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Monthly Business Review
OF

THE

FEDERAL

BANK

RESERVE

OF

DALLAS

~~==========================================================

Volume 24" No.5

Dallas, Texas, July 1,1939

Thi s copy is r eleased for publication in a fternoon papers--

J une 30

~===================================================================
DISTRICT SUMMARY
Collections showed a further improvement during the month

Distribution of merchandise at wholesale and retail in the
Eleventh District increased from April to May and was subs.ta'ntially larger than in May, 1938. Daily average production of crude petroleum declined during May and the first
~lf of June, but was at a level about 8 per cent higher than
~ the corresponding period last year. Drilling activity durIng May was nearly one-third lower than a year earlier. Although the value of construction contracts awarded was 13
er
Ph cent below the April volume, it was 17 per cent above
t at in May, 1938. Conditions in the agri~ultural and livestock industries have been greatly improved by heavy rains
~hroughout most of the district. The loans of weekly reportIng member banks on June 14. were slightly lower than five
Weeks earlier.
BUSINESS
. Consumer demand for merchandise at department stores
this distriot reflected a considerable expansion during
I ay. Although buying was stimulated to some extent by
c earance sales, there was a heavy demand for seasonal merchandise. Sales were 9.4. per cent larger than in April and
eXceeded those in the corresponding month last year by 7.4
per cent, the latter increase being the highest recorded for
a year-to-year comparison since January, 1938. The increase
ver
°h last year, however, was occasioned in part by the fact
t at May tihis year had one more business day. On a seaSth.i0~ally adjusted basis, the trend in depail·tment store sales in
. s. district during the first five months of 1939 has been
slilular to that in the same period of 1938. In each year the
trend was down.w ard from January through April, then
~rn~d upward in May. The decline from January through
pi'll was less marked this year than in 1938 and the improvement in May was not as pronounced as ~ year earlier.
As a result, this bank's adjusted index of department store
~les stood at 104.7 per cent of the 1923-1925 average in
ay as compared with 103.6 per cent in April and 102.5
per cent in May, 1938. Total sales during the first five
months of 1939 were 1.2. per cent larger than in the corresPO~ding period of 1938 and the highest for any similar
pel'lod since 1929. In the first two weeks of June sales were
at about the same level as in that period last year.
Inventories of reporting department stores declined 6.9
Per cent during May and at the close of the month were 1.3
Per Cent lower than a year eal:lier. The rate of stock turn~er during the first five months of 1939 was slightly higher
an in that period of 1938, reflecting the increase in sales
and a decrease in average end-of-month stocks. The rates of
~ol1ections on regular and instalment accounts were higher
In May than in April this year and May last yeal'.
. Distribution of merchandise through! wholesale channels
In this district reflected a substantial upturn during May. The
~ornbined sales of 82 reporting firms in nine lines of trade
vere 6 per cent greater than in the preceding month and
~lCceeded those in the corresponding month of 1938 by 11
er cent. Increases over both comparative months were
l'egi'stered by all reporting lines of trade but the most proltOllnced improvement was in the distribution of machinery
~nd equipment. Inventories of reporting firms declined about
per cent dW'ing May and at the end of the month were 3
per Cent smalleil" than on tihb cOl'1'esponding date last year.

M

and were better than in May last year.
The data compiled by the' Bureau of Business Research of
the University of Texas showed that employment j:n Texas
rose 0.6 per cent from April to May and was 2.8 per cent
higher than in May, 1938. Although payrolls increased 2.3
per cent over the' preceding month, tihey were 0.6 per cent
lower than a year earlier. Factory employment and payrolls
were at the highest levels of the year.
Commercial failures in the Eleventh District declined
fwther in May and were fewer than in any other month of
the current.year. The 26 firms defaulting in May had liahillities aggregating $370,000.
AGRICULTURE
Since the first of May heavy rains have fallen over most
of 1!he Eleventh District, and in consequence, the outlook for
crops and livestock ranges is much more promising. Nevertheless, there are still several localities where the moisture
supply is inadequate due eiither to the light precipitation or
to the accumulated deficiency of moisture resulting from the
extended drouth. The situation in central-west, south and
southwest Texas is greatly improved, but in a considerable
pOltion of those areas additional moisture would be beneficial and a prolonged period of favorable weather will be
necessary to overcome the effects of the extended drouth.
Some parts of~he territory received heavy rains in the third
week of June. There are some areas in northwestern Texas
and southeastern Arizona where moisture conditions are
unsatisfactory_
The Department · of AgricultW'e's estimates, as of June 1,
for wheat production in Texas, Oklahoma, New Mexico, and
Arizona were unchanged from those of a month· earlier. The
indicated yield per acre for the 1939 crop is higher than in
1938 for Texas and New Mexilco and the same as a year ago
in the other two states_ The estimated production for Texas
was placed at 30,860,000 bushels as compared with a harvest
of 35,046,000 bushels in 1938. The crop deteriorated somewhat during the early part of May in portions of the Panhandle but local rains later in the month were beneficial to
the crop in some areas. The condition of the oat crop showed
relatively little change during May, but the June 1 condition
in Texas and Oklahoma was considerably lower than a year
ago. The harvesting of the crop is well advanced in Texas.
'J1he corn crop, although later than usual, has made genDEPARTMENT

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This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

30

MONTHLY BUSINESS REVIEW

2

erally good progress except in the sections affected by the
drouth. Hay crops showed considerable improvement in May,
but the condition is below that of a year ago. Rice planting
is virtually finished and the crop is reported to be in good
condition.
Cotton has made fairly good growth during the past six
weeks. Stands are fairly regular; chopping has made favorable progress where the soil has not been too wet. Rain is
needed for the germination 0· seed in the late planted fields
£
in some parts of northwest Texas. Early cotton in the extreme
south, Texas area is nearing maturity.
The peach crop deteriorated somewhat during May in
Louisiana and Texas, but prospects indicate a much heaV'ier
harvest than a year ago. The June 1 estimate for Texas was
placed at 1,884,000 bushels as compared with a forecast of
2,002,000 bushels on May 1 and a production of 964,,000
bushels in 1938. The condition of oranges was well below
that of a year ago. The Texas grapefruit groves were benefited by heavy rains in May and June. Although the set of
the fruit is relatively light in most areas, growers expect
this condition to be partially offset by good sizing. Weather
conditions during the past thirty days have been favorable
for vegetable crops in practically all sections of Texas.
Harvesting of the north Texas onion crop is well under way,
and indicated production is placed at 67,600,000 pounds,
which is one-third larger than in 1938.
Livestock ranges responded quickly tQ the improved moisture situation. The condition o, cattle ranges in Texas on
f
June 1, as estimated by the Department of Agriculture, was
5 points hlgher than on May 1, but was substantially below
that a year earlier and the ten-year average. Range conditions are very spotted throughout the sheep growing area
and. ~anges in. most of th~s. terri.tory would .be benefited b;
addItIonal mOIsture. CondltlOns III New MeXICO and Arizona
are better than at this time last year. Grazing is still very
poor in the former drouth areas. Cattle and sheep made
about average gains in flesh during the month, but animals
in the areas affected by the drouth are still in poor condition. The movement of cattle from areas with poor ranges
WHOLESALE AND RETAIL TRADE STATISTICS
, , _ _ - - - Pereent.ge ch.nge in:
,Ratio May collections
Net sales
Stocks"
to accounts outstandr M.y. 1939 from
J.n. 1 to May. 1939 from
in_g_M_.y_1_-.,
May, April,
Instal- '
May, April, May 31, 1939
1938
1939
from 1938
1938
1939
Regular
ment
Retail tr.do:
Dep.rtment stores:
+ 1.2 - 1.3 - 6.0 40.9
Tot.l11th Dist .. + 7.4 + 9.4
14.8
.1
Dallas . .. . ...... + 6.9 + 7.8
+ 2.7 - 5.8 a9.6
17.4
- 2.1 - 5.2
Fort Worth . ..... +12.3 +26.1
37.1
2.0
11.0
.6 + 2.4
Houston .. . ...... + 3.9 .1
.6
40.0
San Antonio ...•. + 6.6 + 7.8
+ .7 - 11.1 - 18 .7 46 .2
i:i:2
Other cities ...... + 0.3 +12.8
+ 2.8 -1.9 - 4.7 42.3
13.0
Indepondent stores:t
ArIZona ......... + 7.5 + 2.8
Oklahoma ....... + 3.0 + 5.9
New Mexico ..... +14.8 +12.6
Texos .........•. +10.4 + 7.3
Wholesale trade:t
Machinery, eqp't &
supplies (except
- 12.0
- 16.8 - 8.4
electrical) • • . .... +21.1 +52.0
22.0
Drygoods . ..•..•. +11.8 + 3.1
+ 4 .6 - 5.5 - 4.3 41.2
+ 1.3
Groceries ......... + a.o + 1.6
2.1 - a.7
80.5
Drugs .........•.. + 16.0 +12.8
77.4
2.4
- 1.1 - 8.a
+15.8
-2.5 - 1.2
H.rdware ........ +22.9 + 6.8
70.3
Electric.l Supplies. +14.7 +27.0
Tob.coo & prod's .. +10.0 + 2.6
+'5:2
07 ::i
Surgioal eQP't •.... +15.4 +20.0
....
56.8
Automotive suppl' No cbg. + 7.1
+ 6:8
"Stocks .t close of month. tCompiled by United St.tes Department of Commerce.

:r__

+

+

+

INDEXES OF DEPARTMENT STORE BALES AND STOCKS
(1923-25 avorage~100)
With seasonal adjustment
Without seasonal adjustment
r

Total Eleventh Dist ..
Dallos ... ......... ..
Fort Worth ..........
Houston ........ .....
San Antollio .........

Bales-May
1039
1938
104 .7 102 .5
lll . l 107 .8
121.3 112.2
101.3 103.8
88.6
84.7

Stocks-May v
1930
1038
64 .4
64 .8
67.8
65 .8
61.4
62.7
51.2
40.3
47.0
53.2

Sales-May
1030
1038
104.7 102 .5
107 .8 104 .6
121.3 112 .2
101.3 103.8
03.9
89.8

Stocks-M;;;-'
1030
1038
65.0
05.4
69.2
67.1
62.0
63 .3
52.2
50 .3
40 .5
52 .7

has been very heavy duri'ng the past three months but the
forced movement is greatly diminished. Shipments of grassfat cattle to markets have been much lighter than a year ago.
The marketing of sheep is later than usual this year, but the
movement started in volume during the latter part of May.
Sales of wool and moh:air have been active at advancing
prices.
Receipts from the sale of principal farm products in the
five states attached to the Eleventh Distri'ct during April
showed a further increase of 13 per cent as compared with
the previous month, but were 10 per cent lower than in
April last year. Government payments to farmers during
April amounted to $18,859,000 as compared with $15,758,000 in March, and $13,223,000 in April last year. Total
cash farm income in the five states, including Government
benefit payments, was 15 per cent larger than in the preceding month and 2 per cent greater than in April last year,
Total income for the four months of 1939 aggregated $189,675,000, which was 12 per cent lower than in the corresponding period of 1938.
FINANCE
The reserve balances of member banks in the Eleventh
Federal Reserve District continued to increase during the
last half of May and the first half of June, and the ave, ag e
r
for the latter period was at the highest level of the year.
Required reserves have apparently shown litde change with
the result that excess reserves have increased substantially.
Estimated excess reserves during the first half of June aver'
aged about 4,9 per cent of required reserves. Federal Reserve
Bank loans to member banks, whi'c h had declined somewhat
after the middle of May, inoreased toward the middle of
June. Total loans on June 15 amounted to $305,000 as coJ1'\'
pared with $359,000 a month earlier and $533,000 00 the
corresponding date in 1938. Federal Reserve notes in actual
circulation showed comparatively little fluctuation between
May 15 and June 15, and the total on the latter date waS
only $927,000 lower than a year earlier.
The loans and investments of weekly reporting member
banks in the Eleventh District declined $866,000 betweeJ1
May 10 and June l4o, but the total on the latter date waS
$33,703,000 higher than a year earlier. In the five weeks
ended June l4o, these banks reduced their investments in
obligations guaranteed by the United States Government bY
OASH FARM INCOME FROM BALE OF PRlNClPAL FARM PRODUCTS AND
GOVERNMENT BENEFIT PAYMENTS
(In thousands of dollars)
.----April, 1039---.
Receipts from
Govern- ,
Total receipts
.___- - - - - - . . , ment
April
April
Jan. 1 to April 30
Crops Livestock" payments
1030
1038
1030
1938
Arizona. . .. . .. $ 2,300
$ 2,468
$ 450
$ 5,227
$ 4,870
$15,524 $ 18,8~~
Louisiana......
4,543
1,844
2,023
8,410
7,836
21,817
25,7
New Mexico.. .
217
1,659
172
2,048
2,432
8,127
9, 240
21
Oklahoma. . . . .
1,009
0,326
3,989
11,324
11,570
39,503
41,6
371
Texas . . .... . ..
4,577
15,964
12,216
32,757
31,029
104,704 ~
Total. . . $12,646
$28,261
$18,859
$59,706
$58,655
$180,675
"Includes receipt. from the snle of livestock .nd livestook produots.
BOURCE: United States Department of Agriculture.
FORT WORTH LIVESTOCK RECEIPTS
(Number)
May
May
Change over
1930
1038
year
65,265
Cattle .................. .
74,824
- 0,559
Calves ................. .
20,126
26,678
+ 2,448
24,447
34,862
+ 10,415
211,209
325,272
-114,063

~~cs:P:::: :'.:::::: :::::::

April
1030
52,310
22,714
34,048
101,901

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars pcr hundredweight)
May
May
1930
1938
$10 .50
$0.50
9.50
7.65
10 .50
0.75
Heifers and yearlings .................. . .... ..... .
7.50
0.25
9 .50
8.25
0.70
8.60
: : : :: : .: : : :: ::
: :: :::: :: ::: : :
0.25
7.60

~~!k~:;~~~::::::::::::::: :::::::: ::: ::::::::::

~!~:.~.:e:o: ~ .:.:

~: ~::

$214,7 14

April
1939
$10.50
0.50
10 .35
7.25
9.25
6.85
0.50

,
r

MONTHLY BUSINESS REVIEW

8

~3,~02,000 but this reduction was more than counterbalanced eight-day shutdown and setting the basic allowable producy mcreases in holdings of direct Government obligations
a~d of other securities. The loans of reporting banks dechned by about $2,000,000 during the week ended May 17
and then showed slight increases during the subsequent four
eeks . Although total loans on June 14. were $900,000 lower
~'an five weeks. earlier, they were about $13,2?0,000 higher
an at the nuddle of January and approxImately $30,560,000 larger than on the corresponding date in 1938. The
Jounter-to-seasonal increase in loans since the middle of
anuary is accounted for by the expansion of credit in several fields of activity, which has more than offset the customary seasonal liquidati'on of loans during this period.
~lthough the expansion has occurred chiefly in commercial,
Industrial and agricultural loans and in loans on securities,
other classes of loans have also increased.
The deposits of reporting banks rose to a new high level
June 14" the total on that date being $24.,290,000 higher
t an five weeks earlier and $87,396,000 above that on the
Jorresponding date in 1938. During the five weeks ended
dune l~" these banks increased their balances with other
Fonlestlc banks by $21,431,000 and their reserves with the
ederal Reserve Bank by $4.,4.58,000. Balances with other
~omestic banks amounted to $251,265,000 on June 14, which
1~ slightly above the previous peak reached at the middle
February this year.
INDUSTRY
El The value of construction contracts awarded in the
h eventh District declined 13 per cent from April to May,
1ut the volume was 17 per cent higher t!hian that in May,
t~~8. Public. Works construction, which had declined in the
lee precedmg months, was the only class of construction
to register an increase over the April volume, but residential
and nonresidential buildjng were responsible for the gain
ov~r the corresponding month last year. The decrease in nonresidential building from April to May resulted from the
smal~er volume of privately-financed projects in the commer~lal and manufacturing fields. Despite the decline from
~pnl, the volume of awal·ds for residential building was
gher than in any other month in recent years and was 33
per cent larger than in May, 1938. It should be noted, howRver, that awards for one-family dwellings were larger in
h1~y ~han in April. During the past three years, residential
U
Ildmg in this district has shown a marked expansion. Ac~.ording to the data compiled by the F. W. Dodge Corporalon, about 50 per cent of total value of residential contracts
bW.ir~ed in Texas since the beginning of 1937 represented
SUI ding in the cities of Dallas and Houston; the cities of
an Antoni'o, Fort Worth and EI Paso accounted for 16 pe['
~ent of the total; and the remainder of the State accounted
or 34. per cent.
r~ ~aluation of building permits issued at fifteen principa Cltles in the Eleventh District showed a counter-to-sea~hnal .gain of 2 per cent in May and was 40 per cent larger
I an In the same month last year. The May volume was
'farger than that in any corresponding month in ten years.
l~e value of permits issued during the first five months of
th 39 .aggregated $37,774,,000 which was 19 per cent larger
an In the same period of 1938.
sh Daily ~verage production of c~'ude on in the United .States
E Owed httle change from ApI'll to May; whereas, In the
leventh District daily average output declined about 4 per
cent . . As compared with a year ago, production was subbtan~lally higher ,in, both this district and the United States,
. ut It will be recalled that production was reduced sharply
~ May last year. Late in May the Texas Railroad ConU11isSlon issued a revised proration order for June, requiring an

'h

°h

°

tion at 1,313,000 barrels daily, whidh is 114,000 barrels
under the demand las estimated by the Bureau of Mines. In
consequence of this reduction, daily average production in
this district during the first half of June was about 6 per
cent under the May average, but was still 8 per cent higher
than the average ~n June last year. Drilling activity in the
CONDITION OF THE FEDERAL RESJ!,RVE BANK
(In thousands of dollars)
Juno 15,
June 15,
Total cash reserves .... , ... .. .. ...... .. .......... .
Discounts for member banks ........ . ............ ..
Industrial advances .... , ......................... .
Bills bought in thc open market ........ . .. ........ .
United States Governmont seourities ..........•.....
Total earning I\8Scts ........ . .................... .
Member bnnk reserve doposits ........... ... .. ... . .
Federal Rescrve notes in actunl circulation .... ..... .
Commitments to make industrial ndvances ......... .

1989
$236,818
305
591
16
102,282
103,194
187,742
75,849

Nono

19S8
$196,847
533
828
16
97,283
98,660
166,108
76,776
92

May 15,
1939
$223,170
359
S99
16
102,282
103,256
189,586
76,314

None

CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
June 14,
June 15,
May 10,
19S9

Total loans and investments . ............. .. ..... . . $SI1,524
Totallonns. .. . . . . . . . .. . . . .. .. .. . . . . . . . . .. . . .. .. .
253,OSI
Commercinl, industrial and agricultural loans. ... ..
165,476
Open market pnper.... . . . . . . . . . . .. . . . . . .. . .. .. .
1,160
Loans to brokers nnd dealers in securities ...... ....
4,400
Other loans for purehasmg or carrying seeurities.. . .
14,837
Renl estate lonns.................. . ............
20,953
Loans to banks...... . . .. . . . . . . .. .. . . . . .. .. . . .. .
392
All other lonns.......... .. .. .... ........ .... ...
45,833
United Stntes Government direct obligations .... . . . . .
158,964
Obligations fully guaranteed by United States Govt. .
41,765
Other seeurities...... . ......... . . ...... . .........
57,744
Reserves with Federal Rescrve Bank . . . .... ........
120,656
Bnlnnces with domestic banks..... .. .. .. . . . . .. ... . .
251,265
Demand deposits-adjusted°. . . . ... . ........ . .... .
451,843
Time deposits .... . . ... ... . " . . . . . . .. . . .. . . .. .. . ..
136,491
United States Government deposits.. .. .. . . . . .. .. .. .
33,480
Interbnnk deposits ..... . .. . ............ '" ... .. . ..
212,876
Borrowings from Federal Reserve Bank. . ........ . ..
NoDe
°Includes nil demand deposits other ~han interbank and United
casb itelDB reported as on hand or in process of colleetion.

1988
$477,821
222,494
140,784
1,656
2,304
13,665
20,147
521
43,417
172,080
33,023
50,224
98,445
222,563
400,862
131,567
25,032
189,833

1939
$512,390
253,952
167,368
1,337
3,710
14,388
20,646
385
46,123
155,767
45,667
57,004
lI6,198
229,834
434,329
135,999
34.024
206,04~

None
None
States Govcrnment, less

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Average of daily figures- in tbousnnds of dollars)
Combined total
Reserve eity banks
Country banks
Gross
demand
May,
May,
Jnnuary,
Februnry,
March,
April,
Mny,

1987 ..... . ..... $1,035,183
1988 ...... . .. .. 1,073,302
19a9 ........... 1,192,054
1939 .. . ........ 1,193,160
1989 . .... . . .... 1,181,914
J939 ..... . ..... 1,178,066
19aO ...... . ... . 1.182,997

Timo

Gross
demand

Time

Gross
demand

Timc

$200,293
219,459
223,681
225,328
228,585
229,097
2al,079

$569,613
599,164
672,652
674,977
672,995
672,316
680,641

$109,344
121,153
123,805
124,975
128,122
127,813
128,498

$465,520
474,138
519,402
518,183
508,919
505,750
502,356

$ 90,949
98,306
99,786
100,353
100,463
101,884
102,581

v

DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
April
Pctg. change
May
May
Pctg. chango
1938
over yenr
1989
over month
1939
$ 8,157
Abilonc . ....... . ....... . 5 8,359
$ 8,346
+.2
+ 2.5
36,920
34,079
28,400
+23.2
- 5.3
Auetin . .. . ............. .
22,933
22,142
+ 5.4
Beaumont ........ . ..... .
23,343
+ 1.8
2,859
Corsicana .............. .
2,770
2,917
- 5.0
- 3.1
212,808
+ 8.4
227,487
Dallas ... .... .......... .
230,726
+1.4
28,142
- 1.3
EI Paso .............. . ..
27,767
24,527
+13.2
72,218
77,523
76,484
+ 1.4
Fort Worth ............. .
7 .3
22,501
- 3.4
Galveston .............. .
21,729
22,448
- 3.2
207,593
Houeton ..... . . . ....... .
208,470
192,610
+ 8.2
+ .4
8,595
8,819
9,439
- 6.6
Port Arthur ............ .
+ 2.6
3,662
+15.1
Roswell ........... ... .. .
4,215
4,Oa8
+ 4.4
66,872
San Antonio ............ .
74,140
66,691
+11.2
+10.9
39,465
40,879
+ 2.7
Shreveport . . . . ... .. .... .
41,076
+ 6.4
7,079
-8.4
Texnrkanoo ............. .
0,481
5,889
+ 10.1
11.558
11,815
+10.0
+12 .4
Tueson ........ . ........ .
12,990

+

~~~~:::::::::::::::::::
Wichita Fnlle .........•..

11,290
12,530
14,478

11,182
11,239
17,048

+ 1.0
+11.5
-18.0

10,607
12,178
15,091

+ 6.5
+ 2.9

-

4.1

Total. .... , .. .. . 5822,597
$769,452
+ 6.9
5803,917
+ 2.3
°Includes the figures of two banke in Toxnrknna, Arknnsas,loonted in tho Eighth Distriot.
SAVINGS DEPOSITS
May 31, 1989
Per~entage ch.ange In
r
~
savmgs deposIts from
Number of Number of Amount of r--------roporting
eavings
eavings
Mny 31.
AJlrii 30,
banks
depositors
doposits
1938
1939
3
9,082 S 3,896,314 + 3.a
- 1.0
Beaumont ... . .......... .
8
89,900
27,353,157 + 4.4
+.8
DaUM ..... .... . ..... . ..
2
16,920
8,213,476 + 1.7
+ .4
El Paso ................ .
3
39,217
14,004,292 + 5.0
+ 1.0
Fort Worth ......... . ... .
4
18,549
12,049,033 + 5.1
-.1
Galveston .............. .
10
74,986
30,050,826 + 4 .4
+.7
Houston ................ .
2
5,781
2,926,801
+ 11 .2
+ 1.1
Port Arthur ....... ..... .
5
24,492
19,012,611 + 8.1
+.1
San Antenio ........ ... ..
3
25,084
11,437,477 +.9
- 1.3
Shreveport ............. .
8,346
4,018,319 - 4 ,0
+.2
3
Wnoo ................. ..
a
7,548
3,016,754 + 9 . 1
+ 1.3
Wichita FaUs .. . ........ .
69
60,704
80,117,684 + 3 .8
+ .8
AU other ............. .. .

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

115

381,459

$107,590,744

+ 4.a

+

.4

MONTHLY BUSINESS REVIEW

4

Eleventh District increased seasonally in May, but the rate
of completions was nearly one· third smaller than in the cor·
responding month of 1938. Well completions in the United
States during May showed a decline of only 11 per cent from
a year ago, due to the fact that the increase in completions
in Illinois and Michigan, resulting from the intense drilling
activity, partially offset declines in other areas.
Although the production of petroleum products increased
substantially coincident with the higher runs of crude oil to
refinery stills, the heavy consumer demand more than abo
sorbed the output of gasoline, necessitating further with·
drawals from storage. Stocks of gasoNne declined 3,157,000
barrels between April 29 and June 3, and on the latter date
were 5 per cent lower than a year earlier. Nevertheless,
withdrawals from storage since the end of March have been
at a more moderate rate than in that period last year. Crude
oil stocks showed little change during the period.
The principal change in crude oil prices during the past
month was a reduction of ten cents per barrel in Kentucky
and Illinois. In the latter state, production has risen from
135,000 barrels daily at the beginning of the year to about
235,000 barrels daily at the middle of June. According to
trade reports, a substantial volume of oil from that state had
been moving at lower than PQsted prices. The gasoline mar·
ket has evidenced an upward trend during recent weeks.
The consumption of cotton by United States mills in·
creased more than seasonally during May, the amOllJ11t
utilized totaling 605,000 bales as compared with 547,000
bales in April, and 4,26,000 bales in May last year. The May
consumption was 11 per cent higher than in the preceding
month and 4·2 per cent larger than in the corresponding
month of 1938. The latter increase compares wifiIJ an aver·
age gain of 19 per cent during the first ten months of the
VALUE OF CONSTRUCTION OONTRACTS AWARDED
(In thousauds of dollars)
May
May
April
January 1 to May 31
1939
1988
1039
1930
1938
Eleventh Distriot--total.. . S 15,977
S 13,080
S 18,291
S 83,532
S 08,135
Residential. . . . . . . . . . . .
8,002
0,038
8,299
34,690
22,247
All other. . . . . . . . . . . . . .
7,975
7,042
0,992
48,886
45,888
United Stntes·-total. . .. .
308,487
283,150
330,030
1,411,048
1.043,200
Residential. . . . . . . . . . . .
133,818
83,153
114,405
532,031
313,350
All otber ... .......... ·
174,669
200,003
215,025
878,417
729,910
'37 states east of the Rooky Mount~ins.
BOURCE: F. W. Dodge Corporation.

r

Abilene ........
Amarillo ........
Austin ........ .
Beaumont ......
C~us Christi ..
D as· ........
El Paso ........
Fort Worth .....
Galveston ......
Houston ...... ..
Port Arthur ....
San Antonio ....
Shreveport ..•..
Wnoo ........ ..
Wiohita Falls ...

BUILDING PERMITS
Percentage ohange
Percentage
valuation from
May, 1080
Jan. 1 to May 31, 1939 ehan~e
,---------,
valuatIOn
No. Valuation ~May,1938 Apr., 1039~ No.
Valuation
from 1938
82
54,956 - 10.9 - 42.6
130 S 207,420 - 40.0
421,076 +256.6
55
338
1,335,420 +39.0
+ 8.7
687,872 + 71.3
266
2.8
1,214
3,877,230 +40.3
123,347 + 35.1
163
+ 11 .4
735
505,824 + 3.2
323,836 + 76.3 + 58. 1
208
752
2,277,203 +64.5
654
991,424 - 12 .0 + 4.8
3,194
0,122,080 +20.1
146,918 + 34.0 - 16 .8
HI
471
853,464 +50.8
538,024 + 55.1 + 29.1
354
1,231
2,820,593 +10.4
142
133,546 + 42.6 + 24.5
720
049,036 -47.6
521 2,359,505 + 32.7 - 28.4
2,529 12,513,480 +22 .2
74,922 - 14.0 + 14.7
138
009
413,437 -46.7
384,554 - 24.0 + 8.8
273
1,216
2,095,603 +21.8
204
982,569 +301.7 +211.0
803
2,683,746 - 4.2
173,693 + 87 .1 + 28.0
94
326
826,074 +87.1
51
115,835 + 19.5 + 94.7
200
404,383 +41.6

-

Totnl.... 3,206 $7,462,132 + 40.3 +
'Includes Highland Park and University Park.

1.8

14,408 $37,774,110

+19.1

CRUDE OIL PRODUCTION
(Barrols)
May, 1930
Inorease or decrease in daily
,----~"
average production from
Total
Daily avg. r-----------..,
production
May, 1938
April, 1930
produotion
4,835,800
155,904
+ 15,807
+
834
North TexllS ................ .
7,687,800
247,904
West TexllS ..... , ........... .
+ 31,677
- 8,533
15,785,850
+ 15,807
-40,019
500,220
East TexllS ................. .
7,534,550
+ 25,477
- 7,380
243,050
South Texas .......... .... .. .
6,051,650
224,247
Texas Coastal. .. . .. . ........ .
+ 20,052
+ 2,450
Totnl Texas .... ...... .
New Mexico ................ .
North Louisiana ............. .

42,795,050
3,282,900
2,305,050

1,380,505
105,900
74,356

+117,010
+ 7,358
4,947

-52,648
- 3,530
112
-

Total District........ ..
48,383,600
1,500,701
SOURCE: The Oil Weekly, HOUlton, Texll8.

+120,321

-50,290

current season as compared with the same period of the
preceding season. During April and the first half of May,
there was an accumulation of stocks of finished goods at
mills, reflecting the small demand from converters and dis·
tributors and the maintenance of productive activity at a
cO?TIparatiyely high level. There was also a narrowing of
mdl margms due to the rise in raw cotton prices. During the
la!ter part of Maya heavy buying movement developed and
mill sales were greatly in excess of production. Since the
latter part of May price increases have been effeoted by the
mills on several constructions and it appears that a broad
demand for goods continued during the first half of June.
Trade reports indicate that a substantial volume of purchases
has been for immediate delivery and that mill stocks of
goods have been reduced considerably. The mills reduced
their stocks of cotton approximately 117,000 bales during
May, and at the end of the month· the total on hand amounted
to 1,175,000 bales as compared with 1,581,000 bales on the
same date in 1938.
Foreign exports of cotton from the United States declined
further in May. Total shipment~ during the month aggregated only l4.3,000 bales, as against 178,000 bales in April and
193,000 bales in May last year. Exports during the first ten
months of the 1938-1939 season, which totaled 3,107,000
bales, were 4.1 per cent smaller than ij'n the same period of
the preceding season. Exports during the comparable period
of the ten seasons, 1928-1937, averaged 6,357,000 bales.
The price of raw cotton continued to advance during the
past month. The average spot price at the ten markets
reached the highest point of the current advance at 9.59
cents per pound on June 8, which was 1.27 cents per pound
above the low at the middle of April. During the past week.
the market has fluctuated within a narrow range. The rise
in prices is apparenrtly attributable in substantial part to the
shortage of spot cotton of desirable grades. In recent weeks
a substantial volume of cotton has been drawn from the
Government loan stocks.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
,--- - Texas----v--United States----August 1 to May 31
August 1 to May 31
This season
Last season
This SCaBon
Last seMon
Cottonseed reoeived at mills
(tODS).................... .
1,014,303
1,683,073
4,162,345
0,473,150
Cottonseed orushed (tons). . . . .
1,157,081
1,551,317
4,300,768
0,042,083
Cottonseed on hond Moy 31
(tons) .................... .
38,755
154,028
194,1 87
471,748
Production of products:
Cnlde oil (pounds) .... . ... . 343,816,701
457,412,540 1,352,680,308 1,867,297,9 15
Cake and mcal (tons) ... ... .
548,897
Hulls (tons) ............. .
307,702
Linters (running bales) .. .
257,013
321,888
1,070,574
1,307,554
Stock. on haud May 31:
Orude oil (pouuds) ........ . 21,750,233
0, 127,026
30,799,208
87,987,172
Cake and meal (tons) ... . .. .
40,017
01,940
280,848
173,019
Hulls (tons) ......... . .... .
42,043
173,572
39,220
113,481
Lintcrs (running bales) ..... .
155,820
555,068
121,950
579,200
SOURCE: Bureau of Ccnsus.
CONSUMPTION, STOOKS AND EXP()RTB OF COTTON
(Bales)
May
May
April
August 1 to May 31
loao
1938
1930
This season Last SellSC O
• Consumption nt:
Texas mills. ...........
11,182
97,334
10,622
0,240
102,023
United States mills. . . . .
005,353
420,149
4,856,482
546,702
5,755,39a
U.S. stocks-end of month:
In consuming estab'mts. 1,175,290
1,581,433
1,202,349
Publio stg. & comprC88CS. 12,369,578 10,051,704 12,968,205
EXJlOrts from U. S. to:
United Kingdom. . .. . . .
12,822
1,409,405
20,836
20,022
383,702
France. .. . . . . . . . . . . . . .
5,453
703,570
0,969
331,807
6,787
Italy............... ...
9,222
403,007
25,709
13,534
251,777
20,822
Germany. .. . . . . . . .. . . .
027,721
14,814
15,332
291,901
Other Europe. . . . . . . . . .
20,330
837,760
54,363
30,924
670,480
590,652
31,350
50,530
817,523
'. ::::
503,921
29,955
350,385
35,096

m:~~~

i~r~~hc~ ~o~;;t;';c8·.

Total exports.. . ...

.l:m:m

U~U~~

~~:~~~

142,577

193,002

178,225

3,106,075

5,226,83J

RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT 'lHE PORTS OP
HOUSTON AND GALVESTON-(Bales)
May
May
April
August I to May 31
This season Last Benson
1039
1088
1930
Receipts. ...... . . ..
35,007
27,943
21,1 55
1,979,471
3,077,100
Experts. . . . . . . . . . . . . . . . .
110,oJ5
118,011
116,713
2,131,344
2,727,138
Stocks, cnd of month..... 1,041,111
1,434,005
1,119,540

f~

I

~

MONTHLY BUSINESS REVIEW

July 1, 1939
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the F ederal Reser ve System)
INDUSTRIAL PRODUCTION

•...
\4()con
130

130

120

100
90

l.C\

BO

I 20

/ 'rV\
.r \
\
/~
'y./

11 0

I 10

/

_
V

70

/ \

90

80

'-'

70

00
1934

1
93$

1936

1937

1938

1939

~nde" of physica l volume of production, adjusted
Or

=

seasona l variation, 1928-1926 average
100.
By mont hs, January, 1984, to Ma y, 1989.

..."'''

FREIGHT - CAR LOADINGS

I 10

00

100

90

90

/\

90

\

.,rI
~

rv.;

V

80

70

\./ \

60

'"

'0

40

1
9l<\

1936

1
939

1
938

19 37

~~de"

of total loadings of revenue frei ght, adjusted
easonal va riation, 192 8-1926 average
100.
r B
y months, January, 1984, to May, 1989.

=

WHOLESALE PRICES

i~'--r--.----r----,---.,---,p(~IIC,(r~
00 ,--I---+--1---+--+- - j 100
90

r--t----,;;;i;;---f"'-\i ...,-f----l----i 90

70~ti-~+--+--__i---

70

60r~~-t---+---l~--t--+--j00
1935

1936

i~te"es

1937

1938

1
939

compiled by the United States Bureau of
or Statistics, 1926
100. By weeks, 1984 to
week ending June 17, 1989.

=

.

rf""" ~EMBER

BANKS IN 101 LEADING CITIES

1 t0

~

h.

• .....IONS 01 DOlI.

~

~ USOOVII~

'-'··i . . . "
~/s~

~

3.

1
0

~

-

-

./

.....
12

OTHeR StCURITIU

-

~

LDI'oNS TO DAO<tRS

ANODUUR6

193~

1
936

1
937

1
935

1
939

o

Wedne U
101 I s .ay fi gures for reporting member ba nks In
1989 eaulng cities. September 6, 1984, to June 14,
lind ~ C<,>mmercial loa ns, which include industrinl
1987 grlculturnl loans, represent prior to May 19,
, sO-called "Other lonns" as then reported .

Industrial production, which has been receding on a seasonally adjusted basis during the
first four months of this year, showed little change in May and increased considerably in the
first three weeks of June. The advance reflected principally larger output of steel and coal,
which had previously shown considerable declines.
PRODUCTION
In May the Board's seasonally adjusted index of industrial production was at 92 per cent
of the 1923·1925 average, the same as in April. Volume of manufacturing production declined
sqmewhat further, owing chiefly to reductions in output of steel and automobiles, but mineral
production increased as most bituminous coal mines were reopened after the middle of the
month.
Steel ingot production, which had been at an average rate of 52 per cent of capacity in
April, declined to 45 per cent in the third week of May. About this time prices of some types
of steel were reduced considerably and orders were placed in substantial volume. Subse·
quently, steel output increased and the current rate is about 55 per cent of capacity, approxi·
mately the level maintained during the first quarter of this year.
In the automobile industry output was reduced by about one·fifth at the beginning of
May and in the latter part of the month there was further curtailment partly as a result of a
strike at a body plant which led to the closing of most assembly lines of one major producer.
In the early part of June the strike was settled and by the middle of the month output had
risen to a level higher than that prevailing during most of May. Lumber production increased
furth er in May followin g less than the usual seasonal rise during the first quarter of this year.
Output of nondurable manufactures in the aggregate was at about the same rate in May
as in April, At woolen mills activity increased sharply, followin g a decline in April, and at
cotton and rayon mills output was maintained. Mill consumption of raw silk showed a fur·
ther sharp decline. At meat-packing establishments output increased more than seasonally,
and as in March and April was considerably larger than a year ago, reflecting a sharp increase
in the number of hogs slaughtered. Flour production continued in larger volume than is usual
at this season, while at sugar refineries there was a decrease in output.
Mineral production increased in May owing chiefly to the reopening of most bituminous
coal mines. Anthracite production, which had been in large volume in April, declined in May,
while output of crude petroleum increased somewhat further.
Value of residential building contracts, which had shown a considerable decline in April,
increased in May, according to tlle figures of the F. W. Dodge Corporation. Public residential
awards were higher owing to a greater volume of United States Housing Authority projects.
Private awards also increased but on a seasonally adjusted basis were below the high level
reached in February and March. Contracts for both public and private non·residential con·
struction declined in May, following increases in the preceding two months.
EMPLOYMENT
Factory employment and payrolls showed little change from the middle of April to the
middle of May, according to reports from a number of states.
DISTRIBUTION
Department store sales declined from April to May, while sales at variety stores and by
mail order houses showed little change. In the first two weeks of June department store sales
increased.
Freight-car loadings increased in the latter half of May, reflecting chiefly expansion in
coal shipments. In the first half of June loadings of coal increased further and shipments of
other classes of freight also were in larger volume.
COMMODITY PRICES
Prices of industrial materials, such as steel scrap, hides, wool, and print cloths, advanced
somewhat from the middle of May to the third week of June. Wheat, silk, and coal prices
declined early in June, following increases in May, and there were further declines in prices
of livestock and meats,
BANK CREDIT
During the fOUl' weeks ending June 14 total loans and investments at member banks in
101 leading cities increased by $270,000,000, following a decline of $200,000,000 in the pre·
ceding four weeks. The major increase was in holdings of Treasury notes and bonds at New
York City banks. Demand deposits increased sharply to new high levels both in New York
City and in the leading cities outside New York.
During the first three weeks of June excess reserves of member banks showed little
change from the new high level of $4,300,000,000 reached on May 24. Continued gold impo11S
largely went into earmarked gold and into balances held for foreign account at the Federal
Reserve banks.
MONEY RATES
Prices of United Stales Government securities, which had advanced sharply from April 11
to June 5, reaching a new high level, eased slightly during the next two weeks. The yield on
the longest·term Treasury bond outstanding declined from 2.49 per cent on April 11 to 2.26
per cent on June 5 and increased to 2.32 per cent on June 19. Other money rates showed
little change_