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MONTHLY BUSINESS REVI EW

-:

~

;;

Ee

OF THE

C. C.

_::1

iI

WA~~~~~~.~~ ~~ERVE BANK OF£!~~~~!~

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JA!lANS,

_----1-:----.:1

(Compiled December 15, 1927)

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Volume 12, No. 11

Dallas, Texas, January 1, 1928

This copy r eleased for pubJicaca tion in afternoon papers

Dec. 28

DISTRICT SUMMARY
t;l ••••••• ,•••••••••••••••• ,••••••••••••••••••••••••••••••••• ,., •• ,••••• 1 •••• 1••••••••••••••• ,., • • •••• • •••• , ••••••••••••• • •••••••• • •••• ,1 ••••• 1.1 •• , •••••• , .... , ••• , ••• 1 ••••• ,., •••• , •••••••• , ••••••••• ,11., .............................. . ...... 1 •••• , •• • •• e
THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
Inc. or Dec.
Dec.
6.0%
Dec.
4.4 %
$ 6.783.968
$ 11.077.419
Dec.
88.8%
58.5%
67.1 % Dec.
8.6 points
$ 7.843.869
$ 7.066.856
Inc.
11.0%
68
88
Inc.
78.9 %
$
818,200
$
551.658
Inc.
47.6 %
E
20,209,360
20,806 ,070
Dec.
2.9 % :I
::
82 %
88% Dec.
6 points 5
GJ 11 ... 111111 ... 11.11 ................. 1................... 11 .................. 11 ............................ 11 ........................... 111 ..... 11" ......................................................................................................[3
Bnnk debits to individua l accounts (nt 16 cities )........................................................................................ .
Depnrtment s tore snles ................................................................................................................ ._...........................
R eserve Ba nk loans to momber ba nks a t end of month ....................................................................... _........
R eserve Bnnk rntio nt end of month .................................................................................... _........_..................
Building p ermit valuations at larger centers .......... _
..........................................................................................
Commercia l f nilures (number) ................................................................................................................. _......... __
Commercinl failures (linbilities ) ........................................................................................................ _....... _ .......
Oil p roduction (barre]s ) ..............................................................._..................... _..................._...................................
Lumber orders at pine mills (per cent of normal production) ....................................................... _..........

November
$828.691.000

October
$876.660.000

Failures in this district were more numerous than in the
previous month as is usual at this season but were con·
siderably smaller than a year ago.
The volume of building which reflected a steady decline
during the two previous months, showed a substantial in·
crease in November. The valuation of permits issued at
principal cities was 11 per cent larger than in October
and was 27 per cent greater than a year ago. The pro·
duction and shipments of cement were practically the same
as in the previous month but were substantially larger than
in November, 1926.
The general rains which fell over the major portion of
the Eleventh District during the first half of December
relieved the drouth and were very beneficial to small grains
and ranges. Dry weather prevailing prior to that time had
retarded the growth of wheat and oats and in some instances
the plants were dying. Furthermore, in some sections the
ground was becoming too dry for farmers to continue with
winter plowing. The dry weather, however, enabled the
farmers to complete the harvesting of crops in good condi·
tion and much earlier than usual. Fall plowing is well
The trade situation during November was affected by sea· advanced. With the harvesting of crops virtually completed
sonal influences and the unusually warm weather. Depart- and with the most of them either marketed or stored, it is
ment store sales showed a decline of 4 per cent as compared evident that the returns from this year's crops have been
to the previous month and were slightly less than a year exceedingly large. The farmers not only have ample feed
ago. In the majority of the reporting wholesale lines, sales for use in connection with the cultivation of crops in 1928.
Were smaller than in either the previous month or the same but they have also deri~ed large ~~sh ret?rns f~om. t~e money
~onth last year. Reports indicate, however, that during the crops. While the physlCal condItIOns ot the dlstnct s ranges
fIrst two weeks in December the demand for merchandise and livestock deteriorated somewhat during November, the
at retail has shown a considerable expansion due to the heavy recent rains have revived the ranges and livestock in most
volume of Christmas buying and the movement of winter sections will enter the winter in good condition. Reports
goods as the result of the cold wave. Present indications are indicate that there is ample feed to carry them through the
fhat the volume of retail trade in December will be very winter. Despite the fact that the market receipts of cattle
Jeav'y' Debits to individual accounts showed a seasonal during November and the early p~rt of Decem~er were the
beclme of 6 per cent as compared to the previous month heaviest in several years, cattle pnces rose to hIgher levels.
Trading on the ranges has been active at high prices.
ut were 7.6 per cent larger than a year ago.
A further improvement in the agricultural and livestock
industries and in the financial situation was in evidence
during the past month. Deposits of member banks which
amounted to $907,143 ,000 on November 9th established a
new high level, being $22,838,000 greater than on October
26th and $105,726,000 greater than on November .24, 1926.
Federal Reserve Bank loans to member banks on December
15th amounted to $5,632,396 which was $74,2,74,7 less than a
month earlier and $3,057,446 less than on the corresponding
date a year ago. The decline in these loans has been due
entirely to the liquidation of indebtedness by country banks
as loans to reserve city banks have increased. The large
increase in deposits has created a heavy demand for commercial paper, bankers' acceptances, and other forms of short
term investments to serve as secondary reserves for these
hanks. Despite the heavy allotments of the Treasury issue
of November 15th subscription to the December 15th issue
of 31;4 per cent Treasury Certificat~s of Indebtedness rose
to $47,345,500 against which allotments of $13,381,500 were
made.

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

MONTHLY DUSINESS REVlEW

2
CROP CONDITIONS

The open weather prevailing throughout the Ele~enth
Federal Reserve District during the past thirty days enabled
farmers to practically complete the harvesting of crops and
to make rapid progress with plowing operations. The de·
ficiency of moisture, however, retarded the growth of small
grains and reseeding in some instances will be necessary. In
some localities the winter grains had sufficient subsoil mois·
ture to keep the plants growing but in others the plants suf·
fered considerably. The recent rains which have covered
a large area of the district, have revived the small grains
and have been valuable for conditioning the soil for spring
planting.
The Department of Agriculture in its final report on cot·
ton production on December 1st estimated the cotton crop
in Texas at 4,280,000 (500·lb. gross weight) bales. There
had been ginned in Texas 3,882,000 running bales prior to
December 1st, which constituted 93 per cent of the estimated
production. It was estimated that 4 per cent of the acreage
in cultivation on July 1st was abandoned. The weather has
been very favorable for picking and pickers have been
plentiful. In all sections of the district except Northwest
Texas picking is about completed except the final scrap·
pings. In the Rio Grande Valley and in scattered localities
elsewhere there is some top crop as well as some late plant.
ings still to be picked. The crop has been gathered un·
usually early. In Northwest Texas most of the cotton below
the cap rock has been picked. As the result of the low
temperatures there will be more bollies than was expected
earl y in November.
Because of the open weather during the fall most of the
crop has graded very high, some localities averaging strict
middling. The staple, however, has not been so good as in
years of more rainfall and less insect activity. Weevils
have been more numerous than in any year since 1921 and
large numbers have gone into hibernation but a hard winter
would serve to reduce this menace to next year's crop
prospects.
Shipments of citrus fruit from the Rio Grande Valley are
in full swing and are reported to be unusually large. Spin.
ach, tomatoes, and mixed vegetables are also moving in
sizable quantities.

demand for stocker cattle is still in evidence and reports
indicate that buyers are taking the bulk of offerings at
good prices.
The condition of cattle ranges in Texas declined 3 points
during November to 82 per cent of normal and was 10
points below the conditiO'n on December 1, 1926. While the
condition of cattle declined 2 points as compared to that
obtaining a month earlier, reports indicate that cattle are
in fair to excellent condition to start the winter. The sheep
and goat ranges were 83 per cent of normal on December
1st which represents a decline of 6 points during November
but the condition of sheep declined on ly 3 points during the
month. Winter lambs are coming now and reports indicate
that prospects are good for a large crop. Most of the fall
wool clip has been sold at prices higher than those pre·
vailing a year agO'.

Movements
and Prices

The receipts of cattle and calves at the
Fort Worth market during November reo
fleeted a large increase as compared to
both the previous month and the same month last year. In
fact, cattle receipts were the largest of any month during the
past three years and those of calves were the largest since
October, 1922. While the arrivals of hogs and sheep were
less than the previous mon th, they were larger than a year
ago.
Despite the heavy receipts there has been a broad outlet
for cattle of all classes and prices rose to the highest . level
in several years. During the second week of December a
shipment of corn fed steers topped the market at $12.25.
There has been a strong demand for stocker cattle and
prices have risen to a higher level. The hog market, which
turned downward in October, continued to decline during
N~vember and the first half of December even though reo
celpts have been smaller. Sheep trading was restricted
owmg to the scarcity of receipts but the market was gener.
ally steady. Lamb prices have advanced, some choice spring
lambs selling as high as $14,.00.
t;'1 111 .. ..... U .... . IIII .. .. ..... UIl Il .. ..... UIl Il . IIIIII •• I ., IIIIIlIlIl ItI I IIlI1 • • , IlitrUII " I II I I " I " II"!' •• I IIII ,

§
::
;

§

::
::
:

November November
1927
Cattle .................. 119.391
Calves ................ 67.502
Hogs .................... 20.871
Sheep .................. 18.883

1926
89.254
89.855
20.072
17.732

Loss

01'

Gain
G 80.187
G 17.647
G
799
G 1.151

October
1927
94.163
63.316
21 .505
22.076

Loss

0"

§
::

Gnin ' ;
G 26.208 §
G 4.1 80 ::
L
634::
L 3.193 ::

FIfII IlIlIlIlIIlIlIlU .. IIIIIII .. IIIU ..... IIII IIU .. ... U IlIlI .... II .. U IlIl Il IIlIlIl •• 111 11 1111 1111111111 11 . 111111 1111 0

LIVESTOCK
The cO'ntinuance of dry weather during November and the
early part of December had an adverse effect upon range
and livestook conditions in practically every section of the
district. Grain pastures have suffered considerably from
the deficiency of moisture and stock in many instances have
been taken from the fields. Winter weeds and grasses have·
made good feed but they have been held back by the dry
weather. The recent rains, however, have relieved the situa·
tion over a large area of the district. The most unfavorable
condition prevails in West Texas and Southeastern New
Mexico. In most of these sections there has been a de·
ficiency of moisture since early summer and the prolonged
drouth has caused a shortage of grasses and other feed
stuff. Ranges are generally poor in these areas and in most
instances are lightly stocked. Shipments to market from
nearly all sections of th e district have been large but the
movement from West Texas has been the heaviest. Loral
trading has buen a~, ive in nlmost every section. The heavy

G

FORT WORTH LIVESTOCK RECEIPTS

COMPARATIVE TOP LIVESTOCK PRICES

Nov.

Nov.

Oct.

1927

1926

1927

~;oe:kes;e:f:er·~··=~·:.~~::~~~~~~:~·.~·.:::::·.·.:·.~::·:.·:::.~~·::::·.:·::.$~Ui

$ U~
$~~·.i~
Butcher cows ..........._......................................... 7.50
6.00
8.00
Stocker cows ...................................................... 6.80
5.00
6.75
Calves .................................................................... 11 .25
9. 75
11.75
Hogs ..........._......................................................... 10.00
13.50
11.75
Sheep .................................................................... 8.00
8 00
10.75
Lambs ............................... _................................. 14.00
13.25
13.25
8\1'111 .. 1111111 11 11 1111 11 .. ''' ..... 111111111 11 1111 .... 1111111 11 111.11 11111111.111I1I1 . I.,I I III I I I I II II..f I II I I.IIII I IIII.' "

Cotton
Movements

Receipts and exports of cotton through
the ports of Houston and Galveston duro
ing November showed a heavy decline as
compared to the corresponding month last year. The domes·
tic consumption of cotton during November, which amount·
ed to 625,680 bales, reached a new high level for that month.
It represents a gain of 2.1 per cent as compared to the
previous month and 7.2 per cent as compared to November,
1926. Consumption during the four·month period this
season was 12.4 per cent greater than during the correspond·
ins period last season .

MONTHLY BUSINESS REVIEW

8

@1I.,IIIIII.II.IIIIUIIIUI.II.IIIIUIIIIII.IIII1III.lIlIlIlIllIlfll.IIIII.II.1I11I1I1I'1I1I1I1I11I11I11I1I.1I.,IIIII'".IIIIIItIlIIlIlIIlIlIIlIlIlIlIIlIIlI.II.1I1I1I1I1I1 ......... II ...................... II ..............................................

E

i

Nov.

. -------··---..-

1927
468.696

Au¥~~S

Nov.
1926
426.129

~~nn c:::8~:,,(:rN~;-:-SO;(8) In consuming e s t a b l i s h m e n t s . .
§
(b) rn publio storage and comprOOse8_ _ __
8 ....... ,1, ......... " ••• ,., ......... ,11 ......... ,••••••••••••• ,1,." ............ ,••••••••• 1............................... 11 •••••• ".,.,."., ••• "

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~:
Nov. 30,
1926

For constwIse ports ....................... ·.... ···········-··········· 4.600
In compresses nnd depots ............, ......................~2

~

~~~ ~I~~~~e ~.I~.I~I.~:::: ::::::::::::::::::::::::::::::::::::::::::::::: ~~:m
For other foreign ports ............................... ·.... ········ 66.400
_

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0 •••••

:_I

:~ _

7~·g~~ E
~

'l'otnl ......................................................... _... 622,182
721,416 ~!
1311 •••••••••• c••••••• • , •••• I., ..................... •... •••• ............. ,............................,.................. .
,
,
1 •••••••• .................. ..........................

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ConON MOVEMEN::;;;,~~U~:;:::;.;.~~:;,: :~ g

_::1

489790
.
R ecmJlts ............................
.
Exports ..............................244.228
Stocks, Nov. 80 ......... ···_····

:::

:

706,846
893.421

1.848.188
867.316
972,052

811.............................................................................................

2,101.816
1.088.969
901,109
:

1••••••••• 1••••• ••••• ..

·S

COTTONSEED PRODUCTS
The average price paid fDr cDttD~seed by repDrting cDtt?nseed Dil mills declined slightly durmg the past mDnth, bemg
$4,3.12 per tDn during the week ending December 10th, as
cDmpared to' $44.08 during the we~k endi~g NDvember 12th.
The average price received fDr 011 declmed from $ .0925
per pDund Dn the latter date to' $ .0873 Dn the fDrmer date;
linters declined frDm $ .04i15 per pDund to' $ .0384 per
pDund. The average price received fDr cake and meal and
hulls, Dn the other hand, advanced. Cake and meal sDld fO'r
$39.27 per ton during the week ending Dece,mber 10th, as
against $37.83 per tDn during the week endmg NDvember
12th. Hulls advanced frDm $6.38 per tDn to' $6.81 per tDn.

rn ...
::
::

""IEI

SPOT COTTON PRlCES

::

~~hembcr ~~ De1~le 98.~:2 189 ~;:5 .

(Middling Basis
New York .......................................................... 21.80
New Orleans .................................................... 21.10
Dallas ..................................................................20.40
Houston .............................................................. 21.10
Galveston ............................................. _...........21.20

: : :_'

19.80
19.04
18.40
19.20
19.20

el.u ....................................................................,......................................,.. ,1,··0
TEXTILE MILLING
Activity in the textile industry declined in NDvember;
productiDn Df clDth was in smaller vDlume than in the
previDus mDnth and mills, generally, repDrted a dDwnward
mDvement in prices. There were 2,4,66 bales Df raw cDttDn
consumed, as cDmpared to' 2,889 bales in OctDber and 2,571
bales in NDvember, 1926. CIDth prDductiDn was 3.2 per
cent less than in the previDus mDnth and 12.9 per cent belDw
that in the cDrrespDnding month Df last year. Orders on
hand at the clDse Df NDvember declined and were less than
a mDnth earlier and a year agO', while stDcks shDwed an
increase Dver bDth peri Dds.

Cl .•.........
§

I •• I •••• , .........................................................................................., ••••••• Im

E

TEXTILE MILLING STATISTICS

:
:

-

November

:
:

November

October-

1,196,610

1.829.696:

I ~~:!:~~ ~~l~sdl~n~~ti~~:: : : : : : : : : : 7r!i~ 7~~~!! ~~~~~~ I

E No.
e .....

of pounds cloth produced ........ l.158.606

I .............. , ... I •• •• •••••• , •••••••••••••••••••• , ••• 1, •• "1 •••• , •• 1...... , .............................

"""'8

III ...... III1I1I1I1 .... II .. IIII.IU .... II .. II.IIU ........ , .... II ..................... 1I1I III " " " ' III ........... III!]

STATISTICS ON COTTONSEED AND COTTONSEED
E
PRODUCTS
:
'l'exns
United Stntes
Aug. 1 to Nov. 30
Aug. 1 to Nov. 80
This Season Last Senson This Season Last Season
Cottonseed received
nt mHls (tons }.......... 1.241,254
1.260.687
8.429.014
8.841,077
Cottonseed crushed
(tons) ..........._...........
848,814
778.175
2,401 ,824
2,470,078
Cottonseed on hnnd
1,391,922
(tons) ..........................
426,871
481,639
1.113.974
Crude oil produced
40 418 222
(Ibs.) .......................... 248.688.700 219,104.000 744.299.605 7 • ,

Cd:~e~nd(;::~:~ ~.~~......

_~=: _

8

1., •• 1 •• 1.1.1 ...................................................... , ............... , ••••••••••••••• ,., ........

::

~~:g~~ ~
91.000 . :

E

m
.........................,.....,................................

E

Receipts .....................
..
..
Exports: Great BritnIn ......................... _... 481.668
1,081,867
France ............................................ 416,787
461.810
Continent ...................................... 1,692.898
1,926.496
J apan- China .............................. 601.164
628,678
Mexico ... _.......................................
6.702
8,166
Total foreign ports ...................... 8.047,699
8,986,907
Stocks at all U . S. ports Nov. 80 .............. 2,644.376
2.914.686 §
[!J •••• ,••• , •••••••• II ••• III •• I •••••••• II ...... I ...................... , ••••••••••••••••••••••••••••••••••••••••• 11 • • ••• 1••

Receipts ................
••
:::'
Exports ................. .460,150
16
Stocks, Nov. 30....
622,132
721,4
8,.111.11111.1111 .... 11111111111 ..... 1111 .. 1111 .......................... 1111.111111 ....... 1.. 1111 ............ 11111 ..... 0
II
GALVESTON STOCK STATEMENT
Nov. 30.
1927

!

NO~!~

Nov.
Nov.
1 to
1
Seas 0 n
Season 6 U
l!.7680
1926
Season 2.22 2.9 80
::_:E
26
1.601.082
688.746
2.499.370
1.041.437
1.661.386
1.498.013
:
6.291.086
............
............
6,969,418
6,616,602
E
••••••••• , .... ,111,.,11,.,.,,., ••• "...... ,., ........... , •••••••••• ,1 ....................... 1,.11." ••• 110

SEASON'S RECEIPTS. EXPORTS AND STOCKS AT ALL

:
:

::~:~:er N6:2~6!.~~er T~:~f~l~ NL:~~~~i;

;:_,
_

AU~~~:

~

a···························..····..····················...............,......................1........................I[!]

(!J •••••••••••••••••••• ,••••• I1I ............................ """"""""., •••••• 11 •••• """""""""""'".1 •• 1•• [;]

COT'OON MOVEMENTS THROUGH THE PORT OF GALVESTON

UNITED STATES

O
1 to N°L.:t

Season
1.844.047
1.131.466
6.668.561

_

:
:

ii

COTTON GROWING STATES

!
§

E

S

COTTON OONSUMED AND ON HAND

Hulls produced

(tons )

889.510
242.915

858.000
226,000

1,066.972
681,787

1.106,615
706.884

Linters produced ......
(l'unnIng bales)
164.896
128.000
481 .369
410.297
Stocles on hllnd
November 30:
• CI'ude oIl (Ibs. }............ 44.049.818 26 .988.000 117,129.884 86.614,000 g Clliec nnd m enl (tons )
46.591
82.000
205.008
176.101 §
g Hulls (tons) .................. 107,263
106.000
269,948
266.601 §
: Linters (running
:
~
billeD ) ..........................
66 .088
65. 000
151.048
192.846::
11
11.111111 ...... 1111 .... 111 .. 11, ........ 11 ............ ,111111 ...... 111 ........... 1111., •• 1111 ....... 11 ........ 111 ••• .8
§:::::-

WHOLESALE TRADE
The distributiDn Df merchandise in whDlesale channels
reflected a seasDnal decline as cDmpared to' the previDus
mDnth and in the majDrity Df repDrting lines it was smaller
than a year agO'. The continuance of unusually warm
weather thrDughDut N Dvember retarded buying at biO'tlh
whDlesale and retail. RepDrts indicate, hDwever, that fDIIDwing the cDld wave early in December an active demand
fDr merchandise at retail develDped which in turn stimulated the demand at whDlesale. SDme lines repDrted that
business in December has been hDlding up exceedingly well.
CDllectiDns in mDst lines in NDvember reflected a material
decline as cDmpared to the previDus mDnth. While the
liquidatiDn Df a~cDu~ts did nDt CDme up to' earlier .expectatiDns the situatIOn IS much mDre favDrable than It was a
year' agO'. CDnservatism is still the ruling pDlicy Df bDth
whDlesalers and retailers and business generally is in posi-

MONTHLY BUSINESS REVIEW
tion to benefit from the improved financial situation of the
district's population. The consensus of opinion seems to
be that trade conditions are gradually improving and that
the outlook for the future is considerably improved.
The demand for drugs at wholesale was well sustained
during November. While sales reflected a slight seasonal
decline of 1.5 per cent as compared to the previous month
they were 4,.5 per cent greater than in November, 1926.
While buying appears to be somewhat quiet in some sec..

;!:~j!;~:;::~~1~~;::t~~y~tp;'i~ie7p:!~~::':~~:d

Following the active demand for hardware during October, bUY1'ng reflected a seasonal decline in November. Sales
were 6.6 per cent less than in the previous month and were
2.6 pel' cent less than a year ago. It should be recalled,
however, that buying during November, 1926, was active.
·.
. h
d
h
Some dealers report th at con d ltlons m tetra e are S owina a noticeable improvement and that the outlook for the
fu~ure is favorable. Collections reflected a substantial de·
cline as compared to the previous month.
There was a further seasonal falling off in the demand
for groceries during the past month. November sales were
11.4, per cent less than in October and were 2.8 per cent
below those for November, 1926. Collections showed a
material decline as compared to the previous month. Prices
have shown no material changes. Dealers report that the
outlook is fairly good.
The past month witnessed a substantial increase in the
distribution of farm implements. Sales during November
reflected a gain of 4.2 per cent as compared to October and
were 137.8 per cent larger than in November, 1926. Sales
during the five·month period ending with November were
21.7 per cent larger than in the corresponding period last
year. With the harvesting of crops practically completed
and with plowing operations in full progress the demand
for implements is showing improvement. It should be reo
called that the distribution of implements during the past
year has been very small as farmers made only such replacements as were actually necessary for the cultivation of crops.
This, together with the improved financial condition of the
farmer, greatly improves the outlook for the distribution
of implements during the coming year.
The distribution of dry goods at wholesale was materi·
ally affected during the past month by the unseasonal
weather. Sales reflected a decline of 28.8 per cent as com·
pared to the previous month and were 15.1 per cent less
than in Novmber, 1926. The decline was fairly general

throughout the district. Distribution during the five-month
period ending November 30, was 8.8 per cent larger than
during the corresponding period last yea r. The cold wave
early in December, however, together with Christmas shopping, has greatly stimulated the demand for merchandise at
retail and this has been reflected in increased buying at
wholesale establishments. Dealers report that the outlook
for the new year is favorable.
8'· .. •.. ·111111111111111 .... ,11 .. 111111111111111 ... 111111111111111 .. 11 .... 1111111111111111111.111111111111111111111111·0

!CONmTWN ~~"~~~~~~~;':,~~~:t~~ N;~~~':'" :_E~ !
compared
N ov.
1926
Groceries ............2.8
Dry Goods .......... - 15.1
Farm Implements+ 187.8
Hardware ............2.6
Dr ugs ............ .. .... + 4.5

with oompared with
Oct .
same p eriod
1927
Illst year
- 11.4
- 4.0
-28.8
+ 8.8
+ 4.2
+21.7
- 6. 6
- 7.0
- 1.6
- 2.2

compal'ed
Nov.
1926
+ 1.8
+ 5.4
- 15.0
- 7.6
- 8.9

rn"'"IIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIIIIIIIIIIIIIIIIUUIIIIIIIIIIIIIII..

§

:

II.,G

RETAIL TRADE
Retail distribution during November as reflected by department store sales in larger cities reflected a seasonal
decline of 4.4 per cent as compared to the previous month
but was slightly less than in the corresponding month last
year. While the high temperatures prevailing throughout
the month retarded to some extent the movement of winter
merchandise, the cold weather during the first half of December greatly stimulated buying. Reports indicate that the
volume of Christmas shopping is heavy. Departments in
which November sales showed a large increase as compared
to a year ago include th e following: Women's coats; women's dresses; misses' ready-to-wear; waists and blouses;
sweaters; silks and velvets; toilet articles, drugs; silverware,
jewelry, umbrellas; leather goods; draperies, lamps, shades;
and, musical instruments and radios. Among the departments showing decreases were the following: Woolen dl"ess
goods; cotton dress goods; linens and blankets; domestics;
small wares; handkerchiefs ; women's skirts; juniors' and
girls' l"eady-to·wear; and kniL underwear.
Stocks on hand at the end of November, while pl"actically
the same as a month earlier, were 2.9 per cent less than a
year ago. The percentage of sales to average stocks during
the eleven months of 1927 was 24,0.3 as compared to 232.0
during the same period last year.
Collections showed an improvement over both the previ.
ous month and the same month last year. The ratio of
November collections to accounts outstanding on November
1st was 39.0 as compared to 37.7 in October and 36.9 in
November, 1926.

0 ... 111111 ...... 111 ........... 111 ........ 11111 ............ 11111 . .. 1111111111 .... 11111 ......... 1111111111111 .... 11111111111 .. 111 .. . 111111.11 ..... 111111 ....... .,11 ..... 11 ..... 1111 .... 111I111I1 ... IIIIIIIII.II.IIIIIIIIIIIIIIII .... I ..

Total Sales:
Novmber, 1927, compared with November, 1926.............................. ........ ..
November, 1927, compared with October, 1927 ... _...................................
J a nuary 1st to date as compared with sam e period las t year ...... _..
Credit Sales:
November, 1927, compared with November, 1926 .__......__ .___ ..._.......
November. 1927, compared with October. 1927 ... _
....................................
January 1st to date a s compared with sam e period last year ....._
....... .
Stocks:
November, 1927, compared with November, 1926 ........... ........................ .
November, 1927, compared with October, 1927 ........................... ............ .
P el'centage of sales to ave rage stocks in:
November, 1926 ................... _............................................................................ .
November, 1927 ........................................................................... _.................. .
P ercentage of sales to aver age stocks:
J a nuary 1 to November 30, 1926 ..................................................................
January 1 to November 80, 1927 ........... _...................................................... .
R a tio of outstanding order s to last year's purchascs ..... .................................. .
Ratio of November collections to accounts receivable and outstanding
November I, 1927................................................................................................

with
Oot.
1927
- 2.0
- 9.6
- 3.7
- 2.6
- 2.8

Dallas
+ 6.7
- 4.9
- 7.4
+12.9
- 8.5
- 6.7
-

4.0

+ 1.6

Fort Worth
+
.8
+ .1
+ 2.3

!
+

Houston
- 10.2
- 3.1
- 4.1

All
Others
- 4.4
- 6.9
- 2.0

10.5
.6
7.0

-

7.0
8.1

-

2.9
6.9
None

2.7

-

6.3
1.5

-

4.2
8.1

+ 8.1

-

.2

III1I1II1I1I1I1.IIII . m

Total
District
_
.5
_ 4.4
- 3.8

+

-

6.2
3.9
1.8

-

2.9
None

28.6
25.8

25.0
24.1

21.1
20.4

24.6
24.4

24 .0
24.4

284.0
241.6
4.6

221.4
235.0
2.5

214.6
216.1
4.9

241.0
249.2
2.7

282.0
240.3
3.8

85.8

87.6

46.0

48.4

89.0

81111UIIIIIIIIIIIII .... "IIIII .. III .... III .... 11 ..... IIII.111111I1I1111I1I1I11I .......... 111111111 ... 1111 .. 11 ... 11.1111 ..... 111111"11 .... ,1 •••• 11111111111111,.111111111111.,11111111111111111111111111111,,,,111111111I11I1 .... IIIII .............. III ..

m

MONTHLY BUSINESS REVIEW

5

on October 31th to $1,687,855 on November 30th those
on the domestic shipment and storage of goods de.
clmed from $6,519,212 on the former date to $6,067,429
on the latter date.

FINANCIAL

b~sed

. Although debits to individual accounts at principal cities
m the Eleventh District refl ected a decline in November as
compared to October, they were substantially larger than in
the corresponding month of last year. November charges
aggregated $823,691,000 which was 6 per cent less than in
October, but 7.6 per cent greater than during November,
1926.

Condition of

A decline was reflected in the loans of
member banks located in selected cities
in Selected
of the Eleventh District during November.
Cities
However, this decrease was more than
(!J ••
offset by an increase in investments re§
DEBITS TO INDIVIDUAL ACCOUNTS
S sulting in a moderate gain of $3,164.,000 being show~ in
::
(In 'Phousand. of Dollars)
::
total loans and investments on November 30th over those
Nov.
Nov.
Inc or
Oct.
i nc. or
four weeks earlier. Total loans and investments of these
1927
1926
Dec.
1927
Dec.
Abilen e .................. .... $ 12.781
$ I4 . 10~
- 9.~
$ 13.1 22
- 2.6
banks aggregated $437,967,000 at the close of November as
Aust in ................ ...... 20.872
22,846
- 8.8
22.621
- 9.9
compared to $434,,803,000 on November 2nd, and $394,.
Beaumon t .................. 21.63 ~
22.068
- 1.9
28.228
- 6.9
Cors icana ... _.............
6.124
6.486
- 6.6
7.214
- 16.1
269,000 on December 1, 1926. Commercial loans declined
Da llas ........................ 258.992
221. 227
+17.1
268.064
- 8.4
82.682
+ 7.6
34.054
+ 8.1
E l P aso ...................... 85.098
from $253,165,000 on November 2nd to $252,4,00,000 on
Fort Wort h .............. 106.37 4
91.057
+ 16.8
103,872
+ 2.4
the 30th and loans against government obligations receded
62 .841
+ 2.0
67.188
- 6.6
Ga lveston .................. 53.920
Hous ton ... _................... 183 .817
1 8 8 . 49 ~
+ .2
218.366
- 13.8
$32,000 during the same period. After increasing for three
Port A rthu r ........... ...
9.632
9.169
+ 6.0
10.066
- 4.3
San An tonio· ............ 79.096
81. 866
- 2.8
consecutive months, loans on corporate securities declined
Ros well ......................
6.266
3.904
+ 34.6
4.692
+ 14.4
$174,000 during November. Investments of these banks in
Shreveport ................ 88.~ 6 6
87,155
+ 8.6
42.821 - 10.2
l'cxllrka na ................ 12.472
8.700
+48.4
11 .686
+ 6.7
United States securities rose $3,576,000 and were $17,9.704 - 8.8
9.961
- 6.8
T ucson ........................
9.886
W IlCO ..........................
23.454
18. 655
+ 26. 7
2 6 .6~8
- 12.0
078,000 greater than a year ago, while their holdings in
§ Wichita Falls .......... 25 .965
8 2. 2 5 ~
-19.5
28 .208
8.0
other stocks and bonds were expanded $559,000 during the
rota l 11th District..$828 .691
$765.787
+ 7. 6
$876.660
- 6.0 :
:
[!J .•••••••
mo·nth. Net demand deposits increased $8,234,000 and time
• San Antonio fi g ures not included in totals .
deposits rose $1,276,000. Combined deposits on November
The volume of acceptances executed by 30th were $4.7,880,000 above those on the corresponding date
Acceptance
accepting banks in this district and out· of last year. Their bills payable and rediscounts with the
Market
standing at the close of the month reo Federal Reserve Bank amounted to $5,877,000 on November
flected a further slight decline on November 30. Accept. 30th as compared to $9,100,000 on November 2nd and $11,.
ances executed and outstanding at the end of the month 211,000 on December 1, 1926. The ratio of loans to' net
aggregated $7,755,284, which was $380,161 less than a month demand deposits was 83 per cent on November 30th, as
earlier. While acceptances of these banks executed against compared to 86 per cent on November 2nd, and 91 per cent
import and export transactions increased from $1,616,233 on December 1, 1926.

Member Brmks

IIIIII •••••• IIII ••••• ,IIIIIII.,I.II.IIIIIIII.IIIIII1111111111111" •• 1.11111111111111111111111.111"",1111 •• IIIII.II I
t!]

IIII.IIIIIIIII.,IIIIIIIIIIIIIIIIIIIIIIIIIIII.111"'1111111.,,11111111111.1 •••• 1.1 •• ,,11111111111111'1"1"'111'0

m, ....

"'I •• ,I ••••••••••••••••••• I ••• '.' ••••• """'"""1111111111"'11111"1111111111"11111'1111""""111111'111111111111,11111111111111'11111111111111111111.1.1111111"""""""'.,1.'.,1"11111111111111111111111111.1 ••• ,II ••• ,lllllllllt'.,IIS

E

CONDITION STATISTICS OF MEMBER BANKS IN SELEC'I1ElD CITIES

§
~

:
:

§
:
§

:
::

1. Number of reporting banks ............................................. -· ....··.. _..·..·· ....· ....··_............................2. U. S. securities owned ........................... _...... __.._................ ...... ·· ..........·......· ............ - .. _...............
8. All other stoclts bond. and securities owned ..............................· ..........···.... _ ............·....··....·
4. Loans secured by u. s. Government obligations ...................................... · ......;· ..................·..
5. Loans secured by stoclts and bonda other than U. S. Government obllgattoll8................
6. All other loans ................ _............ _.............. - .................................. ·..... ...........................................
7. Net demand dcpositB ............ _...._........ _........................... _ ........ ·........·_ ..............................._.........
8. Time depositB .............................................. - .............................. ··....... _.. _...... -..................................

I ~t i~1r:~:I~Ht~:t~!:~;~~£d~!~~~~~~:1:~~~~~~::~~~~:=: : : : :~: : : :=::::::::=::::=:::::: :
:

Nov. 30. 1927
45
$ 68.465.000
31.415.000
2,760.000
89937 000
252:40 0:000
306618000
118' 447' 000

3~:m~~t~

::
N ov. 2. 1927

g

Dec. 1, 1926

~5

$ 64 .889.000
30.856. 000
2.782.000
8a 111000
253' 165' 000
297 '384'000
112'171' 000

8~:~g~~~~

47 E
$ 51.887.000 :
25.254.000 :
~ 188 000 §
71:784:000 :

2~1.661.000 E

271.870.000
99.815.000

:

E

~~:mrim I
E

"Loans include only items 4 and 6.

8'11111'1111111111'111111111111111111111111111111111111111111"1",1111",111111111111,.11",1111.1111111111IIIIIIIIIIII •• UIIIIIIIIIIIIIIIIIIIIIIIIII'IIIIIIIIII.I111",11,111111.1 •• 11,11',1111, •• 1.1, •• 1111.,111.1",1111111.I'II.II.II.llllllllltl.,I··0

Reports from 89 banks in this district,
which op erate a savings department, show
Deposits
that savings deposits amounting to $128,25] ,065 on November 30th were 1.1 per cent greater than a

Savvlb
gs

month earlier and 10.1 per cent above those of a year ago.
There were 271,875 accounts carried at 83 of these banks on
November 30th, as compared to 270,738 on October 31, and
256,852 on November 30, 1926.

m.lllt'IIIIII.III •••• tlllllll.IIIIIIIII •• IIIII ••• '.111.1111 •••• ,.1.11.1.1 •• 11.11.,1,.'1'11111,.1 •• ,11, •• 11'.'111.'1.1 •• 1.11.1.1'11 •• 111111 •• 11, ••• 11.11, ...... ,.,'"1,111.111,11 •• ,111.111.1,.'1.,1,1111.11111,111,.111.11111111.,I"II.II.II.,I •• I •• II •• 11 11!J

~

~

SAVINGS DEPOSITS
Novembel' 80. 1927
Number of Number of
Amount of
Reporting Sa vings
Savings
Banks
Depositors
Deposi ts

~f~~I:zt . ::~:=:::::: : : : : : : : : :: :
~~r!c!o;th
............................. ..

~~J.~~:'~~ ;::~:~-::

Al: c~:~rFa1l 8 ................... _..... ..

s ...................................

4*

6t m

8
12.
6
4*
8
2

13.482
64.408
28.713
28.911
7.63 7
~ 285
40;197

i

4~ "

}~:m

$ 2.4 94.858

2
H!H!!
9;~39:604

29.877.786
18.630.706
11.218. 186

~.329.2 1 3

2 084 685
21;911 :528

----

November 80. 1926
Number of Amount of
Savings
S nvings
Depos i':ors
Depos its

4~:m

~~:m

13.158
56.596
27.490
22.533
7 .S8~
5.818
38.758

$

l~:m:m

~:m:~~:

8.605 .641
26.793.818
12.405.763
11.41 2.945.

8 .954. 83~

2.698.081
18.718.878

Inc. or
Dec.

+lJ::

+" U
97
+1 1'5

Octobcr 31. 1927
Number of Amount of
Savings
Snvinll8
Depositors
Deposits

6~::n

~~:m

61~.·140948

$

28:ggg:tg~

-

.5

9.772.176
29.426.382
18.529.614

-

8.4

+1.4

~:m:~~~

+ 9.9
.
+

.,
28.602

5
2:249.' 6

-

23.887

11.829. 8~8

+17.1

89.981

4.254.044
2.005.804
21.722.123

1.8

47.·16~5
5

Inc. or
Dec.

+ 2.8
+ ~.8
+ 2.8

+1.5
+ .7
- 1.0

+ 1.8
+ .9

T otal.....................................
89
271. 875
$128.251.065
256 .852
$116.529.629
+ 10.1
270.788
$126.889.715
+ 1.1
' Only 3 ba n ks in Beaumon t . 11 banks in Houston. 3 banks in Sh,·cveport. and H banks in a ll others re ported the number of savings depositors
£E) ltIlIIIU •• IIIIIIIUIIII'III1.IIIIIII'UIIII ... III.III1I1I1II •• 111I1I1I1I1I1111111111111111111 .. 111111111 .... 1111111111111 11 111111111.111111111111 ... 1111 .. 111111111.1111.,111111111111'"111111111,11111.11111111111111111111111111 .... 111111111111.11111.m

MONTHLY BUSINESS REVIEW

6

I!l .............. II II II """,,111.111 II 1111""""""''''''''''''''''''''''''''''''''''''''''''''................................. lIlIlIlIlIllIllIllIllIllIlIlIltlllIl....... III .... ""1I1I1I1I 1I1I11I.1I" .. III ... IIIIIIIIIII.. ,III .. III.I .. ,'II .... IIt I~
DECEMBER DISCOUNT RATES
Dallas
Rate chargea customers on prime commercial paper such

:es:.v.:'°A'cte1~~~~.. !.~~ _~:.d~.~.~~~.:.. ~~.~.~.~.:._:.~~~

~:.,f::bl~~. ~.~ . .~~~.by .prime . stock exchange . or ..~~.~~
.~ .~~~ .~~~:..~~~~ ~: other
Rate on loans secured

curren t collateral (not including loans placed in other
markets through correspondent banks) :
(a) demand .................._-........._...•........- .. - ....- ....... _...........
(b) time ........ _.......... - ... _...... _.............. _...........................
Rate cJn commodity paper secured by warehouse receipts.

§

El Paso

:~

6-8

6-6

4',0'<-6

1111.,-7

5

6

6-6

6-5¥"

5-6

6'J.,

6-7
5-7

6-8
6-8

6-7
6-7

6-6
6-6

~

~=~

~=~

t~

6-7
6-7
6-8

6-7
6-7
G-8 E

6-8

:_~:-

g

8

~

I •••• II •••• I.III.IIIIIIIIIIIII ••• IIIIIII •• ,1111111111111111111111111.1'1111111.11111.,.1,11111."'"1111.,111111.11 " •••• 11.11111111111111111'.,11 111 111 ••• 1111111111111111111""11111,111111111111111.111.1 •• 1 ••• III.I ••• 'IIII'I.III.II.IIIIIUI.,m

1 ........................................ 111.11 .... 11 ... 111 .... 11 .. 11111 ...... 111111111I1 .. 1I1I1I1I11I1I11I11t 11!)

DEPOSITS OF MEMBER BANKS
~
Banks in cities Banks in cities ::
Total Total with a popula- with a popula.- ::
.
tion of less
tion of over =:_:
pemand Time
than 16.000
16.000

~

:

--I---

Nov. 24. 1926..___ ..
Dec. 29. 1926 .......•.......
E Jan. 26, 1927....... _.......
: Feb. 28, 1927..............•
:: March 28. 1927.••....._.
:: April 27. 1927.............
§ May 26. 1927........... _.
~ July 27. 1927 .........•.•....•
June 22. 1927 _.•...•...
Aug. 24. 1927................
Sept. 28. 1927..............
Oct. 26. 1927 ................
:: Nov. 9. 1927................

636.704
632.391
638,208
660,879
646.449
632.818
613.186
606.696
608,812
6ll,818
667.864
698.989
721.728

§
_

Waw

8

A further substantial increase was shown
in combined deposits of member banks in
the Eleventh District during the two-week
period ending November 9th. On this date, total deposits
of these banks aggregated $907,143,000 as compared to
$884.,305,000 on October 26th and $801,417,000 on November 24" 1926. Net demand deposits increased $22,789,000
and time deposits rose $49,000.
8 ........
::
::
::
_

San Antonio

4~-6

Deposits of
Member Banles

~

~:

Prevailing rates
Houston

~

&:;.o~··atti~·l~;;;;;;=:::::~::::::~~:=:::=:::=:~~:::::::::=::::::::::

EIIII' .•

Fort Worth

166.718
161,608
166,919
176.603
176.180
176,886
178.896
180.646
178.868
182,798
188.181
186.866
186.415

Time ~
1---:

Demand

Time Demand

287 ,418
281.721
282,876
290.886
278.998
272.264
266,868
263,818
261,809
266,790
808,977
822.679
333.679

44.194
41.290
48,791
44.869
46.021
46.624
47.618
48,119
47.666
48.848
49.028
49.887
48.482

348.291
360.670
850,888
360.494
866.461
860.664
347.278
342.888
8<\1.608
345.028
863.877
376,860
888,149

121.519 ~_120.213
128,128 §
131.684 :
180.109 ::
129.212 ::
181,277 ::
132.426 .:--_ ~
130.702
134.460
134.108
186.479
136.988:

loans to these banks were approximately $600,000 greater
than a month earlier. Total loans to member banks on
December 15th amounted to $5,632,396 as compared to
$11,077,4.19 on October 31st and $8,689,84,2 on December
15, 1926. There were only 45 borrowing banks on November 30th as compared to 81 on October 31st and 134 on
November 30, 1926.
Due to the decline in loans to member banks, total bills
held declined from $28,508,031 .96 on October 31st to $25, .
198,170.80 on November 30th, distributed as follows:
Member bank collateral notes secured by United States Government obligations ...................................................................... $ 2.686.600.00
Rediscounts and all other loans to member banks........................ 4.097.468.85
Open market purchases (Bankers' Acceptances) .......................... 18.414.207.46
Total bills held ....................................................................... _....... $26.198.170.80

Federal reserve notes in actual circulation reflected a decline ftn November and amounted to $48,770,660 at the close
of the month, as compared to $50,753,140 on October 31st,
and $4,9,310,490 on November 30, 1926. The daily average
reserve deposits of member banks amounted to $67,668,422
in November, representing an increase of $2,834,,036 over
the previous month and $8,090,980 as compared to Novem.
ber last year.
8' ..
FAILURES
Operations of
While the loans of the Federal Reserve
the Federal ReBank of Dallas to member banks showed
The business mortality rate in the Eleventh Federal Reserve Bank
considerable variation during the past six serve District during November reflected a sharp increase
.
weeks, there was a net decline of $4,,- as compared to the previous month but it was substantially
293,455 in these loans during November and a further de- lower than in the corresponding month last year. The incline of $1,151,567 during the first half of December. crease over October, however, is not surprising in view of
There was a steady decline in the borrowings of country the fact that failures almost invariably become more numer.
banks throughout the six-week period. Loans to reserve city ous during the closing months of the year. There were 68
banks, however, were somewhat erratic; after declining dur- failures during the month with liabilities totaling $818,200
ing the first half of November, they showed a substantial as compared to 38 defaults in October with an indebtedness
increase during the last half of the month and then declined of $554,,653 and 95 insolvencies in November, 1926, which
during the first two weeks of December. On December 15th owed $1,54,3,071.
PETROLEUM
A decline was shown in total production of crude oil hi 223 barrels as against 619,848 barrels during October,
the Eleventh District in November as compared to October, representing a gain of 4,375 barrels. A substantial increase
but due to the shorter month the daily average yield in- was shown in the daily average output of Central West
creased. There were 20,209,350 barrels of oil produced dur- Texas and there was a slight rise in that of the Gulf Coast
ing the month as against 20,805,070 barrels in October, area, but production in all other fields of the State declined.
representing a decline of 595,720 barrels in total production. The completion of large producers in Crane and Winkler
Further withdrawals on stocks in some parts of the district counties and the extension of the Yates field were important
and the heavy flush production of new wells were major features in the activities in Central West Texas and were
developments in the oil industry during November. Comple- responsible for the gain in the output of that area. Heavy
tions totaled 476 wells of which 236 were producers of oil withdrawals on crude stocks in the Panhandle field indicate
and 4,3 were gas wells as compared to 4,35 completions in further improvement of the oil situation in that locality.
October of which 207 were successful and 55 were gas wells. Activities in the Spindle Top field, the principal producing
Initial production amounted to 171,575 barrels, an increase area in the Gulf Coast region, were held at practically the
same level as in October. Total production in North Louisiof 4.9,4,13 barrels over that in the previous month . .
ana declined from 1,589,770 barrels in Octobcr to 1,4.82,650
The daily average yield of oil in Texas amounted to 624,- barrels in November.

_:-

1 .. 1 ....... 111 ... 111 ................ 11111111111111 .. 1111111 ..... 1 ..... '"1111111 ........... 111111 .. 1111111111 .. 111110

MONTHLY Bm3INESS REVIEW

7

(!JIIIIIIIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIIIIIIIIIIIIIIIII11111111111111111111111111111111111.11111111111111111.11"111111"'11111111111111111111111111111111111111111111111111111111111111",.1'1,1111111111111,11111111111.1.IIIIIIIIIIIIU.I.I.I.,IIIIIIII ' 8

::
:

OIL PRODUCTION

§

November
Total
Daily Avg.
6.261.060
175.086
8.174.600
272.486
848.850
28.278
8.674.100
122.470
778.600
25.958

-

~
_

October
Total
Daily Avg.
6.672.960
182.998
8.03 0.650
259.05a
896.650
28.924
8.788.050
122.084
832.000
26.839

~

:

North Texas ........................_........ _............................_
Central-West Texl18 .... _ ......................................_ ... _
East-Central Texas .... _.........................................._.
'I1exas COastal... ............................... _...........................
Southwest Texas ................ __ ......................................

~

Total. 'I\exas ........................ _.............................
North Louisiana.................. _......................................

18.726.700
1.482.650

62d.228
49.4 22

19.215.300
1.589.770

619.848
51.283

Dec.
Dec.

488.600
107,120

Inc.
Dec.

~
4.876 :
1.861

Total, Dlstrict..............................................-...

20,209.850

673,645

20,806,070

671.181

Dec.

696.720

Inc.

2,514 ::

::

§

~
:

::
8

Dec.
Inc.
Dec.
Dec.
Dec.

::
i
Inc. or Dec.
§
Tootal
Daily Avg.
:
421.900
Dec.
7.962
148,950
Inc.
18.488
48.800
Dec.
646 ::
108.950
Inc.
486 i
53.400
Dec.
886 ::

§

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E

E

§
:

Com pletions

Field-

:

:

Pro·
ducer8

Gas
Wells

Fail.
Initial
ures Production :
:

North '!'exas .................... 151
E Central·West Texns ........ 162
: East 'I'exa8 ..............._..... 5
§ Texas CORsta l .................. 88
:
Southwest Texas ............ 8
~_§ Texas Wildcats ...... ........ 43

72
99
1
82
4
6

10
11
4

69
62

8
1

6
1
87

Total Texns
. ...... 407
N01·th Louisiana ............ 69

218
23

29
14

165
82

::

~:

amounted to 81 per cent of normal as compared to 82 per
cent in the previous month, while shipments of lumber
which amounted to 87 per cent of normal production were
the same as in October. Although not as pronounced as in
1925 and 1926, orders during the month declined, due in
part to the usual tendency of retail establishments to reduce
stocks before the close of the year. Orders amounted to 82
per cent of normal production, a decline of 6 points from
those in October. Stocks at the close of the month amounted
to 8 per cent below normal as compared to 5 per cent in
the previous month. Unfilled orders for lumber as reported
by 49 mills totaled 4,3,825,056 feet on November 30, as
against orders for 49,74,5,440 feet on October 31.

~
§
§

NOVEMBER DRILLING RESULTS

6,856
146,109
87
11.600
211
286

:

E
:

§
:

i_

166.048
6.527 ::

Nov. Totals, District.. .. 476
286
4 819"
.
171,675 E::.
Oct. Totllls, Dis tl'ict. .. ,436
207
65
178
122.162
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0 .. ,.,1, ... ,11"11 .... 111111111111111111111 ... 111111111111111111.,1111111111.11111.,IIIIIIU.IIIIIIIIIII .......... lllllim

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CRUDE OIL PR'ICES

Di8i';4.

Texas Constal (Grade .. A .. ) .............................................. $1.20

Nort:~2n:...c~~~ra~b~::)~~ ..~~~...~.~~:~.. ~~~.i.~.i.~~~............

Decii;1i

111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 II II II II II II II II II II II II II III

'"

Number of reporting mills _ ........_.. _ ......._..........
49
Production .................................................................. 98.282,280
Shipments .................... ................................................ 99.975.234
Orders ................... _..................................................... 94.444,122
Unfilled orders. November 30 ................................ 43.826.056
Normal production .................................................... 115.515.968
Stocks. November 80 ....... ___ ._._.............. _ .. _.284.464.518
Normal stocks ... _....................................................... 309.088.182
Shi pments below normal production ...................... 16.540.719
Actual production below normaL .......................... 22,288.723
Orders below norma l production' ........................... 21,071.881
Stocks below nor maL ............................................... 24.668.614

$1.40

1.60
•
·Prices for December H. 1926. not available on a comparative basis.

:

8

1:_

S

a

l!j

Oil Stat istics Compiled by the Oil Weekly, Houston. 'rexas

LUMBER
The production of lumber at Eleventh District pine mills

feet
feet
feet
feet
feet
feet
feet
feet--18%
feet--19%
feet--18%
feet-- 8%

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Lumber statistics compiled by the Southern Pine Association

W

BUILDING
After declining in September and October, the valuation
of building permits issued at principal cities in the Eleve~th
District increased in November and was larger than dunng
the corresponding month a year ago. The valuation of per·
mits issued at these centers aggregated $7,843,869, as com·
pared to $7,066,856 in October and $6,170,517 in. Novem·
ber, 1926. An interesting occurrence was the heavy mcreases
r:'I

;:1

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·~ ~' 'w______ N.~~OO:~~i:: N;~~m:~;~ ~:m~~~:.~i ;:; ;' ,.gU<:~i:~:~:· ~; : ~ ;~i; ~:1:I~; ;lI
Austin .-..............
Beaumont ........... Corpus Christi.......
Dallas ....................
El PBWSO th

g~f;esto~

189
67
288
68
278

809.896
178,210
524.982
188.205
1.661,886

238.224
142.185
478.884
89.308
806.400

+ 82,7
+ 21.8
+ 9.6
+238.9
+106.8

186
81
266
72
882

....:::::::::

m d~~:m

164
76
879
60
278

.

100
411

79.912
937.486

107
279

66.768
484.186

+ 19.7
+ 98.6

125
368

71
2.558

348,454
$7.843.869

110
2.677

462.616 - 24.7
$6,170.517 + 27.1

2.7~~

~oo~S~~thur...........
A

~h~eve;~t~

...::::::::
Waco .....................
: Wi~~~ F~.l.~..:::::::.
::

reported by Austin, El Paso, Fort Worth, and Galveston in
November, the volume of permits issued at each city more
than doubling that in the corresponding month of 1926.
The decline in the valuation of permits granted during the
current year as compared to the same period of last year
was reduced to 16 per cent in November.

2g~

(!J ••111.1111111111111111.11111111111111111111111111111111

m

~~t 1,6~g:m t1~~:~

2itm 2JJ

l~~:m

t ~~:~

265.808
187,380
451.704
206.190
1.114.008

+
+
'+1-

8.346
687
~,~7638

4,767.038
2,631.100
9,421,998
1,202,572
1 82,~2 0,~468
05

2,m:m

= 5'm

l~ 'm'm

27~'m

94 •

2~5

1604

7.6
16.2
35. 4
l9 3
'5 6· 2

7J2

1,865
699

3:9

5:5GG

25:408:1~9

8,976
669
8,6 20
2 882
5:807

14.6

2 : ~2 1

3'817'951

1'787

+ 11' 0
.

28,U37

$D4 ' 5r.5 ' 5~9

30'5~2

-

_

7~:~

2~~:m -+ ~~.~

200.252
$7, 066,856

2.028

m

~'m

~:~~~:~i~ l'i~~

.

• u ,

•

1,877.968 +168.8
1.929,729 + 81.2
15.640,015 - 89.8
1,099,500 + 9.4
16.044,998 - 17.6

2~:~~~:m

l~'~~~'m
5'207' 6

~:m:~4~

=19:~

+ 86,2
1.1

+~~:~

$ 112·648·~9~ ,, 4

-

68.2
16.0 _

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CEMENT
While the production of Portland cem.ent at Texas mills
declined slightly in November from the hIgh re~ord reached
in October, it was substantially higher than m the same

month of last year. There were 525,000 barrels of cement
produced which was 1.3 per cent less than in October but
30.6 per cent greater than during the corresponding period

MONTHLY BUSINESS REVIEW

8

a year ago. November shipments aggregated 54,3,000 barrels as compared to 535,000 barrels in the previous month
and 4,27,000 barrels in November, 1926. Stocks on hand
at the close of the month continued downward and at the
close of November were 6.7 per cent less than a month

earlier and 33.9 per cent below those a year ago. As compared to the same period of 1926, production of cement during the eleven months of the current year showed an increase
of 11.3 per cent and shipments were 10.6 per cent larger.

8 ............ ,.,.,1, ••• 11 ... 111 ......... 1•• 11111.1 ••• 1••••• 11.1,111111.1'1111"1,1111.111.1111"'111'111111111".1.1.,11111 ••• 1.11.1'11111 •• ,111.1 •••• 11111111,.1.1.1"11111111111,.,.1 •••• ,".11 ••••• ,' ••••••• 11 ••• ,' ••••••••• 1.1111111111111111111, •••• 11 9::: _ _
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMEN'I1 (Barrels)
Nov.
1927
626,000
643,000
262,000

Production at Texas mills_______________
Shipments from Texas mills...................
Stocks at end of month at Texas mllls_.

Nov.
1926
402,000
427,000
881,000

Inc. or
Dec.
+80.6
+27.2
-88.9

Oct.
1927
682,000
686,000
270,000

Inc. OJ"
Dec.
- 1.8
+ 1.6
- 6.7

1927

Eleven Months
1926

6,142,000
6,307,000

4,622,000
4,798,000

Inc. or
Dec.
+11.3
+10.6

811111111 .......... 1111 .......... 1111111 ................. 11111111111 ............. 111111 ...... 11 .. 1111111 ............. 11111 11 111111111111111111111111111 ...... '1.11111 ... 1111111 ... 111IIIIIIU ............ III ........ III ......... IIIIIIIII .... UIIlIlItI ....

m

SUMMARY OF NATIONAL BUSINESS CONDITIONS
Compiled by the Federal Reserve Board as of December 28, 1927

Industrial activity and freight carloadings declined further
in November, while retail trade showed more than the usual
seasonal increase. The general level of wholesale commodity prices after advancing for four months remained
practically unchanged in October and November.

declined during November and in the early part of December were smaller than in the corresponding period for the
past four years. There were large decreases in loadings of
all classes of commodities.

PRODUCTION

PRICES

Output of manufacturers and minerals was reduced in
November and the combined index of production, after adjustments for customary seasonal variations, fell ,below the
1923-1925 average for the first time since 1924. The largest
decline was in the output of automobiles owing largely to
preparation for production of new models. Iron and steel
production has also declined further and in November was
the lowest since 1924. In December, however, inquiries
for iron and steel increased. Textile mill activity was
slightly curtailed in November but continued at a higher
level than in previous years. There were decr~es in the
production of coal, building materials, and leather and
shoes. Building contract awards showed seasonal declines
in November and the first two weeks of December and were
slightly smaller than in the corresponding period of last
year. The total value of about fifty crops in 1927 is estimated by the Department of Agriculture at $8,430,000,000
an increase of $635,000lOOO over 1926. The greatest increases in value were shown for cotton, corn, barley, and
oats, while the largest decrease for any individual crop was
shown for potatoes. The physical quantity of production of
the seventeen principal crops was about two per cent less
than last year, but three per cent above the average of the
last ten years.

The general level of wholesale commodity prices, as II)-easured by the index of the Bureau of Labor Statistics, after a
continuous advance since early in the summer, remained at
practically the same level in November as in October.
Changes were relatively small in all groups, increases occurring in foods, and hides and leather, and decreases in farm
products, textiles, fuels, and building materials. In the first
two weeks of December prices of wheat, cattle, hogs, cotton,
pig iron, and soft·wood lumber declined, while those of silk,
woolen goods, hides, and sole leather advanced.

TRADE

Retail trade increased slightly more than is usual in
November. Compared with a year ago, retail trade of department stores, mail order houses, and chain stores was
larger, while wholesale trade continued in slightly smaller
volume in nearly all reporting lines. Freight car loadings

BANK CREDIT

Between the middle of November and the middle of December total loans and investments of member banks in
leading cities showed a considerable increase reflecting continued growth in the volume of loans on securities and in
the banks' investment holdings. In the same period loans
chiefly for commercial purposes, which reached a seasonal
peak in October, showed a further slight decline. At Federal reserve banks the seasonal increase in currency requirments and the continued demand for gold for export during
the four weeks ending December 21st were reflected in a
growth in member bank borrowing. At the end of this
period the total volume of reserve bank credit in use was
larger than on any other date in the past six years.
Somewhat firmer conditions in the money market in
December were reflected in the increased rate on call money.
Rates on prime commercial paper and bankers' acceptances
remained unchanged during the month.