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--MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DA l lAS CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal Reserve Agent (Compiled June 15, 1934) Dallas, Texas, July 1, 1934 Volume 19, No.5 =- This copy Is r eleased for pubIicatlon in afternoon papers- July 2 DISTRICT SUMMARY and livestock industries. The continuance of the drouth over a large area in the western half of the district and subnormal rainfall in some other sections have retarded crop growth. Eleventh Federal Reserve District According to the June 1 report of the Department of AgriMay Change from culture, the yields of small grains will be larger than the 1084 April small crop of 1933, but will fall considerably below the ~ debita to individual oecounta lot 17 + 0.7% 1.0% D cltios) .................................. . $530,000,000 average. Feed crops are suffering from the dry weather and + ll~portment storc soles ........... ... , . . ... . . reduced yields are indicated. While the cotton crop has ...."'?rve bonk loons to member bonks at end +182.5% 565,071 R 0 month ................... .... ....... .. made fair to good progr;ss generally, growth has been slow, 61.3% + .2 pointa B~Icdr.ve honk mtio at end of month ... ...... . CUI Ing ~rmit voluntion at larger eenters .•.. $ 2,055,305 plants are small for thiS season, and there are some com+104.2~ - 41.0 18 Commerelal fnllures (number) ............... . - 61.0 plaints of pre-mature blooming. Heavy rains over much of OUmmerolal failures (Habilitioo) ......... .... . $ 165,027 + 7.5 0 34,157,350 --.£!:oduetlon (harrels) .......... . . ... .. . .. . the cotton territory are needed to sustain crop growth. The presence of insects over a wide area is a potential danger to the crop. Livestock ranges have deteriorated sharply and A. sharp decline in the business mortality rate, a sub- stock water is scarce in some sections. Livestock have about st~ntial improvement in merchandise distribution, and a held their own, but are beginning to feel the effects of poor ~al~ in bUilding operations were constructive features ?f t~e pasturage. dUStness and industrial situation in the Eleventh Dlstnct The financial situation reflected no material changes dururing the past month. The number of failures in May was ing the month. The deposits of member banks declined ~ a low level and the indebtedness of defaulting firms was seasonally, the daily average of combined net demand and ~ e SInallest in any month during the past. f?urteen years. time deposits being $708,920,000 in Mayas compared with h.e sales of department stores in larger cIties reflected a $715,94.5,000 in April, and $580,932,000 in May, 1933. \al n of 10 per cent over April, and were 22 per cent larger Member bank borrowings from the Federal Reserve Bank an. in May last year. Wholesale distribution ,~as sub- increased considerably between May 15 and June 15, hut 1anhally larger than in April and exceeded that m May, continued in small volume. The loans of member banks in 933, by a wide margin even though busines~ i~ the latt.er selected cities reflected a further decline between May 9 and ?tonth Was very active. The valuation of bUlldmg perml:s June 13, but their investments increased slightly. While lhsue~ at principal cities in May was approximately dou~ e Federal reserve currency in actual circulation reflected a t at In either the previous month or the correspondll~g further slight seasonal decline between May 15 and June 15, onth of 1933 Debits to individual accounts at banks m the figure on the latter date was well above that on the eading centers' were slightly above those in April, and 24 corresponding date last year. Subscriptions to the United Per Cent in excess of those in May last year. States Treasury bonds and notes, bearing 3 per cent and 2718 per cent, respectively, dated June 15, totaled $344,159,450, h Tempering to some extent the favorable business ~ituation aVe been the untoward developments in the agncultural against which allotments of $48,628,700 were made. THE SITUATION AT A GLANCE !t r BUSINESS ~hol 'I' esale AI' genera Improvement I'n business at wholesale in the Eleventh Fe?eral ReWh. serve District occurred durmg May. lIe the only reporting line which usually show.s an ~x pansion in this month is farm implements, substantIal .gams ~Il all lines were registered in May this year. Sales contm~ed ~Il larger volume than a year ago, the increases rangmg {Om 13.0 per cent in the case of groceries to 16~.7 per cent 11 the case of farm implements. This was particularly entade couraging in view of the active business in May last year. Reports from various quarters indicate a strengthening of sentiment in both wholesale and retail channels. Stocks on the last day of May were materially smaller than on April 30 in the case of all lines except one. Total collections during May exceeded those of the previous ~onth in. the case of groceries, dry goods, and hardware, :whlle declInes were reflected in the case of drugs and farm Implements. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) II' I MONTHLY BUSINESS REVIEW 2 ------------------------------------------------~~~~~~==~~~~----------------------------------- While the distribution of groceries at wholesale usually continues with little change from April to May, a material expansion was registered in this district last month. Increases of 9.3 per cent and 13.0 per cent, respectively, were reflected in the business of reporting firms as compared with the preceding month and with May, 1933. The latter comparison was more favorable than in April. Stocks on hand at the close of May were 5.3 per cent smaller than a month earlier. Collections reflected a slight gain over the previous month. An increase of 19.9 per cent, seasonal in character, was recorded in the distribution of farm implements through wholesale channels during May. Sales during the month were 168.7 per cent greater than a year ago. Despite the prevalence of dry weather over a large portion of the Eleventh District an undertone of confidence continues to exist. No material change in the prices of farm implements was reported in May. The month's collections were 25.4 per cent less than those in April. The business of wholesale dry goods firms in this district during May exceeded that of the previous month by 5.7 per cent and was 16.1 per cent above that of the same month last year. Total sales from January 1 to May 31 were 65.9 per cent greater than in the same period in 1933. While inventories reflected a decline of 3.5 per cent from April 30 to May 31, they were still more than twice as large as a year ago. A further increase in the volume of collections was shown in May. Sales of drugs by reporting wholesale firms in this district reflected a counter to seasonal upturn in May amounting to 9.9 per cent and were on a scale approx.imately onefourth larger than a year ago, this being the same comparison as was shown in April. Stocks at the close of the month were 5.9 per cent less than on April 30, though 10.6 per cent above the level of the same date last year. The volume of collections during May showed a small decline from the previous month. The demand for hardware at wholesale during May evidenced a non-seasonal gain of 7.9 per cent, and was 47.5 per cent larger than in the same month last year. While the improvement was general over most of the district, there were a few scattered sections where buying was somewhat curtailed. A further expansion in collections was reflected during the month. CONDITION OF WHOLESALE TRADE DURING MAY, 1984 Percentage of inorcnse or deorcnse inNet Sales Stocks Ratio of cellco, Net Sales May, 19a4 Jan . 1 to date May, 1934 tions during oomparcd with eompared with compared with to accounts Jin g May, April, samc period May, April, notes outs~130 D 1933 1934 last year 1933 1934 on Apn Grocerics ......... + 13.0 + 9.3 + 20.8 + 18.2 - 5.3 77.0 Drygoods ...... .. + 16.1 + 5.7 + 65.9 +104.7 -3 .5 33.2 Farm implements .. +168. 7 +19.9 +224.9 + 11.5 +.9 4.0 Hardware .... . ... + 47 .5 + 7.9 + 62.2 + 2.3 -3.0 53.1 Drugs ............ + 24.8 + 9.9 + 29.7 + 10.6 -5 .9 46.0 Mna Retail Trade The demand for merchandise at depart· ment stores in principal cities of ~e Eleventh District turned upward durtn~ May. Sales reflected an increase over the previous mon~ that was somewhat larger than usually occurs in that mont 1, and they continued in much larger volume than in the co~re· sponding month of 1933. Merchandise distribution ?urtnJ the month averaged 9.7 per cent greater than in Apnl, an 22.0 per cent above that in May last year. This bank's .se sonally adjusted index of department store sales dechne ?uring ;the month from 80. ~ per cent of the 1923·25 ave~agd m Apnl to 73.8 per cent m MliY, but the index remaI11e on a .level ~uch higher than a year ago. Sales o~ meri chandlse durmg the· first five months of the year weIe 31h per cent greater than in the corresponding five mont S . of 1933. d Imentories of merchandise on May 31 reflected a seasonj' decline of 2.4, per cent as compared with those held a mon~l earlier, but they remained 24,.8 per cent greater than on : e same date a year ago. The rate of stock turnover durt~~ the first five months of 1934. was 1.26, as compared WIt 1.15 in the same period last year. Collections of both open and installment accounts evi' denced an increase during May. The ratio of collections to open accounts outstanding on May 1 was 39.5 per .cen~ as against 37.3 per cent in April, a~d 32:4. per cent 111 ~:8 1933. Installment account collectlOns mcreased from 1 per cent in April to 15.1 per cent in May. .---. BUSINESS OF DEPARTMENT STORES Total sales (percentage): May, 1934, oompared with May, 1933 ............... . ....... .. ................ . May, 1934, compared with April, 1934 ... .... .... ...... ....... . ................ . January 1 to dato compared with same period last year ......................... .. Credit sales (percentage): May, 1934, oompared with May, 1933 ......................................... . May, 1934, compared with April, 1934 ... . ..................... . .. . ............ . January 1 to date compared with samo period last year ... , ... ...... • ............. Stooks on hand at end of month (peroentage): May, 1934, oompared with Ma Y 1933 ........ .. ...... .. .. . .................... . May, 1934, compared with Apri i, 1934 ........................................ .. Stook turnover (rate): Rnte ofstook turnover in May, 1933 ..... . ................... . ... . ........... . . . Rntc of stook turnoverin May, 1934 ........... ... ............ . ................ . Rate of stook turnover January 1 to May 31, 1933 ..... .. .. . ................... .. Rntc of stook turnover January 1 to May aI, 1934 ...... . ....................... . Rntio of May oolleotions to open ncoounts receivablo outstanding May 1, 1934 ..... .... . . Rntio of May oolleotions to installment aooeunts roceivable outstanding May 1, 1934 . . . ,. Indexes of department store sales: B~~~i~:~=~piri, l~~t ::: ::: :: :: :::: :::: :::: :::: :: :::::: ::: :: ::::::::: :: ::: 1~i~~=~;rli, l~~t: :::: :::: ::: :::::::: :: :: :::: ::: ::: :: :::: ::: ::: :::: :: ::: Fort Worth +16 .9 +27.0 +22.9 Houston +20.0 + 6.9 +30.0 San Antonio +22.4 + .1 +29.5 Others +15.2 +16.3 +23.4 Total Diatriot +22. 0 + 0.7 +31.5 + 2.2 +27.7 +22.0 +7.4 +a2 . 1 +21.2 - 3.3 +31.7 +16.4 +16.1 +21.7 + 7.1 +41.1 +18.7 +27.0 +24.3 +25.6 - 4.8 +14 .3 - 2.2 +20.1 +1.3 +29 . 1 +1.7 +26.8 - 3 .0 +24.8 _ 2.4 + 1.41 40.2 16.2 .24 .25 .94 .99 a4.0 11.4 .28 .26 1.25 1.27 42.4 43.1 75.6 76.9 77.9 81.8 91. 7 78.0 01. 7 82.1 83 .8 86.5 83.8 90.1 05.1 71.1 61.4 72.6 52.4 55 .2 51.4 53 .6 70.0 71.6 09.3 68.8 48.0 47.1 47.0 45.7 44.5 41.6 44 .9 39 .2 .28 .28 1.17 .34 .33 1.44 1.56 Indexes of department store steeks: B~~~i~:~=~;Ji, l~~t::: :::::::: ::::: :: :: :::::::: ::: ::::::: :::: :::::: ::::: ~~j~:~=~;Jl.l~~t:: :::: :::::::: :::: :::: :::::::: :::::::::::::::::: :: ::::: - Dallas +29.2 6.9 +40.6 .25 .22 1.03 1.05 36.4 19.5 +22 .6 +32.7 .27 .27 1.l6 t.20 30.5 15.1 70.7 75.7 73. 8 80.5 50. 9 58.2 56.3 56. 0 --------------------~~~~~~~~~~~----------------~ MONTHLY BUSINESS REVIEW 3 -----------------------------------------------------------The record of commercial failures in this district durincr May was very favorable. According to fhe report compiled by Dun ~ Bradstreet, Incorporated, only 18 defaults oc?urred durIng the month as aaainst 31 in April, and 63 m May last year. The liabilities ~f insolvent firms declined to $165,927, Commercial Failures which is the lowest amount reported since April, 1920, and compares with $4,25,629 in the preceding month and $1,297,219 in the same month a year ago. The average indebtedness of defaulting firms was reduced from $13,730 in April to $9,218 in May. AGRICUL TURE Farmers throuCYhout this district have made rapid p~ogress with field work during the past six weeks and crops generally are in a good state of cultivation ..On. th~ other hand, sub-normal rainfall over much of the dIstnct m May and the first half of June has had an adverse effect upon Crops and heavy general rains are needed .to prevent CI:OP deterioration. Heavy rains fell over a consIderable portIOn of the drouth area of West and Northwest Texas late m May and early in June, but due to the absence of subsoil moisture tnore rain will be needed to sustain crop growth. Furthertnore, little or no rain has fallen in several counties in ~est and Northwest Texas in the southern half of New MexIco, and in Southeastern Arizona, where conditions are very acute. Harvesting of small grains is practically c~mpleted in tl~e Southern half of the district and is becommg general m o~her sections. High temperatures in m~ny ~ecti~ns h~~e 1'1 pened grains prematurely and harvestmg .IS pIOce~dl. g earlier than usual. The Department of Agnculture. m Its June 1 report estimated the Texas wheat. produ~tIO~ ~t 25,74,9000 bushels the same as a month earher, whICh mdICates ~ per acre y'ield of 9 bushels, whereas last year the per acre yield of 6.6 bushels produced a total o~ 13,~22,OOO bushels. There was no change in the prospective YI~ld of Wheat in Oklahoma in May and the estimated productIOn of 35,880,000 bushels for this year compares with a harve.st of .33,095,000 bushels last year. Winter wheat prospects 1:1 Anzona and New Mexico were reduced between May 1 ~n June 1 due to the continuance of the drouth and high tetnper~tures. The condition of the oat crop in states attached to this district declined during May, but ~he June 1 Condition in all states except Oklahoma was higher than on that date last year. The Texas oat crop is very ~potted. Reports indicate that yields of some fields are turnmg out Well while low yields are being obtained from other fields. Poor yields are also reported for rye and barley crops. The corn crop has made fair to good progress in portions of North and East Texas, North Louisiana, and Southea~t ern Oklahoma where timely rains were received, but ~n other sections it is sufferina from lack of moisture an.d m ~ost of the southern half Texas considerable de.tenorahon has already occurred. The Department of Agr~cultule reported that hay crops in Texas on June 1 were m on y fair condition. The condition of tame hay was rated at ~~ per cent of normal condition on June 1, as compared WIt 74 per cent a month earlier, and 73 per cent a year a9o. Wild hay was estimated at 72 per cent, as comp~red :WIth 71 per cent last year. Hay crops in Louisiana are m fa~r to gOod condition, but are poor in Arizona and New MeXICO. Crop Conditions ;f The planting of cotton is practically co~pleted ~n11 m~i~ of the crop ha.s been chopped to a stand m pra~tICa y sections. Fields generally are clean and well cultIvated. ~he crop is in all stages of growth, ranging from the ~loO:llng stage in South Texas to very small plants. in o~t west Texas. In West and Northwest Texas, the rams dunng the Past month have given the crop a fair to good start, b~t dry lVeather prevails in some counties and additional mOisture will be needed in other counties to sustain growth. In much of the older cotton region reports indicate that the crop averages a little late, with plants small and growth retarded on account of dry weather. In North, East, and Northeast Texas, Southeastern Oklahoma, and North Louisiana cotton has made generally good growth but there are complaints of dry weather in some localities. Insect activity is reported in most sections. Fruit crop prospects on June 1 were reported by the Department of Agricultul'e as fair to good and the estimated production is considerably larger than the poor crop of 1933. The condition of the citrus crop in the Rio Grande Valley dropped sharply in May, as rainfall was light in the producing area and growers reported a heavy drop of fruit. The condition of the combined farm and commercial crops of Irish potatoes in Texas was shown as 68 per cent of normal on June 1 as compared with 73 per cent a month earlier and 64 per cent a year ago. While dry weather has affected the crop in some localities, the crop in general is reported as in fairly good condition. Livestock The condition of ranges in the Eleventh District is very spotty. In some areas moisture is adequate for the present and ranges are furnishing fair to good grazing. Heavy rains fell over a considerable portion of the drouth area in West and Northwest Texas late in May and early in June and conditions there should show improvement. In several Texas counties bordering on Oklahoma and New Mexico, in the southern half of New Mexico, and in Southeastern Arizona rainfall has been light and of a local nature with the result that. ranges are very po()r, stock water is scarce, and livestock are becoming thin. Some stock are being moved to other states or to more favored areas. Except in favored localities, the trans-Pecos region is also very dry. The southwestern portion of the Edwards Plateau region is likewise dry and is in need of heavy general rains. Livestock have held up fairly well in all except the driest areas, but they are beginning to feel the effects of adverse conditions. The Department of Agriculture in its June 1 report rated cattle ranges in Texas at 78 per cent of normal, which was 4, points lower than a month earlier or .a y~ar ago. The condition of sheep and goat ranges was lIkeWIse placed at 78 per cent, showing a decline of 2 points from the May 1 figure and 6 points from that obtaining on the same date in 1933. The condition of cattle, sheep, and goats reflected no change during May, but as compared with last year, the June 1 figure for cattle was ~ points lo~er and those for sheep and goats showed a declme of 3 pomts. Movements and Prices The receipts of cattle and sheep at the Fort Worth market during May showed a large seasonal increase over the previous month but fell considerably under those in the correspondinO' m~nth last year. While the arrivals of calves were subst:ntially larger than in. either comparative peri~d, those of hogs showed large declmes from both the preVIOUS month and the same month a year ago. II 4 MONTHLY BUSINESS REVIEW -------------------------------------------------------------------------------------------------------The cattle market during the past month remained generally steady with a firm undertone_ There was usually a good demand for choice offerings at higher prices. The hog market fluctuated within a narrow range during May and then showed a rapid advance during the first half of June with prices for best offerings reaching $4,.35 at the middle Cattle . ......... . Calves .. . . . .... . Hogs ........... . Sheep . ..... .••. . May 1034 48,257 18,510 37,554 140,673 1088 52,683 14,378 59,014 181,220 Change over year - 4,376 + 4,132 -21,400 -40,553 OOMPARATIVE TOP LIVESTOCK PruCES (Dollars por hundredweight) May May FORT WORTH LIVESTOCK RECEIPTS (Number) May of the month, or more than $l.00 higher than at the 1.0W point in May. Sheep and lamb prices showed some recession under the heavier supplies. April 1034 33,768 11,289 48,016 37,125 Ohangeover month + 14,480 + 7,221 - 11,002 +103,548 Beef steers .. . . . . .. .. , . ...... . ..•...... ... Stoeker steers ........................... . Buteher eows .. ....... . . ................ . Stocker eows ..... . .. . ....... . ... . ... . .. . . Cnlves ...... . ..... .......... ....... .. . .. t:t::::::::::::::::::::::::::::::::: 1033 $5.00 5 .00 3. 50 1934 $6.60 4.90 4.25 4.50 0.60 3.05 5.25 9.50 April 1084 $0.00 do 0:00 5:75 4.30 5.00 9.50 4.65 2.50 6.00 FINANCE Federal reserve bank loans to member deposits of these banks totaled $281,095,000 on J~ne 13 an banks reflected a further seasonal ex- which was $11,156,000 greater than five weeks ear her, rose . pansion during the past month, but re- $65,425,000 larger than a year ago. Their time depOSIts h e mained at a very low level in comparison $4.1 0,000 during the period but were $2,668,000 under t ose with previous years. The total of these loans rose from at this time last year. While the reserve deposits of. th~i $359,000 on May 15 to $583,000 on June 15, and the latter banks with the Federal Reserve Bank declined shg~ t~ total compares with $4.,446,000 on the corresponding date between May 9 and June 13, the total on the latter a in 1933. There were 24. borrowing banks on June 15 as com- was nearly three times as large as that on June 14~ 1933. pared with 15 banks a month earlier, and 139 banks a year ago. Investments in bankers' acceptances declined from CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thonsands of doUars) $310,000 on May 15 to $14.2,000 on June 15. There was no ----------------------------------------------change in holdings of United States Government securities May 9, June 14, June 13, 1034 1033 1034 during the period. While the reserve deposits of member $149,436 $ 93,282 United States seourities owned ...... . ..... . $146,485 51,460 banks showed considerable fluctuation during the past month 53,321 All otber st<loks, bonds, and soourities owned. 55,610 50,508 05,580 Loans on sccurities .................... . . . 00,118 and the total on June 15 was $6,822,000 lower than on May 126,531 143,131 All other loans . ....... . ................. . 122,244 186,120 15, the average for the period was practically the same as 208,670 Total loans ......... .... . ........ . .... .. . 182,302 260,080 215,670 281,005 Net demand deposits ... ....... .. ... . .... . 121,213 for the previous period. The actual circulation of Federal 124,201 Timo deposits .. ... . ................ . .... . 121,623 75,204 20,700 Reserve with Federal Reserve Bank ..... . . . 73,914 reserve currency totaled $4.1,314,,000 on June 15, which Bills payable and rediscounts with Federal None 700 Reserve Bank ..... .... .. ..............• None represents a further slight seasonal decline as compared with that on May 15, but a gain of $4.,74.4~OOO over the ·, circulation on June 15, 1933. Debits to eh arges to deposltors accounts at . banks the Individual located in p l' inc i p a I centers 111 000 Accounts Eleventh District totaled $530,099, aCONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) during May, reflecting a contrary to .seus sonal increase of l.0 per cent as compared with the prerl~e June 15, May 15, June 15, 1934 1933 1934 month. There was a gain of 23.6 per cent over the vo gOO. $ 51,657 $103,170 Total oash reserves ...................... . $103,476 reported in May, 1933, when debits totaled $4.28,747, (10 4,446 588 359 Discounts for member banks . .. . ...... . . . . . None None Nono Other bills disoounted . . ....... . " ..• . . . . .. While two cities failed to show an increase over a year a 142 335 310 Bills bought in opon market ..... ...... ... . 71,475 40,440 71,475 United States seeurities owned ... .. . .• . .. . . eight of the seventeen reporting participated in the ga None None 5 Otber Investments ... . ... ..... . .. . ....... . over both comparative months. 72,200 51,226 72,144 Totol earning assets ............. . .... ... . Operations of the Federal Reserve Bank d in; Member bank reserve deposits ..... . ...... . Federal reserve notes in actual oiroulation .. . Federal reserve bank notes in aetual eiroulation .. ............................. . . 111,267 39,889 51,231 35,595 118,089 39,053 1,425 975 2,775 A slight increase in investments, a large gain in deposits, but a recession in loans was reflected by reports of member banks in selected cities for the period between May 9 and June 13. While the investments of these banks in United States securities declined $2,951,000 during the period, their holdings of other secUl'ities were increased $4.,14.4,,000. As compared with a year ago, total investments on June 13 were $55,4.92,000 greater, but most of the gain was in United States securities. While loans on securities showed an increase of $520,000 during the five-week period, "all other" loans (largely commercial) declined $4.,287,000, making a net recession of $3,767,000. Total loans on June 13 were $26,308,000 below those on the corresponding date in 1933. The net demand Condition of Member Banks in Selected Cities DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) __ --------------------------------------~~ Percentage Percentage ohango ovor May May change over Apr!'1 !Donth 1034 1033 year 1084 6 Abilene........ . $ 4,541 $ 3,884 +10.9 S 4,750 Austin .. ........ 17,550 15,257 +15.1 21,820 -1 0 '8 Beaumont...... . 15,282 11,170 +36.7 14,304 + 4' 7 Corsicana.. .... . 2,268 2,107 +4 .7 2,380 +1: 7 Dallas.. .. ...... 156,807 110,202 +34.9 154,178 +10 . 6 EIPaso.. ....... 10,838 14,202 +18.6 15,227 + 5.6 Fort Worth...... 54,547 45,805 +18.0 51,630 _ 6.8 Galveston....... 10,021 15,702 + 1.6 17,182 20 Houston .. .. .. .. . 124,231 107:852 +15.2 127,915 3'2 Port Arthur..... 4,054 4,142 +19 .0 4,800 4' 0 Roswell...... ... 1,080 1,923 + 3.3 2,009 +12'3 San Antonio..... 52,822 40,010 +32.0 47,022 1' 0 Sbreveport.... . . 28,459 20,913 +36.1 28,732 - 8'0 Texarlrona· ..... 4,712 5,023 - 6.2 5,122 - 9'8 Tueson.... .. .... 8,135 7,001 + 5 8 7,408 + 8'2 Waoo...... ..... 0,061 9,066 -:1 0,875 +16'6 Wiehito Falls .... 11,870 7,510 +58.2 10,288 ~ h :+ -- -- -- - 10 TotaL.... $530,090 $428,747 +23.0 $524,717. + Eighth ·Inoludes figures of two banks in Texarkana, Arkansas, loeated In tbe Distriot. ~-------------Mm~vmNrn~~~-------------- _______________________MO_N_T_H_LY B_U_S_INES_S~R=E~V=IE~W~____________________~5 __ __ __ month, there being a slight gain in daily average time de. posits during May. Deposits 0/ Member Banks Continuing the downward trend which is usually in evidence at this time of year, the combined daily average of net de· ~a~d and time deposits of member banks in this district 9unng May amounted to $708,920,000, as against $715,· 45,000 in the preceding month, and $580,932,000 in the $~me month last year. Net demand deposits decreased from 23,397,000 in April to $516,090,000 in the subsequent DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) Combined Total ~ay, Jure, AU y, Seug ., ~t., o N0" DOv ., J co., Fa~., M., A a~i' J."" ay, Net demand depoeita 1933 ... . . . $304.336 1033 .. .. .. 395,983 1033 .... .. 396,783 1033 .... .. 389,177 1033 .... .. 400,597 1033 .... .. 436,027 1933 .... .. 466,198 1033 ..... . 494,176 1034 ..... . 505,909 1034 .... .. 532,717 1034 .... .. 535,355 1084 .. .. .. 523,307 1034 . . . . . . 510,000 Reserve City Banks Time Net demand deposits depoeita $186,596 $191,847 186,405 192,396 191,055 196,040 190,931 101,302 187,508 195,145 186,936 210,987 187,947 228,265 186,687 240,971 192,214 249,091 195,746 261,770 192,766 263,291 102,548 257,838 102,830 253,752 Country Banks Time Net demand Time deposita deposits deposita $113,101 $202,480 $73,495 113,390 203,587 73,015 m,908 200,743 77,147 112,665 197,875 78,266 110,146 205,452 77,362 100,264 225,040 77,672 106,914 237,933 81,033 106,1 32 253,205 80,555 108,317 256,818 83,807 110,348 270,947 85,398 108,385 272,064 84,381 107,015 205,550 84,933 108,140 202,338 84,084 Acceptance Market Acceptances executed by banks in the Eleventh District and outstanding on Mar 31, which amounted to $166,367 sho.wed a further declme from the previous month and reo mamed at a level considerably below that of a year The amoun.t reported on April 30 was $275,675 and onafh~ correspondmg date last year it was $1,127,701. Of the total reported on the last day of May, $47,437 represented ac. ceptances based on import and export transactions a d $118,930 ~as t?e amount of acceptances executed a~ai:st the domestIc shIpment and storage of goods. There W?S a furt~er increase of 0.9 per cent durmg ~ay m the savings deposits . . of .128 reportmg banks in the Eleventh DIstrICt. These depOSIts at the close of the month t t l ed $138,590,627, as compared with $137,4,10,775 on Ap~t 3 O, and .$ 133,762,486 on the last day of May, 1933. The ex. pan~IOn ov~r a year ago amounted to 3.6 per cent, this com. pan~on bemg somewhat more favorable than that a month earlIer. Savinf5,s Depos~ts ___-----------------------------------------------J SAVINGS DEPOSITS ........ ..... .. .. ~caumont Et~as ........ .... .. .. .... F"rt'W~rt "" """"'" .. Galveston h ..... . . ..... .... Rouston .. ............. .. Port Arth'~ ....... .. .... . .. San Anton'···· .. ·· .... · · · Shreve rtIO ..... .. ........ Wac po . . .... ..... . .... Wichlta 'Fn .. .. ... ... .... .. I;U ethers Us .......... .... .. ............... Number of reporting banks 3 O· 2 4 4 11· 2 7· 3 3 3 77· Number of savings depositors 8,250 74,558 10,720 32,980 10,077 60,684 5,015 17,8S1 21,530 10,493 5,OSI 52,027 Apr1l30, 1034 May 31, 1033 May 31,1034 Amount of savings depoeits $ 3,273,263 24,244,430 4,521,180 10,005,319 9,055,561 28,082,717 I,S54,525 14,S82,110 1O,07S,S55 6,8S6,202 2,762,619 23,303,931 Amount of Number of savin~ savings dOPClIllta S 3,048,132 24,182,301 3,384,323 10,777,917 9,754,547 29,304,049 1,932,322 13,65 1,994 S,979,080 6,579,835 2,332,052 20,S35,334 depositors 7,050 73,020 10,213 33,099 16,444 05,997 4,363 10,358 21,S40 10,427 6,537 50,750 Number of savings depositors 8,229 74,384 10,655 32,047 10,655 60,440 4,968 17,647 21,517 10,50S 5,691 52,342 Poroentage ohange ovor year In savings deposita + 7.4 + .3 +33 .6 - 6.3 - 1.0 - 4 .2 - 4.0 + S.6 +12 .2 + 5 .5 +18.4 +11.S -- + 3.6 $133,762,486 316,007 $13S,590,627 12S 323,10S Total. ... ......... 'Only S banks in Dallas, 10 in Houston, 6 in San Antonio, and 70 in " All otbers" reported tbe number of savings depositors. n;,r~\arged customcrs on prime commercial papor suob as tbat nolV eligible for nato IScount uuder tho Fedcral Reserve Aet ...... .. . . . . ........... . .......... . ltat chargcd on loans to othcr banks scoured by bills rcooivable ... . ..... . .... . ... . EI Paso Fort Wortb 6 6-S 5- 6 2-6 6- 0 ". on Iqans scoured by prime stook exchange or other eurrent oollateral (not Ibeludmg leans plaoed in other markets through oorrespondent banks) : ~i:e~nd .. . .. ..... .. . . .. . ............ . ... . .... ····: · ::::::::::::: :: : 5-0 4* S 4-7 6- 0 6- S 6- S 8 6-S 5-8 5-S 6- S 6-S R:~ chargcd o~ ~o~odiiy 'p~p';; 8~d~;cd by' ;.-~r~ho~~~·;~~ipis', cite .. ..•... .••···· ~n cattlo loans . .. ....... . ................ · .. ·· · ...... · .. · .......... .... · 1 ~-7 321,9S3 $137,410,775 .avln~ Peroentage obange ovor montb In savings deposita + 2.5 + .7 + 2.1 + .3 + .2 +1.3 .8 +1.1 - 1.2 + .9 - 1.2 + 1 .6 - -+ .9 Prevailing ratee: JUNE DISCOUNT RATES Dallas depoelta $ 3,194,372 24,004,750 4,420,107 10,065,624 9,634,002 27,728,101 I,S09,176 14,607,937 10,197,614 5,834,577 2,797,17S 22,027,677 Amount of Heuston San Antonio Waco 6- 7 4*6 4- 6 6 3-0 5-7 5-7 3- 7 7- 10 6-S 6-S 6-8 6-8 6-S 6- 8 5- 6 6-5~ S --- -----------------------------------------------------~ INDUSTRY . With the exceptIOn of the receipts 0 £ cottonseed, which were somewhat larger ap. than those in the previous mon~h, and c toxunately the same as in May 1933, operatIOns at t~ tonseed oil mills in Texas during the past month declined of a level far below the average for that month. Crushings th seed and the production of all products reflected larger n seasonal declines as compared with April, and they Ce r~ also materially below those a year ago. With one ex· Se Phon, the output of linters operations during the current hei~~' Aug~st 1 through May 31, continued considerably ing those m the correspondmg ten months of the preced. season. Cotton see d P roducts \V: The trend of activities during May at cottonseed oil mills located throughout the United States was similar to that in Texas. Receipts of seed at these mills reflected a decline as compared with May a year ago but they were greater than those a month earlier. The production of all products and the crushings of seed showed. large declines as compared with both the previous month and the same month of 1933 Operations during the current season remained below thos~ of the previous season with the exception of linters. Stocks of cottonseed products on hand May 31 were less than those a month earlier at both Texas and United States mills. Inventories of cake and meal, hulls, and linters at Texas mills on May 31 were smaller than on the same date a year ago, ~------------------------~~==~~~==~------------------------------------ 6 MONTHLY BUSINESS REVIEW -------------------------------------------------------------------------------------------------------------while at United States mills stocks of cake and meal were larger. STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texas United States August 1 to May 31 August 1 to May 31 This season Last season This season Last season Cottonseed recolved at mills (tons) .................... . 1,309,725 1,423,130 4,062,803 4,440,916 Cottonseed orushed (tons) .... . 1,200,634 1,449,649 3,964,204 4,202,160 Cottonseed on hand May 31 (tons) ........... . '" ... . . . 117,077 148,749 318,980 447.760 Crudo oil produced (pounds) .. . 382,214,240 441,820,2301,241,408,3001,389,266,468 602,351 Cake and meal produoed (tons) 668,611 1,801,370 1,041,016 Hulls produoed (tons) .... . ... . 433,706 1,056,102 363,176 1,221,888 Linters produced (running bales) ................... .. 172,868 222,010 769,491 081,681 Stooks on hand Mny 31: Crudo oil (pounds) ......... .. 24,905,100 16,014,000 56,382,174 53,557,059 Cake and moal (tons) ........• 205,009 219,748 47,268 54,146 57,201 . 87,029 Hulls (tons) ...... ... ....... . 23,803 33,045 Linters (running bales) ......•. 133,013 172,295 33,045 44,033 Textile Milling Activities at cotton textile mills in the United States evidenced a contrary to seasonal increase during Mayas measured by the consumption of cotton. While a substantial decline was registered as compared with the corresponding month of 1933, the reduction is minimized when it is recalled that operations in May last year were on an unusually high level. The 519,765 bales of cotton consumed last month compares with a consumption of 512,703 bales in April, and 620,651 bales in May, 1933. Notwithstanding the large decline in Mayas compared with a year ago, consumption of cotton during the current season, which aggregated 4,977,772 bales on May 31, continued in excess of that in the corresponding ten months of the previous season. Stocks of raw cotton held by consuming establishments on May 31 were smaller than a month earlier, but remained above those on the same date of 1933. The consumption of cotton at reporting Texas textile mills during May evidenced a decline as compared with both the previous month and the same month a year ago. On the other hand the production of cloth, while showing a smaller volume than in May, 1933, was in excess of that in April. Orders for finished products held on May 31 were smaller than a month earlier, and materially below those a year ago. Stocks of cloth on hand at the end of the month were greater than on either comparative date. season. Receipts of cotton at these ports during May r~' fleeted further seasonal declines, and they were also materI' ally below those in May a year ago . Stocks of lint held on May 31 were seasonally smaller than a month earlier at both ports, but at Galveston they were greater than the holdings on May 31 last year. Total foreign exports of cotton from the United States showed a further large decline during May. Shipments wer considerably smaller than those in the previous month, an noticeably below the exports in May, 1933. There ",:er~ 284,,764 bales of cotton exported during May, as agaJllS 386,594 bales in April, and 591,647 bales in the like m?nt~ of 1933. Shipments during the 1933-34, season remaJlle considerably below those in the corresponding ten monthi of the previous season. Although there is usually a gene.r a slowing-down in the takings of American cotton by fore~g/l countries at this season, the large declines in exports dur~g the past two months are attributable only in part to t IS factor . d - COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bales) May Receipts .... . .......... . ... . Exports .............•.... •.. Stooks, May 31. .... . .. . .... . Mny 1034 84,066 95,001 1933 102,155 171,780 August 1 to May 31 This season Last senso n 2 109 609 1:050:905 047,041 2,004,230 1,88 8,7 4 27 6, 07 l - COTTON-GALVESTON STOCK STATEMENT (Bales) May 31, For Great Britain ............ . ............... . ..... .. For Franoo .......... . ............ . ................ .. For other Coroign ports ....... . ........... . ..... . .... .. For cOll8twiso ports ...... . ........• . .................. In oompresses and dopots ........... . ................ .. 1984 2,000 3,000 28,700 1.000 012,941 Total. ............................. . ... . 647,041 May 31, 1033 4,000 2,000 23,000 2,500 590,174 - .:=::=627,674 COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) ----------------~----------------August 1 to Mny 31 May Receipts ................. . .. . Exports .................... . Stooks, May 31. .... . ...... . . May 1934 23,756 93,227 193a 103,411 230,521 This soaSOll Lnst senson 2,190,055 2,304,238 1,003,712 2,7~~'~~~ 2,220'01 1,5, 2 COTTON CONSUMED AND ON HAND (Bales) May Cotton-growing states: Cotton oonsumed.... . ... ... On hand May 31 inConsuming establishments. Public storago and comprosses .. . ............ . United States: Cotton consumed...... ..... On hnnd May 31 inConsuming establisbments. Public storage and oompresses ....... . ....... . May 1934 1983 416,911 513,954 August 1 to May 31 This season Last season 1,104,000 6,240,003 020,651 4,036,770 1,008,945 519,765 3,968,070 0,851,011 4,977,772 4,830,403 1,421,428 1,392,209 0,570,664 7,328,146 Exports of cotton through the ports of Houston and Galveston remained at a very low level during May notwithstanding the fact that an increase over the previous month was reflected at Galveston. Shipments were also materially below those in May, 1933. Despite the large declines that have been witnessed during the past two months, however, exports during the current cotton season continue in greater volume than those in the corresponding ten months of the previous Cotton Movements -- SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORT8-(Bales) ----------------------------------------~~-.--August 1 to Mny 81 Tbis soason LlI8t SCllSon Receipts ............................................ . Exports: Unitro Kingdom ........................... . Frnnco .................................... . Italy ............................ . ..... . ... . Gormany .......... .. ... . .................. . Other Europe .............................. . an ...... . ............................. .. Al otbor oountries .......................... . Jar ;rt~:~sC~~~~~r~[ltsU~it.id 'Sta't~ 'po;ts; M~y' ai:: ::: :::::: 7,411,367 1,100,973 091,000 001984 1,227:650 934,000 1,637,020 506,740 6, 709,300 2,833,265 8,327,2~g 1,26258'~60 7, 601,272 1,~~~'~~~ '205 1,445 h15 0 ' J 7'817121'~~0 3, ' SPOT COTTON PRICES-(Middllng Basis) (Cents per peund) ---= ------------------------------------------------Juno 15, Mny, 1934 Higb NowYork ....•........ . ................. New Orleans ........................... .. Dallll8 ................................. . Houston ................................ . Galv08ton .............................. . Low 11.70 11.65 11.25 11.65 11.70 10 . 75 10.85 10.45 10.85 10 .85 1034 12.15 12.07 11.05 12.10 12.05 \~ ----------------------------------~~~~~~~~~~~~-=~==~~~--------------------------------- __________________________ M_O_N_T_H_L_y_B_VSI_N_E_S_S_R_E_V_I_E_W __ ______________________~7 Petroleum The output of crude oil in this district . during May was appreciably larger than I~ the preceding month, but because of the marked expanSion which occurred in this month last year there was a sizable reduction as compared with a year ago. The month's ~otal yield amounted to 34,157,350 barrels, as aga~nst 31,67,000 barrels in April, and 44,730,500 barrels In May, ~933. Daily average production rose from 1,058,900 barrels In .April to 1,101,850 barrels in the succeeding month, this being the fourth consecutive monthly increase that has been registered. A moderate decline in drilling activity was reported, and the initial output of producing wells completed ~n May amounted to 2,504.,760 barrels, as compared with ,734,842 barrels in the previous month. Daily yield in Texas during May amounted to 1,030,200 bar~'els, which compares with 987,700 barrels in the precedIng month, and 1,379,719 barrels in the same month last year. The larger increases over April were shown in the East Texas and Gulf Coastal areas, and a small decline OCcurred in South Texas. The daily production of fields in New Mexico continued its upward trend in May, while that of North Louisiana reflected a further decline. MAY DRILLING RESULTS North Toxll8 ... . .. " ... .. .. Contral West Texll8 .. ..... . . Enst Texas .. . ... . .. . . . .. . . South Texas . . ..... . . . .... . Toxos Coastal.. ..... . ...... Total Texas ... . ..• Now Mexico .. . .. . ......... North Louisiana ..... . . .. ... May totals, district . . . . .. ... April totals, district . .. .. .. .. Complctlona 248 87 336 112 83 0118 .. Producera 149 49 323 40 68 Fallures 88 34 11 54 20 1 1 1 13 wells 11 4 2 0 Initial production 35,783 140,687 2,256,465 18,370 51,205 - -----866 -633 - - -207 2,502,510 - 26 6 12 7 26 - 650 - - 800 - -28- 714 080 24 1,106 1,066 - 221 - ----2,604,760 2,734,842 261 CRUDE OIL PRICES ToxlI8 Coastal (34 gr. and ahove) ........ . .. . .. .. ..... . . North Texas (40 rand ahovo) . . ... . . ..... . .. . .. .... .. North Louisiano 40 gr. and above) .......... . .......... 'Flat prico. ~----------------------------------------------~ June 8, 1034 $1 .12 1.03 1.08 June 9, 1933 $ .30' .26' .25" .. .. (011 statistics compiled hy Tho 011 Woekly, Houston, Texas) OIL PRODUOTION-(Barrols) Inorease or decrease over ~orth TOxlI8 . .. . ... . . .. . .... . E::r~1 West TOxlI8 .. . .. ... . . . S h eXII8 .. .. ...... .. .... .. Tout TexlI8 .... . ........ .. . . eXII8 COll8tal.. .. .. . ..... ... . May, 1034 Total Daily Avg. 3,551,050 114.550 5.287,050 170,550 16,276.550 525,050 1,478,700 47,700 172,350 5,342,850 April,1034 Total Daily Avg. + 108,550 + 2,800 + 340,050 + 5,650 +1,278,050 +25,100 + 16,200 - 1,050 + 472,350 +10,000 706,700 1,030,200 45,060 25,700 +2,305,200 + 75,950 + 0,200 42,500 :): 1,000 550 Total District.. . . . . .. 34,157,350 1,101,850 +2,300,350 +42,060 /II Total TexlI8 . . ....... 31,036,200 /II ew Mexico .. .. . . .. .. . . . .. . . 1,424,450 orth Louisiana. . .. . ... ...... Building Building permits issued at principal cities in this district during May totaled $2,055,395, which compares with $1,006,538 in the previous month, and $1,068,34.2 in the same month a year ago. While the gre_ater part of the large increase over both months occurred at Houston, most of the other reporting cities also participated in the gain. The number of construction permits issued during May, though slightly in excess of the April figure, was smaller than in the corresponding month last year. BUILDING PERMITS January 1 through May 31 Percentage ohange A Porcontage change 1_...:""p",ri;:,.I',:c10",,34'--_1 Percontago chango 1---~10;;':34?!..:..:::;-:~!.!:!;~10;";3:';'8---1 valuation ovor period _~~='---·I_-"'-7'-'c.::,:.;:.o--1 valuation over No. Valuation valu;:'~~~hovor No Valuation N Valuation _N . _V_ol_ua_ti_on N_o_ Valuation I____y_co_r___- I - - _o_ __ . .I- -_-7-3-.6---I-.:cc:.·'--0I'I-S...=;I"'43"',Oc::.30·1-.:cc::.o·'-83 $ 60,214 +106.6 743,140 - 63 .6 10 S 13,018 26 $ 37,838 ~U ~~ $ g~:m 13 . 1 340 270,046 420 60,712 68.6 73 68,336 08 111,656 +202.1 105 16,233 +208 .0 414 100,710 380 68,023 + 07 . 1 00 46,Oll 07 16,630 +1206 16 25,700 - 36 .7 ll6 135,854 06 030,228 + 13.8 32 16,500 18 7,230 + 3'8 400 202,786 + 26.3 1,037 1,068,489 1,640 86,110 + 41.6 446 266,029 604 246,714 +208:6 42 18,660 + 63 .2 184 120,520 163 1,061,870 - 70.0 35 28,413 27 7,128 _ 70 .3 70 03,800 + 10.6 307 316,070 4ll 168,378 5 .3 78 76,250 87 266,356 _ 12 .3 131 56,262 - 48 .8 687 177,321 420 882,333 +164.0 134 28,205 100 32,264 +626.2 109 262,846 :):380.0 904 2,240,715 862 28,012 +ll6.7 2ll 1,263,100 207 173,038 +137 7 42 13,810 3.8 106 62,368 184 467,001 - 32.4 37 14,340 46 6,032 _ 31 . 0 ' 130 48,122 :): 16.3 656 308,706 003 130,002 +169.0 140 66,066 166 82,100 28 00032 46 9 742 337,086 402 137,614 + 10 .2 212 132,661 141 41,668 +218.4 228 80'387 - 68:4 100 163,048 133 36,ll3 + 72 . 7 22 33,440 26 32,662 + 2.7 0'100 +241.1 130 60,656 133 47 31,067 10 17,237 + 80 .2 65 , + 13 .4 $4,866,618 6,803 $6,607,376 6,ll8 +104 .2 _ _- -I,560 -S1,006,638 1,675 $2,056,305 1,660 $1,068,842 + 02.4 May, 1034 Amarillo . .... . . ~ustin .. ..... . . Cooumont . . ... . D~Ir.us Christi .. EIP:,······ ··· F two .. .. .. .. GOI orth .... Fl voston . ... . .. P ouston .... .. . . ort Arthur ... . San Antonio SWhrevcport . .' .' : : aco Wichiiti ·Ftil~.' : : _ Total. ... May,1083 = While a further curtailment in prod~c. tion was made at Portland cement mIlls ~~ Texas during May, a substantial gain in shipments was o fleeted and they were also larger than a yea!' ago. Total bUtput amounted to 297,000 barrels, as agamst 354.,000 Sa~rels in April, and 333,000 barrels in May last year. hlprnents which totaled 356000 barrels, were 12.7 per ~bnt large; than in the previo~s month, and 11.3 per c~nt sh ov~ those made in the same month la~t year. Inventones, to OWIng a decline of 9.7 per cent dunng May, amounted 557,000 barrels on the last day of the month as compared Cement - + + with 678,000 barrels a year ago. PRODUCTION, SIDPMENTS. AND STOCKS OF PORTLAND CEMENT (In thousands of harrols) 207 366 Porcentage ohango from May April 1033 1034 -10 .8 -16.1 +11.3 +12 . 7 567 -17 .8 - May 1034 Production at Texll8 mills ....• Shlpmcnts from Toxas mills . . .. Stocks at end of month at Texll8 mills .... . .. . · · · ···· .... ·· . 0.7 January 1 through May 31, 1034 1,660 1,565 Porcontage ohange over year + 1.8 1.6 + ---------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW --------------------------------------------------------------------------------------------------8 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board. June 23, 1984) Industrial production increased slightly in May, while factory employment and payrolls showed little change. The general level of wholesale prices, after remaining practically unchanged since the middle of February, advanced sharply in the middle of June, reflecting chiefly increases in the prices of livestock and livestock products. PRODUCTION AND EMPLOYMENT Industrial production, as measured by the Board's season· ally adjusted index, advanced from 86 per cent.of the 1923· 1925 average in April to 87 per cent in May, as compared with a recent low level of 72 last November. Activity at steel mills increased further from 54. per cent of capacity in April to 58 per cent in May, while output of automobiles showed a decline. Lumber production continued at about one·third the 1923·1925 level. In the textile industries output declined somewhat, partly as a consequence of seasonal development. At mines coal production showed little change in volume, while output of petroleum continued to increase. In the first three weeks of June activity at steel mills con· tinued at about the May level, although a decline is usual at this season. Maintenance of activity reflected in part, according to trade reports, considerable stocking of steel. Output of automobiles declined somewhat, as is usual at this season. Employment in factories, which usually declines slightly between the middle of April and the middle of May, showed little change, while employment on the railroads, in agriculture, and in the construction industry increased, as is usual at this season. Increased employment was shown at manufacturing establishments producing durable goods, such as iron and steel and non·ferrous metals, while em· ployme~t declined at establishments producing non·durable manufactures, such as textiles and their products. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation has shown a decline in the spring months, reflecting a reduction in the volume of contracts for public projects. The volume of construction work actually under way has increased as work has progressed on contracts previously awarded. Department of Agriculture estimates based on June 1 conditions indicated unusually small crops of winter wheat and rye and exceptionally poor conditions for spring wheat, oats, hay, and pastures, largely as a consequence of a prolonged drouth. The winter wheat crop was estimated at 400 million bushels as compared with a five year average of 630 million bushels and an eX' ceptionally small crop of 350 million bushels last seas on. Rains in early June somewhat improved prospects for forage and grain crops not already matured. DISTRIBUTION Total freight traffic increased in May by more than the usual seasonal amount, reflecting in considerable part ~ larger volume of shipments of miscellaneous products. A department stores the value of sales showed an increase as is usual at this season. COMMODITY PRICES During May and the first three weeks of June wholes~~e prices of individual farm products fluctuated widely, whl e prices of most other commodities showed little change. Wheat, after advancing rapidly during May declined. con siderably in the first three weeks of June. Cotton contlllUf to advance in the early part of June. In the middle of ye month hog prices increased sharply from recent low leve s. Automobile prices were reduced in the early part of June, and copper prices advanced. d BANK CREDIT During May and the first half of June there was little change in the volume of reserve bank credit outstanding ad a consequence of expenditure by the Treasury of cash al~ deposits with the Federal reserve banks and a growtiI In I've the country's monetary gold stock. Member ban k res e balances advanced further to a level $1,800,000,000 in ;~. cess of legal requirements. In the week ending June t' ~owever~ excess r.eserves dropped t~ $1,675,000,000, reflek~ Ing an Increase In Treasury depOSIts at the reserve ban.. in connection with June 15 tax receipts and sales of Gove!n ment securities. Total loans and investments of reportI~z member banks increased by $80,000,000 between May t5 and June 13, reflecting a growth in holdings of inve.strn en n other than United States Government securities and III ope CUS' market loans to brokers and dealers, while loans to t ou tomers declined. Net demand deposits increased by ah n $4'()0,000,000 during the period. Money rates in the oper. market continued at low levels. The rate on prime comrnest cial paper declined to %.1 per cent in June, the lowe figure on record.