The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal Reserve Agent (Compiled February 15, 1936) ----Volume 21, No.1 = Dallas, Texas, March 1, 1936 'l'his copy is released for pubJication in nftemoon p aper s- M h2 arc DISTRICT SUMMARY TIm SITUATION AT A GLANCE Elovonth Fedoral Roae,,'o Dietriot Janunry 19S6 ~nnk debita to individual nceounts (at 18 oities) .. . . .. ... . $764,731,000 ~artment atore BIlles .... .. ....... . .. . ..... . ........ . II rye bank lonne to member banks at end of month . .. . .... ","4'6,900 Il ~~rye bank ratio at and of month .. ... .............. . 63.8% C~l Ing 1"'rmit valuation at larger colltera . . .. . ........ . $ 4,271,546 C mmorOlnl failures ~number) ... . . . . ...............•... 39 oft'DmerciBl failures liabilitioa) .... .. . ..... . . .. . . .... . . S 339,000 I)roduotion (barre e) ................... .. , .. . . . , .. . 35,408,100 Chango from Deo. 19S5 - 4.6Z, - 53. 1'1. +$144,179 1. 8 pointo 33 .0% 24 75 .6% - 1.3% + + + Sales of department stores in principal cities of the Eleventh Federal Reserve District during January, while evidencing a seasonal decline of 53 per cent as compared with the large December volume, were 14, per cent above those in January, 1935. Distribution of merchandise at wholesale reflected a seasonal increase as compared with the previous lUonth and exceeded that of the corresponding month last Year by a substantial margin. Collections at both wholesale and retail have been well sustained. Charges to depositors' ac.counts at banks in larger cities registered a seasonal declIne of 5 per cent as compared with December, but were 23 per cent above those in January, 1935. Construction activity reflected a further expansion during th~ past month. The valuation of building permits issued at Pl'lncipal cities which, with one exception, was the highest lUonthly total reported since 1931, was 34 per cent larger than the December total and exceeded that of a year ago ?y 22 per cent. Reports covering the first half of February Indicate that the upward trend continues. Farmers in most sections made good progress with field work during the past month, despite the long period of severely cold weather. Rainfall has been light since the first of the year, and, while a good subsoil season obtains generally, a heavy general rain will be needed prior to spring planting to replenish topsoil moisture. The freezes were beneficial in pulverizing the soil and destroying insect life. Small grains have withstood the freezes and are in good condition generally. Ranges deteriorated considerably as a result of the low temperatures due to the killing of winter weeds, but the Department of Agriculture reported that the February 1 condition remained above the average. While livestock showed considerable shrinkage during the cold weather, reports indicate that they have held up unusually well. There is a broad demand for wool and mohair at firm to higher prices and buyers have been active in contracting for the spring crop. The demand for Federal Reserve Bank credit by member banks continued light during the past month. Commercial loans of member banks in selected cities declined seasonally between January 8 and February 12, but on the latter date were substantially higher than a year earlier. The daily average of combined net demand and time deposits of member banks increased slightly between December and January. Federal Reserve notes in actual circulation showed little change between J nnuary 15 and February 15, but the total of $72,505,000 on the latter date was $24.,539,000 larger than on the corresponding date in 1935. BUSINESS Jpholesale Business at wholesale in this district was well sustained during January, and seasonal increases over the previous month Were shown in the lines of dry goods, farm implements, Trade and groceries. An impl'ovement as compared with the corresponding month a year ago continued to be reflected in the case of every reporting line, the gains ranging from 0.6 per cent in the case of groceries to 69.3 per cent ill the This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ---------------------------------------------------------.---------------------------MONTHLY BUSINESS REVIEW -------------------------------------------------------------------------------------------------------- 2 case of farm implements. For the lines of dry goods, drugs and farm implements, this comparison was more favorable than the average reported during the last six months of 1935. Stocks on hand followed their usual upward ten· dency during January. While the collections of hardware, grocery, and dry goods firms were seasonally less than in the previous month, those in the lines of drugs and farm implements registered a general expansion. was witnessed in the business of wholesale farm imple· ment firms during January. The volume of distributio was 83.0 per cent greater than in the previous month, an exceeded that of the corresponding month last year h,Y 69.3 per cent. There was a material increase in the month s collections as compared with December. As is usually the case in the opening month of the year, an appreciable gain was reflected in the demand for dry goods at wholesale last month. The combined sales of reporting firms were 52.3 per cent above those in Decem· bel', and 7.0 per cent larger than the total for January, 1935. While inventories were increased considerably during January, at the close of the month they were 18.5 per cent smaller than a year ago. Collections during the month registered a decline of somewhat less than the usual sea· sonal amount. JB 'd a'l There was a seasonal upturn in the demand for groceries at wholesale in this district during Jan uary. Sales totaled 4.6 per cent more than in the previous month, and were 0.6 per cent above those reported for the same month a year ago. A substantial decline from December occurred in the month's total collections. The distribution of drugs at wholesale continued in good volume during January, although there was a slight de· crease from the previous month due to the large counter· to· seasonal expansion shown in December. Business was 22.1 per cent greater than in January, 1935. Stocks on hand in· creased during the month, and on January 31 were 23.4 per cent larger than a year ago. A further gain of 18.0 per cent over the preceding month was recorded in the volume of collections. Sales of hardware by reporting wholesale firms in this district reflected a seasonal decrease of 5.2 per cent in January as compared with December, but were on a scale 19.9 per c~nt above the san:e month a year ago. A size. able reductIOn from the prevIOUS month was also recorded in the amount of collections during January. A large expansion, due chiefly to seasonal influences, d CONDITION OF WHOLESALE 'l'HADg DURI NG JANUARY, IUBU Percentage of incrcnsc or dccroaac inRntio or calicONet Sales Stocks tions during January, 19S6 JlInunry, 1936 to nocount8 dl~n g compared with comllUred with u.tn n J lInuary December Janunry Dcccmber notes oU on Dccembe r 1935 1935 1935 1935 87.1 Groceries ..... . .... . . +.6 + 4.6 - 2.7 + 1.2 42 .0 + 7.0 +52.3 - IS.5 +24 .1 Dry good8 . .. ....... . 11 .4 FlIrm implemenu. .... . +09 .3 +S3.0 +60 .6 - 1.1 44.6 Hardwar•....... . ... + 19 .9 - 5.2 + S.8 + 6 .5 65.1 Drugs .. . ...... .. . .. . +22.1 -.5 +23.4 + 7.0 ---------------------------------------------------The demand for merchandise at depart· ment stores in principal cities of ~he Eleventh District continued very actIve during the past month. The total dollar volume of salcr averaged 13.9 per cent greater than in the initial month 0 1935, which is a considerably larger increase for that CO~l1' parison than was evidenced for any month since last Ju Yei While a decrease of 53.1 per cent was recorded as compare I with the heavy December volume, this reduction is season a in character, and close to the average for that month. Th~ combined daily average sales of reporting firms were grea~r in January than in any corresponding month since 19 . The dollar volume of inventories on hand January 3 at reporting firms evidenced a further seasonal decline. 0 1.8 per cent reflecting the clearance of winter merchandIse: l Stocks, however, remained 3.3 per cent above those a yea ago. The rate of stock turnover during January, 1936 was .26, as compared with .24, in January, 1935. Retail Trade 1 Collections evidenced a seasonal recession during lhe month. The ratio of collections during January to open accounts outstanding on January 1 was 39.9 per cent, ~s against 4.1.1 per cent in December, and 40.7 per cent In January a year ago. Collections on installment accounts were slightly below those in December, but evidenced an increase over those in January, 1935. -- BUSINESS OF DEPARTMENT STORES Total sales (perccntage): January, 1936, compared with January, 1935. . . . . . .. • January, 1936, compared with Decembcr, 1935 .... . . . : ::. : ::::: : :: ... . ....... . . .. ....... . Credit sales (percentage): " . ....•...... ... . .. ... Dallas +17.9 -49.9 Fort Worth +11 .9 - 62 .1 Houston + 9 .2 -53.5 SlIn Antonio +17 .5 -47.6 Others + 9.6 -55 .5 January, 1936, comparod with Jnnuary, 1935 ...............•.... January, 19S6, comparod with December 1935 . . .•. ..... .• ... ... •..... Stocks on hand at end of month (percentage); . ... .................. ... ................ . . +21.6 - 46 .8 +13.7 - 50 .2 +14.7 - 48. 5 +17.5 - 49 .7 + 13 .5 -53 .6 January, 1936, compared witli January, 1935 .... .... ... . •.. . . . January, 1936, compared with Deeember, 1935 .... . . ... .. . . . . .. : : : ..... . . .. . .. . " . .. . . . . . Stock turnover (rntol: .... . .. .• .....• . .. . . ... +10.8 - 1.7 - - 9.1 - 10 .7 + 7.5 + 4.2 + .1 + 1.1 Uato of stock turnover in January, 1935 ........ . ... .. ........ . Rato or stock turnover in January, 1936. . .. . . . . . . . . . . . . .. .. .. . . . ..... . . . . . ... . ..... . .. . 1.4 1.4 .28 .30 37.2 36.0 15. S 10 .7 .. ..... ....... .. ...... .. ... .... ..... ... .... 158. 0 74.5 98.8 86.6 184 .4 65.0 104 .2 S9.1 161.2 69 .7 98 .3 78 .3 130 .2 64.1 84.0 70.4 : : : ~ ~ ~~:::::: ~ ~::::::: ::::::::::::::: :::: : 49.6 49.4 59.4 56.8 59.7 58.0 72. S 67.4 38.4 37 .2 41.3 43.3 45.0 47.7 50.0 61.8 Uatio or January collections to open accounts receivable ouu.tnnding ~~~'u'~r~' ~: ·1~~~·.·.·.·.·.·.·.·. ·.:·.: : Itatio or Janunry collcctions to instnllmcnt accounts receivable ouu.tanding January 1, 19S6 .. . ... . Indexes or dcpartment store sales: ~~~:Ii~:~=rn~~~~;ri9~9:.~ .. : : : : .... . ......... - ... . . . . . •.... . ...... . .. .. -. . .. . . • .. ... Adjusted-Decembcr:19S5 ....... :::: :::: : · · ·· ····· ··· · ·· ·· ··· · .. ······ · •··· ··· •· · • · · . Adjustod-January, 1936. . . .. .. . . . ..• . . . . . . .. . ... .. ...••.. .. ... .......•• . ... . . .. .. ... Indexes or department store stocks: Unadjusted-Deeembcr, 1936 ~~r;:~~fn~:~~~~:~~6:.:.::::::::·· : ~: .. ......... .............. . . 19 .21 .22 .26 .30 .31 .20 .22 45.4 42.0 16 .0 42.4 22.5 '1'otlll Distriot +13. 9 _53. 1 +17.6 _ 50.3 + 3.3 _ 1.8 .24 .26 a9.0 14 .9 155.2 68.8 95.2 S1.9 52.1 52.2 50.6 60 .0 --- MONTHLY BUSINESS REVIEW The record of commercial failures during January turned upward from the low level of December, and while total indebtedness of defaulting firms was less than in the opening Fonth of 1935 the number of insolvencies was materially arger. The report compiled by Dun & Bradstreet, Incorp- Commercial Failures 8 orated, covering the Eleventh Federal Reserve District showed a total of 39 defaults during the month, as compared with 15 in the previous month, and 24 in the same month last year. Combined liabilities of firms becoming insolvent during January amounted to $339,000, as against $193,160 in the preceding month, and $405,?33 in January, 1935. AGRICUL TURE Crop Conditions to insure summer range feeds. Most of the other sections of the district are adequately supplied with moisture, and prospects are generally favorable for early spring and summer range. The cold weather during the month caused some shrinkage in livestock, but on the whole they held up unusually well. Feed supplies in most areas continue abundant and very little supplementary feeding has been necessary so far this winter. The Department of Agriculture reported that prospects are favorable for good lamb and calf crops. Contracting for wool and mohair has been active at firm prices. ili The Department of Agriculture reported that the condition of cattle ranges in Texas declined from 82 per cent of normal on January 1, to 77 per cent on February 1, but the latter figure was 30 points higher than a year ago, and 1 point higher than the ten-year average. The February 1 condition of sheep and goat ranges was rated at 80 per cent as compared with 88 per cent on January 1, and 46 per cent a year earlier. The condition of cattle was reported as 81 per cent on February 1, which was 2 points lower than that a month earlier, but 23 points above the condition a year ago, and 3 points higher than the ten-year average. While sheep and goats deteriorated 4 points during the month, the February 1 condition figure of 84 per cent was materially higher than on the same date last year. The condition of ranges and livestock in New Mexico and Arizona is above the average and good range feed was available during the month. The agricultural situation in this district was generally favorable during the past month. Rainfall since the first of ~e year has been light over most sections, but precipitation as been above normal in much of the west and northwest po.rtions of Texas where it was most needed. A deep sub8011 season obtains over the major portion of the district, yet a good general rain will be needed prior to spring planting to place the topsoil in prime condition. The hard fr~ezes were very beneficial in that they pulverized the 11011 and tended to destroy insect life. While the cold weather retarded outdoor work, farmers in most sections ade good progress with field work and reports indicate at the preparation of the soil for spring planting is well advanced. Small grain crops continue in a generally good condition. During much of the cold weather the snow cover provided protection for the plants and added to the moisture supply. Commercial reports indicate that plants have a good root system and that roots are deeper in the ground than for several years. Furthermore, there has been less grazing of wheat fields in northwest Texas due to the lateness of the crop. Some damage to the oat crop occurred as a result of the freezes. T~e Department of Agriculture reported that no damage to CItrus fruits in Texas is apparent from the low January ~e~peratures. Forecasts of production of oranges and graperUlt on February 1 remained unchanged from those of a month earlier. Commercial vegetable crops in south ~~x.as were in good condition generally on February l. nnile cold weather, which prevailed in this area during much of the last half of January, did some damage to growing crops and slowed down shipments, the damage wbas not as extensive as was first reported. There is given elow the condition of principal truck crops: CONDITION OF COMMERCIAL TRUCK CROPS IN TEXAS February 1, 1986 February 1, 1035 January 1, 1086 (Pcr cent) (Por ecnt) (Por cent) 81 31 gabbago . ............ .. .. .. ... 80 Br~l>Cas. . .................. ~~~~i::: : ::::::::::::::::::: Onicns ....................... Spinach·.................. .. .. .. ............ ......... 70 ~~ 80 88 66 37 49 68 37 82 72 70 78 82 75 BOURCE: Dopartment of Agriculture. -------------------------------------Ranges and livestock in this district showed slightly more than the average deterioration in January due to the extreme cold weather during the month, but according to the Department of Agriculture the condition remains above the average for this season of the year. While rainfall in January was above normal in northwestern and western districts of Texas, portions of this area still have insufficient moisture Livestock The receipts of cattle and calves at the Fort Worth market in January reflected a decline as compared with December, but were considerably larger than a year ago. The arrivals of hogs showed a large seasonal increase over the previous month and were in about the same volume as in January, 1935. The receipts of sheep were greater than in either comparative month. Movements and Prices FORT WORTH LIVESTOCK RECEIP'rS (Number) January Chango ovcr Dccember Change oVOr January ycar 1035 1935 montb 1936 74,034 72,005 48,220 +24,676 - 1,120 Cattle .. .. .. ........ ..... 27,000 42,110 - 11,151 + 3,050 Calves .. . . ... .. .. ....... 30,068 +14,625 + 1,101 COMPAllATIVE 'l'OP LIVESTOCK PRICES (Dollars por hundredwoight) January January December 43,870 20,668 44,521 19,412 - 651 +10,256 29,245 28,567 rhoo~p ... ·.: : : : : :: : : : : : : :: : 1036 Boof stoers ....... . ... ..... ... ... .. . . .. . ...... .. . . Stocker steers . .... . . .. ....•.. ... ... ...••.... . . . . . Hcifors and yearlings . ... .. .. . . . .. . . ..... . .. . .. .. . Dutchcr cows ........ . ........ ..... .... .. ..... .. . Calves ... .. .. ..... ... . . ........ . . ........ .... .. . Hogs . .. . ... . ......... . ...... ........ . . . .. .. .. . . r~:f,e: : :::::::: : :: : :: : ::: : ::::::: ::: : :: : : :: : ::: 1935 S 0.35 $ 8. 25 7. 00 0.50 6. 00 7.00 10 .25 6.50 10.00 5.00 9.75 4 .76 0.75 8.25 5.00 8.26 1085 S 0.90 6.75 11 .00 6.00 7.00 9.70 5.75 10 .00 4 MONTHLY BUSINESS REVIEW -------------------------------------------------------------------The cattle market was somewhat irregular during the past month. During the greater part of the period plain and common classes predominated in receipts. There was an active demand at steady to higher prices for cows, calves and low cost steers, but the outlet was narrow for the better grades of fed yearlings and steers with a tendency to lower prices. The hog market, after reaching a top of $10.25 during the first week in January, declined considerably but during the first half of February the best offerings sold at or near the $10.00 level. Sheep and lambs usually found a ready market at generally firm prices. FINANCE Operations 0/ the Federal Re· serve Bank Member bank borrowings at the Federal Reserve Bank increased somewhat late in January and early in February, but the total on February 15 had declined to $89,000 which was only slightly higher than a month ear· lier. Borrowings on the same date in 1935 totaled $37,000. Outstanding advances to established industrial and com· mercial businesses for working capital purposes and com· mitments to make such advances reflected a further slight decline during the month. Investments of this bank in United States securities were increased $1,025,000 between January 15 and February 15, and on the latter date were $13,525,000 larger than a year ago. The reserve deposits of member banks with the Federal Reserve Bank on Feb· ruary 15 were $2,666,000 less than a month earlier, and $8,543,000 lower than on the same ' date in 1935. Federal Reserve notes in actual circulation at the middle of Febru· ary amounted to $72,505,000, which was approximately the same as on January 15, but $24,,539,000 greater than a year ago. CONDl'l'lON OF THl!: FEDERAL RESERVE BANK (In thousands of dollars) Feb.16, Feb.16, 1936 1936 'rotnl oash reserves .. ............................ . $142,111 $127,890 Discounts for member banks .......... .... ...•..... 89 37 Other bills discounted ............................ . None None Industrial advnnees ............ .. ........ . ... . ... . 1,735 !J321 Commitments to make industrial advances ......... . 690 Nono Bills bought in the opon market ............. ...... . 133 148 United States Government securities owned .......••. 86,000 71,475 All other investments .......... ........ .......... . 10 None Total earning lUlSets ............ ... ............. . . 86,967 72,976 Member bank reservo dopesits ... . ..... . . . .... .... . 132,040 140,583 Federal reserve notes in actual eiroulation ......•.... 72,605 47,066 Jan. 15, 1036 $140,406 86 Nono 1,771 603 126 83,076 net demand deposits declined $22,384,000 during the five' week period, but on February 12 were $33,619,000 greater than a year ago. Time deposits reflected a decline fro ln both comparative dates. Their reserve deposits with the . )~ Federal Reserve Bank on February 12 were somew 1 lower than on January 8 this year or February 13 last year. CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (I n thousands of dollars) Jan.8, Feb. 13, Fob.12, 1036 1036 1930 $1491614 $166,644 United States securities owned ............. . . . .. . . . $147,502 Securities fully guaranteed by the United Stntes Oov52,386 24,591 50,093 ernment (owned) . ..... . ........... . . . ... . ..... . 47,600 41,049 All othor stocks, bonds, and seourities owned . ... .... . 48,375 42,731 49,409 Loans Oil soourities . .......... , ............. . .... . 42,020 153,666 137,886 144,460 All othcr loans ........... . .................... . . . 10f>,207 187,355 Total loans . ...... . ...... . . . .... . ........ .... . .. . 186,480 371,611 315,608 340,227 ~.et demand deposits .......................... .. . 120,666 124,675 .me depos.ts .. .. . . ..... . ......... . ............ . . 119,760 85,360 86, 136 76,357 Reserve with Federal Resorve Bnnk ..... .......... . Dills payable and redisoount. with Federal Resorve None None Bank ...................................... . . . None o 86,066 134,706 72,643 Condition of During the five·week period ended Feb. Member Banks ruary 12, 1936, the reports of member in Selected Cities banks in selected cities reflected a sub. stantial decline in loans, investments, and deposits. The investments of these banks in the direct obli· gations of the United States totaled $14,7,502,000 on Feb· ruary 12, w'hich was $2,112,000 lower than five weeks earlier, and $19,142,000 below that a year ago. While their holdings of fully guaranteed securities declined $2,293,000 between Janual'y 8 and February 12, the total on the latter date was $25,502,000 larger than on February 13, 1935. Investments in other securities rose $785,000 during the five·week period and were $7,326,000 greater than a year ago. Loans on securities declined $711,000 from January 8 to February 12, and continued substantially lower than in the previous year. "All other" loans (largely conmrer. cial) reflected a seasonal recession. These loans totaled $1.44,,4.60,000 on February 12 which represented a decline of $9,106,000 from that on .T auuary 8, but an increase of $6,574,000 over the total on February 13 last year. Their --- The daily average of both net dema~d and time deposits of member banks In this district during January registered ~n increase over the previous month, although a decline 1fI the former classification occurred at country banks and a reduction in the latter classification was shown at reser~e city banks. The combined daily average of these deposl~ during the month amounted to $782,74.5,000 as compare with $780,124,000 in December. Deposits of Member Banlcs Jan" Feb., Mar., ~lril, ny, June, July, Aug., Sept., Oct., Nov., Dec., Jan., DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) Country Ban~ Combined Total Reservo City Banks Time Not demand 1'imc Net demand Time Net domand depesits deposita doposits deposits deposita deposits $83,18 1 $311,349 1036 ........ $590,469 $113,265 $196,436 $279,110 84,660 319,168 1935 ........ 600,126 112,680 197,155 280,057 81,376 311,391 1036 ........ 606,672 112,019 103,304 294,281 81,507 307,186 112,252 1035 ........ 606,348 209,163 193,840 81,306 307,017 1936 ........ 603,787 113,128 104,524 296,770 80,416 308,636 1036 ........ 600,260 112,838 103,253 300,625 81,643 300,583 1036 ........ 618,475 112,762 194,305 308,802 82,754 304,330 1036 ........ 630,736 111,826 104,680 326,406 82,434 254,422 1935 .... .... 667,887 1ll,616 194,050 313,466 82,034 256,380 1935 ........ 581,625 110,903 193,927 325,245 82,974 1936 ..... , .. 589,245 256,900 111,867 194,841 332,345 82,843 244,801 1035 ........ 586,500 111,682 104,625 340,708 85,714 241,031 1036 ........ 586,980 110,051 195,765 345,040 -d f As is usually the case at this season tan the year a material decline in outs ing bankers' acceptances was regiS ter~ . · tnct during January. Accepting banks in the Eleventh DIS. reported the total volume executed by them and outstandIng on the last day of the month as $1,767,116, which compares with $2,574,,194, on December .31., and $1,452,967 ;;. January 31, 1935. The decrease durmg the month was . flected in the volume of accepLance's haRen on the dOlltcRtJ(: shipment and storage of goods. Acceptance Marlcet d MONTHLY BUSINESS REVIEW Debits to Individual Accounts The usual seasonal decrease was reflected in debits to individual accounts at leading centers in this district during January. The total amounted to $754,731,000, as against $790,54,1,000 in the preceding month, and $612,211,000 in January, 1935. Despite the 4.5 per cent decline f~om December, increases were reported at four of the eIghteen cities. Savings A substantial reduction in savings deposDeposits its during January was evidenced by reports received from 125 banks In the Eleventh Federal Reserve District. The total savings deposits held by these banks on January 31 amounted to $152,74,1,532, which is 2.3 per cent less than the total of $156,34.1,446 shown for December 31. As compared with a year ago there was an increase of 3.9 per cent, this being t~e smallest percentage gain shown for this comparison SInce May 31, 1934. .., Number of rOG~~t,g Ilcnumont ..... , .......... ... ..... Dallas . . ~i • :: :.:;:. • Alioo~~~ llalls ...... ..... .. ... ...... rs ............ . ............ 3 0" 2 3 4 11" 2 0" 3 3 3 70" Janunry 31, 1036 Number of Amount of savings savin~s depositors dCllostts 9,017 ~,537,760 77,016 24,814180 12,236 6,101,806 34,509 11,518 177 10,354,361 16,789 66,040 30,770,251 5,620 2,213,887 18,009 17,346,771 22,420 10,320,555 10,631 5,001,530 3,307,431 6,289 26,554,424 50,862 5 DEBITS TO INDIVIDUAL ACCOUNTS (In tbousands of dollars) Percentage Jllnuary January obange over Dccember 1936 1035 year 1035 Abileno ................ . $ 7,304 $ 5,782 $ 8,752 +27.0 20,435 24,261 -15.8 Austin ........•....• • ... 24,107 Beaumont . . ... . . .. . .... . 22,402 10,253 22,520 +10.8 Corsioana . .. ...... . .... . 3,227 3,380 2,040 + 15 .3 Dallas .. ....... . ....... . 218,013 170,457 230,883 +28.4 23,247 El Paso ... .. ..... .. . . .. . 18,807 24,630 +23.6 02,426 Fort Worth ... .......... . 70,086 91,137 +20.7 25,030 Gnlveston ............. .. 22,706 28,003 +14.2 180,402 Houston .... . . .. ... .. ... . 130,151 183,361 +20 .7 Port Arthur .. . ...... . .. . 7,015 5,002 7,536 +27.7 2,721 2,417 3,040 Roswell . ............... . +12 .6 San Antonio . ........... . 00,463 60,880 61.533 +12.0 Shrevoport . ..... ... ... .. 37,184 20,359 34,713 +26.7 rrcxarkana· ............. . 0,070 5,637 +18.5 0,925 'rueson ..... ...... .. .. . . . 6,920 0,006 0,822 +38.6 12,161 0,014 +20.5 11,500 13,169 15,700 ~~~~::::::::::::::::::: 13,601 + 3.3 Wiohita Falls . . ......... . 14,323 11,808 14,520 +21.3 + + TotaL ......... . $754,731 $612,211 5700,541 +23.3 - 4.5 "Inoludes tho figures of 2 banks in Texllrkana, Arkansas, looated in the Eighth Distriot. SAVING S DEPOSI'I'S January 31, 1035 Number of Amount of savings savings depositors deposits 8,763 $ 3,505,036 76,367 25,142,058 11 ,732 5,172,892 34,285 10,679,437 16,407 0,803,222 65,068 20,053,506 5,220 2,046,684 17,149 16,322,121 22,377 10,80S,33fi 11,005 6,502,720 5,040 2,912,000 49,723 24,087,886 Deoember 31, 1035 Number of Amount of savings savings dopositors deposits 0,224 S 3,705,521 25,404,214 76,016 12,094 6,295,288 34,633 11,285,508 16,771 10,500,013 07,439 33,152,354 5,500 2,252,045 17,262,023 17,023 22,268 10,784,038 5,006,553 10,770 3,320,826 6,264 50,573 26,584,303 Percentago ohange over year III savings deposits + .0 - 1.3 + 18.0 + 7.0 + 5.6 + 2.7 + 8.2 + 0.3 - 4.5 -10. 1 +13.6 +10.2 'Fatal. ................ 125 330,527 $152,741,532 324,144 $146,005,019 + 3.0 "Only 8 banks ill DallllS, 10 in Houstoll, 5 in San Alltonio, alld 68 in "All others" roportod thc number of savings depositors. FEBRUARY DISCOUN'l' RATES (Prevailillg rates) Dallas Rato oharged oustomers on primo oommeroial I1l1pOr suoh lIS that now eligiblo for redisoount undor tbe Fedoral Resorve Aot . . ............................................................ . 2-0 1\ le R"'- cbarged on loall8 to othor banks scoured by bills reoeivllble .. ......... .. ................. . aw au lonns scoured by primo stock exohango or otber ourrent eollnteral (not inoluding loans plaoed ill other markets through correspondent banks): It t Percentage ohange over month -15.5 -15.5 .1 5.0 - 5.2 - 5.0 -13.2 - 7.4 - 1.6 + 1.0 -10.5 .0 + 7.1 - 3.0 - 2.2 4.0 -13.0 - 1.4 ~i:e~n.d.::::::::::::::::::::::::::::::::::::::::::::::::::::::: :::::::::::: ::::: l~~ obarged on oommodity paper scoured by warehouse rocoipts, oto .. .... . ...........•. .. ..•.. On cattle loans ... . .... . ....... . ...............................•... . ..............••. 5 5-8 1;!4-8 5>11-8 ElPllso 330,474 Fort Worth Peroentage obauge over montb iu savings deposits - 6.8 - 2.3 -3. 1 + 2. 1 -1.4 - 7.2 - 1.7 + .5 - 4.3 + 3.6 $156,341,446 Houston - .1 - 2.3 San Antollio 5 1>11- 7 1-0 3-7 1*6 4- 10 4-10 6-8 6-10 4- 7 1-7 3-7 7-10 0 6-7 5- 8 7-8 Waco 5-7 6 6-8 6-8 8 6-8 .4 5-8 6-8 6-8 3-7 8 ,.1 I INDUSTRY Cottonseed Products Operations of cottonseed oil mills in both Texas and the United States followed the customary seasonal trends during January, the receipts and crushings of seed and the production of all products being less than in December. On the other hand, the January comparison with activities in the corresponding month a year ago again showed a considerable improvement. With the exception of crude oil at Texas mills, Which reflected a slight decrease, shipments of cottonseed products during the past month reflected a further increase OVer those a year ago, and movements of cake and mea l and hUlls exceeded those in December. Durin g the first half of lhe current season the production and shi pmeJllS of COUOIlseed products were greater than those in lhe corresponding six months of the previous season. Receipts and crushings of seed during the present season have likewise evidenced S'l'A'rTs'rrcs ON COT'l'ONSEmD AND CO'I"I'ONSgED PRODUCTS Texas United States August 1 to January 31 August 1 to Jalluary 31 rrhis Benson Last sensou This scason Last scason 017,165 685,614 3,479,335 3,220,153 745,668 621,560 2,032,002 2,586,081 103,009 166,800 630,818 856,833 210,451,042 178,077,532 881,577,071 706,040,265 343,068 205,613 1,321,846 1,171,694 201,287 164,767 753,663 668,532 146,245 130,505 000,378 566,012 Cottonsced received at mills (tons). . .. . Cottonsccd orushed (tons). . . . . . . . . . . . . Cottonsecd on band Jan. 31 (tOilS)..... Crudc oil produced (pounds) .. ...... ... Cake and meul produced (tons). . . . . . . . Hulls preduoed (tOilS)...... . . . ........ Linters produccd (running balos). . . . . . . Stocks on haud Jnnunry 31: Crudo oil (pounds) .......... . . . ..... . 33,302,419 Cako and meal (tons) . .......... . ... . . 92,760 94,312 Hulls (tons) ........................ . 69,906 Liuters (running bales) .. . ....•........ 14,708,670 87,24 1 64,031 51,035 88,338,751 3r.8,752 189,133 109,820 52,275,630 340,76:1 192,26 ~ 178,993 6 MONTHLY BUSINESS REVIEW an increase over those a year ago. Stocks of cottonseed on hand at crushing establishments in both Texas and the United States on January 31 were seasonally smaller than a month earlier, but at Texas mills they remained above those a year ago. Supplies of crude oil, cake and meal, and linters on hand at the close of January were in excess of those held a year ago, and inventories of oil and linters were greater than the holdings a month earlier. Textile Milling The consumption of cotton in the United States during January reflected an in· crease over that in December consider· ably larger than usually occurs in that month, and the volume continued well above that a year ago. There were 591,309 bales of cotton consumed during the month, as compared with 498,329 bales in December, and 550,553 bales in January, 1935. Consumption during the month was also 8.9 per cent above the 1926·35 average for J anu· ary, and greater than in any like month since 1929. During the first six months of the 1935·36 cotton season the domes· tic consumption of cotton totaled 3,007,197 bales, as against 2,684,,647 bales in the same period of the previous season. Stocks of cotton held by consuming establishments on Janu. ary 31 were again in greater volume than a month earlier or a year ago, whereas the supply in public storage and compresses was considerably less than on either compara· tive date. Operations at reporting textile mills located in Texas evidenced a decrease in January from the previous month. The consumption of cotton and the production of cloth as well as orders for finished products on hand January 31 were less than a month earlier, but each of these activities continued above those a year ago. Stocks of finished goods on hand at the close of January were slightly greater than a month earlier, but they remained far below those held on the same date last year. COTTON CONSUMED AND ON HAND (Bales) January Jnnuary August I to January 31 1036 1036 This SnaBon Last sellSon Cotton·growing states: Cotton oonsumed ........... ... .... . 407,300 430,607 2,620,681 2,142,130 On hand January 31 inConsuming establishments ......... 1,211,212 067,703 Publio stornge and oompresses .. .. . 7,710,103 8,735,778 United Stotca: Cotton oonsumed ...... .... . .... . ... 501,309 660,553 3,007,107 2,084,647 On hond January 31 inConsuming establishments .. .. .... . 1,434,992 1,102,065 Publio storage and eomprcssos . .... 7,844,296 8,946,860 Cotton Movements The receipts and exports of cotton through the ports of Houston and Gal. veston evidenced the usual seasonal .reo cession during January, but they remained in appreciably greater volume than in the corresponding month of the previous year. January was the third consecutive month that an increase over the same month a year ago was registered in exports of cotton from both distributing points. During the first half of the current season a total of 2,032,209 bales of cotton was shipped from Houston and Galveston, which compares with 1,541,116 bales in the same period of the previous season. Stocks of raw cotton on hand on January 31 at these ports were seasonally smaller than a month earlier, and at Houston they remained below those a year ago. A marked decrease from the previous month was evi· denced in the exports of cotton from all United States ports during the past month. The reduction amounted to 40.1 per cent which is materially larger than the aver~ge seasonal recession for that month. On the other hand, shlPt ments continued well above those a year ago. A total. 0 525,636 bales of cotton was exported during January whlC~ compares with 877,480 bales in December, and 4,65,71 bales in January, 1935. Exports during the first six months of the current season amoun~ed to 3,977,902 ~ales, a~ co m pared with 2,864,,538 bales m the corresponding penod 0 the previous season. The large decrease in exports as col11· pared with the previous month is accounted for large~y ~y a substantial reduction in shipments to Great BntaIn, Japan, and most of the continental European countries. f COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bnlos) Augu,t 1 to JonuRry 31 Jnnuary January Thi, s6380n Last BoaBen 1036 1036 1 402 662 824,40 1 Reoeipts .. ..... ... .. ... ...... ....... . 132,010 70,060 '877'663 786,202 Elport .. .. ........ . .. ............. . . 104,851 168,006 749:022 600,092 Stook., January 31. ................. . COTTON-GALVESTON STOCK STATEMENT (Bal..) Jan. 31, 1936 For Great Britain ................. ....... ....... . 2,300 For Franoe ... ... ............................... . 5,600 For other (oreign 1>Ort. ... ..... ... . .... . .. .. ...... . 40,700 For coaatwiBe I>Orts ............. . . . .. . ...... . '. ... . 2,000 In oompr ..... and depots .. ...... .... .... ......... . 000,022 Total. . ... . .. .................. . Jan. 31, 1935 1,500 2,000 20,000 800 670,392 - 000,602 749,622 COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bal..) August 1 to January 31 January January This B enson Last BenBOIl 1030 19S5 Reoeipt, ....... . .... . ...... . . .... ... . 163,809 63,874 1,607,059 ~g~,m Ell>Ort. ............ . . .... ... .... . . . . 202,677 137,316 1,164,046 974'228 Stocke, January 31. .. ... .. .... . .. . .. . 643,059 ' SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTB-(Bales) AugUBt I to January 31 This season Last BenBO n Reoeipto ............................. ... . . . ................ . . 5,074,222 Elports: United Kingdom .... .. ... ....................... . .. . 018,611 246'790 g'm'm r'~;W: ::H:: 408,023 100090 484' 105 622' 044 '547 1,050, 207,171 T. . 3,086,467 Stocke held at nil United States porto, January 31. ............. .. 2,008,766 SPOT COTTON PRICES-(Middling Basis) (Cento por l>Ound) January, 1036 High Low ii;t.. ·.: ..:. .. . :... 12 .20 11.06 11.44 !l .80 11.80 !l .00 !l.31 10 ,81 11 .25 11.21 ' 249,88 1 196,020 442,681 1050,482 '203 833 ' 8 2,864,6~4 2,860,8 Feb. IS, 1930 11 .70 11.80 10.88 11.26 11.22 --------------------------------------------------Petroleum The output of crude oil in the Elevenr District was on a somewhat smaller sea e in January than in the preceding month, but still was a~: preciably larger than a year ago. The total amOU!lt ran ported was 35,498,100 barrels, which compares WIth 1 aggregate of 35,972,850 barrels in December, and a tota 7 MONTHLY BUSINESS REVIEW of 33,331,200 barrels in January of last year. A reduction from the previous month was shown in field operations. Of the 817 wells completed in January, 604 were producers and had a combined initial flow of 1,168,187 barrels. In December there were 1,088 wells completed, of which 773 Were successful, having a flush yield of 1,721,272 barrels. Texas fields produced an average of 1,036,400 barrels daily during January, as against 1,064,585 barrels in the previous month, and 1,004.,200 barrels in the corresponding I~onth last year. All sections of the State with the excephon of south Texas participated in the reduction from December. The daily output fro111 New Mexico showed a moderate increase and that reported for north Louisiana rose from 38,485 barrels in December to 50,500 barrels in January. The uptrend in the latter area is attributable to the recent active development of the Rodessa field. OIL PRODUCTION-(Barrols) Innrcu.ao or dccrcuso over January, 1036 Docomber, 1035 'rotnl Daily Avg. Totnl Daily Avg. 3,577,400 115,400 - 102,400 - 3,303 5,345,050 172,450 - 308,100 - 12,B42 14,769,950 476,450 -204,BOO - 8,542 2,104,000 67,000 + 70,450 + 2,563 6,330,200 204,200 - 187,900 - 6,061 N Total Texas. . . . .. .. . .. . . .... 32,128,400 N°wIMoxico ........... ........ . .... . 1,804,200 ort I Louisiana ........ '.' . . . . . .. . . . .. 1,565,500 1,036,400 58,200 50,500 -873,750 + 26,560 +372,450 -28,185 + 855 +12,015 'rotal Distriot... .. .. .. . •. . . . . 35,408,100 1,145,100 -474,750 -15,315 JANUARY DRILLING RESULTS 14 Initial Produotion 28,038 106,070 832,367 71,510 21,006 Total Texas .... . New Mexico ............. North Louisiana .......... 770 22 16 580 18 6 27 2 4 172 2 6 1,059,900 28,212 80,075 .Tnnuart;.,l.otals, di.trict . ... Dccom r totals, district .. 817 1,088 604 773 33 40 180 266 1,168,187 1,721,272 North Texas .. . ..... .. ... Wcsl. Texas .... . . .... .. .. East Texas .............. Soutb Toxas ............. Texas Coastal. .... ....... _~· •• i•• ••••• ••••••• ••• ·:·· •••• •••••••• ••••• •••••• ••• •••••••• wreveport .................... . ........................................ . wfctiin '}inlls '. ::: :: : :: :: : : :: ::: :: : :: :: : : ::: : : :: : :: : :: ::: :: : :: :: : :: ::: : :: : 7 Total. ........................ . . .......... .................. 1,644 -Increase ovor one thousand pcr cont. Gas Wolls 16 2 2 3 4 Failurca 69 30 8 51 CRUDE OIL PRICES (Price pcr barrcl) Feb. 7, 1036 Fob. B, 1035 $1.12 Texas Coastal (34 gravity nnd nbovc)............... $1.22 North Toxas (40 gmvity and above). .. . . . . . . . . . . . . . 1.08 1.03 North Louisiana (40 grllvity and above) .. .. . . . . . . . . . 1.10 1.08 (Oil statistics oompiled by Tho Oil Woekly, Houston, Texas) Building Construction permits issued at fourteen principal cities in this district during January totaled $4,,271,54.6, as against $3,189,874 in December, and $3,501,663 in January a year ago. More than half the reporting centers participated in the increases over both comparative months. The total number of permits issued during January amounted to 1,644, as compared with 1,296 in the previous month, and 1,4-51 in the corresponding month last year. BUILDING PERMI1'S January, 1036 January, 1935 No. 22 154 97 81 419 47 102 82 269 60 195 73 27 Completions Producers 196 111 111 70 222 212 124 178 72 54 Valuation S 43,334 700,345 219,838 125,530 909,275 42,003 582,400 25,561 703,021 25,400 480,880 84,203 27,753 12,005 No. 20 131 02 46 351 27 86 82 210 40 178 127 23 20 Valuation $ 21,304 1,735,B03 48,865 36,081 370,500 15,557 379,480 25,248 521,435 24,628 214,186 60,672 29,254 0,551 $4,271,546 1,451 $3,501,663 Perccntage change in vnllln.tion December, 1935 +103.4 - 53.0 +349.0 +247.0 + 163.3 +170.6 + 53.5 + 1.2 + 52.3 + 3.2 +128.7 + 38.8 5.1 + 36 .1 No. 35 115 84 41 300 20 75 61 203 40 170 82 24 10 Valuation $ 63,477 285,250 13,810 23,151 502,013 13,085 386,800 588,691 657,485 24,812 239,368 03,682 275,213 23,037 + 22.0 1,296 $3,180,874 over year - Peroentago ohange in valuation over month - 31.7 +180.2 - +442.2 + 00.1 +221 .7 + 50.6 - 95.7 + 20.8 + 2.4 +104.7 - 10 .1 - 80.0 - 43 .6 + 3U 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (A8 Compiled by the Bonrd of Govel'nors of the Fedel'nl Resel've System, Febl'uary 2G, 1986) Total volume of industrial production increased in January, but owing to a decline in activity in the automobile and allied industries from an exceptionally high level in December, the increase was less than is usual at this season. PRODUCTION AND EMPLOYMENT Total output at factories increased by a smaller amount than is usual in January, while output at mines showed a seasonal increase. The Board's combined index of industrial production, which makes allowance for seasonal changes, declined from 104 per cent of the 1923-1925 average in December to 99 per cent in January. This decrease reflected chiefly sharp reductions in output of steel and of automobiles from the high levels reached in December. In the first three weeks of February the average rate of operations at steel mills showed a smaller increase over the January average than is usual; at automobile factories output was estimated to be at a lower level than in January. Smaller than seasonal increases in activity were reported at textile mills and at shoe factories, while output of food products was in considerably larger volume in January than a month earlier. Factory employment showed a small seasonal decrease between the middle of December and the middle of January. At automobile factories the number of workers, which usually increases at this season, was unchanged, and at textile mills employment declined. Factory payrolls decreased by more than the usual amount. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, was smaller in January than in December. Awards for publicly-financed projects decreased from the relatively high December figure and there was a seasonal decline in contracts for residential construction. DISTRIBUTION Retail trade was reduced more than seasonally in January, l'eflecting in part the influence of unusually severe ~eathdr. Sales by department stores, variety stores and mall-or er houses all declined by more than the usual seasonal amounti Freight-car loadings showed little change; loadings. of 110a_ increased considerably, while rail shipments of mlSce all eous freight declined. COMMODITY PRICES The general level of wholesale commodity prices continued to show little change during January and the first three weeks of February. Prices of cotton textiles, flour, wheat, and silk declined, while prices of hogs,. petr?leuJlli coffee, and rubber increased considerably. Retail prIces 0 foods decreased somewhat during January_ BANK CREDIT Excess reserves of member banks fluctuated betweer January 22 and February 19 near a $3,000,000,000 lev~d: ~hanges reflecting princ~pall~ fluctuations in Treasury ho _ mgs of cash and depOSIts WIth Federal Reserve banks- .ln vestments of weekly reporting member banks in lead~J1~ cities increased by $300,000,000 in the four weeks endJ~~ February 12, and reached the largest amount ever heaid these banks, while loans decreased by $130,000,000. 0 ings of United States Government obligations increased ~y $140,000,000, holdings of obligations guaranteed by toe Government by $50,000,000, and other securities by $11 ,. 000,000. Adjusted demand deposits of repor~ing memD~ banks, which declined somewhat from the mIddle of 0cember to the middle of January, increased by $290,0? 000 in the four weeks ending February 12, while UnIte States Government deposits declined by $150,000,000. d d
@FedFRASER