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Mont ly Business Review OF THE FEDERAL RESERVE BANK OF DALLAS • (Compiled December 15, 1936) = Volume 21, No. 11 ~ Dallas, Texas, January 1, 1937 This COpy is released for publieation in afternoon papers- Dec. 30 ==============================================================~~========= DISTRICT SUMMARY l I THE SITUATION AT A GLANCE Eleventh Federal Reserve District Ch.nge from November 1936 gank debits to individual accounts (at 18 cities) . $774,362,000 nepartment store sales............................... ............... ............... . cScrve bank loans to m ember banks at end of tI month ......................................................................... $ 10,022 CU ding permit valuation at larger centers ........ $ 3,5H, 273 Commercial failures (number)................................. 15 O¥;nmereial fallures (liabilities) .............................. $ 204,000 production (barrels) ............................................. 39,363,060 total for the same month of 1935. Residential contracts, however, showed an increase of 70 per cent over last November. Oelober - 13.1% 17.6% -$ 69,280 35.0% 5 +$124.000 6.2% + ------------------------------------------------ . Although a general decline in business and industrial activIty, which is usual at this season, occurred in November, sub~tanti.al gains in merchandi se distribu~ion and in some .inUstnes were recorded as compared WIth the correspondmg Ul0Ulh of 1935. Wholesale distribution was 23 pel' cent !arger than a year ago thereby maintaining the average Increase for the season. The adjusted index of department tore sales, while receding from 104.7 per cent of the 1923· 925 average in October to 97.2 per cent in November, ~howed a noticeable increase over the November, 1935, 19ure of 83.8 per cent. Bank debits during the month were ~2 per cent higher than a year earlier and the gain for the lt~st half of December rose to 19 per cent. Commercial fhllures were more numerous and liabilities were greater \ an in the preceding month, as is usual at this season, but lIe comparisons with last year were very favorable. i ~lthough the valuation of building permits issued at prInCipal cities was sharply lower than in October, the volume was 27 per cent larger Lhan in the same month last Year. The value of contracts aWaI·ded in this district, as ~'eported by the F. W. Dodge Corporation, declined further In November and was one·fourlh smaller than the large Reporting member bank loans, after reaching a seasonal peak toward the end of November, declined during the subsequent two weeks and the total of $228,876,000 on December 9 was moderately lower than four weeks earlier. These banks made a further addition of $4.,4.05,000 to their investment portfolios between November 11 and December 9, representing largely the purchases of direct and fully guaranteed obligations of the United States Government. The average gross deposits of member banks rose to $1,298,010,. 000 in November, which was $35,950,000 larger than the October average. The reserves of member banks were main· tained at an average of 60 per cent above requirements in November. There was a further substantial increase in reo serves during the first half of December, but the gain was more than .cancelled at the middle of the month due Lo the cash payments on subscriptions to the December 15 Treasury issues of United States Government securities. Federal Re· serve notes in actual circulation were moderately higher on December 15 than a month earlier. The position of the district's agricultural and livestock industries remained generally satisfactory although some unfavorable circumstances developed during the month. There is a growing need for additional moisture in the 1936 drouth area to provide a good subsoil season and to stimulate the growth of small grains. Wet soil in other areas delayed farm work in November. Early freezes pre· vented maturity of range grass in some sections. Livestock, however, are going into the winter in good shape. BUSINESS r 1Pholesale Wholesale distribution in this district reo than those in November last year, which was practically the Trade flected an end-of·season decline during same percentage gain registered for the five months E'nded tl November. It should be noted, however, November 30. Increases for the period in individual lines lat the volume of business was maintained at a level sub· ranged from 10.6 per cent for groceries to 86.7 per cent for bt.antially higher than that obtaining a year ago. The com· farm implements. The heavier volume of wholesale trade is t ~ned ~ales of reporting firms in the five lines of wholesale a reBection of the expansion in consumer demand resulting lade Investigated by this bank were 22.6 per cent larger partly from the larger cash agricultural income, the spread This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW in employment, and the increase in payrolls. Inventories in most lines at the end of November were considerably above those a year ago. The sales of dry goods by reporting wholesale firms declined 36.4. per cent between October and November. While this recession was somewhat larger than seasonal, purchases during the late summer and fall were very heavy. November sales were 3 per cent above those in the same month last year, and the gain for the period from July 1 to November 30 averaged 23.4 per cent. Stocks held by reporting firms on November 30 were 3.8 per cent smaller than a month earlier, but they exceeded those a year ago by 23.4, per cent. Reports indicate that the cotton goods market is generally strong and that mill deliveries on some items are slow. The distribution of farm implements at wholesale during November, although 5.4, pel' cent smaller than in October, was 14,0.9 pel' cent above that in the same month of 1935. Sales have shown a marked expansion since mid·summer and the margin of increase over a year ago has widened as the season advanced. During the past few years in which farm income has been rising, farmers have been replacing obsolete and worn out equipment at an accelerated rate, but buying has been particularly heavy in recent months. The wholesale hardware trade, after showing an upward trend during the preceding nine months, declined 17.1 per cent between October and November. The month's sales, however, were 22.5 per cent larger than in the same month last year. Business throughout the year has been stimulated by the marked expansion in building activity. CONDITION OF WHOLESALE TRADE DURING NOVEMBER, 1986 Percentage of increase or decrease InRado of collectiont during Not. Stock. to 2CCOuntf Nov. 30, 1936 and notet compared with compared with sa me period Nov. 30, Oct. 31, outstandinc Net Sales Net Sales July 1 to date Nov., 1936 compared with Oct. 1936 Nov. las tyear 1935 Groceries ..................+ 8.7 Dry goods................ 3.0 Farm Implements.. +140.9 Hal'dware................ + 22.5 Drugs..................._.. 21.5 -12.0 -36 .4 - 5.4 -17.1 -18 .8 + + +10.6 +23.4 +86.7 +29.7 +20.0 19l5 1936 +11.9 +23.4 +13 .6 +.2 +16.0 on Oct. II 84.2 38.1 14.8 51.4 60.6 - 2.2 - 3.8 +18.6 .7 + .7 Retail Trade The November sales of reporting wholesale grocery firms reflected a seasonal recession of 12.0 per cent, but they remained appreciably above those a year ago. Although inventories showed a seasonal decline of 2.2 per cent during November, they had been increased by more than the usual amount during the preceding four months, and the total on November 30 was 11.9 pel' cent higher than a year earlier. Adverse weather conditions prevailing during much of the month and a falling off in tourist trade were factors partially accounting for the larger than seasonal decline in depart· ment store sales during November. The recession in the cities of Dallas and Fort Worth was greater than the 17.6 per cent average for the district. Total sales for the month were 12.0 per cent above those in November, 1935, when there was one additional business day. The adjusted index of department store sales compiled by this bank declined from 104,.7 pel' cent of the 1923-1925 average in October to 97.2 per cent in November, and the latter figure compares with 83.8 per cent in the same month of the previous year. Late reports indicate that Christmas shopping, stimulated by payments of bonuses and dividends, is gaining momentum as the holiday season approaches and will be in unusually large volume this December. The wholesale drug business in November, while 13.8 pel' cent smaller than in October, exceeded that in the same month last year by 21.5 per cent. Sales during the five months ended November 30 were 20.0 pel' cent larger than those in the corresponding period of 1935. Stocks on November 30 were about the same as a month earlier, and were 16.0 per cent higher than on the same date in 1935. Among the individual departments, increases over Novem' bel' a year ago occurred in all departments with the exception of piece goods and accessories. Departments registering gains of 20 per cent or better were as follows: Blankets and comfortables; silverware; stationery; millinery; women'S and misses' coats and suits; house furnishings; china and glassware; and domestic floor coverings. --------------------------------------------------------------------------------------------------------BUSINESS OF DEPARTMENT STORES Total sales (percentage) : November, 1986, compared with November. 1985 ...................................................................... .. November. 1986. compared with October. 1986............................................................................ . January 1 to November SO. 1936, compm'ed with same period last year ................... _........... Credit sales (percentage) : November. 1986, compared with November. 1985 ....................................................................... . November, 1936. compared with October. 1936....................................... _.................................. .. January 1 to November 30. 1986. compared with same period last year ................................ Stocks on ha nd at end of month (percentage) : ~~~::~:~: ~~~~: ~~~~::~ ::~~ ~~;"be~,e~9~:.~~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Stock turnover (rate) : Rate of stock turnover in November. 1985 .................................................................................... . Rate of stock t urnover in November. 1936 ....................... _........................................................... . Rate of stock turnover January 1, to November 80. 1985........................................................ .. Rate of stock turnover January 1, to November 80. 1936.......................................................... Ratio of Novembet' collections to open accounts receivable and outstanding Nov. 1, 1936 .. .. R atio of Novemb er collections to installment accounts receivable and outstanding November 1. 1986............................... _.............. _.·· ............·.·....._............................. _.............. _........ Indexes of department store sales: Unadjusted-October, 1936................... _......................................................................................... .. Unadjusted-November, 1986 ............................................................................................................ Adjusted-October, 1936................................................................................................................... .. Adjusted-November. 1986............... _.................................. _.................._....................................... Indexes of department store stocks: Unadjusted-October. 1986 ................... _.......................................................... _............................... Unadjusted-November. 1986............................... _.............. _.......... _............................................. .. ~~~~:~~=g~t;>:~J;e;~~~·86::::·._.:::::~.~.::::::::::·.:·.·.::~.::. :::~._. .::::::.. .~::~.:.._~:::. :::.:. :::::''_.:'.:::::::::: ' _'_'_'_.:'.:'.:'.:' _'_.:'.::'.~ Others Totll oll ' t. + ILl - 18.6 + 19.6 Houston + 1l.4 5.5 + 14.4 Son Anto nio + 16.8 - 25.1 20.9 - + 6.6 - 12.5 + 19,3 + 11 .9 - 15.6 + 16.4 + 12.0 _ 17.6 + 18.6 - 26.3 + 20.1 + 16.8 - 16 .5 + 18.8 -+ + 16.7 6.9 17.4 + 7.8 - 14.1 + 19.4 + 9.7 - 18.3 + 13.8 + 12.9 _ 19.1 + 18.6 + 12.6 8.4 + 10.9 + a.8 + + O.lla. + + 13.7 + + 5.7 6.4 Fort Worth + 2.6 .4 =I: 4.2 6.6 + 6.6 6.1 .80 .29 8.12 8.42 44.l .23 .24 2. 37 2.63 40.7 .27 .28 2.81 8.18 42.8 14.8 17. 6 14.6 .29 .82 8.28 8.68 43.0 .24 .26 2.89 2.77 38. 6 16.2 11.0 142.8 121.4 117.0 102.9 127.1 116.9 111.6 07.4 106.9 120.6 102.8 103.1 06.2 97.8 86.9 85. 0 120. 4 112.7 104. 7 97.2 66 .5 71.1 59.4 65.2 75. 7 76.0 65.8 67.8 46.8 50.1 89.0 48.6 66.4 64.1 49 .9 67. 7 68.1 72.1 60.8 64.4 .26 .28 2.62 2.96 44.1 --- MONTHLY BUSINESS REVIEW The dollar value of department store stocks r ose 5.1 per cent in November, and at the close of the month wen 6.5 per cent higher than a year ago. Compared with last year, the increase in average end-of-month stocks has been much smaller than the gain in sales causing a higher rate of stock turnover. Thus far this year reporting stores have turned their stocks 3.13 times as compared with 2.81 times in the same period of 1935. Collections on regular accounts showed practically no change from October to November, but there was a moderate decline in payments on installment contracts. The ratio of payments on regular accounts was 4,2.3 per cent in November 8 as against 41.6 per cent last year. On installment accounts the ratio was l4..6 per cent for the current month, and 15.3 per cent in the same month of 1935. The number and liabilities of commercial failures in the Eleventh Federal Reser ve District increased during November. Dun & Bradstreet, Incorporated, reported that there were 15 failures with liabilities aggregating $204,000, which compares with 10 defaults in October with an indebtedness of $80,000, and 30 insolvencies in November, 1935, with aggregate liabilities of $314,,000. Commercial Failures AGRICULTURE Crop Con- Farm work in many sections of the Eleventh District was retarded by wet soil during November, but the more favorable weather prevailing recently has enabled farmers to proceed with field operations. The harvesting of crops and the seeding of small grains are practically completed, and winter plowing can be pushed forward rapidly in the event weather conditions remain favorable. While the supply of moisture is generally ample over the major portion of the district, there is a shortage of subsoil moisture In a considerable portion of the 1936 drouth area, and a defiCiency of surface moisture in some portions. Early sown grains are up to a good stand and making fair to good growth although rain is needed in the heavy producing areas of northwest Texas to insure plant development and to provide a deep subsoil season. ditions insect activity were responsible for the lower yields in the Southern Prairies and Coastal Plains districts. Ginnings in Texas prior to December 1 totaled 2,713,000 running bales, which represents approximately 95.2 per cent of the present estimate. This figure compares with 84.8 per cent in 1935, and 94.0 per cent in 1934.. Total production of cotton in Louisiana was estimated at 763,000 bales, or the largest crop produced since 1931. The indicated per acre yield of 265 pounds exceeds that for any year since 1906. The December 1 estimate of 290,000 bales for the Oklahoma crop was only about half the poor harvest of 1935 and less than one-third of the 1928-1932 average production. The cotton crop in Arizona and New Mexico exceeded earlier expectations and the final estimates are considerably larger than last year's production. f b The Department of Agriculture in its report as of Decemer 1 estimated production of cotton in Texas at 2,94.5,000 bales, which compares with an estimate of 3,005,000 bales on November 1. The Department stated that the reduction of 60,000 bales in prospective production during the month ~esulted from the damage to late fruit caused by frost and reezes in the High Plains and adjacent areas. While the latest estimate is only 11,000 bales below last year's pro~uc.tion, the acreage harvested was 11 per cent larger. The IndIcated per acre yield on December 1 was 119 pounds, as Compared with 133 pounds in 1935, and 114 pounds in the drouth year of 1934,. There was considerable variation as Compared with a year ago in the amount of cotton produced in the several districts of the State. An increase in &ll'oduction occurred in the Northwest High Plains, North acklands, Trans-Pecos, and South Texas districts due to ~h larger acreage and more favorable growing conditions. e .Summer drouth caused reduced yields in the Northwest ~odlhng Plains, NOl:th-~entral. Plains, ~nd in portions of the wards Plateau dlstnct, whIle the mId-summer floods and TEXAS-PRODUCTION OF COTTON BY DISTRICTS (In thousands of 600-pound G. W. bales) Forecast District ~. ~. IIigh Plains ................................. • yy ROll'mg PI' l-lorth Cen a!ns ............................. l~t~'"~~;~;~~;~;\ Dec. 1, 1936 894 886 70 1.022 455 68 72 280 81 108 2,945 SOURCE: Deparbnent of Agriculture Five-year Nov . t, Production average 1936 416 410 72 1.036 467 67 72 282 78 107 8.005 1928-32 428 769 119 1.847 770 60 108 648 204 152 4,580 1935 838 608 117 743 468 46 88 864 118 91 2.966 According to the Department.of Agriculture, winter vegetable crops in south Texas showed an improvement during November. The condition of winter crops is reported to be favorable in all sections except the Coastal Bend area where the lack of surface moisture has delayed planting and development of crops. Most of the fall crops are still being harvested and some of the early winter crops are beginning to move. Citrus fruits are moving in large volume. The condition of ranges and livestock in most sections of the Eleventh District remained generally favorable. Ranges carry a fair to good supply of matured grass, except in those areas affected by the 1936 drouth where the grass did not make sufficient growth to insure ample range feed. Likewise, supplies of dry feed in these areas are short, and additional moisture is needed to stimulate growth of grain for winter pasturage. This is particularly true of northwest Texas and southwestern New Mexico. In most other sections of Texas, there is an ample to surplus supply of range grass and dry feed to carry livestock through the winter in good shape. livestock are in very good condition in practically all sections, and are entering the winter under favorable circumstances. The Department of Agriculture reported that the shipments of sheep and lambs from Texas have been very small in proportion to the large lamb crop. There was considerable contracting for 1937 wool during November, but commercial reports indicate that contracting has slowed down recently. Livestock The Department of Agriculture reported that the condition of cattle and sheep and goat ranges in Texas declined 4. points during November, which was greater than the average decline, but the condition on December 1 was MONTHLY BUSINESS REVIEW 4 considerably above the ten·year average. The condition of cattle was rated at 84 per cent of normal on December 1, which was 2 points lower than a month earlier or a year ago. Sheep and goats reflected a decline of 1 point during the month, and the condition on December 1 was 4. and 3 points, respectively, lower than a year ago. As compared with the ten·year average, the condition of cattle was 2 points higher and that of sheep and goats 3 points. The condition of ranges in New Mexico and Arizona declined during November, and on December 1 it was lower than on the same date a year ago. Livestock generally are in good condition. The November receipts of cattle at the Fort Worth market showed a further seasonal increase as compared with the previous month, but they continued to fall short of arrivals a year ago. The supply of calves and hogs was larger than in either the previous month or the same month last year. The receipts of sheep were in small volume, being con· siderably below those in either October this year or No· vember a year ago. Movements and Prices The cattle market showed considerable variation during the past thirty days, but there was usually a good demand at firm to higher prices for quality offerings. There was a broad outlet for calves and the trend of the market waS upward. After holding generally steady during the last half of November, hog prices advanced in the first week of December, but the reaction during the subsequent ~ek cancelled part of the gain. Reflecting the light supply, sheep and lamb prices were firm to moderately higher. FORT WORTH LIVESTOCK RECEIPTS (Number) Cattle........................ Calves....................... Hogs......................... Sbeep........................ Nov. Nov . 1936 67.843 53,202 20,572 20,156 1935 73.824 45,885 15,473 30,506 Chonge over year - 5.981 7,817 =1= 5,099 -10,350 Ocl. 1936 61.652 45,212 19,439 26,773 Chong. Of" month + + + - 6,191 7,990 1,133 6,617 COMPARATIVE TOP LIVESTOCK PRICES (Donars per hundredweight) Nov. 1936 Beef steers. .................................................................... $ 8.7 5 Stocker steers................................................................ 7.00 Heifers and yearlings.................................................. 10.00 Butcher cows................................................................. 5.00 Oalves.............................................................................. 6.25 Hogs................................................................................. 9.45 Sheep............................................................................... 6.00 Lambs............................................................................. 8.25 Nov . 1935 $ 9.00 7.10 9.25 5.50 7.00 9.66 6.50 9.75 Oct. 1936 $ 8.26 7.0 0 10.00 6.0 0 6.86 10.a6 6.26 8.60 FINANCE The investments and deposits of report· ing member banks in leading cities reo flected a further increase between November 11 and December 9, but there was a small decline in loans. The total of direct and fully guaranteed obligations of the United States Government held by these banks rose to $230,487,000, which was $3,752,000 greater than on November 11, and $29,307,000 larger than on December 11, 1935. Investments in other securities rose $653,000 during the four· week period and were $7,002,000 greater than a year earlier. Between No· vember 11 and December 9, loans on securities reflected an exaansion of $1,4.67,000, which was more than offset by a decline of $2,060,000 in "all other" loans (agricultural, commercial, and industrial loans), representing a net reo cession in total loans of $593,000 for the four· week period. Total loans on December 9 were $35,207,000 larger than a year earlier. During the four· week period there was an increase of $9,729,000 in demand deposits·adjusted, $698,000 in time deposits, and $2,936,000 in inter· bank de· posits, which was partially offset by a decline of $3,661,000 in United States Government deposits. On December 9, the Condition of Member Banks in Leading Cities CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES (In thousands of donal'S) Dec. 9, 1936 United States securities (owned) ...................... $187 ,1 56 Securities funy guaranteed by United 48,881 States Government (owned) ........................... An other stocks, bonds, and securities 51,959 (owned) ............................................................... 45,890 Loans on securities............................................... All other loans ....................................................... 182,986 Total loans............................................................. . 228,876 Demand deposlts--adjusted . ............................... 882,898 Time deposits .......................................................... 121,998 84,125 United States Government deposits................. . Interbank deposits................................................. 222,728 Balances with domestic banks ............................ 187,154 Reserves wibh Federal Reserve Bank................ 107,276 Bills payable and rediscounts with Federal None Reserve Bank...................................................... 1935 $149,821 Nov. 11, 1936 $184,674 51,869 42,061 44,957 41,888 151,781 193,669 328,950 121,574 14,195 186,990 179,910 74,672 51,806 44,423 185,046 229,469 872,669 121,295 37,786 219,787 185,095 103,931 None None Dec. 11, 'Demand deposits other than interbank and United States Government, less cash items reported as on hand or in process of c.o nection. total of these deposits was $109,530,000 greater than on lhe corresponding date in 1935. Between November 11 and December 9, these banks increased their balances with other banks $2,059,000 and their reserves with the Federal Reserve Bank $3,345,000. Operations of the Federal Re· serve Bank Federal Reserve Bank loans to member banks declined to the nominal amount of $6,000 on December 15, which compares with $39,000 on November 15, and $174" 000 on December 15, 1935. Outstanding industrial advances reflected a further decline of $50,000 between November 15 and December 15, and the total of $1,360,000 on the latter date was $4.52,000 smaller than on the corresponding date in 1935. Holdings of United States Government securities aggregated $100,896,000 on December 15, as compared with $100,637,000 a month earlier, and $78,975,000 a year ago. The reserve deposits of member banks averaged $162, 182,000 in November, as compared with $155,760,000 in October. Average reserves carried during November were 60.1 per cent in excess of requirements as compared with 55.9 per cent in the preceding month. Reserves rose to a new high level at $170,74.0,000 on December 8, but they had declined to $166,852,000 on December 15. Federal reserve notes in actual circulation amounted to $92,663,00 0 on December 15, as compared with $92,159,000 a month earlier and $73,694,000 a year ago. CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) Total cash reserves. ............................................... Discounts for member banks ............................... Other bills discounted ........................................... Industrial advances ............................................... Commitments to make industrial advances ..... Bills bought in the open market........................ United States Government securities owned .. All other investments........................................... Total earning 6ssets. ............................................. Member bank reserve deposits ............................ Federal Reserve notes in actual circulation.... Dec. IS, 1936 $175,854 6 Dec. IS, 1935 $132,951 174 1,360 492 87 100,896 14 102,363 166,852 92,668 1,812 696 121 78,976 7 81,089 126.746 78,694 None None NoV. IS, 1936 $178,7~~ None 1410 '496 87 100,687 14 102,187 162,897 92,169 MONTHLY BUSINESS REVIEW Deposits of Member BanI,s There is presented a table showing the demand deposits-adjusted and time deposits of member banks in the Eleventh Federal Reserve District as of each "call" date from June 30, 1933, to June 30, 1936, inclusive, segregated according to reserve city and country banks_ DEPOSITS OF MEMBER BANKS (In thousands of dollars) Combined Total Reserve City Banks Demand C Debits to Individual Accounts The volume of debits to individual accounts at banks in reporting cities of the Eleventh Federal Reserve District reflected a seasonal decline between October and November. The recession, which was general over the district, averaged 13.1 per cent, but the November aggregate exceeded that of the same month last year by 12.4 per cent. Country Banks (2) Demand DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) Demand deposits Time deposits Time deposits TIme adjusted (I) Deposits adjusted (I) Deposits adjusted (I) Depo.lt. all dates: ~une 80. 1933 .......... $379.662 $189.863 $176.729 $114.301 $202.933 $75.562 189.949 181.897 108.788 224.077 81.216 Dct. 25. 1933 ........... 40 5.974 Mec . 80. 1938 ........... 444. 205 190.000 194.914 107.497 249.291 82.508 Jar. 6. 1934 ......... 489 .624 193.799 216.647 108.256 272.877 86.548 Oune 30.1984.. ........ 495.620 197. 280 282.911 111.854 262.609 86.426 Dct, 17. 1984 ......... 642.021 196. 992 246.486 109.410 296.686 86.682 Mec . 81. 1934 ........ .. 651.276 196.066 24 2.422 112.117 308.854 88.949 Jar. 4. 1985 ... .... .... 572. 576 195.066 259.082 111.861 818.644 83.195 Nune 29. 1986 ......... 683 .644 196.210 276.566 113.421 807.088 81.789 D ov. 1. 1936 ......... 628.988 194.862 294.466 111.873 384.682 82.989 Mec . 81. 1986........... 642.167 198.49 6 292.629 111.861 349.638 86.644 Jar. 4. 1936 ....... 662.216 196.626 300.624 109.286 861.692 87.841 une 80. 1986.......... 697.486 200.661 327.868 110.966 370.183 89.696 (1) Demand deposits other than interbank and United States Government. less cash itemB in process of collection and. prior to December 31. 1986. less cash items reported on hand but not in process of collection. (2) Outlying banks in reserve cities which have been authorized to carry country bank r eserves are included with country banks. Acceptance Market Outstanding acceptances executed by accepting banks in this district increased further between October 31 and November 30, lhe total on the lauer date being $2,236,634. as compared with $2,136,813 a month earlier, and $2,373,539 a year ago. Acceptances hased on the domestic shipment and storage of goods amounted to $1,850,025, while those exeCuted against import and export transactions totaled $386,609. November 30. 1936 Number Beaumont I!I!;=I;II!I! I - ~ TotaL .............................. of re- Number of porting banks savings depositors 8.828 80.683 13.580 36.584 17.075 68.197 6.369 19.986 28.884 9.558 6.467 62.8 66 842.801 3 8 2 3 4 10 2 5 3 8 3 68 ill Nov. Nov. Pctg. change 1936 1935 over yent savIngs deposits 8.640.115 26.142.664 7.809.680 12.401.051 10.881.464 28.179.194 2.288.867 16.020.432 11.266.640 5.427.289 8.467.813 26.614.088 $153.467.627 oct. Pctg. change 1936 over month Abilene............................ $ 8.693 -16.9 $ 8.828 $ 10.841 - 2.6 22.684 Austin ............................. 20.184 28.906 -21.7 +12.1 20.486 20.478 .03 22.640 Beaumont....................... - 9.5 + Corsicana ........................ 3.444 2.860 +20.8 4.554 -24.4 Dallas.............................. 224.017 197.966 18 2 266.866 -16.9 . 27.214 28.766 14.6 EI Paso ............................ 82.064 -16.1 Fort Worth ................... _ 12 0 79.710 71.178 88.412 - 4.4 81,081 26.064 24.0 Galveston ........................ 84.874 -10.9 . Hou.ton ......................... _ 189.616 160.614 18.0 214.824 -11.8 Port Arthur ................... 7.611 6.891 +19.1 8.484 - 9.8 RoswelL........................ 8.686 8.198 +18.7 8.981 - 7.6 San Antonio................... 59.828 62.788 67.521 -12.1 - 5.4 Shreveport...................... 40.159 81.291 28 8 47.894 -16.2 • Texarkana· .................... 7.646 6.820 19.4 -16.7 9.066 Tucson ............................. 9.918 9.406 10.651 - 6.9 + 6.4 Tyler............................... 12.884 10.657 +20.4 -16.6 15.195 Waco.............................._ 14.884 14.188 16.776 -14.6 + 1.0 12.807 18.567 18.441 Wiohlta Falls................. - 9.2 - 8.4 TotaL .......... $774.862 +12.4 $890.878 =l8.f ~ ·Includes the fiKures ot two banks In Texarkana. Arkansas. located In the Eighth District. t i :t Savings Deposits The amount of saving deposits at 114 banks in this district which operate savings departments was $153,467,627 on November 30, as compared with $152,712,907 on October 31, and $150,193,297 on November 30, 1935. The number of savings depositors increased slightly during November. SAVINGS DEPOSITS November 30, 1935 Amount of $ 5 Number of s.vlngs depositors 9.224 76.808 11.967 86.100 16.945 67.601 6.640 17.796 22.086 9.846 6.196 60.899 829.406 October 31,1936 Amount of Percentage change deposits &3vlng. deposits ..vlng. 8.772.829 24.912.481 6.062.619 11.474.019 10.606.418 81.286.976 2.228.465 14.894.619 10.726.842 6.296.748 8.288.880 24.704.562 $160.198.297 $ over yeu In - 8.5 + 4.9 20 6 • 8.1 + 2.1 - 9.8 + 2.9 + 7.6 + 4.9 -18.8 + 6.3 + 7.8 t '="2.2 Number of saving. depositors 9.021 80.660 18.859 86.420 17.092 68.217 5.858 19.885 28.788 9.554 6.487 62.188 841.959 Amount of Percentage change over month in savings deposi tl .02 $ 3.640.980 .4 26.082.869 + 7.181.608 .3 12.866.921 .1 10.846.481 .03 28.189.168 2.818.479 - 1.3 16.909.666 .7 + 11.177.218 .7 .4 5.406.516 .8 8.428.618 + 26.215.608 + 1.1 $162.712.907 ~6 savIngs deposits - t1.8 - t ------------------------------------------------------------------------------------------------------------------DISCOUNT RATES CHARGED BY MEMBER BANKS DURING DECEMBER, 1986 Prevailing Rates EIP.,o Dallas Fort Worth llate d~arged customers on prime commercial paper such as Is now eligible tor 6-6 Rat re hscount under the Federal Reserve Act.. .................................................................... 8-8 llh-6 nate c arged on loans to other banks secured by bills receivable .............................. .. 4-6 6 e on loans secured by prime stock exchange or other current collateral '(not l ncludlng loans placed In other markets through correspondent banks) : Demand ............................................................................................................................ .. 4-8 4 6-8 6-8 4-8 Rate b Time ................................................................................................................................... . 6-8 llate c arged On commodity paper secured by warehouse receipts. ete ......................... 2-8 6-8 llh-8 on cattle loans ............................................................................................... _ ...................... 4-8 6-8 6-8 Hou.ton San Antonio Waco 4-7 4 1h-6 5-7 6 2-6 6 8-7 3-7 2-7 7-10 6 6-7 5-8 7-8 6 6 5-8 8 ---------------------------------------------------------------------------------------------------INDUSTRY Cottonseed PrOducts The and ucts during November, but receipts and crushings of cottonseed the production of cottonseed prodat United States mills declined were at a higher level than in the corresponding month last year. The operations of Texas mills, while smaller than in the previous month, were in about the same volume as in November last year. For the four months of the current season, the production of all MONTHLY BUSINESS REVIEW 6 classes of cottonseed products at both Texas and United States mills exceeded by a substantial margin the output for the same period of the previous season. Stocks of products on hand at the mills showed a further increase between October 31 and November 30, but holdings on the latter date were smaller than a year earlier. STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texas United States August 1 to November 30 This senson Last season August 1 to November 30 This season Last season Cottonseed received at 752,723 691,487 mills (tons) ....................... 546,246 476,578 Cottonseed crushed (tons). Cottonseed on hand Nov. 80 (tons).................. 216, 858 237,276 Crude 011 produced (lbs.) ... 152,766,736 134,693,769 Cake and meal produced 219,798 250,190 (tons) ................................. 146,359 128,226 Hulls produced (tons) ._..... Linters produced 91,647 116,686 (running bales) ............... Stocks on hand November 80 : Crude oil (pounds) .............. 20,228,320 22 ,570,260 84,520 81, 347 Cake and meal (tons) ......... 63,302 79,626 Hulls (tons) ........................_ 62,663 66,247 Linters (running bales) .... Source: Bureau of Census. 8,481,082 2,124,058 2,754,868 1,956,284 1,878,956 681,753,036 887,668 591,074,013 962,933 646,186 883,43 5 608,216 510,812 432,599 62,105,004 209,660 148,900 164,917 68,878,444 316,890 164,775 172,510 The November consumption of cotton by domestic mills, although smaller than in October, continued at a relatively high level. The total for the month amounted to 626,695 bales as compared with 64.6,4.99 bales in October, and 512,312 bales in November, 1935. The previous high figure for November was in 1927 when consumption aggregated 626,74,2 bales. During the first four months of the current season, domestic mills consumed 2,4,77,210 bales, which was 553,086 bales, or 28.7 per cent, larger than in the corresponding period of the previous season. Mill purchases of raw cotton continued in heavy volume. Stocks of cotton on hand at consuming establishments rose to 1,792,250 bales on November 30, which was 27.8 per cent greater than a month earlier, and larger than at any month·end in several years. COTTON CONSUMED AND ON HAND (Bales) Nov. Nov. 1936 19l5 430,786 512,312 August 1 to November 30 This season L.st se.son 2,077, 652 1,618,849 1,576,907 8,367,837 1,178,695 8,519 ,799 2,477,210 1,924,124 1,792,260 8,418,408 1,348,830 8,629,078 The past month witnessed a sharp decline in the movements of cotton to the ports of Houston and Galveston. The combined receipts at these ports during November were 30.2 per cent smaller than in October, and 10.0 per cent lower than a year ago. The decline is accounted for partly by the heavy move· ment earlier in the season following the rapid ginning and marketing of the Texas crop. Total receipts at the two ports from August 1 to November 30 aggregated 2,309,365 bales, which was 7.0 per cent greater than in the like period of the previous season. Exports of cotton from both ports reRected a non·seasonal decline from October to November and were smaller than a year ago. Stocks of cotton continued to accumulate. Cotton Movements COTTON MOVEMEN'l'S THROUGH THE PORT OF GALVESTON (Bales) Receipts............................... .. Exports ................................. . Stocks, November 30 .......... Nov. Nov. 1936 19l5 383,870 225,497 August 1 to November 30 This season Last senso n 321,147 259,262 1,324,072 699,178 987,089 1,064,885 450,069 829,419 COTTON-GALVESTON STOCK STATEMENT (Bales) Nov. 30, Nov. 30, 1936 Textile Milling Cotton·growlng states: Cotton consumed.............................. 528,613 Cobton on hand November 30 inConsuming establishments......... Public storage and compresses.. United States: Cotton consumed............................. 626,605 Cotton on hand November 30 inConsuming establishments........ Public storage and compresses.. Source: Bureau of Census. Exports from all United States ports were likewise smaller than in either the previous month or the corresponding month last year. November exports amounted to 689,815 bales, which represents a decline of 19.9 per cent as com· pared with October and 39.2 per cent as compared with November, 1935. Shipments during the month to all leading importing countries were smaller than a year ago. ReRecting the sharp decline in November, exports thus far this season dropped 10.6 per cent below those for the corresponding period of the previous season. For Great Britain....................................................................... 18,600 For France................................................................................... 26,600 For other foreign ports............................................................. 64,600 For coastwise ports.................................................................... 4,000 In compresses and depots......................................................... 879,889 TotaL ....._..................................................................... 987,089 1935 11,000 20,000 75,500 2,200 720,719 829,419 COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) Nov. Nov. 1936 Receipts .......................................... 278,966 Exports ........................................... 180,829 Stocks, November 80..................... .. ......... . 19l5 416,046 317,661 August 1 to November 30 This senson Last season 986.298 686 ,276 606,872 1,102,686 672,149 732,464 SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTS (Bales) Augus t 1 to November ]0 ThIs season Last season Receipts.................................................................................. .. 4,548,880 Exports: United Kingdom ................................................................. 466,548 France.. __............................................................................... 368,871 Itnly....................................................................................... 111,592 Germany .............................................................................. . 286,922 Otber Europe....................................... _.............................. 278,670 J apan .................................................................................. .. 662,772 All other countries ............................................................. 127,667 Total exports ............................................................... _........... 2,802,942 Stocks held at all United States ports Nov. 30 ................ 8,019,331 4,646,869 687,468 309,809 162,603 811,126 412,230 684,424 107,g! 2,674,786 2,984 ,547 SPOT COTTON PRICES Middling Basis (Cents per pound) November, 19 36 High Low New york ................................................................ New Orleans ..........................................._.............. Dailas...................................................................... . Houston ................................................................... Galvcston ................................................................. 12.43 12.36 11.88 12.21 12,13 12.08 12.06 11.68 11.86 11.82 Dec. IS, 1936 12.92 12.72 12.87 12.60 12.52 ----------------------------------------------------Petroleum The November output of crude oil in the Eleventh Federal Reserve District reRected a decline from the previous month due both to the shorter month and a decrease in the rate of production. The total for the month amounted to 39,363,050 barrels as compared with 4.1,516,050 barrels in October, and M,. 4.14~500 barrels in November, 1935. The decrease in the production rate is evidenced by a recession of 27,125 barrels in daily average output between October and November. The rate of drilling activity reRected no material change from the previous period. In the five· week period ended November 28, there were 1,393 wells completed, which MONTHLY BUSINESS REVIEW ORUDE OIL PRICES (Price per barrel) included 1,057 oil producers yielding an initial flow of 1,514,,131 barrels. The daily average production at Texas fields amounted to 1,151,233 barrels in November, which was 30,567 barrels ~ower than in the previous month. The rate of output was Increased in norLh Texas and in east Texas, but it was more than offset by the decrease recorded at other fields. The daily average production in north Louisiana was up slightly as compared with October, but it was lower than in any olher month since June. In New Mexico the daily average output rose to a new high level. OIL PRODUCTION (Barrels) Increase or dec rease over Octob er, 1936 Total Dally Avg. November, 19 36 Total Daily Avg. ~~,=:;:i:t:- 3,816,400 5,540,450 15,409,650 5,025 ,300 4,745,200 N:t;i T!'xas ....................... 84,537 ,000 2,502,950 North ~~~~~i~;:;~:::::::::::::::::: 2,323 ,100 Total District .. ................. 89, 368 ,050 127,213 184, 682 518,6 55 167,51 0 158 ,17 3 1,151,288 88,482 77 ,487 1,812,102 + 170,400 814,200 407,100 • + 9,600 -20,307 + 8,437 * o -2, 098,800 2,700 61,500 -2, 158,000 ~orth T exas...................... 310 i~~1:i~~~y~:::::::::::::::::::: :· i~~ 185 m J 109 Although the production and shipments of cement at Texas mills declined between October and November, they were maintained at a level sub· stantially higher than in the same month last year. Produc· tion during the month amounted to 444,,000 barrels, which represents a recession of 18.2 per cent from the October output, but an increase of 35.8 per cent over that in November, 1935. Shipments reflected a decline of only 7.3 per cent as compared with the previous month and exceeded those a year ago by 57.2 per cent. Reflecting the excess of shipments over production, mill stocks declined 6.3 per cent between October 31 and November 30. P ercentage J.nu.ry 1 Ih rough Percentage Nov. 30, change 1936 over year 5,889 5.386 +58.4 +68 .2 Building Following the marked increase in October, the valuation of building permits issued at fourteen principal cities in this district reflected a greater than seasonal decline in November. This decrease was participated in by all but two of the reporting cities. The total for the month amounted to $3,541,273, and while this figure was 35.0 per cent lower than the October volume, it was 26.8 per cent above that for November, 1935, and was larger than the total for any corresponding month since 1930. 40,313 i~ $1.12 1.08 1.08 Cement chllnge from Initial Production Fallurea Dec. 13, 19l5 Texas Coastal (84 gravity and above) .................................. $1. 22 North Texas (40 gravity and above) ..................................... 1.08 North Louisiana (40 gravity and above) ............................. 1.10 (Oil statistics compiled by "The Oil Weekly," Houston, Texas ) Nov . Nov. OCI. 1936 19l5 1936 Producbion at T exas mills ........ 444 +35.8 - 18.2 Shipme n ts from Texas mills .... 492 +57 .2 - 7. 8 Stocks at end of month at Texas mills .............................. 696 +11.4 - 6.8 Source: United States Bureau of Mines, NOVEMBER DRILLING RESULTS Ga. Well. 16 Dec. II, 19 36 PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND OEMENT (In thousands of barrel s) -80,667 + 2,605 + 887 -27,126 C ' The coastal sec tion of Bouth Texas was fOl'mel'ly included with T exas Oastal. Combined production for t he two fields during November wns Il'~47.900 barrels smaller than in October, and daily a verage production dec Ined 23,297 barrels. Completion. Producers 7 l,m:m exas CoastaL................ 110 90 2 18 20,164 N Total T exas .................. 1,302 ----gao ii8 284 1,410,412 NOW Mexico...................... 49 47 1 1 62.224 orth Louisiana.............. 42 80 5 7 41,495 ·No to .'0 v. tala, d istrict ...... . 1,393 1.057 44 202 1.514,131 ctober tota ls, distl'ict 1,048 803 44 201 1,122.548 ° November figul'es repr ese nt five weeks e nded November 28. 1936. ' · October figures represent foul' weeks ended October 24, 1986. BIDLDING PERMITS AlllarlIIo.... .................... November, 19 36 No. Valu.tion 24 $ 45,777 g~~'u~SO;;'t:::. ::::;::::::::::::::: Dall ChrIstl............... m G~1v~rth.................... 1~~ 4it 2~g1~ 204,245 3g1:m sort Arthur................... n Antonio.................. 348 119 216 1,30 2,445 40,725 880,458 TotaL. ......... 2,000 $3. 541,273 ~I ~~~........:..............:.....::..:::........... ~Ouston.~.:::::::::::::::::::::: Sh 126 ~f~~~;:~;~:::::::::::::::::! 4~~:m 2gtm November, 19l5 No. Valuation 27 $ 19,075 117 321.404 40, 557 88 69 60,565 631,998 869 66 100.997 115,650 81 60,260 102 263 740,67 5 72 28.497 289 189,318 187 116,851 28 856,760 27 11,685 1,680 $2, 793,792 Pctg. change valua.tion over year +140.0 - 20.8 + 27.7 +287.2 - 44.4 - 19.6 +275.0 .7 + 75.8 + 42.9 +101.0 + 98.9 - 74.4 - 21.8 + + 26.8 October, 1936 No. Valuation 32 147 127 142 469 77 251 128 460 181 284 161 42 21 2,522 Pctg. ch.ng. Yalu:Ltion over month 543,601 221,696 106,447 248,505 458.247 108,450 522,588 96,690 2,296,887 79,633 428,936 265,189 60,820 + + - 91.6 15.6 51.4 17.8 28 .8 21.5 16.8 87.3 48.3 48 .9 11.3 12.7 51.2 45.7 $5,448,486 - 85.0 ~ No. January I to November 30 1936 I9lS Valuation No. Valuation 883 $ 1,100,856 1.726 4,176,578 1.808 1,022,654 1,253 2,577.124 5,858 9,048,886 717 890,012 1,981 7.911,356 1,208 1,501,069 4,214 17,116,877 1.524 858,755 4,151,447 2,712 1,486 2,382,798 402 708,846 212 347,121 24,869 $58,778,817 818 1,686 1,253 648 4,305 524 1,219 1,235 2,895 856 5,966 1,425 303 270 22,903 $ 273,467 5,125,878 549,800 532, 005 8,826,000 1,072, 467 2,988,055 681,886 6, 808.911 629,699 8.962,154 1.192,782 2,084,568 287,132 $20,299,894 Pctg. chan,. vnlu ntlon over period +302.6 - 18.5 t 86.0 884.4 136.4 - 17.0 +169 .3 +137.7 +171.5 61.2 5.0 + 99.8 - 66.3 + + + 20.9 + 83.6 ·Increase over one thousand per cent. ------------------------------------------------------------------------------------------------------------------- 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Complied by the Board of Governors of the Federal Reserve System) Production, wage payments, and the distribution of commodities to consumers increased considerably from October to November. Wholesale commodity prices have advanced steadily since the end of October. PRODUCTION AND EMPLOYMENT The Board's index of industrial production, which makes allowance for changes in the number of working days in the monlh and for the usual seasonal variations, was 114, per cent of the 1923-1925 average in November, as compared with 109 per cent in October. Output of both durable and non-durable manufactures showed a considerable rise. Production of steel ingots increased further to a rate of 79 per cent of capacity in November, and output of automobiles also increased. Figures for the first three weeks of December indicate continued expansion in output of both sleel and automobiles. In the plate glass industry, where there has been a strike, production was sharply reduced in November, and activity at lumber mills declined, reflecting the effects of the maritime shipping strike on the Pacific Coast. Increases in output were reported at meat-packing establishments and textile mills, and sugar meltings and outpul of tobacco products declined by less than the usual seasonal amount. At mines, coal production increased and output of crude petroleum and iron ore showed a smaller than seasonal reduction. Value of construction contracts awarded, according to figures of the F . W. Dodge Corporation, continued at about the same rate in November as in the previous month. Faclory employment showed little change from October to November, although a decrease is usual at this season of the year, and the Board's seasonally adjusted index advanced to 96 per cent of the 1923-1925 average. The number employed at factories producing durable goods continued to increase, with the largest expansion in the automobile and machinery industries. There was a decline in employment at lumber mills and in the glass industry. In the nondurahle goods industries, as a group, employment showed a smaller decline than is usual in November. At shoe factories and establishments producing wearing apparel smaller than seasonal declines were reported and there were increases in employment at cotton and woolen textile mills and at meat-packing plants. DISTRIBUTION Department store sales increased substantially in Novem· bel', and there was also a rise in sales at variety stores and at chain grocery stores. Sales by general merchandise stores and mail· order houses serving rural areas declined from the high level reported for October. Freight.car loadings showed a smaller than seasonal de· crease in November. Loadings of coal, coke, and grain in' creased contrary to the usual seasonal tendency, and ship' ments of miscellaneous commodities and of most other classes of freight declined by less than the seasonal amount. COMMODITY PRICES The general level of wholesale commodity prices con· tinued to advance from the middle of November to the third week of December. There were substantial increases in the prices of wheat, flour, nonferrous metals, and rubber. Prices of wool, cotton yarns, and worsted yarns advanced somewhat further and cotton, pig iron, and steel scrap prices also increased in this period. BANK CREDIT The reserve posilion of member banks in recent weeks has been influenced largely by temporary seasonal develop' ments in connection with holiday currency requirements and mid-December financing by the United States Treasury. Notwithstanding the increased demand for currency for Christmas shopping, there was a further growth in demand deposits at weekly reporting member banks through the first half of December, reflecting additions to monetary gold stock, as well as a sharp increase in bank loans. At reporting banks outside New York City holdings of Government securities increased by $14,0,000,000 in the four weeks ending December 16, while at New York City banks they showed a further small decline. There was an increase of $100,000,000 in loans to brokers and dealers in secut'i· ties in New York City, largely for the purpose of buying United States Government securities. Commercial loanS showed a further increase of $150,000,000, carrying the total volume of such loans to a level $800,000,000 higher than a year ago.
@FedFRASER