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MONTHLY BUSINESS REVIEW
OF THE

FEDERAL RESERVE BANK OF DALLAS
C. C. WALSH

CHAS. C. HALL-W. J. EVANS

Chairman and Federal Reserve Agent

Assistant Federal Reserve Agents

(Compiled June 15, 1935)

Volume 20, No.5

Dallas, Texas, July 1, 1935

=-

This copy is released for publication In afoornoon papers-

July 1

DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eloventh Fedeml n""orvo Distriot
May
1035

Ba~~ dobits to individual acoounts (at 18
D O1tl"") .... . .......................... . .. .
Ropartmont sturo salcs . ........... ..... ... . .
""Frvo bank loans to mombor bonks at end
R 0 month ............................... .
B"'!?dr,vo bank ratio at end of month ... . . .... .
CUI IDg pOrmit valuation at largor conters ... .
C~~~~~~!at failurcs ~~U~I?c!) ............... .
0'1 od 10. ntlurcs hablhtlcs) ......... . ... .
-2..,pr uotlon (barro s) ................ .... .

$605,449,000
510,029
50.5%

$ 2,311,045

30
$
334.000
34,371,250

Chango from
April
-

+

2.2%
. 7%

+
+

3.5%
.1

=~:~~
- 17.obi
+ 4.0~

point

t ~ material improvement in the condition of the agriculUlal and livestock industries brought about by the continued
h
eavy rains in all sections of the district, and sustained
activity in the distribution of merchandise were develop~ents ?f major importance during the past month. While
c~ods In some sections did considerable damage to growing
ops and retarded field work, a period of dry weather
Would do much to overcome the bad effects, and the good
~eason which now obtains will be a sustaining factor in crop
frevelopment throughout the growing season. Good yields
m feed crops are practically assured and the Qutlook for
~t er row crops is generally promising. The condition of
~hnges and livestock has shown a marked improvement, and
t' ere are prospects for ample summer pasturage in all seclon~ of the district as the prolonged drouth in the western
~~rdtlOn Was definitely broken by the heavy rains around the
I dIe of June.

h

Distribution of merchandise in wholesale channels continued active in May, which is normally a quiet month, and
the volume of business in a majority of reporting lines was
substantially larger than a year ago. Sales of department
stores located in larger cities were slightly larger than in
the previous month, and exceeded those in May, 1934 by
2 per cent. Collections in both wholesale and retail trade
were well sustained. Debits to individual accounts at banks
in leading centers, while 2 per cent smaller than in April,
were 12 per cent greater than in the corresponding month
last year.
The daily average of combined net demand and time
deposits of member banks totaled $798,311,000 in May,
reflecting less than the usual seasonal recession, and an
increase over the same month of 1934" which was the largest
reported during the current year. Member bank borrowings
at the Federal Reserve Bank rose moderately in May and
in the early days of June, but the subsequent liquidation
reduced the lotal at mid-June below that a month earlier or
a year ago. The actual circulation of Federal reserve notes
rose $3,184,000 between May 15 and June 15, and on the
latter date was $10,578,000 greater than on the same date
in 1934.
Building operations reflected a slowing down during the
past month. The valuation of building permits issued at
principal cities declined 24 per cent as compared with the
lar~ April volume but was 13 per cent above that in the
corresponding month last year.

BUSINESS
fPholesale
Distribution of merchandise through
Trade
wholesale channels in this district was in
th .
substantially larger volume during May
s an In the previous month, and most of the gain was nonbea~onal in character. The only line reporting a decrease in
ilislness during the month was dry goods, and in this case
fl e reduction was partially attributable to seasonal inthe1~es. Sales were materially larger than in May, 1934, in
one hInes of groceries, farm implements, and drugs. Stocks
ex and declined during the month in the case of all lines
g c1 t farm implements, but on May 31 all lines except dry
a~ s reported larger inventories than a year ago. The
Ount of collections during May was somewhat smaller

than in April, although a slight increase occul'fed in two
lines.
A larger than seasonal fallin g off was witnessed in the
business of reporting wholesale dry goods firms during May.
Sales were 8.0 per cent less than in the preceding month,
and 8.2 per cent below the level of a year ago. While the
latter comparison was less favorable than that reported in
April, it was slightly better than the average reported for
the period from January to May, inclusive. Inventories con tinued their downward trend during the month. A decline
of 6.7 per cent from the previous month was reflected in the
volume of collections during May.

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 sales of wholesale hardware firms in this district
during May were 1.5 per cent larger than in April, but
showed a decline of 5.7 per cent from the same month in
1934,. In this connection it should be remembered that busi.
ness was more active than usual at this time last year. There
was practically no change from April to May in the volume
of collections made on accounts and notes outstanding.
The demand for groceries at wholesale was well sustained
during May, total sales being in approximately the same
volume as in April. They reflected an expansion of 20.2 per
cent over the corresponding month last year, which is about
the same as the average increa3e recorded since January 1.
Total collections on accounts during May were somewhat
larger than those reported in th-e previous month.
There was a contrary to seasonal expansion of 9.3 per
cent in the May sales of drugs by reporting wholesalers in
the Eleventh District. A gain of 6.8 per cent was reflected as
compared with the same month last year, and for the fivemonth period ending May 31 there was a similar increase
of 5.4 pel' cent. Stocks on hand registered a material reduction during the month. Collections were in about the same
volume as in April.
The distribution of farm implements at wholesale turned
noticeably upward in May after having decreased similarly
CONDITION OF WHOLESALE TRADE DUlliNG MAY, 1935
Percentago of incrC!l8o or dccrC!l8o In-

Groccries .. .. .....
Drygoods ........
Farm implemcnts ..
Hardwaro ........
Druga ........ .. ..

Net Sales
Net S.lce
Stooks
Ratio of collccMay, 1935
Jan. 1 to date May, 1935 tions during M.y
compared with compared witb compared with to accounts and
May, April, same period May, April, notes outstanding
1934
1935
lnat year
1984 1985
on April 30
+20.2 +.2
+20.5
+11.0 _ 2.0
90.4
- 8.2 - 8.0
- 8.8
-13.4 _ 3.3
33.9
+35.7 +38.5
+62 .5
+17 .8 + 3.2
5.0
- 5.7 + 1.5
-.8
+ 1.5 - . 4
51.8
+6.8 +9.3
+5.4
+2.5 -6.3
53 .5

in the previous month. Business was on a scale 38.5 per cent
above that of April, and 35.7 per cent higher than in May
last year. Stocks on hand were increased somewhat further,
and at the close of the month were 17.8 pel' cent greater
than a year ago. May collections totaled 8.3 per cent less
than those of the preceding month.
Although business of department stores
in principal cities of the Eleventh District did not witness the increase in May
that is customary for that month, sales continued slightly
larger than in the previous month and remained above those
in the corresponding month of 1934. The total dollar volume
of sales during May was 0.7 per cent larger than in April
and 2.1 per cent greater than in Maya year ago. Weather
conditions during the month had a retarding effect upon the
purchases of some classes of merchandise. The seasonally
adjusted index of department store sales, as compiled by
this bank, was 75.3 per cent of the 1923-25 average for May,
which compares with 80.3 per cent in April, and 73.8 per
cent in May, 1934. Distribution of merchandise during the
first five months of the present year was 4,.3 pel' cent greater
than in the like period of 1934,.
Retail
Trade

A seasonal decline of 4,.5 pel' cent was reflected in the
dollar volume of merchandise held by reporting stores on
May 31, but stocks continued 2.7 per cent greater than on
the same date a year ago. The rate of stock turnover during
the first five months of 1935 was 1.27, as compared with
1.26 in the same period last year.
Collections on open accounts evidenced a small increase
during May, while installment account collections showed
a slight .decline. The ratio of collections to open accounts
outst~ndmg .on May 1 was 40.7 per cent, as against 39.6 per
cen~ m Apnl, and 39.5 per cent in May, 1934. Collections
on msta~lment acco~ts declined from 15.0 per cent in April
to 14.6 m May, whleh Compares with 15.1 per cent in May
last year.

BUSINESS OF DEPARTMENT STORES
Total sales (porcentago):
May, 1935, compared with May, 1934 .. . ......... .
Dallos
Fort Worth
May, 1935, compared with I\pril, 1985 .......... : .: .. : : ::: ..................... .
+ 5.3
- 2.2
~ anuary(!lorcontago):
1 to dato compared with sarno poriod lnat yonr .... . : : : : : : : : : : : : : : : : : : : : : :
- 1.7
+12 .3
Credit sal""
8.6
+ 1.3
May, 1935, oomparod with May, 1934 ...... " ... . ....... .
May, 1935, oompared with I\pril, 1935 . . ................... : ........... . ...... ..
+10 .2
3.7
January 1 to date oompared With samo poriod lnat year . .. .. : .: ::: ::::::: : : :. : " "
- 2.5
+16.2
Stooks on hand at end of month (porcontago):
. . .. .
+12.4
5.3
May, 1935, oomparod with May 1934 . . .. . ........ .
May, 1935, compared with April, 1936 .............. : : : : : : : : : : : : : : : : : : : : : : : : : : : :
+ 4.5
Stock turnover (ratc):
- 1.9
- 4.0
- 4.6
Uato of stock turnover in May, 1934. ........ . .
Uato of stock turnoverin May, 1935 ......... :.:.:::::::::::::: .: .: ............ .
.28
.25
Unto of 8t<>ok turnover January 1 to May 31,1934 .............. :.:.::: ........ ..
.20
.24
Uato of stock turnover January 1 to May 31, 1935 ................. '" .::::: : ... .
1.41
1.05
1.47
Unt~o of May collections to open accounts recoivable outstanding May 1, 1935 ....... : : ::
1.06
39.4
RatiO of May colleotlol18 to installment aeoounts receivable outstanding May 1, 1935. '"
35 .0
Indoxes of dopartment store snles:
15.3
10.6

+

+
+

g~~~i~:l~=~;i1, f~3~ ... '" ... '" ... '" ...... '" ......... '" .'" " .'" " '"

Adiuitod-April

~9353

...................................................... .

Ad;ustcd-May
,'lD35.'.',::::::::::::::::::::::::::::::::: .............. ...... .

IndexC8 of dopartmont storo stocks'
•. . . .. . .... . '" . " .. .
Unadjusted-April, 1935 .......... " ... . .. .
Unadjusted-May 1935
.......... '" . . .................. '"
"'diusted-~pril i935 .. . ............ . ..................................... .
AdJUSlod-May: 1935: .'. : :: : : :::: :::: :: :::::::: :::::::::::::::::::::::::::::::

Co'!"melcw,l

The msolvency record In the Eleventh
Fatlures
Federal Reserve District reflected an im.
provement in Mayas compared with
Apnl, but was more unfavorable than in the corresponding
month of 1934. According to the report of Dun & Bradstreet

,

Houston
- 3.4
- 4.7
- 2.3

San Antonio
+ 8.6
+ 4.8
+ 6.4

Otbors
+ .4
.B
+ 3.6

-

Total Distriot
+ 2.1
+ .7
+ 4.3

+ 2.9
-3.1
+ 4.0

+

+ 7.5
.6
9.5

- 1.3
- 3.6
+ 6.1

-

+ 2.1
- 2.5

+ 8.2
- 8.6

+ .4
- 3.9

+ 2.7
- 4.5

.26
.24
1.27
1.18
43.1

.33
.31
1.55
1.48
48.4
18.0

......

84.1
79.7
84.1
82.2

81.7
88.5
80.9
88.5

88.1
80 .3
86.4
80.3

69.3
70.8
66.6
66.8

57.0
54.5
55.3
53.4

72.0
68.7
60 .2
68.0

51.5
49.5
50.0
48.5

51.0
48.1
48.1
48.6

.22
.22
1.05
LOB
39.7
IB . l

......
..... .
......
......
......
.. ... .
......
......

+ 5.B
.2
+ B.6
.26
.26
1.26
1.27
40 .7
14.6
BO.3
7B.3
BO.3
75.3

61.6
68.8
59.2
68.2

Incorporated, there were 30 insolvencies during the month
involving an indebtedness of $334,,699, as compared with 32
defaults in April with liabilities totaling $403,287, and 18
;failures in May, 1934,. owing $165,927.

MONTHLY BUSINESS REVIEW

3

AGRICUL TURE
Crop ConWeather conditions during the past
ditions
month were distinctly favorable to grow.
ing crops throughout the Eleventh Dist~lCt. Soaking rains have fallen in all sections with precipitahon greatly in excess of normal in the eastern half of the
district. While there are some areas in northwest Texas and
southeastern New Mexico where additional rainfall would
be beneficial, there is sufficient moisture generally to give
crops a good start. In some localities crops have been damaged from floods and in others fields have been too wet for
cultivation. Fields in many sections have become grassy and
wee?y as the soil has delayed planting operations and crop
cultivation. A period of dry sunshiny weather would be very
beneficial generally.

While the rains came too late to save the wheat crop,
production east of the plains area in Texas was increased
tnaterially. The Texas crop on June 1 was rated by the
Department of Agriculture at 37 per cent of normal with
a p~ospective production of 9,184,,000 bushels or an increase
dunng the month of 1,312,000 bushels in total yield and
1 bushel in per acre yield. There were 25,749,000 bushels
harvested in 1934,. Moderate increases were also forecasted
for Oklahoma and New Mexico. The condition of the Texas
Oat crop advanced from 61 per cent of normal on May 1 to
72 per cent on June 1, and the latter figure compares with
63 per cent a year ago . Plants grew rapidly after the rains
set in and except where rust has developed, are maturing
a good head. Harvesting is progressing in the southern half
of the State. The condition of the crop in Oklahoma, New
Mb exico, and Arizona is considerably better than a year ago,
ut it is lower in Louisiana.
Feed crops have likewise shown considerable improveMent. The condition of tame hay in Texas rose 9 points in
ay, and the 71 per cent of normal figure on June 1 was
2 points above that a year earlier. Wild hay was rated at
78 per cent of normal condition on June 1, which was 6
points higher than that last year. Prospects for hay crops
In other states attached to this district are fair to good. The
corn crop has made rapid growth in practically all sections
and a good crop is nearing maturity in much of the south1:rn half of Texas. In some localities, however, the soil has
een too wet for proper development of the plants.
The planting of cotton is about completed in all sections
a f the district except in portions of northwest Texas. Frequent rains and wet soil retarded field operations and crop
g.rowth with the result that plant development in many sechans is considerably later than usual. Chopping has progressed rapidly where soil conditions permitted, but a large
rroportion of fields are becoming weedy and grassy from
ack of cultivation . In southern Texas the plants are well
developed but stands are somewhat irregular and plants are
S~Ppy due to excessive moisture. In many sections of the
~Istrict there are complaints of insect damage and excessive
~ led ding of squares. A period of dry weather is needed
hroughout the older cotton belt for proper development of
crops.
The Irish potato crop showed little change during the
1110nth. The May rains delayed harvesting and damaged the
crop to some extent.

A marked improvement in the condition
of ranges and livestock occurred throughout the Eleventh District during the past month. Rainfall
has been abundant in nearly all sections of the district with
the result that there is good soil moisture and ample surface
water for livestock. Range grass has made excellent growth
and prospects indicate good summer grazing. Due to the
long drouth, the Trans-Pecos region and portions of counties in the western portion of the Panhandle of Texas and
eastern New Mexico still have a deficiency in moisture and
more rain will be needed to insure summer ranges. With an
abundance of pasturage in most sections, livestock have
mended rapidly and grass fattened cattle are moving to
market, particularly from South Texas. The calf crop is
poor in the former drouth area, but is fair to good in other
sections. While the lamb crop is expected to be small, the
. young animals are in fairly good condition. Late in May
wool sold freely at advanced prices.
The June 1 condition of cattle ranges and sheep and goat
ranges was rated by the Department of Agriculture at 79
per cent of normal, representing a gain of 13 to 20 points,
respectively, as compared with that obtaining a month
earlier. In each case the condition figure was one point
higher than a year ago . While Texas cattle gained 7 points
in May, the 77 per cent condition figure on June 1 was 2
points lower than on the same date last year. The condition
of sheep rose 9 points in May, and that of goats advanced
7 points. As compared with a year ago, the condition of
goats on June 1 was 2 points higher and that of sheep remained unchanged.
Livestoclc

Movements
and Prices

A marked increase in the receipts of cattle and calves at the Fort Worth market
occurred in May. Arrivals were substantially larger than in either the previous month or the same
month last year. The number of hogs yarded was noticeably smaller than in either comparative period. The receipts
of sheep reflected a large seasonal increase over April and
were moderately larger than a year ago . Receipts of sheep,
cattle, and calves continued large during the first half of
June.
The market for cattle and calves followed an upward
FORT WORTH LIVESTOCK RECEIPTS
(Number)
May
Cattle .......... .
Calves ........ ..

Roge .......... .

Sheep .......... .

May

1985
74,566
24,767
20,398
146,057

1034
48,257
18,510
37,544
140,673

Chango over
year
+26,300
6,257
-17,151
5,384

+
+

April
1935
43,447
10,005
20,740
73,697

Ohango ovor
month
+31,119
4,772
- 0,347
+72,360

+

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars por hundredwoight)
May
Beef steers .... . .... . . . ..... . ...... . . . .. . .
Stooker .teers ...... . ....... . .. . ......... .
Heifers and yearlings .................... .
Buteher cows . ......................... ..
Stooker cows ............................ .
Calves .............•.............. . .....

~:h::::::::::::::::::::::::::::::::::

Mny

April

1035
$10 .75
7.50
12 .50
8 .00
3.25
8 .65
0 .65
5 .00
8 .00

1034
$ 6.60
4 .90
7 .00
4.25
4 .50
6 .60
3 .65
5 .25
0.50

1935
$11.00

.i2:i>i>
7 . 25
8 .50
8 .75
5 .00
8 .00

MONTHLY BUSINESS REVIEW

4

trend during most of May despite heavy receipts, but prices
were weak to lower in the first half of June. Hog prices
reflected a steady though substantial advance in May and
reached a top of $9.70 during the first week of June. By

the middle of the month, the best offerings were bringing
only $9.40. Sheep and lambs met with a strong demand at
advancing prices toward the middle of May but the subsequent decline cancelled most of the gain.

FINANCE
Operations 0/
the Federal Reserve Bank

Member bank borrowings at the Federal on May 8, but $5,846,000 below those on June 13, 1934..
Re serve Bank rose gradually from
$511,000 on May 15 to $579,000 on June
CONDITION STATISTICS OF MEMBER BANKS I N SELECTED CITIES
4, but subsequently declined to $389,000
(In thousands of dollars)
on June 15. This latter figure was $122,000 lower than a
month earlier, and $194.,000 below that on the same date in
Mny 8,
Juno 13,
Juno 12,
1035
1934
1935
1934• There were 20 banks indebted to the Federal Reserve
.
$170,120
$146,485
United SLates sccurities owned .... . . . . .. . . . $106,311
Bank at the middle of June as compared with 23 banks on
80,004
55,610
All other stocks, bonda, and sccurities owned .
80,334
43,220
60,118
Loans on sCQurities . . . ... .. .. . . . .. . . . . .. . .
42,439
May 15, and 24. banks on June 15, 1934. While this bank
137,532
122,244
All othedoans . . ........ .. .. .......... .. .
136,606
180,752
made no additional advances to established industrial or
182,302
Total loans . . ...... . .. .. .. . . ...... . . . .. . .
179,045
314,769
281,005
Net demand deposilB . . ......... .. .... .. . . 325,530
commercial businesses for working capital purposes between
123,611
121,623
123,312
Time dellOllilB . . .. . . . . . .... .. ... . ... . .... .
62,506
73,914
Rcaerve with Federal Reserve Bank ..... . . .
68,068
May 15 and June 15, it increased its commitments to make
BiUs payable and rediscount~ with Federal
advances by $240,000. Investments showed no change during
Nono
None
Reserve Bank ..... .• ... .. . . . ... . .. . . . .
None
the month. Reserve deposits of member banks declined substantially during the latter part of May and early in June,
but they had risen to $112,300,000 on June 15, which was Debits to
Charges to depositors' accounts at ?an~S
$2,154,000 higher than at the middle of May, and $1,033,000 Individual
in eighteen ciLies of the Eleventh Dlstnct
greater than on the same date in 1934. Federal reserve notes Accounts
during May reflected a fur ther decline of
in actual circulation reflected a substantial increase during
2.2 per cent as compared with the prethe period, the total of $50,4..67,000 on June 15 being $3,- vious month but were 12.4, per cent larger than in the cor184,000 larger than on May 15, and $10,578,000 in excess responding month last year. All repor ting cities except o~e
of that on June 15 last year.
showed larger debits than a year ago, and there were SlJC
cities in which they were larger than in April.
CONDITION OF THE FEDERAL RESERVE BANK
(In thoUBallda of dollars)

Total eaah NlIIerves .. . ... . ............ . .. .
DiscounlB for member banks .•.. •• ...•....•
Industrial advancca ... . ............ . .... . .
Billa bought in the open market . .. .• •... •• .
United SLates securilles owned .... •. ...•...
Other InvcatmenlB . . •• ... •. •.....•.. .. •.. •
Total carninJc assclB . .............. .. .... .
Member ba reserve dellOllilB ...... .. .. •.•
Federal reserve notes in actual circulation ..•
Federal reserve bank notes in actual circulatlon •..•... •..• •••• ••. •.•. •..• •..••••

Condition of
Member Banks
in Selected
Cities

June 15.
1035
$101,077
380
1.781
122
71,475
None
73,707
112,300
50,467

June 15.
1034
$103,476
583
None
142

72,200
111,267
30,889

May 15.
1035
$ 06,049
511
1,808
122
71,475
None
73,916
110,146
47,283

None

1.425

None

7~!~!

DEBITS TO INDIVIDUAL ACCOUNTS
(In thousanda of dollars)

Abilene .........
Austin .... .... ..
Beaumont . . . . .. .
Corsicana .. . ... .
Dallaa . ........ .
El Paao . .... .. ..
Fort Worth .. . ...
Galveston .. . .. . .
Houston .. ... . .. .
Port Arthur .. ....
HcaweU .. . ......
San Antonio . . .. .
Shreveport .. ....
Texarkana' .... . .
Tucson.. .. . . . . . .
~ler . ........ ..
nco... .... .. . .
Wichita Falls . . ..

May
1935
$ 5,152
20,932
18,654
2,120
150,604
10,810
63,654
18,011
144,138
5,857
2,335
58,024
20,021
4,800
0,351
11,482
10,536
11,051

Percontage
May
chnugc over
year
1934
$ 4,541
+ 13. 5
17.550
+ 70 .5
15,282
+22 .1
2,268
- 6.1
156,807
+ 1. 8
16,838
+ 17 .7
54,547
+ 16.7
16,021
+ 18. 0
124,231
+ 16.0
4,954
+ 18. 2
1,086
+ 17.6
52,822
+ 0 .8
28,450
+ 2. 0
4,712
+ 2. 1
8,135
+ 14. 0
8,571
+3·1 .0
9,061
+ 16.3
11,870
+ .6

Pcrccnttigc
change over
April
month
1035
- 17 .8
$ 6,264
- 15. 1
35,269
- 1.9
19,007
- 10 .0
2,630
- 5.1
108,202
.1
10,831
- 1.9
64,005
+ 1. 2
18,683
+ 4 .0
138,602
- 7.6
6,339
+ 12.2
2,081
- 9.2
63.888
+ 12.2
25,868
- 8 .4
5,252
+ 10 .4
8,470
+ 11 .4
10,304
- 7 .0
11,331
.8
12,051

-

Reports from member banks in selected
cities, during the five-week period ending
June 12, reflected a large increase in deposits but a decline in loans and invest-- 22
Total. . .. ... $605,440
+ 12.4
$619,067
$538,670
ments. Loans on securities declined
'Inoludes tho figures of 2 banks in Texarkana, Arkansas, located In the Eighth
$781,000 between May 8 and June 12 and on the latter date
District.
were ,,$17,679,000 lower than a year earlier, While "all
other loans ,(largely commercial) reflected a recession of
'
Acceptances executed by bank s III the
$926,000 durmg the five-week period, the margin of gain Acceptance
Market
Eleventh District and outstanding on M.~
over last year ro~e to $14,362,000 on June 12, the largest
31 totaled $1,980,543, as compared WI e
figure rep~rted ~mce the current improvement set in. Investments In Umted States securities were reduced $3,818- $1,667,756 a month earlier , and only $166,367 on the sa~e
000 ~~tween ~ay 8 and June 12, but holdin s of oth~r date last year. In the case of both comparisons most of t J1
SeCUrItIes ",-ere mcreased $330,000. As comparedgwith a ear increase was shown in the volume of acceptances_based he
ago total mve~tments were $44,550,000 greater. TheY net the domestic shipment and storage of goods, whIch at t
close of May amounted to $1,802,076.
demand depOSIts of these banks rose $10,761,000 durin
the five weeks, and at th~ end ,of the period were $44,435,003
reA moderate seasonal decrease waS f
gre~ter than a year earher. TIme deposits declined $299000 Deposits of
Member Banlcs
flected in the co~bined dai~y averageb~r
durmg the current. period, but were $1,689,000 above th
net demand and tIme depOSIts ~f meDl e
on the corresp~ndmg date in 1934. The reserve depositsO~f
banks in the Eleventh District during May. ThiS aver;~,
these banks WIth the Federal Reserve Bank total d $68
068,000 on June 12, which was $5,502,000 in excesseof tho;~ amo~nted to $798,311,000, which compares W!th $800,1934,
000 m the previous month, and $708,920,000 III May, 1

MONTHLY BUSINESS REVIEW
The amount of increase over the corresponding month last
year was the largest reported in several months. While most
of the reduction from April occurred in the net demand deposits of reserve city banks, the time deposits of these banks
rose slightly.

5

DAlLY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
Combined Totol

Reserve City Banks

Country Banks

Net demand Time Net demand Time Net demand Time
deposits deposits deposits deposits deposits deposits

Savings
Deposits

Total savings deposits reported by 124
banks in this district on May 31
amounted to $150,490,54.0, as against
$14.9,4.61,805 a month earlier, and $137,023,848 on the same
dat~ last year. May was the ninth consecutive month during
whIch an increase in the amount of savings deposits was
reported. All major reporting cities continued to show substantial gains over a year ago, and all except one participated in the increase as compared with April 30.

May,
Juno,
July,
Aug.,
Sept.,
Oct.,
Nov .•
Deo.,
Jan .,
Feb.,
Mar.,
April,
May,

1034 .. . ... $516,090
1034...... 519,465
1034 .... .. 621,333
1034...... 527,054
1934...... 557,318
1034. . .. .. 583,558
1034...... 596,441
1034...... 507,645
1935...... 590,459
1935...... 600,125
1935...... 605,672
1035 ...... 606,348
1036...... 603,787

S192,830
102,712
107,600
106,825
194,215
104,618
106,512
105,380
196,436
107,155
193,304
103,840
194,524

S253,752
256,456
255,210
260,061
275,831
287,250
202,685
286,065
279,110
289,057
204,281
200,163
206,770

$108,146
100,607
112,632
111,661
100,110
100,450
111,082
111,630
11 3.255
112,686
112,019
112,252
113,128

S262,338
263,000
266,123
266,003
281,487
206,308
303.766
310,680
311,349
310,168
311,301
307,186
307,017

584,684
83,115
85,058
85,274
85,105
85,169
85,430
83.750
83,181
84,560
81,375
81.607
81,396

SAVINGS DEPOSITS
May 31,1934

May 31,1035
Number of

Number of

Amount of

banks

dopositors

deposits

reporting

g~~1':0nt .......•. . ...•.. .

~I Paso:::::::::: :: : : : : :::

Gort Worth ................
aalveston .................
P ouston .... ........... . ...
s~~tlrth,\r ...............
Sb ntomo .... ...........
W~~~epart. ............. . .
Wieh·i··· · ········ · ·······
All "'Falls ..............
otbcrs ... . .............

3
9*
2
3
4

II-

2
63
3
3
75-

sBvings

8,033
77,019
12,188
34,661
16,030
66,072
5,244
17,554
22,064
10,883
6,082
50,643

---

sRvings

>\pril 30, 1935

Amount of

Poroentago o~ange

depOSits

Number of
savings
dopositors

suvings doposits

savin~s

over year

8,270
74,588
10,720
32,986
16,677
66,684
5,016
16,020
22,703
10,468
5,681
47,762

S 3,545,620
25,248.080
5,504,265
11,101,164
10,113,452
31,103.676
2,074.379
16,27 1.220
10,616,01 2
6.440,361
2,988,220
25,294,173

124
328,273
1150,400,540
Toto\. ..........
-Only 8 banks in Dallas, 10 in Hnuston, 5 in San Antonio, and 67 in "1\.11

S 3,273,263'
24,244,130
4,521,189
10,005,310
9,655,561
28,057,021
1,8M,525
14,418,701
10,078,855
5,886,202
2,762,410
22,176,273

$137,023,848

ID

+ 8.3
+ 4.1
+23.7
+10.0
+ 4.7
+11.2
+11.9
+12.8
+ 5.3
+ 0.6
+ 8.2
+14.1

317,664

Number of
savings
depositors

+ 0.8

--oth~rs"

8,871
77,075
12,100
34,506
16,864
65.801
5,216
17,371
22,062
10,870
6,072
50,700

--327,616

Amount of
savinp'
deposits

Poreentage ohange
over month in
8IIvings deposits

S 3,518,768
25,137,584
5,436,526
10,991,053
10,015,100
30,761,208
2,060,152
16,266,305
10,814,096
6,418,843
2,014,297
25,127,783

+ .8
+ .4
+ 2 .0
+ 1.0
+ 1.0
+1.4
+ .7
0 .0
- 1.8
+ .5
+ 2.5
.7

$140,461,805

.7

reported the number of savings depositors.

JUNE DISCOUNT RATES
Dallas
nate charged oustomers on primo commereial papar such as that now eligible for
I1.a rediscount under the Federal Reserve Act ... . . ... ....... ................... .
D_ te charged on loans to other banks secured by bills recoivablo ........ .. . ....... .
, ....to. on loana scoured by prime stock exehango or other ourrent collateral (not
lDeluding loans placed in other m.rkets through correspondent banks):
Dem.nd ...... . .... . .. . ....... .. ......... ..... ... . . ....... . ..... .
n te
Time ............................................ . ..... . .. ... . . .
charged on commodity paper seeured by warobouso recoipts, eto .............. .
to on cattle loans ......... .. ..... . ...... . ........ ..... . ................... .

n:

3-6

+
+

Prevrullng rates:
EI Paso

Fort Worth

Houston

Sao Aotonio

6-8

Waco

5

5

5-7
4-6

4- 7
5-6

6-6
6

5~

5

6-8
6-8
6-8
6-8

5-8
5-8
6-8
6-10

4 7
3-7
7-10

4~7

6-8
6-7
6-8
7- 10

6-8
6-8
5-6
7-8

5-6
3\-!l-6

None

3-6

INDUSTRY
Cottonseed
PrO
ducts

Statistics on cottonseed oil mills in Texas
and the United States in May reflected a
seasonal curtailment in operations as
cOlllpared with the previous month, and the crushings of cottonseed as well as the production of products at all United
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS

C'(ttonaecd received at milia

g+tO"n~cCd ~~;I~b~d'(t~~~i:::::

Texna
United States
Auguat I to May 31
August I to May 31
This senaoa Last season This season Last aeason
713,764
702,310

1.310.360
1,200,805

3,361,400
3,400,544

4,063,021
3,963,054

'( ousced on hand May 31
118,251
174,526
320,388
C tdo na).... ................ .
24,106
Cr~ coil producod (poundB) ... 220,735,377 382,214,240 1,064,007,2161,241,362,503
602,351
1,553,871
1,801,706
aD lie aud meal produced (tons)
378,865
353,176
877,773
1,056,145
L'u produced (tons).. .. . . . . .
212,880
Ibal~ produoed (rllnning

t!

~~s~;; i.~;ld· M~};si; " " "
Cr~

e oil (I)ounds) ... . ...... .
aa lie aud meal (tons) ........ .
L'\~ (tona) .. . ............. .
In rs (running bales) .... .. . .

170,303

222,010

771,442

750.042

4,488,060
38,048
24,325
30,710

24,005,160
47,263
23,863
33,045

20,406,844
241,908
105,075
127,058

56,546,688
210,637
56,000
132,123

States mills were smaller than a year ago. Mill stocks of
cottonseed reflected a further decline due to the excess of
crushings over receipts. Holdings of all classes of cottonseed
products declined between April 30 and May 31 at both
Texas and United States mills, but supplies of hulls and
linters were greater than on May 31, 1934,.

Textile
Milling

The domestic consumption of cotton in
May, while slightly larger than in the
previous month, was considerably under
that in the corresponding month last year. Total consumption for the month amounted to 469,250 bales, as compared
with 4,62,844 bales in, April, and 519,299 bales in May, 1934..
For the past three months the amount of cotton used by domestic mills has been substantially smaller than in the corresponding months of the previous year. Consumption during the first ten months of the current season amounted to
4,,566,121 bales, which was 8.3 per cent under that of the
same period of the previous season.

6

MONTHLY BUSINESS REVIEW

The operations of reporting textile mills in Texas followed the same trend as those of all United States mills.
The consumption of cotton and the production of cloth
increased as compared with the previous month, but were
considerably below those of a year ago. While unfilled
orders on hand increased between April 30 and May 31,
stocks of finished goods declined. Both stocks and unfilled
orders were smaller on May 31 than a year earlier.

COTTON-GALVESTON STOCK STATEMENT
(Balos)

For Great Britain . ... ....... . .... . . .......... . . . .. . . .
For France . . .... . . . .. . . . . . ..... ... .. . . .. . .. . . . .... . .
For othor foreign ports ... ... . ... .... . . .. . .. ..... ..... .
For coastwise ports ... .. ..... . ... . ....... . . . ... .. .. . .
In oompres,es and depots .. ..... . ..... . .. .. . .. ... .... . .

May 31,
1935
3,700
1,000
16,100
800
207,604

May 31,
1034
2,000
3,000
28,700
1,000
612,941

Total. .. ... . . .... ..... . .. ..... . ... . . ..... .

310,201

647.64 1

COTTON CONSUMED AND ON HAND
(Bales)

Cotton-growing states :
Cotton con8umed . ... . .... . .
On hand May 31 inCOllBuming establishments.
Public 8torago and oompr08Bes ... . ....... . ....
United States :
Cotton con8umed . .. .... . .. .
On hand May 31 inConsuming establi, hments.
Publio ,torago and compr08Bes . . ... . . . ..... .. .

May
1935

May
1034

378,900

416,440

August 1 to May 31
This season Last season

1,099,815

0,393,416
610,290

3,067,451

760,847

460,250

3,662,710

6,230,104

4,566,121

4,977,040

SEASON'S RECEIPTS, EXPORTS, AND S'rOCKS OF COTTON AT ALL
UNITED STATES PORT&-(Bales)

070,130

1,422,165

0,560,247

6,660,165

Receipts . . .. . . . ... . . . .. . .. . . . .. . . . . . . . . . . .. •..•... . . .
Exports: United Ki ngdom .. . .... .. .... . ... . .. ..... .. .
France .... . . . . .. ... . . . ... . . .. . . . .. .. . . . . .. .
Italy ... .. . . .. .. .... .. ..... .• . . . . . ... . . .....
Germany .. . ... .. ........ . ... . ...... . .. . ... .
Other Europo . . .... .. ... . ........ . .... ... .. .

~ir~~he; ~~~~·t~i';'·. : : : : :: : : : :: : :: :: : :::: :::::

Total foreign ports ...... . ..... .. .. . . . . .... . ..... .. .. .
Stocks held at all United States ports, May 31 . . . ...... . .

The trend of exports of cotton through
the ports of Houston and Galveston continued very favorable during the past
month. Shipments from the former port again reflected a
contrary to seasonal increase over the previous month, and
were maintained on a level substantially higher than a year
ago. At Galveston exports were slightly smaller than in
cither comparative month, but the rates of decline 'were
much smaller than those recorded in earlier months of the
season. Exports during the current season were substantially
below those in the corresponding ten months of the previous
season . Receipts of cotton at these ports during May were
on an unusually low level, but at Houston they reflected a
contrary to seasonal increase over the previous month.
Stocks of co tton on hand at both ports on May 31 were seasonally smaller than a month earlier, and were only onehaH as lar ge as on May 31, 1934.

August 1 to May 31
This ,cason Last sea,on
4.305,723
7,4 11.367
659,838
1,160,973
333.302
691.990
412, 843
601,984
286910
1,227.656
743' 126
984,006
1 375:296
1,037.020
'363 447
506.740
4,174:702
6,709,369
1,090,614
2,833,2 65

Cotton
Movements

SPOT COTTON PRICES- (M iddling Basis)
(Cents per pound)

New y ork .. . ..... .. ... .. ... . ...• . . ... . ..
New Orleans ... . ... . .. ..... .. ....... ... . .
Dallas . . . . ... . .... . ........ .. .... . . .. . . .
HO
u8ton ...... . . . .. ... . . .... .. . . . . .. . . . ..
Galveston .. . .. . ... . ..... ...•. .. .... .... .

-

June 15,
1935
12. 00
12. 10
11 .75
11 .05
11 .95

May, 1035
High
Low
12.50
11 .30
12.57
11 .40
12.25
ll . 1O
12.50
11 .50
12.50
11 .35

.
. In IS I I thiS
Crude 011 productIOn. th' d' Strict during May totaled 34,,371,250 barre sf the
volume being 1 329 250 barrels greater than th atho arne
'n
s
previous month, 'and ,213.'900 barrels. h'Igh er th an 1. fIt eto the
month last year. The gam over ApI'll was ?ue
only
longer month, as the daily average output mcrease d Xuring
~xports of cotton from all ~nited States ports in May, 7350 barrels. The number of new wells complete 1314
while. seasonally smaller than In April and slightly lower the month, after having risen fro m 8 76 m Ma~c h to figure
'
'
. ,
th.an m May, 1934" showed a more favorable comparison in April amounted to 1,005 in May, and the . attel onth !I
~Vlth those a year ago than Was the case in any of the preced- compares with 899 reported in the correspondmg leted in
mg months of the current season. Total shipments were 278 _ year ago. The flush yield fr om successful we ll~ cor:~ initial
977 bales as ?ompared with 323,155 bales in April, and May amounted to 2,975,328 barrels, as agamst
284,,764. bales In May last year. Exports during the first ten flow of 3,807,388 barrels in the preceding month.
months of the current season averaged 38.3 per cent below
. crease
those of the corresponding period of the previous season.
The daily output from fields in Texas refl ected an m unted
of 5,000 barrels from Apn'1 to May, wh' h was aCCOBo\~lC
t
for by the north and east-central sections of the Sta e' the
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
in
ever, similar declines were repor ted from these adea~ion of
(Bales)
preceding month. Sou th Texas registered a ~'e Ut~le gai1l
May
May
1,850 barrels, which was somewhat lar ger t an
August 1 to May 31
1036
1934
~eCcipts ... . . . . . . ..... . .. .. .
§xporta . .. , . . . . ...... . .. .

tock., May 31. . ......... : : :

17,031
87,174

84,066
05,061

This season Last season
923,183
2,169,609
1,115,472
1,056,065
319,204
647,641

COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)

~
ocoipts ...... . . . ... . . . ..... .

Soc , May 31········· ··· .. .
t'tts ···· ......... .. ···

May
1035
20,408
142,060

May
1934
23,756
03,227

August 1 to May 31
This season Last season
1.066,200
2, 106,655
1,296,476
2,304,238
534,181
1,003,712

Petroleum

d1ldb

______________~O~I~L~P~R~O~D~U~C~T~I~ON:- :a:rr~01~8)~______- - ____
~(B

North Toxas . .... .. ......... .
Central West Texas .. . . . .. . .. .
East Toxas . .. ...... . .. . .... .
South Texas .. ....... . ...... .
Texas Coastal.. .. .. . . . ...... .

May, 1935
To1al
Daily Avg.
3,757,200
121.200
176,700
5,477.700
15,427,150
497,6tO
69,800
1,853,800
179,350
5,559,850

Increaso or decrease ovor
April, 1035. Avg.
Total
Dally
+ 211 ,200
+ 170,700
+3 850
+ 613,150
J'850
+
4,300
:: '100
+ 176,350 _ _

+3'm

Total Texas . ... . .. . 32,075.700
Now Mexico. .. . . . ....... . . .. 1,579.450
North Louisiana. . . ... . .. . . .. .
71 6,100

1,034.700
50,950
23, 100

+11s4.7Oo _ _
++~:~1~0~0
+ '118,450
+ 26,100

Total District . .. .. . 34,371, 250

1,108.750

+ 1,329,250

+7,350

7

MONTHLY BUSINESS REVIEW
shown in April. Production in both New Mexico and North

~ouisiana continued its upward lrend during May, although
In the latter case the amount of increase was very small.
,..-.

MAY DRILLING RESULTS

~ortb TexllS ...... . ........
E::r{\1 Weat Texna .........
exllS . . . .............
T uth TexllS .. ... . ... .. . . ..
exna Conatal.. . . . .........

So

Complations
219
88
441
132
82

P roducera
134
51
418
80
50

GIIS
Wells
3
2
2
7

Failurea
82
35
21
45
23

Initial
produetion
50,416
17,958
2,782,358
21,863
24,718

962
23
20

742
15
7

14

1I1
Slana . ••.•••••.••

5

206
8
8

1,005
1,314

764
973

19
44

222
297

PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
(In thousands of barrels)

2,897,313
77,370
645

I
t .
MayI to l ns, d'J8rtot ..... . .•.
A
pr. totals, d.str.ot .. ... , .. .

compared with 347,000 barrels in April, and 297,000 barrels in May last year. Shipments of cement during the month
were 2.7 per cent greater than in the preceding month, but
4,.5 per cent less than in the corresponding month a year
ago. Stocks on hand May 31, which amounted to 697,000
barrels, showed a further gain over those a month earlier
and a year ago.

2,075,328
3,807,388

N

Total Texna .....

N~~~~i~o..... . ..........

-

May
1935
Produotion at Texna mills . . .. . 355
Shipments from TexllS mills . .. . 340
Stocks at end of month at TellIS
mills ... . ........ . ........ .
697

Peroentage
ohange over
May
April
1934
1935
+19 .5 + 2.3
- 4.5 + 2.7

January 1
through
May 31 ,
1935
1,495
1,467

Peroentage
change over
yenr
- 4.1
- 5.7

+25. 1 + 2.2

CRUDE OIL PRICES

Building
~ox~r COlIStal (34 gr. and above) .. . .... . ... '.' .... .. •...
l/r
or

-

tl:Texna (40 (34 and nnd above) .......................
~r.
above) .... .. ....... . ..... . • .
Louisiana
gr.

Junr. 7,
1035
$1.1 2
1. 03
1. 08

Juno 8,
1934
$1.12
1.03
1.08

(Oil statistics eompiled by "The Oil Weekly", Houston, TexllS)

Cement
Operations of Portland cement mills in
th
Texas reflected a further increase during
e past month. Production amounted to 355,000 barrels, as

The valuation of building permits issued
at principal cities in the Eleventh District during May amounted to $2,311,94,5, which was 23.6
per cent under the large April total, but exceeded that of
May, 1934, by 12.5 per cent. The decline from the previous
month was not general, as eight cities reported a larger
valu ation than in April. The valuation of permits issued at
reporting cities during the first five months of 1935 was
114,.7 per cent greater than during the same period of 1934,
and exceeded any similar period since 1931.

BUILDING PERMITS
May, 1935
No.

t~illo . ..... .
In ........ .

Ulnont

us Ch~iBti : :

os .........

W .....
.... ....
orth

s't';~n ......

Arti.;;r.'.': :
Antonio. '"
~~~~rt .....
hitaFnlis : : :

.

Total. ...

~

Valuation

May, 1934
No,

------27 $ 25,211
19
158
11 5
76
433
56
142
120
301
76
524
130
27
16

658,030
61,843
72,275
304, 105
24,747
11 5,200
43,811
644,974
29,057
201,901
72,4 17
38,567
19,7 17

73
90
32
445
85
78
134
211
37
140
212
22
47

April, 1935

over year

Valuation
$ 13,918
58,335
46,9 11
16,590
256,029
28,413
76,250
28,295
1,263, 190
14,340
55,956
132,661
33,440
31,067

-- - - - - - - - 2,201 $2,3 11,945 1,575 $2,055,395

IncrellSo ovcr ono thousand por cont .

Percentage change
valuati on

.

+ 81.1
+ 31.8
+335.7
+ 18.8
- 12.9
+ 51.1
+ 54 .8
- 48 .9
+ 102. 6
+261. 0
- 45 . 4
+ 15.3
-\36.5
+ 12 .5

No.

Valuation

10 S 20,030
134
203,106
46,008
148
41
28, 185
420
301,596
64
629,491
120
556,208
126
63 ,925
270
503,580
24,481
80
1,806 . 375,070
132,635
133
41
33,647
16
26,509

----3,427 $3,024,570

January 1 through May 31

Percentage ohange
valuation
over month

1035

1034

No.
+ 25.8
+124 . 4
+ 34 . 4
+156.4
.8
+
- 96.1
- 79.3
- 18 .8
+ 28 . 1
+ 18 .7
- 46. 1
- 45 . 4
+ 14.6
- 25 .6

---

23 .6

Valuation

No.

128
706
573
280
2,025
235
533
543
1,263
347
4,205
710
140
128

S 105,634
3,084,873
208,336
214,465
1,424,634
73 1,897
1,188,447
359,948
2,43 1,936
133,816
1,080,865
514,504
177,229
166,025

01
340
414
11 6
1,937
184
397
587
904
196
656
742
100
130

S 143,030
270,945
100,719
135,854
1,068,489
120,520
316,070
177,321
2,240,715
62,368
308,706
337,036
163,948
60,656

11,906 $11,823,509

6,803

S 5,507,376

Percontage ehange
valuation
over pcriod

Valuation
-

.

26.1

+106.8
+ 57 .9
+ 33 .3
+507.2
+276.0
+103.0
+ 8.5
+114.6
+250.0
+ 52 . 2
+ 8.1
+175.2

--+114 .7

8

MONTHLY BUSINESS REVIEW

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board as of June 24, 1985)

There was a further slight decline in industrial production in May and factory employment and payrolls also
showed a decrease. Activity in residential construction continued to be above the level of a year ago.

000,000 bushels. Domestic stocks of wheat have been mater·
ially reduced this season.

PRODUCTION AND EMPLOYMENT

Total volume of freight-car loadings increased in May by
about the usual seasonal amount. Coal shipments showed a
marked increase while loadings of miscellaneous freight
declined. Dep~rtl~ent. store s~les, as measured by the Board'f
seasonally adjusted mdex, mcreased from 73 'per cent 0d
the 1923-25 average in April to 76 per cent m Mayan
were at approximately the same level as a year ago.

Volume of industrial production, as measured by the
Board's seasonally adjusted index, declined from 86 per
cent of the 1923-25 average in April to 85 per cent in May,
which was the fourth consecutive month of gradual decline
from the recent high level of 90 in January. At steel mills
output declined somewhat in May and the first three weeks
of June, as is usual at this season. In the automobile industry, where output this spring has been at a level substantially higher than in other recent years, production
showed a marked decline in May, reflecting in part the
effects of a stl·ike. At cotton mills there was little change in
activity, while at woolen mills production increased further
contrary to seasonal tendency. Production of shoes declined
seasonally. Output of coal, which has fluctuated widely in
recent months, reflecting partly developments in the labor
situation, showed a marked increase during May and the
early part of June. Factory employment and payrolls declined between the middle of April and the middle of May.
Decreases in employment were reported for the automobile,
radio, lumber, clothing, cotton, silk, and shoe industries,
while at woolen mills employment increased and in many
other lines little change was reported. Value of construction
contracts awarded, as reported by the F. W. Dodge Corporation, was about the same in Mayas in April. Residential
work continued in excess of a year ago, while the volume
of contracts for public projects was smaller than in the corresponding month of 1934. Department of Agriculture estimates based on June 1 reports indicate that conditions for
wheat, oats, barley, rye, hay, and pastures were at the tenyear av~rage for 1923-32, in contrast with conditions a year
ago, whIch were unus~ally poor as a consequence of a prolonged drouth. The wmter wheat crop this year is estimated
to be somewhat larger than last year and with a considerable in.crease indicated for spring wheat, present conditions,
accordmg to the Department of Agriculture, suggest a total
crop of about 670,000,000 bushels as compared with 4.96,000,000 bushels last season and a ten-year average of 828,-

DISTRIBUTION

COMMODITY PRICES

The general level of wholesale prices, w~ich was 80 ..3 per
cent of the 1926 average at the end of Apnl and also m the
week ending May 25, had declined to 79.8 per cent by the
week ending June 15, according ~o the index o! the Burea~
of Labor Statistics. Grain prices decreased conSIderably dUJ
ing May and the first half of June. Cotton prices: after a
sharp decline at the end of May and a subsequent mcrea~e,
also were lower in the middle of June than at the begmning of May. Prices of commodities other than farI?
products and foods as a group advanced slightly during tIlls
period.
BANI{ CREDIT

During the five weeks ending lune 19 reserve balance
f
of m~mber banks in~reased by $1:5,000,0~0 as a result °h
gold Imports, offset m part by an mcrease m Treasury cas f
and deposits with the reserve banks. Excess reserves 0
member ~anks on Ju~e 12 were abo~e $2,500,00~,000
the first hme, but declmed somewhat m the followmg wee
At reporting member banks in leading cities there was a~
increase of $54,0,000,000 in net demand deposits in the f?uJ
weeks ending June 12, due in part to gold imports. Tl~O
deposits declined by $150,000,000 of which $70,000,0 t
represented a decline at New York City banks conseq~e~.
upon a ruling of the New York Clearing House in prOh1?lt
ing the payment of interest on new time deposits matunn~
in less than six months. Total loans and investments of re
porting banks showed no important changes. Short terJ1l
open market interest rates continued at low levels in May
and the first half of June.

fr,