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Monthly Business Review
OFT H E
FEDERAL RESERVE BANK
OF
DALLAS
~~~~~========~~============~==========
Volume 24" No. 12
Dallas, Texas, February 1,1940
This copy Is released for pub- F b 2
~~==================================================~~==============~h~'c~~~lo~n~i~n~a~£~oo~rn~o~o~n~p~a~pe~r~B~~e~.~
DISTRICT SUMMARY
heavy consumer buying enabled merchants to reduce inventories by considerably more than the average seasonal
amount for that month. Although inventories on hand at the
close of 1939 were still 5 per cent higher than at the end of
1938, they are comparatively low in relation to the current
volume of sales. The stock turnover at reporting firms during 1939 averaged 3.63 times, or approximately the same as
the average for the preceding three years. The turnover of
inventories at department stores in each of the past four
years has been considerably higher than in the years prior to
1936. In recent years department stores, through increased
operating efficiency, have been able to expand sales considerably with only a moderate increase in stocks.
th Tr~de and industry in the Eleventh District expanded fur. er In December, and the level of activity was higher than
In the closing month of 1938. Consumer buying at depart~ent stores was exceptionally heavy during December and
~n the first two weeks of January, 194.0, sales averaged about
I)per. cent higher than in the corresponding period last year.
lstnbution of commodities through wholesale channels
Was w?ll sustained in December, as heavy consumer buying
~ecessltated substantial fill-in orders by retailers. ConstrueIon ~ctivity increased sharply in December, following substantIal declines in the preceding two months. Petroleum
~roduction rose to a level near the all-time peak recorded in
thugust, 1937, and refinery operations in Texas exceeded
o~ of a year ago by a wide margin. The outlook for the
~gl'lcultural and livestock industries showed an improvement
~ll. December and the first half of January, as widespread
~lns or snow partially relieved the severe moisture defillency. Extremely low temperatures in the third week of
anu~y, however, damaged grain and truck crops and caused
: shnnkage in livestock. After reaching the highest level of
tnecord at the middle of December, total loans and investents at weekly reporting member banks declined modi~ately in the subsequent four weeks, but on January 10,
40, they were still $26,000,000 greater than a year earlier_
The rate of collections on outstanding accounts during
1939 ,":as practically the same as that in the preceding year,
averagIng about 4,0 per cent monthly on open accounts and
about 15 per cent on instalment accounts.
Distribution of commodities to consumers through independent retail establishments other than department stores
expanded by about 4 per cent during 1939, the expansion
beIng most pronounced in centers having a population of
2,500 to 50,000. In Texas increases in sales were recorded
at stores in most reporting lines of trade, but the most out~tandiI?g gains occu~red in the distribution of durable goods,
IncludIng automobIles, furniture, lumber, hardware and
farm implements. Sales of dry goods and general merchandise were also somewhat larger than in 1938.
PhDuring 1939 an improvement occurred in virtually all
Al ases of business and industry in the Eleventh District.
lJ t~ough the expansion was not as pronounced as in the
r lllte~ States as a whole, due largely to the very moderate
/C~lon in this district during 1938 as compared with that
a~rhi e entire country, the general level of activity was nearly
gh as in 1937.
The expansion in consumer buying, together with an increase in the volume of inventories carried by retailers,
resulted inl a substantial gain in the business of wholesale
trade firms in the Eleventh District during 1939. In the first
quarter of the year the value of sales was about the same as
that in the corresponding period of 1938, but there was
a noticeable improvement during the remainder of the year.
Buying was particularly heavy following the outbreak of
war early in September when widespread speculative purchases were made in anticipation of rising prices. Although
the rate of expansion declined somewhat in the fourth quarter, business was well sustained by numerous fill-in orders
to meet the expanding consumer demand. Distribution of
BUSINESS
In Stimulated
by the largest volume of Christmas trade in
?re than a decade, department store sales in the Eleventh
n
.
Selstr'let Increased
by considerably more than the average
iuaso:nal amount in December. This bank's seasonally ada"sted index of sales rose to 113 per cent of the 1923-25
Co erage, which is the highest for that month since 1928, and
a"rnpares with 105 per cent for December, 1938. On a daily
thtrage basis, the value of merchandise sold in December
S year was 7 per cent greater than a year ago.
.... <[NT
al dollar sales at department stores in this district durht:i
ab 939 were fractionally higher than in 1938 and only
Pa;Ut 2 per cent lower than in 1937, the year in which deall !ment store trade was at its post-depression high. When
in l~ance is made for the lower level of prices prevailing
dUro 39, it appears that the physical volume of goods sold
Ing the year was somewhat larger than in 1937.
se~epartment store inventories, after adjustment for average
the final changes, showed a moderate downward trend during
tttollthst seven months of 1939, but in the subsequent four
tern 5 when sales were slowed down by unseasonably high
Peratures stocks rose sharply. In December, however,
:
'10
DEPARTMENT STORE SALES AND STOCKS
£l£VENTH rED£RAL RtsmV£ DI$TRICT
""''''
~
so
70
~.,j"~
v
,
\ i',
-
so
I
SAJ.\itd lA,N
A~·
I
"M.
100
00
120
T)"'" ",1. . VJATION
fv\AJ - -Lx.. luS
'..,_10"'1
\'\.
100
A
~ I~
90
so
70
STOCKS
1
110
ICC
"
'"....~)J' NY
"', I" ,\.-,." \"
''''-'
" f. ...,~ '" ...,
Ml
rv'
1-
~/..,.·.,'~/ ~
eo
40
40
30
....
..,.
... ,... ,...
,
....
,...
...
,
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
30
MONTHLY BUSINESS REVIEW
2
automotive supplies, electrical goods, hardware and surgical
equipment increased sharply as compared with 1938, and the
demand for non-durable goods expanded moderately.
Employment and payrolls in Texas, after declining somewhat in January, 1939, showed an upward trend during the
remainder of the year. According to data compiled by the
Bureau of Business Research of the University of Texas, employment during December averaged 2 per cent higher than
a year earlier and payrolls were up 4 per cent. Among the
State's manufacturing industries, noticeable increases in employment and payrolls occurred at those producing cotton
textiles, forest products and iron and steel products.
The number and liabilities of commercial failures in the
Eleventh District increased further in 1939 to the highest
levels in several years. In comparison with the preceding
year, the number of bankruptcies increased by about onefourth and the indebtedness of defaulting firms was more
than 50 per cent greater, reflecting a substantial increase in
their average liability. It should be noted that although the
bankruptcy record in 1939 was less favorable than in other
recent years, it was still far better than in any of the fourteen years prior to 1934,. According to Dun & Bradstreet,
322 commercial establishments failed in 1939, with aggregate liabilities totaling $4,,4.15,000. In December, 1939,
there were 17 insolvencies, owing $243,000.
WHOLESALE AND RETAIL TRADE STATISTICS
, _ _ - - - Percentage ohange in:
,Ratio Deo. oolleotions
Net sales
Stooks'
to acoounte outstandv
,
ing Decemher 1
Deo .• 1039 from , . - - - - - - - - .
Jan. 1 to
'Dec .• 1939 from
Nov..
InstalDeo..
Nov .• Deo. 31, 1039 Deo..
from 1938
1938
1939
Regular
ment
1938
1939
Retnil trade:
Dopartmont stores:
41.8
17 .0
.7
5.1 -24.2
Totnl 11th DlBt" + 2.6 +66.9
6
42.5
19 .3
+ .9 - .6 -23.
Dallna .... " .... + 6.1 +60.3
39.5
+10.5 -24.4
13.0
.5
Fort Worth ...... .8 +96.4
41.5
+ 21.1 -20 .5
.3
Houston ........ + 1. 3 +56.0
7
41.3
.1
+ .9 -27.
San Antonio ..... + 4.0 +64.6
42.8
20.2
8.5 -24.4
+1.5
Oth~r oities ...... .4 +73.0
independentstores:t
3.5
ArIZona . . ....... + 6.1 +
" 4' 0".9'
- .4
Oklahomn ....... - 1.5
3.8
New Moxioo ..... + 4 .4 +"3'3".6'
+ 4.6
Toxas ........... + 3.6
Wholcsnlo trado:t
Machinery. eqp't &
supplios (excopt
24.8
0Ieetrica\) ....... +107.2 - 11.6
+ 6.1
+27.2 ':':''':i
42.3
+ 4.8
Dry goods ........ - 15.6 -23.7
+10.5
11.9
89.1
Groceries ........ . +
.6 .7
+ 3.6
70.5
2.0 - 5.5
.9 + 2.6
+ 2.6
Drugs ............ 72.4
9.0
2.4
+14.6
Hardwaro ........ + 6.0 - 11 .6
Electrical supplies . + 28.2 + 8.3
Tohaoco&prod·s .. - 6.5 - 12 .2
+'i:i
Burgioaloqp·t ..... 6.8 -28. 6
+12.5 - 8.7
44.3
'Stocks at close of month. tCompiled by United States Department of Commeroe.
+
+
+
+
ia:ti
+
+
+
+
+
+
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1023-25 averago - l00)
With seasonal adJustmont
Without seasonal adjustment
Total Eleventh Dist ..
Dallas ............ "
Fort Worth ..........
Houeton .............
San Antonio.. . . .. ...
Sales-Deo.
1939
1938
112.8 105 .1
127.4 116.3
129 .5 124.8
116.4 100.9
107.4
07.0
Stooks-Deo.
1939
1038
68.9
66.0
69.0
69.4
73.4
65.7
51.4
48.8
48.9
40.7
Sales-Deo.
1930
1988
105.1 181.8
203.0 186. 1
220.3 220.0
190.9 180.2
166.6 151. 7
Stocks-Deo.
1939
1938
59.9
57.4
60.7
61.1
60.2
53.9
47.8
40 .7
44.2
43 .5
COMMERCIAL FAILURES IN ELEVENTH DISTRICT
(Liabilities in thousands of dollars)
,--1939--..,---1938--v--1987----..
Numbor Liabilities Number Liabilities Number Liabilities
36
$ 764
25
$ 217
11
$ 42
January ................ .
M
m
M
W
U
ill
Fobruary .... ...... ..... .
U
_
W
9
m
Maroh ... . ........ . .... .
31
414
28
264
16
344
W
U
ill
U
M
~;;:::::::::::::::::::: W
_
June ....... .......... .. .
24
223
14
129
16
87
July .... . .. ....... ..... .
August ..... ............ .
23
~
W
m
14
"
U
W
W
~
9
•
Soptember .... ... ...... ..
22 '
555
21
316
19
205
Ootober ................ .
U
m
U
~
U
~
November ....... .... ... .
~
mUM
w
~
December ......... .... ..
256
$2,873
182
$4,415
52,117
Total......... 322
~
m
~
~
~
~
AGRICULTURE
The outlook for the agricultural and livestock industries
improved considerably during the latter part of December
and the first half of January. Rain or snow was received ill
virtually all areas of the district, and while there is still a
deficiency in subsoil moisture in many sections, conditions
are now more favorable than for several months. SnoW in
north and northwest Texas apparently protected wheat and
oats against early January freezes, and the moisture was
conducive to plant growth. Nevertheless, the condition of
wheat, which was the lowest in fifteen years prior to the
December rains, is still far below normal as a result of poor
growing conditions last fall. According to the Department
of Agriculture, the area seeded to winter wheat in Texas
during the fall of 1939 totaled 4,154,000 acres which waS
6 per cent greater than in 1938, but much smaller than in
1937 and less than the 1927-1936 average. The condition of
commercial vegetable crops in south Texas showed an improvement in December, and reports indicate that little or
no damage occurred from the low temperatures that pre·
vailed over the major portion.of the district early in January·
The Department of Agriculture has announced that cotton
acreage allotments for Texas have been placed at 9,917,000
acres for 1940, as compared with 10,139,000 acres in 1939.
It was pointed out that a substantial part of the 1940 reduction will be offset by an increase in the acreage allotted to
individual farmers under the minimum allotment provisions
of the Agricultural Adjustment Act_
Prospects for winter range feed and late winter grazing on
grain pastures were improved by the rains and snow in December and early January. The average condition of livestock ranges in this district on January 1 was about normal.
Livestock were apparently in good condition to withstand
the recent cold weather and the Department of Agriculture
reported that in view of the generally ample supply of feed
for winter needs in most areas and the improved outlook £~r
winter grazing, livestock should go through the winter )Jl
good flesh. Cattle on feed in Texas on January 1, 1940, waS
estimated at 144,000 head, which is the same as that a year
earlier, but 4 per cent smaller than on January 1, 1938.
Reflecting improved range conditions, the number of cattle
on feed in Arizona at the beginning of 1940 was one-fourth
greater than a year ago_
Moisture deficiency over the major portion of the Elevent~ District dur.ing 1939 had an adverse effect upon cr~Ps
durmg the growmg season with the result that productlOn
of most principal crops was smaller than in 1938 and in a
majority of cases was also below the 1928-1937 average
harvest. Per acre yields of most field crops were bel~w those
of 1938 and the ten-year average. In the case of cottoll, cord
and wheat, however, the smaller production was accounte
for by a reduction in the area harvested. Cotton production
in this district during 1939 totaled 3,612,000 bales, which
was 5 per cent less than ~n 1938 and nearly one-fourth
smaller than the 1928-1937 average. This decline was due
almost entirely to a smaller production in Texas, where the
acreage harvested was the smallest since 1905. The acreage
of corn, wheat and oats harvested in Texas during 1939 ~a9
also below that in the preceding year. Althouah the decltne
in the acreage of these crops was offset in par~ by increased
in the acreages of some minor crops, the total area harves te
during 1939 was still about 900,000 acres less than in the
preceding year and 3,700,000 acres smaller than the tenyear average.
MONTHLY BUSINESS REVIEW
. Although the 1939 production of agricultural commodities in Texas was smaller than in 1938, the increase in average prices of farm products was a compensating factor.
The department of Agriculture estimated the farm value of
aU crops produced in Texas during 1939 at $315,000,000,
which represents an increase of 5 per cent over the value
of agricultural products harvested in 1938. The increased
value, however, was attributable to those crops raised chiefly
for non-commercial purposes, as the value of commercial or
cash crops, including cotton, rice, wheat, peanuts, fruits,
~~!S, and truck crops, was moderately smaller than in 1938.
WIth the exception of oats, the value of feed and forage
crops produced in 1939 was greater than a year ago.
. Reflecting the lower value of commercial crops produced
In 1939, cash farm income in this district from the sale of
principal farm crops during the first eleven months of the
year averaged 13 per cent smaller than in the corresponding
period of 1938. The major portion of the decline is accOunted for by a reduction in income from the sale of cot~on and wheat, due to the smaller production as well as the
a: t that the bulk of the crops was marketed by farmers
Pnor to the advance in the prices of these commodities.
OROP PRODUOTION
(Thoueands oC units)
~---ToxnB---v--.E1eventhDistrictt______
1028-1937
1028-1037
Crop
Unit
1039
1038
avorage
19aO
1038
averago
g~::on.. . . . . . . .. Bales
2,880
3,086
4,077
4,304
4,617
5,011
Co onsced .. . ... Tons
1,258
1,378
1,816
1,053
2,054
2,632
1V1:;,'·t· ··· . . .. ' " Bushels 73,376
75,648
75,062
126,744
140,550
135,402
Oatsa (.11) .. .... BURheis 27,650
35,040
32,038
01,853
100,541
82,760
narl· · · ·· ....... Bushels 28,750
36,020
34,245
52,306
60,637
61,058
l\iecOY .......... Bushels
2,055
2,365
2,518
10,285
6,757
4,650
Or . " . .. .. ... .. Bushels 13,088
13,668
0,215
13,088'
13,668'
0,215'
'l'a~n torgbums .. Bushels 38,115
46,051
47.741
53,109
63,744
65,104
Wild\ ay.... ... Tons
1,022
1,012
700
2,024
2,026
2,413
Pea ay. . . . . . . . Tons
257
285
208
770
859
681
lri8~uts .... " '" Pounds 129,480
117,000
73,876
151,190
142,000
06,401
S", Potatoes .... Bushel.
2,660
2,050
3,361
7,713
8,013
0,174
nr:t PotatoeB . .. Bushols
3,780
4,350
4,~30
11,660
12,750
12,327
poo. lncoru ...... 'rons
2 .2
4.0
3 .3
17.5
22.0
25 .5
Ora os .......... Pound. 10,000
23,000
25,120
34,003
28,500
42,752
oge. ..... .. . . . Boxes
2,650
2,815
677
2,650'
2,815'
677'
r.PeCrutt .... '" Boxes
15,200
15,670
3,538
15,200'
15,670'
3,538'
tiall tEleventh Distriot figures represent tho oombined totals Cor the fivo states wholly or parArii attached to the Eloventh Distriot, i.o., Toxas, Louisiana, Oklahoma, Now Mexico and
Ol\a.
'Texas only.
SOu ROE: United States Department oC Agrioulturo.
o
OASll FARM INOOME FROM SALE OF PRINCIPAL FARM PRODUCTS AND
GOVERNMENT BENEFIT PAYMENTS
(In thoueand8 of doHars)
,..--November, 1039-----,.
Reoeipt. Crom
Govsrn- ,
Total rccoipts,---___.
, - - -- -----" ment November November Jan. 1 to Nov. 30
Orops Livestoek' payment.
1939
1038
1030
1038
Ari'on.
3,658
$ 6,034
$ 471
$ 10,163 $ 6,220 $ 46,070 $ 43,688
}fUi8i.~~.·.·. : : : $ 18,258
2,260
1,620
22,153
24,170
108,364
104,867
O~~hMcxico . . . 2,317
11,653
144
14,114
8,314
48,754
37,417
'l'ex..~ma .... .
7,900
7,360
2,151
17,510
17,051
161,501
158,585
12,867
10,508
6,560
38,035
01,355
460,548
466,656
,/otal... U5,000
$46,830
S10,055
$102,884
$118,010
80~l.:idCesE reoeipts Crom the ••10 oC livestock and livestook products.
.,
$835,146
$811,213
: United States Department oC Agrioulture.
FORT WORTH LIVESTOOK UEOEIPTS
(Number)
December Decomber Ohange over November Ohang. over
year
1030
month
1038
1030
- 10,607
50,062
- 16,149
54,420
34,813
- 10,115
44,087
-21,435
33,617
23,502
25,669
23,566
5,430
31,108
7,542
- 12,324
-13,518
36,816
38,010
24,402
+
OOMPARATIVE TOP LIVESTOCK PUIOES
(DoHars per hundredweight)
December
December
1030
1038
~eer steers
S9.50
SO.50
8.50
8.40
0 .50
10 .00
CUtoher eow~ear IDgB ............ .. .............. .
6.25
6.75
8.75
8.25
0. 50
6.35
7:00
7.75
8.00
~:~~ :~~~:::I;::: :::: : :::::::::::: : : : :::::: :::
&~:r.~~~~~.;.;. :::::.:;;;; ~:;;: ~ ~;;;:;:;;:::: ~ ~;
+
November
1030
$9.25
8.50
10.00
0.25
8.76
0.50
6.70
8.25
3
In contrast with the decline in income from marketings
of agricultural commodities in 1939, livestock growers in
this district again experienced a profitable year. Calf and
lamb crops were large and the production of wool was near
the record output in 1938. Moreover, prices of livestock and
livestock products during 1939 averaged somewhat higher
than in 1938. The market for wool and mohair advanced
sharply in September and October to the highest level in
recent years and despite some irregularity since that time,
prices have continued at comparatively high levels. Ranchmen disposed of most of the 1939 clips, as well as a substantial volume of wool and mohair carried over from 1938.
Marketings of cattle and calves during 1939 exceeded those
of a year ago by a substantial margin and shipments of
sheep and lambs continued heavy despite some decline from
the record marketings of 1938. The growing importance of
the livestock industry in this district is indicated by the fact
that cash income from the sale of livestock and livestock
products during the first eleven months of 1939 rose to the
highest level for any similar period for which data are
available, exceeding that in the first eleven months of 1938
by 9 per cent. Larger receipts from the sale of cattle, calves,
wool and mohair, and poultry products were chiefly responsible for the expansion in income from this source during
the past year.
Although the expansion in cash income during the first
eleven months of 1939 from the sale of livestock and livestock products was substantial, it was insufficient to counterbalance the decline in receipts from the sale of farm crops,
with the result that combined receipts were 3 per cent
smaller than in the corresponding period of 1938. This contraction was more than offset, however, by a marked increase
in Government benefit payments to farmers for their compliance with provisions of the Agricultural Adjustment Act.
Between January 1 and November 30, 1939, the Federal
Government disbursed $154,,000,000 to farmers in the five
states attached to the Eleventh District, which was much
greater than in the corresponding period of any preceding
year, exceeding that in the first eleven months of 1938 by
44 per cent. In consequence of this expansion, farm income
from all sources during the first eleven months of 1939 exceeded that in the corresponding eleven months of 1938 by
3 per cent.
FINANCE
The growth in deposits at member banks in the Eleventh
District during 1939, which was at a much faster rate than
the expansion in loans and investments, resulted in a sharp
expansion of member bank reserve balances at the Federal
Reserve Bank of Dallas and a marked increase in balances
carried with correspondent banks. The increase in reserve
balanc'es was particularly noticeable after the middle of
the year, and on several occasions during the fall, total reserve balances made .successive new high records. Reserve
balances during the year averaged about $194,000,000,
which was nearly $20,000,000 higher than the average for
1938. There has been a further growth in these balances
since the turn of the year, the total rising to $228,087,000
on January 12, or about $3,250,000 higher than the previous record established on November 25, 1939. Excess reserves of member banks also rose to a new high level in
1939. The peak was reached in the first half of November at
$83,000,000, a figure which amounted to approximately 62
per cent of required reserves. In December member banks
in this district were carrying $475,000,000 with correspond-
MONTHLY BUSINESS REVIEW
4
ent banks, which was about $90,000,000 higher than a year
earlier and more than double the current volume of reserve
balances.
MEMBER BANK RESERVES
ELEVENTH fEDERAL RESERVE
MILLIONS OF DOLLARS
DIST RICT
MILLIONS OF OOLLARS
2~0
250
1-----I-----I-----I-----l-----l------:cEl 2CO
·REi,ERVES :·P~~~p.~,:.;;;:;+.: 100
50
o
o
103 4
1030
1937
1939
Total earning assets of the Federal Reserve Bank of Dallas were reduced $12,600,000 during the year ended January 15, 1940, reflecting chiefly this bank's pro rata share
of a net reduction in the System's holdings of United States
Government securities. Member bank borrowings from this
bank were in small volume throughout 1939. The peak was
reached early in August at only $451,000; thereafter, borrowings followed a downward trend, being completely liquidated early in January, 1940. Industrial advances were reduced further in 1939, totaling $487,000 at the middle of
January, 1940, as compared with $771,000 a year earlier.
Federal Reserve notes of this bank in actual circulation,
which amounted to $81,376,000 on January 1, 1939, showed
an irregular decline during the first half of the year, reaching the year's low at about $75,000,000. There was a gradual expansion during subsequent months and the seasonal
peak was recorded on December 23 at $86,142,000. Since
that time the return flow of currency from circulation in this
district has been in substantial volume with the result that
our note circulation had declined to $81,386,000 by January
15, 194,0. This amount was $2,600,000 greater than on the
corresponding date of 1939.
The higher level of business and industrial activity in the
Eleventh District during the past year resulted in an increased demand for credit at weekly reporting member banks
in leading cities. Total loans showed a counter-to-seasonal
increase during the spring and summer and this gain was
followed by a sharp seasonal expansion during the remainder
of the year. The increase over the year amounted to $41,
000,000, and total loans outstanding at the close of the year
were the largest since December, 1931, but about $100,000,000 below the 1929 high. The decrease from 1929 reflects in
large part the smaller volume of loans on securities. Although the major portion of the expansion in loans during
the past year was utilized for commercial, industrial and
agricultural purposes, nearly all types of loans showed an
increase. In contrast with the expansion in loans, holdings
of investment securities were reduced sharply, reflecting a
liquidation in direct obligations of the United States Government. The major portion of the contraction took place
in the first six weeks of the year, and was apparently effected to take advantage of the appreciation that had occurred in security prices. Moderate increases in holdings of
Government guaranteed obligations and of other securities
partially offset the decline in holdings of Government direct
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollara)
Jan . 15,
Jan. 15,
1939
1940
1210,032
Total cash rcoervco . ... . ...... .. ..... . . .. . .. .. .... . $256,177
4
26
Discounts for member hanks . . . .. .. . .•............
None
151
Other hills discounted ........ ....... .... . .. .. . .. . .
771
Ind ustrial advances ...................... .. .. . . .. .
487
16
None
Bills bought in the open market ..............•.....
106,814
United States Government seeuritico .. . .......... .. .
94,362
107,627
95,004
Total earning assets ......... ..... ... .... ... ..... .
222,741
184,579
Member bank reserve deposits ..... .. ............ . .
78,741
81,386
Federal Reserve notes in actual cireul.tion ......... .
46
Commitments to make industrial advaneco ......... .
Nnne
Deo.15,
1939
1260,09~
140
506
None
90,875
91,525
215,606
83,290
None
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollan)
Jan. 10,
Jan. 11,
Dee. 13,
1940
1939
1989
Tot. 1loans and investments.. ..... .. . . ... .. .. . . ... $548,172
1522,092
1560,005
Total loans. .. .... .. ................ ........ .....
283,965
242,485
285,551
Commcreial, industrial and agricultural loaDs . .....
188,170
159,079
190,191
Opcn market paper ..... . ............... . .. .....
1,749
967
1,858
Loans to brokers and dealers in seeuritico.. .. . . . .. .
3,033
2,949
5,163
Other loans for purchasing or carrying securities
14,145
13,239
14,086
Heal estate loans ........................... ::::
22,416
20,008
21,635
Xfl·~~h~~ r~a~~::.::::::::: ::: : : ::::::::: :: :::: :
UIII~ed ~tates Government direct obligations. ... .....
g~~,gatl ons.r~IIY guaranteed by United Statco Govt..
er seeurtt,co. . . .. . .. . .. ... . .. . .. .... ..... .. . ..
1teserves with Federal Reoerve Bank. .. . . . . ... . .•. ..
Enlances with domestic banks. ... . .. . . .. . . ... . . . ...
T.ema;; d dcposit&-adjusted' ..... ..... .. .. :.... . ..
U~it~d eS't~~::'G~~~~~~~i d~jX,~it~:: :: :: ::::: ::: : : :
54,~~
46,~~g
52,:~~
153,132
53,596
57,479
138,522
261,903
459,494
179,806
43,395
56,406
115,258
218,641
426,658
164,368
52,209
57,87 7
138,860
264,231
472,833
2~~'~~~
2~~:~~~
2~~,m
137,122
133,466
135,504
Interba?k deposits. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Borrowtngs from Federal Reserve Bank. . .. ... ... ...
None
None
None
'Includes all demand depo.its other than interbank and United St.tes Government, less
oash items roported as on hand or in proe ... of collection.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Average of doily figurc&-in thous.nds of doUars)
Combined total
Deoomber,
Deeemhor,
August,
September,
Oetobor,
November,
Deccmber,
Gr08l
demand
1937 . . ....... $1,117,735
1938 .......... 1,189,670
1939 .. .... .... 1,208,731
1939 .. . .. . . . .. 1,255,634
1939 .. ........ 1,305,705
1939 .......... 1,340,118
1939 ........ .. 1,344,386
Abil~ne .. ...
Austm......
Bea~mont. ..
Corsicana....
D.Uas. . . . . .
EI Paso. . . . .
Fort Worth..
Galvcoton...
Houston.. ...
l'orl Arthur..
Roswell .. ,,,
San Antonto.
Shroveport...
Texarkana'..
Tueson.. .. ..
Tyler. . ... . .
Waco.......
Wichita Falls
n.....rv. oity hanka
Groll
Tim.
demand
1211,810 1607,769
223,336
665,072
232,308
701,997
231,820
729,653
231,863
760,455
232,340
777,045
234,145
777,931
Country bon~
Gro8S
Time
demand
$116,993 $509,966
123,655 524,598
506,734
128,122
123,084
525,981
127,567
545,250
128,081
563,073
130,299
666,455
Time
I 94,817
99,681
104,186
103,736
103,796
104,259
103,846
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of doUars)
___PetRo ohange from--...
PercentSge
December December November r - - - Total ysar -----. ohango frolll
1939
1938
1939
1939
1938
1988
$
9,917
+.7
+19 .5
I 102,845 I 102,235
+ .5
39,330
+11.3
+34.5
410,405
377,427
+ 8.7
26,738
+ 4.9
+ 9. 1
278,766
278,960
_.1
4,220
+ 9.0
+27.3
39,780
39,186
+ 1.5
326,097
+13.6
+28..
2,992,939 2,824,286
+ 6.0
35,877
+10 .2
+12.8
349,032
317,377
+10. 0
104,386
+ 7.3
+25 . 7
973,836
974,451
_ .1
29,689
- 3.4
+.8
302,216
321,473
- 6.0
283,263
+11.2
+184
2729307 2533651
+ 7.7
10,723
+ 8.6
+14:6
'109:301
'109:031
+.2
5,639
- .7
- 3.5
52,816
51,953
+ 1.7
78,508
+ 5.1
+19.0
830,718
787,403
+ 5.5
54,966
+ 1.4
+20 ..
522,484
524,169
_.3
9,328
+ 6.4
+27.7
87,896
86,440
+ 1.7
13,159
+ 3.7
+ 9.2
139,359
134,987
+ 3.2
13,621
+ 2.4
+16.2
137,473
142,865
- 3.8
16,926
-.4
+22 5
166227
158635
+ 4.8
17,997
+ 2.5
+38 : 1
174:836
193:273
- 9.5
--
Tote!. .. $1,080,384
+ 9. 1
+21.7
110,400,236 19,957,852
+ 4.4
'Inoludes the figuree of two bank. in Texarkana, Arkan..., looated in the Eighth Distrio t •
SAVINGS DEPOSITS
Number of
reporting
b.nks
3
Boaumont ... . .......... .
8
Dalh", ... ........ . . .... .
2
EI Paso .... ............ .
3
Fort Worth .... ......... .
4
Galveston .............. .
10
Houston .............. .. .
2
Port Arthur .. .... . ... .. .
San Antonio ............ .
5
Shreveport ......... . ... .
3
Waco ........... ....... ,
3
Wichita Falls ........... .
3
69
AU other ." ........... ..
Tota!. ........ ..
115
Deeemher 31, 19a9
Percentage ehan~e in
,__------~, ••vinga dep'osit~
Number of Amount of
s.vings
.avin~. r Deo.31,
Nov.30,
depo.i""n
depOSita
1938
1939
9,840 $ 3,921,836
2
+. 9
7
89,097
26,695,421
l' 7
17,657
8,488,018 + 5:0
2.~
36,101
13,268,345 - 3.0
- 2. 04
18,777
12,135,307 + 1.7
+. 8
74,720
30,993,140 + 4. 7
+ 1' 9
=
:j:'
2~:~~~
I~:m:m ~1~: ~
:j: 1:9
~:~~
~:~~~:~~ ~ U
~:~
24,899
+ .~
11,933,360
+ 4. 1
58,613
30,148,655
+ 1. 8
.::...-:-:-
374,066
$167,441,124
+ 1.2
+.5
MONTHLY BUSINESS REVIEW
obligations, but total investments at the close of 1939 were
still $27,000,000 less than at the end of 1938.
Despite the contraction in security holdings during 1939,
total loans and investments near the end of the year were
at the highest level of record. As compared with 1929, security holdings at the end of 1939 were $156,000,000 larger,
and this expansion in investments more than offset the $100,.
000,000 decrease in loans during the ten-year period.
Deposits at reporting banks continued the sharp upward
~rend in 1939 that had been in evidence during the preced-
~ng
five years. The expansion was much greater than that
~n loans and investments, with the result that the volume of
Idle funds at these banks showed a further sharp increase.
The increase in deposits totaled $97,000,000, which is acCOUnted for by additions to adjusted demand and interbank
deposits both of which rose to newall-time peaks during
~e year. Reserves of these banks carried with the Federal
eserve Bank of Dallas were increased $21,000,000 during
the year and balances with other domestic commercial banks
Were expanded by $59,000,000.
REPORTING MEMBER BANKS IN LEADING CITIES
~IONS
OF OOI.l.ARS
~~~~--j!\CO
!Oo I - - ! - - - - - I -
t-+=-~:"'--+----+----1----t-----1 """
--t----+-----±------:ilOO
----+-----1200
100
",)t,::-U.L..W.~,-,-,-....J.........~u...............L..~~...........L~,,==~.....J...u..'-'7.~.....w
IQl4
I~
t03&
100
1039
1Deposits at all member banks in the Eleventh District
II So showed a further sharp upward trend during 1939.
!he seasonal decline during the spring was very small and
III the last half of 1939, the combined average of gross deIll.
and and time deposits established a new all·time peak in
each succeeding month. During December total deposits
a
Veraged $1,579,000,000 which was $166,000,000 greater
than' h
h
3 The increase in d
' d'
In t at mont of 19 8.
epos1ts urmg
1939 w.as double that in the preceding year.
to individual accounts at banks in eighteen cities
°f Dthebits
e Eleventh District were maintained at a level 9 per
Cent h' h th
d'
D
b
d
d d
th
19 er an a year ago urmg ecem er, an excee e
ose for any corresponding month since 1929. During the
h
.. ast year, charges to depositors' accounts averaged 4 per
Cent greater than in 1938 and although the aggregate was
dpp.roximately 3 per cent smaller than in 1937, the total
;"urIng the final quarter of 1939 was 4 per cent greater than
. . , th
at period of 1937.
INDUSTRY
d C.onstruction contracts awarded in the Eleventh District
i urIng December showed a pronounced increase over those
tn the preceding month, reflecting an expansion in awards
tor heavy engineering projects. The value of awards for this
~p~ of building, which includes public works and public
11 \hty construction, was only 4 per cent belo-w the heavy
~ Utne in December, 1938, and exceeded that for any other
onth during 1939. Residential building declined consider-
ably in December, due in part to seasonal factors, and for
the third consecutive month was smaller than in the corresponding month of the previous year.
During 1939, the aggregate value of construction contracts
awarded in this district was the largest since 1930, exceeding
that in 1938 by about 6 per cent. The increase during the
year was accounted for chiefly by an expansion in privatelyfinanced construction, which registered a substantial increase
in each of the major types of building activity. The construction of publicly-financed residential buildings showed a
marked expansion, as a result of awards for several hU'ge
slum-clearance projects under the United States Housing
Authority, but this expansion was more than counterbalanced by declines in awards for the constl"Uction of publiclyfinanced non-residential and engineering projects.
Among the several types of building activity, the most
pronounced increases during 1939 occw'red in residential
and public utility construction. The value of contracts
awarded for residential building rose to the highest level in
more than ten years and exceeded that in 1938 by 27 per
cent. The construction of single-family dwellings for owner
occupancy showed only a moderate expansion during the
year, but there were substantial increases in speculative
building and in slum-clearance projects. The value of apartment houses constructed in 1939 was more than double that
in 1938, but the value of contracts for dormitories and hotels was only a small percentage of the preceding year's
total. Public utility construction in this district increased
sharply in 1939, following several years in which this type
of building had been at a low level. The expansion oc·
VALUE OF OONSTRUCTION OONTRACTS AWARDED
(In tbousand. of dollars)
December Deoember November January 1 to Deoember 31
1930
1988
1039
1930
1988
Eleventh District-total.. . $ 17,608 $ 23,816 $ 12,672 $ 190,110 $ 187,523
Rc.idential. ... .. ... .. .
4,762
5,527
6,186
88,484
65,739
All other ... ....... ... . 12,841
18,280
6,486
115,676
121,784
United StatO!'-total.. .. . 354,098
389,480
209,847 3,550,543 3,106,928
lksidcntial . ......... . .
88,681
01,539
116,588 1,384,272
985,787
265,417
207,000
183,250 2,216,271 2,211,141
AI~;;:~:~ ~~t ~'f 'ih~ Rocky Mountaino.
SOUROE: F. W. DodgeCorporation.
BUILDING PERMITS
Dooember, 1939 Pereentago
valuation ohange
from Jan. 1to Deo. 31,1939 Poroentago
eb.ngo
....-------,,--------.,, valu.tion
No. Valu.tion "Deo.,1988 Nov.,1939 No. Valuation from 1938
Abilene. ....... 10 $ 16,980 -52.6 - 41.2
285 $ 577,560 - 26.8
Amarillo....... 31 106,865 -89.9 - 40.9
713 2,634.476 - 18.1
Auotin......... 188 275,898 -110.8 - 20.0 3,117 7,178,716 + 16.5
BoaulDont. ..... 83 85,401 +18.0 - 73.6 1,660 1,714,346 + 35.8
Corpus Obristi.
121 623,040
178,204 -53.0
+12.9 -- 86.9
1,879 12,843,889
6,597,478 +
+114.2
Dallas'....
..... 488
9.9 7,123
4.0
EI Paso. ....... 69 161.205 +16.3 + 16.9 1,143 2,573,035 + 46.7
}'ort Worth..... 158 403,092 -aU - .1 2,771 7,116,824 + 24.3
GalvO!ton...... 122 107,071 - 72.7 + 44.4 1,789 1,436,009 - 40.1
Houston........ 364 1,040,045 +28.0 + 39.8 6,024 25,373,545 + 1.3
Port Arthur... . 94 69,821 - 38.5 - 42.5 1,531 1,143,917 - 24.3
San Antoaio.. .. 461 461,898 +12.9 - 56.3 4,800 8,421,256 + 80. 1
Shroveport.....
+ .6 -- 3.5
Waco.......... 122
33 269,400
57,206 -32.8
4.8 1,801
751 5,868,306
1,406,104 +
+ 24.6
3.5
Wichita Falls ...__
34 _2_63_,4_07_ -21.7 +134.1
588 1,280,944 + 4.2
Total. ... 2,378 $5,019,632 -29 .0 - 23.5 35,025 $86,256,405 + 15.0
'Inoludes Highland Park and Univeroity Park.
PORTLAND OEMENT STATISTICS-TEXAS MILLS
(In tbousands of barrelo)
Stooks (end of month)
,---Produotion-v-- Shipments ~
,
1939
1038
1030
1938
1089
1038
January ... ... ......... . . 673
334
628
530
826
752
444
545
532
852
664
~~r~:~:: :::::: :::::::: 571
409
664
607
646
655
681
720
751
665
580
700
853
~;~l.: ::::::::::::: : :::: 772
717
686
612
795
058
JuDe ......... .......... . 537
611
644
664
688
905
July ........... .. ...... . 667
630
585
507
820
1,027
August ....... ....... ... . 485
300
582
570
722
838
September .... .......... . 685
624
585
601
822
862
Ootober........ .. ... ... . 704
536
568
650
058
748
November .. ........ .... . 478
648
554
636
882
750
Deoember ........... .... 547
605
518
584
011
781
Total. . . . . ... .. . 7,888
6,954
7,207
7,121
SOUROE: United States Burcnu of Mines.
MONTHLY BUSINESS REVIEW
6
curred chiefly in electric light and power projects and in
pipe lines. In the non-residential field, the construction of
virtually all types of buildings for commercial and manufacturing purposes increased moderately over the year. A
sharp reduction in the value of street and highway improvements was chiefly responsible for a 22 per cent decline in
public works construction.
CONSTRUCTION CONTRACTS AWARDED
ELEVENTH fED[ RAL RESERvt
MILLIONS OF DOI..LARS
OISTRICT
MILUO"" ' " OOlLA:g
40
30
20
10
J..-.......jf---V
10
''''''
The valuation of building permits issued at fifteen principal cities in the Eleventh District expanded further in 1939
to the highest level in ten years, exceeding that in 1938 by
15 per cent. Eleven of the reporting cities participated in
the expansion over 1938. The most pronounced gains occurred at Beaumont, Corpus Christi, EI Paso, Fort Worth,
San Antonio and Shreveport. The value of permits issued at
Houston and Dallas was only moderately higher than in
1938; nevertheless, the aggregate for these two cities represented nearly one-half of the total for all reporting cities.
The expansion in building activity during 1939 resulted
in a further increase in the operations of allied industries.
The production and shipments of Portland cement from
Texas mills closely approximated the peak levels attained
in 1929, and operations at southern pine mills showed an
expansion of 5 per cent over those in 1938. The demand for
lumber during 1939 exceeded production hy ahout 5 per
cent, with the result that mill stocks were reduced by a corresponding amount. Unfilled orders for lumber on the books
of mills at the close of 1939 were 14 per cent greater than
a year earlier.
Crude oil production in the Eleventh District and the
United States continued to expand in December. Daily average production in the nation as a whole rose to the highest
level of record, and output in this district was only 4 per
cent under the all-time peak recorded in August, 1937. Refinery operations in the United States declined further in
December, but production of gasoline continued in excess
of consumption and stocks showed a further sharp expansion.
Operations in the petroleum industry during 1939 were
maintained at a high level. Production of crude oil in both
the Eleventh District and the United States was greater than
in 1938, but was lower than the record output in 1937. Crude
oil runs to refinery stills during 1939 showed an increase
of 7 per cent, as compared with 1938, reaching the highest
level of record. As the demand for crude oil was in excess
of production, there was a further sharp decline in aboveground stocks of crude oil, which were reduced appro.ximately 35,000,000 barrels during the year. The major portion of the decline occurred in the last half of August when
most of the wells in the mid· continent area were shut down.
At the close of 1939 crude oil inventories were 13 per cent
smaller than a year earlier and only moderately above the
17-year low recorded on October 21, 1939_
Preliminary reports indicate that the demand for petro'
leum products was likewise in record volume during 1939,
the average exceeding that of a year ago by about 7 per
cent. Export demand was 3 per cent greater, and the domes·
tic demand was up 8 per cent. The most significant increas~
occurred in the distribution of gas and fuel oils and lubrI'
cants. The consumption of these products was much greater
than production, and as a consequence, stocks on hand at
the close of 1939 were considerably smaller than a year
earlier. Although the demand for gasoline was the largest
in the history of the industry, averaging about 5 per cent
greater than in 1938, production expanded by a larger
amount, causing stocks to rise to an unusually high level.
At the close of the year gasoline inventories were 13 ped'
cent greater than a year earlier, and the highest of reco r
for that season of the year.
The average pFice of gasoline in the United States, which
had declined sharply in 1938, increased moderately during
the first half of 1939 and remained fairly steady in the sub·
sequent four months when consumption was at an all-time
high for those months. During November and December
prices of gasoline in the mid-continent area showed are·
newed weakness, declining fractionally in each succeeding
week, reflecting the seasonal decline in demand, the heavY
output and the consequent rapid accumulation of inventories.
The downward trend in prices persisted during the first half
of January, as stocks of gasoline continued to expand. prices
of gas and fuel oils and lubricants were very strong at the
close of 1939, reflecting the heavy demand for these products
occasioned in part by the high rate of industrial production,
the increased use of oil for heating purposes and the expan'
sion in foreign demand. Posted prices of crude oil at mosJ
fields remained unchanged during most of 1939, but upwa r f
adjustments at some fields were made in the latter part 0
the year.
Drilling activity, which normally declines in December,
showed a sharp increase in the closing month of 1939, com'
pletions being at the highest level of record for that mo nth
More numerous completions were reported for a majority 0
states, indicating that the increase was fairly general. F?r
the year as a whole, drilling activity in the Eleventh DIS'
trict was 21 per cent lower than in 1938, but a noticeable
expansion in some other sections of the United States, pa~'
ticularly Illinois, Michigan and Indiana, partially offset l
decline, with the result that total completions in the Un1t,e
States were only 3 per cent smaller. In comparison wlth
1937, when drilling activity was at its peak, total comple·
tions in the United States during the past year were 17 per
cent smaller, while in this district the decrease was about
36 per cent.
f
0J
Cotton mill activity in the United States, after adjustment
for seasonal variations, showed a further expansion in De'
cember. There were 653,000 bales of colton consumed during
the month, which represents a smaller-than-average decrInae
from that in November, and as a consequence, the Boar
of Governors' seasonally adjusted index of cotton consumP'
tion increased further to an all-time high level. When all~w'
ance is made for customary seasonal changes in activI~Y'
operations at domestic c'otton mills showed an almost unl~'
terrupted expansion during the final eight months of 193 ~
the index of cotton consumption having risen 38 per cell
MONTHLY BUSINESS REVIEW
during the period, or from 105 per cent of the 1923-1925
average ill April to l4.5 per cent in December_ The latter
figure compares with an index of 120 per cent in December,
1938. During the initial five months of the current season
there were 3,300,000 bales of cotton consumed in the United
~tates, as compared with 2,800,000 bales in the correspondIng period last season. Coincident with the expansion in cotton consumption, mill margins showed a substantial increase, reflecting chiefly an expansion in prices of finished
products. According to the Department of Agriculture, mill
?largins rose from a low in 1939 of 9.33 cents per pound
~ May to the year's peak of 15.83 cents per pound in Octoer. Although margins fell off somewhat in the final two
Inonths of the year, due chiefly to the increase in prices of
haw cotton, they averaged 13.06 cents per pound in Decemer, which was 22 per cent above that a year ago and 4 per
cent higher than the 1928-1937 average for that month. FollOWing a substantial increase during the first half of Decemb~r, manufacturers' sales of textile products apparently dechned somewhat in the subsequent two weeks. Consuming
establishments continued to make heavy purchases of raw
Cotton in December. Stocks on hand at the close of the month
Were the largest for any month-end since April, 1937, and
eXceeded those of a year ago by 9 per cent. Inventories of
haw cotton in public storage and compresses were reduced
bY much more than the average seasonal amount in Decemer, and at the year-end they were 5 per cent smaller than
at the close of 1938.
Operations at cotton textile mills in Texas have followed
7
the largest for any corresponding period since 1933, exceeding those in that period last season by 54 per cent. Between
August 1 and December 31, 1939, shipments amounted to
approximately 1,900,000 bales, which represented 60 per
cent of the total cotton exports from the United States.
Following the sharp increase in November and the first
half of December, domestic prices of raw c'otton showed
relatively little net change in the subsequent four weeks.
On January 15 the price of cotton, middling, 15/16-inch
staple, at the ten designated spot markets was 23 per cent
above that at the beginning of November and 26 per cent
higher than a year ago. The higher level of cotton prices
has resulted in numerous requests for the release of cotton
from the Government loan stock. Many producers who had
borrowed from the Commodity Credit Corporation on their
1938-1939 cotton have retired their loans and sold the cotton in the open market.
CONSUMPTION, STOCKS AND EXPORTS OF COTTON
(BahlS)
December December November Au ~ust 1 to December 31
1030
1088
1030
TIllSS08S0n Last season
Consumption at:
11,040
12,800
58,175
8,001
51,377
Texn. mills",.,.". "
United States mills.. ,.
652,605
565,027
718,721
3,311,702
2,708,708
U.S. stookH-cnd of month:
Tn consuming estab'mts , 1,850,664
1,782,040
1,700,877
Public stg.« comprcsscs. 14,581,642 15,330,720 15,484,508
Exports from U. B. to:
United Kingdom •......
162,873
51,282
158,364
053,598
243,003
France, .. , . , .. ,. , .....
67,451
32,170
40,378
300,364
273,043
Italy ....... . , ........
03,761
243,201
86,786
80,810
151 ,003
Germany , ..... .. , ....
Nono
24,614
27,522
None
168,736
Other Europe , .. , ... .. .
160,825
73,088
124,504
700.058
426,685
~ trend in close conformity with that for all such mills in
iir~tb~~ ~~~~ i~i~: : ' : : :
128,932
188,878
112,837
36,707
116,707
103,782
422,171
478,481
457,307
181,420
he United States. Consumption of cotton was maintained
at a higher rate than a year earlier throughout most of 1939,
h~d between August 1 and December 31 it increased to the
t Ighest .level in several years. The aggregate amount of coton consumed during the year averaged about 7 per cent
i~ove that in 1938, and the expansion thus far in the 193940 season has amounted to approximately 13 per cent
oVer that in the corresponding five months last season.
Total exports . ...
806.720
368,048
583,644
3,143,395
1,002,367
. Following a sharp decline in November, exports of Amer~can cotton resumed their upward trend in December, due
In part to increased freight space available in ocean-going
vessels. Shipments amounted to 807,000 bales during De:Inher, which was 38 per cent larger than in the preceding
Onth and more than twice as great as in the corresponding
0nth last year. During the first five months of the 1939\ h~O season, exports of cotton amounted to 3,143,000 bales,
th Ich Was nearly two-thirds greater than in that period of
In e preceding season and about equal to the volume of shipnts in the initial five months of the 1937-1938 season.
b though increased exports to Great Britain, which have
II een augmented by deliveries under the barter agreement,
~counted for more than one-half 0.£ the expansion in shipIIIe~ts over the preceding season, movements to virtually all
GIIJor importing Continental European countries, except
oferlDany, and to some other countries have exceeded those
fal' a y~ar ago. On the other hand, shipments to Japan thus
th this season have averaged 8 per cent smaller than in
e corresponding five months last season.
du~J(Ports of cotton from the ports of Houston and Galveston
ring the first five months of the 1939-1940 season were
COTTON CONSUMPTION AT TEXAS MILLS
Ootober . , , , , .. , , , . , , , "" . , , . . , .. , . , . " , . , , , ... .
November .. " ,.,.,' , ., .. . , . . . , . . . . . , "" ....... .
December, .. "., . . . ", ,,,,,, ... ,,,., "".,." .. ,
1030
10,378
0,785
10,901
9,240
11,182
10,355
0,182
11,002
11,115
12,140
12,800
11,040
1938
8,737
8,964
10,551
0,356
10,622
10,248
10,731
11,529
10,878
10,002
0,887
8,901
1037
10,612
10,558
12,042
12,362
11,864
11,728
11,141
10,483
10,012
0,435
8,757
9,517
TotaL ... " .... , . . ... ,' .. .. , . . . . . ,.,
120,258
120,586
130,011
January "" .. ".,. " . , .. ,.,.,. , .,. , ., .. " .. , ... ,
February .. ,., .. ".",,, .,. , . , .. ,,,,,,,,,,,,,, .. ,
Maroh, .. . , , . , . , ..... , , , ... . . " , . , , , " , , , . , . . ...
~;~::: :::: :: ::::: :: : :: : : ::::::::: : : : : :::: :: ::::
June" ... , , ... , .. " " . , , , , , , " , . , , , . " , . , ...... ,
July . . , .. " , . . . . , .. " , .. , ,." .. "'''' ' ' " " ", . ,
~~:t~~bc''', ::::::::::::::::::::::::::::::::::::::
CRUDE OIL PRODUOTION
(Dorrels)
December, 1030
Increase or decrease in daily
r-----------.,
average production from
Total
Daily avg.
produotion
production
Dec., 1038
Nov., 1939
0
l\i
North Texas" .... , ...... .. . ,
Wcst Texas ................ , .
Enst Texas .......... " ..... ,
South Texas . . ............ , ..
Texas Ooastal ............. , ..
5,242,450
8,835,150
16,066,200
7,030,050
7,627,750
160,111
285,005
547,207
220,776
246,056
Total Texna . .. .. . .. .
New Mexico, .. ... " .. , .. ... .
North Louisiana .. " ... .... . , .
45,701,600
3,382,600
2,150,650
1,474,245
100,116
60,376
+ 150,863
+ 0,860
- 1,345
+112,443
+ 8.466
+ 1,863
Total District . .. , .. . , 51,284,850
1,652,737
SOURCE: The Oil Weekly, Houston, Texaa.
+168,387
+122,772
+
+
+
+
28,442
46,812
65,450
10,453
20,612
+
+
+
+
+
6,538
23,205
38,074
19,993
28,643
RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT THE PORTS OF
HOUSTON AND GALVESTON-(Dales)
December December November Au~ust I to Deoember 31
1030
1038
1080
Th,s season Last season
Reccipta." .. , .... , ', .. ..
471,850
174,003
541,267
2,700,880
1,710,960
455,738
303,740
350,357
1,804,851
1,231,761
Exports . " "." , . .. ,., ..
Stocks, end of month . . ... 1,762,632
1,752,328
1,604,331
MONTHLY BUSINESS REVIEW
FEBRUARY 1,1940
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
..."'"
INDUSTRIAL PRODUCTION
.Eft
"'"
140
140
130
I 30
120
)1 20
11 0
J~
\
f
I
tv
.'y./
toO
90
J
90
/
so
70
eo
60
1934
1935
1935
1937
1938
1939
Index of physical volume of production. adjusted
for seasonal variation. 1928-1926 average
100.
By months. January. 1934 to December. 1989.
=
..lit
110
110
100
100
o"La~
90
eo
70
..."'"
DEPARTMENT STORE SALES AND STOOKS
,NT
/
1.AjVrv"
~
.., . /
~
ITOCK~~
.1
1\';/r-v . eo
90
70
"'---
f-..--/"
'"----
60
~o
40
40
19~
'934
1938
1937
1938
1939
Indexes of value of sales and stocks. adjusted for
seasonal variation. 1928-1926 average
100. By
months. J anuary. 1984 to December. 1989.
=
-
...
WHOLESALE PRICES
,1ft CZKT
110
90
80
70
h
-v
V
90
----... N
Industrial output decreased in December, but by a smaller amount than is usual at tl!is
season, with the consequence that the Board's index, which allows for usual seasonal varlll ·
tions, advanced further from 124 to 128 per cent of the 1923·1925 average. As in other recent
months, the rise in the index continued to reflect mainly increased activity in industries pro·
ducing durable goods. Automobile production rose sharply in December owing to the reopen·
ing of plants of one large producer which had been closed for almost two months. Plate glass
production also increased. At steel mills activity was maintained near the high level that pre·
vailed in October and November; fourth quarter production of steel ingots was greater tha l1
in any other three·month period on record. Output of zinc and deliveries of tin continued to
increase in December, and lumber production declined less than seasonally.
In the nondurable goods industries, where production had been at high levels tlu'ougho ut
the autumn, changes in output in December were largely seasonal in character. At wool.en
textile mills, however, there was a considerable reduction in activity, and activity at 611~
mills declined to a low level, reHecting in part continued high prices of raw silk. Output °d
crude petroleum continued at a high rate in December, while coal production was reduce •
following a large volume of output in the two preceding months.
In the first half of January steel ingot production was at a somewhat lower level tha ll
in December, while automobile assemblies were maintained at about the same high rate as
in the previous month.
Value of construction contracts awarded, as reported by the F. W. Dodge CorporatioP•
increased further in December, owing to the inclusion in the December figures of a large
amount for a dam under construction by the Tennessee Valley Authority. Contracts for
private building, both residential and nonresidential, declined seasonally
EMPLOYMENT
According to reports from leading industrial states, factory employment decreased lesS
than seasonally in December and payrolls showed a further advance.
110
100
100
PRODUCTION
I 10
I00
-V
V
70
/ V
\
/\
80
I
Industrial activity, after a rapid rise in recent months, declined less than seasonally ~
December. In the first half of January activity did not show the usual seasonal increase. DIS"
tribution of commodities to consumers was maintained in large volume.
so
70
60
DISTRIBUTION
Distribution of commodities to consumers increased further in December. Sales at varietY
stores showed about the usual sharp rise and sales at deparlment stores and mail·order
houses increased more than seasonally.
Freight-car loadings declined by more than the usual seasonal amount from Novembf
to December, reflecting chiefly a further reduction in coal shipments and a decrease in loa ·
ings of ore, which had heen at a high level in the previous month.
COMMODITY PRICES
1939
1938
1937
1936
1935
1934
Index compiled by the United States Bureau of
Labor Statistics. 1926
100. By weeks. 1984 to
week ending January 18. 1940.
=
MEMBER BANKS IN 101 LEADING
cmES
etWlHa ClDOI..URS
12
10
~
8
IIIWOH. . . ""'-"',
12
r-i
J "'"- .".
J
~
us. oatr 08UGAT1ONS
e
-
~/~
4
GOVERNMENT SECURITY MARKET
10
8
("""'~i"'-""
-
8
4
OTHER SECURmES
2.
o
l.OANS TO nFO<VIS
o
ANODEALER'
·34
1938
1936
Prices of wheat, which had advanced sharply early in December and continued at tb e
higher level during the rest of the month, declined considerably in the first half of J anu~rY·
Smaller decreases occurred in some other commodities, including hides, tin, and zinc. PrIeSS
of most other basic commodities, such as cotton, wool, lead, and steel scrap. showed lit e
change.
1937
1938
1939
Wednesday figures for reporting member banks in
101 leading cities. September 6. 1984. to January
10. 1940. Commercial loans. which Include .Industrial and agricultural loans. represent prior to
May 19. 1987. so-called "Other loans" as then
reported.
Prices of United States Government securities continued to advance during December
and were steady during the first two weeks of January.
BANK CREDIT
Total loans and investments of reporting member banks in 101 leading cities decljne~
in the four weeks ending January 10, following an increase during the first half of Decemb~ .
These changes reHected largely a temporary rise and a subsequent decline in loans to securt!
brokers and dealers in connection with the Government's flotation of a new issue of bon e;
Total holdings of United States (;{)vernment obligations at city banks showed little n
change during the period.
As a result chiefly of further increases in gold stocks as well as the post·holiday !et~
of currency from circulation, excess reserves of member hanks increased sharply In
four weeks ending January 10.
@FedFRASER