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MON THLY BUSINESS REVIEW
OF THE

FEDERAL RESERVE BANK OF DALLAS
c. C. WALSH
Chairman and Federal Reserve Agent

CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents

(Compiled Februar y 15, 1931)

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!olume 16, No.1

Dallas, Texas, March 1, 1931

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This copy is r elcnsed for publicat ion in aUernoon papers

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1

March 2

DISTRICT SUMMARY
'rHE SITUA'l'ION A'r A GLANOE

Elovonth Federnl Resorve District
January

Ohango from
Deoomber

1031

B~I~C810bits to Individual ooooun[s (at

17

Depart .. ·i ···· ····· ················ ···· ··

ReS?rv~g::nktt::'~n~n~~'m~~bci~ 'bn~k8 ~i' cI;ci' .

n~O:noD~'k "' :"" """ " "" " " " " "
8ull/o n ratIo at ond of month . . ....... .
o llIg permIt vnluntion nt larger conl~ . .. .
O~::~rola: ~n!lurC8 ~:~umber) . .. . .... ... . ... .
Oil proJ~c~io~l~bC8 ~nbilltlC8) . .. . . . . . ... . . .

~n~~r'~d~~O~I~~n~~'O)'~iIi,
j '(pc~ '~~";t ~i 'n'~r~"
) .... ..... ....... ... ...... .

1770,680,000
5,031,058
61. 0%

3,301,082
127

$ 1,951,081

23,340,000

65%

-

5 .7%
54 .0%

+ 30 .6%

+ 2. 4 poi nil!
- 3 2. 8~
+ 44. 3 0

+

-

1.5%
3.0%

+ 18.0

poinil!

d ~ mixed trend was in evidence in business an d industry
unng January. Department sLore sales reflec ted the usual
reasonal recession from the previous monLh and the decline
rom
a year ago was approximately the same as in Decembel'. Wholesale distribution was larger than in December
tl~t the gai~ was less than the usual seasonal expansion and
abi compa~'lson with a year ago was slightly more unfavort .e than 111 the previous month. Merchants continue to re10t
Pfrchases to actual requirements and collections have
Own lttle or no improvement. While reports from certain
quart
. d'
co fi ers In lCate that there has been an extension of the
of n l~~nt undertone because of the better physical condition
stri~f~Jculture and livestook, consumer demand is bein g rcd by the small cash reserves of the rural population.

b

:h

citi The val?ation of building permits issued at principal
after 111Ol'easing in December, refl ected a sharp decline
i
No anuary which carried the total below the low level of
in mber . The January valuation was 34, per cent less than
shi e cO,rresponding month of 1930. On the other hand, the
pments and new orders of lumber from mills in this dis-

jS,

;h

trict showed a sharp recovery frol11 the low level of Decem·
bel'. Petroleum production reflected a further decline as
compared to the previous month and was materially less
Lhan a year ago.
In no recent year has the opening period found the agricultural and livestock industries in a better condition from
a physical standpoint. There is a good season in the ground,
land preparation is more advanced than usual, planting
operations are being commenced early, and growing crops
generally are in good to excellent condition. Range conditions are fair to good throughout the district and indications
are that excellent grazing will be available early in the
spring. Livestock have wintered well and are improving
steadily. With prospects for excellent pasturage, livestock
should take on flesh rapidly during the succeeding weeks.
Tempering the good physical outlook, however, are the low
prices obtaining for agricultural and livestock products.
To combat Lhe effects of the low prices, farmers are showing
a grea ter disposition to raise their living at home and to
practice greater diversification as well as to reduce tlle costs
of production wherever possible.
The fin ancial situation reflected a further decline in deposits and an increased demand for Federal Reserve Bank
credit from the country banks. The daily average of combined net demand and time deposits of member banks declined from $810,023,000 in December to $798,354~000 in
JaI1 Uar y and in the latter month were $86,225,000 less than
a year ago. Federal Reserve Bank loans to member banks
amounted to $6,129,000 on Febl'uary 15, as compared to
$5,021,00 a month earlier, and $12,452,000 on the corresponding date a year ago. The heavy borrowings a year ago
were due largely to the large amount of funds being absorbed by the reserve city banks, whereas the borrowings of
those banks this year are very small.

BUSINESS
Wholesale
Trade

A renewed deman d for merchaI1dise at
wholesale made its app earance during
sonal .
. January, stimulated principally by seaser\' D~flu~nces. Wholesalers in the Eleventh Federal Reous e Jstr~ct reported appreciable increases over Lhe previdru month m the distribution of farm implements, dr y goods,
gs, and groceries, but a small decline in the sales of

hardware. Distribution continued to fall substantially short
of the same month a year ago, although drugs and farm
implements showed a more favorable comparison than they
did last month. The good physical condition of the agricultural and livestock industries is creating a more optimistic feeling on the part of both retailers and the consuming public, yet the small purchasing power is restricting the

This ublication was digitized and made available by the Federal Reserve Bank

of Dallas' Historical Library (FedHistory@daljrb.org)

MONTHLY BUSINESS REVIEW
distribution of merchandise. Merchants are, therefore making purchases ?n. a very c~nservative basis and are h~lding
orders .to a nummum. Pnces are showing more stability.
CollectIOns in most lines are still in small volume.
While the business of wholesale dry goods firms during
January was 31.7 per cent beLter than in December, the increase was not as large as usual, and there was a decline of
30.1 ~er cent from the sales volume of January, 1930. However, It should be remembered that a substantial part of the
~rop fro~ a year ago is due to the extensive price reductIons which have taken place. The opening of the spring
buying season in certain centers around the first of February, bro~g~t in some new buying but merchants generally
are restnctmg purchases to actual needs. Stocks on hand
were larger than on December 31, but showed a reduction
of 37.2 per cent from January 31, 1930. Collections came in
more slowly than they did during December.
Wholesale drug firms reported a fairly general increase
in sales volume during January. Distribution averaged 8.7
per cent larger than in December, and was only 6.7 per
cent below that of January a year ago. This comparison
with a year ago was more favorable than in any month
since October, 1929. Nevertheless, retailers are operating
conservatively, and continue to pla'ce their orders principally
for current requirements. Collections during the month evidenced an improvement, both in volume and in their ratio
to accounts outstanding.
There was a seasonal gain of 7.9 per cent in the demand
for groceries at wholesale during January, but the figures
show a drop of 18.4 per cent as compared to the same month
last year. Merchants pursued their same cautious buying
policy. Business was ,h ampered somewhat by bad roads in
some rural sections. Collections decreased 20.4 per cent
from the amount reported in December.
A seasonal improvement was in evidence during January
in the wholesale farm implement business in this district.
Although sales of reporting firms were 62.1 per cent smaller
than in January last year, they registered an increase of
57.2 per cent over the low level of December. Farmers are
restricting purchases to actual needs. Collections continued
slow during the month.
The January sales of wholesale hardware firms in this

disLrict were 9.7 per cent less Lhan in December and 27.8
pel: cen! less than in January a year ago . Business was fairly
a~tlve m North and East Texas during the month, being
aIded somewhat by the development of new oil fields in the
East CenLral part of the State. There was a further decrease
in collections.
CONDITION OF WHOLESALE TRADE DURING JANUARY, 1031
PorcontngQ or inorcnsc or decreaso in-

Groceries ....................
Dry gooda .............. .. ...
Farm imillemellts.. .. . . . . . . . ..
Hardware .................. .
Druga.......................

Net Sales
Jnnuary, 10al
compared with
Jan,
Dec.
lOaD
loaD
- 18.4 + 7.0
-30 1 +31. 7
-62: 1 +57.2
-27.8 - 0.7
- 6 .7 +8.7

Stocka
January, 1981
compared with
Jan,
Dec,
1080
1080
-18,0 + ,8
-37,2 +11,8
+ 3, 1 + 5,6
+ 2,5 + 1.0
- 15 ,4 +.4

Ratio of cOllcotiona during Jan.
to accounts and
notes ontstanding
011 December 31
65,8
22.4
3,0
31. 0
40.4

The volume of business transacted by dep artment sLores located throughout the
. Eleventh District declined seasonally in
January, and agam reflected a substantial recession from a
year ago. Sales averaged 53.7 per cent lower than in Decem'
bel', and 9.0 per cent below January, 1930. Reports indicate
that the reduced price sales featured during January stimulated purchases noticeably during the first half of the month,
but the persistence of cloudy, rainy weather and the unusually high temperatures during the latter part of the month
greatly curtailed the demand for winter merchandise even
at the lower price levels.
'
Retail
Trade

Stocks of merchandise on hand at the end of the month,
valued at retail prices, showed a seasonal reduction of 6.5
per cent from those a month earlier and a decline of 11.3
per cent from a year ago. While stocks held on December
31 were the lowes.t of any month in several years, the decline
from a year ago IS larg~ly ~ccounted for by. the lower price
level. Due to the reductIOn In stocks the ratIO of stock turn'
over in January this year exceeded that for January, 19301
amountmg to .24, in January, 1931, as against .23 in Janu·
ary a year ago.
Coll~ctions evidenced a slight decline during the month.
The ratIo of charge accounts collected in January was 32.1
per cent as against 32.8 per cent in December and 35.3 pel'
cent in January, 1930.

BUSINESS OF DEPARTMENT STORES
Total Snloa (Percentage):
January, 1931, compared with Januar~ 1030 , , . , , .•. , ' ... , , ... , ... , ..
January, 1931, compared with Decem r, 1930. , . .. , , .. , , .•.. , ' ... , .:: , . : : : : :::: : : : : : : : : :: : : :: :
Crodlt Snloa (Percentage):
January, 10Sl, compared with Januar~ 1030 ... ... ...... " ... ' , ... , ' .
January, 1931, compared with Decem r, 1080, ............ , , . . " ... , .:: ::::::: ::::::::',: : : ::::
Stocks (Percentage):
January, 1931, compared with January, 1930 .. , . " . ..... , , .. ,.' , .. , ... ' ... , , .• '
January, 1031, compared with December, lOaD" ., , .. ' , .... , , .. , ... , , ........ . .. :::::::::::::::
Stock turnover (Rato):
Rate 01 atock turnovorln January, 1030... , ... , , .. , , , .. , .... , , ... , , , , , , , .. , , .. . . , ... , ... . , , ...
Rate 0 atock turnover in January, 1931... , ... , , . , , , .. , , .... , ... , , .. , , .. , , .. , . , , .. , ... , . , ... , ,
Ratio of January collcctloDB to accounts receivable outstanding January 1, 1031 . .... , .. , ... , .... , ... , ..

According to the statistics compiled by
R. G. Dun & Company, the business
mortality rate in the Eleventh Federal
Reserve District reflected a sharp increase in January. Failures for the month totaled 127, which was the largest num-

Commercial
Failures

DaUna
- 15.4
- 53 .1

Fort Worth
- 2.7
- 50 ,7

lIouatoll
- 12.0
-51.4

Otbera

-17,5
-51.6

- 8,3
-61.6

- 11 ,7
-50,1

-

-40,2

- 10.4
-52, 5

-

0.4
7,1

+ 3.3
+ 2,3

-10.8
-14 ,0

- 15 ,7
- 0.0

- 11 ,3
- 0,5

,25
,23
28,0

. 18
31.2

.to

.23
,24
30.2

,25
,28
30,2

,24

-

4,5

-40.5
2,5

Total Diatriot
- 0,0
-53 .7

.23

32.7

ber reported for any month since January, 1927. The liabili·
ties of defaulting firms showed only a slight increase, being
$1,954,,681 in January as compared to $1,925,910 in Decem'
ber, and $739,826 in January a year ago.

MONTHLY BUSINESS REVIEW

8

AGRICUL TURE
Crop Conditions

The first six weeks of the new year proved
very favorable to the agricultural interests of this district. Timely rains have
maintained an excellent surface and subsoil season in the
ground, and except in a few areas where the soil has been
~oo wet, farm work is more advanced than usuaL The plantIng ?f spring gardens and truck crops is general in many
portl?nS of the district and the seeding of row crops is progreS~I~g in the southern part of Texas and in portions of
LOlllslana_ Wheat and oats have grown rapidly and their
condition is mostly good to excellent_ Farmers in many areas
are now seeding the spring oat crop_ The adverse factors
are _~ainly potenLial in their nature_ There has not been
SUffIcIent cold weather to kill insect life, which may mean
? considerable increase this year in damage to crops from
Insect activity_ Fruit trees and tender vegetation are abnormally advanced and should a severe cold wave occur in the
near future, serious damage to these crops would result.
_ The South Texas truck crops made a further marked
Impro~ement during January. While the precipitation was
ex~esslVe at times, the weather generally was favorable. The
SpInach crop made a remarkable recovery during the month,
~he condition figure advancing from 67 per cent on January
to 84 per cent on February 1. The condition of other
brops gained 2 to 10 points. All crops are in a considerably
eLter condition than a year ago, as the extremely severe
weather in January, 1930, materially reduced the condition
crops. The producLion of beets, carrots, spinach, and cabap;e will greatly exceed that of a year ago.

hf

CONDITION OF COMMERCIAL TRUCK CROPS IN 'l'EXAS
Beota..
Broccoli .. .. ......................

Fob. 1. 1031
8"

85

t~L:>:: ~

Jlln. 1. 1031
70
70

Fob. 1. 1030

85

58

82

63

07
86
82

55
76

~,~ra,,:,bo;;iCs .... .. ............ ....
~~
urnlpe . . .... .. .. . .. : : : : : : : : : : : : : :
86
SOURCE: United States DOPllr~mont of Agrioulture.

82
77

40
57

76

f. .According to the Department of Agriculture, Texas

h~ItS and vegetables are moving in large volume. While

IPdents declined somewhat toward the middle of Febru~:y . Ue to pr~ce recessions on some commodities, they were
nSlderably 111 excess of those a year ago when movements
Wer e l'Igh t on account of the damage resulting from the
l~veh' freezes. Shipments during the week ending February
d . ~ IS year totaled 1,887 cars as compared to 1,286 cars
f Iln~g the same period last year and the total movement
1~\t e current season amounted to 13,584. cars as against
, 58 cars during the corresponding period of the previous
season.

S

11 An important feature of the agricultural program for

,Ie curr~nt season is the widespread diversificaLion which
heports 1I1dicate will be practiced this year. The living at
,ome movement is gaininO' headway and farmers are showto
.
Ing a d'ISpoSltlOn
. "
to expand
the acreage p 1ante d to mmor
crops,

LivestocI1Ic
Livestock and their ranges rna de f avort d
able progress during the past month
tIn er the stimulus of ample moisture and mild temperat?res. The condition of cattle ranges in pra,ctically all secIons of Texas showed some improvement with the largest

gains being shown in West, West-Central, and Central Texas.
The Department of Agriculture reported that South Texas
is the most favored area with the February 1 condition at
80 per cent of normal, which is, with one exception, the
highest figure for that date since 1924.. Feed supplies are
generally abundant in most areas as the open winter has
enabled caLtle to go through the winter with liLtle supplemental feeding . Ranges are now greening and if no unusually cold weather occurs, early and abundant spring
grazing is assured. The condition of Texas cattle on February 1 was 79 per cent of normal, the same as during the
preceding three months, but 5 points above the condition
obtaining a year earlier. Cattle generally have already begun to mend and old steers in South Texas are getting fat.
The condition of sheep and goat ranges in Texas was placed
at 82 per cent of normal on February 1, which was 6 points
higher than a month ago and 13 points above the condition
at this time last year. Grass and weeds are growing rapidly
and are furnishing good grazing in most areas. In fact, the
Department of Agriculture reported that the present condition is well in line with other good years and that moisture
conditions have seldom been better. The condition of sheep
gained 3 points during the month, while that of goats remained unchanged. With the continuation of present conditions, prospects are favorable for a good lamb and kid crop.
In view of the fact that range and livestock conditions usually decline about 2.5 points during January, the progress
during the past month may be considered very favorable .
This is particularly true as both ranges and livestock
throughout the State were in very poor condition when the
fall rains set in last October.
The condition of ranges in New Mexico showed no
change during January but on February 1 was 7 points below
that a year earlier. The condition of cattle and sheep gained
1 point during the month. Range feeding is fair to good
but stock water is short in a few places. The 90 per cent
condition of ranges in Arizona on February 1, while 2 points
lower than a month earlier, was 5 points higher than on
that date in 1930. The condition of cattle and sheep showed
no change during the month. Cattle and sheep generally
have wintered in good condition.
The Department of Agriculture estimated that 4,1,600,000
pounds of wool were produced in Texas in 1930 as compared Lo 41,300,000 pounds in 1929. While the fleece weight
in 1930 was lighter than the previous year's clip, the increase
in the number of sheep shorn more than offset the lighter clip.

Livestoclc

The accompanying table reflects the numbel' and value of livestock on farms in
Texas, Louisiana, and New Mexico on
January 1, 1931, with comparative figures
for the same date in 1930. These statistics, which were compiled from the report of the Department of Agriculture,
indicate clearly the sharp decline which occurred in livestock values during the past year. Every class of livestock
shared in the decline, but it was the most drastic in the case
of sheep even though values had suffered a substantial recession in 1929. Despite the decline in prices, the number of
sheep on farms showed a further increase dming 1930.
The value of cattle also reflected a heavy decline. While the
number of all cattle on farms on January 1, 1931, in the
above states, was practically the same as a year earlier, the
number of milk cows increased, indicating an expansion in
the dairy industry. The price of swine held up better than

Values Decline

MONTHLY BUSINESS REVIEW

4

that for any other class of livestock. This may be attributable
in part to the fact that the supply in this district has been
declining since the beginning of 1928. The decline in the
value of all classes was relatively larger in Texas than in
Louisiana and New Mexico.
NUMBER AND VALUE OF LIVESTOCK ON FARMS AS OF
JANUARY I, 1930, AND 1931
Number
(OOO's omitted)
TEXAS
1931
1930
MuICB ...............
1,001
951
HorsCB ..............
602
661
1,003
Milk COWB ...........
974
All enttle .... . .......
5,563
5,563
1,028
Swine ... . ..... ...•..
884
6,050
5,550
Sheep ..... .... ......
3,305
3,117
Goats ... ...... . .... .
LOUISIANA
Muloo ......... ......
171
171
02
07
Horsoo ...... ..... ...
212
200
Milk COWB ...... .....
505
All enttle ......... ...
013
415
304
Swine .. .... .........
115
Sheep ........ ..... ..
118
NEW MEXICO
34
34
Muloo ............ ...
142
150
Horeoo ..............
67
MilkeoWB .:.. .......
68
1,045
1,045
All enttle ............
73
Swine .. ..... .. . . ....
66
2,527
2,780
Shoop ........ .... ...
SOURCE: United States Dopartment of

AV:~~~e~~ce
1931
1930
$54.00 S71.00
35.00 45 .00
30.00 56.00
24.20 37.90
8.20
0.70
4.10
0.00
3.05
4.00

Total Valuo
(OOO's omitted)
1931
1930
S 51,383 S 70,704
21,008
30,073
54,544
30,108
210,998
134,754
7,210
9,074
24,774
38,527
10,080
15,273

84.00
51.00
47.00
31.10
9.10
3.40

12,400
4,124
7,632
14,063
2,890
322

14,353
4,029
0,082
18,403
3,783
301

37.00 46.00
28.00 33.00
50.00 65.00
30.40 40.60
0.40 10 .00
4.80
7.00
Agriculture.

1,274
3,027
3.400
31,702
019
13,290

1,575
5,013
4,a55
42,386
704
20,031

73.00
45.00
30.00
22 .00
7.40
2.70

The supply of cattle and calves at the
Fort Worth market during January wae
considerably smaller than in either the
previous month or the corresponding month last year. The
Movements
and Prices

arrivals of hogs, while substantially larger than in December, were fewer than in January last year. The receipts of
sheep were larger than in either comparative period.
During the past thirty days, there was a reslricted demand for practically all classes of cattle and prices worked
to lower levels. A steadier tone, however, was in evidence
toward the middle of February. The hog market followed an
uneven course, with the trend of prices downward. Sheep
and lamb prices remained fairly steady.
FOR'r WOR1'H LIVESTOCK RECEIPTS
(Number)

Cnttle .......... .
CalvCB ......... .
Hoga . ...... . .. . .
Sheep .......... .

Janunry
1031
40,704
17,371
25,712
35,908

January
1930
51,716
22,884
28,584
33,815

Cha~~rovcr

- 10,952
- 5,513
- 2,872
+ 2,093

Deccmber Chango ovor
1930
Month
48,508
- 7,834
27,000
- 10,238
16,806
8,846
20,050
6,840

+
+

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundred-weight)

Beef steers .............................. .
Stooker steers ....... .. ....... . ... .. .. .. . .
Bulcher eoWB ............... . ........... .
Stooker cows ................ . ........... .
CalvCB ......... . ................... . .. ..

~:t:.:::::::::::::::::::::::::::::::::

Janunry
)9S1
S 0.40
7.50
5 .25
4.00
8.50
8.25
5 .50
8.00

Jnnuary
1930
$11.75
11.75
10 .50
5.00
12.00
10.50
9.50
13.25

December
1930
S11 .25
7.75
5.35
5.35
8.50
8.40
5.50
7.00

FINANCE
An increased demand for Federal Reserve
Bank credit has been in evidence since
the turn of the year. Standing at $4,34.2,000 on December 31, Federal Reserve
Bank loans to member banks showed a gradual expansion
during the first six weeks of the new year and amounted to
$6,129,000 on February 15. While reserve city banks have
gradually reduced borrowings, the decrease has been more
than offset by the increased demands of country banks. Bills
bought in the open market reflected a substantial decline,
the total being only $2,488,000 on February 15 as compared
to $5,831,000 on January 15, and $14,255,000 on the corresponding date in 1930. While the reserve deposits of mem:her banks rose $2,575,000 during the past 30 days, they
were still $7,724,000 less than a year ago . The return flow
of currency from circulation has been in substantial volume,
but it has been smaller than usual at this season. It should
be borne in mind, however, that Federal reserve note circulation did not show as large a seasonal expansion as usual
last fall and that the present circulation is considerably
below the low point reached in the summer of 1930.
Operations of
the Federal Reserve Bank

CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)

Total cneh rCBervCB ..................... ..
Discounts ror member banks ... . ......•....
Other bills diseounted .................... .
Bills bought in opon market ...... . ... .... .
United States sBcuritiCB owned ........• ....
Other investmonts . . . .... .. .......... .... .
Total enrning aBBets . .... . .. ............. .
Member banke' rOSorve deposits ..... ..... . .
Fedoral rCBCrve notes in notual ciroulation .. .

Fob.15,
1931
- $57,405
6,129
134
2,488
20,437
7
38,195
00,182
27,109

Fob. 15,
Jan.15,
1931
10ao
S54,830
S63,990
5,020
12,453
2
3
5,831 ' , . 114,255
20,437
25,666
•
7
,. I '7
40,207
52,384
57, 007 1 , 67,006
I '40,468
20,844

A furth er decline in loans but an increase
in inveslments and deposits were the outslanding features of the reports of member banks in selected cities during the
five-week period ending February 11. The
investmenls of these banks in United States securities on
February 11 were $4.,728,000 greater than five weeks earlier
and $4,24.1,000 larger than a year ago. Holdings of other
stocks and bonds declined $1,515,000 between January 7
and February 11, but on the latter date were $10,332,000
greater than on February 12, 1930. Loans on securities wer ll
reduced $3,065,000 during the period and all other loans
declined $1,929,000. Total loans on February 11 were $44,
54,8,000 less than on the corresponding date a year ago. The
combined net demand and time deposits of these banks rose
from $4.15,687,000 011 January 7 to $426,536,000 on February 11, but on the latter dale they were $4,,797,000 beloW
those on February 12, 1930. Their borrowings at the Federal Reserve Bank stood at $350,000 on February 11 as
compared to $1,14,0,000 five weeks earlier and $6,303,00 0
a year ago.
Condition of
Member Banks
in Selected
Cities

CONDITION STATISTICS OF MEMBER BANKS IN SELEOTED CITIES
(J n thousands of dollars)

United Stat.CB soouritiCB owned .......... . . .
All othor stooks, bonda, and securities owned.
Loans on aeeurities ... . .................. .
All other loane ........................ . . .
Total loans ............................. .
Nel demand depoelts ... .. ......... . .... . .
Time deposits .. . .... .. .................. .
Rooerve with Federnl Rooerve Bank .. ... .. .
Bills payable and redisoounts with Federal
RCBorvo Bank ................ . ........ .

Feb.11,
19S1
S 67,987
51,155
91,1 tl
224,500
315,707
274,852
151,684
32,105

Jan.7,
1931
S 03,250
52,670
04,176
226,525
320,701
268,112
147,576
32,890

Feb. 12,
1030
, 63,746
40,823
109,298
250,057
360,255
285,700
145,543
32,128

350

1,140

6,303

MONTHLY BUSINESS REVIEW
Deposits of
Member Banles

Average deposits of member banks in
this district during January reflected a
further recession from the level of the
preceding month, and amounted to $798,354,,000, as against $810,023,000 in December, and $884,579;000 in January a year ago. Figured on a percentage
baSIS, the decline from the previous month was 1.4, per cent
nd that from January, 1930, was 9.7 per cent. The largest
becrease was shown in the net demand deposits of country
.anks. The only increase over December occurred in the
tIme deposits of reserve city banks which rose $1,357,000
to $141,257,000.

sponding date a year ago.

Debits to
Individual
Accounts

The volume of debits to individual accounts during January at banks in the
principal cities of the Eleventh District
amounted to $770,689,000 reflecting a
seasonal decrease of 5.7 per cent from the total of the preceding month. This figure compares with $932,053,000 in
January, 1930, the reduction from a year ago amounting
to 17.3 per cent. With the exception of Tucson, Arizona, all
reporting cities participated in this decline. On the other
hand, eight of the seventeen cities were able to show an increase as compared to December.

d

DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)

DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)

Combined Total
Reserve City Banks
Country Banks
Net demand Time Net demand 'rime Net demand Time
deposits deposits deposits dellosits delJosits deposits

.. . . .
J~ab"
., 1030.
10aO. . ....
A or., 1030.. . ...

M;ril, 10aO......

Jay, 1030......
e, 1030. .. ...
/r
AU y, 1080.... ..

&,g.,

oPt.,
Not.,
Dov.,
J cc.,
an.,

1030......
1080......
19aO ......
1080......
1030. .....
1031.. ....

S650,110
655,119
630,586
630,020
628,282
603,020
591,565
570,002
502,530
503,126
588,534
574,004
565,388

$225,460
232,758
220,358
237,274
241,420
244,026
240,952
241,260
237,595
237,045
239,453
235,119
232,066

$270,051
268,197
260,635
271,647
260,058
260,854
261,127
256,176
262,310
265,782
266,706
262,124
258,313

$131,152
136,lll
132,082
138,080
142,181
143,753
142,482
141,675
180,040
141,153
142,250
130,000
141,257

$388,150
386,022
369,051
858,382
353,324
342,166
330,438
322,916
330,220
327,344
321,738
312,780
307,075

S 04,317
06,647
06,426
98,294
00,248
100,273
08,470
90,594
07,655
06,702
07,203
05,219
01,709

Abilono.........
Austin..........
Beaumont.......
Corsieanll.......
Dallas.. .. . .. ...
EI Paso.........
Fort Worth......
Galveston.......
Houston.........
Port Arthur.. .. .
Roswell.... .....
San Antonio.....
Shroveport.. .. ..
Texarkana'......
Tueson..........
Wuco...........
Wlohita Falls....

Accep{)(mce
Marleet

Total acceptances executed and held by
banks in this district reflected a somewhat
seasonal decline during January. The
iggregate on the last day of the month amounted to $6,74".001, as compared to a volume of $6,521,161 a month
earher, and $8,159,595 on January 31 last year. An increase
ovel: the previous month was shown in the acceptances based
~n Import and export transactions, which rose from $2,11,309 on December 31 to $2,4.12,295 at the end of January, but this gain was more than offset by a decline of the
banks' acceptance liability on aocount of domestic shipments and storage of goods. The volume of outstanding ac$~ptances based on the latter classification amounted to
,761,706 on January 31, as against a total of $4,309,852
~ the last day of December, and $5,307,04.1 on the corre-

--

6

January

January

1931
S 7,660
18,702
25,023
6,084
105,534
31,845
04,917
27,562
172,341
0,221
4,030
78,409
32,485
12,789
15,712
17,451
20,015

1030
$ 10,641
20,553
27,503
7,091
240,792
42,338
101,031
37,991
200,468
11,850
4,412
83,674
40,125
16,106
12,633
20,557
28.808

Peroontago
ohange ovor
Year

Peroentage
Decembor ohango over
1030
Month

-27.0
- 0.0
- 0 .3
-12.6
- 21. 7
-24.8
- 6.0
-27.5
-16.5
-22.2
- 8.7
- 6.3
-38.0
-21. 0
+24.4
- 15 . 1
-20 .3

$ 7,805
10,002
24,781
5,860
228,246
32,948
84,510
34,268
103,511
0,406
4,550
82,080
30,735
10,684
13,021
15,524
10,546

- 1. 7
- 1.6
+ 1.0
+10 .2
-14.3
- 3.3
+12.3
-19.6
- 10.0
- 2.9
- 11 .6
- 5.5
+ 5.7
+10.7
+20.7
'+12.4
+ 2.4

Total..... $770,689
$932,053
- 17 .3
$817,485
- 5.7
·Inoludes tho figures of two banks in Tcxarkana, Arkansas, looated in the Eighth
Distriet.

Savings
Deposits

The savings deposits of 84 reporting
banks aggregated $151,436,104, on January 31. This figure represents an increase
of 2.3 per cent as compared to the same date last year, but
it shows a decline of 1.1 per cent from the volume reported
on December 31. The number of savings depositors at 77 of
these banks increased during the month and amounted to
313,Oll on January 31, as against 310,551 on the last day
of the previous month, and 308,806 at the end of January
last year.

SAVINGS DEPOSI1'S
Numbor ef

~cnllmollt
IIlIl\s
EIPIl/!'"
. .... .. .... . ... ..
Fort~' th· .............. ·
Galv08t~~ ................
Rouston .................
Port Artit.. ·· · · ·· · ...... · ··
San Anto '!r . ..............
Shreve :to ...............
Waco pO ••••.••••••.••.•
Wiehita 'F '1'1' ....... •. . .. . .
All ethers n s ..............

........... ......

...... .. .........

R~~~~lg
4'
4
2
2
3
11'
2
7
4'
4
2
30'

January 31 , 1031
Number of
Amount of
Savings
Savings
Depooitors
Deposits
5,527
65,105
10,060
20,012
12,852
74,734
'1,822
30,168
20,784
10,408
3,705
38,844

$ 2,543,683
26,576,733
5,407,364
7,607,30l
7,052,759
35,083,700
1,730,438
23,763,250
13,327,274
6,462,080
1,538,016
10,253,647

January 31, 1030
Amount of
NlUnber of
Savings
Savin~s
DeposIts
Depooitors
5,608
S 2,443,605
68,542
111,080
18,258
13,504
60,063
4,690
37,253
21,406
0,008
3,701
40,384

5,741
64,322
16,057
10,391
13,648
74,060
4,888
38,707
20,658
10,400
3,710
38,817

+ 4.1
+ 4.5
- 10.6
+ .6
- 1.7
+ 5.3
+ 1.3
+ 4.0
+21.1
- 0.2
- 0.1
- 6.4

25,435,430
6,147,768
7,658,765
8,088,033
33,320,086
1,716,555
22,840,007
11,006,078
7,118,588
1,691,707
20,568,077

-308,806
--

Dcoembor 31, 1080
Numbor of
Amount of
Savings
Snvin~s
Depositors
DeposIts

Peroentage Change
Over Year in
Savings Deposits

---

Percentage Changc
Ovcr Month in
Savings Doposita

$ 2,682,198
27,268,242
5,655,716
6,380,088
8,064,230
35,643,885
1,679,356
23,000,050
13,570,581
6,070,335
1,582,762
10,742,181

Total.... .....
84
313,011
$l51,436,104
$148,040,674
+ 2.3
310,551
$158,040,533
·Only 3 hanks in Beaumont, 10 banks in Houston, 3 bauks in Shroveport, and 35 banks in "All others" reported the numbor of savings depositors.

Dallas

oha;i~u:,~~

Rato
.'::::: :::::::::::::: :::: :::::::::: :::::::::::::::::::::::::::
nato on ogtetl °ln commodity paper secured by warehouso recoipts, eto ............. . .
_
n 0 onne ...... .. ................... , . .................. , ..... .. . . .

4- 7
5-6
5- 7
6-8
6-7

6

-1.4
-

1.6

-

.6
1.8
7.3
.3
2.5

-

1.1

+ 3.6

+

Prcvailing Rates:

FEBRUARY DISCOUNT HATES

Raterc'd1"rscd tcustomcrs on primo commeroial paper suoh as is nOW oligible for
nato oh sool:e
u~dcr the Federal Roservo Aet ..... ...... .. . ...... ..... ........ . .
nate oualge on oans to other banks scoured by bills rcoeivllblo ........... . ...... .
inoluJ-anB SCOured by primo stook o<ohange or other ourront collateral (not
Ding Io~ns plaoed 10 other markets through correspondont banks):

- 3.4
- 2.5
- 2.8
+20.6

Et 1'1180

Fort Worth

Houston

San Antonio

6- 8

5YrO

6-8
5-6

5-6
5-6

5- 6
5- 6

5*6

6- 8
6- 8
8
6-8

6-8
6-8
6-8
6-8

5-6
5-6
5-6
7-8

6-8
6-8
6-8
6-8

6- 8
6--8
6-7
8

Waco
6-8

6

MONTHLY BUSINESS REVIEW

INDUSTRY
Cottonseed
Products

The production of hulls during January
at cottonseed oil mills located in Texas
reflected a slight increase over January,
1930, while all other operations evidenced a decline as compared to both the previous month and the corresponding
month last year. Activity at all United States mills also
showed a noticeable recession as compared to both periods.
During the six months of the present season, however, operations of the latter mills, with the exception of linters produced, continued to be on a larger scale than during the
same period of the preceding season. Stocks of seed on hand
at United States mills at the close of January were less
than those held a year ago or a month earlier, while at
Texas mills they were larger than on January 31, 1930. Inventories of crude oil at Texas mills showed a noticeable
decline as compared to a year ago. Stocks of all other
products at both Texas and United States mills were greater
than on the same date last year.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States
August 1 to January 31 August 1 to January 31
This Season Last Season 'I'his Season Last Senson

Cottonseed received at mills
1,180,222
1,185,572
(tons) ......... . .... . .... ..
4,290,028
4,207,509
1,029,176
1,033,940
3,725,1l3
Cottonseed crushed (tons) . . ...
3,579,957
176,749
171,747
620,231
Cottonseed on hand (tons) .....
757,874
Crude 0\1 produced (pounds) ... 300,535,534 301,405,3131,125,462,8861,106,472,748
483,998
482,223
1,685,778
1,590,901
Cake and meal Ftroduced (tons)
Hulls produced tons) .........
289,521
276,001
1,032,086
984,558
Linters produced (running
160,828
217,250
647,089
bales) . ....... . ........ .. •.
737,719
Stocks on hand January 31:
Crude oil (pounds) . ... . .... . . 10,567,689 30,383,178 80,757,112 77,782,083
80,209
Cake and meal (tons) ........ .
65,505
343,665
206,452
60,255
Hulls (tons) .. ...............
58,070
153,862
130,945
97,751
Linters (running bales) . . .... . •
84,546
346,855
263,900

While the consumption of cotton and the
production of cloth at Eleventh District
textile mills were on a larger scale than
in the previous month the demand for cotton goods declined
during January, and stocks held at the end of the month
were larger than those a month earlier or a year ago. The
production of reporting mills amounted to 893,579 pounds
as compared to 800,765 pounds in December, and 1,157,844
pounds in January a year ago. These mills consumed 2,053
bales of raw cotton during the month as compared to' 1,777
bales in December, and 2,4.54 bales in January, 1930.

Textile
Milling

TEXTILE MILLING STATISTICB-'fEXAS

Number bales consumed . ..... ..... ........
Number spindles active . .. ................
Number pounds cloth produced . . . . ....... .

January
1931
2,053
65,698
803,570

January
1930
2,454
00,428
1,157,844

December
1030
1,777
64,553
800,765

Cotton growing states:
Cotton consumed ...........
On hand January 31 inConsuming establishments.
Public storage and comprCBBes .... . .. ..... ....
United States:
Cotton consumed ....... ....
On hand January 31 inConsuming establishments.
Public storage and com·
prCBBes .. . .............

January
1030

350,879

450,620

1,066,343

2,568,749

...... ..
.. ......

1,206,748

1,308,117

7,542,445

5,168,560

454,188

576,160

2,466,432

3,314,345

........

... .. ...
. .......

1,613,475
I I
7,930,454

5,404,731

........

The movements of cotton through the
ports of Houston and Galveston showed a
further seasonal decline during the past
month, but at Houston both receipts and exports reflected
an increase over January, 1930. Stocks on hand at both
ports on January 31 were 38.9 per cent greater than on the
corresponding dale of 1930, but were 5.7 per cent less than
those held at the close of the preceding month. ToLal exports
of cotton from the United States amounted to 624,631 bales
during January, which represents a decline of 18.4 per cent
from the previous month and 14.3 per cent from January,
1930. During the first six months of the current season ex·
ports aggregated 4,571,227 bales as compared to 4,891,012
bales in the same period of the preceding season . The tak·
ings of cotton in January by the United Kingdom, Italy, and
Germany were considerably smaller than in either the previ·
ous month or the corresponding month last year, whil~ ex,
ports to France and Japan were substantially larger than in
.
either of the preceding periods.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bnlce)

Receipts ... ... .. . .....•......
Exporlll ................ . .. . .
Stocks, January 31 . ......... .

January
1031
111,366
160,838

Jalluary
1030
127,131
196,515

Auguat 1 to Jalluary 31
'I'his Senson Last Season
l,ilOO,065
1,602,803
829,884
1,320,140
664,383
430,345

COTTON-GALVESTON STOCK STATEMENT
(Balce)

For Groat Britain .........••.. .. ... .. . •• ........ . . .. .
For Frallco ........... . .. . . .......... . ...... .. . .... . .
For other foreign porls ... . .... .. . .. ..... .... . . ... . .. . .
CoastwiBe porlll ..... . .. ... .. . .. .. • ..........•.....• ..
In comprCBBce and depots ....•......•.. . . .. ......... ..

Jan . 31,
1031
5,700
0,200
20,000
2,000
620,883

Jan . 31,
1030
9,500
6,000
38,500
3,000
382,348

Total. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

661,383

430,348

COTTON MOVEMENTS THROUGH THE POll'I' OF HOUSTON
(Balce)
January
1031
156,191
215,060

January
1930
129,614
196,231

August 1 to January 31
'fhis SellSon Last Season
2,628,802
2,419,609
1,557,700
1,337,945
1,424,090
1,064,315

August 1 to January 31
This Season Last Season

.... ... .

........

Cotton
Movements

Uecoipts . . . . . . . . . . . .. . ..•. . .
Exporlll. . . . . . . . . . .. . . . . . . .• .
Stocks, January 31. ... . ... . . .

COTTON CONSUMED AND ON HAND
(Bales)
January
1931

The domestic consumption of cotton in the United States
during January totaled 454.,188 bales as compared to 4,06,207 bales in December, and 576,160 bales in January, 1930.
Consumption during the first half of the present season averaged 25.6 per cent less than during the same period of the
previous season. Cotton on hand in consuming establish·
ments on January 31 was less than that held at the close of
the preceding month or the same month last year.

1,825,708

SPOT COTTON PUTCES-(Middling Basia)
(Cenlll per pound)

Newyork . .... . ......... . ...... . . ..... . .
New Orleans . .....•........ ..•......... . .
Dallas ...... . ... . .... .. ............ ... . .
HOuBton .... ..... ....................... .
Galveston . . .. ......... . . ......... . ..... .

January, 1931
High
Low
10.60
10 .00
10.16
9.66
0.70
9.30
10 .20
0.80
10.25
9.90

Feb.14,
1931
10.95
10.67
10.15
10.70
10 .75

MONTHLY BUSINESS REVIEW

7

SEI,SON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNI'rED STATIES PORTS-(Bales)

OIL PRODUCTION-(Barrcls)

August 1 to January 31
This Senson Lnst Senson
~ceoiJl"'.... .. .. . .. . .... ...... . .••.....•. . ....•...... 7,581,463
7,416,400
XpOr"': ¥nitcd Kingdom. .... .. .. .. .. .... .. ..... ....
800,144
088,240

~rl~~:~

: ::>

~I other oountries .................. ".......
If~l.roreign por"'. . . . . . . . . . . . . . . . . . . .. . . . . .

Stooks t
n a

"~~!H

North 'r oxns ...... . ....... " .
Contral West 'l'oxna ......... .
Enat Contral Toxas ..... . .... .
Toxna Conatnl. ... . ..... " . " .
Southwest Toxna ............ .

"lim

402,761
4,571,227
lilted States por"', January 31. . . . . . . . . . .. 4,218,250

257,240
4,801,012
2,402,471

Petroleum
Actual production of crude oil in the
.
Eleventh Federal Reserve District conhnued its downward course during January, and the total
~or the month amounted to 23,34,9,000 barrels, being 876,bOO barrels smaller than in December, and 4,,613,100 barrels
low the output of January last year. With the exception of
t ~ recently discovered areas in East Texas, all portions of
thIs district shared in the decline. Field activity likewise
Was curtailed somewhat, and resulted in a considerable decrease in the amount of new production. Of the 466 wells
~o~plete.d during January, 203 were producers having an
TIltlal YIeld of 206,661 barrels, while in December there
w~re 514, new wells completed, of which 220 were producers
wIth a flush production of 267,969 barrels.
I Despite the energetic development that is taking place in
t 1e new fields of East Texas, the combined daily output of
al~ Texas fields in January registered a further material curtaIlment from the preceding month. During January the
~vge7rage production was 671,4,87 barrels, as compared to
,339 barrels in December and 853,110 barrels in January, 1930.
.
Fewer wells were completed in North Louisiana during
!anuary than in December, but there was a substantial gain
~h ' the i~itial production. Five wildcat wells, completed in
d IS . ~ectlOn during the month, netted a combined new proUC.tIOn of 8,075 barrels. Although 14, completions were
\e glstered in New Mexico as against 11 during December,
were less successful and yielded a new production of
t
on y 34,,608 barrels, as compared to 88,398 barrels in
necember.
IT On.January 14, and 15, lower crude oil prices went into
~h ect In North Texas (including the Panhandle) and on
eG
b ulf Coast. The reductions ranged from $ .02 to $ .28
per arrel.

Inoreaso or Deorenso Over
Decomber, 1080
Total
Daily Avg.
-482,050
-15,550
- 158,500
- 5,113
+ 70,200
+ 2,205
- 61,850
- 1,000
-169,200
- 5,458

Total 'I'Olna........ 20,816,100
Now Moxloo...... . .... . ..... 1,250,000
North Louisillllll.... . . . .. .. . . . 1,273,300

071,487
40,632
41,074

-801,400
- 14,450
- 00,850

-25,852
400
- 1,903

Total Dlstrlot . . . .. 23,349,000

753,103

-870,700

-28,281

JANUARY DRILLING RESULTS
ComIllotions
171
82
25
47
07
24

ProdllOCrs
69
32
28
12
47
1

Gas
Walls
17
0
2
10
3
1

Fallures
85
41
17
22

Iultlal
Produotlon
22,713
10,038
03,355
1,055
27,780
7,700

Total Texas . . .......
New Mexico . . .. . .... ......
North Louisiana ...... .. ....

416
30

184
0
10

42
1
11

100
4
15

163,545
34,008
8,508

Januarbototals, distriet .. . . ..
Decem r totaia, distriot ....

406
514

203
220

54
75

209
210

200,001
207,069

'h

ly

January, 1031
Total
Dally Avg.
3,058,050
118,002
8,412,450
271,360
1,320,000
42,871
4,073,750
160,443
2,442,850
78,802

North TOlna ...............
Central Wcst TOlns ....... ..
Enst TOlna ... " ...........
Southwest Texns ...........
TOlna Cons tal. .......... " .
Toxna wildoats ....... . .....

14

"25

CRUDE OIL PRICES

Texas Conatal grado "A" ................... . ....... .. .
North Toxna (40 gr. and above) .... .. ...... " ......... .
North Louisiana (44 gr. and above) ............ " .. .... .
'Price paid ror oil 44 gr. and above.

Feb.3,
1031
$ .80
.79 I
1.10 .

Feb. 4,
1030
51.05
~ 1.44'
.k11.44

\

I

(Oil statistics compiled by Tho Oil Weekly, Houston, TOlna.)

Building

Following an appreciable upturn in December, the value of building permits
issued during January at principal cities in this district fell
below the November level and amounted to only $3,301,082.
This figure represents a decline of slightly more than onethird from the January, 1930, total and a recession almost as
great as compared to the December valuation. In spite of
lhis decrease of 32.8 pel' cent from the preceding month,_
seven of the fourteen reporting cities were able to show
increases for the month.

BUILDING PERMITS
January, 1031

-

No.

Amarillo

gE~~~8t~;:t;:::::::
~:: ::::::::: ~::::: ~::':: ~:::::: ~.::.
......... .... ..... .. ......... .... ......... ......

~~.::::::::;::
-

Total. ...................... " ..........

Lnmber

55
05
103
44
287
06
200
110
308
07
209
132
24
14
1,090

Valuation

S

January, 1930
No.

Valuation

Peroonta~e

Change
ValuatIOn Ovor
Yonr

519,610
130,871
08,720
33,218
551,284
86,248
408,500
30,661
1,026,742
54,005
213,140
125,801
28,383
8,710

34
120
122
64
215
131
157
80
280
80
270
135
23
17

02,360
867,470
445,603
311,607
535,830
220,713
477,580
00,277
1,090,413
137,747
733,800
235,305
149,384
02,381

+402 .0
- 02 .8
- 84.6
- 80 .3
+ 2.0
- 00.0
- 14 .5
- 40.2
0.4
- 60.7
- 71.0
- 46.5
- 81.0
- 90 .6

3,301,082

1,743

4,002,050

-

Following the sharp year-end decline, an
appreciable improvemen't was noted in
the demand for lumber, and the January shipments from

-

33.5

Deoembor, 1030
No.

Valuation

PeroentaFc0 Chango
Valuat en Over
Month

34
64
135
27
248
00
185
85
224
34
242
126
21
13

00,505
400,573
120,734
31,755
1,275,038
126,325
473,673
000,948
1,008,310
12,320
007,050
33,341
27,820
7,235

+047 .0
- 00.3
- 47.0
+ 4.6
- 50.8
- 31.7
- 13 .8
- 94.3
+ 1.8
+338.0
- 04.0
+277.6
+ 2.0
+ 20.4

1,404

4,010,142

-

32.8

pine mills in this district increased materially. On the other
hand, lhe curtailment of production, which has been in evidence for some time, was continued throughout the greater

MONTHLY BUSINESS REVIEW
part of the month, there being only a slight gain in the
output. New orders for lumber increased 18 points, from
4.7 per cent of normal production on December 27 to 65 per
cent of normal on January 24, while shipments showed an
increase of 17 points during the period and on the latter
date stood at 60 per cent of normal production. Due to the
excess of shipments over production, stocks on hand on
January 24 were 3.1 per cent less than those four weeks
earlier. Unfilled orders recorded on the books of 45 reporting mills reflected an increase of 12.9 per cent during the
period. An outstanding feature of interest in the industry in
the past month was the large number of inquiries put out
PINE MILL STATISTICS
(Four-week period onding January 24, 10SI)
Number oC roporting mills ... .. .........•................
Produotlon ............... . ......... . •. .. .• .. ..........

~~l':~~~::::::::::::::::::::::::::::::::: : ::::: ::::: :

Unfilled ordors January 24 .... . ...... .... .............. ..
Normal produotlon .............. ............... ....... .
Stooks, January 24 .. .... ... ........................... .
Shipments below normal production .....•...... . .........
Aotual produotion below normal.. . ...................... .
Ordors below normal production ......... . ............... .

45
34,612,000 Ceet
44,427,000 Ceot
47,441,000 Ccet
27,657,000 Cect
73,544,000 Ccct
311,275,000 feet
29,117,000 Cect-40%
38,032,000 Ccet-53%
26,103,000 Ccct-35%

by railroads, which amounted to approximately 8 million
feet.
The production and shipments of portland cement during January at Texas
mills showed further declines, partly seasonal, amounting
to 17.9 per cent and 6.1 per cent, respectively. There were
322,000 barrels of cement manufactured in January, as
against 321,000 barrels in the initial month of 1930. Total
shipments from Texas mills amounted to 34,0,000 barrels in
January this year, as compared to 317,000 barrels in the
corresponding month a year ago. Stocks 011 hand declined
somewhat and at the end of the month amounted to 782,000
barrels as compared to 799,000 barrels on December 31,
and 817,000 barrels on the last day of January, 1930.

Cernent

PRODUCTION, SIDPMEN'l'S, AND STOCKS OF PORTLAND CEMENT
(In thcusands of barrels)

Production at Texas mills .. ... ... . . ...... .
Shipments Crem Texas mills . ... ...... .... . .
Stooks lit end oC month at TexlIS mills ..... .

January, 1031
Percentage Chango Ovor
Number
Menth
Year
322
- 17.0
+.3
340
- 6 .1
+7 .8
782
-2. 1
- 4.3

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board

Industrial activity increased in January by slightly less
than the usual seasonal amount and factory employment and
payrolls declined. Money rates in the open market declined
further from the middle of January to the middle of
February,
PRODUCTION AND EMPLOYMENT

The Board's index of industrial production, which is
adjusted for seasonal variation, showed a decrease of less
than 1 per cent in January, compared with declines of 3 per
cent in November and in December. Activity in the steel industry, which was at a low level in December, increased during the following month by considerably more than the
usual seasonal amount; output of automobiles, which had
shown an unusual increase in December, increased less in
January than in the corresponding month of other. recent
years. The cotton and wool textile industries were more active
in January, while the output of copper, petroleum, and coal
declined. The number of wage earners employed at factories
was smaller in the payroll period ending nearest the 15th
of January than in the preceding month, reflecting in part
extended year-end shut-downs. There were large declines in
employment at foundries and at establishments producing
hosiery, women's clothing, lumber, brick, cement, and tobacco products; employment in the men's clothing, leather,
and agricultural implement industries increased somewhat
more than usual for the season. Factory payrolls were considerably reduced in January. Value of contracts awarded
for residential building continued to decline in January,
according to the F. W. Dodge Corporation, while contracts
for public works and utilities increased. In the first half of
February the daily average of contracts awarded for residential building increased.
DISTRIBUTION

Volume of freight car loadings was reduced further in
January, contrary to the usual seasonal tendency, reflecting
decreases in shipments of coal, merchandise, and miscel-

08

of February 24, 1981)

laneous freight . Department store sales, which always show
a sharp reduction from December to January, declined by
less than the estimated seasonal amount.
WHOLESALE PRICES

The general level of wholesale commodity prices declined further by 2 per cent in January, according to the
Bureau of Labor Statistics. Prices of many leading agricultural products, and of copper and silver decreased substantially, while prices of cotton and silk advanced. In the
first half of February the price of cotton continued to rise
and in the middle of the month copper also advanced, while
the price of silver declined to new low levels and prices of
livestock continued to decrease.
BANK CREDIT

Volume of credit at member banks in leading cities
showed little change from January 14 to February 11,
further declines of $200,000,000 in loans on securities and
of $115,000,000 in all othcr loans, being largely offset by
an increase of $310,000,000 in the banks' holdings of investmcnts. In the first three weeks of February bank suspensions declined sharply and a number of banks, previously
suspended, resumed operations. Volume of reserve bank
credit outstanding decreased by $175,000,000 between the
weeks ending January 17 and February 14" reflecting a reduction of $70,000,000 in member bank balances and $80,000,000 in money in circulation, together with an increase
of $25,000,000 in the stock of monetary gold. The principal
reduction has been in acceptance holdings of the Reserve
banks.
MONEY RATES

Money rates in the open market continued to decline
after the middle of January and by the middle of February
were at new low levels. The prevailing rate on prime cornIl.1ercial paper declined to a range of 2Y2-23,4 per cent; and
the rate on bankers' acceptances was reduced to 1% per
cent, but subsequently advanced to 1% per cent.