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MONTHLY BUSINESS REVIEW of the FEDERAL RESERVE BAN K o f =- This copy is r eleased for publication in afternoon papel'S- Dallas, Texas, February 1, 1941 Volume 25, No. 12 = J an. 3 1 BUSINESS Augmented by a heavy Christmas trade, the dollar value of merchandise sold at reporting department stores in the Eleventh District during December was the highest for any month of record, exceeding that in December, 1939, by 4 per cent. On a seasonally adjusted basis, sales showed little change from the high level attained in November. This bank's adjusted index of sales averaged 116 per cent of the 1923-1925 average in December, which compares with 117 per cent in November and 113 per cent in the corresponding month a year earlier. An increase in and a wider distribution of income resulting from larger business earnings, higher fado. income and increased employment and payrolls in business and industry were reflected in a further expansion in consumer buying in this district during 1940. Virtually all branches of retail trade experienced an increase in sales over those in 1939. Department store trade at reporting establishments averaged 5 per cent greater than in 1939 and the aggregate dollar value of sales closely approximated that in 1929. Consumer purchases at independent retail outlets other than department stores also rose by about 5 per cent during the past year. In Texas the 6 per cent increase was fairly general among the 33 reporting lines of trade, with the most outstanding expansion occurring in the distribution of automobiles and automobile accessories. It is significant, moreover, that the gain in sales over those in 1939 was widely distributed among rural as well as urban centers. Sales at independent retail establishments in Oklahoma and New Mexico during 1940 were about 2 per cent higher than in the preceding year and in Arizona they were up 5 per cent. In New Mexico, sales of nondurable goods, including wearing apparel and foods, showed the most pronounced gain over the year; whereas, in Oklahoma and Arizona the distribution of durable goods, such as motor vehicles, furniture, and building materials, evidenced the largest increase as compared with 1939. Department stores in this district continued to follow conservative inventory policies during 1940. Stocks at reporting firms during 1940 averaged higher than those in 1939, but the increase in stocks was smaller than that in sales with the result that stocks were turned over at a slightly faster rate in 1940 than in the preceding year. Although the value of stocks at the end of 1940 was 3 per cent greater than a year earlier, a portion of this gain may be accounted for by higher retail prices, which, according to Fairchild Publications, were 2 per cent higher in December, 1940, than a year earlier. NOTICE On December 31, 1940, a Special Report was submitted to the Congress by the Board of Governors of the Federal Reserve System, the Presidents of the Federal Reserve banks, and the Federal Advisory Council. Copies of this report may be obtained from R. R. Gilbert, President, Federal Reserve Bank of Dallas. DISTRICT SUMMARY Industrial production in the Eleventh Distric~ expan?ed further in December and consumer purchases at retail estabhshIllents increased seasonally. Employment and payrolls continued to expand as a result of the increased business activity and higher industrial output. Distribution of merchandise through reporting department stores was at an all-time peak in December and sales during the first half of January, 1941, were Considerably higher than in the corresponding period last year. December business at wholesale firms in six lines of trade exceeded that of a year ago by 10 per cent. The value of conStruction contracts awarded during the past month was more than double that in December, 1939, and exceeded the previous record established in June, 1940, by 12 per cent. Petroleum production decreased somewhat in December, but refinery operations continued at the November rate, which exceeded that in December last year by a wide margin. Total loans at weekly reporting member banks increased further in December and at the year-end they were $32,000,000 in excess of those ~ year earlier. The outlook for the agricultural and livestock Industries continues favorable, with the moisture supply generaUy good throughout the district. During 1940, industrial activity in this district ~howed a ~Urther increase, reflecting in a large measure the direct and Indirect effects of the National Defense Program. Between the Illiddle of June and the end of December, National Defense Contracts totaling nearly $200,000,000 were awarded in Texas and that total was augmented by awards in other sections of the district. A large proportion of the total was for t.he c?n~truction of defense projects, such as army camps, shlpbulldtng yards, airports and air training bases, housing facilities and Illa n ufacturing plants. This huge construction program has created a heavy demand for various types of building materials produced or fabricated in this district. Contracts have also been awarded for a large variety of other products, the prodUCtion of which has greatly increased the operating schedules 0,£ ll1any manufacturing plants and in some instances has necesSltated the construction of additional plant facilities. The general . ' 1 activity h as been accomparue . d by a . Increase in ind ustna rise in employment and payrolls and in business. Likewise, the expansion of industrial production in the United States has ~csulted in a stronger demand for many commodities produced In this district, particularly some agricultural and livestock Pr.oducts. It should be noted, however, that the rise in industhrlal activity in tlus district has been unevenly distributed and t at it has been accompanied by some unfavorable developIII f ents, including a marked reduction in the foreign demand Or Some agricultural commodities, especially cotton, and SlllaUer exports of petroleum and petroleum products. Dallas DEPARTMENT ~ <tNT 120 110 100 90 80 70 00 !>O STORE SALES ELEVENTH AND STOCKS rEDERAL RESERVE DI STRICT ptR ctNT 130 1 1--I1--I---1---+----I---+--+--I---I--+-+-H 120 f~ - I - 1""- I IN DC'" 1 '\'AA, II ""_""1 I YV\ P.v[\~,\ ,", , ~ -V '.i- I ADJUSTtD ' DA SC""'NAi. Y""lATlDN AYCR""". IOD ~~- A~-,\ ;::rl A I I W V. VVV I .•~ ~,J IN-'~ . p.I~ ._ - . 1 ej '-''Yv, -./lJ../rl'lA:...l,f,N-.:....J--+--t-----If--i--I 110 00 90 ' 80 ~V' si ,";....,~\"-\/...~'\./i,~\r 70 " ~_ ,..H \,,"~~v~ 00 OCKS '\;~ I \ '" I..... v~ I 1- -+---1--1--11--1,----1---+--+--+--+--1---1 40 1 30 ~11I09--.J~'""'--.J~I03I---1-I.,....,."...J.-I:::...,...J.-_::::-:-.J.....,I... =-=-.L..,,":::-30.L.:,.,,=-L::_::-L-:::",.::-ll-:::,_:;!\J 30 4 0 This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW The rate of collections on accounts receivable at depart- cent, respectively, during the past year, which is indi~a:ive ment stores in this district during 1940 showed little change of the continued expansion in business and industrial actlvlt~ from that recorded in each of the preceding four years. During On a seasonally adjusted basis, the number of persons employe the past year collections averaged about 40 per cent monthly in non-agricultural businesses during December, 1940, was on regular accounts and 15 per cent on instalment accounts. above that at any time since the speculative boom in 1937, and payrolls were at the highest level in more than ten year Reflecting the heavy demand at retail establishments during A large majority of the State's manufacturing trades repor: eh the past year, the distribution of merchandise through whole- increases in both employment and payrolls during 1940, WIt sale channels exceeded that of a year earlier by about 7 per the largest gains occurring at cotton textile mills and at tho~e cent. Business at representative firms in eight lines of trade establishments producing food and forest products, m.en 5 was generally active throughout 1940 with unusually heavy work clothing, stone and clay products, and structural Iron sales taking place toward the latter part of the year. This and steel. In non-manufacturing lines sizable increases occurr~d development apparently reflects a heavier year-end trade than at wholesale and retail trade establishments, and at publIc had been anticipated by retailers, thereby necessitating sub- utilities and power laundries. Employment at petroleum restantial fill-in orders to replenish depleted inventories. In fineries declined moderately over the year, but payrolls at the~e comparison with 1939, the distribution of surgical equipment plants expanded by about 4 per cent. Preliminary reports in.d lwas the only reporting line of trade to experience a decline. cate that the number of workers employed in manufactu~mg Sales of tobacco and tobacco products closely approximated and extractive industries and at trade and service establIshthose of a year ago, and the distribution of groceries and drugs, ments in Texas increased by more than 100,000 between including liquors, averaged about 7 per cent higher than in January and December, 1940. 1939. The business of automotive supply firms expanded The number of commer&ial failures in the Eleventh DistriCt sharply and showed the most pronounced increase over 1939 was 3 per cent smaller in 1940 than in 1939, but liabilities of any reporting line of trade. The distribution of other duradefaulting firms showed a further marked increase, the t.o.tal ble goods, including electrical supplies, hardware, and machinbeing nearly twice that in 1939. The unfavorable liablh:y ery, reflected increases over 1939, ranging from 3 to 10 per record is accounted for by the default of two large industrial cent. concerns during the year. According to Dun and Bradstreet, Following a substantial increase in 1939, employment and there were 313 failures in 1940 having an aggregate indebted payrolls in Texas rose further by about 5 per cent and 10 per ness of $8,4 58,000 . The latter figure is the largest record~ in seven years, but is smaller than liabilities of commerCial WHOLESALE AND RETAIL TRADE STATISTICS failures during any of the fourteen years from 192 0 to 1933 , Percentage ohange in: -Ratio Deo. oolleotions Net sales Stocks· to acoounts outstand· inclusive. ing Dccember 1 r Jan. 1 to Dco., 1940 from : Deo., 1940 from AGRICULTURE Nov., Deo. 31, 1940 Dec., Nov., Doo., Instal· from 1939 1940 1939 1940 1939 Regular Retail trade: ment Widespread rains in the Eleventh District during recent Department stores: weeks have provided good surface and subsoil seasons and - 20 41 Total 11th Dist .. +4 +53 16 +5 +3 -21 44 17 Dallll8 .......... +3 +48 +5 +3 improved considerably the general outlook for the agricultu.r a1 8O - 19 Fort Worth . . .. . . +7 35 18 +4 t 46 - 16 40 Houston .. . ...... +3 +5 +2 and livestock industries. In some areas, however, exceSSive - 15 43 San Antonio ..... +9 +20 11 +41 +10 rainfall and high winds have caused considerable damage to - 9 - 21 41 Othsr cities .. . . .. +2 19 + 62 +1 Independent stores:t growing crops and delayed the preparation of land for 1941 Amon . .. ....... + 1 + 5 crops. Following a very slow start, due to poor moisture New Mexico. . •.. + 5 . . .. + 2 +26 + 3 Oklahoma.. .. ... + 7 conditions, the Texas wheat crop has shown a noticeable recoVTelll8.... .. ..... + 4 +30 + 6 ery since last October, and the outlook is for a better-t~~n Wholesale trade:t Maohinery, eqp't & average crop in 1941. On December 1, 1940, the condlt!o~ au pplies (eleept 24 eleotrical).. .... . +12 - 18 +10 +10 + 5 of wheat was placed by the Department of Agriculture at 6 Drug. (inol.liqu'rs) +12 +12 + 8 +16 - 1 80 per cent of normal, which compares with an average of 4 7 111 Electrical supplies. + 8 +20 + 3 87 Grocerie. .. ...... . +5 -7 +7 +5 - 5 per cent on that date last year and a 1928-1937 average 74 Hardware . ....... +21 - 13 + 7 + 6 - 5 93 Tob.ooo&prod's .. + 2 - 2 t - 2 - 3 December 1 condition of 73 per cent, The conditiOn of t~e ·Stooks at olose of month. tLc88 than oO&-half of one par oont. tCompilod by United crop has apparently improved further during the past .Sl~ States Buroau of Census. weeks. The acreage seeded to winter wheat in Texas, whic had been reduced sharply in 1938, is gradually returning to a INDEXES OF DEPARTMENT STORE SALES AND STOCKS (1923-25.verage = lOO) more normal level. In 1939 the total acreage planted to wheit With scll80nsl adjustment Without sell80nal adjustment was 8 per cent higher than a year earlier and seedings last fa , Sales-Doo. Stooks- Deo. Stocks-Dco. Sales-Doo. amounting to 4,360,000 acres, were 3 per cent higher than 1940 1939 1940 1939 1940 1939 1940 1939 in 1939 and only 6 per cent under the 1928-1937 aver~ge, 201 195 62 60 113 71 69 Total Eleventh Dist . . 116 72 127 69 208 204 63 61 Dallll8 .. . ...... ..... 130 The prospects for wheat production in Oklahoma have lIke130 73 73 248 229 60 60 Fort Worth ...... ... . 140 52 49 51 48 116 190 191 Bouston .... ........ 116 wise improved considerably over the past two months. . 107 63 50 178 167 44 San Antonio •....... . 115 56 Weather conditions during the latter part of December Id COMMERCIAL FAILURES IN THE ELEVENTH DISTRICT south Texas were unfavorable to commercial truck crops ad (Liabilities in thousands of dollars) citrus groves in that area. Excessive rainfall, strong win s r - - -1940- - - v - -1930------v------1938------. Numher Liabilities Number Liabilities Number Liabilities and hail retarded the growth of crops, delayed harvesting oper23 $ 286 35 $ 754 25 S 217 January .. .. ....... . .... . ations and caused considerable damage to some vegetable croPd 23 200 34 333 25 245 February .... . .. . ...... .. 22 167 85 368 19 305 Maroh ........ . . .. . .. .. . particularly carrots, cauliflower, English peas, potatoes an 23 215 31 414 28 254 24 316 26 370 21 414 tf:~l::: : : : ::::: : : ::: :: :: spinach, The indicated production of grapefruit and or~nges 18 166 30 265 15 160 June .... . . .. .. ...... .. .. 38 2,320 24 223 14 120 was likewise reduced, as a result of strong winds caU~!Ilg : July ....... . .... ...... .. 34 384 23 340 19 197 August .. . . ..... .. .... . .. substantial volume of fruit to fall from trees. It is signdicda n 23 159 22· 250· 16 203 September ... . . ... ...... . as 720 23· 657· 2l 316 Ootober .. . ........ .. .. .. to note, however, that despite the damage that occurre to 26 3, \45 24 293 36 a38 November .. . ..... . . . .. .. truck and citrus crops during December, the indicated produl' 26 380 17 243 16 95 December . ...... .... ... . tion of virtually all crops affected still compares favora~ 'f Total. . ... .. n ....... 313 $8,458 324· U.419· 255 $2,873 with the final harvests in 1940. On January 1 the productlOll ·Revised. 2 d ° d :t MONTHLY BUSINESS REVIEW forecast for grapefruit and oranges was placed at 14,400,000 boxes and 2,850,000 boxes, respectively, which compares with a 1940 harvest of 14,200,000 boxes of grapefruit and 2,360,000 boxes of oranges. The condition of livestock ranges in the Eleventh District showed less than the usual seasonal decline in December and Continued above the average condition for that season of the y~ar .. Heavy and frequent rains in the eastern portion of the dlstnct caused a further deterioration in range feeds and preVented grazing on grain pastures. On the other hand, range weeds and grasses in the western portion of the district are making good growth and have furnished considerable grazing. Prospects are favorable for early spring grasses throughout mOst of the district. Although the prolonged period of wet weather has caused some shrinkage in cattle weights, animals afre ~till in good flesh and losses have been light. Supplemental ceding has been resorted to in those areas where excessive rainfall has caused extensive grass-rot. Sheep continue in better:han-average condition, and prospects are good for another arge lamb crop in 1941. Physical conditions were generally favorable to the agricultural and livestock industries in the Eleventh District during 1940. Per acre yields of virtually all major crops were above the ten-year, 1929-1938, average, and in a majority of cases they exceed the 1939 yields. Moreover, the production of most crops was in excess of that in the preceding year and the tenCROP PRODUCTION- tin thousands of units) ,,---- - - Telns - - - - v - - Eleventh Distriot '----., 1929·1988 1929·1938 Crop Unit 1940 1039 average 1040 1980 average Cotton B I 3 28' 2 84 3 876 4 863 Cotto .. . . ...... a es ,u ,6 , , 4,421 5,650 C nseed ..... . Tons 1,463 1.268 1.726 2,1 66 1,060 2,514 WOhn . . ..... . . . .. Bushels 90,324 73,876 75,556 157,546 126,744 132,073 Oat at (all) . . . .. . Bushels 20,355 20,032 32,958 88,226 94,057 83,483 Il Bushels 37,1 25 28,750 35.290 72.327 52.896 62.858 arr oy .. . . . .. " . Bushels 3.825 2.055 2,445 11 ,053 10.300 4.885 15.172 9.770 16,005t 15.172t 0,770t G c~ ... . ........ Bushels 16.005 TralO sorghums .. Bushels 46,397 38,115 45,412 67,587 53, 148 62,163 W~~\hay....... Tons 1,341 1,022 745 3,510 2,930 2,487 l'eanutsay . . . . . . .. Tons 273 257 220 839 770 602 hi h ....... . . Pounds 166,675 129,480 77,449 204,055 151,190 00,750 S s Potatoes .. . . Bushels 3,200 2,666 3,343 8,786 7,716 9,071 S: eet potatoes ... Bushels 4,335 3,780 4,600 10,023 11,660 12,580 Or ee sorghums.. Tons 2,475 1,752 752 3,632 2,430 1,203 Granges .... " . .. Boxes 2,075 2,360 047 2,075t 2,360t 047t l'e~sfruit . . .... . Boxes 15.000 14,200 5,020 15,000t 14,200t 5,020t ..... . ... Pounds 41,000 19,000 24,470 66,604 36,104 41,262 fOr t~ExcePt where otherwise indicated, Eleventh District figures represent the combined totals Ok! he five states wholly or partially includod in the Eleventh District; i.e., Texas, Louisiana , tTexas only. a oma, New Mexico, and Arizona. f··· ········· CASH FARM INCOME FROM THE SALE OF PRINCIPAL FARM PRODUCTS AND GOVERNMENT BENEFIT PAYMENTS (In thousands of dollars) , . - - -October, 1040---., Receipts from: Govern· ,r--- - - 'Total receipts , October Ootober J an. 1 to Oct. 31 "---- - -----,, ment Crops Livestock' payments 1040 1939 1040 1939 Ariz • 2,045 3,400 322 6,667 8,310 44,144 43,087 Lo "on .. . .. .. Ne~8Iana: .... . 12,725 2,090 2,271 17,086 24,103 86,538 98,780 11,605 177 13,887 ~ (10,148 41,032 37,522 Oklah~eXlco .. . 2,015 18,380 0,600 1,475 29,455 ~~ 23,446 160,520 150,561 Texns .~~:: : : : 71,186 33,360 10,546 115,002 . 76,083 466,781 440,236 Total. . .. . 107,251 60,145 14,701 182,187 142,000 700,865 'Includes receipts from the salo of livestook and livestook products. SOURCE: Unitod Staton Department of Agrioulture. LIVESTOCK RECEIPTS (Number) ,,--- -Fort Worth- - - - v - - - - San Antonio----... Deo. DeD. Nov. Deo. Dec. Nov. 1040 1030 1940 1040 19aO 1940 42,181 34,062 47,108 12,720 12,401 16,066 27,565 23,440 42,722 23,304 21,212 25,555 58,867 31,600 35,504 13,500 18,149 13,650 28,738 26,867 44,654 4,209 3,701 4,446 ( r 780,045 COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight) _____Fort Worth----v---- San Antonio----... Dec. Dec. Nov. Dec. Dec. Nov. 1040 1030 1940 1040 1080 1040 Ileef steers $ 9.50 $10 .50 $11 .00 $ 0. 75 $ 0.00 StoCk .. .. ....... .. .. $11 .00 0.75 8.50 0.75 7.50 7. 25 7.50 lleife:; :~dera 10.00 10.50 12.50 10.25 11 .00 Ilutoh yearlings . ... . 12.00 Calve er oows . . ... . .. .. . . 6.75 6.75 6.50 6.50 5.50 6. 15 0.00 8.H 0.00 0.25 8.00 9.00 6.85 6.85 6.80 6.50 6.15 6.50 8. 75 8.00 9.00 8.00 8.00 8. 00 ...:...... ,. ~:~:.:: : : : : : :: :::: :: :~ 3 year average, the principal exceptions being the smaller-thanaverage harvests of wheat and cotton, the district's two principal cash crops, as a result of reduced acreages under Government allotment programs, However, production of wheat closely approximated that in 1939 and the cotton harvest was 8 per cent greater. The cotton acreage harvested in Texas during 1940 was about the same as that in 1939 but 4,060,000 acres less than the 1929-1938 average. Although the decline from the average cotton acreage harvested was partially offset by increases in the acreages of other crops harvested in Texas, the total of 25,844,000 acres was still 2,500,000 acres less than the ten-year average. Total acreage harvested during 1940 in states partially included in this district showed comparatively little deviation from that of a year earlier or the ten-year average. Prices received by Texas farmers for most of their farm products during 1940 were lower than in the preceding year, but the recession in prices was more than offset by the increased production. As a consequence, the total value of crop production, which is estimated by the Department of Agriculture at about $367,000,000, was $48,500,000, or 15 per cent, greater than in 1939. The significant feature of the expansion in the value of crops produced in 1940 is that two-thirds of the increase was in cash crops, which indicates that cash income of farmers from the sale of agricultural commodities will probably exceed the 1939 receipts from that source, which amounted to $424,000,000 in the five states wholly or partially included in the Eleventh District. During the first ten months of 1940, cash receipts from the sale of crops averaged 6 per cent higher than in the corresponding period of 1939. The livestock industry in this district showed a further growth during the past year. The 1940 calf crop was large and the lamb crop exceeded the previous maximum by about 6 per cent. Production of wool was likewise at an all-time peak. In Texas, average prices received for range animals during the year were above those in 1939, and although shipments of cattle and calves from this State were apparently somewhat smaller than in the preceding year, due in part to a disposition on the part of farmers and ranchmen to increase the stock of animals on farms and ranches, marketings of sheep and lambs exceeded those in 1939 by about 10 per cent, Prices of wool and mohair were strengthened during 1940 by a heavy demand created in part by Governmental purchases for defense purposes, and ranchmen are reported to have disposed of the record growth at considerably higher prices than those obtaining in 1939. Cash income to farmers in the Eleventh District from the sale of livestock and livestock products during 1940 is expected to exceed the 1939 peak of $405,000,000 by about 3 per cent. Livestock prices have shown considerable strength in recent weeks. Hog prices, which had declined by less than the usual seasonal amount during the final quarter of 1940, increased sharply on the Fort Worth market in the initial two weeks of the new year and at mid-January they were at the highest level since October, 1938. The seasonal advance last fall in prices of slaughter steers has been well maintained, with some grades of animals showing a further net gain in prices. Lamb prices have followed a moderate upward trend over the past few months. FINANCE Significant developments that occurred in the field of finance in this district during 1940 include a further marked expansion in ballk loans and deposits, a continued rise in the volume of funds for which there is no effective demand, an increase in debits to individual accounts, and a subsantial gain in money in circulation. Following a seasonal contraction during the first half of MONTHLY BUSINESS REVIEW 4 the year, total loans at weekly reporting member banks in this district increased during the subsequent six months at a much faster rate than is ordinarily the case in that period; as a result, the margin of gain over the preceding year widened gradually from month to month and amounted to $32,000,000 at the year-end. The expansion in loans during 1940 represented chiefly increased demand for funds from commerce, industry and agriculture; however, personal and instalment loans advanced somewhat and loans to brokers and dealers in securities rose by about $2,000,000. Total loans of $319,000,000 on December 31, 1940, were the highest in ten years. In contrast with the substantial net increase in loans, investments of reporting banks showed noticeable variations during the course of the year with respect to both the total amount of securities held and the distribution of holdings among the various types of securities, but total holdings of $262,000,000 on December 31, 1940, were only slightly larger than those at the close of 1939. Over the past five years security holdings at reporting banks in this district have fluctuated mostly between $250,000,000 and $300,000,000; whereas, investments at reporting banks in 101 leading cities of the United States increased about $3,148,000,000 during that period. Over twothirds of the latter gain was at New York City banks, where the volume of funds redeposited by interior banks has shown a marked increase during the past few years. Despite the small increase in investments at reporting banks in this district during 1940, total loans and investments at the year-end were at an all-time peak, amounting to slightly more than $580,000,000 and exceeding the total at the end of 1939 by rate than in the preceding year. A peak of nearly $90,000,000 was reached during the first half of July, and while a net decline of $6,000,000 occurred in daily average excess reserves during the remainder of the year, a substantial portion of this CONDITION OF THE FEDERAL RESERVE BANK (In tbousandB of dollan) Jan . 15, Jan. 15, 19U 1940 $256,177 Total cash reserves . ..... . .. .. . . . . ......... . ..... . $297,081 4 12 Disoounts for member banks ....... . ... . .. ... ... . . . 18 151 Other bills disoounted . . ...... ... . .. . .. .. . . .. .... . . 278 487 Industrial advances .. ... .... . . .. . . .... . . . ...... . . . 86,835 94,302 United States Government securities . .. . . . . .. .... . . . 87,143 95,004 Total earning assets . . .. . . .. ........ . . . .. .. ..... . . 244,118 222,741 Member bank reserve depcsits ...... . ... .. . ... .. .. . 81,386 95,119 Federal Reserve notes in actual circulation . . .. .. . .. . CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES (In tboueands of dollars) Jan . 8, Jan. 10, Dec. 11, 1941 1040 1040 Totallonns and investments. . . . . . . . . . . . . . . . . . . . . . . $582,364 $548,172 $580,037 Total loans . ... ..... . .............. .. . .. .. ..... .. 315,695 288,065 308,053 Commereial, industrial and agricultural loans . ..... 216,133 188,170 209,133 Open markct paper . . .... . . . .... . . . .. . . ... ... . .. 1,517 1,740 1,611 LOans to brokers and dealers in securities . . . . . . . . . . 5,033 8,033 4,004 Other loans for purcbasing or carrying securities. ... 12,640 14,145 13,337 Real estate loans. . .. . ...... .. . . . . . . .... . ..... . . 23,208 22,410 23,833 Xl\a~:h~ ~ann~:"", ::::::::::: : :: : ~:: :::: :: :: : :: MEMBER BANKS IN El.CVENTH r eOtR AL AU t RY! LEADING 56,~~i 54,m 153,132 171,245 53,590 41,087 57,479 58,152 138,522 145,840 261,903 277,(92 450,404 519,015 137,122 135,264 82,680 25,479 270,059 274,807 None None States Government, Isss GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS (Avorage of daily figures-in thousands cf dollars) Combined total Resorve city banks Country banks~ CITIES DISTRICT ..,a.UONS 01 OOl1.ARS Gross demand """ '100 I-+----I----+ 50,~~~ United States Government direct obligations. . .. .. ... 167,218 Obligations fully guaranteed by United Stntes Govt . . 40,423 Other Becurities . ....... . ..... . .. . ... . .. . ......... 50,028 Reserves with Federal Reserve Bank. .. . . .. .. .. . . . . . 149,204 Balances with domestic banks . ... . . . . . .. . . . . . . . . . . . 282,598 Demand deposito-adjusted".. . . . ... ... ... ... . .. .. 520,377 Time deposIts . . .. . . . . .... .. . ... . ... ... ..... . .. . .. 135,936 United States Government deposits . .. . . . . . . . . .• . . .. 20,000 Interbank deposits ..... .. . . . . . . . . . . . . . . . . . . . . . . . . . 279,592 Borrowings from Federal Reserve Bank. " . . . . . . . . . . None "Includes all demand deposits other than interbank and United oasb items reported as on hand or in process of ccllection. $33,100,000. REPORTING Deo.15, 19(0 $294,542 17 28 82 84,923 85,050 242,800 95,257 - - - - J - - - + - - - I - - - +- -__i 700 1--f---_t---+-~--i---::r--''---t_--+----i ClOO ",c= =----j---'-+- ---i >oo Deeember, December, August, September, October, November, December, 1938 .. .. ... . .. $1,180,070 1939 . . . ....... 1,3 44,386 1940 .. . . .. . , . . 1,315,554 1040 . .. . ..... . 1,346,840 1940 . . . . . . .. .. 1,408,515 1040 .. . . .... .. 1,409,805 1040 ... . ... .. . 1,474,217 ~I-~~~_t---+-----J------_r------t_----_r---__i~ 200 '00 ':'-U.""V .LL1.......... Deposits at all member banks in this district showed a further pronounced rise during 1940. The expansion represented chiefly increases in adjusted demand deposits, which include principally individual, corporate and municipal deposits. The daily average of combined gross demand and time deposits recorded new highs in each of the final three months of 1940 and the average of $1,712,000,000 in December was $133,000,000 greater than in the closing month of 1939. Since January, 1936, daily average deposits at member banks in this district have risen by nearly $600,000,000. As a result of the sharp expansion in deposits at member banks during 1940, which exceeded the increase in loans and investments, banks made substantial additions to their reserves at the Federal Reserve Bank and also increased their balances with other domestic commercial banks. The expansion in reserve balances was especially pronounced during the final quarter of the year, when daily average reserves registered new highs in each succeeding month. Moreover, the trend continued upward during the first two weeks of the new year; on January 15, 1941, reserves totaled $244,000,000, which was a newall-time peak. Excess reserves of member banks in this district likewise increased during 1940, though at a slower Abilene .... . . .. . Austin.. ........ Beaumont. . .... . Coraioana . . . . .. . Dallas . . .. . .. . . . E\ Paso... . ..... Fort Worth. . . .. . Galveston . .. .. .. Houston ......... Port Arthur . . . . . Roswell. . .... ... San Antonio . .. . . ~~~~~rf.c:,r:.:. . ::: Tueson .. .. .. ... . Tyalceor...... ... ...... . . . W. Wiehita Falls. . .. Time $223,336 234,145 234,123 233,023 233,323 233,412 237,308 Gross demand 665,072 777,031 708,031 783,742 814,555 842,570 841,903 Groes demand 524,508 560,455 547,523 502,604 503,000 627,319 632,314 Time 123,655 130,290 128,003 128,161 128,295 128,213 131,622 Time $ 99,081 103,846 105,100 104,862 105,028 105,199 105,680 DEBITS TO INDIVIDUAL ACCOUNTS (In tboueands of dollars) Petg. ehange from Total year December 'December November: , potg.ohango 1940 1030 1940 1940 1080 from 1989 $ 10,130 + 2. 1 + 1.5 105,389 102,845 + 2.5 43,050 + 9.5 +31.3 419,459 410,405 + 2.~ 28,285 + 5.8 + 3.7 291,177 278,706 + 4. 7 4,171 - 1.2 +17.5 42,032 39,780 + 5. 334,728 + 2.6 +19 .0 3,160,201 2,992,039 + 5.6 50,595 +41.0 +18 .9 386,009 340,032 +10.6 109,502 + 4.0 +24.7 1,004,297 973,830 + 3.1 32,932 +10.9 -14 .4 334,689 302,210 +10. 7 292,038 + 3.3 + 8.0 2,998,003 2,729,307 + 9.~ 10,005 - 1.1 + 5 .7 116,235 109,301 + 6. 0 5,744 + 1.9 - 18 .5 57,501 52,816 + 8. 84,077 + 7.1 + 9.3 880,588 830,718 + 6.7 5~:m +~:~ :j:~~J 13,120 13,215 10,207 17,521 ------ - .3 - 3.0 - 3.0 - 2. 0 + 1.4 + 0.0 +10.3 .4 5~~:t~~ 147,188 141,516 170,054 200.027 5~~::~~ :j:U 139,359 137,473 106,227 174,836 ------ ------ + 5.~ + 2' 8 + 2. +14.4 ----- Total. ... . $1,130,377 + 4. 0 +13.0 $11,096,263 110,400,230 + 0.7 "Includes the figures of two banks in Texarkana, Arkansas, located in tbe Eigbth District. Beaument .... . . ........ . Dallas . .. ........ . ...... EI Paso . .... . ... . ....... Fort Worth .............. Galveston ........ .. ..... Houston ......... .. ...... Port Artbur . ......... . .. San Antonio ............. Shrevepert ....... .. . ... . Waco .. . . . ... . . ......... Wicbita Falls ...•... • .... All otbers . .. .•.. .. ... . .. Total. ....... .. . SAVINGS DEPOSITS December 31, 1940 Percentage ehanfe in ---., eavings deposits ~ Number of Number of Amount of , Nov.30, Dce.31, savings savin~s re~rting 1040 depoSits 1989 depositors anks + 2.6 10,038 $ 4,243,106 + 8.2 S + .8 90,825 20,025,933 8 .3 + 2.6 8,515,778 + .4 2 18,002 + .8 35,221 13,121,803 - 1.1 3 _ .1 4 18,456 12,167,580 + .3 + \.2 32,194,350 + 3 .0 76,238 10 + .6 5,770 3,302,757 + 6.1 2 + 1.0 18,134,227 22,069 .3 5 + .4 12,253,034 + 2.7 24,998 a _ 4.5 4,404,100 - 7.5 8,115 3 _ .02 7,048 3,648,437 - a.o 3 31,049,378 + 3.0 50,758 00 + .1 - - 115 378,33. Sl69,661,392 -+ 1.3 + .8 MONTHLY BUSINESS REVIEW Contraction was offset during the first half of January, when tOtal reserve balances showed a much greater increase than required reserves. Balances with correspondent banks in the United States averaged $488,000,000 during the first half of December, 1940, which was $13,000,000 greater than a year earlier. MEMBER BANK RESERVES tL[VCHTH rtDfI\AL. RtxRVt DISTRICT j-----r-----t-----t-----t-----t-----t-----t-----1~ j-----r-----t-----t-----t-----t-~~~~~t-----1 200 7m1-----l '0 Federal Reserves notes of this bank in actual circulation showed a seasonal decline during the first five months of 1940, reaching the low point of the year at $78,028,000 on May 24. During the remainder of the year, however, note circulation Shhi?Wed the largest gain in several years, with the result that t s bank's circulation reached an all-time peak at $98,400,000 On December 23. This figure was about $12,300,000 above the tnaximum circulation in 1939. The rise in the latter part of t~e year, which reflected in part seasonal factors, was intensified by the expansion in business and industry and shipments of Currency to army camps. Total earning assets of the Federal Reserve Bank of Dallas were reduced further by $7,900,000 during the year ended J~nuary 15, 1941. This decline represented chiefly a contraction in holdings of United States Government securities, and rhflects this bank's proportionate share of a net liquidation in t he.System's investment account. Discounts for member banks, w lch were completely liquidated early in 1940, showed a gradual upward trend until August 23, when total bills disc~unted amounted to $877,000. Loans to member banks declllled seasonally during the remainder of the year, however, and totaled only $12,000 on December 31, 1940. h Debits to individual accounts at banks in eighteen cities of ~ e Eleventh District increased seasonally in December to the bghest level of record for that month, and the total was only ~ OUt 4 per cent under the all-time peak recorded in October, b929 , when charges to depositors' accounts were augmented 1~ a heavy volume of security transactions. During the year 40, total debits averaged 7 per cent higher than in 1939, and the increase was well distributed among cities from which reports are obtained. INDUSTRY ( e Thhe value of construction contracts awarded in the Elev$~t District during December amounted to approximately r 2,500,000, which was the largest total for any month of /c ord . The figure reflects primarily sharply increased awards r the construction of National Defense and United States r ~Using Authority projects. The value of awards for nonteSI~ential building, which amounted to about one-half of the nOta, showed the most pronounced gain during the month; al~ve~theless, contracts let for residential building were at an b -tune peak and nearly three times the value of awards in ecetnber, 1939. IB 5 The awards for National Defense projects also had a marked effect upon construction activity for the year 1940. The total value of new projects initiated during the year amounted to about $271,000,000, which was 4 per cent greater than the previous maximum recorded in 1926 and nearly 40 per cent higher than in 1939. Although publicly-financed construction accounted for the major portion of the expansion over 1939, privately-financed building increased about 13 per cent, reflecting chiefly a substantial gain in contracts awarded for the erection of non-residential buildings. Publicly-financed construction during 1940 was nearly double that of a year ago, the gain extending to each of the several classes of construction work. Among the principal classes of building initiated during the past year, marked gains occurred in the construction of nonresidential building and of engineering projects, the latter classification including public works and public utilities construction. The value of contracts awarded for engineering projects was about 45 per cent greater than in 1939, reflecting increased awards for streets and highways, dams and reservoirs, water supply systems, railroads and airports. The value of non-residential building during 1940 was nearly 60 per cent larger than in 1939. This expansion was accounted for largely by increases in the construction of aircraft hangers, manufacturing buildings, and facilities at various army camps. In the residential field the number of projects upon which awards were let and the total floor space made available upon completion of the structures were approximately 25 per cent greater than in 1939; whereas, the value of all residential contracts awarded during the year was only 16 per cent greater than VALUE OF CONSTRUCTION CONTRACTS AWARDED (In thousand. of dollars) December Deoember Noveml>or Jan. 1 to 1040 1930 1040 1040 Eleventh Distriet-total. .42.516 17,603 22,500 271,487 Residential ..... .. .. . eo 13,037 4,762 7,636 07,014 All other ..... ..... ".... 29,470 12,841 14,864 174.473 United Statea· - total. ... '. 456,1 89 354,008 380,347 4.003,957 Residential. .. .. ... .. .. 159,275 88,681 152,838 1,506,944 206,014 265,417 227,500 All other . . .. .. ..... .. ". 2,407,013 ·37 stotea east of the Rocky Mountains. SOURCE: F. W. Dodge Corporation. Deo. 31 1939 100,110 83,43~ 115.676 3,550,543 1,334,272 2,216.271 BUILDING PERMITS Peroentage change Peroentaga valuation from Jan. 1 to Deo. 31, 1940 obanse v valuatIon No. Valuation v Deo.,1039 Nov.,1040 No. Valuation from 10aQ 44$ 74,855 +340 .8 +100 .0 311 $ 676,209 +17.1 244,614 +128.9 + 47 .5 54 883 2,504,179 -1.5 646,754 +134.4 - 12.3 100 2,878 7,363,000 + 2. 6 117 83,361 2.4 - 48.0 1,645 1,540,020 -10 . 2 160 247,070 + 38 .6 - 12 .0 2,393 8.002,630 +22.7 510 2,059,276 +375 .0 +331.0 7,727 16,220,813 26 3 . 134,050 - 16 .8 + 1.6 1,001 3,057,179 106 18.8 142 186,681 - 53.7 - 54 .2 2,050 4,850,672 -aU 121 40,054 - 61.8 - 82 .3 1,741 2,086,560 +45.3 260 3,155,628 + 62 .7 +191.2 5,537 24,253,888 - 4.4 126 40,852 - 28.6 - 30.4 2,308 1,127,851 - 1.4 442 004,055 + 05.7 - 58. 0 7,562 9,340,558 +10 .0 84 220,607 - 18 .1 - 40.0 2,018 4,816,403 - 17.0 27 80,867 + 41.1 - 21.3 837 2,562,082 +71 .3 32 1,047,176 +207 .6 545 2,345,402 t + 83 .1 Deoomber. 1940 Abilene . .... .. . Amarillo .... ... Austin .. ... .... Beaumont . . . . . . Corr,us Christi . . Dal as· . . ...... E\ Paso .. . . . . . . Fort Worth . .... Galveston .. . ... HOllston ... .... . Port Arthur .. .. San Antonio ... . Shrevoport . . . . . Waco ... . ... ... Wiohita Falls . .. - t ------ ----- ------ - - Total. . ... .. 2,343 SlO,075,800 +100.7 + 50.4 40.435 190,928,514 +U ·Inoludes Highland Park and Univorsity Park. tInoreaao over 1,000 per oentl PORTLAND CEMENT STATISTICS-TEXAS MILLS (In thousands of barrols) Produotion Shipmonts Stooks (end of montb) 1040 445 477 580 713 758 672 528 574 631 743 648 602 1030 673 571 400 720 772 537 667 485 685 704 478 547 1940 450 533 678 600 712 594 538 505 645 784 563 592 1039 628 545 607 665 686 644 535 582 585 568 554 518 .... .. . 7,376 7.888 7.383 7,207 January ..... ............ . Fobruary .. . ... .... . .. . . . Maroh . .. .. .. ..... ....... ¥nit·:::::,::·::::::: :::: July . . "' .... ...... . .... ... . . August .... .. ...... .. ... . September . ... ..... . ..... OOtober ... .. . ..... . . . .. . November .... ... . .... . . . Deoember . . .. ......... . ... Totol. ..... v 1940 906 850 762 775 821 808 883 862 848 807 882 802 1939 826 852 655 700 705 688 820 722 822 058 882 911 , MONTHLY BUSINESS REVIEW 6 in 1939. There was a marked decline in the value of apartment houses erected during the year, but this recession was more than offset by increases in the value of dormitories, onefamily dwellings and army barracks. The construction of onefamily dwellings that were placed on the "for sale" or "for rent" markets expanded sharply due in part to the construction of additional slum-clearance projects under the United States Housing Authority. Reports indicate that residential building costs in this district rose somewhat during 1940, reflecting the increased demand for building materials and labor as a result of defense activities. The valuation of permits issued for building projects within the corporate limits of fifteen principal cities in the Eleventh District increased further in 1940 to the highest level for any year since 1929, the total exceeding that in the preceding year by 5 per cent. The value of permits issued at nine of the reporting cities showed a gain over 1939, with the largest increases being recorded for Dallas, Galveston, Waco, Corpus Christi, and Wichita Falls. Although the value of permits issued at Houston during 1940 was moderately smaller than in 1939, the aggregate for that city accounted for more than one-fourth of the total value of permits issued at all reporting cities. CONSTRUCTION ELEVENTH MILLIONS Of DOLLARS 4() 30 CONTRACTS AWARDED FEDERAl.. RESERVE DISTRICT MILLIONS or I-+-I-+- I -~--~--~--~--~--~--~--~~-- OOI..L "RS 4() - ~ 20 Reflecting the expansion in building activities during 1940 the demand for lumber and cement was heavy, resulting in the maintenance of operations at mills producing those products at a comparatively high level. At Portland cement mills in Texas, production during the year closely approximated the record output in 1929 and shipments were moderately higher than the previous record movement established in 1939. Activity at lumber mills in this district was very irregular during the first half of 1940, with production and shipments averaging somewhat lower than in the corresponding period of 1939. In the second half of the year, however, operations increased noticeably due in part to the acceleration of demand for lumber incident to the National Defense Program. For the year as a whole, output of lumber was about the same as that in 1939, and shipments were 5 per cent greater. Mill stocks of lumber were reduced sharply during 1940. Daily average output of crude oil in the Eleventh District was curtailed further in December and was 13 per cent below that of a year ago; as a result of this contraction, petroleum production in the United States was fractionally smaller than in November and 5 per cent lower than in December, 1939. Refinery operations both in this district and in the nation as a whole showed little change over the month, but continued at a somewhat higher level than a year ago. Outstanding developments in the petroleum industry during 1940 include a further expansion in the production and refining of crude oil, increased drilling activity, a record demand for refined products, increased imports of crude petroleum and refin~d products, and a sharp curtailment of exports. Produc- tion of crude oil and refining operations in the United States were at an all-time peak and drilling activity was at the highest rate since 1937. In the Eleventh District operations were above those in 1939, but the rate of increase was much smaller than that elsewhere in the United States due principally to the resumption of more normal operations in Kansas, where activity had been curtailed sharply in 1939, and to the rapid development of fields in southern Louisiana, Indian~, Mississippi and Illinois. The expansion in imports of crude 011 and refined products into the United States during 1940, reflected chiefly increased takings of crude petroleum from Mexico and higher imports of residual fuel oil from Venezuela. Above-ground stocks of crude petroleum increased sharplY during the first six months of 1940, but since the beginnmg of July inventories have shown little net change, reflecting close alignment between the amount of petroleum produce and the amount utilized. d Notwithstanding a sha;p contraction during 1940 in shi Pments to foreign countries, total demand for the refine d products of petroleum was at an all-time high, exceeding the previous maximum recorded in 1939 by about 2 per c~nt. Exports declined about 30 per cent due chiefly to the clOSIng of European markets by military operations, but the increas:d demand in this country more than offset the contraction ,0 foreign buying. The domestic demand for virtually all productS was greater than in 1939, with pronounced increases occurring in the consumption of kerosene, heating and distilla;e fuels and wax. Although a record consumption of gasoline ,n the United States during the past year aided in reducing gas oline inventories, which had mounted sharply during the winter of 1939-1940, stocks are still heavy, being near the record high for this season of the year. The demand for residual fuel oils during 1940 was about 5 per cent higher than in the preceding year, reflecting the marked expansion in industrial production that occurred during the year. The existence of heavy inventories of gasoline throughout 1940 had a depressing effect upon the market of that pro~uct with the result that prices declined to the lowest level sm ce 1933. Prices of lubricants, which had increased considerably in the latter part of 1939, also declined in 1940 due largelY to the contraction in foreign demand. Posted prices for crude oil showed little change during the past ye;lr; nevertheless, the market was weak at ·times and reports indicate that some Mid-Continent crude moved at less-than-posted prices. Following a curtailment in the preceding two years, drilling activity in the Eleventh District, as measured by the numbed of wells completed, increased 6 per cent during 1940, an I completions in the United States rose 11 per cent to a leye only moderately below the peak recorded in 1937. Domestic consumption of raw cotton in the United States continued in record proportions during December. In contra.ji with a seasonal decline that is usual in December, cotton JTl.I activity was stepped up further during that month of the volume of cotton consumed totaling 775,500 bales, whll was 19 per cent greater than in December, 1939, and on Y fractionally below the all-time peak of 777,000 bales sumed in March, 1937. The Board of Governors' season a Y adjusted index of cotton consumption increased to 145 Pdr cent of the 1935-1939 average in December, which ex~ee s the previous peak established in November, 1940, by 10 pOInts. The output of cotton products during December was apparently well in excess of incoming orders; nevertheless, the backlog of unfilled orders remained in large volume, and a~ter the turn of the year, there was a resumption of heavy buyUlg· 191°h cOit MONTHLY BUSINESS REVIEW Prices of cotton goods have continued generally firm, with quOtations on some constructions showing a further advance. During 1940 consumption of cotton in the United States Was at a high rate; the total of cotton consumed during the twelve months amounted to more than 8,000,000 bales, which exceeds that for any calendar year of record. During the early months of the year, the rate of activity declined substantially from the high level prevailing in the latter part of 1939, but operations were expanded rapidly in the last half of the year when heavy Government buying of cotton goods for defense purposes coincided with an increased demand from commercial sources. Operations at cotton textile mills in Texas, which had been ~airly active during the first half of 1940, increased sharply I~ the final six months of the year, when the strong commer- Cial demand for products was augmented by heavy Governmental purchases. The volume of cotton consumed during 1940 ~as the highest in recent years, exceeding the amount utilized ill 1939 by nearly 35 per cent. Although the expansion in te~tile mill activity in Texas during the latter half of 1940 cOillcided with the increase at all such mills in the United States, the gain over 1939 for the country as a whole was mUch smaller than that at Texas mills. . In addition to the expanded operations in the cotton textile iIldUstry during 1940, the production of rayon in the United States established a new high and output of woolen materials whas especially heavy during the final quarter of the year when t e Government placed large orders for wool clothing for armed forces. Cotton textile mills continued to make heavy purchases of r~w Cotton during December. Stocks on hand at the close of t e year were 9 per cent greater than a month earlier and ~nly 2 per cent less than on December 31 , 1939. Based on the ecember, 1940, rate of consumption, mill stocks of cotton on Dec~mber 31 were equivalent to about two and one-third months' operations. At the close of 1940, stocks of cotton in public storage and compresses, the major portion of which represents Government loan stocks, were 3 per cent higher than on December 31, 1939. ( 1 In Contrast with the prevailing high rate of cotton mill ~Ctivity in the United States, foreign consumption of cotton I~ at a comparatively low level, due chiefly to military operatiOns and the loss of export markets. The Department of AgriJUlture reports that operating schedules at cotton mills in ~pan have been reduced sharply in an effort to bring production in line with sales, which are relatively small because of a Phor foreign demand. Operations at textile mills in most of t e Countries of Continental Europe have been curtailed due apparently to their inability to obtain raw cotton, and while actiVity at English mills has been fairly well sustained, cotton c~nsumption is somewhat smaller than a year ago. As a result o the curtailment in operations at foreign cotton mills together with increased competition from South American COUntries for the accessible world markets for raw cotton, eXpOrts of American cotton have been in small volume for ;everal months. Shipments during December amounted to only 07,400 bales and the . total for the first five months of the C . Urrent season aggregated only about 600,000 bales, which IS 80 per cent smaller than exports in the corresponding period o.f the preceding season and the smallest for any similar period Since 1873. 7 Foreign exports of cotton from the ports of Houston and Galveston during the first five months of the 1940-1941 season amounted to only 262,000 bales, or about one-seventh of those in the corresponding period of the preceding season. Tlus decrease was larger than that in total exports from the United States and reflects the small shipments to the Far East and the transportation difficulties in making direct shipments to Great Britain. The sharp reduction in foreign shipments of cotton from these ports has been offset in part by a 15 per cent increase in coastwise shipments; nevertheless, total movements through these ports during the five months ended December 31 were at a lower level than in any corresponding period for which data are available. CRUDE OIL PRODUCTION-(Barrels) December, 1040 Increase or decrease in daily average produotion from Dailyavg. , Total Dec., 1030 Nov., 1940 production produotion 181,923 + 12,812 + 5,253 5,030,600 North Texas ........... ..... . - 48,409 -11,722 236,506 7,331,700 West Texa.................. . - 115,007 -13,822 432,200 East Texa................. .. 13,401,000 -13,352 - 30,360 187,416 5,800,000 South Texas . . . ..... . ...... .. 11,612 234,444 - 1,528 7,267,750 Texas Coastal ......... .... .. . Total Texas ........ . New Mexico ................ . North Leuisiana ............. . 30,440,950 3,141,300 2,125,550 1,272,579 101,332 68,566 -201,666 - 7,784 810 Total Distriot.. ...... 44,716,800 1,442,477 -210,260 SOURCE: Estimated from American Petroleum Instituto weekly reports. -35,171 244 + 1,818 + -33,100 STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS ~--Texas---v--United States----... August 1 to Deoember 31 A¥gust 1 to Deoember 31 This season Last season ThiS season Last season Cottonseed received at mills 3,581,713 3,553,182 823,372 024,078 (tons) ..... .. ..... . ... .. ... 2,310,080 2,536,034 653,008 662,826 Cottonseed crushed (tons) ..... Cottonseed on hand Dec. 31 1,165,405 1,275,709 224,472 277,659 (tons) .................. . .. Produotion of produots: 780,468,443 737,717,158 188,241,761 Crude oil (pounds) ......... 200,000,847 1,030,026 1,137,074 300,062 308,645 Cako and moal (tons) ... . ... 643,644 576,780 171,486 160,079 Hulls (tons) ....... . ....... 611,415 628,750 148,701 161,145 Linters (running bales) .... . . Stooks on hand Deo. 31: 66,721,343 93,183,310 10,670,961 Crude oil (pounds) ......... 30,167,591 175,700 219,412 70,320 61,085 Cako and meal (tOilS) . ...... 172, 170 167,626 71,633 84,436 Hulls (tons) ............... 225,396 344,349 112,459 67,905 Lint~rs (runlling bales) .. .... SOURCE: Bureau of Census. COTTON 1040 January .... ... .. 12,827 February ........ 11,451 Maroh ...... .... 10,507 10,700 ~ril .. ....... ... ay ...... ...... 12,309 Juno ..... . ...... 10,759 July .... . . . . ... , 12,407 CONSUMPTION 1038 1030 10,378 8,737 0,785 8,064 10,961 10,551 0,240 0,356 11,182 10,622 10,355 10,248 0,182 10,731 AT TEXAS MILLS-Bales 1040 August .......... 15,213 Soptomber ... .. .. 16,206 Ootober . . ... . ... 15,772 November . .. .. . . 20,583 Deoomber ... . .. . 22,408 1080 11,062 11,115 12,149 12,800 11,049 1988 11,529 10,878 10,092 0,887 8,001 ------ Total. ...... 171,322 120,258 120,586 CONSUMPTION, STOCKS AND EXPORTS OF COTTON-(B.los) Deoember December November Au~ust 1 to December 31 ThiS season Last seoson 1940 1939 1940 Consumption at: 90,182 20,583 58,175 11,040 22,408 Texas mills ....... . ... · 3,584,017 3,310,143 744,088 650,123 775,472 Unitod States mills . .. .. U.S. stocke-cnd of month: 1,682,278 1,861,406 In oonsuming estab'mts. 1,833,864 Publio stg. & oompresses. 15,046,513 14,570,390 14,727,234 EX-lfurts from U. S. to: 51,850 307,650 053,508 162,873 10,564 niled Kingdom .. . . ... None None 300,364 67,451 None Franoo . . ... . .... ····· . None 243,201 None 08,761 None Italy ........ "......... None 18,992 None None None Germany .............. 143,368 44,878 708,608 169,825 42,120 Other Europo ........ . . 20,716 422,171 2,787 123,932 8,865 122,031 45,105 478,481 188,878 i~r~~h~~ ·oou·~t~iCs·.·. '. : : : 36,817 602,765 3,134,415 144,710 806,720 107,375 Total exports . . .... RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT THE PORTS OF HOUSTON AND GALVESTON-(Bales) Dooember Deoember November Au Rust 1 to Deoember 31 This season Last season 1040 10a9 1940 1,384,367 2,737,165 320,064 403,567 105,360 Receipts ............... .. 526,342 1,809,432 131,441 460,310 08,013 Exports . . .............. . 1,895,820 1,762,336 Stooke, end of month .... . 1,966,926 MONTHLY BUSINESS REVIEW I I FEBRUARY 1,1941 NATIONAL SUMMARY OF BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) INDUSTRIAL PRODUCTION ---, 140 ~ ptR CENT 140 130 120 100 /J 90 80 70 \ \ \ I 110 IV / k/ ) J I tl- 01M1 130 120 110 100 v 90 ,I so 70 60 60 1934 1935 1936 1937 1938 1939 1940 Index of physical volume of production, adjusted for seasonal variation, 1985-1989 average 100. By months, January, 1934 to December, 1940. = DEPARTMENT STORE SALES AND STOCKS PER can PER c£HT II 0 I 10 100 SA LES/, 0 80 70 ./"\.IV .......-....,. 60 rv V ~ J \,fi IV _1" ... I 00 90 so S10CICS - - - ' \ '-- ---./ --_/ ,~' r..,,"' 70 60 50 50 40 40 1934 '935 1936 .938 1937 BILLIONS A 4 ~V --- r---.. '''-.,./ ~ or DOL LAR; L 4 1935 1936 1937 1938 1939 1940 MONEY RATES IN NEW YORK CITY 4 Textile production, which in November had exceeded the previous record levels reached a yca r ago, continued at this high rate in December, not showing the usual seasonal decrease. At cotton and rayon mills, activity increased somewhat further and at wool textile mills output was sustained at peak rates. In the shoe industry, where output had been in reduced volume during the first ten months of the year, there was less than the usual seasonal decline in November and December and, on a seasonally adjusted basis, production was close to earlier peak levels. At mines bituminous coal production declined less than seasonally and anthracite production increased. Output of crude petroleum showed a reduction in December owing mainly to the factI that wells in Texas were closed for ten days as compared with nine days in November. Output 0 metals continued in large volume. Distribution of commodities to consumers increased more than seasonally in December. Depatt~ ment and variety store sales showed the customary sharp expansion during the Christmas seaso~ and sales at mail-order houses rose more than is usual at this time of year. Freight-car loadings showed a seasonal decline from November to December. Shipments of forest products and miscellaneous freight decreased less than seasonally, while ore loadings, which had been unusually large in November, declined sharply. WHOLESALE COMMODITY PRICES U. S. Department of Commerce estimates of the amount of income payments to individuals, adjusted for seasonal va riation. By months, January, 1984 to December, 1940. fl£Jt C( N1' Automobile production declined somewhat more than seasonally in December following an unusually large volume of output in November and October. Retail sales of new cars during the last quarter of 1940 were about one-fourth greater chan in the corresponding period last year a~d used car sales also were large. In the nonferrous metals industries activity increased further In December and output of lumber and cement showed less than the usual seasonal decline. 6 r 3 1934 ""til DISTRIBUTION PAYMENTS BILUONS OF DOt. l MI;$ 6 Volume of industrial production showed little change from November to December, although usually there is a decline at this season, and consequently the Board's adjusted index rose further by four points to 136 per cent of the 1935-39 avccage. Steel ingOt production was sustained at about 96 per cent of capacity. New orders for steel continued large, according to trade reports, and were equal to or slightly greater than production; consequently the volume of unfilled 0~dcr5 remained at about the peak level reached in November. In the first half of January steel output jncreased to around 98 per cent of capacity. Activity in the machinery, aircraft, and shipbuilding industries continued to increase sharply and working forces were expanded further. In these lin.es and in some others, such as wool textiles, unfilled orders are oxceptionally large, owing in the to the defense program. Value of construction contract awards, as reported by the F. W. Dodge Corporation, increased contraseasonally in December, reflecting further sharp increases in awards for defense construction and private nonresidential building. Contracts for private residential building declined by somewhat less than the usual seasonal amount. = 7 PRODUCTION 1940 1939 Indexes of value of sales and stocks, adjus'ted for seasonal variation, 1923-1925 average 100. By months, January, 1934 to December, 1940. INCOME Industrial actIvIty continued at a high rate in December and the first half of January and distribution of commodities to consumers was maintained in large volume. There was some incre;1.lC in wholesale commodity prices. pt A GtHT 4 Basic commodity prices generally increased from the middle of December to the middle 01 January, following little change during the preceding fou~ weeks. Currently these prices are sub' stantially above the level prevailing last summer. Increases in the past month were most marked {or foodstuffs, especially hogs, pork, lard, and cottonseed oil, but there were advances also in a nurnb~ of industrial materials, particularly pig iron, cotton, cotton goods, paint materials, and hides. s~e CS scrap prices, after increasing during most of the period, subsequently declined and lumber pClC also decreased somewhat from the sharply advanced peak reached in November. BANK CREDIT Total loans and investments at reporting member banks in 101 leading cities continued to in' crease substantially during the six weeks ending January 8, reflecting principally increases in holdingS of United States Government obligations at New York City banks. Commercial loans tO~e somewhat further while loans to New York security brokers and dealers, which had increased I~ December, subsequently declined somewhat. Excess reserves, after declining during the first half of December, have since increased to about $6,900,000,000. The increase reflected reductions in Treasury deposits with the Reser~e Banks, a continued inflow of gold, and since Christmas a seasonal return flow of currency frofll circulation. UNITED STATES GOVERNMENT SECURITY PRICES Prices of United States Government securities reacted somewhat after reaching record ~ig~ o levels early in December. Bonds of 1960-65 showed on January 8 a net decline of about 2% pOlni o 1935 1939 19 40 1934 1935 1936 '9~7 from the all-time peak of December 10 but subsequently fluctuated somewhat above this le'le~ For weeks ending January 6, 1984 to January The yield on this issue, which was 2.03 per cent at the peak in prices, was 2.16 per cent 0 11, 1941. January 14.