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MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS C. C. WALSH Chairman and Faderal Reserve Agent CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents (Compiled May 15, 1935) !olume 20, No.4 Dallas, Texas, June 1, 1935 This copy is released for publicatlon in morning papers-- May 31 LOANS TO TRADE AND INDUSTRY In June, 1934, the Federal Reserve Act was amended so as to permit Federal reserve banks to make a substantial volume of credit available to established industrial or commercial businesses in need of additional working ~apital which cannot be obtained from the usual sources. he loans are to be made on a sound and reasonable basis and may have maturities not exceeding five years. A member bank may make a loan for working capital purposes and by paying a reasonable commitment charge may procure from the Federal reserve bank an agreetne~t to take over the loan at any time within a specified ~enod without recourse on the member bank for that porhon of the loan not guaranteed by it, which may be as tnuch as 80 per cent. The law also permits Federal reserve banks, apart from the commitment feature, to make loans for working capital purposes in participation with member banks and other financing institutions. Besides authorizing Federal reserve banks to make commifments to take over industrial loans and adva.nces and to participate in loans with banks and financing institutions, the law also authorizes Federal reserve banks in exceptional circumstances to make direct loans to industry. The Federal Reserve Bank of Dallas has made direct loans, participating loans and commitments in the aggregate amount of $2,127,550, and a number of other loans and commitments are in process of being closed. Additional information may be obtained by any bank, financing institution or prospective applicant for credit by addressing an inquiry to the Federal Reserve Bank of Dallas. DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Federal Reserve Diatriet April Chango from Mareh IOB5 Baoi~es~ebits to Individual accounts (at 18 Depart ."i' ..... " .... .................. . Reser mgn katero aales" . . ................. . of ~~nt~n laona to member banks at end Reserv b ·k···: .. · .. ··· ·· .. · .... ······ .. · BUild' 0 an ratIo at ond of month ...... .. . . Com~ng I"'[r\t valuation at larger eentera .. . . Comm~~~::1 f::I~res ~,~uD?~.r) ....... . ...... . . Oil prod' res ~hablhtles) ............. . _ uotlon (harro a) . ........ ... ... ..... . $610,067,000 + 502,226 50 .4% $ 3,024,570 32 $ 403,287 33,042,000 +$287,294 + .5 points 2.4% 2.3% +104.1~ + 68. 4 +210.8 - 3 .8 0 tn I;Ieavy and widespread rains which supplied needed u Olstur~ in practically all sections of this district, a sharp :turn In bUilding operations, and an active demand for i erc:andise in wholesale and retail channels were outstandsn g evelopments during the past month. A good subsoil f eason now obtains in all sections except portions of the nO~tner drouth area, where additional rain would be beneticlal, and farmers can proceed rapidly with planting operaons and crop cultivation as soon as the topsoil dries suf- ficiently. Vegetation on livestock ranges has made rapid growth as a result of the improved moisture situation, and the prospects for early summer pasturage are good. With better grazing conditions livestock should mend rapidly. There is a stronger demand for stocker animals and range prices are rising. Construction activity reflected a sharp upturn in April. The valuation of building permits issued at leading cities in this district rose to the highest level since the large January figure, and gains were registered by most of the reporting cities. The April total was more than twice that for March, and three times larger than in the same month of 1934. Retail distribution, as reflected by department store sales, was 2 per cent larger than in March and exceeded that of a year ago by II per cent. The improvement, however, was due largely to the lateness of Easter this year. In wholesale trade, the combined sales of reporting firms evidenced a slight seasonal decline as compared with the previous month, but they were substantially larger than a year ago. Debits to individual accounts at banks in principal cities, while slightly smaller than in March, showed a gain of 16 per This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 cent over a year ago, which was the most favorable comparison reported since last August. Federal Reserve Bank loans to member banks reflected a further expansion and at the middle of May were larger than a year ago. The investments of member banks in selected cities were increased between April 10 and May 8, but the commercial loans of these banks showed a small seasonal recession. The daily average of combined net de· mand and time deposits of member banks rose $1,131,000 between March and April, and the total in the latter month was $84,252,000 greater than in the same month of 1934,. Effective May 8, 1935, the discount rate of the Federal Reserve Bank of Dallas was reduced to 2 per cent. BUSINESS An improvement in business was visible during April in several reporting lines of wholesale trade. The sales of wholesale grocery firms in this district reflected an expansion which was contrary to seasonal, and the demand for drugs and dry goods fell off by a somewhat smaller percentage than is often reported at this time of year. Business in four lines reached a larger volume than in the same month last year. In the case of groceries, dry goods, and <h'ugs, this comparison was more favorable than that reported for March. Inventories were increased somewhat during April in all lines except <h'y goods. Varying trends were evidenced in the volume of collections during the month. Declines from the previous month occurred in the case of groceries, farm implements, and drugs, while substantial gains were reflected in the other two lines. Wholesale Trade An increase which was contrary to seasonal and amounted to 4.2 per cent was reflected in the combined sales of reporting wholesale grocery firms in this district during April. As compared with the same month a year ago, business showed a gain of 30.4 per cent, this comparison being the most favorable reported since February, 1934. Stocks on hand April 30 were 3.7 per cent above those a month earlier, and 12.2 per cent larger than a year ago. Total collections during April were only slightly smaller than the previous month's volume. Distribution of dry goods through wholesale channels during April declined by less than the usual seasonal amount, being 4.9 per cent below that of March. There was an increase of 5.5 per cent over th':! corresponding month last year, whereas reports in each of the first three months of the current year evidenced substantial declines from 1934. Stocks on hand were further reduced during the month, and on April 30 were 13.5 per cent smaller than a year ago. An increase of 10.7 per cent was shown in the April volume of collections as compared with March. There was a seasonal decline of 5.1 per cent in the distribution of drugs at wholesale during April. Business was 7.3 per cent larger than in the same month last year, whereas a slight decrease was reflected for this comparison in March. Inventories on April 30 were somewhat higher than a month earlier, this being the fourth consecutive month in which an increase has been registered. A reduction of 4,.8 per cent as compared with the previous month was shown in the volume of collections during April. Sales of farm implements during April by wholesale firms in this district showed a decrease of 32.0 per cent from the preceding month, but continued to be in larger volume than in the same month last year. However, the margin of increase was the smallest that it has been in a number of months. Business sentiment in many sections of the district was improved by the widespread rains which have fallen in recent weeks. A material decline in collections during April was reported. After increasing for three consecutive months, the demand for hardware at wholesale declined slightly during April. Total sales for the month were 3.3 per cent less than in March, and they showed a reduction of 1.1 per cent as com· pared with the same month last year. For the period from January 1 to April 30, there was an increase over 1934 amounting to 0.2 per cent. Collections in April totaled 7.9 per cent more than those of the preceding month. CONDITION OF WHOLESALE TRADE DURING APRIL, 1935 Percentnge of inorellSe or deorellSe in- Groceries ......... Drygoods ........ Fnrmilnlliemcnta .. Hardware ........ Drugs ........... . Not Sales Not Sales April, 1935 Jan. 1 to dnte compared with compared with April, Mar., 8amo period 1934 1935 IlISt year +30.4 + 4.2 +20 .0 + 5.5 - 4.9 - 9.0 +17.5 -32 .0 +70 .2 - J.I - 3.3 + 0 .2 + 7.3 - 5.1 + 5.1 Stooks Ratio of oolleoApril, 1935 tions during April cOlr'1~ared with to nccounts nnd Aprtl, Mar., notes outatnnding 1934 1935 on March 31 +12.2 + 3 .7 81.2 - 13 .5 - 2.8 36.3 +15 .1 + 8.9 5 .9 - 0 .8 + 0.2 50.0 + 5.9 + 1.6 52 .3 Retail Trade Stimulated by a late Easter, the business of department stores located in leading \ cities of the Eleventh District continued very active during the past month. Sales were 2.3 per cent greater than the March volume, and exceeded those in April, 1934" by 11 per cent. The large increase over April, 1934. is due mainly to the fact that pre-Easter buying this year occurred in April, while last year it came in March. }. more accurate picture of Easter and spring buying is shown , in the comparison of department store business during March and April this year as compared with the same tWO months of 1934, which reflects an increase of 3.2 per cent in 1935 over last year. This bank's seasonally adjusted indeJ( of department store sales averaged 80.3 per cent for April, as against 85.5 per cent in March, and 80.5 per cent in April, 1934. Distribution of merchandise during the first four months of 1935 was 41.9 per cent greater than in the corresponding period last year. Stocks of merchandise held by reporting firms on April 30 were 3.5 per cent greater than the holdings a month earlier, and 5 per cent above those on hand April 30, 1934,· The ratio of stock turnover during 1935 was 1.00, as COlli' pared with .99 in the first four months of 1934. Collections on open accounts evidenced the usual se~' sonal increase during the past month. The ratio of AprIl collections on open accounts outstanding on April 1 wa; 39.6 per cent, as against 38.6 per cent in March, and 37. per cent in April, 1934. Collections on installment accoun.ts declined from 15.6 per cent in March to 15.0 per cent 1n April, which compares with 14.. 8 per cent a year ago. l MONTHLY BUSINESS REVIEW 3 BUSINESS OF DEPARTMENT STORES Total sales (percentage) : April, 1035, compared with Aprill 1084.. . ................ . • . ......... . . . •. . .... . ~pril , 1085, compared with Marcil, 1085 ............ .. . . .... . . .. . . .... ... . .. ... . anuary 1 to date comparcd with same period last ycar .. .... .. . ...... . . . . . .... .. . Credit sales (pereentnge): April, 1035, compared with April, 1084 ... . ........ . .... . . . .. . ........ .. ....... . ~pril , 1035, compared with March, 1035 .......... . .. . ......... .. . ... . . ...... . . . anuary 1 to date compared with same period last year ... . ... .. . . ...... . . ... . .. . . Stocks o? hand at ond of month (percentago): April, 1035, compared with April, 1034 .......... .. . . . . .. ... .. .. . ... .. . .. . . .. . .. . April, 1035, compared with March, 1035 ... .... .. ..... . .. ... ... ........ ........ . Stock turnover (rate) : ftnte of stock turnover in April, 1084 .. . . .... . .. ... . , .......... . ..... . . .... . . .. . lli:te of stook turnover in April, 1085 .......... . .... . ......... . . .. ...... . . . .. . . . 1 to of stook turnover January 1 to April 30, 1034 ..... . . . ... . .......... .. .. . ... . tate of stock turnover January 1 to April 30, 1035 .. . .... . .. . .............. . . . . . . Ratio of April collcotions to open accounts receivable outstanding April 1, 1085 .. ..... . . . Ratio of April oollections to install meat accounts rooeivablo outstanding April 1, 1085 .. .. . Indcxes of doportment store sales ' ~~fJ1~W~~~fg;~#:5: ~ ~': ~ ~: ~: ~ ~ ~:::: ~: ~: ::: ::: :: ~: ~ ~::: ~: ~ ~ ~ ~:: ~ ~::::: :: ~~ff1:~~~~i.i~;~jf:;:. ~ :': : : : : : : : :: : : : :: ::: :::::::: : : : Iadcxes of department store stooks' Commercial After having declined appreciably in the Failures previous month, the business mortality . rate in this district rose materially during Apnl. The liabilities of defaulting firms also showed a substantial increase as compared with March, but they totaled somewhat less than in the same month last year_ Figures Dallas + 13. 0 - 1.4 + 0.6 Fort Worth +10 .7 + 2.8 2.5 Houston + 8.4 + 11 .0 - 1.0 Snn Antonio a.8 .0 + 5.8 Others +15 .0 + 1.6 + 4.0 Total Distriot + 11.0 2. 3 4.9 + 15.5 .2 + 18 .0 + 2. 5 + 5.8 + .5 + 4.8 +13. 4 + 14. 1 + 10 .1 + 4.a + 4.6 - 2. 5 +10.1 + 8.2 + 18. 7 + 1.0 + 13. 7 + 1. 8 + 0.4 + 6.1 + 6.0 :1=20.3 2.7 + 3.6 + 1. 4 + a. 5 + 3.7 + 2.4 + + + + + + 5.0 .26 .20 1.12 1.17 41.0 10 .5 .19 .21 .79 . 80 34 .0 10.7 .25 .20 1.00 .03 42 .5 .33 .28 1. 22 1.10 41. 7 10 .3 80.8 84.1 89. 5 84.1 70.4 81. 7 8U 80.0 70 .3 88. 1 85.a 80.4 73 .7 60.3 77 .6 00.0 80.4 80.3 85. 5 80.3 55. 7 57 .0 55 .1 55 .8 66 .0 72. 0 6U 60. 2 48. 5 51.5 48 .5 50.0 48. 7 51.0 45 .0 48. 1 50 .2 01.0 57 .5 50.2 .10 .22 .82 .84 36 .7 20.8 .24 .20 .00 1.00 30 .0 15.0 released by Dun & Bradstreet, Incorporated, covering commercial failures in the Eleventh District, showed that there were 32 insolvencies in April with a combined indebtedness of $403,287, as against 19 defaults in the previous month with liabilities amounting to $129,760, and 31 commercial failures in April, 1934" owing $425,629. AGRICULTURE Crop ConAgricultural conditions in this district ditions have been greatly improved by the heavy . rains which have fallen in most sections Since the middle of April. While field work has been delayed on account of wet soil and considerable replanting will be necessary, the effects of the delay have been more than olTset by the good surface and subsoil season which now obtains in the major portion of the district. The condition of the Texas wheat crop has shown no im- ~ro~ement as rains were generally light in the heavy pro- UCIng sections and in most instances came too late to be of material benefit. The Department of Agriculture estihated that 70 per cent of the 4,373,000 acres sown last fall ~d been abandoned prior to May 1, and that the condition o the 1,312,000 acres remaining for harvest was only 39 bel' cent of normal, which indicated a per acre yield of 6 ushels and a total harvest of 7,872,000 bushels. The prospective per acre yield is the lowest on record and the percentage of abandonment is the largest. The crop in Okla~oma showed a further deterioration during April. The e~as oat crop, which was suffering from the lack of mOisture in March and up to the middle of April, has shown a marked improvement since the rains. The condition of the cro p Was rated at 61 per cent of normal on May 1 as compared with 74. per cent a year ago. The Louisiana crop Was rated at 72 per cent of normal as compared with 85 per cent last year. r The corn crop has made good progress in nearly all seclions. The crop had a good start and since the rains plants laVe grown rapidly. The condition of tame hay in Texas w?S rated a~ 62 per cent of normal on May 1 as compared With 68 per cent a year ago. The condition of the crop in O~\~r states attached to this district is fail' to good. Stocks o ay on farms are low for this season. The planting of cotton, which had made generally good progress during most of April, has been retarded during the past three weeks as the wet soil has interfered with field work. Due to the severe washing in some areas, to the chilly weather, and to poor germination and seed rotting, much replanting will be necessary. Over a considerable area fields are becoming grassy and weedy as wet soil has prevented cultivation. In some sections there are complaints of cutworms, lice, and other insects injuring young plants. A period of dry, warm weather is now needed over the cotton territory to enable farmers to complete planting operations, to clean fields, and to give young plants a good start. The outlook for the Texas peach crop is generally favorable with the May 1 condition rated at 61 per cent of normal as compared with 60 per cent last year. Prospects in Louisiana and Oklahoma, however, are not as good as a year ago . The Irish potato crop in Texas was estimated at 71 per cent on May 1, as against 73 per cent in 1934. The condition of the crop in Louisiana was placed at 83 per cent, whereas a year ago it was 78 per cent. The outlook for spring truck crops is favorable although cool weather has delayed the maturity of some crops. Heavy rains have damaged crops in some localities. Heavy rains over most of this district during the past month have greatly improved range prospects. While most areas have sufficient moisture to provide good grazing during early summer, rainfall has been lightest in the drouth areas of west and northwest Texas and eastern New Mexico, and much additional rainfall will be needed to offset the effects of the accumulated deficiencies in soil moisture. While the major portion of the Edwards Plateau region remained dry during March and April, heavy rains have fallen in most of the territory since the first of May and sheep and goat ranges Livestock MONTHLY BUSINESS REVIEW 4 should improve rapidly. Cattle are in fair to good condition in the eastern two-thirds of Texas, western New Mexico, and southeastern Arizona, but are poor to only fair in eastern New Mexico and west and northwest Texas. While sheep are in good condition in the eastern portion of the Edwards Plateau, they are in poor to only fair condition in the western portion. The Department of Agriculture rated the condition of cattle ranges in Texas at 66 per cent of normal on May 1 as compared with 61 per cent on April 1, and 82 per cent on May 1, 1934. Sheep and goat ranges were estimated at 59 per cent of normal condition, which is 5 points lower than a month earlier and 21 points below a year ago. During the month, the condition of cattle rose 5 points; that of sheep increased 1 point; and that of goats improved 3 points. In each instance, however, the condition figure on May 1 was substantially lower than on the same date last year. during the past month, but at most times there was an active demand for quality offerings at good prices. While hog prices were weak at times, the market strengthened toward the middle of May and was slightly higher than a month earlier. Sheep and lamb receipts increased in April and prices tended lower but the market strengthened somewhat in the first half of May. The receipts of cattle at the Fort Worth market during April reflected a noticeable increase over both the previous month and the same month last year. Supplies of sheep showed a large gain over both comparative periods, but the arrivals of hogs showed a large decline. While the receipts of calves were somewhat smaller than in March, they were substantially larger than in April last year. COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight) FORT WORTH LIVESTOCK RECEIPTS (Number) Cattle .. ........ . Calves . .. . . .... . IIogs .......... . Sheep .. . ....... . Movements and Prices The cattle market evidenced considerable irregularity April April 1935 42,805 19,209 29,219 73,433 1034 33,768 11,280 48,616 37,125 Beef steere .. .. .......... . ........... . ... . ~~~ker steore ... : ......... . . ............ . el era and yearlings .............. . ..... . ~~:::::: Changeover yenr + 0,037 + 7,020 - 10,307 +36,308 Maroh 1935 35,361 20,916 35,501 25,053 April April 1035 $11. 00 1034 56.00 .i2 :00 7.25 .. 8:50 8.75 5.00 8. 00 Change over month + 7,444 - 1,707 - 6,372 +47,480 Maroh 4 .50 1035 $11.25 7.25 12 .00 7.00 6.00 4 .30 5 .00 0.50 8.50 0 .60 5 .25 0 .00 050 FINANCE During the four-week period ending May 8, the reports of member banks in selected cities reflected a gain in investments, but a decline in loans and demand deposits. Holdings of United States securities totaled $170,129,000 on May 8, which was $1,880,000 greater than on April 10, and $20,693,000 above those on May 9, 1934,. Investments in other stocks and bonds were increased $1,083,000 during the four weeks and were $28,538,000 larger than a year earlier. Following the reduction in the New York call rate on security loans, these banks withdrew most of their New York security loans with the result that loans on securities declined $5,170,000 during the period. As compared with a year ago, these loans were $16,378,000 smaller. While "all other" loans (largely commercial) declined $861,000 between April 10 and May 8, the total on the latter date was $11,001,000 greater than a year earlier. The net demand deposits of these banks declined $3,781,000 during the four-week period, but time deposits rose $1,658,000. As compared with a year ago, combined net demand and time deposits were $4.7,228,000 greater. Reserve deposits with the Federal Reserve Bank totaled $62,566,000 on May 8, which was $7,869,000 less than four weeks earlier, and $12,728,000 below those a year ago . Operations of The demand for Federal Reserve Ban}, the Federal Refunds reflecteo a further seasonal increase serve Bank during the past month. Total bo'rrowings by member banks aggregated $511,000 on May 15, as compared with $359,000 on April 15 this year and May 15 last year. There were 23 borrowing hanks on May 15, as against 15 banks a month earlier and a year ago. Loans by the Federal Reserve Bank to established in· dustrial and commercial businesses for working capital purposes totaled $1,808,000 on May 15, and it had commitments to make advances in the amount of $160,000. Between April 15 and May 15, this bank reduced its holdings of bills bought in the open market $16,000 and its investments in United States securities $5,000,000. The reserve deposits of member banks showed considerable irregularity during the month, but the total on May 15 amounted to $110,146,000 as compared with $112,795,000 on April 15. These deposits totaled $118,089,000 on the same date in 1934. Federal reserve notes in actual circulation totaled $47,283,000 at the middle of May, which was practically the same as a month earlier, but $8,230,000 greater than a year ago. CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thousands of dollars) CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollara) Condition of Member Banks in Selected Cities May 8. MayO. 1035 United States seourities owned ............ . $170.120 All other stooke. bonds. and seourities owned. 80,004 Loans on scourities .................. .... . 43.220 All oth~r loans . . ........................ . 137,532 Total loans .............. .... .... . ...... . 180.752 Net demand depoeits . .. ............. .... . 314.760 Time deposits ........ . .......... . ... .... . 123.611 Reserve with Federal Reserve Balik .. ... .. . 62.566 1934 $149,436 51,466 59,598 126,581 186,129 269,930 121,213 75,204 None None Bills payable and redisoounts with Federal Reserve Bank ....................... .. April 10, 1935 $168.249 78,921 48.390 138,398 186,783 318.550 121.953 70.435 None May 15. 1035 Total eash reserves . ......... . ........... . $ 96.649 piBcounts for member banke ......... . .... . 611 B~ftus~ria\ adyances . . .................... . 1.808 UI s 0Sght In the open market ........... . 122 nited tates seouritles owned .. .. . .... . .•. 71,475 ~ther investments . ................ . ..... . None otal earnin~ aeeets . ............ . ....... . 73.016 Member ban reserve deposits . . .......... . 110,146 Federal reserve notes in aetual oiroulation .. . 47,283 Federal reserve bank notes in actual eireulation ................ . . .. .. .. .. ... ... . None May 15. 1034 $103.176 350 April 15. 72.144 118,080 39,053 1935 S 97,861 359 1.776 138 76.475 3 78,751 112,705 47.246 2.775 None None 310 71.475 None MONTHLY BUSINESS REVIEW Debits to Debits to depositors' accounts at banks in Individual leading cities in this district totaled Accounts $619,067,000 in April. While this is . smaller than the $634,081,000 reported In the previous month, the amount of decline was of less than seasonal proportions. There was an increase of 16.3 per cent as compared with the corresponding month last year, this being the most favorable such comparison reporte~ since last August. At seven reporting centers there \~e~e Increases as compared with March, and at seventeen CItIes there were gains over April a year ago. posits. While there was a decline in the net demand deposits of country banks, it was more than offset by an increase in those of reserve city banks. DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) Combined Total ~bilene......... Bustin . ......... Cea'!mont...... . D~ITleana . ...... EI pas.... ....... 1935 $ 6,264 35,269 10,007 2,630 1~~:~n go~t'W~rtb·.::::: 64 ,005 naveston....... 18,683 h~r~~r~h;;;::",:: 13~:~~~ 08well San ......... Sb Antonio..... T reveport . ... . . Texarkana·...... TuFon. " ....... "'a~~'"'''''''' Wiohii~·F~li~:::: 2,081 63,888 25,868 5,252 8,470 10,304 g:m April 1934 $ 4,766 21,829 14,304 2,380 Percentage obange over year 51,630 17,182 +31.7 +61.6 +32 .0 +10 .5 t3U +25 .7 + 8. 7 12l:UZ 2,060 47,022 28,732 5,122 7,408 7,707 t3U + .6 +35.0 - 10.0 + 2.5 +14 .3 +32 .7 In:m I~:m ttU Maroh 1935 S 5,576 33,451 18,543 2,676 April, May, June, July. Aug., Sept .• Oot .• Nov., Deo., Jan.. Fob., Mar., April. Peroentnge ohange ovor month +12 .3 + 5.4 + 2.5 - 1. 7 l~~:m =IU 62,845 20,725 +3.3 - 0 .0 2,214 61,880 31,127 4,700 10,775 10,361 :; - 6.0 + 3.2 - 16.0 +11 .7 -21.4 -.6 14~:m Country Banks 1034 .... . . $523,397 1934...... 510,090 1934.. . ... 519,465 1934... . .. 521,333 1934.... . . 527,054 1934..... . 567,318 1934...... 583,558 1034...... 596,441 1934... . .. 697.645 1935 . .... . 590.459 1935...... 600,125 1935.... . . 605,072 1935 . . . ... 006,348 S102,548 192,830 102,712 197,090 190.825 194,215 194.618 190.612 195.380 196,436 197,155 193,394 103.849 $257,838 $107,615 253,762 108,146 256,456 109,597 256.210 112,632 200,001 Ill,551 275.831 109,110 287,250 109,459 292,685 111.082 286,965 111,630 279,110 113.255 289,957 112,586 294,281 112,010 299.163 112,252 $265,550 262,3a8 263,009 260,123 200,993 281,487 296,308 303,756 310.680 311,349 319.168 311.391 807.185 $84,933 84,684 83.115 85.058 85,274 85,105 85.169 85,430 83,750 83,181 84,569 81.375 81,597 Acceptance Market g im~ Reserve City Banks Net demand Time Net demand Time Net demand Time deposits depoaits depoaits depoaits deposits depoaits DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) April 6 =1~:~ Total. .. .. .. $610,067 $532,484 + 16 .3 $034,081 - 2.4 · triot. ~Inoludes the figures of 2 banks in Texarkana. Arkansas. located In the Eighth D18 Deposits of Member Banks The daily average of combined net demand and time deposits of member banks reflected a counter-to-seasonal increase in 1pril~ the total of $800,197,000 being $1,131,000 greater t an In the previous month, and $84.,252,000 above that in t~e same month last year. The increase over March was a out equally divided between net demand and time de- The volume of acceptances executed by banks in the Eleventh District and outstanding at the close of April reflected a moderate seasonal decline from the preceding month, but was noticeably larger than on the same date last year. The total amount reported was $1,667,756, which compares with $1,843,270 on March 31, and $275,675 on April 30, 1934. The volume of acceptances based on the domestic shipment and storage of goods amounted to $1,509,893, as against $1,727,706 a month earlier, and $193,624 a year ago. Savings deposits totaling $14,9,584,517 were reported as of April 30 by 125 banks in this district that operate savings departments. This figure is 0.4 per cent larger than that of a month earlier, when these deposits aggregated $148,937,685. The total amount reported on the last day of April, 1934" was $136,811,4<02. The expansion over a year ago was participated in by all major cities, and only two reported declines as compared with March 31. Savings Deposits SAVINGS DEPOSITS April 30, 1935 Number of roc~~~ng Beaumont................. ~t~as.................... Fort 'W~rih'" ... .... ••.. . . . Galveston. :........ .. ..... n t .. .. ........ . .. P~r~s1r~it;;;.......... .. .. . San Antoni' ...... .. .•.. : .. Shrevo ort o . .............. W p ... W~"b-"'F""::::::::::::: AIIIO tibia ·nlls.... .... . ..... o ers........... .. .... 3 O· 2 3 4 11· 2 O· 3 3 3 70. Number of d:~~it~~s 8,876 77,075 12,100 34,596 16,864 65,801 5,210 17,403 22,267 10,879 6,072 51,559 ------ April 30, 1034 Amount of J:;~~ S 3.518,768 25,137,584 5,436,626 10,901,058 10,015,100 30,761,298 2,060,152 16,266,305 10,814,096 6,418,843 2,914,307 25,250,395 Number of d:~~i:rs 8,282 74,384 10,655 32,946 16.655 66,447 4,968 16,782 22,944 10,401 5,668 48,640 ------ March 31, 1035 Amount of Percentage chango J:;~r~ Number of saZi~~sYde~~ts '3.175,723 24,664,760 4,429,107 10,066,417 9,634.602 27,866,011 1,860,176 14,254,766 10,197,614 5,834,577 2,797,178 22,022,421 Bavings depositors +10 .8 + 1.0 +22 .7 + 9.2 + 3.0 +10.4 10 . 2 14 .1 + 6.0 +10 .0 + 4.2 +14.7 8,891 77,026 11,988 34,557 16,859 65,719 5,310 17,442 22,401 10,929 5,958 51,545 t Total. . ......... 125 328,708 $149,584,517 317.857 $l36,811,402 + 9.3 ·Only 8 banks in Dallns, 10 in Houston, 5 in San Antonio. and 68 in "All othors" reported the number of savings depoaitors. MAY DISCOUNT RATES Rate e~arged customers on prime commeroial paper such as that now eligible for Rat rediscount undor tbe Federal Reservo Aot . . ....... ... .. . ........... . ....... . Rat0 oharged on loans to other banks scoured by bills reoeivablo .................. . o. ani loons scoured by prime stook exohange or other ourrent oollatoral (not Ino uding loans placed in other markets through correspondent banks): Demand .............. . .... . .............. . ............... .. ... .. R:~ oharged ~~~~;,;modiiy 'papo; seou;ed by' ;':o'rohou'so'reeoitiiS, ·oto·.: : : :: :::: :::: : _0 on cattle loans . ..... . ............... . .... . ....... . ........ . ..... . .. . .. .. 328,634 Amount of savinj\s depoalts S 3,468.105 Pcreentngc ehango oyer month in savings dep08its 25,051.836 5.296,239 10.848,762 10,012,978 30,556,966 2,061,649 16,187,002 11,234,077 6,367,430 2,857,731 25.004,010 $148,987,685 + 1.6 + .3 + 2. 6 +1.4 0.0 + .7 .1 + .5 - 3.7 + .8 + 2.0 + 1.0 + .4 Prevailing rates: Dallas EI Paso Fort Worth Houston San Antonio Wnoo 4-6 6-8 5- 6 5-6 6 4- 7 6 6 3- 6 5-6 6-8 6-8 6-8 6-8 5- 8 5- 8 6-8 6-8 4- 7 4- 7 3- 7 7- 10 6-8 6- 7 8 6-10 6-8 6- 8 5- 0 8 Nono 5 6-8 3~6 None 5~ MONTHLY BUSINESS REVIEW 6 INDUSTRY Operations at cottonseed oil mills during the past month in both Texas and the United States remained on the low level that prevailed throughout the previous month, and con· tinued in substantially smaller volume than in the same month of 1934,. With the exception of the output of linters at all United States mills operations during the nine months of the current season remained materially below those in the same period last season. Stocks of cottonseed products on hand April 30 at crushing establishments were seasonally smaller than those a month earlier, and supplies of crude oil were approximately one·third of what they were on April 30, 1934,. Cottonseed Products STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texas United States August 1 to April 30 August 1 to April 30 This sonson Last sonson This season Last SonsOIl Cottonseed received at mills (tons} ............. , .. .. .. . 700,140 1,203,686 3,339,740 4,008,375 Cottonseed crushed (tons).. .. . 788,307 1,280,325 3,313,843 3,854,587 Cottonseed on hand April 80 (tons).. . .. . .. . . .. . .. . .. . . . 28,404 112,147 248,658 374,200 Crude oil preduced (pounds} ... 225,527,406 378,273,497 1,031,826,345 1,202,000,480 Cake and mcnl ~roduced (tons) 372,000 596,214 1,507,950 1,750,389 Hulls produced (tons).. . . . . .. . 208,253 350,423 852,075 1,026,162 Lintors produccd (runlling bales).. .. . .. . . . .. . . .. . . . .. 167,209 220,824 746,849 784,571 Stocks on hand April 30: Crude oil (pounds) .......... . 8,083,239 33,222,809 28,315,862 82,317,454 Cnke and mcnl (tons) .. ...... . 46,428 62,795 264,990 252,625 32,109 32,511 Hulls (tons) ...... .. ........ . 120,280 69,885 Linters (running balcs) . .. .... . 38,110 36,721 147,052 141,505 Textile Milling A normal reduction in the domestic con· sumption of raw cotton was reflected during April, and operations remained on a scale somewhat below a year ago. Consumption during the month amounted to 4,6,2,844 bales, which is considerably less than the average for April, and compares with 481,135 bales in March, and 512,594 bales in April, 1934. During the nine months of the current cotton season, ended April 30, there were 4,096,871 bales of cotton consumed by domestic textile mills, which represents a decrease of 8.1 per cent from the 4,4,57,74,1 bales consumed in the corresponding period of the previous season. Stocks of cotton on hand at consuming establishments on April 30 were in smaller volume than a month earlier or a year ago. Activity at reporting Texas textile mills during April showed a substantial curtailment. Both the consumption of cotton and the production of cloth were in noticeably smaller volume than a month earlier or a year ago. On the other hand, orders for finished products held on April 30 showed a material increase over those a month earlier, and were little less than on the same date last year. Stocks of finished products held by reporting establishments on April 30 were less than a month earlier, but slightly greater than a year ago. Cotton While the exports of cotton through the Movements ports of Houston and Galveston continued on a relatively low level during the past month, they reflected a more favorable comparison with the previous month and the corresponding month last year than has been recorded in some time. Shipments from Houston were greater than in the previous month, which is contrary to seasonal, and exceeded those in April, 1934, by 21.1 per cent. While shipments from Galveston evidenced a slight decline from both comparative periods, it is sig· nificant to note that the reduction from the previous month was much smaller than seasonal, and the decline from 8 year ago was substantially smaller than had been recordeo for several months. Receipts of cotton at these ports during April declined seasonally from those in the previous month, and continued considerably below those a year ago. Stocks of cotton held on April 30 were also less than a month earlier or a year ago . Indicating a check in the downward trend of exports of American cotton, shipments from all United States ports during April turned upward after several months of consistent declines. Exports reflected a contrary to seasonal increase over the previous month, and while a decrease waS again registered as compared with a year ago, the reduction was much smaller than any recorded for a similar com· parison during the current season. There were 323,155 bales of cotton exported during April, as compared with 317,798 bales in March, and 386,594 bales in April, 1934,. Ship· ments during the nine months of the current season con' tinued below those in the same period last season. COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Balcs) . :::::::::::::::: : : ~~:i~ Stocke, April 30 ............. . April 1035 14,762 90,180 April 1934 114,656 92,221 August 1 to April 30 This senaon Last season 906,152 2,085,543 1,028,208 1,861,004 389,347 658,636 COTTON-GALVESTON STOCK STATEMENT (Balca) April 30, 19S5 10,000 For France ..... . ............... . . .. ...... . ... . . .. .. . 2,700 For other foreign ports ..... . ......................... . 27,900 For coastwise porta ..... ................ .... .. ...... . 500 rn comprcsacs and depots ... ...• ... .. ...... •........ ... 346,647 For Great Britain ....... .... ........ .... ........ .... . Total. . .. . . ................. . ....... . ... .. 389,347 April 30, 1934 1,200 3,100 30,400 4,000 610,8a6 658,636 COTTON CONSUMED AND ON HAND (Balcs) Cotton-growing states: Cotton eonsumed... . .. .. . .. On hand April ao inConsuming cstablishments. Public storage and comprcsscs ..... . ......... . Unitod Statcs: Cotton consumed. . . . . . . . . . . On hand April 30 inConsuming cstablishments. Public storngo and comprcsacs ......... ...... . April 1985 April 1934 374,013 406,318 462,1144 512,504 August 1 to April 30 This sonson Last sonson 3,283,801 SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES POR'l'8-(Balcs) 3,551,011 823,307 1,233,018 7,018,160 6,748,217 4,006,871 4,457,741 1,060,046 1,584,620 7,201,605 7,094,302 Receipts....... . ...... . ........ ....... .... . ..... ..... Exports: United Kingdom...... . .......... . .......... France......................... . ..... ...... Italy............................ .. .... ..... Germany................. .. ...... . ......... Other Europe.......................... ..... Jar an ...... . .............. . ........... ..... AI other countries.......... ................. T s otal foreign ports .. . ................................ tocks held at all United Stutce ports, April 30. .. . .. .. . .. August 1 to Apri130 This senson Last senson 4,206,305 7,194,745 607,036 1,125,062 318,841 682,849 397,455 570,378 273,569 1,192,662 665,334 87 1,377 1,284,211 1,564,314 348,439 477,033 ~,805,785 6,484,605 2,010,000 3,000,734 MONTHLY BUSINESS REVIEW - Daily average yield in Texas, which amounted to 1,029,700 barrels was 7,600 barrels less than in March, but 42,000 barrels greater than in April last year. South Texas was the only area in which an increase over the previous month occurred. The daily output in New Mexico increased further during April, and that in North Louisiana also reflected a slight gain. COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Baleo) April 1036 23,182 131,180 ~~r:.':: ::::: : : : : : : : : : : : : : s, April 30 . . .. .. .... .... ..... .. . 00 April 1034 32,070 108,316 August 1 to April 30 This S0l180n Ll18t SOl18on 1,045,702 2,172,350 2,211,011 1,164,416 668,464 1,070,214 .. ..... . APRIL DRILLING RESULTS SPOT COTTON PRICE8-(Middling Bl18is) (Conts per pound) New York i~g:~~t· iii i~: iii i: iii ~.;:;::;;;;;; April, 1036 High Low 12 .26 11 .20 12.30 11.26 11 . 76 10 .80 12.30 11 .26 12.26 11 .26 May 16, 1035 12 .35 12 .38 12 .06 12 .35 12.36 '- The production of crude oil in the Eleventh District during April was on a smaller scale than in March, though it continued to exceed that of a year ago by a substantial margin. Total output ~as reported as 33,042,000 barrels, which compares with 14,335,6?0 barrels in the previous month, and 31,767,000 )anels In April, 1934. A sharp increase was witnessed in t~e amount of drilling activity. New wells completed during ~ ~ .month totaled 1,314, as against 876 in March; and the 3nIhai production of those that were successful amounted to ,807,388 barrels, as compared with 2,576,214, barrels in the preceding month. The expansion appeared to be general over the district . - OIL PRODUCTION-(Barrels) Inerease or deerease over April, 1035 Maroh, 1036 Total Daily Avg. Total Daily Avg. OXI18 ... . . ..... . . . . .. . 3,646,000 118,200 - 211,200 - 3,000 ~orth TIW 176,600 - 240,150 - 2,060 E:tr~oxas""t Texas .. .. . . . . . . . 6,208,000 14,814,000 408,800 603,000 ~ ,200 South Tex " "''' '' ''''''''' 1,840,600 61,650 12,060 +1,600 Texas Coas"i~C. : : : : : : : : : : : : : : 6,388,500 170,460 - 208,000 - 960 --- 1,020,700 48,700 23,000 'rotal Distriot . .. . .. 33,042,000 1,101,400 - 1,266,300 8,400 10,000 - 7,600 +1,300 + 100 - 1,203,600 - 6,200 -- - - North Toxas ... ... ... . ..... Central W""t Toxas .. . . . . ... East Toxas ............. .. . South Toxas ........... .. .. Texas Coastal.. ............ Complotions 306 127 635 170 110 Producers 101 77 504 101 60 Gas Wells 10 7 6 10 2 Failurea 106 43 25 68 30 Initial production 66,435 100,016 3,505,465 20,827 23,486 Total Toxas . . . .. New Mexioo . .. . . . .. .. .. . . . North Louisiana .. .. .. .. . ... 1,257 24 33 042 21 10 36 0 280 3 14 3,736,118 71,819 461 ~ril 1,314 876 073 678 44 23 207 180 3,807,388 2,576,214 totals, district . ... . . . . aroh totals, distriot .... . . . Petroleum New MexioTotal Texl18 ..... . .. 30,801,000 1,461,000 North Lou~i~;'~·.·.: : :::: : ::::: 600,000 7 CRUDE OIL PRICES Telas Coastal (34 gr. and above) ....... . .. . .... . . .. .. .. North Toxl18 (40 sr. and above) . .......... . ........... . North Louisiana (40 gr. and above) ... . .. . .. ........... . May 10, 1035 $1.12 1.03 1.08 May 11, 1034 $1.12 1.03 1.08 (Oil statisti08 compilod by "The Oil Weekly", Houston, Texas) Building A marked expansion over both the previous month and the same month last year was shown in the volume of construction permits issued at principal cities in the Eleventh District during April. The total valuation for the month was $3,024,570, this amount being three times as large as that reported in April, 1934, and more than twice as great as the total for March of this year. The increases were fairly well distributed among the reporting cities, although declines from both comparative months were reflected at two cities. For the first four months of this year, the aggregate valuation of building permits issued amounted to $9,511,564, as compared with a total of $3,451,981 for the corresponding period in 1934. BUILDING PERMITS April, 1035 No. marillo . . . . .. . uBtin .. .. "'" caumont or~us Ch'ri; ti ' . .1 as " ' I Paso::::: : :: 'ort Worth . . .. . nlveston ouBton . ... : : : : : ort Arthur an Antonio' . . . hreveport . .' : : : nco . iohitn 'Fnli~ : : : Valuation April, 1034 No. - -10 -$ --20,030 24 134 148 41 420 64 120 126 270 89 1,806 133 41 16 203,100 46,008 28,185 301,596 620,401 556,208 53,025 503,580 24,481 375,070 132,635 33,647 26,500 81 105 16 409 42 70 131 100 42 130 228 28 55 Peroentagc change valuation over year Valuation S 62,707 07,116 15,233 25,700 202,786 18,560 63,800 55,252 262,845 13,810 48,122 00,032 80,387 0,109 ---------- Total. . " 3,427 $3,024,670 1,560 $1,006,538 "Inorease Ovor one thousand per cent. - 62. 0 +336 .8 +202 .0 + 0.3 + !8 .7 +771.8 2.4 91.6 + 77 .2 +670.4 + 46 .0 - 58 . 1 + 101. 0 -+ --+200 .5 March,1935 No. Pcroentage ehange valuation over month Valuation 33 $ 28,773 221,254 162 125 37,350 54,437 70 213,864 438 19,712 40 88,150 05 114 27,306 270 318,768 24,403 01 244,377 1,650 170 100,278 83 61,027 41,280 55 -3,370 --$1,481,888 January .l through April 30 No. 1935 Valuation No. 1034 Valuation S 80,428 2,426,843 146,493 142,100 1,120,520 707,150 1,073,247 316,137 1,786,002 104,750 878,874 442,087 138,662 147,208 72 276 324 84 1,402 140 310 453 693 150 516 530 78 88 S 120,112 +531.0 + 97.5 + 58 .0 .3 + + 53 .5 + 82 .3 - 45 . 7 - 35.8 101 548 458 204 1,502 170 391 423 962 271 3,771 580 U3 112 +104.1 0,705 $0,511,564 5,228 S3.451,081 - 80.4 +i~2 . 5 + 3 .2 - 48 .2 + !1. 0 - -- 212,610 63,808 110,264 812,460 02,116 230,820 149,026 077,525 48,028 252,840 206,275 130,608 20,580 Pereontage ohange valuation ovor poriod . - 37 . 7 + 172. 3 + 10 .2 + 37 .9 + 667 .7 +847 .5 + 112 .1 + 82. 8 +118. 1 +247 .6 +115 .4 + 6.2 +307 .5 -+175.5 -- MONTHLY BUSINESS REVIEW 8 The production of Portland cement at mills in Texas amounted to 347,000 barrels in April, this being 24.8 per cent larger than the March output, but 2.0 per cent under that of April, 1934. ~hip ments increased to 331,000 barrels, as compared WIth a volume of 327,000 barrels in the previous month, and 316,000 barrels in the same month last year. The amount of stocks on hand, reflecting a slight gain during the month, was reported as 6!82,000 barrels on April 30, as compared with 617,000 barrels a year ago. Cement PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT (In thousands of barrels) April 1035 Produetion at Texas mills..... 347 Shipments from Texas mills. . .. 331 Stoeks at cnd of month at Texas mills......... .... .. ....... 082 Percentage ehange over April Mar. 1034 1935 - 2.0 +24.8 4.7 1. 2 + + January 1 through Apr.30, 1935 1,140 1,1 27 Pereentage ehange over ycar - 9.7 - 6.0 +10.5 + 1.9 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board as of May 25, 1985) Factory production and employment showed little change in April, while output at mines declined. Residential construction showed a further increase. PRODUCTION AND EMPLOYMENT Combined output of factories and mines, as measured by the Federal Reserve Board's seasonally adjusted index of industrial production, declined from 88 per cent of the 1923-25 average in March to 86 per cent in April. This downward movement reflected chiefly decreases in the output of steel, cotton, silk textiles, and bituminous coal, offset in part by increased mill consumption of wool, and larger output of anthracite. At steel mills output declined from 4,9 per cent of capacity in March to 45 per cent in April and, according to trade reports, showed a further slight decline in the first three weeks of May. In the automobile industry there was a further increase in production during April, followed by a decline in the early part of May, partly as a consequence of labor disputes. In the tobacco industry activity was maintained at recent high levels. Output of bituminous coal declined sharply at the beginning of April, following a period of relatively high production earlier in the year. The total number employed in factories was about the same in the middle of April as a month earlier and factory payrolls also showed little change. Declines in employment were reported for railroad repair shops and textile mills, while in the machinery industries employment continued to increase and in the men's clothing industry it showed none of the usual seasonal decline. In agriculture and in the building industry employment increased seasonally. Total value of construction contracts of all kinds, as reported by the F. W. Dodge Corporation, showed little change from March to April. A further increase in residential projects was offset in the total by a decline in contracts for other types of construction. DISTRIBUTION Total freight-car loadings declined in April, contrary to seasonal tendency, chiefly as a consequence of a large de- crease in shipments of bituminous coal. Department store sales, which had shown a sharp increase in March, increased by considerably less than the estimated seasonal amount in April. COMMODITY PRICES The general level of wholesale commodity prices, as meas' ured by the index of the Bureau of Labor Statistics, has shown little change since the middle of April, following an increase in the early part of the month, and in the week ending May 18 was at 80.0 per cent of the 1926 average as compared with 79.9 per cent in the week ending April 13. For this period the prices of cotton, hogs, hides, and non' ferrous metals increased somewhat, while grains and butter declined. In the following week there were further increaseS in the prices of hogs and of lead, while prices of wheat decreased further. BANK CREDIT During the five weeks ended May 22 member bank bal· , ances with the Federal reserve banks increased to $4"820,, 000,000, the highest figure on record, and excess reserveS rose to a new high level of over $2,350,000,000. The prin' cipal factors in the increase of member banks' reserve bal· ances were the disbursement by the Treasury of $240,000" 000 of funds previously held in the form of cash or on deposit with the Federal reserve banks and further gold imports of $90,000,000. Deposits of reporting banks in lead· ing cities increased further during the four-week perio d ended May 15, reflecting chiefly disbursements by the United States Treasury, Yield on short-term Government securities declined slightly further during this period, while other short-term open-market money rates remained at lo\~ levels. The discount rate was reduced from 2 per cent to Viz per cent at the Federal Reserve Bank of Cleveland and fro~ 21/2 per cent to 2 per cent at the Richmond, MinneapolIs, Kansas City, and Dallas banks. Rates are now 1112 per cent I. at New York and Cleveland, and 2 per cent at all the other reserve banks.
@FedFRASER