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MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal Reserve Agent (Compiled December 15, 1934) Dallas, Texas, January 1, 1935 Volume 19, No.n 'l'his copy is released for publication in afternoon papers-- Jan. 1 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Federal Rosorve Distriet Change from October Novembor 1034 Bank debit. to individual acoounts (nt 17 oities) ............... . ... ... ........... . . Dopartment store salos . . ....... . . . ... . ..... . Roserve bank loans to mombor banks at end of month . . . .... . ........... . .. . . .... . .. . Rooervo bank ratio at ond of month ...... . . . . Building permit valuation nt lurgor oontors . . . . Commerolal fniluros (number) ... . ........ ... . Commeroial failuros (liabilitios) . .. . ..... . ... . Oil produotion (bnrrols) .................... . $548.609.000 - 15,000 64.5% 2,065,288 17 $ 223,003 30,762,000 + 59 .8% + 1.3 points :!= iU~ + 18.4~ $ - 12 .5% .3% 3 . 1'70 Sustained actIVity in business and industry and wide· spread rains which furnished much needed moisture were encouraging developments during the past month. Despite lhe unusually warm weather during much of November, sales of department stores in larger cities were maintained at the October level and exceeded those in the correspond· ing month last year by 19 pel' cent. While distribution at wholesale showed a seasonal decline from October to Novemiber, and the increases over a year ago were some· what smaller than in the preceding month, late reports indicate that many replacement orders were received in December. Indications are that Christmas buying in both cities and rural sections is in large volume. Debits to individual accounts at banks in principal cities reflected a decrease of 13 pel' cent from October, which was larger than seasonal, and were only 3 pel' cent above those in November last year. ConsLruction activity in this district reflected a further improvement in November. The valuation of building per. mits issued at larger centers exceeded that of the previous month by 15 per cent and reached the highest figure reported in more than two years. The generally favorable weather during November enabled farmers to practically complete harvesting opera. tions, and the heavy rains over the major portion of the district were very beneficial to winter crops and livestock ranges. Small grains have made rapid growth since the rains and should furnish considerable pasturage later in the winter, partly offsetting the shortage of feed. Despite the improvement that has occurred, livestock and their ranges are still in poor condition. There was a further increase during the past month in the daily average of combined net demand and time de. posits of member banks in this district. The November average amounted to $792,953,000, which was $14,,777,000 larger than the October figure and the highest recorded since early in 1931. Commercial loans of reporting member banks in selected cities reflected a small seasonal decline between November 14 and December 12. While member banks com. pletely liquidated their indebtedness at the Federal Reserve Bank during the past month, this bank's advances to indus. trial and commercial businesses for working capital pur. poses showed a further expansion. Federal reserve notes in actual circulation totaled $53,236,000 on December 15 as compared with $54,261,000 on November 15, and $4.1,. 777,000 on the same date last year. Subscriptions to the United States Treasury bonds and notes, dated December 15, totaled $14,2,051,900 and allolments of $4,0,219,100 were made. BUSINESS The business of reporting wholesale firms in lhe Eleventh Federal Reserve District continued in fairly substantial volume during November, although decreases which are usual at this season were recorded in all lines except drugs. With one exception every line reported a larger volume of sales than in the same month last year, but the comparisons were somewhat less favorable than in October, Inventories generally declined during November. In three lines the volume of collections showed a seasonal reduction as compared with the preceding month. Wholesale Trade The demand for dry goods at wholesale showed the usual seasonal decline in November, the month's sales being one· fourth smaller than those in October. As compared with the corresponding month last year, there was a reduction of 10.3 per cent. While warm weather retarded consumer de. mand for merchandise in November, recent reports indicate that lower temperatures prevailing since late in November h~ve stimulated buying and that wholesalers have received numerous replacement orders. While collections were substantially smaller than in October, their ratio to total receivables outstanding at the close of the previous month was only slightly reduced. A decrease of somewhat less than seasonal proportions was reflected in the distribution of groceries lhrough whole. sale channels in this district. November sales were 8.5 per This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW cent less than those reported in the previous month, but showed an increase of 9.8 per cent as compared with the ' same month last year. Inventories were reduced 3.5 per cent during the month, but on November 30 were 20.2 per cent greater than a year ago. Collections were 12.8 per cent less than the volume reported in October. Contrary to the usual seasonal trend in this month, the distribution of drugs at wholesale increased somewhat further during November. The combined sales of ten report· ing firms were 0.7 per cent larger than in October, and 11.6 per cent above the volume of November last year. Stocks on hand November 30 were 8.0 per cent less than a month earlier, but 8.0 per cent greater than a year ago. The rate of collections during the month was higher than in October. The business of wholesale hardware firms in this district last month, while on a scale 5.7 per cent above that of November, 1933, reflected a seasonal decrease of 8.6 per cent as compared with October. An improved demand for merchandise was visible in some areas. Collections during November were in materially larger volume than in the preceding month. A larger than seasonal falling off in sales was reported by wholesale farm implement firms last month, November business being 29.3 per cent below that of October. It CONDITION OF WHOLESALE TRADE DURING NOVEMBER. 1034 Poroontago of inoreaso or deorenso in- Grooeries ......... Dry good ......... Farm imploments.. Hardware ........ Drui............. Not SaI08 Net SalO8 Stocks Ratio of oolleo· Nov., 1034 July 1 to dato Nov., 1034 tiona during Nov. oompared with compared witb compared with to nocount. and Nov., Oot., .arno poried Nov., Oct., noto. outstanding 1033 1934 lnst yen, 1033 1034 on Ootober 31 + 0.8 - 8.5 +15 .0 +20.2 - 3.5 00 .4 - 10 .3 -25.0 + 7.7 + 5.8 - 8.3 38 .0 +40.5 -20. 3 +66 .0 + 5.7 - 8.6 + 6.7 - 3.6 - 2.1 51.8 +11.6 +.7 + 0.6 + 8.0 - 8.0 50.1 showed an increase of 4.9.5 per cent as compared with the same month last year, while for the period from July to November, inclusive, a similar gain of 66.0 per cent 1Vas registered. The month witnessed a moderate decline in col· lections. Retail Trade Due to the widespread Christmas shop· ping and the lower temperatures late in November, department stores located in principal CItIes of the Eleventh District witnessed a very active demand for merchandise. Dollar volume of sales, which ordinarily declines seasonally during November, was approximately the same as in October, and was 19.1 per cent in excess of that in the corresponding month last year. This bank's seasonally adjusted index of department store sales increased from 74.3 per cent of the 1923-25 average in October to 79.3 per cent in November. The combined sales of merchandise during the eleven months of the current year remained 22.4. per cent greater than in the same period of 1933. Reports on December business at department stores indicate that consumer buying is heavy, and that there is a greater tendency toward purchasing qual. ity merchandise. Stocks of merchandise held by reporting firms on No' vember 30 were 0.6 per cent less than a month earlier, but continued 3.9 per cent greater than on the same date of 1933. The rate of stock turnover during the eleven months of 1934. was 2.76, as compared with 2.53 in the like period of the previous year. Collections on both open and installment accounts reo f1ected a slight decline during the month. The ratio of November collections to regular accounts outstanding on November 1 was 39.8 per cent, as against 40.4. per cent in October, and 35.0 per cent in November, 1933. Collections on installment accounts declined from 15.1 per cent in the earlier month to 14.4, per cent in the latter month. BUSINESS OF DEPARTMENT B1'ORES Tolal .ales (percentage): November, 1034, compared with November, 1033 . .. . ... ... . • .. ....•.... .. ...... . November, 1084, compared with Ootober, 1034 ....... . .... . . .. . ..... ... . ......... January 1 to date compared with same period l.sl year ... . .•.. . ..........•.... . • . Credit sales (percontage): November, 1034, oompared with Novomber, 1983 ........ . ....................... November, 1084, oompared with October, 1934 ................ . ...... .. .... . . .... January 1 to dato eomparod with same period Insl year ..... ..• ......... .. ........ Stocks on hand at end of month (percentage): November, 1034, compared with November, 1033 .. ... .. . .... •... .. .. ... . .... .. .. Novembor, 1084, oompared with Ootober, 1034 .. ..... . .. .. . .......... . ........... Stock turnover (rate): Rate of stock turnover in November, 1038 ....................................... Rate of stook turnover in November, 1984 .... . .................................. Rato of stock turnover January 1 to November 30, 1033 ........... . .. . .. . ........ nate of stook turnovor January 1 to November 30, 1084 . .... . ...... .. . . .... .. . , . . Ratio of Nov. oolleotions to open acoounts recoivablo outstanding Nov. I, 1984 .. . . ... ... Ratio of Nov. eolleetlons to installment aooounts reoeivable outstanding Nov. 1, 19S4 . .. .. Indox08 of dopartmont storo sale.: Unadjusted- Ootober, 1034.. ....... . ..... . .. . .. . .. . . . ..... .. . . .. . .. . .......... Unadjusted- November, 1034 .......... .... .. ... .. .. . ..... .... . .. .. ....... . .... Adjusted- Ootober, 1934 .. ................................. ... ............... . AdJusted-Novombor, 1034 .. .. .. ....... . ............... .................. ..... Index08 of dopartment store stooks: Unadjusted-Ootober, 1934 ...... . .. .. . . .. . ..... . .............................. Unadjusted-November, 1084 ......... . .................. ......... ......... .. .. 1~i~::~=g~~=be;~%34·. ·. : '. '. : '. '. : •. : : : '. : : '. '. : '. '.•. : : '. '. : '. : : : '. '. '. : '. : '. '. '. : : '. '. : '. '. : '. '. : : Dallas +27.3 - 8.5 +27.0 Fort Worlh +12.0 + 3.7 +13.7 Houston +12 .0 +II .8 +22 .5 San Antonio +29.4 + 3.4 +23.1 Other. +11.1 - 1.1 +18.1 Total District +19.1 .3 +22.4 +29 .9 - 8.7 +27.6 +13.7 + 3.1 +14.2 +14 .9 + 0.0 +24.0 +27.0 + 1.8 +24.0 +15.G - 2.5 +17.6 +22.4 - 2.4 +23.3 + 4.8 - 1.0 - 3.4 + 1.0 +10.5 + 1.6 +12.0 + .1 - .24 .25 2.57 2.62 41.2 - .5 2.3 - + 3.0 .6 .24 .29 2.71 3.07 30.0 16 .9 .21 .24 2.15 2.83 35.5 05.1 94 .6 78.0 80.2 8G.0 96.4 75.4 80 .3 85.7 105.9 82.4 00 .5 71.0 79.4 63 .4 09.0 85 .4 92 .0 74.3 79.3 61.0 60.0 54 .5 55.0 74,9 76.3 65 .1 67.5 67.G 56.7 ~9. 7 49.3 48.6 51.2 43.0 40.1 64.4 M.2 57.0 57 .8 .2G .80 3.09 3.30 45.8 8.8 . 20 .23 2.17 2.20 38.7 23.0 .28 .26 2.53 2.70 39.8 14.~ The business mortality rate was lower rated, showed a total of 17 commercial failures during the during November than in October, al· month, as against 20 in October, and 32 in November last though the liabilities of defaulting firms year. Total indebtedness amounted to $223,903, which corn' registered an increase. The comparisons with a year ago . pares with $189,152 in the previous month, and $527,099 continued to be very favorable. Figures covering the Eleventh District and released by Dun & Bradstreet, Incorpo- in the same month a year ago. Commercial Failures MONTHLY BUSINESS REVIEW 3 AGRICULTURE Crop Conditions General rains which fell over most sections of this district during the past month were very beneficial to agricultural areas. Water supplies have been replenished and soil moisture in most areas is adequate for the present. Farmers who had delayed plowing operations because of dry soil were enabled to proceed with this work and to complete the fall seeding of small grains. Since the rains, small grains in practically all sections have come up to a good stand and are making rapid growth, but plants generally are small for this season of the year. In the grain sections of west and northwest Texas, there is still a deficiency of subsoi l moisture and more rain will be needed in the near future to maintain plant growth. Weather conditions during the past month have likewise been favorable for harvesting operations and this work is now practically completed. The December 1 report of the Department of Agriculture made only minor changes in the estimated production of cotton in states attached to this distric~. While downward revisions were made in the estimates for Oklahoma and Louisiana, these reductions were about offset by increases in the estimates of Arizona, New Mexico. and Texas. The production in the latter state was placed at 2,395,000 bales, as compared with an estimate of 2,390,000 on November 1, and an actual production of 4,,428,000 bales in 1933. The indicated per acre yield was placed at 110 pounds as compared with 185 pounds last year. According to the Bureau of the Census there had been ginned in Texas 2,176,691 runninO' bales prior to December 1, which represents 95 per cen~ of the forecasted production. While the Department made little change in its forecast from a month ago for the State the estimate for each district within the State was revis~d. The indicated production in the Northwest Rolling Plains the Coastal Plains, and the South Texas districts was l~wered, and that for all other districts was increased. The following table gives the revised estimate for each district: TEXAS-PRODUCTION OF COTTON BY DISTRICTS (In thousands or 500-pound G. W. B.) Distriot. N. W. Righ Plains . ....... ..• ....... N. W. Rolling Plains . .. .. .. ••. ...... North Centml Plain•... . .. . • . ...... North B1aoklallds ....... .. ...•. .... ERst rrcxns . . ...... . .............. . Trans-Pecos . ..... . ... .•. ... . • .... . Edwards Platenu .....•...... .. . .... Southern Prairies .. . .. . ............ . Coastal Plains ... .. ..••... . .•...... South TOxlIB .••••• •• . •.••....• ••• •· Total Stato . . .......... ... .. •. Foreoast 1034 100 250 63 751 420 62 50 440 124 126 2,305 Produotion 1033 453 054 148 1,211 589 58 71 637 192 120 4,428 6~ycl\r average 1928-1032 423 759 119 1,347 770 60 103 643 204 152 4,580 The poorest outtum of the cotton crop occurred in Oklahoma. The Department's December 1 report placed the per acre yield at 57 pounds, the lowest on record, and the total production at 325,000 bales, whereas last year the per acre yield was 208 pounds and the total harvest was 1,2661,000 bales. The crop of Louisiana and Arizona ~as slightly larger than a year ago, and that for New MeXICO was about the same. The per acre yield in each of these states was larger than in the previous year. Ginnings, prior to December 1, were as follows: Louisiana, 469,862 bales; New Mexico, 77,781 bales; Oklanoma, 281,088 bales; and Arizona, 80,155 bales. The Departm.ent of Agriculture reported that the harvesting of fall snap beans, peppers, egg-plant, and tomatoes continued throughout November without frost damage. The condition of winter crops showed a marked improvement in November and soil moisture throughout South Texas is ample for good crop progress. While plantings of several crops were retarded by dry weather earlier in the season, they have continued active. Some crops are expected to be late on account of the delayed plantings. The condition of ranges in most areas of this district showed some improvement in November due to the fairly general rains. Ranges generally, however, are still in poor condition, particularly in the western third of Texas and southern New Mexico. The most serious situation obtains in the southwestern half of the Edwards Plateau and the Big Bend area of Texas and in portions of southern New Mexico. These areas have had little rain and ranchmen are feeding "sotol" and "prickly pear" as these are practically the only feeds available. Wheat pastures in Northwest Texas were benefited by the rains and snows and will furnish some pasturage later in the season, but considerable dry feeding will be necessary. In other areas, prospects were im.proved by the November rains and there is probably sufficient feed to carry stock through the winter. The best condition obtains in the southern .district of Texas where feed and grazing are being furmshed to a large number of cattle from drouth stricken areas. Livestoclc The condition of cattle ranges in Texas on December 1 as reported by the Departmen~ of Agriculture, was 52 pe; cent of normal as compared WIth 50 per cent on November 1, and 71 per cent a year ago. There was an increase from 4.1 per cent to 45 per cent in the condition of sheep and goat ranges between November 1 and December 1, and the latter figure compares with 6,2 per cent on the same date in 1933. The condition of cattle in Texas was rated at 60 per cent of normal on December 1, which was 1 point lower than a month earlier and 16 points below that on the corresponding date last year. During November the condition of sheep rose 2 points and that of goats 1 point. As cOln:pared with a year ago, the condition of sheep on December 1 was 11 points lower and that of goats 10 points. Movements and Prices There was a general decline in the receipts of livestock at the Fort Worth market during November, due in part to the reduced purchases by the Federal Government. While there was only. a slight recession in the number of hogs yarded, the arnvals of cattle, calves, and sheep reflected substantial declines from October. As compared with NoCOMPARATIVE TOP LIVESTOCK PRICES (Dollnrs per hundredwoight) November Beer steors .. ............ . .. . . .. ... .. . ... . Stooker steers .. . ..... . . . ................ . Butoher oows ........................... . Stooker cows ..........• . . . . ...•..... ..• . . Calvcs ........... . ..................... . Rogs ............................ . . .. ... . f~:Cs::::::::::::::::::::::::::::::::: : 1034 $6.35 4.00 3.25 4:75 6 .40 3.25 6.00 November 1983 $6 . 00 3 .00 3 .00 2.20 3.75 4.70 3.25 6.25 Ootobor 1034 $7.25 4.60 3.60 2.25 4.60 6.35 3.25 6 .00 4 MONTHLY BUSINESS REVIEW vember, 1933, receipts of all classes registered noticeable gains. The demand for most classes of cattle was slow during the past month and the market generally was weak. During most of the period quality offerings were scarce, but these offerings usually found an outlet at better prices. The hog market fluctuated within narrow limits. Sheep and lamib prices were firm to slightly higher. FORT WORTH LIVESTOCK RECEIPTS (Number) Cattle .......... . Calves . . ..... . . . Hogo . .. . .... . • .. Sheep .... . ..... . November 1034 68,410 33,646 26,486 47,432 November 1033 3a,107 28,735 23,420 25,000 Ch~llge Octeber 1034 73,370 60,071 26,688 98,027 over year +25,213 4,811 + 3,356 +21,526 + Changeover month -14,068 -17,426 103 -60,695 FINANCE During the past month member banks in this district completely liquidated their indebtedness at the Federal Reserve Bank, while on December 15, 1933, loans to member banks totaled $1,003,000. There was a further increase in the advances by the Federal Reserve Bank to established industrial and commercial businesses for working capital purposes. The total of these loans on December 15 was $708,000 as compared with $576,000 a month earlier. The holdings by this bank of bills bought in the open market and of United States securities showed no change during the month, the totals on December 15 being $154,,000 and $71,475,000, respectively. The reserve deposits of member banks with the Federal Reserve Bank, which stood at $127,670,000 on November 15, declined steadily during the subsequent three weeks reaching a low point at $119,809,000 on December 5. By the middle of the month they had risen to $125,623,000. Federal reserve notes in actual circulation amounted to $53,236,000 on December 15 as compared with $54,,261,000 a month earlier and $41,777,000 on the corresponding date last year. Operations of the Federal Reserve Board CONDITION OF THE FEDERAL RESERVE BANK (In thoulanda of dollar.) Totalcaeh reservco ............. . ..•... . . . Discount... fer membor hank •. ... .....•..... Industrial ndvancco ..... , . . . ......•. .. ... . Billa bought in open market ..... . ..•.... . • United State. 8ccuritiea owned ............ . Other invcotmenta ........... . ....... . ... . Total onrning ll88et... ..... . . . ............. . Membor bank reserve deposit... . . . ... . ..... . Federal reserve nolne in actual circulation .. . Federal reservo bank notes in actual circulation . .. .......... . . . ... . .. . .. ....... . Dee.15, 1934 '124,082 None 708 154 71,475 None 72,337 125,623 63,236 Dec. 15, 1033 $ 07,041 1,003 None 4,542 66,475 6 72,025 102,867 41,777 Nov. 16, 1034 1120,3M 17 676 154 71,475 441 72,663 127,670 54,261 None 12,325 CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In theu.and. of dellar.) United Statea securitico owned . . .. .. ..... . . All other .tock., bonds, and seeurities owned. Leans on .eeurities ...................... . All etherlean......................... .. . Totnlloans . ................ .. ... . ...... . Net demand deposita .................... . Time depOHit... .. . ....... .. ............... . Reserve with Federal Reserve Bonk . . .... . . Bill. payable and rediscount... with Federal Reserve Bank ......•................... Dec.12, 1034 $167,823 50,084 48,002 145,812 104,804 311,385 123,001 78,330 Dec.13, 19a3 $125,081 54,592 58,603 153,005 211,788 267,020 120,200 63,510 Nov.14, 1034 '174,082 59,428 40,200 147,301 106,501 317,442 122,800 80,090 Nene 400 None Deposits of Member Banlcs For the sixth consecutive month the daily average of net demand and time deposits of member banks in the Eleventh Federal Reserve District during November reflected a substantial increase over the previous month and was also considerably larger than in the same month last year. The combined average amounted to $792,953,000, as against $778,176,000 in October, and $654,,145,000 in November a year ago . In the case of both comparisons the increases shown were about equally divided between reserve city banks and country banks. None During the four-week period between November 14 and December 12 the reports of member banks in selected cities reflected a decline in loans, investments, and deposits. The investments of these banks in United States securities declined from $174,,982,000 on November 14, to $167,823,000 on December 12, but their invesLments in all other securities rose $556,000 during the same period. As compared with the corresponding date in 1933, holdings of United States securities were $4,2,742,000 larger and those of other securities were increased $5,392,000. The loans of these banks on securities declined $208,000 during the four-week period, and on December 12 were $9,701,000 smaller than a year ago. "All other" loans (largely commercial) reflected a seasonal recession of $1,· 4.89,000 between November 14, and December 12, and on the latter date were $7,283,000 below those on December 13, 1933. After reaching a peak of $317,442,000 on November 12, the net demand deposits of these banks reflected a Condition of Member BanI,s in Selected Cities recession of $6,057,000 during the subsequent four weeks, but the total on December 12 was $4,3,4,65,000 higher than a year ago. Their time deposits registered a further rise of $231,000 during the four weeks and at the end of the period were $2,882,000 greater than those on December 13 last year. DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In theUlland. ef dollars) Comhined Tetal Nov., Dec., Jon., Feb., Mar., April, May, June, July, Aug., Sept., Oct., Nev., Net demand deposito 1033 .... . . $466,198 19a3...... 404,170 1934. . .... 505,909 1934...... 532,717 1084...... 536,355 1034 . ..... 523,397 1934...... 616,090 1034...... 619,465 1034...... 521,338 1934. ... . . 527,054 1934...... 557,318 1934. .. .. . 583,558 1934..... . 506,441 Rcoerve City Bank. Time Net demand deposito deposit... $187,947 $228,265 186,687 240,971 102,21t 240,091 105,746 261,770 102,706 20R,29 1 192,548 257,838 192,830 253,752 192,712 250,456 107,600 255,210 100,825 260,061 194,216 275,831 104,618 287,250 190,512 202,685 Country Banb Time Net demand Time deposit... deposit... deposita $106,014 1237,03a $81,033 106,132 258,205 80,555 108,317 256,818 83,897 110,348 270,047 85,398 108,386 ~72,064 84,381 107,615 265,559 84,9a3 108,146 262,388 84,684 109,597 208,009 83,115 112,632 266,123 85,058 111,651 206,903 85,274 100,110 281,487 85,105 109,459 200,308 85,159 111,082 303,756 86,430 Debits to individual accounts during November at banks in principal centers in this district totaled $548,669,000, as compared with $627,184.,000 in October, and $530,4.91,000 in November a year ago. The decrease from October amounted to 12.5 per cent, being somewhat larger than the decline which usually occurs at this season. At Roswell, New Mexico and Tucson, Arizona the volume of Debits to Individual Accounts MONTHLY BUSINESS REVIEW debiLs reported was greater than in either the previous month or the same month last year. Acceptance Market Following four months in which seasonal increases occurred, the volume of outstanding bankers' acceptances executed against both import and export transactions and the domestic shipment and storage of goods declined in November. Those in the former classification totaled $169,986 at the close of the month, as against $359,770 on October 31, and $14.5,626 on November 30 last year. Acceptances based on the domestic shipment and storage of goods aggregated $981,090 on November 30, which compares with $1,279,705 a month earlier, and $2,908,860 a year ago. DEBITS TO INDIVIDUAL ACCOUNTS (In thousand, of dollars) Abilene ..... .. . . Austin ..... . .... Beaumont ....... Corsicana ....... Dallas .......... EI Paso ..... . ... Fort Worth . ..... Galveston ... . ... Houston ....... . . Port Arthur ..... Roswell ... .. . . . . San Antonio . . . . . Shreveport . . .... Texarkana- ...... Tucson ..... ..... Waco ........... Wichita Falla .... November 1034 S 5,070 22,204 16,805 2,474 150,SOI 20,505 57,029 17,611 130,300 5,123 2,707 40,019 28,210 5,007 7,826 11,418 0,746 Percentage November ohango over 1033 year - 24 .0 S 7,800 13,571 +04 .3 13,137 +20.3 2,870 - 13 .8 104,407 - 4.6 16,602 +24 .2 64,831 + 5.1 20, 128 - 12.6 130,300 0.0 5,137 .3 2,340 +15.7 39,158 +25 .2 26,352 + 7.1 5,064 + .1 6,932 +12 .9 11,565 - 1.3 10,268 - 5. 1 October lD34 $ 7,274 20,003 16,858 3,021 183,144 22,6 18 63,171 20,727 147,937 5,702 2,678 52,280 33,927 6,875 7,053 13,053 10,064 6 Percentage ohange over month -17.8 -25.7 - 6.2 - 18 .1 - 14 .3 - 0.1 - 8.8 - 16 .0 - Jl .9 - 10 .2 +1.1 - 6.3 -16.9 - 13.8 +10 .0 - 18.2 -11.1 Savings Deposits Reports received from 129 banks in this district which operate savings departments showed total savings deposits on November 30 amounting to $14.5,725,690, reflecting a further increase of 0.9 per cent during the month, and an expansion of 10.2 per cent as compared with the same date a year ago. At the close of October the savings deposits of these banks aggregated $144,,4402,282, and on November 30 1933, the total was $132,256,304,. ' Total. .... 5548,669 $530,491 $627,184 - 12 .5 + 3.4 -Includes the figures of two banks in Tcxarkana, J\.rkansas, located in tho Eighth District. SAVINGS DEPOSITS Number of rec~~~;g Bcaumont ............ ... .. Dallas ..... . .............. EI Paso ...... . ......... ·· · Fort Worth . .... . .......... Galveston ....... . ..... .. .. Houston ............... . . . . Port Arthur ................ SlIn Antonio ............... Shreveport ....... . ..•.. . .. Waco . ................ . . . . Wichita Falls ........ . •.. .. All others ... ......... ..... a 02 3 4 11- 2 6 3 3 3 80- -- November 30, 1934 Number of Amount of November 30, 1933 Ameunt of Number of depesitors 8,534 75,731 11,469 33,964 10,800 04,601 5,020 20,726 20,018 10,770 5,801 depositors 8,071 73,308 9,784 31,510 16,491 64,304 4,066 17,852 21,358 10,480 5,541 50,755 sBvings ~3,817 - -- savi n~s deposits $ 3,508,003 25,064,273 4,070,292 10,477,408 0,860,114 29,260,665 1,000,850 15,706,146 10,640,028 6,310,255 2,008,402 24,914,334 over yenr In ao.vings sByings SAvings savings deposits +16 .5 +7.4 +24.8 .3 .7 + 7.3 + 7. 1 17 . 6 7.3 +11 .0 + 17.4 +10.5 deposits $ 3,010,835 23,326,005 3,986,404 10,506,508 0,926,855 27,269,030 1,867,166 13,434,118 9,918,632 5,685,449 2,478,276 20,846,061 --- October 31, 1934 Number of Amount of Pcrecntage c~ange t --+10.2 EI Paso Dallas !'l 2-6 6-8 Houston San Anlonlo Waco 1-7 5-7 5-6 5- 8 6 3-0 5- 7 5-7 3-7 7- 10 6- 8 6-8 5- 8 8- 10 6-8 0- 8 6-6 8 2~· 0 3~7 8-8 8 7-8 6-8 6- 10 6 --+ .9 Fort Worth ~-6 l U-8 1~,590,242 10,611,144 6,233,307 2,898,314 24,022,179 Prevailing rates: ~ -6 2 -8 Porcentage chonll' over month In aa vinga deposlto + .5 + .6 +2.7 + .7 - .3 + .8 - .2 +1.3 +1.2 +1.2 + .4 +1.2 $144,442,282 --- DECEMBER DISCOUNT RATES Rate charged customers on l.rime commercial papcr such OIl that now eligible for rediscount under the ~'e eral Rescrve Act ................................... Rllte charged on loans to other blinks secured by bills receivllble .. . . ............... Rnte on loans secured prime stock exohange or other current collateral (not including loans plac ia other markets through correspondent banks): Demand ....... . ... . . .... .... . ....... · ....... · .... ······.·· · ··· .. ··· . Timo ................. ····· .. · ··········· · ····:·········· .... ··· · ·· . Rate charged on eommodity papor sccured by warehouao receipts, etc .....•.... . .• . . Rllte on cattle lonns .......................................................... depOllits $ 3,491,428 24,022,573 4,844,732 10,399,034 0,893,148 29,030,442 2,003,130 326,577 - 129 328,250 S145,725,600 $132,256,304 Total. .......... 314,219 -Only 8 banks in Dallas, 10 in Houston, and 72 in "All others" reportcd the number of savings depositors. aavln~s depositors 8,522 75,507 11,348 33,830 10,818 64,313 4,046 20,409 20,809 10,764 5,870 53,441 ~ - 10 6- 8 6- 10 5~ INDUSTRY The receipts of cottonseed at Texas and all United States mills reflected a seasonal decline in November and were materially smaller than in the corresponding month last year. While the crushings of seed and the production of all classes of products at Texas mills increased from October to November, they were still considerably lower than in November, 1933. During the first four months of the current ~eason, the receipts and crushings of seed and the productIOn of all classes of products at both Texas and all United States mills were substantially smaller than in the same period of the previous season. Stocks of cottonseed oil on hand on November 30 were sharply lower than either a month earlier or a year ago. The November 30 supplies of cake and meal, Cottonseed Products STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texas United States Angust 1 to November 30 August 1 to November 30 rrhis Benson Last season 'fhis Bonson Last season Cottonseed received lit mills (tons) ..... . ............... 597,075 1,045,070 2,777,028 3,115,800 CottollBeed crushed (tons) .. ... 417,434 655,725 1,767,722 1,983,047 Cottonseed on hllnd Nov. 30 (taus) ........... . ......... 282,402 488,648 1,232,067 1,353,091 Crude oil predueed (pounds) ... 119,836,400 193,588,171 642,699,882 613,108,023 Cake and meal produced (tons) 198,621 304,202 709,313 892,380 Hulls produecd (tollB) ......... 110,468 183,349 450,019 537,325 Linters produced (running bales) ...... . ..... . ....... . 85,559 102,553 370,550 353,886 Stocks 011 hllnd NoVQmber 30: Crude oil (pounds) ........... 12,851,905 37,252,755 46,408,934 123,403,123 Cake and meal (tons) ... . . . ... 77,088 88,291 290,200 310,078 Hulls (tons) ................. 57,502 60,732 109,906 147,041 Linters (running bales) . ....... 41,642 44,571 103,757 100,148 MONTHLY BUSINESS REVIEW 6 hulls, and linters at Texas mills were lower than on October 31 this year or November 30 last year, but at all United States mills supplies of these products were larger than a month earlier and stocks of hulls and linters were above those on the same date a year ago. Textile Milling The consumption of cotton at textile mills in the United States, after showing a large increase in October, declined duro ing November. The 477,060 bales consumed in the latter month, however, was slightly larger than the 4,75,24,7 bales consumed in the corresponding month of 1933. The consumption of cotton at domestic mills during the four months of the current season was 1,714,,279 bales, or 17.1 per cent below that in the same period of the previous season. Mills continue to carry substantially smaller stocks of raw cotton than was the case last year. COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (BnIC.'l) November 1934 Reeeip~............ .. ....... 164,315 Ex por~ . . . . . . . . . . . . . . .. . . . . . 115,872 Stocks , November 30 ........ . COTTON CONSUMED AND ON HAND November 1034 Cotton-growing .~n~cs: Co~ton con.umed ... . .. . .... On band November 30 inConsuming cs~a bli.bmen~. Public .~oruge nnd compre.scs ........ . ....... Unl~ S~n~cs: Co~ton consumed . .... . . .... On hnnd Novembor 30 inCon.uming cstnbli.hmont•. Publie . torage and comprCSBCS .. .. . . ......... . Novembor 1933 385,449 379,238 AU$u.~ 1 ~o November 30 'fhl8 Bcnson Last Bcason Nov.30, 1933 12,000 9,000 44,500 2,500 830,208 653,936 ..... ... . ... .......... ......... . . . 808,208 COTTON MOVEMENTS THROUGH THE PORT OF HOUS1'ON (Balcs) Novembor 1934 155,945 Roceip~ .... ...... . . . ... . . . . . Expo r~ .. . .... ... .. . . . ..... . 162,790 Stooks, Novembor 30 ..... • .. . Novembor 1933 300,523 324,580 1,375,155 10.043.534 1,714,270 2,067,686 1,293,763 1,572,740 Reoeip~ .... . . . . . . . . . . . . . . . . . . . ... . . . . .. .. . . . . . . . . . .. Expor~: Uni~ed Kingdom. ..............•......•..... 9,794,811 10,404,394 Franoe..................................... Italy.... . . .. .. .. . .. . .. . ... . . . . .... . . . . . . .. . Germany .... .. .. . . . . . . .... . . . . .... .. . . . . .. . Other Europo...... . .. ...... ....... . .. ...... Jafan.. ..... ............................... AI other countries.... ...... .......... ....... To~al foroign por~ . . . . ........ ...... ..... .. .. ... .... . S~ock. beld at all Uni~ S~n~e. por~. Novembor 30....... Au~u.t 1 ~o Novembor 30 Thl •• "".on Last .eason 820,300 1,610,617 514,877 1,186.018 1,119,982 1,578,147 1,650,552 1.245. 147 0,579,626 475,247 Nov. 30, 1934 6,600 4,500 42,900 800 500,136 For Grent Britain .... .. ...... . ..................... . . For Franoo ..... . .. . ... . .. .. .... . ......... . ......... . For o~berforeign por~ .... ...... . ................. , .. . For coas~wise por~ . ... . .... . . . .. . ................... . In comprC.'lScs nnd depo~ ..................... . . ..... . . 1.044.645 477,060 Augu.t 1 to Novembor 30 Thi •• eason Last .eason 1,273,561 622,089 479,646 810,350 653,936 808,208 COTTON-GALVESTON STOCK STATEMENT (Bnlcs) To~ni. The activities of reporting textile mills in Texas were about the same in November as in October, but were on a smaller scale than a year ago. Unfilled orders and stocks of merchandise on hand at the end of November at these mills were larger than a month earlier or a year ago. Novembor 1933 400,554 304,222 Movements of cotton through the ports of Houston and Galveston remained at very low levels during the month of November. Exports, which ordinarily show a seasonal increase in that month, were less than in October at both ports, and the comparisons with the corresponding month of 1933 reflected reductions of more than 4,9 per cent. Receipts of cotton from the interior were likewise substantially smaller than in either the previous month or the same month last year. During the first four months of the current season, August 1 through November 30, exports aggregated 994,,523 bales for both ports combined, which compares with shipments totaling 1,996,368 bales in the corresponding period last season. Stocks of raw cotton held at Galveston on November 30 were greater than a month earlier, while at Houston they evidenced a decline. Both ports continue to carry smaller supplies than on the same date of 1933. Cotton Movements Exports of American cotton from all United States ports also reflected a contrary to seasonal decline during November, and remained in substantially smaller volume than in the corresponding month of 1933. There were 572,359 bales of cotton exported during the month, as compared with 615,593 bales in October, and 915,304 bales in November, 1933. Aggregate exports of domestic cotton during the first foul' months of the current season were 1,935,375 bales, which represents a decline of 42.4, per cent from the 3,359,999 bales shipped in the same period of the previous season. Shipments to all foreign countries, and especially those to Continental Europe, continued light. SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTB--(Bnles) AU$u.t 1 to November 30 Tht ••enson La.t .enson 2,024,047 4,732,984 259,022 576.279 168.578 414,836 187,262 207,307 168,505 635,140 313,359 412,208 704,117 801,560 134,582 222,579 1,935,375 3,350,909 3,208,671 4,146,874 SPOT COTTON PRICEB--(Mlddliug Basi.) (Cen~ per pound) Newyork .. . ........................... . Now Orlean............................. . Dallas .. .. ....... . . ................... .. Hou.~on ......................... . ..... . . Gnlvcslon .............................. . Novembor, High 12.85 12 .91 12.55 12 .85 12.85 1084 Law 12.25 12.34 11 .90 12.35 12.30 Dec. 15, 1934 12.80 12.77 12.35 12.70 12.75 PetroleZLm While the daily production of crude oil in this district during November was slightly higher than in October, the month's total output reflected a reduction which was attributable to the smaller number of days in November. The total production reported was 30,762,000 barrels, as compared with 31,757,950 barrels in the previous month, and 28,859,4.00 barrels in the same month last year. Drilling activity, as evidenced by the number of wells completed during the month, turned downward again in November. There were 796 completions, as against 961 in October, and the initial yield from successful wells amounted to 1,801,590 barrels, as compared wiLh 2,576,082 barrels in the preceding month. The daily yield from fields located in Texas averaged 955,300 barrels in November, this figure being 500 barrels MONTHLY BUSINESS REVIEW )!lrger than that of the previous month, and 61,223 barrels in excess of the amount reported in November, 1933. Decreases from October in the northern, central-western and coastal sections of Texas were offset by the gains sho~n in the eastern and southwestern areas. In New Mexico and North Louisiana the daily output was slightly above that of October. OIL PRODUCTION-(Barrcls) North TOlns. . . . . . . . . . . . . . . .. Central West Texas. . . . .•.... East 'rexns. . . . . . . . . . . . . . . . . . South Texns . ................ Texns Constat. .... . . . . . . . . . .. Inorcnso or decrease over October, 1031 Total Daily Avg. -221,2.50 -3,550 -218,050 -1,650 -244,300 +6,750 - 32,450 + 850 -223,750 -1,060 November, 1034 Total Daily Avg. 3,336,000 111,200 5.007,000 166,000 13,606,500 453,550 1,704,000 58,800 4,045,500 164,850 Total Telns ..... , ... 28,650,000 New Mexico.. ... ... . ... .. ... 1,383,000 North Louisiana............. . 720,000 055,300 46, 100 24,000 -030,800 - 38,350 - 17,800 + 500 + 260 + 200 Total Distriet ...... : 30,762,000 1,025,400 - 905,050 '1 + 050 CRUDE OIL PRICES Telns Constal (34 gr. and above) ....... . ....... . ...... . North Texns (40 sr. and above) ... . . . . ..... . .......... . North Louisiana (40 gr. and above) .................... . NOVEMBER DRILLING RESULTS North Texns ............... Central West Telns ...... . .. Enst'l'cxns ................ South Telns ............. . . Texns Constat. ............. Completions 205 78 260 126 62 Produoers 128 55 248 60 30 Gns wella 4 1 1 6 6 Failures 73 22 20 61 17 740 18 38 520 12 11 18 2 11 103 4 16 1,788,607 12,600 383 November totals, distriot ... . Oetober totals, distriot . ..... 706 061 552 701 31 33 213 227 Dee.16, 1033 51.12 1.03 1. 03 (Oil statisties oompiled by "The Oil Weekly", Houston, Telns) Initial produetion 20,140 40,079 1,670,560 20,397 10,431 Total Telns ....... New Mexieo . . ... ... . ...... North Louisiana ..... . ... . . . Dco.14, 1034 51.12 1.03 1.08 1,801,500 2,576,082 Building Construction activity at leading cities in this district increased further in Novem~er, as evi.denced by a substantial gain in building permits lssued dUrIng the month. These reached a total valuation of $2,065,288, as compared with $1,790,818 in October and $682,9~5 in November a year. ago. The cities reporti~g an expansIon over both comparatlve months were Austin Corpus Christi, Dallas, Fort Worth, and Shreveport. ' BIDLDING PERMITS November, 1034 No. Amarillo ....... Austin .. ...... . Beaumont . .. . .. Corr,us Christi .. Dai ns ......... EI Pnso ........ Fort Worth .... . Galveston .... .. Houston .. ...... Port Arthur .. .. San Antonio .... Shreveport ... . . Waoo ... ... .. . . Wiohita Falla .. . November, 1933 No. Valuation ------28 S 23,676 14 02 80 31 342 38 105 128 145 55 160 148 18 21 163,303 22,883 03,780 713,840 8,314 538,468 40,247 2.52,675 52,466 51,458 65,934 32,827 5,422 71 76 18 330 26 BO 00 117 41 163 110 20 9 S 3,327 88,828 15,675 12,7B8 128,610 39,785 40,160 40,388 130,800 B,026 90,904 25,083 44,912 3,710 -- - - - - - - - 682,005 1,300 $2,065,288 1,114. S Total. ..... ·lnorcaBo over one thousand per cont. Cement Valuation Peroentage change valuation over year +61J.6 + 83.8 + 46.0 +633 .3 +455.0 - 79 .1 + . .3 03.2 +553.7 - 48 .5 +158.8 - 26.0 + 46.1 --+202.4 Ootober, 1034 No. Valuation 42 $ 130,444 128 113,471 107 34,050 43 20,211 400 217,741 22,222 54 134 113,309 33,602 187 159 715,626 54 75,723 211,733 239 148 40,912 20 28,234 46 15,541 ----1,761 $1,790,818 Output of Portland cement at Texas mills in November amounted to 261,000 barrels, which compares with 164,000 barrels in October, and 132000 barrels in the corresponding month last year. The vol~me of shipments on the other hand, reflected a decline Percentage ohange valuation over month - 83.0 + 43 .0 - 32 .8 +364.0 +227 .8 - 62 .6 +375.2 + 10 .8 - 64.7 - 30.7 - 76.7 + 32.1 + 16.3 - 65.1 --+ 15 .3 January 1 through November 30 Peroentage ehango 1034 1933 valuation over No. Valuation period No. Valuation 325 $ 307,051 182 $ 152,474 +160 .• 037 961,243 023 1,317,753 - 27.1 1,001 305,686 025 187,056 + 62.6 303 407,163 268 156,779 +150.7 4,120 2,683,942 3,665 1,850,735 + 45 .0 458 231,793 383 200,168 15 .8 1,008 1,293,050 947 2,617,076 - 50.6 1,437 407,203 1,040 397,984 + 25 .0 1,984 4,485,300 1,921 2,907,017 54 .3 528 237,884 513 100,024 +137.8 1,618 B35,690 1,463 070,443 - 13.9 1,727 1,046,657 1,192 415,650 +151.8 200 302,237 248 318,113 5.0 679 235,822 289 78,531 +200.3 16,331 $13,920,820 13,050 $11,671,603 + 19.3 + + - - of 28.6 per cent from the previous month and totaled 212 _ 000 barrels as against 218,000 barrels in November, 1933. The stocks on hand November 30 amounted to 594.,000 barrels, being 9.0 per cent larger than a month earlier, hut 5.4, per cent below the level of a year ago. PRODUCTION, SHIPMENTS, AND STOCKS OF POR'fI,AND CEMENT (In thousands of barrels) Produotion at Toxns mills ........... . ......... .. . . . ..... . ...... .. ..... .. .... .. ..... . ... . ... . . . ........... . Shipmonte from Toxns mills ....... .. .... .. .. . . . . . ... . ............................ ... . . . . . . . . . . . . ......... .. Stoeks at end of month at Texas mills ..... . . . .............. . . . . . ... . . .. . . ... . ... . ......................... . Nov. 1034 261 212 594 Percentage ohango from Nov. Oet. 1933 1084 +97.7 +50.1 -28.6 -~2.8 -.5.4 + 0. 0 January 1 Pereentago through ehange over NOl'.30, year 1984 3,273 +16. 0 3,233 +12. 7 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the F eder a l Reserve Board. December 24. 1934) In November the rate of industrial activity showed little change and the general level of commodity prices remained unchanged. Distribution of commodities to consumers was well maintained. PRODUCTION AND EMPLOYMENT Volume of industrial production declined in November by an amount somewhat smaller than is usual at this season, and consequently the Board's seasonally adjusted index advanced from 73 per cent of the 1923-1925 average in October to 74. per cent in November. In the steel industry output continued to increase during November and the first three weeks of December, contrary to the usual seasonal tendency. Automobile production also showed an increase in the early part of December, following a decline in connection with preparations for new models. In November lumber output decreased by more than the estimated seasonal amount. At woolen mills there was a considerable increase in output, while consumption of cotton by domestic mills showed a slight decline. Activity at meat packing establishments showed less than the usual seasonal increase. Production of the leading minerals was at about the same level as in October. Factory employment declined between Ihe middle of October and the middle of November by the usual seasonal amount, and was at the same level as a year ago. Declines reported for the automobile, shoe, and canning industries were smaller than seasonal, while decreases at railroad repair shops and sawmills were larger than are usual at this season. At meat packing establishments, where employment has been at a high level in recent months, there was a considerable decline but the number on the payrolls in November was larger than in the corresponding month of other recent years. Employment at woolen mills showed a substantial increase. The number employed on construction projects of the Public Works Administration declined further in November, according to the Bureau of Labor Statistics. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, showed a considerable decline in November and the first half of December, following an increase in October. The indicated decline in awards from the third to the fourth quarter was somewhat smaller than usual. Department of Agriculture estimates for December 1 indicate that production of principal crops this season was about 22 per cent smaller than in 1933, and 32 per cent below the average for the previous ten years, reflecting reductions in acreage and in yield per acre. There has been a shortage in feed crops accompanied by a sharp increase for the year in the slaughter of live· stock. Although output of agricultural commodities has been smaller than in any other recent year, farm income has been larger than in either 1932 or 1933, reflecting chiefly higher prices, and, to a smaller degree, benefit payments. DISTRIBUTION Total freight-car loadings declined in November by less lhan the estimated seasonal amount, reflecting chiefly a smaller decline than is usual in shipments of miscellaneous freight. Retail sales generally have been well maintained. Department store sales increased by slightly less than the estimated seasonal amount in November; preliminary reports for the first half of December, however, indicate a more than seasonal increase in Christmas trade. WHOLESALE PRICES Wholesale commodity prices generally showed little change during November and the first half of December. Prices of scrap steel continued to increase during this period, while corn prices, which advanced rapidly in November, declined somewhat after the first week of December. Retail food prices declined in November, reflecting lower prices for meats. BANK CREDIT Developments at the Federal Reserve banks in December reflected largely the seasonal increase in the dernand for curIency and the continued inflow of gold from abroad. Loans and investments of reporting member banks in leading cities showed an increase of $150,000,000 in the four weeks ended December 12, after declining somewhat in the preceding four weeks. The growth reflected increases in holdings of United States Government obligations and in brokers' loans. Deposits at banks showed a further considerable growth. Yields on short-term Government securities declined slightly in December, while other short-term open-market money rates showed little change. On December 15 the discount rate of the Federal Reserve Bank of Atlanta was reduced from 3 per cent to 21;2 per cent, and on December 21 a similar reduction was made at the Kansas City Federal Reserve Bank.
