The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
:11111111111,.111111111111111111111,1111111,1111111,11111111111111111111111111111 •• 1'1.1.1111111111111111.111111111111"'111'1111111111111'111111"11"'1'1"""11 ••• 1'1"1111111111,11111,,111111'111'111111.11111'.11.1111'11.,11111111111111111111111111 11
:: t .. III'IU .... IIIII.I.IIIIIIIU.IIIIII'IIIIUIIIlIlI.I.11111111I1I1I1I111111111 ...... 1111 .. 111111 .. 1.. 1.. 1 ...... 111'1.111 ...... 11111111 .... 11111111111111 .. "111111111111111111111111'1""111'11111'1111111111"1111111111111111'111111111111 """III~
MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
II
:
c.
C. WALSH.
CHAS. C. HALL-W. J. EVANS,
Ch."••n .n' ••••~. RH'"' ...n;c.n'PIl.d F.b,"", 15, 1927)
Ass istnnt Federnl Reserve All"cnts
1I"11 .. 1.11I .. 11 ...... IIIIIIIIIIIIIIII.,IIIIIII.IIIIIIIIIIIIII.,IIIUIII.1111111111111111.1111111"111111111111111111111111111111'''"111111 •• 1111111111111111111111.111"111.1.11111111111111111111111111,.111"11111111.110111111111111111111111111111'
;111111111111111111""11.1111111,,"111111111111111.111111111111111"""11111.1 ...... 11".11.1.'.1.1 •• " .. 1111111 ..... 11111 .. 1111111 ... 11".1'111III'fllllllll'II"IIIIII'IIIIIIIIIIII"IIIIIIII'11I111111111.111111111111, ••• 111111111111111111111111'11'1
Volume 12, No.1
This
copy relensedfor publi.
cation in afternoon papers
Dallas, Texas, March 1,1927
March 1
DISTRICT SUMMARY
~'''IIII''II'''I''IIIII'IIIIIIIIIIII''IIIIIIIII''I'''II'"IIIIIIIIIIII 111.1.11111111 .. ""11111111111111111111111111111111111111.11111111111111111I1.11I11.III .. flllI,.I.I.,I,IIII'lll f ll"llIflflll f llll'IIIII111111111111. 1 11111,111111111111111111'1111 [!)
l: _~ Depnrtme
'il~.~~U~!?:'
:~.
,,:,::;;;;.
Bank debitsnt store
to individunl
nccounts
(at................................
cities)..................................................
. .............G~';.E
. .............................
sales
.
...
.
...
.
.................
.
..............
.
..
.
...
.
......
.
......
.
..............
_.............
..
.
.
.
....
ReservoBank loans to membe,' banks at end of month ............................................ .......... ...................... . .
.
16
Reserve Bank ratio at end of month................. . .................. ..... . . ............ . . ............. ..................... ...............
§
g~£~~~~l~r~\\~::u\~ra~i~f;;~~·
~::~~~:. . .~~:. ..~.:::::::::::::
: : : :.: : : : .: :...:::::::::::::::::::
::~:::.:..:.:.:~::::~~
production (barrels)......... ......~.·..:~~:. ........
......... . ..:::::::::::::
.. ......:....::::::::::
.... ...:.::::.................
. . ... . ...... ......
.......
Oil
: LumuCl' OI·de,·S at pine mills (per cent of nO"mlll production).. . ... ... ... ........ ............ ........... .. .... ... . .
e
$
$
..=::;
8.768.169
$
69.8 %
4,772,409
67.9 %
::::::m : :::~~:m
21,668,2 10
87 %
22,132,276
60 %
D
ec.'n<
D
ec.
Dec.
Inc.
~~~:ec.
D
Inc.
':~~.!i I
~~:~~
27
2.1 %
points
'III'IIIIIII'I'I"'II"IIIIIIIIIII'"IIIIII'"I"11111111111,11111111111111111111111111111111.11111111 111111111 1.1111111.111111111111,1111'"1111111111111'111'.,11'1111111'.1'11111'1'1'1111111111111111111111111,11111111,. 1 111.111111'1"'111111.,1111118
The continuance of the upward trend in the price of cot·
ton which began early in December was an important de~elopment during the past thirty day. An in:portant fac.tor
III the situation has been the heavy domestIc and foreIgn
demand for cotton. Exports during December and January
exceeded those of the same two months a year ago by 51 per
cent and domestic consumption was 5 per cent greater. For
the first six months of the current season the combined ex·
ports and domestic consumption was 17 per cent larger than
during the same period of the previous season.
Weather conditions have seriously retarded farm work
during the past thirty days and farmers genera lly have made
very slow progress during the winter with the preparation
of the soil for planting this year's crops. Yet the ·abundance
of rainfall has left an excellent season in the ground. Fear
is being expressed in certain quarters lest the deep subsoil
l110isture is la ying the foundation for another heavy per
a.ere yield Df cotton ~hat might bring about a serious situa·
hon should the rise in price of the staple deter farmers from
Carrying out the contemplated reduction in acreage. Small
grains have made rapid growth. The excellent conditiDn
of ranges and livestock together with the improvement in
the market prices Df the latter, places this indu stry in the
lUost advantageous pDsition experienced in several years.
Financial conditions generall yare sound even though
there are some weak spots in the situation occasioned by
Poor cDllections. While the district's cDmmercial failure
rate rose sharply during January, both the number Df defaults and the amDunt of indebtedness involved reaching
the highest level in more than twO' years, it was due in part
to the strnin incident to making annual settlements. Re·
ports indicate that merchants are making a determined
effDrt to put their financial house in order by reducing mer.
chandise stocks and inaugurating mDre stringent credit
policies. The demand for bank credit has been relatively
light. Federal Reserve Bank loans to member banks declined from $6,077,809 on January 15 to $3,191,716 on
February 15 and on the latter date they were $2,027,420
less than Dn the same date in 1926. The deposits of memo
bel' banks, contrary to the usual trend, reflected a slight increase in January and the reserves Df these banks with the
Federal Reserve Bank have been steadily increasing.
While the distribution of merchandise reAected largely the
effects of seasonal influences, it hould be noted that the
volume was smaller than a year ago. Wh olesale trade increased substantially as compared to the previous month,
but was considerably less than a year ago. Department
store sales were 52 per cent less than the large Decemb er
volume and were 5 per cent less than in January a year ago.
Debits to individual accounts evidenced the usual decline
from December and were slightly less than a year ago.
Construction activity as measured b y the valuation of
permits issued at principal cities, whil e slightly greater
than in the previous month, was 20 per cent less than in
January last year. The production and shipments of
cement reflected a gain as compared to both the previous
month and the same month a year ago. Increased activity
was noted at the district's pine mills as compared to' Decem·
bel' but operations were on a smaller scale than in January,
1926.
A further reduction in the volume of employment was
nDticeable during January due to the curtailed a~tivitif'S lit
MONTHLY BUSINESS REVIEW
2
the majority of the district's principal industries. A sur·
plus of both skilled and unskilled laborers exists in many
sections of the district, and there is a pronounced surplus
of common laborers in some sections.
CROP CONDITIONS
Farmers have progressed slowly with plowing operations.
Due to the shortage of farm labor, the urgency of harvesting
1926 crops, and the adverse weather particularly in Decem·
bel', the farmers had been unable to do much plowing prior
to the opening of the new year. Whi le this work progressed
rapidly during the first half of January, the intermittent
rains since that time have greatly retarded farm operations.
However, with the reappearanc.e of fair weather the farmers
should make rapid progress with farm work. The good sea·
son in the ground which obtains in practically every section
of the district augurs well for excellent planting conditions
in the spring.
A large acreage has been planted to small grains and
these crops are making good growth throughout the district.
The abundance of rainfall during the winter, which has left
the soil in excellent condition, has laid the foundation for
good growing conditions during the spring.
Vegetation was advanced abnormally in the southern POl'·
tion of Texas due to the generally mild temperatures. Ship.
ments of truck from the Rio Grande Valley have been un·
usuall y large.
LIVESTOCK
The physical condition of the district's ranges and live·
stock continues excellent. The winter has been unusually
favorable, feed and grazing has been abundant and losses
have been light. In fact, livestock have been better cared
for this winter than in many years. While some shrinkage
in livestock has been noted, it has been at a minimum this
year. Due to the abundance of cheap feed, larger numbers
of cattle are being fattened in the feed lots of the Southwest
which in turn will make for a better quality of shipments in
the spring. In many sections, owners are showing a tend·
ency to restock and there appears to be a good demand for
young stockers. Indications point toward a good calf crop
and already a considerable number of early calves have
dropped. Likewise, a heavy lamb and kid crop is expected
as a result of the good season prevailing since last spring.
Shearing of $heep and goats is under way and indications
are that the spring clip will be heavy.
Movements
and Prices
The January receipts of cattle and calves
reflected a substantial decline as cpmpared
to both the previous month and the same
month last year. On the other hand, receipts of hogs and
sheep were materially above those of either December or
January, 1926.
The cattle market reflected a considerable improvement
during the past month, prices on practically all classes
showing a gain as compared to the previous month. At
times the supply was insufficient to meet the demand. Hog
prices gradually worked to higher levels. Sheep and lamb
prices showed but little change.
1!l1.IIIIIIIIIIIIIIIIIIIIIIJIIIIIIIIIIIIIIIIIIII.IIIIIII11'111111111111111111111111111111111111111111111111111IIIIIIIIIJII[!)
~
::
~
§
S
S
~
COMPARATIVE TOP LIVESTOCK PRICES
Jan.
1927
Beef steers .......................................................... $ 9.25
Stocker steers .................................................... 8.00
Butcher cows ...................................................... 6.60
Stocker cows ....................... - ............................. 6.26
Cu.lves .................................................................. 10.75
Hogs ...................................................................... 12.40
Sheep .................................................................... 8.50
Lambs .................................................................. 12.26
J un.
1926
$ 9.00
8.26
6. 00
4.60
9.00
13.50
9.60
15.60
Dec, :::
1926 §
$ 7.50 §
7.75 §
6.00
5.00 §
9.00:
12,26 ::
7.60:§
12.00
The appended table shows the Department of Agricul.
ture's estimate of the number and value of livestock on
farms in Texas, Louisiana and New Mexico as of January
1, 1926 and 1927.
[!JIII"Utlllll .. 1111111111111111111111111111111111" 111111111111111 ,'"1111111111.111111111111111111111111111111111I1I11I
G'"::':'~:~''':'~'~'''~'~~:'~''':~'''~~~:~~~~~'''::'';~~:~''':~"':~"'f
Cotton
Movement
JANUARY 1, 1926 AND 1927.
Texas:
:
[!]
Horses ....................
Mules ......................
AU cattle ................
Swine ......................
Sheep ...............: ......
Louisiana:
Horses .................. ..
Mules ..................... .
A ll cnttle ............ ..
Swine .................... ..
Sheep .................... ..
New Mexico :
Horses ....................
Mules ......................
All eattle ..............
Swine ......................
Sheep ......................
-Number1927
1926
848,000
848,000
1,073 ,000
1,062,000
6,136 ,000
6,900,000
1,250,000
1,000,000
2,242,000
8,535,0 00
-Value-1927
1926
$38,160,000 $40,704,000
74,037,000
78,900,000
174,876,000 136,700,000
18,a75 ,OOO
12,200,000
33,611 ,80 0
28,810,260
120,000
176,000
616,000
511,000
102,000
126,000
176,000
648,000
496,000
106,000
5,895 ,000
13,862,000
13,420,000
4,864,000
308,000
6,929,000
15,774,000
13,030,000
4,464,000
812,000
i66,OOO
34,000
1,189,000
64,000
2,490,000
175,000
34 ,000
1,213,000
47,000
2,18,1,000
6,586,000
1,620,000
36,887,000
772,000
21,789,000
6,432,000
1,819,000
31,933,000
UU,GOO
20, 7-10,000
•
::
E::
f!}
The January receipts and exports of cotton
at Houston and Galveston, while season·
ably less than in December, exceeded those
of the same month last year by a considerable margin. The
foreign exports of cotton from all United States ports for
lhe period August 1 to January 31 this season were 23 per
cent higher than those during the same period of the previ·
ous season.
(!]IIIIJIIIIIIIIIIIIIIIIUIIIIIJIIHIIIII.II.III1I1I1II1.IIIJllllllllllltlltllllllltlllllllllltlIIIHJlIIIIJIIIHllllllll
la: : .=:-. :~ :
CO'jyr ON MOVEMENTS THROUGH THE POR'I' OF GALVESTON _
•
UIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 11111111 11111111111111111 II 1111111111111 11 111111111111111111 II Ilil ItlIIIIIIIIIIIIUl!.i
EJ
Jan.
1927
Nct rcce ipts .................... 480,883
Elxpo,·ts .............................. 420,77a
Stocks-January 81 ........ ............
Jun.
1926
269 ,042
3J4 ,915
Aug. 1 to Jan. 31
Thi.
L ast
Sea80n
Season
2,924,780
2,5a5 ,9S4
2,385 ,592
1,968,175
739,114
608,696
1111 11 11111111111 11111111"111111111111 1 11111 1 111 1 1111"1111111111111111.11111.1 111 111 1 11111111111111111, ... 11111,,11 1
9
(!] .11111 1 1 111 1 1111.1.,1. I .. J 1111111111111 1 1111111111111111111111 111111111111 111111111111111111111'1111111 1 1111 II I I .1I"IIGl
!!lIIIIlIlIIIIIIIIIlIlIlIlIIlIIIlIlIIIIlIlIIIlU.UIIIIIIIIIIIIIIIIIIII.1IIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII II!l
~.;:
FOR~~;ORTH~;~~EST~;~i~:ECEI;;;6 Lg~i~r
Cntlle ..................
Cnlves ................
Hogs ....................
§ Sheep ....................
60,087
12,510
29,464
18,244
88,802
16,779
20,356
9,248
L 28.715
L 8,269
G 9,108
G 8,996
71,641
2,1,379
22 ,721
9,664
L 11,456
L 11,869
G 6,748
G 8,680
I:::.
~
Gnllll ••• III.IIII.I.IIIIIIIIIIIIII I .I •••• II •• I III. 111111111111IIIIIIIIIIII I IUlllllltllllIll ll .IIIIIIIIIIII I IIIIIIU •• I(!)
I~::~:~:;v:ENT;i:i:UGJ;I~~ pO~:~fji!~:~Ji{~!! I
[!JIIIIIIIIIIIIIIIII' • • • I.IIIIIIII ••• II IIIIII.II •• 'IIIIIIIII11111 1 11111111111111111111"111111111111111111111111111111111 1 [;)
MONTHLY BUSINESS REVIEW
8 .....
3
11 1.111111111111111111111 .. 11111 ... ' '' .......... 111 ....... ' .. 111111111111 .. 11111111111111111111111111111111111111111111111 " 11 11111111111111111111111111111111111111111 .. IIIIIU ....... III.II ...... IIIIIIII .. IIIIIIIIIIIIIIIIIIIIIU .. III .. IIIIIIIIII I I!J
§
COTTON CONSUMED AND ON HAND
:_!:
Cotton consumed ....-...............................................................
Cotton on hand J a nuary 81:
(a) in cons um ing establishments ..............·............:.....
(b ) in public storage lind comp resses......................
I·
g
~~~N ~~~~=:?a~~::~~:EL1
487,788
............
UNITED STATE S
A ug us t 1 to January 81
J:an .
Jan.
T his
Las t
1926
Season
Sea son
1927
411,652
2,478.298
2,195,698
............
1,272,021
5,74 2,740
1,123,416
4,949,597
604,584
.. ..........
582,315
3,434 ,040
3.180,4 34
............
1,852,987
6,070,020
1,815,282
5,180 ,988
8 11" ,••• ,.11111.1111 ••• 1111.111 ••••••• 111111.1111.,11 ••••• • ••• 111 •••• " • • 11.111 •••• ,111111, • • • ,11 •• 1111 •••• 1111 •• • ••• • ••• • • " '11, •• 11111'111111111 •••••• 111,.11111111111111111'1'11.11111111111111 1 111' 1""1.1 •• , .,1111.I.IIIIIIIIIIIII.,IIII I IIIIII I IIIIII[!}
1!J ....... III .... IIIIIIIIIIIIIIIIIIIIIII .. III ... II .. UIlII.III.IIIIIIII.IU .. 111I1I111111111111111111111'1I11.'III1I1I.lI l l!]
::' ~:; ~;:;:,;.~:;L~::O:S::~~:~:M:~;~Nt:'~012:07~I' Jn1n:t' 657~f :o ~
:
For other foreign ports .......................................... ..
F or Coastwise ports ................................................ ..
In compresscs and depots .......................... .. ............ 625 ,614
g
Total... .......................... ............................... .......... 789, 11<1
in January at an average pr ice of $22.12 per ton, as compared to 97,8 02 tons bought in December for which an
8Iverage price of $21.08 per ton was paid_
m...
IIIIIIIIIIIIIIIIIIIIII .... IIIIII .. II .. IIIII .. I ...... ""II .... IIII .. I .. IIIIIIIII ..... . .... 11. 1I .IUII I .III.UIIIIII 18
STATI S'rlC S ON COTTONSEED AN D COTTONSEED
PRODUCTS
580,496
603,696 .
8111.1 ••••• 1.'.1.1.'1'.1.111111111111,.,1.11111,.".1,111111111'1'11111'1111111111111111""1111'1111111'1"111111111 •• 1 8
rn ..
:
II II II II II II II "111'" .... 1 .... 1 .. . ........ " ........ 11""1111111111111 1 1 1 1111111.1111111.111 ' 11111111.1' 1111111.1 '
SEASON' S RECE I PTS, EXP ORTS, AND STOCKS A'f A L L
~:_
:
UNITED
STA'[1E:hi~:~;'
1 to J ani,!:t SeRson
Receipts .................................... ................. 9,657 .417
E xpor ts : Great Britain ....... _............... 1,669 ,1\88
France ...................................... 712,697
Cont inent .................................. 8,120,566
Japa n- China ......................._ 986,028
Mex ico ......................................
6, 294
Total for eign ports ............... _ 6,496,4 68
Stocks at a ll U. S. ports, J a nuar y 81 2,945,008
E
I!]
::
i
8.514.488
1,605,842
642.185
2,829 ,54 0
719.882
31,890
5,329,289
1,514,438
[3 ... IIIIIIIII.UIIIIIIIIIIIIIIIIII' 1 ...... 11 ... 1111111111111111111111111111111111111.1111111111111 .. 11111111111111 1II t i l l ! )
~"''''''''''''''''''''''''''''''''''''';~~';''~~~~~';:~~~~''''''''''''''''''''''''''" ....... ""~
I: · N. w Yo.k(:'ddH··~Q;;:~t ."~~;,
New Or lean s ............. .......................... .........
: Da llas ...........................,...... ............................
:: . H ous ton .. .. ..........................:...........................
E Ga lveston ......................................................
8
18.40
12.55
18.85
18.40
12.58
11.70
12.58
12.60
F·:~t::
18.94
12.95
18.75
18.85
\
I:
:
::
§
111 1111111111111111111.1111111 1.1111111"11 •• 111111.111 .. 11111111111.11111111111."11'"111.11111. : 111111111111 1 11.11"8
Reports fr om 68 cottonseed oil mills in this district reflected a sustained demand for cottonseed products during
January. The average prices received for hulls, cake and
meal increased, while the pr ices for crude oil and linters
were slightly less than those received in December. Crude
oil sold at an average price of $.0686 per pound in J anuary as compared to $.0696 iri December; cake and meal sold
for .$24.48 per ton as against $23.51 per ton, and hulls
b~'ought $4..32 per ton . as against $3.86 per ton. Linters
sold at an average price of $.0188 in January as compared
to $.0222 per pound received in December. There were
.81,112 tons of cottonseed products purchased by these mills
~:=_
•
RE CEIVE D
J a nuary. 1927
Products
Shipped
.E.. Cr ude 011 ..... ....................... ........ ...... .... 26.612,606 Ibs.
: Cakc and meal....................................
52 ,259 tons
.' g ~~1. 1I 8 ....... ,.................... ..........................
42 ,698 tons
:
Inters ..................... _............................ 10.816.534 IbR.
1,650,498
1,271, 135
5,266.741
4. 884,817
1,307,271
1,01 8,727
4,260,844
3,816,800
(tOilS) ...... .... ..... ...
354.080
278.5 01
1.029.646
1.098 .364
C"ude oil produced
(pounds ) ............ .. 366,726,985 285 .781,000 1,267 ,698,84 9 1.094,65 ]'581
Cukc and MellI p roduced (tons) ........
608,059
1,904.721
479,0 00
1. 769.148
Hu lls p rod uced (toni) 384,867
286,000
1.234,649
]'0'18, 000
L int ers produced
(500-lb. buies) ....
211,369
192,000
695 ,650
712.000
Stocks on ha nd
J a n. 81 :
Crude oil (pounds ) .. 37,168,670 21,720,000 11 5.55 2,582
69 .008.000
80,266
75,000
147.250
316,357
Cnke and meal (tons)
H u lls (tons ) ............
86,049
75,000
235,800
185 .000
: Lin ters (500-lb. bales)
70,631
50,000
221 .200
187.000 :
[!J', ••• ,II •• I.,IIII.IIIIIIIIIIIIIIII.II •• ,IIIIII.IIIIII ..... 1••••••• 1••• '1.11111111111111111"1'11111.,11 •• 111IIIIII I IIII@
Improvemen t in the textile industry, foll ow ing the rise in
the price of raw cotton, was refl ected in milling opera tions
during J anuary, Mills generall y, reported a broader demand for goods and fi rmer pr ices with an upward tendency.
There were 3,327 bales of cotton consumed by reporting
mills during the month, as compar ed to 2,964 bales in December and 3,154 bales in January last year. P roducti on
showed an increase of 13.4, per cent over December and was
] 0.6 per cent greater than a year ago. Stocks on hand at
the close of the month shmved an increase over th ose at the
end of December but were less than stocks on January 31,
1926. Orders at the cl ose of Janu ary exceeded those of the
previous month and the same month last year.
8.1111111111111 111 11 , 111 1 11111111 . 11 11111111111111111.1111111111.11111111111.,1111111111,., •• ,111,.111 , •• , 1.1.,11111.1118
::1,_---
:G:~1:9~8:~r~:7 STI~:n~;~~ Deec6m~1:9b~2~eG~" ~- :
TEX'!'ILE MILLINGJ
Number bales con. umed...... ................
Number Spindles a clive......................
Number pou nds clot h produced ........ 1,52 2,8'13
811 ...
__
8. 154
64 .436
J ,876 .54 1
1,342,860
,11111 ... 11111 ....... 111111111111111111 .......... ,1111 .. 1111,11111111111 11 1111111111 I II HIIIIIIIIII II 1111 II II 1111
lID
WHOLESALE TRADE
~. ","' IIIUI'"II .. 11 II """~. 'U, """ .. 11 II 1I1I1I1I.llIlIlIlllIft I I " " " It 111111" 1111 1 11 1.1111111111111111 11111 18
E . COT'J.1ONSEED PRODUCTS SH IPPED AN D AVE RAGE PRIC E
U n ited Stutes
Aug us t 1 to January 81
'!,his
Las t
Season
Senson
TEXTILE MILLING
COTTONSEED PRODUCTS
r
Cottonseed r eceived
at mills (tons....
Cottonseed crushed
(tons) ..................
Cottonseed on ha nd
Texas
A ugust 1 to J a nuary 81
'rllis
Las t
Senson
Season
::
§
Aver age pl'ice
F . O. B. M ill
$ .0686 PCI' lb.
24.48 per ton
4.82 1><'1' ton
.0188 per Ib
lEI III'U'IIIIIIIIIIIIIII"IIIIIIIIIIIIIIIIIIIIIIIIIIII I IIIIIIIIIIIIIII •• IIIII I IIIIIIIIIIIIIIII I III I I I IIIIIIIIIIIIIIIIIIIII!l
The distribution of merchandise in wholesale channels
during J anuary reflected a seasonal expansion as compared
.to the previous month, but it continu ed Lo fall short of a
year ago. While consumer demand has not increased materially, factors of considerable importance have been the
inclement weather, and the bad r oads whi ch have made
traveling difficult in the rural secti ons. Reports indicate
that merchants are shmving a tendency 10 operate on a more
MONTHLY BUSINESS REVIEW
4
conservative basis. They are adopting stricter policies, not
only with regard to limiting purchases to actual or well defined needs which in turn will reduce the volume of cred it
needed for current operations and increase the return on
capital invested, but, also, in the matter of dispensing credit.
Many merchants have switched from a credit to a cash basis
while others are using more discretion in granting credit.
While there was a seasonal expansion in the demand for
dry goods at wholesale, business continued on a smaller
scale than a year ago. The January sales of reporting linns
were 50.0 per cent greater than in December but 14.2 per
cent less than in January, 1926. Merchants are following the
policy of making small purchases to cover only actual requirements. Collections continue generally slow.
Quietitude prevailed in the wholesale drug trade during
January. Sales of reporting firms were 1.6 per cellt less
than in December and were 8.3 per cent less than in January
last year. Retailers are buying to cover only immediate requirements and reports indicate that cons umer demand has
been light. Prices have shown no material change. Collections have been generally slow.
The January sales of reporting wholesale grocery firms
were 2.7 per cent larger than .those in December but reflected
a decline of 8.7 per cent as compared to a year ago. While
the demand has increased somewhat in certain sections, very
little improvement is noted in other sections. Collections
are still slow in most sections. Prices evidenced a slightly
downward trend.
While the demand for farm implements during January
was on a broader scale than during the closing months of
1926, it is still considerably under a year ago. The January sales of reporting firms were 133.2 per cent greater than
in December but fell 45.6 per cent below those for January,
1926. Farmers appear to be holding their purchases of
implements to a minimum. Prices remained generally
steady.
Sales of hardware at wholesale during January registered
a further substantial decline from the previous month and
were 0.9 per cent less than in the same month last year.
The recession in demand appeared to be general throughout
the district. Collections continue slow.
CONDITION OF WHOLESALE TRADE DURING JANUARY. 1927
Percentage of increase or decrease in
Net Sales
Stocks
January, 1927
compared with
Jan. 1926 Dec. 1926
- 1.7
+12.8
- - 14.7
+2 0.7
- 2.8
- 1.2
- 1.8
4.9
- 8.3
+ 5.0
January. 1927
compared with
Jan. 1926
Dec. 1926
Groceries ............................ - 8.7
2.7
+ 50.0
Dry Goods ..........................-14.2
Farm Implements ..........- 45.G
+ 188.2
Drugs ..................................- 8.3
1.6
Hardware ..........................·- .9
- 16.1
+
+
mllllllflllllllllllllll .. II .. IIUIIIIIIIII.II .. IUIII.lllllllllllllltllIlIl'UIIII;1111.1111111111111111111111111111111 . 8
RETAIL TRADE
Seasonal recession in the volume of distribution of merchandise by department stores in larger centers marked the
course of retail trade during January. Sales were 51.6 per
cent less than the large December volume and 5.0 per cent
less than in January a year ago. Widespread "clearance
sales" were featured during the month and while these sales
met with generally good success, buying was retarded to
some extent by the warm and rainy weather.
Stocks on hand at the close of January were 5.4 per cent
less than a month earlier and 13.9 per cent less than a
year ago.
The ratio of outstanding orders to last year's purchases
was 8.9 on January 31 as compared to 4.3 on December 31,
and 7.0 on January 31, 1926.
The ratio of January collections to accounts outstanding
on January 1 was 36.0 as against 39.4 in December and 38.9
in January last year.
G~: _I: '''~~~~:''~~:~~':'''''''''''''' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ''''''''''''''''''''"~~~~'~~~~"~;'~~;:=':1':4 9'::'~'~~';"~::::=':6~"2~:"~ ~""""""':~~~~~:"""""·""~=";h4~8~1:.r':""""""""~~~:··I:::::::::.
January, 1927, compared with Janunry, 1926............................................
January, 1927, compared with December, 1926..........................................
Credit Sales:
J a nuary, 1927, compared with January, 1926 ........................................_...
January, 1927, compared with December, 1926..........................................
Stocks
:
January, 1927, compared with January, 1926..........................................
:
Januury, 1927, compared with December, 1926..........................................
§ P erce ntnge of s nles to uverage stocks in .
§
January, 1926 ....................................................................................................
:
January, 1927 ....................................... _... ........................................................
- l\'atio of outstanding orders to last year's purchases......................................
;
Rati?n~f J;~~~~y I~O~I~~~~~.~ ...~~...~~.~.~.~.~~~...~~.C.~.i.~~~~~...~.~~ ...~.~~...~~~~~~~
~
+ 6.9
- 47.6
- 5.0
- 61.6
- 16.7
- 44.6
+ 1.6
- 62.S
+ 5.7
-44.5
- 2.2
-4 7.5
- 7.7
--48.6
- 20.7
-- 8.1
- 13.7
+ 3.0
-
-
8.2
6. 4
-U.9
- 5.4
:
:
22.2
2~ . 7
~.8
16.3
19.6
6.5
26.1
28.0
8.9
20.8
21.7
6.0
21.1
22 .6
8.9
:
•
33.1
81.2
40.2
8.7
6.6
~0.6
36.0
§
§
f
GlIIIIIII.'IIIII.IIIII.I"' ••••• • I ••• ' •••• I ••••• IIIII.'1,1111111111'11.11111.1.,1111,11111111'111'1.111.111 •• 11'111111'.11,1 1111.1 '11 111111,.1.,.,,111"1.,111111111"11 1 111'1'1.11111111,1,1'.1.11.1 111 11111111111111111,.11111111111111111111111111111111.[3
FINANCIAL
The volume of public spending as measured by checks
charged to depositors' accounts at banks in sixteen principal
cities of the Eleventh Federal Reserve District reflected a
seasonable decline of 5.7 per cent as compared with the
previous month and was 0.7 per cent less than during the
corresponding month of the previous year.
Acceptance
Market
The volume of acceptances executed by accepting banks in this district and which
were outstanding at the close of January
showed a substantial reduction from those outstanding at
the end of the previous month. Acceptances outstanding on
January 31, 1927, amounted to $4.,063,210.97 as compared
to $5,763,025.01 on December 31, 1926. Acceptances executed against export and import transactions increased from
$934.,891.68 on December 31 to $2,102,997.37 on lanuary
31, while those based on the domestic shipment and storage
of goods decreased from $4,828,133.33 on the former date
to $1,960,213.60 on the latter date.
MONTHLY BUSINESS REVIEW
~''''I''''"'''''III''I''IIIIIII''''IIII'''' ' ''''III''I'''''''''''''''''''''''''II'' ... 111 .............. 111 ............ 18
=
DEBITS TO' INDIVIDUAL ACCO'UNTS
=
\
I
Jan.
1927
Austin .................... $ 19.522
Beaumont .............. 27.212
Corsicana .............. 8.614
Dallas .................... 228.308
EI Paso .................. 33.801
Fort Worth ........... 90.802
Galveston .............. 55.852
Houston .................. 162.505
Port Arthur ..........
9.499
Roswell ..................
3.240
San Antonio ........ 44.784
Shreveport ............ 41.852
Texarkana ............ 11.Z74
Tucson .................... 9.997
Waco ...................... 18.825
Wichita Fall......... 88.812
Total. 11th
E
District ............ $792.849
Jan.
1926
$ 21.181
19.080
10.480
254.109
34.761
85.368
50.957
151.975
9.194
3.588
40.041
48.045
11.612
9.242
20.029
38.857
Inc. or
Dec.
- 7.8
+42.6
-17.4
-12.1
- 4.2
+ 6.8
8.6
+ 6.9
+ 8.3
- 9.6
+11.7
- 8.9
- 2.9
+ 8.2
- 6.0
-.1
Dec.
1926
$ 22.558
25.068
9.243
235.902
85.048
98.694
59.148
179.632
10.080
8.819
44.690
42.965
10.518
9.888
18.602
34.518
Inc. or
Dec.
-13.4
+ .9
- 6.8
- 5.8
- 6.0
- 8.5
- 6.4
- 9.5
- 5.8
- 15.2
.1
- 8.8
+ 7.2
+ 1.2
+ 1.2
- 2.0
$798.459
-
$840.848
-
+
.7
5.7
E
81.... 11 ............ ,.11 ••••• 1, ••• 111, ••••• 111 ••••••••• 1111111'1"'11"'111111111111111"111"111111'1111111111111111"'9
5
Condition of
Member Banks.
in Selected
Cities
The past mO'nth witnessed a decline in the
investments O'f member banks in selected
cities and a substantial increase in lO'ans.
Investments in U. S. GO'vernment Securities
declined $148,000 and investments in O'ther
stO'cks and bO'nds declined $1,528,000. LO'ans secured by
cO'rpO'rate securities reflected a gain O'f $2,578,000 and the
item "all other lO'ans" (largely cO'mmercial) rO'se $2,861,.
000. TO'tal lO'ans and investments shO'wed a net gain O'f
$3,500,000. The net demand depO'sits O'f these banks O'n
February 2 were' $1,132,000 less than O'n January 5 but
time depO'sits rO'se $1,737,000 during the same periO'd. Their
reserve with the Federal Reserve Bank declined $1,225,000.
Their bills payable and rediscounts with the Federal Reserve
Dank amO'unted to' $2,213,000 O'n February 2 as compared
to $3,952,000 O'n January 5 and $4,735,000 nn February 3,
1926.
~''''''I1''''I1I1I1I''IUUIIIIIII''I''IIIIIIIIIII''"IIIIIIIIIIIII'U'''''II'''''IIIII IIIIIIII"""III.IIII"III'I .. "IIII"" UII,IIIIIII.IIIIIIII.IIIII ... 1111'11111111111111111111'111111111111.111111111111111111111111IIIIIIIII .. IIIIIIIIIIIIIIIIII III!]
::
CO'NDITION STATISTICS O'F MEMBER BANKS IN SELEC'l1ED CITIES
::~
E
1.
2.
8.
E
§
::
Feb. 2.1927
d6
$ 48.412.000
22.696.000
Number of reportlnlr banks ....... _............................................... _.................. _............................ _
U. S. securities owned....... _.................. _...... _.................... _...........................................................
All other stocks. bond. and .ecurities owned ................................................ _..........................
~a~. ~ecure: bb y :;,. kS. G,rbrnden~h obl~gati°U···s ....G................ ·.. ·....bi:.... ·..:........·........ ·....
:
Jun. 5. 1927
46
$ 48 .5 60.000
Feb. 8. 1926
48
$ 50.268.000
23.4 08.000
3.0na.000
~4 . 224.000
7~:m:ggg
2.878 .000
::~
.=
:
§
I ~ f~ee~~4~1~!::;i::i~J~~~:¥~l~~~~~I~~~~~~~~J~~ ~ ~tL~~:E~J:~};~;~~~T~;;J~~~~~~~~~~~~) m:m:~gg ~!niHU ~~nu~m I
=
§
10.
11.
:
Bills payable and redl.counts with Federal Reserve Bank_.......... _........ _........ _........ _........
Ratio of loan•• to net demand depesits ....................................................... _...............................
°Loana Include only items 4 and 6.
28.720.000
29.945.000
3.952gg?J,
2.2189g~~
29.995.000
4 . 7358~~
:
~
:
8,111.11,111' •• , •••••• ,1.1,11 •• ",.1.1., •••••••• ,1.111.11.,111 •••• , •• ".,11 ••••••••••• 111 •••• ".".11"111111"'111.1'1111 11 11111111.111111111 •• 11111111.,.,.,1'11 •••• ,111, •••• 11111.11111111.11.1 •• '.111 •• ' •• ".111111,.111111111.11111.1.,I.,'III.,.I""l!)
Savings
Deposl:ts
RepO'rts from 94. banks in this district
which operate a savings department reflect·
ed an increase O'f 5.0 per cent in the amO'unt
O'f savings depO'sits O'n January 31 as cO'mpared to' January
31, 1926, and .1 per cent O'ver thO'se O'n December 3], 1926.
m............
I •• IIII ••• I •••• I.,IIII •••••• I.,.I ••••• I •• 1 •••• 111 •••• 1 •••• 11"11 ••••••••• , ••• ,11111"11 •••••••••• 1 •• 11111.11 ••••• 1' 111 .,1111.1.111' ••••• , ........ , •••••••••• , ••••••••••• 11'.1111 •• , ••••••••• 1.1 •• 11 .11111 1111IIIIItll •• I.I •• I'I'.,III",I.I.II I[!)
January 81.1927
Number of Number of
Amount of
Reporting Savings
Savings
Banks
Depo. itors
Deposits
Beaumont ...................................
4.
5.586
$ 2.819.255
Dallas ............................... _........
6
50.555
18 . ~11.258
EI Pa.o .....................................
2
12.082
4.789.442
Fort Worth ...............................
2
14.698
5.616.988
Galveston ...................................
3
18.278
9.824.486
Houston ............... _....................
12·
55.890
24.997.888
San Antonio .............................
6
28.099
12.929.571
8ha'c·eove.po
....rt
........................................ . ............... .....
4·
28.090
10.844.534
W
4
7.445
4.058.587
Wichita Falls ...........................
1
1.180
505.889
All others ...................................
49.
40.667
17.519.881
E
811 ..
There were 252,515 accO'unts caO'ied by these banks at the
clO'se O'f the mO'nth, as against 222,773 accO'unts O'n the same
date last year and 249,232 accO'unts at the clO'se nf the
previous mO'nth.
Junuary 81. 1926
Number of Amount of
Savillgs
Savings
Depositors
Deposit"
6. 250
$ 2.248.190
85.427
15.547.687
11.878
5.119,401
14.160
5.268.004
12.914
8.828.069
49.568
28.055.180
25.218
11.792.081
20.958
11.051.655
6.662
8.840.889
1.IU6
459.921
89.662
18.781.195
Inc. or
Dec.
+ 3.4
+18.4
- 6.4
+ 6.6
+ 6.6
+ 8.4
+ 9.6
- 1.9
+ 5.7
+ 10.0
- 6.7
December 81.1926
Number of A'l'lottn. 0;
Savings
Saving.
Depositor.
Deposits
5.660
$ 2.323 .005
49.878
18.131.706
12.011
5.289.408
18.904
6.266.034
13.117
8.844.7 21
54.716
25.081.961
27.765
13.058.567
28.407
11.885.410
7.398
8.990.620
1.176
456.488
40.205
17.443.781
Inc. or
Dec.
-.~
+ 1.5
'- 8.6
+ 6.7
+11.7
.8
- 1.0
- 8.4
+ 1.7
+11.1
+.4
TotaL..................................
93
252.515
$111.317.674
222.778
$106.987.222
+ 5.0
249.232
$111.170.696
+.1
·Only 8 banks in Beauniont. 11 banko in Hous ton. 3 banks in Shreveport a nd 46 bunks in "ull others" reporte d the number of sRvings
depes i lorl.
.
E
1I1I1I1I 1I .. "IIIIIIUIlIl ...... II .. " .. II ......................... III .. IU" ............. " .. 11111111111111111.111.111 11 ........ 11111111 ...................... 11111111 ........ 11111 ... 111111 .. 11 .. 111111111111,.1111111.111111.11111.1.1.111.1.111.1"8
m l ••• ' ••••• '.I •••••••••••••••••••••• I .. , ••••• I ••••••••• , ••• 1.11 •••••••••••••••• 1 ••••• 1.1111 •••• 1.11, ••• 1 ••• 1."1 ••• 1111.111 •• ••• 11.1 •••• 11.1 ............................. 1 •••••• 1 •••••••• 1 ••••••••••• ,.1 ••••• ,11 ••• 1 ••• 11.1111111.1,111 ••••• 1.1'.,111 •••• '1 18
E
FEBRUARY DISCO'UNT RA'fES
:~
::
DullBs
Rate chargc,u customers on prime commercial paper such
as Is now elhrible for rediscount under the Federal
~ R~"":h:rg!dt on
§
-
§
id"~ther
loana
banks;' secured by bills
receivable ....................... _................... _.................. _........ _..........
Rate on loans secured by prime .tock CXChllflg O 01' 0 1 he.'
current collateral (not including loans placed in other
markets through corre.pondent banks )
(a) demand .................. __ .............. _........ _........ _.............._....
I ~E~:. :~::;:~:;~=~;;:~~~;:~;~;~~;;;~~:::~~~~~~~
E
EI Paso
Prevailinlr rata
Fort Worth
•. 6
Houston
:
San Antonio
:!
Waco
5.7
6.6
6.8
6.7
:
5·6
6
5·8
5·G
~
-
O·S
[,·6
G·S
6.7
;;;
::i
~
~
6
;;;
8
~:;
;~;
E
:;I
[E! 11I1I.1I1I"'II.II •• IIIII1UIII.UIIIIIIIIUlilltIU.,' :JI"' I I IIIIIII.,.1IUI.,IIIIIIII I I1I1'.III.IIIII ... I.IIIIII ...... I II I' .. ".III.IIIII"' ... ,.Ull111 ' 1111111111,,111''''1111111'''1''''111111'"11111111''11111'''1'111.,11111111.,11 ..... " .. 1111 ••
0
MONTHLY BUSINESS REVIEW
6
Deposits of
Contrar y to the usual seasonal trend the
Member Banks net demand deposits of member banks
showed a slight increase of $817,000 dur·
·ing January. Time deposits reflected a gain of $5,4.16,000
during the same period. The combined deposits of these
banks which amounted to $800,127,000 on J anuary 26 were
$27,016,000 less than on January 27, 1926.
borrowing banks on January 31 as compared to 88 b~nks
on December 31 and 69 banks on January 31, 1926.
Due to the reduction both in our loans to member banks
and purchases of bankers' acceptances, the total volume of
bills held by this bank declined from $20,698,917.73 on
December 31, to $16,926,623.33 on January 31, distributed
as follows:
.
(!J •• IIIIIII.t"'IIIIIIII.I., •• ,1111111111111111111111111"11'1.1.,11111111111111111111111"1111'1,.1 •• 11, •• ,,.1.,111111"8
Member bank collateral notes secured by U. S. Governmcl\t
obligations ......................................................._.... .. ......................... $ 813. 760.00
Rediscounts and .all other loa ns to member banks........................ 2.949.418.91
Open market put'chases (Bankers ' Accepta nces ) .......................... 13.163.454.42
DEPOSITS OF MEMBER BANKS
Total
pemand
Banks in cities Banks in cities
Total with a popula- with a popul ....
tion of less
tion of over
Time
16,000 .
than 16,000
Demand Time
Time
~
- - I--Jan. 27. 1926 ........•.••_
Feb. 24. 1926............ _.
March 24, 1926 ....._ ....
April 28. 1926 ........•....
May 26. 1926 ...............
June 23. 1926 .............
July 28, 1926 ...... _...... _
Aug . 26. 1926 ...... _ .•
Sept. 22, 1926 ................
Oct. 27. 1926 ................
Nov. 24. 1926 ... _.... _..
Dec. 29. 1926 ....... .. .......
_ J an. 26. 1927 ................
8
659,818
664,008
687.392
605.845
698.483
688.075
589.748
584.463
61 2.834
626.554
685.704
632.391
63 3.208
167,830 808,899
171,024 808,360
169.159 287.084
166.668 272.389
165.099 265.613
166.827 259.630
165.299 262.499
166.277 257.886
165.732 275.780
164.972 281.080
165.713 287.413
161.503 281 .721
166.919 , 282.875
Total bills held .. ................................................................................$16.926.623.88
44,722
45.557
45.178
44.633
46.085
44.937
45. 628
46.407
45.640
42.998
44.194
41 .290
48.791
360,914
350,658
350.308
333.1.56
332.870
328.446
327.249
326.577
88 7.05 4
345.474
34R.291
360.670
350.888
122,608
125,46 7
123.9Rl
121.086
120.014
121.89o
119.671
119.870
120.0n2
121.974
121.519
120.21 R
123.128
~
11111.1' •• 1.1.'.' •• 1.1111111, ••• 1.1.1 •••• 1 •• 1111 ••••• 11, •••••••••• 1111111 11 ••• 111 •••• 111111111.,1 ••••• , •• 11IIIII I III'I'ID
Operations of Following the rapid decline in the volume
the Federal Re· of Federal Reserve Bank loans to member
serve Bank
banks during December which reduced
these loans to $4,, 772,4D9 on the last day
of that month, there was a noticeable increase during the
first week of January, reaching the high point O'f the year
on Janua ry 7th at $7,598,937. Since that date, however,
there was a steady decline in these loans. On January 31,
they amO'unted to $3,763,169, reflecting a net decline of $1,009,240 during the month and during the first half of Febru·
ary thel:e was a, furth er decline of $571,453. There were 84
I
There was a sharp recession in our Federal reserve note
circulation during January which was brought about by the
return flow of currency following the Christmas holidays.
The actual circulation of these notes on January 31 amounted to $43,742,460 as cO'mpared to $4,8,803,275 on Deceniber
31 or a net reduction of $5,060,815 during the month. The
reserve deposits of member banks declined from $62,898,068 on December 31, to $59,816,933 on January 31. The
daily average of these deposits during January, however,
was practically the same as that during the previous month.
FAILURES
There was a further marked increase in the business mortality rate in the Eleventh Federal Reserve District during
January. While there is usually a higher failure rate in
January due to' the strain of annual settlements, the increase
in failures during the past month was very large. There
were 134 defaults during the month with liabilities aggregating $2,348 ,320 as compared to' 114· failures in December
with an indebtedness of $1,815,600 and 108 insolvencies in
January, 1926, owing $1,4.57,716.
PETROLEUM
After showing an increase for eight consecutive months, the chief factor in curtailing operations in Hutchinson
production of crude oil in this district declined slightly in County field, the principal producing area of the state, reJ anuary from the high level reached in December. Produc· sulting in a further decrease in production in that locality.
tion during the month amounted to 2] ,668,210 barrels O'f oil In contrast to O'ther important producing areas, production
a compared to 22,132,276 barrels in the previous month in Crane and Upton Counties showed an increase but the
representing a .decrease of ]4,970 barrels in daily average gain was not sufficient to offset the decline in the other
produ ction. Drilling operations subsided further in J anu· fields of the Central West Texas area. The Spindletop
ar y and initial production fell below th at in December. fi eld registered only a slight decline in production although
The decl ine ill activities was general throughout the district new completions and initial prO'duction were cO'nsiderable
and was due principally to' excessive rain and cold weather less than in December. Production of oil in January in
during the latter half of the month. There were 706 com- NO'rth Louisiana I,Imounted to 1,64.1,420 barrels, as completions during the month of whi ch 44,0 were produ cers pared to 1,731,660 barrels in the previous month or a de.
whi ch compares to 88.5 completions in December of which crease of 2,911 barrels in daily average production.
'@
590 were successful. Initial prO'duction declined from m.....
CRUDE
OIL
PRICES
~_: _
J93,659 barrels in December to J 19,260 barrels in January.
UIlIlIIIlIlI .... IIIIIIIIIIU .. IIIII ... IIII . ... ,IIIIIIIIIIIIIIIIIIIIIII ... 1I1I 1I1 .. II IIU .... IIIIIII I IIII IIIIII ..
Feb. 11.
Feb. 12.
1927
$1.40
1926
$1.:0
With the exception of the Gulf Coast area all Texas fields
registered declines in produ ction, the combined daily aver.
age output of all fi elds being 12,059 barrels less than in
:
Tex~~·~~d···N~;:th···~~i~i~-':;~·
~ .Pri~~; 1~;. a~:b.a~~:e)i926:···~·~i···~~~·ii~b·i~···~~···~ ~:!parab1e
December.
811111 ..
Extrelnely inr-Iement v/eather in January was
Texas Coas tal (Grade
North and Central
baala.
§
~
111111 ......... 1111111111111 ... 11 1 11 .. 111111111.111111 .... 11 ... 111111 ..... . 1 ..... 1 .......... 11 ................. • •
OIL PRODUCTION
DecembCl'
Total
Daily Avg.
8.126.644
262.150
129.213
4.005.610
1.704.070
64.970
5.292.940
170 .740
41 .011
1.271.802
North Texas ................................................. ............... ..
Central-West Texas .............................................. ..._.
Eas t-Central Texas ................................................... .
Thxns COastaL ................................ _................. ..........
Southwest Texas .. ..•............................................_......
8
Increase
Total
292.669
Dee.
202.070
Dec.
68.185
Dec.
219.030
Inc.
29.932
Dec.
01'
Decrease
Daily Avg.
Dec.
9.441
Dec: ,., : ' ·6;518
Dec;: .,
',2.200
Inc;·
7.065
Dec.
965
Total. Thxas ........................ - ............................:
North Louisiana ..........................................................
20.026.790
1.641,420
646.0 25
52.949
20 .400.616
1.731.660
668.084
55.860
Dec.
Dec.
373.826
90.240
Dec.
Dec.
12.050
,2.911
Total. Di.trict.................................................._...
21.668.210
698.974
22.13 2.276
713.944
Dec.
464.066
Dee.
14.970
11111111111111111111111111111111111111111111111111111111111I1111I11I1I11111111I111111I111111111I111111I1111'1111111'111111 11 11111111111111111111111111111 ' 11111111111,,111111111111111'1"111111111111111.11111111111 •• '.1.1.1111111 11 1111':IIIII.I.IIII •• lro
MONTHLY BUSINESS REVIEW
m'.III1IIIII1IIIIII1III1I1I1I1I1I1I1IIIU.III11J1UllllllflUIIIIII.IIUIIIIII1IIIIUIIIIII.,IIIIIIIIIIIIIIIIIIIIIIIIIII[!]
§
::
JANUARY DRILLING RESULTS
CompleFieldtions
North T exns ................ 314
Central-West ·1'exas ...... 221
East-Central Texll"......
3
Texas Coa s tnl .............. 63
Southwest Texas ..........
5
Texas Wildcats ............ 41
;:
Producel's
223
141
2
49
1
2
Gas
Wells
6
5
0
1
4
8
FailInitial
ures Production
86
34.796
75
89.228
1
18
43.656
0
35
86
55
Total Texas .................... 647
North Louis iana............ 59
418
80
18
8
211
21
117.770
1.490
Jan. Totals. District.... 706
Dec. Total6. Distl'ict .... 885
448
690
26
40
232
265
119.260
198.659
::
7
in December to 77 per cent in January. Production con·
tinued steady, amounting to 83 per cent of normal, as compared to 84, per cent in the two preceding months. Stocks
on hand at the close of the month were only 9 per cent
below normal which is the nearest they have approached
normal since September 1925, at which time they were of
Lhe same percentage. Unfilled orders on the books of 52
reporting mills on January 31 called for 58,616,191 feet of
lumber as compared to orders for 4,2,039,402 feet recorded
at 50 mills on December 31.
m".III1II1.,U.IIIIIIIIIIIIIII.,IIlIlIlIlIlIlIlIIlIlItIlIlIlIlI.IIII1I1I1.II •• ItUIlIl11I11111I1I111111I1I111.11I1I11I 1r::l
81111111111111111111111111111111111111111111111111111111111111111111"11IIIIIIIIIIIIIIIIIIIIII.II.IIIIIIIII.II.,IIIIIII.[!)
(Oil Statistics compiled by The Oil Weekly. Houston. Texas)
Numbel' of reporting mills....................................
Production ................................................................
Shipments ..................................................................
Orders ........................................................................
Unfilled orders. Janual'Y 81..................................
Normal production ..................................................
Stocks. Janullry 31.. ................................................
NOI'mal Btocks ..........................................................
Shipments below normal production. .................
Actual production below normaL.......................
Orders below normal production........................
Stock. below normaL. ............................................
LUMBER
Following the year-end lull, considerable improvement
Was noted in the operations of pine mills in this district during January. Orders received exceeded both production and
shipments of lumber, being 87 per cent of normal production and were the largest since August last year. Shipments
of lumber increased from 61 per cent of normal production
52
98.042.194
89.980.618
101.228.567
58.616.191
116.219.586
295.282.403
825.259.864
26.288.973
20.177.892
14.991.019
29.977.461
feet
feet
feet
fcct
feet
feet
feet
feet-23 %
feet-17 %
fcct- 18 %
feet- 9%
Sltllllllllllllllllllllllltllllllllllllllllllllllllllllllllfllllllllll1111111111111111111111111111111111111111''''111110
BUILDING
Increased activity in building, as measured by the valuation of permits issued at thirteen principal cities of the
Eleventh District, was reflected during the opening month
of the year. The valuation of permits i~sued at these centers
in January amounted to $7,833,029 exceeding December
valuation by 2.9 per cent. In comparison with January of
last year however, awards this year showed a decrease of
i
20.2 per cent but it will be remembered that the volume in
January 1926, was exceedingly heavy. A sharp increase
will be noted in the number of projects begun in January
representing an increase in residential construction. As
compared to the previous month eight cities showed increases and five showed decreases in valuation of permits
issued.
(EJUlIlJlllllllllllllllllltllIlIlIlIlIlIllIlIlIlIlIlIlIlIlIlIllIllIlIllIllIlIlIlUIIIIIHIIIIIIUII1111111111111111111111"11111111 11111111
Amarillo...................................... ..................................
Austin .......................................... _............................ _.
Beaumont.......................................................................
Dallas .........._.................................................................
Ell Paso..........................................................................
FOI·t Worth...................................................................
Galveston.............................................. ........................
Hous ton ...... .. ....................................................... L......
Port Arthur..................................................................
San Antonio ... _........... .. .. ............................................
Shreveport.....................................................................
WUl'O"'............... ............................... ...............................
Wichita Falls..............................................................
Thtal............... ...............................................
[§
Janunry.1927
No.
Valuation
271
$1.022.840
27
27.150
147
187.919
827
412.624
49
32.485
299
912.271
171
586.662
517
8.213.816
115
92.904
258
805.746
206
210.400
37
109.085
88
220.177
2.506
$7.833.029
' 111111111111111111111111111111111 1 1111111111111111111111111111111111111111111111111111111111I1I1I1I 1 111I1l1I..(!l
January. 1926
No.
Valuation
79
$ 828.786
62
126.408
126
102.641
848
1.266.509
68
189.280
411
1.422.436
218
191.616
390
8.509.543
90
94.246
829
1.568.216
298
440.437
26
401.775
128
588.492
2.538
$9.812.283
Inc. or
Dec.
+211.0
- 78.5
+ 88.1
- 67.4
- 76.7
- - 86.9
+206.3
8.4
1.4
- 48 .5
- 52.2
+148.6
- 62.8
- 20.2
December. 1926
No.
Valuation
223
$ 771.825
18
10.2 40
105
574.008
284
874.260
65
64.157
239
977,468
173
69 .841
380
2.467.118
67
82 .423
220
1.159.890
182
149.343
14
23.186
148
890.780
2.008
. $7 .614.43 8
Tnc. or
Dec.
+ 82.5
+ 165.1
- 67.8
+ 10.8
- 49.4
6.7
+ 74 0.0
+ 30.2
+ 12.7
- 30.5
+ 40.9
+371.3
- 75.8
+ 2.9
11111111'1111111111111111111111111111111111111'1111111111111(111111111'I U 1 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111I11111I'1111I1I111111111"fu
j.
I
CEMENT
After declining for five consecutive months production of
Portland cement at Texas mills showed a slight increase in
January and was 16.1 per cent greater than production in
the same month last year. Shipments of cement after declining in November and December reflecLed a considerable
increase over both the previous month and the same month
last year. Shipments from the mills during January amounted to 365,000 barrels of cement as compared to 316,000
barrels in I>ecember and 308,000 barrels in January 1926,
representing increases of 15.5 per cent and 18.5 per cent,
respectively. Stocks on hand at the close of January were
3.8 per cent greater than stocks held at the end of December
but were 8.2 per cent less than those 011 hand January 31,
1926.
1::::::
·
'''~~~~.~~~;~:~'~~;;~::j~{r~i~':~t;:~~~;~~"m
Shipments from Texas
milIs .................................. 866.000
SLocks at end of month
at Texas mills ............... .461.000
808.000
+ 18.5
816.000
+ 16.5
502.000
-
444.000
+ 8.8
8.2
dJIIIIIIIIIIU'''IUIIIIIIIIIIII'UIUIIIIIIIIIIIIIIIIUUIIIIIIIIIIIIII'IIIII''''''l'IIIIIII"IIIIIIIIIIIIIIIIIIIIIJIII·1h
MONTHLY BUSINESS REVIEW
8
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federnl Reserve Board a s of February 25, 1927)
Industrial activity has been slightly larger since the turn
of the year than at the close of 1926, Seasonal liquidation
of reserve bank credit has been in usually large volume
owing chiefly to the inflow of gold from abroad, and conditions in the money market have been easy. Wholesale
prices have continued to decline.
PRODUCTION
I I
Output of factories was larger in January than in December, but smaller than in January, 1926 or 1925. Mineral
production, though somewhat below the December level,
continued in unusually large volume, reflecting the maintenance of production of bituminous coal, crude petroleum,
and copper. Manufacture of iron and steel, which was
sharply curtailed in December, increased in January and
February. Automobile output was increased considerably
from the unusually low level of production reached last
December, but the number of passenger cars produced since
the beginning of the year has been smaller than for the
corresponding period of the past four years. The textile
industries have continued active since December without,
however, showing the usual seasonal increase. Building
contracts awarded in 37 states during the first seven weeks
of the year were smaller in value than those for the same
period of 1926. Decreases have been largest in New York
and the New England, Southeastern and Northwestern states,
while increases occurred in the Middle Atlantic and Central
Western states. By types of building, contracts awarded for
residential and industrial building in January showed large
reductions as compared with December and with January,
1926, while contracts for commercial buildings were larger
than a month or a year ago.
TRADE
Retail trade showed more than the usual seasonal decline
between December and January. Sales of department stores
were in about the same volume as a year ago, while those of
mail order houses were 7 per cent smaller. Wholesale trade
declined in nearly all leading lines in January and was considerably smaller than a year ago. Inventories of department stores were reduced less than is customary and at the
end of the month were in about the same volume as in
January, 1926. Stocks of merchandise carried by whole·
sale firms increased slightly, but continued in smaller
volume than in the corresponding month of the previous
year. Freight carloadings declined by somewhat more than
the usual seasonal amount between December and January,
but, owing chiefly to heavier shipments of coal this year,
weekly loadings since the beginning of the year were larger
than for the same period of 1926. Shipments of merchandise in less-than-carload lots were also slightly larger than
last year; but those of most basic commodities were smaller.
PRICES
The general level of wholesale prices declined fractionally in January, according to the index of the Bureau of
Labor Statistics, considerable advances in prices of livestock, being somewhat more than offset in the total by
decreases in nearly all other commodity groups included
in the index. Prices of non.agricultural products, as a
group, declined to the lowest level since early in 1922. In
February there were decreases in the price of iron and steel,
non·ferrous metals, bituminous coal, grains, and hides, while
prices of cattle, sheep, cotlon, and gasol ine increased.
BANK CREDIT
Commercial loans of member banks in leading cities,
continued to decline during the four weeks ending February
16, although at a les~ rapid rate than in earlier weeks and
in the middle of February the volume of these loans was
about $270,000,000 below the seasonal peak reached in the
middle of November, though about $200,000,000 above last
year's level. Loans on securities also declined during the
period, while the banks investment holdings increased somewhat. The volume of reserve bank credit remained during
the four weeks ending February 23 near the low level
reached at the end of January. Liquidation of reserve bank
credit since the high point of last December has been in
excess of $500,000,000, the usual extent of this reduction
being due chiefly to the large inflow of gold from abroad.
Total bills and securities of the reserve banks on February
23 were about $200,000,000 smaller than on the corresponding date of last year. Easier money conditions in February
were reflected in a decline in the rate on prime commercial
paper from 4~ to 4 per cent after the first week of the
month.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
@FedFRASER