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MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS CH~S. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal Reserve Agent (Compiled May 15, 1936) Dallas, Texas, June 1, 1936 Volume 21, No.4 This copy Is released for publication in morning paper s-- May 31 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Federal Reserve District Change From March April 1936 gank debits to Individual accounts (at 18 cities) $695,826,000 5.2 % 4.7 % ~~;!!:,eb:n~t~~~ns:I~~"'m;mli;r" 'ba'nkii" at" ;r"d .............. It of month.................................................................... $ 31 5,036 +$109,480 BCserve bank ratio at end of month.................... 62.0 % 1.6 points ~ildlng permit valuation at larger centers...... $ 4,675.184 18.5% Cornmerclal failures (number)................................ 17 8 o rnrnerclal failures (liabilities) ............................ S 620,000 + 187.4% 11 production (barrels) ............................................ 88,258,450 .02% + A noticeable improvement in the outlook for the agricultural and livestock industries and an active demand for lllerchandise at retail and wholesale were the leading developments in this district during the past month. The April sales of department stores in principal cities showed a ~urther expansion of 5 per cent as compared with the prevIOUS month, and exceeded those in the same month of 1935 by 12 per cent. In wholesale trade the volume of business Was well sustained. The changes from the previous month in most reporting lines were more favorable than usually Occur at this season and sales reflected a substantial increase OVer April last year. While debits to individual accounts at banks in larger cities evidenced a seasonal decline of 5 per cent between March and April, the total for the latter lllonth was 12 per cent higher than a year ago. The persistence of the drought during much of April over a wide area of the district affected crops adversely and delayed planting operations. Since the middle of April, however, practically all sections of the district have received some moisture and the rainfall has been generally heavy over the eastern half of the district and in scattered areas elsewhere. Since the rains most crops have made rapid improvement and farmers have proceeded with planting operations. While sma]l grains were benefited to some extent, acreage abandonment has been heavy and the crops on much of the acreage remaining for harvest are very poor. Livestock ranges deteriorated somewhat in April, but an improvement occurred following the rains. Livestock generally have held up fairly well. The seasonal demand for funds was reflected by a further moderate increase in Federal Reserve Bank loans to member banks. "All other" loans of reporting member banks in leading cities which include loans for agricultural, commercial, and industrial purposes were expanded between April 8 and May 13, and on the latter date the margin of increase over a year ago was larger than at any time during the current year. Federal Reserve notes in actual circulation amounted to $75,4.32,000 on May 15, which was slightly larger than the total a month earlier. The daily average of combined net demand and time deposits of member banks aggregated $785,633,000 in April as compared with $778,553,000 in March. The valuation of building permits issued at principal cities of this district during April declined 19 per cent as compared with the previous month, but the total was 55 per cent larger than in the corresponding month of 1935. The increase over last year was participated in by most of the reporting cities. BUSINESS Wholesale Trade Merchandise distribution at wholesale in this district, as reflected by sales of reporting firms, compared favorably with that of the previous month despite the disquieting effects of the drought which persisted during most of the month OVer much of this district. In most reporting lines the March to April changes were better than average, and the volume of business was materially larger than in the same month last year. Colleclions generally showed an improvement Over the previous month. The wholesale dry goods trade, after showing an upward trend during the first three months of the year, declined 7.6 per cent in April which was slightly less than the average recession at this season. As compared with a year ago, April sales reflected a gain of 11.7 per cent and those for the year to date averaged 9.9 per cent larger. Reports' indicate that consumer demand has been well sustained generally_ Inventories at the close of April were moderately lower than a month earlier and continued substantially below those a year ago, Collections showed a general increase over This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) --------------------~~~~~~==~----------------~- MONTHLY BUSINESS REVIEW 2 the previous month, the average being 13.0 per cent. A seasonal recession in the distribution of drugs by reo porting wholesale drug firms occurred during the past month. While the April sales were 5.4 per cent smaller than in the previous month, they exceeded those of the corres· ponding month last year by 29.2 per cent. Business during the first four months of the year averaged 26.0 per cent better than a year ago. Collections were slightly smaller than in the previous month. The demand for farm implements at wholesale reflected a sharp decline during April when sales of reporting firms in this district were 52.9 per cent smaller than in the prevo ious month. The volume of business, however, was 18.9 per cent larger than in the same month of 1935, and sales during the first four months of the current year averaged 59.0 per cent above those in the corresponding period of last year. April business over a very large area was reo stricted considerably by the persistence of the widespread drought during much of the month which caused a deterior· ation in small grains and delayed plan ting of row crops. Collections during the month showed a substantial decline. The April sales of reporting hardware firms were slightly larger than in the previous month and exceeded those of the corresponding month last year by 24.1 per cent. The aggregate volume of business during the first four months averaged 21.6 per cent higher than during the same period of 1935, and the better business was shared by all reporting firms. The hardware trade has been stimulated by the in· creased building activity evident in most sections of the district. Collections during the month exceeded those of the previous month by 10.2 per cent. The sales of reporting wholesale grocery firms during April showed a further increase of 2.3 per cent as compared with the previous month, whereas a decline usually occurs at this season. Business was in practically the same volume as during April, 1935. There was an increase of 5.1 per cent in collections during April as compared with the prevo ious month. CONDITION OF WHOLESALE TRADE DURING APRIL, 1936 Percentage of Increase or decrease i nK:ltio of collection. during April Net S.les Stocks Net S.les to :account. Apr . 30, 19 36 Jan. 1 to d.te April, 193 6 ;'\nd note. comp2red with compared with compared wi th outst.ndin, same period Apr . 30, Mar . 3 I, Apr il 1hrch on Mar. JI I•• t year 1935 1936 1935 1936 Groceries ............ .. +.8 Dry Goods............ .. +11 .7 Farm implements +1 8.9 Hardware .......... .. +24.1 Drugs .................. .. + 29.2 + 2.8 - 7.6 - 52.9 +.7 - 5.4 +.3 9.9 +59.0 +21.6 +26.0 + + 1.3 - 17.8 +35.4 + 4.5 + 19.7 81.1 86 .6 5.9 50.0 67.6 + .1 - 8. 5 + .9 .6 + 1.5 Retail trade in larger cities, as reflected by department store sales, showed II further expansion during April. The d~l. lar volume of business was 4..7 per cent larger than III March, and was 11.6 per cent better than in the corresp~n~· ing month of 1935. The latter figure compares with a Slll1 l • lar gain of 9.2 per cent in March. The adjusted index of department store sales computed by this bank, which ~ake: allowance for average seasonal changes and the vanabl date of Easter, rose from 90.5 per cent of the 1923·2,5 average in March to 91.7 per cent in April, and the latter figure compares with 80.3 per cent in April, 1935. The increase in sales durinO' the first four months of the current year over those in tl~e same period last year was 12.5 per cent. Retail Trade The dollar volume of stocks carried by reporting firms on April 30 was 4..5 per cent larger than a month earlier, and exceeded that of a year ago by 4.. 9 per cent. The rat of stock turnover during the foul' months of 1936 was 1.0 as against .99 in the same period last year. 6 Collections on regular accowlts reflected an improvement during the month. The ratio of April collections to regular accounts outstanding on April 1 was 40.7 per cent, as co~· pared with 39.5 per cent in March, and 39.6 per cent )11 April, 1935. While payments on installment accounts de· clined in April, they were larger than a year ago. BUSINESS OF DEPARTMENT STORES Total sales (percentageJ : !~~n: i~~~: ~~:~:~~d ~ii~ ~~~~h.1i~~6::::::::::::::::::::::·.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: January 1 to April 80, 1986, compared with same period last year ....................................... .. Credit sales (percentage) : !~~:l: i~~~: ~~:~~~::~ ~l~ ~~~~h:i~~6::::::::::::::·.·.::::·.:·.:::::::::::::·.:·".:::::::'.:::::::'.::::::::::::::::'.::::::::::::::: January 1 to April 80, 1936, compared with same period last year ....................................... .. Stocks on hand at end of month (percentage) : !~~ll: i~:~: ~~:~:~:~ :Ii~ ~~~~h:~:k:::::::::::::::::::::~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Stock turnover (rate) : Rate of stock turnover In April, 1985 ................... ..................................................................... .. Rate of stock turnover in April, 1986................................................................................ ............ . Rate of stock turnover January 1. to April 80, 1985 ................................................................. . Rate of stock turnover January I, to April 80, 1986................................................................. .. Ratio of April collections to open accounts receivable and outstanding April I, 1986 .......... .. Ratio of April collections to Installment accounts receivable and outstanding April I, 1986....................................................................................................................................... .. Indexes of department store sales: Unadjusted-March. 1986.................. .................................................................... .. Unadjusted-April, 1986 .........................................................................................:::::::::::::::::::::::::: Adjusted-March, 1986 ............................ ........................... ............................................................... Adjusted-April, 1986......................................................................................................................... Indexes of department store stocks: Unadjusted-March, 1936 ................... ............................................................................................. . ~df:~t~d~Ma~~h~liJir .................................................................................................................... .... ....................•.•........................................................................................... Adjusted- April, 1986......................................................................................................................... D.na. + 11.8 2.7 + + 18.1 Ft. Worth HOUlton S.n Antonio + 15.8 + 4.5 + 15.2 5.4 + + 10.8 + 8.6 + 15.0 + 1.8 + 16.2 + 15.5 9.5 14.6 + 9.9 + 9.6 + 18.2 + 18.1 + 8.6 + 14.9 + 14.9 + 8.2 + 15.0 + + =1= 10.3 4.0 + + .9 9.8 + 1.l 8.7 .26 .27 .93 1.05 43.0 + + 8.4 7.5 Othe,. =1= 12.4 6.1 + 10.1 t 18.0 8.0 + 10.7 + + 2.2 1.0 Totol Di,' t. + 11.6 + 4.7 12.5 + + 14.3 + 5.8 + 14.0 + + 4.9 4.5 .28 .80 1.09 1.16 42.6 .22 .24 .83 .88 38.0 .26 .27 .99 1.06 40.7 14.9 20.7 15.5 .29 .80 1.17 1.21 41.7 .20 .24 .80 .92 36.7 17.0 11.4 98.8 94.5 94.2 96.4 89.5 98.7 98.2 94.6 88.6 98.0 88.0 98.0 88.1 80.6 85.7 79.0 59.7 62.2 59.1 60.4 66.4 72.7 64.5 69.9 45.5 46.6 45.5 45.1 49.5 56.4 46.7 52.8 86.9 89.9 90.6 91.7 61.6 64.4 59.8 61.9 - MONTHLY BUSINESS REVIEW Commercial Failures The business mortality rate in the Eleven th Fed era I Reserve District reo Jlected a sharp decline in April. Accord· iug to DUll & Bradstreet, Illcorporated, there were 17 8 failures during the month as compared with 25 in March and 32 in April, 1935. The indebtedness of defaulting firms increased from $219,000 in March to $520,000 in April, and the latter figure comparcs with $4.03,000 in April, 1935. AGRICUL TURE Light to heavy rains which have fallen over much of the Eleventh District since . . the middle of April have been very bene· ftcla l for the planting and growth of most field crops. The precipitation was heavy generally over the eastern half of the district. While most of the western half has received Some rain, it has been heavy in only a relatively few scat· tered localities. The drier sections in cl u d e portions of central·west Texas, most of west Texas, the western half of Lhe Texas Panhandle, and eastern New Mexico. These areas are still in urgent need of heavy general rains. Crop Can. ditions Small grains deteriorated rapidly during April and the acreage abandonment was very heavy. The Department of Agriculture, in its May 1. report, estimated that 55 per cent f the acreage sown to wheat in Texas in the fall of 1935 lad been abandoned, and that the condition of the crop on the acreage remaining for harvest was the lowest of any year on record. The 37 per cent condition on May 1 indio cates a per acre yield of 6.4 bushels, as compared with 7.0 bushels in 1935. Production was placed at 13,389,000 b~shels as against the April 1 estimate of 19,057,000 bush· e s, and a harvest of 10,010,000 bushels in 1935. The acreage abandonment was also heavy in New Mexico and Oklahoma and the prospective production was sharply reo duced. The condition of oats in Texas on May 1 was rated ft 38 pel' cent as compared with 61 per cent on that datc ast year. Due to the dry weather, a large percentage of the rop headed short and the rains came too late to be of much )enefit. In those sections which received rain before the oats headed a considerable improvement in the crop has occurred. The condition of the crop in Louisiana was reo ported at 68 per cent on May 1, as compared with 72 per cent a year ago. r i f The tame hay crop in Texas was estimated at 48 per cent Tnormal on May 1 as compared with 62 per cent last year. he. corn crop, which made poor to only fair progress in ~pnl, has shown rapid improvement since the betterment In moisture conditions. . The planting of cotton, which was delayed by dry weather ~he northern half of Texas prior to May 1, progressed lapldly during the succeeding two weeks. Planting has started in those areas of northwest Texas where soil mois· LUre permits. The progress of the crop has been mostly good Lo excellent in the southern half of the State with chopping n.nd ~ultivation well advanced. Planting is nearing comple· Lion 111 north Louisiana. 1.11 f The Departmem of Agriculture reported that the outlook or the Texas peach crop is unfavorable. The peach set in the no~thern half of the State is very ~igh t. On the olher land, It was reported that the outlook IS favorable for an excellent crop of citrus from the 1936 bloom as there was a heavy bloom and the set of fruit is very good. A 1I0ticeable improvement in the condi· tion of ranges and livestock over a large area of this district occurred as a result of the rains during the past month. The precipitation, however, was mostly light and of only temporary benefit in much of the Edwards Plateau region, west Texas, the counties in the western half of the Panhandle, and in eastern New Mexico. These areas need heavy general rains to promote the growth of grass and to insure summer grazing. Rain is also needed in Ari· zona. Other sections of the district have had sufficient mois· ture to give ranges a good start. Livestock generally have been maintained in fair to good condition by supplemental feeding, but the supply of old feed is being exhausted in northwest Texas and eastern New Mexico. The Department of Agriculture reported that indications point to good lamb and calf crops and that the animals are in a healthy condition. Livestoclc The condition of cattle ranges in Texas was rated by the Department of Agriculture at 74 per cent of normal on May 1, as compared with 76 per cent on April 1, and 66 per cent a year ago. Sheep and goat ranges declined 5 points during April, but the 73 pel' cent condition on May 1 com· pared with 59 per cent on that date in 1935. The Department of Agriculture stated that the greatest deterioration in cattle ranges during April occurred in the northern half of the State. Livestock held up well despite the dry weather in April as they were maintained by supplemental feeding in lhe dry areas. The May 1 condition of cattle was reported at 80 per cent, which was 2 points higher than a month earlier, and 10 points above that on the same date in 1935. Sheep and goats declined 2 points during the month. The condition of both ranges and livestock declined during April in New Mexico and Arizona. Movements and Prices The April receipts of sheep at the Fort Worth market reflected a large seasonal increase over the previous month and were material! y above those in the same month last year. 'While thc arrivals of hogs declined sharply between March FORT WORTH LIVESTOCK RECEIPTS (Number) Cattle ...................... Calves....................... Hogs ......................... Sheep ........................ April April 1936 1935 43.447 19.996 29.740 78,697 ~ 8 . 88 2 20.945 41.104 94.746 Change over ycnr + 5.431i 950 + +11.864 +21,0~9 M arch 1936 47.700 21.451 59.667 40,158 Change over month + 1.182 - 506 - 18.~63 +54.588 COMPARATIVE TOP LIVESTOCK PRICES (Dollars per hundredweight) Beef steera. ............................................................ . Stocker steers...................................................... .. Heifers and yearllngs ........................................ . Butcher cows ......................................................... Calves ...................................................................... . Hogs ....................................................................... .. Sheep...................................................................... .. Lambs ...................................................................... April Ap ril 1936 $ 8.50 7.60 9.00 6.50 7.50 10.15 0.60 10.25 1935 $11.00 MMCh 1916 $ 8.50 12.00 7.26 8.50 8.75 5.00 8.00 6.76 8.50 6.00 7.50 10.80 6.00 9.60 4 MONTHLY BUSINESS REVIEW and April, they were still considerably higher than a year earlier. The supply of cattle was larger than in either com· pm'ative month. The cattle market evidenced a weak undertone during the past thirty days. While quality offerings usually cleared to a good advantage, there was a decline in the available sup· ply of thi s class of arrivals. The hog market remained generally steady ar ound the $10.00 level during most of April and then declined sharply. At the middle of May the best offerings were brin ging only $8.65. Sheep and lamb pri ces showed all upward trend during April but declined somcwhat durin g the first half of May. FINANCE Reflecting the seasonal demand for funds, the borrowings of member banks at the Federal Reserve Bank of Dallas rose from $282,000 on April 15 to $413,000 on May 15, and the latter total compares with $511,000 on the same date last year. The volume of industrial advances outstanding declined $20,000 during the month, and on May 15 was $87,000 lower than a year earlier. While this bank's investments in United States Governm ent securities showed no chang0 during the monlh, they were $23,525,000 larger than a year ago. The cash reserves of this bank totaled $150,162,000 on May 15, which represents an in· crease of $1,965,000 as compared with April 15, and $53,· 51.3,000 as compared with May 15, ] 935. The r eserve deposits of member banks declined $3,122,000 between April 15 and May 15, but the total of $124.,4.61 ,000 on the latter date was $14,315,000 larger than a year earlier. Fed· eral Reserve notes in actual circulation rose $907,000 durin g the month. Operations of the Federal Re· serve Bank CONDITION OF THE FEDERAL RESERVE BANK (In thousanda of dollar a) Total caah reaerveo. ...... _..................................... Diacounta for member banka ............................ Other billa dlacounted....................................... . Induatrlal advance a............................................. . Commltmenta to make Induatrlal advance a . Billa bought In the open market................... . United Statea Government aecuritiea owned .. All other Inveatments........... _.. _...... _.............. . Total earning aaaets ............................................ Member bank reaerve depoalto. .................. _.. . Federal Reaerve notea In actual circulation. Condition of Member Banks in Selected Cities May IS. 1936 $150.162 418 None May 15. 19l5 $ 96,649 511 None 1.721 582 133 95.000 1.808 160 122 71.475 97.267 124.461 75,432 78.916 110.146 47.283 None None Apri l I S. 1916 $148 .197 282 None 1.7H 584 133 96.000 5 97.161 127 .583 74.525 Reports from member banks in selected cities reflected a further increase in loans and deposits between April 8 and May ] 3, but there was a decline in invest. ments. Their holdings of direct and full y guaranteed securities of the United States were reduced $3,911,000 during the five weeks and the total on May 13 was $3,714,000 lower than a year ago. Investments in other securities were increased slightly to $47,834.,000 on May 13, which amount is $6,375,000 larger than on May 15, 19~5. Loans on securities totaled $4.2,935,000 on May 13, wInch represents a moderate decline from five weeks earlier or a year ago. "All other" loans (agricultural, commercial and industrial loans) rose from $147,071,000 on April 8 t~ $150,077,000 on May 13, and the total on the latter date exceeded that of a year ago by $12,883,000. The demand deposits·adj ~sted of these banks aggregated $338,384.,000 on May 13, willch compares with $330,770,000 on April 8, and $289,953,000 on May 15, 1935. While their time deposits increased $101,000 during the five·week period, they were $5,522,000 lower than a year earlier. CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thouaand. of dollara) United States aecuritiea (owned) .................. Securltlea fully guaranteed by United State. Government (owned) ....................... . All other atock.. bonda, and aecurltlea Lo~~~n~~) .~~~~iti~8:::::::::::::::.·:::::::::::::::::::::::::::::: April 8. May 13. 1916 $167.676 1935 $169.889 1936 $178.216 U6.Hl 38.442 34.812 47 ,88 ~ 41.4 "9 48.672 48.38 7 May IS, 42.985 150.077 193,012 ~7.700 1~7.071 All other loan a .................................................. . 137.19~ 190.408 'fotal lonns .............................................................. 180.866 380.770 Demand d epoaits-ndju8ted~ ............... ..... ...... . 289.963 a 88.88 ~ 117.94 4 Time depoaits ............................,............................. 128.667 118.045 26.878 fnited States Gov"'nment depoaits .................. 27,479 38.501 174.681 ntel'bank depoaits ............. ..... .......................... . 169.804 129.616 47 :1 169. Balances with domeatic bunka ............... . ...... . 138.253 178.608 78.0:16 Reserve with F ederal Reaerve Bank ............. 62.5:J3 78.589 Bl\la paya ble and rediacounts with F ederal NOlle Reaerve Bank........................... _......................... NOll e Non e "Demand deposits other thnn in terbank a nd United Stntes Government. less e!lah items reported RR on ha nd or in process of collection. Debits to individual accounts at banks in eighteen reporting cities in the Eleve.nth District totaled $695,326,000 d u rJ n g April, which represents a seasonal de· cl ine of 5.2 per cent as compared with those in the previous month, but an increase of 12.3 pel' cent over the total for April, 1935. There wcre onl y two cities which reporLed Apri l debits in smaller volume than a year ago. Debits to Jndividual Accounts DEBITS TO INDIVIDUAL ACCOUNTS (In thouaanda of dollara) March Petg. change 1916 over month _ 3.7 6.828 +10. t 24.462 _ 3.0 22.405 5.2 2.691 _ 11.7 228.142 _ .7 22.628 .3 _ 71.340 _ 7. 5 22.57 8 _ ».8 176.985 7.3 7.057 3.3 2.513 _ 1." 59,474 _ 3.6 86.909 _ .5 6.094 1.7 9.995 9.2 12,195 _ 6.4 18.159 0.0 ~ Apri l April 1916 6.570 26.921 21.740 2,880 106.996 22.467 71,157 20 .888 166.706 7,573 2.597 58,573 35,595 6,064 10.167 13.813 12.317 12,851 695.826 Pete. change 19l5 over year Abilene........................... 6.264 + 4.9 Auatln............................. 35,269 - 28.7 Beaumont....................... 19.007 +14.4 COralcana.... .................. 2.680 + 7,6 Dallas.............................. 168.292 +17.1 Ell Paao........................... 19.881 +18,8 Fort Worth ................... 64.90 5 + 9.6 Galveaton........................ 18.683 + U,8 Houaton.......................... 138.602 +20.8 Port Arthur................... 6,889 +19.5 RoawelL......................... 2.081 +24.8 San Antonio.................. 63,888 - 8.8 Shreveport .................... 25.868 +37.6 Texarka na·.................... 5.252 +15.5 Tucaon ........................... 8.470 +20.0 + Tyler................................ 10.304 +29.2 Waco................................ 11.S81 + 8.7 Wichita Falls................ 12.051 ~ -::G.2 TotaL............. 619.067 +12.8 733,205 ' Includea the fi g ures of two bank s in Texllrkllna. Arkllnslla. locatcd in the Eighth District. + + + + -----------------------------------------------------Deposits of Member BanJ.s The daily average of combined net de· maud and Lime deposits of member banks in the ElevenLh Federal Reserve Distri ct reflected a further ex pansion of $7,080,000 between March 5 MONTHLY BUSINESS REVIEW and April. The average for April amounted to $785,633,000, ~\rhi ch was the highest figure r ecorded for any month duro mg the current year. The principal change during April Was in the net demand deposits of reserve city banks. DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) Reserve City Banks Country nank. Combined Tot. l Time Net Dcmnnd Time Ne t D emand Time Net Dcm:md Deposits Deposit s Deposits Deposit.! Depo,itl Deposits Sept., 1985 ....... 82,434 194,050 313,465 111,616 254,422 567,887 Oct., 1085........ 82,934 325,245 110,998 581,625 198,927 256,380 Nov., 1985 ....... 111,867 82,974 589,245 194,841 332,845 256,900 Dec., 1985 ........ 840,708 111,682 244,891 82,843 194,625 585,599 Jan., 1986 ........ 845,049 110,051 241,981 85,714 195,765 586,980 Feb., 1986 ...... 87,414 109,664 245,253 197,078 328,805 574,058 Mar., 1936 ........ 108,414 240,515 87,39 0 195,804 837,234 682,749 Apl'., 1936........ 244 ,6 0a 34 5,455 107,560 88,015 195 ,575 590,058 Acceptance Mar/eet Outstanding acceptances executed by ac· cepting banks in this district r eflected a further decline during April. Total acceptances outstanding on April 30 amounted to $634, 364 as compared with $948,785 on March 31 and $1,667,756 at the close of April, 1935. The decline occurred in ac· ceptances based on the domestic shipment and storage of goods as those executed against import and export trans· actions showed an increase over both comparative dates. Savings Deposits The savings deposits of 121 banks in lhi s district which operate a savings de· partment amounted to $151,987,623 on April 30, representing a gain of 0.3 per cent over those a month earlier, and 2.2 per cent over those a year ago. There was a further increase in the number of savings depositors. SAVINGS DEPOSITS April 30, 1936 , lo;th;:e r~s;.i'~, ! Number of re· Number of porting savings banks depositors i.• .• .• ..•• .•.•;. .•. ••.••.•. ;..•.•.•.•.•..•.••. i.......................................... I April 30, 193) Amount 01 5:lvings deposi ts llll' Number of savings depositors Amount of sav ings deposi ts Mnrch 31, 1936 Percentage change over year in savi ngs deposits Number of savi ngs depositors Amoullt of savings depo ~ i ts Percentage change over month 111 s.vlngs deposits :11111[1 72" 50,765 26,185,783 50,612 24 ,821 ,683 7.7 50,619 26,1 29,737 TotaL............................. 121 881,560 $151,987,623 327,719 $148,645,210 2.2 331,28~ $ 1 51 , 5~ 5, 061 *Only 8 bnnkij in Dallas, 10 in Hou8ton, 5 in San Antonio a nd 65 in "all other s" reported t he numbc,' of 8avlngs depositorij. + .5 - 2.8 - .1 .6 + .4 + 2.4 + 1.2.6 + .3 lil i ' illllll1111111 :!1!1\1!1111 + - + .r. + .4 .±..2 + .3 DISCOUNT RATES CHARGED BY MEMBER BANKS DURIN G MAY D. lln, Rate charged customer8 on prime commercial paper such a 8 thnt now eligible for R redl8count under the F ederal Reserve Act .......................... ...................................... .. Rate charged on loans to other bank. secured by bill. receivable....... ........................... .. ate on loa liS secured by prime stock exchange or other current collateral (not Including loans placed In other markets through correspondent banks ) : Demand ............................................................................................................................ .. R te Time .................................................................................................................................... Ra charged on commodity paper secured by warehouse receipts, etc •..................... .. ate on cattle loans...................................................................................................................... .. £1 P.so Fort Worth 3%-7 6- 8 5-6 ~-7 5-8 5-8 2%-8 5% 6- 8 6-8 7-8 6-8 Houston San Antonio W:lCO 3l h - 6 3-7 4 lh-6 5-7 6 6 4-8 4-8 6-8 5-10 8- 7 3-7 8-7 6- 10 6 6-8 6-8 6-8 8-7 7-8 6-8 6-8 INDUSTRY COUol/seed Products The crushings of cottonseed and the production of cottonseed products at both Texas and United States mills, while seasonally smaller in April than in the previous month, STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS United Stntes T e X3S August I to Apri l 30 August I to April 30 Cottonseed received at C ~I s (tons) ....................... Ot nBeetl crushed (tons) . This season Last season This senson Lnst season 3,340,365 3,314,148 Co toll seed on hand 29 ,365 98,858 248 ,878 C Apr. SO (tons )................. 23,195 C r~de oil produced (Ibs. ).273,306,765 225 ,527,406 1,113,561,626 1,081,998,906 n(~ and meal produced 1,607,941 1,663,436 872,090 Ii 11 nB) ............ .................... 444,266 U • produced (tons) ........ 862,474 950,805 208,258 259,826 LInter. produced 8:15,925 167,299 ~rullnlng bales) ........... . 189 ,869 C tocks on hand Apr. 90: 2 8 ,815, 8 6~ 64,875, 139 8,083,239 Cr~dc 011 (pounds) ........ 21,110,198 2 63 , ~ !) :j tO~ ,4 2 9 46,428 IIa Ir and meal (tons ) ... ... ar.,070 u Ij·I,6U,1 1 ~ 8 17'jti :12,109 L' R (tons) .... ....... . ...... . 54 ,fi6 1 147,481 118,678 38,110 tnters (run nlnll balcs) .... 31,087 956,364 955,581 710,081 788,327 3,677,21 5 8,668,437 were on a larger scale than in April , 1935. These opera· tions during the nine months of the current season were also somewhat larger than during the same period of the previous season. Shipments of products from the mills duro ing April reflected a considerable increase over a year ago. Stocks of cottonseed oil on hand at the mills on April 30 were materially larger than on the same date in 1935, but those of other products, except linters at Texas mills, were substantially lower. Textile Milling A further increase 111 the domestic C011' sumption of cotton at all United States mills was registered during April. The lOla l for the month amounted to 576,762 bales, as com pared with 54,8 ,913 bales in March, and 468,402 bales in April last year. The April fi gure represeJlts all increase of 5.1 pel' <:eJll over the previous monlh, and 23.1 pel' cenl over the MONTHLY BUSINESS REVIEW 6 corresponding month last year, Consumption during the nine months of the current season was 13.0 per cent greater than in the same period of the previous season, and was the largest for a similar period since the 1929·30 season. Stocks of cotton on hand at consuming establishments on April 30 were smaller than a month earlier but larger than a year ago . COTTON CONSUMED AND ON HAND (Balee) April April Augu. t I to April 30 1936 1935 This seilS on Last season Cotton.growlng .tate.: ~ 8 6,749 Cotton con.umed .............................. 379,290 3,903,866 3,292,873 Cotton on hllnd April 80 inCon.umlng e.tabll.hments ......... 972,748 824, 269 Public .torage and compre •• e•. 5,909,74 2 7,019,872 United State.: Cotton con.umed .............................. 076,762 46 8 ,~02 4,649,62 1 4,116,761 Cotton on hand April 30 InCon.umlng e.tabll.hments ......... 1,190,413 1,062,143 Publlo .torage and compre •• e. .. 6,020,626 7,203,407 COTTON- GALVESTON STOCK STATEMENT (Bales) April 30, 1936 700 For Great Britnin.............................................................. ··.... ·· 000 For France.......................................................................... ··.... .. 12,600 For other foreign ports .......................................................... .. 1,100 For coastwise ports .................................................................. . In compresses and depots......................................................... 521,021 TotaL ........................................ _.................................. 635,821 SPOT COTTON PRICES Middling Basis (Cents per pound) Aprll,I9 l6 HIBh La ... 11.88 11.49 1l.73 11.35 11.82 11.04 11.69 11.39 11.65 11.35 New york ... .......................................................... .. New Orleans .......................................................... . Dallas..................................................................... .. Houston .................................................................... Galveston ................................................................ . April 10, 19J5 J 1,60 0 2,700 27,90 0 600 346,~ 389,847 M,Y IS, 1936 11. 78 11.67 11.26 11.70 11.67 -----------------------------------------------------The production of crude oil in tl~e Eleventh Federal Reserve District III April totaled 38,253,4,50 barrels, which was approxima\.e~y the same as in March and materially larger than the Apn l, 1.935 production of 33,04.2,000 barrels. The daily average production in April, due to the shorter month, averaged 4,0,800 barrels above the March figure. There were 1,1.12 new wells completed in April including 844 producers With <1n initial output of 1,352,428 barrels. Petrolewn A further seasonal decline in the receipts of cotton at the ports of Houston and Galveston occurred between March and April, but receipts during the latter month were larger than in the same month last year. Exports of cotton from these ports were smaller than in either comparative period. Stocks of cotton at these ports declined further during the past month and at Houston they were lower than a year earlier. Cotton Movements Foreign exports of cotton from all United States ports again reflected a seasonal decline from those in the previous month. Exports for April totaled 352,710 bales, as com· pared with 4,04,74.1 bales in March, and 323,] 55 bales in April, 1935. Shipments during the nine months of the 1935· 36 season aggregated 5,167,070 bales, which is 32.6 per cent in excess of those during the same period of the pre· vious season. The United Kingdom, France, and Germany have shown the largest increases during the current season in the takings of American cotton. COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bale.) April April August I to April 30 1936 1935 This season Last season Receipts.............................. .. 19,620 14,762 1,629,664 906,152 Expllrt. ................................. . 77,799 90,180 1,028,298 1,218,886 Stock., April 30 ................... 686,821 389,847 CO'I"rON MOVEMENTS THROUGH THE POR'r OF HOUSTON Fields in Texas reflected an increase of 33,216 barrels in daily average production in April as compared with the previous month. This increase was participated in by all field s except north Texas where there was little change. Tbe largest gain occurred in the Texas Coastal region. There was a further i.ncrease in both the total and daily average output of oil in New Mexico and nurth Louisiana. OIL PRODUCTION (Barrels ) Incrc:lse or decreAse Apri l, 1936 North Texas......................... West Texlls........................... East Texas ............................ South Texas .......................... Texas CoastaL ..................... Total Texas....................... New Mexico .......................... North Louisiana .................. Total District................... Tot.l 3,597,800 6,148,900 14,897,000 2,881,700 7,378,200 34,848,600 1,909,600 2,000,850 88,268,460 DoUy AVB. 119,927 204,797 496,667 77,723 246,778 1,144,787 68,660 66,678 ovcr Moreh, 1936 DAlly Avg. Totol 88 122,650 4,986 50,250 6,5 2R 294,850 + 4,49 9 61,760 290,400 ~ +33,216 116,100 + 3,106 32,660 72,160 ~ +40,800 10,800 "++ + + + + 1,276,116 (Bale.) April 1936 Receipts........................................... 28,797 Exports............................................ 126,211 Stock., April 80......................................... .. April 1935 28,1 82 181,189 August I to April 30 Thi s season I.ns t !'c:tson 1,668,842 1,554,822 879, 79S 1,046,792 1,164,416 66 8 ,~64 SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTS (Balee) August I to April 30 'fhis season Last Season Receipts....................................................................................... . 6,671,687 4,206,805 Exports: United Kingdom ...................................................... 1,165,764 607,986 France....................................................................... 612,426 818,841 Italy ......................................................................... .. 321,804 397,455 Germany.................................................................. .. 678,24 6 278,569 Other Europe......................................................... .. 800,074 666, 884 Japan ......................................................................... 1,819,885 1,284,211 All other countries ................................................ .. ~~ Total foreign ports.................................................................. .. 6,167,070 3,896,785 Stocks held at all United States port. , April 80 .............. . 1,887,898 2,016,099 APRIL DRILLING Compi ctio ll l' North Texas ..................... West Texas ........................ East Texas ......................... South Texas ...................... Texas COastal... ................ Total Texas................... New Mexico ...................... North Louisiana.............. April tota ls, district .... . Murch totals, district ...... 229 168 265 281 85 1,028 40 49 1,112 1,247 ~SULTS Producers Cos WeUs 141 JS 111 9 246 200 0 70 777 39 28 844 916 1 32 1 11 4.4 48 Failures 76 48 19 63 14 214 10 224 288 CRUDE OIL PRICES May 8, Initial prodDetlon 38,470 76,91 9 874,868 97,07 4 ~ 1,117,618 101,8 16 ~ 1 352,428 1:725,127 Moy 10, 1936 Texas Coastal (84 gravity nnd above) .................................. $1.22 North Texas (40 gravity and above) ..................................... 1.08 North Louisiana (40 gravity and above) ................ ......... 1.10 (011 statistics compiled by The 011 Weekly, Houston, Texas) 19J5 $1.12 1.08 1.08 MONTHLY BUSINESS REVIEW Building The valuation of building permits issued at leading cities of this distr-ict reflected a further decline of 18.5 per cent as compared with the previous month. Substantial increases, however, were shown for half of the reporting cities, and the decreases occurred 7 mostly at those CIties which had a large gain in building operations during the first quarter of the year. As compared with the previous year, the April valuation showed a gain of 54..6 per cent, and the aggregate for the four months was 135.6 per cent larger. BUILDING PERMITS April, 1936 No. ~~tr!lIo ........................ 23 16 2 ~aumo-ni::::·.:::::·.:·.::::::::·.: 119 94 Dalru. ChristL ........... 541 :i P~':;o·:::::::.:::::::::::::::::: 84 G°lt Worth. ................... 164 117 390 sort Arthur ................... 124 n Antonio.................. 258 136 26 c til Fall . ................ 19 TotaL ............. 2.247 ~~;s~~.~:·.::·.: ::::::::::::::::: Sh ~f~~~·~r~::::::::::::::::::::: Valuation 144,471 342.107 66.663 161.005 1.314.628 117.870 584.610 70.805 1.240.206 78.847 299.951 170.238 81.269 53.020 4.675.184 April, 19J5 No. Valuation 19 $ 20,039 134 293.196 H8 46.008 41 28.185 420 301.596 64 629.491 120 566.208 126 58.920 270 503 .580 24.4 81 89 375.070 1.806 182.635 133 41 83.647 16 26.609 3.427 3.024.57 0 Pctg. change valuation over year + 620.9 + 16.7 + 44.9 +471.2 +885.9 - 81.4 5.1 + + B1.B +146.3 +222.1 - 20.0 + 28.8 7.1 + 100.0 + M.6 Mnrch, 1936 No. Vnluntlon H $ 64.111 241.230 158 H2 112.784 134.542 88 697 1.164.41 8 76 87.308 198 660.848 125 143.240 892 2.570.8!1lJ 122 135.601 270 228.780 137 190.988 44 54.938 11 12.868 2.402 6.787.481 The production and shipments of cement at Texas mills, which rose sharply in March, increased further during April. The production of cement during the month exceeded that of the prcvious 1110nth by 22.4 per cent and reached the highest level for any month since the fall of 1930. The increase over the corresponding month of 1935 was 88.8 per cent. Shipments from the mills rose 4.7 per cent between March and April, and the total for the latter month was 76.1 per cent larger ~lan in April, 1935. Production and shipments during the 1'st four months of 1936 were 60.1 per cent and 71.4, per cent, respectively, higher than in the corresponding period Cement +167.0 + 41.8 - 40.9 + 19.7 + 12.9 +214 .6 - 11.5 - 50.6 - 51.8 - 41.9 + 84.0 - 10.8 - 43.1 +312 .4 Jnn unry I to April 30 19J5 No. Vnluatlon V3iuation No. 113 $ 285.211 101 $ 80.4 28 548 606 1.839.114 2.426.843 436 458 501.517 146.493 204 341 142.190 678.187 1.904 5.627.412 1.592 1.120.529 257 249.987 179 707.150 582 2.11 2.883 391 1.073.247 398 423 259.619 816.137 1.438 8.566.628 962 1.786.962 427 288 .201 271 104.759 914 1.162.682 3.771 878.874 442.087 488 582.024 680 181 118 188.662 158.856 112 47 147.208 97.448 - 8.08 2 Pctg. change valuation over month 18.5 1936 22 .404.669 0.706 Pctg. change 9.611.664 valuadon over period + 254.6 - 24.2 + 242. 3 + 376.9 +402. 2 - 64.7 + 96.9 - 17.9 + 379.4 +175.1 + 32.3 + 81.7 + 11.0 - a3.~ +186.6 of the previous year. Due to the excess of production over shipments in April, stocks on hand at the close of the month were 12.6 per cent larger than those a month earlier. PltOOUCTION. SHIPMENTS. AND STOCKS OF PORTLAND CEMENT (Tn thou.and. of ba .... els) Percentage ch:mge over Mar ch April 1935 1936 588 +88.8 +76 . 1 +22 .4 + 4.7 636 - +12.6 April 193 6 Production lit 'rexlIs mil l. ...... Shipment. (t'om TexRs mill . ... Stock. nt end of month nt Texas mill s .............................. 66G 6.7 January 1 through Percentage April 10 . chAnge 19 36 over yenr 1.825 1.982 +60.1 +7 1.4 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System ns of MIlY 2.7. 1936) Industrial production increased in April, reflecting principally larger output of steel and of automobiles. Employment and payrolls in the durable goods industries showed advances. PRODUCTION AND EMPLOYMENT DISTRIBUTION Retail trade showed a seasonal increase in April, following a considerable advance in March, Department store sales rose by less than the usual seasonal amount, wh )'le. at variety stores and mail-order houses there were further )~l" creases. Freight-car loadings increased from March to Apn . Volume of industrial production, as measured by the Board's seasonally adjusted index, increased from 93 per COMMODITY PRICES cent of the 1923-1925 average in March to 100 per cent in April. The average rate of production at steel mills in April Wholesale prices of commodities sh~wed little change durwas 69 per cent of capacity as compared with 59 per cent ing April and declined during the early part of May, refle~r for the preceding month. At automobile factories output ing decreases in the prices of farm products and foods, wh) e amounted to 503,000 passenger cars and trucks and, except prices of other commodities as a group continued to shoW for the spring months of 1929, was larger than in any little change. previous month. In the first three weeks of May activity in both the steel and automobile industries was maintained at BANK CREDIT about the levels reported for April. Output of nondurable manufactures in April was slightly larger than in March, Excess reserves of member banks have increased slead'l )Y due chiefly to increases at cotton textile mills, meat-packing since the latter part of March and by May 2? amounted ~o establishments, and tobacco factorie.s. Activity at woolen $2,860,000,000. The growth was due in Apnl to TreasUlY and silk mills declined. Bituminous coal production showed disbursements frum accumulated balances and in May lo little change from March to April, although a considerable continued disbursements together with substantial impots decrease is usual at this season, while at anthracite mines of gold. Treasury disbursements and gold imports have a. so there was a sharp rise from the low level of March. Output been reflected in a sharp increase of deposits at report)~f of crude petroleum continued to increase. Factory employ- member banks in leading cities since the beginning of Apn . ment and payrolls were larger in the middle of April than Adjusted demand deposits at these banks increased to a neW a month earlier. Increases in the number of workers were high level and time deposits rose lo the highest fig~re ~n th)~e general in the durable goods industries, with the most marked years. Holdings of United States Government oblIgatIon: Y advances at steel mills and at plants producing machinery, the reporting banks have increased further, while hold~ngd automobiles, and building materials. There was an increase of other securities and loans to customers have rematn ed in employment at rubber tire factories, which in March had at the levels reached early in April. Loans to brokers an h been affected by a strike, while at woolen mills employment dealers in securities, which increased considerably in Marc declined. Value of construction contracts awarded, accord- and April, declined in the first half of May. The rate ing to figures of the F. W. Dodge Corporation, increased in charged on call loans with stock exchange collateral was April by somewhat more than the usual seasonal amount. raised on May 11 by New York City banks from % of one Contracts for residential building were in considerably per cent to 1 per cent and that on time loans from 1 per larger volume, and privately-financed projects other than cent to 11;4 per cent. Rates on other open-market loans have residential continued to increase. continued at low levels.
@FedFRASER