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MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

2

PRICES AND WAGES

Changes in prices and wages from the low points
may be sumarized as follows:
Prices

The Bureau of Labor Statistics index of wholesale prices increased
from January, 1922, to March, 1923, 15 per cent.
The hiring rate of wages for unskilled labor in Eastern industrial
centers increased from April, 1922, to April 15, 1923,
22 per cent. Average weekly earnings of workers
in New York state factories (fairly representative
of industrial earnings in the country as a whole),
increased from April, 1922, to March 15, 1923, 11
per cent.

Wages

serve bank credit, particularly in the industrial sections of the country, has also increased from the low
point of last summer, as follows: All Federal reserv~
banks earning assets have increased $138,000,000
since August 9, 1922, or 14 per cent. Loans to
member banks have increased $263,000,000 since
July 26, 1922, or 69 per cent. Included in earning
assets are the government securities and acceptances
held by the reserve banks, as well as the loans to
member banks. As the volume of securities and acceptances owned has decreased, the volume of loans
to member banks has risen to a somewhat larger
amount, and earning assets consequently have risen.
The lending power of the reserve banks remains
very large, as is apparent in the high reserve ratio,
the result mainly of the heavy inflow of gold.

THE VOLUME OF CREDIT

The high industrial activity has involved a great
increase in the volume of bank credit in use. COltlparisons are made below between those dates when
low points were reached and April 11, 1923.

I

I:

Member Banks Total loans and investments have
In Leading
increased
$1,974,000,000
since
Cities
March 1, 1922, or 14 per cent. Commercial loans have increased $783,000,000 since August 30, 1922, or 11 pel' cent. Demand and time deposits have increased $2,453,000,000 since September 2, 1921, or 19 per cent. Since
the first of the year the growth of total loans and
investments has been due entirely to the rapid increase in commercial loans; loans on stocks and
bonds and the investment holdings of those banks
have declined. This shift in the fornl of bank credit
is in response to the increasing demand for credit for
commercial and industrial purposes. The use of re-

RELATION OF CREDIT CAPACITY TO PRODUCTION
CAPACITY

The relation of this great supply of credit, still
held in reserve, to the productive capacity of the
country is referred to as follows in the current issue of the Federal Reserve Bulletin: "The present
lending capacity of the country's banking system,
in view of the great growth of the reserve at the
reserve banks, is now far in excess of the credit
needs of the country's productive capacity. In such
a situation it is the available supply of labor and
equipment and not the potential supply of credit
that in the end must fix the limit which may be attained by aggregate national production. As these
limits are approached credit policy must be increasingly influenced by careful consideration of the continued effectiveness of further additions to the total
volume of credit in contributing to increased productivity.

DISTRICT SUMMARY
:'111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111=

i=~
"

§

THE SITUATION AT A GLANCE
Eleventh Federal Resel've District

1=-

I~~l~:i~~:~~::,*~~~~Z~:~~t;~3;:'~;;)~~~;~$~~;~:;:::~:i:;::: :~ l~: Dii~~
'0'

Reserve Bank ratio at end of month..............................................
Building permit valuations at larger centers................................
Commercial failures (Number)........................................................
Commercial failUl'es (Liabilities) ....................................................
Oil production (,b arrels) ..................................................................
Lumber orders at pine mills (per cent of normal production)

45.5 %
11,661,391
91
2,474,504
11,212,490
87%

50.0%
7,067,294
91
2,104,596
10,363,280
84%

o.

Dec. 4.5 points
[nco
65.0%
None
Inc.
17.6%
Inc.
8.2 %
Inc. 3 points

E

1======-

1=====:

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MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
A further rise in the tide of business and industry occurred in this district in March, accompanied by a moderate increase in the use of bank
credit. Retail trade was surprisingly brisk. March
sales of the district's department stores exceeded the
February total by 35 per cent, notwithstanding the
handicap imposed upon seasonable merchandise by
abnormal weather conditions, which gave the month
of March the unusual record of being the coldest
month of the winter.
The month also witnessed an accelerated activity
in farming operations, construction work, and other
basic industries, including livestock, lumber, cement
and oil. As compared with February, there was a
65 per cent gain in the month's total of building
contracts awarded in the larger cities, bringing the
volume of construction work in the district close to
record-breaking proportions and threatening another
serious shortage in the supply of skilled and common labor.
No unusual changes occurred in the banking
situation, although March statistics reflected the beginning of the usual ebb in deposits and rise in the
volume of loans, principally in the rural communities where banks are gradualy increasing their advances to farmers for financing the 1923 crops. Our

3

loans to member banks increased approximately $3,000,000 during the month of March, and although
they continued to expand i,n April at a rate approximately double that of March, the demand is still well
within normal proportions, as most banks still appear
to be able to finance the bulk of their customers'
needs out of their own resources. The recent amendment to the Federal Reserve Act making ninemonths agricultural paper eligible for rediscount has
not thus far materially affected the volume of rediscount offerings in this district, although it has
already brought within the time limit of eligibility
all agricultural paper maturing during 1923.
March debits to individual accounts at thirteen
cities exceeded those of the shorter month of February by 10 per cent. Contrary to the normal tendency at this season, there was a slight upturn in
the district's business mortality rate, liabilities
shown in the month's failure r ecord exceeding those
of the month of February, which is usually the peak
month of the year.
The crop outlook continues to be the subject of
much favorable comment, and so far as early indications go the farmers are facing an even more successful season than they enjoyed last year, except in
the wheat belt, where another short crop is expected
as a result of weather damages.

CROP CONDITIONS

The severest weather of the past winter occurred
in this district in March. Early reports indicated
that the killing freezes which occurred during the
month inflicted heavy damage upon such crops as
fruit, early truck, and wheat. In addition to the
direct loss suffered by early vegetables, as a result
of the cold waves of March, there will be some economic loss to the district's vegetable growers due to
the fact that weather conditions made it impossible
for them to market their products in time to get
the advantage of early season prices.

damaged, on the average, about 50 per cent. Later
information, however, indicates that the loss was
over-estimated, and while some damage occune.'
where the fruit buds were swollen or the blooms
were open, it is too early to estimate the exact extent
of the loss.

The planting of cotton has been practically completed, and in many localities it is up to a good stand.
Some slight damage was suffered by the plant as
the result of freezing, but only a small amount of
replanting was necessary. No defimte information
The extent of damage to Southwestern fruit as to this year's acreage is available as yet, although
caused by late frosts and freezes has been variously ' reports agree that there has been a substantial inestimated from 25 per cent to 75 per cent. Peaches, crease.
the most important item in the district's commercial fruit crops, were at first reported to have been
The severe weather last month administered a

4

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

setback to the district's wheat crop, and reports from
the Texas Panhandle indicate another short crop in
that section this year.

"
,

')

COTTON MOVEMENTS THROUGH THE PORT OF
GALVESTON
Aug. 1s t to Mch. 31st
March
1928

Seeding of corn and oats is well advanced, and
some replanting, due to weather damage, has been
found necessary. Abundant rains occurring in Aprli
have given small grains an excellent start, however,
and the outlook for production is exceptionally favorable at this time. In fact crop conditions, particularly in West Texas, are more promising than they
have been at this season since the banner year of
1919.
In contrast with the situation a year
ago, there was a sharp decline in the
March movement of cotton through
the port of Galveston, both receipts and exports for
that month showing a decided falling off from the
record of the preceding month. Exports, however,
outstripped receipts by a margin of more than 100,000 bales, reducing stocks on hand to an unusually
low point.

This

Last

Season

Season

Gross Receipts........
76,591 176,392 2,265,230 2,105,570
Exports..................... 180,483 181,670 2,154,196 2,039,238
Stocks, March 31st ................. ................ 175,769 309,019

-111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1I11111111111111111111111111111~

SEASON'S RECEIPTS, EXPORTS, AND STOCKS AT
ALL UNITED STATES PORTS
Lns t
Spason

This

Receipts since Aug. 1, 1922 .. ..
Exports: Great Britain ......... .
France ..................... .
Continent .............. ..
Japan-China .......... ..
Mexico .................... ..
Total foreign ports
Stocks at all U. S. ports,
March 31st.. .......................... ..

It

Cotton
Movements.

March
1922

Season

5,276,241
1,207,747
522,599
1,615,077
481,042
13,749
3,840,214

4,794,608
1,100,437
533,004
1,746,180
784,923
2,100
4,166,644

646,603

1,030,844

"11 111111111111111111111111111 111111 111111111111111 111111 1111 111111111 11 11111111111111111111111111111111111111111111111111111111111I11I1I 111I111111 111111l111 11 111 1i:

'!J IIIIIIIIIIIIIII IIIIIIII IIIIIIIIIIIII IIIIIIII II II IIIIIIIIIIII11111111 11 1111111111 111111111111111111111111 1111 111111111111111111111 111111111111111111 111111111111111'#

;

~

~

§

GALVESTON STOCK STATEMENT

I~:; ~:~~;'B'itai~:: :

E For other foreign ports....................
§ For coastwise ports............................

M"{'i:~gg "l~~ii I

In compresses......................................

37,812 §
3,500 E
242,452

Total..............................................

,

18,344
4,500
144,225
175,769

309,019

_:=_='

_---=

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"
,

LIVESTOCK
Although the district's ranges suffered temporarily from the unusually low temperatures prevailing in March, grazing
conditions reacted well to the warmer weather and
abundant precipitation occurring in April, and the
passing of the winter found both livestock and
ranges in a satisfactory condition, the herds having
suffered but little from the severe blizzards that
occurred in the first month of spring. In Arizona
and New Mexico recent rains have further improved
cattle and sheep ranges, insuring sustenance for livestock which had been weakened by the winter
drouth.
Ranges

"
)

..
'

"

'I

The early spring movement of cattle
in Texas appears to be considerably
lighter than that of last year. The
prospective nu~ber of grass-fed cattle to be moved

Movements
and Prices

is estimated at 80 per cent of last spring's movement. The reverse condition, however, applies to
sheep, which have been favored by abundant pasturage, and it is believed that the present movement of
grass-fattened sheep will largely exceed the light
shipments that characterized the movement a year
ago. The Fort Worth market offered attractive
prices on all classes of animals throughout most of
the month, but when the supply became more liberal
toward the end of March quotations took a downward turn that all but wiped out the early gains.
The market, however, took care of all receipts in a
satisfactory manner, the demand being particularly
steady for hogs and sheep. Lambs, after selling up
to $16.00, dropped back to a point slightly below the
closing level of the preceding month. As this is written cattle values show a declining tendency, while
the hog market continues to reflect a firm demand
with prices about steady with those at the close of
March.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
=.'1 1111111111111111111111111111111 111111111111111111111111111111111111111 111111111111 11 11111111111111111111111111 111111111111111111111111IIIIIIIIIIIIIII IIIIIIII IIIII,!::

FORT WORTH LIVESTOCK RECEIPTS.
March
1923

February
1923

Cattle ........37,341 35,841 G
Calves ........ 6,188
7,295 L
Hogs ..........66,962 43,843 G
Sheep ........ 7,294
5,912 G

Ga in or
Loss

March
1922

1,500 53,833
1,107 11,406
23,119 70,258
1,382 45,120

Gain or
L oss

L 16,492
L 5,218
L 3,296
L 37,826

~II IIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 11111111 1 1111111111 11 1111111111111111111 1 111111111111111111 11IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIS

5

~IIIIIIIIIIII"IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111.:.

COMPARATIVE TOP LIVESTOCK PRICES
Beef steers ............................
Stocker steers ........................
Butcher cows ........................
Stocker cows ..........................
Calves ....................................
Hogs ........................................
Sheep ......................................
Lambs ....................................

Ma rch
1923

$ 9.25
7.00
5.50
4.00
9.25
8.45
9.00
16.00

February
1923

$ 8.75
7.30
5.50
4.00
9.00
8.50
9.00
14.50

March
1922

$ 8.50
6.75
5.75
4.25
9.50
10.60
9.25
15.10

~1I1111111111111111111111111111111111111111111111111111111111111111111 11111111111111111111111111111111111111 111111111111111111111111111I111111111111111111111111111~

WHOLESALE TRADE
The upward trend of wholesale distribution in
this district continued during the past month in
nearly all lines of trade. There was a substantial
increase in sales over March, 1922, in every line of
trade, and dry goods was the only line to show a
recession from the February volume of sales. Despite that decline in March the dry goods business is
reacting well under the stimulus of more favorable
weather conditions prevailing in April.
While wholesale dealers, as a rule, are optimistic
over the present expansion in business, they are
aware of the dangers in the situation, and are watching carefully the trend of production and credit expansion and are adhering to a conservative policy in
credit extension.
Prices continue as a factor of uncertainty. In
general, prices are still rising, but some basic raw
materials have given evidence of reaction. Nevertheless, labor troubles are being avoided by general
concessions for higher wages in basic industries,
which will tend to offset a decline in raw materials.
In consumptive channels some hesitation is apparent on account of the higher prices, but the increase
in employment in industrial centers, with higher
wages for workers in some quarters, together with
the prospects for good crops. in the country district~,
has tended to stimulate consumption.
Dry
Goods.

The distribution of dry goods at
wholesale, as measured by the dollar value of sales, reflected a decline of 5.7 pel' cent as compared with the previous
month, but was 13.9 per cent larger than during
March a year ago. Sales for the first three months
of the year were 29.6 per cent greater than during
the corresponding period of 1922.

The upward movement of prices is now manifesting itself more strongly in finished commodities, despite the efforts of manufacturers and jobbers to
keep prices from advancing far enough to check consumption. Most raw materials are either going
higher or are holding steady. While cotton has to
some extent reacted downward, the future trend is
still uncertain. The textile mill workers have been
granted higher wages to avoid labor troubles, which
has added to the cost of production.
Dealers report that while the retailers appear to
have confidence in the market, the consumer buying
has been slow and retailers have been buying on a
conservative basis to avoid an excessive accumulation of stocks.
Despite the adverse developments in the trade,
dealers generally are optimistic over present conditions and state that the outlook is promising.
Reports indicate that collections are from fair to
good.
Hardware

The wholesale hardware trade experienced a large seasonal expansion
during March when the sales of eleven firms reflected an increase of 40.3 per cent over the corresponding month last year. The first decisive improvement in the hardware trade since 1920 occurred in the spring of 1922. In June of the latter
year, sales, for the first time in more than two years,
exceeded those of the same month of the previous
year. Since that time, however, steady improvement
has been in evidence. During the first three months
of this year sales averaged 37.3 per cent greater than
during the same period of 1922. Seasonable items,
such as garden tools, poultry netting, screen wire,

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

6

screen door hardware, and sporting goods are in
strong demand. The demand for building hardware
has been good on account of the enormous amount
of building under way. Prices are still advancing
in sympathy with the increase in iron and steel
products.

,
"
'
..I.,'
,)

')

I,

farmers more confidence in their ability to buy and
has made more imperative the necessity for equipping themselves with sufficient implements to carry
on farming operations satisfactorily.

Furniture

Drugs.

The l\1"arch reports from eight
wholesale drug firms disclose an increase of 8.3 per cent over February sales and 2.9
per cent over March, 1922, sales. For the season,
January 1st to March 31st, sales were 9.6 per cent
greater than during the corresponding period of
1922. The buying demand is generally reported to
be holding up well, but some dealers report sales
somewhat slow. While buying for the most part
is satisfactory, the retailers are confining their purchases principally to immediate needs and do not
show any disposition to anticipate their forward
requirements. Wholesalers report that prices have
continued the upward trend which has been noticeable for several months.

Farm
Implements

The March sales of farm implement
firms reflect an increase of 10 per
cent over February and 187.8 per
cent over March, 1922. The fact that sales for the
first quarter of 1923 were 134.6 per cent greater
than sales for the same period last year is indicative
of the substantial improvement which has occurred
in this line of trade. While the upward movement
of prices has to some extent had an adverse effect
upon trade, the present crop outlook, which appears
good in all sections of the district, has given the

~

!

The distribution of furniture during
March continued at a high level,
sales being 23 per, cent greater than during February, and 27.7 per cent greatr than during March,
1922. There is a strong demand for all classes of
furniture at retail, which in turn is being reflected
in wholesale channels. While considerable buying
has come from the country sections, the heaviest distribution has been in the larger cities on account of
the expanded program of home building which is
being carried on more extensively in these centers
than is the case in the country districts.

Groceries

The March sales of thirteen grocery
firms were 9.0 per cent larger than
during February and 11.9 per cent larger than during March, 1922. During the first three months of
this year the dollar volume of sales was 15.5 per
cent greater than during the corresponding period
last year, the increase being attributable to some
extent to the higher level of prices. The buying
demand has continued good in all sections of the district, and the general outlook is reported by several
dealers to be improving. Some dealers state that
April business has slowed down to some extent, but
this is largely due to the seasonal slackening of business. Prices on all staple articles continued their
upward trend.

CONDITION OFP:~~t~!~~fLfnc;!~! ge~!~~eGinMARCH,
-Net Sales-

i

1923

- Net Sales-

-Stocks-

+134.6
+ 24.2
+ 9.6

- 16.6 + 2.0
................. ............... .
+ 8.1 + 2.7

i

I~~~:2}~;·.·••• •••• •• :·••·••.•••••••••·:... .. ... . ................ i:i:~!;Jl.;~:.:;:;':;t:!:· ~i;d:;;,~i I
= = ~: Farm Implements.....................................................................................

Furniture ........................................................................ .'..........................
Drugs .........................................................................................................

+++182277·:8~

+t 210~ . . O~

i======

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8

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

a.!IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111111111111111111111111111111111111 .. 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111.::

~

CHARGES TO DEPOSITORS' ACCOUNTS

I~~:~!:::~:

;

M~'~!:!'ii:gg! F'b';'~:gii!!g T;!1

Dallas .....................................................................
El Paso ...................................................................
Fort Worth .............................................................
Galveston ...............................................................
Houston ...................................................................
San Antonio ...........................................................
Shreveport, (La.) ............................... :..................
Texarkana (Texas ) ...............................................
Tucson .....................................................................
Waco .......................................................................

159,058,000
28,543,000
105,992,000
73,963,000
99,384,000
26,826,000
29,428,000
10,948,000
6,475,000
16,184,000

5.6
26.4
5.5
10.5
16.2
17.9
31.3
3.3
+ 21.1
+.5

148,763,000
31,696,000
142,066,000
65,040,000
105,969,000
27,271,000
30,994,000
6,849,000
6,666,000
14,800,000

$660,590,000

Totals, Eleventh District ...........................

+
+
+
+
+
+
+

M';';!:iii:ggg

167,932,000
36,070,000
111,870,000
81,763,000
115,945,000
31,638,000
38,645,000
10,587,000
7,843,000
16,262,000

$595,416,000

+ 10.9

'T~11

$616,780,000

+
+
+
+
+
+
+
+
+

12.9
13.8
21.3
25.7
9.4
16.0
24.7
54.6
17.7
9.9

+

7.1

M" "ons JcmuQ.YV Febyuary !V/aych Apn'
June
July Auql/st SeptemberOctobel' Novembey December MII/,On.S
O
f
Dolla 1'05
Dollal's
r---~--~----+----+----r---~---4----+----+----~--~--~

Or

gOOr,~~-----+-----r~--~--__+-____~____~__-4____-+____~____~__~!OO
:t> '-

...... ,

70orrA~,~·'~____~~__~~~____-+____-+____~____~~~~.-~.~.~~__._:~~~~.,~.~_~-~.~.:~~~~
..... ~ .. ... ..
c,~:\.

V

'-'-'-

." . . . -- .............. .

60 0 '--_B_..!,.'-:;':-1 ..."'":"'..... "±t..-"',.. :!Ol-_ _ _r-_.-_.-ti'-_._-_.--+.---.--.-+.--./---::oF'~:.../-._-_--+___ ...._-__'"'+__-j bOO
•• '~-' ./""/::...
...•.
..
'+~_ ....
-1:;.

I

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

".,

_.'

-

......

~""

..................:&-_.~..
- ---

~

;!'"
... - ....
500r---~-----r----~____r-__~____~··_···_~_~_~~··_···_··_~__~__~____~____+-__~50o

.....:;.::;:..::.:,.

.....

~

40°r----+----~----~---+----4---__~---+----+---~~--~--__+-__~4oo
'" I
III
:

~~

3qo

300

I

A

1923

B ............. 1922
I"

200

C - - - - 192 t
1920

D-'-'-'

Zoo

'~"

I'

100

100

DEBITS TO INDIVIDUAL ACCOUNTS AT THIRTEEN CITIES IN ELEVENTH FEDERAL RESERVE DISTRICT DURING 1920, 1921, 1922, AND 1923

Acceptance
Market

Acceptances executed by banks of
this district and which were outstanding on March 31st amounted
to $2,465,248.65 as compared to $2,325,415.61 on
F ebruary 28th. The volume of outstanding accept-

ances based on the domestic shipments and storage
of goods declined from $1,118,426.27 on February
28th to $893,549.42 on March 31st. On the other
hand, the outstanding acceptances executed against
import and export transactions rose from $1,206,-

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

9

989.44 on February 28th to $1,571,699.23 on March munity as well as from the country banks which
31st. The volume of bankers' acceptances held in are supplying funds for carrying on business in
the portfolio of the Federal Reserve Bank declined country towns and to farmers for carrying on farm
from $21,402,428.25 on February 28th to $20,662,- operations. However, deposits were $39,004,000
972.96 on March 31st.
greater than on March 29, 1922. Their investments
in Government securities amounted to $61,927,000
There was a slight increase of on March 28th, which is $7,271,000 greater than
Condition of
Reserve City
$884,000 in the loans of reserve city those owned on February 28th, and $20,000,000
Banks.
banks during the month of March. greater than on March 28th a year ago. The bills
The net demand deposits of these payable and rediscounts with the Federal Reserve
banks dropped from $247,213,000 on February 28th Bank decreased from $3,071,000 on February 28th to
to $236,134,000 on March 28th, showing a net loss $2,716,000 on March 28th, or a reduction of $355,000.
of $11,079,000, which indicates the withdrawal of Due to the loss in deposits, the ratio of loans to dedeposits to meet the increased demand for funds posits rose from 87 per cent on February 28th to
which generally materializes at this season of the 91 per cent on March 28th. This ratio stood at 97
year. This demand comes from the business com- per cent on March 29, 1922.
'i

March 28, 1928.

Number of reporting banks ................................................................... .
2. U. S. securities owned ............................................................................. .
3. All other stocks, bonds, and securities owned ..................................... .
4. Loans secured by U. S. Government obligations ............................. .
5. Loans secured by stocks and bond s other than U. S. Government
obligations ............................................................................................. .
6. All other loans ........................................................................................... .
7. Net delnand deposits ..... _
........................................................................... .
8. 'l'ime deposits ............................................................................................. .
9. Reserve with Federal Reserve Bank ..................................................... .
10. Bills payable and rediscounts with F edera l Reserve Bank ................
11. Percentage of loans ( * ) to net demand deposits ..............................
*Loans include only items 4 and 6.
1.

Operations of
the Federal
Reserve Bank

The loans of the Federal Reserve
Bank to member banks, which began to increase early in March, reflected a gradual gain throughout
the month and on the 31st stood at $19,961,116.90,
as compared to $16,913,248.17 on February 28th,
representing a net increase of $3,047,868.73. Due to
the demands for credit by banks outside the reserve
cities loans increased to $21,116,534.55 on April 16th,
or a gain of $1,155,417.65 during the sixteen day
period. It is to be noted that our loans to member
banks on April 16, 1922, amounted to $34,541,444.03
which was $13,424,909.48 greater than the amount
on the same date this year. While loans have been
steadily increasing for the past six weeks, the demand for funds from the member banks continues
light despite the fact that the farmers are well
along in their planting operations. This is due to
the fact that as a general rule the banks were able
to liquidate the major portion of their frozen loans

52

March 29, 1922

52

$61,927,000
9,515,000
5,137,000

$41,927,000
7,890,000
5,065,000

52,374,000
211,598,000
236,134,000
75,666,000
25,623,000
2,716,000
91%

40,705,000
187,246,000
197,130,000
63,004,000
21,605,000
4,055,000
97 %

last fall and are now able to draw up their own resources to finance the greater part of their customers' needs.
The total amount of bills held by this bank increased from $38,315,686.42 on February 28th to
$40,624,089 .86 on March 31st, distributed as follows:
:!1 11"1I11111111111I1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~

Member bank's collateral notes secured by
U. S. Government oblig·ations ..................$ 980,850.00
Rediscounts and all other loans to member banks .................................................... 18,980,266.90
Open market purchases (Banker s' acceptances ) ............................................................ 20,662,972.96
Total bills held ................................................ $40,624,089.86
.. jlllllllllll llllllll llllllllllllllll lllllllllllllllllllill111111111 111111 111111 11111 111111 111111111111111111111111/11111111111111111111 1111111111111111 111111 1111111 ..

The amount of Federal reserve notes in actual
circulation on March 31st was $29,031,160, as compared to $30,799,920 on February 28th, or a net reduction of $1,768,760 during the month. It is to be
noted that our note circulation on the above date was
$1,209,171 larger than on the corresponding date
last year. The reserve deposits of member banks

I,

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
the previous seven years. The March statistics show
the same number of defaults as February, but the
indebtedness of firms failing during March amounted to $2,474,504, as compared to $2,104,596 during
the previous month. The amount of liabilities involved in March failures was the largest for any
month since August last year.
The appended chart, which shows failures for
1922 and 1923, discloses the fact that after the peak
was reached in February, 1922, the liabilities of de-

11

faulting firms took a definite downward trend,
reaching a low point in October of that year. (The
unusual aggregate of indebtedness shown for August
was due to one failure involving liabilities totalling
more than $4,000,000). Each month since October,
1922, (with the exception of January, 1923) the
liabilities of defaulting firms have steadily risen.
This seems to indicate that, while there has been a
substantial recovery in business, weak spots in the
business structure still exist, which warrant caution
in the extension of credit.

!""""''''''''"''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''"'"''''''''''' ' '''''''~~:;;;;~'~;:~'';:;:~~;~''''''"'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''1

I

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Thousand.-J an F4b.Mar A
e
lpr Ma
XjJune July Au~ ~ (X,

Of

Nov Dec Ja.n Fieb Mar Apr Ma J .u ne J uty_ A
I ~ S,~it ()c"t Nov 0 ec Number
II

of

Dollars

Fa,lul'es

6000

600

5000

4000

/

V\

500

j

3000

2000

11

-- -

IV

~
I~~tles 1

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700

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400

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192L

~

COMMERCIAL FAILURES IN THE ELEVENTH FEDERAL RESERVE DISTRICT DURING 1922 AND 1923

/0

12

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

PETROLEUM
The March output of crude oil in the Eleventh
Federal Reserve District amounted to 11,212,490 barrels as against 10,363,280 barrels during the previous month. This larger output, however, was due to
the long.r month, as the daily average during March
amounted to 361,693 barrels as compared with 370,117 barrels during February, showing a decrease of
8,424 barrels in the daily average run. The daily
average yield of Texas fields decreased from 291,391
barrels during February to 282,314 barrels during
March. The Louisiana territory, which had been
showing a steady decline for the past several months,
came back during March with a gain of 653 barrels
in the daily average yield.

11,584 barrels in February to 12,191 barrels during March. In the Moran-Shackleford County field
the output for March amounted to 21,945 barrels.
The Stephens County field, however, showed a decline in the daily average production from 29,886
barrels in February to 29,621 barrels in March.
While the total production of the Haynesville
(La.) field increased from 1,005,870 barrels in February to 1,106,730 barrels in March, the daily average yield for the latter month was 223 barrels less
than the previous month. The Bellevue (La.) field
increased its daily average output from 6,388 barrels
in February to 6,650 barrels in March.

Further declines occurred during March in the
Texas Gulf Coast fields, despite the longer month
and the large increase in the initial production of
new wells. The actual production in these fields
amounted to 2,802,250 barrels as against 2,841,310
barrels during the short month of February, thereby
resulting in a reduction of 11,080 barrels in the daily
average yield. This indicates that the recovery of
oil from the old wells is rapidly decreasing. In the
Hull field there was a production slump of 6,335 barrels in the daily average yield. The average daily
output in the Goose Creek field amounted to 19,300
barrels in March as against 19,979 barrels during
the previous month.

Drilling
Results.

Despite the heavy rains and cold
weather during the month of March,
drilling operations in this district
showed a marked gain over the previous month.
There were 539 wells completed in March, of which
370 were producers yielding an initial flow of 50,888
barrels as compared to 348 completions in February,
including 239 producers with an initial yield of 26,708 barrels. Completions during March in the Texas
fields numbered 479 wells, of which 326 were successful, yielding an initial flow of 46,998 barrels as
against 317 completed during February, of which
212 were producers with a flush production of 25,223
barrels.

The total output of crude oil from the North Texas
district during March amounted to 1,996,970 barrels,
which is a gain of 232,445 barrels over the short
month of February. The daily average run of the
Burkburnett field increased from 24,423 barrels in
February to 24,787 in March. The largest gain in
this district was scored in the Holiday-Archer
County field where the average daily yield increased
from 5,681 barrels in February to 7,061 barrels in
March, due to the large amount of new production
added during the month. On the other hand, the
Electra field and the Young County field suffered
slight declines in the daily average production which
offset to some extent the increases in the other
• _.- .... R-.!I
fields.
" ,,',', - :'~,,:n.':,n ·~
:

Noticeable gains were registered during March in
the Texas Coastal fields both with regard to the
number of completions and the amount of new production added. There were 57 wells completed with
an initial flow of 16,250 barrels from 46 producers,
which compares to 40 completions during February
with a flush production of 8,278 barrels from 33
producers. The Goose Creek field scored 13 completions, all of which were producers, making an initial
yield of 4,690 barrels as compared to 5 completions
during the previous month with 750 barrels of new
production added from four producers. The Hull
field scored 9 producers out of 16 completions, which
yielded an initial flow of 5,375 barrels. This compares to 11 producers obtained out of 12 completions
during February, which added 4,480 barrels of new
production.

~-";-'1

, Production gains were registered in the CentralWest Texas fields during March, when the output
amounted to 3,676,365 barrels as compared to 3,309,075 barrels during the previous month. The
Mexia-Currie district produced 1,939,670 barrels of
oil in March as compared to 1,740,095 barrels during the previous month. The Ranger-Eastland
County field increased its daily average flow from

Drilling was more active in the North Texas district than in any other section of the state. In fact
during March there were more completions and a
greater amount of new production added to the district than has been the case in any month since
July, 1920. There were 214 completions during

13

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
March, of which 153 were producers as compared to
105 completions during February with 73 producers.
The initial yield obtained from these new producing
wells amounted to 19,026 barrels in March, as
against 6,922 barrels during February, or a net gain
of 12,104 barrels. The Holiday-Archer County section easily led all the other fields in the North Texas
district, having completed 85 wells of which 56 were
producers, netting a combined initial output of 8,155
barrels. This record compares with 19 producers
obtained out of 28 competitions during February,
which added 2,214 barrels of new production. The
Electra field dropped to second place with 64 completions including 55 pr oducers with a combined
initial yield of 4,771 barrels. The Burkburnett field
had 39 completions, of which 27 were producers with
a flush produ~tion of 3,824 barrels, which compares
to 10 completions during the previous month when
867 barrels of new production were added from 8 producers. The large increase over last month was
due to developments of the Hirschi pool, where a
large number of producing wells were completed.
The initial production ranged from 300 to 800 barrels to the well. In Young County, there were 10
producers obtained out of 19 completions, which
added 1,975 barrels of new production.
Completions in the Central-West Texas fields reflected a sharp increase during March with a corresponding addition of new production. Out of the
152 completions 95 were successful, making a flush
production of 9,819 barrels. Renewed activity was
noted in Mexia-Currie sections, where there were
13 completions with only two dry holes. The 11
producers added 1,945 barrels of new production.
During February there were only 4 successful completions yielding an initial output of 240 barrels.
About the middle of March the deep test well drilled
in during January in the oM Corsicana shallow field
resumed its flow after being drilled several feet
deeper. Later in the month other producers were
completed and indications point toward a further development of this field. Stephens County reported

25 completions in March as compared to 20 in February, but the 20 producers completed in March
made a flush production of 2,965 barrels, as against
3,835 barrels from 11 producers completed during
February. The Moran-Shackleford County field
registered 70 completions, of which 39 were producers, yielding an initial flow of 2,351 barrels as
compared t o 31 producers out of 43 completions during February, which added only 225 barrels of new
production. Other fields produced a greater number
of completions but failed to show any appreciable
gains in new production.
The North Louisiana territory completed 60 wells
during March, of which 44 were successful, yielding
an initial flow of 3,890 barrels. This compares to 31
completions in February with an added production
amounting to 1,485 barrels. The Haynesville field
had 9 completions, all of which were successful, yielding a flush production of 925 barrels. With the passing of interest in the Haynesville field, operators
are now centering their attention on the Bellevue
field. F or some months this field has been void of
interest, but with the increases in crude oil prices
further · developments are now under way. Seven
wells were completed during March, which yielded an
initial flow of 215 barrels.

Crude Oil
Prices

With the advance on Texas Coastal
oil from $1.50 per barrel to $1.75
per barrel on March 15th, the crude
oil market ceased its upward trend, and early in
April suffered a reaction when Mexia crude' and Currie crude were reduced 20 cents per barrel. The
posted price on Mexia crude now stands at $2.00 per
barrel, and Currie crude at $2.40 per barrel. It
will be remembered that the crude oil market began
its upward movement early in December, and within
the interval of four months price advances on crude
oil at the various fields ranged from 25 cents per
barrel to $1.10 per barrel.

E.' 1 1 1 1 1 111111 1 1 111 1 11 11 11 1 1 111111 1 11 11 1 11 1 1 11 1 11111 1 111 1 11 1 11 11 1 11 1 11 11 1 11 1 11 11 1111 1 11 1 111111111 1 111 1 11 1 1 1 11 1 111111111111 1 11 1 11111 1 1111111 1 1 11 11111 11 11111111 11 11 1 11 1 1111111 111 11 1 11 11 1 1 111 1 11111111 1 11 11 11 1 11 1 111 1 1 11 11 111111111 11 11 1 11 11 111111 1 111 11 1111 1 111111 1 111111111111111 1 111 1 111 1 111 11 111 1 11 1 1111 1111111111111 1 111111 1 111111111 11 11 1 1111111 1~

OIL PRODUCTION
Total

Increase or Decrease

Febl'UllrY

MUI'Ch

DailY Avg.

Total

Daily Avg.

Total

Dui ly Avg.

Field:
North Texas ....................................................
Central-West Texas ......................................
r exas Coastal ................................................
Miscellaneous fields ......................................

1,996,970
3,676,465
2,802,250
276,055

64,418
118,596
90,395
8,905

1,764,525
3,309,075
2,841,310
244,050

63,019 Inc.
118,181 Inc.
101,475 Dec.
8,716 Inc.

232,445 Inc.
367,390 Inc.
39,060 Dec.
32,005 Inc.

1,399
415
11,080
189

Totals, Texas ..........................................

8,751,740

282,314

8,158,960

291,391 Inc.

592,780 Dec.

9,077

79,379

2,204,320

78,726 Inc.

256,430 Inc.

653

2,460,750
orth Louisiana ..............................................
I N "
849,210 Dec.
8,424
370,117 Inc.
361,693 10,363,280
11,212,490
Totals, 11th District..............................

1r.1II111111111111111111111111111111l11l11l11l11l11l11l111l11l1111111111111111111111 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111II11111111111111111111111111111111111111111111111111111111111111HIIIIIIIIIIIIIIII1I111111111111rllllllllllllllllllllllllllll~

i,
"

MONTHLY REVIEW OF BUSINES S AND INDUSTRIAL CONDITIONS

15

fl l ll l llll l llll l llll l lllllllllllllllll'llllllllllllllllll1 1 11111111111111111111111111111111111111111111111111111111111111 1 111111111 1 1111111111 11 11111 1 1111111111 1 111111 1 11111111111111111111111111111111111111111111111111111 11 1111111111111111111111 1 111 1 11 1 1111111111111111111111111111111111111111111I111111I111111I11I111I11I11 1 11111 1 1I111111111 ~

I

BUILDING PERMITS
March, 1923
Austin .....................•.. .......
Beaumont .................: .......
Da llns
El P as ~:::::::::::::::::::::;:::::::
Fort Worth ...... ..........·.......
Galvest on ...... .......... .. .'......
Houston ...........................
Port Art hur .....................
San Antonio ................: ....
Shreveport .................. :....
Waco ............................: .. ..

'I'oml

.............................

No.
64
120
470
102
284
277
584
184
378
320
37

-2,810

Valuation
63,295
173,274
2,059, 537
212,617
655,122
174,962
5,848,319
1 55,~6 5

1,137,511
1,612,344
79,065
11,661,391

;

Inc. or
F ebruary, 1923
Dec.
V a luation
No.
567,976 _ 90.4
85
184
319,133 _ 45.7
1,760,495 + 17.7
458
77
177,270 + 19.9
237
550,369 + 19.0
287
111,562 + 56.8
484
1,675,051 +219.8
123
695,680 _ 77.7
262
624.220 + 82.2
280
355,265 +858.8
39
160, 274 _ 47.4

Inc. or
March, 1922
Dee.
No.
Valuation
8.7
36
49,020 +
109
141,929 + 22.1
492
1.598,007 + 29.8
97
167,095 + 27.2
219
1,057,501 _ 38.0
182,950 _
862
4.4
619
1,328,925 +302.5
124
89,828 + 78.1
450
682,366 + 79.9
240
477,543 +287.6
49
100,980 _ 21.7

Firs t Quarter
1923
Valuation
No.
745,360
154
650,077
378
1,890
6,619,832
280
692,897
836
2,068,278
452,218
865
1,587
7,728,868
1,021,529
458
986
2,352,486
866
2,492,012
189
878,107

First Quarter
Inc. or
1922
Dec.
No.
Valuation
83
154,900 +381.2
239
813,107 +107.6
1,139
5,501,808 + 20.3
265
629,846 + 30.8
587
1,701,796 + 21.2
962
770,819 _ 41.8
1,402
3,847,103 +180.9
282
173,667 +488.2
1.125
1,679,091 + 49.0
640
1,112,288 +124.1
132
801,656 + 23.7

2,361

2,796

7,934

6,806

7,067, 294 +

65.0

5,821,094 + 100.3

25,191,094

15,485,525 +

62.7

::.1111111111111111111111111111111 11111 1111 111111111 111 11IIIIINIIIII IIIIIIIIIIIIIIIIII IIIIIIII IIIIII IIIIIIIII IIIIIII1IIlII IIII IIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIllIIIIIIIIIIIIIUllllllllllilllllllll 11111111111 11111111111111111111111111111111111111111111111111111111111111 1111111 11111111 11111111111111111111111111111111111111111111111111.

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by /he Federal Reserve Board 05 of April !l6, 1923.)

Further increases in production of basic commodities, in wholesale prices, employment, wage rates,
and wholesale and retail trade, took place in March.
PRODUCTION: Production in basic industries,
according to the Federal Reserve Board's index, increased 4 per cent in March to a level 8 per cent
higher than at the 1920 peak and 67 per cent above
the low point of 1921. The output of pig iron steel
ingots, automobiles, and crude petroleum, an'd the
mill consumption of cotton exceeded all previously
reported monthly totals. Building operations showed
a, further large expansion and the value of contracts
let for residences in March was the highest on record. Railroad freight shipments have been larger
every week this year than in the corresponding
weeks of the past four years. Car shortage has
been reduced to the lowest point since September,
chiefly as a result of the addition of new equipment,
a decrease in the number of bad order locomotives
and cars, and a concerted effort to increase the average loadings. Employment in the building trades
and in many lines of manufacturing continued to
increase in the Eastern States. The surplus of unskilled labor in the West reported in earlier months
is being gradually absorbed by the seasonal increase
in farm work. A number of leading textile mills,
steel mills, and packing plants announced general
wages advances ranging between 11 and 12112 per
cent, and numerous wage advances in other industries also were reported.
Trade: March sales by department stores reporting to Federal reserve banks were 22 per cent above
those of March a year ago, partly because Easter
purchases were m.ade in March this year, whereas
last year such purchases were largely deferred until
April. Stocks of goods held by department stores
were 6 per cent larger than those held a year ago,
but this increase was not as large as the increase in

sales and hence the rate of stock turnover has been
somewhat more rapid. Sales by mail order houses
were larger than for any month since November,
1920, and 35 per cent larger than March, 1922.
Wholesale trade in all reporting lines was larger than
in March a year ago.
WHOLESALE PRICES: Wholesale prices, as
measured by the Bureau of Labor Statistics index,
advanced 1.2 per cent during March and were 15
per cent above the low point of January, 1922. AS
in recent months, the prices of metals and building
materials showed the greatest increases, while fuel
prices showed a further decline from recent high
levels. Compared with a year ago, metals were 37
per cent and building materials 28 per cent higher.
The cost of living increased slightly more than one
per cent during March to a level of 3 per cent higher
than a year ago.
BANK CREDIT: During the month prior to
April 11 a more moderate growth in the demand
for credit for member banks in leading cities resulted in an increase of about $48,000,000 in their
loans made largely for commercial purposes, as compared with an increase of $235,000,000 in the preceding month. Through withdrawal of funds from
investments and a further inflow of gold, member
banks have been able to meet demands of their CUI3tomers for increased credit and currency independently of the reserve banks. Consequently, the tota1
volume of Federal reserve bank credit, measured by
total earning assets, has remained relatively constant during the past month, and in fact since the
seasonal liquidation at the turn of the year. The
volume of Federal reserve notes in circulation has
also changed but little as the larger demand for
hand to hand money has been met chiefly by an increase in other forms of money in circulation. There
has been little change in money rates from those prevailing in March.

16

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

BANK CREDIT

BANK CREDIT

ALL fEDERAL RESERVE BANKS

800 MEMBEn BAi'l\{S IN LrADl ilG CITIES

MILLIONS Of DOLLARS

M I LLIONS Of DOLLARS

4000

BILLlCNS

or DOLLARS

DIUIO tlS Of DOLLARS

4000

16

16

3500~------~-------4--------~------4--------43S00

14

14

'.'

j ,r

rr-f4~

!~r/'\~!I ~

·fY; \~~
""V'-I'"-----f~ ~--l----+----j3000
\

3000f---

\\1

2 500 I'"'~A :
•. -,'."J

:

..

:

\.

~

Vp.R
.NOTES

~~

r

~

••• DISCOUNTS
DEMAND
DE
;?

--'~
'---'~",\. ,+--------l--------I
o;-

,.;.ff,j ,

2500

1'-

., -..
..

...... LOANS AND

12

~

' 4-

10 I'-

..

~. ~ ~

12

K

10

~

2000~------+-------4----r--~------~-------4Z000

8

8

6

6

"o

'I,

,~

1 500~------~-------f------"":
··':1._-------l--------l 1 500
"

EARNING

_",

~:S£TS ", J •

''1'.-'''-:'.~.~r tJ

!l,-':I

100011 --------!--------I ···------4-----"'---~----__l 1000

4

r-'"

••Ifi••

500 ~------ I------__I -------+------~-----~S OO

2

TIME
DEPOSITS p

PRICES

2

1920

1919

1921

1923

1922

PERCENT

300

:l00

25 0

COMBINATION 0 1' 22 INDIVIDUAL SERIES
CORRECTED FOR SEASONAL VARIATION
( /!lI!1 - IOO)

PER CENT

PER CENT

250

160

14 0

200

pJ
IV

r'\,
r\........

·:.

-"

o

INDEX OF PRODUCTION IN BASIC INDUSTRIES·

I ND~X

PfRCWT

~

. --"
1

o

NUMBERS Of WHOLI:SALE FRICES
U. S. ElUREAU Of LABOR STAT ISTICS
( MONTNLY AVERACE 19/~ "00)

,.....
:'#•••• .::,r--.

1NV£!JTM£NTSl·· ..'··

I

150

140

J

120

200
100

,..,.- l.;

150

./

160

\

/\J

"V

~

\

80

120

I

~
/"
"V

100

W'

eo

60

6o

40

40

20

100

20

100

5o

50

LATEST FI PURE-

o

0

1919
Note:

1920

1921

1922

1923

Bnse Adopted by United States Burenu of Labor Statistics

o

o
1919

1920

1921

1922

1923


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102