Full text of Review (Federal Reserve Bank of Dallas) : January 1, 1927

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MONTHLY BUSINESS REVIEW
OF THE

FEDERAL RESERVE BANK OF DALLAS
c.

C. WALSH,

CHAS. C. HALL-W. J. EVANS,

Chairman and . Federal ae..e"e AlI'ent

Assistant Federal Rese"e Acenla

(Compiled December 15, 1926)
:

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Volume 11, No. 11

Dallas, Texas, January 1, 1927

This copy released for pub Iicat'ion in afternoon pavers

December 28

DISTRICT SUMMARY
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THE SITUATION AT A GLANCE

$83~~:~:,~1~0

Bank debits to individual accounts (at 16 cities ) .................................... .......................................................
Department store sales ................................................................................................................ _ ....................
Reserve Bank loans to member banks at end of month ......................................................................... _ $ 18,967,670
$ 19,709,868
Reserve Bank ratic/ at end of month................................................................................................................
66.0 %
69.5 %
Building permit valuations at larger centers ......................... _ ................._ .................................................... $ 4.-160 .407
$ 8,221,006
Commercial failures (number) ................................................................................................ _ .........................
96
68
Commercial failures (liabilities) ................................................................................................... _ .................. $ 1,648,071
$ 1,181.400
Oil production (barrels )
20,64 8,7]0
20,287,676
Lumber orders at pine mills (per cent of normal production) ...............................................:....................
72 %
80 ry.

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D~c~nc.

Dec.
Dec.
Inc.
Dec.
Inc.
fnc.
fll c.
Dec.

or

De~:7% _~

6.1 %
29.1 %
6.6 points
46.7 %
39.7 %
30.6 %
1.8 %
8 points

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November was a month of adjustment in husiness to the
new situation created by the drastic decline in the cotton
market during the two preceding months. Following the
marked shrinkage in merchandise sales during October, dis·
tribution at both wholesale and retail in November was
maintained at a surprisingly high level, disclosing that the
effects of the cotton situation upon this district were not
as acute as they were generally expected to be. While
Wholesale trade was smaller than in October, due in a large
measure to seasonal influences, it compared favorably with
that of November last year. Although retailers in rural sections are buying only for immediate delivery, there has
been a goodly number of small replacement orders which
bulk large in the aggregate. Dep artment store sales showed
less than the usual seasonal decline from October and exceeded those of November a year ago by 11 per cent. Late
reports indicate that business durin g December is proving
to be very satisfactory. The volume of payment by check
declined seasonally from the previous month but was 3
per cent larger than last year.
The peak in the demand for credit appears to have passed
and loans at banks in reserve cities and at the Federal Reserve Bank have shown a substantial decline. Federal
Reserve Bank loans Lo member banks declined approximately $11,000,000 between October 31 and December 15
and on the latter date stood at $8,689,84,2, or approximately
$500,000 less than on the same date last year. The deposits of member banks rose $9,891.,000 during the month
but on November 24,th they were $4,0,000,000 less than a
year earlier. The apparent easy condition of the money
market of this district was disclosed by the heavy oversubscription for the December 15 issue of 314 per cent
United States Treasury Certificates of Indebtedness. · Total'
subscriptions to this issue amounted to $26,326,500 and
allotments to the extent of $4,367,500 ·were made.

Farm work during the month made good progress under
the stimulus of generally favorable weather. The picking
of cotton and the seeding of small grains are well advanced
and farmers in many sections are making fair progress with
plowing operations. There is a good season in the ground
in practically every section of the district. Ranges and livestock are in excellent condition. Livestock are general! y
fat and there is an abundance of feed and pasturage to carry
them through the winter.
The November production of crude oil in this district
again established a new high record but drilling operations
showed a tendency to decline toward the latter part of the
month. The total output of crude oil for the month exceeded 20,000,000 barrels, as compared to 13,000,000 barrels in the same month last year and indicates the extent
to which the district's income from this source has increased .
Construction activity reflected a marked decline during
November. The valuation of permits issued at principal
cities was not only 48 per cent less than in October but
was the smallest reported for any month in four years.
Production, shipments, and new orders for lumber and the
production and shipments of cement showed a seasonal
decline.
There was a general decline in employment during t.he
month which resulted in a surplus of some classes of labor.
A reduction in working forces was registered in such industri es as lumber, iron and steel, stone, glass and alay
products, food and kindred products, and paper and prmting establishments. On th e other hand, increased forces
were noted at department stores, chemical manufacturing
plants, oil refineries and cottonseed oil mills. There is
still a sl)6rtage or farm labor in some sections but the
demandTor this class of labor is gradually declining.

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

MONTHLY BUSINESS REVIEW

2
CROP CONDITIONS

Weather conditions have been generally favorable for
field work during the past thirty days. As the picking of
cotton is nearing completion in many sections of the dis·
trict farmers are turning their efforts to the seeding of
small grains and to the preparation of the soil for 1927
crops. Seeding of wheat and oats made good progress and
in most sections this work is well advanccd. Reports indicate that the acreage sown to these crops is being considerably increased this year. Farmers, generally, are progressing rapidly with plowing operations. Wheat and oats
made good growth in nearly all sections although their
growth was retarded in a few localities by dry weather.
However, the general rains during the first week of December supplied the needed moisture and considerable improvement is taking place in these localities. There is now
a good season in the ground in practically all sections of
the district.

Movements
and Prices

Receipts of cattle and calves at the Fort
Worth Market during November showed a
moderate gain over those for the previous
month but were less than a year ago. Hog receipts showed
but little change. There was a heavy decline in sheep
receipts as compared to October and receipts were considerably less than in November last year.
Cattle prices evidenced a mixed trend during November.
Fat cows were in demand throughout the month and prices
WOl ked to a higher level but prices on canners and cutters
were slightly lower. There was a weak demand for beef
steers and the market reflected a downward trend. Calf
prices, after declining during the first three weeks of the
month, turned upward due to the smaller receipts and a
stronger demand. The downward trend in the hog market
which developed during the last half of October continued
throughout November. Sheep and lamb prices were slightly
lower.
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Citrus fruits are maturing favorably and large shipments
of both citrus fruits and vegetables are moving out of the
Ri1> Grande Valley.
The final cotton report issued by the Department of Agriculture placed the 1926 Texas cotton crop at ~,900, 000 five
hundred-pound gross weight bales which exceeds by 948,000 bal es the largest crop previously harvested. The average yield of this year's crop is estimated at 154 pounds per
acre, which compares to 113 pounds per acre in 1925, and
is the largest per acre yield for any year since 1920. The
yield during the latter year averaged 174, pounds per acre.
Picking has made good progress and is now about completed in all sections except in North and Northwest Texas.
Prior to December 1, there had been ginned in Texas 4,,64,7,920 running bales. It is estimated that 81.3 per cent of
the crop had been ginned prior to December 1, as compared
to 89.4, per cent in 1925 and 82.5 per cent in 1920. Late
in I ovember the high winds damaged much of the cotton
remaining in the fields in Northwest Texas. In nearly all
sections, due to the scarcity of pickers, a large proportion
of the remaining cotton is being snapped and in the Northwest many of the farmers arc sledding the cotton. In the
lalter section gins arc running day and night. Practically
all of the remaining cotton will be of a 1m\' grade. Colton
picking is about completed in North Louisiana and is making good progress in Southeastern Oklahoma.
LIVESTOCK
There was a slight deterioration in ranges in some sections of the Eleventh dish·ict during November on account
of the dry weather, high winds and frosts. The dry weather
affected a few counties in West, Central West, Central and
South Texas and parts of Southwestern New Mexico, but
the heavy general rains early in December supplied the
needed moisture. Winter weeds and grasses have a good
start and small grain pastures and fields are furnishing an
abundance of pasturage. Every section of the district has
a surplus of feed. In fact, it is reported that the feed
situation is the best in many years. The condition of cattle
showed a further improvement and nearly all classes are
fat. Trading on the ranges has been active due to the
demand for re-stocking purposes. Prices at which cattle
0!1. the ranges have been changing hands have been steadil y
nsmg.

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FOR'l1 WORTH LIVESTOCK RECEIPTS

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1926
Bee! steers ..... _ ..._........................ . ............. $ 8.75
Stocker steers .................... ........ ..... _.. ...... 7.65
Butcher cows ...... _................. _... _.................... 6.00
Stocker cows .... ........ . ...... _. .... .... .... 6.00
Cnlves .. ..... ... ..................................................... 9.76
Hogs ....................._............ _......... _................. 13.60
Shee)
........ ....... .............................•............. ... 8.00
Lnmb. . ......... ........... ...... ........... ........... .. 18.25

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1925
$ 7.50
7.65
5.25
8.~5

8.50
12.50
9.25
1(j.00

1926
$ 9.00
7.75
0.00
6.00
11.25
14.70
8.25
18.25

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Cotton
Movements

Receipts of cotton at Houston and Galves·
ton during November continued to show
large gains over those of a year ago. The
combined exports from these ports also reflected a substantial gain over the corresponding month last year. The
November exports from the United States totaled 1,486,224
bales which was 23.2 per cent large. than those for Novem·
ber, 1925. Domestic consumption of cotton in November
was 2.7 per cent greater thau in the previous month and
7.4, per cent larger than in the same month last year. Cotton held in consuming establishments on November 30
showed a substantial gain over that heid un October :11 and
was slightly greater than on November 30, 1925.
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COTTON MOVEMENTS THROUGH THE POR'l1 OF GALV~STON
Nov.

Nov.

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Aug. 1 to Nov. 80
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This
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MONTHLY BUSINESS REVIEW

3

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Nov.
1926

Nov.
1925

A ug us t 1 to November 30
This
Las t
Season
Senson

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UNITED STATES
N
Aug us t 1 to N ovember 30
ov
This
Last
1925
Senson
Senson

Nov.
1926

2 01 3 8 n S
'
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1,04 6,260
1,008.02l
............
.....__.
1.497,844
1.457 ,46 6 :
:
........... .
............
6,292,149
6,074, 084
............
.... _....
6,517,565
6,206 ,562 E
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Cotton consumed ............. ................... ...... ......... ..... ......... .......
Cotton on hand November 80
(a) in consuming establishments..................... ... ........
(b) in public storage nnd ccimprcsscs..... ....... ........

425.490

382 ,438

1,600,673

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Great Brita in ................................................. 82,6 00
France .......... .............._....................................... 25,000
other f oreign ports .................. ..................... 91,000
For coa stw ise ports ......_................... .................. 2 ,00 0
In compres ses and depots ._ ..........................._ .. 570,91 6
~

Total

........................:...... _.... ................. _... _.... 72 1,4 16

2,000
1,800
18,800
3.000

1,383.4 66

683.960

543.4 83

2.224 ,239

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SEASON'S RECEIPTS. EXPORTS, AND STOCKS AT ALL
UNITED S,!ATES PORTS
A u g u. t 1 to November 80
This SeMon
Last Season
R eceip ts
.... ........... .. ....._................ _...... 6,74 0.1 85
6.212,711
1.088.798
E x ports : Greut nri tain ....._................... 1.081,867
Frltnce
......... _...................... _ 451,810
417.685
Continent ......... _....... __ ........... 1,926,496
1,706,6tl
;rapnn- -China .................._.. 52H, 678
454,650
Mex ico
. ....... .......... .....
8.156
18.44 8
...... 8,936.907
8,681.1 92
T otal foreign ports

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Cot t onseed crush ed
( tons) ............. _..
775.000
Cot tonseed 011 hand
(tons l .. _..............
478.000
Crude oil produced
(pound. ) . .........._219.104,000
Cake and Meal produ c~d (tons ) .....
36 8,000
Hulls llr oduced (tons )
22 6,000
Linters produced
(600-lb. bales). _
128, 000
Stocks on hand
Nov. 80:
Crude oil (pounds ) 26,988.000
32 ,000
Oake and meal (tons )
Hulls (tons )
106.000
Linters (500-lb. bnles )
55 ,000

620,000

2 , 4~ 7,0 0 0

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3.563.000
2.22 7,000

384.000

1.387,000

1,867,000

174,064,000

796.637.000

642,988,000

292,000
176,000

1.102,000
701,000

1,088.000
616,000

11 6, 000

409.000

416,000

15, H 2.000
52 ,000
72 .000
32.000

8'6, 614,000
176,008
22 6.000
192,000

69 ,94 9,000
221,000 E
187,000 E
127,000::

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TEXTILE MILLING
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SPOT COTION PRICES
(Middling B_a.sls)

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COTTONSEED PRODUCTS
As the crushing season advances, an in creasing volume
of cottonseed products is being shi'pped out by reporting
rottonseed oil mills of this distri ct. Due to the exceedingly
large supply of cottonseed, pri ces of both cottonseed and
cottonseed products showed a furth er declin e during No·
vember. The crude oil shipped by reporting mills declined
fr om $.0804, per pound in October to $.0734 per pound in
Novemb er; cake and meal dropped from $24,.20 per ton to
$23.4.2 IJer ton; hulls declined from $5.07 per ton to $3.85
P CI' ton, and linters declined from $.0319 per pound to
$.0248 per pound. There were 17] ,024, tons of cottonseed
purchased by these mill s during November at an average
price of $21.41 per ton, as compared to 185,923 tons pur·
chased in October at an average pri ce of $23.36 per ton.

Jncre.lsed activity 'at the reporting textile mills of this
district was in evidence during November. These mills'
consumed 2,582 bales of cotton during the month, as compared to 2,340 in October and 2,24,2 in November last year.
Their production am ounted to 1,164,182 pounds which
reflected a gain of 6. 3 per cent over the previous month
and 8.4 per cent over the corresponding month last year.
Unfilled orders on hand at the end of the month showed
but lillIe change from th ose on hand a month earli er, but
f<lo cks 0 '1 hand increased.
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N urn ber b u Ies consumed .......... _........ 2,682
Numbe r s pindles active .......
78,680
Number pounds cloth produced ... 1,164,1 82

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2.242
79,788
1,074,068

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2.340
72,580
1.094,796

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TEXTILE MJLLING STATISTICS

WHOLESALE TRADE
A general decline in the distribution of merchandise at
wholesale due largely to seasonal influences was noticeable
during November. However, sales in Lwo reporting lines
of trade- drugs and hardware- were larger than in November last year, and those for dry goods and groceries were
only slightly less. Reports indi cate that retailers are proceeding very cautiously and are restri cting orders to actual
needs. Nevertheless consumer bu ying has remained at such
a level as to make necessary a s ubstantial amount of replacement business. While the size of each order is small,
the total volume of these orders is large. In fact, the
volume of trade is being maintained at a higher level than
was generally expected foll owing the slumJD in cotton prices,
showing that the buying power of this distri ct has not been
impaired to the exteul that the ueclinc ill t.he pri ce of cottOil at first seemed to indicate. There i. a growing COll-

MONTHLY BUSINESS REVIEW

4

fidence in the soundness of the present business situation
and dealers generally are becoming more optimistic regarding the outlook for trade after the turn of the year.

ments to those actually needed for current operations. Prices
continued steady.

The demand for drugs during November was in a modThe distribution of dry goods at wholesale reflected a erate volume. Sales of reporting firms were 5.2 per cent
decline of 7_1 per .cent as compared to the previous month less than in the previous month but were 5.5 per cent larger
and was 2.6 per cent less than in the same month last year. than in the corresponding month last year. Some dealers
Merchants arc buyin g in small amounts but they are
report that they are receiving a large volume of orders but
making a large number of replacement orders which indi- ' that the size of the orders is smaller than at this time a
cates that retailers' stocks generally are not burdensome and year ago, indicating that retailers are buying only as the
that consumer buying is being maintained at a very satis- consumer demand develops. Prices showed no material
factory level under present conditions. November collec- change. Collections generally continued slow.
tions were substantially greater than in October.
The November sales of hardware at wholesale reflected
The November sales of reporting wholesale grocery firms a seasonal decline of 3.8 per cent as compared to October
were 9.9 per cent less than in October and 1.8 per cent less but were 11.3 per cent greater than in the corresponding
than in NovemJ)er, 1925. ,The slackening in demand was month last year. The demand for hardware seems to be
fairly general over the district but in some sections busi- holding up well throughout the district.
ness was better than a year ago. Collections during Novem- 8 11··, ··· ••• ,.......... ,1111 ••••••• ,111,.,1111 ••••••••• ,1"' •• ,1, •••• 1"'''1''1.,1 ••• ''.,1,.,1,.,1,.,111.,111111IIII"'[!]
ber were slow.
§
CONDITION OF WHOLESALE TRADE DURING NOV., 1926
::
The poor demand for farm implements evident during
the latter part of September and throughout October continued during November. Sales reflected a decline of 35.8
per cent as compared to the preceding month and were 54.2
per cent less than in the same month last year. Sales for
the five-month period from July 1 to November 30 this
year were 5.0 per cent less than during the same period last
year. Farmers appear to be restricting purchases of imp le-

-Net S&I08- -Net Sales- -StocksNov. 1926
July 1 to Date, Nov. 1926
eompared with Compared with compared with
Nov.
Oct. Same Period Nov.
Oct.
1925
1926
Last Year 1925
1926
Groceries ...................... - 1.8
- 9.9
+.3
+ 1.1
- 5.4
Dry Goods . ... .. ...... - 2.6
- 7:1
-11.0
- 13.1
-16.4
Farm Implements ..... -54.2
-35.8
- 5.0
+ 1.4
+ 1.8
Dru gs ............ . ........... + 5.5
- 5.2
+ 5.8
+.1
- 4.4
Hardware .................... + 11.3
- 3.8
+ 6.9
+ 1.3
- 4.2
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RETAIL TRADE
The appearance of more seasonable temperatures and the
increased tide of Christmas shopping were reflected in the
Noyember volume of business at the district's department
stores. Sales of twenty-four reporting firms were 5.1 per
cent below lhose for October but were 10.8 per cent greatcr
than in November a year ago. The decline from October,
however, was considerably less than is usually shown at
this season. Late reports indicate that buying during the
first half of December was in a large volume. Some of the
departments showing substantial increases as compared to
a year ago were: leather goods; men's furnishings ; women's
skirts; waists and blouses; furs; misses' ready-to-wear;
juniors' and girls' ready-to-wear; gloves; women's and childrens' hosiery; knit underwear; and infants' wear.

Stocks on hand at the end of November werc 2.4 per
cent less than at the close of October and were 9.9 less than
on November 30, 1925. While the sales of reporting department stores during the first eleven months of 1926 have
averaged 4,.4 per cent larger than during the same period in
1925, stocks carried by these firms have been smaller, resulting in a substantial increase in the turnover of stocks.
The percentage of sales to average stocks from January 1
to November 30, 1926, was 238.7 as compared to 219.0
in 1925.
Collections reflccted a seasonal decline in November.
The ratio of November collections to accounts receivable on
Novemher 1 was 36.9 as compared to 38.3 in October.

!!J'IIIII'III.III.I.IIIIII.IIIIIIIIIIII'IIIIIIIIIII'III'1'1111111"11'111"1"11"11'11111'1"11'1111,1"11111111111111111111111111 1 111 111111111, •• 1111,.1.,111111111,1.,11111111,111'111"111.,11,1111111,111.11,1,11",,111.lllllfl'IIIIIII.,IIIIIIII.,III.[!]

To"~::::b". "... .om,.",

November,
Jan. 1 to date,
Credit Sales:
November,
November,
Jan. 1 to date,
Stocks:
November,

w;"

No••mb".

",::~=_::_D_EPAR;+:12~:1{ ~:++s:1231~ H::t~-7'59 °i:~._-I:1 ~:5~ D1:0~+rih~':8~
..40:tb

1926, comp"red with O ctober, 1926 ..................................._
compared with same period last year ..................... _........... _

..675

192Q. compared with November, 1925 ............ _........_.... _.....
1926, compared with Octobe r, 1926 ..................................... "
compared with same p eriod last year ....................................

- 1.'1
- 12.2
+ 1.7

+21.2
None
+ 19.8

-1- 22.6
-1- 10.3
+ 8.9

+12.7
- 4.7
+ 5.1

+ 9.4
- 4.9
+ 5.8

1926, compared with Nove mber, 1925 .............................. _...
1926, compured with October, 1926 ................... __ ...............
Perce ntage of sales to average stocks in
November. 1925 ...................... " ......................... _....................... _..... _...... _
N ovembe r. H126 ........................................................................................__..

- 16.8
- 4.1

-- 6.9
.- 1.0

-

-

-

20.4
23.6

16.9
21.1

23.8
29.4

19.8
201 .8

19.9
24.1

210.4
231.1
5.3

224.7
232.0
3.2

234.6
256 .5
7.6

219.0
242 .8
4.3

219.0
238.7
5.0

32.0

87.8

42.3

42.2

86.9

Novemb~r,

Percentage of sales to average stock
January 1 to November SO, 1925 ................. ........... __ ........__ .. ____..........._
January 1 to November 30, 1926 ....... __ ...__ ..... __ ,, ____ ..... __.. ____ .. ______ .__ ..____ __
Ratio of outstanding orders to las t year's purchases ...____... _______ ...___ .. __ ... _. __
R atio of November collections to accounLs r eceivable due and outs tanding November 1. 1926 ................................ "........... _._,, __... .............

-

3.1

.8

8.3
2.4

:.i:::::

9.9
2.4

~11I1I .. 1I1I1I11I1I1t1l11f1IItIlIlIlIIlIl . . UII1II1II.IIIIIIIIIf"1111I111f1l11l1111 11 1 111111111111111111111111111111111111111""111111111111111111111111111111111111111111IIIIUIUIlIIlIIlIlIIlItIlIlIIlIlIlIlIlItIIlIlIlIlIlIlIlIlIl'UIIIIIIIIIIIIIII,1!l

FINANCIAL
The volume of checks charged to depositors accounts at November reflected a decline of 5.7 per cent as compared
banks in sixteen of the larger cities in the district during to the previous month but was 3.1 per cent larger than in

1
\

(

MONTHLY BUSINESS REVIEW
the corresponding month last year. As compared to a year
ago there were nine cities which registered increases, while
seven registered a decrease.
DEBITS TO INDIVIDUAL ACCOUNTS
(In Thousands of Dollars)
Nov.
Nov.
Inc. or
Oct.
1926
1925
Dec.
1926
Austin .................. $ 22,814
$ 19,082
$ 22,704
+ 19.9
Beaumon t ............. 22,471
16,722
28,991
+84.4
Cors icana ............
6,629
6,656
7,405
-1 0.5
Dallas .................... 226,271
285,195
286,908
- 8.8
EI Paso .................. 88,409
88,066
- 12.2
81,572
Fort Worth .......... 93,075
80,070
91,981
+16.2
58,890
Galveston ............ 54,125
62 ,7 68
- 8.1
Houston ............... 162,078
150,561
184,154
7.6
Port Arthur .......... 9,344
9,454
9,487
- 1.2
8,755
Roswell ................
8,904
8,775
+ 3.4
48,185
36,476
San Antonio ........ 42,783
+17.8
Shreveport ........ . 39,272
41,907
39,880
.3
10,819
Texarkana ..........
8,895
8,844
+ .6
'l'ucson .................. 9,897
9,871
9,799
1.0
19,886
Waco ........... ........ 19,076
21,786
- 4.1
33,782
Wichita Falls ...... 82,957
29 ,6<11
+ 11.2
§
Total, 11 th
:
District ......... 786 ,990
763,196
+ 8.1
884,216

+

+

Inc. or
Dec.

+

-

.5
6.3
.4
4.5
5.8
1.2
18.8
12.0
1.5
4.0
.S
6.3
18.8
5.6
12.2
2.4

-

5.7

-

+
+

-

The volume of these acceptances outstanding on November
30 amounted to $5,395,091.04" as compared to $5,110,722.4.5
on October 31, and $41,884~ 772.86 on November 30, 1925.
Acceptances executed against import and export transactions rose from $853,056.65 on October 31 to $3,511,040.80
on November 30, while those based on the domestic ship.
ment and storage of goods declined from $4,257,665.80 on
th e fonner date to $1,884,050.24 on the latter date . .
Condition of
Member Banks
in Selected
Cities

The loans and investments of member
banks in selected cities showed a substan·
tial decline during November. Their investments on December 1 were $1,84,7,000
less than on November 3 and loans during
the same period declined $3,176,000, the decrease being
about equally divided between commercial loans and loans
on corporate securities. The deposits of these banks also
showed a decline of $1,850,000, but their reserve deposits
with the Federal Reserve Dank rose $1,643,000, Their bills
payable and rediscounts with the Federal Reserve Bank
amounted to $11,211,000 on December 1, as compared to
$14,775,000 on November 3 and $9,54,3,000 on December 2,
1925.

+

-

5

+

!!I'.,"I •• ,III • • ••••••••••••••• • •••••••••••••• I ••• II •••• • , •• , ••• ,1111., ••• 1111 •••••••• ,1,.,11111.11111,.".,1111.,llllll lm

There was a further slight increase during
November in the volume of acceptances
executed by accepting banks of this district and which were outstanding at the close of the month.
Acceptance
Market

Su .IIIIU I II.I .,111111.1 •• U 111.111 ....... " U,.II fill 11111 III II .. 1111 ...... 111111111 ...... 1111111 .. 111111111111111111111111111.1 • • 11 1"11111 11111111111 .......... "'111111111111111111 ..... 1111111111 11 11.111 , ••• 111111

§
§
§

f

III f IIIIIIIIIIIIIIIII .. IIIIIIIII[!I

CONDITION STATISTICS OF MEMBER DANKS IN SELElC'l1ED CITIES
Dec. I, 192G
1.

Numbel' of reporting bnnks ...................................................................................... .................... _

:

Nov. 3, 1926

47

Dec. 2, 1925

47

48

~_i: I: g:~?,~&.}:~~~~~?t,~ffo~1i,&;~~.;~~~;:,~,,~~,;~~ ·,;nll:l!! •,;i:I!l:!!!
7. Net demand depo.its..................................................................................................... ....................
8. Time dcposits ..........................................................................................._.................. . .......................
9. Reserve with Federal Reserve Banlc........................................................ _....................................
10. Dills payable and rediscounts with Fedcral Reserve Bank....................................................

•
:
:
~

11.

~

271,870 ,000
99,815,000
30,282,000
11 211 000
"
91 %

Ratio of loans· to net demand deposits........................................................................................
·Loans include only items 4 and 6.

,;H~:!lI

272,266,000
100,769,000
28,689,000
14 775 000
"
91 %

284,792,000
96,168,000
80,817,000
9 548 000
"86%

-

§
:

~

I!l

were 6.2 per cent larger than on November 30, 1925. There

Savings
Deposits
8

_:1

:

(!]1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I11I1I1I11I11I1I1I1I1I1I1I1I1I1I1I1I1I1I1f 1 1111 U I" 11 11 H 111f 11l U 11'11'11 1 1111 H 11111 1' '111 1111111111111111111111111111111111111111111111111111111111111111""111111111111111111111111111111111111111111111111111111111111

Repprts from 92 banks in this district
which operate a savings department show
that on November 30 savings deposits were
lhree-ten Lhs of one per cent less than on October 31, but

§
E

were 256,884 savings depositors on November 30 as against
255,993 a month ago and 239,770 a year earlier.

1 1111111111111111111111111111111111111111111111111.111111111111111111111 1 1111111 1 11111111111111111111'11111111 1 111111111111111111111111111111111111111 11 111111111111111111111111111111111111111111111111111111"111 11111111I 11 111111 11111 1 1111111111 11111[!l

§

•

~: .:

SAVINGS DEPOSI'l'S

:

Number of November 30, 1926
Novembel' 80, 1925
R.cportinll'Number of Amount of Number of Amount of
Banks
Savings
Savings
Snvings
Savin gs
Depositors Deposits Depositors Deposits
B ~aumont

Dallas

........................................................................
.................................. ....._................. ...................

£1 PRS/)

........ ...... .....................................................

Fort Wortn ....................................................................
Galvt'8ton .............................................. _........................
Hcuston ........................ _................................................
San Antonio ..................................................................

~~~;~~.~~.~ . . :::::::::::::::.:.::::::::::::::::::::::::::::::::::::::::~::::::::::

Wichita Falls ................................................................
All Others ......................................................................

TcJtaL ................._.................................................... _
~_ bank. i n Bcoumolll" 12 ban!<R in Hous toll ,

4·
6
3
3
2
13·

(;

6,563
49,118
17,459
14,496
11.213
61,178
27,486

2
45·

6,812
85 ,1 95

~. 2~:m

92

a banks

$

2,312,442
18,039 ,475
5,726,183
5,861 ,654
6,942,541
26,942,396
12.851,763
J

4,865
44,280
17,083
13,768
11,383
65,681
24,371

~:~~~:~~~ 2~:i~~

2.008,081
16,726,151

5,145
35,424

$

Inc.
or
Dec.

October 31, 1926
Number Oof Amount of
Savings
Savings
DeJ)Ollitors Deposits

2,302,918
16,591,752
5,547,796
5,298,294
6,577,068
24,880,407
11,667,392

+
.4
+ 8.7
+ 3.2
+1 0. 6
5.6
+ 8.3
+ 10.2

2,098 ,489
16,707,752

+ 28.9
+
.1

6,265
48,893
17,884
14,448
11,218
62,073
27 ,192

+

1~:m:m "+ 4:~

2~:m

5,384
35,088

$

I~:.

2,317,714
17,848,046
6,948,568
5,690,462
7,048,807
26, 889,432
12,821,890

.2
+ 1.1
- 3.7
+ 8.0
- 1.5
+
.2
+
.2

2,636,865
17,804,987

+ 2.3
- 1.8

1k~~~',~~~

~

Dec.

..f°t~

256,884 $118 ,467,896 289,770 $106 ,888,867
-I- 6.2 255,998 $118,817,759 - .8
in Shreveport a nd 42 banks in "All other." reported the number of savings depositors.

§

[EJIIIIIIIIIIIIIIIIIU.,.IIIII.IIIIIIIIIJIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIII11111 ... 111 .. 1111 .... 1 ........... 111111111 '1.1 ... 1111111111111 .. 111111111111111 .. 1.111111111111.1111111111111111111111111111111111111111111111111111111111111111111111111111119
(!) : IIIItIlHIIIIIUIIIIIIIIIIIIIIIIIIIIIIII IIU'U U'UI:lII •• III"IIIIIIIII1II1I1I1U'1111111111111111111111111111111111111111111111111111111111111111111111111111111111 11 ""111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIII I IIIIIIIIIIIII III'II IIIIIJI(!)

~

DECEMBER DISCOUNT RATE

g

!lnllas

EI PMc!

Houston

San An ton io

~ Rate cha~gcd customers on prime commercial paper such

§

R~"!~\.~°R'etligible . for redls~oun~~~d~.~... ~~e...~~.~.~.r~~.

:

Rnte charged on loans tel other banks, secured by bills
receivable ......................................................................................
§ Rate on lonns secured by prime stock exchange or other
:
currcnt collateral (not including loans placed in other
§
markets through correspondent banks) :
:
(a) demand .................................... _.................. _....................
~ Rnte (~~ t::~m~·dity j;~P;;;..~~~~;ed .. ;~;~h;;~~.. ;~~i;t;;;

g

..

b;;..

~ R:~' o~.. ~~'iti~ ..i~~~~::::::~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

§

Prevailing rates
Fort Worth

Waco

- - - - -- 4 V:,-6

8

6-7

6

6-7

6-6

G-7

8

6-7

G-7

8

~~~

6:ig

5-G

6-8

6%-7

5-6

5·6

5-6

6-8

6-7

6-7

5-6

6-8

6-7

t~

~:~

§
§
§
:

§
§
:

§

t:

. .~.~~

:

~

~

91111111111 .. 111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1IIIIII II IIIIIIO,I 1IIIlJI1I 111 111 1" , 1 U IIIIIIIIIIIIIIIH,," II1 I""I111 11 111111 11" II I " 11111111111111111111111111111111'''IIIUlllllllllllllllllllllllrE,

MONTHLY BUSINESS REVIEW

6

Deposits oj
The co mbined deposi ts of member banks
Member Banks showed a further increase of $9,891,000

December loans showed a further decline of $5,277,728
and on the 15th of the month stood at $8,689,84.2 or $508,·
618 below those on the corresponding date a year ago.

between October 27th and November 24.th,
but on the latter date they were $39,911,000 less than a year
earlier. The major portion of the increase in November
occurred at banks in cities with less than 15,000 population.

Due principally to the large reduction in loans, total
bills held by this bank declined from $34,4,75,897.71 on
October 31 to $28,005,238.62 on November 30, di stributed
as follows:

91111111111 .. lIlIlIlIllIlllIlllllIlllIlIllIllIllIlIllIlIlIlIlIltlllllllllllllllllllllli1111111111111111111111111111111110

::

:~.

: :~

Total
emand

••

g

;:

~

DEPOSITS OF MEMBER BANKS

Nov. 25, 1926 .._........
Dec. 28, 1926 ................
Jan. 27. 1926 ............ _
Feb. 24, 1926 ............ __
Murch 24, 1926 ...........
April 28, 1926 .............
May 26, 1926 .... _._....
June 28, 1926.... ..........
July 28, 1926 . _ ........_
Aug. 25, 1926 _ .. _
Sept. 22, 1926 ................
Oct. 27 , 1926 ................
Nov. 24, 1926 ...........

674,607
668,749
669,818
664,008
687,892
606,846
598,488
588,075
689 ,748
584,468
612,884
626,664
685,704

IBanks in cities Bani,s in cities
Total with a popula. with a popul,,tion of lees
tion of ove,·
Time I than ~?~O._ _.1_~ :.~0 __
Demand Time emnn<li Time
166,8211822,218
168,290 . 816,648
167,880 808,899
171,024 808,860
169,169 287 ,084
166,668 272 ,389
166,099 266,613
166,827 259,630
165,299 262,499
165,277 257,886
165,782 275,780
164,972 281 ,080
165,718 287,418

46,190
H,446
44,722
45,557
46,178
44,633
45,085
44,937
45,628
46,407
46,640
42,998
44,194

852,294
852,106
350,914
360,658
360,808
833,456
382,870
328,445
327,249
826,677
387,054
845,474
348.291

Member bank collateral notes secured by U. S. Governm ent
obligations ...... __ ."" .......... ........ _.. .__ ... __ ..... __ .................... $ 4,106,450.00
R ediscounts and all other loans to member bnnks ..................... 9,861,119.87
Open m'!rket purchnses (Banker's AcceptancesL ... __ ........ __ ......... 14,037,668.76

:~

Total bills held ........... ........ __ ..................... __ ............ $28,006,238.62

120,631
118,844
122,608
126,467
128,981
121,035
120,014
121,8UO
119,671
119,870
120,092
121.974 •
121,619 :

tElI.IIIIIII ...... IIII.' ••• III .. I.' ••• II.'."IIIII'.'.' ••• II.11111,11111"1111111111'"111'111111111111111111'1111"'1111'0

There was a substantial decline· during
November in the borrowings of member
banks at the Federal Reserve Bank. Loans
on November 30 amounted to $13,967,570 as against $19,·
709858 on October 31 and $10,852,751 on November 30,
1925. The reduction of $5,74,2,288 during November was
about equally divided between liquidations of banks in
reserve cities and of country banks. At the end of Novem·
bel' there were 134 borrowing banks as compared to 221 a
month earlier and 67 a year ago. During the first half of
Operations of
the Federal
Reserve Banlc

The actual circulation of Federal reserve notes amounted
to $4.9,310,490 on November 30, as compared to $50,34.9,715
on October 31 and $4.7,830,620 on November 30, 1925,
The daily average of reserve deposits of member banks
amounted to $59,577,442 in November as against $59,025,442 in October,
FAILURES
The di&trict's business mortality rate again showed a sharp
increase during November. Failures were more numerous
than in any month since January of this year and the indebtedness involved was the largest recorded since May,
1925. While the trend of failures is usually upward at this
season, the increase this year was more marked than in the
two preceding years. There were 95 failures in November
with liabilities amounting to $1,543,071, as compared to'
58 insolvencies in October with an indebtedness of $1,181,071 and 71 defaults in November, 1925, which owed
$995,237,

PETROLEUM
With a gain of more than 30,000 barrels in daily average
yield over October's output, production of crude oil in the
Eleventh district surpassed all previous monthly records
during November. There were 20,54.8,710 barrels of oil
produced during the month, as compared to 20,287,676 barrels in October and 12,815,54,5 banels in November of last
year. However, a general slowing down occurred in drilling activities, which was due in part to the weakened market with an added effect in some parts of the district of
cold weather. Drilling operations in November resulted
in 867 completions of which 566 were producers netting
174,604 barrcls of new production, as compared to 1,068
completions in Octob er of which 726 were successful
yielding an initial flow of 259,703 barrels.
The Texas fields produced 18,829,020 barrels of oil duro
ing the month, as compared to 18,510,446 barrels in October, representing an increase of 30,523 barrels in daily

average production. North Texas and Central West Texas
registered the largest gains in daily average output, and,
while East Central Texas and Gulf Coastal fields showed
slight increases in daily average, yield due to the shorter
month, their total production was below that of October.
The Panhandle district reached a new high level in daily
produ ction and field work and continued to lead all other
sections in total output. However, field work in this area
started declining during the latter part of November. Substantial production increases were made in Crane and Upton
counties of Central West Texas during November, while
production of the Spindletop field, located in the Gulf Coast
district, declined slightly from its October fiaUl·e. After
showing an increase in October over the previo~s month for
the first time in five consecutive months, production of oil
in the North Louisiana field again declined in November,
the month's yield being 1,719,690 barrels, as compared to
] ,777,230 barrels in October,

[!JIHlllltl 1 11111111I L1 I1U'IIIIIIIIIUlIlIlIllIlllIlIllIlIlIlIlllIllIlIlIllIlllI.1I1'IIIIIIII"IIIIIIIIIIIIIIUI(III1I1II1I1II1I1I11 I I I I I I ' ' ' I I I I I I I I I I I I ( I I I I I I ' ' " I I I I I I I I I I I I I { I I I I H I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 11111 HIIIIIIIIIIIIIIIIII IIIIIIUI!J

:.~_

OIL PRODUCTION
November
North Texns .......................................................... __ .... _
Central·West Texns ....................................................
East-Central Texas .................. __ .............. __ ................ .
'Dexas Constal ...................................... __ ...................... .
Southwest Texas .................... __ ................................... .
Total, Texas ..................................................... ..
North Louisiana ....................... __ ...__ ........................... .

Total
8.004,190
3,OOl,18U
1,697,220
4,848,490
1,277,940
. 18,829,020
1,119,690

Daily Avg.
266,806
100,039
56,574
161,617
42,598
627,634

57,S2~

Octobe,'

Increase or Decrease

Total
7,657,780
2,824,720
1,727,196
4,933,a40
1,367,410

Daily Avg.
247,025 Inc.
91,120 [nco
55,716 Dec.
159,140 Dec.
44,110 De" .

18,610,H6
1,777,250

597,111 Inc.
fi7,SSO Dc.

Total
346,410
176,460
29,976
84 .850
89,470

Inc.
l'nc.Inc.
Inc.
Dec.

318,674 Inc.
07,540 Dec.

Daily Avg.
g
10.781. ;
8,919:
858:
2,477:
1,512 E

~§

7;
---:
Totnl, DistricL....................................................
684,957
20.287,676
65-1,441 Inc,
261,03·1 Inc.
30,616 g
{!]UIIIIIIIIIJlIIIIIIIIIIIIIIIIIIIIIIIUIIIHIIIIIIIIII I II1 1 1IUIIIIIJIIlIlIl1111i 1111111111 1111111111111111111111111111111111111111111111111111111111111111111111111111111"11"1 II II UII II II 111 ' 11'"11111111111111111111111111111111111111111 111111 1111.' [EJ

-20,548.710
--

MONTHLY BUSINESS REVIEW

per cent below normal in October. Production at the mills,
however, was only one per cent less than October production, being 16 per cent below normal in November, as
compared to 15 per cent in October. There was a large
reduction in new orders received at the miils during November, being equivalent to 72 per cent of normal production
as against 80 per cent during October. The decline in shipments and orders was due in part to seasonal influences, as
retail establishments generally reduce their stocks to a
minimum before the close of the year. Stocks held at the
close of the month were 21 per cent below normal stocks
for that date, as compared to 25 per cent below normal on
October 31. Unfilled orders on the books of 52 mills on
November 30 amounted to 4,9,169,050 feet, as compared to
55,4.06,502 feet on the records of 4.9 mills at the close of
October.

NOVEMBER DRILLING RESULTS
Com.
Fieldpletiona
North Texas
426
Central· West Tcxas ... .. 228
East-Central Texas .... 11
East Texas ...................
6
Texas Coastal ._....... .... 71
Southwest Texas ._...... 20
Tcxas Wildcats ............ 89

Producer.
816
144
8

Total Texas ....... _......... 796
North Louisiana .. ,....... 72

686
81

Nov. Totals. District ... 867
Oct. Totals. District ...1.068

666
726

Gas
Well.
9

12

Initial
Fall·
urea Produ.et40n
101
60.671
67
M.179
8
2.810

4

62
11

1

19
86

71.248
1.586
1.078

84
7

226
84

171.666
8.088

41
89

260
808

174.604
269.708

9

4

ml •• III • • IIIIII.II •••••••••••••••• I.I.I.IIII •••••• • ••• 11111111 •••••••• 111111.11 • • 1111111111,.,.11.,111111".111 111 11 11 " 9

·[E] I... II ....... UIlIlIlIlIlU .. IIII .... UIlIlIlIU I U .................... UIIlIlI ... II .... 111111111 ..... . 111111 .. 111111 ..

Dl~c268.

CRUDE OIL PRICES

!::::.:.

8

Dti269•

Te,,"s Coastal (Grade "A") .............................................$1.40
$1.60
North and Centrlll Texa s a nd North Louis iana
(62 gr. and above ) . ................................_............. 2.70
•
·Prices for December 8. 1926. not available on a comparable basis.
001111111111111.111111111111111111111111.,.1.1.11 1 11 •••

7

9

, 1111I1I1I111I1I11I11I1I1I1111111I 11I1I1I1'''I IUU&lIIIII IIII I IIIIIIIII'11 11 •• UIlI I IIlI •• IIIII .. ItIlI ....... flllIlIlll!]

~:.

" '1111'1"1111111' 111 ' 1'11111111111111111'111""11'1III II I'I""~

NOVEMBER PINE MILL STA1'ISTIOS
Number of reporting mills................ ......................
62
Production ........... _.................................................. ..... 98.600.899
Shipments .................................................................... 96.099.411
Orders .......................................................................... 83.912.011
Unfillcd orders. Novembc l' 30............................... 49.169.050
Normal production ........................................ .. .......... 117.015.900
Stocks. November 30 ................................................ 257.486.884
Normnl stocks ..._....................................................... 827.692.688
Shipments below not mal production .................... 21.916.489
Actual production below normal... ..................... .. 18.416.001
Ordcrs below normal production .......................... 88.103.889
Stocks below normal... ............................................... 70.106.804

(Oil statistics compiled by The Oil Weekly. Houston. Texas.)

LUMBER
There was a sharp decline in shipments of lumber from
the Eleventh District pine mills during November, as compared to the previous month. Shipments in November were
19 per cent below normal production, as compared to 13

feet
feet
fe et
feet
f eet
feet
feet
feet--19 %
feet- 16 %
feet- 28 %
feet--21 %

011111111111111111111111111111111111111111111111111111".,IIIIIIIIIII .. lIlIh " UttIl I IU IIIIII II IIIIIIIIIIIIIIIHIIII ' rEI

BUILDING
Construction activity reflected a sharp decline during
November. The valuation of permits issued at twelve principal cities totaled $4,460,4.07, which represents a decline of
4,5.7 per cent from October and 23.6 per cent from November, 1925. In fact, the total value of permits issued at these
cities during the past month was the smallest for any month
since November, 1922. It will be noted that the va lu ation

of permits issued at each reporting city reflected a sub·
stantial decline from October, ranging from 7.6 per cent at
Beaumont to 78.5 per cent at San AnLonio and only five
CItIes showed a gain as compared to November, 1925. The
valuation of permits issued at Lhese cities during the eleven
months of 1926 was 1.9 per cent greater than for the same
period last year.

!l.mr,.DING PERMITS
November.
1926

November.
1926
No.
AusLin ................ .
Beaumont .............
Dullas ...................
EI Paso ...............
Fort Worth ........ .
Gnlveston ........... ..
Houston ....... _.... ..
Port Arthur .......... .
Snn Antonio ...... .
Shreveport .......... .
Waco .....................
Wichita Fall........

~

Thtal

................

Valua.tion

27 $ 28.084
164
238.224
.78.SM
879
60
39.803
805.400
278
03.962
284
461
1.680.263
66.758
107
484.185
27!l
194.621
24
43.418
110
462.615
-

$4 ••160.407

No.

Valua.tion

$ 187.276
172.871
1.827 .107
81.589
894.240
118.628
1.816.880
88.149
802
889.080
268
804.868
81
86.667 .
428.279
160
29
111
862
66
210
292
893
119

2.888

$6.889.908

October.
1926

Inc. or
Doc.

-

85.0
84.9
- 78.8
- 61.8
+104.8
- 17.2
+ 16.2
75.0
- 46.5
- 86.2
- 49.8
8.0

+

+
+

-

28.6

Valua.tion

No.
43
171
824
44
842
269
418
119
238
266
88
148
2.899

Eleven Months
Inc. or
Dec.

64 .175
252.272
1.424.046
52 .288
904 .696
126.236
2.068.147
SM.799
2,256.125
242.952
67.000
684 .422

-

56.2
7.6
66.4
24 .8
11.0
26.6
26.0
24.8
78.5
19.9
28.8
82.4

$8.221.006

-

45.7

$

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1926
No.

t

1926

Valuation

No.

Valuation

468 $ 1.113.918
1.865
1.877.963
8.976 15.640.016
669
1.099.600
8.620 16.044.998
2.882
8.148.200
6.Z07 26.044.692
1.829
1.244.102
8.110 18.808.687
6.207.460
406
1.071.640
1,768
9.118.193

602 $ 1.791.4 69
1.786
1.587 .617
6.098 26.071.780
732
2.1 22.167
2.490
8.279.077
8.212
1.699.782
6.876 ' 29.336.895
1.480
1.016.54 8
8.690
8. 886.306
2.815
6.104.160
626
1.816.091
1.550
6.498.496

$94.91 4.208

29.750 $98.109.228

Inc. or
Dea.
-

37.8
18.S
40.0
48.2
98.8
96.6
11.2
22.5
40.8
2.0
- 41.0
+ 66.8

+

+
+
-

+
+
+
+

1.9

§

l llll l lIIU .. IIIIIII.11I111111 .. 11I1 .... IIIIIIII II II.IIIII.III'III" .... "111I1111118

CEMENT
For the fourLh consecutive month the production of Port- vember were 3.8 per cent less than in the previous month,
land cement at Texas mills reflected a decline as compared but were 26.7 pel' cent greater than shipments during Noto the previous month. There were 4.02,000 barrels of vember, 1925. Stocks held at the close of the month concement produced in November, as compared to 4,28,000 bar· tinued to decline, being 6.2 pel' cent below stocks on hand
l'els in October and 396,000 barrels in the corresponding at the close of October and 13.6 pel' cent less than on
l11.onth of last year. Shipments from the mills during No- November 30, 1925.

T·""""·.'"'' '"' '. '''''·"""''''''''·''''''''':~'~~~~;~;.'''~~'~;'~~~;~:"~~~"'~~~~~;. .~;";~~~~~."~~~;;~...;~.~~~~;~;"I"" "I'IIIIIIIII'I'"II'III"I"llllllllllE
~.:

§

Production at Texas Mill.........................
Shipments from Texas mllls .................__
Stocks at .,nd of month at Texas mill....

::
•
(!] '1'11 11111 1 111111 .111.111.' 1'11 11 111'1 I. 1111 f •• ,,1'111 •• 111 1.11.1. 11111111111 11 "

November.
1926
402.000
42'7.000
881.000

November.
1926
896.000
SS7.000
441.000

Inc. or
Dec.
+ 1.6
+ 26.7
- 18.6

October.
1926
428.000
4H .OOO
406.000

Tnc. or
Dec.
.. - 6.1
- a.8
- 6.2

Eleven Months
Inc. or
U26
1926
Dec.
4.622.000
4.410.000 + 4.8
4.726.000
4.869.000 + 8.4

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:
:
:
II 'I' 'I"IE]

MONTHLY BUSINESS REVIEW

8

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(ComJ)i1~d

by the Federal R eserve Doard ns of December 23. 1926)

Activity in manufacturing indusLries decreased in November and December, while production of important minerals
continued at a high level. Wholesale prices declined to the
lowest level in more than two years. Firmer money conditions in December reflected the usual seasonal requirements in connection with holiday and end-of-year activity.
PRODUCTION

Factory employment and pay-rolls declined in November
reflecting decreased activity in many important industries,
but owing to the large output of minerals, the Federal Reserve Board's index of production in basic industries advanced somewhat during the month. Production of bituminous coal and petroleum in recent weeks has exceeded
all previous records, and output of copper and zinc during
the month oJ November was in unusually large volume.
Pig iron production also increased slightly in November
but steel mill operations in that month and in December
were considerably reduced. Automobile production, which
is not included in the index of production in basic industries, declined sharply in November for the second consecuLive month and was smaller than in any month since
August, 1925. Textile mill activity was maintained dm:ing
November at approximately the same rate as in October.
The value of building contracts awarded showed less than
the usual seasonal decline in November and was slightly
larger than in November, 1925. Awards for the first half
of December, likewise, exceeded those reported in the corresponding period of last year.
AGRICULTURE

The Department of Agriculture estimates the value of
55 principal crops raised in 1926, on the basis of December 1st farm prices, at $7,802,000,000 compared with
$8,950,000,000 in 1925. Of the decrease in the value of
crops the decline in the value of the cotton crop accounts
for $580,000,000 and that of the corn crop for about
$260,000,000, while the total value of the wheat crop increased by nearly $4 0,000,000.
TRADE

In November distribution of merchandise at wholesale
and retail showed the usual decline from the. activity earlier in the autumn. Compared with a year ago, however,
wholesale trade was in about the same volume and retail
trade was larger. Sales of department stores were about 7

per cent larger than last year and Lhose of leading mail
order houses were six per cent larger. Stocks of merchandise carried by wholesale firms declined further in
November and were smaller at the end of the month than
a year ago. Inventories of department stores, however, increased slightly more than is usual in November. Freight
car loadings declined considerably in November and December from the record high levels of October, although
th e movement of coal continued heavy.
PRICES

The general level of wholesale prices declined in November and prices of many important basic commodities decreased further in the first half of December. The Bureau
of Labor Statist!cs Index of wholesale commodity prices for
November was 14.8, the lowest level since July, 1924,. Bituminous coal prices increased sharply during October and
in the early part of November, but in recent weeks have
declined by about two thirds of the previous rise. Petroleum prices have been reduced since early in November,
and Lhere have also been declines in pig iron, copper, zinc,
lead, and silver. The fall in prices of agricultural commodities, which has lasted with few interruptions for over
a year, continued in November. Grains, however, have risen
somewhat since the latter part of that month. The clothing
materials and house furnishings groups have declined steadily in price during recent months to the lowest levels of
the post war period.
BANK CREDIT

Loans and investments of member banks in leading cities
increased by over $100,000,000 during the four weeks ending December 15th, reflecting in part the growth in the
demand for cre?it and currency that usually occurs in December. The Increase was in loans on securities while
commercial loans declined somewhat from their s~asonal
high point in November. The volume of reserve bank
credit showed the usual seasonal increase after the middle
of November but was lower than in the correspondin rr
period of 1925 partly because there was a smaller increas~
this year in the amount of money in circulation.
Money market conditions became slightly firmer in December than at the end of November. Commercial paper
rales were unchanged but open market rates on bankers
acceptances adv~nced one eighth of one per cent and call
money on secunty loans averaged slightly higher for Lhe
month.