Full text of Review (Federal Reserve Bank of Dallas) : March 1919

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•

Federal Reserve

Banl~

of Dallas

This summary of agrlcultural and commercial conditions In
the Eleventh Federal Reserve District Is Issued In the belief that
a concise review of trade will be of Interest to our member
banks, business men of the district and friends of the Federal
Reserve Bystem.
The Information given Is obtained by the Federal Reserve
Agent from various sources throughout the district, and In our
opinion the same Is reliable.
Those desiring the letter furnished them regularly wlll receive It without charge upon appllcatlon.

DALLAS, MARCH, 1919
'rhe undertone of caution and hesitancy in various
lines of business, pending more settled market conditions, price adjustments, and further progr·ess in
the transitory period is still conspicuous. There
were evidences in February of the return to normal
and pre-war conditions in the district, as reflected
?y the slight reduction in prices of food-stuffs durll1g the month. The decline in the market affected
princ.ipally dairy products, country produce and
certall1 grocery commodities. Some relief is thus
afforded from the abnormal cost of living to which
We had become more or less accustomed during the
wa:, and the reduction in prices is quite welcome.
It IS at least indicative that a start has been made
in ~eadjustments, and we look for further favorable
developments.
Excellent crop prospects may be considered an accur.ate barometer as to the futur'e and present indi~atlOns forecast very heavy yields of farm products.
rrade conditions, summarized, continue fair to
good, and our correspondents, with few exceptions,
are optimistic over the outlook This is especially
true in sections of the West and Southwest where
drouth conditions .up to a few months ago were
extremely bad. There has been little change in the
c.ot ton. situation during the month, as slow collechons 111 the agricultural belt testify, and trade in
those sections plainly shows this ~~ation.
In the to'W11S adjacent to the oil fields-Ranger,
Burkburnett and Wichita Falls-conditions are abnormal and business activiti'es are unprecedented.
The prediction of unusually heavy yields in grain
and other foqd crops is amply
AGRICULTURE justified by the advanced reports. It will be gratifying if
.
thl~ condition materializes and the pr'e sent campaign for a rediJction of one-third in the cotton
acreage is a success.
. Meetings of agricultural and bankers' associations, of farmers unions and commercial organiza-

tions have recently been held for the purpose of
effectually securing a reduction in the area planted
in cotton the present seas.on. The proposed plan
is to secure pledges from cotton planters, agreeing
to reduce the acreage at least one-third under that
planted in 1918. Increased grain and food pi-<;>duction is especially urged, and this of course will automatically decrease the cotton acreage. It is very
difficult to Qrophesy the result of the present campaign. February 22 was designated as "Pledge
Day" when farmers and planters gathered in their
respective community centers and agreed to support the movement.
The conditions now obtaining on account of the
slow marketing of cotton and the fact that another
crop will soon be upon us, make it imperative that
concerted action be taken, else a very dangerous
situation obtain when ' the new crop is ready for
market. As commented upon in a preceding paragraph, prospects for crops in 1919 could hardly be
improved upon; there is an excellent season in the
ground and good weather alone is needed for farm
work The planting season is at least thirty days
late, especially in South and East Texas on
account of excessive moisture in those sections.
Very little farm Work has thus far been attempted.
The excellent crop prospects and ' improved conditions in the live stock industry make
BANKING
necessary the use of large sums in
loans to stockmen and farmers in
the West, and the demand for money in those sections, especially, was never heavi·er. The facilities
of this b~nk are freely sought and the previous
heavy demand continues unabated. Our total bills
discounted and bought show a slight increase during
the month. It has neeessitated this institution rediscounting with ,other Federal Reserve banks. Interest rates have not changed within the past thirty
days, and are steady at 6 to 8 per, cent . .' Deposits
have increased slightly during the past month~ Fed-

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eral reserve note circulation decreased $4,500,000 in
the same period. Reserve deposits of member banks
increased $500,000 111 the past thirty days.
At the risk of repetition it may be stated that on account of memher banks of this immediate section
carrying large loans against cotton they are finding
it extremely difficult to maintain required reserves,
and in addition care for their regular customers. r\
very serious condition exists with some of the
banks in the cotton district, and they are badly
extended on account of the unusual and abnormal
situation. As a consequence, of the quotas of Treasury certificates allotted this district in the several
issues recently only 25 to 50 per cent has been subscribed. It is also necessary, as in other districts
of course, for our banks to carry a large amount of
Liberty bonds for their customers. This demand
absorbs funds which would ordinarily be used in
commercial channels.
Clearings at the principal cities in January show
an increase of 5.2% over the same month of 1918.
We consider this an excellent showing, following
the holiday period and unsettled conditions since
the signing of the armistice. A comparison follows:

Austin ....... _....... ..............$
Beaumon t ........................
Dal1as ..............................
E1 Paso ............................
Fort Worth ....................
Galveston ........................
Houston ............................
Shreveport ......................

1918
25,136,587
5,8'03,764
97,213,510
17,196,483
71,336,212
27,949,634
76,728,607
12,804,331

1919

$ 21,231,642

6,500,000
119',925,880
22,629,859
65,625,074
27.252,666
75,095,229
13,370,1'81

Inc.
or
Dec.
*15.0
12.0

111 valuation, over January 1918.
The showing is
better than for December 1918, however, and not
altogether disappointing. Detailed figures follow:

No.
Austin .................................. 11
Beau mon t ....... _...................
Dalla s ................................ 55
Fort 'Wo rth ...................... 24
Galveston .......................... 189
Houston ............................ 168
Sa n Antonio ................... .233
Shreveport ........................ 38
E1 Paso .............................. 72

Total ........................$334,159,128
$351,630,531
Increase-$17,461,403-5.2%
* Deer'e ase

Improved weather conditions obtained during February and created renewed activity
BUILDING in the building industry. We d.o
not expect any general recovery in
operations until the Spring and Summer months.
The present outlook, however, is very ·e ncouraging.
The greatest activity is reported from the cities in
the oil fields. At Wichita Falls, particularly, contracts aggregating over $1,000,000 have recently been let. Locally, the construction of residences of the better class has been resumed and
some small contracts for improvements have been
made. Architects, and dealers in lumher aJ!td building
material, report an increased number of inquiries,
and predict that as Spring opens the buildii1g industry will again become very active. The labor situation, and inability to fill orders for materials are restricting op·erations.' A comparison of the permits
issued at the principal cities of the district in J anuary shows an increase in number, but a decrease

No .
4

,~

tV~luation.

46
59
548
140
211
72
75

Total... ..................... 790 $1 ,308,876 1,155
Increase in llu111ber-365
Decrease ill valuation-$61l,903-46.7%

$ ' 2,450
28,956
109,820
92.725
61,108
152,507
127,942
82.215
39,250

$696,~73

hxports from the Galveston district during D ecember, the last month for which figEXPORTS
ures are ava.ilable, were valued at
$40,910,428, a n i ncr ea 5 e 0 f
$25,859,684, or 171.8%, over November.
Better shipping facilities are now available and the
early resumption of ·exp'0rt trade is expected.
'l'he record of bu siness mortalities in the district in
January shows the same number as
FAILURES in January, 1918, but an increase
in the amount involved. The figures, as furnished by R. G. Dun & Company, are:

23.4

31.6
*8.0
*2.5
*0.8
3.9

1918
Valuation.
$ 26,355
78,757
381,941
55,550
11,285
378,555
302,210
17,883
56,340

No .
48

191?
1919
Liabilities.
No.
Liabilities.
48
$695,082
$455,538
Increase in liabilities-$239,544

Indications of labor troubl·es are much stronger than
a month ago. The unemployment
LABOR
situation is becoming serious in many
parts of the district. There does not
seem toO be any considerable disposition on the part
of employers to reduce wages at this time, but the
general tread is in that directi0n. This movement
will, of C0urse, be str0ngly resisted by the laborer,
and we may shortly witness some disturbanc·es
caused by strikes and lock-outs. One of the principal difficulties now being encountered is the apparent disinclination of men released from the army
to accept positions at the prevailing wages.
'fhe cattle industry throughout the district continues to improve. Abundant
LIVE STOCK rains and snows have fallen over
the range country within the past
1110nth. Losses during that period have been light;
grass is starting in good shape and prospects for
early feed are thefoefore excellent. A large number of ranchmen are feeding weak and thita cattle,
and total losses have so far been nominal.
Receipts at the markets are limited and the qual-

ity is very poor. Prices are hi gh and entirely satisfactory. It is anticipated that the number of cattle
coming to the markets for some months yet will be
quite limited. In about thirty days shipments from
South Texas will be received and while this will
relieve the scarcity to some extent large runs are
not 'expected. It has been necessary for the past
thirty or sixty days for packers to ship hogs and
furnish meats from the Northern markets to care
for needs in this district, and prices are therefore
materially advanced. They will probably remain
at a high level for sometime yet.
In the Arizona section there is a brisk dem and for
steers for Spring shipment, but few contracts have
b.een made, as dealers are awaiting definit'e indicabons as to prevailing prices and the condition of
cattle at shipping time. While we may not expect
the cattle industry to become normal at a very early
date, it is a fact that conditions have generally improved in the past few weeks.
Manufacturers of lumber report that since the first
of February the number of inquiries
LUMBER
has greatly increased and during
that time they have received more
requests for prices of materials of all classes than
for. ~a.ny months past. In addition to the incr-eased
actlVltles locally, there is a great demand for export material, and European prime, saps, deals and
s~wn lumber are readily salable in almost any quantIty. Exporters are still speculating, as the actual
orders placed with them by foreign buyers are light,
but as stocks on hand are very low they are buying
them up and expecting a large business.
Stocks in r'e tail yards throughout the district are
below normal, while stocks on hand at mills in th e
producing territory are only sixty per cent. of normal. .In addition to this the weather during the
past. SIxty to ninety days has been such that prodUction was greatly curtailed. Very little lumb-er
Was C-cumufated during tbe Winter, as the mills
e.ntered the season with large orders. This condition seems to be general, as excessive rains have
pWr~ven.ted. the mills from keeping supplied with logs.
lt~ lIldlcations for a rather limited lumber productIOn for the next few months, the outlook is for
good demand and higher prices, especially in view
of ~he fact that building operations have been neces~anly curtailed for the past two years. Prices have
een practically at a standstill since December last,
and .the mere fact that they have not appreciably
dechned is ample indication that the market is
strong.
Production in the copper mining district of Arizona
is not more than one-half normal, and
MINING
all development work has been closed
down.
No labor troubles have been experienced thus far.

T he activities in the oil fields of the district are reflected in many cities in the North, NorthOIL
west and Central Texas. The produ ction is increasing daily and confidence in
the permanency of the fields appears justified by
recent developments. Large and small wells are
being added to the already long list of producers.
a nd new wells are being rapidly sunk. Authorities
concede that the Texas fields compare favorably
with the largest in the country.
Post off ice r eceipts at the prinCipal cities of the
district in January show a dePOST OFFICE
creas'e of .3 per cent., as shown
RECEIPTS
by the figur es below:
1918
Austin ........................................................$ 22,641
Beaumont ........ .......................................... 13,944
Dallas ........................................................ 156,567
E I Paso .................................................... 36,102
Fort Worth .............................................. 71,116
Galveston .................................................. 16,809
Houston .................................................... 90.023
San Antonio ............................................ 93,959
Shreveport ................................................ 23,582
Wa co .......................................................... 46,029

1919
$ 22,184
16,214
174,551
35,461
74,263
20,076
93,145
83,664
24,300
24,935

Total...............................................$570,772
Decrease-$1,979-.3%

$568,793

Bu sin ess in wholesale and jobbing lines continues
to be affected by uncertain
WHOLESALE
prices and .disturbed market
AND RETAIL
conditions. There have been
TRADE
no developments of interest
during the month. The policy
of buying tor immediate necessities only is being
strictly followed, according to our reports.
In the mail order trade, and wholesale dry goods
and notions, orders are light. The demand for farm
implements and machine~y and articles necessary
for the planting season is very active, and dealers
report a satisfactory trade. The same is also true
in seeds and bulbs: Some improvement is noted in
wholesale drugs. The revival in building operatio_ has also created a good demand for paints and
ns
wall paper. While some commodities in the grocery line have shown a sharp reaction in prices,
other staples have advanced, and there seems to be
no indication of a general reduction. Wholesale
grocers advise that attempts are being made among
the trade to cancel and repudiate contracts' previously entered into, on account of a decline in
some commodities. These measures are heing vigorously opposed by the wholesaler.
Retail trade is onl~ fair. Unseasonable weather
during February has contribut·ed .to this condition,
and while ' the distribution is generally satisfactory,
it has been mainly stimulated by clearance sales
and the disposition of retail merchants to reduce
stocks of Winter merchandise. There is some advanced activity in goods for Spring, principally millinery. There is also reported a fairly active business in men's wearing apparel, with the return of
troops to civil life.

/

STATEMENT OF CONDITION OF THE

FEDERAL RESERVE BANK OF DALLAS
At the Close of Business February 28, 1919.
RESOURCES

g~l~ ~~i~~~2:f;~::~~~::i~::~~~;:~:::::::: : : : : : : : : : : : : :: : ~: : : = : : : : : : : : : : : : : :: : :: :: : : : : : : : : : : : : : : : : : : : : : : ::: : $ H~!:~~H~

Gold held with foreign agencies..........................................................................................................................................
Gold with Agent for retir~ment of F. R. Notes ..................: .. ........................ ........................................... .l..................

204,()10.61
19,764,805.00

Total ........................................... _.......... _.............................._......................................................................................... $35,325,915.36
Legal tender notes, silver. etc ....................................................._......................................................................................
1,979,976.00
Total .................................................................................................................................................................................

$37.305,~91.36

~1;e~f~b~~t~Jun~e~:~ ~:~.~_~~.~~~.::..::::..::....::..~:::::..~~::::::::~~~.:.....:....~::..:::..:::::::::::.:::::::::::::::~..:::::::..:::::::..:::::.:::.::::::::....::....:: 56,~~~,,~~g·.~~
Bills bought in open market ...................................................... _......................................................................................

1,758,000.00

Total Bills on Hand ............................... _.. _.......... _.. _.................................................................................................. $58,345,862.57
Investments-U. S. Bonds............................................................. ......................................................................................
3,967,250.00
U . S. Certificates of Indebtedness.......................................................................................................................................
3,900,000.00
Total earning assets ...................................................................................................................................................... $66,213,112.57
Federal Reserve Banks-Transfers Bought-(net) ............... ................................................. _................................... 2,754,982.53
Checks and drafts in process. of collection......................................................................................................................
7,766,534.71
·AII other resources ....................................................... _.................. ......................................................................................
3,121,872.75
Total Resources ............................................................................................................................................................ $117,486,093.92

LIABILITIES .
Capital paid in ...............................................:................................... ............................................................•......................... $ 3,199,800.00
592,204.25
Surplus ............................................................................................................................................. :....................................... .
Government deposits ............................................................................................................................................................
7,863,246.14Due to member banks' reserve account ......._..... _.................... _...................................................................................... 38,780,266.67
7,441,898.33
Deferred credits, account checks and drafts in process of collection ........................................... _............... ....
Federal Reserve Notes in circulation ............................................................................................................................. . 51,167,235.00
F. R. Bank Note Circulation ............................................................................................................................................. .
6,212,100.00
Due t9 oth er Federal Reserve Banks (net) ...................................................................................................................
747,438.53
1,481,905.00
All other Iiabilities............................. _........................................ _........................................................................................
Total Liabilities ....... _...... _.. _.._.. _.. _.... _ .. _.................. _...... .................................................................................... $117,486.093.92
OFFICERS
W. F. RAMSEY,
Federal Reserve Agent.

R.. L. VAN ZANDT,
Governor.

LYNN P. TALLEY,
Depu ty Gqvernor-Cashier.
PAUL G. TAYLOR,
CHARLES C. HALL,
R. R. GILBERT,
Ass't Federal Reserve Agent.
Assistant Cashier.
Assistant Cashier.
R. BUCKNER COLEMAN,
FRED HARRIS,
Assistant Cashier.
Assistant Cashier.