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MONTHLY BUSINESS REVIEW
o f
the
Volume 27, No. 11
FEDERAL RESERVE BANK o f Dallas
Dallas, Texas, January 1, 1943
DISTRICT SUMMARY
The value of construction contracts awarded in the Eleventh
District declined sharply in November, after having been maint ained at an exceptionally high level during the preceding six
months; however, the total for the month was more than
double that in November, 1941. Petroleum production during
November was at about the same rate as in the preceding two
months, while stocks of crude petroleum in this district rose further and in the early part of December were substantially larger
than a year earlier. Drilling activity declined during November.
Weather conditions generally were favorable to harvesting of
the cotton crop and to livestock. Sales at reporting department
stores during November were slightly below those in October,
but were 23 pel' cent above those a year earlier. Holdings of
Treasury bonds by weekly reporting member banks in this district increased by an unusually large amount during the first
half of December.
BUSINESS
The value of consumer purchases at reporting department
stores in the Eleventh District declined slightly from October
to November, but was 23 per cent above that in November,
1941. As compared with a year earlier, there were substantial
increases during November in sales of all types of piece goods,
small wares, ready-to-wear accessories, women's and misses'
ready-to-wear, men's and boys' wear, radios, most miscellaneous
lines, and in all basement store departments. On the other
hand, sales of most types of house furnishings were below those
of a year earlier, pronounced declines occurring in sales of
mechanical washers, cabinets, stoves, mechanical refrigeratots,
oriental rugs, furniture, and china and glassware.
The ratio of cash sales to total sales during November continued at the high level of other recent months an? was substantially above that in November, 1941. Durmg recent
months the value of outstanding orders has increased considerably and at the end of November was 61 per cent above that
On the corresponding date in 1941.
Although department store stocks in this district usually inCrease substantially during the fall of the year, stocks of most
types of goods have declined during recent months. Compared
with a year earlier, there were declines during Nov~mb~r m reporting store stocks af all types of women's and m1sses readyto-wear, except coats and suits, virtually all types of ready-toWear accessories, most types of house furnishings except stoves,
various miscellaneous lines, all basement store departments
except women's and misses' ready-to-wear, and most types of
piece goods. On the other hand, stocks of men's and boys'
Wear generally were somewhat larger than those on Novem?er
30, 1941 as were certain individual lines such as rad10s,
muslins, ;heetings, blankets, and spreads. The declines, however, were more widespread and in sufficient amounts t? more
than offset the gains in certain other departments, w1th the
result that this bank's adjusted index of department store
stocks declined further to 89 per cent of the.l?~3-1925 average. Although restrictions on many types of c1v1lian goods have
been in effect for some time inventories in the hands of manufacturers and wholesalers which had been accumulated in earlier periods were unusually large and shortages are only now
beComing prevalent.
This copy is released for pub.
lication in morning paperB
-
Jan. 1
The demand for merchandise at reporting wholesale trade
firms in the Eleventh District fell off about 15 per cent from
October to November, but was slightly above that of a year
earlier. Most of the decline over the month occurred in sales of
hardware, groceries, drugs, electrical goods, and certain miscellaneous lines, but smaller declines were registered in other types
of merchandise. The value of inventories at reporting wholesale
establishments continued the moderate decline which has been
in evidence since April, 1942, and at the end of November was
8 per cent lower than a year earlier. Most of the decline during
November occurred in stocks of groceries, drugs, and hardware.
During the first 11 months of 1942, both the number of
commercial failures and the liabilities of defaulting firms in
the Eleventh Federal Reserve District were lower than during the comparable part of any other year in the past quarter
of a century. According to Dun and Bradstreet, Incorporated,
there were six commercial failures in the Eleventh District
during November as compared with nine in October and
fifteen in November, 1941. This is the smallest number of Commercial failures in the district for any month since records first
became available in 1916. The liabilities of defaulting firms
during November, which amounted to $35,000, were $49,000
smaller than in October, $221,000 smaller than in November
1941, and only slightly above the all-time low reached in Jul;
1942.
AGRICULTURE
Although the production of farm products in the United
States was in record volume during 1942, supplies of many
products may be insu:fl1cient to meet total military, civilian and
lend-lease requirements during 1943. Tentative farm production goals in the United States for 1943 announced by representatives of the United States Department of Agriculture
therefore call for substantial increases in the production of peanuts, hogs, lard and poultry, and moderate increases in the production of corn, grain sorghums, cattle and' calves, milk and
eggs. Proposed acreages for wheat, rice, oats, other feeds and
cotton are smaller than in 1942. Texas farmers are called upon
to increase substantially the production of poultry and dairy
products, grain sorghums, peanuts, soybeans, flaxseed, hogs,
cattle and calves. Relatively large reductions in the Texas acreages devoted to oats, barley, rye and rice are suggested, and cotton acreage goals for the State are set below the cotton acreage
planted in 1942.
During 1943, farmers must plant at least 90 per cent of their
acreage allotments and 90 per cent of the special war crop goals
allocated to them in order to receive maximum payments under
the agricultural adjustment program. Price support by crop
loans is guaranteed most crops at 85 per cent or more of parity
price or at a comparable price minimum.
Weather conditions during November favored the successful
harvesting of the Texas cotton crop, and by December 1, the
cotton harvest was substantially complete in all sections of trhe
State except extreme West Texas, the Panhandle and parts of
North Texas. During the first two weeks of December, unfavorable weather delayed harvesting operations in sections of
Texas and Oklahoma where cotton had not yet been harvested.
It is reported that pickers have left the western cotton fields and
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
it may be necessary to sled cotton which is still in the fields.
The Department of Agriculture in its December 1 report
made a further reduction of 110,000 bales in the estimated production of cotton in Texas. The current estimate of 3,113,000
bales compares with 2,652,000 bales produced in 1941 and the
ten-year (1931-1940) average production of 3,686,000 bales.
A per acre yield of 187 pounds of cotton from 8,015,000 acres
is expected in Texas in 1942, as compared with a per acre yield
of 165 pounds from 7,717,000 acres harvested in 1941. The
1942 cotton crops of all surrounding states are likewise somewhat greater than in 1941. The December 1 estimate of the
total United States cotton crop was placed at 12,982,000
bales as compared with 10,744,000 bales produced in 1941,
and the 1931-1940 average of 13,109,000 bales. Average
yield per acre in the United States in 1942 is estimated at
2?5 pounds on 22,660,000 acres as compared with a per acre
YIeld of 232 pounds of cotton on 22,236,000 acres harvested in
1941. Approximately 2.8 per cent of the 23,310,000 acres in
cotton cultivation in the United States on July 1, 1942 was
abandoned before the crop was harvested.
The Bureau of the Census reported that 11,539,420 running
bales of cotton, or 89 per cent of the crop, had been ginned from
the United States crop of 1942 prior to December 1, as compared with 9,592,229 bales ginned by the same time in 1941.
Approximately 2,673,000 running bales, or 86 per cent of the
1942 Texas crop, had been ginned prior to December 1, as compared with 2,143,000 bales ginned by the same date in 1941.
Lack of rain slowed the progress of commercial vegetables
throughout Texas during the last half of November, and light
frosts damaged tender vegetable crops in some areas of the State.
Planting of truck crops for later harvest was limited in the
State during the last half of November and the first half of
December because of insufficient surface water.
Weather conditions favorable to livestock prevailed throughout this district during November. Texas ranges have a good
supply of cured feed, the Plains and Panhandle wheat pastures
are providing good grazing, and an ample supply of grains and
WHOLESALE AND RETAIL TRADE STATISTICS
~----Pereentage ehange in:----~
Number ~----Net sales
Stookst-·of.
November. 1942 from
Jan. I to
November. 1942 from
Retail trade:
rejlortlOg
Nov..
October. Nov. 30.1942
Nov..
October.
Departmcnt stores :
firms
1941
1942
from 1941
1941
1942
Total 11th Dist....
48
+23
- 3
+11
- 3
- 4
Dallas............
7
+19
- 8
+ 6
- 1
- 2
Fort Worth... . ... .
4
+30
- 2
+14
+ 9
- 2
Houston .. :...... ..
7
+16
+ 2
+12
- 8
- 6
San AntoDlo. . .....
5
+27
- 4
+20
- 1
- 7
Shreve!!"!t........
3
+ 1
- 7
+11
Other Oltles.. . . ... .
22
+36
- 2
+16
':':'io
- 6
Retail furniture:
-2
72
Total 11th Dist .. ..
-t
-4
+13
Dallas ............
7
+28
-0
+6
+11
Fort Worth . . ......
3
-2
+33
+12
+2
-4
-7
Houston ...........
8
-3
+10
San Antonio .......
5
+16
+2
-8
+7
Independent stores:·
+21
- 8
+ 14
Amana. . . . . . . . . . . 200
New Mexico. . . .. . . 141
+ 7
- 6
- t
Oklahoma......... 423
+ 7
- 0
+ 1
+ 8
- 7
+ 4
Texas.. .. .. .. .. .. . 966
Wholesale trade:·
Automotive supplies
4
- 7
- 2
Drugs.(incl.liquors).
12
+22
-18
+24
':':",
':':' 2
ElectrIcal goods....
4
-51
-21
-16
Grooeries..........
27
+17
-12
+17
':':'4
':':'3
Hardware.........
15
-31
-21
+ a
- 16
- 3
Surgical eQP·t. . . . .
4
- 5
- 8
+ 8
Tobacoo.l; produots.
4
-23
+ t
- 4
....
. . ..
·Compiled by United States Bureau of Cellsus. tChange less than one-half of one per cent.
tStocks at end of month.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1923.1925 average = 100)
November November
Ootober
Soptcmber
1942
1941
1942
1942
Sales (daily average):
Without seasonal adjustment . ... ... .
191
150
170
171
With seasonal adjustment .. . ..... . . .
171
134
150
154
Stooks (end of month):
Without seasonal adjustment. .....•.
100
101
105
104
With seasonal adjustment ...... . .. . .
89
90
93
95
other feed is on hand in most areas of the State. Feed supplies
are adequate and range conditions satisfactory in New Mexico
and Oklahoma. Most livestock in this district are entering the
winter in fair-to-excellent condition, with both cattle and sheep
in good flesh. Although marketings of stock have been substantially greater during recent months than during comparable
months of 1941, with movement of sheep and lambs particularly large and marketings of cattle and calves exceeding precedmg peaks, there has apparently been no widespread liquidation of flocks or herds.
FINANCE
The reserve balances of member banks in the Eleventh Federal Reserve District continued to establish new records during
the latter part of November and the first half of December. The
total which had risen to $48 1,328,000 on December 10, fell off
about $14,000,000 on the following day when banks made settlement for the new 1% per cent Treasury bonds of June 15,
1948, allotted to them. Subsequently, however, reserve balances
reached a new peak of $48 5,746,000 on December 15. Average
reserve balances, which amounted to $467,670,000 during the
first half of December, '\\rere $32,606,000 higher than a month
earlier and more than $ 15 0,000,000 larger than in the corresponding period of 1941.
A verage excess reserves of member banks in the Eleventh District also rose to another new peak of $136,663,000 during the
last half of November, or about $53,000,000 above those in the
corresponding period of 1941.
The expansion in the demand for currency in the Eleventh
District continued during the latter part of November and the
first half of December. Federal Reserve notes of this bank
in actual circulation reached a new peak of $245,096,000 on
December 2, reflecting the heavy month-end requirements for
payroll and business purposes. During the first half of the
month the average circulation of Federal Reserve notes of this
bank an;ounted to $243,224,000, as compared with $228,070,000 durmg the first part of November and $133,160,000 during the first fifteen days of December, 1941.
Total loans of 33 weekly reporting member banks in the
Eleventh District, which had shown a slight recovery between
September 16 and November 11, resumed their downward trend
during the following weeks. On December 16 total loans of
weekly reporting member banks, which amounted to $306.275,000, were $5,554,000 below those on November 11, and
$63,377,000 below those on the corresponding date in 1941.
Most of the decline during the five weeks ended December 16
occurred in commercial, industrial and agricultural loans, but
all classes of loans, except real estate loans, declined.
Total investments of weekly reporting member banks in this
district amounted to $637,758,000 on December 16, an increase of $42,609,000 over those on November 11 and $310,485,000 higher than those on the corresponding date in 1941.
Although holdings of securities guaranteed by the United
States Government increased somewhat during the five weeks,
most of the increase was accounted for by additional holdings
of $46,346,000 of United States Government bonds. About
$40,000,000 of the increase in holdings of United States
Government bonds occurred in the week ended December 16
when payment was made for allotments of the new 1 % per
cent Treasury bonds of June 15, 1948. Holdings of other
types of United States Government obligations fell off somewhat during the five-week period.
The deposits of weekly reporting banks continued to increase
and on December 16 total deposits of $1,510,056,000 were
$360,284,000 above those on the corresponding date in 1941.
During the five weeks ended December 16 all classes of depositS
.I
MONTHLY BUSINESS REVIEW
3
CONDITION OF THE FEDERAL RESERVE BANK
experienced increases, and United States Government deposits
(Thousands of dollar~
reached a new high of $93,616,000.
co. 15,
Doo. 15,
Nov. 15,
1942
1941
1942
POPULATION SHIFTS
Total ollSh reserves. .. .. ... ...............
$515,185
·425850
1526673
Disoounts for member banks... . . . . . . . . ... ........
• ,
,
Estimates of population by state and metropolitan area re- IJl~ustrial advances .. ...... " . ........ . ,.:: :: : : :: :
1~~
200
30
230,064
78,~ri
170,U~
cently released by the Bureau of the Census indicate an increase Umted States Government seouriti es ........ ,.
~U 0lher i~vestments.. .. .. .. .............. ::::::
145
None
145
of 1.1 per cent in the civilian population of Texas between April Mo~~~rb~~'~ ~:~~~e' d~po"Sits' ............... ...... 231,278
78,715
170,744
... ....
485,746
208152
452,126
1, 1940 and May 1, 1942, as compared with an increase of 3.3 Federa} Reserve notes in aotual ..... ........ ...... 241760
oi roulation ..
134'064
228504
None
' 23
None
per cent in Louisiana, but decreases of more than 6.0 per cent in CommItments to make industrial advances. ...... ..
CONDITION STATISTICS OF MEMBER BANI{S IN LEADING CITIES
Oklahoma, Arizona and New Mexico. Eleven metropolitan areas
(Thousands of doUars)
Deo. 16,
Deo. 17,
No v' 211,
in the Eleventh District are credited with increases in civilian
1042
1041
104
population during the period, and only one center with a decline. Total loans and investments. . . . . . . . . . . . . . . . .. . . . . . 1044,033 $696,925 5906,978
........ .. .............
360,052
311,829
Substantial increases in civilian population during the two-year Tota l loans . . . .industrial .and. .agrieulturalloa~~: : : ::: 306,275
Commereial,
224,937
255,910
228,279
Open market paper. .... . . ....... .. . .. ..... .....
401
1,635
612
period are reported to have occurred in three population centers
Loans to brokers and dealers in seourities.... . . . .. .
2,985
6,354
3,314
on the Gulf Coast: Corpus Christi, the Beaumont-Port Arthur
Other loans for purohllSing or oarrying seourities ....
10,980
13,865
11,056
area, and Galveston. A majority of the inland metropolitan areas
f~:~~~~a~o:~~~: :::::::::::::::::::::::::::::: 20'm
28'm
20,~~~
All other loans . ......... ..... ............ . .. ...
46,651
68,322
47,560
in this district for which data are available are credited with
Total investments . ...............................
637,758
327,273
595,149
smaller population increases, the gains varying from 4.4 per
Unjted States TrCllSury bills.....................
67,465
51,342
68,875
Un!ted States Treasury Ccrtifioates of Indebtedness.
81.375
None
82,866
cent in Fort Worth to 12.0 per cent in San Antonio. The May 1
Unltcd States Trcosury notes. . .... ... .. .... .. .. .
106,231
42,552
108,000
United States Government bonds ... ....... ... . ...
284, 129
131,441
237,783
estimates are based mainly upon a count of persons who regisObligations.guaranteed by United States Gov't.....
39,840
30,674
37,936
tered for War Ration Book Number 1, May 4 to 7, 1942, and
58,718
62,264
50,6RO
Other seollrlties. . .. .. . .... .. ........ .. .........
Resorves with Federal Rescrve Bank...... . ........
303,380
180,061
278,765
do not reflect the total effect of expanded employment which Balonces with domestio banks· ... . . ...........• :. .. 312,748
316,795
286,141
Demand deposits-adjustedt
632,790
807.493
has occurred in the Fort Worth-Dallas aircraft production cen- T,me dejloslts .. .... ...... .. . .. .... ... ,......... 850,329
......................
131,219
132,936
130,088
93,616
43,398
61,283
ter or the effects of the recent increases in working forces at United States Government deposits............ .....
Intorba.nk
... .....................
340 648
423 322
ordnance plants and shipbuilding yards. No estimates of persons BorrowlDgsdeposits'. . . .. Reserve Bank. . . . . . . . . . . . . 43~1892
from Federal
NODO
None
None
'Bcginning July 8, 1042, re~iprooa l interba?k demand balonees reported on not basis.
in the armed forces stationed in this district or of those withtInoludes 011 demand deposl~ oth ~r than mterb~nk ond United States Government, less
drawn from the civilian population of these states during the oash Itoms roported as on hand or III prooess of colleotlOn.
period are available for publication.
DEBITS TO INDIVIDUAL ACCOUNTS
(Thousands of dollors)
On December 7, the War Manpower Commissioner anNovomber November Potg.ohange
Ootober
Potg.ohange
1042
1941
over yoar
1942
Over month
nounced that labor shortages had developed in Dallas, Houston,
Abileno ................. $ 17,478 $ 15,411
+13
20,843
- 16
Texarkana and Beaumont, and' were expected to develop soon in Amarillot . ............ ..
45,305
........
44,938
Austin .......... ....... .
67,339
38,031
64,034
Amarillo, Galveston, Waco and San Antonio. The Commissioner Beaumont .... . ... . . . . .. . 43,132
30,077
42,320
+2
Corpus Christit· ........
37,957
+3
also reported that labor surpluses existed in Abilene, Austin, Corsionnn . ....... " .... .. 39,133 ... 4',400
5,563
6,822
+24
-18
371,830
Corpus Christi, El Paso, Laredo, Lubbock, San Angelo and DallllS ..... .. ...... .... . 418,008
469,239
+12
-11
58,828
EI Paso ................
46,450
51,113
+27
+15
Wichita Falls. Three of the areas in which shortages are reported Fort Worth ............ ... 154,802
118,626
157,671
-2
+30
34,923
Golveston .............. .
32,005
50,367
-31
+9
to exist or are anticipated are shipbuilding centers, three are Houston ...... .. . ........ . 398,626
323,975
420,033
+23
-7
9,358
0,351
located close to ordnance plants and one is an aircraft produc- Loredot .. ···· .. .... .. . . .
25,822
Lubbookt .. ............ .
20,089
+2~
tion center.
17,572
18,298
Monroe, La.t . .......... .
-4
15,973
.. '1'1:577
Port Arthur ............ .
16,649
-4
INDUSTRY
8,196
6,535
Roswell, N. M..... .... ..
6,480
+26
14,125
17, 120
-17
Available information indicates that the value of construc- San Angelot ........ .... .. 111,764 .. 04',720
San Antonio ............
149,213
-25
62,654
58,370
68,608
-9
tion contracts awarded in the Eleventh District, which was at Shrevoport, !.s . .. .. , .... . 14,778
16.858
15,590
Texarkana' ......... . ... .
-5
an exceptionally high level from May to October, inclusive, Tuoson, ArIz ........... . 22,369
15,293
23,862
-6
14,250
13,858
14,606
-2
probably passed the peak in the latter month. In the six-month ~~~~:::::::::::::::::::
25,676
18,126
20,945
-14
21,915
21,489
- 1
period, construction contracts awarded in this district account- Wiohita Folla ....... . . .. . 21,237
ed for 12 per cent of total awards in the 37 states east of the Total-18 oities .......... $1,495,686 11,238,252
+21
$1,638,874
- 9
. . . ..
1,647,001
- 8
Rocky Mountains, as compared with less than 8 per cent of Total-24 oities. . figures. .. two banks in Texarkana, Arkansas]looated1,786,027
'Inoludes the
of
in tho Eighth Distriot
tNew reporting oenter; data rrior to May, 1942, not avoi able,
.
total awards accounted for by this district during the compartChange less than one·holf 0 one por oont.
able period in other recent years. Since May, practically all conGROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
struction in this area has been publicly financed war projects.
(Avorago of doily figures-Thousands of dollars)
Combined totol
Reserve eity banks
Country banks
The value of construction contracts awarded in this district
Gross
Gross
Gross
fell off about 50 per cent from October to November, s,ubTime
demand
demand
Time
demand
Timo
stantial declines ocurring in all major classes of constructlOn. November, 1040 ... . ...... $1,460,895 $233,412 1 842,576 1128,213 $ 627,310 $105,190
744,036 105,624
Novomber, 1941 .......... 1,742,346
238,156
908,310 132,532
Nevertheless, the November total was still more than double July,
818,906
1942 ...... . ... 1,914,513
226,947 1,005,607 127,615
90,332
that of a year earlier ; awards for residential construction were August, 1042 .......... 1,985,128 226,916 1,137,687 127,231 847,441 99,685
888,951 100,J04
September, 1042 ........ .. 2,055,183
227,472 1,166,232 127,368
about one-third larger, while those for all other types of con- Ootober, 1942 ...... .... 2,243,675 225,791 1,269,835 125,667 973,840 100,124
struction were two and one-half times as large as in November, Novomber, 1942 .......... 2,420,463 228,284 1,363,582 127,231 1,056,881 101,053
SAVINGS DEPOSITS
1941. Many of the projects under construction in the Eleventh
November 30, 1942
Poreen tago ohallgo in
savings doposits from
District in November are nearing completion, which may foreNumber of Number of Amount of
shadow a further decline in the volume of construction work.
savings
Nov. 30, Ootober 31,
savinJ!s
re~rting
depOSIts
1941
depositors
1042
anks
, The petroleum supply situation on the East CO,as,t,is becom- Beoumont ............ · ..
10,909 S 4,451,156 + 3.5
3
+1.9
26,800,429 + 1.6
80,431
8
+ 1.0
IDg more critical and a further curtailment of clvlhan use of DallllS ....... ...........
7,570,401 + 3.0
18,603
+ 2.6
2
l!:IPllSo ............... .
petroleum products in that area may become necessary. Total Fort Worth ....... .. ......
13,051,721 + 1.2
32,695
3
+ 1.3
10,921,205 - 4.4
18,371
4
+ .4
Galveston ........ . ... ...
demand for petroleum and petroleum products on the East Houston .................
32,957,313 + .2
74,884
10
+1.1
520,126 - 10.6
1,223
-13.0
3
Coast, including exports, is estimated' to exceed 1,300,000 bar- Lubbook .. ..... .........
2,964,123 - 2.9
5,089
- 4.7
2
Port Arthur ....... ....
rels per day by the Petroleum Industry War Council. Railro.ad San Antonio............. ,.
18,731,868 + 3.6
23,519
5
+ 2.2
11,739,989 - 4.1
25,388
.4
3
tank car deliveries to that area averaged 775,000 barrels dally Sbrovoport, Ln........•..
7,391
4,343,065 .5
+ 2.0
3
Waoo . .. ....... . . · .. · · ..
3,458,562 6,626
.1
3
+ .5
during the four weeks ended December 5, as compared with Wiohita Falls ..... .. ... ..
51,647
28,049,840 - 2.9
62
+1.1
All other ... , ............
peak deliveries of 857,000 barrels daily achieved during the
,2
365,276 $165,640,798 111
+1.1
TotaL, .........
week ended September 19. Pipe line, barge and ocean tanker
+1
MONTHLY BUSINESS REVIEW
4
deliveries are not making up the deficit between total demand
and railroad t ank car deliveries, and heavy withdrawals from
East Coast crude petroleum stocks have been necessary. Completion of the War Emergency Pipe Line has been delayed, but
further adjustments of pipe line facilities in this district are being made in order to furnish the Longview terminus with adequate supplies of petroleum when the line comes into operation.
D aily average production of crude petroleum both in this dist rict and in the United States has been maintained at a fairly
steady level since the beginning of September. Although the
daily average production of crude petroleum in the Eleventh
D istrict during November was 9 per cent below the average
daily production in November, 1941, it was somewhat greater
than that in any corresponding month prior to 1941. D aily
average produ ction of crude petroleum in other sections of the
United States during N ovember was 5 per cent below the level
during the same month in 1941.
Stocks of crude petroleum produced in the Eleventh District
increased throughout the year ended December 5, and on that
date stocks of crude in the major sections of Texas and in northern Louisiana were substantially greater than on the corresponding date in 1941 , with T exas stocks showing an increase of 24
per cent, and northern Louisiana stocks an increase of 14 per
cent. The gains in those sections of this district were partially
offset by the decline of 18 per cent in New Mexico stocks.
Throughout most of the same period, moderate-to-heavy declines in crude petroleum stocks were experienced by areas outside the Eleventh District. During the year ended December 5,
1942, stocks of Illinois-Indiana crude were reduced 47 per cent
and substantial withdrawals were made from Oklahoma, Rocky
Mountain and California crude stocks. On December 5, total
stocks of United States refinable crude petroleum were nearly
5 per cent smaller than on the comparable date in 1941.
Drilling activity in the Eleventh District declined 8 per cent
from October to November, and was 64 per cent below the
level of No vember, 1941. During the first eleven months of
1942 , 5,650 wells were completed in this district, or approximately 45 per cent fewer than were completed in the first eleven
months of 1941. Well completions in areas of the United States
outside of the Eleventh District were 25 per cent fewer during
the first eleven months of 1942 than during the same period
of 1941.
BUTLDING1PER MlT S
Percentage ~hange
Percentage
valuation from
J an. 1 to Nov. 30, 1042 ohan~e
valuatIOn
V. luation ; )'{ov.,104 1 Oct. ,1042 No.
Valuati on from 1041
1,750
- 08
$
- 72
286 $ 1,202,788
+ 1
- 19
227,030
440
011,062
+208
-65
14,133
-07
- 46
081 1,553,475
-69
27, 132
-80
- 65
1,769 2,465,285
+16
00,860
-70
- 20
1,421 0,390,505
-21
380,711
-77
7,1 18 6,284,736
+ 63
-60
-40
- 74
121,767
622 2,546,200
- 12
147,937
-52
- 57
2,868 10,243,353
+67
20,317
-98
2,360,555
- 56
+ 5
196,804
-83
2,492 11,230,020
+ 17
-38
11,400
-08
- 41
1,006 2,061,014
-37
8,801
-85
770
340,415
+ 13
- 70
- 12
340,404
8,950 4,452,783
+ 25
-39
-06
10, 120
- 00
1,008 2,012,017
-38
130,800
+ 31
033 1,284,577
+ 12
-68
- 54
- 10
68,148
344
641,007
-81
November, 1942
No.
Abilene . .. .. .....
Amarillo .........
Austin . . .........
Beaumont ... . . . ..
COif.us Christi ....
Da as .. . ........
El Paso . .........
Fort Worth .......
Galveston ........
Houston .... . ... . .
Lubbock .. .. ... ..
Port Arthur . .... .
San Antonio ... . . .
Shreveport, La ... .
Waco ... .. .......
Wicbita Falls . . ...
8
83
57
150
76
506
75
100
73
124
66
53
748
51
50
28
----Total. ..... 2,338 $1,813,1 85
-74
- 15 "30,777 558,098,872
"Docs not include number of permits for Galveston, Texas.
- 37
VALUE OF CONSTRUCTION CONTRACT S AWARDE D
(Thousands~or.dollaMl)
November November
Ootober J anuary 1 to November 30
1042
1941
1942
1942
1041
Eleventh D istriot-total.. . $ 60,478p
S 28,464
$128,901 $ 807,834p S 423,966
Residential. ... . . . .. .. .
10,019p
7,974
16,064
128,087p
11 7,32 1
All other . .. ... .... . .. .
49,850p
20,490
112,837
078,847p
300,645
United States"-total.. . ..
654,184
458,620
780,306
7,640,345
5,575,848
Residential. .. ..... .. ...
150,654
11 6,468
101,206
1,058,081
1,849,525
All other . ... .. . . ..... .
497,530
342,152
619,100
5,888,204
3,726,323
"37 States east of the Rooky Mou ntains.
P - Preliminary
SOUROE: F. W. Dodge Corporation.
Consumption of cotton at United States mills was 913,038
bales in November compared with 972,490 bales consumed in
October and 849,143 bales consumed in November 1941.
Monthly consumption of cotton during the twelve months ended November 3 consistently exceeded the consumption in corresponding months of preceding years. Since the peak in monthly consumption of cotton was reached last April, the amount of
cotton used from month to month has ranged from 4,000 bales
to 85, 000 bales below the April total. According to reports, mills
are experiencing some difficulties in maintaining the high rate of
operations due to labor shortages and the inability to make
machinery repairs and replacements promptly. The huge volume
of Government orders held by mills, together with additional
contracts awarded during November and the first half of December, is engaging a large percentage of mill capacity and is
restricting deliveries of goods to the civilian trade.
Current mill stocks of cotton totaled 2,440,684 bales at the
end of November, compared with 2,117,902 bales at the end of
October and 2,248,280 at the end of November, 1941. United
States stocks of cotton in public storage and compresses on
November 30, which amounted to 13,637,120 bales, were approximately 8 per cent larger than a month earlier, and 2 per
cent smaller than at the end of November, 1941.
°
ESTI MATE D CIVILI AN POPULATION
(T housands of persons)
May I,
April I,
Potg.ob an ~o
1042
1940
during period
465
407
- 6.5
2,435
2,358
3.3
Caddo Parish, inoluding Shreveport ............ .. .
157
150
4.7
New Mexioo .. . .... . . . ........... . ..... ... . . ..•..
400
532
- 7. 0
Oklahoma ... . .................. . .. . .. . ......... .
2, 181
2,327
- 6 .3
T exas ....... . ........... . ............... . .. . ... .
6,407
6,300
+1.1
Bexar County. including San Anton io ... .. . . ... . . .
354
31 6
+ 12. 0
DaUas County. inolud ing Dallas ...........•......
431
308
8. 3
E I Paso Coun ty, in~lud in~ E I Paso . . ............ .
136
126
7.0
Galveston COWlty, lllcludmg Galveston .... . ..... .
88
80
+10 . 0
H arris County, includ ing Houston ............ . .. .
555
520
4. 0
J efferson County, i l1clud1l1~ Beaumont-Port Arthu r .
160
145
+10 .3
MoLen nan Coun ty, includl ng Waco ......... . ... . .
100
102
6.0
Nueces County, including Corpus Christi ....... . . .
110
03
+28. 0
P ottor County, including Amarillo ... ... .. ..... . . .
51
64
- 5 .6
Torr~n t County, i n ol u~ ing For.t Worth ........... .
236
226
4 .4
T ra",s County, lllcludm g Austm . . .............. .
117
III
5.4
Uni ted States ..... . . . ......... . ... . . . ........ .
131,315
131,323
.0
SOUR CE: United States Bureau of Census.
~~:i~r[Lnn'n·.·.·.: ::::::::::::::: : :: : : :::: : :: :: : :::~: :
+
+
+
+
+
+
+
+
CRUDE OIL PROD UCTION-(Barrols)
November, 1042
Inoreoso or deereaso in dailY
average produetion from_
Total
Dailyavg.
production
prod uetion
Oetober, 1942
Nov., 1041
0,822,700
227,423
North Texas ...... . ..... . ... .
+ 3,078
732
6,359,750
West Texas .. ..... . .... . .... .
211,092
- 80,25 1
4,83 1
13,514,200
East Texas . . .... .. ......... .
450,473
- 21,820
+ 4,012
South Texas .......... . .. . .. .
5,200, 100
173,387
+10,147
- 52,350
0,384,900
Texas Coastal. . .. ....... . .. . .
312,830
+ 11,258
+ 2,152
+
Total Texos ...... .
New Mexioo ........... .. ... .
North Louisiana ....... . ..... .
41,28 1,650
2,032,800
2,877,350
1,370,055
07,760
05,012
- 146,085
- 10,272
+ 13,947
Total Distriot......
47,001,800
1,500,727
- 151,410
SOURCE: Estimated from American Petroleu m Insti t ute weekly reports.
+20,410
127
- 2,030
-
+17,347
CHANGE I N CRUDE PETROLEUM STOCKS
(Thousan ds of barrels)
Crude stocks
~------~ Percentnge ehango
Grade or origin
Deo.5,1942
I llinois-Indi ana......... .. ... ....... . .... .. .
0,432
Kllnsas.................... .. ......... .... .
6,853
Roeky Moun tain. . .. ..... ..... . .. . ...... ...
14 ,083
Californ ia. . . . .. . .. . . .. .. .. .. .. . .. .. . .. . . ..
31,001
Louisiana.. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .
12,500
Gu lf Coast . ...... .. , .. . .... .. .. ........ .
7,055
Northern .. .. . .. .. . .. .. . .. .. .. .... .. .. .. .
4,635
Oklahoma.... .... ............ .. ... .... .. ..
40,375
New Mexico.. .. .... .. ...... .. ......... .. ..
5,559
Texas .. ........ .. . .. .. . .... ... ...... .. ....
103,630
East Texas . . .. . .. .. .. . .. . .. . .... .. .. .. ..
20.833
West Texas................. .. ..... .. ....
24,581
Gu lf Coast.. .. ..... .. .......... ... .. ....
28,556
Other Texas . .. . .. . .. . .. .. .. . .. . .. .. .. .. .
25,208
All ot her. . . . .. . .. .. .. .. .. . .. .. .. . .. .. .. .. .
8,850
T otal United States-refi nable. . . . . . . . .
SOURCE: United States Bureau of Mines.
232,082
Dee.0,104 1
17,014
7,324
16,262
34,008
12,845
8,771
4.074
51,312
0,757
83.741
25,285
18,703
24,242
10,003
18,047
244,200
over year
-47 .3
- 0 ,4
- 13.4
- 9.7
- 2. 0
- 9. 3
+13 .8
- 21.3
- 17.7
+23 .8
+21. 4
+31.0
+17.8
+20.7
-32 . 0
-
4.6
MONTHLY BUSINESS REVIEW
JANUARY I, 1943
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System )
INDUS TRIA~
PRODUCTION
Aggregate industrial production in November was maintained close to the October level reflecting a continued growth of output in war industries and a seasonal decline in production
civilian
goods. Distribution of commodities LO consumers rose further in November and the first half of
December, reducing somewhat the large volume of stocks on hand. Retail food prices continued to
advance.
ol
ISO
IL
160
PRODUCTION
1
40
120
/
100
I
SO
:FfFfr I·II
1935
1938
1
940
1
942
1
936
1938
1
940
1
942
Federal Reserve monthly index of physical volume
of production, adjusted for seasonal variation,
100. Subgroups shown Ill'e ex1935-89 average
pressed in terms of points in the total index .
Latest figures shown are for November, 1942.
=
DEPARTMENT STORE SA ~E S AND
STOCKS
cr·,
'U
0
140
130
r
120
90
eo
70
f;7v
-_/
..,<0
v-,....
~
-r '
120
bf~J:
E
"
0
1
00
140
130
-../
1 /
\
1,..-/'-,
-"'_:_f'--
S'Toelt~
v
V
t~
10
00
90
eo
70
60
60
•0
~o
1936
1
937
1
938
1939
\9 40
1 1
94
1
942
Federal Reserve monthly indexes of va lue of sales
and stocks, adjusted for seasonal vlll'iation, 1928-25
average
100. Latest figures shown are for
November 1942.
=
COST OF ~IVING
C~O'''I!!!..-.j/-
110
1
00
90
,.
... .:. ~
6.._~L ... r~
130
120
"'-'-===Hl
F'-'
<-----l'--=-_I+-__+-I_-+_--i 90
1-_+__l-~,o:::oO+_ /-.1·'--'1'
100
eo ,--1
936
so
1937
1
938
1
939
1
940
1941
1942
Bureau of Labor Statistics' indexes, 1985-89 aver100. FIfteenth of mont h figures. Last month
age
in each calendar quarter through September 1940,
monthly t hel·eafter. Latest figures shown arc for
November 1942.
=
MEMBER BANK RESERVES AND RE~ATED ITEMS
24
r_!GOL~,~,~,L~,~::t:::~
22t20
IS
1-~'.:"'.:'=t="'':'''':"':U':'''''i-'-----i 16
"
wtWUII.1.HIt
iIIUl"V[ lAUHUI
1-~_~~,,~-+
___;', '4
~--+----~~,a-f1 12
/
Distribution of commodities to consumers increa~ed further in November and December with
active Christmas buying. At department stores, variety stores, and mail-order houses serving rural
areas, sales in November expanded more than seasonally. In the first half of December department
store sales continued to rise sharply and were considerably larger than a year ago.
Freight-car loadings in November declined about 7 per cent from their peak levels in September and October but on a seasonably adjusted basis rose slightly over the October level. Coal loadings rose somewhat alt hough a decline is usual in November. Shipments of other commodities
declined seasonally.
Grain prices advanced from the middle of November to the middle of December, while most
other wholesale commodity prices showed little change.
Retail food prices increased further by 1 per cent in the five weeks ending November 17 to a
level 16 per cent higher than in November, 1941. Prices of such fresh foods as arc uncontrolled_
fruits, vegetables, and fish--showed the largest advances from October to November, bu t price
increases in controlled items contributed about two-fifths of the total rise.
~IIO
Illllt
............ ,
DISTRIBUTION
COMMODITY PRICES
I l,c·"t
130
1
20
Maintenance of industrial production in November when the seasona l tendency is downward
was reflected in a rise of the Board's seasonally adjusted ind ex from 189 to 191 per cent of the
1935-1 939 average. This rise was largely accounted for by a further advance in output of durable
manufactures. Nondurable manufactures declined seasonally, while output of minera ls showed less
than the usual seasona l decrease. In all groups of products the proportion of output for war purposes was considerably larger than a year ago.
The increase reported for durable manufactures from October to November was in finished
munitions and industrial equipment for new plants which will be completed in large number over
the next few months. Steel production, at 98 per cent of capacity in November and the first three
weeks of D ecember, was down slightly from the October peak, but the reduction appeared temporary as the scrap supply situation had been relieved and as further progress was being made on
construction of additional iron and steel capacity. Supplies of iron ore on hand arc regarded as
sufficient for operations at capacity until movement of are down the lakes is resumed in the spring.
Shipments from Upper Lake ports this year totaled 92 million tons, and were 15 per cent above
the record established in 1941.
At cotton textile mills activity was maintained at a high level in November and at shoe
factories production declined less than is usual at t his season. Output of manufactured foodstuffs
showed a seasonal decline.
Construction contract awards in November were 10 per Cellt below the level of the three
preced ing months, according to data of the F. \'if. Dodge Corporation, but were still about forty
per cent higher than in November of laSt year. As in other recent months, publicly-financed work
accounted for over ninety per cent of all awards.
j
16 r--~I---+--~
BANK CREDIT
During the period of large-scale Treasury financing in December, total excess reserves of
member banks were generally above 2.5 billion dollars. Substantial purch ases of Government securities for the Federa l Reserve System offset the effect of drains on reserves by the continued heavy
currency outflow and further increases in required reserves resulting from a rapid growth in
bank deposits.
Reserve Bank holdings of Government sec urities showed an increase of 850 million dollars in
the four weeks and reached a total of 5. 5 billion on December 16.
At reporting member banks in 101 leading cities hold ings of United States Government securities increased by 800 million dollars in the four weeks .ending December 9. Treasury bills accounted
for practically the entire increase, with almost two-~lurds of the amount going to New York City
banks. In the week end ing December 16, b o~d hold11lgs rose sharply as banks received their allotments of the new 1 r.; per cent bonds subscnbed on November 30-December 2; allotments of this
issue to all banks totaled 2 billion dollars. representi ng 85 per cent of subscriptions.
Total loans showed little change over the four weeks ending December 9. Commerc ial loans
declined by 200 million dollars, with about .half the d~cline at New York City banks, while loans
to brokers and dealers in~reased. over the .penod, reflect l ~g largely advances made to sec urity dealers
in New York in connectIon WIth the VIctory Fund dnve.
Payments by bank depositor~ for new Government security issues res~ l t.ed in a decline of
adjusted demand deposits and a rISe of U. S. Government depOSI ts to 5.8 b.Jhon dollars in midDecember, the largest total on record .
UNITED STATES GOVERNMENT SECURITY PRICES
: r-- "'''j'- '"Wi
1
940
1
941
1942
1940
\941
/942
Wednesday figure s. Latest figures shown nre
for December 9, 1942
Prices of United States Government securities have been stead y in the past three weeks followdJ'llstmcnt in the lattel' part of November when the Treasury an nounced the drive to sell
.
lllg an a dollars of sec urities in December. Long-ter m taxa bl e bOn d S arc se 11'
9 b'll'
mg on a 2.36 per cent
yield I~~is on the average and long partially tax-exempt bonds on a 2.09 per cent basis.
MONTHLY BUSINESS REVIEW
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
----Texas
United St.tes-------Augu.t I to November 30
Augu.t I to November ao
Thi. se••on
Last season
Thi. se.son
Last .eason
Cotton.eed received .t mill.
(ton.) ........ " .. , ....... .
802,712
720,880
3,709,000
3,091,212
Cottonseed cru.hed (tons) . . ...
536,470
440,696
2,074,795
1,783,102
Cottonseed on h.nd Nov. 30
(tona) ........... .. ....... .
359,191
307,378
1,713,036
1,438,039
Production of products:
Crude oil (thousand Ibs.) ....
150,216
127,785
639,972
550,738
C.ke and meal (toos) . . .....
238,600
190,728
913,129
778,187
Hulls (tona) ... .. ......... .
133,408
113,140
500,716
447,843
Linters (running b. le.) ..... .
158,514
120,125
617,864
514,586
Stocks on hand November 30:
Crude oil (thousand Ibs.) ....
20,293
26,886
61,294
70,555
C.ke .nd meal (ton.) ... .. ..
59,989
120,818
11 7,778
350,870
Hulls (toos) ... ............
39,224
113,445
72,304
244,310
Linters (running bales) . .....
43,545
40,313
148,727
137,880
SOURCE: United States Bureau of Cen.u •.
DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(B.les)
October
Au~ust 1 to November ao
November November
1942
1941
1942
This season Last se.son
Consumption at:
Tex.s mills ........... .
21,048
10,337
21,904
84,828
70,778
United States mills .... .
913,038
849,143
972,490
3,770,700
8,354,806
U.S . • tocks-end of month:
In eon.uming est.bm'ts. 2,440,684
2,248,280
2,117,002
Publie.tg. & compresses. 13,637,120 13,959,627 12,674,414
COMPARATIVE TOP LIVESTOCK PRICES
(Doll.r. per hundredweight)
~---Fort Worth
S.n Antonio - - Nov.
Nov.
Nov.
October
Nov.
October
1942
1942
1941
1942
1942
1941
Beef .teer...... . .. ... . .. . S15.00
$12.50
$11 .25
514 .00
513 .00
$ 9.85
Stocker .tecrs ... ..... ....
12.50
10 .25
12.00
'j:i :25
Heifers .nd yearlings . ... .
14 .05
14 . 25
11.75
10 .50
13.50
9.75
Butcher cow......... .. ..
11.00
7.75
10 .75
10. 00
7.50
C.lves .... .. ............
13 .00
12.75
12 .65
10 .25
12.50
10.00
14 .35
15.00
14.05
10. 80
14.00
10.00
14.00
10.50
13 .50
~~k::::::::::::::::::
LIVESTOCK RECEIPTS-(Number)
~For tWorth
Nov.
1942
C.ttle .... .. . ............. 91,002
C.lves . .. ............... 69,762
55,693
: 144,879
r~e~~::::::::::: : : :::::
Nov.
1941
58,341
48,650
38,113
33,624
October
1942
101,259
65,942
46,844
220,036
Nov.
1942
37,488
56,003
11,733
27,712
San Antonio - - Nov.
October
1942
1941
31,450
17,158
44,896
28,994
11,340
11,555
37,229
7,589
CASH FARM INCOME FROM THE SALE OF PRINCIPAL FARM PRODUCTS
(Thousands of doll.rs)
~Septcmber, 1942~--
Tot.1 rcceipts----~
~ Receipts from: ~
Sept.
Sept.
J.n. 1 to Sept. 30
Crops Livestock· 1942
1941
1942
1941
$ 1,350 $ 2,249 S 3,005 S 3,240 $ 64,040 $ 50,117
21,593
3,733
25,320
13,237
97,301
07,579
New Mexico ...... ..... ..
2,179
2,902
5,081
4,039
144,570 105,010
30,047
233,410 100,573
Okl.homa ........ , . .... .
15,917 • 22,314
38,231
77,588
39,520
117,058
Tex.... . .. .. . .... .. .... .
108,123
590,288 408,710
~~i~i:~...'.·.::: :: ::: ::: ::
Tot.l. .......... S118,583 5 70,718 5189,301 $159,292 51,130,269 5851,995
·Includes r.'eipt. from tbe s.le of Iivesto,k .nd Iivestook products.
SOURCE: Untted St.tcs Dep. rtment of Agriculture.
