The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
E JE JE JE JE JE JE J( JE bE bE JE JE OF THE FEDERAL RESERVE BANK OF DALLAS CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal Reserve Agent (Compiled June 15, 1933) 'E )C ,r )C ,r 'E Dallas, Texas, July 1, 1933 Volume 18, No.5 ~his cop¥ is released for pub- hcation In afternoon papers- June 30 DISTRICT SUMMARY ~:::::''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''"""",,,,,,,,,,,,,,,,,,,,,,,~_. THE SITUATION AT A GLANCE Eleventh Foderal Reserve DiBtriet E Change from April May Bank debits to individual aeeounts (at 17 eities).. . . . .... .. .... . . . .. . .. .. .. . . . ..... Department atore sales. . . . . . . . . . . . . . . . . . . . . . ReServe bank loana to mambor banks at end : of month . .. .. ... ........ .... . .. ... . . ... . E Roserve bank ratio at end of month . . . . . . . . . . =:' BUilding permit valuation at larger centera. . . . CommerCial failures ~nUmber) .. .. .. . .. .. .. .. . : Commereial failur08 liabilities). . .......... .. ~ Oil production (barre a) . . . . . . . . . . . . .. . . . . .. . =:::::.E. 19S5 $428,747,000 ++ $ 5,105,377 53 .9% $ 1,008,342 63 S 1,297,219 29,907,250 - ::t: 6.4 ~ 4.4'1. 41.4% 5 : ~~ points - 3 .1 52 .2 :1= 11 . 0 • : "1111111111'111111111111111111111111111111111'111111111111111111111111111111111111111111111 .. 1111111111111111111111111 ..... A further noticeable expansion in business and industry, stimulated by rising commodity prices and growing public Confidence, occurred in this district during the past month. Department store sales in May reflected a gain of 4 per cent Over the previous month, and were 2 per cent in excess of t?ose a year ago. Wholesale distribution in all reporting hnes was larger than in April; which in some instances was c.ontrary to the usual seasonal trend, and in a majority of hnes it was above that of May, 1932. The enlarged wholesale demand has been brought about by both the increased ~onsumer buying and the disposition of retailers to replenIsh depleted stocks. Forward orders in some lines have reached substantial proportions. Callections reflected a further improvement over the previous month. The demand for Federal reserve bank funds declined betWeen May 15 and June 15, whereas there is usually an increase. Loans to member banks amounted to only $4,446,000 On June 15, as ,compared to $6,067,000 on May 15, and $15,175,000 on the corresponding date in 1932. The decline ~Ul'ing the manth was brought about through liquidati~ns Y both reserve city and country banks. The loans and m'vestments of member banks in selected cities declined betWeen May 10 and June 7. The daily average of combined net demand and time deposits in this district showed little change, the May total being $585,606,000, as compared with $585,834.,000 in April, and $625,594,000 in May, 1932. The continued strong demand for investment outlets was reflected by the heavy subscriptions to the United States Treasury Certificates of Indebtedness and Notes, dated June 15, and ,bearing % per cent and 2% per cent, respectively. Total subscriptions amounted to $122,916,400, against which allotments of $28,013,200 were made. The heavy general rains during the latter part of May greatl y improved agricultural conditions, but there are sections in the western part of the district where conditions are :acute because of lack of moisture. In the drought area, plants are deteriorating rapidly and a portion of th~ crops is still unplanted. Over most of the district moisture is generally ample for the present, and row crops are in fair to good condition. Farmers have made rapid progress with field work, and crops are in a good state of cultivation. Harvesting of small grains is under way, but reports indicaLe that yields are poor. Ranges and livestock have improved since the May rains, and conditions are generally good except in a few areas which ar~ still very dry. Wool and mohair led all other commodities in the general upward price trend of the district's products. Top prices for wool touched the 28-cent level for the first time in several years, and served as a sharp stimulant to business and financial activities throughout the district's sheep-producing areas. Construction activity was well sustained during the past month. The valuation of building permits issued at principal cities during May was practically the same as in the previous month, and was only 5 per cent under a year ago. While the production of cement was moderately smaller than in April, it was greatly in excess of that during the corresponding month of 1932. Shipments were slightly lower than in either comparative period. BUSINESS T/7hoLesale 'l'rade Distribution of merchandise in wholesale channels reflected a noticeable improvement during the past month. Sales in all repOrting lines showed a further gain over the previous ~onth, and in a majority of lines they were larger than In the corresponding month of 1932. The gains over April ranged from 1.5 per cent for farm implements to 16.6 per ~nt for hardware, and in some lines the increase was conary to the usual seasonal trend. The buying of merchandise at both wholesale and retail has been expanding in consequence of rising prices, particularly agricultural commodities, and the strengthening of confidence among the general public. In some sections the marketing of commodities at the higher level of prices has not only created a demand fo], goods but has been reflected in increased payments on both current and carryover indebtedness. The May collections in all reporting lines were either equal to or in excess of those in April. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW The demand for dry goods at wholesale in this district during May reflected a further gain of 14.0 per cent over the previous month, which was contrary to the usual sea· sonal trend, and exceeded that of the corresponding month last year by 34.0 per cent. The increase was general over the district. Retailers, who have been carrying low inven· tories for some time, are having to buy a larger volume of merchandise in response to consumer demand, and are placing substantial forward orders in preparation for fall trade. Prices on finished goods have been advancing, reflecting the higher prices of raw materials. CollecLions showed a further moderate improvement. Although usually showing a decline between April and May, the sales of wholesale drug firms in May this year were 10.6 per cent larger than in the previous month. While there was a decline of 4.8 per cent as compared to the same month in 1932, it was the most favorable comparison reported during the current year. Buying at wholesale is still spotty and quiet in some sections, but reports indicate that demand at retail is picking up. Collections were practically the same as in the previous month. There was a substantial pickup in the wholesale grocery business during the past month. Sales of reporting firms were 7.1 per cent in excess of those in the previous month and were 4.8 per cent larger than in May, 1932. While there are some sections where business is still quiet, sales in most areas of the district are expanding. Prices were reported to be firm to higher. Collections in May were 4.2 per cent larger than in April. For the third consecutive month the sales of reporting wholesale hardware firms have shown a substantial increase over the previous month, and the May total exceeded tha t of the same month in 1932 by a considerable margin. The gain over the previous month was 16.6 per cent, and that over the same month last year was 12.6 per cent. The increased consumer demand for merchandise is becoming fairly general and this is being reflected in a larger volume of wholesale distribution. There was a further increase of 12.5 per cent in collections in Mayas compared to the preceding month. While the May sales of reporting farm implement firms reflected a less than seasonal gain of 1.5 per cent over the previous month, they were 54.4 per cent below those in May last year. The demand for tillage implements has been generally fair to good, but it has been light for harvesting machinery due to the poor small grain crops. Because of the more optimistic feeling among farmers, brought about by the higher level of agricultural prices, consumer demand is showing a gradual improvement. Collections reflected a substantial gain over the previous month . . " " "" "" " "~~~~~;~'~~"~;';;~~~~:;' ;~.:~~.'~:~~' :~;:' ~~~~."."" " """~:~. Percentage of increase or dccrc..o in- Groceries . ..... . . . Dry goods .... .... Farm implomcnts .. Hnrdware .. ...... Drugs .. . ........ . Net Sales Net Sales Stooks Ratio of colleoMny, 1033 Jan. 1 to date May, 1933 tions during May oompared with compared with compared with to aocounts and May, April, same peried May, April, notes outstandinll 1982 lU 38 I.. t ycar 1032 1933 on April 30 + 4.8 + 7.1 - 2.7 + 1.2 +12 .9 67 .6 +34. 0 +14 .0 - 3.0 - 15.9 - . 6 26 .3 - 54 .4 + 1.5 - 39.4 + .6 + 1.8 2.9 + 12 .6 :j:16.6 - 8.0 - 16.6 - 3.1 34 .0 - 4.8 10.6 - 14 .7 - 16 .2 - 5.3 34 .3 S ::: :. E " filll l llllllllll lll .. I I IIII II IIII IIII II I I ........ I I I II IIIIIIII I ... III IIIIIIIIII .. IIIIII I II . 111 111111111111 11 11111111 1111 11';' Retail Trade The sustained consumer demand for mer· chandise in retail channels following the Easter buying season was evidenced by a furt her increase in the sales volume of department stores in leading cities of the Eleventh District. A significant feature was the increase in sales over the corresponding month of the previous year, this being the first recorded in three years. The dollar volume of sales during May was 4.4, per cent greater than in April and exceeded that in May, 1932, by 1.8 per cent. On the other hand, the seasonally adjusted index of depar tment store sales reAected a decline during the past month as a result of May sales being slightly smaller than the average. The index for May was 61.2 p~r cen t of the 1923-25 average, as against 66.8 per cent 1Jl April. Distribution of merchandise during the first five months of the current year was 11.9 per cent less than that fo r the same period last year, this figure being consider' ably better than that shown in April for a similar comparison. Inventories of merchandise on May 31 were slightly lesS than those a month earlier, and continued 14.2 per cent less than on the same date last year. The rate of stock turnover during May showed a further increase over a year ago, and for the first five months of the current year waS 1.16 as against 1.07 in the like period of. 1932. May collections evidenced a further increase over the previous month, and were again in excess of those a year ago. Th e ratio of collections to accounts outstanding on May 1 was 32.4, per cent, as compared with 31.9 per cent in April, and 30.5 per cent in May, 1932. ..... 1111 .... . ...... 111 ............... 111 .... 111 .. .. . .... 11 11 11 111 1111 .. .. 111 ...... 1111 11 ... 11111 .. 111 ........ 11111 ..... 11 11 1111111111111 .. '. 0 '11 11 111111 111 1111 111111 11 11111 .. 11111111111 11 I .. IIIIII I .. I .. II .. I .. I II II .. IIIIIIIIII .. II .. IIIIII .. .. I II .. Ii ;:: 1 _ = _ Total sales (peroentage): May, 1933, oomparedwithMaY 1032 .. .. ...... ...... .. ..... ... .. .. .. .... . ... . . May, 1933, oompared with Apri, 1038 ............. .. .... .......... ...... ... .... i Januaryltodalccomparedwith same periedl..tyenr..... ..... .. ......... .. .... Credit sales (percentage): May, 1933, oompared with MaY 1082 .. .. ...... . .. . .. .... .... . .. ...... .. . ...... May, 1933, compared with Apri, 1033 .. . .. ...... ... .. ...... .... ......... .. ..... I January 1 todateoomparedwithsnmeperiodl.. tyoar . .... . . ............ . . ...... Stooks (percontage): May, 1033, compared with May, 1932... . .... ... ... . . .... .. .. .... .. .. .. .. .... .. May,1083,comparedwithApril,1088 .......... .. ..... .. .. . .. .. ..... . ...... .. .. Stock turnover (rate): Rato ofstock turnover In May, 1932. .. . .. . .... . .. . .. ....... . ............ .... . . . Rate of stock turnover in May, 1933... ......... . . .. .. ............... .. .. .. .. .. . Rate of stock turnover January 1 to May 31,1932..... . .. ... .... . ... ...... .. . ... Rate of stock turnover January 1 to May 31, 1933 . ...... .... .. . ....... .. .. ...... Ratio of May oolleotlons to accounts rocclvable outstanding May 1, 19S3... .. ..... .. .... Indexes of department atere sal08: Unadjusted-May, 1033 .. ..... .. ... .. ......... .. .......... . ................... Adjusted-May, 1933........... .. .... . .. .. ......... . .. .. . .......... . .. . .. . ... Ind,r:a~j~:e~~M~;~~;:3~~~:. .. .. .. .. ................ .. . .. ......... . .... . .. . ... Adjustcd- May, 1933................. .... . .. .. ................ . .... . ....... tal~I":r D For:j:t lw~o:~rth ~ t : i Houston + 0.1 - 2. 6 - 3.6 San Antonio -7.5 - 4.3 - 16 .0 Others +5.7 +10 .8 - 12 .0 Totat D!i:s:trio l - 11 .0 : ! - 13. 3 - 13.4 + 8. 3 + 5.6 - 14.6 5.1 +16. 0 - 12 .7 + 16 .6 + 1.7 0.0 - 3.5 - 2.8 -16.0 - 5.4 +10 .2 -13.1 + 4.8 + 5.7 - 12.2 -18 .8 -3 .4 - 16 .2 .7 + 5.1 +6.1 -15.7 -1.8 - 18 .5 -8.1 -14.2 -1. 1 + II III ~ = BUSINESS OF DEPARTMENT STORES .21 . 27 1.11 1.16 33 .6 .10 .24 .87 .06 23 .8 .27 .31 1.20 1.37 38 .0 .28 .34 1.26 1.40 36.8 58.9 60.7 78 .6 78 .6 72.5 72.5 54.2 51.1 41.8 41.0 61.3 60 .7 51.6 50.6 8U 88.0 .21 .25 .94 1.03 80.7 ~ g : :! • .23 S .28.! 1.07 1. 16 : 82.4! 68.6 61.2 . .... .. . .. •• : 47.5 47.0 .§ : i = 1111 ,11 • • I •• I III. I I I • • • • I.III • • II I I. II IIIIII I I" I ' U .IIII • • 1• •• • • 1111 • •• • 1, • • 1111 •• • 1.1 1111111 . 1• •• • 1.11.1 ••• 1••• 11.1 ••• 1. 1.1 111 .. .... .... . . 1.11 11... . ..... 111 1. 1111. 111. 11 11 1.... . .. . 1. .. .. .. . . ... . . . .. . . ,11111 •• 11 .. . ... . ...... .... . , 11 . .. .. ... ... ...... . , 1 MONTHLY BUSINESS REVIEW Commercial Failures While the number of commercial failures in this district declined slightly in May, there was a substantial increase in the alnOUl1t of indebtedness involved. As compared to the corresponding month of 1932, both the number and liabilities of 8 failures showed a sharp decline. There were 63 defaults in May with a total indebtedness amounting to $1,297,219, as compared with 65 insolvencies in April, involving $852,051, and 95 failures in May, 1932, with aggregate liabilities of $2,330,312. AGRICULTURE Crop Con. ditions While dry weather during the first three weeks of May was unfavorable to growing crops, the heavy general rains in the laLter part of Lhe month and the subsequent fail' weather Were very beneficial, and crops have made rapid gro~h where moisture is plentiful. Nevertheless, there are consIderable areas in West and Northwest Texas, Southern New Mexico, and Southeastern Arizona which are still dry and are urgently in need of rain. Crops generally are in a good state of cultivation. tions have shown a further deterioration due to the lack of moisture. While heavy general rains fell over most of Texas in May and greatly improved pastures, the northern portion of the Panhandle and some areas in West Texas are very dry with ranges and livestock deteriorating. The ranges are also dry in Southern New Mexico and portions of Southeastern Arizona. Stock water in dry sections is get· ting short. In the eastern two·thirds of Texas, moisture is generally ample with some areas reporting ideal conditions. Livestock are in good flesh except in the dry areas. According to the June 1 report of the Department ?f Agriculture, the prospective production of all small gra~n crops is very poor. The indicated produotion of wheat m Texas was 15810000 bushels, whi ch was the same as a lUonth earlier,' and compares with an actual production of 29,580000 bushels in 1932. In the extreme northern part o~ the' High Plains area, the crop is a neal' failure, and Yields over the entire State are low. No change was made in the estimated production for New Mexico, but it was increased somewhat in Oklahoma and Arizona. The Texas Oat crop was rated at 49 pel' cent of normal on June 1, as compared to 55 per cent a month earlier an~ 64. per cent a year ago. While the May rains were beneficI.al to the late crop, they came too late to cause very mu~h Improvement. Poor yields are also indicated for New MeXICO. May weather Was generally favorable to this crop ~n Louisiana. a~d South· eastern Oklahoma, and fair to good YIelds are antICIpated. The condition of ranges in Texas on June 1, as reported by the Department of Agriculture, was 82 per cent of normal, as compared to 79 per cent a month earlier and 86 per cent on the corresponding date last year. Sheep and goat ranges improved 6 points during May, but on June 1 were 4 points lower than a year ago. The condition of cattle and goats in Texas on June 1 was 3 points higher than on May 1, and that of sheep gained 2 points during the period. As compared with a year ago, the June 1 con· dition of cattle and goats was 2 points lower and that of sheep was 3 points lower. The condition of ranges and live. stock in New Mexico and Arizona declined slightly during May, and on Jl:lne 1 was considerably under a year ago. The May rains were generally beneficial to hay crops, as they were abundant in the main producing areas. Adverse Weather earlier in the spring, howe~er, gave the crop a Poor start. While dry weather in the first part. of the m?nth :'etarded the growth of corn, the subsequent rams matena~ly llUproved prospects. In the southern part of Texas the rams calUe too late to prevent the loss of a substantial portion of the crop. Although late in some sections, the cotton cro~ has ~ade gOod growth in all sections of the district except 111 portIOns of West and Northwest Texas where moisture is insufficient. F'armers have prooTessed ra~idly with chopping and culti· \1a~ion, and late I~ports indicate that fields generally are faIrly clean. Cotton is nearing maturity in the extreme ~Outhern part of Texas, and is reaching the blooming stage In Central and East Texas. Conditions in portions of North· \Vest Texas are becoming critical because of dry weather and the lateness of the crop. \ ~he citrus crop was greatly ben~fited by th~ May rains, vh1ch broke a prolonged drought 111 that sectIOn. The D~. Partment of Agriculture reported that the set of the crop IS gOod and that the fruit is sizing up rapidly. The June 1 Condition was 80 per cent of normal for both grapefruit and oranges, whereas a year ago it was 32 pel' cent for grapefruit and 44 per cent for oranges. Livestock Range and livestock conditions over a . large area of the district reflected a no· tlceable improvement during the past month, but some sec- M O'IJements arul Prices The May receipts of cattle, calves, and hogs showed a substantial gain over both the previous month and the correspond. ing month last year. Hog receipts have been running con. siderably above a year ago for the past three months. While the month's arrivals of sheep showed a large gain over April, they were smaller than the marketings of May last year. Prices for practically all classes of cattle reflected an up. ward trend during the past month. At most times the de. mand for available supplies was stronger and quality stock cleared to good advantage. There was also a stronger de. '. . . . . . .'. . . . . .'. . .;~~;';:;;'i6:~;':;:;;;;'. . . . . .'. . . '. . . . . May May 181,187 186,146 ~~.... ........ !~~ i~ Sheep.... . .... .. Chango ovor ttl!! - 4,959 m! April Chango over 134,727 +46,460 '!:." ~i I:. :i"IIIIIIIIIIII"""III1I1II~IIII1II1I"IIIIIIIIII"'''''''III1UIII'III1I1I1I1''"I1'''''''1 IIIIIIIIIIIIIIIIIII.IIIIIIIIE ~"IIII"IIII1I1I"IIIIIIIIIUIIIII"'IIIII""III"'''IIIIII''IIIII''IIIIIIIII .... 1t1i11 .. 1111., .. 111111111 ..... 111 ...... .: COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight> May 1988 Bcor stOC1'8 ••••••••••••••••••••••••••••••• Stooker steers ... .. ............. ......... . Butoher cows ................ . .......... . Stocker oows ........ ... ...... ...... ..... . Calves ................................. . Hogs ... . ........ ..................... .. ~::h;::::::::::::::::::::::::: ::::::::: May 1932 April 1088 ~.OO ~.U ~.U 5.00 3.50 5.00 3.50 S.U 6:76 7:00 4.75 U~ 4.05 3.40 3.05 6.00 5.50 6.50 2.50 2.U 3.U ; ..... 111 .. 111 .. 111111111111111 ...... 11111 .. 1111 ..... 111111 ... 111111 ................ 111 ......... 1I1 .... UIlIlI .. IIU ...... r, MONTHLY BUSINESS REVIEW 4 mand for stockers at higher prices. Hog values rose steadily throughout May, and while there was a slight reaction during the first half of June, the best prices at mid-June were still considerably above the low point in May. The demand for sheep and lambs has been fairly good, with some advance in prices. FINANCE Federal reserve bank loans to member banks reflected a steady decline between May 15 and June 15, the total on the latter date being $4~446,000, as against $6,067,000 thirty days earlier. This recession was accounted for through liquidations by both reserve city and country banks. While some banks have extended their lines to permit financing of farming operations, considerable liquidation has resulted from the marketing of livestock, wool, and mohair. There were only 139 borrowing banks on June 15, as compared to 149 banks on May 15, and 242 banks on June 15, 1932. This bank's holdings of bills purchased in the open market amounted to $335,000 on June 15, as compared to $508,000 a month earlier and $924,,000 a year ago. Investments in United States Government securities were increased $2,501,000 during the past month, and on June 15 were $16,844,000 greater than on the corresponding date in 1932. The reserve deposits of member banks rose from $4,9,605,000 on May 15 to $51,231,000 on June 15, and on the latter date exceeded those of a year ago by $8,515,000. Federal reserve notes in actual circulation reflected a further seasonal decline of $2,665,000 between May 15 and June 15. Operations of the Federal Reserve Bank weeks ending June 7, and "all other" loans (largely cowmercial) dropped $3,248,000 during the same period. Total loans on June 7 were $35,84,7,000 less than on the corresponding date last year. While the time deposits of these banks rose $579,000 between May 10 and June 7, there 'Was a recession of $2,046,000 in their net demand deposits. Combined deposits were $20,993,000 below a year ago. Their borrowings at the Federal Reserve Bank amounted to $965,000 on June 7, as compared to $1,588,000 on May 10, and $4,,102,000 on June 8, 1932. A further contrary to seasonal increase of 5.4 per cent was witnessed during May Accounts in the volume of debits to individual ac' counts at banks in principal cities in this district. The month's total charges amounted to $4,28,747,00 0, as against $4,06,84.7,000 in April, and $452,861,000 in May last year. The reduction from the corresponding month a year ago amounted to only 5.3 per cent, as against 15.0 per cent in April. Debits to IndividlULl ,............,.................................................................................................."''''''''1 DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) '11 .... 11111111111111111111 ...... 111111 ....... ,11.111111111111111111 .. 1111111 .. 111111111111111111111111111111111111111111': CONDITION OF THE FEDERAL RESERVE BANK (In thoU8llnds of doUarII) Total ell8h reserves ..................... .. Discounto for member bankll . •••• ••••••• •.• Other hills discounted .................... . Bills hought In tho o~n market .... ... ....• United Statca securities owned ....•...••••• Other Investmento ......... .. . ....... ... . . Total earning asseto . .............. ...... . Member hank reserve deposito ........... . . Federal resorve notca In actual olroulatlon . •• Foooral resorve hank notca in actual oiroulation ..... . .......................... . June 15, 1933 $51,657 4,446 None a35 46,440 5 51,226 51,231 35,595 975 June 15, 1082 $45,395 15,175 None 924 29,506 5 45,700 42,716 34,786 None Abilene......... Austin.... ...... Bonumont....... Corsicana. ...... Dallas.......... EI Paso.. ....... Fort Worth...... Galveston.. .. .. • Houston......... Port Arthur..... Roswell......... May 15, 1933 $46,881 6,067 None 508 43,980 5 50,519 40,605 38,260 428 ;11111111111111111111111111111111111111111111111111111111111111111'"11111111111111"IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIE A decline in the investments, loans, and deposits was reflected by reports of member banks in selected cities during the four-week period ending June 7. While the investments of these banks in United States Government securities were reduced $769,000 between May 10 and June 7, holdings on the latter date were $10,060,000 greater than a year ago. Investments in other securities on June 7 were $1,324,000 less than four weeks earlier, and $3,570,000 less than on June 8, 1932. Their loans on securities declined $1,181,000 during the four CoruiitJion of Member Banks in Selected Cities ~~~e~:;g~~::::: Texarkana·...... United Statca securities owned .. .......... . AU other stooks, bonds, and securities ownoo. Loans on seourities ....... ..... .......... . AU other lonDS .......................... . Total loaDS .. ...... ...... ... ..... .... ... . Net demand deposits ........ .... ........ . Time depoeito .. .. .... .... ............. .. . Reserve with Federal Reserve Bank ..... . . . Bills payable and rediscounto with Federal Reserve Bank .. ........ ... ........... .. 965 4,102 1,588 ;1111 ...... 11 ..... 1111.,., •••• , .... , •••••• ,111111111 ...... , ........................ IIII ••• II •• I •••• I ........... ,.'.I •• I ••• ~ - 6. 3 + 40 - 17 .5 - 0.1 =~~1:.21 0 ~b:~~~ 4,185 ~ 5 .0 :~ +20 ~ ':' § • ~ =:.: =: :~:. = ~:. The daily average of net demand ap.d time deposits of member banks in thIS district during May, which amounted to $585,606,000, was only $228,000 below the level of t~e previous month. This is a much smaller decrease thap 15 :.111111111111111111111111111111111111111111111'11111111111111111111111.1.111111111.11111 •••••• 1 ••• 111 •••• ,11 ••• ,IIIIIIIIIII : DAILY AVERAGIE ~EPOS~TSf~~IME) MBER BANKS ' (ntousanso oars i:. ~ May 10, 1033 S 92,582 54,536 65,858 148,277 214,135 211,866 123,608 27,480 m~~ 5,072 = 158 . 51 ' April 1033 $ 3,089 17,242 11,260 1,878 110,680 12,887 43,312 14,760 100,861 3,052 1,806 Deposits of Member Banks : Juno 8, 1932 S 81,753 56,782 75,644 160,009 245,553 228,581 126,504 26,922 ~~:m 5,023 May 1082 S 8,630 20,535 12,058 2,213 115,203 16,731 50,134 16,821 102,854 5,022 2,115 ~ Poroentagc chango over month - 2.6 - 11 .5 - .8 +16 .4 + 5.0 +10.2 + 6.0 + 6. 8 + 6.0 + 4.8 + 6.5 Tucson.. .. ...... 7,691 10,610 - 27 .6 6,33a +21.4 = Waco...... ..... 9,066 8,524 + 64 7,877 +15 .1 Wichita FalI8.... 7,610 7,741 - 3:0 ~ ~ ~: . Total....... $428,747 $452,861 - 5.3 $406,847 + 5.4 ·Includ08 the figur08 of two hankllin Texarkana, ArkaDSas, located In the Eighth Distriot. = : :: :\ ••• "",.,It"."., •••• ,•••••••••••••••••••••••••••••••••• 1"""""",.1"1,.1"'11.11,,1 •• 1•••• 11.,1.11 •••••••• 1. 111111 : : June 7, 1033 S 91,813 53,212 64,677 145,029 209,706 209,820 124,272 27,083 May 1033 S 3,884 15,257 11,179 2,167 116,262 14,202 46,895 15,762 107,852 4,142 1,923 Percentago ohange over year + 6 .8 -25.7 - 13 .7 - 2'. 01 + : § May, E Junc, E July, ::••• Aug., E Sopt., Oot., Nov., Dec., Jan., § Foh., :.. M~nrrl"I', E ny, : •• ~.I S :: ~.: _: Comblncd Total Resorve City Banks Country Ban~ ~ :: Not domand Timo Not demand Time Net demand TilD~t.9 : doposito deposits deposito deposito deposito depOSl : 1932 ...... $434,865 $190,720 $212,117 5115,372 $222,748 S7~,m ~ 1932...... 422,504 189,066 207,155 115,634 215,439 7 ,400 = 1032 .. .... 421,727 186,995 200,225 114,505 212,502 72'876 = 3 1032.. .. .. 41a,291 10a2... ... 409,254 187,908 187,040 202,121 201,130 113,037 114,532 211,170 208,124 3'530 • • • 1032...... 413,100 180,716 200,582 116,186 212,608 7 '480 1932...... 421,165 103,246 204,361 116,816 216,804 76'801 1032..... . 420,762 192,266 202,013 117,465 217,849 74'192 103a . . .... 416,655 194,407 201,437 110,215 215,218 7~'050 1033.. .... 415,200 192,412 199,397 118,756 215,803 7 '810 ~ 2 08a 11033 ........ . . 413,776 188,547 202 ,276 115 ,737 211,600 ~3'535.= 308,576 187,258 10a,431 11a,723 265,14 5 74: 481 1083 .. .... 308,024 187,582 191,847 113,101 200,177 : ••••• III.II.I.II.III •• I ......... IIIII •• ,I ••• , •• II.I. 1......... 11" ~3'loa :~ , ..................... ,., •• 1•••• ", ......... •• II,.JI't. MONTHLY BUSINESS REVIEW Usually reflected at this season, and both the net demand and time deposits of country banks were larger than in April. The comparison with the corresponding month a year ago showed a material improvement, there being a decrease of $39,988,000 in Mayas against a like decline of $50,509,000 in April. 5 in the Eleventh District and outstanding at the close of the month, which amounted to $1,127,701, were $51,545 larger than on April 30, and $463,500 in excess of the volume reported on the last day of May, 1932. Survings Deposits The savings deposits of 138 reporting banks in this district reflected a slight increase during May, but the total on the last day of the month was 4.5 per cent below that of the corresponding date last year. The number of savings depositors at 125 banks totaled 310,151 on May 31, as compared to 310,967 on April 30, and 324,993 on May 31, 1932. Accepto;nce Market Both the domestic and the import and export classification of outstanding acceptances reflected a moderate expansion during May, and the amount of acceptances based on the domestic shipment and storage of goods was noticeably higher than a year ago. Total acceptances executed by banks 1""""."."""...""""""".""""......"""""."""""""""". .""""""".""". ."~~~;~~~"~~;~~~~...""""."..."""""""""""...""""""""..."""""..."". .""""""""""""".,, . ~ ~~~ : ':,~ ;; I:, , §: =:,_ Beaumont ~1!:!h: p o~stth"""""" ' ''''' S or A ~r.. .. .. ......... San ntomo ......... .. . . .. Whreveport................ aco ........ .... .. . ...... ~ichita Falls.............. 11 others................. E Number of reporting banks 3 I 2 8 4 3 3 86" Number of saviags dep09itors 7,945 ~~~ Amount of savin~ dopooliB $ 3,048,132 Number of savings depoeitors 8,340 ~.~ Amount of eavin~s dopoeliB $ 2,980,130 Poreentage ohange ovor yenr in savings depoeiiB + 2.3 ~:~! ~n~ !l~ ~~! ~,li 4,363 21,199 21,840 10,420 5,618 52,875 1,932,322 13,994,299 080 8,970, 6,579,834 2,832,661 22,209,000 4,332 21,804 24820 , 10,096 5,638 56,764 1,718,545 14,496,220 10029003 " 6,446,105 2,291,712 23,331,214 - Amount of savin~ dOJlO8liB $ 3,022,740 ~n~m H:lij +12.4 - 3.6 10 5 . + 2.5 + 1.8 - 4.4 Total ...... ....... .. 138 310,151 $l35,560,247 324,903 $141,901,684 "Only 8 banks in Dallas, 0 in Houston, and 75 in "All others" reported the number of savings depoeitors. E : Number of savings dopoeitors 8,050 4,317 21,166 2 0 1,81 10,312 6,651 63,060 310,067 4.5 1,909,477 14,026,302 8,050,602 6,559,661 2,314,207 22,366,768 Porcentage ohange over month in savings depoeiiB .8 .4 .8 - 1.0 +.4 .1 +1.2 - .2 .3 .4 .8 - .3 $135,479,733 + + + + + + + + .1 ~III.IIIIII ••• IIIIIII.III.I.III. IIII.I.I •• IIIIIIII. I II 111111111111 • • 1. 111111,.1 •• 1111.1 . 11111111.11 1111 11, •• 111 111111111 11 111111111'111 " 1' 1111 """1 '111111111",1 ••• 1.1'1.1'111111111111111'1111111111111111111111111 IIIII'I'I'III'I"'IIIIIII'I'I'IIIIIII~. ~''''II''IIItIIl'''''''"IIII''IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII'''''''IIIfIl'''II''''''1I 111111111 ... 11111111111111111111 ...... 111111111111' .. 11 .... 111111111 ... 111111111 ....... 11 ..... 111111111111111 ..... 111111 ........ 11111111111111111111111 .........; ~ - JUNE DISCOUNT RATES § ;; § Rates chlU'ged oustomors on primo oommoroial paper suoh as is now cligible for ~ I I redisoount under the Fedoral Resorve Aot ... . ....... . ....................... Rata oharged on loans to other hanks scoured by bills receIvable ... ..... . . .... ..... Rata on loans scoured by crime stook exohange or other ourrent oollateral (not including loans placed n other markeiB through correspondent banks): Demand .. .... ......... .. . ... ..... . .. .... .... .... .. ····· .. · · ··· ...... Time ............................................................... Rate oharged on commodity paper sooured by warehouse receipiB, etc ...... ....... . . ~ta on cattle loans .............................. . ......... .... ........ . ..... Provaillng rates: DnIlas EI Paso Fort Worth Houston San Antonio 4-7 5- 6 6-8 5-6 4-8 5-6 5-7 5-6 5-8 6 6 6-8 6-8 8 6-8 6-10 6-10 6-8 6-10 5-7 5-7 5-7 6-10 6-8 6-8 6-8 7-10 4-8 4*7 6-7 WIlCO 6-8 5~ 7- 8 7-8 6 8 P.II',II'U •• ,., I III.,I.,.,IIII I IIIII.,II ••• ,.,II., •• • ,.,.,1111111,.,1111,.,1111111111111111 •• ,11111 1111111111111 1.,11111""""""'.,11111111111111111111111""." ••• ,11111,.,.,111, •• 1111111,.,.,11111111"111,.1, •• ,1, ... 111,.,.,.,11111111",.,.,1,.,.'; INDUSTRY Cottonseed Products The crushings of cottonseed and the production of all products during May at Texas oil mills showed a substantial increase over the previous month, which was unusual as a decline generally occurs at this season. Furthermore, all Operations were again on a level appreciably abov:e . t.he corresponding month of 1932. On the other hand, actIVItIes t all United States mills continued to decline seasonally, ut remained considerably above the 1921-31 average, As COtnpared with May last year, the crushings of seed and the pr.oduction of oil, cake and meal, and hulls at United States Flls reflected increases of fairly large proportions. The arge excess over that of a year ago in the prod uction of Cottonseed oil and hulls at Texas mills during May was SUfficient to offset the declines in earlier months of the cur~ent season, and the total for the ten months exceeded that I~ the same period of the 1931-32 season. All other operat hns at both Texas and United States mills continued to S Ow a decline for the cumulative comparison. Stocks of Cottonseed held on May 31 were much smaller than a month b earlier, and at Texas establishments they were less than a year ago. Inventories of all products were seasonally smaller than a month earlier at both the State's and Nation's mills and with the exception of cake and meal they were sma lIe: than those held on the same date last year. ~ .... IIIII .. I ........ IIIII .... IIII .... IIII .. I .. II.II.II .... IIIII .. IIIIIIIIIIIIII.III1I1 ..... 1 111111111 11 11111111111111 11 .'':: E STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS § : E ':E :: E _::: E,!:::::: Cottoneecd reoelved at mills Co(::;~';~ 'e~h~' ii~~i::·. :: TcxOB United States August 1 to May 31 August 1 to May 31 This senson Last senson This senson Last senson ~:m',~~1 ~',~~~',m 4,484,977 5,517,180 Cottonseed on hand May 31 4,286,077 5,124,789 (tons) ....... .. ........ .... 140,040 188,038 447,804 400,375 Crudo oil produoed (pounds).. . 441,820,230 437,566,0301,337,271,2311,624,387,547 ~~~8~;: Crude oil (pounds). . . ...••... Cake and meal (tons).. .. ..... Hulls (tons). . . . . . . . . . . . . . . • • Linteru (running bales)........ :::: :;: 1:::: 1::::::: 16,614,090 54,146 33,045 44,033 17,322,667 83,080 50,709 74,711 53,557,669 207,175 89,242 174,424 60,490,991 140,548 200,373 270,392 E § : E ,:E E::::,: 1::::::_ ~11 ... III .. II .. III .. II .. II .. II .. I ..... I.II.I.I .. I.I.I.I., .... I.I.III.I'II"I'I'IIIII I I'II"II"II'IIII'IIII"'I'I ' II'III"~. MONTHLY BUSINESS REVIEW 6 Textile Milling A continued buying movement in all stages of textile distribution reached very encouraging proportions during May, reflecting the. strengthened public confidence reported during the past two months. This movement necessitated the cotton textile industry increasing its operations to a point much above the level of recent months. Manufacturing establish· ments consumed a total of 620,909 bales of cotton during May, which was 16.5 per cent above the 1917-29 average, and compared with a consumption of 4,70,685 bales in April, and 332,372 bales in May, 1932. During the ten months of the current season, August through May, domestic consumption of cotton aggregated 4,838,910 bales, as against 4,264,,742 bales in the corresponding] period of the previous season. Inventories of cotton on May 31 were slightly greater than those held a month earlier, but they continued below the volume held on the same date last year. The operations of reporting Texas textile mills also showed marked increases during May. With orders for finished products showing very large increases over both the previous month and the like month of 1932, mills increased working schedules in an effort to maintain production on a fairly close level with demand. As a consequence the consumption of cotton and the production of cloth were greater than in either the previous month or the same month a year ago. Stocks of finished products held on May 31 were less than those a month earlier or a year ago. COTTON CONSUMED AND ON HAND (Bnles) May 1033 E Cotton-growing states: Cotton oonsumed. . . . • .. • .. . On hnnd May 31 inConsuming establishmenl6. Publio storage and oompresses . ... .. .........• United States: Cotton consumed. . ......... On band May 31 inConsuming establishmenia. Publio storago and compresses... . .. ... ..•.. .. May 1032 514,221 287.657 August 1 to May 31 This season Last season 332,372 3,518.450 1,394.607 Stooks, May 31. . . .. . . . . . . . . . 627.674 608,837 I I ~1I"'III'IIII IIII' "I I1II1I1I1I1I1II1I'I'"fllllI"IIIIIIIIII'll lIfl lIlIllllllIIIIIIII'IIIIIIIIIIIIIIIIIIIIIII"III"''''~ : 1::: :. COTTON-GALVEST~~~)TOCK STATEMENT ~~~·~::~e~~i~~~ .. : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : For other foreign ports ....... . . ...... ... ....... ...... . For coastwiso poria . .... . ..... ...... ..... ... .. .. .... . . In oomprcsses and dopoia. . . . ..... ...... . ............. § Total. ...... .... . .. ..... ... ............. : Mi2;~ :~ ~ li~ Mi2~1 1~."~ ~ 1~ ' 596,174 582,887 627,674 I:::.: 608,837 ~ :11111111111'.111111111111111111,1111111111111111111111111111111,.1111111111111'111111'11111111111111"'11111111'1111111";' . . .: . .·. r~:,:~~~ :~;~=;,~i~~ ~~~~:,~:~~;.~ I : . Exports. . ............ ... . ... Stooks, May 31. . . .. ... . ... . . 230,521 07,647 2,250,125 1.526,012 2.587,597 1,254,055 :1 .... 11111111111111111111.11111111111111111111111111 .. 11111.1111.111111 .. 1111 .... IIIIIU .. UUIIUIIIIIUUUUI.,"I1Uur. U ...... • .............. • .............. • .... • .................. • .... • ...... I00 ...... I00 ............ III ......................~ 7,614,500 SEASON'S RECEIPTS. EXPORTS, AND STOOKS OF COTTON AT ALL UNITED STATES PORT8-(Bales) ~"I'IIII'I'IIIIII'III''''I'IIII'I'I'I'II'I'I'IIIIII'II1.,11'.1 •• 111.1 . 1'''111.1'1111111 ••••• 11.111'1.,.1''''''1'I'III'II'~ A better foreign demand for American staple was reflected by heavy cotton movements through the ports of Houston and Galveston during May. Exports were in excess of those a month earlier, and the comparison with the like month (}f 1932 showed a marked increase. The receipts of cotton at both Houston and Galveston were also in greater volume than those a month earlier or a year ago. With exports of cotton continuing in larger volume than receipts, stocks held at the close of May showed a further decline as compared with the previous month, but they remained above those a year ago. :1 ;.1".1.1"1111'1'111111111.1.,1 •• 11111 .1 111111111.1".1 ••••• 1.1 •• 1.1.1 •• 1., •••• 11111,11 • •• 111.1.1.1111.1.1.111 •• 1.,1.,1,1" 1,463,126 Cotton Movements E 1~:ONMOV~ENm ~~I~:' :i;~RT~~;;~~ : . 4.264,742 7.320.977 E 7.154,664 4,838.910 . ·""11 111111111111111111111 11 '1111111111111111111111111111111111111 .. 11111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII! 1.146.660 6.848.842 C20.009 4,037.500 1.104,072 months of the present season, as against 7,897,374 bales in the same period of the previous season. The increase in eXports of cotton during May was due to a general buying movement, as all major importers of American coLton and many small buyers increased their takings considerably, E::. • :. Receipia...... . .. ... .. . . . . . . ...... . . . . .. . ... ...... .. . Elports: United Kingdom. . . . .... .. . . . .. . .. ...• .. .... Frnnce. .. . . . .... .. ...... .... . . ... ....•. .. .. . ~~~~~~y' :::: ::: : :: ::: :: : ...... . . : .... ..• .... .... . . ...... Otbor Europe. . . . .. .... ..... .. . .. ... . .. ..... Jar an ..... ........... . ..................... AI other countries. . . .. . . .. .. . . .. . ... .. . . . . . Total foroiguports. . . . .. .. . . . . .. . . . . . . . . . . . . .. . ... . .. Stooks at all United States ports, May 31. . . . . . .. . ... . . . :::::E::::. August 1 to May 81 This sonson Last SeMon 8,327,285 0,670,736 1,226,510 1,214,083 768,260 424,181 601,422 587,02& 1,580,525 1,430,27 885,440 706,035 1,445,060 2,126,471 506,587 1,407,507 7,112,831 7,807,374 3,004,646 3,285,128 :.1,,11"1.111'11.111'111111111111111111"'1'11111111111111111"'1"""""11,'1111111111,,1,1111111'1,11111111111111 ~ S :: : : ~ 1111 1' i !IIIII,'.II.IIIIIII.IIIIIIII,.,.,.,.,IIIIIIIIIIIIIII,I111,11 •••• 1.1111'.111,.,,11111'.1,1,1,111",1'1111111.IIIII"II.,II'S ~ SPOT COTTON PRICES-(Middling basis) (Cents pcr pound) Now york............................... Now Orleans.... . .... ............ . ....... Dallas.... ............ ... .... . .... ...... Houston... .. .. ...... .. ... .. .. . .... .. . .. Galveston.... .......... ................. May. 1033 High Low 0.35 8.25 0.35 8.00 8.75 7.70 0.26 8.00 9.00 7.00 § Juno 15, 10S8 88 . ° 5 '8 8.46 8.75 8.70 E ! .i i : i ;;111111111,111111,11111111.111111111.1111,11111111,.1.11.111111'111111'1111111111,11111.1111,.1111111,11.,111,.,1 •• ,.111.1' Exports of cotton from all United States ports during May also reflected a contrary to seasonal increase over the previous month, and for the first time since last September shipments were in excess of those in the corresponding month of the previous year. Exports during May totaled 591,64.7 bales, as against 436,450 bales in April, and 500,871 bales in May, 1932. It is significant to note also that May exports of cotton were 53 per cent greater than the average for that month. Shipments during the current season, however, continued below those last season. There were 7,112,831 bales of cotton exported during the first ten Petroleum There was a sizable increase in the amount of crude oil produced in this dis' trict during May, the total for the month amounting to 29,907,250 barrels. This figure compares with 26,800,500 barrels produced in April, and 29,14,6,600 barrels in :MJ1 a year ago. Drilling was generally more active, and ~ number of wells completed in most sections was somewh!l larger than in April. There were 300 new producers re~ ported in May, with an initial yield of 954,855 barrel~, ~s against 266 successful wells completed m the prev1 0 l MONTHLY BUSINESS REVIEW llIonth, their combined flush output amounting to 950,580 barrels. The daily average production of Texas fields during May, which amounted to 901,550 barrels, was 74,350 barrels higher than in the preceding month and 30,226 barrels in excess of May, 1932. Decreases were reported in North Texas and Central West Texas, but these were relatively ~lnall compared with the large gains reported in the East rexas and Gulf Coastal regions. A further decrease of 2,800 barrels was shown in the daily output of North Louisiana ,. and very little change was recorded in that of New rvr eXlco. E 1111111111111111111111111111111111111111111111111111111111 11 11111111111111111'1111111111111IIlltI'UUIII:.:. : : : OIL PRODUCTION-(Barrels) 01 () qlit '" Inorenae or deorense over April. 1933 Total Daily Avg. 45.600 - 4.650 + 110.300 - 2.350 I Mny. 1988 Daily Avg. 93.900 ~orth Texna ....... . .. . 180.800 Eentral Weat Texna ......... . nat Central Texna ........... "'ie:.:M'tI:f.!99' &xna Conatal. . . . . . . . . . . . . . . . 5.699.350 183.850 uth Texna/. .11'tr'1'f1/... . 1.656.20050.200 T + 1.073.350 + 81.700 Total Distriot .......... : CRUDE OIL PRICES Texna Coastal (flat prioe).. . . .. .. .. .. . .. .. . .. .. .. .. .. .. North Texas and North Louisiana (Oat price).... . . . ... .. Js~g:325~30 . JU193~0. i:_~= $1. 00· 1.00· ·Prioe paid for oil. 40 gr. and above. ,. 1 .. 111'11111111111'"11111.1111111111111111111111"1111 ... 1 ....... 111 .......... 111 ...... 11111111111111111"11111111111111; (Oilstatlstiea compiled by The Oil Weekly. Houston. Texna) Cement The production of Portland cement in Texas during May totaled 333,000 bar· rels, which represents a recession of 10.5 per cent from the previous month but a gain of 60.1 per cent over the same month in 1932. Shipments were 7.8 per cent less in May than in April, and were slightly lower than a year ago. Stocks reflected only minor changes. While production for the five months of 1933 was slightly larger than in the like period in 1932, shipments were 2.4. per cent smaller. +20.650 + 1.050 ~ ~:.-il~~M',1I!m 1.119.100 840.100 ':! IIIIIIIIIIII ••• II.I.IIIIIIIIIIII.III.IIIII.IIIIIIIII.1.111.11.1.111 . 1,1 .... 1." •• 111 •••• 1 ••• 1.1.1 •• 1.1 . 1.,.1.1 • • ,1 11.1 •••• ~~ 3 N New Mexioo.. .. ............. orth Louisiana ..... ' " . . . . . . 7 """~ 160 + - 36.100 27.100 .OO'/r!l59~. 31.600 56.900 ~ PRODUCTION. SHIPMENTS. AND STOCKS OF PORTLAND CEMENT (In thousands of barrels) Percentage ehange from January 1 May April through 1032 1933 May3l +60.1 -10.5 1.5S2 .0 - 7.8 1.530 - 2.800 May 1933 Produotion at Texna mills ... . . 3S3 Shipmcnts from Texna mills . .. . 320 Stooks at end of month at ToxllS mills ... ... ... . ... . . . .... . . 678 ~ .............. _ •.t:.... .................................................r. IJj ................................ .1"if..':t.~f!..!.. ....................................................:.~.~ MAY DRILLING RESULTS Percentage ohange from year .3 - 2.4 + - 1.0 + 1.8 ::1111111111111111111111111111111111111111111 .. 1111 .. 11 ...... 11111 .. 11 .. 1.. 1111111.11111 .... 111 .... 1 .. 1111 .... 11 ... 1111 ..... Completions 77 55 125 78 116 Produoers 31 18 113 34 03 Gna Wells • 6 Total Texna.. . . ..... N~~~exi~o.. . . . .. .. ... .. .. .. LoUIsIana.. .. . .. .. 451 4 28 289 14 • 7 .2 10 MAa~ totals. distriet .. . . . . . . . prll totals. distriot......... 483 417 300 266 16 10 167 141 ~orth Texna............... Eentral Weat Texna...... ... Sonat Central Texna.... .. ... uth Texna.. .. .. .. .. .. .. . TexllS COllstal. . . . • . . . . . . . . . N 4 Failurea 42 31 12 40 23 Initial Produotion 3.784 § 8.028. 780.485~. 12.085 136.120 E 148 040.407. : 13.~~~ ~: : ~ 954.855 050.580 11111111111111111"" ' 11111111111111111111111111111111IIIIIIIUIIIIIIIII.I.I.III.IIIIIIIIIIIIIIIIIIIIIIII" I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . ~ IIIIII : : May. 1933 ~ ~ No. =Atn orilla ....... i~ stin ......... aumont .. .. .. nlr Christi . . ~s Paso:::: :::: G It Worth ..... v08ton ...... euston . .... . . rt Arthur ... . :San Antonio . . .. ! Shreveport ... " : \V nco . § \V ichita. 'F~li~: : : : ~ ~ ! : = Total ...... Valuation May. 1932 No. - - ---- - 30 25 S 37.838 08 97 18 60·1 27 87 100 207 45 166 141 20 10 111.655 15.530 7.230 246.714 7.128 256.356 32.264 173.938 6.032 82.190 41.668 32.562 17.237 102 87 36 324 40 127 125 215 48 286 121 27 11 Percentage ohango valuation over year Valuation $ 63.255 200.697 38.278 30.483 187.410 14,013 86.262 72.803 265.405 0.710 80.470 39.018 32.094 2.982 -- ---- -- - - 1.660 $1.008.342 1.529 $1.120.570 - 40.2 - 44.4 - 50.4 - 76.3 + 31.6 - 49.1 +197.2 - 65.7 - 34.5 - 10.1 2.1 + 0.8 + .4 +478.0 ---- 4.7 Building Construction permits issued during May at leading centers in the Eleventh District were in practically the same volume as in the previous ~l1onth, and a much better comparison with the correspondmg month last year was reflected. The valuation totaled ~1,068,34.2, as against $1,070,678 in April, and $1,120,579 m Maya year ago . There .were 1,66~ permits issued during the month, as compared WIth 1,323 In the preceding month ' and 1,529 in the same month in 1932. ;.;~~;~~.;~.~~.;;~ ...................... April. 1033 No. Percentage ohange valuation over month Valuation 17 $ 4.965 123.025 106 64 8.407 35.440 26 145.410 317 0.207 43 93 388.000 20.330 89 182.678 175 0,920 48 77.610 158 22.433 100 30.307 37 0.847 51 ----1.32:1 SI.070.678 +662.1 9.2 84 .7 - 70.6 + 69.7 - 23.3 - 33.9 + 10.0 4.8 - 12.8 + 5.9 + 85.7 + 7.4 +151.7 + - ---- .2 I1 .. " .... IIII" .. IIII ............... " ' ' ' ' ............ , , ' ' ' ' ' ... . Five Months Peroentage ehange 10S3 1032 valuation over period No. Valuation No. Valuation 83 $ 69.214 130 $ 101.410 -03 .8 420 743.149 462 4.207.453 -82.3 380 50.772 443 192.818 -60.0 06 68.023 165 75.273 - 8.4 089.228 1.365 1.640 1.304.471 -28.0 153 85.110 183 120.001 -29.7 411 1.051.879 668 657.606 +59.0 429 168.378 626 311.503 -46.0 862 882.333 1.089 1.678.018 -47.4 184 28.912 205 53.471 -45 .0 693 467.091 1.014 1,030.417 -55.6 492 130.002 017 187.060 -30.8 13S 137.514 178 190.146 -27.7 133 35.U3 77 460.585 -92.4 6.118 $4.856.018 7.222 $10.0B2.272 ---54 .5 :ot111 111111111111111., •• I ••• IIIIII.IIIIII.,1111111111111111111 ••••• 111.1 ••• 1.1 ..... 11.1111111 •• 111111111111111.111111111' •• 11111 11111.11111.1 ••• 1111.,11111111.1.111 •• 1 ...... 1•••• ,.,.,.11111.11111111.1 ............ 1.,.111.1.11, ••• ".1111.1 •••• 1.1.1.1,.,1 ••' MONTHLY BUSINESS REVIEW 8 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board as of June 22. 1988) Industrial activity increased rapidly in May and the early part of June, and there was an advance in the general level of commodity prices. Prices of raw materials traded in on organized exchanges showed wide fluctuations, and a general rapid upward movement, while prices of other commodities as a group showed relatively little increase. PRODUCTION AND EMPLOY. ENT M Volume of industrial production, as measured by the Board's seasonally adjusted index, increased from 67 per cent of the 1923-1925 average in April to 76 per cent in May, as compared with 60 per cent in March, 1933. Operations at steel mills continued to increase in May and .the early part of June, contrary to seasonal tendency, and in the week ending June 24, activity is reported at about 50 per cent of capacity. Output of the automobile industry was larger in May than in April, and according to trade reports has increased further in June, although a decline is usual at this season. Lumber output in May showed a considerable increase from previous low levels. Activity at textile mills increased sharply to a higher level for the season than in any other month since November, 1929, and output of shoe factories in May was larger than in May of any previous year. Employment in manufacturing industries increased considerably between the middle of April and the middle of May, and the Board's index, which is adjusted to allow for seasonal variations, advanced from 58 per cent of the 19231925 average to 61 per cent. Factory pay rolls increased by a larger percentage to about 42 per cent of the 1923-1925 average. Value of construction contracts awarded during May and the first half of June, as reported by the F. W. Dodge Corporation, showed a non-seasonal increase from the extreme low levels prevailing earlier in the year. DISTRIBUTION Freight traffic increased from April to May by more than the seasonal amount, reflecting chiefly larger shipments of miscellaneous freight and merchandise. Department store sales, which had increased substantially from March to April, showed little change in May. WHOLESALE PRICES Wholesale commodity prices, as measured by the weekly index of the Bureau of Labor Statistics, advanced from 60.3 per cent of the 1926 average in the week ending April 15 to 64.5 per cent in the week ending June 17. This increase reo flected a rapid rise in the prices of commodities traded in on organized exchanges, including wheat, cotton, wool, hides, lard, sugar, silk, rubber, and non-ferrous metals, and also in the prices of flour, textiles, and leather; while prices of petroleum were reduced and most other prices showed relatively little change. FOREIGN EXCHANGE The value of the dollar in the exchange market declined by 18 per cent between the middle of April and June 21. O~ l the latter date the noon buying rate on cable transfers f O d the French franc was 4..81 cents as compared with a gal par of 3.92 cents, and the English pound was quoted at $4..1 6 as compared with a rate of $3.41 on April 12. BANK CREDIT A return flow of $156,000,000 of currency from circulation and purchase of $118,000,000 of United States Government securities by the reserve banks placed a considerable volume of reserve funds at the disposal of member banks during the five weeks ending June 21. These funds were used in· part to reduce further the member banks' indebtedness to the reserve banks and the reserve banks' holdings of accept· ances, and in part were added to the member banks' reserve accounts. Loans and investments of member banks in 90 lea~ ing cities increased by $175,000,000, in the four weeks en ing June 14, representing chiefly a growth of security 10~S and other loans at New York City banks. Loans to brok~ls and dealers in securities made by New York City banks ~n creased by $160,000,000 during the period, while securJtJ' loans to other customers declined. Net demand deposits at the reporting banks increased by over $500,000,000 reflecting in part a further growth of bankers' balances, princi,PaIl in New York City. Money rates in the open market continue to decline during the period and in the middle of June were only slightly above the lowest levels of recent years. On Ma), 26 the discount rate of the Federal Reserve Bank of NeW York was reduced from 3 to 2Y2 per cent, and in the follOW~ ing three weeks rates were lowered from 31/2 to 3 per cen an at the Federal Reserve Banks of Chicago, Boston, San FI'h cisco, Philadelphia, St. Louis, and Cleveland. At the ot er Federal Reserve Banks a rate of 3Y2 per cent prevails. a
