTHLY BUSINESS REVIEW

8

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board, January 24, 1984)

Industrial lactivity, as measured by the Federal Reserve
Board's seasonally adjusted index, showed an increase in
December following upon four months of decline. Factory
employment declined somewhat, while employment by pub·
lic agencies showed a considerable increase.
PRODUCTION AND EMPLOYMENT
The Board's index of industrial production, which is
adjusted to allow for seasonal variation, advanced from 73
per cent of the 1923·1925 average in November to 74 per
cent in December. For the fourth quarter of 1933 as a whole
the volume of industrial output was 13 per cent larger than
for the corresponding period of 1932. Activity in the steel
industry, contrary to seasonal tendency, increased consider·
ably in December and there was also an increase in the out·
put of automobiles. Shoe production declined by an amount
smaller than is usual in December. At textile mills, activity
declined further by considerably more than the usual sea·
sonal amount to about the low level of last spring. The num·
ber of employees at factories declined between the middle
of November and the middle of December by somewhat more
than the usual seasonal amount, reflecting chiefly reductions
in working forces at cotton, woolen, and silk mills and at
clothing factories. At automobile factories there was a substantial increase in employment. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation,
increased further in December and in the first half of
January. There was a large increase in contracts awarded for
public works, and private construction also increased. In
the fourth quarter of 1933 as a whole construction contracts
in 37 states totaled $500,000,000 as compared with $300,000,000 in the last quarter of 1932.
DISTRIBUTION
Freight-car loadings, particularly in miscellaneous freight,
declined in December as compared with November by less

than the usual seasonal amount. Dollar value of sales by
department stores showed an increase slightly larger than is
usual for December.
DOLLAR EXCHANGE
The foreign exchange value of the dollar, which had
fluctuated around 64 per cent of parity from the end of
November to January 13, declined to 62 per cent on January
17, and subsequently advanced to a range from 62 to 63
per cent.
PRICES
Wholesale commodity prices, which had shown a slight
decline between the middle of November and the third week
of December, advanced in the following month, reflecting
chiefly increases in the prices of farm products and foods.
Cotton and grains showed marked increases and livestock
prices also advanced somewhat.
BANK CREDIT
At the reserve banks the seasonal return of currency frol11
circulation after the holiday demand amounted to about
$250,000,000 from the high point on December 22 to
January 17. A large part of the funds arising from this inflow of currency to the reserve banks was added to the reserve balances of. member banks, with the consequence th~t
these balances increased by January 17 to $900,000,000 In
excess of legal requirements. The return flow of currencY
from circulation and the reduction of balances held by co)1lmercial banks for the United States government were reflected in an increase of demand deposits at reporting me)1lber banks. Loans of the banks declined between December
13 and January 17, while holdings of United States Government and other securities increased. Short-term money rates
in the open market, which had shown a slight advance in
December, declined in January to the previous level.