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Monthly Bus iness Rev! OF THE FEDERAL RESERVE BANK OF DALLAS (Compiled February 15,1938) Volume 23, No.1 Dallas, Texas, March 1, 1938 This copy Is released for publicat ion in afternoon papers- M 2 ar. DISTRICT SUMMARY dential building increased 35 per cent from December to January but was 13 per cent smaller than a year ago. THE SITUATION AT A GLANCE Eleventh Feder.! Re.erve District J.nuary 1088 gunk debits to individu.l nocounts (18 oities) .. • $870,460,000 wirartment store . ales ... .. .. . .... .. . . . . .. . .. . V olesale trade s.les (six lines) . . ... ... .. . .. . . . Value of oonstruction contracts awarded .. ..... . s iO:5'i o',oOO Calue of building permits issued (14 cities) . .. " . $ 4,161,004 Commercial f.ilures (number) . ... ....... . . ... . . 25 217,000 DO~erci.l f.ilures (li.bilities) . .... .. .. . .. .. . . .lly .verage crude oil production (barrels) . .. . . 1,530,732 Percontage ohange from Jan., 1087 Dcc., 1087 1. 8 - 11.3 0 .2 -54. 1 - 10 .3 - 1.5 + 37.3 -44.5 - 24 .7 - 21.8 + 127.3 + 31.6 + 410.7 +20 .2 7.0 .1 + + Mixed trends in business and industry in the Eleventh District were in evidence during January. Department store ~ales, after allowance is made for the usual seasonal change, Increased in January and were at the highest level in recent years. On :the other hand, wholesale trade, which fai'led to show 1'he customary gain from December to January, registered a decrease of 10 per cent from the volume in January last year. Debits to individual accounts at banks in principal cities declined by more than the usual amount in January, and were 2 per cent smaller than in the corresponding month of 1937. The number of commercial failures and the amount of indebtedness involved increased in January and were considerably larger than a year ago. The value of construction contracts awarded in the Elevalthough 45 per cent under the large volume exceeded the total in the corresponding month last year by 37 per cent. As in other recent months, public works and public utility construction represented a considerable proportion of the total, whereas at this time last year the volume of these types of construction was very small. FoUoWiing the decline in the preceding four months, resi· ~nth District, lD December, Daily average production of petroleum in this district remained at about the December level during January, but declined considerably in the first half of February. In the latter period the production rate was about 5 per cent under that in February last year. The loans of weekly reporting member banks in the Eleventh District declined furt!her by about $6,000,000 between January 13 and February 9; but on the latter date they were $26,000,000 higher than on the same date in 1937. Although their investments showed littJe change during the four weeks, they were $24,000,000 below holdings on February 10 last year. Gross deposits of all member banks in this district increased further during January and the average for the month exceeded IfuJat of a year ago by $36,700,000. Member bank reserve balanees declined considerably after the middle of January but by February 15 they had risen to $189,555 l 000, which was only $1,901,000 under the total on January 15. The actual circulation of Federal Reserve notes amounted to $81,324,000 on February 15, which was $1,687,000 lower than a month earlier and $6,460,000 below that of. a year ago. Weather conditions generally have been conducive to the growth of winter crops and range vegetation. Moisture sup· plies, although deficient in a considerable area of rhe western portion of the district, are unusually favorable in most sections. Livestock have held up well and are in about average condition. Market prices of livestock have continued weak with the trend toward lower levels. BUSINESS The combined sales of fifty-three report· ing wholesale firms operating in six lines of trade in this district evidenced a conb-ary-to-seasonal decline of 1.5 per cent during January, and business was 10.3 per cent smaller than a year ago. The dollar volume of collections was slightly larger than in J,anuary, 1937, but smaller than a month earlier. In relahon to accounts outstanding, collections were somewhat lIlnaller than in either of the two comparative months. The Trholesal e Trade combined inventories of reporting firms on January 31 were 4.4 per cent smaller than a year ago, due principally to lower stocks at dry goods and grocery establishments. The business of wholesale grocery firms continued in about the same volume as in December, but it was lower than in January last year. The demand for dry goods increased considerably less than is usual in January, but sales of hardware evidenced a counter-to-seasonal increase of 13.6 This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 per cent. In both instances, however, sales were below those of a year ago. Although the distribution of machinery and equipment reflected an increase of 4.0.0 per cent over the previous month, sales were 41.4 per cent lower than in January, 1937. Sales of drugs and electrical goods were somewhat smaller than in December, but the distribution of drugs continued substantially above that of a year ago, while the demand fo r electrical goods was about the same. from December to January, and were 9.2 per cent greater than in the opening month: of 1937. Reflecting the active buying during the month, this bank's seasonally adjusted index of department store sales rose in January to 113.8 per cent of the 1923-1925 average, which is the highest point reached in recent years. This figure compares with 111.9 per cent in August last year, 106.4, per cent in December, and 106.1 per cent in JanuaTY, 1937. Preliminary reports indicate that business in the first two weeks of February was about 6 per cent larger than in the corresponding period last year. CONDITION OF WHOLESALE TRADE DURI NG JANUARY, 1938 Percent_II. of inert... or d •• re.... inNet Sales J anuary, 1938 compared with Dco., Jan., 1937 1937 .8 Groceries ..... . .. .. ..... . - 7.2 + 18.8 Dry goeds .... ... ... . ... . -23. 1 Maohinery, oquipment. and H~rJ';~e~c~~~~~.e.l~t.r~~I~ ~U tfg:~ Stocks J on. 31, 1938 compared with Jan. 31, Dec.3 1, 1937 1937 -14. 9 - 3.6 - 13.3 +15 .8 + '8:il Drugs .... .. .. ... .. .. .. .. + 11 .5 - 14 .2 + 8 .0 Electrioal goods . .. .. .. .. . + .9 -27.2 + 6.9 SOURCE: United States Deportment of Commeroe. +iiJ:s 2.0 - Ratio Jon. collections to aooounts outatnnding Jon. 1 113 .3 38.7 Inventories of reporting firms, which usually show little change from December to January, declined further by 5.8 per cent during the past month, and on January 31 were 4.4 per cent lower than a year ago. The adjusted index of department store stocks declined for the third consecutive month and was at the lowest level since October, 1936. 10.1 49 .2 88.1 5. 6 Collections on open accounts declined seasonally during the month, and were at a slower rate than in January a year ago. The ratio of January collections to open accounts outstanding on the first of the month was 4,0.7 pel' cent, as against 42.4 per cent in December, and 41.3 per cent in January, 1937. Payments on installment accounts declined from 16.2 per cent in December to 13.9 per cent in January. Consumer demand for merchandise at department stores in the principal cities of the Eleventh District was unusually active in January. Sales declined considerably less than usual Retail Trade BUSINESS OF DEPARTMENT STORES Total sales (pcrccntage): January, 1938, compared with January, 1937 ..... .. . . . . . .. . .. . .. . ..... . ......... . .. . ... . January, 1938, compared with Dccombcr, 1937 .. .. ........... . . . ... . ... . .... .. ..... . . . .. . Credit sales (percentage) : January, 1938, compared with January, 1937 .. ... . . ... .. . . . . .... . ... . . ... . . .... . . . ..... . January, 1938, compared with December, 1037 ...... ... ... ....... . ... ... .. ... .. ... .. ... . . Stocks on hand at end of month (percentage): January, 1938, compared with J anuary, 1937 ... .. .. . .. . ........ ..... . .. .... ..... . .. . . .. . J anuary, 1938, compared with Deoember, 1937 .... .. . . ..... .. .. ..... . .... . ............. .. Stock turnover (rate) : Rate of stock turnover in January, 1937 ............ . ..... .. .. . . .. . ............. . ... ... . . Rate of stock turnover in January, 1938 ....... .. .. . .. .. ... .. .. : . ... .. .......... . ..... .. Ratio of January collections to open accounts reccivoble ond outstanding J anuory 1, 1938 .. .. .. . . . Ratio of January collections to installment nooounts reoeivable and outatanding January I, 1938 .. . Indexes of department store sales: B~~~i~:t~=f.";:'~:::~ri919f·. : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : ~~~:~~=Po~~~:::~ri9~~~~ : : ::::::: ::: : :'::: : ::::: : ::: : : : : : :::::: : :::::: : :.: :::: :: ::::: : DaUns + 7.0 - 52 .5 Fort Worth + 5.6 - 62 .8 Houston +11 .9 - 51.7 Son Antonio +19 .8 -46.7 Others +4.4 - 57 .5 Totol Di. trict + 9.2 -54 . 1 + 0.3 -48 .6 +14 .3 - 58. 7 + 13.7 -40 .7 +14 .7 -48.2 + 5 .6 - 56 .7 +10.7 -50 .9 - - 8 .6 -13.5 --14.5. 1 - 2.5 +11.0 - - 2.3 8 .8 .28 .30 38 .1 15 .7 .23 .25 37 .7 9.1 . 27 .30 43 .0 .27 .37 45 .0 12 .5 8 .3 .1 .22 .24 43. 4 15.7 4.4 5.8 .26 .29 40.7 13.9 192.9 92.6 120.6 107.7 214.4 80 .5 121.1 108 .8 161.9 89.9 98. 7 101.0 154 .8 84 .0 90 .0 92 .3 18..0 86.5 106.4 113 .8 60 .5 55.4 68.8 63 .7 59.4 51.6 72.4 60 .0 30.7 39 .0 42 .7 45.3 46 .6 52.8 52.4 57.4 57 .5 55 .2 66 .1 63 .4 I ndexes of deportment store stooks: ~~~j~:::=R~~~~~i9~~3~: : : :::: :::::: :::::::::::::::::::::::::::::: ::: :::::::::: :: ~~i~~t~=r.,e:~:::~~ri91~3~: :: : : : : : : : : :: :: :: :: : : : ::: :: : ::: : ::: ::: : : : ::: : : ; :::: :: :: : : :: : AGRICULTURE Since the first of the year field work has been retarded by frequent rains and wet soil, and land preparation in many areas is later than usual. On the other hand, moisture conditions are unusually favorable in most areas. Crop Con.· ditions Small grain crops generally made rapid growth during the past month, and are now in good condition in practically all sections of the district except the North Plains section of the Texas Panhandle. In the latter area the condition of wheat is very poor, due to the extended drouth and the destructive effects of recent dust storms. Winter wheat in eastern New Mexico is also in need of additional rainfall. During the fall of 1937 commercial vegetable crops in south Texas were affected adversely by the drouth"'which prevailed in a large area of the vegetable-growing territory. Since the first of December, heavy rains have fallen in all parts of south Texas, and, as a result of the ample moisture and favorable weather, winter vegetables have shown a decided improvement. Planting of spring. vegetables has made good progress and some crops are earlier than usual. TIre Bermuda onion crop is late, but with favorable growing conditions the effects of late planting can be largely overCONDITION OF COMMERCIAL TRUCK CROPS IN 'fEXAS (Per cent of 100) Feb. I, Feb. l, 1938 1937 Beets .. .. . . .... .... .. . .... . ...... . ........... .. . 78 83 72 80 81 81 80 71 70 62 72 71 69 82 · 82 SOURCE: United Stotes Deportment of Agrioulture. ~;f;~;~L~~~:. ~ ~ ~ ~::: ~ ~: ~: ~ ~: ~ ~:: ~ ~: ~:: ~ ~ ~ ~:: ~ irEi~~::~: : : : :: :::: ::: :: : : : : ::: :::: : :::::: : : : Jao. I, 1938 73 76 71 87 81 72 67 76 MONTHLY BUSINESS REVIEW 8 come. Shipments of fruits and vegetables from sou~h Texas have continued in considerably smaller volume than a year ago. For the current season shipments have averaged about 13 per cent lower than in the preceding season. area of the Texas Panhandle, portions of eastern New Mex· ico, and southern Arizona, moisture is adequate and pros· pects are favorable for good spring grazing. In the dr y areas, rains will be needed to start the growth of spring feed. Favorable moisture conditions and good growing weather during Janual'y brought about an improvement in Texas grapefruit, and, according to the Department of Agriculture, the cr op has "sized up" betLer than was anticipated earlier in the season. On February 1 the estimated production was increased to 9,750,000 boxes, as compared with an actual harvest o~ 9,630,000 boxes last season. The indicated yield of oranges remained unchanged from that of a month earlier at 1,900,000 boxes, which is 100,000 boxes less than the record production last season. Citrus trees were reported to be in excellent condition, with a light bloom in evidence by the end of January. 1'he generally mild temperatures have been very favor· ' able to livestock. Cattle and sheep are coming out of the winter in good condition and are expected to make rapid gains when spring grass becomes available. Supplemental feeding has been necessary in the dry areas and in south Texas where recovery from the 1937 drouth has been slow, but in other areas it has been light. The favorable prospects for spring grazing indicate an early supply of grass-fat cat· tle, but, according to the Department of Agriculture, the number available for shipment will probably be smaller than last year. Although prices of agricultural products declined in December to a level considerably below that of a year eal'lier, total farm income from the sale of principal farm pr oducts in the five states wholly or partially attached to the Eleventh District continued in substantially larger volume than in the corresponding month of 1936. This gain is attributable to larger receipts from the sale of farm crops, as income. from the sale of livestock and livestock products reflected a decline of 5.8 per cent, due to reduced mar~e tings and the lower level of prices. Government benefit payments to farmers amounted to $517,000 during the month, as compared with $3,252,000 in December, 1936. Cash Farm Income RECEIPTS FROM THE SALE OF PRINCIPAL FARM PRODUCTS (In thou.ands of dollars) Raceipts from: Total Livestook nod liveFnrm receipts stook produets crops Deo. 1037 $ 2.366 2,153 3.456 5.530 12.005 Dco. 1036 S 2,302 2,176 2,027 7,320 12,355 Doo. 1037 S 6, 624 12,543 5,011 10,876 46,013 Deo. 1036 S 6,10a 13,631 5,448 10,024 35,030 Totnl five stntes . ... $56,457 $44,137 525,510 BOURCE: United States Department of Agrioulture. $27,080 581,067 571,226 Deo. Deo . . 1036 1037 A' S 3,801 S 4,258 11,455 10,390 ~~i~r:n'~ ,' .' 2,521 2,465 New Mexico . ....... . ... . 3,505 5,346 ~klnhomn .. . .. ......... . 22,675 84,008 Olns .. ...... ; .... ... .. . Stnte :::: :::::::: : Ranges in most sections of the Eleventh District have shown a considerable improvement since the first the year and are now in about average condition. With the exception of the North Plains Livestoclc of Movements and Prices Although considerable declines from a year ago were registered in the January receipts of hogs and calves at the Fort Worth market, total receipts of all classes of livestock were larger than the average for that month. As compared with the preceding month receipts of hogs and sheep reflected substantial seasonal increases, and marketings of cattle and calves showed smaller than average declines. The downward trend of cattle prices continued through rhe first week in February, but considerable improvement in activity and prices occurred in the subsequent week when receipts dropped off. Hog prices at the middle of February were about the same as a month earlier, although the mar· ket showed wide fluctuations during the period. Lamb prices continued weak with the trend toward a lower level. FORT WORTH LIVESTOCK RECEIPTS (Number) Janunry Change ovor Deeembor Chnngo over Jnnunry 1038 1037 year 1037 month 53,550 51,323 + 2,227 Cattle . . ..... . . . . .• ... . . . 58,003 -5,353 20,814 - 3,098 26,716 82,716 Calves . .... .... ........ . - 0.000 27,619 37,645 - 10,026 Hogs . ...... . ... .. ...... . 10,900 + 7,629 34,587 34,516 26,523 Sheep ..... . .. . . . .. . . ... . + 71 +8,064 COMPARATIVE TOP LIVESTOCK PRICES (DoUar. per hundredweight) January January 1038 1037 .. ...... ........ ..... .. ..... .. ... .. $7. 85 Beel steer. SO. 75 7.25 Stoeker steers ...... ........ ........ ......... ... . 7.15 8. 00 Heifers and yearlings . .. . .... . ..... .. .... . ..... .. . 0.85 Butoher cow. ... . .. ....... .. ...... . ..... .. ..... .. 5.35 6.00 7.50 Cnlves . . . .. . .. .. ..... ... . ... . . .•... .. ... . . . . . . .. 7.05 8.50 10 .35 10.00 7.50 f:':bs .. ::::::::::::::::::::::::::::::::::::::: : Dooembor 1937 18.25 7.10 8. 75 5.50 8. 00 8. 10 8.25 FINANCE After the middle of January, reserve bal. January 15 and February 15, and on the latter date were ances of member banks in the Eleventh $6,4.60,000 smaller than a year ago. District declined considerably, and in the CONDITION OF THE FEDERAL RESERVE BANK first half of February averaged $186, (In Ihoua.nde of dollara) 000,000, or nearly $4,500,000 lower than th.e averag~ in the Feb.15, Feb. 15, Jan.15, first half of January. During the same penod reqUIred reo 1038 1937 1038 serves also declined, but by a smaller amount than reserve Totnl ensh roserves . ... .. . .. . . . . . . . . . ........... . . SlOI,745 $104,213 $lO7,734 242 Discounts for member banks .. . . . ... . : . .• . •. . . . ... . 41 132 balances with the result that excess reserves declined by Otber bills diseounted . .. . .. . ...... ... ...... . .. .. . 2 None None 030 Industrinl advanoes .. .. . . .......... ... ... .. . ... .. . 1,290 040 only ab~ut $2,000,000. The earning assets of the Federal Bills bought in the open market . . ..... . ........... . 16 86 10 04,006 Reserve Bank on February 15, amounting to $100,958,000, United States Government securities . .. . . •.......•.. 00,708 9~/08 All other investments ...... . . . ........... . .... . .. . None 3 Nono Was $102,000 larger than a month earlier, reflecting an in- 'I'otnl earning lISSets . . . . ... . ... . . . . . . . . . ......... . 100,058 96,305 100,850 180,555 160,061 bank reserve deposits .... . . .. . . . . . . . .. •.. . 101,456 crease in discounts for member banks. Federal reserve notes Member 81,324 Federal Reserve notes in notual eireulntion .. ... . .. . . 87,784 83,011 269 486 in actual circulation declined further by $1,687,000 between Commitments to make industrial advanees .. . . .. . .. . 260 Operations 01 the Federal Re· serve Bank MONTHLY BUSINESS REVIEW 4 Total loans of weekly reporting member banks in leading cities of the Eleventh District declined further during the four weeks ended February 9, but the rate of decline was much smaller than during the first two weeks of January. Since the turn of the year the contraction in loans has amounted to approximately $17,000,000, of which $11,300,000 was in commercial, industrial, and agricultural loans. This recession in loans is somewhat smaller ,t han that which occurred in the corresponding period last year, and on February 9 total loans were about $26,000,000 greater than a year ago. Condition of Member Banks in Leading Cities Total investments of these banks, which had been reduced considerably in the last four months of 1937, have shown relatively little change since the first of the year. Although holdings of direct obligations of the United States Government have declined $4.,000,000, investments in Government guaranteed obligations and in other securities have risen $1,400,000 and $1,200,000, respectively. As compared with a year ago, total investments on February 9 were about $24,000,000 smaller, reflecting chiefly a reduction in holdings of direct obligations of the United States Government. Adjusted demand deposits of these banks fluctuated widely during the past two months. Following the usual year-end decline, which amounted to about $24,000,000, these deposits increased $20,000,000 during the first three weeks of January, but declined $7,600,000 in the subsequent twq weeks. On February 9 they were about $11,700,000 below the high point reached at mid-December, but were $8,600,000 greater than a year ago. Interbank deposits were reduced $10,500,000 between January 5 and February 9, while United States Government deposits and time deposits showed little change. Their balances with other banks have been increased by about $23,400,000 since the turn of the year and are now at the highest level since last February. than in January, 1937. Although gross demand deposits averaged slightly lower in January than in December, time deposits reflected a noticeable increase. GROSS DEMAND AND TIME DEPOSITS 0,11 MEMBER BANKS (Average of daily figures- in thousands of dollars) Combined Total 1937 - 1038 - Gross demand deposits January ..•...... $1,094,826 February ....... 1,079,858 March . .. ...... . 1,051,072 ~ril ........ 1,043,750 ay ........... 1,035,133 Juno ...... .. .... 1,037,335 July.. .. .. .. .... 1,053,745 August .... .... 1,060,580 Septembor ..... 1,089,891 Ootober . .. ...... 1,110,345 November .... .. 1,106,106 December .. .... . 1,117,735 January ... ..... , 1,116,242 Reserv. City Bank. Time deposits $199,824 1P9,798 190,134 199,683 200,293 201,800 201,893 203,704 208,581 210,451 211,488 211,810 215,116 Gross demand deposits 5021,186 607,432 587,506 578,110 569,013 573,110 584,117 586,477 001,677 613,865 605,120 607,769 008,648 Country B.no Gross demand deposits $473,640 472,426 404,376 465,646 465,520 464,225 460,628 474,103 488,214 496,480 500.086 509,066 507,594 Time deposits $100,720 100,355 108,501 108,562 109,344 110,625 110,629 111,312 11 4,828 116,181 117,133 11 6,093 119,174 DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of doUars) Pereentage January January ehange over Deoember 1038 1037 year 1037 Abilene................. $ 8,390 5 7,660 + 0.5 S 10,701 Austin........ ... ... .... 20,006 20,417 + 0.8 34,063 Bcaumont.. ............. 25,674 24,091 +2.7 20,780 g~"~~~~ . :::::::::::::: 24~:~~~ EI Paso. ................ Fort Worth.............. Galveston.............. . Houston ... ............ : Port Arthur.... ......... Roswell........ ......... San Antonio...... .. ..... Shreveport. . . .. .. . ... .. . Texarkana·.............. Tucson.................. TYaleeor.... .... ........ . ...... . ....... .... W, Wiohita FaUs............ 28,160 05,753 28,284 219,108 9,682 3,456 68,095 49,421 7,822 11,978 12,040 14,310 17,705 20m~ 30,368 88,304 20,583 222,231 0,186 3,000 70,199 40,000 0,163 11,500 14,138 15,902 ' 15,333 =1~ :~ - 7.2 + 8.3 - 4.4 - 1.4 + 5.4 - 4.2 - 3.0 + .9 - 14 .0 + 3.0 - 8.5 - 10 .0 +16. 1 28~:m 31,900 105,508 33,006 247,010 10,307 4,929 73,874 53,071 8,422 12,085 15,352 16,401 18,838 Time deposits 590,068 90,443 00,r.34 01,121 00,049 01,175 91,204 92,392 9a,753 94,270 94,355 04,817 96,041 Percentage over month -22.3 - 14 .8 -4.1 ohang~ :::lt~ -12.0 - 0.3 -10.1 -11.0 - 0.1 -20 .2 - 7 .8 - 7.0 - 7.1 - 5.6 - 15.7 - 12.7 - 5.5 Total........... 1879,469 $805,805 - 1.8 SOOI,102 -11.3 ·Inoludes the figures of Iwo banks in Texarkana, Arkansas, loc.ted in tbe Eightb Distriol. SAVINGS DEPOSITS CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES January 31, 1938 (In thousands of dollars) Total loans and investments .................••.••• Total loans . .. . .. .... . .................... ...... . Commorcial, industrial, and agricultural loans .... . Open market paper .............. . ............. . Loans to brokers and dealers in securities ...... . Other loans for purohllSing or onrrying seourities . .•. f.e:~~~t:.~0:aD9 .. :::::::::::::::::::::::::::: :. All other loans ................................ . United States Government direot obligations . .... . Obligations fully guaranteed by United States Gov't . Other securities .. ......... . .................... . . Reserves with the Federal Reserve Bank ...... .. ... . Balances with domestio banks .. . ........... .... . Demand der.osits-adjustedt .....................• Time depOSIts .... .. .............. ... .......... . United States Government deposits .............•• Interbank deposits ........................... . Borrowings from the Federal Reserve Bank Fob.9, 1938 1490,662 235,815 149,311 2,323 2,745 14,508 20,399 230 40,299 173,040 29,839 51,368 109,017 181,798 395,254 128,058 20,815 Feb. 10, 1937 1488,540 18~~~~ 19~~~~ 21O~069 2~844 . 22,753 208 192,864 30,120 55,478 107,082 184,701 286,667 120,814 29,482 Jan. 12, 1938 $490,109 241,805 154,228 2,063 2,905 14,900 20,438 162 46,503 174,010 29,440 50,314 117,320 170,140 Beaumonl ............... D.Uas ................. . EI Paso .... ............. Fort Worth Galveston ..• ::::::::::: : Houston Port Arthur.' : : : : : : : : : : : : San AntoDio ............. Shreveport .............. W•• o ....... .... .. ...... Wiohita FaU.. . .......... All olhers ............... Tolal. ........ ~90,672 128,231 21,820 18~~~~ Number of reCOrling anks 3 8 2 3 4 10 2 5 3 3 3 70 110 Number of savings deposilors 9,659 89,732 15,843 37,631 ~8,250 71,278 5,831 22,873 24,408 0,280 0,074 58,126 --309,885 Pereentage ohanf.e in savings dopo,its rom_ Amount of sBvings deposits $ 3,735,838 25,979,513 8,208,173 13,018,288 11,276,908 28,473,508 2,531,002 17,147,720 11,102,345 4,848,753 3,404,445 28,728,741 Jan.31, 1937 + 3.2 - 1.0 + 8.4 + 3.8 + 5.0 +1.1 + 8.0 + 7.4 - 2.1 - 0.1 .1 + 5.5 $158,456,314 + 2.5 - Deo.31, 1937 + .1 - 1.6 -1.4 .9 + 1.0 .8 _+ 5.6 .1 + .6 + 5.3 .3 + .04 - .2 - Following a non-seasonal recession in December, outstanding acceptances exetInoludes all demand deposits other than interbank and United States Government, los. cuted by member banks in this district cash items reported as on hand or in process of eolleotion. declined less than usually in January. Acceptances BUPported by domestic shipment and storage of goods increased slightly; but those based on import and export transactions, In contrast with the decline at this season . which constitute a relatively small part of the total, declined Deposits of last year, the daily average gross deposits to the lowest level in almost two ye'ars, aggregating only Member Banks of member banks in this district increased $316,677. On January 31 total acceptances outstanding further by about $1,800,000 in January. The average for amounted to $2,384,177, as against $2,509,632 on December the month was $1,331,000,000, which is $37,000,000 greater 31, and $1,553,736 on January 31, 1937. ·Comparable figures not available. Acceptance Market MONTHLY BUSINESS REVIEW DISCOUNT RATES CHARGED BY MEMBER BANKS DURING FEBRUARY, 1038 Provailing ratcs: Dallos Fort Worth EI Poso Rato obarged oustomors on prime oommercial papor suoh os is now eligiblo for redisoount undor the Fedoral Reserve Aot ..................... . .. . . . . . . ................ ........... . ....... . 5-6 Hi-6 2*-8 Rate oharged on loans to other banks sooured by bills receivable .............................. . 3-6 6 Rate on loans seoured by prime stook exohango or other ourrent collatornl (not inoluding loans placed in othor markets through oorrcsponding banks): Demand .................................. . ... . ............................ . . . . .. 6 Time .... ............ . .......... . ... . ..................... . ...... . ............. . 5-8 Rato obargcd on oommodity papor soourod by warehouse rooeipts, eto . . " ... .... ...... . ......•.• 6-8 Rate on oattle loans .. ... .. . ...... . .................... . ............ . ................... .. 5-8 5 Houston San Antonio Waeo 3-6 5-7 6 4-6 3 3-6 3-7 ' 1* 6 6-8 5-6 5-7 5-8 7-8 4*-6 5-8 3-8 8 INDUSTRY Receipts of cottonseed at both Texas and United States mills continued in unusually large volume during January, and mill operations showed about the same percentage increases Over a year ago as the average gains for the six months of the current season. Crushings of cottonseed and production of products at Texas mills were about 60 per cent greater than in January last year, and at United States mills they were approximately 28 per cent larger. January shipments of products from the mills, which were nearly as large as production during the month, exceeded those of a year ago by a wide margin. While mill stocks of cottonseed oil and linters were materially higher on January 31 than a year ear lier, ,stocks of hulls and cake and meal were smaller. Coteonseed Products STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Texas United States August 1 to January 31 Lost seoson This soason Cottonseed rooeived at mill. (tono) ..................... Cottonsoed orushed (taus) . . . .. Cottonseed on hand Jan. 31 1,546,517 1,221,163 881,732 804,987 August 1 to January 31 Lost season This senson 5,710,704 4,322,085 4,222,869 3,364 ,155 348,226 86,621 1,430,194 880,640 Crude oil (pounds) .. . ...... 355,034,200 572,260 Cake and meal (tons) . .... . . 310,447 Hull. (tons) ............... 250,435 S Lintors \runllillg bales) ...... tocks on IOnd Jan. 31: Crudo oil (pounds) .. . .. . ... 25,031,854 75,501 Cake and moal (tons) ....... 47,271 Hulls (tons) ....... , ....... 110,570 Linters (running bales) .. . , .. SOURCE: Bureau of Consus. 226,663,685 370,015 214,372 173,041 1,313,737,258 1,027,158 1,105,684 982,887 1,003,684,642 1,501,007 858,870 817,505 13,868,505 78,733 55,733 61,151 83,425,620 211,995 127,180 461,404 40,753,944 224,328 164,287 200,475 Pr~~~~li;~ ~(ri~od,;o~; ....... Cotton mill activity in the United States, when adj usted for seasonal variation, continued to decline in January. Actual consumption during the month, which amounted to 434,740 bales, was about the same as in December, whereas a substantial increas~ usually occurs at this season. In comparison with a year ago the January consumption showed a decline of 36 per cent. Total consumption for the first half of the current season aggregated 3,085,298 bales, which is 20 per cent lower than in the same period last year. Mill stocks of raw cotton showed a further increase during January, but at the end of the month they were 15 per cent smaller than a year ago. Textile Milling COTTON CONSUMED AND ON HAND (Bales) August 1 to January 31 J nouary J nnuary This season Last season 1938 1037 Cotton-growing states: 373,080 Cotton consumed .......... . Cotton on hand Jon. 31 inConsuming establishments. Public etorago and OOIDpresses . ............ . . . United States: 434,740 Cotton consumed .... . .... . . Cotton on hOlld Jail. 31 inConsuming cstnblisbrnellts. Publio storage and oomprosses ........ .. ..... . SOURCE: Bureau of Conaul. 565,270 678,786 2,631,857 3,228,525 1,480,994 1,755,065 11,684,003 6,689,043 8,085,208 3,8G5,288 1,702,609 2,073,670 11,771,740 6,778,820 Despite a sharp reduction in the movement of Government financed cotton to the ports of Houston and Galveston, total receipts declined considerably less than usually from December to January, and were almost three times greater than in the initial month of 1937. The nal'rowing spread between the Government loan price and market price for cotton induced a larger volume of spot sales, which resulted in a larger movement of privately-owned cotton to concentration points. Exports of cotton from these centers continu~d to decline, the month's total being a third smaller than in December and a fourth smaller than in January last year. During the first half of the 1937-1938 season the combined shipments were 6 per cent lower than in the corresponding period last season. Stocks of cotton at these ports continued . to accumulate, and on January 31 were 52 per cent greater than a year ago. Cotton Movements Although foreign consumption of cotton has declined somewhat in recent weeks, exports from the United States were well sustained during January_ The prices of American cotton continued generally favorable in relation to prices for foreign grown c~tton, and European countries are apparently building up their stocks of raw cotton. Exports anlounted to 647,481 bales during the month, which represents an increase of 20 per cent over those of a year ago. During the first six months of the current season shipments aggregated 3,832,24,7 bales, as compared with 3,435,082 bales in the like period last season. Cotton prices advanced further in January and the first half of February, and are currently at the highest level since the early part of September last year. COTTON MOVEMENTS THROUGH THE PORT (Bale.) January January 1938 1937 162,002 06,991 Reoeipts ......... . ......... .. 131,210 221,501 Export.. ....... . . . ......... . Stooks, January 31 . . ........ . OF GALVESTON August 1 to January 31 This soason Lost season 1,662,872 1,576,202 1,215,723 1,022,072 037,780 723,038 COTTON-GALVESTON STOCK STATEMENT (Bftlcs) Jaauary 31, 1938 For Great Britain .•. " . . . ... . . . , • , .............. . .... . . . . 4,000 4,200 For Franoe .... . .................................... " .. . 46,700 For other foreign ports ................................. .. For ooostwise ports ..... ..... . .. .. ................. . .....• 2,000 In oompresses and dopots ............................. . 880,880 Total. ................................ " ... ". 937,780 January 31, 1037 10,000 7,000 58,000 6,500 641,538 728,038 COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) January January August 1 to January 31 1937 1038 This Bo..on Last sooson 43,605 165,481 1,590,252 1,170,207 Reoeipts ............... " " . 120,130 Exports . ................... . 123,966 887,881 820,784 Stooks, January 31. ... " .... . 902,130 480,361 MONTHLY BUSINESS REVIEW 6 SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORT8-(B.leo) August 1 to January 31 This season Last season 5,543,745 Receipts ................ ............................. . .. 6,460,757 763,021 Exports: United Kingdom ..... ......................... .. 1,195,120 614,813 538,545 Fronco ...............• ............. . ...... ..... 333,268 202,220 Italy .... ............... .......... .... ...... . 548,317 3~5,012 Germany ..................................... . 560,861 424,937 Other Europo . . . . ........................ ..... . . 228,505 914,308 an ....................................... . 342,363 207,030 AI otbor countries ......................... . .. Jar Total exports. ........................................... Stooks held at all United States ports, January 31. ..... , .. . .. 3,435,082 2,488,798 3,832,247 3,219,586 SPOT COTTON PRICE8-(Middllnll basia) (Cents per pound) January, 1938 Now York ............................... . New Orleans ............................ . DaUas ................. . ................. . Houston .............................. . Galveston . . .................. ............ . High 8.72 8.82 8.27 8.60 8.50 CRUDE OIL PRICES (Prioe po!' barrol) Fob.15, 1038 8.93 9.07 8.52 8.77 8.77 Low 8.38 8.50 7.83 8.28 8.23 Following the sharp decline during the final four months of 1937, production of crude oil in the Eleventh District showed little change from December to January, as substantial increases in output at East Texas and north Louisiana fields were offset by declines at fields located in the other geographical divisions of the district. In the latter part of January, however, Texas proration officials ordered a shut-down of all Texas fields for six consecutive Sundays, and February production aIlowables for the Louisiana and New Mexico fields were reIncrease or decrease (rom Deoember, 1937 January, 1938 North Te.,." ............... . WeotTe.,." .............. .. East Texas ....... ...... .... . South Texas ......... . ...... . Texas Coastal ........... .. Total 4,311,800 6,930,450 17,298,750 7,132,050 5,905,650 Daily Avg. 130,091 223,853 558,024 230,066 193,408 Total -162,550 - 30,400 +545,800 -471,300 - 12,800 D.ily Avg. - 5,243 081 +17,606 - 15,203 413 Total Texas ...•... New Mexioo ................ . Norlh Louisiana 41,677,700 3,320,400 2,454,600 1,344,442 107,110 79,180 -131,250 - 7,150 +112,150 - 4,234 230 + 3,617 47,452,700 1,530,732 - 26,250 - Tol.1 Dialricl 847 JANUARY DRILLING RESULTS Number of weU. Inilial - - - - - - - - - - - - - production ProComGas Fail(barrel. pletiona ducere d.ily) Wells ures 240 167 20 62 81,221 North TexlIII ................. .. 205 247 2 40 164,551 West Texas 272 1 286 13 1,116,652 Easl Texas .. ::::::::::::::::::: 222 134 16 72 48,348 South Texas .................... 138 109 24 5 45,004 Texas Coast.l ........... ... .. Total Texas ........... New Mexico .................... North Louisi.na . ............. 1,142 48 48 887 44 40 44 1 5 971 50 distriot ........... 1,238 911 48 t Deoem totals, district .... . ...• 1,178 ·J.nua~figures represent five weeks cnded J.nuary 29, 1938. tDeoom .r figures represent four weeks ended December 25, 1937, .J.nua~ota\s, 211 3 3 1,455,866 20,503 27,095 217 210 1,512,464 1,356,518 $1.20 1.27 1.41 1.08 1.22 J.nu.ry 81, 1937 11 .20 1.27 1.41 1.08 1.22 Building Residential building in the Eleventh District, after declining sharply in the last four months of 1937, increased 34.7 per cent from December to January. Although the month's total was 12.9 per cent below that for January last year, it was higher than in any other January since 1930. The bulk of the awards for the month was for one family dwellings. Non-residential construction, which was at a high level in December due chiefly to the large awards for public works and industrial buildings, declined considerably in January, but it was 76.8 per cent above the total for the same month last year. The total value of construction contracts awarded during the month amounted to $10,54.6,000 as compared with $19,007,000 in December, and $7,679,000 in January, 1937. Following a substantial increase from November to December, the valuation of building permits issued at fourteen princiopal cities in the Eleventh District declined in January by an amount considerably larger than the average recession for that month. While the total valuation continued noticeably below that of a year ago, eight of the reporting cities registered increases. The value of permits issued in January aggregated $4,161,994" which represents percentage declines of 21.8 and 24.7, respectively, from that of a month earlier and a year ago. VALUE OF CONSTRUCTION CONTRACTS AWARDED (In thousands of dollars) January J.nu.ry 1938 1937 Eleventh Distrio~total. .. .•. .. •• : ....• .. . .. 5 10,546 5 7,679 2,944 Residential. ..... . ..... .. ............... . 3,380 7,602 All other .... . .......................... . 4,299 United States·-tot.l.. ... . ................ . 195,472 242,710 Residenti.l. .. .. ......... .. ...... . ... ... . 36,207 78,407 All other ........ . ........ . ............ . . 159,265 164,312 "37 st.tes CASt of the Rooky Mount.ins SOURCE: F. W. Dodge Corpor.tion. BIDLDING PERMITS J.nu.ry, 1938 Janu.ry, 1937 No. 21 181 109 120 426 47 188 147 234 110 206 102 47 40 V.lu.tion $ 51,518 447,723 81,079 207,085 800,506 50,039 720,289 121,539 1,167,795 82,328 244,222 109,950 40,110 37,811 No. 19 127 92 101 301 85 124 80 241 99 187 110 27 7 Vnluation $ 45,978 220,092 42,260 305,481 579,753 110,349 280,231 155,717 2,906,605 52,124 415,652 353,157 39,046 8,950 Poroentage ohange v.luation ovor ye.r + 12 .0 +103 .4 + 91.9 - 32.2 + 38.1 - 58.1 +157.0 - 21.9 - 50.8 + 57.0 - 41.2 - 68.9 + 2.7 +322.5 Tot.l. ......................................................... 1,978 $4,161,994 1,600 55,524,305 - 24.7 Am.rillo... ............................................................. Austin ............... .,............................ . .................... Beaumont . . . . .. . . .. . .. . .. . . .. . . . . . . . . . . .. . . .. .. . . .. .. . . . . .. .. .. . . . . .. . . . Corpus Christi. . . . . . . ... . .... . .. . .... . .... . . ..... . .... .. . . . . .. . . . . .. . ... . DaUas... ...... . ... .. .................. . ................................ EI Paso ........ . . . ..... ...... .............. .... .. .... . .... · .. ·······.... Fort Worth... ... .... .. . . ............................. .. . .... ........ . .. . G.lveston. . .. . . .. .. . . .. . . .. .. .. . . . . . . .. . . .... . . . . ... . . . .. . . . . .. ... . . . .. . Houston...... . . . . .. . . . . .. . .... . . . .... . .. .. . . .. . . . . ... .. .... .. . .. . .. .... . Port Arthur. . . . .. .. . . . .. . . .. . .. .. . . . . .. . . . . .. . .. . . . . . .. . . .. . . .. .. . . . . . . . San Antonio. . . . .. . . . . . . . . . . .. .. .. . . . . .. .. . . . . .. . . . . . . .. . . . .. .. . . . . . .. .. . Shreveport. . . . . .. . . .. . . .. . . .. .. .. . . . . . . . . . .. . .. . . .. . . . .. .. . . .. .. . . .. .. . . W.co... . .. . . . ... .. ..... . .. . ..... ..... . .................... ... . .. ... .... Wiehit. F.Us..... . ............................. . ......... . .............. J.nu.ry 31, 1938 North and we.t-centrsl Texas ............................ . East-centrsl Texas ...................................... .. Texas Gulf ooasl ........................................ . West Texas- New Mexico ................................ . North Louisi.na ................... . ..................... . NOTE: Prioes Quoted .pply to oil 40 gravily and above. SOURCE: The Oil Weekly, Houston. Texas. Petroleum OIL PRODUCTION (Barrels) duced. In consequence, production declined considerably in the first two weeks in February. Daily average output during the week ended February 12 amounted to 1,416,000 barrels, which was 7.5 per cent below the January average and 5.2 per cent less than the average in February, 1937. January drilling activity was seasonally slower than in December, and slightly below that of a year ago. Prices of crude oil have continued firm, and in recent weeks the gasoline market has been generally steady following substantial declines in the last quarter of 1937. Decombor, 1937 No. 17 108 93 77 320 43 120 107 254 87 204 72 23 11 1,536 V.luation $ 57,307 148,205 449,683 735,327 787,221 154,973 308,190 471,088 1,564,280 37,908 375,255 106,752 20,227 14,045 -$5,320,551 December 1937 $ 19,007 2,185 16,822 209,451 43,480 165,971 Porcontage ohango v.luation over month - 10.2 +202.1 - 82.0 - 71.8 + 1.7 - 67.7 + 80.9 - 74 .2 - 25.3 +117.2 - 34.9 + 3.0 + 98 .3 +169.2 - 21.8 -
@FedFRASER