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Monthly Business Review
OF

THE

FEDERAL RESERVE BANK

OF DALLAS

•

(Compiled February 15, 1937)

======================================================

Volume 22, No.1

Dallas, Texas, March 1, 1937

This eopy is released f or pubHeatlon in a fternoo n p a p e r s-

March 2

~~===========================================================================

DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Foderal Reserve District
January

1037

~'nk debits to individual accounts (at 18 cities) ..... , , , . , 5805,805,000
IVti~en t stor~ . alcs ... . '.. , , ............. . ..... .. . . .
R
Ie trado sales (6ve lines) .. .. .. . ......... . . . ... .
Vfrye bank loans to momber banks at end of month ... . i " .. '2'1',872
e a uation of building permits (14 cities) .. . . . ........... . $ 5,524,395
11
e~~~~~o!al fa!lurCII (~u~9c.r) .. .... . .•... . . . . . ...... . .
Oil
OIal failures (liab,lit,es) .... . ... . .... .. . ..... .. . $
42,000
production (barrels) .. ........... . . . . . ........ . ... .
44,094,050

Change from
Dec., 1036
-

6 . 2~

+

56 .0
5.5

-

10 . 2%

0

+S18,707

-

2

- $120,000
3 .8%

+

------------------------------------------------Notwithstanding the deterr.ent effects of adverse weather
conditions, general business activity in the Eleventh District
?uring January was substantially higher than in the openl~g month of the preceding year. The volume of merchandIse distribution at wholesale, although showing less than
the usual increase from December to January, exceeded
~at of the corresponding month last year by 14 per cent.
etail trade, as reflected by sales of department stores in
larger cities, decreased 56 per cent from the large December
volume, but registered a gain of 12 per cent over January
~ast.year when there was one additional shopping day. Bank
ebits at eighteen cities, which were seasonally 6 per cent
smaller than in December, reflected an increase of 19 per
Cent over the same month last year.

E The

valuation of construction contracts awarded in the
.leventh District, as reported by the F. W. Dodge Corporahon, rose 4, per cent from December to January, but fell
13 per cent under the total for January, 1936. Residential
nontracts awarded had a value 11 per cent higher than in
ecember and 25 per cent higher than a year ago. The

January valuation of building permits issued at fourteen
cities reporting to this bank, although 10 per cent below
the previous month, was 29 per cent above the aggregate
for the same month last year.
Reserve balances of member banks in this district, after
reaching a record total of $173,905,000 at mid-January, decreased approximately $13,000,000 during the subsequent
two weeks, but by February 15 they had risen to $169,061,000. At the weekly reporting member banks in leading
cities, loans and investments declined $28,094,,000 in the
four weeks ending February 10, reflecting a net reduction
of $11,822,000 in investments and a contraction of $16,272,000 in loans. As compared with February 12, 1936,
there was an expansion of $23,589,000 in loans and an
increase of $32,501,000 in investments. The daily average
of combined gross demand and time deposits of member
banks was $14,657,000 lower in January than in December
but exceeded the average of a year ago by $173,082,000.
Weather conditions during January were unfavorable
for the agricultural and livestock industries. Farmers have
made poor. to only fair progress with winter plowing, and
land preparation is very backward with the spring planting
season close at hand. Small grains continue in fair to good
condition, but to stimulate plant growth rains are needed
in the western portion of the district and sunshine in other
areas. Ranges reflected a general decline during the month
and livestock showed some shrinkage, yet conditions in most
sections remained above the average. The Department of
Agriculture reported that prospects for spring grazing are
good and that the outlook for the industry in most sections
is favorable.

BUSINESS
fl7h olesale
Trade

Buying at wholesale through the five lines
of trade surveyed by this bank continued
in good volume during January despite
the retarding effects of the adverse weather prevailing during
mUch of the month. Sales in all lines remained appreciably
:bove those in the corresponding month a year ago, ranging
rom 3.0 per cent in the case of drugs to 22.0 per cent in
the case of hardware. Total sales of reporting firms showed

a gain of 13.7 per cent over a year ago and 5.5 per cent
over the previous month.
Reflecting a strong demand by retailers for early spring
merchandise, the sales of wholesale dry goods firms in this
district during January rose 61.9 per cent above those in
December, and were 14.2 per cent greater than in January,
1936. The business of wholesale grocery firms was likewise

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

2

MONTHLY BUSINESS REVIEW

heavy in the past month. The increase in sales, which was
general over the district, averaged 8.9 per cent as compared
with the preceding month, and 18.6 per cent as compared
with the January, 1936, volume. The latter gain is the largest
for that comparison in recent months. The demand for hardware at wholesale declined somewhat more than seasonal
during January, due in part to the retarding effects of unfavorable weather conditions upon building and other outside activities. Sales averaged 4.7 per cent less than in
December, but continued 22.0 per cent above those in the
like month a year ago. The distribution of drugs evidenced
a recession of 11.8 per cent from December to January,
which is partially accounted for by a reduction in the
demand for liquors. An increase of 3.0 per cent was registered as compared with sales in January, 1936. Following
the record-breaking demand for farm implements during
the past few months, sales fell off somewhat in January
and reflected a contrary to seasonal decrease of 9.8 per
cent. Notwithstanding this decline, sales remained at a comparatively high level and were 16.9 per cent greater than in
the same month last year.
The dollar value of inventories on hand January 31 was
larger than a year ago in all reporting lines of trade, due
CONDITION OF WHOLESALE TRADE DURING JANUARY, 1937
Percentage of increaso or decreaso in-

Groceries . . ............... .. ...
Dry goods .....................
Farm implements ...............
Hardware .... .. .. .. ........ ...
Drugs .........................

Net Sales
January, 1937
oompared with
Jan.
Dec.
1930
1930
+18.0 + 8.9
+14 .2 +0l.9
+16.9 - 9.8
+22.0 - 4.7
+ 3.0 -11.8

Stocks
Jan. 31, 1937
compared with
Jan. 31, Dec.31,
1936
1030
+19.4 + 5 .2
+22.0 +19.5
2.2 - 6.7
+10.2 +15.4
+15 .9 + 3.9

+

Ratio Jan.
collections
to accounts
outstanding
Dec. 31
89.4
36.6
7.7
50.6
09.2

both to the higher prices of commodities and the larger
volume of goods. A general increase was reflected in the
collections on accounts by wholesale drug firms, but in other
lines of trade payments evidenced a seasonal recession.

Retail
Trade

Consumer demand for merchandise at
department stores in eleven of the larger
cities of this district during January continued to show a wide margin of gain over the corresponding month of the preceding year. This increase was significant in view of the fact that the weather prevailing during a considerable portion of the month was unfavorable
for shopping. Total sales of reporting firms were seasonally
56.0 per cent smaller than in the preceding month, b~t
exceeded the volume in January, 1936, which had one addItional business day, by 11.7 per cent. Based on daily average
sales, business in January was 16.2 per cent greater than
in the like month a year ago.
Inventories of department stores declined 1.0 per cent
in January, which was seasonal, and reflected the clearance
of winter merchandise. Stocks at the end of the month, hoWever, were 13.6 per cent larger than on the same date in
1936. The rate of stock turnover was .26 in January, which
was the same as that in January last year.
Collections on open accounts during the past month evidenced more than the usual seasonal recession, declining
from 44.7 per cent in December to 41.3 per cent in J anUary. The latter figure compares with a ratio of 39.9 per cent
in January, 1936. The ratio of January collections to installment accounts outstanding on January 1 was 14.7 per
cent as compared with 16.1 per cent in December, and 14.9
per cent in January last year.

-

BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
January, 1037, compared with January, 1930 .. . ... . .. ... .................. . .. . .... ... .. .
January, 1937, compared with December, 1930 .. ................................ ....... ..
Credit sales (percentage):
January, 1937, compared with January, 1936 .......... . .. . ..... . .................. ..... .
January, 1937, compared with December, 1930 .......................................... .
Stocks on hand at end of month (percontage):
January. 1937. compared with January, 1930 . ... . .... .. .... .............. ... . ......... ..
January, 1937, compared with December, 1930 ......................................... ..
Stock turnover (rate):
Rate of stock turnoverin January, 1930 ....... .... .. ...... . . ... ........... .. ........... .
Rate ofstock turnov~r in January, 1937 ..................... . . . . ....................... .
Ratio of January collections to open accounts roceivable and outstanding January 1, 1937 . . ...... .
Ratio of January collections to installment accounts receivable and outstanding January 1, 1937 .. .
Indexes of department store sales:

Dallas
+11.5
-53.8

Fort Worth
+12 .1
-03.5

Houston
+13.0
- 55 .0

San Antonio
+ 7.4
-52 .6

Others
+13.9
- 57.0

Total District
+11.7
-56.0

+14.0
-40 .7

+14.0
-04.9

+18.5
-49.5

+17.0
-49.4

+12 .0
-55.1

+15 .3
-52.8

+16.0
- 3 .4

-

+10.0
- 9.1

+16.5
+ .7

+10.5
+ 6.4

+13.6
- 1.0

.30
.28
40.3
10.0

2.2
1.4
.21
.23
33.7
10 .2

.26
.27
43.0

.28
.20
45 .8
12.~

.22
.22
43.5
18 .8

.26
.20
41.3
14.7

~~~§~~Wgt~~~?~\ ~: ~ :~: ::~::: :~ : ::~: : : : : : : : : : ~::::::::: : : :

183 .1
85.8
114.4
99 .8

204 .4
75 .9
115.5
102.0

170.4
78 .4
107.0
88.1

149.4
71.2
90.4
78 .2

175.4
78 .1
107.6
93.0

H~~::!;:l=ra,::,~::ri9~~~~::: : : ::::: : :: :: : : ::: : : : :::: :: : ::: :: : : : : :: ::: ::: : ::::: :::::
Adjustod-December, 1936 ..... ....... .......... .... . ...... .. . .................. ... . ..
Adjustod-January, 1937 ......... . .. .. ... .. .. ......... .. . ...... . .................. ... .

58.2
50 .6
00.1
65.1

55.2
50 .7
07 .3
05.9

30.3
41.7
42 .3
48 .5

53.0
55 .4
69 .6
60.2

57 .1
57 .8
65.6
66.4

Indexes of department store stocks:

An improvement in the business mortality rate in the Eleventh Federal Reserve
District during January was reported by
Dun and Bradstreet, Incorporated. There were 11 failures
in January, as compared with 13 insolvencies in the previous

Commercial
Failures

-

month and 39 bankruptcies in the same month last year.
Liabilities of firms defaulting during the month totaled
only $42,000, which compares with $171,000 in December
and $339,000 in January last year.

AGRICULTURE
Field work in the major portion of the
Eleventh District has been greatly retarded since the first of the year on account of unfavorable weather conditions, and land prepara-

Crop Conditions

tion for spring planting is very backward. In much of the
eastern half of the district excessive rains accompanied
by cloudy weather have kept the soil too wet for plowing·
Recently farmers have made some progress with plowing

MONTHLY BUSINESS REVIEW
?n uplands, but the bottom lands are still wet. Operations
In the western portion of this district have been delayed by
the dry, cold weather.
Although small grains show the effects of the adverse
Weather prevailing during the past six weeks, these crops
are in fair to good condition in most sections except the
Texas Panhandle and eastern New Mexico. In the latter
areas, the dry winds and the deficiency in both surface and
su~soill11oistu re are causing deterioration in the wheat crop.
ThIs situation is being aggravated by the recurrence of dust
storms which are causing some shifting of soil. Heavy rains
are urgently needed in these areas and would be beneficial
to most of the western portion of the district.
COlmllercial vegeLable crops made good progress in Jan·
Uary. M:oisture has been ample in all portions of the truck
growing area except the Coastal Bend district, and crops
?ave escaped damage from the low temperatures. The plant·
Ing of tomatoes and potatoes in the Lower Valley was
practically completed by February 1 and these crops are
getting an early start. Conditions generally are favorable
for the planting of other spring crops.
CONDITION OF COMMERCIAL TRUCK CROPS IN TEXAS
February 1, 1037 February 1, 10S6 January 1, 1037
(Per cent)
(Per cent)
(Per cent)

~ccts . ... . ........ .. ........ ..

C~~li....... .. ... ... ...... ..

ga~reJ~: : : : : : : : : : : : : :: : : : : : : :

p:ll~ Bermuda .. . ..........
SPin~ehnghsh . .. .. . .. .. .. .. .. .

83
~~
81
~~

St
.. ...... .. .. ..... .. .. .
60
T rawhorric.. .. ... .............
82
u'nips . .. . . . . . . . .. . ...
77
SOURCE: United States Department of Agriculture.

76
70
80
80
83
70
66

si

86
83
82
78
81
70
60
86
87

The February 1 report of the Department of Agriculture
stated that the weather during the winter had been very
favorable for citrus fruits in Texas. The temperature aver·
aged above normal, and the ample supply of moisture
helped the trees to carry the large crop of fruit. The quality
of the fruit was reported to be excellent. The indicated
production of oranges was placed at 1,800,000 boxes on
February 1, as compared with 1,600,000 boxes on January
1 and a harvest of 74.7,000 boxes in the previous season.
Although the estimated production of grapefruit remained
unchanged at 6,790,000 boxes, the report stated that the
frUit is "sizing" better than growers had expected.
Cash Farm
Income

According to ·the estimate of the United
States Department of Agriculture, reo
ceipts from the sale of principal farm
products in the five states wholly or partially attached to
~he Eleventh District amounted to $720,4,66,000 in 1936, an
Tcrease of 7.2 per cent over the estimated total for 1935.
he income from the sale of crops increased 11.8 per cent,
and the receipts from the sale of livestock and livestock
products rose 1.3 per cent. In Arizona and Oklahoma, total
Income was lower in 1936 than in 1935. Due to the larger
receipts from the sale of both crops and livestock products,
total income showed a gain of 15.4 per cent in New Mexico
and 15.5 per cent in Texas. In Louisiana, the increase in
~otal receipts was only 2.4, per cent as the gain in income
rom the s/1.1e of crops was nearly offset by a decrease in
receipts from livestock and livestock products.
. Government payments in these states totaled $47,699,000
In 1936 as compared with $120,392,000 in 1935.

3

RECEIPTS FROM THE SALE OF PRINCIPAL FARM PRODUCTS
(In thousands of dollars)
Receipts from:
Livestock and IivoTotal
Farm
stock products
receipts
crops
State
10S6
Arizona ...... .. ... . . . .. . $ 21,806
Louisiana. , . .... . ........
82,608
Oklahoma .... . ..........
40,043
New Mexico ...... . ... .. .
13,138
TellIS ......... . .... .. ... 257,760

1035
$ 24.020
77,240
57,716
0,221
211,245

1036
$ 22,240
17,354
82,677
28,150
145,663

Total five states ...... 1424,364 $370,451 $206,102
SOURCE: United States Department of Agriculture.

1035
20,417
82,762
26,560
138,037

1036
$ 44,055
00,062
131,720
41,207
403,432

1035
S 48, 618
07,066
140,478
35,700
340,282

$202,383

$720,466

$671,634

$ 24,508

Despite the general decline in the con·
dition of ranges and livestock in this
district during January, the outlook for the livestock indus·
try was reported by the Department of Agriculture to be
favorable in most areas. Cattle ranges in Texas declined 4
points in January, but the 77 per cent of normal condition
obtaining on February 1 was the same as a year earlier
and 2 points higher than the ten·year average. The decline
in west and northwest Texas was due to the dry, cold
weather, and in the other portions of the State it resulted
from the wet weather and lack of sunshine which caused
matured grass to decay. In New Mexico, the 75 per cent
condition of ranges on February 1 was 1 point lower than
a month earlier and 11 points below that on the same date
in 1936. The condition of sheep and goat ranges in Texas
was rated at 81 per cent of normal on February 1 as com·
pared with 86 per cent on January 1 and 80 per cent on
February 1 last year. Although the January freezes killed
the green grass and weeds which were furnishing good graz·
ing for sheep, ranges carry a good supply of matured grass.
Livestock

Livestock showed some shrinkage in January due to the
cold, wet weather, but the loss in flesh was comparatively
small and animals are in generally good condition. Losses
of cattle and sheep were light, and losses of calves and
lambs were confined largely to new·born animals in the
regions where the weather was most seVere. Supplemental
feeding was necessary in some sections during the severe
weather. Feed supplies are ample in most sections to carry
livestock through the winter. The February 1 condition of
cattle in Texas, as reported by the Department of Agri·
culture, was 79 per cent of normal as compared with 84
per cent on January 1 and 81 per cent a year ago. Sheep
and goats in Texas declined 3 points in January, and the
February 1 condition figure was 1 point lower than on the
same date last year. In New Mexico the condition of cattle
and sheep dropped 2 points between January 1 and Feb·
ruary 1 and on the latter date was considerably lower than
a year earlier.
The January receipts of sheep at the Fort
Worth market were nearly double the
December supply, the increase being con·
siderably larger than the average for that season. The supply
was also sizably larger than a year ago. The arrivals of
cattle and calves reflected a seasonal decline from December
and were smaller than in the same month last year. Contrary
to the usual trend, hog receipts decreased from December
to January, and fell considerably below those in Jan·
uary, 1936.

Movements
and Prices

The cattle market held generally steady in the last half
of January; declined in the first week of February; and

MONTHLY BUSINESS REVIEW

4

then advanced in the subsequent week. Although quality
offerings were scarce, the available supply was in good demand. Hog prices showed considerable fluctuation during
the period, but at the middle of February they were only
FORT WORTH LIVESTOCK RECEIPTS
(Number)
January Chango over December Change over
January
year
1936
month
1986
1937
73,247
-21,023
60,385
- 0,061
51,324
Cattl. ... . . ..... . .. . . .. ..
-14,054
20,814
31,105
1,201
43,868
Calves ... . ..... . . .. ... . .
43,626
37,672
44,068
- 6,306
- 5,954
Hogs . ... . . ......... . . ..
34,526
20,727
18,543
+ 4,709
+15,083
Shoop .. .. . ..... .... .... .

slightly lower than a month earlier. There was a good
demand for lambs, and prices showed an upward trend.
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars [X'r hundrodwcight)
January
January
1037
1030
Boef steers .... . .. . . . .......... . .. . .. .. . ..... . . . . . S 9.75
S 9.35
Stooker steers .... ... . .. ...... ..... ... ... . . . .. . ... .
7.15
7.00
Heifers and yearlings .. .... . .... .... .. . . .. ..... . . .
0.85
9.50
Butoher cows . . . .. .. . .. . .. .. . . ..... . . . ... .... . . . .
6.00
6.00
Calves ..... . . . . . .. . . .. ... . ...... ..... ... ... . .. ..
7.05
7.00
10 .25
10 .35
10 .00
10.00

~b.;:::: : ::: ::: :::::::: :: ::: : :: : :::: :: :::::: ::

December
1036
S 0.00
7.35
11.00
6.00
7.60
9.05
8.25

FINANCE
On January 30 the Board of Governors
of the Federal Reserve System announced
a further increase of 33 1/3 per cent in
the reserve requirements for member
banks, one-half of the increase to become effective as of the
opening of business on March 1, 1937, and the remaining
half to become effective as of the opening of business on
May 1.
Operations of
the Federal R eserve Bank

In a statement released to the press on the following day,
the Board said in part:
"By its present action the Board eliminates as a basis
of possible credit expansion an estimated $1,500,000,000 of excess reserves which are superfluous for the
present or prospective needs of commerce, industry,
and agriculture and which, in the Board's judgment,
would result in an injurious credit expansion if permitted to become the basis of a multiple expansion of
bank credit.
"All but a small number of member banks" (in the
United States) "have more than sufficient excess reserves and surplus balances with other banks to meet
a 33 1/3 per cent increase in reserve requirements.
"It is the Board's expectation that, with approximately $500,000,000 of excess reserves remaining with
the banks, credit conditions will continue to be easy.
At the same time the Reserve System will be in a position to take promptly such action as may be desirable
to ease or tighten credit conditions through openmarket and rate policy."
In the Dallas district, member bank reserve balances
averaged $165,182,000 in January, which was 60.4 per cent
larger than average required reserves, and in the first fifteen
days of February average balances maintained by these
banks rose to $167,579,000.
Federal Reserve notes in actual circulation reflected a
further decline of $958,000 between January 15 and February 15, but the total of $87,784,000 on the latter date was
$15,279,000 higher than a year earlier. Discounts for member banks at the middle of February amounted to only
$41,000. Industrial advances outstanding totaled $1,299,000
on February 15, a decline of $11,000 as compared with a
month earlier and $436,000 as compared with the corresponding date in 1936. Total reserves of this bank rose to
$194,213,000 on February 15, a new high level and gain
of $52,102,000 over a year ago.

CONDITroN OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
February 15, February 15,
1037
1036
Total cash reserves . . .......... . . ... ... .. .. .
$104,213
$142,111
Disoounts for member hanks .... " . .... .. . . . .
41
80
Other bills discountod .... ... ......... . .. . .. .
None
None
Industrial ad vano.... ... . . .. . . . ... . .. .. . . " .
1,200
1,735
Bills bought in the o[X'n market . ... .... . . . . . .
133
86
United States Government seourities owned .. . .
85,000
04,006
All other investments ... . . .... . .. . . . . .. . .. . .
3
10
Total carning assets .. . .. .... . . . . . .. . . ..... .
80,907
06,395
M.mber hank reserve deposits .. .. .. . .. . . . . . .
132,040
169,061
Foderal Reserve notes in aetual circulation .. . .
87,784
72,505
Commitments to make industrial advances . . . .
486
500

January 15,
1037
$101,604
None
None

1,3~~

05,01~

96,422
178,005
88,742
480

---------------------------------------------------Condition of
Member Banks
in Leading
Cities

The loans, investments, and deposits of
reporting member banks in leading cities
showed substantial decreases between
Janua.ry 13 and February 10. Holdings of
direct obligations of the United States
Government, after reaching a new high level on January
27, reflected a sharp decline during the subsequent two weeks
and showed a net decline of $5,526,000 for the period. In'
vestments in fully guaranteed obligations evidenced a fur·
ther reduction of $9,314,000. Holdings of other securities
were increased $3,018,000. During the four weeks loans o~
securities declined $827,000 and "all other" loans (agrI'
cultural, commercial, and in d ustria 1 loans) reflected 8
further recession of $15,445,000. Total loans and investments of these banks aggregated $488,54,0,000 on February
10, which was $56,090,000 higher than a year earlier. Between January 13 and February 10 adjusted demand de·
posits declined $6,14,2,000 and time deposits dropped $325,
000. During the same period there were withdrawals of
$8,926,000 in United States Government deposits and $3,
555,000 in interbank deposits. Balances with other banks
were increased $12,502,000. Reserves with the Federal Re·
serve Bank showed a decline of $2,820,000 from the high
level reached on January 13.
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
February 10, February 12, January 13,
1037
1936
1037
Unitod States seourities (owned) . . . . . . . . . . . . .
$102,804
$147,502
$108,300
Securities fully guaranteod by Unitod States
Government (owned) ... ...... . .'.. . ..... . .
39,443
30,120
50,003
All olher stocks, bonds, and seouriliC8 (ownod) .
55,478
52,400
48,375
Loans on seourities ... . . . .. .. . .. . . . .. .. .... .
45,004
46,821
42,020
All other loans . .. . ....... . . . . .... . . .. ... .. .
164,075
170,520
144,400
Totalloaas . . .. . . . . .. . . .... .... ... ... . . . . . .
226,341
210,009
186,480
Demand deJ>08its- adjustod" .. .. . ... . .... . •.
386,667
302,809
323,824
120,814
121,139
119,760
38,408
20,482
21,383
Interbank deposits .. . .. . . . . .. . . . ... . . . . . . . .
201,720
198,165
187,135
Balances with domestic banks .. . ... . ........ .
184,761
172,250
186,268
Reserve with Foderal Reserve Bank ... . .. ... .
109,002
107,082
76,357
Bills payable and redisoounts with Foderal
Reserve Bank.. . . . . . . . . . . . . . . . . . . . . . . . . . .
None
None
None
"Demand deposits olher than interbank and Unitod States Government, loss cash items
reporlod as on hand or in process of eolleotion.

t::rt~ff'1rat~Go~e~~;neni depoolt:s·.: :::::::: :

MONTHLY BUSINESS REVIEW

5

Debits to
Although debits to individual accounts
Individual
at banks in eighteen cities in the Eleventh
Accounts
District declined seasonally from De.
cember to Janum'y, they continued rnatenally higher than in the corresponding month of the
previous year. The month's total of $895,895,000 was 6.2
per cent smaller than in December, but 18.7 per cent above
the figure for January, 1936.

$11,057,000 at reserve city banks and $2,527,000 at country
banks. The daily average of time deposits of these banks
was $1,074,,000 lower in January than in December, the
loss being about evenly divided between reserve city banks
and country banks.

DEBITS TO INDIVIDUAL ACCOUNTS
(In thouSllnds of dollars)
January
Janunry Pctg. chango December
1037
1036
ovor year
1036
Abilone
$ 7.660
1 7,304
S 0,306
3.6
26,417
20,436
30,677
+20.3
24,901
22,402
26,637
+11.1
3,994
3,380
4,028
+17 .0
D~IT~~na . ...... . .. .... .
264,167
218,013
282,177
+20.7
30,368
23,247
20,486
~I ~W::::: :: ::: : ::::::
+30.6
88,304
70,086
05,067
+11.8
G~\ves~~th .. .. .. ... .. . . .
20,583
25,030
32,624
+14.1
~o~ston
.... ::::: : :: ::: : : :
222,231
180,492
233,876
+23 .1
or
0,186
7,616
0,001
R ~rthur ........... ..
+20.6
3,600
2,721
4,188
+32.6
Ba~'i:nt)·
70,190
60,463
76,262
Sb
DlO . . . . . . . . . . . . .
+1.1
T rovOport.. .. .... : .. ..
40,000
37,184
62,605
31.8
Toxarkana' ............. .
0,163
0,670
0,371
:\:37.2
11,560
0,606
+20 .3
12,707
14,138
12, 161
16,037
+16.3
16,002
13,601
17,125
+16.0
10 Ita Falls .......... ..
16,333
14,323
14,822
+7)

Gross
domand
Month and Ycar
doposits
1936
January ...... ........... $ 026,S04
February .. , . . . . .. .. .. .. . 037,137
Maroh. .. .. .. .. .. .. .. .. . 033,523
027,028
ay .... ... .. ........... 026,927
June ........... ,',., . . . , 048,130
July .. . ..... , ,., .. , ..... 000,400
August ...... . .. , . . . . . .. . 088,321
September ..... .. , . ...... 1,017,180
October . . .. . . .. .. . . . . ... 1,001,207
November ............... 1,007,227
December, , .. , .. , .. . , . .. 1,108,410
1037
January ........ , . .... , " 1,004,827

~~;o'~'i::::: :

+

:::::::::

~~~:~:ttO

:...... ....... .

~~r:':::::::::::::::::

-

17 .7
13.0
2.6
.8
6.4
3.2
- 7.9
- 0.0
- 6.0
+ 1.0
- 13 .8
- 6.7
- 6.9
- 2.2
- 9.7
- 11 .8
- 7.1
+3.4

+

Total. ........ 1806,805
1764,731
+18.7
196'4,016
- 6.2
-2nclud08 tho figures of two banks in Texarkana, ArkanSll8, located in tho Eighth District.

Acceptance
Market

Acceptances executed by member banKS
in this district and outstanding at the end
of January totaled $1,553,736 as compared with $2,202,277 a month earlier. The volume of outstanding acceptances based on import and export transictions increased from $4,83,04.5 on December 31 to $489,4,8 on January 31, while those executed against the
domestic shipment and storage of goods declined from
~1,719,232 on the former date to $1,0640,588 on the latter
ate.

Deposits of
The daily average of gross demand' deMember Banles
posits of member banks, which reached a
.
high level in December at $1,108,4.10,000,
~echned to $1,094~827,000 in January. Although the latter
gure was $13,583,000 lower than that for the previous
month, it was $169,023,000 larger than the January, 1936,
average. The December to January decline amounted to

-

January 31, 1037
Number of
rc~rting

~onumont ........ .. ........ ... ....

Et~B8 ···· ···················· , . · .

Fort

'Worth' ...... ..... ........... '

~::: .::
All otb

Is ................ ... ...

era . ..... . .. .• . .... . •... . .• .

Total., ... ... , ..... , ....

anks
3
8
2
3
4
10
2
5
3
3
3
71

117

tr,ril. .. .. ...... ...... .. .

Time
deposits

Amount of
doposlts
3,620,776
20,220,733
7,560,886
12,541,021
10,803,186
28,136,887
2,344,384
15,000,766
11,341,730
5,335,733
3,408,764
27,648,031

Number of
savings
depositors
0,017
78,016
12,230
34,500
10,000
66,040
5,620
18,122
22,420
0,634
0,280
53,380

348,623

156,037,406

3S3,088

621,186

100,824

Gross
demand
doposits

deposits

1110,051 $402,684
100,664
406,861
108,414
402,050
107,660
400,186
107,863
307,069
108,065
402,181
100,062 420,730
100,634 417,833
100,304
431,073
109,028
453,020
110,105 470,040
110,280 476,167

186,714
87,414
87,800
88,016
86,829
88,638
89,024
00,200
00,238
01,140
00,078
00,618

Time

deposits

109,726

473,040

Time

00,098

ADJUSTED DEMAND AND TIME DEPOSITS OF MEMBER BANKS
ON SELECTED "CALL" DATES
(In thousands of dollars)
Combined Total
Rescrvo City Banks
Country Bankst
Domand
Demand
Domand
doposits
Timo
deposits
Timo
deposits
Time
Call dates
adjusted' deposits adjusted' doposits adjusted' deposits
Juno 30,1933 ... . : . . .. . ,. 1379,662 1180,863 1170,720 $114,301 $202,033 175,562
Deo. 30, 1033 .,.,.,',.... 444,205
100,000 104,014 107,407 240,201
82,503
Juno 30, 1034, , . , . , . , . , . . 405,620
107,280 232,801
111,864
262,600
86,426
Dec. 31, 1934 . ... . ,',. ... 651,276
106,066 242,422
112,117 308,864
83,040
June 20, 1036 . .... , , , , .. . 583,044
105,210 270,550
113,421 307,088
81,780
Doo, 31, 1036 ....... . , . . . 642,167
108,405 202,620
111,851 340,538
86,644
Junc 30, 1036.... . . . .. . .. 607,486 200,661
327,363
110,006 370,133
80,605
'Demand doposits other than interbank and United States Govornment, ICBS cash items in
procCBS of colloction and, prior to Dcccmber 31, 1035, loss casb items reported on hand but not
1D prOCCBB of collection,
tOutlying banks in rcsorve cities whioh havo been authorized to carry country bank reserves arc inoluded with country banks,

Savings
Deposits

Savings deposits reported by 117 banks
in this district totaled $155,037,4.95 on
January 31, which was 0.3 per cent lower
than on December 31, but 4,,5 per cent higher than a year
ago. The number of savings accounts at these banks increased from 34,6,14,0 on December 31 to 348,623 on January 31. The latter figure compares with 333,088 accounts
at the end of January, 1936.

Deocmber 31, 1036

Amount of

Percentage c~ange

Number of

Amount of

dcposlts
3,637,709
24,632,602
0,101,800
11,518,177
10,503,576
29,255,060
2,213,808
15,286,500
10,320,566
6,001,630
3,307,431
26,815,646

savings deposits
+ 2.3
+ 0.0
+24.1
+ 8.0
+ 2.8
- 3.8
+ 6.0
+ 4.5
+ 0.0
- 0.6
+ 3,1
+ 7,1

dcpositors
8,078
80,710
13,840
36,600
17,063
68,070
6,381
20,077
23,884
0,548
0,545
64,826

doposlts
3,663,800
26,504,020
7,530,671
12,538,750
10,870,636
28,464,001
2,384,171
16,030,144
11,276,973
5,008,736
3,501,112
27,543,064

+ 4.5

340,140

156,451,307

savin~

-148,383,005

over year In

Porcontage cbango
over month in
savings deposits
.0
-1.4
+ .4
.02
.2
- 1.2
+ .4
,5
+ ,6
+ 4.6
- 2.6
+ .4
,8

8nvin~s

savings

DISCOUNT RATES CHARGED BY MEMBER BANKS DURING FEBRUARY, 1037
Prevailing mtcs
Fort Wortb
EI Paso
Dallas
RatoF~arged oustomers on primo commercial paper such as is now oligiblo for rediscount undor tho
1 ~7
2-8
6-8
Rate h eral Reservo Act . ..... , , . , . , , , .... .... , . , .. . , ........ , ... , ........ .. ........ , , , .. .
4-6
Rate e arged on loans to other banks secured by bills receivable . , . , ............... , , , ........ .
. on tlohans secured by primo stook excbange or other currcnt collatoral (not including loans placed
In 0 Dcr mnrkots tbrough correspondont banks):
4-10
0
4
4-10
6-8
H
Rate h
:::::::::
6-8
6-8
2-8
Rato c arged on commedity paper secured by warehouBC receillts, etc ......••.... , , •• , , , ...•....
6-10
6-8
6-8
_on cattlo loans .. , ...... ,', ........ " . .... . , .. " .. ,', .... , . ........... .... , . , ....... .

Ti=n,~': ::::::::: :::: ::::::::: : :::::::::: :::: ::: : :::::::::: : :::: ::::: :

Gross
demand
dcposits

1106,765 1523, 120
197,078 630,276
106,804 681,473
106,675 627,743
104,602 520,858
106,703 640,068
100,570
578,721
100,824 670,488
190,602 685,613
200,763
008,277
200,788
627,187
200,808
632,243

SAVINGS DEPOSITS
January 31, 1030

Number of
savings
dopositors
0,306
SO,188
14,009
36,664
17,097
09,420
6,468
20,230
23,801
9,630
0,604
60,216

SIlvin~

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(A vcr age of daily figures-in thousands of dollars)
Combined Total
Reservo City Banks
Country Banks

-

t

-

-

Houston

Sail Antonio

Waco

3-7
6-6

3-7
6

2-6
6-0

3-7
3-7
2-7
7-10

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

6
6
5-8
8

MONTHLY BUSINESS REVIEW

6

INDUSTRY
The receipts of cottonseed at Texas mills
in January were 74.2 per cent smaller
than in December and 59.5 per cent
below those in January last year. Due to the small January
volume, total receipts for the first six months of the current
season fell 3.7 per cent below those for the corresponding
period of the previous season. January crushings of cottonseed at these mills declined 20.4 per cent from December
and were 12.9 per cent ,lower than a year earlier. Shipments
of manufactured products from Texas mills reflected a substantial decline as compared with the previous month, but
they closely approximated the month's production. Stocks
on hand at the mills on January 31 were considerably lower
than a year earlier, the decreases ranging from 12.5 per
cent for linters to 59.9 per cent for crude oil. At all United
States mills, the crushings of cottonseed and the production
of products were moderately smaller in January than in
December, but continued approximately a fourth larger than
a year earlier.

Cottonseed
Products

STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States
August 1 to January 31
This season . Last season
Cottonseed received at mills
884,318
(tons) .. .. .... .. .... .. .....
504,369
Cottonseed orushed (tons) ...• .
Cottonseed on hand Jan. 31
80,825
(tons) ...... .... .. .... ... . .
Produotion of products:
Crudo oil (pounds) . . . ... . .... 226,663,685
370,015
Cake and meal (tons) . .. .. ... .
214,372
Hulls (tons) . ..... .......... .
173,041
Lintars (running bales) ...... ..
Stocks on hand January 31:
13,363,505
Crude oil (pounds) ...........
78,733
Cake and meal (tons) .........
55,733
Hulls (tons) .... ... ......... .
61,151
Linters (running bales) ...... ..
SOURCE: Bureau of Census,

018,358
747,064

August 1 to January 31
This SOBSon
Last SOBSon
4,226,126
3,362,666

3,481,658
2,035,861

102,806

885,386

635,372

210,451,042
343,068
201,287
146,245

1,003,457,068
1,500,002
858,480
817,763

882,025,512
1,324,216
755,918
661,462

33,302,410
02,760
04,812
60,006

40,753,944
224,460
164,038
200,036

88,338,751
362,500
100,443
201,687

Although the consumption of cotton by
domestic mills registered a counter-toseasonal decline of 2.1 per cent from
December to January, the total for the latter month was
14.8 per cent larger than a year earlier and set a new high
record for that month. Consumption for January amounted
to 678,064 bales, which compares with 692,921 bales in
December and 590,4.84 bales in January last year. The
aggregate for the first six months of this season reached
3,848,195 bales, which exceeds the 3,014,381 bales consumed
in the corresponding period of the previous season by 27.7
per cent, and is larger than for any similar period on record.
Stocks of raW cotton held by consuming establishments rose
from 2,001,378 bales on December 31 to 2,066,302 bales on
January 31, and on the latter date were at an all-time high
level.

Textile
Milling

COTTON CONSUMED AND ON HAND
(Bales)
August 1 to January 31
January
January
This SOBSon
Last soason
1036
1087
Cotton-growing states:
Cotton oonsumed.... . .. . .. .
564,874
Cotton on hand Jan. 31 inConsuming establishmonts.
Publio storage and oompresses . .. ........... . .
United States:
Cotton oonsumed . . . . . . . . . . .
678,004
Cotton on hand Jan. 31 inConsuming establishmonts .
Puhlio storago and oomprosses ..... . . . ....... .
SOURCE: Bureau of Census.

407,054

500,484

3,310,162

2,527,342

1,748,008

1,212,587

6,000,474

7,710,203

3,848,105

3,014,381

2,066,302

1,436,418

6,770,351

7,844,547

The receipts of cotton at the ports of
Houston and Galveston were unusually
small in January, the combined total for
the two ports reg~stering a decline of 67.0 per cent from
the previous month and 57.4, per cent from a year earlier.
Exports reflected the usual seasonal decline from December
to J anuary and were moderately smaller than in the same
month last year. For the fi rst six months of the current
season, however, shipments from the two ports were in about
the same volume as in the same period of the previous
season.

Cotton
Movements

Exports of cotton from the United States in January
amounted to 538,280 bales, which represents a recession of
9.4, per cent from the 593,860 bales shipped in December,
and a slight decline from the 542,776 bales exported in
January last year. Total exports for this season to January
31 aggregated 3,4,35,082 bales as compared with 4,,003,597
bales during the same period last season.
COTTON MOVEMENTS THROUGH THE PORT
(Dales)
January
January
1037
1936
66,991
105,616
Receipts ..... .. . . .. . .... . . . .
221,501
168,065
Exports .................. , ..
Stooks, January 31. .... . .. . ..

OF GALVESTON
August 1 to January 31
This season
Last srason
1,576,202
1,402,532
1,215,723
877,563
723,038
749,622

COTTON-GALVESTON STOCK STATEMENT
(Bllles)
January 31,
1937
10,000
For Great Britain .......... . ..... . ..... . ... , . . . .. . . .. . . . .
7,000
For France . .... . ....... . .... . . .. .. , ... ~ . .. .... . ..... . .. .
58,000
For other foreign ports .......... . .... , . .. . .... ... .. .. .... .
6,500
For ooastwiso ports ...... ... . . . , .. . ....... . .. . ........... ,
641,538
In oompresses and depots .... ... .. ... . ... . . ...... ... . . . . .. ,
Total. .... ................. ..... .

723,038

January 31,
1936
2,300
5,600
40,700
2,000
699,022
749,622

COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
January
January
August 1 to January 31
This season
Last season
1937
1936
1,179,207
1,507,050
43,605
153,899
Roooipts . ... ....... . ..... . . . .
820,784
1,154,646
120,130
202,577
Exports . .. . . .. . .......... .. .
489,361
643,669
Stooks, January 31. .....•....

SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORT8-(Bales)
August 1 to January 31
This season
Last season
5,974,222
Rocoipts .. ... .. .. . . ........... ,', ..•... .. • ... ..•. .. . .•.. , 5,643,745
753,021
918,511
Exports: United Kingdom . ......... . ....... , .. . ......... .
538,545
498,023
Franco . ..... . .. . .... . . . ..... ................ . . .
202,229
213,236
Italy .... . .. . ............ , ... . ...... ........ . .. .
305,012
484,165
Garmany . . .. . .... . .. . .... .. ..........
424,937
622,944
Othcr Europe .. . .. . .. . .... . . ................... .
914,308
1,059,547
an ... ................. .. . .... . .. ....... . ... .
207,030
207,171
AI otbor countries ...... ... . .. .... . . .. ....... . .. .
0

•

•

•

•

•• •••

Jar

Total exports . . . . . . . . . . . . . . . . . . . . . . . .. . . .............. ..
Stocks hold at all United States ports, January 31. . . . . .• . . . . .

3,435,082
2,488,708

SPOT COTTON PRICES-(Middling basis)
(Conts p~r pound)
January, 1937
Nowyork ... . .. ... ........... . .... . ...... .
Now Orleans ...... , .............. .. .... .. . .
Dallas .. .. .. ... ........ ... ............... .
Houston .... ..... . .. . ..... . ..... . . .. . . .... ,
Galveston .... . ..... .... .... ......... , .. .. .

High
13 .33
13.40
12 .07
12.89
12.82

Low
12 .91
12 .78
12 .29
12.53
12 .46

4,003,597
2,608,756

Fobruary 15,
1937
13 .15
13 .00
12 .45
12 .07
12.68

MONTHLY BUSINESS REVIEW
A further expansion in the production of
petroleum in the Eleventh Federal Reserve District occurred during January when allowables
Were again raised to meet the increased market demand. The
output for the month rose to 44,,094,,950 barrels, which was
?nly moderately lower than the previous record established
In l\;1ay, 1933. The January figure compares with a production of 42,4.64,200 barrels in December, and an output
of 35,498,100 barrels in January, 1936. During the four
Weeks ended January 23 there were fewer new wells completed and smaller initial production of producing wells
~han in the previous four-week period. Completions in the
atest period totaled 1,016 wells of which 766 were producers of oil yielding an initial flow of 1,027,4.26 barrels
of oil.
Petroleum

~roduction at Texas fields averaged 1,252,056 barrels
dally in January, reflecting an increase of 47,485 barrels
over December and 215,656 barrels over January last year.
As compared with the previous month, production gains
Were registered at all major fields of the State with the
lcargest increases being shown for the east Texas and Texas
oastal areas. The upward trend of production in New
~exico continued during January, the average daily output
or the month rising 6,975 barrels above that in December.
~rO?Uction in north Louisiana averaged 77,997 barrels daily
unng January, which was 1,855 barrels lower than in the
previous month.
OIL PRODUCTION
(BarreI8)
January, 1037

~~\\~~xas . .. ..............

East Tex as ....... . . .... .....
South Te': · · ·· · ······ .. ·····
Texas Coasi~".:::::::::::::::
New~~~i Texas ....... . ... . .
North Lou~~i~;,i".'::::::::: :::

-

Total Di8triot ............

Amarillo

Total

Inorease or deorease over
December, 1936

Daily Avg.

Daily Avg.

Total

t 4,664
6.000

188,800
144,600
510,100
240,200
370,350

4,126,600
6,301,750
17,056,800
5,776,500
5,552,100

133,116
203,282
550,210
186,330
170,100

+
+
+
+
+

2,863,300
2,417,000

1,252,056
02,365
77,097

-+

+1,472,050
216,200
57,500

+47,485
+ 6,975
- 1,855

44,004,050

1,422,418

+1,630,750

+52,605

--38,813,750

+16,745
+ 8,030
+11,047

During the latter part of January a general advance of
10 to IS. cents a barrel in the price of crude oil was posted
at fields throughout this district. In some instances the
gravity schedule was broadened to include a further grading
of both the higher and lower gravity oils. JANUARY DRILLING RESULTS
ComProGas
We1l8
pletion8
ducers
185
105
8
North Texas ... ..... ... ... .. , ...
150
5
West Texas .. ...... .. .. .........
185
212
104
2
East Texas ........ . , .... .......
11
South Texas . ... ....... . ........
275
201
4
Texas Coastal ...... .... .........
62
06
Total Texas ... ..............
N.w Mexioo ............... .....
North Loui8iana .................

30
1
4

T.XM COMtal (40 gravity and above) ...... . .............. . .
North Texas (40 gravity and above) ....................... .
North Louisiana (40 gravity and abov.) .................... .
·Prices of oil 34 gravity and above.
SOURCE: "The Oil We.kly", Houston, Texas,

72
30
16
63
30

25,584
101,077
625,671
88,662
23,526

211
3
1

054,520
68,016
3,090

215
227

1,027,426
1,286,524

January 31,

January 31,

1037
$1.41
1.20
1.22

1036
$1.22'
1.08
1.10

The estimated value of building permits
issued during January at fourteen cities
in the Eleventh District dropped 10.2 per cent under the
large December volume, but exceeded the January, 1936,
total by 29.3 per cent. The January valuation of $5,524,,395
was, with the exception of December, larger than in any
month since March last year. Although more than half of
the month's total was represented by permits issued at one
city, there were eight cities which showed increases over
the previous month and a like number which registered
gains over a year ago. Permits issued numbered 1,600 in
January as compared with 1,914 in December and 1,644 in
the same month last year.
Building

Peroentag. ehange
valuation

Deoember, 1036
No.

Valuation

43,334
700,345
210,888
125,530
000,275
42,093
582,400
25,561
703,021
25,409
480,880
84,203
27,753
12,905

over yoar
+ 6.1
- 72 .5
- 80.8
+143 .4
- 42 .0
+183 .5
- 51.0
+500.2
+266.1
+105.1
- 15 .2
+319.4
+ 40 .7
- 31.1

3a
143
07
132
357
64
184
76
324
126
252
82
31
13

$

$4,271,546

+20.3

1,014

Valuation

No.

Valuation

10
127
02
101
301
85
124
80

$

22
154
07
81
410
47
102
82
260
69
105
73
27
7

$

7

45,078
220,002
42,200
305,481
570,753
110,340
280,231
155,717
2,006,605
52,124
415,652
353,157
30,046
8,950

Total. ... .. ..... ... .... . . ............................... 1,600

$5,524,305

1,644

00
187
110
27

712
48
6

CRUDE OIL PRICES
(Priee pcr barrel)

No.

241

053
52
11

Initial
Produotion

Failures

1,016
35
766
·Junua~total8, di8triet . ... . . .....
822
tDcocm r total8, distriot .. . .. .. . . 1,080
40
'Januarbj'gures represeat four weeks ended January 23, 1037.
!Decem r figures represent four weeks ended December 26, 1036.

BmLDING PERMITS
January, 1036
January, 1037
. . . . .. . . . . .. . . . . . . .. . . . . .. . . . . . . .. .. . . . . .

7

80,007
214,556
174,075
141,635
1,044,430
50,601
614,760
43,840
1,640,370
58,802
303,178
135,278
144,150
547,577

$6,151,868

P.reentage ehange
valuation
over month
+ 16.1
+ 2.6
- 75 .7
+115 .7
- 70 .2
+135.0

- 54 .4

+255.2
+ 76.2
- 11.4
+ 5.7
+161.1
- 72 .0
- 98.4
-

10 .2

------------------------------------------------------

8

MONTHLY BUSINESS REVIEW

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Complied by the Board of Governors of the Federa l Reserve System)

. ....

INDUSTRIAL PRODUCTION

,

NltctNT

I 40

140

130

\30

J\.

.. 0

\

110

100

120

~

\

to

IV

A

100

90

1\1/\ i'"

'\

eo

110

I

\ V

\,

70

80
70

1\ f'

.0
eo

t~1

taso

1929

193t

60
10M

1934

ID56

115&

1037

ISO

Index of physical volume of production, a diusted
for seasonal variation, 1928-1926 average
100.
By months, January, 1929, to January, 1987.

=

FACTORY EMPLOYMENT

N' em

H.II CCNT

I 20

120
110

100

I 10

h

I 00

1\

/

eo

90

/\ r./

\

'\

70
00

eo

I
VJ

70
60
60

00

Index of number employed, adiusted for seasonal
variation, 1928-1926 average
100. By month. ,
January, 1929, to January, 1987.

=

... "NT

WHOLESALE PRICES
I'CIIU,Nf

110

I 10

I

100

I00

I

00

90

Olher

~~

~

Conmodli lts

eo

80

. ""V

r;;'ootIs k.
70
~~.l
I,
""
60

70
60

V)"tV'{

eo

V"I /

I
I ...

1932.

00

Fcrm iroducts

40

40
30
1e34

1937

1936

Indexes compiled by the
Labor Statistics, 1926
date. Latest figure
February

States Bureau
=isUnited
100. By weeks, 1982
for week ending
20, 1987.

.

MEMBER BANK LOANS AND INVESTMENTS

...- "' ........

•

~,

UQMS ()IfOClU.

10

..... _ " . - - - . .

~ ue.Gort'1rJ~

~

Gwtaflt ... OI:II/taI~

':r~,,":;,", .-...
..

.t:::i=:111M

1935

1831

nM

1&:55

I

1838

PRODUCTION AND EMPLOYMENT
Volume of industrial production, 'which usually increases at this time of year,
declined from December to January, and the Board's seasonally adjusted index
was 115 per cent of the 1923-1925 average, as compared with 121 in December
and 114 in November. Steel production increased, though by less than the usual
seasonal amount, and was larger in J anuary than at any other time during the
recovery period. In the first three weeks of February output of steel increased
somewhat further. Output of automobiles was curtailed by strikes in January and
the first half of February but after the strikes were settled production rose
sharply. At lumber mills there was a considerable decrease in activity in January, reflecting in part the effects of unusually cold weather in the western lumber
regions. Production of plate glass declined further in January but toward the
end of the month the strikes which had restricted output since October were
settled. At textile mills activity declined from the exceptionally high level reached
in December, and in the meat-packing industry there was also a decrease, while
output at shoe factories increased. Mineral production was smaller in JanuarY
than in December, reflecting a: reduction in output of coal. There was a further
rise in output of crude petroleum.
Value of construction contracts awarded showed a considerable rise in January, according to figures of the F. W. Dodge Corporation, and was substantiallY
larger than a ye.a r ago. The most marked increases over December were in f,actory building, which recently has been in larger volume than at any time since
1930, and in residential building. The increase in residential building was largely
in publicly-financed apartment construction.
Factory employment and payrolls showed about the usual seasonal decline
between the middle of December and the middle of January. Among the durable
goods industries there were increases in employment at blast furnaces and steel
mills and at foundries and machine shops, while in the automobile industry there
was a considerable decline. In industries producing nondurable goods employment
declined by less than the usual seasonal amount, 'with increases at textile mills
and in the chemical industries, and seasonal r eductions in working forces in most
other lines.
DISTRIBUTION
Department store sales showed the usual seasonal decrease in January, whi~e
sales at variety stores and mail-order houses declined considerably more than JS
usual. Car ' loadings of revenue freight also declined in January, reflecting in pal't
the effects of floods. There were substantial declines in shipments of forest products, coal, and miscellaneous freight.
COMMODITY PRICES
The general level of wholesale commodity prices, which, according to the
Bureau of Labor Statistics, had advanced more than 5 per cent from the end of
October to the middle of January, showed little change from the middle of
January to the third week of February. Prices of agricultural commodities
declined slightly, while industrial commodities as a group continued to advanced'
There were substantial increases in nonferrous metals, lumber, and petroleum and
smaller increases in a wide variety of finished products, while prices of glass an
certain cotton textiles declined, following rapid increases in other recent monthS.
BANK CREDIT
Total loans and investments of weekly reporting member banks in leading
cities declined some'what further during the four weeks ending February 17,
reflecting principally a decrease in holdings of United States Government obligations. Commercial loans, following a seasonal decline in January, increased at
reporting banks outside New York City and remained practically unchanged in
New York.
On January 31 the Board of Governors raised reserve requirements for mellibel' banks by 33 % per cent, half of the increase to become effective on March 1
and half on May 1. This action completes the use of the Board's authority under
the law to raise reserve requirements.

I

I--~/

o

ItS

\I

INVESTMENTS

LOANS

r-~~y

I

of
to

Industrial activity, adjusted for seasonal changes, showed a decline in January following a rapid rise in November and December. Distribution of commodities to con~umers declined more than seasonally.

193'

Wednesday figures for reporting m ember banks in
101 leading cities, September 6, 1984, to F ebruary
17. 1987. Loans on real estate and loans to
banks excluded.

Excess reserves of member banks showed little change in the five weeks ending February 24 j there was a further increase at New York City banks and 80
decline at banks elsewhere.
The rate on bankers' acceptances was raised 1/16 of 1 per cent on February 1,
following a similar increase on January 16. Market yields on short and mediulll
term Treasury obligations also increased slightly in January and the early part
of February, while yields on long-term Government bonds showed little change.