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M nt ly Busines's Review
OF

THE

FEDERAL

Volume 241 No.1
,
DISTRICT SUMMARY

BUSINESS

Consumer buying at department stores in principal cities
of the Eleventh District, which was stjlnulat.~d by widespread
price-reduction sales, was in large volume ' dm'ing January.
Sales at reporting firms declined by an amount that was
considerably smaller than is usual from December to January, and were only fractionally lower than in January, 1938.
The fact that sales this January were nearly as large as a
year ago is significant, as business in January, 1938, after
allowance for average seasonal changes, was at the highest
leVel since 1929. Preliminary reports from a smaller number of firms indicate that business during the first half of
February was moderately lower than in the corresponding
period of 1938.
Inventories at reporting firms were reduced further by
2.9 per cent during January, but the aggregate value of
stocks on January 31 was 1 per cent higher than on that
date last year, due to the larger inventories held by firms
located in Dallas. The ratio of collections in January to
aCCOunts outstanding at the beginning of the month was seasonally smaller than a month earlier, but about equal to
that of a year ago.
The distribution of merchandise through wholesale chan~e in this district, as measured by sales of reporting firms
In eight lines of trade, declined about 3 per cent from
~ecember to January, reflecting in part a seasonal decrease
~n the demand for drugs, tobacco and electrical goods. BuyIng of dry goods, hardware, and machinery and equipment
~owed a substantial expansion over the preceding month.
~e combined sales of reporting firms were fractionally
Igher than in January last year, which is the first year-toyear increase recorded in more than a year. The increase
rver the corresponding month last year resulted from the
arger sales of dry goods, hardware and tobacco products,
b'hi?h more than counterbalanced the smaller volume of
USlDess in other lines. Although stocks of merchandise at
reporting firms were increased considerably during Ja~lU­
ary, the total at the close of the month was smaller than/on
~hat date in 1938. It should be recalled, however, that stocks
In SOme lines were still at a comparatively high level at the
nd . of January last year. Collections declined seasonally
urmg January but were about 2 per cent larger than a year
earlier.
The number of commercial failures in the Eleventh District during January was more than double that in Decem.

OF

DALLAS

This C
Opy is r eleased for pub,.".
h
licntion in afternoon papers-lUarC

Dallas, Texas, March 1, 1939

Business and industry in the Eleventh District showed
some improvement during January, after allowance is made
~or customary seasonal changes. Sales at department stores
m principal cities declined less than seasonally from December to January and were nearly as large as a year ago. Sales
?t independent retail firms were about the same as those
m January last year. The value of construction contracts
?warded, although one-fourth smaller than the large volume
In the preceding month, showed a gain of 73 per cent over
January last year. Petroleum production was moderately
lower than a year ago. Agricultural and livestock conditions
sh?wed a marked improvement following the heavy, general
rams which bxoke the prolonged drouth.

h

BANK

RESERVE

2

ber, and the average indebtedness of defaulting firms was
three and one-half times greater. According to Dun and
Bradstreet there were 35 insolvencies during the month with
liabilities totaling $754.,000. The latter figure is the largest
reported for any month in more than three years.
AGRICULTURE

Conditions in the agricultural and livestock industries of
the Eleventh District showed much improvement during
January, as a result of the widespread rains which relieved
the severe drouth that had prevailed in most areas during
the latter part of 1938. A good supply of surface moisture
is now available in virtually all areas, but in some sections
subsoil moisture is still inadequate. Additional rainfall in
these areas would be very beneficial. Since the rains farmers
have been able to make rapid progress with the preparation
of soil for spring planting.
The improvement in moisture conditions was very helpful
to small grain crops. In New Mexico and the northern section of the Texas Panhandle the condition of wheat is reported to be the best in several years. The crop is developing a good root system, and prospects are favorable for good
yields. In north and west-central Texas wheat has made
favorable progress since the rains, but the crop has not yet
fully recovered from the prolonged period of dry weather.
In portions of these sections the outlook is still uncertain.
Winter vegetable crops in south Texas, which had been
adversely affected earlier in the season by the lack of
moisture, showed very good progress in January. The condition of most crops on February 1 compared favorably with
that a year earlier and the ten-year average for that date.
Weather conditions have been favorable for the strawberry
crop, and shipments in carload lots are expected to begin
early in March. Soil conditions are promising for early
planting of spring vegetable crops. The indicated production
of oranges in Texas was increased 200,000 boxes on February 1 to a total of 2,4.00,000 l;>oxes. The estimated production of grapefruit remained unchanged. Carlot shipments
of fruits and vegetables from south Texas thus far this season have averaged 12 per cent greater than in the corresponding period last season.
Reflecting the beLteqnent in moisture conditions, livestock
ranges in virtually all sections of the Eleventh District
showed much improvement in January, and they are now in
about average condition;"'fhe January rains stimulated the
CASH
MI Ll.IONS
1

or

FARM

INCOME

ELEVENTH rEDERAL RESE RVE DISTRICT
DOt..L.AAS

MIL.L IONS

or

DOl.L ARS

1600

d

400

o

".

=
,."

I'.

1m

tta

I"

teo

ml

IIU.

IDS

11)4

lIn

IIlI

itS?

_.1.-...J 0
IIlI

11!t

This ublication was di itized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@daL rb.org)

1"0

MONTHLY BUSINESS REVIEW

2

growth of weeds and grasses, replenished the supply of stock
water, and provided most areas with ample surface moisture.
In some sections, however, there is still a deficiency in subsoil moisture. The Department of Agriculture reported that
prospects for spring ranges in this district are considered to
be better than average. The mild, open weather and the
betterment in range conditions have been favorable to livestock. Losses have been light, and animals were in about
average flesh on February 1. Small grains afforded comparatively little grazing prior to the rains with the result
that supplemental feeding was necessary in many areas. In
Texas the condition of ewes and the progress of early lambs
are only fair due to the lack of new feed in many areas. The
supply of early grass-fat cattle available for marketing is
expected to be smaller than a year ago.
The broad demand for cattle and calves, which had prevailed during the latter part of 1938, was well sustained
during January at the Fort Worth livestock market. This
demand combined with comparatively light receipts l'esulted
in stronger prices, with some sales bringing the highest price
of the current marketing season. During the last half of
January beef cattle were selling at prices that averaged
about 15 per cent higher thaB a year ago. In the first two
weeks of February the market for cattle declined slightly;
whereas, hog prices increased somewhat from the low level
prevailing in January. The market for lambs was uneven at
times, but prices, which averaged about 10 per cent higher
than a year earlier, showed little net change during the first
six weeks of the year.
Cash farm income in this district declined more than seasonally from November to December, and the total was 20
per cent lower than in December, 1937. The decrease resulted in considerable part from the sharp decline in receipts
from the sale of cotton.
The latest estimate by the Department of Agriculture on
cash farm income during 1938 in the five states attached to
the Eleventh District shows a less favorable comparison with
the preceding year than was indicated earlier. The difference
was occasioned by a substantial upward revision in the estimated income in 1937 rather than a reduction in the estiWHOLESALE AND RETAIL TRADE STATISTICS
r - - - Percentnge ohnnge in: _ _ _ _Rotio Jan. colleotions
Stocks'
to aocounts outstandNet Sales
v-,
ing Jan. 1
Jan., 1939 from
Jan., 1039 from .,----;-- - _.....
Dco.,
Jan.,
Dco.,
InstallJan.,
Retail trade:
1038
1038
1038
1088
Regular
ment
Department .tores:
Totalllth Dist . . ..... . - 1.0
-63. 6
+ 1.3
- 2.0
40.8
14 .7
Dallas ............... . -50.8
.1
+ 7.0
- 8.3
30.2
17 .0
Fort Worth .. . ... .... .. +1.1
-64.6
- 10 .2
37.7
- 6.6
0.5
Houaton ........... . . .
-52.1
- 4.0
-11.9
40.1
.8
San Antonio . . .. ..... .. - 6.7
-47.8
- .1
+16.0
46.1
12.4
Othor oities ... .. .. .. . . . .5
-56.9
- 3.0
48.7
- 1.0
17 .6
Indopendent atores:t
Arizona . .............. + 3.6
-21.6
Oklahoma ............. - 2.7
-4.2.8
New Mexioo........... + 1.6
-25 .4
Texas.... .............
0.0
--30.0
Wholesale trade:t
Maohinery, cqp't &< sup23.4
If~~~~~~~ ~~~o.t~~o.~~:: +~g +~U ':':'jii; +20:8 36.0
Groceries ............... - 2.4
- 1.6
- 2 .4
+ 4.8
94 .7
Drugs ................. - 1.6
-23.6
- 6.0
-.4
72.6
Hardware .... .... ...... +21.7
+ 0.3
- 2.8
+ 8.0
66.7
Eleotricaisupplies ....... - 4.3
-28 .3
-24.8
+20.1
Tobaoco aud produots. ... + 6.0
-27.1
85:i
Surgical equipment .... .. No ohg. No ohg.
+24.0
+ 6.0
61.0
'Stooks at olose of month. tOompiled by United States Department of Commerce.

+

INDEXES OF DEPARTMENT STORE SALES AND STOOKS
(1023·26 avernge~100)
With seaBonal adjustment
Without seasonal adjustment

Sales-Jan.
10aO
1938
Totn! Eleventh Dist .. 113 .0 113 .8
DaUas .. . ......... .. 108 .8 107 .7
Fort Worth . . . . ..... . 110 .0 108.8
Houston ............ . 101.0 101.0
BaD Antonio . .. . .... . 86.3
9~.3
r

Stooks-Jan."V
1030
1038
66.2
63.4
68.4
Oa.7
56.3
60.0
47.1
45.8
66 .6
67.4

Sales-Jon.
1080
1038
86 .6
86.6
93 .0
92.0
81.4
80.6
80.9
89.9
78 .5
84.0

Stooks-Ja;-'
1039
1088
66.7
65.2
60.6
66.4
48.4
61.6
40.6
89.0
62.1
52.8

mate for 1938. Income from the sale of farm crops during
1938 totaled $4.38,000,000, which represents a decline of 25
per cent from the revised estimate for 1937 ; about twothirds of this reduction is accounted for by the decline in
receipts from the marketings of cotton and cottonseed.
Receipts from the sale of livestock and livestock products,
which according to earlier estimates, had been maintained
at about the record volume of 1937, showe~ a decline of 13
per cent on the basis of the revised report. Notwithstanding
this decline, income from these sources contiBued at a high
level, being considerably greater than the 1928-1937 average.
Government benefit payments rose to $1l3,000,000 during
the past year, which was nearly double the amount received
by farmers in 1937. Despite the increase in Government
payments, however, total farm income, which aggregated
$878,000,000, was still 14 per cent less than the revised
estimate of $1,021,000,000 for 1937.
FINANCE
Reserve balances maintained by member banks with the
Federal Reserve Bank of Dallas rose considerably in January when reserve city banks shifted a substantial amount of
idle funds to the Reserve bank. The expansion in actual
reserves was greater than the increase in required reserves
resulting from the rise in deposits at member banks, and in
consequence excess reserves rose to the highest level since
March, 1937. Although excess reserves declined moderately
during the first half of February, they were still somewhat
CASH FARM INCOME IN TEXAS AND THE ELEVENTH DISTIUCT
(In thousands of dollars)
, . - - - Tetas---v--Eleventh Distriet'--,
Source
1038
1937
1038
1037
Cotton .............. . ... . .......... . Sl34,l18
$212,433
$214.660
S 206,126
Cottonseed ........... .......... .... .
21.283
32.092
32,842
16,055
A11_gralOst... .. ................. ... .
36,356
56,142
03,376
126,034
Corn .. . ...........•....... . •.....
4,302
6,026
7,726
8.514
Wheat ......... .. .•....•........ ..
18,837
38,044
56.861
83.702
All vegetablcst ......... . .... . .... , .. .
16,121
21,282
34,007
45,100
Irish pntatoes ..................... .
967
2,846
3,338
0.510
Truck crops .. .................... .
13,nO
17,480
27.637
84.275
Fruits and nuts .... . ...........•. ... .
11,174
12,280
10,061
28,748
Total nil crops.............
Livestook§........ .. . . .... .... . ..... .
Government pnymel1t<l. . . . . . . . . . . • . . . .

$230,057
180,638
68,814

$346.076
218,105
36,010

$437,856
326,823
113,246

S 581,962
376,743
62,114

Total farm income.... . .. .. . 5488.500
S606,100
S877.023
$1,020,800
"Eleventh Distriot figures represent combined totnl for the five states wholly or partially
attnohed to Eleventh District. tInoludes oorn, wheat, onts, bnrley, rioe, grain sorghums nnd
popoorn. tlncludes Irish and sweet potatoes and truok orops. §Inoludes receipts from sale of
livestock and livestock produots.
SOURCE: United States Department of Agrioulture.
CASH FARM INCOME FROM SALE OF PRINCIPAL FARM PRODUOTS AND
GOVERNMENT BENEFIT PAYMENTS
(In thousands of dellars)
,
Decembor, 1038 - - - v - -Totnl receipts----,
,,-- Reoeipts from: _____ Government December December
Crops
Li vestock' pnyments
1038
1937
Ariz,o!,n. . .. . . . . . . . . . . . . .
4,557
2,)82
150
6,808
0,688
LOlIIsmna..... . . . . . . • . . . .
7,246
3,813
1,378
12,432
12,582
New Mexico...... .......
1,804
3,177
62
4,543
0,065
Oklahoma . . . . . . . . . . •. . . .
4,621
6,466
766
10,863
10,031
Texas...... .............
0,401
17,630
4,040
31,100
46,233
Total. .. . . . . . . . . . .
27,140
32,277
6,400
65,836
"Inoludes receipta [rom the sale of livestook and livestook produot<l.
SOURCE: United States Department of Agrioulture.

82,484

FORT WORTH LIVESTOCK RECEIPTS
(Number)
January
January Ohango over December Changeover
1039
1038
year
1938
month
Cattle .................. .
48.488
63,650
- 6,062
60,814
- 2,320
Calves ................. .
28,363
26,710
+ 1,647
33,086
- 6,822
31,036
27,610
+ 3.410
23,401
7,644
~~~~ .....
46,220
34,587
+ 11,642
36,266
0,064

::::::::::::::::

OOMPARA'rJVE TOP LIVESTOCK PRICES
(Dollars per hundrodweight)
January
January
1030
1038
Beor steor•.... . ............ ............... .•.....
$10.40
$7.85
Stooker steers ............... . ........... . ....... .
8.76
7.26
Heifers and yearlings .. .......................... .
10 .26
8.00
Butcher oows .............. . ................... ..
6.76
5.36
Calves . ..... . ............................. , ... ..
9.00
7.50
8.60
7.60
8.25
7.50

~~b~::::::::: :: :: ::::::::::::: ::: :::::::::::::

+
+

Deoember
1638
$0.60
8.40
0.50
6.26
8.25
7.60
7.76

MONTHLY BUSINESS REVIEW

higher than in December. Total earning assels of the Federal
Reserve Bank of Dallas showed little change between J anu·
ary 15 and February 15. During the period Federal Reserve
notes of this bank in actual circulation evidenced a further
seasonal decline of $1,500,000, and the total at mid·February
Was $4,,100,000 smaller than on that date last year.
. The demand for credit at weekly reporting member hanks
In leading cities of the Eleventh District has shown a strong
resistance to the usual seasonal trend. Although loans ordi·
narily decline considerably after the first of the year, they
have shown a very moderate recession this year. In fact, total
loans on February 15 were only $2,500,000 less than at the
close of 1938 and were $9,600,000 larger than a year earlier.
The major portion of the decline occurred in advances for
commercial, industrial and agricultural purposes, but the
total of these loans on February 15 was $11,200,000 greater
than a year earlier. In contrast with the moderate decline in
loans between December 28 and February 15, investment
holdings of reporting banks showed the sharpest decline for
any similar period in recent years. Although about
$3,700,000 of this decline represented a revision in the
~ethod of reporting investments, the remainder of the reduc·
tIon resulted principally from the liquidation of direct obli·
gations of the United States Government. Holdings of these
~curities by reporting banks are now at the lowest level
Since March, 1936. Total investments were reduced $26,·
4,00,000 during the six·week period, which counterbalances
nearly 60 per cent of the expansion in investments that
Occurred during the last eight months of 1938. Despite this
sharp decline, however, investment holdings on February
15 were still $8,600,000 greater than a year ago. Total loans
Fd investments on February 15 were about $29,000,000
ess than at the beginning of the year, but they were $18,.
200,000 greater than a year ago.
Reflecting chiefly increases in adjusted demand deposits
:indo in interbank balances, total deposits rose $17,000,000
Uflng the six weeks, and on February 15 they were $67,.
600,000 greater than a year earlier. The funds made avail·
able to reporting hanks through the expansion in deposits
and the decline in loans and investments were transferred
to their balances with other domestic commercial banks.
These balances were increased $44,300,000 during the six·
week period to a level $50,000,000 greater than a year ago.
INDUSTRY

The value of construction contracts awarded in the

Ehleve~th District during January was about one·fourth lower
t an In December, but showed a gain of 73 per cent over
January last year and was larger than in the corresponding
m01!th of any year since 1931. The decline from the pre·
CedIng month resulted from the smaller vo.!ume of awards
f?r non·residential building and for public utility construe·
tIon. In these classifications the December awards were in
unusually large volume, reflecting the letting of contracts
~.n numerous projects involving Public Works Administra·
don. loans and grants. Residential building, which had
Jechned moderately in December, increased 13 per cent in
anuary and was 112 per cent larger than in the initial
month of 1938. Contracts awarded for public works projects
Were at a much higher rate than in either the preceding
month or the corresponding month a year ago.
fh~ ~aluation of building permits issued at fifteen princi.
&a CItIes in this district, which had risen sharply from
t ~vimber to December, increased further in January. The
o a exceeded the heavy December volume by 9 per cent
:nd w~s 80 per cent greater than in January, 1938. The
slon was general over the district as is indicated by
e act that eleven cities registered increases over the pre.

tl?r

8

ceding month and fourteen cities reported gains over January
last year.
Daily average production of crude petroleum during
January in both the Eleventh District and the United States
OONDITION OF THE FEDERAL RESI1RVE BANK
(In thousands of dollars)

Totnl onsb reserves. ............... ..... ..........
Disoounts for momber bnoks.......................
Other bills disoounted. . .. . . . . . . . . . . . . . . . .. . . . . . . .
Industrinl advances.... .. .. . . .. .. . . . . .. .. . . .. .. . ..
Bills bought in the open market... .. .. .. .... .... .. .
United States Government soourities........... . .•..
'I'otnl earning assets. . . .. . . . . . . .. . . . . . . .. . . . ..... .
Member bank roserve deposits........... ..........
Federal Resorve notes ill actunl oiroulation. . . . . . . . . .
Oommitmonts to make industrial advances. . . . . . . . . .

Feb. 15,
1080
$204,187
176

Feb. 15,
1938
$101,745
242
2
080
16
09,768
l00.958
189,555
81,324
260

021
16
106,419
107,232
178,503
77,208
44

Jan. 15,
1930
$2l0,082
26

... iii
16
106,S14
107,627
184,670
78,741
46

CONDITfON STATISTIOS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
Fob. 15,
Feb. 16,
Jan. 11,
1039
103S
1030
Total loans and investments ........ ......... ..... . 1506,428
$488,104
$522,002
'l'otallonns ....... . ............... . .... . ........ .
248,033
284,334
242,485
Oommeroial, industrial and agrioulturalloacs ..... .
160,243
140,02S
150,070
Opon mnrket papor ............................ .
838
2,320
067
Loans to brokers and deniers in seollritics .... . .... .
2,948
2,436
2,940
Othor lonns for purobnslDg or carrying securities ... .
14,462
14,314
13,230
Rcal estate loans ........ ...... ................ .
10,373
20,429
20,003
Lonns to banks .. .. .. . ......................... .
224
249
208
All othor loans . .... .... .... .. . . .... ... ........ .
46,865
45,549
46,040
United States Governmont direct obligations ........ .
161, 185
173,411
170,806
Obligatiocs fully guamnteed by United States Govt ..
45,080
20,235
43,395
Other securitic.......... .. ....... ........ ........ .
66,221
61,214
56,406
Reserves with Federal RC3crvo Bank ........ . ..... .
107,088
110,846
115,258
Bnlanoes with domestio ban~.B .... ................. .
240,500
190.626
218,641
430,472
Demand deposits- adiusted" .... ..... . ...•... .. ...
402,230
426,068
Timo deposIts... . . .. .. . .. .. ..: .. ..... .. .. ..... ..
184,400
128,961
133,466
Umtod States Government deposIts . . ... ........... .
33,804
20,704
35,892
Interbank deposits .. ....................... ...... .
21~~~~
10~~!~
20~~~~
Borrowings from Federallteserve Balik .......... . . .
"Inoludes all demand deposits other ~hnn interbank and Unitod Statos Government, les.
onsb items reported ns on hand or in prooess of collection.
GROSS DEMAND AND TIME DEPOSITS OF MEhIDER BANKS
(Averago of dnily figuros- in thouSllnds of dollnrs)
Oombined total
Reserve oity bnnks
Oountry baw
Gross
demand
Janunry, 1087 ........ .. ' 1.094 ,826
January, 1038 .......... 1,116,242
Septomber, 1088 .. ... .... . 1,1J2,400
Ootober, 1938 .......... 1,157,091
Novomber, 1038. . ..... . 1,188,460
Deoembor, 1088 ........ . . 1,180,670
Jnnuary, 1030 .......... 1,102,054

- - v Gross
Time
S100,824
215,115
222,003
224,045
222,920
223,336
223,681

demnnd
$621,186
008,648
031,147
055,005
067,021
665,072
672,652

- - vGross
Time
1100,726
110,174
122,954
124,155
122,980
123,655
123,805

dcmnnd
$473.640
507,604
481,349
502.326
521,448
524,508
510,402

Time
S90,OOS
05.041
09,739
09,890
90,040
00,681
00,876

DEBITS TO INDIVIDUAL AOOOUNTS
(Ill thousands of dollars)

Abilone.................
Austin...... .. .... .... ..
Beaumont.... ......... ..
Oorsicana...............
Dallns.. ................
EI1'Il..o.. .... .. .........
Fort Worth ..............
Galveston...............
Houston................
Port Arthur.............
Roswell.................
San Antenio ........ .....
Shreveport. . . . .. . .. . . • ..
Texarkana·..............
Tueson..................
Tylor.. ...... .... .. .....
Wnoo. ... ............ ...
Wiohita Falls............

January
1030
$ 8,571
31,487
23,106
3,477
246,274
30,220
83,877
28,403
230,312
0,266
4,164
67,880
45,205
7,160
11,005
12,143
14,177
14,140

January Potg.ohango Dooember Potg.ohango
1038
ovor year
1938
over month
$ 8,300
+ 2.2
0,848
-13.0
20,006
+ 8.6
35,348
-10 .0
25,674
- 10 .0
25,493
- 0.4
3,560
- 2.6
3,871
-10.2
256,004
- 3 .8
287,065
-14.2
28,160
+ 7.3
32,566
- 7.2
05,753
- 12.4
07,241
-13.7
28,284
+.4
30,746
- 7.6
219,168
5.1
254,688
- 0.6
0,682
- 4.3
0,870
- 6.1
3,466
+20.5
5,681
-20.7
68,005
-.3
74,706
- 0.1
40,421
- 8.5
54,184
-16.6
7,822
- 8.5
8,771
-18.4
11,078
-.6
12,005
- 6.2
12,040
- 6.2
18,303
- 8.7
14,310
.0
16,099
-16.6
17,705
-20.5
17,557
-19.4

+

Total. .......... $871,776
$880,576
- 2.0
1000,632
-12.0
·Inoludes the figures of two banks in Texnrkana, Arkansns, located in the Eighth Distriot.

Beaumont . .... ......... .
DaUns ..... ............ .
EI PIISO . . . . . . . . . . . . . . . ..
Fort Worth ............ ..
Galveston ..... ......... .
Houston ................ .
Port Arthur ............ .
Snn Antonio ............ .
Shrevoport . ............ .
Waoo ................. ..
Wiohita Fnlls ..... •... ...
All otbor .............. ..
Total ......... ..

SAVINGS DEPOSITS
January 31, 10ag
Percentage ohango in
,
, savings deposits from
Numbor of Number of Amount of ,------~--~
reporting
savings
savinp
Jan. 31,
Deo.31,
banks
depositors
deposits
1938
1988
3
0,848 $ 3,800.760 + 4.1
- 1.0
8
80,1ll
26,842,148 + 3.3
- 1.1
2
16,587
8,141,034 - . 8
+.S
3
38,879
13,604,801 + 5.2
-.1
4
18,401
Il,OS4,178 + 0.3
+.5
10
78,923
20,440,216 + 3.4
-.6
2
0,288
2,863,255 +18.1
+ 1.8
5
24,291
18,804,628 +10 .2
-.1
8
25,001
1l.450,588 + 3.2
.02
3
8,338
4,681,864 - 3.4
+ 5.2
3
7,430
3,828,024 +12.4
-.0
70
00,420
29,428,002 + 2.4
-.7
116

878,507

1166,150,408

+ 4.2

-.2

MONTHLY BUSINESS REVIEW
was fractionally smaller than in December, and continued
at a rate about 4 per cent lower than a year ago. The utilization of crude oil was in about the same volume as production, and in consequence stocks showed little change during
the month. Inventories in the United States on February 4
were only slightly above the 17-year low recorded on December 10, 1938, and were 11 per cent less than on the corresponding date a year earlier. Refinery operations, which had
declined in December, reflected an increase of 3 per cent in
January and were about 1 per cent higher than a year ago.
Despite this expansion, however, gasoline stocks increased
at a more moderate rate than in January last year, reflecting a continuance of the strong consumptive demand for
motor fuel that had prevailed during the latter part of 1938.
At the close of January inventories of gasoline were about
9 per cent less than a year earlier, but 14 per cent higher
than on January 31, 1937. Consumption of gas and fuel oil
continued in heavy volume during January, with the result
that inventories were reduced further to a level substantially
below the all-time peak reached at mid-November. The total
on February 4, however, was still 16 per cent greater than
a year earlier. Well completions in the Eleventh District
during the initial month of 1939 were about one-fourth
fewer than a year ago; whereas, the decrease for the United
States was only 14 per cent. The smaller decline for the
country as a whole was due chiefly to the sharp expansion
in drilling activity in Illinois, which partially offset the
fewer completions in some of the other principal oil producing states.
Domestic consumption of cotton increased by a smaller
amount than is usual from December to January but the
rate of consumption in the latter month was maintained at
a relatively high level, being 37 per cent greater than in
January, 1938, and 7 per cent higher than the 1928-1937
average for that month. The Bureau of Census reported that
591,991 bales of cotton were consumed in January, as compared with 565,307 bales in December, and 433,258 bales
in January last year. Total consumption during the first half
of the current season was 10 per cent greater than in the
corresponding period last season. Stocks of raw colton at
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
January
January
Eleventh District-total .. .... ..... .. ............. .
Residentilli ................ ... ......... .... ... .
All other ..... ..... ............ ..... ... . ...... .
United States·~total ....... .. ................... .
Residential. .... ... ....... . .. .... . ............ .
All other ........ . ............................ .
·S7 states east oC the Rocky Mountains.
SOURCE: F. W. Dodge Corporation.

1030
18,221
6,227
11,904
251,073
80,163
171,51 0

BUILDING PERMITS

,.
Abilene ............... ..... ....... ..
Amarillo ............. ...... ........ .
Austin ........ ............. .. ..... ..
Beaumont .... . . .. .......... ...... . . .
Corpus Christi ..... .... . .. .. ....... . .
Dallna· ..... . ..................... ..
EIPnao .... : ....................... .
Fort Worth ........................ ..
Galveston ...... ...... .............. .
Houston ........................... ..
Port Arthur ........................ .
San Antonio .... ............... .. . .. .
Shreveport .... . .................... .
Waoo .............................. .
Wiohita Falls .................. . .... .

January, 1080
Number
33
112
207
155
115
600
84
181
134
433
103
202
124
49
25

Total. . .. . . .. .. . .. . . . .. .. . 2,557
·Inoludes Highland Park and University Park.

1038
10,546
2,044
7,602
105,472
36,207
lli9,205

171,940
842,041
01,807
078,007
1,475,014
240,600
332,004
134,772
2,040,375
138,325
028,104
823,427
802,107
58,305

+223.7
+ 88.2
+ 13.2
+372.0
+ 52.8
+381. 0
- 53.0
+ 10.0
+ 74.7
+ 68.0
+157.2
+ 104.2
+653.2
+ 54.4

$7,830,217

+ 80.0

CRUDE OIL PRODUQ1'ION
(Barrels)
,January, 1030
Inorcnsc or dccrease in daily
, . - - - - - - - _ _ . , avorngo produotion from
Total
Dnily avg. , . . - - - - -____
produotion
produotion
Jan., 1038
Dec., 1038
North TexllS ................ .
144,432
+ 6,341
+ 3,763
4,477,400
We«t 1'ox"' ................. .
7,385,500
238,242
+ 14,380
+
40
Enst TexllS .......... .. .... . . 14,048,700
472,580
-85,485
- 0,308
7,355,050
237,280
South 'J'OXIIS . . . . . . . . . . . . . . . , •
+ 7,223
+
00
Toxna Constal. .............. .
6,665,050
215,002
+21,594
- 1,442
Total Texas ...... . ... .
Now Mexico .. . ... . .. . ...... .
North Louisiana ............ . .

December
1038
23,816
5,527
18,280
380,4 80
01,539
207,000

Percentage change
valuation Crom

Valuatioa v Jan., 1938
S 80,130
+196.0

,
consuming establishments declined further during January,
and at the close of the month they were 8 per cent lower
than a year earlier.
Exports of American cotton continued at a very low level.
Shipments during January aggregated only 289,514 bales,
which is less than one-half the average for that month, and
compares with 361,026 bales in December and 647,4.81
bales in January last year. During the first six months of
the current season shipments of cotton to all principal destinations, except Japan, were substantially lower than in the
first half of the 1937-1938 season. Although exports to
Japan were about double the small volume in the same
period of the preceding season, they were materially lower
than in any other similar period in about 15 years. Total
exports from the United States thus far this season have
averaged 4,3 per cent below those in the same period of the
preceding season, and the rate of shipments is at the lowest
level in about sixty years.
Cotton from the 1938 crop continues to be placed in
Government loan stocks in substantial amounts. The Commodity Credit Corporation reported that through February
16 loans had been made on 4,274,,000 bales of the 1938
crop, with the result that aggregate Government holdings of
cotton now exceed 11,200,000 bales, or nearly one year's
supply.
According to the data compiled by the Rayon OrgGJnon,
the world's production of rayon rose to a record level of
1,900,000,000 pounds in 1938. This volume is estimated to
be roughly equivalent to about 4,,000,000 bales of cotton.
Rayon production in the United States in 1938 showed a
decline of ahout 20 per cent from that in 1937, but consumption apparently reached a newall-time record.

Dec., 1088
+128.8
- 83.8
+ 10.8
26.8
+510.8

+
+ 11.4
+ 78 .6
- 43.3

-I~U

21.9
53.0
20.7
254.6
- 82.6

+

8.0

40,532,000
3,050,050
2,217,000

1,307,504
08,608
71,545

-30,038
- 8,4 [2
- 7,035

- 6,878
540
+
824

Totnl Distriot .... .. . . " 45,810,150
1,477,747
SOURCE: The Oil W""kly, Houston, Texas.

-52,085

-

---

CONSUMP1'roN, STOOKS AND EXPOU'l'B OF COTTON
(Bal .., )
January
January
Deoomber August 1 to
1039
1038
1038
This 80380n
Consumption at:
10,378
1'exna mills ........ .. ..
8,737
8,001
61,755
501,991
United Slates mills .....
433,258
565,807
8,301,808
U.S. stocks_ud oC month:
In consuming cstub'mta . 1,620,503
1,758,090
1,607,089
Public stg. & compresscs. 14,782,233 11,815,805 15,381,332
Exsorts Crom U. S. to:
41,405
nited Kingdom .......
200,884
40,530
285,458

0,003

January 31
Lnst season
57,841
3,077,672

Italy ..................
Germany ..............
Other Europe ..........
Japan .................
All other oountries ......

Franoo ............ ... .

20,741
22,030
31,399
50,640
70,054
43,273

70,144
53,500
41,741
80,708
108,584
70,770

82,229
36,807
24,010
72,100
100,449
3li,902

293,834
173,150
200,135
480,260
528,351
225,097

1,105,120
614,813
33S,103
645,368
572,88li
228,505
342,303

Total exports . .. . ..

289,514

047,481

361,026

2,102,285

3,832,247

RECEIPTS, lllXPOnrrS, AND STOCKS 011 COTTON AT 1'HE PonTS OF
HOUSTON AND GALVESTON-CBales)
January
January
Dooembor August 1 to January 31
1039
lU38
This season Last scason
1938
Reoeipts
............ .
104,540
327,573
1,813,237
3,253,124
172,730
Exports .... ...... ...... . 237,303
1,400,004
1,009,05S
303,740
255,185
Stocks, ond oC month .... . 1,557,085
1,830,910
1,694,331

MONTHLY BUSINESS REVIEW
MARCH I , 1939

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by t he Board of Governors of the Federal Resel'vc System)

INDUSTRIAL PRODUCTION
fO(RCOO

140
I 30

120
110

.r

100
90

80

L\

~

I 20

/~

10

\

I

V'

70

100

/

90
60

-V

70

60

60
1
934

1935

1
93B

1931

1
938

1939

Indcx of physiclll volume of production, adjust ed
for senson a l va riation, 1923-19 25 avcrage
100.
By months, J a num'y, 1934, to January, 1939.

=

FACTORY EMPLOYMENT

'' '
120>IT

120
"""'"

110
100
90

80

0t

L

V

110

/V\

100

90

IV

90

10

10

60
1935

1938

1937

1938

1939

Index of number employed, adjusted for seasonal
vaJ'iation, 1928-1926 avcraBP
100. By months,
J a nuary, 1984, to January, 1939.

=

......

14
12

In January volume of industrial production, as measured by the Board's seasonally adjusted index, was at 101 per cent of the 1923-1925 average as compared with 104 in December. At steel mills, where activity usually increases considerably at this season, output in
January and lhe first lhree weeks of February was at about the same rate as in December.
Automobile production declined seasonally in the first two months of the year as retail sales
showed a.b out the usual decrease and dealers' stocks reached adequate levels. Output of
cement declined in January, and there was also some reduction in output of lumber and plate
glass. In the non-durable goods industries, where production had been at a high level in
December, activity increased less th an seasonally. Increases at cotton, silk, and tobacco factories were smaller than usual and at woolen mills there was a decline. Shoe production and
sugar refining continued in substantiaL volume, and activity at meat· packing establishments
showed little change, following a decline in December. Mineral production increased some·
what in January, reflecting an increase in output of crude petroleum.
Value of construction contracts awarded declined in January, according to F. W. Dodge
Corporation figures, owing principally to a .reduction in awards for publicly-financed projects,
which had been in large volume in December. Contracts for privately-financed residential
building continued at the recent advanced level, while ·awards for private non·residential
building remained in small volume.
EMPLOYMENT

GO
1834

1
6

PRODUCTION

1

\

I IV

lnd ustrial production increased less than seasonally in January and the first three weeks
of February, following a rapid advance in the latter half of 1938. Wholesale commodity prices
continued to show little ohange.

MEMBER BANK RESERVES AND RELATED ITEMS

IIUJOtdrl~

1f1'00IJ..uIS

r---t--+---/---f-~..q...---j

14

r---t--+~~~~-f--+---j 1 2

1 r - --t---:;>1-=---/---I---+---j 10
0

Factory employment and payrolls showed the usual decline between tlle middle of December and tlle middle of January. In most individual industries, as well as in the total, changes
in the number of employees were of approximately seasonal proportions. In trade, employment declined somewhat more than is usual after Christmas.
DISTRIBUTION
Sales at department and variet), stores and by mail-order houses showed the usual sharp
seasonaL declin e from December to Janua1'Y. In the first· two weeks of February department
store sales continued at the January level.
Volume of frei ght-car loadings in January and the first half of February was at about
the same rate as in December.

~~~~==~==~~~~~2
o "-::~"";"A:-.',:,,-n:=...~>..h";;';;;';;;';;;ol..:!~'.::l_:--.J

0

1939

Wed'nCsday fi gures, January 3, 1984 , to
F ebrulll'Y 21, 19a9.

COMMODITY PRICES
Wholesale commodity prices generally continu ed to show littl e change in January and the
fITst three weeks of February. Grain prices declined somewhat, following a rise in December,
while prices of hogs increased seasonally. Changes in prices of industrial materials were small.
BANK CREDIT

MONEY RATES IN NEW YORK CITY

~r~~----+----+----~--~~--~ 2

Excess reserves of member banks, which reached a record hi gh level of $3,600,000,000 on
January 25, declined somewhat ill February. This decline resu.lted chiefly from a temporary
increase in Treasury balances witll th e Reserve banks representin g cash receipts from the sale
of the new United States Housing AUlhority and Reconstru ction Finance Corporation notes.
Purchases of these notes were also responsible for an increase in total loans and investments
of reporting member banks in 101 leading cities, following a deoline during January.
MONEY RATES

o
1
939

For weeks cnding J nnuary 6, 1984, to
February 18, 1989.

Average yields on United States Governmenl securities declin ed furuler during the first
111l'ee weeks of February to about the lowesl levels ever reached. New issues of 91-day Treasury bills after selling at par or at a slight premium in late December and early J anu8ry,
were again on a slight discount basis during February. Other open-markeL rates continued
unohanged.