The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Monthly Business Review
OF THE
FEDERAL RESERVE BANK
OF DALLAS
•
(Compiled January 15, 1938)
~:ln~e~2~2~'~~~O=.=1=2=================D==a=1l=a=s=,=T=e=x=a=s=,='F==e=b=r=u=a=r=Y=1=,=1=9=3=8======~===T=h=i8=c=o=pY~i8=r~el~ea=B=e(~lf~O=r=PU~b='==J=a=n=.=3=1=
~===================================================================ll~ca~t1=o=n=in=m==or=n=in=g=p=aP:e=r8=-==========
DISTRICT SUMMARY
----~~---------------------------------------- Despite the curtailment in production during the last four
THE SITUATION AT A GLANCE
Eloventh Federnl Resorvo District
Totnl
1937
Dank dobits t . d' 'd
Department s~o'::' ~~lcsu.1 accounts (18 aitics) .. .... . . . . $10,566,430,000
W I " " ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '' '''' '''
T
os .(fivo lines) .... .. .. .. .. ..... .. ..
~!rrctl an contraots awarded . . . . ... ...
Value all otb IB constru~tion. .. .. .. .... .. ... .. ..
Value building or co~s truc tlon . . . . . . . . . . .. .. .. . . . . . ..
Taltal cash fnr.tf~~I~eiBSued (14 cities) . . . .. . . . .....
ncolOe fro
I f ' . . . . . . . .. . . .. .. .. .. .. . . . . . . .
Income from sale a farm crops
.......... .. .....
GOvcrnmon~ ~ e livestock and Iivestoek products..
COlOont produ t' lie t ~ aymontB to farmors .... ..... .
Cemont Shipments
. Clanfrnt 1'0XII8 mills. (barrols) .. ..... .... .
0m Texas DUlls (barreIB) .. . . . .. .. .
CommerCia f '1
Coc mmercial fan'lllures I~ub~bcr)
. ........ .. .. .. .. .. ..
ures (bnrrols
In Ihtles)
rud e 011' production
. . . ... . . . .. .. ..... .. ..
---
ur
$ . ilii.·66ii,000
46,638,000
S
S 106,022,000
$
$
$
$
$
1
)
... ... ... ... .. .. " .. .
$
68,816,031
969,802,000
641,975,000
361,260,000
66,577,000
6,918,000
6,705,000
182
2,117,000
579,080,550
Porcentag~
ohango
from 1936
+16 .3
+ 8. 6
+ 8.3
+21.8
+16 .9
+24.1
- 1.9
+16.8
+13 .6
+16 . 7
+39.6
+18.6
+14 . 6
-16 .6
-14 . 6
+23.0
ni After showing a further upward trend during the first
D~e ~onths of 1937, business and industry in the Eleventh
lnlsthlCt declined in the fourth quarter, but the recession was
ou~c smaller than in the United States as a whole. Throughest h?st of the year, business at both wholesale and retail
lev~l hhhme?ts in this district was at a substantially higher
the 1 t an lr: 1936, and aggregate sales for the year were
tis ~~gest smce 1929. Department store sales, which had
9 en 9 per cent from 1935 to 1936, increased further by
er
teg c nt in 1937. Business of independent retail firms, as
hi rte by the Department of Commerce, was also at a
btg er level than in the preceding year. In the wholesale
in fich l.of distribution, combined sales of reporting firms
WithVe mes of trade increased 8 per cent over those in 1936,
plo hardware and groceries showing the largest gains. EmPt ce
Y1~nt and payrolls were noticeably higher than in the
ax: mg year. The number of business failures and the
in unt of indebtedness involved were the smallest reported
e twenty years for which records are available.
hd
ili
on~.~~s~ruction contracts awarded in this district were about
onl
t
larger in 1937 than in the preceding year, but
t
Util't 936 re.suIted chlefly from the larger awards for pubhc
ove~ bout 60 per c~nt of the 1929 volume. The increa~
ing 1 y, p~bhc works, and residential building. After showdent~ 10hceable expansion in the preceding two years, resi193~a b construction increased sharply in the forepart of
decl" ~lt t~ward the end of the year there was a sharp
new me n thiS type of building. In the latter part of the year
a lev~t ers ,for lumber fell off and production declined to
and h' conSiderably under that of a year earlier. Production
19 s Ipments of cement from Texas mills during 1937 were
193Ket cent and 15 per cent, respectively, greater than in
d
months of the year, the output of petroleum in 1937 was the
largest on record, exceeding that in 1936 by 23 per cent.
This increase was accompanied by an expansion in the
demand for petroleum, resulting in generally stable prices
for crude oil throughout the year. Although copper mining
in the western portion of the district was very active in the
early part of the year, production has been reduced in
recent months, following the decrease in demand and the
decline in copper prices.
The volume of agricultural production was considerably
in excess of that in 1936, and for most crops it was about
equal to or greater than the 1928·1932 average production.
Physical conditions in the livestock industry as a whole
have been favorable, resulting in heavy marketings of grassfat sheep and cattle. Shipments of calves and lambs to market and to other states were the largest on record and mar·
ketings of cattle were the heaviest in ten years. In contrast
with the favorable physical factors, prices of agricultural
products, after reaching a peak in the spring, followed a
downward course in subsequent months with severe declines·
occurring in the last four months. According to the Depart·
ment of Agriculture, prices of agricultural products in
December were 21 per cent lower than a year earlier. The
full extent of the drop in prices, however, was not reflected
in cash farm income, as prices of livestock and some agricultural products averaged higher than in the preceding year
during the heavy marketing season. For a few crops, the
lower unit prices were offset in part by larger production.
Estimated cash farm income, which includes receipts from
the sale ' of livestock and livestock products as well as Government benefit payments, in the five states wholly or partially attached to this district rose to a total of $970,000,000. This amount was 16 per cent greater than in 1936,
nearly double that in 1932, and the largest since 1929.
Gross deposits of member banks declined substantially in
the first half of the year due principally to the decrease in
Government deposits and the withdrawal by country banks
of a portion of their balances with reserve city banks. After
the middle of the year deposits showed a noticeable expansion and in December averaged about $20,000,000 larger
than in that month of 1936. Reserve balances of member
banks increased further in 1937 with the December average
about $25,000,000 higher than a year earlier. Excess
reserves were l'educed considerably by the increases in
reserve requirements effective on March 1 and May 1, hut
the increase of reserves in the latter part of the year raised
the total .t~ about 31 per cent of required reserVeS. The loans
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
until the end of the year, while investments showed an ir·
regular downward trend throughout the year.
of weekly reporting member banks, after declining seasonally in January and February, followed an upward trend
BUSINESS
Distribution of merchandise in five lines
of wholesale trade in this district showed
more than the usual recession during
December, but, with the exception of farm implements and
hardware, sales in individual lines were about equal to or
greater than those in December, 1936_
Demand for dry goods again reflected a smaller than seasonal recession from the preceding month, and sales were
about the same as a year ago_ Business of grocery and hardware firms declined more than usually from November to
December. Hardware sales were 3.3 per cent below those in
December last year, and the increase of 6 per cent in grocery
sales was the smallest year-to-year comparison recorded during 1937_ Sales of farm implements showed a further decline in December, and were 61.5 per cent less than a year
ago. Distribution of drugs continued to expand and the December volume was 15.7 per cent larger than in December,
1936.
Although wholesale trade in this district declined more
than seasonally during the final quarter of 1937, total sales
for the year were 8.3 per cent greater than in 1936, and the
largest for any year since 1929. Increases over last year in
the individual lines of trade ranged from 0.8 per cent for
farm implements to 14.1 per cent for hardware. Collections
Wholesale
Trade
CONDITION OF WHOLESALE TRADE DURING DECEMBER, 1987
Percentage of inore..e or doorellSe inNet Salos
Net Salos
Stooks
Ratio Deo.
Deo., 1937
Jan. 1 to Dco. 31
Dco. 31, 1937
oollootions
compared with
compared with
compared with
to aocollnts
Dec., Nov.,
sarno period
Dec. 31, Nov. 30,
outstanding
1930
1937
I.. t yenr
1936 1037
Nov. 30
Groceries ... .... .. + 6.0 -12.9
+13.7
-11.1 -12 .0
86.3
Drygoods ........ + .3 -29.6
+ 1.1
-10.0 -11.0
42. 0
Farm implcmonts .. -61.5 - 5.9
+.8
+12.2 - 3.8
11.0
Hardware .. ...... - 3.3 -21. 1
+14.1
+ 1.6 - 10 .2
51.2
Drugs· ......... .. +15.7 +11.3
+ 8.1
+ 7.8 - 4.6
69.7
·Drug data compiled by tho Unitod States Department of Commerce. Colleotion ratio
represenh modian percentage.
on accounts and notes were generally good throughout the
year. Inventories held by grocery and dry goods firms on
December 31, 1937, were considerably smaller than a year
earlier, but in the other lines of trade they were larger.
Retail
Trade
Sales of merchandise at department
stores in principal cities in the Eleventh
District showed slightly less than the
usual increase in December, but continued in larger volume
than a year ago. The increase in the dollar value of sal~s
from November to December was 57.6 per cent and the gaIn
over December last year was 4,.8 per cent. Preliminary
reports indicate that business in the first half of January
was substantially better than in the same period of 1937,
The downward trend in this bank's seasonally adjusted
index of department store sales, which has been in evidence
since last August, was extended in December. The figure
for the latest month was 106.4, per cent of the- 1923-1925
average, as compared with 108.5 per cent in November, and
103.4 per cent in December, 1936. For the year 1937, sales
were 107.2 per cent of the 1923-1925 average, which compares with 99.7 per cent in 1936, 65.1 per cent in 1932, and
1l0.2 per cent in 1929.
Inventories were reduced by more than the usual amount
in November and Decembe-r, and at the end of the latter
month were only slightly larger than a year ago. The per·
centage increase in the average end-of-month stocks during
1937 was larger than the increase in sales, and as a conse'
quence the rate of stock turnover declined from 3.76 in 1936
to 3.60 in 1937. With the exception of 1936, however, the
latter figure is the largest for any year on record,
The rate of collections on regular accounts during 1937
was about the same as in 1936, but it was slightly lower on
installment accounts.
BUSINESS OF DEPARTMENT STORES
Dallas
Fort Worth
Total sales (peroentage):
Docember, 1037, compared with Deoember, 1936 ....... ... .......... .. .............. : ... .
+ 4.6
+ 3.5
Dooember, 1037, compared with Novomber, 1937 ........................... , .......... .
+56.1
+82.2
January 1 to December 31, 1937, comparod with 8ame period I.. t year : . ...... .•. .. .. .. ...
+ 7.1
5.1
Crodit sales (percentago):
December, 1937, oompared with December, 1936 .................. . ......... . .... . . . . .. . .
+ 6.9
- 2. 9
December, 1037, oompared with November, 1937 ................................... ... .
+45.4
+78.0
January 1 to December 31, 1037, compared with 80me poriod l.. t year ....•. .. ..• •. . . .. . .. .
+10.8
+ 4.0
Stooks on hand at end of month (~rcentage):
December, 1937, compared With December, 1036 ...................................... .
+ 4.2
+ 3.3
-21.1
Deoember, 1937, comparod with November, 1937 ................... . .................. .
-20.7
Stoek turnover (rate):
.56
Rate of stook turnover in December, 19S6 ............. .. ............................... .
.50
.54
Ratc of stook turnover in December, 1937 .................. ... ................. ........ .
.60
4.15
3.51
Rate of stook turnover January 1 to Decomber 31, 1936 ....... ...... .. ................. .
Ratc ofstock turnover January 1 to Docember 31, 1937 .......................... . ..... .
3.02
3.64
Ratio of December collections to open accounts reoeivable and outstanding December I, 1037 .. .
43 .3
36.3
Ratio of Dec. oolleotions to installment accounts receivable and outstanding Dec. I, 1037
18.8
11 .0
Indexes of department store salos:
120.3
119 .7
Unodjusted-November, 1937
'" .... . .. ... .... ............................. ..... .. .
192.9
214 .4
100 .6
99.8
120 .6
121.1
Indexos of department store stooks:
77.3
Una<!iustcd-November, 1937
....... .... ... ............. . .. ........... ..... ....... .
75 .0
60 .5
50 .4
Unadjusted-December, 1037 ........................................................ .
70 .9
66.4
68.8
72.4
t~i~:~=~~~::~'
1~1:S~[~::Etf8:r::::::: : : :: ::::::::::: :: :: ::::::: :::: :::::::: :::: : ::::::: :
l8:1. .::::::::: :: :.:: :: :::::: :: :::::: ::: ': :: ::: :: ::: :: ::: :: ::: ::
-
Houston
+ 6.7
+30.4
+13.0
San Antonio
+ 5.7
+52.5
+ 8.8
Otbcrs
+ 4.1
+66.4
+ 9.3
Total Distriol
+ 4.8
+57.6
+ 8.5
+ 8.9
+31.5
+16.5
+10.7
+50.0
+11.2
+ 9.0
+60.7
+11.0
+ 0.6
+ 53.7
+10.9
+ 4.6
-25.4
- 6.7
-23.3
- 2.0
-20. 7
+1.1
-23.8
.48
.51
3 .65
3 .58
42 .0
.50
.55
3 .08
3.79
44.8
12.0
.48
.48
3.10
2.07
42.7
19.1
.63
.53
3.76
3.60
42 .4
16.2
130 .2
161.9
111.3
08.7
102.1
154.8
88.8
90 .9
121.5
184.0
108.5
106 .4
48.6
36.2
42 .3
38.9
01.8
46.6
55.7
52.4
74.8
57.1
66 .8
05.~
AGRICUL TURE
Moisture supplies in the major portion
of the Eleventh District are now about
normal or above, as conditions were improved by widespread rains during the past thirty days.
Crop Con·
ditions
Rainfall was light, however, in northwest Texas and in por·
tions of New Mexico, where there is a moisture deficiencY'
Field operations in many sections have been delayed by wet
soil, and dry weather is needed in these areas for the colli'
s
MONTHLY BUSINESS REVIEW
pletion of land preparation.
The Department of Agriculture reported that t~e a~reage
seeded to winter wheat in Texas and New MeXICO In the
fall of 1937 was the same as in the fall of 1936. As compared with the 1927-1931 average, the area sown was about
the same in New Mexico and 35 per cent higher in Texas.
In a considerable area of the main wheat growing section
of northwest Texas, the crop has made poor to only fair
~rowth due to the deficiency in moisture, but in other sechons the condition is mostly good.
Farm stocks of wheat in this district on January I, 1938,
as reported by the Department of Agriculture, were nearly
four times larger than on the same date in 1937, and about
the same as the 1928-1932 average. Stocks of corn and oats
Were also substantially larger than a year ago, hut they were
considerably below the average.
Crop Production Agricultural production in this district
Prices, and Farrr: was in large volume during the past
Income in 1937 year, and the harvest of virtually all
crops was considerably greater than in
1.936, as generally favorable growing and harvesting condihons brought about larger per acre yields. The production
of Cotton, 'wheat, oats, and some of the less important crops
w~s further augmented by an increase in the area harvested.
WIth the exception of feed and some minor crops, 1937 production was also greater than the 1928-32 average harvest,
t~e increases in individual crops being accounted for prinCIpally by the larger acreage harvested, as per acre yields
of most crops, other than cotton, were smaller than the fiveyear average.
After substantial increases during the last half of 1936
and the early part of 1937, prices of farm crops followed
a downward course during the remainder of the year. The
effect of this recession on the average price received for all
farm products was largely counterbalanced during the summer months by continued increases in the prices of livestock
and livestock products, which rose to the highest levels in
recent years. In subsequent months, however, livestock
prices suffered noticeable declines along with those of cropS",
and according to the Department of Agriculture the average
price obtained for all farm commodities declined in December to a level 21 per cent below that of ru year ago. Pronounced recessions occurred in the prices of hogs, cattle,
cotton, wool, wheat, corn and other feed crops.
Despite the sharp declines in the prices of agricultural
commodities during 1937, cash farm income from the sale
of crops and livestock was substantially above that in the
preceding year. This gain was due largely to the increased
production and marketings of crops and livestock, and in
some measure to the fact that prices of some commodities,
notably wheat and livestock and livestock products, averaged higher during the heavy marketing season than in the
corresponding period of 1936. Estimated cash farm income
from the sale of crops in the five states attached to this district aggregated $542,000,000 during 1937, as against $478,000000 in the preceding year. Nearly three-fourths of the
tota'l income from this source was obtained from the sale of
wheat cotton, and cottonseed. Receipts from marketings of
livest~ck and livestock products rose to the highest level
in more than ten years, the total of $361,000,000 exceeding that in 1936 by 16 pel' cent. Government benefit payments to farmers increased from $48,000,000 in 1936 to
$67,000,000 in 1937. The combined receipts from all
sources totaled $970,000,000 during the year, which is 16
per cent greater than in 1936, about twice as great as the
1932 low, and larger than in any year since 1929, when
farm income aggregated $1,174,000,000.
RECEIPTS FROM THE SALE OF PRINCIPAL FARM PRODUCTS
(In thousands of dollars)
Raceipts from:
Livestock and liveFarm
Total
crops
stock products
recoipts
Nov.
Stato
1937
Arizona ..... " .. .. . .. .. . $ 2,181
Louisiana
. . . . . . . . . . . . 22,615
Now Mexico.............
1,998
Oklahoma..... ........ ..
7,141
Tcxas .................. 44,718
Nov.
Nov.
1936
$ 2,572
22,004
2,506
4,864
28,805
1987
$ 4,767
1,861
8,970
6,891
15,022
Nov.
Totallivo statos
$78,603
$60,811
$37,511
SOURCE: United States Department of Agriculture.
1036
Nov.
Nov.
1,816
6,887
7,041
13,465
1037
$ 6,808
24,476
10,068
14,032
59,740
1036
S 6,837
23,820
9,a03
11,005
42,330
$33,474
$110,114
$94,285
S 4,265
-----------------------------------------------------PRODUCTION OF SELECTED CROPS AND CASH FARM INCOME IN TEXAS AND THE ELEVENTH DISTRIC1'
Production (OOO's omitted)
Cash Farm Income (OOO's omitted)
Eleventh Districtt
Texas
'roxns
Elovonth Distriotf
Avorago
Avoragc
1037
1080
1036
Unit
1937
1936
1928-32
1937
1986
1928-32
1937
$ 5,225
$ 8,215
$ 7,365
Corn (all)
B
72048
68025
81922
131,128
104,106
156,522
$ 5,950
Wheat (ali)" .. · ....... ... .. ..... .. ......
u.
41' 90
18'927
41:410
111,326
48,574
101,267
33,700
11,750
82,875
33,450
Oats
...... ....... ... .... . .... " " Bu.
,6
22' 552
30 032
60008
44 602
65,018
2,250
8,400
3,650
5,847
nice" . .. .. .. .. .. .. .. . .. . .. .. .. .. .... . ... Bu.
30,432
10'608
0'020
33 '512
31:684
26,882
7,400
21,300
7,400
19,400
Grai~ h........ · .......... .. ......... Bu.
~~'~~~
31'711
55:091
71:758
40,754
74,718
3,800
3,500
4,355
4,170
Tallle ha g urns (all) .. .. . .. .. .. . .. .. .. .. Bu.
, 1
'815
638
2,581
2,423
2,366
1,560
6,710
5,250
1,850
Broo
Y (aU) ........ .. .. .. .. .. .. .. .. .
Toas
63
5 200
1420
34700
20 100
26 680
a05
2,325
675
2,335
l'ean:°U:)~" .. .. ..... ....... .. ........ . Tons
1~'~~~
09:120
87:224
115:785
116:790
. 110:104
1,200
1,350
1,460
1,610
ColVJ>eas
nuts) .. .. .. .. .. .. . ....... .. . LOO.
1'157
1,122
782
1,753
1,463
1,216
285
325
435
44.5
Cotton (lint .. .. .. · .............. .. • .... · Bu.
5'230
2,033
4,580
7,572
4,286
6,652
184,000
256,125
178,515
260,290
Cottonsoed ) ...... . " ..• . ..... ..•. .... Bales
2'320
1,306
2,041
3,370
1,007
2,062
31,000
47,725
44,770
28,420
Potatoes (I~i~hi' .......... ........ .... .. . fioas
3'456
2,860
3,602
8,700
7,624
0,202
2,850
5,700
6,050
2,075
SWeet potat
. .. ...•. . . . .. . . .. .. . •.. . . .
u.
a'744
3,640
4,734
11,364
11.962
11,566
900
4,075
3,115
1,625
Pecans
oes ................ "........ Bu.
,
10 400
24 360
50 209
16,500
42,554
1,775
2,705
880
1,460
FrUit-.'.' ::: : . ................... " . .. . .. Lbs.
3l'~~~
1:614
(846
5:620
3,252
4,277
1,291
3,239
2,317
740
'sor
~~~:
~:: i~~~~~·I~~~·!t i~~~~~'cir;;p's:::::::::~:u:': ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: nH~~
G tal farm income from sale of livestock and Iivestoek products .. . ...... ........ . .. ............. . .. ........... ....................
38,226
o
vernment benefit payments to farmers ... . . . ............. ...... ..... .. . . .. .. .. . . . . . .. . . . . . .. . .. .. . . .. .. .. .. .. . .. .. .. .. . . . ... _ _
247,630
278,450
155,700
27,205
450,284
541,075
361,250
66,577
398,484
477,000
812,350
47,698
Grand total
.
.. ............... . .... . .. .... ... .'.. .. .. .. ...... .. .... . $544,176
~46~,35? $969,802.. 5837,648
•
farm mcome. .. .. . . . . . . . . . . .. .. .. .. .. . . . . .. . . . . . . . . . . . . .. . . . .
t' II attaohed to the Eleventh Dlstrlot, I. e., Texas, LoUISiana, Oklnh
Apples, poaches, and pears. tEleventh District figures roprcsont the comblOed totals for the five states wholly or par In y
OIna. Now Merioo, nnd Arizona.
_SOURCE: United States Department of Agriculture.
Heavy rains in the past thirty days improved the outlook for spring grazing in
areas of the Eleventh District, except the northwest Pan-
Livestock
all
handle and portions of New Mexico. Although range feed
is good in New Mexico, soil moisture is being depleted. In
the Texas Panhandle small grains are suffering from the
4
MONTHLY BUSINESS REVIEW
lack of moisture, and the removal of cattle from the grain
pastures will be necessary unles's moisture conditions are
improved in the near future.
Cattle and sheep generally are in good flesh and losses
have been light thus far. Mild temperatures and good pasturage in most areas have resulted in supplemental feeding
being held to a minimum. With stock ewes in strong condition, prospects are favorable for a large lamb crop this
year, but the supply of yearling lambs for the spring market
will be limited, as holdings of lambs were reduced by the
heavy marketings in 1937. The number of cattle on feed in
Texas on January 1, 1938, was 30 per cent higher than a
year ago, and the number of sheep and lambs was 76 per
cent larger.
Coincident with a weak, irregular market,
receipts of cattle, calves, and sheep at
Fort Worth declined considerably more
than seasonally in December, and the marketings of hogs
reflected a recession contrary to the usual trend at this season. As compared with December, 1936, receipts of sheep
were 42 per cent greater, but other classes of livestock
showed declines ranging from 2.4 per cent in the case of
cattle to 54.2 per cent for hogs.
Movements
and Prices
After declining to new low levels for the season during
the first half of December, livestock prices follo wed an uneven course through the first week of January. In the subsequent week, however, trade in the cattle division was more
active and the market strengthened somewhat, with practically all classes registering moderate price gains. On the
other hand, the lamb market remained weak and prices were
lower_ Hog prices fluctuated within narrow limits throughout the first half of January, ranging from $7.60 to $8.0 0
per hundredweight for choice stock.
FORT WORTH '1IVESTOCK RECEIPTS
(Number)
December December Chauge over November Changeover
month
year
1937
1936
1937
_24,916
60,369
- 1,465
83,820
58,904
... .. ... . .. .. ..
Cattle
-28,702
45,945
-13,699
60,948
32,246
Calves ... ...... ..... .. . .
_ 1,551
-23,647
21,541
19,990
43,637
_17,889
44,308
18,643
:ho:P .. : ::::::::: ::: :: :
26,419
7,776
+
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars por hundredweight)
December December
1936
1937
S 9.00
Beef steers
. ... . ....... .. .... .. ....... ... .. .. . $8. 25
7.10
7.36
Stoeker steers ....... . .... ... ........ ... , ...... . .
8.75
11.00
Heifers and yearlings ... . ..... . . .. , ....... . .. .... .
5.50
6.00
Butcher cows . ..... . .. ... .... . .. .. ........ ...... .
7.00
8.00
Calves ..... .. .. .. .. .. ... .. .. ... .... . ........... .
8.10
9.96
8.25
8.U
r=bs ..::::::::::: : ~:::::::::::::: : :: : : : :: : ::::
November
1937
$10.00
7.25
9.00
6.26
8.00
9.10
9.00
FINANCE
Earning assets of the Federal Reserve
Bank of Dallas on January 15, at $100,856,000, were $4,,434,000 higher than on
the same date in 1937, due to the larger
holdings of United States Government securities resulting
principally from this bank's participation in the System's
open market purchases in April and November. Discounts
for member banks increased somewhat in the spring and
summer, reaching a peak at about $2,000,000 late in August, but liquidation of these loans in subsequent months. reduced total borrowings of member banks to $132,000 on
January 15, 1938. Outstanding industrial advances declined
throughout the year and the total at mid-J anuary was
$369,000 lower than a year ago.
Operations of
the Federal Reserve Bank
Reserves of member banks in this district averaged $190,800,000 in the first half of January, which was about the
same as in December, and $25,000,000 higher than in the
same period last year. The trend of these reserves has been
upward since last August and, as required reserves have
shown little change, excess reserves have increased. During
the first half of January excess reserves averaged $4.8,000,000 as compared with $36,000,000 in August.
The return flow of Federal Reserve notes since the Christmas holiday had reduced the circulation of these notes approximately $6,000,000 by January 15. On that date, total
circulation of $83,011,000 was $5,731,000 lower than a year
CONDITION OF THE FEDERAL RESERVE BANK
(In thousanda of dollars)
Jan. 15,
Jan.15,
1037
1938
$191,604
Total cash reserves . ........ .. ..... , ..... , ....... . $197,734
None
132
Discounts for member banks .................... .
1,310
941
Industrial advances .. . . ...... .. .... .. .. ........ .
87
16
Bills bought in the open market .... .. ... ....... .. .
95,019
99,767
United States Government securities . ... .. . . . . ... .
None
6
All other investments .. .. .... . ... .. . .. . .. ... . ... ..
96,422
100,856
Total earning assets .. .. . . ........ ...... ... . ..... .
173,906
191,456
Member bank reserve deposits ...... .. ............ .
88,742
83,011
Federal Reserve notes in actual circulation ......... .
26g
489
Commitments to make industrial advances. , .• , . •...
Deo.16,
1937
$200,632
287
970
80
99,731
Nono
101,068
189.606
88,191
269
ago. This decrease resulted from an increase in the amount
of Treasury currency in circulation.
Deposits and total loans and investmen.ts
of weekly reporting member banks 10
this district, which had shown an almost
uninterrupted expansion from the middle
of 1935 to the end of 1936, declined considerably in the fil'st half of 1937, and then increased in the
subsequent six months. The decline in ' deposits during the
first half 0.£ the year reflected chiefly the withdrawals of
United States Government deposits and of bankers' ba~
ances. Country banks usually withdraw a portion of their
balances with other banks at this season to meet the local
demand for funds, and in 1937 this movement coincided with
the transfer of funds to the Federal Reserve Bank to meet
the increases in reserve requirements effective on March 1
and May 1. In the last half of the year, United States Go"ernment deposits and bankers' balances increased, large~y
accounting for the expansion in total deposits during thiS
period. At the close of the year, however, aggregate deposits were about $27,000,000 lower than at the end 0 f
1936.
Condition of
Member Banks
in Leading
Cities
The loans of these banks, after declining seasonally in
January and February, remained relatively steady until the
middle of June, and then showed an upward trend durinS
the remainder of the year. This increase in loans was chiefly
in agricultural, industrial, and commercial loans in response to the demand for credit to finance the movement
and storage of commodities and the expansion in busin~s
activity, but other loans also increased somewhat. COI~
cident with the weakness of bond prices and the decline In
deposits during the early months of the year, these banks
made substantial reductions in their investment holdings.
Following an increase at the time of the Treasury financing
in June, investments showed little change in July and August, but were again reduced in the last four months of the
MONTHLY BUSINESS REVIEW
year, largely offsetting the expansion in loans during that
period.
In the first two weeks of January, 1938, loans declined
~1l,000,000 and investments $2,000,000. Total loans and
Investments on January 12 were about $20,000,000 lower
than a year earlier, as the increase of $16,000,000 in loans
~as more than counterbalanced by a reduction of $36,000,00 in investments.
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
Jan. 12,
Jan.13,
Dee.8,
1937
1937
1938
ad'
t
ts
Tetalleans
$516,634
5508,854
Total loans. n lOVes men . . ............ ... . .. .. . $496,169
252,797
241.805
226.341
gemmcroi~l: 'i~d~~i~i~i: n~d' ~g~i~~li~~.I· io.~~ : : : : : 154,228
160.324
3,202
2,663
11:"n market papor . . ... . .. . .............. . ... ..
4,177
2,905
3,130
o ~ns to brokers and dealers in securities . . . . . . .
14,668
fr loans for purchasing or carrying seourities . .. .
14.906
"
20,841
20,438
23,187
10 a estate loans .. ..... . . . . ... . ............... .
1,190
162
427
AJlan:hlo banks
.. ......... . ... . . ..... . . .... .
46,503
48.395
United S Pr loans .. . .................. . . ......... .
"
174,610
198,390
178,898
Obli . ta!os Government direot obligations ... . . .
Otb gntIOIIS .f~lIy guaranteed by United States Gov't .
29,440
39,443
27,314
62,460
49,845
Res: r scour.ltlOs ... ... . . ... . . .. ... . . .... . ........ .
50,314
111,703
Bal rves With the Federal Reserve Bank .. . . .. .. .. . .
109,902
117.320
170,146
172,259
163,639
De~ne~ lith ?omestic banks ... ... ............ .
392,809
401,603
396,672
Timea:; el'08lts- adjustedt ............ . ........ .
127,241
128,231
121,139
United 'milts . .. . ... ... .. ... : ......... . . .. .. .. .
21,820
38,408
16,020
lnte b k!os Government depOSits .... . . .. . ...•. .
Ber : a~ depOSits
. . . . .... . .. .... . . . .. . .. . .. . .
188,819
201,720
190,459
OWings from the Fedoral Reservo Bank ... . ... .
None
None
130
"Cemparable figures not available.
clilJb tfnoludes all demand deposits oth~r than interbank and United States Govornment, less
~ms reported as on hand or in process of oolleolion.
n!
The daily average gross deposits of member banks established a new high record
in December at a level about $20,000,000
ab?ve that in the corresponding month of 1936, the increase
beIng. about equally divided between gross demand deposits
nd hme deposits. During the first five months of 1937 gross
emand deposits decreased about $74,000,000, chiefly at
fheserve city banks, but they showed an upward trend during
t e remainder of the year. At the clpse of the year, these
~poSits at reserve city banks averaged $24.,000,000 lower
00an a year earlier, while those at country banks were $34,
0,000 higher.
Deposits of
Member Banks
d
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Average of daily figures-in thousands of dollars)
Combined Total
Reservo City Banks
Country Banks
Gross
Gross
demand
Time
demand
deposits deposits deposits
193~ - December ..... .. $1,108,410 $200,898 $632,243
- ~anuary .. . ..... 1.094,826 199,824
021,186
Mebruary .. . . ... 1,079,858 IP9,798
007,432
aroh ... . .. .. . . 1,051,972
199,134
587,596
~pril
.... . ... 1,043,756
199,683
578,110
ray ........ ... 1,035,133
200,293
509,613
193
. . ...... . ~,~~g~g
Au~~s't""" ""
J~re
Soo pt.mbor··
_
: ::::
ctober ..... .. ..
November ... . ..
Dccember . .... ..
1'000'580
1:089:891
1,110,345
1,106,106
1,117,735
~~agg
203,704
208,581
210,451
211,488
211,810
m:m
586,477
601,677
613,865
005,120
607,769
Gross
Time
demand
Time
deposits deposits deposits
$110,280 1476,167
$90,618
109,726
473,640
90,098
109,355
472,426
90,443
108,501
464,376
90,634
108,562
465,646
91,121
109,344
465,520
90,949
m:~~g
i~:~~~
~~:m
111,312
114,828
116,181
117,133
116,993
474,103
488,214
490,480
500,986
509,966
92,392
93,753
94,270
94,355
94,817
1933, as a consequence of the recovery in business and
industry, continued throughout 1937. During the first three
quarters of the year the increase over 1936 averaged 19
per cent, but in the subsequent three months, when there
was a moderate slowing down in business activity, the rate
of increase was somewhat smaller. Charges to depositors'
accounts for the year were 15,3 per cent greater than in
1936, almost double those in 1933, but 10 per cent below
the high level in 1929.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
Pereonlnge ohange from
Abilono . . ...
Austin . . . . ..
Beaumont .. .
Corsicana . . .
Dallas . .. . ..
EI Paso .... .
Fort Worth
Galveston . ..
Houston
Port Arthur.
Roswell. ....
San Antonio.
Shrevoport. .
Texarkana""
Tucson
ir,ler .. .. : : :
noo .. .. .. .
Wiohita Falls
Deoomber
1937
$ 10,791
34,063
26,780
3,798
282,612
31,999
105,568
33,696
247,016
10,307
4,329
73,874
53,671
8,422
12,685
15,352
16,401
18,838
Docember
1936
+16 .0
11.0
+ 4.5
- 5.7
+ .2
+ 8.7
+10 .0
+ 3.6
+ 6.0
13.4
+ 3.4
- 1.8
+ 2.0
-10 .1
.9
- 4.3
- 4.2
+27 .1
-
Novomber
1937
+ .4
+21.6
+ 9.9
+14.7
+19.4
+ 7.1
+24.0
+ 2. 3
+16.3
+10 .8
+ 1.4
14.7
+18 .5
+14.6
+ 4.9
+18.6
+11.3
+21.8
Total
1937
109,1 82
358,370
307,485
43,954
2,944,628
335,721
1,096,269
356,088
2,667,184
112,445
43,426
835,402
571,164
98,569
143,144
175,385
177,311
190,703
Percentage
Total
ohange from
1936
1936
$ 91,833
+18. 9
293,384
+22.2
261,983
17 .4
38,408
+14 .4
2,671,096
+10.2
294,228
+ 14 .1
914,355
+1 9. 9
312,489
+ 14 .0
2,222,896
+20.0
92,012
+22.2
35,821
+21.2
757,187
+10.3
488,859
+ 16 .8
84.743
+16 .3
120,553
+18.7
162,582
+ 7.9
164,441
+ 7.8
160,743
+18. 6
110,566,430 $9,167,513
Total. .. $991,102
+ 3.8
+16.6
+15.3
"Inoludes the figures of two banks in Texarkana, Arkansos, looated in the Eighth Dislriot.
The volume of outstanding acceptances
executed by banks in this district totaled
$2,509,632 on December 31, which represents a non-seasonal decline of 13.6 per cent from that
of a month earlier, but an increase of 14,.0 per cent over
the amount outstanding on the corresponding date of 1936.
Acceptances based on both import and export transactions
and the domestic shipment and storage of goods averaged
considerably higher during 1937 than in the preceding year.
Due in part to the crediting of year-end
Savings
interest payments, savings deposits at
Deposits
U5 banks in this district increased further in December, and at the close of 1937 were 2,5 per cent
greater than on December 31, 1936. The number of savings depositors at these banks increased continuously during the first eleven months of 1937, and while a small decline was evidenced in December, ·t he total of 366,955 on
December 31 was 6,2 per cent greater than a year ago.
Acceptance
Markee
Beaumont .. ......... . ...
DaUos . .. .............. ,
EIPnso .... . .. ..... .....
Fort Worth
Galveston ...............
Houston
Port Arthur.' : : : : : : : : : : : :
Sau Antonio . .. ... . .. . ...
Shrovoport ..............
Waco . . . . ... ... .........
Wiohita FaUs ..... . ...•. .
All others ...............
SAVINGS DEPOSITS
Deoomber 31, 1937
Number of Number of Amount of
savinj!S
savings
r06~,;:g dopositors
depOSits
9,637 $ 3,730,340
3
89,267
26,396,717
8
15,679
8,323,031
2
37,462
13,137,299
3
11,162,557
18,101
4
71,257
28,687,885
10
2,897,979
6,685
2
17,169,228
22,667
5
11,036,310
24,510
3
9,344
4,602,600
3
3,415,178
6,007
3
28,631,365
56,489
69
Peroentage oban~e in
savings deposits rom
Dec.31,
Nov. 30,
1936
1937
+ 2.1
+ 1.0
.7
+ 1.9
+10.4
+ 3 .7
+ 4.8
+ 1.0
+ 4.2
.6
+ 1.2
+ .9
+ 2.7
.04
+ 6.6
+1.1
- 2.1
.5
- 9.7
- 7.2
- 2.5
+ .8
+ 5.7
+ .1
-
Reflecting generally active business con...... ..... .
ditions during December, bonus and diviA.~counts
dend payments, and the usual year-end
"':lthdrawals, debits to individual accounts at banks in
eighteen cities of the Eleventh District rose to the high~st level for any month in eight years. The upward trend
------366,955 $158,690,489 + 2.5
115
In debits that has been in evidence since the middle of
Tot.l .........
+ .8
-------------------------------------------------~-------=~~~---------------------DISCOUNT RATES CHARGED BY MEMBER BANKS DURING JANUA.RY, 1938
Debits to
Individual
II
5
Prevailing rates:
Dallos
nateF~arged oustomers on prime commeroial papor suoh as is now eligible for redisoount undor tho
2~-8
'Rate h oral Roserve Aet . ...... . . .. .. .. .. .... .. .............. ..... . ... . .. . ... .... ....... ..
nate 0 'lrged on loans to other banks seoured by bills rooeivablo .. . . . . ... . ... . .... . . .. ........ .
ion 0hans scoured by prime stook exehange or other ourrent collateral (not inoluding loans placed
n otDer markets through oorresponding banks):
nate h
'ri':n":'~~~ ... ::::::::::::::::::: ::::::: :::::::::::::::::::::: :::::::::::::::::: :::
Itate 0 arged on oommedity pap~r scoured by warehouse receipts, eto . . .... .. ••. . .............
~eattle loans . ..................................... .. .. .. ......................... .
2-4~
4*8
2- 8
6-8
El Paso
Fort Worth
Houston
Ban Antonio
Waoo
5-6
8-6
fro7
6
H
G
1-6
4-6
61
5-8
6-8
fro8
4-8
4-8
4*8
5-10
3-6
3-7
1* 6
5-8
5-6
5- 7
5-8
7-8
7
5- 8
3-8
8
MONTHLY BUSINESS REVIEW
6
INDUSTRY
While operations of cottonseed oil mills
in both Texas and the United States
showed a further seasonal decline during
December, they continued on a high level, exceeding those
in the corresponding month of 1936 by a wide margin.
Crushings of seed and the production of products at Texas
mills during the five months of the current season exceeded
those of a year ago by about 50 per cent, while at all United
States mills they were approximately one·third larger. Mill
stocks of cottonseed on December 31 were considerably
larger than a year ago, as crushings have not kept pace
with the heavy recepits from the large 1937 cotton crop.
Shipments of cottonseed products also reflected a seasonal
recession from November to December, but with the excep·
tion of linters, continued well in excess of those last year.
Cottonseed
Products
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
TexllS
United States
August 1 to Dccember 31
August 1 to December 31
This senson
Lnst scason
This senson
Lnst SOBson
Cottonseed received nt mills
5,237,071
1,455,373
862,415
4,033,041
(tena) .... ...... .. .......
1,043,368
692,914
3,609,513
2,791,836
Cottenseed crushed (tons) .. ..
Cottonseed on hand Dee. 31
1,669,033
434,877
179,377
1,263,131
(tona) . : ................
Preduction of products:
192,887,716 1,091,826,774
830,066,330
Crude oil (pounds) . ..... .. . 301,322,266
317,472
482,390
1,603,956
1,248,654
Cake and meal (tons) .......
272,046
184,590
922,038
714,205
Hulls (tons) ..............
213,288
145,443
819,103
676,225
Linters brunDing bales) ....
Stocks on and Dec. 31:
13,478,618
82,661,646
Crude oil (pounds) ......... 25,173,083
51,351,590
74,022
83,094
192,978
216,645
Cake and meal (tona) .......
122,380
53,406
63,481
156,188
Hulls (tons) ....... ........
102,358
62,170
401,187
187,752
Linters (running bales) ....
SOURCE: Bureau of Census.
,
Following pronounced recessions in the
two preceding months, consumption of
cotton in the United States declined by
more than the usual amount from November to December,
and was 38 per cent smaller than the near record consump·
tion in December last year. There were 4.33,058 bales pro·
cessed during the month, as against 484,819 bales in Novem·
ber, and 694,84,1 bales in December, 1936. During the first
five months of the current season consumption averaged 17
per cent smaller than in the corresponding period last season.
According to the Department of Agriculture, the lower level
of cotton mill activity this season has been due to an almost
continuous decline in mill sales of goods, unfilled orders,
and mill margins. In recent weeks, however, there has been
some improvement in the demand for cotton goods. Mill
stocks of raw cotton were increased slightly during Decem·
ber, but at the close of the month they were 14 per cent
smaller than a year ago.
Textile
Milling
COTTON CONSUMED AND ON HAND
(Bales)
December
Deccmber
AuguRt 1 to Decembcr 31
1936
This season
1937
Lnstseason
Cotton-grnwing states:
Cotton consumed . . . . . . . .
Cotton on hand Dec. 31 inConsuming establishmcnts
Publio storage and oom·
presses . .............. .
United Stntes:
Cotton oonsumed . . . . . . . •
Cotton on hand Dec. 31 inConsuming estnblishmonts
Publio storoge and com·
prOSS08 .. ............. .
SOURCE: Bureau of Consus.
373,298
433,058
578,327
694,841
2,258,777
2,658,255
1,449,365
1,723,155
11,791,287
7,705,309
2,650,558
3,176,502
1,718,352
2,005,556
11,867,457
7,786,860
Receipts of cotton at the ports of Hous·
ton and Galveston, augmented by the
heavy movement of Government financed
cotton to these ports, declined less than seasonally from
Cotton
Movements
November to December, and exceeded those of a year ago
by 17 per cent. On the other hand, total exports from th~se
centers reflected a decline of 17 per cent as compared w1th
December, 1936, which is in sharp contrast to the substan·
tial increase registered for the combined shipments from all
United States ports.
During the current season prices of American cotton at
Liverpool have averaged lower, in relation to prices ~f
foreign grown cotton, than for several years past, and th1s
factor has apparently caused an increase in foreign deman d
for American cotton. Shipments from the United States
during December totaled 751,001 bales, which represents a
seasonal recession from November smaller than the 1927·36
average, and 'an increase of 26.5 per cent over a year ago.
Aggregate exports during the first five months of the cur·
rent season were 10 per cent greater than in the correspond·
ing period last season. The increase in exports is attri~U'
table to larger takings by European countries, and accordmg
to the Department of Agriculture a portion of these impo.rts
have apparently been utilized to replenish stocks, wh1ch
have been very low during the past two or three years.
Spot cotton prices continued upward during the latter
part of December and the first half of January. Factors con·
tributing to the stronger prices include the active forei~
demand, the concentration of a large quantity of cotton )n
the Government loan, and the recent steadiness of prices of
many internationally traded commodities.
COTTON MOVEMENTS THROUGH THE PORT
(Bales)
Deoember
December
1037
1936
Receipts
.. . . . . . . .. . .. . . . .
196,169
185,139
Exports. . .. . . . . . . .. . . . . .. . .. • 223,371
294,954
Stooks, December 31 ...... .
OF GALVESTON
AuguRt 1 to December 31
'rbis S0l\80n
Lnst scason
1,500,780
1,509,2 11
800,853
094,1 32
906,907
877,274
COTTON-GALVESTON STOCK STATEMENT
(Bales)
December 31, Decembor 31,
10S6
1937
20,500
For Great Britain ....... ..... . . ............... ... ....... .
4,600
11,800
For Fronee ................... .. .... . ... .. ...... ........ .
2,100
57,209
For other foreign ports .......... . ....................... .
37.700
4,009
For coastwise ports ............ . ......................... .
2,000
783,714
In compresses and depots
.... ... .. ...... ........ ...... .
860,507
Total. ... .................. ............... . .. .
006,007
-
877,214
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
August 1 to December 31
December
December
10S7
This Sca80n
Last soason
1936
1,424,771
1,135,092
Recoipts
.. . .. . . .. ....... .
197,599
150,300
Exports .................... .
763,915
700,646•
156,773
164,369
865,950
589,265
Stocks, December 31 .. .. .. .
SEASON'S RECEIPTS, EXPORTS, AND STOOKS OF OOTTON AT ALL
UNITED STATES PORTS-(Bales)
August 1 to December 31
This seasen
Last .eason
Receipts ... . ........ . ... .... ......... .......... ........ . 5,808,723
5,218'7167~
988,236
618,
Exports: United Kingdom .... ... ... ..... .. ........ ...... .
France .... ...... ............. ..... ........... ..
538,660
467,894~
279,633
151,6
Italy ......................... .... .......... .
503,627
353,2376~
483,087
346,
g~;;:::.aE~r~j,C: :::::::::::::::::::::::::::::::::
an ............... . . .. . ................... .
119,921
780,lH
AI othor oountries .......... . ................ .
271,593
~
:
Jar
Total exports... ..... ..... ........ ........ ...............
Stocks held at aU United States ports, December 31. . . .... ...
3,184,766
3,237,131
SPOT COTTON PRICES-(Middling basis)
(Cents pcr pound)
December, 1937
New york ............................... .
New Orleans ... ................ ...... ... .
Dallas .............. . ........... .. . ...... .
Houston
.......... .................. . ..
Galveston ................................ .
High
8.51
8.59
7.91
8.35
8.36
Low
7.97
8.02
7.32
7.70
7.68
2,896,802
2,866,14 8
Jnn.16,
1038
8.63
8.76
8.18
8.60
8.60
MONTHLY BUSINESS REVIEW
7
,
Daily average production of crude oil in
the Eleventh District continued downward in December due entirely to a curtailment of activity
at Texas fields, as small increases in output occurred in
New Mexico and North Louisiana. During the first week of
January, however, daily average production rose slightly
above that in December.
Petroleum
The increasing demand for crude oil during the past
three years brought about sharp increases in production,
particularly in the spring of 1936 and the first eight months
of 1937, and in consequence output in this district reached
the unprecedented level of 1,725,185 barrels daily during
August. While production declined almost continuously
during the final four months of 1937, in accordance with
~educed production allowables effected to meet the decline
In consumption, the level of production in December was
~1.8 per cent greater than a year ago. Total production during 1937 amounted to 579,000,000 barrels, which is the
argest on record and exceeds the 1936 volume by 23 per
chent. Drilling activity also increased substantially during
!ne year, there being 16,181 completions, as against 13,647
1936. More than three·fourths of all completions during
oth years were producers of oil.
h
FolIowing an increase in the prices of crude oil during
the latter part of January, 1937, the market remained generally steady during the remainder of the year, due largely
~o ~h: fact .that production all.owabl~s were kept in close conOimIty WIth demand. Gasolme pnces, on the other hand,
OIL PRODUCTION
(Barrols)
Incrcaso or decronse from
Novombor, 1037
Docember, 1037
~~~\:~~.. ... .... ..... ....
Total
4,474,350
6,960,850
16,752,050
7,603,350
6,008,450
Daily Avg.
1'44,384
224.834
540,418
245,269
103,821
New M . Total Texas ... .. ..
Nortb i.X1~0
41,808,950
3,327,550
2,342,450
1,348,676
107,340
75,563
47,478,050
1,581,570
Eo'l8tT
.. ..... . .. ... .. .
Soutb ~~~ ... .. . .. ... . . .. • ..
'1'ox", Coa~~i . . : : : : : : : : : : : : :
... ............
..........
OUlSlann.
. ..
Total District
Total
+ 128,850
- 42,100
- 231,750
+ 187,250
+ 42,750
Daily Avg.
516
- 8,808
- 25.730
- 1,934
- 5,035
+ 186,900
+166,650
- 42,122
+ 2,652
+ 3,036
+488,550
-36,434
- + -85,000
-
DECEMBER DRILLING RESULTS
Number of wells
~~rtbloX... . .... .. . .. .. . . . ...
E...~ T Oxas .. .. .... . .. ........
Boutb ~~~ .... . .. . . ... .. .... ...
'1'ox.. Coasa:ni' . . : : : : : : : : : : : : : : : :
Ne M .Total Texas ....... ... .
NO~h~'~o.. . .. . . . . .... . . .. . ...
Ul8lnnn,
• • . .• •.. . . ...
Complotion.
284
248
265
230
115
Pr<>ducors
154
180
250
164
04
G..
Wells
16
1,002
30
47
851
35
25
38
2
8
Fni!urcs
64
50
13
46
21
'2
20
-
Initinl
produotion
(barrel.
dnily)
57,304
131.944
1,023,414
60.872
48,156
14
1,321,600
10,658
15,175
210
242
1,356,518
2,080,064
203
2
;~~cember totals, distriot . . .......
1,178
011
48
vember totals, distriet .. .. .... 1,564
1,254
68
·December figures represent four weeks ended Deeember 25, 1037.
tNovembor figures represent five weeks onded November 27, 1037.
have been weak during recent months due to the accumulation of stocks.
CRUDE OIL PRICES
(PrioD per barrel)
North and we. t-central Tex..... .. . .... .... .. ...... .. ... ..
E..t-central Texas .. .. ......... .. .... .... .. .. .. ..... .... ..
'rrx.. Gulf ooast ........... . .. ....... ........ .... . ... . .. .
West Texas-New Mexico .... .... . . . . . . ... ... .. . . .... . ... •
Nortb Loui. innn .. .... . . .. . ... .. . ....... . ... . . ..... .. .... .
NOTE: Prices quoted npply to oil 40 gravity nnd nbovo.
·Prices for n compnrable grade of oil not avnilnble.
SOURCE: The Oil Weekly, Hou. ton, '1'016••
December 31, Decomber 31,
1037
1036
$1.08
$1.20
1.27
1.15
1.41
1.08
1.22
1.10
.
According to figures of the F. W. Dodge
Corporation, the total value of construction contracts awarded in this district showed a further increase in December, and was the largest for that month
since 1928. The gain from November to December was due
to larger awards for non-residential construction, as residential building declined for the fourth consecutive month.
The year-to-year trend in building activity since 1932 has
been upward, the increase in 1937 being due to a noticeable
up·turn in the latter part of the year, which more than offset the smaller volume during the earlier months. The increase over 1936 is attributable chiefly to larger awards
for public works and public utility construction, including
highways, water front developments, electric light power
plants, and transportation terminals. Other non-residential
building was about one-fifth smaller in 1937 than a year
earlier, reflecting declines in awards for factory, educational, social, and public buildings. Contracts awarded for
commercial buildings, on the other hand, increased sharply.
Although the volume of residential construction during the
last four months of 1937 was smaller than a year earlier,
the aggregate for the year was 16.9 per cent greater than
in 1936, representing principally increased awards for
single family dwellings. The value of all construction contracts awarded during 1937 aggregated $151,660,000 which
is 21.8 per cent greater than in 1936, more than twice as
great as in 1932, but 4,0 per cent smaller than in 1929.
Building permits issued at fourteen principal cities during 1937 were valued at $58,816,000, which is 1.9 per cent
less than in 1936. The number of permits issued, however,
was 2.7 per cent larger than a year earlier.
Building
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thou.ands of dolln,,)
December Deoember November Jnnunry 1 to Decembor 31
1937
1036
1037
1037
1036
$ 15,027
S 151,660 S 124.584
Eleventh District.-total" . $ 10,007
$ 7,360
2,033
46,638
30,887
Rosidentinl. . . . . . . . . . . .
2,185
3.060
12,094
105.022
84,647
All other . .. .... .. .... .
16,822
4,309
United Statcs' - totnl . ...
209,451
190,696
108,465
2,054.061
2,667.030
60,001
013.446
801,021
Residential . . . . . . . . . . . .
48,480
65,487
138,464
2,041,515
1,866,099
All other. . . . . . .. .. . . . .
165,971
134,209
·37 Btntes . .. t of the Rooky Mountain•.
SOURCE: F. W. Dodge Corporntion.
----------------------,--------------------------------------------------------BUILDING PERMITS
December, 1037
December, 1036
No. Vnluation
17 $ 57,307
108
148,205
93
449,683
735,327
77
320
787,221
43
154,073
120
308,190
471,088
107
254 1,564,280
87
37,008
204
875,255
72
106,752
23
20,227
11
14,045
No. Valuntion
33 $ 30,607
214,556
143
174,075
07
132
141,635
357 1,944,439
64
50,601
614,760
184
76
43,840
324 1,640,370
126
58,802
252
303,178
82
135,278
31
144,150
13
547,577
_ _ _ Totnl . .... 1,536 $5,320,551
1,014 S6,151,868
Atnarillo . . ......... .
Au.ti
Bilau~~~i"""" " .
Cerr,us Ch' : . '.. . . ... .
Dal as
rl9t.... .. ..
El Pas· · · · ··· · · · ·· ··
Fort \~orth' ... . .. .. .
Galveston .. .......
!:IoUston ...........
Port Arthur .. ... . ...
SanA t . .. .......
Shrev~:l'°" " . . •..
Waco
.. .. ......
Wiohita ·Fnli.: : : : : : : :
+ 44.9
- 30.9
+158 .3
+410 .2
- 50 .5
+206.3
- 35.2
+974.6
5.2
- 35 .6
4.6
- 21.1
- 86 .0
- 97.4
No. Valuntion
25 $ 73.506
321,170
142
47,038
121
105,078
132
615,706
443
83,850
60
188,788
128
221,070
125
409 1,080,250
41,013
108
228,374
256
146.443
120
68,177
38
32,014
17
Pereentnge obnnge
vnluntion
over month
- 21.0
- 53.0
+838 .1
+ 276.9
+ 27 .0
+ 84.8
+110 .0
+113.1
+ 44 .8
0.6
+ 68 .0
- 27 .1
- 70 .3
- 56 .1
13 .5
2,133 $3,339,295
+ 50 .3
Percentage ohange
valuntion
over year
-
-
Novomber, 1037
-
Totnl yenr
Peroentnge ohnnge
1036
1087
,
vnluntion
Valuntion
No.
Vnluntion
over year
No.
366 $ 1,140,462
302 $ 1,178,109
+ 3.3
4,301,129
3,868,040 1,869
1,840
- 11 .0
1,196.729
1,444,669 1,400
1,697
+ 20 .7
2,718,759
3,840,722 1,385
1,611
+ 41.3
7,741.815 5,710 10,088,275
5,250
- 20.5
040,013
1,579,360
781
053
+ 67.9
8,526,115
6,711,401 2,165
2,061
- 21.3
4,000,136 1,270
1,544,909
1,346
+158. 9
4,665 18,684,535 4,538 18,766,247
.4
012,557
807,008 1,650
1,722
1.7
4,534,778 2,064
4,544,625
.2
3,136
2,850,503 1,518
2,518,071
1,570
+ 13 .2
1,171,701
438
847,496
580
+ 38. 3
225
313,005
894,698
- 65.0
207
-
26,080 $58,816,031 26,283 $59,030,685
-
1.9
MONTHLY BUSINESS REVIEW
8
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Complied by the Board of Governors of the Federal Reserve System)
.
INDUSTRiAl PRODU'CTlON
"""
'40 ,
•30
.to
/ VV\
110
.
J
.00
10
.20
•.0
\
\
i
I ~
/'\
'v-/
..
..
I 00
\
eo
V
70
....
10
70
....
.."
Itll
""
Index of physical volume of production, adjusted
for seasonal variation, 1923-1925 average
IOCr.
By months, January, 1984, to December, 1937.
=
...
FACTORY EMPLOYMENT AND PAYROLlS
.20 ""
I
•.0
110
t::::.A
.00
'""'"""YI~
10
10
70
10
f'v....
VV "'J
J
,,/
.
I 00
\
\
10
PAYROlLS
70
f\..~ If "
....
10
ID31
II..
.,.
Indexes of number employed and payrol1s, without
adjustment for seasonal variation, 1928-1925 average
100. By months, January, 1934, to December. 1987. Indexes compiled by the United States
Bureau of Labor Statistics.
=
WHOLESAlE PRICES
"""""11 0
'00
•0
eo
70
80
..'"
oa
Indexes complied by the United States Bureau of
Labor Statistics, 1926
100. By weeks. 1984 to
week endlnll' January 15. 1938.
=
EXCESS RESERVES OF MEMsER BANKS
1---=;;=::C::::~1""-7II·-t---t---j ~
o
,....
IV:SS
....
Itsa
Wednesday fill'ures of estimated exceS8 reserves for
all member banks and for selected New York City
banks. January 8. 1934. to January 19. 1988.
Industrial output declined futher in December and, according to preliminarY
reports, showed little change in the first three weeks of January. Prices CYf r!lw
materials, which had declined sharply in October and November, have been maintained since that time.
PRODUCTION
Volume of industrial production declined further in December and the Board's
seasonally adjusted index was at 84 per cent of the 1923-1925 average as co~
pared with 89 in November. The decline reflected chiefly a continued sharp curtailment of activity in the durable goods industries. Steel ingot production average~
about 26 per cent of capacity, output of automobiles and plate glass was reduce
considerably, and production of lumber and cement also declined. Total output o{
nondurable goods declined seasonally. There was a sharp decrease in output a
silk mills, and cotton consumption declined further. At woolen mills and shoe factories, however, output was maintained, following a considerable period of sha~P
decline. Activity at sugar refineries :increased further. , Mineral production m
December, as in other recent months, was at a rugh level. Output of crude 12etroleum and bituminous coal declined seasonally, while anthracite production Increased somewhat.
,In the first three weeks of January output of steel and automobiles increased
somewhat from the extreme low levels reached in the latter part of December.
Value of construction contracts awarded in December continued in about the
same volume as in the preceding three months. During this period there was a.
decline in awards for privately-financed projects, reflecting in lal'ge part further
reductions in residential building, while publicly-financed work increased.
EMPLOYMENT
Factory employment and payrolls showed further declines between the mid~le
of November and the middle of December, and employment at mines, on the ral}roads, and in the construction industry also continued to decrease. The decline .In
the number employed at factories was lal'ger than in earlier months in in-dustn e
producing durable goods, and was particularly marked in the steel, machinery, an
automobile industries. For the nondurable goods industries as a group, the decline in December was about the same as in each of the previous three months,
after allowance for seasonal changes. There was some increase in employment a.t
shoe factories and little change at plants producing tobacco products, while most
other industries in this group showed further decreases.
DISTRIBUTION
Department store sales increased in December by about the usual seasonal
amount, and the board's adjusted index was 90 per cent of the 1923-1925 average
as compared with 91 per cent in November and an average of 93 per cent in the
first ten months of the year. Mail-order business and sales at variety storeS
showed somewhat more than the seasonal increase, while sales of automobiles
declined substantially. Preliminary reports indicate that in the first half of January sales at department stores were at about the same level as a year ago .
Railroad freight-car loadings continued to decline in December, and in that
month were 18 per cent lower than the average for the first half of the year,
making allowance for usual seasonal change.
COMMODITY PRICES
Wholesale prices of basic commodities, after declining sharply in the autu~n ,
showed little change in December and the first three weeks of January. Gra1l?s,
cotton, print cloths, steel scrap, and bituminous coal increased somewhat, wh ll
leather, rayon, and wood pulp prices were reduced. Prices of a wide variety 0
finished industrial products showed further declines, and livestock products continued to decrease sharply.
BANK CREDIT
Excess reserves of member banks increased in the four weeks ending JanuarY
19 from $1,010.000,000 to $1,370,000,000 and were larger than at any time sin~e
May 1. The post-holiday decline in money in circulation, which accounted for thiS
growth of excess reserves, was larger than the increase that occurred before
Christmas.
The volume of loans at reporting member banks in 101 leading cities· declined
sharply in the five weeks ending January 19, while their holdings of investments
showed little net change. Declines occurred in loans to security brokers and dealers in commercial loans, which decreased both ill New York City and in other
leading cities. Interbank balances were built up during the period, while other
deposits decreased somewhat, reflecting largely the repayment of bank loanS,
partly offset by a return flow of currency from circulation.
MONEY RATES AND BOND YIELDS
The average rate on new issues of 91-day Treasury bills continued in JanuarY
at less than 1h of 1 per cent, and yields on Treasury notes and bonds declined to
new low levels for recent months. Yields on the highest-grade corporate bonds
also declined somewhat, while those on the lower-grade railroad issues rose.
d
f
@FedFRASER