The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
I
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MONTHLY REVIEW OF BUSINESS AND
INDUSTRIAL CONDITIONS
IN THE
ELEVENTH FEDERAL RESERVE DISTRICT
FEDERAL RESERVE BANK OF DALLAS
LYNN P. TALLEY.
CHAS.
Chairman and Federal R eserve Agent
=:
c. HALL- W. J. EVANS.
Assistant Federal ReserVe Agents.
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Volume 9, NQ. 4
Delles, T exes, June I, 1924
T IU S CQ i'V nRLnA S UU F o n rUD Ll·
CA T ION I N Mo nN I N G PA1~ BRS
June 2nd
DISTRICT SUMMARY
§" IIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIII II IIIIIIIIIIIIIIIIIIII I III1111111111111111111111111111111111111111111111111111111111111111111111111111111I11111111111111111111111111111111111111111111111111111111~1I11111111111111 1 1111111111 1111111 11 111 11111111 11 111 11 11111 11 111111111111111111111111 111111 11 1111111111111111111111111111111111111111111'.:
1
5_
_
§
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I
THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
~
Bank debits to individual accounts (at 15 cities)........................
~:~~~;~nB~~:i~:~s s:;!e~~~·b·~~:··ba~i~·~.. at·~~·d·~f··;;;~~ti~::::::::::::
Reserve Bank ratio at end of month................................................
Building permit valuations at larger centers................................
Commercial faih: res (number) ........................................................
Commercial failures (liabilities) ....................................................
Oil production (barrels) ....................................................................
Lumber orders at pihe mills (per cent of normal pr oduction)
$561,719,000
$12,975,416
60.5 %
$7,319,656
56
$881,236
13 025 065
"
92 %
=
E
~
$569,683,000
$9,825,892
49.6 %
$8,951,289
74
$950,677
13 442604
" 75%
~~~
Dec.
i~~:
Inc.
Dec.
Dec.
Dec.
Dec.
Inc.
1.4 %
3~:~~
10.9 points
18.2%
24.3 %
7.3 %
3.1 %
17 points
i
I·Ie
I
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The strong recovery of retail trade was the outstanding feature of the business situation during the
past month. The sales of twenty-four Texas department stores, which in March showed a decline
of 6 per cent from the corresponding ' month of last
year, reflected a 11 per cent increase in April as
compared to April, 1923. Furthermore, April sales
showed a 7 per cent increase over March, which was
the first time, during the six years that the Federal
neserve Bank has been obtaining department store
reports, that April sales have been larger than March
sales. A late Easter was in part responsible for the
unusual volume of retail trade. The April distribution at wholesale was likewise active. While seasonal
slackening was noted in most lines, the recessions
Were not so pronounced as usual at this season of
the year. Furthermore, all reporting lines of trade
l'eflected large increase over the corresponding
lUonth of 1923.
That the merchants of this district are in an unusually healthy financi al condition is shown by the
fact that the month's failure statistics reflected a
24 per cent decrease in the number of failures and
a 7 per cent decrease in the amount of indebtedness.
The business mortality rate in this district has been
gradually declining since the fall of 1923, wh en a
large percentage of the district's weaker firms were
weeded out. The April statistics were the smallest
since November, 1920, both in the number of failures
and the amount of indebtedness.
The long postponed demand for Federal Reserve
Bank credit is now beginning to make itself felt.
Loans to member banks increased from $9,826,000
on March 31st to $12,975,000 on April 30th, and to
$14,840,000 on May 19th. However, the demand is
considerably below that of a year ago, as is evidenced
by the fact that these loans averaged $27,056,000
during May last year, as compared to an average of
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
BUILDING PERMIT VALUATIONS
Moving average of building permit valuations
at eleven cities in Eleventh Federal Reserve District.
DEBITS TO INDIVIDUAL ACCOUNTS
Monthly fluctuations in debits to individual accounts at fifteen cities in the Eleventh Federal Reserve District.
COMMERCIAL FAILURES
Monthly fluctuations in the number and amount
of liabilities of commercial failures in the Eleventh
Federal Reserve District.
LUMBER ORDERS AT PINE MILLS
Monthly fluctuations of lumber orders at pine
mills in Eleventh Federal Reserve District. Normal
production lOO-per cent.
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
3
$13,346,000 during the first nineteen days of May cotton has been necessary. Grain crops, on the other
this year, or less than half of the average loans a hand, are growing well and barring unfavorable conyear ago. Although borrowing has been compara- ditions between now and harvest promise good
tively light at the Federal Reserve Bank, customer yields.
borrowing at member banks has been active, but
Further improvement during the past month was
these banks have been able to meet the seasonal de- noted in the condition of livestock and ranges. Sheep
cline of deposits and the demand for loans largely out and goats are fat, and cattle are putting on flesh
of their own resources. It is estimated that the rapidly. Range conditions in general were never
Eleventh District's banks invested approximately more satisfactory, and give promise of excellent
$150,000,000 during the past fall and winter in bank- grazing during the summer months. Good calf and
er's acceptances, government securities, and commer- lamb crops are now practically assured.
cial or "broker" paper. Through the liquidation of
The Southwestern employment situation is genthese investments they have been able to meet a erally satisfactory. The demand for agricultul'al
large part of the spring demand for agricultural
labor is increasing, with some sections reporting a
loans. Although the information received from our shortage in supply. Although there is some slackmember banks indicates that there will be a heavier ening in textile establishments, conditions in other
demand for Federal Reserve Bank credit during the lines indicate a well balanced supply and demand.
remaining portion of the crop growing season, yet in
The attention of our readers is called to the new
view of the fact that a large number of banks will
section
added to this issue of the REVIEW covering
not find it necessary to rediscount it seems improbable that the volume of our loans will reach the pro- the Cottonseed Products Industry. This section
(which will be found on page 5) will be a regular
portion they did in 1923.
feature of the REVIEW in future, and as it covers
Farm work during the past thirty days has pro- an important industry of the Eleventh District, it is
ceeded rapidly under more' favorable weather con- hoped that it will prove helpful to our member bankditions. In some sections considerable replanting of ers and other readers.
CROP CONDITIONS
With more favorable weather conditiolls prevailing
during the past thirty days, farming operations over
the greater part of this district have made material
headway. Farmers have pressed toward rapid completion plowing and planting operations. In fact this
Work on May 1st compares favorably with that completed on that date a year ago, and in some states is
well above the ten-year average. The planting of
corn is practically completed, and, although late, is
u.p to a good stand in most sections &.nd showing
satisfactory growth. Cotton in the southern portion
of Texas is up to a good stand and the early planted
fields have been chopped and squares have begun to
appear. In other sections, except in the northwest,
planting has made good progress. Within a comparatively short time all the ground will be planted.
High wind, low temperatures, and cut worms have
done some damage to the cotton, making some replanting necessary in certain sections. The cool
nights have caused some apprehension, as it has been
conducive to the appearance of the weevil. This
insect has already begun to appear in the southern
Portion of Texas. Another disquieting factor has
been the hatching of millions of grasshoppers in the
central west. It will be remembered that the grass-
hoppers did considerable damage in that section a
year ago.
The small grains are now heading and have sufficient moisture to carry them to maturity. Although
some damage to the winter wheat was reported in
the northwestern portion of Texas, due to the high
winds and in some instances hail and heavy rain, the
crop is in good condition, exhibiting a thrifty stand
and satisfactory growth. The Department of Agriculture placed the eondition of the Texas crop at 90
per cent of normal on May 1st, which is one point
lower than on April 1st, but 12 points higher than
the ten-year average. The abandonmeTlt of acreage
this year was only two per cent of the acreage sown.
Despite the greatly reduced acreage sown to wheat
last faU, this year's yield will not be materially
smaller than that of last year. Based on the May 1st
condition figure, the yield has been estimated at
H),900,000 bushels, as compared to a harvest of
16,370,000 bushels in 1923. In New Mexico the condition of the crop was reported at 93 per cent of
normal as compared to 63 per cent of ·normal on the
same date last year. This year's production has been
estimated at 1,790,000 bushels, or about four times
the production estimated for last year's' crop. The
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
4
-abandonment in that state this year was only 10 per Cotton
The April movement of cotton
cent as compared to 50 per cent last year. The Movements
through the port of Galveston represent New Mexico crop has had plenty of moisture
flected a seasonal decline as comand weather conditions have been favorable to its
pared to the previous month, but an increase as
advancement. Furthermore, green bugs and other
compared
to April, 1923.
Galveston receipts
pests have not made their appearance.
The condition of the Texas oat crop in most sec- amounted to 68,622 bales during April as against
tions is satisfactory, but the crop in the central coun- 76,376 bales in March and 37,953 bales in April, 1923.
ties has suffered to some extent from the effects of There were 116,101 bales exported in April as comdry weather in April. The condition over the state pared to 160,805 in March and 90,180 in April a year
averaged 84 per cent of normal. The condition of ago. Receipts for the nine months' period (August
oats in New Mexico was 90 per cent of normal on
1st to April 30th) were 20.5 per cent greater than
May 1st.
While considerable damage to the Texas fruit crop during the corresponding period of the previous
resulted from hail and low temperatures during season, and exports were 17.2 per cent greater.
April, present indications are that the best crop in
The April receipts and exports at Houston were
several years will nevertheless be harvested. The slightly less than in March, but greatly in excess of
state condition was 76 per cent of normal on peaches those during the corresponding month of 1923. The
and 74 per cent on apples. The fruit crops in New
season's export movement through Houston was 46.8
Mexico were severely damaged by the April freezes.
Reports indicate a 74 per cent apple crop and a 40 per cent in excess of the movement during the corresponding period of the previous season.
per cent peach crop. Grapes were not damaged.
.. 1111111111111111111111111111111111111111111111111111111111111111111111111111111 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111'
OOTTON MOVEMEN~S THROUGH THE PORT OF
GALVESTON
April
1924
Gross receipts_____ __ _
68,622
E x ports ______ _______ _____ 116,101
St ocks , April 30th _
April
1923
Aug . 1s t to April 30th
TWs
Last
Sea son
Season
37,953 2,777,585 2,305,229
90,180 2,666,472 2,274,382
129,784
95,580
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:1
April 30.
~
For Great Britain________________________________
For France ______ __________________________ __ ________
~ For other fOl'ei g n ports____ __ ________________
;: For coastwis e ports ______ ____ __ ________________
~
In compresses ____________________ ________________ __
~
!
Total __ ______________________ __ __________ ________ __ _
19J,~00
6,000
10,068
2,000
108,216
129,784
Apl'i1 30.
LIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlIlI111111111111111111111111111111111111111111111111111111111111111111111111111111'':':
§ SEASON'S RECEIPTS, EXPORTS, AND STOOKS AT ~
~
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ALL UNITED STATES PORTS
This Season
Receipts since Aug. 1st..._______
§ Exports: Great Britain ---------§
-_=
~-
~
France ____ ____________ ____ __
r~;!~~C~n-~ -: : ::::::::::
Mexico ______________ ______
To-t al foreign ports
Stocks at all U. S. pOl'ts ,
April 30th __________________________ __
6,347,916
1,530,042
641,583
5,470,766
1,220,779
553,684
8,264
4,886,115
16,365
4,093,212
487,121
451,291
2,~~~:~~~ l'i~~:~~~
~
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~
§
_--------=1
~
=
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95,580 ~
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(Middling Basis)
I~:l~: .~ :.~,O;STlri;;TTf~!;;~~~;~~: I!I~I;i~~':~: ~
Hi;:ril.
~ New York__ _______________________________
85,503 =
~
SPOT COTTON PRICES
~
102,708
Last Season
1923300
700
4,600
2,000
87,980
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= Stocks April 30t h __
I
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31.65
192~w
2850
M~~2f6.
I
32 05 ~
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f
Cotton
Consumption
was 9.5 per cent less than during the corresponding
period of the previous season. Cotton on hand on
April 30, 1924, in consuming establishments and in
public storage and compresses amounted to 2,840,359
bales as compared to 3,463,980 bales on April 30,
1923.
There was a further decline in the
domestic consumption of cotton during April when 480,010 bales were
consumed as against 483,928 bales in March and
576,514 bales in April, 1923. Cotton consumption
during the nine months' period ending April 30, 1924,
.
-
~
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MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
5
COTTON CONSUMED AND ON HAND
COTTON GROWING S'l'A'I'ES
Aug. 1st to Apr. 30th
April
April
Las t
'l'his
1924
1923
Season
Season
Cotton consumed ............................................
Cotton on hand at end' of April(a) in consuming establishments ..........
(b) in public storage and compresses ..
April
1924
UNl'I1ED STA'l'E_S_ _ _ _
Aug. 1st to Apr. 80th
April
This
Last
1923
Sellson
Season
327,031
363,477 3,081,881 3,195,720
480,010
576,514 4,599,374 5,040,558
............
....... -.... 748,043 1,072,656
........ -_ .. 1,326,559 1,655,516
--_ ........ ........ -_..
--_._-_ ..... 1,328,273 1,498,266
............ 1,612,086 1,965,714
__ _ .0' ____ ' -
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COTTONSEED PRODUCTS
that there is a gn::at direct interest, or should be at
least, on the part of the member banks in the prosperity of this industry. The REVIEW, in presenting
To the Member Banks of the Eleventh Federal
current statistics of the industry to the member
Reserve District:
banks, has in view the purpose of making available
It is the intention of the Federal Reserve Bank of reliable and authentic information relative to the
Dallas, through the mediu~ of its MONTHLY RE- value of raw material and its products. The relaVIEW, to present to its readers statistical data and tions between the two should therefore become mancomments in relation to the cottonseed products in- ifest. The endeavor will be to establish a better and
dustry which should prove of value. The manufac- more intelligent relationship between the manufacture of cottonseed products constitutes the largest turers and the member banks from which they bormanufacturing industry in this district, the state of row funds for the purchase of seed and for the
Texas ranking first among the states of the Union operation of their plants. This improved relationin the production of cottonseed oil. There are located ship will, we feel, establish for the banks a better
in the district approximately two hundred mi'Us, em-' and more intelligent plane of operation, which will
ploying about twelve thousand people. The products undoubtedly redound to the benefit of the loaning
comprise cottonseed oil, cake and meal, hulls, ann banks and to the industry itself.
linters. No finer quality of edible oil is produced
I therefore bespeak for the manufacturers and
than that from cottonseed. If ranks with the olive
bankers
of the Eleventh Federal District a more
product and is suitable for all the uses into which
appreciative
relation with respect to the advanceother vegetable oils enter. Cottonseed cake and
meal have concentrated protein and feeding qualities ment of funds to this most important industry and
POssessed by no other feed. That their merits are for the purchase of raw material at its legitimate
generally recognized is evidenced by the fact that a manufacturing value, and the hope that the colarge per cent of the production is used by local dairy operative effort initiated by the Federal Reserve
herds at most points of manufacture. The same may Bank to secure a better and: more intelligent relabe said of cottonseed hulls. Linters have various tionship between the banks and the mills will prove
avenues of consumption. Mattress and bedding successful.
J. J. CULBERTSON.
manufacturers are consuming increasing quantities,
and a considerable amount is consumed in the manufacture of cellulose and kindred product~. It also
Below will be found a comparative
enters extensively into the manufacture of synthetic Production
tabulation of pl'oduction and stocks
and
Stocks
silk, both in this country and abroad.
of cottonseed products in Texas and
During the war the government controlled the in- in the United States, both for the current season and
dustry and its output of linters, which product was for the corresponding period of 1922-1923. It is
eminently fitted for the manufacture of explosives. planned to supplement these statistics in the near
. There was expended for the purchase of cottonseed future with monthly price quotations on cottonseea
In Texas during the past season about $65,000,- products as reflected by representative sales in the
000, which was distributed to the producer, the Eleventh District. A series of special studies coverhandler, and for freight. In addition to this about ing the condition and progress of the industry in
$15,000,000 was expended for conversion cost, all, or the Southwest is also being undertaken, the results
nearly all, of which was paid for with funds loaned of which will be published in forthcoming issues of
to the oil mills by local banks. It is at once manifest the REVIEW.
Introductory Comment by J. J. Culbertson, Class "B"
Director, Federal Reserve Bank of Dallas.
6
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
. '11111111111111111111111111111 1 1111111 11 1111111111 11 1111111111 11 1 11 1111111111111111111111111111111111111111 11 111111 1 11 1 111111 1 1111111 1 11 1 11 1 111 1 11 1 11111111 11 111JII'IIIIIIII I II I II I II I II I II II I II I II I IIIII II IIIII ! 11111Illtlllllllll l lllllllllllllllll / 111111111111 1 11111111 1 11111111111111 1 111111111111111111111111111111111111111 11111111rllllltlll~
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Cottonseed on hand, April 30th (tons )..........................................................
=
-
76,379
8,470
130,953
=:_1
61,529
Crude oil produced (pounds )............................................................................ 349371 508 274,372,865 921,698,715 962,181,590
Refined oil produced (pounds ) ................................................................................ .'....... '................................ 748,018,357 .838,584,067
Cake and meal produced (tons ) ......................................................................
578,8281
446,319
1,430,196
1,436,913
Hulls produced (tons) ............................................................................... -........
362,032
281,870
886,441
906,960
Linters produced (500-lb. bales )......................................................................
242,992
169,860
630,870
583,199
Stocks on hand April 30thCrude oil (pounds) .............................................................................................. 15,138,770
6,383,860 59,764,135 23,615,044
Refined oil (pounds) .... _........................... _........................................................................................................... 216,427,193 237,216,179
30,924
21,653
137,401
140,78~
Cake and meal (tons) ........................................................................................
Hulls (tons) ........................................................................................................
34,925
27,068
75,146
71,087
Linters (500-lb. bales)........................................................................................
42,083
7,691
145,089
56,141
=
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LIVESTOCK
Continued improvement in the condition of the percentage of the clip has been sold. Sheep shearing
district's ranges and livestock was in evidence during is active. The wool is coming in fast and is in good
the past thirty days. Cattle generally are fattening condition with staple good, but with shrinkage a
rapidly, sheep and goats are fat, grass is greening little heavier than last year.
and making good growth. Large calf and lamb crops
are now assured and the losses have been light. The
The April receipts of cattle, calves,
Movements
excellent condition of the ranges and cattle has
and sheep at the Fort Worth marand Prices
caused the range cows to produce more milk than in
ket were substantially greater than
ordinary years, and this in turn has resulted in unin either the previous month or the corresponding
usually strong calves. Although some shipments of
month a year ago. It should be noted further that
cattle have been made to pastures in ' Oklahoma and
receipts this April were also greatly in excess of
Kansas, the movement this year has been comparathose during the month of April for several years
tively light. Very little restocking has been in evipast. On the other hand, the April supply of hogs
dence.
was considerably smaller than in either March this
The condition of Texas cattle ranges had advanced year or April last year.
to 95 per cent of normal on May 1st, or an improveCattle values ruled generally steady during the
ment of three points during the past month. In
practically every section of the state a high condition month with a tendency toward higher levels. The
figure was reported, but more rain is needed in a trend of prices on calves was upward. Although the
market was somewhat weak on the close, prices were
few localities.
A further improvement was also noted in the con- higher than those at the end of the previous month.
dition of cattle on Texas ranges, being 93 per cent Quotations on hogs fluctuated within narrow limits.
of normal on May 1st as compared to 91 per cent on Receipts at most times were below requirements,
thus causing spirited competition between local and
April 1st and 92 per cent on May 1, 1923.
outside buyers.
Sheep and goat ranges, which gained one point
during April, were 99 per cent of normal on May
Sheep values followed an erratic course throughout
1st. Weed and brush have been abundant, and now the month. Following a downward course during the
the grass is making rapid growth under the stimulus first week, the market scored a distinct advance,
of warmer weather. The condition of sheep aver- during the second week reaching the highest top
aged 98 per cent of normal and they are putting on price for the year at $10.75 with bulk sales ranging
flesh rapidly. The lamp crop will be comparatively from $9.85 to $10.75. Due to heavy receipts during
large. A considerable number of lambs are being the last half of the month the market sagged consold for fall delivery at an average of approximately siderably and at the close of April the best were only
ten cents per pound. The mohair clip, which has bringing- $7.00. Lambs sold as high as $16.00, but at
been largely completed, has averaged well and a large the close the best were going at $15.00.
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
f"11111111111ll1ll1111111ll1ll111111111ll1ll1ll1ll1ll1ll1111ll1ll11111111111111111111111111111111111111111111111111111111111
I
C.til,
~
FOR:i:R:::~iv:s:;~~ R6~;~~P~::;'631
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Calves ........14,257 11,787 G 2,470
8,224 G 6,033
~ Hogs ..........36,610 44,698 L 8,088 49,908 L 13,298
~ Sheep ........57,969 16,832 G 41,137 16,344 G 41,625 i
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7
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COMPARATIVE TOP LIVESTOCK PRICES
;
;:
April
Beef steers..............................
11 Stocker steers ........................
~ Butcher cows..........................
I! Calves ......................................
i Hogs ........................................
~ Sheep ......................................
! Lambs ....................................
$ 8.25
7.75
6.50
9.25
7.65
10.75
16.00
.~924
i
March
1924
$ 8.35
7.15
6.50
8.50
·7.60
10.50
16.25
April
1928
$ 8.25
7.40
6.60
8.75
8.25
8.00
15.00
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I
~
~l1l11f11ntllltlltltlllllllllllllllllllltllll1l11ll11l11l11ll1l11ll1l11ll11lll1l1ll1lllll1ll1ll1ll1ll111I11II11111I111I1I11111'111I1II11I11II1I1I1II11I111I11I111I11~
TEXTILE MILLING
The April production of ten textile mills located in continued to decline, but stocks showed a further
Texas reflected a further decline, the output being gain.
1,677,973 pounds as compared to 1,788,293 pounds in
March and 1,939,872 pounds in April, 1923. These
mills were operating 96,796 spindles in April as compared to 99,084 spindles in March and 91,888 spindles
in April a year ago. The consumption of cotton
sumed ..............................
3,789
3,979
4,241
96,796
99,084
91,888
amounted to 3,789 bales in April as against 3,979 in E Number spindles active....
March and 4,241 in the corresponding month of 1923.
Nd~~eeJ ~~~~.~.~.. ~~~~.~.:~.~.~ 1,677,973 1,788,293 1,939,872
Unfilled orders on hand at the close of the month JUIllIlIIlIllIltIllIllIllIllIlIIlIlIllIIlIIlIIlIIlIIlIllIllIIlIIlIIlIIlIIllIIIIIlIIIIIlIIIII111111111111111111111111111111111111111111111111111111111111111111111111 ••
~IfIllItUlllllllllllllllmfllllllllttltlllllllllllllllllllllllllll1l1lll11l11l11l11ll1l11l1ll11 l l1l1lll1ll1l"l 11111111 11111111111111 1111111 1111111111111111 1111111"
INumber b::~::~~n~:~IN~:;ATI~~;S
i
t:i~'
I
WHOLESALE TRADE
Seasonal slackening in all reporting lines of trade
except dry goods was the characteristic feature of
distribution at wholesale during April. However,
the slowing down this year was not as pronounced
as usual at this season, partly because of the small
distribution in March and partly because of more
favorable weather conditions prevailing in April,
. Which had the effect of stimulating demand. One
encouraging feature of the trade is that for the first
time during the current year every reporting line
of trade reflected a larger volume of sales than il\
the corresponding month of the previous year. It
is to be noted further that all reporting lines of trade
have shown a greater volume of sales during the
first four months of this year than during the corresponding period of 1923. In fact, distribution this
Year has been on a larger scale than during any
similar period since 1920.
Despite this large movement of goods, business is
being operated on a very cautious basis. Retailers
continue to buy on a hand-to-mouth basis and are
showing no disposition to make purchases beyond'
their immediate requirements. Even in those lines
Where forward buying was in evidence earlier in the
Year, that policy is being abandoned in favor of the
more cautious policy. Prices in certain lines, following the yielding of prices on basic raw materials, ar~
gradually working to lower levels. In other lines,
however, prices have remained on a steady basis.
Dry
Althoug~
the March sales of twelve
dry goods firms showed a considerable decline both from the previous
month and the corresponding month of the previous
year, the April distribution was 1.9 per cent greater
than in March and 19.9 per cent greater than in
April, 1923. The heavy consumer demand for merchandise which materialized just prior to Easter
forced retailers to make numerous replacement orders for immediate delivery. Buying of summer
goods during the latter part of April and the first
half of May was also fairly active. Although business is larger in the aggregate, the buying demand
is very conservative. Merchants are pursuing a cautious buying policy and show no inclination to make
purchases beyond immediate requirements.
The upturn in the raw cotton market since the
first of April has served to complicate the situation
in the primary textile markets. Despite the higher
raw cotton market, cotton goods prices have been
sagging. Furthermore, mills are curtailing production as they are finding it increasingly difficult to
produce merchandise at a price which the buyers are
willing to pay.
Goods
Farm
Implements
The seasonal slackening in the demand for farm implements was evident during April, when the sales of
five firms were 20.4 per cent less than during March.
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
8
That there is still a heavy demand for implements
is shown by the fact that April sales were 53.2 per
cent greater than in April a year ago. Furthermore,
sales for the first four months of 1924 were 61.1 per
cent larger than during the corresponding period of
1923.
While buying is now on a lower scale than earlier
in the year, the demand is good for this season of
the year. The movement of cotton tools has been
active. Some dealers report a good demand' for harvesting machinery.
Prices were reported as steady. Payments have
been good.
An active defand characterized the
wholesale drug trade during April.
Although sales usually reflect a substantial decline
in April as compared to the previous month, the decline this April was only one per cent. The increase
in sales over the corresponding month of the .previous year was 21.3 per cent as compared to 10.3
per cent dur ing March. Sales during the fir st
four months of this year averaged 15.9 per cent
gr eater than during the same period of 1923. Retailers have shown no inclination to anticipate future
demand with forward orders, but buying for present
needs has been active. Prices showed but very little
change during the month. Collections appear to be
spotted, being good in some sections and poor in
others.
Drugs
A slight seasonal .decline was reflected in the wholesale hardware trade
during April, when the sales of twelve firms declined
1.0 per cent as compared to the previous month.
However, April sales were 9.5 per cent greater than
during the same month of the previous year. Sales
Hardware.
I
of these firms between January 1st and April 30th
were 11.9 per cent greater than during the corresponding period of 1923. While the demand appear s
to be holding up well, retailers are showing a disposition to defer forward orders and to buy as the demand arises. While retail buying in the cities is
holding steady, there are indications of a declining
demand in rural sections. Prices on iron and steel
basic items are showing a tendency to decline.
Groceries
The sales of ten wholesale grocery
firms evidenced a further slight decline during April, being nine-tenths of one per cent
less than during the previous month. However,
there was an increase of 15.0 per cent as compared
to the corresponding month of the previous year.
Although the buying demand has shown a tendency
to slacken, this development is characteristic of this
season when produce begins to move to market in a
heavy volume. Purchases are being made largely
as the consumptive demand arises. Prices generally
have' continued steady with no material changes
being noted on most items. Sugar, however, has
reflected a substantial decline during the past month.
Dealers reported the general outlook as promising.
Furniture
The April sales of reporting wholesale furniture firms were 1.9 per
cent less than March sales, but were 17.8 per cent
greater than during the corresponding month of
1923. The increase over last year is even more encouraging when it is recalled that sales during the
:ttirst three months of 1924 were 5.3 per cent less
than the corresponding period of last year. Furthermore, in April, 1923, sales showed a decline of 17.8
per cent from March, 1923.
I
:;.' "111111111111111111111111111 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IUIIIIIlIIIIIIIIIIIIIIIIIIIIIIIIIIIII HIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111 111111 11 111111111111111111111111111111111111111 111111111111 11111111111111111111111111'.:
g
g
CONDITION OF WHOLESALE TRADE DURING APRIL, 1924
Percentage of Increase or Decrease in
Groceries ...................................................................................................
Dl'Y Goods ........................................................................................... ......
Furniture ........................................................................................... ......
Farm Implements................................................................................ .....
Hardware ........................................................................................... ......
.....
Net Sales
April, 1921
Compared With
April
March
1924
1928
+15.0
+19.9
+17.8
+53.2
+ 9.5
+21.3
-
.9
+ 1.9
- 1.9
-20.4
- 1.0
- 1.0
Net Sales
Jan. 1st to Date Com,.
pared With Same
Period Las t Year
+18.3
+ 4.7
+ .1
+61.1
+11 .9
+15.9
Stock.
'A pril. 1924
Compared With
April
March
1923
1924
+ 7.1
+ 8.1
-
+20.8
+14.9
+ 4.2
- 5.6
+ 1.2
+ 1. 8
-
7.1
2.1
111111111111111111111111111111111111111111111111111111111111111111111111111111111111114111 1111111111111111111111111111111111 111111111111111£11111111111111111111111111111111111111111111111111111 1111111111111111 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 11111111111111111"11111111111111111:=
RETAIL TRADE
An active demand for merchandise at retail was
in evid'ence during April, when the net sales of
twenty-four Texas department stores registered a
gain of 7.6 per cent as compared to the previous
month and 11.4 per cent as compared to the corresponding month last year. The heavy volume of
10
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
The volume ' of acceptances which offerings to Federal reserve banks with which to
were executed by banks in this dis- replace the maturing paper.
trict and were outstanding on April
Net demand deposits of 52 reportCondition of
30th amounted to $1,632,923.75 as compared to
Member Banks ing member banks in selected cities
$798,664.75 on March 31st, an increase of $834,in Selected
in the Eleventh District declined
259.00. The amount of this class of paper based on
Cities
$14,505,000 during the month of
import and export transactions rose from $596,April. Loans decreased $8,537,000
109.75 on March 31st to $1,239,352.50 on April 30th, from April 2 to April 30, 1924, but on the latter
and the amount based on domestic shipments and date they were $15,657,000 larger than on May 2,
storage of goods rose from /$202,555.00 on March 1923. There was a decrease of $3,517,000 in the
31st to $393,571.25 on April 30th.
reserve balances of these banks with the Federal
The holdings of bankers' acceptances by the Fed- Reserve Bank of Dallas during the month. Their
eral Reserve Bank continued to decline during April, rediscounts and bills payable with the Federal Rebeing $27,439,404.53 on March 31st as cotnpared to serve Bank increased from $3,340,000 on April 2nd
$10,178,029.38 on April 30th and by May 15th had to $4,987,000 on April 30th. Due to the large dedeclined to $3,683,487.56. This reduction of hold- crease in net demand deposits the ratio of loans to
ings of this class of paper is due to the easy money deposits increased from 92 per cent on April 2nd to
market now existing which restricts the volume of 95 per cent on April 30th.
Acceptance
Market
~
~
~
~
§
§
~
5
1==
~
~
§
§
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
April 30, 1924
1. Number of reporting banks....................................................................
2. U. S. securities owned..............................................................................
3. All other stocks, bonds and securities owned........................................
4. Loans secured by U. S. Government obligations................................
5. Loans secured by stocks and bonds other than U. S. Government
obligations ..........................................................................................
6. All other loans............................................................................................
7. Net demand deposits................................................................................
8. Time deposits..............................................................................................
9. Reserve with Federal Reserve Bank···································· ·············.....
16. Bills payable and rediscounts with Federal Reserve Bank ................
11. Ratio of loans (*) to net demand deposits............................................
*Loans include only items 4 and 6.
Ma y 2, 1928
52
$ 53,252,000
13,247,000
3,558,000
52
$ 62,620,000
8,998,000
5,260,000
60,572,000
207,141,000
220,774,000
87,112,000
47,509,000
202,845,000
225,609,000
75,595,000
2N~i'~~g
"
95%
2:,~~~,ggg
,
,
92 %
April 2, f9 24
i
~
i
i
52
$ 52,983,000
14,389,000
§
3,066,000;:
62,516,000
214,226,000
235,279,000
86,345,000
f
§
~_~
=
~
~
, 92 0/0 _
l<
§
~
2~'~lJ'ggg
,
:1'INIIIIIIIIIIIIIIIIIIIIIIIIIII1I1II1I11I1II1I1II1III111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111'111111111111111111111111111111111111111111111111I"lllIlIIllIllIllIllIlh
Operations of
the Federal
Reserve Bank
The seasonal expansion in the demand for bank credit during April
due to increased agricultural activities was reflected in the rising
volume of Federal Reserve Bank loans to member
banks. Loans outstanding on March 31st amounted
to $9,825,892.36, and during the month increased to
$12,975,415.94, an increase of $3,149,523.28, or 32.1
per cent. The increase in loans the same month last
year amounted to $6,156,017.49, and by April 30th
the total loans to member banks had reached $26,117,134.39, or $13,141,718.45 greater than on the
same date of 1924. Though the increase in loans
during April, 1924, was not as great as last year,
there has been a wider distribution of credit, as is
evidenced by a large increase in the number of borrowing banks during the month. There were 214
banks owing the Federal Reserve Bank on April 30th,
as compared to 166 on March 31st.
The total volume of bills held by the bank decreased from $37,265,296.89 on March 31st to $23,153,445.32 on April 30th. This reduction was due
to the large amount of our holdings of bankers' acceptances which matured during the month and were
not l'eplaced by new purchases. Our holdings on
April 30th were distributed as follows:
"IINtlllllltnttlnKJllnmllllnlHlIlIIl1nlllllllllllllllfllllllllllllllllllllltlllllllllllllllll 111I11II1111I1I11111I11I11111I11'11111 : 1111111111'lllltlllIlII~
Ii
Member banks' collateral notes secured by
U. S. Government obligations .................. $ 1,129,250.00
Rediscounts and all other loans to member
;;
banks ............................................................ 11,846,165.94
I Open market purchases (Bankers' acceptlances) .......................................................... 10,178,029.38
~
i
i=
§
§
~
~
~
~
Total bills held ........................................ $23,153,445.32 §=
~11111111111111111t1ll1l1ll11""llIItlllllllllllllltlIIIIIIIIlII1ININIIIIIIIIIIIIII1IIIIIII1II 1lIllIllIllIlllllllllllIlllllllIlIIlIlIlllIIlIllIIlIIUrtllllllllllt::
Federal reserve notes in actual circulation remained steady during the month, being $43,685,015
on April .3 0th as against $43,979,735 on March 31st.
The circulation of Federal reserve notes on April
30, 1923, was $27,866,820, or approximately $16,000,000' less than the same dat~ in 1924. Member
banks' reserve deposits dropped from $52,271,695.19
on March 31st, to $48,622,070.50 on April 30th, reflecting a net loss of $3,649,624.69. The reserve deposits of member banks on April 30, 1923, were
$47,133,055.53.
14
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
LUMBER
A decided improvement in the demand for lumber
during April was evidenced by the increases in pr()o·
duction, orders received at the mills, and shipments
from the mills during month. Production continued
to rise, and for the first time since July, 1923, was
slightly above normal, as compared to one per cent
below normal during March, and 20 per cent below
normal in April, 1923. Shipments from the 47 reporting mills were 96 per cent of actual production
during April, as compared to 86 per cent during
March. Orders received at these mills were only 8
per cent below normal production, which is a decided
improvement from 2f> per cent below normal production during March. Stocks continued to increase
during April, being only 12 per cent below normal
stocks, as compared to 15 per cent below normal in
March. Unfilled· orders on the books of 47 reportin:
mills were only 42,800,550 feet as compared to 48,192,052 feet on the books of 49 reporting mills at
the close of March, or a decrease of 5,391,502 feet.
':'IIIIIIIIIIIIIIIIUIIIIIIIUIIIIIIIIIIIIIIIIIUIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111111111111111111'.
APRIL PINE MILL STATISTICS
Number of reporting mills............
47
Production . __ ____ __ . ____________ . ____ . ______ . __ .100,693,971 feet
Shipments ____ __ __ . ____ __ .______ ____ ________ ____ __ 96,759,439 feet
Orders ______ ..____ ______ __________ __ __ ______ ________ 92,962,262 feet
Unfilled orders April 30th __ __ ____ __ __ 42,800,550 feet
Normal production __________ ____ __________ 100,603,681 feet
Stocks, April 30th ______ ______________ __ __ ____ 275,438,350 feet
Normal stocks __ ____ ____________ ________ __ ____ 313,925,909 feet
Shipments below production ____ __ ____ 3,934,532 feet= 4%
Actual production above normaL
90,290 feet=none
Orders below normal production 7,641,419 feet= 8%
;'IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII'IIA'U411111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,·
BUILDING
Construction activity in the Eleventh Federal Reserve District during April, as gauged by building
permits issued at eleven principal cities, reflected a.
decline of 18.2 per cent in valuation as compared to
March, but an increase of 5.6 per cent over April,
1923. However, there was an increase of 2.8 per
cent in the number of permits issued during April
as compared to the previous month. There were
3,118 permits issued during April having a valuation
of $7,319,656, which compares to 3,034 permits with
a total valuation of $8,951,289 issued during the
previous month, and 2,899 permits with a valuation
of $6,930,868 issued during the corresponding month
of 1923. During the period January 1st to April 30,
1924, there were 11,342 permits issued, which had a
total estimated valuation of $31,189,961 as compared
to 10,833 permits issued during the same period of
1923 having a valuation of $32,158,471, or a decrease
in valuation of only 3 per cent.
~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.IIII IIIIIIIIIII I I 111 1111111111111111111111 111111111111111111111111111111111111111111111111111UIIIIIIIIIIIIIIIIIIIIIIII'IIiUlIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1111111111111111111 111111111111111111 1111111111111111 111111111 1 111111111 111'1I1111i11ll1l11111l11111l1l11111111111111l111 1 1~
I
BUILDING PERMITS
A~"' . .._.... . _. .._._._._. .. ::;:;~:;:::; :~>:.;:.;; ::;:: :;::::~:::; ':-:':
Bonumont. __ . ___ __ ______ ____ .__ . ____ . __ ...
DallaB _____________ . __ __ ______________ .__ . __ ..
EI PIlOO______ __ __ __________ __ . __ . ________ __ .
~
,,_I
=
~3877
N,: FOm< Fo"
!45 '5~
378,166 1,926,066 +
101
298,368 -
41.4
15.9
14.2
237
443
96
- 59.4
- 18.1
- 23 .5
1,80~
81
2 222211,43 59 0
"
204,560
647
197
1,961,314
183,270
682 1,611,805 +
24 3
262.089 571,723 +
29.7
30.1
26.6
669 1,556,63 1 +26.0
182
177,24 2 + 3.4
375
895,94 8 -19 .9
2,403
744
1,457
646,236
2,712,1 58
267 ,366
864
305
m m:m m m:~~: 4='1~~:~ m m:~~1 :!:~~:g l.m
m ng~y ~~~
:::~.~=-~.~ ::.:.~.: :.:.: .: .~.:. :. .: .: .: .: .: .: 3,1:: 7.:::::::
6,::::::::1~::: 3,::: ::::::::~ :~:: 1:::::
~~~!08'%c;::~~::::::::::::::::::~.:::::::::
Houston __ . __ . ______ . ____________ ...........
Port Arthur __ ____ . ____ . __ .__ ... __ ...__ .
San Antonio. ____ ____ ... __ __ .. .. __ .....
2.8::
Mo,",
I
~~~~
=
!
~ 7:::
I
+
+
3.9
18.3
305
17:2
-:!::.1~~:~
_ 49.1
+
7.1
§
;;
§
1====_
§
n1l1l11l1llUl111111I11I111I11I11111ll1 11ll1I111I1 1111111111111 11 111l111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111117,
CEMENT
The production of Portland cement at Texas mills,
after declining during March, reflected an increase
of 16.8 per cent in April as compared to the March
production, and 12.2 per cent as compared to the
April, 1923, production. Shipments of cement increased 31.9 per cent during April as compared to
the previous month, and 33.4 per cent as compared
to April, 1923. Stocks held at the mills at the end
of April amounted to 337,000 barrels of cement, as
against 396,000 barrels on March 31st, or a decrease
of 14.9 per cent. However, they were still 18.2 per
cent in excess of those held at the end of April, 1923.
The increased activity during April is reflected In
the cumulative statistics for the first four months
of this year. During this period production of cement
increased 1.2 per cent as compared to the same period
of 1923, and shipments reflected an increase of 3.6
per cent as compared to those of the same period
of the previous year.
15
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
gUlllllllllllllllUlIlIllIIlIIlIIlIlIllIIlIlIIlIIllIlIlIlIlIlIlIIllIIlIlIlIlIlUlIIlIlIlIlIIlllIlIUlIllIUll1IIIIllInUlIlIlIlIIlIlIIlIlIlIlIllIlIIllIlIlIlIlIlllIlIIlIlIlIIlIIllIlIlIlIIlIIlIIlIUllllllllllllnllIIlIlIlIlIl1IIIMlIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIImllllllllllllY.
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
====~=============I;==='=""'"
April. 1924
Prouuction of Texas mills.................
Shipments from Texas mills.............
Stocks at the end of the month at
Texas mills ....................... :..............
404,000
463,000
(Barrels)
Apr.l. 1928
360,000
347,000
337,000 1
P er Cent
Inc. or Dec.
12.2
33.4
March. 1924
Per Cent First Four Months
Inc. or Dec.
1924
1928
346,000
351,000
18.2
Per Cent
Inc. or Dec.
+ 16.8 1 427 000 1 410 000
+3l.9 1;369;000 1;322;000
+ 1.2
+3.6
-14.9
,,111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111. 1111111111111111111111111111111111111111111111111111I11I1II11I11I11II1II1II11I11I11I11I1I111I111I11I11II11I11II11I11I111U1111111I11I11II1111111111111111111111111 1 11111111111111111111111111111111111111111 111I111I111l11I111I11111 1~
SUMMARY OF NATIONAL BUSINESS CONDITIONS
t Compiled by /he Federal Reserve Board as of May 24. 'Q24.)
Factory employment and production of basic commodities declined in ApTil and there was a further
recession in wholesale prives. Retail trade was
larger than in March, chiefly because of Easter buying, and was at about the level of earlier months of
the year. There was a decrease in the volume of
borrowing for commercial purposes and further
easing of money rates.
PRODUCTION
The Federal Reserve Boam's index of production
in basic industries, adjusted to allow for seasonal
Variations, declined 2 per cent in April. Declines
Were particularly large in the iron and steel, coal,
a!ld woolen industries. Mill consumption of cotton,
on the other hand, showed less than the usual seasonal reduction between March and! April.
Factory employment declined 2 per cent in April,
Owing chiefly to large reduction of forces at textile
and clothing establishments. Contract awards for
new buildings reached a higher value than in March,
and were also larger than a year ago; the value of
bUilding permits granted, however, declined and was
smaller than in the corresponding month of 1923.
The Department of Agriculture estimates on May
first of yield of winter wheat and rye are somewhat
above the forecasts made in April. The acreage of
rinter Wheat is estimated at 7 per cent less than
ast year.
'TRADE
Railroad shipments, which since the middle of
!VI"
larch have been smaller than last year, were 3 per
Cent less in April than a year ago. Shipments of
Coal were much below last year, while loadings of
l11erchandise and miscellaneous freights were higher.
Wholesale trade in April was in about the same
~OlU~l1e as during the preceding month, and as in
PrII, 1923. Sales of dry goods and hardware were
S~laller than a year ago, while sales of drugs and
s Oes showed fln increase. Department store sales
Were considerably larger in April than in March,
Partly owing to the unusually late Easter. Total
sales for the two months were 2 per cent greater
1.
than in the corresponding period of 1923. Merchandise stocks at stores showed less than the usual
seasonal increase in April, but were at a higher level
than a year ago.
PRICES
Wholesale prices, according to the Bureau of Labor
Statistics index, declined one per cent during April,
and reached the lowest point since May, 1922. Farm
products, however, advanced 2 per cemt in April.
Metals and foods showed substantial reductions;
prices of clothing, fuel, and chemicals also declined;
while prices of building materials and house furnishings remained unchanged. During the first half
of May quotations on cotton, wheat, flour, and hogs
increased, while prices of sugar, silk, wool, and
metals declined.
BANK CREDIT
During the five-week period ending May 14th the
volume of borrowing for commercial purposes at
member banks in leading cities declined somewhat
from the high level l'eached early in April. There
were increases, however, in loans of stocks and bonds
and in investments in securities; so that the total of
all loans and investments at the middle of May was
higher than a month previous, and in larger volume
than at any time in more than three years.
The volume of borrowing by member banks at
Federal reserve banks declined further during the
last week in April, and in May, while holdings of
securities bought in the open market increased
slightly, total earning assets declined to $795,000,000
on May 21st, the lowest figure since the autumn of
1917.
Further easing of money conditions during the
last week of April and the first three weeks of May
was reflected in a continued rise of the prices of
Government securities, in a reduction from 41f2 to
414 per cent in the rate for prime commercial paper,
and a decline in the rate for bankers' acceptances
from 4 to 3 per cent. On May 1st the discount rate
of the Federal Reserve Bank of New York was reduced from 4% to 4 per cent.
16
MONTHLY REVIEW AND BUSINESS AND INDUSTRIAL CONDITIONS
Weekly figures for 12 Federal Reserve Banks.
Latest figures, May 21st.
Index for 33 manufacturing industries (1919=
100). Latest figures, April 97.
PRODUCTION IN BASIC INDUSTRIES
PUt C.[HT
1 ~o
100
~,
~
~
~i!I
~
I
~1'JIi
~~
a,
i1 '
100
~o
50
o
o
1919
Index of U. S. Bureau of Labor Statistics (1923=
100, ba ed adopted by Bureau.)
Latest figure,
April 148.
1920
1921
1922
1923
192 ..
Index of 22 basic commodities corrected for seasonal variation (1919=100). Latest figure, April
114.
@FedFRASER