The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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MONTHLY REVIEW OF BUSINESS AND i
INDUSTRIAL CONDITIONS
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IN THE
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Volume 6
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ELEVENTH FEDERAL RESERVE DISTRICT
FEDERAL RESERVE BANK OF DALLAS
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RAMSEY. Chairman and Federal Reserve Agent
.... _ .. __..................._.• _........................... ......................__ ..
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CHAS. C. HALL, Assistant Federal Reserve Agent
_o-.. . . ._. . .. . . . . . ._
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Dallas. Texas. June
Excellent crop progress, an accelerated movement of cotton, wool and wheat, and the formation
of plans for raising a $50,000,000.00 fund for the
purpose of tiding the livestock industry over its
present emergency, stand out as the past month's
landmarks in the industrial progress of the Eleventh
Federal Reserve District. Much encouragement was
derived by cattle men and other primary producers
in this district from Governor Harding's recent addresses at Dallas, San Angelo, and San Antonio, in
which he pointed out the strength of the country's
present banking and currency position, and reiterated his belief that the most critical period of readjustment has passed.
Il
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15. 1921
in this district i now plentiful at reasonable cost.
Harvesting of a large grain crop is now providing
employment for a large portion of the idle labor in
the larger cities, and labor conditions throughout the
district generally are satisfactory and free from unusual disturbances,
AGRICULTURE
A decided improvement has marked the general
trend of agricultural conditions in Texa ince the
date of OUI' la t report. This conclusion i drawn
from reports from all parts of the state, despite the
The past month has developed no radical changes decidedly spotted condition that are a featUI'e of the
in the ordinary indices of business conditions in this
ituation. The period from May 15th to June 15th
section. Sales and collections, both in wholesale and wa characterized in orne localitie by continued
retail trade, have shown slight increases over the drouth, and in others by rains and floods that did
month of April. Public spending, as measured by much damage. Striking an average, however, the
checks charged up by banks to individuals' accounts, farming intere ts of the state as a whole have
was 10 per cent greater than in April. Bank clear- greatly benefited from weather conditions prevailings and building activities, however, showed slight ing during the Ia t thirty days. Thi i especially
decreases.
true of We t Texa where copious June rains, alternating with abundant sunshine, have made the presThe process of credit readjustment, which did not ent season an unusually propitious one for row crops,
get fully under way in this district until last October, pastures, and grains.
has continued right along throughout the spring of
1921, despite the seasonal conditions and influences
The condition of the Texas cotton crop on May
which have always heretofore resulted in a marked 25th was 71 per cent of normal, as against 60 per
credit expansion during the first six months of cent on the corresponding date a year ago. Up to
the year. Outstanding loans of the Federal Reserve June 1st approximately 80 pel' cent of the crop had
Bank of Dallas to member banks, which on Septem- been planted, of which 65 per cent was up. The
ber 27, 1920, had reached the record total of $118,- plant is, on the average, about two week late. It
000,000.00, had, on January 1, 1921, been reduced i , however, growing vigOl:ously a are ult of excelto $98,000,000.00, and on June 14th had decreased lent weather conditions prevailing since May 15th,
to $68,000,000.00, or a net reduction of $50,000,- there being an abundance of moisture in the subsoil
000.00 since the peak of last fall, The extent and with a sufficiency of surface moisture.
unusual character of this liquidation can be best
Some fear has been recently expressed for the
appreciated by reference to the chart printed on page
safety of this year's cotton crop on account of the
6 of this report, where its causes are discussed in
danger from boll weevils, a danger which, it is
detail.
believed, has been much increased by reason of the
Despite a large exodus of Mexicans from Texas to mildness of the past winter. Reports indicate that
their native land during the past spring, farm labor many cotton fields in Central and North Texas are
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
already badly infested, and it is believed that the
damage from this source will be greater than usual
this year.
Threshing of wheat is well under way throughout
the state except in the late planted area of the Panhandle. The month of May, as usual, witnessed a
deterioration in the condition of the winter wheat
crop in Texas, which on May 25th was 63 per cent
of normal. This represents a decline of nine points
from the condition figure of May 1st, due largely to
drouth. The heavy rains, however, which visited
the wheat belt during the first half of June were in
time to benefit approximately 20 per cent of the
Texas winter wheat crop, representing the late plantings in the northwestern portion of the state.
Texas winter wheat production for 1921 is estimated by the Bureau of Crop Estimates at 19,019,000
bushels. An oat production of 39,690,000 bushels is
also forecast from present indications, according to
the Bureau's calculations. The condition of the oat
crop on June 1st was 56 per cent of normal. There
is an estimated increase of 20 per cent in this year's
oat acreage. Corn is reported in splendid condition
throughout the state, particularly in the southwest.
Increased acreage and favorable weather conditions
forecast a heavy yield.
The past month was somewhat unfavorable to
fruit in this section, and the condition of the Texas
peach crop declined to 50 per cent of normal, indicating a probable production of 1,421,000 bushels.
From Southern Arizona and New Mexico come
reports of good progress in the harvesting of wheat
and oats, with yields somewhat cut down by drouth
prevailing during the latter part of May. Early
planted cotton is doing well in New Mexico and Oklahoma, where the plant is healthy and stands fairly
good. Late plantings, however, have been slow to
germinate in these states.
Summarizing, the present condition of agriculture
in the Eleventh District, generally speaking, is encouraging, the principal exceptions to the generally
favorable situation being the continued drouth in
Southern Arizona and New Mexico, and the crop
damage inflicted in certain parts of Texas by locally
excessive rains.
April exports of cotton through the
port of Galveston exceeded those of
March by 20 per cent, and were in
turn exceeded by those of May by 50 per cent. The
steady expansion of the cotton movement to Europe
during the past few months has been due principally
to the increased takings of Germany. Steamship
agents at Galveston report that their cotton bookings
to Bremen for the months of June and July are
heavier than they have been at this season of the
year since before the war.
Cotton
Movements
The season's export movement through Galveston
since August 1, 1920, has exceeded that of the previous season by 360,000 bales, or approximately 17
per cent. While the export cotton movement from
all United States ports continues to run somewhat
behind the movement of last season, there was an
increase of 100,000 bales in the exports from all
United States ports last month as compared with
the previous month, indicating a revival of European demand.
Below will be found detailed statistics of cotton
movements for the Month of May:
COTTON MOVEMENTS THROUGH THE PORT OF
GALVESTON
May
Tbill
Last
Gl'OSS Receipts.......
EJi.llorts....._.............
Stocks May 31st.....
1921
I
~;~:~~~
1D20
on
on
55,611 2,779,889 2,136,100
84,009 2,506, 73 2,142,511
... 382,102 196,258
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~~a_
GALVESTON STOOK STATEMENT
May
1921
For Great Britain ................................ .
For France ............................................. .
For other foreign ports ...................... ..
For coastwise ports .............................. ..
In compresses......................................... .
Total. ............... ................................. .
May
l!l20
30,634
6,573
1,849
49,212
30,205
3,000
14,200
297,407 145,280
382,102
196,258
SEASON'S RECEIPTS, EXPORTS AND STOCKS AT
ALL UNITED STATES PORTS
This
Season
Receipts to May 31sL ...........................
Exports: Great Britain ........................
France ...............................
ContinenL ........... . ...... . . .....
Japan-China .........................
Mexico ....................................
Total foreign exports ..........
Stocks at all U. S.}Jorts ......
~n
Last
5,831,975 5,784,716
1,511,191 2,876,871
494,218 530,350
2,005,247 1,672,226
421,529 800,316
24,017
512
4,456,202 5,8 0,275
1,570,601 1,025,390
Wheat exports through the port of
Galveston during the month of May
amounted to 7,846,388 bushels,
which reflects an increase of 2,180,140 bushels over
April, 1921, and an increase of 1,170,458 bushels over
May, 1920.
Grain
Movements.
Reports of inspectors at the five large grain centers of the district show the usual seasonal increase
in grain receipts last month, as will be noted from
the comparative table appearing below:
COMPARATVE GRAIN RECEIPTS
May
Wheat......... _.... _..... _. __ .. _.... __ ....... ..
orn... ........................... _..... _................... .
Oats...... ..................................... _.............
(Cars)
5,629
271
113
April
(Cars)
5,176
114
77
3
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
LIVESTOCK
Condition
of Ranges.
June rains replenished stock water
and stimulated a splendid growth
of grass throughout most of the
range country of this district. High temperatures
and continued dry weather had endangered ranges
and livestock throughout most of the west and
northwest section of Texas, and conditions had become particularly critical in the Panhandle. Muchneeded rains, however, visited the entire state of
Texas during the early part of June, with the exception of a few localities in Central Texas and the
southwestern portion of the state, and as a result
of these rains ranges are in fine condition, with
grazing greatly improved and cattle rapidly taking
on weight.
The continued drouth in Southern Arizona and the
southern tier of counties of New Mexico, however,
has caused heavy losses of livestock from starvation,
and necessitated much feeding. In New Mexico the
drouth was particularly severe in Grant, Hidalgo,
Dona Ana, and Otero counties, although recent rains
in that section have given grass a new start and
improved the condition of livestock.
The calf crop in New Mexico is reported to be 70
per cent of the cows, and the lamb crop 75 per cent
of the ewes, which is somewhat above the average
condition for New Mexico at this season of the year.
In Texas conditions are favorable for the lamb
and calf crops.
On the whole, with the exception of southern
Arizona, where cattle losses continued and conditions are still critical, sheepmen and cattle raisers
are optimistic over the outlook for the future as
reflected by present range conditions.
amounted to 75 cents; bulls were down 50 to 75
cents; hogs lost only 15 cents; while the heaviest
depreciation was sustained by sheep and lambs,
which were sold at an extreme decline of $2.00.
There was not sufficient trade in stocker cattle to
make a really quotable market. At the best time
of the month, however, this class of steers and cows
were $1.00 below the top level of prices reached in
April.
Calves at first encountered a fairly broad demand,
but under an avalanche of receipts which caused
the month's supply to exceed all May records for
the past eighteen years, the market was badly demoralized, the month closing at a loss of $2.00 per
hundred by comparison with the close of April.
FORT WORTH LIVESTOCK RECEIPTS
May
1921
LO-JS or
Gain
April
1921
May
1920
Loss or
Gain
Cattle ________ 56,641 43,217 G 13,424 103,724 L 47,083
Calves ______ 21,551 11,082 G 10,469 17,494 G 4,057
Hogs __________ 30,257 34,384 L 4,127 37,470 L 7,213
Sheep ________ 88,331 44,014 G 44,317 88,615 L
284
COMPARATIVE TOP LIVESTOCK PRICES
May, l U':~ A prlJ . ~ 9~! May, 19~O
Beef steers __________________________ $
Stocker steers _______________________
Butcher cows _________________________
Soocker cows _________________________
Calves _____________________________ ______ ~ _
Hogs _______________________________________ _
Sheep ______________________________________
Lambs ____________________________________
9_60 $
6.25
6.65
4.50
8.25
8.30
6.26
10.00
8.40 $
7.25
6.50
5.50
9.75
9.10
6.00
10.25
11.25
10.76
10.50
9.00
13.75
14.75
11.60
16.60
LUMBER
Livestock
Movements
and Prices.
As was the case during the preceding month of April, last month's
movement of cattle, hogs, and sheep
to southwestern markets was far
below the usual seasonal volume, although receipts
of cattle and sheep were the most liberal of any
month this year. The calf supply was just twice as
large as that of the previous month, and showed a
substantial margin over receipts of May, 1920.
More irregularity than usual featured the course
of price movements at the Fort Worth market during the month of May. During the first three weeks
of the month outside buyers gave the packers considerable competition, and, as a result, prices showed
marked strength in all divisions until the last week
in the month, when the support from order buyers
fell away, and the local purchasers seized the opportunity to force prices to new low levels. While beef
steers reached a higher maximum in May than they
did in April, nevertheless the month closed with
values about $1.00 lower than the April close. The
net loss for the month on cows of good quality
Further improvement in the demand for lumber
is indicated by statistics for the month of May submitted by 32 southern pine mills in this district, as
reproduced below. These figures show that the mills
are shipping out a larger volume of lumber than they
are cutting. It is evident, therefore, that the reduction in mill stocks, which was noted in our last report, has continued during the past month.
At the close of May the reporting mills had increased their output to a point only 27 per cent
below normal. This is quite an improvement over
the April record, which was 39 per cent below normal.
The increased demand, which is partly seasonal,
has resulted in a resumption of activities by mills
which had entirely closed down, and an increased
activity by those which were operating on a part
time basis. It has also been followed by slight advances in the price of some items of lumber. No
substantial change, however, in the price situation
has been noted during the past month.
4
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
MAY PINE MILL STATISTICS
Number of reporting mills..............
32
Average weekly production ............ 13,468,597 ft.
Average weekly shipment s ............ 14,405,931 ft.
Average weekly orders received .... 13,993,074 ft.
Unfilled orders May 27th ................ 39,854,390 ft.
Average weekly normal production .............................................. 18,575,022 ft.
Production below shipments..........
937,334 ft.
Actual production below normal.... 5,106,425 ft.
Orders below normal production.... 4,581,948 ft.
of last year by 4,116,560 barrels, as shown by the
following comparative figures:
l\l~O
January ...................................... ........
February............ .................................
March................. .................... .............
ApriL ..................................................
May ...................... ..............................
= 7%
= 27%
= 25%
1921
(barrels)
(barrels)
10,934,061
10,473,094
11,132,024
11,024,345
11,714,413
12,746,315
11,290,813
12,219,409
11,587,470
11,550,490
Tota L. .......................................... 55,277,937 59,394,497
Among the developments of prime importance in
l'ETROLEUM
the drilling results of last month was the bringing
Eleventh District oil production for the month of in of several wells near the discovery well in the new
May aggregated 11,550,490 barrels. Of this amount Louisiana pool near Haynesville. Excellent proTexas wells produced 9,448,099 barrels of oil, having ' ducers were completed on two sides of the first test,
a market value of $12,475,000.00. Compared with which seems to definitely prove the existence of an
oil production in Texas during May of last year the important pool, whose dimensions have not yet been
past month's production represents a decrease of fully defined. The further development of this field
$14,000,000.00 in value, against an increase of is expected to be slow, as the acreage is closely held
by a few companies who can afford to develop their
1,500,000 barrels in volume.
holdings at leisure and avoid the wasteful and danRecords for the months of May, 1920, and May,
1921, also bring out an interesting comparison be- gerous practice of excessive drilling which in some
tween the respective performances of Texas and instances occurs in newly discovered fields where inNorth Louisiana fields. The figures show that dividual holdings are relatively small.
monthly production in Texas, which a year ago was
Notwithstanding the fact that the district about
around 7,000,000 barrels, has increased to 9,000,000 held its own in rate of production during the month
barrels, while the North Louisiana flow has shown a of May, drilling results for the month reflect the
decline from 3,000,000 to 2,000,000 barrels.
heaviest curtailment of operations of any month
Thus far the District's oil production for the year during the present year, the total number of pro1921, despite a heavy decline in price and demand, ducers being only 278, which compares with the
has exceeded its production for the first five months April record of 359 and the March total of 395.
OIL PRODUCTION
Aprn
lJla:y
1ncrease or Decre~e
Total
Daily Avg.
Field
North Texas__.....__ ................. _
..................................
Central-West Texas ..................................................
'l'exas CoastaL ......... _................... _..........................
2,207,022
3,847,689
3,393,388
71.194
124,119
109,464
2,239,530
3,920,640
3,251,850
74,651 Dec. 32,508 Dec.
130,688 Dec. 72,951 Dec.
108,395 Inc. 141,538 Dec.
3,457
6,569
1,069
Totals, Tex8s..............................................................
North Louisiana........................................................
9,448,099
2,102,391
304,777
67,819
9,412,020
2,175,450
313,734 Inc. 36,079 Dec.
72,515 Dec. 73,059 Dec.
8,957
4,696
Totals, 11th Dist l'ict .................. _ ... _ ...................
11,550,490
372.696
11,587,470
Total
Daily Avg.
Total
DaIly Avg.
386.249 Dec. 36,980 Dec. 13,663
MAY DRILLI NG RESl,ILTS
Field
Central-West Texas ............................................... ....................... _ .................
NOlth Texas .................... .................... _............................................................. .
Texas CO'a stal _..... _._ ...... _.. _... _ ............................. _._ ....... ___ .................. .
Texas Wildca ................... _._ ........... _.... _... _ .................................................. .
Completions
Producers
InitiAl
Production
Failures
100
87
41
17
78
58
35
5
28
29
6
12
25,336
6,960
33,288
1,670
Totals, Texas ..................................................................................................... ..
Nor th Louisiana ........ _ ........_ ................................ _. __ ._ .. _. __ ._ ...... _.............
251
27
176
16
75
67,254
8,320
May Totals, District................ ............ _............ _.......... _... _..... _... _ ..... ~_ ..... .
April Totals, District.. .................... ........... _ ........................................._ ....... .
278
359
192
.256
10<
11
86
75,574
97,176
CRUDE OL PRICES
Texn
Cor sicana. light ................................. _............_........ __ ... $1.00
Oorsican heavy .. _..........................................__ ............... .50
Texas Coastal fields ... _.. _.............. _ ... _ .... _... _ ..... _... . 0
All other Texas fields.........
.. .... _... __ .................... 1.25
Louisiana (!l8 g ra"ity and above)
Caddo ._ .._._. ___ ......._._ .. _._ .._ ............ _ ..._.. __ .__ .$1.50
Homer ..................__ ................... _ ........................ _
....... 1.25
Bull Bayou ................... _..... _ ........ _ ... _...................... _... 1.15
De Soto............. _........ _ _ ..... _._._ ..... __ ........ _....._. 1.40
(Oil Statistics compiled by The Oil Weekly, Houswn, Texas)
5
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
TRADE
Wholesale
Trade.
The downward movement of wholesale prices in this district was
sharply arrested during the past
month, according to figures furnished by our reporting firms. The preceding month had witnessed
sweeping revisions in all reporting lines, especially
drugs, but for the month of May prices remained
stationary in drugs, hardware, furniture, and farm
implements, showing only nominal decreases in dry
goods and groceries.
The month of May developed a more active demand for hardware, dry goods, far.m implements,
and groceries in wholesale channels, there being a
slight falling off in sales of drugs and furniture.
The volume of stocks in wholesalers' hands at the
close of the month, though valued at approximately
40 per cent less on the present scale of prices than
was reflected by inventories a year ago, was physically about equal to stocks carried at this season
of last year, with the exception of the furniture
line, in which, despite a price decline of 32 per cent,
there has been an increase of 40 per cent in stocks
on hand, measured by values.
Dry goods dealers report improved demand for
staple goods, and the appearance of a cautious inquiry for fall merchandise. Immediate wants of
retailers, however, continue to control trade. Prices
are firm with a tendency to stiffen in some lines.
Although retailers assert that their trade is somewhat dull just now, wholesale collections during the
past month have been coming in at an excellent
rate, according to reports of representative houses.
Wholesale drug houses state that the past month's
buying demand and price tendency has been steady,
and assert that prices of most drug items (which
they ay had never reached the relatively high levels
of other lines) have now been reduced to a normal
basis, being about in line with the prewar level, and
are showing steady tendencies. Comparatively favorable reports have been received by the wholesalers from their retail customers, and collections
are reported as satisfactory. The latter condition
is partly due to the strict terms of sale which prevail
in this line, and to the extremely careful credit policy
which it pursues and urges its retailers to pursue.
The general outlook in the dl'Ug trade is described
by our corre pondents as very good.
Sales of hardware and farm implements have been,
until recently extremely slow, due respectively to the
lull in building operations and the traitened circumstances of farmers. Hardware prices have shown a
slow and steady decline, being now about 20 per
cent below May, 1920, figures. Retailers are said
to be well stocked at this time, and only providing
for day-to-day needs. Tbeir business however, according to whole ale dealers, ha been running only
slightly below the olume of 1920 and considerably
above the business done in 1919.
CONDITION OF WHOLESALE TRADE DURING MAY, 1921
Percentage of Increase or Decrease in
NET SALES
NET SALES
Jan 1st to date. comSTOCKS
PRICES
May. 1921. compllrC!d
pared with same
May. 1921. cornPll1'ed May. 1921. compared
with
period. 1920
with
with
May
April
May
April
May
April
1920
1921
1920
1921
1020
11)21
Groceries ................................................................. .
Drugs ....................................................................... .
Dry Goods ............................................................... .
Hardware................................................................ .
Farm Implements ................................................ .
Furniture ................................................................ .
-33.8
- 29.7
- 23.3
-45.4
-83.0
-38.1
Reports received from nineteen
Texas department stores for the
month of May show an increase of
6 per cent in net sales for that month as compared
with the previous month.
While sales for May, 1921, were 17 per cent below
those of May, 1920, the shrinkage is more than accounted for by the lower scale of prices now prevailing. In fact those stores which keep a record of the
number of their transactions say that the volume of
transactions has been greater this spring than during the spring of 1920. A significant change in the
present buying demands of department store customers as compared with a year ago is the marked
increase in sales of piece goods, particularly ginghams and other cottons, and a corresponding decrease in the demand for ready-to-wear and silks.
Retail
Trade.
+ .6
- 6.2
+2.2
+7.3
+6.3
-3.3
-40.5
-28.6
-48.2
-41.8
-83.4
-49.9
-29.7
-39.2
-39.0
-11.8
- 7.9
.9
-35.2
-
1.8
-50.0
-
2.1
-46.2
+ 40.3
-
-lLS
3.1
7.2
-32.5
None
None
This turning to more economical lines of merchandise, and a marked increase in the interest aroused
by genuine bargain sales, constitute the two principal characteristics of the present buying movement
as contrasted with that of a year ago, according to
statements made by our reporting firms.
Sales for the first five months of the yeal', measured by dollar total. have been 13 per cent below
the total for the conesponding period last year, but
were well above the record for the fir t five months
of 1919. according to information obtained from
th.ese stores. There has been but little recent fluctuation in the volume of stock goods, which by comparison with those carried last year are now about
20 per cent less in value, though this is largely
accounted for by price revisions that have occurred
since May, 1920.
,
I
6
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
BUSINESS OF DEPARTMENT STORES
Net Sales-
Increase
or Decrease
May, 1921, compared with May, 1920......... _.... _ ................................:._. __ ................. _..................._._... __ .... _....... -17,4%
May, 1921, compared with April, 192L._............................ _._ .... _.. _... _......... _._....................................................... + 6,1 %
Net SalesJanu8.l'y 1st to date compared wit h same period 1920..........__ ......................................................... _ _... _...... -13.0%
Stocks ali end of May, 1921-
g~~::~ :t~ :~:s~~n:~d ~~21-;:ii:·1921:~::::::::~:::::::::·::::·::::~:~:.~:=:::~~:~:::::~::::::::::=::::::::=::::::::~::~:~:::: =2~:~~
Ratio of stocks to sales for first 5 months of 1921.. ........ ................. .......................... ............. .........................................
::~~~ ~~ ~!~tac~1{~c1i~~~e~! ~c~~~~ise~~~er::bl~a~~~··~~·d··~~~t~·t~;~·d·i~g··Ni~·; ·1~t. :·19~1::·.·.·.·...·.· ·.:·~...........:·..~...~:~~:·~····::::'.~
FINANCIAL
Operations of
A further reduction of$3,696,553.61
Federal Reserve in the volume of our outstanding
Bank.
loan to member banks, which was
accomplished during the past
month, brought the total down to $69,707332.74 on
May 31st, distributed as follows:
Member bank collateral notes (secured by
government obligations) ......................$12,815,454.89
All other loans to member banks, including rediscounts ........................................ 5G,720,971.15
Open market purchases of bankers' ac170,906.70
ceptances ..................................................
Total outstanding loans to member banks $69,707,332.74
In contrast with this reduction of bank loans durthe month just past, there was, during the corresponding month last year, a net expansion amount-
407.5%
4i:t;:
ing to $10,600,000.00. This contrast, which in fact
has been in evidence for several months, is graphically depicted in the following chart, showing the
comparative movements of our accommodations to
member banks in 1920 and 1921.
.
The curve representing last year's loans to member banks may be said to closely approximate-in
kind if not in degree-the normal movements of
credit in this section over a twelve-month period.
The unusual reduction of member banks' indebtedness during the first five months of the current year
-the season when bank loans in this section normally undergo a heavy expansion-is largely attributable to (1) the sale of government securities by
member banks, (2) a stricter credit policy on their
part, (3) more economical cultural methods used this
year by Southwestern farmers, and (4) reduced com- _
modity prices.
,.,
OUTSTANDING LOANS* OF DALLAS FEDERAL RESERVE BANK TO ELEVENTH DISTRICT BANKS AT END OF
EACH MONTH, 1920 AND 1921
MIktiI ONS ~J.:::AN~~E'EB~~....;Y,~\fA~R~....::APR~~~MA22!:Y-+....!:JUN~+~JUL~-I-~AU~G~~SE~P~.....:O:::.:CT~-rNO=V-+....;l:D~E::::.C_1
DO~A~~--4---~--~----~--~--_+--~~--+-~~~~~,~----r-~
//
...... 100.
IIO~--~-----+----~----+_----~--_4----~----~~--+---~I~'~-+----~
,
",
IOS~--4_---+----~--4---_+----~--~~~~----+----r--~--~
,,
I~"
~,
IOO~--~-----4-----+----~----~----4---~~~~---+----~----4-----+-~~
.......
r.f ~
flo
~~
I
~~~~
~
~~--~---+~,~~+'~,~~/~·~~~---4---+---+--~
"/
' ... 11
r~~--~__~~~~+---~--_+--~~--+---~---+----r---~--~
~
.......... ~ J
7S~--4---_+----~~~---+----~--~--_+----~--~---+--~
70~--+---~---+~~7'~~~~~--+_--~---+--~----r---+---4
t"'-,sr---+---~---~~-4----~--+_--~---+--~----r---+---~
"
'
IJ
,6~--~--_+--_~A--~~--4_--_+--~r---~--_+--~r_--~--~
~s~--~--_+~,~~~~~_+--~~--4_--_+--~r_--~---+--~r_--4----;
_
1.# .,
~O'~--_4~~~~----~----+_--~~--_4----~----~----r---~-----r----~
tooII,J
* Including
paper rediscounted with other Federal reserve banks.
,
7
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
_
Our outstanding Federal reserve notes on May
.31st amounted to $52,762,595.00, which was $5,364,050.00 less than the total outstanding on April 30th.
Member bank reserve deposits also showed a decrease of $2,670,172.14, the amount on May 31st
being $42,762,219.98.
Acceptance
Market.
It is estimated that on May 31st the
total amount of outstanding acceptances, created in this district, was
$1,491,000.00, of which acceptances aggregating
$1,033,000.00 were drawn against domestic shipments and storage of goods, the remainder being
against import and export transactions, the average
maturity period for the outstanding paper being estimated at sixty days.
The total amount of acceptances held by the Federal Reserve Bank of Dallas on May 31st was only
$170,906.70, all of which were based on export transactions. $150,000.00 of our holdings were executed
by Eleventh District banks.
Member banks in reserve cities of
Condition of
the district showed no important
Selected
Member Banks. changes in their condition at the
close of May, compared with the
close of the preceding month. The ratio of loans to
deposits remained unchanged at 112 per cent. Borrowings fmm the Dallas Federal Re erve Bank were
reduced from $22,000,000.00 to $19,000,000.00, being
less than one-half the amolmt of their borrowings a
year ago.
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
April 27. 1921
May 25. 11121
52
52
Number of reporting banks ..............................................................................
$ 37,086,000
U. S. Securities owned ...................................................................................... . $ 35,803,000
6,570,000
Loans secured by U. S. War Obligations ...................................................... .
6,326,000
214,403,000
All other loans and investments ................................................................... ..
215,613,000
197,846,000
Net demand deposits ........................................................................................ .
197,714,000
21,998,000
Reserve with Federal Reserve Bank. .......................................................... .
22,655,000
22,485,000
Bills Payable with Federal Reserve Bank. ................................................ .
19,515,000
112 %
Percentage of loans to deposits ................... _.. _................................... _......... .
112 %
Bank Clearings
and Charges to
_ Depositors'
.Accounts.
The volume of public spending as
measured by individual debits to
depositors' accounts reported by
banks in the thirteen larger centers
May 211. 1920
46
$ 61,394,000
10,251,000
231,867,000
230,948,000
25,805,000
61,341,000
105%
of the district increased approximately 10 per cent
during the month of May. Bank clearings, however,
reported by eleven cities, showed a decrease for the
month of 2.9 per cent.
BANK CLEARINGS
May. 1921
April. 1921
Austin ................. _ $ 5,126,389 $ 6,272,945
4,347,74~
Beaumont.
4,229,243
DaJlas. .............. _.
96,395,197 103,296,148
El Paso ................
22,332,323
22,654,434
Fort Wor th ... _....
47,562,626
46,503,141
25,090,120
Galveston .............
28,483,108
Houston ...............
90,772,284
87,913,986
San Antollio .......
29,384,796
28,908,003
Shreveport.. .........
16,021,128
16,576,059
Waco................... _
8,634,301
8,753,746
Wichita Falls ....
10,677,000
9,340,122
Tom II!... ............
$354,363,734 $364,910,060
Ine. or
Dec.
-18.3
- 2.7
- 6.7
-1.4
- 2.2
+ 13.5
- 8.1
+ 1.6
- 3.3
- 1.4
-12.5
-
May. 1920
$ 6,032,441
6,326,931
146,318,577
29,877,553
80,562,628
30,688,889
110,305,085
33,473,413
23,446,079
11,464,886
27,822,205
2.9 $506,318.687
11)e. or
D o.
Since Jan. 1st. 1921 Since Jan. 1st, 1920
Inc. or
Dee.
38,592,512
33,760,660
847,971,881
146,841,340
430,938,515
146,590,421
596,481,542
174,049,714
118,009,620
73,898,302
117,255,016
-23.8
-26.4
-35.5
-19.7
-39.2
- 0.1
-17.7
-14.4
-27.3
-30.3
-54.3
-30.0 $ 1,968,529,884 $ 2,724,389,523
-27.7
29,397,172 $
24, 44,098
547,335,252
117,909,332
261,987,938
156,365,034
490,879,037
149,051,151
85,730,490
51,500,925
53,529,455
-16.0 $
-83.1
-34.1
- 25.S
-42.3
- 7.2
- 20.3
- 12.2
-31.7
-24.7
- 66.4
CHARGES TO DEPOSITORS' ACCOUNTS
wEEK ENDINGS
Albuquerque .............................................................................................. . $
Austin ............ ................................................................... ........................ ..
Beaumont ............................................................................ ...................... .
Dallas ................ ......................................................................................... .
El Paso ..................... .............................................................. .................... ..
Fort Worth ................................................................. ............................. .. .
Galveston ................ .......... ................ .... .................................................... .
Houston ...................................................................................................... .
San Antonio .................... ........................................... _.............................. .
Shreveport ........................................... _.................................................... .
Texarkana .................................................................................................. .
Tucson ... ............ ........... ............................................... .............................. .
Waco ......................................................................... ..................................
Totals, Eleventh District ................................................................. .. $
Totals, all reporting cities in United States ............................... .. $
lolay 2G. 1921
April 27. 1921
125,420,000
6,968,829,000
May 26, 1920
990000 $
2,007,000
2,690,000
29,576,000
6,708,000
15,530,000
17, 92,000
22,109,000
5,792,000
5,902,000
1,125,000
1,167,000
3048,000
1,654,000
3,079,000
4.467,000
37,704,000
11,915,000
24,868,000
8,604,000
33,430,000
8,409,000
11,755,000
2,040,000
1,814,000
3,650,000
114,531,000
$
1 6,969,424.,000 $
153,389,000
9,078,644,000
1,505,000 $
2,969,000
2,841,000
29,726,000
8,644,000
18,940,000
17,776,000
23,248,000
6,516,000
6,875,000
1,281,000
1,916,000
3,183,000
8
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
Discount
The table of May discount rates reproduced below, showing the
"high," "low," and "customary"
charges in effect at the banks of six cities, disclosed
a tendency toward easier rates in bank channels, the number of increases, as compared with the April . . ,
rates, being exceeded by the number of decreases.
Rates.
Prime Com mercial
Paper :
Customru's' 30 t o
90 days ..............
Cust omers' 4 to 6
m on ths
Open market 30 to
90 days .. _..........
Op n market 4 bo
6 months .........._
Interbank loans ......_
Collateral loans, demand .......... _._ .......
Collateral loan , 3
months .- ... .... ...
Collateral loan , 3 to
6 months ................
Cattle loans ..............
Loant secured by
w a reh o use receipts, Bs/L., etc.
Loan
secw'ed by
Government ecurities ....._.__..........
~-~
-
H
Dallas
L
C
MAY .DISCOUNT RATES
Ft. Worth
Houston
EI Paso
L
H
L
C H I L I C
0 H
San AntonIo
L
C
H
H
Waco
L
0
8
7
8
10
7
8
7
7
7
8
6
7
8
6
n
8
8
8
8
7
8
10
8
8
7
7
7
7~
6l
7
8
6
n
8
7~
8
8
8
8
8
8
8
..
..
..
..
..
..
..
..
..
8
8
8
8
7
8
6
8
8
8
8
7
8
8
..
..
6
7
7
..
6
7
..
8
..
8
..
..
6~
6
7
8
7
8'
7
8
7
8
6~
n
10
8
8
8
6
7
8
6
7
8
6
7
8
8
8
8
6
7
10
8
8
8
6
7
8
6
7
8
6
7
8
8
8
8
8
6!
7
7
8
10
10
8
8
8
9
8
10
6
8
7
9
8
8
6
7
7
n
8
10
6
6
7
n
8
8
8
8
8
8
8
7
n
10
8
8
..
-
..
8
7
7
8
6
n
8
8
8
8
6~
n
10
6
8
8
I 6 I 8
8
6
7
8
6
7
8
6
I
FAILURES
From the figures of R. G. Dun & Company reproduced below it will be seen that commercial failures
for the Eleventh District have been gradually de-
I
I
8
creasing, both in number and magnitude, since the
first of the year. The business mortality rate is,
however, still far above that of 1920, as is the case
in other sections of the country.
e
COMMERCIAL FAILURES
1920
102 1
J anuary ....................................................................................._........................
February .................................. _.......... __ ........_................................................ .
March ...._..................................................................................... _____ ............ .
April ............................ _....... ~ .......................................... ........................_ .... .
May ..............___ ..................... _......................................... ............................... .
Liabilities
Number
155 $ 3,359,871
2,117,068
187
2,702,583
98
2,905,847
1,851,774
33 $ 284,096
1,830,522
31
19
203,445
100,582
16
15
168,165
580 $12,937,143
114 $ 2,586,810
~~
Total _..... _ .....__ .................. _............................................ _ .................... .
BUILDING
Construction contracts awarded in May, 1921, ex..
ceeded those of the corresponding month last year
Liabilities
N um ber
by 6 per cent, but showed a decrease both in number
and valuation by comparison with the month of
April, 1921.
BUILDING PERMITS
lIIlA),. 102 1
Austin ............................................................................................. .
Beaumont ....................................................................................... .
Dallas .............................................................................................. .
EI Paso ..................... .. .................................................................... .
Fort Worth ..................................................................................... .
Galveston ......................................................................................... .
Houston ............................................................................... .......... .. .
Shreveport .............................................. ..........................................
San Antonio .. ~ .........................._........._
.........................._ ............ .
Total .....__ .............. _ ......................................... __ .......... _... .
No.
Valuation
4B $
84,435
143
144,998
396
1,329,661
153
408,098
114
326,331
385
115,114
657
846,341
280
386,750
302
549,050
- -- - - - - -I
2,473 $ 4,190,778
No.
MDY. 1020
VahUllion
12 $
43,110
76
75,252
210
969,255
102
302,550
241
1,085,748
291
51,267
210
611,216
195
:«i8,360
176
346,900
--------I
1,513 $ 3,953,658
Inc. or Dec.
+ 95.9
92.7
37.2
+ 34.9
- 70.0
+1.24.5
+ 38.5
- 17.4
58.3
+
+
+
+
6.0
e
@FedFRASER