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This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS of feed. That it is unnecessary to incur this loss seems obvious, since by intensive cultural methods they have it in their power as a rule to increase the production of lint cotton per acre without sacrificing their home-grown supply of essential feedstuffs. The usual November lull in trade made its appearance, but the aggregate volume of business continued large, and optimism was the keynote of trade reports. However, the mortality rate among commercial enterprises, which has reflected an upward trend throughout the fall despite the large distribution of merchandise and good collections, seems to indicate the tendency of some firms to expand more rapidly than conditions warrant, and the injudicious extension of credit and pyramiding of liabilities over two or three seasons by other firms. This is another situation that seems to call for caution in the extension of credit. The district's oil production for November again set a new record by exceeding the previous month's output by 15 per cent and added to the already large overproduction. However, encouragement, especially as to prices, is found in reports that production at the Corsicana-Powell field has reached its peak and is now rapidly declining. Furthermore, the complete elimination of the proration policies by all crude oil purchasers has had a stimulating effect upon producers. Employment conditions in Texas as reported by the U. S. Department of Labor, appear favorable for virtually all kinds of workers. Skilled labor seems to be fully employed, the surplus which is released by anyone industry being readily absorbed in others. Although common labor is extensively employed, the supply exceeds the present requirements, but the excess is not as large as it has been during the winter season of recent years. CROP CONDITIONS This year's harvesting operations, which have been carried on under difficulty due to the excessive rains, are nearing completion. Fall plowing has made fair progress, but weather conditions have greatly retarded the work. However, an excellent season is in the ground, and the soil is in good condition for the completion of plowing operations as soon as favorable weather permits. A substantial reduction in this year's Texas wheat acreage was disclosed by the Department of Agriculture in its report issued on December 20.th. The area sown to wheat this year was 1,237,0.0.0. acres as compared to 1,695,0.0.0. acres last fall and 1,784,0.0.0. acres in the fall of 1921. For the past three years adverse weather conditions have prevailed during the seeding period. In 1921 and 1922 drouthy conditions prevented the proper germination of the seed and resulted in a poor stand. Seeding operations this fall were greatly delayed by excessive rl:!ins and less wheat was sown than was intended earlier in the fall. However, the condition of the growiI}g crop is exceptionally good, being 93 per cent as compared to 76 per cent last fall and 42 per cent in the fall of 1921. The stand is generally good this year and an unusual amount of volunteer wheat is reported. The picking of the Texas cotton crop (except in the northwest) has been practically completed. The December 1st report of the Department of Agricultures estimated the Texas crop at 4,290.,0.0.0. bales. On the basis of this estimate, the amount ginned prior to December 1st-3,919,485 bales-represents 91 per cent of this year's yield. Texas has already ginned almost 80.0.,0.0.0. more bales than the total 1922 production. However, the grade of this year's crop has been considerably below the grade of last year's crop. In the north and northwest snaps and bollies represent a larger percentage of the crop than usual, being as high as 50. per cent in some localities. Reports of government observers from the Rio Grande Valley are to the effect that the first shipments of tomatoes, peppers, and grape fruit have been moved. The acreage planted to spinach this year has been placed at 10.,315 acres, which is an increase of 1,635 acres over last year. The Texas commercial crop has been estimated to yield 3,356,0.0.0. bushels. Although the rains have caused some delay in transplanting, early estimates on the onion acreage indicate that it will exceed that of last year. Cotton Movements Decreased receipts and exports featured the movement of cotton through Houston and Galveston during November. Galveston receipts for November totaled 482,366 bales, as compared to 647,262 bales for October and 448,971 for November, 1922. Exports were 23 per cent smaller than in October, and 17 per cent smaller than in the corresponding month last year. Exports for this season, however, have exceeded those of last season by 12 per cent. Stocks at Galveston on November 30.th were approximately 22,0.0.0. bales larger than on that date last year. The MONTHLY REVIEW OF BUSINESS AN INDUSTRIAL CONDITIONS amount held in compresses and warehouses continues considerably smaller than a year ago. The net receipts at Houston for November amounted to 276,518 bales, as compared to 504,557 bales .for October and 268,519 bales for November, last year. Exports through the port of Houston for the first four months of this season were 43 per cent larger than for the corresponding period of last season. Both receipts and exports for this season at all United States ports are well above those of last season. Stocks on November 30th wer e 47,565 bales less than on that date last year. 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 IIIIIIIIIIIIIIIIIIIIIII~ 1 _ =:==_ :~~,T~~.::VE~E:~~::~:;~~ :';~i:':~~~~: Exports .... __ _ ._____ _ 430,287 ____ Stocks, Nov. 30th__ I_::§_= 516,057 1,464,083 1,308,483 ____ __ __ 421,911 405,148 ~111111111111111111111I111111111111111I111I11I11I111111111111111111111111111111111111111111111111111111111111111111111111111111I11I11I111111I11I1111111I111111I111111~ ::'111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIf § i;_ E ~:; ~:~:;:~;;T::::::~:~AT~r6~~3'~'9:;7'~4T N~2 96: '~4 3·67 ! For other foreign ports __ __ __ ________ ._____ For coastwise ports__ __ __ ______________ ________ § In compresses__________________ ________________ ____ _ 14,000 § 346,424 § 3 LIVESTOCK Almost without exception, reports from all sections of the district's range territory are to the effect that ranges are in an unusually good condition and that all classes of livestock are going into the winter in a better condition than for several years past. Continued precipitation and generally moderate temperatures have been beneficial to the growth of winter weeds. However, the weeds in many localities are too small for grazing, but the small grain pasturage, which is unusually good this year, has been of material aid in f attening the cattle. The average condition of cattle on Texas ranges as of December 1st was 93 per cent, as compared to 79 per cent on that date a year ago. The condition of sheep advanced one point above the November 1st average and was 5 points higher than on December 1st last year. Prominent features of the livestock situation are that a minimum of feeding is expected during the winter; losses so far this year have been light; the heavy movement of livestock to market this fall has greatly reduced the number of stock on the ranges with the result that some pastures are reported to be understocked; and conditions appear excellent for a satisfactory calf and lamb crop next year. The November receipts of cattle, calves, and sheep at the Fort Worth market were considerably less than the receipts of the previous month, but calves were the only class to show a decrease in volume as compared to the corresponding month last year. The gains in other classes were comparatively light. The ::= HOUSTON COTTON No •. " .. cattle yarded in November were the smallest in numNovember November This --. Last ber of any month since April. Season Season 1923 1922 Market conditions were generally satisfactory dur;; Receipts-Gross ____ 547,214 530,202 2,553,183 2,085,328 :: § Receipts-Net ______ 276,518 268,519 ',1,420,855 1,149,841 § ing the past month, but prices sagged to low levels ~=; _ Exports Nov. 30th__ __ ______________ ____173,991 441,133 399,454 ------------------ 185,897 648,566 454,198 about the middle of the month, when receipts were Stocks, __ __________ liberal enough to demoralize the market. However, toward the close of the month when the supply was greatly reduced a strengthening of the market oc§ SEASON'S RECEIPTS, EXPORTS, AND STOCKS ~ curred. Cattle prices showed an upward trend dur§ AT ALL UNITED STATES PORTS § ing the earlier part of November, but the heavy re,. S en ceipts toward the middle of the month forced prices 1'hls Season Lns t,1 68,:;0 Receipts since Aug. lst..________ 3,833,092 3 down to low levels. The market recovered part of the :: Exports: Great Britain -------818,748 754,676;; losses during the last week, when there was a reduced supply in the face of a strong demand. In the hog division receipts were scarce and competition i_ i_ was spirited, but the market was erratic. A top ;; Stocks at all U. S. ports, ;; ;; Nov. 30th ____ __ ________ __ ________ .___ 1,049,918 1,097,483;; price of $7.65 was paid during the third week, but ~ ~ the month closed with the best going at $7.00 to ;11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111. § 14,000 276,965 tl l" "I" "~I~I~:.~"I I:;I:;I:;I:;I-I;I-I;,-I;,-I;,-I;,-I;,-I:;,;'-';'-'; ':;':;':;':;':;':;'-';'-" I I" ":'~':':~'~'~" I I:'~'~,: :,~,J ':111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111; MOVi:::'~~: 1=:=_== :=:= 1=_- ijllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllill11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;" ~ 11111I11111I1111111111111111111111111111111'11I1111111111I11I1111 1111111111111111111111111111111111111111111111111111111111111111111111111 1I111111111111111111111111~ I_=~ I=§ ~jJ~~::~DEt~ ,,!!!:ill ,,!!HI! Movements and Prices 4 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS $7.15. Receipts of sheep and lambs were exceptionally small throughout the month, and the supply was below trade requirements. Prices on good wethers ranged from $6.25 to $7.00. Some fat lambs sold as high as $11.50, but the general range on feeder lambs was from $10.00 to $10.75. As compared to the ruling prices at the end of the previous month, November closed with quotations about 50 cents lower on calves, 25 cents on hogs, and 75 cents on pigs. On the other hand, steers remained about steady, fat cows and canners strengthened, sheep gained 25 cents, and feeder lambs $1.00. The first week in December witnessed a good demand and an active market for all classes of cattle. Several cars of weighty beef steers sold at $7.50 to $7.60, while the range on Oklahoma fed yearlings was from $8.50 to $8.85, and Texas yearlings brought $8.75. An advance of $1.00 was scored on calves. Hog receipts during the first week fell below trade requirements, and a markup of 25 to 30 cents occurred. Quotations on pigs ranged from 50 cents to 75 cents higher. !JIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIllIIIIIIIIIIIIIlII II IllIIlIIIIIlIIiI11111111111111 1111111111111111111111111111111 1111 1111111111111111 111111111 1111 11 1111111111111'; FORT WORTH LIVESTOCK RECEIPTS November 1923 October 1923 Loss or . Gain November 1922 Cattle ......83,854 108,160 L 24,306 83,294 Calves .......36,934 53,705 L 16,771 46,052 Hogs ....... .45,633 43,658 G 1,975 37,011 Sheep ...... 27,410 38,298 L 10,888 24,281 Loss or Gain G 560 L 9;118 G 8,622 G 3,129 = :;111111111111 1111 1 11 1 1111 '11111 11111111 111 1111111111111111111111 1111111111111111 1111111111111111111111111 111111111111111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIII I~ :,1 111 11111111111111111 1111111111 11 11111111111 1111 1111111 1111 1111111111 11111111111 1 1111111111111111111111111111 111111111111 111111111 111111 1111111111I1111111111nlllllt:. COMPARATIVE TOP LIVESTOCK PRICES November 1923 ~ Beef steers .............................. Stocker steers ........................ Butcher cows.......................... Stocker cows .......................... Calves .................................... Hogs ........................................ Sheep ...................................... Lambs ...................................... $7.00 6.50 5.00 2.50 7.00 7.65 7.00 11.50 October 1928 $8.00 7.10 5.50 3.25 7.50 8.30 7.25 12.00i November 1922 $7.50 7.00 5.85 3.50 6.35 8.50 7.50 13.50 ~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIJIIIIII IIIIIIIIIIIII IIIIIIIII IIIIIIIII I II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII II II~ TEXTILE MILLING The November production of nine textile mills of as against 3,155 bales for that month last year. There this district reflected a decline of 4.4 per cent as were 88,808 spindles active as compared to 84,376 compared to the previous month, and 7.9 per cent as last year. Both stocks and unfilled orders on hand compared to the corresponding month of 1922. These at the close of November showed a substantial inmills consumed 2,787 bales of cotton in November, crease as compared to those at the close of October. WHOLESALE TRADE Seasonal dullness was evident in the A seasonal slackening in business characterized Dry the distribution of merchandise at wholesale during Goods wholesale dry goods trade during November. Although farm implements was the only November, when the sales of twelve reporting line of trade to show a gain over the pre- firms reflected a decline of 26.4 per cent as comceding month, the distribution of goods in every pared to October. That trade was active, however, reporting line was substantially greater than during is shown by the fact that sales were 31.3 per cent the corresponding month of 1922. In wholesale chan- above those of the same month last year. As the nels, the year-end inventory period is at hand, and year-end approaches the disposition to buy as the buying generally is on a moderate scale, due to the demand arises remains sharply defined and purfact that retailers are holding their purchases to a chases as a general rule represent fill-in orders. minimum in order to close the year with low stocks. The continued rise in the raw cotton market is Nevertheless, consumer buying has continued brisk gradually forcing up the price on cotton goods, but throughout the fall, and retail merchants have found the upward trend has failed to stimulate forward it necessary to make frequent replacement orders buying to any great extent. with the result that wholesale distribution has been Collections continue good, and both wholesalers well maintained. and retailers are optimistic over the present outlook. Reports being received from many sections of the district indicate that retailers are continuing to re- Hardware The sales of reporting hardware duce th eir customers' accounts, and retailers are firms decline.d 9.5 per. cent as comshowing a disposition to take their discount on bills pared to October sales, but were 9.7 per cent greater with the wholesalers. than November, 1922, sales. The volume of sales for MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS The volume of acceptances executed by accepting banks of this district and outstanding on the last day of the month reflected a slight decline in November, but was still relatively large. The total outstanding on November 30th was $3,727,571.05 as compared to $4,164,668.28 on October 31st. The amount executed against import and export transactions dropped from $3,294,308.92 on October 31st to $2,785,825.72 on November 30th, but the amount based on the domestic shipment and storage of goods increased from $870,359.36 on October 31st to $941,745.33 on November 30th. The Federal Reserve Bank continued to increase its investments in this type of paper, the amount of its holdings being $42,373,583.52 on November 30th as compared to $32,117,720.46 on October 31st. Acceptance Market I I 7 The net demand deposits of reserve city banks reflected a further increase during the past month, reaching a total of $260,504,000 on November 28th, as compared to $251,102,000 on October 31st, or a net gain of $9,402,000 during the four-week period. There was an expansion in loans during the same period of $5,631,000. There was a sharp decline in the bills payable and rediscounts with the Federal Reserve Bank, being $4,967,000 on November 28th as compared to $8,617,000 on October 31st, or a net reduction of $3,650,000. However, their borrowings from the Federal Reserve Bank were $1,301,000 greater than on November 29, 1922. The ratio of loans to net demand deposits was 88 per cent on November 28th, as compared to 89 per cent on October 31st, and 90 per cent on November 29, 1922. Condition of Reserve City Banks IIIII'IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII'IIII'IIIII""IIIIII'~~~~';;~'~~IIII~;~';';~';';~~""~;111;~~';';;111;~'~~~""~~""~~~~'~;;~""~~';'~~'~11111111111111111111111111111111111111111111111111111111111111111 1. 2. 3. 4. 6. • Number of. r!lportmg banks.................................................................... U. S. secunbes owned .................. ;.. ;........................................................ All other stocks, bonds and securltles owned........................................ Loans secured by U. S. Government obligations................................ Loans secured by stocks and bonds other than U. S. Government obligations .......................................................................................... i ~: ~i~:~~~;~~::~~:~~~~~~:::::: :: : : : :: : :: ::: : : : : :: : : : : : : : : :: : ::: : : : :::: :::: ~ 9. § 16. !i 11. ~ Reserve with Federal Reserve Bank...................................................... Bills payable and rediscounts with Federal Reserve Bank................ Ratio of loans ( *) to net demand deposits ............................................ "'Loans include only items 4 and 6. Nov. 28. 1923 52 $53,181,000 13 655 000 3;072;000 Oct. 31. 1923 52 $ 53,113,000 12 309 000 3;060;000 Nov. 29. 1922 52 $48,016,000 8 651 000 4;917;000 ;: § § § ~ F 66,005,000 62,888,000 54,897,000 ~~HgU~~ ~~H~U~~ § ~iH~~:~~·~ 28,283,000 4,967,000 88% 28,447,000 8,617,000 89 % 26,043,000 3,666,000 90% fillNlllllll llllllllllllll lll llll llllllllllll ll l ll lllllllllllllllllllllllllllllllllltI11 1111111 111111111111 111 1 111111111111111111111111111111111111111 111111111111111111111111111 111 1111111 111 111111111111111111111111 111 111 11 11111111 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111., A further recession in our loans to me~ber banks occurred during N 0vember and the first half of December. The net reduction in November amounted to $5,882,198.80. During the first thirteen days of December member banks' borrowings declined $1,439,773.29, the total volume of outstanding loans on December 13th being $13,983,389.07. 'At the close of November there were 141 banks borrowing from the Federal Reserve Bank, as compared to 208 on October 31st, indicating that 67 banks completely retired their lines during November. Due to the large increase in investments in bankers' acceptances our total bills held increased from $53,423,081.32 on October 31st to $57,796,745.88 on November 30th, distributed as follows : Operations of the Federal Reserve Bank The actual circulation of Federal reserve notes declined $1,292,685 during the past month, being $56,494,965 on November 30th, as compared to $57,787,650 on October 31st. There was a further reduction of $1,636,590 in the circulation of these notes during the first thirteen days of December. The reserve accounts of member banks declined from $59,146,596.18 on October .31st to $58,348,680.24 on November 30th, but had risen to $61,247,591.31 on December 13th. As the season advances the volume Deposits of Member Banks of member banks' deposits continues an upward course. The total net ~ ~ § demand deposits of member banks rose from $629,§ 944,000 on October 24th to $654,398,000 on Novem§ § ber 28th. It is significant to note that these deposits ~1U11I11I11I1I1I11"11I1I111111111111111111111111111111111111111111111111111111111111111111 1 111111111 1IIIIIIIIIIIIIIIIIIIIIIII I IIIIIIIIIIIII I IIIIIIII I II II IIIIIIIII'l! ~ !i ~ l! I I Member banks' collateral notes secured b~ U. S. Government obligations ............ $ 3,299,300.00 RedIscounts and all other loans to member banks .......................................................... 12,123,862.36 Open market purchases (bankers' acceptances) .......................................................... 42,373,583.62 Total bills held ........................................$57,796,745.88 ~ ,I11I11I1II11I1II1I11III11I1IIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIM'UIIIIIIIIIIIIIII I IIIIIIIIIIII 1I111111111111111111111111111111111111 1 1111111111111111111111111~ have increased $168,754,000 since July 25th. MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 8 §IIIIIIIIIIIIIII I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIII~III II IIIII II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 11 11111111111111 1 11111111111111111111111111111111111111111111111111111111111111111111111111111111I111111111111111111111111111111111111111§ DEPOSITS OF MEMBER BANKS (000'5 Omitted) I Total Demand April 25, 1923 ...................... May 23, 1923 ........................ June 27, 1923 ........................ 1 July 25, 1923 ........................ Aug. 29, 1923........................ 1 Sept. 26, 1923........................ \ Oct. 24, 1923 ........................ _ Nov. 28 , 1923........................ 527,082 514,274 496,227 485,644 501,088 574,421 629,944 654,398 Banks in Cities With a Population Between 6,000 and 14,999 Total Time Demand 138,213 139,612 141,251 139,868 139,356 139,472 139,723 143,713 Time 150,690 145,741 139,013 133,796 149,580 186,786 209,681 220,297 18,02] 17,902 18,261 18,507 18,516 18,344 17,447 17,111 Banks III Cities With a Population Between 16,000 and 9g,999 Demand Bank. in Cities With a Population Leas Than 6,000 All Member Banks Time Demand Time Demand Time 20,885 21,626 21,692 22,014 22,989 22,978 23,381 23,479 118,429 113,985 109,330 107,579 103,508 109,108 116,717 117,596 51,546 51,278 50,897 50,940 49,699 50,264 50,541 52,550 170,062 167,701 163,052 159,864 160,228 177,193 195,566 205,221 47,76 1 48,80 6 50,40 1 48,40 7 48,15 2 47,88 6 48,35 4 50,57 3 87,901 86,847 84,832 84,405 87,772 101,334 107,980 111,284 Bank. In Cities With a Population Over 100,000 § ~IIIIIIIIIIIIIIIIIIII II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 111111111 1 111111111 11 111111111111111111111111111111111111111111111111 1111 1111111111 111 11111 1 11 1 11111111 1 11 111.11 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1I111111111111111~111111111111111111111111;;' Discount Rates There is presented the "high," "low," and "customary" rates charged by commercial banks in the cities listed below for the thirty-day period ending December 15th. ::,!II IIIIIII IIIIIIII IIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIII IIII IIIIII11111111111111111111111 111 111 111 1111111111111111111111111111111111111111111111111111111111111111111 1111 111111 111111111111111111111 111 1111 111 111111 111111111 11 1111 11111111 1111 1111111111 11 11111111111111111111111111111 111111111111111111111111111111111111111111111111111 1111 11'';: ~ ~ NOVEMBER DISCOUNT RATES I I ! I c: :: ~ § § § s ~ § ~ g ~ i § I I ~ .~ § ~ I I ; :: E ;: § § § ~ g ~ § ~ § ~ I I ~llllllIllllllIlllllll l ll ll lllnlllllllllllllllll llllllll 1111111I 1111111111 1 1 1111111111 111111111111 1 11 11111 1 1 11!11111111 1 111111111111 1 111 1 11111 111 111111111 1 11 11 1111111111II IIIII II IIIII III}IIII I I II I I IIIII IIII III IIIIIII II IIIIIIII III1111 111111 1111111111 1 1111111111 1111 11111111111111111111111111 1111111111111111 1 1I11'1 1111 1l 111111111 1 11 1l11l1111~ Savings Deposits Reports from 121 banks which operate a savings department reflect a gain of 2.5 per cent in savings deposits between October 31st and November 30th. There has been an increase of 17.9 per cent in these deposits since November 30th a year ago. The number of savings depositors, as reported by 114 banks, was 243,083 on November 30th, as compared to 240,266 on October 31st, and 208,390 on November 30, 1922. ;11111111111111111111111111111111111111111111111111111111111111111 11 1111 1 11111 1 111111111111111111111111111111111111 1 11I1111I111 1 1I111I11111IIUIIIIIIIIIIIIIIIIIIIII IIIIII I\I I IIIII II111111111111 111111111111111111111111111 1 1111111111111111111111111111111111 1 11IIIIIU IIIIIII I II IIIIIIIIIIII'II IIII II II I IIIIIIII HIIIIIIIIII I"IIIII IIIIIIIIIIIIII ~ ~umber of RB~~r~~~g ~etfmont...... . .. ..... . .. . . ....... . .. .. . . ........... ....... ....... ... . ... .. .. ............... Ef p~~~.:::::::::::::::::::::.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~ort Worth ............................................................................... ouston ..................................................................................... San Antonio ............................................................................... ~:~:ep~l't ................................................................................ Wichit;;"F';;ii~""""""" " "" ' ''' ''''''''''''''''''''' '''''''''''''''' '''' '' '' ''''''' All others I ........................................................................... Total ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::. N~~'2r' N~~2:0, ~:~.or 0 ~~~gl, Inc. or Dec. 4 2,221,286 1,692,400 +31.3 2,204,347 +.8 6 11,353,560 8,774,071 +29 .4 10,955,759 + 33 14 6 5 5 4 19,559,830 9 512 163 10:605:899 2,596,923 1,799,177 16,369,529 8 714 313 8:431:529 1,913,831 2,503,446 + 19.5 19,275,220 5 4 + 1.5 3 +11:5 + 3.4 3.7 ~ ~:Zi~:~~~ ~:~n:~~g +2~:~ +2~:~ +35.7 -39.1 ~:~~~:~~~ ~:gi~:3~8 2,511,325 1,869,063 t t~ 1::1 :~:::::::: :~:::;::~: ::~:: :::::~:::~ : ~:: ~ ~1 11 1I111I111 11I111 1I1 11I1 1111I111I111111HIII IIIIIIIII IIII III IIII 11 11 1111111111111111111111111111 1 11 1111111 111 1111111111111111111 1 1 1111 11IIIIIUIIIIIUIIIIIIIIIIIIIIIIIIIIIIII IIII IIIIIIII IIIIIII I II II11111 11111 111111 1 111111111111111 111111 11111 111111111 1 11111 1111111 1111 11111111111 1 11111 11111 11111 1 11111111111 1111111111 11111 11111 111 1 111111II:: MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS ~ 11111111111I1111111111111I111111111111 1 111111111 1 1111111111 1 11111111111111111111111111111 1 111111111111111111 11 IIII I I1111111111111111111 1 1111111111111 1 11 1 1111111111 1 1IIIIflllllllllllllllllllllllllllllllllllllllllllllllllllllili1111111111111111111 1 111111111111111 1 1111111111111111111111111 1 1111111111 1 11 111'1 ' 11 1 1 1111 1 1 1 1 11 1 1 11 1 1 111 1111111II! ~ § NUMBER OF SAVINGS DEPOSITORS I B"um,nt ................................................................................................................................... § Dallas ......................................................................................................................................... ~ El Paso ..................................................................................................................................... 5 Fort Worth................................................................................................................................. § Houston ..................................................................................................................................... § Sa n Ant onio ............................. ................................................................................................ § Shreveport ........................................................................................................... ...................... § Waco .................................................................................................................... ...................... § Wichita Falls ........................................................................................................................... § All Others ................................................................................................................................. ! ~ ti;!~': N;~~:, N;~,::, Oi~~:O i Total ....................................................................................................................................... ~ ~ 6 5 5 14 5 5 5 4 62 37,495 27,222 13,854 54,409 14,752 21,355 5,408 6,449 54,988 114 243,083 20 ,807 25,4G3 13,076 42,237 12,779 18,345 4,589 4,686 51,447 37,311 26,916 13,771 53,001 14,570 21 ,031 5,325 6,371 54,880 208,390 1 240,266 ~ § ~ ~ § g ~ § § § I ~ § ::1111111111111111 11111 111 111 111 11 111 1111111111111111111111"11 1111111111 1111 11111 11 1111111 111 111111111111111 1IIIIII11111111111111111111111111111111111111111 1111111111111 11 11 11 111 11 11111 111111111111 11 11 1111 11111111111111111111111111111111111111111111111 1111 11 111 1111111 11 1111111111111111 11 111 11 11 111 11111111 111111 111 11111 111111111III IIII III I? FAILURES For the third consecutive month both the number and indebtedness of commercial failures reflected sharp increases as compared to the previous month. There were 127 defaults in November with an aggregate indebtedness of $4,445,724, which compares to 111 failures in October with liabilities amounting to $2,417,470, and 83 insolvencies in November, 1922, I involving liabilities of $1,361,108. It is to be noted that there were more failures in November than in any previous month of this year. Furthermor e, the volume of indebtedness involved in these defaults has been exceeded in only three months during the past eight years. I ::'111111111111111111111111111111111111111111111111 1111111 1111111111111111111 111 1111111111111111111111111111111111111111111IIIIIIIIIIUlIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIIIIIII11111111111111111111111111111 1111111111111111111111111111111111111111111111111111111111111111111111111 111 11 11111 111111111111111 1111 11 111111111 111 1111'- E leventhCOMMERCIALDistrict F ederal R eserve FAILURES 1928 1922 Amount No. January February .............. ..... ................ March ........ ...... .................... ..... . April .................................... .... May ......................... .................. June ............................................ , uly ............................... ............. 1\ugust ...................................... September ........... .. ..................... October ...................................... November .................................. a . a ••••• •• • •••••••• • •••••••••• •••••• if. ~ Total eleve~ months ....... Amount No. All F edera l Reserve Dist ricts 1922 1928 No. Amount No. Amoun t 127 1,524,107 2,104,596 2,474,504 8,874,897 3,779,959 1,293,018 2,576,000 1,020,596 1,757,766 2,417,470 4,445,724 207 207 107 167 84 114 64 85 70 91 83 4,326,594 5,889,143 2,121,725 3,865,301 2,175,351 2,481,679 1,230,581 5,198,294 1,480,222 1,014,291 1,361,108 2,126 1,508 1,682 1,520 1,530 1,358 1,231 1,319 1,226 1,673 1,704 49,210,497 40,627,939 48,393,138 51,491,941 41,022,277 28,678,276 35,721,188 34,334,722 28,696,649 79,301,741 50,291,708 2,723 2,331 2,463 2,167 1,960 1,740 1,753 1,714 1,566 1,708 1,737 73,795,780 72,608,393 71,608,192 73,058,637 44,402,886 38,242,45 0 40,010,313 40,279,718 36,908,126 34,647,438 40,265,297 1,033 32,268,6371 1,279 31,144,289 16,877 487,770,076 21,862 565,827,230 117 91 91 93 78 97 81 68 79 111 ,.1111111111111111111111111111111111111111111111111 1111111111111111111111111111111111111111111111111111111111111 111 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,111111111111111111111111111111111111111::: PETROLEUM Although another new high record was established in oil production for the Eleventh Federal Reserve District during November, there was a general decline in the output of practically all the major producing areas, with the exception of the Powell field, which alone produced more oil in November than the whole state of Texas produced during a similar period during the early months of this year. The district's total output for November amounted to 19,342,590 barrels as compared to 16,784,220 barrels in October. The number of wells completed declined from 361 in October to 308 in November, but 505,633 barrels of new production were added from the 234 successful completions in November as compared · with a flush production of 442,325 barrels from the 281 successful completions in October. The output of Texas fields rose from 14,741,506 barrels in October to 17,589,150 barrels in November. While the new producers completed numbered 196 wells in November as compared to 248 wells in October, the new production added in the former month amounted to 503,740 barrels, as against 441,513 barrels in the latter month. An increase of 3,329,085 barrels in the production of the Powell field brought the November yield of that field to 9,824,325 barrels. There were 111 completions and only nine were failures, with the initial flow of producing wells totaling 471,480 barrels. The MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 11 LUMBER There was a sharp decline in the production rate of Eleventh District pine mills during November. The actual production was 8 per cent below normal, as compared to 3 per cent below normal in October .. Shipments dropped from 7 per cent above production in October to 5 per cent below production in November. The new orders received at the mills showed a further sharp decline, befng 27 per cent below normal production in November as cOmpared to 9 per cent in October. The decline in shipments and orders was due largely to seasonal influences, as the retail yards generally reduce their stocks as low as possible before the close of the year. The unfilled orders on the books of 46 mills at the close of Nov~mber amounted to 50,398,200 feet as compared to 59,695,880 feet on the books of 48 mills at the close of October. Stocks on hand November 30th were 17 per cent below normal as compared to 19 per cent on October 31st. ~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 111111111111111111111111 1 111111111111111111111111111111111111111111111111111111111111111111111111 '. § = ~_: _ • ~ ~ MILL STATI~~ICS um er 0 r ep or mg ml s ............ P r oduction ...................................... 96,882,663 feet Shipments ............................... ......... 91,930,656 feet N b N~VEMB~R PI~E i i~= _ ~ i g~~Iii~d ..~~·d~·~~;..N~~~~;;·b~·~.. 30ti~:: ~~:~~g~g ~::~ ! ¥ Normal production ........................ 104,526,064 feet ~ ! ~ i . % Stocks, November 30th .................. 265,358,635 Normal stocks ................................ 311,381,597 Shipments below production........ 4,952,007 Actual production below normaL 7,643,401 Orders below normal production 22,191,928 Stocks below normaL. ................... 46,022,962 fe et feet feet= 5% fee t= 8% feet=27 % fee t=17 % ~111111111111111111111111111111111111111111111111111111111111111111111111111111 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111, BUILDING A further seasonal decline in building operations was reflected in the number and total estimated cost of new projects begun during November at eleven principal cities in the Eleventh Federal Reserve District. The valuation of permits issued at these centers amounted to $4,882,124 in November as com- ' pared to $5,058,798 in October, and $3,998,287 in November a year ago. It will be observed that while i there was a decline of 3.5 per cent as compared to the previous month, the November valuation was 22.1 per cent larger than the corresponding month of 1922. There were 2,438 permits issued in November as compared to 2,916 in October, and 2,317 in November, 1922. Waco was the only city to issue more permits in November than during the previous month. I §IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I11111 111 111111111 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1111111111111111111111111 11111111111111111111111111111111111111111111111111111IIIIIIIIIIII II IIII IIIIII IIIIIIIIIIIIII§ BUILDING PERMITS ; 8 I II I § I ::IIIIIIIIIIIIIIIIIIIIIIIIIIIIII II I! I II IIIIIIIIIIIIIIIIIIIIII1111111111111111111111 11 11111111111111111111111111111111111111111111 1 111111111111 1 111111111111111111 1 11111 1 1111 1 1 1 11111111 111111111 1 11111111111111111'11111111111111111111111111111111111111111111111111111111111111111111111111111111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~ CEMENT After showing a steady decline for three months, the production of Portland cement at Texas mjlls reflected a gain of 4.8 per cent as compared to October. The November production amounted to 12 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS and 51.2 per cent greater than those at the close of November, 1922. For the first eleven months of this year production was 20.9 per cent greatel~ than for the corresponding period of 1922, while shipments were 14.7 per cent greater. 348,000 barrels, as against 332,000 barrels in October, and 311,000 barrels in November, 1922. Shipments during November totaled 320,000 barrels, as compared to 326,000 in October and 304,000 in November, 1922. Stocks at the end of November were 11.9 per cent larger than those at the end of October, I I : 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1 11111 1~11111I111111111111I11I111111I1111111111111111111111111111 11111111111111111111111111111111111l11I11111I111111U! PRODUCTION, s:::.~:,~~s :':bJ~~f.:~~:~ PO~::NDp:E:,N:'m' ..,"'" Mo.", ;; 1923 1922 § 348,000 1 320,000 311,000 304,000 +11.9 + 5.3 332,000 326,000 254,000 168,000! + 51.2 227,000 ~ P r oduction of Texas mills................. ;; ~ Shipment s from Texas mills............. Stocks at the end of the month at Texas mills ...................................... Inc. or D.ec. 1923 Inc. or Dec. 1928 1922 p" c.., Inc. or Dec. ;; +20.9 ~ +14.7 § ;; + 11.9 ................ ................ ................ ~ + 4.83,948,0003,266,000 - 1.83,889,000 3,392,000 ~11111111 1 1I111I11 1 1 111 11 1 11 1 11 11 1 1 11111111111 1 11 1 1 111 11 11 1 IIIII I IIIII IIII I I II IIIIII IIII II IIIIIIIIIII II IIIIII tl lllllili111111111111111 111 1111111111111111 11; 111 1 11111111111111111111111 11 111111111111 11 111111111 1 111111111111111111111111111111 1 11111111 111111111 1 11 11111111 1 1 1 11 11 11111111111111111111111111 11111111 1 111l11111l1111l1111l11l11111 1 1~ MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS 13 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federnl Reserve Boord os of December 24. 1923.) Production of basic commodities and factory employment decreased in November. Distribution of merchandise by wholesalers and retailers was somewhat less active, and wholesale prices showed a further slight recession. PRODUCTION Production in basic industries decreased about 2 per cent in November. The decline was due chiefly to reduced production of iron and steel and smaller sugar meltings. The Federal Reserve Board's new index of factory employment, which is shown by the accompanying chart, also declined, due to lessened activity at iron and steel plants and large seasonal reductions at clothing establishments. The volume of employment is now 2 per cent smaller than in the spring, but 3 per cent larger than a year ago. Contract awards for new buildings were smaller in N 0vember than in October in all reporting districts except New York, but were 20 per cent larger than a year ago. Final estimates by the Department of Agriculture show larger yields of corn, oats, tobacco and cotton than in 1922, and smaller yields of wheat, hay and potatoes. The total value of agricultural production at December 1st prices was 12 per cent Jarger than in 1922. Each of the ten principal crops eX'cept wheat showed an increase in value. TRADE Railroad freight shipments in November showed about the usual seasonal decline from October, but were in heavier volume as compared with previous years. Wholesale trade was 13 per cent less in N 0vember than in October which is more than the usual decrease at this season, but sales continued to be slightly larger than a year ago. Sales of hardware, drugs, and meat were larger than in November, 1922, while sales of shoes were smaller. Retail business was sm~dler than in October in most lines. Sales of mail order houses declined more than sales in department stores, but were 11 per cent larger than a year ago. PRICES The Bureau of Labor Statistics index of wholesale prices declined in November to a point four per cent lower than last spring and about 3 per cent lower than a year ago. The chief reductions occurred in prices of animal products, fuel, and house furnishings. Prices of clothing and crops, on the other hand, increased and the latter group averaged higher than in any month since 1920. During the first half of December prices of sheep, beef, sugar, cotton, silk, and rubber declined, while quotations on crude oil, wheat, and wool were slightly higher. BANK CREDIT The total volume of credit extended by member banks in clearing cities showed but little change between the middle of November and the middle of December. A seasonal reduction in commercial and agricultural loans in most districts was accompanied by increased loans on securities, with the result that total loans remained practically constant. During the same period borrowings at the Federal reserve banks were also practically unchanged. Holdings of acceptances increased somewhat partly in connection with the financing of cotton exports. The increased demand for curreny for holiday trade was reflected in both a moderate expansion in Federal reserve note circulation and a reduction in gold certificates held by the Federal reserve banks. Rates on commercial paper sold in the open market continued to show an easier tendency as indicated by increased purchases at 4 and 4%. per cent, particularly in interior districts. The December issues of oneyear 41/.1! per cent and six months 4 per cent treasury certificates, compared with 4%, per cent on a six months issue hold in September were largely oversubscribed. A NEW INDEX This month we present for the first time a chart showing the new index of employment in manufacturing industries, compiled by the Federal Reserve Board's Division of Research and Statistics. Wide industrial and geographical representation in the composition of the index is obtained by using data collected by a number of Federal and State agencies covering 33 separate industries which are grouped into 10 general classes, as follows: metals, textiles, lumber, vehicles, paper and printing, f ood, leather , 14 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS stone, clay and glass, tobacco, and chemicals. The final index and each of the 10 group indexes were obtained by combining the 33 individual industry sedes, weighting them in accordance with their relative importance as determined by the number employed according to the census of manufactures of 1919 and 1921. The index is expressed in terms of percentages with the monthly average for 1919 as the base, i. e., 100 per cent. It is so constructed that its movements, although they do not measure the total volume of employment, reflect increases or decreases in this volume. No correction was made for normal seasonal variations, because, although those fluctuations are noticeable in indivdual industries, they vary as to time and degree and in the final index largely offset each other. A full description of the data and methods used in compiling this index and of the results obtained was published in the December issue of the Federal Reserve Bulletin. ._---_._--- MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS Nole: 15 Dn.e Adopted by Uniled Stales Bureau of Labor Statistics 16 MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS i"" ' ' ' ' ' ' ' ' ' :~:' :~ ' :~:~ :'~: ~ ' ~:' :~ ' '~ ~ ~ ~' '~:' :~ "':~ :~:"': ~ "':':"'~ : :~':~ "~ :~:"'~"':~: ~ ":'~ ~: :"':~:" " "! I ~~::r~~,t:: ~:d::~j~:s:;:,~~~e~t of th:S ::t~m:ber banks in the Eleventh Federal Reserve § ; I § "Recent reports received by this bank, both from its own field men and from government sources, indicate that the Eleventh Federal Reserve District is again confronted with a seriously deficient feed crop. While the farmers in some sections of the district have produced sufficient feed to supply their needs until the next crop is harvested, it is apparent that an unusually short crop has been produced in the district as a whole. "We realize, of course, that in a few sections of the district the soil is not adapted to the production of feedstuffs in needed kinds and quantities. The fact still remains, however, that even in those sections in which soil and climatic conditions offer superior advantages for the growing of corn, oats, hay, and other feedstuffs the production of these staples has been gradually diminishing from year to year, and in a large part of this area the cotton acreage has shown a steady expansion. "The upward trend in the cotton market during recent years has probably had as much to do with the steady decline in feedstuff production in the Southwest as have the unfavorable weather conditions to which the feed crops have been subject. The theory that high cotton prices justify enlargement of the cotton acreage at the expense of essential feed crops is a dangerous fallacy. No community can afford the economic loss involved in paying the freight and profit upon a supply of feed which it can produce at home. What the Southwest needs is not a larger cotton acreage at the expense of the feed crop acreage, but a larger yield of cotton lint per acre, which can be accomplished by intensive cultural methods, aided and encouraged by the credit facilities of our banks. "The time has come, in our opinion, when this matter should receive the serious attention of our member banks in those communities which do not produce feedstuffs in commercial quantities. As a matter of sound banking policy, recognition should be given, to a greater degree than has apparently been given heretofore, to the obligation that rests upon a bank to establish a definite relation between its policy in dispensing credit to agricultural producers and the policy of these producers themselves as to the use of the credit so dispensed. I therefore earnestly commend to your serious consideration the importance of discussing the feed problem with your farmer customers in connection with their plans for the coming year. After giving due consideration to their feed requirements for the approaching winter and spring and to the adaptability of their soil for feed production you can doubtless formulate a credit policy that will encourage them to adopt a diversified and intensive production program that will enable them to produce on their own land as large a portion as possible of the feed and other products that they will need for home con·· sumption. Credit dispensed to our agricultural producers upon any other basis than that which will tend to reduce their operating costs to a minimum cannot be said to serve their best interest nor contribute to their permanent prosperity." I ~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111!11111111111111I11111111t1111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~
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