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MONTHLY BUSI ESS REVIEW OF THE FEDERAlL RESERVE BANK OF DALlLAS ~ ~ c. C. WALSH Chairman and Federal Reserve Agent CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents nI ~ (Compiled June 15, 1932) ~1C:=::x~~~~~~~~~~~~dl ~urne 17, No.5 Dallas, Texas, July 1, 1932 This copy is r elensed for pub!icntion in nfternoon papers- June 29 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Federal Reserve District ------------------------~--------~-------May 1032 Change from April ------------------------1----------1--------Ba~~ debit.. to individual account.. (at 17 DCllool. ......... .. ......... .. .... . .. .. . .. $452,861,000 - frve bank loans to member banks at end ll~ month .. .... . . .. .......... .. ........ .. BUi~.ve bank ratio at end of month . ... . .... . Co IDg permit valuation at larger centers . . . . CommerCial failures ~nUmber) . .............. . Oilmmercial failures liabilities) ..... . •. .•.... .:::: Production (barre s) ... .... ............. . $ 12,181,724 " 52.0% S 1,120,570 05 $ 2,330,312 20,140,600 - ll~artment Btore sales ................. . . .. . + 5.4% 0.2% 11 .8% 7.0 points + 01.8o/, 15 .0'~ )} + 34.5 + 2.50 ............................... . . A.. general improvement in the condition of agriculture ~h~ livestock followed in the wake of the favorable weather V t •leh prevailed during the past thirty days. The frequent aal ns which covered all sections of the district except limited t teas maintained the top soil in good condition and this, hogether with the good subsoil season already existing will of a Sustaining factor in crop growth during the remainder p the SUmmer. The harvesting of small grains is now in U~dgress and while yields are irregular and considerably not r a year ago, prospects point toward per acre yields ta . ar below the 1919-1928 average. Row crops have made te Pld growth and are generally in good condition. Although o,ports indicate that insects are present in large numbers th.er a considerable area of the district, crop damage from in~s source so far has been slight, yet the presence of the eets presents a potential danger. i ch The demand for merchandise in wholesale and retail faiindels continued at a low level. Department store sales ande to show the usual increase between April and May, were 32 per cent less than in May, 1931. Wholesale dis- tribution, while somewhat spotty, was in smaller volume than in the previous month, and was materially less than a year ago. As merchants continue to follow a hand-tomouth buying policy, purchases are being made in small quantities and for immediate delivery. Collections were in smaller volume than in the previous month. The business mortality rate in this district in May was higher than in either the previous month or the same month last year. While the indebtedness of defaulting firms was larger than in April, it was substantially smaller than in May, 1931. Federal Reserve Bank loans to member banks rose from $11,320,000 on May 15 to $15,175,000 on June 15, and on the latter date were $5,157,000 greater than on that date a year ago. The actual circulation of Federal reserve notes reflected a further slight decline. There was a further recession in the loans, investments, and deposits of member banks in selected cities during the four-week period ending June 8. The combined net demand and time deposits of member banks in this district averaged $625,594,000 during May, as co~pared with $636,34,3,000 during April, and $796,875,000 dur~ng May, 1931. There was a strong response to the June 15 Issues of Treasury Notes and Certificates. Subscriptions in this district amounted to $73,360,800, against which allotments of $24,819,300 were made. . Th~re .wa~ a fux:ther sharp recession in building activity th1s d1strIct dUrIng the past month. The valuation of permits issued at principal cities during May was 62 per cent less than in April, and 77 per cent below the corresponding ~onth of 1931. The production and shipments of cement In May reflected a sharp recession from both the previous month and the same month last year. In BUSINESS A slow demand for merchandise at these comparisons were more favorable than those recorded wholesale in the Eleventh Federal Re- in April. A slight improvement in the business of Borne lllost serve District was in evidence during lines was visible toward the end of May. Merchants generdr u of May. The distribution of groceries, dry goods, and ally are keeping orders in close alignment with consumer salegS Was on a smaller scale than in the previous month; demand, and frequent orders for replacement purposes are fat~ ~f hardware continued at about the same level; and 11a Implements, though remaining considerably below made necessary by the generally low inventories. Stocks of as ~ last year, reflected a decided gain over April. Decreases wholesalers showed further material decreases during the the °tnpared with a year ago ranged from 19.2 per cent in month. In the case of all lines except hardware, May witilllplase of groceries to 47.4 per cent in the case of farm nessed a largely seasonal reduction in the volume of coletnents. With the exception of drugi and dry goods, lections. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) -----------------------------------------------------------2 MONTHLY BUSINESS REVIEW =----------------------------------------------------------------------------------------- Distribution of dry goods at wholesale during May was on a scale 12.7 per cent below that of April, the decrease being larger than is usual at this time of year. Total sales were 43.2 per cent smaller than in ~ay, 1931, ~s compared with a like decline of 34..3 per cent In the AprIl volume. A medium to fair demand was apparent in some portions of the district. Stocks on hand May 31 were 5.4. per cent less than a month earlier, and 27.8 per cent below the same date last year. Collections during May were somewhat smaller than in the preceding month. While a net decrease of 2.5 per cent was reflected' in the volume of groceries sold at wholesale during May, seven of the sixteen reporting firms showed increases and there was a slightly more favorable comparison with the same month last year than was shown in April. During the first five months of the current year, total sales were 20.3 per cent below those of the corresponding period in 1931. Although business was somewhat spotty, it continued slack in most sections. There was a 7.0 per cent decline from the pre· vious month in collections. The distribution of hardware through wholesale chan· nels during May was in approximately the same volume as in the previous month, and t~e decline from the correspond. ing month a year ago was materially smaller than in April. It was indicated that orders were largely for current needs. During the months from January to May, inclusive, aggre· gate sales were 28.5 per cent below those of the same period in 1931. Total collections during the month reflected a gain of 3.0 per cent over April. There was a further material pick·up during May in the business of reporting wholesale farm implement firms. AI· though total sales were 75.9 per cent larger than in April, they fell 47.4 per cent short of the volume reached in May last year. The favorable conditions and brighter outlook for crops and livestock served to create a firmer tone of confi· dence throughout the district. Collections declined appreci· ably, after having increased in April. A further reduction of 4,.7 per cent was in evidence in the demand for drugs at wholesale. Business in some locali· ties reflected an improvement, but merchants are still buyi~~ with much caution and in small lots. Sales during the monl e were 28.1 per cent less than a year ago. Inventories at ~l. close of May reflected their ninth consecutive monthly th et cline. The volume of collections was 6.0 per cent below a of April. CONDITION OF WHOLESALE TRADE DURING MAY, 10S2 Percentage of inorease or dcerease in_ Net Sales Net Sales Stocks Ratio o~ oe~~ May, 10S2 Jan 1 to date May, 10S2 tions durlDg and oompared with compared with oompared with to aooou~r ,ding May April samo period May April notes oU .8' 0 19S1 10S2 last year 1031 10S2 on April 3 Grocerios .. ....... Drygood8 ........ Farmimplcmenta .. Hardware .. .... .. Drugs .... ..... ... - 10 .2 -43 .2 -47.4 -26.3 -28 .1 - 2.5 - 12 .7 +76 .9 - .2 - 4.7 - 20 .3 31.4 53 .4 28. 6 23 .2 -22.0 - 27 .8 - 7.5 - 7.0 - 15 .1 - 3.1 - 6.4 - 3.2 - 2.2 - 6.5 X~f~Jt.'d~~~19~~~~: :::::::::: : : : : : :: : :::::: : ::::::::: : :::::::: : ::::::::: : : Indexes of dopartment atere stooks: X3i~~dtoA~~19§~~~::: : :::::::::: :: : : :::::::::::::: : : : : : ::::: : :::: : ::: : :: :: The record of commercial failures reo ported by R. G. Dun & Company was less favorable in May than in April, and while the rate of mortality was higher than a year ago, the indebtedness of defaulting firms was materially smaller. Commercial Failures 2 '8 1 8' 0 2 ·S 4. 3 The business of department sto~es.~ leading cities of the Eleventh ~strlas showed very little change during ay er compared with the preceding month. Sales averaged 0.2 fan 1 cent greater than in April, which is a smaller increase ~ of usual, and 32 per cent below the corresponding mont ths 1931. The latter comparison, however, was only four· ten As of one per cent larger than that in the previous month. th a result of the small seasonal increase during the past m~nre this bank's seasonally adjusted index of departmenthS ~le sales declined from 70.2 in April to 63.3 in May. reub' mand for men's and boys' wear during the month wa~ s nd stantially better than in April, while that for women s a misses' wear and several accessory items was smaller. than Inventories held on May 31 were 5.8 per cent 1 ess ear those a month earlier and 21.4 per cent below those a Yon' ago. The rate of stock turnover during the current year c tinued less than that last year. Retail Trade Collections during May reflected a decline from ~hose t~ month earlier and a year ago. The ratio of collect10n~nst accounts outstanding on May 1 was 30.5 per cent, as 31.7 per cent in April, and 34.1 per cent in May, 19 . a!t BUSINESS OF DEPARTMENT STORES Totnl SalC1l (Peroentage): May, 10S2, oomparod with May, 1031. ... ... ..... .. ..... .. ....... . ........... . . May, 1032, compared with April, 1032 . ... .. . .... .......... . . .. .... .. .... .. .. . . . January 1 to date compared with same period last year ....... . .. . .. .. ........... . Credit Bolos (Percentage): May, 1032. oompared with May, 1031. ..... ..... . .. ........ ...... . .... . .... .... . May, 1032, oompared with April, 1932 . ...... .. ... . ... . ....... . ... ............ .. January 1 to date compared with samo period last year .. ........ . ..... . . .. ..... .. Stocks (Percentage): May, 1932, eompared with May. lOS 1. .... .... ..... .. ............ ... .... . . . .. .. May, 1032, compared with April, 1032 . ........ .... .. .. .. ...... . ... .. ..... ... .. . Stock Turnover (Rato): Rate of stock turnover In May, 10S1. .. .. ..... ... .... ... ..... . .. .. ....... . ... .. . Rate of stock turnoverin May, 1032 .... . .. .. . . . .. . .. .. .. ........... ..... .. .... . Rate of stock turnover January 1 to May 31, 1031. . .. .. ..... . ........ .. . .... ... . Hato or steck turnover January 1 to May 31, 1932 . ... . . .. .... .... ...... .. . . . ... . Rotio or May ool1ootio08 to acoounts rooeivablc outstanding May I, 1032... •. .... .. . . ... Indexos of department atore sales: 6t·~ Dallna Fort Worth Hou8ton San Antonio Others -32.2 - 7.4 -26.3 -30.6 + 0.0 -27 .8 -30.0 .8 -30.6 - -35 .1 - O.~ - 32.8 -25.3 +17.0 -24.9 -31.e - 10.3 -20.2 -28 .U + 7.4 -26.3 -30 . 0 - 3.6 -33 .7 -33.0 - 0.0 -31.7 -30.0 +13 .1 -27.2 - 13 ,9 -22.3 - 3.6 -41.4 -10 .4 - 20.6 -12.1 -16.3 - 6.7 .22 .18 .00 .36 .30 1. 70 1.43 30.3 .27 .24 1.16 1.02 32.2 - 3.G .2e .21 1.24 1.11 30.3 26.8 .20 .29 1.32 1.27 33.8 67 .6 69 .S 70.2 70 .2 71.0 71.9 61. 7 68.2 50.7 40.7 73 .2 72.6 60 .1 40 .1 41.0 42.3 .85 --- Total Dl8trlcl _32.0 .2 _27 .8 + _32 .0 _ 2.8 _28 .3 _2t.4 _ 6.8 .21 .23 1.28 1.10 30.5 G5 .8 03. 3 55.8 65.2 . . t during There were 95 insolvencies in the Eleventh D1strtC d 10 May, as compared with 82 in the previous month,. anol"ed in the same month last year. Total liabilities .IDApril, amounted to $2,330,312, as against $1,732,916 1D and $3,908,589 in May, 1931. -------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW 3 -------------------------------------------------------------------------------------------------AGRICUL TURE Crop Conditions Weather conditions during the past month were generally favorable throughout most of the district and practically crops showed average or better than average growth. Fer e has been ample rainfall in all sections except portions Northwest Texas and Southwestern New Mexico, and late reports indicate that some rain has fallen recently in those areas. 1!1 ° A. A..ccording to the June 1 report of the Department of Ngnculture the indicated production of wheat in Texas and \Vh~v Mexico showed no change from the previous month b lch Was 31,650,000 bushels for Texas and 1,647,000 43~hels for New Mexico. Last year Texas produced 57,I ,~OO bushels and New Mexico 4,,626,000 bushels. Sub~hanl.lal deterioration occurred in this crop in Oklahoma and b e Indicated production on June 1 was only 32,526,000 9~shels, as compared with an actual production of 74,. 9,000 bushels last year. There was also a slight decline ~n the Arizona crop. The Texas oat crop showed a material llUPdl'ovement during Mayas the result of the beneficial rains an on June 1 the condition was 64 per cent of normal as compared with 56 per cent a month earlier, but it was still COn 'd 19 81 erably below the 86 per cent reported for June 1, L03~ .. There was a slight decline in the condition of oats in lU ~lslana and Oklahoma. The barley and rye crops have \V a e. pOor growth. Harvesting of grain crops is well under ay In Texas. r There has been a substantial improvement in the condilon of tame hay in Texas and Louisiana. Tame hay in peXas on June 1 was rated at 73 per cent of normal as comth red with 65 per cent a month earlier, and in Louisiana \V ere Was a gain of 8 points. Wild hay condition in Texas yas 74, per cent on June 1 as compared with 80 per cent a ite'hr ago. Although the corn crop is still late in some areas, as made good growth over most of the district. alhe ~lanting of cotton has been practically completed in in iectlOns of the district and chopping will be completed n. a I sections except Northwest Texas within a short time. p}p0rts indicate that stands are generally good and that the haants are healthy and are making rapid growth. Farmers bu~e dmade good progress with the cultivation of the crop, Pe' Ue to frequent rains some fields are still grassy. A fa rlod of fair weather would be beneficial in enabling ~mers to bring the fields to a good state of cultivation. of ~~e outlook for huit this year is very poor. The condition 1 e Texas peach crop was 23 per cent of normal on June paan~ the indicated production was 660,000 bushels as comPe re With a harvest of 1,581,000 bushels last year. The tn~r crop Was rated at 25 per cent of normal, with an estibu hdl production of 266,000 bushels as against 4,00,000 ter~ e s. last year. Citrus fruits also showed a further degr~Orah~n with the condition on June 1 as 32 per cent for Itg pefrUlt and 44 per cent for oranges. On that date a year or~ the condition of grapefruit was rated at 73 per cent and anduges at 80 per cent. The "set" of the fruit is irregular tnen ader~ges light. Truck crops showed a marked improveL' turing the month. livestock Range and livestock conditions in the nee! Eleventh Federal Reserve District retion ed a marked improvement during May. With the excepOUt a ~ew limited areas there was heavy rainfall throughrap'dl e dIstrict with the result that range vegetation grew 1 Y and livestock put on considerable flesh. With the u; continuance of rain during the first half of June, reports indicate that most areas have sufficient moisture to insure good pasturage throughout the summer. The Department of Agriculture estimated that cattle ranges in Texas were 86 per cent of normal on June 1, as compared with 80 percent a month ago, and 90 per cent on June 1 last year. All sections shared in the improvement except the "High Plains" area, where the lack of moisture prevented an improvement. Rains have since fallen in some of this territory. The condition of cattle improved 4 points during May, but on June 1 was still 5 points below that a year earlier. The improvement during May was 4 points above the average for ranges and 2 points above the average for cattle. The calf crop is fully average this year and is considerably above the small crop of a year ago. Calves are making good growth in most areas. The condition of sheep and goat ranges in Texas advanced 10 points during May and at 88 per cent on June 1 was only 2 points below a year ago. The Department of Agriculture reports that moisture conditions throughout the Edwards Plateau region are almost ideal and that summer range prospects are very good. The condition of sheep showed an improvement of 4 points during the month and that of goats 6 points. The c lamb crop is - onsiderably smaller than last year and losses have been heavier than usual due largely to the unfavorable weather during the lambing season. The condition of livestock and ranges in most of Arizona and New Mexico showed a considerable improvement during May, but conditions in New Mexico are still considerably under those a year ago. Movements The May receipts of cattle, hogs, and a.nd Prices sheep at the Fort Worth market were moderately smaller than in April. Those of calves reflected an increase. The arrivals of hogs in May wer~ larger than in the corresponding month last year, but receIpts of cattle and sheep reflected a large decline. Market prices on all classes of livestock followed a downward course during May, but there has been some improvement in demand since early June and prices have been stronger. Prices on calves have suffered most in the cattle division. Toward the close of May the best prices on hogs dropped below the $3.00 level but were back to $3.20 at the middle of June. Sheep and lamb prices, after declining during May, held generally steady during the first half of June, and the market for good wethers advanced. FORT WORTH LIVESTOCK RECEIPTS (NumbDr) May Cattle ..... ... ... Calves .......... Hogs ..... ..... . . Sheep ........... 1932 42,508 18,052 24,005 186,140 May 1931 61.442 13,219 20.315 208,561 Change over year 18,984 167 8.000 -112,415 - + April 1982 45.878 11.084 29,442 194,439 Change over month -2.870 +1.968 -5.437 -8,293 COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundred-weight) May Deef Bteers ............. . •.. . .....•.....•. StoDkDr Bteers .......... ... .... .. ..... . ... Dutcher cowe . ....... .................... Stockor cowe .......... . .................. Calves .................................. Hogs ......... . ....... ................ . .. ~:Ce:::::::::::::::::::::::::::::::::: May 1082 S6.25 5.00 3.50 April 1931 $7.50 6.40 4.75 4.50 10.00 7.25 4.90 8.25 1932 $5.85 5.00 4.00 7:00 3. 40 2.25 5.50 7.50 4.05 4.00 7.25 -------------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW --------------------------------------------------------------------------------------------------4 FINANCE The loans of the Federal Reserve Bank to member banks, after remaining fairly steady during the last half of May, showed a noticeable expansion during the first half of June. These loans on June 15 amounted to $15,175,000 as compared with $11,320,000 on May 15, and $10,019,000 on June 15, 1931. The major part of the expansion of $3,856,000 during the month occurred at reserve city banks, but there was some increase in the demand from country banks. At the middle of June there were 242 borrowing banks as compared with 213 a month earlier, and 202 a year ago. This bank's holdings of bills bought in the open market amounted to only $924,,000 on June 15, as compared with $1,421,000 on May 15, and $3,945,000 on June 15 last year. Investments in Government secuntIes showed a decline of $2,126,000 between May 15 and June 15, and on the latter date were $1,643,000 less than a year ago. The reserve deposits of member banks reflected a further decline of $4,,451,000 during the month and at the middle of June were $11,305,000 less than in 1931. Federal reserve notes in actual circulation on June 15 amounted to $34,786,000 as compared with $35,444,000 on May 15, and $26,961,000 on the same date last year. Operations of the Federal Reserve Bank CONDITION OF THE FEDERAL RESERVE BANK (In thousandfl of dollars) June 15, Totol cash reeerves . ..... ... ... ... . ...... . Discounts for member bonla! ..•.•.•• .. •..• . Other bills discounted ......••... ........•• Bills bought in open market .... . .... . ••.• • United States securities owned •......••..•• Other investments ........••..•...•..•...• Total earning nssets .......... ..... ... . . •• Member bank reserve deposits .. . •. . ..... .• Federlll reserve netes In actual olroulatlon ••• 1982 $ 45,305 15,175 None 024 29,696 5 45,700 42,710 34,780 June 15, 1981 $ 44,4&1 10,Olg 6 8,945 31,23g 327 45,630 54,021 ~6,061 May 16. 1932 S 61,2~9 11,320 None 1,421 81,722 6 44,468 47,167 36,444 Continuing the downward trend which is usually in evidence at this season of the year, the daily average of combined net demand and time deposits of member banks in this district during May amounted to $625,594,,000,_ as compared with $636,343,000 in the previous month, and $796,875,000 in the corresponding month last year. Time deposits reflected only a small decline. Deposits of Member Banks DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollors) Combined Totol Resorve City Banks Country Banks Not demand Time Net demand Time Not demand Time deposits deposits depoeits deposits deposits deposits May, June, July, Aug., Sopt., Oot., Nov., Deo., Jan., Feb., Mar., i\pril, May, 1931...... $663,222 1031...... 643,166 1931.. . ... 637,233 1931...... 623,707 1031...... 608,860 1931...... 487,314 1031...... 483970 1031...... 474,936 1982...... 468,172 1982...... 469,110 1982...... 461,667 1932...... 445,050 1932...... 484,865 Condition of Member Banks in Selected Cities $233,653 $267,010 $140.ao2 $208,212 S 03,291 231,880 264,003 130,800 289,092 01,000 226,028 267,244 136,49g 279,989 90,420 222,266 266,684 133,608 268,213 88,608 216,974 242,731 129,116 260,119 86,868 202,624 232,644 119,826 264,770 82,608 203,719 231,919 121,817 262,060 81,902 202,004 226,397 122,674 248,638 70,420 196,782 221,799 118,476 246,373 78,307 196,572 222,116 118,993 246,994 77,579 194,887 221,835 117.389 239,722 77,648 191,203 216,640 115,732 228.401 75,561 190,720 212,117 115,372 222,748 75,367 There was a further substantial decline in the loans, investments, and deposits of member banks in selected cities during the four-week period ending June 8. The investments of these banks totaled $138,535,000 on June 8, which represents a decline of $3,441,000 aa compared with May 11, but an increase of $14,167,000 as compared with June 10, 1931. Loans on securities declined $751,000 between May 11 and June 8, and on the latter date were $16,04.7,000 smaller than a year ago. "All other" 10an9 (largely commercial) totaled $169,909,000 on June 80~~ compared with $173,383,000 on May 11, and $206,186, ks on June 10, 1931. The net demand deposits of these ban reflected a seasonal decline of $6,576,000 during the fourweek period, but time deposits showed a slight increas~ Their combined net demand and time deposits on June f were $60,620,000 less than on the corresponding date °d O 1931. The bills payable and rediscounts of these banks 5tO at $4,102,000 on June 8 as compared with $1,340,000 on May 11, and 3915,000 on June 10 last year. CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (Tn thousands of dollars) ----------------~~~~~~~---------------June 8, United States BCouritiea owned . . . . .. '" ...• All other stooks, bonds, and seourities owned. Loans on seourities ...................... . All otherloans ... ..... ...•.. . .....•..•..• Total loans .... ....... .. .... ...... .....•. Not demand deposits ..• ....... •.. ...... . . Time doposits ........... . ...............• Reserve with Federal Reserve Bank . .... ..• Bills payable and redisoounts with Federal Resorve Bank ..••.....•.•............•• June 10, May 11, 1932 S 81,753 56,782 76,644 169,900 246,663 228,581 126,604 1031 $ 68,342 56,026 01,691 ~6,022 297,877 268,678 147,027 32,527 1932 $ 83,~4 68,342 76,306 173,383 240,778 236,167 126,400 27,770 4,102 015 1,340 206,18~ Largely as a result of seasonal fac~r:~ total charges to individual accounts d~g ing May at banks in seventeen lea et cities in this district declined 5.4 to cent from the previous month. The aggregate amo unte 34$4.52,861,000, as against $478,681,000 in April, and $6 w;s 684,000 in May a year ago. At Austin, the volume 0 larger than in either the preceding month or a year. ag , and at six of the other cities it was higher than in Apnl. Debits to Individual Accounts I DEBITS TO INDIVIDUAL ACCOUNTS (Tn thousands of dollars) __ ----------------~---------------------May Abileno. .• ...... Austin. ..•. .•••• Beaumont.. ...•• Corsicana... •.• • Dollas... •....•• EI Paso... ...•.• Fort Worth .... .. Galveston.. . •.•• Houston. .... ...• Port Arthur . . . .. Roswell.. ..••..• San Antonio..... Shreveport. . • . . . ~~~~~~~.o:::::: W~co.... . ..... . Wichita Falls.... May 1032 $ 3,030 20,636 12,968 2,213 116,203 16,731 50,134 16,821 102,864 6,022 2,116 47,768 24,922 1981 $ 6,723 19,060 19,382 3,482 158,460 26,143 68,387 20,608 166,008 8,001 2,712 70,083 32,306 7,741 -- 10,096 13,082 -$634,684 Ig:m 8,624 1~:m Percontage change over year -3U + 7.8 -33.1 -36.4 -27.3 -36.0 -26.7 -18.4 -34.0 -37. g -22 .0 =3 1•0 . 2 7 -4 2 9 L _ -22 .5 -40 .8 April 1932 $ 4,207 18,621 14,213 2,720 128,270 10,132 65,353 17,618 11a,08~~ 4, 1,90a ~~:m 0 511 8:923 9,837 9200 , Percentage change over IIlcatb -1~.~ +1 8 '8 - 8'~ -1 0 '2 -l a ' 1 + 9'4 - 4'6 - 0'0 "+ 4) +11.1 + 0.3 + 6.0 _22.1 0 +lg. _13.3 -16.9 _ 64 - E:gb th Totat....... $462,861 -28.6 $478,081 0Includes the figures of two bonks in Texarkana, Arkansas, located ill the District. I eviou S A further sharp decline from the pr f ae' month was reflected in the vo~um~i~ diS. ceptances executed by banks 1Il t waS II trict and outstanding at the close of May. There 30614 volume of $664.,201 reported, as compared with $1,5 'The on April 30, and $2,507,163 on May 31 a year ago ' d on major part of the reduction was in acceptan~S bciselined the domestic shipment and storage of goods, whiC~5 I~9 0)1 from $951,084 on the last day of April to $1 , May 31. Acceptance Marlcet ------------------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW 5 -----------------------------------------------------------------------------------------------------------Savings Deposits There was a decrease of only 0.3 per cent during May in the savings deposits of 144 reporting banks in this district. The total amOunt on record May 31 was $143,133,269, as against ~, , , , $143,511,679 on the last day of April, and $172,497,342 at the close of May, 1931. Most of the cities reported only slight declines from the previous month, and several showed perceptible increases. .............................................................................. . SAVINGS DEPOSITS ~o::~mont . . . . . .. ...... ... . Elap'::!'" ....... . ..... ... . Number of Reporting Banks 3" O· F t~ ........ · ........ •• 2 ~o~ston . ... ::::::::: ::::::: 4 11· 2 8· Wieb-.................... . 3 G~lves~~th ............... . S~~A~~~r ............•.• Sh DID .............. . Wroveport ............. .. . AU °ol~~ Falla . ... ....•... , • rs ... ........... . .. 4 4 3· 01· May 31,1031 Number of Amount of Savings Savill~ DepOSits Depositors May 31,1032 Number of Amount of Savings SavinRS Depositors Deposits 0,114 74,277 11,005 34,328 17,530 54.640 4.832 10.561 25.042 10,004 2,800 57,460 4,424 76,047 11,575 35,246 18,018 06,610 4,854 22,480 25,091 10,055 3,782 01,150 $ 2,080,130 25.010,350 3.248,288 11,212,840 10.845,410 30.001,855 1,718,545 14.496,225 10,029,005 5,440,106 2,291,714 24,502,774 Peroentage Change Over Year in Savings Deposits + $ 2,782,755 29,145,260 3,922,546 13.730.547 11,803,888 34,783,036 1,841.623 21,695,151 13,039,964 0,310,826 3,053,422 30,370,825 April 30, Number of Savings Depositors Amount of Savin!\B DepOSits Percentage Change Over Month in Savings Deposits $ 3,005,701 25,478,800 3,134,000 11,183,700 10,843,865 30,518,487 1,807,557 14.585,234 10,313,650 5,400,631 2,295,830 24,783,085 0,100 74,250 10,820 34.456 17,671 54,930 4,520 16,504 24,010 10,278 11,010 57,607 7.1 -12.1 -17 .2 -18 .4 - 8.1 -11 .8 - 0.7 -33.2 -23.1 -13 .8 -24.0 -19 .1 1932 Totai.. ......... 144 314,300 $143,133,200 341,732 $172,407,342 -17 . 0 323,071 $143,511,070 "Oniy 2 banks in Bonumont, 6 in Dallas, 0 in Houston, 7 in San Antonio, 2 in Wiohita Falls, nnd 78 in "Ali olhon" reported Ihe number of savings depositors. JUNE DISCOUNT RATES - 3.7 + 3.0 .5 + + 0.0 .3 + 4.0 .6 - - .6 2.8 .4 .2 .0 - .3 Prevailing rates: -----------------------------------------------~--------~--------~------~------~~------~--------- ~.arged customers on prime oommeroial paper suoh na is now eligible for n t lSeount under the Federal Reserve Aot .................................. . n'~ oharged on lonns to other banks secured by bills receivoblo ..... ... . ......•... a In0n loana scoured by prime stook oxohange or other eurrent oollateral (not oiuding loans plaoed III oth~r markets through oorr88pendent banks): Rat ~i:e~n.~ h ...... ::::::::::::::::::::::::::::::::::::::::::::: :::::::::::: arged on oommodity paper seourod by warehouse reoeipts, ete ...•.....•.•... ~ cattlo loans .. . .... . ......... . ... .. .. .. .............................. . Ra~ 0 DnUna El Pnao Fort Worth Houston San Antonio 4*7 5-6 5-8 5-6 6-8 6-6 5-7 6-6 5-6 6 6-8 5*6 5-7 6-7 5-7 6-7 5-8 6-8 8 5-8 5-10 5-10 5-8 5-10 5-7 5-7 5-7 7-10 5-8 6-8 6-8 6-10 7-8 7-6 6-7 8 Waco INDUSTRY l'eXtile ~4 A downward tendency in the operations 1Y1illing of " 1 e ml'11' th' d' . reportmg textl s 10 IS lstnct th was again in evidence during May. With e ha demand for cotton goods, as measured by orders on tni1d at the close of .the month, sh~wing a fur~er reduction andl operators contInued to curtaIl consumptIOn of cotton fin' hcorrespondingly the production of cloth. Supplies of ed tnolS h products held on May 31 continued above those a nt earlier, but were smaller than on May 31, 1931. agAnother seasonal decline somewhat larger than the averof e Was shown during May in the domestic consumption co~otton, and a further large reduction was evidenced as 332 ~~red with the same month a year ago. There were 9.5' 9 bales of cotton consumed during May, which was bel per cent less than a month earlier, and 28.6 per cent cli~w.May, 1931. As a consequence of the further large dee In the consumption of cotton during May, the total --- COTTON CONSUMED AND ON HAND (Dales) ----------------------------------------May August to May May 1 Cotto . Cot'i;,grolvang states: On ha~JoMnsumed : ........ .. C . ay 31 an~gr.umlDg establishments. 10 storago and com. llni l • ., IlSrCSSes ............ . .. . C""" tates· otton Oon~u O band" med :" . .... . . . n Co '~lay 31 mpugr·umlng establishments. 10 storngo and comprcsses ............. ... 1032 1081 287,655 361,680 31 Thi. Sonson Last Soason 3,520,75a 8,436,955 1,146,675 332,430 4a5,363 900,570 7,148,768 5,080,660 4,260,M4 4,358,180 1,468,380 1,257,616 7,608,604 5,400,017 for the season, August through May, dropped below that in the same period last season. Inventories of cotton in con. suming establishments continued to decline seasonally, but on May 31 were 16.4 per cent larger than a year ago. Cottonseed While operations of cottonseed oil mills in both Texas and the United States con· tinued their seasonal recession during the past month, they were maintained on a higher scale than those in the cOlTesponding month of several preceding years. The receipts and crushings of seed and the production of all products except linters at Texas mills were greater than in any like month since 1927, and at the Nation's mills the output of hulls was the largest for that month in four years with all other activities exceeding those of any similar period during the past decade. Production of linters at the Products STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS TOlna United States August 1 to May 31 August 1 to May 31 This Sonson Last Sonson This Sonson Last Sonson Cottonsood rooolved nt mills (tona) ................... .. 1,026,385 1,238,745 5,518,077 4,650,035 Cottonseed orusbed (tons) .... . 1,456,860 1,236,083 5,123,761 4,650,773 Cottonseed on hand May 31 182,675 (tons) " ................. . 10,365 308,200 45,578 Crude oil produoed (pounds) .. . 437,556,080 864,040,7561,628,687,8411,420,617.501 686,352 Cnke and menl producod (tons) 588,578 2,806,815 2,130,624 Hulls produoed (tena) ... . .... . 421,000 350,510 1,448,004 1,285,785 Linters produoed (running 180,500 bnlcs) ..... . .............. . 102,190 835,701 812,317 Stooks on hand May 31: Crude oil (pounds) . .. ... .. .. . 17,322,667 5,077,606 60,409,001 17,387,852 33,080 42,221 Cake and meal (tons) . . ... ...• 150,105 224,282 50,700 35,187 Hulls (tons) ................ . 201,405 88,096 74,711 58,760 Linters (running bal88) ....... • 270,527 248,728 -------------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW 6 ----------------------------------------------------------------------------------------------- State's mills during the ten months of the current season continued slightly less than in the same period of the previous season, while all other operations at both Texas and American mills showed a further increase. Shipments of cottonseed products during the month were well above production, consequently inventories held on May 31 were considerably smaller than those a month earlier, but stocks of oil, hulls, and linters continued substantially above those a year ago. Another decline of a seasonal nature was witnessed during May in the movements of cotton through the ports of Houston and Galveston. While exports at Houston showed a reduction of 23.4 per cent from May, 1931, this decline was more than offset by a favorable balance at Galveston. The receipts of cotton were considerably above those a year ago at both ports. Stocks showed a further decline from a month earlier, but were still above last year. Cotton Movements Although total fOl"eign exports of domestic cotton during May l"eflected a decline from those a month earlier, the recession was much smaller than usual and total shipments for the month were considerably above those a year ago. Exports aggl"egated 500,871 bales during the month, as against 544,563 bales in April and 335,796 bales in May, 1931. A further increase in exports during the present season over those of the 1930-31 season was l"egistered, takings for the first ten months of the current season being 7,897,374 bales, as compared with 6,245,541 bales in the same period of the pl"evious season. Exports to the United Kingdom and Japan turned noticeably upward during May, while shipments to the majority of other countries declined. COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bales) Receipll . ....... . .......... . Exporte ........... ··· · ····· . Stookt,.;May 31. .... .. ......• May 1032 33,313 113,104 May 1031 21,226 71,321 August 1 to May 31 This Season Last Sca50n 2,304,242 1,537,351 2,083,006 1,200,454 608,837 513,14g r COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) ~~;~::::::: ~::::::::: : ::: Stooks, May 81. .. .. ... ... .. . August 1 to May 31 This Season Last Season 3,150,823 2,823 ,976~ 2,587,597 2,173,7 1,254,955 903, 620 May 1931 14,293 127,443 May 1932 23,125 97,047 SPOT COTTON PRICES-(Middling Basis) (Cents per pound) ----------~~~==~----------June 15, May, 1932 High 5.95 5.89 5.40 5.80 5.85 1932 5.35 5.25 4.85 5.16 6.20 Low 5.80 5.31 4.80 5.15 5.25 Petroleum The production of crude oil in thd Eleventh District during May total~ 29,14.6,600 barrels, as compared with 28,444,529 barrels In the preceding month, and 31,112800 barrels in the co rre· f ' spon d' month 1 year. However, there was a decrease. 0h mg ast 7,938 barrels in daily average output as compared Wit April, the gain in total yield being entirely attributable to vel the longer month. Drilling activity continued at a high .le ; and showed a further substantial increase over Apnl. 0 the 848 new wells completed during the month, 706 were producers having a combined initial output of 4,583,724 barrels. Although most areas in Texas reported increases in their daily output, the material reduction in East Texas was more than sufficient to offset the gains shown in other sections. The net decrease for the State amounted to 11,122 barrels. ro the average during May being 871,324 barrels. Daily R ' duction in New Mexico reflected a further slight declIne. while in North Louisiana there was an appreciable increase. OIL PRODUC'l'ION-(Barrels) --------------~~~~~=:~=:~-------------COTTON-GALVEBTON STOCK STATEMENT (Bales) For othor foreign porte ... .... .............. . ....•..•• . For coastwise ports ..... . .•.. . ..•.... .. ...••....•.. .. . In oomprll88es and depots ...............••............. May 31, 1032 3,000 1,000 21,600 1,000 582,337 May 31, 1031 2,000 8,000 15,500 2,000 490,649 Total • . .•• ..•• ••..••.••••.••.... .. ••.• 608,837 513,14g For Grellt Britain .. . ...... ... •. .. ....•........•.• . ..• For Franco . ...... . ............... . . ..... .... .... ... . May, 1932 Total Daily Avg. North TexM . .. . . . .. ... . .. . .. 3,163,550 102,050 Central West Texas........ ... 6,472,350 208,785 East Central Texas..... .. .... 12,197,200 393,458 Texas Coastal...... . .. ... .•.• 3,496,000 112,803 South Texas. . . . . . . . . . . . . . . . . 1,081,050 54,228 N M Total Texas. . . . . . . . . 27,011,050 ew exloo........... . ..... 1,137,700 North Louisiana... .. ......... 997,850 Total Distriot... .. ... Inorease or Deorenee Ovo April,1932 Total Daily AVI· 871,324 36,700 82,189 940,213 21'040 - 3'376 ++ 1'074 ~ -- +637,676 + 24,220 +140,175 +702,071 29,146,600 _11,122 416 + 3,600 - MAY DRILLING RESULTS SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTB-(Bales) Receipts ....••.... :......... ........... .... .......... Exports: United Kmgdom. ......•..... ... .• ......... . Franco.............. ....•..•. . .... .••... . .. Italy........... . .•.•...• ... ....••••••. .. .•• Germany. . . . . . • • . . . . . . . . . • • • . . . • • . . . . . . . . .. Other Europe....... . ...•. ....... ....... . ... Japan .... ... .. :...... .. . .. .... . ......• . . . .. All other oountrles... . . .. . .. . .. ... . . ...•... .. Total foreign porte. . . . . ... ... .. .. ........ ... Stookt al all United St.tas ports, May 31. .............. August 1 to May 31 This Season Last Season 9,679,736 8,844,737 1,214,983 1,027,159 424,181 000,613 587,027 437,686 1,430,270 1,531,723 706,035 643,126 2,126,471 1,080,802 1,407,507 615,432 7,807,374 6,245,541 3,866,ng 3,285,123 Fail· ures 43 19 21 26 12 Comp10tions 98 63 604 44 32 Producers 52 28 581 17 19 OIlS Wells 3 6 2 1 1 Tetal Texas • .. .•. . New Mexico .... ... ..•.••.. North Louisiana ............ 831 697 13 121 14 6 1 7 May totals, distriot ......... Aprillotals, distriol ......... 848 722 706 686 14 15 128 121 North Toxas ........• .. •.•. Contral West Toxas .•• . .•..• East Central Texas .•.•••••. South Texas .•...... .... ..• Texas Coastal ... . •........ . a a r :1= ~,~~~ +156,920 +317,960 -287,730 +214,098 + 86,428 I 7,938 -- Initial Produotlon 5,603 6,889 4,549,~~ 5, -- 12,74 1 4,678,~~~ 2, -2,660 4,583,~: 4,146, -------------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW 7 -------------------------------------------------------------------------------------------------------shipments aggregated approximately two-thirds of the vol· ume recorded in the same period in 1931. CRUDE OIL PRICES June 10, ~elnsth Coastal (40 gr. and'above) .............. . ..... . .• or TellIS and North Louisiana (40 gr. and above) ••.. . 'Prioe paid ror Toxas Coastal, 35 gr. and above. 1032 $1.00 1.00 June 9, PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT (In thousands oC barrels) 1031 S .65' .37 % ohange from May April May 1032 1932 1031 Produotlon at TellIS mills.. .. . ... . 208 -47. 6 -05.3 Shipments from TOlna mills.. ...... 323 -12.2 -49 .8 StookaatendoCmontbatTeXll8mills 685 - 14.4 - 6.7 (Oilstatistica compiled by 'rhe Oil Weekly, Houston, ToxllS) Cement Activity in the Portland cement industry . in Texas showed a decided recession dur~ng the past month. May production amounted to only 608 ,000 barrels, as against 397,000 barrels in April, and 3~~'000 barrels in May a year ago. Shipments declined to th ,000 barrels, which is 12.2 per cent under the volume of e previous month, and 49.8 per cent less than in the same ~~nth last year. Stocks on hand at the end of May totaled I ,000 barrels, being 14.4 per cent smaller than on the thst day of April, and 6.7 per cent under a year ago. For e first five months of the current year, both production and Jan. through May % ohango 1032 from year 1,527 1,568 -33.1 -33.2 ...................................... .. Building The month of May witnessed a heavy reduction in the valuation of construction permits issued at leading centers in the Eleventh District. The valuation of building permits issued amounted to $1,120,579, which is 61.8 per cent below the volume of the preceding month, and 76.6 per cent less than in May last year. From January 1 to May 31 of the current year, the value of permits aggregated $10,662,272, as against $19,571,215 in the like period of 1931. BmLDING PERMITS May, 1032 - No. Am ~:illo .. .. .. . Aus In ........ . Dca umont .. .... Cor )U9 Christi.. ...... ... arth·.::: : anI veston ...... aoutton ........ P or San lrthur .... ntonio .. .. Shrovaport ..... Wn00. Wie hita 'F~li8: : : 'rotal. ..... Valuation May, 1031 No. ----- - - 30 S 68,255 102 200,607 38,278 87 30,483 36 187,410 324 40 14,013 86,262 127 72,803 125 215 265,405 6,710 48 80,479 236 121 30,Q18 27 32,604 2,082 11 Porooatago Change Valuatioa Over Year Vnluation 38 $ 293,375 153,441 115 110 346,056 77,059 60 332 348,808 06,042 54 241 042,323 133 186,476 777,000 307 51 ,978 38 205 116,165 187 67,411 29 1,323,785 6,774 5 - - ----- ---- - - 1,529 $1,120,579 1,863 $4,789,003 - 78.4 +30 .8 -80.0 -60.7 -46.3 -85. 6 -90.8 -60.9 -05.8 -87.1 -30.7 -42.1 -97.5 -56.0 April, 1032 No. Five Months Poreenta~e Valuation Change Valuat.on Over Montb 27 $ 33,770 91 1,467,566 38,007 85 6,377 34 468,449 200 16,773 47 134,552 141 60,074 141 360,138 230 18,602 67 254,497 212 48,432 126 16,980 33 7,000 17 + 87.3 - 86.3 1.8 +378.0 - 60.0 - 11.2 - 35.0 + 10.5 - 26.3 - 64 . 1 - 68 .4 - 10.4 + 02.5 - 57.4 - ----- - - ----- -----1,549 $2,032,197 - 61.8 -76.6 1032 No. Valuation 1931 No. Valuation 130 $ 191,410 462 4,207,453 443 102,818 165 75,278 1,365 1,304,471 183 120,001 668 657,606 626 311,563 1,089 1,678,018 205 53,471 1,014 1,030,417 617 187,060 178 100,146 77 460,585 237 $ 1,050,010 410 1,175,155 600 747,828 254 227,300 1,674 2,528,855 378 618, 208 1,004 2,888,817 648 770,364 1,637 5,627,258 288 535,124 1,122 1,303,485 736 413,727 141 1,528,736 56 47,150 7,222 $10,662,272 9,270 $19,571,215 Percentage Chango Valuation Ovar Period - 88.4 +258.0 1.8 66 .0 - 48.4 - 80.4 - 72.5 - 60.0 - 70.2 - 00.0 - 20.0 - 64.6 - 87.6 +876.0 - ------ 45.5 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Bonrd Ille Volume of production in basic industries and employ- print at factories decreased further in May, and wholesale bee~es. declined. Foreign withdrawals of gold, which had Pra .In large volume in May and the first half of June, CticaUy stopped after the middle of the month. PRODUCTION AND EMPLOYMENT rvta Production at mines and factories declined further in pro~ an~ the Board's seasonally adjusted index of industrial 1923UChon showed a reduction from 64 per cent of the of -1925 average in April to 61 per cent in May. Output thr;~al Was substantially reduced, particularly in the an· usuayte fields, shipments of iron ore showed less than the clined seasonal increase, production of iron and steel defurth ' and . activity at textile mills and shoe factories was crea e~ curtailed. In the automobile industry output inthe :te considerably. In the first part of June activity in furth eel an? cotton industries was reported to have declined er, whlle output of automobiles continued at about the 118 of June 22, 1982) same rate as in the latter part of May. Further reductions in employment and earnings of factory workers accompanied the smaller volume of manufacturing output in May, particularly in the steel and machinery industries, and in the textile and clothing trades. Employment at automobile plants and in the seasonally active food industries showed an increase. Value of building contracts awarded, according to reports to the F. W. Dodge Corporation, after increasing somewhat in April and May, declined slightly in the first half of June, reflecting chiefly smaller awards for public works and other non-residential building. DISTRIBUTION Railroad freight traffic decreased further in May, the largest reduction being in shipments of coal and miscellaneous freight. Sales of department stores in leading cities, which had increased substantially during April were smaller in May. --------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW 8 =----------------------------------------------------------------------------------------WHOLESALE PRICES Prices of commodities at wholesale were 1.7 per cent lower in May than in April, according to the Bureau of Labor Statistics. There were large decreases in prices of many domestic agricultural products and of hides a.nd textiles. Prices of petroleum products advanced. Dunng the first three weeks of June market quotations for a number of non-agricultural commodities were relatively steady, and prices of sugar, meats, and livestock increased. Prices of wheat, after considerable fluctuations, were at unusually low levels at the beginning of the third week in June. BANK CREDIT Withdrawals of gold from the United States continued through May and the first half of June and the country's stock of monetary gold declined by $435,000,000 between May 4 and June 15. After that date there was no further decline in the total stock of monetary gold, continued g?ld exports representing gold previously earmarked by foreIgn central banks. During the first part of May continued pur· chases of United States Government securities by the R~ serve banks enabled member banks further to reduce the~ discounts. In later weeks, however, funds released throu~d these purchases were absorbed by the demand for go k export, and there was also a decrease in mem?er ban. reserve balances. Loans and investments of reportmg Ille~r ber banks in leading cities, which had declined sh~rpl e earlier in the year, showed wide fluctuations after the Illldd t of May. In the middle of June total loans and investrnen s were larger than a month earlier, the increase in holdings of United States securities being more than sufficient offset a decline in other investments and in loans. Mon e rates in the open market remained at low levels. Rates 10:. prime commercial paper were reduced to a range of 21~ 2% per cent in the second week of June. t;
