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~.,I'IIIII'I'I;;'I~III'I'II""'I';IIItI'I'I'I"';'III'I;'111I11~.," II"~"IIUIII"'III.'II ;II';IIIIII;"~"flll;IIIII""IIIIIIII' ,.,11111111,1111111111, •• 11''''11,.1111111111111.11111'"11111111111111111'111111111.11'1I .. , ••• II ..... IIII'lIill ....... II .. : ~11.' •• I.,'I' •• I " I I ' I ••• III.III.III.,II.".,IIIIII"1 1'1111""'1"'1'1'1"'1'1'1'1"1'1'1'1'1"""""'".'11,.1""""""""' •• '1 •• 1.""., ........ 11""'.,""'1.1,11"" : •• ,.,',11'1""",.1.,11 •• ,',.,."".,. """""""II"II'I"'I"'~ : MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS C. C. WALSH, CHAS. Chairman and Federal Re.erve Agent c. HALL-W. J. EVANS, A.slstant Federal Re.erve Agenti (Compiled June 15, 1927) :: 1'\111111111'1'11111'11111'11"1'11111"'1111"111111111111111.,,111,111111,.,1,111111,1,.11,1"1'11111,1'1'"'1"1111111'11111111111 •• '1.", •• 1"1,',1,,.,.,"',.,1111"",11'11",1'1.,1,1,.,1111111,,111111,1'1111'1111'1111,1,111.",'11"".1'1""11 : ~1I11111"11111"IIIIIIIII'''''lltllIlllllllllllllI'II''''"1I111 ,'1",1111111111,111,11"'1111111,111.,1,111111""'11111111,11111,11,1'111111,1,1,.,111111,1,1,,1,.,,11111.,1'111111,111,11111111111111111111111111111111111111111,.,1111" .. 11111 .... ,1lilt. Volume 12, No.5 Thi. copy released for publication in afternoon papers Dallas, Texas, July 1, 1927 June 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .=. . .:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DISTRICT SUMMARY ~: ~: .' ~;~:;;~~ :~ ~:~~; m: __:::§ Eleventh Federal Reserve District § May Bank debits to individual accounts (at 17 cities) .......................................................................................... $715,200,000 April $758,554,000 $ 6,282,212 Reserve Bank ratio at end of month....................................................................................................... ......... 64.4% Building permit valuations at larger center....................................................................................................... $ 9,459,467 $ g~:::::::~~:~ ~!~II~~: (m::;;i~i;;~)·::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~:::::::::::: $ E ~:::!:;n~natnkty~:n:a~~·;;;;;;;b~;: ..b~;;k;;··~t··~·;;d··~f··;;;~;;th:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~::::::::: E:.: :: E Oil production (barrel.) ............................................................................... ·............................................................ : Lumber order. at pine mills (per cent of normal productioll)........................................................ ........... $ l,220,4g~ "20,684,658 85 % $ Inc. or Dec. Dec. 6.1 % 4.080 ,510 P.~2 68.1 % DIDneeccc". 8,537,587 l,685,2~~ Dec. 19,871,810 Inc. 82 % Inc. 54:~~ 8.7 P~~o.l·~n:~s ~: § § §:::_ 27.6 % 4.1% § 3.0 points : Gl 'IIII.II.,IIII ••••• I ••••• , ••••••••• , ••••••• I.III •••• 111,1.,."",.111.1,.10."""".,.,.,,111,1,1,.,.111111111111111111111111111,1 •• ,.'1' •• 11,.,.,1".111., •• 1 •• 1.1.,1.,11'1"' •• 1".1"11.,,'1'11""".,.,11,,",.1'.,I.II.IIIIII"II.IIIIIIIIIIII.,I,@ The breaking of the severe drouth which covered an ex· tensive area of tnis district was the outstanding development during the past thirty days and places a decidedly brighter outlook upon agricultural and business prospects. Extensive areas in South and West Texas and Eastern New Mexico had received little worthwhile rainfall since last October. In these sections, small grain crops had deteriorated rapidly, the planting and growth of row crops was retarded, and ranges and livestock were suffering. The rains revived the ranges, replenished the supply of stock water and enabled the farmers to proceed with agricultural operations. Widespread improvement should be noticeable in a short time. In other parts of the district, the rains came in time to save the corn crop and stimulated the growth of other crops. Fair to goo.d feed crops are now praotically assured and the condition of cotton in the old cotton territory is generally good. Due to the light rainfall during May, the farmers ~ere able to make rapid progress with planting and cultivation and have to a large extent overcome the handicaps of a late start. Harvesting of small grains is well under way and indications are that the yield this year will be li ght, as the rains came too late to be of much benefit. The distribution of merchandise at wholesale and retail reflected largely the effects of seasonal influences. Department store sales were three per cent grea ler than in April and were practically the same as during May, 1926. The Volume of wholesale trade declined seasonally as compared to April and continued to fall short of that during the same 1l10nth of last year. While business appears to be somewhat SPotted, confidence in the soundness of the business structur~ i~ evident and wholesalers and retailers generall y are OptimIstic regarding the future prospects. Debits to indi~hdu~l accounts at seventeen centers were 5 per cent less an In the previous month but exceeded those ill May, 1926, by 6 per cent. The past month witnessed a heavy withdrawal of deposits and an increase in the demand for credit. The deposits of member banks declined $16,623,000 between April 27, and May 25, but on the latter date they were $28,44.9,000 greater than on May 26, 1926. Federal reserve bank loans to member banks increased $1,661,4,37 between April 30, and June 15, due to the heavier demand for credit incident to the financing of agricultural operations as evidenced by the fact that the increase was due entirely to the borrowings of country banks. At the reserve city banks, a decrease oc· curred in both loans and borrowings from the Federal Reserve Bank. That a large volume of funds in this district is seeking an investment outlet is shown by the fact that the cash subscriptions to the June 15, issue of 3% per cent United States Treasury Bonds sold at 100Y2 amounted to $23,858,000 against which allotments to the extent of $U,318,4.00 were made. Exchanges at the close of business on June 17 totaled $5,082,550. The business mortality rate reflected a distinct improvement during May. The number of failures was not only smaller than during either the previous month or the same month last year but was the smallest of any month since last September. While the indebtedness of defaulting firms was substantially larger than in May last year, it was the smallest reported for any month during the current year. Construction activity as measured by the valuation of per· mits issued at principal cities was U per cent greater than in the previous month but 26 per cent less than in the cor· responding month last year. Although shipments and new orders for lumber were slightly greater than in April, they were substantially below those for May, 1926. The production of cement reflected only minor changes but shipments of cement were the heaviest recorded in several years. CROP CONDITIONS Rainfall during May was considerably below normal South, West, and NorLhwest Texas and Eastern New Mexico throughout a large portion of the di sLrict and the drouth in became acute. In North and Northwest Texas and Eastern This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW New Mexico the planting of row crops was delayed and small grains deteriorated rapidly, and in South Texas the dry weather caused a sharp deterioration of all crops. The rains during the first half of June broke the drouth in a large portion of the dry area and permitted the resuming of planting operations, yet there are some sections where no relief has been obtained and more rain will be needed shortly in a large portion of the former dry area. In other sections the rain came in time to save the feed crops and has greatly benefited the cotton crop. Conditions are now expected to improve rapidly. As a result of the dry weather the farmers in many sections were able to make rapid progress with the cultivation of crops and when the rains came the fields were generally clean . The situation in North Louisiana continues to reflect the effects of the flood. Replanting of crops in the flooded areas is going forward as rapidly as conditions will permit. The harvesting of small grains is now well under way and reports indicate that yields will vary consid erab ly. In some sections the crop is a total failure while in others the yields will be very good. In many instances, grains have been cut for hay. The Department of Agriculture reported that the condition of the Texas wheat crop declined from 75 per cent of normal on May 1, to 41 per cent on June 1, and that on the latter date the indicated production was only 15,870,000 bushels as against an estimate of 27,600,000 bushels a month earlier. The rains came too late to be of much benefit to the crop and, in some instances, have interfered with harvesting. Reports indicate that that portion of the crop sown early and o-n well prepared land has produced fair yields. The condition of the oat crop was reported as 47 per cent of normal on June 1, which represents a decline of 22 points during the month. A large portion of the crop is too poor to be harvested for grain and is being cut and baled for hay. In the drier portions of the district corn ' and sorghum suffered greatly from the lack of rainfall and high winds but in other sections these crops did fairly well. While corn had begun to suffer to some extent, the recent rains have practically assured a fair to good corn crop in most sections as corn was largely in the tassel stage of development and moisture was needed only to fill out the ears. While the condition of tame hay declined to 75 per cent of normal on June 1 the recent rains greatly improved the situation and good crops now seem probable. The first cutting of alfalfa has been made and the cane crop is doing well except in the dry areas. Wild hay is reported to be from fair to good in the heavy producing sections. , The condition of the cotton crop in the old cotton territory in Texas and Southeastern Oklahoma is from fair to good. The crop is somewhat earlier than a year ago· the f.ields generally are clean and an unusually large pr~por tIon of the crop has been chopped to a stand. In portions of South Texas the dry weather has materially affected the crop. In West and Northwest Texas, while a considerable amount of cotton was planted dry, planting of a portion of the crop was delayed and much of that which was up made only poor progress. Factors which may affect the cotton production this year are the large increase of boll weevil infestation in all weevil territory and the reduction of about 40 per cent in the amount of fertilizer being used. The Texa~ rice crop has made better progress than usual and on June 1, the condition of this crop was reported as 94 per cent of normal. The condition has been further improved by the recent rains. Stands generally are reported to be good, particularly in the early sown fields. Farm labor supply in Texas on June 1, was, estimated at 116 per cent of demand as compared to 104. per cent a month earlier. LIVESTOCK The past month witnessed a sharp deterioration in range and livestock conditions throughout a considerable portion of the district's range territory. The drouth in South, West and Northwest Texas and Eastern New Mexico had become acute and livestock was suffering from the serious sho-r tage of range feed and the lack of stock water. In some instances stock was moved to better pasturage and in others feeding had been resorted to. In parts of Eastern New Mexico practically all of the stock had been shipped out and the remaining portion is in poor condition. While ranges have deteriorated rapidly in West and Northwest Texas, livestock has been holding up well under the circumstances. In ~outheastern Arizona, Western New Mexico and that portIOn of Texas not affected by the drouth , range and livestock conditions are generally good. The general rains have. extende.d ~ver a considerable portion of the dry area, partially relIevmg the extended drouth and conditions are now expected to improve materially. The average condition of cattle ranges in Texas was report~d as 84. p~r cent .of normal on June 1, representing a declme of 8 pomts durmg the month and 15 points from the average condition a year ago. Condition of cattle declined 4. points to 88 per cent of normal during the month. The adverse range conditions have affected sheep and goats less than cattle. The condition of sheep was 92 per cent of normal on June 1, a decline of 2 points during the month, and goats were 94 per cent, a decline of only 1 point. There have been unusually heavy losses of lambs from the screw worms. Shearing is practically completed and the wool clip was of extra good quality. The Department of Agriculture reported that the majority of the clip has been sold, the average price varying from 31 to 35 cents for short wool and 35 to 4.1 cents for long wool. Movements The receipts of cattle, calves, and sheep at and the Fort Worth market during May reflected Prices a substantial increase over those of the previous month but the arrivals of cattle an.d sheep were less than in May last year. While the receIpts of hogs showed a further large decline from April, they were considerably larger than a year ago. Cattle prices during May followed an uneven course. During the early part of the month prices worked to lower levels and then turned upward about the middle of the [!J1111111111.,IIIIII.II ••••••••• I ........... "III ........... ,111"'111111111111111'111"1111111111111111111111111.1'11111 1(!l E FOR'I1 WORTH LIVESTOCK RECEIPTS : 15.~:~ : i~l 'n:! l ~L~:*l ~ lf! i~:!ill : Sheep ................ 100.869 106.419 L 6.060 68.464 G 31.896 : 811111111.111.11.1 ••••••••• 1.11111 ••••• • •••••••••• 1111'1111111'1111111111 1 1111111111111111111""111"1'1111I'I 'I IIIIIIIG] fiil.IIIIIIIIU .. IIIIIIIIII ........................ UIlIlIlIIIlIlIlI . I.IIIIIIII.ltlllt .. 11111I11I111I11I1I1I1I1I1I1I1I1IIII(!l 1_------: _ § : ~~m-:~~:::. :~:::::='Ei~: P~~i: ;1~0:.·26:1i~ Butcher cows .................................................... 8.00 Stocker cows .............................. ...................... 6.00 Calves .................................................................. 10.26 Hogs .................................................................... 9.86 Sheep ......................................... _......................... 8.75 Lambs .................................................................. 14.00 6.26 6.26 10.26 14.60 8.66 16.76 __ ----_:! 11.709.60 § 16.60: tEll •••••••• IIIII •••••• I •• I ••• I.II ••••••• III •••• 111 •••••• 111111'11'1'.1 1,,1.1 •• 111111111.11.11 ••• 111111111111111111111111111!l MONTHLY BUSINESS REVIEW month. Toward the end of the month and during the early part of June the market was again reactionary. However, about the middle of June prices strengthened and some of the best prices of the year were paid for fed cattle. Hog prices reflected an almost steady decline and quotations reached the lowest level recorded in more than two years. Sheep and lamb values also declined. CoUon The May receipts and exports of cotton Movements through the ports of Houston and Galves· ton again reflected a substantial increase as compared to the corresponding month last year. While the exports of cotton (including linters) during May from all United States ports were 26.6 per cent less than in April, 3 they were 49.7 per cent greater than in May, 1926. Exports for the len months of the current season were 38.6 per cent greater than during the same period last year. 01111111, ••• ,11, •• 111.11 1•• • 11 ••••••• , • •••• • • ' •• 111 ........... 1...... ... .... . ...... 11 .... 1111 ..... 1111 .... .. ... 11 II'II'I~ CO 'M ' ON MOVEMENTS THROUGH THE PORT OF HOUSTON May 1927 May 1926 Net receipts .... ................ 62,583 Elxports ............. .................. 166,056 Stocks , May 31.. .. ........ .. .. .. .. August 1 to May 81 This Sea son Last Season 35.267 84,688 3.540.882 2.477.145 435.271 2.583.200 1.686.887 484.810 [!JII ........ IIIIIIIIIIIIIIIIIIIII •• IIIIIII ....... IIIIIIIII ............ IIIIIIIIII ...................... UIlIlIl ....... UI.m 011 ..... 11.111111111111111111111111111111 ... 111 ......... 111 ... 11 ... 111 .. 1111111111111111 .. 1111111111111111.11111111111118 § : SEASON'S RECEIPTS. EXP ORTS. AND STOCKS AT ALL UNITED STA'IIES PORTS :: :: 8 .............. 111 .. 111111111111111111 .. 111 ......... 11111111111111111111111 .. 111111 .. 1111111111 ....... 111111 .... 11111 .. 118 ~ :: :: ORT OF GALVESTON: :: :: : § § August 1 to May 81 E T his Season Last Season ~ R eceipts ................ ............ ................................ 12.396.036 10.270.282:: EX llO,·tS : Great Britain ............................... 2.464.926 2.160.298 E § § F"ance .......................... .................. 968 .065 Continent ...... ................................ 4.965.877 Jap~n-China ................................ 1.708.002 MeXICO ........................................... 16.949 S Total foreign ports ...................... 10.128.819 tocks at ail U. S. ports. May 31.. ...... .... 1.687.445 E CO'!'TON MOVEMENTS THROUGH THE P :_- - :; :__: May 1927 Ne t receipts ................... 100.086 EStXopcok's·t.·s M..a...y.... 3.. 1............. .. . .................... 209.414 May 1926 54.400 121.526 August 1 to May 31 This Season Last Season 3.761.997 8.~0056·.m ••.:~: _§ : 2.980.298 2 ·m.·~~~ •~ ; 855.818 8.150.267 1.086.14 2 44.981 7.297.496 826 .196 :: :: :: § § :: tEllIllllll.III ••• I ••• '.IIII •• IIIIIII.IIIIIIIIIIIIIII"I.1'11,"1'11 1' 11111'1"1"111'11"'1"111""11,'111111 •••• ,111 ••• [;] Gl II.,II ••••• I •• I ••• ,II ••• I •••• I ••••••• I ...... , ..... I ••• 1,., ...... ,., •• 1 ••••• 1111 ••••• 1 .. 1 ••••• 1,1 •••••• 11.11 •••• ' 11 " " ' 0 1!J ..... IIIIU .... IIII .... I ....... Utl ... I ... IIU .... II ...... I .... III1 ........ UIlI .... 111I ......... UIl.U.I.II.IIIII I II , 1!] ~:" :_ .11I.1I11I ••• IlI1ItIlIUUIIII.II.IIII.IS"p"O·!·T,u·C"OTIIIIIT"·O"N .....P"R".I.C"E".S ••••• I •••••• I •• I ••••••••••••••••• 'I.II' I@::_" ~:; ~~::. B~:L::::::O~~::~~;~; ~ :1~":0;:0 :0~ I (Middling _:::::1 _ 1;1' c~~a:r~s: ~ 8 1...... ml .. Total Basl:lg~ay. § New Yorlc ............... ................ ..................... 17.05 For other foreign ports .. .......... ...... .... ............ ...... 88.400 F tits 1 000 ::§_ ~~~ d·~·~~t;;:::::::::::::::::::::::::::::::::: ::::261:857 308.088 ___ .. .................................................................. 805.867 : 828.58R ~ N ew Orleans .. ........................ ...................... 16.69 Dalias .................................. .......... ......... .. ..... 15.76 Hous ton ........................ .......... .......... .. ........ .. .. 16.65 Galveston ................................ .......... ............ 16.95 192iow JUfge2i6 15.45 15.09 14.35 15.15 16.20 16.95 16.65 15.60 16.70 16.65 I § -:=:_ § § 8 ............. 11 ........ 11 .... 1111111111.111111111 .. 1111" .. "11111.11 ....... 1111111 ... 1................. 111111., •• 1111118 1111.1 ........ 111111 ............... 1 ..... 1 .. 11111 ............................... , .. IIUIU.IIIIU'IIII UIII IIUII!J I •••••••••• III ••• • • • ••••••• • ••• , ••••• ,.I. ••••• I • • , •••••••• 11., •••••• 1 1 •••••••••• 1 •••• 1111 •• 11 ••• 11 ••• 1 •• 1,.1 ", .1111, 111 , •• 11 1111 1, 1 11 1 ' 11 1 ••••• 11"""'.1.,.1, ...... 111111 1 .111., •• 1 ••• 11 •• , •••• 1 ••••••• 11 ••••••••• 1 ••••••••••••••• 1, •• 1,.111 •••• 111 18 I : COTrON CONSUMED AND ON HAND §E COTrON GROWING STATES : : : May 1927 May 1926 456 ,286 362.987 I g~!~~) ~~n~~~~:~·fi~·3~~;~:~·;;~~:·~·~~~::: : : : : : : : ~: : : : : : § (b) in public storage and compresaes.... .................. :: UNIT~'" "..., A ugust 1 to May 81 This Last Senson Season :::::::~: S.:::.,::: 2. 516.811 May 1927 63n,024 May 1926 §: STATES Aug ust 1 to May 81 :: This Lalt: Season Season: 516.876 2. 725.488 ::::::::: 2.868.947 ::::::~~: 2.965.447 I § [!J 1•• I ••••••• , •••••••• II •• II •••• III ••••• I' ••• • ••• II •• I.1. ' ••• ' ••••• 1111 •• 1 •••••• ,.1.' ........... 1.11 •• 11, •• 1 •• 1""" ' IIII • • II••• I.,II.I ••• IJI".I"',III ••• III ••• 11.111., ••••••••• 1111.1111""1.1 •• '1111111. 1 111'1111", •• II.IIIIIIIIIIII'IIIII •• II"" " "[!J . COTTONSEED The average price received for crude oil and for cake and meal by reporting cottonseed oil mills during May showed an increase as compared to the previous month but that received for hulls and fOl" linters was less. There has been a heavy demand for cake and meal throughout the current season. Although the production of cake and meal during the current season has exceeded that of the previous season Gl' ••• II' ••• , •••••••••••••••••••••••••••• I ••••••• I ••••• , ••••••• 1.' 1 •• , 111, ••••• 1 •••••••• '.11 ••••• 1 ••••• 11111 ••• ,., •••••• Il!] STATISTICS ON COTTONSE1W AND COTTONSEED PRODUCTS 'rexos Onlted States August 1 to May 81 Augus t 1 to May :11 This Season Last Season 'Phis Season Last Season Cottonseed I'eceived 6.484.681 6.266.84 7 at mills (tons) .... 1.887.602 1.878.548 Cottonseed crushed 6.451.178 6.108.664 (tons) .................. 1..827.961 1.388.708 Cottonseed on hnnd 56.650 178.435 10.988 (tOllS) ................ .. 64.848 Crude oil produced (Ibs.) .................. .. 511.454.680 889.728.000 1.826.909.116 1.588.942.836 Calce nnd meal Pl'o2.549.116 2.740.437 duced (tons) 647.000 840.844 Hulls produced 1.518.886 1.800.255 889.000 549.109 Li~~~:) pl'~d~'~~d""" (GOO-lb. hales) ...... S tocks on hand ?1ay 81 : CrUde oil (lbs) Cnke and m eal . .. .. (tons) • t ~IUlis (t~~~i"":::::::::: iii.., n ters (600-lb. bales) .. .................. 298.160 268,000 1.018,808 1.028.008 9.511.609 487.000 41.680.788 8.267.000 31.805 64.065 63.000 59.000 1019,467 219.784 28.675 37,000 122,094 :: ~: : (!11111 .. IIIU .. IIIII ... III1 ..... I .. II ..... IIItIl ... It ...... I .. IIIIU .. 111111111111111I11 ••• IIIIIIIII.IIII'III.,I.l l llI ll lr:J :: OOT'l'ONSEED PRODUCTS SHIPPED AND AVERAGE _:1::_ REOEIVED Crude oil .............................................. Cake nnd mea!........................ ............ Hulls .................................................. .... § Linters ...................... .................. ......... BI ... ,....... ,........................ PRICE >;:::::.~". ;:~':"~ \,;\~ 6.194 ,340Ibs . $ .0748 pel' lb. 4.966 tons 29.88 per ton 6.680 tons 4.84 per ton 2.902,877 lbs. .0245 per lb. I ••• III ........... II ••••• ,' ••• 11 ••• ' • •• ••• 1.·· • ••••••••• , .......... 11 •• ' ••••• I ••• ,m TEXTILE MILLING 285.307 148.028 ~ : 147.915 :: •••••••• .............. 1 ............ "., ........ 1.1 .... . ....... I ............... , ••••••••• II ••••• I ............. ••• .. PRODUCTS by 30 per cent, stocks on hand on May 31, were 50 per cent less than a year ago. Crude oil sold at an average price of $.0743 per pound in Mayas compared to $.0728 per pound in April, and cake and meal at $29.33 pel' ton as compared to $26.84. per lon; on the other hand, the average price received fo r hulls declined from $4,.62 per ton in April to $4,.34 per ton in May and linters from $.0266 pel' pound to $.02415 per pound. ·m Activity in the textile industry in this district was well sustained in May and mills generally reported a more favorable outlook. Raw cotton consumed in May at these mills amounted to 3,257 bales as compared to 3,101 bales in May last year, and 2,996 bales in the previous month. Production during the month amounted to 1,367,616 pounds as compared to 1,375,871 pounds in April and 1,382,205 MONTHLY BUSINESS REVIEW 4 pounds in May, 1926. Orders on hand on May 31, were considerably larger than those at the end of April and at the close of May last year. Stocks held on May 31, were greater than on April 30, but below those carried on the same date a year ago. ~1"'11111111111111'''IIIIIIIIIIIIIIIIIIIIIIIIIIt''II'lllllIlIlIlllItlil 11111111111111111111111111111.,111.111111111111 1 8 I~:~~::: :::~,:::::':N~K~T<STI1:;~: ~~;l;g I :: Number pounds cloth pr oduced ......1.S67.616 1.882.206 1.876.871:: [El ICit I I I I f 11 "1111111111111111'111111 f II 11111 1111 I 11111 II 11111 11111 11111 III III lUll 11111 II fllllIllllIllllIlIllllllllllIll!J WHOLESALE TRADE A further seasonal recession in the distribution of merchandise in wholesale channels was noticeable during May. Although the volume for the month was slightly below that for the same month last year, the decline was relatively small and sales of dry goods and groceries were larger than a year ago. Buying appears to be somewhat spotted and retailers are keeping their purchases closely aligned to consumer demand, yet the trade generally seems to be optimistic regarding fall business. Factors which seem to strengthen the present situation are that farmers have inaugurated a more diversified program of farming, are producing the current year's crops at a min imum of expense and are holding their borrowings at both banks and retail establishments, to a low level which in turn will tend to increase the farmers margin of profit. Furthermore, over a large area of the district fair to good feed crops are practically assured and the cotton crop is doing well. While the sales of dry goods at wholesale were 6.4 per cent less than in April, due largely to seasonal influences, they were 2.7 per cent larger than in the corresponding month last year. The volume of distribution during the first five months of the current year has averaged only 3.8 per cent less than that for the same period of 1926. There appears to be a strengthening of sentiment and retailers generally are becoming more optimistic regarding the outlook for fall business. Although retailers in the main are still adhering to the hand-to-mouth policy of buying, some dealers report that forward orders in moderate amounts are beRETAIL Retail distribution during May in the larger cities, as measured by sales of department stores, reflected a gain of 2.5 per cent as compared to the large April volume and was practically the same as in May, 1926. The warm and generally clear weather during the month stimulated the sale of 8 .. ".... ,.1,1,1,.,111,1.11,1,.".".,11,11111,.1 •• ,,1 11 1111.11, . 1111 111111 11111 .11 11 ,.,11.,1 , ••• ,1111111111"" :: ing received. In line with the rising quotations on raw cotton, the prices of cotton goods have strengthened. Following the decline in April the sales of wholesale grocery firms reflected a gain of 5.2 per cent as compared to the previous month and were 2.6 per cent greater than in May, 1926. Sales from January 1 to May 31, were 5.0 per cent less than in the same period last year. Prices were reportea as generally steady. Although some improvement in the farm implement trade was noticeable, business is still considerably below normal. The May sales were 19.4 per cent greater than in the previous month but 31.1 per cent less than a year ago. The demand for harvesting machinery has been fair but the demand for tillage implements continues slow. The fa r:L that this year's crops have been less difficult to cultivaLe than usual has enabled the farmers to get along with a minimum of new implements. A further seasonal decline of 2.6 per cent as compared to the previous month was registered in the May sales of wholesale drug firms. Business appears to be somewhat spotted. Some dealers report that the buying demand is slow, while others report that business is improving. While retailers generally are becoming more optimistic, the hand-to-mouth policy of buying is still in evidence throughout the trade. The volume of distribution of wholesale hardware firms reflected a further decline of 1.9 per cent as compared to the previous month and was 11.1 per cent less than a year ago. While the decline from May last year is rather large, it should be remembered that business was unusuall y active in the latter month. The falling off in sales was general throughout the district. SIIIIIIIIIIIIIIIII ..... I1 . . .. 1.,11'111111111111111 1,11111,.,.,.,,11111111 "1",1,1,1,111,.,.,1,1,,11'11'1,,111111111111 :: CONDITION OF WHOLESALE TRADE DURING MAY, 1927 compared with compared w ith compared w ith May April snme p eriod May April 1926 1927 last year 1926 1927 + 6.2 - 6.0 - 6.8 - 6.6 Groceries ........................ + 2.6 Dry Goods .................... + 2.7 - 6.4 - S.8 - 10.8 .1 Farm Implements ........-S l.l +19.4 - 41.6 + 6.1 - 4.4 Hardware ......................- 11.1 - 1.9 - 2.7 - 8.8 - 4.6 § Drugs ............................- 1.8 - 2.6 - 6.3 - 8.8 +.9';' 0,1111,.,.,.11111,.,11.,11.1111111111111111111,111111111111111.,111111111111 •• 11.,.,I I IIIIIII IIII .,.,.,IIIIIII •• ,llIlll jt!l TRADE seasonable merchandise. Stocks on hand at the end of May were 3.3 per cent less than at the close of April and 9.7 per cent less than a year earlier. The percentage of sales to average stocks from January 1 to May 31, this year was 1l0.9 as compared to " ' 1,.,1,11.1.,. 11 1"""1""1'.,1""""""11.,""'11"""""1'1""""'11111"""'111"'111"'"II.,I •••• I, ••• ,•• ,I,I.I".".,.,I'[!J : Total Sales Ma y. 1927. compa red wit h May. 1926.......................................................... May. 1927. compared with April. 1927........................................................ January 1 to date. compared with same p eriod last year.............................. Credit Sales: May. 1927, compared with Ma y. 1926................................... ....................... May. 1927, compared with April. 1927........................................................ January 1 to da te. compared with s rune period las t year............................ Stock : May. 1927. compared with May, 1926 .......................................................... May. 1927. compared with AP1·iI. 1927 ........................................................ Percentage of sale to average stocks in: May. 1926.............................................................................................................. May. 1927 ............................................................................................................. . Percentage of s ales to avera ge stocks January 1 to May 81 . 1926.............................................................................. January 1. to May 81. 1927............................................................................ Ratio of outstanding orders to last year's purchases...................................... : : percenta:~~:::;~;:e ~;~c1:;~:;~~: ;~:~~s; :_~! § BUSINESS OF DEPARTMENT STORES May I, 1927.......................................................................................................... 8,. ......... ro Da Uas - 4.6 + 2.0 - 6.2 - 4.9 .1 7.7 -16.8 - 6.7 Fort Worth .8 - 6.6 + 6.6 Houston - 2.1 - 1.4 None All Others + 5.0 + 9.5 + .4 +11.4 + 4.8 + 8.8 + 6.1 - 7.0 + 9.5 + 1.0 +4.1 - .S - - - 5.7 2.0 6.5 1.5 4.4 2.6 Total District _ .1 + 2.5 _ .5 +1.8 + 2.0 + 2.0 - 9.7 S.8 20.8 22.6 21.8 22.6 20.6 21.7 28.8 26.5 21.6 28.9 100.1 110.8 2.5 84.9 108.7 .9 10S.8 106.5 1.9 106.6 118.5 2.1 101.2 110.9 2.0 80.5 88.9 42.4 40.6 86.2 : IIIIIII .. ,IIIIIIIII" ... ,IIIIIIIIIIUII I IIIII III II I III1 1 111111 11 111111111111111"'"IIIIII1I1I1IIIIII1IIIIIII t1 II"I1 ... ,.11 .... 11.11111111.11111111111111 ... 1111 ...... ".111111111111., ... 1111 .. 1111.,.,1111I11I.UUfI •• III1.IIIIIIIIII.II .. (!J MONTHLY BUSINESS REVIEW 101.2 during the same periO'd last year, indicating that department stO'res are O'btaining a better rate O'f stO'ck turnO'ver. The vO'lume O'f O'utstanding O'rders cO'ntinued to' decline. The ratiO' O'f O'utstanding O'rders to' last year's purchases at the clO'se O'f May was 2.0 as cO'mpared to' 3.4 at the end O'f April and 3.9 at the clO'se O'f May last year. CO'llectiO'ns reflected a seasO'nal decline. The ratiO' O'f May cO'llectiO'ns to' accO'unts O'utstanding O'n May 1, was 35.2 as cO'mpared to' 37.2 in April and 37.5 in Maya year agO'. FINANCIAL The vO'lume O'f checks charged to' depO'sitO'rs' accO'unts at banks lO'cated in principal cities O'f this district during May reflected a further decline O'f 5.1 per cent as cO'mpared to' the previO'us mO'nth but an increase O'f 6.4 per cent O'ver a year agO'. The May vO'lume amO'unted to' $715,200,000, as (!JIIII111111111111111111111111111111111111111111111111111"11111,11'1111'111111111111.,1111,.1.1,.,11111111111111111111111;) E DEBITS T O' INDIVIDUAL ACCOUNTS (In 'l'housands of Dollnrs) :: ~~~ i_ _ E :: Abilene ...................... $ 10,971 Austin ........................ 18, 292 Benumont .................. 23,780 Corsicnnn .................. 6,224 Dnllas .......................... 181,438 E I Pnso ...................... 80, 299 Fort Worth .............. 88,869 Gnlveston .................. 88,624 Houston ...................... 166,160 Port Arthur ............ 9,962 Roswell .................. .... 2,876 Snn Antonio ............ 46,381 Shreveport ..._............. 86,699 Texnrknna ................ 9,424 Tucson ........................ 8,988 Waco .......................... 14,769 Wichita Falls .......... 26,180 Total, 11 th District.. $716,200 ~~~ I~~c~r $ 10,661 16,671 19,676 6,946 180,898 80,742 78,888 81,04 0 149,708 8,966 2,762 89,949 86,986 10,660 9, 071 12,872 82,461 $672,166 + 4.0 +10.4 +20.9 - 12.1 +.8 - 1.4 +20.6 +24.4 +10.8 +11.0 + 4.6 +16.0 - 8.8 - 11.6 .9 +14.7 -22 .6 + 6.4 A1~~~ I'bc~c~r $ 10,687 20,064 26,207 6,629 203,981 80,388 90,889 40,991 164,490 10,872 3,142 43,019 40,801 10,027 9,289 16,642 29,236 $763,664 + 3.1 - 8.8 - 6.7 - 7.2 - 11.1 .1 - 2.7 - 6.8 + .4 - 4.0 - 8.6 + 7.7 - 12.7 - 6.0 - 2.7 - 6.0 -14.0 _ 6.1:: [!] I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIII[!) 5 cO'mpared to' $?53,554,,000 in April and $672,165,000 in May, 1926. Acceptance After increasing fO'r three cO'nsecutive Market mO'nths the vO'lume O'f O'utstanding acceptances, which were executed by accepting banks in this district, declined in May. The amO'unt O'f these acceptances O'utstanding O'n May 31, amO'unted to' $3,061,039, as against $3,501,811 O'n April 30. Outstanding acceptances executed against impO'rt and eXPO'rt transactiO'ns declined frO'm $957,54,0 O'n April 30, to' $834,957 O'n May 31, and thO'se based O'n the dO'mestic shipmen t and stO'rage O'f gO'O'ds drO'Pped frO'm $2,544,,271 O'n the fO'rmer date to' $2,226,082 O'n the latter date. Condition The investments O'f member banks in selectof Member ed cities reflected a gain O'f $2,628,000 durBanks in ing May but this increase was mO're than Selected O'ffset by a decline O'f $8,591,000 in lO'ans. Cities Investments in United States securities increased $2,262,000 and investments in O'ther stO'cks and bO'nds increased $366,000. LO'ans O'n cO'rpO'rate securities declined $807,000 and cO'mmercial lO'ans were reduced $7,94,6,000 but lO'ans O'n GO'vernment securities rO'se $162,000, While tO'tal lO'ans and investments O'n June 1, were $5,963,000 less than O'n May 4, they were $19,701,000 greater than O'n June 2, 1926. The net demand depO'sits O'f these banks declined $7,037,000 during May but time dePO'sits shO'wed a gain O'f $1,04.6,000. The cO'mbined depO'sits O'f these banks O'n June 1, were $17,553,000 larger than a year agO'. Despite the decline in depO'sits during May, the reserves O'f these banks with the Federal Reserve Bank gained $191,000. Their bills payable and rediscO'unts with the Federal Reserve Bank amO'unted to' $2,825,000 O'n June 1, as compared to' $2,025,000 O'n May 4., and $3,637,000 O'n June 2, 1926. f!I 1]] 111111111111111111111111111111111111111111111111111111111111111111111111111111111'" 11111111111111111111111111111111111111 111 1 1111 11111111111 til til II tll1ll1l1l1l1ll1l1 HIIIIIIIIIII"IIIIIIIIIIIIIIIIIIIIIIIIII IIIII II II til 1111 1111111 1111 111111111111111 1. Number of reporting banks ............................................... ·........ _.................. - ............................ 2. U. S. securities owned........................................ ............... _...................................... _................ .. 8. All other stocks, bonds and securities owned ................................................ _ ........................ •. Loans secured by U. S. Government obligntions ................ ............................................. _..... 6. Loans secured by stocks and bonds other t han U. S. Government oblilrntloIIII ..........._... 6. Ail other lonns ................ _............................ ····..................... _..............•.........._......_...................... 7. Net demand deposits ............ _...._........•........................... - .................. _............................... _......... 8. Time depooits .............................................. - ....................................... _.. _..................................... _... 9. Reserve with Federal Reserve Bank........................._........................ ·.... _.................. - ................ 10. Bills payable and rediscounts with Federal Reserve Bank............ _........ _........ _........ _...... .. 11. Ratio of loans· to net demand deposits ................ ..... ..................................- ............................. .. 6 June 1, 1927 Mny 4, 1927 June 2, 1926 0 0 0 $ 61,309,000 $ 69 ,047,000 $ 52,262,000 27 ,690,000 27,824,000 28,623 ,000 2,900,000 2,788,000 4,040,000 80,224,000 81,081 ,000 72,246,000 229,044,000 286,990,000 229,296,000 273,468,000 280,506,000 264,002,00 0 108,178,000 107,132,000 100,091,000 80,114,000 29,928,000 29,020,000 2,826,000 2,026,000 8,637,000 86% 86% 88% ·Loans Include only items 4. and 6. :: WIIII.IIIIIII.IIIIIIIIIIII ••• IIII'.IIIII •• III ••• II.II.1111 1 1'11111111111111"11111' 1 11111111'1 ' 11'11'111111111 1 11 1 11111 11111 11111 . 111111111111111111111111111111111111111.lllfllll.I'111111111111111111111111111111111111Ifll l lllllll.I.,lllllllllll fl llll'[B Savings Deposits RepO'rts frO'm 90 banks O'f this district which O'perate a savings department reflect an increase of 1.9 per cent in savings depO'sits between April 30, and May 31. Savings depO'sits O'n the I latter date were 10.9 pel' cent greater than O'n May 31, 1926. There were 264,,894, savings accO'unts carried at these banks at the clO'se O'f the mO'nth as against 267,222 O'n April 30, and 238,762 O'n May 31, a year agO'. ~tlllll .. IlIlItIlIlIl .... III .. III .. IIII .......... IIIII ... II.IIIIIIII ... I.IIIIIIIIIIIIII .. 1I 11111111111111111111111111111" .. 1111 1111111111'11111111111111111111111,.,111"11111111111111111111111111111111111111111111111111111 1 111'11111111""'111 1 1IIII I I!l Mny 81, 1927 NR~~~I~: NS~v~:g.Of SAVINGS AS:~~~sO! :a~:~,S::2~ ~ua~~e:a of ASn~~~!s°f I·I~~:;·~·:~·l~~;;:~:: .ot1 D;mT' ' : ifiiJil DIir ':i:illJn ,. ". ,,~, '.~'.'" :: '.'''.m I April SO, 1927 Inc. or NS:;:'~~~O! A&-ri~~Of I fo;l' Inc. or !~f! D:mr· ,!jimr +D:: + ,. ...... ..".," :: I~ ~= 'n~ ~ n'~" L'n l\l . .~;~! l! l AJ!t ..lIlt,1!l~ ,~!l n, ~;! !t! . n ~t~t I GlIIII II : 1IIIIIIIt' •• IIII.II •• IIIIIIIIIIIII II III •• III ••• II.111111111111111111111,. 1 1111 111111111 11 11111111'11'1'.1111IIII'III U IIIIIIIIII , IIIIIIIIII"IIIIIII I .I.I'IIII III III11111111111111,.1.1,111111111111111111111 11 1111111 ' 11111111.1.llllll l lllllfIIIIIIGJ MONTHLY BUSINESS REVIEW 6 m.,I ••• , ••••••••• , •••••• ,I.,III •••••••••••••••••••••• 1, •• ,1, ...................... ,.,111,.,11111, ••••• 1••• 1••• ,., •••••• • ••• ,1111 11 11111111,.'.,11.1 •••• ,.,11.,11111111111111.,11"'1 •• ,111.1.,.,111111,.".,111111""'.,11,., •• ,.'.,." ••••••• ,1111, •• 1111 19 ~~: DISCD~IN:as:ATES Fort Worth Rate eharll'!d eustomers on prime commercial paper ouch ~~s~tt~~~~;~~ff~~ .~:~ : Rate cJn commodity paper secured by warehouse reeeipts, etc. ................................................................................................... Rate on cattle loans .................................. _ ............ _._ .......... _.. 8111.................................................. DEPOSITS OF MEMBER BANKS ~ Banks in eitles Banks in cities Total with a popula- with a popul"" tion of lesa tion of over Time than 16.000 15.000 Demand Time i>emand Time --- I - 698.488 688.076 589,748 584,468 612.884 626.654 685.704 682.891 688.208 650.879 646.4411 682,818 618.186 165.099 166,827 165.299 165.277 165.782 164.972 166.718 161.508 166.9111 176,608 176.180 175.886 178,895 265.618 6.8 Antonio Waco :§:i :5'.7~ ·~6':.~8 :G.~8 6-8 4-8 269.68~ 262.499 257.886 276.780 281.080 287.418 281.721 282.875 290.886 278.998 272.254 265,868 882.870 828.446 827.249 826.577 38 7.054 3~6.474 84 8.291 350.670 850.888 360.494 866.451 360,564 847,278 1 :::_i_ 8 ,0 tural operations, loans to country banks have shown a gradual expansion. While our loans Dn June 15, were $54.0,265 less than on May 31, the reduction was due entirely to the liquidation of borrowings by reserve city banks as the borrowings of country banks continued to increase. There were 157 borrowing banks on May 31, as compared to 137 at the close of April and 264. on May 31, 1926. Due to the increase in bDth loans and open market purchases total bills held increased from $14.,221442.36 on April '30 to' $18,737,749.89 on May 31, dist;'ibuted as follows: Member ba nk collatc"al note.~ secUl'ed by U. S. Govel'nment obligations ..................................................... _................................. $ 2 .86 ~ .7 5 0.00 Rediscounts and all other loans to member ban1es.................... 3.917. 462.33 Open market purchases (Bankers' Acceptances ) .......................... .. 12.·155.537.56 Total bills held .................................................................................. $ 1 8 . 737 . 7 ~9 .8 9 r-- 46.085 44.987 46.628 45.407 45.640 42.998 44.194 41.290 48.791 44.869 46,021 46.624 47.618 120.014 121.89 o 119.671 119.870 120.092 121.974 121.619 120.2IS 128.128 IS1.684 180.10 9 129.21 2 181,277 8'1111.1.1111111111111.11111111111111111111,11.1.11111.1 •• 11 •••• 11 ••••••• 1.11 •••••••• 1111 ••• 111.11.111 ••• ,1 •• 1.1.1 •• II •• Operations of 7-8 6-8 linrc 11111111 ..... 111111 .... 11 ...... ,111111, .... ,111 ............. 1111 ..... 111 ... 11 .............................. 11 .... 1111 ........... 11 .......... 111 .......................... 111111 .... 11111"''' •• 11 .... 011 ...................... 111 .. 11 ........ 111111 .......... 1111 .. 11111 .................... 1 .. 1I.,IIIIItIIIIIIIIIIIIIIIIIIII I G] May 26. 19116_. _ _ . June 28. 1926............ _ July 28. 1926 .._..........Aug. 25. 1926 ...... _ Sept. 22. 1926 ............. _ Oct. 27. 1926 .... _.. ........ Nov. 24. 1926 ............. Dec. 29. 1926 ................ Jan. 26. 1927 ................ Feb. 28. 1927................ Mareh 28. 1927............ Apr il 27. 1927 ............ . M a y 26 , 1927 ................ : '~G:_'8: 5-7 6 Deposits of A further decline was reflected in the vol· Member Banks ume of combined deposits of member banks in this district in May. Total deposits Dn May 25 amounted to $792,031,000 as compared to $808,654.,000 on April 27, and $763,582,000 on May 26, 1926. While the net demand deposits of these banks decreased $19,682,000 during the month, they were $14,,653,000 greater than a year ago. Time del?osits on May 25, were $3,. 059,000 greater than on Apnl 27, and $13,796,000 larger than on May 26, 1926. The heav!est. ~eclin~ in demand deposits occurred at banks located 111 CItIes WIth a popula. tion Df more than 100,000. Total Demand H::::: ;&7 m While loans to member banks increased rna- the Federal Re- terially during May the demand for credit was considerably lighter than a year ago. Loans outstanding on May 31, amounted to $6,282,212 as cDmpared to $4,080,510 o.n April 30, and $10,492,814. on May 31,1926. Due to the mcreased demand for credit in connection with the financing of agricul. serve Bank There was a further reduction of $1,7l4.,700 in the actual circulation of Federal reserve notes during May, having declined from $37,192,295 Dn April 30, to $35,477,595 on May 31. The daily average of reserve deposits of member banks amounted to $59,74.0,881 in Mayas compared to $60,946,4.51 in April, representing a decrease of $1,205,570. FAILURES There was some improvement in the number and indebted· ness of defaultin g firms in the Eleventh District in Mayas compared to the previous month. The number Df failures which amounted to 51, as compared with 75 in April and 91 in May last year, was the smallest number of any month since September, 1926. Liabilities involved in these fail· ures aggregated $1,220,408 as compared to $1,685,229 in April and $802,029 in May, 1926. Although somewhat larger than in the cDrrespDnding month a year ago, the indebtedness of defaulting firms in May was the lowest for the current year. PETROLEUM Although field work declined sharply in May, total pro- ment of drilling activity was noted in practically every field duction of crude oil in this district exceeded that of April in the district including those where production continued by 812,748 barrels and shDwed the first increase in daily to increase. The total number of wells completed in May average production over the previous month since Decem· was 617 of which 382 were producers of oil and 20 were bel'. The total output in May amounted to 20,684,558 bar- gas wells, as compared to 905 in April of which 551 were oil rels as compared to 19,871,810 barrels in April. Curtail· producers and 46 producers of gas. Initial productiDn from (!J"'.,.,I.,I.,., ••• ,".,I ••• ,I',,.,I ••• "., •• II ••• ,I.,., •• ",1""'.',1",111'1 ••• , •• ",., ••• ,."., ••••• 1•••• I••• I', •• , •••••••• III." ••• ,I.I.,li.I.I •• II.I.,III.I., •• , •• 1,.,1"1"'1"'1.,11,'1 ••• ),1'1'1., •• "",1"11.,.1,11,.1, ••• 1•••• ".,1 •• , ••• ",11.'(;] : May Da ily Avv;. 284.866 175.109 40.464 138.745 85,622 April Total Da ily Avg. 6.727,060 224. 235 Inc. 5.106.160 170.206 Inc. 1.256.940 41.898 Dec. 4,121.880 137.896 Inc. 1.112.970 87.099 Dec. Incr ense or Decrease Total Dally Avg. 553.790 Inc. 10.681 822.225 Inc. 4.904 2,875 Dec. 1,444 2~,215 Dec. 3.G51 8.696 Dec. 1.477 North Texas ................................................................ Central-West Texas .... _........................................... _. East-Central Texas ...................._............................... Texas COastal... ..............................._.......................... · Southwe&t Texas .... _.............. _.................................... Tota l 7.280.850 5.428,385 1.254.066 4.146.095 1,104,276 Total, Texas ....................................................... North Louisiana.......................................................... 19.218,670 1.470.888 619.796 47.448 18.826.010 1.646.800 G10.838 Inc. 61.660 Dec. 888.660 76.912 Inc. Dec. 8.968 4,112 To'tal, Dlstrict.............................................. _ ....· 20,684.558 667,244 19.871.810 662.393 Inc. 812.748 Inc. 4.861 = Gl,I ..... I•••••• I•••• ,•••••••••• ,•••••••••••••••••••••• """,111'11""111"".",." •• ,1"',",",',.,.,11'"", •• """"""",.""",',',1,"",1,', •• "•• """"""' ••• ,'.'.'.'1.,.'1"""'.'1'.,.",."""",,, ... ,..... ,.,., ......... ,•••• ,•••• 9 MONTHLY BUSINESS REVIEW f new wells declined from 203,256 barrels in April to 154,066 barrels in May. . Daily average production of crude oil in Texas fields amounted to 610,833 barrels in May which represents an in· crease of 8,963 barrels over that in April. North Texas, Central West, and Gulf Coast fields showed increases in total output, whereas, East Central and Southwest Texas re· ported declines. Drilling activity in all districts with the exception of the Gulf Coast area reflected a noticeable de· crease. Although the biggest decline in the number of com· pletions occurred in North Texas, this area reported the largest increase in production of any field, accounted for by the initial large flush production. The daily uverage production of crude oil in North Louisiana declin ed from 51,560 barrels in April to 47,448 barrels in May. production and orders increased. As in April, production m May was 84 per cent of normal, while shipments of lumber which amounted to 87 per cent of normal production were 4 points greater than in April. Orders received at lhese mills increased from 18 per cent below normal production in April to 15 per eent in May. Unfilled orders for lumber were recorded as 51,779,756 feet at 51 reporting mills on May 31, as against 56,933,4,25 feet on the books of 4,9 mills on April 30. Stocks at the close of May, as at the end of April, were 10 per cent below normal. 0. 11111111111111111111'111111111111111111111111111111111111111.1111111111111 '111~IIII'IIIIIItI"'IIIIIIIIII'IIIIIIII'll l rn Number of reporting mills........................................ ~ :: ~ :: ~;;;~:.T~.;~~f'L:~n~;~TS ~ P~d~ :~; ~~~~~~~:..::::::::::::: : : :::::::::::::::::::::::::::::::::::::::::::::::::::: ii:m:m ~m ~t~~~~1 ~~c~sl :::::::::::~:::::::::::::::::::::::::::::::::::::::::::::::m:m:~~~ ~:~ ::...1 East-Central Texas .... Texas Coastnl ............ Texas W ildcats ............ 7 69 34 6 47 2 0 0 2 2 22 30 306 60.837 620 Total Texas ................ North Lou is iana ........ 667 50 86 0 22 18 7 194 21 162.094 1.972 :: May totals. District.... April totals. Dis trict 617 905 382 561 20 46 215 308 154.066 203.256: § ~ [!I 11I1I1.,I.II.,IIII.IIIII.IIIIIIIII"II.II.,lIllIfllllIlIllllllll lll.IIIIIIIIIIIII.II.,IIIIIII IU.,II I IIII IIIII.II •• ,III[!) (!J "11111"11111111111,".,,'".,11111111111 .. 111111111111 flllIll"II •• II .. II .. 1I 111111111111111111111111111111 1 111111 " ~: § : :: § :: 8 :.~ CRUDE OIL PRICES 51 Unfilled orders. May 31.. .......................................... 51.779.756 feet Normal production ...................................................... 112.424.166 feet mllllllllllllllllllllllll.II.IIIII.II.IIIIIIIII.,IIIIIIIIIIIIIIII.II.,1I1111I11I1IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.[!] I:. . 7 June 8 June 9 Texas1927 1926 § Texas Coastal (Grade .. A .. ) ..........................................$1.20 $1.60: North and Central Texas and North Louisinna :: (52 gr. and above) .................................................. 1.60 • ~ .Prices for June 8. 1926. not available on a compllrab le basis. : (!JI "' •••• I.I.I"II.I.I" •• II •• II ••••• I.'.I •• I IIIII.III1111111'11111'1"",,1111"11111'1'11'111'111111'111 11II"'I IIII'II!) (O il Statistics compiled by "The Oil Weekly." Hous ton. Texas) LUMBER Some improvement was reflected in the operation of pine mills in this district in May. Shipments of lumber exceeded I:J .. Shipments below normal production ........... ......... Actual production below normal... ......................... Orders below normal p,·oduction ........................... Stocks below normal... ................ _........ .. ................... 14 .141.930 17.746.193 17.157.390 32.756.564 feet- 13% feet-16 % feet-150/0 feet-10 % • g u IL~I~lbl~~"~I~~I~i~~i~'~II~~;;;;;ii~·dlllb;lIIth~ " S~~th~;.'~' IIplil~I~IIIA~~~~lil~lti~~:IIII IIUI8 BUILDING Building activity in Mayas measured by the valuation of permits issued at principal cities in this district while greater than in April, was considerably below that in May, 1926. The valuation of permits issued during the month amounted to $9,4<59,4.67, as compared to $8,537,537 in April, and $12,. 833,537 in Maya year ago. In some cities, the volume of new construction appears to be on the increase while in others there is a sharp decline. The combined volume of all reporting cItIes for the first five months of the year was 20.7 per cent less than durinO" the corresponding period of 1926. It will be noted tha~ only three cities have reported a greater volume for the current year than for the previous year, but in these instances the in creases have been large. m""'IIIIIIIII.I ••• II.I.I ••• I •• I •• , •• II •• II •••••• II •• 11""11,1, •••• "" •• 1.,1,1,1,.,1, 1 1111111"11111111.,1111 ' 1.111 1 111 111111 •• 111"11111 1 1111.11111.11111111,.1,1.1111111111,1,.1,.,1111"",1,1111,1.1,1".,11",,111111""""""".,., ..... 1, .1 1 ' 8 : ;: : :: BUILDING PERMITS Amarillo .... _............ Austin ._............... ~eaumont ..........._. Dorpus Christi.... ... alias ................... E I Paso ................ ~ort Worth ......... alveston ....... _.... ~0~8toAn h ·······_······ or rt ur........... ~an Antonio ....... hrevepOrt ... _....... ;ichlta··F~ii~·······'l1otal ........ :.:::::: : ~;' '~ ':~ .:.:':jf:" ::~: 1~:,:n.:~ ~~:.~ ",: ':':~;':;~M':;:."~~::~;" '~:. i.:I~ 46 192 69 871 61 289 247 477 109 262 186 !~ 2.532 96.194 840.664 644.065 738.4 23 68 .515 1.262.138 199.994 1.998.382 182.240 2.986.470 386.820 28 197 61 814 64 346 288 487 147 811 248 1~~'~~~ 1~~ $9.459:467 3.089 82,815 +193.1 116.826 +192.9 217.687 +195.9 1.709.021 _ 57.1 124,521 _ 49.0 1.766.840 _ 28.5 90.208 +121.7 3.011.737 - 38.8 80.041 + 65.2 2,517.289 + 16.6 835.275 ~ ~t~ ~~~.~~~ $12.838:637 - 74 .4 26 .3 37 205 57 800 52 349 207 580 124 865 175 ~~ 2.756 31.742 761,598 851.655 576.703 100.578 1.386. 431 681.963 2.005.829 117.611 906.635 497.774 +208.0 - 65.3 + 88.2 + 27 .2 - 86 .9 9. 0 - 70.7 .6 + 12.4 +228.8 3 - 2~·6 163 923 278 1.717 295 1.688 1.178 2.685 588 1.518 958 164 10.8 440 13,620 m:m = ~4:0 + $8.587 .637 282.766 2.747.585 1.258. 795 8.335.666 314.190 6.106.598 1.827.001 12.821.821 605.303 6.986 .706 1 674 026 '521 '684 234 916 265 1.967 356 1.924 1.842 2.420 641 1.612 185G '215 518.017 774.172 760.995 8.440.232 553.386 8.545.296 822.522 14.826.489 715.488 8.135.779 8 8 1,807:282 981 $46 .1 86 ,919 15.034 4.936:m $57. 008.720 l '6~9,007 - 45.4 +264.9 + 65.4 - 60.5 - 43 .2 - 28.5 +122 .1 - 18.5 - 15.4 - 14.1 = 1i:~ - 68.4 : 20.7 ; [E)111111.1111 ••• I.I.I ••• ,I.III.II.,.I •••• I • • ••• I ••••• I.1 ••••• 1'1"",1.1.,1.,1,.11".".1111111,111111111111111111111111111 11'111 111 11 11111111111, . 11.1111 11.1 •• 1111111 111 11,.11 1.,.1111111.1.11'11,.1.11.1.1.1.'1111 ", .1.1 •• ,II.,.I.I.,IIIII.I . IIIIII •• l l l m CEMENT Shipments of Portland cement from Texas mills reflected ~ substantial gain in May and were the largest of any month In several years. Shipments during the month amounted to 573,000 barrels as compared to 491,000 barrels in April ~nd 4407,000 barrels in the same month last year. Pro~uc, hon of cement was 1.5 per cent less than in the prevlOus tnonth but was 1.8 per cent greater than in Maya year ago. As a result of the excess in shipments ove.r production, stocks on hand at the close of the month declIned and were 26.1 per cent less than a month earlier and 39.0 per cent below stocks on May 31, 1926. Production and shipments of cement for the first five months of 1927 reflected in. creases of 6.6 per cent and 14,.9 per cent, respectively, as compared to the same period in 1926. MONTHLY BUSINESS REVIEW 8 W"~~:~,~"~:":~~''':::,:::''::'~~~~~~;:~~i.~~:;~!.:'';~~:~;";~~~~":~:;"';;~~:;,:::";:~::;;~;:""""'''':;~;''l:__ :: Shipments from Tex". mills................... Stocks at end of month at Texa. mill.... 573.000 314,000 447.000 516,000 +28.2 - 39.0 491,000 425,000 +16.7 -26.1 2,308,000 2,005,000 +14.9 81111111111111111111111111111111.IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIlIlftlllllllllllllllllllll 111111111111111111111111111"1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111110 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board as of June 24, 1927) Industrial production increased in May and continues at a higher level than a year ago, while distribution of commodities was in smaller volume than last year. The general level of wholesale commodity prices has changed but little in the past two months. PRODUCTION Output of manufacturers increased considerably in May, while production of minerals was maintained at the April level. Increased activity was shown in cotton and woolen mills, in meat packing, and in the production of lumber; the output of iron and steel, non-ferrous metals, automobiles, and building materials, after allowance for usual sea· sonal variations, was maintained at practically the same level as in April. Since the latter part of May, however, production of steel and automobiles has declined. The total value of building contracts awarded continued slightly larger in May and in the first two weeks of June than in the corresponding period of last year. Production of winter wheat was estimated by the Department of Agriculture on the basis of June 1, condition at 537,000,000 bushels, or 90,000,000 bushels less than last year. The indicated rye production was placed at 48,600,000 bushels, which is 20 per cent larger than the crop in 1926. TRADE Sales of retail stores in May showed more than the usual seasonal decline from the high April level. Compared with May of last year, department store sales were about 4 per cent smaller, while those of mail order houses were slightly larger. Value of wholesale trade of all leading lines, except groceries and meats, was smaller in May than in April and in the corresponding month of 1926. Inventories of merchandise carried by department stores showed slightly more than the usual seasonal decline in May and at the end of the month were somewhat smaller than a year ago. Stocks of wholesale firms were also smaller than last year. Freight car loadings increased in May by less than the usual seasonal amount, and for the first time in over a year daily average loadings were in smaller volume than in the corresponding month of the preceding year. Loadings of all classes of commodities except livestock, ore, and misceUaneous products were smaller than last year. PRICES The general level of wholesale commodity prices has remained practically unchanged since the middle of April. Prices of grains, cotton, and hides and skins have advanced, but these advances have been offset in the general index by declines in the prices of livestock, wool, silk, metals, and rubber. BANK CREDIT Demand for bank credit to finance trade and industry remained at a constant level between the middle of May and the middle of June, and the growth in the volume of credit extended by member banks in leading cities during the period was in holdings of securities and in loans on stock and bonds. Loans to brokers and dealers in securities by reporting member banks in New York City increased rapidly and on June 15 were in larger volume than at any previous time covered by the reports. At the Federal Reserve Banks there was little net change in the volume of bills and securities between May 25 and June 22, the fluctuations during the period reflecting largely the effects of treasury operations. Discounts for member banks toward the end of June were in about the same volume as a month earlier, while there was a decline in the reserve banks' holdings of acceptances and an increase in their portfolio of United States securities. Conditions in the money market were fairly stable throughout the period, with slight advances in the rates on commercial paper and more recently on bankers' acceptances.
@FedFRASER