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----MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents
C. C. WALSH
Chairman and Federal Reserve Agent
(Compiled May 15, 1934)
Dallas, Texas, June 1,1934
Volume 19, No.4
........
This copy is r eleased for pubI1cation in morning paper s-
May 30
DISTRICT SUMMARY
THE SITUATION AT A GLANOE
Eleventh Federal Reservo Distriot
Ohango from
Maroh
April
1934
~
debita to Individual accounts (at 17
Deities) . . .. . . ... .. . ... . ..... . . .. ... .. .. .. .
epartment store sales ....... . .. . . .. .. .. ... .
csfrve bank loaus to member banka at end
~ montb ....... .... . .. ..... .... .... .. .. .
B . erve bank ratio at ond of month . .. . . . . . . .
Cullding permit valuation at largcr centers ... .
CommerCial failures (number) ... . . . . . .. .. . . . .
Olmmeroial failures (liabilities) .. .... . .. . . . . .
...!..E!oduotion (barrels) .......... .. ... .... ..
n
aBusiness and industrial activity
$524,717,000
243,012
61.1 %
S 1,006,5~~
$
425,629
31 ,767,000
- 5.3%
- 11 .7%
+ 82 .1% pOlUts
.
2. 2
+ 1.8~
-
+
10.7:1'9
- 26 .7'10
0.0
In the Eleventh Federal
eserve District was fairly well sustained during the past
~onth. Retail distribution in larger cities, as measured by
epal'tment store sales reflected a decline of 12 per cent as
compared with the h~avy March volume, but was 16 per
;nt larger than that of the corresponding month in 193~.
hUe the recession in wholesale trade from March to ~~nl
~vas larger than usual in most lines, this was not surpnsmg
In View of the greatly increased voluI?e d~ring the. first
qUarter of the year. Sales in all reportmg hn~s contmued
to reflect substantial gains over the correspondmg .month a
Year ago. Collections generally showed a seasonal I~pr?Ve·
ment. Debits to individual accounts at banks in prmcIpal
~enters were 5 per cent smaller than in March, but were
9 per cent above those in April, 1933.
Commercial failures in this district in April were s~ightly
~ore numerous than in the previous month, but the mde~~
ness of defaulting firms was smaller. As compared w~
a year ago both the number and liabilities of commerCIal
fall
'
Utes declined by more than 50 per cent.
fo llap~d progress with agricultu.ral operation~ were made
llowlDg the rains late in Apnl and early m May. The
corn crop generally is doing well and the planting of cotton
is nearing completion in all sections except Northwest
Texas. In the older cotton sections a considerable portion
of the crop is chopped to a stand and fields generally are
in a good state of cultivation. While the heavy general rains
were very beneficial and furnished much needed moisture in
the dry areas of West and Northwest Texas, the north winds
which followed have dried out the top soil in many sections
and more rain is needed immediately to stimulate crop
growth. Livestock and their ranges showed a sharp recovery
during the past month. Except in the drouth areas, range
grass has made good growth and livestock are putting on
flesh.
Member bank borrowings at the Federal Reserve Bank
reflected a gradual expansion during the past month, but
they continued in small volume. The combined net demand
and time deposits of member banks declined seasonally in
April, the daily average being $715,94.5,000, as compared
with $728,121,000 in March, and $580,951,000 in April last
year. Their reserve deposits at the Federal Reserve Bank
showed considerable fluctuation between April 15 and May
15, but on the latter date totaled $118,089,000 which was
only $1,035,000 lower than a month earlier, and $68,484,000
in excess of those on the same date last year. The actual
circulation of Federal reserve currency amounted to $4.1,.
828,000 on May 15, as compared with $4,2,925,000 on April
15, and $38,260,000 on May 15, 1933. While the invest·
ments of member banks in selected cities declined sharply
between April 11 and May 9, their loans reflected an in·
crease.
Building activity evidenced little change during the
month. While the April valuation of building permits issued
at principal cities was 2 per cent larger than the March
volume, it was 6 per cent lower than a year ago.
BUSINESS
1J7h 1
l' 0 esale
1 l'
if
witnessed reflected in March, but it should be observed in this con·
A moderate eve mg 0 was
.
nection that in April, 1933 a contrary to seasonal expan.
rade
during April in the sales of merch~ndIs: sion occurred in the business of all wholesale lines except
E\
by reporting who~esale firms ~n tl;t
drugs. The general sentiment of wholesalers and retailers
d eVenth Federal Reserve District. WhIle some declme ill alike in most sections of the district continued to indicate
ll~m~nd normally occurs in this month, there were thre? reo that business is holding up satisfactorily. There was a ten.
CortIng .lines that showed larger. than seasonal reductIons: dency toward further enlargement of inventories in all lines
t' mparxsons with the correspondmg month a year ago con
except groceries,. and in every case the stocks on hand !he
InUed favorable and the increases ranged from 10.6 per last day of AprIl were larger than a year ago. Followmg
Cent· t h '
27 4
t' the case of
f In e case of groceries to 1 . ' per cen m
the seasonal tendency, which is usually upward in April,
arm implements. None of the gains were as large as those
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
--------------------------------------------------------------------------------------------------------2
MONTHLY BUSINESS REVIEW
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collections in all lines except groceries were larger than
those in March.
The distribution of dry goods through wholesale channels
showed a material recession during April, only part of the
21.3 per cent decline being attributable to seasonal influences. Dollar sales were 25.7 per cent larger than in the
same month last year, and a similar expansion of 78.6 per
cent was registered in the period from January 1 through
April 30. The inventories reported by wholesalers in this
district reflected an increase of 6.1 per cent during the
month, and on April 30 were more than twice as large as a
year ago. The month's collections exceeded those of March
by 1.4 per cent.
The demand for hardware at wholesale was well sustained during April, total sales being approximately as
large as in March. The increase over a year ago amounted
to 54.3 per cent, and in the period from January to April,
inclusive, there was an expansion of 67.0 per cent as compared with the first four months in 1933. Inventories rose
4.4 per cent during the month, but remained only 2.3 per
cent above those on April 30 last year. The rate of collections during the month reflected a further pick-up.
A decrease of 12.2 per cent, slightly larger than seasonal,
was shown last month in the demand for drugs at wholesale in this district. The comparison with the same month
in 1933 held up fairly well, there being ap increase of 25.2
per cent in April as against 36.9 per cent in March. Stocks
on April 30 were 1.3 per cent above those a month earlier
and n.s per cent greater than a year ago. Collections increased somewhat as compared with the March volume.
Following the contrary to seasonal increases which occurred in the two preceding months, a falling off of 20.3
per cent was reflected in the April business of reporting
wholesale farm implement firms. Nevertheless, a considerably stronger demand was visible than at this time last
year, as evidenced by the fact that sales were 127.4 per cent
larger than in April, 1933. Prices showed an upward tendency during the month. There was an increase of 16.7 per
cent in the volume of collections.
As is usually the case in April, a small decline was reported in the sales of wholesale grocery firms in the
Eleventh District last month. Business was 2.6 per cent below the level of the previous month, but 10.6 per cent
above that of the same month in 1933. Stocks on hand aJ
the close of April showed a slight reduction as co~parel.
with March 31. There was a decrease of 3.4, per cent In cO
lections during April.
CONDITION OF WHOLESALE TRADE DURING APRIL, 1934
Percentage of Increase or decrease inNet Sales
Net Sales
Stocks Ratio of ccll~i
April,1034 Jan. 1to date April, 1034 tions during Aprd
compared with compared with eompared witb to aocounts Jl~g
Apr.. Mar., same pcriod AIJr., Mar., notes outstbn1h
1033 1034 on Marc
1033 1034 last year
Groccries ......... + 10.6 - 2.6 + 21.8 + 30.0 - 1.0
81.3
Drygoods .. ...... + 25.7 -21.3 + 78 .0 +106.3 +0.1
32.2
5
Farm implemcnts .. + 127.4 -20.3 +245.4 + 12 .0 +7.1
6'0
Hardwarc ........ + 64.3 - .6 + 67.0 + 2.3 +4.4
51.
Drugs ............ + 25.2 -12.2 + 31.0 + 11 .5 +1.3
45.0
Following the appreciable increase:
consumer demand during March, . e
.
business of department stores In PnU'
.
cipal cities of the Eleventh District was well sustaine11U
April. Although a decline was registered during ~~ri. ad
compared with the previous month, its effect is mInlrnIzt s
after due allowances are made for the stimulating s~ e
factors that occurred during the earlier month. The distnrU~
tion of merchandise in April averaged 11.7 per cent e\
than in the previous month, but continued 16.3 per ceue
above that in the like month of 1933. The latter perce~tags
is even more significant when it is recalled that busIness
a
in April this year did not include "Easter" purchases as w •
ps;\"t
the case in 1933. The seasonally adjusted index of cle
ment store sales also evidenced the sustained business a~t25
ity during the past month, being 80.5 per cent of the 192 . d
average in April, as against 80.3 per cent in March, s~ e
only 66.8 per cent in April last year. Sales of merchandl~u
during the current year were 34.5 per cent above those I
the first four months of 1933.
'}
Stocks of merchandise held by reporting stores on AP:d
.
30 were 3.4, per cent greater than at the close of the precthe
ing month, and continued materially above those .on the
same date last year. The rate of stock turnover dunngrke
four months of 1934 was 1.00, as against .87 in the I
period of 1933.
Contrary to seasonal tendencies collections on open ~;h
counts during April evidenced a decline as compared WI a
March, but they remained in much larger volume than
Retail
Trade
BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
April, 1034, compared with ~ril, 1033 ..........................................
<\.pril. 1084, eompared with arch, 1034 ... . ......... .. ... ..... ..... ....... .....
January 1 to date compared with same period last year ............ ... ... .... .....
Credit sales (percentage):
. April, 1934, compared with ~ril, 1983 .. .... ... ....... ... .............. .........
April. 1984. compared witb arch, 1034 ........................................
January 1 to date compared with same period IOBt year ........ .... .. ... .. .... ....
Stoeks on hand at end of month (percentage):
April, 1084, compared with ~ril, 1938 ..........................................
April, 1034, compared with arch, 1034 ........ ........ ..... ...................
Stock turnover (rato):
Rato of stock turnover in April, 1933 ...........................................
Rate of stock turnover in April, 19a4 ....... ... ........ ................... ... ...
Rate of stock turnover January 1 to April 30, 1033 ...............................
Rate of Btock turnover January 1to April 30, 1934 .... ..... .. ............... .....
Ratio of April collections to accounts reoeivable outstanding April 1, 1084 ............. .
Ratio of April oollectioDs to installment Dccounts receivahle outstanding April 1, 1084 ....
Indexes of department store sales:
Unndjusted-APril 1034 .. .............................. ..... .. ......... .. ....
UnadJusted-Maroh ... .... ................... ... ......... .... ...... .....
,1934
~~i:::=:=tf:~h~~~~4·.::::::::::::::::::::::::::::::::::::::::::::::::::::: :
Indexes of department store stocks:
Unadiusted-~r\ 1084 ......................................................
UnadJusted- arc, 1034 .....................................................
~~i~:~~=tf::~h!~~~4·. '. :::::::: :::: :: :: :: :::: :::::::: ::: ::: :: :: :: :::: :::: :::
DaUas
+27.7
- 0.0
+44 .2
Fort Wortb
+ 7.2
-13.2
+25.1
+31.7
- 4.9
+45.2
+27.4
+ 6.1
.26
.26
.89
1.12
38.4
16.0
76.0
80.2
81.8
77.9
56.2
52.8
53 .6
52.3
+ 9.2
-12.0
+26.3
+16.0
+ 0.0
.20
.19
.70
.80
30.0
11.0
78.0
83.2
82.1
83 .2
71.6
07.6
68.8
05.6
Houston
+ 0.3
-13.1
+34.4
+10.8
- 9.9
+35.4
+29.4
+ 4.0
.30
.25
.06
1.00
30.9
86.5
04.3
00.1
96.8
47.1
40.3
45.7
46.3
San Antonio
+17.0
- 4.7
+31.7
+22.0
- 1.8
+86.1
+19.1
- 1.7
.34
.3a
1.10
1.22
41.5
71.1
70.1
n6
69 .4
41.6
42.5
39.2
40.1
Others
+10.1
-18.7
+25.7
+11.1
-10.6
+28.1
+26.7
+ 1.2
.21
.10
.78
.82
35.4
17.8
-
Total Distrlol
+10.3
-11.7
+84. 6
+20. 1
_ 8.1
+36. 9
+24. 4
+ 3.4
.25
.24
.87
1.00
37.3
14.8
76.7
80.3
80. 6
80.3
68.2
66. 4
66.0
64.8
------------------------------~~~~~~~~~~~~~~~------------------------------
MONTHLY BUSINESS REVIEW
S
------------------------------------------------------------------------------------~
year ago. The ratio of April collections to open accounts
Outstanding on April 1 was 37.3 per cent, as against 40.0
per cent in March, and 31.9 per cent in April, 1933.
~0'!tmercial
While the number of insolvencies in the
atlures
Eleventh Federal Reserve District inth
.
creased from ~8 in March to 31 in April,
e total mdebtedness of defaultmg firms was reduced from
$581,012 in the earlier month to $425,629 in the latter
month. The comparative figures reported by Dun & Bradstreets, Incorporated, for April, 1933, showed that 65 commercial failures occurred in that month and the liabilities
involved amounted to $852,051. The average indebtedness
of insolvent firms declined from $20,750 in March to $13.730 in the subsequent month.
.
AGRICUL TURE
Crop ConFarmers throughout most of the Eleventh
ditions
District have made good progress gentho
erally with farm work during the past
1rty days. Moderate to heavy rains have fallen over most
areas of the district including some sections where drouth
~nd' . '
1hons had prevailed for some time. Neverthe Iess, there
~r some portions in West and Northwest Texas, Southern
l' ew Mexico, and Southeastern Arizona which have had
I~ttle or no rain and farming operations .are being ret~rd~d.
th Olany l?calities throughout other sectIOns of the ~Istnct,
th: dry wI.nds during the first half of May hav.e d~'Ied .out
top SOlI and rains are needed to correct thIS sItuatIOn.
d ~he outlook for wheat in Texas was improved slightly
U~Ing April. The Department of Agriculture on May 1
h~lntated the prospective production of wheat at 25,749,00.0
1 shels, as against a forecast of 23,018,000 bushels ~n Apnl
Thand an actual production of 13,002,000 bushels m 1933.
e abandonment of acreage was placed at 30 per cent this
ar , as compared with 56 per cent last year. Production
1 Oklahoma was estimated at 35,880,000 bushels ~n May
a' S compared with 4.0,172,000 bushels a month earher, and
PIa arVest of 33,095,000 bushels last year. The Department
ced the abandonment of acreage in New Mexico at 60
~er cent as against 4.5 per cent last year, and the probable
roduction at 84,7 000 bushels whereas 1,210,000 bushels
\Vel'
74 e harvested in "1933. The Texas oat crop was rate d at
per cent of normal on May 1 as compared with 55 per
C
ent
h
. .
tn o~ t e same date a year ago. The crop IS now nearmg
th:turlty and harvesting has begun in the. south~r-? half of
pI State. The May 1 condition of oats In LOUISIana was
aced at 85 pel' cent as against 63 per cent last year.
h ~he Warm and generally fair weather during the first
tha of May was favorable to field work, with the result
t' at the seeding of cotton is nearing completion in all secIons f
. .
.
g O t he dlstnct except Northwest T exas an d IS rnak'mg
c;~d headway there. In South Texas practically all ~e
f p .has been chopped to a stand and the older cotton IS
Pl:OlIng squares. Chopping is becoming general in the .ea~ly
the nted fields in other sections. Over most of the dIstnct
h crop is later than a year ago, but recently th.e plants
aVe
local" rnade rapid growth While there are fields m many
h I
is' 1I1es .with weeds and grass, the crop as a woe
mfested '
lit:~ a good state of cultivation, stands are fair to g~od, and
ar
replanting has been necessary. Over a conSIderable
so~t of South, Central, West, and Northwest Texas. the to.p
h
has heen dried out by the north winds and mOIsture IS
••eeded
.
.
er II to correct this condition. Elsewhere mOIsture IS gena y sufficient for the present.
se~~e corn crop has made fair to good growth in most
are Ions of the district, stands are average, and the fields
tasser-ell cultivated. Corn in South Texas has reac~ed the
secI' Ing stage. Moisture is adequate for the present m most
Cro IOns, but additional rains would be beneficial to the
Pat The tame hay crop in Texas was rated by the De!ment of Agriculture at 74, per cent of normal on May 1
r:
h
as compared with 68 per cent a year ago, and in Louisiana
it was 75 per cent this year and 67 per cent last year. The
May 1 condition of tame hay was also higher than a year
ago in New Mexico, but it was lower in Oklahoma and
Arizona.
According to the Department of Agriculture, the condition of oranges and grapefruit in Texas on May 1 was 63
and 53 per cent, respectively, and compares with 81 per
cent on the same date last year. Conditions are spotted as to
loc~lities and varieties. The lower condition this year is
attrIbutable largely to the effects of the hurricane in September, 1933, which greatly damaged many of the trees.
The condition of the Texas peach crop was placed at 60
per ~ent of normal ?n Mar 1 as co~pared with 25 per
cent m 1933, and thIS year s productIOn was estimated at
1,980,000 bushels as against a harvest of 782,000 bushels
last year. The condition and prospective production of this
crop in Oklahoma and Louisiana are also higher than in
1933.
Livestock
A further rapid improvement in the con.
dition of ranges and livestock occurred
in most sections of this district during the past month. In
portions of West and Northwest Texas rains have broken
the long drouth, but there are still areas in those sections
and in New Mexico where little or no rain has fallen and
where the situation is becoming acute. Range vegetatio~ has
made rapid gr.owth in most s:ctions ~nd is providing good
pasturage. WIth ample grazmg avaIlable, livestock have
taken on flesh and are mending rapidly. The prospects for
calf crops in most areas are good and the new-born calves
generally are doing well. Lambing is about over and the
crop is reported smaller than last year.
The condition of Texas cattle ranges was rated at 82
per cent of normal on May 1 as compared with 74 per cent
on April 1 and 79 per cent a year ago. Sheep and goat
ranges at 80 per cent of normal on May 1, were 9 points
higher than a month earlier and 2 points above a year ago.
While the condition of cattle gained 5 points during the
month, the condition figure of 79 per cent on May 1 was
2 points lower than on the same date last year. There was
a gain of 7 points in the condition of sheep and 12 points
in that of goats. As compared with a year ago, the condi·
tion of goats was unchanged and that of sheep was 1 point
lower.
Movements
Contrary to the usual seasonal trend
and Prices
receipts of calves at the Fort Worth
market in April were moderately smaller
than in the previous month, but slightly larger than a year
ago. While cattle receipts were larger than in March they
showed a small decline from April last year. Sheep and
hogs yarded in April were substantially in excess of the arrivals in March, but fell considerably short of receipts in
April, 1933. Receipts of sheep at Fort Worth during the
first four months of the current year were less than half of
those in the same period last year.
:-------------------------------~~~====~~~~~-----------------------------------------------
4
MONTHLY BUSINESS REVIE.W
--------------------------------------------------------------The cattle market reflected an uneven trend during the
past month with a tendency toward lower levels. Neverthe·
less, quality stock usually found an outlet at good prices.
Hog prices reflected a steady decline throughout April and
then remained generally stable during the first half of
Cattle .. ..... ... .
Calves .......... .
Hogs .... . ..... .
Sheep . . ... . .... .
April
1934
S3,768
11,289
48,616
37,125
1933
34,624
10,622
53,462
134,727
Chango ovor
year
856
+ 667
- 4,846
- 97,602
March
1934
32,114
13,079
37,830
29,093
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars por hundredweight)
April
FORT WORTH LIVESTOCK RECEIPTS
(Number)
April
May. Sheep and lamb receipts were generally light and
offerings were usually taken at steady to firm prices.
Cbange over
montb
+ 1,654
- 1,790
+10,786
+ 8,032
BeeC steers ..... . ... . . . . . ..... .. ......... .
Stooker steers ............ . .............. .
Butober oows ........................... .
Stoeker oows ...... . .......... . .......... .
Calves .... . ............................ .
April
1934
$6.00
1933
$5.26
4.75
3.25
2.50
6.50
3.65
3.25
6.50
4:60
0:00
~:t':::::::::::::::::::::::::::::::::
4.30
5.00
9.50
March
1934
$5.75
8:26
6:26
4.70
5.00
10.00
FINANCE
Operations of
the Federal
Reserve Bank
Member bank borrowings at the Federal
Reserve Bank reflected a gradual expansion during the past month. These loans
rose from $205,000 on April 15 to $359,000 on May 15, and the total on the latter date compared
with $6,067,000 on the corresponding date in 1933. There
were 15 borrowing banks on May 15, as compared with
9 banks a month earlier, and 14,9 banks a year ago. There
was a further sharp decline in the holdings of bills purchased in the open market, the total on May 15 being only
$310,000 as compared with $3,361,000 on April 15, and
$508,000 on the same date last year. While investments in
Government securities showed no change during the month,
holdings at the middle of May were $27,536,000 greater
than a year earlier. The reserve deposits of member banks,
which amounted to $119,124,,000 on April 15, declined
rapidly during the last half of April, but the increase in the
first half of May brought the total to $118,089,000 at the
middle of the month. The latter figure was $68,4.84,,000
larger than that a year ago. There was a further slight decline in the circulation of Federal reserve currency. The
total on May 15 was $41,828,000 as compared with $42,925,000 on April 15, and $38,260,000 on May 15, 1933.
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands oC dollars)
May 15,
Total oBOh reserves ...................... .
Disoounts Cor member banko .. . .......•....
Other bills discounted ...... . ... , ..•.......
Bills bougbt in open market .. . ........... .
United States seourities owned ....... . .... .
Otber investments ..... . ........ . ........ .
Total enrning assets ..................... .
Member bank reserve deposits ....... . .... .
Federal reserve notes in aotual oiroulation .. .
Federal reserve bank notes in aotual oiroulatlon ................ . ... . ... . ....... .
1934'
$103,176
359
None
310
May 15,
1933
$46,881
6,067
None
April 15,
1934
$104,408
205
Nono
72,144
118,089
39,053
508
43,939
5
50,519
49,605
38,260
75,041
119,124
39,720
2,775
None
8,205
7~~~~
S,361
7~~~~
There was a further decline during the
past month in the investments and deposits of member banks in selected cities,
but their loans reflected a slight upturn.
Their investments in United States securities amounted to $149,4,36,000 on May 9, which represents
a decline of $12,852,000 as compared with April 11, but
a gain of $56,854,000 as compared with May 10 last year.
Since the peak was reached late in February, holdings of
Government securities have declined $45,381,000. Investments in other stocks and bonds, however, increased $1,264,000 between April 11 and May 9, but on the latter date
were still $3,070,000 less than on the corresponding date
in 1933. During the four-week period loans on securities
Condition of
Member Banks
in Selected
Cities
were reduced $1,800,000, but "all other" loans (largely
commercial) rose $2,134,,000. As compared with a year ~g?,
total loans on May 9 were $28,006,000 smaller. While .t elf
net demand deposits declined $3,885,000 between ApnIOOIO
and May 9 the total on the latter date was $58,073,.
greater than on the corresponding date last year. Their tJ:~
deposits rose $752,000 during the four-week period: ~.
were $2,4BO,000 below those a year ago. While their ~ I
serve with the Federal Reserve Bank showed a substan~ad
decline during the latter part of April, there was a mar e I
increase during the first part of May which carried the. to~~
on May 9 to approximately the same figure as on ApnI .
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In thousands oC dollars)
----------------------------------------------April 11,
May 9,
May 10,
United States scourlties owned . . ........ . . .
All otber stooks, bonds, and securitioa owned.
Loans on seouritioa ...................... .
All other loana .... . .•............... . ....
Total loans .............. . .............. .
Net domand deposits ...... . ............. .
'rime deposits . . ................ . ........ .
Reserve witb Federal Reserve Bank ....... .
BiUs payable and redisoounts witb Federal
Reserve Bank ....................... . . .
19S4
$149,436
51,466
59,598
126,631
186,129
269,939
121,213
75,294
1933
$ 92,682
64,636
65,858
148,277
214,135
211,866
123,693
27,480
1984
$162,288
60,202
61,898
124,397
186,796
273,824
120,461
76,749
None
1,588
Noao
1 . flu-
Reflecting the effect of season a . In the
ences, deposits of member banks . In deEleventh Federal Reserve Distnct 'Iy
clined materially in April and t~e d~2,
average amounted to $715,945,000. This figure, whIle $ the
176,000 smaller than that reported in March, exceeded de'
average of April, 1933, by $134,,994,000. Most of the decline from the previous month was registered in net n
ee
mand deposits, it being about equally divided betw
reserve city and country banks.
Deposits of
Member Banks
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands oC doUars)
----------------------------------------~---Combined Total
Reserve City Banko
Country B~
Net demand Time Net demand Time Net de,,;,and d~:rtB
deposits deposits deposits deposits depOSits
e
8
April,
May,
June,
July,
Aug.,
Sept.,
Oct.,
Nov.,
Dee.,
Jan.,
Feb.,
Mar.,
April,
1983 ..... . $394,790
1933...... 394,836
1933...... 395,983
1933.... . . 396,783
1933 .. ... . 389,177
1033...... 400,597
1933...... 436,027
1933...... 466,198
1933...... 494,176
1934 . ..... 605,909
1934...... 532,717
1934...... 635,355
1934...... 623,397
Sl86,161
186,696
186,405
191,055
190,931
187,508
186,036
187,947
186,687
192,214
195,746
192,766
192,548
Sl93,431
191,847
192,396
196,040
191,302
195,145
210,987
228,265
240,971
249,091
261,770
263,291
257,838
$113,723
113,101
113,390
113,908
112,666
110,146
109,264
106,914
106,132
108,317
110,348
108,385
107,615
$201,359
202,489
203,587
200,74~
197,87
265,45 2
226,04 0
237,98~
258,20
256,81~
270,94
4
272,0~9
265,6
$~~':~6
73'016
77'147
78'266
77'362
77"672
81'633
80'566
8S'891
86'398
84'381
84'933
'
--------------------------~~~~~~~~~~~~~~-------------------------;
MONTHLY BUSINESS RE:vIEW
6
-------------------------------------------------------------------------------All cities continued to show substantial increases over a
year ago, the average gain being 29.0 per cent.
Debits to
Individual
I1ccounts
There was a seasonal decline of 5.3 per
cent in the April volume of debits to individual accounts at banks in seventeen
leading centers in the Eleventh District.
The total amounted to $524~ 717,000, as against $554,058,000 in the previous month, and $406,847,000 in April, 1933.
Acceptance
Market
+tU
Reports from accepting banks in this district reflected a considerable decrease
during April in the volume of acceptances which were executed in this district and outstanding
at the close of the month. The total amount reported declined from $1,099,562 on March 31 to $275,675 on the
last day of the subsequent month, and the latter figure compares with a total of $1,076,156 on April 30, 1933. The
greater part of the reduction from both comparative dates
occurred in the acceptances executed against the domestic
shipment and storage of goods.
_
Savings
Deposits
1-
B~~t~~~·.: :::::::
onumont
Condo
.......
D·n neana...... .
EI"p .... ......
F
neo.. .. .. .. •
GO,t Worth......
veston.......
P o~ston.........
nor Arthur.....
SaOllnwAell .. :......
Sh ntomo.....
T rovoPort......
T~~~kana- .....
it
W
n..........
W~ohol' "'''' '' ''
10 In Falla....
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
Poroentage
April
April
ohango over
Maroh
1084
1033
yoar
1034
$
2a~~
14,304
2,380
154,178
15,227
51,630
17,182
127,015
4,800
2,069
47,022
28,732
5,122
7,408
0,875
10,288
$
l~:~~g
+~U
11,260
+26.9
1,878
+26.7
110,680
+30.3
12,887
+ 18. 2
43,312
++tn
14,760
.
8
100,861
++226 '5
3 , 0 5 21
.
1,806
+14.5
37,026
+24.0
20,069
+37.0
4,185
+22.4
6,383
+17.0
7,877
+25.4
6,021
+48.6
Peroentage
ohango over
month
s 1~::~~
16,122
2,748
162 556
,
g~:m
10,065
184,084
5,017
2,204
48,480
258,052045::
,
lI:m
10,316
-11.3
-18.4
52
=14:0
9.1
_ 9.0
_ 5.2
_ 4.3
_ 6.2
_ 3.0
7
7'0
-.
=lU
_ .3
A further small though rather general
increase in savings deposits was reflected
during April at 129 banks in this district, and on the last day of the month there was a larger
gain over the corresponding date last year than was shown
on March 31. Total savings deposits reported by these banks
amounted to $137,566,230 on April 30, ~s compared with
$137,137,305 a month earlier, and $133,484,,212 a year ago.
There were 310,636 savings depositors on record April 30 at
117 of the reporting banks, as against 309,14,7 at the close
of March, and 303,754 on the last day of April, 1933.
Total..... $524,717
$406,847
+20.0
$554 ,058" - 5:3
~InoludOB figures of two banks In Texarkana, ArkansaB, loentad In the EIghth
DIatTlot.
--Rovisod
~~~========================~----------------------------~
SAVINGS DEPOSITS
~----------------~~~----~~~-----Maroh 31, 1034
April 30, 1938
April 30, 1034
B
Donumont .. .......... ... ..
" IPna··· ·· .. .. · .. · ...... ·
.. aline
Fort v7~rth". .. .. .. . ....... .. .
Galvont
.. .. .. .. .. .. .
llousto~n.................
Number of
reporting
banks
3
00
2
4
Port Arth · .... · .......... ·
..
San A t \!r...... ..... ....
Sh n onlo...............
40
11
2
73
Wichii,;·F .. ·· ............ ·
o\ll othars alls..............
3
30
78
W~~~oport................
. .... .. ... ...... .
-120
Number of
savings
depositors
8,300
74,384
10655
32,' 046
g~',~~~
4,068
17,655
21,517
0511
1,
5~'~~~
I
030
31 ,6
Amollnt of
savin,lls
depOSIts
$ 3,194
'm
N be f
urn. r 0
dsavl~r
Amount of
savinI!"
depOSIts
S 3,022,743
e~~~~
73:203
10,427
0
3136',51765
52,080
4,317
16,358
21,810
10,312
5,551
50,071
24,06 4,
4,420,167
100',063654',660242
27,865,011
1,860,176
14,670,601
10,197,614
5,834,577
2,707,178
22,043,558
Number of
savings
depositors
Porcontage ohango
over year in
savings deposits
+ 5.7
-.1
+31 9
7'5
.
= 5: ~
24,070,085
3358310
"
2
10,886,30
0,712,405
20,310,811
1,000,478
13,710,064
8,051,604
5,550,652
2,314,209
20,650,870
8,231
74,150
10,502
32,880
16,620
64,880
4,020
17,868
21,560
10,451
5,631
51,006
- 2.1
+\~:g
++2t~
+11.1
--300,147
_
$137566230
303,754
$138,484,212
+ 8.1
Total. ...... ......
, '." All th rs" reportad tho number of savings depositors.
·Only 8 banko in Dallas, 0 in Houston, 6 in San Antonio, and 70 ,n
0 0
Amount of
aavin~s
deposIts
Percentage ohange
over month in
savings doposits
$ 3,132,004
23,820,266
4,337,276
10,054,540
10,377,040
27,560,507
1,874,306
14,442,832
10,552,880
5,704,642
2,768,681
22,421,832
$137,137,305
+2 .0
+1.0
+2.1
+ .1
-7.2
+1.1
- .3
+1.6
-3.4
+ .7
+1.0
2.3
-+ .8
~
Prevailing rat08:
MAY DISCOUNT RATES
Houston
San Antonio
Fort Worth
------------------~~~~~~~~~~~
Waoo
Dallas
EI PaBO
~~----~~~~-I-=~I-~-I~~I-~-I~~I-~
5-7
5-8
Rato O~arged oustomors on primo oommeroial paper suoh as that noW eligible for .
8-7
6-8
8-8
3-6
4-6
5-6
5}j1
Ita
Federal Reservo Aot .......... : . .. .. .. . .. . . . .
5-6
6
1
_, I
narredlSoountonund~r tho other banks scoured by bills reoOlvable ..... .. i' ....i ('..~t'..... 47r6
oharged loans to
ii
o. on loans scoured by primo stook oxohange or othor ourront 00 a ,er~ n
Including loans placod 10 other markots through oorrespondont banks).
~:and ....•........ . ...... . ........•...... ::::::::::::::: :::: :::::
~~ ohargedo~~ co';;";'~diiy 'paper ~';';~':ed by ;,;..roho~Bo·,:ccoipts, etc .. .... •· ...... .
~cnttle loans ..................................... · .. .. · .. • .. · .. · .. · .. ·
6-6
6-8
47r7
6
6-8
6-8
8
6-8
5-10
5-10
6-8 1
6-10
6-7 1
~:~ I
7-10
s-!8 .
6-8 1
6-8
8-10
6-8
6-8
6-6
8
INDUSTRY
~Ottonseed
With the movement of the 193~ cotrOducts
ton crop practically completed, contmued
declines of a seasonal nature were r~Tected in the operations of cottonseed oil mills located. I~
/lC.as, and with the exception of the output of linters actlVl-Des in April remained on a level below those a year ago.
esPite these consistent declines however, operations were
on a sea I e approxImately the same as t he aver age for that
.
'
tn
Onth. Activities during the nine months of the current
~eason Were below those in the corresponding period of the
receding season.
o
The usual slowing down in operations of cottonseed oil
establishments was also evidenced at mills located throughout the United States during the past month, and activities
were below those in the like month of 1933. Excepting linters
operations at these mills ~uring the current seas~n remained
below those in the first mne months of the prevIOUS season.
Stocks of cottonseed oil and cake and meal at Texas mills
on April 30 were larg~r than ~ year ago, while at all ~nited
States mills the supplIes of 011 were .smaller. InventOrIes of
hulls and linters at the close of AprIl were below those on
April 30, 1933, at both Texas and American mills.
~--------------------------------~~~====~~~~~~------------------------------------------------
MONTHLY BUSINESS REVIEW
6
-------------------------------------------------------------------------------------------------------STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States
I\.ugust 1 to Aprll 30
August 1 to April 30
This season Last season This season Last season
Cottonseed received at mlIIs
(tons) ........... ... .. . ....
1,202,842
1,406,260
4,007,438
4,B67,171
Cottonseed crushed (tons) . . ...
1,270,718
1,363,100
3,853,982
4,072,639
Cottonseed on hand April 80
(tons) ......... . ...........
111,010
218,419
373,877
693,526
Crude oll produced (pounds) ... 378,273,407 413,868,0161,202,732,380 l,2M,48B, 708
Cake and meal ~roduced (tons)
506,214
627,814
1,750,400
1,840,004
Hulls produced tons) .. . .... ..
350,423
404,015
1,026,164
l,15B,144
Linters produced (running
hales) .....................
220,824
161,329
735,442
644,267
Stocks on band Arll 30:
Crude oll (pounds ........... 33,222,809 27,138,420 82,317,454 86,370,065
Cake and meal (tons) .......••
62,795
50,056
252,014
219,065
Hulls (tons) .......... ...... .
32,511
36,345
69,805
05,208
Linters (running bales) . .....•.
36,721
77,168
141,680
252,030
Textile
Milling
Activities in the cotton textile industry
of the United States reflected a normal
slowing-down during April as compared
with the preceding month, but they continued on an appreciably higher scale than in the same month of 1933.
There were 512,703 bales of cotton consumed in April this
year, as compared with 54,3,690 bales in March, and 470,359
bales in April, 1933. The percentage increase in cotton consumption during the current season over the corresponding
period last season showed a further gain during April,
advancing from 5.2 per cent at the close of March to 5.7
per cent at the close of April. Stocks of raw cotton held on
April 30 by consuming establishments were seasonally less
than those a month earlier, and below the holdings on April
30 last year.
Although the actual production of cloth at reporting cot·
ton textile mills in Texas showed a large decline during
April as compared with the previous month, the consumption of raw cotton evidenced a slight increase. Consumption
was also in larger volume than in April, 1933, while production of cloth reflected a small decline. Orders for finished
products held by these mills on April 30 were in smaller
volume than at the close of either the previous month or the
same month last year. Supplies of finished goods on hand
April 30 were greater than a month earlier, but remained
below those a year ago.
Aprll
1034
United States:
Cotton consumed...........
On band Aprll 30 InConsuming establishments.
Public storage and comprDBBes ......... ... . . ..
April
10B3
406,678
388,805
August 1 to April 30
This season Last season
3,551,759
3,522,822
1,283,115
470,359
7,661,265
4,458,077
4,218,032
1,584,746
1,371,218
7,101,941
8,151,013
The exports of cotton through the ports
of Houston and Galveston reflected a
large decline during April, which was
only partly seasonal, and they were also considerably below
those in April, 1933. Despite this reduction as compared
with April last year, shipments during the current season
as a whole continued in much larger volume than in the
first nine months of the previous season. Receipts of cotton
at the port of Galveston during April were only fractionally less than in March, and exceeded those in April, 1933,
Cotton
Movements
-
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
Receipts ....... . ...... . ..... .
Exports . ................... .
Stocks, April 30 .......... .. . .
April
1034
114,656
02,221
I\.prll
19S3
71,732
109,254
August 1 to April 30
Tbis season Last senson
2,085,543
1,00~'~n
1,861,004
1,66 '2'0
658,636
607, •
---
COTTON-GALVESTON STOCK STATEMENT
(Bales)
For other foreign ports ............•...................
For coastwise ports .. ... ... ... .... : .................. .
In eomprDBBes and depots ............................. .
April 30,
1034
1,300
8,100
30,400
4,000
610,836
Total. . . ...... ..... .... ...•...•.....• ...
658,036
For Great Britain ................................... .
For Franco . ........................................ .
April 30,
1033
3,50 0
3,000
30,500
3,000
657,240
-
697,249
;::::;
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
----------------------------------------~~---August 1 to April 30
April
1034
32,070
108,315
April
1033
85,202
151,978
This season Last senso n
2,172,355
2,60~N~:
2,211,011
2, '38
1,070,214
1,651,0
--
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORTS-(Bnles)
_
1,011,141
6,755,820
512,703
Total foreign exports of cotton from the United States
also reflected an abnormally large decline during the past
month, which may be attributable in part to other than seasonal factors. Shipments were also substantially below t~ose
in April last year. There were 386,594 bales of Arnerlcan
cotton exported during the month, as against 550,104 balei
in March, and 4,36,4.50 bales in April, 1933. At the closde 0
April there had been 6,484,,605 bales of lint shippe to
foreign countries during the current season, which co~'
pares with 6,521,184 bales in the first nine months of t e
1932-33 season.
Reoeipts ................ . ... .
Exports .................. .. .
Stooks, April 30 .....•.....• . .
COTTON CONSUMED AND ON HAND
(Bales)
Cotton-growing states:
Cotton consumed . ... .... ...
On band April 30 InConsuming nstabllshments.
Public storage and comprDBBes ...... ........ ..
by a wide margin. On the other hand, receipts at Houston
were much smaller than in either the previous month or
the same month last year. Stocks of raw cotton held at both
ports on April 30 were in smaller volume than a year ago;
but at Galveston they were greater than at the close 0
March.
Receipts ... : ................. .... .......... ...........
Exports: Umted Kingdom...................... . .....
France.....................................
Italy.... .. .. .. .. . . .. .. .. .. .. .. .. . .. . .. . .. ..
Germany...................................
Other Europe...............................
Japan......................................
All otbor oountries...........................
Total fereign3)o,ts ................ :... .. . ....... .....
Stooks nt nil Umted States ports, April 30. . . . . . . . . . . . . ..
August 1 to April 30
oD
Tbis season Last sens
7,104,745
r,m-~~~
1,125,062
'718'254
682,849
628'330
570,378
1 429' 041
1,102,662
'708'403
871,377
1371'467
1,564,344
'458'49 6
477,033
6521'18 4
6,484,605
4108:438
3,009,734
,
~==================~~~
SPOT COTTON PRICES-(Mlddling Basis)
(Conts per pound)
_
-----------------------------A-p-ril-,1-0-34-------.M:-Dy 15,
NewYork ........ . .... .. .... .. .. .... ... .
New Orleans ............................ .
Dnllas ... . ... .. . ....................... .
Houston ................................ .
Galveston .............................. .
High
12.30
12 .27
11.00
12.25
12.20
Low
10.00
10.07
10.60
11.00
11.00
1034
11.45
11. 38
11.00
11.45
11 .45
~---------------~~~~mm~~~~---------------
MONTHLY BUSINESS REVIEW
f7
~---------------------------~------------~~
Petroleum
.
While the crude oil produced in the
Eleventh District during April, aggre~a~Ing 31,767,000 barrels, was in approximately the same
3~ Ull1e as in the previous month, there was an increase of
f ,900 barrels in daily average output which was accounted
by the shorter month. Production totaled 31,775,000
arrels in March, and 26,800,500 barrels in April a year
~o. Evidencing a material expansion in drilling activity,
t e total number of wells completed rose from 716 in March
.0 989 in April, and the initial output of successful wells
~n~reased from 1,994,835 barrels in the earlier month to
, 34,,84.2 barrels in the succeeding month.
ITh.e daily petroleum yield in Texas averaged 987,700 barre S In April, as against 955,500 barrels in the preceding
11:nth, and 827,200 barrels in the same month last year.
S e gain as compared with March was general over the
2~ate, and ranged from 1,050 barrels in North Texas to
,,050 barrels in East Texas. Daily production in the west~n and southern parts of the State was on a smaller scale
th an a year ago. Reflecting an increase of 2,700 barrels over
previous monLh, the daily output from fields in New
eXICO during April amounted to 44,,950 barrels, while that
of North Louisiana was reduced further and amounted to
26,250 barrels.
APRIL DRILLING RESULTS
t
Com·
pletlons
249
84
358
155
103
Pro-
North Texna ...............
Centrol West Texna .........
East Tel118 . . .. . ..... . . . ...
South Texna . ..... . .. . .....
Texas COll8tal.. .. ..........
duoers
151
48
333
78
76
Gna
wells
3
2
2
11
Total Texna ... •...
New Mexico . . . . . . ........•
North Louisiana .. ... .......
044
9
86
080
8
20
22
tr,ril totals! district ... .. ... .
arch tota s, district . . ... ..
089
716
714
515
Falluros
95
34
18
00
28
Initial
produotlon
88,072
130,341
2,448,030
31,480
56,048
2
280
1
14
2,708,527
24,530
1,785
24
23
251
178
2,734,842
1,994,835
4
CRUDE OIL PRICES
Tcxna Coastal (34 gr. and above) . . . ..... . .. . .. . . . . . . . . .
North TOl 118 (40 ~r. and above) .. . ......... .. .... ..
North Louisiana (40 gr. and above) . .. . . .. . ......... ::::
'Flat price.
'A/
May 11,
1984
51.12
1.03
1.08
May 12,
1933
I .30'
.25'
.25'
(011 statistics oomplled by ''Tho Oll Weekly," Houston, Texna)
OIL PRODUCTION-(Barrels)
~~:b rexas . .. .. . .... . ... . . .
EaSt r~o;Vost Texll8 .. . .. ..... .
South Te': ' ... ....... . . •....
Texas COll8ln!.'.: : :::: ::::: : : :
April, 1934
Total
Daily Avg.
3,352,500
1ll,750
4,947,000
104,900
14,998,500
499,950
1,402,500
48,750
4.870,500
102,350
~ow M 'fotal TexlI8 . . . . . . .. . 29,631,000
~ortb ~l~.. . . . . . . . . . . . . . . . . 1,348,500
787,500
987,700
44,950
20,250
Total Distriot. .. . . ... 31,707,000
1,058,000
u IOna......... . . . ..
Building
The valuation of construction permits issued at leading cities in this district reflected a further increase in April and amounted to $1 006 538, as compared with $988,507 in the preceding month, and
$1,070,678 m the same month last year. Despite the 6.0 per
cent decrease from a year ago, seven cities reported sizable
gains over both comparative months. The total number of
building permits issued rose from 1,4,37 in March to I 560
in April, these figures being materially in excess of those
at this time last year.
Inorcll8e or dcorC!l8o over
Maroh,1934
Daily Avg.
Total
+ 1,050
- 79,200
+ 2,300
- 93,000
+24,050
+245,000
+ 2,700
+ 34,950
+ 2,100
- 97,250
+ 10,500
+ 38,750
- 57,250
+32,200
+ 2,700
- 1,000
-
+38,900
8,000
BIDLDING PERMITS
April, 1083
April,1084
No.
Valuation
Aus
lb . . . .... , .
BenUlDont ... " .
Corp
us Christl. .
Dnill
El l'as .... .... .
l10r t
Only orth ... . .
Il:ous%t~n ......
Port A· .. · ....
W ......
..
Ban A;~~r
....
DI0
Sbre~eport .•.. , .
.•.
Wac
Wlch Itn'PnUs: ::
Total ....
81
105
10
409
42
70
131
199
42
180
228
28
55
67,116
15,233
25,700
202,780
18,550
03,800
55,252
202,845
18,819
48,122
90,932
80,387
9,109
- -S
17
No.
A;;- ....... - - - S - - {ilio
52,707
24
Percentage ohange
valuation over
year
Valuation
106
64
25
317
43
93
80
175
48
168
100
37
51
4,065
123,025
8,407
35,440
145,410
9,297
888,000
29,330
182,078
0,920
77,610
22,433
30,807
6,847
- - - - - - - --1,500 $1,000,688 1,323 $1,070,078
+963.4
- 45.4
+ 81.2
- 27.2
+ 39.5
+ 09.5
- 88 .0
+ 88.3
+ 43 .9
+ 90 .7
- 38 .0
+305 .8
+105 .2
+ 38 .0
-
0.0
March,1034
No.
Percentage ehange
valuation over
month
Valuation
17 5 8,378
85,406
90
17,600
94
13,215
21
288,751
384
11,525
40
78,600
97
86,024
147
301,760
193
11,400
37
66,281
168
58,809
124
15,067
22
4,995
13
+530.2
- 21.4
- 13 .0
+ 05.2
- 28.5
+ 01.0
- 18 .8
+ 50.9
- 12.9
+ 21.2
- 27 .4
+ 09 .0
+488 .5
+ 82.4
-- - -- --1,487 5 988,507
Cement
Activities at Portland cement mills in
Co
Texas during the past month reflected
1I1 ntrary to seasonal declines as compared with the previous
agonth, and they were also in smaller volume than a year
as o. April production of cement totaled 354,000 barrels,
b compared with 433 000 barrels in March, and 372,000
r~:rels .in April, 1933.' Shipments aggregated 316,000 barCe ' beIng 8.7 per cent below those in March, and 8.9 per
hel~ lower than the April, 1933 volume. Supplies of cement
1I1 by Texas mills on April 30 were greater than those a
oll:nth earlier, but less than on the same date of the pr~viyear. During the first four months of 1934 productIOn
+
1.8
Jan. 1 through April 30
Peroentage change
1938
1084
valuation over
period
Valuation
No.
Valuation
No.
58 5
72 5 120,112
31,376
+811.5
212,610
322
631,494
276
- 66 .3
53,808
283
44,242
824
+ 21.6
119,204
84
78
61,693
+ 03 .8
812,460 1,045
1,402
692,514
+ 17.3
92,110
120
149
77.982
+ 18.1
239,820
324
795,523
319
- 69.9
149,020
829
130,114
453
+ 9.5
977,525
055
708,395
693
+ 38.0
48,028
189
22,880
159
+109.9
252,840
527
374,901
510
- 32 .6
205,275
351
88,384
530
+132.4
130,508
107
104,952
78
24 .4
29,589
114
17,870
83
65.5
:j:
5,228
4,458
53,451,981
5 3,788,270
--8.9
of cement at these mills was 5.3 per cent greater than in
the same period of 1933, while shipments showed a slight
decline.
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
(In thousanda of barrels)
April
1984
Produotion at Toxnsmiils..... 354
Shipments from TOXBS milis.... 310
Stocks at end of month at Tel118
mills..... .. ........ .. ..... 017
Porcentage
January 1
ohange from
through
Percentage
April Maroh April ao, ohange over
1938
1934
1934
year
1,202
- 4.8 -18 .2
+ 5.8
1,199
- 8.9 - 8.7
.9
-
7.4 + 6.0
--------------------------------------------------------------------------------------------------MONTHLY BUSINESS REVIEW
---------------------------------------------------------------------------------------------------
8
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by tbe Federal Reserve Board, May 22, 1984)
Volume of manufacturing production increased during
April, while the output of mines declined. Employment and
payrolls continued to increase. The general level of commodity prices remained substantially unchanged during
April and the first three weeks in May, although prices of
individual commodities showed considerable changes.
PRODUCTION AND EMPLOYMENT
Production of manufactures which had increased continuously since last November showed a further advance in
April, according to the Board's seasonally adjusted index,
while output of mines was smaller in April than in March.
The Board's combined index of industrial production remained practically unchanged at 85 per cent of the 19231925 average. The growth in manufacturing reflected increases in iron and steel, automobiles, and meat packing.
Lumber production declined in April, and activity at wool
and silk mills was considerably reduced, while cotton consumption by mills showed little change. Crude petroleum
output continued to increase, but there was a more than
seasonal decline at the beginning of April in the mining
of both anthracite and bituminous coal. During the first two
weeks of May steel operations increased further, but declined somewhat in the third week. Output of automobiles
decreased considerably in May. Volume of employment and
wage payments continued to increase in April and employment in factories, according to the new index of the Bureau
of Labor Statistics, was larger than at any time since the
end of 1930. There was a substantial seasonal increase in
the number of workers employed in private construction as
well as in those engaged in projects financed by the Public
Works Administration. Employment on railroads, in metal
mining, and quarrying, and in various service activities also
increased further, while in coal mining there was a considerable decrease. Construction contracts awarded during
April, as reported by the F. W. Dodge Corporation, were
smaller in value than during March. There was a substantial
decline in public works contracts, while contracts ' for
privately financed projects showed a slight increase in April.
Following the extended drouth in important grain areas, the
Department of Agriculture forecast of the winter wheat crop
was reduced from 492,000,000 bushels on April 1 to 461,000,000 bushels on May 1. This compares with a five-year
average for 1927-1931 of 632,000,000 bushels. The condition
of rice, hay, and pastures has also been adversely affected
by the drouth.
DISTRIBUTION
Railroad freight-car loadings declined in April as com'
pared with March, and in the first half of May there was ..
smaller than seasonal increase in total loadings. The ApI,l
decline was largely the result of a substantial decr se,
coal shipments from the relatively large volume of alct
Department store sales showed little change from March ~
April, after allowance is made for differences in the numb e
of business days, for usual seasonal changes, and for changes
in the date of Easter. Sales continued larger than a year ago.
i
Mr
COMMODITY PRICES
The general level of wholesale commodity prices, as
measured by the Bureau of Labor Statistics index, has sh~wn
little change during the past three months. Prices of gral~i'
cotton, silk, and silver, which declined sharply in A~rI ~
rose during the first three weeks of May. Rubber prIde.
advanced sharply until early in May, but subsequently, e
d
clined somewhat and prices of textile products dMh~h
during recent weeks. Steel scrap has declined since ~lCU;
while finished steel products, automobiles, non-fel ro £
metals, and building materials advanced. Cattle and t~ie
prices rose during April and the early part of May W 1
prices of hogs declined.
BANI{ CREDIT
Excess reserves of member banks remained at a lev l th!
about $1,600,000,000 between the middle of April an 'n
middle of May. There were no considerable changes t~I
monetary gold stock or in money in circulation. The to At
volume of reserve bank credit also showed little change, ks
reporting member banks in leading cities in the five ~e3oo
ending May 16 there were decreases of about $24.0,00 , ct.
in loans and of $80,000,000 in investments, the latter refJe of
ing a decrease in holdings of securities other than those 'ts
the United States Government. Net demand and time depoSlv
increased by nearly $200,000,000 while United States S~o r~
ernment deposits were reduced by about $300,000,000, 1 ~Is
term money rates in the open market continued at low beY ds
during May and yields on United States Treasury orad.
declined further to the lowest levels of the post war per
d
@FedFRASER