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I~~~NT~L~ '~~'SIN~'SS R~VIEW OF THE FEDERAL RESERVE BA,NK OF DALLAS c. C. WALSH Chairman and Federal Reserve Agent CHAS. C. HALL- W. J. EVANS Assistant Federal Reserve Agents (Compiled May 15, 1931) ,.. '''' ,.. ~lume 16, No.4 s- 'f ,.. Dallas, Texas, June 1, 1931 'r s- s This copy is released for publication in morning papers June 1 DISTRICT SUMMARY 'I'lill SITUATION AT A GLANCE Elovonth Fodomlll.cliorvo Distriot B"ry~ dcbite to individulIl Moounls (nt 17 D CltIOS) " ",', ' " ,''' , . ... .... .. " .. , .. .. . $654,164 ,000 OS?rvc bank loalls to mombor bllllks III elld mOllth .... " .... . , ... , . . ............. . Be1J:V" hank rntio lit olld of month .. , . , . , , .. CU Illg pormit vllluation at larger oontors . .. , C~~:~;~ial In!luroo (,!u".'I.>o,r)" .. , ... , , .. , .. . 0 '1 ad n. Bllurcs (hab,ht,os) ....... " .. ". -.!...,pr "cllon (barro,") . . , , , .. , " . , , .. , , .. ' , 7,850,610 59 ,8% 4,112,710 85 S 1,650,741 28,780.200 Itopnrt",onl 810ro 8111cs" , . . , . , .. , , , , . , . . , .. . nO - ,8% + 6,1 % + 13 ,0% 1.6 points + 31,4 % + 11. 8% + 13.4% + 14,0% A further slight improvement in the distribution of merchandise in the Eleventh Federal Reserve District was dis?ernibl e during the past month. Sales of department stores 111 larger centers were 6 per cent larger than in the previous ~nonth .and while sales were 12 per cent less than a year ago ~n ApI'll as compared to 11 per cent in March, the difference IS more than accounted for by the fact that Easter came two ~reeks earlier this year. lha~ in 1?30. Wholesale distribuon reflected an expanSIon m ApI'll as compared to March, Contrary to the usual seasonal trend, and comparisons with year ago were more favorable in a majority of reporting Ines than in the earlier months of the year. It should be h I orn' mm , however, that merchants are following the I' e 1I1 'd b~ ~cy .of buying for immediate needs and purchases at the gl nnll1g of the season were not as heavy as usual; conse(~el1tly, the improvement in consumer demand has necessie~ frequent reorders from wholesale concerns. While colAet~,olns are still slow, they were in larger volume during Pll than in the previous month. and promise heavy yields. There has been sufficient rainfall to maintain goo~ surface and subsoil seasons in all sections of the district and farmers generally have made fair to good progress with planting operations and the cultivation of the crops. The weather, however, has been too cool for the proper germination of seed and the growth of row crops has been retarded. The record emergence of insects, together with weather favorable to their propagation and growth, presents a potential danger to this year's cotton crop. A betterment in the condition of livestock and their ranges occurred in practically all sections of the district and good summer grazing is practically assured. Grass-fat sheep are moving to the market in record volume and heavy movements of fat cattle are under way. The market prices of livestock, however, have worked to lower levels. t The daily average of combined net demand and time deposits of member banks in this district amounted to $801,150,000 in April, which represents a decline of $1,085,000 as compared to March and $66,153,000 as compared to April, 1930. While the decline this spring has not been as marked as a year ago, it has been due to the fact that deposits of reserve city banks have increased and have tended to offset the withdrawals from country banks, Federal Reserve Bank loans to member banks increased $1,024,,000 between April 15 and May 15 and on the latter date were slightly larger than a year ago. The demand for funds at reserve city banks continued slack and the loans of these banks reflected a further sharp decline during the month. The Federal Reserve Bank of Dallas reduced its rediscount rate from 3~ to 3 per cent, effective May 8. tin T~e physical condition of the agricultural industry cono Ue generally favorable, yet some untoward developments pcC,urred durin g the past Lhirl y days, According to the Dealtment of Agriculture small grains are in good condition The valuation of building permits issued at principal cities reflected an increase of 34, per cent over the low March volume, yet it was 43 per cent below April, 1930. The production and shipments of cement from Texas mills again reflected a large increase over the previous month but were considerably smaller than a year ago. I' BUSINESS !!'holesale The month of April wiLnessed some improvement in the distribution of merchan'vh' h dise in wholesale channels in this district, lC "fi slo\' ,vas Slg1111Cant by reason of the fact that a seasonal all l~ng down usually occurs at this season. While sales in ago ~hes continued to be considerably smaller than a year , ey reflected a general increase as compared to March. .trade Business in the wholesale hardware and farm implement lines was noticeably improved, partly because of the present good prospects for agricultural production. While distribution in all lines appears to be gradually improving, merchants still show a disposition to defer forward orders and to buy only as consumer demand arises. Wholesalers and retailers alike are continuing to operate on a cautious basis This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 and to proceed slowly, because of pr~ce :'eadju~tments and the uncertainty of the future. Inventones m aUlmes showed a tendency toward reduction, and they were s~aUer than at the close of April last year. Although collectlOns were reported to be slow in many sections, there was a general improvement over the previous month. Contrary to the usual trend at this season, disLribuLi?n of dry goods through wholesale channels refiecLed an mcrease of 2.7 per cent as compared to March. There was, however, a decrease of 27.4 per cent from the volume of April, 1930, and aggregate sales for the first four months of the current year were 32.0 per cent below the level of a year ago. Retailers continu~ to ~ollow a hand-to-mouth buying policy and are purchaslI~g m small lots, but the be~ter consumer demand has necessltated frequent reorders. Pnces of cotton goods have reacted in sympaLhy with the downward trend of raw coLton. April collections showed a further increase of 4,.9 per cent as compared to the previous month. A sizable gain in the business of wholesale farm implement firms was in evidence during April, being attributable in part to the good physical outlo?k for crops. Contrary to the usual seasonal trend, sales durmg the month showed an increase of 4,2.5 per cent as compared to March, but they were still 4,0.2 per cent below the level of April a year ago, and for the first four months of the current year they reflected a decline of 55.5 per cent from Lhe corresponding period in 1930. For the first time since OcLoher last year, the volume of collections reflected an increase over the preceding month. There was a further perceptible pick-up during April in the demand for hardware at wholesale in the Eleventh District. While the improvement was general, it was most apparent in those parts of the State which are deriving benefits from the growth of the East Texas oil fields . Aggregate sales during the month, although 18.1 per cent less than in April, 1930, were 15.9 per cent greater than in March. During the months from January to April, inclusive, sales were on the average 26.0 per cent smaller in volume than in the same period last year. Collections reflected a substantial improvement over the preceding month. The demand for drugs at wholesale was well sustained during April, being on practically the same basis as it w.as in the previous month. Total sales, however, reflected a decrease of 10.3 per cent as compared to April last year. The volume of business transacted from January 1 through April 30 was 11.0 per cent smaller this year than it was in the same period in 1930. The month of April witnessed a small improvement in collections. Sales of reporting wholesale grocery firms during April, while 3.4, per cent larger than in the previous month, were on a 15.2 per cent smaller scale than in the same month last year. A majority of the reporting firms showed a larger volume of sales in April than in March, but most of the firms reflected a substantial decline from April, 1930. AI· though there were no substantial price changes, a further downward trend was in evidence. Collections turned upward during the month and were slightly larger than in March. CONDITION OF WHOLESALE TRADE DURING APRIL, 1031 Percentage of increase or doerOOlle in- Groceries ........ . Drygoods .. .. .... Farm implements .. Hardware .. . ..... Druga .. ... ....... Net Snles Net Snles Stocka Rotio of collecApril,1031 Jan. I to date April, 1031 tions during April compared with compared with compared with to accounts and April Mar. same period April Mar. notes o""'tanding 1030 1981 last yenr 1030 1031 on March 31 - 15.2 + 3.4 - 17 .0 - I~ . O - 2.2 60 .1 - 27.4 + 2.7 - 32 .0 - 35.6 - 4 .6 22 .2 - 40 .2 +42.5 - 55 .5 - 5 .2 - 4 .7 3 .8 - 18 .1 +15 .0 - 26.0 - 1.3 - 1.5 34 .8 - 10.3 +.1 - 11 .0 - 16.3 - 1.4 38 .1 Relcdl The business of department stores in largo er cities of the Eleventh District witnessed some improvement during the past month, Sales held up very well after Easter and showed an increase of 6.1 per cent over March. While sales reflected a decline of 12.0 per cent from April, 1930, the decline was only slightly larger than in the previous month, and may be con' sidered favorable when it is recalled that in 1930 most of Easter shopping was done in April, whereas a large part of it occurred in March this year. Sales during the first four months of 1931 averaged 10.8 per cent less than during the like period of 1930. Stocks of merchandise held at the close of April reflected a decline of about 1 per cent as compared with the previouS month, and were 15.0 per cent less than a year ago. The ratC of stock turnover during the four months of the current year was .97 as against .93 in the same period of 1930. . Collections during the month were the most favorable smce November, 1930. The ratio of charge accounts collec' ed during April was 34,.4 per cent as compared to 33.1 per cent in March, and 35.2 per cent in April, 1930. Trade DUSINESS OF DEPARTMENT STORES To!..,\ Sales (Pcrcelltage): April, 1031, compared with April, 1030 ....... .. .... .. .... .. .. .. .... .... April, 1031, compared with Mnrch, 1031 ................. . .. . •. . . . . •...... . . . .. . January 1 to date, compared with Sllmc pcriod las t yellr ..... . ..... .. .. ... .. ..... .. Credit Sales (Percentage): April, 1031, compared with April, 1030 .. .. .. .. . . ......... . . . . .• .. . .. . .. . . • . . . . . . April, 1031, compared with March, 1031............. .... , .... . , ....... ........ Jnnuary 1 to dnte, compared with salDe period l!lSt yellr ... ...... .. ....... .. ...... Stocka (Percentage): April, 1031, compared with April, 1930 ... . .. . .. ....... .. ...... . .. .. .... .. . .. .... April, 1931, compared with Mnrch, 1031. .. . ... . . ...... . ... .. .. . ........ ... . .... Stock Turnover (Rate): ltate of stock turnover in April, 1030 . . ..... .. . .. . ... ... ................ . . ... .. . Rote of stock turnovor ill April, 1931. .... ....... .... .. .. .......... , . . . .. ... .. .. nate of stock turnover .Tanuary 1 to April 30, 1030 .. . .. . . . .... .... .. ...... .. .. ... llnte of stock turnover Janunry 1 to April 30, 1031 . . . .. . . .. ..... .... . .... .. ... .. . Ratio of April collections to aecounla receivllble oulatllnding April 1, 1031 . .. ............ Dallna - 0.0 + O.U - 12 . 1 }Iort Worth - 3.4 + 7 .0 - 3 .6 Housten - 13 .0 +1I.2 -1I.6 SlIn Antonio - 13 .1 .7 - 3 .0 - Othcrs - 21.1 - 3.2 - 14.8 '1'otal District - 12. 0 + 6. 1 - 10 .8 - 13.3 + 8 .0 - 14.1 - 5.1 + 7.1 - 5 .7 - 13 .4 + 2 .6 - 14.5 - 15 .3 + .1 - 1 .5 -23 .6 - 2 .8 - 10 .2 - 14 . 1 + 4 .4 -12 . 1 - 17.0 - 3.4 + - .3 .1 - 15.0 +1.1 - 0 .0 + 8 .6 - 24 .8 - 3.4 - .20 .20 .26 .27 .06 1.03 37.6 .34 .35 1.22 1.33 35.4 .21 .22 .82 .88 35.6 .25 .27 .U6 1.02 33.1 .77 .71 31.8 - 15 .0 .7 .25 . 26 .03 .07 34 .4 The business mortality rate in this d~;~t--~olvencies during April with aggre~~t~ 'l~;b~ii;i;s amountinG tUl'l1ed upward in April and, for the first to $1 ,650" , as compare d to 76 defaults in March WIt lJ 0 741 . time since January, was higher than in combined indebtedness of $14,55519 and 58 failures ifl the previous month. Likewise, there was an increase in the ~pril last year, owing $1,551,4,09.' Th~ average liability 0f indebtedness of defaulting firms. According to the report Insolvent firms rose to $19,4.20 which is the hiO'hest level compiled by R. G. Dun & Company, there were 85 in- reached this year. ' t> COI1W~e,.ci.al Failures MONTHLY BUSINESS REVIEW 8 AGRICUL TURE ~/'op Condi- Dcvelopments in the agricultural situation have not been altogether favorable during the past six weeks. While the open weather during the first three weeks in April enabled farmers to make rapid progress with farming operations, the rank growth of weeds and grass which sapped the soil moistu.re and the drying winds left the top soil in some areas WIth a deficiency of moisture. This situation was corrected, ho.wever, during the following two weeks by heavy general rams throughout the district. Throughout most of the period, the weather has been too cool for the proper germination of s~e.d and growth of crops. At the middle of May, soil conditIOns and moisture supply were excellent in practically all se~tions; yet row crops generally were making only poor to fall' progress due to the continued cool weather and the wet soil in many areas. The dry sunshiny weather prevailing during the second week in May enabled farmers to make rapid progress with planting operations and to rid the fields of grass and weeds. however, the crop should be able to overcome much of the handicap of a late start. The May 1 condition of the Texas Irish potato crop was only 69 per cent of normal as compared to 73 per cent a year ago. The weather has been too cool for proper germination and growth and there have been some complaints of the seed rotting in the ground. In Louisiana, the crop is making favorable progress with the May 1 condition at 85 per cent of normal as compared to 80 per cent last year. A low yield of peaches in Texas is again in prospect this year. While the May 1 condition was 4.0 per cent of normal as compared to 34, per cent last year, it was 21 points below the six-year average. The spring freezes killed most of the crop in West and Northwest Texas and only a small crop is expected in the North-Central area. All other sections, except the extreme South, have suffered some damage, ranging from slight in the South to heavy in the Northeast. A fair to good cro'p is expected in Louisiana. , Winter grain prospects are still very promising. The fexas wheat crop was reported by the Department of Agriculture to be at 88 per cent of normal condition on May 1 as compared to 68 per cent a year ago. The abandonment of acreage to May 1 this year was only 5.5 per cent as compared to 16 per cent last year. On the basis of the May 1 condition, production was estimated at 41,706,000 bushels as compared to a production of 28,270,000 bushels in 1930. The condition of this crop in New Mexico advanced 5 points during the IUonth and at 98 pel' cent of normal on May 1 was 19 points above a year earlier. Indicated production was placed at 6,4,75,000 bushels as compared to a production last year of only 1,36] ,000 bushels. Thc wheat crop is likewise in good condition in boLh Oklahoma and Arizona. The Texas oat crop, although damaged somewhat by cool weather, promises a good yield. The May 1 condition was placed at 85 per cent of normal as compared to 57 per cent a year ago and to 70 per cent for the six-year average. The condiLion of the crop l~ Oklahoma and Louisiana was 83 and 80 per cellt, respecLIvely, as compared to 60 per cent on May 1, 1930. The rye crop in all states attachcd to this district is in good condition and prospective yields are considerably larger than a year ago. Livestock tLOns While the wcather has becn too cool for the proper growth of the corn crop and considerable replanting was necessary, it is making fair to good progress and should ~evelop rapidly with the advent of warm weather. The tame ay crop is in much better condition than a year ago and present prospects indicate excellent yields. Alfalfa in Southern New Mexico is ready for the first cutting. Ll The progress of the colton crop has been generally slow llroughout most of the district. The wet soil in many areas las delayed planting and the cool weather has prevented the ~l'oper germination of seed and growth of plants, with the lesl1l~ that considerable replanting has been necessary in Cil'tam areas. In South Texas planting is practically corn~ted and much of the crop is chopped to a stand with fields all'ly clean. In most other sections, planting is behind ichedule with very little cotton in the ground in Northwest tl eXas. With a large percentage of the crop later than usual, d~e record emergence of insects presents a serious potential anger. Reports indicate that insects are present in large !lUmbers in many fields and that lice and cutworms are doing considerable damage. With a period of warm, dry weather, y Further improvement in the condition of livestock and ranges in the Eleventh Federal Reserve District occurred during the month of April. Reports indicate that conditions are uniformly good in practically all areas. Since the general rains late in April, moisture is ample in all sections, stock water is plentiful, and weeds and grass have grown rapidly. The Department of Agriculture reports that on the whole the outlook for summer grazing is ideal. The condition of Texas ranges on May 1 was reported by the Department of Agriculture as 91 per cent of normal, which was 3 points above that a month ago and 14, points higher than the May 1 condition last year. The condition of cattle gained 4 points during the month and was 11 points above that obtaining a year ago. Cattle in all parts of the State have put on flesh rapidly and most of them are fat and in marketable condition. Due to the low prices and good range conditions, movements generally have been slow. While the calf crop is not expected to equal that of a year ago, the quality is much better and losses have been small. The condition of sheep and goat ranges in Texas on May 1 was 91 per cent of normal, which was 1 point higher than a month earlier and 22 points above the low condition obtaining on May 1, 1930. Weeds and brush have supplied an abundance of feed, and sheep and goats are now fat and are moving to market in very heavy volume. The condition of sheep and goats gained 3 points during the month and was 17 and 13 points, respectively, higher than a year ago. A much larger lamb crop than a year ago is in prospect. Goat shearing is about over and sheep shearing is well advanced. Range conditions in New Mexico improved 3 points during the month but the cool weather caused some shrinkage in cattle and a few losses in calves. Sheep are in fair to good condition and prospects point toward a good lamb crop. In Arizona there has been an improvement in both livestock and their ranges. Range feed is ample and cattle and sheep are making good gains. M OVell'lIents The ex c e p t ion a II y heavy movement of sheep to the Fort Worth market was an outstanding feature during April and the first two weeks of May. April receipts of sheep totaled 257,066 head as compared to only 41,159 head in April, 1930, and May receipts have been proportionately greater than in the previous month. Cattle receipts showed a substantial increase over both the previous month and the corresponding month last year. The arrivals of calves were practically the and Prices MONTHLY BUSINESS REVIEW 4 same as in March, but considerably smaller than a year ago. The number of hogs yarded in April was materially smaller than in either comparative period. The market on all classes of caule continued downward and at the middle of May prices were noticeably lower than six weeks earlier. The hog market has been very uneven with Cattle .......... . Calvea ..... . ... . Hoga ... ... . .... . Shecp ........ . . . April 1031 58,405 11,342 22,531 257,000 1930 54,034 16,948 37,559 41, 159 Chango over Year + 4.m 5,006 - 15,028 + 215,007 March 1031 45,058 ll,094 25,715 110,910 ................................... ... ~ COMPARATIVE 'l'OP LIVESTOCK PRICES (Dollars pcr hundred-weight.) April FORT WORTH LIVES'l'OCK RECEIPTS (Numbor) April the trend of prices slightly downward. While sheep and lamb prices have worked to lower levels, the market has held up surprisingly well in the face of the exceedingly heavy receipts. Chungc ovcr Month + 12,447 + 248 3,184 +140,147 Beef steers .. .. . ... . ..... . .. . . ... .. ..... .. Stockor steers . .. . .. .... . . .... .. ... . ..... . Buteher oows .... . ..... . .. . .. . ...... . ... . Stocker cows ..... .. .................... . . Calvca ......... . . ....... .. . ............ . t:~:::::::::: :::: ::::::::::::::: : :::: April Maroh 1931 S 8.25 5 .75 5.75 5 . 25 10 .00 8 .00 5 .50 8.75 1030 $12.50 12.00 8 .50 6.35 11.50 9 .90 0. 15 12 .00 1031 $ 8 .50 7 .50 5 .50 5 . 25 10 .00 8. 10 5 .75 10 .00 FINANCE Operations of the Federal Reserve Bank Federal Reserve Bank loans to member banks which stood at $7,321,000 on April 15 showed a gradual expansion during the next thirty days and at the end of the period amounted to $8,34,5,000, a gain of $1,024,000. While the increase was about equally divided between reserve city banks and country banks, the bulk of Federal Reserve Bank funds has been absorbed by the country banks. Loans on May 15 were $579,000 greater than on that date in 1930. There were 172 banks borrowing at the Federal Reserve Bank at the middle of Mayas compared to 161 thirty days earlier. Bills bought in the open market showed only a slight change during the period but on May 15 were $1,050,000 less than a year ago. Federal Reserve notes in actual circulation, contrary to the usual seasonal trend, reflected an increase of $524,000 between April 15 and May 15, but on the latter date were $3,612,000 less than a year ago. The daily average of reserve deposits of member banks amounted to $56,977,000 during the thirty-day period ending May 15 as compared to $57,131,000 during the previous period, and $61,891,000 during the corresponding period last year. 1931 Total eash rcaervea .. .. . ......... . ...... .. Discounta for mombor banks ... . .......... . Other bills discounted . .......... . .....•... Bills bought in open market . ....... .. . • . .. United Statoa seourities owned .. . .... . •.... Other inveatmenta .............. . .. . ..... . Total earning asscta ..... . ............... . Mambor bank reaerve deposita ....... . . . .. . Federal reserve notea in netual cirenlation ... . Condition of Member Banks in Selected Cities S 47,480 8,345 o 5,606 20,22'1 7 43,1 88 54,240 27,650 April 15, 103 1 $ 52,:136 7,321 6 5,5 to 29,220 7 42,072 57,409 27,126 CONDITION STATISTICS OF MEMBER BANKS IN SELEC'mD CI'rIES (In thousands of dollars) May 13, April 8, May 14, 1931 United Statoa securities owned ... . . '" ..... All other stool<s, bonds, and securHies owned. Loans on scouritiea . .. ............... .... . All other loans .... . ................. .... . Total loans ... ... ... ............ .... . ... . N01 demand deposits . ......... ..... ..... . Time deposita .... .. ......... . . . ......... . Rcaerve with Federal Rcaerve Bank .. .. . .. . Bills payable and rediscounts with Federal Reaerve Bank ......... . ..... . .. ....... . 1031 1030 S 84,052 S 85,585 S 05,653 54 ,940 88,943 211,451 300,307 280,943 147,772 33,408 53,272 01,663 218,286 309,948 277,212 160,560 33,551 43,500 11 6,442 23 1,104 347,546 288,020 140,870 33,287 860 582 629 Combined net demand and time deposilS of member banks in the Eleventh Federa}} Reserve District reflected a small season!! decline in April and remained considerably below the vOh ume of a year ago. The combined average during the mont amounted to $801,150,000, which compares with $802,' 235,000 in March, and $867,303,000 in April, 1930. TiJ)'le deposits decreased in the case of both reserve city and co u!1' try banks. While the net demand deposits of country ban~s declined from $304.,34.5,000 in March to $297,802,000 111 April, an offsetting increase of $6,084.,000 in the net demall d deposits of reserve city banks brought this figure to $269 207,000, which is the highest level recorded since May, 193 ' Deposits of Member Banks CONDITION OF 'l'HE FEDERAL RESERVE BANK (In thousands of dollars) May 15, shown a gradual expansion since the beginning of the year and on May 13 amounted to $280,941 3,000, as compared to $269,144,000 on December 31, 1930, and $288,920,000 on May 14 last year. Time deposits reflected a decline of $2,784,,000 between April 8 and May 13, and on the latter date were $2,107,000 less than a year ago. The borrowings of these banks from the Federal Reserve Bank amounted to $860,000 on May 13, as compared to $582,000 five weeks earlier and $629,000 on May 14., 1930. May 15, 1030 $ 60,900 7,706 4 6,056 25,637 7 40,070 63,1 03 31,262 The loans of member banks in selected cities, which have declined steadily since the peak was reached last October, reflected a further sharp drop during the five-week period ending May 13 and on that date were $4,7,149,000 less than on the corresponding date in 1930. Loans on securities were reduced $2720000 !between April 8 and May 13, and on the latter d~te ~ere $27,499,000 below those on May 14, 1930. "All other loans" (largely commercial) declined $6,831,000 during the fivewee~ p.eriod and ,,:,ere $.19,650,000 less than a year ago. WhIle mvestments m Umted States securities declined $1 _ 533,000, this reduction was more than offset by an increa;e in investments in other stocks and bonds. On May 13 the investments of these banks were $29,749,000 greater than a year ago. T.be net demand deposits of these banks have ' 0 DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) - Combined Total Reservo City Banks Country Banks Net domand Timo Not demand Time Net demand 'rime depceit. deposits depeaits deposits deprsits doposits April, 1930 ..... . S030,020 $237,274 $271,647 $138,980 $358,382 S 08,204 May, 1930.... .. 023,282 241,429 200,958 142,181 353,324 99,24 8 Juno, 1030...... 603,020 244,026 200,854 143,753 342,100 100,273 July, 1030.... .. 691,505 240,952 261,127 142,482 330,438 08,47 0 Aug., 1930.. .... 579,002 241,200 250,176 141,075 322,016 00,fi9 4 Sopt., 1030.. ... . 592,530 237,505 202,310 139,940 330,220 97,65 5 2 Oet., 10aO...... 593,126 237,045 205.782 141,158 327.344 06,7~3 Nov., 1030.. . . .. 588,534 239,453 20~,706 142,250 321,738 07,2 0 1 Dee., 1030...... 574,004 235,110 202,124 139,000 312,7flO 95,20 0 Jan., 1931.... .. 505,388 232,000 258,313 141,257 307,075 01,7 Feb., 1031...... 576,803 236,250 204,844 143,681 311 ,050 0 2 ,6~~ Mar., 1981.... .. 507,408 234,767 203,123 143,080 ~04.345 91,6 April, 1031. . ... . 567,009 234 ,141 269,207 142,580 297,802 01,552 I MONTHLY BUSINESS REVIEW Cbarges to depositors' accounts at banks located in principal citi.es in this district aggregated $654,,4.64.,000 during April, as compared to $660,045,000 in March, and $844,809,000 in April last year. The decrease from the previous month amounted to only 0.8 per cent, being smaller Debits to Individual Accounts ~ than the usual seasonal decline which occurs in April. As compared to the corresponding month in 1930, there was a reduction of 22.5 per cent. Acceptance The volume of acceptances executed by Market member banks in the Eleventh Federal Reserve District, which amounted to $2,461,205 on April 30, reflected a further seasonal decline from the previous month. Acceptances outstanding on March 31 totaled $3,056,4.01, and on the last day of April, 1930, the volume was $3,811,264.. Acceptances based on import and expor t transactions decreased from $1,774~ 34,2 on March 31 to $1,375,329 on April 30; those executed against the domestic shipment and storage of goods were reduced from $1,282,059 on the former date to $1,085,876 on the latter date. Savings Savings deposits, as reported by 85 banks Deposits in this district, totaled $149,884,,4408 on the last day of April, reflecting a decrease of 0.9 per cent from a month earlier and a decline of 0.8 per cent from the volume of April 30 last year. This is the fIrst time since March 31, 1930, that savings deposits at the close of any month have failed to show an increase as compared to the same date a year earlier. The number of savings depositors on the books of 78 of these banks rose from 326,618 on the last day of March to 327,835 at the close of April, and on the latter date was larger than a year ago. ........................... .............. DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollarol Abileno . . ....... Austin . . . ....... gea~mont ....... Dormoaua . ...... alias .......... W PMo" ....... I Gort Worth .. .... galveston ....... ollston. . . . . ... . fort Arthur . . ... taswell . . ..... .. gan Antonio ..... iHevoport ...... cxnrkllua· ... .. . ueson ..... . . ... VIlCO ........ . . . Wiohitll Falls .. . . r April 1031 $ 6,200 18,068 21,052 3,647 162,304 26,074 72,327 20,675 100,788 7,616 2,766 70,103 31,570 10, 146 0,983 11,623 17,0:13 April 1030 S 7,687 24,833 26,131 5,755 237,646 38,466 05,120 26,167 183,205 10,071 4,035 80,002 30,795 14,236 11,270 14,040 23,464 Percontage oiump;o ovor Year - 18 .2 -23. 0 - ]0 .4 -36. 6 - 31.7 - 20 .0 - 2'1.0 -2 1.0 - 12.:3 - 30 .0 -31.4 - 13.4 -20.7 - 28.7 - 11. 5 - 22.2 - 2'1.0 Maroh 1 0~ 1 $ 5,760 20,023 20,368 4,000 106,706 28,040 72,54 1 24,208 155,045 7,51·1 2,752 09,672 33 ,828 0,264 0,623 12,1 38 15,1) 11 Percontago ohango over Montb + 0. 0 - U.3 + 3.4 -2 1.7 - 2. 7 - :1 .8 - .3 - H .O + 3. 1 +l.4 + .5 + + + 6.7 n. 5 3 .7 4 .3 10 .8 -I- .6 --- --- --- --- --- - $ GBO,fl.! 5 - 22. 5 S 8'14,800 .8 1'Otlll." .. S 654,464 . ~ Includes tho figures of two blinks in Tcxnrknnll, Arkll n""S, locnled in tbo Eighth DISlrtot. , = - ~ .. , ..... . . . ...,.. SAVINGS DEPOSI1'S Nnmber of Reporting Blinks g el\u mollt ...... . . ... ...... ~I'~~~::::::::::::::::::: Gort Worth .. . ....... ..... . nalvestou .. . ..... ... ...... 1 OURtO .......... .. ..... . . Il ~ort Arthur .. .. ........ . . . SOli Antonio ............... \~,~~voport .... .. ...... .. , . W' ~ ............ . ........ hllohllo Foils ...... . .. . .... I otbers . .. . ............. 4- 4 2 2 a 11 2 7 44 2 40- -- April 30, 1031 Number or Amount of Savings Sllvin(lll Dopositoro DepOSIts 6,500 S 2,602,529 24 ,61 '1,198 63,688 5,:laO,611 15,726 21,200 7,855,5:15 8,072,734 13,750 35,385,880 88,005 1,833,068 4,808 24,610,604 40,826 l a,081 ,11l7 2.1,1 08 10,458 U ,260,585 1,400,383 3,708 18,700,678 37,828 April 30, lOaD Number of Amount or Snvings Savin~s Dopositors Doposits 5,732 S 2,(j41,477 08,018 20,151,152 10,352 0, 1 3(j , ~7 0 18,5UO 7,:lOU, IUI .1 :l,85:1 8,IUO ,420 85,200 34,00 1, 701 4,7[,0 1,786,42U 37,248 22,230,300 22,510 12,106,726 10,455 6,8G4,07a 3,786 1,727,:187 ,677 aO 20,004,241 PerQonb~o Chougo Ovor YOlIr in Savinlt' Deposits - 1.0 - 5.0 - 13. 1 + U.O - 1.1 -I- 1.2 -I- 2.6 + 10 .7 + 8.1 - 8.0 - 13.7 - 10.2 --- ---- --- - ~ 27,056 S151,037,014 327,836 ~ 1 40,884,448 .8 85 '1'otlll .... . ... -Ouly throo blinks in lloauUlont, threo in Shrovcport, lind tbirty-five in "All other"" rellorted tho numbor or ullvings dOllooitors. March 31, 1031 Number of Amount of Suvings Savill!!" Dopositors DepOSIts 5,510 $ 2,502,005 03,783 25,231,223 15,002 5,303,050 21, 187 7,770,026 13,718 8,188,054 88,704 36,016,536 4,855 1,830,085 40,322 24,408,077 20,820 13,085,140 10,508 0,265,612 3,084 1,593,658 37,520 18,760,631 --326,618 }'orcontnr.o Chongo Over MO in llth Snvillgs Doposits 0.0 - 2.'1 .0 +1.1 - 1.4 - 1.8 + .2 + .0 0.0 - .2 - 0.4 0.0 $151,176,015 - - .0 .... ............. ........... ............ .. - = .- MAY DISCOUNT RA1'ES Provailing nIltes: ]),,11,," - Rato obarged oUBtomers on primo oommercilll paper such lIS is now oligible ror redisoount under tho Federal Reserve Aot ......... . . . ......... . ... . . . . ...... Rato oharged on lonns to other banks secured by bills roceil'oble . . . . ............... nnl~ on loans Rcourcd by primo stook o<ohnnge or other currcnt collnteflll (not inoludi ng loons Illoeed III other lIIarkets through correspondent blinks): Demand .. ................... ·· ·· ... ·· .. · .. ····· .. ·· · ··· · · .. ·· .. ·· ... 'riIno ...... . ...... . .......... . .......... . ............. . ................ fiato ohorr.ed on commodity popor soourC'l by warohousc reoeipts, eto . ....... ... .. . . -..!!to on eatt!" loalls . ....... . ....... . ..... . ............. , . . . . . . . . . . . . . . . . . . . . Bll'n..'1o ]o'ort Worth 4-6 5- 6 8 0 4- 0 5- 6 5- 6 4M-5 6- 6 5- 6 5J,~-O 5- 6 S-8 5- 0 5-7 S 6-8 8 8 1 \-8 6-8 6- 7 6-8 5-6 5- 6 5- 6 7- 8 6-8 6-8 0-8 6-8 6-8 0- 8 6-8 7-8 IIonBton San Antonio W"eo 0- 8 6. INDUSTRY Textile A recession in activity at reporting textile mills in the Eleventh Dislrict was reflected by declines in the consumption of cot~?11, production of cloth, and a falling off in new orders. lJ~cl'e were only 1,867 bales of raw cotton consumed by these ll'lllls durin g April as compared with 2,026 bales in March ~I~d 2,278 bales in April, 1930, The production of clolh dehned about 1 per cent from the preceding month and was ~8.9 per cent below the output in the same month a year ago. ew orders received during the month amounted to 1,093,081 POUnds of cloth, which represents a decline of 2,7 per cent Milling compared with the previous month, and was 2.6 pel' cent less than in the corresponding month of 1930. Stocks of finished products on hand at the close of April were greater than those held at the close of both preceding comparative months, The United States consumption of colton totaled 508,744 bales during April, which reflects an increase of 3.7 per cent from the 4,90,586 bales consumed in March and a decrease of only 4,.4, per cent from the April, 1930, volume of 531,911 bales. While the latter comparison is not quite as MONTHLY BUSINESS REVIEW 6 favorable as in the previous month, it is encouraging from the standpoint that consumption during these two months shows a decided let-up in the long period of declining cotton consumption. During the first nine months of the present season, consumption was 19.6 per cent less than in the corresponding period of the 1929-30 season. TEXTILE MILLING STATISTICS-TEXAS Number balos consumod .. .... . ........ . . .. Number spiudlcs aotivo ... ....... ... ...•.. Number pounds cloth produced ....... ... .. April 1031 1,867 80,024 817,770 April 1030 2,278 81,04'1 1,008,127 Mllrch 1031 2,026 78,060 824,303 COTTON CONSUMED AND ON HAND (Bales) April 1031 Cotton growing states: Cotton oonsumed .. .. ....... On band April 30 inConsuming cstablisbmcnte. Publio storago and oompresscs .. .............. United Slates: Cotton consumed ........... On band April 30 inConsuming cstablishment.!. Pu blio storago and comprosscs ............ . ... April 1030 August 1 to April 30 This Senson Last Senson 300,418 512,232 3,081,520 ........ 1,001,380 5,632,775 3,381,760 508,744 531,011 :3,800,272 4,818,208 ... , .. .. . ... .... ........ 1,370,044 1,062,215 6,034,205 COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bales) 1,223,136 ........ The aggregate of foreign exports of cotton from the United States again reflected a substantial increase over the corresponding month last year, but declined seasonally from the high March volume. There were 391,871 bales exported during April as compared to 605,461 bales in March, and 349,762 bales in April, 1930. Exports during the nine months of the current season ending April 30 amounted to 5,909,729 bales as against 6,120,526 bales in the same period of the previous season. Due to favorable activities in the textile industries of Japan and China, imports of American cotton have shown substantial increases this season compared with the previous season. Takings by France also showed a considerable increase. 3,755,252 . ....... . ....... close of the month was smaller than at the end of March, but continued to exceed that a year ago by a wide margin. 3,637,046 ........ lloeoipte . . ... . ... . .......... . ]~xporta ... ... . , .. , .... • ..... Stooks, April 30 ....... .. ..... . April 1031 58,056 57,530 April 1030 42,005 83,024 August 1 to April 30 '1'his Bonson LlI8t SIlMon 1,511,804 1,861,220 1,137,522 1,680,045 550,531 256,770 COTTON-GALVESTON STOCK STATEMENT (Bales) The operations of cottonseed oil mills in Texas and the United States reflected a noticeable seasonal decline in April, and at the latter mills continued on a smaller scale than a year ago. The receipts and crushings of seed during the period from August 1 to April 30 of the current season were slightly less than in the corresponding period of the preceding season, and production of products, with the exception of hulls at Texas mills, likewise reflected declines. Stocks of oil on hand at the close of April showed a further decline from those a month earlier. Supplies of other products were smaller than those held at the close of the previous month but greater than a year ago. Cottonseed Products STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS 'rexns Uni ted States August 1 to April 30 Augu.t 1 to April 30 This Senson Lnst Season This Senson Lnst Senson Cottonsoed receivod at mills 1,230,105 1,247,683 4,612,740 4,886,583 (tons) ..................... 1,255,882 4,562,850 Cottonseed orusbed (tons) ..... 1,220.041 4,728,681 11,743 95,207 107,303 Cottonseed on band (tons) .... . 26,857 Crudo oil produced (pounds) ... 359,341,184 371,608,8361,302,117,0801,477, 104,807 2,087,157 2,102,480 580,400 500,531 Cake and menl ~redUced (tons) Hulls produced tons) ......... 345,131 335,472 1,261,058 1,304,110 Linters produced (ruuning bales) ............. .. ...... 180,575 264 ,880 705,575 075,059 Stocks on band April 30: 7,006,636 13,320,345 32,340,167 40,082,454 Crudo oil (pounds) ........... Cake and meal (tons) ......... 50,503 45,075 253,600 120,052 40,121 Hulls (tons) ...... . .. ... . .... 22,102 00,173 66,457 Linters (running bales) ........ 224,404 63,005 61,157 271,824 Apri130, 1031 For GrOAt Britain ...... . ....• . ............•...... . ... 2,500 For Franco ......................................... . 2,500 For othor foreign ports ................. . .......... .. . . 15,000 Con.twise ports ....... .. ......... . .•.... ... ....• . .... 1,000 ) n compresses nnd dopots ............................ . 538,534 1'otnl. ... . ........... .. ............ .... . 550,534 Apri130, 1030 0,300 4,300 24,000 1,500 220,670 256,770 COTTON MOVEMENTS THllOUGH THE PORT OF HOUSTON (Balcs) llccoipte ....... .. ........... . Exporte ........ . ...... ..... . Stocks, AjJril30 ............. . . April 1031 23,702 150,723 April 1030 31,884 112,070 Auguat 1 to April 30 This Bonson Lnst Se"son 2,800,673 2,570,012 1,764,388 2,046,332 1,030,805 716,307 SE~SON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTS-(Bnlcs) August 1 to April 30 'I'his ScatIOU Last Sc:)8011 llocolptR ......... .... ........ . .......•... ... .. 8,717,010 8,202,162 E[ports: United Kingdom ....... ..... ......... :: : : : : : 070,838 1,179,208 882,044 768,544 408,763 002,382 1,455,760 1,546,251 607,308 703,061 1,023,850 041,352 AI other countries .......................... . 560,248 370,728 5,000,729 6,120,526 Stocks nt April 3,562,014 1,682,652 ~¥~ • • >: • .• • • :. Jl°ii.;i~~t~~:r~o~i8 30:: :::::::::::::: ~ Cotton Movements Exports of cotton through the port of Houston during the past month reflected a decline as compared with the unusually high March volume, but again showed a substantial increase of 34.5 per cent over the corresponding month of 1930. Exports from Galveston evidenced a noticeable recession as compared with both the preceding month and the same month last year. Receipts of cotton in April at both ports were smaller than in the previous month, but at Galveston they were larger than in April, 1930. Cotton on hand at the ~ SPOT COTTON PRICF.8-(Middllng BlI8is) (Conte per pound) New york ....... ..... ..............•.... ~~li~.r~~:'.s:::::::::::::::::::::::::::: : g~I:~t':,~:::::::: :::: :::: ::::::::::::::: April, 1031 High Low 10 .ns 0.75 10.:13 0.52 0.80 0.15 10 .35 0.60 10 .50 0.65 - Mny 15, 1031 0.50 0.20 8.80 n.25 0.40 ~ 7 MONTHLY BUSINESS REVIEW BoLh the total and the daily average production of crude oil in the Eleventh Federal Rcscrve District during April were at the highest level on record, due to the immense expansion and unrestricted output of East Texas areas. The month's aggregate producti?n amounted to 28,58] ,200 barrels, reflecting an increase of 3,328,850 barrels over the previous month and a gain of 2,172,700 barrels as compared to the same month last year. There were 4,75 wells completed during April, of which 008 weI' producers wiLh a tOLal initial output of 1,662,775 barrels. This compares with 34.7 completions during March, of which 156 werc producers yielding a flush production of 506,148 barrels. In April, 1930, both Lhe number of wells completed and the number of producers were larger than in the same month this year, but the initial yield of new wells Was comparatively small. Petroleum The daily average output or fields in Texas rose from 734',434, barrels in March Lo 874,,152 barrels in April, reflecting an increase of 154,,547 barrels in daily production of the eastern section of the StaLe. WiLh the exception of the Gulf Coast, which contributed an increase of 7,299 barrels, a~l other regi ons showed reductions in daily average yield. ~Ince May 1, the adoption of proration measures in East ,rex as and, to a lesser extent, the appearance of salt water In many wells, have had the effect of reducing appreciably ~he daily petroleum output of that section. Daily production III both New Mexico and North Louisiana reflecLed a further decline as compared to the previous month. " !?n April 21 the posLed price of Texas CoasLal oil, grade A, was reduced $ .10 per barrel. CIW1)E orr, l'ruCJ~S 'foXII8 Conatnl grado " A" .. .......................... .. Norlh Texlls nnd North Louisi.nn (40 gr .• nd .bovo) ...• "Prico p.id for oil 44 gr .• nd .bovo. Mny 12, 1031 S .70 .67 Mny 13, 1030 $1.15 1.57" (Oil Btutisties c01ll[liled by Tho Oil Woekly, Houslon, ToxlI8.) OIL PRODUCTION- (Bnrrel9) North '1'oxna ................ . Contral West 1'oX88 .......... . Enst Contral Toxna . . ...... . . . '1'ox88 COllstal. ... . ........ . . . Sou til '1'oX88 .... . ... . ....... . 100r0880 or DoorC880 Over Mnroh,1031 April, 1031 Total Daily Avg. Totnl Dnily Avg. 717 3,353,U50 111,708 - 134,000 7,458,350 248,612 - OS2,ooo - 13,012 8,773,250 202,442 +4,408,500 +154,547 1,757,500 158,583 + 67,700 + 7,200 1,881,500 62,717 - 323,106 - 8,300 'fotal 'fCX88 . . . . .. . .. 26,224,550 Now Mexico ... . .......... . .. 1,185,250 North Louisi.nn............. 1,171,400 Totnl District... . . ... 28,581,200 --- +3,457,100 874;152 39,508 30,047 +130,718 363 - 50,750 - 1,240 77,500 - - - ---052,707 - - +3,328,850 +138,115 d APRIL DRILLING RESULTS G88 Wclls 8 7 1 3 Failuros 46 22 24 25 12 Initial Production 2,307 16,564 1,611,805 5,052 20,870 301 1 6 19 6 120 1 12 1,656,688 5,190 807 308 156 25 17 142 174 1,662,775 506,148 North Texna ............... Conlral Woot '1'0188 .. ....... E88t Contral 'l'exlI8 ... . ..... South TOlna ..... ...... . ... 'rel88 C088tal. ............ . Complotions 75 54 237 42 41 Pr()o dUQOMl 21 25 212 Total 'l'CXIl9 ........ . Now Moxico ............... North Louisiana .......... .. 440 2 24 AJlril totals, distriot .... .... Mnroh totals, distriot .. ..... 4;5 347 14 20 (Oil stntistics c01llJliled by The Oil Weekly, Houston, Tcxna.) Building Construction permits issued during April at leading centers in this district reflected 11 substantial improvement of 34.4 per cent as compared to Lhe previous month, but they were 42.7 per cent below the level of April last year. The total valuation of building permits issued during the month was $4,,4.12,719, as against $3,284·,01l in March, and $7,707,175 in the corresponding month a year ago. While Galveston showed the largest expansion in activity during April, the cities of Amarillo, Austin, and San Antonio also reported material increases over both the previous month and the same month last year. The volume of building permits issued during the first four months of 1931 was 4,0.5 per cent smaller than that of the corresponding period last year. BUILDING PERMI'l'S April, I031 - ~lnllrillo ...... . nuRtln ......... Coaumont ...... D~Ir.UR Christi .. El plI8 · ........ F 1180 ........ Gort Worth ..... 1I"lv08tOIl ...... l' ouston ........ &rt Arthur .... 8hn Antonio .... W~~~oport ..... Wichii~ 'Full!: : : __"otal ... ... No. V.luntion April,1080 No. ----- 51 $ 377,575 228,518 93 132 121,412 10,637 40 510,273 108 183,006 88 230 410,009 370,081 130 421 1,130,782 12,434 52 27 1 544,894 153 88,816 26 63,007 6,875 l3 Vnluntion 82 S 286,212 107 168,380 1<14,314 151 55,275 66 306 1,034 ,035 119 524,965 844,700 366 123 85,8'lU 305 2,850,831 127 00l,5G8 254 370,U05 123,570 195 189,473 64 24 117,130 ------- --2,462 $7,707,175 2,117 ~4,4 1 2,7 1 0 Percellln~e Chllnge ValuntlOn Ovor Year + 31.0 + 35.7 - 15 .0 - 64.5 - 47.8 - 65.0 - 50.3 +312.6 - 50.0 - 08.0 + 46 .0 - 32.2 - 66.7 - 94.1 --- 42.7 Murch, 1031 No. Porcontugo Chllngo Valuntion Over Vnluntion Month --- 35 S 88,285 83 132,264 124 142,532 70 78,055 326 546,255 80 148.202 200 300,275 144 07,120 340 1,004,067 68 361,604 232 185.043 152 74,852 33 43,067 15 10,501 oog + --- - - - -+3U 1,011 $3,284,011 While there was a further appreciable ex[ansion in the output of Texas portland ~hlnent mills during April, the volume was materially below or the corresponding month last year. There were 585,1 barrels of cement produced during the month, as against '1 89 ,000 barrels in March and 757,000 barrels in Apl'il a eUr ago. ShipmenL following the same tl'end, totaled 581,s, CC/J1ent +327.7 + 72.8 - 14 .8 - 7'1.8 1.1 24. 0 + 30 .7 +29 1.2 + 34 .3 - 96.6 +193 .0 + 12 .0 + 43 .3 - 64.7 Four Months Perccnt./lo Change 1031 1030 ValuatIOn Ovor Period Valuntion No. Vnluation No. 248 $ 801,726 100 $ 1,356,644 +52.1 1,206,746 -21.2 325 1,021,711 308 400,872 568 060,846 -58. 7 400 140,740 245 628,l46 - 76 .2 185 2,180,047 1,323 2,055,422 -26.2 1,342 521,356 523 1,382,662 -62.3 324 1,446,404 064 3,2OS,35G -55. 7 823 G92,888 405 437,707 510 +35.4 6,562,623 1,330 4,850,258 1,301 - 30.2 430 1,300,485 -62.8 250 483.146 1,187,320 1, 188 3,283,170 017 -63.8 346,316 701 637,260 -45. 7 540 112 204,051 150 583,548 -64. 0 40,376 51 03 665,668 -03.0 7,407 $14,782,122 8,726 S 24,860,454 ---40. 5 000 barrels during the month, being 27.4 per cent larger than in the previous month but 25.0 per cent less than in April, ] 930. Stocks increased only slightly and on April 30 were 5.8 per cent smaller than a year ago. Total production and shipments during the first four months of the current year were, respectively, 25.4. per cent and 23.9 per cent smaller than in the corresp onding period of 1930. MONTHLY BUSINESS REVIEW B~ ______________~~~ _________________________________ ......................................... ........................................ . . ".. PRODUOTION, SllPMENTS, AND STOOKS OF PORTLAND OEMENT (In thousands of barrols) April,1031 Peroentage Ohunge Number Month +19.6 +27.4 +.5 585 581 777 Over Jauuary through April 30 Yenr Number -22.7 -25.0 - 5.8 1,082 1,705 Peroentage Ohange Over Yenr -25.4 -23.0 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Oompiled by the Federal Reserve Board as of May 21, 1981) Output of manufacturers and employ~ent at factories showed little change from March to Ap~'II, and output of mines, which ordinarily decrease~ at thIs. season, also . remained unchanged. Wholesale pnces contlllued to declIne, and money rates eased further. PRODUCTION AND EMPLOYMENT Industrial production, as measured by the Board's seasonally adjusted index which covers both manufactures and mines increased from 88 per cent of the 1923-1925 average in M~rch to 89 pel' cent in April, compared wi.th 82. ~er cent, the low point reached last December. Steel mIll actIvIty declined by considerably more than the usual seasonal amount while in the automobile industry there was a larger than se~sonal increase in output, according to preliminary reports. Consumption of cotton by domestic mills continu~d to increase, contrary to the usual seasonal movement, whIle there was a decrease in unfilled orders for cotton cloth, which was only partly seasonal in nature; consumption of wool, which ordinarily declines in April, increased considerably; at silk mills activity declined. There 'Yere large ~n creases in the output of petroleum and anthracIte coal, whIle production of bituminous coal declined by about the usual seasonal amount. The number employed in factories at the middle of April was about the same as a month earlier. In car building shops and in establishments producing machinery, employment decreased considerably, while in the automobile and cement industries there were seasonal increases, and in the fertilizer industry a larger than seasonal increase. Employment at textile mills declined by less than the seasonal amount, reflecting chiefly a slight increase in employment at cotton mills, and a small decrease in the clothing industry; at mills producing woolen and silk goods declines in employment were larger than usual. Factory pay rolls declined somewhat in April. Value of building contracts awarded, which fluctuates widely from month to month, declined considerably in April, according to the F. W. Dodge Corporation, and decreases were reported in all the leading classes of conslruction. In the first four months of the year total awards decreased 26 pel' cent from the corresponding period of 1930, reflecting declines of 10 per cent for residential building, 17 per cent for public works and utilities, 25 pel' cent for educational building, 43 per cent for factories, and 57 per cent for commercial buildings. DISTRIBUTION Freighl-car loadings showed about the usual seasonal increase in April. Department store sales increased 9 per cent from March and the Board's index, which makes allowance for the usu~l seasonal variations including changes in lhe date of Easter, stood at 105 per cent of the 1923-1925 average, compared with 97 per cent in March. , WHOLESALE PRICES The general level of wholesale prices declined 1.6 pef cent further in April, according to the Bureau of La~or Statistics. In the first half of May, prices of many leadmS commodities were reduced further, and for the six-week period as a whole there were large declines in the prices of cotton, silk, and textiles; livestock and dairy products; cement, petroleum products, and nonferrous metals. BANK CREDIT Loans and inveslments of reporting member banks i!l leading cities declined by about $150,000,000 between ARrJ 1 1 and the middle of May, reflecting substantial liquidatIOn in loans on securities and in all other loans, largely co)1l' mercial. This liquidation of loans was offset in part bY furlher large additions to the banks' investments, which ?ll May 13 were over $1,000,000,000 larger than at the begIn' ning of the year. Volume of reserve bank credit declined somewhat in the six-weeks ending on May 16. Contrary to the usual seasonal tendency, there was some further increase in currency demand for the period, reflecting chiefly banki~S distu.rbances in the Middle West. Gold imports continued.~ consIderable volume and supplied the member banks WI sufficient funds to meet the additional demand for curreneYk and also to reduce somewhat the amount of reserve ban' credit outstanding. Money rates declined lo new low levelS during May. Rates on bankers' acceptances, which had de: clined from llh per cent in the middle of April to 1% pe~ cent by the end of the month, were reduced to % per cend by the 19th of May. Rates on commercial paper decline t from a range of 2~-21h to a range of 2-2~ per cent. A lhe reserve banks buying rates on bankers' acceptances we.re reduced in April and the first half of May, and in May dIS' count rates were also reduced, the rate at the Federal Re' serve Bank of New York being lowered to lY2 per cent.
@FedFRASER